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HomeMy WebLinkAbout1995-11-14; City Council; 13397; FINANCIAL REPORT FOR FISCAL YEAR 1994-95 AND FIRST QUARTER 1995-96? t h k i? 83 6 c 0 .. z 0 F: 0 a -I G z 3 0 0 3" Q a _- c DEPT. HD. & ClTYAlTY. @ 5 1y CI OF CARLSBAD - AGENDA BILL AB# - TITLE: FINANCIAL REPORT FOR FISCAL YEAR 1994-95 AND FIRST QUARTER 1995-96 / MTG. 1 1 /I 4/95 P DEPT. FIN, CITY MGR.~ RECOMMENDED ACTION: Accept and file the 1994-95 fiscal year end financial report and the first quarter financial report for the 1995-96 fiscal year. Adopt Resolution No. 3 5 -32b increasing the revenue estimates and budget allocations for the General fund by $500,000 and transferring $500,000 to the General Capital Construction fund from the General fund balance. ITEM EXPLANATION: The attached reports (Exhibits 2 and 3) summarize the financial results for the fiscal year ended June 30, 1995 and for the first quarter of the 1995-96 fiscal year for the General fund, the Water and Sewer Enterprise funds and the Redevelopment Agency . The books have been closed for the 1995 fiscal year and the preparation and audit of the Comprehensive Annual Financial Statements (CAFR) is under way. We expect the audit to be completed in November and the CAFR will be printed and distributed shortly thereafter. Although, the financial statements are still subject to audit adjustments, they are not expected to vary materially from the numbers presented here. GENERAL FUND The General fund ended 1994-95 with an unreserved, undesignated fund balance of $1 1.3 million which is $859,000 higher than projected. The increase was due to higher than anticipated revenues and spending that was under budget but higher than projected. Revenues totaled $41 million which is $2.1 million higher than estimated. Expenditures on a budgetary basis (excluding planned transfers) were $38.5 million, 3.6% less than the budget of $39.9 million. Revenues so far through September, 1995 are $6.8 million which is $389,000 or 6% higher than the estimate. The majority of the increase is due to a higher level of building activity than was anticipated. Both construction permits and other licenses and permits revenues are well ahead of plan and it is expected that they will remain so for the balance of the year. Expenditures are as expected for the first quarter of the year. WATER ENTERPRISE Revenues for the Water District's operating fund for the 1994-95 fiscal year totalled $1 3.4 million which is $61 3,000 greater than last year and $984,000 over the t 0 0 Page 2 of Agenda Biii No. 13, 3 ’? ? v estimate for the year. Water sales were below last year by $99,000 or 1% despite an increase in the water rate due to low water sales in the latter half of the year. However, the increase in the ready-to-serve charge helped to offset this loss and allowed the fund to end the year with revenues greater than the previous year. Expenses for the year totalled $11.8 million, an decrease of $51,000 over last year’s. Purchased water declined by 1 % which was similar to the decline seen in the water sales revenue. In addition, capital spending was down significantly this year. For the year end, the Water Enterprise shows an operating income of $1.6 million with working capital of $6.9 million. Through September 30, 1995, the Water District has collected $3.7 million in revenues and expended $2.8 million resulting in operating income for the quarter of close to $1 million. SEWER ENTERPRISE Income to the Sewer Enterprise for the 1994-95 fiscal year totals $5 million which is essentially the same as the previous year. Expenses for the year total $4.3 million reflecting an increase of $288,000. The majority of the increase is due to the unusually low expense in 1993-94 for Encina Plant Services as an adjustment to prior period payments was made in that year. All other expenses are as expected. The Sanitation Enterprise fund shows an operating income of approximately $720,000 for the 1994-95 fiscal year with working capital of $2.9 million. No significant changes were noted for the Sewer Enterprise fund in the first quarter of the 1995-96 fiscal year, Revenues totalled $1.2 million with expenses of just over $1 million resulting in operating income of $108,000 for the quarter. REDEVELOPMENT AGENCY Revenues to the Agency totaled $1.3 million for the year ended June 30, 1995 which is $92,000 less than last year’s revenues. The shortfall is the result of lower property values as assessed valuations within the redevelopment area fell by 14% for the 1994-95 fiscal year. Expenditures totalled $1.6 million which was essentially equal to the budget. Expenditures and operating transfers exceeded the Agency’s revenues by $250,000 for the 94-95 fiscal year. The unreserved balances at June 30, 1995 total $1.6 million. Revenues through the first quarter are minor as the first substantial property tax payment won’t be received until December. Expenditures are as expected for the first quarter. w 0 Page 3 of Agenda Bi 1) No. 17 3 5 7 a Additional information