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HomeMy WebLinkAbout1995-05-16; City Council; 13144; 1995-96 to buildout CIP proposal4 CI~ OF CARLSBAD - AGENY BILL J,Y .* - ~ TITLE: MTG. 5/16/95 PROPOSED 1995-96 TO BUILDOUT 3 DEPT. FIN CAPITAL IMPROVEMENT PROGRAM I 1 I RECOMMENDED ACTION: Accept report. Set public hearing for June 20, 1995. m a a I4 h 0 N a, sl '7 7 1-I 0 w ? .rl k cd 21 .r( U rl P 7 a JZ a, 4J 4J *I ITEM EXPLANATION: 1995-96 Capital Improvement Proqram The 1995-96 proposed budget for the Capital Improvement Program (CIP) toti $22.8 million, with estimated revenues of $24.1 million. Appropriations of $3' million for on-going capital projects remaining unspent at the end of FY 1994- will be added to the new 1995-96 CIP appropriations. A sum of $54 million \ then comprise the total 1995-96 CIP budget. Major projects scheduled for nl year include: Street and Interchange Proiects - A total of $1 2.9 million or 57% of the total 19! 96 CIP is slated for street improvements and Interstate 5 interchange expansio: The largest appropriation for a street project is Carlsbad Boulevard Shc Protection seawall with an additional $4 million appropriated from anticipal federal and state grants. Also included is additional funding for Rancho Santa Road, street improvements paid by the City of Encinitas on Olivenhain Road, a I W VI than originally scheduled. The final appropriation is also scheduled for Poinse a, The La Costa Avenue interchange will begin construction in 1995-96, a year ear 0 Camino Vida Roble. G preliminary design work on Palomar Airport Road between El Camino Real a Poinsettia interchange will total $7.3 million, with funding from the Commur u Lane interchange which is currently under construction. Project cost of a, a cd u 1-I a &I JZ a Facilities District No. 1. a, 5 k $1 a, h rl .rl U G 7 0 V Water and Sewer Projects - Over one-third of the planned CIP expenditures 1995-96 are for water and sewer projects, with appropriations totaling $7.7 mill included in the CIP. The Maerkle Dam Lining project will receive its E scheduled appropriation of $2.9 million. Bond funding and interfund water lo; will be needed to construct the $9 million water project. Funding for sewer accl i hole rehabilitation, sewer line replacement programs, and lift station upgrades .. z also planned. Debt service payments for previous potable and reclaimed w; 2 5 projects and the expansion of the Encina Wastewater Facility are included. the City program to bring facilities into compliance with the Americans \ 0 $192,500 is proposed for several existing park and City facilities, adding fund: 0 signals are scheduled for construction next year. In 1995-96, an appropriatiol z Traffic Siqnals, Park and Civic Projects - The remaining 9% of the 1995-96 CII 4 =i 0 allocated to traffic signals, park improvements, and civic projects. Three tr: 3 I - a 0 PAGE TWO OF AGENDA BILL NO. 13; ’L4Y Disabilities Act. Additional funding is also budgeted from Information System’s reserve citywide information processing. the Financial Information System which will upgrade software and computer equipmen 1995-96 to Buildout Capital Improvement Proqram The CIP outlines approximately I60 future projects scheduled for construction from 199 through buildout at a total cost of over $408 million. The largest expenditure catego for street and freeway interchange projects including the widening of La Costa Ave, Car Road construction, and expansion of their freeway interchanges. Park projects are second largest expenditure category and include development of park projects withi quadrants of Carlsbad. Sewer and water expansion and replacement projects inc construction of the Vista Carlsbad trunk sewer line, parallel ocean outfall and reclaimed potable water pipelines. Civic projects include the south Carlsbad Library, new City and expansion of the existing Cole Library. Revenues of $400 million are forecast to fund future capital projects, with the remail three major categories: 1) Developer - Fees generated by development are approximately 50% of the anticip future revenues. Fee revenues are projected in the CIP based on future developr forecasts. obtained from current fund balances, Sources of future revenues may be segregated 2) Community Facilities District (CFD) - CFD special taxes are projected at 26% of future revenues. Planned development is a major factor in developing CFD taxes 3) Other - These sources comprise the remaining 24% of revenues and include grants County sales tax program (Transnet), San Diego Gas & Electric funding for ur grounding utility lines, and sewer and water replacement revenues generated by fees. Detailed information on the proposed 1995-96 to Buildout Capital Improvement Progri included in the attached exhibits. Staff is requesting that Council set the public hearin the meeting of June 20, 1995 when input will be received from interested citizens groups wishing to comment on the proposed capital budget. EXHIBITS 1. Report on the 1995-96 Capital Improvement Program. 2. Projected Fund Balances and Revenue and Expenditure schedules. 3. Current and Future (1995-96 to Buildout) Projects. - $ e 8 EXHIBI 1.. 1995-96 CAPITAL IMPROVEMENT PROGRAM INTRODUCTION The City of Carlsbad Capital Improvement Program (CIP) is a planning document wh incorporates the current budget for capital projects with future planned revenues E expenditures. The 1995-96 Capital Improvement Program totals $22.8 million, a decrease of : million from the 1994-95 adopted budget of $51 million. Projected revenues for the 1995 program total $24.1 million and are down by $25.8 million from the 1994-95 estimates. The 19 96 revenues and expenditures are lower because of Port of Los Angeles funds received in 10 95 for the ,Batiquitos Lagoon Enhancement project. Carlsbad’s revenues are showing signs of economic recovery, with the most notice2 improvement in revenues related to the building industry. Both operating and cay development revenues have increased significantly from last year. Current year capital revenl collected as the result of new residential and commercial/industrial development are nearly tr the 1994-95 CIP estimates. The 1995-96 budget was prepared with cautious optimism. Proje continue to be built in phases over several years while other projects are deferred to future ye; This report and the accompanying CIP documents and schedules reflect the actions taker address the issue of funding availability weighed against the demand for facilities and the Ci ability to assume operational costs for new facilities. As the City continues to monitor growth in conjunction with revenues, the correlation betwc the amount of funds that can be spent on ‘projects