HomeMy WebLinkAbout1984-06-05; City Council; 7767; 1983-84 financial statements auditor selection0 - J7J: Clt- OF CARLSBAD - AGENL BILL
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SELECTION OF CITY AUDITOR FOR TITLE
AUDIT OF THE 1983-84 FINANCIAL
IEPT. 'IN I STATEMENTS
DEPT. HD. I CITY ATTY Dc6
RECOMMENDED ACTION: Adopt Resolution No. 7618
for audit services for audit of the Citv's 1983-84 financial statements and accepting the proposal of Deloitte, Haskins & Sells
authorizing the City Manager to issue a' letter indicating the City's intent to utilize the services of Deliotte, Haskins and Sells for the audit of the City's financial statements for the fiscal years 1984-85 through 1987-88.
ITEM EXPLANATION
The City of Carlsbad annually prepares financial statements which must be audited by
an independent certified public accountant.
various qualified firms for the preparation of these statements and audit services every three to five years. During the past three years, the City has used the services of Conrad and Associates, a CPA firm located in Newport Beach for the
annual audit.
The City requests proposals from
This year, the City requested proposals from eight firms and received four
responses. These responses are summarized below:
COMPANY Arthur Young & Company
Peat, Marwick, Mitchell & Co.
Coopers & Lybrand
Deloitte, Haskins & Sells
Conrad & Associates
Earnst and Whinney
Laventhal & Harwath
Arthur Andersen & Co.
AUDIT PRICE
$15,000
9,000
9,003
Declined to bid
No response
No response
No response
11,000
The four proposals received were reviewed by the Assistant City Manager and the
Finance Director.
Marwick and Deloitte, Haskins and Sells. capable of providing high quality audit services as well as management related services.
Interviews were held with representatives of Arthur Young, Peat, The staff's goal was to find a company
The staff is recommending that the City Council accept the proposal of Delo Haskins and Sells. All firms had very good qualifications. In the staff's the audit services could be performed equally well by all firms. Deloitte, and Sells has a stronger local management support staff which will prove to important to the City in the next year as we begin to tackle areas of organ
cash management, procedure audits and other projects.
FISCAL IMPACT
tte, opinion,
Has ki ns be zation,
The proposed price for the 1983-84 audit services is $9,000, which can be covered
from the $15,000 included in 1984-85 operating budget for audit services. additional $5,000 budgeted next year will be used to cover costs for management services outlined above.
The
EXHI BITS
Resolution No. 76 If
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RESOLUTION NO. 7618
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
ACCEPTINC THE PROPOSAL OF DELOITTE, HASKINS PND SELLS,
CERTIFIED PUBLIC ACCOUNTANTS, FOR THE PUDIT OF THE CITY'S 1983-85 FINANCIAL STATEMENTS PND PUTHORIZINC THE CITY MANAGER
TO ISSUE A LETTER AGREEMENT FOR SAID SERVICES.
WHEREAS, the City annually contracts with a certified public
accountant licensed in the State of California for the audit of the City's
annual financial statements; and
WHEREAS, the City has requested proposals from eight qualified firms
for such audit services; and
WHEREAS, after reviewing proposals from these firms, the City staff has
recommended that the City Council accept the proposal of Deloitte, Haskirw and
Sells; and
WHEREAS, funds for these services are contained in the 1984-85
operat hg budget .
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad that the proposal of Deloitte, Haskins and Sells is hereby accepted,
and the City Manager is authorized to issue the attached letter agreement to
Deliotte, Haskins and Sells for the performance of said services.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Carlsbad, California, held on the 5th day of J- 9
1984 by the following vote, to wit:
AYES: Council Menhrs Casler, Lewis, Kulchin, Chick and presmtt
NOES: Nh.le
ABSENT: RXE
MARY H. ER, Mayor
ATTEST:
kzdL 4P-
ALETHA L. RAUTENKRANZ, City Clerk]
(SEAL) .
1200 ELM AVENUE CARLSBAD, CALIFORNIA 92008
Office of the City Manager
3une 5, 1984
Frank Panarisi
Regional Government Services Coordinator
Deloitte, Haskins and Sells
701 B Street
Suite 1900
San Diego, CA 92101-8198
Dear Mr. Panarisi:
TELEPHONE: (714) 438-5561
The City of Carlsbad has accepted your proposal for audit services dated
April 19, 1984.
Under the terms of this engagement, you will perform the audit services and
submit reports by the dates specified in the attached request for proposal.
fee for this engagement shall be $9,000.
The
This engagement may be extended from year to year by the City without further
action by the City Council unless notified in writing by the City through the
audit of the City’s 1987-88 financial statements. The price for these future
engagements shall be set as described in page 46 of the proposal.
We appreciate your interest in providing these services to the City of Carlsbad
and look forward to a very valuable relationship between the City and Deloitte,
Haskins and Sells.
Sincere1 y,
FRANK ALESHIRE
City Manager
FA/ds
,- A
1200 ELM AVENUE CARLSBAD. CALIFORNIA 92008
I. TELEPHONE: (7 14) 438.555?
April 4, 1984
Citp of CsrImsbab
FINANCE DEPARTMENT
The City of Carlsbad invites qualified independent public accountants to submit proposals for the performance of an audit of its financial accounts and records
covering the period July 1, 1983 to 3une 30, 1984, for the purpose of rendering
an auditor's opionion regarding the fairness of applicable financial statements and the compliance of the City of Carlsbad with applicable legal provisions, in
accordance with generally accepted auditing standards.
GENERAL INFORMATION
The City of Carlsbad is a municipal corporation of the State of California.
principal mnicipal funds and departments (shown in Exhibit A), all of which will be subject to this audit, have a total appropriation of $30 million.
City staff includes 312 fulltime and numerous part time employees. revenues for 1983-84 will exceed $26 million.
The
The Estimated
The most recent audit of the City of Carlsbad was performed in 1983 for the
period 3uly 1, 1982 to 3une 30, 1983. The City received the California Society
of Municipal Finance Officer's Award for outstanding financial reporting for
1981-82 and has submitted the 1982-83 report to the Municipal Finance Officers
Association (MFOA) for review under the certificate of conformance program. A copy of this report is available from the Finance Director at the above address.
The City's accounting system is maintained on a Hewlett-Packard 3000 computer
system using software, which, in the past, has provided only basic accounting
data. A significant aunt of manual effort has been required to prepare audit
schedules and work papers from the data provided.
new accounting system as of April, 1984, which will provide better access to detail and summary data.
The City is converting to a
The City's accounting and reporting system designed to comply those described in Governmental Accountinq, Auditing and Financial Reporting (GAAFR), published by
the MFOA.
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PERFORMANCE SPECIFICATIONS
The following specifications cover the key areb of interest to the City.
Please
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
-. indicate to what extent you will be able to meet these specifications:
The audit shall be a financial and compliance review of - all City funds,
and the auditor shall issue an opinion letter on the City's financial statements and compliance with applicable legal provisions.
The audit shall provide a seperate compliance review of the City's
revenue sharing fund activity and the auditor shall issue a seperate
opinion letter on the City's compliance with revenue sharing
regulations as required by the Office of Revenue Sharing.
The audit shall include a compliance review of the City's Redevelopment
Agency activity and the auditor shall issue a seperate report and
opinion letter for the Redevelopment Agency's financial statements.
The auditor shall issue a seperate opinion and report on the City's
Water Enterprise Fund and financial statements.
The firm shall adhere to generally accepted auditing standards.
The audit shall cover the period 3uly 1, 1983 to 3une 30, 1984.
The firm shall submit a final draft of its audit report no later than
September 28, 1984.
The City will utilize its staff, where possible, to provide assistance to the audit staff, consistent with generally accepted auditing
standards. However, City assistance may be limited by available staff members.
The financial statements on which the firm shall express an opinion are
shown in sections 1, 2, 3, and 4 above. The City of Carlsbad expects to prepare these statements in accordance with guidelines provided in
GAAFR with assitance, where allowed by generally accepted auditing standards, from the firm. The City also expects the firm to assist in
the preparation (but not the audit) of the supplementary schedules
contained in the City's annual financial report.
The firm shall suhmit a draft written report on internal accounting control weaknesses, if any, not later than October 5, 1984.
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11. The firm shall submit a draft management letter no later than October
5, 1984 which shall identify management or system weaknesses observed, assess their effects on financial management or City operations,
propose initial steps towared eliminating these weaknesses and shall
include responses to these comments by the affected department heads. Areas of particular interest include internal finance department
organization, purchasing systems, accounts payable systems, payroll
systems, cash management functions.
12. If the auditor wishes to have the City type all schedules and
statements which will be included in the annual financial report, the
firm shall have draft copies of all statements prepared by September
14, 1984.
If the firm proposes to do all typing with the firm's staff, the firm
shall supply two unbound final original copies of the auditor's report,
financial statements and supplement schedules by October 5, 1984.
13. The partner in charge shall be available to attend up to three public
meetings at which the audit report may be discussed.
14. The firm shall make available its working papers to the City of
Carlsbad, federal agencies, state agencies and other parties upon the
direction of the City.
15. The firm shall hold an exit conference with the City staff within ten
working days of the submission of the final report documents.
- . - . - - - - . - - . !GTRUCTIONS REGARDING PROPOSALS
rte firm shall submit two (2) copies of the proposal to games F. Elliott,
inance Director, City of Carlsbad, at the above address before 5:OO p.m. on
-.xi1 20, 1984.
--.. . - -roposals must include :
1 . Qualifications of the firm:
a. Description of the firm and relevant prior experience.
b. At least three references which shall be officials of municipal
governments, including addresses and phone nuhers. c. A description of the partner, manager, and key staff to be assigned to this engagement inlcuding their resumes.
d. A description of the firms ability to perform management oriented
services other than audit services. e. A description of the firms management consulting experience and
staff .
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2. Technical Approach: a. Express agreement to meet or
b. A tentative schedule for the
described above.
audit .
excpd the performance specifications
performance of the key phases of the
c. A brief description of the audit procedures to be followed and
particular emphasis of the firm in performing the audit.
3. Fees: a. The maximum fee your firm will charge the City for the audit and
hourly rates for each level of staff if the City were to authorize
an expansion of scope for this engagement. b. Fees the firm will charge for other types of management consulting serivces.
EVALUATION PROCEEDURES
The City's Audit Committee inlcuding the Finance Director, City Treasurer and Assistant City Manager will evaluate the proposals on the basis of
qualifications, relevant experience, and the responsiveness of the bidders, as
well as the cost of the engagement. The Committee may elect to perform oral interviews of certain firms during the evaluation process. The Committee's recommendation will be presented to the City Council on or about May 1, 1984.
FURTHER INFORMATION
Please feel free to contact games F. Elliott, Finance Director, at
(619) 483-5626 if you need any further informationn.
visit the F inance Department for an on-site inspect ion at your opt ion. Also, you are welcane to
3FE/ds
Attachment s
DECEMBER 11, 1984
TO : CITY MANAGER
FROM: Finance Director
1983-84 ANNUAL FINANCIAL REPORT
The 1983-84 annual financial report for the City of Carlsbad has been presented to you for your review. This report is presented in the format dictated by the accounting profession and, therefore, may not provide the type of data of interest to the manager or City
Council. The following sections summarize the data presented in the annual report from a different perspective and includes some historical data for comparison purposes.
THE CITY IN TOTAL
During 1983-84 the City received $30.1 million in revenue from all sources. This was $7.2 million or about 31% above the 1982-83 total revenue of $22.9 million. During 1983-84 the City experienced a sustained period of building activity which began in late 1982-83. Building activity produces a number of fees such as the building permit fee, plan checking fees, business license fees, and capital fees which are received in advance by the City. The City then uses
these fees to finance future demands for services and capital facil- ities.
The chart below provides a comparison of total revenue for the City over the past five years.
- CIlY OF CARLSBAD
TOTAL CITY REVENUE -
,MILLION DOLLARS , TOTAL RMNUE
30
20
10
0 1979-80 1980-81 1981-82 1982-83 1983-84
F I SCAL YEAR
TOTRN
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For 1983-84 the total revenue Of $30.1 million was divided between the various funds as shown in the chart below. The general fund received about 56% or $16.9 million Of the total. Enterprise funds received about 20% or $5.9 million, capital funds received 13% or
$3.8 million and special revenue funds received about 11% or $3.3 million out of the total.Revenue necessary to meet the City’s outstanding general obligation debt totaled only 0.3% of revenue or about $100,000.
CIN OF CARLSEAD
TOTAL REVENUE - ALL FUNDS - 1983-84
ENTERPRISE 19. PIT& 12.7%
DEBT SERVICE 0.3%
GENERAL 56.5% I 16.9
total
VALUES IN MILLION DOLLARS
Total expenditures from all funds for 1983-84 reached $21.2 million.
This is about $2.1 million or 11% above the 1982-83 total of $19.1 million. The chart below provides a five-year comparison of expend- itures from all sources. When reviewing this chart it is important to remember the total includes capital funds which have expenditure patterns that vary widely from year to year, depending on the projects under constructionduring that year. --- CITY OF CARLSBAD
TOTAL CIN EXPENDITURES - ALL FUNDS
TOTAL EXPENSES
E” %d*. Y” A
MILLION DOLLARS i
FISCAL YEAR
TOTEXP
x
CITY OF CARLSBAD
COMPARISON OF CASH BALANCES - ?E&
FISCAL YEAR i ~
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CIN OF CARLSBAD TOTAL CASH - BY FUND 1983-84
AQ)(CY 8 5% 24 SPEC I hL
RMNLE 16 7% IlmRlUL SERVICE 6.m 17
DEBT SERVICE 5 R 16
Q)(ERK 1 4% 04 ENTERPRISE 18 9%- 53 I
t'
\
CAPITAL 42 7% 12
( VALUES IN MILLION WWRs )
TOTAL CASH - $28 1 YlLLloW ULC*W -_ __~ _--- --
Total expenditures for 1983-84 break down as follows: General fund $13.2 million--63% of total expenses,enterprise funds $4 million--19% of total expenses, special revenue funds $2.8 million--13.3% of total expenses, capital funds $600,000--2.8% of total expenses and debt service $500,000--2.4% of total expenses.
CITY OF CARLSBAD
TOTAL EXPENDITURES - ALL FUNDS - 1983-84
TOTEXPP I
ENTERPRISE 19.OX,
GENERAL 62.6% 1 -
13.2
VALUES IN MILLION DOLLARS
SPEC I AL REVENUE 13.3% 2.8
CAPITAL 2.8%
0.6
DEBT SERVICE 2.4% 0.5
Total revenues exceeded total expenditures by about $8.9 million, primarily due to building-related fees in several areas. This brought the 1983-84 cash balances to $28.1 million. Much of this cash is reserved or pledged to various capital projects. Of the total $28.1 million, $400,000 is related to general fund obligations. The remaining $27.7 million is technically reserved for capital projects, enterprise fund operations, grants or special revenue activities, deposits from other agencies or companies, internal service fund operations,or debt service payments. Council has discretion as to when and how these funds are to be spent. Although in mqny cases, the type of eligible expenditure is limited by law.
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GENERAL FUND
The City's general fund revenue totaled $16.9 million during 1983-84.
This total was about $3.9 million or about 30% above the 1982-83 total revenue of $13 million. The general fund saw growth in many
areas, as shown below:
SELECTED GENERAL FUND REVENUE SOURCES
(In Million Dollars)
1983-84
1982-83 1983-84 Over (Under 1 %
Source Revenue Revenue 1982-83 Change
Property Tax*
Sales Tax
Transient Tax
$ 4.3 $ 4.6 $0.3 $ 7.0
4.0 4.9 0.9 22.5
0.8 1.0 0.2 25.0
*Including property tax reimbursements
Construction Permits 0.5 1.1 0.6 120.0
License Tax on New
Plan Check Fees
-- 1.0 1.0
0.4 1.0 0.6 150.0
0.4 0.3 300.0
Construction --
Engineering Fees 0.1 -
TOTAL : .- $10.1 $14.0 $3.9 $ -- - -
Although the above table includes only a few selected revenue sources, these sources comprise a major part of the City's general fund revenue
and provide a good picture of where growth has occurred over the
past year.
During 1983-84 the City's economy maintained strong economic growth which is indicated by the large increase in sales tax, transient tax,
and development-related revenues. This growth trend began in the
later part of 1982-83 and contained through 1983-84.
General fund revenue was comprised
and permits,l3% fees for services.
in the form of interest, fines or
CITY OF CARLSEAD
GENERAL FUND RMNUES AND EXPENDITURES
RMNUE -
MILLION DOLLARS
EXPENSE -
CENRMXP
~
of about 67% taxes, 15% licenses The remaining 5% was received other minor sources of revenue.
GENERAL FUND REVENUE - 1983-84
( VALUES IN MILLION WLURS ) NS 12 SX 22
INTEREST 3 08
FINS 1 OX 03
0-R 0 6% 01
11 4 I I 1::- TOTAL RMNUE $16 9 MILLION
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PROPERTY AND SALES TAX REVENUE
1976-77 TO 1983-84 - - T3P w
MILLION DOLLARS 1 -II
4
3
2
1 76-77 77-78 78-79 79-80 80-61 81-82 82-83 83-84
FISCAL YEAR 1 PRWSALE
BUILDING PERMIT REVENUE
1981-82 TO 1983-84 - $&;I&
THOUSAND DOLLARS
7
1981-92 1982-83 1983-84 BPREVDET
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General fund expenditures totaled about $13.2 million, $1.2 million
or 10.0% above the 1982-83 expenditure of $12.0 million. Growth in expenditures has been summarized, as shown below:
EXPENDITURES
(In Million Dollars)
General Government
Public Safety
Public Works
Culture & Recreation
TOTAL EXPENDITURES:
1982-83 1983-84 Expenditure Expenditure
$ 2.2 $ 2.5
5.3 6.0
1.9 1.9
2.6 2.8
$12.0 $13.2
Increase
(Decrease)
$0.3
0.7
-0- 0.2
$1.2
- - -
% Change
13.6
13.2
-0-
7.8
10.0%
The chart below summarizes total general fund expenditures by type.
A major portion of the general fund expenditures are for public safety-- 46%. Of the remainder, about 19% goes to general government, 14% to public works,13% to parks and about 8% to Libraries.
CllY OF CARLSEAD
GENERAL FUND EXPENDITURES - 1983-84
PUBLIC WORKS 14.4X1
GENERAL 1
COV’T
18.9X 2.5
12.9X
-LIBRARY 8.3~
1.1
UNEXPP I TOTAL EXPENDITURES - $13.2 MILLION
CAPITAL FUNDS
The City has several funds reserved for the construction of capital
facilities from specific fees or revenue sources. During 1983-84
the City received about $3.8 million in capital revenues. These
revenues are collected primarily from developers who pay the City
at time of construction for future improvements. These capital fees
fall into three major categories; the public facilities fee, the
park-in-lieu (also known as park development) fees and the planned
local drainage facilities fees.
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Two capital sources, public facilities fees and park-in-lieu fees, are shown on -the following graph. In addition, the revenue from sewer construction fees has been included for comparison purposes. Revenue from public facilities fees grew from $664,000 in 1982-83 to $2.3 million in 1983-84, an increase of about 246%. This pattern was followed by sewer construction revenceswhich increased by 153% from $657,000 in 1982-83 to $1.7 million in 1983-84. Park-in-lieu
fees, however, did not experience the same growth due to two factors:
first, not all developers pay park-in-lieu fees and, second, both
Calavera Hills and LaCosta developers have dedicated land rather
than paying fees.
1979-80 TO 19a3-84
CmS
r 1
PARK DEV FEES - PU9LlC FAC mS - kssssm
THOUSAND DOLLARS
FISCAL YEAR
Capital expenditures do not follow the same pattern. The spending
of these capital funds generally occurs in large blocks due to the nature of capital projects. As the chart below shows, the City spent large amounts of capital funds during 1980-81 and 1981-82 for the construction of the expansion of the Encina Water Pollution Control Facility and the acquisition of land for parks and the safety center. In other years, relatively small amounts of capital funds have been expended.
.
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I -'
3000'
ZWO
1000,
0.
.-
r-*
f 1 ii
I)
9: :'
f. F,
1
I 4 LS rn k7
During 1983-84 about $132,000 of public facility fees and about $361,000 of general capital construction funds were spent on various
capital projects.
CAPITAL EXPENDITURES
1979-80 TO 1983-84
c.xs3 - "PEEP CSm
I
t?zxa COSF&€S W I FAC ws I
THOUSAND DOLLARS 5000
bylabout $1 million from $657,000 in 1982-83 to $1.7
Proprietary expenditures totaled about $4 million or
(8%) above the 1982-83 level of $3.7 million. Water expenditures make up the majority of these expenses.
CITY OF CARLSEAD
PROPRIETARY FUNDS
REMME EXPENSE Esssss -
MILLION DOLLARS
4
2
0
FISCAL YEAR L - -
million in 1983-84.
about $300,000 and sewer
I
t
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The water enterprise recorded a $58,000 net income for 1983-84 for 1983-84, while the sewer enterprise shows a $1,990,000 net income. The sewer net income figure includes $1,660,000 of sewer construction fees paid to the City for future improvements to the sewer system.
SUMMARY
The City of Carlsbad hs completed a year which included substantial
growth which was the result of an improved economy for building and
development and for consumers. This improvement follows several
years of slow growth and a stagnant or declining economy for much
of the nation. The growth in Carlsbad's revenue sources and in the rate of building arebeing compared to one of the slowest periods Carlsbad has experienced.
The recovery has effected tax revenue,development revenue, and fees
for services. The City has not, however, been required to provide
all the services or capital facilities paid for during 1983-84. the
.City can expect demands for services during the next year to two
years that were paid for in 1983-84.
will likewise lag the receipt of funds. the high levels of revenue
received in 1983-84 will be required in later years to finance City
operations and capital projects.
The demand for capital facilties
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/ I ,I . CI
/s
I '4
JAMES;. ELLJOTT Finance Director
jfFEYmmt I
Delfle Has kins+Sells
STATEMENT OF QUALIFICATIONS
AND
PROPOSAL TO SERVE
CITY OF CARLSBAD
Debitte Haskins+Sells
701 "6" Street
Son Diego, California 92101-8198 (619) 232-6500
Robin J. Jensen
Senior Consultant MaMgement Advisory Services
APRIL, 1984
Haskins-tSells
Mr. James F. Elliott Finance Director
City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008
Suite 1900
701 "6" Street
San Diego. California 921 01 -81 98
(61 9) 232-6500
TWX 91 0-335-1 573
April 19, 1984
Dear Mr. Elliott:
We are pleased to submit our Statement of Qualifications and
Proposal to serve the City of Carlsbad.
Our firm has the full range of accounting and consulting
services to assist you in meeting the many challenges presented
to your progressive and growing city. We believe our proposal is fully responsive tP your Request for Proposal, and can
assure you that our firm would be fully responsive to any and all of the City of Carlsbad's needs.
Please feel free to contact me at (619) 232-6500 should you
have any questions regarding our proposal.
We look forward to hearing from you.
Sincerely,
William F. Waina
Partner
r
STATEMENT OF QUALIFICATIONS AND PROPOSAL
TO SERVE THE SITY OF CARLSBAD
TABLE OF CONTENTS
Section
I. EXECUTIVE SUMMARY
A. Understanding of Work B. Management Issues C. Experience and Resources D. Approach E. Engagement Team F. Summary
11. PROFILE OF OUR SAN DIEGO OFFICE A. Our Personnel B. Our Clientele
C. Our Service Approach D. Our National and International Organization E. Stability
111. GOVERNMENT EXPERIENCE AND QUALIFICATIONS A. Local Governments B. State, County and Local Agencies C. Programs Financed by the Federal Government D. Municipal Securities Offerings E. Educational Programs F. Government Resources G. Professional Recognition
IV. ENGAGEMENT ORGANIZATION AND PERSONNEL
A. Resumes - DH&S Engagement Team
V. WORK PLAN
A. Objective and Scope B. Audit Plan C. Audit Work Program 1. Planning and Control 2. Internal Accounting Control Evaluation
3. Tests of Asset and Liability Accounts
4. Tests of Revenues and Expenditures 5. General Procedures
D. Advanced Audit Techniques
Page
1
7
11
18
28
Section
VI. MANAGEMENT ADVISORY SERVICES
A. Data Processing
B. Cash Management C. Management Effectiveness D. Other MAS Services
VII. PROFESSIONAL FEES
APPENDICES:
A. References B. Affirmative Action Statement
44
46
40
I. EXECUTIVE SUMMARY
EXECUTIVE S UMMARY
We are extremely pleased to submit this proposal to serve the City of Carlsbad by performing a financial and compliance audit of the City's financial reports and the reports of specified agencies for
the period July 1, 1983 to June 30, 1984. Our firm offers a full range of accounting and consulting services which would be most beneficial to the City with its progressive future. We believe the information provided on the following pages strongly substantiates our recommendation that the City award the audit to Deloitte Haskins
&I Sells as the firm best qualified to provide the breadth and quality of service the engagement demands: timely, efficient and personalized service rendered by locally-based professionals with extensive experience in all aspects of governmental accounting and management services. We are the largest accounting and consulting firm in San Diego, with a full range of services, including audit, management consulting, tax, and small business services.
Highlights of our key qualifications follow.
UNDERSTANDING OF WORK
Our financial and compliance audit of the City's financial reports
will be performed with the objective of rendering an opinion as to the fairness of presentation of the statements. The audit will be performed in accordance with generally accepted auditing standards, as included in the American Institute of Certified Public Accountants' (AICPA) Statements on Auditing Standards and the Comptroller General's Standards for Audit of Governmental Organizations, Programs, Activities and Functions ("Yellow Book and will satisfv the Provisions of Federal OMB Circular A-102, Compliance Supplement: guidelines provided in the Municipal Finance Officers Association They will also be in accordance with
TMFOA) Goveinment Accountinq, Auditinq and Financial Reportin (GAAFR) and with rules set by the Government Accounting Standzrds Board (GASB) recently approved by the Financial Accounting Foundation. Our audit scope will include the entities required to be included in the City's financial statements in accordance with
National Council on Governmental Accounting Statement 3.
In addition to our opinion on the financial statements, we will
issue management reports and letters describing our findings with respect to any weaknesses in accounting procedures, internal or data processing controls, administrative and operating matters, and other observations concerning compliance with various pertinent regula- tions. Our approach will be to work in partnership with the City. We will comment on work done exceptionally well and also comment (formally and informally) in a positive and constructive manner on
areas that can be improved. We will strive to develop a close working relationship with the appropriate City staff and officials
so that you can benefit from our objective observations, findings,
and recommendations. As specified in your RFP, we will also audit
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the financial statements of the City's revenue sharing fund activity, the Redevelopment Agency, and the Water Enterprise Fund. We are also prepared to conduct any special reviews requested by the City.
In addition, we will assist the City in once again meeting the
requirements of the MFOA Certificate of Conformance Program. Mike Bresnan, assigned to our proposed engagement team as consulting manager, is a member of the MFOA's Certificate of Conformance Special Review Committee, and has assisted several municipalities, including the Counties of Los Angeles and Orange, in preparing for
their filings for the Certificate. Both counties were granted
certification.
MANAGEMENT ISSUES
It is our understanding that the City of Carlsbad is particularly
interested in identification of management issues as part of the audit process. To a great extent, the need for continued improvement of City management is due to the growth pressures now facing Carlsbad. Growth forecasts show that the Carlsbad general planning area will experience the highest percentage of growth in the region. In fact, between 1980 and 2000 Carlsbad is expected to accommodate an additional 71,400 persons, representing a 198.9% increase.
In addition to population growth, Carlsbad will show significant
industrial and business development. App.roximately 17,000 commercial and industrial acres will be developed and the civilian
employment will increase by 22,000 persons (135%). -.
