HomeMy WebLinkAbout1994-03-22; City Council; 12633; ACCEPTANCE OF 1992-93 SINGLE AUDIT REPORT\
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AB# U!Cp33 TITLE: DEPT
MTG, 03/22/94 ACCEPTANCE OF THE 1992-93 SINGLE AUDIT CITY
DEPT. FIN CITY
RECOMMENDED ACTION:
Accept the 1992-1993 Single Audit Report.
ITEM EXPLANATION:
In October 1984 the U.S. Congress enacted Public Law 98-502, commonly known as t:
Single Audit Act of 1984. Under this Act, local governments receiving federal financi
assistance exceeding $100,000 in a fiscal year must arrange for independent auditors
perform a Single Audit. The City of Carlsbad retained Conrad & Associates for fiscal ye
1992-1993.
The Single Audit Report is a collection of several documents. Presented here are t
Schedule of Federal Financial Assistance and various other reports on compliance with la1
and regulations. The general purpose financial statements, contained in the Comprehensi
Annual Financial Report (CAFR) are also considered part of the Single Audit. The CAI
was presented and accepted by the City Council on February 15, 1994.
In fiscal year 1992-1993, the City incurred expenditures eligible for federal reimburseme
totalling more than $3 million as reported on the Schedule of Federal Financial Assistan
(Exhibit 1). Actual cash received by year end, representing eligible expenditures of the prj
and current fiscal year, also totalled more than $3 million in 1992-1993.
The U.S. Department of Housing and Urban Development (HUD) continues to provide t
largest single source of federal funds received by the City. Eligible expenditures from t
Section 8 Voucher and Certificate Programs totalled approximately $2.5 million in 92-5
These programs provide rental assistance to over 400 families as well as funding t
administrative costs of the Housing Authority. In addition, the City spent approximatt
Program. This program provides assistance for various community support services a capital projects. These HUD grant funds are received directly from the federal govemmei
Federal grant funds are also passed through State or County agencies before bei
reimbursed to the City. These eligible expenditures totalled more than $313,000 in fisc
year 1992-1993 and include the following:
Senior Nutrition Program
$266,000 &I federal grant funds from HUD for its Commudiy Development Block Gra
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$106,000 To provide an average of 150 me,
per day both at the City's Senior Ceni
and for homebound senior citizens.
FEMA Assistance 128,000 For damage related to winter storm
January 1993.
Partnerships-for-Change Grant 79,000 For administrative expenditur
involved with the Library's continui
outreach program at the Centro
Infonnacion.
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PAGE TWO OF AGENDA BILL NO. /6$6 3 3
National Park Service Grant 800 Final reimbursement on an histoi
preservation study.
FISCAL IMPACT:
The audit report indicates that the City complied in all material respects with the laws a~
regulations governing these programs allowing for continuing federal financial assistanc
Some immaterial instances of noncompliance were noted, however, and are disclosed in t
Schedule of Findings and Recommendations on pages 13 and 14 of the audit report. Sti
has implemented procedures to satisfy these findings with no financial impact to the Ci
EXHIBITS:
1.
2. Comprehensive Annual Financial Report for the fiscal year ended June 30, 1993*
3.
Schedule of Federal Financial Assistance for the fiscal year ending June 30, 1993.
Schedule of Federal Financial Assistance and Independent Auditors' Reports for fisc
year ended June 30, 1993"
* On Ne with the City Clerk and the Finance Department
\ @ CITY OF CARLSBAD 0
Schedule of Federal Financial Assistance
For the fiscal year ended June 30, 1993
Federal Domestic Program Federal Feder Assistance Identification Assistance Assist Number Number Received (11 ExDendi
U.S. Department of Housing and Urban Development
Direct Assistance: Lower Income Housing Assistance Program 14.156 CA16EO77012 and
CA16EO77003/013 $2,064,231 2,097.t
Section 8 Housing Voucher Program 14.177 CA16V077002/005 339,141 353, f
Community Development Block Grant 14.218 B-92-MC-06-0563 409.767 266.;
Sub t o t a1 2,813,139 2.717 .!
U.S. DeRartment of Health and Human Services
San Diego: Pass-through from the County of
Senior Nutrition Program 13.635 30718E 65,308 76 f
U.S. DeRartment of Agriculture Pass-through from the County of San Diego: 29 L 29.176 Senior Nutrition Program 10.558 307183
U.S. Demrtment of the Interior Pass-through from the California Department of Parks and Recreation: National Park Service 15.904 06-91-60002 778
U.S. Department of Education Pass-through from the California 40-2251 State Library: 40-2422 Library Services 84.034 40-2576 53.238 78 2
U.S. Federal Emernencv Mananement Aaencv /FEMAL Pass-through from the California Office of Emergency Services: FEMA Assistance 83.516 979-073-11194 47.511 127,
Total federal financial assistance $3.oo9.15o3.030.
Tested as a major program.
(1) Based on actual cash receipts from July 1, 1992 through June 30, 1993.
See accompanying independent auditors' report.
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CARLSBAD REDEVELOPMENT AGENCY
Component Unit Financial Statements
Year Ended June 30, 1993 @
(With Independent Auditors' Report)
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Component Unit Financial Statements
Year Ended June 30, 1993
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Financial Section: - Pa
Independent Auditors' Report
Component Unit Financial Statements: e
Combined Balance Sheet - All Governmental Fund Types and Account Groups
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
Notes to Component Unit Financial Statements
Auditors' Opinion on Compliance with Audit Guidelines
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Special Revenue and Debt Service Funds L
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for California Redevelopment Agencies 11 *
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CERTIFIED PUBLIC ACCOUNT
1100 MAIN STREET, S
IRVINE. CALIFORNI, a ~SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 4
CONRAD
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The Board of Commissioners
Carlsbad Redevelopment Agency Carlsbad, California
0 INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the Carlsbad Redevelopr Agency, a component unit of the City of Carlsbad, as of and for the year ended June
1993, as listed in the table of contents. These component unit financial statements are responsibility of the management of the Carlsbad Redevelopment Agency. Our responsib is to express an opinion on these component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. TI standards require that we plan and perform the audit to obtain reasonable assurance a1 whether the component unit financial statements are free of material misstatement.
audit includes examining, on a test basis, evidence supporting the amounts and disclosure
the component unit financial statements. An audit also includes assessing the accoun principles used and significant estimates made by management, as well as evaluating overall component unit financial statement presentation. We believe that our audit prov a reasonable basis for our opinion.
In our opinion, the component unit financial statements referred to above present fairlj all material respects, the financial position of the Carlsbad Redevelopment Agency at J 30, 1993, and the results of operations for the year then ended, in conformity with gener
accepted accounting principles.
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October 8, 1993
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MEMBERS CF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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CARLSBAD REDEVJXOFMERT AGENCY
Csmbitied Balm@ Sheet
All Governmental Fund Types and Account Groups
(I! June 30, 1993
Governmental Fund lbes Accc un t GrouD Totr
Special Debt Capital Long-term [Memoran&
Revenue Service Prolects Debt 1993 e
Assets and Other Debits
Cash and investments (note 3) $2,301,076 1,739,951 2,836,635 - 6,877,662
Loan receivable 102,387 - - - 102,387 0 Taxes receivable 10,229 40,916 - - 51,145
Interest receivable 35,517 6,905 5,615 - 48,037
Amount available in debt service fund - - - 1,787,772 1,787,772
Amount to be provided for retirement
of advances - - - 7,924,846 7,924,846
Amount to be provided for retirement 0 of bonds - - - 9.397.228 9.397.228 -
Total assets and other debits $2.449.209 w 2,842.250 19.109,846 26,189,071 i
Liabilities and Fund Balances
Liabilities: 0
Accounts payable $ 127 - 35,222 - 35,349
Accrued expenses 8,026 - 13,547 - 21,573
Advances from the City of Carlsbad
(note 5) - - - 7,924,846 7,924,846
Bonds payable (note 5) - - - 11,185,000 11,185,000 1
Total liabilities 8,153 - 48.769 19,109,846 19.166.768 1
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Fund balances:
Reserved for loan receivable (note 7) 102,387 - - - 102,387
Reserved for debt service (note 7) - 1,787,772 - - 1,787,772
Reserved for low and moderate income
Reserved for encumbrances (note 7) 19,290 - 192,242
Unreserved :
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housing (note 7) 2,319,379 - - - 2,319,379 - 211,532
Designated for approved capital
projects (note 7) - - 2,459,371 - 2,459,371 a
141,868 -
Total fund balances 2.441.056 1.787.772 2.793.481 - 7,022.309 -
Total liabilities and fund
Undesignated (note 7) - - 141.868 -
balances $2.449.209 1.787.772 2,842.250 19.109.8 46 26.189.077 2 h
See accompanying notes to component unit financial statements.
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a CARLSBAD REDEYEWPMEliT AGElVCX
ma itatam ~f Rerenuti, iiptiuiturss
and Changes in Fund Balances - All Covermental Fund Types
Year Ended June 30. 1993 e
Totals
Special Debt Capital fMemorandum On Ivl
Revenue Service Projects 1993 1992
Revenues : 0
Tax increment $ 330,515 1,322,061 - 1,652,576 1,588.36
Intergovernmental - - 29,800 29,800 -
Charges for services - - 750 750 -
Interest 125,715 121,515 109,520 356,750 450,40
Miscellaneous 4.379 - 14.795 19.174 - 0
Total revenues 460.609 1,443.576 154.865 2.059.050 2.038.77
Expendi t ures :
General government 81,437 - 753,104 834,541 752,60
Capital outlay - - 231,860 231,860 589.49
Debt service:
Principal - 290.000 - 290, OOO 299,80(
Interest and fiscal charges - 1,329,644 - 1,329,644 1,364,OS
State mandated payment (note 9) - 257,278 - 257.278 -
Total expenditures 81.437 1,876,922 984.964 2.943.323 3,005.95
Excess (deficiency) of
revenues over (under)
expenditures 379.172 1433.346) /830,099) (884,273) f967.18
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Other financing sources (uses):
Operating transfers in - 464,061 - 464,061 1,125,23
Operating transfers out - - (464,061) (464,061) (1,125.23
Proceeds from advances from
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the City of CarlsbaU (note 5) - - 464,061 464,061 500,731
bond refunding 36.616 - - 36.616 - Administrative fee received froa
Total other financing sources
(uses) 36.616 464.061 - 500,677 500.73:
Excess (deficiency) of revenues
and other financing sources
other financing uses 415,788 30,715 (830,099) (383,596) (466,451
Fund balances at beginning of year 2.025.268 1.757.057 3.623.580 7.405.905 7.872.35:
e over (under) expenditures and
Fund balances at end of year $2.441.056 LLmiUw-w
See accompanying notes to component unit financial statements.
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GWLSBAD REDEVEIDPMEKl' AGEACY 0
Corabined Statement of Revenues, Expenditures
Special Revenue and Debt Service Funds
Year Ended June 30, 1993
and Wges in Rmd Balances - Rudget and Actual -
Special Revenue Debt Service
Actual on Actual on
Budgetary Variance- Budgetary Va
Basis Favorab 1 e Basis Fa
Budget (Note 2) 1Unfavorablel Budnet (Note 21 (unl
Tan increment $ 400,OOO 330.515 (69.485) 1.600,OOO 1,322,061 (:
Interest 100,ooO 125,715 25,715 60,000 121,515
Miscellaneous - 4.379 4.379 - -
Revenues :
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Total revenues 500.~ 460.609 139.391) 1.660.000 1.443.576 (I
e Expenditures:
General government 126,925 100,727 26,198 - -
Debt service:
Principal - - - 290,000 290,000
Interest and fiscal charges - - - 847,939 865,583
State mandated payment (note 9) - - - 257,278 257,278
Total expenditures 126.925 100.727 26.198 1.395.217 1.412.861
Excess (deficiency) of
revenues over (under)
expenditures 373.075 359.882 113.193) 264.783 30,715 (
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Other financing sources (uses):
Operating transfers in - - - - 464,061
Administrative fee received
from bond refunding - 36.616 36,616 - -
Total other financing 0 sources (uses) - 36.616 36.616 - 464.061
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures and 0 other financing uses 373,075 396,498 23,423 264,783 494,776
Fund balances at beginning of year 2.025.268 2.025.268 - 1,757.057 1.757.057
Fund balances at end of year s2.398.3432.421.766 23.423 2.021.8402.251.833
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See accompanying notes to component unit financial statements.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
Year Ended June 30, 1993
(1, Organization and Summarv o f Simificant Accounting; Policies
The Carlsbad Redevelopment Agency (the Agency) was established in July 1976 7
the adoption of Ordinance No. 1191 by the Carlsbad City Council pursuant to
State of California Health and Safety Code. The Agency has the broad authorit:
acquire, rehabilitate, develop, administer and sell or lease property. The Agency is subject to federal or state income taxes.
The principal objectives of the Agency are to eliminate blighted influences within "Village Area" of the City of Carlsbad, stimulate and attract private investm generate added employment through increased specialty goods and services and eq the City's sales tax revenue.
The Agency is an integral part of the reporting entity of the City of Carlsbad City). The funds and account group of the Agency have been included within the sc of the general purpose financial statements of the City because the City COI exercises oversight responsibility over the operations of the Agency. Only the f and account group of the Agency are included herein; therefore, these final statements do not purport to represent the financial position or results of operatior the City of Carlsbad, California.
The accounting policies of the Agency conform to generally accepted accou
significant policies:
(a) Basis of Presentation
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California Community Redevelopment Law, now codified as Part 1, Division 24, of
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principles as applicable to governmental units. The following is a summary of the 1
e The accounts of the Agency are organized on the basis of funds and an acc group, each of which is considered to be a separate accounting entity. operations of each fund and account group are accounted for by providi separate set of self-balancing accounts that comprise its assets, liabilities, balance, revenues, and expenditures. The various funds and account grou~ summarized by type in the financial statements. The fund types and acc group used by the Agency are as follows:
GOVERNMENTAL FUND TYPES
Governmental funds are used to account for the Agency's expendable fina resources and related liabilities. The measurement focus is upon determin
of changes in financial position. The following are the Agency's governm
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fund types:
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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(1, Organization and Summarv of Simificant Accounting Policies., (Continued)
(a) Basis of Presentation. (Continuedl e
Special Revenue Fun&
Special revenue funds are used to account far revenues derived specific sources (other than major capital projects) that are restricte law or administrative regulation to expenditures for specified purposes.
Debt Service Funds
Debt service funds are used to account for the accumulation of resoi for, and payment of general long-term debt principal, interest and re1
costs.
Capital Proiects Funds
Capital projects funds are used to account for financial resources t used for the acquisition or construction of major capital facilities.
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GENERAL LONG-TERM DEBT ACCOU NT GROUP
This account group is used to establish accounting control and accountabilit the Agency's general long-term debt. This account group is used to accow
all long-term obligations of the Agency.
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e (b) Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measurement f Accordingly, only current assets and current liabilities are included on
balance sheets, and the reported fund balance provides an indication of avai: spendable resources. Operating statements for governmental fund types r
increases (revenues) and decreases (expenditures) in available spendable resoi
The modified accrual basis of accounting is utilized by the governmental
types. Revenues are recognized when susceptible to accrual, i.e., measurable and available. Available means collectible within the cwent F
or soon enough thereafter to be used to pay liabilities of the current period.
Revenues that are accrued include the tax increment on real property taxe interest income.
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a CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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(1) Organization and Summary of Simificant Accounting Policies. (Continued)
(b) Measurement Focus a nd Basis for Account ing. (Co ntinuedl
Real property taxes are levied on October 15 against owners of record at Mi I, The taxes are due in two installments, on November 1 and Febrvary 1,
become delinquent after December 10 and April 10, respectively. Tax 1
attach annually as of 12:Ol a.m. on the first day of March in the fiscal years which the taxes are levied. Under the provisions of NCGA Interpretatio property tax revenue is recognized in the fiscal year for which the taxes 1
been levied, provided it is collected within 60 days of the end of the fiscal yez
Governmental fund expenditures are recognized when the liability is incm except for principal and interest on long-term debt which is recognized when
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0 (c) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and a commitments for the expenditure of monies are recorded in order to reserve portion of the applicable appropriation, is employed as an extension of fa budgetary control in the governmental funds. Encumbrances outstandin year-end do not constitute expenditures or liabilities, but are reporta reservations of fund balance for subsequent-year expenditures.
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(d) Cash and Investments
The Agency participates in the pooled cash and investment fund of the Cir
Agency's equity in the pooled cash is included in the financial statements as and investments. Interest earned as a result of the pooling is allocated tc Agency based on its average monthly balances.
0 Carlsbad. Pooled investments are stated at cost or amortized cost.
(e) Compensated Absences
Vacation pay is payable to employees at the time used or upon terminatic employment. The cost of accumulated vacation expected to be paid in the
12 months is recorded as a fund liability; currently no amounts are expected paid after 12 months.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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ill Organization and Summarv o f Simificant Account ine. Policies. (Co ntinuedl
(f) Total Columns e
Total columns on the accompanying combined financial statements are captio “Totals (Memorandum Only)” to indicate that they are presented only facilitate financial analysis. Data in these columns do not present financ position, results of operations, or changes in fund balance in conformity v generally accepted accounting principles. Such data is not comparable t consolidation. Interfund eliminations have not been made in the aggregation
this data.
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(2) Budaetarv Data
8 The budget for the Agency is established by the City of Carlsbad. The City Manage authorized to make transfers of appropriated amounts within a fund for up to $25,C Revisions that alter the total appropriations of any fund must be approved by the C Council. A mid-year budget review is conducted each year. Any major changes to adopted budget are approved by the City Council at that time.
Budgets are adopted on the modified accrual basis, except that encumbrances treated as budgeted expenditures in the year purchases are committed. Expenditi may not exceed budgeted appropriations at the departmental level. Unencumbe appropriations lapse at year-end. Annual budgets are adopted for the special reve and debt service funds.
The following schedule is a reconciliation of the budgetary and GAAP fund balances:
SDecial Revenue Debt Service
Fund balance - budgetary basis $2,421,766 2,251,833 Encumbrances outstanding at year-end 19,290
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- e Debt service on advances from City of Carlsbad - not budgeted - (464.061 l
Fund balance - GAAP basis $2.441.056 l=lzaJu
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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(3) Cash and Investments
The Agency participates in the pooled cash fund of the City. a
Authority for Deposits and Investment 8
The Agency's investment policy and state statutes authorize the Agency to invl demand and time deposits, obligations of the U.S. Treasury, its agencies instrumentalities, commercial paper rated A-1 by Standard and Poor's Corporat P-1 by MOOCly's Commercial Paper record, banker's acceptances with a ma maturity of 270 days, repurchase and reverse repurchase agreements, certifica deposit with national and state licensed or chartered banks or federal or state Si and loan associations, money market and mutual funds whose portfolios consist ( or more of the foregoing investments, and the State Treasurer's investment pool.
State statutes require that all deposits be insured or collateralized. Deposi holding public funds on deposit are required to maintain collateral in the form of of securities with the agent of the depository having a market value of at least 50 percent in excess of the total amount of all public funds on deposit.
Classification of Investments bv C redi t Risk:
As defined in Governmental Accounting Standards Board Statement No. 3 Agency's investments in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are held by the Agency or its agent in the Agency's name.
Category 2 - Uninsured and unregistered investments, for which the securities are held by the counterparty's trust department or agent in the Agency's name.
e Category 3 - Uninsured and unregistered investments, for which the securities are held by the counterparty or by its trusi department or agent, but not in the Agency's name.
At June 30, 1993, the Agency had the following investments which ar categorizable by credit risk:
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e Carrying I nves t men t Amount
Investment in mutual funds $3,994,188
a Investment in City's pooled cash fund 2.883.414
$6.877.662
The carrying amount equals the market value.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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(4) Pension Plan
The Agency's employees are included in the City's pension F:km which 1s administr
by the California Public Employees Retirement System (PERS). PERS is an a multiple-employer public employee retirement system that acts as a corn investment and administrative agent for participating public entities within the S of California .
All full-time employees are eligible to participate as members of the PERS. Ben1 vest after an employee has been a member of the plan for five years. Employees eligible to retire after age 50 with 5 years of credited service. Annual retirer benefits are determined based on age at retirement, the length of membership ser and the amount of earnings based on the highest twelve consecutive months aver The PERS also provides death and disability benefits. These benefit provisions anc other requirements are established by state statute.
Employees are required to make contributions equaling 7% of gross pay. This is pail the City for the benefit of the employees in lieu of salary. The City is also require1 contribute the remaining amounts necessary to fund the benefits for its members, u
adopted by the PERS Board of Administration.
Additional disclosures required by Governmental Accounting Standards BI Statement No. 5 are not available for the Agency as a separate entity. information for the City's reporting entity is presented in the Comprehensive An Financial Report of the City of Carlsbad.
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the actuarial basis recommended by the PERS actuaries and actuarial consultants
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(51 Long-term Debt
The following is a summary of changes in long-term debt for the year ended June 1993:
0 Principal Principal Balance at Additional Principal Balance at July 1. 1992 Obligations Retirements June 30. 199
Advances from
the City of Car 1 sbad $ 7,460,785 464,061 - 7,924,846
Bonds payable 11.475.000 - 290.000 11,185.000
%18.935.785 464.061 290.000 19.109.846
e Since activation of the Redevelopment Agency in July 1976, the City has advanced Agency monies for approved expenditures. Advances from the City bear interest ec to the City's interest rate received on pooled investments. There is no stated matu
date.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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(5, Long-term Debt. (Continued)
Bonds payable consist of $11,185,000 in 1988 Carlsbad Housing and Redevelopn
to $595,000 on April 1 of each year through 2003, a principal payment of $2,890,001
April 1, 2007, and a 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 sinking f redemption which amounts are reflected in the debt service requirements bel Interest is payable each year on October 1 and April 1 at rates varying from 5.99
7.8% per annum.
Debt service requirements to maturity for the bonds, including sinking fund payme
are as follows:
1994 $ 1,135,828
1996 1,146,598
1997 1,148,522
1998 1,148,062
1999-2003 5,806,054
2004-2008 5,876,260 2009-201 1 3.567.180
20,970,726
e Commission Tax Allocation Bonds. Principal is due in amounts ranging from $305,
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1995 1 ,142,222 0
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Less amounts representing interest (9.785.726)
Bonds payab l e $11.185.o00 a
At June 30, 1993, the Agency was in compliance with all significant debt covenants.
/6) Obligations Under Operating Leases a
In June 1988, the Agency entered into an agreement to lease a parking lot from
private party. The lease requires monthly rental payments for twenty years. Toti annual rent payments are $44,091 for fiscal year ending June 30, 1994 with annui cost of living adjustments required and market value adjustments required every years after fiscal year ending June 30, 1988. The future minimum rental payment have been calculated with a 6% annual cost of living adjustment.
In May 1990, the Agency entered into an agreement to lease a parking lot 01
Carlsbad Village Drive from a private party. The lease requires monthly renta
payments of $4,350 commencing July 1, 1991 for five years. Total annual ren expense is $52,200 for fiscal year ending June 30, 1994 and $43,500 for fiscal yea
The following is a schedule by year of future minimum rental payments require1
under operating leases at June 30, 1993:
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a ending June 30, 1995.
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CARLSBAD REDEVELOPMENT AGENCY e
Notes to Component Unit Financial Statements
(Continued)
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16) Obligations U nder (herating Leases. (C ontinued)
0 Year Ending June 30, Annual Rental ?aments
1994 $ 96,291
1995 90,236
1996 49,541
1997 52,513
1998 55,664 Thereafter 777.717
Total minimm lease payments %1.111.961
17) Fund Balances e
Reserves for the loan receivable and low and moderate income housing ar established to show that certain assets are already committed for other purposes an are not available for discretionary expenditures.
Reserve for debt service represents resources legally restricted to the payment c general long-term debt principal and interest maturing in future years.
Reserve for encumbrances represents commitments related to unperforme contracts for services and undelivered goods.
Unreserved-designated for approval capital projects represents the fund balanc expected to be used for the acquisition or construction of major capital facilities.
Unreserved-undesignated balances represent the fund balance remaining afte reduction for reserved and designated fund balances.
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0 18) 0 ther Reauired Individual Fund Disclosures
Expenditures exceeded appropriations in the following fund:
Emenditure ADDroDriation
e Debt service fund $865,583 847,939
The excess of expenditures over appropriations in the debt service fund relates fiscal charges.
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CARLSBAD REDEVELOPMENT AGENCY a
Notes to Component Unit Financial Statements
(Continued) e
19, State Mandated Pane nt
The Agency was required by the State Department of Finance, pursuant to a 1
dated October 1, 1992, to shift a portion of tax increment money to the Educat Revenue Augmentation Fund. The Agency funded its $257,278 payment from A2 tax increment funds.
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(10) su bseaue nt Events a
On September 1, 1993, the Agency issued $15,495,000 in tax allocation bonds. bonds were issued to defease the outstanding 1988 tax allocation bonds, and to pr money to finance redevelopment activities within the project area. The interesi is 5.25%, payable semi-annually.
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CERTIFIED PUBLIC ACCOUNT/
1100 MAIN STREET, St
IRVINE. CALIFORNIA
CONRAD
0 %SSOC~TES A WRTNERSHIP INCLUDING PROFESSIONAL CORWRATIONS (714) 47
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The Board of Commissioners
Carlsbad Redevelopment Agency a Carlsbad, California
Auditors' Opinion On Compliance With Audit Guidelines for California RedeveloDment Agencies
a We have audited the combined financial statements of the Carlsbad Redevelopmc Agency (a component unit of the City of Carlsbad, California) as of and for the year end
June 30, 1993, and have issued our report thereon dated October 8, 1993. We conduci our audit in accordance with generally accepted auditing standards. Those standai require that we plan and perform the audit to obtain reasonable assurance about whet1
the financial statements are free of material misstatement.
Compliance with laws and regulations applicable to the Carlsbad Redevelopment Agency the responsibility of the Carlsbad Redevelopment Agency's management. As part obtaining reasonable assurance about whether the financial statements are free material misstatement, we performed tests of the Carlsbad Redevelopment Agenc compliance with provisions of laws and regulations contained in the Guidelines I ComDliance Audits of California RedeveloDment APencies issued by the State Controlle Office, Division of Local Government Fiscal Affairs.
The results of our tests indicated that, with respect to the items tested, the Carlst Redevelopment Agency complied, in all material respects, with the provisions referred the preceding paragraph. With respect to items not tested, nothing came to our attenti that caused us to believe that the Carlsbad Redevelopment Agency had not complied, all material respects, with those provisions.
This report is intended for the information of the Carlsbad Redevelopment Agency, a
the State Controller's Office. However, this report is a matter of public record and
distribution is not limited.
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MEMBERS OF AICPA AND CALIFORNIA SOCiEiY OF CERTIFIED PUBLIC ACCOUNTANTS
VEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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CITY OF CARLSBAD
Carlsbad, California
Single Audit Report on
For the fiscal year ended June 30, 1993
a Federal Assistance Programs
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0 CITY OF CARLSBAD
Single Audit Report on Federal Assistance Programs
For the fiscal year ended June 30, 1993 e
TABLE OF CONTENTS 0
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Independent Auditors' Report on Schedule of Federal Financial Assistance
Schedule of Federal Financial Assistance
Independent Auditors' Report on Internal Control Structure Based on an Audit of General Purpose or Basic Financial Statements Performed in Accordance
with Government Auditing Standards
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Independent Auditors' Report on Internal Control
Structure Used in Administering Federal 0 Financial Assistance Programs
Independent Auditors' Report on Compliance Based on an Audit of General Purpose or Basic Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditors' Report on Compliance
with Specific Requirements Applicable to Major Federal Financial Assistance Programs
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Independent Auditors' Report on Compliance with General Requirements Applicable to Federal Financial Assistance Programs
Independent Auditors' Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions
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0 Findings and Recommendations
Status of Prior Audit Findings
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CERTIFIED PUBLIC ACCOUNT
1100 MAlN STREET, 5
0 kSSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 4
CONW
IRVINE, CALIFORNI,
The Honorable Members of City Council
City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE a
We have audited the general purpose financial statements of the City of Carl California, as of and for the year ended June 30, 1993, and have issued our report thc dated October 8, 1993. These general purpose financial statements are the responsibili the management of the City of Carlsbad, California. Our responsibility is to expre opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing stanc Government Auditing Standards, issued by the Comptroller General of the United States the provisions of Office of Management and Budget Circular A-128, "Audits of Statc Local Governments". Those standards and OMB Circular A-128 require that we plar perform the audit to obtain reasonable assurance about whether the general pui financial statements are free of material misstatement, An audit includes examining,
test basis, evidence supporting the amounts and disclosures in the general purpose fina statements. An audit also includes assessing the accounting principles used and signif estimates made by management, as well as evaluating the overall financial state presentation. We believe that our audit provides a reasonable basis for our opinion.
Our audit was conducted for the purpose of forming an opinion on the general pul financial statements of the City of Carlsbad, California, taken as a whole. accompanying schedule of federal financial assistance is presented for purposes of addit analysis and is not a required part of the general purpose financial statements. information in that schedule has been subjected to the auditing procedures applied ir audit of the general purpose financial statements and, in our opinion, is fairly present1 all material respects in relation to the general purpose financial statements taken as a w
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October 8, 1993
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MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
0 CITY OF CARLSBAD
Schedule of Federal Financial Assistance
For the fiscal year ended June 30, 1993
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Federal Domestic Program Federal Federal Assistance Identification Assistance Assistan Number Number Received (1) Exuenditu
U.S. Department of Housine and Urban Develoument Direct Assistance: Lower Income Housing Assistance Program 14.156 CA16EO77012 and CA16EO77003/013 $2,064,231 2,097,62!
Section 8 Housing Voucher Program 14.177 CA16V077002/005 339,141 353,62!
Community Development Block Grant 14.218 B-92-Mc-06-0563 409.767 266,251
Sub t o t a1 2,813,139 2,717.501 0
U.S. Department of Health and Hman Services
San Diego: Pass-through from the County of
Senior Nutrition Program 13.635 30718E 65,308 76,69 e
U.S. Department of Agriculture Pass-through from the County of San Diego: Senior Hut r i t ion Program 10.558 30718E 29,176 29,l;
U.S. Department of the Interior Pass-through from the California Department of Parks and Recreation: National Park Service 15 -904 06-91-60002 778 7:
U.S. Department of Education Pass-through from the California 40-2251 e State Library: 40-2422 Library Services 84.034 40-2576 53,238 78,5'
U.S. Federal Emernencv Mananement Agencv fF'EMA1 Pass-through from the California Office of Emergency Services: FEMA Assistance 83.516 979-073-11194 47.511 127.9
Total federal financial assistance $3.oo9.15o3.030.6
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* Tested as a major program.
(1) Based on actual cash receipts from July 1, 1992 through June 30, 1993.
See accompanying independent auditors' report.
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CERTIFIED PUBLIC ACCOUNT.
{WN€, CAL\FORN\f e %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 4
1100 MAIN STREET, 5
CONRAD
The Honorable Members of City Council 0 City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
0 WITH GOVERNMENT AUDITING STANDARDS
We have audited the general purpose financial statements of the City of Carl
California, as of and for the year ended June 30, 1993, and have issued our report tht
dated October 8, 1993.
We have conducted our audit in accordance with generally accepted auditing stand Government Auditing Standards, issued by the Comptroller General of the United States the provisions of Office of Management and Budget Circular A-128, "Audits of State Local Governments''. Those standards and OMB Circular A-128 require that we plar perform the audit to obtain reasonable assurance about whether the general pur financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the of Carlsbad, California, for the year ended June 30, 1993, we considered its internal co structure in order to determine our auditing procedures for the purpose of expressin1 opinion on the general purpose financial statements and not to provide assurance or internal control structure.
The management of the City of Carlsbad, California, is responsible for establishing maintaining an internal control structure. In fulfilling this responsibility, estimates judgments by management are required to assess the expected benefits and related cos internal control structure policies and procedures. The objectives of an internal COI structure are to provide management with reasonable, but not absolute, assurance assets are safeguarded against loss from unauthorized use or disposition, and transactions are executed in accordance with management's authorization and recc properly to permit the preparation of financial statements in accordance with gene
accepted accounting principles. Because of inherent limitations in any internal cor structure, errors or irregularities may nevertheless occur and not be detected. k projection of any evaluation of the structure to future periods is subject to the risk procedures may become inadequate because of changes in conditions, or that effectiveness of the design and operation of policies and procedures may deteriorate.
