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HomeMy WebLinkAbout1990-02-13; City Council; 10493; 1988-89 FINANCIAL STATEMENTS FOR PARKING AUTHORITY, BUILDING AUTHORITY, PUBLIC IMPROVEMENT CORPORATION AND WATER UTILITY FUNDf- i II) d e, a U cd U m 4 cd .rl V r: cd r: .rl w e, s u a e, U a e, L) c) a d -d u 0 U u E $ 0 a \ m d 1 e4 .. z 0 F 0 4 =! 0 z s 0 GI I r GARLSBAD - AGENLJ "/ AB#+L TITLE. ,DEPT. I MTG, 2/13/90 1988-89 FINANCIAL STATEMENTS FOR PARKING CITY A' DEPT'FTN RECOMMENDED ACTION: AUTHORITY, BUILDING AUTHORITY 3 PUBLIC IMPROVEMENT CITY M CORPQRATION AND WATER UTILITY FUND Accept the 1988-89 Financial statements for Building Authority, Parkin Authority, Publ ic Improvement Corporation, and Water Uti1 ity Fund. ITEM EXPLANATION : The Finance Department prepares individual annual financial statements fo each of the following component units: Buildinq Authority Remaining bonds outstanding for construction of the civic center tota $120,000. Since funds held by the Trustee total over $130,000, the Financr Department will investigate calling or defeasing the bonds. Parkins Authority Because of excess funds held by the trustee, no lease payments were require1 from the City under the parking facility lease. The Finance Department wil also investigate calling or defeasing the Series 1969 bonds which hav outstanding bonds of $725,000. Publ i c Imwovement Corporation Revenues consist of the City's lease payments for Hosp Grove and interesi on reserve and construction funds. The corporation had an offsettin! expenditure for debt service on the certificates of participation. Tht trustee still holds the majority of funds for capital improvements at Monrot and Marron roads. Water Utility Fund Operating revenues increased $165,000 over 1987-88 while operating expenses declined $1.1 million, reversing last year's operating loss. The Water Utility Fund increased its retained earnings by about $500,000. FISCAL IMPACT: These reports present the financial condition of the component units. . b I) *i r Page Two of Agenda Bill No. 4 #93 EXHIBITS : 1. Parking Authority of the City of Carlsbad, Combined Financia 2. Building Authority of the City of Carlsbad, Combined Financia Statements for June 30, 1989. Statements for June 30, 1989. Statements for June 30, 1989. 30, 1989 and 1988. 3. City of Carlsbad Public Improvement Corporation, Combined Financia 4. City of Carlsbad Water Utility Fund Financial Statements for Jun All are on file in the City Clerk's office. 0 w 5 b CITY OF CARLSBAD Schedule of Federal Financial Assistance and Auditors' Reports Required Under the Single Audit Act of 1984 June 30, 1989 e I b CITY OF CARLSBAD, CALIFORNIA Schedule of Federal Financial Assistance and Auditors' Reports Required Under the Single Audit Act of 1984 Year ended June 30, 1989 Table of Contents Independent Auditors' Report on Supplementary Schedule of Federal Financial Assistance Schedule of Federal Financial Assistance Notes to Schedule of Federal Financial Assistance Independent Auditors' Report on Compliance at the General Purpose Financial Statements Level Independent Auditors ' Report on General Compliance Requirements Independent Auditors' Report on Compliance with Specific Requirements Applicable to Major and Nonmajor Federal Financial Assistance Programs Schedule of Findings and Questioned Costs Independent Auditors' Report on the Internal Control Structure in Accordance with Government Auditing Standards Auditom I Report on Internal Controls (Accounting and Administrative) - Based on a Study and Evaluation Made as Part of an Audit of the General Purpose Financial Statements and the Additional Tests Required by the Single Audit Act 0 - b KPMG Peat Marwick Certified Public Accountants 750 B Street San Diego, CA 921 01 Independent Auditors' Report on Supplementary Schedule of Federal Financial Assistance The Honorable Members of City Council City of Carlsbad, California: We have audited the general purpose financial statements of the C: Carlsbad, California for the year ended June 30, 1989, and have issu report thereon dated October 20, 1989. These general purpose fir statements are the responsibility of the City of Carlsbad's management responsibility is to express an opinion on these general purpose fir statements based on our audit. We conducted our audit in accordance with generally accepted at standards and Government Auditing Standards, issued by the Comptroller ( of the United States. Those standards require that we plan and perfo audit to obtain reasonable assurance about whether the general E financial statements are free of material misstatement. An audit ii examining, on a test basis, evidence supporting the amounts and disclos the general purpose financial statements. An audit also includes as the accounting principles used and significant estimates made by mana as well as evaluating the overall financial statement presentatio believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the purpose financial statements of the City of Carlsbad, California take whole. The supplementary information included in the accompanying sche federal financial assistance is presented for purposes of additional a and is not a required part of the general purpose financial statements supplementary information has been subjected to the auditing pro applied in the audit of the general purpose financial statements and, opinion, is fairly presented in all material respects in relation general purpose financial statements taken as a whole. kpflGht dd October 20, 1989, except as to Note 4, which is as of April 5, 1990. 1 New3er hri 0' Kivnvptd Pear Lo, b\ L< CGE 6s e t Schec e - CITY OF CARLSBAD Schedule of Federal Financial Assistance For the year ended June 30, 1989 Pass- Federal/Pass-Through Grantor/ Through Federal Pass-Through Tot Proaram Title Agencv CFDA # Grantor's # Expend Major Programs: Highway Research, Planning and Construction A 20.205 M-S10 1 ( 10 ) $ 81 Lower Income Housing Assistance Program (See. 8-Existing Housing - 14.156 SF-535-CA16- 1,4t and State Agency Program) E077-001/009 Nonmajor Programs: Community Development Block Grant/Small Cities Program B 14.219 Subvention 2L State and Local Government Fiscal Assistance General Revenue Sharing - 21 e 300 Subvention 2: Special Programs for the Aging, Title 111, Parts A&B C 13.633 25081-E Special Programs for the Aging, Title 111, Part C, Nutrition Services C 13.635 25082-E 1. $u Notes: A. B. Passed through the County of San Diego, California C. Passed through the California Department of Transportation Passed through the San Diego County Department of the Area Agency or See accompanying notes to schedule of federal financial assistance. 2 e - I CITY OF CARLSBAD Notes fro Schedule of Federal Financial Assistance For the year ended June 30, 1989 (1) General The accompanying schedule of federal financial assistance presen expenditures of all federal financial assistance programs of th of Carlsbad (the City). The City's reporting entity is defi Note 1 to the City's general purpose financial statements. expenditures of federal financial assistance received direct1 federal agencies as well as expenditures of federal fir assistance passed through other government agencies are included schedule. (2) Basis of Accoun tin g The accompanying schedule of federal financial assistance is prc using the modified accrual basis of accounting, which is descrj Note 1 to the City's general purpose financial statements. (3) RelationshiD to General Purpose Financial S ta temen t s Federal financial assistance programs revenues and expenditur reported in the City's general purpose financial statements as fo Beginning Fund Bal ante (Def icitl Revenues Exvnd' 1 tures Special Revenue Funds: Community Development Block Grant $ 415,637 83,379 - Section 8 Housing Authority 128,099 1,473,888 1,469,477 Senior Nutrition 9,092 145,000 1 44,538 Capital Projects Funds: Community Development Block Grant - 245,313 240,300 Revenue Sharing 547,496 29,693 224.797 Federal Grants (58.897) 4.797 819.805 Total $ 1.041.477 J.987 07P 2.898.917 No revenue relating to the Highway Research, Planning and Const program, included in the Federal Grants fund above, has been rec in the general purpose financial statements as the ultimate am be received could not be determined at the time of issuance general purpose financial statements. 3 0 - CITY OF CARLSBAD Notes to Schedule of Federal Financial Assistance, Continued (4) Subseauent Event In February 1990, the City was notified that they were not in corn! with the contract requirements under the Highway Research, Plannj Construction program. Therefore, no federal reimbursement w: obtained for the expenditures made under this program during th ended June 30, 1989. 4 0 w KPMG Peat Marwick Certified Public Accountants 750 B Street San Diego, CA 921 01 Independent Auditors' Report on Compliance at the General PurDose Financial Statements Level The Honorable Members of City Council City of Carlsbad, California: We have audited the general purpose financial statements of the C Carlsbad, California (the City) as of and for the year ended June 30 and have issued our report thereon dated October 20, 1989. We conducted our audit in accordance with generally accepted a of the United States. Those standards require that we plan and perfc audit to obtain reasonable assurance about whether the general financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable City is the responsibility of the City's management. As part of ob reasonable assurance about whether the general purpose financial sta are free of material misstatement, we performed tests of the City's corn with certain provisions of laws, regulations, contracts, and grants. H our objective was not to provide an opinion on overall compliance wi provisions. Material instances of noncompliance are failures to follow requiremc violations of prohibitions contained in laws, regulations, contracts or that cause us to conclude that the aggregation of the misstatements re from those failures or violations is material to the general purpose fi statements. The results of our tests of compliance disclosed the fc in the 1989 general purpose financial statements of the City: standards and Government Auditing Standards, issued by the Comptroller material instance of noncompliance, the effects of which have been cc The prime contractor has not fulfilled his obligation to perform t minimum 50% of the contract work with his own organization required by Section 5-1.15 of the Project Special Provisions i Section 8-1.01 of the Standard Specifications. 5 Meriiner F rr" 01 Klvrivr Q Peal iJaw LK Cceroe e 0 v We considered this instance of noncompliance in forming our opinion on b the 1989 general purpose financial statements are presented fairly, material respects, in conformity with generally accepted accc principles, and this report does not affect our report dated October 2C on those general purpose financial statements. Except as described above, the results of our tests of compliance ir that, with respect to the items tested, the City complied, in all m; respects, with the provisions referred to in the fourth paragraph o report and with respect to items not tested, nothing came to our at that caused us to believe that the City had not complied, in all mi respects, with those provisions. This report is intended for the information of the members of City C1 management, and federal regulatory agencies. This restriction is not i to limit the distribution of this report, which is a matter of public re KQaG &kfl& October 20, 1989 6 0 - KPMG Peat Marwick Certified Public Accountants 750 6 Street San Diego. CA 92101 Independent Auditors' Report on General Comuliance Requirements The Honorable Members of City Council City of Carlsbad, California: We have applied procedures to test the City of Carlsbad's compliance w following requirements applicable to each of its major federal f: assistance programs, which are identified in the accompanying sche federal financial assistance, for the year ended June 30, 1989. The requirements applicable to the City's major federal financial as1 programs include the following: Political activity Davis-Bacon Act Civil rights Cash management 0 Federal f inaiicial reports Our procedures were limited to the applicable procedures described Office of Management and Budget's Comoliance SUPU lement for Single A State and Local Governments. Our procedures were substantially less : than an audit, the objective of which is the expression of an opinior City of Carlsbad's compliance with the requirements listed in the p paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disc material instances of noncompliance with the requirements listed in tl paragraph of this report. With respect to items not tested, nothing our attention that caused us to believe that the City of Carlsbad, Ca had not complied, in all material respects, with those requirements. the results of our procedures disclosed immaterial instances of noncc with those requirements, which are described in the accompanying sch findings and questioned costs. This report is intended for the information of the members of City management and federal regulatory agencies. This restriction is not to limit the distribution of this report, which is a matter of public I KPflG ppd;t qd October 20, 1989 7 Mryiiier F rn c Klynv~d Pear h'aru, CT Goerk E 0 w KPMG Peat Marwick Certified Public Accountants 750 B Street San Dtego, CA 921 01 Independent Auditors' Report on Compliance with Specific Requirements Applicable to Major and Nonmaior Federal Financial Assistance Proarams The Honorable Members of City Council City of Carlsbad, California: We have audited the City of Carlsbad's compliance with the requi: governing types of services allowed or unallowed; eligibility; ma reporting; special tests and provisions as identified in the atta claims for advances and reimbursements; and amounts claimed or us matching that are applicable to each of its major federal financial ass programs, which are identified in the accompanying schedule of financial assistance, for the year ended June 30, 1989. The management City of Carlsbad, California is responsible for the City's compliant those requirements. Our responsibility is to express an opinion on corn with those requirements based on our audit. We conducted our audit in accordance with generally accepted a standards, Government Auditing Standards issued by the Comptroller Gen the United States, and Office of Management and Budget (OMB) Circula Audits of State and Local Governments. Those standards and OMB Circula require that we plan and perform the audit to obtain reasonable as about whether material noncompliance with the requirements referred t occurred. An audit includes examining, on a test basis, evidence ab City's compliance with those requirements. We believe that our audit E a reasonable basis for our opinion. The results of our audit procedures for the Highway Research, Plann Construction program disclosed that the City did not comply wi requirement that the prime contractor perform a minimum of 50% of the ( requirement is necessary for the City to comply with the requ applicable to the Highway Research, Planning and Construction program. The results of our audit procedures also disclosed immaterial inst.? noncompliance with the requirements referred to above, which are desci the accompanying schedule of findings and questioned costs. We co these instances of noncompliance in forming our opinion on compliancc is expressed in the following paragraph. In our opinion, except for those instances of noncompliance w requirements applicable to the Highway Research, Planning and Cons program referred to in the third paragraph of this report and ident: work with his own organization, In our opinion, the performance 8 PJm ver F ri'> 01 Klyr upid Pea' L*d M LL- Goe crs e 0 - the accompanying schedule of findings and questioned costs, the C: Carlsbad, California complied, in all material respects, with the requir governing types of services allowed or unallowed; eligibility; mat reporting; special tests and provisions as identified in the attac claims for advances and reimbursements; and amounts claimed or us( matching that are applicable to each of its major federal financial ass! programs for the year ended June 30, 1989. We considered these instances of noncompliance in forming our opin whether the City of Carlsbad, California's 1989 general purpose fi statements are presented fairly, in all material respects, in conformi generally accepted accounting principles, and this report does not aff' report dated October 20, 1989 on those general purpose financial stateme In connection with our audit of the 1989 general purpose financial sta City's internal control systems used to administer federal fi assistance programs, as required by Office of Management and Budget C A-128 Audits of State and Local Governments, we selected certain trans applicable to certain nonmajor federal financial assistance programs year ended June 30, 1989. As required by Circular A-128, we have pe auditing procedures to test compliance with the requirements governin of services allowed or unallowed; and eligibility that are applicable t transactions. Our procedures were substantially less in scope than an the objective of which is the expression of an opinion on the compliance with these requirements. Accordingly, we do not express opinion. With respect to the items tested, the results of those procedures disc. material instances of noncompliance with the requirements listed preceding paragraph. With respect to items not tested, nothing came attention that caused us to believe that the City of Carlsbad, Califoi not complied, in all material respects, with those requirements. Howey results of our procedures disclosed immaterial instances of noncompliai those requirements, which are described in the accompanying schel findings and questioned costs. This report is intended for the information of the members of City ' management, and federal regulatory agencies. This restriction is not to limit the distribution of this report, which is a matter of public r of the City of Carlsbad, California and with our study and evaluation KPdG Pd dd October 20, 1989 9 At tac e - CITY OF CARLSBAD Special Tests and Provisions Year ended June 30, 1989 Pronram Compliance Requirement Highway Payment vouchers must be certified and accompanic Research, supporting data. The supporting data may be gen Planning and through an automated billing system. The final vouche: Construction be submitted promptly following project completion. Any time extensions granted by a State Highway Agency affecting project costs or the amount of liquidated c must be approved by the Federal Highway Administration ( Policies and procedures for the management of real pi acquired for right-of-way purposes are to be establ including records of acquired parcels and improve property management expenses, rent receipts and disposal Right-of-way property may not be transferred to i governmental agency for public use without a crec federal funds. If there is a payment to the SHA f transfer, a credit shall be made to federal funds in tl ratio as federal funds were used for acquirin right-of-way. The Contractor shall perform, with his own organ contract, work amounting to not less than 50 percent original contract price. A local public agency must have a sampling and testing to assure that materials and workmanship generally con approved plans and specifications. Lower Income The Public Housing Agency (PHA) is required to rev: Housing contract rent and utility allowances for each unit to Assistance that they do not exceed certain rent limitations. Program The PHA is required to annually adjust contract rei tenant utility allowances, upon request from the Special adjustments may also be granted to the determined necessary by the PHA and HUD. The PHA is required to conduct an initial (i thereafter) inspection of units prior to execut: housing assistance payment contract to insure that t meets Housing Quality Standards (applies to existing and moderate rehabilitation programs only). 10 0 w CITY OF CARLSBAD Schedule of Findings and Questioned Costs Year ended June 30, 1989 PROGRAM: Hiahway Research. Planning and Construction Finding/Ques tioned Co st #l It is questionable as to whether the prime contractor will be a' fulfill his obligation to perform the minimum 50% of the contract WOL his own organization as required by Section 5-1.15 of the Project I Provisions and Section 8-1.01 of the Standard Specification. Recommendat ion The City, in conjunction with CalTrans, should monitor the I contractor's work schedules closely to insure adherence to the c( work specifications. Citv's Response The City is now monitoring the prime contractor regarding his oblil to assure compliance. Finding/ Oues tioned Cos t #2 There were instances noted where the contractor and subcontractor paid the prevailing wage rates to their employees as required by th agreement. Recommendation The City has been relying on CalTrans to monitor compliance wj Davis-Bacon Act as required by the grant agreement. We suggest t City implement its own monitoring system to insure compliance situations can be corrected in a more timely manner. Ci tv ' s Respou The contractor is required to submit certified payrolls to the Cit certified payrolls are reviewed by both the City and CalTri compliance. The City will review the certified payrolls more clc the future to assure compliance. 11 - However, for the current year's grant, the contractor's books hav thoroughly examined to determine compliance with all federal Supplemental payrolls were provided by the contractor and both the Ci CalTrans are satisfied that prevailing wage rates have been paid. Finding/Ouestioned Cos t 113 We question the allowability of $106,607 of construction engineering claimed by the City in billings Nos. 1 to 3 for reimbursement und grant agreement. The City was not able to provide supporting documer for these amounts. In addition, we noted that the City's clai prepared by an individual who is not familiar with the requirements program and the claims are not reviewed for accuracy, completer compliance with the grant agreement by an individual other th preparer. Recommenda t ion In order to insure proper reporting on the claims submitted to CalTr individual other than the preparer should review the claim. As 1 this review process, all amounts claimed should be agreed to sup documentation. City's Resvonse The City will continue to use existing procedures for col construction engineering costs. However, no engineering costs P claimed for work prior to start of actual construction. The finance department will supply the Project Engineer with costs a on the City's financial records and future claims will agree tc records. The Project Engineer's supervisor will review clai accuracy, completeness and compliance with the grant agreement. 12 0 w CITY OF CARLSBAD Schedule of Findings and Questioned Costs Year ended June 30, 1989 PROGRAM: Lower Income Housing Assistance Program Findina/Ouestioned Cost #l The second quarter requisition for payment was not submitted by August Recommendation Quarterly requisitions for payments should be prepared earlier in the in order to be received by HUD on the fifteenth of the month. City's Response The City misinterpreted the requirement believing that the requ needed to be postmarked by the fifteenth of the month. To insure tt requisitions on the tenth of the month. requisition is submitted in a timely matter, the City will mail the I FindingjOuestioned Cost #2 On two of the 50 applicant files reviewed, the monthly contract r increased by more than the allowable percentage. The percentage i used was from the Federal Register effective as of November 8, 1987 than the revised rates effective December 9, 1988. Recommendation The City should arrange to receive the relevant revisions and upd the Federal Register as they are published and distribute these appropriate personnel. City's Resuonse In May 1989, the City began subscribing to Nan McKay and As5 publication which provides regulation updates and interpretations Section 8 program recipients. 13 0 w Findiniz/Ouestioned Cos t 113 The number reported on Line 12 of the quarterly "Housing and Devel Requisition for Partial Payment of Annual Contributions" form fc quarters ended September 30, 1988 and December 31, 1988 was based o occupancy of the units available rather than actual units under lease the date of the requisition. This resulted in overpayments of ad during these quarters. Recommendation Quarterly requisitions should be reviewed thoroughly and performed person knowledgeable with the requirements of the form. City's Response The Housing and Redevelopment Agency now provides the City with fir Unit Month (PUM) reports. The final PUM report shows actual units lei 3 The conditions disclosed in the Single Audit for the ended June 30, 191 been satisfactorily resolved. 14 0 - KPMG Peat Marwick Certified Public Accountants 750 6 Street San Diego, CA 92101 Independent Auditors' Report on the Internal Control Structure 1 The Honorable Members of City Council City of Carlsbad, California: We have audited the general purpose financial statements of City of Ca California, as of and for the year ended June 30, 1989, and have issi report thereon dated October 20, 1989. We conducted our audit in accordance with generally accepted a standards and Government Auditinn Standard-s, issued by the Comptroller of the United States. Those standards require that we plan and perf audit to obtain reasonable assurance about whether the general financial statements are free of material misstatement. In planning and performing our audit of the general purpose fi statements of City of Carlsbad, California, for the year ended June 30 we considered its internal control structure in order to determi auditing procedures for the purpose of expressing our opinion on the purpose financial statements and not to provide assurance on the i control structure. The management of City of Carlsbad, California is responsible for estab and maintaining an internal control structure. In fulfillinj responsibility, estimates and judgments by management are required to the expected benefits and related costs of internal control structure r and procedures. The objectives of an internal control structure provide management with reasonable, but not absolute, assurance that are safeguarded against loss from unauthorized use or disposition, 2 transactions are executed in accordance with management's authorizat recorded properly to permit the preparation of general purpose f statements in accordance with generally accepted accounting prii Because of inherent limitations in any internal control structure, ei irregularities may nevertheless occur and not be detected. Also, pr of any evaluation of the structure to future periods is subject to 1 that procedures may become inadequate because of changes in conditions the effectiveness of the design and operation of policies and procedi deteriorate. 