In order to cope with such development pressures, the City will
require the most efficient management practices and service delivery
operations, increased automation, improved financial planning and cash management, and creative financing of infrastructure needs.
"Infrastructure needs" has had extensive attention in the past two years. It is evident that many public facilities are wearing out, undersized, and overused. These projects may include streets,
sewers, treatment plants, beach erosion, public buildings, public-private ventures, parks etc. In Carlsbad, the infrastructure needs will be particularly critical. Most of the 10,000 acres projected to be developed (1980-2000) are not now served by infra- structure.
Our Firm is extremely interested and involved in helping
governmental agencies to correct the neglected infrastructure projects. We have resources now and are acquiring more which will enable us to assist a City to inventory its capital assets, classify the condition of the assets, program needed improvements, assess cost impact, identify needed additional assets, develop creative financing alternatives, and assist in the follow-through, including construction.
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EXPERIENCE AND RESOURCES
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DH&S currently serves as independent auditors for the following Southern California cities and counties:
Cities
Brentwood Chula Vista
Irvine Orange
Riverside Vernon
Counties
Los Angeles
Orange Riverside
San Bernadino San Diego
We also serve a wide variety of counties, cities, municipal agencies and special districts throughout the country. Our clients include such major municipalities as New York City, Dallas, Miami, the County of Hawaii and New York’s Suffolk County (Long Island). On a local level, in addition to the City of Chula Vista and County of
San Diego, we currently serve the San Diego Transit Corporation, San Diego County Department of Education, San Diego Community College District, Ramona Municipal Water District and Ramona Unified School District. In recent years we have audited public works grants for
the City of San Diego and CETA grants for the County of Imperial.
We have recently provided management advisory services to the County
of San Diego, the County of Los Angeles, the County of Orange, the City of Los Angeles, the City of Irvine, the City of Orange, the San
Diego Association of Governments (SANDAG), the South Bay Unified School District and San Diego Community College District. We also recently performed a cash management analysis engagement for the City of San Diego. Our experience in the cash management area is
particularly strong, and we believe it is an area where we could be of unique value to the City.
As a result of the strength of our governmental practice, DH&S has
become the dominant accounting firm in the area of single audits, an area of increasing interest to governmental entities. We have completed or are currently performing 71 single audits, more than any other accounting firm or agency of any kind. Our single audit
clients include 11 cities and 13 counties, including:
County of San Diego
County of Orange San Joaquin County
City of Bloomington, Minnesota
City of Gaithersburg, Maryland City of Kettering, Ohio City of Stillwater, Oklahoma
Mecklenburg County, North Carolina Pasco County, Florida
Suffolk County, New York
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We believe the experience and reputation earned through our single audit engagements provide clear evidence of our governmental capabilities and resources.
Our extensive experience with the clients mentioned above, and with
other clients in all segments of the economy, have allowed our professionals to become completely qualified to perform the full
scope of services required by the City. The skills and capabilities of each individual are blended together through our team approach and backed up by the resources and accumulated expertise of our San Diego practice office and the entire Firm. DH&S is the largest accounting and consulting firm in San Diego, with a professional staff of over 100 and four departments offering a complete range of
accounting, auditing, tax and consulting services. We are part of an international organization of 26,000 people in 400 offices in 71 countries. There are 100 DH&S offices in the U.S., including nine in California. Among the Firm's resources relevant to the City are our Government Services Group, our Washington, D.C. National Affairs Office and our Federal Government Grants Information Service. These
resources are described in Section 111 of our proposal.
APPROACH
Our approach to the City audits will be, above all, a constructive service approach. Utilizing the thorough and efficient work program documented in Section V, we will perform the required services on a
timely basis with minimum disruption of the City staff's activities. The sophisticated audit techniques we will use include:
Municipal Audit Programs
Audit Sampling Plan
Statistical Techniques for Analytic Review (STAR)
AUDITAPE (a group of computer programs which automatically select computer records according to our statistical sampling
plan)
Mini-Max, which tests for variances from independently computed amounts.
These techniques are discussed in detail in Section V. We will take
full advantage of these sophisticated audit tools to minimize potential exposure to the City, while at the same time limiting the
required amount of detailed transaction testing through the use of statistically valid sampling techniques. We will apply materiality limits developed in accordance with our standard sampling plan, but will apply stricter standards in particularly sensitive areas or where our analytical review procedures suggest a possible problem.
The specific audit procedures to be applied will vary from area to
area, but will include an appropriate combination of confirmations, transaction testing and documentation reviews required to establish
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that financial amounts are properly classified, recorded in the proper fund, and stated at reasonable amounts. These procedures will be supported by our analytic review effort, which will provide an assessment of the reasonableness of particular accounts, both in comparison to the lawful budget and the prior years' results.
Our concentration of effort on significant areas combined with a
sophisticated approach to auditing through a computer system should ensure the quality and efficiency of our audit effort.
ENGAGEMENT TEAM
The quality of service our firm offers is best exemplified by the
management team we have assembled to serve the City. William F. Waina, the San Diego office partner most experienced with governmental and fund accounting clients, will serve as engagement partner, assisted by Debra J. Adams and Carlsbad resident Jeffrey P. Matthews as engagement co-managers. As an indication of our commitment to serving the City, we plan on having Robert Perez, an accountant in our Orange County office, serve as in-charge accountant on our engagement with the City. Bob, who has
significant hands-on government experience, has served on our engagement with the County of Orange for three fiscal years. In addition, Mike Bresnan, a manager in our Orange County office who serves as manager on our audits of the City of Orange, the City of
Irvine and the County of Orange will serve as consulting manager. Mike has also served as supervising manager on our audits of the
City of Vernon, the County of San Bernadino and the County of Riverside, and will be serving as co-manager on our engagements with the County of San Diego and the City of Chula Vista.
In addition to Mike, the advisory group working with Bill, Debbie,
Jeff, and Bob will include Frank Panarisi, who joined our firm last
year after 27 years of public sector administration experience with
the Counties of San Diego and Los Angeles; James L. Williams, our
firm's National Industry Director for Government Services; and James H. Hugar, the partner in our Los Angeles office who serves as supervising partner on our County of Los Angeles and City of Vernon engagements. (Our work with the City of Vernon has made us familiar with the George Thomas software which was recently purchased by the
City of Carlsbad.) This group's experience with governmental clients -- and particularly Southern California governmental clients -- should prove invaluable to the engagement team and to the City.
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SUMMARY
To summarize, we believe we are the firm best qualified to serve the
City because we offer:
A constructive service approach enabling us to perform the full scope of audit and consulting services required in an efficient, timely manner.
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Extensive governmental experience, especially in Southern California.
The resources and capabilities of the largest
An engagement team composed of experienced,
accounting and consulting firm in San Diego.
locally-based professionals with governmental and fund accounting backgrounds
A genuine desire to serve the City of Carlsbad.
We trust the following proposal provides all the information
necessary to verify our belief and convince the selection committee
that DH&S is indeed the City's best choice.
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11. PROFILE OF OUR SAN DIEGO OFFICE
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OUR PERSONNEL
Deloitte Haskins & Sells, the largest public accounting firm in San
Diego, has the capability to offer a complete range of services through four full-service departments: audit, tax, management . advisory services (MAS), and small business services (SBS). The statistics below indicate the strength of each department.
Number of Personnel by Department
MAS SBS Total - - Tax - Audit
Partners 6 4 1 11
Managers and Supervisors 10 5 5 2 22 69 Professional Staff
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22 Totals Ai2 ;LL u u
Administrative and Support -
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Total 124 -
OUR CLIENTELE
One of the best indicators of our office's quality and reputation is
our client roster. Listed below are some of the many San Diego organizations we now serve:
Governmental
County of San Diego City of Chula Vista San Diego Transit Corporation Ramona Municipal Water District
San Diego County Department of Education San Diego Community College District Ramona Unified School District
Hiqh Technology
Cipher Data Products, Inc.
ISSCO (Integrated Software Systems Corporation) Monitor Labs, Inc.
The Signal Companies, Inc.
Wavetek Corporation
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Health Care
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The Salk Institute for Biological Studies Scripps Clinic and Research Foundation
Cecil H. and Ida M. Green Hospital of Scripps Clinic Children's Hospital & Health Center UCSD Medical Center
La Jolla Cancer Research Foundation
Hospital Council of San Diego and Imperial Counties
Hemet Valley Hospital District San Diego Blood Bank
Financial Institutions
Southwest Bancorp La Jolla Bancorp
Bank of Commerce Peninsula Bank United First Mortgage Corporation First Affiliated Securities John Burnham & Company
Service
San Diego Gas & Electric Company
Four Winds Enterprises Cox Broadcasting Corporation Washington Patrol Service
Construction
Southwest Marine, Inc.
Dunphy Construction Company University Mechanical & Engineering Contractors, Inc.
Trepte Construction Company C. E. Wylie Construction Company John R. Selby Construction Company
Retail/Wholesale
Frazee Industries Big Bear Super Markets San Diego Office Supply
Long's Drug Stores ESD Company
Real Estate
Burnham American Properties
University Financial
Warren Properties Village Venture
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Other Organizations
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San Diego Symphony San Diego Urban League
Economic Development Corporation Creditors' Committee of Nucorp Energy, Inc. Regents of the University of California - San Diego
Junior Achievement of San Diego San Diego Wholesale Credit Association
OUR SERVICE APPROACH
Overall, our positive approach to client service centers on constructive service rendered on a timely basis. The efficiency we have developed in our work and our commitment to providing consistent engagement teams allow us to provide each of our clients with experienced, timely and personalized service from knowledgeable professionals familiar with their organization.
Some time ago we adopted a plan to utilize our staff more
effectively and limit overtime, consequently reducing turnover substantially. As a result, we have been able to maintain
consistent audit teams on engagements from year to year, particularly at the senior and manager levels. We believe no other firm in San Diego can demonstrate such consistency.
Our organization is structured around decentralized responsibility
and authority with centralized support and review. Each local partner in charge of a client engagement is responsible for all of our services to that client. He or she determines the scope of work
to be performed for the client, is responsible for all technical decisions, and coordinates the work of all personnel participating in the engagement.
OUR NATIONAL AND INTERNATIONAL ORGANIZATION
The San Diego office of DH&S is part of an international organization of over 26,000 people, with 400 offices in 71 countries. Here in the U.S., we have over 100 offices, nine of which are in California. We serve clients of all sizes in every segment of the economy; a sample of our better-known clients
includes the City of New York, the County of Los Angeles, General Motors, Merrill Lynch, Monsanto, Honeywell, and The New York Times Company.
The personnel in our practice offices are supported by the total
nationwide resources of our firm. These resources include the Technical Research Department of our Executive Office in New York City, our National Affairs Office in Washington, D.C., and our designated industry specialists in virtually all segments of the
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economy. Our Technical Research Department is staffed by more than
60 partners and managers specializing in the technical accounting
and financial aspects of virtually all major regulatory and professional organizations, such as the Office of Management and Budget, the General Accounting Office, and numerous state, regional,
and local regulatory and industry organizations.
The resources and expertise available in such an organization add a
powerful dimension to our local service capability.
STABILITY
The stability of our practice can best be demonstrated by our
consistent growth since our founding in 1895 -- growth that has occurred because of the high quality of services we provide our clients. Stability requires financial strength. Over the years, our firm has maintained a level of profitability sufficient to allow
us to pursue our primary goals: developing increasingly better approaches to rendering client service; attracting and retaining superior professional talent; financing our growth; and meeting our commitments to our profession and the communities in which we practice.
Here in san Diego, our position as San Diego's largest accounting and consulting firm is indicative of the health of our practice.
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111. GOVERNMENT EXPERIENCE AND QUALIFICATIONS
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GOVERNMENT EXPERIENCE AND OUALIFICATIONS~
Throughout California and the U.S., DH&S has maintained a strong
presence in all facets of government service. Locally, as noted in our 'Executive Summary", we serve San Diego Transit Corporation,
Ramona Municipal Water District, Ramona Unified School District, the
San Diego County Department of Education and San Diego Community
College District. We have also, within the past year, been engaged to audit the County of San Diego and the City of Chula Vista. In the recent past we audited six public works grants for the City of San Diego and 29 CETA grants administered by Imperial County.
On the following pages, we discuss our state, national and local experience in a variety of areas relevant to the City of Carlsbad
engagement.
LOCAL GOVERNMENTS
We serve nearly 400 governmental clients nationwide, performing
annual audits of over 300 state and local governmental units. Among
the local governments our nine California offices serve are:
CITIES
Brentwood Chula Vista Irvine Orange Palo Alto
Riverside Vernon
COUNTIES
Los Angeles Monte r ey
Napa Orange Riverside
San Bernardino San Diego
San Joaquin
As you can see, our clients include several significant Southern California local governments.
Outside California we now serve or have served the following in the past five years:
CITIES COUNT1 ES
Charlotte, North Carolina Albany, New York (City and
Cleveland, Ohio County) Dallas, Texas Bucks County, Pennsylvania Dayton, Ohio County of Suffolk, New York
(Long Island)
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CITIES
El Paso, Texas Houston, Texas
Jersey City, New Jersey Milwaukee, Wisconsin Mobile, Alabama New York City, New York
San Antonio, Texas Springfield, Illinois
COUNT I E S
Harris County, Texas
Honolulu, Hawaii (City and
Hudson County, New Jersey Lake County, Oregon Metropolitan Dade County
(Miami) Florida Metropolitan Government of
Nashville and Davidson County, Tennessee Montgomery County, Maryland
County)
The breadth of service we offer is illustrated by our engagements
with New York City and the City of Cleveland. . New York City. We are currently serving as auditors for the City. Previously, we provided special consulting
assistance to the State of New York in its supervision of the accounting, reporting, and financial management changes required of New York City under 1975 state and Federal
legislation. We delineated the generally accepted
accounting principles to be established and followed by the City; supervised a special task force in developing the
general audit scope for the audit of the City of New York
for the 1978 fiscal year, which was the first audit of the City conducted by independent accountants; and assisted
City and state officials in preparing their request for proposal for audit services. . City of Cleveland. Our firm was selected in early 1980 by
the Financial Planning and Supervision Committee of the City of Cleveland to serve as the City's Financial
Supervisor. In this role, we act as staff to the Committee, provide research and a variety of financial and management-related consulting services, and monitor the City's progress toward achieving fiscal integrity.
Our services to the Committee have included the following:
Conducted a constructive review of the City's Financial Plan for 1980-82 to ensure compliance with applicable statutes and to assess its adequacy and probable effectiveness in preparing a balanced budget, paying delinquent debts, restoring construction and bond funds used for other purposes, and eliminating all fiscal emergency conditions.
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Reviewed the City's progress toward implementing an
automated management system, including such aspects as technical requirements and capabilities, management reports, and enterprise fund requirements. We also conducted extensive tests to ensure that the system properly recorded transactions and that its fund structure conformed to generally accepted accounting principles.
Assisted in developing a six-year budget for capital expenditures.
Analyzed the City's cash projections for all funds for a three year period.
Reviewed tax budgets, tax levy ordinances, bond and note
ordinances and appropriation measures to determine their consistency with and effect on the Financial Plan.
assist the City in obtaining long-term financing. Consulted with Lazard, Freres & Co. on their efforts to
Assisted the City in assessing and correcting
significant weaknesses in its financial management procedures.
STATE, COUNTY AND LOCAL AGENCIES
We provide accounting, auditing, and consulting services to over 125 state government departments and agencies. For some, we are helping to ensure their compliance with various federal programs, such as revenue sharing, grants, and contracts. For others, we are developing accounting and control systems for such diverse needs as health cost containment and state lottery operations. For still others, we are the auditors and consultants for their public welfare and health delivery agencies.
A brief listing of some of our clients in this area includes:
California State Department of Finance
California State Department of Transportation Golden Gate Bridge, Highway and Transportation District Los Angeles County Transportation Commission
South Coast Area Transit
Regents of the University of California Michigan State Lottery
Ohio Department of Public Welfare Missouri Department of Social Services
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Commonwealth of Pennsylvania Department of Labor and Industry Arizona Energy Office Colorado Department of Social Services
Georgia State Department of Medical Assistance
The range and diversity of these clients is indicative of our commit-
ment to and expertise in serving governmental agencies.
PROGRAMS FINANCED BY THE FEDERAL GOVERNMENT
On a firmwide basis, we have substantial experience with a variety
of federal grant programs. These have included programs funded through the Departments of Housing and Urban Development, Health and Human Services, Commerce, Labor, Treasury and Transportation, as well
as the Office of Economic Opportunity and the U.S. Civil Service Commission. We have performed numerous audits of individual federal
grants, both as an extension of our annual independent audit of the grantee and on a special engagement basis. We have particularly
strong experience with the following federal programs:
Federal Revenue Sharing
Community Development Block Grants Economic Opportunity Grants Model Cities Grants Economic Development Council Grants Urban Renewal Grants Comprehensive Planning and Assistance Grants
Housing and Urban Development Grants Urban Mass Transit Grants Federal Aviation Agency Grants
Head Start Follow-Through Grants
Comprehensive Employment and Training Act Grants
As we discussed earlier, our San Diego office has had direct
experience with audits of Imperial County's CETA Program and the City of San Diego's public works grants.
With respect to federal grants, we have advised a large number of our governmental and not-for-profit clients as to proper grant management techniques, and have developed comprehensive financial management and control systems for grant-related activities.
Among our special services to government clients is the firm's Federal Government Grants Information Service, designed for local
governmental units, nonprofit organizations, and other groups
eligible to receive federal and private foundation grant funds. At
no cost to its clients, DH&S grants specialists will research available federal and foundation funding programs, provide assistance in reviewing their current grant status, address areas of local interest and need, ascertain eligibility requirements, and assist in determining which grant programs to pursue. DH&S can also provide assistance in preparing and submitting grant application
packages and complete grant management services.
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MUNICIPAL SECURITIES OFFERINGS
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DH&S has extensive experience in assisting governmental clients with
public bond offerings. Several members of the engagement team selected to serve the City have firsthand experience with the
procedures and disclosure requirements of municipal bond offerings including the guidelines set forth in the MFOA publication Disclosure Guidelines for Offerings of Securities by State and Local Governments as revised in June 1979.
Our personnel are kept informed through our Government Industry Group on the status of proposed legislation being considered by the Senate and the House of Representatives as well as proposals being
considered by the Securities and Exchange Commission that may impact municipal securities offerings.
EDUCATIONAL PROGRAMS
Our firm has an extensive and comprehensive continuing education
program covering a wide range of industry and technical areas. Courses related to municipal accounting and auditing include such courses as the following: . Introduction to Accounting and Auditing -- Public Utility Industry . Audits of School Districts
. Basic Concepts of Local Governmental Budgeting . Basic Concepts of Local Governmental Accounting . Basic Concepts of Local Governmental Financial Reporting
In addition to participating in these firm-sponsored seminar and
self-study courses, our professionals regularly attend seminars and conferences on municipal accounting and auditing issues sponsored by
the American Institute of CPAs, the California Society of CPAs and the Municipal Finance Officers Association, among other professional organizations.
GOVERNMENT RESOURCES
Recognizing the expertise required to meet the special needs of
governmental units, DH&S has established a Government Services Group within the firm. The Group, organized on a national basis, is composed of over 500 specialists with exceptional qualifications in the field of governmental accounting. These specialists work with
our local team, bringing the firm's accumulated expertise to our
engagements.
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Our Government Services Group carries out a number of programs to support our practice offices and better serve our clients. resources include a Washington, D.C. governmental service team which
monitors legislative and regulatory developments affecting state and local government and disseminates information of such developments to specialists throughout our firm.
Our government specialists also conduct seminars for various govern- mental groups on such subjects as accounting principles, auditing
standards, regulatory reporting, cash management and computer applications. audit programs for examining different types of state and local entities, and assist offices in tailoring these programs to specific entities. programs to keep our staff technically proficient and aware of the many special requirements of government accounting, auditing and
reporting.
As we mentioned in our "Executive Summary", we also have a unique
resource here in San Diego: Frank Panarisi, formerly assistant chief administrative officer for the County of San Diego. With his years of administration experience, Frank is a valuable resource for our clients as well as our own personnel. In addition, Joan Martin, formerly a director of SANDAG, recently joined our firm, further increasing our strength in the area of government consulting.
The major
These specialists also develop and maintain special
Our governmental specialists also conduct training
PROFESSIONAL RECOGNITION
In addition to representation in the Municipal Finance Officers
Association--including membership on the Certificate of Conformance Review Committee--members of our firm have served on all of the major
governmental committees of the American Institute of CPAs and the National Committee on Governmental Accounting. One of our partners served as chairman of the AICPA committee that wrote Audits of State and Local Government Units, and another was a member of the task force that revised that audit guide. The chairman of our firm, Charles G. Steele, currently serves as vice president of the
Financial Accounting Foundation (FAF) and chairman of its special
committee on the Governmental Accounting Standards Board (GASB). The FAF recently approved the establishment of the GASB, which will consolidate the rules of all government accounting organizations into one body.
In addition, we have been selected to serve the Department of
Treasury, Office of Revenue Sharing. Our primary services to ORS include reviewing financial reports submitted by revenue sharing
recipients for compliance with revenue sharing requirements (e.g.8 independent audits and conformance with generally accepted
accounting principles) and preparing reports on our findings.
In 1977, the Municipal Finance Officers Association (MFOA) published
ing Effective Cash Management in Local
mt in Local Government: A Comprehensive Approach - written by our
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Government Services Group. The handbooks resulted from a special
engagement by the MFOA to develop a program to assist cash managers in local government in implementing more effective cash management
programs.
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IV . ENGAGENENT ORGAN1 ZATION AND PERSONNEL
ENGAGEMENT ORGANIZATION AND PERSONNEL
As we have emphasized throughout our proposal, we have assembled an
engagement team which we believe offers a unique mixture of experi- ence, talent and skill to the City. The team combines members of
our San Diego office with Orange County and Los Angeles personnel
responsible for our government audits for the Cities of Orange and
Irvine and the Counties of Orange and Los Angeles. We have also added, in an advisory role, our firm's National Industry Director
for Government Services. Regarding the structure of the team, our system of quality control ensures that the partner and manager on
each engagement are directly involved with and have personnel responsibility for all work performed during an engagement. An audit "in-charge" -- in this case, Bob Perez -- supervises the day-to-day work of the audit staff. The manager is responsible for overall planning and review. The engagement partner and consulting partners not directly involved with the engagement review all
reports before they are issued.
On the following pages we present the resumes of the key members of
our engagement team.
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WILLIAM F, WAINA, JR.1 CPA
Audit Partner San Diego Office
ROLE IN ENGAGEMENT: Engagement Partner
EXPERIENCE: Twenty-five years of public accounting experience
with Deloitte Haskins & Sells
EXAMPLES OF CLIENTS SERVED: County of San Diego
City of Chula Vista Imperial County (CETA Grants) City of San Diego (Public Works Grants)
Ramona Municipal Water District
San Diego County Community College District San Diego County Department of Education
Ramona Unified School District Scripps Clinic & Research Foundation Logan Heights Family Health Center, Inc. Goodwill Industries
University Industries
SPECIAL EXPERTISE: Extensive involvement in not-for-profit accounting and accounting for government contracts
PROFESSIONAL ACTIVITIES: American Institute of Certified Public Accountants California Society of Certified Public Accountants
Corporate Finance Council
EDUCATIONAL
BACKGROUND: University of California, Los Angeles Bachelor of Science Degree
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DEBRA J. ADAMS, CPA
ROLE IN
ENGAGEMENT:
EXPERIENCE:
EXAMPLES OF CLIENTS SERVED:
SPECIAL
EXPERTISE:
PROFESSIONAL ACTIVITIES:
EDUCATIONAL
BACKGROUND:
Audit Supervisor
San Diego Office
Engagement Co-Manager
Five years of public accounting experience with Deloitte Haskins & Sells
County of San Diego
City of Chula Vista Ramona Municipal Water District Regents of UCSD
La Jolla Cancer Research Foundation
The Salk Institute for Biological Studies San Diego Blood Bank Equitable Life Leasing Corporation John Burnham & Company
Extensive experience with fund and grant accounting, and with special reports to governmental agencies
American Institute of Certified Public Accountants Illinois CPA Society
Eastern Illinois University
Master of Business Administration Degree Bachelor of Science Degree
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JEFFREY P. MATTHEWS, CPA
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Audit Supervisor
San Diego Office
ROLE IN ENGAGEMENT: Engagement Co-Manager
EXPERIENCE: Six years of public accounting experience with
Deloitte Haskins 6 Sells
EXAMPLES OF CLIENTS
SERVED: County of Santa Ana-HUD Redevelopment Agency County of San Bernadino
San Diego Museum of Art
Southwest Bancorp
Wavetek Corporation
Energy Factors, Inc.
Trepte Construction Company
SPECIAL
EXPERTISE: Significant experience with fund accounting
PROFESSIONAL
ACTIVITIES: Carlsbad Rotary
American Institute of Certified Public Accountants California Society of Certified Public Accountants
EDUCATIONAL BACKGROUND: University of Southern California
Master of Business Administration Degree San Diego State University Bachelor of Science Degree
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ROBERT PEREZ
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ROLE IN
ENGAGEMENT:
EXPERIENCE:
EXAMPLES OF CLIENTS
SERVED :
SPECIAL
EXPERTISE:
EDUCATIONAL BACKGROUND:
Audit Staff
Orange County Office
In-Charge Accountant
Over two years of public accounting experience with
Deloitte Haskins & Sells
County of Orange
California State University - Los Angeles Hunt Wesson Foods
Nichols Institute
United Way
Served on County of Orange audit for fiscal years 1982 and 1983; currently serving on 1984 audit.
University of Southern California
Bachelor of Science Degree
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FRANK PANARISI
Regional Government Services Coordinator San Diego Office
ROLE IN ENGAGEMENT:
EXPERIENCE:
EXAMPLES OF CLIENTS SERVED:
SPECIAL
EXPERTISE:
PROFESSIONAL ACTIVITIES:
EDUCATIONAL
BACKGROUND:
Advisory Manager
Prior to joining DH&S in March 1983, served as Assistant Chief Administrative Officer for the County of San Diego. Served for 12 years with the County of
San Diego and 15 years with the County of Los Angeles in a variety of administrative roles having direct involvement in all aspects of County operations.
Serves as consultant on all Western Region government clients, including:
City of San Diego City of Chula Vista City of Henderson (Nevada) County of Los Angeles
County of San Diego County of Orange San Diego Association of Governments (SANDAG)
San Diego Community College District
Governmental operations and management
California Municipal Treasurers Association Municipal Finance Officers Association San Diego Chamber of Commerce - Member, Government
San Diego Rotary United Way - Board of Directors
Big Brothers of San Diego - President
Advisory Council
Occidental College
Bachelor of Arts Degree
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JAMES H. HUGAR, CPA
Audit Partner Los Angeles Office
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ROLE IN
ENGAGEMENT:
EXPERIENCE:
EXAMPLES OF CLIENTS
SERVED :
SPECIAL EXPERTISE:
PROFESSIONAL ACTIVITIES:
EDUCATIONAL
BACKGROUND:
Consulting Partner
Twelve years of public accounting experience with
Deloitte Haskins & Sells
County of Los Angeles City of Vernon
City of Los Angeles - Department of Airports
LOS Angeles County Health Facilities Los Angeles County Transportation Commission
Municipal accounting
American Institute of Certified Public Accountants California Society of Certified Public Accountants Municipal Finance Officers Association Los Angeles Municipal Auditors and Accountants
Association - Member, Board of Advisors
Los Angeles City Council Blue Ribbon Pension Review Committee
Los Angeles Chamber of Commerce - Member, State and Local Government Committee
University of California, Los Angeles Master of Business Administration Degree
Pennsylvania State University Bachelor of Science Degree
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JAMES L. WILLIAMS, CPA
Audit Partner
National Industry Director - Government Services Houston Office
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ROLE IN ENGAGEMENT: Advisory Partner - Special Industry Consultant
EXPERIENCE: Twenty years of public accounting experience with
Deloitte Haskins h Sells
EXAMPLES OF CLIENTS
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SERVED: County of Los Angeles
County of San Bernadino County of Riverside Harris County, Texas City of Houston, Texas Fort Bend County, Texas
Public Utilities Board of Brownsville, Texas
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SPECIAL
EXPERTISE: - Serves as DHhS National Industry Director for Government Services; as such, consults with all offices on technical problems in governmental auditing and reporting. Substantial experience with municipal bond offerings.
