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Home My WebLink About1997-09-09; City Council; 14342; Financial results - FY 19971 Y .* I_ -f '1. d E d (a - ->x .. z I- o J 0 z 3 0 o 0 a - 1 AL CITY OF CARLSBAD - AGENDA BILL FINANCIAL RESULTS FOR THE JUNE 30,1997 AB# If/, g'!/& TITLEI MTG. 9/9/97 FISCAL YEAR ENDED OEPT. FIN CITY MGR RECOMMENDED ACTION: Accept the Financial Status Report for the fiscal year ended June 30,1997. ITEM EXPLANATION: The financial results for the General fund, the Carlsbad Municipal Water District, tt Enterprise fund, and the Redevelopment Agency are presented in the attached report for year ended June 30, 1997 (Exhibit 1). The 1996-97 fiscal year books are closed and the audit is under way for the Compi Annual Financial Report (CAFR) statements. Although the financial statements are 5 audit adjustments, they are not expected to vary materially from the numbers presented t The General fund ended the year with an available balance of $19.5 million, which is $2 greater than expected. The increase was due to higher than anticipated revenues an lower expenditures. Revenues totalled $49.7 million which was $3.3 million higher than F The increase in revenue is primarily attributable to the economic recovery, with the mo$ improvement in the development-related revenues. Expenditures, on a budgetary ba $45.4 million which was $463,000 less than projected. The Water Enterprise had an operating income of $2.4 million for the year due to his anticipated revenues for water sales and charges for current services and sligh expenditures. In 1996-97, 671 new customers were added to the Water District. Sewer operations had annual operating income of $1.7 million for the fiscal year. The in the Sewer fund income is attributable to an increase in revenue and a decrease in expe During fiscal year 1996-97, the number of sewer connections increased resulting in an in( revenues. Expenses were lower than the previous fiscal year due to lower operating cos larger year-end adjustment, for Encina plant services. Revenues to the Redevelopment Agency total $1.3 million for the year ended June 3 which is $70,000 less than the prior year. The Agency's primary source of revenues is taxes which were $28,000 lower than the previous year. Although interest income is higher than budgeted, it is $42,000 lower than last year due to the interest received last ye the bonds were refunded. Expenditures for the Agency were slightly below the budge million. Additional information regarding the financial results for all of these funds is availabll attached report (Exhibit 1). EXHIBIT 1. Financial Status Report for the Fiscal Year Ended June 30, 1997 0 0 Financial Status Report Prepared by the Finance Department FOR THE YEAR ENDED JUNE 30,1997 INTRODUCTION The City of Carlsbad’s fiscal year 1996-97 books are closed and the audit is under way Comprehensive Annual Financial Report (CAFR) statements. Although the financial stai are subject to audit adjustments, they are not expected to vary materially from the n presented in this report. OVERVl EW Carlsbad’s General fund revenues were projected to increase by $3.9 million over the actual 1995-96 res u