regarding the financial results for all of these funds is available in the attached report. FISCAL IMPACT: Due to the higher level of revenues received in fiscal year 1994-95 in the General fund and the positive results of the first quarter, staff is recommending that the General fund revenue estimates be increased by $700,000 as shown in Exhibit A to the attached resolution. To offset the increase to the revenues, it is further recommended that the Council’s contingency account be increased by a like amount which would bring it to $1,244,000. The contingency account has been at minimal levels over the past several years, thus this increase would bring it up to a more reasonable amount. The contingency account is used by Council to pay for any unbudgeted, unforseen expenses that occur throughout the year. In addition, it is Staff’s recommendation that Council transfer $500,000 from the General fund balance to the General Capital Construction (GCC) fund. This fund is used to pay for any unplanned, unbudgeted capital projects which arise during the year. In the past, Council has funded all or portions of projects such as the North Beach restrooms, capital requirements for compliance with the Americans with Disabilities Act, the Senior Center enclosure and numerous other projects with GCC money. Due to the current list of projects to be funded by GCC, there is no longer any available balance remaining. In order to give Council a funding source for capital projects as they arise, a transfer from the General fund is needed. This money would then remain unappropriated until additional Council action is taken. After the transfer, the General fund balance would total $10.8 million. EXHIBITS: 1. Resolution No. 4 5 -L5$26 increasing the revenue estimates and budget for the General fund by $700,000 and transferring $500,000 to the General Capital Construction fund from the General fund balance. Financial Status Report for Fiscal Year 1994-95. Financial Status Report for First Quarter Fiscal Year 1995-96. 2. 3. I 1 -_ 1 b 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 RESOLUTION NO. 95-326 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, INCREASING THE REVENUE ESTIMATES AND BUDGET FOR THE GENERAL FUND BY $700,000 AND TRANSFERRING $500,000 TO THE GENERAL CAPITAL CONSTRUCTION FUND 1 WHEREAS, revenues received in fiscal year 1994-95 in the General fund exceeded estimates by $2.1 million; and WHEREAS, revenues through the first quarter of the 1995-96 fiscal year have exceeded estimates by $389,000 or 6%; and WHEREAS, the Council’s contingency account has been at historically low levels over the past several years; and WHEREAS, staff recommends that the revenue estimates be increased by $700,000 for the 1995-96 fiscal year with an offsetting amount going to the contingency account; and - WHEREAS, the General Capital Construction (GCC) fund no longer has any available balance remaining; and WHEREAS, Council may need monies in the GCC fund to pay for unplanned or unbudgeted capital projects during the fiscal year; and WHEREAS, there are sufficient funds in the General fund balance to transfer to GCC without jeopardizing the operations of the General fund. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 1. That the above recitations are true and correct. Ill Ill I// . .i U 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 2. That the amounts reflected as "Revised Estimates" for fiscal year 1995-96 as shown in Exhibit A are hereby adopted as the budgeted revenues for 1995-96. That the budget for the contingency account in the General fund is hereby increased by $700,000. That a transfer of $500,000 from the General fund balance to the General Capital Construction fund is hereby authorized. 3. 4. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 14th day of NOVEMBER , 1995, by the following vote, to wit: AYES: NOES: None ABSENT: Council Member Finnila Council Members Lewis, Nygaard, Kulchin, Hall ATTEST: && MEN R. KUNDTZ, ssistant NZ, City City Clerk Clerk (SEAL) 1994-95 1995-96 ACTUAL CURRENT REVENUE EST1 MATE TAXES PROPERTY TAX $10,890,000 $10,900,000 SALES TAX 10,982,000 11,000,000 TRANSIENT TAX 3,252,000 3,200,000 PROP 172 SALES TAX 359,000 290,000 FRANCHISE TAX 1,466,000 1,360,000 TRANSFER TAX 269,000 220,000 TOTAL TAXES 27,218,000 26,970,000 LICENSES AND PERMITS CONSTRUCTION PERM ITS 644,000 400,000 BUSINESS LICENSES 1,246,000 1,250,000 LICENSE TAX-CONSTRUCTION 11 3,000 50,000 OTHER LICENSES & PERMITS 389,000 285,000 TOTAL LICENSES & PERMITS 2,392,000 1,985,000 STATE SUBVENTIONS VEHICLE LICENSE TAX 2,397,000 2,200,000 OTHER 234,000 200,000 TOTAL STATE SUBVENTIONS 2,631,000 2,400,000 CHARGES FOR SERVICES PLANNING FEES 803,000 725,000 BUILDING DEPT. FEES 483,000 375,000 ENGINEERING FEES 936,000 600,000 AMBULANCE FEES 353,000 350,000 RECREATION FEES 81 0,000 775,000 OTHER CHARGES OR FEES 594,000 535,000 TOTAL CHARGES FOR SERVICES 3,979,000 3,360,000 OTHER FINES AND FORFEITURES 263,000 240,000 INTEREST 1,312,000 1,200,000 INTERDEPARTMENTAL CHARGES 2,303,000 