HomeMy WebLinkAbout1996-06-18; City Council; 13705 Exhibit 3; Comprehensive Annual Financial Report June 30, 1997I’Ld c -1 q--= Lee Rautenkranz .ti ewU?sTr3 City Clerk
CITY OF CARLSBAD $/ 1 (619 6
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I (“r A 1L I FO R N I A
FOR THE F~SCAL YEAR ENDED
JUNE 30, I997
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COMPREHENSIVE ANNUAL
FINANCIAL RIZPORT
FISCAL, YEAR ENDED
JUNE 30,1997
1200 Carlsbad Village Drive, Carlsbad, CA 92008
760-434-2867
E Prepared by the Finance Department
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e CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30,1997
TABLE OF CONTENTS
w
INTRODUCTORY SECTION:
Table of Contents 1
Letter of Transm ittal 1
29 Location Map
List of City Officials 30
Organization Chart 31
Boards, Commissions and Committees 32
FINANCIAL SECTION:
Independent Auditors’ Report 33
General Purpose Financial Statements:
0 Combined Balance Sheet - All Fund Types and Account Groups
Changes in Fund Balances - All Governmental Fund Types
34
0 Combined Statement of Revenues, Expenditures and 37
0 Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Governmental Fund Types 38
I in Retained Earnings - All Proprietary Fund Types 40
Combined Statement of Cash Flows - All Proprietary Fund Types 41
0 Combined Statement of Revenues, Expenses and Changes
0
e Notes to General Purpose Financial Statements 43
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CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1997
TABLE OF CONTENTS, (CONTINUED)
&
Supplemental Data:
Governmental Funds:
General Fund:
0 Schedule of Revenues - Budget and Actual (Budgetary Basis)
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
80
81
0 Comparative Schedule of Revenues 82
0 Comparative Schedule of Expenditures 83
Special Revenue Funds:
0 Combining Balance Sheet 86
0 Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 88
Combining Schedule of Revenues and Expenditures - Budget and
Actual (Budgetary Basis) 90
0
0
Debt Service Funds:
0 Combining Balance Sheet I oc
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 101
Redevelopment Bonds Debt Service Fund - Budget and Actual
(Budgetary Basis) 102
0
0
Capital Projects Funds:
0 Combining Balance Sheet 106
0 Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 108
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1 0 Combining Balance Sheet 112
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B CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30,1997
TABLE OF CONTENTS, (CONTINUED)
Paae
Proprietary Funds:
Enterprise Funds:
0 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 113
0 Combining Statement of Cash Flows 114
Internal Service Funds:
N 0 Combining Balance Sheet 118
1
0 Combining Statement of Revenues, Expenses and Changes in
Retained Earnings 119
0 Combining Statement of Cash Flows 120
Fiduciary Funds:
Agency Fuinds:
0
Account Groups:
General Fixed Asset Account Group:
0 Schedule of General Fixed Assets by Function 128
0 129 I- 0 Schedulle of General Fixed Assets by Source 130
132
co Combining Statement of Changes in Assets and Liabilities 124
Schedule of Changes in General Fixed Assets by Function
Schedule of Annual Debt Service Requirements
... Ill
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1997
TABLE OF CONTENTS. (CONTINUED)
&
STATISTICAL SECTION:
(Not covered by Independent Auditors' Report)
0 General Expenditures by Function, Last Ten Fiscal Years 138
0 General Revenues by Source, Last Ten Fiscal Years 140
0 Ratio of General Bonded Debt to Assessed Valuation and Net Bonded Debt Per Capita, Last Ten Fiscal Years 142
0 Computation of Legal Debt Margin 143
0 Schedule of Direct and Overlapping Bonded Debt 144
0
145 Ratio of Annual Debt Service for General Bonded Debt to Total Governmental Expenditures, Last Ten Fiscal Years
0 Water Enterprise - Revenue Bond Coverage, Last Ten Fiscal Years 146
0 Schedule of Assessed Valuation, Last Ten Fiscal Years 148
0 Construction and Business Activity, Last Ten Fiscal Years 150
0 151
0
Property Tax Levies and Collections, Last Ten Fiscal Years
Special Assessment Billings and Collections, College Boulevard Assessment District, Last Ten Fiscal Years 152
0 Demographic Statistics, Last Ten Fiscal Years 153
Principal Employers, 1996-1 997 154
0 Principal Taxpayers, 1996- 1997 155
0 Top 30 Sales Tax Generators, 1996-97 156
0 Miscellaneous Statistical Information 157
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b I City of Carlsbad
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October 31, 1997
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD B Carlsbad, Californlia
1996-97 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL
We are pleased to present the 1996-97 Comprehensive Annual Financial Report of the City of
Carlsbad to the City Council and the City Manager. This report includes financial statements of
the City, the Housing Authority of the City of Carlsbad, the Carlsbad Public Improvement
Corporation, the Carlsbad Redevelopment Agency and the Carlsbad Municipal Water District,
as well as the opinion of our independent auditors, Conrad & Associates. The completion of
this independent audit is an important part of the total financial management program for the
City of Carlsbad.
The information found in this report is provided by management to the Council and the public to
assist those intertested in understanding the fiscal condition of the City as of June 30, 1997.
Responsibility for both the accuracy of the data, and the completeness and fairness of the
presentation, including all disclosures, rests with the City. To the best of our knowledge and
belief, the enclosled data are accurate in all material respects and are reported in a manner
designed to present fairly the financial position and results of operations of the various funds
and account groups of the City of Carlsbad. All disclosures necessary to enable the reader to
gain an Understanding of the government's financial activities have been included.
Backa rou nd
Carlsbad is located about 35 miles north of the City of San Diego on the southern California
coast. The City is governed by a five member City Council under the CounciVManager form of
government. Carlsbad is a general law city incorporated in 1952. The City covers about 42
square miles and has a population of 70,100. Industries in the area include a major regional
shopping center, 16 auto dealers, 25 hotels offering 2,200 rooms for tourist lodging, high tech,
multimedia, comniunication and biomedical businesses, electronics, golf apparel and equipment
manufacturers, several business and light industry parks, and numerous land developers
building single and multi-family housing in a variety of community settings. As reported during
May 1997 in The North County Times, the Corporate Technology Information Services indicates
that Carlsbad is one of the top 10 cities for high-tech employment in Southern California.
1200 Carlsbad Village Drive Carlsbad, CA 92008-1989 (760) 434-2867 FAX (760) 434-8164
1
Services Provided by the City
The City provides the full range of services normally associated with a municipality incluc
police, fire, parks and recreation, library, planning and zoning, building and engineering, vari
maintenance services and administration.
Carlsbad Municipal Water District, a subsidiary district of the City. The City Council serves
the Board of Directors for the Carlsbad Municipal Water District. Solid waste collectiot
provided through a franchise arrangement with a local refuse collection service.
In addition to the usual City services, Carlsbad offers a variety of programs to help IC
residents and businesses. The Carlsbad Police Department initiated a school resource off
program in 1996-97, that maintains order in and around schools to deter crime throi
enforcement, and creates positive interaction among students, citizens and educators. The (
also operates a redevelopment agency that encompasses 0.4 square miles of the downtc
area, as well as a housing authority that provides 499 low and moderate income families \i
housing assistance. The City's literacy program, funded by the General Fund, provides ac
education to local area residents. Older Carlsbad residents receive assistance through
City's senior citizen programs. Also, the City provides major support for the Convention i
Visitors Bureau. Finally, the City has reserved over $300,000 for support of the arts,
programs, and the purchase of works of art.
The City provides water services through
Significant Events and Accomplishments
During 1996-97 the City experienced many significant events and accomplishments that rr
not be evident from a review of the financial statements. Some of the more important eve
are shown below.
Harmony Grove Fire - On October 21, 1996, the costliest disaster in the history of Carlst
occurred. An estimated 1,000 firefighters battled a fire encompassing 8,600 acres E
destroying 122 homes in Carlsbad, Encinitas, San Marcos and unincorporated areas of 1
county. Over 3,600 acres and 54 homes burned to the ground in an area of Carlsbad cal
Harmony Grove. The price tag for the devastation in Carlsbad was put at over $21 millic
while total damages and costs from the fire were estimated at over $52 million. The Cit
Emergency Operation Center (EOC) was called into operation at 6:28 p.m. on October 2lSt, a
remained opened until 4:OO p.m. the following day. The EOC team, comprised predominar
of 30 middle managers, provided field support, aiding staff and citizens with security, safe
food, fuel, and strategic direction, plus the coordination of all City departments. Total cost
City resources used in the emergency response was $319,000.
Erosion control work was also completed with the assistance of the City of Laguna Beach a
an engineering company. In addition, the need for better communication between public saft
units and the command center was realized, and in the 1997-98 Operating Budget, funding
the 800 MHz Regional Communication System is in place. The Regional Communicati
System (RCS) is designed to achieve the goal of replacing the aging, public safe
communications infrastructure in the most efficient manner, for the benefit of the RCS partnc
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and the residents of San Diego County. This new system will improve inter-agency and intra
agency communications and provide the needed technology for all 800 MHz participants tc
meet their communication needs in the future.
Proposition 21 8 - On November 5, 1996, the voters approved Proposition 21 8, also known a:
“Voter Approval for Local Government Taxes, Limitations on Fees, Assessments and Charges”
This proposition requires voter approval for tax levies, requires approval by a majority o
property owners for all assessments, requires majority property owner approval or two-third:
electorate approval for property related fees and charges, and authorizes the use of thc
initiative process to repeal or reduce local taxes, fees, charges, and assessments. There have
been hundreds OF pages of legal opinions and interpretations published by attorneys, althougt
the court system has not had an opportunity to rule on any of the cases yet. In addition, thc
legislature has not adopted any implementing guidelines which might assist cities or counties ir
sorting out the complex issues. Until the courts or the legislature provide additional guideline3
for the implementation of the proposition, cities and counties are required to comply witk
Proposition 218 to the best of their abilities.
The City has performed a risk assessment of the those amounts which might be affected bp
Proposition 218, iand identified two assessrnents that might be at risk: (1) the 1972 Act lighting
and landscaping district, and (2) the County Service Area (CSA) fee for the 800 MHz radic
system. If both of these revenue sources were lost and the programs were absorbed into the
General fund, it would require a reduction sf up to $2,000,000 or 4.4% to the proposed 1997-98
budget.
Construction of Capital Projects - The City’s aggressive capital building program continued in
1996-97 with an outlay of approximately $14.9 million. Increased revenues have reflected the
recovering economy since 1994-95, with the most noticeable increase related to the building
industry. As development increases, the demand for development-related services and new
facilities increases. During the next five years, Carlsbad is projected to spend over $1 93 million
on capital projects in order to meet and/or exceed the City’s Growth Management Plan
requiring a standard level of facilities be available to meet these increased demands. Carlsbad
is dedicated to improving the infrastructure of the City into the foreseeable future through
implementation of its long range Capital Improvement Program.
Several major capital projects were completed or started in 1996-97 including the Carlsbad
5oulevard Shore Protection WaEI, the Lia Costa Avenue interchange, design work on the
Cannon Road interchange, work on the westerly extension of Cannon Road, phase I of
Poinsettia Park, and the design of the Carlsbad Municipal Golf Course.
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Commercial Development - The main reason for the increased n
residential building projections in the near future, is the development of
area in western Carlsbad referred to as Carlsbad Ranch. Carlsbad Rat
encompasses over 2.9 million square feet of commercial and indust
properties. The Gemological Institute of America and the Natio
Association of Music Merchants have both completed the move of tk
headquarters to this area in 1996-97. The Carlsbad Company Stores
300,000 square foot specialty outlet center, is currently under construct
and is expected to open in October 1997. This will be followed by
opening of the LEGOLAND California family theme park, a park primarily for children ages 2.
based on the LEG0 building bricks, in 1999-2000. Also in the Carlsbad Ranch project area i
sites for a community hotel, the Pan Pacific Resort, the Carlsbad Municipal Golf Course
microwinery, and a research and development business park.
The Carlsbad Ranch Assessment District was officially formed and approved in July 1997, \n,
the issuance of $10.2 million of limited obligation improvement bonds (1915 Act), to acqL
certain public improvements to and along Cannon Road, Palomar Airport Road, Armada Dr
and Leg0 Drive, including street improvements, street lighting, landscaping utilities a
underground improvements (water, storm drain, sewer, reclaimed water, and undergrounding
existing electric facilities) and a pedestrian walkway. Repayment of the bonds will come frc
assessments on the properties within the Carlsbad Ranch area.
The City Council is in the process of making special provisions ensuring their final review a
approval of commercial activities in the area surrounding Carlsbad Ranch. This will enal
Carlsbad residents to continue to enjoy the quality of life to which they have becor
accustomed.
Wetlands Restoration - Batiquitos Lagoon, one of the City's three lagoons to the Paci
Ocean, began its wetlands restoration in 1994 and was completed in 1997, with the offic
dedication in July of 1997. The wetland restoration project included dredging the lagoc
construction of a channel and off-shore jetties to restore full tidal flushing, and restoration of fi
and wildlife habitat. Nesting areas for various species of birds have reported higher populatio
of threatened wildlife. As mitigation for its recent expansion, the Port of Los Angeles completc
funded the $30 million construction project. The City will monitor the project for the next t
years in order to evaluate the vegetation progress and effect on fish and wildlife habitat.
Financial Information System (FIS) - The City is in the midst of a multi-year project to repla
the current financial information and reporting system. The FIS project is expected to chanl
the way the City does business, to improve collection and reporting of financial data throughc
the City, and to aid decision-makers with improved information.
The FIS project began in 1994 with an analysis of the City's needs and the development 01
multi-year plan. Hardware and software vendors were evaluated and selected. The Cit!
microcomputer hardware and software were upgraded, and employees trained in the nc
technology. Core financial systems were implemented in January 1997, which included ti
general ledger, budgeting, purchasing, fixed assets, accounts receivable and accounts payat
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modules. The second phase of the implementation began in February 1997, and include
human resources, payroll, permits and cash receipts. The implementation date for thesi
modules is January 1998.
Economic Deve!lopment - The City's Economic Development Program goal is to achievl
economic growth and stability through proactive efforts to attract new businesses, industries
and investments to the City to provide a strong economic base, and to assist existin!
businesses and industry with growth and expansion needs. The first of two surveys c
businesses located within the City's industrial corridor was completed in 1996 with a very higl
rating on physical appearance and overall quality of life. The majority of the surveyec
businesses expected to expand in the next five years, and in 1996-97 the City has seen some
of this expansion occur. Council adopted a five year Economic Development Strategic Plan tc
provide clarity on the City's role and direction in economic development, as well as presen
strategies and action plans for building relationships with the business community and othe
public and private agencies. Six areas of economic focus were identified including Uhe industriz
corridor, tourist-oriented and regional commercial development, transportation and severs
other land use ayeas. Five components or strategies were developed along with action plan!
for the years 1996 through 2000. 1
During the year, the Economic Development department of tht
City in cooperation with Carlsbad Economic Enhancemen
Council (CEEC), worked on building stronger relationships witt
companies already located within the City. Through face-to
face meetings with mid-sized companies in the City, issues witt
existing businesses and available resources to assist these
organizations were discussed. This was an integral part of tht
five year Economic Development Strategic Plan established ir
1996. k Strategic Planning - During 1995-96, the City embarked on i
major strategic planning effort to focus change efforts throughout the organization on the
achievement of a common vision. Six Strategic Initiatives were identified: employec
excellence, communication, systems and structures, customer service, technology anc
resources, and fiscal stability. Three teams focusing on the first three initiatives have
completed their work. In 1996-97, the Strategic Change Team (SCT), a cross section o
employees from throughout the City, was formed as an advisory group to work with the
executive management team in implementing citywide strategic change efforts. The SC1
evaluated the Strategic Initiative Team (SIT) process and made recommendations for improvins
the process and phasing the implementation of the remaining three initiatives. Currently thc
SCT is creating communication guidelines for the City, beginning by identifying individua
behaviors that are valued by the City.
The City has also recently initiated an organizational redesign analysis; a process of reviewin<
the formal structure of the organization. This involves an analysis of all the City's departments
functions, service areas, and major processes. It examines the current structure anc
alternative structiires, as well as issues such as centralization versus decentralization. Finally I
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the organizational redesign will look at how all the parts of the City relate to each other. 1
analysis will be completed during fiscal year 1997-98.
Financial Statement Format
This report is designed to provide both summarized and detailed information on the operatior
each of the City's funds. The report is organized as follows:
Financial Section - This section contains the combined or summarized finanl
statements for all funds as well as the notes to the finanl
statements.
This section provides more detailed information on the actit
within each fund including revenues, expenditures, changes
fund balances, comparisons to budget figures and other rela
data.
Statistical Information - This section provides data on the City's fiscal activity over 1
past ten years including revenues, expenditures, debt, asses5
value, and demographic information.
Supplemental Data -
Accounting System and Budgetary 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 separi
function and legal restrictions on the use of resources. In the private sector, a corporati
may have many "subsidiaries" which make up the parent corporation. In the public sect
a city government may have a variety of "funds" that provide the basis for separatl
recording the financial data related to a specific activity. A fund is an accounting en;
with a complete set of self-balancing accounting records. Each fund has been establish
because of some restriction on the use of resources received by that fund. This rep
includes the transactions of all entities over which the City Council of the City of Carlsb
has authority (as defined by the Governmental Accounting Standards Board).
(2) The City's accounting system operates on a modified accrual basis for all governmen and agency type funds. Governmental funds include the General, Special Revenue, De
Service and Capital Projects Funds. A modified accrual system is one where:
revenues are recognized when they are both measurable and available to liquid:
liabilities of the current period; and b) expenditures are recognized when an event
transaction is expected to draw upon current spendable resources (rather than futi
resources).
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(3) The proprietary fund types (the Enterprise and Internal Service Funds) use the accrui
method of accounting. Revenues and expenses are recorded when earned or incurrec
respectively.
Internal controls exist within the accounting system to ensure safety of assets fror
misappropriation, unauthorized use or disposition, and to maintain the accuracy c
financial record keeping. These internal controls must be established consistent wit
sound management practices based on the costlbenefit of the controls imposed. The COI
of a control should not be excessive in relation to its benefit as viewed by Cit
management. The internal controls an existence within the City's system are sufficient t
ensure in all material aspects both the safety of the City's assets and the accuracy of th c financial record keeping system.
(4)
(5) Budgetary control is maintained through monthly reports on all revenue and expenditure
accounts as well as quarterly reports summarizing the financial position of the City. The
City Council1 has the authority to control the budget through adoption of a formal budget a
the beginning of each year and by amending the budget as necessary through the year
Expenditures should not exceed budgeted figures. All appropriations expire at year enc
unless specifically carried into the new fiscal year by Council action. The Carlsbac
Municipal Code requires that the Financial Management Director annually prepare i
budget for the City Manager showing estimated revenues and expenditures. 1
d Total City Operations
Throughout most of its history, Carlsbad's revenues were sufficient to meet anticipatec
expenditures. During the 1980's, the City experienced growth and a steadily increasing
revenue stream. The 1990's brought about major changes in the City's economics anc
budgeting strategies. Carlsbad saw its revenues slow as a very deep recession took hold ir
California. Property values fell, sales taxes dipped and development all but stopped. Durins
fiscal years 1993 and 1994, State legislation reallocated over $2.5 million in property taxes from
the City to the State - a permanent reduction in revenues and a loss from which the City has no
yet recovered.
The pattern of slow growth and a struggling economy has changed over the past few years.
The return of a stronger economy coupled with a pent-up demand for new homes and
businesses has iresulted in increased development activity. Property values have started to
increase in value, sales taxes rose and development is again progressing. City revenues for
1996-97 totaled $1 33.4 million, an increase of $28 million greater than last year's total of $1 05.4
million. The major factors for the revenue gain are increased residential and commercial
development, corresponding developer fees for future capital construction, a higher number of
sewer and water customers resulting in greater demand, and a growing economy.
During 1996-97, 'the City staff of 791 full- and part-time employees provided a complete range
of City services to the 70,100 residents and many businesses in Carlsbad. Spending on all City
programs totaled $94 million, an increase of $7 million from 1995-96. The biggest reason for
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Category
General Fund
Debt Service Funds
Capital Projects Funds
Enterprise Funds'')
Internal Service Funds'')
TOTAL REVENUES
Special Revenue Funds
1996-97 over
1996-9 7 1995-96 (under) 1995-96 Chan
$ 50,002 $ 42,401 $ 7,601 17.2
10,815 8,991 1,824 20.:
2,331 2,344 (1 3) (0.C
35,496 20,874 14,622 70. '
27,044 23,666 3,378 14.:
7,738 7,167 57 1 8.(
$1 33,426 $1 05,443 $27,983 26.5
Category
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects f-unds
Enterprise Funds(’)
Internal Service Funds‘’)
TOTAL EXPENDITURES
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1996-9 7 over 4
1996-97 1995-96 (under) 1995-96 Chang
$40,563 $38,015 $2,548 6.79
7,102 7,577 (475) (6.3) 3,396 3,538 (1 42) (4.0) 14,882 10,674 4,208 39.4
20,4.24 20,265 159 0.8
7,213 631 3 700 10.8
$93,580 $86,582 $6,998 8.10,
Category
Taxes
Licenses & Permits
State Subventions
Fines & Forfeitures
Interest Income
Other
TOTAL
Charges for Services
1996-97 over
1996-97 1995-96 (under) 1995-96 Char
$29,387 $27,586 $1,801 6.!
4,235 2,994 1,241 41.
2,886 2,676 21 0 7.'
7,897 4,442 3,455 77.;
31 8 335 (1 7) (5.'
1,158 1,402 (244) (1 7.4
4,121 2,966 1,155 38.!
$50,002 $42,401 $7,601 17.!
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0 Transient Occupancy Tax (TOT) Revenue - $3.7 million
The transient occupancy tax (hotel room tax) revenues showed a third year c
increased collections. TOT revenues rose $269,000 or 7.9% over 1995-96. Thi
growth follows three years of relatively flat revenues and is consistent with man
other cities in San Dilego County.
0 Franchise Tax Revenue - $1.5 million
Franchise taxes have been growing steadily over the years and show a 4.55
increase over last year's receipts. These taxes are generated from cable televisior,
gas (and electricity, and trash collection franchises. The higher revenues an
attributable to scheduled franchise fee rate hikes and increased trash collectior I fees.
0 Business License Tax Revenue - $1.5 million
Business license tax revenue leveled off in 1996-97, with only a 1.3% increase ii
revenue over last year's receipts. Carlsbad issues licenses for approximately 5,l O(
businesses each year, of which 4,550 are located within the City.
Vehicle License Fee Revenue -. $2.7 million
Revenue from vehicle license fees increased $1 74,000 this year. Vehicle licensc
fees are paid to the State in lieu of a personal property tax on vehicles an(
distributed to the City based on total population.
Development Related Revenues - $7.3 million
Revelnue related to development rose $3.7 million in 1996-97, 105.5% over the
amount received last year. Construction permits, planning and engineering fees,
building plan check ,fees and license tax on new construction all reported large
increases. A total of 873 building permits were issued during 1996-97 compared to
494 in 1995-96. The City also issued permits for 1,615,000 square feet oi
commercial/industrial space during 1996-97 compared to 860,000 square feet in
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1995-96.
The increase in building activity in Carlsbad was also reflected in the planning and
building department revenues. Building plan check and inspection revenues, ai
$944,000 were $385,000 or 69% higher than the previous year. Planning fees
realized an 85% growth in revenues, or $759,000 over the prior year. Much of this
increase is due to plan check fees for large development projects, such as Sambi,
Arroyo La Costa, Rancho Carrillo, Rancho Verde, and Carlsbad Ranch.
Additionally, license tax on new construction, at $397,000, exceeds the previous 1 year by $329,000.
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Category
General Government
Public Safety
Community Development
Library and the Arts
Community Services
TOTAL
1996-97 over
1996-97 1995-96 (under) 1995-96 Chan
$5,617 $4,831 $ 786 16.2
16,892 16,582 310 1 .z
7,596 6,778 818 12.1
2,822 2,731 91 3.1
7 , 636 7,093 543 7.i
$40,563 $38,015 $2,548 6.7
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The City's General Fund expenditures were $40.6 million, an increase of $2.5 million fror
1995-96. This is the first year since the beginning of the recession that expenditures hav
increased over pre-recession levels. Significant changes in departmental expenditures were a
follows:
0 General Government
Spending in general government and administrative programs increased b
$786,000. This increase was due mainly to $319,000 of costs associated with th
Harmony Grove fire. Other increases occurred as the result of several profession;
service contracts for projects in the Human Resource and Finance departments.
