HomeMy WebLinkAbout1999-01-05; City Council; 14999; 1997-98 Annual Financial ReportsP 9 & $ a
CITY OF CARLStrAD, HOUSING AND REDEVELOPMENT COl\hhnlSSION,
PUBLIC IMPROVEMENT CORPORATION AND
CARLSBAD MUNICIPAL WATER DISTRICT -AGENDA BILL
AB# /Y, ?q 9 TITLE: Y
MTG. 1-5-99 1997-98 ANNUAL FINANCIAL REPORTS CITY ATTY. Wrr
DEPT. FIN CITY MGR. sx
RECOMMENDED ACTION:
Accept the 1997-98 City of Carlsbad Comprehensive Annual Financial Report (CAFR), the Single
Audit Report, the Independent Auditors’ Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets, the Carlsbad Redevelopment Agency Annual Report and the City
of Carlsbad Public Improvement Corporation Annual Report.
ITEM EXPLANATION:
Each year an independent auditor examines the City’s financial records. In fiscal year 1997-98,
Conrad & Associates completed its sixth year as the City’s outside auditor; the first year of their new
contract. The audit process requires several months of on-site examination, testing, and
reconciliation of investments, bank statements, accounting records, warrants issued, payroll records,
appropriations, fixed assets, revenues and expenditures. The end result is an opinion on the fairness
of the presentation of the financial data within the reports. As in the past, this year we received an
unqualified opinion on all of our annual reports. The City CAFR has been awarded a Certificate of
Achievement for Excellence in Financial Reporting in 1997, and we believe that our current report
continues to conform to the Certificate of Achievement Program requirements.
The CAFR includes all entities for which the City exercises oversight responsibility which includes, but
is not limited to, the authority to govern, manage, approve budgets and assume fiscal responsibility.
Using this definition as a guide, the 1997-98 CAFR includes the financial transactions of the following
legal entities:
The City of Carlsbad
The Carlsbad Municipal Water District
The City of Carlsbad Public Improvement Corporation
The Carlsbad Redevelopment Agency
Due to various legal requirements and managerial needs, separate financial statements are prepared
for some of the above entities. These have been previously distributed to the respective governing
bodies and additional copies are on file with the City Clerk and the Finance Department.
Financial Summarv as of June 30, 1998
City of Car/&ad
The reports show the financial condition of the City at June 30, 1998. The combined assets of the
City of Carlsbad are $527 million, with fixed assets comprising 37% and cash and investments at 50%
of the total. Total City expenditures were $106.7 million, an increase of $13.1 million from 1996-97.
The City expended higher funds because of increased capital project expenditures, additional police
staffing, a personal computer conversion program for the Safety Center, higher levels of development
activities in the community development departments and one-time issuance costs related to the debt
refinancing for the Hosp Grove bonds and the College Boulevard Assessment District.
c.
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Combined City revenues totaled $157.6 million, up $24.2 million over 1996-97. The major factors for
the revenue gain are increased sales taxes, property taxes and transient occupancy taxes (TOT), the
issuance of the Carlsbad Ranch Assessment District bonds, higher Community Facilities District
(CFD) #I revenues, increased TransNet funding, and the receipts of grant funds from the Coastal
Conservancy for floriculture preservation on the Carlsbad Ranch Flower Fields.
General fund undesignated reserves increased by $10.7 million due to higher than anticipated revenues and lower than expected expenditures. Special revenue undesignated reserves increased
$2.8 million reflecting increased revenues and reduced expenditures. Unreserved funds designated
for future capital projects equaled $55.1 million.
Working capital in the internal service funds (fleet management, insurance and information systems)
increased $1 .l million. This increase is primarily due to inter-department billings during the year
exceeding actual expenses incurred.
Cadsbad Redevelopment Agency
The combined assets of the Carlsbad Redevelopment Agency as of June 30, 1998 are $32.7 million.
Total revenues were $1.9 million and total expenditures were $2.3 million, virtually the same amounts
as the previous fiscal year.
City of Cadsbad Public /mprovement Corporation
The combined assets of the City of Carlsbad Public Improvement Corporation (PIC) as of June 30,
1998 are $25.9 million, an increase of $12.6 from the previous fiscal year. The assets and liabilities of
the PIC have increased due to the refunding of the Carlsbad Municipal Water District (CMWD)
Certificates of Deposit (COPS) during the year. As of result of this refunding, the PIC is now the debt
issuer for both the CMWD and Hosp Grove COPS. In addition to the CMWD COPS, the Hosp Grove
COPS were also refunded during the year. These two refundings will save the PIC over $2.8 million in
interest costs over the term of the debt.
Additional information regarding the City’s operations and achievements for 1997-98 can be found
in the CAFR Letter of Transmittal.
FISCAL IMPACT:
The CAFR and the additional financial reports present the financial condition of the City and its
related entities; the Carlsbad Redevelopment Agency and the City of Carlsbad Public Improvement
Corporation as of June 30, 1998. With the changing economic situation, the financial condition of
the City and its related entities also changes. In order to maintain a good understanding of the
City’s complex financial picture, financial updates are given to Council on a quarterly and as-
needed basis.
EXHIBITS:
Audit reports are on file with the City Clerk and Finance Department:
1. Comprehensive Annual Financial Report for the fiscal year ended June 30, 1998.
2. Single Audit Report on Federal Assistance Programs for fiscal year ended June 30, 1998.
3. Independent Auditors’ Report on Agreed-Upon Procedures Applied to Appropriations Limit
Worksheets.
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Page 3 of Agenda Bill # /Y. 5 4 4 ‘
EXHIBITS (continued):
4. Carlsbad Redevelopment Agency, Combined Financial Statements for the fiscal year ended
June 30,1998.
5. City of Carlsbad Public Improvement Corporation, Combined Financial Statements for the fiscal
year ended June 30,1998.
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