Loading...
HomeMy WebLinkAbout1993-08-10; City Council; 12351 Exhibit 1; Comprehensive Annual Financial Report1 I Comprehensive I I I I 1 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 I I I I James F. Elliott 1 FINANCE DIRECTOR Lisa Hildabrand I 1 I 1 Prepared by the Finance Department d I I I E t introductory Sect/on I Ir I I I I 1 I I I I I I I CITY OF CARLSBAI) Comprehensive Annual Financial Report Year ended June 30, 1992 I f I rl 1 I 1 Organization Chart 2r E 1 ¶ 1 I Y I t E I 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 v 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 i 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 ii CITY OF CARLSBAD Comprehensive Annual Financial Report Year ended June 30, 1992 I I 1 I I I B U 1 T 1. 1 1 1 1 # I LE OF CONTENTS. COW- FINANCIAL SECTION. Con thued Supplemental Data, Continued: - P 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 - I iii 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 iv I I - City of Carlsbad 1 I I J 1 J 1 c c z f I 1 t 5 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. e 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. 1 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 2 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 I I l 1 i J 1E I 1 D 1 1 1 1 J 8 1 DWELLING UNITS CONSTRUCTED IASTSEVENYEARS 2500 < Growth Managamant ~rnplomentd in 1987. 2000 - 1500 - 1000 - 500 - 0 1986 1987 1988 1989 1990 1991 1992 FISCAL YEAR I I I I I 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 ' 3 i 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 - 4 account in^ System and Budnetarv Control .i I. I P I I 1 I @ P II f 1 8 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 I (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. (4) (5) 8 D 5 I 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 6 The following report summarizes the revenues and expenditures (or expenses) for the Cir of Carlsbad for the fiscal year ended June 30, 1992. ! I I I 1 I 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 I (in thousands) 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 11 1 1 1 I 1 I I ( 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 7 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. . 8 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 1 1 1 R 1 I 1 1 I d 1 I I I I 1 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) 9 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. 10 Special Revenue Funds Revenues (in thousands) I I I U I I 8 1 1 1 1 1 I I 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) e i 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, I 11 1 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 12 ' 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 I 1 I 8 s I 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. I I I I I I # 4 13 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. - 14 I Entervrke ODera tiOnS 1 I 1 1 U I 1 1 1 I 0 I: 4 1 I I 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) a 1 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% 15 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. 16 ' 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. I I I 2 1 D I I 8 1 I I i s I I I kenw Funds 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 18 Economic Outlook N I 8 It I !t 1 I I 1 1 I 1 c i I 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 I E I beach users and is considering constructing additional restroom facilities. 19 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 20 1. J I 1 J i I I II II 1 91 I I II r 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 22 CmOFcARIsaAD I t ELECIEDClTYOFFIcLAIs I 1 I I D # 1 I t 8 i 8 c I 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 I 23 ----------- ------- L_l__L_,,_-,-,___,,_____ 24 -==- 'G Em $3 1 'rl 4 C C 25 L i 45 #k uk b cc x 2; 2: $2 u9 zg 3E =E q 2 C aJ -4 YR Q, 20 Q, ZZa ma-, . cl'u LLQl 82 82 Arne g .s I& #g2 l3z 1% -3 52 M CLU 1% mz =-a 22 > i I3 IL' a2 6V ffg V2 c e,.,? IJ >c 1 u;- 3 Qp [ I"a( a$ . Esx ¶-l 3>0 OU!! zs v)uL. m r C 2;: f 0-2 La2 sz-, Q, cw ' *mE "Q Zlg Q IT ?J A c nw e 0 =ac= P . <s - &*,2 s',8 0 - .s A . rw em c--l 22 - - L w- 05 d- iiju - - LC -r on V)t Sf - r w C c a a 4 ,e 4 - - - Q) 5 C 0 f? tt i II r - 26 1 I 1 I I 1 Financial Section I 1 m 1 I 1 I I 8 4 1: I n KPMG Peat Marwick 1 i 8 I I I u 1 8 1 It 1 I I I I II 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. 28 u I I I a I I I I 1 I I I 8 B 1 1 I 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 a 29 (Contj 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. 30 I I I I 1 I I 1 1 I 1 1 8 I I I I 1 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 1 I I I I I I 1 i I u .I 1 I I I I I 1 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. 0 3 I I 8 1 I I 1 B i I I 1 I 2.245.414 (1.513.613) 3.028.088 4.455.3' I - 1 I I 1 . 