For the purposes of this report, we have classified the significant internal control struc policies and procedures in the following categories: revenuedrece purchases/disbursements and payroWpersonne1.
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The Honorable Members of City Council
City of Carisbad, California Page Two
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For all of the control categories listed above, we obtained an understanding of the desigI relevant policies and procedures and whether they have been placed in operation, and assessed control risk.
Our consideration of the internal control structure would not necessarily disclose all mati in the internal control structure that might be material weaknesses under stand;
established by the American Institute of Certified Public Accountants. A material weak]
is a reportable condition in which the design or operation of one or more of the inte
control structure elements does not reduce to a relatively low level the risk that error irregularities in amounts that would be material in relation to the general purpose finan
statements being audited may occur and not be detected within a timely period by emplo! in the normal course of performing their assigned functions. We noted no matters invol the internal control structure and its operation that we consider to be material weakne as defined above.
However, we noted certain matters involving the internal control structure and its opera that we have reported to the management of the City of Carlsbad, California, in a sepa: letter dated October 8, 1993.
This report is intended for the information of City management and the agencies provided federal financial assistance to the City. This restriction is not intended to limit distribution of this report, which is a matter of public record.
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CERTlFl ED PUBLIC ACCOUNTAN
1100 MAIN STREET, SUIT
IRVINE, CALIFORNIA 92 ~SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 474-2
CONRAD
The Honorable Members of City Council City of Carlsbad, California a
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
a We have audited the general purpose financial statements of the City of Carlsb California, for the year ended June 30, 1993, and have issued our report thereon da October 8, 1993. We have also audited the City's compliance with requirements applica to major federal financial assistance programs and have issued our report thereon da October 8, 1993.
We conducted our audits in accordance with generally accepted auditing standai Government Auditing Standards, issued by the Comptroller General of the United States, Office of Management and Budget (OMB) Circular A-128, "Audits of State and LC Governments". Those standards and OMB Circular A-128 require that we plan and perfc the audit to obtain reasonable assurance about whether the general purpose financ statements are free of material misstatement and about whether the City of Carlst California, complied with laws and regulations, noncompliance with which would be mate
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to a major federal financial assistance program.
In planning and performing our audits for the year ended June 30, 1993, we considered internal control structure of the City of Carlsbad, California, in order to determine auditing procedures for the purpose of expressing our opinions on the general puq financial statements of the City of Carlsbad, California, and on the compliance of the ( of Carlsbad, California with requirements applicable to major programs and to report on internal control structure in accordance with OMB Circular A-128. This report addrei our consideration of internal control structure policies and procedures relevant compliance with requirements applicable to federal financial assistance programs. We k addressed internal control structure policies and procedures relevant to our audit of general purpose financial statements in a separate report dated October 8, 1993.
The management of the City of Carlsbad, California, is responsible for establishing maintaining an internal control structure. In fulfilling this responsibility, estimates judgments by management are required to assess the expected benefits and related cos1 internal control structure policies and procedures. The objectives of an internal cor structure are to provide management with reasonable, but not absolute, assurance
assets are safeguarded against loss from unauthorized use or disposition, that transacl
are executed in accordance with management's authorization and recorded proper11
permit the preparation of general purpose financial statements in accordance with genei
accepted accounting principles, and that federal financial assistance programs are man;
in compliance with applicable laws and regulations. Because of inherent limital
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MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
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The Honorable Members of City Council
City of Carlsbad, California Page Two
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in any internal control structure, errors, irregularities, or instances of noncompliance nevertheless occur and not be detected. Also, projection of any evaluation of the stn to future periods is subject to the risk that procedures may become inadequate becau changes in conditions or that the effectiveness of the design and operation of policie! procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control stru policies and procedures used in administering federal financial assistance programs ii following categories .
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Accounting Controls
0 PurchasedDisbursements
a Payroll/Personnel
0 Revenues/Receipts a
Administrative Controls
General Requirements:
0 Political Activity 0 0 Davis-Bacon Act
0 Civil Rights
0 Cash Management
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0 Federal Financial Reports
0 Allowable Costs/Cost Principles
0 Drug-Free Workplace Act
0 Administration Requirements
Relocation Assistance and Real Property Management
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Specific Requirements:
0 Types of Services e 0 Eligibility a
0 Reporting
0 Environmental Review
0 Program Income
a Monitoring Subrecipients
a Claims for Reimbursements
0 Specific Requirements
Matching, Level of Effort, or Earmarking
0 Release of Funds
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For all of the internal control structure categories listed above, we obtainec
understanding of the design of relevant policies and procedures and whether they have placed in operation, and we assessed control risk. a
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The Honorable Members of City Council
Page Three
City of Carlsbad, California
During the year ended June 30, 1993, the City of Carlsbad, California, expended 81 pl of its total federal financial assistance under major federal financial assistance prograr
We noted certain matters involving the internal control structure and its operation th consider to be reportable conditions under standards established by the American Institi Certified Public Accountants. Reportable conditions involve matters coming tc
control structure that, in our judgment, could adversely affect the City of Car California's ability to administer federal financial assistance programs in accordanct
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attention relating to significant deficiencies in the design or operation of the in
a applicable laws and regulations.
These reportable conditions are found in the Findings and Recommendations se Findings I, 2 and 3,
A material weakness is a reportable condition in which the design or operation of ( more of the internal control structure elements does not reduce to a relatively low levc risk that noncompliance with laws and regulations that would be material to a ft financial assistance program may occur and not be detected within a timely peric employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures us administering federal financial assistance would not necessarily disclose all matters i internal control structure that might be reportable conditions and, accordingly, wou necessarily disclose all reportable conditions that are also considered to be ma weaknesses as defined above. However, we believe none of the reportable conc described above is a material weakness.
We also noted other matters involving the internal control structure and its operatioi we have reported to the management of the City of Carlsbad, California, in a separate dated October 8, 1993.
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This report is intended for the information of the City management, and the agencie:
provided federal financial assistance to the City. This restriction is not intended to lim distribution of this report, which is a matter of public record. a
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1100 MAIN STREET, SUI1
IRVINE. CALIFORNIA 9;
.CONRAD
a ; A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 474-;
The Honorable Members of City Council 0 City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE a WITH GOVERNMENT AUDITING STANDARDS
We have audited the general purpose financial statements of the City of Carls California, as of and for the year ended June 30, 1993, and have issued our report the
dated October 8, 1993.
We conducted our audit in accordance with generally accepted auditing standi Government Auditinn Standards, issued by the Comptroller General of the United States, the provisions of Office of Management and Budget Circular A-128, "Audits of State Local Governments". Those standards and OMB Circular A-128 require that we plan perform the audit to obtain reasonable assurance about whether the general pur financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City of Carl California, is the responsibility of the management of the City of Carlsbad, California
statements are free of material misstatement, we performed tests of the City's compl
with certain provisions of laws, regulations, contracts, and grants. However, our obje
was not to provide an opinion on overall compliance with such provisions. Accordingl! do not express such an opinion.
The results of our tests indicate that for the items tested, the City of Carlsbad, Califc complied, in all material respects, with the provisions referred to in the prec paragraph. With respect to items not tested, nothing came to our attention that caused believe that the City had not complied, in all material respects, with those provisions. results of our audit procedures disclosed no immaterial instances of noncompliance wii requirements referred to above.
This report is intended for the information of City management and agencies that prc 0 federal financial assistance to the City. This restriction is not intended to limi distribution of this report, which is a matter of public record.
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
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1100 MAIN STREET, SUI'
IRVINE, CALIFORNIA 9 0 %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (71 4) 474-
CONRAD
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The Honorable Members of City Council City of Carlsbad, California
e INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
We have audited the general purpose financial statements of City of Carlsbad, Californi of and for the year ended June 30, 1993, and have issued our report thereon dated Octob
1993.
We have also audited compliance by the City of Carlsbad, California, with the requiren governing types of services allowed or unallowed; eligibility; matching, level of effor
earmarking; reporting; release of funds: environmental review: program income: mOIliti subrecipients; and claims for reimbursements that are applicable to each of its major fel financial assistance programs, which are identified in the accompanying schedule of fe financial assistance, for the year ended June 30, 1993. The management of the Ci Carlsbad, California, is responsible for the City's compliance with those requirements. responsibility is to express an opinion on compliance with those requirements based a
audit .
We conducted our audit of compliance with those requirements in accordance with gent accepted auditing standards, Government Auditing Standards, issued by the Compt General of the United States, and the Office of Management and Budget Circular A "Audits of State and Local Governments". Those standards and OMB Circular A-128 rz that we plan and perform the audit to obtain reasonable assurance about whether me * noncompliance with the requirements referred to above occurred. An audit in1 examining, on a test basis, evidence about the City's compliance with those requirer We believe that our audit provides a reasonable basis for our opinion.
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The results of our audit procedures did not disclose any immaterial instanc noncompliance with the requirements referred to above.
In our opinion, the City of Carlsbad, California, complied, in all material respects, wii requirements governing types of services allowed or unallowed; eligibility; matching, le
effort, or earmarking; reporting; release of funds; environmental review; program in
monitoring subrecipients; and claims for reimbursements that are applicable to each
major federal financial assistance programs for the year ended June 30, 1993. e
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City of Carlsbad, California
Page Two
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This report is intended for the information of City management and agencies that prc federal financial assistance to the City. This restriction is not intended to Iimi distribution of this report, which is a matter of public record. 0
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CERTIFIED PUBLIC ACCOUNT,
1100 MAIN STREET, S
I RVI N E, CALI FORN IP e %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 4;
.CONRAD
The Honorable Members of City Council City of Carlsbad, California
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INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH GENERAL REQUIREMENTS APPLICABLE TO
FEDERAL FINANCIAL ASSISTANCE PROGRAMS m
We have audited the general purpose financial statements of City of Carlsbad, Californ of and for the year ended June 30, 1993, and have issued our report thereon dated Octo1 1993.
We have applied procedures to test whether the City of Carlsbad, California, has corn with the following requirements applicable to its federal financial assistance program: major programs of which are identified in the schedule of federal financial assistance the year ended June 30, 1993: political activity, Davis-Bacon Act, civil rights, management, relocation assistance and real property management, federal financial re1 allowable costs/cost principles, Drug-Free Workplace Act and administrative requiremei
Our procedures were limited to the applicable procedures described in the Offic Management and Budget's "Compliance Supplement for Single Audits of State and .
of which is the expression of an opinion on the City's compliance with the requirer listed in the preceding paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no ma1 instances of noncompliance with the requirements listed in the second paragraph of report. With respect to items not tested, nothing came to our attention that caused believe that the City of Carlsbad, California, had not complied, in all material respects, those requirements. Also, the results of our procedures did not disclose any immat instances of noncompliance with those requirements.
This report is intended for the information of City management and agencies that pro7 federal financial assistance to the City. This restriction is not intended to limit distribution of this report, which is a matter of public record.
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Governments". Our procedures were substantially less in scope than an audit, the obje
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MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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CERTIFIED PUBLIC ACCOUNTAI
1100 MAIN STREET, SUI
IRVINE. CALIFORNIA 9 ~SSOC~A~ES A PARTNERSHIP INCLUDING PROFE5SIONAL CORPORATIONS (714) 474
CONRAD
The Honorable Members of City Council City of Carlsbad, California
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INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REOUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 0
We have audited the general purpose financial statements of City of Carlsbad, Californi of and for the year ended June 30, 1993, and have issued our report thereon dated Octob 1993.
In connection with our audit of the 1993 general purpose financial statements of the Ci
Carlsbad, California, and with our consideration of the City's internal control structure to administer federal financial assistance programs, as required by Office of Manage
and Budget Circular A-128, "Audits of State and Local Governments", we sek transactions applicable to certain nonmajor federal financial assistance programs foi year ended June 30, 1993.
As required by OMB Circular A-128, we have performed auditing procedures to compliance with the requirements governing types of services allowed or unallc eligibility, and special requirements that are applicable to those transactions. procedures were substantially less in scope than an audit, the objective of which is expression of an opinion on the City's compliance with these requirements. Accordingl: do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no mal instances of noncompliance with the requirements listed in the preceding paragraph. respect to items not tested, nothing came to our attention that caused us to believe tha City of Carlsbad, California, had not complied, in all material respects, with requirements. Also, the results of our procedures did not disclose any immaterial inst; of noncompliance with those requirements.
This report is intended for the information of City management and agencies that pro federal financial assistance to the City. This restriction is not intended to limii
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-1 2- 8 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
CITY OF CARLSBAD
Findings and Recommendations
For the fiscal year ended June 30, 1993
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(1) Separate Allowances Should be Used for HUD Section 8 Utility Allowances
During our single audit testwork over the Section 8 Housing Assistance Paym Program, we noted four instances where the utility allowances were incorre calculated based upon the approved utility allowance schedule. The utility allow; schedule identifies a fixed amount for waterhash. If the tenant is paying on11 water, the caseworkers would assign a partial amount from the waterhash allowa
The method used to determine the partial amount is not documented or supported.
Recommendation
We recommend that the Authority develop and implement a utility allowance sche that identifies separate allowances for water and trash.
City Resmnse Regarding Corrective Actions Planned
The Housing Authority has developed and implemented a utility allowance sche
which identifies separate allowances for water and trash.
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(2) Reconciliation of HUD Section 8 Payments
During our single audit testwork, we found that the "HUD payment register", \I identifies Section 8 housing assistance payments, was not reconciled to the ge: ledger. The HUD payment register details the amount of payment the City ho department requested on behalf of each recipient and the general ledger details a payments made to landlords on behalf of recipients.
Recommendation
For proper accounting control, the HUD payment register and the general ledger SI be reconciled monthly. Any differences between the two documents shod
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City ResDonse Renardinn Corrective Actions Planned
A first quarter reconciliation has been completed; a reconciliation for the SE quarter will be done by the end of January 1994. Monthly reconciliations will be starting with the month of January 1994. 0
(3) Monitoring Subrecipients in the Communitv Development Block Grant (CI Promam
During our single audit review of controls over the CDBG program, we noted tha City did not perform any on-site visits for those subrecipients receiving over $2
during the fiscal year.
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0 CITY OF CARLSBAD
Findings and Recommendations
(Continued)
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(3) Monitoring Subrecipients in the Communitv Development Block Grant (C
Promam. (Continued)
Recommendation
We recommend that the City implement its on-site monitoring system for subrecipients receiving over $25,000.
City Response Regarding Corrective Actions Planned
The City will implement an on-site monitoring process for all CDBG subrecii regardless of funding amount. The City intends to conduct formal onsite visits at one time per program year. Informal visits will be made periodically throughou year to monitor subrecipients who require additionaVspecia1 assistance from City
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Status of Prior Audit Findings
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The prior year single audit findings have been adequately resolved.
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PARKING AUTHORITY
OF THE CITY OF CARLSBAD
Combined Financial Statements
Year Ended June 30, 1993
(With Independent Auditor's Report Thereon)
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combined Financial Statements
Year Ended June 30, 1993
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TABLE OF CONTENTS
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Independent Auditors' Report 1
Combined Balance Sheet - All Governmental Fund Types e and Account Group 2
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types 3
Notes to Combined Financial Statements 4
Supplementary Statements and Schedule: @
Combining Balance Sheet - Debt Service Funds 1c
Combining Statement of Revenues, Expenditures and Changes in
(I, Fund Balances - Debt Service Funds 11
Schedule of Insurance Coverage 1;
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CERTIFIED PUBLIC ACCOUNT/
1100 MAIN STREET, SI
IRVINE, CALIFORNIA e %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 47
CONRAD
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The Board of Directors
Parking Authority of the City of Carlsbad Carlsbad, California
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IndeDendent Auditors' ReDort
We have audited the accompanying component unit financial statements of the Pa Authority of the City of Carlsbad (the Authority), as of and for the year ended Jun 1993, as listed in the accompanying table of contents. These component unit fina statements are the responsibility of the Authority's management. Our responsibility express an opinion on these component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. T standards require that we plan and perform the audit to obtain reasonable assurance a whether the financial statements are free of material misstatement. An audit incl
statements. An audit also includes assessing the accounting principles used and signif' estimates made by management, as well as evaluating the overall financial state presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the component unit financial statements referred to above present fair1 all material respects, the financial position of the Parking Authority of the City of Car. as of June 30, 1993, and the results of its operations for the year then ended in confor with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion of the component unit final statements taken as a whole. The combining financial statements and schedule listed ir accompanying table of contents are presented for purposes of additional analysis and arc a required part of the component unit financial statements of the Parking Authority 01 City of Carlsbad. Such information has been subjected to the auditing procedures applii the audit of the component unit financial statements and, in our opinion, is fairly statt all material respects in relation to the component unit financial statements taken as a w'
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examining, on a test basis, evidence supporting the amounts and disclosures in the fina e
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September 3, 1993 0
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combined Balance Sheet All Governmental Fund Types and Account Group
June 30, 1993 0
Governmental Account
Fund Twes Group
I) General Debt Long-term Tot General Service Debt (Memoran
Assets and Other Debits
Cash and investments (note 2) $2,084 586,854 - 58 Net investment in direct financing
leases (note 3) - 677,747 - 67 1 1
*
Accrued interest receivable - 11,315 - Due from other funds (note 5) 916 14,558 -
Amount to be provided for retirement 4 Amount available in debt service funds - - 597,253 59
of general long-term debt - - 677.747 67'
Total assets and other debits $3.ooo 1.290.4741.275.oOo u
Liabilities and Fund Balances
Liabilities:
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Deferred revenue - 677,747 - 67
Due to other funds (note 5) $- 15,474 -
e Revenue bonds payable (note 4) - - 1.275.000 1,27
Total liabilities - 693.221 1.275.000 1.96
Fund ba 1 ance s : Reserved for debt service - 597,253 - 59' Unreserved - undesignated 3,000 - -
Total fund balances 3,000 597,253 - 601
Total liabilities and fund
balances $3.ooo l=222Lu1.275.ooo LA
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See accompanying notes to combined financial statements.
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 1993 e
Totals
Genera 1 Debt Service (Memorandum On a Revenues :
Lease payments $- 130,500 130,500 Interest income - 41.793 41.793
Total revenues - 172.293 172,293
0
Expenditures : Principal retirement - 175,000 175,000
105 , 600 105,600 Interest -
Administrative 2.799 - 2.799
2.799 280.600 283,399 e Total expenditures
Excess (deficiency) of revenues over (under) expenditures (2.799) 1108,307) (111.106)
Other financing sources (uses): e
Operating transfers in 2,799 18,074 20,873 Operating transfers out - (20.873 ) (20,873)
Total other financing sources (uses) 2.799 (2.799) - 0
Excess (deficiency) of revenues and other financing sources over (under) expenditures and other e financing uses - (1 11 , 106) (111,106)
Fund balances at beginning of year 3,000 708.359 711.359
Fund balances at end of year $3.ooo 597.253 600.253
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See accompanying notes to combined financial statements.
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a PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
Year Ended June 30, 1993
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f1) Organization and Summary of Simificant Accounting Policies
The Parking Authority of the City of Carlsbad (the Authority) was created pursua1 the Parking Law of 1949 and was authorized by the City Council on April 19, 1966
Carlsbad (the City). A five-member commission appointed by the City Council gov the Authority. The Authority is not subject to federal or state income taxes.
The Authority is an integral part of the reporting entity of the City. The accoun the Authority have been included within the scope of the general purpose final statements of the City because the City Council exercises oversight responsibility the operations of the Authority. Only the accounts of the Authority are incl
herein; therefore, these financial statements do not purport to represent the final position or results of operations of the City of Carlsbad.
The accounting policies of the Authority conform to generally accepted accour principles as applicable to governmental units. The following is a summary of the 1 significant policies:
(a) Basis of Presentation
a the purpose of providing and expanding public parking facilities for the Cit:
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The accounts of the Authority are organized on the basis of funds ani
The operations of each fund and account group are accounted for by providi separate set of self-balancing accounts that comprise its assets, liabilities, balance, revenues, and expenditures. The various funds and the account g are summarized by type in the financial statements. Fund types and account group used by the Authority are as follows:
GOVERNMENTAL FUND TYPES
Governmental funds are used to account for the Authority's expenc financial resources and related liabilities. The measurement focus is determination of changes in financial position. The following are
account group, each of which is considered to be a separate accounting er e
0
9 Authority's governmental fund types:
General Fund
The general fund is the general operating fund of the Authority. It is us1 account for all financial resources except those required to be accounted f another fund.
Debt Service Funds
Debt service funds are used to account for the accumulation of resource and payment of, general long-term debt principal, interest and related cost 0
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a PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
e
(1) Organization and Summary of Simificant Accounting Policies. (Continued)
la) Basis of Presentation. (Continued) e GENERAL LONG-TERM DEBT ACCOUNT GROUP
This account group is used to establish accounting control and accountabili
the Authority's general long-term debt. It is used to account for all long obligations of the Authority.
0 Ib) Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measurement f Accordingly, only current assets and current liabilities generally are includl
their balance sheets, and the reported fund balance provides an indicati available, spendable resources. Operating statements for governmental types report increases (revenues) and decreases (expenditures) in ava
spendable resources.
Governmental fund types use the modified accrual basis of accou Revenues are recognized when susceptible to accrual (i.e., both measurabl available). Available means collectible within the current period or soon ei
thereafter to be used to pay liabilities of the current period. Revenues th accrued include interest income.
Governmental fund expenditures are recognized when the liability is inci except for principal and interest on long-term debt, which is recognized
due.
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[c) Budgets
The Authority does not adopt an annual budget; thus, no budgetary compa are presented.
Jd) Investments e
Investments are stated at cost or amortized cost which approximates m value.
(e) Total Columns e
Total columns on the combined statements are captioned "Totals (Memora
Only),' to indicate that they are presented only to facilitate financial ana
Data in these columns do not present financial position, results of operatioi changes in fund balance in conformity with generally accepted accoL principles. Such data is not comparable to a consolidation. Inte eliminations have not been made in the aggregation of this data. e
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
e
(2) Cash and Investments
Cash and investments held by the Authority at June 30, 1993 consisted of the follov
Deposits $ 2,084 Investments 586,854
$588.938
The Authority's investment policy and state statutes authorize the Authority to ir in obligations of the U.S. Treasury, its agencies and instrumentalities, comme paper rated A-1 by Standard and Poor's Corporation or P-1 by Moody's Comme Paper, banker's acceptances with a maximum maturity of 270 days, repurchase reverse repurchase agreements, certificates of deposit with national and state lice
or chartered banks or federal or state savings and loan associations, money marke mutual funds whose portfolios consist of one or more of the foregoing investments Diego County investment pool and the State Treasurer's investment pool.
Under the California Government Code, a financial institution is required to sc
deposits made by state or local governmental units by pledging securities held ir form of an undivided collateral pool. The market value of the pledged securities i collateral pool must equal at least 110% of the total amount deposited by the p
agencies.
As of June 30, 1993, all of the Authority's deposits were classified as category 1. bank balance equals the carrying amount.
Classification of Investment by Credit Risk
As defined in Governmental Accounting Standards Board Statement No. 3, investr in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are held bj Authority or its agent in the Authority's name.
Category 2 - Uninsured and unregistered investments, for which the securitie! held by the counterparty's trust department or agent in the Autho name.
Category 3 - Uninsured and unregistered investments, for which the securitie! held by the counterparty or by its trust department or agent, but I the Authority's name.
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Con tinued)
0
(21 Cash and Investments. (Continued)
Cat egorv Carrying Markr 0 TyDe of Investment 1- 2 3 Amount Vali
U.S. Treasury notes and bills $ - 309,346 - 309,346 313J Government agency obligations - 151.406 : 151.406 150.(
$460.752: 460 , 752 463, (
Investment in mutual funds - 0
Pacific Horizons 126.102 126.
Total investments $586.854=
(3) Lease Agreements 0
Leases have been executed between the Authority and the City under which the agreed to make annual payments of $138,000 and $174,000 for the lease of a pa
facility and its subsequent expansion, respectively. The leases have been recordc the Authority as direct financing leases. 0
Lease payments are due quarterly and terminate on the date of retirement ol related revenue bonds. Under the terms of the lease agreements and the resolutions, Debt Service Funds in excess of the next interest and principal payr may be used as follows: First, to maintain a reserve of $68,000 and $156 respectively, for the 1969 and the 1981 Bonds. Next, to pay the General Fund fo expenses of 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 the excess monies i
1969 Bond Service Fund during the fiscal year ending June 30, 1993, no lease payr were required from the City under the parking facility lease. A lease paymei
$130,500 was required during the fiscal year ending June 30, 1993 from the City i the expansion lease to cover debt service payments during the year for the 1981 issue.
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(41 Revenue Bonds Payable
The following is a summary of changes in revenue bonds payable for the year ( 0 June30, 1993:
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a PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
a
14) Revenue Bonds Payable. (Continued)
Series 1969 Series 1981 Totals e Revenue bonds payab 1 e June 30, 1992 $450,000 1,000 , 000 1,450,00(
Bonds retired 100.000 75,000 175,00(
Revenue bonds payable,
June 30, 1993 $350.000 925.ooo 1.275.00(
Revenue bonds payable at June 30, 1993 were comprised of the following indivic issues:
1969 Parking Revenue Bonds:
1969 Carlsbad Parking Authority Revenue Bonds, remaining principal due in amoL ranging from $100,000 to $125,000 on October 1 of each year through 1995, inteI
payable on October 1 and April 1 at 6.4% per annum. The bonds are subject to cal whole or in part at the option of the Authority at prices ranging from 100.5% to 1C of the principal amount of the bonds.
198 1 Parkin? Revenue Bonds:
1981 Carlsbad Parking Authority Revenue Bonds, remaining principal due in amoi ranging from $75,000 to $150,000 on February 1 of each year through 2001, intei payable on August 1 and February 1 at 8.0% per annum. Bonds maturing on or aj February 1, 1991 are subject to call in whole or in part at the option of the Autho at prices ranging from 100.25°/~ to 102% of the principal amount of the bonds.
Debt service requirements to maturity for the revenue bonds payable are as follows:
Year Ending June 30. Series 1969 Series 1981 Totals
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1994 $1 19,200 174,000 293,20C 1995 137,000 166,000 303, OOC
150 , 000 150,00( 1997 1988 - 167 7 000 167,00( Thereafter - 466,000 466,00(
385,200 1,281 7 000 1,666,20(
129,000 158,000 287,00( - 1996
@
Less amounts representing interest 35.200 356.000 391,20( a
Total revenue bonds payable $ixLQQQ 925.ooo 1.275.00(
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9 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
(41 Revenue Bonds Pavable. (Continued)
e At June 30, 1993, the Authority was in compliance with all significant debt covenanl
Due To and From Other Funds
The following table shows amounts due from funds within the Authority to other fu within the Authority at June 30, 1993:
(5)
a
Due To: General Fund Bond Service Funds Series 1969 Series 1:
Due from: Bond Service Funds; - - - - Series 1969 $ 24 Series 1981 892
Reserve Funds:
Series 1981
Series 1969 - 2,060 - - 12,498 - - 3
Total m 2.060 u
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SUPPLEMENTARY STATEMENTS AND SCHEDULE
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a PARKING AUTHORITY OF THE CITY OF CARtSBAD
Combining Balance Sheet
Debt Service Funds
June 30, 1993
0
Bond Service Funds Reserve Funds
Assets Series 1969 Series 1981 Series 1969 Series 1981 Tof
68,009 163,749 S8f - 67;
1r
Investments $246,344 108,752
Net investment in direct financing lease 29,372 648,375 -
Accrued interest receivable 4,247 268 2,051 4,749 11
Due from other funds 2,060 12.498 - - --
Total assets $282.023769.893- 168.498- a
Liabilities and Fund Balances
Liabilities:
$ 24 892 2.060 12.498 15 - 677
Total liabilities 29.396 649.267 2.060 12.498 693
156.000 597,
Due to other funds
-- e Deferred revenue 29,372 648.375 -
Fund balances - reserved for debt service 252.627 120.626 68,000
7o.060 t68.4981.290, Total liabilities and fund balances $282.023 769.893 ?)
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combining Statement of Revenue, Expenditures and Changes in Fund Balance
Debt Service Funds
Year Ended June 30, 1993
e
Bond Service Funds Reserve Funds
Series 1969 Series 1981 Series 1969 Series 1981 T
0 Revenues :
Lease payments $ - 130,500 - - 13 Interest income 20.195 3.524 5,628 12.446 - 4'
Total revenues 20,195 134,024 5.628 12.446 17:
0 Expenditures:
Principal retirement 100,000 75,000 - - 17!
Interest 25,600 80,000 - - 101
Total expenditures 125.600 155.000 - - 28C
Excess (deficiency) of revenues over
--
-- e
(under) expenditures /105.405) J20.976) 5.628 12.446 m
Other financing sources (uses): - 1E Operating transfers in 5,628 12,446 - e Operating transfers out A) (1,989) 15,628) 112,446) I21
Total other financing sources (uses) 4.818 10.457 15.628) (12.446) 2
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses (100,587) (10,519) - - (111 e
Fund balances at beginning of year 353.214 131,145 68.000 156,000 708
Fund balances at end of year $252.627120.626 68.ooo 156.oooa
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Schedule of Insurance Coverage
Year Ended June 30, 1993
e
Insurance coverage maintained by the City of Carlsbad with the Authority liste additional insured at June 30, 1993 includes:
e Tvue of Coverage Amount of Coverage Term
All risk including valuable papers
and rental income $37,973,804 10/01/92 to 10/0 Equipment floater 517,410 10/01/92 to 10/0 e Honesty Blanket Bond 1,500,000 04/16/93 to 04/11
Effective January 1, 1986, the Authority has not been covered under a liability insux policy but has been included under the City of Carlsbad's self-insurance program.
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CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combined Financial Statements
Year Ended June 30, 1993
(With Independent Auditors’ Report Thereon)
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e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combined Financial Statements
Year Ended June 30, 1993
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TABLE OF C0"TS
e Pa
Independent Auditors' Report
Combined Balance Sheet - Governmental Fund Type
and Account Group
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds
e
Notes to Combined Financial Statements
Suppl ement ary St at ement s : e
Combining Balance Sheet - Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds e
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CERTIFIED PUBLIC ACCOUNT,
IRVINE, C All FORNI,
1100 MAIN STREET, 5
a %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 4
CONRAD
The Board of Directors City of Carlsbad Public Improvement Corporation Carlsbad, California e
Independent Auditors' Report
We have audited the accompanying component unit financial statements of the Cit Carlsbad Improvement Corporation (the Corporation) as of and for the year ended Jun 1993, as listed in the accompanying table of contents. These component unit fina statements are the responsibility of the Corporation's management. Our responsibility express an opinion on these component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 1 standards require that we plan and perform the audit to obtain reasonable assurance i whether the financial statements are free of material misstatement. An audit inc, examining, on a test basis, evidence supporting the amounts and disclosures in the final statements. An audit also includes assessing the accounting principles used and signifi estimates made by management, as well as evaluating the overall financial state] presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the component unit financial statements referred to above present fair1 all material respects, the financial position of the City of Carlsbad Public Improve] Corporation as of June 30, 1993, and the results of its operations for the year then endt conformity with generally accepted accounting principles,
Our audit was made for the purpose of forming an opinion on the component unit finar statements taken as a whole. The combining financial statements listed in the accompan table of contents are presented for purposes of additional analysis and are not a reqL part of the component unit financial statements of the City of Carlsbad Public Improver Corporation. Such information has been subjected to the auditing procedures applied ir audit of the component unit financial statements and, in our opinion, is fairly stated iI material respects in relation to the component unit financial statements taken as a whole
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&ad #Aseuq'tZ
0 September 8, 1993
- -
-1- - - MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combined Balance Sheet Governmental Fund Type and Account Group
June 30, 1993 e
Governmental Account Fund Tvue Group e
General Tot2 Debt Long- term (Memo1
Service Debt On 1
Assets e Cash and investments held by trustee (note 2) $ 876,096 - 876 Net investment in direct financing lease (note 3) 6,926,549 - 6,926
Interest receivable 29,980 - 29
Amount available in debt service funds - 903,451 903 Amount to be provided for retirement of
0 certificates of participation - 6.926.549 6.926
Total assets $7.832.625 7.830.000-
Liabilities and Fund Balance e Liabil it iesi
Deferred revenue $6,926,549 - 6,926 Certificates of participation payable (note 4) - '7,830,000 7.830
Total liabilities 6.926.549 7,830.000 14.756 e
Fund balances :
Reserved for arbitrage (note 5) 2,625 - 2 Reserved for debt service (note 5) 903,451 - 903
e Total fund balances 906.076 - 906
Total liabilities and fund balances $7.832.625 7.830.000=
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See accompanying notes to combined financial statements.
