HomeMy WebLinkAbout1993-08-10; City Council; 12351 Exhibit 1; Comprehensive Annual Financial Report1 I Comprehensive
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Annual Financial Report
for the fiscal year ending JUNE 30, 1992
CITY OF CARLSBAD, CALIFORNIA
Claude "Bud Lewis
MAYOR PRO TEM 1 Ann Kulchin
I CITY COUNCIL
Eric Larson
Julianne Nygaard I Margaret Stanton
CITY MANAGER
Raymond R. Patcheft
FINANCIAL MANAGEMENT DIRECTOR
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I James F. Elliott
1 FINANCE DIRECTOR
Lisa Hildabrand I
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Prepared by the Finance Department
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I CITY OF CARLSBAI)
Comprehensive Annual Financial Report
Year ended June 30, 1992
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TABLE OF CONTENTS
INlcRODUCTORY SECTION
Table of Contents
Letter of Transmittal
Location Map
Certificate of Achievement for Excellence in Financial
Reporting, Government Finance Officers Association
List of City Officials
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Independent Auditors' Report I General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance - All Governmental Fund Types
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
(Budgetary Basis) All Governmental Fund Types
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings - All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
Notes to Combined Financial Statements
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CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year ended June 30, 1992
TABLE OF CONTENTS. CONTINU%B
FINANCIAL SECTION. Con tinued 5!
Supplemental Data:
Governmental Funds:
General Fund:
Schedule of Revenues - Budget and Actual (Budgetary Basis)
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
Special Revenue Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
Debt Service Funds :
Combining Balance Sheet
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
Capital Project Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
Proprietary Funds:
Enterprise Funds: Combining Balance Sheet
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
Combining Statement of Cash Flows
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CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year ended June 30, 1992
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LE OF CONTENTS. COW-
FINANCIAL SECTION. Con thued
Supplemental Data, Continued:
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Proprietary Funds, Continued:
Internal Service Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
Combining Statement of Cash Flows
Fiduciary Funds :
Agency Funds:
Combining Statement of Changes in Assets and Liabilities
Account Groups:
General Fixed Asset Account Group:
Schedule of General Fixed Assets by Function
Schedule of Changes in General Fixed Assets
by Function
Schedule of General Fixed Assets by Source 1 1
Schedules of Annual Debt Service Requirements 1
STATISTICAL MWRMATIQM
(Not Covered by Independent Auditors' Report)
General Expenditures by Function, Last Ten Fiscal Years 1
General Revenues by Source, Last Ten Fiscal Years -
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CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year ended June 30, 1992
TABLE OF CONTENTS. CONTINUED
STATISTICAL INFORMATION. Con tinued - FA
Ratio of General Bonded Debt to Assessed Valuation and
Net Bonded Debt Per Capita, Last Ten Fiscal Years
Computation of Legal Debt Margin 1
J Schedule of Direct and Overlapping Bonded Debt
Ratio of Annual Debt Service for General Bonded Debt to
Total Governmental Expenditures, Last Ten Fiscal Years 1
Revenue Bond Coverage - Water Utility, Last Ten Fiscal Years 1
Demographic Statistics, Last Ten Fiscal Years
Schedule of Assessed Valuation, Last Ten Fiscal Years
Construction and Business Activity, Last Ten Fiscal Years
Property Tax Levies and Collections, Last Ten Fiscal Years
Special Assessment Billings and Collections, College
Boulevard Assessment District, Last Five Fiscal Years
Principal Employers, 1991-1992
Principal Taxpayers, 1991-1992
Miscellaneous Statistical Information
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I - City of Carlsbad
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November 16, 1992
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD
Carlsbad, California
1991-92 COMPREHENSIVE ANNUAL FKNANCIAL REPORT XE'ITER OF TRANSMIl'TAL
We are pleased to present the 1991-92 Comprehensive Annual Financial Report of the Cit
of Carlsbad to the City Council and the City Manager. This report includes han&
statements of the City, the Housing Authority of the City of Carlsbad, the Parking an
Building Authorities of the City of Carlsbad, the Carlsbad Public Improvement Corporatior
the Carlsbad Redevelopment Agency and the Carlsbad Municipal Water District, as well a
the opinion of our independent auditors, KPMG Peat Marwick. The completion of thi
independent audit is an important part of the total financial management program for thc
City of Carlsbad.
The information found in this report is provided by management to the Council and tht
public to assist those interested in understanding the fiscal condition of the City as of Junc
30, 1992. Responsibility for both the accuracy of the data, and the completeness an(
fairness of the presentation, including all disclosures, rests with the City. To the best o
our knowledge and belief, the enclosed data are accurate in all material respects and arf
reported in a manner designed to present fairly the financial position and results o operations of the various funds and account groups of the City of Carlsbad. fl disclosure:
necessary to enable the reader to gain an understanding of the government's financia
activities have been included.
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Backmound
Carlsbad is located about 35 miles north of the City of San Diego on the southern
California coast. The City is governed by a five member City Council under the
CounciVManager form of government. Carlsbad is a general law city incorporated in 1952.
The City covers about 42 square miles and has a population of 65,661. Industries in the
area include a major regional shopping center, 21 auto dealers, 24 hotels offering 1,884
rooms for tourist lodging, aerospace manufacturing, electronics, golf apparel and equipment
manufacturers, several business and light industry parks, and numerous land developers
building single and multi-family housing in a variety of community settings.
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I 1200 Carlsbad Village Drive - Carlsbad, California 92008-1 989 - (61 9) 434-2867
Services Provided by the City
The City provides the full range of services normally associated with a municipality
engineering, various maintenance services and administration. The City provides water
services through the Carlsbad Municipal Water District, a subsidiary district of the City.
City Council serves as the Board of Directors for the Carlsbad Municipal Water District.
Solid waste collection is provided through a franchise arrangement with a local refuse
collection service.
In addition to the usual city services, Carlsbad offers a variety of programs to help local
residents and businesses. The City operates a redevelopment agency that encompasses 0.4
square miles of the downtown area, as well as a housing authority that provides 415 low
and moderate income families with housing assistance. The City's literacy program, funded
by the General Fund, provides adult education to local area residents. Older Carlsbad
residents receive assistance through the City's senior citizen programs. Also, the City
provides major support for the Convention and Visitors Bureau operated in cooperation
with the Carlsbad Chamber of Commerce. The City supports various service agencies such
Carlsbad residents. Finally, the City has reserved over $300,000 for support of the arts,
art programs, and the purchase of works of art.
including police, fire, parks and recreation, library, planning and zoning, building and
as the Women's Resource Center, YMCA and other agencies providing social services to
Sidcant Events and Accomplishments
During 1991-92 the City experienced many significant events or accomplishments that may
not be evident from a review of the financial statements. Some of the more important
events are shown below.
Balanced Budget - One of the most significant accomplishments this year was successfully
balancing the General Fund budget. As the year progressed, it became evident that the
City would not attain the budgeted $43.8 in General Fund revenues. Departments
decreased expenditures by holding staff at current levels, decreased maintenance and
operating expenses, deferred projects, and cut capital purchases. Through these efforts, the
City was able to keep the General Fund expenditures in line with the revenues and $5.4
million under budget.
General Plan Update - An update of all elements of the General Plan began with a series
of town hall meetings and community forums to receive citizen input. The public review
process continues on the first complete General Plan evaluation since the 1970's. Housing
and source reduction and recycling elements of the General Plan were approved by Council
in 1991-92. In addition, a comprehensive fiscal analysis of the General Plan wa:
completed. The program will provide a tool to evaluate financial implications of curren
and future City policies and decisions.
Habitat Management Plan (HMP) - The City led the state in early recognition of ou
natural resources when City Council approved a program for studying and identifjmg thc
City's biological resources and preparing a Habitat Management Plan within the City. Thc
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HMP will provide policies and mechanisms for the protection of wildlife habitat, especiall
of endangered, threatened, or sensitive species. Phase I, comprised of vegetation mappin
and biological plan development moving toward candidate preserve areas with linkin corridors, was completed in 1991-92. The final plan is expected to lead to application fc
a Habitat Conservation PIan under the federal Endangered Species Act.
Growth Management - 1991-92 was the fifth full year of operation under the City's Growl
Management Program. Under this program, development occurs only when infrastructu
improvements required to serve the development are financed and constructed as a part 1
the development. Standards have been established in eleven areas such as circulatio
libraries, fire protection, parks, drainage, water, sewers, and open space. An outgrow
of this program is a long range capital improvement program which covers the cwent ye(
through buildout of the City. The growth management program, in conjunction with tl
current recession, has had a major effect on the building industry as shown in chart bel01
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DWELLING UNITS CONSTRUCTED
IASTSEVENYEARS
2500
< Growth Managamant ~rnplomentd in 1987. 2000 -
1500 -
1000 -
500 -
0
1986 1987 1988 1989 1990 1991 1992
FISCAL YEAR
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The comprehensive Growth Management Financing Program is an important part of grow
management. This program links the infrastructure funding needs of the City and 0th
agencies, such as schools, together with the needs of development to fund public purpo
projects. The coordinated effort depends on the rational use of Mello-Roos Communi
Facilities Districts, 1913/1915 Act Assessment Districts and fee programs to finan
facilities concurrent with demand without overburdening the land or home owner.
construction of Capital Projects - Because of the sluggish pace of development a~
corresponding decline in developer fees, the City slowed its aggressive capital buildi
program, 4th an outlay of approximately $7 don in 1991-92. Declining revenues 1
to project phasing and moving some planned projects to future years. During the last eig
years, Carlsbad expended more than $1 14 million for capital projects including communi
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parks, a senior center, a civic facility for police and fire, fire stations, main library, major
streets, and sea wall and bluff protection. This dedication to improving the infrastructure
of the City is expected to continue into the foreseeable future as the City implements its
long range capital improvement program.
Community Fa&ty District (CFD) No. 1 - First year taxes for the citywide Community
Facilities District No. 1 were received in 1991-92. The CFD taxes land scheduled for future
development and is the City's first Meno-Roos district. Through bond issues, the CFD will
be used to fund a wide variety of public improvements including civic facilities, freeway
interchanges and major road additions or improvements, which were previously funded on
a pay-as-you-go basis by developer fees. As development occurs for residential property,
the Mello-Roos obligation must be paid in full by the developer when a building permit is
given. Pass-through of the CFD tax is only allowed on property developed for non-
residential or commerciaVindustrial purposes.
Hiring Center - 1991-92 was the first full year of operation for the Hiring Center which
was established in the geographic center of the City. In answer to citizen concerns and to
create employment opportunities, documented workers are encouraged to seek employment
at the facility, where employees are screened and matched with prospective employers.
Homeless Shelter - Homeless local farm workers will have temporary shelter at the La
Posada de Guadalupe in late 1992. The shelter is a cooperative project by Caring Residents
of Carlsbad, Catholic Charities, and the City of Carlsbad. In addition to the 50-bed
dormitory, a kitchen-dining hall, showers and laundry, and amnesty and immigration
services are provided.
Financial Statement Format
This report is designed to provide both summarized and detailed information on the
operation of each of the City's funds. The report is organized as follows:
Financial Section - This section contains the combined or summarized
financial statements for all funds as well as the notes to
the financial statements.
This section provides more detailed information on the
activity within each fund including revenues, expendi-
tures, changes in fund balances, comparisons to budget
figures and other related data.
This section provides data on the City's fiscal activity
over the past ten years including revenues,
expenditures, debt, assessed value, and demographic
information.
Supplemental Data -
Statistical Information -
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account in^ System and Budnetarv Control
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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, each with j
separate function and legal restrictions on the use of resources. In the priva
sector, a corporation may have many "subsidiaries" which make up the pare
corporation. In the public sector, a city government may have a variety of "fund
that provide the basis for separately recording the financial data related to a specif
accounting records. Each fund has been established because of some restriction c
the use of resources received by that fimd. This report includes the transactions c
all entities over which the City Council of the City of Carlsbad has authority (i
defined by the Governmental Accounting Standards Board).
The City's accounting system operates on a modified accrual basis for s
governmental and agency type funds. Governmental funds include the Geners
Special Revenue, Debt Service and Capital Projects Funds. A modified accru
system is one where a) revenues are recorded when received in cash; b) revenuc
are accrued when they are both measurable and collectable within the accountin
period or soon enough after the end of the period to pay liabilities of the perioc
and c) expenditures, other than interest or long-term debt, are recorded whe
activity. A fund is an accounting entity with a complete set of self-balancir
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(2)
1 liabilities are incurred.
(3) The proprietary fund types (the Enterprise and Internal Service Funds) use th accrual method of accounting. Revenues and expenses are recorded when eame
or incurred, respectively.
Internal controls exist within the accounting system to ensure safety of assets fior
misappropriation, unauthorized use or disposition, and to maintain the accuracy (
financial recordkeeping. These internal controls must be established consistent wit)
sound management practices based an the cost/benefit of the controls imposed. Th
cost of a control should not be excessive in relation to its benefit as viewed by Cit
management. The internal controls in existence within the City's system ar
sufficient to ensure in all material aspects both the safety of the City's assets and th
accuracy of the financial recordkeeping system.
Budgetary control is maintained through monthly reports on all revenue an(
expenditure accounts as well as special reports summarizing the financial positioi
of the City. The City Council has the authority to control the budget thou&
adoption of a formal budget at the beginning of each year and by amending th
budget as necessary through the year. Expenditures should not exceed budgetec
figures. All appropriations expire at year end unless specifically carried into the nev
fiscal year by Council action. The Carlsbad Municipal Code requires that thc
Financial Management Director annually prepare a budget for the City Manage
showing estimated revenues and expenditures.
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(5)
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Total City Overa tiOnS
During 1991 -92 the City staff of 495 full-time employees provided a complete range of City
services to the 65,661 residents and many businesses in Carlsbad. Throughout most of its
history, Carlsbad has had the benefit of working with revenues sufficient to meet anticipated expenditures; however, the 1990's show a reversal of this trend. Revenues
stopped growing and state legislation resulted in new mandatory expenditures as well as
the loss of revenues. Over the past two years, Carlsbad has made every effort to maintain
service levels through the deferral of projects and the management of vacant staff positions.
Carlsbad entered 1991-92 with a balanced budget and immediately began to feel the effects
of the economy as revenues fell short of projections. Council and staff took a close look
at budgets in an effort to cut planned expenditures by 10%. Departments were able to
achieve this goal without affecting programs and services through overall decreases in
maintenance and operating expenses, project deferrals, and fewer capital equipment
purchases. In addition, a managed hiring freeze was put in place which allowed the filling
of only the most necessary positions. The close of 1991-92 showed the results, with an
excess of revenues over expenditures in all fund types except debt service.
Spending on all City program totaled $77.1 million, a decrease of $14.7 million from
1991-92. This decrease is primarily due to the $21 million decrease in capital projects
spending and higher Enterprise Fund expenditures of $3.6 million. Revenues for 1991-92
totaled $81.8 million, a decrease of about $17 million or 17% less than last year's total of
$98.9 million. This decrease is directly linked to several factors including: recessionary
influences on taxes and construction fees, diversion of revenues to the state and county,
fewer building permits resulting in less funding for capital projects, and the prior year's sale
of assessment district bonds for a major road improvement. These decreases were partially
higher sewer and water revenues.
Carlsbad is entering 1992-93 in a fiscally sound position due to City Council's rapid
response to decreasing revenues as a result of the recession and the continuing low level
of development activity in 1991-92. The general outlook for the next five years will be
challenging, matching a slower tax base growth with financial requirements to meet the
demand for services.
offset by increased receipt of funds from the sale of forfeited crime-related property and
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The following report summarizes the revenues and expenditures (or expenses) for the Cir
of Carlsbad for the fiscal year ended June 30, 1992.
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Revenue from All Fund TvDes
(in thousands) -
1991-92 over % 1991-92 1990-91 [under) 1990-91 Change
General Fund $39,925 $40,535 $(610) (1.5)Oh Special Revenue Funds 6,571 4,490 2,081 46.3 Debt Service Funds 2,461 1,228 1,233 100.4 Capital Projects Funds 9,483 31,118 (21,635) (69.5) Enterprise Funds' 16,723 15,442 1,281 8.3 Internal Service Funds' 6,640 6,137 503 8.2 TOTAL REVENUES $81.803 $98,950 $(17,147) (17.31%
(*) Includes operating and non-operating revenues T
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I 1991-92 1990-91 (under1 1990-91 Change
General Fund $39,230 $38,356 $874 2.3%
Debt Service Funds 3,975 3,471 504 14.5
Capital Projects Funds 6,455 27,497 (2 1,042) (76.5)
Enterprise Funds' 17,064 13,435 3,629 27.0
Internal Service Funds' 6,083 5,441 642 11.8
TOTAL EXPENDITURES $77,132 $91,875 $ ( 14.743 1
('I Includes operating and non-operating expenses 1 G-eneral Governmental Functions
Expenditures (or Expenses) All Fund Twes
1991-92 over YO
Special Revenue Funds 4,325 3,675 650 17.7 I
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( 1 6.0) YO
The General Governmental function includes the operations of the General, Specia
Governmental funds totaled $58.4 million, a decrease of $18.9 million from 1990-91
expenditures totaled $54 million, down $19 million from last year. A brief look at thes
numbers on a fund-by-fund basis is shown below.
Revenue, Debt Service and Capital Projects funds. During 1991-92 revenue from a1
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General Fund
The City's General Fund is used to record all revenues and expenditures not specifically
restricted by law or Council policy. Major sources of revenue 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.
The following table summarizes General Fund revenues by major category for 1991 -92 and
1990-91:
General Fund Revenues
(in thousands)
1991-92 over YO
1991 -92 1990-91 (under) 1990-91 Change
Taxes $26,424 $26,528 $ (104) (3.9)%
State Subventions 2,489 2,606 (117) (4.5)
Fines & Forfeitures 31 3 516 (203) (39.3)
Interest Income 2,152 2,162 (10) (0.5)
Licenses & Permits 1,729 2,240 (511) (22.8)
Charges for Services 4,563 3,468 1,095 31.6
Other 2,255 3.015 (760) (25.2)
TOTAL $39,925 $40,535 $(610] (1 .5)%
In 1991-92 the City of Carlsbad strongly felt the effects of the recession in its General Fund
revenues which were down by $610,000 compared to 1990-91 revenues of $40.5 million.
Budgeted General Fund revenues for 1991-92 were $43.8 million while actual receipts
were $39.9 million, $3.9 million below budget. This change is due primarily to the
following factors:
ProDertv Tax Revenue - $13.5 million
Although property taxes increased $792,000 over 1990-91 due to a continued
increase in the secured property tax base, property tax receipts were $1 million
less than originally budgeted. A moderate increase of 6% in property taxes was
disappointing when compared to past years' double-digit increases.
Recessionary influences affected the value of new construction and resales along
with slowing the rate of development. However, net assessed valuation rose from $5.5 billion in 1990-91 to $5.9 billion in 1991-92, an 8% increase,
Sales Tax Revenue - $8.7 million
Sales tax revenue fell $700,000 which is about 7.5% less than 1990-91, and
$1.8 million lower than budgeted. Fewer purchases of automobiles and
gasoline, building materials, and general merchandise contributed to the
decrease in sales tax revenues, although the demand for food services, home
furnishings, and appliances continued to rise.
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Vehicle License Fee Revenue - $2.1 million
Revenue from vehicle license fees decreased $40,000 this year primarily due
the decrease in new car sales. The fee is set and collected by the Sta
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Department of Motor Vehicles.
Transient Occupancy Tax Revenue - $3.1 million
Transient occupancy tax (hotel room tax) revenues declined by $232,000 1
1991-92, down 7%. The decrease in TOT revenues reflects the gener
economy's lower available discretionary income and reduced rates offered t
many of the hotels and motels within the City.
DeveloDment Related Revenues - $3.7 million
In spite of slowing construction activity caused by the declining economy, tl
development community continues to process plans and applications
anticipation of further growth in the future. Revenue in 1991-92 fro1
development related fees and permits totaled $3.7 million, up $136,000 or 4C
over last year. The primary decline in development-related revenues were i
construction permits and fees, offset by higher planning and engineering fee I
Other Revenue - $2.3 million The $760,000 decrease in 1991-92 other revenue is attributable to last year
significant and unusual revenues including the Public Employees Retiremer
System (PEW) reimbursement and special developer fees to support parks an
fie stations in south Carlsbad. 1
Total General Fund expenditures are summarized in the table below:
General Fund Expenditures
(in thousands)
1991-92 over Oh
Categorv 1991 -92 1990-91 (under) 1990-91 Change
General Government $5,069 $ 5,324 $ (255) (4.8) To
Public Safety 15,647 15,183 464 3.1
Community Development 7,324 6,722 602 9.0
Maintenance & Utilities 4,229 4.042 187 - 4.6
TOTAL $39,230 $38,356 $874 2.3%
The City of Carlsbad adapted to the recession and corresponding declining revenues bj
decreasing expenditures. In order to insure that the City would end the year balanced
several actions were taken. All departments voluntarily reduced their budgets by 10% anc
an informal hold was put on all but the most necessary hiring. Budget transfers for nev
programs or equipment were held to a minimum and some projects, programs and capita
equipment purchases were deferred. Through this effort, the City was able to hold it:
General Fund expenditures down to $39.2 million, although over $46 million wa:
budgeted. This equates to a 2.3% or $874,000 increase over 1990-91 expenditures. Other
significant changes in expenditures were as follows:
' Culture & Recreation 6,961 7,085 (1 24) (1 -8)
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0 Public Safety
Spending on public safety programs totaled $15.6 million, up $464,000 or 3%
over 1990-91. The continued rise in firefighter and police officers salaries
coupled with full year San Diego County prisoner booking fees were offset by lowered maintenance and operating costs. In spite of lower General Fund revenues, all safety service programs continue to be fully staffed.
. Communitv Development
Community Development program spending increased $602,000 or about 9%.
The increase reflects one-time costs related to the General Plan update, higher
general liability insurance costs, the addition of two former Carlsbad Municipal
Water District engineering inspectors to the City engineering staff, and full year
staffing for the Geographic Information System (GIS) manager and associated
software costs.
0 Culture and Recreation
Culture and Recreation spending dropped $124,000 or almost 2% from 1990-
91, primarily due to cost-reduction measures in park operations and fee-
supported recreation programs.
0 Maintenance and Utilities
Maintenance and Utilities increased $1 87,000 or 4.6% over 1990-91 because
of higher general liability insurance costs and more street repair expenditures,
partially offset by lower capital equipment purchases.
0 General Goveniment
Spending in general government and administrative programs decreased by
$255,000, almost 5% fiom 1990-91. Capital equipment purchases decreased
and specific 1990-91 expenditures were not repeated in 1991-92 including a
litigated employee settlement and legal expenses related to a utility company
expansion.
Special Revenue Funds
The City's Special Revenue Funds, which account for the collection and use of special or
restricted revenues, received $6.6 million in total revenue in 1991-92. This is an increase
of $2.1 million or about 46% over last year. This increase is primarily due to the dramatic
increase in police asset forfeiture funds from the sale of seized assets related to drug
activity. Other revenue increases were shown in collections of special charges for the
special benefit districts for lighting and landscaping services and additional federal funding
of the low and moderate income housing programs.
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Special Revenue Funds
Revenues
(in thousands)
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1991-92 over Oh
Category 1991-92 1990-91 (under) 1990-91 Change
Taxes $ 317 $322 $ (5) (1.6)%
Intergovernmental 4,176 2,249 1,927 85.7
Charges for Services 1,617 1,303 314 24.1
Interest Income 341 285 56 19.6
Other 120 331 (211) (63.7)
TOTAL $6,571 $4.490 $2,081 46.3%
Expenditures from the Special Revenue Funds support a wide variety of program an
projects. Some of the major uses of funds include:
Public works programs such as street lighting, landscaping services for strec
trees and median maintenance.
Cultural programs, including grants from the California Library Services Act an
California Arts Council, and the Civic Arts program.
Special programs such as the Police Asset Forfeiture program, Bilingual Libra
program, and Adult Literacy program.
Welfare programs such as the HUD-sponsored Carlsbad Housing Authod
rental assistance program and Senior Nutrition program.
Special Revenue Funds
Expenditures
(in thousands)
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1991-92 Over Oh
CateRory 1991-92 1990-91 (under) 1990-91 Change
General Government $ 440 $ 93 $ 347 3 73.1 O/o
Public Works 1,258 1,151 107 9.3
Welfare 2,287 2,078 209 10.1
Culture and Recreation 340 353 113) (3.7)
TOTAL $4.325 $3.675 $650
Spending in Special Revenue Funds totaled $4.3 million in 1991-92, an increase
$650,000 or about 18% above 1990-91. Increased expenditures in the general governme
category reflect major capital purchases from the asset forfeiture fund, higher expenditur
in lighting and landscaping services are shown in the public works category, whi
17.7%
i increased HUD housing allocations are shown under welfare,
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Debt Service Funds
The City's Debt Service funds record the payment of interest and principal on the current
portion of outstanding debt. At June 30, 1992, the total debt payable, excluding
obligations under capital leases, from non-enterprise sources was $29.5 million, comprised
of Parking Authority and Building Authority bonds, Hosp Grove Cerlificates of
Participation, College Boulevard 1915 Act Assessment District bond issue and
Redevelopment Tax Allocation Bonds.
Debt Service Funds
Revenues
(in thousands)
1991 -92 over Oh
Category 1991 -92 1990-91 (under) 1990-91 Change
Taxes $ 2,116 $ 905 $1,211 133.8%
Interest 345 323 22 - 6.8
TOTAL $2.461 $1.228 $1,233 100.4%
Debt Service revenues for 1991-92 totaled $2.5 million, an increase of $1.2 million over
1990-92. The increase is due to the transfer of redevelopment tax increment receipts from
the capital projects fund to debt service funds.
Debt Service Funds
Expenditures
(in thousands)
1991-92 over YO
Category 1991 -92 1990-91 [under) 1990-91 ChanEe
Principal $1,175 $1,110 $65 5.9%
Interest 2.800 2,361 439 18.6
TOTAL $3,975 $3.471 $504 14.5%
Debt related expenditures rose in 1991-92 because of the transfer of redevelopment interest
on city loans to debt service funds. This was the final year of payment of general
obligation bonds for sewer improvements and downtown library construction. No general
obligation bonds are outstanding at June 30, 1992.
CaDital Projects 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).
Capital projects funds for the City of Carlsbad include those supported by the City's public
facilities fees, community facilities district (Mello-Roos) taxes, park in-lieu (park
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' development) fees, drainage fees, traffic impact fees, bridge and thoroughfare district fee
gas tax funds, county sales tax funds, and general funds earmarked for capital purposes
the Capital Construction Fund. The capital projects supported by the City's Redevelopme
Agency are also included in this ~oup. I
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Capital Projects Funds
Revenues
(in thousands)
1991-92 Over 010
Catenory 1991 -92 1990-91 (under) 1990-91 Change
Taxes $ 3,228 $ 2,247 $ 981 43.7%
Intergovernmental 1,911 3,156 (1,245) (39.4)
Charges for Services 1,580 5,999 (4,419) (73.7)
Other 776 16.747 (15.971) (95.4)
Interest 1,988 2,969 (981) (33.0)
(69.5 ) % 1 TOTAL $ 9,483 $31,118 $(21,635)
Revenue in the capital projects funds totaled $9.5 million, down $21.6 million from tl
1990-91 total of $31.1 million. Much of the decrease is attributable to last year's $1
million street construction assessment district bond issue and final payment on a larg
federal grant. The downturn in new building construction is apparent by the $4.4 millio
decrease in charges for services to developers. First year tax collections from Communit
Facilities District (CFD) No. 1, a special tax on developable vacant land, added $2.
million. However, recategorizing redevelopment tax increment revenue from capit;
projects to debt service funds offset CFD tax revenue by $1.2 million. I
Capital Projects Funds
Expenditures
(in thousands)
e
1991-92 over YO
Category 1991 -92 1990-91 (under) 1990-91 Change
General Government $ 815 $ 296 $ 519 175.3%
Capital Projects 5,640 27,201 (21.561) J79.3)
TOTAL, $6.455 $27,497 $(21,0421 J76.5)%
Spending on capital projects totaled $6.5 million, a decrease of $21 million or 76.5% les
than last year. This decrease is due to a $14 million decline in street improvements funde
by assessment districts and deferring some capital projects because of fewer develope
receipts. Fiscal year 1991-92 represents the eighth year of the City's major constructiol
effort which has provided more than $114 million in improvements. Projects planned fo
1992-93 could carry this trend into a ninth year with $32 million of new capital project
budgeted in the new year. The City Council continues to set a high priority on thi
construction of quality infrastructure improvements.
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Some of the key capital projects under construction or completed during this year include:
Palomar hart Road and El Camino Real -The engineering and design of major
street improvements to this vital circulation link was completed in 1991 -92 with
construction scheduled for early 1993. The project includes intersection
improvements, road widening, bicycle lanes, and waterline expansion. These
improvements will upgrade a major circulation system through the industrial-
commercial corridor and is a joint effort of Carlsbad and the neighboring cities
of Vista and San Marcos.
0 Freewav Interchannes - Major expansion of the three Interstate 5 freeway
interchanges will provide improved circulation at critical connection points to
City streets. The Palomar Airport Road/I-5 interchange, built in cooperation with the state transportation agency (CALTRANS), is scheduled for completion
in 1993. Preliminary design work continues on the La Costa Avenue and
Poinsettia Avenue freeway interchanges.
El Camino Real Road Wideninn and Road Medians - Improvements to this main
north/south City thoroughfare have improved citywide traffic circulation. In
order to limit traffic disruptions and achieve cost savings, Carlsbad Municipal
Water District improvements and road widening were made concurrently.
0 South Carlsbad Library - Architectural design has been completed on the 64,000
square foot building, which will become the City‘s main library. Originally
scheduled to open in 1992, the sale of bonds for library construction has been
postponed. Although construction funds could be made available, the
recession’s effect on city operating revenues has decreased available funds for
operation of the library.
Alta Mira Park - The City acquired 30 acres of land in the southwest quadrant
of Carlsbad. A master plan for phased development of Alta Mha Park was
developed and design work on Phase I will begin in late 1992.
Carrillo Ranch - The renovation of the 1930’s cattle ranch of actor Leo Carrillo
began in 1991-92 using private donations and state grant funds. As part of the
park system, the ranch will preserve a unique City heritage and has been
designated a state historical site.
Split Pavilion - Part of the downtown rehabilitation program, the Split Pavilion
plaza is a focal point at the edge of the Pacific Ocean. Reaction to the sculpture
is mixed and it continues to energize artistic controversy.
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I Entervrke ODera tiOnS
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The City of Carlsbad manages water, sewer, solid waste, and the proposed golf course a5
Enterprise Fund operations. The Carlsbad Municipal Water District (CMWD), establishec
as a subsidiary district to the City in January 1990, is included. CMWD and Ciq
operations were merged in 1991-92, with all district positions joining City employment.
An enterprise fund is one where most or all of the costs involved are supported by usel
fees. within these funds the City uses many of the accounting practices applicable tc
commercial business including the recording of depreciation on fixed assets and thc
allocation of overhead costs from support senrices. User fees are set on an annual basi!
to cover both operating costs and debt service needs.
Enterprise Funds
Total Operating and Non-Operating Revenues
(in thousands)
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1991-92 over TO
Category 1991-92 1990-91 (under) 1990-91 Channe
Golf Course $ 61 $ 108 $ (47) (433%
Sewer 5,070 3,899 1,171 30.0
Solid Waste 170 37 133 359.5
CMWD 11 A22 11.398 24 0.2 TOTAL $16,723 $15,442 $1,281 8.3%
Revenue in the enterprise funds totaled $16.7 million, up $1.3 million over 1990-91, wit
$1.2 million of the increase attributable to the sewer fund. Consistent with the 199
sewer study, sewer rates were raised to match expenses and to compensate for pa:
operating deficits. Inclining block rate water charges encouraged and rewarded watc
conservation resulting in only a small water revenue increase.
Enterprise Funds
Total Operating and Non-Operating Expenses
(in thousands)
1991-92 over 010
Category - 1991 -92 1990-91 (under) 1990-91 Change
Golf Course $ -0- $ -0- $ -0- -0- vo
Sewer 6,513 3,593 2,920 81.3
Solid Waste 101 20 81 405.0
CMWD 10.450 9,822 628 6.4
TOTAL $17,064 $13.435 $3.629 27.0%
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Expenses in the Enterprise Funds totaled $17.1 million, up $3.6 million over 1990-91.
Since all golf course payments were directly related to the construction of the proposed
golf course, all are included in construction in progress. Higher sewer plant charges,
depreciation, and bad debt expense added to sewer costs. In addition, the Calavera Hills
Sewer Reclamation Facility was written off, increasing sewer expenses by $2.4 million.
The facility was built in the early 1980’s to partially process neighborhood sewage and had
never been activated. Consumer water conservation enabled CMWD to keep increased
water purchase costs to 3% at the same time the price of water charged by state and
county water authorities increased 11%. During this same period the number of accounts
provided with water and/or sewer service grew by only 1%, to 17,167.
In 1989, the City joined with three other agencies to sell $33.5 million of sewer revenue
bonds. These bond funds, along with funding from two additional agencies, are currently
financing the expansion of the Encina Wastewater Facility and should provide sufficient
wastewater treatment capacity to the year 2005. Carlsbad‘s portion of the outstanding
bonds is $12.7 million.