Its. Actual revenues for the General fund exceeded expectations by $3.3 million. At $49.7 million the General fund revenues were $7.3 million, or 17%, higher than the previous year. Building Dept. Fe The “Signs of the Times” summary specific revenue sources and their variance corn pa red to the previous fiscal year. economy was described by the Economic Bulletin as follows: Property Taxes Planning Fees highlights some Carlsbad’s “Signs of the Times” are similar to that found in San Diego. San L “Greater San Diego Chamber of Commerce Econom/c lndicators show improvement all over. San unemployment rate drops to 4.1% ... the lowest level since 1990. Visitor spending in San Diego ta billion for the first time ever in 1996. Overnight visitors to San Diego near 14 million in 1996, the number ever reported. Construction of single-family homes up 22 percent in 1996. The total \ construction projects in San Diego rise 7.0 percent to $2.1 billion during 1996, the highest amount since ‘ “Greater Sun Diego Chamber of Commerce Economic Indicators Show Improvement All Over”, Greater Sun Dies, Chamber ofcommerce Economic Indicutors (Spring 1997): 1. Taxes is sales tax, followed by property tax, and transient occupancy (or hotel) tax. Sales tax receipts of $12.5 million increased by $944,000 over last year. sales taxes received under Proposition 172. These taxes have grown by 4.8% (from $382,000 in fiscal year 1995-96 to tax revenue can be found in new auto sales, leasing, and business services, equipment, and financial services. The City’s largest source of tax revenue A portion of the increase was due to the $400,400 in 1996-97). Gains in sales such as electronic equipment, office Tax Revenue fiscal Year Comparison TRANSIENT TAX SALES TAX pRopERTy TAx 00 20 40 60 80 100 120 1 In millions 095-96 H 96-97 ~ Development Fee Revenues As stated in the Economic Bulletin, “When more disposable income becomes available due housing ranks high on the list of possible investments. This creates housing demand, and construction labor increases to build housing. We generally employment how the economy is perf~rming.”~ to growth in the local economy, know by construction Con st ruct io n activity accelerated in Carlsbad during 1996-97 and led to significant increases in development-related revenues. Development Fee Revenue Fiscal Year Comparison ~ BUILDING PERM ITS ENGINEERING BUILDING PLANNING 0 500 1000 1500 2000 2500 3000 In Thousands 95-96 B 96-97 -~ Other Revenues Other gains in revenue for fiscal year 1996-97 can be found in ambulance fees, recreation fees, and vehicle license fees. Ambulance fee revenues totalled $577,000, which was $155,000, or 37%, higher than last fiscal year. The City has a contract with Wittman Enterprises to provide its ambulance billing service. Wittman Enterprises has provided the City with faster and billing. greater collections for ambulance Recreation fees of $925,000 were 17% higher than last year. Other Revenue Fiscal Year Comparison AMBULANCEFEES BUSINESS LICENSE RECREATION FEES FINE 8 FOR F ElTUR ES VEHICLE LICENSE FEE 0 500 1000 1500 2000 2500 In Thousands ~~ 0 95-96 4 96-97 ~~ ~~ 45 ~.......~....~~..~~~..~.~~..~~.....~...._..... .