15 blr 1 ,e, F 111 0 K V~YF n f'paf h (9 % L' CL~ c ? c - For the purpose of this report, we have classified the significant ir control structure policies and procedures in the following categories: Investments Revenues/receipts Purchases/disbursements Payroll External financial reporting Our consideration of the internal control structure included all 1 control categories listed above except that we did not evaluate the ii control structure over investments, revenues/receipts and payroll beca believed the audit could be performed more efficiently by ex] substantive testing rather than placing reliance on the internal I systems and because these categories are not significant to the major * financial assistance programs. The purpose of our consideration 1 internal control structure was to determine the nature, timing, and exi the auditing procedures necessary for expressing an opinion on the 1 purpose financial statements. Our consideration of the internal control structure would not nece< disclose all matters in the internal control structure that might be ma weaknesses under standards established by the American Institute of Ce . Public Accountants. A material weakness is a reportable condition ir the design or operation of one or more of the specific internal structure elements does not reduce to a relatively low level the ri errors or irregularities in amounts that would be material in relation general purpose financial statements being audited may occur and detected within a timely period by employees in the normal cot performing their assigned functions. We noted no matters involvj internal control structure and its operation that we consider to be IT weaknesses as defined above. However, we noted certain matters involving the internal control struct its operation that we have reported to the management of City of Ca California, in a separate communication dated October 20, 1989. This report is intended for the information of members of City C management, and the federal regulatory agencies. This restriction intended to limit the distribution of this report, which is a matter of record. KPfl& Pad d& October 20, 1989 16 0 - KPMG Peat Marwick Certified Public Accountants 750 B Street San Diego, CA 921 01 Independent Auditors ' Report on Internal Controls (Accounting and Administrative) - Based on a Study and Evaluation Made as Part of an Audit of the General Purpose Financial Statements and the Additional Tests Required bv the Single Audit Act The Honorable Members of City Council City of Carlsbad, California: We have audited the general purpose financial statements of the C Carlsbad, California for the year ended June 30, 1989, and have isst report thereon dated October 20, 1989. As part of our audit, we made i and evaluation of the internal control systems, including applicable ii administrative controls, used in administering federal financial ass programs to the extent we considered necessary to evaluate the syst Standards, issued by -the Comptroller General of the United States, the Audit Act of 1984, and the provisions of Office of Management and Circular A-128, A:. For the purp this report, we have classified the significant internal accounti administrative controls used in administering federal financial ass programs in the following categories: required by generally accepted auditing standards 9 Government A Accoun tinn Controls Purchases/disbursements External financial reporting Controls Used in Administering Federal Proarams General reauire ments: Political activity Civil rights Cash management Federal financial reports Davis-Bacon Act 17 Nierntie f 111 i Klynvc 0 Pear iL"a VI CI ( ~e cz t 0 - Specific rewirements: Types of services Eligibility Matching, level of effort Reporting Special requirements, if any The management of the City of Carlsbad, California is responsib establishing and maintaining internal control systems used in admini federal financial assistance programs. In fulfilling that responsi’ estimates and judgments by management are required to assess the e. benefits and related costs of control procedures. The objectives of i control systems used in administering federal financial assistance PI are to provide management with reasonable , but not absolute, assurance with respect to federal financial assistance programs, resource I consistent with laws, regulations, and policies; resources are safe! against waste, loss, and misuse; and reliable data are obtained, main1 and fairly disclosed in reports. Because of inherent limitations in any system of internal accounti administrative controls used in administering federal financial ass programs, errors or irregularities may nevertheless occur and r detected. Also, projection of any eva1uation.of the systems to future 1 is subject to the risk that procedures may become inadequate beca changes in conditions or that the degree of compliance with the procedui deteriorate. Our study included all of the applicable control categories listed During the year ended June 30, 1989, the City of Carlsbad, California e: 79% of its total federal financial assistance under major federal fi: assistance programs. With respect to internal control systems u administering major federal financial assistance programs, our stu evaluation included considering the types of errors and irregularitie could occur, determining the internal control procedure that should pre’ detect such errors and irregularities, determining whether the ne( procedures are prescribed and are being followed satisfactorily and eva: any weaknesses. With respect to the internal control systems used solely in administer; nonmajor federal financial assistance programs of the City of Cai California, our study and evaluation was limited to a preliminary rev the systems to obtain an understanding of the control environment and tl of transactions through the accounting system. Our study and evaluat the internal control systems used solely in administering the nonmajor financial assistance programs of the City of Carlsbad, California d extend beyond this preliminary review phase. 18 0 - 1 Our study and evaluation was more limited than would be necessary to e an opinion on the internal control systems used in administering the f fin2flCid assistance programs of the City of Carlsbad, Calif Accordingly, we do not express an opinion on the internal control systen in administering the federal financial assistance programs of the CA Carlsbad, California. Further, we do not express an opinion on the in systems used in administering the major federal financial assistance pr of the City of Carlsbad, California. Also, our audit, made in accordance with the standards mentioned above, not necessarily disclose material weaknesses in the internal control s used solely in administering nonmajor federal financial assistance progra However, our study and evaluation and our audit disclosed the fol conditions that we believe result in more than a relatively low risi errors or irregularities in amounts that would be material to a f period: financial assistance program may occur and not be detected within a The City's claims for reimbursement under the Highway Research Planning and Construction program are prepared by an individual wh is not familiar with the requirements of the program. In addition supporting documentation is not required to be attached to th claims and the claims are not reviewed for accuracy, completeness o compliance with the grant agreement by an individual other than th preparer. These conditions were considered in determining the nature, timing and of the audit tests to be applied in (1) our audit of the 1989 general p financial statements and (2) our audit and review of the City of Carl compliance with laws and regulations, noncompliance with which we b could have a material effect on the allowability of program expenditure each major federal financial assistance program and nomajor federal fin: assistance programs. This report does not affect our reports on the gi purpose financial statements and on the City of Carlsbad's compliance laws and regulations dated October 20, 1989. This report is intended solely for the use of members of City Co management, and the federal regulatory agencies. This restriction i intended to limit the distribution of this report, which is a matter of record. KfmG t?af dd October 20, 1989 19 I I C'OMPREHENSI I/€ ANNUAL FINA NCIAb REP0 RT for the fiscal year ending JUNE 30, 1989 I I I CITY OF CARLSBAD - CALIFORNIA I I I I 1 1 I I I I I 1 I Claude "Bud" Lewis MAYOR PRO TEM Ann Kulchin CITY COU N C I L Eric Larson John J. Mamaux Mark V. Pettine CITY MANAGER Raymond R. Patchett FINANCE DIRECTOR James F. Elliott I Prepared by the Finance Department CITY OF CARLSBAD Comprehensive Annual Financial Report Year ended June 30, 1989 8 i 1 1 r I I 1 1 I 1 t t I I Fund Types 38 I 11 1 TABLE OF CONTENTS PAGE Introductorv Sec tion I Table of Contents i Letter of Transmittal 1 Location Map 21 Certificate of Achievement for Excellence in Financial Reporting Government Finance Officers Association 22 Certificate of Award for Outstanding Financial Reporting California Society of Municipal Finance Officers 23 List of City Officials 24 Organization Chart 25 Financial Section Independent Auditors' Report 27 General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups 28 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - All Governmental Fund Types 32 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) All Governmental Fund Types 34 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary i CITY OF CARLSBAD Comprehensive Annual Financial Report Year ended June 30, 1989 TABLE OF CONTENTS. CONTINUED PAGE Combined Statement of Changes in Financial Position - All Proprietary Fund Types 40 Notes to Combined Financial Statements 41 Supplement Section : Governmen tal Funds : General Fund: Schedule of Revenues - Budget and Actual (Budgetary Basis) 78 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 80 84 Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 88 Combining Schedule of Revenue and Expenditures - Budget and Actual (Budgetary Basis) 92 Debt Service Funds : Combining Balance Sheet 102 Combining Statement of Revenue, Expenditures and Changes ir, Fund Balance 104 Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis) 106 ii CITY OF CARLSBAD t 8 I I I I Combining Balance Sheet 120 1 I a 8 1 1 I 1 1. I 1 1 I Comprehensive Annual Financial Report Year ended June 30, 1989 TABLE OF CONTENTS. CONTINUED PAGE Capital Project Funds: Combining Balance Sheet 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 114 Proprietary Funds: Enterprise Funds: Combining Statement of Revenues, Expenses and Changes in Retained Earnings 122 Combining Statement of Changes in Financial Position 123 Internal Service Funds: Combining Balance Sheet 126 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 128 Combining Statement of Changes in Financial Position 130 Agency Funds: Combining Statement of Changes in Assets and Liabilities 134 General Fixed Asset Account Group: Schedule of General Fixed Assets by Function 137 Schedule of General Fixed Assets by Source 138 iii . CITY OF CARLSBAD Comprehensive Annual Financial Report Year ended June 30, 1989 TABLE OF CONTENTS. CONTINUED PAGE STATISTICAL INFORMATION (Not Covered by Independent Auditors' Report) General Expenditures by Function, Last Ten Fiscal Years 140 General Revenues by Source, Last Ten Fiscal Years 142 Ratio of General Bonded Debt to Assessed Valuation and Net Bonded Debt Per Capita, Last Ten Fiscal Years 144 145 146 Computation of Legal Debt Margin Schedule of Direct and Overlapping Bonded Debt Ratio of Annual Debt Service for General Bonded Debt to Total Governmental Expenditures, Last Ten Fiscal Years 147 Revenue Bond Coverage - Water Bonds, Last Ten Fiscal Years 148 Demographic Statistics, Last Ten Fiscal Years 150 Schedule of Assessed Valuation, Last Ten Fiscal Years 152 Construction and Business Activity, Last Ten Fiscal Years 154 Property Tax Levies and Collections, Last Ten Fiscal Years 155 Special Assessment Billings and Collections, College Boulevard Assessment District, Last Three Fiscal Years 156 PERS Historical Trend Information, Last Two Fiscal Years 15 7 Principal Employers, 1988-89 158 Principal Taxpayers 9 1988-89 159 Miscellaneous Statistical Information 160 Annual Debt Service Requirements 161 iv I I I 1E 1 1 I 1 R I 1 1 1 1 E 1 # 1200 ELM AVENUE TEL CARLSBAD, CA 92008-1989 (619) Miti of QrlsbaP FINANCE DEPARTMENT November 19, 1989 Honorable Mayor, City Council, CITY OF CARLSBAD and City Manager 1 Carlsbad, California We are pleased to present the 1988-89 Annual Financial Report of the City ( Carlsbad to the City Council and the City Manager. This report includt the Parking and Building Authorities of the City of Carlsbad, the Carlsbad Publ. Improvement Corporation and the Carlsbad Redevelopment Agency, as we1 1 as tt opinion of our independent certified public accountants, KPMG Peat Marwick. financial statements of the City, the Housing Authority of the City of Carlsbac Backqround Carlsbad is located about 35 miles north of the City of San Diego on the Southei California coast. The City is governed by a five member City Council under tl Counci l/Manager form of government. Carl sbad i s a general 1 aw city i ncorporatc in 1952. The City covers about 40 square miles and has a population of aboi 62,030. Industries in the area include a major regional shopping center, 15 au' dealers, 23 hotels offering 1,870 rooms for tourist lodging, aerospac manufacturing, electronics, several business and light industry parks, ai numerous land developers building single and multi-family housing in a varie. I of community settings. Services Provided by the City The City provides the full range of services normally associated with municipality including police, fire, parks and recreation, library, plannii and zoning, building and engineering, various maintenance services ai administration. The City also operates two Enterprise funds, one providing wat service to the residents of Carlsbad and the other providing sewer service all but a very small portion of the City. Solid waste collection is provid through a franchise arrangement with a local refuse collection service. 1 In addition to the usual city services, Carlsbad offers a variety of program to help local residents and businesses. The City operates a redevelopment agenc that encompasses 0.4 square miles of the downtown area, as well as a housing authority that provides 330 low and moderate income families with housin assistance. The City’s 1 i teracy program, funded through a state grant, provide adult education to local area residents. Carlsbad’s older residents receiv assistance through the City’s senior citizen programs. Also, the City provide major support for the Convention and Visitors Bureau operated in cooperation wit the Carlsbad Chamber of Commerce. Finally, the City has reserved over $100,001 for support of the arts, art programs, and the purchase of works of art. Siqnificant Events and Accomplishments During 1988-89 the City experienced many significant events or accompl ishment. that may not be evident from a review of the financial statements. Some of thi more important events are summarized below. Growth Control - 1988-89 was the second full year of operation under the City‘ Growth Management Program. Under this program developers are allowed to builc only if infrastructure improvements required to serve the development art financed and constructed as a part of the development. Standards have beer established in eleven areas such as circulation, libraries, fire protection, parks, drainage, water, sewers, and open space An outgrowth of this progran is a long range capital improvement program which covers the current year througl build out of the City. This program has had a significant effect on the buildinc industry by reducing the number of dwelling units constructed in 1988-89 to 320. This compares to 482 housing units constructed in 1987-88 and 2,039 unit: constructed in 1986-87. The most significant aspect of growth management for 1988-89 was the City’s effort to create a comprehensive Growth Management Financing Program. This program attempts to draw the infrastructure fundinc needs of the City and other agencies, such as schools, together with the need: of development to fund pub1 ic purpose projects. The coordinated effort depend: on the rational use of Mello-Roos Community Facilities District, 1913/1915 Act Assessment Districts and fee programs to finance facilities concurrent with demand without overburdening the land or home owner. Final action on this program will occur in mid 1989-90. Construction of Capital Projects - The City continued the emphasis on construc- tion of major infrastructure projects during 1988-89. Spending on capital projects reached an all time high in 1988-89 with more than $20 million being improvements to major parks and community buildings. Some of the more significant projects are described below: Street and Traffic Circulation - The City Council continued to emphasize street and road improvements during 1988-89. Projects ranged from small system enhancements such as the intersection improvements at Cannon Road and Carlsbad Boulevard, to major projects such as the reconstruction of a portion of Rancho Santa Fe Road, the completion of College Boulevard, and the construction of six lanes on Palomar Airport Road from 1-5 to invested in infrastructure. Projects ranged from small signal and intersection 2 1- 1 I t I I I t I I I Pal omar Ai rport . The Coll ege Boul evard and Pal omar Ai rport Road pro jec with some City participation. 0 Calavera Hills Park - In 1987-88, the City completed construction Phase I of Calavera Hills Park, a 10-acre park providing lighted ba fields, tennis courts, tot lot and picnic area to the residents northeast Carlsbad. Phase I1 of Calavera Hills Park, which beg construction during 1987-88, was completed during 1988-89. Phase included the addition of a 17,000 square foot community center, tenn courts and ball fields. Fire Station #5 - The City began construction of Fire Station #5 duri late 1987-88. This project, completed in 1988-89, now provides fi administrative offices, training facility and fire fighting capabili for the central portion of Carlsbad. 0 Carlsbad Senior Center - This facility began construction in 1988-8 and activity rooms to the senior citizen population of Carlsbad. addition, a joint use agreement with the Carlsbad Unified School Distri has provided the site for the building in exchange for the constructi of 14,000 square feet of office space for the District administrati off ices. Transient OccuDancv Tax - The voters of Carlsbad approved a ballot measure June 6, 1989, authorizing an increase in the Transient Occupancy Tax from t present 8% to 9% in August, 1989 and 10% in January, 1990. This measure wi provide the City General Fund with about $500,000 in additional revenue in 198 90. Golf Course - On the same ballot, the voters also directed the City Council proceed with the construction of a variety of recreational facilities includi golf courses, soccer fields and tennis facilities. Planning has begun for t construction of these facilities over the new few years. were funded through the use of i913/1915 Act assessment district bon 0 When completed next year it will provide 12,000 square feet of offic . a I I Fi nand a1 Statement Format This report is designed to provide both summarized and detailed information 1 the operation of each of the City’s funds. The report is organized as follow Financial Section - This section contains the combined or sum- marized financial statements for all funds as well as the notes to the financial statements. the activity within each fund including revenue expenditures , changes in fund bal ances , compari so to budget figures and other related data. Supplemental Data - This section provides more detailed information It 1 It I # 3 Statistical Section - This section provides data on the City's fiscal activity over the past ten years including revenues expenditures, debt, assessed value, and demographi information. Accountins System and Budqetary Control The City's accounting system is designed around a few basic principles. (1) The City is not one single entity. It is the total of many entities, eacl with its separate function and legal restrictions on the use of resources In the private sector, a corporation may have many "subsidiaries" which makr up the parent corporation. In the public sector, a city government may haw a variety of "funds" that provide the basis for separately recording thc financial data related to a specific activity. A fund is an accountinc entity with a complete set of self-balancing accounting records. Each func has been established because of some restriction on the use of resource: received by that fund. This report includes the transactions of all entitie: over which the City Council of the City of Carlsbad has authority (as definec by the Governmental Accounting Standards Board). (2) The City's accounting system operates on a modified accrual basis for all governmental type funds. Governmental funds include the General ? Speci a1 Revenue, Debt Service and Capital Project Funds. A modified accrual systen is one where a) revenues are recorded when received in cash; b) revenues arc accrued when they are both measurable and collectable within the accountinc period or soon enough after the end of the period to pay liabilities of the period; and c) expenditures, other than interest or long term debt, are recorded when liabilities are incurred. (3) The proprietary fund types (the Water Utility, Sewer Enterprise and Internal Service Funds) use the accrual method of accounting. Revenues and expenses are recorded when earned and incurred, respectively. (4) 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 f i nanci a1 record keeping system. (5) 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 should not exceed budgeted figures. All appropriations expire at year end 4 I 1 unless specifically carried into the new fiscal year by Council action The Carl sbad Municipal Code requires that the Finance Director annual 1 prepare a budget for the City Manager showing estimated revenues an 1 expenditures. 8 Total City ODerations During 1988-89 the City staff of 458 full-time employees provided a complet range of City services to the 62,030 residents and many businesses in Carlsbad Spending on all City programs totaled $64.2 million in 1988-89, an increase c $15.5 million over 1987-88. This increase can be traced to the City’ construction program for major capital improvements which reached a new high i funding 26 new positions, increased charges from internal service funds continued emphasis of the street maintenance program, operating new capita facilities and the funding of salary contracts with the three bargaining unit and management. Revenues for 1988-89 totaled $63.9 million, an increase of about $13.2 millic or 26% over last years total of $50.7 million. This increase is directly link€ to several factors including: a continued increase in the City’s property ta base, strong growth in the sales tax base, a voter approved increase in tt transient tax rate, a high level of development activity related to the plannir process, and higher charges from internal service funds to the user departments Carlsbad is entering 1988-89 in a fiscally sound position due to the Cit Council’s actions anticipating the downswing in development activity caused t implementation of the Growth Management program in 1987-88 and 1988-89. Tt general outlook for the next five years is promising with a growing tax baz providing the financing required to meet the demand for services. The following report summarizes the revenues and expenditures (or expenses) fc the City of Carlsbad for the fiscal year ended June 30, 1989. I I 1 t I E I I I 1 1988-89, An increase is seen in General Fund expenditures due to the cost c 1 Revenue from All Fund Types (In thousands) 1988-89 over 1988-89 1987-88 (underl1987-88 % Chanqc General Fund $36,547 $28,257 $ 8,290 29.3% Speci a1 Revenue Funds 3,035 2,943 92 3.1 Debt Service Funds 1,462 1,224 238 19.4 Capital Project F nds 13,521 10,346 3,175 30.7 Internal Service Funds(’) 4,553 3,524 1,029 29.2 Enterprise Funds tl’f 4,738 4,400 338 7.7 26.0% I TOTAL REVENUES $63,856 $50,694 $13,162 VI Includes operating and non-operating revenues 5 e l I Expenditures (or Expenses) All Fund TvDes (In thousands) 1988-89 over 1988-89 1987-88 lunderl1987-88 % Chanq General Fund $29,936 $25,533 $ 4,403 17.2 Speci a1 Revenue Funds 2,620 2,718 ( ( 3.6 115.2 Debt Service Funds 2 9 796 1,299 Capital Project F nds 20,393 12,410 7,983 64.3 Internal Service Funds(') 4,870 3,405 1,465 43.0 TOTAL EXPENDITURES $64,232 $48,729 $15,503 31.8 (I) Incl udes operat i ng and non-operat i ng expenses 98) 1,497 Enterprise Funds (I!-! 