Internal Service Fun&
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 claims for 1991-92 amounted to $706,000 compared
to $1.2 million in 1990-91, a decrease of $502,000 or 42%. The decrease is attributable
to unusually high charges experienced on a single claim in 1990-91. The estimated claims
payable at year-end were $1.4 million, no change from 1990-91. Total fund equity at June
30, 1992 is $684,000.
The General Liability Self-Insurance Fund was established near the end of 1980-81. Claims
expense for 1991-92 totaled $990,000, up $707,000 from the 1990-91 total of $282,000.
Some of the increase is due to N1 year premiums for the California Municipal Insurance
Authority covering liability claims over $500,000. The estimated claims payable at year-
end were $644,000, up $241,000. Fund equity totaled $2 million at June 30, 1992.
OTHER INTERNAL SERVICE FUNDS
The City operates a central vehicle maintenance program servicing and replacing both the
rolling stock and small machinery. Higher depreciation charges brought operating costs
up $137,000 over last year to a total of $1.8 million. Total fund equity at year-end was
$4.1 million.
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' The City also operates a health insurance internal service fund for collecting premiurr
paying the insurance carrier, and holding reserve funds. At June 30, 1992, total heal
insurance fund equity totaled $1.3 million.
The Citfs Data Processing internal service fund collects revenues and expenses related
the providing of data processing services to the City. At year-end, fund equity totaled $1
million.
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The City uses Agency Funds to account for assets held by the City for other individua
entities or governments. Typically these funds relate to contractors' cash performan
bonds, employee payroll deductions, or deferred compensation accounts.
The City held a total of $18.9 million in Agency Funds as of June 30, 1992, compared
$13.7 million at the end of 1990-91. This increase of $5.2 million is due to the depo
of an additional $1.9 million into the City's deferred compensation plans, $1.7 million
pension surplus funds pending outcome of state litigation, and an increase of $852,000
Assessment District bond reserves and funds held for future bond payments. 8 Cash Management
The City Treasurer is charged with the responsibility of safeguarding the City's asse
receiving all payments due the City and investing all inactive funds. During this year t
City Treasurer earned about $7.6 million in interest on investments in all fund types frc
instruments yielding up to 8.7%, compared to earnings of $7.7 million during 1990-5
Funds are invested in various types of instruments as shown below. At June 30, 1992, t
Treasurer had 100% of all available funds invested. The City's total portfolio at year-e
was $127.2 million.
Below is a summary of cash and investments outstanding as of June 30, 1992:
Amount Invested
Interest Rates (in millions)
Cash 0.00 - 3.59 $ 1.4
Other Deposits 5.46 - 8.25 57.2
Federal Agency Notes 5.60 - 8.70 17.0
Treasury Issues 5.66 - 8.14 11.3
Corporate Notes 5.80 - 8.66 30.4
$127.2 Miscellaneous Investments 3.10 - 5.15 9.9
As required by State law, the City Council adopted a comprehensive investment pol
specifying the type and term of City investments. This policy has allowed the C
Treasurer flexibility without endangering the safety, liquidity or yield of the total portfol
17
Gann Limit - Amropriations Subiect to Limit
In 1979, Proposition 4, the "Gann" initiative, was passed. The purpose of this law is to
limit government spending by putting a cap on the total proceeds of taxes that may be
appropriated each year. This limit is increased each year through a formula that takes into
consideration changes in the Consumer Price Index and state per-capita income. When a
city reaches this limit excess tax revenue must be returned to the State or citizens through
a process of refunds, rebates, or other means that may be defined at that time. The Gann
limit for the City of Carlsbad has increased steadily since 1979 and still provides the City
with a comfortable operating margin.
In 1991-92 state law allowed the recalculation of the City's limit with new inflation factors.
Using population growth in Carlsbad and Carlsbad's growth in non-residential new
construction allowed the Gann limit for 1991-92 to increase to $65 million. Appropriations
of "proceeds of taxes" was only $34.4 million, thus allowing the City a healthy margin
$30.6 million.
CITY OF CARLSBAD PROP 4 SPENDING LIMIT
VS. APPROPRIATION OF PROCEEDS OF TAXES
LAST TEN YEARS
DOLIARS IN MILLIONS
70
60
50
40
30
20
lo 0 I
1983 1984 1985 1988 1987 1988 1989 1990 1991 1992
FISCAL YEAR
WAPPROP OF TAXES SPENDING UMIT
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Economic Outlook N
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The general outlook for Carlsbad over the next few years is hazy due to the linger5
recession and the threat of additional State actions which may further reduce the Cit
revenue base. Current state and regional economic forecasts show a slow recovery wi
continued depressed levels of construction spending over the next several years, especial
in the commercial/industrial area. A moderate and sustained national recovery, and
pickup in California homebuilding, which had been counted upon to stabilize the Califorr
economy, have failed to materialize.
As demonstrated during the past year, the recession has dramatically impacted the Ciq
ability to improve or increase programs provided to its citizens despite the continui
demand for such services. Spending in the General Fund was reduced from origina
budgeted amounts by $5.4 million, and capital equipment outlay was essentia
eliminated. Our capital improvement program budgeted $50 million in expenditures 1
this time, the 1992-93 capital program calls for a number of deferred projects. Despite t
setbacks caused by the recession and the State's budget balancing strategies, the long-tei
outlook for Carlsbad is still very optimistic.
The City's long range capital improvement program anticipates the construction of mc
than $425 million in improvements between now and buildout. This program includes nr
parks, libraries, fire stations, streets, water and sewer lines, and other facilities to maintz
the level of service offered to the Carlsbad resident. This aggressive construction progr;
will place a burden on the operating budget that must be managed through care.
scheduling to match demands with resources. Uncontrolled demand would easily outpz
the City's ability to pay for services.
The expansion of retail sales facilities, the addition of new auto dealerships, major disco1
warehouse outlet, several small commercial centers, and continued plans for t
construction of a group of major shopping centers as well as the construction of a ma
hotel in southern Carlsbad are expected to provide the much needed tax base to finar
the growing service needs. Further, future commerciaVindustrial development in t
Palomar Airport Industrial Park area will add to Carlsbad's economic health.
The City's Growth Management Program holds the key to the timing of many of t
developments that will support the City through fees and taxes. This program is design
to insure that new development occurs in conjunction with careful planning
infrastructure and service needs. The long range financing program addresses the fundi
needs for $300 million of the City's capital improvement program, including more th
$150 million in street improvements and $120 million of school district financj
requirements.
The City continues to support its tourist industry with financial support to the Chamber
Commerce Convention and Visitors Bureau. Realizing that the Pacific Ocean beaches p
an important role, Council appropriated funds to keep the state beach parking free to
1991-92, however only $7 million was spent, Since sufficient funds are not available
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The update of the City's entire General Plan began in 1991-92 With town hall meetings and
community forums held to receive input from all sectors of the public. The public review
addition, City staff completed a comprehensive fiscal analysis of the Carlsbad General Plan
which forecasts the financial stability of the City. This program provides a tool to evaluate
financial implications of current and future City policies and decisions. Staff will be
updating this program in conjunction with the General Plan and presenting the results to
Council in the future.
Certificate of Achievement for Excellence in Finanad Re~orting
The Govenunent Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Carlsbad for its comprehensive annual financial report for the fiscal year ended June 30,
1991. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of state and local government
financial reports. In order to be awarded a Certificate of Achievement, a governmental unit
report, whose contents conform to program standards. Such reports must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received
the GFOA certificate since 1986. We believe our current report continues to conform to
the Certificate of Achievement Program requirements.
Acknowlednments
This report has been a joint effort by many people from many different areas of
responsibility. The dedicated efforts of Cheryl Allen, Assistant Finance Director, and all of
the accounting staff, deserve full credit for the preparation and contents of this report. We
appreciate Darren Huennekens and Brian Roos of KPMG Peat Marwick for the professional
way in which the audit of this financial report was conducted. It has been a pleasure to
work with the KPMG Peat Marwick staff throughout this period.
Respectfully submitted,
continues with a revised General Plan expected to come before Council in 1993. In
must publish an easily readable and efficiently organized comprehensive annual financial
&-
USA -BRAND
Finance Director
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FAUBRW
CAMP ENDLETON
RAMW
NATlolvAL UTY
i
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 30,1991
A Certificate of Achiewement 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.
bii!&tiLe
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CmOFcARIsaAD I
t ELECIEDClTYOFFIcLAIs
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Claude k Lewis, Mayor
Ann J. Kulchin, Mayor Pro Tem Eric Larson, Council Member
Julianne Nygaard, Council Member
Margaret Stanton, Council Member
Aletha L Rautenkranz, C3y Clerk
James M. Stanton, City Treasurer 1 ADMINETRATION AND DEPARTMENT HEADS
Raymond R Patchett, City Manager
Frank Mannen, Assistant City Manager James F. Elliott, Financial Management Director Martin Orenyak, C0xn.mun.i~ Development Director I Ron Ball, City Attorney
Ralph Anderson, Utilities & Maintenance Director David Bradstreet, Parks and Recreation Director Ruth Fletcher, Purchasing Officer
Lloyd Hubbs, City Engineer
Ann Jensen, Human Resources Director
Clifford Lange, Library Director James Thompson, Fire chief
Robert Vales, Police chief
CHAIRPERSONS, COMMISSIONS AND BOARDS
Michael HoMer, Phnning D' rrector
Sue Ladouceur Arts Commission
Donald E. Jackson
M& Cap Building Authority
Stuart Turgel Cable Television Foundation
Julie Baker Child Care Commission
Clarence Schlehuk
Bailey Noble Design Review Board
Marjorie HowardJones Historic Preservation Commission
Belynn Gonzales
Seem Trigas Library Board Dick Goodman Parking Authority
David Castner Camille Mitkevich Personnel Board Tom Erwin Planning Commission
George Heard Senior Citizen Commission Dennis Brandmeyer Sister City Committee James Stachoviak Traffic Safety Commission
Richard Allen John Henley Water Commission
Beach Erosion Committee
Citizens Committee to Study Growth
Housing and Redevelopment Committee
Parks and Recreation Commission
Underground Utility Advisoly Committee
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L_l__L_,,_-,-,___,,_____
24
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KPMG Peat Marwick 1
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Certified Public Accountants
750 B Street
San Diego CA 92101
i IndeDende nt Auditors' Report
The Honorable Members of City Council
City of Carlsbad, California:
We have audited the general purpose financial statements of the Ci
Carlsbad, California, as of and for the year ended June 30, 1992, as lis
the accompanying table of contents. These general purpose fin<
statements are the responsibility of the City's management.
responsibility is to express an opinion on these general purpose fin<
statements based on our audit.
We conducted our audit in accordance with generally accepted aul
standards. Those standards require that we plan and perform the aud
obtain reasonable assurance about whether the general purpose fin
statements are free of material misstatement. An audit includes examinii
a test basis, evidence supporting the amounts and disclosures in the g
purpose financial statements. An audit also includes assessing the acco
principles used and significant estimates made by management, as we
evaluating the overall financial statement presentation. We believe thi
audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to
present fairly, in all material respects, the financial position of thc
of Carlsbad, California, as of June 30, 1992, and the results o
operations and the cash flows of its proprietary funds for the year then
in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the g
purpose financial statements taken as a whole. The combining, indi
fund, and individual account group financial statements and schedules
in the accompanying table of contents are presented for purposes of addi
analysis and are not a required part of the general purpose fin
statements of the City of Carlsbad, California. Such information has
subjected to the auditing procedures applied in the audit of the g
purpose financial statements and, in our opinion, is fairly stated i
material respects in relation to the general purpose financial stat
taken as a whole.
KfNG P&d,
October 9, 1992
Llemtei F m of 27 1 Kiynve c Pea Varm ck Goe ce er
CITY OF CARLSBAD
Combined Balance Sheet
All Fund Types and Account Groups
June 30, 1992
Governmental Fund Types
Special Debt Capital Assets and Other Debits Notes General Revenue Service Projects
Cash and investments 4 $ 10,350,930 6,471,040 4,862,787 39,334,317
Deferred compensation
Receivables :
- - - - investments 8
Loans - - - 164,488
1,024 , 177 17,846 3 25 11 , 263 Taxes
Accounts, net 66 , 140 67,377 - 28,674
Accrued interest 418,495 90 , 808 86,415 506 , 772 Due from other funds 13 627,912 - - -
Due from other
Advances to other
Inventory 33 , 358 - - -
Prepaid expenditures 43,500 165,881 - -
Restricted assets:
governments - 17,143 - 354 , 154
2,493,000 funds 12 10 , 340 , 785 - -
Cash and - - - - inve s tmen t s
Property, plant and
Amount available in
Amount to be
4
Accrued interest - - - -
- - - - equipment , net 5
debt service funds - - - -
provided for
retirement of
general long- term debt - - - -
Total assets and
other debits $ 22.905.297 6.994,583 4.949.527 42.728.180
See accompanying notes to combined financial statements.
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Proprietary Fiduciary
Fund Tvpes Fund Tvpe Account Groups Tot4
Internal General Long- (Memor,
Enterprise Service Aaency Fixed Assets Term Debt - On1
31,947,353 8,833,881 14,114,913 - - 115,915
- - 4,712,077 - - 4,712
- - 164 - - - 1,053
- 2 , 408
591,844 145 , 208 50,653 - - 1,89C - - 802 174,781 - -
- 371
- - - - 12,833 - 55E
- 20 s
- - - - -
2,239,462 6,446 - -
- - - -
-
443,511 81,631 - - - - - -
6,584,168 - - - - 6,584 - 13
162,568
- - - - 4 , 904,027 4,90b
- - - 13,072
96,891,191 2,641,150 - 63,036 , 204 -
- - - - 25 -641,595 25.641
138.885.382 11.708.316 18.877.643 63.036.204 30.545.622 340,63C
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CITY OF CARLSBAD
Combined Balance Sheet, Continued
All Fund Types and Account Groups
June 30, 1992
Governmental Fund Tvpes
Special Debt Capital
Liabilities Notes General Revenue Service Proiects
Accounts payable $ 958,557 80,156 2,000 265 y 478 Accrued wages payable 1,804 , 655 54,603 - 5 y 182
Accrued interest payable 78 , 334 - - -
Due to other funds 13 - 283,143 - 344 , 769
Advances from other funds 12 - - - 12,833,785
Due to other governments - 33,898 - -
Estimated claims payable - - - -
Asses men t s payab le
Current portion of
Deposits payable - - - 469,575
Deferred compensation
Current 1 iab i 1 i ties
- - - -
- - - long-term debt 11 -
- - - - payable 8
payable from
restricted assets -
accrued interest - - - payab 1 e -
Bonds payable 11 - Deferred revenue 3 y 254 , 678 - 43 , 500 160 , 246
Special assessment debt
- - -
with governmental
commitment 11 - -
capital leases 9,11 -
participation 11 -
agreement 11 -
- -
Obligations under
Certificates of
Installment purchase
- - -
- - -
- - -
Total liabilities $ 6,096,224 451.800 45.500 14,079,035
See accompanying notes to combined financial statements.
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Proprietary Fiduciary
Fund Tvpes Fund TYDe Account Grows To ti
Internal General Long- (Memori
Enterurise Service Aaencv Fixed Assets Term Debt - On17
915 , 280 111,376 8,660 - - 2,341
284,605 46,477 - - - 2,195 - - 221 - 802
- - - 12,833 - - 1,731,492 - - 1,765
- - 4,527,533 - - 4,527
- - 685 685,000 - -
238 , 944 - 7,897,881 - - 8,606
- - 4,712,077 - - 4,712
142,734 - -
174,781 - - -
- -
- 2,188,889 - - - 2,188
- 35 1 - - 5,529 - - - - 12,960,000 12,960
351,855 - - -
2,070,778 - -
- - - - 8 , 465,000 8,465
- - - - 1,030,622 1,03C
11,022,770 - - - 8,090,000 19,112
12.689 12.689.800 - - - - 1 28,576.547 2.346.742 18,877,643 - 30.545.622 101.01s
31 (Contj
CITY OF CARLSBAD
Combined Balance Sheet, Continued
All Fund Types and Account Groups
June 30, 1992
Governmental Fund Types
Special Debt Capital
Notes General Revenue Service Projects
Total liabilities,
brought E orward $ 6.096.224 451.800 45.500 14.079.035
Fund Equity and
Other Credits
Investment in general
Contributed capital 15
Fund balance :
fixed assets - - - - - - - -
Reserved 14 7,995,039 2,459,327 4,904,027 4,487,150
Un r e s e rved 14 8,814,034 4,083,456 - 24,161,995
Reserved 14
Unreserved 14
Total fund equity
Retained earnings : - - - - - - - -
and other credits 16.809.073 6,542,783 4.904.027 28.649.145
Total liabilities,
fund equity and
other credits $ 22.905.297 6.994.583 4.949.527 42.728.180
See accompanying notes to combined financial statements.
32
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Proprietary Fiduciary
Fund Tpues Fund TvDe Account Grouus Tota Internal General Long- (Mernora
En t e ru r i s e Service Agencv Fixed Assets Term Debt onlv
28.576.547 2.346.742 18.877.643 - 30.545.622 101.019,
- - - 63,036,204 - 63,036 4
75,487,426 5,571,402 - - - 81,058,
- - - - - 19,845, - - - - - 37,059,
3,354,383 - - - - 3,354,
31.46 7.026 3.790. 172 - - - 35.257.
110.308.835 9.36 1.574 - 63.036.204 - 239.611,
138.885.38 2 11,708.316 18.877.643 63.036.204 30.545.622 340.630
33
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and
Changes in Fund Balance - All Governmental Fund Types
For the year ended June 30, 1992
General
Taxes $ 26,424,175
Licenses and permits 1,729,058
Intergovernmental -
Stat e subvent ions 2,489,451 Charges for services 4,562,688
Fines and forfeits 312,984
Interest income 2,152,267
Interdepartmental services 1 , 916,323
Miscellaneous 338.212
Total revenues 39.925.16 1
Revenues :
Contributions from property owners -
Expenditures:
Current :
General government 5 , 06 9 , 405
Public safety 15,647,112
Community development 7,323,586 Pub 1 ic works -
We1 f are -
Maintenance and utilities 4,228,730
Culture and recreation 6,960,900
Capital outlay -
Principal retirement -
Interest and fiscal charges -
Debt service :
Total expenditures 39,229.733
Excess (deficiency) of revenues over expenditures 695.428
Other financing sources (uses):
Operating transfers in 5,394,102
Operating transfers out (534.682)
Total other financing sources (uses) 4.859.420
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses 5,554,848
Fund balance at beginning of year, as adjusted (note.21) 12,205,755
Residual equity transfers in 9,243
Residual equity transfers out (960.773)
Fund balance at end of year
See accompanying notes to combined financial statements.
$ 16.809.073
34
a
PARKING AUTHORITY OF THE CITY OF CARLSBAD
Schedule of Insurance Coverage
June 30, 1992
e
Insurance coverage maintained by the City of Carlsbad with the Auth
listed as additional insured at June 30, 1992 includes: a
Amount of
TyDe 0 f Coverage Cove raae - Term
All risk including valuable papers
and rental income $ 36,615,500 10/01/91 to lo/
Honesty Blanket Bond 1,500,000 04/06/92 to 041
Equipment floater 517,400 10/01/91 to lo/ e
Effective January 1, 1986, the Authority has not been covered undl liability insurance policy but has been included under the City of Carlsl
self-insurance program. e
/
a
a
e
a
See accompanying independent auditors' report.
13 a
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance
All Governmental Fund Types
For the year ended June 30, 1992
e
e
Tota:
Debt (Memora
General Service onlv
Revenues : 111 Lease payments $ 36,000 - 36,0(
In teres t on inves tmen t s 4.807 1.236 6.01
Total revenues 40,807 1,236 42.01
Expenditures: 9 Principal retirement - 30,000 30 ,OC
Interest - 3,000 3,OC
Administrative expenses 4,597 - 4.5s
Total expenditures 4.597 -33.ooo 37,55
e Excess (deficiency) of
revenues over
expenditures 36,210 (31.764) 4.44
Operating transfers in 4,597 32,650 37,24
Other financing sources (uses ) :
(37.24 Operating transfers out (37,247) -
Total other financing sources (uses) (32.650) 32.650 -
Excess of revenues and other a financing sources over
expenditures and other
financing uses 3,560 886 4,44
Fund balance at beginning of year 90.031 19.129 109.20
0 Fund balance at end of year $93,591 i22AQai 113.64
See accompanying notes to combined financial statements.
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I 2.245.414 (1.513.613) 3.028.088 4.455.3'
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Total
Special Debt Capital (Memo ran
Revenue Service Projects Qdd
- - 1,729 ,C
317,673 2,116,142 3 , 228 , 324 32,086 , 3
4,176 , 247 - 1,910,891 6,087,l - - - 2,489,4
1,616,812 - 1,579,724 7,759,2 - - 312,5
340 , 838 345 , 040 1,988,147 4,826,;
1,916,C - - 446,813 446 ,E
119,360 - 329,264 786 .E
6.570.930 2.461.182 9.483.163 58.440.4
-
-
- - -
6,324,6
15,647 , 1 - - 7 , 323,5
1,257,859 - - 1,257,8 - 2 9 287,2
340 , 271 - - 7,301,l - - - 4,228,7 - - 5,639,898 5,639,8
1 , 175 ,O - 1,175,000 - - 2,799.795 - 2.799.7,
4.325.516 3.974.795 6.455.075 53.985, 1'
440 , 115 - 815 , 177 - - - -
2,287,271 -
560 1,714,117 6 , 160 , 374 13 , 269 , l!
(1.227,947) (11.506.524) ( 13.269.11
560 486,170 (5.346.150) -
2,245 , 9 74 (1,027,443) (2,318,062) 4,455,31
4,297,761 5,094,417 31,640,578 53,238,51 932 839,850 172 , 858 1,022,88 I (1.884) (2.797) (846 229) (1.811.68
u 4,904.027 28,642,145 56,905,o:
35
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, 1992
General Fund
Actual on Variance
Budgetary Favo rab 1 e
Budget %as is (Unfavorable)
Revenues :
Taxes $ 29,505,000 26,424,175 (3,080,825)
Licenses and permits 2,185,000 1,729,058 (455,942)
Intergovernmental - - -
(340,546 1 State subventions 2,830,000 2,489,454
Charges for services 4,475,000 4 , 562 , 688 87,688
Fines and forfeits 550 , 000 312,984 (237,016)
Interest income 2,000,000 2,152,267 152 , 267
Interdepartmental services 2,038,000 1,916,323 (121 , 6 77)
Miscellaneous 250 .OOO 338.212 88.212
Total revenues 43.833 .O 00 39.925.161 (3.907.839)
Expenditures:
Current:
General government 7,722,061 5,242,016 2,480,045
Pub 1 ic safety 16,592,947 15,679,674 913 , 273
Community development 8 , 957,296 7,775,736 1,181,560
Public works - - -
Welfare - - -
Culture and recreation 7,515,414 7,002,720 512,694
Maintenance and utilities 5,409,250 5,057,399 351,851
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 46.196.968 40.757.545 5.439.423
Excess (deficiency) of revenues
over expenditures (2.363.96 8) (832.384) 1.531.584
Other financing sources (uses ) :
Operating transfers in 5,394,102 5,394,102 -
Operating transfers out (5 34.682 ) (534.682) -
sources (uses) 4.859.420 4,859,420 -
Total other financing
Excess (deficiency) of
revenues and other financing
sources over expenditures
and other financing uses 2,495,452 4,027,036 1,531,584
Fund balance at beginning of year,
Residual equity transfers in - 9 , 243 9 , 243
Residual equity transfers out - (960.773) (960.773)
Fund balance at end of year $ 14,701.207 15,281,261 580,054
See accompanying notes to combined financial statements.
as adjusted (note 21) 12,205,755 12,205,755 -
36
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Svec ial Revenue Funds Debt Service Funds
Actual on Variance Actual an Variai
Budgetary Favorable Budgetary Favora
Budget Basis (Unfavorable) Budget Basis (Unf avor
360 , 000 317 , 673 (42,327) 1,469,510 1,302,947 (166,56 - - - - - -
2,722,849 4,176,247 1,453,398 - - - - - - - - - - - - 1,795,200 1,616,812 (1 78,388 ) - - - - - -
122,200 337 , 771 215,571 241,300 148,884 (92,41
76.562 119.360 42.798 - - -
5.076.811 6.567.863 1.491.052 1.710.810 1.451.831 (258.9;
- - - - - -
598,622 504,569 94,053 - - -
.c - - - - -
- - - - - -
2,010,247 1,279,428 730,819 - - -
2,468 , 304 2,287 , 943 180 , 361 - - -
674,902 490,837 184,065 - - - - - - - - -
- - - 420,000 420,000 - - - - 1.368.712 1.367.965 74
5.752.075 4.562.777 1.189.298 1.788.712' 1.787.965 74
(675.264) 2.005.08 6 2,680.350 (77,902) (336.134) (258.23
560 560 - 1,125,238 1,125,238 - - - - 1.155.038 1.155.038 -
- (29,800 ) (29,800) 560 560 -
I (674,704) 2,005,646 2,680,350 (107 , 702) (365 , 934) (258 , 23
4,247,328 4,247,328 - 1 , 285,938 1 , 285 , 938 - - 932 932 - 839,850 839,851 - (1.884) (1.884) - (2.797) (2.79
3,572.624 6,252.022 2,679,398 1,178.236 1,757,057 578.82
37 (Con t ii
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and
All Governmental Fund Types, Continued
For the year ended June 30, 1992
Changes in Fund Balance - Budget and Actual (Budgetary Basis)
Total (Memorandum Only)
Actual on Variance
Budgetary Favo rab 1 e
Budget Basis lUnfavorable 1
Revenues :
Taxes $ 31,334,510 28,044,795 (3,289 , 715)
Licenses and permits 2,185,000 1,729,058 (455 , 942)
Intergovernmental 2 , 722,849 4 , 176 , 247 1,453 , 398
2,830,000 2,489,454 (340 , 546 ) State subventions
Charges for services 6,270,200 6,179,500 (90 , 700)
Fines and forfeits 550 , 000 312,984 (237,016)
Interest income 2,363,500 2,638,922 275,422
Interdepartmental services 2,038,000 1,916,323 (121,6 77)
Miscellaneous 326.562 457.572 131.010
Total revenues 50.620.621 47.944.855 (2.675.766)
Expenditures :
Current:
General government 8,320,683 5,746,585 2 , 5 74 , 098
Public safety 16,592,947 15,679,674 913 , 273
Community development 8,957 , 296 7,775,736 1 , 181,560
Public works 2,010,247 1,279,428 730,819
Welfare 2 , 468 , 304 2 , 287 , 943 180,361
Culture and recreation 8,190,316 7,493,557 696,759
Maintenance and utilities 5,409,250 5,057,399 351,851
Principal retirement 420 , 000 420,000
Debt service : -
Interest and fiscal charges 1.368.712 1.367.965 74 7
Total expenditures 53.737.755 47.108.287 6.629.468
Excess (deficiency) of revenues
over expenditures (3.117.134) 836.568 3.953.702
Other financing sources (uses):
Operating transfers in 6,519,900 6,519,900 -
Operating transfers out (1.689.720) (1,689.720) -
sources (uses) 4.830.180 4.830.180 - Total other financing
Excess (deficiency) of
revenues and other financing
sources over expenditures
and other financing uses 1,713,046 5,666 , 748 3,953 , 702
Fund balance at beginning of year,
Residual equity transfers in - 850 , 025 850 , 025
Residual equity transfers out - (965.454) (965,454)
3,838,273 Fund balance at end of year $ 19,452.067 23.290.340
See accompanying notes to combined financial statements.
as adjusted (note 21) 17,739,021 17,739,021 -
38
CITY OF CARLSBAD
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Combined Statement of Revenues, Expenses and
Changes in Retained Earnings All Proprietary Fund Types
For the year ended June 30, 1992
To tal
Internal (Memoran
Enterprise Service onlv) Operating revenues:
Water sales $ 7,911,918 - 7 , 911,91
Sewer service charges 3 , 844,265 - 3,844,20
Other charges for services 491,907 5,643,075 6,134,98
Miscellaneous 419.563 505.982 925.54
Total operating revenues 13.667.204 6.149.057 19.816,25
Facilities revenue 999,547 - 999 , 54
Operating expenses:
Plant operations 1,845,970 - 19845 9 9 7
Purchased water 4,596,062 - 4,596 , 06
Depreciation and amortization 2,202 , 995 657,743 2,860,73
Fuel and supplies - 456,523 456,52
Claims expense - 3 , 391,087 3,391 , 08 j I General and administrative 5.053.280 1.361.033 6.414.31:
Total operating expenses 13.698.30 7 5.866.386 19.564.69:
(31.107) 282.6 71 251.561 Operating income (loss)
Nonoperating revenues (expenses):
Interest income 2,232,785 491,216 2,724,001 Interest expense and fees, net
of capitalized interest (894,385) - (894 , 385
Loss on disposal of property (2,444,345) (216,828) (2,661,171
Property taxes and rent 785 , 928 - 785,92€
Miscellaneous income 36,707 - 36 , 707 (26.71C Amortization of issuance costs (26,710) -
Total nonoperating revenues, net ( 3 10.0 20 1 274.388 (35.632 I Net income (loss) (341 , 127 ) 557,059 215 , 932
Retained earnings at beginning of year 35,203,536 3,233,113 38,436,649
Residual equity transfer out (41 .OOO) - (41.000
Retained earnings at end of year $ 34.821.409> 3,790.172 %611,581
See accompanying notes to combined financial statements.
39
CITY OF CARLSBAD
Combined Statement of Cash Flows
All Proprietary Fund Types
For the year ended June 30, 1992
To tal
Internal (Memorandum
Entermise Service onlv)
Cash flows from operating activities:
Operating income (loss) $ (31,107) 282,671 251,564
Adjustments to reconcile operating
income (loss) to net cash provided by
operating activities:
Depreciation and amortization 2,202,995 657,743 2,860,738
Decrease in receivables 491,380 1,742 493,122
Increase in advances and due to/due
from other funds 89,655 - 89,655
Decrease in due from other governments 83,450 - 83 , 450
(Increase) decrease in inventory (121,069 ) 3,509 (117,560)
Increase (decrease) in accounts
Increase in accrued wages payable 238,406 6,057 244,463
Increase in estimated claims payable - 291.696 291.696
payable (1,068,119 1 45,175 (1,022,944)
Net cash provided by
operating activities 1.885.59 1 1.288.593 3.174.184
Cash flows from noncapital financing
activities - property taxes and
rent received 785.928 - 785.928
Cash flows from capital and related
financing activities:
Purchases of property, plant
and equipment (7,004,432) (430,239) (7,434,671)
Loss on disposal of assets 2,444,345 216,828 2,661,173
Principal payments on bonds (685,000) - (685,000) Interest and other fees paid on bonds (1,792,118) - (1,792,118 )
Contributions to other funds (41,000) - (41,000)
Contributions from other governments 120,213 - 120,213
Decrease in deposits payable (109,641) - (109,641)
(83,506 ) Miscellaneous expense (83,506 ) -
Proceeds from capital contributions 1.038.260 500.000 1.538.260
Net cash provided by (used in)
capital and related financing
activities (6.112.879) 286.589 (5. 826.290)
See accompanying notes to combined financial statements.
40
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Tot Internal (Memo1
Enterprise Se IT i c e onl
Cash flows from investing activities:
Net decrease in restricted investments 3 , 381,382 - 3 , 381
Decrease in deferred compensation
Interest on investments 2.259.494 468 .S68 2.728
Decrease in deferred compensation payable (1,101,849) - (1 , 101
investments 1,101,849 - 1,101
Net cash provided by
investing activities 5.640.876 468.568 6.109
Net increase in cash and cash equivalents 2,199,516 2,043,750 4,243
Cash and cash equivalents at
beginning of year 30.740.224 6.790.131 37.530
Cash and cash equivalents at
end of year (note 4) $ 22.939.740 8.8 33.881 41.773
Supplemental schedule of noncash
investing and financing activities -
capital assets contributed by
contractors and/or other funds $ 2,000,936 394,454 2,395,
1 41
CITY OF CARLSBAD
Notes to Combined Financial Statements
June 30, 1992
(1) Surmnarv of Significant Accounting Policies
The City of Carlsbad, California (Carlsbad) was incorporated on July 16,
1952. Carlsbad operates under a Council-Manager form of government and
provides the following services as authorized by its charter: general
government , public safety, community development , public works ,
culture, and recreation. Carlsbad is not subject to federal or state
income taxes.
\ The accounting policies of Carlsbad and its component units conform to
generally accepted accounting principles as applicable to governmental
units. The following is a summary of the more significant policies:
(a) Description and SCOD e of the Reporting Entity
The Comprehensive Annual Financial Report includes all entities for
which Carlsbad exercises oversight responsibility as defined by the
National Council on Governmental Accounting (NCGA) Statement No. 3
"Defining the Reporting Entity." This responsibility includes, but
is not limited to, the authority to govern, manage, approve
budgets, and assume fiscal accountability.