PROFESSIONAL ACTIVITIES: American Institute of Certified Public Accountants Texas Society of Certified Public Accountants National Council on Governmental Accounting Municipal Finance Officers Association MFOA Certificate of Conformance Special Review Committee
EDUCATIONAL BACKGROUND: Rice University Bachelor of Arts Degree
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MICHAEL F. BRESNAN, CPA
Audit Manager
Orange County Office
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ROLE IN ENGAGEMENT : Consulting Manager
EXPERIENCE: Eleven years of public accounting experience with
Deloitte Haskins & Sells
EXAMPLES OF CLIENTS SERVED : County of Orange
County of San Bernadino County of Riverside City of Orange
City of Irvine City of Vernon City of Santa Ana Redevelopment Agency Riverside Transit Agency
SPECIAL EXPERTISE: Governmental audits; extensive experience with single audits
PROFESSIONAL ACTIVITIES: American Institute of Certified Public Accountants
California Society of Certified Public Accountants Municipal Finance Officers Association MFOA Certificate of Conformance Special Review
California Society of Municipal Finance Officers
C omm i t t e e
EDUCATIONAL
BACKGROUND: University of Illinois Bachelor of Science Degree
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MARK E. DELANE
MAS Manager
San Diego Office e-
- ROLE IN ENGAGEMENT:
EXPERIENCE:
EXAMPLES OF CLIENTS
SERVED:
SPECIAL
EXPERTISE:
PROFESS1 ONAL
ACTIVITIES:
EDUCATIONAL BACKGROUND:
Manager - EDP Auditing
Nine years of diversified data processing experience in both the public and private sectors.
Manager-in-charge of the San Diego office Management
Advisory Services Department
City of San Diego San Diego Community College District San Diego Department of Education
Frazee Industries
M. H. Golden Company Summa Corporation
Extensive experience in systems evaluation and design
in the government, health care, financial, hospitality and distribution areas.
Data processing specialist
Association for Systems Management Hospital Financial Management Association
University of Southern California Master of Business Administration Degree
University of California, Los Angeles
Bachelor of Arts Degree
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V. WORK PLAN
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WORK PLAN
We take particular pride in our ability to meet cost, schedule, and technical bid requirements. In carrying out numerous engagements of varying sizes and degrees of complexity for all levels of government,
as well as for our clients in the private sector, we have estabished
a record of such performance without sacrificing quality.
The time required to conduct an audit and the related cost are often difficult to estimate because of the uncertainties involved with
respect to problems that may be encountered, the condition of the accounting records, etc. When submitting a proposal such as this one, we make every effort to thoroughly understand the requirements and conditions of the engagement. We estimate the time requirements
carefully and we determine that the personnel to be assigned to the engagement have adequate time avilable to do the work on a timely basis. Because of our recent experience in auditing governmental financial statements, we are particularly confident in our
understanding of the engagement comprehended by this proposal.
We have developed an engagement plan for serving the City which is
comprehensive in scope, scheduled to meet your needs, and which will be implemented economically and efficiently. This plan is based on
our knowledge of California governmental units' systems and proce-
dures, which we have obtained during our examinations of the Cities of Irvine, Orange, and Vernon and of the Counties of Orange, Los
Angeles, San Bernardino, and Riverside. It incorporates programs and techniques that were developed and used successfully on these
examinations.
OBJECTIVE AND SCOPE
We will examine the general purpose financial statements of the City
for the period beginning July 1983 and ending June 30, 1984, and will issue an opinion letter on the City's financial statements and
compliance with applicable legal provisions. The audit will be performed in accordance with generally accepted auditing standards and applicable NCGA statements and cover all funds of the City, including a variety of all fund types. Our examination will enable us to report on such financial statements and will enable us to state whether the combining, individual fund, and account group
financial statements and supporting schedules are stated fairly in all material respects in relation to the general purpose financial
statements taken as a whole. We will also perform all procedures
necessary to enable us to issue a compliance report for Revenue Sharing, and assist in the preparation of the supplementary schedules contained in the City's annual financial report.
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In addition, we will render separate opinions and statements of
compliance on the following entities:
1.
2.. Federal Revenue Sharing 3. Water Enterprise Fund
The Redevelopment Agency of the City of Carlsbad
We will also, by October 5, issue management letters to the City
setting forth our comments with respect to the system of internal accounting controls, administration and operating matters, accoun- ting policies and procedures, EDP operations, and your financial accounting and reporting system. We understand that your areas of
particular interest include internal finance department organization, purchasing systems, accounts payable systems, payroll systems and cash management functions. Our broad objective is to translate the results of our audit into recommendations that will
have maximum benefit to your City in its overall management practices.
AUDIT PLAN
We plan to perform our procedures in two phases: Phase I -
Preliminary review and Phase I1 - Fiscal year-end work.
Phase I - Preliminary review
Phase I can begin up to three months prior to year-end and will include the following procedures:
Meet with City personnel to review accounting, reporting, budgeting, planning, and other areas
Review your current auditors' work papers
Document our evaluation of the City's system of internal
control over grant expenditures and related grant compliance requirements
Prepare drafts of your proposed comprehensive annual financial reports and review those drafts wth City personnel
Perform tests of transactions through an interim date.
During this phase, we will complete our evaluation of the internal
accounting control system in order to determine the appropriate extent to which our audit procedures should be applied. Based on the conclusions reached as to the effectiveness of the City's
internal accounting controls, we will determine the timing and extent of the specific audit procedures to be performed, including
the exact use to be made of statistical sampling methods and computer audit programs. A brief description of our advanced auditing techniques is included in this Section.
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Phase I1 - Fiscal vear-end work
The final phase of our audit work, which will commence during
August, will involve updating and completing our examination of the financial statements and the grant activity and the completion and rendition of our reports. Based on our understanding of the City, we foresee no problem in being able to provide you with a final draft of our audit report by September 28, with the final report, financial statements and supplemental schedules rendered by October
5. We will hold an exit conference with the City staff within 10 working days of the submission of the final report documents.
As a result of the interim work performed during Phase I, the
majority of the accounting and reporting matters will have been identified and resolved. Thus, the completion of the audit will be efficient. The following procedures will be performed as soon after
the closing of the books as is practicable:
Perform analyses and tests of balance sheet accounts
Perform analytic review tests
Perform tests of transactions for the remaining part of the year
Perform such other auditing procedures as will be required
to issue our opinion on the financial statements and notes
Review our comments and conclusions regarding internal
accounting controls with City personnel.
AUDIT WORK PROGRAM
The following audit work program describes the procedures we plan to
follow during the examination of the City's financial statements. This program has been developed from our experience in auditing other governmental entities and, as such, is directed specifically toward California cities.
Planninq and Control
Planning
We will plan the audit \ tilize o r familiarity
with and understanding of California governments so as to ensure optimum effectiveness while maintaining an optimum level of efficiency.
Supervision and Review
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All field work will be directly supervised by individuals who have had prior governmental audit experience. Work will be directed by Debbie Adams and
Jeff Matthews, with the close consultation of Mike Bresnan. All audit work on the engagement will be supervised by Bill Waina, the partner responsible for the engagement. He will be provided technical assistance and support by Jay Hugar, the partner responsible for our audit of the County of Los Angeles. . Audit Programs
Our audit programs will be designed based on the audit
programs we have developed during our other Southern California governmental audits. Each significant
account or function will be covered by these programs.
Internal Accounting Control Evaluation
The second standard of field work under generally accepted auditing standards states:
"There is to be a proper study and evaluation of the
existing internal control as a basis for reliance thereon and for the determination of the resultant extent of tests
to which auditing procedures are to be restricted."
We will use the questionnaire developed in our prior examinations of California counties and cities to assist in documenting Our
evaluation of the City's internal accounting control. In addition to these questionnaires, which survey internal accounting controls in various departments, we plan to document general procedures utilized by the City for collections, payroll, purchase orders, summarizing of transactions, etc.
In addition to the review of internal accounting controls, we will
perform a special review of the controls over the City's data processing system. This review will be performed by individuals who devote the majority of their time to performing reviews in accordance with Statement on Auditing Standards Number 3. This work
will be supervised by Mark Delane, a San Diego-based management advisory services manager, whose resume is included in Section IV of our proposal.
Tests of Asset and Liability Accounts
Set forth below are some of the specific methods we expect to use to test certain of the asset and liability accounts. The primary objectives of such tests are to determine that each asset and liability is recorded properly, appropriately classified, and stated at a reasonable amount.
. Cash
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.. Count cash on hand at year-end to determine that
such cash is properly recorded in the accounts .. Secure direct written confirmation of all balances
from depositories
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.. On a test basis, examine the records of pledged
.. On a test basis check calculations of interest
collateral and test pooled collateral operations
earned on interest-bearing amounts .. On a test basis determine that cash receipts are
deposited intact on a daily basis. . Investments and Related Income
.. Determine that investments are authorized and comply with applicable legal provisions
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.. Determine that investments are properly recorded .. Determine that the income on investments has been
properly computed, accounted for and allocated to appropriate funds .. Determine that investments owned by the funds at any
time during the period under audit but which have been redeemed have been properly accounted for.
Receivables
.. On a test basis examine the original documents supporting the accounts and determine authority therefore .. On a test basis confirm balances due by direct
correspondence with the debtor .. Determine that reasonable allowance was made for
uncollectible items.
Fixed Assets (including leased items) .. Determine and evaluate methods employed in valuation
of fixed assets for accounting purposes .. Determine that accounting records properly reflect
the annual inventory of fixed assets .. Examine vouchers, construction contracts, leases and
other documents reflecting additions to fixed assets
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..
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during the period on a test basis to determine whether such additions are properly recorded in the accounts and property records
Determine that the disposals of fixed assets were authorized and properly recorded in the accounting records. Trace cash collections from such disposals into the record of cash receipts.
Determine that repairs and replacements are
supported by the necessary authorized vouchers and are charged to the proper accounts
Test the computation of depreciation expense for the current year and of accumulated depreciation for the enterprise funds.
Other Assets .. Test balances to determine their reasonableness in
view of the nature of each account.
Accounts Payable .. Test to determine that all significant accounts
payable are recorded as liabilities .. Determine by appropriate tests that obligations
incurred during the period under audit are properly recorded in the accounts and that they are recorded in the proper accounting period.
Other Liabilities .. Determine that liabilities for expenses incurred and
expenditures made but unpaid at the end of the period under audit are properly recorded. .. Examine documents supporting reserves for uncompleted purchase orders and encumbrances to
determine that such reserves are adequate and properly recorded.
Deferred Revenues .. Determine that any amounts collected for a future
year are excluded from revenue of the year under audit and are recorded as deferred credits.
Self-Insurance Liabilities .. Review the City's self-insured medical and workers'
compensation plans
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.. Obtain from the consulting actuary an evaluation of
asserted and unasserted claims pending under such plans .. Determine that the liability for such plans has been
properly recorded. . Pension Liabilities .. Review appropriate instruments governing the City's
pension plan and the latest report from the state of California covering such plan
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.. Determine that the proper amounts have either been
paid or recorded as liabilities for the City's pension contribution for the current year
.. Determine that proper disclosure is made in the
financial statements. . Long-Term Debt and Capital Lease Obligations ..
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.. ..
Compare balances payable with legal authorization
and bond records
Determine that bonds retired during the period under
audit are properly recorded
Examine bond indentures to determine compliance with
debt service and other requirements
Review the documents authorizing leases
Determine that the City's liability under leases is
properly recorded. . Equity Accounts .. Determine that fund balances, retained earnings and contributed capital are separately stated and that changes in these accounts are properly disclosed in the financial statements.
Tests of Revenues and Expenditures
We will test each significant type of revenue and expenditure of the
City to determine that it is:
Recorded properly Properly classified as to source Stated at a reasonable amount.
In addition, we will examine the annual budget approved by the City
Council and compare budgeted amounts to recorded revenues and expenditures.
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Revenues
Revenues will be tested in one of three ways: . Confirmation and/or Other Supporting Documentation Numeric Sampling of Internal Documents . Revenue Days Methods . Analytical Review
We will use the appropriate method, or combination of methods, to test each of the significant sources of revenue of the City. Set forth below are some of the specific methods we expect to use to test certain of the revenue categories. . Sales taxes .. Confirm with state .. Analytic review of amounts received for reasonableness . Licenses and Permits .. Obtain a schedule of approved rates of all
.. Test rates charged against ordinances or properly
significant licenses and permits
approved schedules .. Trace collections into the record of cash receipts. . Fines and Forfeitures .. Review the police department's traffic violation
policies and procedures and test control of traffic tickets issued .. Review dockets or other original court records for
fines and fees collected .. Test collections of fines, forfeitures and other court fees .. Trace collections into the cash receipts record. . Aid from Other Governmental Agencies .. Confirm directly with other governmental units the
.. Trace receipts into the record of cash receipts
amounts collected and paid to the City
.. Determine that such amounts have been or are being
used for authorized purposes.
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. Charges for Current Services .. Review authorizations for services and rates .. Test amounts charged and billings made .. Trace collections into the City Treasurer's record
of cash receipts . Sales of Fixed Assets .. Review authorizations for sales .. Examine fixed asset records to determine the asset has been properly removed .. Trace cash receipts into the record of cash receipts.
Expenditures
The methods we will use to test expenditures will vary depending
upon the type of expenditures. Several examples of the types of expenditures and our audit approach related to each are discussed below.
c . Payrolls and Related Costs
We will select from recorded amounts and examine
employee status and time records for propriety of distribution, approval and other indications of validity. We will also test the computation of gross and net pay and examine the related paid warrant for apparent propriety. . Purchases of Materials and Supplies
We will select from recorded amounts and examine
supporting documents for propriety of account distribution and for approval or other independent
indications of validity. We will examine the related paid warrants for apparent propriety.
General Procedures . Minutes:
We will review the minutes of the meetings of the City
Council for matters of audit significance. We will test accounting records for compliance with all significant matters and for proper authorization by the Council for all transactions for which such authorization is
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required. The period covered by such review will
include the period covered by our audit as well as such preceding and succeeding periods as we consider necessary. . Statutory Review:
We will review the ordinances of the City of Carlsbad,
the County of San Diego, the statutes of the State of California and the laws of the United States of America
to the extent we consider necessary to provide a basis for testing for compliance of financial transactions with such ordinances, statutes and laws. . Analytic Review:
We will review the amounts shown in the financial
statements of the various funds under audit for relative comparability with similar amounts shown in the
financial statements for prior years and with applicable budgets. In making this review, due consideration will be given to events or circumstances which should have caused significant changes from prior years. . Adjusting Journal Entries:
We will accumulate proposed adjustments, coordinate with the Finance Director as to any material adjustments, and evaluate the effects of accumulated immaterial
adjustments on operations and financial position of the funds . . Subsequent Events:
We will perform certain procedures to determine whether
any events occuring subsequent to the balance sheet date would require adjustment of the financial statements or disclosure therein. Procedures will be performed through the date of our opinion and will include: . Reviewing available financial information for periods subsequent to year-end . Making inquiries of appropriate officials . Reviewing ordinances adopted and minutes of City
. Reviewing the effects of any significant happenings
Council meetings subsequent to the balance sheet date
since the balance sheet date. . Reports:
We will advise you of our suggestions concerning the
preparation of your comprehensive annual financial
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report. As indicated previously, this task will be staited in the early stages of the engagement. Particular emphasis will be placed on: . Conformity with generally accepted accounting principles . Statement format and mode of presentation of
financial data . Adequacy of disclosures . Presentation of budget amounts and comparisons . Financial accountability of officers and employees
. Effects of current developments in accounting and
financial reporting on the financial statements. . Comment Letter:
As is our practice, we will issue reports containing our
comments relating to internal accounting controls, accounting procedures and other matters noted in connection with each engagement for the examination of
financial statements. Such reports will not be based on
a detailed review of the City's system of internal accounting control, but rather to determine the nature, timing and extent of auditing procedures that are necessary for expressing an opinion on the financial statements. We will review drafts of these reports with City personnel prior to their issuance.
ADVANCED AUDIT TECHNIQUES
During the last decade, DHtS has invested heavily in the research and development of more efficient auditing methods. As a result of
these efforts we have become recognized as the accounting profession's leader in the development of advanced auditing techniques and procedures. Some have been adopted by the profession; others are still unique to DH&S. Our experiences from succeeding other auditors on major engagements have repeatedly demonstrated that our advanced techniques provide us with a unique ability to perform highly efficient audits. Our techniques and
procedures include: . Computer audit programs which speed selection and
. A pinpoint approach to evaluation of internal accounting
evaluation of sample items
control
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Advanced statistical techniques which incorporate
predetermined reliability and precision levels
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A constructive approach to auditing with emphasis on communication with appropriate levels of management.
All of the above techniques and procedures are directed to
optimizing audit efficiency while maintaining the highest quality standards. We are continually refining and advancing our technology in response to the increasing complexity of our clients' information
systems, specific client needs, and the cost of performing audits.
These techniques and procedures will be used in our examination of
your financial statements. On the following pages we describe these techniques, all of which comprise AuditSCOPE, our unified, comprehensive audit system.
AuditSCOPE as applicable to government entities encompasses the following specific techniques:
. Municipal Audit Programs . Audit Sampling Plan
AUDITAPE
Statistical Techniques for Analytic Review (STAR) . Computer Support . Mini-Max . Evaluating internal controls - ControlSET
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. Other Quality Control Procedures
Municipal Audit Programs
In making our examinations of municipalities, we use auditing
techniques designed to achieve audit economy and efficiency while maintaining strict quality controls.
Municipal Audit Programs, representing a unified approach to
auditing government entities, are designed to meet the specialized needs of our municipal clients. The programs specify the audit procedures and detailed tests we need to make, and specifically correlate our internal control evaluation with our audit tests.
Audit Samplinq Plan
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Our Audit Sampling Plan is a method of obtaining efficient,
mathematically valid samples from accounting records in order to reduce the amount of time required for detail testing. We use the plan extensively throughout our practice -- as a supplement to, and not a replacement for, sound professional judgment.
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The Audit Sampling Plan is based on predetermined reliability and precision levels. The sample size is directly related to both the materiality of individual items and the effectiveness
of the internal control systems.
In applying our Audit Sampling Plan to a municipality's
accounting records, we first consider the detailed evaluation of internal accounting controls to determine the extent of testing required. Documents and related records supporting the individual items selected by sampling are examined using traditional auditing methods. Monetary and procedural deficiencies are then statistically computed and evaluated. This approach allows the auditors to determine the appropriate testing required for each area; to select a small, statistically valid sample from the accounting records; and to evaluate the results quantitatively.
AUDITAPE
DH&S was the first accounting firm to develop generalized
computer programs for auditing through a computer. This innovative and unique group of computer programs is known as the AUDITAPE System.
The AUDITAPE System incorporates our statistical sampling plan
and, when applied to a set of computer records, will automatically select records to be tested. In addition,
AUDITAPE develops independent counts and dollar totals from computer files which can be compared to control totals. This
procedure eliminates the old-fashioned procedure of adding
columns of numbers in computer printouts and permits our professional personnel to pursue more constructive audit tasks.
AUDITAPE provides us with an efficient means of using a computer to perform audit functions. While our approach and considerations are conceptually the same whether the audit is
performed manually or through the use of AUDITAPE, the use of computer audit software becomes a practical necessity when we undertake an audit of accounts maintained on a data processing system, as will be the case with the City.
The AUDITAPE System has been designed to be used on our clients'
computer systems and can be used on the City's system. To the extent time is available, at whatever hour, we are prepared to apply AUDITAPE to your computer system.
We are continually improving this system to maintain pace with improvements in data processing technology, enabling our people
to reduce the time otherwise required for audit testing. They can then devote their efforts to applying a clear, creative, and constructive approach in auditing.
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Statistical Techniques for Analytic Review (STAR)
In addition to testing supporting documents and details of the
accounting records, our auditors also perform an overall evaluation of account balances and their interrelation with each other. This analytic review is designed to identify fluctuations in financial statement accounts that appear to be
unusual in relation to expected results, past performance, "normal" relationships and other factors.
We have developed an advanced technique for performing analytic review that includes the use of multiple-regression analysis. This mathematical technique statistically determines the historical relationships among the financial data in periodic
financial statements and the relationship between financial statement data and non-accounting variables. Any results that
fall outside of the specified statistical parameters are isolated for further testing and evaluation.
Computerized regression-analysis programs permit the auditors to
specify the same statistical parameters used in audit sampling.
This feature allows them to achieve the same degree of
reliability in the overall review as in the detail testing.
The advantages of this method of performing the analytic review
function are that auditors are able to quantify the results of
this test statistically and to achieve a proper combination of statistical auditing techniques and traditional accounting judgment .
Computer Support
We have developed computer timesharing programs that can be used
in support of our audit examinations. These programs are ready to use and operate on the General Electric timesharing system with its multinational communications network, The programs include :
FORECAST - A financial forecasting and reporting system. These
programs are designed to assist decision makers and financial analysts with financial planning by allowing them to make "what
if ...I assumptions regarding financial operations and receive immediate results. FORECAST was designed for use by management
and allows financial management to develop and handle their own applications.
INTEREST - A program for computing the time value of money.
This program solves problems such as determining the effective interest rate on loan contracts, calculating the present value of future lease commitments and determining the effective rate
of return on an investment.
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LEASE - A program designed to handle the complex computations
for operating and capital leases required by FASB Statement No.
13, "Accounting for Leases." The program also provides the required report disclosure information.
PLUSPLAN - A financial modeling and consolidation system
designed by DH&S to operate on an IBM or IBM-compatible personal computer. PlusPlan incorporates the most successful features of
other computer systems developed by DH&S and adds the microcomputer's advantages of flexibility and cost-effectiveness. The financial information that can be generated includes projected financial statements; cash flow projections; budgets; inventory, production and other volume projections; variance analyses and custom reports; and consolidated financial statements. The user can base his projections on factors of his own choosing such as interest
rates, price indices and growth trends. Built-in accounting controls, security features, and flexible reporting make this package unique from others on the market.
Mini-Max
A well-known management concept is that of "management by
exception" in which attention is given only to events or results that vary from a predetermined norm. In auditing revenues of a
governmental entity, detailed testing is not necessary if a particular revenue or account balance can be computed independently.
The use of mini-max combines the management by exception theory
with the independent calculation technique. Under mini-max, we
would test only the variance from an independently computed
amount.
Evaluating Internal Controls - ControlSET
The amount of audit testing that our accountants need to perform
is directly affected by their evaluation of internal controls. Areas having good controls receive a minimum of testing, while
any areas that have weak controls are tested more extensively. As a result of a major research study on the evaluation of internal controls, we have developed an advanced system, called ControlSET, for evaluating internal accounting controls. Our system (a significant improvement over traditional approaches) focuses directly on the prevention and detection of material errors and irregularities in financial statements. It is applied to each significant class of transactions and related
assets involved in an audit. In carrying out our approach, we perform the four steps outlined below: . Identify the types of errors and irregularities that could occur
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Determine the accounting control procedures that should
Determine whether the necessary control procedures are
Evaluate any weaknesses and determine the nature,
These steps allow our auditors to pinpoint areas having weak
controls and to extend testing to those areas. In this way, the evaluation of internal control is more exact, and the testing of
accounting records becomes more targeted and efficient.
Our systematic approach to evaluating and testing internal controls is based on using internal control questionnaires (to
review the accounting duties and procedures within the municipality, and to help identify weaknesses in the internal control evaluation to determine the extent of testing required.
prevent or detect such errors and irregularities
prescribed and are being followed satisfactorily
timing, and extent of our audit procedures.
Other Quality Control Procedures
AuditSCOPE is supplemented by a number of other control procedures.
For example, during the audit we complete a number of comprehensive questionnaires. These include: .. Audit planning questionnaire .. Special audit risk questionnaire
..Audit supervision and review questionnaire
..Audit program for the identification and evaluation of litigation, claims and assessments
..Audit program for subsequent events
..Questionnaire concerning compliance with accounting pronouncements (including supplemental questionnaires on
specific areas)
These procedures allow us to provide clients with the most valuable
and efficient service.
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VI. WAGEMENT ADVISORY SERVICES
NANAGEMENT ADVISORY SERVICES
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Our San Diego office has a locally-based, full-service management
advisory staff of 10 consultants, including two with significant governmental experience: Frank Panarisi, to whom we referred
earlier, and Joan Martin, a former director of SANDAG. We are one of the few San Diego firms with a locally-based MAS complement: most other firms are required to call on personnel located outside San Diego County to provide consulting assistance to their clients. As consultants, we view ourselves as business problem solvers, providing our clients with objective management advice and technical assistance. Our role is to transfer our knowledge and experience to client personnel. To accomplish this, we involve client personnel in the projects we perform as much as possible, depending on their availability and the nature of the project. This team approach
allows us to provide high quality service in a cost-effective manner.
Our capabilities in the areas outlined in this section are evidence
of our ability to provide quality consulting services on a local basis.
DATA PROCESSING
Our local consultants have performed a variety of consulting engagements related to various data processing topics. We have significant expertise in the design, evaluation and analysis of effective management information systems, accounting systems and cost-control procedures. Our consultants have developed long-range total automation designs for clients and prepared RFPs for hardware and software. We have also had recent extensive experience in the selection and instalation of hardware and software systems and the analysis of internal controls in computer-based accounting systems.
In addition, we have performed long-range planning studies for a
wide range of clients. We are prepared to address the various data processing needs of a municipality, including finance, management reporting, fire, police, utilities, purchasing, personnel, vehicle maintenance, and planning.
CASH MANAGEMENT
We have developed a special program called REACT (Review, Evaluation
and Analysis of Cash Management Techniques) to help both public and private sector clients assess the strengths and weaknesses of their cash management efforts. By interviewing key client managers and analyzing existing practices, we are able to render a report suggesting specific actions that, if taken, will result in improved cash management efforts. Clients we have worked with, including the City of San Diego, have found this process results-oriented, practical and workable.
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MANAGEMENT EFFECTIVENESS
We have found that clients are increasingly concerned with the topic
of management effectiveness. In particular, we have noticed that public sector clients are interested in applying private sector methods to develop a more efficient management style. We have worked with governmental agencies to assist in establishing this public-private combination concept and have met with considerable
success. We assisted the Seattle, Washington School District in a roject of this nature and identified potential savings in excess of P 5 million. Subsequently, the actual savings exceeded $7 million, and the district publicized the study and its results throughout its area of service. This project shows that we are results-oriented when performing consulting engagements, and continually look for cost savings when working with our clients.
OTHER MAS SERVICES
Our MAS group also has the capability to provide services in several
other management areas.
