HomeMy WebLinkAbout1999-01-26; City Council; 15030; Financial Status Report, Budget Amendments- -
CITY OF CARLSBAD -AGENDA BILL
AB# 15,030 TITLE: . 1998-99 SECOND QUARTER
MTG. l/26/99 FINANCIAL STATUS REPORT, BUDGET
DEPT. FIN AMENDMENTS
DEPTHD. p -
CITY ATTY. m
CITY MG$@
RECOMMENDED ACTIONS:
1. Accept the Second Quarter Financial Status Report for 1998-99.
2. Adopt Resolution No. 99 e J 6 increasing the revenue estimates and appropriations
for fiscal year 1998-99.
3. Direct staff regarding budget adoption follow-up items included in this report.
ITEM EXPLANATION:
Staff has completed a mid-year update of the revenues and expenditures for the City as of
December 31, 1998. The attached document (Exhibit 2) summarizes the results of the
financial review for the General fund, the Carlsbad Municipal Water District, the Sanitation
Enterprise fund, and the Redevelopment Agency. As a result of the review, several
adjustments to the current budget are being recommended. They will be discussed
throughout the remainder of this report.
Financial Update
General Fund
To date, General fund revenues exceed projections by $3.1 million or 12%. Property taxes
are $350,000 higher than projected for the first half of the year, while sales tax revenues are
ahead of projections by $1.3 million or 18%, and transient occupancy taxes are $522,000 or
7% ahead of projections.
Development-related revenues are slightly below expectations and include engineering fees,
planning fees, building permits and building fees. The main decrease is in engineering and
planning fees which is the result of the reductions in the engineering plan check and
inspection fees adopted by Council in December 1997 and decreased activity, especially in
the processing of large master plans. Building permits and fees are up 6% over the prior year
which is due to the increased activity. Compared to the previous year at this time, the City
has issued permits for 191 more dwelling units.
Other Funds
Revenue for the Water Operations fund, at $8.5 million, is $500,000 greater than the previous
year at this time. An increase in the number of water customers resulted in an increase in
water sales as well as in the cost of purchased water. Through December, the Water
Enterprise has an operating income of $1.4 million.
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PAGE TWO OF AGENDA BILL NO. IS,030
Revenue for the Sanitation Enterprise is also ahead of the prior year by $158,000 due to an
increase in the number of customers. Expenses, at $1.8 million, are slightly below the previous
year due to lower Encina Wastewater Authority payments. To date, the Sewer Operations fund
has an operating income of $1 million.
Revenues for the Redevelopment Agency total $665,000 which is comparable to the previous
year. Expenses are also as expected through December.
BUDGET REVISIONS
General Fund Revenues
Based upon the financial results through December, staff recommends an increase in the
revenue estimates for the General fund totaling $4,411,193 as detailed below and in Exhibit 3.
In addition, staff is recommending a revenue increase of $170,000 in the Vehicle Maintenance
fund.
General Fund Current
Revenue Category Estimate
Revised
Estimate
Change in
Estimate
Taxes
Licenses and Permits
$38,343,407 $41,360,000 $3,016,593
3,030,000 3,230,OOO 200,000
State Subventions
Charges for Services
Fines and Forfeitures
Income from Invest. & Property
3,175,ooo 3,275,OOO 100,000
6,590,OOO 6,534,600 (55,400)
440,000 800,000 360,000
1,680,000 2,250,OOO 570,000
Interdepartmental Charges
Other Revenue Sources
Total General Fund
1,650,OOO 1,650,OOO 0
1,050,000 1,300,000 250,000
$55,958,407 $60,399,600 $4,441,193
Vehicle Maintenance Fund $1,553,900 1 $1,723,900 ) $170,000 1
Tax revenue is estimated to increase by $3 million. The majority of the increase, $2.9 million,
is in the property tax, sales tax and transient occupancy tax (TOT) estimates. Property tax
revenues are estimated to increase by $900,000 based on the County’s report of final assessed
values for the City of Carlsbad. Sales tax revenue is estimated to be $1.3 million higher than
the current estimate based on receipts to date. A significant portion of the increase is seen in
new car sales which are up 20% compared to last year at this time. In addition, the revenues
from the Carlsbad Company Stores have been greater than the estimates used in the adopted
budget. TOT estimates are recommended for an increase of $725,000. This is based on a
continuation of the high level of tourism seen over the past year bolstered by the opening of
Legoland in March 1999. The remainder of the increase in the tax revenue estimate is for
slightly higher estimates for franchise taxes and transfer taxes.
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PAGE THREE OF AGENDA BILL NO. I 5.0 3 0
In the development-related revenues, staff is recommending an increase in the estimate for
building permits of $200,000 as well as a $150,000 increase in building department fees.
Revenues for planning fees do not appear to be as high as was originally estimated, therefore a
decrease of $300,000 is being recommended.
The increase of $360,000 in the fines and forfeitures estimates is based on new legislation
which returned to cities the portion of moving violation fines which were diverted to the state
during the recession. The income from interest and property category is also recommended to
increase based on the results to date and the additional interest earned on the increased
revenues. Other slight increases in ambulance fees, recreation fees and other revenue are
also suggested. Further detail can be found in the attached Financial Status Report.
General Fund Amropriations
The,following increases in appropriations are recommended:
DEPARTMENT
Hourly salaries
Library - increased lease payments
Recreation - Daytrippers excursion program
Engineering - overtime
Facilities Maintenance - upgrade Council chambers projector
Police - canine replacement
TOTAL GENERAL FUND
Requested
Appropriations
$27,000
5,250
27,930
35,000
15,000
5,600
115.780
1 Library State Grant Adult learning - carryforward 404 1
Information Services - Equipment 113,000
Information Services - Y2k desktop testing tools 12,000
Information Services - Uoarade fire station ohones 24.000
1 Vehicle Maintenance - additional fuel purchases 130,000 1
Vehicle Maintenance - accident repair account 30,000
TOTAL OTHER FUNDS 309.404
GRAND TOTAL $425,184 1
An increase in hourly salaries is requested for the Library and the City Manager’s departments.
The Library is requesting $17,000 to cover merit increases for their hourly employees. The City
Manager is requesting $10,000 to supplement the cost of an hourly position (500 hours for the
remainder of the year) to work with the City on organizational improvement and change
activities.
The Library is also requesting an additional appropriation of $5,250 to pay for the increased
lease payments for the La Costa branch library. Their current lease was up in December and
had to be renegotiated for the period until the new library is completed. The increase in the
lease payment was not included in their original budget as the amount was not known at the
time.
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PAGE FOUR OF AGENDA BILL NO. 1 5i * 3 o
Recreation is requesting an additional appropriation of $27,930 and an increase in estimated
revenues of $29,600 for the Daytrippers excursion program. During the first half of the fiscal
year, the Daytrippers excursion program experienced a 53% increase in participation in
comparison to last year. Due to increase in public demand for excursion programs, additional
trips have been planned to the Getty Museum, Laguna Arts Festival, and the Rose Parade.