Public Safetv
Spending on public safety programs totaled $16.9 million, up $310,000 from 199f
96. Fire suppression and police technical services incurred the majority of thr
increase due to higher sta,ffing levels and increased overtime costs. The firc
suppression increase of $1 35,QOO was caused predominantly by the additional worl
done for the Palomar Airport ,fire suppression contract.
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0 Community DeveloDnnent
Expenditures in the community development departments rose $81 8,000 due tc
increased staffing and consultung costs related to the higher level of developmen
activity. The Engineering and Building Inspection departments were particularl!
impacted by the increased demand for their services.
0 Comrnunitv Services
Utilities, supplies and other park operating costs were higher than last year b!
$543 000. Recreation instructional classes, sports programs and special event:
showed increases dirlectly related to higher demand for recreational services.
Special1 Revenue Funds
The City's Special Revenue Funds, which account for the collection and use of special o
restricted revenues, received $10.8 million in total revenue in 1996-97. This is an increase o
$1.8 million or 20% over last year. The largest increase was in the Affordable Housing Fund
which received $1.4 million from a developer to initiate a home buyer assistance program. In
addition, with the increased development in Carlsbad, affordable housing impact fees have
seen a dramatic rise.
There are two new Special Revenue Funds in 1996-97 that support our Public Safety
department. These funds are the Citizens Option for Public Safety (COPS) program and the
Local Law Enforcement Block Grant. In addition to the new public safety funds, Special
Revenue Funds were increased by the moving of Donation and Bequest Funds as well as the
Calavera Heights Mitigation Fund from the Trust and Agency Funds classification to Special
Revenue Funds.
13
Category
Taxes
Intergovernmental
Charges for Services
Interest Income
Donations
Other
TOTAL
1996-97 over
1996-97 1995-96 (under) 1995-96 Chai
$ 1,522 $131 1 $ 11 0.
4,031 3,878 153 4.
2,693 2,243 450 20.
71 7 51 8 199 38.
195 0 195 100.
1,657 84 1 81 6 97.
$1 0,815 $8,991 $1,824 20.<
Category
Housing &Welfare
Library & Arts
Community Services
TOTAL
Public Safety
1996-97 over
1996-97 499596 (under) 1995-96 Chan
$ 518 $ 268 $250 93.3
3,695 3,958 (263) (6.6
543 499 44 8.8
2,346 2,852 (506) (17.7
$7,102 $7,577 $(475) (6.3:
Category
Taxes
Interest
Miscellaneous
1
E Total
1996-97 over %
1996-97 1995-96 (under) 1995-96 Change
$1,756 $1,780 3x24) (1.3)0/,
302 302 0 0.0
273 262 11 4.2
$2,331 $2,344 $(I 3) (0.6)%
Category
General Government
Interest 1 TOTAL
Principal
e 1996-97 over %
'1 996-9 7 1995-96 (under) 1995-96 Change
$ 19 $ 13 $6 46.2 %
992 1,086 (94) (8.7) 2,385 2,439 (54) (2.2)
$3,396 $3,538 $(I421 (4.0)%
Category
Taxes
Intergovernmental
Charges for Services
Property Owner Contrib.
Interest and Other
TOTAL
1996-97 over
1996-97 1995-96 (under) 1995-96 Char
$ 8,846 $ 6,271 $ 2,575 41.
7,167 2,476 4,691 189.
117 120 (3) (2.! 15,451 9,360 6,091 65.
3,915 2,647 1,268 47.'
$35,496 $20,874 $14,622 70.(
e
Capital Projects Funds
Efxpenditures
(in thousands)
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1996-97 over 2
1996-97 199596 (under) 1 995-96 Chang
General Government $ 1,326 $ 1,020 $ 306 30.09
13,556 9,654 3,902 40.4
$4,208 39.4?
Category
Capital Projects
TOTAL
Spending on capital projects totaled $14.9 million, an increase of 39.4% from 1995-96. Capit:
projects expenditures were down in 1995-96 since several major capital projects wer
completed in 1994-95. With the increased pace of development and the need to ensure thz
facilities are available to service the developing areas as well as the current residents, capita
project expenditures have once again increased. Projects planned for 1997-98 continue thi!
trend with $67.2 million of new capital projects budgeted in the new year. The City Counci
continues to set a high priority on the construction of quality infrastructure improvements.
Some of the key capital projects under construction or completed during this year include:
iE= $1 4,882 $1 0,674
. Seawall - Construction was completed in 1997 on a 2,500 foot shore protection wal -- between jetties adjacent to Agua Hedionda Lagoon. The project, which began ir
1996, extended the previous seawall and protects Carlsbad Boulevard frorr
potential damage created by intense storms or high wave action on the Pacific
Ocean. Funding for the $4.1 million project was shared by the City, Federal Arm!
Gorp:; of Engineers, and the State of California Department of Boating an( 1 Waterways.
Freewav Interchanges - Expansion of Interstate 5 freeway interchanges art
providing improved circulation at critical connection points to City streets. The
Palornar Airport Road/l-5 interchange, built in cooperation with the state
transportation agency (CALTfWNS), was completed in 1993. The Poinsetti:
Avenue interchange began construction during 1994-95 and was completed in earl)
1996 La Costa Avenue is the third freeway interchange scheduled for
improvement. This interchange began construction in mid-I 996 and is scheduled
for completion in late 1997. Design of the Cannon Road freeway interchange
began in 1997 so that construction could coincide with anticipated traffic demands
at Carlsbad Ranch.
Batiquitos Lanoon - Restoration to the wetlands at Batiquitos Lagoon began in
1994-95 and is now essentially complete. The three year wetland restoration
project included dredging the lagoon to restore fish and wildlife habitat, constructing
a channel and offshore jetties to restore full tidal flushing, and providing nesting
areas for various species of birds. The $30 million project was completely funded
by the Port of Los Angeles as mitigation for its recent expansion. 1
17
Street Improvements - Improvements to streets, highways, sidewalks, and trz
signals continues in the City of Carlsbad. Significant progress continues on
traffic circulation projects in response to and in anticipation of current and fut
development within the City. The Olivenhain Road Widening project is curre
under construction, and other major circulation projects under construction inch
Cannon Road West, and Poinsettia Lane-Aviara Parkway.
Poinsettia Park - Phase I was completed in 1997 and consists of three ligh
tennis courts, a children’s play area, a picnic area, a trail system, parki
restroomknack bar and, partial completion of a multi-purpose baseball/softball fi
and lighted soccer field.
* South Carlsbad Library - Construction of the new
South Carlsbad Library was initially delayed due to
the recession and is now scheduled to begin
construction in 1997-98, with the opening in
SpringSummer of 1999. Because of this delay in
construction, the library went through a redesign in
1996-97 to more accurately reflect the changes in
technology, building code and construction cost
estimates. Funding for the library is currently
available utilizing Community Facilities District No. 1
revenues.
Coastal Rail Trail - The City continued their study
and design work on Carlsbad’s portion of the Coastal Rail Trail, a multi-i
bicycle/pedestrian path between the Oceanside Transit Station and the Santa
Depot in San Diego. This project is funded by several state and federal grants
well as TransNet-Bicycle revenues to encourage the use of alternative forms
transportation in an effort to reduce traffic congestion and pollution.
Leo Carrillo Park - The master plan of Leo Carrillo Park is underway and
expected to be completed in 1997-98, with initial park development slated for 19!
98. Park development will consist of rehabilitation to existing structurl
landscaping, parking lots, rest rooms, walkways, large group picnic facilities and t
lots. Public Facilities Fees will fund this historic park development.
Enterprise Operations
The City of Carlsbad manages water, sewer, solid waste, and a planned golf course
Enterprise Fund operations. An Enterprise Fund is one where most or all of the costs involv
are supported by user fees. Within these funds the City uses many of the accounting practic
applicable to commercial business including the recording of depreciation on fixed assets a
the allocation of overhead costs from support services. User fees are set on an annual basis
cover both operating costs and debt service needs.
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Category
CMWD
Golf Course
Sewer
Solid Waste
TOTAL
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1996-97 over 9
1996-97 1995-96 (under) 199596 Chang
$18,912 $1 7,146 $1,766 10.39
79 42 37 88.1
6,774 6,358 416 6.5
1,279 120 1,159 965.8
$27,044 $23,666 $3,378 14.3%
Category
CMWD
Golf Course
Sewer
Solid Waste
TOTAL
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1996-97 over %
1996-97 1995-96 (under) 1995-96 Change
$15,431 $14,837 $594 4.0%
x53 314 (61) (1 9.4)
4,606 4,955 (349) (7.0)
1 34 159 (25) (I 5.7)
$20,424 $20,265 $159 0.8%
Category
Information Systems
Fleet Management
General Liability insurance
Workers' Compensation
Health Insurance
TOTAL
1996-97 over
1996-97 1995-96 (under) 1995-96 Chan
$1,238 $1,059 $1 79 16.5
2,694 2,425 269 11.1
1,085 1,056 29 2.1
2,004 1,744 260 14.s
71 8 893 (1 75) 19.E
$7,739 $7,177 $562 7.E
Category
Information Systems
Fleet Management
General Liability Insurance
Health Insurance
Workers' Compensation
TOTAL
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- 1996-97 over 5
1996-97 1995-96 (under) 1995-96 Chang
$1,173 $1,002 $171 17.19
2,211 1,901 31 0 16.3
875 1,327 (452) (34.1)
2,170 1,693 477 28.2
784 600 184 30.7
$7,213 $6,523 $690 10.69
Useful lives of vehicles have been extended over recent years as a cost savings measi
During the year, an analysis was done to compare the options of either buying or leasing C
owned vehicles. The study confirmed that the City's current practice of buying vehicles ver
leasing them, is financially more beneficial. Vehicle purchases totaled $1.2 million, no char
from the previous year. Fleet Management annual expenses during 1996-97 were $2.2 milli
and at year-end working capital was $3.9 million.
The City also operates a health insurance internal service fund for collecting premiums, pay
the insurance carrier, and holding reserve funds. At June 30, 1997, total health insurar
working capital totaled $1 33,000, a decrease of $1.2 million from 1995-96. During 1996-97,
million dollars was credited back to participating departments for overcharges in previous yea
The City's Information Systems Internal Service Fund collects revenues and expenses rela
to the providing of information system services to the City. At year-end, working capital tota
$704,000.
Agency Funds
The City uses Agency Funds to account for assets held by the City for other individuals, entit
or governments. Typically these funds relate to contractors' cash performance bonl
assessment district reserved funds, or employee deferred compensation accounts.
The City held a total of $15.9 million in Agency Funds as of June 30, 1997, compared to $2
million at the end of 1995-96. The decrease is due to the formal establishment of a trust for 1
ICMA deferred compensation plan in accordance with Internal Revenue Code Section 457(
Under the new regulations, since the plan administrator is the ICMA, the trust account
removed from the books of the City. This in essence ensures that the assets of the plan belo
to the employees, not to the City. Therefore, the plans' assets are not subject to claims of 1
general creditors of the City.
Cash Management
The City Treasurer is charged with the design of an effective cash management and investmt
program consistent with the California Government Code, the Carlsbad Municipal Code, a
the Carlsbad Investment Policy'. Among other activities, this includes arranging for banki
services; forecasting all cash receipts and expenditures; investing all inactive cash; a
reporting all investment activities.
Investments are made either as pooled investments or as investments held separately.
Pooled investments are made and managed internally by the City Treasurer, and include t
inactive cash of agencies controlled by the City and the various funds of those agencies. Ca
I As required by the California code, City Council annually adopts a comprehensive investment pol
specifying, among other things, investment objectives and strategy; type and term of investmer reporting requirements; and investment oversight.
22
Treasurer's Pooled Investments
Cash and Deposits
Federal Agency Obligations
Corporate Notes
Commercial Paper
Investment Pool (LAIF)
SUBTOTAL
Investments Hela' Separately
Federal Agency Obligations
Mutual Funds
Guaranteed I nvest m e nt Contracts
SUBTOTAL
TOTAL
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Treasury Notes
Cash and Deposits
Investment Pool (LAIF)
Amount invested
Interest Rates (Million $)
3.35 - 6.00 $ 3.8
3.48 - 7.04 70.8
5.00 - 6.93 35.4
5.17 - 7.15 56.1
5.84 - 5.93 9.8
5.58 - 5.64 21.5
$197.4
0.00 - 3.30 $ .4
4.40 - 7.17 6.0 - 1.5
8.57 - 9.12 2.3
5.58 - 5.64 2.2
$ 12.4
$209.8
In 1991-92 state law allowed the recalculation of the City's limit with new inflation factors. Us
population growth in San Diego County and growth in State per capita income allowed
Gann limit for 1996-97 to increase to $1 14.6 million. Appropriations of "proceeds of taxes" u
only $30.2 million, thus allowing the City a healthy margin of $84.4 million.
CITY OF CARLSBAD
PROPOSITION 4 SPENDING LIMIT VERSUS
APPROPRIATION OF PROCEEDS OF TAXES
(IN MILLIONS)
120
100
80
_--~
60
40
20
0
1991 1992 1993 1994 1995 1996 1997
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Economic Outlook
Carlsbad’s reveriues have shown signs of economic recovery since 1994-95, with the mo:
noticeable increase in revenues related to the building industry. The return of a strong€
economy coupled with a pent-up demand for new homes and businesses has resulted i
increased development activity. It is expected that development will continue to grow at
strong pace through 1997-98, although at a level below that of 1996-97.
Demand for North San Diego County industrial, office and research and development space i
at its highest level in more than six years. Speculative building in the late 1980’s and earl
?99O’s created an over supply of space that drove vacancy rates in excess of 20 percen
Companies moving to Carlsbad and the North County did so because office lease space wa
10 t0 20 percent lower than other more extensively developed metropolitan areas. As a resu
of high supply and low rental rates, development of new office and business parks virtualll I stopped until 1995.
Today, North County’s real estate market is in the midst of a major reversal and North Sat
Diego County is quickly approaching a severe shortage of land for further industrial and office
development. Although San Diego County has faced shortages of industrially zoned land in thc
past, there had always been industrial parks and commercial business center projects ir
process. Today’!; shortages of land come at a time when demand appears to be at its highes
level in many yeairs.
Commercial and industrial real estate development demand is driven by the needs o
companies to house their employees and products. New capital and profits finance corporatc
growth, and currently, there are hundreds of millions of dollars being invested in North Count)
companies via venture capitalists, public offerings and private financings. These investment:
create jobs and products, which increase demand for commercial space.
Carlsbad continues to be a strong magnet for specific industrie:
including tourism, golf, communications and biotechnology. A:
many of Carlsbad’s biotech and communications companies begir
to bring new products to market, we should see a new surge ir
growtli. The effect of new demand and diminishing supply 01
industrial and commercially zoned property will result in higher land
d
!
values and rental rates in Carlsbad, and throughout the County.
Contributing to the much-needed tax base to finance the City’s growing service
needs is the current and planned development in the Carlsbad Ranch project. The
Gemological Institute of America moved its headquarters to Carlsbad Ranch during 1996,
including its first phase laboratory and research center. The Institute will rank Carlsbad among
the leading centers for the international jewelry trade, along with New York, Tokyo and London.
A gemological library, museum and auditorium are scheduled and the campus will house 600
employees and 400 students. The second project completed was the National Association of
Music Merchants headquarters. The organization serves as a trade group for the nation’s
music retailers arid manufacturers. Other Carlsbad Ranch future projects include LEGOLAND 1
25
California family theme park, the Pan Pacific Resort, a community hotel, the Carlsbad Munici
Golf Course, a research and development business park, microwinery, and the Carlst
Company Stores, a retail outlet mall.
The City’s Growth Management Program holds the key to the timing of many of the develc
ments. The program was established by a vote of the citizens in 1986 and is designed
ensure that new development occurs in conjunction with careful planning of infrastructure 2
service needs. Under the Growth Management Program, development occurs only wh
infrastructure improvements required to serve the development are financed and construcl
as a part of the development. Capital projects are phased to closely match incremental grov
demands. Standards have been established in eleven areas including circulation, C
administration, schools, libraries, fire protection, parks, drainage, water, sewers, and op
space.
As a result of the Growth Management Program, fee programs are in place in ensure that fur
are available to pay for public facilities as they are needed. An outgrowth of the Groi
Management Program is the long range Capital Improvement Program (CIP) which covers i
current year through buildout of the City. The CIP anticipates future residential growth
almost 1,000 units per year and annual commerciaVindustria1 development between 500,C
and one million square feet per year. With this level of growth, Carlsbad expects to constrl
more than $25 million in improvements every year including new parks, libraries, streets, tra
signals, water and sewer lines, and other facilities. This aggressive construction program \
place a burden on the operating budget which must be managed through careful scheduling
match demands with resources. Uncontrolled demand could easily outpace the City’s ability
pay for services.
One of Carlsbad’s major industries, and a
considerable source of income to the City’s
General Fund, is tourism. The City recognizes
the importance of its tourist industry through
its financial support to the Convention and
Visitors Bureau and the annual appropriation
of funds to keep the state beach parking free
to all beach users. A major boost to the
tourism industry is expected in the upcoming
year with the opening of the Four Seasons
Resort at Aviara, a five-star resort hotel and timeshare. This resort was begun in the I;
1980’s and then stalled by the recession and other factors for almost seven years. Constructi
was started back up in 1995-96 with the hotel opening in July 1997. It is anticipated that t
resort will significantly boost the City’s transient occupancy tax and sales tax collections
future years.
26
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Acknowledgments
This report has been a joint effort by many people from many different areas of responsibilitj
The dedicated efforts of Kevin Branca, Senior Accountant, and all of the accounting staf
deserve full credit for the preparation and contents of this report. We appreciate Michelll
Kepner of Conrad & Associates for the professional way in which the audit of this financiz
report was conducted. It has been a pleasure to work with the Conrad & Associates staf
throughout this period.
Respectfully submitted,
1 p-- 7-4-
L SA HILDABRAND 8 Finance Director
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PENDLETON
ESCONDIDO
RAMONA
SOLANA BEA
IMPERIAL BEACH
29 1
CITY OF CARLSBAD
ELECTED CITY OFFICIALS
Claude A. Lewis, Mayor
Ramona Finnila, Mayor Pro Tem
Julianne Nygaard, Council Member
Ann J. Kulchin, Council Member
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
Dennis Van Der Maaten, Fire Chief
Robert Vales, Police Chief
Ron Ball, City Attorney
David Bradstreet, Community Services Director
Ruth Fletcher, Purchasing Officer
Robert J. Greaney, Water Department General Manager
Lisa Hildabrand, Finance Director
Michael Holzmiller, Planning Director
Lloyd Hubbs, City Engineer
Ann Cheverton, Human Resources Director
Clifford Lange, Library Director
Evan Becker, Housing & Redevelopment Director
CHAIRPERSONS, COMMISSIONS AND BOARDS
Arthur Wood Arts Commission
Mike Howes Beach Erosion Committee
Tracy Carmichael Community Television Foundation
Kim Welshons Design Review Board
Gordon Bizieff Historic Preservation Commission
Mike Schlehuber Housing Commission
Claude A. Lewis
Ann L’Heureux
Julie Baker
James Page Personnel Board
Robert Nielsen Planning Commission
James Whittaker Senior Commission
Emmett J. Woodward, Jr. Bill Dominguez Sister City Committee
Thomas Blake Traffic Safety Commission
Richard Allen
Fred W. Maerkle Water Commission
Housing and Redevelopment Commission
Library Board of Trustees
Parks and Recreation Commission
Serra Cooperative Library System Advisory B
Underground Utility Advisory Committee
30
---- --------- -------__
I,---,,-,,,- L-J,,.L,-----,,,,,,_----- R-J____________. -I_ ______________ -- I L,,----.----------------------------- I 31
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CERTIFIED PUBLIC ACCOUNTA
11 00 MAIN STREET, SL
IRVINE, CALIFORNIA 5
(71 4) 474
CONRW ' m:fiTEs, A PART N E R S H I P INCLUDING PROF E55 I 0 N A L COR PO RAT IONS L.L.p.
The Honorable Members of City Council City of Carlsbad. California E INDEPENDENT AUDITORS' REPORT
We have audited the accompanying general purpose financial statements of the City of Carlsbac
California as of and for the year ended June 30, 1997, as listed in the table of contents. Thes
general purpose financial statements are the responsibility of the management of the City c
Garlsbad, California. Our responsibility is to express an opinion on these general purpos financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards an Government Auditing Standards, issued by the Comptroller General of the United States; and th provisions of Ofiice of Management and Budget (OMB) Circular A-133 entitled Audits of State. Local Governments and Nun-Profit Organizations. Those standards and OMB Circular A- 13 require that we plan and perform the audit to obtain reasonable assurance about whether th general purpose financial statements are free of material misstatement. An audit include examining, on a test basis, evidence supporting the amounts and disclosures in the gener: purpose financial statements. An audit also includes assessing the accounting principles use and significant estimates made by management, as well as evaluating the overall financi: statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in a material respects, the financial position of the City of Carlsbad, California as of June 30, 199; and the results of its operations and the cash flows of its proprietary fund types for the year the ended in conforniity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financis
statements taken as a whole. The combining, individual funds, and individual account grou financial statements and schedules listed in the table of contents are presented for purposes c
additional analysis and are not a required part of the general purpose financial statements of th
City of Carlsbad, California. Such information has been subjected to the auditing procedure
applied in the audit of the general purpose financial statements and, in our opinion, is fair1
stated in all material respects in relation to the general purpose financial statements taken as
whole. The scope of our audit did not include the supplemental statistical schedules listed in th
table of contents and we do not express an opinion on them.
In accordance with Government Auditing Standards issued by the Comptroller General of th
United States, we have also issued a report dated October 3, 1997 on our consideration of th City's internal control structure and a report dated October 3, 1997 on its compliance with law
and regulations.
I
&&j&+-+ruei?h, LAP
October 3, 1997
33
MEMBERS OF AICPA AND CALIFORNIA SOCIElY OF CERTIFIED PUBclC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
CITY OF CARLSBAD
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 1997
Governmental Fund Types
Special Debt Capit General Revenue Service Proie Assets and Other Debits
Assets: Cash and investments (note 4) $22,692,125 15,144,152 4,342,813 80,77!
Deferred compensation investments (notes 4 and 23) Receivables: Loans 2,3 08,444 Taxes 1,785,654 22,533 35,415 1: Accounts, net 100,543 23,540 32 1 Special assessments 5,160,000 Other 337,545 Accrued interest 30,210 3: Due from other funds (note 5) 693,565 Due from other governments 179,054 183,155 7f Advances to other funds (note 6) 14,157,856 1,70( Inventory 24,129 Prepaid expenditures 426 197,623 Restricted assets: Cash and investments (note 4) Accrued interest Fixed assets, net (note 7 and 8)
Amount available in debt service funds Amount to be provided for retirement of general long-term debt
Other debits:
Total assets and other debits $39,970,897 17,879,447 9,568,438 82,926
Liabilities, Equity and Other Credits
Liabilities: Accrued liabilities .$ 3,224,979 308,056 1,186 Accrued interest payable
Advances from other funds (notes 6 and 11) 4,250 Due to other governments 2,887 6,141
Estimated claims payable 168 Due to bondholders
Current portion of long-term debt (note 11) Deposits payable 1,450 Deferred compensation payable (note 23) Current liabilities payable from restricted assets -
Deferred revenue 5,746,076 14,142 5,160,000 368 Long-term debt payable (notes 9, 10, 11 and 27)
Due to other funds (note 5) 602,872 16,000 74
accrued interest payable
Total liabilities 8,975,392 93 1,211 5,176.000 6,047
Equity and Other Credits: Investment in general fixed assets Contributed capital (note 16) Fund balances: Reserved (note 14) 9,824,742 5,430,889 1,894,633 4,78 1 Unreserved (note 14) 2 1,170,763 1 13 17,347 2,497,805 72,097
Reserved (note 14) Unreserved (note 14)
Retained earnings:
Total equity and other credits 30,995,505 16,948,236 4,392,438 76,878
Total liabilities, equity and other credits $39,970,897 17,879,447 9,568,438 82,926
See accompanying notes to general purpose financial statements.
34
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Proprietary Fund Types Fiduciary Fund Type Account Groups General General
Internal Fixed Long-Term Totals Enterprise Service Agency Assets Debt [Memorandum
58,855,320 9,68 1,705 12,798,287 204,293,75 3,036,335 3,036,33
2,308,44 1,907,03 3,173,050 7,427 3,625,73 5,160,OO 337,54 24,9 16 88,42
126,753 820,3 1 667,63 230,735
15,857,85 131,626 87,470 243,22 198,04
2,655,419 2,655,41 29,776 29,77 112,043,783 4,677,925 69,806,824 186,528,53
4,392,438 4,392,43
- 34,352,987 34,352,98
4 1,533 3,966 a
177,287,995 14,454,527 - - 1 5.863,5 04 69,806,824 38,745,425 466,503,502
2,693,130 193,700 7,606,55' 1,094,978 1,094,971 126,753 820,3 1: 1,765,200 9,842,656 15,857,85( 1,415 10,44. 1,312,711 1,512,71 4,664,264 4,664,261 1,670,684 1,670,682 989,228 '7,067,927 8,058,60. 3,036,335 3,036,3 3.