The general areas we offer assistance with follow. . HUMAN RESOURCE PLANNING . ORGANIZATIONAL PLANNING - structure, position description, and
. GENERAL ACCOUNTING SYSTEMS - charts of accounts, payroll systems, accounts payable and receivable, cash controls, property records
and related matters . MANAGEMENT REPORTING - report structure, integration of financial and operating information, and methods of presentation . FINANCIAL PLANNING AND CONTROL - working capital analysis,
return-on-investments analysis, and capital asset consideration . COST AND PROFITABILITY ANALYSIS - analyses and systems for
evaluation of profitability of products, customer classes, pricing strategies, etc.
executive compensation
integrated with data processing, work loan control
manuals
. WAGE AND SALARY ADMINISTRATION - including job evaluation and
. OFFICE AND PAPERWORK METHODS - procedural analysis, work flow
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VII. PROFESSIONAL FEES
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PROFESSIONAL FEES
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Our professional fees will be based on the actual time required to perform our examinations at hourly rates related to the experience
levels of the professionals serving on the engagement.
Our efficiency and commitment to serving the City of Carlsbad allow
us to propose a maximum fee of $9,000 to perform the required work for the period beginning July 1, 1983 and ending June 30, 1984. We have found that a longer term contract is beneficial to our
governmental clients in assuring continuing service by personnel knowledgeable of their operations. In addition, it minimizes the
disruption of your staff caused by bringing the auditors "up to speed". For these reasons, we suggest a three year contract, with the initial year fee quoted above to be adjusted in future years only for changes in the cost of living index for San Diego County, and for changes in the scope of work required.
In addition, to demonstrate our interest in serving and developing a
relationship with the City, we will hold, at no cost to the City, a microcomputer training seminar for 10 City personnel. The seminar will follow the program outlined in the attached brochure.
Your RFP requests hourly rates for each staff level if the City were to authorize an expansion of scope for the engagement. We have selected an experienced and qualified team of personnel to serve on your engagement. Our hourly rates for each staff level will be as follows:
Levels of Skill Hourly Rate
Partner $70
Manager 53
Senior 31
Staff 16
We have made the decision to base our fee for services on substantially lower than standard rates because of our firm's strong desire to serve the City of Carlsbad.
The most valuable asset we have is our reputation as a quality professional firm. We will never compromise the quality of our work in order to complete a job within the number of hours estimated. Our estimates are carefully prepared and we, of course, will stand behind them. You can be sure that we will do as much work as is necessary in our professional judgment to determine that our reports are well documented and responsive to your needs.
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In the event there are significant changes in the activities of the City that would increase the scope of our services indicated in this proposal, we will promptly discuss them with you and provide you
with an estimate of the effect of such changes.
Our fees for management consulting services are generally priced on
a project basis, with a fixed fee being agreed upon in advance of our beginning the project. While we do not charge for our services
on an hourly basis, the general ranges in which our management consultants' hourly rates fall are as follows:
Level Hourly Rate
Partner Manager
Staff Consultants
$100 - $150 75 - 100
50 - 75
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APPENDICES
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PEFERENCES
APPENDIX A
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We believe the best evidence of the quality of our services is the
satisfaction of our clients. We provide below the names of clients
you may contact regarding our work.
All of the engagements indicated are audit clients.
Period
(Years Served)
CITY OF IRVINE
Mr. Jeffrey Niven
Manager of Fiscal Operations 17200 Jamboree Road
Irvine, California 92713 (714) 660-3620
CITY OF ORANGE
Mr. Ted Schoettger
Director of Finance 300 E. Chapman Avenue
Orange, California 92666 (714) 532-0305
COUNTY OF ORANGE
Mr. Victor A. Heim
Auditor-Controller c/o Procurement Division 1300 south Grand Santa Ana, California 92705 (714) 834-5736
COUNTY OF LOS ANGELES
Mr. Mark H. Bloodgood
Auditor-Controller 525 Hall of Administration Los Angeles, California 90012 (213) 974-8301
1983 - Present
1983 - Present
1982 - Present
1978 - Present
- 48 -
/-
A
COUNTY OF RIVERSIDE
Mr. Howard D. Stephens
Auditor-Controller 4080 Lemon Street
Riverside, California 92501
(714) 787-2975
COUNTY OF SAN BERNADINO
Mr. Errol S. Mackzum
Auditor/Controller - Recorder
175 W. 5th Street
San Bernardino, California 92415
(714) 383-2320
Period
(Years Served)
1979 - Present
1979 - Present
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_-
APPENDIX B
AFFIRMATIVE ACTIO N,
The San Diego office of Deloitte Haskins & Sells is in conformity
with our firm's policy for affirmative action for equal employment
opportunity. A copy of our firm's Statement of Policy follows.
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I Ohminotion of ?dky
0 We *rll prwi& 8 copy of tha policy statement to each rKrUitinQ Source so that they under.
Rand our commitment 8nd our desire for appropriate referds These sources will include
~llegcr where we racruit ond profasioml fmt we may retain to mist us in Our search for
talent.
0 We shall Continue to use intern81 reans of communication-such 8s the DHIS Nrwkrtrr, OMS Reports 01 similar publtU1ions-lo glue further CxDreSsion to our br-d policy and
to kr! with rpcctftc points of aDpli'RtiDn that have timely figniftumct
w
c
Deloitte Haskins .Sells
To Partnm and Employees of Dcloille Haskirls & stir and Othcc Interasled Persons
AFFIRMATIVE ACTION FOR EQUAL EMPLOYMENT OPPORfbNlTY-
A STATEMENT OF POLlCy
OrganiZatiOnal progress in the accounting pro!mion. as 10 any other profewon, is more heavily
dependent gn people than it is on any cther resource Thus, just as the Clients we serve are dl-
Mne<OrporationS, nonprofit orgdnirations, individuals end governments-so also are the people
*seek tn prmide the quality of servce exptcted by ltN3e Clients.
Sine a fun&mntal objective of Deloitie Haskitis & %Its is to render excellmt service to the
public rnd to the financial Community, we believe the vigorous rccruitment and dwelopmenr of
the most talented individuals we c2n fiqd is of paramount importance to Our Continuing vitality
and growth. The policy ut ?he firm is to Kek and employ men and women of skill. integrity arid
enthusiasm rnd to provide them with the nteans to dmelop professionally and persona!ly. wi:h-
at rcgard 10 race. color, reiigian, sex. age, natinnal Origin, irrelwanr handicap. or v, =*eran srarus
To enmre that wc maintain a rich diversity of talent, our commitment transcends recruitment
and reide in a program of affirmalive action for eQual employment OpDortunitv Tn!s IS a
multifaceted program expressive of the firm's Overal! Cmnloyrnrnt policv. it is implrmcn~Pd
at each operating location.
The firm also recognizes an obligation to provide present employee!$ an environmcr:t which will
marrage their personal and professional development and enhance their personal dignlrv To
*is mid. it is our policy to pursue and adop! personnel p31icies which make sound business wr?lc and reflect up-to-date management techqiques in keeping with the highes; 1radit:onf of
businccr ethics.
If our philosophical approach to equal opportunity is to have full effect. it KCms essential to
miterate and reaffirm our policy reguiarly and. moreover. to formalize it in writing Therefore. we are articulating in this document a broad, firmwide policv for affirmative action We should
point out that our policy IS by no means new-it has been exoressed before many tines and in a
mriety of ways. The function of this document is to restate the policy succinctly and compre-
hensively, thereby providing a continuing guide for action throuqhout the tirm.
The spirit of the hloitte Haskins & 911s program of affirmative action for equal employment
opportunity is achieved through an ongoing commitment to brood areas of development. These
uws 8nd Our commitfnenl to each rre stated below.
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Mmwment Guidrnco
0 We shall provide. at the Em iilivc Ollice level, overall direction rnd support to our program
by a management reD!esenta!ive wtwIi.n Iwn appointed firmwide Affirmativt Actcon officer
. fhis individual IS responsilde fur iiioiiitor iny complidnce with federal rcgulatiom, guiding and
@valuating practice ottice proardmb. nrrd rccommending firmwide improvements in affirmative
action.
practice otfice and shall ensure the eflicacy of the local office program by delgnatlng a man-
agement represen:otive tu serve as Equal Employment Opportunity Coordinator
0 The Partner in Charge IS reSponsible ltr d:rCClion 8nd rcvicw of the program in his or her
Loa1 Anion Ckns
0 A formal written olan of 6ffirmative actcon IS prepared at the practice offms and ai
Executive Office Eacb plan incorporates the policies set forth herein. and also soeclfies
the actions to be taken by the office to fulfill the spirit of firm policy.
MM8pmOnt Communication
0 Firm management provlda, at least annually, the opoortunitv for each practice office to ore-
parea report of itsaffirmativeactionefforts Thisprocessof selfevaluation perwits the mutual
exchange of ideas between Executive Office and each Partner in Charge concerning program
Kcomplishments or recommended changes
hnonrul Dmmlopmont
0 Throughout the firm there IS a nondiscriminatory opportunitv to prcqrcss to partnership and
direc torship.
0 All penonnel policies includingcomgensation, benefits and transfers rre administered without
mrd to we. Creed, color, national origin, age, sex, irrelevant handicap. or veteran status
0 The firm encourrges acd oromotes the nondiscriminatory participation of all employees in
tirm-sporaored social, recreational. and educational activities
Our commitment to affir3ative action IS evident throughout the firm by practice office partici-
wtion in outreach programs which involve personnel in meaningful activitia supportive of
minority groups and women. Members of our management team at all locations are cspeclallv
oncoungtd to participate in public service activities that contribute to the social and economic
odvancement of individuais from such groups.
This document contains but the broad outline of our commitment to provide the equal employ-
ment opportunity which is inherently demanded in our system of free enterDrise. Our basic ob-
Mtives having been defined. we will continue to refine the direction of our 8cti0n programs
in rhe months rnd years ahead. As additional perspective is wined from progras toward our
-1. this policy will be reviewed and restated as necessary to rid us in the successful accom.
glishmnt of Our task.
CITY OF
CARLS -- __ -
CALIFORNIA
CARLSBAD TRXRTHLON - 1984
COMPREHENSIVE ANNUAl
FINANCIAL REPORT
JUNE 30, 1984
C I TY OF CARLSBAD
CAL I FORN I A
Comprehensive Annua I Financial Report
June 30, 1984
(Prepared by the Finance Department)
CITY OF CARLSBAD
~~ - -
Comprehensive Annual Financial Report
Year Ended &ne 30, 1984
TABLE OF CONTENTS
Page
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INTRODUCTORY SECTION:
Table of Contents
Letter of Transmittal
Certificate of Conformance
List of City Officials
Organization Chart
FINANCIAL SECTION:
Auditors' Opinion
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined Balance Sheet - All Fund Types
and Account Groups
Combined Statement of Revenues,
Expenditures, and Changes in Fund
Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and
Actual - All Governmental Fund Types
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings - All
Proprietary Fund Types
Combined Statement of Changes in Financial
Position - All Proprietary Fund Types
Notes to Combined Financial Statements
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I CITY OF CARLSBAD
___ -~ TABLE-OF CCRJTENTS, Continued
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SUPPLEMENTAL DATA:
Governmental Funds:
General Fund:
Schedule of Revenues
Schedule of Expenditures
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44
Special Revenue Funds:
Combining Balance Sheet 45
Combining Statement of Revenues, Expenditures, 47
and Changes in Fund Balances
Statement of Revenues, Expenditures and 49
Changes in Fund Balances - Budget and
Actual
Debt Sen ice Funds:
Combining Balance Sheet
Combining Statement of Revenues,
Expenditures, and Changes in
Fund Balances
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and
Actual
Capital Projects:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and
Actual
59
61
63
67
69
71
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CITY OF CARLSBAD I
- TABLE OF CONTENTS, Continued
Page
Proprietary Funds:
Enterprise Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenses, and Changes in Retained Earnings
Combining Statement of Changes in Financial Position
Internal Sen ice Funds:
Combining Ralance Sheet
Combining Statement of Revenues,
Expenses, and Changes in Retained Earnings
Combining Statement of Changes in Financial Position
Agency Funds:
Combining Statement of Changes in
Assets and Liabilities
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STATISTICAL SECTION:
General Government Expenditures by Function
Last Ten Fiscal Years
General Revenues by Source, Last Ten Fiscal Years
Ratio of General Bonded Debt to Assessed Valuation and
Net Bonded Debt per Capita, Last Ten Fiscal Years
Computation of Legal Debt Margin
Schedule of Direct and Overlapping Bonded Debt
Ratio of Annual Debt Service for General Bonded Debt to Total General Expenditures, Last Ten Fiscal Years
Revenue Bond Coverage, Last Ten Fiscal Years
Demog r ap h ic S t at is t ic s
Schedule of Assessed Valuation, Last Ten Fiscal Years
Construction and Business Activity, Last Ten Fiscal Years
Miscellaneous Statistical Inf ormation
Schedule of Principal Employers
iv
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1200 ELM AVENUE TELEPHONE 1 CARLSBAD, CA 92008-1989 (61 9) 438-5628
___. .
FINANCE DEPARTMENT
November 20, 1984
Honorable Mayor, City Council,
and City Manager CITY OF CARLSBAD Carlsbad, California
We are pleased to present the 1983-84 Annual Financial Report of
the City of Carlsbad to the City Council and the City Manager. This report, in compliance with the National Council on Governmental Accounting (NCGA) statement 83 "Defining the Governmental Reporting Entity", includes financial statements of the City, the Housing Authority of the City of Carlsbad, the Parking and Building Authorities of the City of Carlsbad and the Carlsbad Redevelopment Agency. This report also includes the opinion of our independent certified public accountants, Deloitte Haskins and Sells.
In 1981-82 the Finance Department continued its effort to revise
prior reporting practices to conform with the standards set by
the National Council on Governmental Accounting (NCGA). This
effort met with success in early 1982 when the California Society of Municipal Finance Officers (CSMFO) awarded Carlsbad their
Certificate of Merit for reporting excellence for the 1980-81
Annual Financial Report. Subsequently, the CSMFO has awarded
Carlsbad the award for outstanding financial reporting for the
City's 1981-82 financial report. By complying with the standards
set by the NCGA and CSMFO, the City's annual report is a more
useful document, both internally and externally. The format of
the report is designed to fairly set forth the financial position and results of operation of the City as measured by the financial activity within the various fund types.
Accounting System and Budgetary Control
There have been no major changes in the City's basic accounting system for 1983-84. The City continues to operate on a modified
accrual basis for all governmental type funds. This means that revenues are recorded when received in cash unless susceptible to accrual. Revenues that are accrued must be both measurable and collectible within the period or soon enough after the end of the
period to pay liabilities of the period. Expenditures, other
than interest on long term debt, are recorded when liabilities
are incurred.
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The proprietary fund types (the water enterprise, sewer
enterprise and the internal service funds) utilize the accrual
method of accounting. Revenues and expenses are recorded when
e a r ne danal n cu r r e 6, res-pe ctl-ue i y .
Internal controls exist within the accounting system to ensure
safety of assets from misappropriation, unauthorized use or
disposition, and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based on the cost/benefit of the
controls imposed. The cost of a control should not be excessive
in relation to its benefit as viewed by City management. The
internal controls in existence within the City's system are
sufficient to ensure in all material aspects both the safety of
the City's assets and the accuracy of the financial record
keeping system. The Finance Department's internal auditor has
conducted several reviews of internal controls on cash, fee
collections, payments for services and fixed assets to verify and
improve our existing control procedures.
Budgetary control is maintained through monthly reports on all
revenue and expenditure accounts as well as special reports
summarizing the financial position of the City. The City Council
has the authority to control the budget through adoption of a
formal budget at the beginning of each year and by amending the
budget as necessary through the year. Expenditures cannot exceed
budgeted figures. All appropriations expire at year .end unless
specifically carried into the new fiscal year by Council action.
General Governmental Functions
The general government function is supported by revenues received
and recorded in the general fund, special revenue funds, debt service funds, and capital project funds. In 1983-84, revenue in
all qovernmental funds totaled $24.1 million. This represents an increase of about $5.8 million or 31.8% over
shown below: City of Carlsbad
Governmental Fund Types Revenues 1983-84
1982-83 1983-84 Revenue
Revenue
(In $1 000) n&- Revenue Source
Taxes Licenses & Permits 771
Intergovernmental Revenue 2,551
Charges for Service 2,452 Fines & Forfeits 231
Interest Income 1,397
Miscellaenous
Revenue 179
TOTAL REVENUE 'TiqYz
(In $1 000) ,512.644
2;452
1,778
4,748 256
1 , 528
726 $2qm
% of
Total
52.4%
10.1
7.4
19.7 1.1
6.3
3.0
100.0%
1982-83 revenue as
1983-84
1982-83
over (under
$1,911
1 , 681
(773)
2,296 25
131
547 $m
%
Change
17.8%
218.0
(30.3)
93.6 10.8
8.6
305.6
31.8
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Revenue from taxes in 1983-84 increased by almost $2 million or
17.8% over 1982-83. Property tax revenue was up by almost
$390,000 or 9%; sales tax revenue increased by $916,000 or
-- s 1 igh-t-il y more -than 2 3% o ve r la st ye ax j and- transieat---escu piwe-y--
taxes were up by about $210,000 or 26%. Other tax revenues
followed the same trends seen in these mafor sources. The strong
improvement in tax collections was primarily due to the generally
improving California and national economic climate and the growth
experienced in the local North San Diego County area.
Licenses and permits were up by $1.7 million or 218% over 1982-83.
The primary factors in this growth were building permit revenues
and the City's license tax on new construction. Income from building permits rose by $580,000 between 1982-83 and 1983-84; an increase of 118%. The City's license tax on new construction, a
tax paid by builders who will place new demands upon existing City facilities, went into effect in late 1982-83. 1983-84 represents the first full year of existence for this source of revenue. During 1983-84, $980,000 was received by the City in license taxes on new construction. Business licenses also moved
ahead by about $70,000 or 26% over 1982-83. The license and
permit types of revenue are particularly sensitive to changes in the economy tied to new construction. Carlsbad has experienced a very strong growth period during 1983-84 which appears to be
continuing into 1984-85.
Intergovernmental revenues dropped by about $770,000 or 30%
between 1982-83 and 1983-84. This drop is primarily due to the
completion of a major dredging project in 1982-83. Capital project
grants in 1983-84 were substantially below the 1982-83 level.
Charges for services have been increasingly important to local
governments in California since the passage of the Property Tax
Limitation Initiative (Proposition 13) in 1979. Charges for
services include general fund sources such as developer fees, park
or library fees and ambulance or public safety fees. Fees have been
adjusted in many areas to reflect the cost of providing services.
Expenditures from government fund types totaled $17.2 million in
1983-84. This is an increase of about $1.7 million or 11% over
1982-83. These expenditures are distributed as shown below:
City of Carlsbad
Governmental Fund Types
Expenditures 1983-84
1982-83 1983-84 Expenditures 1983-84
Expenditures % of over (under) %
Expenditure Type (In $1,000) (In $1,000) Total 1982-83 Change
General Government S 2.272 s 2.562 14.9% S 290 12.8% Public Safety . 5;286
Public Works 2,935 Culture & Recreation 2,573 Welfare 72 7 Debt Service 43 7 Capital Projects 1,233
TOTAL EXPENDITURES $ 15,463
-I 5,983
3,443
2,896
825
458
1,003
$17,170 -
34.8 697 13.2
20.1 508 17.3
16.9 323 12.6
4.8 98 13.5
2.7 21 4.8
5.8 ( 230 1 (18.7)
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1 100.0% $1,707 11.0 - -
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The reduced water sales revenue shown in the above table is
directly related to the water service agreement with CRMWD. As
previously described, revenue from water consumption charges are
now passed tTrough t~o~tRFttDr ~-
Revenue from sewer service charges totaled $1.3 million in 1983-84 compared to $960,000 in 1982-83. This increase of 35% is due to three factors. First, the City experienced a sewer rate increase during 1983-84. Second, the agreement with CRMWD gave the City
the ability to more closely control all utility services within
the City. The merging of the City and CRMWD data bases allowed
the City to substantially reduce the number of water customers who had previously escaped paying sewer fees. Third, the City
has been growing at a very rapid pace. During the majority of
1983-84, the City utility users base was rising at a rate of 2%
per month.
This rapid growth in utility users can also be seen in the growth
in the major facility fee revenue. During 1983-84, the City
collected $1.7 million in major facility fees compared to
$657,000 in 1982-83, an increase of over 150%. These fees are paid by developers as they connect new buildings or structures to the water and sewer systems.
Revenues from other charges for services and reimbursed
expenditures primarily represent the activity of the City’s
internal service funds. The changes in revenues indicate the
increased charges to user departments for insurance or vehicle
maintenance services.
Expenses in the proprietary funds totaled $4 million for 1983-84
compared to $3.7 million for 1982-83, an increase of about
$344,000 or 9.4%. These expenses are summarized below:
City of Carlsbad
Proprietary Fund Types
Expenses 1983-84
1982-83 1983-84 Expenses
Expenses
Operating Expense (In $1,000)
Personnel Services $ 914
Repairs 8 Maint. 328
Professional Svcs. 5 38 Insurance 102
Purchased Water 92 6 Capital Outlay/Projects ---
Fuel 198 Claims 402
Other Expenses 250
Office Expense 20
TOTAL EXPENSES $3,678 -
(In $1,000)
$ 912 53
420
606 18
577
52
187
648
549 $qim -
4
% of Total
22.8%
1.3
10.4
15.1
0.4
14.3
1.3
4.6
16.1
13.7 100.0% -
1983-84
over (under)
1982-83
$ (2) 33
92
68
(84)
(349)
52
(11) 246
299 $344 -
%
Change
(0.21%
165.0
28.0
12.6
(82.4)
(37.7)
(5.6) 61.2
119.6
9.4
The City had no major changes in operations during 1983-84 which
would cause increased or decreased expenditure levels. The majority of the increase in expenditures in governmental funds is due to general cost increases and minor changes in staffing
levels , off= byreduced spending70Fi5p-iptal projects. __ -
Spending for capital projects will increase significantly in
1984-85 as several major projects enter the construction phase.
The City's Public Safety/Service Center, major storm drain
projects and several street projects will begin construction in
the first part of 1984-85.
Proprietary Fund's
This category includes the water and sewer enterprise funds as well as the workers' compensation and general liability self- insurance internal service funds and the central garage internal
service fund.
During 1983-84, the City began to implement the water service agreement between the City and the Costa Real Municipal Water District (CRMWD). Under this agreement the City becomes the
water retailer to all residents of the City while CRMWD becomes the wholesaler. CRMWD is also responsible for the construction and maintenance of major water lines, dams, reservoirs or other major facilities. The City now bills approximately 11,000 water customers using 300 million gallons each month. CRMWD absorbed the City's water maintenance crew (7 employees) into their
organization during 1983-84. Revenue from water sales is shared
between the City and CRMWD; the City receiving 100% of the ready to serve or flat monthly fee and CRMWD receiving 100% of the
water consumption charge based on units of water used.
Proprietary Fund Revenues totaled $5.4 million in 1983-84
compared to $4.2 million in 1982-83, an increase of $1.2 million or 30%.
City of Carlsbad
Proprietary Fund Type
Revenue 1983-84
1982-83 1983-84 Revenue Revenue % of
Revenue Source (In $1,000) (In $1 000) Total
Metered Water Sales $ 1,606 .m 24.1%
Sewer Service Charges 961 1,297 23.9 Sewer Connection Fees 657 1,663 30.6
Other Charges for Services 616 844 15.5
Reimbursed Expenditures 327
TOTAL OPER. REVENUE $ 4,167 322 5.9 $5,435 100.0%
1983-84
over (under)
1982-83
$ (297) 336
1,006
228
(5) $ 1,268
% Change
(18.5)%
35.0
153.1
37.0
(1.5) 30.4
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Major changes occurred in the water funds cost for purchased water which reflects a decline of about $350,000. This reduction
is a direct result of the agreement with CRMWD described above.
Other major changes are found in claims expenses where the City
records costs of the workers' compensation and liability self- insurance activities. Total expenses rose from $402,000 in 1982-
83 to $648,000 in 1983-84, an increase of 61%.
-_
The increase in repairs and maintenance and professional
services is due to additional costs associated with operating
the Encina Water Pollution Control facility and the City's sewer
system which provides sewer service to the City's 40,000
residents.
Total revenues in the enterprise funds were sufficient to
support all expenses of the respective operations. In the
internal service funds, both the workers' compensation and
liability self insurance funds recorded losses for the year. At
3une 30, 1984, the City contributed $150,000 to the liability
fund to help offset this loss.
Self Insurance Proqram
The City has been self-insured for workers' compensation since
September, 1978. The activity for this program has been
contained in the Workers' Compensation Self-Insurance Internal
Service Fund. Workers' compensation claims for 1983-84 amounted
to $333,000.
The General Liability Self-Insurance Fund was established near
the end of fiscal 1980-81. This year represents the third full year of operation under the liability self -insurance program.
During 1983-84, claims totaling $314,000 were paid out of this
fund. Contributions of $150,000 were made from the General Fund to support the program and to bring the fund equity up to an
acceptable level.
Cash Hanagement
The City Treasurer is charged with the responsibility of safe- guarding the City's assets, receiving all payments due the City and investing all inactive funds. This year the City Treasurer earned about $2.1 million in interest on investments in all fund types from instruments earning from 7.5% to 12.5%. This
represents an increase of about 15% over the 1982-83 total of
$1.8 million. Funds are invested in various types of notes and
certificates and are fully insured or collateralized. At 3une
30, 1984, the treasurer had 97% of all available funds invested.
6
Bonded Debt
~ _- The City's total outsLandina_aempal Jxmde-U-
1984 was $3.8 million or about $95 per capita. The City had water revenue bonds outstanding in the amount of $1,027,000. The
following report includes detailed listings of debt service requirements and other pertinent information on the City's debt
administration activities.
Economic Trends
Carlsbad has experienced a very strong recovery from the
relatively weak economy of early and mid 1982-83. In the last
part of 1982-83, the City's retailers and builders began to show
signs of recovery which accelerated throughout 1983-84 and
continued into 1984-85. The City can expect strong tax revenues in sales tax, property tax and transient occupancy tax for the
1984-85 fiscal year. In addition, the rate of building in
Carlsbad has continued to grow throughout 1983-84 and should continue at a high level for at least the first half of 1984-85.
The addition of several major hotels to the downtown area and along Interstate 5 will improve the City's transient tax revenue base substantially. The early part of 1984-85 shows no signs of slowing for the Carlsbad economy.
Acknowledgements
The preparation of this report has been the joint effort of our
independent certified public accountants, the Finance Department
and Central Services Department. Each party has played a very
important part in the creation of this comprehensive financial report. We wish to express our appreciation to the staff of
Deloitte Haskins and Sells, the Finance Department and Central
Services for their dedicated efforts. Our appreciation also goes
to both City management and the Council for their support of the
Finance staff and this project.
R es p ec t f u lJ- y Su bm f t t e d ,
,/ /*
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' < I- < <-' i-) ,
if ' di,d 3amesLF!- Elliott Fihance Director
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8
I CITY OF CARLSBAD
ELECTED CITY OFFICIALS
Mary H. Casler, Mayor
Claude A. Lewis, Council Member Ann 3. Kulchin, Council Member Richard 3. Chick, Council Member
Mark V. Pettine, Council Member Aletha L. Rautenkranz, City Clerk William C. Esterline, City Treasurer
AOHINISTRATION AND DEPARTHEW HEADS
Frank Aleshire, City Manager
Frank Mannen, Assistant City Manager/Administration Vincent F. Rfondo, 3r., City Attorney
Ronald Beckman, City Engineer
David Bradstreet, Parks and. Recreation Director James F. Elliott, Finance Director Ruth Flethcer, Purchasing Officer Roger Greer , Utilities /Maint enance
Vincent Jimo, Police Chief
Clifford Lange, Library Director Martin Orenyak, Building and Planning
3erome No. Piet i, Personnel Director 3ames Thompson, Fire Chief
Director
Director
CHAIRPERSONS, COMMISSIONS AND BOARDS
David Bates Personnel Board Robert (Andy) Borden Building Authority Richard Goodwin Parking Authority
3eff Punches Sharon Schrarn Library Board
Scott Wright
Traffic Sat ety Commission
Parks and Recreation Canmission
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I Deloitt e Haskins+Sells
Suite 1900
San Diego. California 92101 -8198
(61 9) 232-6500
TWX 91 0-335-1 573 I
AUDITORS' OPINION
Honorable Cit Council
We have examined the combined financial statements of the City of Carlsbad as of June 30, 1984 and for the year then ended, as listed in the foregoing table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
City of Carls g ad, California
In our opinion, the combined financial statements referred to above present fairly the financial position of the City of Carlsbad at June 30, 1984, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year after giving retroactive effect to the chan e, with which we concur, in the method of accounting for compensated absences as described in Note 2 to the financial statements.