and the amount of growth has becc apparent. For the past few years, development slowed and revenues also declined. Lo revenues in turn impacted project schedules which were established using the gro management standards as guidelines. Pending development projects were evaluated determine what revenues might be generated for the capital budget. Interwoven into this form are fiscal constraints which have become important to the scheduling of projects. Where facili were previously scheduled to meet maximum population expectations, the philosophy has shii to one where phasing of projects will more closely match incremental growth demands and meet growth management standards. Further, developers may be required to finance design i construction costs in cases where facility availability fails to meet growth management standa! The growth management plan used by the City needs to be viewed with flexibility, along ’ financial impacts external to the City, such as the general economy. A discussion of the C Growth Management Plan can be found at the end of this report. FUTURE CAPITAL IMPROVEMENTS Revenues Revenues for Capital Projects from now until buildout total $400 million and may be segreg: into three major categories: 1) fees generated by development in Carlsbad, 2) CommL Facilities District special taxes, and 3) other sources including grants, bond issues, deprecia overview of each funding source for projected revenues which support the CIP projects. replacement reserves, and letters of credit, The pie chart on the following page provide: 0 0 ._ FUNDING SOURCES 1995-96 TO BUILDOUT CAPITAL IMPROVEMENT PROGRAM DEVELOPMENT SEWER MFF 538.8 PUBLIC FACILITY FEE $53.4 10% 13% WATER MFF 544.6 PARK FEES $28.2 11% PLD AREAS $18.0 TRAFFIC IMPACT $21.4 4% WATlSEW REPL $48.9 CFD #1 577.5 19% CFD CFD 12 $27.9 OTHER f26.44% 7% 70, OTHER Total Revenues = $400.3 Million Approximately 50% of all CIP revenues are received as a result of development, and dependent upon assumptions made about the City’s annual growth in dwelling units commercial/industrial square feet. Development revenues include Public Facilities Fees (P Traffic Impact Fees (TIF), Park-In-lieu fees (PIL), Planned Local Drainage (PLD) fees, Water N Facility Fees (MFF), and Sewer Connection charges. Community Facilities District rever comprise 26% of the total, with planned receipts correlating to project scheduling development in the City. The remaining 24% of revenues are related to the receipt of grants County sales tax program (Transnet), San Diego Gas & Electric funding, sewer and v\r replacement revenues generated by user fees, and other miscellaneous sources. Growth Assumptions Several assumptions about the rate and type of growth were made in order to project revenues which result from development. Growth assumptions were made using the Grc Management projections, which continue to change along with the economic climate. Reside and non-residential development information was compiled by the Planning and Enginet Departments, and the Finance Department overlaid the economic forecast. Residential projections are higher than earlier growth estimates to reflect development curl anticipated. Residential development for 1994-95 was projected conservatively at 130 bui permits; current estimates approach 650 units by the end of the year. This rate of growth i expected to continue into next year as 222 units are projected for the 1995-96 fiscal Development estimates over the next 5 years have been raised slightly with 2,274 residential projected compared to 1,984 for the same period in last year’s CIP. Non-residential development projections remain conservative. However, vacancy rate commercial/industriaI buildings declined to 5.9% in 1994, down from 19% in 1992. Large standing buildings are especially scarce as their vacancy rate dipped to 3.9% in 1994. A and-see attitude has been adopted on whether the lower vacancy rates will translate increased industrial/commerciaI development in the near future. m 0 1.. The following table shows the number of residential units used for projecting 1995-96 to build CIP revenues. The total number of residential units projected at buildout is 54,000, v approximately 24,000 remaining to be built from this point forward. Projections in square fee non-residential construction are shown in the table. 1994-95 CIP Growth Assumptions Hesidential Non - Hesidential Year Units Square Feet 95-96 222 245,000 96-97 321 246,000 97-98 51 2 209,000 98-99 584 264,000 99-2000 635 368,000 Years 5-10 4,166 3,386,000 i Years I 1 -2030 17,427 16,636,000 1 I Total Future 23,867 21,354,000 The line graph below further demonstrates actual and projected growth and developn patterns occurring in Carlsbad. Development rates fell dramatically in 1987-88 due to implementation of the Growth Management Plan, and a spike in development occurred in l! 95. Over 50% of the 650 residential units projected for the current year are the result o affordable housing apartment complex in the southwest quadrant of Carlsbad. The overall tl shows an increase in residential development, with 222 units forecast in 1995-96. RATE OF RESIDENTIAL DEVELOPMENT Permits Issued UNITS 1000 800 ................................................................... YEARS 1 TO 6 OF CIP 0. : 88 89 90 91 92 93 94 95 96 97 98 99 2000 FISCAL YEAR - DWELLING UNITS 0 e .- Revenue projections used to calculate development fees were made using the gro\ assumptions identified on the previous page. The following information delineates how thc assumptions were applied to development fees to predict future revenues. Calculation of Future Fees The mix of attached and detached residential units was assumed to be 40% and 6 respectively. This is a change from the ratio applied last year and reflects the anticipated mi: residential development shown in current plans for each Local Facilities Management Zone. - building permit valuation used for computing Public Facilities fees was $89,500 per attact dwelling unit, and $153,000 per detached dwelling unit. The mix of commercial and indusi development is assumed to be 40% and 60%, respectively, with office space included in commercial category. A blended building permit valuation of $38 per square foot of construci was used to calculate non-residential Public Facilities fees. In order to calculate estimated revenues for Traffic Impact fees (TIF), the number of average d trips was computed for each type of use. An attached dwelling unit was assigned eight trips day and a detached unit ten trips per day. Each residential trip was valued at the current TIF of $84. The trips-per-day value for commercial and industrial buildings was averaged at 17 tr per 1,000 square feet of