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 I I I I 1 I 1 1 II I I 1 1 1 I I 1 1 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 I I I 1 1 I I I 1 I I 1 I I I I 8 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 1 I 1 I 1 I I I 8 1 I I I 8 1 I I 1 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 I I 1 I I I 1 I I 1 I I I I I I I 1 (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 I I I ACCOUNT GROUPS. Continued: (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. I 1 1 I 1 1 I 1 1 I 1 1 1 1 I 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 I I I I 1 I I 1 I 1 I I I I I 1 I (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 I I 1 I I I I I 1 I I I I 1 li t 1 I I (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 1 I I I I I I I I I I U I E I I 1 1 I (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 I 1 I 1 I 1 E 1 I I s 1 I 1 1 I I I (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 1 1 P E Funds - Fun 1 1 1 I I 1 I fi T 1 I 1 1 I I: (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 1 I Y E I I 1 II 1 1 $ 33.500.000 100.00'; 1 a 2 1 1 1 1 (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 1 I 1 I 0 I f 1 1 1 t S I I I I t 1 (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 B (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. li I I II T J 1 1 8 1 d 1 t t I 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 1 1 1 (8) Deferred Co mDensation Plan. Continued 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 I Y I I 0 D 1 D t & t I 1: (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 1 1 1 c 8 I I E I g 1 1 1 E 1 I @ I (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 1 1 I I I t 8 I E It 1 D 1 I 1 I (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 a 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 1 I I I I I I I 1 v R 1 I 1 1 I (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 m 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 1 1 1 1 I I I 1 I t 1 ! 1 1 1 0 1 1 1 (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 I 1 I 1 t II I c i B E 1 B I 1 I I Notes to Combined Financial Statements, Continued (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. a I (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. 74 I I 1 I I I Supplemental Data I I 1 I 1 t I 8 I II 1 I I I I GENERAL EmD 1 1 I 8 I I I I I I 1 B I tl I 1 I 75 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) 76 I I I J 1 I 8 ! I t I B I t 1 I 1 I 77 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 78 1 I I I I I I I I I 8 8 U 1 I 1 1 I 79 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 u I 1 II I I I I I S c 0 J I I I 1 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 a * a a PARKING AUTHORITY OF THE CITY OF CAFUSBAD Combined Financial Statements e June 30, 1992 (With Independent Auditors' Report Thereon) q 4 e d e 0 a 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 e d e e 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 * e e e 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: - - e 3 * 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 0 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 c 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 0 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 * (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 a 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 0 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 0 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 * a (Conti 7 e Q 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 $150,000 on February 1 of each through 2001, interest payable on August 1 and February 1 at 8.0 annum. Bonds maturing on or after February 1, 1991 are subject tc in whole or in part at the option of the Authority at prices rE from 100.25% to 102% of the principal amount of the bonds. * 0 0 (Cont: 8 0 PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements, Continued a (4 ) Revenue Bonds Pagab le, Continued Debt service requirements to maturity for the revenue bonds payab11 as follows: a Series Series Year ending Jun e 30, 1p$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 0 e 0 e SUPPLEMKNTARP STATEMENTS AND SCHEDULE a a e a e e 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 8 a e e SUPPLFMENTARY STATEMENT AND SCHEDULE e 0 e 0 a 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 a 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 a 0 a 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 I I I I 8 1 I 8 1 f 1 I I I U 1 I 1 199 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 c I I 8 8 I R 8 r I I 8 I s D I I To tal Total x of 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 1 I 1 8 I 8 I i 1 II I I 8 1 1 I i 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 I I I I I 1 8 I I B I 8 I 1 I 1 1 e 1 167 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 . 