HomeMy WebLinkAbout1996-03-26; City Council; 13565; 1994-95 annual financial reportsAB# /3,,565 TITLE: -
1994-95 ANNUAL FINANCIAL REPORTS MTG. 03/26/96
DEPT: FINANCE
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qz CITY OF CARLSBAD - AGENDA BILL
RECOMMENDED ACTION:
Accept the 1994-95 City of Carlsbad Comprehensive Annual Financial Report (CAFR), th
Single Audit Report, and the annual reports for the Parking Authority, the Public lmprovemer
Corporation, and the Redevelopment Agency.
ITEM EXPLANATION
Each year an independent auditor examines the City’s financial records. In fiscal year I99
95, Conrad & Associates completed its third year as the Cityk outside auditor. The aud
process requires several months of on-site examination, testing, and reconciliation (
appropriations, fixed assets, revenues and expenditures. The end result is an opinion on th fairness of the presentation of the financial data within the reports. As in the past, this ye:
we received an unqualified opinion on all of our annual reports. The City CAFR has receive
awards for excellence from the California Society of Municipal Finance Officers (CSMFC
since 1986.
The CAFR includes all entities for which the City exercises oversight responsibility whic
includes, but is not limited to, the authority to govern, manage, approve budgets and assun-
fiscal responsibility. Using this definition as a guide, the 1994-95 CAFR includes the financi
transactions of the following legal entities:
investments, bank statements, accounting records, warrants issued, payroll record!
The City of Carlsbad
The Carlsbad Municipal Water District The Parking Authority of the City of Carlsbad
The City of Carlsbad Public Improvement Corporation
The Carlsbad Redevelopment Agency
Due to various legal requirements and managerial needs, separate financial statements a
prepared for some of the above entities. These have been previously distributed to tt
respective governing bodies and additional copies are on file with the City Clerk and tl
Finance Department.
Financial Summary as of June 30, 1995
The reports show the financial condition of the City at June 30, 1995. The combined asse
of the City of Carlsbad are $397 million, with fixed assets comprising 44% and cash ai
investments at 34% of the total. Total City expenditures were $85 million, a decrease of $2
million from 1993-94. The City expended fewer funds because of lower construction costs (
several major capital projects, delays in contracting for street maintenance repairs, and low
debt service costs due to the Redevelopment bond refunding.
Combined City revenues totaled $99 million, up $8.6 million over 1993-94. The major factc
for the revenue gain are increased residential and commercial development, correspondil
developer fees for future road construction, gains in sales tax receipts, and escalating wai
revenues of $2.5 million over the previous year. Leading the rebound were sales ai rates. The general fund demonstrated recovery from the recession by recording increasi
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PAGE TWO OF AGENDA BILL NO. /<7,<5h 5
franchise taxes and development related fees: however, recessionary influences continue to affi
general fund property taxes and interest income receipts.
General fund undesignated reserves increased by $3.3 million due to higher than anticipa'
revenues and maintenance of 1993-94 levels of spending by general fund departments. Spec
revenue funds increased $1.1 million primarily because of developer payments into the afforda
housing fund and increases in gas tax and special benefit districts reserves. Capital proje undesignated reserves equaled $24 million and will be spent on projects in future years.
Working capital in the internal service funds (data processing, fleet management, and insurant
increased $570,000. The increase is primarily due to fleet's higher cash reserves for future vehi
purchases and lower general liability insurance claims at year-end.
Additional information regarding the City's operations and achievements for 1994-95 can be founc
the CAFR Letter of Transmittal.
FISCAL IMPACT:
The CAFR and the additional financial reports present the financial condition of the City and
related entities as of June 30, 1995. With the changing economic situation, the financial conditio1
the City also changes. In order to maintain a good understanding of the City's complex finan
picture, financial updates are given to Council on a monthly and as-needed basis.
EXHIBITS:
Audit reports are on file with the City Clerk and Finance Department.
1. Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995.
2. Parking Authority of the City of Carlsbad, Combined Financial Statements for fiscal year en
June 30,1995.
3. City of Carlsbad Public Improvement Corporation, Combined Financial Statements for fiscal 1
ended June 30,1995.
4. Carlsbad Redevelopment Agency, Combined Financial Statements for fiscal year ended June
1995.
5. Single Audit Report on Federal Assistance Programs for fiscal year ended June 30, 1995.
City Clerk I
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I CITY OF CARLSBAD
I CALIFORNIA
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I Carlsbad Vlllage Station
I COMPREHENSIVE
I ANNUAL
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1 FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE^^, 1995
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I 1200 Carlsbad Village Drive Carlsbad, CA 92008
I Comprehensive Annual 1 Financial Report
FlSCAL YEAR ENDED
JUNE 30, 2995
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Prepared by the Finance Department
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1995
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I Independent Auditors’ Report 2
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I TABLE OF CONTENTS
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INTRODUCTORY SECTION:
Table of Contents
Letter of Transmittal
Certificate of Award for Outstanding Financial Reporting,
California Municipal Finance Officers I 1
Location Map 2
List of City Officials 4
Organization Chart 2
FINANCIAL SECTION:
General Purpose Financial Statements:
0 Combined Balance Sheet - All Fund Types and Account Groups 4
0 Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual (Budgetary Basis) - All
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Governmental Fund Types 3
Retained Earnings - All Proprietary Fund Types
0 Combined Statement of Revenues, Expenses and Changes in
3
0 Combined Statement of Cash Flows - All Proprietary
Fund Types 3
0 Notes to General Purpose Financial Statements 3
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1995
TABLE OF CONTENTS (CONTINUED1
Paqe
Supplemental Data:
Governmental Funds:
General Fund:
0 Schedule of Revenues - Budget and Actual (Budgetary Basis) 72
74 0 Schedule of Expenditures - Budget and Actual (Budgetary Basis)
0 Comparative Schedule of Expenditures 75
0 Comparative Schedule of Revenues 76
Special Revenue Funds:
0 Combining Balance Sheet 80
0 Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 82
Combining Schedule of Revenues and Expenditures - Budget and
Actual (Budgetary Basis) 84
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Debt Service Funds:
0 Combining Balance Sheet 94
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 95
Redevelopment Bonds Debt Service Fund Schedule of Revenues and
Expenditures - Budget and Actual (Budgetary Basis)
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Capital Projects Funds:
0 Combining Balance Sheet 100
0 Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 102
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CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1995
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I e Schedule of General Fixed Assets by Function 1
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I Schedule of Annual Debt Service Requirements 1
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1 TABLE OF CONTENTS (CONTINUED)
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Proprietary Funds: I Enterprise Funds:
0 Combining Balance Sheet 1(
Retained Earnings 1(
0 Combining Statement of Cash Flows 1(
0 Combining Statement of Revenues, Expenses and Changes in
Internal Service Funds:
0 Combining Balance Sheet 1
Retained Earnings 1
e Combining Statement of Revenues, Expenses and Changes in
Fiduciary Funds:
Agency Funds:
9 combining Statement of Changes in Assets and Liabilities 1
Account Groups:
General Fixed Asset Account Group:
0 Schedule of Changes in General Fixed Assets by Function 1
0 Schedule of General Fixed Assets by Source 1
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CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30,1995
TABLE OF CONTENTS (CONTINUED)
Paqe
STAT1 ST1 CAL SECT1 ON :
(Not covered by Independent Auditors’ Report)
0 General Expenditures by Function, Last Ten Fiscal Years 130
0 General Revenues by Source, Last Ten Fiscal Years 132
0 Ratio of General Bonded Debt to Assessed Valuation and Net
Bonded Debt Per Capita, Last Ten Fiscal Years 134
0 Computation of Legal Debt Margin 135
0 Schedule of Direct and Overlapping Bonded Debt 136
0 Ratio of Annual Debt Service for General Bonded Debt to Total
Governmental Expenditures, Last Ten Fiscal Years
Water Enterprise - Revenue Bond Coverage, Last Ten Fiscal Years
137
0 138
0 Schedule of Assessed Valuation, Last Ten Fiscal Years 140
0 Construction and Business Activity, Last Ten Fiscal Years 142
0 143 Property Tax Levies and Collections, Last Ten Fiscal Years
Special Assessment Billings and Collections, College Boulevard
Assessment District, Last Nine Fiscal Years 144
0 Demographic Statistics, Last Ten Fiscal Years 145
0 Principal Employers, 1994-95 146
0 Principal Taxpayers, 1994-95 147
0 Top 30 Sales Tax Generators, 1994-95 148
0 Miscellaneous Statistical Information 149
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September 29, 1995
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD
Carlsbad, California
1994-95 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETER OF TRANSMllTAL
We are pleased to present the 1994-95 Comprehensive Annual Financial Report of the City (
Carlsbad to the City Council and the City Manager. This report includes financial statements (
Carisbad, the Carlsbad Public Improvement Corporation, the Carlsbad Redevelopment Agenc
and the Carlsbad Municipal Water District, as well as the opinion of our independent auditoc
Conrad & Associates. The completion of this independent audit is an important part of the tot(
financial management program for the City of Carlsbad.
The information found in this report is provided by management to the Council and the pub1
to assist those interested in understanding the fiscal condition of the City as of June 30, 199!
Responsibility for both the accuracy of the data, and the completeness and fairness of tt
presentation, including all disclosures, rests with the City. To the best of our knowledge ar
belief, the enclosed data are accurate in all material respects and are reported in a mannc
designed to present fairly the financial position and results of operations of the various funds ar
account groups of the City of Carlsbad. All disclosures necessary to enable the reader to ga
an understanding of the government’s financial activities have been included.
the City, the Housing Authority of the City of Carlsbad, the Parking Authority of the City (
Background
Carlsbad is located about 35 miles north of the City of San Diego on the southern Califarni
coast. The City is governed by a five member City Council under the Council/Manager form (
government. Carlsbad is a general law city incorporated in 1952. The City covers about 4
square miles and has a population of 68,100. Industries in the area include a major region,
shopping center, 16 auto dealers, 24 hotels offering 1,860 rooms for tourist lodging, high tecl
multimedia and biomedical businesses, electronics, golf apparel and equipment manufacturer:
several business and light industry parks, and numerous land developers building single an
multi-family housing in a variety of community settings.
Services Provided by the Citv
The City provides the full range of services normally associated with a municipality includir
police, fire, parks and recreation, library, planning and zoning, building and engineering, varioi
maintenance services and administration. The City provides water services through the Carlsbc
Municipal Water District, a subsidiary district of the City. City Council serves as the Board I
Directors for the Carlsbad Municipal Water District. Solid waste collection is provided throus I a franchise arrangement with a local refuse collection service.
1200 Carlsbad Village Drive Carisbad, CA 92008-1 989 (61 9) 434-2867 FAX (61 9) 434-81 6
In addition to the usual City services, Carlsbad offers a variety of programs to help local residents
and businesses. The City operates a redevelopment agency that encompasses 0.4 square miles
of the downtown area, as well as a housing authority that provides 475 low and moderate income
families with housing assistance. The City’s literacy program, funded by the General Fund,
provides adult education to local area residents. Older Carlsbad residents receive assistance
through the City’s senior citizen programs. Also, the City provides major support for the
Convention and Visitors Bureau operated in cooperation with the Carlsbad Chamber of
Commerce. The City supports various service agencies such as the Women’s Resource Center,
YMCA and other agencies providing social services to Carlsbad residents. Finally, the City has
reserved over $300,000 for support of the arts, art programs, and the purchase of works of art.
Siqnificant Events and Accomplishments
During 1994-95 the City experienced many significant events and accomplishments that may not
be evident from a review of the financial statements. Some of the more important events are
shown below.
Balanced Budget - One of the most significant accomplishments was successfully balancing the
General Fund budget. Throughout the recession, planned and actual General Fund expenditures
were matched with declining revenues. As development dipped, property values tumbled, and
revenues declined, General Fund revenues and expenditures were continually monitored and
reported to Council. Staff levels were frozen, only critical personnel vacancies were filled and
maintenance and operating expenses were lowered. Through these efforts the General Fund
undesignated fund balance remained fairly constant throughout the recession.
As 1994-95 began, the State was in the deepest recession since the 19303, and the State
legislature had not yet adopted its budget. Given the recent State history of City revenue take-
aways, City Council was cautious about expanded or new programs and maintained the budget
at 1993-94 levels. As the year progressed, it became apparent that the State was recovering
from the recession and the City saw a large increase in residential and non-residential
construction. Development related revenues coupled with sales tax receipts brought General
Fund revenues above pre-recession levels. With the unexpected boost in 1994-95 revenues, the
unreserved General Fund balance has increased to $1 1.8 million at June 30, 1995.
Economic Development - The City’s economic development program goal is to achieve
economic growth and stability for the City through proactive efforts to attract targeted industries
to provide a strong economic base. Targeted companies include biotech industries, research
in finance and international trade. Staff continued work on a strategic plan, with much of the fort
in 1994-95 related to attracting multimedia and biotech industries.
During 1994-95, the City authorized the creation of the Industrial Development Authority (IDA) of
Carlsbad and financed two bond issues to fund construction of biotech and light manufacuturing
facilities in the City. The new businesses will add new employees to the community and will
result in substantial public benefits. The IDA provides tax-exempt industrial development revenue
bonds to finance eligible capital facilities for small manufacturing businesses. Qualifying projects
for new or expanding business may include land purchase, facility rehabilitation, and purchase
or lease of equipment.
and development facilities, light manufacturing, communication firms, and companies specializing
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Awards for Excellence - In 1994-95 the League of California Cities awarded the City three Helc
Putnam Awards for Excellence. This award recognizes achievements and unique contributioi
made by California cities to their residents and business community. Carlsbad received tl
awards for programs in the areas of environmental quality, economic and commun
development, and enhancing diversity in the workplace and community.
Environmental quality was recognized for a plan to provide habitat for endangered species wh
also allowing development of a master planned project and construction of a major road. TI
economic and community development award recognized the City and State cooperati
partnership, together with other local agencies and the public and private sector, to promc
Carlsbad for the Leg0 theme park. After a nationwide competition, Carlsbad was selected for tl
first Leg0 theme park in the nation. A grand prize award was granted for enhancing diversity
the workplace and community through the special library service to the City’s Spanish-speakii
vehicle regulations and many other issues while providing children a positive, safe learnii
environment.
Construction of Capital Projects - The City’s aggressive capital building program continued
1994-95 with an outlay of approximately $13 million. Lower development revenues during ti
recession led to project phasing and moving some planned projects to future years. During ti
last ten years, Carlsbad expended more than $135 million for capital projects including maj
streets, community parks, a senior center, a civic facility for police and fire, fire stations, mc
library, and sea wall and bluff protection. This dedication to improving the infrastructure of tl
City is expected to continue into the foreseeable future as the City implements its long ran!
capital improvement program.
Several major road construction projects were completed in 1994-95 including Palomar Airpc
Road East, a vital circulation link to northern San Diego County and a joint effort of Carlsbad ai
two neighboring cities.
Golf Course Land Acquisition - The City selected a site in the industrial corridor for a municir
golf course during 1994-95. The site consists of 250 acres of vacant land directly south oi
future regional park. The golf course will be centrally located and directly accessible to ma.
roads and the interstate freeway. Development plans are expected to be finalized in 19954
with completion scheduled for 1999.
Wetlands Restoration - Batiquitos Lagoon, one of the City’s three lagoons to the Pacific Ocez
began its wetlands restoration in 1994. The three year wetland restoration project will dredge t
lagoon and restore fish and wildlife habitat. A channel and off-shore jetties are being construct
to restore full tidal flushing. Some newly-built nesting areas for various species of birds ha
already reported higher populations of threatened wildlife. As mitigation for its recent expansic
the Port of Los Angeles is completely funding the $30 million construction project.
Affordable Housing - Villa Loma, an affordable housing project, will complete construction
1996. Villa Loma provides 344 housing units, some with ocean views, which are affordable
low and very low income households. Funding sources joined private financing \hi
loans. Villa Lorna met the affordable housing requirement of one of the City’s major la
developers and may be used to satisfy the affordable housing requirements of other off-:
developers.
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residents. The Centro de lnformacion provides information about city services, health care, mol
Redevelopment Agency tax increment funds and federal community development block gr;
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Financial Statement Format
This report is designed to provide both summarized and detailed information on the operation
of each of the City's funds. The report is organized as follows:
Financial Section - This section contains the combined or summarized financial
statements for all funds as well as the notes to the financial
statements.
This section provides more detailed information on the activity
within each fund including revenues, expenditures, changes in
fund balances, comparisons to budget figures and other related
data.
Supplemental Data -
Statistical Information - This section provides data on the City's fiscal activity over the
past ten years including revenues, expenditures, debt, assessed
value, and demographic information.
Accountinq Svstem and Budqetary Control
The City's accounting system is designed around a few basic principles.
(1) The City is not one single entity. It is the total of many entities, each with its separate
function and legal restrictions on the use of resources. In the private sector, a corporation
may have many "subsidiaries" which make up the parent corporation. In the public sector,
a city government may have a variety of "funds" that provide the basis for separately
recording the financial data related to a specific activity. A fund is an accounting entity with
a complete set of self-balancing accounting records. Each fund has been established
because of some restriction on the use of resources received by that fund. This report
includes the transactions of all entities over which the City Council of the City of Carlsbad
has authority (as defined by the Governmental Accounting Standards Board).
(2) The City's accounting system operates on a modified accrual basis for all governmental and
agency type funds. Governmental funds include the General, Special Revenue, Debt
Service and Capital Projects Funds. A modified accrual system is one where a) revenues
are recorded when received in cash; b) revenues are accrued when they are both
measurable and collectable within the accounting period or soon enough after the end of
the period to pay liabilities of the period; and c) expenditures, other than interest or long-
term debt, are recorded when liabilities are incurred.
The proprietary fund types (the Enterprise and Internal Service Funds) use the accrual
method of accounting. Revenues and expenses are recorded when earned or incurred,
respectively.
Internal controls exist within the accounting system to ensure safety of assets from
misappropriation, unauthorized use or disposition, and to maintain the accuracy of financial
management practices based on the cost/benefit of the controls imposed. The cost of a
(3)
(4)
record keeping, These internal controls must be established consistent with sound
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control should not be excessive in relation to its benefit as viewed by City managemer
The internal controls in existence within the City’s system are sufficient to ensure in i
material aspects both the safety of the City’s assets and the accuracy of the financial reco I keeping system.
(5) Budgetary control is maintained through monthly reports on all revenue and expenditu
accounts as well as quarterly reports summarizing the financial position of the City. Tt
City Council has the authority to control the budget through adoption of a formal budg
at the beginning of each year and by amending the budget as necessary through the ye;
Expenditures should not exceed budgeted figures. All appropriations expire at year er
unless specifically carried into the new fiscal year by Council action. The Carlsb:
for the City Manager showing estimated revenues and expenditures. Municipal Code requires that the Financial Management Director annually prepare a bud0
Total Citv Operations
Throughout most of its history, Carlsbad has had the benefit of working with revenues sufficie
to meet anticipated expenditures. During the 1980’s, the City experienced growth and a stead
increasing revenue stream. The 1990’s brought about major changes in the City’s economil
and budgeting strategies.
Beginning in 1990-91, Carlsbad saw its revenues slow as a very deep recession took hold
California. Property values fell, sales taxes dipped and development all but stopped through0
much of the State. Revenues stopped growing and state legislation resulted in new mandato
expenditures as well as the loss of revenues. During fiscal years 1993 and 1994, the State to(
over $2.5 million in property taxes from the City of Carlsbad. This is a permanent reduction
Carlsbad has made every effort to maintain service levels through the deferral of projects ar
management of vacant staff positions.
In 1994-95, the City demonstrated recovery from the recession. Revenues for 1994-95 totalt
$98.8 million, an increase of $8.5 million or 9.5% more than last year’s total of $90.3 million. TI
major factors for the revenue gain are increased residential and commercial developmei
corresponding developer fees for future road construction, gains in sale tax receipts, ai
revenues and a loss from which the City has not yet recovered. Over the past five yea1
I escalating water rates.
During 1994-95 the City staff of 482 full-time employees provided a complete range of C
services to the 68,100 residents and many businesses in Carlsbad. Spending on all C
programs totaled $85 million, a decrease of $2.5 million from 1993-94. The City expended fen
funds because of lower construction costs on several major capital projects, delays in contractii
for street maintenance repairs, and lower debt service costs due to a Redevelopment bo1
refunding .
Carlsbad is entering 1995-96 in a fiscally sound position due to City Council’s rapid response
lower revenues during the recession. The general outlook for the next five years will
challenging, matching slower tax base growth with financial requirements to meet the dema
for services.
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The following report summarizes the revenues and expenditures (or expenses) for the City of
Carlsbad for the fiscal year ended June 30, 1995.
Revenue from All Fund Tvpes
(in thousands)
1994-95 over %
1994-95 1993-94 lunder) 1993-94 Chanqe
General Fund $41,256 $38:763 $2,493 6.4%
Special Revenue Funds 8,017 7,346 671 9.1
Debt Service Funds 3,070 2,197 873 39.7
Capital Projects Funds 17,426 13,933 3,493 25.1
Enterprise Funds’ 22,337 21,231 1,106 5.2
Internal Service Funds’ 6,707 6,789 (82) (2.2)
TOTAL REVENUES $98.81 3 $90,259 $8,554 9.5% -
(’) Includes operating and non-operating revenues
Expenditures (or Expenses) All Fund Types
(in thousands)
1994-95 over 76
1994-95 1993-94 (under) 1993-94 Chanqe
General Fund $36,410 $36,383 $ 27 0.1 %
Special Revenue Funds 6,460 7,260 (800) (1 1 .O)
Debt Service Funds 4,296 5,220 (924) (1 7.7)
Capital Projects Funds 13,114 13,805 (691 1 (5.0)
Enterprise Funds‘ 19,498 1 9,094 404 21
hternal Service Funds’ 5,682 6,218 (536) J8.6J
TOTAL EXPENDITURES $85,460 $87,980 $(2,520) E)% -
(’) Includes operating and non-operating expenses
General Governmental Functions
The General Governmental function includes the operations of the General, Special Revenue,
Debt Service and Capital Projects funds. During 1994-95, revenue from all Governmental funds
totaled $69.8 million, an increase of $7.6 million from 1993-94; expenditures totaled $60.3 million,
down $2.4 million from last year. A brief look at these numbers on a fund-by-fund basis is shown
on the following pages.
General Fund
The City’s General Fund is used to record all revenues and expenditures not specifically
transient occupancy tax (TOT), licenses and permits, and charges for services. Categories of
expenditures include police and fire services, libraries, parks, street maintenance, and
ad ministrat ive functions.
restricted by law or Council policy. Major sources of revenue include property tax, sales tax,
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The following table summarizes General Fund revenues by major category for 1994-95 and 199:
94:
General Fund Revenues
(in thousands)
1994-95 over %
1994-95 1993-94 {under) 1993-94 Change
Taxes $27,176 $26,511 $ 665 2.5%
Licenses & Permits 2,392 1,822 570 31.3
Charges for Services 3,979 3,070 909 29.6
Fines & Forfeitures 263 23 1 32 13.9
Interest Income 1,312 1,466 (1 54) (1 0.5) Other 351 4 2,801 71 3 25.5
TOTAL $41,256 $38,763 $2,493 6.4%
In 1994-95 the City of Carlsbad demonstrated recovery from the recession by recording a $2.
million increase in General Fund revenues. General Fund revenues were originally budgeted i
$37.9 million, revised upward to $39 million, and at June 30, 1995 receipts totaled $41.2 millioi
Leading the rebound were sales and franchise taxes and development related fees; with proper
taxes, vehicle license fees, and interest income still lagging. Major revenue categories are i
follows:
State Subventions 2,620 2,862 (242) (8.5)
0 Property Tax Revenue - $10.9 million
Property taxes decreased $234,000, a 2% decrease from the amount collected
1993-94. The decline is attributable to the general decline in real estate values in Si
Diego County as well as in most of the State. The City experienced a second ye<
of decreased net assessed valuation. Property valuation declined to $5.8 billion
1994-95, a 2.9% decrease from last year’s $6 billion. Declining property values ar
reassessment of vacant land and commercial/industriaI property were reflected
reduced property tax collections.
Sales Tax Revenue - $1 1.4 million
Sales taxes have continued to climb since the recessionary low point in 1992 ar
increased $526,000 over 1993-94. The rise in taxable receipts is due to increasc
consumer spending with the recovering economy, led by vehicle sales and leasir
and light industry sales. Of the top 30 sales tax generators in Carlsbad, 21 a
represented in the auto and light industries categories. Light industry covers reni
businesses and light manufacturing such as golf industries, print shops and to
suppliers. A portion of the sales tax growth is from additional Proposition 172 salc
taxes which are used to support public safety programs.
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Interest Income - $1.3 million
Revenue generated by the City’s investments declined $1 54,000 from 1993-94 wi‘
the decrease due to lower yields on investments.
Other Revenue - $3.5 million
$1 11,000 in sales tax and life insurance refunds, and $524,000 generated from tt
defeasance of mortgage revenue bonds. The bond funds were revenue to tt
General Fund with a corresponding $524,000 reserve established by Council fc
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The $713,000 increase in other revenue is due to various one-time receipts includir
II future affordable housing projects.
Total General Fund expenditures are summarized in the following table:
General Fund Expenditures
(in thousands)
1994-95 over %
Cateqorv 1994-95 1993-94 lunder) 1993-94 Chanqe
General Government $ 4,917 $4,641 $276 5.9%
Public Safety 15,491 15,747 (256) (1.6)
Community Development 6,378 6,314 64 1 .o
Library and the Arts 2,653 2,682 (29) (1.1)
Community Services 6,971 6,999 (28) (0.4)
TOTAL $36,410 $36,383 m 0.1% -
The City continued its adaptation to the recession by budgeting for fewer expenditures. Tt
1994-95 budget policy allowed no new positions, programs or services and departments we
required to absorb personnel step increases and other inflationary increases. During the ye2
replacement of employees as vacancies occurred was closely monitored.
Through efforts in every department, the City was able to hold its General Fund expenditurc
down to $36.4 million. This equates to $27,000 increase over the 1993-94 expenditures and ov
a 7% reduction in General Fund expenses incurred at the beginning of the recession. Significa
changes in departmental expenditures were as follows:
R
0 General Government
Spending in general government and administrative programs increased by $276,0(
due to filling City Attorney staff vacancies, higher legal costs in the human resourcc
department, increased Citywide training programs, and refunds of development fel
associated with the golf course land purchase.
0 Public Safetv
Spending on public safety programs totaled $1 5.5 million, down $256,000 from 199
94. Temporary staffing vacancies in Police field operations and investigatio
generated a $64,000 reduction. The Fire Department’s reorganization, upon earli
staff retirement, allowed $1 93,000 in reduced expenditures. Throughout ti
recession, in spite of lower general fund revenues, there has been no decrease in tl
level of service provided by the City’s public safety departments.
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Special Revenue Funds
The City’s Special Revenue Funds, which account for the collection and use of special or
restricted revenues, received $8 million in total revenue in 1994-95. This is an increase of
$671,000 or 9% over last year. The increase in intergovernmental revenues is attributable to
additional federal funding of the low and moderate income housing programs, new habitat
primarily due to increased collections of affordable housing inclusionary development fees.
preservation federal grants, and additional library state grant funds, Charges for services rose
Special Revenue Funds
Revenues
(in thousands)
1994-95 over %
Cateqorv 1994-95 1993-94 (under) 1993-94 Chanqe
Taxes $1,490 $1,508 $ (18) (1.2)%
Intergovernmental 3,432 3,262 170 5.2
Charges for Services 2,266 1,930 336 17.4
Interest Income 485 433 52 12.0
Other 344 21 3 131 61.5
TOTAL $8,017 $7,346 $671 9.1% - -
Expenditures from the Special Revenue Funds support a wide variety of programs and projects.
Some of the major uses of funds include:
0 Community service programs such as street lighting, landscaping services for street
trees and median maintenance. Major street maintenance programs include street
sweeping, sidewalk repairs, and street overlay sealants.
Cultural programs, including grants from the California Library Services Act and
California Arts Council, and the Civic Arts program.
Special programs such as the Police Asset Forfeiture program, Bilingual Library and
Adult Literacy programs, and habitat preservation programs.
Welfare programs such as the HUD-sponsored Carlsbad Housing Authority rental
assistance program and Senior Nutrition program.
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Special Revenue Funds
Exbenditures (in thousands)
1994-95 Over %
Cateqow 1994-95 1993-94 Junder) 1993-94 Chanqe
Public Safety $ 425 $ 605 $(I 80) (29.8) %
Housing & Welfare 3,310 3,135 175 5.6
Community Services 2,218 3,000 (782) (26.1 )
Library & Arts 507 520 (1 3) (2.5)
TOTAL $6,460 $7,260 $(800) (1 1 .O)%
Spending in Special Revenue Funds totaled $6.5 million in 1994-95, an decrease of $800,01
from 1993-94. Fewer capital equipment purchases utilizing Police Asset Forfeiture fun(
decreased public safety expenditures. Increased HUD housing allocations are shown und
Housing and Welfare. Community Service expenditures declined due to delayed stre
to the General Fund.
maintenance contracts utilizing gas tax funds and transferring street maintenance personnel COI
Debt Service Funds
The City’s Debt Service funds record the payment of interest and principal on the current portic
of outstanding debt. At June 30, 1995, the total debt payable from non-enterprise source
excluding obligations under capital leases, was $31 million. City debt is comprised of Parkii
Authority and Hosp Grove Certificates of Participation, College Boulevard 191 5 Act Assessme
District bonds, Redevelopment Tax Allocation bonds, and HUD loan for the Villa Lorna affordat
housing project. No general obligation bonds are outstanding at June 30, 1995.
Debt Service Funds
Revenues
(in thousands)
1994-95 over %
Cateaorv 1904-95 1993-04 lunder) 1903-04 Chanae
Taxes $2,669 $1,976 $693 35.1%
Interest 40 1 221 180 81.4
Debt service revenues totaled $3.1 million, an increase of $873,000 over 1992-93. Delinqur
College Boulevard special assessments were brought current when the City purchased la
within the bond district for a municipal golf course. Interest associated with the delinquency w
also paid during the purchase.
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Debt Service Funds
Expenditures
(in thousands)
1994-95 over %
Cateqow 1994-95 1993-94 lunder) 1993-94 Chanqe
Principal $1,600 $ 765 $ 835 109.2%
Interest 2,604 2:163 44 1 20.4
Other 92 2,292 (2,200) 196.01
TOTAL $4,296 $5,220
Debt related expenditures declined $942,000 in 1994-95. Higher principal payments resulted
from calling all outstanding 1981 Parking Authority bonds by utilizing General Fund reserves.
Upon payment of the final $1 25,000 1968 Parking bond in October 1995, the General Fund will
have no outstanding Parking Authority bonds. Higher interest costs are associated with
beginning payment of the 1993 Redevelopment Tax Increment bonds. In 1993-94, the other
category reflects bond costs and funds placed with an escrow agent during the 1988
Redevelopment bond refunding. In 1994-95 only the mandated Redevelopment Agency payment
to the State is shown as other debt service expenditures.
$ (942) (1 7.71%
Capital Proiects
A capital project fund is one that accounts for the receipt and disbursement of monies that are
restricted for the acquisition or construction of capital facilities (other than those financed by
enterprise funds). Capital projects funds for the City of Carlsbad include those supported by the
City’s public facilities fees, community facilities district (Mello-Roos) taxes, park in-lieu (park
development) fees, drainage fees, traffic impact fees, bridge and thoroughfare district and other
development fees, county sales tax funds, and general funds earmarked for capital purposes in
the Capital Construction Fund. The capital projects supported by the City’s Redevelopment
Agency are also included in this group.
Capital Projects Funds
Revenues
(in thousands)
1994-95 Over %
Cateqorv 1994-95 1993-94 {under) 1993-94 Chanae
Taxes $ 5,791 $ 2,043 $3,248 159.0%
Intergovernmental 4,116 4,728 (61 2) (12.9)
Interest 2,218 1,876 342 18.2
Other 2,227 1,104 1,123 101.7
TOTAL $1 7,426 $1 3.933 $3,493 25.1 %
Collection of current and delinquent community facilities district (Mello-Roos) special taxes and
the City’s higher rate of development spurred the increase in capital project funds revenues. In
the other category are park fees generated for the City’s industrial corridor.
Charges for Services 3,574 4,182 (608) (1 4.5)
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Capital Projects Funds
Expenditures
(in thousands)
1994-95 over %
Cateaow 1994-95 1993-94 lunder) 1993-94 Chanqe
General Government $ 954 $ 872 $ 82 9.4%
Capital Projects 12,160 12,933 (773) a
TOTAL $13,114 $1 3,805 $/691) (5% -
Spending on capital projects totaled $13.1 million, declining 5% from 1993-94. Capital projec
expenditures fell since several major capital projects were completed in the prior year and tl
cost of capital construction remains low. During the last ten years, Carlsbad expended mo
than $1 35 million for capital projects including major streets, community parks, a senior cent(
a civic facility for police and fire, fire stations, main library, and sea wall and bluff protectio
Projects planned for 1994-95 will continue this trend with $23 million of new capital projec
budgeted in the new year. The City Council continues to set a high priority on the constructic
of quality infrastructure improvements.
Some of the key capital projects under construction or completed during this year include:
0 Palomar Airport Road East and El Camino Real - Construction was completed on tk
vital circulation link in 1994-95. The project includes intersection improvements, roi
widening, bicycle lanes, and waterline expansion. These improvements upgrade
major circulation system through the industrial-commercial corridor and are a joi
effort of Carlsbad and the neighboring cities of Vista and San Marcos.
Freewav lnterchanqes - Expansion of the three Interstate 5 freeway interchanges v
provide improved circulation at critical connection points to City streets. The Palorr
Airport Road/l-5 interchange, built in cooperation with the state transportation agen
(CALTRANS), was completed in 1993. The Poinsettia Avenue interchange beg,
construction during 1994-95 and is expected to be completed by December 19E
La Costa Avenue is the final freeway interchange scheduled for improvement and v
begin construction in mid-1 996.
Batiquitos Laaoon - Restoration of the wetlands at Batiquitos Lagoon continu
lagoon and restore fish and wildlife habitat. A channel and off-shore jetties is bei
constructed to restore full tidal flushing. Some newly-built nesting areas for vario
species of birds have already reported higher populations of threatened wildlife. T
$30 million project is completely funded by the Port of Los Angeles as mitigation
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throughout 1994-95, The three year wetland restoration project will dredge t
I its recent expansion.
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0 Street Improvements - Improvements to streets, highways, sidewalks, and traffic
signals continues in the City of Carlsbad. Several east-west bridges along the
coastline began construction in 1994-95. Funding from the Port of Los Angeles and
federal bridge and highway grants allowed improvements to this scenic portion of
south Carlsbad.