With the unanticipated increase in popularity of these trips an additional $27,930 is required to
pay for the costs for the remainder of the fiscal year. If funded, the costs would be offset by an
estimated $29,600 in additional revenue.
Engineering is projecting their overtime for the year to exceed their budget by approximately
$35,000 due to the increase in the number of capital projects. A large portion of the overtime
costs will be recovered from the funding sources paying for the projects such as Public Facility
Fees, CFD #I taxes, and Traffic Impact Fees.
Staff is requesting $15,000 to upgrade the council chamber’s projector. The new projector will
have better resolution for Council presentations and the existing one will be moved to the
community conference room at the new building on Faraday Ave.
The Police department is requesting that $5,600 be appropriated for the purchase and training
of a new canine due to the mandatory and unexpected December retirement of one of their
patrol canines.
Normally at the end of the year all remaining budget balances on grants are carried forward to
the following year. Unfortunately one of the grants for the library was left off the carryforward
schedule. Staff is requesting that Council appropriate $404 to the Library state literacy grant
fund for the amount that was remaining at the end of 1997-98 and should have been carried
forward.
The information systems department is requesting that their appropriations be increased by
$113,000 to replace the GIS UNIX server, upgrade the HP9000 and to replace the CMWD
network server. Funds set aside in the Information Systems fund balance through depreciation
charges are available for each of these. In addition, they are requesting $24,000 to complete
the upgrade of the Fire Station phones and $12,000 to purchase some tools to test the City’s
systems for Year 2000 compliance.
Vehicle maintenance is requesting an additional appropriation of $130,000 to their fuel account.
This is to sell fuel to Waste Management over the next 2-4 months until they become
compliant with County Regulations and have their fuel island back in service. This will result in
an increase in revenue of approximately $170,000 based on the negotiated price of cost plus
30%. In addition, fleet is requesting an additional appropriation of $30,000 in their accident
repair account. During the first six months, vehicle maintenance has spent approximately
$25,000 on accident repairs, which is greater than the $10,000 they have budgeted in this
account. The request for this increase will cover the overage and allow Fleet to pay for future
repairs for the balance of the fiscal year.
PAGE FIVE OF AGENDA BILL NO. 1% 0 ‘s 0 I
Capital lmwovement Proiect Reauests
Additionally, some changes in appropriations are recommended for the Capital Improvement
Program projects.
CAPITAL IMPROVEMENT PROGRAM PROJECT
Melrose Drive, Extension - preliminary design
La Costa Ave. - sidewalk construction
College Blvd. & Cannon Rd. Reach 3 & 4
Sidewalk projects
TOTAL CIP REQUESTS
Requested
Fund Appropriations
GCC 10,000
GCC 150,000
Trans Net/Hwy 78 150,000
TDA 10,000
320,000
Staff requests an additional appropriation of $10,000 for the Melrose Drive Extension
preliminary design due to actual costs exceeding the estimate.
In March of 1998, City Council considered the matter of installing sidewalk improvements
adjacent to thirteen undeveloped properties located on the north side of La Costa Avenue
between El Camino Real and Calle Madero. At the time, Council approved the following motion:
“That the missing sidewalks on the north side of La Costa Avenue should be installed by
land owners as development occurs and in the mean time the issue be referred to staff
to find a possible interim solution for the installation of sidewalks.”
Staff completed its review of the potential interim solutions and recommends that Council
proceed with the installation of permanent Portland cement concrete (PCC) sidewalks in lieu of
interim asphalt concrete (AC) sidewalk improvements. Staff is requesting that $150,000 be
appropriated for this project from the General Capital Construction fund. More information on
this recommendation can be found in Exhibit 3.
Staff is requesting an additional $150,000 in appropriations for the College Blvd. and Cannon
Road, Reach 3 & 4 project. An appropriation of $100,000 was authorized in the 1998-99
budget to begin to study the alignment and financing of this project. Preliminary cost figures
have been obtained from our consulting engineers which indicate an additional $150,000 is
needed to complete the environmental and alignment studies and to prepare an Engineer’s
Report for the proposed Bridge and Thoroughfare District (B&TD) for the College Blvd, and
Cannon Rd., Reach 3 portion of the project. Much of the cost increase is attributable to the
preparation of new environmental studies for the project. The previous studies done for various
segments of College and Cannon Roads were found to be inadequate for the current project.
Staff is also requesting that $10,000 be appropriated for Transportation Development Act funds
received which were not appropriated. This money was awarded in 1993 and requested in
1993 but was never paid to the City. During a reconciliation of the program, the error was
discovered and payment was made this fiscal year. Staff recommends appropriating the funds
for use on the sidewalk construction projects.
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PAGE SIX OF AGENDA BILL NO.: 15, 0 3 ~3
BUDGET ADOPTION FOLLOW-UP
During the adoption of the 1998-99 budget, Council requested that staff investigate several
issues and bring these back for resolution or discussion during the fiscal year. These issues
are identified below with a reference to the status of each item.
/Topic Status
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Funding for the 800 Megahertz communication system
Use of the Water and Sewer fund balances
Solid Waste fund balance
General fund balance/ Prop H limit
Community Outreach/Public Information program
Community Activity funds
Carlsbad Convention and Visitor’s Bureau budget
Sandag’s Plan for Fiscal Restructuring
Boys and Girls clubs-fee for entry
Stay ‘n’ Play program- equity issues
Police vehicles
Current status and effect of the limitations is
discussed in Exhibit 4.
The cost of the program is estimated at
$84,000. See Exhibit 5 for further
information.
Three options are presented for Council
consideration. See Exhibit 6.
Request for increased funding is shown in
Exhibit 7. Staff recommends reviewing
request in conjunction with other funding
requests as shown in this agenda bill.
Plan is currently on hold.
Fee is required. See Exhibit 8.
Recommend considering expansion with
future budgets. See Exhibit 9.
Recommend consideration when Crown
Victoria model is discontinued. See Exhibit
10.
Split Pavilion implementation plan Council approved plan on January 19,1999.
Council approved plan on January 5,1999.
Council briefings expected at the end of
January.
Defer decision until resolution of transfer
station fund.
CAPITAL IMPROVEMENT PROGRAM
Carrillo Ranch Recommendation to review with other CIP
projects - See Exhibit 11.
Options for accelerating parks Data provided in Exhibit 12. Council
discussion to follow at a later date.
Options for enhancement/rebuilding of Cole Library Report prepared with four options as shown on Exhibit 12. Staff recommends reviewing
these options in conjunction with the parks
options due to similar funding sources and
effects on General fund operating budget.