The financial statements of the reporting entity (the City) include
the financial activities of Carlsbad, the Housing Authority of the
City of Carlsbad, the Parking and 'Building Authorities of the City
of Carlsbad, the City of Carlsbad Public Improvement Corporation,
the Carlsbad Redevelopment Agency and the Carlsbad Municipal Water
District (the District). Their financial operations are closely
related and the City Council has a continuing oversight
responsibility over these entities. The oversight responsibility
is determined on the basis of budget adoption, taxing authority,
funding and appointment of the governing board.
The City also has an interest in a joint sewage treatment facility
known as the Encina Water Pollution Control Facility and in a
financing authority known as the Encina Financing Joint Powers
Authority. Since the City does not have significant influence over
the management or the operation of these entities, they have not
been included as component units in the City's financial statements.
42 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(1) Summary of Significant Accounting Policies. Continued
(b) Basis of Presentation
The accounts of the City are organized an the basis of funl
account groups, each of which is considered to be a sep
accounting entity. The operations of each fund or account are accounted for by providing a separate set of self-bala
accounts that comprise its assets, liabilities, fund bal
retained earnings, revenues, and expenditures or expenses.
various funds and account groups are summarized by type ir
financial statements. Fund types and account groups used b:
City are as follows: I GOVERNMENTAL FWJD TYPES:
Governmental funds are used to account for the City's expen
financial resources and related liabilities (except those acco
for in proprietary and similar trust funds). The measurement
is based upon determination of changes in financial position.
following are the City's governmental fund types:
General Fund
The general fund is the general operating fund of the City.
used to account for all financial resources except those req
to be accounted for in another fund.
Special Revenue Funds
Special revenue funds are used to account for revenues derived
specific sources (other than major capital projects) that
restricted by law or administrative regulation to expendii
for specified purposes.
Debt Service Funds
Debt service funds are used to account for the accumulatio
resources for, and payment of , general long-term debt princ.
interest and related costs.
Cauital Projects Funds
Capital projects funds are used to account for financial resol
to be used for the acquisition or construction of major caE
facilities other than those financed by proprietary funds.
43 (Con t ii
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) 1 ntinue
(b) Basis of Presentation. Continued
PROPRIETARY FUND TYPES:
Proprietary funds are used to account for activities that are similar
to those found in the private sector. The measurement focus is
The following are the City's proprietary fund types:
EnterDrise Funda
Enterprise funds are used to account for operations (a) that are
financed primarily through user charges, or (b) where the
governing body has decided that determination of net income is
appropriate.
based upon determination of net income and capital maintenance,
Internal Service Funds
Internal Service funds are used to account for goods or senrices
provided by one department to other departments of the City on a
cost-reimbursement basis.
FIDUCIARY FUND TYPE:
Fiduciary funds are used to account for assets held by the City in a
trustee capacity or as an agent for individuals, private
organizations, other governmental units, and/or other funds. The
following is the City's fiduciary fund type:
Aaencv Funds
Agency funds are used to account for assets held by the City in an
agency capacity for individuals and private businesses. They do
not involve measurement of results of operations.
ACCOUN T GROUPS:
Account groups are used to establish accounting control and
accountability for the City's general fixed assets and general
long-term debt. The following are the City's account groups:
44 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
1
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(1) Summary of Significant Accounting Policies, Continued
Ib) Basis of Presentation. Continued
General Fixed Assets Account GrouD
This account group is used to account for all fixed assets o
City other than those accounted for in the proprietary funds.
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General Long-term Debt Account Group
This account group is used to account for all long-term obliga
of the City except those accounted for in the proprietary
and trust funds.
(c) Measurement Fo cus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measurc
focus. Accordingly, only current assets and current liabil:
are included on their balance sheets, and the reported fund ba:
provides an indication of available, spendable resoui
Operating statements for governmental fund types report incrc
(revenues) and decreases (expenditures) in available, spend
resources.
The proprietary fund types are accounted for on an "in
determination" or "cost of services" measurement fa
Accordingly, all assets and liabilities are included on the bal
sheet, and the reported fund equity provides an indication of
historical net worth of the fund. Operating statements
proprietary fund types report increases (revenues) and decre
(expenses) in total historical net worth.
Fiduciary fund types are custodial in nature (assets e
liabilities) and do not involve measurement of results
operations. Fiduciary fund assets and liabilities are accou
for on the modified accrual basis of accounting.
Governmental fund types use the modified accrual basis
accounting. Revenues are recognized when susceptible to accri
i.e., both measurable and available. Available means collect:
within the current period or soon enough thereafter to be usec
pay liabilities of the current period. In applying the suscepti
to accrual concept to intergovernmental revenues, the legal
contractual requirements of the individual programs are used
guidance.
45 (Continu
CITY OF CARLSBAD
Notes to Combined Financial Statements , Continued
(1) Summarv of Significant Accounting Policies. Continued
(c) Measurement Focus and Basis for Accountinv. Continued
Revenues that are accrued include real property taxes, sales tax,
interest, and some state and federal grants.
Real property taxes are levied on October 15 against owners of record
at March 1. The taxes are due in two installments, on November 1
and February 1, and become delinquent after December 10 and
April 10, respectively. Tax liens attach annually as of 12:Ol a.m.
on the first day of March in the fiscal year for which the taxes
are levied. Under the provisions of NCGA Interpretation 3,
property tax revenue is recognized in the fiscal year for which the
taxes have been levied, provided it is collected within 60 days of
the end of the fiscal year.
Governmental expenditures are recorded when the related fund
liability is incurred. Principal and interest on general long-term
debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made
early in the following year.
Proprietary funds use the accrual basis of accounting, i.e., revenues
are recognized in the period earned and expenses are recognized in
the period incurred.
(d) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and
other commitments for the expenditure of monies are recorded in
order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary control in the
governmental funds. Encumbrances outstanding at year-end do not
constitute expenditures or liabilities, but are reported as
reservations of fund balance.
(e) Cash and Investments
Cash includes amounts in demand and time deposits. Investments are
stated at cost or amortized cost, except for deferred compensation
assets which are shown at market value.
The City maintains a cash and investment pool that is available for
use by all funds. Interest income earned as a result of pooling is
allocated to the appropriate funds based on average monthly cash
balances.
46 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(1) Summary of Significant Accounting Policies. Continued
(f) Inventories
Inventories consist of materials and supplies that are valued at
and are recorded as expenses on a first-in, first-out basis
consumed.
(g) Compensated Absences
Vacation pay is payable to employees at the time used or
termination of employment. For governmental funds, the cos
accumulated vacation expected to be paid in the next 12 montf
12 months (if any) are recorded in the general long-term
account group. For proprietary funds, the cost of vacatio
recorded as a liability when earned.
recorded as a fund liability and amounts expected to be paid i
(h) Risk Management
The City accounts for its general liability, health insurance,
workers' compensation activities in internal service funds.
funds are responsible for collecting premiums from other City f
and departments and paying claims settlements and insur
premiums. Interfund premiums are based on the insured fL
claims experience. Incurred but not reported claims are accrue
year-end if material.
(i) Unbilled Se rvices
Unbilled water revenue of the enterprise funds is recognized 1 earned when the water is consumed.
(j) General Fixed Assets
General fixed assets are recorded as expenditures in the govemme
fund types and capitalized at historical cost in the general f
assets account group. In the case of gifts or contributions,
assets are recorded at fair market value at the time received.
Fixed assets consisting of certain improvements other than build?.
including roads, bridges, curbs and gutters, streets and sidewa
and drainage systems, have not been capitalized. Such as
normally are immovable and of value only to the City. Theref
the objective of stewardship for capital expenditures is satis
without recording these assets.
I
47 (Cont in1
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) Summary of Simificant Accounting Policies. Continued
(j) General Fixed Assets. Continued
In the general fixed assets account group, construction in progress
is transferred to buildings or improvements upon approval by the
City Council, which approximates the completion date.
No depreciation has been provided on general fixed assets.
(k) Propertv. Plant and Eauiument - Prourietarg Funds
Property, plant and equipment used by proprietary funds is stated at
cost or estimated historical cost. Contributed fixed assets are
recorded at estimated fair market value at the time received. Net
interest costs are capitalized on projects during the construction
period.
Depreciation is charged to operations using the straight-line method
based on the estimated useful life of the related asset. The
estimated useful lives of the assets are as follows:
Years
Buildings and improvements 10 - 50
Wells, reservoirs and dams 10 - 100
Transmission and distribution lines 40 - 70
Sewage treatment facility 55
E qui pmen t 3 - 20
Sewer, sewer lines and wells 50
Filters, pumps and fire hydrants 10 - 50
(1) Deferred Revenue
The deferred revenue in the General Fund represents interest due, but
not available, on advances to other funds.
The deferred revenue in the Debt Service Funds relates to a
prepayment of lease revenue from the General Fund to the Parking
Authority.
The deferred revenue in the Capital Projects Fund relates to funds
received and to be applied toward future construction.
48 (Continued )
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(1) Summarv of Simificant Accountins Policies. Continued
(1) Deferred Revenue. Co n t inued
The deferred revenue in the Enterprise Funds relates to deposi
in-kind prepayments for services to be rendered (e.g.,
installation, etc.).
(m) Statement of Cash Flows - ProDrietarv Funds
For purposes of the statement of cash flows, the Proprietary
consider all highly liquid investments with an original maturi
three months or less when purchased and all amounts invested
cash and investment pool to be cash equivalents.
(n) Advances to Other Funds
Interfund loan receivables are reported as advances and are oi
equally by a fund balance reserve which indicates that they dc
constitute expendable available financial resources and therc
are not available for appropriation.
(0) Reclassifications
During the year, the City's Water Utility Fund and the Carl
Municipal Water District were merged into one fund.
(p) Total Columns
Total columns on the combined statements are captioned "Memora
Only" to indicate that they are presented only to facili
financial analysis. Data in these columns do not present finan
position, results of operations, or cash flows in conformity
generally accepted accounting principles. Such data is
comparable to a consolidation since interfund eliminations have
been made.
(2) Budgetarv Data
The City follows these procedures in establishing its budgetary data:
1. During May or June, the City Manager submits to the City Councj
proposed operating budget for the fiscal year commencing
following July 1. The budget includes proposed expenditures
estimated revenues on a departmental basis.
2. Public hearings are conducted at City Council meetings to obt
citizens' comments during June.
49 ( Con t inu
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(2) Budgetary Data. Continued
3. Prior to July 1, the budget is enacted legally through passage of
an appropriation resolution.
The City Manager is authorized to make transfers of appropriated amounts
within a fund and function for up to $25,000. Revisions that alter the
total appropriations of any fund or function must be approved by the
City Council. A mid-year budget review is conducted each year. Any
major changes to the adopted budget are approved by the City Council at
that time. During the year, several supplementary appropriations were
necessary.
Budgets for governmental type funds are adopted on the modified accrual
basis, except that encumbrances are treated as budgeted expenditures in
the year purchases are committed. Additionally, certain remaining
unexpended or unencumbered appropriations at the close of the fiscal
year, provided for in the budget of the General Fund and legally
authorized by the City Council, are held available for the following
year and treated as budgeted expenditures of the current year. A1 1
other unencumbered appropriations lapse at year-end. Expenditures may
not exceed budgeted appropriations at the departmental level which may
cross the individual fund level.
For purposes of budgetary presentation, actual generally accepted
accounting principles (GAAP) expenditures have been adjusted to include
encumbrances outstanding and designations for continuing appropriations
at year-end. Annual budgets are adopted for the General, Special
Revenue Bonds, Building Authority, College Boulevard, Hosp Grove COP'S,
and Parking Authority. Accordingly, the revenues and expenditures for
these funds have been excluded from the budget basis financial
statements. Annual budgets are not adopted for the Capital Projects
Funds; therefore, budget basis financial statements have not been
prepared because a comparison of such budgetary amounts to annual
revenues and expenditures is not meaningful.
The following schedule is a reconciliation of the budgetary and GAAP fund
Revenue and Debt Service Funds except for the following: Mortgage
balances :
Special Debt
General Revenue Service
Fund Funds Funds
Fund balance-budgetary basis $ 15,281,261 6,252,022 1,757,057
Encumbrances outstanding
at year-end 676,074 237,261 -
continuing appropriations 851,738 - - Fund balance designated for
Fund balances of nonbudgeted funds - 53,500 3,146,970
Fund balance-GMP basis $ 16.809.073 6,542,783 4.904.027
50 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(3) Risk Management
The City is exposed to various risks of loss related to theft of, d
to, and destruction of assets: errors and omissions; injurie
employees; and natural disasters.
Effective January 1, 1991, the City became a participating member 01
California Municipal Insurance Authority (CMIA) risk-management 1
Under this program, the pool provides coverage for up to a maxim[
$5,000,000 per claim with a self-insured retention to be provide
the City in the amount of $500,000 per claim. In addition, e:
general liability insurance coverage up to $10,000,000 is provide(
catastrophic losses. Under the terms of the agreement with CMIA,
City must maintain an unencumbered portion of fund equity equa
$1,500,000 in the General Liability Self-Insurance Fund. At Jun
1992, unencumbered fund equity for this fund was approxim,
$2,050,000.
(4) Cas h and Investments
Each participating fund's portion of the City's cash and investment
is displayed on the combined balance sheet as "Cash and Investmex
This category also includes cash and investments that are
separately by several of the City's funds.
Authoritv for Deposits and Investments:
The City's investment policy and state statutes authorize the Cit
invest in obligations of the U.S. Treasury, its agencies
instrumentalities, commercial paper rated A-1 by Standard and PC
Corporation or P-1 by Moody's Commercial Paper record, ban1
acceptances with a maximum maturity of 270 days, repurchase agreeme
certificates of deposit with national and state licensed or chart
banks or federal or state savings and loan associations, medium-
corporate notes with a maximum five-year maturity rated in the two
rating categories, money market and mutual funds whose portfc
consist of one or more of the foregoing investments, the Cc
Treasurer's investment pool, and the State Treasurer's investment PC
State statutes require that all deposits be insured or collaterali
Depositories holding public funds on deposit are required to mair
collateral in the form of a pool of government securities with a ms
value of at least 10 percent in excess of the City's deposit o
percent in excess of the deposit as collateral in mortgage pools.
51 (Contin
.
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(4) Cas h and Investments. Continued
Authoritv for Deposits and Investments. Continued:
A summary of cash and investments, including investments in deferred compensation plans, is as follows:
Deposits :
Cash $ 10,413,538
Time certificate of deposit 99 , 000
Inves tmen ts 116.698.928
127,211,466
Less restricted portion (6.584.168)
Unrestricted cash and investments $ 120.627.298
The cash and cash equivalents component of the balance sheet caption
cash and investments are $32,939,740 and $8,833,881 for the
Enterprise Funds and Internal Service Funds, respectively.
Deoosi ts :
The following summary presents the amount of the City's deposits which
are fully insured or collateralized with securities held by the City
or its agent in the City's name (Category One), those deposits which
are collateralized with securities held by the pledging financial
institution's trust department or agent in the City's name (Category
Two), and those deposits which are not collateralized or are
collateralized with securities held by the pledging financial
institution or its trust department or agent but not in the City's
name (Category Three) at June 30, 1992.
Category Category Category Total Bank Carrying One Two Three Balance Amount
Cash $ 200,000 1,679,070 6,173 1,885,243 1,352,915
Cash with fiscal
agent/trustee 3,038 6,967,748 2,089,837 9,060,623 9,060,623 Time certificate
of deposit 99.000 - - 99.0 00 99.000
$ 302.038 8.646.818 w w 10.512.538
52 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(4) Cash and Investments. Continued
Investments :
The City categorizes investments according to the level of risk as
by the City. Category One includes investments that are ins
registered or held by the City's agent in the City's name. Cat
Two includes uninsured and unregistered investments held by
counterparty's trust department or agent in the City's name. Cat Three includes uninsured and unregistered investments held by
counterparty, its trust department or its agent, but not in the C
name. Certain investments have not been categorized because secur
are not used as evidence of the investment. These uncatego
investments include ownership interests in the Local Agency Inves
Fund, County Treasury Investment Pool and mutual funds and si
instruments. The summary below identifies the level of risk assum
the City and the total carrying amount and market value of the C
investments.
Category Category Category Un- Total Ma
One - Two Three csteaorized Investments V,
Local Agency
Investment Fund $ - - - 29,809,115 29,809,115 29,e
County Treasurer's
Investment Pool - - - 18,387,887 18,387,887 18, C
U.S. Government
agency obligations 16,951,313 - - - 16,951,313 17,:
U.S. Treasury
securities 9,445,616 1,822,049 - - 11,267,665 11,:
Corporate notes 30,389,050 - - - 30,389,050 31,: 1 Mutual funddother 108.196 1,105.600 - 8.680. 102 9,893,898 _9_Ls
Total $ $6.894.175 2.927.649 - 56,877.104 116.698.928 118.3
53 (Contir
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(5) Prouertv, Plant and Eo_uipment
A summary of changes in the general fixed assets account group is as
follows :
Balance Balance
July 1, June 30,
1991 Additions Deletions 1992
Land $ 23,378,726 2,567,942 - 25,946,668
26,664,097 Buildings 26,439,328 224,769 -
Improvements 2,341 , 359 193,987 (479,714) 2,055,632
Furniture and equipment 5,146,217 711,145 (552,358) 5,305,004
Construction in progress 4.395. 212 1.452.499 (2.782.908) 3.064.803
To tal $ 61.700.842 5.150.342 (3.814.980) 63. 036.204
Construction in progress in the general fixed assets account group is
composed of the following:
Expended
Balance
Project June 30, Com-
Authorization 1992 mitted
Library - South Carlsbad $ 1,138,729 1,097,103 41,626
Fire Station 1 & 2 Remodel 225 , 000 215,082 9 , 918
Fire Station 116 38,503 11,505 26,998
Carrillo Ranch Stabilization 504,001 486,510 17,491
Public Art - South Carlsbad Library 170,000 65,656 104 , 344
Larwin Park (22.3 Acres) 290,001 169,956 120,045
Streetscape Phase IV -
Sculpture Park 853,636 722,471 131,165 Alta Mira Park 19611,999 286,397 1,325,602
Public Art - Seawall 30 , 000 10 , 000 20,000
Public Art - Larwin Park 25.000 123 24.877
$ 4.886.869 3.064.803 1,822.066
There is no future financing commitment required on any of the above
noted construction projects.
54 (Continued )
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(5) ProDertv, Plant and Eauipment. Continued
A summary of proprietary fund type property, plant and equipmen
June 30, 1992 follows:
Intel
Serv En t e rpr i s e
Land, water rights, rights-of-way $ 2,157,600
Buildings and improvements 8 , 698 , 947
Wells, reservoirs and dams 17,324,133
Transmission and distribution lines 26,566,350
Sewer, sewer lines and wells 23,516,855
Equipment and vehicles 2,125,559 4,738,
-
Sewage treatment facility 31,036,678 -
Construction in progress 3.778.403 -
115 , 204,525 4 , 738,
Less accumulated depreciation (18.313.334) (2.097,
Property, plant and equipment, net $ 96.891.191 2.641,
Enterprise Fund interest is charged to expense as incurred except
interest related to borrowings used for construction, which
capitalized net of interest earned on construction funds borroi
Interest capitalization ceases when the construction project
substantially complete. Net interest costs of $625,145 1
capitalized in the Enterprise Funds during 1992. Total interest cc
incurred and interest earned on related interest-bearing investm
acquired with proceeds of the tax-exempt borrowings were $1,712,488
$224,810, respectively.
The Enterprise Funds had various construction contracts in progress
June 30, 1992 with an estimated cost to complete of approximar
$1,210,000. There is no future financing required on any of tl
projects. Approximately $2,400,000 was written off relating to
Calavera Hills Water Reclamation Facility.
55 (Con t inu
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(6) Joint Ventures
Encina Water Pollution Control Facilitv:
The Encina Water Pollution Control Facility (the Facility) is a sewer
system owned jointly by the Cities of Carlsbad and Vista, the Leucadia
County Water District, the Buena Vista Sanitation District, the
Vallecitos Water District (formerly the San Marcos County Water
District) and the Encinitas Sanitary District. The Encina Wastewater
Authority is the operator and administrator of the facility and is
responsible for the management, maintenance and operations of the joint
system, Ownership percentages are determined by joint agreement at the
time the assets are acquired. As of June 30, 1992, the Cities and
Districts have the following approximate ownership interest:
City of Carlsbad 25%
City of Vista 33
Leucadia County Water District 16
Vallecitos Water District 16
Encinitas Sanitary District 5
Buena Vista Sanitation District 5
The latest available financial statements of the Facility, dated June 30,
1991, show the following:
Total assets $ 117,864,904
Total liabilities 4.845 074
Fund balance 113,019,830
Net change in fund balance $ 14,393.855
The Facility does not recognize net income or loss. Net operating
expenditures in excess of users' assessments are treated as accounts
receivable on the Facility's books and charged to users' accounts in
the following year. Conversely, users' assessments in excess of net
operating expenditures are treated as a liability and credited against
users' accounts, also in the following year. Under this basis, net
operating revenues for the Facility totaled $715,103 in fiscal year
1991. The net change in fund balance was attributable to plant
additions.
The City accounts for its portion of the Facility as a fixed asset of the
Sewer Enterprise Fund.
56 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(6) Joint Ventures. Continued
Encina Financing Joint Powers Authoritv:
The Encina Financing Joint Powers Authority (the Authority) was Cre
on February 1, 1989 between the City of Carlsbad, the City of Vi
the Buena Vista Sanitation District and the Leucadia County W
District. The primary purpose of the Authority is to issue rev
bonds in order to finance the expansion of the Facility. Repaymen
the bonds will be accomplished through payments made by each membe
the Authority pursuant to installment purchase agreements.
individual agreements set forth the purchase price and specify the service requirements for each member.
The Authority is governed by a Board of Directors, which consists of
director appointed by each member,
In August 1989, the Authority issued $33,500,000 of revenue bonds
executed installment purchase agreements for approximately the
amount. The following is a table of the outstanding balance owed a!
June 30, 1992 by each member and their approximate share in f additional capacity:
Installment Approxin
Member balance share
Buena Vista Sanitation District $ 6,616,250 19.754
City of Carlsbad 12,689,800 37.887 Leucadia County Water District 7,966,300 23.787
City of Vista 6.227.650 18.597
The installment balances are secured by a pledge of the revenues 1
each member's wastewater system, net of a deduction for maintenance
operating costs. Covenants within the agreements require the memb
to, among other things, (1) maintain insurance on the facility, and
establish wastewater rates which are sufficient to pay the operat
costs and debt service on the bonds and which will result in
revenues equal to 1.1 times the annual installment payments due.
The City's share in the accounts of the Authority is recorded in
Sewer Enterprise Fund. The expansion of the Facility is shown as
addition to the fixed assets of the Sewer Enterprise Fund.
I 57 (Con t inu
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Retirement Plan
The City contributes to the California Public Empfoyees Retirement System
(PERS), an agent multiple-employer public employee retirement system
that acts as a common investment and administrative agent for
participating public entities within the state of California. For the
year ended June 30, 1992, the payroll for employees covered by the PERS
employees. Total payroll for the same period was $23,038,320 and
$868 , 928 for Carlsbad and District employees , respectively.
was $20,189,245 for Carlsbad employees and $868,928 for District
All full-time employees are eligible to participate as members of PERS.
Benefits vest after an employee has been a member of the plan for five
years. Employees are eligible to retire after ages 50 to 60 with 5
years of credited service. Annual retirement benefits are determined
based on age at retirement, the length of membership service and the
amount of earnings based on the highest twelve consecutive months
average. The PERS also provides death and disability benefits. These
benefit provieions and all other requirements are established by state
statute.
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 and
adopted by the PERS Board of Administration. The employee
contributions are made by the City on behalf of the employees.
The amount shown below as the “pension benefit obligation” (PBO) is a
standardized disclosure measure of the present value of pension
benefits, adjusted for the effects of projected salary increases and
step-rate benefits, estimated to be payable in the future as a result
of employee service to date. The measure is intended to help users
assess the funding status of the PERS on a going-concern basis, assess
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.
58 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(7) Retirement Plan. Continued
The PBO was computed as part of actuarial valuations performed
June 30, 1991. Significant actuarial assumptions used in the vali
include (a) a rate of return on the investment of present and j
assets of 8.75 percent a year compounded annually (8.5 percent
June 30, 19901, (b) projected salary increases of 4.5 percent a
compounded annually (5 percent as of June 30, 1990), attributab
inflation, (c) additional projected salary increases of 2.5 p'
(2.75 percent for Carlsbad's safety employees) a year (2 percent
June 30, 1990 for all employees), attributable to seniority/merit
(d) no post-retirement benefit increases. The impact on current
contributions from changes in actuarial assumptions is not availab'
The total unfunded (assets in excess of) pension benefit oblig
applicable to Carlsbad and District employees was $3,263,05;
$(89,875), respectively, at June 30, 1991 (the date of the 1
actuarial valuations), as follows:
Carlsbad District - To
Pension benefit obligation:
Retirees and beneficiaries
currently receiving benefits
and terminated employees not
yet receiving benefits $ 18,011,222 495,988 18,50;
Accumulated employee
Current employees :
con t rib u t ions inc 1 uding
allocated investment earnings 12,539,394 634,560 13,171
Employer financed-vested 15,749,846 443,835 16,19:
Employer financed-nonvested 1.436.145 41.631 1.47;
Total pension benefit obligation 47,736,607 1,616,014 49,35:
Net assets available for benefits
at cost 44.473.550 1.705.88 9 46.179
Unfunded (assets in
excess of) pension
bene f it ob 1 iga t ion $ 3,263.057 (89.875) 3,173
The market value of the net assets available for benefits as of Jun
1991 was $49,321,167 and $1,891,831 for Carlsbad and the Dist t respectively.
59 (Conti
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Retirement Plan. Continued
Of the total change in Carlsbad's PBO from the prior year, $588,931
resulted from changes in benefit provisions. None of the total change
in the District's PBO from the prior year resulted from changes in
benefit provisions. Carlsbad's and the District's PBO decreased by
$1,473,069 and $63,448, respectively, as a result of changes in
actuarial assumptions.
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected
expected to be earned in the future as well as those already accrued.
According to this cost method, the normal cost for an employee is the
level amount which would fund the projected benefit if it were paid
annually from date of employment until retirement. PERS uses a
modification of the Entry Age Cost Method in which the employer's total
normal cost is expressed as a level percentage of payroll. PERS also
uses the level percentage of payroll method to amortize any unfunded
actuarial liabilities. The amortization period of the unfunded
actuarial liability ends on June 30, 2000.
benefit cost methodo It takes into account those benefits that are
The significant actuarial assumptions used to compute the actuarially
determined contribution requirement are the same as those used to
compute the pension benefit obligation, as previously described.
The actuarially determined employer and employee contributions applicable
to the City at June 30, 1992, based on an actuarial valuation as of
June 30, 1991, were as follows:
Carl sbad District Mi scel 1 aneous Safety Mi scell aneous Emol ovees Empl ovees Emol ovees Covered Covered Covered Contributions Pavroll Contributions Pavroll Contributions Pavroll
Required normal cost contribution $ 1,993,682 15.82% 1,818,637 23.96% 132,538 15.25% Amortization of the unfunded actuarial accrued liability 7,471 0.06% 33.712 0.44% 499 __ 0.06%
Total required
Actual employer contributions 1,196,462 9.50% 1,360,826 17.93% 77,760 8.95% Contributions made by the City on behalf of employees 872.527 6.93% 678.98Q 8.94% 56.969 6.56%
con tri buti ons $ 2.001.153 15.88% 1.852.3 42 24.4ch 133.037 15.31%
Total actual contributions $ Q68.989 16.43% _2,039.806 26.87% 134,729 15.51%
60 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
w
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(7) Retirement Plan. Continued
The District has a surplus related to miscellaneous employees as a I
of prior year actuarial gains. In order to maintain a level patte
contributions, the District has chosen not to apply the surpll
offset current year contributions.
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The following is three-year trend information which gives an indic
of the progress made in accumulating sufficient assets to pay ben
when due:
Carl sbad District m lpeQ E2-B 1941 lB!i-
Net assets available for benefits as a percentage of pension
Unfunded (assets in excess
benefit obligation 93.2% 93.9% 93.4% 105.6% 106.4% 1
of) pension benefit
obligation as a percentage of annual
covered payroll 17.2% 15.8% 15.1% (7.3)% (8.5)%
Actuari a1 1 y determi ned employer contributions as a percentage of
annual covered payroll 10.8% 10.8% 12.3% 7.5% 2.4%
Ten-year trend information is not currently available from the California Public Emp
Requi red Supplementary Informati on Analysis of Funding Progress (Unaudi ted )
Carl sbad
m
Retirement System; therefore, only the available information is presented.
1991 1990 1989 1988 M
Net assets avai 1 ab1 e for benefits, at cost $ 44,473,550 38,955,507 32,905 l 600 28,385 l 300 23,855 I 501
obligation 47,736,607 41,495,649 35,221,700 30,249,400 26,158,70(
Pensi on benef i t
Percentage funded 93.2% 93.9% 93.4% 93.8% 91.2%
Unfunded pension 1,864,100 2,303,200
Annual covered payroll 18,983,745 16,071,500 15,378,600 13,170,000 12,147,900
Unfunded pension benefit obligation as a percentage of annual
benefit obligation 3,263,057 2,540,142 2,316,100
covered payroll 17.2% 15.8% 15.1% 14.2% 19.0
I 61 (Con t in,
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Retirement Plan. Continued
Required Supplementary Information
(Unaudi ted) Analysis of Funding Progress, Continued
Oi stri ct mu 19ep 198p Exxi EBz
Net assets available for benefits, at cost 1,705,889 1,463,415 1,217,447 981,451 823,110
Pension benefit obligation 1,616,014 1,374,798 1,141,723 941,218 749,880
Percentage funded 105.6% 106.4% 106.6% 104.3% 109.8%
Assets in excess of pension benef i t ob1 i gat i on 89,875 88,617 75,724 40,233 73,230
Annual covered payroll 1,229,551 1,047,044 1,026,090 960,250 825,380
Assets in excess of pension benefit obligation as a percentage of annual covered payroll 7.3% 8.5% 7,4% 4.2% 8.9%
(8) Deferred ComDensation Plan
The City offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available
to substantially all full-time employees, permits them to defer a
portion of their salary until future years. Amounts deferred may not
exceed the lesser of $7,500 or 25% of a participants' "includable
compensation," as defined in the participation agreement. The deferred
compensation is not available to employees until termination,
retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and
rights purchased with those amounts, and all income attributable to
those amounts, property or rights are (until paid or made available to
the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under
the plan), subject only to the claims of the City's general creditors.
Participant's rights under the plan are equal to those of general
creditors of the City in an amount equal to the fair market value of
the deferred account of each participant.
62 (Con t hued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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The City believes it has no liability for losses under the plan but
have the duty of due care that would be required of an ordinary pr
investor. The City believes that it is highly unlikely that it
use the assets to satisfy the claims of general creditors in the fu
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(9) Obligations Under Capital Leases
In August 1987, the City entered into a sale and leaseback agreement
a financial institution for the Community Development Buil
Principal and interest payments totaling $234,529 are to be paid
year through 1997. The City's leasehold interest of $1,602,16(
been recorded in the City's general fixed asset account group.
The following is a summary by year of future minimum lease pay
remaining under capital leases and the present value of minimum
payments at June 30, 1992:
Year endina June 30,
1993 $ 234
1994 234
1995 234
1996 23r
1997 23r
Thereafter 11;
Total minimum lease payments 1,285
Less amounts representing interest (255 1 Present value of minimum lease payments $ 1.03
(10) Obligations Under Operating Leases
In June 1988, the City's Redevelopment Agency entered into an agrc
to lease a parking lot from a private party. The lease rec
are $39,240 for fiscal years ending June 30, 1992 and 1993 with
adjustments required at three-year intervals after fiscal year c
monthly rental payments for twenty years, Total annual rent pa]
I June 30, 1994.
63 (Cont In
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(10) Obligations Under ODerating Leases. Continued
In May 1990, the City's Redevelopment Agency entered into an agreement to
lease a parking lot on Carlsbad Village Drive from a private party.
