HomeMy WebLinkAbout1995-02-14; City Council; 13029; 1993-94 Annual Financial Report1
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MTG, 0~1~5 1993-94 ANNUAL FINANCIAL REPORT CITY
DEPT. FIN CITY
RECOMMENDED ACTION:
Accept the 1993-94 City of Carlsbad Comprehensive Annual Financial Report (CAFR), t
Single Audit Report, and the annual reports for the Parking Authority, the Put:
Improvement Corporation, and the Redevelopment Agency.
ITEM EXPLANATION:
Each year an independent auditor examines the City’s financial records. In fiscal yt
1993-94, Conrad & Associates completed its second year as the City’s outside audit
The audit process requires several months of on-site examination, testing, a
reconciliation of investments, bank statements, accounting records, warrants issut
payroll records, appropriations, fixed assets, revenues and expenditures. The end res is an opinion on the fairness of the presentation of the financial data within the repot
As in the past, this year we received an unqualified opinion on all of our annual repor
In addition, the City CAFR has received awards for excellence from the California Socic
of Municipal Finance Officers (CSMFO) since 1986.
The CAFR includes all entities for which the City exercises oversight responsibility whi
includes, but is not limited to, the authority to govern, manage, approve budgets a
assume fiscal responsibility. Using this definition as a guide, the 1993-94 CAFR incluc
the financial transactions of the following legal entities:
The City of Carlsbad
The Carlsbad Municipal Water District
The Parking Authority of the City of Carlsbad
The City of Carlsbad Public Improvement Corporation
The Carlsbad Redevelopment Agency
Due to various legal requirements and managerial needs, separate financial statemei
are prepared for some of the above entities. These have been previously distributed
the respective governing bodies and additional copies are on file with the City Clerk a
the Finance Department.
Financial Summary as of June 30, 1994
The reports show the financial condition of the City at June 30, 1994. The combin
assets of the City of Carlsbad are $369 million, with fixed assets comprising 46% a
cash and investments at 34% of the total. Total City expenditures were $88 million,
increase of $9.5 million over 1992-93. Much of the increase in expenditures is due to la
purchases for capital projects, construction of several major road projects, and the higl
cost of purchased water.
Combined City revenues totaled $90 million, up $7.7 million over 1992-93. The ms
factors for the revenue gain are new developer fees for future road construction and i
increase in water rates to recover escalating costs for purchased water. The general fu
suffered for a third year with decreased revenues directly linked to recessionary influenc
and flat development related revenues.
on property taxes, declining interest rates, diversion of revenues to the state and cour
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PAGE TWO OF AGENDA BILL NO. 1 <, OLL?
General fund undesignated reserves decreased a total of $700,000 after funds WI
earmarked for outstanding parking bonds and golf course costs as adopted in the 19
95 operating budget. Special revenue funds remained at $5.4 million. Capital proje
undesignated reserves equaled $6.8 million and will be spent on projects in future ye:
Working capital in the internal service funds (data processing, fleet management, E
insurance) increased $400,000, primarily due to fleet’s higher cash reserves for futl
vehicle purchases. General liability insurance working capital declined $200,000 to $
million, the result of budgeted use of surplus reserves.
Additional information regarding the City’s operations and achievements for 1993-94 c
be found in the CAFR Letter of Transmittal.
FISCAL IMPACT:
The CAFR and the additional financial reports present the financial condition of the C
and its related entities as of June 30, 1994. With the changing economic situation, 1
financial condition of the City also changes. In order to maintain a good understandi
of the City’s complex financial picture, financial updates are given to Council on a mont
and as-needed basis.
EXHI BITS:
Audit reports are on file with the City Clerk and Finance Department.
1.
2.
Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994,
Parking Authority of the City of Carlsbad, Combined Financial Statements for fisl
year ended June 30, 1994,
City of Carlsbad Public Improvement Corporation, Combined Financial Statemei
for fiscal year ended June 30, 1994.
Carlsbad Redevelopment Agency, Combined Financial Statements for fiscal ye
ended June 30, 1994.
Single Audit Report on Federal Assistance Programs for fiscal year ended June :
1994.
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4.
5.
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8 Financial Report
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8 1200 Carlsbad Village Drive Carlsbad, CA 92008
m
Comprehensive Annual
FISCAL YEAR ENDED
JUNE 30, 1994
Prepared by the Finance Department
F
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1994
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II TABLE OF CONTENTS
- F
INTRODUCTORY SECTION: I Table of Contents
Letter of Transmittal
Location Map
tist of City Officials
Organization Chart
Certificate of Award for Outstanding Financial Reporting,
California Municipal Finance Officers
FINANCIAL SECTION: 1 Independent Auditors’ Report
General Purpose Financial Statements:
a
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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 (Budgetary Basis) - All
Governmental Fund Types
Combined Statement of Revenues, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary
Fund Types
a
a
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0 Notes to General Purpose Financial Statements
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30,1994
TABLE OF CONTENTS (CONTINUED)
Paae
Supplemental Data:
Governmental Funds:
General Fund:
0 68
0 70
0 Comparative Schedule of Expenditures 71
0 Comparative Schedule of Revenues 72
Special Revenue Funds:
0 Combining Balance Sheet 76
0
Schedule of Revenues - Budget and Actual (Budgetary Basis)
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
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 90
0 Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 91
Redevelopment Bonds Debt Service Fund Schedule of Revenues and
Expenditures - Budget and Actual (Budgetary Basis)
0
92
Capital Projects Funds:
0 Combining Balance Sheet 96
0 Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 98
ii
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1994
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I a Combining Statement of Changes in Assets and Liabilities 1
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I a Schedule of General Fixed Assets by Function 1
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I Schedule of Annual Debt Service Requirements 1
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1 TABLE OF CONTENTS (CONTINUED1
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Proprietary Funds:
Enterprise Funds:
Combining Balance Sheet 1
Retained Earnings 1
a Combining Statement of Cash Flows 1
Combining Statement of Revenues, Expenses and Changes in
Internal Service Funds:
Combining Balance Sheet 1
Retained Earnings 1
0 Combining Statement of Cash Flows 1
Combining Statement of Revenues, Expenses and Changes in
Fiduciary Funds:
Agency Funds:
Account Groups:
General Fixed Asset Account Group:
a Schedule of Changes in General Fixed Assets by Function 1
0 Schedule of General Fixed Assets by Source 1
...
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1994
TABLE OF CONTENTS (CONTINUED)
W
STATISTICAL SECTION:
(Not covered by Independent Auditors’ Report)
General Expenditures by Function, Last Ten Fiscal Years 12E
0 General Revenues by Source, Last Ten Fiscal Years 128
0 Ratio of General Bonded Debt to Assessed Valuation and Net
Bonded Debt Per Capita, Last Ten Fiscal Years 130
0 Computation of Legal Debt Margin 131
0 Schedule of Direct and Overlapping Bonded Debt 132
0 Ratio of Annual Debt Service for General Bonded Debt to Total
Governmental Expenditures, Last Ten Fiscal Years
Water Enterprise - Revenue Bond Coverage, Last Ten Fiscal Years
1 33
0 1 34
0 Demographic Statistics, Last Ten Fiscal Years 136
0 Schedule of Assessed Valuation, Last Ten Fiscal Years 138
0 Construction and Business Activity, Last Ten Fiscal Years 140
0 141
0
Property Tax Levies and Collections, Last Ten Fiscal Years
Special Assessment Billings and Collections, College Boulevard
Assessment District, Last Eight Fiscal Years 142
0 Principal Employers, 1993-94 143
0 Principal Taxpayers, 1993-94 144
0 Miscellaneous Statistical Information 145
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September 23, 1994
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD
Carlsbad, California
1993-94 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETER OF TRANSMITTAL
We are pleased to present the 1993-94 Comprehensive Annual Financial Report of the City
Carlsbad to the City Council and the Crty Manager. This report includes financial statements
the City, the Housing Authoriiy of the City of Carlsbad, the Parking Authority of the C;tv
Carlsbad, the Carlsbad Public Improvement Corporation, the Carlsbad Redevelopment Ager
and the Carlsbad Municipal Water District, as well as the opinion of our independent auditc
Conrad & Associates. The completion of this independent audit is an important part of the tc
financial management program for the City of Carlsbad.
The information found in this report is provided by management to the Council and the put
to assist those interested in understanding the fiscal condition of the Clty as of June 30, 19!
Responsibility for both the accuracy of the data, and the completeness and fairness of 1
presentation, including all disclosures, rests with the City. To the best of our knowledge a
belief, the enclosed data are accurate in all material respects and are reported in a manr
designed to present fairly the financial position and results of operations of the various funds a
account groups of the City of Carlsbad. All disclosures necessary to enable the reader to gi
an understanding of the government’s financial activities have been included. 8
Backqround
Carlsbad is located about 35 miles north of the City of San Diega on the southern Caiifori
coast. The City is governed by a five member City Council under the Council/Manager form
government. Carlsbad is a general law city incorporated in 1952. The City covers about
square miles and has a population of 67,900. Industries in the area include a major regioi
shopping center, 18 auto dealers, 24 hotels offering 1,884 rooms for tourist lodging, aerospa
manufacturing, electronics, golf apparel and equipment manufacturers, several business and lis
industry parks, and numerous land developers building single and multi-family housing in
variety of community settings.
1200 Carlsbad Village Drwe Carlsbad, CA 92008-1 989 - (619) 434-2867 FAX (619) 434-1 9(
Services Provided bv the City
The Clty provides the full range of services normally associated with a municipality includins
police, fire, parks and recreation, library, planning and zoning, building and engineering, variou:
maintenance services and administration. The Ctty provides water services through the Carlsbac
Municipal Water District, a subsidiary district of the City. Ctty Council serves as the Board o Directors for the Carlsbad Municipal Water District. Solid waste collection is provided througt
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 resident3
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 475 low and moderate income
families with housing assistance. The City’s literacy program, funded by the General Fund,
provides adult education to local area residents. Older Carlsbad residents receive assistancE
through the City’s senior citizen programs. Also, the City provides major support for the
Convention and Visitors Bureau operated in cooperation with the Carlsbad Chamber oi
Commerce. The City supports various service agencies such as the Women’s Resource Center,
YMCA and other agencies providing social services to Carlsbad residents. Finally, the City has
reserved over $300,000 for support of the arts, art programs, and the purchase of works of art.
Sianificant Events and Accomdishments
During 1993-94 the City experienced many significant events and accomplishments that may not
be evident from a review of the financial statements. Some of the more important events are
shown below,
Balanced Budget - One of the most significant accomplishment this year was again successfully
balancing the General Fund budget. General Fund revenues were impacted downward when
the State of California adopted its budget. Property taxes were again diverted from the City’s
General Fund to the State for school funding. To help offset the loss this year, the State
allocated some one-time savings back to the City through the vehicle license fees and there was
an extension of the statewide half-cent sales tax to be spent on public safety services. The net
loss to the City was approximately $600,000. Adding to the challenge of balancing revenues with
expenditures was an unprecedented net decrease in assessed valuation which was attributable
to declining property values and property reassessments. The City responded by freezing staff
levels, lowering maintenance and operating expenses, deferring projects, and fewer capital
purchases. Through these efforts, the City was able to keep the General Fund expenditures in
line with the revenues and $2.3 million under budget.
Awards for Excellence - In late 1994 the League of California Cities announced that Carlsbad
would receive three Helen Putnam Awards for Excellence. The California Cities Helen Putnam
California cities to their residents and business community. Carlsbad will receive the awards for
its programs in the areas of environmental quality, economic and community development, and
enhancing diversity in the workplace and community.
Environmental quality was recognized for a plan to provide habitat for endangered species while
also allowing development of a master planned project and construction of a major road. The
Helen Putnam economic and community development award recognized the City and State
cooperative partnership, together with other local agencies and the public and private sector, to
Award for Eixcellence seeks to recognize the achievements and unique contributions made by
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promote Carlsbad for the Leg0 theme park. After a nationwide competition, Carlsbad w
selected for the first Leg0 theme park in the nation. A grand prize award was granted ‘
enhancing diversity in the workplace and community through the special library service to t
City’s Spanish-speaking residents. The Centro de lnformacion provides information about c
services, health care, motor vehicle regulations and many other issues while providing childr
a positive, safe learning environment.
General Plan Update - After several years of public review, including town hall meetings a
community forums to receive citizen input, City Council approved the first complete General PI
evaluation since the 1970’s. All elements of the General Plan were updated, eleven elemer
were combined into eight, and the complete plan reformatted for consistency.
Economic Development - The City’s economic development program goal is to achie
economic growth and stability for the Ctty through proactive efforts to attract targeted industri
to provide a strong economic base. Staff continued work on a strategic plan, with much oft
effort in 1993-94 reUated to attracting biotech industries and the potential development
Carlsbad Ranch which includes a major hotel, golf courses, gemology institute, and a then
park.
Affordable Housing - In 1993, Council adopted an inclusionary housing program which requirc
City Council also added to the funding and future construction of affordable housing in Carlsbi
with the adoption of inclusionary housing fees. Developers may pay fees instead of constructii
affordable units if all development approvals were in place prior to the ordinance or six or few
units are to be constructed. By the end of fiscal year 1993-94, affordable housing resew
totaled $240,000.
In addition, the development and financing of La Terraza, an affordable housing project, beg,
this year and is scheduled for completion in 1995. La Terraza will provide 344 housing un
affordable to low and very low income households. The project will be constructed in t
southwest quadrant of the City and is located near shopping and transportation. Many fundii
sources are required with private financing joined with Redevelopment Agency low and moderz
tax increment funds and federal community development block grant loans. La Terraza will me
the affordable housing requirement of one of the City’s major land developers and may be us
to satisfy the affordable housing requirements of other off-site developers.
Construction of Capital Projects - The City’s aggressive capital building program picked I
again in 1993-94 with an outlay of approximately $14 million. Lower development revenues I(
to project phasing and moving some planned projects to future years. During the last nine yea1
Carlsbad expended more than $1 22 million for capital projects including major stree
community parks, a senior center, a civic facility for police and fire, fire stations, main library, ai
sea wall and bluff protection. This dedication to improving the infrastructure of the City
expected to continue into the foreseeable future as the City implements its long range capi
improvement program.
Several major road construction projects were completed in 1993-94 including the Interstz
5/Palomar Airport Road interchange, and the enhancements to Carlsbad Village Drive leading
the downtown Village area and local beaches. Construction continued on Palomar Airport Ro
East and El Camino Real, a vital circulation link to northern San Diego County and a joint eff
of Carlsbad and two neighboring cities.
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that a minimum of 15% of all future residential units are affordable to lower income householc
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Wetlands Restoration - Batiquitos Lagoon, one of the City’s three lagoons to the Pacific Ocear
began its wetlands restoration in 1994. The project took many years of planning and desigr
overcoming lawsuits, and obtaining numerous state and federal agency approvals. The threl
year wetland restoration project will dredge the lagoon and restore fish and wildlife habiat. t
channel and off-shore jetties will be constructed to restore full tidal flushing and nesting areas fo
various species of birds will be built. As mitigation for its recent expansion, the Port of Lo:
Angeles is completely funding the $30 million construction project.
Habitat Management Plan (HMP) - As stated earlier, the City’s Habitat Management Pian wa:
the recipient of a Helen Putnam Award for Excellence in 1994. The Habitat Management Plar
will provide policies and mechanisms for the protection of wildlife habitat, especially o
endangered, threatened, or sensitive species. Completion of the biological inventory anc
analysis led to identification of candidate preserve areas with linking corridors throughout the
City. Coordination with other agencies and with City development policy documents continues
The HMP is expected to lead to application for a Habitat Conservation Plan under the federa
Endangered Species Act. Coordinating with the City’s HMP, a draft Habitat Conservation Plar
was prepared by a major developer in the southeast quadrant of the City. Council authorizec
submission of the plan to state and federal agencies and its future implementation will preserve
many listed and threatened species.
Geographic Information System (GIS) - Development of a parcel-based Geographic Information
System (GIS) continued in 1993-94. GIS contains base layers of parcel, roadways, and address
information and is used by City departments to provide more efficient safety and public services,
monitor growth, and allow financial and land use projections. In 1993-94, GIS was utilized for
initial evaluation of Carlsbad Ranch property including land use and ownership as well as
engineering and environmental constraints analyses. GIS provided analysis services and
mapping data to finance, safety services, and community development departments. In addition,
GIS provided land use, topography, and mapping information for the Habitat Management
Program.
Financial Statement Format
This report is designed to provide both summarized and detailed information on the operation
of each of the City’s funds. The report is organized as follows:
Financial Section - This section contains the combined or summarized financial
statements for all funds as well as the notes to the financial
statements.
This section provides more detailed information on the
activity within each fund including revenues, expenditures,
changes in fund balances, comparisons to budget figures and
other related data.
This section provides data on the City’s fiscal activity over the
past ten years including revenues, expenditures, debt,
assessed value, and demographic information.
Supplemental Data -
Statistical Information -
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Accountinq Svstem and Budqetary Control
The City's accounting system is designed around a few basic principles.
(1) The City is not one single entlty. It is the total of many entities, each with its separz function and legal restrictions on the use of resources. In the private sector, a corporati
may have many "subsidiaries" which make up the parent corporation. In the public sect1
a city government may have a variety of "funds" that provide the basis for separatc
recording the financial data related to a specific activity. A fund is an accounting entlty w
a complete set of self-balancing accounting records. Each fund has been establish
because of some restriction on the use of resources received by that fund. This rep1
includes the transactions of all entities over which the City Council of the City of Carlsb
has authority (as defined by the Governmental Accounting Standards Board).
(2) The City's accounting system operates on a modified accrual basis for all governmental a agency type funds. Governmental funds include the General, Special Revenue, DE
are recorded when received in cash; b) revenues are accrued when they are bc
measurable and collectable within the accounting period or soon enough after the end
the period to pay liabilities of the period; and c) expenditures, other than interest or lor
term debt, are recorded when liabilities are incurred.
(3) The proprietaw fund types (the Enterprise and Internal Service Funds) use the accn method of accounting. Revenues and expenses are recorded when earned or incurrc
respectively.
Internal controls exist within the accounting system to ensure safety of assets frc
misappropriation, unauthorized use or disposition, and to maintain the accuracy of financ
record keeping. These internal controls must be established consistent with sou
management practices based on the cost/benefit of the controls imposed. The cost o'
control should not be excessive in relation to its benefit as viewed by City manageme
The internal controls in existence within the City's system are sufficient to ensure in
material aspects both the safety of the City's assets and the accuracy of the financial recc
keeping system.
Budgetary control is maintained through monthly reports on all revenue and expenditi
accounts as well as quarterly reports summarizing the financial position of the City. T
City Council has the authority to control the budget through adoption of a formal bud!
at the beginning of each year and by amending the budget as necessary through the ye
Expenditures should not exceed budgeted figures. All appropriations expire at year e
unless specifically carried into the new fiscal year by Council action. The Carlsb
Municipal Code requires that the Financial Management Director annually prepare a bud!
for the City Manager showing estimated revenues and expenditures.
Service and Capital Projects Funds, A modified accrual system is one where a) revenu
(4)
(5) e
Total Citv ODerations
During 1993-94 the City staff of 477 full-time employees provided a complete range of C
services to the 67,900 residents and many businesses in Carlsbad. Throughout most of
history, Carlsbad has had the benefit of working with revenues sufficient to meet anticipal
expenditures; however, the 1990's show a reversal of this trend. Revenues stopped growing a
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state legislation resutted in new mandatory expenditures as well as the loss of revenues. Ove
the past four years, Carlsbad has made every effort to maintain service levels through the deferrt
of projects and the management of vacant staff positions.
Although Carlsbad entered 1993-94 with a balanced budget, revenue estimates were revisec downward after the State adopted its budget. General Fund and Redevelopment Agency werc
impacted by the mandated transfer of property taxes to the State and recessionary influence!
significantly reduced remaining property tax revenues. Budget reductions were accomplishec
by continuing the hiring freeze which allowed the filling of only the most necessary positions
Each department held the line on operating and capital equipment expenses with minima
impacts on programs and service levels. The close of 1993-94 showed the results, with ar
excess of revenues over expenditures in all fund types except debt service and special revenue,
where reserves were utilized for long-term projects.
Spending on all City programs totaled $88 million, an increase of $9.5 million from 1993-94. The
increase is primarily due to land purchases and construction costs on several major capital
projects. Revenues for 1993-94 totaled $90.3 million, an increase of about $7.7 million or 9%
more than last year’s total of $82.6 million. The major factors for the revenue gain are new
costs of purchased water.
Carlsbad is entering 1994-95 in a fiscally sound position due to City Council’s rapid response to
decreasing revenues as a result of the recession. The general outlook for the next five years will
be challenging, matching slower tax base growth with financial requirements to meet the demand
for services.
The following report summarizes the revenues and expenditures (or expenses) for the City of
Carlsbad for the fiscal year ended June 30, 1994.
developer fees for future road construction and the increase in Water rates to recover escalating
Revenue from All Fund Tvpes
(in thousands)
1993-94 over %
1993-94 1992-93 lunder) 1992-93 Chancre
General Fund $38,763 $39,709 $(946) (2.4)%
Debt Service Funds 2,197 2,083 114 5.5
Internal Service Funds’ 6.789 6,570 21 9 3.3
Special Revenue Funds 7,346 7,i 49 1 97 2.8
Capital Projects Funds 13,933 9,174 4,759 51 -9
Enterprise Funds’ 21,231 17,895 3,336 18.6
TOTAL RRlENUES $90,259 $82,580 $7.679
(’I Includes operating and non-operating revenues
9.3% =
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ExDendkures (or ExDenses) All Fund Tvpes
(in thousands)
1993-94 over %
1993-94 1992-93 lunderl 1992-93 Chanae
General Fund $36,383 $36,752 $(369) (1 .O)% Special Revenue Funds 7,260 5,421 1,839 33.9
Debt Service Funds 5,220 4,657 563 12.1
Enterprise Funds' 19,094 17,355 1,739 10.0
Internal Service Funds' 6,218 5,978
Capital Projects Funds 13,805 8,275 5,530 66.8
4.0
12.2%
- 240
TOTAL EXPENDITURES $87,980 $78,438 $9,542
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(') Includes operating and non-operating expenses I General Governmental Functions
The General Governmental function includes the operations of the General, Special Revenu
Debt Service and Capital Projects funds. During 1993-94 revenue from all Governmental func
totaled $62.2 million, an increase of $4.1 million from 1992-93; expenditures totaled $62.7 millioi
up $7.6 million from Last year. A brief look at these numbers on a fund-by-fund basis is sho\n
on the following pages.
General Fund
The City's General Fund is used to record all revenues and expenditures not specifical
restricted by law or Council policy. Major sources of revenue include property tax, sales ta
licenses and permits, and charges for services. Categories of expenditures include police ar s fire services, libraries, parks, street maintenance, and administrative functions.
The following table summarizes General Fund revenues by major category for 1993-94 and 199,
General Fund Revenues 8 (in thousands)
I; 1993-94 1992-93 lunder) 1992-93 Chanae
1993-94 over %
Taxes $26,511 $26,026 $ 485 1.9%
Licenses & Permits 1,822 1,725 97 5.6
State Subventions 2,862 2,702 160 5.9
Charges for Services 3,070 2,835 235 8.3
Fines & Forfeitures 23 1 232 (1) (0.4) Interest Income 1,466 2,094 (628) (30.0)
131.6) Other 2.801 4.095 (1.2941 TOTAL $38.763 $39,709 !§ (946) , (2.31%
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In 1993-94 the City of Carlsbad again felt the effects of the recession in its General Fun
revenues which were down by $946,000 compared to 1992-93 revenues of $39.7 million, Genert
Fund revenues were originally budgeted for 1993-94 at $39.2 million. Estimated revenue
decreased to $38 million to incorporate State budget transfers and the continued impact of th
recession on property taxes. Actual receipts came in $783,000 above the revised budge
estimate and totaled $38.8 million. Major revenue categories are as follows:
e Properhr Tax Revenue - $1 1.1 million
Property taxes decreased $1.5 million from 1992-93. For the second year, the Statz
mandated a reallocation of property taxes. In 1993-94, the reallocation diverted $1 .:
million, or 10% of last year’s property tax revenues, from the City to the State. Duz
to the two-year reallocation of property taxes, the City’s annual property tax revenuz
base has been permanently reduced by a total of $2.5 million.
Coupled with the diversion of property tax revenue to the State, for the first time the
City experienced a net decrease in assessed valuation. Property valuation declinec
to $6 billion in 1993-94, a 1.1% decrease from last year’s $6.1 billion. Declininc
property values and reassessment of vacant land and commercial/industriaI propert)
reflected the poor economy in reduced property tax collections.
Sales Tax Revenue - $10.8 million
Sales taxes increased $1.7 million over 1992-93, the result of a full year of Price Club
operations, more new car sales, and increased sales by large department stores.
Included in these revenues is the addition of $275,000 in Proposition 172 sales taxes
to fund public safety services.
Transient Occupancv Tax Revenue - $3.2 million
Transient occupancy tax (hotel room tax) revenues increased $54,000 in 1993-94.
The small boost to TOT revenue accrued during the second half of the year,
reflecting a gradual increase in travel and tourism in the area.
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0 Vehicle License Fee Revenue - $2.6 million
Revenue from vehicle license fees increased $200,000 this year. Vehicle license fees
are paid to the State in lieu of a personal property tax on vehicles and distributed to
the City based on total population. Some of the increase is attributable to the 1.1 %
City population increase, and some is due to a one-time only allocation of certain
monies to the City from the State. This allocation was done as part of the State’s
budget package.
Development Related Revenues - $1.8 million
Development related revenues rose $60,000 in 1993-94, with building permits issued
in the last quarter of the year providing the small growth spurt. Declining planning
fees reflect the large inventory of planned development awaiting an economic upturn.
Fewer construction renovations and remodels resulted in the City receiving lower
license taxes on new construction. As the economy recovers, development
continues to improve; a total of 230 building permits were issued during 1993-94,
more than three times as many as the previous year.
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0 Interest Income - $1.5 million
Revenue generated by the City’s investments declined $628,000 from 1992-93. T
decrease is due to lower yields on investments and transferring interest on contraci
deposits to another fund.
Other Revenue - $28 million
The $1.3 million decline in other revenue is due to the prior year’s reimbursement
surplus retirement funds.
Total General Fund expenditures are summarized in the following table:
General Fund Expenditures
(in thousands)
1993-94 over %
Cateaory 1993-94 1992-93 lunder) 1992-93 Chanae
General Government $4,641 $4,998 $(357) (7.1)%
Public Safety 15,747 15,342 405 2.6
Library and the Arts 2,682 2,555 127 5.0
Community Services 6,999 7,209 (21 0) (2.9)
Community Development 6,314 6,648 (334) (5.0)
TOTAL $36,383 $36,752 $(3691 J1 .O)%
The City of Carlsbad adapted to the recession and corresponding declining revenues
decreasing expenditures. In order to insure that the General fund would end the year balancc
several actions were taken. The General Fund budget was revised downward to compens:
for the reduction in expected property tax revenues and to match expenses with lowered reven
estimates. Funding was eliminated or reduced for nine unfilled positions, certain strt
maintenance programs were transferred to the gas tax fund, and the Council contingency fu
was significantly reduced. Other expenditure reductions were accomplished by not replaci
many employees as vacancies occurred, reducing the use of consultants and closely monitori
other operating costs.
Through efforts in every department, the City was able to hold its General Fund expenditui
down to $36.4 million. This equates to $369,000 decrease from 1992-93 expenditures and 01
a 7% reduction in General Fund expenses during fiscal year 1991-92. Significant changes
departmental expenditures were as follows:
o Public Safetv
Spending on public safety programs totaled $1 5.7 million, up $405,000 or almost 1
from 19912-93. Police field operations, investigations, and technical services plus 1
Fire Department’s suppression division showed increased expenditures over 1992-’
In spite of lower General Fund revenues, there has been no decrease in the budg
or in the level of service provided by the City’s public safety departments.
0 Communitv Development
Community Development program spending decreased $334,000 or about E
Because of declining development, Community Development was able to utilize C
staff instead of outside consultants for planning and engineering plan-checking i
studies. Additional savings were achieved through employee attrition.
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0 Libraw and the Arts
Library and cultural arts spending rose $127,000, or 5% from 1992-93. The libral
program experienced increases in staffing costs along with higher liability insuranc
and data processing expenses. .
0 Communitv Services
Community Services decreased $21 0,000 or 3% from 1992-93. The new Communit
Services department corn bined ctty maintenance functions with parks an1
recreational activities. Management and administrative savings were achieved wit1
the combined department. Lower street maintenance costs were recorded in thc
General Fund as major street maintenance programs continue to be funded directl-
through the gas tax fund.
0 General Government
Spending in general government and administrative programs decreased b!
$357,000, or 7% from 1992-93 because of risk management staff reassignments
employee vacancies, and fewer Citywide training programs.
SPecial Revenue Funds
The City’s Special Revenue Funds, which account for the collection and use of special 01
restricted revenues, received $7.3 million in total revenue in 1993-94. This is an increase 01
$197,000 or almost 3% over last year. Intergovernmental revenues declined in 1993-94 as the
City received fewer police asset forfeiture funds from the sale of seized assets related to drug
activity; however, the city received additional federal funding of the low and moderate income
housing programs. Charges for services rose mainly due to the implementation of the affordable
housing inclusionary fee.
Special Revenue Funds
Revenues
(in thousands)
1993-94 over %
Cateqonr 1993-94 1992-93 (under) 1992-93 Chanqe
Taxes $1,508 $1,425 $83 5.8%
Charges for Services 1,930 1,651 279 16.9 Intergovernmental 3,262 3,326 (64) (1.9)
Interest Income 433 541 (1 08) (20.0)
Other 21 3 206 - 7 3.4
TOTAL $7,346 $7.149
Expenditures from the Special Revenue Funds support a wide variety of programs and projects.
Some of the major uses of funds include:
2.8% $197 -
0 Community service programs such as street lighting, landscaping services for street
trees and median maintenance. Major street maintenance programs include street
sweeping, sidewalk repairs, and street overlay sealants.
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0 Cultural programs, including grants from the California Library Services Act ar
California Arts Council, and the Civic Arts program.
Special programs such as the Police Asset Forfeiture program, Bilingual Libra
program, and Adult Literacy program.
Welfare programs such as the HUD-sponsored Carlsbad Housing Author@ renl
assistance program and Senior Nutrition program.
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Expenditures
(in thousands)
1993-94 Over %
Cateaorv 1993-94 1992-93 lunder) 1992-93 Chanae
Public Safety $ 605 $ 393 $ 212 53.9%
Housing & Welfare 3,135 2,793 342 12.2
Library & Arts 520 448 72 16.1
Community Services 3,000 1,787 1.21 3 67.9
TOTAL $7,260 $5,421 $1,839
Spending in Special Revenue Funds totaled $7.3 million in 1993-94, an increase of $1.8 millic
or about 34% above 1992-93. Increased expenditures in the Community Services category refle
increased street maintenance utilizing gas tax funds and higher expenditures in the chanr
maintenance special benefit district, while increased HUD housing allocations are shown und
Housing and Welfare.
33.9% -
Debt Service Funds
The City’s Debt Service funds record the payment of interest and principal on the current portic
of outstanding debt. At June 30, 1994, the total debt payable from non-enterprise source
excluding obligations under capital leases, was $31.4 million, comprised of Parking Authority ai
Hosp Grove Certificates of Participation, College Boulevard 191 5 Act Assessment District bonc
and Redevelopment Tax Allocation bonds. In 1993-94, the City of Cailsbad Housing at
Redevelopment Commission issued $1 5.5 million in tax allocation bonds. The bonds were us(
to advance refund the $1 2 million 1988 bond issue and to provide money to finance redevelo
ment activities within the project area. No general obligation bonds are outstanding at June f
Debt Service Funds
Revenues
(in thousands)
1993-94 over % - Cateqorv 1993-94 1992-93 lunder) 1992-93 Chanqe
Taxes $1,976 $1,745 $23 1 13.2%
Interest 221 338 m 134.6)
TOTAL $2,197 $2.083 $1 14 5.5%
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Debt service revenues totaled $2.2 million, an increase of $1 14,000 from 1992-93. High€
assessments were placed on property tax rolls for the College Boulevard Assessment Distric
since surplus construction funds were utilized for a portion of 1992-93 debt service expenditure:
Debt Service Funds
Expenditures
(in thousands)
1993-94 over %
Category 1993-94 1992-93 lunderl 1992-93 Chanae
Principal $ 765 $1,645 $(880) (53.5)%
Interest 2,163 2,755 (592) (21 5) Other 2,292 257 2,035 791 .a
3L!s3 - 12.1% TOTAL $5,220 $4,657
Debt related expenditures rose $563,000 in 1993-94. Lower principal and interest payments are
due to refunding the 1988 Redevelopment Tax Increment bonds and the 1992-93 College
Boulevard bond calls using surplus construction funds. The other category reflects bond costs
and funds placed with an escrow agent for the 1988 Redevelopment bond refunding. The
mandated Redevelopment Agency payment to the State is also shown under debt service
expenditures.