PAGE SEVEN OF AGENDA BILL NO.: I5 030
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FISCAL IMPACT:
Staff is recommending increases in the General fund revenue estimates of $4,441,193 and
additional appropriations of $115,780. This results in an increase to the General fund balance
of $4,325,413. Staff is also recommending an increase in the revenue estimate for the vehicle
maintenance fund of $170,000 and increased appropriations of $160,000. The remaining
requested appropriations of $309,404 are requested from other operating funds. Total
additional appropriations for the Capital Improvement Program are $320,000. There are
sufficient balances available in each of these individual funds to support these appropriations.
Further detail can be found in Schedules A, B and C of the resolution.
EXHIBITS
1. Resolution No. W-36 increasing the revenue estimates and appropriations for
fiscal year 1998-99.
2. Second Quarter Financial Status Report for 1998-99
3. Sidewalk Installation Project on La Costa Avenue from ECR to Calle Madero
4. Memo on General fund balance and Proposition H
5. Community Outreach/Public Information Program
6. Update on funding of community activities
7. Carlsbad Convention and Visitor’s Bureau budget request
8. Carlsbad Boy’s and Girl’s Club fee
9. Carlsbad schools report regarding Stay ‘N’ Play
10. Memo regarding police vehicles
11. Friends of Carrillo Ranch funding alternatives
12. Major future civic projects mid year analysis
RESOLUTION NO. 99-36
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, INCREASING
THE REVENUE ESTIMATES AND APPROPRIATIONS
FOR 1998-99.
WHEREAS, the financial results through December reflect
revenue receipts which are $3.2 million ahead of the estimate and much
of the increase is‘related taxes; and
WHEREAS, the City has also realized an increase in
expenses for the first half of the year; and
WHEREAS, total appropriations for each fund may only be
increased or decreased by authorization of the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That estimated revenues will be increased by $4,611,193 as
shown on Schedule A.
3. That budgeted appropriations for the General fund will be
increased by $115,780 and Non-General funds by $309,404 as shown in
Schedule B.
4. That budgeted appropriations for Capital Improvement
Projects will be increased by $320,000. Appropriations will be increased
by $150,000 from the TransNetILocal fund, $10,000 from the
Transportation Development Act fund balance, and $160,000 from the
General Capital Construction fund balance to fund the projects, as
shown in Schedule C.
PASSED, APPROVED AND ADOPTED at a regular meeting
of the City Council on the 26th day of January , 1999, by the
following vote, to wit:
AYES: Council Members Lewis, Hall, Finnila and Kulchin
NOES: None
ABSENT: Council Member Nygaard
ATTEST:
ALETHA L. RAUTENKRANZ, City C&k
(SEAL)
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SCHEDULE A
GENERAL FUND
REVISED REVENUE ESTIMATES FOR 1998-99
A)(q i’. :I .. .. : :. :.. ..: : : PiOPERTY &
SALES TAX
TRANSIENT TAX
FRANCHISE TAX
BUSINESS LICENSE TAX
TRANSFER TAX
OTAL TAXES
f+$jg~@@@Q&#~~& I: ; .::;.:l
VEHICLE LltiEl’iSE FEES
HOMEOWNERS EXEMPTIONS
OTHER
DTAL INTERGOVERNMENTAL
~~~*~.pnP:pE~~~fS; j I.... ...
BUILDING PERMITS
OTHER LICENSES 8 PERMITS
3TAL LICENSES 8 PERMITS
HcI;&@i$ F~R:SEfbaWES1 .:,; .ii
PLANNING FEES
BUILDING DEPT. FEES
ENGINEERING FEES
AMBULANCE FEES
RECREATION FEES
OTHER CHARGES OR FEES
ITAL CHARGES FOR SERVICES
~~~@p#%3~~E~R~*: :. .: ‘. ..i
@~$; pJ&!Jp& INT ig; p#j@@E;n7i~ / .: :
~~lgj#~,RT~~~~~~~~~~~
@j~~~~gy&,#.$~~S;QI~~~ :,. .: .I::: :
rumL ~EW~RAL pimp : .. : z ..
~);l:&@&jg~.~~~Q~~-~ . . ::. :: .i;;+..i
i’iHlCk MAlNTkiANbE FiJNb
fp%:~&@t44j~ ~~~~~~~~~~~~~.
CURRENT REVISED CHANGE
REVENUE REVENUE IN ESTIMATE ESTIMATE ESTIMATE
$13,300,000 $14,200,000 $900,001
15,243,407 16,500,OOO 1,256,59:
5.775,OOO 6,500,OOO 725,001
1,645,oOO 1.710,000 65,OOi
1,800,OOO 1,800,OOO (
580,000 650,000 70,oOt
38,343,407 41,360,OOO 3,016,69:
2,900,ooo 3,ooo.ooo 1 OO,OO(
210,000 210,000 (
65,000 65,000 (
3,175,000 3,275,OOO 1 OO,OO(
1,800,OOO 2,000,000 2oo,ooc
1,230,OOO 1,230,OOO C
3,030,000 3,230,OOO 2oo,ooc
1,200,000 900,000 (300,OOc
1,250,OOO 1,400,000 15o.OOc
1,756,OOO 1,756,ooo C
735,000 800,000 65,00C
1,046,OOO 1,075,600 29.6OC
603,000 603,000
6,590,OOO 6,534,600 (55,4Oi
440,000 800,000 360,000
1,660,000 2,250,ooo 570,000
1,650,OOO 1,650,OOO 0
1,050,000 1,300,000 250,000
55.95&407 fL441 .I 93
1,553.900 1,723,900 170,000
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REVISED APPROPRIATIONS FOR FISCAL YEAR 1998-99
IEPT DESCRlPTlON
CURRENT REVISED
APPROPRlATlONS APPROPRlATlONS INCREASE/
FY 1998-99 FY 1998-99 DECREASE
‘OLICYILEADERSHIP GROUP
CITY COUNCIL
CITY MANAGER
CITY CLERK
CITY ATTORNEY
CITY TREASURER
TOTAL POLICY/LEADERSHIP
,DMINISTRAM SERVlCES
FINANCE
PURCHASING
HUMAN RESOURCES
TOTAL ADMlNlSTRATlVE SERVICES
UBUC SAFETY
POLICE
FIRE
TOTAL PUBLIC SAFETY
OMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENTADMIN
GEOGRAPHIC INFORMATION
ECONOMIC DEVELOPMENT
PLANNING
BUILDING
TOTAL COMMUNITY DEVELOPMENT
DMMUNIM SERVICES
PARK PLANNING 8 RECREATION MGT
RECREATION
SENIOR PROGRAMS
LIBRARY
CULTURAL ARTS
TOTAL COMMUNITY SERVICES
JBLIC WORKS
PUBLIC WORKS ADMINISTRATION
ENGINEERING
PARKS
STREETS & TRAFFIC SIGNALS
FACILITIES
TOTAL PUBLIC WORKS
700,021 700,021 0
4,102,066 4,137,066 35,000
2,411,653 2,411,853 0
2,785,366 2,765,386 0
1,875,062 1,890,082 15.000
11,854,168 11,904,168 50,990
IN-DEPARTMENTAL 81 CONTlNGENCY
COMMUNITY PROMOTION (CCVB)
OTHER NON DEPARTMENTAL
OPERATING TRANSFERS OUT
CONTINGENCY
TOTAL NON-DEPT & CONTlNGENCY
362,180 362,180 0
536,631 536,631 0
2,613,OOO 2,613,OOO 0
2,693,772 2,693,772 0
6,205,583 6,205,583 0
ITAL GENERAL FUND 56,508,244 56,624,024 115,760
IN-GENERAL FUND
LIBRARY ADULT LEARNING
INFORMATION SERVICES
FLEET MAINTENANCE
$213,741 $213,741 0