3,617 3,364 2 53 7.5 General Governmental Functions The General Governmental function includes the operations of the General, Specia Revenue, Debt Service and Capital Project funds. During 1988-89 revenue fro1 all Governmental funds totaled $54.6 million, an increase of $11.8 million ove 1987-88; expenditures totaled $55.7 million, up $13.4 million over last year. A brief look at these numbers on a fund-by-fund basis is shown below. General Fund The City's General Fund is used to record all revenues and expenditures no1 specifically restricted by law or Council policy. Major sources of revenuf include property tax, sales tax, licenses and permits, and charges for services. Major categories of expenditures include police and fire services, libraries, parks, street maintenance, and administrative functions. General Fund revenues for 1988-89 totaled $36.5 million, up $8.3 million or about 29.3% over the 1987-88 revenue of $28.3 million. This increase is due primarily to the following factors: 0 ProDertv Tax Revenue - $10.3 million Property Tax increased $1.7 million or 19.8% over 1987-88 due to a continual increase in the secured property tax base. Although the rate of development slowed significantly during the year, the value of new construction and rate of resales remained high. Several major properties changed hands this year, providing a boost to the City's tax base. Assessed valuation rose from $4.0 billion in 1987-88 to $4.3 billion in 1988-89, a 7.5% increase. Sales tax revenue increased $1.1 million or 15.5% during 1988-89. This increase reflects the new car dealership and shopping mall addition that brought increased sales to Carlsbad. 0 Sales Tax Revenue - $8.2 million 6 I I I I I R I Ili I 1 1 E I I B I 0 Vehicle License Fee Revenue - $2.0 million Vehicle license fee revenue increased by $186,000 or 10.1% during 1988 89. The vehicle license fee is set and collected by the State Departmen of Motor Vehicles. Although DMV cannot readily provide statistics fo the Carlsbad area, they indicate that the growth in fee revenue is du to an increase in the number of vehicles and a lowering of the averag age of vehicles owned by Carlsbad residents. Transient occupancy tax (hotel room tax) revenues rose by more tha $750,000 or 37.9% over 1987-88. About $650,000 of this increase is du to an increase in the transient occupancy tax rate from 6% to 8"h at th start of this year. In spite of slowing construction activity caused by the Growt Management Program, the devel opment community continues to process pl an and applications in anticipation of meeting the growth managemen standards in the future. Revenue in 1988-89 from development relate fees and permits totals $4.8 million, up $2.1 million over 1987-88 This increase of 79% indicates the high level of interest in buildin 0 Transient Occupancy Tax Revenue - $2.8 million 0 Develooment Related Revenues - $4.8 million 4 in Carlsbad. 0 Interest Income - $2.1 million Interest income has risen to-$2.1 million for 1988-89, an increase o $1.0 million or 97% over 1987-88. This increase represents both highe average interest rates for 1988-89 and a larger cash portfolio. The City received a reimbursement for prior payments to the Publi Employees Retirement Systems (PERS) of $970,000 in 1988-89. This i a one time repayment based on calculations of overpayments done by PERS The following table summarizes General Fund revenues by major category for 1988 89 and 1987-88: 0 Reimbursed Exoenditures - $1.0 million I General Fund Revenues (in thousands) 1988-89 over Cateqory 1988-89 1987-88 (underl1987-88 % Chang Taxes $22,615 $19,197 $3,418 17.8% Licenses & Permits 4,555 4,138 417 10.1 Charges for Services 4,024 2,250 1,774 78.8 Fines & Forfeitures 479 43 5 44 10.1 Interest Income 2,087 1,061 1,026 96.7 Other 2,787 1,176 1,611 137.0 I $36,547 $28,257 $8,290 29.3% 7 General Fund expenditures totaled $29.9 million for 1988-89, up $4.4 million o 17.2% over 1987-88. This increase is due primarily to the following: e Public Safety Spending on public safety programs totaled $11.7 million, up $1.6 millio or 16.1% over 1987-88. This increase reflects efforts to maintain ful safety service staffing and the opening of Fire Stations No. 5 and No 6 in central southwest Carlsbad. Other cost increases have been he1 to a minimum. e Public Works Public Works program spending grew by $0.9 million or about 19.3% i and maintenance program. Culture and Recreation spending rose $0.6 million or 11.7% over 1987-8; due to the opening of a new park in northeast Carlsbad and mino' increases in general operating costs for the Library and Park Departments. Spending i n general government and admi ni strati ve programs rose by $1.: million or about 22.3%. This increase is spread throughout the man: departments in this category. Major factors in this increase include additional changes from internal service funds, costs related to thc development of the growth management finance program, general sal ar: increases, general fund expenditures on minor capital improvements increased building maintenance efforts, and the recording of interest paid on fines deposited by developers as bonds or guarantees, as requirec 1988-89. This increase is directly related to the City's street overla. e Culture and Recreation e General Government by state law. Total General Fund expenditures are summarized in the table below: General Fund Expenditures (in thousands) 1988-89 over Cateqory 1988-89 1987-88 (under)1987-88 % Chanqe General Government $ 6,971 $ 5,698 $1,273 22.3% Publ i c Safety 11,728 10,102 1,626 16.1 Publ i c Works 5,751 4,820 93 1 19.3 Cul ture & Recreat i on 5,486 4,913 573 11.7 $29,936 $25,533 $4,403 17.2% 8 1 a I 1 I R I I I t I 1 I I 1 I 1 Speci a1 Revenue Funds The City’s Special Revenue Funds, which account for the collection and use o special or restricted revenues, received $3.0 million in total revenue in 1988 89. This’ is an increase of $92,000 or about 3% over last year. This change i the net result of a small reduction in total grants received by the City, offse by increased interest and collections of special charges or donations to th senior center program and street lighting fund. 1 Speci a1 Revenue Funds Revenues (in thousands) 1988-89 over Cat eqor Y 1988-89 1987-88 (underl1987-88 % Chanq Taxes $ 754 $ 724 $ 30 4.1% In tergovernmen t a1 1,836 1 , 933 ( 97) ( 5-01 ( 8.5) Charges for Services 65 71 ( 6) 77.3 Interest Income 211 119 92 Other 169 96 73 76.0 $3,035 $2,943 IL32.- 3.1% Expenditures from the Special Revenue Funds support a wide variety of progran and projects. Some of the major uses of funds include: 0 Public works programs such as street lighting. 0 Cultural programs, including grants from the California Library Servicc Act, the Adult Learning program, and the Senior Nutrition program. Special programs such as the Police Asset Forfeiture program and Civic Arl program. Welfare programs such as the HUD-sponsored Carlsbad Housing Authority rent: assistance program. Spending in Special Revenue Funds totaled $2.6 million in 1988-89, an decrea: of $98,000 or about 3.6% from 1987-88. As the table below shows, major decreasc were seen in the capital projects and culture and recreation categories. Thi 0 0 1 reflects the completion of several major grant funded projects during 1987-8t 9 Speci a1 Revenue Funds Expenditures (in thousands) Cateqory 1988 - 89 1987-88 (under) 1987-88 % Chanqc General Government $ 99 $ 28 $ 71 253.6% Pub1 i c Works 585 556 29 5.2 ( 27.8) 1.8 Cul ture & Recreation 322 446 ( 124) We1 fare 1,614 1,585 29 (100.0) ( 3.61% Capital Out1 ay -0- 103 ( 103) $2,620 $2,718 ( ,$98) 1988-89 Over CaDi tal Project Funds Under the accounting definition used by the City, a capital project fund is one that accounts for the receipt and disbursement of monies that are restricted for the acquisition or construction of capital facilities (other than those financed by enterprise funds) o Capital projects funds for the City of Carlsbad include those supported by the City's pub1 ic facilities fees, park in-1 ieu (park development) fees, drainage fees, traffic impact fees, bridge and thoroughfare district fees, gas tax funds and general funds ear-marked for capital purposes in the Capital Construction included in this group. Revenue in the capital projects funds totaled $13.5 million, up $3.2 million or 30.7% from the 1987-88 total of $10.3 million. This increase is due to a combination of factors, the most prominent of which is the contributions from peroperty owners in assessment districts, offset by the reduced revenue from fees charged to developers building within Carlsbad. During 1988-89, the rate of development continued to slow, thereby reducing the collections from develop- ment related fees. Fund. The capital projects supported by the City's Redevelopment Agency are also Capital Projects Funds Revenues ( in thousands) 1988-89 Over Cateqory 1988-89 1987-88 (under)1987-88 % Chanqe Taxes $ 1,647 $ 1,661 8 (14) -% Intergovernmental 1 , 041 573 468 81.7 Charges for Services 3,092 5,969 (2 ? 877) (48.2) Interest 3,008 2,131 877 41.1 Contributions from Other 203 12 191 - Property Owners 4,530 4,530 100 - $13,521 $10,346 $ 3,175 (30.7%1 10 1 I I I t 8 1 1 I I I 8 II I II I I I Spending on capital projects totaled $20.4 million, an increase of $8.0 millio or 64.3% over 1987-88. This level of capital project construction represent the fifth year of the City's major effort which has provided more than $8 million in improvements. Projects planned for 1989-90 could carry this tren into a sixth year with more than $31 million of capital projects budgeted in th new year. The City Council continues to set a high priority on the constructio of qual i ty infrastructure improvements. Some of the key projects under construction or completed during this yea include: 0 Storm Drain Masterulan - This plan defines the capital needs for th storm drainage program from today to buildout. 0 Carlsbad Boulevard Wideninq - This improvements widens Carlsba Boulevard from two lanes to four lanes from Agua Hedionda to Cannc Road. Desiqn of the Rancho Santa Fe Road Interim Improvements - This projec occur in 1989-90. 0 Chase Field ImDrovements - This major renovation of Chase Field provide a better, more usable athletic facility at Chase Field. 0 Fire Station No. 5 - This project provided a major fire station ar administration facility for the center of the City. Calavera Hills Park Phase I1 - The construction of the final eight acrc of this park and the 17,000 square foot community facility complete this community park in the northeast quadrant of the City. Palomar AirDort Road and Colleqe Boulevard Assessment District - The: major circulation system links provide for traffic flow to the centt of Carlsbad from now through buildout. 0 will eliminate the "S" curve on Rancho Santa Fe Road. Construction wil 0 0 m Carlsbad Senior Center - This major civic facility designed to sen the senior citizen population of Carlsbad is scheduled for dedicatic Downtown StreetscaDe Proqram - Phase I and I1 of the Streetscape progri will beautify the downtown area with improvements to Carl sbad Boulevar and Elm Avenue. 1 in December, 1989. 0 11 Capital Project Funds Expenditures (in thousands) 1988-89 over Cat eqory 1988-89 1987-88 junder) 1987-88 % Chanqc General Government $ 63 $ 253 $( 190) (75.1) Capital Projects 19 9 787 11,114 8,673 78.0 Principal, Interest and Fiscal Charges 543 1,043 ( 500) (64.3) $20,393 $12,410 $ 7,983 64.3% Debt Service Funds The City’s Debt Service funds record the payment of interest and principal or the current portion of outstanding debt. At June 30, 1989, the total debt payable from non-enterprise sources was $32 mill ion, comprised of Library, Sewer, Parking Authority and Building Authority Bonds, Hosp Grove Certificates of Participation, College Boulevard 1915 Act Assessment District bond issue anc Redevel opment Tax A1 1 ocat i on Bonds. Revenues for 1988-89 reflect an increase of $238,000 over 1987-88. This change is directly related to the City’s issuance of the Hosp Grove Certificates of participation and the Redevelopment Agency’s Tax Allocation bond issue during 1987-88. Funds held on deposit for these issues have increased the total interest earnings for debt service funds. Debt Service Funds Revenues (in thousands) 1988-89 over Cat eqory 1988-89 1987-88 (under) 1987-88 % Chanqe Taxes $1,124 $1,111 $ 13 1.1% Interest 338 113 225 199.1 Debt related expenditures also rose in 1988-89 because of the debt issues completed in 1987-88. The timing of principal and interest payments on these issues has caused the full effect of the repayment schedules to be seen in this year. Further information on each bond issue is included in the footnotes to the f inanci a1 report. $1,462 $1,224 $238 19.4% 12 I I I B I 8 I I I I 8 I I I I R I Debt Service Funds Expenditures (in thousands) Cat eq or y 1988-89 1987-88 (underl1987-88 % Chanqi Principal $ 535 $ 300 $ 235 78.3% Interest 2,254 99 1 1,263 127.4 115.2% Other 1988-89 over u 7 8 1) $2,796 $1,299 $1,497 The City's tax rate to support general obligation debt for 1988-89 dropped 2.2 from the 1987-88 rates. Increased assessed valuation and a growing tax base mad these decreases possible. Property Tax Rates Supporting General Obligation Bonds 1988-89 over 1988-89 1987-88 (underl1987-88 % Chanq -00041% .00047% ( .00006)% (12.8)% Library bonds ( 0.61% Sewer Bonds -003 16% .00318% (.00008)% ( 2.2)'Z .00357% .00365% I Enterprise Operations J .00002 1% Carlsbad operates a Water Utility and a Sewer Enterprise Fund. An enterpris fund is one where most or all of the costs involved are supported by user fees Within these funds the City uses many of the accounting practices applicable t commercial business including the recording of depreciation on fixed assets ar the allocation of overhead costs from support services. User fees are set c an annual basis to cover both operating costs and debt service needs. Revenue in the enterprise funds totaled $4.7 million, up $338,000 or about 7.7 from 1987-88. This increase is primarily due to a growth in the service systc customer base. I 13 Enterprise Funds (in thousands) Cat eqory 1988-89 1987-88 (under)1987-88 % Chanc Total Operating and Non-Operati ng Revenues 1988-89 over Water Utility $1,760 $1,638 $ 122 7.4% Sewer 2,978 2 % 762 216 7.8% $4,738 $4,400 $ 338 7.7% Expenses in the Enterprise Funds totaled $3.6 million, up $252,000 over 1987- 88. This increase is primarily due to additional charges for services provided by other City departments and general cost increases in operating costs offset by a reduction in one time bad debt expenses experienced in 1987-88 and reduced water system repair costs. During this same period the number of accounts provided with water and/or sewer service grew from 14,830 to 15,580, an increase of 750 accounts or 5%. Enterprise Funds Total Operating and Non-Operating Expenses (in thousands) 1988-89 over Cat eqor y 1988 -89 1987-88 junder11987-88 % Chanqe Water Utility $1,217 $1,450 $ (233) (16.1)% Sewer - 2,400 1,915 485 25.3 $3,617 ‘$3,365 $252 7.5% . Water Revenue bonds outstanding at June 30, 1988, totaled $325,000. There were no revenue bonds issued from enterprise funds during 1988-89. Internal Service Funds Internal Service Funds are used to account for services provided by a City department for other City departments. As with an Enterprise Fund, the source of revenue is user fees charged to the departments receiving the service. SELF- INSURANCE PROGRAM--WORKERS’ COMPENSATION & GENERAL LIABILITY The City has been self-insured for Workers’ Compensation since September, 1978. The activity for this program is recorded in the Workers’ Compensation Self- Insurance Internal Service Fund. Workers‘ compensation cl aims for 1988-89 14 I 1 I 1 I I I I 1 I 1 I I 1 I amounted to $468,000 compared to $403,000 in 1987-88, an increase of abc $65,000 or 16%. The estimated claims payable at year end were $671,000, $251,000 or 60% over last year. Unreserved retained earnings totaled $674,C at June 30, 1989. The General Liability Self-Insurance Fund was established near the end of 191 81. Claims expense for 1988-89 totaled $1.3 million, up $462,000 or 54.0% 01 the 1987-88 total of $855,000. The estimated claims payable at year end WE $1.9 million. Unreserved retained earnings totaled $821,000 at June 30, 19E 1 OTHER INTERNAL SERVICE FUNDS The City operates a central vehicle maintenance program servicing and replac. both the rolling stock and small machinery. Operating costs for this progi were $1.4 million for 1988-89, up $508,000 or 59% over the 1987-88 total $866,000. A large portion of this increase can be attributed to changes in 1 City’s practices related to charging this fund for services performed by 0th departments and an increase in fixed assets. The City also operates a health insurance internal service fund for collecti premiums, paying the insurance carrier, and holding reserve funds. At June 3 1989, total health insurance retained earnings totaled $588,000. The City’s Data Processing internal service fund collects revenues and expens related to the providing of data processing services to the City. 1 1 Aqencv Funds The City uses Agency Funds to account for assets held by the City for 0th individuals, entities or governments. Typically these funds relate contractors’ cash performance bonds, empl oyee payroll deductions, or deferr compensation accounts. The City held a total of $8.8 million in Agency Funds as of June 30, 19E compared to $5.4 million at the end of 1987-88. This increase of $3.4 milli is due to several factors including: 1) the deposit of an additional $460,C into the City’s deferred compensation plans; 2) a net increase of $3.9 milli in contractor and mi scell aneous deposits held by the City to guarantee develop or contractor performance; and 3) the deposit of $0.9 million of assessme district funds which are held by the City for road and drainage improvements I 15 Cash Manaqement The City Treasurer is charged with the responsibility of safeguarding the City’ assets, receiving all payments due the City and investing all inactive funds During this year the City Treasurer earned about $7.2 million in interest on investments in all fund types from instruments earning from 0% to 10.6%, compare to earnings of $4.9 million during 1987-88. Funds are invested in various type of instruments as shown below. At June 30, 1989, the Treasurer had 100% of a1 available funds invested. The City’s total portfolio at year end was $80. mil 1 ion. Below is a summary of cash and investments outstanding as of June 30, 1989: Amount Invested Interest Rates (in millions) Cash 0,OO - 9.40 $ 08 Certificates of Deposit 8.00 - 10.50 18.8 Other Deposits 0.00 - 9.21 112.2 Federal Agency Notes 7.26 - 10.37 14.5 Treasury Coupons 8.10 - 9.30 4.3 Corporate Notes 7.45 - 10.60 8.6 Commerci a1 Paper 9.56 - 9.85 1 .o Bankers Acceptances 9.26 - 10.63 5.4 $80.9 Miscellaneous Investments 7.10 - 9.15 15.3 The City Council has adopted a comprehensive investment policy (as required b. State law) specifying the type and term of City investments. This policy ha a1 lowed the City Treasurer flexi bil i ty without endangering the safety, 1 iquidi t. or yield of the total portfolio. Debt. Administration The ratio of net bonded debt to assessed valuation and the amount of bonded deb per capita are useful indicators of the City’s debt position to management citizens and investors. These data for the City for the year ended June 30 1989, are as follows: Ratio of debt to Debt Amount Net Assessed Value Per CaDi ta Net general bonded debt $420,000 0.01% $6.77 This debt represents obligations payable directly from a tax levy applied tc property within the City of Carlsbad. The City‘s general bonded debt includes outstanding Library and Sewer bonds. 16 1 I I I I 1 I I CITY OF CARLSBAD PROPOSITION 4 SPENDING LIMIT VS. APPROPRIATION OF PROCEEDS OF TAXES (Millions) 40 30 20 10 0 81 82 83 84 85 86 87 88 89 FISCAL YEAR - APPROP OF TAXES m SPENDING LIMIT Economic Out1 ook The City’s Capital Improvement Program calls for the construction of more tha $300 million in improvements between now and buildout. This program include new parks, libraries, fire stations, streets and other facilities to maintai the level of service offered to the Carlsbad resident. This aggressiv construction program will place a burden on the operating budget that must b managed through careful schedul ing to match demands with resources. Uncontroll e demand would easily out-pace the City’s ability to pay for services. The expansion of retail sales facilities, the addition of UP to 11 new aut dealerships, several small commercial centers, and continued plans for th construction of a group of major shopping centers as well as the constructio of a major hotel in southern Carlsbad, provide the much needed tax base t finance the growing service needs. Further, the continued industrial developmeni in the Palomar Airport Industrial Park area will add to Carlsbad‘s economic health. The citizens have also assisted in financing Carlsbad’s future operating need: by approving a second 2% increase in the Transient Occupancy Tax, raising thc City’s TOT rate to 10% by 1990. This increase will provide more than $550,00( in 1989-90 toward General Fund operating costs. The City‘s Growth Management Program holds the key to the timing of many of tht developments that will support the City through fees and taxes. This program is designed to guarantee that no new development occurs without careful planning of infrastructure and services. This process will cause some development to be delayed or revised in scope during the planning process, which in turn may delaj the city‘s ability to collect additional revenue City staff is currently involved in a long range financing program which address the funding needs of the City’s $300 million capital improvement program, more than $150 million in street improvements and $120 mill ion of school district financing requirements. This program will be presented to Council in late 1989. Carlsbad’s general outlook is for a healthy economy with adequate General Fund budgets for the next two years as the Growth Management Program begins to allow some key developments to occur. The City should see some ability to expand services in the future without depending on tax increases. The years following appear to offer expanding opportunities for the City Council to enhance service to the community. 18 I I I 1 8 I 8 I 1 1 I 1 I I I I 1 I Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canac a Certificate of Achievement for Excellence in Financial Reporting to the Ci of Carlsbad for its comprehensive annual financial report for the fiscal ye( ended June 30, 1988. In order to be awarded a Certificate of Achievement, governmental unit must publish an easily readable and efficiently organizi comprehensive annual financial report, whose contents conform to progr, standards. Such reports must satisfy both generally accepted accountil principles and applicable legal requirements. A Certificate of Achievement valid for a period of one year only. We believe our current report continu to conform to the Certificate of Achievement Program requirements, and we a submitting it to GFOA to determine its eligibility for another certificate. (GFOA) and the California Society of Municipal Finance Officers (CSMFO) award[ Acknowl edqments This report has been a joint effort by many people from many different areas ( responsibility. The dedicated efforts of Sandra Schmidt, Assistant Financ Director, and her accounting staff, deserve full credit for the preparation ar contents of this report. We appreciate Lisa Hildabrand and Sue Garton of KPF was conducted. It has been a pleasure to work with the KPMG Peat Marwick sta. Peat Marwick for the professional way in which the audit of this financial repoi I throughout this period. ul ly submitted, RespeY! /;i .' " , ! / J ;'/ /1 i JAMES F. ELLIOTT +, /--& i ' .J. /'/ '""/@/ %+-- ., ' Fi?*ance Director B tlg 19 20 -7- I I I 1 8 I I 1 I 8 I 8 1 8 I I I 1 I FAUBR- CAMP PENOLETON 21 Certificate of Achievement for Excellence in Financial Reporting City of Carlsbad, California Presented to For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1988 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. &LE %pF ;c' UMITDSlAIES' p c .-,.9, @ ; UUm)RllM E President 70a sF.AL,.p Q PICICQ 12 Executive Director 22 .I = q$j &E: ‘F; *% I .E 3 b u $0 z =m ds 2 -a 2 !g kt’ 0 G wj .& la; -a L, n a Qsr 2Tl -Q LLI ww <ii c) \ y&p p Zf f \ ia < CI+ OF CARLSBAD ELECTED CITY OFFICIALS Claude A. Lewis, Mayor Ann J. Kulchin, Mayor Pro Tern John J. Mamaux, Council Member Mark V. Pettine, Council Member Eric Larson, Counci 1 Member Aletha L. Rautenkranz, City Clerk William C. Esterline, City Treasurer ADMINISTRATION AND DEPARTMENT HEADS Raymond R. Patchett, City Manager Frank Mannen, Assistant City Manager Martin Orenyak, Community Development Director Vincent F. Biondo, Jr., City Attorney Ralph Anderson, Utilities/ Mi chael Hol zmi 11 er, Maintenance Director P1 anni ng Director David Bradstreet, Parks and Clifford Lange, Library Director Recreation director Ann Jensen, Personnel Director James F. E77 iott, Finance Director James Thompson, Fire Chief Ruth Fletcher, Purchasing Officer Robert Vales, Police Chief Lloyd Hubbs, City Engineer CHAIRPERSONS, COMMISSIONS AND BOARDS Matt Hall Cami 11 e Mi tkevich Personnel Board Marvin Cap Building Authority Jack Jardi ne Parking Authority Mary Melideo Traffic Safety Commission Mi 1 ton Cooper Tony Lawson Linwood J. Van Senior Citizen Commission Matt Hall Design Review Board Thelma Hays Joe Bear Arts Commission Roy 51 ackford Robert Sheppard Cable Television Foundation P1 anni ng Commi ssi on Library Board Parks and Recreation Commission Housing and Redevelopment Committee Historic Preservation Commission 24 R 1 1 I II 1 1 I I Ia I I 1 I I I t I a a a a b * c m 5 w QD 4 a0 US i,- Sa zg -tz UPE 5 *t QIDS m* I--- -3 G W 52 G $P W CLUJ J Gg s:- ml c -lo~~ ‘ r dl- QD CZ - pe *a - +< 31 0- ON *z La oa 0 - 7 QD a 23 2 oc gem =*ga, roF*rncz3 $I Lg *zg c ~-IQ~<S ” wzrprr dC-=-(lb OSQ QD (IIW ZiK x a-00 PC31 43 =<z QD w OO“.Sml#Co - 24 (iu9*gz:1 6 r~~6N=mS * -9zE,gd gz .