1,800,000 OTHER REVENUE SOURCES 687,000 250,000 PERS SURPLUS 0 400,000 OPERATING TRANS (250k worker’s comp) 265,000 250,000 TOTAL GENERAL FUND* $41,050,000 $38,855,000 * FY 1994-95 does not include $528,000 1995 -96 REVISED ESTIMATE INCREASE $10,900,000 0 11,200,000 200,000 320,000 30,000 3,200,000 0 1 ,425,000 65,000 250,000 30,000 27,295,000 325,000 600,000 200,000 1,250,000 0 100,000 50,000 285,000 0 2,235,000 250,000 2,300,000 100,000 200,000 0 2,500,000 100,000 725,000 0 400,000 25,000 600,000 0 350,000 0 775,000 0 535,000 0 3,385,000 25,000 240,000 0 1,200,000 0 1,800,000 0 250,000 0 400,000 0 250,000 0 $39,555,000 $700,000 from housing bond refunding. - EXHIBIT 2 0 a . Financial Status Report For the 1994-95 Fiscal Year Prepared by Finance Department INTRODUCTION The books have been closed for the 1995 fiscal year and the preparation and audit of the Comprehensive Annual Financial Statements (CAFR) is under way. Although, the financial statements are still subject to audit adjustments, they are not expected to vary materially from the numbers presented here. The General Fund ended 1994-95 with an available fund balance of $1 1.3 million which is $859,000 greater than expected. The increase was due to higher than anticipated revenues and spending that was under budget but higher than projected. Revenues totaled $41 million which is $2.1 million higher than estimated. Expenditures on a budgetary basis (excluding planned transfers) were $38.5 million, 3.4% higher than projected but 3.6% less than the budget of $39.9 million. GENERAL FUND UNRESERVED, UNDESIGNATED FUND BAIANCE FISCAL YEAR 1994-95 Actual on Proiected" Budget Basis Difference Unreserved, undesignated fund balance, 7/1/94 8,411,000 8,411,000 and carryforwards 885.000 885,000 Adjusted balance 9,296,000 9,296,000 Adjust for prior year encumbrances Revenues 38,992,000 41,050,000 2,058,000 5.3% Expenditures (Budget = $39.9 million) (37,231,000) (38,495,000) (1,264,000) 3.4% (535,000) 65,000 Other adjustments and transfers (600,000) Unreserved, undesignated 10,457.000 11,316,000 859,000 fund balance, 7/1/95 * As estimated in the 1995-96 Budget document Further detail about Carlsbad's General Fund revenues can be found in this report as well as an overview of the General Fund expenditures for the fiscal year ended June 30, 1995. In addition, the financial status of the Water and Sanitation Enterprises and the Redevelopment Agency will be discussed. The accompanying graph shows TOT revenues over the last 10 years after adjusting for the effect of the rate shows that total spending on lodging peaked in 1989-90, decreased for a recovering since that time. As of 1994-95, spending on lodging is at about the same level as in 1987-88. increases during that time period. It couple years and has been slowly Franchise taxes have been growing steadily over the years and show a 24% City of Carlsbad Transient Occupancy Taxes Last Ten Years Millions $2.5 *l ,/,,I I, ,, I, $2.0 L..L ...... 4 ...... + ___...' ..... 1 ....... 4 ...... --.... r .....-; --..... & ...-. , - ,I ,,,,I, ,,I,#,, /,,,IIII ,#, ,,,,Ij, ,I ,,,,I,,I./I ,I $1.5 #;;;;;;;;;! ..L ...... L... .L .....- _I ....... 2 ......- j -...... I ....--. L ....-.. i ...--.. L ..... i.- ;1 i::, I: $1 0 ...'..-... I ...... L ---...A ....... : ..__.__: ...-.. L ...... i ....... c ..-... i ...... i.. $0.5 I..; ...... ; _._... 4 ....... 1 ..__... I ....... 1 ....... I ....... ; ...-.. 1 ....... & ..---. +.. .,II,IIII /,,,,,/ #,I I >>3,:,,#1/1 ,/,,,,, ,,, I /,,,(,,,1/1 ,,,,,,,#/II ,,I ,,,,,,.#,I> ,I ,,,,,,,,,, ,,,,#,,I,IS ,, ,,,,I,, '!:::: l:, , , , . , I!!; so'0 85 86 87 88 89 90 91 92 93 94 95 Fiscal Year Adjusted Tor RateChanges 0 0 U Financial Status Report Page Three per year up to a maximum rate of 7.5%. The current rate is 4.5%, thus these are expected to continue to increase for a number of years to come. The increase from SDG&E is due simply to increases in their billings as our fees are based on a percentage of their revenue. Licenses and Permits Business licenses ended the year $1 52,000 ahead of last year’s results reflecting the recovering economy and growth in retail sales as well as continued collection efforts on delinquent accounts. Construction permits increased 76% and are discussed further under the Charges for Services category. State Subventions Vehicle license fees totaled $2.4 million for the year which was a $232,000 decline from the previous year. However, this was expected as some one-time revenue from the State was received in 1994 to partially offset property taxes taken by the State. The amount received in fiscal year 1994-95 was higher than expected and reflects an increase in the numbers and/or values of automobiles within the State. Charqes for Services The development related industries have rebounded this year beyond expectations. All of our development related revenues show significant increases over last year. Building permits issued this year total 760 of which 344 were for Villa Loma, a large affordable housing complex currently under