The lease requires annual rental payments of $52,200 for five years,
commencing July 1, 1990,
The following is a schedule by year of future minimum rental payments
required under the operating leases at June 30, 1992:
Year endin? June 30,
1993 $ 91,440
1994 91,440
1995 93 , 794
1996 41,954
1997 41,954
Thereafter 526.119
Total minimum lease payments $ 886,701
(11) Long-term Debt
The following is a summary of changes in the principal balance of
long-term debt for the year ended June 30, 1992:
Principal Principal
Balance Balance
July 1, Ret ire- June 30,
1991 ment6 1992
General long-term debt
ac count group :
Bonds $ 13,585,000 625,000 12,960,000
Special assessment debt with
governmental commitment 8,765,000 300,000 8,465,000
Obligations under capital
leases 1,175,330 144 , 708 1,030,622
Certificates of participation 8.340 .OOO 250.000 8.090.000
To tal general
long-term debt $ 31,865,330 1,319.708 30,545.g22
Enterprise funds:
Bonds 40,000 40,000 -
Certificates of participation 12,700,000 645,000 12,055,000
Installment purchase agreement 12.689,800 - 12.689.800
Total. enterprise funds $ 25.429.800 685,000 24.744.800
64 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(11) Lonp;-term Debt. Continued
Long-term debt at June 30, 1992 is comprised of the following issues:
Bala
June
191
General Long-term Debt:
1967 Carlsbad Building Authority Revenue Bonds,
remaining principal and interest due on December 15,
1992, interest is 6.0% per annum, payable from the
General Fund $ 35
1969 Carlsbad Parking Authority Revenue Bonds,
principal due in amounts ranging from $100,000 to
interest payable on October 1 and April 1 at 6.4%
per annum, payable from the General Fund 450
$125,000 OR October 1 of each year through 1995,
1981 Carlsbad Parking Authority Revenue Bonds,
principal due in amounts ranging from $75,000 to
$150,000 on February 1 of each year through 2001,
interest payable on August 1 and February 1 at 8.0%
per annum, payable from the General Fwd 1 .ooc
Parking and building authorities
revenue bonds 1.48:
1988 Carlsbad Housing and Redevelopment Commission Tax
Allocation Bonds, principal due in amounts ranging
from $290,000 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
11.47: April 1 at rates varying from 5.9% to 7.8% per annum 8' Total bonds payable 12 , 96(
on April 1, 2011, interest payable on October 1 and
1986 College Boulevard Assessment District Bonds,
principal due in amounts ranging from $320,000 to
$910,000 on September 2 of each year through 2006,
interest payable on September 2 and March 2 at rates
varying from 7.25'3% to 8.0% per annum 8,46
Obligations under capital leases (note 9) 1,03
65 (Con t
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(11) Long-term Debt. Continued
Ba 1 an c e June 30,
1992
General Loneterm Debt. Continued:
1988 Carlsbad Certificates of Participation, principal
due in amounts ranging from $260,000 to $815,000 on
August 1 of each year through 2008, interest payable
on August 1 and February 1 at rates varying from
6.0% to 8.0% per annum $ 8.09 0.000
Total General Long-term Debt $ 30.545.622
Enterprise Fund Long-term Debt:
1988 Carlsbad Municipal Water District Certificates of
Participation, principal due in varying amounts
ranging from $685,000 to $1,425,000 on May 1 of each
year through 2004, interest payable on May 1 and
November 1 each year at rates varying from 6.4% to
7.3% per annum 12,055,000
Encina Financing Joint Powers Authority (EFJPA)
Installment Purchase Agreement, principal due in
varying amounts ranging from $274,630 to $1,049,276
on August 1 of each year from 1994 through 2014,
interest payable on February 1 and August 1 each
year at rates varying from 6.0% to 6.875% per annum 12.689.80 0
24,744,800
Less unamortized discount
and issuance costs (347 , 230)
Less current portion ( 685,000)
Total Enterprise Fund Long-term Debt $ 23.712.570
Reserve funds of approximately $5,130,000 are required to be held in debt
service funds to secure the payment of principal and interest on the
outstanding debt issues.
A portion of the Tax Allocation Bonds and the EFJPA Installment Purchase
Agreement are subject to mandatory redemption in part from sinking fund
payments. These sinking fund payments have been included in the debt
service requirements which follow.
66 (Continued )
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(11) Long-term Debt. Continued
Debt service requirements to maturity for general long-term debt ai
follows:
Parking and Certificates
Authorities Allocation District Parti-
Bui 1 ding Tax Assessment of
c i pa t ion Revenue Bonds Bonds Bonds m
866,448 3,2 1993 $ 316,650 1,137,938 973 , 180
1994 293,200 1,135,828 973,815 865,054 3,2
303,000 1,142,222 972,175 866,873 3,2 1995
1996 287,000 1,146,598 968,290 866,733 3,2
1997 150,000 1 , 148,522 966 , 918 859,795 3,l
1998-2002 633,000 5,786,452 4,814,602 4,290,225 15,5
2003-2007 - 5,860,824 4,764,000 4,262,400 14,8
2008-2011 - 4.750.280 - 1.700.800 6.4
1,982,850 22,108,664 14,432,980 14,578,328 53,l
Less amounts
representing
interest (497.850) (10.633.66 4) 15.9 67.980) (6,488.328) (23-J
Total general
long-term
debt $ 1,485,000 11,475.000 8,465,004 8.090.000 w
Debt service requirements to maturity for the enterprise funds a:
follows:
Water Encina
District Ins tal lment
Certificates of Purchase
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ParticiDation Aa r eemen t - To
1993 $ 1,527,538 844,452 2,371
1994 1,528,6 96 1 , 110 , 706 2,635
1995 1,526 , 248 1,108,498 2,634
1996 1,525,098 1 , 108 , 730 2,631
1997 1,524 , 822 1,107,542 2,632
19 98-2002 7,628,612 5,527,676 13,15€
2003-200 7 3,054 , 774 5,497,656 8,552
2008-201 2 - 5,460,704 5,46C
2013-2015 - 3.25 9,035 3,255
18,315,788 25 , 024 , 999 43,34( I interest (6.260.788) (12.335.192) (18.591
Total Enterprise Fund debt $ 12,055,000 12.689.tjOO 24.741
Less amounts representing
67 (Cont:
CITY OF CARLSBAD
Notes to Combined Financial Statements , Continued
(11) Long-term Debt. Continued
At June 30, 1992, the City was in compliance with all significant debt
covenants.
In November 1988, the District issued $14,370,000 in Certificates of
$12,000,000 of the outstanding 1984 Certificates of Participation (1984
COPs). The District deposited funds in an irrevocable trust with an
escrow agent to provide for all future service payments on the 1984
COPs. As a result, the 1984 COPs are considered to be defeased and the
liability for those certificates is not included in the District's
financial statements. At June 30, 1992, $10,800,000 of outstanding
1984 COPs are considered defeased.
Participation. A portion of the proceeds was used to refund
The College Boulevard Assessment District Bonds were issued under the
to finance the public infrastructure improvements project on College
Boulevard. If a delinquency occurs in the payment of the assessment
installments, the City, at the end of the fiscal year of delinquency,
has a duty to transfer to the debt service fund the amount of the
delinquency out of available funds of the City. Available funds
consist of any surplus funds of the City not required for lawful
municipal obligations. This duty of the City is continuing during the
period of delinquency, until reinstatement, redemption or sale of the
delinquent property. Even though neither the faith and credit nor the
taxing power of the City is pledged for the payment of the bonds, the
City is obligated in the manner stated above. Accordingly, these bonds
have been recorded in the general long-term debt account group of the
City.
provisions of the Improvement Bond Act of 1915. The bonds were issued
The College Boulevard Assessment District has delinquencies in the amount
of $362,535 for assessments due in fiscal years 1990-91 and 1991-92.
Although the delinquencies are 20% of the total assessment, only one
major property owner is delinquent and all principal and interest
payments were made without use of the reserve fund. The City's suit to
foreclose on the property is currently being delayed because of
bankruptcy actions.
68 (Continued )
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(12) Advances To and From Other Funds
The following table shows amounts advanced from funds within the Cit
other funds within the City at June 30, 1992:
Advances From Advances To Amol
General Fund Capital Projects Funds:
Park Development Fund $ 2,550
Planned Local Drainage
Facilities Fund 300
Redevelopment Area I1 Fund 30
Redevelopment Project Fund 7,460
Capital Projects Funds: Capital Projects Funds:
Capital Construction Fund Public Facilities
Construction Fund 950 a
Traffic Impact Fund 1,043 a
Construction Fund Park Development Fund 500. 1 Total advances $ 12.833<
Public Facilities
(13) Due To and From Other Funds
The following table shows amounts due from funds within the City to t
funds within the City at June 30, 1992:
Due to
General SE 1 Fund - Fi
Due from:
Special Revenue Funds:
Section 8 Housing Authority Fund $ 279,577 Senior Nutrition Fund 3,566
Capital Projects Funds:
Community Development Block Grants Fund
State Grants Fund
205,040
139,729
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Enterprise Funds:
Water Utility Fund - 174,
Total $627.912 _p__ 174
69 (Con t ii
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(14) Fund Balances/Retained Earnings
The following is a summary of reserved and unreserved fund balances and retained earnings as of June 30, 1992:
Governmental Fund Types Speci a1 Debt Capital Fund Balances General Revenue Service Pro i ects
Reserved for: - 164,488 - - 33,358 - - - Loans receivable $ Inventory Prepaid expenditures 43,500 165,881 - - Debt service - - 4,904,027 -
Advances to other funds 7,111,107 - - 2,493,000 Low and moderate income housing - 1,891,697 - -
Rent interrupti on insurance 131,000 - - -
Encumbrances 676.074 237.261 - 1,994,150
7.995. 039 2.459.327 4.904.027 4.487.150 Unreserved : Designated for approved capital projects - 121,656 - 18,001,416 Designated for continuing
Undesi gnated 7,962,296 3.961.800 - 6.160.579
8,814.034 4.083.456 - 24.161.995
Total fund balances $ 16,809,073 6,542.783 4.904.027 28.649.145
- - - appropriations 851,738
Prourie tarv Fund Tpes
Internal
En t erDr i s e Service
Reserved for: - Debt service $ 2,349,167 Rate stabilization and other 1.005.216 -
3 , 354,383 -
Unreserved 31.46 7.026 3 , 790.172
3 , 790.17 2 $ 34,821,400 Total retained earnings
Reserves for loans receivable, inventory, prepaid expenditures and
advances to other funds, excluding accrued interest thereon, are
established to show that certain assets are already committed to other
purposes and are not available for discretionary expenditures.
Reserves for debt service represent resources legally restricted to the
payment of long-term debt principal and interest maturing in future
years.
70 (Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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(14) Fund Balances/Retained Earnings. C on t inued
Reserves for low and moderate income housing represent monies requir
be expended on low and moderate income housing.
Reserves for rent interruption insurance represents monies required
set aside under a bond indenture.
Reserves for encumbrances represent commitments related to unperf
contracts for services and undelivered goods.
Reserves for rate stabilization and other represent amounts restrict offset future water rate increases and other uses#
Unreserved-undesignated represents the fund balance or retained ea1
remaining after reduction for reserved and designated fund balanc
retained earnings.
As of June 30, 1992, the Capital Projects - Redevelopment Project
had a deficit fund balance of $6,657,664. This deficit is expect
be funded by property tax increments received in the future.
(15) Changes in Contributed Capital
Intt
Enterprise Ser
Funds - Fu
Contributed capital, June 30, 1991 $ 72,448,230 4,67t
Additions ! Cash 708,460
Fixed assets 2,000 , 936 391
45' Residual equity transfer from General Fund 329 , 800
4 Residual equity transfer from Enterprise Fund -
Contributed capital, June 30, 1992 $ 75.487.426 5.57
71 (Cont
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(16) Sement Information for EnterDrise Funds
The City maintains four enterprise funds that provide water, sewer and
other services. Segment information for the year ended June 30, 1992
is as follows:
Carl s bad Muni cipal Total
District Course &Her !&&.e Funds Water Go1 f Sol id Enterprise
Operating revenues $ 9,379,035 - 4,248,921 39,244 13,667,200
Operating expenses: Depreciation and amortization 1,124,838 - 1,078,157 - 2,202,995 Other 8.395. 726 - 2,998.702 100.884 11.495.312
Operating income (loss) (141.529) - 172,062 (61,640) (31,107) Nonoperating income (expenses), net 1,112.868 60,537 (1.614.554) 131,129 (31 0,020)
Net income (loss) $ 971.339 60.537 j1.442.492) 69.482 (341.127)
Contributed capital : Begi nni ng balance 36,552,265 1,530,190 34,365,775 - 72,448,230 Current year additions 2.103.759 329,800 605,637 - 3,039.196
75.487.426 Endi ng balance $ 38.656.024 1.859.990 34,971,412 -
Property, plant and equipment: Additions 2.512.238 147.850 4.532.947 - 7.193,035
Del et i ons 52,634 - 2,542.883 - - 2,595.5 19
Net working capital $ 17.693.547 1.271.781 13.903.378, 86,901 32.955.607
Debt payable from operating revenues $12.055.MP - 12.689.800- - 24.744.804
98,580 138,885,382 11 -679 28.576.547
Total equity $ 55.591.851 2.049.892 52.580. 191 86.901 110.308.832
Total assets 68 l 702,468 2 l 050,395 68,033,939 Total 1 iabi 1 i ties 13,110.617 503 15.453.748
(17 1 Assessmen t District Bond Issues
As of June 30, 1992, the City had four series of Assessment District
Bonds outstanding in the amount of $24,326,210. These bonds were
issued under the provisions of the Improvement Bond Act of 1911 and
1915 and were used to finance public infrastructure improvement
projects.
72 (Continued)
CITY OF CARLSBAD
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(17) Assessment District Bond Issues. Continued
Reserve funds of approximately $2,430,000 are held to secure payme
principal and interest on the outstanding bonds.
For the bond issuances noted above, the City is not obligated ii
manner for the payment of debt service in the event of default b
property owners but is only acting as agent for the property owne
collecting the assessments , forwarding the collections to bondhol
and initiating foreclosure proceedings, if appropriate. Accordi
no liability for these bond issuances has been recorded in the GE
Long-term Debt Account Group and all debt service transactions
been recorded in an Agency fund.
( 18 ) Mort Page Revenue Bonds
Single-Family Mortgage Revenue Bonds have been issued to provide fun
purchase mortgage loans secured by first trust deeds
newly-constructed and existing single-family residences. The pt
of this program is to provide low interest rate home mortgage loa
persons of low or moderate income who are unable to qualifj
conventional mortgages at market rates. Multi-Family Housing RE
Bonds are issued to provide construction and permanent f inancii
developers of multi-family residential rental projects located i
City to be partially occupied by persons of low or moderate income.
The balance of the revenue bonds outstanding under these programs
June 30, 1992 is $33,281,941.
The bonds, together with interest thereon, are limited obligations c
City payable solely from bond proceeds, revenues and other an
derived solely from home mortgage and developer loans secured by
deed of trust, irrevocable letters of credit, and irrevocable s
bonds. In the opinion of City officials, these bonds are not pe
from any revenues or assets of the City, and neither the full fait
credit nor the taxing power of the City of Carlsbad, the sta
California, nor any political subdivision thereof , is obligated t
payment of the principal or interest on the bonds. According1
liability has been recorded in the General Long-term Debt Account C
One of the series of the Multi-Family Housing Revenue Bonds, w
current outstanding balance of $14,646,941, is in default dl
non-payment. The surety is currently paying the debt service o
bonds.
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(19) Commitments and Contingencies
The City is a defendant in certain legal actions arising in the r
course of operations. In the opinion of management and legal cot
any liability resulting from these actions will not result
material adverse effect on the City's financial position.
73 (Conti
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(19) Commitments and Continaencies. Continued
In November 1991, the City of Carlsbad entered into an agreement with the
San Diego Association of Governments (SANDAG), whereby SANDAG will loan
up to $8,200,000 of TransNet funds from the 1991 Series A Sales Tax
Revenue Commercial Paper Notes to the City of Carlsbad on a
reimbursement basis. The funds are to be used by the City of Carlsbad
to accelerate the implementation of the Palomar Airport/I-5 Interchange
Improvement Project. Interest costs on borrowed funds are limited to
the rate paid by SANDAG on the commercial paper. No money was borrowed
under this agreement during the year ended June 30, 1992.
(20) Post-Retirement Health Care
In addition to the pension benefits described in Note 7, the District, in
accordance with the District's Administrative Code, provides
(including their dependents) who voluntarily retire after the age of 50
with no less than 5 years of service and whose age combined with years
of service equals 70 or more or have reached the mandatory retirement
age with at least 5 years of service. Currently, two retirees meet
these eligibility requirements and are receiving benefits.
post-retirement health care benefits to its full-time employees
The District is to pay 100% of the premiums for health insurance which is
to be coordinated with Medicare and other benefits provided by federal
and state law, when available, to the extent it reduces the cost of
insurance premiums. Expenditures for post-retirement health care
benefits are funded on a pay-as-you-go basis. Expenditures of
approximately $2,300 were charged to expense for post-retirement health
care costs during 1992. Based on an actuarial valuation performed as
of November 1991, the District's liability for the current and past
service costs of these benefits is approximately $1,600,000.
(21) Prior Period Adjustment
In prior years, the City recorded interest on advances that was
measurable but not available as revenue rather than as deferred
revenue. As amounts are not available, they should be accounted for as
deferred revenue. Therefore, a prior period adjustment was made as of
June 30, 1991 to reclassify the accumulation of these charges in the
amount of $2,728,947 from the General Fund fund balance to deferred
revenue.
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The general fund is used to account for resources traditionally associa
with government which are not required legally or by sound financ
management to be accounted for in atlother fund.
CITY OF CARLSBAD
General Fund
Schedule of Revenues - Budget and Actual
(Budgetary Basis)
For the year ended June 30, 19.92
Actual on Variance
Budgetary Favorable
Budnet Basis ( Un f avo rab 1 e
Taxes :
Property taxes $ 14,560,000 13,511,504 (1,048,496)
Sales and use taxes 10,500,000 8,723,382 (1,776,618)
Transient lodging taxes 3,350,000 3 , 077,595 (272 , 405 )
Franchise taxes 800,000 880,719 80,719
Real property transfer taxes 275,000 206,888 (68 , 112)
Trailer coach in-lieu tax 20.000 24.087 4.087
Total taxes 29.505 .O 00 26.424.175 (3,080.825)
Licenses and permits:
Construction permits 530,000 219,445 (310,555)
Business licenses 875,000 910,532 35,532
License tax on new construction 500,000 303,073 (196,927)
Other 280.000 296.008 16.008
Total licenses and permits 2.185 .OOO 1.729.058 (455.942)
State Subventions:
Cigarette taxes 150,000 61,585 (88,415 )
Vehicle licenses (in-lieu) 2 , 385,000 2,134,080 (250,920)
Property tax reimbursements 295 .OOO 293.789 (1.211)
Total state subventions 2.830 .OOO 2.489.454 (340.546 )
Charges for services:
Planning fees 1,100,000 671 , 150 (428,850)
Building department fees 460,000 229,970 (230,030 ) Engineering fees 1,200,000 2,248,488 1,048,488
Growth management zone plan fees 110,000 26,497 (83,503 )
Weed abatement fees 35,000 28,086 (6,914)
Ambulance fees 190,000 225,029 35,029
Parks and recreation fees 700,000 711,654 11,654
Other 680.000 421 314 (258.186 )
Total charges for services 4,475.000 4,562.688 87.688
Totals, carried forward 38.995.000 35.205.375 (3.789.625)
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Actual on Variance
Budgetary Favorablt I Budget Basis (Unfavorab:
Totals, brought forward $ 38.995.0 00 35.205.375 (3.789.625
Fines and forfeits: Vehicle code fines 550,000 310,817 (239 , 183
Other - 2.167 2.167
550 .OOO 312.984 (237 .Ole
Interest income 2.000 .oo 0 2.152.26 7 152.267
Interdepartmental services:
Total fines and forfeitures
Engineering 400,000 449,477 49,477 - 10,827 10,827 Legal Other 1.638 .OOO 1.456.019 (181.981
Total interdepartmental services 2.038 .OOO 1.916.323 ( 121.6 77
Miscellaneous:
Sales of maps and publications - 41,685 41,68:
Sale of property - 16,526 16,526 - 181,182 181 , 18: Reimbursed expenditures Other 250.000 98.8 19 (151.181
Total miscellaneous 250.00 0 338. 212 88.21:
39,925.161 (3.907.83! Total revenues $ 43,833.00Q
See accompanying independent auditors' report.
CITY OF CARLSBAD
General Fund
Schedule of Expenditures - Budget and Actual
(Budgetary Basis)
For the year ended June 30, 1992
Actual on Variance
Budgetary Favorable
Budget Bas is (Unfavorable :
General government :
City council $ 166,340 154,640 11 , 700
City manager 713 , 394 651,571 61,823
City clerk 20,605 16,142 4,463
Visitors ' bureau 282 , 443 282 , 443 -
Comunity assistance 98,530 98,530
City attorney 478,575 407 , 925 70 , 650
Fin an c e 1,131,191 1,007,029 124 , 162
City treasurer 86,742 76,475 10,267
45 , 000 34,875 10,125 Audit
Purchasing 407,304 374,217 33,087 Human resources 994,205 839,054 155,151 Research and analysis group 322,991 292 , 350 30,641
Administration 452,792 374,993 77 , 799
Risk management/insurance 252,594 193,144 59,450
Contingency 960 , 720 - 960 , 720
Other 1.308.635 438.628 870.00 7
Total general government 7.722.061 5.242.016 2.480.045
-
Public safety:
Police protection 9,763,790 9,059,999 703 , 791
Fire protection 6.829.157 6.6 19.6 75 209.482
Total public safety 16.592.947 15.679.674 913.273
Totals, carried forward 24.315.008 20.921.690 3.393.3 18
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Actual on Variance
Budgetary Favorab 1 e
Budget Basis ( Un f avo rab 1 z
Totals, brought forward $ 24.315.008 20.921.690 3.393.3 18
Community development:
Community development 1,056,393 693,682 362,711 Engineering 3,938,727 3,753,247 185,480
P 1 ann ing 2,826,262 2,429,601 396,661
Building inspection 1.135.914 899. 206 236.708
Total community development 8.95 7.296 7.775.736 1.181.560
Culture and recreation:
Library 2,682,259 2,476,534 205,725
Parks and recreation 4,524,440 4,237,744 286,696
Cultural arts 308.715 288.442 20.273
Total culture and recreation 7,515.414 7.002.720 512.694
Maintenance and utilities:
Street maintenance 3,177,120 2,971,280 20 5 , 840
Facilities maintenance 1,508,477 1,416,390 92,087
Traffic signal maintenance 331,647 331,647 -
Administration 392.006 338.08 2 53.924
Total maintenance
and utilities 5.409.250 5.05 7.399 351.851
Total expenditures $ 46.196.968 40.757.545 5.439.423 m
See accompanying independent auditors' report.
SPECIAL REVENUE FUNDS
Civic Arts Program
To account for transfers from the General Fund to support the civic ar
program.
Community Development Block Grant
To account for federal block grants for commercial and residential loans fc
community development.
Federal Grants
To account for federal grants received to support the City's Nationr
Endowment for the Arts grant and Bilingual Library program.
Library Audio-visual Insurance
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 fo
designated low and moderate income housing.
Mortgage Revenue 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 Housing Authoritv
To account for federal grants for low and moderate income housing supplementa:
payments.
80
CITY OF CARLSBAD
Miscellaneous Statistical Information
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1
1991-92
Date of Incorporation July 16, 1952
Type of City General Law
Form of Gove mmen t
Area 42.19 square miles
Population 65,661
Number of street lights 1,108
Miles of streets
Fire Protection:
Council/Manager
238
Number of stations 6
Number of firefighters and officers
Number of stations 1
Number of sworn police officers
73
Police Protection:
78
Municipal Water District: Number of customers 17,167
Average daily consumption
Miles of lines and mains 3 25
Miles of sewers 113
Recreation and Culture:
12.9 million gallons
Number of parks (improved and unimproved) 36
Area of parks 326.88 acres
Number of pools 1
Number of libraries 2 I Number of volumes 206,887
Total number of City employees 495
175
176
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PARKING AUTHORITY OF THE
CITY OF CAFUSBAD
Combined Financial Statements e
June 30, 1992
(With Independent Auditors' Report Thereon)
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Table of Contents
June 30, 1992
e
e Independent Auditors' Report ...........................................
Combined Balance Sheet - All Governmental Fund Types
and Account Group ....................................................
Combined Statement of Revenues, Expenditures and Changes in @ Fund Balance - All Governmental Fund Types ...........................
Notes to Combined Financial Statements a * a * * a 4 * a o * a * 8 * I a * e * I b * e I * * a e a * e a
Supplementary Statements and Schedule:
e Combining Balance Sheet - Debt Service Funds .........................
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance - Debt Service Funds ..................................
Schedule of Insurance Coverage ....................................... 0
113J
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e Peat Ma rw ic k
Certified Public Accountants
750 B Street
San Diego. CA 92101
Independent Auditors' Reuort *
The Board of Directors
Parking Authority of the
City of Carlsbad, California: 0
We have audited the accompanying component unit financial statements of
Parking Authority of the City of Carlsbad (the Authority), as of and for
year ended June 30, 1992, as listed in the accompanying table of conte
These component unit financial statements are the responsibility of
Authority's management. Our responsibility is to express an opinion on t
component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted audj
standards. Those standards require that we plan and perform the audi
obtain reasonable assurance about whether the financial statements are fre
material misstatement. An audit includes examining, on a test basis, evic
supporting the amounts and disclosures in the financial statements. An i
also includes assessing the accounting principles used and signif
estimates made by management, as well as evaluating the overall final
statement presentation. We believe that our audit provides a reasonable 1
for our opinion.
In our opinion, the component unit financial statements referred to l
present fairly, in all material respects, the financial position of
Parking Authority of the City of Carlsbad as of June 30, 1992, and the re
of its operations for the year then ended in conformity with gene
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the component
financial statements taken as a whole. The combining financial statement
schedule listed in the accompanying table of contents are presented
purposes of additional analysis and are not a required part of the comp
unit financial statements of the Parking Authority of the City of Carl
Such information has been subjected to the auditing procedures applied ii
audit of the component unit financial statements and, in our opinior
fairly stated in all material respects in relation to the component
*
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financial statements taken as a whole.
KPNG pod d&
September 9, 1992
1
Y
Member F rm of ____ ___ Klynveld Peal Mawick Goerdeler
0
PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combined Balance Sheet
All Governmental Fund Types and Account Group
June 30, 1992
e
Governmen tal Account
General
e
Tc Debt Long-term (Mem Assets and Other Debits Notes General Service Debt 4
Cash and investments 2 $ 2,500 736,255 - 7 31 Net investment in direct financing leases 3 - 741 ,641 - 74 Accrued interest receivable - 16,104 - 11 Due from other funds 5 500 9,946 - 11 Amount available in debt service funds - - 708,359 701 Amount to be provided for retirement of general long-term debt - - 741.641 - 74
Total assets $aQ lA!&.Wj .J&Q.JU L%i
--
e
Liabilities and Fund Ba 1 ance
Liabilities: 1 Due to other funds 5 - 10,446 -
Deferred revenue - 785,141 - 78 Revenue bonds payable 4 - - 1.450.000 M
Total 1 iabil i ties - 795.58 7 1.450,OOQ 2,24
Reserved for debt service - 708,359 - 70 Unreserved - undesignated 3,000 -
Total fund balance 3.&!22 708.359 - 71
Total 1 i abil i ties
and fund balance $ L.!U 1.503-946 1.450.00Q 235
0
Fund bal ance:
- -
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9
See accompanying notes to combined financial statements.
2 0
e
PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance
All Governmental Fund Types
For the fiscal year ended June 30, 1992
a
e
To ta
Debt (Memori
Genera 1 Service - On17
Revenue : 0 Lease payments $- 174,000 174,C
Interest income -52.303 - 52.3
Total revenues ..-.-.-226,303 - 226.1
Expenditures : e Principal retirement - 175,000 175 ,C
Interest - 118,000 118,C
Administrative expenses 2.468 - 2.4
Total expenditures 2.468293.ooo 295.4
over revenues (2.468) (66,697) (69.1
e Excess of expenditures
Other financing sources (uses):
Operating transfers in 2,468 17,886 20,3
Operating transfers out ~ - (20.354) (20,3
sources (uses) 2.468 (2.468) -
other financing uses over
revenues and other
financing sources - (69,165) (69,1
Fund balance at beginning of year 3.000 777.524 780.:
Fund balance at end of year $UQQ L!xLIx! 711.:
1)
Total other financing
Excess of expenditures and
e
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0
See accompanying notes to combined financial statements.
3 *
0
PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
June 30, 1992
*
(1) Organization and Summa rv of Significant Accounting Policies
The Parking Authority of the City of Carlsbad (the Authority) was crI
pursuant to the Parking Law of 1949 and was authorized by Resoli
1264 by the City Council on April 19, 1966 for the purpose of prov
and expanding public parking facilities for the City of Carlsbad
City). A five-member commission appointed by the City Council go.
the Authority. The Authority is not subject to federal or state il
a
taxes a
0
The Authority is an integral part of the reporting entity of the 1
The accounts of the Authority have been included within the SCOI
the general purpose financial statements of the City because the
Council exercises oversight responsibility over the operations oi
Authority. Only the accounts of the Authority are included he
therefore, these financial statements do not purport to represenl
financial position or results of operations of the City of Carlsbad
The accounting policies of the Authority conform to generally acc
accounting principles as applicable to governmental units.
following is a summary of the more significant policies:
0
e
(a) Basis of Presentation:
The accounts of the Authority are organized on the basis of fund,
an account group, each of which is considered to be a sep
are accounted for by providing a separate set of self-bala
accounts that comprise its assets, liabilities, fund bal
revenues, and expenditures. The various funds and the ac
group are summarized by type in the financial statements.
types and the account group used by the Authority are as follow
accounting entity. The operations of each fund and account
*
GOVERNE4 ENTAL F"D TYPES:
Governmental funds are used to account for the Authority's expen
financial resources and related liabilities. The measurement
is upon determination of changes in financial position.
following are the Authority's governmental fund types:
General Fund
The general fund is the general operating fund of the Autho
It is used to account for all financial resources except
0
required to be accounted for in another fund.
(Conti
4 0
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued a
(1) Organization and Summary of Significant Accounting Policies. Co n t inue
(a) Basis of Presentation. Continued:
Debt Service Funds
Debt service funds are used to account for the accumulatic
resources for, and payment of, general long-term debt princ
interest and related costs.
a
GENERAL LONG-TERM DEBT ACCOUNT GROUP: e
This account group is used to establish accounting control
accountability for the Authority's general long-term debt.
used to account for all long-term obligations of the Authority.
(b ) Measuremen t Focus a nd Basis for Accoun t ing : e
Governmental fund types are accounted for on a "spending" measux
focus. Accordingly, only current assets and current liabil
generally are included on their balance sheets, and the re1
fund balance provides an indication of available, sper
resources. Operating statements for governmental fund types x
spendable resources.
*
increases (revenues) and decreases (expenditures ) in avaj
Governmental fund types use the modified accrual basi!
accounting. Revenues are recognized when susceptible to ac
(i.e., both measurable and available). Available means collec
within the current period or soon enough thereafter to be us
pay liabilities of the current period. Revenues that are ac
include interest income.
Governmental fund expenditures are recognized when the liabili
incurred, except for principal and interest on long-term
which is recognized when due.
t
(c) Budaets:
The Authority does not adopt an annual budget; thus, no bud[
comparisons are presented.
(d) Investments:
Investments are stated at cost or amortized cost which approx:
market value. a
(Cont:
5
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued 0
(1) Organization and Sunnna ry of Significant Accoun ting Policies. Co n t inue
(e) Total Columns:
Total columns on the combined statements are captioned "1
(Memorandum Only)" to indicate that they are presented on:
facilitate financial analysis. Data in these columns dc
present financial position, results of operations, or changl
fund balance in conformity with generally accepted accot
principles. Such data is not comparable to a consolidg
Interfund eliminations have not been made in the aggregatil
this data.
0
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(2) Cash and Investments
Authoritv for Deposits and Investments:
The Authority's investment policy and state statutes authorize
Authority to invest in obligations of the U.S. Treasury, its age
and instrumentalities, commercial paper rated A-1 by Standarc
Poor's Corporation or P-1 by Moody's Commercial Paper, bar
acceptances with a maximum maturity of 270 days, repurchase and re
repurchase agreements, certificates of deposit with national and
licensed or chartered banks or federal or state savings and
associations, money market and mutual funds whose portfolios consi
one or more of the foregoing investments, San Diego County inves
pool and the State Treasurer's investment pool.