CaPital Proiects Funds
A capital project fund is one that accounts for the receipt and disbursement of monies that are
restricted for the acquisition or construction of capital facilities (other than those financed by
enterprise funds). Capital projects funds for the City of Carlsbad include those supported by the
City’s public facilities fees, community facilities district (Mello-Roos) taxes, park in-lieu (park
development) fees, drainage fees, traffic impact fees, bridge and thoroughfare district and other development fees, county sales tax funds, and general funds earmarked for capital purposes in
the Capital Construction Fund. The capital projects supported by the City’s Redevelopment
Agency are also included in this group.
Capital Projects Funds
Revenues
(in thousands)
1993-94 Over %
Cateaory 1993-94 1992-93 lunder) 1992-93 Chanae
Taxes $2,043 $1,813 $ 230 12.7%
Intergovernmental 4,728 3,781 947 25.0
Charges for Services 4,182 1,239 2,943 237.5
Interest 1,876 1,893 (1 7) (0-9) Other 1,104 448 656 146.4
TOTAL $1 3,933 $9,174 $4 f 759 51,9% ./
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Increased federal funding for community development block grants account for the rise
intergovernmental revenue, with grant funding used for several affordable housing projects. Mc
charges for services reflect the City’s higher rate of development and a new fee progri
implemented in advance of the proposed Mello-Roos to construct Rancho Santa Fe road. In t
other category are payments made by another agency to fund required road improvements.
Capital Projects Funds
ExDenditures
(in thousands)
1993-94 over %
Category 1993-94 -1 992-93 {under) 1992-93 Chanqe
General Government $ 872 $1,083 $ (211) (1 9.5)%
Capital Projects 12,933 7,192 5,741 79.8
66.8% TOTAL $1 3,805
Spending on capital projects totaled $13.8 million. Much of the $5.5 million increase is due
continuing construction on several major street projects. Fiscal year 1993-94 represents the ter
year of the City’s major construction effort which has provided more than $136 million
improvements. Projects planned for 1994-95 will continue this trend with $51 million of nl
capital projects budgeted in the new year. The City Council continues to set a high priority
the construction of quality infrastructure improvements.
Some of the key capital projects under construction or completed during this year include:
- $5,530 - $8,275 -
0 Palomar Airport Road East and El Camino Real - Construction continued on this v
circulation link in 1993-94. The project includes intersection improvements, ro
widening, bicycle lanes, and waterline expansion. These improvements will upgra
a major circulation system through the industrial-commercial corridor and are a ja
effort of {Carlsbad and the neighboring cities of Vista and San Marcos.
a Freewav Interchanges - Expansion of the three Interstate 5 freeway interchanges \
provide improved circulation at critical connection points to City streets. The Palon
Airport Road/l-5 interchange, built in cooperation with the state transportation ager
(CALTRANS), was completed in 1993. Preliminary design work continues on the
Costa Avenue freeway interchange, with construction scheduled to begin on 1
Poinsettia Avenue interchange in late 1994.
Streetscape Phase V and Tamarack Avenue - Construction on Carlsbad Village Dr
and Tamarack Avenue was completed in 1993-94. From the freeway, the roi
provide access to the Pacific Ocean and into the Village area. Street widening, stc
drain improvements, and undergrounding of utilities enhance safety and furt
beautliy City streets.
Affordable Housinq - The City commitment to providing its fair share of afforda
housing is evidenced by the purchase of land for La Terraza, a 344 unit apartm
project. The joint project utilized developer, property tax increment, federal t
private funding. Redevelopment low and moderate set aside funds were a
designated for the Laurel Tree apartments project which is currently under revie
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0 BatiQuitos Laaoon - Actual restoration to the wetlands at Batiquitos Lagoon bega in 1984, the CUhlinatiOn Of Several years of design, planning and obtaining state an
federal agency approvals. The three year wetland restoration project will dredge th.
lagoon and restore fish and wildlife habitat. A channel and off-shore jetties will bc
constructed to restore full tidal flushing and nesting areas for various species of bird!
will be built. The $30 million project is completely funded by the Port of Los Angele
as mitigation for its recent expansion.
Enterprise Operations
The City of Carisbad manages water, sewer, solid waste, and the proposed golf course as
Enterprise Fund operations. An enterprise fund is one where most or all of the costs involvec
are supported by user fees. Within these funds the City uses many of the accounting practices
applicable to commercial business including the recording of depreciation on fixed assets anc
the allocation of overhead costs from support services. User fees are set on an annual basis tc
cover both operating costs and debt service needs.
The Carlsbad Municipal Water District (CMWD), established as a subsidiary district to the City in January 1990, is included as an enterprise fund of the City. CMWD and City operations were
merged in 1991 -92, with all district positions joining City employment.
Enterprise Funds
Total Operating and Non-Operatinq Revenues
(in thousands)
1993-94 over %
Cateaotv 1993-94 1 992-93 lunder) 1992-93 Chanqe
CMWD $15,189 $1 2,268 $2,921 23.8%
Golf Course 106 a7 19 21.8
Sewer 5,814 5,413 40 1 7.4
Solid Waste 122 127 (5) (3.9)
Revenue in the enterprise funds totaled $21.2 million, UP $3.3 million over 1992-93. 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.
TOTAL $21,231 $1 7,895 $3.336 18.6%
Enterprise Funds
Total Ooeratinq and Non-Ooeratina Expenses
(in thousands)
1993-94 over %
Cateqory 1993-94 1992-93 junder) 1992-93 Chanae
CMWD $1 3,212 $1 2,304 $ 908 7.4%
Golf Course 778 0 778 --
Sewer 4,992 4,897 95 1.9
Solid Waste 112 1 54 0 (27.3) - 10.0% TOTAL $1 9,094 $17,355 $1,739
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Expenses in the Enterprise Funds totaled $19.1 million, up $1.7 million over 1992-93. CMV expenses rose primarily because of the higher cost of wholesale water and a 6% increase
water consumption. During this same period the number of accounts provided with water and,
sewer services grew by 2.7% to 17,768 customers.
The golf course fund incurred $778,000 in expenses in 1993-94. These expenses represent cot
for engineering and design at a location no longer under consideration and are not transferrat
to the new golf course site.
In 1989, the City joined with three other agencies to sell $33.5 million of sewer revenue bonc
These bond funds, along with funding from two additional agencies, financed the expansion
the Encina Wastewater Facility. The expanded facility should provide sufficient wastewa
treatment capacity to the year 2005. Carisbad’s portion of the outstanding bonds is $1 2.4 millic
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Internal Service Funds
InUernal Service Funds are used to account for services provided by a City department to 0th
City departments. As with an Enterprise Fund, the source of revenue is user fees charged to tl
departments receiving the service.
SELF-INSURANCE PROGRAM-WORKERS’ COMPENSATION & GENERAL LIABILITY
The City has been self-insured for Workers’ Compensation since September 1978 and the activ
for this program is recorded in the Workers’ Compensation Self-Insurance Internal Service Fur
Workers’ compensation claims expense for 1993-94 amounted to $71 3,000 compared
$639,000 in 1992-93, an increase of $74,000. Claims expense includes all costs incurred by t
City’s third party workers’ compensation administrator; some of this year’s increase in costs
attributable to legal costs while defending against certain claims. The estimated claims payat
at year-end were $1 million, no change from 1992-93. Working capital at June 30, 1904 is $1 I million.
The General Liability Self-Insurance Fund was established near the end of 1980-81. Clair
expense and other related costs for 1993-94 totaled $1.1 million, down $33,000 from 19924
Decreased claims more than offset staffing costs charged directly to the fund. The estimat
claims payable at year-end were $617,000, down $254,000. The City is a member of t
California Municipal Insurance Authority risk-management pool which covers most loss
exceeding $500,000, with catastrophic losses covered by additional excess liability insuranc
Working capital totaled $1.7 million at June 30, 1994. Of this amount, $1.5 million is required
be retained in the fund under the City’s contract with the Insurance Authority.
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, is
important component of the program. The City’s current policy for funding the replacement
insure that there will be sufficient funds available when the equipment needs to be replacf
Useful lives of vehicles have been extended over recent years as a cost savings measu
however, large vehicle purchases are planned for the near future. Vehicle purchases totalec
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fleet equipment is to set aside a certain amount of money each year in a replacement fund
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$51 6,000, an increase of $233,000 over the previous year. Fleet Management annual expense
during 1993-94 were $1.8 million, and at year-end working capital was $3.5 million.
The Ctty also operates a health insurance internal service fund for collecting premiums, payinl
the insurance carrier, and holding reserve funds. At June 30, 1994, total health insuranc
working capital totaled $1.3 million.
The City’s Data Processing internal service fund collects revenues and expenses related to thl
providing of data processing services to the City. At year-end, working capital totaled $61 7,OOC
Aaencv Funds
The City uses Agency Funds to account for assets held by the City for other individuals, entitie!
or governments. Typically these funds relate to contractors’ cash performance bonds, employec
payroll deductions, or deferred compensation accounts.
The City held a total of $18.3 million in Agency Funds as of June 30, 1994, compared to $18.;
million at the end of 1992-93. The increase is due to the deposit of an additional $1 million intc
the Crty’s deferred compensation plans, offset by a decrease of approximately $1.7 million it
contractors and miscellaneous deposits.
Cash Manaqement
The City Treasurer is charged with the responsibility of safeguarding the City’s assets, receivinc
all payments due the City and investing all inactive funds. During this year the City Treasure1
earned about $6.5 million in interest on investments in all fund types from instruments yielding
up to 9.12%, compared to earnings of $7.5 million during 1992-93. Funds are invested in various
types of instruments as shown below. At June 30, 1994, the Treasurer had 100% of all available
funds invested. The City’s total portfolio at year-end was $136 million. Below is a summary of
cash and investments outstanding as of June 30, 1994:
Amount
Invested
Interest Rates lin millions)
Cash and Deposits 0.00 - 3.59 $ 0.2
Federal Agency Obligations 3.83 - 8.70 47.1
Treasury Issues 3.88 - 6.93 13.8
Corporate Notes 5.45 - 9.00 32.0
Investment Pools 4.26 - 6.45 27.4
Mutual Funds 1.10 - 10.50 14.4
Guaranteed Investment Contracts 8.57 - 9.12 1.4
$1 36.3
As required by State law, the City Council adopted a comprehensive investment policy specifying the type and term of City investments. The policy’s objective is to maintain the level of
investment of all idle funds as close to 100% as possible and to invest in instruments which will
provide the highest return without endangering the basic ttquiremeflts Of Safety and liquidity.
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I Gann Umft - ADwoDriations Subiect to Limit
In 1979, Proposition 4, the "Gann" initiative, was passed. The purpose of this law is to
government spending by putting a cap on the total proceeds of taxes that may be appropn
changes in the Consumer Price Index and state per-capita income. When a city reaches this
excess tax revenue must be returned to the State or citizens through a process of reh
rebates, or other means that may be defined at that time. The Gann limit for the City of Carl3
has increased steadily since 1979 and still provides the City with a comfortable operating ma
In 1991 -92 state law allowed the recalculation of the City's limit with new inflation factors. U
population growth in the City of Carlsbad and growth in State per capita income allowed
Gann limit for 1993-94 to increase to $1 00 million. Appropriations of "proceeds of taxes" was
$30.2 million, thus allowing the City a healthy margin of $70 million.
each year, This limit is increased each year through a formula that takes into cansidea
CITY OF CARLSBAD
PROPOSITION 4 SPENDING LIMIT
VS. APPROPRIATION OF PROCEEDS OF TAXEf I
MILLIONS OF DOLLARS
~__
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
I APPROP OF TAXES El SPENDING LIMIT
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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 Ci’s revenue base.
State and regional economic forecasts show a slow recovery with continued depressed levels
of construction spending over the next several years in the commercial/industriaI area. The
forecast for the San Diego County residential housing market shows a substantial increase
beginning in fiscal year 1995-96. Increased affordabilrty, pent-up demand, and a healthier employment outlook are projected to fuel the rise in new housing construction.
The City will strive to maintain the quality and variety of services which have come to be expected
by the residents and businesses of Carlsbad. However, as demonstrated during the past few
years, the recession has dramatically impacted the City’s ability to improve or increase programs
provided to its citizens despite the continuing demand for such services. In 1993-94, actual
spending in the General Fund declined $3.5 million from amounts expended two years ago. For
the past few years, our capital improvement program has deferred or phased certain projects due
to declining developer fees for construction of those projects and less current revenue for the
operation of the facilities.
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 projects a slow recovery in the
local economy and minimal revenue increases over the next few years. The Ci’s long range
capital improvement program anticipates the construction of more than $500 million in
improvements between now and buildout. Our 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 could 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 develop-
ments 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 infrastructure and service needs.
An outgrowth of this program is a long range capital improvement program which covers the
current year through buiidout of the City. The City’s Growth Management Program was
established by a vote of the citizens in 1986. Under this program, development occurs only
when infrastructure improvements required to serve the development are financed and
constructed as a part of the development. Previously, facilities were scheduled to meet maximum
population expectations; now projects are phased to more closely match incremental growth
demands. Standards have been established in eleven areas including circulation, libraries, fire
protection, parks, drainage, water, sewers, and open space.
The comprehensive Growth Management Financing Program is an important part of growth
management. This program links the infrastructure funding needs of the City and other agencies,
such as schools, together with the needs of development to fund public purpose projects. The
coordinated effort depends on the rational use of Mello-Roos Communrty Facilities Districts,
191 3/1915 Act Assessment Districts and fee programs to finance facilities concurrent with
demand without overburdening the land or home owner.
The proposed Leg0 family theme park, expansion of retail sales facilities, the addition of new auto
dealerships, major discount warehouse outlets, several small commercial centers, and continued
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plans for the construction of major shopping centers as well as the construction of a major hot€
in southern Carlsbad are expected to provide the much needed tax base to finance the growinc
service needs. Further, future commercial/industriaI development in the Palomar Airport Industri:
Park area will add to Carlsbad’s economic health.
The City continues to support its tourist industry with financial support to the Chamber c
Commerce Convention and Visitors Bureau. Realizing that the Pacific Ocean beaches play a
important role, Council continues to appropriate funds to keep the state beach parking free t
all beach users and is constructing additional restroom facilities.
With the completion of the update of the General Plan, City staff will now be working on a
update to the plan’s fiscal impact analysis. This program provides a tool to evaluate financi:
impsications of current and future City policies and decisions as outlined in the General Plan. Th
results of the update will be presented to Council in the future.
Certificate of Award %or Outstandinq Financial ReDortinq
The California Society of Municipal Finance Officers (CSMFO) presented a Certificate of Awar
for Outstanding Financial Reporting to the City of Carlsbad for its comprehensive annual financii
report for the fiscal year ended June 30, 1993. The City has received the award since 1985. W
believe our current report continues to conform to the program requirements. I
Acknowledqments
This report has been a joint effort by many people from many different areas of responsibilit
The dedicated efforts of Cheryl Allen, Assistant Finance Director, and all of the accounting stal
deserve full credit for the preparation and contents of this report. We appreciate Karen Walz an
Dean Votava of Conrad & Associates for the professional way in which the audit of this financii
report was conducted. It has been a pleasure to work with the Conrad & Associates sta
throughout this period.
Respectfully su bmittetl, I %& &L7&-
1
LISA HILDABRAND
Finance Director
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FAUBROOK
CAMP PENDETON
RAMONA
NATlcxucrrY
lMpww Bum
-
CIN OF CARLSBAD
U
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I ELECTED ClTv OFFICIALS
Claude A. Lewis, Mayor
Margaret Stanton, Mayor Pro Tem
Ramona Finnila, Council Member
Ann J. Kulchin, Council Member I Julianne Nygaard, Council Member
i Aletha L Rautenkranz, City Clerk
James M. Stanton, City Treasurer
ADMINISTRATION AND DEPARTMENT HEADS
Raymond R. Patchett, City Manager
Frank Mannen, Assistant City Manager
James F. Elliott, Financial Management Director
Martin Orenyak, Community Development Director
David Bradstreet, Community Services Director
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I Ron Ball, City Attorney
Ruth Fletcher, Purchasing Officer
Lisa Hildabrand, Finance Director
Michael Holzmiller, Planning Director
Lloyd Hubbs, Crty Engineer
Ann Jensen, Human Resources Director
Clifford Lange, Library Director
Dennis Van Der Maaten, Fire Chief
Robert Vales, Police Chief
CHAIRPERSONS, COMMISSIONS AND BOARDS
Laurie Batter Arts Commission
Lu Ann Hall
Paul Vanderpool Cable Television Foundation
Tom Erwin
Peggy Savary Design Review Board
Gordon Bizieff Historic Presefvation Commission
Edward Scarpelli Housing Commission
Claude A. Lewis
Emmett J. Woodward, Jr.
Frank Alshire Parking Authorii
Courtney Heineman
Jim Page Personnel Board
Peggy Savary Planning Commission
George Heard Senior Citizen Commission
Emmett J. Woodward, Jr.
Ed Juchniewicz Sister City Committee
Bud Green Traffic Safety Commission
Richard Alien
Leo Louis Water Commission
Beach Erosion Committee
Citizens Committee to Study Growth
Housing and Redevelopment Commission
Library Board
Parks and Recreation Commission
Serra Cooperative Library System Advisory marc
Underground Utility Advisory Committee
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v) C C 0) 0 0 .- te B - 8 g-2 kg - w .- .- -
CaZifornia Society of
JWunicipa23inance O8iI
Certificate of Award
Outstanding Financkd~porting 1992-
Presented to
City of CarCsbad
%is certi@ate is issuedin recognitiotr afmectingpmjksist& adcriteria in mpotthg wj
@ty in the annd~iidstate~~ andin the udr& cLccMlntings~em+ which th
Fe6ruary28,1994
J Chair, Pmfessional &Tu
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14Wg
Dedkated to E~cehnce in Municipal~mwiaCMiznqemnt Q-w
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CERTIFIED PUBLIC ACCOUN'
1100 MAIN STREET,
IRVINE, CALIFORN
CONRAD
~SOCIATES A PIRTNERSMIP INCLUDING PROFESSIONAL CORPORATIONS n 4)
The Honorable Members of City Council City of Carlsbad, California
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, 1994, as listed in the tal contents. These general purpose financial statements are the responsibility o management of the City of Carlsbad, California. Our responsibility is to express an o on these general purpose financial statements based on ow- 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 accoi principles used and significant estimates made by management, as well as evaluatin overall financial statement presentation. We believe thiat our audit provides a reasc basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fair
all material respects, the financial position of the City of Carlsbad, California as of JIB
1994, and the results of its operations and the cash flows of its proprietary fund types fc
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 pur of additional analysis and are not a required part of the general purpose financial state! of the City of Carlsbad, California. Such information lhas been subjected to the aut procedures applied in the audit of the general purpose financial statements and, ii 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 1
&#ddA5oehJk
I September 23, 1994
MEMBERS OF AlCPA AND CALIFORNIA 82IETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION I
Combined Balauce Sheet - All Frmd Types and Accormt Croaps
June 30. 1994
Governmental Fund 'Itrws
Special Debt capi tr
General Revenue Service 2E!2&2! Assets and Other Debit6
Assets: Cash and investments (note 3) $12,429,930 9,200,598 4,446,280 40,309,! Deferred compensation investments (note 16) - - - -
Receivables: Loans - 1w ,955 - - Taxes 990,022 23,141 22,109 1,' 29,703 - 173,6 - 6,955 ,OOO - Accounts, net 155,622 Spec ial assessment 8 - Other 25,064 - - -
Accrued interest 387,336 128,380 72,446 525.4 Due from other funds (note 4) 711,484 1,199,592 - -
Due from other governments 88,775 46,435 -. 515.6 Advances to other funds (note 5) 11,219,823 - - 1,700,(i Inventory 22,585 Prepaid expenditures - 218,395 - -
Rest r Icted asset 6 !
- - -
- - - - Cash and investments (note 3) Accrued interest - - - -
(notes 6 and 7) - - - - Property, plant and equipment, net
Amount available in debt service funds - - - -
Amount to be provided for retirement of general long-term debt - - - -
Total assets and other debits
Other debits:
saLQauS--a
Liabilities. Eau itv and Ot her Credits
Liabilities: Accounts payable $ 850,728 245,603 - 536,4 Accrued wages payable 2,021 , 359 79,953 - 21.2 Accrued interest payable - - - -
Due to other funds (note 4) - 682,740 - 1,228.3 Advances from other funds (note 5) - - - 12.919,8 Due to other governments - 19,702 - - Estimated claims payable - - - -
Assessments payable - - - -
Current portion of long-term debt (note 10) - - - - Dews1 ts payable 4,550 - - 913.0 Deferred compensation payable (note 16) - - - -
Current liabilities payable from restricted assets - accrued interest payable - - - - Deferred revenue 4,171,101 - 6,955 ,OOO 91,4. Bonds payable (note 10) - - - -
Special assessment debt with governmental commitment (note 101 - - - - Obligations under capital leases (notes 8 and 10) - - - -
Loan payable (note 10) - - - -
Certificates of participation (note 10) - - - -
Installment purchase agreement (note 10) - - - -
Total liabilities 7.047.738 1.027.998 6.955.000 15,710.P
Equity and Other Credits: Investment in general fixed assets - - - -
Contributed capital (note 12) - - - -
Fund ba lance :
Retained earnings:
Reserved (note 11) 7,682,303 2,404,212 4,538,210 3,276.07 Unreserved (note 11) 11,300,600 7,521 989 2.625 24,239.38
I I .. I - - - - Reserved (note 11)
Unreserved (note 11)
Total equity and other credits 18.982.903 9.926.201 4.540.835 27.515.46
Total liabilities, equity and
other credits &z5JwJa---
See accompanying notes to general purpose financial statements.
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1 14.168.854 A!LuJ32 65.545.234 32.120.390 369.002.
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Prmrietarv Fund Tvws Fiduciarv Fund TvDe Account Groups General General Internal Fixed Long-Term Total Enterorise Service Anencv Assets Debt I-r-
11,181,758 - - 124.100. - - 6,991,043 - - 6,991,
107, - 1,047, - - 3,547. - - - - - 6,955,
25 9 - 1,928, 538 , 171 159,906 116,478 -
209 , 924 - - - - 2,121, 1,045 , 990 - - - - 1,696, - - - - - 12.919, 224,897 83,783 - - - 331, - - - - 218,
- 5.194, 9,
100,933,085 3,208,881 - 65,545,234 - 169 , 687,
- - - - 4,54OS835 4,540, - - - 27.579.555 27.579 ,
35,822,053 10,710,092
- - - - - - - 860 - 10,055 3,182,582 6,192
- - c - -
-
5,194,737 - - - 9,646 - - - -
-
- - 3,668, - - 2,507, - - 556,331 - - 556, 209 , 924 - - - - 2,121, - - - - - 12,919,
19, - 1,982,422 - - - 1,982, - - 4,368,867 - - 4,368, 1,107,265 - - - - 1.107, - 7,605, - - 6,991,043 - - 6,991, - - - 472, 2,070,778 - - - - 13,288, - - - - 16,570, OOO 16,570,
- - - - 7 , 290, OOO 7.290,
- - - - 705,390 705 , - 900, 9,571,189 - - - 7,555 ,OOO 17,126, 11.774.729 - - - - 11,774, I 28.295.390 2.467.819 18.290.139 - 32.120.390 111.914 ,
- - - 65,545,234 - 65,545, 81,432.414 6,944,688 - - - 88 , 377,
- - - - - 17,900, - - 43,061,
3,625,085 - - - - 3,625, 38,574 L - 65.545.234 - 257.087 L
8,124 - 1,541,005 426,591 326,429 58,806
- - - - -
321,681 - 6,365,774 -
472,033 -
900,357 - - -
- - -
33,818.251 4.756.347 - - -
118,875.750 11.781.035
147.17- 14.168.854 JiiZ&x€ 65.545.234 32.120.390 369,002. I 27
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CITY OF CABLSBAD
Carabined Stateaent of Reveuues, Expemditures and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30. 1994
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Special Debt Capital Totals General Revenue Service Projects (Memorandm
Revenues : Taxes $26,511,005 1,508,186 1,975,577 2,042,901 32 , 037, ( Licenses and permits 1,822,275 - - - 1,822,; Intergovernmental 28,384 3,262,525 - 4,728 , 399 8,019,. State subventions 2,862,479 - - - 2,862,d mrges for services 3,069,804 1,929,747 - 4,182,263 9 , 181 ,I - - 231 ,I Fines and forfeits 231,454 -
Interest income 1,465,717 433,302 221,226 1,875,882 3.996, 2,393,! Interdepartmental services 2,393,576 - - - Contributions from property Owners - - - 344,851 344.1 Miscellaneous 378.771 212,646 - 758.770 1.350.
Total revenues 38.763.465 7.346.406 2.196.803 13.933.066 62.239 .'
General government 4,641,421 - - 871,680 5.513,l Public safety 15,747,024 604,628 - - 16,351 , f Community development 6,313,757 - - - 6,313 ,i Rousing and welfare - 3 , 135,491 - - 3 , 135,' Library and the arts 2,681,940 520,119 - - 3,202, (
Capital outlay - - - 12,933,253 12,933 ,; Debt service:
Expend i tur es : Current :
eOmrmmi ty services 6,999,321 3 ,OOO,052 - - 9 , 999 ,:
I 765 ,( Principal retirement - I 765,000
Payment to refunded bond escrow agent (note 10) - - 1 , 709 , 777 -
Debt issuance costs - - 489,113 - 489,: - 92.472 - 92.4 State mandated payment - -
- 2,163,;
1 , 709, '
Interest and fiscal charges - - 2,163,228
Total expenditures 36.383.463 7.260.290 5.219.590 13.804.933 62.668.2
Excess (deficiency) of revenues over (under) expend1 tures 2.380.002 86.116 13.022.787) 128.133 1428.:
Operating transfers in - 24,025 1,351,757 6,689,934 8,065 ,i Operating transfers out ( 1,171.055) - (2,610.517) (4,298.644) (8.080.1 Payment to refunded bond escrow
Other financing sources (uses):
agent (note 10) - - (10,964,372) - (10,964.; Proceeds of refunding bonds - - 10,964,372 - 10,964, : Proceeds of bonds, net of discount - - 4.220.728 - 4.220 .'
sources (uses) f1.171.055) 24.025 2,961.968 2.391.290 4.206.2 Total other financing
Excess (deficiency) of revenues and other
financing sources over (under) expenditures and
other financing uses 1,208,947 110,141 (60,819) 2,519,423 3.777.6
Fund balances at beginning of year 17,833,956 9,757,035 4,1601,654 25,036,041 57 ,228, 6
Residual equity transfers in - 60,000 - 31,736 91.7
Residual equity transfers out (60.000) (975) --
Fund balances at end of year S18.982.9039.926.201Aw- 60.965.4
171,736) (132.1 -
See accompanying notes to general purpose finimcial statements.
29
CITY OF CAPtsBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) - All Governmental hmd Types
Year Ended June 30, 1994
General Fuud Actual on Variance- Budgetary Favorable Budget Basis .l Unfavorab 1 e 1
Revenues : Taxes $25,505,900 26,511,005 1,005,105 Licenses and permits 1,725,000 1,822,275 97,275 28,384 28,384 Intergovernmental -
State subvent ions 3,073,500 2,862,479 Wrges for services 3,391,000 3,069,804 Fines and forfeits 250,000 231,454 (18,546 Interest income 1,700,000 1,465,717 (234,2831 Interdepartmental services 1,995 ,OOO 2,393,576 398,576 Miscellaneous 339.681 378.771 39.090
Total revenues 37.980.081 38.763.465 783.384
[Z 1 E 1
Expendi tures: Current : General government 6,094,083 4,902,586 1 191,497 Public safety 15,978,177 15,796,515 181,662 Community development 7,136,094 - 6,614,288 - 521,806 -
Housing and welfare Library and the arts 2,774,049 2,707,864 66,185 Community services 7,590,073 7,247,656 342,417 Capital outlay - - -
Debt service: Principal retirement - - - Interest and fiscal charges - - - Payment to refunded bond escrow agent - - - Debt issuance costs - - - State mandated payment - - -
Total expenditures 39.572.476 37.268.909 2.303.567
Excess (deficiency) of revenues over (under) expenditures 11.592.395) 1.494.556 3.086.951
Other financing sources (uses): Operating transfers in - - -
Operating transfers out (1,171,055) (1,171,055) - Payment to refunded bond escrow agent - - -
Proceeds of refunding bonds - - -
Proceeds of bonds, net of dlscount - - -
Total other financing sources (uses) 11.171.055) /1.171.055) -
Excess (deficiency) of revenues and other financing sources over
other financing uses (2,763,450) 323,501 3,086,951 (under) expenditures and
Fund balances at beginning of year 17,833,956 17.833.956 -
Residual equity transfers in - -
Residual equity transfers out - 160,000) 16c000)
Fund balances at end of year s15.07o.5o518.097.457 3.026.951
See accompanying notes to general purpose financial statements.
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I Budnet Basis (Unfavorable) Budget Basis IUnfanorable) Budget Basis .
Svecial Revenue Funds Debt Service Funds Totals lMemorandm Actual on Varfance- Actual on Var hce- Actual on Budgetary Favorable Budgetary Faw rab 1 e Budgetary
1 1,450,000 1,508,186 58,186 1,280,000 1,288,269 8,269 28,235,900 29,307,460 - - - - - - 1,725,000 1,822,275 3 , 604 , 670 3,262,525 (342,145) - - - 3 , 604 , 670 3,290,909 - - - - - - 3 , 073 , 500 2 , 862,479 1,715.440 1,929.747 214,307 - - - 5,106,440 4,999,551 - - - - - - 250, 000 231,454 61,391 1,391 2,061,500 1,960,410 - - 1,995,000 2,393,576
117.000 212.646 95.646 - - -- - 456.681 91.417 1 7,188,610 7.346.406 157.796 1.340,OOO 1.349.660 '9.660 46.508.691 47,:59.531
301,500 433,302 131,802 60,OOO - - - - I
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- - - 6.094.083 4,902,586 794,445 784,825 9,620 - - - 16,772 , 622 16,581,340 - - - - - - 7,136,094 6,614,288 - - - 3,257,488 3,141,777 3 , 642,583 3,403,859 868,534 695,995 172,539 - - - - - - 12,131,296 11,369,502
3,257,488 3,141,777 115.711 I 4,541,223 4,121,846 419,377 - - - - - - - -
- - - - - - - - - - - 859,550 885 , 375 (25,825) 859,550 885,375 - - - 1,709,777 1,709,777 - 1,709,777 1,709 , 777 - - - 489,113 489,113 - 489,113 489 , 113 - - - 2.500 2.472 28 2.500 2,472 1 9,461.690 8.744.443 717.247 3.1:0.940 3.1z6.737 (25.797) 52,115.106 49.130.089
(2.273.080) (1.398.037) 875.043 (1,810,940) 11.827.077) (16,137) 15,676.415) 11.730.558)
24,025 24,025 - 474,777 474,777 - 498,802 498,802 - - - (2,610,517 (2,610,517) - (3,781,5721 (3,781,572 - - - (10,964,3721 (10,964,372) - (10,964,372 (10,964,3721 - - - 10,964,372 10,964,372 - 10 , 964,372 10,964,372 - - - 4.220.728 4.220.728 - 4.220.728 4.220.728
24,025 24,025 - 2.084.988 2 .OM. 988 - 937,958 937.958
(2,249,055) ( 1,374,012) 875,043 274,048 257,911 (16 , 137) (4,738,457) (792,600)
9,757,035 9,757,035 - 1,787,772 1,787,772 - 29 , 378,763 29,378 , 763
- 60,000 60,000 - - - - 60,000 - f975) (975) - - -- - - f 60,975)
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CITY OF CARISBAD
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings - All Proprietary Fund Types
Year Ended June 30, 1994
Internal Totals En t e IT r i s e Service (Memorandum On Operating revenues : Water sales $12,550,905 - 12,550,905 Sewer service charges 4,718,689 - 4,718,689 Other charges for services 660,925 5,536,183 6,197,108 Contributions from other government agencies 215,642 - 215,642 Miscellaneous 328.437 470.738 799.175
Total operating revenues 18.474.598 6,006,921 24.481.519
Operating expenses: Plant operat ions 1,575,214 - 1,575,214 Purchased water 7,269,101 - 7,269,101 Depreciation and amortization 2,343,504 607,733 2,951,237 Fuel and supplies - 434,204 434 9 204
Claims expense - 3,551,809 3,551,809 General and administrative 5.334.922 1.623.556 6,958.478
Total operating expenses 16.522.741 6.217.302 22.740.043
Operating income (loss) 1.951.857 (210.381) 1.741.476
Nonoperating revenues (expenses):
Interest income 1,979 ? 847 571,493 2,551,340 Interest expense and fees (1,635,574) - (1,635,574) Gain (loss) on sale of property (96? 315) (960 1 (97,275) Property taxes 744 ? 209 - 744,209 Miscellaneous income (expense) (744 ? 878) - (744,878) Amortization of issuance costs (61.776) - (61.776)
Total nonoperating revenues
(expenses ) 185.513 570.533 756.046
Income before operating transfers 2,137,370 360,152 2,497,522
Operating transfers in - 14,500 14.500
Net income 2,137,370 374,652 2,512,022
Retained earnings at beginning
of year 35,305,966 4.381.695 39.687.661
Retained earnings at end of year $37.443.336 4-756.347 42.199.683
See accompanying notes to general purpose financial statements.
