HomeMy WebLinkAbout1996-10-01; City Council; 13841; FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED JUNE 30, 19960 0 $j' e9
FINANCIAL RESULTS FOR THE
FISCAL YEAR ENDED
JUNE 30,1996
RECOMMENDED ACTIONS:
1. Accept the Financial Status Report for the fiscal year ended June 30,1996.
2. Approve Resolution No. 74 '320 appropriating additional funds for Police and Fire.
ITEM EXPLANATION:
The financial results for the General fund, the Carlsbad Municipal Water District, the Sewei
Enterprise fund, and the Redevelopment Agency are presented in the attached report for the
fiscal year ended June 30, 1996 (Exhibit 2).
The 1995-96 fiscal year books are closed and the audit is under way for the Comprehensive
Annual Financial Report (CAFR) statements. Although the financial statements are subject tc
audit adjustments, they are not expected to vary materially from the numbers presented here.
The General fund ended the year with an available balance of $14.9 million, which is $1.E
million greater than expected. The increase was due to higher than anticipated revenues anc
slightly lower expenditures. Revenues totalled $42.4 million which was $2.7 million highei
than projected. The increase in revenue is primarily attributable to the economic recovery
with the most notable improvement in the development-related revenues. Expenditures, on i
budgetary basis, were $39.1 million which was $351,000 less than projected.
As of the end of June, the Public Safety departments incurred expenditures in excess of the
budget. The Police department spent $151,010 more than budgeted in fiscal year 1995-96
primarily in overtime. Overtime expenditures were required to back-fill positions while recruit:
were in the academy. Additionally, the Police department experienced an increase ir
overtime hours for court appearances, mall detail, gang detail, and the Narcotics Task Force
The Fire department spent $121,800 more than the budgeted, primarily in the areas o
salaries and overtime. The salary budget for the Fire department was not sufficient to covei
the salary increases for fiscal year 1995-96. Furthermore, the ongoing need to fill vacancies
with the use of overtime was underestimated in the budget. It is requested that Counci
appropriate additional funding from the contingency account in fiscal year 1995-96 for thesc
The Water Enterprise had an operating income of $1.6 million for the year due to increase(
water sales and lower than budgeted expenditures. An increase in the number of wate
customers resulted in an increase in water use and sales. Expenses were lower that
anticipated for materials and supplies, capital outlay, and depreciation.
Sewer operations had annual operating income of $1.1 million for the fiscal year. The
increase in the Sewer fund income is attributable to an increase in revenue and a decrease ii
expenditures. During fiscal year 1995-96, the number of sewer connections increased
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PAGE TWO OF AGENDA BILL NO. ) 3 I gL\ I
resulting in an increase in revenues. Expenses were lower than the previous fiscal year due to
a budgeted decrease in the interdepartmental charges.
Revenues to the Redevelopment Agency total $1.4 million for the year ended June 30, 1996,
which is $66,000 more than the prior year. The Agency's primary source of revenues is
property taxes which have not changed significantly from the previous year.
The majority of the increase in revenues can be found in the category of Miscellaneous
Revenues. Miscellaneous revenues include $35,000 in annual administrative fees from the
Seascape Mortgage Revenue Bonds which was negotiated when the bonds were refunded last
year. Expenditures for the Agency were essentially equal to the budget at $1.6 million.
Additional information regarding the financial results for all of these funds is available in the
attached report (Exhibit 2).
FISCAL IMPACT
Appropriations in the amount of $151,010 and $121,800 will be required for the Police and Fire
departments, respectively, from the Council Contingency account for expenditures in excess of
the budget for fiscal year 'I 995-96.
EXHIBITS
1. Resolution No. ' 4&::32c appropriating funds for the Police and Fire departments in
fiscal year 1995-96.
2. Financial Status Report for the Fiscal Year Ended June 30, 1996
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RESOLUTION NO. 96-320
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, APPROPRIATING FUNDS
FOR THE POLICE AND FIRE DEPARTMENTS.