0
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Classification of Investments bv C redit Risk:
As defined in Governmental Accounting Standards Board Statement 1
the Authority's investments are categorized in the following mannei
Category 1 - Investments that are insured or registered, for whic
securities are held by the Authority or its agent i
Authority's name.
e
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Category 2 - Uninsured and unregistered investments, for whicl
securities are held by the counterparty's trust depai
or agent in the Authority's name. e
Category 3 - Uninsured and unregistered investments, for whicl
securities are held by the counterparty, or by its
department or agent, but not in the Authority's name.
r)
(Cont:
6 0
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued e
(2) Cash and Investments, Continued
Cash and investments at June 30, 1992 consisted of the following:
Ma m yi
Deposits :
Investments (held by trustee):
All deposits 100% insured $ 2,500 2
Corporate notes (Category 1) 75,000 75
Mutual Funds and Other (Category 1) 108,196 io8
U,S, Treasury Notes and Bills (Category 2) 401,653 419
Government agency obligations (Category 1) 151,406 157 e
Total $ 738.755 Lhli
(3) Lease Agreements
Leases have been executed between the Authority and the City under
the City agreed to make annual payments of $138,400 and $174,00
the lease of a parking facility and its subsequent expan
respectively. The leases have been recorded by the Authority as d
financing leases.
e
Lease payments are due quarterly and terminate on the date of retir
of the related revenue bonds. Under the terms of the lease agree
and the bond resolutions, Debt Service Funds in excess of the
interest and principal payments may be used as follows: Firs1
maintain a reserve of $68,000 and $156,000, respectively, for the
the Authority and to maintain the fund balance at $3,000, and th
credits to the City for rentals due under the leases. Due to E
monies in the 1969 Bond Service Fund during the fiscal year E
June 30, 1992, no lease payments were required from the City unde
parking facility lease. A lease payment of $174,000 was rec
during the fiscal year ending June 30, 1992 from the City unde
expansion lease to cover debt service payments during the year fc
1981 bond issue.
and the 1981 Bonds, Next, to pay the General Fund for any expens
e
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(Conti
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued e
(4) Revenue Bonds Payable
The following is a summary of changes in revenue bonds payable foi
year ended June 30, 1992: a
Series Series l%!.2 lpsl Tol
Revenue bonds payable ,
June 30, 1991 $ 550,000 1,075,000 1,625
Bonds retired 100.000 75.000 175
0
Revenue bonds payable ,
June 30, 1992 $ 450.000 1.OOO.OOQ 1.454
e
Revenue bonds payable at June 30, 1992 were comprised of the foll
individual issues:
1969 Parkina Revenue Bond&:
1969 Carlsbad Parking Authority Revenue Bonds, remaining principal d
amounts ranging from $100,000 to $125,000 on October 1 of each
through 1995, interest payable on October 1 and April 1 at 6.4:
annum. The bonds are subject to call in whole or in part at the o
of the Authority at prices ranging from 100.5% to 105% of the prin
amount of the bonds. 0
1981 Parking Revenue Bonds:
1981 Carlsbad Parking Authority Revenue Bonds, remaining principal d
amounts ranging from $75,000 to $150,000 on February 1 of each
through 2001, interest payable on August 1 and February 1 at 8.0
annum. Bonds maturing on or after February 1, 1991 are subject tc
in whole or in part at the option of the Authority at prices rE
from 100.25% to 102% of the principal amount of the bonds.
*
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(Cont:
8 0
PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued a
(4 ) Revenue Bonds Pagab le, Continued
Debt service requirements to maturity for the revenue bonds payab11
as follows: a
Series Series
Year ending Jun e 30, 1p$e m Tot
1993 $ 125,600 155,000 280
1994 119,200 174,000 293
1995 137,000 166,000 303
1996 129,000 158,000 28 7
1997 - 150,000 150
Thereafter - 633 .OO 0633
5 10,800 1,436,000 1,946
0
e
Less amounts representing
interest 6o.800 436 .OOO 496
Total revenue bonds payable $ 450.000 1.000.000 1.450
e
At June 30, 1992, the Authority was in compliance with all signif
debt covenants.
(5) Due To and From Other Funds
The following table shows amounts due from funds within the Authori e
other funds within the Authority at June 30, 1992:
Due To:
General Fund Bond Sen ice Fu
Series Se 1969 - 1 e
Due from:
Bond Series Funds:
Series 1969 $ 250 -
Series 1981 250 - e
Reserve Funds :
Series 1969 - 2,105
Series 1981 - - I - -
I e Total $m u -
9
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e SUPPLEMKNTARP STATEMENTS AND SCHEDULE
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10 *
CARLSBAD REDEVELOPMENT AGENCY
Combined Balance Sheet
All Fund Types and Account Group
June 30, 1992
with comparative totals for June 30, 1991
Governmental Fund T~E
Special Debt
Notes Revenue Service - Assets and Other Debits
Cash and investments 3 $ 1,874,128 1,738,588 :
Accrued taxes receivable - -
Accrued interest receivable 30,399 18,469 Loan receivable 127,375 -
Amount available in debt service fund
Amount to be provided for
retirement of advances
Amount to be provided €or retirement of bonds - ..,
- -
- -
Total assets and
other debits $ 2,031,902 1,757,057 1
Liabilities and Fund Balance
Liabilities:
Accounts payable - -
Accrued expenses 6,634 -
Advances from the City of Carlsbad 5
Bonds payable 5
- - - -
Total liabilities 6,634 -
Reserved for loan receivable 7 127,375 -
income housing 7 1 , 891 , 697 - Reserved for encumbrances 7 6,196 -
Unreserved:
-
Fund balance:
Reserved for debt service 7 - 1,757,057
Reserved for Low and moderate
Designated for approved .. - capital projects 7
Undesignated 7 - -
Total fund balance 2,025,268 1,757,057
Total liabilities and
fund balance $ 2,031,902 1,757,057 .
See accompanying notes to combined financial statements.
CARLSBAD REDEVELOPMENT AGENCY
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance - All Governmental Fund Types
For the year ended June 30, 1992
with comparative totals for June 30, 1991
Special Debt
Notes Revenue Service -
Revenues : Tax increment $ 317,673 1,270,690
Interest 107,275 151,551
Miscel Laneous -
Total revenues 424,948 1,422,241 -
- -
Expenditures: 98,113 c General government
Capital outlay
Debt service:
- -
Pr inc i pa 1 - 299, 800
Interest and fiscal charges 1,364,057 -
Total expenditures 98,113 1,663,857 - 1
-
Excess (deficiency) of revenues over expenditures 326,835 (241,6161 (r
Other financing sources (uses) : Operating transfers in - 1,125,238
Operating transfers out - ( 1,12 5,238)
Proceeds from advances from the - t - City of Carlsbad 5
Total other financing - - - sources
Excess (deficiency) of revenues and
other financing sources over
expenditures and other financing uses 326,835 (241, 616)
Fund balance at beginning of year 1,698,433 L998,573 - 4
Fund balance at end of year $ &025,268 1,757,057 2 -
See accompanying notes to combined financial statements.
CARLSBAD REDEVELOPMENT AGENLY
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
(Budgetary Basis)
For the year ended June 30, 1992
I
Special Revenue
Actual on Va r ianc e
Budgetary Favorable
Budget Bas is (Unfavorable)
Revenues :
Tax increment $ 360,000 317,673 (42,327) 1
107,275 37,275 -
(5,052) -
Interest 70,000
1 Total revenues 430,000 424,948
Expenditures:
General government 98,113 104,309 (6,196)
Debt service : Print ipa 1 - - -
Interest and fiscal charges -
Tot a 1 expend i tu r e s 98,113 104,309 (6,196) -
over expenditures 331,887 320,639 (11,248) -
Operating transfers in - - -
Operating transfers out (1
- - -
1
Excess (deficiency) of revenues
Other financing sources (uses):
1 - - -
Total other financing - - - - sources (uses)
Excess (deficiency) of revenues and
other financing sources over
expenditures and other financing uses 331,887 320,639 (11,248)
1
2
I Fund balance at beginning of year 1,698,433 1,698,433 -
* Fund balance at end of year $ 2,030,?20 2,019,072 (11,248)
See accompanying notes to combined financial statements.
PAKKING AUTHORITY OF THE CLTY OF CARLSBAD
Combining Balance Sheet
Debt Service Funds
June 30, 1992
Bond Service Fund
Series Series
1981 - 1969 Assets -
Investment s $ 343,533 165,681
Net investment in direct financing leases 28,786 712,855
Due from other funds 2,105 7,841
Total assets $ 382,250 887.750
Accrued interest receivab Le 7,826 1,373
Liabilities and Fund Balance
Liabilities:
Due to other funds 250 250
Deferred revenue 28,786 756,355
Total liabilities 29,036 756,605
Fund balance - reserved for debt service 353,214 331,145
Total liabilities and fund balance $ 382,250 887, ?SO
See accompanying independent auditors' report.
11
PAKKING AUTHORITY OF THE CITY OF CARLSBAD
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
Debt Service Funds
June 30, 1992
Bond Service
Series S
1969 -
Revenues :
Lease payments $- 17
Interest income 27,982 -
Total revenues 27,982 - 17
Expendiiures :
Principal retirement 100,000 7
Interest 32,000 A 8
Total expenditures 132,000 I 16
Excess (deficiency) of revenues over expenditures (104,018) L L
Other financing sources (uses):
Operating t ran3 fers in 5,299 1
Operating transfers out (250) -
Total other financing sources (uses) 5,049 2
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses (98,969) 2
Fund balance at beginning of year 452,183 - LO
$ 353,214 13 Fund balance at end of year -
See accompanying independent auditors’ report.
12
0
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
June 30, 1992
e
(1) Organization and Summary of Significant Accountina Policies
e The Building Authority of the City of Carlsbad (the Authority)
organized on October 1, 1967 under a joint exercise of powers agrel
between the City of Carlsbad and the County of San Diego for
purpose of financing and constructing a civic center building for I
to the City of Carlsbad. Any excess of revenues over expenditure
net assets of the Authority remaining after providing for all debt€
obligations of the Authority are distributable upon dissolution tc
City of Carlsbad. The Authority is not subject to federal or s
income taxes.
e
The Authority is an integral part of the reporting entity of the Cit
Carlsbad (the City). The accounts of the Authority have been inc:
within the scope of the general purpose financial statements of
City because the City Council exercises oversight responsibility
the operations of the Authority, Only the accounts of the Authc
are included herein; therefore, these financial statements do
purport to represent the financial position or results of operatior
the City of Carlsbad.
*
e
The accounting policies of the Authority conform to generally acce
accounting principles as applicable to governmental units.
following is a summary of the more significant policies:
(a) Basis of Presentation:
The accounts of the Authority are organized on the basis of funds
an account group, each of which is considered to be a sepa
accounting entity. The operations of each fund and account g
are accounted for by providing a separate set of self-balar
accounts that comprise its assets, liabilities, fund bals e revenues, and expenditures. The various funds and account E
are summarized by type in the financial statements. The fund t
and account group used by the Authority are as follows:
GOVERNMFJU TAL FUND TYPES:
Governmental funds are used to account for the Authority's expend
financial resources and related liabilities. The measurement f
is upon determination of changes in financial position.
following are the Authority's governmental fund types:
*
0
4 (Contin
0
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued a
(1) Organization and Summarv of Significant Accountinsc. Policies. Continue
(a) Basis of Presentation. Continued:
GOVERNMENTAL FUND TYPES. Co n t inued :
General Fund
The general fund is the general operating fund of the Autho
It is used to account for all financial resources except
required to be accounted for in another fund.
Debt Service Funds
Debt service funds are used to account for the accumulatic
resources for, and payment of, general long-tern debt princ a interest and related costs.
GENERAL LON G-TERM DEBT ACCOUNT GROUP:
This account group is used to establish accounting control
accountability for the Authority's general long-term debt.
used to account for all long-term obligations of the Authority. e
(b) Measurement Focus and Basis for Accounting:
Governmental fund types are accounted for on a "spending" measuI
focus. Accordingly, only current assets and current liabil
generally are included on their balance sheets, and the reF
fund balance provides an indication of available, sper;
resources. Operating statements for governmental fund types I
increases (revenues) and decreases (expenditures) in avail
spendable resources.
*
Governmental fund types use the modified accrual basir
accounting. Revenues are recognized when susceptible to ac
(i .e., both measurable and available). Available means collec
within the current period or soon enough thereafter to be us pay liabilities of the current period. Revenues that are ac
e
include interest income. e
Governmental fund expenditures are recognized when the liabili
incurred, except for principal and interest on long-term
which is recognized when due.
*
5 (Cent: e
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued e
(1) Organization and Summary of Simificant Accounting Policies. Continue
(c) Budgets:
0 The Authority does not adopt an annual budget; thus, no budg
comparisons are presented.
( d ) Inves tmen t s :
Investments are stated at cost or amortized cost which approxi
market value.
(e) Total Columns:
Total columns on the combined statements are captioned "'1
(Memorandum Only)" to indicate that they are presented on: a facilitate financial analysis. Data in these columns dc
present financial position, results of operations, or chang
fund balance in conformity with generally accepted accot
principles. Such data is not comparable to a consolidi
Interfund eliminations have not been made in the aggregati
this data. a
(2) Cash and Investments
Authoritv for Depos its and Investments:
State statutes require that all deposits be insured or collateral
Depositories holding public funds are required to maintain collz
in the form of a pool of securities with the agent of the depos
having a market value of at least 10 to 50 percent in excess o
total amount of all public funds on deposit. Investments are fi
limited by the Authority's policy to invest only in U.S. govei
obligations purchased through its trustee.
Classification of Investments bv C redit Risk:
As defined in Governmental Accounting Standards Board Statement I
the Authority's investments are categorized in the following rnanne:
Category 1 - Investments that are insured or registered, for whic
securities are held by the Authority or its agent j
a
e
Authority's name.
Category 2 - Uninsured and unregistered investments, for whic
securities are held by the counterparty's trust depa
or agent in the Authority's name. 0
e 6 (Cent
0
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued e
(2) Cash and Investments. Continued
Classification of Investments by Credit Risk, Continued:
0 Category 3 - Uninsured and unregistered investments, for whict securities are held by the counterparty or by its
department or agent, but not in the Authority's name.
Cash and investments at June 30, 1992 consist of the following:
0 u Market Vi
Cash on deposit (all 100% insured) $ 5 38 5 38
112,873 U.S. Treasury Bills (all category 2) 112.873
Total $ 113.411 113.411 a
(3) Lease Aareemen t s
The Authority has leased the site for the Civic Center from the
under a ground lease dated November 1, 1967 for a total advance r
payment of $1. The lease expires upon expiration of the Joint P
Agreement between the Authority and the City.
On the same date, the Authority entered into an agreement with the
to lease back to the City the Civic Center site and the faciliti
be constructed thereon. The agreement requires annual lease pay
of $36,000 payable in advance on each July 1 until the Author
revenue bonds have been paid or provision for payment has been
In addition, the City must pay, upon written notice, all t
assessments, insurance and administrative costs of the Authority.
lease expires on September 30, 2007 or upon final payment of
bonds. This lease has been accounted for as a direct financing lea
a
a
(4) Revenue Bonds Payab le
The following is a summary of changes in revenue bonds payable fo:
year ended June 30, 1992: e
Revenue bonds payable as of June 30, 1991 $ 65
Bonds retired 3Q
Revenue bonds payable as of June 30, 1992 $3 e
7 (Conti e
a
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued e
(4) Revenue Bonds Pavab le. Continued
The Authority issued the 1967 Carlsbad Building Authority Revenue
in an original amount of $460,000 with interest payable at 6.04 e annum. The bonds were issued under a trust indenture with Ban
Trust Company of California as Trustee. The remaining bonds m
December 15, 1992.
Bonds maturing on or after December 15, 1979 are subject to call in
or in part at the option of the Authority. *
In accordance with the terms of the bond indenture, cash balances o
following funds are restricted to be used for specified purposc
follows :
General Fund - An amount necessary to pay administrative expenser
maintain $1,500 in working capital shall be maintained in this
Amounts accumulated after meeting the requirements of the inte
principal retirement and reserve funds and the working ca
requirements shall be declared surplus and may be used to reimburs
City for rent previously paid.
Interest and Principal Retirement Funds - On or before August 1 of
year, a sum sufficient to pay twelve months interest due on the
succeeding December 15 and June 15, as well as the amount of prin
maturing on the next succeeding December 15 shall be transferrf
these funds as necessary from the General Fund.
Debt Service Funds:
e
a
0
- Reserve Fund - An amount at least equal to one half the ma
annual debt service ($18,025) shall be maintained at all times.
excess shall on June 30, and December 30 of each year be transf
to the General Fund. This fund may be used to pay the prin
and/or interest on the last maturity of the bonds outstanding.
At June 30, 1992, the Authority was in compliance with all signif
e
debt covenants.
a
a
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SUPPLFMENTARY STATEMENT AND SCHEDULE
e
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0
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9 a
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance - Debt Service Funds
For the year ended June 30, 1992
e
Pr inc ipal
Interest Retirement Reserve Te
Revenue - interest on investments $ - 350 886- 1
e
Expenditures:
Principal retirement - 30,000 - 30
3 In teres t 3.ooo
33
- - e
Total expenditures 3.ooo 30.000 -
Excess (deficiency)
of revenues over
expenditures (3,Q00) (29.650) 886 (31
32
0
Other financing sources - operating transfers in 3.ooo 29.650 -
&cess of revenues and
other financing sources
over expenditures - - 886
0
- 19.170 U Fund balance at beginning of year -
a Fund balance at end of year $A - a&!ia
0
e
e
See accompanying independent auditors' report.
10 a
a
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Schedule of Insurance Coverage
June 30, 1992
e
Insurance coverage maintained by the City of Carlsbad with the Authority 1
as additional insured at June 30, 1992 includes: a
Amount of
Type o f Coverage Cove raze Term
All risk including valuable papers $ 36,093,500 10/01/91 to 10/
Rental income 522,000 10/01/91 to 10/
Equipment floater 517,400 10/01/91 to 10/
Honesty Blanket Bond 1,500,000 04/06/92 to 04/
e
Since January 1, 1986, the Authority has not been covered under a liab
insurance policy but is included under the City of Carlsbad's self-insu
program.
0
e
e
e
e
See accompanying independent auditors' report.
11 a
a
c
9
c
BUILDING AUTHORITY OF TEE
CITY OF' CARLSBAD
Combined Financial Statements
June 30, 1992
(With Independent Auditors' Report Thereon)
0
e
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9
L
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Table of Contents
June 30, 1992
e
9 Independent Auditors' Report ............................................
Combined Balance Sheet - All Governmental Fund Types
and Account Group .....................................................
Combined Statement of Revenues, Expenditures and Changes
in Fund Balance - All Governmental Fund Types .........................
Notes to Combined Financial Statements ..................................
Supplementary Statement and Schedule:
Combining Statement of Revenues, Expenditures and Changes
?
a
in Fund Balance - Debt Service Funds ................................
Schedule of Insurance Coverage ........................................
*
1)
-
7
L
-_ ~~ - - m KPM Peat Marwick
Certified Public Accountants
750 B Street
San Diego, CA 92101 *
Indeuendent Auditors' Report *
The Board of Directors
Building Authority of the
City of Carlsbad, California: cc,
We have audited the accompanying component unit financial statements of
Building Authority of the City of Carlsbad (the Authority) as of and foi
year ended June 30, 1992, as listed in the accompanying table of contc
These component unit financial statements are the responsibility of
Authority's management. Our responsibility is to express an opinion on t component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted audj
standards. Those standards require that we plan and perform the audi
obtain reasonable assurance about whether the financial statements are frc
material misstatement. An audit includes examining, on a test basis, evic
supporting the amounts and disclosures in the financial statements. An i
also includes assessing the accounting principles used and signifj
estimates made by management, as well as evaluating the overall finar
statement presentation. We believe that our audit provides a reasonable 1
for our opinion.
In our opinion, the component unit financial statements referred to a
present fairly, in all material respects, the financial position of
Building Authority of the City of Carlsbad as of June 30, 1992, and
results of its operations for the year then ended in conformity with gener
a
*
.L accepted accounting principles. -
Our audit was made for the purpose of forming an opinion on the component
financial statements taken as a whole. The combining financial statement
schedule listed in the accompanying table of contents are presented
purposes of additional analysis and are not a required part of the compc
unit financial statements of the Building Authority of the City of Carls
Such information has been subjected to the auditing procedures applied in
audit of the component unit financial statements and, in our opinion,
fairly stated in all material respects in relation to the component
financial statements taken as a whole.
KfMG Wdd
L
992
1 mber Firm of
k Goeideler
r
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Combined Balance Sheet
All Governmental Fund Types and Account Group
June 30, 1992
a
Governmental Account
Fund Tvoes Grouo
0
General T
Debt Long-term (Men
Assets and Other Debits Notes General Service Debt c
Cash and i rives tmen t s 2 8 93,407 20,004 - 11
Net investment in direct financing lease 3 14,944 - -
Interest receivable 184 52 -
Amount avai 1 ab1 e in debt servi ce fund - - 20,056 2
Amount to be provided for retirement
14.944 -
8 108.535 20.056 xiJ!Q!l -
0
1
1
16
of general long-term debt - - .I
Total assets
Li abi 1 i ti es and Fund Sal ante
Li abi 1 i ties:
Revenue bonds payable 4 - - 35,000 3
Deferred revenue 14.944 - -
Total 1 iabi 1 i ties 14.944 -
e
1
4
-
35.ooo -
Fund balance:
Reserved for debt service - 20,056 - 2
4 Unreserved - undesignated 93,591- - -
- 11 Total fund balance 93.59120.056 -
4
Total liabilities
16 and fund balance $108,535 a&& zd!Q!r! - t
accompanying notes to combined financial statements.
2
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Combined Financial Statements
June 30, 1992
(With Independent Auditors' Report Thereon)
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Table of Contents
June 30, 1992
1
Independent Auditors' Report ............................................
and Account Group ..................................................... Combined Balance Sheet - Governmental Fund Type
Combined Statement of Revenues, Expenditures and Changes in
Fund Balance - Governmental Fund Type .................................
Notes to Combined Financial Statements .................................. 4
Supplementary Statements:
Combining Balance Sheet - Debt Service Funds ..........................
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance - Debt Service Funds ................................... 1
~ - __
KPm- Peat Marwick
Certified Public Accountants
750 B Street
San Diego. CA 92101
Independent Auditors' Report
The Board of Directors
Carlsbad, California:
City of Carlsbad Public Improvement Corporation
We have audited the accompanying component unit financial statements of
City of Carlsbad Public Improvement Corporation (the Corporation) as of
for the year ended June 30, 1992, as listed in the accompanying table
contents. These component unit financial statements are the responsibility
the Corporation's management. Our responsibility is to express an opinion
these component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted audit
standards. Those standards require that we plan and perform the audit
obtain reasonable assurance about whether the financial statements are free
material misstatement. An audit includes examining, on a test basis, evide
supporting the amounts and disclosures in the financial statements. An au
also includes assessing the accounting principles used and signific
estimates made by management, as well as evaluating the overall financ
for our opinion.
In our opinion, the component unit financial statements referred to ab
present fairly, in all material respects, the financial position of the C
of Carlsbad Public Improvement Corporation as of June 30, 1992, and
results of its operations for the year then ended in conformity with genera
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the component u
financial statements taken as a whole. The combining financial stateme
listed in the accompanying table of contents are presented for purposes
additional analysis and are not a required part of the component u
financial statements of the City of Carlsbad Public Improvement Corporatil
Such information has been subjected to the auditing procedures applied in
audit of the component unit financial statements and, in our opinion,
fairly stated in all material respects in relation to the component u1
financial statements taken as a whole.
statement presentation. We believe that our audit provides a reasonable ba
KPdG Pg*ada
September 9, 1992
1
Member Firm of - J Klynveld Peal Mawick Goerdeler
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Combined Balance Sheet
Governmental Fund Type and Account Group
June 30, 1992
Governmental Account
Fund Type GrouD
General Tot:
Debt Long-term (Memor
Assets and Other Debits Notes Service Debt - On1
Cash and investments
held by trustee 2 $ 964,918 - 964 Net investment in direct - 8,051 financing lease 3 8,051,128
In t ere6 t rece ivab le 30,454 - 30
Amount available in debt
service funds - 971,432 971
Amount to be provided for
retirement of certificates
of participation - 7.118.568 7.118
Total assets $ .9-046.50Q 8,090.000 17,136,
Liabilities and Fund Ba lance
Liabilities :
2, Deferred revenue 8,051,128 - 8,051, Certificates of
participation payable 4 - l23azum8.090,
Total liabilities 8,053. 128 8.090.000 16.143,
Accounts payable 2,000 -
Fund balance :
Reserve for arbitrage 5 21 , 940 - 21 !
971 q
Total fund balance 993.3 72 - 993,
- Reserve for debt service 5 971.432
Total liabilities
and fund balance $ 9.046.500 8.09 0.000 17.136,
See accompanying notes to combined financial statements.
2
I CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance
Governmental Fund Type
For the year ended June 30, 1992
I
Debt
Servic
Revenues :
Lease payments $ 304,8E
Interest on investments 77,3:
Intergovernmental 1.08
383.30 Total revenues
Expenditures:
Principal 250, OC
Interest and fiscal charges 627.4:
Total expenditures 877.45
Deficiency of revenues over expenditures (494.14
Other financing sources (uses):
72,90
(72.90 Operating transfers in
Operating transfers out
Total other financing sources -
Deficiency of revenues and other financing
sources over expenditures and other
financing uses (494,14
1.487.51 Fund balance at beginning of year
Fund balance at end of year $ 993.37
See accompanying notes to combined financial statements.
3
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements, Continued
(1) Organization and Summa rv of Significant Accounting Policies. Continued
(a) Basis of Presentation, Continued:
GENERAL LONG-TERM DEBT ACCOUNT GROUP
This account group is used to establish accounting control
accountability for the Corporation's general long-term debt. I
used to account for all long-term obligations of the Corporation
(b) Measurement Focus a nd Basis for Accoun ting:
Governmental fund types are accounted for on a "spending" measure
focus. Accordingly, only current assets and current liabili
are generally included on their balance sheets, and the repc
fund balance provides an indication of available, spenc
resources. Operating statements for governmental fund types re
increases (revenues) and decreases (expenditures) in avail2
spendable resources.
Governmental fund types use the modified accrual basis of account
Revenues are recognized when susceptible to accrual (i.e.,
measurable and available). Available means collectible within
current period or soon enough thereafter to be used to
liabilities of the current period. Revenues that are acc
include interest income.
Governmental fund expenditures are recognized when the liabilit
incurred, except for principal and interest on long-term c
which is recognized when due.
(c) Budgets:
The Corporation does not adopt an annual budget, therefore
budgetary comparisons are presented.
(d) Investments:
Investments are stated at cost or amortized cost which approxii
market value.
5 (Con t ii
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements, Continued
(1) Organization and Summ arv of Significant Accountina Policies. Co ntinue
(e) Total Columns:
Total columns on the combined statements are captioned "Tt
(Memorandum Only)" to indicate that they are presented on1
facilitate financial analysis. Data in these columns do
present financial position, results of operations, or change
fund balance in conformity with generally accepted accoui
principles. Such data is not comparable to a consolida,
Interfund eliminations have not been made in the aggregatio
this data.
(2) Cash and Investments
Authority for Deposits:
State statutes require that all deposits be insured or collateralj
Depositories holding public funds are required to maintain collai
in the form of a pool of securities with the agent of the depos:
total amount of all public funds on deposit.
having a market value of at least 10 to 50 percent in excess of
Authoritv for Investments:
The Trust Agreement by and among the Bankers Trust'Company of Califoi
as successor trustee, the Corporation and the City of Carlsbad, c
June 1, 1988, authorizes the trustee to invest in Federal Trez
Securities, Federal Agency Securities, interest-bearing demand or
deposits, obligations of U.S. corporations having assets in exces
$500,000,000 and carrying one of the three highest ratings by Moc
and Standard and Poor's Corporation, repurchase agreements, n
market funds, commercial paper rated A-1 by Standard and PC
Corporation and P-1 by Moody's Commercial Paper with orig
maturities of not more than 180 days, bankers acceptances
maturities of not more than 270 days, and tax-exempt obligations I
in one of the three highest ratings by Moody's and Standard and PC
Corporation.
6 (Con t in
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements, Continued
(2) Cash and Investments, Continued
Classification of Investments by C redit Risk:
As defined in Governmental Accounting Standards Board Statement NI
the Corporation's investments are categorized in the following manni
Category 1 - Investments that are insured or registered, which are
by the Corporation or its agent in the Corporation's n:
Category 2 - Uninsured and unregistered investments, for which
securities are held by the counterparty's trust deparl
or agent in the Corporation's name.
Category 3 - Uninsured and unregistered investments, for which
securities are held by the counterparty or by its 1 department or agent, but not in the Corporation's name
Cash and investments at June 30, 1992 consisted of and are categorizt
follows:
Ma L
CQSt Y.a
Cash held by City of Carlsbad
Investments (all Category 2):
(all 100% insured) $ 2,026 2,
Money market account 93,892 93 Y
Guaranteed Funding Agreement 869,ooo 8.6%
Total $ 964.918 964,
(3) Lease Agreements
Under the terms of a lease agreement dated June 1, 1988, the City leased property known as Hosp Grove to the Corporation and
Corporation has leased back to the City the same property and
improvements constructed thereon. The Agreement requires the Cit
pay semiannual lease payments to the Corporation equal to the
service requirements of the Certificates of Participation issued by
Corporation on June 1, 1988 (the Certificates). The lease payments
due on each January 15 and July 15 until the Certificates have
paid in full. In addition, the City must pay all taxes, assessme
insurance, maintenance and utilities on the property and
improvements. The lease expires on August 1, 2008 or upon the dat
retirement of the Certificates. The lease has been accounted for
direct financing lease.
7 (Contir
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements, Continued
(4) Certificates of ParticiDation
The Corporation issued the Certificates on June 1, 1988 in the amou
$8,690,000 pursuant to a Trust Agreement by and among the Corpora
the City and the Bankers Trust Company of California. The Certifi
represent an undivided interest in the lease payments made by the
of Carlsbad to the Corporation. Interest is payable at rates ra
from 5.75% to 7.6% per annum. The Certificates mature on August
each year through 2008. Certificates maturing on August 1, 200
subject to mandatory redemption on August 1 in each year on or
August 1, 2001, in amounts reflected in the debt service require
call in whole or in part at the option of the Corporation at p
ranging from 100% to 102% of the principal amount of the Certificat
Debt service requirements to maturity for the Certificates are as fol
below. Certificates maturing on or after August 1, 1999 are subje
Year ending June 30,
1993 $ 866,448
1994 865,054
1995 866,873
1996 866 , 733
1997 859,795
1998-2002 4,290 , 225
2003-200 7 4,26 2 , 40 9
1.692.800 2008-2009
14,570,337 (6.480.33 7)
$ 8.090. 000
Less amounts representing interest
Changes in general long-term debt from the previous year result
payments of principal and interest on the Certificates.
At June 30, 1992, the Corporation was in compliance with all signif
debt covenants.
(5) Fund Balances
Reserve for arbitrage represents amounts which may be owed to the fe
government under the Tax Reform Act of 1986.
Reserve for debt service represents resources legally restricted tc
payment of general long-term debt principal and interest maturir
future years.
8
SUPPLEMENTARY STATEMENTS
9
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Combining Balance Sheet
Debt Service Funds
June 30, 1992
Lease
payment
Assets fund Reserve Ell
Cash and investments held by trustee $ 95,918 869,000 964
Net investment in direct
financing lease 8,051,128 - 8,051
Interest re ce ivab le 29 2 30.16230
Total assets $ 8.147.338 899.162 9.046
Liabilities and Fund Balance
Liabilities :
Accounts payable 2,000 - 2
Deferred revenue 8.05 1.128 - 8.051
Total liabilities 8,053. 128 - 8,053
Fund balance :
Reserve for arbitrage 21,940 - 21
Reserve for debt service 72.270 899.162 971
Total fund balance 94.210 899.162993
Total liabilities
and fund balance $ 8.147.338 899.L62-
See accompanying independent auditors' report.
10
CITY OF CARLSBAD
PUBLIC IMPROVEMENT CORPORATION
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
Debt Service Funds
For the year ended June 30, 1992
Lease
payment fund Reserve Tef
Revenues :
Lease payments $ 304,882 - 304
Interest on investments 3,692 73 , 643 77
Intergovernmental 1,088 - 1
Total revenues 309.662 73.643383
Expenditures: Principal 250,000 - 25 0
Interest and fiscal charges 627.450 - 627
Total expenditures 87 7.450 - 877
Excess (deficiency)
of revenues over
expenditures (567.788) '73.643 (494
Other financing sources (uses) :
Operating transfers in 72,909 - 72
Operating transfers out - (72.909) (72
Total other financing
sources (uses) 72 9 909 (72,909) -
Excess (deficiency) of
revenues and other
financing sources over
expenditures and other
financing uses (494,879) 7 34 (494
Fund balance at beginning of year 589,089 898.428 1.487
Fund balance at end of year $ 94.210 899.162 99;
See accompanying independent auditors' report.
11
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0
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CARLSBAD REDEvEM)PHE" AGENCY
Combined Financial Statements
June 30, 1992
with comparative totals for June 30, 1991
(With Independent Auditors' Report Thereon)
0
a
a
e
0
e
a
--_I - - a Peat Marwick
Certified Public Accountants
c 750 B Street
San Diego, CA 92101
0 Independent Auditors' Report
The Board of Commissioners
Carlsbad Redevelopment Agency e Carlsbad, California:
We have audited the combined balance sheet of the Carlsbad Redevelop
Agency (a component unit of the City of Carlsbad, California) as of June
1992, the related combined statement of revenues, expenditures, and change
fund balance, and the related combined statement of revenues, expenditures
changes in fund balance - budget and actual (budgetary basis) for the
then ended. These combined financial statements are the responsibility of
Agency's management. Our responsibility is to express an opinion on t
combined financial statements based on our audit.
We conducted our audit in accordance with generally accepted audi
standards. Those standards require that we plan and perform the audi
obtain reasonable assurance about whether the combined financial staten
basis, evidence supporting the amounts and disclosures in the comb
financial statements. An audit also includes assessing the accoun
principles used and significant estimates made by management, as wel:
evaluating the overall financial statement presentation. We believe that
audit provides a reasonable basis for our opinion.
In our opinion, the combined financial statements referred to above prc
fairly, in all material respects, the financial position of the Car3
Redevelopment Agency as of June 30, 1992 and the results of its operations
the year then ended in conformity with generally accepted accow
principles.