380,559 380,55' 2,070,778 13,359,19( 20,732,029 - 28,902,769 49,634,791
30,46 1,776 1,506,411 - 15,863,504 38,745,425 107,707,30(
32,000
69,806,824 69,806,82( 103,965,63
2 1,93 1,63' 107,283,40
2,47 1,695 2,47 1,69 47,689,539 5.647,467 - 53,337,00(
146,826,219 12,948,116 - 69,806,824 358,796.19 1 177,287,995 14,454,527 - - 15,863,504 69,806,824 38,745,425 466,503,50
96,664,985 7,300,649
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CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 1997
Special Debt Capital Tok -- General Revenue Service Proiects (Memoranc
$29,387,3 13 1,522,368 1,755,899 8,846,399 41,51 4,231 1 Taxes
Intergovernmental 567,775 4,030,395 7,166,590 1 1,761 1 Charges for services 7,897,402 2,693,23 0 1 17,02 1 10,70' Fines and forfeits 3 17,892 31' 1 Interdepartmental services 2,042,503 2,04: Contributions from property owners 15,450,861 15,45(
Revenues:
Licenses and permits 4,234,652 - -
State subventions 2,885,540 - - 2,88:
Interest income 1 , 157,9 12 716,930 302,231 3,898,115 6,07:
- Donations 24,440 195,3 04 21' Miscellaneous 1,486,767 1,657,117 273,098 17,3 76 3,431
Total revenues 50,002,m 10,815,344 2.33 1,228 35,496,362 98,64:
Expenditures:
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Current: General government 5,617,116 18,808 1,325,545 6,96 Public safety 16,891,734 5 18,299 17,41( Community development 7,595,529 - 7,591 Housing and welfare 3,694,803 - - 3,691 Library and the arts 2,822,588 542,590 - - 3,361 Community services 7,636,225 2,346,580 - 9,98: - 13,55( I capital outlay 13,556,164
Principal retirement 992,240 99: Interest and fiscal charges - 2,384,811 2,3 8~
Total expenditures 40,563,192 7,102,272 3,395,859 14,881,709 65,94:
Excess (deficiency) of revenues
over (under) expenditures 9,439,004 3,713,072 (1,064,63 1) 20,614,653 32,701
Debt service: - - -
Other financing sources (uses): Operating transfers in 27,986 23,502 797,500 2,681,086 3,53( Operating transfers out (2,708,028) (16,737) (430,000) (369,989) (3,52~
Total other financing sources (uses) (2,680,042) 6,765 905,977 2,3 1 1,097 5 4:
Excess (deficiency) of revenues and other financing sources over (under) expenditures and other
financing uses 6,758,962 3,719,837 (158,654) 22,925,750 33,24: I Fund balances at beginning of year,
Residual equity transfers in 793,22 1 44,85 1 3,411 84
Fund balances at end of year $30,995,505 16,948,236 4,392,438 76,878,860 129,2 1
as restated (note 3) 23,913,322 13,185,035 4,551,092 53,949,699 9539'
I See accompanying notes to general purpose financial statements.
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CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Governmental Fund Types
Year Ended June 30, 1997
General Fund Special Revenue Funds Actual on Variance- Actual on Varia
Budgetary Over Budgetary ov
Budget Basis (Under) Budget Basis (Und
Taxes $28,585,000 29,387,3 13 802,3 13 1,525,000 1,522,368 (276
Revenues:
Licenses and permits 3,732,000 4,234,652 502,652 Intergovernmental 567,775 567,775 4,35 1,683 4,030,395 (321,; State subventions 2,750,000 2,885,540 135,540
Charges for services 6,486,000 7,897,402 1,411,402 2,068,400 2,693,230 624,E Fines and forfeits 330,000 3 17,892 (12,l OS)
Interest income 1,400,000 1,157,9 12 (242,088) 448,500 7 16,930 268,4 Interdepartmental services 1,750,000 2,042,503 292,503
Miscellaneous 1,197,000 1.486,767 289,767 301,200 1,657,117 1,355,9
Total revenues 46,240,000 50,002,196 3.762,196 8,932,943 10,815,344 1,882,4
Donations 10,000 24,440 14,440 238,160 195,304 (423
Expenditures: Current: General government 6,355,044 6,143,407 (21 1,637) Public safety 17,103,775 17,055,529 (48,246) 1,028,547 900,174 (128,3 Community development 8,389,717 8,224,008 (165,709)
Housing and welfare 4,928,446 3,86 1,113 (1,067,3 Library and the arts 2,921,022 2,885,853 (35,169) 800,142 662,363 (137,7 Community services 7,882,513 7,871,560 (10,953) 2,879,129 2,560,845 (3 18,2
Principal retirement Interest and fiscal charges
Debt service:
Total expenditures 42,652,07 1 42,180.357 (47 1,7 14) 9,636,264 7,984,495 (1,65 1,7
Excess (deficiency) of revenues over (under) expenditures 3,587,929 7,821.839 4,233,910 (703.32 1) 2,830,849 3,534,l
Other financing sources (uses): Operating transfers in 100,000 27,986 (72,014) 23,502 23,502 Operating transfers out (2,708,028) (2,708,028) (1 6,737) (1 6,737) Proceeds of advances
Total other financing
Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 979,901 5,141,797 4,161,896 (696,556) 2,837,614 3,534,1
sources (uses) (2,608,028) (2,680,042) (72,014) 6,765 6,765 -
Fund balances at beginning of year, as restated (note 3) 23,9 13,322 23,913,322 13,185,035 13,185,035
Residual equity transfers in 793,22 1 793,22 1 44,85 1 44,s Residual equity transfers out (4 7 0,O 0 0) (470,000) (1,487) (1.4
Fund balances at end of year $24,423,223 29.378,340 4.955,117 12,488,479 16,066,013 3,5773
See accompanying notes to general purpose financial statements.
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Actual on Variance- Actual on Variance- Budgetary Over Budgetary Over Budget @c& [Under) Budget &&s (Under)
1,200,000 1,142,537 (57,463) 3 1,3 10,000 32,052,2 18 742,2 18 3,732,000 4,234,652 502,652 4,598,170 246,487 4,351,683
2,885,540 135,540 2,750,000 8,554,400 10,590,632 2,036,232
50,000 82,887 3 2, 8 87 1,898,500 1,957,729 59,229 1,750,000 2,042,503 292,503
1,528,000 3,144,989 1.6 16,989 I 1,279,800 1,226,529 (53,2'71) 56,452,743 62,044,069 5,591,326
Totals (Memorandum Only)
330,000 3 17,892 ( 1 2,l OS)
248,160 2 19,744 (28,416) 29,800 1,105 (28,695)
26,000 15,608 (1 0,302) 6,381,044 6,159,015 (222,029) 18,132,322 17,955,703 (1 76,6 19) 8,389,717 8,224,008 (1 65,709) 4,928,446 3,861,113 (1,067,333) 3,72 1,164 3,548,216 (172,948)
10,76 1,642 10,432,405 (329,237)
1,354,737 1,343,652 (1 1,085) 1,354,737 1,343,652 (1 1,085)
1,642,977 1.63 1,500 (1 1.477) 53,93 1,3 12 5 1,796,352 (2,134,960)
262,240 272,240 10,000 262,240 272,240 10,000
(41,794) 2,52 1,43 1 10,247,7 17 7,726,286 (363,177) (404,97 1)
123,502 51,488 (72,O 14) (430,000) (430,000) (3,154,765) (3,154,765) 538,477 538.477 -- 538,477 538,477
108,477 108,477 -- (2,492,786) (2,564,800) (72,O 14)
(254,700) (296,494) (4 1,704) 28,645 7,682,9 17 7,654,272
1,630,405 1,630,405 38,728,762 38,728,762
838,072 838,072
1,375,705 1,333,911 38,287,407 46,778,264 8,490,857
-- (470,000) (47 1,487) (1,487)
(4 1,704) --
39
CITY OF CARLSBAD
Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types
Year Ended June 30,1997
Internal Tota. Enterprise Service (Memorand
Operating revenues: Water sales $15,159,062 - 15,159 Sewer services charges 5,086,863 - 5,086
Contributions from other government agencies 742,975 - 742.
Other charges for services 933,727 6,677,120 7,6 10.
Miscellaneous 1,098,482 408,422 1,506.
Total operating revenues 23,021,109 7,085,542 30,106.
Operating expenses: Plant operations 1,5 19,334 - 1,519: Purchased water 8,95 1,926 - 8,95 1 : Depreciation 2,317,884 1,127,463 3,445: Fuel and supplies - 342,068 342,
Claims expense - 3,695,586 3,695,
General and administrative 6,182,285 2,015,973 8,198,
Total operating expenses 18,971,429 7,18 1,090 26,152,
Operating income (loss) 4,049,680 (95,548) 3,954,
Interest expense and fees (1,4 17,780) - (1,417, Gain (loss) on sale of property (7,908) 85,626 77, Gain (loss) on disposal of assets - (3 1,765) (317
Property taxes 755,391 - 755,
Amortization of issuance costs (26,7 10) - (26,
Nonoperating revenues (expenses): Interest income 3,136,274 567,327 3,703,
Miscellaneous income (expense) 131,339 131,
Total nonoperating revenues (expenses) 2,570,606 62 1,188 3,191,
Income (loss) before operating transfers 6620,286 525,640 7.145,
Operating transfer in - 4,680 4, Operating transfers out ~10,000) (10. -
Net income (loss) 6,620,286 520,320 7,140,
Retained earnings at beginning of year 43,540,948 6,127,147 49,668,
Residual equity transfers out (1,000,000) (1,000, -
Retained earnings at end of year $50,161,234 5,647,467 55,808,
See accompanying notes to general purpose financial statements.
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CITY OF CARLSBAD
Combined Statement of Cash Flows - All Proprietary Fund Types
Year Ended June 30, 1997
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Internal Total Enterprise Service (Memorandu
Operating income (loss) $ 4,049,680 (9 5 , 548) 3,954,l Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Depreciation 2,3 17,884 1,127,463 3,445,: (Increase) decrease in receivables 70,863 (3,953) 66,s (Increase) decrease in due from other governments (1 82,907) - (1 82,s
(Increase) decrease in prepaid expenses - 22,854 22,E
(Increase) decrease in inventory 90,406 1,166 91,: Increase (decrease) in accrued liabilities 372,277 (67,124) 305,l
(1J - 329,C Increase (decrease) in due to other govenments
Increase (decrease) in deposits payable
Increase (decrease) in estimated claims payable (76,200) (408,532) (484,; Increase (decrease) in loan payable (95,925) (95,9
Cash flows from operating activities:
- (1,155) 329,096
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Net cash provided by (used for) operating activities 6,874.019 576,326 7,450,3
Cash received fiom other funds 638,125 33,346 671,4 Cash paid to other funds (1 1,083) (1,010,000) (1,021,O
financing activities 627,042 (976,654) i349,6
Cash flows from noncapital financing activities:
Net cash provided by (used for) noncapital
Cash flows from capital and related financing activities: Purchases of fixed assets (3,193,486) (1,280,240) (4,473,7 Reduction of priincipal (2,40 1,7 16) - (2,40 1,7 Interest and other fees paid (1,556,255) - (1,556,2 Debt service assessments 755,39 1 - 755,3 Capital contributions received 4,827,7 10 - 4,827,7
Proceeds of advances 1,765,200 - 1,765,2
Capital assessments paid (21 1,199) (21 1,l -
Net cash provided by (used for) capital
and related financing activities (1 4,3 55) (1,280,240) (1.294,5'
Cash flows from investing activities: Investment in restricted assets 3,106,461 - 3,106,4t
Interest on investments 3,756,3 73 722,897 4,479,2'
investing activities 6,862,834 722,897 7,585,7:
cash equivalents 14,349,540 (957,671) 13,391,8(
Cash and cash equivalents at beginning of year 46,207,493 10,639,376 56,846,8(
Cash and cash equivalents at end of year $60,557,033 9,681.705 70,238,7:
Supplemental schedule of noncash investing and financing activities: Capital assets contributed by (to) other furids $ 1,511,817 121,124 1,632,91
See accompanying notes to general purpose financial statements.
Net cash provided by (used for)
Net increase (decrease) in cash and
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B CITY OF CARLSBAD
Notes to General ]Purpose Financial Statements
Year Ended June 30, 1997
1 (1) Summary of Significant Accountins: Policies
The City of Carlsbad, California (Carlsbad) was incorporated on July 16, 1952. Carlsba
operates under a Council-Manager form of government and provides the followin
services: general government, public safety, community development, housing an
welfare, library, and community services.
The accounting policies of Carlsbad and its component units conform to general11
accepted accounting principles as applicable to governmental units. The following is ( summary of the more significant policies:
(a) DscriDtion and Scope of the Reporting Entity
As required by generally accepted accounting principles, these financia statements present the City of Carlsbad (the City) and its component units, entitie for which the City is considered to be financially accountable. The City i considered to be financially accountable for an organization if the City appoints :
voting majority of that organization's governing body and the City is able tc impose its will on that organization or there is a potential for that organization tc provide specific financial benefits to or impose specific financial burdens on thc City. The City is also considered to be financially accountable for an organizatioi if that organization is fiscallly dependent upon the City (Le., it is unable to adop its budget, levy taxes, set rates or charges, or issue bonded debt without approva from the City). In certain cases, other organizations are included as componen units if the nature and significance of their relationship with the City are such tha thleir exclusion would cause the City's financial statements to be misleading o incomplete.
Based upon the above criteria, the component units of the City are the Housing Authority of the City of Carlsbad, the City of Carlsbad Public Tmprovemeni Corporation, the Carlsbad Redevelopment Agency and the Carlsbad Municipa, Water District (the District).
Since the City Council serves as the governing board for these component units all of the City's component units are considered to be blended component units B1 ended component units, allthough legally separate entities, are in substance, par
of the City's operations arid so data from these units are reported with thc interfund data of the primary government. Only the City of Carlsbad Public
Improvement Corporation and the Carlsbad Redevelopment Agency issuc
separate component unit financial statements. Upon their completion, thc
financial statements of these component units can be obtained at City Hall. As o October 1995, all the Parking Authority bonds were paid off, thus eliminating thc need for a Parking Authority. The Parking Authority was officially dissolved ir September 1996.
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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 grog
each of which is considered to be a separate accounting entity. The operations
each fund or account group are accounted for by providing a separate set of se
balancing accounts that comprise its assets, liabilities, fund balancehetain
earnings, revenues, and expenditures or expenses. The various funds and accoC
groups are summarized by type in the financial statements. Fund types a: account groups used by the City are as follows:
GOVERNMENTAL FUND TYPES:
Governmental funds are used to account for the City's expendable financ resources and related liabilities (except those accounted for in proprietary a similar trust funds). The measurement focus is based upon determination changes in financial position. The following are the City's governmental hi types:
General Fund
The general fund is the general operating fund of the City. It is used to accou for all financial resources except those required to be accounted for in anoth
fund.
Special Revenue Funds
Special revenue funds are used to account for revenues derived from specil sources (other than major capital projects) that are restricted by law administrative regulation to expenditures for specific purposes.
Debt Service Funds
Debt service funds are used to account for the accumulation of resources for, ai
payment of, general long-term debt principal, interest and related costs.
Capital Projects Funds
Capital projects funds are used to account for financial resources to be used f the acquisition or construction of major capital facilities other than those financ by proprietary funds.
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I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
I (1) Summw of Significant Accounting Policies, (Continued)
_. PROPRIETARY FUND TYPES:
The City applies all applicable GASB pronouncements in accounting an
reporting for its proprietary operations as well as the following pronouncement
issued on or before November 30, 1989, unless these pronouncements conflic;
wLth or contradict GASB pronouncements: Financial Accounting Standard, Board (FASB) Statements and Interpretations, Accounting Principles Boar( (APB) Opinions, and Accounting Research Bulletins (ARBS) of the Committei on Accounting Procedure. Proprietary funds include the following fund types:
- Enterprise Funds
Enterprise funds are used to account for operations (a) that are financed primarill
through user charges, or (b) where the governing body has decided tha
determination of net income is appropriate.
Internal Service Funds
Internal Service funds are used to account for goods or services provided by onc
department to other departments of the City on a cost-reimbursement basis.
- FIDUCIARY FUND TYPE:
Fiduciary funds are used to account for assets held by the City in a trustec
capacity or as an agent for individuals, private organizations, other governmenta
units, and/or other funds. The following is the City's fiduciary fund type:
&ency Funds
Agency funds are used to account for assets held by the City in an agencj
capacity for individuals and private businesses. They do not involve
mleasurement of results of operations.
- ACCOUNT GROUPS:
Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term debt. The following are the City's account groups:
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant - Accounting Policies. (Continued)
General Fixed Assets Account Group
This account group is used to account for all fixed assets of the City other th 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 of the CI except those accounted for in the proprietary funds and trust funds.
Measurement Focus and Basis for Accounting
Governmental fund types are accounted for on a "spending" measurement foci Accordingly, only current assets and current liabilities are included on thc balance sheets, and the reported fund balance provides an indication of availab
spendable resources. Operating statements for governmental fund types rep(
increases (revenues) and decreases (expenditures) in available, spendat.
resources.
The proprietary fund types are accounted for on an "income determination"
"cost of services" measurement focus. Accordingly, all assets and liabilities a included on the balance sheet, and the reported fund equity provides an indicatic of the historical net worth of the fund. Operating statements for proprietary fui types report increases (revenues) and decreases (expenses) in total historical r worth.
Fiduciary fund types are custodial in nature (assets equal liabilities) and do n involve measurement of results of operations. Fiduciary fund assets and liabiliti are accounted for on the modified accrual basis of accounting.
Governmental fund types use the modified accrual basis of accounting. Revenu are recognizable when susceptible to accrual, i.e., both measurable and availab
Available means collectible within the current period or soon enough thereafter
be used to pay liabilities of the current period. In applying the susceptible accrual concept to intergovernmental revenues, the legal and contrack requirements of the individual programs are used as guidance.
Revenues that are accrued include real property taxes, sales tax, transit occupancy taxes, franchise taxes, highway users tax, interest, and some state a federal grants.
(c)
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I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
I (1) Summary of Significant Accounting Policies, (Continued)
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, ant become delinquent after December 10 and April 10, respectively. Tax liens attacl annually as of 12:Ol a.m. on the first day of March in the fiscal year for which th taxes are levied. Under the provisions of NCGA Interpretation 3, property ta revenue is recognized in the fiscal year for which the taxes have been leviec prlovided it is collected within 60 days of the end of the fiscal year.
Effective January 1, 1997, real property taxes are levied on October 15 agains owners of record at January 1. Also, tax liens attach annually as of 12:O 1 a.m. or the first day of January in the fiscal year for which the taxes are levied.
Governmental expenditures are recorded when the related fund liability i: incurred. Principal and interest on general long-term debt are recorded as func liabilities when due or when amounts have been accumulated in the debt servict fund for payments to be made early in the following year.
Proprietary funds use the accrual basis of accounting, i.e., revenues are recognizec
in the period earned and expenses are recognized in the period incurred. 0
(d) &icumbrances
Encumbrance accounting, under which purchase orders, purchase order requests contracts and other commitments for the expenditure of monies are recorded ir order to reserve that portion of the applicable appropriation, is employed as ar extension of formal budgetary control in the governmental funds. Encumbrance: outstanding at year-end do not constitute expenditures or liabilities, but art reported as reservations of hmd balance.
(e) &ish and Investments
Cash includes amounts in demand and time deposits. Investments are stated at cost or amortized cost, exce,pt for deferred compensation assets which are shown at market value.
The City maintains a cash and investment pool that is available for use by all funds. Interest income earned as a result of pooling is accrued in the cash and investment pool and allocaled to the appropriate funds as part of the monthly
in1,erest allocation.
(0 bstricted Cash and Investments
Restricted cash and investments represent amounts that are restricted under the terms of debt agreements, including debt service reserves and balances associated with special assessments for the construction of enterprise fund assets.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(g) Inventories
Inventories consist of materials and supplies that are valued at cost and i
recorded as expenses or expenditures on a first-in, first-out basis when consumec
(h) Compensated Absences
Vacation pay is payable to employees at the time used or upon termination employment. For governmental funds, the cost of accumulated vacation expect1 to be paid in the next 12 months is recorded as a fund liability and amour expected to be paid after 12 months (if any) are recorded in the general long-ter debt account group. For compensated absences recorded at June 30, 1997, i balances are expected to be paid within the following 12 months. For proprieta
funds, the cost of vacation is recorded as a liability when earned.
(i) Risk Management
The City accounts for its general liability, health insurance, and worke compensation activities in internal service funds. The funds are responsible f collecting premiums from other City funds and departments and paying clair settlements and insurance premiums. Interfund premiums are based on t insured fund's claims experience. Incurred but not reported claims are accrued year-end if material.
6) Unbilled Services
Unbilled water revenue of the enterprise funds is recognized as earned when t
water is consumed.
(k) General Fixed Assets
General fixed assets are recorded as expenditures in the governmental fund typ
and capitalized at historical cost in the general fixed assets account group. In t'
case of gifts or contributions, such assets are recorded at fair market value at f
time received.
Fixed assets consisting of certain improvements other than buildings, includii
roads, bridges, curbs and gutters, streets and sidewalks, and drainage systen
have not been capitalized. Such assets normally are immovable and of value on
to the City. Therefore, the objective of stewardship for capital expenditures
satisfied without recording these assets.
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I CITY OF CARLSBAD
Notes to General ]Purpose Financial Statements
(Continued)
I (1) Summary of Significant Accounting Policies, (Continued)
(k) Bneral Fixed Assets, (Continued)
In the general fixed assets account group, construction in progress is transferred tc
buildings or improvements upon approval by the City Council, whicl
approximates the completion date.
NI:, depreciation has been provided on general fixed assets. I (1) Fixed Assets - Proprietary Fmun
Fixed assets used by proprietary funds are stated at cost or estimated historica cast. Contributed fixed assets are recorded at estimated fair market value at thl time received. Net interest costs are capitalized on projects during thc cclnstruction period.
Depreciation is charged to operations using the straight-line method based on tht estimated useful life of the related asset. The estimated useful life of the assek arle as follows: IE Years
Buildings and improvements 10- 50 10- 100 Transmission and distribution lines 40 - 70 Sewer, sewer lines and wells 50 Sewage treatment facility 50
Wells, reservoirs and dams
I Equipment 3- 20
(m) &ferred Revenue
The deferred revenue in the General Fund represents funds received for a future
program, funds received for a future development project and interest accrued, bui not available, on advances to the Carlsbad Redevelopment Agency.
The deferred revenue in the Special Revenue Funds represents unearned grmi
re venue.
The deferred revenue in the Debt Service Funds represents the special assessment?
receivable.
The deferred revenue in the Capital Projects Funds relates to funds received and
to be applied toward future construction, a long term receivable for development
fee revenue earned but not available and a prepaid lease payment.
The deferred revenue in the Enterprise Funds relates to in-kind prepayments for
sewer installation services to be rendered.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(n) Statement of Cash Flows - Proprietary Funds
For purposes of presentation in the statement of cash flows, cash and cz equivalents represent funds that can be withdrawn at any time without restricti or penalty such as demand deposits, money market mutual funds, and depos held by the State of California pooled money investment account. T Proprietary Funds consider all highly liquid investments with an original matur
of three months or less when purchased and all amounts invested in a cash a
investment pool to be cash equivalents. A reconciliation of cash and ca
equivalents to amounts reported on the combined financial statements follows:
Cash
Equivalents Investments Total
Pooled cash and investments held by the City $68,537,025 - 68,537,O
Money market mutual funds 1,701,713 - 1,70 1,7 Government agency obligations - 953,706 953,7
$70,238,738 953,706 71,192.4
(0) Advances to Other Funds
Interfund loan receivables are reported as advances and are offset equally by fund balance reserve which indicates that they do not constitute expendat available financial resources and therefore are not available for appropriation.
(p) Residual Equity Transfers
Residual equity transfers represent non-routine transfers of equity between fun( including amounts transferred to reflect the opening, closing, or reclassification
funds. Residual equity transfers may appear to be out of balance because t residual equity transfers into the proprietary funds are recorded as additions
contributed capital.
(9) Total Columns
Total columns on the combined statements are captioned "Memorandum Only" indicate that they are presented only to facilitate financial analysis. Data in the columns do not present financial position, results of operations, or cash flows conformity with generally accepted accounting principles. Such data is r comparable to a consolidation since interfund eliminations have not been made.