WHEREAS, the financial results for the year ended June 30, 1996, indicate
expenditures in excess of budget for the Public Safety departments; and
WHEREAS, the Council’s Contingency fund is sufficient to appropriate
additional funds,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carisbad, California, as follows:
1. That the above recitations are true and correct.
2. That additional appropriations in the amount of $151,010 are authorized from
the Council Contingency account to pay for expenditures in excess of budget for the
Police department in fiscal year 1995-96.
3. That additional appropriations in the amount of $121,800 are authorized from
the Council Contingency account to pay for expenditures in excess of budget for the Fire
department in fiscal year 1995-96.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council on the 1st day of October , 1996, by the following vote, to wit:
AYES: Council Members Lewis, Nygaard, Kulchin, Hall and Finnila
NOES: None
ABSENT: None
ATTEST:
(SEAL)
h4R&+
ALETHA L. RAUTENKRANZ, City Clerk
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Financial Status Report
Prepared by the Finance Department
INTRODUCTION
The City of Carlsbad’s fiscal year 1995-96 books are closed and the audit is under way for the
Comprehensive Annual Financial Report (CAFR) statements. Although the financial statements
are subject to audit adjustments, they are not expected to vary materially from the numbers
presented in this report.
OVERVl EW
Carlsbad’s General fund
revenues increased by
$1.1 million, or 2.8%,
compared to the previous
fiscal year.
During fiscal year 1995-96,
General fund revenue
projections were increased
from the adopted budget of
$38.9 million to $39.7
million. Despite this
$800,000 increase in
projections, actual
revenues exceeded the
projection by $2.7 million.
The “Signs of the Times”
summary highlights some
specific revenue sources
and their variance
compared to the previous
fiscal year.
Much of the increase in General fund revenues was due to development-related activities and the
economic recovery. As stated in the California Economic lndicafors publication, “this strong
economic growth reflects a continuation of trends seen over the past year - a vigorous, diverse,
broad-based economic recovery and expansion.. .I”
Further detail about Carlsbad’s General fund revenues can be found in this report as well as an
overview of the General fund expenditures for the fiscal year ended June 30,1996. In addition, the
financial status of the Water and Sanitation Enterprise and the Redevelopment Agency will be
discussed.
1 “Review of Recent Economic Developments”, California Economic Indicators (July/August 1996):3.
GENERAL FUND
FISCAL YEAR 1995-96
UNRESERVED - UNDESIGNATED FUND BALANCE
Actual on a
Budgetary %
Projected* Basis Difference Difference
Unreserved, undesignated
fund balance, 7/1/95 11,755,000 11,755,000
Adjust for prior year encumbrances
and carryforwards:
Prior year encumbrances 724,000 724,000
Prior year carryforwards 399,000 399,000
Adjusted balance 12,878,000 12,878,000
Revenues 39,663,000 42,401,000 2,738,000 6.9%
Expenditures (39,432,000) (39,081,000) 351,000 -0.9%
Other adjustments & transfers 0 (1,308,000) (1,308,000)
Unreserved, undesignated
fund balance, 7/1/96 13,109,000 14,890,000 1,781,000
* As estimated in the 96-97 Operating Budget document.
Taxes
Property tax revenues essentially equalled
the previous year at $10.9 million.
Sales taxes, of $11.5 million, increased by
$143,000 over the previous fiscal year. A
taxes received under Proposition 172.
$359,000 in fiscal year 1994-95 to $382,000
in 1995-96) and are used to support public
portion of the increase was due to the sales
These taxes have grown by 6% (from
safety programs.
Transient occupancy tax (hotel tax) receipts
were $155,000, or 5%, higher than the
Tax Revenue
Fiscal Year Comparison
TRANSIENT TAX
SALES TAX
PROPERTY TAX
In millions
0 PI 94-95 FY 95-96
Bullefin, “Growth not only
continued in 1995, but
accelerated as the region
emerged from the recession
and once again established
production and employmenrt.”2
Construction activity in
Carlsbad increased and led to
development-related revenues.