‘mgg<cpE QD *P&SI=iW is= YQD P=FC c :fZ~~~,~ - &tetbq=gf 4) G stby z go < SiE g+i PI* maoo LZakEco, =rnac=O-- *acr 3 C0bO 4 . w44010QD =g+Do-”E de *-a %<<<Ea-J 2 - az e 25 .. 4 * *- f - -- e -/ E;;*- .. . 26 KPMG Peat Marwick I I I I I I 1 I I I I I I I I II I I Certified Public Accountants Peat Marwick Main & Co. 750 B Street San Diego, CA 92101 Indeoendent Auditors' Reuort The Honorable Members of City Council City of Carlsbad, California: We have audited the general purpose financial statements of the City of Carlsbad, California, as of and for the year ended June 30, 1989, as listed in the accompanying table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial ,statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Carlsbad, California, at June 30, 1989, and the results of it8 operations and the changes in financial position of ita proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and individual account group financial statements and schedules listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Carlsbad, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. I P& &!&& sco, October 20, 1989 27 Member Firm of Klynveld Pear Manwck Goerdeier CITY OF CARLSBAD Combined Balance Sheet All Fund Types and Account Groups June 30, 1989 Governmen tal Fund TvDes Special Debt Capital Assets Notes General Revenue Service Pro iec ts Cash and investments 4 $ 11,087,338 2,116,353 4,737,013 31,734,286 Receivables : Loans - - - 184,839 Taxes 1,750,821 85 , 198 2,784 306,767 Accounts, net 225,922 18,575 - 286,466 Accrued interest 289,312 16,813 96,564 465,686 Due. from other funds 13 732,138 - - - Due from other Advances to other 226 , 003 governments 11,000 87,919 - funds 12 2,044,787 - - 4,757 , 352 Inventory, at cost 35,428 - - - Prepaid expenses 36,000 113,858 - - Restricted assets: Cash and Accrued interest - - - - equipment , net 5 debt service funds - - - - provided for ret iremen t of general long- term debt - - - - - - - - inves tmen t s 4 Property, plant and Amount available in Amount to be - - - - Total assets $ 16.212.746 2.623.553 4.836.36 1 37, 776.564 See accompanying notes to financial statements. 28 I I 1 I I I I 1 I I I T I 1 1 1 1 I Fiduciary Proprietary Fund Tvpes Fund Type Account GrouDs Total Internal General Long- (Memorandu En t e rur i s e Service Aaencv Fixed Assets Term Debt onlv) 12,818,660 5,140,888 3,820,694 - - 76,455,231 - - - - 184,83! - - - - - 2,145,57( 1,726,090 9,273 - - - 2,266,321 130,333 54,051 17,121 - - 1,069,88( 106,323 - - 0 - 0 838,46. - - - - - 324,92 - - - - - 6,802,13' - - - 199,40! - - - - - 149 , 85; 163,980 - 4,396,934 - - - - 4,396,931 45,302 - - - - 45,30 27,957,364 1,646,311 - 50,164,336 - 79,768,Ol - - - - 4,742,763 4,742,76 - - - - 29.281.992 29.281.99 8.83 I 47.344.986 6.850.5 23 7.815 50.164.336 34.024.755 208.6 71.61 29 CITY OF CARLSBAD Combined Balance Sheet All Fund Types and Account Groups, Continued June 30, 1989 Governmental Fund Tvues Special Debt Capital - Notes- Revenue Service Proiecb 1 , 353,ZO' Accrued wages payable 1 , 230 , 001 27,411 - 16,851 Due to other funds 13 - - - 732,13t Advances from other funds 12 - - - 6,802,13' Due to other governments - 72,933 - - Deposits payable - - - - Estimated claims payable - - - - Accrued interest payable 2V39542 - 7 9 909 - Assessments payab le - - - - Current portion of revenue Deferred revenue 860,100 44 , 706 85 , 689 178,825 Special assessment debt Accounts payable $ 502,498 51 , 127 - Deferred compensation - - - - payab 1 e 8 - - - - bonds payable 11 Bonds and notes payable 11 - - - - with governmental commitment 11 capital leases 9,11 - - - - - - - - Obligations under Total liabilities 2.796. 141 196.177 93.598 9.083.166 Fund Eauitv - - - - Contributed capital 15 Investment in general fixed assets - - - - Reserved 14 2,782,622 1,088,637 4,742,763 14,891,727 Unreserved 14 10,633,983 1,338,741 - 13,801,667 Reserved 14 Unreserved 14 Fund balances : Retained earnings: - - - - - - - - Total fund equity 13.416.605 2.427.378 4.742.763 28.693.39 4 Total liabilities and fund equity $ 16.212.746 2.623.555 4.836.36 1 37.776.564 See accompanying notes to financial statements. 30 I II I 1 I I I I 1 IE 1 1 I 1 I 1 I I- Proprietary Fiduciary Fund TvDes Fund TvDe Accoun t Grows To tal EnterDrise Sew ice Aaencv Fixed Assets Term Debt onlv) Internal General Long- (Memorandi 1,414,951 147,257 8,263 - - 3,477,30 106,323 - - - - 838 , 46 - - - - - 6,8Q2,13 - - - - - 72,93 39,211 6,006 - - - 1,319,48 65,951 - 6,203 , 65 2 - - 6,269,60 - - 1,718,197 - - 1,718,lS - 2,5 77 , 645 - - - 2,577,64 - - - - - 211,45 - - 907,703 - - 907 , 7C 160,000 - - - - 160,OC - - - - 3,240 , 09 163 , 766 - - - 23,165,000 23,328,76 a 2,070,778 - - - - 9,305,000 9 , 305, OC - - - - 1.55 4.755 1.554.75 L .020.980 2 - 730 - 908 8.837.8 15 - 34.024.755 61.783.54 16,251,933 2,843,001 - - - 19,094,9? - - - 50,164,336 - 50,164,3: - - - - - 23,505 , 7t - - - - - 25,774,35 175,259 - - - - 175,Z: 26.896.814 1.276.6 14 - - - 28 173.4i - 4.336 - 146.888.0, C 43.324.006 4.119.615 6.850.523 8,837.812 $0. 164.336 34.024.755 208.671.6; 50.16 47,344,986 31 CIm OF CARLSBAD Combined Statement of Revenues, Expenditures and Changes in Fund Balance All Governmental Fund Types For the year ended June 30, 1989 General Revenues : Taxes $ 22,614,962 Licenses and permits 4,554,879 Intergovernmental a Charges for services 4,024,293 Fines and forfeits 478,830 Interest income 2,087,490 Miscellaneous 2.786. 480 Total revenues 36.546.934 Contributions from property owners - Expenditures: Current : General government 6,970,659 Public safety 11,728,140 Public works 5,751,486 Welfare - Culture and recreation 5,485,999 Capital outlay - Principal retirement - Debt service : e Interest and fiscal charges Total expenditures 29.936. 284 &cess (deficiency) of revenues over expenditures Operating transfers in e 6.610.650 Other financing sources (uses): Operating transfers (out) ( 1.036.44 7 1 11.036.447 1 Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 5,5 74,203 Fund balance at beginning of year 7,766,454 Residual equity transfers 75.948 Fund balance at end of year $ 13.416.605 See accompanying notes to financial statements. 32 I c I t I I 1 li I li 8 I I I - 1.097.471 (6 1.024 ) - I I 1 I To tal Special Debt Capital (Memorandu Revenue Service Pro iects onlv) 753 y 750 1,123 y 781 1,647,480 26,139,971 - - - 4,554,87! 1,835 , 988 - 1,040,548 2 , 876,53t 65,494 - 3,092,270 7 , 182 , 05; - - - 478,83( 210,637 338,533 3,008,213 5 , 644 , 8 7: - - 4,529,710 4,529,71( 169.166 - 202.5 21 3.158.16; 3.035.035 1.462.314 13.5 20.742 54.565.02: 99,476 6,529 62,425 7,139,08' - - - 11 , 728 , 14( - - 6,336,09: 584 , 607 1,614,015 - - 1,614,011 322,095 - - 5,808,091 - - 19 9 786,724 19,786,72( - 535,000 - 535,001 - 2.254.407 543.447 2.797.851 2.620.193 2.795.936 20.392.596 55.745 -00 414.842 (1 a333 -6 22 1 (6.8 71.854) (1.179.98 - 1,177,715 1 , 004,571 2,182,281 - (80. 244) (1.065.595 1 (2.182.281 1 414,842 (236 , 151) (6 , 932,878) (1,179 , 98 2,088 , 484 4,978,914 35,626,272 50,460,12 - - ( 75.948 1 - 2.427.378 4.742.763 28 . 693.39 4 49.280.14 33 CITY OF CARLSBAD Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) All Governmental Fund Types For the year ended June 30, 1989 General Fund Actual on Variance Budgetary Favorable Budaet Bas is (Unfavorable Revenues : Taxes $ 22,167,000 22,614,962 447,962 Licenses and permits 4,210,000 4,554,879 344,879 Charges for services 2,812,000 4 , 024,293 1,212,293 Fines and fprfeits 393,000 478,830 85,830 Interest income 1,000,000 2,087,490 1,087,490 Miscellaneous 706.000 2.786. 480 2.880. 480 Intergovernmental - - - Total revenues 31 288 .OOQ 36.5 46.934 5.258.93 4 Expenditures: Current : General government 8,285,403 7,144,183 1,141 , 220 Public safety 12,030,357 11,798,944 231,413 Public works 7,186,513 5,956,646 1,229,867 Welfare - - - Culture and recreation 5,6 73,769 5,571,918 101,851 Debt service : Principal ret iremen t - - - Interest and fiscal charges - - - Total expenditures 33.176.042 30.471.691 2.704.35l. Excess (deficiency) of revenues over expenditures (1,888,042) 6,075,243 7,963 , 285 Other financing uses - operating transfers out (1.036. 447) (1.036. 447) . - Excess (deficiency) of revenues over expenditures and other financing uses (2,924,489) 5,038,796 7,963,285 Fund balance at beginning of year 7,766,454 7,766,454 - Residual equity transfers - 75.9 48 75.948 Fund balance at end of year $ 4.841.962 12.881.198 8.039.233 See accompanying notes to financial statements. 34 I 1 L I I t I E 1 1 1 I U t 8 I 1.996.192 2.3 71.025 374.833 126.226 110.014 (1-z) 8 1 I Spec ial Revenue Funds Debt Service Funds Actual on Variance Actual on Variance Budgetary Favorable Budgetary Favorable Budaet Basis (Unfavorable) Budeet Basis (Unfavorable. 690,000 753 , 750 63,750 149,000 138,574 (10,426 ) - - - - - - 1,955,100 1,835,988 (119,112) - - - 61,000 65,494 4,494 - - - - - - - - - 80,000 210,637 130,637 1,100 3,223 2,123 - - - 154.000 169.166 15.166 2.940.100 3.035,035 m 150.10_Q 141,797 (8.303) 115,424 106,946 8,478 - - - 684,325 592,137 92,188 - - - 1,797,309 1,625,739 171,570 - - - 435,334 351 , 724 83,610 - - - - - - 130,000 130,000 - - - - 18.55626.465 (7.909) 3.03 2.392 2.676.5 46 355.846 148.556 156,465 (7.909) (92,292) 358,489 450,781 1,544 (14,668) (16,212) - - - - - - - - - - - - (92,292) 358,489 450,781 1,544 (14,668) (16,212) 2,088,484 2,088,484 - 124,682 124,682 - - (75.9 48) (75.948) - - - 35 CITY OF CARLSBAD Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual, Continued (Budgetary Basis) For the year ended June 30, 1989 Total (Memo randum On 1Y 1 Actual on Variance Favorable Budgetary Budaet Basis (Unf avorab lf Revenues : Taxes $ 23,006,000 23,507,286 501 , 286 Licenses and permits 4,210,000 4,554 , 879 344 , 879 Charges for services 2,873,000 4,089,787 1,216,787 Fines and forfeits 393 , 000 478,830 85,830 Interest income 1,081,100 2,301 , 350 1 , 220 , 250 Miscellaneous 86_0.000 2.955.6 46 2.095.6 46 Total revenues 34.378. 200 39.9 23.766 5.345 366 Intergovernmental 1 , 955 , 100 1,835 , 988 (119,112) Expenditures : Current : General government 8,400,827 7 , 25 1,129 1 , 149,698 Public safety 12,030,357 11,798,944 231,413 Public works 7.870,838 6 .5b8,783 1 . 322 .OS5 Welfare 1,797,309 1,625 , 739 171,570 185 , 461 Culture and recreation 5 , 923,642 6 , 109,103 Debt service: Principal retirement 130 , 000 130,000 - Interest and fiscal charges 18.556 26.465 (7,909) Total expenditures 36.356,990 33.30 4.702 3.052.288 &cess (deficiency) of revenues over expenditures (1,978,790) 6,419,064 8,397,854 Other financing uses - operating transfers out (1.036. 447) (1.036. 447) - Excess (deficiency) of revenues over expenditures and other financing uses (3,015 , 237 1 5,382,617 8 , 397,854 Fund balance at beginning of year 9,979,620 9 , 979,620 - Residual equity transfers - - - 15.362.237 8.397.854 Fund balance at end of year $ 6.9 64.383 See accompanying notes to financial statements. 36 E I CITY OF CARLSBAD Combined Statement of Revenues, Expenses and Changes in Retained Earnings All Proprietary Fund Types For the year ended June 30, 1989 Total Internal (Memo randw Enterprise Service onlv) Operating revenues : Metered water sales $ 1,114,737 - 1,114,737 Sewer service charges 2,096,997 - 2,096,997 Other charges for services 275 y 971 3,878,639 4,154,610 Miscellaneous 57.790 333. 210 391.ooo Total operating revenues 3.545.495 4.211.849 7 757.344 Operating expenses: Personnel services 1 , 223 , 6 27 387,205 1,610,832 Off ice expenses 261,233 530,941 792,174 Professional services 1,122,137 25 , 883 1,148,020 20,062 Purchased water 3,825 - 3,825 Depreciation and amortization 610,722 337,472 948,194 Fue 1 - 220 , 399 220 , 399 Supplies and parts - 138,326 138 y 326 Claims expense - 2.992.740 2.992.740 Repairs and maintenance 308 y 690 174,067 482,757 Insurance 20,062 - Total operating expenses 3.550.296 4.807.033 8.357.329 Operating loss (4.800 (595.18 4) (599,985) Non-operating revenues (expenses ) : Interest income 1 , 192,417 341,491 1,533,908 Interest expense and fiscal agent fees (21 y 211) - (21,211 1 Loss on disposal of property (45.101 ) (62 a86 7 1 (107.968) Non-operating income 1.126.105 278.624 1.404.729 See accompanying notes to financial statements. 38 1 II; I 1 I I 8 E I I il J I I I i I 1 I Total Enterp rise Service w Internal (Memorandu Income (loss) before operating transfers $ 1,121,304 (316,560) 804,744 Operating transfers in - 542,552 542,55 Operating transfers out - (542.552) (542.55 Net income (loss) 1,121,304 (316,560 1 804 , 74 Retained earnings at beginning of year, as adjusted (note 3) 25.950. 76 9 1.593. 174 27.543.94: Retained earnings at end of year 28.348.68' (note 14) $ 27.072.073 1.276.614 39 CITY OF CARLSBAD Combined Statement of Changes in Financial Position All Proprietary Fund Types For the year ended June 30, 1989 Totals Internal (Memorandu En t e rur i s e Service oolv) Sources of working capital: Operations: Net income (loss) $ 1,121,304 (316,560) 804,744 Items not requiring working capital: Depreciation and amortization 610,722 337,472 948,194 Loss on disposal of property, plant and equipment 45.101 62.867 107.968 Working capital provided by operations 19 777 9 127 83 9 779 19860 9 906 Increase in contributed capital 785,866 - 785,866 Contributions from other funds - iixLu2 635.24Q capital 2.562.993 719.019 3.282.012 Total sources of working Uses of working capital: Acquisitions of property, plant and equipment 1,336,387 914,269 2,250,656 Decrease in long-term revenue bonds payable 160,000 - 160,000 Increase in restricted assets 298 , 353 - 298,353 Contributions to other funds - 9.078- Total uses of working capital 1.794.74Q 923.347 2.718.087 working capital $ 768.252 (204.328) ,563.925, Net increase (decrease) in Elements of net increase (decreaee) in unrestricted working capital: Cash and investments 453,743 740,364 1,194,107 Accounts receivable 38,671 (7,576 1 31,095 Accrued interest receivable (31,574) (2,734) (34,308) Due from other funds 6 , 709 - 6 , 709 Accounts payable 321,288 (49,094) 272,194 Accrued wages payable 680 18,900 19,580 Due to other funds (6,709) - (6,709) Estimated claims payable - (904,188) (904,188) Current portion of revenue bonds Net increase (decrease) in Inventory (6,725) - (6,725) Deposits payable (4,830) - (4 ,830) payab 1 e (3.ooo) - (3.ooo) working capital $ 768.252 (204.325) 563.925 See accompanying notes to financial statements, 40 1 I I ! 1 s I I 1 I I I t I I I i 1 CITY OF CARLSBAD Notes to Combined Financial Statements June 30, 1989 (I) Summarv of Simifican t Accoun ting Policies The City of Carlsbad, California (the City) was incorporated July 1 1952. The City operates under a Council-Manager form of government a provides the following services as authorized by its charter: gener government, public safety, public works, culture, recreation, a community development. The City is not subject to federal or sta income taxes. The accounting policies of the City conform to generally accept accounting principles as applicable to governmental units. T following is a summary of the more significant policies: (a) Descriution and Scope o f the Reuortinz Entitv The Comprehensive Annual Financial Report includes all entities f which the City exercises oversight responsibility as defined by t National Council on Governmental Accounting (NCGA) Statement No. "Defining the Reporting Entity." This responsibility includes, b is not limited to, the authority to govern, manage, appro budgets, and assume fiscal accountability. The financial statements of the City include the financial activiti of the City of Carlsbad, the Housing Authority of the City Carlsbad, the Parking and Building Authorities of the City the Carlsbad Redevelopment Agency. Their financial operations s closely related and the City Council has a continuing oversig responsibility over the entities. The oversight responsibility determined on the basis of budget adoption, taxing authorit funding and appointment of the governing board. Carlsbad, the City of Carlsbad Public Improvement Corporation a The City also has an interest in a joint sewage treatment facili known as the Encina Water Pollution Control Facility. Since t City does not have significant influence over the management or t operation of the facility, it has not been included as a compone unit in the City's financial statements. (b) Basis of Pres en ta t ion The accounts of the City are organized OR the basis of funds account groups, each of which is considered to be a separa accounting entity. The operations of each fund or account grc 8 ( Con t inue 41 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (1) Summa rv of Sinificant Accoun tinz Policies. Con tinued (b) Basis of Presen tation. Co n t inued are accounted for by providing a separate set of self-balancin accounts that comprise its assets, liabilities, fund balance retained earnings, revenues, and expenditures or expenses. Th various funds and account groups are summarized by type in th financial statements. Fund types and account groups used by the City are as follows: GOVERNMENTAL FUND TYPES: Governmental Funds are used to account for the City's expendab1 financial resources and related liabilities (except those accounte for in proprietary and similar trust funds). The measurement focu is upon determination of changes in financial position. Th following are the City's governmental fund types: General Fund The general fund is the general operating fund of the City. It i, used to account for all financial resources except those requirec to be accounted for in another fund. SDecial Revenue Funds Special revenue funds are used to account for revenues derived fron specific sources (other than major capital projects) that arf restricted by law or administrative regulation to expendituree for specified purposes. Debt Service FmA Debt service funds are used to account for the accumulation of resources for, and payment of, general long-term debt principal, interest and related costs. CaDital Pro iects Funds Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. (Continued ) 42 I I 1 1 0 s I 1 I I 11 IC SI I 1 1 D I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued t inud (1) Sma rv of Swan t ACCQW tine Policies. Con (b) Basis of Presentation. Continued .. PROP-Y FUND TYPES: Proprietary funds are used to account for activities that are simil upon determination of net income and capital maintenance. T following are the City's proprietary fund types: Entera _rise Funds Enterprise funds are used to account for operations (a) that a financed primarily through user charges, or (b) where t governing body has decided that determination of net income appropriate. to those found in the private sector, The measurement focus Jnternal Serv ice Funds Internal Service funds are used to account for goods or servic provided by one department to other departments of the City on cost-reimbursement basis. -: Fiduciary funds are used to account for assets held by the City in trustee capacity or as an agent for individuals, priva organizations, other governmental units, and/or other funds. T following is the City's fiduciary fund type: Agencv Fun& Agency funds are used to account for assets held by the City in agency capacity for individuals and private businesses. They not involve measurement of results of operations. 1 (Continue 43 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (1) Swmna rv of Sienificant Accoun ting Policies. Co n t hued (b) Basis of P resen tation. Continued ACCOUN T GROUPS: Account groups are used to establish accounting control ar accountability for the City's general fixed assets and generz long-term debt. The following are the City's account groups: General Fixed Assets Accoun t GrouD This account group is used to account for all fixed assets of th City other than those accounted for in the proprietary funds. General Lono-Term Debt Accoun t Grow This account group is used to account for all long-term obligation of the City except those accounted for in the proprietary fund and trust funds. (c ) Measuremen t Focus and Basis for Accoun ting Governmental fund types are accounted for on a "spending" measuremen focus. Accordingly, only current assets and current liabilitie are included on their balance sheets, and the reported fund balanc provides an indication of available, spendable resources Operating statements for governmental fund types report increase (revenues ) and decreases (expenditures ) in available spendabl resources. The proprietary fund types are accounted for on an "incom determination" or "cost of services" measurement focus Accordingly, all assets and liabilities are included on the balanct sheet, and the reported fund equity provides an indication of the economic net worth of the fund. Operating statements fol proprietary fund types report increases (revenues) and decrease# (expenses) in total economic net worth. Fiduciary fund types are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. (Continued) 44 I I I 1 8 I. I # 1 I 1 I t I 1 I 1 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued I (1) Summa rv of Sianificant Accoun ting Policies. Co n t inued (c ) Measurement Focus a nd Basis for Accoun ting. Co ntinued Government and fiduciary fund types use the modified accrual basis o accounting. Revenues are recognized when susceptible to accrual i.e., both measurable and available. Available means collectibl within the current period or soon enough thereafter to be used t pay liabilities of the current period. In applying the susceptibl to accrual concept to intergovernmental revenues, the legal an contractual requirements of the individual programs are used a I guidance. Revenues that are accrued include real property taxes, sales ta interest, and state and federal grants. Real property taxes are levied on October 15 against owners of recor and February 1, and become delinquent after December 10 * an April 10, respectively. Under the provisions of NCC interpretation 3, property tax revenue is recognized in the fisca year for which the taxes have been levied, provided it is collecte within 60 days of the end of the fiscal year. at March 1. The taxes are due in two installments, on November Governmental and fiduciary fund expenditures are recognized when tk liability is incurred except for principal and interest c long-tern debt. Debt service expenditures are recognized when due unless debt service fund resouces have been provided during tt current year for payment of principal and interest due early in tk following year, in which case the expenditure and related liabilit is recognized in the current year. Proprietary funds use the accrual basis of accounting, i.e., revenuc are recognized in the period earned and expenses are recognized . the period incurred n (dl Encumb ranees Encumbrance accounting, under which purchase orders, contracts ai other commitments for the expenditure of monies are recorded order to reserve that portion of the applicable appropriation, employed as an extension of formal budgetary control in ti governmental funds. Encumbrances outstanding at year-end do nc constitute expenditures or liabilities, but are reported 8 reservations of fund balance for subsequent-year expenditures. (Con t inuec 45 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (1) summa rv of Siiznificant Accoun tina Policies. Co n t inued (e) Cash and Investmentg Cash includes amounts in demand and time deposits. Investments arc stated at cost or amortized cost, except for deferred compensatioi plan assets which are shown in an agency fund at market value. The City maintains a cash and investment pool. Interest incomc earned as a result of pooling is allocated to the appropriate fundi based on average monthly cash balances. (f) Inventories Inventories consist of materials and supplies that are valued at thc lower of average cost or market and are recorded as expenses whei ' consumed. (8) ComDensated Absences Vacation pay is payable to employees at the time used or upor termination of employment. For governmental funds, the cost oi accumulated vacation expected to be paid in the next 12 months iz recorded as a fund liability and amounts expected to be paid aftei 12 months (if any) are recorded in the general long-term debt account group. For proprietary funds, the cost of vacation is recorded as a liability when earned. (h) Self-Insurance The City has been self-insured for general liability claims since 1981 and for workers' compensation claims since 1978. General liability exposure is accounted for in the General Liability Self-Insurance Internal Service Fund. The Fund is responsible for collecting interfund premiums from other City funds and departments and paying claim settlements. Interfund premiums are based on the expenses are accrued in the General Liability Self-Insurance Internal Service Fund for estimated reported claims. insured funds' claims experience. Claim settlement and loss (Con t hued ) 46 1- I I E 1 I 5 I 1 I 4 *I 1 4 I I I I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued n t inued (1) Summa rv of Significan t Accountinn Policies. Co .. (h) Self-Insurance. Con tinued The activities of the workers ' compensation program are accounted f [ in the Workers' Compensation Internal Service Fund. The City risk management department and a service company administer tl benefits. Funding is provided through premium charges to tl I City's departments. Past experience indicates that incurred but not reported claims fc general liability do not represent a material amount anc therefore, they have not been accrued at year-end. (i> Unbilled Services Unbilled water revenue of the enterprise fund is recognized as earnc when the water is consumed. (j) General Fixed Assets General fhed assets are recorded as expenditures in the government; fund types and capitalized at cost in this group of accounts. ' the case of gifts or contributions, such assets are recorded : general fixed assets at fair market value at the time received. Fixed assets consisting of certain improvements other than building including roads, bridges, curbs and gutters, streets and sidewalki and drainage systems, have not been capitalized. Such asse' normally are immovable and of value only to the City. Thereforc the purpose of stewardship for capital expenditures is satisfic without recording these assets. In the general f ked assets account group, construction-in-process . transferred to buildings or improvements upon approval by the Cii Council which approximates the completion date. No depreciation has been provided on general fixed assets. (Con t inuec 47 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued .. (1) Sunrmarv o f Sigslif ican t Accounting Policies. Continued (k) Property. Plant and EauiD ment - Proprietarv Funds Property, plant and equipment used by proprietary funds is stated a cost or historical cost. Contributed fixed assets are recorded a fair market value at the time received. Depreciation is charged t operations using a straight-line method based on the estimate useful life of the related asset. The estimated useful lives o the assets are as follows: Years 10 - 50 hO - 70 Buildings and improvements Wells, reservoirs and dams 10 - EO0 Transmission and distribution lines Sewer, sewer lines and wells 50 Sewage treatment facility 55 Equipment 4 - 20 Filters, pumps and fire hydrants 10 - 50 (1) Deferred Revenue The deferred revenue in the General Fund represents cash received fo a traffic signal that has not been constructed and for the propert, taxes due but not available. The deferred revenue in the Special Revenue Funds and the Capita Projects Funds represents property taxes due but not available. The deferred revenue in the Debt Service Funds relates to ( prepayment of lease revenue from the General Fund to the Buildin; Authority and to special assessments collected in advance. The deferred revenue in the Enterprise Funds relates to deposits o in-kind prepayments for services to be rendered (e.g., sewe installation, etc.). (m) Reclassifications A special revenue fund has been reclassified as a capital project: fund due to the nature of the activity in the fund. This resultec in a decrease in the beginning fund balance of the Special Revenui Funds of $598,428 with a corresponding increase in the beginnin! fund balance of the Capital Projects Funds. ( Con t hued : 48 1 8 1 I 1 II I 1 1 1 4 u I 1 I I I 8 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (1) Summa rv of Sianificant Accoun tina Policies. Co n t inued (n) Total Columns Total columns on the combined statements are captioned "Memorandw Only" to indicate that they are presented only to facilitati financial analysis. Data in these columns do not present financia. position, results of operations, or changes in financial positioi data is not comparable to a consolidation since interfunc eliminations have not been made. in conformity with generally accepted accounting principles. Sucl (2) Byagetarv Data The City follows these procedures in establishing its budgetary data: 1. During May or June, the City Manager submits to' the City Counci a proposed operating budget for the fiscal year comencing th following July 1. The budget includes proposed expenditures an estimated revenues on a departmental basis. 