1,246,178 1,256,178 10,000
479,776 479,776 0
629,920 629,920 0
137,540 137,540 0
2,707,155 2,717,155 10,000
1,325,858 1,325,858 0
519,678 519,878 0
1,519,690 1,519,690 0
3,385,226 3,365,226 0
11,890,772 11,896,372 5,600
8,344,857 6,344,857 0
20,235,629 20,241,229 5,600
552,011 552,Oi 1 0
263,138 263,138 0
142,997 142,997 0
2,453,111 2,453,lll 0
1,619,494 1,819,494 0
5,030,751 5,030,751 0
490,164 496,164 0
2,462.955 2,490,885 27,930
353,913 353,913 0
3,419,145 3,441,395 22,250
383,555 383,555 0
7,109,732 7,159,912 50,180
2,363 2,767 404
1,893,398 2.042,398 149,000
1,415,308 1,575,306 160,000
ITAL NON-GENERAL FUND 309,404
SCHkDULE B
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SCHEDULE C
CITY OF CARLSBAD
CAPITAL IMPROVEMENT PROGRAM
REVISED APPROPRIATIONS FOR FISCAL YEAR 1998-99
CURRENT REVISED
APPROPRIATIONS APPROPRIATIONS INCREASE/
‘ROJECT DESCRIPTION FUND FY 1998-99 FY 1998-99 DECREASE
itreet Proiects:
delrose Drive Extension-Preliminary Design
;idewalk Projects
a Costa Avenue Sidewalk Construction
LolIege Blvd and Cannon Road Reach 3 & 4
GCC 43,981 53,981 10,000
TDA 35,600 45,600 10,000
GCC 0 150,000 150,ooo
Trans NeffHwy 78 0 150,000 150,000
‘OTAL CAPITAL IMPROVEMENT PROGRAM CHANGES f 320,000
. Financial StCus Report
Prepared by the Finance Department
December 31,1998
EXHIBIT 2
CITY OF CARLSBAD
Property Taxes
Building Permits
Although the economy
has been strong over the
past year, the University
of San Diego economic Sales Tax forecast is predicting a
slowdown in the San
Diego economy during the
second half of 1999. This
is based on drops in the
local index over the past Transient Occupancy Tax
several months as well as
the slowdown in housing
sales and the lagging behind national figures of retail sales over this past Christmas season.
Vehicle License Fees
Actual 1997-98 compared to Actual 1998-99 Year-To-Date
Planning Fees
1NTRODUCTlON
For the first six months of
the year, Carlsbad’s
General Fund revenues
total $30 million which is
$4.0 million or 15% over
fiscal year 1998-99. The
majority of the increase is
attributable to increases in
the City’s top three
revenue sources:
property tax, sales tax and
transient occupancy tax.
This report will provide a closer look at the major General fund revenue categories and review the
expenditures through December. Revenues and expenditures for the Water and Sanitation Enterprises
and the Redevelopment Agency will also
be discussed.
GENERAL FUND
Taxes
Sales tax revenues have risen 21%
over last year’s collections and are
18% or $351,000 ahead of the
expected budget. The addition of
the Carlsbad Company Stores, as
well as increasing sales citywide,
contributed to the growth. Over
50% of the City’s sales tax revenues
are generated from transportation
and general retail businesses.
Property taxes are up 13% over
the previous year. Part of this
increase is due to new housing
sales which increased by over 1,000
Tax Revenue
Fiscal Year Comparison
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PROPERTYTAX p13%
TRANSIENTTAX ~28%
FRANCHISETAX ~6%
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
in millions
( q Acbals 97-98 MAduals 98-99 (
homes in the prior year. In addition, the overall increase in housing prices has increased our
property tax base as the number of sales of existing homes has increased and the assessor
has re-valued some of the previously devalued property.
After nine years of depreciated prices, San Diego housing rebounded in 1998 beyond prerecession
levels existing at the turn of the decade. The average price of San Diego County’s existing detached
housing in the Economic Research Bureau’s October 1998 survey was $250,000, the highest ever
reported. North County experienced the highest price gains with an average 12.8% increased in 1998.’
Transient occupancy taxes total approximately $3.4 million year to date which is $736,000, or
28%, above the prior year’s amount and 18% above the expected budget. Most of this can be
attributable to the Four Seasons which was only open for 6 months of the prior year. It appears
that this trend will continue into 1999 especially with the opening of Legoland in March 1999. A
report issued by InterBank/Brener Hospitality, a hotel advisory service stated:
San Diego County’s lodging market showed the highest rates of growth in the nation in 1998, and that the
industry appears headed for a strong new year. This will undoubtedly be San Diego’s finest tourism year
to date barring unforeseen disasters.2
Development Fee Revenue
Fiscal Year Comparison
Develooment Fee Revenues
Engineering fees, which are fees received
for improvement and grading plan check
and inspection services, continue their
downward trend as reported in prior
month’s reports. Fees collected to date
total $845,000, a decrease of $681,000 or
45% from 1997-98. This trend is expected
ENGINEERING
Down 45%
BUILDING
PERMITS to continue in future months due to
reductions in the plan check and inspection
fees adopted by Council in December 1997
and decreased activity especially in the
processing of large master plans.
Building permit revenues collected year to
date were $1.1 million, a 6%, or $39,000,
increase in revenues compared to last
year. Residential activity was surprisingly
strong for December, given the onset of
BUILDING DEPT
FEES
PLANNING
0 200 400 600 800 10001200140016~0
in Thousands
1 0 Acbals 97-98 W Actuals 98-99 1
winter construction conditions, with permits being issued for 121 new homes mainly in the Ranch0
Carillo, Cobblestone, Ranch0 Verde and Santander areas. This brings the total for calendar year 1998
up to 1,390 units which passes 1997’s total of 1,199. This constitutes the largest annual total since the
mid 1980’s. There was a small burst of non-residential activity on both the commercial and industrial
sides with three new commercial offices and an industrial shell building started.