- 2- 3
e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combined Statement of Revenues, Expenditures
Debt Service Funds and Changes in Fund Balance -
Year Ended June 30, 1993 a
Revenues : e Lease payments $735,051
Interest on investments 74.977
Total revenues 810.028
e Expenditures:
Principal 260 ? 000 Interest 606 ? 448 Arbitrage rebate 23,200 Administrative 7.600
0 Total expenditures 897,248
Excess (deficiency) of revenues
(87 220) over (under) expenditures
Other financing sources (uses):
0 Operating transfers in 68,896 Operating transfers out Transfers to the City of Carlsbad (68 ? 896)
(76)
Total other financing sources (uses) (76)
e Excess (deficiency) of revenues and other financing sources over
(under) expenditures and other
financing uses (87,296)
Fund balances at beginning of year 993,372 e Fund balances at end of year $906.076
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See accompanying notes to combined financial statements.
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e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
Year Ended June 30, 1993
e
(1) Organization and Summary of Significant Accounting Policies
The City of Carlsbad Public Improvement Corporation (the Corporation) was orgai on June 1, 1988 under the Nonprofit Public Benefit Corporation law for the purpo;
financing and constructing certain improvements on the parcel of property kno~ Hosp Grove. The Corporation is not subject to federal or state income taxes.
The Corporation is an integral part of the reporting entity of the City of Carlz California (the City). The accounts of the Corporation have been included withii scope of the general purpose financial statements of the City because the City Co exercises oversight responsibility over the operations of the Corporation. Only accounts of the Corporation are included herein; therefore, these financial statem do not purport to represent the financial position or results of operations of the Cit
Carlsbad.
The accounting policies of the Corporation conform to generally accepted accour principles as applicable to governmental units. The following is a summary of the r significant policies:
(a) Basis of Presentation
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The accounts of the Corporation are organized on the basis of funds anc account group, each of which is considered to be a separate accounting en1 The operations of each fund and account group are accounted for by providii separate set of self-balancing accounts that comprise its assets, liabilities, q balance, revenues, and expenditures. The various funds and the account g- are summarized by type in the financial statements. The fund types and account group used by the Corporation are as follows:
GOVERNMENTAL FUND TYPE
Governmental funds are used to account for the Corporation's expend, financial resources and related liabilities. The measurement focus is L determination of changes in financial position. The following is Corporation's governmental fund type:
Debt Service Funds
Debt service funds are used to account for the accumulation of resources and payment of, general long-term debt principal, interest and related costs.
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GENERAL LONG-TERM DEBT ACCOUNT GROUP
This account group is used to establish accounting control and accountability the Corporation's general long-term debt. It is used to account for long-term obligations of the Corporation. 9
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a CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
(Continued)
Q
(1, Organization and Summarv of Significant Accounting Policies. (Continued)
(b) Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measurement fc Accordingly, only current assets and current liabilities are generally include their balance sheets, and the reported fund balance provides an indicatic available, spendable resources. Operating statements for governmental types report increases (revenues) and decreases (expenditures) in avail,
a
1) spendable resources.
Governmental fund types use the modified accrual basis of accoun Revenues are recognized when susceptible to accrual (i.e. , both measurable available). Available means collectible within the current period or soon en1 thereafter to be used to pay liabilities of the current period. Revenues thai
Governmental fund expenditures are recognized when the liability is incu except for principal and interest on long-term debt, which is recognized \ due.
0 accrued include interest income.
a (e) Budgets
The Corporation does not adopt an annual budget, therefore, no budge comparisons are presented.
(d) Investments
Investments are stated at cost or amortized cost which approximates ma
value.
0
(e) Total Columns
Total columns on the combined statements are captioned "Totals (Memoranc Only)" to indicate that they are presented only to facilitate financial anal! Data in these columns do not present financial position, results of operations changes in fund balances in conformity with generally accepted accoun principles. Such data is not comparable to a consolidation. Interi eliminations have not been made in the aggregation of this data.
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e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
(Continued)
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(2) Cash and Investments
Authority for Investments
The Trust Agreement by and among the Bank of America, as successor trustee, Corporation and the City of Carlshad, dated June 1, 1988, authorizes the truste
demand or time deposits, obligations of U.S. corporations having assets in exce!
$500,000,000 and carrying one of the three highest ratings by Moody's and Standarc Poor's Corporation, repurchase agreements, money market funds, commercial F rated A-1 by Standard and Poor's Corporation and P-1 by Moody's Commercial F with original maturities of not more than 180 days, bankers acceptances maturities of not more than 270 days, and tax-exempt obligations rate in one of three highest ratings by Moody's and Standard and Poor's Corporation.
Classification of Investment bv Credit Risk
As defined in Governmental Accounting Standards Board Statement No. 3, investm in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are held by
Category 2 - Uninsured and unregistered investments, for which the securities are
a
invest in Federal Treaaury Secunties, Federal Agenty Securities, interest-be:
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0 Corporation or its agent in the Corporation's name.
by the counterparty's trust department or agent in the Corporati name.
Category 3 - Uninsured and unregistered investments, for which the securities are 1
by the counterparty or by its trust department or agent, but not in Corporation's name.
As of June 30, 1993, the Corporation had $7,096 invested in mutual funds and $869. invested in a guaranteed investment contract which are not categorizable by cr risk.
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(3) Lease Anreements
Under the terms of a lease agreement dated June 1, 1988, the City has leased propc known as Hosp Grove to the Corporation and the Corporation has leased back to City the same property and all improvements constructed thereon. The Agreem requires the City to pay seminannual lease payments to the Corporation equal to debt service requirements of the Certificates of Participation issued by
Corporation on June 1, 1988 (the Certificates). The lease payments are due on e January 15 and July 15 until the Certificates have been paid in full. In addition, City must pay all taxes, assessments, insurance, maintenance and utilities on property and its improvements. The lease expires on August 1, 2008 or upon the c of retirement of the Certificates. The lease has been accounted for as a dir
financing lease.
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e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
(Continued)
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(4) Certificates of Particbation
The Corporation issued the Certificates on June 1, 1988 in the amount of $8,69C
pursuant to a Trust Agreement by and among the Corporation, the City and
Trustee. The Certificates represent an undivided interest in the lease payments I
by the City of Carlsbad to the Corporation. Interest is payable at rates ranging .
5.75% to 7.6% per annum. The Certificates mature on August 1 of eachyear thr
August 1 in each year on or after August 1, 2001, in amounts reflected in the a service requirements below. Certificates maturing on or after August 1, 1999 subject to call in whole or in part at the option of the Corporation at prices ran from 100°/~ to 102% of the principal amount of the Certificates. The Corporatic required to maintain a debt service reserve of $869,000. As of June 30, 1993, balance is $903,451.
Debt service requirements to maturity for the Certificates are as follows:
2008, Certificates maturing on August 1,2008 are subject to mandatory redemptic
e
Year ending June 30,
1994 $ 865,054 1995 866,873
1996 866,733 1997 859,795 1998 860,985 1999-2003 4,284,040 2004-2008 4,256,800
2009 851.600
13,711,880 a
Less amounts representing interest (5,881.880)
lizZUUN
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Changes in general long-term debt from the previous year result from payment!
principal and interest on the Certificates.
At June 30, 1993, the Corporation was in compliance with all significant c covenants. *
(5) Fund Balances
The reserve for arbitrage represents amounts which may be owed to the fed1 government under the Tax Reform Act of 1986.
The reserve for debt service represents resources legally restricted to the paymenl general long-term debt principal and interest maturing in future years.
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SUPPLEMENTARY STATEMENTS *
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e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combining Balance Sheet - Debt Service Funds
June 30, 1993 a
Lease Payment Reserve Total e Assets
Cash and investments held by trustee !$ 2,945 873,151 876, a Net investment in direct financing lease 6,926,549 - 6,926,s'
Interest receivable - 29.980 29.9
e Total assets 6.929.494 2l!xLu7.832.6
Liabilities and Fund Balances
Liabi 1 it ies :
6.926.51
6.926.51
e Deferred revenue $6.926.549 -
Total liabilities 6.926.549 -
Fund balances :
Reserves for arbitrage 2,625 - 2,6: Reserves for debt service 320 903.131 903.45
Total fund balances 2.945 903.131 906, Oi
Total liabilities and fund balances $6.929.494 903,131 7.832.6;
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e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combining Statement of Revenues, Expenditures
Debt Service Funds and Changes in Fund Balances -
e Year ended June 30, 1993
Lease Payment Reserve Tota e Revenues :
Lease payments $ 735,051 - 735, [ Interest on investments 2,113 72,864 74.'
Total revenues 737,164 72,864 810.(
i,
Expenditures:
Principal 260,000 - 260, ( Interest 606,448 - 606,~ Arbitrage rebate 23,200 - 23,: e Administrative 7.600 - 7.(
897.2 Total expenditures 897.248 -
Excess (deficiency) of revenues
over (under) expenditures (160.084) 72,864 187.2
Other financial sources (uses): e
Operating transfers in 68,896 - 68,8
2 Transfer to the City of Carlsbad (76 1 - Operating transfers out - (68,896) (68,8
3 Total other financing sources (uses) 68,820 (68.896) (
Excess (deficiency) of revenues and other financing sources over (under)
expenditures and other financing uses (91,264) 3,968 (87,2
Fund balances at beginning of year 94,210 899.162 993.3 3
Fund balances at end of year u 903.130906.0
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1200 Carlsbad Village Drive Carlsbad, CA 92008 e
Comprehensive Annual
Financial Report
FISCAL YEAR ENDED
JUNE 30,1993
Prepared by the Finance Department
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1993
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1 Letter of Transmittal 1
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TABLE OF CONTENTS
PAGE
INTRODUCTORY SECTION:
Table of Contents i
Location Map 22
List of City Officials 23
Organization Chart 24-25
FINANCIAL SECTION:
Independent Auditors' Report 27
General Purpose Financial Statements:
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Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Combined Statement of Revenues, Expenses and Changes
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31
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(Budgetary Basis) All Governmental Fund Types
in Retained Earnings - All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
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35 e
o Notes to General Purpose Financial Statements 37
Supplemental Data:
Governmental Funds:
General Fund:
0 Schedule of Revenues - Budget and Actual (Budgetary Basis) 72
73 0 Schedule of Expenditures - Budget and Actual (Budgetary Basis)
I
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1993
TABLE OF CONTENTS. (CONTINUED)
- PAGE
Special Revenue Funds:
0 Combining Balance Sheet 76
0 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 78
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis) 80 0
Debt Service Funds:
0 Combining Balance Sheet 88
0 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 89
0 Redevelopment Bonds Fund
Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis) 90
Capital Projects Funds:
0 Combining Balance Sheet 94
0 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 98
Proprietary Funds:
Enterprise Funds:
0 Combining Balance Sheet 104
e Combining Statement of Revenues, Expenses and Changes in Retained Earnings 105
0 Combining Statement of Cash Flows 106
Internal Service Funds:
0 Combining Balance Sheet 108
0 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 109
e Combined Statement of Cash Flows 110
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CITY OF CARLSBAD
Comprehensive Annual Financial Report
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I 0 Combining Statement of Changes in Assets and Liabilities 112
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Year Ended June 30,1993
TABLE OF CONTENTS. (CONTINUED)
pAGE
Fiduciary Funds:
Agency Funds:
Account Groups :
General Fixed Asset Account Group:
0 Schedule of General Fixed Assets by Function 114
0 115
0 Schedule of General Fixed Assets by Source 116
118
Schedule of Changes in General Fixed Assets by Function
Schedule of Annual Debt Service Requirements
STATISTICAL SECTION:
(Not covered by Independent Auditors' Report)
0 General Expenditures by Function, Last Ten Fiscal Years 124 1 0 General Revenues by Source, Last Ten Fiscal Years 126
0 Ratio of General Bonded Debt to Assessed Valuation and Net Bonded Debt Per Capita, Last Ten Fiscal Years 128
0 Computation of Legal Debt Margin 129 I Schedule of Direct and Overlapping Bonded Debt 130
Ratio of Annual Debt Service for General Bonded Debt to Total Governmental Expenditures, Last Ten Fiscal Years 131
Revenue Bond Coverage - Water Utility, Last Ten Fiscal Years 132 I 0 Demographic Statistics, Last Ten Fiscal Years 134
0 Schedule of Assessed Valuation, Last Ten Fiscal Years 136
e Construction and Business Activity, Last Ten Fiscal Years 138
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0 Property Tax Levies and Collections, Last Ten Fiscal Years 139
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CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1993
TABLE OF CONTENTS. tCONTINUED)
PAGE
1 40
0 Principal Employers, 1992-1993 141
0 Principal Taxpayers, 1992-1993 142
a Miscellaneous Statistical Information 143
0 Special Assessment Billings and Collections, College Boulevard
Assessment District, Last Seven Fiscal Years
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October 8, 1993
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD
Carlsbad, California
1992-93 COMPREHENSIVE ANNUAL FKNANCWL REPORT LETIER OF TRANSMI?TAL
We are pleased to present the 1992-93 Comprehensive Annual Financial Report of the Ciq
of Carlsbad to the City Council and the City Manager. This report includes financia
statements of the City, the Housing Authority of the City of Carlsbad, the Parking anc
Building Authorities of the City of Carlsbad, the Carlsbad Public Improvement Corporation,
the Carlsbad Redevelopment Agency and the Carlsbad Municipal Water Disnict, as well as
the opinion of our independent auditors, Conrad & Associares. The completion of this
independent audit is an important part of the total financial management program for the
City of Carlsbad.
The infoxmation found in this report is provided by management to the Council and the
public to assist those interested in understanding the fiscal condition of the City as of June
fairness of the presentation, including all disclosures, rests with the City. To the best of
our knowledge and belief, the enclosed data are accurate in all material respects and are
reported in a manner designed to present fairly the financial position and results of
operations of the various funds and account groups of the City of Carlsbad. All disclosures
necessary to enable the reader to gain an understanding of the government's financial
30, 1993. Responsibility for both the accuracy of the data, and the completeness and
I activities have been included.
Backmund
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 Ciry covers about 42 square miles and has a population of 67,172. Industries in the
area include a major regional shopping center, 22 auto dealers, 24 hotels offering 1,884
manufacturers, several business and light industry parks, and numerous land developers
building single and multi-family housing in a variety of community settings.
rooms for tourist lodpg, aerospace manufacturing, electronics, golf apparel and equipment
1
1200 Carlsbad Village Drive - Carlsbad CA Wn08-1989 - (619) 434-2867 - FAX (619) 434-1 98;
Senices Provided by the Citv
The City provides the full range of services normally associated with a municipality
including police, fire, parks and recreation, library, planning and zoning, building and
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 430 lorn
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 Carlsbac
residents receive assistance through the City's senior citizen programs. Also, the Ciq
provides major support for the Convention and Visitors Bureau operated in cooperatior
with the Carlsbad Chamber of Commerce. The City supports various service agencies suck
as the Women's Resource Center, YMCA and other agencies providing social services tc
Carlsbad residents. Finally, the City has reserved over $300,000 for support of the arts
art programs, and the purchase of works of art.
Sidcant - Events and Accomdkhents
During 1992-93 the City experienced many significant events or accomplishments that ma!
not be evident from a review of the financial statements. Some of the more importan
events are shown below.
Balanced Budget - One of the most signiicant accomplishments this year was agah
successfully balancing the General Fund budget. General Fund revenues were impactec
-downward when the State of California adopted its budget in September 1992
Approximately $1.2 million in property taxes were diverted from the City's General Fun(
to the State for school funding. In addition, City development revenues fell precipitous11
due to recessionary influences. Departments decreased expenditures by holding staff a
current levels, decreased maintenance and operating expenses, deferred projects, and cu
capital purchases. Through these efforts, the City was able to keep the General Fun(
expenditures in line with the revenues and $2.7 million under budget.
Economic Development - City Council established the economic development program i~
1992-93 to further its goal of achieving economic growth and stability for the City througl
proactive efforts to attract targeted industries to provide a strong economic base. Staf
began work on a strategic plan, with much of the effort in 1992-93 related to potentia
development of Carlsbad Ranch which includes a major hotel, golf courses, gemolog institute, and a theme park,
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General Plan Update - An update of all elements of the General Plan is proceeding w
town hall meetings and community forums to receive citizen input. The public revi
process continues on the first complete General Plan evaluation since the 1970's. Elei
existing General Plan elements were combined into eight, for example Open Space E
Environmental Impact Report (EIR) on the General Plan Update was produced and
currently circulating for public comment. City Council is expected to assess the upda
Conservation became one element; and all elements were reformatted for consistency. 1
plan h 1993-94.
Growth Management - The City's Growth Management Program was established by a vc
of the citizens in 1986. Under this program, development occurs only when infrastruch
improvements required to serve the development are financed and constructed as a part
the development. Standards have been established in eleven areas such as circulatic libraries, fire protection, parks, drainage, water, sewers, and open space. An outgrov
of this program is a long range capital improvement program which covers the current yc
through buildout of the City. The growth management program, in conjunction with I
current recession, has had a major effect on the building industry as shown in I I following chart:
I LAST EIGHT YEARS
DWELLING UNITS CONSTRUCTED
2500
< Growth Management implemmted in 1987.
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1500
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1986 1987 1988 1989 1990 1991 1992 1993 I FISCAL YEAR
The comprehensive Growth Management Financing Program is an important part of grov
management. This program links the infrastructure funding needs of the City and otl
agencies, such as schools, together with the needs of development to fund public purpc
projects. The coordinated effort depends on the rational use of Mello-Roos Commun
Facilities Districts, 1913/1915 Act Assessment Districts and fee programs to fina
facilities concurrent with demand without overburdening the land or home owner.
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Construction of Capital Projects - Because of the sluggish pace of development and
corresponding decline in developer fees, the City slowed its aggressive capital building
program, with an outlay of approximately $8 million in 1992-93. Declining revenues led
to project phasing and moving some planned projects to future years. During the last nine
years, Carlsbad expended more than $122 million for capital projects including major
streets, community parks, a senior center, a civic facility for police and fire, fire stations,
main library, and sea wall and bluff protection. This dedication to improving the
implements its long range capital improvement program.
Community Facilities District (0) No. 1 - Second year taxes for the City's first Mello-
Roos district were received in 1992-93. The citywide CFD taxes land scheduled for future
development. Through bond issues and developer payments, 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, with pass-
through of the CFD tax allowed only on property developed for commercialhdustrial
purposes.
Geographic Momtion System (GIs) - Development of a parcel-based Geographic
Information System (GIS) continued in 1992-93. GIS contains base layers of parcel,
efficient safety and public services, monitor growth, and allow financial and land use
projections. GIS was utilized in 1992-93 to provide land use, topography, and mapping
information for candidate preserve areas within the Habitat Management program.
Habitat Management Plan (HMP) - In 1990, the City led the state in early recognition of
our natural resources when City Council approved a program for the City's biological
resources. The Habitat Management Plan will provide policies and mechanisms for the
protection of wildlife habitat, especially of endangered, threatened, or sensitive species.
Completion of the biological inventory and analysis led to phase 111 in the HMP work
program. Candidate preserve areas with linking corridors were identified throughout the
City. Coordination with other agencies and with City development policy documents
continues. A draft plan should be presented to Council in late 1993 which is expected to
lead to application for a Habitat Conservation Plan under the federal Endangered Species
Act.
Homeless Shelter - Homeless local farm workers now have temporary shelter at the La
Posada de Guadalupe. The shelter is a cooperative project by Caring Residents of Carlsbad,
Catholic Charities, and the City of Carlsbad. In addition to the SO-bed dormitory, a
kitchen-dining hall, showers and laundry, and amnesty and immigration services are
provided.
infrastructure of the City is expected to continue into the foreseeable future as the City
roadways, and address information which will be used by City departments to provide more
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Financial Statement Format
This report is designed to provide both summarized and detailed information on tl
operation of each of the City's funds. The report is organized as follows:
Financial Section - This section contains the combined or summarizl
financial statements for all funds as well as the notes
the financial statements.
This section provides more detailed information on tl
activity within each fund including revenues, expent
tures, changes in fund balances, comparisons to budg
figures and other related data.
This section provides data on the City's fiscal activity ov
assessed value, and demographic information.
Supplemental Data -
Statistical Information -
the past ten years including revenues, expenditures, del
account in^ System and Budnetarv Control
I 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
separate function and legal restrictions on the use of resources. In the private sect(
a corporation may have many "subsidiaries" which make up the parent corporatic
In the public sector, a city government may have a variety of "funds" that provide t
basis for separately recording the financial data related to a specific activity. A fu
is an accounting entity with a complete set of self-balancing accounting records. Ea
fund has been established because of some restriction on the use of resources receiv
by that fund. This report includes the transactions of all entities over which the C:
Council of the City of Carlsbad has authority (as defined by the Governmen
Accounting Standards Board).
(2) The City's accounting system operates on a modified accrual basis for all governmen
and agency type funds. Governmental funds include the General, Special Reveni
Debt Service and Capital Projects Funds. A modified accrual system is one where
revenues are recorded when received in cash; b) revenues are accrued when they i
both measurable and collectable within the accounting period or soon enough af
the end of the period to pay liabilities of the period; and c) expenditures, other th
interest or long-term debt, are recorded when liabilities are incurred.
(3) The proprietary fund types (the Enterprise and Internal Service Funds) use the accn
method of accounting. Revenues and expenses are recorded when earned or incurrc
respectively.
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(4) Internal controls exist within the accounting system to ensure safety of assets from
misappropriation, unauthorized use or disposition, and to maintain the accuracy of
sound management practices based on the costhenefit of the controls imposed. The
cost of a control should not be excessive in relation to its benefit as viewed by Cio
management. The internal controls in existence within the City's system are sufficient
to ensure in all matend aspects both the safety of the Citfs assets and the accuracy
of the financial recordkeeping system.
(5) Budgetary control is maintained through monthly reports on all revenue and
expenditure accounts as well as quarterly reports summarizing the financial position
of the City. The City Council has the authority to control the budget through
adoption of a formal budget at the beginning of each year and by amending the
budget as necessary through the year. Expenditures should not exceed budgeted
figures. All appropriations expire at year end unless specifically carried into the new
fiscal year by Council action. TRe Carlsbad Municipal Code requires that the Financial
Management Director annually prepare a budget for the City Manager showing
financial recordkeeping. These internal controls must be established consistent with
estimated revenues and expenditures,
Total Citv ODera tiOnS
During 1992-93 the City staff of 483 full-time employees provided a complete range of City
services to the 67,172 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 three years, Carlsbad has made every effort to maintain
service levels through the deferral of projects and the management of vacant staff positions.
Although Carlsbad entered 1992-93 with a balanced budget, revenue estimates were
revised downward after the State adopted its budget in September. General Fund and
Redevelopment Agency were seriously impacted by the mandated transfer of property taxes
to the State and recessionary influences sigdicantly reduced development revenues.
Budget reductions were accomplished by continuing the hiring freeze which allowed the
filling of only the most necessary positions. Further reductions to maintenance, operating and capital equipment expenses were accomplished with minimal impacts on programs and
service levels. The close of 1992-93 showed the results, with an excess of revenues over
expenditures in all fund types except debt service.
Spending on all City programs totaled $78.4 million, an increase of $1.3 million from
1992-93. The increase is primarily due to construction costs on several major capital
projects. Revenues for 1992-93 totaled $82.6 million, an increase of about $800,000 or
1% more than last year's total of $81.8 million. The major factor for the revenue gain is
the increase in water rates to recover escalating costs to purchase water.
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Carlsbad is entering 1993-94 in a fiscally sound position due to City Council's rap
response to decreasing revenues as a result of the recession and the continuing low le\
of development activity in 1992-93. The general outlook for the next five years will '
challenging, matching a slower tax base growth with financial requirements to meet t:
demand for services.
The following report summarizes the revenues and expenditures (or expenses) for the Cj
of Carlsbad for the fiscal year ended June 30, 1993.
Revenue from All Fund Types (in thousands)
1992-93 over YO
1992-93 1991-92 (under) 1991-92 Change
General Fund $39,709 $39,925 $(216) (OS)%
Capital Projects Funds 9,174 9,483 (309) (3.3)
Internal Service Funds' 6.570 6.640 0 (1.1)
Special Revenue Funds 7,149 6,571 578 8.8
Debt Service Funds 2,083 2,461 (378) (15.4)
Enterprise Funds' 17,895 16,723 1,172 7.0
TOTAL REVENUES $82,580 $81,803 $777 0.9%
('I Includes operating and non-operating revenues
Expenditures (or Expenses) - All Fund Types
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(in thousands)
1992-93 over % 1 1992-93 1991 -92 lunder) 1991 -92 Change
General Fund $36,752 $39,230 $(2,478) (6.3) O/o
Special Revenue Funds 5,421 4,325 1,096 25.3
Debt Service Funds 4,65 7 3,975 682 17.2
Capital Projects Funds 8,275 6,455 1,820 28.2
Enterprise Funds' 17,355 17,064 291 1.7
Internal Service Funds' 5.978 6.083 (105) (1.71
TOTAL EXPENDITURES $78,438 $77,132 $ 1,306
('I Includes operating and non-operating expenses
1.7% -
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General Govemmentd Functions
The General Governmental function includes the operations of the General, Special
Revenue, Debt Service and Capital Projects funds. During 1992-93 revenue from all
Governmental funds totaled $58.1 million, a decrease of $300,000 from 1991-92;
expenditures totaled $55.1 million, up $1.1 million from last year. A brief look at these
numbers on a fund-by-fund basis is shown on the following pages.
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
police and fire services, libraries, parks, street maintenance, and administrative functions.
The following table summarizes General Fund revenues by major category for 1992-93 and
tax, licenses and permits, and charges for services, Categories of expenditures include
1991 -92:
General Fund Revenues
(in thousands)
1992-93 over YO
1992-93 1991-92 (under) 1991-92 Change
Taxes $26,026 $26,424 $ (398) (1.5)%
Licenses & Permits 1,725 1,729 (4) (0.2)
State Subventions 2,702 2,489 213 8.5
Charges for Services 2,835 4,563 (1,728) (37.8)
Fines & Forfehres 232 313 (81) (25.8) Interest Income 2,094 2,152 (58) (2.6) Other 4,095 2.255 1,840 81.5
TOTAL $39,709 $39,925 $ (216) (0.51%
In 1992-93 the City of Carlsbad again felt the effects of the recession in its General Fund
revenues which were down by $216,000 compared to 1991-92 revenues of $39.9 million.
General Fund revenues were originally budgeted for 1992-93 at $42.1 million. Estimated
revenues decreased to $39.7 million to incorporate State budget transfers and the
continued recession. Actual receipts came in at the revised budget estimate and totaled
$39.7 million. Major revenue categories are as follows:
a Property Tax Revenue - $12.6 million
Property taxes decreased $900,000 from 1991-92. When the State adopted
their budget for 1992-93, a reallocation of property taxes was mandated by the
State. The reallocation diverted $1.2 million, or 9% of 1991-92 property tax
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revenues, from the City to the State. Net assessed valuation rose from $5
billion in 1991-92 to $6.1 billion in 1992-93, a 2.6% increase. The increase
net assessed valuation was disappointing when compared to past year's doubl
digit increases. However, increased property values in combination with son
new construction and resales, augmented property tax revenues by approximat
ly $300,000, partially offsetting the property tax transfer to the State.
Sales Tax Revenue - $9.2 million
Sales taxes increased $444,000 over 1991-92, with the primary reason for tl
increase due to the opening of the new Price Club in the fall of 1992. The Ci
suffered declines in sales taxes generated by other market segments, particular
food markets, new auto sales and drug stores.
Interest Income - $2.1 million
Revenue generated by the City's investments declined $59,000 from 1991-9
The decrease is due to lower yields on investments which was partially offs
by slightly higher General Fund cash balances.
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Vehicle License Fee Revenue - $2.4 million
Revenue from vehicle license fees increased $300,000 this year. Vehicle licen
fees are paid to the State in lieu of a personal property tax on vehicles a
distributed to the City based on total population. Some of the increase
attributable to the 2.3% City population increase, and some is due to a reven
shift from the State between property taxes and vehicle license fees.
Transient Occupancy Tax Revenue - $3.1 million
Transient occupancy tax (hotel room tax) revenues remained constant in 199
93. TOT revenue reflects the general economy's lower available discretiona
income and reduced rates offered by many of the hotels and motels within t
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e Development Related Revenues - $1.2 million
Development related revenues are down $1.5 million from 1991-92. Much
the decrease is due to fewer engineering plan check and inspection fees and a]
includes several large fee refunds. Engineering fees occur early in t
preliminary development planning stages with builders anticipating fuh
construction. Development continues to move slowly through the process w
only 69 residential building permits issued in 1992-93.
e Other Revenue - $4.1 million
The $1.8 million increase in 1992-93 other revenue is primarily attributal
Public Employees Retirement System (PERS) reimbursement of surplus fur
and repayment of disaster costs from both federal and state agencies.
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Total General Fund expenditures are summarized in the following table:
General Fund Emenditures
(in thousands)
1991-93 over YO
Cateqory - 1992-93 1991 -92 (under) 1991 -92 Chanye
General Government $4,998 $5,069 $ (71) (1.4)%
Public Safety o 15,342 15,647 1305) 11.9) Cornunity Development 6,648 7,324 (676) (9.2) Culture & Recreation 6,238 6,961 (723) (10.3)
Maintenance & Utilities 3.526 4,229 (703) (16.6)
TOTAL $36.752 $39,230 $(2.478) (6.31%
The City of Carlsbad adapted to the recession and corresponding declining revenues by
decreasing expenditures. In order to insure that the General fund would end the year
balanced, several actions were taken. First, the City revised its budget downward to
compensate for diversion of revenues from the City to the State and to match expenses
with lowered revenue estimates. With this budget action, departments voluntarily gave up
$2.6 million in their budgets which included cutting 42 unfilled positions from the budget.
Other budget reductions were accomplished by replacing only a few employees as vacancies
occurred, reducing the use of consultants and closely monitoring other operating costs. In
addition, certain street projects are now budgeted and paid directly from the Gas Tax Fund.
million. This equates to a 6.3% or $2.5 million decrease from 1991-92 expenditures.
Other significant changes in expenditures were as follows:
Through this effort, the City was able to hold its General Fund expenditures down to $36.8
Public Safety
Spending on public safety programs totaled $15.3 million, down $305,000 or
2% from 1991-92. Police expenditures declined fhis year when the costs of the
DARE program to combat drug use by elementary school children were shifted
to the asset forfeiture fund. Additional savings were achieved by reallocating
Police resources thus avoiding replacement of several officers. In spite of lower
General Fund revenues, there has been no decrease in the level of service
provided by the City's public safety departments.
. Community Development
Community Development program spending decreased $676,000 or about 9%.
Because of declining development, Community Development was able to utilize
City staff instead of outside consultants for planning and engineering plan-
checking and studies related to the General Plan update. Additional savings
were achieved through employee attrition.
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. Culture and Recreation
Culture and Recreation spending dropped $723,000 or over 10% from 1991 -9
primarily due to cost-reduction measures in park operations and fee-support
recreation programs. Library expenditures declined 6% with no reduction
available services.
Maintenance and Utilities
Maintenance and Utilities decreased $703,000 or 16.6% from 1991-92.
1992-93, major street maintenance programs are now funded directly throu;
the Gas Tax Fund instead of transferring funds to the General Fund. T:
programs include street sweeping, curb, gutter and sidewalk cement repairs, a
street overlay sealants.
0 General Government
Spending in general government and administrative programs decreased l
$71,000, or 1.4% from 1991-92 because of Research staff reassignmen
employee vacancies, and fewer citywide training programs.