- E 20 - 15 10 C . .~..-~~. ~~..~~~. ~~...~~....__...~~- ..~. . -~...-~~..-.~.. ..~ ~ -. ..~.....~...~~...~~...~~... -.. _~...._...~.....~..._....~~~. .~ .. : ~-~. ..~~...~~~..-~~...~~~..~~~...~~ --.. ~~ .... ~-. .-~ ..._...._ ~... ~~.._~ ..-.....~.....~...~~....~~~...~....~..~.~-...~~.~~.~...~..~...~~. .~~ ...--. : 0 e Financial Status Report PZ GENERAL FUND REVENUE COMPARISON FISCAL YEAR 4996-97 ACTUAL COMPARED ACTUi TO ESTIMATE TI TAXES PROPERTY TAX $1 38,207 1.25% $3 SALES TAX $1 1,542,970 $12,115,000 371,743 3.07% 9 TRANSIENT TAX $3,406,917 $3,500,000 139,554 3.99% 2 FRANCHISE TAX $1,447,379 $1,510,000 2,823 0.19% TRANSFER TAX $293,378 $360,000 105,668 29.35% 1 TOTAL TAXES 27,586,049 28,585,000 757,995 2.65% 1,7 LICENSES AND PERMITS BUILDING PERMITS 917,788 1,000,000 262,177 26.22% 3 LICENSE TAX-CONSTRUCTION 46,529 13.29% 3 OTHER LICENSES & PERMITS 100,289 10.21% 5 TOTAL LICENSES 8 PERMITS 2,994,344 3,732,000 519,456 13.92% 1,2. BUSINESS LICENSES 1,491,159 1,400,000 11 0,461 7.89% STATE SUBVENTIONS VEHICLE IN-LIEU 2,492,251 2,550,000 107,869 4.23% II TOTAL STATE SUBVENTIONS 2,675,659 2,750,000 126,957 4.62% 21 CHARGES FOR SERVICES OTHER 19,088 9.54% PLANNING FEES 299,806 22.21% 7! BUILDING DEPT. FEES 243,739 34.82% 3, ENGINEERING FEES 1,101,618 2,300,000 71 3,313 31.01 % 13 AMBULANCE FEES 26,823 4.88% 1 RECREATION FEES 92,739 1 1.15% 1, OTHER CHARGES OR FEES 34,840 5.97% I( TOTAL CHARGES FOR SERVICES 4,442,421 6,486,000 1,425,155 21.97% 3,4E FINES AND FORFEITURES (28,912) -8.76% (31 INTEREST 1,401,592 1,400,000 (240,317) -1 7.17% (24 INTERDEPARTMENTAL CHARGES 2,054,319 1,750,000 292,503 16.71% (1 OTHER REVENUE SOURCES 91 1,699 1,307,000 464,579 35.55% 8E TOTAL GENERAL FUND 3,317,416 7.16% 7,2f PROPERTY RENTALS 13,895 8.17% I. 0 0 Financial Status Report Page Expenditures Total expenditures for fiscal year 1996-97 equaled $45.4 million. This was $463,000 less tl budget of $45.8 million. Expenditures are shown on a budgetary basis which means th include all amounts actually spent during the year plus any amounts to be spent which w( coming out of the 1996-97 appropriations (such as money encumbered at the end of the ye appropriations which are going to be continued into the next year). GENERAL FUND EXPENDITURES BY DEPARTMENT FOR THE YEAR ENDED JUNE 30,1997 ACTUAL ON A (OVER)/ Yo ( BUDGET BUDGETARY UNDER UI DEPT DESCRIPTION FY 1996-97 BASIS BUDGET Bl GENERAL GOVERNMENT CITY COUNCIL 204,219 200,733 3,486 CITY CLERK 379,546 357,539 22,007 FINANCE 1 ,159,398 1,120,462 38,936 TREASURER 11 7,745 11 1,828 5,917 PURCHASING 402,864 392,315 10,549 HUMAN RESOURCES 1,206,923 1,167,873 39,050 CONTl NGENCY 20,674 0 20,674 NON-DEPARTMENTAL: CITY MANAGER 919,196 919,196 0 ATTORNEY 580,505 580,505 0 DEBT SERVICE - HOSP GROVE 797,500 797,500 0 VISITOR'S INFORMATION BUREAU 280,260 280,260 0 OPERATING TRANSFERS OUT 2,380,528 2,380,528 0 OTHER NON-DEPARTMENTAL (a) 1,083,714 1,019,202 64,512 TOTAL GENERAL GOVERNMENT 9,533,072 9,327,941 2051 31 PUBLIC SAFETY POLICE 9,731,803 9,686,699 45,104 TOTAL PUBLIC SAFETY 17,103,777 17,055,334 48,443 FIRE 7,371,974 7,368,635 3,339 COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT 1,074,823 974,892 99,93 1 ENGINEERING 