development, although the actual volume of trips generated commercial/industriaI building can vary widely depending on the ultimate land use. The va assigned to each commercial/industriaI trip was $34, the current TIF fee. This is the fifth year that Community Facilities District (CFD) No. 1 revenues have bt incorporated into the CIP. The implementation of CFD No. 1 in 1991 has reduced the tc amount of PFF and TIF revenues projected, as some projects previously funded from thl sources will now be funded through the CFD. Two additional community facilities districts included in the 1995-96 CIP. CFD No. 2 which is proposed to fund Rancho Santa Fe Road i Olivenhain Road has not yet been formally established, however an interim fee program i! Ranch area of Zone 13. Expenditures The CIP for 1995-96 to buildout outlines approximately 160 future projects at a total cos almost $408 million. The pie chart shown on the following page indicates that the larc expenditure category is for street projects at $1 07.5 million or 26% of the total. Included are construction and widening of arterials and roadways as well as the widening of some exis streets, such as the widening of La Costa Avenue, Cannon Road construction, and additic improvements to Palomar Airport Road. Construction of additional seawall protection Carlsbad Boulevard is also included. Freeway interchange projects totaling $13.5 million Cannon Road, La Costa Avenue, and Poinsettia Lane are also scheduled for construction. The second largest expenditure category is for park projects totaling $78.5 million, or 19% of total planned capital expenditures. Park projects include development of acreage withir projects include Poinsettia Park, Veterans Memorial Park, Larwin Park, Leo Carrillo Park community centers in the northwest and southwest quadrants. place. Preliminary plans have just begun for CFD Nom 3 to fund roads through the Carlsl quadrants of Carlsbad and remaining land acquisition for a municipal golf course. Major [ a ._ PROJECT ALLOCATION CAPITAL IMPROVEMENT PROGRAM 1995-96 to Buildout ~~ ~ PARKS TRAFFIC SIGNALS $78.5 19% LOAN 8 REPAYMENTS 516.6 4% CIVIC 554.9 *3% DRAINAGE $20.5 5% 1-5 INTERCHANGES 548.7 12% STREETPROJECTS $107.5 26% Total CIP to Buildout = $407.8 hlllllon Sewer projects represent the third highest level of expenditures at $64.5 million and include repayment of bonds for the expansion of the Encina Wastewater Facility, construction of the \ Carlsbad trunk line, and parallel ocean outfall. Civic Projects total $54.9 million and include : projects as the south Carlsbad Library, new City Hall, and expansion of the existing Cole Lib1 Water projects total $48.7 million and include Maerkle Dam lining and cover, reclaimed potable pipelines, and repayment of loans for water projects. Interfund loans and sched repayments total $16.6 million and include repayment of the Alta Mira (Poinsettia Park) purchase, Cannon Road, and various water projects. The smallest expenditure category i: traffic signals, at $3.1 million. Specific timing and cost estimates for all capital projects identified in the Current and Future (1995-96 to Buildout) Projects table following the narrz Project construction is reliant upon capital and operating fund availability as well as me established growth management standards for facilities. Wherever recommended pr scheduling changes occurred, they were based upon a thorough review of the Gr Management Plan in unison with revenue projections. For the past few years selected parE projected revenues. Following is a discussion of some of the major projects to be develc street projects have been phased and deferred in order to balance CIP expenditures b South Carlsbad Librarv - Funding for building the new library in south Carlsb; currently available utilizing Community Facilities District No. 1 revenues. Constructi the library was postponed to 1996-97, with opening expected in Spring of 1999, d projections of insufficient operating funds for the next few years. The Cole librc scheduled to be remodeled upon completion of the south Carlsbad library. 0 ._ b Golf Course - The City selected a site in the industrial corridor for a municipal golf cou during 1994-95. The site consists of 250 acres of vacant land directly south of the fut Veterans Memorial Park. After completion of the land acquisition, the City will mc forward with development plans. Funds were transferred from the general fund to acql land for the golf course. b Streets - The timing for improvements to Palomar Airport Road from El Camino Rea Camino Vida Roble and associated medians moved up in the 1995-96 CIP. Construcl will begin in 1997-98, a change from 2000-05, with preliminary design work beginnin! 1995-96. The project will complete street improvements to the major arterial fr Interstate 5 to Carlsbad’s eastern border. b Seawall - Utilizing anticipated federal and state grants, construction of the seawall alc Carlsbad Boulevard will provide additional shore protection along the City’s coastli The project will extend the current seawall at the Agua Hedionda Lagoon to protect roadway from impacts created by excessive storms or high wave action on the Pa( Ocean. b lnterchanqes - The Interstate 5 interchange at La Costa Avenue will begin construci in 1995-96, a year earlier than originally scheduled. The La Costa Avenue interchal is the third in a series of interchange expansions to improve circulation at crit connection points to City streets. b Poinsettia Park - Funds for the first phase of Poinsettia Park were appropriated in 1992-93 CIP, however declining operating revenues have delayed the projl Construction of phase I is now scheduled for late 1995 with the remaining pha scheduled for 2000+. The first phase of Poinsettia Park will include a ballfield, SOC field, tot lot, restroom and snack bar facilities, and a parking lot. b Interfund Loans - When capital projects are needed in advance of available funds, lo are made from other capital funds which have available reserves. Examples in the 1E 96 CIP include Maerkle Dam lining and covering, Cannon Road, and Palomar Air1 Road between El Camino Real and Camino Vida Roble. The loan is repaid when borrowing fund builds up sufficient funds. For example, the Palomar Airport Road improvements will be funded by San Dil County. Per an agreement, County funds are forwarded to the City each year, with 4 million accumulated for the project to date. Since the County’s final paymen scheduled for 2002 and road construction planned in 1997-98, Transnet Local funds be borrowed and repaid as County payments are made. 0 0 .