Construction permits displayed
revenues exceeding the
record levels of economic
significant increases in
the most notable change with
previous year by $274,000 or
42%. During the 1995-96 fiscal
year, the City issued permits
for 494 dwelling units and
860,222 square feet of
Development Fee Revenue
Fiscal Year Comparison
CONSTRUCTION
PERMITS
ENGINEER ING
BUILDING
PLANNING
0 200 400 600 800 1,000 1,200
In Thousands
0 FY 94-95 FY 95-96
Other gains in revenue for fiscal year
1995-96 can be found in ambulance
fees, business license revenues,
recreation fees, fines and forfeitures,
and vehicle license fees.
Ambulance fee revenues totalled
$422,000, which was $69,000 or
20% higher than last fiscal year.
Collection efforts by the Finance
department resulted in the increase
in revenues for the year.
Business license revenues, at $1.5
million, have been increasing for the
by $245,000, or 20%, compared to
increase in business license
City. These revenues have grown
fiscal year 1994-95. Most of the
Other Revenue
Fiscal Year Comparison
AMBULANCEFEES
BUSINESSLICENSE
RECREATIONFEES
FINE&
FORFEITURES
VEHICLE LICENSE
FEE
0 500 1000 1500 2000 2500
InThousands
0 FY 94-95 m FY 95-96 i
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Financial Status Report Page Five
Recreation fees of $788,000 were 11 % higher than last year. Recreational classes, aquatics
programs, special events, and sports programs make up the majority of the recreation fees.
Property rental fees of $1 70,000 were 3% higher than the previous year.
Fines and forfeitures revenue, at $335,000, was 27% or $72,000 higher than the previous year.
Revenue from parking citations has doubled from the previous year and accounts for $61,000 of
the increase in revenue. Much of the increase in revenue was due to the enforcement of two-hour
parking limits and the addition of the Coaster station. The Coaster station is a new parking area for
the traffic division to manage which has increased the number of parked cars in the City.
Vehicle license fees totalled $2.5 million which is an increase of $106,000 or 5% over the prior
year. The amount received in fiscal year 1995-96 reflects an increase in the numbers and/or
values of automobiles within the State.
"Other revenue sources'' include reimbursements from Northwestern National Life insurance and
credits which offset the City's PERS expense.
Following is a comparison of General fund revenue for fiscal years 1995 and 1996.
GENERAL FUND REVENUE COMPARISON
FISCAL YEAR FISCAL YEAR DOLLAR PERCENT
1994-95 1995-96 CHANGE CHANGE
Taxes $27,175,812 $27,586,049 $410,237 2%
State Subventions 2,619,900 2,675,660 55,760 2%
Licenses and Permits 2,392,270 2,994,343 602,073 25%
Charges for Services 3,978,665 4,442,418 463,753 12%
Fines and Forfeitures 263,411 335,395 71,984 27%
Interest 1,311,791 1,401,592 89,801 7%
Interdepartmental Charges 2,303,335 2,054,319 (249,016) -1 1%
Other Revenue Sources 1,210,585 91 1,708 (298,877) -25%
TOTAL REVENUES $41,255,769 $42,401,483 $1,145,714 3%
The next page provides a detailed revenue comparison by fiscal year and versus the estimate.
