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Home My WebLink About1994-05-10; City Council; 12701; THIRD QUARTER FINANCIAL REPORT FOR FISCAL YEAR 1993-94THIRD QUARTER FINANCIAL REPORT FOR FISCAL YEAR 1993-94 Accept and file report. ITEM EXPLANATION: This report summarizes the fiscal status of the General Fund, the Carlsbad Municipal Water District and Sewer Enterprise, and the Carlsbad Redevelopment Agency through third quarter of fiscal year 1993-94. GENERAL, FUND REVENUES in the General Fund are slightly above budgeted levels and total $25.5 million. payment was received in April. Year end estimated property taxes are expected to total $11.1 million. Sales taxes are coming in 9% higher than budget and now total $7.9 million. The increase is attributable to rising retail sales particularly in auto sales and department store categories. Corrections to tax reporting resulting from sales tax audits will also add more than $80,000 over the next year. Sales taxes are projected to exceed budget by 4% or $400,000 by year end. Franchise tax receipts are over budget by $156,000 due to tax rate increase on cable TV . u h 0 a a, &I a, 5 a a : rl .rl L) G 7 0 Development related revenues remain below budget by $955,000 primarily due to the low levels of planning and engineering fees. The City continues to issue a small number of building pennits, 118 so far this year. Other charges for services are ahead of budget projections with ambulance, police, fire and library receipts leading the way. Recreation fees are 7% below budget but fees are expected to the end the year on target. EXPENDITURF,S and encumbrances (commitments to purchase) in the General Fund total $27.7 million through third quarter. About 29% of the available budget remains, which is 4% better than expected if funds were spent evenly throughout the year. Lower expenditures in several departments, especially Maintenance & Utilities and Community Development, lead to the current picture. SUMMARY - Although several major revenue sources are showing significant increases and decreases, third quarter General Fund receipts are slightly ahead of projections for this point in the fiscal year. Projections for year end revenues show this slightly positive position eroding to just below current estimates. Fiscal year end revenues should come in at around $37.6 million, down $300,000 from the current estimate of $37.9 million. Expenditures are expected to remain lower than budget thus allowing the General fund to end the year with balanced revenues and expenditures. 4J a a, c) V e m 0 \ \ rl rn z F 0 U P 6 z 3 0 0 a 0 PAGE TWO OF AGENDA BILL NO. id: 9 0 I WATER AND SEWER OPERATIONS The Carlsbad Municipal Water District received $8.9 million in revenues with operating expenses of $8.2 million. Both water sales and water purchases show increases from last year, the result of greater volumes of water used and higher rates charged to the District and to their customers. Water use is expected to increase as the year moves to the dryer months. Sewer operating revenues total $3.6 million with operating expenses of $2.7 million. Sewer facilities depreciation and payments to Encina Wastewater Plant for sewage treatment account for over 68% of the Sewer budget. For the second year, payments to Encina