Our examination also comprehended the statements and schedules as of and for the year ended June 30, 1984 as listed in the supplemental data section of the foregoing table of contents. In our opinion, such supplemental statements and schedules, when considered in relation to the combined financial statements present fairly, in all material respects, the information shown therein.
October 4, 1984
' 14
CITY OF CARLSBM)
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Combined Balance Sheet All Fund Types & Account Groups
3une 30, 1984
Governmental Fund Types Cap ita1 -peciainbt e General Revenue Service Projects
Assets:
Cash and investments
-
(Note 5) $ 684,065 $ 4,730,653 $1,566,201 $11,795,377
Receivables: Taxes 452,491 Accounts 411,404 Accrued interest 203 , 284 Due from other governments ---
Advances to other funds 573,946 Inventory, at cost 7,589 Prepaid expenses 43 , 500
Cash & investments (Note 5) --
Accrud fnterest -- - Investment in sewage treat. fac. ---
Property, plant and equipment (net of accumlated depreciation) (Note 6) ---
Amount available in debt
Amount to be provided for retire-
Restricted assets:
service funds ---
merit of general long-term debt ---
Total assets $ 2,376,279
Liabilities:
Accounts payable $ 468,7M Accrued wages payable 1,002,022 Due to other funds --- Advances from other funds --- Advances from other governments --- Deposits payable ---
payable (Note 13) -- - Prepaid annual contributions --- Estimated claims payable ---
Accrued interest payable --- Revenue bonds payable -- -
(Note 7) ---
unamortized discount of $7,404 and current portion - Note 7) Deferred revenue -- -
Obligations under capital lease (Note 8) ---
Other payables
Deferred compensation
Payable from restricted assets8
General obligation bonds payable
Revenue bonds payable (net of ---
Total liabilities - vi5TE
%%%%id capital -- -
Investment in general fixed
Retain. earn (deficit)(Note 11) ---
Fund balances (Note 11): 905,553
assets ---
17,275
12 5,827 48,926
---
59,798
---
- --
$4,862,491
---
$1,601,146 $11,795,377
$ 205,812 3,014
4,180 98,940
---
---
$ 19,112 1,065 -- - 1,939 --- --- --- 569,766
e-- --- --- ---
e e- ---
--- ---
1,582,034 11,222,607
1,582,034 11,222,607
$1,601,146 $11,795,377
4,479,474
4,479,474
$4,862,491
Total fund equity 905,553 Total liabilities and fund equity $ 2,376,279
See accompanying notes to combined financial statements
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Fiduciary lot als P mprietaiy4%mt-J+- Ad- (Wly! Internal General General Lona- hne 30. June= -I Term Debt 1984 1983 Flxed ksets Servlce Enterprise
$18,531,357 $5,329,441 $1,739,697 $2,389,004 $28,234,438
469,766 1,472,206
244,699
48,926 573,946
109,690
, 618,525
12,998,980
112,804
---
154,805 1,114,154
248,872
109,OeO 374,166 119,840
325,488
556,351
10,703 ---
--e
1,060,790
643 --- ---
105,295
6,392
618,525
12,998;980
--- ---
-e- ---
10,532,7 38 588,561 $18,496,987 29,618,286
1,582,039
2 802,007
$78.886.38 7
40,692,992
1,462,841
3,410,533
567.111.182
--- e--
$1,582,034
2,802,007 ---
$2,328,901
---
$2 , 389,004
---
$ 18,496,987 $4,384,041 S30,652,161
$ 934,223
272,443 109,080 374,166 87,199 1,755,113
228,576
63,966 299,643
$ 973,819
12,516 --- --- ---
88,512
$ 90,890 4,862 $ 1,259,402.
1,024,353
573,946
98,940 2 153,073
324,443
71,071 407,410
28,438 125,000
3,800,000
$2,064,561
324,443 - --
e--
--- ---
--I 487,410
28,438 125 ,OOO
I-- --- ---
125,000
3,9 15,000 S3,800,000
894,596 2,563,778 894,596 2,563,778
473.598
893,362 ---
--a --- -a- _--
793.623 473,598
110,443
4,384 , 041
---
-e-
---
110;443 164’751
13,988,491
~~
4,186,659 583,162
2,095,456
2 , 389,004
18,812,487 20,907,943 23,095,399
16,562,6 57
5,505,309
11,871,672
57,035,037
$67,111.182
19,496,987 - -- 18,496,987
7,303,298
18,189,668
64,897,896
$78 , 886 9 387
--- --e ---
7,653,015 ---
26,465 , 502
S30.652.161
( 349 ,7 17 1 ---
1,745,739
$2,328,901 -
--- e-- --- ---
$2,389,004
18,496,987
$18,496,987
---
$4,384,041 -
16
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Year ended 3une 30, 1984
Revenues: Taxes
Licenses and permits Intergovernmental revenues Charges for services
Fines and forfeits
Interest income Miscellaneous revenues
Total revenues
Expenditures : . General government Public safety Public works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges
General
$1 1,392,335
2,451,817
2,491
2,182,267
256,471
565,281
55,365
16,906,027
2,534,868
5,813,451
1,907,416
2,627,307
-- -
Total expenditures 12,883,042
Excess (deficiency) of revenues
over expenditures 4,022,985
Other financing sources (uses):
Operating transfers in -- -
Operating transfers (out) (348,400)
Total other financing sources (uses) (348,400) Excess of revenues and other sources
over expenditures and other uses 3,674,585
previously reported 703,569
Fund balances at beginning of year as
Prior period adjustment (Note 3) 62,240 Fund balances at beginning of year as adjusted 765,809 Cumulative effect of changes in accounting
principle (Note 2) ( 492,296)
Residual equity transfers in 543,000 Residual equity transfers (3,585,545)
Fund balances at end of year $ 905,553
See accompanying notes to combined financial statements
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Special Revenue
$1,063,313
I, 775,096
---
--- ---
451,635 12.637
3,302,681
11,850
I, 501,152
825,236 136,814
364,059
---
2,839,111
463,570
463,570
4,558,904
4,558,904
---
---
( 543,000
$4,479,474
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Tot ac
(Memorandum Only) 3une 30, 3une 30,
1984 1983
$10,732,787 771,240
2,551,262 2,451,708 231,086 1,396,896 179,271
18,314,250
$12,644,122 2,451,817
1,777,587 4,747,95 1
256,47 1 1,542,092
378,245
23,798,285 247,431
4,491 --- --- - -- - -- ---
1 15,000 243,047
362,538
( 11 5,107)
348,400 ---
2,551,209 5,813,451
3,408,568
925,236 2,764,121 1,003,261
2,272,174 5,285,609
2,935,279 727,155
2,573,014
1,233,048
185,000
252.147 1 15,000 243,047
16,723,893 15,463,426 639,202
2,702,944
--- ---
2,850,824 7,074,392
514,570
( 778,053)
( 263,483)
2,587,341
348,400
( 348,400)
348,400
233,293
1,462,841
1,348,741
( 1 14,100)
--- --- ---
7,074,392 2,702,944
5,146,358
5,084,118 ( 62,240)
---
3,435,545 ---
11.871,672 9,153,705
130,626
9,284,331
( 114,100)
11,757,572
( 49 2,296
3,978,545
( 4,128,545)
$18,189,668 $11,871,672 $ 11,222,607 -J $ 1,582,034
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Codined Statwnt of Revenues, Expenditures and
Changes in Fund Balances - Eludget & Actual All Governmental Frnd Typea
Year ended &ne 30, 1984
Spacial Revenue Funds Variance
f avorrble (unfavorable)
General Fund Variance
f avorable (unfavorable)
S 918,335 861,817 2,491 732,967
(134,719) (8,529)
(22.635) .
2,349,727
638,561 229,992 321,528
159,161
--- ---
Rwtnuarr 1-9 L1can-s Md permits
Intergovermntal revenues Charges for wrvices Ffm nd forfeits Interest 1- His~llan8Ous NVWOS
Total Revenws
General government Public Safety Public Works Welfare Culture and recreation
Capital projects Debt aervica e~itums: Principal retiramt
Total Expenditurr
Expenditures:
Interart md fiscal ch.9.
Bud?#t Actual
S 973,544 S 1,063,313
8udQet
1,590,000 S 10,474,000 ---
1,449,- 265, 000 700,000
78.000
14,556,300
3,173,429 6,042,943 2,228,944
2,786,468
--- ---
ACtU.1
S 11,392,335 2,451,817 2, b91 2,182,267 256,471 565,281 55,365
16,906,027
2,534,869 5,813,451 1,907,416
2,627,307
--- ---
S 89,769
(839,224) --- ---
367,633 12.637
( 369,183)
(ii,emo) ---
2,350,282 (35,254) 119,101 2.1 15,816 - -- ---
4,538.09S
---
1,775,096 --- ---
451,635 12.637
3.302.681
ii,am ---
1,501,152 825.236 136,814 364,039
---
2,839,111
463.570 --- ---
463.570
4,558,904
4,518,904
---
---
(543.000)
--- ---
3,851,434 789,982 255,915 2,479,875 --- ---
7,377,206
---
-e-
1,348,742
3,698,469 (3.705.342) 4,168.912
---
. and other sources owr expend- itw ud other -8 (23,884) ' 3,674,585
previously nportod 703,569 703,569 Fund balanas at boginning of year u
4,160,912 3,698,469
---
62.240
62.240
(492,2%)
( 3,042,545)
S 225.668
Prior parid-d)rt.ent (Note 3) --- 62.240 Fd bal.ncas at beginning of year
Cwlatiw offat of change in u d*td 703.569 765.809
accounting principle 1-0 2) --- (492,296)
Residual equity transfers in (out) --- (3.042.545)
Fund balances at end of you s 679,683 s 905,553
See .ecoq.nying notes to collbirud flnmcial statmmts
(543,0001 s 310,562 S 4,479,417b -
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Capital Rolrt Fudr VUlMa Debt Service Funds v.rimC0
fJWCrbh (unfavorable)
s (8,821)
a**
387,040 310.243
757,146
--- --- ---
Actual
$ 79,179
2,565,684
387,040 310.243
3,342,146
--- --- ---
e--
4,491 ---
e-- ---
e-- ---
115,m 243.017
362.538
(115.107l
3bo.400
348.400
115,Ooo 243.386
Mz.877
(121.022)
w.400
3bo.wr)
' ---
4,610,430
5.367.576
2,072.944
5,146,358 (62.240)
5*004,118
5, 367.576 (2,664,6321 5.915 233.293
l,WZ,Ml 114.100
1,348.741 --- ---
$ 1,582,034
(114.100)
~~ --- 3,435,5@5
S 2.481.726 S 11.222.607
3, i35.545
S 8.740.881 S (108,195) - --
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I CITY OF CMLSBAD
Conbi ned Statement of Revenues, Expenses, C-haqU*€ai*
Year ended &ne 30, 1984 Totals I
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(Memorandum Only) %ne 30, 3une 30, Internal Service Enterprise 1984 1983
Operating revenues: Metered water sales Sewer service charges Sewer construction fees Other charges for services Reilnbursed expendi tures
Total operat ing revenue
$ 1,309,379
1,160,834 1,799,010
129,437 ---
$ 1,309,379 $ 1,606,202
1,160,834 961,217
1,799,010 657,370 843,716 615,506
321,648 326,906
5,434,587 4,167,201
$ 714,279
321,648
1,035,927 4,398,660
Operating expenses: Personnel services Office expenses Repairs and maintenance Professional services Insurance Purchased water
Loss on disposal of property
Bad debt expense Depreciat ion and arnort i zat ion Fuel Supplies and parts Claims expense
Other operating charges
723,394 51,666
638,150 16,331
577,081
16,092
56,021 256,250
361,649
---
188,554
1,246
77,208 --- --- --- --- ---
145,452
187,316
72,137
2,784
648,191
91 1,948
52,912 438,857
638,150
18,331 577,081
16,092
56,021 401,702
187,3 16
72,137
648,191 2,784
914,233
21,468 328,142
537,524
102,322 926,347 --- ---
159,396 198,094
84,820
2,973 402,854
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses) : Interest income Interest expense and fiscal agent fees Sale of property Total non-operating revenues
Net income (loss) before operating transfers Operating transfers in Net income ( loss)
1,322,888
( 286,961 )
2,698,634
1,700,026
4,021,522 3,678,173
1,413,065 489,028
403,675
( 56,875 1 - --
135,8% 539,571 404,991
( 56,875 1 ( 64,492 1 18,134 5,764
500,830 346,263
19913.8% 83 5.29 1
---
18,134
154,030 346,800
(132,931) --- 2,046 ,8 26 --- --- 15;553
1,913,895 850,844 2,046,826
Retained earnings (deficit) at
Prior period adjustments (note 3) Retained earnings (deficit) at beginning of year as adjusted Retained earnings (deficit) at
beginning of year (69,263)
( 147,523) 5,574,572 31,617
5,606,189
5,505,309 4,654,465 (115,906) ---
(216,786) 5,389,403 4,654,465
$ '(349,717) $ 7,303,298 $ 5,505,309 - end of year (note 11) $ 7,653,015
See accompanying notes to colnbined financial statements
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CITY OF CARLSBAO
Combined Statement of Changes in Financial Position
I
rr Year ended 3une 30, 1984
1 Sources of working capital :
I Operations
Net income (loss) $
Less gain on sale of property
Items not requiring working capital:
Depreciation and amortization
Loss on disposal of property
Working capital provided by
operations
Proceeds from sale of property
I
1 Contribution from other funds
Enterprise
2,046,826 ---
256,250
16,092
2,319,168
12,727
Internal
Service
$(132,931)
(18,134)
145,452 ---
(5,613) 36,952
156.439
Tot a1
(Memorandum Only)
June 30, June 30,
1984 1983
$1,913,895 $ 850,844 (18,134) ---
401,702 159,396 16,092 ---
2,313,555 1,010,240 36,952 ---
169,166 1,065,609
Total sources of working capital 2,331,895 187,778 2,519,673 2,075,849
'Uses of working capital:
equipment 36,735 161,337 ' 198,072 946,818 1 Decrease in long-term revenue bonds payable --- --- --- 1 1 5,000
Acquisition of property, plant, and
Net decrease (increase) in other restricted
assets and related liabilities 23,033 23,033 (809,244) I Reduction of deferred revenue 136,000 --- 136,000 ---
Total uses of working capital 195,768 161,337 357,105 252,574 I Net increase in working capital $ 2,136,127 $ 26,441 $2,162,568 $1,823,275 ----.-
Elements of net increase (decrease) in 1 unrestricted working capital:
Cash and investments
Accounts receivable I Accrued interest receivable
Inventory
Prepaid expenses 1 Accounts payable
Accrued wages payable
Estimated claims payable
Due to other funds I Deposits payable
$1,902,569
608,591
( 28,083 )
(7,107) (169,146)
(152,890)
(8,014) ---
(9,793)
Net increase in working capital $ 2,136,127
See accompanying notes to combined financial statements I
$ 275,827 $ 2,178,396 $1,984,484
(6,722) (34,805) 15,259
(7,107) 6,970 --- (169,146) 170,221
(54,247) (207,137) (257,638)
(650) (8,664) 3,570
( 187,767 ) ( 187,767) (92,082) --- --- 12,397 --- (9,793) (8,945)
$ 26,441 $ 2,162,568 $1,823,275
--- 608,591 (10,961)
---
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CITY OF CPRLSBAD.
Notes to Combined Financial Statements
3une 30, 1984
(1) Summarv of Sianificant Accountina Policies
The accounting policies of the City of Carlsbad, California conform to
generally accepted accounting principles for governmental units.
following is a summary of the more significant policies:
(a)
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The
Description of the Reporting Entity
The financial statements of the City of Carlsbad include the financial
activities of the City, the Housing Authority of the City of Carlsbad,
the Parking and
Carlsbad Redevelopment Agency. Their financial operations are closely
related and the City Council has a continuing oversight responsibility
over the entities. The oversight responsibility is determined on the
basis of budget adoption, taxing authority, funding and appointment of
the governing board.
Building Authorities of the City of Carlsbad and the
(b) Fund Accounting 1
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The accounts of the City are organized on the basis of funds or
account groups, each of which is considered to be a separate
accounting entity. The operations of each fund or account group are
accounted for by providing a separate set of self-balancing accounts
that comprise its assets, liabilities, reserves, fund balancetretained
earnings, revenues, expenditures or expenses. The various funds and
account groups are summarized by type in the financial statements.
Fund types and account groups used by the City are as follows:
GOVERNMENTAL FUNDS:
I General Fund
The General Fund is the general operating fund of the City. All gen-
era1 tax revenues and other receipts that are not allocated by law or
contractual agreement to some other fund are accounted for in this
fund. The fund is utilized to account for payments made for general
operating expenses and capital improvement costs which are not paid
through other funds.
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Special Revenue Funds
The Special Revenue Funds are used to account for revenues derived
from specific sources which are restricted by law or administrative
regulation to expenditures for specified purposes.
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CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Debt Service Funds
Debt Service Funds are used to account for the accumulation of re-
sources for, and the payment of, general long term debt principal, in-
terest and related costs.
Capital Project Funds
Capital Project Funds are used to account for financial resources to
be used for the acquisition or construction of major capital facil-
ities (other than those financed by proprietary funds) .
PROPRIETARY FUNDS
Enterprise Funds
The Water Utility Fund and the Sewer Enterprise Fund are used to
account for operations that are financed and operated in a manner
similar to a private business enterprise where the intent of the City
Council is that the costs (expenses, including depreciation) of
providing goods and services to the general public on a continuing
basis be financed or recovered primarily through user charges.
Internal Service Funds
Internal Service Funds are utilized to finance and account for activ-
ies involved in rendering services to departments within the City.
Costs of services are accumulated in these funds and charged to user
departments as such costs are incurred.
FIDUCIARY FUND
Agency Funds
The Agency Funds are used to account for assets held by the City in
an agency capacity for individuals and private businesses .
ACCOUNT GROUPS
General Fixed Assets Account Group
General Fixed Assets have been acquired for general governmental pur-
poses. Assets purchased are recorded as expenditures in the govern-
mental fund types and capitalized at cost in this group of accounts.
In the case of gifts or contributions, such assets are recorded in
general fixed assets at fair market value at the time received.
24
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CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, and drainage systems have not been capitalized. Such assets normally are immovable and of value only to the City; therefore, stewardship
for capital expenditures are satisfied without recording of these assets .
- No depreciation has been provided on general fixed assets.
General Long-Term Debt Account Group
This group of accounts is used to account for General Long Term Debt (backed by the full faith and credit of the City) including the City's obligations under capital leases.
(c) Measurement Focus and Basis of Accounting
The proprietary (enterprise and internal service) fund types are accounted for on an "income determination" or "cost of services" measurement focus. Accordingly, all assets and liabilities are in- cluded on the balance sheet, and the reported fund equity provides
an indication of the economic net worth of the fund. Operating state- ments for proprietary fund types report increases (revenues) and de-
creases (expenses) in total economic net worth.
Governmental (general, special revenue, debt service and capital pro- jects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets, and the reported fund balance pro- vides an indication of available, spendable resources. Operating statements for governmental fund types report increases ( revenues) and decreases (expenditures) in available spendable resources .
Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
The modified accrual basis of accounting is followed by the govern- mental funds and fiduciary fund. Under the modified accrual basis of
accounting, revenues are recorded when measurable and available .
Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when liabilities are incurred, except that
interest on long term debt is considered an expenditure in the period in which it is budgeted.
The accrual basis of accounting is followed by the proprietary funds.
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Notes to Combined Financial Statements, Continued
Investments
Investments are stated at cost, which approximates market.
Inventories
Inventories within the various fund types consist of materials and
supplies which are valued at the lower of average cost or market and
are recorded as expenses when consumed.
Comoensated Absences
Vacation pay is payable to employees at the time used or upon
termination of employment.
maximum of 29 days in any one year for miscellaneous employees and
safety employees and 40 days in any one year for management employees.
Sick leave accrued but unused is cumulative from year-to-year.
employees within the merit system, sick leave may not be taken as
vacation or compensated for in cash. Permanent miscellaneous
employees (as defined) accumulating and maintaining 100 hours of sick
leave can convert up to 12 days of sick leave to vacation at a ratio
of three sick leave days to one vacation day. Upon retirement, such
employees may also convert accrued and unused sick 1eave.to extend
service time at the rate of 25 sick days to one month of service
time.
Vacation days are cumulative up to a
For
Budqetary Data
The City follows these procedures in establishing the budgetary data
reflected in the financial statements:
1. During May or 3une, the City Manager submits to the City Council a
proposed operating budget for all funds of the City for the fiscal
year commencing the following 3uly 1. The budget includes
proposed expenditures and estimated revenues on a line item
basis.
2. Public hearings are conducted at City Council meetings to obtain
citizens' comments during 3une.
Committee facilitates this process.
A Citizens Budget Reveiw
3. Prior to 3uly 1, the budget is legally enacted through passage of
an appropriation resolution.
4. The City Manager is authorized to make transfers of appropriated
amounts within a fund and function for up to $10,000. Revisions
that alter the total appropriations of any fund or function must
be approved by the City Council.
conducted each year.
approved by the City Council at that time.
A mid-year budget review is
Any major changes to the adopted budget are
26
CITY OF CARLSBAD
Notes to Combined Financial Statement, Cont inued
5. Monthly budget control reports are generated to assist the Finance
Department and other department heads in controlling the budget.
6. Budgets for the General, Special Revenue, Debt Service, and
Budgeted amounts
Capital Projects Fund are adopted on a basis consistent with
generally accepted accounting principles .
contained within this report are as amended by the City Council.
(h) Self -Insurance
The City is self-insured for general liability and workers'
compensation claims up to $50,000 and $100,000 per occurrence,
respectively, with a yearly maximum aggregate liability of $250,000
and $10,000,000, respectively, and purchases outside insurance
coverage for individual claims in excess of that amount.
(i) Memorandum Only Totals
Columns in the accompanying financial statements captioned "Totals
(Memorandum Only)" are presented as additional analytical data and do
not present financial statements in accordance with generally accepted
accounting principles.
( j ) Encumbrances
Encumbrances outstanding at year end are reported as reservations of
fund balances of the governmental funds since they do not constitute
expenditures or liabilities.
(k) Fixed Assets - Proprietary Funds
Fixed assets owned by proprietary funds are capitalized at historical
cost or fair market value at date contributed. Depreciation is
charged to operations using a straight-line method based on the
estimated useful life of the asset. The estimated useful lives of the
assets are as follows:
bildings
Structures and improvements
Sewer, sewer lines and wells
Equipment Wells, reservoirs and dams
Transmission and distribution
Filters and pumps
Fire hydrants
10-25 years
50 years
40 years
4-10 years
10-100 years
lines 40-70 years
10-50 years 50 years
(1) Unbilled Service Receivables
Unbilled service receivables in proprietary funds are reflected in
accounts receivables at year end with a corresponding increase in
revenues.
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Notes to Combined Financial Statement, Cont inued
(m) Investment in Sewer Facility
The City has an ownership of approximately 25% in a joint sewer system
known as the Encina Water Pollution Control Facility (the Facility).
The City accounts for such investment on a cost basis as it does not
have significant influence over the management or the operations of
the Facility. The Facilit) charges the City usage fees on a cost-
reinbursement basis; such charges totaled $564,570 and are classified
as Professional Services expense.
( n) Deferred Revenue
The deferred revenue balances of the Enterprise Fund relate to
deposits or in-kind pre-payments for services to be rendered (e.g.,
sewer installation, etc.) .
( 2) Account ina Chanaes
Effective 3uly 1, 1983, the. City changed its method of accounting for
compensated absences in conformance with NCGA statement 4. The accrual for
compensated absences at June 30, 1984 totals $532,679.
(3) Prior Period Adjustments
General Fund and Capital Project Fund
In prior years, the City had not recorded interest on advances from
the General Fund to the Redevelopment Project (Capital Projects Fund).
The effect on beginning fund balance is $62,240.
Sewer Enterprise Fund
Retained
Earnings Cap it a1
Cont r i but ed
During the fiscal year ended &ne 30,
1982, the City recorded a non-monetary
exchange of future sewer installation
credits for a sewage treatment facility
as an increase. to contributed capital
instead of deferred revenue [see note (1)
(dl.
$ 131,385 $ (2,604,423)
In prior years, the City recorded ( 100,27 8) 100,278
depreciation expense as a reduction of
contributed capital.
Net prior period adjustment '31,107 $( 2,504,145)
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CITY OF CPRLSBAD
Notes to Combined Financid Statement. Continued
-
Internal Service Fund
In the prior year, the City recorded
depreciation expense related to the
Central Garage Internal Service Fund as a reduction of Contributed Capital.
Debt Service Funds Bui 1 ding Author it y
In the prior year, the $36,000
City had improperlk recorded -
amounts related to deferred revenue direct to fund balance
Contributed Caoi t a1
$147,523
Par king Fund
Authority Balance
$78,100 $1 14,100 -
(4) Seament Information for Enterorise Funds
The City maintains two Enterprise funds which provide water and sewer
service;. Segment information
follom:
Operating revenues .