Planning fees totaled $442,000 as of December 1998, showing a decline from last year of 28% or
$173,000. Planning fees were anticipated in the budget estimates to be about the same as last year.
’ Greater San Diego Chamber of Commerce, Economic Bulletin, December 1998. “San Diego Housing Prices Reach New
Heights” p.2.
’ North County Times, December 25, 1998. “Report Outlook from Hotel Market.“p.Dl
Fihancial Status Report - - Page Three
Other Revenue
Fiscal Year Comparison
VEHICLE LICENSE up 10%
FFFS --- h
BUSINESS Up 8% LICENSES I
RECREATION
FEES
AMBULANCE
FEES
FINES &
FORFElTURES
I I I I I I
0 200 400 600 800 1000 1200 1400 1600
In total, development fee revenues were $3.1 million as of the end of December. This is $756,000
or 19% less than development revenues collected in the prior year and $190,000 or 6% less than
the expected budget.
Other Revenues
Total vehicle license fees collected to
date are $1,483,000, a 10% or
$137,000 increase over fees collected
at this time last year. Vehicle license
fees (VLF) are collected by the
Department of Motor Vehicles and
disbursed by the State Controller to
the City. The State taxes motor
vehicles in lieu of local property taxes.
Business license taxes as of
December 1998 are $953,000, a
$71,000 increase over last year’s
revenue of $881,000. Business
licenses issued to date totaled 2,734
compared to 2,621 issued as of the
end of December 1998.
in Thousands
Recreation fees totaled $500,000 as
of December 1998 which is a 6% or
$27,000 increase from the previous
year. It is about even with the
expected budget of $502,000.
1 q Actuals 97-98 n Actuals 98-99
Ambulance fees total $418,000 and are ahead of last year’s total as of December by 19% or
$67,000 and 14% above our expected budget. The increase is due to an increase in fees which
went into effect January 1998, as well as an 80% increase in our Medicare reimbursement rate
which went into effect in August 1998.
Fines and forfeitures consist mainly of receipts from parking citations and the City’s share of fines
from moving violations. They total $410,000 year to date which is 101% or $206,000 more than in
fiscal year 1997-98 and 14% greater than the expected budget of $271,000. This increase is
mainly due to new legislation which became effective on July 1, 1998. This legislation returned to
cities the portion of moving violation fines which were diverted to the state during the recession.
The result should be an increase in fines and forfeitures revenues of more than $250,000.
Income from investments and property as of December 1998 totals $1.2 million and is 41% more
than last year’s revenues at December 1997. The increase is mainly due to a 37% increase in
cash balances and the sale of property in November 1998 for $130,000.
Interdepartmental charges are down 5% from the prior year. This is due a one month delay
in the booking of engineering overhead charges. This month other revenue is up $810,000 from
the prior year. In December, the City received $500,000 in condemnation funds from a developer
which also resulted in a $500,000 increase in estimated revenues.
Financial Status Report - Page Four
GENERAL FUND
REVENUE COMPARISON
EXPECTED Actual Revenue Actual Revenue Change From
BUDGET FY 1998 FY 1999 YTD 98 to Percent
As of 12/31/98 As of 12131197 As of 12/31/98 YTD 99 Change
rAxES
PROPERTY TAX 6,191,059 5,776,814 6,541,761 764,947 139
SALES TAX 7,200,322 6,998,933 8,476,251 1,477,318 210,
TRANSIENT TAX 2,887,500 2,673,775 3,409,982 736,207 280/
FRANCHISE TAX 464,107 483,440 514,696 31,256 60,
BUSINESS LICENSE TAX 989,204 881,350 952,575 71,225 80/
TRANSFER TAX 167,963 241,962 331,763 89,801 370/
rOTAL TAXES 17,900,164 17,056,274 20,227,028 3,170,754 19Y
NTEWWERNMENTAb
VEHICLE LICENSE FEES 1,314,086 1,345,891 1,483,202 137,311 100,
HOMEOWNERS 31,630 35,293 37,681 2,388 70,
:XEMPTIONS
OTHER 19,106 68,875 69,553 678 lo/
TOT INTERGOVERNMENTAL 1,364,821 1,450,059 1,590,436 140,377 100,
LICENSES AND PERh’?tTS
BUILDING PERMITS 895,408 1,041,918 1,101,592 59,674 69
OTHER LICENSES & 667,476 643,051 674,705 31,654 50,
‘ERMITS
rOTAL LICENSES & PERMITS 1,562,884 1,684,969 1,776,297 91,328 50,
2HARGES FOR SERVICES
PLANNING FEES 641,707 615,086 442,010 (173,076) -280,
BUILDING DEPT. FEES 623,708 695,489 734,379 38,890 60,
ENGINEERING FEES 1,152,227 1,527,274 845,442 (681,832) -459
AMBULANCE FEES 367,500 351,603 418,611 67,008 190,
RECREATION FEES 502,107 473,278 500,713 27,435 60/
OTHER CHARGES OR FEES 227,487 224,789 192,531 (32,258) -149
rOTAL CHARGES FOR 3,514,736 3,887,519 3,133,686 (753,833) -190,
SERVICES
FfNES AND FORFEtTURES
INCOME FROM INT &
‘ROPER-W
271,364 204,336 410,210 205,874 1010,
840,000 829,707 1,168,396 338,689 414
NiERbEPARTMENTAL 825,000 790,649 747,536 -59
ZH;A;tiGES
(43,113)
3THER REVENUE SOURCES 525,000 132,120 942,508 810,388 6130,
TOTAL GENERAL FUND 26.803.960 26.035.633 29.996.097 3.960.464 150, (1)
..- ._ _^^, . . . . . . _ - . -^^^ (1 peneral tuna revenues are 12x over buaget estimates as or uecember IYYtl
Financial Status Report - Page Five
Exoenditures
Total General fund expenditures as of December 1998 are $26.2 million. This figure includes
expenditures and encumbrances. This leaves $30.3 million or 53.7% available through fiscal year end
June 30, 1999. If funds were spent in the same proportion as the previous year, the General fund
would have 49.2% available.
