HomeMy WebLinkAbout1993-04-20; City Council; 12187; ESTABLISHING AN ECONOMIC DEVELOPMENT ACCOUNT AND APPROPRIATING FUNDSKa "r .,
ESTABLISHING AN ECONOMIC DEVELOPMENT
ACCOUNT AND APPROPRIATING FUNDS
I I I r- RECOMMENDED ACTION:
Adopt Resolution No. 53-1'4 establishing the Economic Development account within
the Community Development Department and appropriating funds.
I ITEM EXPLANATION:
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One of the Council's major goals for 1993 is to be proactive in the creation of
opportunities for economic development in the City of Carlsbad. The Council's goal
financial viability of the City. Although the Council has encouraged the development
of important improvements to Carlsbad's economic base in the past, this emphasis on
future opportunities allows the City to play a more visible role in the economic
development process.
On March 17, 1993 the Council directed staff to formally begin work on the first
strategic plan developed under this new goal. This effort is aimed at creating an
economic development plan for the Carlsbad Ranch project which will ensure that the
resulting development :
1) Is compatible with the City's policies and fiscal objectives.
2) Provides both tangible and intangible benefits to the City,
3) And has had adequate staff dedicated to the project to ensure that the public
has been involved and informed, that applications are processed in a timely
manner, and that the City has taken advantage of the economic tools available
to attract and retain target industries,
was developed in recognition of the importance of economic growth to the future
In the agenda bill presented on March 17, staff indicated that the general economic
development effort would have a cost associated with it in both staff time and
expenditure of funds for related services. No budget was established for the program
at that time, however staff indicated that a follow up agenda bill would address the
question of establishing a budget for these services.
At this time staff is recommending the establishment of an Economic Development
account within the Communrty Development Department to account for the costs
related to all economic development activities. This account would have an initial
appropriation of $50,000 in 1992-93, with any unexpended funds being carried over
into 1993-94 to continue the program.
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Staff has identified a total of $28,000 which can be made available and transferred into
this account from savings in other general fund departments. Therefore, the Council
is being asked to appropriate an additional $22,000 to bring the total account balance
up to the recommended $50,000.
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Page Two of Agenda Bill No. /a, 183
The Economic Development Account would fund a variety of activities related to a
broad range of services. Some examples of these activities are shown below:
- Arranging a Bio-Tech Industry tour and event to showcase the City of
Carlsbad industrial parks to the high-tech/bio-tech industry, - Funding a wide range of consulting services related to identifying and
attracting target industries. - Supporting the Carlsbad Ranch economic development strategy efforts
including special services, travel, presentation supplies, meeting
expenses
Membership in the San Diego Economic Development Council to
support Carlsbad’s search for desirable industries.
target industries.
- Information brochures highlighting the City of Carlsbad’s interest in
The attached resolution will create the Economic Development Account, appropriate
$22,000 into this account to bring the total to $50,000, authorize the Council and/or
staff to travel out of state as required by these economic development efforts, and
authorize the carry over of any unexpended funds in this account as of June 30, 1993
into fiscal year 1993-94. Travel related to economic development efforts may include
visits to corporate headquarters, on-site visits to facilities constructed by companies
proposing to locate in Carlsbad, meetings with legislators, and other similar travel. In
the case of the Carlsbad Ranch project, Council and/or staff may visit sites both in this
Country and in Denmark to evaluate the type of project being proposed for Carlsbad.
FISCAL IMPACT:
Staff is recommending the creation of the Economic Development Account to allow the
City to track the costs related to pursuing and retaining target industries. Without this
account costs related to these efforts would be spread throughout the budget making
it difficult to report to the Council on the use of City funds in support of these efforts.
The initial appropriation of $50,000 will allow the staff to begin working on the
programs outlined above this fiscal year, Any funds not expended this year will be
carried over into 1993-94 for expenditure in the future. Staff will return to Council as
necessary to request additional funding for specific projects that may exceed the
amount of funds available.
Appropriation of $50,000 represents the sum of two sources of funding. The first
source is savings available in other general fund accounts. The use of these savings
in this program will not reduce any existing program or service level. The second
source of funds is the appropriation of $22,000 from the General Fund Balance,
Council may use these funds as necessary to finance the operations of the City. Staff
typically recommends that the Council limit the use of the General Fund Balance to
one-tine and non-recurring costs. The funding of the Economic Development Account
is seen as a controllable non-recurring expenditure since the use of these funds for
economic development efforts will be on a case by case basis.
EXHIBITS:
1. Resolution No.93-ll3 Establishing the Economic Development Account.
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RESOLUTION NO. 93-113
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, ESTABLISHING THE
ECONOMIC DEVELOPMENT ACCOUNT, AND
AUTHORIZING THE APPROPRIATION AND
EXPENDITURE OF FUNDS
WHEREAS, the City Council of the City of Carlsbad has established goals and
objectives for the Ci that direct the efforts of the City staff; and
WHEREAS, the City Council’s Goals and Objectives include provisions for
achieving economic growth and stability for the community through proactive efforts
to attract target industries to the City of Carlsbad that will provide a strong economic
base; and
WHEREAS, the City staff has proceeded as directed by the City Council with
the creation of a specific economic development strategy for’the Carlsbad Ranch
Project; and
WHEREAS, the carrying out of the economic development portion of the
Council’s Goals and Objectives will require the expenditure of funds for services, travel,
and supplies not currently funded by the existing general fund budget.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City
of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the Economic Development Account is hereby created as part of
the Community Development Department General Fund budget.
3. That the amount of $22,OOO is hereby appropriated from the General
fund Balance into the Economic Development Account, and is hereby combined with
other funds transferred into this account from savings in general fund departments ’
bringing the total balance to $5O,OOO.
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4. That the City Council and/or City staff are hereby authorized to travel
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as necessary outside the state of California when carrying out business related to
Economic Development.
5. That any balance in the Economic Development Account remaining at
the end of a fiscal year 1992-93 is to be carried over and appropriated as part of the
1993-94 General Fund budget.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Carlsbad, California, on the 20th day of APRIL , 1993, by the
following vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin
NOES: None
ABSENT: Council Members Nygaard, Finnila
ATTEST: ..
(SEAL)