2. Public hearings are conducted at City Council meetings to obtai citizens comments during June. 3. Prior to July 1, the budget is enacted legally through passage o I an appropriation resolution. The City Manager is authorized to make transfers of appropriated amount within a fund and function for up to $15,000. Revisions that alter th total appropriations of any fund or function must be approved by th City Council. A mid-year budget review is conducted each year. An major changes to the adopted budget are approved by the City Council a that time. During the year, several supplementary appropriations wer necessary. Budgets for governmental type funds are adopted on the modified accrue basis, except that encumbrances are treated as budgeted expenditures i the year purchases are committed. Expenditures may not exceed budgetc appropriations at the departmental level. Unencumbered appropriatior lapse at year end. (Con t inuec 49 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (2) uetarv Data. co n t inued For purposes of budgetary presentation, actual generally accepte accounting principal (GMP) expenditures have been adjusted to incluc encumbrances outstanding at year-end. Annual budgets are not adopte for the capital projects funds, therefore, budget basis financie statements have not been prepared because a comparison of SUC budgetary amounts to annual revenues and expenditures is nc meaningful. In addition, budgets are not adopted for the followir debt service funds: Parking Authority, Building Authority, Hosp Grol COP'S, College Boulevard and Redevelopment Bonds. Accordingly, tt revenues and expenditures for these funds have been excluded from tf budget basis financial statements. The following schedule is a reconciliation of the budgetary and GMP fur balances : Special Debt Service General Revenue Elmi Funds Funds Fund balance-budgetary basis $ 12,881,198 2,371,025 110,014 Encumbrances outstanding at year-end 535,407 56,353 - Fund balances of nonbudgeted funds - - 4,632.7 49 Fund balance-GMP bas is $ 13,416,605 2,427,378 4,742,763 (3) Prior Per iod Adjustment In prior years, the City did not depreciate its portion of the Encin Sewage Treatment Facility, a fixed asset of the Sewer Fund, whic resulted in an overstatement of its net property, plant and equipmen of $1,514,871, the amount of the estimated depreciation through Jun 30, 1988. This overstatement was corrected during the current year b an adjustment to decrease the net property, plant and equipment and th retained earnings of the Sewer Fund as of the beginning of the year fo the amount of the depreciation. (Continued 50 1 I 1 I 1 I T 1 1 I P I 4 i I I 8 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (3) Prior Period Adjustment. Continued In addition, the City's investment in this fixed asset had be understated in prior years by $519,396. This understatement w equipment and the retained earnings of the Sewer Fund at the beginni of the year. (4) Cas h and Investments corrected in the current year by increasing the net property, plant a. I The City maintains a cash and investment pool that is available for u by all funds. Each fund type's portion of this pool is displayed the combined balance sheet as "Cash and Investments." In additio investments are held separately by several of the City's funds. Authoritv for Deposits and Inves tmen tg : The City's investment policy and state statutes authorize the City invest in obligations of the U.S. Treasury, its agencies ai instrumentalities, commercial paper rated A-1 by Standard and Poor Corporation or P-1 by Moody's Commercial Paper record, banker acceptances with a maximum maturity of 270 days, repurchase ai and state licensed or chartered banks or federal or state savings ai loan associations, money market and mutual funds whose portfolil consist of one or more of the foregoing investments, and the Sta Treasurer's investment pool. reverse repurchase agreements , certificates of deposit with nation, State statutes require that all deposits be insured or collateralize1 Depositories holding public funds on deposit are required to rnainta collateral in the form of a pool of securities with the agent of tl depository having a market value of at least 10 to 50 percent excess of the total amount of all public funds on deposit. A summary of cash and investments is as follows: Cash on deposit $ 31,657,726 Investments 49,194,440 80,852,166 Less restricted portion 4.396.93 4 Unrestricted cash and investments $ 16.455.232 I (Con t inuec 51 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (4) Cas h and Investments. Con t inued Deposits: The following summary presents the amount of the City's depositr which are fully insured or collateralized with securities held by thc City or its agent in the City's name (Category One), those depositr which are collateralized with securities held by the pled& financial institution's trust department or agent in the City's nam (Category Two), and those deposits which are not collateralized 01 are collateralized with securities held by the pledging financia. institution or its trust department or agent but not in the City't name (Category Three) at June 30, 1989. Category Category Category Total Bank Carrying !&!2 lpro Three Ibdaa!x 4m& Cash $ 1,300,000 20,101,809 5,671 , 830 27,073 , 639 25,664,847 Cash with fiscal agents - 5.99 2.879 - 5.99 2.872 5.992.879 $ 1,300.000 26.09 4.688 5.671.830 33.066.518- Investments: The City categorizes investments according to the level of rid assumed by the City. Category One includes investments that arc insured, registered or held by the City's agent in the City's name, Category Two includes uninsured and unregistered investments held bj the counter-party's trust department or agent in the City's name4 Category Three includes uninsured and unregistered investments helc by the counterparty, its trust department or its agent, but not ir the City's name. Certain investments have not been categorizec because securities are not used as evidence of the investment. These uncategorized investments include ownership interests in mutual funds and similar instruments. The summary below identifies the level of risk assumed by the City and the total carrying amount and market value of the City's investments. (Con t hued ) 52 a I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued 1 1 I I E u I I 1 I I I I B a 1 I (4) Cas h and Inves tme nts. Con tinued Inves : bents. Contmued 1 Category Category Category Total Market One h Three yncateao rized I nvestments ws Local agency investment fund $- - - 12,032,000 12,032,000 12,032,O U.S. Government agency ob1 igations - 14,515,699 - - 14,515,699 14,156,7 U.S. Treasury securities - 4,340,346 - - 4,340,346 4,182.8 Corporate notes - 8,597,689 - - 8,597,689 8,627,: Bankers' acceptances - 5,412,957 - - 5,412,957 5,294, ! Comnercial paper - 994,160 - - 994,160 985, t Mutual funds and other - - - 3.301.582 3.301.589 3.301.t Total $ & 33.a=o.a5 1- - 15.333.589 49.194.444 48.580.; At June 30, 1989, one of the City's securities was held by a brokera the Securities Investor Protection Corporation. The cost of t security was $500,165. As the recovery of this amount is uncertain, I allowance has been provided for the full amount. During June 1988, the City instituted a new policy to provide for t safekeeping of all securities by a third party custodian to prevent similar occurrence in the future. The City has a $1,000,000 line of credit to be used for overdra liabilities. During the year ended June 30, 1989, this line of cred was not used. firm which is being liquidated In bankruptcy court at the request (Continue 53 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (5) Prooer tv. Plan t and Eauiomen t A summary of changes in the general fixed assets account group is i follows : Balance Balance July 1, June 30, 1488 Addi t ions De f e t ions lpse 19 , 56 7,46f Buildings 17,742,957 5,052,814 - 22,795,773 481,787 - I, 659,17( 0 ther improvements 1,177,389 Furniture and e quipmen t 4,254,760 563,586 1,063,479 3 9 754,86 ; Construction in progress _1.599.966 2.368. 425 P .581.13 4 2.387.05i Total $ 41.642.337 11.166.619 2.644.611 58.164.33f Land $ 16,867,465 2,700,000 - ( Con t hued 54 I I 1 I 8 1 i I II I I I 8 B 8 8 1 CITY OF CARLSBAD Notes to Combined Financial Statements 9 Continued (5) Property, Plant and EauiDment. Continued Construction in progress in the general fixed assets account group composed of the following: Expended to date at Project June 30, Authorization 1989 Committc Senior Citizens Redevelopment Center $ 3,800,000 2 , 206 y 948 1 y 593,05 Parking Facilities 550,000 27,468 522,5: Village Sign Project 982 803 li Fire Station #1 and #E' Remodel 225,000 19,568 205,4: Fire Station 86 and Apparatus 294 , 825 46,791 248,O: South Carlsbad Library 2,682 y 000 8,304 2,673,6! Alta Mira Park 1,000 , 000 15 , 993 984 ,O( Southwest Quad Community Park Design 190,000 109 189,85 Holiday Park Improvements 100,045 3,117 96,9: Carillo Ranch Stabilization 90,000 18 , 772 71,2: Buena Vista Playground 15 , 000 6,128 8,8; Advance Planning - High School Courts Park Design 20,480 12,896 7,5E Resurface and Lighting 125.566 20.160 105.41 $ 9.093. 898 2.387 a057 6 s 706.8' There is no future financing required on any of the above no II construction in progress. I (Continu 55 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (5) Property. Plant and Eauioment, Continued A summary of proprietary fund type property, plant and equipment a June 30, 1989 follows: Internal Enterprise Service Funds Funds Land, water rights, rights-of-way $ 459,206 - Buildings and improvements 75,136 - Wells, reservoirs and dams 1,212,852 - Transmission and distribution lines 4,023,869 - Sewer, sewer lines and wells 8 , 244,810 - Sewage treatment facility 19,199,083 - Equipment and. vehicles ' 635,294 2,827,771 Construction in progress 403.431, - 34,253,681 2,827,771 Less accumulated depreciation 6.296.317 L.lSl.46Q Property, plant and equipment, net $ 27.957.36 4 J.646.3u (6) Joint Ven ture - Encina Water Pollution Control Facilitp The Encina Water Pollution Control Facility (the Facility) is a sewel system owned jointly by the Cities of Carlsbad and Vista, the Leucadir County Water District, the Buena Vista Sanitary District, the San Marcos County Water District and the Encinitas Sanitary District, The Leucadia County Water District is the operator and administrator oi the facility and is responsible for the management, maintenance anc operations of the joint system. Ownership percentages are detenninec by joint agreement at the time the assets are acquired. As of June 30, 1989, the Cities and Districts have the following approximate ownershiz interest: City of Carlsbad 25% City of Vista 30 Leucadia County Water District 17 San Marcos County Water District 18 Encinitas Sanitary District 5 Buena Vista Sanitary District 5 (Con t hued ) 56 I 1 8 B 1 8 8 I 1 1 8 I I I I 1 I I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued n t hued (6) Joint Venture - Encina Water Pollution Control Facilitv. Co The latest available financial statements of the Facility, dated June C 1988 show the following: Total assets $ 73,773,985 Total liabilities 1,662,956 Fund balance 72.111.029 Net change in fund balance $ 391,474 The Facility does not recognize net income or loss. Net operatj expenditures in excess of users' assessments are treated as accour receivable on the Facility's books and charged to users' accounts the following year. Conversely, users' assessments in excess of r operating expenditures are treated as a liability and credited agair users' accounts, also in the following year. Under this basis, T operating expenditures for the Facility totaled $3,654,318 in fisc year 1988. The net change in fund balance was attributed to plz additions. The City accounts for its portion of the Facility as a fixed asset of t Sewer Fund, an enterprise fund of the City. In March 1989, the City Council approved the Encina Financing Jo: Powers Authority Agreement (EFJPA). The EFJPA was formed to facilitz financing of the expansion of the facility. The EFJPA includes 1 Cities of Carlsbad and Vista, Leucadia County Water District and But R Vista Sanitary District. In June 1989, the City and the EFJPA entered into an installmt purchase agreement for the City to acquire capacity in the Encina Sev Plant expansion. In August 1989, the EFJPA issued Wastewater Revenue Bonds 1989 Series in the amount of $33,500,000. The City is under no obligation for 1 repayment of these bonds other than to make timely payments under 1 installment purchase agreement. (Continu 57 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (7) Retirement Plaq The City contributes to the California Public Employees Retirement Systa that acts as a common investment and administrative agent fo participating public entities within the state of California. For th year ended June 30, 1989, the City's payroll for employees covered b the PERS was $8,585,376 for miscellaneous employees and $5,162,353 fo safety employees. (FERS), an agent multiple-employer public employee retirement systa Total payroll for the same period was $15,720,749. All full-time employees are eligible to participate as members of thl PERS. Benefits vest after an employee has been a member of the plar with 5 years of credited service. Annual retirement benefits arf determined based on age at retirement, the length of membership service and the amount of earnings based on the highest thirty-six consecutivc months average for safety employees, and based on the highest twelve consecutive months average for miscellaneous employees. The PERS alsc provides death and disability benefits. These benefit provisions anc all other requirements are established by state statute. for five years. Employees are eligible to retire after the age of 5( Employees are required to make contributions ranging from 7 to 9 percent of gross pay. The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial basis recommended by the PERS actuaries and actuarial consultants anc adopted by the PERS Board of Administration. The amount shown below as the "pension benefit obligation" is s standardized disclosure measure of the present value of pensior benefits, adjusted for the effects of projected salary increases ana step-rate benefits, estfnated to be payable in the future as a result of employee service to date. The measure is intended to help user6 assess the funding status of the PERS on a going-concern basis, asses6 progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent of the funding method used to determine contributions to the PERS. (Continued ) 58 1 1 I s I 1 I 1 1 I I I I I 1 I I I I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (7) Retirement Plan. C on t hued The pension benefit obligation was computed as part of an actuari valuation performed as of June 30, 1988. Significant actuari assumptions used in the valuation include (a) a rate of return on t compounded annually, (b) projected salary increases of 5 percent a YE compounded annually, attributable to inflation, (c) additior projected salary increases of 2 percent a year, attributable seniority/merit, and (d) no post-retirement benefit increases. investment of present and future assets of 8.5 percent a YE The total unfunded pension benefit obligation applicable to the City employees was $1,864,067 at June 30, 1988 (the date of the late actuarial valuation), as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 13,419,96 Accumulated employee contributions including allocated investment earnings 7,642,95 Employer financed-vested 8,447,66 Employer f inanced-nonves ted 738.86 Total pension benefit obligation 30,249,44 Current employees: Net assets available for benefits at cost (market value is $32,103,863) 28.385.37 Unfunded pension benefit obligation $ 1.864.06 None of the total change in the pension benefit obligation from the pri year resulted from changes in benefit provisions or in actuari< assumptions. PERS uses the Entry Age Normal Actuarial Cost Method which is a project benefit cost method. That is, it takes into account those benefi that are expected to be earned in the future as well as those alrea (Continue 59 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (7) Retirement Plan. Con tinued accrued. According to this cost method, the normal cost for s employee is the level amount which would fund the projected benefit j it were paid annually from date of employment until retirement. PEE uses a modification of the Entry Age Cost Method in which t€ employer's total normal cost is expressed as a level percentage c payroll, PERS also uses the level percentage of payroll method t amortize any unfunded actuarial liabilities. The amortization peric of the unfunded actuarial liability ends on June 30, 2000. The significant actuarial assumptions used to compute the actuarial1 determined contribution requirement are the same as those used t compute the pension benefit obligation, as previously described. The actuarially determined employer and employee contributions applicabl to the City at June 30, 1989 were as follows: Miscellaneous Safety Fmplovees Emp 1 oyee s Contributions Pavroll Contributions Pavrol Covered Cover el Required normal cost Amortization of the . unfunded (overfunded) actuarial accrued contribution $ 1,331,809 15.5% 1,207,887 23.41 liability (730.787 1 f&S 1 218.005 4,2% contributions $601.022 a% 1.425.892 ux Total required Actual employer contributions $ 728,041 8.5% 961,281 18.62 Actual employee contributions 6O1.022 7.0% 464.611 2La contributions $ 1.329.062 us 1.425 ,89 2 2.u3 Total actual (Con t inued 60 I I 8 I 1 8 8 I I I I 1 I i I I 21 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (7) Retirement Plan. Continued The City has a surplus related to miscellaneous employees as a result prior year actuarial gains. In order to maintain a level pattern contributions, the City has chosen not to apply it to fully offs I current year's contributions. Trend information gives an indication of the progress made accumulating sufficient assets to pay benefits when due. Systemwi ten year information is not yet available, however the available tre information may be found on page 157 of the City's Comprehensive Annu Financial Report. Three year trend information follows. The pens! benefit obligation was not calculated by PERS for the 1986 plan ye: therefore, some of the percentages noted below were not available (I for disclosure: 2338 leaz rn Net assets available for benefits as a percentage of pension benefit ob 1 i ga t ion 93.83 91.2% Nl percentage of annual covered payroll 14.2% 19.0% Nl Unfunded pension benefit obligation as a Actuarially determined employer contributions as a percentage of annual covered payroll 13.9% 16.2% 18. (8) Deferred Compensation Plan The City offers its employees a deferred compensation plan created accordance with Internal Revenue Code Section 457. The plan, availal to all City employees, permits them to defer a portion of their sal until future years. Amounts deferred may not exceed the lesser $7,500 or 25% of a participants' "includable compensation," as defi in the participation agreement. The deferred compensation is unforeseeable emergency. e available to employees until termination, retirement, death, 1 (Con t inu 61 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (8) Deferred Co muensation Plan. Con tinued All amounts of compensation deferred under the plan, all property an rights purchased with those ameunix, and all income attributable t those amounts, property, or rights are (until paid or made available t the employee or other beneficiary) solely the property and rights o the City (without being restricted to the provisions of benefits unde the plan), subject only to the claims of the City's general creditors Participant's rights under the plan are equal to those of genera creditors of the City in an amount equal to the fair market value o the deferred account of each participant. The City believes it has no liability for losses under the plan but doer have the duty of due care that would be required of an ordinary pruden investor. The City believes that it is highly unlikely that it wil use the assets to satisfy the claims of general creditors in the future (9) Ob1 ipations Under Can - ita1 Lw In 1981, the City entered into an agreement with the City of Oceanside tc lease the public parking area surrounding a regional shopping area Under the termg of the agreement, the City agreed to pay an aggregatc amount of $700,040 including interest at 10%. The annual principal ana interest payments are $70,000 through 1991 and $1 annually for each of the remaining forty years. The City has the option to purchase the leasehold at any time for the sum of $1. The leasehold interest of $430,152 has been recorded in the City's general fixed asset account group. In August 1987, the City entered a sale and leaseback agreement with a financial institution for the Community Development Building. Principal and interest payments totaling $234,529 are to be paid each year through 1997. The City's leasehold interest of $1,602,160 has been recorded in the City's general fixed asset account group. (Continued ) 62 1 R I 4 1 I I 1 I I I I 1 I Thereafter 518.280 I i I 1 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (9) Ob1 izations - U nder Cap _ita1 Leases. Con t inued The following is a summary by year of future minimum lease payments undc capital leases (paid from the General Fund) and the present value 4 minimum lease payments at June 30, 1989: Annual Minimum Lease Pame nts Year ending June 30, 1990 $ 304,529 304,529 1991 1992 234,530 1993 234,530 1994 234,530 Thereafter 820.884 Total minimum lease payments 2,133,532 Less amounts representing interest 578,777 Present value of minimum lease payments $ 1.554.752 (LO) Obliaations Under ODeratina Leases In June 1988, the City's Redevelopment Agency entered into an agreemer to Lease a parking lot from a private party. The lease requirc monthly rental payments of $3,085 for twenty years. Total annual rex expense is $37,020. The following is a schedule by year of future minimum rental paymenl required under the operating lease at June 30, 1989: 1 Year ending June 30, Rental Ekuenses Annual 1990 $ 37,020 1991 37,020 1992 37,020 1993 37,020 1994 37,020 Total minimum lease payments $ .-, (Con t inuec 63 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (11) Long-term Debt The fallowing is a summary of changes in long-term debt for the yet ended June 30, 1989: Principal Principal Balance Balance July 1, June 30, hpsB Retirements leae General long-term debt account group: . Bonds and notes payable $ 23,455,000 290,000 23,165,000 Special assessment debt with governmental commitment 9,550,000 245,000 9,305,000 Obligations under capital leases -lAzzLM r67.353 1.554.755 34,727,108 702,353 34,024,755 Enterprise funds: Waterworks revenue bonds 482. OOQ 157.ooo 325.ooo $ 35.209.108 iizL.as 34.349.755 (Continued) 64 II I I I I I I I I I 1 1 I II I I I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (11) n Long-term debt at June 30, 1989 is comprised of the following individr issues: Balance June 30. 