Depreciation and amortization
Operating income or (loss)
Net income
Current cap it al:
Property, plant and equipment
expenses
Cont r i but ions
( at cost) : Additions Delet ions
Net working capital
Bonds payable from operating revenues
Total Assets
Total Equity
for the year eked 3une 30, 1984 was as
~~~ ~
Water Fund
$ 1,414,332
137,506
(142,841)
58,516
2,423,080
. 11,270
93,588
2,881,845
894,596
8,440,713
6,83 3,047
Tot al Sewer Enterprise
Fund Funds
$ 2,984,328 $ 4,398,660
118,744 256,250
1,842,867 1,700,026
1,988,310 2,046,826
16,389,407 18,812,487
25,465 36,735 --- 93,588
3,045,226 5,927,071
--- 994,596
22,2 I 1 ,4 48 30,6 52,16 I
19,632,455 26,465,502
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CITY OF CARLSBAO
Notes to Combined Financial Statements, Continued
Cash and Investments
A summary of cash and investments as of 3une 30, 1984 follows:
Interest Rates cost
Cash --- $ 761,653
Certificates of Deposit 9.75 - 12.50% 16,154,687
Miscellaneous Investments 9.20 - 9.70% 4,843,953
Banker's Acceptance Notes 10.97 - 11.90% 5,828,126
Federal Agency Notes 9.30 - 11.35% 1,264,544
$28,852,963
Fixed Assets
A summary of changes in general fixed assets' follows:
Balance
3uly 1, 1983
Land $ 5,628,455
Buildings 3,241,767
Other
Improvements 6,249,276
furniture and
Equipment 1,443,159
TOTAL $ 16,562,657
Delet ions
Transfer To
Internal Sewer Other Balance
Additions Service Fund Ent. Fund Deductions &ne 30, 1984
$ 28,227 $ 5,656,682
139,359 3,381,126
1,725,351 7,974,627
332,451 $ 6,439 $ 12,727 $ 271,892 1,484,552
$ 6,439 $ 12,727 $ 271,892 $ 18,496,987 - - P - $2,225,388
A summary of Proprietary Fund property, plant and equipment at June 30,
Land, water rights, rights of way
Buildings
Structures and improvements
Wells, reservoirs and dams
Transmission and distri-
Transmission and distribution lines
Sewer, sewer lines and wells
Purification, pumps and
Fire hydrants
Equipment and vehicles
Fire protection services
Construction in progress
TOTAL
Less Accumulated Depreciation
TOTAL
booster stations
Total
Enterwise
Funds $ 459,206
37,964
1,289,853
37,948
4,022,304
4,420,783
147,349
364,969
588,938
5,759
2,676,618
14.051.691
(3; 51 8; 953)
$ 10,532,738
Total Total
Internal Pr OD r iet ary
Service Funds Funds --- 459,206 --- 37,964
--- 1,289,853
--- 37,948
--- 4,022,304 --- 4,420,783
--- 147,349 --- 364,969
$ 1,350,218 1,939,156 --- 5,759 --- 2,676,618
1,350,218 15,401,909
$ 588,561 $1 1,121,299
(761,657) (4,280,610)
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CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Long-Term Debt
A summary of Revenue Bonds Payable - Proprietary (Water Enterprise) Fund
is as follows:
Balance 3une 30, 1984 1958 Waterworks Revenue Bonds, principal due in amounts ranging
from $40,000 to 47,000 on 3uly 1 of each year through 1988
(Interest is payable on 3anuary 1 and 3uly 1 at each year at
varying rates from 4.25% to 4.10%) $ 217,000
1960 Waterworks Revenue Bonds, principal due in amounts ranging
from $10,000 to 65,000 on 3uly 1 of each year through 1990 (Interest is payable on 3anuary 1 and 3uly 1 at each year at
varying rates from 4.25% to 3.875%)
1970 Waterworks Revenue Bonds, principal due in amounts ranging
from $75,000 to $100,000 on July 1 of each year through 1990
(Interest is payable on 3anuary 1 and 3uly 1 at each year at
varying rates from 6.0% to 6.9%) 625,000
Total revenue bonds payable 1,027,000
185,000
Less unamortized discount
Less current portion
Total
(7,404) ( 125,000)
$' 894,596
Principal maturities on the Revenue Bonds Payable as of 3une 30, 1984 are as
f 0l.lows :
Fiscal Year
1984-85 $ 125,000
1985-86 130,000 1986-87 140,000 1987-88 150,000
1988-89 157,000
Thereafter 325,000
TOTAL $1,027,000
A summary of changes in general long-term debt (serviced by the City's Debt
Service Fund) of the City is as follows:
Balance Balance
3uly 1, 1983 Additions Payments &ne 30, 1984
1962 Series A General Obligation
Sewer Bonds, principal due in
amounts ranging from $40,000
to $50,000 on 3uly 1 of each year through 1988 (Interest is payable on 3anuary 1 and 3uly 1 at 3.5% per annum) $ 210,000 --- --- $ 210,000
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Notes to Combined Financial Statements, Continued
Balance Balance
3uly 1, 1983 Additions Payments &ne 30, 1984
1962 Series B General Obligation
Sewer Bonds, principal due in
amounts ranging from $40,000
to $100,000 on July 1 of each
year through 1991 (Interest
is payable on January 1 and
3uly 1 at rates varying from
1962 Series C General Obligation
Sewer Bonds, principal due in
amounts ranging from $20,000
to $25,000 on July 1 of each
year through 1991 (Interest
is payable on 3anuary 1 and
3uly 1 at rates varying from
3.6% to 3.75%) 185,000
Bonds, principal due in amounts
ranging from $15,000 to $25,000
on 3uly 1 of each year through
1992 (Interest is payable on
3anuary 1 and 3uly 1 at 4.5%
per annum) 15 5,000
1967 Carlsbad Building Authority
Revenue Bonds, principal due in
amounts ranging from $20,000 to
$35,000 on December 15 of each year through 1993 (Interest is
payable on December 15 at 5.25%
per annum) 260,000
1969 Carlsbad Parking Authority Revenue Bonds, principal due
in amounts ranging from $50,000
to $125,000 on October 1 of each
year through 1996 (Interest is
payable on October 1 and April
1 at rates varying from 6.0%
to 6.4%) 1 , 125,000
1981 Carlsbad Parking Authority
Revenue Bonds, principal due in
amounts ranging from $40,000 to
$150,000 on February 1 of each
year through 2001 (Interest is
payable on August 1 and
3.5% to 3.6%) $ 480,000
1966 Library General Obligation
February 1 at-8% per annum) 1,500,000
TOTAL $3.915 .OOO
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- -- $ 480,000
185,000 ---
$ 15,000 140,000
29,000 240,000
50,000 1,075,000
30,000 1,470,000
$1 15.000 $3,800,000
I CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Debt Service requirements to maturity:
Fiscal
Year
1984-85
1985-86
19 86- 87
1987-88
1988-89
TOTAL
Fiscal
Year -
1984-85
1985-86
19 86- 87 1987-88 1988-89
19 89 -90 1990-91 1991-92
TOTAL
Fiscal Year -
1984-85
1985-86
19 86-87
19 87-88
19 88-89
1989-90
1 990 - 9 1
1991 -92
TOTAL
Schedule of 1962 General Obligation
Sewer Bonds, Series A, Debt Service to Maturity
Interest Interest Tot a1 Principal Due 3uly 1 Due 3anuary 1 Interest Due 3uly 1
$ 3,675 $ 2,975 2,975 2.275
2;275
1,575 1;575
8 75
875 -0-
$ 11,375 $ 7,700
Schedule of 1962 Sewer Bonds, Series 8,
Interest Interest Due 3uly 1 Due 3anuary 1
$ 8,580
7,880
7,180
6,480 5,760
5,040
3,420
1,800
$ 46,140
$ 7,880
7,180
6 ,.UO 5,760
5,040
3,420
1,800 -0-
$ 37,560 -
Schedule of 1962
Sewer Bonds, Series C,
Interest Inters t Due 3uly 1 Due 3anuary 1
$ 3,437
3,078
2,707
2,338
1,875
1,406
937 469
$ 16,247
$ 3,078
2,707
2,338 1,875
1,406 938 469
-0-
$ 12,811 -
$ 6,650 $ 40,000 5,250 40,000
3,850 40,000
2,450 40,000
875 50,000
$ 19,075 $ 210,000
g -
General Obligation
Debt Service to Maturity
Tot a1 Principal
Interest Due 3uly 1
$ 16,460
15,060
13,660
12,240
10,800
8,460
5,220
1,800
$ 83,700
$ 40,000
40,000
40,000
40,000
40,000
90,000
90,000
100,000
$ 480,000
General Obligation
Debt Service to Maturity
Tot a1 Principal
Interest Due 3uly 1
$ 6,515
5,785
5,045
4,213
3,281
2,344 1,406 469
$ 29,058 -
$ 20,000
20,000
20,000
25,000
25,000
25,000 25,000 25,000
$ 185,000
.-
Tot a1 Annual
Debt Service
$ 46,650
45,250
43,850 42,450 50,875
$ 229,075
Total Annual
Debt Service
$ ‘56,460 55,060 53,660
52,240 50,800 98,460 95,220 101,800
$ 563,700
Total Annual
Debt Service
$ 26,515
25,785
25,045
29,213
28,281 27,344
26,406
25,469
$ 214,058
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CITY OF CARLSBAD
Notes to Combined Financial Statements, Cont hued
Schedule of 1966 General Obligation
Library Bonds, Debt Service to Maturity
Fiscal
Year -
19 84- 85
1985-86
1986-87 1987-88
1988-89
1989-90
1990- 9 1
1991 -92
TOTAL
Fiscal
Year
1984-85
19 85-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
TOTAL
Interest Interest Total Principal Total Annual
Due 3uly 1 Due 3anuary 1 Interest Due July 1 Debt Service
$ 3,150
2,812
2,475
2,138
1,800
1,462
1,013
562
$ 15,412 -
$ 3,150
2,812
2,475
2,138
1,800
1,462
1,013
562
$ 15,412 -
$ 6,300
5,624
4,950
4,276
3,600
2,924
2,026
1,124
$ 30,824 -
$ 15,000
15,000
15,000
15,000
15,000
20,000
20,000
25,000
$ 140,000
$ 21,300
20,624
19,950
19,276
18,600
22,924
22,026
26,124
$ 170,824
Schedule of 1967 Revenue Bonds
Carlsbad Building Authority, Debt Service to Maturity .
Interest Due Principal Due Total Annual
December 15 December 15 Debt Service
$ 12,600
11,550
10,237
8,925
7,612
6,300
4,987
3,412 1,837
$ 67,460
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$ 20,000
25,000
25,000
25,000
25,000
25,000
30,000 30,000
35,000
$ 240,000
$ 32,600
36,550
35,237
33,925
32,612
31,300
34,987
33,412
36,837
$ 307,460 -
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Schedule of 1969 Revenue Bonds
I Carlsbad Parking Authority, Debt Service to Maturity
Fiscal Tot a1 Pr i ricipal Total Annual
Year -
1 9 84 - 85
1985-86 1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1 9 93 - 94
1994- 95
19 95- 96
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
199 1-92
1992-93
1993-94
1 9 94- 95
19 95 -96
19 96- 97
1997-98
1998-99
1999-00
2000-01
Interest Due October 1 Debt Service
$ 136,925
130,675
121,225
11 1,775
102,250 92,725
83,200
70,400
57,600
44,800
32,000
16,000
$ 999,575
$ 50,000
75,000
75,000
75,000
75,000
75,000
100,000
100,000
100,000
100,000
125,000
125,000
$ 1,075,000
$ 186,925
205,675
196,225
186,775
177,250
167,725
183,200
170,400
157,600
144,800
157,000
141,000
$ 2,074,575
Schedule of 1981 Revenue Bonds Carlsbad Parking Authority, Debt Service to Maturity ,
Total Pr i ncival Total Annual
Interest Due Februarv 1
$ 117,600
114,400
1 10,400
106,400
101,600
96,800
92,000
86,000
80,000
74,000
66,000
58,000
50,000
42,000 32,000
22,000
12,000
$ 1,261,200
$ 40,000
50,000
50,000
60,000
60,000
60,000
75,000
75,000
75,000
100,000
100,000
100,000
100,000
125,000
125,000 125,000
150,000
$ 1,470,000
Debt Service
$ 157,600
164,400
160,400
166,400
161,600
156,800 167,000
161,000
15 5,000
174,000
166,000 158,000
150,000
167,000
157,000
147,000
162,000
$ 2,731,200
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Notes to Combined Financial Statements, Continued
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(8) Obligations Under Capital Leases
In 1981 the City entered into an agreement with the City of Oceanside to
lease the public parking area surrounding a regional shopping area.
the terms of the agreement, the City of Carlsbad agreed to pay an aggregate
amount of $700,040 including interest of 10%.
interest payments are to be $70,000 through 1991 and $1 annually for each
of the remaining years of a fifty year lease. The City's leasehold
interest of $430,152 has been recorded in the City's general fixed assets.
Under
The annual principal and
In 1978 the City participated with the City of Oceanside for purchase of an automated circulation system for their respective libraries.
leasehold interest of $102,025 is recorded in general fixed assets.
lease purchase requires annual payments of principal of $15,845 through
1986 with interest at 5 1/2 X per annum.
The City's
The
In 1981 the City entered into leases for use of certain data processing and
word processing equipment. The City's leasehold interests of $123,295 and
$72,790 for data processing and word processing equipment, respectively,
have been recorded in the general fixed asset group of accounts. The lease
agreement for data processing equipment requires payments of principal and
interest at 10% per annum of $31,176 per year through February 1987.
lease agreement for word processing equipment requires payments of
principal and interest at 10% of $18,564 per year through March 1986.
The
The following is a summary by years of future minimum lease payments under
capital leases (paid from the general fund) with the present value of
minimum lease payments at 3une 30, 1984:
Year Ending 3une 30 Total Lease Payments
1985 $1 32,500
1986 125,813
1987 101,464
1988 70,000
1989 70,000
Thereafter 140,000
639,7 77 Total minimum lease payments
Less amount representing interest 166,179
Present value of minimum lease payments $473,598
CITY OF CARLSRAD
Notes to Combined Financial Statements, Continued
(9) Retirement Plan
The City is a participant in the Public Employees Retirement System (PERS)
of the State of California covering all the City's permanent employees.
The total pension expense of the City for the current year was $1,450,009 for current and past service costs.
expenditures when paid and are funded by monthly contributions from the
City and employees to PERS. Contributions are based on rates set by PERS
based on certain actuarial assumptions, such as length of employment,
estimated salary rates, mortality rates, projected retirement benefits and
other factors. The actuarial cost method used is entry age normal. At
3une 30, 1983, the plan net assets attributed to the City for benefits
totaled $10,741,893 and the present value of the City's unfunded obligation
for prior service costs totaled $23,245 which will be funded through the
year 2000 from established contribution rates. The excess, if any, of the
actuarially computed value of vested benefits to City employees over
amounts available in the PERS pension fund is not determinable under the
PERS system of accounting.
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(IO) Excess of Expenditures over Appropriations
Expenditures exceeded appropriations in the following funds:
Excess of Expenditures
Appropriations Expenditures Over Appropriations
Special Revenue Funds:
Housing Authority -
Section 8 $ 789,982 $ 825,236 $ 35,254
Library A.V. Ins. --- 10,500 10,500
Capital Funds:
Redevelopment 132,411 145,905 13,494
(11) Fund Balances/Retained Earnings
The following is a summary of reserved and unreserved fund balances and
retained earnings:
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Notes to Combined Financial Statements, Continued I
Totals
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Governmental Fund Types (Memorandum Only)
Special Debt Capital June 30. June 30, General
Fund balances:
Reserved for prepaid expenses $ 43,500 Reserved for encumbrance 280,518
Reserved for inventory supplies 7,588 Reserved for advances to
other funds 4,181 Reserved for low and . moderate income housing -- -
Reserved for debt service ---
Reserved for payment of principal and interest ---
Reserved for working capital ---
Reserved for advances to
Carlsbad Redevelopment
Agency 569,766
Reserved for repayment of advances -- -
Designated for approved capital projects ---
Undesignated ---
HUD Equities ---
Unreserved:
Revenue
---
$1,229,326
35,951 -- -
3,306,948
( 148,111 )
55,360
Projects 1984
--- $ 43,500
$ 645,584 2,155,428
--- 7,588
135,198 139,379
--- 499,156 -- 4,500
--- 569,766
5,952,774 9,259,722
4,489,051 5,254,384 --- 55,360
1983
$ 93,945
783? 113
7 I 438
12,544
14,005
956,422
501,919
4,500
361,622
56,020
8,179,741
829,712
70,691
Total Fund Balances $ 905,553 $4,479,474 $1,582,034 $11,222,607 $18,189,668 $11,871,672
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Totals
Proprietary Fund Types (Memorandum only)
Internal %ne 30, June 30,
Enterprise Service 1984 1983
Retained Earnings (Deficit) :
Reserved for construction $ 727,075 --- $ 727,075 $ 678,590
Reserved for debt service 887,441 --- 88 7,441 887,441
Unreserved 5,221,483 (383,675) 4,837,808 3,114,065
Designated for approved
capital projects 817,016 --- 817,016 825,213
Total Retained Earnings (Deficit) $ 7,653,015 $(349,717) S7,303,298 $5,505,309
Reserved for claims -- - $ 33,958 33,958 ---
-- -- -
38
CITY OF CPRLSBAD
Notes to Combined Financial Statements, Continued
The following funds reported deficits in their respective fund balances
at 3une 30, 1984:
Redevelopment project (Capital Project Fund)
General liability self-insurance (Internal
Central garage (Internal Service Fund)
Service Fund)
Amount of Deficit
to Fund Balance
$ 425,929
309,152
49,603
( 12) Changes in Contributed Capital
Enterprise Funds
Water Sewer
Utility Enterprise Total -
Contributed capital, balance at beginning
Prior period adjustments, net (see
Beginning balance, as restated $2,423,086 F ixed as set cont r i but ions ---
Contributed capital, balance at end
of year $2,423,080 $18,880,825 $21,303,905
footnote 3) (2,504,145) (2,504,145) 16,376,680 18,799,760
12,727
of year $2,423,080 $16,389,407 $18,812,487
Internal Service Funds
12,727 '
z-ra -
Workers General Central
Compensation Liability Garage Total
Contrubited capital, balance at
Prior period adjustments (see
beginning of year $500,000 $700,000 $591,494 $1,791,494
--- 147,523 147,523
Beginning balance, as restated 500,000 700,000 739,017 1,939,017
footnote 3j ---
.150;000 Cash contributions --- 150;OOO ---
Fixed asset contributions --- 6,439 6; 439
Contributed caDital. balance at
end of year $850,000 $745,456 $2,095,456 -- - - $500,000
(13) Deferred Compensation Plan
The City has established a deferred compensation plan whereby City employ-
ees may elect to defer portions of their compensation in return for retire-
ment, disability and death benefits. lesser of $7,500 or 25% of a participant's "includable compensation", as
defined in the participation agreement. The City makes no contribution to
the plan. Plan assets were invested in a combination of deferred
Amounts deferred may not exceed the
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CITY OF CARLSBAD I
Notes to Combined Financial Statements, Continued
compensation options including short-term certificates of deposit, bond funds, stock funds, and government securities. At 3une 30, 1984, the
amount of the deferred compensation investments (and the resulting
liability recorded in the Agency Fund) was $324,443.
made upon the occurrence of the participant's termination, retirement,
death or total disability, and in a manner in accordance with the election
made by the participant. All City employees are eligible for plan
participation .
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Distributions are
( 14) Contingencies
(a) The Water Utility Fund of the City and Costa Real Municipal Water
District (the "District") are currently providing water services to most of the City under the terms of a basis of understanding negotiated in an effort to settle a law suit between the parties.
Such understanding provides for a functional allocation of responsibilities between the Water Utility Fund and the District with several significant issues to be resolved by 3oint Committee of the parties before a final comprehensive agreement is reached. As a
result of a final agreement, additional assets and/or liabilities may
be transferred among the parties.
In October 1983, the City of Carlsbad issued $20,000,000 of revenue
bonds to provide funds for purchase of loans collateralized by first
lien deeds of trust on single-family residences , including townhouses
and condominium units within the City.
broadening affordable housing opportunities in the City of Carlsbad.
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This activity is aimed at I
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The bonds are payable solely from payments made on the acquired loans. The bonds are collateralized by the loans and related first lien deeds
of trust (and any insurance payments with respect thereto) and certain reserve funds and other moneys in connection therewith (including investment income earned thereon). It is the City's opinion that these bonds are not payable from any other revenues or assets of' the City of Carlsbad, and neither the faith and credit nor the taxing
power of the City, the State of California or any political
subdivision thereof is pledged to the payment of the principal or
redemption price of or interest on the bonds. Consequently, the transactions of these revenue bond programs are not included in the
financial statements of the various funds and account groups of the City of Carlsbad.
(c) The City is a defendant in certain legal actions arising in the normal course of operations. In the opinion of management and legal counsel, any liability resulting from these actions will not result in a
material adverse effect on the City's financial position.
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CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(15) Advances To and From Other Funds
Advances to other funds Advances from other funds
Fund Amount Fund Amount
$ 4,180 Ge nerd 1 $5 73,946 Street Lighting - - - (Special Revenue Fund)
Redevelopment Project 569,766
TOTAL $5 73,946
(Capital Project Fund) -
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CITY OF CARLSBAD
General Fund Schedule of Revenues
Year ended %ne 30, 1984 ~__
Taxes: Property taxes Property tax reimbursements Sales and use taxes Transient lodging taxes Franchise taxes Real property transfer taxes Cigarette taxes Trailer coach in-lieu tax Total taxes
Licenses and permits: Vehicle licenses (in-lieu) Construct ion permits Business licenses License tax on new construction
Other Total licenses and permits
Intergovernmental: Grants Total intergovernmental
Charges for services: Zoning and subdivision fees
Sales of maps and publications Plan checking fees Engineering fees Library and parks 8 rec fees
Police service fees
Ambulance fees
Refuse collection fees
City property damage Environment a1 impact studies
Other Total charges for services
Fines and forfeits: Vehicle code fines Other Total fines and forfeits
Interest income
Miscellaneous: Reinbursed expenditures
Sale of property Rent s
Other Tot a1 miscellaneous
Total Revenues
kdget
$ 4,264,000
160,000
4,700,000
810,000
400,000
100,000
40,000
10,474,000
--e
800,000
290,000
500,000
1,590,000
---
- --
80,000
20,000
675,000
300,000
276,800
50,000
30,000
---
---
10,000
7,500
1,449,300
265,000
265,000
700,000
20,000
5,000
5,000
48 000
$1 4,5 56,300
---
-Rfixm
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Actual
$ 4,391,609
275,137
4,891,379
1,007,268
466,102
198,808
139,829
22,203
11,392,335
46,655
1,068,876
351,875
983,789
622
2,451,817
2,491 2,491
160,449
28,721
1,005,286 424,055
376,757
12,310
69,155
10,282
21,087
21,650
52,515
2,182,267
25 5,453 1,018
256,471
565,281
34,430
4,204
7,860
8 871
$16,906,027 ~
----Tfm -
Variance
F avo rab le (Unfavorable)
$ 127,609
115,137
191,379
197,268
66,102
98,808
139,829
( 17,797)
91 8,335
46,655
268,876
61,875
483,789
622
861,817
2,491 2,491
80,449
8,721 330,286
124,055
99,95 7
12,310
19,155
(19,718)
21,087
11,650
45,015
732,967
( 9,547 1 1 018
(134,719)
14,430
(7%) 2,860
(39 129)
,(a,529)
-7&m
$2,349,727
CITY OF CARLSBAD
General Fund I
Schedule of Expenditures
Year ended &ne 30, 1984
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General government: City Council
City Manager
City Clerk
Research /Analysis Group
City Attorney Finance
City Treasurer
Central Services
Data Processing
Purchasing
Insurance
Personnel
Planning
Community pr omot ion
Senior Citizens programs
Commun it y Assi st ance
Weed abatement
Contingencies
Capital improvements
Bu i 1 di ng ma in t e n anc e
Leases
Other
Total general government
Public safety:
Fire protect ion
Police protection
Building inspection
Civil Defense
Total public safety
Public works:
Ah in i s t r a t ion
Engineering
Streets
Maintenance
Building Maintenance
Total public works
Culture and recreation:
Parks and recreation
Library
Total culture and recreation
Total Expenditures
Ehdget
$ 93,509
219,091
10,443
229,235
155,829
265,821
4,018
367,537
156,325
80,361
68,046
186,167
391,624
45,000
37,825 17,100
45,723 28,232 21,263 283,585 70,000 48,295
2,825,029
2,296,744 3,27 7,27 2
7,165
6,042,943
35,315
842,266
1,204,042
106,748
40,573
2,228,944
1,654,354 1 ,132,114
2,786,468
$ 13,883,384
461,762
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Actual
$ 89,559
214,189
7,045
199,28 1
152,771
2 17,476
3,756
371,007
141,734 77,840
62,424 190,368 390,277 46,758 37,825 17,100 41,952 1,437 13,540
149,140
70,755
38,634
2,534,868
2,221,626
3,049,646
537 , 646
4,533
5,813,451
30,068
716,513
1,068,367
51,684 40,784
1,907,416
1,590,203
1,037,104
2,627,307
$1 2,8 83,042
Var i ance
Favor ab le
(Unfavorable)
$ 3,950
4,902
3,398 29,954
3,058
48,345 262
(3,4701 14,591
2,521
5,622
(4,201) 1,347
(1,758)
--e ---
3,771
26,795
134,445
(755) 966 1
290,161
7,723
75,118 227,626
2,632
229,492
( 75 , 884
5,247
125,753
135,675
55,064
(211)
321,528
64,151 95,010
159,161
$1,000,342
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Special Revenue Funds
Combining Balance Sheet
3une 30, 1984
Library Audio Visual In sur ance
Federal State
Gas Tax Grants Grants Street Lightina
Assets
ish and investments $1,006,986 $ 782 $ 660,989
?ce i va bles : Taxes -- - --- -- - Accounts -- - -- - ---
Accrued interest -- - --- 5,827
le from other governments --- --- --- *epaid expenses ---- --- ---
Total assets $1,006,986 $ 782 $ 666,816 --
Liabilities and Fund Balances
$ 362,895 $ 8,886 I
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$ 380,170 - $ 8,886
abilities:
ints payable $ 52,239 <tred wages payable ---
dvance from General Fund ---
Due to other funds -- -
Advances from other funds ---
Advances from other governments ---