- 1995-96 CAPITAL IMPROVEMENT PROJECTS The 1995-96 CIP identifies 40 projects which are budgeted at $22.8 million. These projects : projects which remain unspent at the end of FY 1994-95 will be added to the new 1995-96 ( appropriations. A sum of $54 million will then comprise the 1995-96 total CIP appropriation categorized as shown below. Appropriations of approximately $31.2 million for ongoing cap PROJECTS BY MAJOR CATEGORY CAPITAL IMPROVEMENT PROGRAM 1995-96 WATER $5.0 22% OTHER &_ - ". SEWER $2.8 72% $1.6 770 CIVIC STREET PROJECTS $0.5 2% 1-5 INTERCHANGES $7.7 34% $5.2 23% Total 95-96 CIP = $22.8 Million Street Proiects Street construction projects are 34% of the total 1995-96 expenditures at $7.7 million. The lar! appropriation for a street project is Carlsbad Boulevard Shore Protection seawall with additional $4 million appropriated from anticipated federal and state grants. Rancho Sant: Road is also receiving an additional $1.6 million appropriation from the planned Commc Facilities District No. 2 funds. Rancho Santa Fe Road is scheduled for construction in pha As housing units are built in this area, developers will fund the project. Other street appropriations include Olivenhain Road widening which utilizes funds from Encir the neighboring city to the south, preliminary design work on Palomar Airport Road betwec Camino Real and Camino Vida Roble, and various street and sidewalk upgrades. 1-5 lnterchanqes Interchange construction activities total $5.2 million, 23% of the total 1995-96 CIP. La C Avenue, Poinsettia Lane, and Cannon Road 1-5 interchanges are scheduled for appropria using Community Facilities District No, 1 and Traffic Impact funds, The Poinsettia Lane pr is Currently under construction and scheduled for completion in late 1995 at a total cost of million. e 1)’ .- Civic Proiects Civic projects total 2% of the 1995-96 expenditures at $542,000. Funding is budgeted upgrading city facilities to comply with the Americans with Disabilities Act and additional fund will be appropriated from Information Systems reserves for the Financial Information System. 1 system will replace and enhance existing software and computer equipment for cityw information processing. Sewer Proiects Sewer funding of $2.8 million reflects Carlsbad’s share of funding the Encina Wastewater Fac capital improvements, including funds to repay the debt for its recent expansion. Funding sewer access hole rehabilitation, sewer line replacement programs, and lift station upgrades also included. Water Proiects The water category, which includes reclaimed water, is 22% of the total 1995-96 CIP and shc appropriations of $5 million. The Maerkle Dam Lining project will receive its final schedcl appropriation of $2.9 million. This $9 million ‘project will need to be built through the issual of bonds and interfund water loans since sufficient funds are not available to complete the lin project on a pay-as-you-go basis. Most of the remaining allocation of water funds pays for d service on previous potable and reclaimed water projects. Parks and Traffic Siqnals The Other category in the pie chart includes park projects and traffic signals. Several exisi parks received appropriations to bring the City into compliance with the Americans \I Disabilities Act. The Federal law requires City facilities, including playgrounds, to be access to all persons. Three traffic signals are scheduled for construction next year. Two signals will replace exis’ stop signs and one signal will upgrade an existing signal at the intersection of El Camino F and Olivenhain Road. Unfunded Proiects The City has identified $9.7 million in projects for which there is currently no source of fund These projects are listed at the end of the Current and Future (1995-96 to Buildout) Projt schedule. One project, the Poinsettia Shores Soundwall, was added to this year’s CIP at Safety study, all qualify for future funding. As funding or critical need is determined, a pro may move into the Capital Improvement Program. request of a Carlsbad citizen. Traffic signals, added in 1994-95 as a result of the Traffic Si! e 0 .- SUMMARY While several projects continue to be phased due to lack of available capital and operating fun significant progress has been made on the traffic circulation projects. The I-5/Palomar Airr road interchange was completed and the second interchange at Poinsettia Lane is \i underway. The realignment and widening of Palomar Airport Road east of El Camino Real u completed in late 1994. Southbound Carlsbad Boulevard bridge over Batiquitos Lagoor scheduled for completion in May 1995. Restoration to the wetlands at Batiquitos Lagoon began in 1994-95, the culmination of sevc years of design, planning and obtaining state and federal agency approvals. The three y wetland restoration project will dredge the lagoon and restore fish and wildlife habitat. A char and offshore jetties will be constructed to restore full tidal flushing and nesting areas for varic species of birds will be built. The $30 million project is completely funded by the Port of I Angeles as mitigation for its recent expansion. Utilizing a low interest state loan, Phase I of the reclaimed water capital program has bc completed. Reservoir conversion and construction of water lines and pump stations allow d distribution of 2.75 million gallons of reclaimed water to meet current and near future w: needs. Review of the CIP finds that all projects identified in the 1994-95 CIP continue to be includec 1995-96. For the past few years, there have been some significant project scheduling chanl as the effects of the slow economy are felt on Carlsbad’s revenue stream. Lack of funds caused the City to rethink how it can accomplish building its capital projects. Generally, philosophy has been to build quality capital facilities which meet, and at times exceed, gro management standards whenever economically beneficial. This philosophy worked when gro and related revenues were substantial. Practices such as phasing projects over a perioc years, and timing projects when funds are available, have now been implemented. The City continue to provide quality capital facilities which meet the needs of Carlsbad’s citizens. ‘ 1995-96 to Buildout Capital Improvement Program reflects this goal. a e .