*
e
are free of material misstatement. An audit includes examining, on a
a
e
Ktm P! dmA
a October 9, 1992
m
e
Member Firm of __ Klynveld Peat Marwick Goerdeler
CITY OF CARLSBAD
Principal Taxpayers
1991-1992
Percentage
Total Net
Assessed
Taxvav er TvDe 0 f Business Valuation Valuation('
San Diego Gas & Electric CO. Power Generation $ 328,515,295 5.56%
Fieldstone/La Costa Assoc. Land Developer 174,391,826 2.95%
Hughes Aircraft Company Manufacturer 97,847,626 1.66%
Aviara Land Associates Ltd. Land Developer 67,728,052 1.14%
Aviara Resort Associates Ltd. Land Developer 44,775,200 .76%
Lyon/Copley Carlsbad Assoc. Land Developer 41,365,205 .70%
Upland Industries Corp. Land Developer 39,958,075 .68%
Kaiza Poinsettia Corp. Land Developer 31,613,572 .53%
Plaza Camino Real Shopping Center 29.354.373 .50%
$ 17.97%
La Costa Hotel & Spa Corp. Hotel & Health Spa 206,379,368 3.49%
(1) Net assessed valuation for 1991-1992 - $5,909,991,722
Source: County of San Diego Office of the Auditor and Controller.
174
CITY OF CARLSBAD
Principal Employers
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8
1
I
8
1
f
1
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199 1-1 992
Firm Product/Service Employe ei
Manufacturing:
Hughes Aircraft Electronic Components 1,000
Upper Deck Entertainment Cards 800
Puritan-Bennett Corporation Medical Equipment 550
Callaway Golf Golf Equipment 350
Taylor Made Golf Co., Inc. Golf Equipment 300
Smith & Nephew DonJoy, Inc. Orthopedic Braces 200
Charter Golf Golf Apparel 200
Beckman Instruments Medical Diagnostic Reagent 200
International Totalizer System Off-track Betting Systems 160
Dyna Corporation Medical Products and Printing Co. 155
South Coast Materials Co. Asphalt Supplies 150
Melles Griot Laser Products Gas Lasers 150
Linear Corporation Wireless Security Systems 150
Intelligent Medical Systems Ear Thermometers 150
Non-Manufacturing:
La Costa Hotel & Spa ' Hotel & Health Spa 1,300 Plaza Camino Real Shopping Mall (5 major Dept. Stores) 1,000
McMahan Furniture Furniture 700
Carlsbad Unified School District Education 610
Car Country Carlsbad Car Dealerships 500
Farmer's Insurance - Regional Insurance 450 i San Diego Gas 6 Electric Utility Company 400
City of Carlsbad Municipal Government 495
Source: City of Carlsbad Chamber of Commerce.
173
CITY OF CARLSBAD
Special Assessment Billings and Collections
College Boulevard Assessment District
Last Five Fiscal Years
Fiscal Special Assessment Special Assessment
Year Bi 1 1 ing s Collected
Prior to
1987 N/A N/A
1987 $ 1,000,362 996 , 884
1988 988 , 116 987,682
1989 984,718 985,207
1990 985,680 985 , 6 70
1991 986,080 760,329
1992 943.752 758.864
$ 5.888.708 5.474.636
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.
172
CITY OF CARLSBAD
Property Tax Levies and Collections
Last Ten Fiscal Years
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Fiscal Current Current Levy U &%x Lew Collec tiona Collec tel
1982-83 $ 4,631,829 4,302,746 92.9 1983-84 4 , 972,861 4,653,350 93.6 1984-85 5,565,653 5 , 170 , 614 92.9 1985-86 6,742,713 6 , 263,242 92.9 1986-87 8,077,224 7,488 , 152 92.7 198 7-88 9,368,469 8,733,089 93.2 1988-89 10,928,048 10,237,929 93.7
1989-90 12,600,253 11,816,888 93.8
1991-92 14,889,735 13 , 7529 322 92.4
1990-91 13,931,230 12,986,628 93.2
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS
DOLLARS IN YlLllONS
16
14
12
10
8
6
4
2
0
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
FISCAL YEAR
=TOTAL LEVY UAMOUNT COLLECTED
1 171
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Building Business
Fiscal Permit Percent Es t hated License Percent
Year Revenue Chanae Valuation Revenue Chanae
1982-83 $ 490,100 80.5 79,400,000 279,973 8.2
1983-84 1,068,876 118.1 198,520,304 351,875 25.7
1984-85 1,055,738 (1.2) 213,403,469 428 , 546 21.8
1985-86 1,397 9 129 32.3 263 , 548 , 719 471,470 10.0
1986-87 1,230,100 (12.0) 245,661,491 517,972 9.9
1987-88 671,779 (45.4) 127,831,606 616,278 19.0
1988-89 674,814 .5 111,898,109 696,706 13.1
1989-90 1,029,750 52.6 169,746,343 791,715 13.6
1990-91 857,717 (16.7) 163,340,462 832,432 5.1
1991-92 219,445 (74.4) 42,351,906 910,532 9.4
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
DOLLARS IN MILLIONS
-1- T- I ~ I- r-I ~ I-
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
FISCAL YEAR
INCLUDES GENERAL SPECCUL REVENUE, W3T SERVICE AND CAPITM PROJECT FUN#
Source: City of Carlsbad Comprehensive Annual Financial Reports.
170
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Total Net I Valuation hemp t ions Valuation ChanFe
Ass e s s ed Homeowner's Assessed Percentage
2,064,175,109 48,885,200 2,015,289,909 19.5
2,244,519,647 49,921,200 2,194,598,447 8.9
2,548,122,552 52,235,400 2,495,887,152 13.7
2,952,177,060 57,943,200 2,894,233,860 16.0
3,517,951,761 65,492,000 3,452,459,761 19.3
4,287,3169546 83,847,400 4,203,469,146 6.7
4,937,833,836 87 , 162,600 4,850,671,236 15.4
5,563,445,973 89,382,767 5,474,063,206 12.9
6,000,719,836 90,728,114 5,909,991,722 8.0
490149899 9694 75,650,400 3 9 939,249,294 14.1
.1 169
CITY OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Less
Secured Unsecured Propert
Exemtio Fiscal &!ax ProDer ty Progerty
1982-83 $ 2,027,411,290 50 9 604 , 897 139841 90
1983-84 2,195,611,840 57,309,394 8,401,5
1984-85 2,487,497,173 75,231,054 14,605,6
18,616,2 1985-86 2,893 , 268 , 927 77 , 524,350
1986-87 3,456,419,183 80,781,420 19 , 248,8
1987-88 3,937,879,614 98,879,688 21 , 859 , 6
1988-89 4,197,767,148 109,633,027 20,083,6
1989-90 4,813,718,827 147,696,674 23,581,6
1990-91 5,406,790,697 182,042,779 25 ,387,s
1991-92 5,823,039,810 205,094,661 27,414,6
NET TAXABLE VALUE
LAST TEN YEARS
DOLLARS IN BILLIONS
7
8
5
4
3
2
1
0
1983198419851986198719881989199019911992
FISCAL Y€AR
Source: County of San Diego Office of the Auditor and Controller.
168
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CITY OF CARLSBAD
Demographic Statistics
Last Ten Fiscal Years
City
Population Populat county Percer
Powlation (21 Qux?u Square Percent
yeah Miles &pula tion ( 11 ChanPe
1983 32.0 39,637 7.9 1,986,035 2.0
1984 32.0 40,665 4.2 2,041,362 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 2,327,657 2.5
1989 39.7 62,030 5.3 2,418,176 2.6
1990 42.2 63,451 2.3 2,509 , 914 2.5
1991 42.2 64 , 264 1.3 2,548,728 2.5
1992 42.2 65,661 2.2 2,602 , 244 2.5
1995 (Estimate) 77,310 (3) (4) 2000 (Estimate) 84,954 (3) (4)
2010 (Estimate) 100,826 (3) (4 1
(1) Source - State Department of Finance.
(2) Source - County Data Base, San Diego County.
(3) Population for City General Plan area - San Diego Association
(4)
Governments Series VI1 population forecast.
County future population estimate not available.
PO PU IATlO N
LAST TEN YEARS
IN THOUSANDS
70
60
50
40
30
20
10
0
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
FECAL YEAR
POPULATION AS OF JANUARY 1 PER
STATE DEPARTYEMT Of FINANCE
.
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WATER ENTERPRISE GROSS REVENUE
VS. DIRECT OPERATING EXPENSES
LAST TEN YEARS
DOLLARS IN MILLIONS
$1 2 CMWD included $1 0 beginning 90-91
$8
$6
$4
4 $2
$0 1983 1984 1985 1988 1987 1988 1989 1990 1991 1992
FISCAL YEAR
W GROSS REVENUE OPERATING EXPENSES
NET REVENUE AVAllABLE FOR DEBT SERVICE
LAST TEN YEARS
DOLLARS IN THOUSANDS
1983198419851986198719881989199019911992 # FISCAL YEAR
165
CITY OF CARLSBAD
Revenue Bond Coverage
Water Utility
Last Ten Fiscal Years
(2) Net Revenue
(1) Direct Avai lab 1 e
Fiscal Gross Operating for Debt Debt Service Requiremen
Year Revenue Expens e s Service PrinciDal Interest Total
1982-83 $ 1,934,415 1,945,681 (11,266) 115,000 64,492 179,492
1983-84 1,672,564 1,557,173 115,391 - (3) 56,875 56,875
1984-85 1,371,214 1,119,336 251,878 125,000 50,138 175,138
1985-86 1,522,383 1,317,953 204,430 130 , 000 42,531 172,531
1986-87 1,532,953 933,368 599,585 140,000 38,549 178,549
198 7-88 1,637,819 1,334,525 303,294 150,000 29,096 179,096
1988-89 1 , 760,102 1,195,822 564,280 157,000 21,211 178,211
1989-90 2,001,832 1,415,542 586 , 290 160,000 12,718 172,718
1991-92 11,504,798 9,520,564 1,984,234 685,000 942,163 1,627,163
1990-91(4) 11,398,343 9,172,478 2,225,865 775,000 1,088,386 1,863,386
(1)
(2) Total operating expenses including depreciation and amortization.
(3) In 1983-1984 the City began recording principal payments for the Wate
Bonds in the year they became payable. In prior years principal pay
been recorded as paid on June 30 of each year rather than July
following year.
Includes operating and non-operating revenues.
(4) Effective January 1, 1990, Carlsbad Municipal Water District (CMWD)
subsidiary district of the City. Thus all amounts have been
accordingly. Debt service requirements after that date include the In
District bonds and the Certificates of Participation issued by CMWD.
Source: City of Carlsbad Comprehensive Annual Financial Reports.
164
1.2% 6
*.a%-
0.8% -
0.6% -
0.4% -
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CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
June 30, 1992
1991-92 Total Assessed Valuation: $6,000,719,836 (after deducting $144
redevelopment tax allocation increment)
x Debt Jur
Appl ?cab le I29
Direct and Overlaming Bonded Debt:
San Diego County Building Authorities 4.817 $ 16,067
San Diego County Water Authority 4.995 904
Carlsbad Unified School District 97.167 108
Carlsbad Unified School District Authority 97.139 14 9 920
Carlsbad Unified School District Community
Facilities District 111 100.000 12,17f
San Marcos Unified School District and
Certificates of Participation 25.057 1,80f
Metropolitan Water District 0.799 5,453
San Dieguito Union High School District 8.057 101
Encinitas Union School District, Authority
and Certificates of Participation 24.171 1,19:
Mira Costa Community College District
Certificates of Participation 25.062 68:
Other School Districts Various 21
Tri-City Hospital District 32.503 46f
Palomar Pomerado Hospital District and Authority 0.731 8;
Leucadia County Water District and I.D. fl 51.523 & 1.715 161
Carlsbad Municipal Water District
Certificates of Participation 100 - 000 12,05f
Olivenhain Municipal Water District, I.D. 111 31.279 27t
City of Carlsbad 1915 Act Bonds 100.000 32.52:
$ 108.69(
(1) Includes City of Carlsbad Building and Parking Authorities and the Pub
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue
Vallecitos Water District and I.D.'s #l, 2 & 6 6.613 - 10.819 10:
City of CarPsbad Building Authorities 100.000 9,571
Total direct and overlapping bonded debt(')
Improvement Corporation.
tax allocation bonds and non-bonded capital lease obligations.
Ratios to Assessed Valuation:
Direct Debt ($9,5 75,000) 0.169,
Total Debt 1.81%
Share of Authorized and Unsold General Obligation Bonds: Metropolitan Water District ................................. $ 39
Carlsbad Municipal Water District, I.D. #l .................. $9
Carlsbad Municipal Water District, I.D. #3 .................. $ 20
$ 17 State School Building Aid Reuavable as of June 30. 1992:
Source: California Municipal Statistics, Inc.
162
CITY OF CARLSBAD
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June 30, 1992
25% of net assessed valuation (1) $ 1.477,497.93(
Debt limit (15% of net assessed valuation as adjusted) 221.624.690
Amount of debt applicable to debt limit:
Bonded debt (2 ) 21,425,000
Certificates of participation 8,090,000 I Obligations under capital leases 1.030.622
Total amount of debt applicable to debt limit 30,545.622
Legal debt margin $ 191.079.068
e
Percent of debt limit 12.93 m
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(1) Beginning January 1, 1987, a change in state law required the Count
Assessor to assess all taxable property at 100% of full value a
opposed to the prior practice of assessing property at 25% of ful
value. To be consistent with previous years, the assessed valuation use
for this computation is at 25% of full value.
(2) Total bonded debt:
Parking and Building Authorities $ 1,485,000
College Boulevard Assessment District 8,465,000
Tax Allocation Bonds 11,475,000
Total bonded debt $ 21.425.00Q
161
CITY OF CARLSBAD
Ratio of General Bonded Debt to 866WEd Valuation
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Percent of Per
Fiscal Net Assessed Outs tanding To tal Capita x!2ax Valuation (1) Principal ( 2) Va luation IkkL Povula tion (
1982-83 $ 2,015,289,869 1,030,000 0.05 26 39,037
1983-84 2,194,598,447 915,000 0.04 23 40,665
1984-85 2,495,887,152 900,000 0.03 20 44,566
1985-86 2,894,233,860 785,000 0.03 16 48,872
1986-87 3,458,3909377 6 70,000 0.02 12 55,282
1987-88 3,939,249,294 550,000 0.01 9 58,888
1988-89 4,203,469,146 420,000 0.01 7 62,030
1989-90 4,850,671,236 285,000 0.01 4 63,451
1990-91 5,474,063,206 150,000 - 2 64,264
1991-92 5,909,991,722 - - - 65,661
(1) Net assessed value is stated at 100% of market value. Data from County
(2) Library and sewer general obligation bonds per the City of Carls
(3) Population as of January 1 of each year per the State Department
San Diego Office of the Auditor and Controller.
Comprehensive Annual Financial Reports.
Finance.
RATIO OF OUTSTANDING GENERAL BONDED DEBT
TO POPULATION - LAST TEN YEARS
PER CAPITA DEBT IN DOLLARS
$30
$25 -
$20 -
$15-
$10 -
$5 -
$0
1983 1984 1985 1986 1987 1988 1989 1900 1991 1992
FISCAL YEAR
160
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Contri buti ons
Other Intergov- Charges for Fines and From Property
491 ,267 2,551,262 2,451,708 231,086 1,396,896 - 179.2
2,099,942 1,777,587 4,747,951 256,47 1 1,542,092 - 378,2
3,042,110 2,060,542 8,541,600 345,750 2,638,536 - 119.4
3,525,394 2,924,892 9,814,416 288,055 2,857,221 - 1,240,O
3,830,931 5,608,869 12,678,062 366,597 2,944,741 - 958,O
3,521,242 2,506,690 8,770,867 435,649 3,422,839 175,593 1,283,5'
3,858,173 2,876,536 7,722,568 478,830 5,644,873 4,529,710 3,158,16
4,058,540 3,267,054 io.72a.326 511,890 6,002,986 402,292 2,442,2:
3,550,013 5,405,074 10,701,989 515,746 5,737,513 16,515,962 3,677,4;
3,307,980 6,087,138 7,759,224 312,984 4,826,292 446,813 2,703,1!
ernmen tal Services Forfei ts Interest Owners Qk!!x Licenses
TRANSIENT OCCUPANCY TAX CHARGES FOR SERVICES m LAST TEN YEARS LAST TEN YEARS
DOLLARS IN MILUONS DOLLARS IN MILLIONS
14
12
8 B2 6
4
2
0 0 1 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1983 1984 imi ISM isa7 iwa isao 1990 1991
FISCAL YEAR FISCAL YEAR
159
CITY OF CARLSBAD
General Revenues by Source
Last Ten Fiscal Years
Transient Fiscal Property Sales Occupancy Other Bus.
1982-83 $ 18,314,250 4,449,196 3,974,732 797,526 1,511,333 279
1983-84 23,870,285 4,848,041 4,891,379 1 ,007,268 1,969,434 351
1984-85 31 ,272,744 5,243,124 5,726,373 1,041,947 2,084,724 428
1985-86 37,078,236 6,769,473 6,222,008 1,157,794 1,807,457 47 1
1986-87 45,626,319 8,516,463 6,487,371 1,729,998 1,987,299 51 7
1987-88 42,944,962 9,870,495 7,128,461 1,995,447 3,217,888 616
1988-89 54,565,025 11,997,603 8,186,215 2,752,025 2,663,619 696
1989-90 57,970,453 13,663,487 9,342,077 3,630,662 3,129,186 791
1990-9 1 77,371,107 14,767,693 9,426,111 3,310,043 2,931,058 832
rn Total (11 Taxes Taxes Taxes Taxes !&I
1991-92 58,440,436 15,945,319 8,723,382 3,077,595 4,340,018 910
(1)
(2)
Includes General, Special Revenue, Debt Service and Capital Projects Funds.
Included interdepartmental services category added in 1991-92 and miscellaneous revenues.
GENERAL REVENUE
LAST TEN YEARS
PROPERTY TAX AND SALES TAX RE'
LAST TEN YEARS
DOLLARS IN MILLIONS DOLLARS IN MILLIONS
100 18
16
80 14
12
60 10
8
40 6
4
20 2
0
Q FISCAL YEAR 1983 1984 is85 1986 1987 1988 1989 1990 1991 1992
PROPERM TAX FISCAL YEAR
Source: City of Carlsbad Comprehensive Annual Financial Reports.
158
TOTAL EXPENDITURES
LAST TEN YEARS
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DOLLARS IN MILLIONS
80
60
40
20
0
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
FISCAL YEAR
INCLUDES GENERAL, SPECIAL REVENUE, N3T SERVICE AND CAPITAL PROJECT NWW
SPENDING ON CAPITAL PROJECTS
LAST TEN YEARS
DOLLARS IN MIUIONS I 30
25
20
15
10 t 5
0
1983198419851986198719881989199019911992
FISCAL YEAR
1 15 7
CITY OF CARLSBAI)
General Expenditures by Function
Last Ten Fiscal Years
Fiscal General Publ i c Publ i c Culture/ Capital €wl?sb
1982-83 $ 15,463,426 2,272,174 5,285,609 2,935,279 727,155 2,573,014 1,233,048
1983-84 16,753,893 2,551,209 5,813,451 3,408,568 825,236 2,764,121 1,033,261
1984-85 22,279,729 3,008,056 7,020,105 2,974,480 860,556 3,278,290 4,619,242
1985-86 36,206,852 4,124,793 7,851,268 6,412,310 1,052,394 3,710,505 12,333,087
1986-87 49,443,365 5,645,325 9,452,556 4,601,389 1,321,504 4,530,701 23,032,106
1987-88 41,960,153 5,988,144 10,102,111 5,375,688 1,584,897 5,358,475 11,216,835 2
1988-89 55,745,009 7,139,089 11,728,140 6,336,093 1,614,015 5,808,094 19,786,724 7
1989-90 53,133,603 7,920,471 13,836,529 7,402,476 1,808,058 7,413,870 11,104,390 :
kar r.Qbull Government Safetv ---
1990-91 72,999,324 10,437,609 16,108,745 6,519.035 2,077,563 7,183,567 26,665,164 1
1991-92 53,985,119 6,324,697 15,647,112 12,810,175 2,287,271 7,301,171 5,639,898
(1) Includes General, Special Revenue, Debt Service and Capital Projects Funds.
(2) Incl udes communi ty development and uti 1 i ties and maintenance categari es added i n 1991-92
as public works expenditures.
GENERAL EXPENDITURES BY FUNCTION
1 99 1 -92
GENERAL GOVERNMENT 12% PUBLIC SAFETY 29% $6.32 $75.8
DEBTSERWCE 7% 13.97
CAPITAL PROJECTS 1
$5.64
.......... .......... ..........
UBLICWORKS 24% CULTUREfRECREATlON 14% $12.81
WELFARE 4%
$2.28
$7.3
DOLLARS IN MILLIONS
Source: City of Carlsbad Comprehensive Annual Financial Reports.
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Senior Nutrition
To account for money received and expenditures for senior programs under
Older Americans Act.
Special Benefit Districts
To account for revenues and expenditures from property tax assessments
street lighting and landscaping.
State Grants
To account for state of California grants including California Arts Cow
Artists-in-Residence, CLSA and Library Literacy.
a
@ 81
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30, 1992
Civic
Arts
Assets Prozram
Cash and investments !! 299,546
Rec e ivab le s : - Loans
Taxes
Accounts , net Accrued interest 4 , 846
- -
Due from other governments -
Prepaid expenditures -
Total assets $ 304.392
Liabilities and Fund Balance
Liabilities : Accounts payable -
Due to other governments -
Total liabilities -
- Accrued wages payable
Due to other funds -
Fund balance : - Reserved for loans receivable
Reserved for prepaid expenditures
Reserved for low and moderate income housing
Reserved for encumbrances
Unreserved :
- -
134,610
Designated for approved capital projects 121,656
Undesignated 48.126
Total fund balance 304.392
Total liabilities and fund balance $ 304.392
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Community Library Low and
Development Audio- Moderate Mort ga
Block Federal Visual Income Reveni
Grant Grants Insurance Housing Bondc
538 , 149 38 , 349 86,746 1,874 , 128 52,6r
- - 127,375 - 37 , 113 - - - - - - - - - - e
- 6 20 1,403 30,399 8: - - - - - - - - - -
53.5( 2,031,902 575,262 _38t969 88,149
- 82 1,976 - - - 999 - 6,634 - - - - - - - - - -
6.63 - - 1.081 1.976 4
37,113 - - 127,375 -
- - - 1,891,697 - - 1,327 6,452 6,196 -
- - - - -
- - I - -
538.149 36.561 79.721 - 53,5
575.262 38.962 88.149 2.031.902 x
83 (Cont ii
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet, Continued
June 30, 1992
Police
Asset Assets Forfeiture
Cash and investments $ 1,663,323
Receivables: Loans -
Taxes -
Accounts, net -
Accrued interest 26,917 Due from other governments -
Prepaid expenditures -
Total assets $ 1.690.240
Liabilities and Fund Balance
Liabilities :
Accounts payable 45
Accrued wages payable 402 Due to other funds -
Due to other governments -
Total liabilities 44 7
Fund balance : Reserved for loans receivable -
Reserved for prepaid expenditures -
Reserved for low and moderate income housing -
Reserved for encumbrances 58 , 258
Unreserved :
Designed for approved capital projects -
Undesignated 1,631.535
Total fund balance 1,689.793
Total liabilities and fund balance $ m0.240
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Section 8 Special
Aut ho ri tv
Housing Senior Benefit State
Nut r i t ion Districts Grants Total
- 244,843 1,273 1 , 312,331 359,703 6,471,040
- - 164,488
- 67,377
- - 17,846
- - 19 , 953 5,819 90,808 - 17 , 143 - - 17,143 - - 165.881 165.881
475.327 18.640 1.352.680 365.522 6.994.583
- - - 17 ,846
64,603 224 2,550
-
80,156 1,310 36,592 - 54,603
3,566 - - 283 , 143
13 , 764 43,591 5,242 15,456
8,666
279,577
33.898 - 33.898 - -
18.640 80.183 5.242 451.800
- - 164,488 - - 165,881 - 1,891,697
237 , 261 - 672 21,569 8,177
- - - - 121,652
3.961.80(
- 1.272.497 360.280 6.542.78:
6.994.58:
- - - 165,881 - - -
.(572) 1.250.928 352.103 ( 28.151 1
137.730
475,327 18.640 1.35 2.680 365.522
See accompanying independent auditors' report.
85
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance
For the year ended June 30, 1992
Civic
Arts
Program
Revenues :
Taxes $- - Intergovernmental
Charges for services
Interest income
-
17,108 - Mis ce 1 laneous
17.108 Total revenues
Expenditures: - General government
Public works
Welfare
Culture and recreation 37.013
Total expenditures 37.013
Excess (deficiency) of revenues
- -
over expenditures (19,905)
Other financing sources (uses):
560 Operating transfers in
Operating transfers out -
560, Total other financing sources (uses)
Excess (deficiency) of revenues
and other financing sources over
expenditures (19,345 )
Fund balance (deficit) at beginning of year
Residual equity transfers in
Residual equity transfers out
Fund balance at end of year
323,737 - -
$ 304,392
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Low and Community Library
Development Audio- Moderate Mortg
Block Federal Visual Income Revel
Grant Grants Insuranc 9 Hous ins rn
- - - 317,673 - - 86,873 - - - - - 57,838 - -
21 , 850 2,554 5,091 107 , 275 3 ,O€ - - - - -
21.850 89.427 62.929 424.948 3,oc
- - - 98,113 -
- 70,508 58.232
- - - - - - - - - - - -
21,850 18.919 4.697 326.835 3.01
- - - - - - - - - -
- - - - -
21 , 850 18,919 4,697 326,835 3 ,o
553,412 20,853 81,476 1 , 698,433 50,4 - - - - - - Lum ) - - - -
575.262 37,888 86,173 - m
87 (Con tin
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Jhpenditures and
Changes in Fund Balance, Continued
For the year ended June 30, 1992
Police
Asset
Forfeiture
Revenues ! - Taxes $
Charges for services - Intergovernmental 1,752,509
Interest income 96,203 Miscellaneous -
Total revenues 1.848.712
Expenditures:
General government 342,002 Pub 1 ic works -
Welfare -
Culture and recreation -
Total expenditures 342.002
Ekcess (deficiency) of revenues
over expenditures 1.506.710
Other financing sources (uses):
Operating transfers in -
Operating transfers out -
Total other financing sources (uses) -
Excess (deficiency) of revenues
and other financing sources over
expenditures 1,506,710
Fund balance (deficit) at beginning of year 183,083 Residual equity transfers in -
Residual equity transfers out -
Fund balance at end of year $1.689,793
88
1
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t
I
I
I 2.114.753 172.518 1.257.859 174,518 4,325.5
8
4
a
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1
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1
I
Section 8 Special
Housing Senior Benefit State
Grants Tots I Authori tv Nutrition Districts
- - - - 317,6'
2,079,819 103 , 246 - 153,800 4,176 , 21
1,616,8 - - 1,558,974 340 , 8.
119.3( 10 , 297 44,212 69.272 5.876
- - 57 , 787 19 , 606 -
2.134.328 172.518 1,622.637 173.406 6.570,9
- - - - 440,l
2 , 287 , 2
174.518 340.2
1,257,8 - - - 1,257,859 - - 2,114,753 172,518 - - -
19.575 - 364.778 (1.112) 2.245.4
- 5 - - - - - - - -
5 - - - -
- 364,778 (1,112) 2,245 , F
360 , 460 4,297,i 907 , 719 - - - 932 s - - - - A
19,575
118 , 155 -
6,542. ; 137.730 - 1.272.497 360.280
See accompanying independent auditors' report.
89
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
For the year ended June 30, 1992
Civic Arts Program
Actual on Variance
Budgetary Favorab 1 e
BudFe t Basis (Unfavorable)
Revenues : - - - - - - Taxes $ In t ergovernmen tal Charges for services -
Interest income -
Miscellaneous 562 - (562)
- -
17 y 108 17 y 108
16.546 To tal revenues 562 17.108
Expenditures: - - General government -
Public works -
We1 f are - - -
Culture and recreation 294.237 171,623 122,614
171.623 122.614
- -
Total expenditures 294.237
Excess (deficiency) of
revenues over
expenditures $ (293.675) (154.515) 139,160
90
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1:
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II
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Communitv Development Block Grant Federal Grants
Actual on Variance Actual on Variance
Budgetary Favorable Budgetary Favorable
Budget Bas is (Unfavorable) Budget Basis (Unfavorabl
- - - - - - - - - 42,330 86,873 44 , 543
- 21 , 850 21 , 850 1,500 2,554 1,054
- - - - - -
- I - - - -
21,850 21.850 43.830 89.427 45.597 -
- - - - - - - - - - - - - - - - - - - - - 111.944 71,835 40.109
- - - 111.944 71,835 40,109
85,706 21,850 21.850 (68.114) 17,592 -
91 (Conti
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
For the year ended June 30, 1992
Librarv Audio-visual Insurance
Actual on Variance
Budgetary Favorable
l3ud€s& Basis lUnf avorable)
Revenues : Taxes $- - -
Intergovernmental -
Charges for services 65,000 57,838 (7,162)
Interest income 2,500 5,091 2,591 Miscellaneous -
- -
- -
67,500 62,929 (4,571) Total revenues
Expenditures: - - General government -
Public works - - -
Welfare -
Culture and recreation 66.454 64.684
- -
1.770
Total expenditures 66,454 64.684 1.770
Excess (deficiency) of
revenues over
expenditures $ 1.046 (1.755 1 (2.801)
92
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Low and Moderate Income Housing Police Asset Forfeiture
Actual on Variance Actual on Variance
Budgetary Favorable Budgetary Favorable
Budget Bas is (Unfavorable) Budget Bas is (Unf avorabl
(42,327) - - -
225 , 000 1,752,509 1,527,509 - 317,673 - 360 , 000 - - - - - - -
70 , 000 107,275 37,275 9,000 96 y 203 87 y 203 - - - - - -
430.000 424.948 lS.052) 234,ooo 1.848.712 1.614.712
98,113 104 , 309 (6,196) 500,509 400 y 260 100 , 249 - - - - - - - - - - - - - - - - - e
98.113 104.309 (6.196) 5oo.509 400.260 100.249
331_,887 320.639 (1 1.248) (266 .SO91 1,448,452 1,714,961
93 (Conti
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
For the year ended June 30, 1992
Section 8 Housing Authority
Actual on Variance
Budgetary Favorable
Budget Basis (Unfavorable 1
Revenues : - - - Taxes $
Charges for services - - - Intergovernmental 2 , 096 , 006 2,079,819 (16,187)
Interest income 15,000 10,297 (4 , 703)
Miscellaneous - 44.212 44.212
Total revenues 2.111.006 2.134.328 23.322
Expenditures:
General government - - -
Public works - - -
Welfare 2 , 289,439 2,114,753 174,686 Culture and recreation - - -
Total expenditures 2.289.439 2.114.753 174.686
Excess (deficiency) of
revenues over
expenditures $ (178.433) 19,575 198.008
94
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II
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1
II
I
Senior Nutrition Special Benefit Districts
Actual on Variance Actual on Variance
Budgetary Favorable Budgetary Favorable
( Un f avo rab 1 e Basie Basis (Unf avorab le 1 Budne t Budnet
- - - - - -
156,913 103,246 (53,667) - - - - - - 1,730,200 1,558,974 ( 171,226 ) - - - 19,200 57,787 38,587
75.000 69.272 (5.728) 1,000 5.876 4.876
231.913 172.518 (59.395) 1.750.40Q 1.622.637 (127.763)
- - - - - - - - - 2,010,247 1,279,428 730,819
178,865 173,190 5,675 - - -
178.865 173.190 5.675 2.010.247 1,279,428 730,819
- - - - - -
603.056 53,048 (672) (53.720 1 ( 259.847 ) 343.209
95 (Contir
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
For the year ended June 30, 1992
State Grants
Actual on Variance
Budgetary Favo rab 1 e
Budget Basis (Unfavorable 1
Revenues :
Taxes $- - -
Intergovernmental 202 , 600 153 , 800 (48,800)
Charges for services - - -
Interest income 5,000 19,606 14,606
Miscellaneous - - -
Total revenues 207.600 173.406 (34.194)
Expenditures:
General government - - -
Public works e - -
Welfare - - -
Culture and recreation 202.267 182.695 19.572
Total expenditures 202.267 182.695 19,572
Excess (deficiency) of
revenues over
(14.622) expenditures $5.333 ( 9 289 )
96
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1
I
8
8
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0
1
1
1
Total
Actual on Variance
Budgetary Favo rab 1 e
Budget Basia (Unfavorable)
360 , 000 317 , 673 (42,327 1
2,722,849 4,176 , 247 1,453 , 398
1,795,200 1,616,812 (178,388) 337 , 771 215,571
76.56 2 119.360 42.798
5.076.811 6.567-863 1.491.052
122,200
598,622 504,569 94,053
2,010,247 1,279,428 730,819
2,468 , 304 2,287,943 180,361
184.065
4.562.777 1.189.298
674.902 490 837
5.752.075
(675. 264) 2.005 I 086 2,680.350
See accompanying independent auditors' report.
97
98
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I 99
I DEBT SERVICE FUNDS
Building Authoritv
To account for receipts received by the Building Authority from the Gene:
Fund for payment of debt service on the 1967 Building Authority Revenue Bond:
College Boulevard
To accumulate property assessments levied for payment of debt service on 1'
College Avenue Assessment District Bonds.