SDecial Revenue Funds
The City's Special Revenue Funds, which account for the collection and use of special
restricted revenues, received $7.1 million in total revenue in 1992-93. This is an increa
of $578,000 or almost 9% over last year. Revenues from taxes rose because Gas Tax fun
are now in the Special Revenue category instead of Capital Projects. Intergovemmeni
revenues declined in 1992-93 as the City received fewer police asset forfeiture funds frc
the sale of seized assets related to drug activity; however, the City received additior
federal funding of the low and moderate income housing programs. 1
Special Revenue Funds
Revenues
(in thousands)
1992-93 over YO
Cat e gory 1992-93 1991-92 (under) 1991-92 Change
Taxes $1,425 $ 317 $1,108 349.5%
Charges for Services 1,651 1,617 34 2.1
Intergovernmental 3,326 4,176 (850) (20.3)
Interest Income 541 341 200 58.6
Other 206 120 86 71.6
TOTAL $7,149 $6,571 $ 578 8.7%
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Expenditures from the Special Revenue Funds support a wide variety of programs and
projects. Some of the major uses of funds include:
* Public works programs such as street lighting, landscaping services for street trees and median maintenance.
Cultural programs, including grants from the California Library Services Act and
California Arts Council, and the Civic Arts program.
Special programs such as the Police Asset Forfeiture program, Bilingual Library
program, and Adult Literacy program.
Welfare programs such as the HUD-sponsored Carlsbad Housing Authority
rental assistance program and Senior Nutrition program.
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Special Revenue Funds
Expenditures
(in thousands)
1992-93 Over %
Category 1992-93 1991-92 lunderl 1991 -92 Change
General Government $ 475 $ 440 $ 35 8.0%
Welfare 2,711 2,287 424 18.5
Culture and Recreation 452 340 112 32.9
TOTAL $5,421 $4,325 $1.096 25.3%
Spending in Special Revenue Funds totaled $5.4 million in 1992-93, an increase of $1.1
million or about 25% above 1991-92. Increased expenditures in the public works category
reflect gas tax street expenditures now accounted for in Special Revenue Funds and higher
expenditures in the channel maintenance special benefit district, while increased HUD
housing allocations are shown under welfare.
Public Works 1,783 1,258 525 41-7
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 30,1993, the total debt payable from non-enterprise
sources, excluding obligations under capital leases, was $27.9 million, comprised of Parking
Authority and Hosp Grove Certificates of Participation, College Boulevard 1915 Act
Assessment District bonds and Redevelopment Tax Allocation bonds.
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Debt Service Funds
Revenues
(in thousands)
1992-93 over YO
Cateaorv 1992-93 1991-92 (under) 1991-92 Change
Taxes $1,745 $2,116 $(371) (17.5)%
(15.31% TOTAL $2,083 $2.461 !X3781
Debt Service revenues totaled $2.1 million, a decrease of $378,000 from 1991-92. Surpl
construction funds in the College Boulevard Assessment District allowed a decrease
Interest 338 345 0 (2.0)
required property owner payments.
Debt Service Funds
Expenditures
(in thousands)
1992-93 over YO I Category 1992-93 1991 -92 (under) 1991 -92 Change
Principal $1,645 $1,175 $470 40.0%
(1.6) Interest 2,755 2,800 (45) Other 257 0 25 7
TOTAL $4,65 7 $3,975 $682
Debt related expenditures rose in 1992-93 when principal payments were made w
payment to the State is also shown under debt service expenditures. No general obligati
bonds are outstanding at June 30, 1993. The 1967 Building Authority Revenue bon
issued to construct City Hall, were retired in 1992-93.
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17.1%
surplus College Boulevard construction funds, The mandated Redevelopment Ager
Capital Proiects Funds
Under the accounting definition used by the City, a capital project fund is one tl
accounts for the receipt and disbursement of monies that are restricted for the acquisid
or construction of capital facilities (other than those financed by enterprise funds). Capj
projects funds for the City of Carlsbad include those supported by the City's public facilit
fees, community facilities district (Mello-Roos) taxes, park in-lieu (park development) fe
drainage fees, traffic impact fees, bridge and thoroughfare district fees, county sales
funds, and general funds earmarked for capital purposes in the Capital Construction Fu
The capital projects supported by the City's Redevelopment Agency are also included in t
group.
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Capital Projects Funds
Revenues
(in thousands)
1992-93 Over YO
Catenory 1992-93 1991 -92 (under) 1991 -92 Change
Taxes $1,813 $ 3,228 $(1,415> (43.8) Oh
Intergovemmental 3,781 1,911 1,870 97.8
Charges for Services 1,239 1,580 (341 1 (21.5)
Other 448 776 (328) (42.2) TOTAL $9.174 $ 9,483 $(3091 (3.21%
Revenue in the capital projects funds totaled $9.2 million, down $309,000 from last year. Taxes decreased by $1.4 million as gas tax revenues are now shown under Special Revenues. Revenues from neighboring cities for construction of a shared road and
increased County sales taxes earmarked for City streets are reflected in higher intergovern-
mental revenues. The continued downturn in new building construction is apparent by the
decrease in charges for services and other revenues.
Interest 1,893 1,988 (95) (4.7)
Capital Projects Funds
Expenditures
(in thousands)
1992-93 over %
Category 1992-93 1991-92 (under) 1991-92 Change
General Government $1,083 $ 815 $ 268 32.8%
Capital Projects 7,192 5.640 1.552 27.5
$1,820 28,1°h TOTAL, $8,275
Spending on capital projects totaled $8.3 million. Much of the $1.8 million increase is due
to beginning construction on several major street projects. Fiscal year 1992-93 represents
the ninth year of the City's major construction effort which has provided more than $122
million in improvements. Projects planned for 1993-94 could carry this trend into a tenth
year with $26 million of new capital projects budgeted in the new year. The City Council
continues to set a high priority on the construction of quality infrastructure improvements.
Some of the key capital projects under construction or completed during this year include:
Palomar Airport Road East and El Camino Real - Construction began to this
vital circulation link in 1993. The project includes intersection improvements,
road widening, bicycle lanes, and waterline expansion. These improvements
- $6,455 -
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will upgrade a major circulation system through the industrial-commercl
comdor and is a joint effort of Carlsbad and the neighboring cities of Vista a San Marcos.
Freewav Interchanges - Expansion of the three Interstate 5 freeway interchaq
will provide improved circulation at critical connection points to City stree
The Palomar Airport Road/I-5 interchange, built in cooperation with the st;
transportation agency (CALTRANS), is scheduled for completion in Decembc
1993. Preliminary design work continues on the La Costa Avenue freew
interchanges, with construction scheduled for the Poinsettia Avenue interchan
in 1994.
El Camino Real Road Widening and Road Medians - Improvements to this m2
north/south City thoroughfare have improved Citywide traffic circulation.
order to limit traffic disruptions and achieve cost savings, Carlsbad Municii
Water District improvements and road widening were done concurrently.
Poinsettia Park - After development of the master plan for Poinsettia Park
phases, design work began in late 1992. The 30 acre park in the southwc
quadrant of Carlsbad has extensive environmental and permit processi
requirements. Final design is expected by calendar year-end with constructi
to begin mid-1994.
Streetscape Phase V and Tamarack Avenue - Construction on Carlsbad Villa
provide access to the Pacific Ocean and into the Village area. Street wide^
storm drain improvements, and undergounding of utilities will enhance saff
and further beaut@ City streets.
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Drive and Tamarack Avenue began in 1992-93, From the freeway, the roz
Entmrise ODerations
The City of Carlsbad manages water, sewer, solid waste, and the proposed golf course
Enterprise Fund operations. An enterprise fund is one where most or all of the co
involved are supported by user fees. Within these funds the City uses many of 1
accounting practices applicable to commercial business including the recording
depreciation on fixed assets and the allocation of overhead costs from support servic
User fees are set on an annual basis to cover both operating costs and debt service nee
The Carlsbad Municipal Water District (CMWD), established as a subsidiary district to 1
City in January 1990, is included as an enterprise fund of the City. CMWD and C
operations were merged in 1992-93, with all district positions joining City employmei
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Enterprise Funds
Total Operatinn and Non-Operating Revenues
(in thousands)
1992-93 over YO
Catezory 1992-93 1991 -92 (under) 1991 -92 Channe
CMWD $12,268 $11,422 $ 846 7.4%
Golf Course 87 61 26 42.6
Sewer 5,413 5,070 343 6.7
Solid Waste 127 170 0 J25.2) TOTAL $1 7,895 $16,723 $1,172 7,0%
Revenue in the enterprise funds totaled $17.9 million, up $1.2 million over 1991-92. Most
of the increase is due to a full year of higher sewer fees and an increase in the water rate
necessitated by the increased cost of purchased water.
Enterprise Funds
Total Operatinn and Nomoperatinn Expenses
(in thousands)
1992-93 over %
Catezory 1992-93 1991 -92 iunder) 1991 -92 Change
CMWD $12,304 $10,450 $1,854 17.7%
Golf Course 0 0 0
Sewer 4,897 6,513 (1,616) (24.8)
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Solid Waste 154 101 53 52.4
TOTAL $1 7,355 $1 7,064 $ 291 1.7%
Expenses in the Enterprise Funds totaled $17.4 million, up $291,000 over 1991-92. No
golf course expenses are shown since all golf course payments were directly related to the
construction of the proposed golf course and are included in construction in progress.
The write off of an unused sewer plant last year is reflected in the reduced sewer expenses.
The cost of purchased water, which increased 19% in 1992-93, and water inventory
adjustments raised CMWD expenses over last year. During this same period the number
of accounts provided with water and/or sewer service grew by only 1%, to 17,307.
In 1989, the City joined with three other agencies to sell $33.5 million of sewer revenue
bonds. These bond funds, along with finding from two additional agencies, have financed
the expansion of the Encina Wastewater Facility, which was substantially completed as of June, 1993. The expanded facility should provide sufficient wastewater treatment capacity
to the year 2005. Carlsbad’s portion of the outstanding bonds is $12.7 million.
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Lntmal Service Funds
Internal Service Funds are used to account for services provided by a City department
other City departments. As with an Enterprise Fund, the source of revenue is user fc 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. T
activity for this program is recorded in the Workers’ Compensation Self-Insurance Inten
Service Fund. Workers’ compensation claims for 1992-93 amounted to $639,000 compar
to $706,000 in 1991-92, a decrease of $66,000 or 9%. The decrease is attributable tc
one-the refund from the insurance administrator, partially offset by higher claims. T
estimated claims payable at year-end were $1 million, a $400,000 decrease from 1991-5
Total fund equity at June 30, 1993 is $1.3 million.
The General Liability Self-Insurance Fund was established near the end of 1980-81. Clai
expense for 1992-93 totaled $1.1 million, up $144,000 from the 1991-92 total
$990,000. The increased claims expense is directly related to higher reserves set aside 1 further settlements. The estimated claims payable at year-end were $871,000,
$227,000. The City is a member of the California Municipal Insurance Authority 15
management pool which covers most losses exceeding $500,000, with catastrophic 10s:
covered by additional excess liability insurance. Fund equity totaled $1.9 million at Ju f 30, 1993.
OTHER INTERNAL SERVICE FUNDS
Fleet Management operates a central vehicle maintenance program which services all C
vehicles and other small machinery. Replacement of vehicles, including fire equipment,
an important component of the program. Useful lives of vehicles have been extended or
recent years as a cost savings measure; however, large vehicle purchases are planned 1
1993-94. Although depreciation costs declined from prior year, total expenses were $1
million. Total fund equity at year-end was $5.2 million.
The City also operates a health insurance internal service fund for collecting premlur
paying the insurance carrier, and holding reserve funds. At June 30, 1993, total hea
insurance fund equity totaled $1.4 million.
The City‘s Data Processing internal service fund collects revenues and expenses related
the providing of data processing services to the City. At year-end, fund equity totaled $1
million.
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Anencv Funds
The City uses Agency Funds to account for assets held by the City for other individuals,
entities or governments. Typically these funds relate to contractors' cash performance
bonds, employee payroll deductions, or deferred compensation accounts.
The City held a total of $1&7 million in Agency Funds as of June 30, 1993, compared to
$18.9 million at the end of 1991-92. The increase of $200,000 is due to the deposit of an
additional $1.2 million into the City's deferred compensation plans, offset by a decrease of
approximately $1 million in miscellaneous deposits. The decrease in miscellaneous deposits
was mainly the result of the transfer of approximately $1.5 million in Public Employees
Retirement System (PERS) surplus finds to the General fund. The litigation surrounding
these funds was settled in 1992-93 allowing the City to record the funds as revenue this
fiscal year.
Cash Mananement
The City Treasurer is charged with the responsibility of safeguarding the City's assets,
receiving all payments due the City and investing all inactive funds. During this year the
City Treasurer earned about $7.5 million in interest on investments in all fund types from
instruments yielding up to 8.7%, compared to earnings of $7.6 million during 1991-92.
Treasurer had 100% of all available funds invested. The City's total portfolio at year-end
was $131.5 million. Below is a summary of cash and investments outstanding as of June
30, 1993:
Funds are invested in various types of instruments as shown below, At June 30,1993, the
Amount Invested
Interest Rates (in millions)
Cash 0.00 - 3.59 $ 1.0 Other Deposits 4.52 - 9.12 71.3
Federal Agency Notes 5.00 - 8.70 19.8
Treasury Issues 5.66 - 6.93 6.3
Corporate Notes 5.50 - 8.66 33.0
Miscellaneous Investments 0.00 - 4.00 0.1
$131.5
As required by State law, the City Council adopted a comprehensive investment policy
specifying the type and tern of City investments. This policy has allowed the City
Treasurer flexibility without endangering the safety, liquidity or yield of the total portfolio.
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Gann Limit - ADpoDnatiOIE Subject to Lknit
In 1979, Proposition 4, the "Gann" initiative, was passed. The purpose of this law is
limit government spending by putting a cap on the total proceeds of taxes that may '
appropriated each year. This limit is increased each year through a formula that takes in
consideration changes in the Consumer Price Index and state per-capita income. Wher
city reaches this limit excess tax revenue must be returned to the State or citizens throu
a process of refunds, rebates, or other means that may be defined at that time. The Ga
limit for the City of Carlsbad has increased steadily since 1979 and still provides the Cj
with a comfortable operating margin.
In 1991-92 state law allowed the recalculation of the City's limit with new inflation facto
Using population growth in San Diego County and growth in State per capita inco~
allowed the Gm Ldt for 1992-93 to $crease to $66 &on. Approprfadons of llprocee
of taxes" was only $35.6 million, thus allowing the City a healthy margin of $30.4 millic
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CITY OF CARLSBAD
PROPOSITION 4 SPENDING LIMIT
VS. APPROPRIATION OF PROCEEDS OF TAXES
MILLIONS OF DOLLARS
$70
$60
$50
$40
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1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
FlSCAL YEAR 1 APPROP OF TAXES a SPENDING UMIT
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Economic Outlook
The general outlook for Carlsbad over the next few years is hazy due to the lingering
recession and the threat of additional State actions which may further reduce the City's
revenue base. Current state and regional economic forecasts show a slow recovery with
continued depressed levels of construction spending over the next several years, especially
in the commerciaVindustrial area, A moderate and sustained national recovery, and a
pickup in California homebuilding, which had been counted upon to stabilize the California
economy, have failed to materialize.
As demonstrated during the past year, the recession has dramatically impacted the City's
ability to improve or increase programs provided PO its citizens despite the continuing
demand for such services. Actual spending in the General Fund was reduced by $5.3
million from originally budgeted amounts, and capital equipment outlay was essentially
eliminated. Our capital improvement program budgeted $32 million in expenditures for
this time, the 1992-93 capital program calls for a number of deferred or phased projects.
Despite the setbacks caused by the recession and the State's budget balancing strategies,
the long-term outlook for Carlsbad is still very optimistic.
The City's long range capital improvement program anticipates the construction of more
than $400 million in improvements between now and buildout. This program includes new
parks, libraries, fire stations, streets, water and sewer lines, and other facilities to maintain
the level of service offered to the Carlsbad resident. This aggressive construction program
will place a burden on the operating budget that must be managed through careful
scheduling to match demands with resources. Uncontrolled demand would easily out-pace
the City's ability to pay for services.
The City's Growth Management Program holds the key to the timing of many of the
developments that will support the City through fees and taxes. This program is designed
to insure that new development occurs in conjunction with careful planning of infrastruc-
1992-93, however only $8 million was spent. Since sufficient funds are not available at
ture and service needs.
The expansion of retail sales facilities, the addition of new auto dealerships, major discount
warehouse outlet, several small commercial centers, and continued plans for the
construction of a group of major shopping centers as well as the construction of a major
hotel in southern Carlsbad are expected to provide the much needed tax base to finance
the growing service needs. Further, future commercial/industrial development in the
Palomar Airport Industrial Park area will add to Carlsbad's economic health.
The City continues to support its tourist industry with financial support to the Chamber of
Commerce Convention and Visitors Bureau. Realizing that the Pacific Ocean beaches play
an important role, Council continues to appropriate funds to keep the state beach parking
free to all beach users and is considering constructing additional restroom facilities.
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The update of the City's entire General Plan began in 1992 with town hall meetings a
community forums held to receive input from all sectors of the public. The public revit
continues with a revised General Plan expected to come before Council in 1994.
addition, City staff completed a comprehensive fiscal analysis of the Carlsbad General P1
which forecasts the financial stability of the City. This program provides a tool to evalui
financial implications of current and future City policies and decisions. Staff will
updating this program in conjunction with the General Plan and presenting the results
Council in the future.
Certificate of Award for Outstandinz Financial ReDorting
The California Society of Municipal Finance Officers (CSMFO) presented a Certificate
Award for Outstanding Financial Reporting to the City of Carlsbad for its comprehensi
annual financial report for the fiscal year ended June 30,1992. The Certificate is valid i
one year only. The City has received the award from 1985. We believe our current rep(
continues to conform to the program requirements. I Acknowled~ents
This report has been a joint effort by many people from many different areas
responsibility. The dedicated efforts of Cheryl Allen, Assistant Finance Director, and all
the accounting staff, deserve full credit for the preparation and contents of this report. T
appreciate Karen Walz and Dean Votava of Conrad & Associates for the professional w
in which the audit of this financial report was conducted. It has been a pleasure to wc with the Conrad & Associates staff throughout this period. I Respectfully submitted, /si/ UA
LISA HILDABRAND
Finance Director
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FAUBROOK
RAMONA
lMPERlAL BEAm
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ClTY OF CARLSBAD
ELECTEDCITYOFFIW
Claude k Lewis, Mayor
Margaret Stanton, Mayor Pro Tem Ramona Finnila, Council Member
Ann J. Kulchin, Cound Member 1 Julianne Nygaard, Council Member
Aletha L. Rautenkranz, City Clerk I James M. Stanton, City Treasurer
ADMINISIXATION AND DEPARTMENT HEADS
Raymond R Patchett, City Manager
Frank Mannen, Assistant City Manager
James F. Elliott, Financial Management Director Martin Orenyak, Community Development Director
Ron Ball, City Attorney
Ralph Anderson, Utilities & Maintenance Director
David Bradstreet, Parks and Recreation Director
Ruth Fletcher, Purchasing Officer
Michael Holzmiller, Planning Director
Lloyd Hubbs, City Engineer
Ann Jensen, Human Resources Director Clifford Lange, Library Director
Dennis Van Der Maaten, Fire Chief
Robert Vales, Police Chief
CHAIRPERSONS, COMMISSIONS AND BOARDS
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Sue Ladouceur Arts Commission
Sally Vigil Beach Erosion Committee
Stuart Turgel
Julie Baker Child Care Commission
Tom Erwin Peggy Savaq Design Review Board
Edward Scarpelli Housing Commission
Claude A. Lewis
Richard Martin Library Board Richard Goodman Parking Authority
David Castner
Camille Mitkevich Personnel Board
Tom Erwin Planning Commission
George Heard Senior Citizen Commission
Emmett J. Woodward, Jr. Dennis Brandmeyer Sister City Committee
John Fuller Traffic Safety Commission
Richard Allen
John Henley Water Commission
Cable Television Foundation
Citizens Committee to Study Growth
Marjorie Howard-Jones Historic Preservation Commission
Housing and Redevelopment Codsion
Parks and Recreation Commission
Serra Cooperative Library System Advisory Boa
Underground Utility Advisory Committee
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.............................
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CERTIFIED PUBLIC ACCOUN’
1100 MAIN STREET,
IRVINE. CALIFORN %SSOCIATES (71 4)
CONRAD
A PARTNERSHIP lNCLUDlNG PROFESSIONAL CORPORATIONS
The Honorable Members of City Council City of Carlsbad, California
I INDEPENDENT AUDITORS’ REPORT
We have audited the accompanying general purpose financial statements of the C Carlsbad, California as of and for the year ended June 30, 1993, as listed in the ta contents. These general purpose financial statements are the responsibility c management of the City of Carlsbad, California. Our responsibility is to express an c on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. standards require that we plan and perform the audit to obtain reasonable assurance whether the general purpose financial statements are free of material misstatemen audit includes examining, on a test basis, evidence supporting the amounts and disclosu the general purpose financial statements. An audit also includes assessing the acco principles used and significant estimates made by management, as well as evaluatir overall financial statement presentation. We believe that our audit provides a reasc basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fai all material respects, the financial position of the City of Carlsbad, California as of Ju 1993, and the results of its operations and the cash flows of its proprietary fund types f year then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose fin statements taken as a whole. The combining, individual funds, and individual account financial statements and schedules listed in the table of contents are presented for pui of additional analysis and are not a required part of the general purpose financial state of the City of Carlsbad, California. Such information has been subjected to the au procedures applied in the audit of the general purpose financial statements and, i opinion, is fairly stated in all material respects in relation to the general purpose fin statements taken as a whole. The scope of our audit did not include the suppler statistical schedules listed in the table of contents and we do not express an opinion on
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[d) L*,M7w ,, +P LkJdJ
October 8, 1993
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MEMBERS OF AICPA AND CALIFORNIA SOCiEP OF CERTIFIED PUBLIC ACCO’L!”!T*”!TC
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
CITY OF WBAD
Combined Balance Sheet
All Fund Types and Account Groups
June 30, 1993
Governmental Fund TvDes
General Revenue Service Proiects Special Debt Capital
Assets and Other Debits
Assets: Cash and investments (note 3) $11,812,855 9,679 , 325 4,481,481 37,523,712 Deferred compensation investments (note 16) - - - -
Receivables: Loans - - - 114,864 Taxes 657 , 373 28,640 52,137 6,780 40,000 Accounts, net 102,262 27,527 -
Special assessments - - 7,290,000 - Other 435,040 - - -
Accrued interest 409,400 146,866 68,036 484,531
61,450 - 70,908 Due fron other funds (note 4) Due from other governments 6,107 Advances to other funds (note 5) 10,804,846 - - 1,700,000 Inventory 27 , 672 - - - Prepaid expenditures - 194,372 - -
Restricted assets: Cash and investments (note 3) - - - - Accrued interest - - e a
Property, plant and equipment, net (notes 6 and 7) - - - -
Amount available in debt service funds - - - - Amount to be provided for retirement of general long-term debt - - - -
* * II 242,168
Other debits:
Total assets and other debits $24.497.72310.253.04411.891.654 39.825.931
Liabilities. Esuitv and Other Credits
Liabilities: 1,316,448 Accounts payable $ 984,645 195,943 -
Accrued wages payable 1,960,233 70,723 - 15,158 Accrued interest payable e - - -
Due to other funds (note 4) - 228,513 - 13,655 Advances from other funds (note 5) - - - 12,504,846 Due to other governments - 830 - - Estimated claims payable - - - -
Assessments payable - 0 - - Current portion of long-term debt (note 10) P - - - Deposits payable 150 Deferred compensation payable (note 16) - - - -
assets - accrued interest payable - - - -
Bonds payable (note 10) - - - -
commitment (note 10) - - - -
(notes 8 and 10) - - - -
Certificates of participation (note 10) - - - - Installment purchase agreement (note 10) e - - -
- - 841,067
Current liabilities payable from restricted
Deferred revenue 3,718,739 - 7,290,000 98,716
Special assessment debt with governmental
Obligations under capital leases
Total liabilities 6.663,767 496.009 7.290.000 14.789.890
Equity and Other Credits: Investment in general fixed assets - - - - Contributed capital (note 12) - - - - Fund balance:
Reserved (note 11) 7,727,395 3,628,889 4,599,029 8,179,392 Unreserved (note 11) 10,106,561 6,128,146 2,625 16,856,649
Reserved (note 11) - - - -
Unreserved (note 11) - - - -
Retained earnings:
Total equity and other credits 17,833.956 9,757.035 4,601,654 25,036,041
Total liabilities, equity and other credits $24.497.723 10.253.0 44 11.891.65 439.825.931
See accompanying notes to generai purpose iinanciai statements. 28
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Provrietarv Fund Tvves Fiduciarv Fund TvDe Account Grouvs 1 Entervrise Service Anencv Assets Debt lMemor
General General Internal Fixed Long-Term
33,575,974 10,385,970 12,779,240 - - 120,
5, - - 5,905,967 - -
11,640 - - - - - - - - -
- 2, 7,
1.
- 12.
2,574,530 6,601 - - - - - - - - - - - - 530,621 161,393 58,964 - - 204,657 - - - -
229,596 97,061 - - -
5,401,732 - - - - 6,938 - - - -
- - - - - - - - -
- - - - -
5,
100,353,463 2,758,206 - 63,017,773 - 166, - - - 4,301,654 4,
- - - - 24.442.634 24.
-
142.889. w 13.409.231 18.744.171 63.017.773 28.744.288 a3.4
4, 2.
12 I
2, 4, 1, 9, 5,
- 13, - - - 12,460,000 12 I - - 7,580,000 7,
10,319,479 - - - 7,830,000 18 12 12,029,445 - - - -
27.955.019 2,555,596 18.744.171 - 28.744.288 - 107
- - - 63,017,773 - 63 - 86 - - 24 - - 33
3 - 35
114.934.132 10.853.635 - 63,017,773 - 246
142.889. 151 13.409.231 18.744.171 63.017.773 28,744.288 2s.
1,255,701 297,494 2,047 - -
310,850 45,678 - - - - - 378,620 - - 204,657 - - - -
- 2,212,424 - - - - - 4,219,611 - - 1,004,630 - - - - 272,659 - 8,237,926 - - - - 5,905,967 -
486,820 - - - - 2,070,778 - - -
- - - - - - - - - -
-
I -
- - - - - - 874,288
~
79,628,166 6,471,940 - -
- - - - - -
3,917,220 - - - -
31,388,746 4,381,695 - - -
29
30
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
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I Year Ended June 30, 1993
Special Debt Capital Tots General Revenue Service Proiects (Memorandl
Taxes $26,025,646 1,424,846 1,744,551 1,812,440 31,007, Licenses and permits 1,724,773 - - - 1,724, Intergovernmental 181,367 3,326.055 - 3,781,254 7,107, State subventions 2,702,102 - - - 2,702, Charges for services 2,835,535 1,651,524 - 1,238,538 5,725, Fines and forfeits 231,877 - - - 231, Interest income 2,093,659 540,808 338,463 1,893,431 4,866, Interdepartmental services 2,100,985 - - - 2,100, Contributions from property owners - - - 380,389 380, Miscellaneous 1.813.384 206,226 - 67,612 2.268,
Total revenues 39.709.328 7.149.459 2.083.014 9.173.664 58.115,
Revenues :
Expenditures: Current: General government 4,997.887 474.434 - 1,083,032 6,555, 15,341, Community development 6,648,158 - - - 6,648, Public works - 1,783,124 - - 1,783, We1 f are - 2,711,467 - - 2,711, Culture and recreation 6,237,793 448,317 - - 6,686, Maintenance and utilities 3,526,214 - - - 3,526, Capital outlay - 3,425 - 7 , 192,002 7,195, Debt service: Principal retirement - - 1,645,000 - 1,645, Interest and fiscal charges - - 2,754,613 - 2,754, State mandated payment - - 257.278 - 257 L
Total expenditures 36,751,698 5.420.767 4,656.891 8.275.034 55,104 %
Excess (deficiency) of revenues over (under) expenditures 2.957.630 1.728.692 (2.573.877) 898,630 3,011.
Public safety 15,341,646 - - -
Other financing sources (uses): Operating transfers in 76 3,170 2,346,126 1,626,036 3,975, Operating transfers out ( 1,040,551) - (76) (2,934,781) (3,975,
Administrative lee received from bond refunding e 36.616 - - 36,
Total other financing
Excess (deficiency) of
Grant reDayment - (507.451) - - ( 507.
sources (uses) (1.040.475) 1467.665) 2,346.050 (1.308.745) (470,
revenues and other financing sources over (under) expenditures and
other financing uses 1,917,155 1,261,027 (227,827) (410,115) 2,540,
Fund balances at beginning of year, as restated (note 22) 16,809,073 8,549,508 4,904,027 26,642,420 56,905,
Residual equity transfers in 146,928 - - 10,979 157.'
Residual equity transfers out 11.039.200) 153.500) 174.546) (1.207.243) (2,374.1
Fund balances at end of year $17.833.956 9.757.035 4.601.654 254036.0 41 57.228.1
See accompanying notes to general purpose financial statements.
31
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) - All Governmental Fund Types
Year Ended June 30, 1993
General Fund Actual on Variance- Budgetary Favorab 1 e Budget Basis 1Unfavorablel Revenues : Taxes $27,025,000 26 , 025 , 646 (999,454) Licenses and permits 2 , 150,000 1 , 724,773 (425 , 227) "Intergovernmental e 181 , 367 181,367 State subventions 2,600 , 000 2 , 702,102 102,102 Charges for services 3 s 619,300 2 , 835 , 535 (783,765) Fines and forfeits 375,000 231,877 ( 143,123) Interest income 1,700,000 2,093,659 393,659 Interdepartmental services 1,900,000 2,100,985 200,985 Miscellaneous 306,435 1.813.384 1,506.949
Total revenues 39.675.735 39,709,328 33.593
Expenditures: Current:
General government 6,748,066 5,169,167 1,578,899 Public safety 15 , 621,261 15,416 , 781 204,480 Community development 7,344,024 6,881.126 462,898 Public works - - - Welfare - - - Culture and recreation 6,398,227 6,260,123 138,104 Maintenance and utilities 3,934,721 3,655,064 279,657 Capital outlay - - -
Principal retirement - - - Interest and fiscal charges - - - State mandated payment - - -
Debt service:
Total expenditures 40.046.299 37,382,261 2,664,038
Excess (deficiency) of revenues over (under) expenditures (370,564) 2,327.067 2,697.631
Other financing sources (uses): Operating transfers in 76 76 - Operating transfers out ( 1,040,551) ( 1,040,551) - Grant repayment - - -
Administrative fee received
from bond refunding - - -
soures (uses) (1.040.475) (1.040.475) - Total other financing
Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (1,411.039) 1,286,592 2,697,631
Fund balances at beginning of year,
Residual equity transfers in - 146 , 928 146,928
as restated (note 22) 16,809,073 16,809,073 -
~1,039,200) j 1,039,200) Residual equity transfers out -
Fund balances at end of year $15.398.034 17.203.39s 1.805.359
See accompanying notes to general purpose financial statements.