FISCAL YEAR
ACTUAL REVENUE
REVENUE ESTIMATE
REVENUE SOURCE 1994-95 1995-96
- TAXES
PROPERTY TAX $10,889,368 $10,900,000
SALES TAX 11,399,568 11,300,000
TRANSIENT TAX 3,252,270 3,200,000
FRANCHISE TAX 1,399,151 1,430,000
TRANSFER TAX 235,455 250,000
TOTAL TAXES 27,175,812 27,080,000
LICENSES AND PERMITS
CONSTRUCTION PERMITS 644,131 700,000
BUSINESS LICENSES 1,245,830 1,400,000
LICENSE TAX-CONSTRUCTION 1 13,118 50,000
OTHER LICENSES & PERMITS 389,191 390,000
TOTAL LICENSES & PERMITS 2,392,270 2,540,000
STATE SUBVENTIONS
VEHICLE IN-LIEU 2,385,855 2,400,000
TOTAL STATE SUBVENTIONS 2,619,900 2,600,000
OTHER 234,045 200,000
- CHARGES FOR SERVICES
PLANNING FEES 803,352 550,000
BUILDING DEPT. FEES 482,904 460,000
ENGINEERING FEES 936,072 800,000
AMBULANCE FEES 353,016 310,000
RECREATION FEES 706,559 700,000
PROPERTY RENTALS 164,076 175,000
TOTAL CHARGES FOR SERVICES 3,978,665 3,475,000
OTHER CHARGES OR FEES 532,686 480,000
263,411 240,000 - FINES AND FORFEITURES
1,311,791 1,200,000 - INTEREST
INTERDEPARTMENTAL CHARGES 2,303,335 1,800,000
OTHER REVENUE SOURCES 1,210,585 728,000
TOTAL GENERAL FUND 41,255,769 39,663,000
1995-96
ACTUAL ACTUAL COMPARED ACTUAL COMPARE1
REVENUE TO ESTIMATE TO ACTUAL
1995-96 DIFFERENCE AS % DIFFERENCE AS
$10,895,405 ($4,595) -0.04% $6,037 0.06
11,542,970 242,970 2.15% 143,402 1.26
3,406,917 206,917 6.47% 154,647 4.76
1,447,378 17,378 1.22% 48,227 3.45
293,378 43,378 17.35% 57,923 24.60
27,586,049 506,049 1.87% 410,237 1.51
917,789 21 7,789 31 .I 1 % 273,658 42.48
1,491,159 91,159 6.51% 245,329 19.69
67,440 17,440 34.88% (45,678) -40.38
517,956 127,956 32.81 % 128,765 33.09
2,994,343 454,343 17.89% 602,073 25.17
2,492,251 92,251 3.84% 106,396 4.46
55,760 2.13 2,675,660 75,660 2.91%
183,409 (16,591) -8.30% (50,636) -21.64
890,897 340,897 61.98% 87,545 10.90
558,621 98,621 21.44% 75,717 15.68
1,101,618 301,618 37.70% 165,546 17.69
422,302 1 12,302 36.23% 69,286 19.63
787,654 87,654 12.52% 81,095 11.48
169,578 (5,422) -3.10% 5,502 3.35
4,442,418 967,418 27.84% 463,753 11.6E
51 1,749 31,749 6.61% (20,937) -3.92
335,395 95,395 39.75% 71,984 27.32
1,401,592 201,592 16.80% 89,801 6.85
2,054,319 254,319 14.13% (249,016) -10.81 ------
91 1,708 183,708 25.23% (298,877) -24.6:
42,401,483 2,738,483 6.90% 1,145,714 2.7.2
GENERAL FUND
EXPENDITURE STATUS BY DEPARTMENT
FOR THE YEAR ENDING JUNE 30,1996
ACTUAL ON A (OVER)/ % (OVER)/
BUDGET B U DG ETARY UNDER UNDER
DEPT DESCRIPTION FY 1995-96 BASIS BUDGET BUDGET
GENERAL GOVERNMENT
CITY COUNCIL 176,889 176,214 675 0.4%
CITY MANAGER 81 1,819 81 1,762 57 0.0%
CITY CLERK 443,862 425,392 18,470 4.2%
ATTORNEY 519,341 51 1,010 8,331 1.6%
FINANCE 1,157,566 1,069,020 88,546 7.6%
TREASURER 115,134 78,982 36,152 31.4%
PURCHASING 369,119 362,861 6,258 1.7%
HUMAN RESOURCES 984,738 937,218 47,520 4.8%
CONTINGENCY 575,768 0 575,768 100.0%
NON-DEPARTMENTAL 1,624,604 769,367 855,237 52.6%
TOTAL GENERAL GOVERNMENT 6,778,840 5,141,826 1,637,014 24.1%
PUBLIC SAFETY
POLICE 9,320,985 9,471,992 (151,007) -1.6%
FIRE 6,983,948 7,105,676 (1 21,728) -1.7%
TOTAL PUBLIC SAFETY 16,304,933 16,577,668 (272,735) -1.7%
COMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT 1,019,840 891,838 128,002 12.6%
ENGINEERING 3,386,239 3,385,709 530 0.0%
PLANNING 2,173,931 1,948,732 225,199 10.4%
BUILDING 887,038 851,969 35,069 4.0%
TOTAL COMMUNITY DEVEiLOPMENT 7,467,048 7,078,248 388,800 5.2%
LIBRARY AND THE ARTS 2,824,287 2,769,113 55,174 2.0%
COMMUNITY SERVICES 7,522,271 7,514,087 8,184 0.1 %
TOTAL GENERAL FUND 40,897,379 39,080,942 1,816,437 4.4%
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Financial Status Report Page Eight
Expenditures in Excess of Budget
Through the month of May, all departments were under budget by at least 8.3%. If funds were
spent evenly throughout the year, 8.3% of the budget should be adequate for one month’s
expenditures. However, as of the end of June, the Public Safety departments incurred
expenditures in excess of thle budget.