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CITY OF CARLSBAJ.)
Combined Statement of Cash Flows- All Proprietary Fund Types
Year Ended June 30, 1994
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Internal Tota EnterDriE Service (Memo rand
Bperat ing income (loss) $ 1,951,857 (210,381 ) 1,74 1
I by operating activities:
Cash flows from operating activities:
Adjustments to reconcile operating income (loss) to net cash provided
Depreciation and amortization 2,343,504 607 , 733 2,95
Decrease (increase) in receivables (606,467) 409 (60 Decrease (increase) in due from other
(1 governments (18,592) -
Decrease (increase) in inventory 4 , 699 13,278 1 increase (decrease) in deposits payable 49,022 - 4 Increase (decrease) in accounts payable 285,303 129,097 41 Increase (decrease) in accrued wages payab 1 e 15,579 13,128 2
- - (230.002) (23 payab 1 e
activities 4.967.745 323.262 5.29
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1 Principal payment on bonds (1,004,630) - (1900
Increase (decrease) in loans payable 942,840 I 94
Increase (decrease) in estimated claims
Net cash provided by operating
1 Cash flows from noncapital financing activities: 1 - 14.500 - Transfers from other funds -
Cash flows from capital and related financing activities:
Purchases of property, plant and equipment (4,048,196) (586,620) (4,63
Interest and other fees paid on bonds (1,650,361) - (1965 Property taxes received 744,209 - 74 1 Capital contributions received 1.060.729 - 1.061
1 activities (4.898.29) (586,620) (5.48
Net cash provided by (used in) capital and related financing
Cash flows from investing activities: I Investment in restricted assets 206,995 - 20
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Interest on investments 1 .969.588 572,980 2.54
activities 2.176.583 572.980 2.74 1 Net increase in cash and cash equivalents 2,246,079 324,122 2,57(
of year 33.575.974 10.385.970 43.96
Net cash provided by investing
Cash and cash equivalents at beginning
Cash and cash equivalents at end of year $35.822.oB lLLaLE2 46.53:
investing and financing activities $1.554.84Q 472.748 2.02' I Supplemental schedule of noncash
See accompanying notes to general purpose financial statements.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
Year Ended June 30, 1994
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<1) Summary of Simificant Accounting; Policies
The City of Carlsbad, California (Carlsbad) was incorporated on July 16, Carlsbad operates under a Council-Manager form of government and providc following services: general government, public safety, community develor
housing and welfare, library, and community services.
The accounting policies of Carlsbad and its comlponent units conform to gen
accepted accounting principles as applicable to governmental units. The followin
summary of the more significant policies:
(a) 1 DescriDtion and ScoDe of the ReDortinP Entity
As required by generally accepted accounting principles, these fin statements present the City of Carlsbad (the City) and its component entities for which the City is considered to be financially accountable. Thc is considered to be financially accountable for an organization if the appoints a voting majority of that organization's governing body and the ( able to impose its will on that organization or there is a potential foi organization to provide specific financial benefits to or impose specific fin burdens on the City. The City is also considered to be financially accountah an organization if that organization is fiscally dependent upon the City (Leq unable to adopt its budget, levy taxes, set rates or charges, or issue bondec without approval from the City). In certain cases, other organization
included as component units if the nature and significance of their relatic
with the City are such that their exclusion would cause the City's finl
Based upon the above criteria, the component units of the City are the Hc Authority of the City of Carlsbad, the Parking Authority of the City of Car the City of Carlsbad Public Improvemlent Corporation, the Ca Redevelopment Agency and the Carlsbad Municipal Water District (the Dist
Since the City Council serves as the governing board for these component all of the City's component units are considered to be blended component Blended component units, although legally separate entities, are in subs part of the City's operations and so data from these units are reported wi interfund data of the primary government. Only the Parking Authority, th of Carlsbad Public Improvement Corporation., and the Carlsbad Redevelo1 Agency issue separate component unit financial statements. Upon completion, the financial statements of these component units can be obtair
City Hall.
statements to be misleading or incomplete.
35
CITY OF CARLSBAD
Notes to General Pwse Financial Statements
(Continued)
ill Summary of Significant Accounting Policies. (Continued)
@) Basis of Presentation
The accounts of the City are organized on the basis of funds or account grc
each of which is considered to be a separate accounting entity. The operatioi
each fund or account group are accounted for by providing a separate se self-balancing accounts that comprise its assets, liabilities,
balancehetained earnings, revenues, and expenditures or expenses. The vai funds and account groups are summarized by type in the financial stateml Fund types and account groups used by the City are as foflows:
GOVERNMENTAL FUND TYPES:
Governmental funds are used to account for the City's expendable finar resources and related liabilities (except those accounted for in proprietary similar trust funds). The measurement focus is based upon determinatio. changes in financial position. The following are the City's governmental types:
General Fund
The general fund is the general operating fund of the City. It is use( account for all financial resources except those required to be accou
for in another fund.
SDecial Revenue Funds
Special revenue funds are used to account for revenues derived f
specific sources (other than major capital projects) that are restictec law or administrative regulation to expenditures for specific purposes.
Debt Service Funds
Debt service funds are used to account for the accumulation of resow for, and payment of, general long-term debt principal, interest and rela
costs.
Capital Projects Funds
Capital projects funds are used to account for financial resources to used for the acquisition or construction of major capital facilities ot than those financed by proprietary funds.
PROPRIETARY FUND TYPES:
Proprietary funds are used to account for activities that are similar to tb found in the private sector. The measurement focus is based upon determinat of net income and capital maintenance. The following are the City's propriet, fund types:
36
CITY OF CAFUSBAD
Notes to General Purpose Financial Statements
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Enterurise Funds
Enterprise funds are used to account for operations (a) that are fin primarily through user charges, or (b) where the governing body has dr that determination of net income is appropriate.
Internal Service Funds
Internal Service funds are used to account for goods or services provic one department to other departments of the City on a cost-reimburs
basis.
FIDUCIARY FUND TYPE:
Fiduciary funds are used to account for smets held by the City in a t capacity or as an agent for individuals, private organizations, other governr
units, and/or other funds. The following is the City's fiduciary fund type:
Agencv Funds
Agency funds are used to account for assets held by the City in an i capacity for individuals and private businesses. They do not i! measurement of results of operations.
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ACCOUNT GROUPS:
Account groups are used to establish accounting control and accountabili the City's general fixed assets and general long-term debt. The following i City's account groups: 1 General Fixed Assets Account GrouD
This account group is used to account {'-x all fixed assets of the Citj than those accounted for in the propriet<ary funds.
General Long-Term Debt Account Group
This account group is used to account ,for all long-term obligations City except those accounted for in the proprietary funds and trust fur
Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measul focus. Accordingly, only current assets: and current liabilities are ir on their balance sheets, and the reported fund balance provic
indication of available, spendable resources. Operating statemer
governmental fund types report irtxeases (revenues) and de( (expenditures) in available, spendable r.'sources.
1 (c)
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
{l) Summarv of Significant Accounting Policies. (Continued)
The proprietary fund types are accounted for on an "income determinai or "cost of services" measurement focus. Accordingly, all assets
liabilities are included on the balance sheet, and the reported fund ec
statements for proprietary fund types report increases (revenues)
decreases (expenses) in total historical net worth.
Fiduciary fund types are custodial in nature (assets equal liabilities) anc not involve measurement of results of operations. Fiduciary fund as and liabilities are accounted for on the modified accrual basis of accoun
Governmental fund types use the modified accrual basis of accouni Revenues are recognizable when susceptible to accrual, i.e., 1
measurable and available. Available means collectible within the cm
period or soon enough thereafter to be used to pay liabilities of the cun period. In applying the susceptible to accrual concept to intergovernme revenues, the legal and contractual requirements of the individual progr are used as guidance.
Revenues that are accrued include real property taxes, sales tax, inter and some state and federal grants.
Real property taxes are levied on October 15 against owners of recorc
March 1. The taxes are due in two installments, on November 1 February 1, and become delinquent after December 10 and April respectively. Tax liens attach annually as of 12:Ol a.m. on the first daj March in the fiscal year for which the taxes are levied. Under
provisions of NCGA Interpretation 3, property tax revenue is recognizec the fiscal year for which the taxes have been levied, provided it is collec within 60 days of the end of the fiscal year.
Governmental expenditures are recorded when the related fund liability incurred. Principal and interest on general long-term debt are recordec fund liabilities when due or when amounts have been accumulated in I
debt service fund for payments to be made early in 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 perj incurred.
(d) Encumbrances
provides an indication of the historical net worth of the fund. Oper:
Encumbrance accounting, under which purchase orders, contracts and 0th commitments for the expenditure of monies are recorded in order reserve that portion of the applicable appropriation, is employed as extension of formal budgetary control in the governmental func Encumbrances outstanding at year-end do not constitute expenditures I liabilities, but are reported as reservations of fund balance.
38
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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I (Continued)
[I) Summary of Simificant AccountinP: Policies. (Continued)
(e) Cash and Investments
Cash includes amounts in demand and time deposits. Investmer
stated at cost or amortized cost, except for deferred compensation
which are shown at market value.
The City maintains a cash and investment pool that is available for
all funds. Interest income earned as a result of pooling is allocated appropriate funds based on average monthly cash balances.
(f) Inventories
Inventories consist of materials and suuplies that are valued at cost i
recorded as expenses on a first-in, first--out basis when consumed
(g) COmDenSated Absences
Vacation pay is payable to employees at the time used or upon termi of employment. For governmental funcls, the cost of accumulated va expected to be paid in the next 12 month is recorded as a fund liabili amounts expected to be paid after 12 months (if any) are recorded general long-term debt account group. For compensated absences ret at June 30, 1994, all balances are expected to be paid within the fol
12 months. For proprietary funds, the cost of vacation is recordec liability when earned.
(h) Risk Management
The City accounts for its general liability, health insurance, and wc compensation activities in internal serwce funds. The fun& are respc for collecting premiums from other City funds and departments and 1 claims settlements and insurance premkms. Interfund premiums are
are accrued at year-end if material.
on the insured fund’s claims experience. Incurred but not reported l
(i) Unbilled Services
Unbilled water revenue of the enterprise funds is recognized as e when the water is consumed. 1 (j) General Fixed Assets
General fixed assets are recorded as eqpenditures in the governmenta types and capitalized at historical cost in the general fixed assets ac
group. In the case of gifts or contributions, such assets are recorded a market value at the time received.
39
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
Ill Summary of Simificant Accounting; Policies. (Continued)
Fixed assets consisting of certain improvements other than buildi
including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, have not been capitalized. Such assets normally immovable and of value only to the City. Therefore, the objectivc
stewardship for capital expenditures is satisfied without recording tl assets.
In the general fixed assets account group, construction in progres transferred to buildings or improvements upon approval by the 1
Council, which approximates the completion date.
No depreciation has been provided on general fixed assets.
ProDertv. Plant and Equipment - ProDrietarv Funds
Property, plant and equipment used by proprietary funds is stated at cos estimated historical cost. Contributed fixed assets are recorded
estimated fair market value at the time received. Net interest costs
capitalized on projects during the construction period.
Depreciation is charged to operations using the straight-line method bz on the estimated useful life of the related asset. The estimated useful of the assets are as follows: Years
(k)
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 f aci 1 i ty 55
Filters, pumps and fire hydrants 10 - 50 Equipment 3- 20
(1) Deferred Revenue
The deferred revenue in the General F.md represents interest due, but
available, on advances to the Carlsbad Redevelopment Agency and fu
received to be applied towards future construction.
The deferred revenue in the Debt Service Funds represents spel
assessments receivable.
The deferred revenue in the Capital Projects Funds relates to fc
received and to be applied toward future construction.
The deferred revenue in the Enterprise Funds relates to deposits or in4
prepayments for services to be rendered (e.g., sewer installation, etc.).
40
CITY OF CARLSBAD
Notes to General Purpose Financial !Statements
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I (Continued)
/1) Summary of Significant Accounting Policies. (Continued)
Statement of Cash Flows - Promietarv Fiunds
For purposes of the statement of cash flows, the Proprietary Funds COI all highly liquid investments with an original maturity of three mont less when purchased and all amounts invested in a cash and investment
to be cash equivalents.
(m)
(n) Advances to Other Funds
Interfund loan receivables are reported iaS advances and are offset e(
expendable available financial resources and therefore are not availab
appropriation.
by a fund balance reserve which indicates that they do not cons
(0) Residual Eauitv Transfers
Residual equity transfers represent nori-routine transfers of equity be.
funds, including amounts transferred to reflect the opening, closii reclassification of funds.
@) Total Columns
Total columns on the combined statemlents are captioned "Memora Only" to indicate that they are preslented only to facilitate fin;
analysis. Data in these columns do not present financial position, resu operations, or cash flows in conformity with generally accepted accoL
principles. Such data is not comparable to a consolidation since inte
eliminations have not been made.
I /2) Budpetal?, Data
The City follows these procedures in establishing its budgetary data:
1. During May or June, the City Manager submits to the City Cow proposed operating budget for the fiscal year commencing the folZ July 1. The budget includes proposed expenditures and estimated rev( on a departmental basis.
Public hearings are conducted at City Council meetings to obtain citi
3. Prior to July 1, the budget is enacted legally through passage (
2. I comments during June.
I appropriation resolution.
I
I 41
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
12) Budgetary Data, (Continued)
The City Manager is authorized to make transfers of appropriated amounts wit1 fund for up to $25,000. Revisions that alter the total appropriations of any fund be approved by the City Council with the exception of budget adjustments v involve offsetting revenues and expenditures. The City Manager is authorize
increase or decrease an appropriation for a specific purpose where the appropriati offset by unbudgeted revenue which is designated for said specific purpose. Quar budget reviews are conducted each year and any major changes to the adopted bu
are approved by the City Council at that time. During the year, several supplemen
appropriations were necessary.
Budgets for governmental type funds are adopted on the modified accrual basis, ex that encumbrances are treated as budgeted expenditures in the year purchases committed.
Expenditures may not exceed budgeted appropriations at the departmental level. appropriations lapse at fiscal year-end unless City Council takes formal action in form of a resolution to continue the appropriation into the following fiscal year.
For purposes of budgetary presentation, actual generally accepted accoun principles (GAAP) expenditures have been adjusted to include encumbra, outstanding and designations for continuing appropriations at yearend. An budgets are adopted for the General, Special Revenue and Debt Service Funds ex1 for the following: College Boulevard, Hosp Grove COPS, and Parking Autho
Accordingly, the revenues and expenditures for these funds have been excluded f
the budget basis financial statements. Annual budgets are not adopted for the Cai Projects Fuhds; therefore, budget basis financial statements have not been prep;
because a comparison of such budgetary amounts to annual revenues and expendit] is not meaningful.
The following schedule is a reconciliation of the budgetary and GAAP fund balances
Spec i a 1 Debt General Revenue Servic
Fund Funds Funds
8 , 442 , 048 2 , 045,6i Fund balances-budgetary basis Encumbrances outstanding
Fund balances designated for
$18 , 097 , 457
at year-end 454,996 260 , 104 -
continuing appropriations 430,450 1,224,049 -
2.495.1: Fund balances of nonbudgeted funds - -
Fund balances - GAAP basis %18.982.9039.926.2014.540.8:
42
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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f3) Cash and Investments
Each participating fund's portion of the City's cash and investment pool is displa: the combined balance sheet as "Cash and investments." This category also in cash and investments that are held separately by several of the City's funds.
Authoritv for Dewsits and Investments:
The City's investment policy and state statutes authorize the City to inv obligations of the U.S. Treasury, its agencies and #instrumentalities. commercia' rated A-1 by Standard and Poor's Corporation or IP-1 by Moody's Commercial record, banker's acceptances with a maximum maturity of 270 days, repu agreements, certificates of deposit with national arid state licensed or chartered or federal or state savings and loan associations, medium-term corporate notes maximum five-year maturity rated in the three tap rating categories, money 1 and mutual funds whose portfolios consist of one or more of the foregoing invest the County Treasurer's investment pool, and the State Treasurer's investment poc
State statutes require that all deposits be insured or collateralized. Dews holding public funds on deposit are required to maintain collateral in the form of
of government securities with a market value of it least 10 percent in excess
City's deposit or 50 percent in excess of the deposit as collateral in mortgage poc
Cash and investments held by the City at June 30, 1994 consisted of the following
II
6 , 402
178,239
Cash on hand (petty cash)
Depos its
Investments 136,101,383
iiL&aX@
$
Cash and investments are classified in the accomlpanying combined balance sh follows:
Cash and investments $124,100,244 Deferred compensation investments 6,991,043 Restricted assets: Cash and investments 5.194.737
$136.286.024
43
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(3) Cash and Investments. (Continued1
Deposits:
The following summary presents the amount of the City's deposits which are ft insured or collateralized with securities held by the City or its agent in the Cit name (Category One), those deposits which are collateralized with securities held the pledging financial institution's trust department or agent in the City's na (Category Two), and those deposits which are not collateralized or are collateraliz with securities held by the pledging financial institution or its trust department
agent but not in the City's name (Category Three) at June 30, 1994.
Cat eaorv Bank Carry i ng
Demand deposits $145.116 1,172,711 A 1.317.827 178.239
Form of DeDosit 1 2 - 3 Balance Amount
Total deposits $145.116-&1.317.827 LzL232
Investments:
The City categorizes investments according to the level of risk assumed by the Ci.
Category One includes investments that are insured, registered or held by the Cit: agent in the City's name. Category Two includes uninsured and unregister investments held by the counterparty's trust department or agent in the City's nan Category Three includes uninsured and unregistered investments held by t,
counterparty, its trust department or its agent, but not in the City's name. Certa investments have not been categorized because securities are not used as evidence
the investment. These uncategorized investments include ownership interests in tl Local Agency Investment Fund, County Treasury Investment POO~ and mutual funds a] similar instruments. The summary below identifies the level of risk assumed by tl City and the total carrying amount and market value of the City's investments.
Cat e go rv Carrying Market Form of Investment 1 2 - 3 Amount Amount
U . S . Government agency
U.S. Treasury securities 13,704,991 109,706 - 13,814,697 13,785,376 obligations $45 , 482 , 493 1,561 , 873 - 47 , 044 , 366 46 , 094 , 346
Corporate notes 32,011.107 - - - 32,011,107 31.788.400
$91.198.591 1-79 A 92,870,170 91,668,122
State investment pool (LAIF) 9,383,467 9,383,467 County investment pool 18,020,800 18,020,800 Guaranteed investment contracts 1,382,394 1,382,394 Mutual funds 14.444.552 14.444.552
Total investments $136.101.383-
44
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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1 (Continued)
(4) Due To and From Other Funds
The following table shows amounts due from funds within the City to other within the City at June 30, 1994:
Due to Spec i a1 Revenue
Low and Mode rat e General Income Enterur ise 1 Fund Housk Sewer Fund Tota
Due from: Special Revenue Funds: Section 8 Housing
State Grants Fund 420 - - Senior Nutrition Fund 15,184 - -
Capital Projects Funds:
Community Development
Enterprise Funds: Carlsbad Municipal Water
Authority Fund $667,136 - - 667,
15 3
Block Grants Fund 28,744 1,199,592 - 1,228,
- - 209.924 209, District --
Total $711.484u9.592209.924 2.121.
(5) Advances To and From Other Funds
The following table shows amounts advanced from funds within the City to
funds within the City at June 30, 1994:
Advances From Advances To Amou
General Fund Capital Projects Funds: Park Deve 1 opnien t Fund $ 2,55C Planned Local Drainage Facilities Fund 30C
Redevelopment, Project Fund 8.365
11.215
I
Capital Projects Funds: Capital Projec1;s Funds: General Capital Pub1 ic Faci 1 j. t ies Construction Fund Cons t ruc t ion Fund 93 Traffic Impact Projects Fund 75(
1.70(
Total advances $12.91!
CITY OF CAUSBAD
Notes to General Purpose Financial Statements
(Continued)
/6) General Fixed Assets
A summary of changes in the general fixed assets account group is as follows:
Balance at Balance Julv 1. 1993 Additions Deletions June 30. !
28,037 ,! Land $25,946,668 2,090,876 -
Buildings 27,405,136 21,000 - 27,426,l Improvements 2,819,444 253,000 (1,247) 3,071,l Furniture and equipment 4,906,206 698,308 (500,806) 5,103,7 Construction in progress 1.940.319 2.331.206 (2.364.876) 1.906.6
Total i%5uxuu 5.394.390(2.866.929) liLaiL2
Construction in progress in the general fixed assets account group is composed of following:
Expended Project Balance at Authorization June 30. 1994 Committ
Library - South Carlsbad $1,138,729 1,099,803 38,9 Public Art - South Carlsbad
Library 170,000 90,656 79,3, Poinsetta Park 4,087,000 506,849 3,580,l
Larwin Park (22.3 acres) 190,000 173,331 16,6 Public Art - Seawall 30,000 15,000 15,o 193,000 21.010 171.9: Other
iliuuuB 1.906.649 3.902.01
There is no future financing commitment required on any of the above nc construction projects.
ProDertv. Plant and EauiDment - ProDrietarv Funds
A summary of proprietary fund type property, plant and equipment at June 30, 199L as follows:
(7)
46
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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I (Continued)
/7) ProDerty. Plant and Eauipment - ProDrietarv Funds. (Continued)
Enterprise Internal S
- - Land, water rights, rights-of-way !I 2,136,815 Buildings and improvements 5,817,620 Wells, reservoirs and dams 17,324,132 - Transmission and distribution lines 33,053,370 - Sewer, sewer lines and wells 26,214,671 -
Sewage treatment faci 1 i ty 30,714,426 -
Equipment and vehicles 1,810,226 6,066, I Construction in progress - 6.209.694 -
123,280,954 6,066,
Less accumulated depreciation - (22.347.869) (2.857.
Property, plant and equipment, net :- 3.208.
Enterprise Fund interest is charged to expense as incurred, except for interest
to borrowings used for construction, which is Capitalized net of interest ea1 construction funds borrowed. Interest capitalization ceases when the const
capitalized in the Enterprise Funds during 1994. Total interest costs incum interest earned on related interest-bearing investments acquired with proceeds tax-exempt borrowings were $1,619,885 and $1 13,010, respectively.
The Enterprise funds had various construction contracts in progress at June 3( with an estimated cost to complete of approximately $614,000. There is no financing required on any of these projects.
project is substantially complete and placed in service. No interest cost,
I
(8) Obligations Under CaDital Leases
In August 1987, the City entered into a sale and leaseback agreement with a fi institution for the Community Development building. Principal and interest pa totaling $234,529 are to be paid each year through 1997 with a final payn $117,264 in fiscal year 1998. The present value of these minimum lease pa equals $705,390 after deducting amounts representing interest of $1 15,461. Thc leasehold interest of $1,602,160 has been recorded in the City's general fixec
account group.
1 19) Obligations Under Operating Leases
In June 1988, the Carlsbad Redevelopment Agency entered into an agreement ti a parking lot on State Street from a private party. The lease requires monthlj payments for twenty years. Total annual rent payments are $46,517 for fisc; ending June 30, 1995 with annual cost of living adjustments required and marke adjustments required every 5 years after fiscal year ending June 30, 1988. The
minimum rental payments have been calculated with a 6% annual cost of
adjustment.
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(9) Obligations Under berating Leases. (Continuedl
In May 1990, the Carlsbad Redevelopment Agency entered into an agreement to lease a F lot on Carlsbad Village Drive from a private party. The lease requires annual rental pal for five years. Total annual payments are $43,500 for fiscal year ending June 30, 1995
Redevelopment Agency has a purchase option on the property which it intends to exercise
end of the fifth year.
The following is a schedule by year of future minimum rental payments required und operating leases at June 30, 1994:
Year ending June 30,
1995 $ 90,017 1996 49,308 1997 52,266 1998 55,402 1999 58 y 726 Thereafter 715.333
Total minimum lease payments $1.021.052
{lo) Long-Term Debt
The following is a summary of changes in the principal balance of long-term debt for tb
ended June 30, 1994:
Principal Princip
Balance at Ba 1 ance July 1. 1993 Additions Reductions June 30.
General long-term debt account group:
Bonds $12,460,000 15,495,000 (11,385,000) 16,570,i Special assessment debt with
governmental commitment 7,580,000 - (290,000) 7,290, I Ob1 igat ions under capital
leases 874,288 - (168,898) 705,; (275,000) 7.555.1 Certificates of participation 7.830.000 -
Total general
long-term debt %28.744.28815.495.001) (12.118.898)32.12o.r
Enterprise funds:
Certificates of participation $11,370,000 - (730,000) 10 y 640, ( Installment purchase agreement 12,689,800 - (274,630) 12,415, I 942. E Loan payable - 942.840 -
Total enterprise funds $24.o59.800942.840 (_1.o04.630)23.998.(
48
CRY OF CARLSBAI)
Notes to General hnpose Financial Statements
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(10) Long-Term Debt. (Continuedl
Long-term debt at June 30, 1994 is comprised of the following issues:
Balance ai June 30. 1$ General Long-Term Debt:
1969 Carlsbad Parking Authority Revenue Bonds, principal due in amounts of $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 $ 250,OC
1981 Carlsbad Parking Authority Revenue Bonds, principal due in amounts ranging from $100,000
to $150,000 on February 1 of each year through
February 1 at 8.0% per annum, payable from the
General Fund 825,0[
Parking Authority revenue bonds 1.075.0G
2001, interest payable on August 1 and
1993 Carlsbad Housing and Redevelopment Commission Tax Allocation Bonds, principal due in amounts ranging from $240,000 to $1,000,000 on September 1 of each year through 2024. Interest payable on March 1 and Septembler 1 at rates varying from 5.25% to 5.30% per annum 15.495. OC
Total bonds payable 16,570, OC
1986 College Boulevard Assessment District Bonds, principal due in amounts ranging from !$335,000 to
$865,000 on September 2 of each year through 2006,
rates varying from 7.4% to 8.0% per annmm
1988 Hosp Grove Certificates of Participation, principal due in amounts ranging from $,295,000 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 7.6% per annum 7,555,OO
Obligations under capital leases (note 8) 705.39
interest payable on September 2 and March 2 at 7,290,0[
1
Total General Long-Term Debt $32.120.39
49
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt. (Continued)
Entetmise Fund Long-Term Debt:
1988 Carlsbad Municipal Water District Certifi- cates of Participation, principal due in vary- ing amounts ranging from $775,000 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 6.6% to 7.3% per annum
Encina Financing Joint Powers Authority (EFJPA) Installment Purchase Agreement, principal due in varying amounts ranging from $289,782 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 6.2% to
6.875% per annum 12,415,170
In August of 1993, the Carlsbad Municipal Water
District (the District) entered into a loan
agreement with the State Water Resources Control Board authorizing a loan of $2,429,240 for the design and construction of phase 1 of the District's water reclamation project. Loan funds are disbursed based on project costs incurred to date. As of June 30, 1994, the District has received loan funds of $942,840. payments of $62,894 due on November 30 of each year, commencing November 30, 1994. The effective interest
rate on the loan is 2.9%. 942,840
23,998,010
$10,640,000
The loan is payable in twenty annual
Subtotal enterprise funds
Less unamortized discount
and issuance costs (644,470)
Less current port ion (1,107,265)
Total Enterprise Fund Long-Term Debt $22.246.275
Reserve funds of approximately $5,165,000 are required to be held in debt servic
funds to secure the payment of principal and interest on the outstanding debt issues.
Debt service requirements to maturity for general long-term debt (excludin obligations under capital leases) are as follows:
50
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
1
t
i (Continued)
I /lo) Long-Term Debt. (Continued)
1 Revenue Bonds Bonds Bands Part iciDat ion -
1995 $ 303,000 815,340 898,350 866,873 2 1996 287,000 1,049,040 897,107 866,733 3 1997 150,000 1,046,178 898,413 859,795 2 1998 167,000 1,047,659 901,929 860,985 2 1999 157,000 1,048,352 8197,715 859,880 2 2000-2004 309,000 5,221,575 4,502,149 4,281,360 14 - 5,211,426 2,703,601 4,251,200 12 - 15 - 15.528.640 - - - 2005-2009
1,373,000 30,968,210 11,699,264 12,846,826 56
1 interest (298.000) (15.473.210) w109.264) (5.291.826) (E
1 long-term debt $1.075.000 J.5.495-0QQ J.;!90.OM 7.555.000 31
Parking Tax Assessment Certificates Authority A1 locat ion District of
I
1
1 2010-2024
Less amounts rep res en t ing
Total general
Debt service requirements to maturity for the enterprise funds are as follows:
Water District Installment Certificates of Purchase Loan
Encina
1
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- ParticiDation Agreement Pavab 1 e
1995 $ 1,526,248 1,108,498 62,894 2, 1996 1,525,098 1,108,730 62,894 291 1997 1,524,822 1,107,542 62,894 2,( 1998 1,524,982 1,106,820 62,894 2,( 1999 1,525,122 1,106,426 62,894 2,( 2000-2004 7,633,282 5,517,192 314,470 13,d - 5,485,770 314,470 5,: 2005-2009
2010-2015 - 6.528.862 299.412 6.1
15,259,554 23,069,840 1,242,822 39,i
Less amounts representing interest (4.619.554) (10.654.670 ) (299,982) (&
Fund debt $10.640.000 &2&UkuQ 942.840 &a Total Enterprise
At June 30, 1994, the City was in compliance with all significant debt covenants. I 51
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
[lo) Long-Term Debt. (Continued)
On August 15, 1993, the Carlsbad Redevelopment Agency issued $15,495,000 in allocation bonds to finance redevelopment activities within the Village Redevelopm Project Area and to advance refund $11,185,000 of outstanding 1988 series allocation bonds. The bonds were sold at a discount of $309,900.
Proceeds of $10,964,372 plus an additional $1,709,777 of 1988 series monies were u! to purchase U.S. government securities. Those securities were deposited in irrevocable trust with an escrow agent to provide for all future debt service payme on the 1988 series bonds. As a result, the 1988 series bonds are considered to defeased and the liability for those bonds has been removed from the gene long-term debt account group.
AS a result of the advance refunding of the 1988 series bonds, the Agency reduced
future cash payments by almost $1,500,000 and obtained an economic gain (differer
between the present values of the debt service payments on the old and new debt) approximately $364,000.
In November 1988, the Carlsbad Municipal Water District (the District) issi
$14,370,000 in Certificates of Participation. A portion of the proceeds was used refund $1 2,000,000 of the outstanding 1984 Certificates of Participation (1984 COE The District deposited funds in an irrevocable trust with an escrow agent to provide f all future debt service payments on the 1984 COPs. In May 1994, all outstanding 19 COPs were called.
The College Boulevard Assessment District Bonds were issued under the provisions the Improvement Bond Act of 1915. The bonds were issued to finance the pub infrastructure improvements project on College Boulevard. If a delinquency occurs the payment of the assessment installments, the City, at the end of the fiscal year delinquency, has a duty to transfer to the debt service fund the amount of t
delinquency out of available funds of the City. Available funds consist of any surpl
continuing during the period of delinquency, until reinstatement, redemption or sale
the delinquent property. Even though neither the faith and credit nor the taxing pow of the City is pledged for the payment of the bonds, the City is obligated in the mann stated above. Accordingly, these bonds have been recorded in the general long-ter debt account group of the City.
The College Boulevard Assessment District has delinquencies in the amount (
$606,089 for assessments due in fiscal years 1990-91 through 1993-94. Although tl delinquencies are 20% of the total assessment, only one major property owner delinquent and all principal and interest payments were made without use of ti
reserve fund. The City's suit to foreclose on the property, which was delayed becan of bankruptcy actions, is expected to occur in early 1995. Reserve funds will be usc for the September 1994 principal and interest payment.
funds of the City not required for lawful municipal obligations. This duty of the City
52
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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I Total fund balances $18.982.9032.926.2014.540.835=
1
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i Total retained earnings aiZ&Lu 4.756.347
1
I (Continued)
I (1 1, Fund BalancedRetained Earnings
The following is a summary of reserved and unreserved fund balances and retained ear of June 30, 1994:
Governmental Fund Twes Special Debt Cap i Fund Balances General - 13evenue Service Proj
Reserved for: - 107,955 -
22,585 - - Loans receivable $ Inventory Prepaid expenditures - 218,395 -
Debt service - - 4,538,210
Advances to other funds 7,073,722 - - 1,70 Low and moderate income housing - 1,817,758 -
Rent interruption insurance 131,000 - -
Encumbrances 454.996 - 260.104 - l.24
7.682.303 2,404.212 4.538.210 3.27
Unreserved: Designated for approved
Designated for continuing appropriations 430,450 1,224,049 -
Designated for arbitrage - - 2,625 Designated for sales tax payment 413,000 - -
Designated for city hall remodel 46,000 - -
Designated for parking bonds 800,000 - - 1,200,000 - -
capital projects $ - 921,628 - 17,42
Designated for golf course Undesignated 8.411.150 5.376.312 - 6.81
11.300.600 2.521.989 2.625 24.2:
- F’roprietarv Fund Twes Internal Retained Earninns - Ertt e rDr i s e Service
Reserved for: Debt service $ 3,344,524 - Rate stabilization and other - 280.561 ..