construction. Excluding the Villa Lorna project, permits issued still show an increase over the previous year of 186, or 81%. Construction permit revenues, planning fees, and building plan check fees all increased by close to 75% over the previous year. Engineering fees were up 43%. Together these revenue sources brought in over $1.1 million more than in the previous year. Other Other revenues that declined this year compared to last year were interest revenues and interdepartmental charges. Interest was down 10.5% mainly due to declining interest rates and interdepartmental charges decreased 3.8% as a result of less general fund charges to other funds. Other revenue sources consist of various recurring and non-recurring receipts. Some of the non-recurring amounts included in this year’s total of $687,000 are: b b b b a one time transfer of accumulated fees paid by property owners on Zones 6, 11, and 12 totaling $1 48,000, a dividend from our group life insurance carrier for $62,000, a refund of $49,000 in sales tax collected for the San Diego Justice Facility which was later deemed unconstitutional, and $1 98,000 collected from property owners for various development studies. 0 0 I Financial Status Report Page Four Expenditures Total expenditures (excluding planned transfers) for fiscal year 1994-95 equaled $37.5 million. This was 3.7% less than the budget of $38.9 million. Expenditures have been calculated on a budgetary basis which means that it includes all amounts actually spent during the year plus any amounts to be spent which would be coming out of the 1994-95 appropriations (such as money encumbered at the end of the year and appropriations which are going to be continued into the next year). As seen in the chart on the following page, the 3.7% "savings" was not concentrated in any one department but rather was the result of the efforts by all departments and divisions to keep spending at a minimum. GENERAL FUND REVENUE COMPARISON FISCAL FISCAL YEAR YEAR DOLLAR PERCENT 1993-94 1994-95 CHANGE CHANGE Taxes 26,511,000 27,218,000 707,000 3% Licenses and permits 1,822,000 2,392,000 570,000 31 % Charges for services 3,070,000 3,979,000 909,000 30% Fines and forfeitures 231,000 263,000 32,000 14% State Subventions 2,863,000 2,631,000 (232,000) - 8% Interest 1,466,000 1,312,000 (154,000) -11% Interdepartmental charges 2,394,000 2,303,000 (91 ,000) -4% 0 t h er revenue sources 407,000 687,000 280,000 69% Transfers 0 265,000 265,000 N/A TOTAL REVENUES 38,764,000 41,050,000 2,286,000 6% - e 0 Page Five * Financial Status Report TAX REVENUE FY 1994 AND 1995 (IN MILLIONS) 12.9 ..................... 10.0 8.0 6.0 4.0 2.0 0.0 ..................... ..................... PROPERTY TAX SALES TAX TOT TAX _--. DEVELOPMENT FEE REVENUE FY 1994 AND 1995 (IN THOUSANDS) ....................... ................ ....................... .............. ............ mi OTHER REVENUE FY 1994 AND 1995 (IN THOUSANDS) 3500 3000 2500 2000 1500 I000 500 0 .................................... ........... ............. ........... +0*4 &@ q6*5 **46 q&4 & &+ +o* $6 $e+ @+ 4P .? 4-*' +@ .+ *4* &G s** 8 & FISCAL YEAR ACTUAL REVENUE REVENUES ESTIMATE REVENUE ~~URCE 1993-94 1994-95 GENERAL FUND h TAXES PROPERTY TAX $1 1,124,000 1 0,900,000 SALES TAX 10,565,000 10,700,000 SALES TAX-PROP 172 275,000 =,000 TRANSIENTTAX 3,153,000 3,100,000 FRANCHISETAX 1,183,000 1,340,000 TRANSFER TAX 21 1 ,000 220,000 TOTAL TAXES 26,511 ,000 26,550,000 UCENSESAND PERMITS CONSTRUCTION PERMITS 366,000 550,OOo BUSINESS LICENSES 1,~,000 1.21 2,000 LICENSE TAX-CONSTRUCTION 44000 75,000 OTHER LICENSES & PERMITS 31 8,000 =,000 TOTAL LICENSES & PERMITS 1,822.000 2,192,000 STATE SUBVENTIONS VEHICLE LICENSE FEES 2,629,000 2,073,000 OTHER =,000 199,Ooo TOTAL STATE SUBVENTIONS 2,863,000 2272,000 CHARGES FOR SEWICES PLANNING FEES 46wo0 721 ,OOO ENGINEERING FEES 656.m 743,000 AMBULANCE FEES 34wo0 339,000 BUILDING DEPT. FEES 275,000 434,000 RECREATION FEES 747,000 770,000 OTHER CHARGES OR FEES 589,000 543,000 TOTAL CHARGES FOR SERVICES 3,070,000 3,550,000 flNES AND FORFEITURES 231 ,000 244,000 INTEREST 1,466,ooo 1,177,000 I INTERDEPARTMENTAL CHARGES 2,394,000 2,157,000 OTHER REVENUE SOURCES 407,000 600,000 OPERATING TRANSFERS 0 250.000 TOTALGENERAL FUND 38,764,000 ~~,~,ooo OTHER SOURCES OF FUNDS: HOUSING BOND DEFEASANCE RESIDUAL EQUITY TRANSFER TOTAL GENERAL FUND REVENUE SOURCES 1994-95 ACTUAL ACTUAL COMPARED ACTUAL COMPARED REVENUE TOESTIMATE - TO ACTUAL 1994-95 DIFFERENCE AS% DIFFERENCE AS% 10,890,000 (10,000) -0.09% (234,000) -2.1% 10,982,000 282,000 2.64% 417,000 3.9% =,m 69,000 23.79% 84,000 30.5% 3,252,000 152,000 4.90% =,000 3.1% 1,466,000 126,Ooo 9.40% 283,000 23.9% =,000 49,000 2227% 58,000 27.5% 27.21 8.000 668,000 2.52% 707,000 2.7% 644,000 94,OOO 17.09% 278,000 76.0% 1,246,000 34,000 281% 152,000 13.9% 113,000 38,000 50.67% 69,000 156.8% =,000 34,Ooo 9.58% 71,000 22.3% 570,000 31.3% 2.392,ooo 200,OOO 9.12% 2397,000 324,000 15.63% (232,000) -8.8% 0 0.0% (232,000) -8.1% 234,000 35,000 17.59% 2.631.000 359,000 15.80% ~ 803,m 82,000 11.37% 