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1 CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(2) Budgetary Data
The City follows these procedures in establishing its budgetary data:
1. During May or June, the City Manager submits to the City Council a propose1
operating budget for the fiscal year commencing the following July 1. The budge includes proposed expenditures and estimated revenues on a departmental basis.
Public hearings are conducted at City Council meetings to obtain citizen! comments during June.
Prior to July 1, the budget is enacted legally through passage of an appropriatioi
resolution.
The City Manager is authorized to make transfers of appropriated amounts from on1
department to another within a hnd for up to $100,000 per transfer. The legal level o
budgetary control is at the fund level. Revisions that alter the total appropriations of ary
fund must be approved by the City Council with the exception of budget adjustment
which involve offsetting revenues and expenditures. The City Manager is authorized tc
increase or decrease an appropriation for a specific purpose where the appropriation i:
offset by unbudgeted revenue which is designated for said specific purpose. Quarterlj
budget reviews are conducted each year and any major changes to the adopted budget arc
approved by the City Council at that time. During the year, several supplementaq
appropriations were necessary.
Budgets for governmental type funds are adopted on the modified accrual basis, excep that encumbrances are treated as budgeted expenditures in the year purchases art
committed.
Expenditures may not exceed budgeted appropriations at the fund level. A1
appropriations lapse at fiscal year-end unless City Council takes action in the form of i
resolutiort to continue the appropriation into the following fiscal year.
For purposes of budgetary presentation, actual generally accepted accounting principle: (GAAP) expenditures have been adjusted to include encumbrances outstanding ana 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 Senrice Funds except for the following: College Boulevard and Hosp Grove COPS. 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 mean Ingful.
2,
3.
51
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(2) Budgetary Data, (Continued)
The following schedule is a reconciliation of the budgetary and GAAP fund balances:
Special Debt General Revenue Servict Fund Funds Funds
Fund balances-budgetary basis $29,378,340 16,066,013 1,333,9 Encumbrances outstanding at year-end 1,195,196 405,766 -
Fund balances designated for continuing appropriations 561,183 505,48 1 - Earned leave at year-end (1 39,2 14) (29,024) -
Fund balances - GAAP basis $30,995,505 16,948,236 4,392,4:
Fund balances of nonbudgeted funds - 3.05 8,5:
(3) Restatement of Beginning Fund Balances
The accompanying financial statements reflect adjustments which resulted in
restatement of beginning fund balances of the Special Revenue Funds. An adjustme was made to the opening fund balance of the Calavera Heights Mitigation Fund ill Donations and Bequests Fund to reclass their balances from an agency fund to a speci revenue fund.
The following schedule summarizes the effects of the prior period adjustments to tl beginning fund balances as of June 30,1997:
Special Revenue
Fund balances at beginning of year, as previously reported $12,885,890
Reclassification of agency funds 299,145
Fund balances at beginning of year, as restated $13,185,03 5
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Notes to General Purpose Financial Statements
(Continued)
(4) Cash and Investments
Each pariicipating fund's portion of the City's cash and investment pool is displayed 01 the combined balance sheet as "Cash and investments." This category also includes cas1
and investments that are held separately by several of the City's funds.
Authority for Deposits and Investments:
The City's investment policy and state statutes authorize the City to invest in obligation
of the U.S. Government, its agencies and instrumentalities, commercial paper rated A- by Standard and Poor's Corporation or P-1 by Moody's Commercial Paper record with
maximum maturity of 180 days or 15% of the portfolio, banker's acceptances with maximum maturity of 270 days or 25% of the portfolio, repurchase agreements with maximum maturity of one week, certificates of deposit with national and state licensed 01
chartered banks or federal or state savings and loan associations, medium-term corporatr
notes with a maximum five-year maturity rated in the top two rating categories and not tc exceed 30% of the portfolio, money market funds whose portfolios consist of one or morr of the foregoing investments, a sweep account, and the State Treasurer's investment pool.
State statutes require that all deposits be insured or collateralized. Depositories holding
public funds on deposit are required to maintain collateral in the form of a pool o government securities with a market value of at least 10 percent in excess of the City': deposit or 50 percent in excess of the deposit as collateral in mortgage pools.
Cash and investments are classified in the accompanying combined balance sheet a:
follows:
Cash and investments $204,293,75 1 Deferred compensation investments 3,036,335
Restricted assets: Cash and investments 2,655,419
$209,985,505
Cash and investments held by the City at June 30, 1997 consisted of the following:
Cash on hand (petty cash) $ 7,052 Demand deposits 4,240,008 State of California Pooled Money Investment Account 23,625,716 Deferred compensation mutual funds 3,036,335 Commercial paper 9,846,487 United States Treasury notes 35,392,137 United States Government agency obligations 72,26 1,164 Corporate notes 56,104,930 Mutual funds - other 3,135,571 Investment agreements 2,336,105
$209,985,505
53
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(4) Cash and Investments, (Continued)
Deposits:
The following summary presents the amount of the City's deposits which are ful
insured or collateralized with securities held by the City or its agent in the City's nar
(Category One), those deposits which are collateralized with securities held by t pledging financial institution's trust department or agent in the City's name (Catego Two), and those deposits which are not collateralized or are collateralized with securiti held by the pledging financial institution or its trust department or agent but not in ti City's name (Category Three) at June 30, 1997.
Category Bank Carryir
2 - 3 Balance Amour 1 Form of Deposit -
Demand deposits $106,533 6,863,360 ; 6,969,893 4,240.0(
Investments:
As defined in Governmental Accounting Standards Board Statement No. 3, investmen in securities are categorized in the following manner:
Category 1 - its agent in the City's name.
Category 2 - by the counterparty's trust department or agent in the City's name.
Category 3 -
by the counterparty or by its trust department or agent, but not in the City's name.
category Carrying Market Form of Investment - 1 - 2 - 3 Amount Value
United States
United States Government agency obligations (a) 70,818,923 1,442,241 - 72,26 1,164 7 1,750,Ol
172,162,477 1,442,24 1 : 173,604,718 172,953,2:
Investment in Local Agency Investment Fund (d) 23,625,716 23,726,8:
Investment in deferred compensation mutual funds 3,036,335 3,036,3:
Investment in mutual funds 3,135,571 3,1353
Investment agreements (e) 2,336,105 2,336,1(
$205,738,445 205,188,O'
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Investments that are insured or registered, which are held by the City
Uninsured and unregistered investments, for which the securities are he
Uninsured and unregistered investments, for which the securities are he
Commercial paper $ 9,846,487 - 9,846,487 9,85 1,81
Treasury notes 35,392,137 - - 35,3 92,137 3 5,462,8!
Corporate notes (b) (c) 56,104,930 - - 56,104.930 55,888.3'
Investments not subject to categorization:
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Notes to General Purpose Financial Statements
(Continued)
(4) Cash and Investments, (Continued)
(a) Includes a federal agency investment bearing an interest rate which varie indirectly with the steepness of the yield curve of the LIBOR index between thre
months and ten years.
Certain securities currently have a lower rating either because they wer purchased under a prior version of the City’s investment policy or had subsequent ratings change.
Certain investments currently exceed the maximum amounts authorized for ths type of investment because they were purchased under a prior version of th
As of June 30, 1997, the management of the State of California Pooled Mone: Investment Account (generally referred to as LAIF) has calculated the marke
value of LAIF to be $28,637,448,331. The City’s proportionate share of tha value is $23,726,834. Included in LAIF’s investment portfolio are certain marke sensitive investments including U.S. Treasury strips, federal agency floating rat1 notes, federal agency mortgage-backed securities, corporate floating rate notes and loans to certain state htds.
This is contract value. No secondary market exists for resale in order to establisl market value.
(b)
(c) I investment policy.
(d)
(e)
(5) Due To and From Other Funds
The following table shows amounts due from funds within the City to other funds withii the City at June 30, 1997:
Due From Due Tc
c
General $693,565 Special Revenue Funds:
-
Community Development Block Grant - (80,991 Section 8 Housing Authority - (50 1,48:
Hosp Grove COPS - (1 6,00(
Federal Grants - (74,69:
Carlsbad Municipal Water District - (126,751
Senior Nutrition (20,391 Debt Senrice Funds:
Capital Projects Funds:
Enterprise Funds:
Sewer 126,753 -
Totals $820,3 18 (820,3 1 I
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(6) Advances To and From Other Funds
The following table shows amounts advanced from funds within the City to other fur
within the City at June 30, 1997:
Advances From Advances To Amount
General Fund Capital Projects Funds: Park Development Fund $ 2,550,000
General Fund Enterprise Funds:
General Fund Account Group:
Golf Course Fund 1,765,200
Long-Term Debt Account Group 9,842,656
Capital Projects Funds: Capital Projects Funds: Capital Construction Fund Public Facilities Construction Fund 950,000 Traffic Impact Fund 750,000
1,700,000
Total advances $15,857,856
(7) General Fixed Assets
A summary of changes in the general fixed assets account group is as follows:
Balance at Balance at
July 1, 1996 Additions Deletions June 30, 195
Land $28,042,044 - - 2 8,042,04L
Buildings 27,426,136 257,573 - 27,683,705 Improvements 3,665,207 426,448 - 4,09 1,65: Furniture and equipment 3,981,005 665,295 (765,367) 3,880,931 Construction in progress 5,372.143 1.423,385 (687.045) 6,108,48f
Total $68,486,535 2,772,701 (1,452,4 12) 69,806,82L
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Notes to General Purpose Financial Statements
(Continued)
(7) General Fixed Assets, (Continued)
Construction in progress in the general fixed assets account group is composed of th
following :
Expended Project Balance at Authorization June 30, 1997 Committed
Library - South Carlsbad $1,576,365 1,460,163 1 16,202
Poinsetta Park 4,561,433 4,235,985 325,448 Hosp Grove Park Improvements 141,786 138,586 3,200 Public Art - Maxton Brown Park 24,877 5,000 19,877 Library Remodel - Cole Library 283,112 106,484 176,628 ADA Projects 227,179 66,609 160,570
Totals $6,984,75 1 6,108,483 876,268
Public Art - South Carlsbad Library 169,999 95,656 74,343
There is no future financing commitment required on any of the above noted constructioi
projects.
Fixed Assets - Proprietary Funds
A summary of proprietary fimd type fixed assets at June 30, 1997 is as follows:
(S)
Enterprise Internal Service
Land, water rights, rights-of-way $ 7,358,347 - Buildings and improvements 7,246,703 Wells, reservoirs and dams 19,3 16,600 - Transmission and distribution lines 38,043,7 18 - Sewer, sewer lines and wells 27,483,608 - Sewage treatment facility 32,451,601 Equipment and vehicles 1,571,211 8,786,195 Construction in progress 7,578,324
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141,050,112 8,786,195
Less accumulated depreciation (29,006,329) (4,108,270) a Fixed assets, net $1 12,043,783 4,677,925
57
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(8) Fixed Assets - Proprietary Funds, (Continued)
Enterprise Fund interest is charged to expense as incurred, except for interest related borrowings used for construction, which is capitalized net of interest earned construction funds borrowed. Interest capitalization ceases when the construction proj ( is substantially complete and placed in service. No interest costs were capitalized in t Enterprise Funds during the year ended June 30, 1997.
The Enterprise funds had various construction contracts in progress at June 30, 1997 w an estimated cost to complete of approximately $12,100,000. There is no futL financing required on any of these projects.
19) 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. The Community Developme building is secured for repayment of this capital lease. The final payment of principal a
interest totaling $1 17,264 (of which $4,445 represents interest) is to be paid in the fisc year 1998. Payments are funded from public facilities fees paid by development. T City's leasehold interest of $1,602,160 has been recorded in the City's general fixed as? account group.
Obligations Under Operating Leases
In June 1988, the Carlsbad Redevelopment Agency entered into an agreement to lease parking lot on State Street from a private party. The lease requires monthly ren payments for twenty years.
Minimum future rental payments under operating leases as of June 30, 1997 are:
{ 10)
1998 $ 55,402
1999 58,726 2000 62,250
200 1 65,985
2002 69,944
Subsequent to 2002 5 17s 54
Total minimum future rental payments $829,46 1
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Notes to General ]Purpose Financial Statements
(Continued)
(1 1 ) Long-Term Debt
The following is a summary of changes in the principal balance of long-term debt for th
year ended June 30, 1997:
Principal Principe
Balance at Balance July 1. 1996 Additions Reductions June 30, 1
General long-term debt account group: Bonds $15,255,000 - (250,000) 15,005,C
governmental commitment 6,570,000 - (390,000) 6,180,C Special assessment debt with
(330,000) 6,615,C Certificates of participation 6,945,000
HUD Section 108 Loan 1,099,950 (1 10,000) 989,s Advances to the Carlsbad
Redevelopment Agency 9,333,979 538,477 (29,800) 9,842,6 Obligations under capital leases 325,790 (212,971) 112,8
Total general long-term debt $39,529,719 538,477 (1,322,771) 38,745,4
-
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Enterprise funds:
Certificates of participation $9,040,000 - (880,000) 8,160,O
Loan payable 2,193,152 - (95,925) 2,097,2 Installment purchase agreement 1 1,8 16,666 1 1,080,000 (1 1,8 16,666) 1 1,080,O 0 Accrued assessments 2,585,789 - (21 1,199) 2,374,5
e
Total enterprise funds $25,635,607 1 1,080,000 (13,003,790) 23,711.8
59
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1 1) Long-Term Debt, (Continued)
Long-term debt at June 30, 1997 is comprised of the following issues:
Balance at June 30, 199' General LonpTerm Debt
1993 Carlsbad Housing and Redevelopment Commission Tax Allocation
Bonds, principal due in amounts ranging from $265,000 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.
1986 College Boulevard Assessment District Bonds, principal due in amounts ranging from $420,000 to $765,000 on September 2 of each year through 2006, interest payable on September 2 and March 2 at rates varying from 7.75% to 8.00% per annum. Payable from assessments placed on property within the district, with a required reserve amount of $765,620. 6,180,OO
1988 Hosp Grove Certificates of Participation, principal due in amounts ranging from $355,000 to $815,000 on August 1 of each year through 2008, interest payable on August 1 and February 1 at rates varying from 7.20% to 8.00% per annum. Payable fiom the General Fund, with a required reserve amount of $869,000.
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 $115,000 to $170,000 on August 1 of each year through 2003. Interest payable on
August 1 and February 1 at rates varying from 7.71% to 8.27% per annum.
Payable from future CDBG entitlements.
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. 9,842,65
Obligations under capital leases (note 9) 112,81
$3 8,745,42
$15,005,00
6,6 15,001
989,951
Total General Long-Term Debt
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Notes to General Purpose Financial Statements
(Continued)
[ 1 1 ) Long-Tei-m Debt, (Continued)
Balance at
June 30, 199;
Enterprise Fund Long-Term Debt:
1988 Carlsbad Municipal Water District Certificates of Participation,
principal due in varying amounts ranging from $940,000 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 6.9% to 7.3% per annum. The required reserve amount is $1,529,024.
Encina Financing Joint Powers Authority (EFJPA) Installment Purchase Agreement, principal due in varying amounts ranging from $405,000 to $905,000 on August 1 of each year through 2014, interest payable on February 1 and August 1 each year at rates varying fiom 4.0% to 5.5% per
annum. The required reserve amount is $942,67 1.
1993 Cwlsbad Municipal Water District loan agreement with the State Water Resources Control Board. Principal is due in varying amounts ranging from $98,707 to $123,219 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 land with accrued assessments. Principal is due in varying amounts ranging from $226,977 to $335,627 through 2006.
$ 8,160,001
1 1,080,001
2,097,22
2,3 74,591
Subtotal enterprise funds 23,711,81
Less unamortized discounts, issuance costs and deferred charges (1,309,lO~
Less current portion (1.670,68~
Total Enterprise Fund Long-Term Debt $20,732,02!
Debt service requirements to maturity for general long-term debt (excluding obligation,
under capital leases) are as follows:
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1 1 ) Long-Term Debt, (Continued)
Tax Assessment Certificates HUD
Allocation District of Section 108
Bonds Bonds Participation Loan Totals
1998 $ 1,047,659 895,135 860,985 191,198 2,994,9'
1999 1,048,352 896,115 859,880 191,589 2,995,9:
2000 1,043,390 898,8 18 861,030 186,26 1 2,989,4!
200 1 1,042,77 1 898,133 854,3 3 0 185,278 2,980,5
2002 1,046,234 898,800 854,000 183,408 2,982,41
2003-2007 5,220,03 1 4,480,800 4,262,400 357,63 1 14,320,8( 2008-20 12 5,207,638 - 1,692,800 - 6,900,4: 20 13-20 17 5,189,606 - - - 5,189,6(
20 1 8-2022 5,157,296 5,157,2! 2023-2024 2,054,675 - - 2 .O 5 46'
28,057,652 8,967,80 1 10,245,425 1,295,365 48,566,21
- - -
Less amounts
representing interest (13,052,652) (2,787,801) 13,630,425) (305,415) (19,776,21
Total general long-term debt $15,005,000 6,l 80,000 6,6 15,000 989,950 28.789,9t
Debt service requirements to maturity for the enterprise funds are as follows:
Carlsbad Municipal Encina Carlsbad Water District Installment Municipal Golf Course Certificates of Purchase Water District Accrued Participation Agreement Loan Payable Assessments Total
1998 $ 1,524,982 918,179 159,527 415,002 3,017,t
1999 1,525,122 942,67 1 159,527 416,310 3,043,t
2000 1,524,772 940,37 1 159,527 417,166 3,041,s
200 1 1,528,448 942,026 159,527 417,804 3,047,s
2002 1,525,288 942,16 1 159,527 417,811 3,044,;
2003-2007 3,054,774 4,682,374 797,635 1,238,286 9,773,C 2008-2012 - 4,669,569 797,635 - 5,467,; 2013-2016 - 2,788,079 28 5,426 - 3,073,:
10,683,386 16,825,430 2,678,331 3,322,379 33,509,:
Less amounts representing interest (2,523,386) (5,745,430) (58 1,104) (947,789) (9.797,;
Total enterprise fund debt $ 8,160,000 1 1,080,000 2,097,227 2.374590 23,711,1
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Notes to General Purpose Financial Statements
(Continued)
(12) Defeasance of Debt
In February 1997, the City issued Refunding Wastewater Revenue Bonds, 1997 Series 1
to refund $1 1,8 16,666 of outstanding Wastewater Revenue Bonds, 1989 Series A bond
with interest ranging from 6.350% to 6.875%. The net proceeds of $10,845,872 afte payment of $122,103 in underwriting fees and other issuance costs were used to purchas
U.S. government securities. Those securities were deposited in an irrevocable trust wit an escrow agent to provide for all future debt service payments on the 1989 Series t
Wastewater Revenue Bonds. As a result, the 1989 Wastewater Revenue Bonds ar considered to be defeased and the liability of those bonds has been removed from th balance sheet.
The refunding resulted in a difference between the reacquisition price and the net carryin amount of the old debt of $954,773. In addition, there was $140,651 in unamortizel
discount costs at June 30, 1997. These two amounts are reported in the accompanyiq financial statements as a deduction from installment purchase agreement payable, and ar
being charged to operations through the year 2014 on a straight line basis. The Cit
completed the advance refunding to reduce its total debt service payments over the nex
18 years by $2,919,640, and to obtain an economic gain of approximately $485,900.
As of June 30, 1997, the amount outstanding on prior year defeasances of debt (1988 Ta: Allocation Bonds) was $9,8 15,000.
Special Assessment Bonds With Government Commitment
The College Boulevard Assessment District Bonds were issued under the provisions o the Improvement Bond Act of 1915. The bonds were issued to finance the publil
infrastructure improvements project on College Boulevard. If a delinquency occurs in thi payment of the assessment installments, the City, at the end of the fiscal year o
delinquency, has a duty to transfer to the debt service fund the amount of the delinquenc:
out of available funds of the City. Available funds consist of any surplus funds of thl
City not required for lawful municipal obligations. This duty of the City is continuinj during the period of delinquency, until reinstatement, redemption or sale of thl
delinquent property. Even though neither the faith and credit nor the taxing power of thl
City is pledged for the payment of the bonds, the City is obligated in the manner statec
above. ,4ccordingly, these bonds have been recorded in the general long-term deb
account group of the City.
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Notes to General Purpose Financial Statements
(Continued)
<14) Fund BalancesRetained Earnings
The following is a summary of reserved and unreserved fund balances and retain1
earnings as of June 30, 1997:
Governmental Fund Types Special Debt Capit
Fund Balances General Revenue Service Proiec
Reserved for: Loans receivable $ - 2,308,444 - -
Debt service - 1,894,633 -
Advances to other funds 8,473,991 - - 1,700,C
Low and moderate income housing 2,519,055 - - Rent interruption insurance 13 1,000 - - - Encumbrances 1.1 95,196 405,767 - 3,08 1,:
9,824,742 5,430,889 1,894,633 4,7812
Inventory 24,129 - -
Prepaid expenditures 426 197,623 - -
Unreserved: Designated for future debt service - - 2,461,176 -
Designated for approved capital projects 46,000 122,643 - 18,537,5
Designated for continuing appropriations 56 1,183 292,886 - 26,C
Designated for arbitrage - - 36,629 -
Undesignated 19,752,847 11,101,818 - 53.5335
Designated for sales tax payment 307,784 - - -
Designated for affordable housing 502,949 - -
21,170,763 1 13 17,347 2.497305 72.097,4
Total fund balances $30,995,505 16,948,236 4,392,438 76,878.8
ProDrietary Fund Types Internal Retained Earnings Enterprise Service
Reserved for:
Unreserved 47,689,539 5,647,467
Total retained earnings $50,161,234 5,647,467
Reserves for loans receivable, inventory, prepaid expenditures and advances to 0th funds, net of accrued interest recorded as deferred revenue, are established to show th certain assets are already committed to other purposes and are not available f discretionary expenditures.
Reserves for debt service represent resources legally restricted to the payment of lon term debt principal and interest maturing in future years.
Debt service $ 2,471,695 -
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Notes to General Purpose Financial Statements 1 (Continued)
[ 14) Fund BalancedRetained Earnings, ilContinued)
Reserves for rent interruption insurance represents monies required to be set aside under bond indenture.
Reserves for encumbrances represent commitments related to unperformed contracts fc services and undelivered goods.
Unreserved-undesignated represents the fund balance or retained earnings remaining afte reduction for reserved and designated fund balances or retained earnings.
I [15) Accumulated Fund Deficits
The following fhnds reported deficits in fund balances or retained earnings as of June 3C
1997:
Deficit Balance Capital Project Funds:
Einterprise Funds:
i Federal Grants $ (266)
I Golf Course (1,133,252)
l16) Changes in Contributed Capital
Internal Enterprise Service
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Contribuied capital at June 30, 1996 $89,829,754 7,150,859
Addition:;:
Cash - connection fees 4,292,245 -
Cash - from other funds 601,338 28,666 Cash - from other sources Fixed assets 151 1,617 121,124 8 Contribuied capital at June 30, 199:7 $96,664.985 7,300,649
430,03 1 -
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1 7) Residual Eauity Transfers
Residual equity transfers are nonrecurring or nonroutine transfers of equity betwel
funds. A summary of the City's residual equity transfers at June 30, 1997 is as follows:
Special Capital Internal
General Revenue Projects Service The general fund transferred a one-time lump sm to the enterprise golf course fund for start-up costs. $(470,000) - -
The internal service health insurance fund transferred an over accumulation of monies to the contributing City funds. 79 1,734 44,85 1 3,411 (1 ,OOO,O(
The special revenue literacy grant fund
transferred the balance of the closed fund into the general fund. 1,487 (1,487) - -
(1 8) Claims and Judgments
The City is exposed to various risks of loss related to its operations, including lossi
associated with errors and omissions and injuries to employees and members of tl
public. The City uses a General Liability Self-Insurance Fund, a Health Insurance Fur
and a Workers' Compensation Fund (all internal service funds) to account for and financ
its uninsured risks of loss. All funds of the City make payments based on estimates of tl amounts needed to pay prior and current year claims and to establish a reserve f; catastrophe losses. The estimated claims payable reported at June 30, 1997 is based ( the requirements of Governmental Accounting Standards Board Statement No. 10, whic requires that a liability for claims be reported if information prior to the issuance of tl financial statements indicates that it is probable that a liability has been incurred at tl date of the financial statements and the amount of the loss can be reasonably estimated.