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Special Revenue Funds Debt Service Funds Totals (Memorandum Actual on Variance- Actual on Variance- Actual on V Budgetary Favorable Budgetary Favorable Wldgetary F Budpet Basis fUnfavorablel Budnet Basis (Unfavorable) Budnet Basis /un
1,275,000 1,424,846 149,846 1,600,000 1,322,061 (277,939) 29,900,000 28,772,553 (1 - - - - - - 2,150,OOO 1,724,773 3,087,821 3,326,055 238,234 - - - 3,087,821 3,507,422 - - - - - - 2,600,000 2,702,102 5,294,286 4,487,059 - - - - - - 375,000 231,877 1 , 674,986 1 , 651,524 (23,462)
178,700 540,808 362,108 60,000 121,515 61,515 1,938,700 2,755,982 - - - - - - 1,900,000 2,100,985 76,000 206,226 130.226 - - - 382.435 2,019.610 1
6.292.507 7.149.459 856.952 1,660.000 1,443.576 1216.424) 47.628.242 48.302.363 -
- - -
675,047 648,849 26,198 - - - 7,423,113 5,818,016 1 - - - - - - 15,621,261 15,416,781 - - - - - - 7,344,024 6,881,126
3,460,722 3,020,449 440,273 - - - 3,460,722 3 , 020,449 2,792,861 2,711,467 81,394 - - - 2,792,861 2,711,467 781,062 635,408 145,654 - - - 7,179,289 6,895,531 3,934,721 3,655,064 3,425 3,425 - - - - 3,425 3,425 - - - 290,000 290,000 - 290,000 290,000 - - - 847,939 1,329 , 644 (481 , 705) 847,939 1,329,644 - - - 251,218 257,218 - 251,218 257,218 -
7.713.117 7,019.598 693.519 1.395.217 1.876.922 J481.705) 49,154,633 46.278.781 2
- - - - - -
(1,420.610) 129.861 1.550.471 264.783 (433.346) 1698.129) 11.526.391) 2.023.582 -2
3,170 3 , 170 - 464,061 464,061 - 467 , 307 367,307 - - - - - - ( 1,040,551) ( 1,040,551)
36.616 36,616 - - - - 36.616 36,616 -
(507,451) (507,451) - - - - (507,451) (507,451)
(467.665) (467.665) - 464,061 464.061 - 11.044.079) 11.044,079) -
I (1,888,275) (337,804) 1,550,471 728,844 30,715 (698,129) (2,570,470) 979,503
8,549,508 8,549,508 - 1,757,057 1,757,057 - 27,115,638 27,115,638
- - - - - - - 146,928 - (53,500) (53.500) - - - - (1.092.700) L
5.661. 233 &158:204 1.496.971 2.485.901 1.787.772 (698.129) 24.545.168 27.1 49.369 - -
33
CITY OF CARLSBAD
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings - All Proprietary Fund Types
Year Ended June 30, 1993
Internal Totals Entermise Service _(Memorandum On15 Operating revenues :
Water sales $ 9,844,421 s 9 9 844 9 421 Sewer service charges 4,382,889 - 4,382,889 Other charges for services 482,895 5,551,478 6,034,373 Contributions from other
Miscellaneous 191,672 474,589 666.261
Total operating revenues 14.977.671 6,026,067 21,003,738
government agencies 75,794 - 75,794
Operating expenses:
Plant operations 1 * 608,483 - 1,608,483 h r chas ed wa t e r 6,137,022 - 6,137,022 Depreciation and amortization 2,254,800 533,396 2,788,196 Fuel and supplies - 457,019 457,019 Claims expense - 3,598,129 3,598,129 General and administrative 5,597.156 1.372.346 6.969.502
Total operating expenses 15.597.461 5,960.890 21.558.351
Operating income (loss) (619.790) 65,177 (554.613)
Nonoperating revenues (expenses): Interest income 2,086,155 543,692 2,629,847 Interest expense and fees (1,706,887) - (1,706,887) Gain (loss) on sale of property 8,566 (17,346) (8,780) Property taxes 758,231 - 758,231 Miscellaneous income 58,524 - 58,524 Amortization of issuance costs (44.243) - (44.243)
Total nonoperating revenues 1,160,346 526.346 1.686.692
Net income 540,556 591,523 1,132,079
Retained earnings at beginning of year 34,821,409 3,790,172 38,611,581
Residual equity transfers out (55.999) - (55,999)
39.687.661 Retained earnings at end of year gK305.966 4 z 381 : 695
See accompanying notes to general purpose financial statements.
34
CITY OF CARLSBAD
Combined Statement of Cash Flows-
All Proprietary Fund Types
Year Ended June 30, 1993
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Internal Totals
Enterprise Service /Memorandum 0
Cash flows from operating activities:
Adjustments to reconcile operating
Operating income (loss) $ (619,790) 65,177 (554,613
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 2,254 , 800 533 , 396 2,788,196
Decrease (increase) in receivables (335,066) (155) ( 335,221
Decrease (increase) in inventory 213,913 (15,430) 198,483 Increase (decrease) in dews i t s payable 33,664 - 33,664
Increase (decrease) in accounts payable 334,472 235,930 570 , 402
Increase (decrease) in accrued wages
payable 26,245 ( 799 1 25,446
Increase (decrease) in estimated claims
(26.278) (26.278 pay ab 1 e -
Net cash provided by operating
activities 1.908.238 791,841 2.7OO.079
Cash flows from noncapital financing
activities:
Transfer to other funds (55.999) - (55.999
Cash flows from capital and related
financing activities:
Purchases of property, plant and equipment (2,966,954) (297,258) (3,264,212
Principal payment on bonds (685,000) - ( 685,000
Property taxes received 758,231 - 758,231
Capital contributions received 1,446.062 530,000 1,976,062
Interest and other fees paid on bonds (2 , 111,915) - (2,111,915
Net cash provided by (used in)
capital and related financing
activities (3.559.576) 232,742 13,326,834)
Cash flows from investing activities:
1,182,436 Investment in restricted assets 1,182 , 436 -
Interest on investments 2,153, $22 527,506 2,681,028
Net cash provided by investing
activities 3.335.958 527.506 3,863,464
Net increase in cash and cash equivalents 1,628,621 1,552,089 3,180,710
Cash and cash equivalents at beginning
of year 31,947.353 8,833,881 40,781,234 I Cash and cash equivalents at end of year -10.385.970 43.961.944
Supplemental schedule of noncash
investing and financing activities s 2.753- 202 370.5 48 3.123.75Q
See accompanying notes to general purpose financial statements.
36
II CITY OF CARLSBAD
Notes to General Purpose Financial Statements
Year Ended June 30,1993 1
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(1) Summarv of Simificant Accounting Policies
The City of Carlsbad, California (Carlsbad) was incorporated on July 16, 1 Carlsbad operates under a Council-Manager form of government and provides following services: general government, public safety, community developm public works, culture, and recreation. Carlsbad is not subject to federal or st income taxes.
The accounting policies of Carlsbad and its component units conform to gener accepted accounting principles as applicable to governmental units. The followin a summary of the more significant policies:
(a) DescriDtion and Scoue of the Reporting Entity
The Comprehensive Annual Financial Report includes all entities for w1 Carlsbad exercises oversight responsibility as defined by the National Cou on Governmental Accounting (NCGA) Statement No. 3 "Defining and Repor
Entity." This responsibility includes, but is not limited to, the authorit! govern, manage, approve budgets, and assume fiscal accountability.
The financial statements of the reporting entity (the City) include the finar activities of Carlsbad, the Housing Authority of the City of Carlsbad, Parking and Building Authorities of the City of Carlsbad, the City of Carls Public Improvement Corporation, the Carlsbad Redevelopment Agency and Carlsbad Municipal Water District (the District). Their financial operat are closely related and the City Council has a continuing overs responsibility over these entities. The oversight responsibility is determine( the basis of budget adoption, taxing authority, funding and appointment of governing board.
The City also has an interest in a joint sewage treatment facility known as Encina Water Pollution Control Facility and in a financing authority know1 the Encina Financing Joint Powers Authority. Since the City does not h significant influence over the management or the operation of these entit they have not been included as component units in the City's finan statements.
(b) Basis of Presentation
The accounts of the City are organized on the basis of funds or account groi each of which is considered to be a separate accounting entity. The operati of each fund or account group are accounted for by providing a separate sei self-balancing accounts that comprise its assets, liabilities, f balancehetained earnings, revenues, and expenditures or expenses. ' various funds and account groups are summarized by type in the financ
I 37
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/1) Summary of Simificant Accounting Policies. (Continued)
statements. Fund types and account groups used by the City are as follows:
GOVERNMENTAL FUND TYPES:
Governmental funds are used to account for the City's expendable financial resources and related liabilities (except those accounted for in proprietary and similar trust funds). The measurement focus is based upon determination of changes in financial position. The following are the City's governmental fund types:
General Fund
The general fund is the general operating fund of the City. It is used to
for in another fund.
SDecial Revenue Funds
Special revenue funds are used to account for revenues derived from specific sources (other than major capital projects) that are restricted by law or administrative regulation to expenditures for specific purposes.
Debt Sewice Funds
Debt service funds are used to account for the accumulation of resources for, and payment of, general long-term debt principal, interest and
related costs.
CaDital Projects Funds
Capital projects funds are used to account for financial resources to be
than those financed by proprietary funds.
account for all financial resources except those required to be accounted
used for the acquisition or construction of major capital facilities other
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 based upon determination of net income and capital maintenance. The following are the
City's proprietary fund types:
38
CITY OF’ CARLSBAD \ Notes to General Purpose Financial Statements (Continued)
(1) Summarv of Significant Accounting Policies. (Continued) Enterprise Funds 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. Internal Service Funds Internal Service funds are used to account for goods or services 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: &encv 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. ACCOUNT 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: General Fixed ,Assets Account Groug This -account group is used to account for all fixed assets of the City other than those accounted for in the proprietary funds. General Long-term Debt Account Grout This account group is used to account for all long-term obligations of the City except those accounted for in the proprietary funds and trust funds.
39
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Simificant Accounting Policies. (Continued)
Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measuremen
focus. Accordingly, only current assets and current liabilities arc included on their balance sheets, and the reported fund balance provide
an indication of available, spendable resources. Operating statements fo governmental fund types report increases {revenues) and decrease
(c)
(expenditures) in available, spendable resources.
The proprietary fund types are accounted for on an "incomt determination" or "cost of services" measurement focus. Accordingly, a1 assets and liabilities are included on the balance sheet, and the reportec
fund equity provides an indication of the historical net worth of tht fund. Operating statements for proprietary fund types report increase! (revenues) and decreases (expenses) in total historical net worth.
Fiduciary fund types are custodial in nature (assets equal liabilities) an( do not involve measurement of results of operations. Fiduciary fun( assets and liabilities are accounted for on the modified accrual basis 01 accounting.
Governmental fund types use the modified accrual basis of accounting. Revenues are recognizable when susceptible to accrual, Le., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the individual programs are used as guidance.
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.
40
I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued) 0
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f1, Summary of Simificant Accounting Policies. (Continued)
Governmental expenditures are recorded when the related fund liabi is incurred. Principal and interest on general long-term debt recorded as fund liabilities when due or when amounts have b accumulated in the debt service fund for payments to be made earl!
the following year.
Proprietary funds use the accrual basis of accounting, i.e., revenues recognized in the period earned and expenses are recognized in the per incurred. i (d) Encumbrances
Encumbrance accounting, under which purchase orders, contracts i other commitments for the expenditure of monies are recorded in or
to reserve that portion of the applicable appropriation, is employed as extension of formal budgetary control in the governmental fur Encumbrances outstanding at year-end do not constitute expenditures liabilities, but are reported as reservations of fund balance.
(e) Cash and Investments
Cash includes amounts in demand and time deposits. Investments stated at cost or amortized cost, except for deferred compensal assets which are shown at market value.
The City maintains a cash and investment pool that is available for by all funds. Interest income earned as a result of pooling is allocatec the appropriate funds based on average monthly cash balance. 1
(f) Inventories
Inventories consist of materials and supplies that are valued at cost i are recorded as expenses on a first-in, first-out basis when consumed. 1 (g) Compensated Absences
Vacation pay is payable to employees at the time used or ul termination of employment. For governmental funds, the cost accumulated vacation expected to be paid in the next 12 months recorded as a fund liability and amounts expected to be paid after months (if any) are recorded in the general long-term debt acco
group. For compensated absences recorded at June 30, 1993, all balan are expected to be paid within the following 12 months. For propriet funds, the cost of vacation is recorded as a liability when earned.
41
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
fl) Summarv of Significant Accounting Policies. (Continued)
(h) Risk Management
The City accounts for its general liability, health insurance, and worker2 compensation activities in internal service funds. The funds ar responsible for collecting premiums from other City funds an departments and paying claims settlements and insurance premium! Interfund premiums are based on the insured fund's claims experiencc Incurred but not reported claims are accrued at year-end if material.
(i) Unbilled Services
Unbilled water revenue of the enterprise funds is recognized as earne when the water is consumed.
(j) General Fixed Assets
General fixed assets are recorded as expenditures in the governmenta
account group. In the case of gifts or contributions, such assets arc
recorded at fair market value at the time received.
Fixed assets consisting of certain improvements other than buildings including roads, bridges, curbs and gutters, streets and sidewalks, anc drainage systems, have not been capitalized. Such assets normally arc immovable and of value only to the City. Therefore, the objective o stewardship for capital expenditures is satisfied without recording thesc assets.
In the general fixed assets account group, construction in progress is transferred to buildings or improvements upon approval by the Citj Council, which approximates the completion date.
No depreciation has been provided on general fixed assets.
Propertv. Plant and EauiDment - ProDrietarv 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.
fund types and capitalized at historical cost in the general fixed asset
(k)
42
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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(Continued)
/1) Summarv of Significant AccountinP Policies. (Continued)
Depreciation is charged to operations using the straight-line meth
based on the estimated useful life of the related asset. The estimat useful life of the assets are as follows:
Years
Buildings and improvements 10 - 50 Wells, reservoirs and dams 10 - 100 Transmission and distribution lines 40 - 70 Sewer, sewer lines and wells 50 Sewage treatment facility 55
Equipment 3- 20 Filters, pumps and fire hydrants 10 - 50
(1) Deferred Revenue
The deferred revenue in the General Fund represents interest due, 1 not available, on advances to other funds.
The deferred revenue in the Debt Service Funds represents spec assessments receivable.
The deferred revenue in the Capital Projects Funds relates to ful received and to be applied toward future construction.
The deferred revenue in the Enterprise Funds relates to deposits in-kind prepayments for services to be rendered (e.g., sewer installati etc.).
Statement of Cash Flows - Promietarv Funds
For purposes of the statement of cash flows, the Proprietary Fu consider all highly liquid investments with an original maturity of th months or less when purchased and all amounts invested in a cash investment pool to be cash equivalents.
t
(m)
(n) Advances to Other Funds
Interfund loan receivables are reported as advances and are ofi equally by a fund balance reserve which indicates that they do constitute expendable available financial resources and therefore are available for appropriation.
43
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/1) Summarv of Significant Accounting Policies. (Continued]
(0) Residual Equity Transfers
Residual equity transfers represent non-routine transfers of equit: between funds, including amounts transferred to reflect the opening closing, or reclassification of funds.
@) Total Columns
Total columns on the combined statements are captioned "Memorandur Only" to indicate that they are presented only to facilitate financia analysis. Data in these columns do not present financial position, result of operations, or cash flows in conformity with generally acceptel accounting principles. Such data is not comparable to a eansalidatio since interfund eliminations have not 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 Council i proposed operating budget for the fiscal year commencing the followinj July 1. The budget includes proposed expenditures and estimate( revenues on a departmental basis.
2. Public hearings are conducted at City Council meetings to obtaiI citizens' comments during June.
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 for up to $25,000. Revisions that alter the total appropriations of any fund 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.
44
1 CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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/2) Budgetary Data. (Continued)
Expenditures may not exceed budgeted appropriations at the departmental level. , appropriations lapse at fiscal year-end unless City Council takes formal action in I form of a resolution to continue the appropriation into the following fiscal year.
For purposes of budgetary presentation, actual generally accepted account
principles (GAAP) expenditures have been adjusted to include encumbranc outstanding and designations for continuing appropriations at year-end. Ann budgets are adopted for the General, Special Revenue and Debt Service Funds excc for the following: Mortgage Revenue Bonds, Building Authority, College Bouleva Hosp Grove COP'S, and Parking Authority. Accordingly, the revenues i expenditures for these funds have been excluded from the budget basis financ statements. Annual budgets are not adopted for the Capital Projects Fun therefore, budget basis financial statements have not been prepared because comparison of such budgetary amounts to annual revenues and expenditures is 1 meaningful.
The following schedule is a reconciliation of the budgetary and GAAP fund balancc
Special Debt General Revenue Service 1 Fund Funds Funds
Fund balances-budgetary basis $17,203,393 8,158,204 1,787,7;
- Encumbrances outs tanding at yea r-end 482,616 1 , 000,274 Fund balances designated for continuing appropriations 147,947 598,557 -
Fund balances - W basis $17.833.956 9.757.0354.601.6'
t Fund balances of nonbudgeted funds - - 2.813.81
/3) Cash and Investments
Each participating fund's portion of the City's cash and investment pool is displaj the combined balance sheet as "Cash and investments." This category also inc cash and investments that are held separately by several of the City's funds.
45
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
13) Cash and Investments. (Continued)
Authoritv for Deposits and Investments:
The City's investment policy and state statutes authorize the City to invest i obligations of the U.S. Treasury, its agencies and instrumentalities, commercia paper rated A-1 by Standard and Poor's Corporation or P-1 by Moody's Commercia Paper record, banker's acceptances with a maximum maturity of 270 days repurchase agreements, certificates of deposit with national and state licensed ol chartered banks or federal or state savings and loan associations, medium-tern
corporate notes with a maximum five-year maturity rated in the three top ratinl categories, money market and mutual funds whose portfolios consist of one or mort of the foregoing investments, the County Treasurer's investment pool, and the Stati Treasurer's investment pool.
State statutes require that all deposits be insured or collateralized. Depositoriei holding public funds on deposit are required to maintain collateral in the form of i pool of government securities with a market value of at least 10 percent in excess o- the City's deposit or 50 percent in excess of the deposit as collateral in mortgage pools.
Cash and investments held by the City at June 30, 1993 consisted of the following:
6,173 1,306,051 Depos i t s Investments 130,234.032
$131 z 546: 2s
Cash on hand (petty cash) $
Cash and investments are classified in the accompanying combined balance sheet as
follows:
Cash and investments $120,238,557 5,905,967 Deferred compensation investments Restricted assets: Cash and investments 5.401.732
$131.546.256
Deposits:
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
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1 CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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I Total deposits %262.556;1.512.0871.774.643 La!
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/3) Cash and Investments. (Continued)
collateralized with securities held by the pledging financial institution or its tr
department or agent but not in the City's name (Category Three) at June 30, 1993
CatePory Bank Cai Form of DeDosit 1 2 3 Balance - AI
Demand deposits $162,556 - 1,351,087 1,513,643 1,Od Certificates of deposit 100.000 L 161.000 261.000 - 2(
Investments:
The City categorizes investments according to the level of risk assumed by City. Catetory One includes investments that are insured, registered or held by City's agent in the City's name. Category Two includes uninsured and unregistr
investments held by the counterparty's trust department or agent in the Ci
name. Category Three includes uninsured and unregistered investments held by counterparty, its trust department or its agent, but not in the City's name. Cer investments have not been categorized because securities are not used as evidc of the investment. These uncategorized investments include ownership interest the Local Agency Investment Fund, County Treasury Investment Pool and mu funds and similar instruments. The summary below identifies the level of assumed by the City and the total carrying amount and market value of the Ci invest ments.
Cat enorv Carrying
Form of Investment 1 2 3 Amount -
U.S. Government agency ob1 igat ions $19,827,961 1,549,526 - 21,377,487 2 U.S. Treasury securities 6,322,937 309,346 - 6 , 632,283 Corporate notes 32.997.840 - - - 32.997.840 3
$59.148.7381.858.872- 61,007,610 E
State investment pool (LAIF) 30,793,383 3 County investment pool 20,826,131 2 Guaranteed investment contracts 1,382,394 Mutual funds 16.224.514 _1
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Total investments $130.234,032 &
47
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
L4) Due To and From Other Funds
The following table shows amounts due from funds within the City to other fu
within the City at June 30, 1993:
Due to Enterurise
Fund Fund Totals General Sewer
Due from: Special Revenue Funds:
Capital Projects Funds:
Enterprise Funds:
215,019
Senior Nutrition Fund 13,494 - 13 , 494
Community Development Block
Carlsbad Municipal Water
Section 8 Housing Authority Fund $215,019 -
Grants Fund 13,655 - 13,655
District (CnnWD) - 204,657 204,657
Total %242.168204.657446.825
(51 Advances To and From Other Funds
The following table shows amounts advanced from funds within the City to other fur within the City at June 30, 1993:
Advances From Advances To Amount
General Fund Capital Projects Funds: Park Development Fund $ 2,550,000 Planned Local Drainage
Facilities Fund 300 , 000 Redevelopment Area I1 Fund 30,000 Redevelopment Project Fund 7,924.846
10,804,846
Capital Projects Funds: Capital Projects Funds: Capital Construction Fund Public Facilities Construction Fund 950 , 000 Traffic Impact Fund 750,000
1.700.000
Total advances $12 z 504.846
48
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
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(6) General Fixed Assets
A summary of changes in the general fixed assets account group is as follows:
Balance at Balance at
Julv 1. 1992 Additions Deletions June 30. 195
Land $25,946,668 - - 25 9 946,662
Buildings 26,664,097 741,039 - 27,405,13f
Improvements 2,055,632 763,812 - 2,819,44L
Furniture and equipment 5,305,004 468,662 (867,460) 4,906,201 Construction in progress 3,064,803 380,490 (1,504,974) 1,940,31'
Total %63.036.2042.354.003(2.372.434) 63.017.77
Construction in progress in the general fixed assets account group is composed o following:
Expended Project Balance at Authorization June 30. 1993 Committe
Library - South Carlsbad $1,138,729 1,099,803 38,926
Public Art - South Carlsbad
Poinsetta Park 3,087,000 491,282 2,595,718 100,000 81,069 18,931 Poinsetta Park Land Acquisition Larwin Park (22.3 acres) 190,000 173,331 16,669 Public Art = Seawall 30,000 15,000 15,000
North Beach Restrooms 18,000 3,689 14,311 Fire Station #1 Renovation 175.000 489 174.511
Library 170,000 75,656 94,344
%4.908.729 1.940.319-
There is no future financing commitment required on any of the above construction projects.
Property, Plant and Equipment - ProDrietarv Funds
A summary of proprietary fund type property, plant and equipment at June 30, follows:
(7)
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(7) F'rouertv, Plant and Equipment - Prourietarv Funds, (Continued)
En t e rDr i s e Internal Serv
Land, water rights, rights-of-way $ 2,157,600 -
Buildings and improvements 5,817,620 -
lells, reservoirs and dams 17,324,132 -
Transmission and distribution lines 32,301,912 -
Sewer, sewer lines and wells 25,602,381 -
Sewage treatment facility 31,698,579 -
Equipment and vehicles 2,165,301 5,240,437 Construct ion in progress 3.636.981 -
120,704,506 5,240,437
Less accumulated depreciation (20.351.043) (2.482.231 )
Property, plant and equipment, net $100 - 353. 463 2.758.206
Enterprise Fund interest is charged to expense as incurred, except for interest rela? to borrowings used for construction, which is capitalized net of interest earned construction funds borrowed. Interest capitalization ceases when the construct project is substantially complete and placed in service. No interest costs w( capitalized in the Enterprise Funds during 1993. Total interest costs incurred i interest earned on related interest-bearing investments acquired with proceeds of * tax-exempt borrowings were $1,686,990 and $227,106, respectively.
The Enterprise funds had various construction contracts in progress at June 30, 19 with an estimated cost to complete of approximately $2,725,000. There is no futt financing required on any of these projects.
(8) Obliaations Under Capital Leases
In August 1987, the City entered into a sale and leaseback agreement with a financ institution for the Community Development Building. Principal and interest paymei totaling $234,529 are to be paid each year through 1997. The City's leasehold intere of $1,602,160 has been recorded in the City's general fixed asset account group.
The following is a summary by year of future minimum lease payments remaining und capital leases and the present value of minimum lease payments at June 30, 1993:
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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18) Obligations Under CaDital Leases. KO ntinued)
Year endinn June 30,
$ 234,529 234,529 1995 1996 234,529
1997 234,529 8 1998 117.264
Total minimum lease payments 1,055,380 Less amounts representing interest (181.092)
Present value of minimum lease payments $ 874.288
1994
(91 Obligations Under ODerating Leases
In June 1988, the City's Redevelopment Agency entered into an agreement to leas parking lot from a private party. The lease requires monthly rental payments * twenty years. Total annual rent payments are $44,091 for fiscal year en& June 30, 1994 with annual cost of living adjustments required and market va
future minimum rental payments have been calculated with a 6% annual cost living adjustment.
In May 1990, the City's Redevelopment Agency entered into an agreement to leas parking lot on Carlsbad Village Drive from a private party. The lease requi annual rental payments for five years. Total annual payments are $52,200 for fis year ending June 30, 1994 and $43,500 for fiscal year ending June 30, 1995.
The following is a schedule by year of future minimum rental payments requi under the operating leases at June 30, 1993:
adjustments required every 5 years after fiscal year ending June 30, 1988. 1
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Year ending June 30,
$ 96,291 1994 1995 90,236 1996 49,541 1997 52,513 1998 55,664
Thereafter 777.717
Total minimum lease payments $1.121.962
I 51
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-term Debt
The following is a summary of changes in the principal balance of long-term debt fo the year ended June 30, 1993:
Principal Pr inc ipa 1 Balance at Balance at JUIV 1, 1992 Retirements June 30. 199:
General long-term debt
account group: Bonds $12,960 , 000 500,000 12 9 460,000 Special assessment debt with
governmental commitment 8,465 , 000 885,000 7,580,000 Obligations under capital
leases 1,030,622 156,334 874,288 Certificates of participation 8.090.000 260,000 7,830,000
Total general
long-term debt $30.5 45.622 1.801.334 28.744,288
11 9 370,000
12,689,800
Enterprise funds: Cer t i f i cat es of part icipat ion $12,055,000 685 9 000 Installment purchase agreement 12,689.800 -
Total enterprise funds 685.ooo 24-059.~00
Long-term debt at June 30, 1993 is comprised of the following issues:
Balance at June 30. 1993 General Long-term Debt:
1969 Carlsbad Parking Authority Revenue Bonds, principal due in amounts ranging from $100,000 to $125,000 on October 1 of each year through 1995, interest payable on October 1 and April 1
at 6.4% per annum, payable from the General Fund
1981 Carlsbad Parking Authority Revenue Bonds, principal due in amounts ranging from $100,000 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 Fund 925,000
Parking authority revenue bonds 1,275,000
$ 350,000
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I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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110) Long-term Debt, (Continued)
Balance at June 30, 199: General Long-term Debt, (Continued):
1988 Carlsbad Housing and Redevelopment Commission Tax Allocation Bonds, principal due
in amounts ranging from $305,000 to $595,000 on April 1 of each year through 2003, a principal payment of $2,890,000 on April 1, 2007, and a principal payment of $3,950,000 on April 1, 2011, interest payable on October 1 and April 1 at rates varying from 5.9% to 7.8% per annum 11.185.000 B Tot a 1 bonds payab 1 e 12,460,000
1986 College Boulevard Assessment District Bonds,
$865,000 on September 2 of each year through 2006,
interest payable on September 2 and March 2 at rates varying from 7.25% to 8.0% per annum 7,580,000
Obligations under capital leases (note 8) 874,288
1988 Hosp Grove Certificates of Participation, principal due in amounts ranging from $275,000 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 7,830.000
Total General Long-term Debt $28.744.288
principal due in amounts ranging from $290,000 to
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Enterprise Fund Long-term Debt:
1988 Carlsbad Municipal Water District Certifi- cates of Participation, principal due in vary-
ing amounts ranging from $730,000 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
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(
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$11,37O,OOC
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/lo) Long-term Debt. (Continued)
Balance at
June30. 1993
Enternrise Fund Long-term Debt. ( Continued):
Less unamortized discount and issuance costs (706,246)
Less current portion (1.004.630)
Total Enterprise Fund Long-term Debt $22.348.924
Reserve funds of approximately $5,130,000 are required to be held in debt sew funds to secure the payment of principal and interest on the outstanding debt issues.
A portion of the Tax Allocation Bonds are subject to mandatory redemption in p from sinking fund payments. These sinking fund payments have been included in '
debt service requirements which follow.
Debt service requirements to maturity for general long-term debt are as follows:
Parking Tax Assessment Certificates
Authority Allocation District of
Revenue Bonds Bonds Bonds Participation Total
1994 $ 293,200 1,135,828 876,643 865,054 3,170,725
1995 303 y 000 1,142 y 222 898,350 866,873 3,210,445
1996 287,000 - 1,146,598 897,107 866,733 3,197,438
1997 150,000 1,148,522 898,413 859,795 3,056,730
1998 167,000 1,148,062 901,929 860,985 3,077,976
1999-2003 466,000 5,806,054 4,500,265 4,284,040 15,056,359
2004-2008 - 5,876,260 3,603,200 4,256,800 13,736,260
2009-2011 - 3.567.180 - 851.600 4.418.780
1,666,200 20,970,726 12,575,907 13,711,880 48,924,713
Less mounts
representing
interest 1391,200) (9.785.726) 14,995,907) J5.881.880) J21.054.713)
Total general
long-term debt &.275.OOQ 11.185.00Q 7.580.00Q 7.830.000 27.870.00Q
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I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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{lo) Long-term - Debt, (Continued)
Debt service requirements to maturity for the enterprise funds are as follows:
Water Encina District Installment Certificates of Purchase ParticiDation An reemen t Total
1994 $ 1,528,696 1,110,706 2,639,4(
1995 1,526,248 . 1,108,498 2,634,7L
1996 1,525,098 1,108,730 2,633,8;
1997 1,524,822 1,107,542 2,632,3( 1998 1,524,982 1,106,820 2,631,8(
1999-2003 7,629,380 5,522,606 13,151,91
2004-2008 1,529,024 5,492,250 7,021,2' 2009-2013 - 5,452,970 5,452,9' 201 4-20 15 - 2.170.425 2.170.4:
16,788,250 24,180,547 40,968,7!
I interest (5.418.250) (11.490.747) (16.908.9' Less amounts representing
Total Enterprise Fund debt $11.370.000 12.689.800 -24.059-8 (
At June 30, 1993, the City was in compliance with all significant debt covenants.
In November 1988, the District issued $14,370,000 in Certificates of Participatic portion of the proceeds was used to refund $12,000,000 of the outstanding
irrevocable trust with an escrow agent to provide for all future debt service pay on the 1984 COPs. As a result, the 1984 COPs are considered to be defeased ai liability for those certificates is not included in the City's financial statemeni June 30, 1993, $9,850,000 of outstanding 1984 COPs are considered defeased.
The College Boulevard Assessment District Bonds were issued under the provisi the Improvement Bond Act of 1915. The bonds were issued to finance the infrastructure improvements project on College Boulevard. If a delinquency occ the payment of the assessment installments, the City, at the end of the fisca
Certificates of Participation (1984 COPS), The District deposited funds
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
110) Long-term Debt. (Continued)
of delinquency, has a duty to transfer to the debt service fund the amount of th delinquency out of available funds of the City. Available funds consist of any surph funds of the City not required for lawful municipal obligations. This duty of the Cit
is continuing during the period of delinquency, until reinstatement, redemption c sale of the delinquent property. Even though neither the faith and credit nor th taxing power of the City is pledged for the payment of the bonds, the City obligated in the manner stated above. Accordingly, these bonds have been recorde in the general long-term debt account group of the City.
The College Boulevard Assessment District has delinquencies in the amount c $450,784 for assessments due in fiscal years 1990-91, 1991-92, and 1992-91 Although the delinquencies are 20% of the total assessment, only one major propert owner is delinquent and all principal and interest payments were made without use o the reserve fund. The City's suit to foreclose on the property, which was delaye because of bankruptcy actions, is expected to occur in 1994.
ill) Fund BalancedRetained Earnings
The following is a summary of reserved and unreserved fund balances and retaine earnings as of June 30, 1993:
Governmental Fund Tvpes
Special Debt bpi tal
Fund Balances General Revenue Service Proiects
Reserved for:
Loans receivable $ - 114,864 - -
Inventory 27,672 - - -
Prepaid expenditures - - -
Debt service - - 4,599,029 -
Advances to other funds 7,086,107 - -
Low and moderate income housing - 2,319,379 - -
Encumbrances 482.616 1,000,274 -
194,372
1,700,000
Rent interrupt ion insurance 131,000 - - -
6,479 I 392
7,727,395 3.628.889 4.599.029 8,179,392
Unreserved:
Designated for approved
Designated for continuing
121,400 - 19,790.307 capital projects -
appropriations 147,947 598,557 - -
Designated for arbitrage - - 2,625 -
settlement 825, oao - - - Designated for AerospaceIPERS
Undesignated 9.133.614 5.408.189 - (2,933,658)
10.106.561 6,128,146 2,625 16,856,649
Total fund balances $27.833.956 9.757.035 4.601.65 4 25.036.0 41
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1 CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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(1 1) Fund BalancedRetained Earnings. (Continued)
Proprietarv Fund Type; Intern; Retained Earninas Enterorise Servicc
Reserved for: Debt service $ 3,039,148 -
Rate stabilization and other 878.072 -
3,917,220 -
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Unreserved 31,388.746 4,381.6
Total retained earnings $35.305.9664.381.6
Reserves for loans receivable, inventory, prepaid expenditures and advances to o funds, net of accrued interest recorded as deferred revenue, are established to s that certain assets are already committed to other purposes and are not available discretionary expenditures.