3,625,085 -
Unreserved - 33.818.251 4.756.347
53
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
11 1) Fund BalancedRetained Earnings. (Continued)
Reserves for loans receivable, inventory, prepaid expenditures and advances to c
funds, net of accrued interest recorded as deferred revenue, are established to : that certain assets are already committed to other purposes and are not availablt 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 t(
expended on low and moderate income housing.
Reserves for rent interruption insurance represents monies required to be set a under a bond indenture.
Reserves for encumbrances represent commitments related to unperformed contri
for services and undelivered goods.
Reserves for rate stabilization and other represent amounts restricted to offset fut water rate increases and other uses.
Unreserved-undesignated represents the fund balance or retained earnings remaii after reduction for reserved and designated fund balances or retained earnings.
As of June 30, 1994, the Capital Projects - Redevelopment Agency Fund had a def fund balance of $5,696,542. The deficit is expected to be funded by property
increments received in the future. The General Liability Self-Insurance Fund 1
deficit retained earnings of $213,847. This deficit is expected to be recovered
future interfund premiums. The Golf Course Fund had a deficit in retained earnings
$394,905. This deficit is expected to be recovered by future user charges. The Cap Projects - Community Development Block Grant Fund had a deficit fund balance $1,199,592. The deficit is expected to be recovered from the proceeds of a Section
Loan.
(1 2) Changes in Contributed CaDital In t erna 1
Contributed capital at June 30, 1993 $79,628,166 6,471,940
Additions:
Enternrise Service
Cash 1,027,498 -
Fixed assets 776.750 472.748
Contributed capital at June 30, 1994 %81.432.414-
/13) Risk Management
The City is exposed to various risks of loss related to theft of, damage to, a destruction of assets; errors and omissions; injuries to employees; and natural disaster
54
CITY OF CARLSBAD
Notes to General hnpose Financis,2 Statements
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1 (Continued)
/13) Risk Management. (Continuedl
Effective January 1, 1991, the City became a participating member of the Ca Municipal Insurance Authority (CMIA) risk-management pool. Under this progi pool provides coverage for up to a maximum of $5,000,000 per claim self-insured retention to be provided by the City in the amount of $500,000 per In addition, excess general liability insurance coverage up to $10,000,000 is p for catastrophic losses. Under the terms of the agreement with CMIA, the Cia maintain an unencumbered portion of fund equity equal to $1,500,000. At J
1994, unencumbered fund equity for the General Liability Self-Insurance Fu approximately $1,700,000.
(1 4) Joint Ventures
1:
The Encina Water Pollution Control Facility (the Facility) is a sewer system jointly by the Cities of Carlsbad and Vista, the Leucadia County Water Distrj Buena Vista Sanitation District, the Vallecitos Water District (formerly the San County Water District) and the Encinitas Sanitary District. The Encina Wasi Authority (the Authority) is the operator and administrator of the facility responsible for the management, maintenance and operations of the joint I
Ownership percentages are determined by joint agreement at the time the ass acquired. As of June 30, 1994, the Cities and Districts have the following apprc
City of Carlsbad 25% City of Vista 22% Leucadia County Water District 20% Vallecitos Water District 20% Encinitas Sanitary District 5% Buena Vista Sanitation District 8%
1 ownership interest :
The latest available financial statements of the Authority, dated June 30, 199 the following:
Total assets $1 29,128,651
Total liabilities - 3.560.503
Fund balance &uuaLu&
The Authority does not recognize net income or loss. Net operating expendit excess of users' assessments are treated as accounts receivable on the Aut1 books and charged to users' accounts in the Following year. Conversely, assessments in excess of net operating expenditures are treated as a liabil
credited against users' accounts, also in the following year. Under this bar operating expenditures for the Authority totaled $185,242 in fiscal year 1993.
The City accounts for its portion of the Facility as a fixed asset of the Enterprise Fund.
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/14) Joint Ventures. (Continued)
Encina Financing Joint Powers Authority:
The Encina Financing Joint Powers Authority (the Authority) was created on Febru 1, 1989 between the City of Carlsbad, the City of Vista, the Buena Vista Sanitat
Authority is to issue revenue bonds in order to finance the expansion of the Facili
Repayment of the bonds will be accomplished through payments made by each memt of the Authority pursuant to installation purchase agreements. The individi agreements set forth the purchase price and specify the debt service requirements ' each member.
Encina Financing Joint Powers Authority. (Continued)
The Authority is governed by a Board of Directors, which consists of one direc
appointed by each member.
In August 1989, the Authority issued $33,500,000 of revenue bonds and execut installment purchase agreements for approximately the same amount. The following a table of the outstanding balance owed as of June 30, 1994 by each member and thl approximate share in the additional capacity.
District and the Leucadia County Water District, The primary purpose of
installment Approximate
Member Balance Share
Buena Vista Sanitation District $ 6,473,063 19.75%
Leucadia County Water District 7 , 793,895 23.78% City of Carlsbad 12,415,170 37.88%
City of Vista 6.092.872 18.59%
%32.775.o00 L!ZL@%
The installment balances are secured by a pledge of the revenues from each membei wastewater system, net of a deduction for maintenance and operating COSL Significant covenants within the agreements require the members to mainta insurance on the facility, and establish wastewater rates which are sufficient to pz the operating costs and debt service on the bonds and which will result in net revenuc
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 Enterpri! Fund. The expansion of the Facility is shown as an addition to the fixed assets of ti
Sewer Enterprise Fund.
56
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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/15) Retirement Plan
The City contributes to the California Public Employees Retirement System (PE agent multiple-employer public employee retirement system that acts as a c investment and administrative agent for participating public entities within th
of California. For the year ended June 30, 1994, the payroll for employees cov the PERS was $21,484,348. Total payroll for the same period was $24,210,223.
All full-time employees are eligible to participate as members of PERS. Benef: after an employee has been a member of the plan for five years. Employ1 eligible to retire after ages 50 to 60 with 5 years of credited service. retirement benefits are determined based on age at retirement, the ler membership service and the amount of earnings based on the highest consecutive months average. The PERS also provides death and disability bl These benefit provisions and all other requirements are established by state stat
Employees are required to make contributions ranging from 7 to 9 percent o
pay. The City is required to contribute the remaining amounts necessary to fl benefits for its members, using the actuarial basis recommended by the PERS ac and actuarial consultants and adopted by the PERS Board of Administratio]
employee contributions are made by the City on behalf of the employees.
The amount shown below as the "pension benefit obligation" (PBO) is a stand
disclosure measure of the present value of the pension benefits, adjusted ' effects of projected salary increases and steprate benefits, estimated to be pay the future as a result of employee service to date. The measure is intended users assess the funding status of the PERS on a going-concern basis, assess p made in accumulating sufficient assets to pay benefits when due, and comparisons among employers. The measure is the actuarial present value of a projected benefits, and is independent of the funding method used to det contributions to the PERS.
The PBO was computed as part of actuarial valuations performed as of June 30
Significant actuarial assumptions used in the valuation include (a) a rate of re.
the investment of present and future assets of 8.75 percent a year comp
annually (8.5 percent as of June 30, 1990), (b) projected salary increases of 4.5 I
a year compounded annually (5 percent as of June 30, 1990), attributable to in
(c) additional projected salary increases of 2.5 percent (2.75 percent for Cai
to seniority/merit, and (d) no post-retirement benefit increases. The img
current year contributions from changes in actuarial assumptions is not available
The total overfunded (assets in excess of) pension benefit obligation applicz Carlsbad and District employees was $477,659 and $32,558, respectively, at Ji
1993 (the date of the latest actuarial valuations) is as follows:
safety employees) a year (2 percent as of June 30,1990 for all employees), attri'
57
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(15) Retirement Plan. (Continued)
Car 1 sbad District Total
Pension benefit obligation:
Retirees and beneficiaries
currently receiving benefits
and terminated employees not yet receiving benefits $21,959,239 1,315,403 23,274,64 Current employees:
Accumulated employee
Employer financed-vested 18,356,020 - 18,356,02 Employer financed-nonvested 1.461.749 - 1.461.74
contributions including allocated investment earnings 16,308,719 696,467 17,005, ia
Total pens ion benefit ob1 igat ion 58,085,727 2,011,870 60,097,59
Net assets available for benefits at cost 58.563.386 2.044.428 60.607.81
Overfunded (assets in excess of) pension
benefit obligation &-A2uissm
Changes in pension benefit obligation from last year resulted from the following: - - -
( 1 .167 ,972) 63.532 ( 1,104.44 Changes in benefit provisions $ Changes in actuarial assumptions
Total $(1.167.972) 63.532 1.104.44
The market value of the net assets available for benefits as of June 30, 1993 'H $67,874,964 and $2,430,825 for Carlsbad and the District, respectively.
Of the total change in the PBO for Carlsbad and the District from the prior year, nc 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 bene,
cost method. It takes into account those benefits that are expected to be earned in t
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 cc is expressed as a level percentage of payroll. PERS also uses the level percentage payroll method to amortize any unfunded actuarial liabilities. The amortization peri of the unfunded actuarial liability ends on June 30, 2000.
58
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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1 accrued liability 87.517 -63% 222.238 - 2.
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I (Continued)
(1 5) Retirement Plan. (Continued)
The significant actuarial assumptions used to compute the actuarially deter
contribution requirement are the same as those used to compute the pension t obligation, as previously described.
The actuarially determined employer and employee contributions applicable to th at June 30,1994, based on an actuarial valuation as of June 30, 1993, were as foll
Car 1 sbad Miscellaneous Safety
EmD 1 ovee s EmD 1 ovee s Covered Cove Contributions Pavroll Contributions pavl
contribution $2,009,598 14.47% 1,794 , 268 23 #
unfunded actuarial
Required normal cost
Amortization of the
Total required
Actual employer contributions $1,126,849 8.11% 1,338,145 17< Contributions made by the City on behalf
contributions %2.097.115 JLJJEi2.016.506 26,
of employees 970.266 6.99% 678.361 - 8
contributions $2.097.115 15.lo%- x Total actual
The following is a three-year trend information which gives an indication progress made in accumulating sufficient assets to pay benefits when due:
Car 1 sbad District
1993 1992 1991 1993 1992 1’
Net assets available for benefits as a percentage of pension benefit obligation 100.8% 94.6% 93.2% 101.6% 101.4% 10
of) pension benefit obligation as a percentage of annual covered payroll (2.1%) 13.0% 17.2% - -
Actuarially determined emp 1 oyer cont r ibut ions as a percentage of
Unfunded (assets in excess
(
CITY OF CAFUSBAD
Notes to General Purpose Financial Statements
(Continued)
(151 Retirement Plan, (Continued)
Ten-year trend information is not currently available from the California Public En:
Retirement System: therefore, only the available information is presented.
Required Supplementary Information
Analysis of Frmding Progress
(Unaudited)
Carlsbad
Actuarial Ret Assets Unfunded Pens
Valuation Available Pens ion unfunded Annual Benefit Obligal
as of for Benefits, Benefit Percentage Pension Benefit Covered as a Percentagc
June 30 at Cost Oblieation Rmded Obliaat ion Pavroll Annual Covered P:
1987 $23,855 , 500 26 , 158,700 91.2% 2,303,200 12,147 , 900 19.0%
1990 38 , 955 , 507 41,495 , 649 93.9% 2,540,142 16,071,500 15.8%
1993 58,563,300 58,085,700 100.8% (477 I 700) 22,238,900 (2.1%)
1988 28,385,300 30,249,400 93.8% 1,864,100 13 , 170,OOO 14.2%
1989 32,905,600 35,221,700 93.4% 2,316,100 15,378.600 15.1%
1991 44,473,550 47,736,607 93.m 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%
Required Supplementary Information
Analysis of Funding Progress, Continued
(Unaudited)
District
Overfunded Pens
AMual Benefit Obligat
as of for Benefits, Benefit Percentage Pension Benefit Covered as a Percentage
June 30 at Cost Obligation Funded Oblieation Pavroll Annual Covered Pa
Actuarial Net Assets
Valuat ion Available Pens ion Over funded
1987 $ 823,110 749,880 109.8% 73,230 825,380 8.9%
1988 981,45 1 941,218 104.3% 40,233 960,250 4.2%
1989 1 , 217 , 447 1,141,723 106.6% 75,124 1,026,090 7.4%
1990 1,463,415 1 ~ 374,798 106.a 88,617 1,047,044 8.5%
1991 1,705,889 1,616,014 105.6% 89 , 875 1,229,551 7.3%
1993 2 , 044,420 2,011,870 101.6% 32,560 - - - - 1,897,110 101.4% 27,430 1992 1,924,540
(1 6) Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance
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. Am
deferred may not exceed the lesser of $7,500 or 25% of a participants' "inch
compensation," as defined in the participation agreement. The deferred compensation
available to employees until termination, retirement, death or unforeseeable emergency
60
CnY OF CARLSBAD
Notes to General Purpose Financial Statements
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(1 6) Deferred ComDensation Plan. (Continued)
All amounts of compensation deferred under the plan, all property and rights pu with those amounts, and all income attributable to those amounts, property 01 are (until paid or made available to the employee or other beneficiary) soh property and rights of the City (without being restricted to the provisions of b under the plan), subject only to the claims of the City's general crt Participant's rights under the plan are equal to those of general creditors of the an amount equal to the fair market value of the deferred account of each particj
The City believes it has no liability for losses under the plan but does have the . due care that would be required of an ordinary prudent investor. The City b
creditors in the future. that it is highly unlikely that it will use the assets to satisfy the claims of 1
(17) Post-Retirement Health Care
In addition to the pension benefits described in Note 15, the District, in accc with the District's Administrative Code, provides post-retirement health care b to its full-time employees (including their dependents) who voluntarily retire af age of 50 with no less than 5 years of service and whose age combined with y
service equals 70 or more. Currently, four retirees meet these eligibility requir and are receiving benefits.
The District is to pay 100% of the premiums for health insurance which if coordinated with Medicare and other benefits provided by federal and state law available, to the extent it reduces the cost of insurance premiums. Expendit1 post-retirement health care benefits are funded on a pay-as-you-go Expenditures of approximately $1 1,600 were charged to expense for post-reti
health care costs during 1994. Based on an actuarial valuation performed
November 1991, the District's liability for the current and past service costs c I benefits is approximately $1,600,000.
61
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/18) Segment Information for Enterprise Funds
The City maintains four enterprise funds that provide water, sewer and other ser Segment information for the year ended June 30, 1994 is as follows:
Car 1 sbad Mun i c i pa 1
District Course Sewer Waste Total
Operating revenues $13,566,565 - 4,822,533 85,500 18,474.
Operating expenses : Depreciation and
Other 11.151.956 - 2.915.325 111.956 14.179
Water Go1 f Sol id
amortization 1,134,601 - 1,208,575 320 2,343,
Operating income (loss) 1,280,008 - 698,633 (26,784) 1,951, Nonoperating income (expenses), net 696,667 (672.176) 123.729 37.293 185,
Net income (loss) &4LazuB (572.1761822.362 10.509 2.137.
Contributed capital:
Beginning balance $40,169,911 2,425,190 37,033,065 - 79,628, Current year additions 817.593 - 986.655 - 1.804,
Ending balance --- -81.432.
Additions $ 4.343B 16.246746.446- -5.106.
Delet ions LuLl.22-= -2.530.
Net working capital $16.973.7922.002.39218.009.86269.28937.055.
operating revenues %11.582.840 - i2aALUQ -i2iuBLA
Property, plant and equipment:
Debt payab 1 e from
Total assets $73,215,341 2,030,285 71,849,720 75,794 147,171, I
14.915.339 5.194 28.295.: Total liabilities 13.374.857 -
Total equity %59.840.4842.030.28556.934.3817o.6oo~
62
CITY OF CARLSBAB
Notes to General Purpose Financial Statements
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/19) SDe cia1 Assessment Bonds Without Government Commitment
As of June 30, 1994, the City has four series of Assessment District Bonds outsi in the amount of $22,137,347. These bonds were issued under the provisions Improvement Bond Act of 1911 and 1915 and were used to finance public infrasa improvement projects. Reserve funds of approximately $2,376,000 are held to payment of principal and interest on the outstanding bonds.
For the band 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 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 C Long-Term Debt Account Group and all debt service transactions have been re I in an Agency fund.
j20) Mortgage Revenue Bonds
Single-Family Mortgage Revenue Bonds have been issued to provide funds to pu mortgage loans secured by first trust deeds on newly-constructed and e single-family residences. The purpose of this program is to provide low intere home mortgage loans to persons of low or moderate income who are unable to I for conventional mortgages at market rates. Multi-Family Housing Revenue Box
issued to provide construction and permanent financing to developers of multi-
residential rental projects located in the City to be partially occupied by pen low or moderate income. In May 1993, the City issued $15,920,000 in multi- Housing Revenue Bonds. The purpose of these bonds was to refund the La Apartments 1985 Series A bonds.
The balance of the revenue bonds outstanding under these programs as of June 3( is $29,676,941.
The bonds, together with interest thereon, are limited obligations of the City F
solely from bond proceeds, revenues and other amounts derived solely from
mortgage and developer loans secured by first deed of trust, irrevocable let. credit, and irrevocable surety bonds. In the opinion of City officials, these box not payable from any revenues or assets of the City, and neither the full fa1 credit nor the taxing power of the City of Carlsbad, the state of California, nl political subdivision thereof, is obligated to the payment of the principal or intei
the bonds. Accordingly, no liability has been recorded in the General Long-Tern Account Group.
63
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/20) Mortgape Revenue Bonds. Continued)
On September 6, 1994, the Carlsbad Housing and Redevelopment Cornmissior component unit of the City of Carlsbad, issued $15,500,000 in revenue bonds. bonds were issued to refund the Carlsbad Housing and Redevelopment Commis $16,215,000 Multifamily Housing Revenue Bonds Series 1985 B (Seascape Vi1 Project). The original developer defaulted on the debt and the bond insL Continental Casualty Company (CCC) foreclosed. Since January 1989, debt service been paid by CCC to the bondholders. In December 1993, CCC sold the projeci Seascape Apartments, Inc., a corporation formed by CCC to take over the projc
more favorable rents for low income tenants and an annual administration fee pail the Redevelopment Agency. The variable interest rate is established weekly.
(21) Commitments and Contingencies
The refunding was completed at the request of the new property owner and resultei
The City is a defendant in certain legal actions arising in the normal course operations. In the opinion of management and legal counsel, any liability resuli from these actions will not result in a material adverse effect on the City's finan position.
In May 1993, the City of Carlsbad entered into an agreement with the San Di
Association of Governments (SANDAG), whereby SANDAG will loan up to $10,000,
of TransNet local funds to the City of Carlsbad on a reimbursement basis. The ft are to be used by the City of Carlsbad to accelerate the implementation of Poinsettia Lane and La Costa Avenuefl-5 Interchange Improvement Project. No ma was borrowed under this agreement during the year ended June 30, 1994.
(22) Emenditures in Excess of Aumouriations
Expenditures for the year ended June 30, 1994 exceeded appropriations of the follow funds:
Variance-
Favorable
Budget Actual (Unfavorable)
Special Revenue Funds:
Debt Service Fund:
Community Development Block Grant $ - 26,209 (26,209)
Redevelopment Bonds 3,150,940 3,176,737 (25,797)
64
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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J23) Participation in San DiePo Association of Governments (SANDAG)
The City is a member of the San Diego Association of Governments (SANDAG),
planning, to assist the Member Agencies, and to provide a regional re’
organization for certain federal and state grant projects.
SANDAG is currently comprised of 18 incorporated Cities from the San Diega and the County of San Diego.
Summary financial information for the year ended June 30, 1993 is presented as
powers agreement for the purpose of engaging in regional cooperative compre
Total general fixed assets $ 1,562,345 Total other assets 468,428,541 Total general long-term debt 581,527,548
Total other liabilities 16,509,072
Total fund equity 453,481,814 Total revenues 183,022,585 Total expenditures/expenses 319,719,554 Total other financing sources (uses) 180,894,171 Net increase (decrease) in fund I ba 1 ance/ re t a ined earnings 44,197,202
/24) Subseauent Events
On September 6, 1994, the City of Carlsbad redeemed the outstanding 1983 Family Residential Mortgage Revenue Bonds. The purpose of the program provide affordable housing to first-time homebuyers with average and below i income levels. The outstanding bonds were paid using the proceeds from the the mortgages with the remaining amount of approximately $585,000 paid to tl Utilization of the City proceeds will be decided by the Council in 1994-95.
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GENERAL FUND
The general fund is used to account for resources traditionally associated with goven
which are not required legally or by sound financial management to be accounted another fund.
67
CITY OF WBAD General Fund
Schedule of Revenues - Budget and Actual (Budgetary Bas i s )
Year Ended June 30, 1994
Actual on Variance
Budgetary Favor ab 1 Budget Basis (Un f avo r ab
Taxes :
Property taxes $11,073,500 11,123,765 50,265 Sales and use taxes 10,157,400 10,840,115 682,715 Transient lodging taxes 3,200,000 3,153,084 (46,916 Franchise taxes 925,000 1,183,310 258,310 Real property transfer taxes 150,000 209,251 59,251 Trailer coach in-lieu tax - 1.480 1,480
Total taxes 25,505,900 26.511.005 1.005.105
Licenses and permits:
115,571 Construction permits 250,000 365,571
Business licenses 975,000 1,093,827 118,827 License tax on new construction 200,000 44,496 (155,504 : Other 300.000 318.381 18.381
Total licenses and
permits 1.725.000 1.822.275 97.275
Intergovernmental:
State subventions:
Grant revenue - 28,384 28,384
Vehicle license fees 2,773,500 2,628,592 (144,908 ) Property tax reimbursements 300.000 233.887 (66.113)
Total state subventions 3.073.500 2.862.479 (211,021)
Charges for services: Planning fees 750,000 459,509 (290,491) Building department fees 225,000 275,156 50,156 Engineering fees 1 , 000,000 656,108 (343,892) Weed abatement fees - 29,607 29,607 Ambulance fees 220,000 342,829 122,829 Park and recreation fees 800,000 747,043 (52,957) Other 396.000 559.552 163,552
Total charges for
services 3.391.000 3,069.804 (321,196)
(Continued)
68
CITY OF CARLSBAD General Fund
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Schedule of Revenues - Budget and Actual
(Cont inued)
Actual on Var i an Budgetary Favora (Unf avor
Vehicle code fines 250,000 227,559 (22,4 Other - 3,895 3.8
Total fines and forfeits 250.000 231,454 (18.5 1 Interest income 1,700.000 1.465.717 (234. i
Budget Bas is
Fines and forfeits:
Interdepartmental services: Engineering 450 , 000 732,699 282,(
Legal - 13,824 13,! Other I, 545.000 1.647.053 102. (
services 1,995,000 2.393.576 398 .! Total interdepartmental
Miscellaneous: Sales of maps and publications - 43,089 43,( Sales of property - 15,044 15,( Reimbursed expenditures - 206,517 206,i
Other 339.681 114,121 (225 .!
Total miscellaneous 339.681 378,771 39.(
Total revenues $37.980.081 38 ! 763. 465 783.:
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CITY OF CARLSBAD General Fund
Schedule of Expenditures - Budget and Actual
(Budgetary Basis)
Year Ended June 30, 1994
Actual on Variance Budgetary Favor ab 1 Budget Bas is (Un f avo r ab
160,614 8,17 City council $ 168,786
City manager 776,583 764,008 12,57
108,668 6,001 Community assistance 114,668 76,967 3,03 Hiring center 80,000
City attorney 419,080 374,444 44,63 Finance 1,062,635 1,013,941 48,69 City treasurer 101,500 79,595 21,90 Audit 68,255 56,577 11,67 Purchasing 364,648 347,492 17,151 Human resources 815,625 708,894 106,73 Information systems 403,361 390,025 13,33r Cont ingency 166,436 - 166,431 538,203 720.01' Other 1.258.222
1,191.49'
Police protection 8,926,237 8,777,008 149,22' Fire protection 7,051.940 7.01 9.507 32.43:
General government:
City clerk 32,680 21,554 11,12 Visitors' bureau 261,604 261,604 -
Total general government 6,094,083 4,902,586
Public safety:
-, 15.978.177 15.796.515 181.66: Total public safety
Community development :
Community development 888,229 720,009 168,22(
Engineering 3,210,648 3,124,837 85 y 811
P1 anning 2,122,767 2,066,763 56,OOl
Building inspection 914,450 702.679 211.771
deve 1 opmen t 7,136,094 6.614.288 521.80t
Total community
Library and the arts:
Library 2,516,932 2,457,967 58,963 Arts program 257,117 249,897 7.22C
Total library and the arts 2,774,049 2.707.864 66.185 Community services:
760,834 718,686 42,148 Administration
Street maintenance 1,446,813 1,360,261 86,552
Building maintenance 1,413,120 1,349,353 63,767
Traffic signal maintenance 378,911 283,335 95,576 Street lighting
Total community services 7,590,073 7.247.656 342.417
Parks and recreation 3,562 y 395 3,508,021 54,374
28.000 28,000 -
Total expenditures $39.572.476 37.268.909 2.303.567
70
CITY OF CARLSBAD
General Fund I
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Comparative Schedule of Expenditures
Year Ended June 30, 1994
Var i anc 1993 1994 Increas Actual Actual (Decreas
General government: City council $ 153,747 160,166 694
City manager 839,359 744,963 (94,2 City clerk 20,878 21 7 554 f Visitors' bureau 246,205 222,702 (23,5 Community assistance 111,000 108,668 (2,: Hiring center 76,498 76,967 4
City attorney 362,318 370,109 7,: Finance 860,207 993,163 132,:
City treasurer 71,101 79,595 8,L Audit 41 7 275 26,823 (14,L Purchasing 329,101 338 7 910 921 Human resources 579 7 733 571,196 (892
Information systems 359,784 388 7 402 28,t
Other 946,681 538.203 (408 ,L
Total general government 4,997.887 4,641.421 (356.d
Pol ice protect ion 8,590,925 8 7 760,470 169,! Fire protection 6.750.721 6.986.554 235. I
Total public safety 15.341.646 15.747.024 405, :
Public safety:
Community development: Community development 605,552 705,990 100,d Engineering 3,374,023 3,004,240 (369,'
Building inspection 762,082 702,467 (59,(
Total community development 6,648,158 6,313,757 (334.4
Arts program 238,835 234,075 x
Planning 1,906,501 1,901,060 (5 9'
Library and the arts: Library 2,316,029 2 7 447,865 131,;
Total library and the arts 2.554.864 2.681.940 127.1
Community services: Administration 793 7 719 716,951 (76 , Parks and recreation 3,199,318 3,439,334 240 ,I Street maintenance 1,781,753 1,350,169 (431 9 Building maintenance 1,130,429 1,186,463 56, Traffic signal maintenance 275,924 278,404 2, Street lighting 28,000 28,000 -
Total expenditures $36.751.698- (;L6&
Total community services 7,209.143 6,999,321 (209.
71
CITY OF CARLSBAD General Fund
Comparative Schedule of Revenues
Year Ended June 30, 1994 ,
Variance- 1993 1994 Increase Actual Actual (Decrease
Taxes : Property taxes $12,585,129 11,123,765 (1,461,36( Sales and use taxes 9 , 167 , 849 10,840,115 1 , 672 , 261
Franchise taxes 983 , 584 1,183,310 199,72( Real property transfer taxes 184 , 424 209,251 24 , 82; Trailer coach in-lieu tax 5.867 1.480 (4.38:
Total taxes 26,025,646 26.511.005 485,35!
Transient lodging taxes 3,098,793 3 , 153,084 54 , 291
Licenses and permits:
Construction permits 234 , 063 365 , 571 131,504 Business licenses 1 7 071,342 1 , 093 , 827 22,481 License tax on new construction 143,322 44 , 496 (98,826 Other 276,046 318.381 42.335
Total licenses and permits 1.724,773 1.822.275 97.502
Intergovernmental:
State subventions:
Grant revenue 181.367 28.384 (152.983
Cigarette tax 7 , 845 - (7,845 Vehicle license fees 2,431 , 827 2,628 , 592 196,765 Property tax reimbursements 262,430 233.887 (28.543
Total state subventions 2.702.102 2,862,479 160.377
Charges for services: Planning fees 606,358 459,509 (146 , 849 Building department fees 204 , 894 275,156 70 , 262 Engineering fees 551 7 099 656 7 108 105 7 009 Weed abatement fees 43 7 689 29 , 607 (14,082 Ambulance fees 250 , 515 342 , 829 92 , 314 Park and recreation fees 697,365 747 , 043 49 , 678 Other 481.615 559.552 77 1937
Total charges for services 2.835.535 3,069,804 234.269
(Continued:
72
CITY OF CARLSBAD General Fund
Comparative Schedule of Revenues
(Continued)
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1 Other 187.668 114.121 (73.
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Var i an 1993 1994 Increa
Actual Actual (Decre
Vehicle code fines 227 , 962 227,559 (
Total fines and forfeits 231.877 231.454 2
Fines and forfeits:
Other 3.915 3.895
Interest income 2,093,659 1,465,717 (627 x
Interdepartmental services: Engineering 508 y 499 732 , 699 224 , Lega 1 13 , 683 13,824 Other 1.578.803 1,647.053 68 x
I services 2,100.985 2.393.576 292,
Total interdepartmental
Miscellaneous:
Sales of maps and publications 54 y 959 43,089 (11 , Sales of property 6,169 15 y 044 8, Reimbursed expenditures 1,564,588 206 , 517 (1,358,
Total miscellaneous 1.813.384 378,771 (1.434,
Total revenues $39,709.328 38.763. 465 (945.
73
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues whose expenditures restricted by law or administrative regulation to specified purposes.
Affordable Housing
To account for receipts of fees charged to developers to provide funding assistance affordable housing needs of lower and moderate income households.
Civic Arts Prom-am
To account for transfers from the General Fund to support the civic arts program.
Community Development 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 Histo Preservation.
Gas Tax
To account for receipts and expenditures of money appwtioned under Streets and Highw: 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 designat1 low and moderate income housing.
Mobilehome Rent Control
To account for transfers from the General Fund to support mobilehome rent control.
Police Asset Forfeiture
To account for money received under federal and state programs distributing proper confiscated from illegal activities.
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I Section 8 Housing Authority
To account for federal grants for low and moderate income rental assistance payments.
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 lis 1 and landscaping.
I State Grants
To account for state of California Library and Civic Arts grants. 1
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CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30, 1994
Civic Community Library
Affordable Arts Development Federal Gas Audio-Vis
Insuranc Housing Program Block Grant Grants TaX
Assets
Cash and investments $237,178 309,473 42,116 11,687 2,879,095 128,5
Receivables: Loan - - 5,568 - - -
Taxes Accounts, net e - - - - -
Accrued interest 2,582 4 , 627 - 319 41,673 199
Due from other funds - - - - - -
Due from other governments - - - - - -
Prepaid expenditures - - - - - - -
Total assets s239.760, 314.100 5!L6.&4 12.006 2.920.768 I..3!u!
- - - - - -
Liabilities and Fund Balances
Liabilities:
Accounts payable $- - - 239 104,089 8,7
Accrued wages payable - - - 1,525 5,098 -
Due to other funds I I
Due to other governments - - - - - - - - - -
Total liabilities - - - 1,764 109.187 8.72
Fund balances:
Reserved for prepaid expend i tures - - - - - -
Reserved for loans receivable - - 5,568 - - -
Reserved for low and moderate income housing - - - - - -
Reserved for encumbrances - 98,000 - 4,522 56,044 21,76
Unreserved:
Designated for continuing
Designated for approved
appropriations - - - 14,818 1,045,000 -
capital projects - 121,220 - - - -
Undesignated 239,760 94.880 42.116 19.098) 1.710.537 99 9 97
Total fund balances 239.760 314.100 47.684 10.242 2,811,581 121,74
Total liabilities and
fund balances $239.760 314.100 47.684 12.0062.920.768130.461
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Low and
Moderate Mobilehome Police Section 8 Special
Housing Control Forfeiture Authority Nutrition Districts Grants Total
Income Rent Asset Housing Senior Benefit State
1,402,574 39,746 1,529,255 580,516 - 1,748,361 292,072 9,200,
- - - 107,
23,
29,
21,093 596 22,983 1,715 - 26,698 4,151 128, - - - - - - 1,199, - - - 10,398 35,617 - 420 46, - - - 218,395 - - - 218,
102,387 - - -
5,527 - - - - 17,614 - - - - 28,153 - 1,550 -
1,199,592
2,731.173 40.3421.552.238 839.177 35.617 1.794.223 296.64310.954.