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Notes to General Purpose Financial Statements
(Continued)
c18) Claims and Judgments, (Continued)
Changes in the estimated claims payable amounts in fiscal years 1996 and 1997 for tl three internal service funds are as follows:
Current Year
Claims and Beginning Changes in Claim Ending Balance Estimates Payments Balance
General Liability Self-Insurance Fund:
1995-'96 179,293 654,530 (52,275) 78 1,548
1996-'97 781,548 (99,691) (423,038) 258,819
Health Insurance Fund:
1995-'96 367,776 1,094,444 (1,199,220) 263,000 1996-'97 263,000 1,176,111 (1,148,111) 291,000
Workers' Compensation Fund:
1995-96 1,014,739 484,23 1 (822,275) 676,695 1996-97 676,695 662,490 (576,293) 762,892
Ll9) Insurance Coverage
Effective January 1, 199 1, the City became a participating member of the Public Agenc Risk Shasing Authority of California (PARSAC), a risk-management pool for gener; liability claims. Under this program, the pool provides coverage up to a maximum c $500,000 per claim with a self-insured retention provided by the City also in the amow
of $500,000 per claim. In addition, excess general liability insurance coverage up tr
$10,000,000 is provided. Under the terms of the agreement with PARSAC, the City mus
maintain an unencumbered portion of fund equity equal to $1,500,000. At June 30, 1997
unencumbered fund equity for the General Liability Self-Insurance Fund wa
approximately $2,400,000.
Health insurance coverage for City employees is provided by either Kaiser, PERS, Shq
Healthcare or the Reliastar plan. The majority of City employees are covered through thc
Reliastar plan which is administered by Reliastar Life Insurance Company. Under thl City's agreement with Reliastar, Reliastar will provide coverage for each individual clain
over $75.000. If aggregate claims ffor the City as a whole exceed 125% of the average o the previous two months, Reliastar will assume payment for the excess amount.
The City is insured for workers' compensation claims by Employers Reinsurancl Corporation (Corporation). The Corporation provides coverage for losses whicl
exceeded the City's self-insured retention of $300,000 per claim.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(20) Joint Ventures
Encina Water Pollution Control Facility:
The Encina Water Pollution Control Facility (the Facility) is a sewer system own jointly by the Cities of Carlsbad and Vista, the Leucadia County Water District, t: Buena Vista Sanitation District, the Vallecitos Water District (formerly the San Marc County Water District) and the Encinitas Sanitary District. The Encina Wastewat
Authority (EWA) is the operator and administrator of the facility and is responsible f
the management, maintenance and operations of the joint system. Ownership percentag in the facility are determined by joint agreement at the time the assets are acquired. As June 30, 1996, the Cities and Districts have the following approximate ownersh interest:
City of Carlsbad 25%
Leucadia County Water District 19% Vallecitos Water District 19% Buena Vista Sanitation District 8%
City of Vista 24%
Encinitas Sanitary District 5%
The latest available financial statements of the EWA, dated June 30, 1996, show tl
following:
Total assets $13 3,283,6 13 Total liabilities 3,899,995
Fund balance $1 29,383,618
The EWA does not recognize net income or loss. Net operating expenditures in excess users' assessments are treated as accounts receivable on the EWA's books and charged users' accounts in the following year. Conversely, users' assessments in excess of n
operating expenditures are treated as a liability and credited against users' accounts, alr
in the following year. Under this basis, net operating expenditures for the EWA totalc
$499,220 in fiscal year 1996. The financial statements of the EWA can be obtained
6200 Avenida Encinas, Carlsbad, CA 92009.
The City accounts for its portion of the Facility as a fixed asset of the Sewer Enterpri
Fund.
Encina Financing: Joint Powers Authority:
The Encina Financing Joint Powers Authority (the Authority) was created on February 1989 between the City of Carlsbad (Carlsbad), the City of Vista (Vista), the Buena Vis Sanitation District (Buena) and the Leucadia County Water District (Leucadia). TI primary purpose of the Authority is to issue revenue bonds in order to finance tl expansion of the Facility.
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I $18,640,000 100.00%
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8 CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
QO) Joint Ventures, (Continued)
The Authority is governed by a Board of Directors, which consists of one directc
appointed by each member. The financial statements of the Authority can be obtained i
the City of Carlsbad's City Hall.
In August 1989, the Authority issued $33,500,000 of revenue bonds and execute installment purchase agreements for approximately the same amount. In February 199' bonds were issued by the Authority to refinance a portion of the cost of th improvements. Two of the members (Buena and Vista) defeased their 1989 obligation through available funds; while Carlsbad and Leucadia refinanced their obligation2 Repayment of the bonds will be accomplished through payments made by Carlsbad an1 Leucadia pursuant to the new installment purchase agreements. The individua agreements set forth the purchase price and specify the debt service requirements for eacl
member. The following is a table of the outstanding balance owed as of June 30, 1997 b:
each member and their approximate share in the additional capacity.
Installment Approximate Member Balance Share
City of Carlsbad $1 1,080,000 59.44% Leucadia County Water District 7,560,000 40.56%
The installment balances are secured by a pledge of the revenues from each member' wastewater system, net of a deduction for maintenance and operating costs. Significan covenants; within the agreements require the members to maintain insurance on thl facility, and establish wastewater rates which are sufficient to pay the operating costs anc
debt service on the bonds and which will result in net revenues equal to at least 1.2:
times the annual installment payments due.
The City's share in the accounts sf the Authority is recorded in the Sewer Enterprisc Fund. The expansion of the Facility is shown as a fixed asset of the Sewer Enterprisc Fund.
&! 1) Participation in San Diego Association of Governments (SANDAG)
The City is a member of the San Diego Association of Governments (SANDAG), a join powers agreement for the purpose of engaging in regional cooperative comprehensiw planning, to assist the Member Agencies, and to provide a regional reviewing organization for certain federal and state grant projects.
SANDAG is currently comprised of 18 incorporated Cities from the San Diego regior and the County of San Diego.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(22) Retirement Plan
The City contributes to the California Public Employees Retirement System (PERS), i
agent multiple-employer public employee retirement system that acts as a commc
investment and administrative agent for participating public entities within the State I California. For the year ended June 30, 1997, the payroll for employees covered by tl
PERS was $23,665,763. Total payroll for the same period was $26,459,938.
All full-time employees are eligible to participate as members of PERS. Benefits VE
after an employee has been a member of the plan for five years. Employees are eligit
to retire after ages 50 to 60 with 5 years of credited service. Annual retirement benef
are determined based on age at retirement, the length of membership service and tl
amount of earnings based on the highest twelve consecutive months average. The PEF also provides death and disability benefits. These benefit provisions and all 0th
requirements are established by state statute.
Employees are required to make contributions ranging from 7 to 9 percent of gross pa The City is required to contribute the remaining amounts necessary to fund the benefi for its members, using the actuarial basis recommended by the PERS actuaries a actuarial consultants and adopted by the PERS Board of Administration. The employ1
contributions are made by the City on behalf of the employees.
The amount shown below as the "pension benefit obligation" (PBO) is a standardizc
disclosure measure of the present value of the pension benefits, adjusted for the effects
projected salary increases and step-rate benefits, estimated to be payable in the future as
result of employee service to date. The measure is intended to help users assess tl
funding status of the PERS on a going-concern basis, assess progress made
accumulating sufficient assets to pay benefits when due, and make comparisons amor
employers. The measure is the actuarial present value of credited projected benefits, ar
is independent of the funding method used to determine contributions to the PERS.
The PBO was computed as part of actuarial valuations performed as of June 30, 1995.
more recent actuarial valuation or annual update is not available at this time. Significa
actuarial assumptions used in the valuation include (a) a rate of return on the investme
of present and future assets of 8.50 percent a year compounded annually (8.5 percent
of June 30, 1990), (b) projected salary increases of 4.5 percent a year compound1
annually (5 percent as of June 30, 1990), attributable to inflation, (c) additional project1
salary increases of 0.0 percent (2.75 percent for Carlsbad's safety employees) a year
percent as of June 30, 1990 for all employees), attributable to seniority/merit, and (d) 1
post-retirement benefit increases. The impact on current year contributions from chang
in actuarial assumptions is not available.
The total unfunded (overfunded) pension benefit obligation applicable to City employe was $(12,853,990) at June 30, 1995 (the date of the latest actuarial valuations) is follows:
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I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
c22) Retirement Plan, (Continued)
Pension benefit obligation: Retirees and beneficiaries currently receiving
benefits and terminated employees not yet
receiving benefits $29,861,70 Current employees:
Accumulated employee contributions including
allocated investment earnings 20,86 1,07
Employer financed-vested 20,3 95,47 Employer financed-nonvested 557.85
Total pension benefit obligation 7 1,676,ll
84,530,lO
$( 12,853,99
Net assets available for benefits (actuarial value)
Changes in pension benefit obligation from last year resulted from the following:
Change:; in actuarial assumptions
Unfunded (overfunded) pension benefit obligation
Changes in benefit provisions !t - -
The marlket value of the net assets available for benefits as of June 30, 1995 wai I $89,855,496.
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefi cost method. It takes into account those benefits that are expected to be earned in thc future as well as those already accrued. According to this cost method, the normal cos for an employee is the level amount which would fund the projected benefit if it wen paid annually from date of employment until retirement. PERS uses a modification of thc Entry Age Cost Method in which the employer's total normal cost is expressed as a leve percentage of payroll. PERS also uses the level percentage of payroll method to amortizc any unfunded actuarial liabilities. The amortization period of the unfunded actuaria. liability ends on June 30,2000.
The significant actuarial assumptions used to compute the actuarially determinec contribution requirement are the same as those used to compute the pension benefii obligation, as previously described.
The actuarially determined employer and employee contributions applicable to the City ai June 30, 1996, based on an actuarial valuation as of June 30, 1995, were as follows:
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(22) Retirement Plan, (Continued)
Miscellaneous Safety Employees Employees Covered Covei Contributions Payroll Contributions Paw
Required normal cost contribution $2,136,269 15.18% $1,778,656 22.3f Amortization of the unfunded actuarial accrued liability 27,574 .20% (67,423) (.8L
Total required contributions $2,163,843 15.38% $1,711,233 21.5C
Actual employer contributions $1,208,645 8.59% $1,008,734 12.6; Contributions made by the City on behalf of employees 955,198 6.79% 702,499 8.8:
Total actual contributions $2,163,843 15.38% $1,711,233 21.5C
The following is a three-year trend information which gives an indication of the progre made in accumulating sufficient assets to pay benefits when due:
1995 1994 1993
Net assets available for benefits as a
percentage of pension benefit obligation 117.9% 121.2% 100.8%
Unfunded (overfunded) pension benefit
obligation as a percentage of
annual covered payroll (56.1%) (60.2%) (2.3 yo)
Actuarially determined employer contributions as a percentage of annual covered payroll 10.1% . 10.2% 11.5%
Ten-year trend information is not currently available from the California Pub1 Employees Retirement System; therefore, only the available information is presented.
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I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
c22) Retirement Plan, (Continued)
Required Supplementary Information
Analysis of Funding Progress (Unaudited)
Actuarial Net Assets Unfunded Unfunded Pension
Valuation Available Pension (Overfunded) Annual Benefit Obligation
as of l'or Benefits, Benefit Percentage Pension Benefit Covered as a Percentage of
June 30 at Cost Obligation Funded Obligation Payroll Annual Covered Payroi
1987 $24,678,600 $26,908,600 9 1.7% $2,230,000 $12,973,300 17.2%
1988 29,366,800 31,190,600 94.2% 1,823,800 14,130,300 12.9%
1989 34,123,100 36,363,400 93.8% 2,240,300 16,404,700 13.7%
1990 40,4 18,900 42,870,400 94.3% 2,45 1,500 18,739,300 13.1%
1991 46,179,400 49,352,600 93.6% 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%
1993 60,607,800 60,097,500 100.8% (5 10,300) 22,238,900 (2.3%)
1995 84,530,000 71,676,100 117.9% (12,854,000) 22,929,500 (56.1%)
1994 75,945,500 62,685,300 121.2% (13,260,300) 22,038,100 (60.2%)
Q3) Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance wit
Internal lievenue Code Section 457. The plan, available to substantially all full-tim employees, permits them to defer a portion of their salary until kture years. Amount deferred may not exceed the lesser of $7,500 or 25% of a participants' "includabl
compensation," as defined in the participation agreement. The deferred compensation i
not available to employees until termination, retirement, death or unforeseeabl
All amounts of compensation deferred under the plan, all property and rights purchase(
with those amounts, and all income attributable to those amounts, property or rights arc
(until paild or made available to the employee or other beneficiary) solely the property an(
rights of the City (without being restricted to the provisions of benefits under the plan) subject only to the claims of the City's general creditors. Participant's rights under thc plan are equal to those of general creditors of the City in an amount equal to the fai market value of the deferred account of each participant.
The City believes it has no liability for losses under the plan but does have the duty o due care that would be required of an ordinary prudent investor. The City believes that i is highly unlikely that it will use the assets to satisfy the claims of general creditors in thl
1 emergency.
1 future.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(23) Deferred Compensation Plan. (Continued)
As of January 1, 1997, the City formally established a trust in accordance with Interr
Revenue Code Section 457(g) for one of its deferred compensation plans to provil
protection from the claims of the employer’s general creditors. The deferrl compensation assets placed in the trust have been removed from the balance sheet. , June 30, 1997, the deferred compensation assets not held in a trust account, but includc in an Agency fund, were $3,036,335, carried at market value.
Distributions are made upon the occurrence of the participant’s termination, retiremer
death or unforeseen emergency, and in a manner in accordance with the election made 1
the participant. As required by Section 1.457-20) of the Internal Revenue Servil
regulations, plan assets not held in trust are held as unrestricted City assets subject only
the claims of the general creditors of the City.
(24) Post-Retirement Health Care
In addition to the pension benefits described in Note 22, all former employees of tl
Carlsbad Municipal Water District (including dependents) are eligible for post-retireme health care benefits if they voluntarily retire after the age of 50 with no less than 5 yea of service and whose age combined with years of service equals 70 or more. Current1 nine retirees meet these eligibility requirements and are receiving benefits.
The City pays for 100% of the premiums for health insurance which is coordinated wi Medicare and other benefits provided by federal and state law, when available, to tl extent it reduces the cost of insurance premiums. Expenditures for post-retirement heal care benefits are funded on a pay-as-you-go basis. Expenditures of approximate $27,800 were charged to expense for post-retirement health care costs during 199 Based on an actuarial valuation performed as of November 1991, the District’s liabili for the current and past service costs of these benefits is approximately $1,600,000.
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I CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
@5) Segment Information for Enterprise Funds
The City maintains four enterprise funds that provide water, sewer and other service Segment information for the year ended June 30, 1997 is as follows:
Carlsbad Municipal
Water Golf Solid
-- District Course Sewer Waste - Tot
Operating revenues $16,69 1,234 3,896 5,184,405 1,141,574 23,021
Operating expenses: Depreciation 1,059,808 - 1,257,722 354 2,31:
Plant operations 13,632,723 252.505 2,634,802 133,5 15 16,65:
Operating income (loss) 1,998,703 (248,609) 1,291,881 1,007,705 4,045
Nonoperating activities: - - Property taxes 755,391 75: Other, net 726,187 75,468 875,881 137,679 1,81:
Net income (loss) $ 3,480,281 (173,141) 2,167,762 1,145,384 6,62(
Contribu1,ed capital: Beginning balance $44,708,754 4,225,190 40,895,8 10 - 89,825
Current year additions 3,486,570 470,000 2.877,69 1 970 6,835
Ending balance $48,195,324 4,695.190 43,773 50 1 970 96,664
Fixed assets: - 3,207
Net working capital $25,083,827 2,016,568 28,711,489 1,233,923 57,045
Additions $ 2,598,559 184,225 420,710
Long-Tem liabilities $ 9,004,840 2,147,613 11,650,354 - 22,802
Total assets $88,300,907 7,835,545 79,907,752 1,243,791 177,287 Total liakdities 13.1 69,006 4,273,607 13,009,596 9.567 30.461
Total equity $75,131,901 3,561,938 66,898,156 1,234,224 146,826
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(26) Special Assessment Bonds Without Government Commitment
As of June 30, 1997, the City has five series of Assessment District Bonds outstanding the amount of $18,017,795. These bonds were issued under the provisions of tl Improvement Bond Act of 191 1 and 191 5 and were used to finance public infrastructu improvement projects. Reserve funds of approximately $2,095,000 are held to secu payment of principal and interest on the outstanding bonds.
For the bond issuances noted above, the City is not obligated in any manner for tl payment of debt service in the event of default by the property owners but is only actir as agent for the property owners in collecting the assessments, forwarding the collectior to bondholders, and initiating foreclosure proceedings, if appropriate. Accordingly, r liability for these bond issuances has been recorded in the General Long-Term Del Account Group and all debt service transactions have been recorded in an Agency fund.
The Golf Course Enterprise Fund of the City has acquired property subject to specii assessments associated with these bonds. The Golf Course Funds obligation for the:
assessments has been reflected in the accompanying financial statements as a liability (
that fund.
(27) Mortgage Revenue Bonds
Single-Family Mortgage Revenue Bonds have been issued to provide funds to purchai
mortgage loans secured by first trust deeds on newly-constructed and existing sing1
family residences. The purpose of this program is to provide low interest rate hon mortgage loans to persons of low or moderate income who are unable to qualify fi conventional mortgages at market rates. Multi-Family Housing Revenue Bonds a issued to provide construction and permanent financing to developers of multi-fmi residential rental projects located in the City to be partially occupied by persons of low t
moderate income.
The total mortgage revenue bonds outstanding as of June 30, 1997 is $3 1,035,000. TI bonds, together with interest thereon, are limited obligations of the City payable sole from bond proceeds, revenues and other amounts derived solely fiom home mortgage ar developer loans secured by first deed of trust, irrevocable letters of credit, and irrevocab
surety bonds. In the opinion of City officials, these bonds are not payable fiom ar revenues or assets of the City, and neither the full faith and credit nor the taxing power ( the City of Carlsbad, the State of California, nor any political subdivision thereof, obligated to the payment of the principal or interest on the bonds. Accordingly, r liability has been recorded in the General Long-Term Debt Account Group.
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
Q8) Industrial Development Bonds
The Indu stria1 Development Authority (Authority) of the City has issued $3,270,000 Industrial Development Revenue Bonds. Any costs relating to the issuance of the Bond as well as the principal and interest payments, are to be paid by the private pan benefiting from the Bond issue.
c29) Commitrnents and Contingencies
The City is a defendant in certain legal actions arising in the normal course of operation:
In the opinion of management and legal counsel, any liability resulting from these action will not result in a material adverse effect on the City’s financial position, because th City has :set aside sufficient monies to cover confirmed adverse actions.
In May 1993, the City of Carlsbad entered into an agreement with the San Dieg Association of Governments (SANDAG), whereby SANDAG will loan up t $10,000,000 of TransNet local funds to the City of Carlsbad on a reimbursement basi: The funds are to be used by the City of Carlsbad to accelerate the implementation of th Poinsettia Lane and La Costa Avenue/I-5 Interchange Improvement Project. No mone was borrowed under this agreement during the year ended June 30,1997.
c30) Subsequent Events
On September 1 7 1997 the Carlsbad Public Improvement Corporation issued $6,595,00
of Certificates of Participation, Series 1997. The certificates were issued for the purpos
of refunding all of the Carlsbad Public Improvement Corporation’s previously issuel
$8,690,000 Hosp Grove Certificates of Participation, Series 1988.
Also on September 1, 1997 the Carlsbad Public Improvement Corporation issue( $7,400,000 of 1997 Water Revenue Certificates of Participation on behalf of the Carlsbac
Municipal Water District. The certificates were issued for the purpose of refunding all o
the Carls bad Municipal Water District’s previously issued $14,370,000 1988 Certificate;
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CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(3 1 ) Proposition 2 18
Recent developments, including the voters’ enactment of Proposition 2 1 8 in Novembl
1996, have affected the manner in which local government may impose, extend ( increase certain taxes, assessments and property-related fees. The more significa changes which may effect local government revenue streams are as follows:
1. If there is a majority protest against an assessment, the assessment cannot t
imposed. This means that increasing an assessment requires majority voti
approval.
Certain fees are defined as property-related. Some property-related fees requi
voter approval at an election; others allow for a majority protest but do not requi
an election. Property-related fees must comply with certain substanti1
provisions of Proposition 2 18, which generally limit the amount of the fees.
Any local tax, assessment, fee or charge is subject to reduction or repeal t
initiative.
2.
3.
Uncertainty exists as to the scope and impact of these developments on local governmei revenue streams. Future legislation and litigation may resolve some of the: uncertainties.
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The general fund is used to account for resources traditionally associated with government whicl are not required llegally or by sound financial management to be accounted for in another fund.