- GROWTH MANAGEMENT PLAN The Growth Management Plan was developed and voted into law by the citizens of Carlsbac 1986. The plan was established in an effort to regulate development within the City by link residential, commercial, and industrial development directly to standards for availability of pul services and facilities. Standards for facilities are applied to the City as a whole, within eacl the City's four quadrants, and in the City's twenty-five community or growth management zor The Growth Management Plan adopted by the City Council has established precise standa for eleven public facilities. Standards must be met at all times as growth occurs. Facilities which standards have been established are as follows: - City Administrative - Wastewater Treatment - Circulation - Fire - Water Distribution - Schools - Library - Parks - Drainage - Open Space - Sewer Collection The Plan requires that appropriate public facilities be available, in conformance with the adop performance standards, as development occurs. Unless each of the eleven public fac standards have been met, no new development can occur. Where facilities were previot scheduled to meet maximum population expectations, projects are now phased to more clo5 match incremental growth demands. The Growth Management Plan impacts both the operating budget and the Capital Improver Program. As the Growth Management Plan was being developed, very little construci occurred which resulted in reductions in both operating and capital development rek revenues. Revenues were expected to recover as standards were met and reasonable level' development began to occur. The Growth Management Plan directly affects the operating i capital budgets by requiring the construction of facilities and subsequent operation of th' facilities to meet the standards. Facilities such as community centers, parks, and fire statil have been constructed under this program. The Capital Improvement Program has been designed to specifically address areas wt- facilities do not comply with the adopted performance standards. With the adoption of the 1 E 96 CIP, compliance with the Growth Management Plan is assured. 0 0 ._ CALIFORNIA ASSEMBLY BILL 1600 (AB 1600) In 1987 the California Legislature passed Assembly Bill 1600 (AB 1600) which set forth process a city or county must follow to establish developer fees to finance public facilities. 1 legislation applies to fees established, increased, or imposed on or after January 1, 1989, effective date of the law. AB 1600 contains four general requirements: b A llnexusll or connection must be established between a development project or clas! project and the public improvement being financed with the fee. All AB 1600 fc adopted by the City have met the nexus test. For example, Traffic Impact, Bridge : Thoroughfare District and Drainage Sewer Benefit Area fees were all established un AB 1600. b The fee must be segregated from the General Fund. Carlsbad segregates all cay funds not only from the General Fund but also each classification of fee as well. b Fees collected by a city or county must be spent or committed to a project within a year period. Funds are viewed to be committed if they are programmed to be spenl a specific project(s). If the money is not spent, findings must be made describing continuing need for that money each fiscal year after the five years has expired. The ( of Carlsbad commits the revenues from these fees through its Capital Improver Program budget. This budget, which is adopted by the City Council, sets forth the Ci Capital expenditure program from the current year to projected build out of the City. ' expenditure plan is updated annually as part of the City's budget process. b Refunds must be made only if the City cannot make the required findings. At this time refunds are due because the City's Capital Improvement Program commits all AB 11 fees to projects to be constructed both in the current year and in the future. 0 0 EXHIBIT .- CITY OF CARLSBAD CAPITAL FUND$ PROJECTED FUND BALANCES FOR FY 1994-95 FUND GENERAL CAPITAL CONST. PUBLIC ART GOLF COURSE PUBLIC FACILITIES FEE ZONE 5,13,16 PARK FEE PIL AREA 1 NW PIL AREA 2 NE PIL AREA 3 SW PIL AREA 4 SE LETTERS OF CREDIT TRAFFIC IMPACT FEE TRANSNET/LOCAL TRANSNET/HIGHWAY TRANSNET/BIKE TRANSNET/STP TDA STATE GRANTS COUNTY GRANTS ASSESSMENT DISTRICTS CFD #1 CFD #2 CFD #3 FEDERAL GRANTS SDG & E PLANNED LOCAL DRAINAGE SEWER CONNECTION SEWER REPLACEMENT WATER - RECLAIMED JULY 1,1994 UNRESERVED BALANCE 3,382,822 314,000 2,002,392 9,592,776 0 1,728,340 506,450 204,501 742,229 0 2,055,908 521,088 275,449 6,531 237,862 249,805 21,345 843,981 1,656,647 8,480,645 2,646,147 0 0 0 3,259,300 1 1,007,204 3,946,064 150,315 ESTIMATEQ ESTIMATED JUNE 30,196 ESTIMATED CAPITAL DEBT SERVICE PROJECTEC REVENUES EXPENDITURES & OTHER BALANCE 1,216,123 1,770,951 0 2,827,9 20,000 98,000 0 236 ,o 1,250,000 861,334 1,731,500 659,5 1,535,000 575,330 0 10,552,4 1,888,000 0 0 1,888,O 82,000 0 0 1,8103 20,000 0 0 526,4 29,000 0 0 2333 37,000 0 0 779,2 0 0 0 325,000 604,890 0 1,776,O 1,000 144,139 0 132,3 0 6,402 0 1 1 1,000 0 0 248,8 5,000 158,205 0 96,6 125,221 53,489 0 93,O 232,000 0 0 1,075,9 0 256,989 0 1,399,6 5,325,000 2,799,675 135,300 10,870,6 380,000 163,288 22,400 2,840,4 15,000 114,359 0 421,7 50,000 0 50,000 0 0 0 400,000 376,238 0 23,7 85,000 342,686 1 15,000 2,886,E 935,000 236,698 0 1 1,705,E 1,785,000 380,304 0 5,350,i 1,506,000 1,172,342 170,000 313,s WATER - MAJOR FACILITY 4,389,903 2,405,000 2,074,849 I ,!232,000 3,438,C TAX INCREMENT BOND 2,004,325 190,000 3,900 0 2,190,4 AFFORDABLE HOUSING 239,760 0 0 0 239,i OTHER 849,772 1,003,828 961,893 0 891 ,i 1 TOTAL CAPITAL FUNDS 69,045,172 23,476,172 13,893,324 3,750,400 74,877,f WATER - REPLACEMENT 7,729,6 1 1 2,620,000 737,363 244,200 9,368,C 0 0 .- CITY OF CARLSBAD CAPITALFUNDS PROJECTEDFUND BALANCES FOR FY 1995-96 JULY 1,1995 PROJECTED ESTIMATED FUND BALANCE REVENUES GENERAL CAPITAL CONST. 2,827,994 1,053,319 PUBLIC ART 236,000 3,095 GOLF COURSE 659,558 0 PUBLIC FACILITIES FEE 10,552,446 684,362 ZONE5,13,16 PARKFEE 1,888,000 98,100 PIL AREA 1 NW 1,810,340 33,396 PIL AREA 2 NE 526,450 0 PIL AREA 3 SW 233,501 13,650 PIL AREA 4 SE 779,229 19,110 LETTERS OF CREDIT 0 0 TRAFFIC IMPACT FEE 1,776,018 309,945 TRANSNET/LOCAL 421,729 0 TRANSNET/HIGHWAY 1 32,310 400,000 TRANSNET/BIKE 129 0 TRANSNET/STP 248,862 0 TDA 96,600 270,400 STATE GRANTS 93,077 2,332,000 COUNTY GRANTS 1,075,981 191,442 ASSESSMENT DISTRICTS 1,399,658 0 CFD #1 10,870,670 3,874,747 CFD #2 2,840,459 605,000 CFD #3 0 0 FEDERAL GRANTS 23,762 3,768,000 SDG&E 0 0 PLANNED LOCAL DRAIN’G 2,886,614 264,732 SEWER CONNECTION 11,705,506 1,134,421 SEWER REPLACEMENT 5,350,760 1,100,000 WATER - RECLAIMED WATER 3 13,973 170,000 WATER - MAJOR FACILITY 3,438,054 3,996,231 WATER - REPLACEMENT 9,368,048 2,025,000 TAX INCREMENT BOND 2,190,425 0 AFFORDABLE HOUSING 239,760 0 1994 - 95 CONTINUING APPROPR. 3,556,098 121,220 440,853 5,548,682 0 0 0 0 0 0 1,164,663 108,992 462,819 0 0 353,000 402,341 0 1,237,097 1,891,840 1,482,743 0 1,783,430 0 119,959 383,403 530,688 0 2,454,087 6,520,113 1,827,100 0 NEW APPROPR. 