343,000 74.6% =,000 193,000 25.98% 280,000 42.7% 14,000 4.13% 10,000 29% =,000 81 0,000 40,000 5.19% 63,000 8.4% 594,000 51,000 9.39% 5,WO 0.8% -,m 49,000 11.29% 208,000 75.6% 3,979,000 429,000 12.08% 909,000 29.6% 263,m 19,m 7.79% 32,000 13.9% 1,312,000 135,OOO 11.47% (154.000) -10.5% 2,303,000 146,000 6.77% (91,000) -3.8% 687,000 87,OOO 14.50% 280,000 68.8% 265,000 15,000 6.00% 265,000 NA 4i,050,000 2,058,000 5.28% 2,28~,000 5.9% 524,000 41'250 I 41.61 5.250 GENERALFUND U(PEND1TURESTATUS BY DEPARTMENT . FOR THEYEAR ENDING JUNE30,1995 ACTUALONA OMR %oMR BUDGET BUDGETARY (UNDER) (UNDER) DEPT DESCRIPTION M 1994-95 BASIS BUDGET BUDGET GENERAL GOVERNMENT CRY COU NClL 169,448 164,648 (4,8001 -28% CRYMANAGER 793,345 793,234 (W CRYCLERK 13W 136,435 (24ss) ArrORNEY 478,719 448,033 m686) FINANCE 1,058,137 1,002043 W,W TREASURER 101,959 66,376 @,m PURCHASING =,w 340,206 (18,851) HUMAN RESOURCES 862190 800,2l4 (61,97s) -7.W0 INFORMATION SYSTEMS 399,223 385,513 (13,710) -3.4% OTHEFUNON-DEPTlCONllNGENCY 1,2301238 1,101,191 (129,047) -10.5% TOTAL GENERAL GOVERNMENT 5,591 ,a6 5,236,893 (354,323) '-6.3% POUCE 8,971,356 8,692,611 (278;/45) FIFE 6,863313 6,857,808 @rn TOTAL PUBLIC SAFETI 15,834,669 15,550,419 mt=4 -0.0% -1.8% -6.4% -5.3% -35W0 -5.3% PUBUC SAF€IY -3.1% -0.1% -1 -8% COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT =,a 845,814 (1oS,ssO) -11.4% -26% -126% -6.7% -7a ENGIEEFIING 3,293,204 3,209,143 Wm) PLANNING 2185,272 1,909,761 rn311) BUILDING m= 730,149 (52801) TOTAL COMMUNITY DEYEOPMENT 7,215,930 6,a.m m.063) UBM 2,481,684 2=,= m755) TOTAL UBM & ARTS 2,755,285 2,662,411 Pa3741 -3.4% COMMUNIIY SEFMCES ADMIN. 649,452 641,414 (8,038) PARKS&RECFIEATK)N 31463,277 3,45%989 (4lm SlRE€E &FACRITIEs 3,364,763 3,206,472 (1WW TOTAL GENERAL FUND 38,874,592 37,451,465 (1,423,127) -3.7% OPERATING TRANSFERS 1 ,os2ooo 11043,394 (890s) -0.8% SUBTOTAL 39,926,592 38,4W,859 (1,431,733) -3.6% LIBRARY AND THE ARTS -3.696 CULTURALARTS 267,601 264,482 (9,119) COMMUNITY SERVICES -12% -0.1% 4.7% -23% - TOTALCOMMUNITY SERVICES 7.477.492 7.306.875 l170.617) 0 0 Y Financial Status Report Page Eight WATER ENTERPRISE Revenues Revenues for the Water District’s operating fund totalled $I 3.4 million which is $61 3,000 greater than last year and $984,000 over the estimate for the year. Water sales (a variable revenue source) totalled $9.9 million and are below last year by $99,000 or 1 %. The per unit rate for potable water was increased in July 1994; however, low water sales at year end caused the total revenue to decrease for the year. Fixed charges (or ready-to-serve charges) were also increased in July 1994 producing most of the increase in the Charges for Current Services category compared to the prior year. This category shows a 24% increase over last year’s receipts. Interest revenues also show an increase of $173,000 over the previous year due mainly to increases in the cash balances held during the year. ExDenses Expenses total $1 1.8 million, an decrease of $51,000 over last year’s expenses. The largest expense category, purchased water, totals $6.7 million which reflects a 1 % decline from last year similar to the decline seen in the water sales revenue. This again is due to the low water sales in the latter part of the year. For the year end, the Water Enterprise shows an operating income of $1.6 million with working capital of $6.9 million. REVENUES: WATER SALES FINES, FORFEITURES & PENALTIES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES: SAIARIES/BENEFITS 1,977,526 2,052,240 INTERDEPARTMENTAL SERVICES PURCHASED WATER OUTSIDE SERVICES/MAINTENANCE GENERAL OFFICE EXPENSE MATERIALS AND SUPPLIES DEPRECIATION CAPITAL OUTLAY MISCELLANEOUS EXPENSES ununEs TOTAL OPERATING EXPENSES OPERATING INCOME/LOSS 929,177 1,592,972 663,795 71.4 0 0 Financial Status Report Page Nine Y SANITATION ENTERPRISE Revenues Income to the Sanitation Enterprise for the 1994-95 fiscal year totals $5 million which is essentially the same as the previous year. Charges for current services were down $117,000 from last year while interest and other revenues have both increased by $72,000 and $51,000 respectively. The increase in the "Other" category is attributed to a reimbursement from SDG&E for a gas main deposit made through Encina Wastewater Authority. The refund amounted to $45,000. Expenses Expenses for the year total $4.3 million reflecting an increase of $288,000. The majority of the increase is due to the unusually low expense in 1993-94 for Encina Plant Services as an adjustment to prior period payments was made in that year. All other expenses are as expected. The Sanitation Enterprise fund shows an operating income of approximately $720,000 for the 1994-95 fiscal year with working capital of $2.9 million. REVENUES: CHARGES FOR CURRENTSERVICES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES: SALARIES/BENEFITS 489,449 (25,584) INTERDEPARTMENTAL SERWCES UTILITIES/RENTALS AND LEASES OUTSIDE SERVICES/MAINTENANCE DEPRECIATION ENCINA PLANT SERVICES 1,828,730 253,516 CAPITAL OUTLAY MISCELLANEOUS