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CITY OF CARLSBAD General Fund
Schedule of Revenues - Budget and Actual (Budgetary Basis) Year Ended June 30,1997
Actual on Variance
Budget Budgetary Basis Over (Und Taxes: Property taxes $1 1 , 100,000 1 1,23 8,207 138,207 Sales and use taxes 12,115,000 12,495,143 380,143 Transient lodging taxes 3,500,000 3,675,472 175,472 Franchise taxes 1,5 10,000 1,512,823 2,823 Real property transfer taxes 360,000 465,668 105,668
Total taxes 28,585,000 29,387,3 13 802,3 13
Construction permits 1,000,000 1,262,177 262,177 Business licenses 1,400,000 1,5 10,462 1 10,462 License tax on new construction 350,000 396,529 46,529 Other 982,000 1,065,484 83,484
Total licenses and permits 3,732,000 4,234,652 502.652
Grant revenue - 567,775 567,775
Vehicle license fees 2,550,000 2,666,452 1 16,452 200,000 2 19,088 19,088 Property tax reimbursement
Total state subventions 2,750,000 2,885,540 135,540
Planning fees 1,350,000 1,649,806 299,806 Building department fees 7 0 0 , 0 0 0 943,739 243,739 Engineering fees 2,300,000 3,013,3 13 713,313 Ambulance fees 550,000 574,692 24,692 Parks and recreation fees 832,100 924,840 92,740 Property rentals 170,000 183,895 13,895 Other 583,900 607,117 23,217
Total charges for services 6,486,000 7,897,402 1,411,402
Vehicle code fines 330,000 305,721 (24,279)
Total fines and forfeits 330,000 3 17,892 (12,108)
Interest income 1,400,000 1,157,912 (242,088)
Interdepartmental services:
Engineering 550,000 425,993 (1 24,007)
Other 1,200,000 1,609,lO 1 409,lO 1
Total interdepartmental services 1,750,000 2,042,503 292,503
10,000 24,440 14.440
Reimbursed expenditures 950,000 1,223,285 273,285 Other 247,000 263.482 16,482
1,197,000 1,486,767 289,767 Total miscellaneous
Total revenues $46,240,000 50,002,196 3,762,196
Licenses and permits:
Intergovernmental:
State subventions:
Charges for services:
Fines and forfeits:
Other - 12,171 \ 12,171
Legal - 7,409 7,409
Donations
Miscellaneous:
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CITY OF CARLSBAD
General Fund
Schedule of Expenditures - Budget and Actual (Budgetary Basis) Year Ended June 30, 1997
Actual on Variance- Budget Budgetary Basis Over (Under General government:
City council $ 204,219 200,734 (3,485) City manager 91 9,196 919,196 - City clerk 379,546 357,539 (22,007) Visitors’ bureau 280,260 280,260 Community assilstance 196,000 185,600 (1 0,400)
City attorney 580,505 580,505
-
Hiring center 80,000 75,046 (4,954)
l~inance 1,159,398 1,115,399 (43,999) City treasurer 1 17,745 11 1,828 (579 1 7)
-
Audit 82,914 68,604 ( 1 4,3 1 0) Purchasing 402,864 392,3 15 (1 0,549) Human resources 1,206,923 1 , 167,873 (39,050) Other 745,474 688,508 (56,966)
Total general :government 6,355,044 6,143,407 (2 1 1,637)
Police protection 9,73 1,802 9,686,273 (45 , 5 29) Fire protection 7,371,973 7,369,256 (2,7 17)
Total public si%fety 17,103,775 17,055,529 (48,246)
Community development 1,074,823 974,891 (99,932)
Planning 2,207,187 2,145,242 (6 1,945)
Total commuriity development 8,389,717 8,224,008 (165.709)
library 2,618,855 2,586,403 (32,452) ’4rts program 302,167 299.450 (2,7 17)
Total library and the arts 2.92 1,022 2,885,853 (35.169)
Public safety:
Community development:
Engineering 4,O 1 8,498 4,O 15,221 (3,277)
13uilding inspec tion 1.089,209 1,088,654 (555)
Library and the arts:
Community services:
,4dministration 623,799 6 19,839 (3 ,960) Parks and recreation 4,175,693 4,168,634 (7,059) Street and signal maintenance 1,808,029 1,808,047 18 13uilding maintenance 1,274,992 1,275,040 48
Total community services 7,882,5 13 7,871,560 (1 0,953)
Total expenditures $42,652,071 42,180,357 (47 1.7 14)
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CITY OF CARLSBAD
General Fund
Comparative Schedule of Revenues
Year Ended June 30, 1997
1996 1997 Increase Actual Actual (Decrease)
Taxes: Property taxes $10,895,405 1 1,238,207 342,802
Sales and use taxes 1 1,542,970 12,495,143 952,173
Transient lodging taxes 3,406,9 17 3,675,472 268,555 Franchise taxes 1,447,379 1,5 12,823 65,444 Real property transfer taxes 293,378 465,668 172,290
Total taxes 27,586,049 29,387,3 13 1,80 1.264
Construction permits 917,788 1,262,177 344,389 Business licenses 1,49 1,159 1,5 10,462 19,303 License tax on new construction 67,440 396,529 329,089
Other 5 17,957 1,065,484 547,527
Total licenses and permits 2,994,3 44 4,234,652 1,240,308
Grant revenue 71,382 567,775 496,393
Vehicle license fees 2,492,25 1 2,666,452 174,20 1 Property tax reimbursements 183,408 219,088 35,680
Total state subventions 2,675,659 2,885,540 209,88 1
Planning fees 890,898 1,649,806 758,908 Building department fees 558,621 943,739 385,118 Engineering fees 1,101,618 3,O 13,3 13 1,911,695 Ambulance fees 422,302 574,692 152,390 Parks and recreation fees 787,656 924,840 137,184 Property rentals 169,577 183,895 14,3 18 Other 5 1 1,749 607s 17 95,368
Total charges for services 4,442,42 1 7,897,402 3,454,98 1
Vehicle code fines 329,746 305,721 (24,025) Other 5,649 12,171 6,522
Total fines and forfeits 335,395 3 17,892 (1 7.503)
Interest income 1.40 1,592 1,157,912 (243,680)
Interdepartmental services:
Engineering 552,853 425,993 (126,860)
Other 1,488,015 1.609,lO 1 121,086
Licenses and permits:
Intergovernmental:
State subventions:
Charges for services:
Fines and forfeits:
Legal 13,451 7,409 (6,042)
Total interdepartmental services 2,054,3 19 2,042,503 (11,816)
Donations 245 24,440 24,195
Miscellaneous:
Reimbursed expenditures 692,43 1 1,223,285 530,854 Other 147,64 1 263,482 115,841
Total miscellaneous 840,072 1,486.767 646,695
Total revenues $42.40 1,478 50,002.196 7,600.71 8
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CITY OF CARLSBAD
Greneral Fund
Comparative Schedule of Expenditures
Year Ended June 30, 1997
1996 1997 Increase Actual Actual (Decrease) General government:
City council $ 176,855 198,867 22,o 12 City manager 805,256 903,568 98,3 12 City clerk 394,289 336,417 (57,872) ’Visitor’s bureau 184,255 207,593 23,338 Community assistance 36,000 35,600 (400) Hiring center 75,578 75,046 (532) City attorney 51 1,313 568,277 56,964 Finance 928,481 1,084,277 155,796 City treasurer 78,982 1 12,087 33,105 Audit 20,095 33,550 13,455 l’urchasing 360,s 18 39 1,747 30,929 14uman resourcc:s 825,9 12 991,134 165,222 Other 433,324 678,953 245,629
Total general government 4,83 1,158 5,617,116 785,958
Police protection 9,528,5 10 9,657,322 128,812 Fire protection 7,053,852 7,234,4 12 180,560
Total public safety 16,582,362 16,89 1,734 309,372
Community development 909,329 913,939 4,610 Engineering 3,182,877 3,682,939 500,062 I’lanning 1,83 1,291 1,92 1,739 90,448 13uilding inspec tion 854,093 1,076,9 12 222,819
Total community development 6,777,590 7,595,529 8 17,939
Library 2,467,606 2,534,746 67,140 ,4rts program 263,272 287,842 24,570
Total library and the arts 2,730,878 2,822,588 91,710
Administration 586,697 613,454 26,757
Street and signal maintenance 1,709,113 1,728,623 19,510 Building maintenance 1.230,262 1,178,285 (5 1,977)
Total community services 7,092.592 7,636,225 543,633
Total expenditures $3 8,O 14.580 40,563,192 2,548,612
Public safety:
Community development: m
Library and the arts:
Community services:
]Parks and recreation 3,566,520 4,115,863 549,343
83
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues whose expenditures i 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 affordat
housing needs of lower and moderate income households.
Calavera Heights Mitigation
To account for the funding of a maintenance and management program of the Calavera Heigk
Gnatcatcher Mitigation Preserve.
Civic Arts Program
To account for transfers from the General Fund to support the civic arts program.
Community Development Block Grant
To account for federal block grants and commercial and residential loans for communi
development.
COPS
To account for state funding for local public safety services, for the purpose of ensuring pub1
safety.
Donations and Bequests
To account for donations and bequests received from outside parties for designated Ci
purposes.
Federal Grants
To account for federal grants received to support the City’s library programs, law enforceme
programs and habitat preservation.
Gas Tax
To account for receipts and expenditures of money apportioned under Streets and Highwa:
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 lo
and moderate income housing.
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&lice Asset Forfeiture
To account for money received under federal and state programs distributing propert
confiscated fiom illegal activities.
- Section 8 Housing Authority
TID 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 Older American
1
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&ecial Benefit Districts
To account for revenues and expenditures from property tax assessments for street lighting an(
landscaping.
- &ate Grants
To account for State of California Library and Civic Arts grants.
1 85
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30, 1997
Calavera Community Donations
Affordable Heights Civic Arts Development and F
Housing Mitigation Program Block Grant COPS Bequests i
Assets
Cash and investments $4,680,853 119,296 3 15,48 1 2,543 140,090 225,878
Receivables:
Loans 5,568
Taxes
Accounts, net
Due from other governments 94,158
Prepaid expenditures
Total assets $4,680,853 1 19,296 315,481 102,269 140,090 225,878
Liabilities and Fund Balances
Liabilities:
Accrued liabilities $ 2,155 12,804 13,362 17,074
Due to other funds 80,995
Due to other governments 1,369
Deferred revenue -
Total liabilities 2,155 - 95,168 13,362 17,074 -
Fund balances:
Reserved for:
Loans receivable 5,568
Prepaid expenditures
Low and moderate
income housing 2,O 19,055
Encumbrances 4,040 60,000 9 1,029 5,646 5,568
Designated for appioved
capital projects 1 15,643
Designated for continuing
appropriations 20,000 16,625
Undesignated 2,635,603 119,296 139,838 (89,496) 121,082 186,611 -1
Total fund balances 4,678,698 119,296 3 15,481 7,101 126,728 208,804 -
Total liabilities and
fund balances $4,680,853 119,296 315,481 102,269
Unreserved:
140,090 225,878 - -
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I 4,750,106 40,748 3,520,620 795,218 . 137,476 - 1,998,398 178,404 16,
fl 4,789,538 -- 49,350 3,532,095 809,141 703,558 .- 38,455 2,103,917 198,368 17,
Low and
Library Moderate Police Section 8 Special
Gas Audio-Visual Income Asset Housing Senior Benefit State - Tax Insurance Housing Forfeiture Authority Nutrition Districts Grants 3
4,789,538 49,350 1,220,365 809,141 439,228 2,082,863 198,368 15,
2,302,876 2, 8,854 13,679
15,947 218 7,375
50,760 38,237
- 197,623 - --
39,432 8,602 11,475 13,923 59,828 3,918 105,5 19 19,964
50 1,482 20,395 I
4,772
-- 14,142 -
39,422 8,602 11,475 13,923 ~ 566,082 38,455 105,519 19,964 -
--
I
2,302,876 2,
500,000 2,
197,623
15,170 1,475 202 100,818 17,810 14,144 74,062 7,366
7,aloo
9,500 2 18,462 28,299
4,727,936 29,773 717.542 475,938 177,957) (14,144) 1,924,336 142,739 11,
I 87
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Year Ended June 30, 1997
Calavera Community Donations
Affordable Heights Civic Arts Development and I
Housing Mitigation Program Block Grant COPS Bequests j
Revenues:
Taxes $-
Intergovernmental 567,430 158,748 i
Charges for services 1,060,440
Interest income 160,548 25,421 18,033 91 6,845 6,430
Donations 99,970
Miscellaneous 1,413,528 - -
Total revenues 2,634,5 16 25,42 1 18,033 567,52 1 165,593 106,400 1
Expenditures:
Current:
Public safety 38,865
Housing and welfare 3 1,532 573,556
Library and the arts 26,780 60,638
Community services 42,228 -
Total expenditures 31,532 - 26,780 573,556 38.865 102,866 -
Excess (deficiency) of
revenues over (under)
expenditures 2,602,984 25,421 (8,747) (6,035) 126,728 3,534 -
Other financing sources (uses):
Operating transfers in 13,215 1,050
Operating transfers out -
Total other financing
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing
sources (uses) 13,215 - 1,050 - -
uses 2,616,199 25,421 (7,697) (6,035) 126,728 3,534
Fund balances at beginning
of year, as restated 2,062,499 93,875 323,178 12,369 205,270
Residual equity transfers in 767
Residual equity transfers out -
126,728 208,804 - Fund balances at end of year $4,678,698 1 19,296 315,481 7,101 -
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Library Moderate Police Section 8 Special
Gas Audio-Visual Income Asset Housing Senior Benefit State I - Tax Insurance Housing Forfeiture Authority Nutrition Districts Grants
138,372 2,688,905 80,520 284,783
I 1,236,734
g 233:479 3,135 75,927 50,542 18,885 103,661 12,135
8 1,471,758 94,803 362,088 194,269 2,819,590 175,854 1,769,145 296,918 1
285,634
9 1,668 134 1,122
95,334
1,545 - 527 5,355 111,800 - 124,362 - -
458,152
75,548 2,838,313 175,854
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102,582 352,590
455,310 102,582 75,548 458,152 2,838,313 175,854 1,77 1,6 10 352,590 -
1,016,448 (7,779) 286.540 (263,883) (18,723) - (2,465) (55,672) -
- (9,237) (7,500) A
- 17,500) A (9,237)
1,008,948 (7,779) 286,540 (273,120) (1 8,723) (2,465) (55,672)
3,727,943 48,527 3,234,080 1,064,2 16 149,092 1,98 1,223 235,563 1
13,2 15 4,122 7,107 19,640
-- - (1,487) - I 4,750.106 40,748 3,520,620 795,2 18 137,476 - 1,998,398 178,404 1
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CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
Year Ended June 30, 1997
Affordable Housing Trust Calavera Heights Mitigation
Actual on Variance- Actual on Variafi
Budgetary Over Budgetary Ove
Budget Basis (Undc Basis (Under) Budget
Revenues:
Taxes $-
Intergovernmental
Charges for services 455,000 1,060,440 605,440
Interest income 45,000 160,548 1 15,548 25,42 1 25,4
Donations
Miscellaneous 1,413,528 1,4 13,528 -
Total revenues 500,000 2,634,5 16 2,134.5 16 25.42 1 25,4
Expenditures:
Current:
Public safety
Housing and welfare 125,514 55,572 (69,942)
Library and the arts
Community services ~
Total expenditures 125,514 55,572 (69,942) -
Excess (deficiency) of
revenues over (under)
expenditures $374,486 2,578,944 2,204,458 25,42 1 25,4 -
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Civic Arts Program Community Development Block Grant
Actual on Variance- Actual on Variance-
Budgetary Over Budgetary Over - E& -- Elasis (Under) Budget Basis (Under)
647,000 567,430 (79,570)
113,033 18,033 500 91 (409)
-- --
-- - 1 :1,033 18,033 647,500 567,52 1 (79,979)
1,2 18,728 664,752 (553,976)
202,382 86,780 (1 15,602)
-- --
- 202,382 - 8tj,7XO (1 15,602) 1,2 1 8,728 664,752 (553,976)
(68,747) 133,635 , (571,228) (97,23 1) 473,997 -- (202,382) --
(Conti
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CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1997
COPS Donations and Bequests
Actual on Variance- Actual on Varian
Budgetary Over Budgetary Ove
Budget && (Unfavorable) Budget Basis w
Revenues:
Taxes $-
Intergovernmental 158,748 158,748
Charges for services
Interest income 6,845 6,845 6,430 6,4
Donations 1 12,000 99,970 (1290
Miscellaneous -
Total revenues 158,748 165,593 6,845 1 12,000 106,400 m
Expenditures:
Current: Public safety 158,748 36,114 (122,634) .-
Library and the arts 79,103 73,77 1 (533
Community services 133,108 5 1,289 (81,8
Total expenditures 158,748 36,114 (122,634) 212,211 125,060 (87,1
Housing and welfare
Excess (deficiency) of
revenues over (under)
expenditures $- 129,479 129,479 (100,211) (1 8,660) 81,5 -
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Federal Grants Gas Tax
Actual on Variance- Actual on Variance-
Bwdgetary Over Budgetary Over
Eludget -- I3asis (Under) Budget Basis (Under)
1,225,000 1,236,734 11,734
83,130 11 1,637 28,507
1,798 1,798 200,000 233,479 33,479
-- -- 1,545 1,545
- 83,130 - 113,435 30.305 1,425.000 1,471,758 46,758
92,367 02,367
462,106 (105,763)
(1 05,763)
- 205,259 - 205,259 567,869
- 297,626 - 207,626 567,869 462,106
(2 -- 14,496) (1 -- 134,19 1) 30,305 857,131 1,009,652 15232 1
(Cont
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CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1997
Library Audio-visual Insurance Low and Moderate income I.
Actual on Variance- Actual on \
Budgetary Over Budgetary
Budget Basis Budget Basis (Under)
Revenues:
Taxes $- 300,000 285,634
Intergovernmental
Charges for services 105,000 91,668 (13,332)
Interest income 5,000 3,135 (1,865) 55,000 75,927
Donations
Miscellaneous 527
Total revenues 110.000 94,803 (1 5,197) 355,000 362,088
Expenditures:
Current:
Public safety
Housing and welfare 132,141 75,750
Community services
Library and the arts 116,628 113,557 (3,071)
Total expenditures 1 16,628 113,557 (3,071) 132,141 75,750
Excess (deficiency) of
revenues over (under)
expenditures $ (6,628) (18,754) (12,126) 222.859 286,338
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4ctual on Variance- Actual on Variance-
13udgetary Over Budgetary Over
Budget Basis (Under) Budget Basis (Under)
90,000 138,372 48,372 3,054,000 2,688,905 (365,095)
60,000 50,542 (9,458) 8,000 18,885 10,885
(78,200)
150,000 194,269 44,269 3,252,000 2,819,590 (432,4 10)
5,355 5.355 190,000 1 1 1,800
777,432 77 1,693 (5,739) 1 3,258,043 2,876,169 (381,874)
777,432 77 1,693 (5,739) 3,258,043 2,876,169 (38 1,874)
(627,432) (577,424) 50,008 (6,043) (56,579) (50,536)
(Cont
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CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1997
Senior Nutrition Special Benefit District
Actual on Variance- Actualon V
Budgetary Over Budgetary
Budget Basis (Under) Budget Basis (
Revenues:
Taxes $-
Intergovernmental 76,865 80,520 3,655
Charges for services 1,508,400 1,54 1,122
Interest income 65,000 103,661
Donations 126,160 95,334 (30,826)
Miscellaneous 11 1,200 124,362 ,
Total revenues 203,025 175,854 (27,171) 1,684,600 1,769,145 .
Expenditures:
Current:
Public safety
Library and the arts
Community services 1,972,893 1,842,191 C
Total expenditures 194,020 188,870 (5,150) 1,972,893 1,842.191 C
Excess (deficiency) of
revenues over (under)
expenditures $ 9,005 (1 3,O 16) (22.02 1) (288,293) (73.046) .
Housing and welfare 194,020 188,870 (5,150)
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State Grants Totals
Actual on Variance- Actual on Variance-
Ehdgetary Over Budgetary Over
(Under) Budget - Basis [Under) Budget &&s
1,525,000 1,522,368 (2,632)
24 1,940 284,783 42,843 4,35 1,683 4,030,395 (32 1,288)
2,068,400 2,693,230 624,830
10,000 12,135 2,135 448,500 716,930 268,430
238,160 195,304 (42,856)
30 1,200 1,657,117 1,355,9 17
25 1,940 :!96,9 18 44,978 8,932,943 1 0,8 1 5,344 1,882,40 1
1,028,547 900,174 (128,373)
4,928,446 3,861,113 (1,067,333)
402,029 3 8 8,255 (13,774) 800,142 662,363 (1 37,779)
2,879,129 2,560,845 (3 18,284)
402,029 3 88,255 ( 1 3,774) 9,636.264 7,984,495 (1,65 1,769)
.~
(150,089) (9 1.337) 58,752 (703,321) 2,830,849 3,534,170
97 Y
I - DEBT SERVICE FUNDS
Debt Service Funds are used to account for accumulation of resources for, and payment 0'
principal and interest on the City's general bonded debt and special assessment bonds for whic
the City is obligated in some manner.
- College Boulevard
To accumulate property assessments levied for payment of debt service on 1986 Colleg Boulevard Assessment District Bonds.
Hosr, Grove COPS
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Combining Balance Sheet
June 30,1997
College Hosp Grove Redevelopment
Boulevard COPS Bonds Total:
Assets
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CITY OF CARLSBAD Debt Service Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Year Ended June 30, 1997
College Hosp Grove Redevelopment
Boulevard COPS Bonds Totals
W evenue s : - 'Taxes $ 613,362 1,14233 7 1,755,89
Ihterest income 11 5,248 104,096 82,887 302,23 1 IMiscellaneous 271,993 - 1,105 273,09
1,000,603 104,096 1,226,529 2,331,22 Total revenues
Expenditures: Current:
IDebt service:
General govenment 3,200 - 15,608 1 8,80:
Principal retirement 390,000 330,000 272,240 992,241 Interest and fiscal charges 506,425 534,734 1,343,652 2,384,s 1
Total expenditures 899,625 864,734 1.63 1,500 3,395,85'
Excess (deficiency) of revenues over (under)
expenditures 100,974 (760.638) (404,971) (1,064,63
Other financing sources (uses): Operating transfers in - 797,500 - 797,50( - - (430,00( Operating transkrs out (430,000) 1 I'roceeds of advances - 538,477 538.47' - -
Total other financing - 797,500 108,477 905,97' sources (uses) -
Excess (deficiency) of revenues and other financing sources over (under) expenditures
and other financing uses 100,978 36,862 (296,494) (1 58,651
Fund balances at beginning
of year 2,o 17,463 903,224 1,630,405 435 1,091
Fund balances at end of year $2,118,441 - 940,086 1,333,911 4,392,431
101
CITY OF CARLSBAD
Debt Service Fund
Redevelopment Bonds
Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
Year Ended June 30, 1997
Actual on Variance- Budgetary Over Basis (Under) Budget
Revenues: Taxes $1,200,000 1,142,537 (57,463)
Interest income 50,000 82,887 32,887
Miscellaneous 29,800 1,105 (28,695)
Total revenues 1,279,800 1,226,529 (53,271)
Expenditures : Current:
Debt service:
General government 26,000 15,608 (10,392)
Interest and fiscal charges 1,354,737 1,343,652 (1 1,085)
Total expenditures 1,642,977 1,63 1,500 (1 1,477)
Excess (deficiency) of revenues over (under)
Principal retirement 262,240 272,240 10,000
expenditures $ (363,177) (404,97 1) (4 1,794)
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CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the purchase or construction of major capi 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 m
improvements.
Community Facilities District No. 1
To account for civic facilities, freeway interchanges, and road segments financed by Communi
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 Airport Road East Proiect
To account for funding and expenditures related to construction of Palomar Airport Road at Camino Real and east to San Marcos city limits. Funding is provided by the cities of S,
Marcos and Vista, San Diego County Airport, Sales Tax/TransNet, Traffic Impact fees, a
direct developer contributions.
Park Development
To account for receipts of fees charged to developers for park acquisition and development.
Planned Local Drainage Areas
To account for receipts of fees charged to developers for drainage facilities necessitated 1 growth.
Public Facilities Construction
To account for receipts of fees charged to developers for specific capital projects necessitated 1 growth.
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- Rancho Santa Fe Road Project
To account for receipts of fees charged to dlevelopers for Rancho Santa Fe Road construction an
improvements. A community facilities disrrict is proposed. 1 - Redevelopment Agency
To account for jinancial resources segregated for the rehabilitation of commerciial and publi
property and capiital projects located in the Carlsbad Village area.
- Sdes TadTransPJet
Tlo account for receipts of County sales taxes allocated by the San Diego County Regiona
Transportation Commission to finance transportation projects.
- State Grants
To account for capital projects financed by state grants.
- Traffic Impact Proi ects
To account for receipts of fees charged to developers for street construction and improvement,
105
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet
June 30,1997
Bridge and City and Community General
Assessment Thoroughfare County Facilities Federal Capital A
Districts Districts Agencies District No. 1 Grants Construction E
Assets
Cash and investments $1,741,877 3,994,868 2,919,511 23,566,971 2,652,034
Receivables:
Taxes 17,933
Accounts, net
Accrued interest 2,817
Due from other governments 74,693
Advances to other funds 1,700,000
Total assets $1,744,694 3,994,868 2,919,5 11 23,584,904 74,693 4,352,034
Liabilities and Fund Balances
Liabilities:
Accrued liabilities $ 1,708 42,169 2 15,325 762,192 266 18,56 1
Due to other funds 74,693
Advances from other funds
Estimated claims payable
Deferred revenue
Total liabilities 1,708 42,169 2 15,325 762,192 74,959 18,561 -
Fund balances (deficit):
Reserved for:
Advances to other funds 1,700,000
Encumbrances 131,434 15,499 1,210,509 355,777 108,269 291,626
Designated for approved
capital projects 997,7 10 29,6 19 74,325 5,066,866 1,9 12,725
Designated for continuing
appropriations
Undesignated 613,842 3,907,581 1,419,352 17,400,069 (108,535) 429,122 (
Unreserved:
Total fund
balances (deficit) 1,742,986 3,952,699 2,704,186 22,822,712 (266) 4,333,473
Total liabilities and
fund balances $1,744,694 3,994,868 2,919,5 11 23,584,904 74,693 4,352.034
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Planned Rancho
Local Public Santa Fe Traffic
Park Drainage Facilities Road Redevelopment Sales Tax/ State Impact I Development Falzilities Construction Project Agency TransNet Grants Projects :
7,761,192 4,4'79,721 14,638,201 11,320,140 2,669,586 1,672,530 179,428 3,141,447 80
3 IL 8,000 3,170
30,485
1
7,761,192 4J97,721 14,638,201 11,320,14J 2,703,241 1,672,530 179,428 3,141,447 a
-- - - --
- _.- --
I 47,391 171 15,925 50,197 57 66 32,666 1
2,550,000 950,000 750,000 4
- 3 18,000 -- 29,800 20,400 -
2,597,391 __ 3i18,OOO 950,171 15,5,25 79,997 57 ~ 66 971,066 3
168,000
1
149,771 289,4r52 45,145 365,610 34,420 31,764 3
3,449 1,l 19,475 1,989,562 2,514,714 1,238,665 1,306,863 144,942 2,138,617 18
26,000
E 5,163,801 wr9,721 13,688,030 11,304,215 2.623,244 1,672,473 179,362 2,170,381 76
7,761,192 =)7,721 14,638,201 11,320,140 2,703,241 1,672,530 179,428 3,141,447 a - -- ~- i
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CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Year Ended June 30, 1997
Bridge and City and Community General Palc
Assessment Thoroughfare County Facilities Federal Capital Airpor
Districts Districts Agencies District No. 1 Grants Construction w
Revenues:
Taxes $- 8,846,399
Intergovernmental 1,2 19,105 421,036 951,638
Charges for services
Interest income 89,328 176,627 140,946 1,089,112 150,492 2,
Contributions from property
owners 179,778 2,139,24 1 740,698
Miscellaneous 7,035 :
Total revenues 269,106 2,315,868 1,360,051 10,676.209 421,036 1,109.165 2
Expenditures:
Current:
General government 25,527 159,286 572,673 7,7'
Total expenditures 279,582 100,850 602,924 3,540,881 421,302 3,068,165 x
Capital outlay 254,055 100,850 602,924 3,381,595 421,302 2,495,492 -
Excess (deficiency) of
revenues over (under)
expenditures (10.476) 2,215,018 757.127 7,135,328 (266) (1,959,000) D
Other financing sources (uses):
Operating transfers in 1,89 1,420
Operating transfers out -
Total other financing
sources (uses) 1,891.420 :
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures
and other financing uses (10,476) 2,215,018 757,127 7,135,328 (266) (67,580) (7,5(
Fund balances at beginning of year 1,753,462 1,737,68 1 1,947,059 15,687,384 4,40 1,053 49,3'
Residual equity transfers in -
Fund balances at end of year $1,742,986 3.952,699 2,704,186 22,822,712 (266) 4,333,473 u -
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Local Public Santa Fe Traffic
Park Dlrainage Facilities Road Redevelopment Sales Tax/ State Impact
Development Facilities Construction Project Agency TransNet Grants Proiects 1
8,:
1,819,234 2,755,577 7, 1 17,02 1
387,485 229,625 705,804 504,373 136,498 94,345 30,985 162,250 3,:
1,324,334 633,879 3,912,683 5,580,660 939,588 15,~
-- ___- 10,34 1 -
1,711,819 -863,504 4,618,487 6,085,033 263,860 1,913,579 2,786.562 1,101,838 35,1
560,3 11 193
301,226 484 1,285,908 255,722 1,514,43 1 2,666,941 275,234 13,5
30 1,226 484 1,285,908 255,722 560,311 1,514,431 2,666,941 275,234 14,8
1,410,593 J163.020 3,332,579 5.829,m (296,451) 399,148 119,621 826,604 20,6
269,435 437,836 10,000 72,395 2,6
-- -- (269,435) (100,554) -12
-- 269,435 437,836 (269,435) (90,554) 72,395 2,3
1,410,593 863,020 3,332,579 6,098,746 141,385 129,713 29,067 898,999 22,9
3,753,208 3,616,701 10,355,451 5,205,469 2,478,448 1,542,760 150,295 1,271,382 53,9
3,411 -- ___-
5,163,801 4,479,721 13,688,030 11,304,215 2,623,244 1,672,473 179,362 2,170,381 76,s -- --
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R - EI\JTEWRISE FlJNDS
Enterprise Funds are used to account for operations that are financed and operated in a manne
siimilar to private business enterprises - where the intent of the governing body is that the costs o
providing goods or services to the general public be financed or recovered primarily through use
charges.