Poinsettia Park - The first phase of Poinsettia Park began construction in 1995. The
community park in the City’s south-west quadrant will be built in three phases over
several years, with Phase Ill encompassing the community center. Phase I includes
grading the entire site, interior roads, ball and soccer fields.
Villaae RedeveloDment Area - Redevelopment in the Village area of Carlsbad
continued in 1994-95 with the land purchase for the Roosevelt block project. In
conjunction with private development, the project will expand economic development
and achieve blight elimination within the Village Redevelopment area. In addition to
land acquisition, a public parking structure and pre-development costs may be
financed with current Redevelopment bond funding.
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Enterprise Operations
The City of Carlsbad manages water, sewer, solid waste, and the proposed golf course as
Enterprise Fund operations. An enterprise fund is one where most or all of the costs involved
are supported by user fees. Within these funds the City uses many of the accounting practices
applicable to commercial business including the recording of depreciation on fixed assets and
the allocation of overhead costs from support services. User fees are set on an annual basis to
cover both operating costs and debt service needs.
The Carlsbad Municipal Water District (CMWD), established as a subsidiary district to the City in
January 1990, is included as an enterprise fund of the City. CMWD and City operations were
merged in 1991 -92, with all district positions joining City employment.
Enterprise Funds
Total Operatina and Non-ODeratinq Revenues
(in thousands)
1994-95 over %
Cateaow 1994-95 1993-94 lunder) 1993-94 Chanqe
CMWD $1 591 2 $15,189 $ 723 4.8%
Golf Course 109 106 3 2.8
Sewer 6,142 5,814 328 5,6
42.6 Solid Waste 174 122 52
TOTAL $22,337 $21,231 $1 ,I 06 - 5.2%
Revenue in the enterprise funds totaled $22.3 million, up $1.1 million over 1993-94. Most of the
increase is due to an increase in the water rate necessitated by the increased cost of purchased
water and greater interest earnings on sewer funds accumulated for future construction projects.
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Total ODeratinq and Non-Operatinq Expenses
(in thousands)
1994-95 over %
Category 1994-95 1993-94 lunder) 1993-94 Chanqe
CMWD $1 3,532 $1 3,212 $320 2.4%
Golf Course 403 778 (375) (48.2)
Sewer 5,446 4,992 454 9.1
Solid Waste 117 112 5 4.5
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Expenses in the Enterprise Funds totaled $1 9.5 million, up $400,000 over 1993-94. CMWD cos
costs, and bad debt expenses. The increase in sewer expenses is related to the unusually IC
expense for the regional sewer plant services in 1993-94 as an adjustment for prior perk
payments was made that year. During 1994-95 a total of 17,115 customers were provided wi
water and/or sewer services.
In 1989, the City joined with three other agencies to sell $33.5 million of sewer revenue bonc
These bond funds, along with funding from two additional agencies, financed the expansion
the Encina Wastewater Facility. The expanded facility should provide sufficient wastewai
treatment capacity to the year 2005. Carlsbad’s portion of the outstanding bonds is $1 2.1 milk
During 1994-95, member agencies authorized acquisition of land adjacent to the existing facil
for future improvements.
Golf course expenses in 1994-95 are primarily property taxes and street assessments associatc
with the land purchased for the municipal golf course. The decrease in golf course expens
is due to last year’s recording of non-transferrable costs for a previously considered locatior
rose primarily because of greater utilization of purchased reclaimed water, increased staff ir
Internal Service Funds
Internal Service Funds are used to account for services prcvided by a City department to ott
City departments. As with an Enterprise Fund, the source of revenue is user fees charged to t
departments receiving the service.
SELF-INSURANCE PROGRAM-WORKERS’ COMPENSATION & GENERAL LIABILITY
The City has been self-insured for Workers’ Compensation since September 1978 and the acth
for this program is recorded in the Workers’ Compensation Self-Insurance Internal Service Fur
Workers’ compensation claims expense for 1994-95 amounted to $976,000 compared
$71 3,000 in 1993-94. The increase in claims expense is primarily due to continuing expens
for claims made in prior years; new claims for workplace injuries occurring in 1994-95 declin6
Claims expense includes all costs incurred by the City’s third party workers’ compensati
administrator. The estimated claims payable at year-end were $1 million, no change from 19!
94. Working capital at June 30, 1995 is $850,000.
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The General Liability Self-Insurance Fund was established near the end of 1980-81. Claims
Actual insurance settlements, legal expenses and insurance premium all contributed to the
dramatic decrease in liability claims. The estimated claims payable at year-end were $1 79,000,
down $438,000. The City is a member of the California Municipal Insurance Authority risk-
management pool which covers most losses exceeding $500,000, with catastrophic losses
covered by additional excess liability insurance. Working capital totaled $2.5 million at June 30,
1995. Of this amount, $1.5 million is required to be retained in the fund under the City’s contract
with the Insurance Authority.
expense and other related costs for 1994-95 totaled $206,000, down $900,000 from 1993-94.
OTHER INTERNAL SERVICE FUNDS
Fleet Management operates a central vehicle maintenance program which services all City
vehicles and other small machinery. Replacement of vehicles, including fire equipment, is an
important component of the program. The City’s current policy for funding the replacement of
fleet equipment is to set aside a certain amount of money each year in a replacement fund to
Useful lives of vehicles have been extended over recent years as a cost savings measure;
however, large vehicle purchases are planned for the near future. Vehicle purchases totaled
$640,000, an increase of $1 24,000 over the previous year. Fleet Management annual expenses
during 1994-95 were $1.8 million, and at year-end working capital was $3.9 million.
The City also operates a health insurance internal service fund for collecting premiums, paying
the insurance carrier, and holding reserve funds. At June 30, 1995, total health insurance
working capital totaled $1.25 million. The City’s Data Processing internal service fund collects
revenues and expenses related to the providing of data processing services to the City. At year-
end, working capital totaled $570,000.
insure that there will be sufficient funds available when the equipment needs to be replaced,
Anencv Funds
The City uses Agency Funds to account for assets held by the City for other individuals, entities
or governments. Typically these funds relate to contractors’ cash performance bonds, employee
payroll deductions, or deferred compensation accounts.
The City held a total of $19.4 million in Agency Funds as of June 30, 1995, compared to $18.3
million at the end of 1993-94. The increase is due to the deposits into the City’s deferred
compensation plans, offset by a decrease in contractors and miscellaneous deposits.
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Cash Manaqement
The City Treasurer is charged with the responsibility of safeguarding the City’s assets, receivir
all payments due the City and investing all inactive funds. During this year the City Treasur
earned about $7.1 million in interest on investments in all fund types from instruments yieldir
up to 9.375%, compared to earnings of $6.5 million during 1993-94. Funds are invested
various types of instruments as shown below. At June 30, 1995, the Treasurer had 100% of i
available funds invested. The City’s total portfolio at year-end was $146.5 million. Below is
summary of cash and investments outstanding as of June 30, 1995:
Amount
Invested I Interest Rates [in millions)
Cash and Deposits 0.00 - 5.70 $ 1.0
Federal Agency Obligations 3.48 - 8.70 57.0
Treasury Issues 4.25 - 6.93 6.7
Corporate Notes 4.75 - 9.00 33.0
Investment Pool 5.98 33.2
Mutual Funds 3.00 - 12.00 14.2
Guaranteed Investment Contracts 8.57 - 9.12 1.4
$1 46.5
As required by State law, the City Council adopted a comprehensive investment policy specifyir
the type and term of City investments. The policy’s objective is to maintain the level
investment of all idle funds as close to 100% as possible and to invest in instruments which M
provide the highest return without endangering the basic requirements of safety and liquidity
E 17
Gann Limit - Amropriations Subject to Limit
In 1979, Proposition 4, the "Gann" initiative, was passed. The purpose of this law is to limit
government spending by putting a cap on the total proceeds of taxes that may be appropriated
each year. This limit is increased each year through a formula that takes into consideration
changes in the Consumer Price Index and state per-capita income. When a city reaches this limit
excess tax revenue must be returned to the State or citizens through a process of refunds,
rebates, or other means that may be defined at that time. The Gann limit for the City of Carlsbad
has increased steadily since 1979 and still provides the City with a comfortable operating margin.
In 1991-92 state law allowed the recalculation of the City's limit with new inflation factors. Using
population growth in San Diego County and growth in State per capita income allowed the Gann
limit for 1994-95 to increase to $1 02 million. Appropriations of "proceeds of taxes" was only $31 .I
million, thus allowing the City a healthy margin of $71 million.
CITY OF CARLSBAD
PROPOSITION 4 SPENDING LIMIT
VS. APPROPRIATION OF PROCEEDS OF TAXES
MILLIONS OF DOLLARS
120 I , I , 00 .......................................................... ___
80 c .......................................................
60 ............................................
10986 1987 1988 1989 1990 1991 1992 1993 1994 1995
FISCAL YEAR
APPROP OF TAXES @SPENDING LIMIT
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I Economic Outlook
The general outlook for Carlsbad over the next few years is cautiously optimistic with the easilr
of the recession. State and regional economic forecasts show consumer recovery coupled wii
continued depressed levels of construction spending over the next several years in tt
outlook are projected to fuel the rise in new residential housing construction.
New construction in Carlsbad is expected to rebound faster than the rest of the San Dieg
region. Vacancy rates for office buildings in Carlsbad are nearly twice as scarce as county wid
Sites available for research and development are in even shorter supply with a vacancy ra
below 3%. Residential building permits tripled during 1994-95 and numerous new housir
developments are ready to build when financially viable.
The long-term outlook for Carlsbad is very optimistic. The City is being touted as Silicon Valk
south, and has become a magnet for multimedia entrepreneurs and designers of top-flight g(
clubs. Locating businesses in Carlsbad is desirable because of its lack of traffic congestio
temperate climate, and single-runway airport. The City has streamlined the planning process fi
new companies but does not waive fees or abandon strict requirements for open spa(
preservation, height limits or other land uses.
Providing the much-needed tax base to finance the City’s growing service needs are the plannc Leg0 family theme Dark, the national gemological institute currently under constructio
expansion of retail sales facilities, major discount warehouse outlets, continued plans for tt
construction of major shopping centers as well as the construction of two major hotels
southern Carlsbad. Future commercial/industriaI development in the Palomar Airport lndustri
Park area will also add to Carlsbad’s economic health.
The City recognizes the importantance of its tourist industry with financial support to tt
Convention and Visitors Bureau. Realizing that the Pacific Ocean beaches play an important rol
Council continues to appropriate funds to keep the state beach parking free to all beach use
and recently completed construction of additional restroom facilities.
The City’s long range capital improvement program anticipates the construction of more th;
$500 million in improvements between now and buildout. Our program includes new park
libraries, fire stations, streets, water and sewer lines, and other facilities to maintain the level
service offered to the Carlsbad resident. This aggressive construction program will place
burden on the operating budget that must be managed through careful scheduling to mat
demands with resources, Uncontrolled demand could easily outpace the City’s ability to pay 1
services.
The City’s Growth Management Program holds the key to the timing of many of the develc
ments that will support the City through fees and taxes. The program was established by a vc
of the citizens in 1986 and is designed to insure that new development occurs in conjunction w
careful planning of infrastructure and service needs.
cammercial/industrial area. Increased aff ordability, pent-up demand, and a healthier employmei
I
An outgrowth of the Growth Management Program is the long range capital improvement
program which covers the current year through buildout of the City. Under the Growth
Managment Program, development occurs only when infrastructure improvements required to
serve the development are financed and constructed as a part of the development. Capital
projects are phased to closely match incremental growth demands. Standards have been
established in eleven areas including circulation, libraries, fire protection, parks, drainage, water,
sewers, and open space.
The comprehensive Growth Management Financing Program is an important part of growth
management. This program links the infrastructure funding needs of the City and other agencies,
such as schools, together with the needs of development to fund public purpose projects. The
coordinated effort depends on the rational use of Mello-Roos Community Facilities Districts,
191 3/1915 Act Assessment Districts and fee programs to finance facilities concurrent with
demand without overburdening the land or home owner.
Certificate of Award for Outstanding Financial Reporting
The California Society of Municipal Finance Officers (CSMFO) presented a Certificate of Award
for Outstanding Financial Reporting to the City of Carlsbad for its comprehensive annual financial
report for the fiscal year ended June 30, 1994. The City has received the award since 1985. We
believe our current report continues to conform to the program requirements.
Acknowledqments
This report has been a joint effort by many people from many different areas of responsibility,
The dedicated efforts of Cheryl Alien, Assistant Finance Director, and all of the accounting staff,
deserve full credit for the preparation and contents of this report. We appreciate Karen Walz and
Dean Votava of Conrad & Associates for the professional way in which the audit of this financial
report was conducted. It has been a pleasure to work with the Conrad & Associates staff
throughout this period.
Respectfully submitted,
6: - LISA HILDABRAND
Finance Director
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CITY OF CARLSBAD
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I ELECTED CITY OFFICIALS
Claude A. Lewis, Mayor
Julianne Nygaard, Mayor Pro Tem
Ramona Finnila, Council Member
Ann J. Kulchin, Council Member I Matt Hall, Council Member
Aletha L. Rautenkranz, City Clerk
James M. Stanton, City Treasurer
ADMINISTRATION AND DEPARTMENT HEADS
Raymond R. Patchett, City Manager
Frank Mannen, Assistant City Manager
James F. Elliott, Financial Management Director
Martin Orenyak, Community Development Director
David Bradstreet, Community Services Director
Ron Ball, City Attorney
Ruth Fletcher, Purchasing Officer
Lisa Hildabrand, Finance Director
Michael Holzmiller, Planning Director
Lloyd Hubbs, City Engineer
Ann Jensen, Human Resources Director
Clifford Lange, Library Director
Dennis Van Der Maaten, Fire Chief
Robert Vales, Police Chief
CHAIRPERSONS, COMMISSIONS AND BOARDS
Laurie Batter Arts Commission
Lu Ann Hall
Paul Vanderpool Cable Television Foundation
Tom Erwin
Peggy Savary Design Review Board
Gordon Bizieff Historic Preservation Commission
Doug Avis Housing Commission
Claude A. Lewis
Emmett J. Woodward, Jr.
Courtney Heineman
Jim Page Personnel Board
Kim Wels ho ns
Jim W hittaker
Emmett J. Woodward, Jr.
Karen Gleason-Huss Sister City Committee
Jim Courtney Traffic Safety Commission
Richard Allen
Mary Melideo Water Commission
Beach Erosion Committee
Citizens Committee to Study Growth
Housing and Redevelopment Commission
Library Board
Parks and Recreation Commission
Planning Commission
Senior Citizen Commission
Serra Cooperative Library System Advisory Boa
Frank Alshire Parking Authority
Underground Utility Advisory Committee
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CERTIFIED PUBLIC ACCOUNT/
1100 MAIN STREET, SI
IRVINE. CALIFORNIA ~SSOCIATES, L.L.p. (714) 47
CONRAD
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
The Honorable Members of City Council I City of Carlsbad, California
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u basis for our opinion.
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INDEPENDENT AUDITORS' REPORT
We have audited the accompanying general purpose financial statements of the City
Carlsbad, California as of and for the year ended June 30, 1995, as listed in the table
contents. These general purpose financial statements are the responsibility of
management of the City of Carlsbad, California. Our responsibility is to express an opir
on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards Government Auditing Standards, issued by the Comptroller General of the United Sta
Those standards require that we plan and perform the audit to obtain reasonable assura about whether the general purpose financial statements are free of material misstatem An audit includes examining, on a test basis, evidence supporting the amounts and disclosi
in the general purpose financial statements. An audit also includes assessing the accoun
principles used and significant estimates made by management, as well as evaluating overall financial statement presentation. We believe that our audit provides a reason;
In our opinion, the general purpose financial statements referred to above present fairly
all material respects, the financial position of the City of Carlsbad, California as of June 1995, and the results of its operations and the cash flows of its proprietary fund types for year then ended in conformity with generally accepted accounting principles.
The City has changed its method of accounting for taxpayer-assessed tax revenue! governmental funds and changed its presentation of advances owed by the Redevelopm
Agency, as discussed further in note 24 to the financial statements.
Our audit was made for the purpose of forming an opinion on the general purpose finan
statements taken as a whole. The combining, individual funds, and individual account gr financial statements and schedules listed in the table of contents are presented for pup of additional analysis and are not a required part of the general purpose financial statemi of the City of Carlsbad, California. Such information has been subjected to the audi procedures applied in the audit of the general purpose financial statements and, in opinion, is fairly stated in all material respects in relation to the general purpose finar statements taken as a whole. The scope of our audit did not include the suppleme statistical schedules listed in the table of contents and we do not express an opinion on tl-
In accordance with Government Auditing Standards issued by the Comptroller General of United States, we have also issued a report dated September 29, 1995 on our consideratio the City's internal control structure and a report dated September 29, 1995 on compliance with laws and regulations.
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&&d8.AU~k& d L, A, 4
September 29, 1995
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MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION I
CITY OF CARLSBAD
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 1995
Governmental Fund Twes
Special Debt Capital Service Proiects General Revenue Assets and Other Debits
Assets : Cash and investments (note 3) $14,108,007 9,076,640 4,730,761 44,343,904 Deferred compensation investments (note 17) - - - -
Receivables : Loans - 2,319,955 - -
Taxes 1,524,653 44,426 52,218 141,045 Accounts, net 81,930 77,756 22,187 31,722 Special assessments - - 6,570,000 -
Other 93,809 - - -
Accrued interest 385,318 131,272 82,011 604,447 Due from other funds (note 4) 733,329 - - - - 125,983 - 1,911,517 Due from other governments Advances to other funds (note 5) 11,692,931 - - 1,700,000 hen t ory Prepaid expenditures Restricted assets:
Accrued interest
- - - 209,514 - - 20,452 -
Cash and investments (note 3) - - - -
Property, plant and equipment, net (notes 6 and 7) - - - -
Amount available in debt service funds - - - -
Amount to be provided for retirement of general long-term debt - - - -
- - - -
Other debits:
Total assets and other debits $28.640.429 11.985.5 46 11.457.177 48.732.635
Liabilities. Equitv and Other Credits
Liabilities: Accrued liabilities $ 2,923,434 214,407 - 658,069 Accrued interest payable - - - -
Due to other funds (note 4) - 299,473 - 433,856 Advances from other funds (notes 5 and 10) - - - 4,550,000
Due to other governments - 39,377 - - Estimated claims payable - - - 500,000 Due to bondholders - - - -
Deposits payable 12,305 - - - Current portion of long-term debt (note 10)
Deferred compensation payable (note 17) - - - -
assets - accrued interest payable - - - -
Long-term debt payable (notes 8, 10 and 20) - - - -
- - - -
Current liabilities payable from restricted
Deferred revenue 4,641 ,046 - 6,S70,000 144,059
Total liabilities 7,576,785 553.257 6.S70.000 6,285,984
Equity and Other Credits: Investment in general fixed assets - - - - Contributed capital (note 12) - - - - Fund balance: Reserved (note 11) 7,926,946 3,405,322 1,702,620 2,880,689 Unreserved (note 11) 13,136,698 8,026,967 3,184,557 39,565,962 Retained earnings: Reserved (note 11) - - - -
Unreserved (note 11) - - - -
Total equity and other credits 21,063,644 11,432,289 4.887,177 42,446,651
Total liabilities, equity and other credits $28,640,429 11,985,546 11,457,177 48,732,635
See accompanying notes to general purpose financial statements.
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Proprietary Fund Tvpes Fiduciarv Fund Tvpe Account Groups General General Internal Fixed Long-Term Total Enterprise Service Azencv Assets Debt lhfemorandum
40,271,350 10,562,014 10,968,996 - - 134,061, - - 8,296,176 - - 8,296, - - - - - 2,319, 6,093 - 1,620 - - 1,770, 2,845,679 33 28,120 - - 3,087,
93 9 658,741 153,559 132,895 - - 2,148, 104,750 - - - - 838,
222,092 103,893 -
I - - - - 6,570, - - - - -
1,063,226 - - - - 3,100 - - - - - 13,392 - - 346 - - - 209
4,172,718 - - - - 4,172 - 4 107,259,047 3,240,844 - 65,999,342 - 176,499
- - - - 4,887,177 4,887
- - - - 35.513,625 35,513
156.608.396 14.060,3 43 39.427 307 65.999.3 42 40.400.802 397.312
- -
4,700 - - -
1,808,249 195,661 - - - 5,799 - - 754,809 - - 154
- - 838 104,750 - - - - - - 8,842,931 13,392 - - 88 49,166 - -
90,000 1,561,808 - - - 2,151 - - 4,699,801 - - 4,699 - - - 1,422 415,326 - 5,677,021 - - 6,104 - - 8,296,176 - - 8,296
- - 492 492,774 - -
2,070,778 - - - - 13,425 25,037,620 - - - 31,557,871 56,595 I 31,491,527 1,757,469 19,427.807 - 40,400,802 114.063
- - - 65,999,342 - 65,999 84,934,634 6,729,951 - - - 91,664
- - - - - 15,915 - - - - - 63,914
- - - 2,535 37,646,987 5,572,923 - - - 43,219
125,116,869 12,302,874 - 65,999,342 - 283,248
156.608.396 14.060.3 43 19.427.807 55.999.3 42 40.400.802 397.312
1,422,864 -
2,535,248 -
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CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and
Year Ended June 30, 1995
Changes in Fund Balances - All Governmental Fund Types
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Spec i a 1 Debt Capital Totals General Revenue Service Projects lMemorandum OI
Taxes $27,175,812 1,489,568 2,668,851 5,290,325 36,624,55( 2,392,270 - 2,392,27( Licenses and permits
Charges for services 3,978,665 2,266,389 - 3,574,176 9,819,23( Fines and forfeits 263,411 - - - 263,411
Interest income 1,311,791 484,979 400,851 2,218,354 4,415,971 Interdepartmental services 2,303,335 - - - 2,303,331 Contributions from property owners - - - 2,148,548 2,148,541
Miscellaneous 1.167.925 344.301 470 78.273 1.590.96'
Total revenues 41.255.769 8.016.970 3.070.172 17.425.606 69.768.51'
Revenues :
7,590,32: 2,619,90( - 4,115,930 - State subventions 2,619,900 42,660 3,431,733 - - In t ergovernment a1
Expenditures: Current : General government 4,917,082 - - 954,166 5,871,24 15,490,522 425,156 - - 15,915,67 Public safety 6,378,074 - - - 6,378,07 Community development Housing and welfare - 3,309,663 - - 3,309,66 Library and the arts 2,652,932 507,197 - - 3,160,12 Community services 6,970,969 2,218,399 - - 9,189,36 Capital outlay - - - 12,159,653 12,159,65 Debt service: Principal retirement - - 1,599,515 - 1,599,51 Interest and fiscal charges - - 2,604,280 - 2,604,28
St at e mandated payment - - 92.495 - 92.49
Total expenditures 36.409.579 6.460.415 4.296.290 13.113.819 60,280,ia
Excess (deficiency) of revenues over (under) 1 expend i t ur es 4,846,190 1,556.555 (1,226,118) 4,311,787 9.488.41
Other financing sources (uses): Operating transfers in 15,167 5,005 1,598,796 1,537,871 3,156,83 Operating transfers out (1,843,393) (15,167) (528,300) (461,279) (2,848,13 Proceeds of advance - - 502,908 - 502,9C Proceeds of loan - - - 1,199,950 1.199,95
Total other financing
Excess (deficiency) of
sources (uses) (1,828,226) (10.162) 1,573.404 2,276,542 2,011.5-
revenues and other financing sources over (under) expenditures and other financing uses 3,017,964 1,546,393 347,286 6,588,329 11,499,9
19,554,430 9,926,201 4,540,835 35,885,287 69,906,7
Residual equity transfers in 291,250 - - - 291,2
Residual equity transfers out ~1,800,000) 140,305) 1944) 126,965) (1,868,2
Fund balances at end of year $21.063.6 44 11.432.289 4.887, 177 42.446.651 79.829.71
I Fund balances at beginning of year, as restated (note 24)
See accompanying notes to general purpose financial statements.
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CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) - All Governmental Fund Types
Year Ended June 30, 1995
General Fund Actual on Variance- Budgetary Over Budget Basis I Under)
Taxes $26,550,000 27,175,812 625,812 Licenses and permits 2,192,000 2,392,270 200,270 42,660 347,900 State subventions Charges for services 3,550,000 3,978,665 428,665 Fines and forfeits 244,000 263,411 19,411 Interest income 1,177,OOO 1,311,791 134,791 Interdepartmental services 2,157 ,OOO 2,303,335 146,335 Miscellaneous 850.000 1,167.925 317.925
Total revenues 38,992,000 41,255,769 2,263,769
Revenues :
- 42,660 2,272,OOO 2,619,900 In t ergovernmen t a1
Expenditures: Current: General government 6,403,716 5,236,894 (1,166,822) Public safety 15,834,669 15,550,419 (284,250) Community development 7,215,930 6,694,867 (521,063) Housing and welfare - - -
Library and the arts 2,755,285 2,662,411 (92,874) Community services 7,477,492 7,303,316 (174,176) Capital outlay - - -
Principal retirement - - -
Interest and fiscal charges - - -
State mandated payment - - -
Debt service:
Total expenditures 39.687.092 31,447,907 (2,239.185)
Excess (deficiency) of revenues over (under) expenditures (695.092) 3,807,862 4,502,954
Other financing sources (uses): Operating transfers in 15,167 15, 167 - Operating transfers out (1,843,393) (1,843,393) - Proceeds of advance - - -
Total other financing sources (uses) 11,828.226) j1.828.226) -
Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (2,523,318) 1,979,636 4,502,954
Fund balances at beginning of year, as restated (note 24) 19,554,430 19,554,430 -
291,250 291,250 Residual equity transfers in -
Residual equity transfers out - J 1.800.000) (l,soo.ooo~
Fund balances at end of year -20.025.316 2.994.204
See accompanying notes to general purpose financial statements.
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I Special Revenue Funds Debt Service Funds Totals (Memorandum On1 Actual on Variance- Actual on Variance- Actual on Var Budgetary Over Budgetary Over Budgetary 0
Budget Basis f Under ) Budget Basis (Under) Budnet Basis a
36,568 1,3OO,OoO 1,158,957 (141,043) 29,303,000 29,824,337 - - - - - - 2,192,000 2,392,270 3,873,122 3,431,733 (441,389) - - - 3,873,122 3,474,393 ( - - - - - - 2,272,000 2,619,900 1,671,140 2,266,389 595,249 - - - 5,221,140 6,245,054 1. - - - - - 244,000 263,411 249,479 38,000 116,748 78,748 1,450,500 1,913,518 - - - - - - 2,157,000 2,303,335
I 1,453,000 1,489,568
1 235,500 484,979
286,889 344,301 57.412 - 470 470 1,136,889 1,512.696 - 1 7,519,651 8,016.970 497,319 1,338,000 1,276,175 (61.825) 47,849,651 50,548,914 g
- - - - - 6,403,716 5,236,894 (1 510,302 510,302 - - - - 16,344,971 16,060,721 I - - - - - 7,215,930 6,694,867 I 3,536,071 3,339,512 (196,559) - - - 3,536,071 3,339,512 1 835,484 643,087 (192,397) - - - 3,590,769 3,305,498 I - - - 11,778,266 10,917,880 I
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- - - - - - - - E 4,300,774 3,614,564 (686,210)
- - - 19,515 19,515 - 19,515 19,515 - - - 1,354,533 1,353,081 (1,452) 1,354,533 1,353,081 - - - 92,500 92,495 (5) 92.500 92,495 -
9,182.631 8.107.465 (1,075,166) 1.466,548 1,465.091 J1.457) 50.336,271 47,020,463 (3
(1.662.980) 190.495) 1,572,485 1128,548) 1188,916) (60.368) (2.486.620) 3.528.451 6
5,005 - - - - 20,172 20,172 - (528,300) (528,300) - (2,386,860) (2,386,860) 1 5,005
- - - 502,908 502.908 - 502.908 502.908 - 1 110,162) (10,162) - /25,392) 125,392) - 11,863,780) (1,863,780) - u (1,673,142) (100,657) 1,572,485 (153,940) (214,308) (60,368) (4,350,400) 1,664,671 6
9,926,201 9,926,201 - 2,045,683 2,045,683 - 31,526,314 31,526,314
- - - - - - 291,250
( 15,167) (15,167)
- - - (1,840,305) (1 I- - 140,305) (40.305) -
8.253.059 9.785.239 1,532.180 1.891.7 43 1.831.375 (60.368) 27.175.91431.641.930 f II
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CITY OF CARLSBAD
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings - All Proprietary Fund Types
Year Ended June 30, 1995
Totals
Enterprise Internal Service /Memorandum Onlv)
Operating revenues:
Water sales $13,047,541 - 13,047,541
Sewer service charges 4,599,075 - 4,599,075
Other charges for services 884,028 5,680,531 6,564,559
Contributions from other government agencies 402,556 - 402,556
603,899 Miscellaneous 160.678 443,221
Total operating revenues 19,093,878 6,123,752 25,217,630
Operating expenses:
Plant operations 1,828,730 - 1,828,730
Purchased water 7,421 ,532 - 7,421,532
Depreciation and amortization 2,330,642 687 , 200 3,017,842
Fuel and supplies - 410,425 410,425
Claims expense - 3,013,993 3,013,993
General and administrative 6.241.270 1.570.378 7,811,648
Total operating expenses 17,822,174 5,681,996 23,504,170
Operating income (loss) 1.271,704 441,756 1.713 1 460
Nonoperating revenues (expenses):
Interest income 2,436,881 519,867 2,956,748
Interest expense and fees (1,631,179) - (1,631,179)
Gain (loss) on sale of property 17,248 51,980 69,228
Property taxes 730,050 - 730,050
Miscellaneous income (expense) 58,438 11,673 70,111
Amortization of issuance costs 144,243) - (44,243)
Total nonoperating revenues (expenses) 1.567,195 583,520 2,150,715
Income before operating transfers 2,838,899 1,025,276 3,864,175
Operating transfers in - 11,300 11,300
Operating transfers out ( 100,000) 1220.000) (320,000)
Net income 2,738,899 816,576 3,555,475
Retained earnings at beginning of year 37.443.336 4,756,347 42,199.683
Retained earnings at end of year $40.182.235 5,572.923 45.755. 158
See accompanying notes to general purpose financial statements.
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I CITY OF -BAD
Combined Statement of Cash Flows - All Proprietary Fund Types
Year Ended June 30, 1995 I
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Enterurise Internal Service lhiemoran
Operating income (loss) $ 1,271,704 441,756 1,71
Adjustments to reconcile operating income (loss) to net
Cash flows from operating activities:
cash provided by operating activities:
Depreciation and mort izat ion 2,330,642 687,200 3,Ol
Decrease (increase) in receivables 340.865 6,159 34
Decrease (increase) in due to/from other governments 31,930 -
Decrease (increase) in inventory 2,805 (20,110) (1
Increase (decrease) in deposits payable 93,645 -
Increase (decrease) in accrued liabilities (59,185) (289,736) ( 3'
Increase (decrease) in estimated claims payable 90,000 1420,614) 13:
Net cash provided by operating activities 5,448.572 404,655 5.8!
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Increase (decrease) in loans payable 1,346,166 - 1,3r
Cash flows from noncapital financing activities:
Transfers of capital to/from other funds 1,800,000 (250,000) 1,5!
Transfers of cash to/from other funds ( 100,000) (208.700) (3(
Net cash provided by (used for) noncapital
financing activities 1,700,000 (458.700) 1.2L
Cash flows from capital and related financing activities:
Purchases of property, plant and equipment (5,858,039) (631,920) (694,
Principal payment on bonds (1,064,782) - (190
Interest and other fees paid on bonds (1,610,438) - (1,6
7 Property taxes received 730,050 -
Capital contributions received 1,760,658 - 1.7
Net cash provided by (used in) capital and
related financing activities 16,042.551) (631.920) 16.6
Cash flows from investing activities:
180 Investment in restricted assets 1,022,019 -
Interest on investments 2,321,257 537,887 2.8
Net cash provided by investing activities 3,343.276 537,887 3.8
Net increase in cash and cash equivalents 4,449,297 (148,078) 4,3
Cash and cash equivalents at beginning of year 35.822.053 10.710.092 u
Cash and cash equivalents at end of year $40.271.35Q 10.562.014 xu
Supplemental schedule of noncash investing and
financing activities:
Special assessments lien capitalized $2,781,317 - 2,i I Capital assets contributed by other funds - 35,263
See accompanying notes to general purpose financial statements.
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1 CITY OF CARLSBAD
Notes to General Purpose Financial Statements
Year Ended June 30, 1995 I
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(1) Summary of Significant Accounting Policies
The City of Carlsbad, California (Carlsbad) was incorporated on July 16, ' Carlsbad operates under a Council-Manager form of government and provides following services: general government, public safety, community developr housing and welfare, library, and community services.
The accounting policies of Carlsbad and its component units conform to gene accepted accounting principles as applicable to governmental units. The following
summary of the more significant policies:
(a) I Description and Scope of the Reporting Entity
As required by generally accepted accounting principles, these fina
statements present the City of Carlsbad (the City) and its component I
entities for which the City is considered to be financially accountable. The is considered to be financially accountable for an organization if the appoints a voting majority of that organization's governing body and the C able to impose its will on that organization or there is a potential for organization to provide specific financial benefits to or impose specific fina burdens on the City. The City is also considered to be financially accountabl an organization if that organization is fiscally dependent upon the City (i.e..
unable to adopt its budget, levy taxes, set rates or charges, or issue bonded without approval from the City). In certain cases, other organizations included as component units if the nature and significance of their relatio with the City are such that their exclusion would cause the City's fina statements to be misleading or incomplete.
Based upon the above criteria, the component units of the City are the Ho
Authority of the City of Carlsbad, the Parking Authority of the City of Carl
the City of Carlsbad Public Improvement Corporation, the Car Redevelopment Agency and the Carlsbad Municipal Water District (the Distr.
Since the City Council serves as the governing board for these component I all of the City's component units are considered to be blended component 1 Blended component units, although legally separate entities, are in subst,
part of the City's operations and so data from these units are reported wit interfund data of the primary government. Only the Parking Authority, the of Carlsbad Public Improvement Corporation, and the Carlsbad Redevelop Agency issue separate component unit financial statements. Upon completion, the financial statements of these component units can be obtain
City Hall.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/1) Summary of Significant Accounting Policies, (Continued)
(b) Basis of Presentation
The accounts of the City are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund or account group are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund balanceketained earnings, revenues, and expenditures or expenses. The various funds and account groups are summarized by type in the financial statements. Fund types and account groups used by the City are as follows:
GOVERNMENTAL FUND TYPES:
Governmental funds are used to account for the City's expendable financial
resources and related liabilities (except those accounted for in proprietary and similar trust funds). The measurement focus is based upon determination of changes in financial position. The following are the City's governmental fund
types:
General Fund
The general fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds
Special revenue funds are used to account for revenues derived from specific sources (other than major capital projects) that are restricted by
law or administrative regulation to expenditures for specific purposes.