Reserves for debt service represent resources legally restricted to the paymen long-term debt principal and interest maturing in future years.
Reserves for low and moderate income housing represent monies required tc expended on low and moderate income housing.
Reserves for rent interruption insurance represents monies required to be set a I under a bond indenture.
Reserves for encumbrances represent commitments related to unperfor contracts for services and undelivered goods.
Reserves for rate stabilization and other represent amounts restricted to oi future water rate increases and other uses.
Unreserved-undesignated represents the fund balance or retained earnings remai after reduction for reserved and designated fund balances or retained earnings.
As of June 30, 1993, the Capital Projects - Redevelopment Agency Fund
Redevelopment Area I1 Fund had a deficit fund balance of $7,873,619 and $13, respectively. The deficits are expected to be funded by property tax incrern received in the future. The General Liability Self Insurance Fund had de retained earnings of $1 8,769.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
f12) ChanPes in Contributed Cauital
Internal
Enterprise Service
Contributed capital at June 30, 1992 $75,487,426 5,571,402
Additions : Cash 822,338 - Fixed assets 2 , 753,202 370,538 Residual equity transfer from General Fund 565,200 474,000 Residual equity transfer from Enterprise Fund - 55,999
Contributed capital at June 30, 1993 $79.628.166 6 ~ 471.939
113) Risk Mananement
The City is exposed to various risks of loss related to theft of, damage to, and destruction of assets; emors and omissions; injuries to employees; and natural disasters.
Effective January 1, 1991, the City became a participating member of the California Municipal Insurance Authority (CMIA) risk-management pool. Under this program, the pool provides coverage for up to a maximum of $5,000,000 per claim with a
self-insured retention to be provided by the City in the amount of $500,000 per claim. In addition, excess general liability insurance coverage up to $10,000,000 is provided for catastrophic losses. Under the terms of the agreement with CMIA, the City must maintain an unencumbered portion of fund equity equal to $1,500,000. At June 30, 1993, unencumbered fund equity for the General Liability Self-Insurance Fund was approximately $1,900,000.
/14) Joint Ventures
Encina Water Pollution Control Facility:
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 (the 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, 1993, the Cities and Districts have the following approximate ownership interest:
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I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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(14) Joint Ventures. (Continued)
Encina Water Pollution Control Facilitv, (Continued)
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 Authority, dated June 30, 1992, sh the following:
Total assets $125,229,321 I Total liabilities 3.801.377
Fund balance $121.427.944
The Authority does not recognize net income or loss. Net operating expenditures
excess of users' assessments are treated as accounts receivable on the Authorit
books and charged to users' accounts in the following year. Conversely, USE assessments in excess of net operating expenditures are treated as a liability i credited against users' accounts, also in the following year. Under this basis, operating revenues for the Authority totaled $1,117,243 in fiscal year 1992.
The City accounts for its portion of the Facility as a fixed asset of the Sei
Enterprise Fund.
Encina Financing Joint Powers Authoritv:
The Encina Financing Joint Powers Authority (the Authority) was created February 1, 1989 between the City of Carlsbad, the City of Vista, the Buena Vi Sanitation District and the Leucadia County Water District. The primaxy purpose the Authority is to issue revenue bonds in order to finance the expansion of Facility. Repayment of the bonds will be accomplished through payments made each member of the Authority pursuant to installation purchase agreements. '
individual agreements set forth the purchase price and specify the debt sen requirements for each member.
59
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(14) Joint Ventures. (Continued)
Encina Financing; Joint Powers Authority. (Continued)
The Authority is governed by a Board of Directors, which consists of one director
appointed by each member.
In August 1989, the Authority issued $33,500,000 of revenue bonds and executed installment purchase agreements for approximately the same amount. The following is a table of the outstanding balance owed as of June 30, 1993 by each member anc their approximate share in the additional capacity.
Installment Approximate Member ba 1 ance share
Buena Vista Sanitation District $ 6,614,895 19.75% City of Carlsbad 12,690,917 37.88% Leucadi a County Water Di s t r i c t 7,965,181 23.78% City of Vista 6.229.007 18.59%
$33.500.000 100.00%
The installment balances are secured by a pledge of the revenues from each member's wastewater system, net of a deduction for maintenance and operating costs. Covenants within the agreements require the members to, among other
things, (1) maintain insurance on the facility, and (2) establish wastewater rates which are sufficient to pay the operating costs and debt service on the bonds and which will result in net revenues equal to at least 1.1 times the annual installment
payments due.
The City's share in the accounts of the Authority is recorded in the Sewer Enterprise Fund. The expansion of the Facility is shown as an addition to the fixed assets of the Sewer Enterprise Fund.
(1 5) Retirement Plan
The City contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer public employee retirement system that acts as a eamman investment and administrative agent for participating public entities within the State of California. For the year ended June 30, 1993, the payroll for employees covered by the PERS was $21,161,192. Total payroll for the same period was $23,678,357.
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8 CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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/15) Retirement Plan. (Continued)
All full-time employees are eligible to participate as members of PERS. Benefi
vest after an employee has been a member of the plan for five years. Employees a eligible to retire after ages 50 to 60 with 5 years of credited service. Annu retirement benefits are determined based on age at retirement, the length membership service and the amount of earnings based on the highest tweb consecutive months average. The PERS also provides death and disability benefil
These benefit provisions and all other requirements are established by state statute
Employees are required to make contributions ranging from 7 to 9 percent of grcl
pay. The City is required to contribute the remaining amounts necessary to fund tl benefits for its members, using the actuarial basis recommended by the PEI
actuaries and actuarial consultants and adopted by the PERS Board Administration, The employee contributions are made by the City on behalf oft.
The amount shown below as the "pension benefit obligation" (PBO) is a standardiz disclosure measure of the present value of the pension benefits, adjusted for t effects of projected salary increases and steprate benefits, estimated to be payat in the future as a result of employee service to date. The measure is intended help users assess the funding status of the PEE on a going-concern basis, ass€ progress made in accumulating sufficient assets to pay benefits when due, and ma comparisons among employers. The measure is the actuarial present value credited projected benefits, and is independent of the funding method used determine contributions to the PERS.
The PBO was computed as part of actuarial valuations performed as of June : 1991. Significant actuarial assumptions used in the valuation include (a) a rate
return on the investment of present and future assets of 8.75 percent a ye compounded annually (8.5 percent as of June 30, 1990), (b) projected salary increar
of 4.5 percent a year campaunded annually (5 percent as of June 30, 199 attributable to inflation, (c) additional projected salary increases of 2.5 percent (2, percent for Carlsbad's safety employees) a year (2 percent as of June 30, 1990 for employees), attributable to seniority/merit, and (d) no post-retirement bene increases. The impact on current year contributions from changes in actuar
assumptions is not available.
The total unfunded (assets in excess of) pension benefit obligation applicable Carlsbad and District employees was $2,895,291 and $(27,431), respectively, at Ji 30, 1992 (the date of the latest actuarial valuations) is as follows:
I
1 employees.
61
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1.5) Retirement Plan. (Continued)
Carl sbad District Total
Pension benefit obligation: Retirees and beneficiaries currently receiving benefits
and terminated employees not yet receiving benefits $20,174,435 1 p 191,629 21,366,064
Accumu 1 ated employee
Current employees:
contributions including
allocated investment earnings 14,098,275 705,489 14,803,764 Employer financed-vested 18,079,652 - 18,079,652 1.519.415
Total pension benefit obligation 53,871,777 1,897,118 55,768,895
Employer financed-nonvested . 1,519.415 -
Net assets available for benefits at cost 50.976,485 1.924.549 52.901.034
Unfunded (assets in excess of) pension
benefit obligation L2AiL22 (27.431)-
The market value of the net assets available for benefits as of June 30, 1992 w $57,501,475 and $2,170,891 for Carlsbad and the District, respectively.
Of the total change in the PBO for Carlsbad and the District from the prior year, no1 of the changes resulted from changes in benefit provisions or actuarial assumptions.
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected benef
future as well as those already accrued. According to this cost method, the norm cost for an employee is the level amount which would fund the projected benefit if were paid annually from date of employment until retirement. PERS uses modification of the Entry Age Cost Method in which the employer's total normal co: is expressed as a level percentage of payroll. PERS also uses the level percentage ( payroll method to amortize any unfunded actuarial liabilities. The amortization peric of the unfunded actuarial liability ends on June 30, 2000.
cost method. It takes into account those benefits that are expected to be earned in tl
62
I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued) I
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(15, Retirement Plan. (Continued)
The significant actuarial assumptions used to compute the actuarially determin
contribution requirement are the same as those used to compute the pension bene, obligation, as previously described.
The actuarially determined employer and employee contributions applicable to t
City at June 30, 1993, based on an actuarial valuation as of June 30, 1991, were
follows:
Car 1 sbad
Emlovees EmD 1 ovee s Covered Covered Contributions Pavroll Contributions Pavroll
Miscellaneous Safety
Required normal cost con t r i but ion $2,031,676 14.92% 1,798,689 23.84%
Amortization of the unfunded actuarial accrued liability 89.690 .66% 309.365 4.10%
Total required
contributions %2.121.366 15.5_8% 2.108.054 27.94%
Actual employer contributions 1,183,724 8.70% 1,435,293 19.02% Contributions made by the City on behalf of employees 937.642 6.88% 672.761 8.92%
Total actual
The following is a three-year trend information which gives an indication of progress made in accumulating sufficient assets to pay benefits when due:
63
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
f15) Retirement Plan, (Continued)
Cap 1 sbad District - 1992 I 1991 1990- 1992 - 1991 - 1990
Bet assets available
for benefits as a
percentage of pension
benefit obligation 94.6% 93.2% 93.9% 101.4% 105.6% 106.4%
Unfunded (assets in excess
of) pension benefit
obligation as a
percentage of annual
covered payroll 13.0% 17.2% 15.8% - (7.3)% (8.5)
Actuarially determined
employer contributions
as a percentage of
annual covered payroll 12.4% 10.8% 10.8% - 7.5% 2.4%
Ten-year trend information is not currently available from the California Put
Employees Retirement System; therefore, only the available information is presentec
Required Supplementary Information
Analysis of Funding Progress
Carlsbad
(Unaud i t ed)
Actuarial Ret Assets Unfunded Pen
Valuation Available Pens ion Unfunded Annual Benefit Ob1 ig
as of for Benefits, Benefit Percentage Pension Benefit Covered as a Percenta
June 30 at Cost Obligation Funded Oblixation Pavro11 Annual Covered
1987 $23,855,500 26,158,700 91.2% 2,303,200 12,147,900 19.0%
1989 32,905,600 35,221.700 93.4% 2,316,100 15,378,600 15.1%
1990 38,955,507 41,495,649 93.9% 2,540,142 16,071,500 15.8%
1988 28,385.300 30,249,400 93.8% 1,864.100 13,170,000 14.2%
1991 44,473,550 47,736,607 93.2% 3,263,057 18,983,745 17.2%
1992 50,976,400 53,871,700 94.6% 2,895,300 22,249,000 13.0%
64
I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued) I
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/15) Retirement Plan, (Continued)
Required Supplementary Informat ion
Analysis of Funding Progress, Continued
(Unaudited) 8 District
Actuarial Net Assets Unfunded
Valuation Available Pens ion Unfunded Annua 1 Benefit Oh
as of for Benefits, Benefit Percentage Pension Benefit Covered as a Perce
June 30 at Cost Obligation Funded Obligation Pavroll Annual Cover
1987 $ 823,110 749,880 109.8% 73,230 825,380 8.92
1988 981,451 941,218 104.3% 40,233 960,250 4.2'1
1989 1 I 217,447 1,141,723 106.6% 75,724 1,026,090 7.41
1990 1,463,415 1,374.798 106.4% 88,617 1,047,044 8.57
1991 1,705,889 1,616,014 105.6% 89,875 1,229,551 7.37
1992 1,924,540 1,897,110 101.4% 27 , 430 - -
(16) Deferred ComDensation Plan
The City offers its employees a deferred compensation plan created in accordanci Internal Revenue Code Section 457. The plan, available to substantially all full employees, permits them to defer a portion of their salary until future years. An deferred may not exceed the lesser of $7,500 or 25% of a participants' "inch
compensation," as defined in the participation agreement. The deferred compen is not available to employees until termination, retirement, death or unforest emergency.
All amounts of compensation deferred under the plan, all property and rights pur( with those amounts, and all income attributable to those amounts, property or are (until paid or made available to the employee or other beneficiary) sole property and rights of the City (without being restricted to the provisions of be under the plan), subject only to the claims of the City's general crec Participant's rights under the plan are equal to those of general creditors of the C an amount equal to the fair market value of the deferred account of each particir
The City believes it has no liability for losses under the plan but does have the d due care that would be required of an ordinary prudent investor. The City be that it is highly unlikely that it will use the assets to satisfy the claims of g creditors in the future.
65
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/17) Post-Retirement Health Care
In addition to the pension benefits described in Note 15, the District, in accordanc
benefits to its full-time employees (including their dependents) who voluntaril retire after the age of 50 with no less than 5 years of service and whose ag combined with years of service equals 70 or more. Currently, three retirees me€ these eligibility requirements and are receiving benefits.
The District is to pay 100% of the premiums for health insurance which is to b coordinated with Medicare and other benefits provided by federal and state lav when available, to the extent it reduces the cost of insurance premiums Expenditures for post-retirement health care benefits are funded on q pay-as-you-go basis. Expenditures of approximately $7,000 were charged to expensl for post-retirement health care costs during 1993. Based on an actuarial valuatioi performed as of November 1991, the District's liability for the current and pas service costs of these benefits is approximately $1,600,000.
Segment Information for Entemrise Funds
The City maintains four enterprise funds that provide water, sewer and othe
with the District's Administrative Code, provides post-retirement health car
/18)
services. Segment information for the year ended June 30, 1993 is as follows:
Car lsbad
Mun i c i pa 1
District Course Sewer Waste Totals
Water Golf Sol id
Operating revenues $10,427,476 - 4,482,637 67,558 14,977,671
Operating expenses:
Depreciation and
amortization 1,102,100 - 1,152,700 - 2,254,800
Other 10,319.471 - 2,869,468 153.722 13.342.661
Operating income (loss) (994,095) - 460.469 (86,164) (619,790)
Nonoperating income
(expenses), net 958,073 87,369 55,550 59,354 1,160.346
Net income (loss) J) 87.369 516.019 4=2L&&!) 540.556
Residual equity
transfers out (23.500) - - (32.499) & (55.999)
(Continue(
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I CXTY OF CARLSBAD
Notes to General Purpose Financial Statements
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/18) Segment Information for Enterprise Funds. (Continued)
Car lsbad
Municipal
District Course Sewer Waste Totals
Water Golf Solid
Contributed capital:
Beginning balance $38,656,024 1,859,990 34,971,412 - 75,487,426
4,140,740
Ending balance $40.169.911 2.425.190 37.033.065 = - 79.6 28.166
Current year additions 1,513.887 565,200 2.061.653 -
Property, plant and
equipment :
Addit ions liA22u%m~a~
Delet ions &-l&z?u - - __. 290. 415 - - 467.142
Ret working capital $16.692.620 1.912.703 r5.279.781 58.452 33.9 43.556
Debt payable from I operating revenues uJauum! - 12.689.800 P - >2 4.059.80Q
Total assets $69,971,896 2,702,486 70,152,057 62.712 142,889,151
Total liabilities 12.925.684 25 15.026.693 2.621 27.955.019
Total equity $57.046.216 2.702.461 55.125.364 60.091 114-934.132
(19) Special Assessment Bonds Without Government Commitment
As of June 30, 1993, the City has four series of Assessment District Bonds outsti in the amount of $23,087,286. These bonds were issued under the provisions ( Improvement Bond Act of 1911 and 1915 and were used to finance public infrastri improvement projects. Reserve funds of approximately $2,430,000 are held to I payment of principal and interest on the outstanding bonds.
For the bond issuances noted above, the City is not obligated in any manner f payment of debt service in the event of default by the property owners but i acting as agent for the property owners in collecting the assessments, forwardi collections to bondholders, and initiating foreclosure proceedings, if appro] Accordingly, no liability for these bond issuances has been recorded in the G Long-term Debt Account Group and all debt service transactions have been recor
an Agency fund.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(20) Mortgage Revenue Bonds
Single-Family Mortgage Revenue Bonds have been issued to provide funds 4 purchase mortgage loans secured by first trust deeds on newly-constructed a1
existing single-family residences. The purpose of this program is to provide lo
interest rate home mortgage loans to persons of low or moderate income who ai unable to qualify for conventional mortgages at market rates. Multi-Family Housix Revenue Bonds are issued to provide construction and permanent financing developers of multi-family residential rental projects located in the City to L partially occupied by persons of low or moderate income. In May 1993, the Cit
issued $15,920,000 in multi-family Housing Revenue Bonds. The purpose of the5 bonds is to refund the La Costa 1985 Series A bonds.
The balance of the revenue bonds outstanding under these programs as of June 31 1993 is $32,338,227.
The bonds, together with interest thereon, are limited obligations of the Cil
payable solely from bond proceeds, revenues and other amounts derived solely fro1 home mortgage and developer loans secured by first deed of trust, irrevocabl letters of credit, and irrevocable surety bonds. In the opinion of City officials, thes bonds are not payable from any revenues or assets of the City, and neither the fu'
faith and credit nor the taxing power of the City of Carlsbad, the state a California, nor any political subdivision thereof, is obligated to the payment of th principal or interest on the bonds. Accordingly, no liability has been recorded in th General Long-term Debt Account Group.
One of the series of the Multi-Family Housing Revenue Bonds, with a curren
outstanding balance of $14,106,900, is in default due to non-payment. The surety i currently paying the debt service on the bonds.
(21) Commitments and Contingencies
The City is a defendant in certain legal actions arising in the normal course o
operations. In the opinion of management and legal counsel, any liability resultin1 from these actions will not result in a material adverse effect on the City's financia position.
In May 1993, the City of Carlsbad entered into an agreement with the San Diegc Association of Governments (SANDAG), whereby SANDAG will loan up ta $10,000,000 of TransNet local funds 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 Poinsettia Lane and La Costa AvenueA-5 Interchange Improvement Project. No money was borrowed under this agreement during the year ended June 30, 1993.
68
I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued) I
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(22) Reclassification of Funds
The accompanying financial statements reflect the reclassification of the Gas T
Fund from the Capital Projects Fund Type to the Special Revenue Fund Type better reflect the function and use of the fund. Beginning balances of the respecti fund types have been restated to reflect this change in the fund type classification
I S~ec i a 1 Revenue Cap; tal Project
Fund balances at July 1, 1992, as previously reported $6,542,783 28,649,145
Reclassification of fund 2.006.725 (2.006.725)
Fund balances at July 1, 1992, as restated %8.549.508 26.642.420
/23) Emenditures in Excess of Appropriations
Expenditures for the year ended June 30, 1993 exceeded appropriations of ' I following funds:
Variance- Favorab 1 e Budnet Actual (Unfavorable)
Special Revenue Funds : Community Development
Federal Grants
Debt Service Fund:
- 1,086 (1,086) 122,655 125,183 (2 9 528) Block Grant $
Redevelopment Bonds 1,395,217 1,876,922 (481,705)
(24) Particbation in San Diego Association of Governments (SANDAG)
The City is a member of the San Diego Association of Governments (SANDAG), a powers agreement for the purpose of engaging in regional cooperative comprehc planning, to assist the Member Agencies, and to provide a regional revi organization for certain federal and state grant projects.
SANDAG is currently comprised of 18 incorporated Cities from the San Diego I
and the County of San Diego.
69
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(24 Particination in San DieEo Association of Governments (SANDAG), (Continued)
Summary financial information for the year ended June 30, 1992 is presented b follows:
Total general fixed assets $ 1,375,633 Total other assets 533,864,826 Total general long-term debt 420,500,759
Total other liabilities 6,459,416
Total fund equity 527,405,410
Total expenditures/expenses 140,060,622 Total other financing sources (uses) 243,433,612 Net increase (decrease) in fund
balance/retained earnings 251,671,014
Total revenues 148,288,024
(25) Subseauent Events
On September 1, 1993, the Carlsbad Housing and Redevelopment Commission, ; component unit of the City of Carlsbad, issued $15,495,000 in tax allocation bonds The bonds were issued to defease the Carlsbad Housing and Redevelopmen Commission $12,000,000 tax allocation bonds Series A, and to provide money tc finance redevelopment activities within the project area. The interest rate is 5.25% payable semi-annually.
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GENERAL FUND
The general fund is used to account for resources traditionally associated with governi which are not required legally or by sound financial management to be accounted f another fund.
71
CITY OF CARLSBAD General Fund
Schedule of Revenues - Budget and Actual (Budgetary Bas is)
Year Ended June 30, 1993
Actual on Variance- Bugetary Favorab 1 e Budget Basis . I Un f avora b 1 e 1 Taxes : 614,871) 332,151) ( 101,207) 58,584
Property taxes $13,200,000 12,585,129 Sales and use taxes 9,500,000 9,167.849 Transient lodging taxes 3,200,000 3,098,793 Franchise taxes 925,000 983,584 Real property transfer taxes 200,000 184,424 ( 15,576) Trailer coach in-lieu tax - 3 5.867
Total taxes 27.025. OOQ 26.025.646 (999.354)
t
Licenses and permits: Construction permits 450,000 234,063 (215,937) Business licenses 975,000 1,071,342 96,342 License tax on new construction 425,000 143,322 ( 281,678) Other 300,000 276.046 (23.954)
permits 2,150.000 1.724.773 ( 425,227) Total licenses and
Fines and forfeits: Vehicle code fines 375,000 227,962 ( 147,038) Other - 3,915 3.915
Total fines and forfeits 375.000 231.877 (143.123)
Interest income 1.700.000 2.093.659 393.659
Interdepartmental services: Engineering 500.000 508,499 8,499 Legal - 13 7 683 13,683 Other 1.400.000 1.978.803 178.803
services 1,900,000 2,100,985 200,985
Grant revenue - 181.367 181,367
Cigarette tax - 7,845 7,845 Vehicle licenses (in lieu) 2,300,000 2,431,827 131,827 Property tax reimbursements 300.000 262.430 (37.570)
Total state subventions 2.600.000 2.702.102 102,102
To tal int erdepar tment a1
Intergovernmental:
State subventions:
Charges for services: Planning fees 750,000 603,426 ( 146,574) Building department fees 325,000 204,894 ( 120,106) Engineering fees 1,180,000 551,099 (628,901) Growth management zone plan fees 15,000 2,932 (12,068) Weed abatement fees 35,000 43,689 8,689 Ambulance fees 220,000 250,515 30,515 Park and recreation fees 750,000 697,365 (52,635) Other 344.300 481,615 137,315
Total charges for services 3.619.300 2.835.535 (783.765)
Miscellaneous: Sales of maps and publications - 54,959 54,959 Sales of property - 6,169 6,169 Reimbursed expenditures - 1,564,588 1,564,588 Other 306.435 187,668 (118.767)
Total miscellaneous 306.435 1.813.384 1.506.949
Total revenues s39.675.73539.709.328 33.593
72
CITY OF CARLSBAD General Fund
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30, 1993
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Actual on Variance- Bugetary Favorable
City council $ 159,368 153,747 5,621 City manager 846 , 830 840,373 6,457 City clerk 28 , 700 20,878 7,822 Visitors' bureau 302,809 302,809 - 111,000 - Community assistance 111,000
Budeet Basis 1 Un favorab 1 e I General government:
Hiring center 80,000 76,498 3,502 City attorney 368,463 362,318 6,145 Finance 890,772 862,921 27,851 City treasurer 85,380 71,115 14,265 Audit 71,530 71,530 -
Purchasing 371,029 329,801 41,228 Human resources 788,953 648,312 140,641 Information systems 373,364 359,784 13,580 21,107 Risk Management/insurance 198,326 177,219 Cont ingency 112 , 367 - 112,367 Other 1,959,175 780,862 1,178,313
Total general government 6-749.066 5.169.167 1 - 579.899
Police protection 8,798,924 8,603,014 195,910 Fire protection 6.822.337 6.813.767 8.570
Total public safety 15.621.261 15.416.781 204.480
Community development 791,393 635,899 155,494 Engineering 3,538,175 3,472,690 65,485 Planning 2,172,886 1,984,123 188,763 Building inspection 835,998 784,966 51,032 Other 5,572 3,448 2.124
Public safety:
Community development:
Total community
Culture and recreation:
development 7.344.024 6,881,126 462.898
Library 2,315,992 2,316,540 ( 548 1 Parks and recreation 3,830,710 3,696,115 134,595 Cultural arts 251.525 247.468 4,057
Total culture and recreat ion 6.398.227 6.260.123 138.104
Maintenance and utilities: Street maintenance 1,947,852 1,799,979 147,873 Facilities maintenance 1,268,400 1,235,668 32,732 Traffic signal maintenance 340,525 279,309 61,216 Adm in i s t rat ion 349,944 312,108 37,836 Street lighting 28.000 28,000 -
Total maintenance and utilities 3.934.721 3.655.064 279,657
Total expenditures $40.046.299 37.382.261 2 ~ 664.038
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SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues whose expenditures i legally restricted to specified pxposes.
Civic Arts Prowam
To account for transfers from the General Fund to support the civic arts program.
Community Develo~ment Block Grant
To account for federal block grants for commercial and residential loans for commun. development.
Federal Grants
To account for federal grants received to support the City's Library Programs and Histoi Preservation.
Gas Tax
To account for receipts and expenditures of money apportioned under Streets and Highwa
Code of the state of California.
Librarv 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 for designatc low and moderate income housing.
Mortgage Revenue Bonds
To account for money available to the City for expenditures incurred due to Mortgag Revenue Bonds. Fund closed to General Fund during year.
Police Asset Forfeiture
To account for money received under federal and state programs distributing propert.
confiscated from illegal activities.
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Section 8 Housing Authoritv
To account for federal grants for low and moderate income housing supplemental paymei
Senior Nutrition
To account for money received and expenditures for senior programs under the (
Americans Act.
Special Benefit Districts
To account for revenues and expenditures from property tax assessments for street lig and landscaping.
State Grants
To account for state of California Library and Civic Arts grants.
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30, 1993
community Library Lor
Civic Development Audio- Moc
Arts Block Federal Gas Visual In
Insurance AoU Proeram Grant Grants Tax
Assets
Cash and investments $304,109 60,472 21,880 3,042,463 117,705 2,30
Receivables: - 10 Loan - 12,477 - -
1 Taxes 0 -
Accounts, net - - P .. -
Accrued Interest 4,726 - 340 47,094 1,829 3
- - m
Due from other governments - - - e -
Prepaid expenditures - - - - - --
Total assets 3308.835 72.949 22.2203.089.557UM
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 14 - 799 12,345 894
Accrued wages payable - - 1,182 e -
Due to other governments - - - - -
Due to other funds - - - - - --
1.981 12.345 894 - Total liabilities 14 -
Fund balances:
Reserved for prepaid
Reserved for loans receivable - 12,477 -
Reserved for low and
Reserved for encumbrances 119,125 - 1,137 805,953 101 l!
expenditures - - - - - - - 10;
moderate income housing - - - - - 2,31!
Unreserved:
Designated for approved
Designated for continuing
Undesignated 68.296 60.472 I25.578) 1,871,259 118,539 -
Total fund balances 308,821 72,949 20,239 3,077,212 118,640 2.441
capital projects 121,400 - - - -
appropriations - - 44,680 400,000 -
Total liabilities and fund
balances s308.835 72.949 22.2203.089.557119.5342.449
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Police Section 8 Special
Asset Housing Senior Benefit State
Forfeiture Authori tv Nut r i t ion D i s t r i ct 8 Grants Totals
1 , 940,656 144,898 - 1,471 s 931 274,135 9,679,325
- a - - - 114,864 - - - 18,411 - 28,640 - 27 s 361 166 - - 27 , 527
30,157 - - 22 , 902 4,301 146,866 - 30,320 28,530 - 2,600 61,450
194.372 - 194.372 - - -
1,970.813 396,951 28.696 1.513.244 281,036 10,253.044
37,702 47,826 13,867 71,055 11,314 195,943
4,230 14,793 1,335 41,157 - 70,723 - - 830
215.019 13.494 - - 228.513
41,932 278.468 28.696 112.212 11.314 496,009
- 830 - -
- 194,372 - - - 194,372 - - - - - 114,864
- - - - - 2,319,379
1,681 - - 31,372 21,615 1,000,274
1 - - - - - 121,400
153,444 - - - 433 598,557
1.773.756 175.889) - 1.369.660 247,674 5,408.189
1,928,881 118.483 - 1,401,032 269.722 9,757,035
1.970.813 396.951 28.696 1.513.244281.036 lL253.044
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CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1993
Community Library Low
Civic Development Audio- Mode
Proaraq Grant Grants Tax Insurance s Arts Block Federal Gas Visual Inc
Revenues :
Taxes $- - - 1,094,331 - 33c
Intergovernmental - - 60,868 - -
Charges for services e - - - 75,641
Interest income 16,999 6,224 849 175,058 6,237 12!
25.000 2 Miscellaneous - - -
Total revenues 16.999 6.224 61.717 1,294.389 81,878 460
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Expenditures:
Current : - 81 General government - - - -
Public works s - - 220,477 -
Welfare - 1,086 - - -
Culture and recreation 15,740 - 78,366 - 49,411
I - 3.425 - - Capital out lay .i
Total expenditures 15,740 1.086 79.366 223,902 49.411 81
Excess (deficiency) of
revenues over (under)
expenditures 1.259 5.138 (17.649) 1.070.487 32.467 379
Other financing sources (uses): - - - Operating transfers in 3,170 -
Grant payment - (507,451) - - -
Administrative fee received - - - 36, from bond refunding - -
Total other financing - - 36, sources (uses) 3.170 /507,451) -
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses 4,429 (502,313) (17,649) 1,070,487 32,467 415,
Fund balances at beginning of
year, as restated 304,392 575,262 37,888 2,006,725 86,173 2,025,.