EXPENSES * MATERIALS AND SUPPLIES TOTAL OPERATING EXPENSES OPERATING I NCOME/LOSS W e - Financial Status Report Page Ten b REDEVELOPMENT AGENCY Revenues Revenues to the Agency totaled $1.3 million for the year ended June 30, 1995 which is $90,000 less than the estimate and $92,000 less than last year’s revenues. Property tax receipts are the reason for the decline, down $1 29,000, as assessed valuations within the redevelopment area fell by 14% for the 1994-95 fiscal year. Expenditures The Agency ended the fiscal year with expenditures of $1.6 million which was essentially equal to the budget. The last of the three State-mandated payments ($92,500) is included in the dept expense total of $908,000. Expenditures and operating transfers exceeded the Agency’s revenues by $250,000 in 1994-95 which was covered by the existing fund balances in the operating and debt service funds. The unreserved balances at June 30, 1995 total $1.6 million. 1 PROPERTY TAXES 1,288,269 1,158,957 (129,312) INTEREST MISCELLANEOUS REVENUES SALARIES/BENEFITS INTERDEPARTMENTAL SERVlCES RENTALS 81 LEASES DEBT EXPENSE OUTSIDE SERV/MAINT./MISC. TOTAL EXPENDITURES OPERATING TRANSFER TO CITY EXCESS OF REVENUES OVER EXPENDITURES - FY 94-95 (1) Total committed includes expenditures and encumbrances. ~ - EXHIBIT 3 0 s Financial Status Report September 30,1995 Prepared by Finance Department INTRODUCTION As of end of September, Carlsbad’s General Fund revenues total $6.8 million which is $389,000 or 6% higher than the estimate. The majority of the increase is due to a higher level of building activity than was anticipated. Both construction permits and other licenses and permits revenues are well ahead of plan and it is expected that they will remain so for the balance of the year. Further detail about Carlsbad’s General Fund revenues can be found in this report as well as an overview of the General Fund expenditures for the fiscal year through September 1995. In addition, the financial status of the Water and Sanitation Enterprises and the Redevelopment Agency will be discussed. GENERAL FUND Taxes Property tax revenues as of September 30, 1995 are ahead of budget expectations by 13%. However, as only 5% of the total property tax revenue for the year has been collected, it is too early to gain any meaningful information from the collections. According to the County Assessor, the assessed values for property within the City have increased less than 1% this year, thus no significant change is expected in property taxes. Sales taxes are over budget by $86,000 or 4% with one quarter of the sales tax revenue for the year collected. New legislation was recently signed into law by the governor which requires sales tax on leased automobiles to be allocated to the city in which the dealer (or lessor) is located. This is good news for Carlsbad as it is estimated that as much as 30% of new car sales are leases and taxes on auto sales make up 30% of our total sales taxes. Thus, it is expected that over time this change in the legislation could increase sales tax revenue in Carlsbad by as much as $450,000 a year. Transient occupancy taxes appear to be under budgeted estimates by $159,000. However, it is the result of the timing of receipt rather than actual decreases in the amounts collected by the hotels and motels. When timing differences are removed, TOT revenues for this year are slightly ahead of last year’s totals. Franchise taxes and transfer taxes both show receipts below estimates but this is not expected to be representative of the year. These revenue sources are expected to meet budget estimates by year end. 0 @ m - Financial Status Report Page Two Licenses and Permits Leading this category are receipts from construction permits, up by $230,000. Permits for 98 new residential dwelling units and 383,000 square feet of commercial/industriaI space were issued during the first quarter of the fiscal year. This is far in excess of what was expected for the first quarter of the year. Although it was believed that building activity would drop slightly from last year’s levels, no slow down has been seen thus far. The majority of the permits are being issued to builders in Zones 11 and 19 which are in the southern half of the City (Aviara and the Rancho Santa Fe Road areas). Also affected by the continued pace of the building industry are the other licenses and permits which include grading, plumbing, electrical and various other permits and licenses and the license tax on new construction. These categories are ahead of expectations by $92,000 and $34,000 respectively. If building activity remains at the same pace throughout the year, these categories would also be expected to exceed estimates. Business licenses are over estimates by $45,000 reflecting the recovering economy and growth in retail sales. Additionally, an active letter writing procedure followed by audits for those not responding to the letters has increased collections on delinquent accounts. State Subventions State subventions, which include the vehicle license