Debt Service Funds
Debt service funds are used to account for the accumulation of resources
for, and payment of, general long-term debt principal, interest and related
costs.
Capital Proiects Funds
Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds.
PROPRIETARY FUND TYPES:
The City applies all applicable GASB pronouncements in accounting and reporting
for its proprietary operations as well as the following pronouncements issued on
or before November 30, 1989, unless these pronouncements conflict with or
contradict GASB prounouncements: Financial Accounting Standards Board
(FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBS) of the Committee on Accounting Procedure. Proprietary funds include the following fund types:
38
1 CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued) 1
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(1 ) Summary of Significant Accounting Policies, (Continued)
Enterprise Funds
Enterprise funds are used to account for operations (a) that are finar primarily through user charges, or (b) where the governing body has dec that determination of net income is appropriate.
Internal Service Funds
Internal Service funds are used to account for goods or services provide
one department to other departments of the City on a cost-reimburser basis.
FIDUCIARY FUND TYPE:
Fiduciary funds are used to account for assets held by the City in a trL capacity or as an agent for individuals, private organizations, other governmt units, and/or other funds. The following is the City's fiduciary fund type:
Agency Funds
Agency funds are used to account for assets held by the City in an ag capacity for individuals and private businesses. They do not ink measurement of results of operations.
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ACCOUNT GROUPS:
Account groups are used to establish accounting control and accountabilit:
the City's general fixed assets and general long-term debt. The following are City's account groups: 1 General Fixed Assets Account Grow
This account group is used to account for all fixed assets of the City (
than those accounted for in the proprietary funds.
General Long-Term Debt Account Group
This account group is used to account for all long-term obligations 0'
City except those accounted for in the proprietary funds and trust fund 1 (c) Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measurement f Accordingly, only current assets and current liabilities are included on
spendable resources. Operating statements for governmental fund types ri
increases (revenues) and decreases (expenditures) in available, spenc
balance sheets, and the reported fund balance provides an indication of avail
B resources.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/1) Summary of Significant Accounting Policies. (Continued)
The proprietary fund types are accounted for on an "income determination"
or "cost of services" measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity
provides an indication of the historical net worth of the fund. Operating
statements for proprietary fund types report increases (revenues) and
decreases (expenses) in total historical net worth.
Fiduciary fund types are custodial in nature (assets equal liabilities) and do
not involve measurement of results of operations. Fiduciary fund assets and liabilities are accounted for on the modified accrual basis of accounting.
Governmental fund types use the modified accrual basis of accounting. Revenues are recognizable when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current
period or soon enough thereafter to be used to pay liabilities of the current
period. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the individual programs are used as guidance.
Revenues that are accrued include real property taxes, sales tax, interest,
and some state and federal grants.
Real property taxes are levied on October 15 against owners of record at March 1. The taxes are due in two installments, on November 1 and February 1, and become delinquent after December 10 and April 10, respectively. Tax liens attach annually as of 12:Ol a.m. on the first day of March in the fiscal year for which the taxes are levied. Under the provisions of NCGA Interpretation 3, property tax revenue is recognized in
within 60 days of the end of the fiscal year.
Governmental expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the
debt service fund for payments to be made early in the following year.
Proprietary funds use the accrual basis of accounting, i.e., revenues are recognized in the period earned and expenses are recognized in the period incurred.
(d) Encumbrances
the fiscal year for which the taxes have been levied, provided it is collected
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to
reserve that portion of the applicable appropriation, is employed as an
extension of formal budgetary control in the governmental funds.
Encumbrances outstanding at year-end do not constitute expenditures or liabilities, but are reported as reservations of fund balance.
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Notes to General Purpose Financial Statements
(Continued) I
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(1) Summarv of Significant Accounting Policies. (Continued]
(e) Cash and Investments
Cash includes amounts in demand and time deposits. Investments stated at cost or amortized cost, except for deferred compensation ai which are shown at market value.
The City maintains a cash and investment pool that is available for UI all funds. Interest income earned as a result of pooling is allocated tc appropriate funds based on average monthly cash balances.
(f) Inventories
Inventories consist of materials and supplies that are valued at cost an( recorded as expenses on a first-in, first-out basis when consumed.
(g) Compensated Absences
Vacation pay is payable to employees at the time used or upon termini of employment. For governmental funds, the cost of accumulated vaci
expected to be paid in the next 12 months is recorded as a fund liabilitb amounts expected to be paid after 12 months (if any) are recorded ir general long-term debt account group. For compensated absences recc at June 30, 1995, all balances are expected to be paid within the follo 12 months. For proprietary funds, the cost of vacation is recorded liability when earned.
(h) Risk ManaEement
The City accounts for its general liability, health insurance, and wor compensation activities in internal service funds. The funds are respor for collecting premiums from other City funds and departments and pi claims settlements and insurance premiums. Interfund premiums are t on the insured fund's claims experience. Incurred but not reported cl are accrued at year-end if material. 8
(i) Unbilled Services
Unbilled water revenue of the enterprise Funds is recognized as e: when the water is consumed. I (j) General Fixed Assets
General fixed assets are recorded as expenditures in the governmental types and capitalized at historical cost in the general fixed assets acc
group. In the case of gifts or contributions, such assets are recorded a market value at the time received.
41
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
/1) Summarv of Significant Accounting Policies. (Continued)
Fixed assets consisting of certain improvements other than buildings,
including roads, bridges, curbs and gutters, streets and sidewalks, and drainage systems, have not been capitalized. Such assets normally are
immovable and of value only to the City. Therefore, the objective of
stewardship for capital expenditures is satisfied without recording these
assets.
In the general fixed assets account group, construction in progress is transferred to buildings or improvements upon approval by the City
Council, which approximates the completion date.
No depreciation has been provided on general fixed assets.
ProDertv. Plant and Equipment - Proprietary Funds
Property, plant and equipment used by proprietary funds is stated at cost or estimated historical cost. Contributed fixed assets are recorded at estimated fair market value at the time received. Net interest costs are capitalized on projects during the construction period.
Depreciation is charged to operations using the straight-line method based on the estimated useful life of the related asset. The estimated useful life
of the assets are as follows:
Years
(k)
Buildings and improvements 10 - 50
Transmission and distribution lines 40 - 70 Sewer, sewer lines and wells 50
Filters, pumps and fire hydrants 10 - 50
Wells, reservoirs and dams 10 - 100
Sewage treatment facility 55
Equipment 3 - 20
(1) Deferred Revenue
The deferred revenue in the General Fund represents interest due, but not available, on advances to the Carlsbad Redevelopment Agency.
The deferred revenue in the Debt Service Funds represents special
assessments receivable.
The deferred revenue in the Capital Projects Funds relates to funds received and to be applied toward future construction.
The deferred revenue in the Enterprise Funds relates to deposits or in-kind
prepayments for services to be rendered (e.g., sewer installation, etc.).
42
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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I (Continued)
(1) Summary of Significant - Accounting Policies, (Continued)
Statement of Cash Flows - Proprietary Funds
For purposes of the statement of cash flows, the Proprietary Funds con!
all highly liquid investments with an original maturity of three montk
less when purchased and all amounts invested in a cash and investment
to be cash equivalents.
(m)
(n) Advances to Other Funds
Interfund loan receivables are reported as advances and are offset eq by a fund balance reserve which indicates that they do not const expendable available financial resources and therefore are not availablc appropriation.
(0) Residual Eauity Transfers
Residual equity transfers represent non-routine transfers of equity beti funds, including amounts transferred to reflect the opening, closini reclassification of funds.
(p) Total Columns
Total columns on the combined statements are captioned "Memorar Only" to indicate that they are presented only to facilitate fina analysis. Data in these columns do not present financial position, resul operations, or cash flows in conformity with generally accepted ~CCOUI
principles. Such data is not comparable to a consolidation since intei eliminations have not been made.
(21 Budgetary Data
The City follows these procedures in establishing its budgetary data:
1. During May or June, the City Manager submits to the City Coun proposed operating budget for the fiscal year commencing the folk July 1. The budget includes proposed expenditures and estimated rev( I on a departmental basis.
2. Public hearings are conducted at City Council meetings to obtain citi comments during June.
3. Prior to July 1, the budget is enacted legally through passage c
appropriation resolution.
43
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(2) Budgetary Data. (Continued]
The City Manager is authorized to make transfers of appropriated amounts within a fund for up to $25,000. Revisions that alter the total appropriations of any fund must be approved by the City Council with the exception of budget adjustments which involve offsetting revenues and expenditures. The City Manager is authorized to increase or decrease an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue which is designated for said specific purpose. Quarterly
budget reviews are conducted each year and any major changes to the adopted budget are approved by the City Council at that time. During the year, several supplementary appropriations were necessary.
Budgets for governmental type funds are adopted on the modified accrual basis, except that encumbrances are treated as budgeted expenditures in the year purchases are
corn mitt ed.
Expenditures may not exceed budgeted appropriations at the departmental level, All
appropriations lapse at fiscal year-end unless City Council takes action in the form of a resolution to continue the appropriation into the following fiscal year.
For purposes of budgetary presentation, actual generally accepted accounting principles (GAAP) expenditures have been adjusted to include encumbrances outs tanding and designations for continuing appropriations at year-end and to exclude any earned leave accruals at year-end. Annual budgets are adopted for the General, Special Revenue and Debt Service Funds except for the following: College Boulevard, Hosp Grove COPS, and Parking Authority. Accordingly, the revenues and expenditures for these funds have been excluded from the budget basis financial statements. Annual budgets are not adopted for the Capital Projects Funds; therefore, budget basis financial statements have not been prepared because a comparison of such budgetary amounts to annual revenues and expenditures is not meaningful.
The following schedule is a reconciliation of the budgetary and GAAP fund balances:
Special Debt Gene r a1 Revenue Service Fund Funds Funds
Fund balances-budgetary basis $20,025,316 9 , 785 , 239 1 , 831 , 375
Fund balances designated for Encumbrances outstanding at year-end 723 , 609 199,970 -
continuing appropriations 399,010 1,447,080 - Earned leave at year-end (84,291 ) - - Fund balances of nonbudgeted funds - - 3,055,802
Fund balances - GAAP basis $21.063.644 11. 432.289 4.887, 177
44
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
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1 (3) Cash and Investments
Each participating fund's portion of the City's cash and investment pool is displaye the combined balance sheet as "Cash and investments." This category also incl cash and investments that are held separately by several of the City's funds.
Authoritv for Deposits and Investments:
The City's investment policy and state statutes authorize the City to inves obligations of the U.S. Treasury, its agencies and instrumentalities, commercial F rated A-1 by Standard and Poor's Corporation or P-1 by Moody's Commercial F
record with a maximum maturity of 180 days or 15% of the portfolio, ban acceptances with a maximum maturity of 270 days or 25% of the portfolio, repurc agreements with a maximum maturity of one week, certificates of deposit national and state licensed or chartered banks or federal or state savings and associations, medium-term corporate notes with a maximum five-year maturity I in the top two rating categories and not to exceed 30% of the portfolio, money m; and mutual funds whose portfolios consist of one or more of the foregoing investm the County Treasurer's investment pool not to exceed 15% of the portfolio, anc State Treasurer's investment pool.
State statutes require that all deposits be insured or collateralized. Deposit holding public funds on deposit are required to maintain collateral in the form of a of government securities with a market value of at least 10 percent in excess o City's deposit or 50 percent in excess of the deposit as collateral in mortgage pool:
Cash and investments held by the City at June 30, 1995 consisted of the following:
7,002 987,687 145,535.877 1 $146.530.566
Cash on hand (petty cash) $ Deposits Investments
Cash and investments are classified in the accompanying combined balance she follows:
Cash and investments $134,061,672 Deferred compensation investments 8,296,176
Restricted assets: Cash and investments 4,172,718
$146.530,566
Deposits:
The following summary presents the amount of the City's deposits which are
name (Category One), those deposits which are collateralized with securities he the pledging financial institution's trust department or agent in the City's (Category Two), and those deposits which are not collateralized or are collatere with securities held by the pledging financial institution or its trust departme
agent but not in the City's name (Category Three) at June 30, 1995.
insured or collateralized with securities held by the City or its agent in the (
45
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
13) Cash and Investments. (Continued)
Deposits, (Continued):
Catenorv Bank Carrying
Form of Deposit 1 2 3 Balance Amount
Demand deposits $121,592 1,470,053 - 1,591,645 771,987
Certificate of deposit - 215,700 - 215,700 215,700
1,807.3 45 987.687 Total deposits s121.592 1.685.753 -
Investments:
As defined in Governmental Accounting Standards Board Statement No. 3, investments in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are held by the City or its agent in the City's name.
Uninsured and unregistered investments, for which the securities are held by the counterparty's trust department or agent in the City's name.
Uninsured and unregistered investments, for which the securities are held by the counterparty or by its trust department or agent, but not in the City's name.
Category 2 -
Category 3 -
Market /
Catenorv Carrying Con t rac t
Form of Investment 1 2 3 Uncatenorized Amount Amount
U.S. Government agency
57,002,447 56,357,869
6,755,697 6,796,530 - 33,000,080 33,450,625
obligations (a) $56,015,499 986,948 - -
U.S. Treasury securities 6,690,879 64,818 - -
Corporate notes 33,000,080 - -
State Investment Pool
Guaranteed investment
(LAIF) (b) - - - 33,225,167 33,225,167 33,225,167
contracts (c) - - - 1,382,394 1,382,394 1,382,394
- 1,186,882 1,186,882 1,186,882
Mutual funds - deferred
compensation - - - 8,296,176 8,296,176 8,296,176
Mutual funds - other - - : 4,687,034 4.687,034 4,687,034
Investment agreements (c) - -
Total investments $95 * 706 * 458 1.051.766 - - - 48.777.653 145.535.877 145.382.677
46
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
I
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I
I (Continued)
(3) Cash and Investments, (Continued)
Investments, (Continued):
(a) Includes federal agency securities bearing interest rates that vary inverse the three month London Interbank Offered Rate (LIBOR), and other floatin$ U.S. government securities.
The State of California Pooled Money Investment Account (generally referr
as LAIF) has invested in certain market risk sensitive instruments includinl
Treasury strips, federal agency floating rate notes, federal ai mortgaged-backed securities, and corporate floating rate notes.
(c) This is contract value. No secondary market exists for resale in ord
(b)
I
I establish market value.
/4) Due To and From Other Funds
The following table shows amounts due from funds within the City to other within the City at June 30, 1995:
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1
1
Due to EnterDrise General Fund Sewer Fund Totals
Due from: Special Revenue Funds: Section 8 Housing Authority $279,361 - 279 , 361 Senior Nutrition 20,112 - 20,112
Capital Projects Funds: Community Development
Palomar Airport Road
Federal Grants 323,727 - 323,727
Block Grants 21 , 808 - 21,808
East Project 88,321 - 88 , 321
Enterprise Funds: Carlsbad Municipal Water District - 104.750 104.750
Total $733.329 104.750 838.079
47
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(5) Advances To and From Other Funds
The following table shows amounts advanced from funds within the City to other fu within the City at June 30, 1995:
Advances From Advances To Amount
General Fund Capital Projects Funds: Park Development $ 2,550,000
Planned Local Drainage Facilities 300,000
2,850,000
General Long-Term Debt Account Group 8,842,931
Capital Projects Funds:
Construction Construction 950 , 000
Traffic Impact Projects 750,000
Capital Projects Funds: General Capital Public Facilities
1.700.000 '
Total advances $13,392,931
16) General Fixed Assets
A summary of changes in the general fixed assets account group is as follows:
Balance at Balance at
July 1. 1994 Additions Deletions June 30, 195
Land $28 7 037 7 544 4,500 - 28,042,044
Buildings 27,426,136 - - 27,426,136
Improvements 3 , 071 , 197 21 , 607 - 3 , 092 y 804
Furniture and equipment 5 , 103,708 503 , 080 (378 y 675) 5 7 228,112 Construction in progress 1,906,649 329,702 (26,106) 2,210,245
Total $65.545.234 858.889 (404,781) 65 z 999.341
48
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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1 (Continued)
(6) General Fixed Assets. (Continued)
Construction in progress in the general fixed assets account group is composed (
following:
Expended Project Balance at
Authorization June 30, 1995 Commit
Library - South Carlsbad $1,138,728 1,099,803 38,
Public Art - South Carlsbad
Library 17(4,000 90,656 79 , 563,469 3,484,
173,331 16,
Poinsetta Park 4,047,945
Public Art - Seawall 30,000 15,000 15 ,
Public Restrooms - North Beach 265,000 171,276 93,
Library Remodel - Cole Library 311,231 90,434 220,
Other 39.878 6.276 33 %
2,210.245 3.982.
Larwin Park (22.3 acres) 19O,000
$6.192.782
There is no future financing commitment required on any of the above
construct ion projects .
Property. Plant and Equipment - Proprietarv Funds
A summary of proprietary fund type property, plant and equipment at June 30, 1
(7)
8 as follows:
Enterprise Internal Ser
Land, water rights, rights-of-way $ 7,014,008 -
Buildings and improvements 5,817,620 -
Wells, reservoirs and dams 19,316,600 -
Transmission and distribution lines 35,794,698 -
Sewer, sewer lines and wells 26,290,219 -
Sewage treatment facility 31,026,404 -
Equipment and vehicles 1,856,371 6,493,835 Construction in progress 4.817.023 -
131,932,943 6,493,832
Less accumulated depreciation (24,673,896) (3,252.991 I Property, plant and equipment, net $107,259,047 3,240 ~ 844
49
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(7) Property. Plant and Eauiument - ProDrietarv Funds, (Continued)
Enterprise Fund interest is charged to expense as incurred, except for interest rela
to borrowings used for construction, which is capitalized net of interest earned
construction funds borrowed. Interest capitalization ceases when the construct
project is substantially complete and placed in service. No interest costs w
capitalized in the Enterprise Funds during 1995. Total interest costs incurred (
interest earned on related interest-bearing investments acquired with proceeds of
tax-exempt borrowings were $1,553,955 and $254,329, respectively.
The Enterprise funds had various construction contracts in progress at June 30, 1' with an estimated cost to complete of approximately $1,500,000. There is no fut financing required on any of these projects.
18) Obligations Under Capital Leases
In August 1987, the City entered into a sale and leaseback agreement with a financ institution for the Community Development building. Principal and interest payme totaling $234,529 are to be paid each year through 1997 with a final payment $117,264 in fiscal year 1998. Payments are funded from public facilities fees paid development. The present value of these minimum lease payments equals $522,' after deducting amounts representing interest of $63,401. The City's leasehold inter of $1,602,160 has been recorded in the City's general fixed asset account group.
l9) Obligations Under Operating Leases
In June 1988, the Carlsbad Redevelopment Agency entered into an agreement to leas parking lot on State Street from a private party. The lease requires monthly ren payments for twenty years. Total annual rent payments are $49,308 for fiscal yc ending June 30, 1996 with annual cost of living adjustments required and market va adjustments required every 5 years after fiscal year ending June 30, 1988,
50
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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I Accrued assessments - 2.781.317 - 2,7
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I /lo) Long-Term Debt
The following is a summary of changes in the principal balance of long-term debt for ended June 30, 1995:
Principal Pr inc
Balance at Bal an July 1. 1994 Additions Reductions June 31
General long-term debt account group: Bonds $16,570,000 - (950,000) 15,6 Special assessment debt with
governmental commitment 7,290 , 000 - (335,000) 6,9
Obligations under capital leases 705 , 390 - (182,469) 5 Certificates of participation 7,555,000 - (295,000) 7,2 HUD Section 108 Loan - 1 , 199,950 - 1,1 Advances to the Carlsbad Redevelopment Agency 8,369,823 (a) 502,908 (29,800) 8,8
Total general
long-term debt $40.490.213 1.70 2.858 (1.792,269) u
Enterprise funds: Certificates of participation $10,640,000 - (775,000) 9,8 Installment purchase agreement 12,415,170 - (289,782) 12,l
Loan payabl e 942 , 840 1,388,649 (42,483) 2,2
Total enterprise funds $2A2Buu 1 4.169,966 (1.107.265) U
Beginning balance restated to reflect the recording of advances between the Cit Carlsbad Redevelopment Agency in the General Long-Term Debt Account Group. (a)
51
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt, (Continued)
Long-term debt at June 30, 1995 is comprised of the following issues:
Balance at
June 30, 19!
General Long-Term Debt:
1969 Carlsbad Parking Authority Revenue Bonds, principal and
interest due on October 1, 1995, interest payable at 6.4% per annum, payable from the General Fund. $ 125,000
1993 Carlsbad Housing and Redevelopment Commission Tax Allocation Bonds, principal due in amounts ranging from $240,000 to $1,000,000 on September 1 of each year through 2024. Interest
payable on March 1 and September 1 at rates varying from 5.25% to 5.30% per annum. 15,495,000
Total bonds payable 15,620,000
1986 College Boulevard Assessment District Bonds, principal due in amounts ranging from $360,000 to $865,000 on September 2 of each year through 2006, interest payable on September 2 and March 2 at rates varying from 7.6% to 8.0% per annum. Payable from assessments placed on property within the District.
1988 Hosp Grove Certificates of Participation, principal due in amounts ranging from $315,000 to $815,000 on August 1 of each year through 2008, interest payable on August 1 and February 1 at rates varying from 6.0% to 7.6% per annum. Payable from the
general fund. 7,260,000
Community Development Block Grant (CDBG) program - Section 108 loan payable to HUD. Funds used to acquire property for affordable housing project. Principal due in amounts ranging from $100,000 to $170,000 on August 1 of each year through 2003. Interest payable on August 1 and February 1 at rates varying from
6.84% to 8.27% per annum. Payable from future CDBG
entitlements. 1,199,950
6,955,000
52
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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1 (Continued)
110) Long-Term Debt, (Continued) Balance : I June 30. 1
Redevelopment Agency debt due to the City of Carlsbad for capital projects, administration, and accrued interest accumulated since the formation of the Redevelopment Agency in fiscal year
1976-77. Interest is charged and advanced to the Agency each year based on a current year average interest rate. The debt will be paid from future tax increment revenues. In previous years, the debt was shown under Capital Projects Funds.
Obligations under capital leases (note 8)
8,842,9:
522,9:
$ifaaQ& Total General Long-Term Debt
Entermise Fund Long-Term Debt:
1988 Carlsbad Municipal Water District Certificates of
Participation, principal due in varying amounts ranging from $825,000 to $1,425,000 on May 1 of each year through 2004, interest payable on May 1 and November 1 each year at rates varying from 6.7% to 7.3% per annum.
Encina Financing Joint Powers Authority (EFJPA) Installment Purchase Agreement, principal due in varying amounts ranging from $308,722 to $1,049,276 on August 1 of each year through 2014,
interest payable on February 1 and August 1 each year at rates varying from 6.3% to 6.875% per annum.
1993 Carlsbad Municipal Water District loan agreement with the State Water Resources Control Board. Principal is due in varying amounts ranging from $95,854 to $151,558 on November 30 of each
year through 2013, interest payable on November 30 of each year at 2.9% per annum.
In December of 1994, the Golf Course Enterprise Fund purchased
ranging from $195,528 to $335,627 through 2006.
$ 9,865,01
12,125,3
2,289,O
land with accrued assessments. Principal is due in varying amounts
2,781.3
Subtotal enterprise funds 27,060,7
Less unamortized discount and issuance costs (600,2
Less current portion (1.422.8
Total Enterprise Fund Long-Term Debt $25.037.6
Reserve funds of approximately $3,961,000 are required to be held in debt se
funds to secure the payment of principal and interest on the outstanding debt issue
Debt service requirements to maturity for general long-term debt (excli
obligations under capital leases) are as follows: I
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Low-Term Debt. (Continued)
Parking Tax Assessment Certificates HUD
Authority Allocation District of Section 108
Revenue Bonds Bonds Bonds Participation Loan Total
1996 $129,000 1,049,040 897,108 866,733 192,660 3,134,54
1998 - 1,047,659 901,929 860,985 191,198 3,001,77
1999 - 1,048,352 897,715 859,880 191,589 2,997,53
2000 - 1,043,390 900,417 861,030 186,261 2,991,09
2001-2005 - 5,224,162 4,504,532 4,276,330 726,317 14,731,34
10,408,28~ 2006-2010 - 5,212,288 1,800,800 3,395,200 -
14,481.80 2011-2024 - 14.481.801 - - -
129,000 30,152,870 10,800,914 11,979.953 1,683,024 54,745,76
1997 - 1,046,178 898,413 859,795 194,999 2,999,3a
Less amounts
representing
interest (4,000) (14,657,870) 13,845.914) 14,719,953) (483,074) (23,710.81
Total general
long-term debt $125.00Q 15.495.00Q 6.955.ooo 7 ~ 260 .OOQ 1.199,950 31.034.951
Debt service requirements to maturity for the enterprise funds are as follows:
Carlsbad Municipal Encina Carlsbad
Water District Installment Mun i c i pa 1 Golf Course
Certificates of Purchase Water District Accrued
Participation Agreement Loan Payable Assessments Total
1996 $ 1,525,098 1,108,730 159,527 414,076 3,207,43
159,527 415,155 3,207,041 1997 1,524,822 1,107,542
1998 1,524,982 1,106,820 159,527 415,002 3,206,33 I
1999 1,525,122 1,106,426 159,527 416,310 3,207,385
2000 1,524,772 1,106,210 159,527 417,166 3,207,675
2001-2005 6,108,SlO 5,510,332 797,635 1,800,344 14,216,821
2006-2010 - 5,477,844 797,635 273,557 6,549,036
201 1-2015 .. 5,431,438 604,480 - 6,041,918
2,997,385 4,151,610 42,843,643 13,733,306 21,961,342
Less amounts
representing
interest 13,868,306) 19,835,954) f 708,379) (1,370,293) (15,782,932
Total Enterprise
Fund debt %9.865.o00 12.125.388 2 289.006 2.781.317 27,060.7 11
At June 30, 1995, the City was in compliance with all significant debt covenants.
54
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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I (Continued)
(10) Long-Term Debt, (Continued)
On February 1, 1995 all the outstanding 1981 Carlsbad Parking Authority Rev( Bonds were called. Of the $825,000 of bonds outstanding, $725,000 were redee prior to maturity at a total premium of $6,750.
In 1993, the Carlsbad Redevelopment Agency issued $1 5,495,000 in tax allocation b to finance redevelopment activities within the Village Redevelopment Project i and to advance refund $11,185,000 of outstanding 1988 series tax allocation bonds.
Proceeds of $10,964,372 plus an additional $1,709,777 of 1988 series monies were
irrevocable trust with an escrow agent to provide for all future debt service payn: on the 1988 series bonds. As a result, the 1988 series bonds are considered t defeased and the liability for those bonds has been removed from the gel long-term debt account group. At June 30, 1995, $10,550,000 of the defeased bonds were outs tanding.
In November 1988, the Carlsbad Municipal Water District (the District) is $14,370,000 in Certificates of Participation. A portion of the proceeds was use refund $12,000,000 of the outstanding 1984 Certificates of Participation (1984 C( The District deposited funds in an irrevocable trust with an escrow agent to providl all future debt service payments on the 1984 COPs. In May 1994, all outstanding COPs were called.
The College Boulevard Assessment District Bonds were issued under the provisioi the Improvement Bond Act of 1915. The bonds were issued to finance the p infrastructure improvements project on College Boulevard. If a delinquency OCCL
the payment of the assessment installments, the City, at the end of the fiscal ye;
delinquency, has a duty to transfer to the debt service fund the amount of
delinquency out of available funds of the City. Available funds consist of any su funds of the City not required for lawful municipal obligations. This duty of the C. continuing during the period of delinquency, until reinstatement, redemption or sa
the delinquent property. Even though neither the faith and credit nor the taxing p of the City is pledged for the payment of the bonds, the City is obligated in the mz stated above. Accordingly, these bonds have been recorded in the general long- debt account group of the City.
In December 1994 and March 1995, the City purchased land located within the Co Boulevard and Palomar Airport Road Assessment Districts for a municipal golf co The City will pay annual street assessments on the property through the golf c(
enterprise fund. The City is responsible for 29% of the College Boulevard and 27
the Palomar Airport Road annual assessments. At June 30, 1995, the principal bal to be paid from City funds totaled $2,781,317.
to purchase U.S. government securities. Those securities were deposited ir
m
55
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
I1 1) Fund BalancedRetained Earnings
The following is a summary of reserved and unreserved fund balances and retained earnings of June 30, 1995:
Governmental Fund Twes Spec i a 1 Debt Capital
Fund Balances Genera 1 Revenue Service Proiects
Reserved for:
Inventory
- 2,319,955 - - 20,452 - - - Loans receivable $
Prepaid expenditures - 209,514 - -
* - 1,702,620 19,484 Debt service
Low and moderate income housing - 675,883 - -
Rent interruption insurance 131,000 - - -
Advances to other funds 7,051,885 - - 1,700,000
Encumbrances 723.609 199.970 - 1.161.205
7,926,946 3.405.322 1,702.620 2.880.689
Unreserved: - 3,171,157 Designated for future debt service - -
Designated for approved
Designated for continuing capital projects 46 , 000 139,220 - 15,439,444
appropriations 399,010 1,447,080 - - Designated for arbitrage - -
Designated for sales tax payment 413,000 - - - Designated for affordable housing 524,000 - - -
- 13,400
Undesignated 11,754,688 6,440,667 - 24,126,518
13,136,698 8.026.967 3,184,557 39.565,962
Total fund balances $21.063.644 11- 432 ~ 289 4.887.177 42,446-651
Prourietarv Fund T-voes Int erna 1 Service Retained Earnings En t e ru r i s e
Reserved for: Debt service $ 2,258,330 - Rate stabilization and other 276,918 -
- 2,535 , 248
Unreserved 37.646.987 5,572,923
Total retained earnings $40.182.235 5.572.923
56
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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(1 1) Fund BalancedRetained Earnings, (Continued)
Reserves for loans receivable, inventory, prepaid expenditures and advances to ( funds, net of accrued interest recorded as deferred revenue, are established to
that certain assets are already committed to other purposes and are not availabl discretionary expenditures.
Reserves for debt service represent resources legally restricted to the paymei long-term debt principal and interest maturing in future years.
Reserves for low and moderate income housing represent monies required t expended on low and moderate income housing.
Reserves for rent interruption insurance represents monies required to be set under a bond indenture.
Reserves for encumbrances represent commitments related to unperformed cont for services and undelivered goods.
Reserves for rate stabilization and other represent amounts restricted to offset F
water rate increases and other uses.
Unreserved-undesignated represents the fund balance or retained earnings rema after reduction for reserved and designated fund balances or retained earnings.
As of June 30, 1995, the Golf Course Fund had a deficit in retained earnin $688,115. This deficit is expected to be recovered by future user charges.
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I1 2) Changes in Contributed Capital
Int erna 1 Enterprise Service
Contributed capital at June 30, 1994 $81 , 432 , 414 6 , 944,68
Additions: Cash - connection fees 1,702 , 220 -
Cash - residual equity transfer from General Fund 1,80O,OOO -
Fixed assets - 35,26
Reduct ions : Cash - residual equity transfer to
(250.00
Contributed capital at June 30, 1995 $84.934,634 6.729.95
General Fund -
57
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(13) Claims and Judgments
The City is exposed to various risks of loss related to its operations, including losses associated with errors and omissions and injuries to employees and members of the
public. The City uses a General Liability Self-Insurance Fund, a Health Insurance Fund
and a Workers' Compensation Fund (all internal service funds) to account for and
finance its uninsured risks of loss. All funds of the City make payments based on estimates of the amounts needed to pay prior and current year claims and to establish
a reserve for catastrophe losses. The estimated claims payable reported at June 30, 1995 is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a
liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
Changes in the estimated claims payable amounts in fiscal years 1994 and 1995 for the three internal service funds are as follows:
Current Year Claims and Beginning Changes in Claim Ending Balance Estimates Pavmen t s Ba 1 ance
General Liability
Sel f-Insurance Fund:
1993-94 $ 871,157 257 , 480 (511,567) 617,07 1994-95 617,070 (302,673) (135,104) 179,29
Health Insurance Fund:
1993-94 $ 333,000 1,295,596 (1,251,596) 377,OO 1994-95 377,000 1,273,159 (1,282,383) 367,77
Workers' Comuensation Fund:
1993-94 $1 , 008 , 267 607,551 (627,466) 988,35 1994-95 988,352 872 , 269 (845,882) 1,014,73'
58
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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(14) Insurance Coverage
Effective January 1, 1991, the City became a participating member of the PL Agency Risk Sharing Authority of California (PARSAC), a risk-management pool general liability claims. Under this program, the pool provides coverage up 1
maximum of $500,000 per claim with a self-insured retention provided by the City in the amount of $500,000 per claim. In addition, excess general liability insuri coverage up to $10,000,000 is provided. Under the terms of the agreement PARSAC, the City must maintain an unencumbered portion of fund equity equ; $1,500,000. At June 30, 1995, unencumbered fund equity for the General Liak Self-Insurance Fund was approximately $2,500,000.
Health insurance coverage for City employees is provided by either Kaiser, PER: the City plan. The majority of City employees are covered through the City's
which is administered by Northwestern National Life (NWNL). Under the C agreement with NWNL, NWNL will provide coverage for each individual claim
$125,000. If claims for the City as a whole exceed 125% of the average of the prey two months, NWNL will assume payment for the excess amount.
The City is insured for workers' compensation claims by Employers Reinsur
Corporation (Corporation). The Corporation provides coverage for losses u exceeded the City's self-insured retention of $300,000 per claim.
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I (15) Joint Ventures
Encina Water Pollution Control Facility:
The Encina Water Pollution Control Facility (the Facility) is a sewer system 01 jointly by the Cities of Carlsbad and Vista, the Leucadia County Water District Buena Vista Sanitation District, the Vallecitos Water District (formerly the San M:
County Water District) and the Encinitas Sanitary District. The Encina Wasteu Authority (EWA) is the operator and administrator of the facility and is responsiblc the management, maintenance and operations of the joint system. Owne percentages in the facility are determined by joint agreement at the time the a are acquired. As of June 30, 1995, the Cities and Districts have the follo approxi mat e ownership interest:
City of Carlsbad 25%
City of Vista 22% Leucadia County Water District 20% Vallecitos Water District 20%
Encinitas Sanitary District 5% Buena Vista Sanitation District 8%
The latest available financial statements of the EWA, dated June 30, 1995, shov f ollo wing:
Total assets $131,530,504 Total liabilities 3,042.257
Fund balance $128,488,247
59
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
{I 5) Joint Ventures, (Continued)
Encina Water Pollution Control Facility. (Continued)
The EWA does not recognize net income or loss. Net operating expenditures in excess
of users' assessments are treated as accounts receivable on the EWA's books and charged to users' accounts in the following year. Conversely, users' assessments in
excess of net operating expenditures are treated as a liability and credited against users' accounts, also in the following year. Under this basis, net operating expenditures for the EWA totaled $4,032 in fiscal year 1995.