Police
The Police department spent $151,000 more than budgeted in fiscal year 1995-96, primarily in
overtime .
Overtime expenses for the department are variable and depend upon the need for special detail,
personnel coverage, court appearances, and extended duty. Overtime expenditures were required
for personnel coverage while recruits were in the academy. During the fiscal year, five recruits
attended the academy. On top of paying a salary to recruits, overtime expenditures were incurred
by existing staff to cover the positions while the recruits were in the academy. The Police
department also experienced an increase in overtime for court appearances. It is believed that the
new “three strikes” law is resulting in a greater number of cases going to court. Defendants are
less likely to plea bargain under the new law. Additionally, the department realized an increase in
special detail hours. Special detail for patrol officers occurs on overtime. The hours spent for
mall detail, gang detail andl the Narcotics Task Force detail increased compared to the previous
year.
The Finance department reviewed the 1996-97 overtime budget for the Police department and is
comfortable with the amount for overtime. While it is always difficult to predict the need for
overtime, the 1996-97 budget includes a $100,000 increase in overtime compared to 1995-96.
Actual expenditures will be monitored throughout the year to determine if additional funding will be
required.
Fire
The Fire department spent $122,000 more than the budgeted amount in fiscal year 1995-96,
primarily in the areas of salaries and overtime.
The salary budget for the Fire department was not sufficient to cover the salary increases for fiscal
year 1995-96. This oversight in the budget calculations accounts for approximately $74,000 of the
Fire department’s variance.
Additionally, the ongoing need in 1995-96 to fill vacancies with the use of overtime, was
underestimated in the budget. The Fire department had a higher number of vacancies than
anticipated during budget preparation which required the use of overtime to maintain the minimum
staffing requirements. This accounts for approximately $48,000 of the variance.
Salaries in the 1996-97 budget were analyzed and the Finance department is comfortable with the
budget. The need for coverage to fill vacancies is difficult to predict. Overtime expenditures will be
monitored throughout the fiscal year to determine if additional funding will be required.