715 - 22,835 8,517 16,279 48,306 35,895 245,
- - - 667,136 15,184 - 420 682,
1 10.620 - 29.825 707,748 33,463 90.348 36.315 1.027,
9,905 - 6,990 12,393 2,000 42,042 - 79,
- - - 19,702 - - - 19,
- - - 218,395 - - - 218, - - - 107,
- - - - 1,817, - - 16,097 4,241 2,045 20,750 36,640 260,
102,387 - - -
1,817,758 - -
131 1,224, - - - - 164,100
- - 921, I - 40,342 1,342,216 191,207) 109 1,683,125 223.557 5,376,
2,720.553 40.342 1,522,413 131.429 2.154 1,703.875 260.328 9,926,
800,408 - - - -
2.731,173 40,342 1.552.238 839.177 35.617 1.794.223 296.64310.954.
77
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1994
Civic Community Librarj
Affordable Arts Development Federal Gas Aud i 0-V i s
Housing Proizram Block Grant Grants Tax Insuranc
Revenues : - 1,186,119 Taxes $- - - -
Intergovernmental - - - 82,316 - - - - - 89,15 Charges for services 234,000 -
Interest income 5,760 16,902 944 1,212 141,790 7,2i Miscellaneous - 20 - - - -
Total revenues 239,760 16.922 944 83.528 1.327.909 96.42
Expenditures :
Current : - - - - Public safety - -
Housing and welfare - - 26,209 -
Library and the arts -
Community services - - - - 1,593,540 -
- -
21,105 - 92 , 550 - 93,32
--
Total expenditures - 21,105 26,209 92.550 1,593,540 93,321
Excess (deficiency) of
revenues over (under)
expenditures 239.760 14,183) (25.265) 19.022) (265,631) 3,10(
Other financing sources (uses): - - Operating transfers in - 9.462 - -
Total other financing - - sources (uses) - 9,462 - -
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses 239,760 5,279 (25,265) (9,022) (265,631) 3,100
Fund balances at beginning of
year - 308,821 72,949 20,239 3,077,212 118,640
- - - - - Residual equity transfers in -
Residual equity transfers out - - - (975) - -
Fund balances at end of year $239.760 314.100 47.684 10.242 2.811.581 121.740
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Low and
Moderate Mobilehome Police Section 8 Special
Hous ina Control Forfeiture Authoritv Nutrition Districts Grants Totals
Income Rent Asset Housing Senior Benefit State
322,067 - - - - - - 1,508,l - - 107,591 2,678,074 105,354 - 289,190 3,262,s - - - - - 1,606,595 - 1,929,7
162 - - 123,605 86.556 2,303 - 212.6
380.991 1,694 198,160 2,809,626 191,910 1,694.792 303.744 7,346.4
58,762 1,694 90,569 7,947 - 85,894 14,554 433,3
- - 604,628 - - - - 604,6
101,494 21,352 - 2,796 , 680 189 , 756 - - 3,135,4 - - - - - - 313 , 138 520,l - 3.000.0
101,494 21,352 604,628 2,796.680 189,756 1,406,512 313,138 7.260.2
- - 1.406.512 - - -
279,497 (19.658) (406.468) 12,946 2,154 288.280 (9.394) 86.1
- - - - - 14.563 - 24.c ~-
- - - - - 14.563 - 24,(
279,497 ( 19,658) (406,468) 12 , 946 2 , 154 302,843 (9,394) 110,
2,441 ,056 - 1,928,881 118,483 - 1,401,032 269,722 9,757.(
- 60,000 - - - - - 60,1 - - - - - - -2 -
2.720.553 40.342 1.522.413 131.429 2.154 1.703.875 260.3289.926.:
79
CITY OF 0
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
Year Ended June 30, 1994
Affordable Housing Civic Arts Program
Actual on Variance- Actual on Variance
Budgetary Favorable Budgetary Favorabl
Budget Basis lbfavorablel Budget Basis funfavorat
Revenues : - - - - Taxes $- -
Intergovernmental - -
Charges for services - 234, OOO 234,000 -
Interest income - 5,760 5,760 - 16,902 16,902
- 20 20 Miscellaneous - - -
Total revenue - 239,760 239,760 - 16,922 16.922
- - - - - -
-- - -~
-
Expend i t ur es :
Current : - - - - Public safety I - - - - - Housing and welfare - -
Library and the arts - - - 239,400 119,105 120,295
Community services - - - - - -- - -
Total expenditures - - - - 239,400 119,105 120,295
Excess (deficiency) of
revenues over (under)
expenditures L 239.760 239.760 (239,4001 (102.183) 137.217
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Communitv Development Block Grant Federal Grants
Actual on Variance- Actual on Variance-
Budgetary Favorable Budgetary Favorab 1 e
Budget Basis JUnfavorablel Budget Basis JUnfavorablel
- - - - - - - - - 60,000 82,316 22,316
- 944 944 - 1,212 1,212
- - - - - -
- - - - - - -
- 944 944 60.000 83.528 23.528
- - - - - - - 26,209 (26,209) - - - - - - 142,048 111,890 30,158 - - - - - - -
- - 26.209 (26.209) 142.048 111,890 30.158
81
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1994
Gas Tax Librarv Audio-visual Insura
Actual on Variance- Actual on Variancl
Budgetary Favorable Budgetary Favorab
Basis (Unfavorable) Budget Basis (Unfavoral Budget
Revenues :
Taxes $ 1,130,OOO 1,186,119 56,119 - - -
Intergovernmental - - - - - -
Charges for services e - - 120,000 89,152 (30,841
Interest income 90,OOO 141,790 51,790 6,000 7,274 1,27d
Miscellaneous e - - - - - --
Total revenues 1,220.000 1.327.909 107,909 126,000 96,426 (29,574
Expend i tur es :
Current :
Public safety - - - - - -
Housing and welfare - - - - - -
Library and the arts - - - 123,601 115,091 8,510
. Community services 2.710.083 2.694.584 15,499 - - -
Total expenditures 2,710,083 2.694.584 15.499 123,601 115,091 8.510
Excess (deficiency) of
revenues over (under)
expend i tures $(1.490.083)(1.366.675) 123.408 2.399 (18.665) (21.064
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1 270.710279.497 8.787 160.000) (19.658) 40.342
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Low and Moderate Income Housing Mobilehome Rent Control
Actual on Variance- Actual on Variance-
Budgetary Favorable Budgetary Favorab 1 e
Budget Basis I Un f avorab 1 el. Budget Basis (Unfavorable)
- - - 320 y 000 322,067 2 y 067 - - - - - I - - - - - -
75,000 58,762 ( 16,238) - 1,694 1,694 - - - - 162 162
395.000 380,991 (14.009) - 1.694 1,694
- - - - - -
124,290 101,494 22,796 60,000 21,352 38,648 - - - - - - - - - - - -
124,290 101.494 22,796 60.000 21,352 38,648
83
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1994
Police Asset Forfeiture Section 8 HousinE Authoritj
Actual on Variance- Actual on Variant
Budgetary Favorable Budgetary Favorat
Budget Basis /Unfavorable) Budget Bas is IUnfavorz
Revenues : - - - - Taxes $- -
Charges for services - - Intergovernmental 400,OOO 107,591 (292,409) 2,890,000 2,678,074 (211,9:
Interest income 60,000 90,569
Miscellaneous - - - - 123.605 123.6C
Total revenues 460.000 198.160 (261.840) 2.898.000 2.809.626 188.37
- - - -
30 , 569 8,OOo 7,947 (5
Expenditures:
Current :
Public safety 794,445 784,825 9,620 - - -
Library and the arts - - - - - -
Community services - -
Housing and welfare e - - 2,881,187 2,800,921 80,2t
- - .- -
Total expenditures 794.445 784,825 9,620 2.881.187 2.800.921 80.261
Excess (deficiency) of
revenues over (under)
expenditures s1334.445) (586.665) (252.220) 16.813.8.705 U!
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Senior Nutrition Special Benefit Districts
Actual on Variance- Actual on Variance-
Budgetary Favorable Budgetary Favorable
Budget Basis 1 Un f avorab 1 e ) Budget Basis fUnfavorable1
- - - - - -
103,000 105,354 2,354 - - -
- - - 1,595,440 1,606,595 11,155 - - - 42,500 85,894 43,394
115.000 86,556 (28.444) 2 000 2.303 303
2 18,000 191.910 (26,090) 1,639,940 1,694.792 54,852
- - - - - -
192,011 191,801 2 10 - - - - - - - - - - - - 1.831.140 1,427.262 403,878
I 192,011 191.801 210 1.831.140 1,427,262 403,878
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CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1994
State Grants Totals
Actual on Variance- Actual on Varianc
Budgetary Favorable Budgetary Favoral
BudEet Basis (Unfavorable) Budget Basis JUnfavor;
Revenues :
1,450,OOO 1,508,186 58 9 - - Taxes $-
Intergovernmental 151,670 289,190 137,520 3,604,670 3,262,525 (342,
Charges for services - - - 1,715,440 1,929,747 214,
Interest income 20,000 14,554 (5,446) 301,500 433,302 131,(
Miscellaneous - - - 117.000 212.646 95.
Total revenues 171,670 303,744 132,074 7,188,610 7,346,406 157.
Expenditures:
Current :
Public safety - - - 794,445 784,825 9,f
Housing and welfare - - - 3,257,488 3,141,777 115.;
Library and the arts 363,485 349,909 13,576 868,534 695,995 172,:
Community services - - - 4,541,223 4,121,846 419.:
Total expenditures 363.485 349.909 13.576 9,461,690 8,744,443 717.2
Excess (deficiency) of
revenues over (under)
expenditures $(191.815) 146.165) 145.650 (2.273-080 l(1.398.037) 875.r,
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I DEBT SERVICE FUNDS
Debt Service Funds are used to account for accumulation of resources for, and payme
principal and interest on the City's general bonded debt and special assessment bonc
which the City is obligated in some manner.
College Boulevard
To accumulate property assessments levied for payment of debt service on 1986 Cc Boulevard Assessment District Bonds.
HOSD Grove COPS
To account for payment of debt service on the 1988 Certificates of Participation ism I purchase Hosp Grove.
Parking Authority
To account for lease payments received by the Parking Authority from the General FUI payment of debt service on 1969 and 1981 Parking Authority Revenue Bonds.
Redevelopment Bonds
To account for payment of debt service on bonds issued to finance improvements fc Carlsbad Redevelopment Agency.
89
CITY OF CARLSBAD Debt Service Funds
Combining Balance Sheet
June 30, 1994
Hosp College Grove Parking Redevelopment
Boulevard COPS Authori tv Bonds -
Assets
Cash and investments $1,191,949 872,882 375,584 2,005,865 4,d Receivables:
22,109
6,' 17,709 -
Total assets $8.163.242902.854 384.056 2.045.683 u
Taxes - - -
Accrued interest 16,293 29,972 8.472
Special assessments 6,955,000 - - -
Liabilities and Fund Balances
Liabilities: Deferred revenue $6,955,000 - - - 6,5
Total liabilities 6,955,000 - - - 6.!
Fund balances:
Reserved for debt service 1,208,242 900,229 384,056 2,045,683 4,5 Unreserved: Designated for arbitrage - 2,625 - - -
Total fund balances 1,208.242 902,854 384.056 2.045.683 4.5
Total liabilities and fund
balances $8.163.242 902,854 384,056 2 - 045.683 11.4
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CITY OF CAIUSBAD Debt Service Funds 1
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Combining Statement of Revenues, Expenditures and Changes in Fund Balancer
Year Ended June 30, 19194
Hosp College Grove Parking Redevelopment Boulevard COPS Authority Bonds -
Revenues : - 1,288,269 Taxes $ 687,308 -
Interest income 53.424 74.124 32,287 61.391 -
Total revenues 740.732 74,124 32,287 1.349.660 -
1 Expenditures : Debt service: Principal retirement 290,000 275 , 000 200,000 -
Interest and fiscal charges 588,043 594,371 95,439 885,375 Payment to refunded bond
Debt issuance costs - - - 1,709,777 - - - 489,113 escrow agent 4 State mandated payment - - - 92,472 -
Total expenditures 878.043 869.371 295,439 3.176.737 -
Excess (deficiency) of revenues over (under)
expenditures (137.311) (795.247) (263.152) (1.827.077) I_
I Operating transfers out - - - (2,610,517) (
escrow agent - - - (10,964,372) (1 l Proceeds of refunding bonds - - - 10,964,372 1
- 4.220.728 - discount - -
Other financing sources (uses):
Operating transfers in 38,000 792,025 46,955 474 , 777
Payment to refunded bond
Proceeds of bonds, net of
Total other financing
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses (99,311) (3,222) (216,197) 257,911
2,084.988 - sources (uses) 38,000 792.025 46.955 I
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Fund balances at end of year
I of year 1,307,553 906,076 600,253 1.787.772 -
- m 902.854 384,056 2.045 ~ 683 -
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CITY OF CARLSBAD Redevelopment Bonds Debt Service Fund
Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30, 1994
Actual on Variance Budgetary Favorable Budget Basis (Unfavorab
Revenues : Taxes $ 1,280,000 1,288,269 8,26 Interest income 60.000 61.391 1.39
Total revenues 1,340,000 1.349.660 9.66
Expenditures: Debt service:
Interest and fiscal charges 859,550 885,375 (25,82 Payment to refunded bond escrow agent 1,709,777 1,709,777 -
State mandated payment 92.500 92.472 2
Total expenditures 3,150.940 3,176.737 (25.79
Excess (deficiency) of revenues over (under)
expenditures $!I. 810,9 40) (-827.077) (16.13
Debt issuance costs 489,113 489,113 -
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CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the purchase or construction of major ca] 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.
City and County Agencies
To account for receipts from other cities and the County of San Diego for st construction and improvements.
Community DeveloDment Block Grants
To account for federal block grants for community development.
Communitv Facilities District No. 1
To account for civic facilities, freeway interchanges, and road segments financed Community Facility District No. 1 (Mello-Roos) funding.
General CaDital Construction
To account for transfers from the General Fund for various municipal capital projects.
Palomar Airport Road East Proiect
To account for funding and expenditures related to construction of Palomar Airport Roac
El Camino Real and east to San Marcos city limits. Funding is provided by the cities of Marcos and Vista, San Diego County Airport, Sales TaxlTransNet, Traffic Impact fees, direct developer contributions.
Park Development
To account for receipts of fees charged to developers for park acquisition and developmen
Planned Local Drainage Areas
To account for receipts of fees charged to developers for drainage facilities necessitated
growth.
94
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I Public Facilities Construction
B necessitated by growth. To account for receipts of fees charged to developers for specific capital pr
Rancho Santa Fe Road Project
To account for receipts of fees charged to developers for Rancho Santa Fe road constr
and improvements. A Community Facilities District (Mello-Roos) is proposed.
Redevelopment Agency
To account for financial resources segregated for the rehabilitation of commerciz
public property and capital projects located in the Carlsbad Village area.
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I Redevelopment Area ?J
To account for the costs of a feasibility study on establishing a second redevelopment Fund closed to General Fund during the year.
I Sales TadTransNet
1 To account for receipts of County sales taxes allocated by the San Diego County RE Transportation Commission to finance transportation projects.
State Grants
To account for capital projects financed by state grants including Local Transpor
Funds and Carlsbad Boulevard Shore Protection.
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Traffic Impact Projects
To account for receipts of fees charged to developers for street constructio improvement.
95
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet
June 30, 1994
Palm
City Community Community Airpo
and Development Facilities General Road
Assessment County Block District Capital East
Districts Agencies Grants No. 1 Construction Proie
Assets
Cash and investments $1,645,829 1,271,150 - 9,257,242 3,462,402 154,s
Receivables:
Taxes - - - 1,459 - -
Accounts, net - 173,644 - - - -
- 2,s
Due from other governments - - 36,142 - - 479,5
Advances to other funds - - - - 1.700, OOO -
19,001 - 140,021 Accrued interest 10,818
Total assets $1.656.6 47 1.463.795 36-142 9.398.722 L?J&uQ2 m
Liabilities and Fund Balances
Liabilities:
Accounts payable $- 240 6 I 244 5,077 79,580 406,7!
Accrued wages payable - - 1,154 - - -
Due to other funds - - 1,228,336 - - -
Advances from other funds - -
Deposits payable - - - 913,000 - -
Deferred revenue - -
- - - -
- - - -
240 1,235.734 918.077 79.580 406.75 Total liabilities -
Fund balances (deficit):
Reserved for advances to
other funds - - - - 1,700,000 -
Reserved for encumbrances 66,539 3,704 131,120 495,185 114,869 442,07
Unreserved:
Designated for approved
capital projects 1,427,546 484,426 - 2,345,970 3,267,953 126,88
Undesignated 162,562 975,425 (1,330,712) 5,639,490 - (338.75
Total fund balances
(def ici t ) 1,656,647 1,463,555 (1,199,592) 8,480,645 5,082,822 230,191
Total liabilities
and fund balances $1.656.6r17 1.463.795 36.142 9.398.722 5.162.402 636.95
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Planned Rancho
Local Pub1 ic Santa Fe Traffic
Park - Drainage Facilities Road Redevelopment Sales Tax/ State Impact
Development Areas Construction Proiect Aaencv - TransBet Grants Proiects
3,134,734 3,211,371 9,457,677 2,607,811 2,702 , 775 1 , 024,849 333,468 2,045,383
- - - - - - - - - - - - - - - -
46,786 47,929 139,697 38,336 23,668 16,084 8,858 31,684 - - - - - - - - - - - - - - - -
3.259.300 9.597.37 4 2.6 46.147 2.726.44s 1.040.933342.3262.077.067
- - 4,598 - 33,048 3 142 759 - - - - 20,114 - - -
- - - - - - - -
2,550,000 300,000 950,000 - 8,369,823 - - 750 , OOO
- - - 71.034 20.400
2,550.000 300.000 954,598 8.422.985 3 71,176 771,159
- - - - - - - - - - -
-
- - - - - - - -
- - 177,001 25,814 42 , 116 43,409 27,618 6 , 630
- 219,959 5,334,408 142,222 2,169,636 340,085 266,604 1,299,278
631.520 2,739,341 3.131.367 2.478.111 (7.908.294) 657.436 (23.072) -
631,520 2,959,300 8,642,776 2,646,147 (5 , 696,542) 1,040,930 271 9 150 19305 * 908
3.181.520 3. 259.30Q 9.597.37 4 2.646.147 2.726.443 1.040.933 342.3262.077.067
97
CITY OF WBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1994
Palmar
City Community Community Airport
and Development Facilities General Road
Assessment County Block District Capital East
Districts Agencies Grants No. 1 Construction Project w
Revenues :
Taxes $- - - 2,042,901 - -
Charges for services - - - 497,767 - -
Interest income 61,417 75,860 I 475,585 I 5,112 '
Contributions from
property owners 15,000 - - - 207 ,OOO -
Miscellaneous - 716.245 - - 3,024 -
Intergovernmental - 173,644 1,151,152 - 760,340 479,536
Total revenues 76,417 965.749 1.151.152 3.016.253 970,364 484.648 .
Expenditures:
Current :
Capital outlay 49,279 133.870 2.215.762 1.387.774 753.895 4,516.341 -
Total expenditures 49,279 133.870 2.350.744 1.487.413 753.895 4,516.341 -
Excess (deficiency) of
revenues over (under)
expenditures 27.138 831.879 (1.199.592) 1,528,840 216.469 (4,031,693) 1
General government - - 134,982 99,639 - -
Other financing sources (uses):
293,550 3,485,867 Operating transfers in - - - -
Operating transfers out 138.000) 1399.773) - /300.000) - - -
Total other financing
sources (uses) 138.000) 1399.773) - 1300.000) 293.550 3-485.867 -
Excess (deficiency) of
of revenues and other
financing sources over
(under) expenditures
and other financing
uses (10,862) 432,106 (1,199,592) 1,228,840 510,019 (545,826) 1'
Fund balances (deficit) at
beginning of year 1,726,946 1,031,449 - 7,251,805 4,585,102 776,024 45
- - Residual equity transfers in - - - -
Residual equity transfers
- out (59,437) - - - I 12,299) -
end of year $1.656.6 47 1.463.555 (1.199.59 2) 8.480.645 5.08 2.822 230.x98 63
Fund balances (deficit) at
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Planned Rancho
Local Pub1 ic Santa Fe Traffic
Drainage Facilities Road Redevelopment Redevelopment Sales Tax/ State Impact [ Areas Construct ion Project Aaencv Area I1 Translet Grants Proiects
- - - - - - - - - - - 30,800 - 738,442 1,394,485 -
201,018 916,563 2,317,011 37,426 - - - 207,213
171,026 485,159 110,984 113,471 660 54,659 34,900 119,345
- 122,851 - - - - - - - - - 26.572 12.929 - - - 1 372.044 1,524.573 2.427.995 208.269 13,589 793,101 1.429.385 326,558
- - 27,615 608,069 375 - 1,OOO -
39.119 245.306 - 798,606 85.969 2.301.117 - 406,215
- 798.606 113,584 2,909,186 375 406,215 40.119 245,306
372,044 725.967 2.314.411 (2,700,917) 13,214 386,886 1.389.266 81.252
- - 300,000 2,610,517 - - - - - - - 1474.777) - (1.112.900) (1.259.403) (713,791)
- - 300.000 2,135,740 - (1.112.900) (1.259.403) (713.791)
372,044 725,967 2,614,411 (565,177) 13,214 (726,014) 129,863 (632,539)
2,587,256 7,916,809 - (5,131,365) ( 13,214) 1,766,944 141,287 1,938,447
- - - - - - - -
8.642.776 2.646.147 (5.696.5 42) - 1,040.930 271.150 1.305.908
-
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I ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operate manner similar to private business enterprises - where the intent of the governing bc
that the costs of providing goods or services to the general public be financed or recc I primarily through user charges.
Carlsbad Municipal Water District
To account for the operation, maintenance, planning, capital facility financing, a 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 I sys tem.
Solid Waste
To account for revenues and expenses of the City's solid waste source-reductio
recycling programs.
101
CITY OF CARLSBAD Enterprise Funds
Combining Balance Sheet
June 30, 1994
Car lsbad Mun i c ipa 1 Water District Golf Course Sewer Solid Waste - To Assets
Current assets: Cash and investments $16,201,519 1,972,940 17,574,238 73,356 35,82
1 Taxes 10 , 055 - - -
Accounts, net 3,182,582 - - 3,18 1 , 127 53 - 20' Accrued interest 247 , 794 29,452 259,798 Due from other funds - - 209,924 Due from other governments 18,594 - 1,027,396 - 1,041 Inventory 216,559 - 8.338 - 224
Receivables :
-~
Total current assets 19.877.103 2.002.392 19,079.694 74.483 41.03.
Restricted assets: Cash and investments 2,018 , 799 - 3,175,938 - 5,19~ Accrued interest - - - 9,646 --
Total restricted assets 2.018.799 - 3,185,584 - - 5.20
Property, plant and equipment 62,602,791 27,893 60,648,631 1,639 123,28 Less accumulated depreciation (11.283.352) - (11.064.189) (328) 122.34
equipment, net 51,319.439 27.893 49,584.442 1,311 100.93 Property, plant and
Total assets $73.215.341 2.030.285 71.849.72Q 2Lz24u
Liabilities and Fund Eguitv
Current liabilities: Accounts payable $ 1,329,199 - 206,663 5,143 1,54' Accrued wages payable 283 , 908 - 42,521 - 32( - - 20! Due to other funds 209,924 -
Current portion of long-term debt 817,483 - 289,782 - 1,lO' Deposits payable 135,639 - 185,991 51 32 1
Total current liabilities 2.776.153 - 724.957 5,194 3,50(
-~
Current liabilities payable from restricted assets - accrued - 47: 344.875 -~
Deferred revenue - - 2,070,778 - 2,07( - 901 Certificates of participation, net of unamortized issuance costs of $293,811 9,571,189 - - - 9,57: Installment purchase agreement, net
interest payable 127.158 -
Loan payable 900,357 - -
of unamortized discount of $350,659 - - 11,774,729 - 11.771
14,915,339 5.194 28.29! Total liabilities 13,374,857 -
Fund equity: Contributed capital 40,987,504 2.425.190 38.019.720 - 81,432
Reserved for debt service 793 , 597 - 2,550,927 - 3 , 344 - - 280 Reserved for rate stabilization 280,561 -
Unreserved 17,778,822 (394,905) 16.363.734 70.600 33.818
Total retained earnings 18.852.980 1394.905) 18,914.661 70.600 37,443
Total fund equity 59,840,484 2,030,285 56,934,381 70.600 118,875
Total liabilities and
Retained earnings :
fund equity $73.215.341 2.030. 285 71.849.72Q 75.794147.171
102
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and
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I Changes in Retained Earnings
Year Ended June 30, 1994
Car lsbad
Municipal
Water District Golf Course Sewer Solid Waste Tot,
Operating revenues:
Water sales $12,550,905 - - - 12,551
Sewer services charges - - 4,718,689 - 4,711
Other charges for services 499,586 - 75,839 85,500 661
Contributions from other government - - 21
28.005 - 32
Total operating revenues 13.566.565 - 4,822.533 85.500 18.47
agencies 215,642 -
Operating expenses:
Plant operations - - 1,575,214 - 1,57!
Purchased water 7,269,101 - - - 7,26!
1,208,575 328 2.34:
General and administrative 3.882.855 - 1.340.111 111.956 5.334
Total operating expenses 12.286.557 - 4.123.900 112.284 16.52:
Operating income (loss) 1.280.008 - 698,633 126.784) 1.95
Depreciation and amortization 1,134,601 -
Nonoperating revenues (expenses):
Interest income 878,139 105,934 991,713 4,061 1,97'
Interest expense and fees (802,944) - (832,630) - (1,635 Gain (loss) on sale of property ( 96,027) - (288 1 - - - 74 Property taxes 744,209 -
Miscellaneous income (expense) - (778,110) - 33,232 (74
135,066) 163 Amortization of issuance costs (26.710) -
( 9c
-
Total nonoperating revenues
(expenses) 696.667 (672.176) 123.729 37.293 18!
Net income (loss) 1,976,675 (672,176) 822,362 10,509 2,13'
Retained earnings at beginning
of year 16,876.305 277.271 18.092.299 60.091 35.30t
Retained earnings (deficit) at
end of year $18,852.980 (394.905) 18.9 14.661, 7o.60037.443
103
CITY OF WBAD Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 1994
Car lsbad Mun i c ipa 1 Water District Golf Course Sewer Solid Waste 2
Cash flows from operating activities: Operating income (loss) $ 1,280,008 - 698,633 (26,784) 1,9! Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Decrease [increase) in due from
Increase (decrease) in due tolfrom
Increase (decrease) in deposits payable 8 y 640
Increase (decrease) in accrued wages
1,208,575 328 2,4 Depreciation and amortization 1,134,601 - Decrease increase) in receivables (606,467) - - -
other governments ( 18,592) - - - Decrease (increase) in inventory 2 y 470 - 2,229 -
other funds 5,266 - (5,266)
Increase (decrease) in accounts payable 186,779 (25) 94,716 3,833 2:
payable 16,747 - 92 (1,260) 1 Increase (decrease) in loans payable 942.840 - -
( 6'
(
- - - 40,382
- 94 --
Net cash provided by (used in) operating activities 2.952.292 (25) 2,039,361 (23,883) a
Cash-flows from capital and related financing activities:
Purchases of property, plant and equipment (4,015,294) (16,245) (16,657) - (490' - (1.M Principal payment on bonds (730,000) Interest and other fees paid on bonds (810,751) Property taxes received 744,209 - - -
Capital contributions received 653,132 - 374.365 33.232 1,Q(
- (1,6: 7r
- (274,630) - (839 , 610)
Net cash provided by (used in) capital and related financing activities (4,158,704) (16.245) f756.532) 33.232 (4,81
Cash flows from investing activities: Investments in restricted assets 283,964 - (76,969) - 2( Interest on investments 891,421 105.751 968,547 3,869 1,9(
Net cash provided by investing activities 1,175,385 105,751 891,578 3.869 2.1'
cash equivalents (31 , 027) 89,481 2,174,407 13,218 2,2d
16,232,546 1.883.459 15,399,831 60,138 33.57 of year
Net increase (decrease) in cash and
Cash and cash equivalents at beginning
Cash and cash equivalents at end of year 1.972.94Q 17.574.238 73.356w $16.201.519
Supplemental schedule of noncash
Investing and financing activities:
Capital assets contributed by contractors $ 16 4.46Q - 612.29Q -77 -
Capital assets expensed $ - 778.1 10 - -77 -
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I 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 a 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.
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I Health Insurance
I full-time City employees.
To account for charges to other funds and from employees to provide health insuranc
Workers' ComDensation
To account for charges to other funds to insure against Workers' Compensation claims. I
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CITY OF CARLSBAD
Internal Service Funds
Combining Balance Sheet
June 30, 1994
General
Liability
Data Fleet Self- Health Workers I
Processinp: Management Insurance Insurance Coma ensat ion Tota
Assets
Current assets:
Cash and investments $ 671,884 3,690,035 2,338,603 1,727,004 2,282,566 10,71C
Receivables:
I Accounts, net - 6,192 - - -
Accrued interest 9,932 54,343 34,658 26,735 34,238 155
- 8:
Total current assets 681,816 3,834.353 2,373.261 1.753.739 2,316,804 10.955
Inventory - 83.783 - -
Property, plant and equipment:
Equipment and vehicles 1,315,102 4,750,914 - - - 6,066
Less accumulated depreciation (415.740) (2,441,395) - - - (2.85;
Property, plant and
equipment, net 899.362 2,309.519 - - - 3.205
Total assets $1.581.178 5.1 43.872 2.373. 261 1.753.739 2.316.804 34.168
Liabilities and Fund Equity
Current liabilities:
Accounts payable $ 41,207 289,447 55,608 39,999 330 42f
Accrued wages payable 23,140 24,331 4,430 - 6,905 5C
Estimated claims payable - - 617,070 377.000 988.352 1.98:
Total current liabilities 64.347 313.778 677,108 416.999 995.587 2.46;
Fund equity:
Contributed capital -
Retained earnings (deficit)
1,000,000 6,944
509,946 2.802.291 (213.847) 1,336,740 321.217 4,756
Total fund equity 1,516.831 5,830.094 1,696,153 1,336,740 1,321,217 11.701
Total liabilities and
contributed from other funds 1,006,885 3,027,803 1,910,000 -
- unreserved
fund equity $1.581.178 6. 143,872 2.373.261 1.753.739 2.316.804 14.16b
108
CITY OF WBAD
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 1994
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I Net income (loss) 74,272 544,194 (195,078) (49,655) 919 3
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Liabi 1 i ty
Data Fleet Self- Health Workers'
Processina Management Insurance Insurance Camp ensation J
Operating revenues:
Other charges for services $707.418 2,084,049 766,919 1,366,158 611,639 5,s:
Miscellaneous - 61.894 14,197 340.509 54.138 - 4'
Total operating revenues 707.418 2,145,943 781.116 1.706.667 665.777 6-@
Operating expenses: - 6( Depreciation and amortization 80,939 526 , 794 - - - 4: Fuel and supplies - 434,204 - -
Claims expense - - 1,043,564 1,795,603 712,642 3,5!
General and administrative 585.972 843.192 57.351 60.436 76.605 u
Total operating expenses 666.911 1,804,190 1,100,915 1.856.039 789,247 Q
Operating income (loss) 40.507 341.753 (319,799) 1149.372) (123.470) /2
Nonoperating revenues (expenses):
Interest income 34,725 191,941 120,721 99,717 124,389 5'
Gain (loss) on sale of property 1960) - - - - ~__
Total nonoperating revenues I (expenses) 33,765 191.941 120,721 99,717 124,389 - 5
Income (loss) before operating
transfers 74,272 533,694 ( 199,078) (49,655) 919 3
- -- Operating transfers in - 10,500 4.000 -
Retained earnings (deficit) at
beginning of year 435.674 2.258.097 118,769) 1,386,395 320,298 a
Retained earnings (deficit) at
end of year $509.946 2.802.291 1213.847) 1-336.7 4Q 321..217u
109
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30, 1994
General
Liabi li ty
Data Fleet Self- Health Workers I
Processing Management Insurance Insurance Compensation 2
Cash flows from operating activities:
Operating income (loss) $ 40,507 341,753 (319,799) ( 149,372) ( 123,470) (.