The City accounts for its portion of the Facility as a fixed asset of the Sewer Enterprise Fund.
Encina Financing; Joint Powers Authority:
The Encina Financing Joint Powers Authority (the Authority) was created on February
1, 1989 between the City of Carlsbad, the City of Vista, the Buena Vista Sanitation District and the Leucadia County Water District. The primary purpose of the Authority is to issue revenue bonds in order to finance the expansion of the Facility. Repayment of the bonds will be accomplished through payments made by each member
of the Authority pursuant to installation purchase agreements. The individual
each member.
The Authority is governed by a Board of Directors, which consists of one director appointed by each member. Upon completion, the financial statements of the
Authority can be obtained at City Hall.
In August 1989, the Authority issued $33,500,000 of revenue bonds and executed installment purchase agreements for approximately the same amount. The following is a table of the outstanding balance owed as of June 30, 1995 by each member and their
approximate share in the additional capacity.
agreements set forth the purchase price and specify the debt service requirements for
Installment Approximate
Member Balance Share
Buena Vista Sanitation District $ 6,321,975 19.75% City of Car 1 sbad 12,125,388 37.88% Leucadia County Water District 7,611,978 23.78% City of Vista 5.950.659 18 - 59%
$32.oxo.ooo 100.00%
The installment balances are secured by a pledge of the revenues from each member's wastewater system, net of a deduction for maintenance and operating costs.
Significant covenants within the agreements require the members to maintain
insurance on the facility, and establish wastewater rates which are sufficient to pay
the operating costs and debt service on the bonds and which will result in net revenues
equal to at least 1.1 times the annual installment payments due.
The City's share in the accounts of the Authority is recorded in the Sewer Enterprise Fund. The expansion of the Facility is shown as an addition to the fixed assets of the Sewer Enterprise Fund.
60
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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/16) Retirement Plan
The City contributes to the California Public Employees Retirement System (PERS agent multiple-employer public employee retirement system that acts as a corn investment and administrative agent for participating public entities within the S of California. For the year ended June 30, 1995, the payroll for employees covere the PERS was $20,894,411. Total payroll for the same period was $24,104,567.
All full-time employees are eligible to participate as members of PERS. Benefits after an employee has been a member of the plan for five years. Employees
eligible to retire after ages 50 to 60 with 5 years of credited service. Ar
membership service and the amount of earnings based on the highest tw consecutive months average. The PERS also provides death and disability bene These benefit provisions and all other requirements are established by state statute
Employees are required to make contributions ranging from 7 to 9 percent of 2 pay. The City is required to contribute the remaining amounts necessary to func benefits for its members, using the actuarial basis recommended by the PERS actui and actuarial consultants and adopted by the PERS Board of Administration. employee contributions are made by the City on behalf of the employees.
The amount shown below as the "pension benefit obligation" (PBO) is a standarc disclosure measure of the present value of the pension benefits, adjusted for effects of projected salary increases and step-rate benefits, estimated to be payab the future as a result of employee service to date. The measure is intended to users assess the funding status of the PERS on a going-concern basis, assess pro1 made in accumulating sufficient assets to pay benefits when due, and I comparisons among employers. The measure is the actuarial present value of crec
contributions to the PERS.
The PBO was computed as part of actuarial valuations performed as of June 30, 1 Significant actuarial assumptions used in the valuation include (a) a rate of retux the investment of present and future assets of 8.50 percent a year compou annually (8.5 percent as of June 30, 1990), (b) projected salary increases of 4.5 per a year compounded annually (5 percent as of June 30, 1990), attributable to infla (c) additional projected salary increases of 0.0 percent (2.75 percent for Carlsl safety employees) a year (2 percent as of June 30, 1990 for all employees), attribu
to seniority/merit, and (d) no post-retirement benefit increases. The impac current year contributions from changes in actuarial assumptions is not available.
The total unfunded (overfunded) pension benefit obligation applicable to employees was $13,260,207 at June 30, 1994 (the date of the latest actu valuations) is as follows:
retirement benefits are determined based on age at retirement, the lengtl
projected benefits, and is independent of the funding method used to deter
61
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1 6) Retirement Plan, (Continued)
Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 26,063,013
Current employees: Accumulated employee contributions including allocated investment earnings 18,793,821
Employer financed-vested 16,797,440
Employer financed-nonvested 1,031,078
Total pension benefit obligation 62,685,353
Net assets available for benefits (actuarial value) 75,945.560
Unfunded (overfunded) pension benefit obligation $(13.260,207)
Changes in pension benefit obligation from last year resulted from the following: Changes in benefit provisions -
Changes in actuarial assumptions (2,412,288)
Total -0
The market value of the net assets available for benefits as of June 30, 1994 was $75,717,723.
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. It takes into account those benefits that are expected to be earned in the future as well as those already accrued. According to this cost method, the normal
cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the Entry Age Cost Method in which the employer's total normal cost is expressed as a level percentage of payroll. PERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The amortization period
of the unfunded actuarial liability ends on June 30, 2000.
62
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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I /16) Retirement Plan. (Continued)
The significant actuarial assumptions used to compute the actuarially determ.
contribution requirement are the same as those used to compute the pension ben
obligation, as previously described.
The actuarially determined employer and employee contributions applicable to the ( at June 30, 1995, based on an actuarial valuation as of June 30, 1994, were as folloM
Miscellaneous Safety Emuloyees Emu 1 oyee s
Covered Cover e Contributions Payroll Contributions Payrol
Required normal cost contribution $2,120,497 15.38% 1,625,964 22.87oX
Amortization of the
unfunded actuarial accrued liability 57.344 .42% (52,760) (. 749
Total required contributions $2,177.841 15.80% 1,573. 204 22.13t
Actual employer contributions $1,213,679 8.81% 910,851 12.819 Contributions made by the City on behalf of employees 964.162 6.99% 662.353 9.329
Total actual contributions $2,177.841 15.80% 1.573. 204 22.135
63
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(16) Retirement Plan, (Continued)
The following is a three-year trend information which gives an indication of the progress
made in accumulating sufficient assets to pay benefits when due:
1994 1993 1992
Net assets available for benefits as a
percentage of pension benefit obligation 121.2% 100.8% 94.6%
Unfunded (overfunded) pension benefit
obligation as a percentage of
annual covered payroll 63.46% (2.1%) 13.0%
Actuarially determined employer contributions
as a percentage of annual covered payroll lo.% 11.5% 12.4%
Ten-year trend information is not currently available from the California Public Employees Retirement System; therefore, only the available information is presented.
Required Supplementary Information
Analvsis of Funding Progress (Unaudited)
Actuarial Net Assets Unfunded Unfunded Pens ion
Valuation Available Pens ion (Overfunded) Annual Benefit Obligation
as of for Benefits, Benefit Percentage Pension Benefit Covered as a Percentage of
June 30 at Cost Obligation Funded Obligation Pavroll Annual Covered Payrol
1987 $24,678,600 $26,908,600 91.7% $ 2,230,000 $12,973,300 17.2%
1989 34,123,100 36,363,400 93.8% 2,240,300 16,404,700 13.7%
1990 40,418,900 42,870,400 94.3% 2,451,500 18,739,300 13.1%
1991 46,179,400 49,352,600 93.6x 3,173,100 21,903,500 14.5%
1992 52,901,000 55,768,800 94.9% 2,867,800 22,249,000 12.9%
1994 75,945,500 62,685,300 121.2x (13,260,300) 22,038,100 (60.2%)
1988 29,366,800 31,190,600 94.2% 1,823,800 14,130,300 12.9%
1993 60,607,800 60,097,500 100.8% (510,300) 22,238,900 (2.3%)
64
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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(17) Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance Internal Revenue Code Section 457. The plan, available to substantially all full-
employees, permits them to defer a portion of their salary until future years. Amc
deferred may not exceed the lesser of $7,500 or 25% of a participants' "incluc compensation," as defined in the participation agreement. The deferred compens: is not available to employees until termination, retirement, death or unforesee emergency.
All amounts of compensation deferred under the plan, all property and rights purch with those amounts, and all income attributable to those amounts, property or r are (until paid or made available to the employee or other beneficiary) solely property and rights of the City (without being restricted to the provisions of ben
Participant's rights under the plan are equal to those of general creditors of the Ci an amount equal to the fair market value of the deferred account of each participa
The City believes it has no liability for losses under the plan but does have the du, due care that would be required of an ordinary prudent investor. The City belj that it is highly unlikely that it will use the assets to satisfy the claims of gel
under the plan), subject only to the claims of the City's general credi
I creditors in the future.
(18, Post-Retirement Health Care
In addition to the pension benefits described in Note 15, the District, in accord
with the District's Administrative Code, provides post-retirement health care ben to its full-time employees (including their dependents) who voluntarily retire aftei age of 50 with no less than 5 years of service and whose age combined with yea service equals 70 or more. Currently, five retirees meet these eligibility requiren
and are receiving benefits.
The District is to pay 100% of the premiums for health insurance which is t coordinated with Medicare and other benefits provided by federal and state law, available, to the extent it reduces the cost of insurance premiums. Expenditure post-retirement health care benefits are funded on a pay-as-you-go t Expenditures of approximately $1 2,000 were charged to expense for post-retire
health care costs during 1995. Based on an actuarial valuation performed a November 1991, the District's liability for the current and past service costs of 1 benefits is approximately $1,600,000.
65
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
11 9) Segment Information for Enterprise Funds
The City maintains four enterprise funds that provide water, sewer and other services. Segml information for the year ended June 30, 1995 is as follows:
Car 1 sbad Mun i c i pa 1
Di strict Course Sewer Waste Totals Water Go1 f Sol id
Operating revenues $14,048,285 - 4,936,740 108,853 19,093,87
Operating expenses:
Depreciation and 1,223,605 328 2,330,64 Other 11,583,405 402.518 3,389,236 116.373 15.491.53
Operating income (loss) 1,358,171 (402,518) 323,899 (7,848) 1,271,70
Nonoperating income
amortization 1,106,709 -
(expenses), net 1,021,509 109,308 371,700 64,678 1,567,19
Operating transfers out (50,000) - (50,000) - ~lO0,OO
Net income (loss) $ 2.3 29.680 (293 ~ 210) 645 , 599 56.830 2.738,89
Contributed capital:
Beginning balance $40,987,504 2,425,190 38,019,720 - 81,432,41 Current year additions 999.984 1,800,000 702.236 - 3,502.22
84.934: 63 Ending balance $41.987 , 488 4,225,190 38,7 21.956 -
Property, plant and equipment: - 16.355.23
De 1 e t i ons $ 4.764.738 2.498.39 4 440.110 - 7.703.24
Net working capital $18,750.357 1.172.682 20.739.3 16 126,447 40.788.80
Debt payable from
operating revenues $12,060.39 2 2,781,317 12.125,388 - 26 ~ 967 ~ 09’
Total assets $77,250,416 6,318,853 72,902,875 136,252 156,608,39(
Total liabilities 14,080,268 2.781.778 14,620,659 8,822 31.491.52’
Total equity $63,170.148 3.537?075 58. 282.216 127,430 125.116.86:
Additions $ 7.931.17’2 7.420.682 1.003.372
66
I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued) 1
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(20) Special Assessment Bonds Without Government Commitment
As of June 30, 1995, the City has four series of Assessment District Bonds outstan in the amount of $20,564,017. These bonds were issued under the provisions of
Improvement Bond Act of 1911 and 1915 and were used to finance public infrastruc improvement projects. Reserve funds of approximately $2,301,000 are held to se payment of principal and interest on the outstanding bonds.
For the bond issuances noted above, the City is not obligated in any manner for
payment of debt service in the event of default by the property owners but is
acting as agent for the property owners in collecting the assessments, forwardini collections to bondholders, and initiating foreclosure proceedings, if appropr Accordingly, no liability for these bond issuances has been recorded in the Gel Long-Term Debt Account Group and all debt service transactions have been recc in an Agency fund.
The Golf Course Enterprise Fund of the City has acquired property subject to sp assessments associated with these bonds. The Golf Course Fund's obligation for 1
assessments has been reflected in the accompanying financial statements as a liat of that fund.
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Single-Family Mortgage Revenue Bonds have been issued to provide funds to purc mortgage loans secured by first trust deeds on newly-constructed and exi single-family residences. The purpose of this program is to provide low interest home mortgage loans to persons of low or moderate income who are unable to qu for conventional mortgages at market rates. Multi-Family Housing Revenue Bond! issued to provide construction and permanent financing to developers of multi-fz residential rental projects located in the City to be partially occupied by persor
low or moderate income.
On September 27, 1994, the Carlsbad Housing and Redevelopment Commissic component unit of the City of Carlsbad, issued $15,115,000 in revenue bonds.
bonds were issued to refund the Carlsbad Housing and Redevelopment Commi
$16,215,000 Multifamily Housing Revenue Bonds Series 1985 B (Seascape Vj Project). The original developer defaulted on the debt and the bond ins Continental Casualty Company (CCC) foreclosed. In December 1993, CCC soh project to Seascape Apartments, Inc., a corporation formed by CCC to take ove project. The refunding was completed at the request of the new property ownei resulted in more favorable rents for low income tenants and an annual administr fee paid to the Redevelopment Agency. The variable interest rate is establ
weekly.
On September 9, 1994, the City of Carlsbad redeemed the outstanding 1983 S Family Residential Mortgage Revenue Bonds. The purpose of the program Wi provide affordable housing to first-time homebuyers with average and below avc income levels. The outstanding bonds were paid using the proceeds from the sa
the mortgages with the remaining amount of approximately $585,000 paid to the C 1
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(21) Mortgage Revenue Bonds. (Continued)
The balance of the revenue bonds outstanding under these programs as of June 30, 1995 is $31,035,000. The bonds, together with interest thereon, are limited obligations of the City payable solely from bond proceeds, revenues and other amounts derived solely from home mortgage and developer loans secured by first deed of trust, irrevocable
bonds are not payable from any revenues or assets of the City, and neither the full
faith and credit nor the taxing power of the City of Carlsbad, the state of California, nor any political subdivision thereof, is obligated to the payment of the principal or interest on the bonds. Accordingly, no liability has been recorded in the General Long-Term Debt Account Group.
letters of credit, and irrevocable surety bonds. In the opinion of City officials, these
(22) Industrial Development Bonds
The Industrial Development Authority (Authority) of the City has issued $3,270,000 in Industrial Development Revenue Bonds. Any costs relating to the issuance of the
Bonds, as well as the principal and interest payments, are to be paid by the private
party benefitting from the Bond issue.
(23) Commitments and Contingencies
The City is a defendant in certain legal actions arising in the normal course of operations. In the opinion of management and legal counsel, any liability resulting from these actions will not result in a material adverse effect on the City's financial position.
In May 1993, the City of Carlsbad entered into an agreement with the San Diego Association of Governments (SANDAG), whereby SANDAG will loan up to $1 0,000,000 of TransNet local funds to the City of Carlsbad on a reimbursement basis. The funds are to be used by the City of Carlsbad to accelerate the implementation of the Poinsettia Lane and La Costa Avenue/I-5 Interchange Improvement Project. No money was borrowed under this agreement during the year ended June 30, 1995.
(24) Accounting Changes
The accompanying financial statements reflect certain accounting changes. The change to the General Fund reflects changes in the accrual of taxpayer-assessed
revenues in order to comply with GASB Statement No. 22. The change to the Capital Projects Fund reflects a reclassification of the advances owed by the Redevelopment
Agency in the Capital Projects Fund to the General Fund. These advances are accounted for in the General Long-Term Debt Account Group.
68
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
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124) Accounting Changes, (Continued)
General Fund Capital Proiects Fi
Fund balances at July 1, 1994, I as previously reported $18 , 982,903 27,515,464
Changes in the accrual of taxpayer-
Reclassification of advances to the
571 , 527 - assessed revenues
general long-term debt account group - 8.369,823
35.885.287 as restated $19.554.430 Fund balances at July 1, 1994,
(25) Expenditures in Excess of ADpropriations
Expenditures for the year ended June 30, 1995 exceeded appropriations of the folia funds: Var i ance- Favorable
Budget Act ua 1 (Un f avor ab 1
Community Development Block Grant $ - 22 , 886 (22,886) Special Revenue Funds:
(26) Participation in San Dieno Association of Governments (SANDAG)
The City is a member of the San Diego Association of Governments (SANDAG), a powers agreement for the purpose of engaging in regional cooperative comprehe planning, to assist the Member Agencies, and to provide a regional revic organization for certain federal and state grant projects.
SANDAG is currently comprised of 18 incorporated Cities from the San Diego r and the County of San Diego.
Summary financial information for the year ended June 30, 1994 is presented as fo
I
Total general fixed assets $ 1,834,509 Total other assets 419,231,274 Total general long-term debt 598,034,954 Total other liabilities 66,382,976 Total fund equity 354,682,807 Total revenues 145,903,615 Total expenditures/expenses 314,680,209 Total other financing sources (uses) 69,705,424
Net increase (decrease) in fund balance/retained earnings (99,071,170)
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The general fund is used to account for resources traditionally associated with govern
which are not required legally or by sound financial management to be accounted f
another fund.
71
CITY OF CARLSBAD General Fund
Schedule of Revenues - Budget and Actual (Budgetary Basis)
Year Ended June 30, 1995
Actual on Variance- Budgetary Over Budnet Bas is (Under)
Taxes : Property taxes $10,900,000 10,889,368 (10,632) Sales and use taxes 10,990,000 11,399,568 409,568 Transient lodging taxes 3,100,000 3,252,270 152,270 Franchise taxes 1,340,000 1,399,151 59,151 Real property transfer taxes 220,000 235.455 15.455
Total taxes 26,550.000 27.175.812 625.812
Licenses and permits: Construction permits 550,000 644,131 94,131 Business licenses 1,212 , 000 1,245,830 33,830 License tax on new construction 75,000 113,118 38,118 Other 355.000 389.191 34,191
Total licenses and
permits 2,192,000 2,392.270 200.270
In t e rgovernmen t a 1 :
State subventions:
Grant revenue - 42.660 42.660
Vehicle license fees 2,073,000 2,385 , 855 312,855 Property tax reimbursements 199,000 234,045 35.045
Total state subventions 2,272.000 2.61 9.900 347.900
Charges for services: Planning fees 721 , 000 803,352 82,352 Building department fees 434,000 482,904 48,904 Engineering fees 743,000 936 , 072 193,072
339,000 353,016 14,016 Ambulance fees
Park and recreation fees 675,000 706,559 31,559
Property rentals 128,000 164,076 36 , 076 Other 510,000 532.686 22,686
Total charges for
s ervi ces 3.550.000 3.978.665 428,665
(Con t i nued )
72
CITY OF CARUBAD General Fund
Schedule of Revenues - Budget and Actual
(Budgetary Basis)
(Continued)
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Budget Bas i s (Unde
Fines and forfeits: Vehicle code fines 244,000 237,338 (6,66
Other - 26.073 26.07
Total fines and forfeits 244,000 263,411 19.41 4 Interest income 1,177,000 1,311,791 134.79
Interdepartmental services:
Engineering 657,000 687,157 30,15
Legal - 15,979 15,97
Other 1,500,000 1,600.199 100.19
Total interdepartmental services 2,157,000 2.303.335 146.33
Miscellaneous: Sales of maps and publications - 35,505 35,50
Sales of property - 8,507 8,50
Reimbursed expenditures - 331,947 331,94 ! Other 850,000 791,966 (58.03
Total miscellaneous 850,000 1,167,925 317,92
Total revenues $38.992.o00 41,255.769 2.263.76
73
CITY OF CARLSBAD
General Fund
Schedule of Expenditures - Budget and Actual (Budgetary Bas i s )
Year Ended June 30, 1995
Actual on Variance- Budgetary Over Budget Bas is (Under 1 General government:
City council 169,448 164 , 648 (4 , 800 1
City manager 793,345 793 , 234 (111) City clerk 138 , 900 136,435 (2 , 465) Visitors' bureau 243 , 902 243,898 (4) - Community assistance 137 , 300 137,300
Hiring center 80,000 64,378 (15 , 622) City attorney 478,719 448,033 (30,686)
Finance 1,058,137 1,002 , 043 (56,094)
City treasurer 101 , 959 65,376 (36,583)
Audit 69,754 57 , 846 (11,908)
Human resources 862,190 800 , 214 (61 , 976) Information systems 399,223 385,513 (13,710) Contingency 117,621 - (117,621) Other 1.394.161 597.770 (796.391)
Total general government 6,403.716 5,236.894 (1,166,822)
Police protection 8,971,356 8 , 692,611 (278 , 745) Fire protection 6,863,313 6,857,808 (5.505)
Total public safety 15.834.669 15,550.419 (284.250)
(108,690) Community development 954 , 504 845 , 814 Engineering 3,293,204 3,209,143 (84,061) P 1 ann i ng 2 , 185,272 1,909,761 (275,511 )
Building inspection 782,950 730,149 (52,801)
deve 1 opmen t 7.215.920 6.694 - 867 (521 -063)
Library 2,487,684 2 , 397,929 (89,755) Arts program 267,601 264,482 (3.119)
Total library and the arts 2,755,285 2.662.41 1 (92,874)
Purchasing 359,057 340,206 (18,851 )
Public safety:
Community development:
Total community
Library and the arts:
Community services:
Administration 649 , 452 641,414 (8 9 038) Parks and recreation 3,463 , 277 3,455,430 (7 7 847 1
Building maintenance 1,379,421 1,344 , 067 (35 , 354)
Street lighting 28,000 27,997 (3 1
Total expenditures $39.687.092 37.447.907 (2.239. 185)
Street maintenance 1,608,792 1 , 513,522 (95,270 )
Traffic signal maintenance 348 , 550 320,886 (27,664)
Total community services 7.477.492 7.303.316 (174,176)
74
CITY OF CARLSBAD
General Fund
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Year Ended June 30, 1995
1994 1995 Increasl
Actual Actual (Decr eas 1
General government: City council $ 160,166 163 , 272 3,11 City manager 744,963 779,608 34,61
City clerk 21 , 554 38,435 16,s
Visitors' bureau 222 , 702 215 , 847 (0 Community aFsistance 108 , 668 137 , 300 28,6< Hiring centgr 76 , 967 64 , 378 (12,5 City attorney 370 , 109 450 , 286 80,l Finance 993,163 968 , 880 (2472 City treasurer 79 , 595 65 , 376 (14,2 Audit 26 , 823 26,430 (3 Purchasing 338 , 910 333 , 807 (5 7 1'
Information systems 388 , 402 386,101 (2 , 3'
Human resources 571 , 196 698 , 617 127,4
Other 538.203 588.745 50.5
Total general government 4.641.421 4,917,082 275.6
Public safety: Police protection 8 , 760 , 470 8 , 696,676 (6377 Fire protection 6,986,554 6.793.846 (192,7
Total public safety 15,747,024 15,490,522 (256,5
Community development 705 , 990 769 , 485 63,4 Engineering 3 , 004 , 240 3 , 027,248 23,O
Building inspection 702.467 733.692 31.2
Total community development 6,313.757 6,378.074 64.3
' Community development :
P 1 ann ing 1 , 901 , 060 1 , 847,649 (5374
Library and the arts:
Library 2 , 447 , 865 2,398,418 (4994 Arts program 234.075 254,514 20.4
Total library and the arts 2.681.940 2,652,932 (29.0
Administration 716 , 951 641 , 190 (7577 Parks and recreation 3,439 , 334 3 , 422 , 769 (1695 Street maintenance 1,350,169 1,476,027 125 , 8 Building maintenance 1 , 186 , 463 1 , 116 , 823 (69,6
Street lighting 28.000 27,997
Community services:
Traffic signal maintenance 278,404 286,163 7,7
Total expenditures $36.383.463 3_6.409.579 26.1
Total community services 6.999.321 6.970.969 128.3
75
CITY OF CARLSBAII General Fund
Comparative Schedule of Revenues
Year Ended June 30, 1995
1994 1995 Increase
Actual Actual (Decrease)
Taxes : Property taxes $11,123,765 10,889,368 (234,397)
Sales and use taxes 10,840,115 11,399,568 559,453
Transient lodging taxes 3,153,084 3,252,270 99,186 Franchise taxes 1,183,310 1,399,151 215,841 Real property transfer taxes 209,251 235,455 26,204
Trailer coach in-lieu tax 1,480 - (1,480)
Total taxes 26,511.005 27,175.812 664.807
Licenses and permits: Construction permits 365,571 644,131 278,560
Business licenses 1,093,827 1,245,830 152,003 License tax on new construction 44,496 113,118 68,622 Other 318.381 389.191 70.810
Total licenses and permits 1.822.275 2,392.270 569.995
Intergovernmental: Grant revenue 28,384 42.660 14,276
State subventions: Vehicle license fees 2,628,592 2,385,855 (242,737) Property tax reimbursements 233.887 234,045 158
Total state subventions 2.862,479 2,619,900 (242,579)
Charges for services: Planning fees 459,509 803,352 343,843 Building department fees 275,156 482,904 207,748 Engineering fees 656,108 936,072 279,964 Ambulance fees 342,829 353,016 10,187 Park and recreation fees 747,043 706,559 (40,484) 164,076 (26,816) Property rentals 190,892 Other 398,267 532,686 134.419
Total charges for services 3,069,804 3,978.665 908.861
(Continued)
76
CITY OF CARLSIPAD General Fund
Comparative Schedule of Revenues
(Continued)
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Actual Actual (Decreasc
Fines and forfeits: Vehicle code fines 227 ? 559 237 % 338 9,7'
Other 3. B95 26.073 22.1'
Total fines and forfeits 231.454 263.41 1 31.91
Interest income 1,465,717 1.311.791 (153.9:
Interdepartmental services:
Engineering 732,699 687,157 (45,54
Legal 13 ? 824 15,979 2,l:
Other 1,647,053 1,600.199 (46,8!
Total interdepartmental services 2,393.576 2,303,335 (90,21
Miscellaneous: Sales of maps and publications 43? 089 35,505 (7,s
Sales of property 15,044 8 9 507 (6,5:
Reimbursed expenditures 206,517 331,947 125,4: 677.81 Other 114.121 791.966 1 Total miscellaneous 378,771 1,167,925 789.1
Total revenues $38.763. 465 41,255.769 2.492.31
77
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues whose expenditures are restricted by law or administrative regulation to specified purposes.
Affordable Housing
To account for receipts of fees charged to developers to provide funding assistance for affordable housing needs of lower and moderate income households.
Civic Arts Program
To account for transfers from the General Fund to support the civic arts program.
Community DeveloDment Block Grant
To account for federal block grants for commercial and residential loans for community development.
Federal Grants
To account for federal grants received to support the City's library programs and habitat preservation.
Gas Tax
To account for receipts and expenditures of money apportioned under Streets and Highways
Code of the state of California.
Library Audio-visual Insurance
To account for revenues and expenditures on rental of audio-visual material.
Low and Moderate Income Housing
To account for money administered by the Carlsbad Redevelopment Agency for designated
low and moderate income housing.
Mobilehome Rent Control
To account for transfers from the General Fund to support mobilehome rent control, Fund
closed to General Fund during year.
Police Asset Forfeiture
To account for money received under federal and state programs distributing property
confiscated from illegal activities.
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Section 8 Housing Authority
To account for federal grants for low and moderate income rental assistance payments.
Senior Nutrition
To account for money received and expenditures for senior programs under the ( Americans Act.
Special Benefit Districts
To account for revenues and expenditures from property tax assessments for street lig and landscaping.
I State Grants
To account for state of California Library and Civic Arts grants.
79
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30, 1995
Civic Community Library
Affordable Arts Development Federal Gas Audio-visual
Housing Program Block Grant Grants Tax Insurance
Assets
Cash and investments $823,665 331,622 20,092 13,020 3,333,060 86,993
Receivables: - - 5,568 - - - Loan
Taxes
Accounts, net
Accrued interest 11,369 4,940 - 508 48,877 1,413
- - - - - -
- - - - - -
Due from other governments - - - 9,058 - -
Prepaid expenditures - - - - - -
Total assets $835.034336.562 25.660 22.5863.381.93788.406
Liabilities and Fund Balances
Liabilities:
Accrued liabilities $- - - 5,532 15,325 5,893
Due to other governments - - - - - -
Due to other funds - - - - - -
- - 5,532 15,325 5,893 Total liabilities -
Fund balances:
Reserved for prepaid expenditures - - - - - -
Reserved for loans receivable - - 5,568 - - -
Reserved for low and
moderate income housing - - - - - -
Reserved for encumbrances - 82,000 - 7,353 28,361 1,991
Unreserved:
Designated for continuing
appropriations - - - 11,261 1 , 332,200 -
capital projects - 139,220 - - - - Designated for approved
Undesignated 835,034 115.342 20.092 11,560) 2,006,051 80,522
Total fund balances 835.034 336,562 25,660 17,054 3.366.612 82,513
Total liabilities and
fund balances 5835.034336.562 25.660 22.586 3.381.937 88.406
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Low and
Moderate Pol ice Secfion 8 Special
Hous ine. Forfeiture Authoritv Nutrition Districts Grants Totals
Income Asset Housing Senior Benefit State
670,309 1,214,801 230,029 - 2,066,200 286,849 9,076,640
2,314,387 - - - - - 2,319,955
8,666 - - - 35,760 - 44,426 - 43,750 23,049 879 10,078 - 77,756
9,792 18,421 - - 31,349 4,603 131,272 - - 26,009 34,440 - 56,476 125,983 - - 209,514 - - - 209.514
3.003. 154 1.276,97 2 488.601 35.319 2.143.387 24732.8 11.985.5 46
- - - - - - -
15,207 88,910 26,376 214,407
- - 279,361 20.112 - - 299,473
10,840 21,097 343,965 35,319 88,910 26,376 553,251
10,840 21,097 25,227 - - 39,377 - - - 39,377
- - 209,514 - - - 209,514
2,314,387 - - - - - 2,319,955
675,883 - - - - - 675,883
2,044 21,123 27,805 - 18,734 10,559 199,970
- 64,023 - - 11,000 28,596 1,447,080
- - - - - - 139,220 - 1,170,729 192.683) - 2.024.743 282.397 6,440.667 I 2.992.314 1,255,875 144.636 - 2,054.477 321.552 11,432,289
3.003.15 4 1.276.97 2 488.60 1 2553x2 2.143 ~ 387 347.928 11985.5 46
81
CITY OF CARISBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1995
Civic Community Library
Affordable Arts Development Federal Gas Aud i 0-V i sua 1
Housina Program Block Grant Grants Tax Insurance
Revenues : - - - 1,199,829 - Taxes $- Intergovernmental - - - 123,602 - -
Charges for services 552,905 - - - - 102,395
Interest income 42,369 17,457 862 1,321 171,876 4,633
Miscellaneous - - - - - -
Total revenues 595.274 17.457 862 124.923 1,371.705 107,028
Expenditures:
Current:
Public safety - - - - - -
Housing and welfare - - 22,886 - - -
Community services - - - 41.085 801,674 - Library and the arts - - - 76,859 - 146,255
Total expenditures - - 22,886 117,944 801,674 146.255
Excess (deficiency) of
revenues over (under)
expenditures 595.274 17,457 (22.024) 6.979 570,031 (39,227)
Other financing sources (uses):
I I Operating transfers in - 5,005 - - - 1167) /lS,OOO) Operating transfers out - - -
Total other financing - (167) I15.000) sources (uses) - 5 3 005 -
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses 595,274 22,462 (22,024) 6,812 555,031 (39,227)
Fund balances at beginning of
year 239,760 314,100 47,684 10,242 2,811,581 121,740
- - - Residual equity transfers out - - -
Fund balances at end of year $835.034- 25.660 17.0543.366.61282.513
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Low and
Moderate Mobilehome Police Section 8 Special
Bous ine Control Forfeiture Authoritv Nutrition Districts Grants Totals
Income Rent Asset Housing Senior Benefit Stat e
1,489,561 - - 44,353 2,836,422 106,083 - 321,273 3,431,731
2,266,38! - - - - - 1,611,089 -
49,577 1,204 64,720 14,131 - 102,795 14,034 484,97!