HOSD Grove COPS
To account for payment of debt service on the 1988 Certificates
Participation issued to purchase Hosp Grove.
Library Bonds
To accumulate property taxes specifically levied for payment of debt sen
on the 1966 Library General Obligation Bonds. These bonds were paid in 1
during fiscal year 1992.
ParkinP Authoritv
To account for receipts received by the Parking Authority from the Gene
Fund for payment of debt service on 1969 and 1981 Parking Authority Revc
Bonds.
RedeveloDment Bonds
To account for payment of debt service on 1988 Tax Allocation Bonds issue1
finance improvements for the Carlsbad Redevelopment Agency.
Sewer Bonds
To accumulate property taxes specifically levied for payment of debt ser
on the 1962 Series B and C Sewer General Obligation Bonds. These bonds
paid in full during fiscal year 1992. 1
CITY OF CARLSBAD
Debt Service Funds
Combining Balance Sheet
June 30, 1992
Building College
Assets Author i tv Boulevarc
$ 113,411 1,307,115
Taxes - 3 25 Accrued interest 236 21.152
Total assets $ 113.647 1.328.592
Cash and investments
Receivables:
Liabilities and Fund Balance
Liabilities :
Accounts payable - -
Deferred revenue - -
Total liabilities - -
Fund balance - reserved for debt service 113.647 1.328.592
Total liabilities and fund balance $ 113.647 1.328.5 92
100
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8
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I 995.3 72 ziUs.2 1.75 7.057 4.949.527
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i
Hosp Grove Parking Re deve 1 o pmen t COPS Author i tv Bonds To tal
964,918 738,755 1 , 738,588 4,862,787
- - 3 25
-18.469 86.415 -
30.454 16.104
995.3 72 754.859 1.757.057 4.949 327
2 , 000 - - 2 , 000 43.500
45.500
- - 43.500
2.000 43.500 -
993.3 72 711.359 1.757.057 4.904.027
See accompanying independent auditors' report.
101
CITY OF CARLSBAD
Debt Service Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance
For the year ended June 30, 1992
Building College
Authori tv Boulevarc
Revenues :
Taxes $- 813,195 Interest income 6.043 60.475
Total revenues 6.043 873.670
Expenditures:
Debt service:
Principal retirement 30,000 300 , 000 Interest and fiscal charges 7.597 676,315
Total expenditures 37.597 976.315
(31.554) (102.645) Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Operating transfers in 36,000 - Operating transfers out - -
Total other financing sources 36,ooo -
Excess (deficiency) of revenues and
other financing sources over
expenditures and other financing uses 4,446 (102,645)
Fund balance at beginning of year 109,201 1,431,237
Residual equity transfers in - -
Residual equity transfers out - -
Fund balance at end of year $ 113.647 1.328.592
102
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Hosp Grove Library Parking Redevelopment Sewer
Bonds Bonds Tota 1 cops Bonds Author i t v
- 9 9 770 - 1,270,6 90 22,487 2,116,l
(2.775) 345.c
19.712 2,461.1
151.551
77.335 9.878 52.303 1.422.241
77.335 10s 52.303
250 , 000 25 , 000 175,000 270 , 000 125 , 000 1 , 175 ,(
2.269 2.799.' 627.450 1.639 120.468 1.364.057
877.450 26.639 295.468 1.634.057 127.269 3.974.
(800,115) (16.761) (243.165) (211.816) (107.557) (1.513.(
378,879 - 174,000 1 , 125 , 238 - 1,714, - - (1 -155 a038 1 - ( 1.227. (72.909)
305.9 486 a I 70 - 174.000 (29.8001 -
(494,145) (16,761) (69 , 165 ) (241,616) (107,557) (1,027,
1 , 487 , 51 7 17,330 780,524 1,158,823 109,785 5,094,
- - - 839,850 - 839 ,
(2.228) (2,
- 4.904,
- - (569) -
711.359 1.75 7.057 993.372 -
See accompanying independent auditors' report.
103
CITY OF CARLSBAD
Debt Service Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
For the year ended June 30, 1992
Library Bonds Redevelopment Bonds
Actual on Variance Actual on Vari,
Budgetary Favorable Budgetary Favor
BudFet Basis (Unfavorable) Budget Bas is (Unf avc
Revenues :
Taxes $ 9,008 9,770 762 1,440,000 1,270,690 (169,
Interest income 300 108 (222) 240.000 151.551 (88,<
Total
revenues 9.3089.878 570 1.680.000 1.422.241 (257.
Expenditures :
Debt service :
Principal
Interest and
retirement 25,000 25,000 - 270,000 270,000 -
fiscal
charges 1.424 1.639 (215) 1.364.019 1,364.057 (
Total
expenditures 26.424 26.639 (215) 1.634.019 1.634.057 (
Excess
(deficiency) of
revenues over
45,981 (211,816) (257.7 expenditures $ (17,116) (16.761) 222
104
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1 21.502 19.712 (1.790) 1.710.810 1.451.831 (258.979)
1
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1
8
I
Sewer Bonds Total Actual on Variance Actual on Variance
Budgetary Favorable Budgetary Favorable
Budget Basis (Unfavorable) Budpe t Basis -
20,502 22,487 1,985 1,469,510 1,302,947 (166,563) 1 1 .ooo (2.775 ) (3.775 1 241.300 148.884 (92.416)
- 420,000 420 , 000 125,000 125,000 -
3.269 2,269 1,ooo 1.368.712 1.367.965 747
128.269 127.262 1.000 1.788.712 1.787.965 747
(106.767) (107.557) (790) ( 77.902 ) (336.134) (258.232
See accompanying independent auditors' report. I 105
CAPITAL PROJECTS FUNDS
Assessment Districts
To account for capital projects financed by the issuance of assessmen
district bonds.
Bridge and Thoroughfare
To account for receipt of fees charged to developers in the bridge ant thoroughfare district, All projects are now being accounted for through thc
Community Facilities District Fund (CFD). All funds have been transferred tc
the CFD in fiscal year 1991-92 as all bridge and thoroughfare projects will bc
constructed by the CFD.
Capital Construction
To account for transfers from the General Fund for various municipal capital
projects.
Community Development Block Grants
To account for federal block grants for community development.
Communitv Facilities District
To account for capital projects financed by Community Facility District
(Mello-Roos) funding.
Countv AirDort Road Project
To account for receipt of San Diego County funds for improvements adjacent to
McClellan-Palomar Airport.
Gas Tax
To account for receipts and expenditures of money apportioned under Streets
and Highways Code Section 2105, 2106, 2107 and 2107.5 of the state of
California.
Park Development
To account for receipts of fees charged to developers for park acquisition and
development.
106
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Planned Local Drainage Facilities
To account for receipts of fees charged to developers for drainage faciliti I necessitated by growth,
Public Facilities Construction
To account for receipts of fees charged to developers for specific capit;
projects necessitated by growth.
Redevelopment Area I1
To account for the costs of a feasibility study on establishing a secoi
redevelopment area.
Redevelopment Bond Project
To account for capital projects financed by 1988 Carlsbad Redevelopment Agen
Tax A1 loca t ion Bonds e
I Redevelopment Project
I To account for financial resources segregated for the rehabilitation (
commercial and public property located in the Carlsbad Village area.
Sales Tax/TransNet
To account for receipts of County sales taxes allocated by the San Diel
County Regional Transportation Commission to finance transportation projects.
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E
I
State Grants
To account for capital projects financed by state grants including Loci
Transportation Funds, Carrillo Ranch and Carlsbad Boulevard Shore Protection.
Traffic Impact
To account for receipts of fees charged to developers for street constructic
and improvement.
m
I 10 7
CITY OF CARLSBAD
Capital Projects Funds
Comb:n:ng Balance Sheet
June 30, 1992
Assessment
Assets Districts
Cash and investments $ 3,935,706
Receivables : Taxes -
Accounts , net -
Accrued interest 30,677 Due from other governments -
Advances to other funds -
Total assets $ 3.966.383
Liabilities and Fund Balance
Liabilities :
Accounts payable 7,100 Accrued wages payable -
Due to other funds -
Advances from other funds -
Deposits payable -
Deferred revenue -
Total liabilities 7.100
Fund balance (deficit): Reserved for advances to other funds -
Unreserved:
Reserved for encumbrances 188,775
Designated for approved capital projects 2,126,074 Undesignated 1.644.434
Total fund balance (deficit) 3.959.283
Total liabilities and fund balance $ 3.966.383
108
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Count
Airpo
Capital Development Facilities Road
Construction Block Grants District Projec
2,676,884 - 7,201,802 801 , 46
Community Community
- 11 , 263 - - - - 28,674 -
- 117 , 178 12,96 - - 214,425 - - - - 1.993.000 -
4.698.558 214.425 7.330.243 814.42
- 15,698 8,840 137,117 - 5 45 - - - 205 , 040 - -
- - 469,575 -
15.698 214.425 606.692 -
- - - -
- - - -
- - 1 , 993,000 - - 358,697 85,117 657,874
1,185,682 - 507,663 399,89
1.145.481 (85,117) 5.558 .O 14 414.53
- 6.723.551 814.42 4.682.860
4.698.558 214.425 7.330.243 814.42
109 (Con t inuc
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet, Continued
June 30, 1992
Park
Assets Gas Tax Develoumen
Cash and investments $ 1,974,771 3,206,122
Receivables : - - Taxes Accounts, net - -
Accrued interest 31 , 954 51,871
Due from other governments - -
Advances to other funds - -
Total assets $ 2,006.722 3.25 7.993
Liabilities and Fund Balance
Liabilities :
Accounts payable - -
Accrued wages payable - -
Due to other funds - -
Advances from other funds - 3,050,000 Deposits payable - -
Deferred revenue - -
Total liabilities - 3.050 .OOO
Fund balance (deficit): Reserved for advances to other funds - -
Reserved for encumbrances 2,513 -
Unreserved : Designated for approved capital projects 913 -
Undesignated 2.003.299 207.993
Total fund balance (deficit) 2.006. 7 25 207,993
Total liabilities and fund balance $ 2.006.725 3.257.993
110
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Planned
Drainage Facilities Redevelopment Redeve lo pmer
Facilities Construction Area I1 Bond Projec
2,679,387 8,941,854 33,964 2,820,469
Local Public
- - - - - - - -
43,355 144,312 550 - - - - -
0 0 I 500.000
2.722.742 9.586.166 34.514 2.820.469
22 55,491 2,513 10 - - - - - - - -
300,000 950,000 30,000 - - - - - - - - -
300.022 1.005. 491 32.513 10
- 500,000 - - - 183,332 27,487 186,153
1,119,937 7,257,326 - 2,582,808
1.302.783 640.017 (25.486) 51.498
2.422.720 8.580. 6 75 2.001 2.820.459 I 2.722.742 9.586.166 34.514 2.820.469
111 (Continue
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet, Continued
June 30, 1992
Redeve lo pmer
Assets Proiect
Cash and investments $ 811,808
Receivables : Taxes -
Accounts, net -
Accrued interest 4,930 Due from other governments -
Advances to other funds -
Total assets $
Liabilities and Fund Balance
Liabilities :
Accounts payable 8,980
Accrued wages payable 4,637 Due to other funds -
Advances from other funds 7,460,785
Deposits payable -
Deferred revenue -
Total liabilities 7.474.402
Fund balance (deficit): Reserved for advances to other funds -
Reserved for encumbrances 98,620
Unreserved :
Designated for approved capital projects -
Undesignated (6.756.284
Total fund balance (deficit) (6.657.664
Total liabilities and fund balance $ 816,738
112
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Sales Tax/ State Traffic
TransNe t Grants Impact Total
958,534 243,502 3,048,052 39,334,3:
- 11 , 26 - 28,67
15 , 503 4,012 49 , 464 506,77 - 139 , 729 - 354,15
2.493 .OO
- - - -
- - -
974.037 387.243 3.09 7.516 42.728.18
1,396 2,102 26,209 265,47 - 5,18 - 139,729 - 344 , 76
1,043,000 12,833,78
- - 469,57
20.400 160.24
1.396 281.677 1.089.609 14.079.03
- -
- - -
139.846 -
2,493,OO I 29,093 23,553 152,936 1,994 , 15
943 , 548 22 , 603 1,854,971 18,001,41
59.410 - 6.160.57
972.641 105.566 2.007.907 28.649.14
974.037 387.243 3.097.516 42.728.18
- - -
-
See accompanying independent auditors' report. i 113
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
For the year ended June 30, 1992
Ass e s smen t Bridge and
Districts Thoroughf arc
Revenues : - - - - Taxes $
In t e rgove rnmen t a1
Charges for services
Interest income Contributions from property owners 188,970
Miscellaneous 313,572
- -
189,252 - - -
691.794 - Total revenues
Expenditures:
Current : 17,737 -
343.092 -
360.829 -
General government
Capital outlay
Total expenditures
Excess (deficiency) of revenues over 330.965 - expenditures
Other financing sources (uses) : - - Operating transfers in Operating transfers out - (2,492.595:
- (2.492.595 Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over expenditures and other financing uses 330 , 965 (2,492,595
3 , 626,433 2,492,595
1,885 -
Fund balance (deficit) at beginning of year
Residual equity transfers in
Residual equity transfers out
Fund balance (deficit) at end of year
- -
- $ 3,959.283
114
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I 15.692 - - -
I
I 384.613 217.314 826.761 -
1
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Comun i t y Community County Airpor
Capital Deve 1 opmen t Facilities Road
Construction Block Grants District Project
- - 2,129,140 - - 313,479 - 157,499 - - 215 , 294 -
1,634 - 379,261 50,870
247,325 - 10,518 -
264.651 313.479 2,734,213 208.369
- 96 , 165 44,274 -
384,613 313,479 871.035 -
(119.962) - 1.863.178 208.369
11,200 - 6,112,932 - - (4 -518 -593 1 - (940.336 1
(4.507 393 1 - - 5,172.596
(4,627,355 1 - 7,035,774 208,369
9,310,215 - (312,223) 606,059
- - - -
4,682.860 - 6.723_.551 814.428
I 115 (Continue
CITY OF CARLSBAD
Capital Pro,jects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance, Continued
For the year ended June 30, 1992
Park
Gas Tax Developmeni
Revenues :
Taxes $ 1,099,184 -
Intergovernmental - -
Charges for services - 334,543
Interest income 79,429 190,636
Contributions from property owners - -
Miscellaneous - -
Total revenues 1.178.613 5 25.179
Expenditures:
Current :
General government - -
Capital outlay 140.004 8.230
Total expenditures 140.004 8.230
Excess (deficiency) of revenues over
expenditures 1.038.609 516.949
Other financing sources (uses):
Operating transfers in - -
Operating transfers out (875 .OOO) -
Total other financing sources (uses) (875 .OOO> -
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses 163,609 516 , 949
Fund balance (deficit) at beginning of year 1,843,116 (308 , 956 ;
Residual equity transfers in - -
Residual equity transfers out - -
Fund balance (deficit) at end of year $ 2,0006,725 m
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Local Public
Drainage Facilities Redevelopment Redevelopment
Facilities Construction Area I1 Bond Project
- - - - - - - -
528,470 297,526 - -
141,693 513 , 689 1 9 983 138,070 - - - b -
670.163 811.215 1.983 138.07Q
- - 2,513 3,553
58.294 1,549.523 - 564,492
58.29b 1,549,523 2,513 568.04%
611.869 (738.308) (530 1 (429.975)
- - - - - ( 2.202.50Q) - -
- - (2 q 202 300) -
611,869 (2,940 , 808 ) (530) (429,975 1
1,810,851 11,521,483 2,531 3 , 250,434
- - - -
- - - -
2.422.720 8.580.675 2.001 2.820,459=
117 (Cont inuec
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Ekpenditures and
Changes in Fund Balance, Continued
For the year ended June 30, 1992
Redevelopment Sales Ta
Project TransNe t
Revenues : - - - 1,164,OOC Intergovernmental
Charges for services Interest income 53,512 51 , 286
Contributions from property owners
Miscellaneous
Taxes $
- -
- - - -
Total revenues 53.5 12 1.215.286
Expenditures :
Current : General government 650,935 -
Capital outlay 25,002 941.181
Total expenditures 675.93 7 941.181
Excess (deficiency) of revenues over expenditures (622.425 ) 274.105
Other financing sources (uses): Operating transfers in 29 , 800 -
Operating transfers out - -
29.804 - Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses (592 , 625 ) 274,105
Fund balance (deficit) at beginning of year (5,225 , 189) 698,536
Residual equity transfers in - -
(839.850) - Residual equity transfers out
Fund balance (deficit) at end of year $ (6,657,664) 972,641
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State Traffic
Grants ImDac t Total
- - 3,228 , 324 ’
275 , 913 - 1,910,891 ’ - 203,891 1,579,724 ’
18 , 280 178,552 1,988,147 ’ - - 446,813 ’ I - - 329.264 ’
294.193 382.443 9.483.163
- - 815,177 ’
407.849 173.543 5.639,898/
407.849 173.543 6.455.075
(113.656) 208.90 0 3.028.088
6,442 - 6 , 160 , 374 - (477.500) (11.506.5 24 1
6.442 (477.500) (5.346.150)
(107 , 214) (268 , 600) (2,318,062)
48 , 186 2,276,507 31,640,578
170 , 973 - 172,858 I (6.379) - (846,229)
105.566 m. 907 28,649,145
See accompanying independent auditors’ report.
119
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I EUEXPEISE l'Ul@S
Carlsbad Municipal Water District
To account for the operation, maintenance, planning, capital facili
financing, and all customer service functions of the Carlsbad water system.
Golf Course
To account for revenues, expenses and the construction activities of t
City's proposed municipal golf course.
Sewer I To account for the operation and maintenance of the City's sewer system.
Solid Waste
To account for revenues and expenses of the City's solid waste sourc
reduction and recycling programs.
CITY OF CARLSBAD
Enterprise Funds
Combining Balance Sheet
June 30, 1992
Car lsbad
Municipal
Assets Water District Golf Course
Current assets :
Cash and investments $ 16,771,214 1 , 252 , 018
Rece ivab 1 e s :
Accounts, net 2,239,462 -
Due from other funds - -
Inventory 429.914
Accrued interest 340,804 20,266
-
Total current assets 19.781.394 1.272.284
Restricted assets:
Cash and investments 2 , 442,216 -
Accrued interest - -
- Total restricted assets 2.442.216
Property, plant and equipment:
Land, water rights, rights-of-way 1 , 909,565 20,785
Buildings and improvements 7,028,010 -
Wells, reservoirs and dams 17,324,133 -
Sewer, sewer lines and wells - -
Sewage treatment facility - -
Equipment and vehicles 1,689,221 -
Construction in progress 1.521.370 757.326
- Transmission and distribution lines 26,566,350
Total property, plant
and equipment 56,038,649 778,111
Less accumulated depreciation (9.559. 791) -
Property, plant and equipment, net 46.478.858 778.111
Total assets $ 68.702.468 2,050.395
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Sewer Solid Waste Total
13,828,444 95,677 31,947,353
- - 2 , 239,462
227,871 2 , 903 591,844
174 , 781 - 174,781 I 13.597 - 443.511
14.244.693 98.580 35.396.951
4,141 , 952 - 6,584,168
13.072 - 13.07 2
4.155.024 - 6.5 97.240
227 , 250 - 2,157,600
- - 17,324,133 - - 26,566,350
23,516,855 - 23,516,855
31,036,678 - 31,036 , 678
436 , 338 - 2 , 125 , 559
1.499.707 - 3 778.403
8 3 698 9 947 1,670,937 -
m
- 115 , 204 , 525 58,387,765
(8.7 53.543) - (18.313.334)
49.634.222 - 96.891.191
68,033,939 98.580 138.885.382
1 123 (Continue
CITY OF CARLSBAD
Enterprise Funds
Combining Balance Sheet, Continued
June 30, 1992
Car lsbad
Municipal
Liabilities Water District Golf Cours
Current liabilities: Accounts payable $ 701,755 503
Accrued wages payable 248,533 -
Accrued interest payable 142,734 -
Due to other funds 174,781 -
Current portion of long-term debt 685,000 -
Deposits payable 135.044 -
Total current liabilities 2.087.847 503
Current liabilities payable from
i-estricted assets - accrued interest payable - -
- - Deferred revenue
Certificates of participation, net of unamortized issuance costs of $347,230 11,022,770 -
Installment purchase agreement - -
Total liabilities 13.110.617 503
Fund equity:
Contributed capital 38,656,024 1,859 , 990
Retained earnings: Reserved for debt service 1,523,537 -
and other 1 , 005,216 -
Unreserved 14.407.074 189.90 2
Total fund equity 55,591.851 2.049.892
Total liabilities
Reserved for rate stabilization
and fund equity $ 68.702.468 2.050.395
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Sewer Solid Waste Total
201 , 343 11,679 915,280
36,072 - 284,605 - - 142,734 - - 174,781 - - 685,000 I 103.900 - 238.944
2.441.344 341.315 11.679
351.855 - 351.855
2,070,778 - 2,070,778
- - 11,022,770
12.689.800 - 12.689.8 00
15.453.748 11.679 28.576.547
34,971,412 - 75,487,426
825,630 - 2,349,167
- - 1,005,216
16.783.149 86.901 31.467.026
52.580.191 86.901 110.308.835
68.033.939 98.580 138. $85.382
See accompanying independent auditors' report. I 125
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings
For the year ended June 30, 1992
Carl sbad
Munic ipa 1
Water District Golf Cours
Operating revenues:
Water sales $ 7,911,918 -
Sewer service charges - -
Other charges for services 451,437 -
Fac i 1 i ties revenue 999,547 -
Miscellaneous 16.133 -
Total operating revenues 9.379.035 -
Plant operations - -
Purchased water 4,596,062 -
Depreciation and amortization 1 , 124,838 -
General and administrative 3.799.664 -
Operating expenses:
- Total operating expenses 9.520.564
Operating income (loss) (141.529) -
Nonoperating revenues (expenses):
Interest income 1,339,835 60,537
Interest expense and fees, net of capitalized interest (894 , 385 ) -
Loss on disposal of assets (8,294) -
Property tax and rent 785 , 928 -
Miscellaneous income (expense) (83,506) -
Amortization of issuance costs (26.710 ) -
Total nonoperating
revenues , net 1.112.868 60,537
Net income 971 , 339 60,537
Retained earnings at beginning of year 15,980,488 129 , 365
Residual equity transfers - out
Retained earnings at end of year $ 16.935.827 L89.902
- (16,000)
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- - 7 , 911 , 918’,
3,844,265 - 3,844,265
1 , 226 39 , 244 491,907
419.563
4.248.921 39.244 13.667.200
- - 999,547 ’
1,845 , 970 - 1,845 , 970 - - 4,596 , 062
1,078,157 - 2 , 202 , 995
1,152,732 100 , 884 5 a053 , 280
172.062 (61.640) (31.107)
821,497 10 , 916 2 , 232,785
- - (894,385)
- - 785 , 928 - 120 , 213 36 , 707 - - (26.710)
(2,436,051) - (2 , 444 , 345 )
(1.614.554) 131.129 (310.020)
(1,442,492) 69,489 (341,127)
19,076,271 17,412 35,203,536 - (41,000) (25,000 1 - 86.901 34,821,409
See accompanying independent auditors’ report.
127
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Cash Flows
For the year ended June 30, 1992
Car lsbad
Muni c ipal
Water District Go 1 f Cours
Cash flows from operating activities:
Adjustments to reconcile operating
Operating income (loss) $ (141,529) -
income (loss) to net cash provided
by operating activities: Depreciation and amortization 1,124,838 -
Decrease in receivables 489 , 175 -
due to/due from other funds 187,480 -
Decrease in due from other governments - -
Increase in inventory (120,705) -
Increase in accrued wages payable 218,816 -
Increase (decrease) in advances and
Increase (decrease) in accounts payable (1,160,796) (10,751
Net cash provided by (used in)
operating activities 597.279 (10.751,
Cash flows from noncapital financing activities - property taxes and rent received 785.928 -
Cash flows from capital and related
financing activities:
Purchases of property, plant and equipment (809,080) (147,850:
Loss on disposal of assets 8,294 -
Principal payments on bonds (685,000) -
Interest and other fees paid on bonds (942 , 163 ) -
Contributions to other funds (16,000) -
Contributions from other governments - -
Decrease in deposits payable (6,017) -
Miscellaneous expense (83,506) -
Proceeds from capital contributions 416.399 329.800
Net cash provided by (used in)
capital and related
financing activities (2.117.073) 181.950
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Sewer Solid Waste Total
172,062 (61,640) (31,107)
1,078 , 157 - 2 , 202,995 1 2 , 205 - 491 , 380
(14,094) (83 , 731) 89 , 655
83 , 450 83,450 -
(364) - (121,069)
186,818 (83,390) (1,068,119)
19.590 - 238.406
1.444.374 (145,311) 1.885.591
- - 785.928
(6,047,502) - (7,004,432)
2,436,051 - 2,444 , 345 - - (685,000)
(1,792,118)
(25,000) - (41,000) - 120,213 120 , 213
(103,624) - (109 , 641) - - (83,506)
(849 , 955) -
292.061 - 1,038,260
(4,297.969) 120.213 (6,112,879)
129 (Continue
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Cash Flows, Continued
For the year ended June 30, 1992
Carlsbad
Municipal
Water District Golf Cours
Cash flows from investing activities:
Net decrease in restricted investments $ 862,186 -
Decrease in deferred compensation payable (1,101,849) -
Decrease in deferred compensation investments 1,101,849 -
Interest on investments 1.121.253 58.480
Net cash provided by
investing activities 1.983.439 58.480
Net increase (decrease) in cash
and cash equivalents 1,249,573 229,679
Cash and cash equivalents at beginning of year 16.514.028 1.022.339
Cash and cash equivalents at end of year $ 17,763,601 1,252,018
Supplemental schedule of noncash investing
and financing activities - capital assets contributed by contractors $ 1.687.360 -
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Solid Waste Total Sewer
2,519,196 - 3 , 381 , 382 - - (1,101,849) - - 1,101,849 1.069.775 9.986 2.259.494
3.588.971 9.986 5.640.876
735,376 (15,112) 2,199,516
13.093.068 110.789 30,740.224
_95.67_2 32.939. 740 13.828.444
2 .OOO .936 313.576 -
See accompanying independent auditors' report. 1 131
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I I"AL SERVICE FUNDS
Central Garage
To account for charges to other funds to provide fleet maintenance a
replacement.
Data Processing
To account for charges to other funds for data processing services.
General Liability Self-Insurance a
To account for charges to other funds to insure for liability claims again I the City.
Health Insurance
To account for charges to other funds and from employees to provide heal1
insurance for full-time City employees.
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Workers' Compensation
To account for charges to other funds to insure against Workers' Compensatic
claims.
133
CITY OF CARLSBAD
Internal Service Funds
Combining Balance Sheet
June 30, 1992
Assets Central Garag
Current assets: Cash and investments $ 2,030,948
Receivables :
Accounts, net 6,417
Accrued interest 35 , 136
Inventory 81,631
Total current assets 2.154.132
Property, plant and equipment: Equipment and vehicles 3,868,052
Less accumulated depreciation (1,831,100)
Net property, plant and equipment 2.036.952
Total assets $ 4.191.084
Liabilities and Fund Equitv
Current liabilities : Accounts payable 59,802
Accrued wages payable 26 , 299 Estimated claims payable -
Total current liabilities 86.101
Fund equity:
Contributed capital - contributed from other funds
Retained earnings - unreserved
2,549,475
1.555.50 8
Total fund equity 4.104.983
Total liabilities and fund equity $ 4,191.084
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General Liability Health Workers '
P roces s inq Self-Insurance In sur an c e Compensation Total
Data
625,201 2,658,193 1,515,377 2,004,162 8,833,8$
29 - 6,4r
10 , 114 43,011 24,517 32,430 145,ZC - 81.6:
635,315 2.701.204 1.539.923 2.036.592 9.067,lE
870,452 -
(266.254) -
604.198 - -
- -
- -
- 4 9 738,5C - - (2.097.35
2.641.15
2,701.204 1.539.923 2.036.592 11.708.31
-
- I 1.239.513
3,198 5,535 42,681 160 111,37 - 46,47
644.224 192.000 1.352.665 2.188.88
23.376 649.759 234.681 1.352.825 2.346.74
- 20,178 -
611,927 1,910,000 - 500,000 5,571,40
604.210 141.445 1.305.242 183.767 3.790.17
1,216.137 2,051,445 1.305.242 683.767 9.361.57
L239.513 2.701.204 w 2 2.036.592 11.708,31
See accompanying independent auditors' report. 1 135
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Retained Earnings
For the year ended June 30, 1992
Central Garaae
Operating revenues: Charges for services $ 2,004,127
Miscellaneous 57,074
Total operating revenues 2.061.201
Operating expenses:
562,319 Depreciation and amortization
Fuel and supplies 456,523
General and administrative 785.116
Total operating expenses 1.803.958
257,243
Claims expense -
Operating income (loss)
Nonoperating revenues (expenses):
Interest income 119,093
Loss on disposal of property (143.556)
(24,463) Total nonoperating revenues t net
Net income (loss) 232,780
Retained earnings at beginning of year 1.322.728
Retained earnings at end of year $ 1,555.508
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General Liability Health Workers '
Proce s s inp; Self -Insurance Insurance Compensation Total
Data
688,882 946,737 1,444,037 559,292 5,643 ,O; 539 2.023 268.905 177.441 505.9t
689.421 948.760 1.712.942 736,733 6.149 .O:
- 657,71 - - 456,5:
989,563 1,695 , 116 706 , 408 3,391 ,Ot - 1.361 .O: 575.917 -
671.341 989.563 1.695.116 706.408 5.866.31
- 95,424 - - - - -
18,080 (40,803) 17,826 30.325 282.6;
38 , 426 134,987 89 , 327 109,383 491,21 (216.8:
(34.846) 134.987 89.3 27 109.383 274.3{
(16 , 766) 94,184 107,153 139 , 708 557,O:
3,233.11
604,210 141,445 1.305.242 183.767 3.790.1;
- (73.272) - -
t 620.976 47.261 1.198.089 44.059
See accompanying independent auditors' report. I 137
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Cash Flows
For the year ended June 30, 1992
Central
Garage
Cash flows from operating activities:
Operating income (loss) $ 257,243
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation and amortization 562,319
(Increase) decrease in receivables (612:
Decrease in inventory 3,509
2,791 Increase (decrease) in accounts payable
Increase in accrued wages payable 2 , 408 Increase in estimated claims payable -
Net cash provided by operating activities 827,658
Cash flows from capital and related financing activities:
Purchases of property, plant and equipment (354 , 098
Loss on disposal of assets 143,556
Proceeds from capital contributions -
Net cash provided by (used in) capital and
related financing activities (210.542
Cash flows from investing activities - interest on investments 109.173
Net increase in cash and cash equivalents 726 , 289
Cash and cash equivalents at beginning of year 1.304.659
$ 2.030.948 Cash and cash equivalents at end of year
Supplemental schedule of noncash investing and financing
activities - capital assets contributed by other funds $366.680
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Liability
Self - Health Workers ' Data
Processing Insurance Insurance ComDensation Tota
18,080 (40,803) 17,826 30,325 282,67
- 657,74
2 , 383 (29) - 1,74 - 3,50
(1,449) 1,060 42,681 92 45,17 - 6,05
- 95,424 - - - - -
- 3 , 649 -
240.944 45.000 5.75 2 291.69 -
115,704 203.58 4 105.478 36.169 1.288.59
- (430 , 23
216,82
500.000 500.00
- (76 , 141) -
73 , 272 - - - - -
500.000 286.58
2ifL.JB 133.3 20 88.343 100.946 468.56
149,621 336,904 193,821 637 , 115 2,043,75
475,580 2.321.289 1.321.556 1.367.047 6.790.13
2.004.162 8.833.88 625.201 2.658.192 1.515.377
(2.869) - -
394.45 - 27.774 - -
See accompanying independent auditors' report. I 139
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Deferred Compensation
To account for employees' deposits in deferred compensation plans offered
the City.
Contractors' Deposits
To account for money deposited by contractors for designated futu
development.
a
Miscellaneous Depos its
To account for money deposited with the City for various items. 1
Assessment Districts
To account for the debt service transactions on assessment district bonds fc
which the City is not obligated.