166 H I I I 8 c I I B I u I I 1 I 1 I t 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% - 1 I 0.0% I I 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 I I I I B Computation of Legal Debt Margin 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 I I 8 I II 1 E I I I I (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 I I 1 8 1 I 1 I 4 0 I 84 83 10 I' 1 II 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 B I 1 I I I 8 I 3 R I I I I I I 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. 156 I t I I I I. 1 8 I 1 lb I I I I I I E e 155 1 u I 8 1 i Strfisticcrl Secfion m ! 1 I I I 4 1 I I J 1 a 1 I I I I I I I I @ I 1 t I I 1 I 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 82 I I 1 R I 1 I I I - I e I c 575,262 37.888 86.173 2.025.268 53,5 I I 8 I I 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 04 I I 8 II I I 1 I 1 I 1 337.597 I 8 8 I I I I I 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 86 1 8 I 1 1 I 1 I 1 I - 70,508 58.232 98.113 - 8 I I 8 1 I I 1 1 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 I I 1 I t I I I 2.114.753 172.518 1.257.859 174,518 4,325.5 8 4 a I 1 I I 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 I i 1 I I I 8 I 1: 1 I I I I I II I I I 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 I 1 I 1 I I I I I 1 I I 1 1 1 B I 1 I 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 1 I I I I I l 1 1 I II I I 1 i 1 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 I 1 8 1 1 I I II 1 I 8 8 I I I 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 1 I I I I I I I I I 1 I I i 1 I 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 I I I 1 I I 8 I 1 I 995.3 72 ziUs.2 1.75 7.057 4.949.527 I 1 I 1 I 1 I u 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 I I 1 I I 1 I 1 I I 1 1 I I 1 I I 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 I I I 1 I I 1 21.502 19.712 (1.790) 1.710.810 1.451.831 (258.979) 1 I B I I I I 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 I I I a I I 1 I 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. I I I I 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 I 1 8 1 1 1 E I I I 1 I 1 I 1 1 I I 4 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 1 I I I I 1 I I 1 E 1 I I 1 B D 1 fl 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 I I I I 1 1 t I I I I R 4 1 f I 1 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 I I I I I 1 I 15.692 - - - I I 384.613 217.314 826.761 - 1 5 1 1 1 I - - - - I 1 1 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 116 I 1 I 1 I 1 I - - - - 1 I I I 1 I R 1 1 I I E P 1 anned 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) 972,641 118 I 1 I I I I I B I 1 I 1 I I 1 z I 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. 119 120 I I I R 1 I I 1 I I 1 I I I I I I 121 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 2,050.395 122 R 1 I 1 I I I I I I I 1; 1 I 1 I 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 2.050.395 124 1 I 1 I I I I I I I 1 1 1 I I 1 I 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) 126 I I 1 I 1 1 403.430 - I I I 4.076.859 100.884 13.698.30 7. I I I I I I I 1 I 1 Sewer Solid Waste Total - - 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) 181.950 128 I 1 I 1 I 1 1 I B I I II I I I 1 I 1 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 - 130 I 8 1 1 I I I I I I I I If I I 4 I I 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. 1 131 132 I 1 I I 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. I I 1 I 1 I 1 1 I I I 1 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 $ 4,191.084 134 1 I I 1 I I - I li 1 I - I I 1 1 I I 1 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 $ 1,555.508 136 1 I I I I I I I s c I I 1 I I 1 I 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 $366.680 138 1 I 1 1 I 1 I Y u I - 0 I I I 1 5 I I General 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 139 140 I I li t t I I t 1 1 1 t B t I 1 1 AGISNCY FUNDS 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 II t I: 1 I 1. 8 c I 1 1 I 1 t B I I 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 CITY OF CARLSBAD It 1 si 1 I, 1 I in progress - 1 1 1 E I I 1 e t 1 I 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 B 1 1. 1 II I U 1 1 1 1 R I II I) I 1 I 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 I I 1 1 1 I 1 t 1 I I I I I 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 1 1 r B I I 1 B i I I 1 I II T I 1 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 fl E I 1 II 1. I li I II I 1 I B I I I $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 a e 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 a Q) (Cont: e 0 3 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 0 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 @ 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 a 0 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 a a 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 - -1 l e --- - __ - 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. e e 0 a KP/rlG pe4.t dd October 9, 1992 a -- - ___--__ a Member Firm of . - - ~___ - Klynveld Pear Marwck Goerdeler