174 275 49.545 185.674 86.275 12,358 10.000 344.30:
339.490 1.479 158.618 3.036.227 192.358 1,726,242 345.307 8.016.97(
- - - - 289,739 - -
- - 425,156 - - - - 425,15(
67,729 1,516 - 3,023,020 194,512 - - 3,309,66: - - - - - - 284,083 507,19'
2,218.39' I 67.729 1.516 425.156 3.023.020 194,512 1,375,640 284,083 6,460.41
- 1,375,640 - - - - -
271,761 (37) f266.538) 13,207 (2,154) 350,602 61.224 1,556.55
- - 5,OO - - - {15.16
- - - - - - - - -
- - f10.16 - - - - -
I 271,761 (37) (266,538) 13,207 (2,154) 350,602 61,224 1,546,39
2,720,553 40,342 1,522,413 131,429 2,154 1,703,875 260,328 9,926,ZO
- - 140.30 I 2.992.314 - 1.255.875 144.636 - 2.054.477 321.552 11. 432.28
- (40,305) - - -
-
83
CITY OF CARISBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
Year Ended June 30, 1995
Affordable Housing Civic Arts Program
Actual on Variance- Actual on Variance-
Rudge t ary Over Budgetary Over
Budget Basis (Under) BudRet Basis [Under)
Revenues : - - - - - Taxes $- Intergovernmental - - - - - -
Charges for services - 552,905 552,905 - - -
Interest income - 42,369 42,369 - 17,457 17,457
Miscellaneous - - - - - - --
Total revenue - 595.274 595,214 - 17,457 17,457
Expenditures:
Current:
Public safety - - - - - -
Housing and welfare - - - - - -
Community services - - - - - - Library and the arts - - - 221,200 82,000 (139,220)
~~
Total expenditures - - - 221.220 82,000 (139,220)
Excess (deficiency) of
revenues over (under)
expenditures L 595.274 595.274 (221.220) (64.543) 156.677
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Community Development Block Grant Federal Grants
Actual on Variance- Actual on Variance-
Budgetary Over Budgetary Over
Budget Basis (Under) Budget Basis (Under 1
- - - - - - - - - 123,186 123,602 416
- 862 862 - 1,321 1,321
- - - - - -
- - - - - - - -
- 862 862 123.186 124.923 1.737
- - - - - - - 22,886 22,886 - - -
* - - 89,603 89,603 - - - - 46.955 46,955 - - -
- - 22,886 22,886 136.558 136 * 558 - -
- - (22.024) (22.024) (13.372) (11.635) u
85
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1995
Gas Tax Eibrarv Audio-visual Insurance
Actual on Variance- Actual on Variance-
Budgetary Over Budgetary Over
Budget Basis (Under 1 Budget Basis [Under)
Revenues :
Taxes $ 1,130,000 1,199,829 69,829 - - -
Intergovernmental - - - - - -
Charges for services - - - 90,000 102,395 12,395
Interest income 80,000 171,876 91,876 5,000 4,633 (367) Miscellaneous - - - - - - ~-
Total revenues 1,210,000 1,371,705 161,705 95,000 107.028 12,028
Expenditures:
Current : - - - - - Public safety -
Housing and welfare - - - - - -
Community services 2,344.544 2,162,235 (182.309) - - - Library and the arts - - - 168,265 148,246 (20,019)
Total expenditures 2,344,544 2,162,235 (182,309) 168,265 148,246 (20,019)
Excess (deficiency) of
revenues over (under)
expenditures $11,134.544) (790.53Q) 344.014 473.265) 441.218) 32.047
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I c 292.500 269.717 (22.783) (1.516) 43) 1.479
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Low and Moderate Income Housing Mobilehome Rent Control
Actual on Variance- Actual on Variance-
Budgetary Over Budgetary Over
Budget Basis (Under I Budget Basis (Under)
323,000 289,739 (33,261) - - -
8 - I - - - - - - - - - -
74,500 49,577 (24,923) - 1,204 1,204 - 174 174 - 275 275
397,500 339.490 (58,010) - 1.479 1.479
-
- - - - - -
105,000 69,773 (35,227) 1,516 1,516 - - - - - - - - - - - - - - ~ -
105,000 69,773 (35,227) 1,516 1,516 - -
87
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Cont hued
Year Ended June 30, 1995
Police Asset Forfeiture Section 8 Housing Authority
Actual on Variance- Actual on Variance-
Budgetary Over Budgetary Over
Budget Basis [Under I Budget Bas is (Under)
Revenues : - - - - - Taxes $-
Intergovernmental 181,000 44,353 (136,647) 3,210,000 2,836,422 (373,578)
Charges for services - - - - - -
Interest income 29 , 000 64 , 720 35 , 720 8,000 14,131 6,131
Miscellaneous - 49.545 49.545 190,000 185,674 (4,326)
Total revenues 210.000 158.618 451.382) 3,408.000 3,036,227 (371.773)
Expenditures:
Current:
Public safety 510,302 510,302 - - - -
Library and the arts - - - - - -
Community services - -
Housing and welfare - - - 3,229,027 3,050,825 (178,202)
- - - -
Total expenditures 510,302 510.302 - 3,229,027 3,050.825 (178,202)
Excess (deficiency) of
revenues over (under)
expenditures -1 (351.684) 151.382) 178.973 114.598) (193.571)
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1 12.045) 12.154) 1109) 1292.135) 320.868 613.003
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Senior Nutrition Soec ial Benef i t D i st r i c t s
Actual on Variance- Actual on Variance-
Budgetary Over Budgetary Over
Budget Basis (Under ) Budget Basis (Under)
- - - - - -
113,594 106,083 (7,511) - - - - - - 1,581,140 1,611,089 29,949 - - - 34,000 102,795 68,795
84,889 86.275 1.386 2 * 000 12,358 10,358 1 198,483 192,358 (6,125) 1.617.140 1,726,242 109.102
- - - - - -
200,528 194,512 (6,016) - - - - - - - - -
- - - 1,909.275 1,405,374 (503,901)
200.528 194,512 (6,016) 1,909,275 1,405,374 (503,901)
-
89
CITY OF WBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1995
State Grants Totals
Actual on Variance- Actual on Variance-
Budgetary Over Budgetary Over
Budnet Bas is (Under 1 Budnet Basis (Under)
Revenues :
Taxes $- - - 1,453,000 1,489,568 36,568
Intergovernmental 245,342 321,273 75,931 3,873,122 3,431,733 (441,389)
Charges for services - - - 1,671,140 2,266,389 595,249
Interest income 5,000 14,034 9,034 235,500 484,979 249,479
Miscellaneous 10.000 10.000 - 286.889 344.301 57.412
Total revenues 260.342 345,307 84.965 7,519.651 8,016,970 497.319
Expenditures:
Current:
Public safety - - - 510,302 510,302 -
Housing and welfare - - - 3,536,071 3,339,512 (196,559)
Library and the arts 356,396 323,238 (33,158) 835,484 643,087 (192,397)
Community services - - - 4.300.774 3,614,564 (686,210)
Total expenditures 356,396 323,238 J33,158) 9,182,631 8,107,465 (1,075,166)
Excess (deficiency) of
revenues over (under)
expenditures $(96.054) 22.069 118.123 (1.662.980 1 190.495) 1.572.485
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DEBT SERVICE FUNDS
Debt Service Funds are used to account for accumulation of resources for, and payme principal and interest on the City's general bonded debt and special assessment bonc which the City is obligated in some manner.
College Boulevard
To accumulate property assessments levied for payment of debt service on 1986 Cc
Boulevard Assessment District Bonds.
Hosp Grove COPS
To account for payment of debt service on the 1988 Certificates of Participation issL I purchase Hosp Grove.
Parking Authority
To account for lease payments received by the Parking Authority from the General Fur payment of debt service on 1969 and 1981 Parking Authority Revenue Bonds.
Redevelopment Bonds
To account for payment of debt service on bonds issued to finance improvements fc
Carlsbad Redevelopment Agency.
93
CITY OF UBAD Debt Service Funds
Combining Balance Sheet
June 30, 1995
Hosp Col1 ege Grove Parking Redevelopment
Boulevard COPS Authority Bonds Totals
Assets
Cash and investments $1,909,731 874,838 179,788 1,766,404 4,730,71 Receivables:
Taxes 17,555 - - 34,663 52,2 - - 22,ll Account s 22,187 -
6,570,01 Special assessments 6,570,000 - -
Accrued interest 18.232 29,987 3.484 30.308 82.0
Total assets $8.537.705904.825 183.272 1.83 1,375 11.457 ~ 1'
-
Liabilities and Fund Balances
Liabilities:
- - 6,570,0(
- - 6,570.0(
Deferred revenue $6,570,000 -
Total liabilities 6,570,000 -
Fund balances:
Reserved for bond requirements 765,620 869,000 68,000 - 1,702,6: Unreserved:
13,400 - - 13,4(
service 1.202.085 22.425 115.272 1.831.375 3.171. l!
Total fund balances 1,967.705 904.825 183.272 1.831.375 4,887.1;
Total liabilities and fund
Designated for arbitrage - Designated for future debt
ba I ances $8.537.705904.825 183.272 JeLaLLEm
94
CITY OF CARLSBAD Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year.Ended June 30, 1995
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Boulevard COPS Author i tv Bonds -
Taxes $1,509,894 - - 1,158,957 2
Interest income 171,941 74,385 37,777 116,748 - - 470 -
Total revenues 1,681,835 74.385 37,777 1.276.175 3
Revenues :
Expenditures: I Debt service: Principal retirement 335,000 295,000 950,000 19,515 1 Interest and fiscal charges 587,372 575,857 87 , 970 1,353,081 2 State mandated payment - - - 92,495 -
Total expenditures 922,372 870,857 1.037,970 1,465,091 4
Excess (deficiency) of
revenues over (under) expenditures 759,463 (796,472) (1.000.193) (188,916) (1 I Other financing sources (uses):
Proceeds of advance - - - 502,908 1 (528.300) -
Operating transfers in - 798,443 800,353 -
Total other financing
Excess (deficiency) of
sources (uses) - 798,443 800,353 (25,392) 1.
revenues and other financing sources over (under) expenditures and other financing uses 759,463 1,971 (199,840) (214,308) 11 Fund balances at beginning
of year 1,208,242 902,854 384,056 2,045,683 4 11 Residual equity transfers in
- (out) - - (944) -
- 4 Fund balances at end of year $1,967.705 904 z 825 183.272 1.831 ,375 - !I
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I 95
CITY OF CARLSBAD
Redevelopment Bonds Debt Service Fund
Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30, 1995
Actual on Variance-
Budgetary Over Budget Bas is (Under 1
Revenues : Taxes $1,300,000 1,158,957 ( 141,043 )
Interest income 38,000 116,748 78,748
Miscellaneous - 470 470
Total revenues 1,338,000 1,276.175 (61,825)
Expenditures: Debt service:
Principal retirement 19,515 19,515 -
Interest and fiscal charges 1,354,533 1,353,081 (1,452) State mandated payment 92,500 92.495 (5)
Total expenditures 1.466.548 1,465,091 (1.457)
Excess (deficiency) of
revenues over (under)
expenditures $ (128,5 48) 4188.916) c60.368)
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CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the purchase or construction of major capital facilities which are not financed by Proprietary or Trust Funds.
Assessment Districts
To account for capital projects financed by the issuance of assessment district bonds.
Bridge and Thoroughfare Districts
To account for receipts of fees charged to developers for street and highway construction.
City and County Agencies
To account for receipts from other cities and the County of San Diego for street construction and improvements.
Community Develo~ment Block Grants
To account for federal block grants for community development.
Community Facilities District No. 1
To account for civic facilities, freeway interchanges, and road segments financed by Community Facility District No. 1 (Mello-Roos) funding.
Federal Grants
To account for capital projects financed by federal grants.
General Capital Construction
To account for transfers from the General Fund for various municipal capital projects.
Palomar Aiwort Road East Proiect
To account for funding and expenditures related to construction of Palomar Airport Road at
El Camino Real and east to San Marcos city limits. Funding is provided by the cities of San Marcos and Vista, San Diego County Airport, Sales TadTransNet, Traffic Impact fees, and direct developer contributions.
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Park Development
To account for receipts of fees charged to developers for park acquisition and developm
Planned Local Drainage Areas
To account for receipts of fees charged to developers for drainage facilities necessitat
growth.
Public Facilities Construction
To account for receipts of fees charged to developers for specific capital prc
necessitated by growth.
0 I Rancho Santa Fe Road Project
To account for receipts of fees charged to developers for Rancho Santa Fe road constrl and improvements. A Community Facilities District (Mello-Roos) is proposed.
RedeveloDment APency
To account for financial resources segregated for the rehabilitation of commercia
public property and capital projects located in the Carlsbad Village area.
Sales TadTransNet
To account for receipts of County sales taxes allocated by the San Diego County Rei Transportation Commission to finance transportation projects.
State Grants
To account for capital projects financed by state grants including Local Transporl
Funds and Carlsbad Boulevard Shore Protection. I
Traffic Impact Proiects
To account for receipts of fees charged to developers for street construction improvement.
99
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet
June 30, 1995
Bridge and City and Community Community Genera
Assessment Thoroughfare County Development Facilities Federal Capita
Districts Districts Agencies Block Grants District No. 1 Grants Construc
Assets
Cash and investments $1,591,458 99,678 1,459,143 - 10,711,920 - 2,515,21
Receivables: - - - - 141,045 - - Taxes Accounts, net 24,000 - - - 7,722 - -
Accrued interest 13,069 1,485 19,950 - 159,989 - -
Due from other governments - - - 26,120 - 333,882 499,6#
1.700.0( Advances to other funds - - - - - -
Total assets $1.628.527 101.163 1.479.093 26.120 J1.020.676 333.882 4.714.8:
Liabilities and Fund Balances
Liabilities:
Accrued liabilities $ 8,814 - 29,388 3,954 314,056 9,837 151,51
Due to other funds - - - 21,808 - 323,727 -
Deposits payable - - - - - - -
Advances from other funds - - - - - - -
Estimated claims payable - - - - - - -
Deferred revenue - - - - - - -
~~
Total liabilities 8,814 - 29,388 25,762 314.056 333,564 151,51
Fund balances (deficit);
Reserved for advances to
other funds - - - - - - 1,700,0(
Reserved for encumbrances 142,369 - 38,660 54,456 307,043 13,651 266,6: Reserved for debt service - - - - - - -
Unreserved:
Designated for approved
2,596,6~ capital projects 1,261,069 - 181,197 - 1,312,246 -
Undesignated 216,275 101,163 1,229,848 154,098) 9,087,331 J13,333) -
Total fund balances 1,619,713 101.163 1,449.705 358 10.706.620 318 4.563.26
Total liabilities
and fund balances $1,628.527 101,163 1.479.093 26.120 11,020.676 333.8824.714.8s
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Planned
Palomar Loca 1 Public Rancho Santa Traffic
Airport Road Park Drainage Facilities Fe Road Redevelopment Sales Tax] State Impact
East Project Develoument Facilities Construction Proiect Anencv TransNet Grants Proiects
5,261,993 3,409,489 11,194,237 3,045,099 2,099,503 896.245 216,300 1,843,634
- - - - - - - - - - - - - - - - -
78,254 47,885 164,248 44,830 28,449 13,275 4,096 28,917
139,063 - - - - 295,527 - 617,276 - - - - - - - -
~~
- - I 139,063 5,340,247 3,457.374 11,358,485 3,089,929 2,423,479 909.520 837.672 1,872,551
- - 7,912 46,094 30,020 - 9,862 88 - - - - - - - - - - - - - - - - -
2,550,000 300,000 950,000 - - - - 750,000 - - - - - - - 500,000 - - - - 29,800 - 93.859 20,400 I 134.779 2,550.000 300.000 957.912 46.094 59,820 - 103.721 1,270,488
- - - - - - - - -
63,126 - - 65,445 42,600 44,300 24,481 55,640 42,809
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219,959 5,540,767 1.449.564 1,936.491 284.690 97,564 559,254
4,284 2,790,247 3,157,374 10,400,573 3,043,835 2.363.659 909,520 733,951 602.063
139.063 5.3 40.247 3.457.374 11.358. 485 3.089.929 2.423.479 909.520 837.672 1.872.55 1
101
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1995
Bridge and City and Community Community Gener
Assessment Thoroughfare County Development Facilities Federal Capit
Districts Districts Agencies Block Grants District No. 1 Grants Constru
Revenues : - - - 5 y 290,325 - Taxes $-
Charges for services - 97,000 - - 463,295 -
Interest income 83,443 4,163 72,097 - 573,428 -
Contributions from
property owners 77,250 . - - - - -
Miscellaneous - - - - 23,213 - 53
Intergovernmental - - 282,326 510,865 83,226 1,180,179 957
Total revenues 160.693 101.163 354,423 510,865 6,433,487 1.180.179 1.010
Expenditures:
Current:
Capital outlay 170.662 - 368.273 265,714 4,127.463 1.179.861 2.075
Total expenditures 170,662 - 368,273 510.865 4,207,512 1,179,861 2,075
General government - - - 245,151 80,049 -
Excess (deficiency) of
revenues over (under)
expenditures 19,969) 101,163 I13.850) - 2.225.975 318 (1.065
Other financing sources (uses): - 545 Operating transfers in - - - - -
Operating transfers out - - - - - -
Proceeds of loan - - - - - 1,199,950
Total other financing
sources (uses) - - - 1.199.950 - - 545
Excess (deficiency) of
of revenues and other
financing sources over
(under) expenditures
and other financing
uses (9,969) 101,163 (13,850) 1,199,950 2,225,975 318 (519
Fund balances (deficit) at
beginning of year y
as restated 1,656,647 - 1,463,555 (1,199,592) 8,480,645 - 5,082
Residual equity transfers in - - - - - -
Residual equity transfers out (26.965) - - - - -
Fund balances at end of year $1.619.713 101.163 1.449.705 358 10.706.6 20 318 m
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I ' 1,001,625 - 457.678 509,117 173,220 739.219 104,788 146,497 840.167
I 1*001,625
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Planned I Palomar Local Public Rancho Santa Traffic
Airport Road Park Drainage Facilities Fe Road Redevelopment Sales Tax/ State Impact
East Proiect Development Facilities Construction Proiect Aaencv TransNet Grants Pro iect s
- - - - - - - - - - - - - 334,704 28,691 638,692 -
42,030 489,313 1,686,375 413,440 36,916 - - 345,807 - 298,273 166,439 578,539 160,500 128,060 45,597 9,093 98,722 1 214,374 1,818,424 - 2,000 - - - - 36, SO( - - - - - 1.976 - - -
314,432 2,158,727 655,752 2,266,914 573,940 501,656 - 74,288 647,785 481,025
- - - 3,032 603,109 - 22,825 -
- 457.678 509,117 176,252 1,342,328 104.788 169,322 840,165
[ (687.193) 2,158.727 198.074 1,757,797 397.688 1840,672) 130.500) 478,463 (359.13E
- - - - 531,050 - - - - - - - - (100,910) (15,662) (344,70: - - - - - - - - -
I 461,279 - - - - 531.050 (100,910) 115.662) 1344.70-
I (225,914) 2,158,727 198,074 1,757,797 397,688 (309,622) (131,410) 462,801 (703,841
230,198 631,520 2,959,300 8,642,776 2,646,147 2,673,281 1,040,930 271,150 1,305,901
- - - - - - - -
- - - - -
790.247 3. 157.37 4 10. 400.573 3.0 43,835 2.363.659 909.5 20 733.951 602.06;
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I ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operate( manner similar to private business enterprises - where the intent of the governing bc that the costs of providing goods or services to the general public be financed or reco
primarily through user charges.
Carlsbad Municipal Water District
To account for the operation, maintenance, planning, capital facility financing, a1 customer service functions of the Carlsbad water system.
Golf Course D
To account for revenues, expenses and the construction activities of the City's pro municipal golf course.
I Sewer
1 sys tern. To account for the operation, maintenance and capital facility financing of the City's 5
Solid Waste
To account for revenues and expenses of the City's solid waste source-reductio1 recycling programs.
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CITY OF WBAD Enterprise Funds
Combining Balance Sheet
June 30, 1995
Car lsbad Mun i c i pal Water District Golf Course Sewer Solid Waste Totals Assets
Current assets: Cash and investments $18,503,838 1,339,097 20,311,424 116,991 40,271,350 Receivables : Taxes 6,093 - - - 6,093 16,638 2,845,679 Accounts, net 2,829,041 - -
658,741 Accrued interest 280,231 29,574 347,296 1,640 Due from other funds - - 104,750 - 104,750 Due from other governments 32,258 - 1,030,968 - 1,063,226 Inventory 210,873 - 11,219 - 222,092
Total current assets 21,862.334 1.368.671 21,805,657 135.269 45,171,931
4,172,718 Accrued interest - - 4,700 - 4,700
Total restricted assets 2,006,110 - 2,171.308 - 4,177.418
Property, plant and equipment 65,769,231 4,950,182 61,211,892 1,639 131,932,944 Less accumulated depreciation 112,387,259) - (12,285,982) (656) j24,673,897
- 2,166,608 - Restricted assets: Cash and investments 2,006,110
Property, plant and equipment, net 53,381,972 4,950,182 48.925.910 983 107,259.047
Total assets $77.250.416 4.318.853 72.90 2.875 136,252 156.608.396
Liabilities and Fund Eciuitv
Current liabilities: Accrued liabilities .$ 1,647,237 461 151,780 8,771 1,808,249 Due to other funds 104,750 - - - 104,750 Due to other governments 49,166 - - - 49,166 Current portion of long-term debt 918,614 195,528 308,722 - 1,422,864 Estimated claims payable 90,000 - - - 90,000 415,326 268.449 51 Deposits payable 146.826 -
Total current liabilities 2,956,593 195,989 728,951 8,822 3.890.355
Current 1 iabi 1 it ies payable from restricted assets - accrued 337.390 - 492,774
Deferred revenue - - 2,070,778 - 2,070,778 Loan payable 2,195,392 - - - 2,195,392 Certificates of participation, net of 8,772,899 Installment purchase agreement, net
11,483,540 Accrued assessments - 2.585.789 - - 2,585,789
Total liabilities 14.080.268 2.781.778 14,620.659 8.822 31.491.527
interest payable 155.384 -
unamortized issuance costs of $267,101 8,772,899 - - -
of unamortized discount of $333,126 - - 11,483,540 -
Fund equity:
84,934,634
Reserved for bond requirements 1,149,600 - 1,108,730 - 2,258,330 Reserved for rate stabilization 276,918 - - - 276,918 Unreserved 19.756.142 (688.115) 18,451,530 127,430 37,646,987
Total retained earnings 21,182.660 (688.115) 19,560,260 127,430 40,182.235
Total fund equity 63,170,148 3,537.075 58,282,216 127,430 125,116,869
Total liabilities and
fund equity $77.250. 41 6 6.318.85372.902.875136.252156.608.396
Contributed capital 41,987,488 4,225,190 38,721,956 - Retained earnings:
106
CITY OF CARLSBAD
Enterprise Funds
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Combining Statement of Revenues, Expenses and
Changes in Retained Earnings
Year Ended June 30. 1995
Car lsbad
Municipal
Water District Golf Course Sewer Solid Waste Toti
Operating revenues:
Water sales $13,047,541 - - - 13,W
Sewer services charges - - 4,599,075 - 4,591
Other charges for services 498,691 - 276,484 108,853 883
Contributions from other government
Miscellaneous 99.497
- - 40 - 161 - 61.181 -
Total operating revenues 14.048.285 - 4.936.740 108,853 19.09
agencies 402,556 -
Operating expenses:
Plant operations - - 1,828,730 - 1,82
I I 7,421 Purchased water 7,421,532 -
Depreciation and amortization 1,106,709 - 1,223,605 328 2,33(
General and administrative 4.161,873 402.518 1.560.506 116.373 6.241
Total operating expenses 12.690.114 402.518 4.612.841 116,701 17.82;
Operating income (loss) 1.358.171 (402.518) 323,899 17.848) 1,271
Nonoperating revenues (expenses):
Interest income 1,121,240 109,308 1,200,093 6,240 2,436 Interest expense and fees (815,516) - (815,663) - (1,631
Gain (loss) on sale of property 12,445 - 4,803 - 17 - - 730 Property taxes 730,050 -
Miscellaneous income (expense) - - - 58,438 58
Amortization of issuance costs 126.710) - (17.533) - (44
Total nonoperating revenues
(expenses ) 1,021.509 109.308 371.700 64.678 1.567
Bet income (loss) before
operating transfers 2,379,680 (293,210) 695,599 56,830 2,838
- I50. OOO) 1 1oc - Operating transfers out (50.000) ~
Ret income (loss) 2,329,680 (293,210) 645,599 56,830 2,738
Retained earnings at beginning
of year 18.852.980 (394.905) 18.914.661 70,600 37.443
Retained earnings (deficit) at
end of year $21.182.660 (688.112) 19.560. 260 ____- 127.43040.182
107
CITY OF CARLSBAD Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 1995
Car lsbad Municipal Water District Golf Course Sewer Solid Waste Totals
Cash flows from operating activities: Operating income (loss) $ 1,358,171 (402,518) 323,899 (7,848) 1,271,704 Adjustments to reconcile operating income (loss) to net cash provided
Depreciation and amortization 1,106,709 - 1,223,605 328 2,330,642 Decrease ( increase) in receivables 357 , 503 - - ( 16 , 638) 340,865 Decrease (increase) in due to/from - 31,930 - 2,805 other governments 35,502 - (3,572) Decrease (increase) in inventory 5,686 - (2 I 881 ) Increase (decrease) in due to/from other funds (105,174) Increase (decrease) in deposits payable 11,187 - 82,458 - 93,645
34,130 461 (97,404) 3,628 (59,185 Increase (decrease) in accrued liabilities Increase (decrease) in estimated claims payable 90,000 - - - 90,000 Increase (decrease) in loans payable 1,346,166 - - - 1,346,166
operating activities 4,239,880 1402.057) 1,631,279 120,530) 5.448.572
by operating activities:
- - - 105,174
Net cash provided by (used in)
Cash flows from noncapital financing activities: Transfers of capital from other funds - 1,800,000 - - 1,800,000 Transfers of cash to other funds ( 50,000) - (50% 000) - ( 100.000
1.700.000 Net cash provided by (used for) noncapital financing activities r50,OOO) 1,800.000 l50.000) -
Cash flows from capital and related financing activities: Purchases of property, plant and equipment (3,156,797) (2,140,972) (560,270) - (5,858,039 - (289,782) - ( 1,064,782 - (823,148) - (1,610,438 Principal payment on bonds (775,000) Interest and other fees paid on bonds (787,290) Property taxes received 730,050 - - - 730,050 Capital contributions received 999.984 - 702.236 58.438 1,760.658
Net cash provided by (used in) capital and related financing activities 12.989.053) (2,140,972) 1970,964) 58,438 16,042,551
Investments in restricted assets 12,689 - 1,009,330 - 1,022,019 Interest on investments 1.088.803 109.186 1.117,541 5,727 2.321.257
Cash flows from investing activities:
Net cash provided by 5,727 3,343,276
cash equivalents 2,302,319 (633,843) 2,737,186 43,635 4,449,297
investing activities 1.101,492 109,186 2,126,871
Net increase (decrease) in cash and
Cash and cash equivalents at beginning of year 16,201,519 1,972.940 17,574,238 73.356 35,822,053
Cash and cash equivalents at end of year $18.503.838 J+z!LEZ20.311.424 116.991 40.271.350
Supplemental schedule of noncash investing and financing activities:
2,781,317 - - 2,781,317 - Special assessments lien capitalized $
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1 INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provic one department or agency of a government to other departments or agencies on i
reimbursement basis.
Data Processing
To account for charges to other funds for data processing services. 1
Fleet Management
To account fox-,, charges to other funds to provide fleet maintenance and accumulate fun fleet replacement.
General Liability Self-Insurance
To account for charges to other funds to insure for liability claims against the City. I
Health Insurance
To account for charges to other funds and from employees to provide health insuranc full-time City employees.
Workers' ComDensation
To account for charges to other funds to insure against Workers' Compensation claims.
111
CITY OF WBAD Internal Service Funds
Combining Balance Sheet
June 30, 1995
General
Liabi 1 i ty
Data Fleet Self- Health Workers I
Processing Management Insurance Insurance Compensation Totals
Assets
Current assets:
Cash and investments $ 606,422 3,809,274 2,675,362 1,626,882 1,844,074 10,562,014
Receivables:
- 33 Accounts, net - 33 - -
Accrued interest 8,910 52,223 39,082 24,323 29,021 153,559
Inventory - 103,893 - - - 103,893
Total current assets 615.332 3,965,423 2,714.444 1.651.205 1.873.095 10.819.499
Property, plant and equipment:
Equipment and vehicles 1,359,016 5,134,819 - - - 6,493,835
Less accumulated depreciation (556.851) (2,696.140) - - - 13,252,991)
Property, plant and
equipment, net 802.165 2.438.679 - - - 3.240.844
Total assets $1.417.497 6,404.102 2,714,444 1.651.205 1.873.095 14.060.3 43
Liabilities and Fund Euuite
Current liabilities:
Accrued liabilities $ 45,707 70,964 33,006 35,625 10,359 195,661
179.293 367,776 1.014.739 1.561.808
Total current liabilities 45.707 70.964 212,299 403.401 1,025,098 1.757,469
Estimated claims payable - -
Fund equity:
Contributed capital -
Retained earnings:
contributed from other funds 1,017,738 3,052,213 1,910,000 - 750,000 6,729,951
Unreserved 354,052 3,280,925 592.145 1.247.804 97.997 5.572.923
Total fund equity 1.371.790 6.333.138 2,502,145 1,247,804 847,997 12,302,874
Total liabilities and
fund equity $1.417.497 6, 404.102 2.714.444 1.65 1.205 1.873.095 14.060.3 43
112
CITY OF CARISBAD
Internal Service Funds I
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Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 1995
Genera 1
Liab i 1 i t y
Data Fleet Self- Health Worker 6 I
Processing Management Insurance Insurance Comr, ensation To
Operating revenues:
Other charges for services $772,540 2,002,350 943,701 1,335,131 626,809 5,68(
Total operating revenues 773.146 2,017,430 957.558 1.658.065 717,553 6,12
Operating expenses: - 68
Fuel and supplies - 410,425 - - - 411
Claims expense - - 206,479 1,831,993 975,521 3,Ol
General and administrative 596,920 822,982 75,792 - 74.684 1.57(
Total operating expenses 744,849 1,772,678 282.271 1,831,993 1,050,205 5.68
Operating income (loss) 28.297 244,752 675,287 1173,928) (332,652) 3
Depreciation and amortization 147,929 539,271 - -
Nonoperating revenues (expenses):
Interest income 27,009 181,902 128,205 84,992 97,759 51! - 5' Gain (loss) on sale of property - 51,980 - -
Miscellaneous income - - - - 11.673 - 1
1 (expenses) 27,009 233,882 128.205 84.992 109,432 - 58.
Total nonoperating revenues
Income (loss) before operating
transfers 55,306 478,634 803,492 (88,936) (223,220) 1,02
1 Operating transfers in 8,800 - 2,500 - -
Operating transfers out 1220, OOO) - - - - (221
Net income (loss) ( 155,894) 478,634 805,992 (88,936) (223,220) 81
Retained earnings (deficit) at
beginning of year 509.946 2.802.291 (213,847) 1.336.740 321.217 4,75(
Retained earnings (deficit) at
113
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30, 1995
General
Liabi 1 i ty
Data Fleet Self- Health Workers 1
Processing Management Insurance Insurance Compensation Totals
Cash flows from operating activities:
Operating income (loss) $ 28,297 244,752 675,287 (173,928) (332,652) 441,:
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 147,929 539,271 - - - 687,;
6,l (Increase) decrease in receivables - - 6,159 - - -
(Increase) decrease in inventory - (20,110) - - - (20,l
Increase (decrease) in accrued
Increase (decrease) in estimated
liabilities (18,640) (242,814) (27,032) (4,374) 3,124 (289,:
claims payable - - 1437,777) (9,224) 26,387 (420, t
Net cash provided by operating
activities 157.586 527,258 210,478 1187.526) (303.141) 404, t
Cash flows from noncapital financing
activities: Transfers of cash to/from other funds (211,200) - 2,500 - - (208.,:
Transfers of capital to other funds - - - - (250.000) (250 .(
Net cash provided by (used
for) noncapital financing
activities 1211.200) - 2,500 - f 250,000) (458, :
Cash flows from capital and related
financing activities:
Purchases of property, plant and
(631,s equ i pen t (39,879) (592.041) - - -
Cash flows from investing activities -
Interest on investments 28.031 184,022 123,781 87,404 114,649 537. a
Net increase (decrease) in cash and
cash equivalents (65,462) 119,239 336,759 (100,122) (438,492) (148,O
Cash and cash equivalents at beginning
of year 671.884 3.690.035 2.338.603 1.727.004 2.282.566 10.710.0
Cash and cash equivalents at end of year $606.422 3.809.27 4 2.675.36 2 1.626.882 1.8 44.074 10.562.0
Supplemental schedule of noncash
investing and financing activities -
capital assets contributed by (to)
other funds $ 10,853 24,410 - - - 35,21
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AGENCY FUNDS
Agency Funds are used to account for assets held by a government for other funds, governments or individuals.
Deferred ComDensation
To account for employees' deposits in deferred compensation plans offered by the City.
Contractors' and Miscellaneous Deposits
To account for money deposited by contractors for designated future development and other miscellaneous deposits.
Assessment Districts
To account for the debt service transactions on assessment district bonds for which the City is not obligated.
116
CITY OF CARLSBAD
Agency Funds
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Combining Statement of Changes in Assets and Liabilities
Year Ended June 30, 1995
Balances at Balances a
July 1, 1994 Additions Reductions June 30, 19
Deferred Compensation:
Assets:
Deferred compensation investments S 6.991.041 1.305. 133 - 8.296,17
Liabilities:
Deferred compensation payable $ 6.99 1.043 1.305.133 - 8.296.17
Contractors' and Miscellaneous Deposits:
Assets:
Cash and investments $ 6,861,263 28,013,360 (28,525,110) 6,349,51
Accrued interest 68,574 345,309 (331.566) 82.31
4
Total assets S 6.9 29.837 28.358.669 (28.856.6 76) 6,431,831
Liabilities: Accounts payable $ 7,732 - (7,732) -
Deposits payable 6,365,774 16,869,611 (17,558,364) 5,677,02
Accrued interest payable 556,331 226.478 (28,000) 754,80
Total liabilities S 6.9 29.837 17.096.089 (37.594.096) 6.431.831
Assessment Districts:
Assets:
Cash and investments $ 4,320,495 4,876,825 (4,577,837) 4,619,48
Accounts receivable - 28,120 - 28,12
Taxes receivable 860 1,620 (860) 1,62
Accrued interest 47.904 118,623 1115,949) 50.57
Total assets $ 4.369.259 5.025. 188 J4.694.646) 4.699,80
Liabilities:
Accounts payable $ 392 - (392) -
Due to bondholders 4,368,867 5.571,003 15.240,069) 4,699 ,80 I Total liabilities S 4.369.259 5.571.003 15.240.461) 4.699.80
Totals - All Agency Funds:
Assets:
Cash and investments $11,181,758 32,890,185 (33,102,947) 10,968,991
Deferred compensation investments 6,991,043 1,305,133 - 8,296,171
Accounts receivable - 28,120 - 28,12(
Taxes receivable 860 1,620 (860) 1,62(
Accrued interest 116.478 463.932 1447.515) 132.891
34.688.99Q (33.551.322) 19.427.80' Total assets $18.290.139
Liabilities: Accounts payable $ 8,124 - (8,124) -
Accrued interest payable 556,331 226,478 (28,000) 754,80'
Due to bondholders 4,368,867 5,571,003 (5,240,069) 4,699,80
Deposits payable 6,365,774 16,869,611 (17,558,364) 5,677,02:
Deferred compensation payable 6,991,043 1.305.133 - 8,296,17(
Total liabilities $18.290.139 23.972.225 (22.834.557) 19.427.80' 1 117
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets used in operations accounted for in governmental funds. General fixed assets include all fixed assets not accounted for in an enterprise, internal service, or trust and agency fund.