141
CITY OF CARLSBAD
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the year ended June 30, 1992
Balance Ba 1 an c e
July 1, June 30,
1991 Additions Deductions 1992
Deferred ComDensation:
Assets :
Deferred compensation
investments $ 2.768.577 1.943.500 - 4.712.077
Liabilities:
Deferred compensation
payable $ 2,768,577 1.943.500 - 4.712.07;
Contractors ' DeDosits:
Assets:
Cash and investments $ 2.053.342 65.183 (289.952) 1.828.5 7:
Liabilities :
Deposits payable $ 2.053.342 65.183 (289.952) 1.828.5 7:
Miscellaneous DeDosits:
Assets :
Cash and investments $ 5,215,368 29,604,920 (27,012,294) 7,807,991
Accrued interest 4.123 1.466 (4.123) 1.466
Total assets $ 5.219.491 29.606.384 (27.016.417) 7.809.46C
Liabilities:
Accounts payable 2,717 8,660 (2,717) 8,66C
Due to other
1 , 731,49:
Deposits payable 5.043.388 17.788.400 (16,762.480) 6,069,301
Total liabilities $ 5.219.491 19.528.552 (16,938.583) 7.809.46(
governments - 1 , 731,492 - - (173 , 386 ) Due to other funds 173,386 -
142
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Balance Ba lan c e
July 1, June 30,
Additions Deductions 1992 1991
Assessment Districtq:
Assets :
Caeh and investments 4 3,663,663 3,206,167 (2,391,484) 4,478,34 Accrued interest 12,174 49.187 (12.174) 49.18 I Total assets 3,675,837 3,255.354 (2,403,658) 4,527.53:
Liabilities:
Assessments payable $ 3.675.837 3.200.768 (2.349.072) 4.527.53:
Totals - All Apencv Funds:
Assets:
Cash and investments $ 10,932,373 32,876,270 (29,693,730) 14,114,91:
Deferred compensation
inve s tmen t s 2 , 768,577 1 , 943,500 - 4,712,07;
Accrued interest 16.297 50.653 (16.297 ) 50.65:
Total assets 13.717.247 34.870.423 (29,710,027) 18.877.64:
Liabilities:
Accounts payable 2,717 8,660 (2,717) 8,66(
Due to other
- 1,731,49.
Asses smen t s payab le 3,675,837 3,200,768 (2,349,072) 4,527,53_
Deposits payable 7,096,730 17,853,583 (17,052,432) 7,897,881
Deferred compensation
4.712.077
Total liabilities $ 13.717.247 24.738,003 (19.577.602) 18.877.64:
governments - 1 , 731,492 Due to other funds 173 , 386 - (173 , 386) -
payab 1 e 2,768,577 1,943,500 -
See accompanying independent auditors' report. 1 143
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets used in operations accounted fc
in governmental funds. General fixed assets include all fixed assets nc
accounted for in an enterprise, internal service, or trust and agency fund.
144
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General Fixed Asset Account Group
Schedule of General Fixed Assets by Function 1 June 30, 1992
Culture
General and Public Pub 1 ic
Government Recreation Safe tv Works Total
Land $ 1,142,921 21,912,577 2,150,407 740 y 763 25 y 946 y 66
Buildings 2,998,460 9,907,544 13,758,093 - 26,664,OS
Improvements 790,218 1,121,380 120,563 23,471 2,055,6C
Furniture and
equipment 1,412,267 1,207,416 2,237,936 447,385 5,305,OC
Construction
3.064.8C 2.838.216 226.587
Total $ 6.343.866 36.987.133 18.493.586 1.211.619 63.036.X
-
See accompanying independent auditors' report.
145
CITY OF CARLSBAD
General Fixed Asset Account Group
Schedule of Changes in General Fixed Assets by Function
June 30, 1992
General General
Fixed Fixed
Assets Assets
July 1, June 30,
Function 1991 Additions Deductions 1992
General government $ 7,342,796 245 , 718 (1 , 244,648) 6 , 343,86t
Culture and recreation 33,223,738 6,879,098 (3,115,703) 36,987,13:
Public safety 19,176,695 716,935 (1,400,044) 18,493,586
Public works 1.957.613 127.218 (873.212) 1.211.61!
Total $ 61.700.842 7.968.969 (6.633.607) 63.036.201
See accompanying independent auditors' report.
146
CITY OF CARLSBAD
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General Fixed Asset Account Group
Schedule of General Fixed Assets by Source 1 June 30, 1992
As of June 30, 1986
Net additions subsequent to June 30, 1986:
$ 27,136,5
14,236,7 General fund Community development block grants 1,932,O
Other federal grants 460,5
State grants 667,O
Street lighting 896
Park development 6,010,6
Public facilities 9,546 , 5
Redeve lopmen t 3.036.!
Total investments in general fixed assets $ 63.036.:
See accompanying independent auditors' report.
147
ANNUAL DEBT SERVICE REOUIREMENTS
The following schedules present principal and interest debt servic
requirements for the City's debt.
148
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements
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4 $460,000 - 1967 CARLSBAD BUILDING AUTHORITY REVENUE BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Ann1
Year December 15 June 15 Interest December 15 Debt Serv
199 2-9 3 $ 1.050 - - 1.050 35.000 36.050
1 $1.535 .OOO - 1969 C ARLSBAD PARKING AUTHORITY REVENUE BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Ann
Year October 1 April 1 Interest October 1 Debt Serv
1992-93 14 , 400 11 , 200 25,600 100 , 000 125 , 60
100,000 119920
1994-95 a , ooo 4,000 12,000 125,000 137,UO
1995-96 4.ooo - 4.000 125 .OOO 129 .OO I $ 37.600 23.200 60.800 450 .OOO 310.80
1993-94 11,200 8,000 19,200
$1.169.000 - 1981 CARLSBAD PARKING AUTHORITY REVENUE BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Ani I EXaE Auaus t 1 Februarv 1 Interest Februarv 1 Debt Sen
1992-93 $ 40,000 40 , 000 80,000 75 , 000 155 , O(
1993-94 37,000 37,000 74 , 000 100 , 000 174,0(
1994-95 33 , 000 33 , 000 66 , 000 100 , 000 166 ,O(
1995-96 29 , 000 29 , 000 58 , 000 100 , 000 158 , O(
1996-97 25 , 000 25 , 000 50,000 100,000 150 , O(
199 7-98 21,000 21,000 42,000 125,000 167,0(
1998-99 16 , 000 16,000 32 , 000 125,000 157 ,Of
1999-00 11,000 11,000 22,000 125,000 147 ,O( A 2000-01 6 .OOO 6.000 12.000 150,000 162,0(
$ 218.000 218 .OOO 436.000 1.000.000 1.'
149 (Cont in
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, Continued
$12,0009000 - 1988 CARLSBAD HOUSING AND REDEVELOPMENT
COMMISSION TAX ALLOCATION BONDS
Fiscal Interest Due Interest Due Total Principal Due Total AnnuaJ
Year October 1 April 1 Interest April 1 Debt Service
1992-93 $ 423,969 423,969 847 , 938 290 , 000 1,137,938
1993-94 415,414 415,414 830,828 305 , 000 1,135,828
1994-95 406 , 111 406,111 812,222 330,000 1 , 142,222
1995-96 395,799 395,799 791,598 355 , 000 1 , 146,598
1996-97 384 , 26 1 384 , 261 768,522 380,000 1,148,522
199 7-98 371,531 371,531 743,062 405 , 000 1,148,062
1998-99 357,559 357,559 715 , 118 440,000 1,155,118
1999-00 342,159 342,159 684,318 475 , 000 1 , 159,318
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
2002-03 286 , 332 286 , 332 572 , 664 5 95,000 1 , 167,664
1,16 7 , 740 2003-04 263 , 870 263,870 527,740 640 , 000
2004-05 239,550 239,550 479 , 100 690,000 1 9 169 9 100
2005-06 213,330 213,330 426,660 753 , 000 1,176,660
2006-07 184,830 184,830 369,660 810 , 000 1,179,660
200 7-08 154,050 154,050 308,100 875,000 1 , 183,100
2008-09 11 9 , 925 11 9,925 239,850 945 , 000 1,184,850
2009-10 83,070 83,070 166,140 1,025,000 1,191 , 140
2010-11 43.095 43.095 86.190 1.105.000 P .f91.190
To tal $ 5,316,832 3.316.832 10,633.664 11.475.000 22.108.664
150 (Continued)
CITY OF CARLSBAD
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Schedule of Annual Debt Service Requirements, Continued
$9.570.250 - COLLEGE BOULEVARD ASSESSMENT DISTRICT BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Ann
Year SeDtember 2 . March 2 Interest SeDtember 2 Debt Serv
1992-93 $ 332,390 320 , 790 653,180 320,000 973 , 18
1993-94 320,790 308 , 025 628 y 815 345,000 973,81
1994-95 308,025 294 , 150 602,175 370,000 972,17
1995-96 294 , 150 279 , 140 573 , 290 395,000 968 , 29
1996-97 279,140 262,778 541,918 425 , 000 966 , 91
199 7-98 262 , 778 244,952 507 , 730 460,000 967 , 72
19 98-9 9 244,952 225 , 648 470 , 600 495,000 965,6C
199 9-00 225 , 648 204 , 712 430,360 530,000 960 , 36
2000-01 204,712 182,000 386 , 712 575,000 961,71
2001-02 182,000 157,200 339 3 200 620,000 959,ZC
2002-03 157,200 130 , 400 287,600 6 70 , 000 957,6C
2003-04 130 , 400 101,400 231,800 725,000 956,8C
2004-05 101,400 70 , 200 171,600 780 y 000 951 , 6C
200 5-06 70 , 200 36,400 106 , 600 845 , 000 951,6C
2006-07 36.400 - 36.400 910 .ooo 946.4C I To tal $ 3.150.185 2.817.795 5,967.980 8,465 .OOO 14.432.9E
n
151 (Con t ir
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, Continued
$8,690. 000 - 1988 CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total Annua Year August 1 Februarv 1 Interest Aueus t 1 Debt Service
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 , 143 270,590 551 , 733 315 , 000 866,733
1996-97 270,590 259 , 205 529 , 795 330 , 000 859,795
199 7-98 259 , 205 246 , 780 505 , 985 355,000 860 , 985
1998-99 246 , 780 233 , 100 479,880 380 , 000 859,880
1 9 9 9-00 233,100 217,930 451,030 410,000 861,030
419 , 330 435 , 000 854,330 2000-01 217,930 201 , 400
200 1-0 2 201,400 182 , 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
2004-05 140,000 116,000 256,000 600,000 856,000
2005-06 116,000 90,400 206 , 400 640 , 000 846 , 400
2006-07 90 , 400 62 , 600 153,000 695,000 848 , 000
2007-08 62,600 36 , 600 99 , 200 750 , 000 849 , 200
2008-09 36.600 - 36.600 815,000 85 1.600
To tal $ 3.39 7.726 3,090. 602 6.488.328 8.090.000 14.5 78.328
152 (Con t hued )
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, Continued
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$14,370,000 - 1988 CARLSBAD MUNICIPAL WATER DISTRICT I CERTIFICATES OF PARTICIPATION
Interest Interest Pr inc i pa 1 Total
Fiscal Payment Due Payment Due Total Payment Due Annual
Year November 1 Mav 1 Interest Mag 1 Debt Semi
1992-93 $ 421,269 421,269 842,538 685 , 000 1,527,53
1993-94 399 , 348 399 , 348 798,696 730,000 1,528,6?
19 94-95 375,624 375,624 751,248 775,000 1 , 5 26 , 21
1995-96 350,049 350 , 049 700 , 098 825,000 1,525 ,O!
1997-98 292,491 292,491 584,982 940,000 1,524,91
1998-99 260,061 260,061 520,122 1,005,000 1 , 525 , 1:
1999-00 224,886 224 , 886 449,772 1,075,000 1,524 , 7:
2000-01 186 , 724 186 , 724 373,448 1,155,000 1,528,41
145 , 144 145 , 144 290,288 1 , 235 , 000 1 , 525 , 21 200 1-02
2002-03 100 , 375 100 , 375 200,750 1,325,000 1 , 525 , 71 I 2003-04 52,012 52.012 104,024 1.425 .OOO 1.529 .O:
Total $ 3.130.394 3.130.394 6.260.788 12.055.000 18.315.71
1996-97 322,411 322,411 641,822 880,000 1,524,81
153 (Con t in1
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, Continued
$12,689,800 - ENCINA FINANCING JOINT POWERS AUTHORITY
INSTALLMENT PURCHASE AGREEMENT
Interest Interest Principal Sinking Fund Total
Fiscal Payment Due Payment Due Payment Due Payment Due Annual
Year August 1 February 1 August 1 August 1 Debt Servic
1992-93 $ 422,226 422 , 226 - - 844,452
1993-94 422,226 413,850 274,630 - 1,110 , 706
1994-95 413,850 404,866 289,782 - 1,108,498
1995-96 404,866 395,142 308,722 - 1,108 , 730
1996-97 395,142 384 , 738 327,662 - 1,107,542
199 7-98 384 , 738 373,586 348 , 496 - 1 , 106,820
- 1,106,210 1999-00 361,615 348,749 395,846
2000-01 348,749 334,979 420,468 - 1,104,196
200 1-0 2 334,979 320,167 448 , 878 - 1,104,024
200 2-0 3 320,166 304 , 296 477,288 - 1,101 , 750
543,578 1,099,350
2005-06 268,543 248 , 555 - 581,458 1,098,556
2006-07 248,555 227 , 201 - 621 , 232 1,096,988
2007-08 227 , 201 204,349 - 664,794 1,096,344
2008-09 204 , 349 179,933 - 710,250 1 , 094,532
2009-10 179 , 933 153,891 - 75 7,600 1,091,424
2010-11 153,891 126,025 - 810,632 1 , 090,548
201 1-12 126,025 96,273 - 865,558 1,087,856
2012-13 96,272 66,172 - 926 , 166 1,088 , 610
2013-14 66,172 34,100 - 986 , 774 1,087,046
2014-15 34.103 - - 1.049.276 1.083.379
- I, 106,426 1998-99 373,586 361,616 371,224
2003-04 304 , 297 287,229 509,486 - 1,101,012 2004-05 287,229 268,543 -
To tal $ 6,378,713 5,956,486 4,172,482 8,517,318 25.024.999
See accompanying independent auditors' report.
154
e e
\ KPMG Peat Marwick
Certified Public Accountants
750 8 Street Telephone 61 9 233 8000 Telecopier 619 696 01
San Diego, CA 921 01
March 12, 1992
Mr. James F. Elliott Financial Management Director
1200 Carlsbad Village Drive Carlsbad, California 92008
Dear Jim:
As requested, we are writing to provide you with an estimate of fees for the audit of the financial statements of the City of Carlsbad as of and for the year ending June 30, 1992. This letter will confirm our understanding of that engagement.
We will conduct our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States
with the objective of issuing the reports listed below at the conclusion of our audit. It should be understood that the City's management has responsibility for representations contained in the financial statements and that we will require a written representation letter be furnished to us by members of the City's management near the completion of our audit. Our responsibility is to express an opinion on these financial statements based on our audit.
In conducting our audit we will perform tests of the accounting records and such other procedures as we consider necessary in the circumstances to form our opinion about whether the financial statements are free of material misstatement and to report on whether management has complied with laws and regulations and has established and maintained an internal control structure.
An audit in accordance with the above standards is not designed to provide absolute assurance that there are no misstatements in your financial statements or any noncompliance with laws and regulations resulting from errors or irregularities. The City's internal control structure should provide assurance, although not absolute assurance, against the possibility of such errors and irregularities.
We understand that all records, documentation and information we request in connection with our audit will be made available to us. At the conclusion of our audit, we plan on issuing the following reports for the year ending June 30, 1992.
City of Carlsbad
For the City:
A report on the general purpose financial statement of the City as a whole with supplementary information as incorporated in the Comprehensive Annual Financial Report;
Redevelopment Agency;
0 A report on the component unit financial statements of the Carlsbad
~v~~.rt~t~c~r rlr41 ilf
h'wivclrl I+ ii Phrw ck Gnerrldrr
0 0 '. KPMG Peat Marwlck
Mr. James F. Elliott City of Carlsbad March 12, 1992 Page 2
0 A report on the component unit financial statements of the City of Carlsbad Public Improvement Corporation;
A report on the component unit financial statements of the Building Authority of the City of Carlsbad;
A report on the component unit financial statements of the Parking Authority of the City of Carlsbad;
An agreed upon procedures letter relating to the Gann limit;
A report on the internal control structure based solely on our consideration
A report on conipliance with laws and regulations that may have a material
A report on compliance with laws and regulations relating to the Carlsbad
0
4
4
4 . of the structure made as a part of the audit of the general purpose financial statements; and
effect on the general purpose financial statements.
4
Redevelopment Agency.
For the City's federal assistance programs:
4 A report on the supplementary schedule of the City's federal financial
A report on compliance with laws and regulations identifying all findings of
A report on the internal control structure used in administering federal
A report on fraud, abuse, or illegal acts (or indications of such acts), if
assistance programs;
0
noncompliance and questioned costs;
0
financial assistance programs; and
4
necessary.
It should be understood that our audit may not reveal all errors, irregularities or illegal acts which may have occurred during the year. However, please be advised that it is our responsibility to ensure that the City Council is informed of any significant illegal acts that we become aware of during our audit. If the illegal act involves funds from other governmental entities, it is the City Council's responsibility to inform the other governmental entities of these acts. If the City of Council is involved in t he illegal act or does not report to the other governmental entities on a timely basis, we will be obligated to report the illegal acts to these other governmental entities.
. * e
I KhPeat Marwick
Mr. James F. Elliott
March 12,1992 Page 3
Our fees, which will be billed to you as the work progresses, are based on hourly rates
plus reimbursement of out-of-pocket expenses. Our fee for the engagement are estimated to be as follows:
Ciry of Carlsbad
Comprehensive Annual Financial Report
Schedule of Federal Financial Assistance and the Auditors' Reports Required Under the Single Audit Act of 1984 3,600
Carlsbad Redevelopment Agency 2,900
City of Carlsbad Public Improvement Corporation 2,900
775
Parking Authority of the City of Carlsbad 775
Gann Limit 1 ,m
$ 31,900
Building Authority of the City of Carlsbad
These fees are inclusive of out-of-pocket costs including report charges and mileage estimated to be $7,200 for the above reports.
If the terms of our engagement as outlined in his letter are acceptable to you, please sign
and return the enclosed copy of this letter. If you have any questions regarding this letter or any other matter, please do not hesitate to call me.
Very truly yours,
KPMG Peat Marwick 4M-
John H. Davis Partner
JHD:dcm
Enclosure
cc: Ms. Lisa Hildabrand
Accepted by:
?%$A& Date
CARLSBAD REDEVELOPMENT AGENCY
Notes to Combined Financial Statements
June 30, 1992
I)
(1) Organization and Summary of Significant Accounting Policies
The Carlsbad Redevelopment Agency (the Agency) was established in
1976 with the adoption of Ordinance No. 1191 by the Carlsbad
Council pursuant to the California Community Redevelopment Law,
codified as Part 1, Division 24, of the State of California Health
Safety Code. The Agency has the broad authority to acqu
rehabilitate, develop, administer and sell or lease property.
Agency is not subject to federal or state income taxes.
e
a
The principal objectives of the Agency are to eliminate blis influences within the "Village Area" of the City of Carlsbad, stimi
and attract private investment, generate added employment thi
increased specialty goods and services and expand the City's sales
revenue. a
The Agency is an integral part of the reporting entity of the Cit
Carlsbad (the City). The funds and account group of the Agency
been included within the scope of the general purpose finar
statements of the City because the City Council exercises over:
responsibility over the operations of the Agency. Only the fundr
account group of the Agency are included herein; therefore,
financial statements do not purport to represent the financial pos
or results of operations of the City of Carlsbad, California.
J,
The accounting policies of the Agency conform to generally acc
accounting principles as applicable to governmental units.
following is a summary of the more significant policies:
e
(a) Basis of Presentation:
The accounts of the Agency are organized on the basis of funds a
account group, each of which is considered to be a seE
accounting entity. The operations of each fund and account
are accounted for by providing a separate set of self-balz
accounts that comprise its assets, liabilities, fund bal
revenues, and expenditures. The various funds and account
are summarized by type in the financial statements. The fund
and account group used by the Agency are as follows:
GOVERNMENTAL FUND TYPES:
Governmental funds are used to account for the Agency's expe
financial resources and related liabilities. The measurement
is upon determination of changes in financial position.
following are the Agency's governmental fund types:
0
a
a
(Cont
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2
CARLSBAD REDEVELOPMENT AGENCY
Notes to Combined Financial Statements, Continued
I)
(1) Oraanization and Summary of Significant Accounting Policies. Continued
(a) Basis of Presentation, Continued:
Svecial Revenue Funds
Special revenue funds are used to account for revenues der
from specific sources (other than major capital projects)
are restricted by law or administrative regulation
expenditures for specified purposes.
Debt Service Funds
Debt service funds are used to account for the accumulatio
resources for , and payment of general long-term debt princj
interest and related costs.
Cavital Projects Funds
Capital projects funds are used to accourrt for finar
resources to be used for the acquisition or construction of 1
capital facilities.
0
ab
GENERAL LONG-TERM DEBT ACCOUNT GROUP:
This account group is used to establish accounting control
accountability for the Agency's general long-term debt.
account group is used to account for all long-term obligatio1
the Agency.
e
(b) Measurement Focus a nd Basis for Accoun ting:
Governmental fund types are accounted for on a "spending" measur
focus. Accordingly, only current assets and current liabil
are included on their balance sheets, and the reported fund ba
provides an indication of available, spendable resou
Operating statements for governmental fund types report incr
(revenues) and decreases (expenditures) in available sper
resources.
0
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(Cont:
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Combined Financial Statements, Continued
*
(1) Organization and Summarv of Significant Accountinz Policies. Co n t inued
(b) Measurement Focus a ad Basis €or Accoun ting. C on t hued : e
The modified accrual basis of accounting is utilized by
governmental fund types. Revenues are recognized when suscept
to accrual, i.e., both measurable and available. Available m
collectible within the current period or soon enough thereaf te:
be used to pay liabilities of the current period. *
Revenues that are accrued include the tax increment on real proF
taxes and interest income.
Real property taxes are levied on October 15 against owners of re
at March 1. The taxes are due in two installments, on Novemt
and February 1, and become delinquent after December 10
April 10, respectively. Tax liens attach annually as of 12:Ol
on the first day of March in the fiscal years for which the t
are levied. Under the provisions of NCGA Interpretatic
taxes have been levied, provided it is collected within 60 day
the end of the fiscal year.
e
property tax revenue is recognized in the fiscal year for whict
Governmental fund expenditures are recognized when the liabilit
incurred, except for principal and interest on long-term debt F
is recognized when due.
(c) Encumbrances:
Encumbrance accounting, under which purchase orders, contracts
other commitments for the expenditure of monies are recorde
order to reserve that portion of the applicable appropriatior
employed as an extension of formal budgetary control in
governmental funds. Encumbrances outstanding at year-end dc
constitute expenditures or liabilities, but are reportec
reservations of fund balance for subsequent-year expenditures.
0
(d) Cash and Investments: a
The Agency participates in the pooled cash and investment fund o
City of Carlsbad. Pooled investments are stated at cos
amortized cost. The Agency's equity in the pooled cash is inc
in the financial statements as cash and investments. Int
earned as a result of the pooling is allocated to the Agency
on its average monthly balances. *
(Conti
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4
CARLSBAD REDEVELOPMENT AGENCY 0
Notes to Combined Financial Statements, Continued
(1) Oraanization and Swarv of Sianificant Accounting Policies, Continued
(e) ComDensated Absences:
Vacation pay is payable to employees at the time used or
termination of employment. The cost of accumulated vaca
expected to be paid in the next 12 months is recorded as a
liability; currently no amounts are expected to be paid aftei e months .
(f) Total Columns:
Total columns on the accompanying combined financial statements
captioned "Totals (Memorandum Only)" to indicate that they
presented only to facilitate financial analysis. Data in t
or changes in fund balance in conformity with generally acce
accounting principles. Such data is not comparable t
consolidation. Interfund eliminations have not been made in
aggregation of this data.
calms do not present financial position, results of operatj
e
(2) Budgetarv Data
The budget for the Agency is established by the City of Carlsbad.
City Manager is authorized to make transfers of appropriated amc
within a fund and function for up to $15,000. Revisions that altei
total appropriations of any fund or function must be approved by
City Council. A mid-year budget review is conducted each year.
major changes to the adopted budget are approved by the City Counc
that time.
e
Budgets are adopted on the modified accrual basis, except
encumbrances are treated as budgeted expenditures in the year purc
are committed. Expenditures may not exceed budgeted appropriatioi
the departmental level. Unencumbered appropriations lapse
year-end. Annual budgets are adopted for the special revenue and
service funds.
e
There were no encumbrances outstanding for the debt service fund i 0
June 30, 1992.
I,
(Cont!
0
e
5
CARLSBAD REDEVELOPMENT AGENCY
Notes to Combined Financial Statements, Continued
e
(2) Budgetary Data. Co n t inued
e The following schedule is a reconciliation of the budgetary and GAAP
balances :
Debt Sen
Fund balance - budgetary basis $ 2,019,072 2,287,5
Debt service on advances from
SDecial Revenue
a Encumbrances outstanding at year-end 6 , 196 -
City of Carlsbad - not budgeted - m
Fund balance - GMP basis $ 2.025.268 l-757.(
(3) Cash and Investments
The Agency participates in the pooled cash fund of the City.
addition, some deposits are held separately by several of the Age1
funds . e
Authority for Deposits and Investments:
The Agency's investment policy and state statutes authorize the Agenc
invest in demand and time deposits, obligations of the U.S. Treaz
its agencies and instrumentalities, commercial paper rated A-:
Standard and Poor's Corporation or P-1 by Moody's Commercial 1
record, banker's acceptances with a maximum maturity of 270 (
with national and state licensed or chartered banks or federal or :
savings and loan associations, money market and mutual funds I
portfolios consist of one or more of the foregoing investments, an
repurchase and reverse repurchase agreements 9 certificates of de]
State Treasurer's investment pool.
State statutes require that all deposits be insured or collateral
Depositories holding public funds on deposit are required to mai
collateral in the form of a pool of securities with the agent o
depository having a market value of at least 10 to 50 percent in e
of the total amount of all public funds on deposit. e
e
(Conti
e
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6
CARLSBAD REDEVELOPMENT AGENCY
Notes to Combined Financial Statements, Continued
(3) Cash and Investments. Continued
0 Deuos i ts :
The following summary presents the amount of the Agency's deposits 7
are fully insured or collateralized with securities held by the A1
are collateralized with securities held by the pledging f inai
institution's trust department or agent in the Agency's name (Cat1
Two), and those deposits which are not collateralized or
collateralized with securities held by the pledging fina
institution or its trust department or agent but not in the Age
name (Category Three) at June 30, 1992.
e Total
or its agent in the Agency's name (Category One), those deposits \
Category Category Category Bank Carr
One Two Three Balance Am0
Cash on deposit
with trustee $ -=- 2-825.792 1.151.608 3,977.403 3,977 e
Investments :
At June 30, 1992, the Agency had $3,267,590 invested in the pooled
fund of the City. Since securities are not used to evidence
Agency's investment in this fund, these amounts cannot be class
according to the level of risk assumed by the Agency.
(4) Pension Plan
The Agency's employees are included in the City's pension plan whi a administered by the California Public Employees Retirement S
(PERS). PERS is an agent multiple-employer public employee retir
system that acts as a common investment and administrative agen
participating public entities within the state of California.
e
e
(Contj
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7
CARLSBAD REDEVELOPMENT AGENCY
Notes to Combined Financial Statements, Continued
0
(4) Pension Plan, Continued
0 All full-time employees are eligible to participate as members of PERS, Benefits vest after an employee has been a member of the :
for five years. Employees are eligible to retire after age 50 wit
years of credited service. Annual retirement benefits are determ
based on age at retirement, the length of membership service and
amount of earnings based on the highest twelve consecutive mo e average. The PERS also provides death and disability benefits. 'I
benefit provisions and all other requirements are established by s
statute.
Employees are required to make contributions equaling 7 percent of g
pay. This is paid by the City for the benefit of the employees in a of salary. The City is also required to contribute the remai
amounts necessary to fund the benefits for its members, using
actuarial basis recommended by the PERS actuaries and actua
consultants and adopted by the PERS Board of Administration.
Additional disclosures required by Governmental Accounting Stanc
entity. This information for the City's reporting entity is presc
in the Comprehensive Annual Financial Report of the City of Carlsbac
e Board Statement No, 5 are not available for the Agency as a sepp
(5) Lona-term Debt
m The following is a summary of changes in long-term debt for the
ended June 30, 1992:
Principal Princ
Ba 1 an c e Bals
July 1, Additional Principal June a 1991 Oblizat ionq Re tirementr; Lp
Advances from
the City of Car 1 sbad $ 6,989,854 500 , 731 29 , 800 7,460
270,000 11.475 0 Bonds payable 11,745,000 -
$ 18.734.854 500.731 22Uuu
(Contj
0
e
8
CARLSBAD REDEVELOPMENT AGENCY
Notes to Combined Financial Statements, Continued
0
(5) Long-term Debt. Continued
0 Since activation of the Redevelopment Agency in July 1976, the City
advanced the Agency monies for approved expenditures. Advances
the City bear interest at 10% per year. There is no stated matu
date.
Bonds payable consist of $11,475,000 in 1988 Carlsbad Housing
Redevelopment Commission Tax Allocation Bonds. Principal is du
amounts ranging from $290,000 to $595,000 on April 1 of each
through 2003, a principal payment of $2,890,000 on April 1, 2007, i
principal payment of $3,950,000 on April 1, 2011. The princ
payments of $2,890,000 and $3,950,000 are subject to mandatory sir
fund redemption which amounts are reflected in the debt sei
requirements below. Interest is payable each year on October 1
April 1 at rates varying from 5.5% to 7.55% per annum.
e
e
Debt service requirements to maturity for the bonds, including si1
fund payments, are as follows:
1993 $ 1,137,938
1994 1,135,828
1995 1,142,222
1996 1 , 146,598
1997 1,148,522
1998-2002 5,786,452 a 2003-2007 5,860,824
2008-201 1 4.750.280
22,108,664
(10 -633.6 64)
0
Less amounts representing interest
Bonds payable $ 11.475.000
e
At June 30, 1992, the Agency was in compliance with all significant
covenants. a
(Cent
9
CARLSBAD REDEVELOPMENT AGENCY 0
Notes to Combined Financial Statements, Continued
(6) Obligations Under Operating Leases
e In June 1988, the Agency entered into an agreement to lease a parking
from a private party. The lease requires monthly rental payment:
$3,270 for twenty years. Rent expense was $39,240 for the year e
June 30, 1992.
In May 1990, the Agency entered into an agreement to lease a parking a on Carlsbad Village Drive from a private party. The lease requ
monthly rental payments of $4,350 commencing July 1, 1991 for
years. Total annual rent expense is $52,200.
The following is a schedule by year of future minimum rental pap
required under operating leases at June 30, 1992:
Annual
Year ending Jun e 30, Rental Pavments
1993 $ 91,440
1994 91,440
1996 41,954
1997 41,954
Thereafter 526.119
Total minimum lease payments $ 886.701
e 1995 93,794
a
(7) Fund Balances
Reserves for the loan receivable and low and moderate income housing
established to show that certain assets are already committed to c
purposes and are not available for discretionary expenditures.
Reserve for debt service represents resources legally restricted to
payment of general long-term debt principal and interest maturin
future years.
e Reserve for encumbrances represents commitments related to unperfc
contracts for services and undelivered goods.
Unreserved-designated for approved capital projects represents the
balance expected to be used for the acquisition or constructio
major capital facilities. 0
(Contii
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10
CARLSBAD REDEVELOPMENT AGENCY
Notes to Combined Financial Statements, Continued
*
(7) Fund Balances, Continued
0 Unreserved-undesignated balances represent the fund balance rema
after reduction for reserved and designated fund balances.
(8) Other Required Individual Fund Disclosures
Expenditures exceeded appropriations in the following fund: 0
ExDenditure AoDropriz
Debt service fund - interest and
Special revenue fund - general
fiscal charges $ 863,326 863,2
government 104,309 98,l 3
The excess of expenditures over appropriations in the debt service
relates to fiscal charges and the excess of expenditures
appropriations in the special revenue fund relates to vai 3 expenditures.
3
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--- - __ - e KP=>Peat Marwick
Certified Public Accountants
750 B Street
San Diego, CA 92101 a
Independent Auditors' Report
On Compliance With Audit Guidelines e
For California RedeveloDment Agencies
The Board of Commissioners
Carlsbad, California:
e Carlsbad Redevelopment Agency
We have audited the combined financial statements of the Carl$
Redevelopment Agency (a component unit of the City of Carlsbad, California
of and for the year ended June 30, 1992, and have issued our report the
dated October 9, 1992. These combined financial statements are
responsibility of the Agency's management. Our responsibility is to exp:
an opinion on these combined financial statements based on our audit.
In connection with our audit, we performed the procedures contained in a publication entitled Guidelines for Co mDliance - Audits of Califo
Redevelopment Agencies, as promulgated by the Controller of the Statc
California in connection with a review of the Agency's compliance with 1
regulations and administrative requirements governing activities of
Agency, as required by Section 33080.1(a) of the Health and Safety Code of
State of California. The procedures we preformed would not necessa
disclose all instances of noncompliance because they were based on selec
tests of accounting records and related data.
During the performance of the aforementioned procedures , nothing came to
attention that would lead us to believe that the Carlsbad Redevelopment Ag
of the City of Carlsbad did not comply with applicable laws, regulatiom
administrative requirements governing its activities.
This report is to be used solely for filings with appropriate reguli
agencies and is not intended for any other purpose. This restriction is
intended to limit the distribution of this report which, upon acceptanc
the Agency, is a matter of public record.
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e
0
a
KP/rlG pe4.t dd
October 9, 1992
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-- - ___--__ a
Member Firm of
. - - ~___ - Klynveld Pear Marwck Goerdeler