Prepaid annual contributions ---
$ 27,273
1,552
4,180 ---
Total liabilities 52 , 239 --- 4,649
nd balances (deficit ) :
Reserved for
Reserved for Low and
Unreserved: Designated for approved capital projects 694,958 --- 1,697,224
Undesignated (158,954) $ 782 (1,042,384)
HUD fund equities --- --- ---
encumbrances 41 8,743 --- 7,327
Moderate Income Housing --a -- - ---
Total fund
balances (deficit) 954,747 782 662,167
2,210 ---
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344,955 $ 8,886
347,165 8,886
Total liabilities
and fund balances $1,006,986 $ 782 $ 666,816
-a 1_1
$ 380,170 $ 8,886
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Low and Moderate Income Housing
$ 35,951
- -- --- --- --- ---
Section 8
Housing Authority
$ 119,657
---
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48,926
59,798
$ 228,393
---
Totals
3une 30, 3une 30,
Community
Development Block Grant Revenue
Sharinq 1984 1983
$2,470,736 $ 63,771 $ 4,730,653 $ 4,885,714
17,275
12
5,827 48,926
59,798
12,291 173,646 60,961 38,817 56,005
$ 5,227,434 $ 35,951 $ 63,771 $ 4,862,491 - $2,470,736
L- a
$ 205,812
3,014 4,180
$ 403,432
2,806
98,583
12,544
---
$ 800 1,462 --- --- ---
98,940
71,071
172,273
760 ---
--- ---
55,360
56,120
$ 228,393
P
---
98,940 87,199
71,071 . 63,966
668,530
---
120.842 383,017 9
1,229,326
35,951
483,414 529,966 270,320
---
388,178
(715,569) ---
14,005
526,583 1,414,178 ---
3,306,943
55,360
(148,111)
4,440,155
(449,361
70,691
( 57,071 1 4,479,474 4,558,904 35,951
$ 35,951 -
2,470,727
$2,470,736 $ 4,862,491 $ 5,227,434 $ 63,771
46
CITY OF CARLSBAO
Special Revenue Funds I Combining Statement of Hevenues, txpenditures
and Changes in Fund Balances
Year ended 3une 30, 1984
Li brary
Audi o
Visual
Insurance I Federal Grants State Grants Street Li qhti ng Gas Tax
Revenues :
Taxes $ 521,624
Interest i ncome 130,553
Other 12,637
Intergovernmental --- $ 521,894
27,650
--- $ 200,158
66,275 ---
Total revenues 64 - 664,8 14 266,433
19,386 1 549,544
Expenditures: General government ---
Public works 45 3,494 Culture and recreation --- Capital projects ---
Welt are ---
Total expenditures 453,494
Excess (def I ciency
ot revenues over expenditures 21 1,320
Fund balances (deficit) at beginning of year as previously reported 1,286,427 Prior period adjustment ---
ii ,850
602,794
126,314 444,864
10.500 740,958 444,864 --- I I
1 64 104.680 (474,525)
--- --- 1 718 --- 1,136,692 --- 242,485 ---
Fund balances (deficit) at beg. of year as adjusted 1,286,427 Resi dual equity
transfers in (out) ( 543, OOO)
at end of year $ 954,747
Fund balances (def kit)
718 1,136,692 242,485 ---
--- I
$ 782 - $ 662,167 $ 347,165
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Revenue
Sharing
- --
$ 454,074
185,550 ---
Section 8
Housing
Authority
---
$ 796,207
13,698 ---
Community
Development
Block Grant
---
$ 324,657
6,308 ---
108,870
530,754
1,939,973 ---
1,939,973
--- - ~~
$2,470,727
809,905
--- --- --- ---
825,236
825,236
( 15,331 1
71,451 ---
71,451
---
$ 56,120
Low and
Income 3une 30, 3une 30,
Moderate Totals
Housing 1984
$ 19,795 $ 1,063,313
255,189
75,776
( 132,847) ---
21,946
14,005 ---
(132,847)
---
14,005
---
$ (57,071)
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1 ;775,O96
451,635
12,637
3,302,681
11,850
1,501,152
136,814
364,059 825,236
2,839,111
463,570
4,5 58,904 ---
4,5 58,904
( 543,000)
$ 35,951 $ 4,479,474 -
1983
$ 885,581 2,545,519
371,763 ---
3,802,863
33,197 1,028,030
26,559 724,764 727,155
2,539,705
1,263,158
3,165,120
130,626
3,295,746
---
$4,558,904
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Revenues :
Taxes
Interest income
Other
Year ended June 30, 1984
Total Revenues
Expenditures:
Public Works
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Residual equity transfers in (out)
Fund balance at end of year
Budget
$ 483,544 60,000 ---
~~
543,544
1,148,452
1,148,452
(604,908)
1,286,427
( 543,000 )
$ 138,519
49
Actual
$ 521,624
130,553
12,637
664.01 4
453,494
453,494
211,320
1,286,427
( 543,000)
Gas Tax Fund
Variance
$ 954,747
favorable
(unfavorable)
$ 38,080
70,553 12,637
121,270
694.958
694,958
816,228
$ 816,228
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CITY OF CARLSBAD
Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in
e. tuna uaiances - uudget and A ctuai
Year ended 3une 30, 1984
Federal Grants
Revenues: Interest income
- ___ __ -~ Variance favorable Budget Actual (unfavorable)
--- 64 64 - Total Revenues
Expenditures:
Culture and recreation Capital projects
Total Expenditures
Excess of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year I
--- 64 64 -
$ 718 - 718
$ 718 $ 782 ' - - 64 - $
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CITY OF CPRLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Bal ances - Budget and Actual
Year ended 3une 30, 1984
State Grants
Variance -
&Idget
Intergovernment a1 revenues $ 1,034,470 Interest income ---
Revenues:
Tot a1 Revenues 1,034,470
Expenditures: General government ---
Public Works 2,210,368
Culture and recreation 255,915
lot a1 Expenditures 2,466,283
Excess (deficiency) of revenues over expenditures (1,431,813)
Fund balance at beginning of year 1,136,692
Fund balance (deficit) at end of year $ (295,121)
51
Actual
$ 200,158
66,275
266,433
11,850
602,794
126,314
740,958
( 474,525
1 , 1 36,692
$ 662,167
favorable
(unfavorable)
$ (834,312) 66,275
( 768,037)
(1 1,850)
1,607,574
129,601
1,725,325
957,288
$ 957,288
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CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
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Revenues :
Interest Income
Total Revenues
Expenditures:
Culture and recreation
Total Expenditures
Excess of revenues
over expenditures
Year ended June 30, 1984
Library Audio Visual Insurance
Variance -
favorable
Budget Actual (unfavorable)
--- $ 19,386 $ 19,386
19,386 19,386
10,500 (IO, 500)
--- 10,500 ( IO, 500)
-- - 8,886 8,886
Fund balance at beginning of year --- ---
Fund balance at end of year
52
$ 8,886 -
CITY OF CMLSBAD
Special Revenue Fund Types
S_tattemenLoCRe~nus&xpencU.u~- in Fund Balances - Budget and Actual
Year ended 3une 30, 1984
Revenues : Taxes Interest income
Street Lighting
Variance -
f avorab le
f3udget Actual (unfavorable)
$ 468,000 $ 521,894 $ 53,894
4,000 27,650 23,650
Total Revenues 472,000 549,544 77,544
Expenditures : Public Works 492,614 444,864 47,750
Total Expenditures 492,614 444,864 47,750 Excess ( deficiency) of revenues
(20,6 14) 104,680 125,294 over expenditures
fund balance at beginning of year 242,485 242,485 ---
fund halance at end of year $ 221,871 $ 347,165 . $125,294
Icp -LI - _____1
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CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
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Revenues:
Intergovernment a1 revenues
Interest income
Total Revenues
Expenditures: Capital projects
Year ended &ne 30, 1984
Revenue Sharing
Variance -
favor able bdget Actual (unfavorable)
$ 500,000 $ 454,074 $ (45,926) --- 185,550 185,550
500,000 639,624 139,624
1 ,892,552 1 08,870 1,783,682
Total Expenditures 1 ,892,552 108,870 1,783,682
Excess (deficiency) of revenues over expend i tur ks (1,392,552) 530,754 1,923,306
Fund balance at beginning of year
Fund balance at end of year
1,939,973 1,939,973
$ 547,421 $ 2,470,727 '
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$1,923,306
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
F&J-e El- 1
Revenues :
Intergovernmental revenues
Interest income
Total Revenues
Expenditures:
Welfare
Total Expenditures
Deficiency of revenues
over expenditures
Fund balances at beginning of year
Year ended 3une 30, 1984
Section 8 - Housing Authority
Variance -
Fund balance at end of year
Budget
$ 754,850
20,000
774,850
789,982
789,982
(15,132)
71.451
$ 56,319
55
Actual
$ 796,207
13,698
809,905
825,236
825,236
(15,331)
71,451
$ 56,120
favorable
(unfavorable)
$ 41,357
(6,302)
35,055
( 35,254)
( 35,254)
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CITY OF CARLSRAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
bund Balances - Budget ana Actual
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Year ended &ne 30, 1984
Community Development Block Grant
Variance -
favor ab le
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hdget Actual (unfavorable)
Revenues:
Intergovernmental revenues $ 325,000 $ 324,657 $ (343) Interest income --- 6,308 6,308
Total Revenues 1 Expenditures: Capital projects
325,000 330,965 5,965
587,323 255,189 332,134
Total Expenditures 587,323 255,189 332,134
Excess (deficiency) of revenues over expenditures (262,323) 75,776 338,099
Deficit at beginning of year ( 132,847) ( 132,847) ---
Deficit at end of year il $ (395,170) $ (57,071)' $ 333,099
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I CITY OF CARLSBAO
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
1 A
Revenues: Taxes Interest
Total Revenues
Expenditures : Capital projects
Tot a1 Expenditures Excess of revenues over expenditures
Fund balance at beginning of year
Year ended 3une 30, 1984
Low and Moderate Income Housing Variance - favorable &Idget Actual (unfavorable)
Fund balance at end of year
$ 22,000 $ 19,795 $ (2,205) --- 2,151 2,151
22,000 21,946 (54)
22,000 21,946 (54)
14,005 14,005 ---
$ 36,005 $ 35,951 $ (54) - - -
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58
I CITY OF CMLSBAD
Debt Service Funds
Assets
Cash and investments (Note 5)
Taxes receivable Accrued interest receivable
3une 30, 1984
Library
Bonds
$ 22,868
--a ---
Total assets $ 22,868
Liabilities and Fund Balances
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balance:
Reserved for debt service Reserved for payment of bond principal and interest Reserved for working capital Unreserved
Total fund balances
Total liabilities and fund balances
59
$ 3,150 ---
3,150
19,718
$ 22,868 -
Sewer Bonds -
$ 159,236
1,942
$ 161,178
---
Parking Authority
$ 1,309,301
33,003
$ 1,342,304
$ 15,962 ---
145,216
$ 161,178
$ 446,631
3,000 892,673
1,342,304
$ 1,342,304
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Bui 1 ding
Authority
$ 74,796
$ 52,525 1,500 20,771
74,796
$ 74,796
Totals
3une 30, 3une 30,
1904 1983
$ 1,566,201 $ 1,440,051 --- 2,417
34,945 24,579
$ 1,601,146 $ 1,467,047
$ 19,112 $ 36 5 - -- 3.841
19,112 4,206
164,934 98,380
499,156 501,919 4,500 4,500 913,444 858,042
1,582,034 1,462,841
$ 1,601,146 $ 1,467,047
..p A -
60
CITY OF CARLSBAD I
Debt Service Funds
Combining Statement of Revenues, kxpenditures
and Changes in Fund Balances
Revenues:
Taxes
Interest income
Tot a1 revenues
Expenditures :
General government
Principal retirement
Interest and fiscal charges
Year ended 3une 30, 1984
Library
Bonds
$ 2,366
2,366
---
15,000
6,637
Tot a1 expenditures 21,637
Excess (deficiency) of revenues
over expend i tu r es (19,271)
Other financing sources (uses):
Operating Transfers in(out)
Tot a1 other financing sources (uses) ---
Excess (deficiency) of revenues
and other sources over expend- itures and other uses (19,271)
Fund balances at beginning of year Prior period adjustment (Note 3)
38,989 ---
Fund balances at beginning of year as adjusted 38,989
Fund balances at end of year
61
$ 19,718
_I_
Sewer
Bonds -
$ 109,295
7,915
117,210
- -- ---
31,385
31,385
85,825
---
---
85,825
59,391 ---
59,391
$ 145,216 -
Parking
Authority
$ 120,623
120,623
3,550
BO, 000
190,025
273,575
(152,952)
312,400
312,400
159,448
1,260,956 (78,100)
1,182,856
$1,342,304
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Building Authority
$ 7,232
7,232
941
15,000
20,000
35,941
(28,709)
36,000
36,000
7,291
103,505
( 36,000)
67,505
$ 74,796
Totals . -. ___
%ne 30, 3une 30,
1984 1983
$ 109,295 $ 113,940
138,136 141,843
247,431 255,783
4,491 3,175
115,000 185,000
243,047 252,147
362,538 440,322
(115,107) ( 184,539)
348,400 462,500
348,400 462,500
233,293 277,961
1,462,841 1,164,880 (114,100) ---
1,348,741 1,184,880
$ 1,582,034 $1,462,841
62
CITY OF CARLSBAD
Debt Sevice Fund Types Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Revenues: Interest income
Total Revenues
Expenditures:
Debt service expenditures : Principal retirement Interest and fiscal charges
Year ended 3une 30, 1984
Library Bonds Variance -
hdget
$ 4,000
4,000
15,000 6.976
Tot a1 Expenditures Deficiency of revenues Over expenditures
Fund balance at beginning of year
Fund balance at end of year
21,976
(17,976)
38,989
$ 21,013
63
Actual
S 2.366
2,366
15,000 6,637
21,637
( 19,27 1
38,989
$ 19,718
f avo rab le (unfavorable)
$ (1,634)
(1,634)
---
339
339
(1,295)
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I
CITY OF CARLSEMD
Debt Service ' Fund Types
Statement of Revenues, Expenditures, and Changes in
d Ralances -
I
Year ended June 30, 1984 I
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Revenues :
Taxes
Interest income
Total Revenues
Expenditures:
Debt service expenditures:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (deficiency ) of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
Sewer Bonds
Budget
$ 100,000
10,000
110,000
---
31,385
31,385
78,615
59,391
$ 138,006
64
Variance -
favorable
Actual (unfavorable)
$ 109,295 $ 9,295
7,915 (2,085)
117,210 7,210
31,385 ---
31,385
85,825 7,210
59,391
$ 145,216 $107,210 - P
CITY OF CARLSBAD
Debt Service Fund Types
Fund Balances - Budget and Actual Statmmh+Rewmies L” rvpe&Hiwes 9
Year ended 3une 30, 1984
Revenues:
Inters t income
Parking Authority
Variance -
favorable
Budget Actual (unfavorable)
$ 120,623 $ 120,623 $ ---
Tot a1 Revenues 120,623 120,623 ---
Expend i tu res : General government 3,550 3,550 ---
Principal retirement 80,000 80,000 ---
Interest and fiscal charges 190,025 190,025 ---
Debt service expenditures:
Total Expenditures
Deficiency of revenues over
expenditures
Other f inancing sources: Operating Transfers in
273,575 273,575
(152,952) (152,952) ---
--- 312,400 31 2,400
Total other financing sources 312,400 3 12,400 ---
Excess of revenues and other sources over expenditures and other uses 159,448 159,448 ---
Fund balance at beginning of year 1,260,956 1,260,956 ---
Prior period adjustment (Note 3) --- ( 78,100) (78,100)
Fund balance at the beginning of year
Fund balance at end of year
1,260,956 1,182,856 (78,100)
$1,420,404 $ 1,342,304 $(78,100)
65
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CITY OF CARLSBAD
Debt Service Fund Types Statement of Revenues, Expenditures, and Changes in
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I--R=’- -
Year ended 3une 30, 1984 I
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1
Ruilding Authority
Variance - favorable
(unfavorable) Actual
$ 7,232
7,232
Budget
$ 7,232
7,232
Revenues : Interest income $ ---
Total Revenues ---
Expenditures:
General government Debt service expenditures:
Principal retirement Interest and fiscal charges
941 941
20,000
15.000
20,000 15,000
35,941
(28,709)
36,000 .
36.000
Total Expenditures Deficiency of revenues over
expenditures
Other finances sources: Operating Transfers in
35,941
( 28,709)
36 , 000
36,000
---
Total other financing sources ---
Excess of revenues and other
sources over expenditures and
other uses 7.291 7,291 ---
Fund balance at beginning of year
Prior period adjustment (Note 3)
103,505 103,505
(36,000) (36,000) ---
Fund balance at beginning of year
as adjusted (36,000) 67,505
$ 74,796
103,505
$ 110,796 Fund balance at end of year $( 36,000)
66
-~
CITY OF CARLSBAD I
Capital Projects Funds Combining Balance Sheet
3une 30, 1984
Capital Construct ion
Assets
Cash and investments (Note 5)
Accounts receivable
Accrued interest receivable
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable Accrued wages payable
Advances from other funds
Total liabilities
Fund balances ( deficit) : Reserved for encumbrances
Reserved for repayment of advances Unreserved: Designated for approved capital projects
Undes ignated
Total fund balances (deficit)
Total liabiltiies and fund balances ( deficit)
~ ~~
$ 5,655,396
$ 645
645
527 ,907 ---
3,746,178
1,380,666
5,654,751
$ 5,655,396
Public Fail it ies
Construct ion
$ 4,278,826
300 --- $.
300
117,677
2,131,596
2,029,253
4,278,526
$ 4,278,826
67
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Planned Local Drainage Redevelopment Facilities Project
Totals June 30, 3une 30,
1984 1983
Br is t ol Cove Park Development
$ 5,471,452
5,068
32,227
$ 5,508,747
$ 50,899 $ 412,560 $ 145,896 $ 11,795,377 --- -- - -- - --- --- --- --- ---
$ 50,899 $ 412,560 $ 145,896 $ 11,795,377 - - L- - $ 1,251,800
1
I
$ 120 $ 1,065 $ 53
1,939 ' 1,939 714
569,766 569,766 361,622
571,825 572,770 362,389
---
135,198
645,584
135,198
139,854
56,020
5,952,774 3,739,586
4,489,051 1,210,898 75,000
1,176,800
---
(561,127) 412,560 50,899
41 2.560 50.899 ( 425,929) 11,222,607 5,146,358 1 ,25 1 ,800
$ 1,251,800 $ 50,899 - $ 412,560 $ 145,896 $ 11,795,377 $ 5,508,747 -
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CITY OF CARLSBAD
Capital Projects Funds
and Changes in Fund Balances
C& w-- 9 Eq-2 ? -
Revenues :
Taxes Charges for services
Interest income Miscellaneous Revenue
Total revenues
Year ended 3une 30, 1984
Capital
Construct ion
Expenditures :
Police and Utility Service Center Police Firing Range Fire Station #5 land aquisition
Community Development Center La Costa Canyon Park
Street additions and improvements
Library addition Storm Drains
Longard Tube
Redevelopment area project
Other construction projects Interest and fiscal charges
---
$ 171,043
171,043
47,822 25,080
---
150,897 ---
100,212 37,032
Total expenditures 361,043
Excess (deficiency ) of revenues
over expenditures Other financing sources:
( 190,000)
Operating transfer in ---
Excess (deficiency) of revenues and other
sources over expenditures ( 190,000)
Fund balances (deficit) at beginning of year 2,409,206 Prior period adjustment (Note 3) ---
Fund balances at beginning of year as adjusted 2,409,206
Residual equity transfers in 3,435 , 545
Fund balances (deficits) at end of year $5,654,75 1
69
Public Facilities
Construction
$ 2,305,262
251,570
2,556,832
132,254
2,424,578
2,424,578
1,853,948
1,853,948
$4,278,526
t-
Planned
Loca 1 Drain age Redevelopment Facilities Project
Totals
3une 30, 3une 30, Park Bristol Development Cove 1984 1983
---
$ 121,392
29,933
$ 79,179 $ 79,179 $ 56,020 --- 2,565,684 1,038,633
8,639 387,040 185,094 --- 310,243 ---
- -9 ---
$ 139,030 ---
139,200 --- 92,833 $ 4,065
151,325 87,818 3,342,146 1,279,747 4,065 371,063
96,783 25,080 28,227 ---
37,574 --- e-- ---
7,716 36,541 120,689 88,157 13,867
77,149 126,571
20
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182,076 23,887
37,032 112,093
100,212
112,093 ---
33,812 33,812
145,905
-
508,284 639,202
(58,087) 2,702,944 771,463 151,325 4,065 371,063
---
( 58,087) 2,702,944 823,533
(305,602) 5,146,358 4,3 22,825 ( 62,240) (62,240) -5-
(367.842) 5.084.118 4.322.825
151,325
261,235
4,065
46,834
371;063
880,737 ---
46,834 --- 261,235 --- 880,737 - --
$1,251,800 $50,899 $ 412,560 $(425,929) $ 11,222,607 $ 5,146,358
70
CITY OF CARLSBAD
Capital Projects Fund Types
Statement of Revenues, Expenditures, and Changes in
Fd-es - Budget and Actual
Year ended 3une 30, 1984
Capital Construction
Revenues :
Miscellaneous revenue
Total revenues
Expenditures:
Capital projects
Total expenditures
Deficiency of revenues over
expenditures
Fund balance at beginning of year
Residual equity transfers in
Fund balance (deficit) at end of year
&Idget
s ---
Actual
s 171.043
2,852,775
2,852,775
(2,852,775)
2,409,206 ---
$ (443,569)
71
171,043
361,043
361,043
( 190,000)
2,409,206
3,435,545
$ 5,654,751
Variance -
favorable
(unfavorable)
$ 171,043
171.043
2,491,732
2,491,732
2,662,775
3,435,545
$ 6,098,320
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CITY OF CMLSBAD
Capital Projects Fund Types
Bateme--
Fund Balances - Budget and Actual
Year ended 3une 30, 1984
Public Facilities Construction
Variance -
Revenues:
Charges for services
Interest income
Budget
$ 2,000,000
Total Revenues 2,000,000
Expenditures:
Capital projects 2,264,446
Total Expenditures 2,264,446
Excess (deficiency) of revenues
ove r ex pend i tu res (264,446 1
Fund balance at beginning of year 1,853,948
Fund balance at end of year $ 1,589,502
Actual
$ 2,305,262
251,570
2,556,832
132,254
132,254
2,424,578
1,853,948
$ 4,278,526
f avo rab le
(unfavorable)
$ 305,262
251,570
556,832
2,132,192
2,132,192
2,689,024
$ 2,689,024
CITY OF CARLSBAD
Capital Projects Fund Types
-LtilteUwW Fund Balances - Budget and Actual
Year ended June 30, 1984
Park Development
Variance -
Revenues: Charges for services Interest income
Miscellaneous revenue
Tot a1 Revenues
Expenditures: Capital projects
Total Expenditures Excess of revenues over expenditures
fund balance at beginning of year
Fund balance at end of year
Budget
3 17.000
---
Actual
$ 139,030
92,833
139,200
371,063
---
favor ab le (unfavorable)
$ (177,970)
92,83 3
139,200
54,063
317,000
880,737
$1,197,73
73
371,063
880.737
54,063
---
$ 1,251,800 $ 54,063
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CITY OF CARLSBAD
Capital Projects Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Year ended %ne 30, 1984
Revenues: Interest income
Total Revenues
Expenditures: Capital projects
Total Expenditures
Excess of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year
74
Bristol Cove Variance -
favor ab le &dget Actual (unfavorable)
$ --- $ 4,065 $ 4,065
--- 4,065 4,065
--- 4,065
46,834 46,834
4,065
$ 4,065 - $ 46,834 $ 50,899 - -
CITY OF CARLSBAD 1
Capital Projects Fund Types
Statement of Revenues, Fxp enditures, and Changes in
Fund Balances - Budget and Actual
I
I
Year ended 3une 30, 1984
Planned Local Drainage Facility
Variance -
favorable
Budget Actual (unfavorable)
Revenues:
Charges for services
Interest income
Tot a1 Revenues . Expenditures:
Capital projects
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
$ 180,000
1 80,000
180,000
261,235
$ 441,235
I $ 121,392 $ (58,608) 29,933 29,933
I 151,325 (28,675)
151,325 (28,675)
261,235 ---
7 I $ 412,560 ' $(28,675) -
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CITY OF CPRLSBAO
Capital Projects Fund Types
Statement of Revenues! Exp enditures, and Chanaes in
Fund Balances - Budget and Actual
Year ended &ne 30, 1984
Redevelopment Project
Variance -
Revenues :
Taxes
Interest income
Total Revenues
Expenditures:
Capital projects
Debt serv ice expend1 tu res :
Interest and fiscal charges
Total Expenditures
Deficiency of revenues Over
expenditures
Fund deficit at beginning of year
Prior period adjustment (Note 3)
Fund deficit at beginning of year
as adjusted
Fund deficit at end of year
&Idget
$ 88,000 ---
88.000
132,411
---
132,411
(44,411)
(305,602)
( 305,602)
$ (350,013)
76
Actual
$ 79,179
8,639
87,818
112,093
33,812
145,905
( 58,087)
(305,602) '
( 62,240)
( 367,842)
$ (425,929)
favorable
(unfavorable)
$ (8,821) 8,639
( 182)
20,318
( 33,812)
(13,494)
(13,676)
( 62 , 240)
( 62,240)
$ (75,916)
CITY OF CARLSBAD
Enterprise Funds
Combininq Balance Sheet
June 30, 1984 --t
Totals
%ne 30, June 30,
1984 1983
Water
Utility Sewer
Assets:
$ 2,481,025 Cash and investments (,.ate 5) $ 5,329,441 $ 3,426,872
Receivables:
Accounts
Accrued interest Inventory, at cost Prepaid expenses
858,229 202,561
7,624
1.840
--- 1,060,790 452,199
28,083
112,402 '1 75,538
4,195,094
97,671
4,552
3,441,477
105,295 6,392
Total current assets: 3,060,441 6,501,918
R es t r i c t ed asset s :
Cash & investments (Note 5) 618,525 Accrued interest ---
Total restricted assets: 61 8,525
518,525 --- 556,351 10,703
567,054 61 8,525
Investment in sewage treatment
P aci 1 i ty 12,998,980 12,998,980 ---
Property, plant and equipment (Note 6): Land and water rights 231,956 Bui 1 dings 37,964
Wells, reservoirs, and dams 1,289,853 Transmission & distrib. lines 4,022,304
Filters and pumps 147,349 Fire hydrants 364,969
Equipment and vehicles 184,476
Construction in progress 72,195
Total property, plant and
Structures and improvements -e-
Sewers, sewer lines and wells ---
Fire protection service 5,759
equipment 6,356,825
227,250 459,206
37,964
37,948
1,289,853
4,022,304
4,420,783
147,349
364,969
588,938
2,676,618
5,759
231,956 37,964
2,120,747
1,289,853
4,022,304
6,001,567
147,349
364,969
1,437,640
11,220,165 5,759
37,948
4,420,783
404,462
2,604,423
7,694,s 66 14,051,691 26,8 80,27 3
Less accum. depreciation
Net property, plant
( 1 ,976,114)
and equipment 4,380,711
Total assets $ 8,440,713
LI- -
(1,542,839) (3,518,953) ( 3,341,432)
6,152,027 10,532,738 23,538,841
$30,652,161 $28,300,989
I_ - $ 22,211,448
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Water Utility
Liabilities:
Current liabilities (payable from current assets) :
Accounts payable $ 463,786 Accrued wages payable 7,334 Deposits payable 88,512
Total current liabilities
(payable from current assets) 559,632
Current liabilities (payable from restricted assets): Accrued interest 28,438 Current portion of revenue bonds payable 125,000 Total current liabilities (payable from restricted assets) 153,438 Total current liabilities 713.070 Long-term liabilities (Note 7) : Revenue bonds payable (net of unamortized discount of $7,404
and current portion) 894,596 Deferred revenue ---
Total liabilities 1,607,666
Contributed capital 2,423,080 Retained earnings:
Reserved for construction 615,540
Reserved for debt service 887,441
Unreserved:
Fund Equity:
Reserve for inventory supplies ---
Designated for approved