were reduced by almost $400,000 because of previously deposited funds. REDEVELOPMENT AGENCY Redevelopment revenues through third quarter total $829,000, with tax increment receipts remaining at 1992-93 levels. April property tax payments bring receipts almost to the $1.4 million tax revenue budget. Third quarter expenditures of $911,000 include the only required bond payment for the fiscal year. Because refinancing outstanding bonds provided significant savings for this year, projected Redevelopment revenues will exceed administrative and debt service costs. EXHIBITS : 1. Fiscal Year 1993-94 Third Quarter Financial Status Report. @ 0 A* , b Financial Status Report Third Quarter - Fiscal Year 1993-94 Prepared by Finance Department & [he [bird quafler ends, eGQnQm& news continues to be of interest to the media. The March 30, 1994 issue of The San Diego Union-Tribune reports forecasters at the University of California Los Angeles believe the bottom of the recession has been reached. The economic activity that is the result of the Northridge earthquake has hastened the recovery as well as declining real estate costs and stable wages. Carlsbad's sales tax revenues appear to support a recovery forecast with positive margins. However the construction industry is still lagging and offsets the modest gains accomplished in other revenue streams. GENERAL FUND RNENUES To date, the City's General Fund revenues total $25.5 million. We are essentially at the budgeted revenue levels, outpacing the forecast with a 2% or $386,000 increase over the annual forecast. While some revenues are performing exceptionally well, these are offset by others that are showing disappointing returns. TAXES as a group exceed the budget by 5% or $756,000. Property taxes are right on target with a total of $6.6 million received to date. It is estimated that at year end property taxes will come in at budgeted levels. The star revenue producer is sales tax coming in at $656,000 or 9% over budget. The increase indicates that Carlsbad experienced good Christmas sales, and that consumers are gaining confidence as reflected in rising retail sales. At year end, it is projected that sales taxes will come in above the budget by approximately $400,000. Car sales may be leading sales tax receipts out of the doldrums. Don Bauder, in the March 31, 1994 edition of the San Diego Union Tribune, notes that for the first time since 1988, new car sales have stopped declining. The motivation for buying cars has spurred an increase in sales. Roger Sather of Kearny Mesa Dodge and Lexus Kearny Mesa notes "People are not buying cars because they want to, but because they have to." Tom Stall Of Bob Stall Chevrolet in La Mesa indicated that car dealers are having difficulty getting enough product to meet rising demand. 2 \ aCoast Waste Mgt 0 Daniels Cablevision UAll Other a SDG&E e 0 4 Financial Status Report Page Three The only tax showing receipts below budget is transient occupancy tax, below by $125,000 or 6%. Declining room rates may have an influence on the sluggish receipts. Chamber of Commerce, the Carlsbad/Oceanside lodging market experienced a significant reduction in average room rates. The average rate was $69.48 in 1992 and $54.88 in 1993, a decline of $1 4.60. DEVELOPMENT RELATED revenues