1 I General Long - Tern Debt: 1962 Series B General Obligation Sewer Bonds, principal due in amounts ranging from $90,000 to $100,000 on July 1 of each year through 1991, interest payable on January 1 and July 1 at 3.6% per annum $ 280,O 1962 Series C General Obligation Sewer Bonds, principal due in amounts of $25,000 on July 1 of each year through 1991, interest payable on January 1 and July 1 at 3.75% per annum 75 ,O 1966 Library General Obligation Bonds, principal due in amounts ranging from $20,000 to $25,000 on January 1 of each year through 1992, interest payable on January 1 and July 1 at 4.5% per annum 65.01 General obligation bonds 420.01 1967 Carlsbad Building Authority Revenue Bonds, principal due in amounts ranging from $25,000 to $35,000 on December 15 of each year through 1992, interest payable on December 15 and June 15 at 6.0% per annum 120,01 1969 Carlsbad Parking Authority Revenue Bonds, principal due in amounts ranging from $75,000 to $125,000 on October 1 of each year through 1995, interest payable on October 1 and April 1 at rates 8 varying from 6.35% to 6.4% per annum 725 ,O( (Con t inue 65 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (11) Long-term Debt. Continued Balance June 30. I! 1981 Carlsbad Parking Authority Revenue Bonds, principal due in amounts ranging from $60,000 to $150,000 on February 1 of each year through 2001, interest payable on August 1 and February 1 at 8.0% per annum I. 210 .OQ Parking and building authorities revenue bonds 2.055 .OQ 1988 Carlsbad Certificates of Participation, principal due in amounts ranging from $115,000 to $815,000 on August 1 of each year through 2009, interest payable on August 1 and February 1 at rates varying from 5.50% to 7.6% per annum 8,690,OO 1988 Carlsbad Housing and Redevelopment Commission Tax Allocation Bonds, principal due in amounts ranging from $255,000 to $595,000 on April 1 of each year through 2003, a principal payment of $2,890,000 on April 1, 2007, and a principal payment of $3,950,000 on April 1, 2011, interest payable on October 1 and April 1 at rates varying from 5.5% to 7.8% per annum 17.000.00( Total Bonds and Notes Payable 23,165 ,OO( 1986 College Boulevard Assessment District Bonds, principal due in amounts ranging from $260,000 to $910,000 on September 2 of each year through 2006, interest payable on September 2 and March 2 at rates varying from 6.75% to 8.0% per annum 9,305 ,OOC Capital leases (note 9) 1.554.751 $ 34.024.752 Total General Long-term Debt (Continued ) 66 I I 1 1 I U I 1 I I I I 1 1 1 1 I t I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (11) Long-term Debt. Continued Balance June 30. l! Enterwise Fund Long-Term Debt : 1960 Waterworks Revenue Bonds, principal due in amounts ranging from $60,000 to $65,000 on July 1 January 1 and July 1 of each year at rates varying from 3.875% to 4.0% per annum of each year through 1990, interest payable on $ 125,001 1970 Waterworks Revenue Bonds, principal due in the amount of $100,000 on July 1 of each year through 1990, interest payable on January 1 and July 1 of each year at the rate of 6.0% per annum 200.00( 325,001 Less unamortized discount (1,231 Less current portion (16o.00( Total enterprise fund long-term debt $L63.76( Reserve funds of approximately $3,000,000 are required to be held in deb service funds to secure the payment of principal and interest on the outstanding debt issues. The Tax Allocation Bonds maturing April 1, 2007 and 2011 are subject to mandatory redemption in part from sinking fund payments which commence on April 1, 2004. the debt service requirements which follow. These sinking fund payments have been included in (Continue 67 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (11) Lona-term Debt. Con tinued Debt service requirements to maturity for general long-term debt are as follows : Parking and Bui 1 ding General Authorities Certificates Tax Assessment Ob1 i gati on Revenue of Allocation District rn Bonds Participation Bonds Bnn4r w 1990 $ 148,728 307,231 759,567 877,352 974,455 3,067,333 1991 143,652 340,200 870,085 1,132,352 975,880 3,462,169 1992 153,393 326,000 871,435 1,133,328 975,430 3,459,586 1993 - 31 6,650 866 p 448 1,137,938 973,180 3,294,216 1994 - 293,200 865 9 054 1,135,828 973,815 3,267,897 1995-1999 - 1,064,000 4,314,266 5,740,522 4,840,713 15,959,501 2800-2004 - 309,000 4,281,360 5,818,676 4,795,672 15,204,708 2005-2009 - - 4,251,200 5,893,370 2,849,600 12,994,170 Thereafter - - - 2.382.330 - 2.382.330 445,773 2,956,281 17,079,415 25,251,696 17,358,745 63,091,910 Less amounts representing interest 25.773 901.281 8.389. 415 13.251.696 8,053. 745 30.621.916 Total general 1 ong-term debt $420,000 2.055.000- 12.000.OOQ 2uQuUQ 32- 470. OOQ Debt service requirements to maturity for the enterprise funds are a follows: Waterworks Revenue Bonds 1990 $ 172,718 1991 169.259 341,977 Less amounts representing interest 16.977 Total enterprise fund debt $325.ooo_ (Con t hued 1 68 I 0 I I I 1 II 4 I 1' I 8 I I I I I 1 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (11) Long-term Debt. Continued The College Boulevard Assessment District Bonds were issued under t provisions of the Improvement Bond Act of 1915. The bonds were issu to finance public infrastructure improvements project on Colle Boulevard. If a delinquency occurs in the payment of the assessme installments, the City, at the end of the fiscal year of delinquenc has a duty to transfer to the debt service fund the amount of t delinquency out of available funds of the City. Available fun consist of any surplus funds of the City not required for lawf municipal obligations. This duty of the City is continuing during t period of delinquency, until reinstatement, redemption or sale of t delinquent property. Even though neither the faith and credit nor t taxing power of the City is pledged to the payment of the bonds, t City is obligated in the manner stated above. Accordingly these bon have been recorded in the general long-term debt account group of t City. (12) Advances To and From Other Funds The following table shows amounts advanced from funds in the City other funds within the City at June 30, 1989:- Advances to: Pub 1 ic Facilities Fund Construction Redevelopment Fund Total Advances from: General Fund $- 2,044,787 2,044,71 Capital Construction Fund 950.000 3.80 7.352 4.75 7.3i Total $22!!ua 2.139 6,802.1 9 a85 I (Cont inu 69 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (13) Due To and From Other Funds The following table shows amounts due from funds in the City to othc funds within the City at June 30, 1989: Due To: Enterv -rise Water Utility Sewer General Fund nwli w Due from: Capital Projects Funds: Federal Grant $ 664,000 - - Block Grant 68,138 - - Community Development Enterprise Funds : Water Utility - - 96,306 Sewer Fund - 10.017 - Total $732.138 10.017 96,306 (Con t hued ) 70 1 I I I 1 1 I I I 1 I I I I 1 I I I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued , (14) Fund Balances/Re tained EarningZi The following is a summary of reserved and unreserved fund balances ai retained earnings as of June 30, 1989: Governme ntal Fund Tvues Special Debt Capital Fund Balm General Revenue Service Reserved for: - - 184,839 - Loans receivable $ Prepaid expenses 36,000 113,858 - - Inventory 35,428 - - - Debt service - - 4,742,763 3,306,47; Advances to other Subsequent funds 2,044,787 - - 4,757,35: expend; tures 131,000 733,587 - - Encumbrances 535. 40 7 56,353 - 6,827,891 2.782.622 1.088.637 4.742.763 14.891.72; Unreserved : Designated for approved capital projects 4,844,529 - - 14,805,26: Undesignated 5.789. 454 1.338.7 41 - (1.003.59: Lo.633.983 1.338.7 41 - 13.801.66; Total fund balances $ 13.416.605 2.427.378 4.742.763 28.693.39 1 ProDxietarv Fund TvDes In t erna: EnterDrise Service $ 175,259 - Reserved for debt service Unreserved - undesignated 26.896.81 4 1.276.6L i Total retained earnings $ 27.072.071 1.276.611 Reserves for loans receivable, prepaid expenses, inventory, subsequei expenditures and advances to other funds are established to show thi certain assets are already committed to other purposes and are nc available for discretionary expenditures. 1 (Continue1 71 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (14) Fund Balances/Re tained Earnings. Co n t inued Reserves for encumbrances represent commitments related to unperformc contracts for services and undelivered goods. Reserves for debt service represent resources legally restricted to ti payment of general long-term debt principal and interest maturing i future years. Unreserved-undesignated represents the fund balance or retained earning remaining after reduction for reserved and designated fund balances a retained earnings. As of June 30, 1989, the funds with a deficit in fund balance/retaine earnings were : EL!a Deficit Capital projects: Federal Grants $ 873,905 Redevelopment Project 4,056,180 Internal service : General Liability Self-Insurance 28,914 The City expects that the deficit in Federal Grants will be fundec through future grant monies or transfers from the General Fund and thc Redevelopment Project deficit will be funded by property tax incrementr to be received in the future. The deficit in the General Liability Self-Insurance Fund will bc eliminated through increased premiums charged to other funds. Also, the following funds had an excess of expenditures (on a budgetar: basis) over appropriations: Special revenue: Senior Nutrition !b 9L Debt service : Library Bonds 1,462 Sewer Bsnds 6,447 (Continued ) 72 I I I I I I I I I I I I I I I I I CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (15) Changes in Contributed Cau ita1 Internal Enterprise Service Funds Funds Contributed capital, July I, 1988 $ 15,466,067 2,216,839 Additions: Cash 785,866 - Fixed assets - 626.162 Contributed capital, June 30, 1989 h 16.251.932 2.843 .OOl (16) &pe nt Informa tion for Enterurise Funds The City maintains two enterprise funds that provide water and sewe services. Segment information for the year ended June 30, 1989, is a follows: Water Total &€Id Jzuxld Funds Utility Sewer Enterprise Operating revenues $ 1,407,030 2,138 ,465 3,545,495 Operating expenses: Depreciation and amortization 121,732 488,990 610,722 Other 1.07 4.09Q 1.865. 484 2.939.5 7 4 Operating income (loss) 211,208 (216,009) (4,801 Non-operating income, net 331.861 794.244 1.126.105 Net income $ 543.062 578. 231 1.121.304 Capital contributions: Beginning balance $ 2,425,080 13,040,987 15,466,067 Current year additions - 785.8& 785.866 I Ending balance $ 2.425.080 13.826 .852 16.251.933 I (Continued , 73 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (16) Seme nt Information for EnterDrise Funds. Con tinued Water To tal Utility Sewer Enterprise Fund l?imd Funds Property, plant and equipment (at cost): Addit ions $ 24,613 1,311,774 1,336,387 109.005 Deletions 771 108.234 Net working capital $ 736.164 12.422.786 13.158.950 Bonds : Payable from operating revenues 163 9 766 - 163,766 Payable from other sources 161.23 4 161.234 $ 325.000 - 325 .OOO Total assets $ 10,154,811 37,190,175 47,344 , 986 Total liabilities 1,725.088- 4.020.98Q Total equity $ 8.429.723 34.894.283 43.324.006 - (17) Assess ment Distr ict Bond Issues As of June 30, 1989, the City' had three series of Assessment Distric Bonds outstanding in the amount of $5,544,904. These bonds were issue under the provisions of the Improvement Bond Act of 1911 and 1915 an were used to finance public infrastructure improvement projects. For the bond issuances noted above, the City is not obligated in an manner for the payment of debt service in the event of default by th property owners but is only acting as agent for the property owners i collecting the assessments, forwarding the collections to bondholders and initiating foreclosure proceedings, if appropriate. Accordingly no liability for these bond issuances has been recorded in the Genera Long-Term Debt Account Group and all debt service transactions hav been recorded in an Agency fund. (Cont inued 74 I I I Y I 1 I I I I 1 I 1 I I I I I CITY OF CUSBAD Notes to Combined Financial Statements, Continued (18) Continaencies (a) Single Family Mortgage Revenue Bonds have been issued to provid funds to purchase mortgage loans secured by first trust deeds o newly-constructed and existing single-family residences. Th purpose of this program is to provide low interest rate hm mortgage loans to persons of low or moderate income who are unabl to qualify for conventional mortgages at market rates Multi-Family €lousing Revenue Bonds are issued to provid construction and permanent financing to developers of multi-famil residential rental projects located in the City to be partial1 occupied by persons of low or moderate income. I The balance of the revenue bonds outstanding under this program as a June 30, 1989 is $51,751,941. The bonds, together with interest, thereon, are limited obligations a the City payable solely from bond proceeds, revenues and othe amounts derived solely from home mortgage and -developer loan secured by first deed of trust, irrevocable letters of credit, an irrevocable surety bonds. In the opinion of City officials, thes bonds are not payable from any revenues or assets of the City, an neither the full faith and credit nor the taxing power of the Cij of Carlsbad, the state of California, nor any politic: sub-division thereof, is obligated to the payment of the principi or interest on the bonds. Accordingly, no liability has bel recorded in the General Long-Term Debt Account Group b (b) The City is a defendant in certain legal actions arising in tl normal course of operations. In the opinion of management a legal counsel, any liability resulting from these actions will nc result in a material adverse effect on the City's financii position. (19 ) Subseque nt Event In July 1989, the San Diego County Board of Supervisors approved tl establishment of the Carlsbad Municipal Water District (formerly knoi as the Costa Real Municipal Water District) as a subsidiary of the Ci of Carlsbad. The Local Agency Formation Commission approved the chan of organization in June 1989. The effective date of the merger is January 1, 1990. Until then, t City and the Carlsbad Municipal Water District (Water Distric continue to function as separate entities for reporting purpose Therefore. the financial transactions of the Water District are n included in the financial statements of the City for the year end June 30, 1988. 75 .- - .. - . .- ___ .- . .. - ~ .... ~___ L 452 _.------ -. - - -- ... . --- <*-‘ . ’-7 ” I ~~~~~t~l~~~~~~ ‘ ’ ’~~~~ ‘\ 1 I “ ~~~J~~~~~~~~~~~~~l~~ \ \\\I ~~~~~~% H/ 111 ‘ ~~~1~~~l~~~~~~~~~I~~~~~la”l I” l,~~l~~~l~,~, ‘1 \I,, I. I $fJ’/;!;.y ” 1 y I ‘ ~~~(~~~~~~~~~,~‘i\ 1 \\\,I i ,~~//\l~/~~l~~,/,~/, i,l I/, I,, , q\\\///,/J/ #,‘) $I,h 1 (W I1 //,,I, /h, C, I 11 I ’Wt\ I\ UI 1 hl. I I$ I ‘I \\\\/I!?\ ‘1 ’h I, ,‘I \ 1 I 1 Is I I 1 I 1. 1 I I I 4 1 I d t 1 GENERAL FUND To account for all financial transactions not accounted for in other fund The majority of current operating expenditures of the City other than proper funds are financed through revenues received by the General Fund. a 77 CITY OF CARLSBAD General Fund Schedule of Revenues - Budget and Actual (Budgetary Bas is ) For the year ended June 30, 1989 Actual on Variance Budgetary Favorab 1 e Budaet Basis (Unfavorable) Taxes : Property taxes $ 9,866,000 10,037,336 171 9 336 Property tax reimbursements 235,000 276,873 41,873 Sales and use taxes 8,000,000 8,186,215 186,215 Transient lodging taxes 2,870,000 2 , 752,025 (11 7,975 ) Franchise taxes 650,000 599,445 (50,555) Real property transfer taxes 350,000 570,244 220,244 Cigarette taxes 176,000 166,216 (9,784) Trailer coach in-lieu tax 20 s 000 26 s 608 6,608 Total taxes 22.167.00Q 22.614.962 447.962 Licenses and permits: Vehicle licenses (in-lieu) 1,900,000 2,032,65 7 132,657 Construction permits 500,000 674,814 174,814 Business licenses 650,000 696,706 46,706 License tax on new construction 1,000,000’ 1,111,849 111,819 Other 160,000 38.853 -LUL.&Z) Total licenses and permits 4.210.000 4.554.879 344.879 Charges for services: Engineering fees 1,045,000 1,609,561 564,561 Plan checking fees 700,000 1,212,287 512,287 Zoning and subdivision fees 100,000 132,120 32,120 Sales of maps and publications 56,402 54,642 (1,760) Library and parks and recreation fees 544 , 5 78 621,842 77,264 Police service fees 29,162 28,252 (910) Ambulance fees 200,000 219,030 19,030 Environmental impact studies 21,991 21,305 (686 1 Other 114.867 125.25 4 10.38.7 services 2.812.000 4.024.293 1.212,293 Total charges for Totals. carried forward 29.189.ooo 31.19 4.134 2,0_05.13r, 78 t I I 1 1 1 1 1 1 i 1 I 1 I 1 I R I Actual on Variance Budge tar y Favorable Budaet Basis ( Unf avo rab h Totals, brought forward $ 29.189.000 31*19 4.134 2.005. 134 Fines and forfeits: 393,000 477,172 84,172 Vehicle code fines Other - 1.658 1.658 Total fines and forfeits 393,ooo 478.83Q 85.830 Interest income 1.000.000 2.087. 490 1.087.490 Miscellaneous: Reimbursed expenditures 248 , 855 1,045,848 796 , 993 Sale of property 961 lr,039 3,078 28,195 118,514 90 3 319 Rents Other 427.989 1.618.079 1.19o.090 Total miscellaneous 706.000 2.786. 480 2.080.480 1 Total revenues $ 31.288-000 36.5 46.934 9.258.93 4 79 CITY OF CARLSBAD General Fund Schedule of Expenditures - Budget and Actual (Budgetary Bas is ) For the year ended June 30, 1989 Actual on Variance Budgetary Favorable iu&!% Bas is (Unfavorable General government : City council $ 141,802 124,474 17,328 City manager 454 , 531 421,848 32,683 City clerk 121,665 78,062 43,603 Research/analysis group 225 , 939 172,228 53,711 City attorney 278 , 660 266,167 12,493 Finance 938,317 880 , 830 57,487 City treasurer 43,817 43,752 65 Information systems 407,899 355,470 52,429 Purchasing 312,074 294,761 17,313 Insurance 207 , 164 166,829 40,335 Personnel 489,353 486 , 141 3 , 212 P lann ing 1 , 387,8 78 1 , 098,304 289,574 Senior citizens programs 203,997 172,199 31 , 798 Weed abatement 65,955 27,297 38,658 Capital improvement 126,865 92,339 34,526 Building maintenance 667,082 632,214 34 , 868 Lease 287,600 70,000 217,600 Development processing service 445,153 316,301 128,852 Community development 401,539 361,497 40 , 042 Contingency 255,013 - 255,013 Other 563.600 825.88 1 (262.281 ) Community promotion 202 , 000 200,089 1 , 911 Community assistance 57,500 57,500 - Total general government 8.285.403 7.144.183 1.141.22Q Public safety: Fire protection 4,634,694 4,522,167 112,527 Police protection 6,452,156 6,304,763 147 , 393 Building inspection 816,591 856,412 (39,821 1 Civil defense 126.916115.602 11.314 Total public safety 12.030.35 7 11.798.9 44 231.419 Totals, carried forward 20.3 15.96Q 18,943,127 1.372.632 80 I I I I 1 I 1 I I 1 I 1 1; 1 I I R I Actual on Variance Budgetary Favorable m Budnet Basis ( Unf avorab 1 f Totals, brought forward $ 20.315. 760 18.943.127 1.372.632 Public works: Engineering 2,606,351 2,708,245 (101,894) Streets 3,854,806 2,762,469 1,092,337 Ma in t enan c e 725.356 485.932 239.424 Total public works 7.186.513 5.956.6 46 I. 229.862 Culture and recreation: Parks and recreation 3,516,438 3,433,139 83,299 Library 1,968,806 1,960,102 8,704 Civic arts 188.5 25 178.677 9.848 Total culture and recreation 5.673.769 5.57 1.918 101.851 Total expenditures $ 33.176.042 30.471.691 2.704.351 81 SPECIAL REVENUE FUNDS Civic Arts Program To account for transfers from the Capital Construction Fund to support th civic arts program, Comunitv Develoment Block Grant To account for federal block grant for community development. Librarv Audio Visual I nsurance To account for revenues and expenditures on rental of audio-visual material. Low and Moderate Income Housing To account for money administered by the Carlsbad Redevelopment Agency fa designated low and moderate income housing. Mortgage Re venue Bonds To account for money available to the City for expenditures incurred due t Mortgage Revenue Bonds. Police Asset Forfeiture To account for money received by the City under a federal program distributin property confiscated from illegal activities. Section 8 Housina Authority To account for federal grants for low and moderate income housing supplements payments . Senior Nutrition To account for money received and expenditures for senior programs under th Older Americans Act. 82 1 I I R i 1 B I I ! I I n I II I I I State Grants To account for state of California grants including Library Literacy, CLSA a Department of Transportation grants. Street Lighting To account for revenues and expenditures from property tax assessments f 1 street lighting. 83 CITY OF CARLSBAD Special Revenue Funds Combining Balance Sheet June 30, 1989 Civic Arts Assets Proaram Cash and investments $ 126,194 Receivables : - Loan Taxes Accounts Accrued interest 1,300 e e - - Due from other governments Prepaid expenses Total assets $ 127.494 Liabilities and Fund Balance Liabilities : - Accounts payable Accrued wages payable Due to other governments Deferred revenue - - e - Total liabilities Fund balance: - Reserved for loan receivable Reserved for prepaid expenses Reserved for encumbrances 24,691 - Reserved for subsequent expenditures - Unreserved - undesignated 102.803 Total fund balance 127.494 Total liabilities and fund balance $ 127.494 84 1 I II 1 I 1 I 1 1 8 1 I 461.903 IQ6.845 - 43.394 I I I I I I Community Library Low and Development Audio Moderate Mort gag Block Visual Income Revenue Grant Insurance Bousina Bonds 461,903 107,238 686,617 42,952 37,113 - 147,726 - - - 76,691 - - - - - - 1,104 7,074 442 - - - - - - - - 499.016 108.342 918.108 43,394 - 530 - - - - - - - - - - - - 61s,706 - - I - 530 44.706 - 147,726 - 725,676 37,113 - - - - - - - - - - 96 7 499.016 107.812 873.402 43.394 499.016 108.342 918.108 43.394 85 (Continuec CITY OF CARLSBAD Special Revenue Funds Combining Balance Sheet, Continued June 30, 1989 Police Asset Assets Forfeiture Cash and investments $ 27,748 s Re ee ivab 1 es : Loan Taxes Accounts Accrued interest 28 6 - - - Due from other governments Prepaid expenses - Total assets $28.034 Liabilities a nd Fund Balance Liabilities: Accounts payable 1,465 Accrued wages payable Due to other governments Defsrred revenue - - - To tal 1 iab ili t ies 1.665 Fund balance : - Reserved for loan receivable Reserved for prepaid expenses Reserved for subsequent expenditures - Reserved for encumbrances 7,470 Unreserved - undesignated 19.09_9 Total fund balance 26.569 Total liabilities and fund balance $28.034 - 86 I I I I I 8 I 1 I I I I I I I I I Section 8 Street Housing Senior State Autho ri t v Nutrition Grants Liah t ing Total 17,243 6,648 342,714 297,096 2,116,353 184,839 - - - 8,507 85,198 17,483 454 - 638 18,575 16,813 - - 3,546 3,061 70,615 15,404 1,900 - 87,919 - - - 113.858 1 219.199 22.506 &!LUQ 309.302 2.623.555 - - - - w 4,025 11,917 9,963 23,227 51,127 27,411 9,731 1,035 6,069 10,576 72,933 - - - 72,933 - - - - 44.706 B 86.689 12.952 16.032 33.801 196.177 - - - - 184,839 113,858 - - - 113,858 7,911 - - - 733,587 10,741 983 3,971 7,530 56,353 - 8.571 328.157 267.969 1.338. 741 2.427.378 219.199 22.506 348.160 309.302 2.623.555 132,510 9.554 332.128 275.499 87 CITY OF CARLSBAD Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 1989 Civic Arts Proara Revenues : Taxes $- Intergovernmental - Charges for services - Interest income 10,181 - Miscellaneous 10,181 Total revenues Expenditures: General govemmen t - Public works - Welfare - Culture and recreation 83.72 Total expenditures 83.721 Excess Fund balance at beginning of year (deficiency) of revenues over expenditures (73,53i 201,031 Residual equity transfers - Fund balance at end of year $ 127,49[ 88 8 I I R I I 1 I I I I 1 I I 1 I I I Community Library Low and Development Audio Moderate Mortgage Block Visual Income Revenue Grant Insurance Housing Bonds - - 213 y 239 - 60 , 000 - 65,494 - - 23 , 379 7,501 42 , 350 80,435 - - - - - - - 83,329 72,995 255,584 w - - - - - - - - - - - - - 62.365 - - - .62.365 - - I 83,379 10 , 630 255,589 80,435 415,637 97 y 182 617,813 40,535 - (77.576) 499.016 107.812 873.40_2 43.394 - - 89 (Cont inuec CITY OF CARLSBAD Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance, Continued For the year ended June 30, 1989 Police Asset For f e i turf Revenues : Taxes $- - In t ergovernmen t a1 Charges for services Interest income 3,846 Miscellaneous 83.551 Total revenues 87.397 - Expendi tures : . General government 99,476 Public works - We 1 fare Culture and recreation - - Total expenditures 99.476 Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Residual equity transfers Fund balance at end of year (12,079. 