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities: Depreciation and amortization 80,939 526,794 - - -
(Increase) decrease in receivables - 409 Decrease in inventory - - - -
payable 29,973 111,805 (14,125) 1,481 (37)
- - -
13,278
Increase (decrease) in accounts
Increase (decrease) in accrued
Increase (decrease) in estimated
wages payable 446 1,347 4,430 - 6,905
claims payable - - (254.087) 44.000 119.915) J
Net cash provided by operating
activities 151.865 995,386 1583.581) (103,891) (136.517) -
Cash flows from noncapital financing
activities:
- Transfers from other funds - 10.500 4.000 - -
Cash flows from capital and related
Purchases of property, plant and
financing activities:
- -0 equipment 157.429) 1529.191) - -
Cash flows from investing activities -
Interest on investments 33,250 184,665 129,400 99,876 125,789 - 5
Net increase (decrease) in cash and
cash equivalents 127,686 661,360 (450,181) (4,015) (10,728) 3
Cash and cash equivalents at beginning
of year 544.198 3,028,675 L798,784 1.731.019 2,293,294 10.3
ULZ Cash and cash equivalents at end of year $671.884 3.690.035 2.338.603 1.727.004 2.282.566
Supplemental schedule of noncash
investing and financing activities -
capital assets contributed by other
funds $390.643 82.105 - - - 4'
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AGENCY FUNDS
Agency Funds are used to account for assets held by a government for other fi
governments or individuals.
Deferred Comuensa tion
To account for employees' deposits in deferred compensation plans offered by the City.
Contractors' and Miscellaneous Deposits
To account for money deposited by contractors for designated future development and o
miscellaneous deposits.
Assessment Districts
To account for the debt service transactions on assessment district bonds for which the is not obligated.
112
CITY OF CARLSBAD Agency Funds
Combining Statement of Changes in Assets and Liabilities
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Year Ended June 30, 1994
Balances at Balances Julv 1, 1993 Additions Reductions June 30. 3
6.991.(
Deferred Comuensat ion: Assets :
Liabilities:
Deferred compensation investments $5.905.967 1.085.076 -
Contractors’ and Miscellaneous Deuosits: Assets: Cash and investments $ 8,606,057 30,506,631 (32,251,425) 6,861,Z Accrued interest 12.536 71.115 ( 15,077) 68.5
Total assets w 30.577.746 (32.266.502) 6.929.E
Liabilities: Accounts payable $ 2,047 7,732 (2,047) 7,i
Total liabilities $8.618.5193 17.898,183 (19.586.9391 6.929.r
Deposits payable 8,237,926 17,712,740 (19,584,892) 6,365,i Accrued interest payable 378,620 177.711 - 556.3
Assessment Districts: Assets: Cash and investments $ 4,173,183 2,922,199 (2,774,887) 4,320,L E Taxes receivable - 860 -
Accrued interest 46,428 73,029 (71,553) 47.5
Total assets $ 4,219.611 2.996.088 J2.846.44Q) 4.369.2
Liabili t ies: 3 4,219,611 2.913.060 i2.763.8041 4.368.8
Total liabilities $ 4,219.611 2.913. 452 -4.369.2
- 392 - Accounts payable $ Assessments payable
Totals - All ARenCv Funds: Assets: Cash and investments $12,779,240 33,428,830 (35,026,312) 11,181,7
Taxes receivable - 860 -
Accrued interest 58,964 144.144 f86.630) 116.4
Total assets $18.744.171 34.658.9 1Q (35,112,942) 18,290.1
8,124 (2,047) 8,1 - 556, Z Accounts payable $ 2.047 Accrued interest payable 378,620 177,711 Assessments payable 4,219,611 2,913,060 (2,763,804) 4,368,8 Deposits payable 8,237,926 17,712,740 (19,584,892) 6,365,7 Deferred compensation payable 5,905,967 1.085.076 - 6,991.0
Deferred compensation investments 5,905,967 1,085,076 - 6,991 ,a a
Liabilities:
21.896.7 Total liabilities $18.744.171. 11. (22.350.7 43) 18.290.1
113
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets used in operations accounted for in governme funds. General fixed assets include all fixed assets not accounted for in an enterp internal service, or trust and agency fund.
114
CITY OF WBAD
General Fixed Asset Account Group
Schedule of General Fixed Assets by Function
June 30, 1994
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1 Total $8.415 ZQ 37.418.63918.465.878-65.545,
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General Culture & Pub1 ic Pub1 ic Government Recreation Safety Works Total
Land $3,152,728 21,993,646 2,150,407 740,763 28,037,
3,019,460 10,410,066 13,996,610 - 27,426, Buildings I Improvements 790,218 1,885,192 372,316 23,471 3,071,
Furniture and equipment 1,452,844 1,223,086 1,946,545 481,233 5,103,
Construction in progress - 1.906.649 - - 1.906,
115
CITY OF CARLSBAD General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function
Year Ended June 30, 1994
General 1
Assets at Assets Func t ion July 1. 1993 Additions Deductions June 30.
General Fixed
General government $ 6,314,854 4,169,220 (2,068,824) 8,415,
Culture and recreation 37,336,550 260,245 (178,155) 37,418,
Public safety 18,132,259 912,253 (578,635) 18,465,
Public works 1,234,110 52,672 (41.315) 1,245,
Total $63.017.773 5.394.390!2.866.929) 65.545.
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CITY OF CARISBAD General Fixed Asset Account Group
Schedule of General Fixed Assets by Source
June 30, 1994
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As of June 30, 1986 $27,136,!
Net additions subsequent to June 30, 1986:
General fund 14,345, : Community Development Block Grants 2,759, L Federal grants 467, E
State grants 683, C
Street lighting 9,l Park deve 1 opment 6,010 ,t Public facilities 9,855,; I Redevelopment 4.277.5
Total investments in general fixed assets $65.545.;
117
118
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I ANNUAL DEBT SERVICE REOUIREMENTS
The following schedules present principal and interest debt service requirements fo
City's debt.
119
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 Anr
Year October 1 ADril 1 Interest October 1 Debt Sei
1994-95 $ 8,000 4,000 12,000 125,000 137, t
1995-96 4.000 - 4.000 125.000 129.G
Total $12.ooo 4.ooo 16.ooo 250.000 266,o
$1,500,000 - 1981 CARLSBAD PARKING AUTHORITY REVENUE BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Ann
Year August 1 February 1 Interest Februarv 1 Debt Ser
1994-95 $ 33,000 33,000 66,000 100,000 166,O 1995-96 29,000 29,000 58,000 100,000 158,O 1996-97 25 , 000 25,000 50,000 100,000 150,O
1997-98 21,000 21,000 42,000 125,000 167,0(
1998-99 16,000 16,000 32,000 125,000 157 , O(
1999-2000 11,000 11,000 22,000 125,000 147,0(
2000-01 6,000 6,000 12,000 150,000 162,0(
Total $141 .OOQ .141.ooo 282.ooo 825.ooo 1.107.0(
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CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
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I Total $7.940,440 7.53 2 ~ 770 15.473.210 15. 495 ! 000 30.968.2
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$15.495.000 - 1993 CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION TAX ALLOCATION BONDS
Fiscal Interest Due Interest Due Total Principal Due Total ann^ Year September 1 March 1 Interest SeDtember 1 Debt Sen
1994-95 $ 407,670 407 , 670 815,340 - 815 , 3L
1995-96 407 , 670 401 , 370 809 , 040 240 , 000 1,049,OL
1996-97 401,370 394 , 808 796 , 178 250 , 000 1,046 , li
1997-98 394 , 808 387 , 851 782 , 659 265 , 000 1 , 047 , 62
1998-99 387 , 851 380 , 501 768 , 352 280 , 000 1,048 , 32
1999-2000 380,501 372 , 889 753 , 390 290 , 000 1 , 043 , 3!
2000-01 372 , 889 364 , 882 737 , 771 305 , 000 1,042,7‘ 1 , 046 , 2: 2001-02 364 , 883 356,351 2002-03 356,351 347 , 426 703 , 777 340 , 000 1,043,7’ 2003-04 347 , 426 337 , 977 685 , 403 360 , 000 1,045,4( 2004-05 337 , 976 328 , 001 665 , 977 380 , 000 1 , 045 , 9’ 2005-06 328 , 001 317 , 633 645 , 634 395,000 1,040 , 6: 2006-07 317 , 633 306 , 607 624 , 240 420 , 000 1 , 044 , 21 2007-08 306 , 607 295 , 058 601 , 665 440 , 000 1 , 041 , 6( 2008-09 295 , 058 282,851 577 , 909 465 , 000 1,042,9( 2009-10 282 , 851 269 , 989 552 , 840 490 , 000 1,042,84 2010-1 1 269,989 256,470 526,459 515,000 1 ,041,4:
2011-12 256 , 470 242 , 295 498 , 765 540 , 000 1 , 038 , 7(
201 2- 13 242 , 295 227 , 332 469 , 627 570 , 000 1,039,6’
20 13- 14 227 , 332 211,583 438 , 915 600 , 000 1,038,9
2014-15 211,583 195 , 045 406 , 628 630 , 000 1,036,6’ 2015-16 195 , 045 177 , 589 372 , 634 665 , 000 1 , 037,6. 2016-17 177 , 589 159 , 213 336 , 802 700 , 000 1 , 036 , 81 2017-1 8 159 , 214 139 , 920 299 , 134 735 , 000 1,034 , 1
201 8-1 9 139 , 920 119 , 576 259 , 496 775 , 000 1,034,4 2019-20 119 , 576 98 , 183 217 , 759 815,000 1,032,7 2020-21 98 , 182 75 , 525 173 , 70’1 855 , 000 1,028,7 51 , 675 127 , 200 900 , 000 1,027,2 2021-22 75 , 525 2022-23 51 , 675 26 , 500 78 , 175 950 , 000 1,028 , 1 2023-24 26.500 - 26.500 1.000.000 1,026.5
721 , 234 325 , 000
121
CITY OF WBAD
Schedule of Annual Debt Service Requirements, (Continued)
$9.570.250 - COLLEGE BOULEVARD ASSESSMENT DISTRICT BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Anr Year Seutember 2 March 2 Interest Seutember 2 Debt Sei
1994-95 $ 287,956 275,394 563,350 335,000 898,3 897,1 1995-96 275,394 261,714 537,108 360,000
1996-97 261,714 246,699 508,413 390,000 898 , 4 1997-98 246,699 230 , 230 476,929 425,000 901 , 9 1998-99 230 , 230 212,485 442 , 715 455 , 000 897,7 1999-2000 212,485 192,932 405 , 417 495,000 900,4 2000-01 192,932 171,800 364 , 732 535,000 899,7 2001-02 171,800 148 , 600 320,400 580 , 000 900 , 41 2002-03 148,600 123 , 400 272,000 630,000 902 , 01 2003-04 123 , 400 96 , 200 219,600 680,000 899,61 2004-05 96 , 200 66 , 600 162 , 800 740 , 000 902 , 8r 2005-06 66,600 34,600 101,200 800,000 901 , 2r 2006-07 34.600 - 34,600 865.000 899.6(
Total $2.3 48.610 2.060 2 65 4 4.409.26 4 7.290.000 11.699.2t
$8.690.000 - 1988 HOSP GROE CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total Annu Year August 1 February 1 Interest Augus t 1 Debt Serv
1994-95 $ 290,730 281 , 143 571,873 295,000 866 , 87 1995-96 281 , 143 270,590 551,733 315,000 866 , 73 1996-97 270,590 259,205 529,795 330 , 000 859 , 79 1997-98 259 , 205 246,780 505,985 355 , 000 860 , 98. 1998-99 246,780 233,100 479 , 880 380 , 000 859,881 1999-2000 233,100 217,930 451 , 030 410,000 861,031 2000-01 217 , 930 201 , 400 419,330 435 , 000 854 , 331
854 , 001 2001-02 201 , 400 182 , 600 384,000 470,000
2002-03 182,600 162,200 344,800 510 , 000 854,801
2003-04 162,200 140,000 302,200 555 , 000 857 , 201
2004-05 140,000 116,000 256,000 600 , 000 856 , OOC
2005-06 116,000 90,400 206,400 640,000 846,40( 2006-07 90,400 62,600 153,000 695 , 000 848,001 2007-08 62 , 600 36,600 99,200 750,000 849,20( 2008-09 36.600 - 36.600 815.000 851.60C
Total $2,791 : 278 2.500.548- 7.555.ooo l!-Lmda
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I CITY OF CAlUSBAD
Schedule of Annual Debt Service Requirements, (Continued) I
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$14.370.000 - 1988 CARLSBAD MUNICIPAL WATm DISTRICT CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total Year November 1 Mav 1 Interest May 1 Debt 5
1994-95 $ 375,624 375 , 624 751 , 248 775 , 000 1,526 1995-96 350,049 350 , 049 700 , 098 825 , 000 1,525 1996-97 322,411 322,411 644 , 822 880 , 000 1,524 1997-98 292 , 491 292,491 584,982 940,000 1,524 1998-99 260 , 061 260 , 061 520,122 1,005,000 1,525 1999-2000 224,886 224 ? 886 449,772 1,075,000 1,524 2000-01 186,724 186 , 724 373,448 1,155,000 1,528 2001-02 145 , 144 145 , 144 290,288 1,235,000 1,525 2002-03 100,375 100 , 375 200,750 1 , 325,000 1,525 2003-04 52,012 52.012 104,024 1.425.000 1.529
Total $2.309.777 2.309.777 4.619.5.c4 10-6 40. OOQ &?a
$12,689,800 - ENCINA FINANCING JOIPif POWERS AUTHORITY INSTALJJENT PURCHASE AGREEMENT
Pr inc i pa 1 Fiscal Interest Due Interest Due Total Due Total Annua Year Auaus t 1 February 1 Interest August 1 Debt Servic
1994-95 $ 413,850 404 , 866 818,716 289,782 1 , 108,498 1995-96 404 , 866 395 , 142 800,008 308,722 1,108,730 1996-97 395 , 142 384,738 779 , 880 327,662 1 , 107 , 542 1997-98 384 , 738 373,586 758 , 324 348 , 496 1,106,820 1998-99 373 , 586 361 , 616 735 , 202 371,224 1 , 106,426 1999-2000 361,615 348,749 710 , 364 395,846 1 , 106,210 2000-01 348,749 334 , 979 683 , 728 420,468 1 , 104 , 196 200 1-02 334 , 979 320,167 655,146 448,878 1,104,024
2002-03 320,166 304,296 624,462 477,288 1,101,750 2003-04 304 , 297 287 ? 229 591 f c 26 509 , 486 1,101,012 2004-05 287 , 229 268 , 543 555, '772 543 , 578 1 , 099 , 350 2005-06 268 , 543 248 , 555 517,038 581,458 1,098,556 2006-07 248 , 555 227 , 201 475 , 'f 56 621 , 232 1,096,988
431 , 550 664 , 794 1,096,344 2007-08 227 , 201 204 , 349
2008-09 204,349 179,933 384 , 282 710 , 250 1,094,532
2009-10 179 , 933 153,891 333,824 757,600 1,091,424
2010-11 153 , 891 126 , 025 279 , 916 810,632 1,090,548
2011-12 126,025 96 , 273 222 , 298 865 , 558 1 , 087 , 856 2012-13 96 , 272 66,172 162,444 926,166 1,088,610 20 13- 14 66 , 172 34 , 101 100,273 986,774 1,087,047
2014-15 34,101 - 34.101 1.049,276 1,083,377
Total $5,534.259 5.120 > 41 1 10.654,670 1 2.415 ~ 170 23.069 ~ 8 40
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1 23
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$942,840 - CARLSBAD MUNICIPAL WATER DISTRICT
STATE LOAN FOR RECLAIMED WATER PROJECTS
Fiscal Interest Due Principal Due Total Annual Year November 30 November 30 Debt Service
1994-95 $ 20,411 42,483 62,894
1995-96 26,110 36,784 62,894
1996-97 25,044 37,850 62,894
1997-98 23,946 38,948 62,894
1998 -99 22,817 40,078 62,895
1999-2000 21,654 41,240 62,894
2000 -01 20,458 42,436 62,894
2001 -02 19,228 43,666 62,894
2002 -03 17,961 44,933 62,894
2003 -04 16,658 46,235 62,893
2004 -05 15,318 47,577 62,895
2005 -06 13,938 48,956 62,894
2007-08 11,057 51,837 62,894
2008-09 9,554 53,340 62,894
2009-10 8,007 54,887 62,894
2010 - 11 6,415 56,479 62,894
2011-12 4,777 58,117 62,894
2012-13 3,092 59,802 62,894
2013-14 1,019 46,817 47,836
Total $ 299,982 942,840 1,242,822
2006 -07 12,518 50,375 62,893
124
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CITY OF CARLSBAD
General Expenditures by Function
Last Ten Fiscal Years
FSCal General Public Cornm. Housing Library8 Comm. Capital Debt - Year Total"' - Gavt. silrety --- Devel. &Welfare them - SeMces Projects -
198485 $22,279,729 2,036,101 6,342,631 2,882,192 860.556 1,431,105 3,!33,817 4,634,327 519,OO
198586 36,206.852 2,sSS,901 7,105,704 4,416,726 1,076,999 1,603,807 6,308,301 12,315,807 719,601
198687 49,443,365 3,513,602 8,554,009 4,882,885 1,385,039 2,058,109 5,222070 22,967,869 859,782
1987-88 41,960,153 3.553212 9,290,872 5,144,681 1,705,094 2,362,239 6,451,298, 11,118,754 m,W
1988-89 55,745,009 4,312,897 11,069,305 5.637.655 1,614,015 2,460,874 7,438,348 19,879,063 3,332,854
1989-90 53,133,603 4,700,706 13,090,363 5,832346 1,808,058 3,710,970 9,238,961 11,104,390 3,647,809
199041 72999,324 5,371,331 15,230,438 7,915,308 2,081,382 3,127,508 8,600,552 26,665,164 4,007,641
1991-92 53,985,119 5,884,582 15,989,114 7323,586 2,385,384 3,090,540 9,697,220 5,639,098 3,974,795
1992-93 55,104,390 6,080,919 15,734,643 6,648,158 2,808,644 2,987,443 8,995,690 7,192,002 4,656,aSl
1993-94 f%Wl276 5,513,101 16,351,652 6,313,757 3,135,491 3,202,059 9.m.m 12933,2!3 SPIS.SSO
('1 includes General, Special Revenue, Debt Service and Capital Projects Funds.
GENERAL EXPENDITURES BY FUNCTION
1993-94
PUBUCSAFETY 26% SlB.4
GENERAL GOVERNMENT 9%
$53
MYUNITY DEVELOPMENT 10% SB.f
DEBTSERVICE BX 15.2
COMMUNITY SERVICES 1I% $90.0
CAPITALPROJECTS 21 S12.9 INQlWELFARE 5% UBRARYIARTS SK $5.1 s3.2
DOLLARS IN MILLIONS
Source: City of Carlsbad Comprehensive Annual Financial Reports
1 26
TOTAL EXPENDITURES
LAST TEN YEARS
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DOLLARS IN MILLIONS I $80
$60
$40
to
FISCAL YEAR
INCLUDES GENERAL, SPECIAL REVENUE, DEBT SERVICE AN0 CAPITAL PROJECT NNW
SPENDING ON CAPITAL PROJECTS
LAST TEN YEARS
$30
$25
$20
$IS
$10
' $5
$0
1985 1986 1987 1988 1989 1990 I991 1992 1993 1994
FISCAL YEAR
1 27
CITY OF CARLSBAD
General Revenues by Source
Last Ten Fiscal Years
Transient Fiscal Property sales OCCUPanCY Other Busines Taxes Taxes - Taxes License
1984-85 $31,272,744 5,243,124 5,726,373 1,041,947 2,084,724 428,54
1985-86 37,078,236 6,769,473 6,222,008 1.1 57,794 1,807,457 471,47
1986-87 45,626,319 8,516,463 6,487,371 1,729,998 '1,987,299 51 7,97
1987-88 42,944,962 8,882,813 7,128,461 1,995,447 4,205,570 61 6,27
Year Total'') Taxes -
1988-89 54,565,025 11,012,396 8,186.21 5 2,752,025 3,648,826 m,70
198iMO 57,970,453 12,677,817 9,342,077 3,630,662 4,114,856 781,71
1990-91 77,371.1 07 14,007,364 9,426,11 I 3,310,043 3,691,367 832,43
1991 -92 58,440,436 15,132,124 8,723,382 3,077,595 5,153,213 91 0,53
58.1 15,465 15,332,036 9.1 67,849 3,098,793 3,408,805 1,071,34
1993-94 62,239,740 13,920,220 10.840,115 3.1 53,084 4,124,250 1,093.82
1992-93
('1
(2)
Includes General, Special Revenue, Debt Service and Capital Projects Funds.
Includes interdepartmental services category added in 1991 -92 and miscellaneous
revenues.
GENERAL REVENUE
LAST TEN YEARS PROPERTY TAX AND SALES TAX REVENUl LAST TEN YEARS
DOLLARS IN MIUJONS DOLLARS W MILLIONS
$100 $18
$14
$1 0
SI
$6
$4
$20 $2
so
$80 $12
$60
$40
so FISCAL YEAR
FISCAL YEAR
Source; Gi of Carlsbad Comprehensive Annual Financial Reports
1 28
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Contributions
Other I ntergov- Charges for Fines and From Property
Licenses emmental Services Forfeits Interest Owners - Othei
3,042,110 2,060,542 8,541,600 345,750 2,638,536 119,'
3,525,394 2,924,892 9,814,416 289,055 2,8!7,01 I ,240J
3,830,93 1 5,608,869 12,678,062 366,597 2,944,741 958.(
3,521,242 2,506,690 8,770,067 435,649 3,422,839 175,593 1,283;
3,858.1 73 2,876,536 7,722,568 478,830 5,644,873 4,529,710 3.1 58,
4,058,540 3,267,054 10,728.326 51 1,890 6,002,986 402,292 2,442,:
3,550,013 5,405,074 10,701.989 51 5,746 5,737.51 3 16,515,962 3.677.4
3,307,980 6,087,138 7,759,224 31 2.984 4,826,292 446,813 2,703.1
3,355,533 7,107,385 5,725,597 231,877 4,866,361 380,389 4,369.4
3,590,927 8,019,308 9,181,814 231,454 3,996.1 27 344,851 3,743,: a
TRANSIENT OCCUPANCY TAX
LAST TEN YEARS CHARGES FOR SERVICES
LAST TEN YEARS
now8 IN Yuualu DOLLARS IN YlLUONI
$4 $14
$1 2
$10
$8
so
1
1
1
1
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$3
$2
$1 $4
$2
so so 1986 1080 1987 1988 1989 19SO 19B1 1912 19S3 lS94 1968198619871986198919901SS1 lSS219#1l#S4
FiSCAL YEAR FISCALYEAR
! Source: City of Carlsbad Comprehensive Annual Financial Reports
1 29
$100
$80 -
$60 -
$40 -
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I CITY OF CARLSBAD
Computation of Legal Debt Margin
June 30, 1994
25% of net assessed valuation'') $ 1,499,609,17
Debt limit (15% of net assessed valuation as adjusted) 224,941,37
Amount of debt applicable to debt limit:
Bonded debt(2) 23,860,OO
Certificates of participation 7,555,OO 1 Obligations under capital leases 705.39
Total amount of debt applicable to debt limit 32,120.39
Legal debt margin $ 192,820.98
Percent of debt limit 1 4:
('I Beginning January 1, 1987, a change in state law required the County Assessor to asses
all taxable property at 100% of full value as opposed to the prior practice of assessin
property at 25% of full value. To be consistent with previous years, the assessed valuatio
used for this computation is at 25% of full value. 8
(2) Total bonded debt:
Parking Authority $ 1,075,OO
College IBoulevard Assessment District 7,290,OO
Tax Allocation Bonds 15,495,OO
Total bonded debt $23,860,00
131
CITY OF CARLSEAD
Schedule of Direct and Overlapping Bonded Debt
June 30,1994
1993-94 Total Assessed Valuation: $6,092,956,316 (after deducting $1 55,042,466 redevelopment incremc
valuation)
Debt
% June 30,
Direct and Overlarmina Bonded Debt: Awlicable 1994
San Diego County Building Authorities 4621% $38,080,860
652,256 San Diego County Water Authority
Metropolitan Water District 0.758 4,909,945 Carlsbad Unified School District Authority 97.021 12,239,199
San Marcos Unified School District and Certificates of Participation 24.731 1,350,660 San Dieguito Union High School District and Certificates of Participation 7.458 976,625 Encinitas Union School District, Authority and Certificates of Participation 23.060 3,058,909
Mira Costa Community College District certificates of Participation 24.141 585,419 Other School Districts Various 85,809 Tri-City Hospital District 31.421 337,776 Palomar Pomerado Hospital District and Authority 0.688 67,045 Leucadia County Water District and I.D. #l 49.494 8t 1.581 11 7,813 Vallecitos Water District and I.D.'s #1, 2 & 6 6.483 - 10.866 63,189
Carlsbad Municipal Water District Certificates of Participation 100.000 10,640,000
Olivenhain Municipal Water District, I.D. #1 29.969 220,272
100.000 8,630,000 City of Carlsbad Authorities and Certificates of Participation
City of Carlsbad 191 5 Act Bonds 100.000 29,250,000
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT (')
4.796
Carisbad Unified School District Community Facilities District #1 100.000 12,020,000
$1 24,285,777 Less Vallecitos Water District and Improvement Districts 63,189
$124,222,588 TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT
(') Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and nc bonded capital lease obligations.
Ratios to Assessed Valuation:
Direct Debt ($8,630,000) ............................. 0.14%
Total Gross Debt .................................. 2.04%
Total Net Debt .................................... 2.04%
Share of Authorized and Unsold General Obliqation Bonds:
Metropolitan Water District ......................... $379,000
Carlsbad Municipal Water District, I.D. #3 .............. $200,000
State School Buildinsl Aid Repayable as of 6/30/94: $108,017
Carlsbad Municipal Water District, I.D. #1 ............... $98,944
Source: California Municipal Statistics, Inc.
132
0.2% -
0.1% - I
CITY OF CARLSBAD
Water Enterprise
Revenue Bond Coverage
Last Ten Fiscal Years
Net Revenue Debt Service Requirements Direct Available
Fiscal Gross Operating For Debt
Year Revenue'') Exoenses" Service PrinciDal Interest - Total Coveraq -
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 1,334,525 303,294 150,000 29,096 179,096 1.69
3.1 7 1988-89 1,760,102 1,195,822 564,280 157,000 21,211 178,211
1989-90 2,001,832 1,415,542 586,290 160,000 12'71 8 172,718 3.39
1990-91 ') 1 1,398,343 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 1 1,421,571 846,283 730,000 798,696 1,528,696 0.55
1993-94 15,188,913 12,286,557 2,902,356 775,000 751,248 1,526,248 1.90
(I)
(2)
(3)
Includes operating and non-operating revenues.
Total operating expenses including depreciation and amortization.
Effective January 1, 1990, Carlsbad Municipal Water District (CMWD) became a
subsidiary district of the Clty. Thus, beginning in fiscal year 199091, 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
134
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WATER ENTERPRISE GROSS REVENUE
VS. DIRECT OPERATING EXPENSES
LAST TEN YEARS
DOLLARS IN MILLIONS
$1 6
$14
$1 2
$1 0
$8
$6
$4
$2
$0 1985 1986 1987 1988 1989 I990 I991 1992 1993 1994
FISCAL YEAR
GROSS REVENUE N OPERATING EXPENSES
WATER ENTERPRISE
NET REVENUE AVAILABLE FOR DEBT SERVICE
LAST TEN YEARS
$3.0
$2.5
$2.0
$1.5
$1 .o
$0.5
$0.0
1985198619871988198919901991 199219931994
FISCAL YEAR
135
CITY OF CARLSBAD
Demographic Statistics
Last Ten Fiscal Years
city Population Populatio
Square Percent county Percent
Miles Population'') Ghanae . PoDulationP) of counq - Year -
1985 35.6 44,566 9.6 2,083,359 2.1
1986 36.0 48,872 9.7 2,166,169 2.3
1987 39.7 55,282 13.1 2,240,659 2.5
1988 39.7 58,888 6.5 2,327,657 2.5
1989 39.7 62,030 5.3 2,418,176 2.6
1990 42.2 63,451 2.3 2,509,914 2.5
1991 42.2 64,264 1.3 2,548,728 2.5
1 992 42.2 65,661 2.2 2,602,244 2.5
1993 42.2 67,172 2.3 2,648,597 2.5
1994 42.2 67,923 1.1 2,687,987 1.5
D
2000 (Estimate) 93,134@' 3,002,162 3.1
2005 (Estimate) 106,420" 3,27a,a35 3.2
(')'
(*)
@)
Source - State Department of Finance.
Source - County Data Base, San Diego County.
Population for Ci General Plan and County area - San Diego Association of
Governments Series Vlll growth forecast.
POPULATION
LAST TEN YEARS
IN THOUSANDS
1985 1986 4987 1988 1989 1990 1991 1992 1993 1994
. FISCALYEAR
WWLATION AS OF JANUARY 3 PER STATE DEPARTMENT OF FINANCE
136
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ClTy OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Unsecured ProDerty Less Prooertv Exemptic Fiscal Year Secured Property
1984-85 $2,487,497,173 75,231,054 14,605,675
1985-86 2,893,268,927 77,524,350 18,616,217
1986-87 3,456,419,183 80,781,420 19,248,842
21,859,608
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
1987-88 3,937,879,614 98,879,688
1992-93 5,948,358,026 242,255,869 31,586,277
1993-94 5,a58,9a7,695 270.1 2031 9 36,i 51,898
NET TAXABLE VALUE
LAST TEN YEARS
DOWRS IN SlLuONS
7
-’ 6
5
4
3
2
1
0
1985198619871988198919901991199219931994
FISCAL YEAR
Source: County of San Diego Office of the Auditor and Controller
138
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Total Homeowner’s Net Assessed Percentage I Assessed Valuation Exemptions Valuation Chartae
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 14.1
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
6,159,027,618 92,131,120 6,066,896,498 2.7
6,092,956,316 94,519,630 5,998,436,686 (1 .I)
139
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Building License Fiscal Permit Percent Estimated License Percent
Chanae Year Revenue Chanae Valuation Revenue
1984-85 $1,055,738 (1 .2) 21 3,403,469 428,546 21.8
1985-86 1,397,129 32.3 ' 263,548,719 471,470 10.0
1986-87 1,230,100 (12.0) 245,661,491 51 7,972 9.9
1 987-88 671,779 (45.4) 127,831,606 61 6,278 19.0
1988-89 674,814 .5 . 11 1,898,109 696,706 13.1
1989-90 1,029,750 52.6 169,746,343 791,715 13.6
1990-91 857.71 7 (1 6.7) 163,340,462 832,432 5.1
1991 -92 21 9,445 (74.4) 42,351,906 91 0,532 9.4
1992-93 234,063 6.7 49,809,414 1,071,342 17.7
1993-94 367,031 56.8 71,057,243 1,093,827 2.1
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
DOLLARS IN MILLIONS
$300
$250
$200
$150
$100
$50
$0
I
1985198619871988198919901991 199219931994
FISCAL YEAR
INCLUDES GENERAL SPEW1 REVENUE, DEBT SERVICE AND CAPITAL PROJECT FUNDS
Source: Ci of Carlsbad Comprehensive Annual Financial Reports
140
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CIN OF CARLSBAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Total Total Current % of Levy Year Current Levy Collections Collected
1984-85 $5,565,653 5,170,614 92.9
1985-86 6,742.71 3 6,263,242 92.9
1986-87 8,677,224 7,488,152 92.7
1988-89 10,928,048 10,237,929 93.7
1987-88 9,368,469 8,733,089 93.2
1989-90 12,600,253 1 1,816,888 93.8
1990-91 13,931,230 12,986,628 93.2
1991 -92 14,932,937 13,795,525 92.4
1992-93 13,990,844 12,776,232 91.3
1993-94 12,373,782 1 1,318,017 91.5
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS -
DOLLARS IN MILLIONS
$1 6
$14
$12
$10
$8
$6
$4
$2
1985 1986 I987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
AMOUNT COLLECTED
E Source: County of San Diego Office of the Auditor ma Controller
141
CITY OF CARLSBAD
Special Assessment Billings and Collections
College Boulevard Assessment District
Last Eight Fiscal Years
Fiscal Special Assessment Special Assessments
Year Billinas Collected
Prior to 1987 N/A N/A
1987 $1,000,362 1,000,362
1988 988,116 987,689
1989 984,780 985,207
1990 985,680 985,670
1991 986,080 760,329
1992 940,780 799,231
1 993 508,080 420,476
1994 836,787 685,602
Note: There were no special assessment billings for the College Boulevard Assessment
District prior to the fiscal year ended June 30, 1987. The current delinquency
balance is $606,089.