fee and homeowners exemptions, are ahead of projections by 16% or $71,000. Although vehicle license fees are budgeted at the levels suggested by the State Controller’s office, last year’s receipts exceeded their expectations. If auto sales continue at last year’s levels, it is possible that more vehicle license fees will be collected than originally estimated. Charcles for Services So far for the year, planning fees and engineering fees are below expected levels by $37,000 and $46,000, respectively while the building department fees are above by $58,000. As planning and engineering fees tend to be collected rather erratically throughout the year, it is difficult to assess whether this situation will continue over time. Building fees reflect the high level of building activity in Carlsbad as also seen in the construction permit revenues. With such a strong first quarter, it is likely that these fees will exceed the current estimate for the year. Other All other revenues are as expected for this time of the year. No significant changes were noted. ExDenditures To date, $10.3 million has been expended or is committed to be spent in the General fund. This equals approximately 26% of the total $40 million budget leaving 74% available for the remainder of the year. If funds were spent evenly throughout the year, I!? 0 0 Financial Status Report Page Three & - we would expect to have 75% available as of the end of September. However, as many annual contracts are encumbered as of the beginning of the year, it is normal that the amount available at the end of the first quarter (74%) would be less than what would be expected with even spending (75%). The fiscal year 1995-96 budget includes the adopted budget of $38.9 million plus $724,000 in encumbrances and $400,000 in other amounts approved by Council to be carried from the 1994-95 budget into this year. . GENERAL FUND REVENUE COMPARISON THROUGH SEPTEMBER 30,1995 ESTIMATE ACTUAL THROUGH THROUGH DOLLAR PERCENT SEPT 1995 SEPT 1995 CHANGE CHANGE Taxes 3,741,000 3,668,000 (73,OW -2% Licenses and permits 296,000 697,000 401,000 1 35% Charges for services 91 9,000 886,000 (33,000) -4% Interest (estimated) 300,000 300,000 0 0% Interdepartmental charges 450,000 458,000 8,000 2% Other revenue sources 225,000 227,000 2,000 1% State Subventions 434,000 505,000 71,000 16% Fines and forfeitures 74,000 87,000 13,000 18% TOTAL REVENUES 6,439,000 6,828,000 389,000 6% 0 0 Page Four A * Financial Status Report TAX REVENUE BUDGET TO ACTUAL SEPTEMBER 1995 (IN WLLIONS) ........... mi ................... DEVELOPMENT FEE REVENUE BUDGET TO ACTUAL SEPTEMBER 1995 PROPERlY TAX SALES TAX TOT TAX ' (IN THOUSANDS) ................................. p OTHER REVENUE BUDGET TO ACTUAL SEPTEMBER 1995 (IN THOUSANDS) 600 500 400 300 200 100 0 UPIS% UP5% UP25W DOWN29 .......................................... ........................................... F) .............. ............ +0@ &-- q6@ *' 6' &* &e &* 5t ,.* $G6q cia9 $0 o&p +P #p .& & **4 8 *g5 . YEAR-TO- DATE ACTUAL CHANGE FROM EXPECTED REVENUE EXPECTED PERCENT BUDGET 9/30/95 BUDGET CHANGE 506,000 $574,000 68,000 13% SALES TAX 2,350,000 2,436,000 86,000 4% TRANSFER TAX 52,000 17,000 (35,000) -67% TRANSIENT TAX 659,000 500,000 (159,000) - 24% FRANCHISE TAX 174,000 141,000 (33,000) -19% TOTAL TAXES 3,741,000 3,668,000 (73.000) -2% 51,000 281,000 230,000 451 % BUSINESS LICENSES 183,000 228,000 45,000 25% LICENSE TAX-CONSTRUCTION 2,000 36,000 34,000 1700% TOTAL LICENSES & PERMITS 296,000 697,000 401,000 135% OTHER LICENSES & PERMITS 60,000 152,000 92,000 153% 430,000 505,000 75,000 17% OTHER 4,000 0 (4,000) - 100% TOTAL STATE SUBVENTIONS 434,000 505,000 71,000 16% PLANNING FEES 240,000 203,000 (37,000) -15% BUILDING DEPT. FEES 68,000 126,000 58,000 85% ENGINEERING FEES 164,000 118,000 (46,000) -28% AMBULANCE FEES 97,000 69,000 (28,000) -29% RECREATION FEES 245,000 258,000 13,000 5% OTHER CHARGES OR FEES 105,000 1 12,000 7,000 7% TOTAL CHARGES FOR SERVICE 91 9,000 886,000 (33,000) -4% 74,000 87,000 13,000 18% 300,000 300,000 0 0% 450,000 458,000 8,000 2% 225,000 227,000 2,000 1% 6.439.000 6.828.000 389,000 - 6% FISCAL YEAR ADOPTED BUDGET 1995-96 10,900,000 11,290,000 3,200,000 1,360,000 220,000 26,970,000 400,000 1,250,000 50,000 285,000 1,985,000 2,200,000 200,000 2,400,000 725,000 375,000 600,000 350,000 775,000 535,000 3,360,000 240,000 1,200,000 1,800,000 900,000 38.855.000 - I a 0 I .. Financial Status Report Page Six GENERAL FUND EXPENDITURESTATUS BY DEPARTMENT . TOTAL AVAILABLE % BUDGET COMMITIED* BALANCE AVAILABLE** DEPT DESCRIPTION FY 1995-96 9130195 9l30195 9130195 GENERAL GOVERNMENT CITY COU NClL 171,890 40,361 131,529 76.5% CITY MANAGER 795,090 186,445 608,645 76.6% AlTORNEY 485,477 107,914 377,563 77.8% FINANCE 1,055,058 204,119 850,939 80.7% TREASURER 1 14,820 8,758 106,062 92.4% PURCHASING 366,827 127,352 239,475 65.3% HUMAN RESOURCES 905,756 321,446 584,310 64.5% OTHEWNON-DEPT/CONTIffiENCY 2,223,604 964,800 1,258,804 56.6% TOTAL GENERAL GOVERNMENT 6,545,522 2,070,456 4,475,066 68.4% CITY CLERK 427,000 109,261 317,739 74.4% PUBLIC SAFETY POLICE 9,216,169 2,144,691 7,071,478 76.7% TOTAL PUBLIC SAFETY 16,189,917 3,803,214 12,386,703 76.5% FIRE 6,973,748 1,658,523 5,315,225 76.2% COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT 984,205 267,283 716,922 72.8% ENGINEERING 3,262,063 780,003 2,482,060 76.1 % BUILDING 823,947 281,866 542,081 65.8% TOTAL COMMUNITY DEVELOPMENT 7,184,034 1,868,062 5.31 5,972 74.0% PLANNING 2,113,819 538,910 1,574,909 74.5% LIBRARY AND THE ARTS LIBRARY 2,477,990 652,189 1,825,801 73.7% TOTAL LIBRARY 8 ARTS 2,748,299 727,527 2,020,772 73.5% CULTURAL ARTS 270,309 75,338 194,971 72.1% COMMUNITY SERVlCES COMMUNITY SERVICES ADMIN. 