- Ciulsbad Municipal Water District
To account for the operation, maintenance, planning, capital facility financing, and all custome
service functions of the Carlsbad water system.
- Golf Course
To account for revenues, expenses and the construction activities of the City’s proposec municipal golf course.
1
U -- St:wer
To account for the operation, maintenance and capital facility financing of the City’s sewe
system.
- Solid Waste
To account for revenues and expenses of the City’s solid waste source-reduction and recyclinl
programs.
i dl 1
CITY OF CARLSBAD Enterprise Funds
Combining Balance Sheet
June 30, 1997
Carlsbad Municipal Golf Solid
Water District Course Sewer Waste Total Assets
Current assets: Cash and investments $25,723,941 2,338,190 29,726,095 1,067,094 58,855,. Receivables:
Taxes 8,174 33,359 41,: Accounts, net 3,173,050 3,173,( Due from other funds 126,753 126,' Due from other governments 86,087 1,611 143,037 230,' Inventory 123,766 7,860 131,t
Total current assets 29,115,018 2,338,190 29,862,319 1,243,490 62,559,(
Cash and investments 1,65 1,44 1 1,003,978 2,655,~ Accrued interest 29,776 29,:
Total restricted assets 1.65 1,441 1,033,754 2,685,l
Fixed assets 71,883,459 5,497,355 63,667,659 1,639 141,050,l Less accumulated depreciation (14,349,011) (14.655,980) (1,338) (29,006,:
301 112,043,; Fixed assets, net 57,534,448 5,497,355 49,011,679
Total assets $88,300,907 7,835,545 79,907,752 1,243,79 1 177,287,5
Restricted assets:
Liabilities and Fund Equity
Current liabilities:
Accrued liabilities $ 2,515,471 94,645 73,498 9,5 16 2,693, I Due to other funds 126,753 126,i
Estimated claims payable 32,000 32,C Current portion of long term debt 1,038,707 226,977 405,000 1,670,t Deposits payable 3 16,845 672,332 51 989,:
Total current liabilities 4,03 1,191 321,622 1,150,830 9,567 5,513,i
Current liabilities payable from restricted
assets - accrued interest payable 132,975 39,172 208,412 3802
Advances from other funds 1,765,200 1,765,2 Deferred revenue 2,070,778 2,070,5 Loan payable 1,998,520 1,998,5 Certificates of participation, net of
unamortized issuance costs of $2 13,680 7,006,320 7,006,3 Installment purchase agreement, net of unamortized discount and deferred
Accrued assessments 2,147,6 13 2,147,6
Total liabilities 13,169,006 4,273,607 13,009,596 9,567 30,461,5
Contributed capital 48,195,324 4,695,190 43,773,501 970 96.664,s Retained earnings:
Reserved for debt service 1,529,024 942,67 1 2,47 1,6 Unreserved 25,407,553 (1,133,252) 22,181.984 1,233,254 47,689,5
Total retained earnings 26,936,577 (1,133,252) 23,124.655 1,233,254 50,161,2
Total fund equity 75,13 1,90 1 336 1.938 66,898.156 1,234,224 146,826,2
Total liabilities and fund equity $88,300,907 7,835,545 79.907.752 1,243,79 1 177,287,9
Due to other governments 1,415 1,4
charges of $1,095,424 9,579,576 9,579,5
Fund equity:
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CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings
Year Ended June 30, 1997
Carl s bad
Municipal Golf Solid Water Dist& Course Sewer Waste Total
’Water sales $15,159,062 - - - 15,159,( - - - 5,086,b Sewer services charges 5,086,863 Other charges for services 688,840 76,676 168,2 1 1 93 3,7 Contributions from other government agencies 742,975 - - - 742,9 I IMiscellaneous 100,357 3,896 20,866 973,363 1.098.4
Total operating revenues 16.69 1,234 3,896 5,184,405 1,141,574 23,02 1,l
Operating revenues:
Operating expenses: Plant operations, 32,000 1,487,334 - 13 19,3 l’urchased water 8,95 1,926 - - - 8,95 1,9 - Depreciation 1,059,808 1,257,722 354 2,317,s General and adrninistrative 4,648,797 252,505 1,147,468 133,515 6,182,2
Total operating expenses 14,692,531 252,505 3,892,524 133,869 18,971,4
Operating iiicome (loss) 1,998,703 (248,609) 1.291,88 1 1,007,705 4,049,6
Nonoperating revenues (expenses):
Interest income 1,464,886 75,468 1,589,580 6,340 3,136,2 Interest expense and fees (709,300) - (708,480) - (1,417,7
(779 - - - 755,3‘ Gain (loss) on sale of property Property taxes 755,391 Miscellaneous iiicome (expense) - - - 131,339 131,3.
Amortization of issuance costs (26,710) - (26,7
- - (2 7 6 89) (572 19)
- - -
Total nonoperating
revenues (expenses) 1,48 1.578 75,468 875,881 137,679 2,570.6(
Net income (loss) 3,480,28 1 (1 73,141) 2,167,762 1 , 145,384 6,620,2,
Retained earning:; (deficit) at
Retained earnings (deficit) at end of year $26,936,577 - (1.1 33,252) 23,124,655 1,233,254 50,161.2
beginning of year 23,456,296 (960,111) 20,956,893 87,870 43,540.92
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CITY OF CARLSBAD Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 1997
Carlsbad Municipal Golf Solid Water District Course Sewer Waste
Cash flows from operating activities: Operating income (loss) $ 1,998,703 (248,609) 1,29 1,88 1 1,007,705 4,O
Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 1,059,808 1,257,722 354 2,3 (Increase) decrease in receivables 83,296 1,469 (1 3,902) (Increase) decrease in due from other governments (38,259) (1,611) (143,037) (1 (Increase) decrease in inventory 86,693 3,713 - Increase (decrease) in accrued liabilities 286,136 90,866 5,408 (10,133) 3'
249,493 3 Increase (decrease) in due to other governments
Increase (decrease) in deposits payable
Increase (decrease) in estimated claims payable (76,200) t Increase (decrease) in loan payable (95,925) -A
(1,155) 79,603
Net cash provided by (used for) operating activities 3,382,700 (157,743) 2,808,075 840,987 6,8
Cash flows from noncapital financing activities: Cash received from other funds 11 1,467 525,688 970 6
Cash paid to other funds (1 1.083) -A
Net cash provided by (used for) noncapital 514,605 - financing activities 1 1 1,467 970 6
Cash flows from capital and related financing activities: Purchases of fixed assets (2,596,4 15) (1 84;225) (4 12,846) - (3,1
Reduction of principal (880,000) (1,52 1,7 16) - (2,4
Interest and other fees paid (723,584) (3,3 18) (829,353) - (1s Debt service assessments 755,391 7 Capital contributions received 2,214,961 470,000 2,011,410 131,339 4,s
Proceeds of advances 1,765,200 177
Capital assessments paid (21 1,199) -12
Net cash provided by (used for) capital and related financing activities (1,229,647) 1,836,458 (752,505) 131,339 A'
Cash flows from investing activities: Investment in restricted assets 98 1,520 2,116,970 7,971 3,l
Interest on investments 1,769,733 93,940 1,892,700 3,i
Net cash provided by (used for) investing activities 2,75 1,253 93.940 4,009,670 7,971 6,F
Net increase (decrease) in cash and cash equivalents 5,015,773 1,772,655 6,579,845 981,267 14,?
Cash and cash equivalents at beginning of year 21,405,903 565,535 24,150.228 85,827 a
$26,421,676 2,338,190 30,730.073 1,067,094 a Cash and cash equivalents at end of year
Supplemental schedule of noncash investing and financing activities:
-
Capital assets contributed by (to) other funds $ 1,17 1,224 340,593 1,2
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8 - INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by on department or agency of a government to other departments or agencies on a cost reimbursemer
- Iriformation Systems
To account for charges to other funds for information system services.
- IF leet Managemela
To account for charges to other funds to provide fleet maintenance and accumulate funds for flee
replacement.
- General Liability Self-Insurance
To account for charges to other funds to insure for liability claims against the City.
- lH ealth Insurance
To account for charges to other hnds and from employees to provide health insurance for full
time City employees.
I basis.
D
I - Workers’ Compensation
To account for charges to other funds to insure against Workers’ Compensation claims.
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CITY OF CARLSBAD Internal Service Funds
Combining Balance Sheet
June 30, 1997
General Liability
Information Fleet Self- Health Workers' Systems Management Insurance Insurance Compensation 3
Assets '
Current assets:
Cash and investments $ 772,245 3,901,371 2,719,660 435,487 1,852,942 9,C
Receivables:
Inventory 87,470
Accounts, net - 7,427 - - - - - - -
Total current assets 772,245 3,996,268 2,719,660 435.487 1,852,942 9,;
Fixed assets: - - - Equipment and vehicles 2,111,502 6,674,693 8,;
depreciation (934,420) (3,173,850) - -&I
Fixed assets, net 1,177,082 3,500,843 4,c
Less accumulated
- - -
Total assets $1,949,327 7,497,111 2,719,660 435,487 1,852,942 14,4
Liabilities and Fund Equity
Current liabilities:
Accrued liabilities $ 67,969 84,665 16,863 1 1,747 12,456 1 Estimated claims payable 258,819 291.000 762,892 1,3
Total current liabilities 67,969 84,665 275,682 302.747 775,348 2
- -
Fund equity:
Contributed capital -
contributed from
Retained earnings - other funds 131 1,146 3,124,964 1,911,939 - 752,600 7,:
Unreserved 370,212 4,287,482 532,039 132,740 324,994 2
Total fund equity 1,881.358 7,412,446 2,443,978 132,740 1,077,594 12,!
Total liabilities and fund equity $1,949,327 7,497,111 2,719,660 435.487 1,852,942 14,~
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CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 1997
General Liability
Systems Management Insurance Insurance Compensation Information Fleet Self- Health Workers’
0 perating revenues : Other charges for services $1,199,150 2,335,897 928,851 1,598,252 614,970 t IIvliscellaneous 3,158 73,614 358 330,464 828 -
Total operating revenues 1,202,308 2,4093 1 1 929,209 1,928,716 615,798 r
Operating expens,es:
Depreciation 294,142 833,321 I
Claims expense - - 8 19,339 2,169,937 706,310 C
General and administrative 862,279 1,020,914 55,136 - 77,644 2
- - -
Fuel and supplies 14,729 327,339 - - -
Total operating expenses 1,17 1,150 2,18 1,574 874,475 2,169,937 783,954 2
Operating income (loss) 31,158 227,937 54,734 (241,221) (168.156) -
Nonoperating revenues (expenses):
Interest income 35,953 198,367 155,461 75,323 102,223 Gain (loss) on sale of property - 85,626 - -
Gain (loss) on disposal of
assets (1,902) (29,863)
-
Total nonopeirating
Income (loss) before operating transfers 65,209 482,067 210,195 (165,898) (65,933)
D revenues (expenses) 34,051 254,130 155,461 75.323 102,223 -
Operating transfers in 4,680 - - - -
Operating transfers out (1 0,000) - - - -
Net income (1 oss) 59,889 482,067 2 10,195 (1 65,898) (65,933)
Retained earnings at
beginning of year 310,323 3,805,415 321,844 1,298,638 390,927 t
- - Residual equity transfer out - (1,000,000) - (1
Retained earnings at end of year $ 370,212 4,287,482 532,039 132,740 324,994 I
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CITY OF CARLSBAD Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30, 1997
General Liability Information Fleet Self- Health Workers’ Systems Management Insurance Insurance Compensation
Cash flows from operating activities: Operating income (loss) $ 31,158 227,937 54,734 (241,221) (168,156)
Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 294,142 833,321
(Increase) decrease in prepaid
(Increase) decrease in inventory 1,166
Increase (decrease) in accrued
Increase (decrease) in estimated claims payable (522,729) 28,000 86,197 -
(Increase) decrease in receivables (3,953)
expenses 22,854
liabilities (3 1,085) (9,990) (23,616) 1,362 (3,795)
Net cash provided by (used for) operating activities 294,215 1,048,481 (491,611) (189,005) (85,754) -
Cash flows from noncapital financing activities: Cash received from other funds 16,885 1 1,922 1,939 2,600
Cash paid to other finds (10,000) (1,000,000) L!
Net cash provided by (used for) noncapital financing activities 6,885 11,922 1,939 (1,000,000) 2,600 -
Cash flows from capital and related financing activities:
Cash flows from investing activities:
Net increase (decrease) in cash and cash equivalents 237,892 146,411 (298,455) (1,089,193) 45,674
Purchases of fixed assets (107,298) (1,172,942) L!
Interest on investments 44,090 258,950 191,217 99,812 128,828 -
Cash and cash equivalents at beginning of year 534.353 3,754,960 3,018,115 1,524,680 1307,268 IC
Cash and cash equivalents at end of year
Supplemental schedule of noncash investing and financing activities: Capital assets contributed by (to) other funds $ 80,836 40,288
$772,245 3,901,371 2,719,660 435,487 1.852,942 2 -
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Agency Funds are used to account for assets held by a government for other funds, governmen1 or individuals.
- Deferred Compensation
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 othe miscellaneous deposits.
II
I - Assessment Districts
I not obligated.
To account for the debt service transactions on assessment district bonds for which the City i
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CITY OF CARLSBAD Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year Ended June 30, 1997
Balances at Balance
July 1, 1996 Additions Reductions June 30, 1
Deferred Compensation:
Assets:
Liabilities:
Deferred compensation investments $1 0,114,964 2.404,109 [9,482,738) 3,036,3
Deferred compensation payable $10.1 14,964 2,404,109 (9,482,738) 3,036,3
Contractors’ and Miscellaneous Deposits: Assets: Cash and investments $ 6,472,341 19,43 1,56 1 (1 7,740,997) 8,162,91
Accounts receivable 725 - (725) - Accrued interest 84,633 - (84,633) -
Total assets $ 6,557,699 19.43 1.561 (1 7,826.355) 8,1629
Liabilities: Accrued interest payable $ 895,437 399,259 (1 99,718) 1,0949 Deposits payable 5,662,262 19,063,412 (1 7,657,747) 7,067.9:
Total liabilities $ 6,557,699 19,462,671 (1 7,857,465) 8,1629
Assessment Districts: Assets: Cash and investments $ 4,501,678 3,447,337 (3,3 13,633) 4,635,3;
Accrued interest 48,157 24,9 16 (48,157) 24,9
Total assets $ 4,589,367 3.476,219 (3,401,322) 4,664,2(
Due to bondholders $ 4,589,367 3,544,012 (3,469,115) 4,664,2(
Taxes receivable 39,532 3,966 (39,532) 3,9(
Liabilities:
Totals - All Agency Funds:
Assets: Cash and investments $10,974,019 22,878,898 (2 1,054,630) 12,798,2/ Deferred compensation investments 10,114,964 2,404,109 (9,482,738) 3,036,3.
3,9( Taxes receivable 39,532 3,966 (39,532)
Accrued interest 132,790 24,916 (132,790) 24,9
Total assets $21,262,030 25,311,889 (30,710,415) 15,863,5(
Accrued interest payable $ 895,437 399,259 (1 99,718) 1,0949 Due to bondholders 4,589,367 3,544,012 (3,469,115) 4,664,21 Deposits payable 5,662,262 19,063,412 (1 7,657,747) 7,067,9: Deferred compensation payable 10,114.964 2,404,109 (9.482,738) 3,036,3
Total liabilities $21.262.030 25,410,792 (30,809,318) 15,863.51
- - Accounts receivable 725 (725)
Liabilities:
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I - GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those fixed assets used in operations accounted for in governmene fimds. General fixed assets include all fixed assets not accounted for in an enterprise, intern2 service, or trust and agency fund.
127
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Function
June 30, 1997
General Culture and Public Public Government Recreation Safety Works Totals
Land $3,157,228 21,993,646 2,150,407 740,763 28,042,041
Buildings 3,019,460 10,667,639 13,996,610 27 , 68 3,70!
Improvements 887,290 2,387,899 474,456 342,010 4,09 1,65:
Furniture and equipment 509,243 1,021,441 1,856,725 493,524 3,880,93:
Construction in progress - 6,108.483 - - 6.108,48:
Totals $7,573,221 42,179,108 18,478,198 1,576,297 69.806,82~
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CITY OF CARLSBAD General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function
Year Ended June 30,1997
General Fixed General Fi)c
Assets at Assets at
July 1, 19% Additions Deductions June 30, 195
General governmient $ 7,695,198 305,305 (427,282) 7,573,22
Culture and recreation 40,83 8,3 98 2,166,649 (825,939) 42,179,101
Public safety 18,384,332 278,125 (1 84,259) 1 8,478,191
1.576,29’ Public works 1,568,601 22,622
$68,486,535 2,772,701 (1,452,412) 69,806,821
(14,932)
- Totals
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CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Source
June 30,1997
As of June 30,1986 $27,136,537
Net additions subsequent to June 30, 1986: General 13,458,488 Community development block grants 2,912,726 Federal grants 509,124 State grants 853, I7 1 Street lighting 327,15 1 Park development 9,717,586
Public facilities 10,612,535
Redevelopment 4,279,504
$69,806,824 Total investments in general fixed assets
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8 - ANNUAL DEB?’ SERVICE REQUIREMENTS
The following schedules present principal and interest debt service requirements for the City’
debt.
131
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements
$15,495.000 - 1993 CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION TAX ALLOCATION BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Am September 1 March 1 Interest September 1 Debt Ser
1997-98 $ 394,808 387,851 782,659 265,000 1,047,6: 1998-99 387,85 1 3 8030 1 768,352 280,000 1,048,31 1999-2000 380,501 372,889 753,390 290,000 1,043,3! 2000-0 1 372,889 364,882 737,771 305,000 1,042,7'
2001-02 364,883 356,351 721,234 325,000 1,046,2:
2002-03 356,35 1 347,426 703,777 340,000 1,043,7' 2003-04 347,426 337,977 6 8 5,403 360,000 1,045,4(
2004-05 337,976 328,001 665,977 380,000 1,045,9'
2005-06 328,001 317,633 645,634 395,000 1,040,6:
3 17,633 306,607 624,240 420,000 1,044,21 2007-08 306,607 295,058 60 1,665 440,000 1,04 1,6t
2 0 0 8 - 0 9 29 5 ,O 5 8 282,85 1 577,909 465,000 1,042,9(
2009- 10 282,s 1 269,989 552,840 490,000 1,042,s~
2010-1 1 269,989 256,470 526,459 5 15,000 1,04 1,4:
201 1-12 256,470 242,295 498,765 540,000 1,03 8,7t
2012-1 3 242,295 227,332 469,627 570,000 1,039,6:
201 3-14 227,332 21 1,583 438,915 600,000 1,038,9'
2014-1 5 21 1,583 195,045 406,628 630,000 1,036,6: 2015-16 195,045 177,589 372,634 665,000 1,037,6: 20 16-1 7 1773 89 159,213 336,802 700,000 1,036,8( 201 7-1 8 159,2 14 139,920 299,134 735,000 1,034,l: 2018-19 139,920 119,576 259,496 775,000 1,034,4! 20 19-20 1 19,576 98,183 21 7,759 8 15,000 1,032,7: 2020-2 1 98,182 75,525 173,707 855,000 1,028,7( 202 1-22 75,525 5 1,675 127,200 900,000 1,027,2( 2022-23 5 1,675 26,500 78,175 950,000 1,028,l: 2023-24 26,500 - 26,500 1,000,000 1,0263
Year
2006-07
Totals $6,723,730 6,328,922 13,052,652 15.005,OOO 28,057,61
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Schedule of Annual Debt Service Requirements, (Continued)
$9,570,250 - COLLEGE BOULEVARD ASSESSMENT DISTRICT BONDS
Fiscal Interest Due Interest Due Total Principal Due Total Ann Year September 2 March 2 Interest September 2 Debt Serv
1997-98 $ 245,705 229,430 475,135 420,000 895,13.
1998-99 229,430 211,685 441,115 45 5,000 896,ll 1999-2000 21 1,685 1 92,133 403,818 495,000 898,s 1 I 21300-0 1 192,133 171,000 363,133 535,000 898,13.