Residual equity transfers out - - - - - -
Fund balances at end of year 5308.821- 20.2393.077.212118,6402.441.(
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Mort gage Pol ice Section 8 Special
Revenue Asset Housing Senior Benefit State
Bonds Forfeiture Authoritv Nutrition Districts Grants Totals
- - - - - - 1,424,846
199,042 3,326,055 - 527,478 2,432,797 105 , 870 -
1,651,524 - 104,607 7.170 - 83 , 749 14,200 540,808 - - 70,764 74.533 31,550 - 206.226
- 632,085 2,510,731 180,403 1.691.182 213,242 7.149.459
- 1,575,883 - - - -
- 392,997 - - - - 474,434 - - - - 1,562,647 - 1,783,124
2 , 711,467 - - 2,529,978 180.403 - - - - - - - 303,800 448,317 - - - - 3.425
- 392.997 2.529.978 180.403 1.562.647 303.800 5.420.767
- -
- 239,088 (19.247) - 128.535 190.558) 1.728.692
- - - - 3,170 - -
- - - - - - (507,451)
- - - - 36.616 - -
- - - - - - (467.665)
- 239,088 (19,247) - 128,535 (90,558) 1,261,027
53,500 1,689,793 137,730 - 1,272,497 360,280 8,549,508
W) - - - - - (53.500)
-1.928.881 - 118.483 -r.401.032-9.757.035 -
79
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
Year Ended June 30, 1993
Civic Arts Program Comunitv Develoument Block G
Actual on Variance- Actual on Varian
Budgetary Favorable Budgetary Favora
Budget Basis IUnfavorablel Budaet Basis JUnfavor
Revenues :
Taxes $- - - - D -
Intergovernmental -
Charges for services - -
Interest income -
Miscellaneous -
- - 78,000 0 (78.0
16,999 16 9 999 - 6,224 6,2
- - - -
- - - - -
Total revenue - 16.999 16,999 78,000 6.224 (71.7
Expenditures:
Current : - - - - - General government -
Public works -
Welfare - - - - 1,086 (1,or
Culture and recreation 255,141 134,865 120,276
- - - - -
- - - - - - - Capital outlay - -
Total expenditures 255.141 134.865 120,276 - 1.086 t 1 .or
Excess (deficiency) of
revenues over (under)
expenditures $(255.141)1117.866) 137.275 '28.ooo LJa u
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1 1122.655) 163.466) 59.189 1505.246)(135.466) 369.780
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Federal Grants Gas Tax
Actual on Variance- Actual on Variance-
Budgetary Favorable Budgetary Favorable
Budpet Basis j Un f avorab 1 e 1 Budeet Basis JUnfavorablel
- - - 875,000 1,094,331 219,331 - 60,868 60,868 - - -
- 849 849 50.000 175,058 125,058 - - - - 25,000 25.000
- 61.717 41,717 925.000 1.294.389 369,389
- - 0 - - -
- - - - - - - - - 1,426,821 1,426,430 391 - - - - - -
122 , 655 125,183 (2 , 528) - - - - - - 3.425 3.425 -
122.655 125,183 12,528) 1,430,246 1,429,855 391
81
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1993
Library Audio-visual Insurance Low and Moderate Income Hou
Actual on Vaaiance- Actual on Varian
Budgetary Favor ab 1 e Budgetary Favora
Budeet Basis (Unfavorable) Budget Basis JUnfavor
Revenues :
Taxes $- - s 400,000 330,515 (69.4
Intergovernmental - -
Charges for services 60,000 75,641 15,641 - - -
Miscellaneous -- - - - 4,379 4.3'
- - - -
Interest income 1,000 6,237 5,237 100,000 125,715 25,7 -
Total revenues 61.000 81.878 20,878 500.000 460.609 (39.3'
Expenditures:
Current :
General government - - - I26 , 925 100,727 26, I! Public works -
Welfare P
Culture and recreation 66,452 49,512 16,940 e e -
Capital outlay -- -
Total expenditures 66.452 49.512 16.940 126.925 100 q 727 26,14
- - - - -
D - - - -
- - - - -- - -
Excess (deficiency) of
revenues over (under)
expenditures sku) 32.366 iuui 373.075 359.882 (U
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Police Asset Forfeiture Section 8 Housina Authoritv
Actual on Variance- Actual on Variance-
Budgetary Favorable Budgetary Favorable
Budget Basis I Un f avorabl e I Budget Basis (Unfavorable)
- - - - - -
200,000 527,478 327,478 2,556,821 2,432,797 (124,024) - - - - - -
10,000 104,607 94,607 8,000 7,170 (830) - - - - - 70,764 70,764
210.000 632,085 422.085 2.564.821 2,510,731 154,090)
548,122 548,122 - - - - - - - - - - - - - 2,611,894 2,529,978 81,916 - - - - - - - - - - - - 1 548.122 548.122 - 2.611.894 2.529.978 81,916
c338.122) 83.963 422.085 (47.0731119.2471 27.826
a
83
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1993
Senior Nutrition Special Benefit Districts
Actual on Variance- Actual OR Varii
Budgetary Favorable Budgetary Favor;
Budget Basis (Unfavorablel Budnet Basis JUnfavol
Revenues :
Taxes $- - - - - -
Intergovernmental 103,000 105,870 2,870 - - -
Interest income - - - 8,300 83,749 75.d
Mi scel laneous 75.000 74.533 (467) 1,000 31.550 30..
Total revenues 178.000 180.403 2.403 1.624.286 1.691.182 66.1
Charges for services - L - 1,614,986 1,575,883 (39,
Expenditures:
Current: - - - - General government - -
Welfare 180,967 180,403 564 - - -
Culture and recreation -
Capital outlay - -
Public works - - - 2,033,901 1,594,019 439,E
- - - - - - - - - -
Total expenditures 180.967 180.403 564 2,033.901 1,594,019 439.E
Excess (deficiency) of
revenues over (under)
expenditures LU!a(2.967) - - 2961 (409.615197.163 SLJ
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State Grants Totals
Actual on Variance- Actual on Variance-
Budgetary Favorable Budgetary Favorable
Budnet Basis 1Unfavorablel Budnet Basis JUnfavorablel
- - - 1,275,000 1,424,846 149,846
150,000 199,042 49,042 3,087,821 3,326,055 238,234 - - - 1,674,986 1,651,524 (23,462)
1,400 14,200 12,800 178,700 540,808 362,108
76 .OOO 206,226 130,226
151.400 213.242 61.842 6,292.507 7.149.459 856,952
- - -
- - - 675,047 648,849 26,198 - - - 3,460,722 3,020,449 440,273 - - - 2,792,861 2,711,467 81,394
336,814 325,848 10,966 781,062 635,408 145,654 - - - 3,425 3.425 -
693.519 1 336.814 325,848 10.966 7.713.117 7,019.598
1185.414) 4=Eu&) 72.808 ~1.420.610) 129,861 1.550.471
e
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DEBT SERVICE FUNDS
Debt Service Funds are used to account for accumulation of resources for, and paymei principal and interest on the City's general bonded debt and special assessment bond
which the City is obligated in some manner.
Buildin? Authority
To account foi receipts by the Building Authority from the General Fund for the Building Authority Revenue Bonds. Bonds were issued to construct City Hall. Durir year, bonds were paid in full and fund closed to General Fund.
Collesre Boulevard
To accumulate property assessments levied for payment of debt service on 1986 C1 Boulevard Assessment District Bonds.
HOSD Grove COPS
To account for payment of debt service on the 1988 Certificates of Participation issi purchase Hosp Grove.
N .
I Parking Aut hori tv
I To account for receipts received by the Parking Authority from the General FU payment of debt service on 1969 and 1981 Parking Authority Revenue Bonds.
RedeveloDment Bonds
To account for payment of debt service on 1988 Tax Allocation Bonds issued to f improvements for the Carlsbad Redevelopment Agency.
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CITY OF CARLSBAD
Debt Service Funds
Combining Balance Sheet
June 30, 1993
Hosp
College Grove Parking Redevelopment
Boulevard COPS Author i t y Bonds Totals
Assets
Cash and investments $1,276,495 876 I 096 588 I 939 1,739,951 4,481,481
Receivables:
Taxes 11,221 - - 40,916 52,137
Special assessments 7,290,000 - - - 7,290,000
Accrued interest 19,837 29.980 11.314 6.905 68.036
Total assets $8.597.5u906.076600.253 1.787.772-
Liabilities and Fund Balances
Liabilities:
Deferred revenue $7,290,000 - - 7,29 0,000 - -
Total liabilities 7,290 .ON - - - 7.290.000
Fund balances:
Reserved for debt service 1,307,553 903,451 600,253 1,787,772 4,599,029
Unreserved:
Designated for arbitrage - 2.625- - - 2.625
Total fund balances 1.307.553 906.076 600.253 1.787.772 4.601.654
Total liabilities and fund
balances $8.597.553906.076600.253 1.787.77211.891.654
88
CITY OF CARLSBAD
Debt Service Funds
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Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1993
Aosp
Building College Grove Parking Redevelopment
Authoritv Boulevard COPS Authoritv Bonds -
Taxes $- 422,490 - - 1,322,061 I
Interest income 1,819 98.360 74.977 41.792 121.515 - I Total revenues 1,819 520,850 74,977 41,792 1,443,576 1
Revenues :
Expend i t ur es :
Debt service:
Principal retirement 35,000 885,000 260, OOO 175,000 290,000 I
Interest and fiscal charges 5,920 673,403 637,248 108,398 1,329,644 2
State mandated payment - - - - 257.278 -
40.920 1.558.403 897.248 283.398 1.876.922 2 Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures (39.101) 11.037.553) 1822,271) (241.606) (433.346) L
Other financing sources (uses):
Operating transfers in e 1,016,514 735,051 130,500 464,061
- - Operating transfers out - - (76) -
Total other financing 1 sources (uses) - 1.016.514 734.975 130.500 464,061 -
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses (39,101) (21,039) (87,296) (111,106) 30,715
Fund balances at beginning
of year 113,647 1,328,592 993,372 711,359 1,757,057
- - - ~- Residual equity transfers out (74.546) -
Fund balances at end of year s1.307.553906.076600.253 1.787.772=
-
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CITY OF CARLSBAD Redevelopment Bonds Fund
Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30, 1993
Actual on Variance- Budgetary Favorab 1 e Budget Bas is (Un f avo r ab 1 c
Taxes $1,600,000 1,322,061 (277,939) Interest income 60.000 121,515 61.515
Revenues :
Total revenues 1.660.000 1.443.576 (216.424)
Expenditures: Debt service: - Principal retirement 290,000 296 9 000
Interest and fiscal charges 847,939 1,329,644 (481 7 705)
Total expenditures 1.395.217 1.876.922 (481.705)
Excess (deficiency) of revenues over (under)
State mandated payment 257.278 257.278 -
expenditures LTL-aJa 1433.346) (698.129)
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CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the purchase or construction of major capi facilities which are not financed by Proprietary or Trust Funds.
Assessment Districts
TO account for capital projects financed by the issuance of assessment district bonds,
CaDi t a1 Construction
To account for transfers from the General Fund for various municipal capital projects.
Community DeveloDment Block Grants
To account for federal block grants for community development.
Community Facilities District
To account for capital projects financed by Community Facility District (Mello-Roo funding .
County Airport Road Proiect
To account for receipt of San Diego County funds for improvements adjacent McClellan-Palomar Airport.
Palomar Aimrt Road East Proiect
To account for funding and expenditures related to construction of Palomar Airport Road E El Camino Real and east to San Marcos city limits. Funding is provided by the cities of Sa Marcos and Vista, San Diego County Airport, Sales TadTransNet, Traffic Impact fees, an direct developer contributions.
Park DeveloDment
TO account for receipts of fees charged to developers for park acquisition and development.
Planned Local Drainage Facilities
To account for receipts of fees charged to developers for drainage facilities necessitated b
growth.
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Public Facilities Construction
To account for receipts. of fees charged to developers for specific capital projects necessitated by growth.
Redevelopment Agency
To account for financial public property located in resources segregated for the rehabilitation of commercial and the Carlsbad Village area.
Redevelopment Area II
To account for the costs of a feasibility study on establishing a second redevelopment area.
Redevelopment Bond Proiect
To account for capital projects financed by 1988 Carlsbad Redevelopment Allocation Bonds.
Sales Tax/TransNet
Agency Tax
To account for receipts of County sales taxes allocated by the San Diego County Regional Transportation Commission to finance transportation projects.
State Grants
To account for capital projects financed by state grants including Local Transportation Funds and Carlsbad Boulevard Shore Protection.
Traffic Impact Proiects
To account for receipts of fees charged to developers for street construction and improvement.
93
CITY OF CARLSBAD
Cap i t a 1 Projects Funds
Combining Balance Sheet
June 30, 1993
Community
Assessment Capital Developmen Districts Construction Block Gran. Assets
Cash and investments $1 , 726 , 084 2,913,908 - Receivables: Taxes -
Accounts, net - 40 , 000 - Accrued interest 11,523 - - Due from other governments -
Advances to other funds - 1.700.000 -
- -
70 , 908 -
$1.737.607 4.653.90Q 70.908 Total assets
Liabilities and Fund Balances
Liabilities:
Account s payab 1 e $ 10,661 68 > 798 55,642 Accrued wages payable - - 1,611 Due to other funds - - 13 , 655 Deposits payable - -
Advances from other funds - -
Deferred revenue - -
- - -
68.798 70,908 Tot a 1 1 i ab i 1 i t i e s 10.661
Fund balances (deficit):
Reserved for advances to other funds - 1 , 700 , 000 -
projects 1 , 385 , 380 1,672,845 -
Total fund balances (deficit) 1.726.946 4.585.102 -
balances $1.737.607 4.653.900 70.908
Reserved for encumbrances 112 , 067 43 , 986 92 , 786 Unreserved: Designated for approved capital
Undesignated 229.499 1,168,271 f 92.786)
Total liabilities and fund
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Pa 1 omar
County Airport Planned
Community Airport Road Loca 1 Pub1 ic
Facilities Road East Park Drainage Faci 1 i t ie District Project Project DeveloDment Facilities Constructi
8,324,092 1,015,666 1,299,063 2,962,514 2,843,076 8,896,337
- - - - 6,780 - - - - - - -
129,374 15,783 20 9 187 46,037 44,180 138,275 - - - - - - - - - - - -
8 z 460 246 -1.319.250 3.008.551 2.887.256 9 -034.612
167,803 - 367,374 - 543,226 -
841,067 -
- - - - - - - - - - - - - - - - - - - 2,550,000 300,000 950,000
1.208.441 - 543,226 2.550.000 300.000 1,117,803
- - - - - -
- - - - - - I 849,775 - 4,537,436 - - 490,236
4,810,255 399,773 - - 1,119,959 4,485,819 1 .S91,775 631,676 (3.761.412) 458.551 1.467.297 2,940.754
7,251.805 1.031.449 776,024 458.551 2,587.256 7.916.809
8- 1.031. 449 =lJB&ZS 3.008.551 2.887.256 9.034.612
95
CITY OF CARLSBAD Capital Projects Funds
Combining Balance Sheet
June 30, 1993
Redeve 1 opmen t Redeve 1 opmen t Redeve 1 opm Anencv Area I1 Bond Proie
Assets
$ 67,520 16,529 2,769,ll Cash and investments Rete ivab 1 es : - e a - - Taxes Accounts, net Accrued interest
e 5,615 257 - - - L Due from other governments
Advances to other funds - - -
Total assets $LLzLu 16.786 2.769.11
Liabilities and Fund Balances
Liabilities: Account s payab 1 e $ 8,361 - 26,86
Deposits payable -
- - Accrued wages payable 13,547
Due to other funds
Advances from other funds 7,924,846
Deferred revenue
- - - - - 30,000 - - - -
Total liabilities 7.946.754 30.000 26.86
Fund balances (deficit): Reserved for advances to other funds
Reserved for encumbrances Unreserved:
- - -
45,833 11,502 146,40
Designated for approved capital
Undesignated (7,919.452) (24.716)
projects - - 2,459,37
136.47
Total fund balances (deficit) (7.873.619) (13,214) 2.742.25
Total liabilities and fund balances - 16.786 2.769.11
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Traffic Sales Tax/ State Impact Transne t Grants Proi ect s Totals
1,740,158 217,249 2,732,409 37,523,712
- - - 6,780 - - - 40,000
27,463 3,376 42,461 484,531 - - - 70,908 - 1.700.000
1.767.621 229.625 2.774.870 39.825.931.
677 1,022 66,023 1,316,448
15,158 - - - 13,655 - - - 841,067 - - 750,000 12,504,846 - 78.316 20.400 98,716
677 79.338 836.423 14,789.890
- - -
- 1,700,000
91,852 10,223 47,287 6,479,392
- -
1 , 434,681 131 , 064 1,891,160 19,790,307 240.41 1 - - (2.933.658)
1,766,944 141.287 1,938.447 25,036,041
I 1.767.621 220.625 2,77 4.870 39.825.931
97
CITY OF CARLSBAD Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1993
Community
Assessment Capital Development Districts Construction Block Grant Revenues : - - - - - 266,250 Taxes $
Charges for services -
Interest income 45,675 - -
Contributions from property owners 104,077 162,554 -
Intergovernmental - -
Mi sce 1 1 aneous 11 -233 39.887 1.697
Total revenues 160.985 202.441 267.947
Expenditures: Current:
Capital outlay 145,023
199.427 472.029 122.924
Total expenditures 199.427 472.029 267.947
Excess (deficiency) sf revenues over (under)
General government - -
expenditures (38.442) (269.588) -
Other financing sources (uses): - - Operating transfers in s, 175,000 Operating transfers out (1,016.514) (3.170)
Total other financing
Excess (deficiency) of of revenues and other financing sources over (under) expenditures and other financing
sources (uses) (1.016.514) 171.830 -
source s (1,054,956) (97,758) -
beginning of year, as restated 3,959,283 4,682 , 860 -
Residual equity transfers in 10 , 979 - -
Residual equity transfers out (1,188,360) - -
Fund balances (deficit) at
Fund balances (deficit) at end
of year $1.7 26 - 946 4.585, 102 -
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Pal omar County Ai rpor t P1 armed
Community Airport Road Local Pub 1
Facilities Road East Park Drainage Faci 1 i
District Proiect Pro i ect DeveloDment Facilities Construc
1,812,440 - - - - - - 165,375 1,040,186 - - -
688,887 - - 68,456 4,063 387, 492 9 260 51,763 53,071 182,102 160,473 498 7 - - 113,758 - - -
2.993.587 217.138 1.207.015 250.558 164.536 885 %
- - - - - -
- - - - 168,920 -
2,296.413 - 1.882.027 - - 1.549,
2.465.333 - 1 ,882,027 - - 1.549,
a
528.254 217.138 (675.012) 250.558 164,536 ( 663,
- - 1,451,036 - - - - (117) - - -
- (117) 1,451.036 - -
528,254 217,021 776 7 024 250,558 164,536 (663
6,723,551 814,428 - 207,993 2,422,720 8,580
- - - - -
- - - - -
7.251.805 1.03 1.449 776.02 4 458.551 2.587.256 7.916
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CITY OF UBAD Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, (Continued)
Year Ended June 30, 1993
Redevelopment Redevelopment Redevelopme
Agency Area I1 Bond Proiec
Revenues :
Taxes Intergovernmental
Interest income 24,546 770 84,974
- - - - 29,800 -
Charges for services 750 -
Contributions from property owners -
Miscellaneous 14.795 -
$
-
- - -
Total revenues 69.891 770 84,974
Expenditures: Current:
Capital out lay 68,681 0 163.179
753,104 15,985 - General government
Total expenditures 821.785 15.985 163,179
Excess (deficiency) of revenues over (under)
expenditures (751.894) (15.215) (78.205)
Other financing sources (uses): - - Operating transfers in - - Operating transfers out (464,061 ) -
sources (uses) (464.061 ) - Total other financing
Excess (deficiency) of
-
revenues and other financing sources over
and other financing uses (1,215,955) (15,215) (78,205)
(under) expenditures
Fund balances (deficit) at
beginning of year, as restated (6,657,664) 2,001 2,820,459 - - Residual equity transfers in -
Residual equity transfers out - - -
Fund balances (deficit) at end
of year $(7.873.619) c13.214) 2.742.254
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Traffic
Impact Totals Sales Tax/ State TransNe t Grants Pro iect s
- - - 1,812,440
2,170,000 109,643 - 3 , 781,254 - - 89,273 1 , 238,538
130,638 13,120 155,205 1,893,431 - - - 380,389 - - - 67.612 1 2.300.638 122,763 244.478 9.173.664
- - - 1,083,032
155.278 68.159 214,076 7.192.002 1 155.278 68.159 214.076 8.275.034
2.145.360 54,604 30.402 898,630
- - - 1,626 , 036
(1,351.057) - (99.862) (2.934.781)
(1.351.057) - (99,862) (1,308.745)
I 794,303 54,604 (69,460) (410,llS)
972,641 105,566 2 , 007,907 26,642,420
- - - 10,979 I - (18.883 ) - (1.207.243)
I 1,766,9 44 141.287 1.938.447 35.036.041
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ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operatec manner similar to private business enterprises - where the intent of the governing bo that the costs of providing goods or services to the general public be financed or reco 1 primarily through user charges.
Carlsbad MuniciDal Water District
To account for the operation, maintenance, planning, capital facility financing, a1 customer service functions of the Carlsbad water system.
Golf Course
To account for revenues, expenses and the construction activities of the City's pro municipal golf course.
Sewer
To account for the operation, maintenance and capital facility financing of the City's 1 system .
8 Solid Waste
To account for revenues and expenses of the City's solid waste source-reductio recycling programs. I
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CITY OF CARLSBAD Enterprise Funds
Combining Balance Sheet
June 30, 1993
Car 1 sbad Municipal Water District Golf Course Sewer Solid Waste 3 Assets
Current assets: Cash and investments $16,232,546 1,883,459 15,399,831 60,138 33, Receivables:
2,
10.567 __
Total current assets 19,298.821 1,912.728 15.854.396 61.073 37.
Taxes 11,640 - - - Accounts, net 2,574,530 - - - Accrued interest 261,076 29 , 269 239 , 341 935 - 204,657 Due from other funds - - Inventory 219,029 - -
5, 6.938 -
Total restricted assets 2,302.763 - 3,105.907 - 5.
Less accumulated depreciation 1 10.490.606) - 19.860.438) - (20.
- 3,098,969 - Restricted assets : Cash and investments 2,302,763 Accrued interest - - -
Property, plant and equipment 58,860,918 789,758 61,052,192 1,639 120,
Property, plant and equipment, net 48.370.312 789.758 51,191,754 1.639 100.:
Total assets &iuad%--~u
Liabilities and Fund Equity
Current liabilities: Accounts payable $ 1,142,419 25 111,947 1,310 1,; Accrued wages payable 267,161 - 42,429 1,260 Due to other funds 204,657 - - - 1
Current portion of long-term debt 730 , 000 - 274,630 - 1.( Deposits payable 126.999 - 145,609 51 2
Total current liabilities 2,471,236 25 574.615 2.621 3,o
Current liabilities payable from restricted assets - accrued 351.855 - - 4
Deferred revenue - - 2,070,778 - 2.0
unamortized issuance costs of $320,521 10,319,479 -
of unamortized discount of $385,725 - - 12,029.445 - 12,o
interest payable 134,965 -
Certificates of participation, net of
Installment purchase agreement, net - - 10.3
Total liabilities 12.925.680 25 15,026.693 2.621 27.9'
Contributed capital 40,169,911 2,425,190 37,033,065 - 79,6: Retained earnings: Reserved for debt service 559,726 - 2,479,422 - 3,O: 8' Reserved for rate stabilization 878,072 - - - Unreserved 15.438.507 277.271 15.612.877 60,091 31.31
Total fund equity 57.046.216 2.702.461 55,125.364 60.091 114.9:
Total liabilities and
Fund equity:
fund equity $69,971,896m-62.712142.88
104
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings
Year Ended June 30, 1993
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Carlsbad
Mun i c i pal
Water District Golf Course Sewer Solid Waste 2
9,
4,
Operating revenues: Water sales $ 9,844,421 - - -
Sewer services charges - - 4,382,889 -
Other charges for services 353,864 - 61,473 67,558
Contributions from other government 75,794 - - - agencies - 38.275 -
Total operating revenues 10.427.476 - 4,482,637 67.558 14.
Miscellaneous 153.397 -
Operating expenses:
1, Plant operat ions
Depreciation and amortization 1,102,100 - lI152,7Oo - 2,
-
69 - I 1,608,483 I
Purchased water 6,137,022 - -
General and administrative 4.182.449 - 1.260.985 153.722 5.
Total operating expenses 11,421,571 - 4.022.168 153,722 15.
Operating income (loss) ( 994.095) - 460.469 j86.164) _I
Nonoperating revenues (expenses):
Interest income 1,067,358 87,369 930,598 830 2
(1 Interest expense and fees (855,595) - (851,292) -
Gain (loss) on sale of property 14,789 - (6,223) -
Property taxes 758,231 - - -
Miscellaneous income (expense) - - - 58,524
Amortization of issuance costs f26.710) - f17.533) - -
Total nonoperating revenues
(expenses) 958.073 87,369 55.550 59.354 _I
Net income (loss) (36,022) 87,369 516,019 (26,810)
Retained earnings at beginning of year 16,935,827 189,902 17,608,779 86,901 34
Residual equity transfers out f23.500) - f32.499) - -
Retained earnings at end of year $16.876.305 2.zLZLl-mg
1 10 5
CITY OF CARLSBAD Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 1993
Car lsbad Municipal Water District Golf Course Sewer Solid Waste 2
Operating income ( fass) $ (994,095) - 460,469 (86,164) (I
Cash flows from operating activities:
Adjustments to reconcile operat irng income (loss) to net cash provided by operating activities:
2,. (
Depreciation and amortization 1,102,100 - 1,152,700 - Decrease in receivables (335,066) - - -
and due to/due from other funds 29,874 - (29,874) - Decrease in due from other governments - - - - Increase in inventory 210,885 - 3,028 - Increase (decrease) in deposits payable (8,045) - 41,709 -
Increase (decrease) in advances
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Increase (decrease) in accounts
Increase in accrued wages payable 18.628 - 6.357 1.260 -
operating activities 458.945 1478) 1.544.993 f95.222) 1.9
payable 434,664 (478) (89,396) (10,318)
Bet cash provided by (used in)
Cash flows from noncapital financing activities: Transfer to other funds 123.500) - ( 32,499) - A
financing activities;
(6 Principal payment on bonds (685,000) - - -
Interest and other fees paid on bonds (857,365) - (1,254,550) - (2,1 Property taxes received 758,231 - - -
Cash flows from capital and related
Purchases of property, plant and equipment (2,011,405) (11,647) (942,263) (1,639) (2,9
7 Capital contributions received 534.887 565.200 287.451 58.524 1,4
Net cash provided by (used in) capital and related financing activities 12.260.652) 553,553 (1.909.362) 56.885 /3.5!
Cash flows from investing activities: Investments in restricted assets 139,453 - 1,042,983 - 1,1! Interest on investments 1.147.086 78.366 925,272 2.798 2.1!
investing activities 1,286,539 78,366 1,968,255 2.798 3.3:
Net increase (decrease) in cash and cash equivalents (538,668) 631,441 1,571,387 (35,539) 1,6:
Cash and cash equivalents at beginning of year 16.771.214 1.252.018 13,828.444 95,677 31.94
Cash and cash equivalents at end of year WM 1.88- 15.399.831 60.138 u
Supplemental schedule of noncash investing and financing activities - capital assets contributed by
Net cash provided by
contractors - - 1.774.2a -.-...-u -
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INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provic one department or agency of a government to other departments or agencies on E reimbursement basis.
Data Processing
To account for charges to other funds for data processing services.
Fleet Management
To account for charges to other funds to provide fleet maintenance and accumulate fun
fleet replacement.
General Liability Self-Insurance
To account for charges to other funds to insure for liability claims against the City.
Health Insurance
To account for charges to other funds and from employees to provide health insuranc I full-time City employees.
Workers' ComDensation
To account for charges to other funds to insure against Workers' Compensation claims.
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CITY OF CARLSBAD
Internal Service Funds
Combining Balance Sheet
June 30, 1993
General
Liability
Data Fleet Self Health Workers '
Processing Management Insurance Insurance Compensation 3
Assets
Current assets:
Cash and investments $ 544,198 3,028,675 2,788,784 1,731,019 2,293,294 10,:
Receivables: - - - Accounts, net - 6 p 601
Accrued interest 8,457 47 s 067 43,337 26,894 35,638
- Inventory - 97.061 - - -
Total current assets 552.651 3. 179.404 2.832.121 1.757.913 2.328.932 10.r
Property, plant and equipment: - 5,2 m Equipment and vehicles 876,354 4,364,083 - -
Less accumulated depreciation 1343,165) (2.139.066) - - -
let Property, plant and
equipment 533,189 2,225,017 - - - 2.i
Total assets $1.085.8445.404.4212.832.1211.757.913 2.328.932 u
Liabilities and Fund Equitv
Current liabilities:
Accounts payable $ 11,234 177,642 69,733 38,518 367 2 - - - Accrued wages payable 22,694 22,984
Estimated claims payable - - 871.157 333,000 1,008.267 2.2
Total current liabilities 33,928 200. 626 940.890 371.518 1,008.634 2.5
Fund equity:
Contributed capital -
contributed from other funds 616,242 2,945,698 1,910,000 - 1,000,000 6,4
Retained earnings - unreserved 435,674 2.258.097 (18,769) 1,386,395 320.298 4,3
Total fund equity 1.051.916 5.203.795 1,891.231 1,386.395 1,320.298 10.8
Total liabilities and
fund equity g1.085.8445.404.4212.832.1211.757.913 2.328.932 u
10 8
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 1993
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General
Liability
Data Fleet Self Health Workers I
Processina Mananement Insurance Insurance Compensation
Operating revenues:
Charges for services $ 453,742 2,172,405 824,230 1,478,087 623,014
Miscellaneous 16.310 77.742 5.118 325.767 49.652
Total operating revenues 470.052 2.250.147 829.348 1,803,854 672.666
Operating expenses:
Depreciation 86,885 446,511 - - -
Fuel and supplies - 457,019 - - -
Claims expense - - 1,134,082 1,824,547 639,500 General and administrative 579.603 792,743 - - -
Total operating expenses 666.488 1.696.273 1,134,082 1,824,547 639.500
Operating income (loss) (196-436) 553.8 74 130 4,734) (20.693) 33.166
Nonoperating revenues (expenses):
Interest income 30,412 163,549 144,520 101,846 103,365 Gain (loss) on sale of property 12.512) 114.834) - - -
Total non-operating revenues 27.90Q 148.715 144.520 101.846 103 365
136,531 Bet income (loss) (168,536) 702,589 (160,214) 81,153
Retained earnings at
beginning of year 604.210 1.555.508 141.445 1,305,242 183.767
Retained earnings (deficit) at
end of year $-2.258.09701.386.395 320.298
109
CITY OF CARCSBAD
Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30, 1993
General
Liability
Processing Management Insurance Insurance Compensation - Data Fleet Self- Health Workers'
Cash flows from operating activities:
Operating income (loss) $(196,436) 553,874 (304,734) (20,693) 33,166
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 86,885 446,511 e e -
(Increase) decrease in receivables - (184) - 29 -
Decrease in inventory - (15,430) - - -
Increase (decrease) in accounts
payable 8,035 117,840 114,011 (4,163) 207
Increase (decrease) in accrued
Increase (decrease) in estimated
wages payable 2,516 (3,315) - - -
claims payable - - 177.120 141.000 (344.398) -
Net cash provided by operating
act ivi t ies (99.000) 1.099.296 (13.603) 116.173 (311.025) -
Cash flows from capital and related
Purchases of property, plant and
financing activities:
(: equipment ( 14,072) (283,186) - - -
500.000 - Capital contributions received - 30.000 - -
Net cash provided by (used in)
capital and related financing
activities (14.072) 1253,186) - - 500,000 -
Cash flows from investing activities -
interest on investments 32.069 151.617 144.194 99,469 100.157 2
Net increase in cash and cash equivalents (81,003) 997,727 130,591 215,642 289,132 1,:
Cash and cash equivalents at beginning
of year 625.201 2.030.948 2,658,193 1,515,377 2.004.162 8,8
Cash and cash equivalents at end of
year $544.198 3.028.675 2.788.784 1.731.019 233?29 4u
Supplemental schedule of noncash
investing and financing activities -
capital assets contributed by other - -3 funds u- -
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GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets used in operations accounted for in governr
funds. General fixed assets include.al1 fixed assets not accounted for in an entei
internal service, or trust and agency fund.
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CITY OF CARLSBAD General Fixed Asset Account Group
Schedule of General Fixed Assets by Function
June 30, 1993
General Culture & Pub1 ic Pub1 ic
Government Recreation Safety Works Total
Land $1 ,142 9 921 21,912,577 2,150,407 740,763 25,946 9
Buildings 2,998,460 10,410,066 13,996,610 - 27,405,
Improvements 790,218 1,885,192 120,563 23,471 2,819,
Furniture and equipment 1,383,255 1,188,884 1,864,190 469,876 4,906,
Construction in progress - 1.939.831 489 - 1,940,
Total $6.314.854 37.336.550 18.132.259 1-23 4.11Q 63.017.
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AGENCY FUNDS
Agency Funds are used to account for assets held by a government for other governments or individuals.
Deferred Compensation
To account for employees' deposits in deferred compensation plans offered by the City.
Contractors' Deposits
To account for money deposited by contractors for designated future development.