118
CITY OF CARLSBAD General Fixed Asset Account Group
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B Total
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Schedule of General Fixed Assets by Function
June 30, 1995
General Culture & Pub1 ic Pub1 ic Government Recreation Safety Works Total z
$3 , 157 , 228 21 , 993,646 2 , 150 , 407 740,763 28,042 , (
Buildings 3,019,460 10,410,066 13,996,610 - 27,426 , 1
Improvements 790,218 1,885,192 393 , 923 23,471 3,092,:
I Land
n Furniture and equipment 1 , 453,652 1 , 235 , 690 2,053,946 484 , 825 5 , 228,
Construction in progress 1,275 2.208.970 - - 2,210 ,:
$8.421.833 37.733.56 4 18.59 4.886 1 : 249.059 65.999.,
119
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function
Year Ended June 30, 1995
General Fixed General Fixed
Assets at Assets at Func t ion July 1, 1994 Additions Deductions June 30, 1995
General government $ 8,415,250 234,605 (228,022) 8,421,833
Culture and recreation 37,418,640 341,030 (26,106) 37,733,564
Public safety 18,465,877 217,948 (88,939) 18,594,886
Public works 1.245.467 65,306 (61,714) 1.249.059
65,999,342 Total $65.545,234 858.889 (404.781)
120
CITY OF CARLSBAD
General Fixed Asset Account Group
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Schedule of General Fixed Assets by Source
June 30, 1995
As of June 30, 1986
Net additions subsequent to June 30, 1986:
$27,1363
General fund 14,725,l Community Development Block Grants 2,759,4' Federal grants 509,l: State grants 714,51
Park development 6,010,6.
Public facilities 9,855,7 I Redevelopment 4,279,5(
Street lighting 8,6
Total investments in general fixed assets $65.999.3
121
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1
l ANNUAL DEBT SERVICE REQUIREMENTS
The following schedules present principal and interest debt service requirements fc
City's debt.
123
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements
$1,535,000 - 1969 CARLSBAD PARKING AUTHORITY REVENUE BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Annual
Year October 1 April 1 Interest October 1 Debt Service
4.000 125,000 129,000 1995-96 $4,000 -
Total $4.ooo - 4.ooo 125.ooo 129.ooo
$15.495.000 - 1993 CARLSBAD HOUSING ANI) REDEVELOPMENT COMMISSION TAX ALLOCATION BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Annual Year SeDtember 1 March 1 Interest Seutember 1 Debt Service
1995-96 $ 407,670 401,370 809 , 040 240 , 000 1 , 049 , 040
1996-97 401 , 370 394 , 808 796 , 178 250 , 000 1 , 046 , 178
1997-98 394 , 808 387 , 851 782 , 659 265 , 000 1 , 047 , 659 1998-99 387 , 851 380 , 501 768 , 352 280 , 000 1 , 048 , 352
1999-2000 380 , 501 372 , 889 753 , 390 290 , 000 1 , 043 , 390
2000-01 372 , 889 364 , 882 737 , 771 305 , 000 1,042,771
2001-02 364,883 356 , 351 721 , 234 325 , 000 1,046,234
2002-03 356 , 351 347 , 426 703 , 777 340 , 000 1 , 043 , 777 2003-04 347 , 426 337 , 977 685 , 403 360 , 000 1 , 045 , 403 665,977 380,000 1,045,977 645 , 634 1 , 040 , 634 2005-06 328,001 317 , 633
2006-07 317 , 633 306 , 607 624 , 240 420 , 000 1,044,240
2007-08 306 , 607 295 , 058 601 , 665 440 , 000 1 , 041,665 2008-09 295 , 058 282 , 851 577 , 909 465 , 000 1 , 042,909
2009-10 282 , 851 269 , 989 552 , 840 490 , 000 1 , 042 , 840 2010-11 269 , 989 256 , 470 526 , 459 515 , 000 1 , 041 , 459
2011-12 256 , 470 242 , 295 498,765 540 , 000 1,038,765
201 2- 13 242 , 295 227 , 332 469 , 627 570 , 000 1,039,627
2013-14 227 , 332 211,583 438 , 915 600 , 000 1 , 038 , 915
2014-15 211 , 583 195 , 045 406 , 628 630,000 1,036 , 628
2015- 16 195,045 177 , 589 372 , 634 665 , 000 1 , 037 , 634
2016-17 177 , 589 159 , 213 336 , 802 700 , 000 1 , 036,802 2017-18 159,214 139,920 299 , 134 735 , 000 1 , 034 , 134
1 , 034 , 496 2018-19 139,920 119 , 576 259 , 496 775 , 000
2019-20 119,576 98,183 217 , 759 815 , 000 1 , 032 , 759
2020-21 98 , 182 75 , 525 173 , 707 855 , 000 1 , 028 , 707
2021-22 75 , 525 51 , 675 127,200 900 , 000 1 , 027 , 200
- 26, SO0 1,000,000 1,026,500
2022-23 51 9 675
2023-24 26,500
395 , 000 2004-05 337,976 328,001
26,500 78,175 950,000 1,028,175
Total $7.53 2.77Q 7.125.100 14,657-870 15.495.000 30.152.870
124
I CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued) I
1
I $9.570.250 - COLLEGE BOULEVARD ASSESSMENT DISTRICT BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Annu: Year SeDtember 2 March 2 Interest September 2 Debt Serv
360 , 000 897 , 101 $ 275,394 261,714 537 9 108 508,413 390 , 000 898,411
901 , 92' 1997-98 246 , 699 230 , 230 476,929 425 , 000 442,715 455 , 000 897,71:
1999-2000 212 , 485 192,932 405,417 495,000 900 , 41'
2000-01 192 , 932 171 , 800 364,732 535 , 000 899,73
2001-02 171 , 800 148 , 600 320,400 580,000 900 , 401
148,600 123,400 272 , 000 630 7 000 902 , 001
899 , 601 2003-04 123 , 400 96,200 219,600 680,000
2004-05 96 , 200 66,600 162,800 740 , 000 902 , 801
101 , 200 800 , 000 901,201
2006-07 34,600 - 34,600 865,000 899.601
Total $2.060 , 65 4 1,785, 260 3,845.914 6,955.000 10,800.9 1
261,714 246 , 699 1 1995-96
I 1998-99 230 , 230 212,485
I 2002-03
I 2005-06
1996-97
66 , 600 34 , 600
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$8,690,000 - 1988 HOSP GROVE CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total Annu
Year Auaus t 1 Februarv 1 Interest Aums t 1 Debt Serv
1995-96 $ 281,143 270 , 590 551 , 733 315,000 866 , 73
1996-97 270,590 259 7 205 529,795 330 , 000 859,79
1997-98 259 7 205 246 , 780 505 , 985 355,000 860 7 98 246 , 780 233 , 100 479,880 380,000 859 , 88
233,100 217,930 451,030 410,000 861,03
854 , 00 201,400 182 , 600 384 , 000 470,000 854 , 80 2002-03 182 , 600 162,200 344 , 800 510 , 000 2003-04 162,200 140,000 302,200 555,000 857 , 20
256 , 000 600 , 000 856,OO 8 2004-0s 140 , 000 116,000 2005-06 116 , 000 90 , 400 206 , 400 640 , 000 846,40
695 , 000 848,OO 2006-07 90 , 400 62,600 153,000 2007-08 62 , 600 32 , 600 95,200 750,000 845,20 1 2008-09 32,600 - 32.600 815.000 847.60
7.260, 000 11.971.95
I 1998-99
1999-2000 2000-0 1 217,930 201,400 419,330 435,000 854,33
Total $2.496,548 2.215.405 4.711.953 I
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CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$1.199.950 - HUD SECTION 108 LOAN
Fiscal Interest Due Interest Due Total Principal Due Total Annual Year August 1 Feburay 1 Interest August 1 Debt Service
1995-96 $ 48,040 44 , 620 92 , 660 100 , 000 192,660
1996-97 44 , 620 40 , 379 84 , 999 110,000 194,999
1997-98 40 , 379 35 , 819 76 , 198 115 , 000 191 , 198 1998-99 35,819 30 , 770 66 , 589 125 , 000 191 , 589
1999-00 30 , 770 25,491 56 , 261 130,000 186 , 261 2000-01 25 , 491 19 , 787 45 , 278 140 , 000 185,278
2001-02 19,787 - 13 , 621 33 , 408 150 , 000 183,408
2002-03 13 , 621 7 , 030 20,651 160 , 000 180 , 651 2003-04 7.030 - 7,030 169,950 176,980
I. 683 : 024 Total $265.557 217.517 483,0741.199.950
$14.370.000 - 1988 CARLSBAD MUNICIPAL WATER DISTRICT CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total Annual Year November 1 Mav 1 Interest May 1 Debt Service
1995-96 $ 350,049 350 , 049 700 , 098 825 , 000 1 , 525 , 098 1996-97 322,411 322 , 411 644,822 880,000 1,524,822 1997-98 292 , 491 292 , 491 584 , 982 940,000 1,524 , 982 1998-99 260 , 061 260 , 061 520,122 1,005,000 1,525,122 1999-2000 224,886 224 , 886 449,772 1,075,000 1,524,772 2000-01 186 , 724 186 , 724 373,448 1,155,000 1,528 , 448 2001-02 145 , 144 145 , 144 290 , 288 1 , 235 , 000 1 , 525 , 288 2002-03 100 , 375 100 , 375 200 , 750 1 , 325 , 000 1 , 525,750 2003-04 52,012 52.012 104.024 1,425.000 1.529.024
Total $1.34.153 1,934.153 3.868.3069.865_oOo -
126
I CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$12.689.800 - ENCINA FINANCING JOINT POWERS AUTHORITY INSTALLMENT PURCHASE AGREEhENT
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I Principal Fiscal Interest Due Interest Due Total Due Total Annual Year Aunus t 1 Februarv 1 Interest August 1 Debt Service
1995-96 $ 404,866 395,142 800,008 308,722 1,108,730
1996-97 395,142 384,738 779,880 327,662 1,107,542 I 1997-98 384,738 373,586 758,324 348,496 1,106,820 1998-99 373,586 361,616 735,202 371,224 1,106,426
1999-2000 361,615 348,749 710,364 395,846 1,106,210 I 2000-01 348,749 334,979 683,728 420,468 1,104,196 2001-02 334,979 320,167 655, I46 448,878 1,104,024
2002-03 320,166 304,296 624,462 477,288 1,101,750 2003-04 304,297 287,229 591,526 509,486 1,101,012 287,229 268,543 555,772 543,578 1,099,350 268,543 248,555 517,098 581,458 1,098,556 2006-07 248,555 227,201 475,756 621,232 1,096,988 I 2007-08 227,201 204,349 431,550 664,794 1,096,344
2008-09 204,349 179,933 384,282 710,250 1,094,532 2009-10 179,933 153,891 333,824 757,600 1,091,424 2010-11 153,891 126,025 279,916 810,632 1,090,548 I 2011-12 126,025 96,273 222,298 865,558 1,087,856 2012- 13 96,272 66,172 162,444 926,166 1,088,610 2013-14 66,172 34,101 100,273 986,774 1,087,047 I 2014-15 34,101 - 34,101 1,049.276 1,083.377
Total $5.120.409 4,715.545 9,835,95 4 12,125.388 21.961.342
I 2004-05 2005-06
$2,331.489 - CARLSBAD MUNICIPAL WATER DISTRICT STATE LOAN FOR RECLAIMED WATER PROJECTS
Interest Due Principal Due Total Annual
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Fiscal Year November 30 November 30 Debt Service
1995-96 $ 63,673 95,854 159,527 1996-97 63,602 95,925 159,527 1997-98 60,820 98,707 159,527 1998-99 57,957 101,570 159,527
1999-00 55,012 104,515 159,527 2000-01 51,981 107,546 159,527 2001-02 48,862 110,665 159,527
2002-03 45,653 113,874 159,527 2003-04 42,350 117,177 159,527 2004-05 38,952 120,575 159,527
2005-06 35,455 124,072 159,527
2006-07 31,857 127,670 159,527
2007-08 28,155 131,372 159,527
2008-09 24,345 135,182 159,527
2009-10 20,425 139,102 159,527 159,527 2010-11 16,391 143,136
2011-12 12,240 147,287 159,527
20 12- 13 I, 969 151,558 159,527 I 2013-14 2,680 123.219 125,899
Total $708.379 2.289.006 2.997 ~ 385 I 127
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$2,781,317 GOLF COURSE ACCRUED ASSESSMENTS
Total Annual Fiscal Year Interest Due Princiual Due Debt Service
1995-96 $ 218,548 195,528 414,076 1996-97 203,956 211,199 415,155 1997-98 188,025 226,977 415,002 1998-99 170,716 245,594 416,310 1999-00 151,588 265,578 417,166 2000-01 130,770 287,034 417,804 2001-02 107,953 309,858 417,811 2002-03 83,164 335,627 418,791 2003-04 56,314 216,478 272,792 2 0 0 4 - 0 5 38,995 234,150 273 ) 145 2005-06 20,264 253.294 273,558
Total $1.370, 293 2 ~ 781,317 4.151,610
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CIlY OF CARLSBAD
General Expenditures by Function
Last Ten Fiscal Years
Fiscal General Public Cornrn. Housing Library& Cornm. Capital Debt - Year Total(') Govt. Safety --- Devel. &Welfare the Arts - Services Projects Service
1985-86 $36,206,852 2,659,901 7,105,704 4,416,726 1,076,999 1,603,807 6,308,301 12,315,807 719,607
1986-87 49,443,365 3,513,602 8,554,009 4,882,885 1,385,039 2,058,109 5,222,070 22,967,869 859,782
1987-88 41,960,153 3,553,212 9,290,872 5,144,681 1,705,094 2,362,239 6,451,298 11,118,754 2,334,003
1988-89 55,745,009 4,312,897 11,069,305 5,637,655 1,614,015 2,460,874 7,438,346 19,879,063 3,332,854
1989-90 53,133,603 4,700,706 13,090,363 5,832,346 1,808,058 3,710,970 9,238,961 11,104,390 3,647,809
1990-91 72,999,324 5,371,331 15,230,438 7,915,308 2,081,382 3,127,508 8,600,552 26,665,164 4,007,641
1991-92 53,985,119 5,884,582 15,989,114 7,323,586 2,385,384 3,090,540 9,697,220 5,639,898 3,974,795
1992-93 55,104,390 6,080:919 15,734,643 6,648,158 2,808,644 2,987,443 8,995,690 7,192,002 4,656,891
1993-94 62,668,276 5,513,101 16,351,652 6,313,757 3,135,491 3,202,059 9,999,373 12,933,253 5,219,590
1994-95 60,280,103 5,871,248 15,915,678 6,378,074 3,309,663 3,160,129 9,189,368 12,159,653 4,296,290
(I) Includes General, Special Revenue, Debt Service and Capital Projects Funds.
GENERAL EXPENDITURES BY FUNCTION
1994-95
PUBLIC SAFETY 26%
$15.9
GENERAL GOVERNMENT 10%
15.9 MMUNITY DEVELOPMENT 11%
56.4
DEBT SERVICE 7Y.
54.3
COMMUNITY SERVICES t5Ya 19.2
CAPITAL PROJECTS 20% $12.2 HOUSINGMELFARE 5%
LIBRARYIARTS 5% $3.3
13.2
DOLLARS IN MILLIONS
Source: City of Carlsbad Comprehensive Annual Financial Reports
130
1
TOTAL EXPENDITURES I LAST TEN YEARS
1 $80
DOLLARS IN MILLIONS
$60
$40
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t $5
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$20
$0
FISCAL YEAR
INCLUDES GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECT FUNDS 1
SPENDING ON CAPITAL PROJECTS
LAST TEN YEARS
DOLLARS IN MILLIONS
$30
$25
$20
$1 5
$10
$0
9 1990 1991 1992 1993 1994 1995
FISCAL YEAR
131
CITY OF CARLSBAD
General Revenues by Source
Last Ten Fiscal Years
Transient
Fiscal Property Sales Occupancy Other Business
Licenses
1985-86 $37,078,236 6,769,473 6,222,008 1,157,794 1,807,457 471,470
1986-87 45,626,319 8,516,463 6,487,371 1,729,998 1,987,299 517,972
1987-88 42,944,962 8,882,813 7,128,461 1,995,447 4,205,570 61 6,278
1988-89 54,565,025 1 1,012,396 8,186,215 2,752,025 3,648,826 696,706
1989-90 57,970,453 12,677,817 9,342,077 3,630,662 4,114,856 791,715
832,432 1990-91 77,371,107 14,007,364 9,426,111 3,310,043 3,691,387
1991 -92 58,440,436 15,132,124 8,723,382 3,077,595 5,153,213 91 0,532
1992-93 58,115,465 15,332,036 9,167,849 3,098,793 3,408,805 1,071,342
1993-94 62,239,740 13,920,220 1 0,840,115 3,153,084 4,124,250 1,093,827
1994-95 69,768,517 13,537,893 11,399,568 3,252,270 8,434,825 1,245,830
Year Total"' Taxes Taxes Taxes Taxes
('1
(*)
Includes General, Special Revenue, Debt Service and Capital Projects Funds.
Includes interdepartmental services category added in 1991 -92 and miscellaneous
revenues.
GENERAL REVENUE
LAST TEN YEARS
PROPERTY TAX AND SALES TAX REVENI
LAST TEN YEARS
DOLLARS IN MILLIONS DOLLARS IN MILLIONS
$100 $16
$14
$80 $12
$10
$8
$6
$4
$60
$40
$20 $2
$0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
FISCAL YEAR
PROPERTY TAX D SALES TAX
$0
FISCAL YEAR
Source: City of Carlsbad Comprehensive Annual Financial Reports
1 32
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Contributions
Other Intergov- Charges for Fines and From Property
Licenses ernmental S e N i c e s Forfeits Interest Owners - Othc
3,525,394 2,924,892 9,814,416 288,055 2,857,221 1,240
958 3,830,931 5,608,869 12,678,062 366,597 2,944,741
3,521,242 2,506,690 8,770,867 435,649 3,422,839 175,593 1,283
3,858,173 2276,536 7,722,568 478,830 5,644,873 4,529,710 3,1 sa
4,058,540 3,267,054 10,728,326 51 1,890 6,002,986 402,292 2,442
3,550,013 5,405,074 10,701,989 51 5,746 5,737,513 16,515,962 3,677
3,307,980 6,087,138 7,759,224 31 2,984 4,826,292 446,813 2,703
3,355,533 7,107,385 5,725,597 231,877 4,866,361 380,389 4,369
3,590,927 8,019,308 9,i 81 ,ai 4 231,454 3,996,127 344,851 3,743
3,766,340 7,590,323 9,819,230 263,411 4,415,975 2,148,548 3,894
TRANS I ENT OCCUPANCY TAX
LAST TEN YEARS CHARGES FOR SERVICE!
LAST TEN YEARS
DOLLARS IN MILLIONS DOLLARS IN MILLIONS
$1 4
$1 2
$10
$8
$6
$4
$2
$0 1 1 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1986 1987 1988 1989 1990 1991 1992 199:
FISCAL YEAR FISCAL YEAR I
8
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133
$20 -
$15 -
$10 -
$5 -
$0 T
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1 CITY OF CARLSBAD
Computation of Legal Debt Margin
June 30, 1995
25% of net assessed valuation‘’) $ 1,456,367,21
Debt limit (15% of net assessed valuation as adjusted)
Amount of debt applicable to debt limit:
21 8,455,08
Bonded debt(*) 22,575,OO
Certificates of participation 7,260,OO 8 Obligations under capital leases 522,92
Total amount of debt applicable to debt limit 30,357,9:
Legal debt margin $ 188,097,lE
Percent of debt limit 14‘
(’) Beginning January 1, 1987, a change in state law required the County Assessor to asse:
ail taxable property at 100% of full value as opposed to the prior practice of assessir
property at 25% of full value. To be consistent with previous years, the assessed valuatic
used for this computation is at 25% of full value. 1
(*) Total bonded debt:
Parking Authority $ 125,0(
College Boulevard Assessment District 6,955,0(
Tax Allocation Bonds 15,495,0(
Total bonded debt $ 22,57501
135
CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
June 30, 1995
1994-95 Total Assessed Valuation: $5,941,898,733 (after deducting $1 33,649,395 redevelopment incrementa
valuation)
Debt
DIRECT AND OVERLAPPING BONDED DEBT: ApDlicable 1995
% June 30,
San Diego County Building Authorities 4.468% $ 17,885,315
San Diego County Pension Obligations 4.468 $19,231,612
San Diego County Water Authority 4.642 580,018
Metropolitan Water District 0.734 4,601,483
Carlsbad Unified School District Authority 96.91 9 11,005,152
100.000 1 1,910,000
San Marcos Unified School District and Certificates of Participation 24.61 4 1,058,402
San Dieguito Union High School District and Certificates of Participation 7.299 926,608
Encinitas Union School District, Authority and Certificates of Participation 22.71 3 2,952,690 Mira Costa Community College District Certificates of Participation 23.491 529,722
Other School Districts Various 197,898
Tri-City Hospital District 30.761 270,732
Palomar Pomerado Hospital District and Authority 0.654 8,110
Leucadia County Water District and I.D. #1 48.722 & 1.61 1 96,297
Vallecitos Water District and I.D.'s #I, 2 & 6 6.016 - 10.495 40,336
Carlsbad Municipal Water District Certificates of Participation 100.000 9,865,000
Olivenhain Municipal Water District, I.D. #1 29.450 191,425
City of Carlsbad Authorities and Certificates of Participation 100.000 8,110,000
City of Carlsbad 191 5 Act Bonds 100.000 28,135,000
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT ('I $1 17,595,800
40,336
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $1 17,555,464
Carlsbad Unified School District Community Facilities District #1
Less Vallecitos Water District and Improvement Districts
('I Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-
bonded capital lease obligations.
Ratios to Assessed Valuation:
Direct Debt ($8,110,000) ............................. 0.1 4%
Total Gross Debt .................................. 1.98%
Total Net Debt .................................... 1.98%
SHARE OF AUTHORIZED AND UNSOLD GENERAL OBLIGATION BONDS:
Metropolitan Water District ......................... $367,000
Carlsbad Municipal Water District, I.D. #1 ............... $98,978
Carlsbad Municipal Water District, I.D. #3 .............. $200,000
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/95: $74,793
Source: California Municipal Statistics, Inc.
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0.4% -
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CITY OF CARLSBAD
Water Enterprise
Revenue Bond Coverage
Last Ten Fiscal Years
Net Revenue
Direct Available Debt Service Requirements
Cove raq e Principal Interest Total Fiscal Gross Operating For Debt
Year Revenue") Expenses"] Service
1985-86 $1,522,383 1,317,953 204,430 130,000 42,531 172,531 1.18
1986-87 1,532,953 933,368 599,585 140,000 38,549 178,549 3.36
1987-88 1,637,819 1,334,525 303,294 150,000 29,096 179,096 1.69
1988-89 1,760,102 1,195,822 564,280 157,000 21,211 178,211 3.1 7
1989-90 2,001,832 1,415,542 586,290 160,000 12,718 172,718 3.39
1990-91 (3) 1 1,398,343 9,172,478 2,225,865 775,000 1,088,386 1,863,386 1.19
1991 -92 11,504,798 9,520,564 1,984,234 685,000 842,538 1,527,538 1.29
1992-93 12,267,854 11,421,571 846,283 730,000 798,696 1,528,696 0.55
1993-94 15,188,913 12,286,557 2,902,356 775,000 751,248 1,526,248 1.90
1994-95 1591 2,020 12,690,114 3,221,906 825,000 700,098 1,525,098 2.1 1
(')
(*)
(3)
Includes operating and non-operating revenues.
Total operating expenses including depreciation and amortization.
Effective January 1, 1990, Carlsbad Municipal Water District (CMWD) became
a subsidiary district of the City. Thus, beginning in fiscal year 1990-91, all
amounts have been adjusted accordingly. Debt service requirements after that
date include the Improvement District bonds and the Certificates of Participation
issued by CMWD.
Source: City of Carlsbad Comprehensive Annual Financial Reports
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WATER ENTERPRISE GROSS REVENUE
VS. DIRECT OPERATING EXPENSES
LAST TEN YEARS
DOLLARS IN MILLIONS
$18.0
Si 6.0
$14.0
$12.0
$10.0
$8.0
$6.0
$4.0
$2.0
$0.0
FISCAL YEAR
GROSS REVENUE El OPERATING EXPENSES
WATER ENTERPRISE
NET REVENUE AVAILABLE FOR DEBT SERVICE I LAST TEN YEARS
DOLLARS IN MILLIONS
$3.0
$2.5
$2.0
$1.5
$1 .o
$0.5
00.0
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1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
FISCAL YEAR
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CITY OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Fiscal Year Secured Propertv Unsecured Property Less Propertv Exemptions
1985-86 $2,893,268,927 77,524,350 18,616,217
1986-87 3,456,419,183 80,781,420 19,248,842
1987-88 3,937,879,614 98,879,688 21,859,608
1988-89 4,197,767,148 109,633,027 20,083,629
1989-90 4,813,718,827 147,696,674 23,581,665
1990-91 5,406,790,697 182,042,779 25,387,503
1991 -92 5,823,039,810 205,094,661 27,414,635
1992-93 5,948,358,026 242,255,869 31,586,277
1993-94 5,858,987,695 270,120,519 36,151,898
1994-95 5,673,852,489 288,206,831 40,417,338
(’) Does not include redevelopment incremental valuation or state-assessed unitary
values.
Source: County of San Diego Office of the Auditor and Controller
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Total Homeowner's Net Assessed Percentage
ChanQe Assessed Valuation"' Exemptions Valuation
2,952,i 77,060 57,943,200 2,894,233,860 16.0
331 7,951,761 65,492,000 3,452,459,76 1 19.3
4,014,899,694 75,650,400 3,939,249,294 14.1
4,287,316,546 83,847,400 4,203,469,146 6.7
4,937,833,836 87,162,600 4,850,671,236 15.4
5,563,445,973 89,382,767 5,474,063,206 12.9
6,000,719,836 90,728,114 5,909,991,722 8.0
6,159,027,618 92,131,120 6,066,896,498 2.7
6,092,956,316 94,519,630 5,998,436,686 (1.1)
5,921,641,982 96,173,142 5,825,468,840 (2.9)
NET TAXABLE VALUE
LAST TEN YEARS
DOLLARS IN BILLIONS
7
6
5
4
3
2
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1986 1987 198819891990199119921993 Q9941995 1 FISCAL YEAR
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CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Building Business
Fiscal Permit Percent Estimated License Percent
Year Revenue Chanqe Valuation Revenue Chanqe
1985-86 $1,397,129 32.3 263,548,719 471,470 10.0
1986-87 1 ,230,l 00 (1 2.0) 245,661,491 51 7,972 9.9
1987-88 671,779 (45.4) 127,831,606 61 6,278 19.0
1988-89 674,814 .5 111,898,109 696,706 13.1
1989-90 1,029,750 52.6 169,746,343 791,715 13.6
1990-91 857,717 (1 6.7) 163,340,462 832,432 5.1
1991 -92 21 9,445 (74.4) 42,351,906 91 0,532 9.4
1993-94 365,571 56.1 71,057,243 1,093,827 2.1
1992-93 234,063 6.7 49,809,414 1,071,342 17.7
1994-95 644,131 76.2 145,259,418 1,245,830 13.9
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
DOLLARS IN MILLIONS
$300
$250
$200
$150
$100
$50
$0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
FISCAL YEAR
Source: City of Carlsbad Comprehensive Annual Financial Reports
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CITY OF CARLSBAD
Property Tax Levies and Collections I Last Ten Fiscal Years
Fiscal Total Total Current % of Levy
Year Current Levv Collections Collected
1985-86 $6,742,713 6,263,242 92.9
1986-87 8,077,224 7,488,152 92.7
1987-88 9,368,469 8,733,089 93.2
1988-89 10,928,048 10,237,9129 93.7
1989-90 12,600,253 11,816,888 93.8
1990-91 13,931,230 12,986,628 932
1991 -92 14,932,937 13,795,§25 92.4
1992-93 13,990,844 12,776,232 91.3
1993-94 12,373,782 11,318,017 91.5
1994-95 11,977,833 10,843,322 90.5
PROPERTY TAX LEVIES AND COLLECTIONS 1 LAST TEN YEARS
DOLLARS IN MILLIONS
$1 6
$14
$12
$1 0
$8
$6
$4
$2
$0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
FISCAL YEAR
TOTAL LEVY n AMOUNT COLLECTED
Source: County of San Diego Office of the Auditor and Controller
143
CITY OF CARLSBAD
Special Assessment Billings and Collections
College Boulevard Assessment District
Last Nine Fiscal Years
Fiscal Special Assessment Special Assessments
Year Billinqs Collected
Prior to 1987‘’) N/A N/A
1987 $1,000,362 1,000,362
1988 988,116 987,689
1989 984,780 985,207
1990 985,680 985,670
1991 986,080 760,329
1992 940,780 799,231
1993 508,080 420,476
1994 836,787 685,602
1995 884,331 1,490,420‘*’
(1) There were no special assessment billings for the College Boulevard
Assessment District prior to the fiscal year ended June 30, 1987.
Includes delinquent collections of $606,089. (*)
Source: City of Carlsbad Comprehensive Annual Financial Reports
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CITY OF CARLSBAD
Demographic Statistics I Last Ten Fiscal Years
City
Population Populat8
Square Percent County Percer Year Miles Population'') Chanqe Population") of Cour
1986 36.0 48,872 9.7 2,166,169 2.3
1987 39.7 55,282 13.1 2,240,659 2.5
i 988 39.7 58,888 6.5 2,327,657 2.5
i 989 39.7 62,030 5.3 2,418,176 2.6
1990 . 42.2 63,451 2.3 2,509,914 2.5
1991 42.2 64,264 1.3 2,548,728 2.5
1992 42.2 65,661 2.2 2,602,244 2.5
1993 42.2 67,172 2.3 2,648,597 2.5
1994 42.2 67,923 1.1 2,687,987 1.5
1995 42.2 68,064 0.2 2,720,906 1.2
2000 (Estimate) 93,l 34'3' 3,002,162 3.1
2005 (Estimate) 1 06,420'3' 3,278,885 3.2
('I
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Source - State Department of Finance.
Source - County Data Base, San Diego County.
Population for City General Plan and County area - San Diego Association of
Governments Series Vlll growth forecast.
(3)
POPULATION
LAST TEN YEARS
IN THOUSANDS
a0
70
60
50
40
30
20
10
0
1986 1987 1988 isis is90 issi 1992 1993 1994 1995
FISCAL YEAR
POPULATION AS OF JANUARY 1 PER I STATE DEPARTMENTOFFINANCE
145
CITY OF CARLSBAD
Principal Employers
1994-1 995
Firm Product/Service Emplovees
Manufacturing:
Callaway Golf Golf Equipment 2,250
The Upper Deck Entertainment Cards 500
Puritan-Bennett Corporation Medical Equipment 500
Republic Tool & Manufacturing Co. Tools 400
Smith & Nephew DonJoy Inc. Orthopedic Braces 400
Cobra Golf Golf Equipment 300
Taylor Made Golf Co., Inc. Golf Equipment 270
Ashworth, Inc. Golf Apparel 250
Eaton-Leonard Corporation Vending Mac hi nes 240
Hughes Technology Center Integrated Circuits 350
Block Medical, Inc. Medical Supplies 200
Beckman Instruments Medical Diagnostic Reagent 200
Schumacher Chemicals 200
Stillman Seal Industries Gaskets, Seals, O-rings 200
Dy na Corporation Medical Products & Printing Co. 175
Calcitek, Inc. Dental Implants 150
Non-Manufacturinq:
Plaza Camino Real Shopping Mall (5 major Dept. Stores) 3,000
La Costa Hotel & Spa Hotel & Health Spa 950
City of Carls bad Municipal Government 700
Carlsbad Unified School District Education 61 0
Car Country Carlsbad Car Dealerships 500
Farmer’s Insurance - Regional Insurance 400 lsis Pharmaceuticals Research and Development 200
Price Costco Grocer/Wholesale/Retail 200
Best Western Andersen’s Inn H otel/Restau rant 150
Carlsbad By The Sea Retirement/Residential Care Facility 150
Source: City of Carlsbad Chamber of Commerce
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I San Diego Gas & Electric Co. Power Generation $ 309,025,858 5.3%
1 CITY OF CARLSBAD
Principal Taxpayers
1994-95
Percentagc
Net
Assesse
Taxpaver Tvpe of Business Valuation Valuation
Fieldstone/La Costa Associates Land Developer 125,031,838 2.1
La Costa Hotel & Spa Corp. Hotel & Health Spa 98,505,768 1.7 I Aviara Land Associates Limited Land Developer 88,742,485 1.5
Hughes Aircraft Company Manufacturer 74,382,812 1.3
Callaway Golf Co. Manufacturer 35,485,702 0.6 I Upland Industries Corp. Land Developer 31,389,625 0.5
Plaza Camino Real Shopping Center 31,063,173 0.5
Carlsbad Partners Ltd. Land Developer 30,276,889 0.5 I The Vons Companies, Inc. Grocery Retailer 7,712,898 - 0.4 _.
9; 851,617,048 14.4%
(’) Net assessed valuation for 1994-95: $5,825,468,840
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Source: County of San Diego Office of the Auditor and Controller
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CITY OF CARLSBAD
Top 30 Sales Tax Generators
1 994-1 995
Firm Product/Service
Bob Baker Cadillac Car Dealership
Bob Baker lnfiniti Car Dealership
Bob Baker Jeep Eagle Hyundai Car Dealership
Bob Baker Volkswagen Car Dealership
Body Wise International Distributor/Health Products
Broadway Department Store
Bu Ilock’s Department Store
Callaway Golf Co. Manufacturer/Golf Equipment
Carlsbad Mitsubishi Car Dealership Car Dealership Carlsbad Volvo
Hoehn Honda Car Dealership
Hoehn Oldsmobile Car Dealership
Hughes JVC Technology Corp. Manufacturer/lntegrated Circuits
JC Penney Department Store
Jim Finney Pontiac Car Dealership
La Costa Hotel & Spa Hotel and Health Spa
Marshalls Department Store
North County Lincoln Mercury Car Dealership
Price Club Wholesale/Retail/Grocer
Reliable Wholesale Lumber Wholesale/Lum ber
Ro binson’s-May Department Store
Rorick Buick Car Dealership
Sears Roebuck & Company Department Store
The Good Guys Retail/Electronics
Toyota Carlsbad Car Dealership
Vince Dixon Ford Car Dealership
Vons Grocery Company Retail/Grocer
Weseloh Chevrolet Car Dealership
Worthington Dodge Car Dealership
Lexus Carlsbad Car Dealership
Source: Municipal Resource Consultants (MRC)
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CITY OF CARLSBAD
Miscellaneous Statistical Information
1994-95
Date of incorporation July 16, 1952
Type of City General Law
Form of Government Council/Manager
Area 42.19 sq. miles
Population 68,064
Number of Street Lights 4,673
Miles of Streets 278
Fire Protection:
Number of Stations 6
Police Protection:
Number of Stations 1
Number of Sworn Police Officers 80
Municipal Water District:
17,115
12.1 million gallons
325
Miles of Sewers 113
Recreation and Culture:
Number of Customers
Average Daily Consumption
Miles of Lines and Mains
Number of Parks (improved and Unimproved)
Number of Libraries 2
37
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219,130
482
Area of Parks 421.88 acres
Number of Pools
Number of Volumes
Total Number of Full Time City Employees m
149
150
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CERTIFIED PUBLIC ACCOUNT
@ aONRAD SSOCIATES, L.L.p.