persist at their below budget performances coming in at $955,000 or 43% below budget. While construction permit receipts are coming in above budget by $40,000 or 20%, planning and engineering fees are below budget by 62% and 48% respectively. The City continues to issue a small number of building permits, 118 so far this year. Even more bleak are the planning and engineering revenues which are received during the initial stages of development. Many plans were reviewed over the past few years resulting in a decreased demand for these services in the current year. OTHER CHARGES FOR SERVICES are ahead of budget projections. Ambulance procedures as well as rate increases. Other charges or fees are up $1 05,000 or 47% and can be attributed to strong receipts for fire and police reports and services, as well as overdue book fines. Recreation fees are coming in below budget by $48,000 or 7%, however these fees are expected to end the year at budgeted levels. The remainder of the fiscal year contains two more class registration periods, the triathlon registration fee collections and summer aquatic class enrollment, all yielding substantial receipts. EXPENDITURES Expenditures through March 1994 totaled $27.7 million or 71% of the budget. If funds were spent evenly throughout the year, 75% of the annual budget would be spent. According to the April 1994 Economic Bulletin published by the Greater San Diego receipts are up $76,000 or 51 % over budget, which is the result of better billing collection * 0 . GENERAL FUND REVENUE COMPARISON I THROUGH MARCH 1994 ESTIMATE ACTUAL THROUGH THROUGH DOLLAR PERCENT MAR 1994 MAR 1994 CHANGE CHANGE Taxes 16,312,000 17,068,000 756,000 5% Licenses and permits 1,401,000 1,372,000 (29,000) -2% State Subventions 2,096,000 1,935,000 (1 61,000) -8% Charges for services 2,675,000 2,040,000 (635,000) - 24% Fines and forfeitures 192,000 174,000 (1 8,000) -9% Other revenue sources 1 10,000 170,000 60,000 55% TOTAL REVENUES 25.1 47,000 15,533,000 386.000 2% interdepartmental charges 1,388,000 1,642,000 254,000 18% Interest 973,000 1,132,000 159,000 16% e TAX REVENUE 0 * YTD BUDGET TO ACTUAL MARCH 1994 (IN MILLIONS) 10 9 8 7 6 5 4 3 2 1 0 Rl PROP.TAX SALES TAX TOT TAX DEVELOPMENT FEE REVENUE YTD BUDGET TO ACTUAL MARCH 1994 pl OTHER REVENUE YTD BUDGET TO ACTUAL MARCH 1994 2500 2000 1500 1000 500 0 WN7% UP 10% 8 <Q@ 49 &@ %&% $6 6 &? <.." ,'= *." co Q 9 #$~~ *e* ,..'" * 9 <. &V &! c' e 0 $?$&+!$!# 88888 888 888888dp 8 dp dp 8 dp *m--Q,*meo rc r v) eo 0 '1';' *I *j 000000 000000 88882 000 990?0!99 0 o-o-o-oq E] --3 3 ! p a=(3 k%s%%g EoIC0101Q) -Eo-(YQ) b--S m7*-wma g (u a - - g - $1 2; 0'9c?cqq,: ebomrc- eTk teq**cqc?h a? 9 9 eq !?E l-7 17 I 0999990 0- 0- zm 0- zF 7--m*eom 9 (o(oIC* 0- 9 9 0 - 9 -0 9 0- ICommm -ICo(Dm -am" wm;; yx$ezz$ s 5 a3 Oo0 000000~ 8 8 8 8 +>q, xg3gageo mIC00~ E-%& m01001om m58 i 3 d 99999 0- a z m o---O1-a - = 010)01m~ (3. w co, d IC, Q) r-_ 01 s 7 g E9g zzm cu v) m I %E- -Iwg sssss8 0-9990 i ugr fff + 8* ozg cqcqqcqcu-k u?cu%?Q) k.?O 2 gfm I w :LO z 0) (D 9990-90 ICcupJwwNg s fi 2 8% r- g s3g IC wrnm(Vrc m-c & ,urn - 2 3 +lu osssso~ w 3;$ g-gg:E8 i!i p>a W;;s grcr r w f= k 4 Flu osssso~ I #f kQCu $ F r (ui r n ze. w-m-0-m *. 