HomeMy WebLinkAbout1993-01-26; City Council; 12046; 1991-92 ANNUAL FINANCIAL REPORTS CAFR- w
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MTG.'1/2h/9.1 1991-92 ANNUAL FINANCIAL REPORTS CITY A
DEPT. F1N CITY M
RECOMMENDED ACTION:
Accept the 1991-92 City of Carlsbad Comprehensive Annual Financial Report (CAFR), and
the annual reports for the Parking and Building Authorities, the Public Improvemen
Corporation, and the Redevelopment Agency.
ITEM EXPLANATION
Each year an independent auditor examines the City's financial records and for the fi.ftl
year, the audit firm of KPMG Peat Marwick was retained. The audit process requires severa
months of on-site examination, testing, and reconciliation of investments, bank statements
accounting records, warrants issued, payroll records, appropriations, fixed assets, revenue
and expenditures. The end result is an opinion on the fairness of the presentation of th
financial data within the reports. As in the past, this year we received an unqualifiei
opinion on all of our annual reports. In addition, the City CAFR has received awards fo
excellence from the Government Finance Officers Association of the United States an
Canada (GFOA) and the California Society of Municipal Finance Officers (CSMFO) sinc
1986. The 1991-92 CAFR will only be submitted to the CSMFO award program this yea
due to budget constraints.
The reports show the financial condition of the City at June 30,1992. The combined asset
of the City of Carlsbad are $341 million, with fixed assets comprising 48% and cash an
investments at 34% of the total. Total City expenditures were $77 million, a decrease c
$14.7 million from 1990-91. Reduction in capital projects spending for street improvemen1
funded by special assessment districts was the main cause of the decreased expenditure:
however, water and sewer enterprise fund expenses increased significantly because of high€
sewer plant charges, depreciation, and write off of the Calavera Hills Sewer Reclamatio
Facility.
Combined revenues totaled $82 million, a $17 million decline from last year's total of $9
million. Decreased revenues are directly linked to recessionary influences on taxes ar
construction fees, diversion of revenues to the state and county, fewer building permi
resulting in less funding for capital projects, and the sale of Alga Road assessment distri
bonds in 1990. These decreases were partially offset by increased receipts in the Polic
Asset Forfeiture fund from the sale of forfeited crime-related property and higher sewer ar
water revenues.
Undesignated reserves for the general fund and capital projects remained at approximate
$8 million and $6 million respectively; while special revenue reserves increased to ?
million due to greater Police Asset Forfeiture unappropriated funds. Increases in availab
reserves are also reflected in the sewer and water enterprise funds as well as the worke:
compensation and vehicle replacement internal service funds. Additional informatic
regarding the City's operations and achievements for 1991-92 can be found in the CAE
Letter of Transmittal.
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Page Two of Agenda Bill No. 12; 0 '[ 6
The CAFR includes all entities for which the City exercises oversight responsibility whic
includes, but is not limited to, the authority to govern, manage, approve budgets az
assume fiscal responsibility. Using this definition as a guide, the 1991-92 CAFR includ
the fkancial transactions of the followkg legal entitles:
The City of Carlsbad
The Carlsbad Municipal Water District
The Parking Authority of the City of Carlsbad
The Building Authority of the City of Carlsbad
The City of Carlsbad Public Improvement Corporation
The Carlsbad Redevelopment Agency
Due to various legal requirements and managerial needs, separate financial statements a
prepared for some of the above entities. These have been previously distributed to tl
respective goveming bodies. Additional copies are on file with the City Clerk and tl
Finance Department.
FISCAL IMPACX
The CAFR and the additional financial reports present the financial condition of the Ci
and its related entities as of June 30, 1992. With the changing economic situation, tl
financial condition of the City also changes. In order to maintain a good understanding
the City's complex financial picture, financial updates are given to Council on a monthly ar
as-needed basis.
EXHIBITS
Audit reports are on file with the City Clerk and Finance Department.
1.
2.
Comprehensive Annual Financial Report for the fiscal year ended June 30, 1992
Parking Authority of the City of Carlsbad, Combined Financial Statements for fisc
year ended June 30, 1992.
Building Authority of the City of Carlsbad, Combined Financial Statements for fisc
year ended June 30, 1992.
City of Carlsbad Public Improvement Corporation, Combined Financial Statemen
for fiscal year ended June 30, 1992.
Carlsbad Redevelopment Agency, Combined Financial Statements for fiscal ye
ended June 30, 1992.
3.
4.
5.