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Miscellaneous Deposits
To account for money deposited with the City for various purposes.
Assessment Districts
To account for the debt service transactions on assessment district bonds for which thc is not obligated.
111
CITY OF CARCSBAD Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year Ended June 30, 1993
Balances at Balances at July 1. 1992 Additions Reductions June 30, 1993 Deferred cornensation: Assets :
Liabilities:
Deferred compensation investments $ 4.712.072 1.193.89Q - 5.905.967 - _5.905.967 Deferred compensation payable &afuuLua -
Contractors' dewsits: Assets :
Liabilities:
Cash and investments J1.828.5734ir.52Q~1.750.093
Deposits payable $ 1.8 28 ! 574 52.p70 (130.650) 4lla&?2
Miscellaneous dewsits: Assets: Cash and investments $ 7,887 I 994 31,662, I96 (32,614.226) 6,855,964
Total assets $- 4 31.67 4.732 132.615.692) 6.868.500
Accrued interest 1,466 12,536 fl.466) 12.536
Liabilities: Accounts payable $ 8,660 10,708 (17,321) 2,047 Deposits payable 6,069,308 16,830,279 (16,411,754 6,487,833
378,620
Due to other governments 1 , 731,492 - (1,731,4921 - Interest payable - 378,620 -
Total liabilities k7-809. 46Q 17.219.602 c18.160.567) 6.868.500
Assessment districts: Assets : Cash and investments $ 4,478,346 3,250,840 (3,556,003) 4,173,183 46.428 Accrued interest 49.187 46,443 f 49.2021
Total assets $ 4.527.4 &2%JB 13.605.205) 4.219.611-
Liabilities: Assessments payable $4.527.533 2.968. 429 13.276.351) &19,611
Totals - all agency funds: Assets: Cash and investments $14,114,913 34,960,556 (36,296,229) 12,779,240 Deferred compensation investments 4,712,077 1,193,890 - 5,905,967 Accrued interest 50.653 58.979 f 50.668) 58.964
Total assets $18 -877 - 4 43 36.213.425 136.346.892) 18.744.171
Liabilities: Accounts payable $ 8,660 10,708 (17,321) 2 , 047 Deposits payable 7,897,881 16,882,449 (16,542,404) 8,237,926 Deferred compensation payable 4,712,077 1,193,890 - 5 , 905,967 3,276 , 351) 4,219,611
378.620
Assessments payable 4,527,533 2,968,429
Interest payable - 378.620
21.434.096 121.567.568 ) 18.744.171
1,731,492) - - I Due to other governments 1,731,492 -
Total liabilities $18 2377.6 43
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CITY OF CARLSBAD General Fixed Assets Account Group
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Schedule of Changes in General Fixed Assets by Function
Year Ended June 30, 1993
General Fixed General Assets at Asset Func t ion July 1, 1992 Additions Deductions June 3C
General government $ 6,343,866 118,689 (147,700) 6,31
Culture and recreation 36,987,133 1,798,599 (1,449,182) 37,33
Public safety 18,493,586 405,143 (766,470) 18,13
Public works 1,211.619 31.572 (9.082) 1.23
Total $63.036.204 2.354.00312.372.434)63.01
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CITY OF CARLSBAD General Fixed Asset Account Group
Schedule of General Fixed Assets by Source
June 30, 1993
As of June 30, 1986 $27,136,537
Net additions subsequent to June 30, 1986: General fund 13,867,842 Comity Development Block Grants 1,932,027 Federal grants 460,587
State grants 683,065 Street lighting 8,612 Park development 6,010,631
9,840,154 Public facilities
Redevelopment 3.078.318
Total investments in general fixed assets $63.017.773
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ANNUAL DEBT SERVICE REOUIREMENTS
The following schedules present principal and interest debt service requirements fc City's debt.
117
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements
$1,535,000 - 1969 CARLSBAD PARKING AUTHORITY REVENUE BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Annual
1993-94 $11,200 8 y 000 19,200 100,000 119,200 1994-95 8 s 000 4 I 000 12,000 125,000 137,000
4.000 125.000 129,000 1995-96 4,000 0
Year October 1 Ami1 1 Interest October 1 Debt Servicc
Total $23.20Q 12.ooo 35.200 350.000 385.200
$1.169.000 - 1981 CARLSBAD PARKING AUTHORITY REVENUE BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Annual
Year Auaus t 1 February 1 Interest February 1 Deb t Se rvi ce
1993-94 $ 37,000 37,000 74,000 100,000 174,000 1994-95 33,000 33,000 66,000 100,000 166,000 1995-96 29,000 29,000 58,000 100,000 158,000
1997-98 21,000 21,000 42,000 125,000 167,000 1998-99 16,000 16,000 32,000 125,000 157,000 1999-00 11,000 11,000 22,000 125,000 147,000 2000-01 6.000 6.000 12.000 150.000 162,000
1996-97 25,000 25,000 50,000 100,000 150,000
Total $178. OOQ 178.ooo 356.ooo 925.ooo 1.281.ooo
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CITY OF CARLSBAD I
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I Total $4.892.863 4.892.8639.785.72611.185.ooo 20.970
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Schedule of Annual Debt Service Requirements, (Continued)
$12.000.000 - 1988 CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION TAX ALLOCATION BONDS
Fiscal Interest Due Interest Due Total Principal Due Total A
Year October 1 Ami1 1 Interest October 1 Debt S
1993-94 $ 415,414 415,414 830 , 828 305,000 1,135 1994-95 406,111 406,111 812,222 330,000 1,142 1995-96 395 , 799 395,799 791,598 355 , 000 1,146 1996-97 384,261 384 , 261 768 , 522 380,000 1,148 1997-98 371,531 371,531 743,062 405,000 1,148 1998-99 357,559 357,559 715,118 440,000 1,155 1999-2000 342,159 342,159 684,318 475,000 1,159 2000-01 325,296 325,296 650,592 510,000 1,160 2001-02 306,681 306,681 613,362 550 y 000 1,163 2002-03 286,332 286,332 572,664 595 y 000 1,167 2003-04 263,870 263 , 870 527,740 640,000 1,167 2004-05 239 , 550 239 , 550 479,100 690,000 1,169 2005-06 213,330 213 , 330 426,660 750,000 1,176 2006-07 184,830 184,830 369,660 810 , 000 1,179 2007-08 154 , 050 154,050 308,100 875,000 1,183 2008-09 119,925 119,925 239,850 945,000 1,184
1.105.000 1.191 2010-11 43.095 43.095 86.190 2009- 10 83 , 070 83,070 166,140 1,025,000 1 , 191
$9.570.250 - COLLEGE BOULEVARD ASSESSMENT DISTRICT BONDS
Fiscal Interest Due Interest Due Total Principal Due Total A Year September 2 March 2 Interest SeDtember 2 Debt S
1993-94 $ 298,686 287,956 586,642 290,000 876 1994-95 287,956 275,394 563,350 335,000 898 1995-96 275,394 261,714 537,108 360,000 897 1996-97 261,714 246,699 508,413 390,000 898
1998-99 230,230 212,485 442,715 455 , 000 897 1999-2000 212,485 192,932 405 , 417 495,000 900 2000-01 192,932 171,800 364,732 535,000 899
2002-03 148,600 123,400 272,000 630,000 902 2003-04 123,400 96 , 200 219,600 680,000 899
2004-05 96,200 66 , 600 162,800 740 , 000 902
2005-06 66,600 34 y 600 101,200 800,000 901 2006-07 34,600 - 34.600 865,000 899
Total $2.647.296 2.348.610 4.995 ~ 906 7.580.000 12.575
1997-98 246,699 230,230 476,929 425,000 901
2001-02 171,800 148,600 320,400 580,000 900
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CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements s (Continued)
$8,690.000 - 1988 HOSP GROVE CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total Annui Year Aunus t 1 February 1 Interest Au~us t 1 Debt Serv
1993-94 $ 299,324 298,730 590,054 275,000 865,051 1994-95 290,730 281,143 571,873 295,000 866,871 1 995- 96 281,143 270 7 590 551 9 733 315,000 866,73f 1996-97 270,590 259,205 529,795 330,000 859,792 1997-98 259 p 205 246,780 505,985 355 7 000 860,982 1998-99 246,780 233 3 100 479,880 38Q,000 859,88( 1999-2000 233,100 217,930 451,030 410,000 861,03( 2000-01 217 9 930 201,400 419,330 435,000 854,33( 2001-02 201,400 182,600 384,000 470,000 854,00( 2002-03 182,600 162 7 200 344,800 510,000 854,80[ 2003-04 162 s 200 140,000 302,200 555,000 857,20( 2004-05 140,000 116,000 256 9 000 600,000 856,00( 2005-06 116,000 90,400 206,400 640,000 846,40( 2006-07 90 7 400 62,600 153,000 695,000 848,00( 2007-08 62,600 36,600 99,200 750,000 849,20( 36.600 815,000 851.60( 2008-09 36 q 600 -
Total $3.0991602 2.791.278- 7.830.000 13.711.88(
$14.370.000 - 1988 CARLSBAD MUNICIPAL WATER DISTRI(TT CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total Annua Year November 1 Mav 1 Interest Mav 1 Debt Servi
1993-94 $ 399,348 399 9 348 798,696 730,000 1,528,696 1994-95 375,624 375,624 751,248 775,000 1,526,248 1995-96 350,049 350,049 700,098 825,000 1,525,098 1996-97 322,411 322,411 644,822 880,000 1,524,822 1997-98 292,491 292,491 584,982 940,000 1,524,982 1998-99 260,061 260,061 520,122 1 9 005,000 1,525,122 1999-2000 224,886 224,886 449,772 1,075,000 1,524,772 2000-01 186,724 186,724 373,448 1,155,000 1,528,448 2001-02 145,144 145,144 290,288 1,235,000 1,525,288 2002-03 100,375 100,375 200,750 1,325,000 1,525,750 2003-04 52.012 52.012 104.024 1,425,000 1,529,024
Total $2.709.125 2.709.1255.418.250- 16.788.250
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1 CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued) I
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$12,689,800 - ENCINA FINANCING JOINT POWERS AUTHORITY INSTALLMENT PURCHASE AGREEMENT
Principal Fiscal Interest Due Interest Due Total Due Total Ani
1993-94 $ 422,226 413 , 850 836,076 274 , 630 1,110,'
1994-95 413 , 850 404 , 866 818 , 716 289 , 782 1 , 108,d
1995-96 404 , 866 395 , 142 800 , 008 308 , 722 1,108,'
1996-97 395 , 142 384 , 738 779 , 880 327 , 662 1,107,. 1997-98 384 , 738 373 , 586 758 , 324 348 , 496 1,106, 1998-99 373 , 586 361 , 616 735 , 202 371 , 224 1,106,
1999-2000 361,615 348 , 749 710 , 364 395 , 846 1 , 106,: 2000-01 348 , 749 334 , 979 683 , 728 420 , 468 1 , 104 , : 2001-02 334 , 979 320 , 167 655 , 146 448 , 878 1,104,(
2002-03 320 , 166 304 , 296 624 , 462 477 , 288 1 , 101 ,:
2003-04 304 , 297 287 , 229 591 , 526 509 , 486 1,101,~
2004-05 287 , 229 268 , 543 555 , 772 543 , 578 1,099 ,:
2005-06 268 , 543 248 , 555 517 , 098 581 , 458 1,098,i 2006-07 248,555 227 , 201 475 , 756 621 , 232 1,096,' 2007-08 227,201 204 , 349 431 , 550 664 , 794 1,096,:
204,349 179,933 384,282 710,250 1,094,. 2008-09 2009-10 179 , 933 153,891 333,824 757,600 1,091,a 2010-11 153,891 126 , 025 279,916 810,632 1 , 090 ,: 2011-12 126,025 96 , 273 222 , 298 865 , 558 1 , 087 , I 2012-13 96,272 66 , 172 162 , 444 926 , 166 1,088,i 2013-14 66,172 34 , 101 100 , 273 986 , 774 1,087 , [ 2014-15 34.101 - 34,101 1.049.276 1,083,:
Year Aums t 1 February 1 Interest Aumst 1 Debt Ser.
Total $5.956& 5.534.261 11.490.74612.689.800 24.180..
121
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CITY OF CARLSBAD
General Expenditures by Funcrion
Last Ten Fbcd Years
Fiscal General Public Public CllltUW Capital Deb SeM - Year Toral (11 Government safetv works (21 Welfare Recreation Projects
1983-84 S 16,753,893 2,551,209 5,813,451 3,408,568 825,236 2,764,121 1,d33,261 358,O
1984-85 22,279,729 3,008,056 7,020,105 2,974,480 860,556 3,278,290 4,619,242 519,oi
n24 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 23,032,108 859,7'
1987-88 41,960,153 5,988,144 10,102,111 5,375,688 1,584,897 5,358,475 11,216,835 2,334,Or
1988-89 55,745,009 7,139,089 11,728,140 6,336,093 1,614,015 5,808,094 19,786,724 3,332,s
1989-90 53,133,603 7,920,491 13,836,529 7,402,476 1,808,058 7,413,870 11,104,390 3,647,8(
1990-91 72,999,324 10,437,609 16,188,745 6,519,035 2,077,563 7,183,567 26,665,164 4,007,6
1991-92 53,985,119 6,324,697 15,647,112 12,8109175 2,287,271 7,301,171 5,639,898 3,974,7!
1992-93 55,104,390 6,77S,830 15,341,646 11,737,019 2,711,467 6,686,110 7,195,427 4,656,8!
(1) Includes General, Special Revenue, Debt Service and Capital Projects Funds.
(2) Includes community development and utilities and maintenance categories added in
1991-92, as well as public works expenditures.
G EN E RAL EXP END ITU RES BY FU NCTlO N
1992-93
PUBUC SAFETY 28% $15.34
GENERAL GOVERNMENT 12%
$6.78
DEBT SERVICE 82
$4.66
CAPITAL PROJECTS 13 $7.2
UBLlC WORKS 21%
$1 1.74
CULTURE/RECREATION 12% 86.69 WELFARE 5% $2.71
DOLLARS IN MILLIONS
Source: City of Carisbad Comprehensive Annual Financial Reports
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TOTAL EXPENDITURES
LAST TEN YEARS
DOLLARS IN MILLIONS
580
$60
$40’
so
1984 1985 1986 1987 19881989 1990 1991 1992 1993
FISCAL YEAR
INCLUDES GENERAL. SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECT FUNDS
SPENDING ON CAPITAL PROJECTS I LAST TEN YEARS
DOLLARS IN MILLIONS
$30
$25
$1 5
$1 0
55
$0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 E FISCAL YEAR
12 5
CITY OF CARLSBAD
General Revenues by Source
Last Ten Fiscal Years
Transient Fiscal P~perty sales occupancy Other BUSiness a Total fl) TaxeS - TaxeS TaxeS - TaxeS Licenses
1983-84 $ 23,870,285 4,848,041 4,891,379 1,007,268 1,969,434 351,875
1984-85 3 1,272,744 5,243,124 5,726,373 1,04 1,947 2,084,724 428,546
1985-86 37,078,236 6,769,473 6,222,008 1,157,794 1,807,457 471,470
1986-87 45,626,319 8,516,463 6,487,371 1,729,998 1,987,299 517,972
1987-88 42,944,962 8,882,8 13 7,128,461 1,995,447 4,205,570 616,278
1988-89 , 54,565,025 11,012,396 8,186,215 2,752,025 3,648,826 696,706
1989-90 57,970,453 12,677,817 9,342,077 3,630,662 4,114,856 791,715
1990-91 77,371,107 14,007,364 9,426,111 3,3 10,043 3,691,387 832,432
199 1 - 92 58,440,436 15,132,124 8,723,382 3,077,595 5,153,213 910,532
1992-93 58,115,465 15,332,036 9,167,849 3,098,793 3,408,805 1,071,342
(1) Includes General, Special Revenue, Debt Service and Capital Projects Funds.
(2) Included interdepartmental services category added in 1991-92 and miscellaneous
revenues.
GENERAL REVENUE LAST TEN YEARS
PROPERTY TAX AND SALES TAX REVENC
WST TEN YEARS
DOLLARS IN MILLIONS DOLLARS IN MILLIONS
$1 6
$1 4
$80 $1 2
$1 0
$60 $8
$6
$4 $40
$2
$0
$1 00
$20
so 19841985198619871988198919901991 19921993 FISCAL YEAR
W PROPERTY TAX SALES TAX FISCAL YEAR
Source: City of Carisbad Comprehensive Annual Financial Reports
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Contributions
Other htergov- Charges for Fines and From Property Licenses ernmental Services Forfeits Interest Owners - Other
2,099,942 ~,m,sw 4,747,951 256,471 1,542,092 378,:
3,042,110 2,060,542 8,541,600 345,750 2,638,536 119,.
3,525,394 2,924,892 9,814,416 288,055 2,857,221 1,240,1
958,( 3,830,93 1 5,608,869 12,678,062 366,597 2,944,741
3,521,242 2,506,690 8,770,867 435,649 3,422,839 175,593 1,283,.
3,858,173 2,876,536 7,722,568 478,830 5,644,873 4,529,710 3,158,
4,058,540 3,267,054 10,728,326 511,890 6,002,986 402,292 2,442,
3,550,013 5,405,074 10,701,989 515,746 5,737,513 16,515,962 3,677,
3,307,980 6,087,138 7,759,224 312,984 4,826,292 446,813 2,703,
3,355,533 7,107,385 5,725,597 231,877 4,866,361 380,389 4,369,
TRANSIENT OCCUPANCY TAX CHARGES FOR SERVICES LASTTENYEARS LAST TEN YEARS
DOLLARS IN MILLIONS DOLLARS IN MILLIONS
$1 4
$1 2
$10
$8
$6
$4
$2
so so
53
$2
$1
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1984 1985 1986 1987 1988 1989 1990 1991
FISCAL YEAR FlSCAL YEAR
1 Source: City of Carisbad Comprehensive Annual Financial Reports
127
CITY OF CARLSBAD
Ratio of General Bonded Debt to Assessed Valuation
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Percent of
Fiscal Net Assessed Outstanding Total Per Capita
Year Valuation (11 Principal (22 Valuation Debt Population (3
1983-84 $ 2,194,598,447 9 15,000 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 3,458,390,377 670,000 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
199 1-92 5,909,991,722 65,661
1992-93 6,066,896,498 67,172
(1) Net assessed value is stated at 100% of market value. Data from County of San Diego
Office of the Auditor and Controller.
(2) Library and sewer general obligadon bonds per the City of Carlsbad Comprehensive
Annual Financial Reports.
(3) Population as of January 1 of each year per the State Department of Finance.
GENERAL BONDED DEBT PER CAPITA
LAST TEN YEARS
DEBT IN DOLLARS
$80 -
$60 -
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
FISCAL YEAR
12 8
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CITY OF CARLSBAD
Computation of Legal Debt Margin
June 30,1993
25% of net assessed valuation (1) $ 1,516.724,l
Debt limit (15% of net assessed valuation as adjusted)
Amount of debt applicable to debt Limit:
227,508,6
Bonded debt (2) 20,040,O
Certificates of participation 7,830,01
Obligations under capital leases 874.2;
Total amount of debt applicable to debt limit 28,744,2:
Legal debt margin $ 198,764,3
Percent of debt limit 12
(1) Beginning January 1,1987, a change in state law required the County Assessor to assess
taxable property at 100% of full value as opposed to the prior practice of assessing prope
at 25% of full value. To be consistent with previous years, the assessed valuation used 1
this computation is at 25% of full value.
e
(2) Total bonded debt:
Parking and Building Authorities $ 1,275,O
College Boulevard Assessment Dis~ct 7,580,O
Tax Allocation Bonds 11.1 850
Total bonded debt $ 20,040,0(
129
CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
June 30, 1993
1992.93 Total Assessed Valuation: $6,159,027,618 (after deducting $157,710,307 redevelopment increme valuation)
Debt
Direct and Overlaupinn Bonded Debt: Applicable 1993
San Diego County Building Authorities 4.742% $ 16,880,714
San Diego County Water Authority 4.921 734,2 13
Metropolitan Water District 0.779 5,447,158
Carlsbad Unified School District 97.086 54,321
Carlsbad Unified School District Authority 97.057 13 , 136,665
San Marcos Unified School District and Certificates of Participation 25.260 2,897,273
San Dieguito Union High School District 7.844 62,752
Encinitas Union School District, Authority and Certificates of Participation 23.882 3,280,192
Mira Costa Community College District Certificates of Participation 24.763 637,647
Other School Districts various 71,336
Ti-City Hospital District 31.815 400,869
Palomar Pomerado Hospital District and Authority 0.702 76,237
Leucadia County Water District and I.D. #1 50.611 & 1.633 140,976
Vallecitos Water District and I.B.’s #1, 2 & 6 6.604 - 10.868 83,588
Carlsbad Municipal Water District Certificates of Participation . 100.000 11,370,000
City of Carlsbad Building Authorities 100.000 9,105,000
100.000 30.440.000 City of Carlsbad 1915 Act Bonds
TOTAL DIRECT AND OVERLAPPING BONDED DEBT (1) $107,181,5 18
(1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and n
bonded capital lease obligations.
YO June 30,
Carlsbad Unified School District Community Facilities District #1 100.000 12,110,000
Olivenhain Municipal Water District, I.D. #1 30.991 252,577
Ratios to Assessed Valuation:
Direct Debt ($9,105,000) ............................ 0.15%
Total Debt ....................................... 1.74%
Share of Authorized and Unsold General Oblination Bonds:
Metropolitan Water District ......................... $389,500
Carlsbad Municipal Water District, I.D. #1 ............... $98,867
Carlsbad Municipal Water District, I.D. #3 .............. $200,000
State School Building Aid Repavable as of 6/30/93: $140,447
Source: California Municipal Statistics, Inc.
130
0.2% -
0.1% - I
CITY OF CAIUSBAD
Revenue Bond Coverage
Water Utility
Last Ten Fiscal Years
(2) Net Revenue
(1) Direct Available Debr Service Requirements
For Debt Year Revenue EXWIlSeS Service Principal Interest Total Coveras Fiscal Gross operating
1983-84 $ 1,672,564 1,557,173 115,391 - (3) 56,875 56,875 2.03
1984-85 1,371,214 1,119,336 251,878 125,000 50,138 175,138 1.44
1985-86 1,522,383 1,317,953 204,430 130,000 42,531 172,531 1,18
1986-87 1,532,953 933,368 599,585 140,000 38,549 178,549 3.36
1987-88 1,637,819 1,334,525 303,294 1s0,ooo 29,096 179,096 1.69
1988-89 1,760,102 1,195,822 564,280 157,000 21,211 178,211 3.17
1989-90 2,001,832 1,415,542 586,290 160,000 12,718 172,718 3.39
1990-9 1 11,398,343 9,172,478 2,225,865 775,000 1,088,386 1,863,386 1.19
1991-92 11,504,798 9,520,564 1,984,234 685,000 842,538 1,527,538 1.29
' 1992-93 12,267,854 11,421,571 846,283 730,000 798,696 1,528,696 0.55
(1) Includes operating and non-operating revenues.
(2) Total operating expenses including depreciation and amortization.
(3) In 1983-84 the City began recording principal payments for the Water Revenue bonds in
the year they became payable. In prior years principal payments had been recorded as
paid on June 30 of each year rather than July 1 of the following year.
(4) Effective January 1, 1990, Carlsbad Municipal Water District (CMWD) became a
subsidiary dismct of the City. Thus all amounts have been adjusted accordingly. Debt
service requirements after that date include the Improvement District bonds and the
Certificates of Participation issued by CMWD.
Source: City of Carlsbad Comprehensive Annual Financial Reports
132
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WATER ENTERPRISE GROSS REVENUE
VS. DIRECT OPERATING EXPENSES
LAST TEN YEARS
DOLLARS IN MILLIONS
$1 4
$1 2
$1 0
'$8
$6
$4
$2
so
CMWO lnduded baginning 90-91
1984 1985 1986 198'1 1988 1989 1990 1991 1992 1993
FISCAL YEAR
W GROSS REVENUE E!! OPERATING EXPENSES
NET REVENUE AVAILABLE FOR DEBT SERVICE
LAST TEN YEARS
DOLLARS IN THOUSANDS
$2500
$2000
$1 000
$500
$0
1984198519861987198819891990199119921993
FISCAL YEAR
133
CI7Y OF CARLSBAD
Demographic Statistics
Last Ten Fiscal Years
City
Population Population
Population (21 Square Percent county Percent of Counq year Miles Population (1) Channe
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 2,548,928 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)
1993 42.2 67,172 2.3 2,648,597 2.5
(1) Source - State Department of Finance.
(2) Source - County Data Base, San Diego County.
(3) Population for City General Plan area - San Diego Association of Governments Series VI1
population forecast.
(4) County future population estimate not available.
POPULATION
LAST TEN YEARS
iN THOUSANDS
70
60
50
40
30
20
10
0
19841985198619871988198919901991 19921993
FISCAL YEAR
POWLATION AS OF JANUARY 1 PER STATE DEPARTMENT OF FINANCE 134
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CI" OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Fiscal Year Secured Property Unsecured Prouerty Less Prouerty Exemutic
1983-84 $ 2,195,611,840 57,309,394 8,401,587
1984-85 2,487,497,173 75,231,054 14,605,675
1985-86 2,893,268,927 79,524,350 18,616,217
1986-87 3,456,419,183 80,781,420 19,248,842
1987-88 3,937,879,614 98,879,688 2 1,85 9,608
1988-89 4,197,767,148 109,633,027 20,083,629
1989-90 4,813,718,827 147,696,674 23,581,665
1990-91 5,406,790,697 182,042,779 25,387,503
1991-92 5,823,039,810 205,094,661 27,414,635
1992-93 5,948,358,026 242,255,869 31,586,277
NET TAXABLE VALUE LAST TEN YEARS
DOLLARS IN BILLIONS
$7
$6
$5
$4
$3
$2
$1
so 1984 1985 1988 1987 1988 1989 1990 1991 1992 1993
FISCAL YEAR
Source: City of Carlsbad Comprehensive Annual Financial Repom
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Total Homeowneis Net Assessed Percentage
Assessed Valuation Exemptions Valuation Change
2,244,519,647 49,921,200 2,194,s 98,447 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
4,014,899,694 75,650,400 3,939,249,294 14. I
4,287,316,546 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 8 6,159,027,618 92,131,120 6,066,896,498 2.7
8 137
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Budding License Fiscal Permit Percent Estimated License Percent Year Revenue ckanae Valuation Revenue Channe
1983-84 $ 1,068,876 118.1 198,520,304 351,875 25.7
1984-85 1,055,738 (1.3 2 13,403,469 428,546 21.8
1985-86 1,397,129 32.3 263,548,719 471,470 10.0
1986-87 1,230, IO0 (12.0) 245,661,491 517,972 9.9
1987-88 671,779 (45.4) 12i33 1,606 61 6,278 19.0
1988-89 674,8 14 .5 11 1,898,109 696,706 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
199 1-92 219,445 (74.4) 42,351,906 910,532 9.4
1992-93 234,063 6.7 49,809,414 1,071,342 17.7
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
DOWAS IN MILLIONS
19841985198019871988198919901991 19921993
FISCAL YEAR
INCLUDES GENERAL. SPECIAL REVENUE. DEBT SERVICE AND CAPITAL PROJECT FUNW
Source: City of Carlsbad Comprehensive Annual Financial Reports
138
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CITY OF CARLSBAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Total Current % of Levy
Collected
Fiscal Total - Year Current Levy Collections
1983-84 4,972,861 4,653,350 93.6
1984-85 5,565,653 5,170,614 92.9
92.9 1985-86 6,742,713 6,263,242
1986-87 8,077,224 7,488,152 92.7
1987-88 9,368,469 8,733,089 93.2
93.7 1988-89 10,928,048 10,237,929
1989-90 12,600,253 11,816,888 93.8
1990-91 13,931,230 12,986,628 93.2
13,795,525 92.4 199 1-92 14,932,937
1992-93 13,990,844 12,776,232 91.3
PROPERTY TAX LEVIES AND COLLECTIONS e LAST TEN YEARS
DOLLARS IN MILLIONS
$1 6
81 4
$1 2
$10
$8
$6
$4
$2
so
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
FISCAL YEAR
.TOTAL LEVY DAMOUNT COLLECTED a
139
CITY OF CARLSBAD
Special Assessment Billings and Collections
College Boulevard Assessment District
Last Seven Fkcd Years
Fiscal Special Assessment Special Assessments
Year Billhas Collected
Prior to 1987 WA N/A
1987 $ 1,000,362 996,884
1988 988,116 987,682
1989 984,718 985,207
1990 985,680 985,670
1991 986,080 760,329
1992 940,780 758,864
1993 508,080 421,592
Note: There were no special assessment billings for the College Boulevard Assessment
Disuict prior to the fiscal year ended June 30, 1987.
Source: City of Carlsbad Comprehensive Annual Financial Reports
140
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11 Melles Griot Laser Products Gas Lasers 150
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CITY OF CQRLSBAD
Prhupal Employers
1992-1993
8 Firm Product/Service Emdovees
Manufacturing:
Callaway Golf Golf Equipment 900
Puritan-Bennett Corporation Medical Equipment 550
Hughes Aircraft Company Electronic Equipment 840
The Upper Deck Entertainment Cards 675
Cobra Golf Golf Equipment 300
Smith & Nephew DonJoy Inc. Orthopedic Braces 300
Charter Golf Golf Apparel 250
Taylor Made Golf Co., Inc. Golf Equipment 240
Beckman Instruments Medical Diagnostic Reagent 200 International Totalizer Systems Export Off Track Betting Systems 170
Intelligent Medical Systems Ear Thermometers 170
Dyna Corporation Medical Products & Printing Co. 155
Hughes JVC Technology Corporation Large Screen Display Projector 155
Calcitek, Inc. Dental Implants 150
Eaton-Leonard Corporation Vending Machines 150
Non-Manufacturing:
Plaza Camho Real Shopping Mall (5 major Dept. Stores) 3,000
Carlsbad Unified School District Education 540
Car Country Carlsbad Car Dealerships 500
Farmefs Insurance - Regional Insurance 420
San Diego Gas & Elecdc U&ty Company 270
Isis Pharmaceuticals Research and Development 185
Best Western Andersen’s Inn HoteVRestaurant 170
La Costa Hotel & Spa Hotel & Health Spa 1,200
City of Carlsbad Municipal Government 483
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Source: City of Carlsbad Chamber of Commerce
141
CITY OF CARLSBAD
PAcipd Taxpayers
1992-93
Percentage of
Assessed
total Net
Taxpayer Type of Business Valuation Valuation (1)
San Diego Gas & Electric Co. Power Generation $ 328,515,295 5.4%
Fieldstonefia Costa Associates Land Developer 177,486,963 2.9
La Costa Hotel & Spa Corp. Hotel & Health Spa 148,582,543 2.4
Hughes Aircraft Company Manufacturer 92,402,832 1.5
Lyon/Copley Carlsbad Associates Land Developer 41,922,080 0.7
Puritan-Bennett Corporation Manufacturer 34,295,000 0.6
Aviara Resort Associates Limited Land Developer 30,992,704 0.5
Upland Industries Corp. Land Developer 30,818,133 0.5
Plaza Camino Red
Aviara Land Associates Limited Land Developer 60,709,825 1.0
- 0.5 Shopping Center 29,896,933 -
$ 975,622,308 16.1%
(11 Net assessed valuation for 1992.93 - $6,066,896,498
142
CITY OF CARLSBAD
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1992-93
Date of Incorporation July 16,1952
Type of City General Law
Form of Government CouncUManager
Area 42.19 sq. des B Population 67,172
1 Miles of Streets 238
Number of Streets 4,516
Fire Protection:
Number of Stations 6
Number of Firefighters & Officers 72
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Police Protection:
Number of Stations 1
Number of Sworn Police Officers 77
Municipal Water District:
Number of Customers 17,307
Average Daily Consumption 13.04 don gdoi I Miles of Lines and Mains 325
Miles of Sewers 113
Recreation and Culture:
Number of Parks (Improved and Unimproved) Area of Parks 326.88 acres
Number of Pools 1
Number of Libraries 2
36
Number of Volumes 207,711 8 Total Number of Full The City Employees 483
14 3
144