The following table identifies the allocation of contingency funds during the fiscal year. To date,
$1,249,928 has been authorized out of the contingency account for the following:
CONTINGENCY ACCOUNT
USE OF FUNDS
Amount Date
II Adopted Budget $3,943,700
Management Salary Adjustment
Incentive Pay Accrual
Energy Consulting Services
Building Inspection Services
March 1999 Special Election Costs
Infrastructure Financing District Consultant
Widening of La Costa Canyon High School Driveway
information Systems salary adjustments
(255,235) 09/O 1198 98-248
(450,000) 09/01/98 98-248
(250,000) 1 O/05/98 98-317
(125,000) 1 O/20/98 98-346
(57,693) 1 O/27/98 98-353
(85,000) 11 /I O/98 98-368
(10,000) 11 /I 6/98 98-37 1
(17,000) 12/15/98 98-416
06/16/98 98-l 91
Resolution
Number
IlCurrent Balance $2,693,772
A detailed schedule of General fund expenditures is provided on the following page.
r7
Financial Status Report A Page Six
GENERAL FUND
EXPENDITURE STATUS BY DEPARTMENT
TOTAL AVAILABLE %
BUDGET COMMITTED* BALANCE AVAILABLE”
EPT DESCRIPTION FY 1998-99 12/31/98 12/31/98 12/31/98
OLICY/LEADERSHIP GROUP
CITY COUNCIL
CITY MANAGER
CITY CLERK
CITY ATTORNEY
CITY TREASURER
TOTAL POLICY/LEADERSHIP
213,741 107,194 106,547 49.8%
1,246,178 789,113 457,065 36.7%
479,776 239,739 240,037 50.0%
629,920 311,201 318,719 50.6%
137,540 48,952 88,588 64.4%
2,707,155 1,496,199 1,210,956 44.7%
DMINISTRATIVE SERVICES
FINANCE
PURCHASING
HUMAN RESOURCES
TOTAL ADMINISTRATIVE SERVICES
UBLIC SAFETY
POLICE
FIRE
TOTAL PUBLIC SAFETY
I ,325,858
519,678
1,519,690
3,365,226
I I ,890,772
8,344,857
20,235,629
613,509
254,672
629,917
1,498,098
5,727,331
4,108,557
9,835,888
712,349
265,006
889,773
1,867,128
6,163,441
4,236,300
10,399,741
53.7%
51 .O%
58.5%
55.5%
51 .a%
50.8%
51.4%
OMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT ADMIN
GEOGRAPHIC INFORMATION
ECONOMIC DEVELOPMENT
PLANNING
BUILDING
TOTAL COMMUNITY DEVELOPMENT
552,011 256,141 295,870 53.6%
263,138 75,777 187,361 71.2%
142,997 55,938 87,059 60.9%
2,453,111 1,201,434 1,251,677 51 .O%
1,619,494 988,938 630,556 38.9%
5,030,751 2,578,228 2,452,523 48.8%
OMMUNITY SERVICES
PARK PLAN & RECREATION MGT
RECREATION
SENIOR PROGRAMS
LIBRARY
CULTURAL ARTS
TOTAL COMMUNITY SERVICES
490,164 212,060 278,104 56.7%
2,462,955 I,21 3,946 1,249,009 50.7%
353,913 140,532 213,381 60.3%
3,419,145 1,647,532 1,771,613 51 .a%
383,555 196,109 187,446 48.9%
7,109,732 3,410,179 3,699,553 52.0%
UBLIC WORKS
PUBLIC WORKS ADMINISTRATION
ENGINEERING
PARKS
STREETS & TRAFFIC SIGNALS
FACILITIES
TOTAL PUBLIC WORKS
700,021 358,075 341,946 48.8%
4,102,066 2,223,312 I ,878,754 45.8%
2,411,653 1,052,456 1,359,197 56.4%
2,765,366 I ,480,174 I ,285,192 46.5%
1,875,062 792,728 I ,082,334 57.7%
11,854,168 5,906,745 5,947,423 50.2%
ON-DEPARTMENTAL 8 CONTINGENCY
COMMUNITY PROMOTION (CCVB)
OTHER NON DEPARTMENTAL
OPERATING TRANSFERS OUT
CONTINGENCY
TOTAL NON-DEPT 81 CONTINGENCY
362,180 362,180 0 0.0%
536,631 224,065 312,566 58.2%
2,613,OOO 875,000 I ,738,ooo 66.5%
2,693,772 0 2,693,772 100.0%
6,205,583 1,461,245 4,744,338 76.5%
OTAL GENERAL FUND 56,508,244 26,186,582 30,321,862 53.7%
Fihancial Status Report - Page Seven
WATER ENTERPRISE
Revenues
Total water revenues are $8.5 million year-to-date. This is a 6.2% increase over fiscal year 1997-98.
The main reason for the increase is increased water sales which are $358,000 or 6.1% ahead of last
year at $6.1 million. This is due to more usage as a result of new customers.
Excenses
Operating expenses in the Water Fund total $7.1 million which is 2.3% or $161,000 more than last
year. The main reason for the increase is due to the $141,000 increase in purchased water which is
the result of additional customers. The decrease in materials and supplies is due to some one-time
expenses in 1997-98 for a remittance processor and replacement of many outdated and damaged
meters thoughout the city.
CARLSBAD MUNICIPAL WATER DISTRICT
WATER OPERATIONS FUND
DECEMBER 31,1998
FY 1997-98 Y-T-D Y-T-D %
BUDGET 12/31/97 i2/31/98 DIFFERENCE DIFFERENCE
REVENUES:
WATER SALES 13,300,000 5,817,436 6,175,105 357,669 6.1
CHARGES FOR CURRENT SERVICES 3,245,200 1,520,022 1,664,097 144,075 9.5
FINES, FORFEITURES & PENALTIES 210,000 104,959 118,813 i 3,854 13.2
INTEREST 725,000 370,330 368,550 (1,780) (0.5)
OTHERREVENUES 555,000 224,606 209,193 (15,413) (6.9)
TOTAL OPERATING REVENUE I 8,035,200 8,037,353 8,535,758 498,405 6.2
EXPENSES:
STAFFING
INTERDEPARTMENTAL SERVICES
PURCHASED WATER
MWD/CWA READY-TO-SERVE
UTILITIES
OUTSIDE SERVICES/MAINTENANCE
GENERAL OFFICE EXPENSE
MATERIALS AND SUPPLIES
DEPRECIATION
CAPITAL OUTLAY
MISCELLANEOUS EXPENSES
TOTAL OPERATING EXPENSES
OPERATING INCOME/LOSS
2,276,587 1,024,265
891,41 I 440,843
9,i 98,000 4,i I I ,810
307,000 157,544
I 28,900 44,981
513,364 95,785
193,112 56,373
326,758 290,974
1,300,000 578,510
103,199 113,204
39,900 14,144
i5,278,23i 6,928,433
2,756,969 1 ,ioa,920
1,055,562 31,297 3.1
446,527 5,684 1.3
4,254,612 I 42,802 3.5
222,523 64,979 41.2
54,539 9,558 21.2
89,727 @,OW (6.3)
102,201 45,828 al .3
I 57,083 (133,891) (46.0)
650,000 71,490 12.4
43,829 (69,375) (61.3)
12,679 (1,465) (10.4)
7,089,282 160,849 2.3
1,446,476 337,556 30.4
Financial Status Report - Page Eight
SANITATION ENTERPRISE
Revenues
Total operating revenue for the sewer operations fund is $2.9 million through December. This reflects a
$158,000 or 5.8% increase from the prior year. The 2.6% increase in charges for current services is
mainly due to new customers. The largest portion of the Other Revenue category is a one-time
termination payment of $41,670 received on the refinancing of an investment agreement. The
additional $20,000 in other revenue is for sewer lateral connection charges which are up $17,500 from
the prior year due to the increase customers
Expenses
Expenses are $1.8 million through December which is $136,000 less than the prior year’s expenses.