Source: City of Carlsbad Comprehensive Annual Financial Reports
1 42
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CITY OF CARLSBAD
Principal Employers
1993-1 994
Firm ProducVService EmPlovee
Manufacturinq:
Callaway Golf Golf Equipment 1,20
The Upper Deck Entertainment Cards 67
Puritan-Bennett Corporation Medical Equipment 601
Republic Tool & Manufacturing Co. Tools 40r
Cobra Golf Golf Equipment 301
Taylor Made Golf Go., Inc. Golf Equipment 251
Hughes Technology Center Integrated Circuits 251
Ashworth, Inc. Golf Apparel 251
Smith & Nephew DonJoy Inc. Orthopedic Braces 341
Compton’s New Media, Inc. Software 22c
Block Medical, Inc. Medical Supplies 20c
Beckman Instruments Medical Diagnostic Reagent 20t
Dyna Corporation Medical Products & Printing Co. 1 7( International Totalizer Systems Export Off Track Betting Systems 16:
Eaton-Leonard Corporation Vending Machines 15t
Sherwood IMS Ear Thermometers 15C
Melles Griot Laser Products Gas Lasers 150
Calcitek, Inc. Dental Implants i 5a
Non-Manufacturing:
Plaza Camino Real Shopping Mall (5 major Dept. Stores) 3,OOG
La Costa Hotel & Spa Hotel & Health Spa 950
Carlsbad Unified School District Education 61 0
Car Country Carlsbad Car Dealerships 500
Farmer’s Insurance - Regional Insurance 420
San Diego Gas & Electric Utility Company 270
lsis Pharmaceuticals Research and Development 185
Price Costco Grocer/Whoiesale/Retail 1 60
Best Western Andersen’s inn Hotel/Restaurant 150
Carlsbad By The Sea Retirement/Residential Care Facility 150
City of Carlsbad Municipal Government 477
Source: City of Carlsbad Chamber of Commerce
143
CITY OF CARLSBAD
Principal Taxpayers
1993-94
Percentage of total Net
Assessed
Taxpaver Tvpe of Business Valuation Valuation'')
San Diego Gas & Electric Company Power Generation $315,083,333 5.3 La Costa Hotel & Spa Corporation Hotel & Health Spa 206,379,368 3.4
Aviara Land Associates Limited Land Developer 67,728,052 1.1
Fieldstone/La Costa Associates Land Developer 174,391,826 2.9 Hughes Aircraft Company Manufacturer 97,847,626 1.6
Aviara Resort Associates Limited Land Developer 44,775,200 0.7
Lyon/Copley Carlsbad Associates Land Developer 41,365,205 0.7
Upland Industries Corporation Land Developer 39,958,075 0.7 Kaiza Poinsettia Corporation Land Developer 31,613,572 0.5 Plaza Camino Real Shopping Center 29,354,373 - 0.5 -
$ 1,048,496,630 17.5%
(') Net assessed valuation for 1993-94 - $5,998,436,686
Source: County of San Diego office of the Auditor and Controller
144
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I Number of Firefighters & Officers 73
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CITY OF CARLSBAD
Miscellaneous Statistical Information
1993-94
Date of Incorporation July 16, 1952
Type of City General Law Form of Government Council/Manager
Area 42.1 9 sq. miles
Population 67,923
Number of Street Lights 4,600
Miles of Streets 284.45
Fire Protection:
Number of Stations 6
Police Protection:
Number sf Stations t
Number of Sworn Police Officers 72
Municipal Water IDistrict:
Number of Customers 17,768
Average Daily Consumption
Miles of Lines and Mains
13.04 million gallons
325
Miles of Sewers 113
Recreation and Culture:
Number of Parks (Improved and Unimproved)
Area of Parks Number of Pools 1
Number of Libraries 2
Number of Volumes 21 4,620
36
416.88 acres
1 45
146
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Financial Statements and Supplemental Data
Year Ended June 30, 1994
(With Independent Auditor's Report Thereon)
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6 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Financial Statements and Supplemental Data
Year Ended June 38, 1994
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TABLE OF CONTENTS
a - F
Independent Auditors' Report
Financial Statements: e Combined Balance Sheet - All Governmental Fund Types
and Account Group
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Notes to Combined Financial Statements
Supplemental Da,ta:
6
Combining Balance Sheet - Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds
Schedule of Insurance Coverage
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CERTIFIED PUBLIC ACCOUN
0 %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)
1100 MAIN STREET,
IRVINE, CALIFORN
CONW
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The Board of Directors Parking Authority of the City of Carlsbad Carlsbad, California
Independent Auditors' Report 0
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
1994, as listed in the accompanying table of contents. These component unit fine 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. r
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 fin&
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, 1994, and the results of its operations for the year then ended in confox
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion of the component unit fina statements taken as a whole. The combining financial statements and schedule listed i accompanying table of contents are presented for purposes of additional analysis and ar a required part of the component unit financial statements of the Parking Authority o City of Carlsbad. Such information has been subjected to the auditing procedures applj the audit of the component unit financial statements and, in our opinion, is fairly stat
all material respects in relation to the component unit financial statements taken as a w
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August 10, 1994
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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
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combined Balance Sheet - All Governmental Fund Types and Account Group
June 30, 1994 *
Gove rnmien t a 1 Account Fund Twes GrouD e General Debt Long-term Tc (Memo r a General Service Debt
Assets and Other Debits
- Ib Cash and investments (note 2) $3,000 372 7 584 Net investment in direct financing leases (note 3) - 693,944 - Accrued interest receivable - 8 , 472 - Due from other funds (note 5) - 2 , 032 -
Amount to be provided for retirement of general long-term debt -
381,056 4 Amount available in debt service funds - -
693,944 -
Total assets and other debits $3.ooo 1- 1.075.000 24
- -
Liabilities and Fund Balances
Liabilities:
Due to other funds (note 5) $- 2 , 032 - Deferred revenue - 693,944 - Revenue bonds payable (note 4) - - 1,075,000 z
Total liabilities - 695,976 1,075,000 --J 1
9
Fund balances : - 381 7 056 Reserved for debt service -
Unreserved - undesignated 3,000 - - -
Total fund balances 3.000 - 381.056 -
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Total liabilities and fund
ba 1 ance s $3.ooo 1.077.032 1.075.000 2,
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See accompanying notes to combined financial statements.
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e 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, 1994
Totals General Debt Service (Memorandum e Revenues : Lease payments $- 46,955 46,955 Interest income - 32.287 32,287
Tot a 1 revenues L 79.242 79.242
0
Expenditures:
200,000 200,000
Interest - 93,200 93,200 Administrative 2,239 - 2.239
Total expenditures 2.239 293,200 295,439
Excess (deficiency) of revenues over (under) expenditures (2.239) (213.958) (216,197
Principal retirement -
Other financing sources (uses): a
Operating transfers in 2,239 18,108 20,347 Operating transfers out - (20.347 ) (20.347
Total other financing sources (uses) 2,239 (2.239) -
Excess (deficiency) of revenues and other financing sourcesi over (under) expenditures and other
financing uses - (216,197) (216,197
Fund balances at beginning of year 3.000 597.253 600.253
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Fund balances at end of year $3.ooo 381.056 384.056
See accompanying notes to combined financial statements.
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
Year Ended June 30, 1994
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(1) Organization and Summary of Significant Accclunting Policies
The Parking Authority of the City of Carlsbad (the Authority) was created pursi
the Parking Law of 1949 and was authorized by the City Council on April 19, 19
the purpose of providing and expanding public parking facilities for the C Carlsbad (the City). A five-member commission appointed by the City Council g
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 acco the Authority have been included within the scope of the general purpose fii
statements of the City because the City Council exercises oversight responsibilii
the operations of the Authority. Only the accounts of the Authority are in
herein; therefore, these financial statements do not purport to represent the fii position or results of operations of the City of Carlsbad.
The accounting policies of the Authority conform to generally accepted accc
principles as applicable to governmental units. The following is a summary of th significant policies:
la) Basis of Presentation
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The accounts of the Authority are organized on the basis of funds and an a group, each of which is considered tal be a separate accounting entitj operations of each fund and account group are accounted for by provi separate set of self-balancing accounts that comprise its assets, liabilitie balance, revenues, and expenditures. The various funds and the account are summarized by type in the financial statements. Fund types and the a group used by the Authority are as follows:
GOVERNMENTAL FUND TYPES
Governmental funds are used to account for the Authority's expendable fii
resources and related liabilities. The measurement focus is upon determ of changes in financial position. The following are the Authority's govern
General Fund
The general fund is the general operating fund of the Authority. It is I account for all financial resources except those required to be accounted
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a another fund.
Debt Service Funds
Debt service funds are used to account for the accumulation of resources f
payrnent of, general long-term debt principal, interest and related costs.
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
/1) Organization and Summarv of Simificant Accounting Policies. (Continued)
(a) Basis of Presentation, (Continued)
GENERAL LONG-TERM DEBT ACCOUNT GROUP 4
This account group is used to establish accounting control and accountabi the Authority's general long-term debt. It is used to account for all lon obligations of the Authority.
Measurement Focus and Basis for Accounting lb)
Governmental fund types are accounted for on a "spending" measuremeni Accordingly, only current assets and current liabilities generally are inch their balance sheets, and the reported fund balance provides an indica available, spendable resources. Operating statements for government: types report increases (revenues) anti decreases (expenditures) in a7 spendable resources.
Governmental fund types use the modified accrual basis of accounting. Rt are recognized when susceptible to accrual (i.e., both measurable and ava Available means collectible within the (current period or soon enough the to be used to pay liabilities of the current period. Revenues that are i include interest income.
Governmental fund expenditures are recognized when the liability is in except for principal and interest on lsng-term debt, which is recognize due,
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[c) Budgets
The Authority does not adopt an annual1 budget; thus, no budgetary comr are presented.
0 fd) Investments
Investments are stated at cost or amortized cost which approximates value.
(e) Total Columns e
Total columns on the combined statements are captioned "Totals (Memo Only)" to indicate that they are presented only to facilitate financial a
Data in these columns do not present financial position, results of operat
changes in fund balance in conformity with generally accepted acc principles. Such data is not comptarable to a consolidation. In
eliminations have not been made in the aggregation of this data. a
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.- PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
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(2) Cash and Investments
Cash and investments held by the Authority at June 30, 1994 consisted of the foll
Depos i t s $ 3,000 e
Investments - 3172.584
&,75.584
The Authority's investment policy and state statutes authorize the Authority to
in obligations of the U.S. Treasury, its agencies and instrumentalities, comn
paper rated A-1 by Standard and Poor's Corporation or P-1 by Moody's Comn
Paper, baiker's acceptances with a maximurn maturity of 270 days, repurcha reverse repurchase agreements, certificates of deposit with national and state li or chartered banks or federal or state savings and loan associations, money marl
Diego County investment pool and the State Treasurer's investment pool.
Under the California Government Code, a financial institution is required to deposits made by state or local governmental units by pledging securities held form of an undivided collateral pool. The market value of the pledged securities
collateral pool must equal at least 110% of the total amount deposited by the agencies.
As of June 30, 1994, all of the Authority's deposits were classified as category bank balance equals the carrying amount.
Classification of Investment by Credit Risk
As defined in Governmental Accounting Standards Board Statement No. 3, inves
in securities are categorized in the following manner:
Category 1 -
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mutual fuids whose portfolios consist of one 01' more of the foregoing investmen
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0 Investments that are insured or registered, which are held Authority or its agent in the Authority's name,
Category 2 - Uninsured and unregistered investments, for which the securit held by the counterparty's trust department or agent Authority's name.
Uninsured and unregistered investments, for which the securit held by the counterparty or by its trust department or agent, in the Authority's name.
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Category 3 -
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
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(2) Cash and Investments. (Continued)
Cat eporv Carrying Ma a Twe of Investment 1 2 3 Amount - V
U.S. Treasury notes and bills $ - 109,705 - 109,705 110 Government agency obligations - 151.406 : 151,406 15(1
L261.111.A 261,111 260
0 Investment in mutual funds - Pacific Horizons 111,473 &I
Total investments $372.584u
/3) Lease Ameements 0
Leases have been executed between the Authority and the City under which th agreed to make annual payments of $138,000 and $174,000 for the lease of a I: facility and its subsequent expansion, respectively. The leases have been recor
the Authority as direct financing leases.
Lease payments are due quarterly and terminate on the date of retirement related revenue bonds. Under the terms of the lease agreements and thc resolutions, Debt Service Funds in excess of the next interest and principal pa! may be used as follows: First, to maintain a reserve of $68,000 and $l! respectively, for the 1969 and the 1981 Bonds. Next, to pay the General Fund f expenses of the Authority and to maintain the fund balance at $3,000, and 1 credits to the City for rentals due under the leases. Due to the excess monies 1969 Bond Service Fund during the fiscal year ending June 30, 1994, no lease pa: were required from the City under the parking facility lease. A lease paym
$46,955 was required during the fiscal year ending June 30, 1994 from the Citj the expansion lease to cover debt service payiments during the year for the 198
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(4) Revenue Bonds Payable
The following is a summary of changes in revenue bonds payable for the year 0 June30, 1994:
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e PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
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/4) Revenue Bonds Payable. (Continued)
Series 1969 Series 1981 Tot
Revenue bonds payable 0
June 30, 1993 $350, ooo 925,000 1,275
Bonds retired 100.000 100,000 20(
Revenue bonds payab 1 e j
June 30, 1994 itiz&uu 825.ooo LJLZ @
Revenue bonds payable at June 30, 1994 were comprised of the following ind issues:
1969 Parking Revenue Bonds:
1969 Carlsbad Parking Authority Revenue Bonds, remaining principal due in amoi $125,000 on October 1 of each year through 1995, interest payable on October April 1 at 6.4% per annum. The bonds are subject to call in whole or in part option of the Authority at prices ranging from 100.5% to 105% of the principal i of the bonds.
198 1 Parking Revenue Bonds:
1981 Carlsbad Parking Authority Revenue Boinds, remaining principal due in a ranging from $100,000 to $150,000 on February 1 of each year through 2001, i
payable on August 1 and February 1 at 8.0% per annum. Bonds maturing on o
February 1, 1991 are subject to call in whole or in part at the option of the Au
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 folk - Series 1969 Series 1981 To
1995 $13'7 , 000 166 , 000 303 1996 129 , 000 158,000 287 1997 - 150 , 000 150 1998 - 167 , 000 167 e 1999 - 157 , 000 157 Thereafter -- - 309,000 309
26S, 000 1,107,000 1,373
a interest 16.000 282.000 298
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Less amounts representing
Total revenue bonds payable $LE!LaD 825.ooo 1.075
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
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(4) Revenue Bonds Payable. KO n t in uedl
At June 30, 1994, the Authority was in compliance with all significant debt coven
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(51 Due To and From Other Funds
The following table shows amounts due from other funds within the Authority tc funds within the Authority at June 30, 1994:
Inter f und Receivable Pavab 1 e Inter f und e
Bond Service Funds: Series 1969 $1,893 - Series 1981 139 - 0
Reserve Funds: Series 1969 - 1,893
Series 1981 - 139
Totals %2.032 2.032 0
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Combining Balance Sheet -
Debt Service Funds
June 30, 1994 e
Bond Service Funds Reserve Funds
Assets Series 1969 Series 1981 Series 1969 Series 1981- e
Investments $147,591 5,730 67,842 151,421
“et investment in direct financing lease 30,827 663,117 - -
Accrued interest receivable 1,689 14 2,051 4,718
Due from other funds 1,893 139 - - --
Total assets $182.ooo 669.ooo 69.893 156.139L e
Liabilities and Fund Balances
Liabilities:
Due to other funds $- - 1,893 139
Deferred revenue 30.827 663,117 -
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Total liabilities 30,827 663,117 1,893 139
Fund balances - reserved for debt service 151.173 5,883 68,000 156,000 -
Total liabilities and fund balances $182.ooo 669.ooo 69.893 JsLmL
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Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Debt Service Funds
Year Ended June 30, 1994 e
Bond Service Funds Reserve Funds a Series 1969 Series 1981 Series 1969 Series 1981
Revenues : 46,955 - - Lease payments $-
Interest income 12.484 1,695 5,624 12.484
a Total revenues 12,484 48.650 5,624 12,484
EKpendi t ures :
Principal retirement 1oo.OOo loo,OOo - -
Interest 19,200 74,000 - -
Total expenditures 119.200 174.000 - - a
Excess (deficiency) of revenues over
(under) expenditures 1106.716) ( 125,350) 5.624 12.484 1
Other financing sources (uses):
Operating transfers in 5,625 12,483 - -
Operating transfers out (3631 (1.876) 15.624) (12.484)
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15,624) 1 12.484) Total other financing sources (uses) 5.262 10,607
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses (101,454) (114,743) - -
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Fund balances at beginning of year 252,627 120,626 68.000 156.000
Ehnd balances at end of year $151.1735.883 68.ooo 156.ooo e
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Schedule of Insurance Coverage
Year Ended June 30, 1994 *
Insurance coverage maintained by the City of Carlsbad with the Authority lis additional insured at June 30, 1994 includes:
e Tvrse of Coverage Amount o f Coverage Term
All risk including rental income $500,000,000 05/15/94 to 091 Mobile equipment 5,000,000 05/15/94 to 05/1 Honesty Blanket Bond 1,500,000 04/16/94 to 04/1 Valuable papers 25,000,000 05/15/94 to 05/1 Service interruption 5,000,000 05/15/94 to OW1 e
Effective January 1, 1986, the Authority has not been covered under a liability ins
policy but has been included under the City of Carlsbad's self-insurance program. e
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CARLSBAD REDEVELOPMENT AGENCY
Component Unit Financial Statements
Year Ended June 30, 1994
(With Independent Auditors' Report)
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a CARLSBAD REDEVELOPMENT AGENCY
Component Unit Financial St at e ments
Year Ended June 30, 1994
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TABLE OF CONTENTS e
Financial Section:
Independent Auditors ' Report
Component Unit Financial Statements:
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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 - Special Revenue and Debt Service Funds
Notes to Component Unit Financial Statements
Auditors' Opinion on Compliance with Audit Guidelines for California Redevelopment Agencies
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CERTIFIED PUBLIC ACCOUNl
1100 MAIN STREET, '
IRVINE, CALlFORNl 0 %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) A
CONRAD
The Board of Commissioners
Carlsbad Redevelopment Agency Carlsbad, California
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INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the Carlsbad Redevelo Agency, a component unit of the City of Carlsbad, as of and for the year ended Ju 1994, as listed in the table of contents. These component unit financial statements a
responsibility of the management of the Carlsbad Redevelopment Agency. Our respom is to express an opinion on these component unit financial statements based on our audi
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 component unit financial statements are free of material misstatemer audit includes examining, on a test basis, evidence supporting the amounts and disclow the component unit financial statements. An audit also includes assessing the acco principles used and significant estimates made by management, as well as evaluatii overall component unit financial statement presentation. We believe that our audit pr a reasonable basis for our opinion.
In our opinion, the component unit financial statements referred to above present fai all material respects, the financial position of the Carlsbad Redevelopment Agency a 30, 1994, and the results of operations for the year then ended, in conformity with gel accepted accounting principles.
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September 23, 1994
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-1- a MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
a WBAD REDEVELOPMEFIT AGElVCY
Combined Balance Sheet -
All Governmental Fund Types and Account Groups
June 30, 1994 e
Governmental Fund lbes Account Grow T
Special Debt Capital Long-term Wmra e Revenue Service Projects Debt 1994
Assets and Other Debits
Cash and investments (note 3) $1,402 , 574 2,005,865 2 , 702 , 775 - 6 , 111 , 214 - - 102 , 387 Loan receivable 102 , 387 -
Taxes receivable 5 , 527 22 , 109 - - 27,636
Due from City of Carlsbad 1 , 199,592 - - - 1,199,592
Amount available in debt service fund - - - 2 , 045 , 683 2,045,683
Amount to be provided for retirement
of advances - - - 8,369,823 8,369,823
Amount to be provided for retirement
13,449,317 13.449.317 of bonds - - -
Total assets and other debits $2.731.173 2.045.683 2,726. 443 23.864.823 31.368.122
0 Interest receivable 21,093 17 , 709 23 , 668 - 62,47(1
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Liabilities and Fund Balances
Liabilities: e
715 - 33,048 - 33,763 - 20,114 - 30,014
Advances from the City of Carlsbad - 8 , 369,823 8 , 369 , 822
Bonds payable (note 5) - - - 15.495 .OOO 15.495.00(
Total liabilities 10,620 - 53.162 23.864.823 23,928,602
Accounts payable $
Accrued expenses 9,905
(note 5) - -
Fund balances:
Reserved for loan receivable (note 7) 102,387 - - - 102,38;
Reserved for debt service (note 7) - 2,045,683 - - 2,045,682
Reserved for low and moderate income
housing (note 7) 1,817,758 - - - 1,817,75E
Reserved for encumbrances (note 7) - - 42,116 - 42, llt
Unreserved:
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Designated for approved capital
projects (note 7) 800,408 - 2,071,685 - 2,872,092
Undesignated (note 7) - - 559.480 - 559.48(
Total fund balances 2,720,553 2.045.683 2.673.281 - 7,439.51:
Total liabilities and fund
balances $2.731.173 2.045.683 2.726.443 23.864.823 31.368.12; e
See accompanying notes to component unit fimncial statements.
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CARLSBAD REDEVELQPMENT AGENCY
Combined Statement of Revenues, Expenditures
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and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 1994 e
Totals
Spec ia 1 Debt Capital (Memorandum On1
Revenue Service Proiects 1994 f9
Property tax increment $ 322,067 1,288,269 - 1,610,336 1,652
Intergovernmental - - 30 , 800 30,800 29
Charges for services - - 37 y 426 37,426
Revenues :
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Interest 58,762 61,391 113,471 233,624 356
Miscellaneous 162 - 26,572 26,734 1s
Total revenues 380.991 1.349.660 208.269 1,938.920 w e
Fxpenditures:
General government - - 608,069 608,069 75:
Housing and welfare 101 y 494 - - 101,494 81
Capital outlay - - 2,301,117 2,301,117 231
Debt service: e Principal - 7,385 - 7,385 29(
Interest and fiscal charges - 907,790 - 907,790 1,325
Payment to refunded bond escrow
agent (note 5) - 1,709,777 - 1,709,777
Debt issuance costs - 489,113 - 489 y 113
State mandated payment (note 8) - 92.472 - 92,472 25:
Total expenditures 101.494 3.206.537 2.909.186 6,217.217 2.94
Excess (deficiency) of
revenues over (under)
expenditures 279,497 J 1.856.877) (2,700.917) 14,278,297) _(ss
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Other financing sources (uses):
Operating transfers in - - 3,129,717 3,129,717 46
Operating transfers out - (2,580,717) (549,000) (3,129,717) (46
Proceeds of advances from
the City of Carlsbad - 474,777 - 474,777 46 a Payment to refunded bond escrow agent - (10,964,372) - (10,964,372)
Proceeds of refunding bonds - 10,964,372 - 10,964,372
4,220,728 Proceeds of bonds, net of discount - 4,220,728 -
Administrative fee received from
bond refunding - - - - 3
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(uses) - 2.114.788 2.580.717 4,695,505 2
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and e other financing uses 279,497 257,911 (120,200) 417,208 (38
Fund balances at beginning of year 2.441 .OS6 1.787.772 2,793,481 7,022,309 7.40
Fund balances at end of year $2.720.553 2.045.683 2.673-281 7.439.517 m
e See accompanying notes to component unit financial statements.
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CARLSBAD REDEVELBPMERT AGENCY
Combined Statement of Revenues, Expenditures
Special Revenue and Debt Service Funds
Year Ended June 30, 1994
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and Cbanges in Fund Balances - Budget and Actual -
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Suecial Revenue Debt Servic
Actual on Variance- Budgetary
Favorab 1 e Basis 6
Budget Actual Wnfavorablel Budget (Note 21 1
Revenues :
Property tax increment $ 320,000 322,067 2,067 1,280,000 1 , 288,269
Interest 75,000 58,762 (16,238) 60,000 61,391
Miscellaneous - 162 162 - - B
Total revenues 395.ooo 380.991 (14.009) 1.340.000 1.349.660
Expenditures: Housing and welfare 124,290 101,494 22 , 796 - -
Debt service:
0) Principal - - - 235,000 7,385
Interest and fiscal charges - - - 859,550 433 , 013
Payment to refunded bond
escrow agent - - - 1,709,777 1,709,777
Debt issuance costs - - - 489.113 489,113
State mandated payment (note 8) - - - 92.500 92.472
Total expenditures 124.290 101.494 22.796 3.385.940 2,731.760
Excess (deficiency) of
revenues over (under)
expenditures 270.710 279,497 8.787 (2,045,940) j1.382.100)
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Other financing sources (uses):
Operating transfers out - - - (2,580,717) (2,580,717)
Payment to refunded bond
escrow agent - - - (10,964,372) (10,964,372)
Proceeds of refunding bonds - - - 10,964,372 10,964.372
Proceeds of bonds, net of - - - 4.220.728 4.220.728
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Total other financing
sources (uses) I I - 1,640,011 1,640,011
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures and
other financing uses 270,710 279,497 8,787 (405,929) 257,911
@ Fund balances at beginning of year 2,441.056 2.441,056 - 1.787.772 1.787.772
Fund balances at end of year s2.711.7662.720.553 8.7871.381.8432.045.683
See accompanying notes to component unit financial statements.
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cD CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
Year Ended June 30, 1994
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(1) Organization and Summary of Significant Accounting Policies
The Carlsbad Redevelopment Agency (the Agency) was established in July 197
the adoption of Ordinance No. 1191 by the Carlsbad City Council pursuant California Community Redevelopment Law, now codified as Part 1, Division 24, State of California Health and Safety Code. The Agency has the broad autho acquire, rehabilitate, develop, administer and sell or lease property. The Agency subject to federal or state income taxes.
The principal objectives of the Agency are to eliminate blighted influences wit "Village Area" of the City of Carlsbad, stimulate and attract private inves generate added employment through increased specialty goods and services and 1 the City's sales tax revenue.
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The Agency is an integral part of the reporting entity of the City of Carlsba City). The funds and account group of the Agency have been included within the
of the general purpose financial statements of the City because the City Council governing board over the operations of the Agency. Only the funds and accounl of the Agency are included herein; therefore, these financial statements do not F to represent the financial position or results of operations of the City of Ca
The accounting policies of the Agency conform to generally accepted accc principles as applicable to governmental units. The following is a summary of th( significant policies:
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i) California.
i) (a) Basis of Presentation
The accounts of the Agency are organized on the basis of funds and an a
group, each of which is considered to be a separate accounting entit3 operations of each fund and account group are accounted for by provi separate set of self-balancing accounts that comprise its assets, liabilitie
balance, revenues, and expenditures. The various funds and account groi
summarized by type in the financial statements. The fund types and at
group used by the Agency are as follows:
GOVERNMENTAL FUND TYPES
Governmental funds are used to account for the Agency's expendable fir
resources and related liabilities. The measurement focus is upon determi of changes in financial position. The following are the Agency's governi fund types:
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(R CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
(D
/1) Orpanization and Summary of Simificant Accounting Policies. (Continued)
(B (a) Basis of Presentation, (Continued)
Special Revenue Funds
Special revenue funds are used to account for revenues derived specific sources (other than major capital projects) that are restricl law or administrative regulation to expenditures for specified purpose
Debt Service Funds
Debt service funds are used to account for the accumulation of res
for, and payment of general long-term debt principal, interest and r
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cB costs.
Capital Projects Funds
Capital projects funds are used to account for financial resources used for the acquisition or construction of major capital facilities.
GENERAL LONG-TERM DEBT ACCOUNT GROUP D
This account group is used to establish accounting control and accountabilj
the Agency's general long-term debt. This account group is used to accoi all long-term obligations of the Agency.
Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measurement
Accordingly, only current assets and current liabilities are included or balance sheets, and the reported fund balance provides an indication of ava
spendable resources. Operating statements for governmental fund types increases (revenues) and decreases (expenditures) in available spendable res
The modified accrual basis of accounting is utilized by the governmenta types. Revenues are recognized when susceptible to accrual, i.e.,
measurable and available. Available means collectible within the current 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 tax
interest income.
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cD CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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/1) Organization and Summary of Significant Accounting Policies, (Continued)
[B (b) Measurement Focus and Basis for Accounting. (Continued)
Real property taxes are levied on October 15 against owners of record at 1 1. The taxes are due in two installments, on November 1 and February
become delinquent after December 10 and April 10, respectively. Tax attach annually as of 12:Ol a.m. on the first day of March in the fiscal ye: which the taxes are levied. Under the provisions of NCGA Interpretat
property tax revenue is recognized in the fiscal year for which the taxer been levied, provided it is collected within 60 days of the end of the fiscal y
Governmental fund expenditures are recognized when the liability is inc except for principal and interest on long-term debt which is recognized whe
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(c) Encumbrances 0)
Encumbrance accounting, under which purchase orders, contracts and
commitments for the expenditure of monies are recorded in order to reserv portion of the applicable appropriation, is employed as an extension of 1 budgetary control in the governmental funds. Encumbrances outstandj
year-end do not constitute expenditures or liabilities, but are repor. 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 C
Agency's equity in the pooled cash is included in the financial statements a and investments. Interest earned as a result of the pooling is allocated
Agency based on average monthly cash balances.
Carlsbad. Pooled investments are stated at cost or amortized cost< 6
(e) Compensated Absences b
Vacation pay is payable to employees at the time used or upon terminat employment. The cost of accumulated vacation expected to be paid in th 12 months is recorded as a fund liability; currently no amounts are expectec paid after 12 months.
(f) Total Columns e
Total columns on the accompanying combined financial statements are cap "Totals (Memorandum Only)" to indicate that they are presented 01 facilitate financial analysis. Data in these columns do not present fir position, results of operations, or changes in fund balance in conformit!
generally accepted accounting principles. Such data is not comparablc
consolidation. Interfund eliminations have not been made in the aggregat this data.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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J2) Budgetary Data
The budget for the Agency is established by the City of Carlsbad. The City Man; authorized to make transfers of appropriated amounts within a fund for up to $1 Revisions that alter the total appropriations of any fund must be approved by th
Council with the exception of budget adjustments which involve offsetting re
appropriation for a specific purpose where the appropriation is offset by unbu revenue which is designated for said specific purpose. Quarterly budget revie! conducted each year and any major changes to the adopted budget are approved City Council at that time.
Budgets are adopted on the modified accrual basis, except that encumbranc treated as budgeted expenditures in the year purchases are committed. Expenc may not exceed budgeted appropriations at the departmental level. Unencur appropriations lapse at year-end. Annual budgets are adopted for the special r(
and debt service funds.
The following schedule is a reconciliation of the budgetary and GAAP Debt I fund balances:
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and expenditures. The City Manager is authorized to increase or decrez
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Debt Service
$2 , 045 , 683 Fund balance - budgetary basis Debt service on advances from
City of Carlsbad - not budgeted (474,777) d Proceeds of advances 474.777
Fund balance - GAAP basis $2.045.683
(3) Cash and Investments m
The Agency participates in the pooled cash fund of the City.
Authority for Deposits and Investments
The Agency's investment policy and state statutes authorize the Agency to in e demand and time deposits, obligations of the U.S. Treasury, its agencir instrumentalities, commercial paper rated A-1 by Standard and Poor's Corpora P-1 by Moody's Commercial Paper record, banker's acceptances with a ma maturity of 270 days, repurchase and reverse repurchase agreements, certific
deposit with national and state licensed or chartered banks or federal or state I 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. Depoz 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 leas 50 percent in excess of the total amount of all public funds on deposit.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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(3) Cash and Investments. (Continued)
Classification of Investments by Credit Risk:
As defined in Governmental Accounting Standards Board Statement No.
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Agency's investments in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are held b
the Agency or its agent in the Agency's name.
Category 2 - Uninsured and unregistered investments, for which th( securities are held by the counterparty's trust department o agent in the Agency's name.
b Category 3 - Uninsured and unregistered investments, for which th securities are held by the counterparty or by its trus department or agent, but not in the Agency's name.
At June 30, 1994, the Agency had the following investments which a categorizable by credit risk:
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0) Carrying
Investment Amount
Investment in mutual funds $ 717,983
Investment in state pool (LAIF) 2,757 , 774
0) Investment in City's pooled cash fund 2,635.457
Total investments $6.111.214
The carrying amount equals the market value.
m (4) Pension Plan
The Agency's employees are included in the City's pension plan which is admin
by the California Public Employees Retirement System (PERS). PERS is ar multiple-employer public employee retirement system that acts as a c
investment and administrative agent for participating public entities within thc of California.
All full-time employees are eligible to participate as members of the PERS. B vest after an employee has been a member of the plan for five years. Employ
benefits are determined based on age at retirement, the length of membership and the amount of earnings based on the highest twelve consecutive months a
The PERS also provides death and disability benefits. These benefit provisions other requirements are established by state statute.
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eligible to retire after age 50 with 5 years of credited service. Annual reti
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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54) Pension Plan, (Continued)
0 Employees are required to make contributions equaling 7% of gross pay. This is p
the City for the benefit of the employees in lieu of salary. The City is also requi contribute the remaining amounts necessary to fund the benefits for its members,
the actuarial basis recommended by the PERS actuaries and actuarial consultar
adopted by the PERS Board of Administration.
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 1 Financial Report of the City of Carlsbad.