4,018,498 4,015,221 3,277 PLANNING 2,207,187 2,145,242 61,945 TOTAL COMMUNITY DEVELOPMENT 8,389,717 8,224,009 165,708 BUILDING 1,089,209 1,088,654 555 LIBRARY AND THE ARTS LIBRARY 2,618,855 2,584,839 34,016 CULTURAL ARTS 302,167 299,450 2,717 TOTAL LIBRARY & ARTS 2,921,022 2,884,289 36,733 COMMUNITY SERVICES 7,882,513 7,875,325 7,188 TOTAL GENERAL FUND 45,830,101 45,366,898 463,203 (a) Other non-departmental expenses include Community Assistance, the Hiring Center, and some of the Harmony Fire . CARLSBAD MUNICIPAL WATER DISTRICT WATER OPERATIONS FUND JUNE 30, 1997 FY 1996-97 V-T-D Y-T-D 0 BUDGET 6130196 6/30/97 DIFFERENCE DIFFEF REVENUES: WATER SALES 10,098,000 10,616,729 11,401,321 784,592 CHARGES FOR CURRENT SERVICES 2,566,000 2,790,184 3,101,929 31 1,745 FINES, FORFEITURES & PENALTIES 208,400 181,962 198,310 16,348 INTEREST 460,000 437,186 589,577 152,391 OTHER REVENUES 108,900 414,940 432,399 17,459 TOTAL OPERATING REVENUE 13,441,300 14,441,001 15,723,536 1,282,535 EXPENSES: STAFFING 2,204,798 2,180,948 1,888,252 (292,696) INTERDEPARTMENTAL SERVICES 990,480 950,920 983,413 32,493 PURCHASED WATER 7,665,000 7,671,152 8,141,707 470,555 MWD/CWA READY-TO-SERVE 316,072 235,836 297,425 61,589 UTILITIES 89,500 83,730 100,993 17,263 OUTSIDE SERVlCESlMAlNTENANCE 281,100 126,609 195,488 68,879 GENERAL OFFICE EXPENSE 209,076 151,692 152,500 808 MATERIALS AND SUPPLIES 256,270 221,602 239,806 18,204 DEPRECIATION 1,300,000 1,117,904 1,200,000 82,096 MISCELLANEOUS EXPENSES 48,270 89,795 51,096 (38,699) I CAPITAL OUTLAY 107,060 50,598 25,847 (24,75 1 ) I TOTAL OPERATING EXPENSES 13,467,626 12,880,786 13,276,527 395,741 OPERATING I NCOME/LOSS (26,326) 1,560,215 2,447,009 886,794 FY 1996-97 BUDGET REVENUES: CHARGES FOR CURRENT SERVICES 4,666,000 INTEREST 260,000 OTHER REVENUES 7,500 TOTAL OPERATING REVENUE 4,933,500 EXPENSES: STAFFING 666,485 INTERDEPARTMENTAL SERVICES 269,460 UTILlTlES/RENTALS AND LEASES 68,000 OUTSIDE SERVICES/MAINTENANCE 256,550 MATERIALS AND SUPPLIES 99,855 DEPRECIATION 1,200,000 ENCINA PLANT SERVICES 2,000,000 CAPITAL OUTLAY 75,108 TOTAL OPERATING EXPENSES 4,684,258 MISCELLANEOUS EXPENSES 48,800 OPERATING INCOMElLOSS 249,243 Y-T-D Y-T-D 6/30/96 6/30/97 DIFFERENCE D)F 4,923,441 5,151,714 228,273 342,737 317,927 (24,810) 14,779 15,579 800 5,280,957 5,485,220 204,263 539,141 611,640 72,499 251,946 267,736 15,790 55,792 61,944 6,152 76,620 68,788 (7,832) 60,871 44,962 (15,909) 1,233,895 1,200,000 (33,895) 1,897,466 1,487,334 (41 0,132) 36,091 62,908 26,817 4,176,002 3,830,682 (345,320) 24,180 25,370 1,190 1,104,955 1,654,538 FY 1996-97 REVENUE BUDGET REVENUES 1,200,000 PROPERTY TAXES INTEREST 50,000 MISCELLANEOUS REVENUES 143,100 1,393,100 Y-T-D Y-T-D 6130196 6130197 DIFFE 1,170,153 1,142,537 Y 122,460 80,464 (. 120,076 119,210 1,412,689 1,342,21 I ( EXPENDITURES FY 1996-97 BUDGET STAF F I N G 151,027 INTERDEPARTMENTAL SERVICES 205,188 RENTALS & LEASES 106,775 DEBTEXPENSE 1,076,000 OUTS1 DE SERV/MAI NT./MISC. 142,856 TOTAL EXPENDITURES 1,681,846 EXCESSOFREVENUESOVER EXPENDITURES (288,746) TOTAL AVAILABLE % COMMITTED BALANCE AVA 6/30/97 (1) 6130197 181,370 (30,343) 204,563 625 91,483 15,292 1,075,977 23 67,372 75,484 1,628,877 52,969