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CITY OF CARLSBAD
Carlsbad, California
Single Audit Report on
Federal Assistance Programs
For the fiscal year ended June 30, 1995
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Single Audit Report on
Federal Assistance Programs
For the fiscal year ended June 30, 1995
8
TABLE OF CONTENTS
Independent Auditors' Report on Schedule of Federal Financial Assistance
Schedule of Federal Financial Assistance e
Independent Auditors I Report on Internal Control
Structure Based on an Audit of General Purpose Financial Statements Performed in Accordance
with Government Auditing Standards e
Independent Auditors' Report on Internal Control
Structure Used in Administering Federal Financial Assistance Programs
Independent Auditors' Report on Compliance Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditors' Report on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Programs
Independent Auditors' Report on Compliance with General Requirements Applicable to Federal Financial Assistance Programs
Independent Auditors' Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions
Findings and Recommendations
Status of Prior Audit Findings
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CERTIFIED PUBLIC ACCOUN-
1100 MAIN STREET,
IRVINE, CALIFORN 8 ~SSOCIATES, h WRTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS L.L.p. (714)
CONRAD
*
The Honorable Members of City Council City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON e SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
We have audited the general purpose financial statements of the City of Car California, as of and for the year ended June 30, 1995, and have issued our report tl dated September 29, 1995. These general purpose financial statements are the respons
of the management of the City of Carlsbad, California. Our responsibility is to expr opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing Stan Government Auditing Standards, issued by the Comptroller General of the United State the provisions of Office of Management and Budget Circular A-128, "Audits of Stal
Local Governments". Those standards and OMB Circular A-128 require that we plt perform the audit to obtain reasonable assurance about whether the general p~
financial statements are free of material misstatement. An audit includes examining test basis, evidence supporting the amounts and disclosures in the general purpose fin
statements. An audit also includes assessing the accounting principles used and signi
estimates made by management, as well as evaluating the overall financial statc presentation. We believe that OUT audit provides a reasonable basis for our opinion.
Our audit was conducted for the purpose of forming an opinion on the general p~ financial statements of the City of Carlsbad, California, taken as a whole. accompanying schedule of federal financial assistance is presented for purposes of addi
analysis and is not a required part of the general purpose financial statements.
information in that schedule has been subjected to the auditing procedures applied i audit of the general purpose financial statements and, in OUT opinion, is fairly present
all material respects in relation to the general purpose financial statements taken as a F
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September 29, 1995
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CEFXlFlED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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CITY OF CARLSBAD
Schedule of Federal Financial Assistance
For the fiscal year ended June 30, 1995
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Federal
Domestic Program Federal Fedr
Assistance Identification Assistance Assir
Number Number Received fll Exuenc
U.S. Department of Housine and
Urban Develoument a
Direct Ass is tance:
Section 8 Certificate Program 14.857 CA16EO77006/019 $2,197,889 2,19(
Section 8 Housing Voucher Program 14.855 CA16V077002/006 672 , 157 65:
e Community Development Block Grant 14.218 B94MC060563 520.887 3
Sub t ot a 1 3.390.933 3,35L
U.S. Deoartment of Health and Human Services
Pass-through from the County of San Diego:
Senior Nutrition Program 93.045 34111 78,200 - 7; e
U.S. Department of Agriculture
Pass-through from the County of San Diego:
Senior Nutrition Program 10.558 34111 29,060 - 25
6 U.S. Devartment of Education
Pass-through from the California
State Library:
Library Services 84.034 Various 67.617 - 7:
U.S. Department of the Interior e Direct Assistance:
Habitat Management Plan 15.608 1448-0001-94586 23,449 2t
Pass-through from the San Diego
1' 23.478 - Associat ion of Governments (SmAG) 15.608 14-48-0001-94586
Sub t o t a 1 46,927 - 4; e
U.S. DeDartment of Transmrtation
Pass-through from the California
Department of Transportation:
Highway Bridge Repair and Replacement 20.205 11-117264 846,297 1,017
Intermodal Surface Transporation e Efficiency Act - Bike Lanes 20.205 11-1 19914 - 162
Subtotal 846,297 1,179
Total federal financial assistance $4.459.034 k!LK?l
e (1) Based on actual cash receipts from July 1, 1994 through June 30, 1995.
* Major program.
See accompanying independent auditors' report.
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CERTIFIED PUBLIC ACCOUNTA
1100 MAIN STREET, SI
IRVINE, CALIFORNIA
(714) 472
CONRAD
&ASSOCIATES. A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS L.L.R
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The Honorable Members of City Council 0 City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE e WITH GOVERNMENT AUDITING STANDARDS
We have audited the general purpose financial statements of the City of Ca
California, as of and for the year ended June 30, 1995, and have issued our report t
dated September 29, 1995.
We conducted our audit in accordance with generally accepted auditing staI Government Auditing Standards, issued by the Comptroller General of the United Stai
the provisions of Office of Management and Budget Circular A-128, "Audits of Sta
Local Governments." Those standards and OMB Circular A-128 require that we pi perform the audit to obtain reasonable assurance about whether the general p financial statements are free of material misstatement.
The management of the City of Carlsbad, California, is responsible for establishii maintaining an internal control structure. In fulfilling this responsibility, estimatc judgments by management are required to assess the expected benefits and related c internal control structure policies and procedures. The objectives of an internal ( 0 structure are to provide management with reasonable, but not absolute, assuranc assets are safeguarded against loss from unauthorized use or disposition, an( transactions are executed in accordance with management's authorization and re properly to permit the preparation of general purpose financial statements in acco with generally accepted accounting principles. Because of inherent limitations
internal control structure, errors or irregularities may nevertheless occur and I detected. Also, projection of any evaluation of the structure to future periods is sub the risk that procedures may become inadequate because of changes in conditions, c
the effectiveness of the design and operation of policies and procedures may deteriorai
In planning and performing our audit of the general purpose financial statements of tl- of Carlsbad, California, for the year ended June 30, 1995, we obtained an understanc the internal control structure. With respect to the internal control structure, we obtai understanding of the design of relevant policies and procedures and whether they hav placed in operation, and we assessed control risk in order to determine our a1
procedures for the purpose of expressing our opinion on the general purpose fil statements and not to provide an opinion on the internal control structure. Accordin!
do not express such an opinion.
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MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC KCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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The Honorable Members of City Council
City of Carlsbad, California Page Two
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Our consideration of the internal control structure would not necessarily disclose all m;
in the internal control structure that might be material weaknesses under star
established by the American Institute of Certified Public Accountants. A material we;
is a condition in which the design or operation of one or more of the internal c
structure elements does not reduce to a relatively low level the risk that error
irregularities in amounts that would be material in relation to the general purpose fin statements being audited may occur and not be detected within a timely period by empl
in the normal course of performing their assigned functions. We noted no matters inv
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the internal control structure and its operation that we consider to be material wealc 0 as defined above.
However, we noted certain matters involving the internal control structure and its ope that we have reported to the management of the City of Carlsbad, California, in a se letter dated September 29, 1995.
This report is intended for the information of City management and the agencie
provided federal financial assistance to the City. However, this report is a matter of record and its distribution is not limited.
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September 29, 1995
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CERTIFIED PUBLIC ACCOUN
1100 MAIN STREET,
IRVINE. CALIFORN
CONRAD
4B ~SSOCIATES, A P&RTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS L.L.p. In41
The Honorable Members of City Council City of Carlsbad, California
e
INDEPENDENT AUDITORS' REPORT ON INTERNAL
CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
a We have audited the general purpose financial statements of the City of Ca
California, as of and for the year ended June 30, 1995 and have issued our report t dated September 29, 1995. We have also audited the City's compliance with requirc applicable to major federal financial assistance programs and have issued our report t
dated September 29, 1995.
e We conducted our audits in accordance with generally accepted auditing stai Government Auditing Standards, issued by the Comptroller General of the United Statc Office of Management and Budget (OMB) Circular A-128, "Audits of State and
Governments". Those standards and OMF3 Circular A-128 require that we plan and p the audit to obtain reasonable assurance about whether the general purpose fii statements are free of material misstatement and about whether the City of Ca California, complied with laws and regulations, noncompliance with which would be m, to a major federal financial assistance program.
In planning and performing our audits for the year ended June 30, 1995, we consider1 internal control structure of the City of Carlsbad, California, in order to determi
auditing procedures for the purpose of expressing our opinions on the general p financial statements of the City of Carlsbad, California, and on the compliance of tf of Carlsbad, California with requirements applicable to major programs and to report internal control structure in accordance with OMB Circular A-128. This report ad( our consideration of internal control structure policies and procedures relevi compliance with requirements applicable to federal financial assistance programs. W addressed internal control structure policies and procedures relevant to our audit l general purpose financial statements in a separate report dated September 29, 1995.
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The management of the City of Carlsbad, California, is responsible for establishii maintaining an internal control structure. In fulfilling this responsibility, estirnatc
judgments by management are required to assess the expected benefits and related cl
internal control structure policies and procedures. The objectives of an internal c * structure are to provide management with reasonable, but not absolute, assurancl assets are safeguarded against loss from unauthorized use or disposition, that transa are executed in accordance with management's authorization and recorded prope permit the preparation of general purpose financial statements in accordance with ger
accepted accounting principles, and that federal financial assistance programs are mz in compliance with applicable laws and regulations. Because of inherent limit e
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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The Honorable Members of City Council City of Carlsbad, California
Page Two
in any internal control structure, errors, irregularities, or instances of noncornpliancc
nevertheless occur and not be detected. Also, projection of any evaluation of the stn
to future periods is subject to the risk that procedures may become inadequate becai
changes in conditions or that the effectiveness of the design and operation of policic
procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control stri policies and procedures used in administering federal financial assistance programs .
following categories.
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Accounting Controls
0 Purchases/Disbursements
0 PayroWPersonnel
0 RevenuedReceipts 0
Administrative Controls
General Requirements:
0 Political Activity a 0 Davis-Bacon Act
0 Civil Rights
0 Cash Management
0
0 Federal Financial Reports
0 Allowable Costs/Cost Principles
0 Drug-Free Workplace Act
Relocation Assistance and Real Property Management
a Administrative Requirements
m
Specific Requirements:
0 Types of Services e 0 Eligibility
0
0 Reporting
0 Release of Funds
0 Environmental Review
0 Program Income
0 Monitoring Subrecipients
0 Claims for Reimbursements
0 Cost allocation
Matching, Level of Effort, or Earmarking
8
For all of the internal control structure categories listed above, we obtain
understanding of the design of relevant policies and procedures and whether they havc 6 placed in operation, and we assessed control risk.
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The Honorable Members of City Council City of Carlsbad, California
Page Three
0
During the year ended June 30, 1995, the City of Carlsbad, California, expended 95 PE of its total federal financial assistance under major federal financial assistance progran
We performed tests of controls, as required by OMB Circular A-128, to evaluatl
effectiveness of the design and operation of internal control structure policiei
procedures that we have considered relevant to preventing or detecting ma noncompliance with specific requirements, general requirements, and require governing claims for advances and reimbursements and amounts claimed or use
matching that are applicable to each of City of Carlsbad, California's major fc
financial assistance programs, which are identified in the accompanying Schedu
Financial Assistance. Our procedures were less in scope than would be necessary to I
an opinion on these internal control structure policies and procedures. Accordingly, F not express such an opinion.
We noted a certain matter involving the internal control structure and its operation th consider to be a reportable condition under standards established by the American Ins of Certified Public Accountants. Reportable conditions involve matters coming tl attention relating to significant deficiencies in the design or operation of the in1 control structure that, in our judgment, could adversely affect the City of Car' California's ability to administer federal financial assistance programs in accordance
applicable laws and regulations.
The reportable condition is noted as Finding (1) in the Findings and Recommendations SE of this report.
A material weakness is a reportable condition in which the design or operation of o more of the internal control structure elements does not reduce to a relatively low lev1
risk that noncompliance with laws and regulations that would be material to a fe
financial assistance program may occur and not be detected within a timely peril employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures us(
administering federal financial assistance would not necessarily disclose all matters i
internal control structure that might be reportable conditions and, accordingly, wouh necessarily disclose all reportable conditions that are also considered to be ma
weaknesses as defined above. However, we believe that the reportable condition desc in the Findings and Recommendations Section of this report is not a material weakness.
We also noted other matters involving the internal control structure and its operation we have reported to the management of the City of Carlsbad, California, in a separate I
dated September 29, 1995.
This report is intended for the information of the City management, and the agencies provided federal financial assistance to the City. However, this report is a matter of I record, and its distribution is not limited.
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September 29, 1995
(I) -7-
a
CERTIFIED PUBLIC ACCOUNTA
1100 MAIN STREET, SC
IRVINE. CALIFORNIA I
(714) 474
CONRAD
QSSOC A PARTNERSHIP INCLUDING PROFESSIONAL WTES, CORPORATIONS L.L.p
8
d The Honorable Members of City Council City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
e
We have audited the general purpose financial statements of the City of Cai
California, as of and for the year ended June 30, 1995, and have issued our report tl e dated September 29, 1995.
We conducted our audit in accordance with generally accepted auditing star
Government Auditing Standards, issued by the Comptroller General of the United Stat the provisions of Office of Management and Budget Circular A-128, "Audits of Stai
Local Governments." Those standards and OMB Circular A-128 require that we pli
perform the audit to obtain reasonable assurance about whether the general p financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City of Cai California, is the responsibility of the management of the City of Carlsbad, Califom part of obtaining reasonable assurance about whether the financial statements are f material misstatement, we performed tests of the City of Carlsbad, California's comr with certain provisions of laws, regulations, contracts, and grants. However, the obj of our audit of the general purpose financial statements was not to provide an opin overall compliance with such provisions. Accordingly, we do not express such an opinio
The results of our tests disclosed an immaterial instance of noncompliance that is dis
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a as Finding (2) in the Findings and Recommendations section of this report.
This report is intended for the information of City management and agencies that prl federal financial assistance to the City. However, this report is a matter of public
and its distribution is not limited.
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0 September 29, 1995
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a MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC KCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
8
CERTIFIED PUBLIC ACCOUNTA
1100 MAIN STREET, SC
IRVINE. CALIFORNIA 1
(714) 474
CONRAD
%SSOCL-'\TES. A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS L.L.R
0
The Honorable Members of City Council
City of Carlsbad, California
e INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH SPECIFIC REOUIREMENTS APPLICABLE TO MAJOR
FEDERAL FINANCIAL ASSISTANCE PROGRAMS
We have audited the general purpose financial statements of the City of Cai California, as of and for the year ended June 30, 1995, and have issued our report tl e dated September 29, 1995.
We have also audited compliance by the City of Carlsbad, California, with the require governing types of services allowed or unallowed; eligibility; matching, level of effc earmarking; reporting; release of funds; environmental review; program income; moni subrecipients; claims for advances and reimbursements; and amounts claimed or us matching that are applicable to each of its major federal financial assistance pro1
which are identified in the accompanying schedule of federal financial assistance, fi
year ended June 30, 1995. The management of the City of Carlsbad, Califon
responsible for the City's compliance with those requirements. Our responsibility
express an opinion on compliance with those requirements based on our audit.
We conducted our audit of compliance with those requirements in accordance with ger accepted auditing standards, Government Auditing Standards, issued by the Comp
General of the United States, and Office of Management and Budget (OMB) Circular A "Audits of State and Local Governments". Those standards and OMB Circular A-128 r that we plan and perform the audit to obtain reasonable assurance about whether m;
examining, on a test basis, evidence about the City's compliance with those require We believe that our audit provides a reasonable basis for our opinion.
The results of our audit procedures disclosed an immaterial instance of noncornplianc the requirements referred to above that is noted as Finding (2) in the Findin]
Recommendations Section of this report.
In our opinion, the City of Carlsbad, California, complied, in all material respects, wi requirements governing types of services allowed or unallowed; eligibility; matching, 1( effort, or earmarking; reporting; release of funds; environmental review; program iI monitoring subrecipients; claims for advances and reimbursements; and amounts claii used for matching that are applicable to each of its major federal financial assi programs for the year ended June 30, 1995.
This report is intended for the information of City management and agencies that pr
federal financial assistance to the City. However, this report is a matter of public
and its distribution is not limited.
*
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noncompliance with the requirements referred to above occurred. An audit ir e
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&,@A4 A.Yyb!,~ A. J,/+ 0
September 29, 1995
-9- e MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
8
CERTIFIED PUBLIC ACCOUN
1100 MAIN STREET,
IRVINE, CALIFORN
CONRAD
Q I & WRTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (A41
The Honorable Members of City Council
City of Carlsbad, California
e
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO e FEDERAL FINANCIAL ASSISTANCE PROGRAMS
We have audited the general purpose financial statements of City of Carlsbad, Califor
of and for the year ended June 30, 1995, and have issued our report thereon dated Sep
29, 1995.
We have applied procedures to test whether the City of Carlsbad, California, has cc with the following requirements applicable to its federal financial assistance prc which are identified in the schedule of federal financial assistance, for the year ende 30, 1995: political activity, Davis-Bacon Act, civil rights, cash management, relc assistance and real property management, federal financial reports, allowable cos principles, Drug-Free Workplace Act and administrative requirements.
Our procedures were limited to the applicable procedures described in the Ofi Management and Budget's "Compliance Supplement for Single Audits of State and Governments". Our procedures were substantially less in scope than an audit, the ob of which is the expression of an opinion on the City's compliance with the requirl listed in the preceding paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no IT instances of noncompliance with the requirements listed in the second paragraph
report. With respect to items not tested, nothing came to our attention that cause believe that the City of Carlsbad, California, had not complied, in all material respect
those requirements. Also, the results of our procedures did not disclose any imn instances of noncompliance with those requirements.
This report is intended for the information of City management and agencies that p: federal financial assistance to the City. However, this report is a matter of public and its distribution is not limited.
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e September 29, 1995
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MEMBERS OF AlCPA AND CALIFORNIA SOCIElY OF CERTIFIED PUBLIC ACCOUNTANTS Q
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
e
CERTIFIED PUBLIC ACCOUNTAI
1100 MAIN STREET, SU
IRVINE CALIFORNIA 9
CONRAD
%SSOCIP~TES. A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS L.L.p. (714) 474.
0
The Honorable Members of City Council
City of Carlsbad, California
0
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH SPECIFIC REOUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS e
We have audited the general purpose financial statements of the City of Car California, as of and for the year ended June 30, 1995, and have issued our report ti dated September 29, 1995.
In connection with our audit of the general purpose financial statements of the C
Carlsbad, California, and with our consideration of the City's control structure u
administer federal financial assistance programs, as required by Office of Managemei Budget (OMB) Circular A-128, "Audits of State and Local Governments", we selected c transactions applicable to certain nonmajor federal financial assistance programs fc year ended June 30, 1995. As required by OMB Circular A-128, we have performed au
procedures to test compliance with the requirements governing types of services allov
Our procedures were substantially less in scope than an audit, the objective of which expression of an opinion on the City's compliance with these requirements. According
do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no mi
instances of noncompliance with the requirements listed in the preceding paragraph. respect to items not tested, nothing came to our attention that caused us to believe th City of Carlsbad, California, had not complied, in all material respects, with requirements. Also, the results of our procedures did not disclose any immaterial ins of noncompliance with those requirements.
This report is intended for the information of City management and agencies that prl federal financial assistance to the City. However, this report is a matter of public
and its distribution is not limited.
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unallowed, eligibility, and special requirements that are applicable to those transac
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September 29, 1995 0
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MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
0
e CITY OF CARLSBAD
Findings and Recommendations
For the fiscal year ended June 30, 1995
0
[l) HUD Section 8 Tenant Files
During our single audit testwork over the Section 8 Housing Assistance Pa!
Program, we noted the following cases where tenant files were missing re documentation. They are as follows:
1.
8
A tenant file did not contain the following:
a. Evidence of DroDertv insDection for 1994 - Under 24 CFR 883.713, H
Authorities are required to inspect the projects and review its operat
least annually to determine whether the owners are in compliance wi contracts and the units are in a decent, safe, and sanitary condition.
Recertification amlication for 1994 - It is the Authority's proced include in the annual recertification process a "recertification applic
in which the tenant identifies any changes in household compc
A tenant file contained inconsistent information for a rent adjustment. AI the file included a rent increase request from the owner, the amount req did not agree to the amount adjusted. The file did not identify how th
adjustment was determined.
a
b.
0 income, etc.
2.
8
Case (1) noted above occurred as a result of data entry error. In this case, the file was updated during mid-year (interim recertification) and when this occurre caseworker erroneously entered the interim date as the annual date into the H Assistance Payment (HAP) register. Each month as annual recertifications occi HAP register generates a listing of tenants needing recertification for the mon
this case, the tenant name was not generated by the HAP register since the date was changed.
Case (2) occurred as an oversight by the caseworker.
Recommendation
We understand that the Housing Manager has taken action to minimize the occu of these types of errors. We recommend that the Housing Manager practice routine basis, his comparison of the tenant's anniversary dates in the HAP registe their annual recertification dates.
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(2) Limitations on Administrative Emenditures
The Grantee Performance Report (GPR) filed for the City's Community Develo Block Grant program reported administrative expenditures at 22% of prl expenditures. Administrative expenditures are limited by law to 20% of prl
expenditures.
Recommendation
We understand that the City plans to obtain approval from HUD to redul subsequent year's administrative expenditures to make up for this excess.
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0 CITY OF CARLSBAD
Status of Prior Audit Findings
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The prior year single audit findings have been adequately resolved.
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CARLSBAD REDEVELOPMENT AGENCY
Component Unit Financial Statements
Year Ended June 30, 1995
(With Independent Auditors' Report)
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a CARLSBAD REDEVELOPMENT AGENCY
Component Unit Financial Statements
Year Ended June 30, 1995
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TABLE OF CONTENTS
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Financial Section:
Independent Auditors' Report
0
Component Unit Financial Statements:
Combined Balance Sheet - All Governmental Fund Types and Account Groups
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual -
Special Revenue and Debt Service Funds
Notes to Component Unit Financial Statements
Auditors' Opinion on Compliance with Audit Guidelines for California Redevelopment Agencies
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1. . e
CERTIFIED PUBLIC ACCOUN1
1100 MAIN STREET, '
IRVINE, CALlFORNl e ~SSOCIATES, A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS L.L.p. (714) 1
CONRAD
The Board of Commissioners Carlsbad Redevelopment Agency Carlsbad, California
0
INDEPENDENT AUDITORS' REPORT 0
We have audited the accompanying financial statements of the Carlsbad Redevelop
Agency, a component unit of the City of Carlsbad, as of and for the year ended Junc 1995, as listed in the table of contents. These component unit financial statements art responsibility of the management of the Carlsbad Redevelopment Agency. Our responsil is to express an opinion on these component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards Government Auditing Standards. Those standards require that we plan and perform the to obtain reasonable assurance about whether the component unit financial statement free of material misstatement. An audit includes examining, on a test basis, evic supporting the amounts and disclosures in the component unit financial statements. An also includes assessing the accounting principles used and significant estimates mad management, as well as evaluating the overall component unit financial state presentation. We believe that our audit provides a reasonable basis for our opinion.
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In our opinion, the component unit financial statements referred to above present fair' e all material respects, the financial position of the Carlsbad Redevelopment Agency at
30, 1995, and the results of operations for the year then ended, in conformity with gem
accepted accounting principles.
0 Lnf &SA 1 L .LM.
September 29, 1995
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
0
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0 CARLSBAD REDEVELOPMENT AGENCY
Combined Balance Sheet -
All Governmental Fund Types and Account Groups
June 30, 1995 e
Governmental Fund Twes Account Group
General Tota
Special Debt Capital Long- t e rm (Memo rand
0 Revenue Service Pro i ec t s Debt 1995
Assets and Other Debits
4,536,216
2,314,387 Loan receivable 2,314,387
Taxes receivable 8,666 34,663 - - 43,329 0 Interest receivable 9,792 30,308 28,449 - 68,549
295,527
Amount available in debt service fund - - - 1,831,375 1,831,375
Amount to be provided for retirement
of debt - - - 22,506,556 22,506,556
Cash and investments (note 3) $ 670,309 1,766,404 2,099,503 - - - -
Due from City of Carlsbad - - - - -
Due from other governments - - - 295,527
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Total assets and other debits $3 * 003 * 154 1.831.375 2 -423,479 24.337.93 1 31,595.939
Liabilities and Fund Balances
Liabilities:
34 - 3,562 - 3,596 - 37,264 Accrued expenses 10,806 - 26,458
Deferred revenue - - 29,800 - 29,800
Advances from the City of Carlsbad
(note 5) - - - 8,842,931 8,842,931
Bonds payable (note 5) - - - 15,495,000 15,495,000
Total liabilities 10.840 - 59.820 24,337,931 24,408,591
Accounts payable $
Fund balances: 0 Reserved for loan receivable (note 7) 2,314,387 - - - 2,314,387
Reserved for future debt service
(note 7) - 1,831,375 19,484 - 1,850,859
Reserved for low and moderate income
housing (note 7) 675,883 - - - 675,883
Reserved for encumbrances (note 7) 2,044 - 44,300 - 46,344 0 Unreserved:
Designated for approved capital
projects (note 7) - - 1,936,491 - 1,936,491
Undesignated (note 7) - - 363,384 - 363,384
7,187,348 Total fund balances 2,992,314 1,831,375 2,363,659 -
Total liabilities and fund 0
balances $3.003.154 1.831.375 2.423.479 24.337.93 1 31.595.939
See accompanying notes to component unit financial statements. e -2-
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e CARJABAD REDEVELOPhENT AGENCY
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 1995
a
Totals
Special Debt Capital (Memorandum Onlv]
Revenue Service Projects 1995 1991
Property tax increment $ 289,739 1,158,957 - 1,448,696 1,610, z 0 Intergovernmental - - 334,704 334,704 30,;
Interest 49,577 116,748 128,060 294,385 233,
Miscellaneous 174 470 1.976 2.620 26 ,
Total revenues 339.490 1.276.175 501.656 2.117,321 1,938,
Revenues :
Charges for services - - 36,916 36,916 37,.
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Expend i t ur es :
General government - - 603,109 603,109 608,
Capital outlay - - 739,219 739,219 2,301,
Housing and welfare 67,729 - - 67,729 101,
Debt service :
Principal - 19,515 - 19,515 I.
Interest and fiscal charges - 1,353,081 - 1,353,081 907,
Payment to refunded bond escrow
agent (note 5) - - - - 1,709.
Debt issuance costs - - - - 489 s
State mandated payment (note 8) - 92,495 - 92.495 92
Total expenditures 67.729 1.465.091 1,342,328 2.875.148 6,217
Excess (deficiency) of
revenues over (under)
expenditures 271,761 (188,916) (840.672) (757,827) J4.278
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Other financing sources (uses):
Operating transfers in - - 528,300 528,300 3,129
Operating transfers out - (528,300) - (528,300) (3,129
Transfers from the City of Carlsbad - - 2,750 2,750
Proceeds of advances from e the City of Carlsbad - 502,908 - 502,908 414 Payment to refunded bond escrow agent - - -
10,964 Proceeds of refunding bonds - - - -
Proceeds of bonds, net of discount - - - - 4.220
- (10,964
Total other financing sources 0 (uses) - (25.392) 531,050 505.658 4,695
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses 271,761 (214,308) (309,622) (252,169) 41:
Fund balances at beginning of year 2,720.553 2.045.683 2.673.281 7,439,517 7,022
Fund balances at end of year $2.992.314 1.831.375 2.363.659 2 ,187.348 7.43:
See accompanying notes to component unit financial statements.
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CARL.SBAD REDEVELOPhERT AGENCY e
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and Actual -
Special Revenue and Debt Service Funds
Year Ended June 30, 1995 0
Special Revenue Debt Service
Actual on 0
Budgetary Variance- v
Basis Favorab 1 e E
Actual & Budget (Note 21 (Unfavorable) Budget
Revenues : e Property tax increment ,$' 323,000 289,739 (33,261) 1,300,000 1,158,957
Interest 74,500 49,577 (24,923) 38, aoo 116,748
Miscellaneous - 174 174 - 470
Total revenues 397,500 339,490 (58,010) 1,338.000 1,276,175
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Expenditures: 105,000 69,773 35,227 - - Housing and welfare
Debt service: Principal - - - 19,515 19,515
Interest and fiscal charges - - - 1,354,533 1,353,081 e State mandated payment (note 8) - - - 92.500 92,495
Total expenditures 105,000 69.773 35.227 1,466,548 1.465.091
Excess (deficiency) of
revenues over (under) expend i t ur es 29 2,500 269,717 (22,783) (128,548) r188,916)
Other financing sources (uses):
Operating transfers out - - - (528,300) ( 528,300)
Proceeds of advances from the a City of Carlsbad - - - 502.908 502.908
Total other financing sources (uses) - - - (25,392) 125.392)
Excess (deficiency) of e revenues and other
financing sources over
(under) expenditures and
other financing uses 292,500 269,717 (22,783) (153,940) (214,308)
Fund balances at beginning of year 2.720.553 2.720.553 - 2,045.683 2,045.683
Fund balances at end of year LF3.013.053 2.990. 270 (22.783) 1.891.742 1.831.375
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See accompanying notes to component unit financial statements.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
Year Ended June 30,1995
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(1, Organization and Summary of Significant Accounting Policies
The Carlsbad Redevelopment Agency (the Agency) was established in July 1976 the adoption of Ordinance No. 1191 by the Carlsbad City Council pursuant tc
California Community Redevelopment Law, now codified as Part 1, Division 24, o State Of California Health and Safety Code. The Agency has the broad authori acquire, rehabilitate, develop, administer, and sell or lease property. The Agen
not subject to federal or state income taxes.
The principal objectives of the Agency are to eliminate blighted influences withi "Village Area" of the City of Carlsbad, stimulate and attract private invest] generate added employment through increased specialty goods and services, and e: the City's sales tax revenue.
The Agency is an integral part of the reporting entity of the City of Carlsbac
City). The funds and account group of the Agency have been included within the
of the general purpose financial statements of the City because the City Council j governing board over the operations of the Agency. Only the funds and account
of the Agency are included herein; therefore, these financial statements do not p~ to represent the financial position or results of operations of the City of Car;
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The accounting policies of the Agency conform to generally accepted accoi principles as applicable to governmental units. The following is a summary of the significant policies:
e (a) Basis of Presentation
The accounts of the Agency are organized on the basis of funds and an ac
group, each of which is considered to be a separate accounting entity. operations of each fund and account group are accounted for by provic separate set of self-balancing accounts that comprise its assets, liabilities
balance, revenues, and expenditures. The various funds and account gro~ summarized by type in the financial statements. The fund types and ac group used by the Agency are as follows:
GOVERNMENTAL FUND TYPES
Governmental funds are used to account for the Agency's expendable fir resources and related liabilities. The measurement focus is upon determi of changes in financial position. The following are the Agency's govern1 fund types:
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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f1) Organization and Summarv of Significant Accounting Policies, (Continued)
a (a) Basis of Presentation. (Continued)
SDecial Revenue Funds
Special revenue funds are used to account for revenues derived specific sources (other than major capital projects) that are restrict€ law or administrative regulation to expenditures for specified purposes
Debt Service Funds
Debt service funds are used to account for the accumulation of reso for, and payment of general long-term debt principal, interest and re
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Capital Proiects Funds
Capital projects funds are used to account for financial resources used for the acquisition or construction of major capital facilities. e
GENERAL LONG-TERM DEBT ACCOUNT GROUP
This account group is used to establish accounting control and accountabilii the Agency's general long-term debt. This account group is used to accou all long-term obligations of the Agency.
Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measurement : Accordingly, only current assets and current liabilities are included on balance sheets, and the reported fund balance provides an indication of avai e spendable resources. Operating statements for governmental fund types I
increases (revenues) and decreases (expenditures) in available spendable resa
The modified accrual basis of accounting is utilized by the governmental
measurable and available. Available means collectible within the current 1 or soon enough thereafter to be used to pay liabilities of the current period.
Revenues that are accrued include the tax increment on real property taxc interest income.
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types. Revenues are recognized when susceptible to accrual, Le,,
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a CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
I)
(1) Organization and Summary of Significant Accounting Policies, (Continued)
a (b) Measurement Focus and Basis for Accounting. (Continued)
Real property taxes are levied on October 15 against owners of record at 1. The taxes are due in two installments, on November 1 and February
become delinquent after December 10 and April 10, respectively. Tax
attach annually as of 12:Ol a.m. on the first day of March in the fiscal ye:
which the taxes are levied. Under the provisions of NCGA Interpretat
property tax revenue is recognized in the fiscal year for which the taxei
been levied, provided it is collected within 60 days of the end of the fiscal j
Governmental fund expenditures are recognized when the liability is inc
except for principal and interest on long-term debt which is recognized whe
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(c) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and commitments for the expenditure of monies are recorded in order to resen portion of the applicable appropriation, is employed as an extension of :
budgetary control in the governmental funds. Encumbrances outstan&
year-end do not constitute expenditures or liabilities, but are repor
reservations of fund balance for subsequent-year expenditures.
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(d) Cash and Investments
The Agency participates in the pooled cash and investment fund of the C Carlsbad. Pooled investments are stated at cost or amortized cost Agency's equity in the pooled cash is included in the financial statements a and investments. Interest earned as a result of the pooling is allocated Agency based on average monthly cash balances.
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(e) ComDensated Absences e
Vacation pay is payable to employees at the time used or upon terminat
employment. The cost of accumulated vacation expected to be paid in th 12 months is recorded as a fund liability; currently no amounts are expectec paid after 12 months.
(f) Total Columns 0
Total columns on the accompanying combined financial statements are car
"Totals (Memorandum Only)" to indicate that they are presented 01
facilitate financial analysis. Data in these columns do not present fir position, results of operations, or changes in fund balance in conformit!
generally accepted accounting principles. Such data is not comparablc consolidation. Interfund eliminations have not been made in the aggregat this data.