0 Additional disclosures required by Governmental Accounting Standards
0 (5) Long-term Debt
The following is a summary of changes in long-term debt for the year ended Ju
1994:
Principal Pr incipa Q Balance at Additional Balance a July 1. 1993 Obligations Deletions June 30. 1
Advances f Tom the City of Car 1 sbad $ 7,924,846 474 , 777 29 , 800 8,369,82 e Bonds payable 11.185.000 15.495.000 11,185,000 15. 495. oa
Total $19.109.84615.969.777 11.2 14 ~ 800 23.864.82
Since activation of the Redevelopment Agency in July 1976, the City has advanc Agency monies for approved expenditures. Advances from the City bear interes. to the City's interest rate received on pooled investments. There is no stated mi date.
On August 15, 1993, the Agency issued $15,495,000 in tax allocation bonds v average interest rate of 5.3% to finance redevelopment activities within the ' Redevelopment Project Area and to advance refund $1 1,185,000 of outstandin
series tax allocation bonds with an average interest rate of 7.3%. The bond:
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purchased at a discount of $309,900,
Proceeds of $10,964,372 plus an additional $1,709,777 of 1988 series monies we1 to purchase U.S. government securities. Those securities were deposited irrevocable trust with an escrow agent to provide for all future debt service pa!
on the 1988 series bonds. As a result, the 1988 series bonds are considered defeased and the liability for those bonds has been removed from the 2
long-term debt account group.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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15) Long-term Debt. (Continued)
Payments to the escrow agent from resources provided by the refunding issuc e
been classified as other financing uses - payment to refunded bond escrow Payments to the escrow agent from other resources have been classified accompanying financial statements as debt service expenditures - payment to re bond escrow agent. As a result of the advance refunding, the Agency reduc future cash payments by almost $1,500,000 and obtained an economic gain (diff between the present values of the debt service payments on the old and new dr
approximately $3 64,000.
Debt service requirements to maturity for the bonds, including sinking fund pay
are as follows:
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0 1995 $ 815,340
1996 1,049,040 1997 1,046,178
1998 1,047,659
1999 1,048,352
2000-2004 5,221,575 e 2005-2009 5,215,425 20 10-20 14 5,201,606 2015-2019 5,179,694 2020-2024 5,143.341
30,968,210
Bonds payable $15.495.000
a Less amounts representing interest (15.473.210)
At June 30, 1994, the Agency was in compliance with all significant debt covenar
16) Obligations Under Operating: Leases 0
In June 1988, the Agency entered into an agreement to lease a parking lot 01 Street from a private party. The lease requires monthly rental payments for years. Total annual rent payments are $46,517 for fiscal year ending June 3(
with annual cost of living adjustments required and market value adjustments r(
payments 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 on C Village Drive from a private party. The lease requires annual rental payments f years. Total annual payments are $43,500 for fiscal year ending June 30, 199: Agency has a purchase option on the property which it intends to exercise at the the fifth year.
The following is a schedule by year of future minimum rental payments require( operating leases at June 30, 1994:
every 5 years after fiscal year ending June 30, 1988. The future minimum 0
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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1995 $ 90,017
1996 49,308
1997 52,266
1998 55,402 e 1999 58,726 Thereafter 715.333
Total minimum lease payments $1.021.052
0 17) Fund Balances
Reserves for the loan receivable and low and moderate income housing are estal to show that certain assets are already committed for other purposes and a available for discretionary expenditures.
Reserve for debt service represents resources legally restricted to the payrn general long-term debt principal and interest maturing in future years.
Reserve for encumbrances represents commitments related to unperformed cox for services and undelivered goods.
0 Unreserved-designated for approval capital projects represents the fund b expected to be used for the acquisition or construction of major capital facilities
Unreserved-undesignated balances represent the fund balance remaining reduction for reserved and designated fund balances.
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(8) State Mandated Payment
The Agency was required by the State Department of Finance, pursuant to a dated October 1, 1993, to shift a portion of tax increment money to the Educ;
Revenue Augmentation Fund. The Agency funded its $92,472 payment from I
0 tax increment funds.
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CERTIFIED PUBLIC ACCOUN
0 1 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)
1100 MAIN STREET,
IRVINE, CALIFORh
CONRAD
0
The Board of Commissioners
Carlsbad Redevelopment Agency
0 Carlsbad, California
Auditors' ODinion On ComDliance With
Audit Guidelines for California Redevelopment Agencies
6 We have audited the combined financial statements of the Carlsbad Redevelopment A (a component unit of the City of Carlsbad, California) as of and for the year ended JI
1994, and have issued our report thereon dated September 23, 1994. We conducted ou in accordance with generally accepted auditing standards and Government A Standards. Those standards require that we plan and perform the audit to obtain reas assurance about whether the financial statements are free of material misstatement.
Compliance with laws and regulations applicable to the Carlsbad Redevelopment Agl the responsibility of the Carlsbad Redevelopment Agency's management. As 1 obtaining reasonable assurance about whether the financial statements are free of m misstatement, we performed tests of the Carlsbad Redevelopment Agency's compliant provisions of laws and regulations contained in the Guidelines For Compliance AUI California RedeveloDment Agencies issued by the State Controller's Office, Divi Local Government Fiscal Affairs.
The results of our tests indicated that, with respect to the items tested, the CI Redevelopment Agency complied, in all material respects, with the provisions referre the preceding paragraph. With respect to items not tested, nothihg came to OUT at. that caused us to believe that the Carlsbad Redevelopment Agency had not compliec material respects, with those provisions.
This report is intended for the information of the Carlsbad Redevelopment Agency, a State Controller's Office. However, this report is a matter of public record i distribution is not limited.
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September 23, 1994 e
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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
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CITY OF CARLSBAD
Carlsbad, California
Single Audit Report on e Federal Assistance Programs
For the fiscal year ended June 30, 1994
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a CITY OF CARLSBAD
Single Audit Report on Federal Assistance Programs
For the fiscal year ended June 30, 1994 0
TABLE OF CONTENTS a
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 Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditors' Report on Internal Control
Structure Used in Administering Federal
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e Financial Assistance Programs
Independent Auditors' Report on Compliance Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards a
Independent Auditors' Report on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Programs
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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Findings and Recommendations
Status of Prior Audit Findings
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CERTIFIED PUBLIC ACCOUh
1100 MAIN STREET
IRVINE, CALIFORP e ~SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (71 41
CONRAD
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The Honorable Members of City Council
City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE e
We have audited the general purpose financial statements of the City of Car California, as of and for the year ended June 30, 1994, and have issued our report th dated September 23, 1994. These general purpose financial statements are the responsi of the management of the City of Carlsbad, California. Our responsibility is to exprc 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 State the provisions of Office of Management and Budget Circular A-128, "Audits of Stat Local Governments". Those standards and OMB Circular A-128 require that we pla perform the audit to obtain reasonable assurance about whether the general pu financial statements are free of material misstatement. An audit includes examining, test basis, evidence supporting the amounts and disclosures in the general purpose fin:
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 pu financial statements of the City of Carlsbad, California, taken as a whole. accompanying schedule of federal financial assistance is presented for purposes of addi, 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 i audit of the general purpose financial statements and, in our opinion, is fairly preseni all material respects in relation to the general purpose financial statements taken as a \
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September 23, 1994
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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
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CITY OF CARLSBAD
Schedule of Federal Financial Assistance
For the fiscal year ended June 30, 1994
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Federal
Domestic Program Federal 1
Assistance Identification Assistance AI
Number Number Received Ill EXJ
0 U.S. Department of Housina and
Urban Develoment
Direct Assistance:
Section 8 Certificate Program 14.856 CA16E077006 $2,127,570 2,
Section 8 Housing Voucher Program 14.855 CA16V007002 563,165
Community Development Block Grant 14.218 B93MC060563 1.185.918 2,
Sub t o t a1 3,876,653 5,1
/016
e /006
e U.S. Department of Health and
Human Services
Pass-through from the County of
San Diego:
Senior Nutrition Program 13.635 30718 70,151
a
U.S. Department of Anriculture
Pass-through from the County of
San Diego:
Senior Nutrition Program 10.558 30718 28,116
e U.S. Department of Education
Pass-through from the California
State Library:
40-2422
40-2576
40-2646
Library Services 84.034 T2-9 18 82,316 0
U,S. Federal EIIIerKenV Management
Agency WEMA)
Pass-through from the California
Office of Emergency Services: 0
FEMA Assistance 83.516 979-073-11194 65.609 -
45 z Total federal financial assistance $4 5 122.8
e
(1) Based on actual cash receipts from July 1, 1993 through June 30, 1994.
* Includes $1,199,592 for a land purchase to be financed from the proceeds of a Section 108 lo
See accompanying independent auditors' report.
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CERTIFIED PUBLIC ACCOUN
1100 MAIN STREET,
IRVINE, CALlFORh %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (71 4)
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 FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE 0 WITH GOVERNMENT AUDITING STANDARDS
We have audited the general purpose financial statements of the City of Cai California, as of and for the year ended June 30, 1994, and have issued our report tl dated September 23, 1994.
We have conducted our audit in accordance with generally accepted auditing star Government Auditing Standards, issued by the Comptroller General of the United Stat€
Local Governments". Those standards and OMB Circular A-128 require that we pl; perform the audit to obtain reasonable assurance about whether the general p financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of th of Carlsbad, California, for the year ended June 30, 1994, we considered its internal ( structure in order to determine our auditing procedures for the purpose of expressi opinion on the general purpose financial statements and not to provide assurance internal control structure.
The management of the City of Carlsbad, California, is responsible for establishir maintaining an internal control structure. In fulfilling this responsibility, estimat
judgments by management are required to assess the expected benefits and related c(
internal control structure policies and procedures. The objectives of an internal c structure are to provide management wi-rh reasonable, but not absolute, assurancf assets are safeguarded against loss from unauthorized use or disposition, anc transactions are executed in accordance with management's authorization and re( properly to permit the preparation of financial statements in accordance with ger
accepted accounting principles. Because of inherent limitations in any internal c structure, errors or irregularities may nevertheless occur and not be detected. projection of any evaluation of the structure to future periods is subject to the risl procedures may become inadequate because of changes in conditions, or tha 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 stri policies and procedures in the following categories: revenuedrec purchases/disbursements and payroll/personnel.
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the provisions of Office of Management and Budget Circular A-128, "Audits of Sta
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MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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The Honorable Members of City Council City of Carlsbad, California Page Two
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For all of the control categories listed above, we obtained an understanding of the de relevant policies and procedures and whether they have been placed in operation, a
assessed control risk.
Our consideration of the internal control structure would not necessarily disclose all n in the internal control structure that might be material weaknesses under sta
established by the American Institute of Certified Public Accountants. A material we
is a reportable condition in which the design or operation of one or more of the ii control structure elements does not reduce to a relatively low level the risk that er irregularities in amounts that would be material in relation to the general purpose fii statements being audited may occur and not be detected within a timely period by em1 in the normal course of performing their assigned functions. We noted no matters in7 the internal control structure and its operation that we consider to be material weal as defined above.
However, we noted certain matters involving the internal control structure and its op'
letter dated September 23, 1994.
This report is intended for the information of City management and the agencie provided federal financial assistance to the City. This restriction is not intended to lii distribution of this report, which is a matter of public record.
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that we have reported to the management of the City of Carlsbad, California, in a se
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CERTIFIED PUBLIC ACCOUN
1100 MAIN STREET,
IRVINE, CALlFORh e %SSOCLATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (71 41
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
e We have audited the general purpose financial statements of the City of Cai California, for the year ended June 30, 1994 and have issued our report thereon
September 23, 1994. We have also audited the City's compliance with require
applicable to major federal financial assistance programs and have issued our report t
dated September 23,1994.
We conducted our audits in accordance with generally accepted auditing star Government Auditing Standards, issued by the Comptroller General of the United Stat€ Office of Management and Budget (OMB) Circular A-128, "Audits of State and Governments". Those standards and OMB Circular A-128 require that we plan and pl the audit to obtain reasonable assurance about whether the general purpose fir statements are free of material misstatement and about whether the City of Ca California, complied with laws and regulations, noncompliance with which would be m; to a major federal financial assistance program.
In planning and performing our audits for the year ended June 30, 1994, we consider4 internal control structure of the City of Carlsbad, California, in order to determii
auditing procedures for the purpose of expressing our opinions on the general p financial statements of the City of Carlsbad, California, and on the compliance of th of Carlsbad, California with requirements applicable to major programs and to report I internal control structure in accordance with OMB Circular A-128. This report add our consideration of internal control structure policies and procedures releva compliance with requirements applicable to federal financial assistance programs. WI
addressed internal control structure policies and procedures relevant to ow audit ( general purpose financial statements in a separate report dated September 23, 1994.
The management of the City of Carlsbad, California, is responsible for establishir
maintaining an internal control structure. In fulfilling this responsibility, estimate
judgments by management are required to assess the expected benefits and related cc internal control structure policies and procedures. The objectives of an internal CI structure are to provide management with reasonable, but not absolute, assurancf assets are safeguarded against loss from unauthorized use or disposition, that transa
are executed in accordance with management's authorization and recorded propel permit the preparation of general purpose financial statements in accordance with gen accepted accounting principles, and that federal financial assistance programs are ma in compliance with applicable laws and regulations. Because of inherent limit
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MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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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 noncomplianc
nevertheless occur and not be detected. Also, projection of any evaluation of the sti to future periods is subject to the risk that procedures may become inadequate beci changes in conditions or that the effectiveness of the design and operation of policj procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control sti policies and procedures used in administering federal financial assistance programs
following categories.
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Accounting Controls
o Purchases/Disbursements
0 Payroll/Personnel
0 Revenues/Receipts e
Administrative Controls
General Requirements:
0 Political Activity e 0 Davis-Bacon Act
0 Civil Rights
0 Cash Management
0
0 Federal Financial Reports
0 Allowable CostdCost Principles e 0 Drug-Free Workplace Act
0 Administrative Requirements
Relocation Assistance and Real Property Management
Specific Requirements:
0 Types of Services e 0 Eligibility
0
0 Reporting
0 Release of Funds
0 Environmental Review
0 Program Income
0 Claims for Reimbursements
Matching, Level of Effort, or Earmarking
e 0 Monitoring Subrecipients
For all of the internal control structure categories listed above, we obtair understanding of the design of relevant policies and procedures and whether they ha7
placed in operation, and we assessed control risk. e
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The Honorable Members of City Council
City of Carlsbad, California Page Three
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During the year ended June 30, 1994, the City of Carlsbad, California, expended 96 I
of its total federal financial assistance under major federal financial assistance progra
We noted a certain matter involving the internal control structure and its operation t consider to be a reportable condition under standards established by the American Ir of Certified Public Accountants. Reportable conditions involve matters coming
attention relating to significant deficiencies in the design or operation of the i control structure that, in our judgment, could adversely affect the City of C; California's ability to administer federal financial assistance programs in accordant
The reportable condition noted is found in the Findings and Recommendations section report.
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 le risk that noncompliance with laws and regulations that would be material to a
financial assistance program may occur and not be detected within a timely pel employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures I administering federal financial assistance would not necessarily disclose all matters internal control structure that might be reportable conditions and, accordingly, wo necessarily disclose all reportable conditions that are also considered to be n weaknesses as defined above. However, we believe that the reportable condition de in the findings and recommendations section is not a material weakness.
We also noted other matters involving the internal control structure and its operatic we have reported to the management of the City of Carlsbad, California, in a separatc
dated September 23, 1994.
This report is intended for the information of the City management, and the agenci provided federal financial assistance to the City. This restriction is not intended to li distribution of this report, which is a matter of public record.
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0 September 23, 1994
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CERTIFIED PUBLIC ACCOUN
1100 MAIN STREET,
IRVINE, CALIFORb 0 %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (71 41
CONRAD
The Honorable Members of City Council a City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE 0 WITH GOVERNMENT AUDITING STANDARDS
We have audited the general purpose financial statements of the City of Ca: California, as of and for the year ended June 30, 1994, and have issued our report t: dated September 23, 1994.
We conducted OUT audit in accordance with generally accepted auditing star Government Auditing Standards, issued by the Comptroller General of the United State the provisions of Office of Management and Budget Circular A-128, "Audits of Sta Local Governments". Those standards and OMB Circular A-128 require that we pl; perform the audit to obtain reasonable assurance about whether the general p financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City of Cai California, is the responsibility of the management of the City of Carlsbad, Californ part of obtaining reasonable assurance about whether the general purpose fir: statements are free of material misstatement, we performed tests of the City's comp with certain provisions of laws, regulations, contracts, and grants. However, OUT obj
was not to provide an opinion on overall compliance with such provisions. According do not express such an opinion.
The results of our tests indicate that for the items tested, the City of Carlsbad, Calii complied, in all material respects, with the provisions referred to in the prel paragraph. With respect to items not tested, nothing came to our attention that causec believe that the City had not complied, in all material respects, with those provision! results of our audit procedures disclosed no immaterial instances of noncompliance wi requirements referred to above.
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 limi distribution of this report, which is a matter of public record.
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September 23, 1994 8
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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
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CERTIFIED PUBLIC ACCOUh
1100 MAN STREET
IRVINE, CALI FORI e ~SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714
CONRAD
The Honorable Members of City Council
City of Carlsbad, California e
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH SPECIFIC REOUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
We have audited the general purpose financial statements of City of Carlsbad, Califon of and for the year ended June 30, 1994, and have issued our report thereon dated Septt 23, 1994.
We have also audited compliance by the City of Carlsbad, California, with the require governing types of services allowed or unallowed; eligibility; matching, level of effo earmarking; reporting; release of funds; environmental review; program income; moni subrecipients; and claims for reimbursements that are applicable to each of its major fr financial assistance programs, which are identified in the accompanying schedule of fr financial assistance, for the year ended June 30, 1994. The management of the C. Carlsbad, California, is responsible for the City's compliance with those requirements responsibility is to express an opinion on compliance with those requirements based c audit.
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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 re that we plan and perform the audit to obtain reasonable assurance about whether ma noncompliance with the requirements referred to above occurred. An audit inc examining, on a test basis, evidence about the City's compliance with those requiren We believe that our audit provides a reasonable basis for our opinion.
The results of our audit procedures did not disclose any immaterial instance 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, le1 effort, or earmarking; reporting; release of funds; environmental review; program inc monitoring subrecipients; and claims for reimbursements that are applicable to each ( major federal financial assistance programs for the year ended June 30, 1994.
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This report is intended for the information of City management and agencies that Dro 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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September 23, 1994 -9-
MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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CERTIFIED PUBLIC ACCOUb
1100 MAIN STREET
IRVINE, CALIFORP a %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (71 41
CONRAD
t The Honorable Members of City Council
City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH GENERAL REOUIREMENTS APPLICABLE TO
FEDERAL FINANCIAL ASSISTANCE PROGRAMS
We have audited the general purpose financial statements of City of Carlsbad, Californ of and for the year ended June 30, 1994, and have issued our report thereon dated Septe
We have applied procedures to test whether the City of Carlsbad, California, has corn
with the following requirements applicable to its federal financial assistance programs
major programs of which are identified in the schedule of federal financial assistanct the year ended June 30, 1994: political activity, Davis-Bacon Act, civil rights, management, relocation assistance and real property management, federal financial rei 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 Governments". Our procedures were substantially less in scope than an audit, the obje of which is the expression of an opinion on the City's compliance with the require1 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 mat
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 1
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 pro1 federal financial assistance to the City. This restriction is not intended to limit distribution of this report, which is a matter of public record.
a 23, 1994.
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September 23, 1994 a
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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
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CERTIFIED PUBLIC ACCOUh
0 %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714:
1100 MAIN STREET
IRVINE, CALIFORP
CONRAD
e The Honorable Members of City Council City of Carlsbad, California
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, Californ of and for the year ended June 30, 1994, and have issued our report thereon dated Septe e 23, 1994,
In connection with our audit of the 1994 general purpose financial statements of the Cj 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 sell transactions applicable to certain nonmajor federal financial assistance programs fo
year ended June 30, 1994.
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 i
expression of an opinion on the City's compliance with these requirements. According11 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.
City of Carlsbad, California, had not complied, in all material respects, with
requirements. Also, the results of our procedures did not disclose any immaterial insti 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 distribution of this report, which is a matter of public record.
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respect to items not tested, nothing came to OUT attention that caused us to believe tha e
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September 23, 1994 e
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CEmlFlED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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CITY OF CARLSBAD a
Findings and Recommendations
For the fiscal year ended June 30,1994
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HUD Section 8 Utilitv Allowances
During our single audit testwork over the Section 8 Housing Assistance Payments Pro we noted seven instances where the building type noted on the Inspection Checklist Wi used to calculate the utility allowance. The caseworker computing the utility allowanc
occasionally use a building type allowance that is not consistent with the Inspt Checklist. Not using the proper building type may result in a miscalculation of the I
allowance, resulting in a Housing Assistance Payment being made that is not in accor
with HUD requirements.
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Recommendation
We recommend that efforts be made to properly ensure that the utility allowar
computed based upon the correct building type. Any discrepancies as to the ty structure involved need to be investigated and the resolution properly documented.
Citv ResDonse Regarding Corrective Actions Planned
"The Housing Authority agrees with the Auditor's recommendation. During the single seven instances were noted where the building type identified on the Inspection Che was inconsistent with the building type documented by the owner on the Lease Agree Staff have been instructed to ensure that the building type identified by the owner a inspector is consistent. When inconsistencies occur, staff have been instructc investigate and properly document the resolution of those discrepancies. Additional] inspector and staff have been educated to properly identify buildings by type per regulations."
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CITY OF CARLSBAD
Status of Prior Audit Findings
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The prior year single audit findings have been adequately resolved.
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CITY OF CAWBAD
PUBLIC IMPROVEMENT CORPORATION
Financial Statements and Supplemental Data
Year Ended June 30, 1994
(With Independent Auditors' Report Thereon)
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0 CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Financial Statements and Supplemental Data
Year Ended June 30, 1994
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TABLE OF CONTENTS
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Independent Auditors' Report
Financial Statements:
Combined Balance Sheet - Governmental Fund Type
and Account Group
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds
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0 Notes to Combined Financial Statements
Supplemental Data:
Combining Balance Sheet - Debt Service Funds
Combining Statement of Revenues, Expenditures and e Changes in Fund Balances - Debt Service Funds
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CERTIFIED PUBLIC ACCOUE
1100 MAIN STREE1
IRVINE, CALIFOR a ~SSOCLZTES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (71 4
CONRAD
The Board of Directors City of Carlsbad Public Improvement Corporation 0 Carlsbad, California
Independent Auditors' Report
We have audited the accompanying component unit financial statements of the ( Carlsbad Public Improvement Corporation (the Corporation) as of and for the yea1 June 30, 1994, as listed in the accompanying table of contents. These cornponei financial statements are the responsibility of the Corporation's management responsibility is to express an opinion on these component unit financial statements bz 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 financial statements are free of material misstatement. An audit ii examining, on a test basis, evidence supporting the amounts and disclosures in the fi
statements. An audit also includes assessing the accounting principles used and sigr
estimates made by management, as well as evaluating the overall financial sta
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 fa
all material respects, the financial position of the City of Carlsbad Public Improi Corporation as of June 30, 1994, and the results of its operations for the year then e: conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the component unit fii
statements taken as a whole. The combining financial statements listed in the accom1 table of contents are presented for purposes of additional analysis and are not a r( part of the component unit financial statements of the City of Carlsbad Public Improy Corporation. Such information has been subjected to the auditing procedures applied audit of the component unit financial statements and, in our opinion, is fairly statec material respects in relation to the component unit financial statements taken as a wh
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August 10, 1994
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MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
a CITY OF CARLSBAD PUBLIC IMPROVEMFJT CORPORATION
Combined Balance Sheet - Governmental Fund Type and Account Group
June 30, 1994 a
Government a 1 Account
Fund Twe Grouv d General Tc Debt Long-term (Men Service Debt C
Assets
I
6,( Net investment in direct financing lease (note 3) 6,654,771 - Interest receivable 29,972 - Amount available in debt service funds - 900,229 t
Amount to be provided for retirement of
- 0 Cash and investments held by trustee (note 2) $ 872,882
e certificates of participation - 6,654,771 6.(
Total assets $7.557.625 7.555.oooL
Liabi 1 it ies and Fund Balance
Liabilities: a
6,( Certificates of participation payable (note 4) - 7.555.000 7.1
Total liabilities 6.654.771 7,555.000 14.:
Deferred revenue $6,654,771 -
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Fund balances: Reserved for arbitrage (note 5) $ 2,625 -
Reserved for debt service (notes 4 and 5) 900.229 - - t
Total fund balances 902,854 -
Total liabilities and fund balances $7.557.625 7.555.oooL
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See accompanying notes to combined financial statements.
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e CITY OF CARLSBAD PUBLIC IMPRO~ CORPORATION
Combined Statement of Revenues, Expenditures
Debt Service Funds
Year Ended June 30, 1994
and Changes in Fund Balances -
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Revenues : Lease payments $792 9 Interest on investments 74 <
e Total revenues 866 x
Expenditures: Pr inc i pa 1 275,
Interest 590, e Administrative 4,
Total expenditures 869,
over (under) expenditures (3.
Operating transfers in 76 9 Operating transfers out (76.
Total other financing sources (uses) -
Excess (deficiency) of revenues and other financing sources over
(under) expenditures and other
Excess (deficiency) of revenues
m Other financing sources (uses):
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financing uses (3 f
Fund balances at beginning of year 906, a
Fund balances at end of year $992.
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See accompanying notes to combined financial statements.
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b CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
Year Ended June 30, 1994
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Organization and Summary of Simificant Accounting Policies (1)
The City of Carlsbad Public Improvement Corporation (the Corporation) was or$
on June 1, 1988 under the Nonprofit Public Benefit Corporation law for the puq financing and constructing certain improvements on the parcel of property kn 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 Ca
California (the City). The accounts of the Corporation have been included wit
scope of the general purpose financial statements of the City because the City (
exercises oversight responsibility over the operations of the Corporation. 01 accounts of the Corporation are included herein; therefore, these financial statc do not purport to represent the financial position or results of operations of the 1
Carlsbad.
The accounting policies of the Corporation conform to generally accepted acct principles as applicable to governmental units. The following is a summary of th
significant policies:
(a) Basis of Presentation
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The accounts of the Corporation are organized on the basis of funds account group, each of which is considered to be a separate accounting The operations of each fund and account group are accounted for by prov separate set of self-balancing accounts that comprise its assets, liabilitie balance, revenues, and expenditures. The various funds and the account are summarized by type in the financial statements. The fund types a account group used by the Corporation are as follows:
GOVERNMENTAL FUND TYPE
Governmental funds are used to account for the Corporation's expe financial resources and related liabilities. The measurement focus i' determination of changes in financial position. The following is the Corpor governmental fund type:
Debt Service Funds
Debt service funds are used to account for the accumulation of resources fc 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 accountabil the Corporation's general long-term debt. It is used to account for all long obligations of the Corporation. e
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0 CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
(Continued)
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/1) Organization and Summary o f Significant Account inv Policies. KO ntinue#)
(b) Measurement Focus and Basis of Accounting
Governmental fund types are accounted for on a "spending" measuremeni
Accordingly, only current assets and current liabilities are generally incl\
their balance sheets, and the reported fund balance provides an indica
available, spendable resources. Operating statements for governmenta
types report increases (revenues) and decreases (expenditures) in avi
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9 spendable resources.
Governmental fund types use the modified accrual basis of accounting. Re are recognized when susceptible to accrual (i.e., both measurable and ava Available means collectible within the current period or soon enough the to be used to pay liabilities of the current period. Revenues that are a
Governmental fund expenditures are recognized when the liability is in except for principal and interest on long-term debt, which is recognize
due.
a include interest income.
e (4 Budgets
The Corporation does not adopt an annual budget, therefore, no bud comparisons are presented.
(d) Investments
Investments are stated at cost or amortized cost which approximates 1 value.
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(e) Total Columns
Total columns on the combined statements are captioned "Totals (Memor Only)" to indicate that they are presented only to facilitate financial ar
Data in these columns do not present financial position, results of operatic changes in fund balances in conformity with generally accepted accc principles. Such data is not comparable to a consolidation. In1 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)
(2) Cash and Investments
Aut hori tv for Investments
The Trust Agreement by and among the Bank of America, as successor trust(
Corporation and the City of Carlsbad, dated June 1, 1988, authorizes the tm
invest in Federal Treasury Securities, Federal Agency Securities, interest4
demand or time deposits, obligations of U.S. corporations having assets in exc $500,000,000 and carrying one of the three highest ratings by Moody's and Standa Poor's Corporation, repurchase agreements, money market funds, commercial
rated A-1 by Standard and Poor's Corporation and P-1 by Moody's Commercial
with original maturities of not more than 180 days, bankers acceptance5 maturities of not more than 270 days, and tax-exempt obligations rate in one three highest ratings by Moody's and Standard and Poor's Corporation.
Classification of Investment by Credit Risk
As defined in Governmental Accounting Standards Board Statement No. 3, invesi in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are held 1 Corporation or its agent in the Corporation's name.
Uninsured and unregistered investments, for which the securiti held by the counterparty's trust department or agent i Corporation's name.
Uninsured and unregistered investments, for which the securiti held by the counterparty or by its trust department or agent, b in the Corporation's name.
As of June 30, 1994, the Corporation had $3,882 invested in mutual funds and $8 invested in a guaranteed investment contract which are not categorizable by risk.
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Category 2 -
Category 3 - .!
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(3) Lease Ameements
Under the terms of a lease agreement dated June 1, 1988, the City has leased prl
known as Hosp Grove to the Corporation and the Corporation has leased back
City the same property and all improvements constructed thereon. The Agre
requires the City to pay semiannual lease payments to the Corporation equal debt service requirements of the Certificates of Participation issued b:
Corporation on June 1, 1988 (the Certificates). The lease payments are due 01
January 15 and July 15 until the Certificates have been paid in full. In additio City must pay all taxes, assessments, insurance, maintenance and utilities ( property and its improvements. The lease expires on August 1, 2008 or upon thc of retirement of the Certificates. The lease has been accounted for as a financing lease.
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e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
(Continued)
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[ 4 1 Certificates o fPrii a t c Rat in o
The Corporation issued the Certificates on June 1, 1988 in the amount of $8, pursuant to a Trust Agreement by and among the Corporation, the City a Trustee. The Certificates represent an undivided interest in the lease payment
by the City of Carlsbad to the Corporation. Interest is payable at rates rangir
5.75% to 7.6% per annum. The Certificates mature on August 1 of each year.
2008. Certificates maturing on August 1, 2008 are subject to mandatory redemp August 1 in each year on or after August 1, 2001, in amounts reflected in tl service requirements below. Certificates maturing on or after August 1, 1s
subject to call in whole or in part at the option of the Corporation at prices from 100% to 102% of the principal amount of the Certificates. The Corpori required to maintain a debt service reserve of $869,000. As of June 30, 19 balance is $900,230.
Debt service requirements to maturity for the Certificates are as follows:
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Year ending; June 30.
1994 $ 866,873
1995 866,733
1996 859,795
1997 860,985
1998 859,880
1999-2003 4,281,360
2004-2009 4.251.200
$12,846,826 0
Less amounts representing interest (5.291.826)
&2asuul
Changes in general long-term debt from the previous year result from paymc principal on the Certificates.
At June 30, 1994, the Corporation was in compliance with all significan
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covenants.
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f51 Fund Balances
The reserve for arbitrage represents amounts which may be owed to the f
government under the Tax Reform Act of 1986.
The reserve for debt service represents resources legally restricted to the payn general long-term debt principal and interest maturing in future years.
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e SUPPLEMENTAL DATA
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a CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combining Balance Sheet - Debt Service Funds
June 30, 1994
Lease Payment Reserve To1
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Assets
Cash and investments held by trustee $ 3,057 869,825 87: Net investment in direct financing lease 6,654,771 - 6,651 Interest receivable 7 29.965 2! 0
Total assets $6.657.835 899.7907.55'
Liabilities and Fund Balances
Liabi 1 it ies : Deferred revenue 6,654.771 - 6.654
Total liabilities 6.654.771 - 6.654
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Fund ba 1 ance s :
Reserved for arbitrage 2,625 - 2 e
Reserved for debt service 439 899.790 9oc
Total fund balances 3.064 899.790 902
e Total liabilities and fund balances $6.657.835 899.790-
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e CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combining Statement of Revenues 7 Expenditures
Debt Service Funds
Year Ended June 30, 1994
and Changes in Fund Balances -
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Lease Pa-pent Reserve 2 I e Revenues;
Lease payments $792 7 025 - 79: Interest on investments 1.112 73,012 - 74
Total revenues $793.137 73.012 &I
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Expenditures:
Principal $275,000 - 27: Interest 590,054 - 5 9(
Administrative 4.317 - - e - 8 6' Total expenditures 869,371 -
Excess (deficiency) of revenues
over (under) expenditures (76.234) 73.012 A
a Other financial sources (uses):
Operating transfers in 76 7 352 - 7( Operating transfers out - (76,352) (7(
Total other financing sources (uses) 76.352 (76.352) -
Excess (deficiency) of revenues and other financing sources over (under)
expenditures and other financing uses 118 (3,340) (*
Fund balances at beginning of year 2.946 903.130 90(
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Fund balances at end of year &==Lois 899.790%
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