61 3,055 144,433 468,622 76.4% STREETS 81 FACILITIES 3,293,103 863,944 2,429,159 73.8% PARKS & RECREATION 3,445,041 835,817 2,609,224 75.7% TOTAL COMMUNITY SERVICES 7,351,199 1,844,194 5,507,005 74.9% TOTAL GENERAL FUND 40,018,971 10.31 3,453 29,705,518 74.2% I * Total committed includes expenditures & encumbrances. ** Amount available would be 75% if funds were spent evenly throughout the year. m e 0 ,1 1 Financial Status Report Page Seven WATER ENTERPRISE Revenues Revenues for the Water District’s operating fund total $3.7 million for the quarter ended September 30, 1995. This represents a decrease of $138,000 or 3.6% from the previous year due mainly to a decline in water sales. Water sales total $2.9 million for the quarter, a 6.5% decline in sales compared to the previous year’s first quarter. ExDenses Expenses total $2.8 million, an increase of $12,000 over last year’s expenses for the quarter. The largest expense category, purchased water, totals $1.6 million which reflects a 1.9% decline from last year. The decline is not as great as that seen in the water sales due to an increase in the cost of purchased water from the San Diego County Water Authority which was not passed on in the water rate to the District’s customers. No payments have been made yet for the MWD\CWA ready to serve charges, a new cost to the District imposed by the water providers, as the District has opted to pay semi-annually. These expenses will be paid in December and June of each year. As of September 30, the Water Enterprise shows an operating income of $900,000. REVENUES: WATER SALES 3,047,958 2,850,807 (197,151) (6.5) CHARGES FOR CURRENT SERVICES 2,562,800 FINES, FORFEITURES & PENALTIES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES: SALARIES/BENEFITS INTERDEPARTMENTAL SERVICES I PURCHASED WATER 1,659,446 1,627,245 (32,201) (1 -9) MWDICWA READY-TO-SERVE UTILITIES OUTSIDE SERVICES/MAINTENANCE GENERAL OFFICE EXPENSE MATERIALS AND SUPPLIES DEPRECIATION CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES OPERATING INCOME/LOSS 903,100 (150,381) (14.3) c 0 0 T A - Financial Status Report Page Eight SANITATION ENTERPRISE Revenues Income to the Sanitation Enterprise for the first quarter of 1995-96 totals $1.2 million. Revenues have not varied significantly from the previous year. ExDenses Expenses for the year total just over $1 million a 3.5% decrease from the previous year. Interdepartmental services declined 49%. This was expected as it was budgeted at about half of the previous year due to less planned usage of general fund services. Encina Plant Services show an increase reflecting an increased budget from Encina for the year. Capital outlay has also increased as a result of various pump station improvements done in the first quarter. . The Sanitation Enterprise fund shows an operating income of approximately $1 08,000 for the quarter ended September 30, 1995. REVENUES: CHARGES FOR CURRENTSERVICES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES: SALARIES/BENEFITS UTILITIES/RENTALS AND LEASES OUTSIDE SERVICES/MAJNTENANCE MATERIALS AND SUPPLIES DEPRECIATION CAPITAL OUTLAY MISCELLANEOUS EXPENSES INTERDEPARTMENTAL SERVICES 56,178 (54,724) (4 1 ENCINA PLANT SERVICES TOTAL OPERATING EXPENSES OPERATING INCOME/LOSS i 0 e 3 t Financial Status Report Page Eight REDEVELOPMENT AGENCY Revenues Revenues total $35,000 through September 1995. The Agency’s receives most of its revenues from property taxes which are not due until December. According to the City Assessor, property values in the Redevelopment Area have increased by 3% for the 1995-96 fiscal year, so it is expected that property taxes receipts will come in as estimated. Expenditures Expenditures through September total $872,000 and are on track with budget estimates. Amounts reported for rentals and leases include yearly encumbrances which skew the September figures resulting in a low percentage available (1 2.2%). Debt expense reflects the first annual installment of principal and interest for the tax allocation bonds. 4 PROPERTY TAXES INTEREST MISCELLANEOUS REVENUES SALARIES/BENEFITS INTERDEPARTMENTAL SERVICES RENTALS & LEASES DEBT EXPENSE OUTSIDE SERV/MAINT./MISC. TOTAL EXPENDITURES EXCESS OF REVENUES OVER EXPENDITURES (1) Total committed includes expenditures and encumbrances. (2) Amount available would be 75% if funds were spent evenly throughout me year.