The decrease is mainly due to lower payments for Encina Plant services than the prior year. The
Encina Wastewater Authority changed the method of billing during 1998-99 to reflect actual expenses
rather than basing payments on the budgeted amounts.
SEWER OPERATIONS FUND
DECEMBER 31.1998
FY 1997-9
BUDGE
ta I T
Y-T-D
12/31197
Y-T-D c
12/31/98 DIFFERENCE DIFFERENC
REVENUES:
CHARGES FOR CURRENT
SERVICES
INTEREST
OTHERREVENUES
TOTAL OPERATING REVENUE
5,268,0(3
450,oa
30,oc
5,748,oc
2,545,698 2,612,507 66,809
197,465 224,129 26,664 13.
2,575 67,388 64,813 2,517.
2,745,738 2,904,024 158,286 5.
EXPENSES:
STAFFING 71 a,38 13 289,386 333,958 44,572
INTERDEPARTMENTAL SERVICES ia4,3i 4 99,219 96,952 C&267)
OUTSIDE SERVICES & OTHER 431,73 18 50,749 99,952 49,203
MATERIALS AND SUPPLIES 92,98 18 21,373 36,850 15,477
DEPRECIATION I ,200,oa IO 628,177 600,000 (28,i 77)
ENCINA PLANT SERVICES I ,725,oa IO 867,280 660,000 (207,280)
CAPITAL OUTLAY ai ,07 ‘9 10,952 6,103 ww
MISCELLANEOUS EXPENSES 38,6C IO 15,559 12,733 cmx)
TOTAL OPERATING EXPENSES 4,472,lC 12 1,982,695 I ,846,548 (136,147)
OPERATING INCOME/LOSS I ,275,as 18
-
763,043 1,057,476
2.
15.
(2.:
97.
72.
(G
(44.:
(ia.:
(6.!
REDEVELOPMENT AGENCY
Revenues
Revenues for the redevelopment agency for the first half of the year are $665,000 which is comparable
to prior years revenue at the same time of $657,000.
Exoenditures
Through December, expenditures and encumbrances for the redevelopment agency totaled $919,000.
Since most rents are encumbered for the entire fiscal year the available balance for rents is only 20%.
The first debt payment was made in September 1998 and the next payment is not due until March
1999. Although the available balance is low, it is comparable to the prior year’s available balance of
43%.
CARLSBAD REDEVELOPMENT AGENCY
OPERATIONS AND DEBT SERVICE FUNDS
DECEMBER 3111998
tEVENUE
‘ROPERTY TAXES
NTEREST
/llSCELLANEOUS REVENUES
FY 1998-99 Y-T-D
BUDGET 1213 1 I98
1,200,000 560,651
77,000 22,785
I i 8,300 82,448
1,395,300 665,884
Y-T-D
12/31/97 DIFFERENCI
553,970 6,68
28,894 (6,lOE
74,457 7,99
657,321 a,56
iXPENDlTURES
;TAFFlNG
NTERDEPARTMENTAL SERVICES
tENTALS & LEASES
IEBT EXPENSE
IUTSIDE SERV/MAINT./MISC.
TOTAL EXPENDITURES
iXCESSOFREVENUESOVER
EXPENDITURES
FY 1998-99
BUDGET
156,049
97,494
127,312
I ,098,500
121,841
1,601,196
(205,896)
TOTAL
COMMITTED
i2/3i/98 (I)
66,121
46,260
I 01,884
667,851
37,207
919,324
(253,439)
AVAILABLE 0
BALANCE AVAILABL
i2/31/98 i2/31/98 (2
89,928 57.
51,234 52.
25,428 20.
430,649 39.
84,634 69.
681 ,a72 42.
1) Total committed includes expenditures and
encumbrances.
2) Amount available would be 43.3% if funds were
spent at the same pace as last year
January 15, 1999
EXHIBIT 3
To: Finance Director
From: Assistant City Engineer
SIDEWALK INSTALLATION PROJECT ON LA COSTA AVE FROM ECR TO CALLE MADERO
In March of 1998, City Council considered the matter of installing the missing sidewalk
improvements adjacent to thirteen undeveloped properties located on the north side of La Costa
Avenue between El Camino Real and Calle Madero. At the time, Council approved the following
motion:
“That the missing sidewalks on the north side of La Costa Avenue should be installed by
land owners as development occurs and in the mean time the issue be referred to staff to
find a possible interim solution for the installation of sidewalks.”
Staff completed its review of the potential interim solutions and recommends that Councilproceed
with the installation of permanent Portland cement concrete (PCC) sidewalks in lieu of interim
asphalt concrete IA C) side walk improvements.
The cost differential between permanent and interim improvements is approximately $10,000
($150,000 vs. $140,000). This small differential is due to the fact that the bulk of the
construction costs (grading, utility re-locations, retaining walls, design engineering and project
management) are the same for either interim or permanent improvements. The only cost
differential is in construction materials which amounts to approximately $10,000. However, this
initial cost savings will likely be negated, over time, by the additional cost required to maintain AC
sidewalk improvements.
Other factors considered by staff were aesthetics, handicap access, liability exposure and
neighborhood disruption. The installation of permanent sidewalk improvements will present a more
aesthetically pleasing appearance over a patchwork of PCC and AC improvements. Also with
permanent improvements the neighborhood will not be subject to further disruption in pedestrian
movements when the remaining thirteen vacant properties develop. Both alternatives would be
made to comply with Federal ADA requirements. Liability exposure would be acceptable for either
solution, although, standard PCC improvements subject the City to slightly less risk than
temporary AC improvements.
Staff also considered other interim sidewalk improvement alternatives consisting of decomposed
granite paths and narrowed AC pathways. Such alternatives avoid the need for utility relocation
and retaining walls and would considerably reduce project costs. However, these non-standard
approaches do not comply with ADA requirements and would subject the City to increased liability
exposure. For this reason, staff could not recommend either of these two interim alternative
solutions.
David Hauser
Assistant City Engineer
January 15, 1999
TO:
FROM:
CITY MANAGER
Administrative Services Direc
- REVIEW OF GENERAL FUND BALANCES
When the City Council adopted this year’s operating budget they asked that the staff return at a later date
with additional information on a variety of topics. One of those topics was the status of the General Fund
balance, and options for the use of existing funds.