38,648 - $ 26.562 90 I 1 8 1 I 51 1 1 I 1 I I I I 8 I I I I Section 3 Aut ho ri tv Nutrition Grants DLil Housing Senior State Street - - - 540,511 753,75( 1,468,781 95,020 212,187 - 1,835,98f - - - - 65 , 491 5,107 - 23,071 IL, 76L 210,63: - 49.980 - 35,635 169.16f 1.473.388 145.ooo 235.258 590.910 3 a035 -03: - - - - 99,47f - - - 534,607 584,60; 1,469,477 144,538 - - 1,614,011 - - 176,009 - 322.09: 1.469.477 144.538 176.009 584.607 2.620.19; 4,411 46 2 59 , 249 6,303 414,84: 128,099 9,092 271,251 26 9 , 196 2 , 088,481 - - 1.628 - (75.94t 132.514 LL5s 332.128 275.L99 2.L27.371 91 CITY OF CARLSBAD Special Revenue Funds Combining Schedule of Revenues and Expenditures Budget and Actual (Budgetary Basis) For the year ended June 30, 1989 Civic Arts Proaram Actual on Variance Budgetary Favorable Budaet Basis (Unfavorable) Revenues : - - - - - - Taxes $ Charges for senrices - Intergovernmental Interest income 10,000 10,184 184 Miscellaneous - - - - - Total revenues 10.000 10.184 184 Expenditures: General government - - - Public works - Welfare - Culture and recreation 151.264 108.412 42.852 - - - - Total expenditures 151.264 108.412 42.852 over expenditures $ (141.264) (98.228) 43.036 Excess (deficiency) of revenues 92 I 8 I R I I 1 - - 1 1 I - - - 61.101 63,332 769 1 auQQ 83,379 23.279 899 9.663 8.764 i I 8 1 8 I 1 Community Development Block Grant Actual on Variance Actual on Variance Budgetary Favorable Budgetary Favorab 1 e Library Audio Visual Insurance 1 Budaet Basis tunf a vorab le 1 Budaet Basis (Unfavorable - - - - - - - - 60,100 60 , 000 (100) - - - - 60,000 65,494 5,494 - 23,379 23,379 5,000 7,501 2,501 - - - - 60.100 83,379 23.279 65.ooo 72.995 7.995 - - - - - - - - - - - - - - - - - - - - - 64.101 63.332 769 93 (Continue CITY OF CARLSBAD Special Revenue Funds Combining Schedule of Revenues and Expenditures Budget and Actual, Continued (Budgetary Bas is ) For the year ended June 30, 1989 Low and Moderate Income Housine Actual on Variance Budgetary Favor ab 1 e Budaet Basis ( Un f avo rab 1 e ] Revenues : Taxes $ 200,000 213,239 13,239 In t e rgove men tal Charges for services - - - Interest income 40,000 42,350 2,350 Miscellaneous - - - - - - To tal revenues 240.000 255.589 15.589 Expenditures : General government - - - Public works - - - Welfare - - - Culture and recreation - - - Total expenditures - - - &cess (deficiency) of revenues . $ 240.004 255.589 15.589 over expenditures 94 1 1 1 8 8 i 1 1 I 1 8 i 1 8 8 8 I e Mortnaee Revenue Bonds Police Asset Forfeiture Actual on Variance Actual on Variance Budgetary Favorab 1 e Budgetary Favo rab 1 e Budaet Bas is (Unfavorable) Budaet Basis (Unf avorab 1 - - - - - - - - - - - - - - - - - - - 80,435 80,43.5 4,000 3,846 (154) - - 80.00083.551 3.551 - w 80.435 84.ooo87.397 3.397 8,478 - - - 115,424 106,946 - - - - - - - - - - - - - - - - - - - - - - 115.424 106.946 a .i7a 80,435 80.435 (31.424) 119.549) w - 95 ( Continue c a CITY OF CARLSBAD Special Revenue Funds Combining Schedule of Revenues and Expenditures Budget and Actual, Continued (Budgetary Bas is ) For the year ended June 30, 1989 Section 8 Housing Authoritv Actual on Variance Budgetary Favo rab 1 e Budtiret B_asis - Revenues : - - - Taxes $ Intergovernmental 1,600,000 1,468,781 (131 9 219 1 Charges for services - Interest income 3,000 5,107 2,107 Miscellaneous - - - - - To tal revenues 1.603.000 1,473.808 (129.112) Expenditures : - - General government - Public works - Welfare 1,651,882 1,480 , 218 171,664 Culture and recreation - - - - - Total expenditures 1.651.882 L .480,218 171.664 Excess (deficiency) of revenues over expenditures $ (48.882) (6.334) 42.552 96 I I I I I I I 1 1 I I 145.427 145.5 21, (94) 219,969 179.980 39.989 I 24,573 (521 1 (25,094) I 1 I I I I 1 State Grants Senior Nutrition Variance Actual on Variance Favor ab 1 e Budgetary Favorable Actual on Budgetary &x.& (Unfavorable w Basis (Unfavorable ) Budaet e - - - - - 120,000 95,020 (24 , 980 ) 175 , 000 212,187 37,187 - - - - - - 13,071 -.5LQQQ 49.980 (20) 170 .OOO 145.ooo (25.ooo) 185.ooo 235.258 50.258 - 23,071 - - - - 10,000 - - - - - - - - - - - - - - - - 145 , 427 145,521 (94) - - - 219.969 179.980 39.989 (34.962) 55.278 90.247 97 ( cant hue CITY OF CARLSBAD Special Revenue Funds Combining Schedule of Revenues and Expenditures (Budgetary Basis) Budget and Actual, Continued For the year ended June 30, 1989 Street Liaht inn Actual on Variance Budgetary Favo rab 1 e ll?&sl Bas is (Unfavorable 1 Revenues : Taxes $ 490,000 540,511 50,511 In t e rgovernmen tal - - - Charges for services 1 9 000 - (1,000) Interest income 8,000 14,764 6,764 Miscellaneous 24.ooo 35.635 11.635 Total revenues 523.ooo 590.9111 67.910 Expenditures: General government - - - Public works 684,325 592,137 - 92,188 WePf are Culture and recreation - - - - - - Total expenditures 684.325 592.137 92.188 over expenditures $ (161.325) (1.227) 160,098 Excess (deficiency) of revenues 98 1 I I I 8 I 8 154.004 169.166 15.166 I I I 8 1 I 8 I 1 1 To tal Actual on Variance Budgetary Favorable I Budaet Basis (Unf avorablel 690,000 753,750 63,750 1 , 955,100 1,835,988 (119,112) 61,000 65,494 4,494 80,000 210 , 637 130,637 2.940.100 3.035.035 94.935 115,424 106,946 * 8,478 684,325 592,137 92,188 1,797,309 1,625,739 171,570 435.33 4 351.724 83.610 I 3.03 2.392 2.6 76.546 355.846 (92.292) 358.689 450.781 99 -- - 1 I I I I 1 1 1 I 1 I I I I I I 1 DEBT SERVICE F[JNDs Library Bonds To accumulate property taxes specifically levied for payment of debt servic on the 1966 Library General Obligation Bonds. Sewer Bonds To accumulate property taxes specifically levied for payment of debt servic on the 1962 Series B and C Sewer General Obligation Bonds. I Parkinn Authority To account for receipts received by the Parking Authority from the Generi Fund for payment of debt service on 1969 and 1981 Parking Authority Reveni Bonds. Building Authority TO account for receipts received by the Building Authority from the Generi Fund for payment of debt service on the 1967 Building Authority Revenue Bonds I HOSD Grove COP'S To account for payment of debt service on the 1988 Certificates t Participation issued to purchase Hosp Grove. Colleae Boulevard To accumulate property assessments levied for payment of debt service on 19 College Avenue Assessment District Bonds. Redeve loment Bonds To account for payment of debt service on 1988 Tax Allocation Bonds issued finance improvements for the Carlsbad Redevelopment Agency. 101 CITY OF CARLSBAD Debt Service Funds Combining Balance Sheet June 30, 1989 Library Sewer Assets Boads Bonds Cash and investments $ 12,511 101,536 Receivables: Taxes 431 2,353 Accrued interest 113 979 Total assets $13,055 144.858 Liabilities and Fund Balance Liabilities: Interest payable $ 1,463 6,446 Deferred revenue e - Total liabilities 1,463 6,446 Fund balance - reserved for debt service. 11.592 98.422 Total liabilities and fund balance $13,055 104.868 102 1 I I I 1 I I I I 1 8 I I I 1 I 1 Parking Building Hosp Grove College Redevelopment Authori tv Authori tp c0p)s Boulevard Bbnds Total I 899,716 131,389 950 , 729 1,489 , 688 1,151,444 4,737,013 - - - - - 2,784 22.155 369 30,379 19.074 23.495 96.564 921.871 131.758 981.108 1.508.76 2 1.174.939 4.836.36 1 - - - - - 7 , 905 - 36,ooo - 49.689 - 85.685 - 36 , 000 - 49 , 689 - 93,59t 921.87 1 95.7r8 981.108 2.459.073 1-17 4.939 4.742.7c 1 921.871 131.75_8 22LLSB 1.508.76 2 1.17 4.939 4,836.361 103 CITY OF CARLSBAD Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 1989 Library Sewer Barrds Bands Revenues : Taxes $ 21,647 116,927 Interest income 594 2.629 To tal revenues 22.241 119,5_56 Expenditures: Current : Debt service : General government - - Principal retirement 15 9 000 115,000 Interest and fiscal charges 5,062 21.403 Total expenditures 20.062 136.403 Excess (deficiency) of revenues over expenditures 2,179 .(16.847 ; Operating transfers in - - Operating transfers out - Total other financing sources (uses) - - Other financing sources (uses ) : - Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 2,179 (16,847) Fund balance at beginning of year 9.413 115.26_5! Fund balance at end of year $ 11.592 98.422 104 I I I I I I I I 1 I 8 8 I I i 1 I 1 I Parking Building Hosp Grove College Redevelopment Authori tv Authority cop's Boulevard Bonds Total - - - 985,207 - 1 , 123 , 78 77.6 24 7.638 84.787 75.36 4 89.89 7 338.53 77.624 7.638 84.787 1.060.5 71 89.89 7 1.462.311 2,235 4,296 - - - 6,52' 135,000 25,000 - 245,000 - 535,001 2.254.40 150.344 7.950 461.409 730.886 877.353 287.579 37.244 461.409 975.886 877.353 2.795.93 I (209.955 1 (29.606) (376.6 22 1 84.685 (787.456 1 (1.333.62- - 36,000 327,562 - 814 , 153 1,177,71 - - - - (80. 244 ) (80.24 - 36.ooo 327.562 - 733.909 1.097. 47 (209,955 ) 6,394 (49,060 ) 84,685 (53,547 1 (236,15 1.131.826 89.364 1.030. 168 1.374.388 1.228.486 4.978.91 921,871 95.758 981.108 1.459.072 1.174.939 4.742.76 105 CITY OF CARLSBAD Debt Service Funds Combining Schedule of Revenues and Expenditures Budget and Actual (Budgetary Basis) For the year ended June 30, 1989 Library Bonds Actual on Variance Budgetary Favo rab 1 e Budaet Basis (Unfavorable 1 Revenues : Taxes $ 19,000 21 9 647 2,647 Interest income 100 594 49 Total revenues 19,100 22.2410 1.141 Expenditures: Debt service: Principal retirement 15 .OOO 15,000 - Interest and fiscal charges 3.600 5,062 (1.462) Total expenditures 18.600 20,062 (1.462) over expenditures $3 2.179 1.679 Excess (deficiency) of revenues 106 I 1 1 I I I I 8 I I I 1 I I I I I 1 I Sewer Bonds To tal Actual on Variance Actual on Variance Budgetary Favorable Budgetary Favorable Budget Bas is (Unfavorable) &&& Basia (Unfavorable 130,000 116,927 (13,073) 149,000 138,574 ( 10,426 ) 1.ooo 2.629 1.629 1.100 3.223 2.r23 JJJdQQQ 119.556 (11.444) 15o.100 141.797 c8.303) 115,000 115,000 - 130,000 130,000 - 14.956 aAQ3 (6.447) 18.556 26.465 (7.909) 129,956 136.403 (6.447) 148.556 156.465 (7.909) 1.044 (16.847) (17.891) 1.544 (14.668) (16.211) 107 CAPITAL PROJECTS ~mms Cauital Construction To account for transfers from the General Fund for various municipal capital projects. Public Facilities co nstruction To account for receipts of fees charged to developers for specific capital projects necessitated by growth. Park Dsvelomen t To account for receipts of fees charged to developers for park acquisition and development. Redeveloument Bond Proiect To account for capital projects financed by 1988 Carlsbad Redevelopment Agency Tax Anticipation Bonds. Assess ment Districts To account for capital projects financed by issuance of assessment district bonds. State Grants To account for capital projects financed by state grants. Revenue Sharing To account for revenue sharing grants from the federal government. Federal Grants To account for miscellaneous grants from the federal government, including Federal Aid Urban and Highway Bridge Repairs and Replacement. 108 I I I I I I u 1 1 1 I I I 1 I I 1 1 Marron Road Improvement To account for street improvement project financed by 1989 Certificates a Participation. Bridge and ThorouPhfare To account for receipt of fees charged to developers in the Bridge ar! I Thoroughfare district. Planned Local Drainage Facilities To account for receipts of fees charged to developers for drainage facilitie necessitated by growth. RedeveloDment Proiect To account for financial resources segregated for the rehabilitation c commercial and public property located with the Carlsbad Village area. Traffic Impact To account for receipts of fees charged to developers for street constructic and improvement. Communitv DeveloDment Block Grant To account for federal block grants for community development. Gas Tax To account for receipts and expenditures of money apportioned under Streel and Highways Code Section 2106, 2107 and 2107.5 of the state of California. 109 CITY OF CARLSBAD Capital Projects Funds Combining Balance Sheet June 30, 1989 Public Capital Facilities Park Assets Cons truc t ion Construction Develoument Cash and investments !$ 2,627,711 7,660,047 1 , 178,442 Re c e ivab 1 e s : Taxes - - - Accounts 302 236,838 - Accrued interest - 77,058 16,041 Due from other governments - - - Advances to other funds 4.757.352 - - Total assets $ 7.385.362 7.973.9 43 1.194.483 Liabilities and Fund Balance Liabilities: 110 , 193 Accounts payable 13,000 15,336 Accrued wages payable - - - Due to other funds - - - Advances from other funds - 950 , 000 - Deferred revenue - - - Total liabilities 13.000 -2mA236 110.193 Fund balance (deficit): Reserved for debt service - - - Reserved for advances to other funds 4,757,352 - - Reserved for encumbrances 198,480 1 , 122,893 23,571 Unreserved: Designated for approved capital projects 2,416,533 5,531,192 87,917 Undesignated - 354.522 972.802 Total fund balance (def kit) 7.372.365 7.008.60 7 1.084.79Q Total liabilities and f md balance $ 7.385.365 7.973.9 43 E. f 94.482 110 I I 1 I I I 1 I I I 1 1 1 505.b55 538,760 4991489 - (1,732t99( 1 I 1 I I Redeve lopmen t Bond Assessment State Revenue Federal Project Districts Grants Sharina Grants 7 , 341,629 2,749,392 586,751 348,867 4,85: - - - - - - - 48,623 - - 160,442 99,026 8,423 3,594 4; - - 152,050 - - - - - - - 7.502.071 2.848.418 795.847 352.461 4.90( 405,455 561,436 11,227 69 214,801 - - 664 , OO( - - - - - - - - - - - - - - - - - I 405,455 561.436 11.227 69 878.80: - - - - - - - - - - 3,041 , 732 878,620 135,896 142 , 240 864,081 149,235 210,152 - 3,549,429 869,602 7.096.6 16 2.286.98 2 284.620 352.392 (873.90, 7,502.071 2.848.418 795.847 352.461 4.90’ 111 CITY OF CARLSBAD Capital Projects Funds Combining Balance Sheet, Continued June 30, 1989 Planned Marron Local Road Bridge and Drainage Assets bprovemen t Thorouahfahlr: Fac i 1 i t ie Cash and investments $ 630,811 1,878,231 1,832,685 Receivables : Taxes - - - Accounts - - - Accrued interest - 19,351 18, a83 Due from other governments - - - Advances to other funds - - - Total assets ii 53o.aii i.897.5a2 1.851.568 Liabilities and Fund Balance Liabilities I Accounts payable 1,089 19 - Accrued wages payable - - - Due to other funds - - - Advances from other funds - - - Deferred revenue - - - Total liabilities 1.089 19 - Reserved for debt service - - - Reserved for advances to other funds - - - Reserved for encumbrances 4,229 283,848 Unreserved : \ Fund balance (deficit): - Designated for approved capital projects 593,547 735,948 143,328 Undes ignated 31.946 877.767 1.708.240 Total fund balance (deficit) 629.722 1.897,563- Total liabilities and fund balance $ 630.811 1.897.582 1.851.568 112 I 1 I 1 1 1 I 1 I I I i I u B I 1 Community Redeve lo pmen t Traffic Deve 1 opmen t Gas Proiu ImDac t Block Grant ax Total 1,674,299 1,977,444 - 1,243,124 31,734,286 306,767 - - - 306,767 70 3 - - - 286,466 29,640 20,373 - 12,808 465,686 226,003 - 4.757.352 2.011.409 1.997.817 zL222 1.255.93 2 37,776.564 - - - 73,953 - - - 19,770 - 802 8 1,353,209 16,855 - - - 16,855 5,852,139 - - - 6,802,139 178.825 - - - 178.825 - - 68,138 - 732,138 6.067.589 - 6_8.940 8 9.083.L66 3,306,477 - - - 3,306,477 - - - - 4,757,351 76,449 38,478 14,800 2,577 6 9 827 9 89E - 242,111 - 276,268 14,805,262 ( 1.003.5 9, E (4.056 180 1 1,997.817 5.013 1,255.9 24 28.693.39 4 I (7.439.106) 1.71 7.228 (9.787) 977.079 2.011.409 1.997.817 73.953 1.255.93 2 37.776.56C e 113 CITY OF CARLSBAD Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 1989 Public Cap i t a1 Facilities Park Cons t r uc t ion Construe tion Develsrrment, Revenues : - - - - - - Taxes $ Intergovernmental Charges for services - 2,190,968 71,139 Interest income 349,802 517,444 139,477 Contributions from property owners - Miscellaneous 1.146 133.145 - - - Total revenues 350.9 48 2.841.557 210 1616 Expenditures: Current : Capital outlay 985,530 6,333,806 1 , 979,675 Debt service : - - General government - - - - Interest and fiscal charges Total expenditures 985.530 6_.333.806 E. 9 79.6 75 (634.582) (3.492.2491 (1.769.059 1 Excess (deficiency) of revenues Other financing sources (uses): over expenditures Operating trasfers in 692,260 - - Operating transfers out - - (34 294) Total other financing - - sources (uses) 65L.966 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 23,384 (3,492,249) (1,769,059) Fund balance (deficit) at Fund balance (deficit) at beginning of year 7.348.981 lQaxLa5 2,853.3 49 end of year $ 7.372.361 7.008.60 7 1.084.290 114 I 1 I R I 1 1 t 787.997 4.911.294 902.670 29.693 4.79 I I I 12,349,358 ) I .341.967 374.614 (195.104) (8L5.001 m (557 -567) - E (557.567) 25.294 9,ooo D d I 1 I 1 Redeve 1 opmen t Bond Assessment State Revenue Federal Project Districts Grants Sharing Grant E - - - - - - - 790,878 - 4 , 48: 787,997 381,584 57,991 29,693 31( - 4,529,710 - - - - - 53.801 - - - - - - - - - - 22,875 - 3,569,327 528,056 224,797 819,801 3,106,725 - - - - 7.755 3.13 7.355. 3.569.327 528.056 224.797 819.801 - 25,294 9,000 - - - - - - - (2,906,925) 1,367,261 383,614 (195,104) (815,OO 10 A03.5 41 919.721 4o1.006 547.496 (58.89 7.096.616 2.286.98 2 J84.62Q 352.392 (uL% 115 CITY OF CARLSBAD Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance, Continued For the year ended June 30, 1989 Planned Marron Local Road Bridge and Drainage Imorovemen t Thoroughfare Facilitie Revenues : - - Taxes $- Intergovernmental - - - Charges for services - 395 , 743 50,975 In teres t income 51 9 321 126,373 128,415 Contributions from property owners - - - Miscellaneous - - - To tal revenues 51.3321 522.1 14 179.390 Expenditures : Current: Capital outlay 52,224 170,387 163,627 Debt service : General government e - - Interest and fiscal charges - - - Total expenditures 52.224 170.387 163.627 (903) 351.7 29 15.763 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in - - - Operating transfers out (19.375) sources (uses ) 119.375) - - Total other financing - - Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (20,278) 351 , 729 15 , 763 Fund balance (deficit) at Fund balance at end of year $ 629.722 1.89 7.563 1.851.568 beginning of year 650.000 1.545.834 p.835.805 116 1 I I I I 1 I 1 I 1 1 I I I I I 1 1 Cornunity Redevelopment Traffic Development Gas Project ImDac t Block Grant ZaX Total 852,952 - - 794 , 528 1 , 647,480 - - 245 , 185 - 1 , 040,543 233,533 139,636 128 64,507 3,008,213 - - - - 4,529,710 - 383,445 - - 3,092,27(3 14.429 - - - 202.521 1.100.914 523.081 245.323 859.035 13.520.741 - - 39 9550 - 62,425 1,305,512 144,964 200,750 201,539 19,706,724 535.69 - - 543.447 2 1.841.204 144,964 24o.300 201.539 20.392.5 96 ( 740,290) 378.117 5.013 657. 496 (6.871.854 - n 278,017 - - - 1,004,571 (454.359) - - - (1.065.59: (176.3 (61,0211 - - 42) - 378,117 5,013 657,496 (6 , 932987f (916,632) ( 3.139.548 1 1,619,700 - 598. 4 28 35.626.27: 1.255.924 28.6 93.39 1 (4.056.180) 1.999.817 5.013 117 Flowers proved to be a more successful crop than the eucalyptus trees. Gladioli have been grown in Carlsbad since 1921 o Ranunculus bulbs were imported from Turkey. The first field of the bright, beautiful flowers was planted at Tamarack and Jefferson Streets in 1926. Birds of Paradise were first planted in the fifties. The orange and blue flowers resemble exotic birds in flight. Flowers became such an important symbol for Carlsbad that the city logo has a "bird." I 1 I I I I 1 R I 1 I a 1 I I I I I t JWTERPRISE FUND Water Utilitv To account for the operation and maintenance of the City's water system ai the payment of debt service on the 1958, 1960 and 1970 Waterworks revenr bonds. Sewer To account for the operation and maintenance of the City's sewer system. 119 CITY OF CARLSBAD Enterprise Funds Combining Balance Sheet June 30, 1989 Water Assetg Utilitv Sewer Total Cash and investments $ 408,344 12,410,316 12,818,660 Receivables : 1 , 726,090 Due from other funds 10,017 96,306 106,323 1 , 922 Accounts 1,724,168 Accrued interest 2,470 127,863 130,333 Inventory, at cost 152.487 11.491 163.980 Total current assets m 4 12,647.900 14,945.386 Restricted assets: Cash and investments 4,396,934 - 4,396,934 Accrued interest 45,302 - 45,302 Total restricted assets 4.442.236 - 4.442.235 Property, plant and equipment: Land and water rights 231 , 956 227,250 459 , 206 Buildings and improvements 37,188 37,948 75,136 1,212,852 Transmission and distribution lines 4,023,869 - 4,023,869 Sewers, sewer lines and wells - 8,244,810 8,244,810 Sewage treatment facility - 19,199,083 19,199,083 Equipment and vehicles 228 9 174 407,120 635,294 Construction in progress - 403.431 403.431 5,734,039 28,519,642 34,253,681 depreciation (2.3 18.95Q 1 (3.977.367)(6.296.317 Wells, reservoirs and dams 1,212,852 - Less accumulated Property, plant and equipment, net 3.415.089 24.542.275 27.957.364 Total assets $ 10.154.811 37.190. 173 47.344.986 120 1 1 8 R 1 1 8 1 I E I I I I I 8 I Water Liabilities Utili tv Sewer Total Current liabilities: Accounts payable $ 1,216,216 198,735 1,414,951 Accrued wages payable 22,849 16,362 39,211 - 65,951 Deposits payable 65,951 Current portion of revenue I bonds payable 160.00Q - 160.00( To tal current liabilities 1,561,322 225,114 1,786,43€ 10,017 106,323 Due to other funds 96,306 Long-term liabilities: Revenue bonds payab 1 e 163,766 - 163,76t - 2.070.7 78 2.070.77t Deferred revenue Total liabilities 1.725.088 2.295.892 4*020*98C Fund Eau itv Contributed capital 2.425.080 13.8 26.852 16.251.93: Retained earnings: Reserved for debt service 175,259 - 175,255 I Total retained earnings 6 .OO 4,641 21 -067 * 434 27.072.0 7: Total fund equity 8.429.721 34.894.283 43.324. OOf Total liabilities and fund Unreserved - undesignated 5,829,384 2JtAPU3- equity $ 10.154.811 37.190.175 47.344.981 121 CITY OF CARLSBAD Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings For the year ended June 30, 1989 Water Utilitv Sewer Total Operating revenues: Metered water sales $ 1,114,737 - 1,114,737 Sewer services charges - 2,096,997 2,096,997 Other charges for services 260,454 15,517 275,971 Mis ce 1 laneous 31,839 25 a 95 1 57,790 Total operating revenues 1.407.03Q 2.138. 46 5 3.545.495 Operating expenses: 530,948 1,223,627 Personnel services 692,679 Off ice expenses 205,538 55,695 261,233 Repairs and maintenance 154,415 154,275 308,690 Professional services 10,303 1,111,834 1,122,137 Insurance 7,330 12,732 20,062 Purchased water 3,825 - 3,825 Depreciation and amortization 121.732 488.99Q 610.722 Total operating expenses 1.195.8 22 2.354.474 3.550.296 Operating income (loss) 211.208 (216.0091 (4.801; Non-operating revenue (expenses): Interest income 353,072 839,345 1,192,417 Interest expense and fiscal agent fees (21,211) - (21,211 1 Loss on sale of property - (45.101 1 (45.101, 1 , Non-operating income 331.861 794.244 1.126.105 Net income 543.069 578.235 I. 121.304 Retained earnings at beginning of year 5,461,574 21,484,670 26,946,244 Prior period adjustment - (995. 475 1 (995.475) as adjusted 5.461.57 4 20.489.195 25.950.769 Retained earnings at beginning of year, Retained earnings at end of year $ $.OO 4.643 21.06 7.434 27.072.071 122 1 1 1 I I I I 1 I 1 I 1 8 I 1 I I 1 I CITY OF CARLSBAD Enterprise Funds Combining Statement of Changes in Financial Position For the year ended June 30, 1989 Water Total Utilitv Sewer Sources of working capital: Operations: $ 543,069 578,235 1,121,30 Depreciation and amortization 121 , 732 488,990 610,72 Loss on disposal of property, Working capital provided by Net income Items not requiring working capital: plant and equipment - 45.101 45.u operations 664,801 1,112,326 1,777,12 Increase in contributed capital - 785.866 785.86 Total sources of working capital 664.801 1.898. 192 2.562.92 Uses of working capital: Acquisitions of property, plant Current partion and repayment and equipment 24,613 1,311,774 1,336,38 of revenue bonds payable 160,000 - 160,OO Total uses of working capital 482.966 1.311.77 4 1.794.74 Net increase in working capital $ 181.835 586. 418 768.25 Increase in restricted assets 298.353 - 298.35 Elements of net increase (decrease) in unrestricted working capital: Cash and investments (484,873) 938,616 453,74 Accounts receivable 196,629 (157 , 958 1 38,67 Accrued interest receivable (13 , 238) (18,336) (31,57 Due from other funds (1 , 25 7 1 7,966 6,70 321 , 28 Accounts payable 499 , 188 (177,900) Accrued wages payable 5,378 (4 , 6 98 1 68 Due to other funds (7,966 1 1,257 (6 , 70 Deposits payable (4,830) - (4,83 Current portion of revenue bonds Inventory (4,196) (2,529) (6972 payable A..LDX!) - (3.00 Net increase in working capital $ ,181.835 586. 41Q 768.25 123 1 1 I I I INTERNAL SERVICE l?UNDS Workers' Comoensa tion To account for charges to other funds to insure against Workers' Compensatia claims 0 General Liabilitv Self-Inswmce To account for charges to other funds to insure against liability clain against the City. I Central Gar= I replacement. To account for charges to other funds to provide fleet maintenance an Health Insurance To account for charges to other funds and from employees to provide healt 8 I 1 3 t 1 1 1 I 1 1 1 insurance for full-time City employees e Data Process inq To account for charges to other funds for data processing services. 125 CITY OF CARLSBAZ) Internal Service Funds Combining Balance Sheet June 30, 1989 Workers ' Assets ComDensatiQ Current assets : Cash and investments $ 1,331,838 Re c e ivab 1 e s : accounts e Accrued interest 13.78Q Total current assets 1.345.618 Property, plant and equipment: Machinery and equipment - Less accumulated depreciation e Net property and equipment - Total assets 1.345-618 Liabilities and Fund Eauitv Current liabilities : Accounts payable - Accrued wages payable - Estimated claims payable 671.231 Total current liabilities 671.233 Contributed capital - Contributed 500,000 from other funds Retained earnings (deficit) - unreserved 174.385 Total fund equity 674.305 Total liabilities and fund equity $ 1.345.618 126 1 Y I I I Insurance !liazWs Insurance ID IB I I I 1 General Liability Data PracesE;ligg Total Self- Central Health 2,747,851 250 , 649 605,665 204,885 5,140,88( - 7,486 1,111 6 76 9,27: 28.311 3.610 6.240 2.110 54,051 2,776,162 261,741 6_13.056 207.6 71 5.204.21; - 2,533,467 - 294 , 304 2,827,771 (69,310) (1.181.46( - (1.112.15Q) - I - 1.421.317 - 224,994 1.646 q 31 1 2,776 .I62 1.683. 062 mdui ‘432.663 6.850.52; 48 , 664 56 , 101 24,792 17 , 700 147,25 - 3,840 - 2,166 6,OO 1.906. 41 2 - - - 2.577.6 4 1,955. 076 59.9 41 24.792 19.866 2.730.901 76 , 784 2,843,OO I 850 , 000 1,416 , 217 - 1 (28.914) 206.90 4 588.224 336,015 1.276.6L 4,119.61, 821.086 1.623,121 588.224 412.799 2.776.16 2 1.683 ,O 62 613.016 432,665 6,850,52 I I I lli n 127 CITY OF CARLSBAD Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Retained Earnings For the year ended June 30, 1989 Workers ' ComDensat io1 Operating revenue: Charges for services $ 156,367 Miscellaneous 38.466 Total operating revenue 194.833 Operating expenses: - Personnel services Office expense - Repairs and maintenance Professional services - Depreciation - Fue 1 Supplies and parts - Claims expense 467.673 Total operating expenses 467.673 Operating income (loss) (272.840) - - Non-operating revenues : Interest income 118,779 Loss on disposal of property - Total non-operating income 118.779 Net income (loss) before operating transfers Operating transfers in - (15h ,061 ) Operating transfers out (500.000) Net income (loss) (654,061) Retained earnings (deficit) at beginning of year 828.446 Retained earnings at end of year $194.385 128 I I 8 I I I i 651.293 1.447.26Q 1.450.927 467.536 4.211.8 45 1 1 I 1 B 1 1 1 ( 28,914) 206.904 224 336.015 1 I 1 General Liability Self - Central Health Data Insurance Garage Insurance Process ing Total 645,937 1,410,601 1,214,009 451,725 3,878,635 5.356 36.659 236.918 15.811 333.21( - 250,798 - 136,407 387,20' - 331,228 - 199 , 713 530,941 - 106,911 - 67,156 174,06; - 16,225 - 9,658 25,88: - 220,399 - - 220,395 - - 138,32f - 138,326 - 310,827 - 26 , 645 337,47: 1.317.118 - 1.207.9 49 - 2.992.7 4( 1.317.118 1.374.714 1.207.949 439.579 4.807.03: I (665t825) i3.J.B 242,978 ALm JaLUi! 