309,500 0 200,000 580,000 0 0 0 0 0 0 419,000 100 ,000 0 0 0 2,000 2,000,000 50,000 0 5,107,000 1,642,000 0 2,000,000 0 1,000,000 1,100,000 225,000 1,673,700 4,278,957 444,016 0 0 1995 - 96 JUNl TOTAL CIP PR( APPROPR. B/ 3,865,598 121,220 640,853 6,128,682 0 0 0 0 0 0 1,583,663 208,992 462,819 0 0 355,000 2,402,341 50,000 1,237,097 6,998,840 3,124,743 3,783,430 0 1,119,959 2,057,103 1,630,688 225,000 6,733,044 6,964,129 1,827,100 0 OTHER 891,707 1,800,000 809,222 1,700,000 2,509,222 I TOTAL CAPITAL FUNDS 74,877,620 24,146,950 31,198,350 22,831,173 54,029,523 e 0 .- CIN OF CARLSBAD CAPITAL FUNDS REVENUE ESTIMATES FOR 1995-96 FUND GENERAL CAPITAL CONST. PUBLIC ART GOLF COURSE PUBLIC FACILITIES FEE ZONE 5,. 13 & 16 PARK FEE PIL AREA 1 NW PIL AREA 2 NE PIL AREA3 SW PIL AREA4 SE LElTERS OF CREDIT TRAFFIC IMPACT FEE TRANSNETLOCAL TRANSNET/HIGHWAY TRANSNET/BIKE TRANSNETISTP TDA STATE GRANTS COUNTY GRANTS ASSESSMENT DISTRICTS CFD #l CFD #2 CFD #3 FEDERAL GRANTS SDG&E PLANNED LOCAL DRAIN’G SEWER CONNECTION SEWER REPLACEMENT WATER - RECLAIMED WATER WATER - MAJOR FACILITY WATER - REPLACEMENT TAX INCREMENT BOND AFFORDABLE HOUSING 1992-93 ACTUAL REVENUES 374,271 16,999 643,566 885,943 25,820 47,247 37,559 75,016 90,736 0 244,478 42,844 2,257,794 0 0 37,073 85,690 217,138 160,985 2,993,587 0 0 0 0 164,536 918,603 0 0 1,025,568 2,345,586 84,974 0 OTHER 0 I TOTAL CAPITAL FUNDS 1 2,776,013 1 993 -94 ACTUAL REVENUES 970,364 16,922 105,934 1,524,573 94,639 94,594 28,462 10,781 39,132 0 326,558 147,848 15,427 373,964 255,862 512,989 916,396 212,305 76,417 3,016,253 2,427,995 0 0 0 372,044 976,197 4,067,123 942,840 876,179 2,304,313 119,137 0 1994-95 (1) 1995-96 (1) ESTIMATED ESTIMATED REVENUE REVENUE 1,216,123 1,033,319 20,000 3,095 1,250,000 0 1,535,000 684,362 1,888,000 98,100 82,000 33,396 20,000 0 29,000 13,650 37,000 19,110 0 0 325,000 309,945 15,000 0 1,000 400,000 0 0 1 1,000 0 5,000 270,400 125,221 2,332,000 232,000 191,442 0 0 5,325,000 3,874,747 380,000 605,000 50,000 0 400,000 3,768,000 0 0 85,000 264,732 935,000 1,134,421 1,785,000 1,100,000 1,506,000 170,000 2,405,000 3,996,231 2,620,000 2,025,000 0 0 190,000 0 1,245,651 1,003,828 1,800,000 22,070,899 23,476,172 24,146,950 I (1) INCLUDES INTERFUND LOANS ORTRANSFERS. e 0 .- CITY OF CARLSBAD CAPITAL FUNDS DETAIL REVENUE ESTIMATES FOR FY 1995-96 FUND OR DEVELOPER LOAN OR DEPRECIATION T( FUND FEES TAXES GRANTS OTHER BOND ISSUE TRANSFER REV GENERAL CAPITAL CONST. 753,319 300.000 1. PUBLIC ART GOLF COURSE PUBLIC FACILITIES FEE 684,362 ZONE 5,13,16 PARK FEE 98,100 PIL AREA 1 NW 33,396 PIL AREA2 NE 0 PIL AREA3 SW 13,650 3,095 PIL AREA4 SE 19,110 LEllERS OF CREDIT TRAFFIC IMPACT FEE 309,945 TRANSNETLOCAL TRANSNET/HIGHWAY 400,000 TRANSNET/BIKE TRANSNET/STP TDA 270,400 STATE GRANTS 2,332,000 2, COUNTY GRANTS 191,442 ASSESSMENT DISTRICTS CFD #1 45,747 3,179,000 650,000 3, CFD #2 605,000 CFD #3 FEDERAL GRANTS 3,768,000 3, SDG & E PLANNED LOCAL DRAIN’G 264,732 SEWER CONNECTION 1,084,421 50,000 1, SEWER REPLACEMENT 1,100,000 1, WATER - RECLAIMED WATER 170,000 WATER - MAJOR FACILITY 996,231 3,000,000 3, WATER - REPLACEMENT 725,000 1,300,000 2, TAX INCREMENT BOND AFFORDABLE HOUSING OTHER 1,700,000 100,000 1, TOTAL 4,154,694 4,304,000 7,211,842 2,503,319 3,000,000 2,973.095 24, - 0 0 .- CITY OF CARLSBAD CAPITALFUNDS BUDGET EXPENDITURESCHEDULE 1992- 1993 TO 1995- 1996 1994 -95 1995 -96 I! 1992-93 1993-94 1994-95 (1) CONTINUING NEW TC FUND ACTUAL GENERAL CAPITAL CONST. 472,030 PUBLIC ART GOLF COURSE PUBLIC FACILITIES FEE ZONE 5,13 & 16 PARK FEE PIL AREA 1 NW PIL AREA 2 NE PIL AREA 3 SW PIL AREA 4 SE LERERS OF CREDIT TRAFFIC IMPACTFEE TRANSNETLOCAL TRANSNET/HIGHWAY TRANSNETIBIKE TRANSNET/STP TDA STATE GRANTS COUNTY GRANTS ASSESSMENT DISTRICTS CFD #1 CFD #2 CFD #3 FEDERAL GRANTS SDG&E PLANNED LOCAL DRAIN’G SEWER CONNECTION SEWER REPLACEMENT WATER - RECLAIMED WATER WATER - MAJOR FACILITY WATER - REPLACEMENT TAX INCREMENT BOND AFFORDABLE HOUSING ACTUAL 753,895 15,740 19,980 1 1,647 794,356 1,549,809 798,606 0 0 0 0 0 0 0 0 0 0 0 0 313,938 959,097 604,890 583,659 51,044 114,359 895,513 1,109,800 144,139 27,162 340,271 6,402 0 18,000 0 31,397 389,483 158,205 36,762 910,039 53,489 118 399,773 0 199,426 49,279 256,989 2,465,333 1,487,413 2,799,675 0 85,969 163,288 0 0 0 0 0 376,238 0 0 0 0 0 342,686 431,628 36,006 236,698 0 0 380,304 405,732 1,470,983 1 ,172,342 568,860 1,033,925 2,074,849 861,091 1,544,870 737,363 163,180 2,186,396 3,900 68,681 . 114,721 0 71 ESTIMATED 1,770,951 98,000 861,334 575,330 APPROPR. 3,556,098 121,220 440,853 5,548,682 0 0 0 0 0 0 1,164,663 108,992 462,819 0 0 353,000 402,341 0 1,237,097 1,891,840 1,482,743 0 1,783,430 0 119,959 383,403 530,688 0 2,454,087 6,520,l 13 1,827,100 0 APPROPR. AF 309,500 0 200,000 580,000 0 0 0 0 0 0 41 9,000 100,000 0 0 0 2,000 2,000,000 50,000 0 5,107,000 1,642,000 0 2,000,000 1,000,000 1,673,700 1,100,000 225,000 4,278,957 0 444,016 0 0 OTHER 307,627 1,164,344 961,893 I TOTAL CAPITAL FUNDS 9,409,333 15,718,250 13,893,324 I 809,222 1,700,000 I 31,198,350 22.831.173 f - ... - 5' \ BE -I" m 3 I- W z5 0 ' (Dc I1 d ug an w > - mc WI UE an >B : - v) d.a + q4 50 yg au : aT - q ;z ga eg QF += "7. $2 2': Z-I q gi _(o 01 go 5% $i :z a1 .- UI n+ >: Za -0 = &k $0 a= 0u 20 nu :E a1 3 a+ or 32 82 LT~ EE 52 $; 0 U i%! 2 i? 0, -a 2 0 W F 2 I- 0 : E $$ a - I 3 I $ 1 I I I 1 I I I ! I I I I ! I - - , I 1 v) 0 I- W o' U R 0 I 0 e II) EXHIBl """""""" 00 00 0 0 0- 9 0- a- -tm 88 0- g E ------""""" 8 00 00 0 00 00 m 0 0- 0- 0- 0 m- 0- 0 0 0 0 z h- 0 c! 8 N IC 6 -""" ---""" 0 " """"""" 0 0 0 0- 0 0 0 N 0 0 Lo 0 0 0 Lo 0- 0- Lo- s IC g 8 888 8 9 9 9 0 RRS s mr 8 6 r r """""""" h """""""" 0 0 0 00 00 9 0- 0- 8 0- ; 9 SP 0 0 N N. 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I i3W I oqqq.cn;s;s;l'l I Ww~~g~v)>o-"aaa~ G::g$&&+i:ddgggg; Y=,W U d: ~~~~s~~Y~lllllllll ,,aooo04S44( ?8$~Saw >3 <z=ggoaaaauc z~~t;=lozw~~~~~~~~~~~ ozzv)v)v)555z55i Iaow~Snv)v)++++++++,-i ~aa0'~~36686666$$' a i$ $1 -, 0 0 tu 3 FOE THE INlrOAMATI( May 15, 1995 1 THE CITY COUNC I&" L'i-9 / 1 h FI q { 3ATE CI'V MI LM-- . ...."