2130 1-02 171,000 147,800 3 18,800 580,000 898,80(
2 002-03 147,800 122,800 270,600 625,000 895,60(
2 003-04 122,800 95,600 2 18,400 680,000 898,40(
21304-05 95,600 66,200 161,800 735,000 896,SOC
21305 -06 66,200 34,400 100,600 795,000 895,60(
21306-07 34,400 - 34,400 860,000 894,40(
'Totals $15 16,753 1,271,048 2,787,801 6,180,000 8,967,801
$8,690,000 - 1988 HOSP GROVE CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total Annu Year August 1 February 1 Interest August 1 Debt Servic
1'997-98 $ 259,205 24 6, '7 8 0 505,985 355,000 860,985 1'398-99 246,780 233, IO0 479,880 380,000 859,880 1'399-2000 233,100 2 17,930 45 1,030 41 0,000 861,030
2000-0 1 217,930 20 1,400 419,330 435,000 854,330 200 1-02 20 1,400 182,600 384,000 470,000 854,000
2002-03 182,600 162,200 344,800 5 10,000 854,800
2003-04 162,200 140,000 302,200 5 5 5,000 857,200
2004-05 140,000 1 16,000 256,000 600,000 856,000 2005-06 1 16,000 90,400 206,400 640,000 846,400
2006-07 90,400 62,600 153,000 695,000 848,000
2007-08 62,600 32,600 95,200 750,000 845,200 - 32,600 8 15,000 847.600 2008-09 32,600 --
'To tal s $1,944,8 15 1,685,610 3,630.425 6,6 1 5.000 10.245,425 ~-
133
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 An Year August 1 February 1 Interest August I Debt SeI
1997-98 $ 40,379 35,819 76,198 1 15,000 191,1
1998-99 35,819 30,770 66,589 125,000 191,5
1999-2000 30,770 25,49 1 56,26 1 130,000 186,2
2000-0 1 25,49 1 19,787 45,278 140,000 185,2 200 1-02 19,787 13,621 33,408 150,000 183,4 2002-03 13,621 7,030 20,65 1 160,000 180,6 2003-04 7,030 - 7,030 169,950 176,9
Totals $172,897 132,518 305,415 989,950 1,295,31
$14,370,000 - 1988 CARLSBAD MUNICIPAL WATER DISTRICT CERTIFICATES OF PARTICIPATION
Fiscal Interest Due Interest Due Total Principal Due Total An Year November I May 1 Interest May 1 Debt Sei
1997-98 $ 292,491 292,49 1 584,982 940,000 1,524,9 1998-99 260,061 260,061 520,122 1,005,000 1,525,l
1999-2000 224,886 224,886 449,772 1,075,000 1,524,7 2000-0 1 186,724 186,724 3 73,448 1,155,000 1,528,4 1,525,2 200 1-02 145,144 145,144 290,288 1,235,000 2002-03 100,375 100,375 200,750 1,325,000 1,525,7 2003-04 52,012 52,O 12 104.024 1,425,000 1,529.0
Totals $1,26 1,693 1,26 1,693 2,523,386 8.1 60,000 10.683,3
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8 CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$1 1.080,OOO - ENCINA FINANCING JOINT POWERS AUTHORITY INSTALLMENT PURCHASE AGREEMENT
Fiscal Interest Due Interest Due Total Principal Due Total Ann1 August 1 February 1 Interest August 1 Debt Serv
1'397-98 $ 250,093 263,086 513,179 405,000 91 8,17' 1'398-99 263,086 254,585 5 17,671 425,000 942,67 1'399-2000 254,586 245,785 500,371 440,000 940,37 2000-0 1 245,786 236,240 482,026 460,000 942,02t 200 1-02 236,241 225,920 462,161 4 8 0 , 0 0 0 942,16 : 2002-03 225,921 2 15,278 441 ,I 99 495,000 936,195 2003-04 215,278 2 0 0 , 9 7 8 4 16,256 520,000 936,23 2004-05 2 0 0,9 7 8 188,603 389,581 550,000 939,581
2007-08 156,153 139,353 295,506 640,000 935,50t 2008-09 139,353 122,8 16 262,169 675,000 937,165 2009- 10 1223 16 io5,n9i 228,007 705,000 933,OO; 2010-1 1 105,191 86,228 191,419 740,000 93 1,415 201 1-12 86,228 66,241 152,469 780,000 932,465 2012- 13 66,241 45,228 11 1,469 820,000 93 1,465
23,191 68,4 19 860,000 928,4 1 S 201 3- 14 45,228
201 4-1 5 23,190 23,190 905,000 928,19(
1 1,080,000 16,825,43(
Year
2005-06 188,603 172,79 1 361,394 575,000 936,39f 2006-07 172,79 1 156,153 328,944 605,000 933,94f
-
Totals $2,997,763 2,747,667 5,745.43 0
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CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$2.33 1,489 - CARLSBAD MUNICIPAL WATER DISTRTCT
STATE LOAN FOR RECLAIMED WATER PROJECTS
Principal Due Total Annt Fiscal Interest Due Year November 30 November 30 Debt Servi
1997-98 $ 60,820 98;707 159,525
1998-99 57,957 101,570 159,527 1999-2000 55,012 104,5 15 159,527
2000-01 51,981 107,546 159,527 2001 -02 48,862 1 10,665 159,527
2002-03 45,653 113,874 159,52; 2003-04 42,350 117,177 159,52;
2004-05 38,952 120,575 159,52;
2005-06 35,455 124,072 159,52; 2006-07 3 1,857 127,670 159,52; 2007-08 28,155 13 1,372 15932; 2008-09 24,345 135,182 15932; 2009- 10 20,425 139,102 159,52;
2010-1 I 16,391 143,136 15932;
201 1-12 12,240 147,287 159,527 2012-1 3 7,969 15 1,558 159,527
2013-14 2,680 123,219 125,895
Totals $58 1,104 2,097,227 2,678,33 1
$2,78 1,3 17 GOLF COURSE ACCRUED ASSESSMENT
Fiscal Total A~L Year Interest Principal Debt Servi
1997-98 $1 88,025 2 2 6,9 7 7 415,001 1998-99 170,716 245,594 416,3 1( 1999-2000 15 1,588 265,578 41 7,16t 2000-01 130,770 287,034 417,801 200 1-02 107,953 309,858 41731; 2002-03 83,164 335,627 418,79: 2003-04 56,314 2 16,478 272,792 2004-05 38,995 234,150 273,14: 2005-06 20.264 253,294 273.551
Totals $947.789 2,374,590 3.322,3 7!
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CITY OF CARLSBAD
General Expenditures by Function
Last Ten Fiscal Years
Fiscal General Public Cornrn. Housing Library & Comrn. Capital DI
Year Total(’) %Safety Devel. & Welfare the Arts Services Prolects Ser
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
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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
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,
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,
1991-92 53,985.1 19 5,884,582 15,989,114 7,323,586 2,385,384 3,090,540 9,697,220 5,639,898 3,974,
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,
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,
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,
1995-96 59,802,924 5,850,829 16,850,087 6,777,986 3,957,791 3,229,738 9,944,799 9,654,082 3,557,
1996-97 65,943,032 6,961,469 17,410,033 7,595,529 3,694,803 3,365,178 9,982,805 13,556,164 3,377,
(I) Includes General, Special Revenue, Debt Service and Capital Projects Funds.
GENERAL EXPENDITURES BY FUNCTION
1996-97
DEBT SERMCE
5% GENERA GOVERNMENT
WlTk PROJECTS 20%
PUBLIC WETY 26% LIBMY/CULTURE
5%
WUSINGA%€LFPRE 6%
COMMUNITY SEWCES 15% COMMUNITY DMLOPMENl
12%
Source: City of Carlsbad Comprehensive Annual Financial Reports
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TOTAL EXPENDITURES 1 LAST TEN YEARS
Dollars in millions
$80
$70
$60
$50
$40
$30
$10
Fiscal Year
SPENDING ON CAPITAL PROJECTS I LAST TEN YEARS
Dollars in millions
$30
$25
$20 I $15
$10
$5
$0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Fiscal Year
139
CITY OF CARLSBAD
General Revenues by Source
Last Ten Fiscal Years
Transient
Fiscal Property Sales Occupancy Other Busi
Lice
1987-88 42,944,962 8,882,813 7,128,461 1,995,447 4,205,570 61E
1988-89 54,565,025 11,012,396 8,186,215 2,752,025 3,648,826 69E
1989-90 57,970,453 12,677,817 9,342,077 3,630,662 4,114,856 79 1
1990-91 77,371,107 14,007,364 9,426,111 3,310,043 3,691,387 832
Year Total'') Taxes Taxes Taxes Taxes -
1991-92 58,440,436 15,132,124 8,723,382 3,077,595 5,153,213 91 c
1992-93 58,115,465 1 5,332,036 9,167,849 3,098,793 3,408,805 1,071
1993-94 62,239,740 13,920,220 10,840,115 3,153,084 4,124,250 1,093
1994-95 69,768,517 13,537,893 11,399,568 3,252,270 8,434,825 1,245
1995-96 74,611,395 13,576,407 11,542,970 3,406,917 8,621.71 7 1,491
1996-97 98,645,130 14,516,474 12,495,143 3,675,472 10,824,890 I ,510
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(2)
Includes General, Special Revenue, Debt Service and Capital Projects Funds.
Includes interdepartmental services category added in 1991 -92 and miscellaneous
revenues.
GENERAL REVENUE
LAST TEN YEARS
PROPERTY TAX AND SALES TAX RE
LAST TEN YEARS
Dollars in millions Dollars in millions
$100 SI6
$90 $14
$80 $1 2
$70 $10
$60 sa
$50 66
$40 $4
$30 $2
$20 so $10
$0 Fiscal Year
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
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Contributions
Other I ntergov- Charges for Fines and From Property
Licenses ernmental Services Forfeits Interest Owners Other”
3,521,242 2,506,690 8,770,867 435,649 3,422,839 175,593 1,283,51
3,858,173 2,876,536 7,722,568 478,830 5,644,873 4,529,710 3,158,16
4,058,540 3,267,054 10,728,326 51 1,890 6,002,986 402,292 2,442,25
3,550,013 5,405,074 10,701,989 515,746 5,737,513 16,515,962 3,677,47
7,759,224 312,984 4,826,292 446,813 2,703,15’ 3,307,980 6,087,138
3,355,533 7,107,385 5,725,597 231,877 4,866,36 1 380,389 4,369,49
3,590,927 8,019,308 9,181,814 231,454 3,996,127 344,851 3,743,76
3,766,340 7,590,323 9,819,230 263,411 4,415,975 2,148,548 3,894,304
4,178,844 6,426,262 6,805,386 335,395 4,862,050 9,359,802 4,004,48( I 5,609,730 11,764,760 10,707,653 31 7,892 6,075,188 15,450,861 5,696,60!
TRANSIENT OCCUPANCY TAX
LAST TEN YEARS
CHARGES FOR SERVICES
LAST TEN YEARS
Dollars in millions Dollars in millions
$4.5 $1 2
$4.0
$8 $3.0
$2.5
$2.0 $6
$4 $1.5
$1.0
$0.5 $2
$0 1988 1989 1990 I991 1992 1993 1994 1995 1996 1997 Fiscal Year Fiscal Year
141
CITY OF CARLSBAD
Ratio of General Bonded Debt to Assessed Valuation
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Percent of
Net Assessed 0 u ts tand i ng Total Per Capita Fiscal Year Valuation(’) P rin ci pa 1(2) Valuation Debt POPUl<
1987-88 3,939,249,294 550,000 0.01 9 58,
I 988-89 4,203,469,146 420,000 0.01 7 62,1
1989-90 4,850,671,236 285,000 0.01 4 63,
1990-91 5,474,063,206 150,000 2 64,
1991 -92 5,909,991,722 65,.
1992-93 6,066,896,498 66,d
1993-94 5,998,436,686 - 66,(
1994-95 5,824,971,165 66,4
1995-96 5,841,695,579 68,(
1996-97 6,005,069,504 70,(
(I) Net assessed value is stated at 100% of market value. Data from County of
San Diego Office of the Auditor and Controller.
(*) Library and sewer general obligation bonds per the City of Carlsbad
Comprehensive Annual Financial Reports.
Population as of January 1 of each year per the State Department of Finance. (3)
GENERAL BONDED DEBT PER CAPITA
LAST TEN YEARS
DEBT IN DOLLARS
$9
$8
$7
$6
$5
$4
$3
$2
$1
$0
1988 1989 I990 1991 1992 1993 1994 1995 I996 1997
Fiscal Year
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Computation of Legal Debt Margin
June 30, 1997
Net assessed valuation $6,005,069,5C
Debt limit (15% of 25% of net assessed valuation as adjusted)
Amount of debt applicable to debt limit:
225,190,lO
Bonded debt'') 2 1 , 185,OO
Certificates of participation 6,615,OO
Obligations under capital leases 112,81
Total amount of debt applicable to debt limit 27,912,81
Legal debt margin $ 197,277,28
Percent of debt limit 14O1
(') Total bonded debt:
College Boulevard Assessment District $ 6,180,00(
Tax Allocation Bonds 15,005,00(
Total bonded debt $ 21,185,00(
143
CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
June 30,1997
1996-97 Assessed Valuation: $6,005,069,504 (after deducting $1 35,106,23 1 redevelopment increme
Deb
% June C
199’
valuation)
DIRECT AND OVERLAPPING BONDED DEBT: ApDlicable -
San Diego County Water Authority 4.619 % $ 4E
Metropolitan Water District 0.720 4,17
Encinitas Union School District 22.487
Palomar Pomerado Hospital District 0.533
Leucadia County Water District and I.D. No. 1 50.176 & 4.336 C
City of Carlsbad 191 5 Act Bonds 100.000 23,3t
Carlsbad Unified School District Community Facilities District #I 100.000 11,6”
Tri-City Hospital District 32.540 1L
Olivenhain Municipal Water District, I.D. No. 1 28.786 1:
TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT‘’) $ 39,92
(1) 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 ($6,180,000) ......................................................... 0.10%
Total Gross Debt ................................................................... 0.67%
SHARE OF AUTHORIZED AND UNSOLD GENERAL OBLIGATION BONDS:
Metropolitan Water District ....................................................... $ 359,816
Carlsbad Unified School District, CFD No. 3 ................................ 110,000,000
Source: HdL Coren & Cone, San Diego County Assessor Combined
1996/1997 Lien Date Tax Rolls, County of San Diego/Office
of Auditor & Controller
144
m u CITY OF CARLSBAD
1 Ratio of Annual Debt Service for
General Bonded Debt to Total Governmental Expenditures
Last Ten Fiscal Years
Ratio of Dc
Total Total Service ti
Fiscal Debt Governmental Governmer Year Principal Interest Service") Expenditures'') Expenditur
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1987-88 120,000 23,179 143,179 41,960,153 0.3
1988-89 130,000 18,556 148,556 55,745,009 0.3
1989-90 135,000 13,728 148,728 53,133,603 0.3
1990-91 135,000 8,652 143,652 72,999,324 0.2
1991-92 150,000 3,908 153,908 53,985,119 0.3
1992-93 - 55,104,390 -
1993-94 62,668,276
1994-95 - 60,280,103
1995-96 59,802,924
1996-97 - - 65,943,032 -
(I) Debt service requirement on General Obligation Bonds comprised of 1962 Sewer Bonds
Series B and C and 1966 Library Bonds. Excludes debt service for the Assessment
District and the Building and Parking Authorities. I
(2) Includes General, Special Revenue, Debt Service and Capital Project funds.
RATIO OF DEBT SERVICE TO GENERAL EXPENDITURES
LAST TEN YEARS
RATIO IN %
..............................
............................
..........................
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
145
CITY OF CARLSBAD
Water Enterprise
Revenue Bond Coverage
Last Ten Fiscal Years
Net Revenue
Direct Available Fiscal Gross Operating For Debt Debt Service Requirements
Year Revenue'') Expenses(*) Service Principal Interest - Total Cove
1987-88 1,637,819 1,334,525 303,294 150,000 29,096 179,096 1 .I
1988-89 1,760,102 1,195,822 564,280 157,000 21,211 178,211 3.
1989-90 2,001,832 1,415,542 586,290 160,000 12,718 172,718 3.:
1990-91(3) 11,398,343 9,172,478 2,225,865 775,000 1,088,386 1,863,386 1.
1991-92 11,504,798 9,520,564 1,984,234 685,000 842,538 1,527,538 1 .;
1992-93 12,267,854 1 1,421,571 846,283 730,000 798,696 1,528,696 O.!
1993-94 15,188,913 12,286,557 2,902,356 775,000 751,248 1,526,248 1 .$
1994-95 15,912,020 12,690,114 3,221,906 825,000 700,098 1,525,098 2.1
1995-96 17,147,790 13,998,346 3,149,444 880,000 644,822 1,524,822 2.c
1996-97 18,911,511 14,692,531 4,218,980 940,000 584,982 1,524,982 2.7
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(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
$20
$15
$5
$0
Fiscal Year
WGROSS REVENUE
110 P E RAT ING E X P E NS E S
WATER ENTERPRISE
NET REVENUE AVAILABLE FOR DEBT SERVICE I LAST TEN YEARS
Dollars in millions
$4.5
$4.0
$3.5
$3.0
$2.5
$2.0
$1.5
$1 .o
$0.5
$0.0
94 1995 1996 1997
Fiscal Year
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CITY OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Fiscal Year Secured Property Unsecured Property Less Property Exemp
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 1 82,042,779 25,387,503
1991 -92 5,823,039,810 205,094,66 1 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 5,673,354,8 14 288,206,831 40,417,338
1995-96 5,676,061,219 3 1 0,402,764 46,279,594
1996-97 5,811,751,594 348,706,124 55,138,448
(') 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
Assessed Valuation(’) Exemptions Valuation Chanqe
$ 4,014,899,694 $ 75,650,400 $ 3,939,249,294 14 1%
4,287,316,546 83,847,400 4,203,469,146 67
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
6,000,7 1 9,836 90,728,114 5,909,991,722 80
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)
5,921,144,307 96,173,142 5,824,971,165 (2 9)
5,940,184,389 98,488,810 5,841,695,579 03
6,105,319,270 100,249,766 6,005,069,504 28
NET TAXABLE VALUE
LAST TEN YEARS
Dollars in billions
$7 8 $6
$5
$4
$3
$2
$1
$0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Fiscal Year
149
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Building Business
Fiscal Permit Percent Estimated License Perce
Year Revenue Change Va I u a t ion Revenue - Chanc
1987-88 671,779 (45.4) 127,831,606 616,278 19.
1988-89 674,814 .5 1 11,898,109 696,706 13.
1989-90 1,029,750 52.6 169,746,343 791,715 13.
1990-91 857,717 (16.7) 163,340,462 832,432 5.
1991 -92 21 9,445 (74.4) 42,351,906 910,532 9.
1992-93 234,063 6.7 49,809,414 1,071,342 17.
1993-94 365,57 1 56.1 71,057,243 1,093,827 2.
1994-95 644,131 76.2 145,344,099 1,245,830 13.
1995-96 917,788 42.4 162,116,427 1,491,159 19.
1996-97 1,262,177 37.6 305,247,426 131 0,462 1.
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
Dollars in millions
$350
$300
$250
$200
$1 50
$1 00
$50
$0 1988 1989 1990 1991 I992 1993 1994 1995 1996 1997
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
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Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Total Total Current % of Levy
Year Current Levy Collections Collected
1987-88 9,368,469 8,733,089 93.2
1988-89 10,928,048 10,237,929 93.7
1989-90 12,600,253 11,816,888 93.8
1990-91 13,931,230 12,986,628 93.2
1991 -92 14,932,937 13,795,525 92.4
1992-93 13,990,844 12,776,232 91.3
1993-94 12,373,782 11,318,017 91.5
1994-95 11,977,833 10,843,322 90.5
1995-96 1 1,891,199 11,164,134 93.9
1996-97 12,227,583 11,551,981 94.5
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS
Dollars in millions
$1 6
$14
SI2
$4 0
$8
$6
$4
$2
$0 I Fiscal Year
B Source: County of San Diego Office of the Auditor and Controller
$51
CITY OF CARLSBAD
Special Assessment Billings and Collections
College Boulevard Assessment District
Last Ten Fiscal Years
Fiscal Special Assessment Special Assessments
Year Billings Collected
1988 988,116 987,689
985,207 1989 984,780
1990 985,680 985,680
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(’)
1996 887,687 877,580
1997 886,654 896,76 1
(1) Includes delinquent collections of $606,089.
Source: City of Carlsbad Comprehensive Annual Financial Reports
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Demographic Statistics
Last Ten Fiscal Years
city
Population Population
Square Percent County Percent - Year Miles Population") Chanqe Population(*) of County
1988 39 7 58,888 65 2,327,657 25
1989 39 7 62,030 53 2,4 1 8,176 26
1990 42 2 63,126 18 2,498,016 03
1991 42 2 64,120 16 2,539,583 17
1992 42 2 65,331 19 2,583,470 17
1993 42 2 66,481 18 2,614,222 12
1994 42 2 66,652 09 2,638,511 14
1995 42 2 66,479 (0 2) 2,658,584 08
1996 42 2 68,010 23 2,682,093 09
1997 42 2 70,099 31 2,724,437 16 I 2000 (Estimate) 74, 623(3) 3,002,l 62(4) 29
2005 (Estimate) 83, 859(3) 3,2 78, 885(4) 32
1 Source - State Department of Finance
2. Source - County Data Base, San Diego County
3 Source - based on City of Carlsbad projected residential construction estimates in
1997-98 Capital Improvement Program
4. Source - San Diego Association of Governments Series VI11 growth forecast 1
POPULATION I LAST TEN YEARS
72,000
70,000
68,000
66,000
64,000
62,000
60,000
58,000
56,000
54,000
52,000
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CITY OF CARLSBAD
Principal Employers
1996- 1997
FIRM PRODUCT/SERVICE EMPLOYE
Manufacturing:
Callaway Golf Golf Equipment 2,:
Cobra Golf, Inc. I1 Golf Equipment 1 ,'
Nellcor Puritan Bennett Corporation Medical Equipment 1 ,(
Smith & Nephew DonJoy, Inc. Orthopedic Braces (
The Upper Deck Entertainment Cards
Ashworth, Inc. Golf Apparel L
Republic Tool & Manufacturing Company Tools L
Palomar Products Integrated Circuits
ViaSat Communications Equipment 1
Syntron Bioresearch, Inc. Test Kits & Diagnostics 1
No Fear Clothing 1
Randall Products International, Inc. Cosmetics L
Beckman Instruments Medical Diagnostic Reagent 1
Schumacher Chemical Purification Systems L
Stillman Seal Industries Industrial Seals L
Taylor Made Golf Company, Inc. Golf Equipment i
Eaton-Leonard Corporation Tube Bending Machines 1
Ismeca USA, Inc. Automation Equipment 1
Artecon, Inc. Computers 1
Asymtek Fluid Dispensing Systems 1
Calcitek, Inc. Dental Implants 1
Hughes-JVC Technology Corporation Communications Equipment I
Tacan Corporation Fiberoptics I
Non-Manufacturing. :
Plaza Camino Real Shopping Mall 3,(
La Costa Resort & Spa Hotel/Health Spa 1 ,(
City of Carlsbad Municipal Government I
Carlsbad Unified School District Education t
Car Country Carlsbad Auto Dealerships L
Gemological Institute of America Marketing Gem Stones L
Farmer's Insurance - Regional Insurance Services L
Isis Pharmaceuticals Research & Development
San Diego Gas & Electric Company
Software of the Month Club Computer Softwarelshareware 1
COSTCO Grocer/Wholesale/Retail 1
Power Generation
Coast Waste Management Solid Waste Disposal 1
Body Wise International Nutritional Supplements 1
Best Western Andersen's Inn Hotel/Restaurant
NTN Communications Interactive Entertainment & Television 1
Source: City of Carlsbad Chamber of Commerce , 54
CITY OF CARLSBAD I
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1996-97
Percentage
Assesse
Taxpayer Type of Business Va I u a t ion Valuatior
San Diego Gas & Electric Co. Power Generation $298,803,993 I La Costa Hotel & Spa Corp. Hotel & Health Spa 109,176,067 B Callaway Golf Company Manufacturer 63,171,578
59,670,485 I Real Estate Collateral Mgt Co Real Estate 48,680,000 1 Puritan Bennett Corporation Manufacturer 33,023,600
Plaza Camino Real Shopping Center 31,405,087 I Aviara Land Associates Ltd Ptnr Land Developer 26,022,165 I Hughes Aircraft Company Manufacturer 23,412,450
Vons Companies, Inc. Grocery Retailer 23,090,328
Multi Family Associates Property Mgmt 22,148,786
Upper Deck Company Entertainment Cards
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$ 738,604,539 li I (I) Net assessed valuation for 1996-97: $6,005,069,504
Source: County of San Diego Office of the Auditor and Controller
HdL Coren & Cone
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CITY OF CARLSBAD
Top 30 Sales Tax Generators
1996-1 997
Firm Product'Service
Air Products & Chemicals C he mica1 Product!
Bob Baker Cadillac Car Dealershik
Bob Baker lnfiniti Car Dealershir
Bob Baker Jeep/Eagle/Hyundai Car Dealershir
Bob Baker Volkswagen Car Dealershir
Body Wise International Distributor/Health Product:
Broadway Department Stores Department Store
Bullock's Department Stores Department Ston
Callaway Golf Manufacturer/Golf Equipmen
Carlsbad Mitsubishi Car Dealershir
Carlsbad Volvo Car Dealershir
Hoehn Honda Car Dealershir
Hoehn Oldsmobile Car Dealershir
J. C. Penney Company Department Store
Jim Finney Pontiac Car Dealershir
La Costa Hotel & Spa Hotel & Health Spa
Lexus Carlsbad Car Dealership
North County Lincoln/Mercury Car Dealership
Price Club General Stores
Reliable Wholesale Lumber Building Materials
Robinsons-May Department Stores Department Store
Rorick Buick Car Dealership
Sears-Roebuck & Company Department Store
The Good Guys Appliance Store
Toyota Carlsbad Car Dealership
Valley National Financial Services Business Services
Vince Dixon Ford Car Dealership
Vons Grocery Company Supermarkel
Weseloh Chevrolet Car Dealership
Worthington Dodge Car Dealership
Source: Municipal Resource Consultants (MRC)
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CITY OF CARLSBAD I Miscellaneous Statistical Information
4 1996-97
Date of I ncorpora ti on July 16, 1952 Type of City General Law
Form of Government CounciVManager
Area 42.19 sq. miles
Population (CA Dept of Finance Report 1/1/97) I Assessed Valuation $ 6,140,175,735
I Miles of Streets 230
70,099
Number of Street Lights 5,200
Fire Protection:
Number of Stations 6
Number of Firefighters & Officers 72
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Police Protection:
Number of Stations 1
Number of Sworn Police Officers 88
Municipal Water District:
Number of Customers 58,000
Number of Water Connections 18,200
Average Daily Consumption
Miles of Lines and Mains
13.72 million gallons
325
Miles of Sewers 115
Recreation and Culture:
Number of Parks (Improved and Special Use Areas)
Area of Parks (Including Open Space)
Number of Pools 1
Number of Libraries 2
Number of Volumes 229,998
34
433 acres
Total Number of Authorized Full Time City Employees 51 8
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