157,252 20,421 31,851 13,188 341,49' - (47.323) - (15.544) (62.86, 157.25 2 (26.902) m (2.356) 778.62d (508,573) 45,644 274,829 25,601 (316,56( 500,000 - - 42,552 542,55: - (42 -552) - - (542.55: (8,573) 3,092 274,829 68,153 (316,561 (20.3 41 1 203.812 313.395 267.862 1.593 17d 588. 1.276.61( 129 CITY OF CARLSBAD Internal Service Funds Combining Statement of Changes in Financial Position For the year ended June 30, 1989 Workers ' Comuensatjg Sources of working capital: Operations: Net income (loss) $ (654,061) Items not requiring working capital: Depreciation - Loss on disposal of property, plant and equipment - Working capital provided (used) by operations (654,061 ) Contributions from other funds - Total sources (uses) of working capital (654.061) Uses of working capital: Acquisitions of property, plant and equipment - Contributions to other funds - - Total uses Net increase (decrease) in working capital $ (654.061) Elements of net increase (decrease) in working capital : Cash and investments (395,518) Accounts receivable Accrued interest receivable (7,659 1 Accounts payable 3 28 Accrued wages payable - - Estimated claims payable (251.212) capital $ (654.0611 Net increase (decrease) in working 130 1 I I I 1 1 I I I (8,573) 996.482 274.892 110.342 719.01! 1 - I 1 1 i (652.976) - - - (904.181 I I I I 1 General Liability Insurance Garane Insurance Process ing To tal Self Central Health Data (8,573) 3,092 274 , 829 68 , 153 (316,56( - 310,827 - 26,645 337,47< 15.544 62.86 - 47.323 - (8,573) 361 , 242 274,829 110 , 342 83 , 77' - 635.24( - 635.240 - - 899,188 - 15,081 914,26' - - 9.078 9,07 24.159 923,34 (8.573) -2&% 274.829 l!ufu ( 204 32 - 899.188 - 657,676 94,561 290 , 133 93,512 740 , 36 2,361 (476 1 2 , 323 71 7 (2,731 - 7,641 (15,893) 6 76 (7,57 (15,634) (23,160 1 (1 , 734) (8,894) (49,09 - 18,728 - 172 18,901 (8.573) 97.294 274.829 86.183 (204.32 131 Buena Vista Lagoon is the home of migratory birds. Snowy white egrets, great blue herons, ducks, geese, and many other birds feed there. \- -- -\_ /’- 132 1 I I AGENCY mTNDs Deferred Co mDensa - tion To account for amount employees have deposited in deferred compensation plan offered by the City. I Contractor's DeDosits I development . To account for money deposited by contractors for designated futur Miscellaneous DeDositS To account for money deposited with the City for various items. 1 I I 8 I I 1 I 1 1 II 1 1 1 Assessment District TO account for the debt service transactions on assessment district bonds $< which the City is not obligated in some manner to assume payments in the ever of default by the property owners. 133 CITY OF CARLSBAD Agency Funds Combining Statement of Changes in Assets and Liabilities For the year ended June 30, 1989 Balance Balance July 1, June 30 1p88 Additions Deduct ions leae Deferred Co moensatioq: Assets: Cash and investments $ 1.257.972 460.222 - 1.718.19i Liabilities: Deferred compensation payable $ 1,257.972 460.222 - 1.718.191 Contractors' DeDositS: Assets ! Liabilities: - Cash and investments $ 1,277,372 382.867 (85.68Q) 1,574,552 Deposits payable $ 1.277.372 383.6 26 (86.432) 1.574.552 Miscellaneous DeDos its : Assets: Cash and investments $ 2,813,725 11,995,890 (io, 173,774) 4,635,841 2.15 Accrued interest 41.515 (2.154) 1.5U Total assets $ 2.815.879 11.99 7.405 (10.175.9 28) 4-637.356 Liabilities : Accounts payable $ 5,155 8,263 (5,155 1 8,263 Deposits payable 2.810.724 13.255. 458 (11.437.089 1 4-629.093 Total liabilities 9 2.815.879 13.26 3.721 ( 11.462.244 ) 4.63 7.356 134 I R I I I I I 1. I 1 1 1 I u i I I I I Ba 1 an c e Balanc July 1, June 3( 1p_88 Additions Deductions _148p Assessment District: Assets: Cash and investments $ - 1,049,071 (156,974) 892,O' Accrued interest - 15 .GO6 - 15.6( 1.064.677 (156.974) 907.7( Total assets - Liab i 1 it ie s : Assessments payab le $ 1,064.6 77 (156,974) 907.7 - Totals - All Agency Funds: Assets : Cash and investments $ 5,349,069 13,888,053 (10,416,428) 8,820,6 Accrued interest 2.154 17.121 (2.154) 17.1 Total assets 5.35 1.223 13.905. 174 (10.418.582) 8.837.8 Accounts payable $ 5,155 8,263 (5,155) 892 Liabilities : Deposits payable 4,088,096 13,639,084 (11,523,528) 6,203,6 1,718,l Assessments payab le - 1,064.677 (156.974) 907.7 Total liabilities $ 5.35 1.223 15.172.249 (11.685. 657) 8.837.8 Deferred compensation payab 1 e 1,257,972 460,225 - 135 General Fixed Asse ts Account Grow General fixed assets are those flxed assets used in operations accounted fc in governmental funds. General fixed assets include all fixed assets nc accounted for in an enterprise, internal service9 or trust and agency fund. 136 I 1 I I I I I I I I 1 1 I I I I 1 I 1 CITY OF CARLSBAD General Fixed Asset Account Group Schedule of General Fixed Assets by Function June 30, 1989 Cul t ur e Public Pub 1 ic General and Government Recreation %L&i Works B!d Land $ 492,035 15,905,615 2,150,407 1,019,408 19,567,46 Buildings 1,696,555 6,363,133 14,736,083 - 22,795,77 Improvements 338,613 901,477 120,563 298,523 1,659,17 Furniture and fixtures 1,445,582 646,593 2,527,695 134,997 3,754,86 Construction in 2.367.27 2.387.05 To tal $ 3.972.785 26.184.09Q 18.554.533 1.452.928 50. 164.33 progress - 219.785 - 137 CITY OF CARLSBAD General Fixed Asset Account Group Schedule of General Fixed Assets by Source June 30, 1989 As of June 30, 1986 Net additions subsequent to June 30, 1988: $ 27,136,537 General Fund 11,485,617 Community Development Block Grant 285,751 State grants 167,066 8,612 Street lighting Park development 2 9 983,846 Public facilities 5,720 , 280 Redeve lopmen t 2.221.907 $ 30.164.336 Federal grants 234,690 Total investment in general f ked assets 138 I I I I 1 I --==-SS\---~ I 7 R 139 CITY OF CARLSBAD General Expenditures by Function Last Ten Fiscal Years Fiscal General Public Public Culture- Cap; tal D< Year Total (1) Go vernment Safety Works We1 fare Recreation Projects w 1979-80 $ 12,176,699 2,977,618 3,027,900 2,344,302 544,597 1,537,289 1,596,829 14f 1980-81 16,407,099 3,648,090 3,407,025 2,868,460 608,009 2,261,889 3,469,027 144 1981-82 18,623,122 2,852,858 4,888,849 2,501,925 650,202 2,303,143 4,996,323 429 1982-83 15,463,426 2,272,174 5,285,609 2,935,279 727,155 2,573,014 1,233,048 437 1983-84 16,723,893 2,551,209 5,813,451 3,408,568 825,236 2,764,121 1,033,261 358 1984-85 22,279,729 3,008,056 7,020,105 2,974,480 860,556 3,278,290 4,619,242 519 1985-86 36,206,852 4,124,793 7,851,268 6,412,310 1,052,394 3,710,505 12,333,087 722 1986-87 49,443,365 5,645,325 9,452,556 4,601,389 1,321,504 4,530,701 23,032,108 859 1987-88 41,960,153 5,988,144 10,102,111 5,375,688 1,584,897 5,358,475 11,216,835 2,334 1988-89 55,745,009 7,139,689 11,728,140 6,336,093 1,614,015 5,808,094 19,786,724 3,332 (1) Includes General, Special Revenue, Debt Service and Capital Projects Fundr GENERAL EXPENDITURES BY FUNCTION 1988-89. PUBLIC SAFETY 21% PuaLic WORKS ii 8.3 GENERAL GOVERNMENT 13% 73 WELFARE 3% ie .................... .................... .................... .................... DEET SERVICE 8% CU LT URE -R ECR EAT I ON 10% 58 3.3 CAPITAL PROJECTS 35% 19 0 ULUEI ARE IN YILLIONI Source: City of Carlsbad Comprehensive Annual Financial Reports. 140 t I I I I 1 1 I I I *I I I TOTAL EXPENDITURES-LAST TEN YEARS MILLIONS OF DOLLARS 60 i ~ I I 50 I 40 I I 30 20 10 0 INCLUDES GENERAL. SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECT FUNDS I I I GENERAL REVENUE LAST TEN YEARS YILW*. w WLUU 1980 1981 1982 1989 lea4 1986 1980 la87 la88 la80 ~- PROPERTY TAX AND SALES TAX REVENUE LAST TEN YEARS YILW”. 0. OOcLl~ 14 12 10 0 a 4 2 0 I PROPERTY TAX B SMES TAX ___________. _. TRANSIENT OCCUPANCY TAX LAST TEN YEARS Y(LLIQ*~ 01 ornuam 3 2.6 1 I 8 i 2 l.6 1 0.6 0 1980 1881 882 1883 1884 1986 1986 lS87 1988 1989 CHARGES FOR SERVICES LAST TEN YEARS YILLIOI~ W DOLLAM. 14 12 10 8 e 4 2 0 1980 1981 1982 1983 1984 1986 19BB -87 lS8 0 I I I I I I I I I 1 I I 1 I I # I I E 1 I 1 I I 1 I I CITY OF CARLSBAD Computation of Legal Debt Margin June 30, 1989 25% of net assessed valuation (1) $ 1.050.867.28 Debt limit (15% of net assessed valuation as adjusted) $ 157.630.09 Amount of debt applicable to debt limit: Bonded debt ( 2) 23,780,OO Certificates of participation 8,690,OO Capitalized leases 1.554.75 Total amount of debt applicable to debt limit 34.024.75 Legal debt margin $ 123.605.33 Percent of debt limit 21.5 (1) Beginning January 1, 1987, a change in state law required the Coun Assessor to assess all taxable property at 100% of full value as oppos to the prior practice of assessing property at 25% of full value. To consistent with previous years, the assessed valuation used for th computation is at 25% of full value. (2) Total bonded debt: Library and Sewer $ 420,OO Parking and Building Authorities 2,055 ,OO College Boulevard Assessment District 9,305 ,OO Tax Allocation Bonds 12.000 100 $ 23.780.00 Total bonded debt 145 CITY OF CARLSBAD Schedule of Direct and Overlapping Bonded Debt June 30, 1989 1988-89 Total Assessed Valuation: $4,287,316,546 (after deducting $10 redevelopment tax allocation incremen Debt June 30, Direct and Overlaming Bonded debt: % Amlicable Uw2 San Diego County Building Authorities 4.667% $ 14,084,306 San Diego County Water Authority 4.827 1,302,566 San Diego County Water Certificates of Participation 4.827 4,672,536 Metropolitan Water District 0.777 5,663,475 Carlsbad Unified School District (various issues) 96.812 - 96.816 408 , 314 Carlsbad Unified School District Authority 96.807 5,300,183 San Marcos Unified School District and San Dieguito Union High School District 9.032 252,896 Encinitas Union School District and Authority 25.377 563,370 Mira Costa Community College District Author i t y 26.254 787,620 Other School Districts Various 3,780 Tri-City Hospital District 32.819 628,484 Palomar Polmerado Hospital District & Authority 0.719 106,233 Leucadia County Water District & I.D. #l 51.431 & 2.884 277 , 342 San Marcos County Water & I.D.'s #1,2,6 150,566 Costa Real (Carlsbad) Municipal Water' District Certificates of Participation 99.984 13,882,778 Costa Real (Carlsbad) Municipal Water 844,765 Olivenhain Municipal Water District I .D. #l 31.811 407,181 City of Carlsbad 100.000 420,000 City of Carlsbad Building Authorities 100.000 10,745,000 Certificates of Participation 22.574 1,591,434 6.534 - 10.826 District I.D. #2, 3, 4 98.792 - 99.973 City of Carlsbad 1915 Act Bonds 100. 000 14.438.940 $ 76,531.769 (1) Excludes tax allocation bonds and capitalized leases. (2) Includes City of Carlsbad Building and Parking Authorities and the Pu Improvement Corporation. Ratios to Assessed Valuation: Direct Debt ($11,165,000) 0.26% Total Debt 1.79% Source: California Municipal Statistics, Inc. 146 3 I 1 1 1 RATIO OF DEBT SERVICE TO GENERAL EXPENDITURES RATIO I* s 1.4 -, 0.6 - 0.4 - 0.2 - 0 I980 1981 l882 1983 1864 1986 lU88 l887 le88 1988 CITY OF CARLSBAD Revenue Bond Coverage Water Bonds Last Ten Fiscal Years Net Revenue Direct Available Fiscal Gross Operating for Debt Debt Service Reauirements Year Revenue Famenses Service Principal Interest Total Cover 1979-80 $ 1,806,817 1,333,560 473,257 95,000 80,377 175,377 270 1981-82 2,084,262 1,620,519 463,743 215,000 69,715 284,715 163 1982-83 1,934,415 1,945,681 (11,266) 115,000 64,492 179,492 (6 1983-84 1,672,564 1,557,173 115,391 (1) 56,875 56,875 203 198L-85 1,371,214 1,119,336 251,878 125,000 50,138 175,138 144 1985-86 1,522,383 1,317,953 204,430 130,000 42,531 172,531 118 e 1986-87 1,532,953 933,368 599,585 140,000 38,549 178,549 336 1987-88 1,637,819 1,334,525 303,294 150,000 29,096 179,096 169 1988-89 1,760,102 1,195,822 564,280 157,000 21,211 178,211 317 1980-81 1,977,591 1,655,756 341,835 105,000 74,985 179,985 190 (1) In 1983-1984 the City began recording principal payments for the Wate Revenue Bonds in the year they became payable. In prior years principa payments had been recorded as paid on June 30 of each year rather tha July 1 of the following year. Source: City of Carlsbad Comprehensive Annual Financial Reports. 148 I R 1 1 I 8 I I I ll I ~ 2000 - 1500 - 1000 - I 500 - 0 1980 1981 1982 1983 1984 1985 1986 1987 1908 1989 I I I I I I I I - I I GROSS REVENUE --I- OPERATING EXPENSES I I 1 I I 1 1 I I r NET REVENUE AVAILABLE FOR DEBT SERVICE ! LAST TEN YEARS THOUSANDS OF DOLLARS 700 600 - 500 - I 300 -. 200 -' 100 - - 100 I I 1 I I I I I 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 CITY OF CARLSBAD Demographic Statistics Last Ten Fiscal Years City Population P opula t i Square Percent coun ty Percen Year Miles Population (4) Change Pouulation (1 ) of coun 1980 29.4 35 9 448 10.4 1,808,200 2.0 1981 29.7 35,606 0.4 1,89 9 , 900 1.9 1982 29.8 36 , 172 1.6 1,924,700 1.9 1983 32.0 39,037 7.9 1,986,035 2.0 1984 32.0 40,665 4.2 2,041 9 362 2.8 1985 35.6 44,566 9.6 2,083,359 2.1 1986 36.0 48,872 9.7 2,166,169 2.3 1987 39.7 55,282 13.1 2,240,659 2.5 1988 39.7 58 , 888 6.5 2,327 9 657 2.5 1989 39.7 62,030 5.3 2,418 9 176 2.6 1995 77,310 (3) (2) 2000 84,954 (3) (2) 2010 100,826 (3) (2) ( Es t ima te ) (Estimate) ( Es t ima t e ) (1) Source - County Data Base, San Diego County. (2) County future population estimate not available. (3) Population for City General Plan area - San Diego Association (4) Source - State Department of Finance. Governments Series VI1 population forecast. POPULATION LAST TEN YEARS I* lI(oUU*o. 70 60 50 40 30 20 I IO I I 0 1 I 1080 lQ81 1982 1883 W84 l981 1986 fae7 1088 1889 POPULATION A8 OF JANUARY 1 PER 8mE DEFARTMENT OF FINANCE 150 /7- NET TAXABLE VALUE LAST TEN YEARS BILLIONS OF DOLLARS 1 I 8 1 1 1 I I I 8 1 I I I I 8 1 I e To tal Business Net As se s sed Inventory Homeowner's Assessed Valuation ex em^ t ions Exem t ions Valuation 1,3151831,744 20,829,192 44 9 847,600 1,250,154,95 1,492,664,132 - 48,388,200 1,444,275,93 1,735,841,237 - 48,759,200 1,687,082,03 48,885,200 2,015,289,90 2,244,519,647 - 49,921,200 2,194,598,44 2 , 548 , 122 , 552 - 52,235,400 2,495,887,15 2,952,177,060 - 57,943,200 2,894,233,86 3,517,951,761 - 65,492,000 3,452 , 459 , 76 4,014,899,694 - 75,650,400 3,939,249,29 ' 4,287,316,546 - 83,847,400 4,203,469,14 - 290649175 9 109 153 MILLIONS OF DOLLARS 300 250 200 150 too 50 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 j 8 1 I 8 I I I I TOTAL TAX LEVY LAST TEN YEARS MILLIONS OF DOLLARS 14 12 - .. . 10 - . .. __ .. 8 6- --- 2 -- 0 I I I I I I I I 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 CITY OF CARLSBAD Special Assessment Billings and Collections College Boulevard Assessment District Last nree Fiscal Years Fiscal Special Assessment Special Assessment I Year Bi 1 1 ings Collected Prior to 1987 N /A N/A 1987 $ 1,000,362 996,884 1988 988,116 987,682 1989 984.718 985.207 $ 2.973-196 2,969-773 Note: There were no special assessment billings for the College Bouleva Assessment District prior to the fiscal year ended June 30, 1987. Source: County of San Diego Office of the Auditor and Controller. 156 CITY OF CARLSBAD PERS Historical Trend Information Last Two Fiscal Years 1 I I I u 1 l 1 I 1 8 1 1 I 1 I I Fiscal vear ended June 3f I rn 1987 Net assets available for benefits (at cost) $ 28,385,378 23,855,5: Pension benefit obligation (PBO) 30,249,445 26,158 , 7; Net assets as a % of PBO 93.8% 91 4 Unfunded pension benefits obligation 1,864 $06 7 2,303 , 2f 1 Annual covered payroll 12,170,100 12 , 147,9( 14.2% 19. Unfunded PBO as a % of annual covered payroll Ten year historical trend information is not available from the Califon Public Employees Retirement System, therefore, only the available informatj is presented. Source: The California Public Employees Retirement System. 157 CITY OF CARLSBAD Principal Employers 1988-1989 Firm Product/Service EmDlove Manufacturing: Hughes Aircraft Company, Industrial Products Division Electronic Components 1 ,500 Puritan-Bennett Corporation Medical Equipment 450 Eaton-Leonard Corporation Vending Machines 275 Beckman Instruments Microbics Operation 240 Dyna Pled, Inc. Emergency Medical Products 195 Watkins Products Spas 185 Sierracin-Magnedyne Inc. Electronic Motors 162 Sargent Industries Industrial Sleafs 150 International Totalizer System Off-track Betting Systems 145 Don Joy Orthopedic Braces 115 Taylor Made Golf Golf Equipment 200 -: Plaza Camino Real Shopping center (5 major department stores) 1,000 La Costa Hotel & Spa Hotel & health spa 1,000 Car Country Auto Dealers a11 major agencies 500 Carlsbad Unified School District 'Education 4 25 San Diego Gas & Electric, Encina Power generation 414 City of Carlsbad Munic i pal Gove men t 479 Farmer's Insurance - Regional Insurance 3 20 Pea Soup Andersen's Restaurant/Hotel 250 Jazzercise Dance Fitness 101 Daniel's Cablevision Cable Tv 100 Car dealers Source: City of Carlsbad Chamber of Commerce. 158 I I 8 I I I I 1 8 I 8 I 1 I I I I CITY OF CARLSBAD Principal Taxpayers 1988-1989 Percentage total net assessed TaxDave r TvDe o f Business Valuation Valuation( La Costa Hotel & Spa Corp. Hotel & Spa $ 382,538,365 9.10% San Diego Gas & Electric Co. Power Generation 313,000,000 7.45% Upland Industries Corp. Land Developer 92,356,920 2.20% Hughes Aircraft Co. (Corp.) Manufacturer 103,724,073 2.47% 1.82% Fieldstone/La Costa Asso. Land Developer 76,366,129 Multi-Family Associates Land Developer 27,144,592 .65% Plaza Camino Real Shopping Center 27,033,403 .64% Traweek Investment Fund Land Investor 25,086,140 .60% I Vista Hacienda Land Investor 24.537.573 .58% $ LO96 -589.89 0 26.10% Carlsbad IM, Ltd. Hotel 24 , 802,695 .5 9% (1) Net assessed valuation fur 1988-1989 - $4,203,469,146 I Source: County of San Diego Office of the Auditor and Controller. 15 9 CITY OF CARLSBAD Miscellaneous Statistical Information Date of incorporation July 16, 1952 Type of city General Law Form of government Council/Manager Area 39.7 sq. miles Population 62,030 Number of street lights 4,198 Miles of streets 199 Number of stations 5 Number of firefighters and officers 67 Fire Protection: Police Protection: Number of stations 1 Number of sworn police officers 73 Municipal Water District: Number of customers 15,584 Average daily consumption Miles of fines and mains 219 Miles of sewers 102 14.8 million gallons Recreation and Culture: Number of parks (improved Area of parks 329.11 acres Pools 1 Number of libraries 2 Number of volumes 196,313 and unimproved) 37 Total number of City employees 479 160 CITY OF CARLSBAD Annual Debt Service Requirements 1 I I 8 I 1 I I 1 I 1 I il I I I I 1960 WATERWORKS REVENUE BONDS Fiscal Interest Due Interest Due Total Principal Due Total Annu; x!=aX w JanUa rv 1 Interest w Debt Semi( 1989-90 $ 2,459 1,259 3,718 60,000 63,718 1990-91 1,259 - 1.259 65.000 66.259 I $ 3.718 1.259 4.977 125..ooo 129.977 1970 WATERWORKS REVENU E BONDS Fiscal Interest Due Interest Due. Total Principal Due Total Annua Year UYJ Januarv 1 Interest Julv 1 Debt Servic 1989-90 $ 6,000 3,000 9,000 100 y 000 109,000 1990-91 3. OOQ - 3.000 100,000 103,000 $ 9.000 3.000 12,ooo 200.000 212.00Q 1962 SERIES B. GEXERAL OBLIGATION. SEWER BONDS Fiscal Interest Due Interest Due Total Principal Due Total Annt Year ibidL!z Janua rv 1 Interest JdLl Debt Servj 1989-90 $ 5,040 3,420 8,460 90,000 98,46( 1990-91 3,420 1,800 5,220 90,000 95,22( 101.80( 1991-92 1.800 - 1.800 100.000 295.48C $ 10.260 5.220 1.5 480 28V.000 I Source: Debt Service Schedules Obtained from Respective Trustees. 161 CITY OF CARLSBAD Annual Debt Service Requirements, Continued 1962 SERIES C, GENERAL OBLIGATION. SEWER BONDS Fiscal Interest Due Interest Due Total Principal Due Total Ann1 Year Julv 1 JaIlUa rv 1 Interest Jib4 Debt Servj 1989-90 $ 1,406 938 2 , 344 25,000 27,341 1990-91 937 46 9 1,406 25 9 000 26 9 406 1991-92 469 - 469 25.ooo 25.469 $ 2.812 1.407 4.219 75.000 79.219 1966 LIBRARY GENERAL OBLIGATION BONDS Fiscal Interest Due Interest Due Total Principal Due Total Annu Year m Janus rv 1 Interest Januarv 1 Debt Servi 1990-91 1,013 1,013 2,026 20,000 22,026 1989-90 $ 1,462 1,462 2,924 20 , 000 22,924 25.000 26.124 1991-92 562 562 1.124 $ 3.037 3.037 6.074 65.000 71.074 1967 CARLSBAD BUILDING AUTHORITY REVENUE BONDS Fiscal Interest Due Interest Due Total Principal Due Total Annu; Year Decembe r 15 2hEkLu Interest December 15 Debt Semi t 1989-90 $ 3,600 2 , 850 6,450 25 , 000 31,450 1990-91 2,850 1 9 950 4,800 30 , 000 34 , 800 1991-92 1 , 950 1,050 3,000 30,000 33,000 1992-93 1.050 - 1.050 35.ooo 36.050 *9.lf0 5,850 r5,300 120.000 135.300 162 1 I 1 I I I I R 1 I 1 li 1 I 1 I I CITY OF CARLSBAD Annual Debt Service Requirements, Continued 1969 CARLSBAD PARKING AUTHORITY REVENUE BONDS Fiscal Interest Due Interest Due To tal Principal Due Total Annu; Debt Servic 1989-90 $ 23,181 20 , 800 43,981 75,000 118 , 981 1990-91 20 , 800 17,600 38 , 400 100 , 000 138,400 1991-9 2 17,600 14,400 32,000 100,000 132,000 1992-93 14,400 11,200 25 , 600 100 , 000 125,600 1993-94 11 , 200 8,000 19 9 200 100 , 000 119 , 200 1994-95 8,000 4 , 000 12,000 125,000 13 7,000 4tooo 125,000 129tOOO $ $9.181 76,ooo 175.181 2zLQQQ 900.181 ka October 1 Ami1 1 Interest Qctober I I 1995-96 4,ooo - 1981 CARLSBAD PARKING AUTHORITY REVENUE BONDS Fiscal Interest Due Interest Due Total Principal Due Total Annu Year Aumst 1 February 1 Interest Februarv 1 Debt Semi 1989-90 $ 48,400 48 , 400 96,800 60,000 156,80 1990-91 46 , 000 46 , 000 92,000 75,000 167,OO 1991-92 43,000 43 , 000 86,000 75,000 161,OO 75,000 155 ,OC 19 92-93 40 , 000 40 , 000 80 , 000 1993-94 37,000 37,000 74,000 100,000 174,OC 1995-96 29,000 29,000 58,000 100,000 158 ,OC 1996-97 25 , 000 25,000 50,000 100 , 000 150,OC 1997-98 21 , 000 21 , 000 42,000 125,000 167,OC 1998-99 16,000 16,000 32 , 000 125 , 000 157,OC I9 9 9-00 11,000 11,000 22,000 125,000 147 ,O( 2000-01 6.ooo m 12.ooo 150. OOQ 162.0( I $ 355,400 355.490 710,800 1,210.000 1.920.W 1994-95 33,000 33,000 66 yo00 100,000 166 ,OC 163 CITY OF CARLSBAD Annual Debt Service Requirements , Continued 1988 CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION TAX ALLOCATION BONDS Fiscal Interest Due Interest Due Total Principal Due Total Ann1 XeaX October I, Ami1 1 Interes t April 1 Debt Serv 1989-90 $ 438,676 438,676 877 , 352 - 877,351 1990-91 438,676 438,676 877,352 255,000 1,132,352 1991-92 431 , 664 431,664 863 , 328 27Q,OOO 1,133,32€ 1993-94 415 , 414 415,414 830,828 305 , 000 1 , 135,828 1994-95 406,111 406 9 111 812 , 222 330,000 1,142 , 22: 1995-96 395,799 395 , 799 791,598 355 , 000 1,146,59t 1996-97 384,261 384,261 768,522 380,000 1 , 148 9 5 2: 1998-99 357,559 3f7 ,f59 715,118 440 9 000 1,155 9 11F 1999-00 342,159 342,159 684,318 475,000 1,159,31$ 2000-01 325 , 296 325 9 296 650,592 510,000 1,160,592 2001-02 306 , 681 306,681 613,362 550,000 1,163,362 200 2-0 3 286 , 332 286 , 332 572,664 5 95 , 000 1,167,661 2003-04 263 , 870 263,870 527 , 740 640,000 1,16 7,74C 2004-05 239 9 550 239,550 479 , 100 690,000 1 , 169,lOC 2005-06 213,330 213,330 426,660 750,000 1 , 176,66C 1 9 179,660 2006-07 184,830 184,830 369 , 660 810 , 000 200 7-08 154,050 ’ 154,050 308,100 875,000 1,183 , 100 2008-09 119 , 925 119,925 239,850 945,000 1,184,850 2009-10 83,070 83,070 166,140 1,025,000 1,19 1 , 140 2010-11 43.095 43.095 86.190 1.105.00 0 1.191.190 Total $ 4.625.848 6.625.848 13.251,696 12 .ooo. 000 25.251.696 1992-93 423 , 969 423,969 847 , 938 290 , 000 1 , 137,93~ 1997-98 371,531 371,531 743,062 405 , 000 1,148 906; 164 I 1 I I I I I I 11 i 1 I I I I I I I I crTy OF CARLSBAD Annual Debt Service Requirements, Continued 1988 C ERTIFICATES OF PARTICIPATION Fiscal Interest Due Interest Due Total Principal Due Total Annu; Year Auqus t 1 February 1 Interest August 1 Debt Servic 1989-90 $ 323,793 320,774 644,567 115,000 759,567 19 90-9 1 320,774 314,311 635,085 235 , 000 870,085 1991-92 314,311 307,124 621,435 250,000 871,435 1992-93 307 , 124 299 , 324 606,448 260,000 866,448 1993-94 299,324 290,730 590,054 275,000 865,054 1994-95 290,730 281 , 143 571,873 295,000 866,873 1995-96 281 , 143 270,5 90 551,733 315,000 866,733 1996-97 270,590 259,205 529,795 330 , 000 859 , 795 1997-98 259,205 246 , 780 505,985 355 , 000 861,030 1998-99 246 , 780 233 , 100 479,880 380 , 000 859,880 1999-00 233,100 217 , 930 451,030 410 , 000 860,985 2000-01 217,930 201,400 419,330 435,000 854 , 330 2001-02 201 , 400 182 , 600 384 , 000 470 , 000 854,000 2002-03 182,600 162,200 344,800 5 10,000 854,800 2003-04 162,200 140,000 302 , 200 555 , 000 857,200 200 4-0 5 140 , 000 116,000 256,000 600 , 000 856,000 2005-06 116,000 90,400 206 , 400 640 , 000 846,400 2006-07 90,400 62,600 153,000 695,000 848 ,OOC 62,600 36,600 99 9 200 750,000 849 9 2OC 2008-09 36.600 - 36.600 815 .ooo 851.60C 2007-08 Total $ 4.356.604 4.032.811 8.389.415 8,690.000 17.079.41: 165 CITY OF CARLSBAD Annual Debt Service Requirements, Continued COLLEGE BOULEVARD ASSESSMENT DISTRICT BONDS Fiscal Interest Due Interest Due Total Principal Due Total Ann1 Year Aumst 1 February 1 Interest Auaust 1 Debt Serv: 1989-90 $ 361,615 352,840 7149455 260,000 974,45! 1991-92 343,040 332,390 6 75 , 430 300,000 975,43( 1993-94 320 , 790 308,025 628,815 345,000 973,811 1990-91 352,840 343,040 695,880 280,000 975,88( 1992-9 3 332,390 320,790 653,180 320,000 973,18( 1994-95 308,025 294,150 602,175 370,000 972,171 1995-96 294,150 279 , 140 573 9 290 395,000 968 , 29C 1996-9 7 279 , 140 262,778 541 9 918 425 9 000 966,918 1997-98 262,778 244,952 507 , 730 460 9 000 967 9 73C 1998-99 244,952 225 , 648 470 , 600 495,000 965,60C 1999-00 225,648 204,712 430 , 360 530,000 960 , 36C 2000-01 204,712 182,000 386 9 712 575,000 961,712 2001-02 182 ,000 157,200 339,200 620,000 959,200 200 2-0 3 157,200 130,400 287,600 670,000 957,60C 2003-04 130,400 101,400 231,800 725,000 956,80C 2004-05 101,400 70,200 171,600 780 , 000 951,600 951,600 200 5 -0 6 70,200 36 , 400 106,600 845,000 2006-07 36.400 - 36.400 9lO.OOQ 946.400 To tal $ 4.207.68Q 3.846.015 8.053 i 745 9.305 .OOQ 17.358.745 166