_". CA CL TO: CITY MANAGER VIA: FINANCE DIRECTOR FROM: Assistant Finance Director i L.'d 1995-96 ISSUE AND INFORMATION STATEMENTS Attached, plese find the Issue and Information Statements that have been develor during the 1995-96 Capital Improvement Program review process. They will presented at the Council CIP workshop meeting on the May 16 with action to be tal on them at the June 20 meeting when the CIP is adopted. % CHERYL E. ALLEN c: Financial Managment Director District General Manager District Engineer Library Director F:\BUDGET\CIPISSUE 0 e ISSUE STATEME CONSTRUCTlON iOF'SOUT~H.CARLSBAD-iLjBRAF Backaround The Cole library is very popular with both residents and non-residents, It is one of the most u libraries in the State with an average daily traffic of 2,000 people and each year the demand services at the Cole library continues to increase. The Director reports that it cannot contil to operate effectively and will become more and more inefficient over time. The South Carlsbad Library is optimistically scheduled for construction in the proposed 1995 Capital Improvement Program in 1996-97. Funding for building the library is currently avail: utilizing Community Facilities District (CFD) No. 1 revenues. Construction of the library \ postponed due to projections of insufficient operating funds for next few years. The library take approximately two years to construct and considering current scheduling would open to public in the Spring of 1999. There are issues regarding construction of the South Carlsbad library which impact gro management and the City's operating and capital budgets. Operating Costs - With the scheduled opening of the larger library, operating costs to General Fund would increase. Although the Cole library would close for its scheduled remc and current employees would move to the new library, several positions would need to be fill To contain costs, six positions are unfunded in the Library budget; filling those positions wc add $230,000 to the General Fund operating budget. In 2001, after the Cole library is reopen additional staffing would be required at a estimated cost of $775,000. Thus, the cost to staff: operate the South Carlsbad library and remodeled Cole library would increase the challengc balancing the General Fund budget. Capital Expenditures -The cost to construct the new library is $1 1.2 million and will require CFD's first issuance of bonds. In order to issue debt for the library and to continue the pact street and interchange projects scheduled in the CIP, projected increases to the CFD vacant Ii tax rates would need to be implemented. For example, at the end of two years the tax rates undeveloped property with residential medium (RM) land use may need to be increasec $1,152, up from the current $1,004 per developable acre. Industrial vacant land tax rates cc almost double, rising from their current $483 per developable acre, to $943 per acre. Estimates show that the CFD will support the bond issue, even though the district has a curl tax rates. After five years, the County will move to collect delinquent property taxes through sale and the City would recover its proportionate share from the proceeds. CFD delinquencies would be disclosed when the bonds are issued. It is likely the City would cover with bondholders to foreclose on any new CFD delinquencies. Sufficient bonds to construct new library could be issued since the taxes paid by most of the district property owners current. delinquency rate of 18%. Recovery of CFD tax delinquencies is calculated into projected C 0 0 Growth Management Standards - Library standards in the Growth Management Plan reql .8 square feet of library space per capita. The Library performance standard calls for schedul "construction within a five year period." In other words, when the demand for the facility reacl a certain level, the City has a "five year period" in which to finance and construct additic facilities. In 1986, Citywide Plan performance standards used the assumption of 1,250 units per year. - "five year period" means the demand equal to 1,250 units per year for five years, for a tota 6,250 units. The actual number of units issued since November 1986 totals 3,270 units, slig more than half of the original assumption used in the Citywide Plan. Translating this into dem; for facilities, it is clear that the actual demand created since 1986 is significantly less than w was originally projected. Demand for library facilities can be allowed to accumulate for longer than five calendar years i still be in compliance with the intent of Growth Management, provided that the total numbe dwelling units issued after November 1986 does not exceed 6,250. The same concept can applied to parks and City administrative facilities. This finding is especially important for facili that have a financial guarantee for construction but which must be delayed for other reasc such as a shortage of operating funds. Alternatives At this time, Council may wish to consider the following alternatives to the planned yea1 construction of the South Carlsbad library and subsequent remodel of the Cole library: 1. Move the planned library improvements back one year, which will defer the openins the South Carlsbad library to 2000. 2. Upon opening the South Carlsbad library, plan to close the Cole library until its reopen is required to meet growth management standards. 3. Maintainthe planned construction of the new library beginning in fiscal year 1996-97 i subsequent remodel of the Cole library in 1998-99 as shown in the proposed CIP. F\USERS\EROPWWPDATA\BUDGET95.96\ISSUE.LIB e 0 INFORMATION STATEME The future Financial Information System (FIS) is well underway. The FlS will replace the curr 10 year old system and meet the demand for timely financial information which is vital to City’s management. With the advent of newer technology, systems are now available to the ( which will provide information as well as perform many of the repetitive data entry tasks, tl saving thousands of employee hours annually. The system will replace and enhance exisl software and computer equipment for citywide information processing. A preliminary draft information systems needs assessment and long-range plan for the City I been prepared. Staff from almost all City departments were interviewed at length and curr requirements and future needs were developed, organized and compiled. After further s review, the needs assessment and long-range plan will be brought to Council for approval A request for proposal (RFP) was distributed to probable suppliers, with proposals due bacC the City by May 19. After evaluation of the responses to the RFP, several vendors will selected and demonstrations carried out at other agencies. The final few vendors will be requi to conduct demonstrations on site at the City to determine their ability to meet Carlsbad’s unic requirements. Upon finalizing the recommendations for the hardware and software solutions, staff will returr Council for authorization to award the contract and begin implementation of the system. implementation schedule will be developed concurrent with vendor selection. Fiscal ImDact The proposed 1995-96 CIP includes an additional $100,000 appropriation from lnformat Systems reserves for the FIS. With the addition, funding will total: General Fund Balance Water District Sewer Fund Information Systems Total $ 580,000 50,000 50,000 320,000 $1,000,000 F:\USERS\EROPWWPDATA\BUDGET95.96\lNFOSTAT.FiS 0 e INFORMATION STATEME The sewer and water