4 y cddda50 w-m I* rrr (u COrrOlr s005;'== 05;'oso oooooo 8Z888 S88 8800000 8 8 8 8 O cUom(oEoa I I1 I Ann LO L al 0-99490 =a m_a---*, s *e9 Wv) a UN qj c 0000000 0- 9 9 9 0- 9 9 0- omoooro~- 0 0 om00 IC 01 0-01 Eo 0 Q) 7 rrc (3 0000000 0000 0- 0- 0- 0- 0- 0- 0 (3 7 a E 8- 8- 8- O Oo0 0000000 9 9 0- 00000 a, O O O m a 88888O ooooo mEoao* - w-m'D*- mm-mbcol; (uj - (3 * r %Eg oomICQ,Cu 9: a= Eo(omQ,m~ m- 7- 0- Q, 7 mbbb 01q-01a r-_ 3 (u rc- (OCvmCuwmg- 8 z $ Q) 2 gg ZQ," 0- (u (u% ggg$fi $?$$$$$ 29298 $$$ $$22$8$ (u (u (u- - r *0*-r- iLh" &(3 amy) mr&UKIcor-(u "7 I I I -0010)-& EoOrnO~ 7 m IN 11-31 (? 2 ZI !!I o?TTcqqcqY, LQ) 01~co-(omr; : 2 comuj = -Qc l-01l001 h n so so Os0 88Z888g g 8 8 8 3 z w.r 0?999990 0- 0- 0- 0- oooo8g 8gZ8g 000 9 9 0- ?M*, 9 9 9 9 0- Eo(o(o0mm 01 F (u -cocn*-m- 0101aCu v (3=a sm--- v) : P cnpg - z 0000000 0 0 0 0 Oo0 0000000 0 0 0 oooooo oo8Sg 000 9 9 0- *0.3J(o(u- ?E., EoEoQ,ro7 (3. 7 Q). 00 000000 Fw-FqY, 000 ggggggg 8 g g 8 g SS888g 88888 000 9 9 0- 0-a -8 cc? 7 - 99990901 0- 0- 0- 9 9 9 9 0 CUEo 01b W Eo-7(3 wr-mcucoag s $ 12 Cu7mNcom mICd-01 v- r z r 2 0- r- sssssso~ 0- 0- 0- 0- 0 CumCuEo-ow = 0 r- 9 9 0- 9 0- (o01mmEoo 001 0101-w U > z z 4 B CT I- I \I GENERAL FUND EXPENDITURE STATUS BY DEPARTMENT TOTAL AVAllABLE % BUDGET*** COMMIllED* BALANCE AVAILABLE** DEPT DESCRIPTION FY 1 993- 94 313 1 I94 3/31 I94 313 1 I94 GENERAL GOVERNMENT 101 0 CITY COUNCIL 167,401 1 16,708 50,693 30.3% 1020 CITY MANAGER 756,220 546,731 209,489 27.7% 1030 CITY CLERK 32,680 11,042 21,638 66.240 1210 ATTORNEY 421,269 262,957 158,312 37.6% 1310 FINANCE 1,032,633 701,992 330,641 32.0% 1320 TREASURER 101,400 59,236 42,164 41.6% 1410 PURCHASING 358,709 242,248 116,461 32.5% 1510 HUMAN RESOURCES 799,505 423,358 376,147 47.Wo 1710 INFORMATION SYSTEMS 395,053 291,704 103,349 26.2% TOTAL GENERAL GOVERNMENT 6,326,005 4,394,676 1,931,329 30.5% 1990 OTHEWNON-DEPT/COMINGENCY 2,261,135 1,738,700 522,435 23.1% 26.9% =FIRE 6,938,635 5,110,762 1,827,873 26.3% TOTAL PUBLIC SAFETY 15,848,156 11,625,700 4,222,456 26.6% PUBLIC SAFETY 21 xxPOLlCE 8,909,521 6,514,938 2,394,583 COMMUNITY DEVELOPMENT 30xxCOMMUNITY DEVELOPMENT 876,369 51 1,923 364,446 41.6% 32xxPlANNING 2,059,967 1,426,498 633,469 30.8% 3610 BUILDING 896,703 574,149 322,554 36 .O% TOTAL COMMUNITY DEVELOPMENT 6,984,364 4,743,850 2,240,514 32.1% 3lxxENGINEERING/HIST PRES” 3,151,325 2,231,280 920,045 29.246 CULTURE & RECREATION 40xx LIBRARY 2,460,877 1,780,417 680,460 27.7% 82,932 32.8% 4lxxPARKS & RECREATION 3,849,262 2,661,392 1,187,870 30.9% 42xxCULTURAL ARTS TOTAL CULTURAL ARTS 6,563,002 4,611,740 1,951,262 29.7% MAINTENANCE 8 UTILITIES 3,602,895 2,369,564 1,233,331 34.2% 252,863 169,931 TOTAL GENERAL FUND 39,324,422 27,745,530 1 I .57a.a92 29.4% @ 0 Financial Status Report Page Four WATER AND SEWER OPERATIONS Water District Ooeratina Fund The Water District has received $8.9 million in revenues through March, or 73% of their budget. Budgeted expenditures total $8.2 million, or 64% of their annual budget, which results in nearly $715,000 in operating income. Water sales is the largest source of revenue and are up 36% over 1992-93 revenues. Expenditures for water sales show a 27% increase over the previous year. Increases in water purchased and sold is the result of greater volumes of water used as well as a rate increase. Sewer Operatina Fund Revenues to the Sewer fund total $3.6 