CARLSBAD MUNICIPAL WATER DISTRICT
WATER OPERATIONS FUND
JUNE 30,1996
FY 1995-96 Y-T-D Y-T-D %
BUDGET 6/30/95 6/30/96 DIFFERENCE DIFFEREb
REVENUES:
WATER SALES 10,067,000 9,854,107 10,616,729 762,622
CHARGES FOR CURRENT SERVICES 2,562,800 2,650,227 2,790,184 139,957
FINES, FORFEITURES & PENALTIES 283,000 247,536 181,962 (65,574) (
INTEREST 200,000 379,152 437,186 58,034
OTHERREVENUES 63,400 286,909 414,783 127,874
TOTAL OPERATING REVENUE 13,176,200 13,417,931 14,440,844 1,022,913
EXPENSES:
SALAR I ES/B EN EFlTS 2,302,453 2,052,240 1,941,056 (1 11,184)
INTERDEPARTMENTAL SERVICES 954,180 959,660 950,920 (8,740)
PURCHASED WATER 7,337,000 6,726,612 7,671 ,I 52 944,540
MWD/CWA READY-TO-SERVE 240,000 0 235,836 235,836
OUTSIDE SERV/MAINT/UTILITIES 446,227 400,634 421,896 21,262
(19,278) ( GENERAL OFFICE EXPENSE 136,942 128,169 108,891
MATERIALS/SUPPLIES/MISC. 370,764 419,936 296,655 (1 23,28 1 ) (
DEPRECIATION 1,300,000 1,100,551 1 ,I 50,000 49,449
CAPITAL OUTLAY 117,879 37,157 50,598 13,441
TOTAL OPERATING EXPENSES 13,205,445 11,824,959 12,827,004 1,002,045
OPERATING INCOME/LOSS (29,245) 1,592,972 1,613,840 20,868
FY 1995-96
BUDGET
REVENUES:
CHARGES FOR CURRENT SERVICES 4,463,000
INTEREST 200,000
OTHER REVENUES 9,500
TOTAL OPERATING REVENUE 4,672,500
EXPENSES:
SALARIES/BENEFITS 614,684
INTERDEPARTMENTAL SERVICES 255,930
UTILITIES/RENTALS AND LEASES 62,000
OUTS1 DE SERVICES/MAI NTENANCE 270,747
MATERIALS AND SUPPLIES 90,225
DEPRECIATION 1,100,000
ENCINA PLANT SERVICES 2,000,000
CAPITAL OUTLAY 101,700
MISCELLANEOUS EXPENSES 42,840
TOTAL OPERATING EXPENSES 4,538,126
OPERATING I NCOME/LOSS 134,374
JUNE 30,1996
Y-T-D Y-T-D %
6/30/96 DIFFERENCE DIFFERENC 6/30/95
4,666,816 4,923,441 256,625 5
254,266 342,737 88,471 34
61,528 14,779 (46,749) (76.1
4,982,610 5,280,957 298,347 6
489,449 505,431 15,982 3
466,478 251,950 (214,528) (46.
62,398 55,792 (6,606) (10.1
89,052 1 10,330 21,278 23
57,967 58,871 904 1
1,223,605 1,225,000 1,395 0
1,828,730 1,897,466 68,736 3
18,081 36,091 18,010 99
27,166 24,180 (2,986) (11.
4,262,926 4,1651 11 (97,815) (2.
71 9,684 1, I1 5,846
CARLSBAD REDEVELOPMENT AGENCY
OPERATIONS AND DEBT SERVICE FUNDS
JUNE 30,1996
FY 1995-96
REVENUE BUDGET Y-T-D Y-T-D
REVENUES 6130195 6130196 DIFFERENCE
PROPERTY TAXES 1,200,000 1,158,957 1,170,153 11,196
INTEREST 75,000 108,257 122,460 14,203
MISCELLANEOUS REVENUES 78,100 79,452 120,076 40,624
TOTAL REVENUES 1,353,100 1,346,666 1,412,689 66,023
TOTAL AVAILABLE %
EXPENDITURES FY 1995-96 COMMITTED BALANCE AVAILABLE
BUDGET 6130196 (I) 6130196 6130196
SALARIES/BENEFITS 154,310 182,789 (28,479) (1 8.5)
INTERDEPARTMENTAL SERVICES 204,860 204,691 169 0.1
RENTALS & LEASES 103,100 95,866 7,234 7.0
DEBT EXPENSE 1,049,100 1,078,840 (29,740) (2.8)
OUTS1 DE SERV/MAINT./MISC. 130,901 86,818 44,083 33.7
TOTAL EXPENDITURES 1,642,271 1,649,004 (6,733) (0.4)
EXCESSOFREVENUESOVER
EXPEN DlTU RES (289,171)
(I) Total committed includes expenditures and encumbrances.