enterprise funds are financed and operated like a private busin enterprise. The cost (expenses, including depreciation) of providing sewer and water servi on a continuing basis to the citizens of Carlsbad will be recovered primarily through L charges, Sewer or water connection fees represent new development’s fair share of the exis system or the cost of increasing capacity. For budgetary purposes, the City’s enterprise funds are divided into capital and opera budgets. All water and sewer operations are processed with the annual operating bud! Council receives quarterly Financial Status Reports which report .only operating revenues i expenses. Capital expenses to replace or expand facilities are included within each ye Capital Improvement Program (CIP). The City’s audited annual financial statements comt revenues and expenses for operations and capital into a cohesive whole so that the er enterprise can be viewed. The graphics on the following pages depict the revenue sources and funds used by the se and water funds. F:\USERS\EROPE\WPDATA\BUDGET95.96\iNFOSTAT.ENT e 1) ’. =go 222 23 a02 c3 z z z LL U u1 i5 a 5 3 I- z W To 5k 8s a a W PP -?@ 0 & @-- 0 & P PP P m Z 0 F w 0 2 a b z 0 5 z a 8 n a a Z - 2 W a CT) W cn a I 0 a 3 n U w 3 2 -E e e (3 z 2 z ti K 5 a $ W v) Kc/) ua cT)a $r .<\\ %e? F 0 4* + c z UI oc CI) Z Lu 0 n I . I 5. e e * ISSUE STATEME Backqround In 1990, the Carlsbad Municipal Water District prepared the water system master plan. The foc of the report was the distribution system for the City's water supply, with various improveme needed for the distribution system identified at that time. Alternative water resources informal was not presented, and the water supply was assumed to be totally imported water to meet buildout water demands within the City of Carlsbad. Since that time, District and City operations were consolidated, Factors not considered in I! need to be incorporated into an overall local water resources development plan for the wi system. In addition, other important external changes affecting water demand and the Ci supply of imported water have occurred. b General Plan - In 1994, the General Plan was updated outlining the land uses, maxim dwelling units, and population for the "horizon year" 15 or 20 years in the future. 1 information provides a new basis for estimating water demands. b Growth Management - Incorporation of the City's growth management plan into water development plan will provide assurance that the infrastructure will be in place meet the development needs of the City. b Habitat - The City is developing a habitat management plan that identifies existing hab preservation areas and a program to facilitate the permitting process for water proje that might impact those areas. In addition, federal and state environmental consideratic pose severe constraints on the future water distribution system. b Reclaimed Water - In 1990, the City adopted a reclaimed water master plan supplement the available water supply. Reclaimed water has the benefits of reducing demand for imported water. It also utilizes the treated waste water rather than placin in the ocean and provides a more reliable source of water to irrigate agriculture, par golf courses, and roadway landscaping. b Imported Water Supply - The reliable supply of imported water available since 1980 t been reduced 35% during normal rainfall years as a result of environmental mitigatic and other States beginning to take their full entitlement to the Colorado River Wa During drought conditions, imported water can be further reduced resulting in possible need to ration the available supplies. MWD Response to Imported Water Supply Reduction In responding to the increasing need for imported water and reductions in available supply, (IRP). The MWD Board of Directors will begin the process of adopting the findings containec the IRP in May 1995. The conclusions in the IRP state that MWD will provide 100% of wholesale water demand 90% of the time during normal rainfall years and 80% of the time dur Metropolitan Water District (MWD) in 1993 began pursuing an integrated water resources p T. 1.' e 9 . ,, c drought years through the combined development of six targeted programs including: Wi conservation, reclaimed water, groundwater programs, Colorado River Water, State Project Wa and Central Valley water transfers. With the adoption of the IRP, and assuming full implementation of its programs, the impol water supply will be reliable for 80% to 90% of Carlsbad's demand for water. Alternative sour of water or other options should be considered to make up the difference, Council Water Goals and Plans Council developed two goals for 1995: evaluation of a desalination program and alternative Wi supply projects. These goals are partially in response to the imported water supply situatl increases in water rates at the wholesale level, and recent developments in water produc projects such as desalination through the capacitive deionization process. However, it is nc that local water resource projects, including reclaimed water, have a high cost and are relati1 complex to construct, operate and maintain. In 1990, Council adopted the Reclaimed Water Master Plan which implements a reclaimed WE system in five phases. Phase I was recently completed and supplies reclaimed water to m irrigation needs for agriculture, golf courses, and landscaping in La Costa and Aviara. The Ph: I1 expansion calls for a $20 million expenditure that includes a tertiary treatment plant adjacl to the Encina Water Pollution Control Facility. Water Resources Development Plan The purpose of the water resources development plan is to provide an orderly, cost-effecl improvement program designed to meet the City's present and future water needs. The p would tie water, reclaimed water, and sewer plans together with the General Plan, activities MWD and San Diego County Water Authority, local water sources, existing faciliti environmental constraints, and the cost of various options. The estimated cost of the water resources development plan is $250,000 to be shared by ' water and sewer enterprise funds. Water replacement funds and water major facilities fees wo each contribute $1 00,000, with a sewer contribution of $50,000. Alternatives At this time, Council may wish to consider two water supply alternatives. 1. Establish overall plan for future water needs which will identify sources and poten development of local water resources to make up for the imported water supply short and bring water availability up to a specified degree of reliability. 2. Proceed on the current path of developing a reclaimed water system combined w imported water. F:\USERS\EROPE\WPDATA\BUDGET95.96\ISSUE.H20