capital projects 66,253 Undesignated 2,840,733
Total retained earnings 4,409,967
Total fund equity 6,833,047
Total liabilities and fund equity $8,440,713 -
Sewer
$ 10,033
5,182
15,215
---
15,215
2,563,778
2,578,993
16,389,407
111,535
7,625
---
750,763
2,373,125
3,243,048
19,632,455
$ 22,211,448
2 -
Totals
3une 30, June 30, 1984 1983
$ 473,819 $ 320,929
12,516 4,502
88,512 78,719
574,847 404,150
28,438 ---
125,000 125,000
153,438 125,000
728,285 529,150
894,596 893,362
4,186,659 1,422,512
2,563,778 ---
18,812,487 21,303,905
727,075 678,590
887,441 887,441 7,625 ---
81 7,016 825,213
5,213,858 3,183,328
7,653,015 5,574,572
26,465,502 26,878,477
$30,652,161 $28,300,989
-L -
CITY OF CARLSBAD
Enterprise Funds Combininq Statement of Revenues, Expenses and Chanqes in Retained Earnings 4-
Year ended 3une 30, 1984 I
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Totals %ne 30, 3une 30, Water Utility 1984 1983 Sewer
Operating revenues:
Metered water sales
Sewer service charges
Sewer construct ion fees
Other charges for services
$1,309,379
---
104,953
---
$1,160,834
1,799,010
24,484
1,160,834 1,799,010
129,437
961,217
657,370
88,826
Total operating revenues 1,414,332 2,984,328 4,398,660 3,313,615
Operating expenses: Personnel services Office expenses
Repairs and maintenance Professional services Insurance
Purchased water
Loss on disposal of property
Sad debt expense Depreciation and amortization
283,886
2,950 1 30,663
599,986 5,232 ---
--e ---
118.744
439,508
48,716
230,986 38,164 13,099 577,081 16,092
56,021
137,506
723,394 51,666
361,649
638,150 18,331 577,081 16,092
56,02 1
256,250
752,608 20,908
273,338
537,524 102,322
926,347 --- ---
1 59,396
Total operating expenses 1,557,173 1,141,461 2,690,634 2,772,443
Operating income (loss) ( 142,841) 1,700,026 541,172 1,842,867
Non-operating revenues ( expenses): Interest income 258,232
Interest expense and fiscal
agent fees ( 56,875)
Total non-operating revenues (expenses) 201,357
145,443 403,675 306,198
( 56,875) ( 64,492)
346,800 241,706
Net income 1,988,310 2,046,026 58,516 782,878
Retained earnings at beginning
of year 4,351,451
Prior period adjustment (Note 3) ---
Retained earnings at beginning
of year as adjusted 4,351,451
Retained earnings at end of year $4,409,967
4,791,694 --- 5,5 74,572
31,617
1,223,121
31,617
1,254,738 5,606,189 4,791,694
$3,243,048 d $ 7,653,015 $ 5,574,572 -
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CITY OF CARLSBAD
Enterprise Funds
- --==ion
Year ended 3une 30, 1984
Water Utility Sewer
Sources of working capital:
0 pera t ions Net income $ 58,516 $1,988,310
Items not requiring working capital: Depreciation and amortization 137,506 1 18,744 Loss on disposal of property 16,092 ---
Working capital provided by
oper at ions 212,114 2,107,054
Contribution from other funds --- 12,727
Total sources of working capital 212,114 2,119,781
Uses of working capital:
Acquisition of property, plant, and
Decrease in long-term revenue bonds
equipment 11,270 25,465
payable --- ---
Reduction of deferred revenue --- 136,000
assets and related liabilities 23,033 --- Net increase (decrease) in restricted
Total uses of working capital 34,303 161,465
Net increase in working capital $177,811 $1,958,316 - - -.cI
Elements of net increase (decrease) in
unrestricted working cap1 tal:
Cash and cash equivalents $ 106,885 $1,795,684 Accounts receivable 447,136 161,455
Inventory (14,731) 7,624
Prep a id ex pens es (38) (169,108)
Accounts payable (325,441) 172,551
Accrued wages payable (7,334) (680)
Accrued interest receivable (18,873) (9,210)
Deposits payable ( 9,793) ---
Net increase in working capital $ 177,811 $1,958,316
IIP .c.Lil- i
Totals
3une 30, 3une 30,
1984 1983
256,250 159,396
16,092
2,319,168 942,274
12,727 174,115
2,331 ,895 1,116,389
36,735 355,324
23,033 (809,244)
195,768 ( 338,920)
$2,136,127 $1,455,309
$1,902,569 $1,500,110
608,59 1 (10,961
12,117 (28,083 1
(7,107) 6,970 (169,146) 170,221
(152,890) (221,985
( 8,014) 7,782
( 9,793) (8,945)
80
I CITY ff CPRLSBAD
Internal Service Funds
%lmtxf-hm-
3une 30, 1984
General I Liability Totals Workers ' self Central 3une 30, &ne 30, Compensation Insurance Garage 1984 1983 1
Assets
Cur rent assets: Cash and cash equivalents $ 748,004 Accrued interest receivable ---
Total current assets 748,004
Property and equipment: Machinery and equipment ---
Less accumulated depreciation ---
Net property and equipment
Total assets $ 748,004
Liabilities and Fund Equity
Current li ab11 i t ies: Accounts payable Accrued wages payable Estimated claims payable
Tot a1 current 11 abilities
Total liabilities
Contributed capital: Contributed from Other Funds
Retained earnings (deficit): Reserved
Unreserved
Total retained earnings (deficit)
Total fund equity
Total liabilites and fund equity
~ ~~~
$ 7,082
231,884
238,966
238,966
500,000
---
---
9,038
9,038
509,038
$ 748,004
$ 799,381 $ 192,312 $1,739,697 $1,463,870 --- 643 643 7,365
799,381 192,955 1,740,340 1,471,235
--- 1,350,218 1,350,218 1,308,296 --- ' (761,657) (761,657) (716,802)
--- 588,561 588,561 591,494
$ 799,381 $ 781,516 $2,328,901 $2,062,729
$ 3,007 $ 80,801 $ 90,890 $ 36,643 --- 4,862 4,062 4,212
255,526 --- 487,410 299,643
258,533 85,663 583,162 340,498
258,533 85,663 583,162 340,498
$ 850,000 745,456 2,095,456 1,791,494
33,958 33,958 ---
(343,110) (49,603) (383,675) (69,263)
( 309,152) (49,603) (349,717) (69,263)
540,848 695,853 1,745,739 1,722,231
$ 799,381 $ 781,516 $2,328,901 $2,062,729
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CITY OF CARLSBAD
Internal Service Funds
and Changes in Retained Earnings
-_____ Combining Statement of Reve nues. EXD . enses
Year ended June 30, 1984
Ge ner a1
Liability Totals Workers ' self Central 3une 30. 3une 30. Compensation Insurance Garage 1984 1985
0 per at ing revenue:
Charges for services Reimbursed expenditures $ 714,279 $ 714,279 $ 526,680 --- 321,648 326,906
714,279 1,035,927 853,586
--- --a
$ 228,148
228,148
$ 93,500
93,500 Total operating revenue
Operating expenses:
Personnel services
Fuel
Office expense Supplies and parts Repairs and maintenance Claims expense Depreciation Other operating charges
18 8,5 54 187,316 1,246 72,137 77,208
145,452 2,784
188,554
187,316
1,246
72,137
77,208 548,191 145,452 2,784
1 , 322,888
161,625
19 8,094
5 60
84,820
54,804
402,854
2,973
905,730
---
Total operating expenses 333,315
(105,167)
314,876 674,697
Operating income ( loss) ( 221,376) 39,582 (286,961) (52,144)
Non-operating revenues Interest revenue Sale of property 63,203 --- 62,057 10,636 135,896 98,793 18,134 18,134 5,764 ---
Tot a1 non-operat ing
revenues 63,203 62,057 28,770 154,030 104,557
Income ( loss) before operating transfers (41,964) (159,319)
---
68,352 (132,931) 52,413
Operating transfers in
Net income ( loss) (159,319) 68,352 (132,931) 67,966
Retained earnings ( deficit) at beginning of year (149,833) 29,568 ( 69,263 ) ( 1 37,Z 29 51,002
Prior period adjustment (Note 3) --- ---
Retained earnings (deficit) at
Retained earnings (def icit) at
beginning of year as adjusted 51,002
end of year $ 9,038
(149,833)
$ (309,152)
(1 17,955) (216,786) ( 1 37,229:
$ (49,603) $ (349,717) $ (69,263
9--
82
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Changes in Financial Position
Year ended 3une 30, 1984
General
Liability Totals Workers ' Self Central 3une 30, 3une 30,
Compensation Insurance Garage 1984 1983
Sources of working capital:
Operat ions : Net income (loss) $ (41,964) $ (159,319) $ 68,352 $(132,931) $ 67,966
Items not requiring working
Less gain on sale of property --- --- (18,134) (18,134) ---
Depreciation --- --- 145,452 145,452 --- cap i t a1 :
Working Capital provided by operations (41,964) (159,319) 195,670 (5,613) 67,966
Contributions from other funds --- 150,000 6,439 156,439 891,494
Proceeds from sale of property -- - --- 36,952 36,952 ---
Total sources of working capital (41,964) (9,319) 239,061 187,778 959,460
Uses of working capital: Acquisition of fixed assets --- --- 161,337 161,337 591,494
Total uses of working capital --- 161,337 161,337 591,494
Net increase (decrease) 1 n
working capital $ (41,964)
Elements of net increase (decrease)
in working capital: Cash and investments $ 73,987
Accrued interest receivable (5,328) Estimated claims payable (105,741 )
Accounts payable (4,882) Accrued wages payable --- Due to other funds ---
Net increase (decrease) in working capital $ (41,964) -
$ (9,319) $ 77,724
$ 71,674 $ 130,166
(2,037) 643 ( 82,026) ---
3,070 (52,435) --- (650) --- ---
$ (9,319) $ 77,724
83
$ 26,#1 $ 367,966 -
$ 275,827 $ 484,374
(6,722) 3,142
(187,767) (92,082)
(54,247) (35,653)
(650) (4,212) --- 12,397
$ 26,441 $ 367,966 -
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CITY OF CARLSBAD
Agency Funds
- --__ Combining Statement of Changes in Assets and Liabilities
Year ended 3une 30, 1984
Balance
3uly 1, 1983
Deferred Compensation Agency Fund
Assets
Balance
Additions Deductions %ne 30, 1984
Cash and investments (Note 5) $ 483,633
Liabilities
Deferred compensation payable
lccounts payable
Deposits payable
Tot a1 1 i ab i 1 it i es
- --
$ 8,235 475,398
$ 483,633
Cash and investments
Accrued interest receivable
Accounts receivable
Total assets
Liabilities
Accounts payable Deposits payable
Total liabilities
$ 386,084 --- ---
$ 386,084
---
$ 386,084
$ 386,084
$ 10,569,283 $ 10,728,473 $ 324,443
P
$ 324,443 $ $ 324,443 --- 8,235 ---
10,244,840 10,720,238 ---
$ 10,569,283 $ 10,728,473 $ 324,443 -
$ 4,355,480 $ 2,677,003 $ 2,064,561
81 0 81 0 ---
70 70 ---
$ 4,356,360 $ 2,677,883 $ 2,064,561
$ 30,859 $ 30,859 ---
4,325,501 2,647,024 $ 2,064,561
$ 4,356,360 $ 2,677,883 $ 2,064,561
(Continued)
Contractors Deposits Agency Fund
Assets -
CITY of CARLSBAD 1
.-
Combining Statement of Changes in
Assets and Liabilities, continued
Miscellaneous Deposits Agency Fund
Year ended 3une 30, 1984
Assets
Cash and investments (Note 5)
,4ccrued interest receivable
Accounts receivable
Total assets
Liabilities
Accounts payable
Deposits payable
Total liabilities
Totals - All Aqency Funds
Assets
Cash and investments (Note 5)
Accrued interest receivable
Accounts receivable
Total assets
Balance
3uly 1, 1983 Additions Deductions %ne 30 198 3
$ 844,891
810
70
$ 845,771
$ 30,859 814,912
$ 845,771
$1,714,608
810 70
$1,715,488
Liabilities
Deferred compensat ion payable
Accounts payable
Deposits payable
Total liabilities
---
$ 39,094 1,676,394
$1,715,488
--- $ 30,859 --- 814.912
$ 14,924,763 $ 14,250,367 81 0 1,620
70 140
$ 14,925,643 $ 14,252,127
4
$ 324,443 ---
30,859 $ 69,953 14,570,341 14,182,174
$ 14,925,643 $ 14,252,127 -
---
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I $2,389,004 ---
-- $2,38 9,004
$ 324,443 1 ---
$2,38 2’064’561 9,004 I
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Statistical Sect ion
86
CITY OF CARLSBAD
General Expenditures by Function
Last Ten Years
General Public
Year (Memo Only) Government Safety
(1) Fiscal Total
1974-75 $ 4,841,800 1,463,821 1,458,573
1975-76 5,540,958 1,660,069 1,561,812
1976-77 6,916,158 2,280,639 1,869,808
1977-78 8,608,080 2,767,513 2,592,993
2 , 634 , 839 "8 -79 9,566 , 353 3 , 3 14 , 694
m-80 io, 958,699 3, i 12,025 3,058,443
1980-81 13,837,197 4,547,215 3,407,025
1981-82 14,329,047 2,849,059 4,888,849
1982-83 14,955,142 2,272,174 5,285,609
1983-84 16,084,691 2,551,209 5,813,451
(3) Culture Debt (4) Public
Works Recreation We1fare")Service
1,196,512
1,443,009
1,523,376
1,981,274
2,3 14,667
2,495,741
2,868,460
3,062,434
3,660,043
3,772,627
569,791
725,928
1,095,120
1,122,003
1,161,115
1,599,729
2,261,888
2,732,343
2,573,014
2,764,121
153,103
150,140
147,Z 15
144,297
141,038
.544,597 148,164
608,009 144,600
650,202 146,160
727,155 437,147
825,236 358,047
Includes General, Special Revenue, and Debt Service funds. (1)
(2)The City assumed responsibility for the Carlsbad Housing Office in 1979-80.
(3)In 1982-83, the City adopted the entity concept of reporting.
the Debt Service Expenditures to increase due to the inclusion of the City's
Building and Parking Authorities Lease Revenue Bond payments.
special revenue to an enterprise fund. Prior figures have not been restated
to remove sewer operation expenditures. This figure also includes the cost
capital projects paid for by special revenue funds.
This causes
(4)Durina 1982-83, the City converted the sewer operation activity from a
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GENERAL EXPENDITURES BY FUNCTION.
1983-04
CULNRE/REC 17.3%
PUBLIC WKS 23.5% 3.8
INCLUDES GENERAL,SPECIAL
REVENUE AND DEBT SERVICE FUNDS ONLY.
0
GEN GOVT 16.0% 2.6
WARE 4.9%
0.8
DEBT SEW 2.5% 0.4
PUBLIC SAm 35.m 5.8
VALUES ARE IN MILLION DOLLARS
GENERAL EXPENDITURES BY FUNCTION
TOTAL EXPEND ITURES - LAST TEN YEARS
MILLION DOLLARS 20 I 1
15
10
5
0 74-75 75-76 78-77 77-78 78-79 79-80 80-81 81-02 82-03 83-04
FISCAL YEAR
INCLUDES GENERAL.SPECIAL REVENUE AND DEBT SEW. FUNDS
88
Fiscal Year Total
1974-7s $ S,689,159
1975-76 6,964,649
1976-77 0,466,866
1977-78 10,362,623
1978-79 9,015,129
1979-80 12,305,902
1980-81 14,507,827
1981-82 16,299,152
1982-83 17,034,503
1983-84 20,456,139
CITY OF CARLSBAD
General Revenue by Source
Last Ten Years
(1)
Property Taxes
2,37S, 319
2,894,098
2,923,710
3,484, SO4
1,633,938
2,61S,181
3,344,171
4,193,866
4,393,176
4,696,862
Sales Taxes
939,721
1,118,387
1,402,841
1,967,968
2,389,832
2,969,586
3,302,134
3,941,152
3,974,732
4,891,379
Franchise Taxes
54,818
78,254
96,818
111,271
141,185
175,257
250.9 10 1
288,9S6
358,228
466,102
Other Taxes
S52,88S
731,747
1,064,015
1,202,799
1,4S1,79S
1,526,547
1,61S,950
1,347,202
1,9S0,631
2,s 10,600
Includes General, Special Revenue, and Debt Service funds. (1)
-- --.--.---- TOTAL GENERAL REVENUE PROPERTY TAX AX SALES TAX REVENUE UZTTENYEARS LAsTlENYEAlzs Wa 0 mh w -
I MILLION WLURS
I I I I I I I I I
YI I I I 1 I I 1- I I I 1 I I I /I I I I I 1 1 1x1 I I 1I 1 If I I 1 I I /I I I I I I I I YI I I I
1
MlLLloN WUARS
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Licenses
88,675
111,253
141,050
151,768
186,845
242,342
247,798
258,663
279,973
351,875
Other
Licenses
322,203
448,814
908,521
909,20 1
626,749
829,623
1,048,332
537,476
491,267
2,099,942
Int ergov- er nment a1
459,473
547,477
873,544
655,588
1,3 16,172
1,133,947
1,875 ,243
2,551,262
1,777,587
566,129
Charges for
Services
546,670
643,995
859,008
862,138
851,465
1,168,326
1,737,238
1,986,800
1,413,075
2,182,267
Fines and Miscel- Forfeits Interest laneous
84,279
100,859
139,480
125,964
129,504
152,171
230,684
260,498
231,086
256,471
223,751
214,346
294,892
489,638
817,604
1, 143,121
1,472,68 1
1,533,333
1,211,802
1,155,052
41,365
56,765
89,054
183,828
130,620
167, 576
124,791
75,963
179,271
68,002
BUSINESS LICENSE REVENUE UzTmrURs - l!n!um
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YlLLlols WLLARS ¶.-
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r IUU
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CITY OF CARLSBAD
Fiscal Year
1974 - 75
1975 - 76
1976 - 77
1977 - 78
1978 - 79
1979 - 80
1980 - 81
1981 - 82
1982 - 83
1983 - 84
Ratio General Bonded Debt to Assessed Valuation and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Net Assessed Valuation
121,045,109
150,147,591
156,629,855
196,697,879
245,296,620
312,538,738
361,068,983
( Perm nt of
I Out st and ing Total Per Capita
Principal Va 1 ua t ion Debt Population
I
27,946 1
4
1,850,OOO 1.5 92.61 19,977
1,765,000 1.1 84.17 20,970
1,680,000 1.0 69.59 24,143
1,595,000 0.8 57.07
1,510,000 0.6 47.04 32,100
1,425,000 0.4 40.20 35,448
1,245,000 0.3 34.97 35,606
I 1,687,082,037(1) 1,145,000 0.06 31.65 36,172
2,015,289,869(1) 1,030,000 0.05 26 . 39 39,037
2,194,598,447(1) 915,000 0.04 22.60 40,486
(1) In 1981-82, the County of San Diego began providing assessed valuation data based on full market value. The 1981-82 and 1982-83 values may be converted to the basis used between 1973-74 and 1980-81 by multiplying by 25%.
(2) Library and sewer general obligation bonds.
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CITY OF CARLSRAD
Computation of Legal Debt Margin
3une 30, 1984
25% of Assessed Valuation I Debt Limit 15% of Assessed Valuation
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Amount of Debt Applicable to Debt Limit:
(1) Bonded Debt
Capitalized Leases
Total Amount of Debt
Applicable to Debt Limit
LEGAL DEBT MARGIN
Percent of Debt Limit
$ 548,649,611
82,297,442
(1) General Obligation Bonds
(Library and Sewer)
Parking Authority
Building Authority
TOTAL BONDED DEBT
92
$ 3,700,000
473,598
4,173,598
78,123,844
5.1%
$ 915,000
2 545 000 240; 000
$ 3,700,000
CITY OF CARLSBAD
Schedule of Direct and Overlaping Bonded Debt
3une 30, 1984
(1) 1983-84 Assessed Valuation : $2,244,519,647
Percent Debt as of
Direct and Overlapping Bonded Debt: Applicable 6/ 30/ 83
San Diego County Building Authorities 3.800% 3.955 Metropolitan Water District 0.619
Oceanside-Carlsbad Community College District 25.931
Carlsbad Unified School District
Carlsbad Unified School District Authority 92.184
San Marcos Unified School District 20.027
San Dieguito Union High School District 10.219
Encinitas Union School District 25.786
Encinitas Union School District Authority 25 . 786
Other School Districts Various
Tri-City Hospital District 30.254
North San Diego Hospital District & Authority 0.466
San Marcos County Water & I.D.'s fl, 2, 6
Costa Real Municipal Water District
Costa Real (Carlsbad) Municipal Water Dist.
Olivenhain Municipal Water District I.D. #l
San Diego County Water Authority
(various issues) 92 -229-92 0242
Leucadia County Water District 53 . 583
1.776-6.824
Certificates of Participation 96 . 360
I.D.'s fl, 2, 3, 4 92.638-96.350
33.373 City of Carlsbad 100.
City of Carlsbad Building Authorities
Vista Irrigation District 0.111
100.
$ 6,546,830 1,566,773 2,845,2 39
116,689
990,363
2,189,370
893,845
541,607
452,544
442,229
20,784
779,040
86,558
487,605
106,538
12,141,360
1,314,107 644,098 915,000 2,785,000 748
TOTOL DIRECT AND OVERLAPPING BONDED OEBT 35,866,327
Ratios to Assessed Valuation:
Direct Debt ($3,700,000) 0.16%
Total Debt 1.60%
("Cross assessed value provided by County of San Diego,
Auditor and Controller (exclusive of Homeowners exemption).
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Ratio of Annual Debt Service
For General Bonded Debt to Total General
Expenditures - Last Ten Fiscal Years
Debt Total Ratio of Debt
Fiscal Total (1) General (2) Service to General
I I Year Principal Interest Service Expenditures Expenditures %
I 1974-75
I :;;:::;
1977-78
"Q-79
Y-80
1980-81 I 1981-82
$ 85,000
85,000
85,000
85,000
85,000
95,000
95,000
100,000
115,000
15,000' 3,
$68,108
65,140
62,215
59,297
56,038
53,164
49,600
46,160
42,757
3 ,022
$153,103
150,140
147,2 1 5
144,297
141,038
148,164
144,600
146,160
157,797
53,022
$ 4,841,800
5,540,958
6,916,158
8,608,080
9,566,353
10,958,699
13,837,197
14,329,047
14,955,142
16,531,162
("Debt Service Requirement on General Obligation Bonds Comprised of 1962 Sewer Bonds Series A, B, C; and
1966 Library Bonds.
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Excludes Debt Service for Building and I Parking Authorities. I (2)Includes General, Special Revenue, and Debt Service Funds
I (3)In 1983-84, the City began recording principal payments in the year they become payable. The general obligation principal payments are due 3uly 1 each year and have previously been paid
by the City on 3une 30 each year.
3.2%
2.7
2.1
1.7
1.5
1.4
1 .o
1 .o
1.1
0.0
94
CITY OF CARLSBAD
Water Bonds Last Ten Fiscal Years
Net Revenue
Direct Available Fiscal Gross Operating for Debt Debt Service Requirements Year Revenue Expenses Service Principal Interest Total Coverage -
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-8 1
781-82
1982-83
1983-84
$1,112,969
1,257,334
1,271,353
1,388,195
1,525,143
1,806,817
1,997,591
2,084,262
1,934,415
1,672,564
$ 727,981
785,26 1
897,240
1,023,717
1,269,836
1,333,560
1.655,756
1,620,5 19
1,945,681
1,557,173
$384,988 $70,000
472,073 75,000
374,113 60,000
364,478 85,000
255,307 90,000
473,257 95,000
341,835 105,000
463,743 215,000
(11,266) 115,000
115,390 -- -
$105,096 $175,096
100,972 175,972
96,362 176,362
91,245 176,245
85,603 175,603
80,377 175,377
74,985 179,985
69,715 284,715 '
64,492 179,492
56,875 56,875
220%
268
21 2
207
145
270
190
163
(6)
20 3
WATER ENERPRISE GROSS RMNUE AND DIRECT OPERATING EXPENS3 NET REVENUE AVAILABLE FOR DEBT SERVICE USTmYEARs LAsflENyuw la& -7 Da.
95
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Demographic Statistics
city Population Popu 1 at ion
- Year Miles Population Change Population of County Square Percent County ( Percent
1975 28.3
1976 28.6
1977 28.7
1978 28.7
1979 29.1
I 1980 29.4
i 1987 29.7
1982 29.8
I 1983 32.0
1984 32.0
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19,977
20,970
24,143
27,946
32,100
35,448
35,606
36,172
39,037
40,486
I 1990
75,300 I
I
1995
92,100
2000
10.1%
5 .O
15.1
15.8
14.9
10.4
0.4
1.6
7.9
3.7
1,559,505
1,590,700
1,656,800
1,694,800
1,767,450
1,808,200
1,899,900
1,924,700
1,986,035
2,040,888
(2)
1.3%
1.3
1.5
1.6
1.8
2.0
1.9
1.9
2.0
2.8
I I (estimate) 107,300 ( (2)
'l)Source - County Data Base, San Diego County 1 POPULATI ON IASrTLw~ I
("County Future Population Estimate Not Available
(3)Population for City General Plan area
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Schedule of Assessed Valuation
Last Ten Fiscal Years
Less
Secured Unsecured Property Total Fiscal Year Property Property Exempt ions Valuation
1974 - 75 $ 123,890,815
1975 - 76 154,000,994
1976 - 77 158,745,285
1977 - 78 200,426,225
1978 - 79 249,889,799
1979 - 80 318,374,958
1981 - 82(')1,700,974,823
1982 - 83(1)2,027,411,290
1983 - 84(1)2,195,611,840
1980 - 81 366,867,584
$ 5,056,766
5,428,247
7,381,254
9,115,516
10,823,286
12,937,939
8,877,200
43,077,175
50,604,897
57,309,394
$ 1,441,339
1,729,582
1,149,614
2,189,620
2,171,421
2,354,961
2,578,751
8,210,76 1
13,841,078
8,401,587
$ 127,506,242
157,699,699
164,976,925
207,352,121
258,541,664
328,957,936
373,166,033
1,735,841,237
2,064,175,069
2,244,5 19,647
(1) In 1981-82 the County of San Diego began providing assessed valuation data based on full market value.
to the basis used between 1972-73 and 1980-81 by multiplying by 25%.
The 1981-82 values and 1982-83 may be converted
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Business Inventory
Exempt ions
$ 1,368,033
1,913,518
2,304,270
3,170,192
4,160,094
5,207,298 --- --- --- - --
Homeowner's
Exemptions
$ 5,093,100
5,638,550
6,042,800
7,484,050
9,084,950
11,211,900
12,097,050
48,759,200
48,885,200
49,921,200
Net
Taxable
Value
$ 121,045,109
1 50,147,59 1
156,629,855
196,697,879
245,296,620
312,538,739
361,068,983
1,687,082,037
2,015,289,869
2,194,498,447
Fiscal Year
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
30-81
1981 -82
1982-83
1983-84
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CITY OF CARLSBAD 1-
Construction and Business Activity
Last Ten Years
Building
Permit Revenue
110,952
190,492
613,427
520,603
119,224
181,839
328,453
271,542
490,100
Percent
Change
(52.3) %
71.7
222.0
(15.1)
(77.1)
52 .5
80.6
(17.3)
80.5
1,068,876 118.1
Business
Estimated (I) Licenses Percent Valuation
$ 23,700,000
41,900,000
85,900,000
52,700,263
79,400,000
198,520,304
( "Information for fiscal year 1972-73 through 1977-78
Issued Change
$ 88,675
11 1,253
141,050
151,768
186,845
242,342
247,798
258,663
279,973
351,875
12.9%
25 .5
26.8
7.6
23.1
29.7
2.3
4.4
8.2
25.7
is not available.
BUILDING VALUATION
1978-79 TO 1983-84 - &'MI%
MILLION DOLLARS
FISCAL YEAR
VAUUTla PRIM TU 1-7S NQT mY AVAIIAIILE
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riate of Incorporation
Type of City Form of Government
Area Population
Number of Street Lights
CITY OF CARLSBAD
Miscellaneous Statistical Information
Miles of Streets
Fire Protection:
Number of Stations
Number of Firefighters & Officers
Pol ice Protect ion:
Number of Stations
Number of Sworn Police Officers
Recreation and Culture:
Number of Parks Number of Libraries Number of Volumes
Total Number of City Employees
kly 16, 1952 General Law
Counci 11Manager
32.0 sq. miles
40,486
2,454
138
3
49
1
54
22 2 148,365
31 5
100
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CITY OF CARLSBAD
Schedule of Principal Employers
1983-84
Firm
Manufacturing:
Hughes Aircraft Company,
Burroughs Corporation
Sargent Industries
Magnedyne Inc.
Eaton-Leonard Corporation
Dyna Med Inc. Beckman Instruments Anthony Industries (Pool Division)
Industrial Products Division
Non-manufacturing:
Plaza Camino Real La Costa Hotel & Spa Tri-City Hospital Mira Costa college Car Country Auto Dealers
Frazee Flowers
San Diego Gas & Electric, Encina Army & Navy Academy
Carlsbad Unified School District Lopez Farms Sanchez Farms
Number of Product/Service Employees
Electronic components
Computer components
Industrial seals Electronic motors Vending machines
Emergency medical products
Microbics operation Swimming pools & related
equipment
Source: City of Carlsbad Chamber of Commerce
101
Shopping center Hotel & health spa Di s tr ic t ho s pi tal Community college Car dealers All major agencies Flower growing and processing Power gene r at io n Private junior/senior high school Education Tomato /vegetable growers
Tomato /vegetab le growers
1,100
37 5
28 0
220
180
160
150
75
1,500
1,100
1,200
520
460
450
150
100
350
300
300
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