million representing 92% of the budgeted amount. Expenditures through March total $2.7 million and represents 60% of the planned budget. This results in an operating income of $830,000 for the Sewer fund. Nearly all expenditure categories show that spending has decreased by $1 75,000 or 6% from the 1992-93 level. CARLSBAD MUNICIPAL WATER DlSTRlC c WATER OPERATIONS MARCH 31,1994 e REVENUES: WATER SALES 5,128,863 6,986,186 1,857,323 36.2 CHARGES FOR CURRENT SERVICES 1,180,298 1,448,772 268,474 22.7 FINES, FORFEITURES & PENALTIES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES: SAIARIESBENEFITS INTERDEPARTMENTAL SERVICES PURCHASED WATER UTILITIES OUTSIDE SERVlCES/MAlNTENANCE GENERAL OFFICE EXPENSE MATERIALS AND SUPPLIES DEPRECIATION CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES (465,855) 713,767 1,179,622 (253.2) OPERATING INCOME/LOSS File: H2UWOSTAT BUDGET REVENUES: CHARGES FOR CURRENT SERVICES 4,440,000 INTEREST 1 00,000 OTHER REVENUES 13,000 TOTAL OPERATING REVENUE 4,553,000 EXPENSES: SALAR IE S/BE NE FITS 561,199 INTERDEPARTMENTAL SERVICES 465,287 UTI LIT1 ES/R E NTALS AND LEASES 60,000 OUTSIDE SERVlCES/MAINTENANCE 189,260 MATERIALS AND SUPPLIES 122,615 DEPRECIATION 1,100,000 ENCINA PLANT SERVICES 1,969,000 35,700 CAPITAL OUTLAY MISCELLANEOUS EXPENSES 38,400 TOTAL OPERATING EXPENSES 4,541,461 OPERATING INCOME/LOSS 11,539 3/31 193 3/31 /94 DIFFERENCE DIFFERENC 3,083,346 3,37’?,595 294,249 9, 12,082 5,400 (6,682) (55. 3,252,718 3,561,637 308,919 9. 157,290 178,642 21,352 13. 398,77 1 364,386 (34,385) (a 346,956 335,866 (1 1,090) (3 46,777 38,186 (8,591) (1 e 353 36 24,323 (10,813) (3C 864,525 825,000 (39,525) (4 1,112,215 1,090,813 (21,402) (1 (9 1 14,844 13,360 (1,484) (1 c 2,905,771 2,731,203 (174,568) (E 30,204 34,234 4,030 13 56,343 5,035 (51,308) 346,947 830,434 @ 0 Financial Status Report Page Five REDEVELOPMENT AGENCY Revenues through March total $S29,000, most of which comes from property taxes. Tax receipts are nearly matching those received in 1992-93, falling short by $9,000. Interest earnings are below those received in 1992-93 by $79,000, This is due mainly to lower cash balances as opposed to lower interest rates. Expenditures total $91 1,000 which accounts for 50% of the budget. Expenses include the first bond payment made in March 1994, and was funded from the refunded bond issue. This is the only bond payment that will be made in 1993-94. * g e ? CARLSBAD REDEVELOPMENT AGENCY OPERATIONS AND DEBT SERVICE FUNDS MARCH 31,1994 PROPERN TAXES 1,280,000 784,026 774,867 (9,159) INTEREST 80,000 109,364 29,856 (79,508) MISCELLANEOUS REVENUES 30,000 3 1,046 24,505 (6,541 1 1,390,000 924,436 829,228 (95,208) SALARI ES/BENEFITS 182,340 121,803 60,537 33.2 INTERDEPARTMENTAL SERVICES 21 3,470 152,896 60,574 28.4 uwms 5,909 3,741 2,168 36.7 RENTALS & LEASES 150,671 148,133 2,538 1.7 OUTSIDE SERVICES/MAINTENANCE 1 16,427 64,199 52,228 44.9 GENERAL OFFICE EXPENSE 5,821 3,217 2,604 44.7 DEBT EXPENSE 1,117,480 41 4,070 703,410 62.9 MISCELLANEOUS EXPENSES 3,120 3,1 11 9 0.3 TOTAL EXPENDITURES 1,795,238 91 1,170 884,068 49.2 EXCESS OF REVENUES OVER EXPENDITURES (405,238) (1) Total committed includes expenditures and encumbrances. (2) Amount available would be 25% if funds were spent evenly throughout the year. File:REC€VELP/MOSTATUS