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L $63
CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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(2) Budgetary Data
The budget for the Agency is established by the City of Carlsbad. The City Manag authorized to make transfers of appropriated amounts within a fund for up to $25 Revisions that alter the total appropriations of any fund must be approved by the Council with the exception of budget adjustments which involve offsetting rev€ and expenditures. The City Manager is authorized to increase or decreasc appropriation for a specific purpose where the appropriation is offset by unbudg revenue which is designated for said specific purpose. Quarterly budget review!
conducted each year and any major changes to the adopted budget are approved b!
City Council at that time.
Budgets are adopted on the modified accrual basis, except that encumbrance: treated as budgeted expenditures in the year purchases are committed. Expendi may not exceed budgeted appropriations at the departmental level. Unencumt appropriations lapse at year-end. Annual budgets are adopted for the special re\ and debt service funds.
For purposes of budgetary presentation, actual generally accepted accoL
principles (GAAP) expenditures have been adjusted to include encumbr
outs tanding.
The following schedule is a reconciliation of the budgetary and GAAP Special Re7
fund balances:
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SDecial Revenue
e Fund balance - budgetary basis $2,9 90,270
Encumbrances outstanding at year-end 2.044
Fund balance - GAAP basis $2.992.314
13) Cash and Investments
The Agency participates in the pooled cash fund of the City.
Authority for Deposits and Investments
The Agency's investment policy and state statutes authorize the Agency to inv obligations of the U.S. Treasury, its agencies and instrumentalities, commercial rated A-1 by Standard and Poor's Corporation or P-1 by Moody's Commercial record with a maximum maturity of 180 days or 15% of the portfolio, ba
acceptances with a maximum maturity of 270 days or 25% of the portfolio, repu
agreements with a maximum maturity of one week, certificates of deposi; national and state licensed or chartered banks or federal or state savings an1 associations, medium-term corporate notes with a maximum five-year maturitg in the two top rating categories and not to exceed 30% of the portfolio, money r and mutual funds whose portfolios consist of one or more of the foregoing invest] the County Treasurer's investment pool not to exceed 15% of the portfolio, ai State Treasurer's investment pool.
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CARLSBAD REDEVkLVPMkN 1 ACikN L Y
Notes to Component Unit Financial Statements
(Continued)
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e (3) Cash and Investments, (Continued)
State statutes require that all deposits be insured or collateralized. Deposit
holding public funds on deposit are required to maintain collateral in the form of a
of securities with the agent of the depository having a market value of at least 50 percent in excess of the total amount of all public funds on deposit.
Classification of Investments by Credit Risk:
As defined in Governmental Accounting Standards Board Statement No. 3
Agency's investments in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are held by
the Agency or its agent in the Agency's name.
Category 2 - Uninsured and unregistered investments, for which the securities are held by the counterparty's trust department or agent in the Agency's name.
Category 3 - Uninsured and unregistered investments, for which the securities are held by the counterparty or by its trust department or agent, but not in the Agency's name.
At June 30, 1995, the Agency had the following investments which arc
Carrying Marke Investment Amount Value
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categorizable by credit risk: a
Investment in mutual funds $ 50,669 50 ,
Total investments $4.536. 21 6 4.536.
Investment in state pool (LAIF)* 2,047,089 2,047, e Investment in City's pooled cash fund 2,438,458 2,438,
* The State of California Pooled Money Investment Account (generally refer as LAIF) has invested in certain market risk sensitive instruments includir Treasury strips, federal agency floating rate notes, federal i mortgaged-backed securities, and corporate floating rate notes. 0
(4) Pension Plan
The Agency's employees are included in the City's pension plan which is admin
by the California Public Employees Retirement System (PERS). PERS is an multiple-employer public employee retirement system that acts as a c( investment and administrative agent for participating public entities within thc of California.
All full-time employees are eligible to participate as members of the PERS. B
vest after an employee has been a member of the plan for five years. Employc eligible to retire after age 50 with 5 years of credited service. Annual retii
benefits are determined based on age at retirement, the length of membership :
and the amount of earnings based on the highest twelve consecutive months a\ The PERS also provides death and disability benefits. These benefit provisions
other requirements are established by state statute.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued)
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(4) Pension Plan, (Continued)
a Employees are required to make contributions equaling 7% of gross pay. This is p the City for the benefit of the employees in lieu of salary. The City is also requi contribute the remaining amounts necessary to fund the benefits for its members the actuarial basis recommended by the PERS actuaries and actuarial consultan
adopted by the PERS Board of Administration.
Statement No. 5 are not available for the Agency as a separate entity. information for the City's reporting entity is presented in the Comprehensive A Financial Report of the City of Carlsbad.
Additional disclosures required by Governmental Accounting Standards
e (5) Long-term Debt
The following is a summary of changes in long-term debt for the year ended Ji 1995:
Principal Pr incipi Balance at Additional Balance i
July 1, 1994 Obligations Deletions June 30. 1 e
Advances from the City of
Car 1 sbad $ 8,369,823 502,908 (29 , 800) 8, 842, 9;
15,495,0(
Total 3.86 4.823 502.908 (29.800) 24.337 > 9:
Bonds payable 15.495.000 - - e
Since activation of the Redevelopment Agency in July 1976, the City has advanc
Agency monies for approved expenditures. Advances from the City bear interes
to the City's interest rate received on pooled investments. There is no stated m date.
On August 15, 1993, the Agency issued $15,495,000 in tax allocation bonds v average interest rate of 5.3% to finance redevelopment activities within the Redevelopment Project Area and to advance refund $1 1,185,000 of outstandin series tax allocation bonds with an average interest rate of 7.3%. At June 30 $10,550,000 of the defeased 1988 bonds were outstanding.
Proceeds of $10,964,372 plus an additional $1,709,777 of 1988 series monies wei to purchase U.S. government securities. Those securities were deposited irrevocable trust with an escrow agent to provide for all future debt service pa
on the 1988 series bonds. As a result, the 1988 series bonds are considerec defeased and the liability for those bonds has been removed from the 1 long-term debt account group.
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0 CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
(Continued) *
(51 Long-term Debt, (Continued)
e Debt service requirements to maturity for the bonds, including sinking fund pay1
are as follows:
1996 $ 1,049,040 1997 1,046,178
1998 1,047,659 e 1999 1,048,352 2000 1,043,390 2001-2005 5,224,162 2006-2010 5,212,288 2011-2015 5,195,394
2016-2020 5,175,825 e 2021-2024 4.110.582
30,152,870
Less amounts representing interest (14,657,870)
Bonds payable $ns.495.O00
At June 30, 1995, the Agency was in compliance with all significant debt covenant e
(6) Obligations Under Operating; Leases
In June 1988, the Agency entered into an agreement to lease a parking lot on Street from a private party. The lease requires monthly rental payments for t\ years. Total annual rent payments are $49,308 for fiscal year ending June 30,
with annual cost of living adjustments required and market value adjustments rec every 5 years after fiscal year ending June 30, 1988.
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e (71 Fund Balances
Reserves for the loan receivable and low and moderate income housing are establ
to show that certain assets are already committed for other purposes and arc available for discretionary expenditures.
Reserve for future debt service represents resources legally restricted to the pay of general long-term debt principal and interest maturing in future years.
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CARLSBAD REDEVELOPMENT AGENCY
Notes to Component Unit Financial Statements
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(Continued)
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(7) Fund Balances, (Continued)
0 Reserve for encumbrances represents commitments related to unperformed con’
for services and undelivered goods.
Unreserved-designated for approval capital projects represents the fund bi
expected to be used for the acquisition or construction of major capital facilities.
reduction for reserved and designated fund balances.
e Unreserved-undesignated balances represent the fund balance remaining
f8) State Mandated Pavment
0 The Agency was required by the State Department of Finance, pursuant to a dated October 3, 1994, to shift a portion of tax increment money to the Educ; Revenue Augmentation Fund. The Agency funded its $92,495 payment from A tax increment funds. No payment is required in fiscal year 1995-96.
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CERTlFlED PUBLIC ACCOUNl
1100 MAIN STREET, 5
IRVINE, CALlFORNl
(714) 4
&ONW SSOClATES j L.L.P. a A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
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The Board of Commissioners Carlsbad Redevelopment Agency Carlsbad, California e
Auditors' Opinion On Compliance With Audit Guidelines for California Redevelopment Agencies
0 We have audited the combined financial statements of the Carlsbad Redevelopment A$
(a component unit of the City of Carlsbad, California) as of and for the year ended Jun 1995, and have issued our report thereon dated September 29, 1995. We conducted our in accordance with generally accepted auditing standards and Government Auc Standards. Those standards require that we plan and perform the audit to obtain reaso assurance about whether the financial statements are free of material misstatement.
Compliance with laws and regulations applicable to the Carlsbad Redevelopment Ager
the responsibility of the Carlsbad Redevelopment Agency's management. As pa obtaining reasonable assurance about whether the financial statements are free of ma misstatement, we performed tests of the Carlsbad Redevelopment Agency's compliance provisions of laws and regulations contained in the Guidelines For ComDliance Audi California RedeveloDment Agencies issued by the State Controller's Office, Divisil
Local Government Fiscal Affairs.
The results of our tests indicated that, with respect to the items tested, the Car
Redevelopment Agency complied, in all material respects, with the provisions referred
the preceding paragraph. With respect to items not tested, nothing came to our atte
that caused us to believe that the Carlsbad Redevelopment Agency had not complied,
material respects, with those provisions.
This report is intended for the information of the Carlsbad Redevelopment Agency, anc State Controller's Office. However, this report is a matter of public record an distribution is not limited.
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cBlthl(dJ /&.#&.a / L.L.P.
September 29, 1995 a
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Financial Statements and Supplemental Data
Year Ended June 30, 1995
(With Independent Auditors' Report Thereon)
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CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Financial Statements and Supplemental Data
Year Ended June 30, 1995
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TABLE OF CONTENTS
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Independent Auditors' Report
Financial Statements:
0 Combined Balance Sheet - Governmental Fund Type and Account Group
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds
e Notes to Combined Financial Statements
Supplemental Data:
Combining Balance Sheet - Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds a
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CERTIFIED PUBLIC ACCOUNT
0 ~SSOCMTES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (7141 4
1100 MAIN STREET, 5
IRVINE, CALlFORNli
CONRAD
a The Board of Directors
City of Carlsbad Public Improvement Corporation
Carlsbad, California
IndeDendent Auditors' ReDort a
We have audited the accompanying component unit financial statements of the C Carlsbad Public Improvement Corporation (the Corporation) as of and for the year
June 30, 1995, as listed in the accompanying table of contents. These componer financial statements are the responsibility of the Corporation's management. responsibility is to express an opinion on these component unit financial statements ba our audit.
We conducted our audit in accordance with generally accepted auditing standards. standards require that we plan and perform the audit to obtain reasonable assurance
whether the financial statements are free of material misstatement. An audit ir examining, on a test basis, evidence supporting the amounts and disclosures in the fiI statements. An audit also includes assessing the accounting principles used and sip estimates made by management, as well as evaluating the overall financial sta presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the component unit financial statements referred to above present f;
all material respects, the financial position of the City of Carlsbad Public Impro
Corporation as of June 30, 1995, and the results of its operations for the year then e conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the component unit fi statements taken as a whole. The combining financial statements listed in the accoml table of contents are presented for purposes of additional analysis and are not a ri part of the component unit financial statements of the City of Carlsbad Public Impro Corporation. Such information has been subjected to the auditing procedures applied audit of the component unit financial statements and, in our opinion, is fairly state1 material respects in relation to the component unit financial statements taken as a wh
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August 4, 1995
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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a CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combined Balance Sheet -
Governmental Fund Type and Account Group
June 30, 1995 e
Governmental Account Fund Tvoe Group 0 Genera 1 Tc Debt Long-term (Men Service Debt - I
Assets
1 Cash and investments held by trustee (note 2) $ 874,838 Net investment in direct financing lease (note 3) 6,368,575 - 6,: Inter e s t r ece ivab 1 e 29,987 - 891,425 < Amount available in debt service funds Amount to be provided for retirement of 0 certificates of participation - 6.368.575 6.:
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Total assets $7.273.400 7.260.00014.
Liabilities and Fund Balance
Liabi 1 it ies : 0
Deferred revenue $6,368,575 - 6, Certificates of participation payable (note 4) - 7.260.000 7.
Total liabilities 6,368,575 7,260,000 13.
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Fund balances : - Reserved for arbitrage (note 5) $ 13,400
Reserved for debt service (notes 4 and 5) 891.425 - -
Total fund balances 904.825 -
Total liabilities and fund balances $7.273.400 7.260.00014.
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See accompanying notes to combined financial statements.
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0 CITY OF CAlUSBAD PUBLIC IMPROVEMENT CORPORATION
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
Debt Service Funds
0 Year Ended June 30, 1995
Deb e Serv
Lease payments $798 5 Interest on investments 74,
Revenues :
872 1 e Total revenues
Expenditures: Principal 295,
Interest 57 1 Administrative 3 e
Total expenditures 870
Excess (deficiency) of revenues over (under) expenditures 1
Operating transfers out (73
Other financing sources (uses): e
Operating transfers in 13
Total other financing sources (uses)
Excess (deficiency) of revenues and other financing sources over (under) expenditures and other
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financing uses 1
902
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Fund balances at beginning of year
Fund balances at end of year
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See accompanying notes to combined financial statements.
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a CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
Year Ended June 30, 1995
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(1) OrFanization and Summary of Significant - Accounting; Policies
The City of Carlsbad Public Improvement Corporation (the Corporation) was org;
on June 1, 1988 under the Nonprofit Public Benefit Corporation law for the purp
financing and constructing certain improvements on the parcel of property knc
Hosp Grove. The Corporation is not subject to federal or state income taxes.
The Corporation is an integral part of the reporting entity of the City of Cai California (the City). The accounts of the Corporation have been included wit1 scope of the general purpose financial statements of the City because the City C
has financial accountability over the operations of the Corporation. Only the ac of the Corporation are included herein; therefore, these financial statements
Carlsbad.
The accounting policies of the Corporation conform to generally accepted accc principles as applicable to governmental units. The following is a summary of th significant policies:
(a) Basis of Presentation
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purport to represent the financial position or results of operations of the (
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The accounts of the Corporation are organized on the basis of funds account group, each of which is considered to be a separate accounting The operations of each fund and account group are accounted for by prov separate set of self-balancing accounts that comprise its assets, liabilitie balance, revenues, and expenditures. The various funds and the accouni are summarized by type in the financial statements. The fund types 2 account group used by the Corporation are as follows:
GOVERNMENTAL FUND TYPE
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Governmental funds are used to account for the Corporation's expc
financial resources and related liabilities. The measurement focus i
determination of changes in financial position. The following is the Corpo governmental fund type:
Debt Service Funds
Debt service funds are used to account for the accumulation of resources
payment of, general long-term debt principal, interest and related costs.
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GENERAL LONG-TERM DEBT ACCOUNT GROUP
This account group is used to establish accounting control and accountab the Corporation's general long-term debt. It is used to account for all 101 obligations of the Corporation. a
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a CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
(Continued)
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(I I Organization and Summarv of Significant Accounting Policies, (Continued)
(b) Measurement Focus and Basis of Accounting
Governmental fund types are accounted for on a "spending" measurement
Accordingly, only current assets and current liabilities are generally inch their balance sheets, and the reported fund balance provides an indica available, spendable resources. Operating statements for governmenta
types report increases (revenues) and decreases (expenditures) in avi
Governmental fund types use the modified accrual basis of accounting. Rc
are recognized when susceptible to accrual (Le-, both measurable and ava Available means collectible within the current period or soon enough the to be used to pay liabilities of the current period. Revenues that are i
Governmental fund expenditures are recognized when the liability is in except for principal and interest on long-term debt, which is recognize
due.
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a spendable resources.
a include interest income.
(c) Budgets e
The Corporation does not adopt an annual budget, therefore, no buc
comparisons are presented.
(d) Investments
Investments are stated at cost or amortized cost which approximates value.
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(e) Total Columns
Total columns on the combined statements are captioned "Totals (Memo
Only)" to indicate that they are presented only to facilitate financial a Data in these columns do not present financial position, results of operat changes in fund balances in conformity with generally accepted acc principles. Such data is not comparable to a consolidation. In eliminations have not been made in the aggregation of this data.
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CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
(Continued)
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(2) Cash and Investments
Authority for Investments
The Trust Agreement by and among the Bank of America, as successor trust1 Corporation and the City of Carlsbad, dated June 1, 1988, authorizes the trur invest in Federal Treasury Securities, Federal Agency Securities, interest-1
demand or time deposits, obligations of U.S. corporations having assets in exc
$500,000,000 and carrying one of the three highest ratings by Moody's and Stand; Poor's Corporation, repurchase agreements, money market funds, commercia'
rated A-1 by Standard and Poor's Corporation and P-1 by Moody's Commercia
with original maturities of not more than 180 days, bankers acceptance
maturities of not more than 270 days, and tax-exempt obligations rate in one
three highest ratings by Moody's and Standard and Poor's Corporation.
Classification of Investment by Credit Risk
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As defined in Governmental Accounting Standards Board Statement No, 3, invei in securities are categorized in the following manner:
Category 1 -
Category 2 -
Investments that are insured or registered, which are held Corporation or its agent in the Corporation's name.
Uninsured and unregistered investments, for which the securi
held by the counterparty's trust department or agent
Corporation's name.
Uninsured and unregistered investments, for which the securi held by the counterparty or by its trust department or agent,
in the Corporation's name.
As of June 30, 1995, the Corporation had $5,838 invested in money market funds and $869,000 invested in a guaranteed investment contract which
categorizable by credit risk.
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Category 3 - e
(3) Lease Aweements
Under the terms of a lease agreement dated June 1, 1988, the City has leased 1 known as Hosp Grove to the Corporation and the Corporation has leased back
City the same property and all improvements constructed thereon. The Ag requires the City to pay semiannual lease payments to the Corporation equa debt service requirements of the Certificates of Participation issued
Corporation on June 1, 1988 (the Certificates). Under the terms of tk agreement between the City and the Corporation, the City is required to ma payments on January 15 and July 15 until the Certificates have been paid
During the year ended June 30, 1995, the City made its lease payments on Jai and July 19, respectively. In addition, the City must pay all taxes, asse!
insurance, maintenance and utilities on the property and its improvements. T
expires on August 1, 2008 or upon the date of retirement of the Certificat lease has been accounted for as a direct financing lease.
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0 CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Notes to Combined Financial Statements
(Continued)
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/4) Certificates of Participation
The Corporation issued the Certificates on June 1, 1988 in the amount of $8,6 pursuant to a Trust Agreement by and among the Corporation, the City a
Trustee. The Certificates represent an undivided interest in the lease payment by the City of Carlsbad to the Corporation. Interest is payable at rates rangin 5.75% to 7.6% per annum. The Certificates mature on August 1 of each year t 2008. Certificates maturing on August 1, 2008 are subject to mandatory redemp
0 service requirements below. Certificates maturing on or after August I, 19 subject to call in whole or in part at the option of the Corporation at prices I from 100% to 102% of the principal amount of the Certificates. The Corpora required to maintain a debt service reserve of $869,000. As of June 30, 19' balance is $89 1,425.
Debt service requirements to maturity for the Certificates are as follows:
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August 1 in each year on or after August 1, 2001, in amounts reflected in tf
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Year ending June 30,
1996 $ 866,733 1997 859,795 1998 860,985 1999 859,880 2000 861,030 2001-2005 4,276,330 2006-2009 3.387.200
a 11,971,953
Less amounts representing interest (4.71 1.953 )
$ 7.260.000
Changes in general long-term debt from the previous year result from paymi principal on the Certificates.
At June 30, 1995, the Corporation was in compliance with all significan covenants.
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IS) Fund Balances
The reserve for arbitrage represents amounts which may be owed to the government under the Tax Reform Act of 1986.
The reserve for debt service represents resources legally restricted to the payr
general long-term debt principal and interest maturing in future years.
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0 SUPPLEMENTAL DATA
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Q CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combining Balance Sheet - Debt Service Funds
June 30, 1995 @
Lease Pavment Reserve Tot
0 Assets
Cash and investments held by trustee $ 5,838 869,000 874 Net investment in direct financing lease 6,368,575 - 6,368
Interest receivable 23 29.964 29
Total assets $6 - 37 4.436 898.9647.273 e
Liabilities and Fund Balances
Liabilities: 6.368.575 - 6.36t
Total liabilities 6,368,575 - 6.361
Deferred revenue
Fund balances : Reserved for arbitrage 13,400 - 1: a
Reserved for debt service (7.539) 898.964 89'
Total fund balances 5,861 898.964 901
b Total liabilities and fund balances L374.436 898.9647.27:
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CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds
e Year Ended June 30, 1995
Lease Payment Reserve - To
Lease payments $798 > 443 - 798
Interest on investments 1.472 72.913 __ 7'
Total revenues 799.915 72.913 87:
*
Revenues :
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Expenditures: Principal 295 > 000 - 29!
Interest 571 > 873 - 57:
Administrative 3.984 -
Total expenditures 870.857 - - 87(
Excess (deficiency) of revenues over (under) expenditures (70.942) 72.913 2
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Other financial sources (uses): Operating transfers in 73 , 739 - 7
Operating transfers out - (73.739) fl
Total other financing sources (uses) 73,739 (73.739) -
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Excess (deficiency) of revenues and
other financing sources over (under) *
expenditures and other financing uses 2 , 797 (826)
Fund balances at beginning of year 3.064 899.790 90
0 Fund balances at end of year LuiiL 898.964%
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Financial Statements and Supplemental Data
Year Ended June 30, 1995
(With Independent Auditor's Report Thereon)
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Financial Statements and Supplemental Data
Year Ended June 30, 1995
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TABLE OF CONTENTS
* 1
Independent Auditors' Report
Financial Statements:
Combined Balance Sheet - All Governmental Fund Types and Account Group
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
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Notes to Combined Financial Statements
Supplement a1 Data:
Combining Balance Sheet - Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds
Schedule of Insurance Coverage
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CERTIFIED PUBLIC ACCOUNT
1100 MAIN STREET, S
IRVINE, CALlFORNli 0 %SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 4
CONRAD
The Board of Directors Parking Authority of the City of Carlsbad Carlsbad, California
Independent Auditors' Report
We have audited the accompanying component unit financial statements of the P Authority of the City of Carlsbad (the Authority), as of and for the year ended Ju 1995, as listed in the accompanying table of contents. These component unit fir statements are the responsibility of the Authority's management. Our responsibilit: express an opinion on these component unit financial statements based on our audit.
We conducted OW audit in accordance with generally accepted auditing standards.
standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit ir examining, on a test basis, evidence supporting the amounts and disclosures in the fir statements. An audit also includes assessing the accounting principles used and sign estimates made by management, as well as evaluating the overall financial sta
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the component unit financial statements referred to above present fa all material respects, the financial position of the Parking Authority of the City of C as of June 30, 1995, and the results of its operations for the year then ended in coni
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion of the component unit fi statements taken as a whole. The combining financial statements and schedule listed accompanying table of contents are presented for purposes of additional analysis and a required part of the component unit financial statements of the Parking Authority City of Carlsbad. Such information has been subjected to the auditing procedures apl
the audit of the component unit financial statements and, in our opinion, is fairly st all materia1 respects in relation to the component unit financial statements taken as a
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August 4, 1995
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MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combined Balance Sheet - All Governmental Fund Types and Account Group
June 30, 1995
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Governmental Account Fund Twes Group
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Debt Long-term (I
General Service Debt - Assets and Other Debits
0 Cash and investments (note 2) $91,609 88,179 -
Net investment in direct financing - 34,681 -
Accrued interest receivable 1,344 2,140 -
Due from other funds (note 5) - 4,816 -
Amount available in debt service funds - - 90,319
Amount to be provided for retirement of general long-term debt - - 34.681
leases (note 3)
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Total assets and other debits %92.953129.816 125.ooo
e Liabilities and Fund Balances
Liabilities: Due to other funds (note 5) $- 4,816 -
Deferred revenue - 34,681 - Revenue bonds payable (note 4) e - 125.000
- 39.497 125.000 e Total liabilities
Fund balances :
Reserved for debt service - 90,319 - Unreserved - undesignated 92,953 - -
92.953 90.319 - 0 Total fund balances
Total liabilities and fund
balances $92.953129.816 l2LQQQ
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See accompanying notes to combined financial statements.
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e PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types
Year Ended June 30, 1995 a
Totals Genera 1 Debt Service (Memorandum e
Revenues : Lease payments $67,955 732,398 800,3!
Interest income 23.701 14.076 37.7':
838.1: Total revenues 91.656 746.474 0
Expenditures: Principal retirement - 225,000 225,0(
Principal redemption - 725,000 725,0(
Interest - 78,000 78,0(
Premium on redemption - 6,750 6,7!
Administrative 3.220 - 3.2:
Total expenditures 3.220 1,035,694 1.038.9
Excess (deficiency) of
revenues over (under) expenditures 88.436 (289.220) (200 ,, 7
Operating transfers in 1,517 166,294 167,8 f 167.811 ) (167.8
Return of excess lease payment - 944 94 *
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Other financing sources (uses):
Operating transfers out -
Total other financing
Excess (deficiency) of revenues and other financing
sources over (under) expenditures and other financing uses 89,953 (290,737) (200,7
Fund balances at beginning of year 3,000 381.056 384.0
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sources (uses) 1.517 (1 37) I
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e Fund balances at end of year $92.953 90.319 183.2
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See accompanying notes to combined financial statements.
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
Year Ended June 30, 1995
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/1) Organization and Summary of Significant Accounting Policies
The Parking Authority of the City of Carlsbad (the Authority) was created purs the Parking Law of 1949 and was authorized by the City Council on April 19, 1' the purpose of providing and expanding public parking facilities for the (
Carlsbad (the City). A five-member commission appointed by the City Council i the Authority. The Authority is not subject to federal or state income taxes.
The Authority is an integral part of the reporting entity of the City. The acco the Authority have been included within the scope of the general purpose fi
statements of the City because the City Council has financial accountability o operations of the Authority. Only the accounts of the Authority are included therefore, these financial statements do not purport to represent the financial r or results of operations of the City of Carlsbad.
The accounting policies of the Authority conform to generally accepted accl principles as applicable to governmental units. The following is a summary of th significant policies:
la) Basis of Presentation
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a The accounts of the Authority are organized on the basis of funds and an i group, each of which is considered to be a separate accounting entit operations of each fund and account group are accounted for by prov separate set of self-balancing accounts that comprise its assets, liabilitii balance, revenues, and expenditures. The various funds and the accoun are summarized by type in the financial Statements. Fund types and the group used by the Authority are as follows:
GOVERNMENTAL FUND TYPES
Governmental funds are used to account for the Authority's expendable f
resources and related liabilities. The measurement focus is upon detern of changes in financial position. The following are the Authority's goveri fund types:
General Fund
The general fund is the general operating fund of the Authority. It is account for all financial resources except those required to be accountel another fund.
Debt Service Funds
Debt service funds are used to account for the accumulation of resources payment of, general long-term debt principal, interest and related costs.
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
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(1) Organization and Summary of Significant Accounting Policies, (Continued)
[a) Basis of Presentation. (Continued) *
GENERAL LONG-TERM DEBT ACCOUNT GROUP
This account group is used to establish accounting control and accountabil the Authority's general long-term debt. It is used to account for all lonj
obligations of the Authority.
Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a %pending" measuremeni Accordingly, only current assets and current liabilities generally are inch their balance sheets, and the reported fund balance provides an indica * available, spendable resources. Operating statements for government2 types report increases (revenues) and decreases (expenditures) in a\ spendable resources.
Governmental fund types use the modified accrual basis of accounting. RE are recognized when susceptible to accrual (i.e., both measurable and ava Available means collectible within the current period or soon enough the to be used to pay liabilities of the current period. Revenues that are i include interest income.
Governmental fund expenditures are recognized when the liability is in
except for principal and interest on long-term debt, which is recognize
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{c) Budgets
The Authority does not adopt an annual budget; thus, no budgetary comF are presented. e fm
Investments are stated at cost or amortized cost which approximates value.
e le) Total Columns
Total columns on the combined statements are captioned "Totals (Memc Only)'' to indicate that they are presented only to facilitate financial i
Data in these columns do not present financial position, results of operat
changes in fund balance in conformity with generally accepted acc
principles. Such data is not comparable to a consolidation. Ir eliminations have not been made in the aggregation of this data. 0
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
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12) Cash and Investments
Cash and investments held by the Authority at June 30, 1995 consisted of the fo'
Depos i t s $ 91,409 Investments 88,179
$179.788
e The Authority's investment policy and state statutes authorize the Authority t in obligations of the U.S. Treasury, its agencies and instrumentalities, cow
paper rated A-1 by Standard and Poor's Corporation or P-1 by Moody's Con
Paper, banker's acceptances with a maximum maturity of 270 days, repurch reverse repurchase agreements, certificates of deposit with national and state or chartered banks or federal or state savings and loan associations, money mal
mutual funds whose portfolios consist of one or more of the foregoing investme Diego County investment pool and the State Treasurer's investment pool.
Under the California Government Code, a financial institution is required tc deposits made by state or local governmental units by pledging securities he1
form of an undivided collateral pool. The market value of the pledged securitic
collateral pool must equal at least 11O0/o of the total amount deposited by tl-
agencies.
As of June 30, 1995, all of the Authority's deposits were classified as categorq
bank balance equals the carrying amount.
Classification of Investment bv Credit Risk
As defined in Governmental Accounting Standards Board Statement No. 3, invc in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are helc Authority or its agent in the Authority's name.
Category 2 - Uninsured and unregistered investments, for which the secur
held by the counterparty's trust department or agent Authority's name.
Uninsured and unregistered investments, for which the secur
held by the counterparty or by its trust department or agent.
in the Authority's name.
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Category 3 - a
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
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(2) Cash and Investments, (Continued)
Cat ezory Carrying Marke e Tpe of Investment 1 2 3 Amount Va 1 ut
U.S. Treasury notes $ - 64,818 A 64.818 65,001
L 64.8_18& 64,818 65,OO
e Investment in money
market mutual funds - Pacific Horizons 23,361 23.36
Total investments $88.17988.36
0 /3) Lease Agreements
Leases have been executed between the Authority and the City under which th agreed to make annual payments of $138,000 and $174,000 for the lease of a 1
facility and its subsequent expansion, respectively. The leases have been recor the Authority as direct financing leases.
Lease payments are due quarterly and terminate on the date of retirement
related revenue bonds. Under the terms of the lease agreements and thc resolutions, Debt Service Funds in excess of the next interest and principal pal may be used as follows: First, to maintain a reserve of $68,000 and $l!
respectively, for the 1969 and the 1981 Bonds. Next, to pay the General Fund f
expenses of the Authority and to maintain the fund balance at $3,000, and t
credits to the City for rentals due under the leases. Due to the excess monies 1969 Bond Service Fund during the fiscal year ending June 30, 1995, no lease pa:
were required from the City under the parking facility lease. A lease paym $800,353 was made during the fiscal year ending June 30, 1995 from the City unc
expansion lease for redemption of all the outstanding 1981 bonds.
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(4) Revenue Bonds Payable
The following is a summary of changes in revenue bonds payable for the yea1 June 30, 1995: a
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
(Continued)
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(4) Revenue Bonds Payable. (Continued)
Series 1969 Series 1981 To.
June 30, 1994 $250,000 825,000 1,07: Revenue bonds payab 1 e
Bonds retired/redeemed 125.000 825.000 951
Revenue bonds payab 1 e,
June 30, 1995 $125.ooo - 12
In February 1995, all the outstanding 1981 bonds were called. The remaining 1
of revenue bonds payable represents the 1969 bonds, with the final principal p of $125,000 due on October 1, 1995. Interest is payable on October 1 and Ap
6.4% per annum.
At June 30, 1995, the Authority was in compliance with all significant debt cove
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0 (5, Due To and From Other Funds
The following table shows amounts due from other fmds within the Authority t
funds within the Authority at June 30, 1995:
Inter fund Inter f und Receivable Pavab 1 e e
Bond Service Funds: Series 1969 $4,816 -
Reserve Funds : e Series 1969 - 4,816
Totals $4.816 4.816
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0 PARKING AUI'EORITY OF TEE CITY OF CARLSBAD
Combining Balance Sheet -
Debt Service Funds
June 30, 1995 e
Bond Service Funds Reserve Funds e Assets Series 1969 Series 1981 Series 1969 Series 1981-
Cash and investments $17,431 - 70,748 -
Net investment in direct financing lease 34,681 - - -
Accrued interest receivable 72 - 2,068 -
Due from other funds 4.816 - - -
- Total assets $57.ooo - 72.816
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Liabilities and Fund Balances
Liabilities: - 4,816 - Due to other funds $-
Deferred revenue 34.681 - - -
Total liabilities 34.681 - 4.816 -
Fund balances - reserved for debt service 22.319 - 68.000 -
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- 72.816 Total liabilities and fund balances s57.ooo -
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PARKIHG AUlXORITY OF TEIE CITY OF CARLSBAD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Debt Service Funds
Year Ended June 30, 1995 0
Bond Service Funds Reserve Funds * Series 1969 Series 1981 Series 1969 Series 1981 :
Revenues :
7 Lease payments $- Interest income 2.740 635 5.744 4,957 -
732,398 - -
Total revenues 2.740 733.033 5.744 4,957 7
Expenditures:
Principal retirement 125,000 100,000 - - 1
Principal redemption - 725, OOO - -
Interest 12,000 66,000 - -
Return of excess lease payment - 537 - 0 Premium on redemption - 6,750 - -
407 --
Total expenditures 137, 000 898.287 - 407 lJ
Excess (deficiency) of revenues over e (under) expenditures 1134.260) ( 165.254) 5.744 4.550 4
Other financing sources (uses): Operating transfers in 5,744 160,550 - -
Operating transfers out (338) (1.179) 15.744) (160,550) _L
a Total other financing sources (uses) 5.406 159.371 15.744) (160.550) -
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses (128,854) (5,883) - (156,000) (:
Fund balances at beginning of year 151.173 5.883 68.000 156.000 -
- 68.ooo -= Fund balances at end of year s22.319- -
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0 PARKING AUTHORITY OF THE CITY OF CARLSBAD
Schedule of Insurance Coverage
Year Ended June 30,1995
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Insurance coverage maintained by the City of Carlsbad with the Authority lis
additional insured at June 30, 1995 includes:
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TvDe of Coverage Amount of Coverage Term
All risk including rental income $500,000,000 05/15/95 to 05/1
Mobile equipment 5,000,000 05/15/95 to 05/1
Honesty Blanket Bond 1,500,000 04/16/95 to 04/1 0 Valuable papers 10,000,000 05/15/95 to 05/1 Service interruption 5,000,000 05/15/95 to 05/1
e Effective January 1, 1986, the Authority has not been covered under a liability in policy but has been included under the City of Carlsbad's self-insurance program.
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