General Fund Balance
The general fund for any governmental organization is the place where revenues and expenditures related
to the general function of that agency are recorded. Revenues typically received by the general fund
include sales, property and transient occupancy taxes, fees for services such as development processing,
licenses, permits, a variety of fees, fines, and interest. Expenditures typically include public safety
services, infrastructure maintenance services, library and recreation services, community development
services, and administration.
In governmental accounting, the undesignated fund balance is a rough measure of the unobligated
resources available to support services and public improvements provided by a specific fund. This balance
gives the Council the ability to react to opportunities and emergencies as they might occur. In a sense it is
a savings account that can be used to provide services and facilities for those who live, work and play in
Carlsbad.
The City of Carlsbad’s undesignated general fund balance as of June 30, 1998 was $30.4 million. This is
the total accumulation of revenues over emenditures (savings) during the past 12 years. 1987 was the last
year in which the total fund balance had
been reserved or obligated for specific
purposes. As some may recall, this was
the first year under the growth
management plan. In this year and several
subsequent years, revenues from
development declined due to the
significant reduction in development
activity, and remained low until the
beginning of the economic recovery in the
early 1990s.
Undesignated Fund Balance
35,000
30,000
25,000
20,000
15,000
10,000
5,000
Between 1988 and 1994 the Council was
able to hold the general fund balance
relatively steady, ranging between $5
million and $9 million. During these
years, the Council allowed city staffing levels to decline, held service levels constant, used very
conservative fiscal controls, and consistently operated the City in the black. Expenditures were held below
revenues in spite of tight economic times.
-
About 1995 the San Diego region began to recover from the recession. Although the City’s revenues
began to grow, the City Council and staff maintained the conservative approach to budgeting that worked
so well through the recession. Growth in revenues exceeded the growth in expenditures through 1998 as
the recovery peaked. By the end of 1998 the
undesignated (available) fund balance had
grown to just over $30 million. General Fund Balance
As a Percent of theTotal Operating Budget
Another way to look at the fund balance is to
see it as a percentage of the total budget for
the fund. In the case of the general fund, the
rule of thumb is that the Council should
retain a minimum of 10% to 25% of the total
annual operating budget in reserves. The
general fund balance remained within this
range between 1988 and 1994, and only
began to increase as the recession began to
ease and the local economy began to recover.
The current economic boom is expected to
begin to slow in 1999 and 2000. If this
occurs, the rate of growth in general fund
revenues will decline.
60%
50%
40%
30%
20%
10%
0%
The Council’s plans to open the new library, increase the number of active parks, expand street systems,
and improve safety service levels will cause expenditures to grow into the foreseeable future. Although it
is expected that Carlsbad will remain in the black, the positive gap between revenues and expenditures
should shrink substantially in the next few years.
Potential Uses for General Fund Balance
The Council’s interest in the general fund balance was focused on two issues - how did the current balance
accumulate, and how can the balance be used to benefit those who live, work and play in Carlsbad. The
above discussion addresses how fund balances accumulate. The question of how the balance could be used
is quite another issue.
Over the years, staff has suggested that the Council consider using money from the fund balance carefully.
One of the cautions has consistently been to avoid spending one-time money (money from the fund
balance) on programs that will have ongoing costs. This advice has been based on the idea that dependable
revenue streams should be used to fimd ongoing costs. The Council should not enter into long term, costly
programs without having some certainty that funds will be available to finance those programs in the
future. Council has applied this revenue and expense matching concept many times in deciding when to
proceed with capital projects (such as the new library), by withholding final approval on moving forward
on a project that will have significant operating costs until the general fund revenue stream had
strengthened sufficiently to support the costs of the program.
As the Council considers the use of general fund revenues it should be aware that government is beginning
to wake up to the realization that the “business” of government is far behind private business in
recognizing the true cost of operations. This is particularly true in the area of depreciation of fixed assets.
The City owns numerous buildings, streets, sidewalks, storm drains, lights and signals, worth tens or even
hundreds of millions of dollars, all of which have limited useful lives. No city currently properly
depreciates its fixed assets or recognizes the cost of depreciation as a cost of doing business. However,
public assets do have limited lives, and there is a need to replace these assets at some point in time. The
financial world is giving serious consideration to rules that would require governments to recognize the
cost of depreciation of its futed assets, and to recognize that replacement of those assets will be a
significant burden at some point in the future. An example of this can be seen in the recent report from the
legislative analyst to the state legislature suggesting that as much as 6% of the state’s annual general fund
revenue be set aside to fund depreciation and replacement of public assets.
Carlsbad has an opportunity to be a leader in running government like a business by establishing a system
that would set aside a portion of its existing general fund reserves, and recognize the cost of depreciation in
the annual budget each year. These funds would be used by the City to create a maintenance and
replacement fund.
When the staff presents the mid-year budget update in January there will be an opportunity for the Council
to consider the allocation of money from the general fund balance to a variety of projects and to consider
the issue of properly accounting for the use of public assets.
Proposition H
An important limitation on the use of general fund money is found in section 1.24 of the Carlsbad
Municipal code - Proposition H, the general fimd expenditure limitation. This code section limits the
Council’s ability to expend more than one million dollars of general fimd money for major capital projects.
Expenditures of more than $1 million of general f’und money on any construction project, land acquisition
or long term lease require the approval of a simple majority vote of the Carlsbad electorate.
There have been three instances where the voters of Carlsbad have been asked to grant the ability to
expend more than $1 million on a major capital project. The first was in 1983 when the electorate
approved the expenditure of more than $1 million on the construction of the new public safety center. The
second was in 1987 when the voters approved the purchase of Hosp Grove. And, the third was in 1989
when the voters approved the construction of a variety of recreational facilities, including the public golf
course.
The City’s expenditure limitation language was drafted in 1982 following the economic turmoil resulting
from the approval of Proposition 13 in 1978. Its intent was to recognize that in the post-prop-13 era
resources would be more limited than before, and that decisions to expend large sums of money on capital
projects and real estate acquisitions would significantly impact the citizens of Carlsbad. The controls
established in section 1.24 were an effort to create a dialogue and an opportunity for public review and
comment prior to the expenditure of these funds. Although this process creates some major economic
disadvantages for the City particularly where the purchase or real estate is being considered, the goal of
public participation in local government processes is as important today as it was in 1982.
Although the intent of this section may still be valid, the effects of dollar limitations imposed and the cost
of holding elections have changed dramatically. What could have been purchased or constructed for $1
million in 1983 and what can be purchased or constructed today are very different. This change in buying
power is not recognized in the present wording of the code. However, the change in buying power has
affected the Council’s ability to use general fund money to purchase, construct and improve public
facilities such as parks, libraries and streets.
The limitation has also contributed to the growth of the general fund balance. Prior to 1982 the City
typically used surplus funds to enhance public facilities and infrastructure. After the imposition of the
spending limit, with the exception of the three projects mentioned above, the Council has been precluded
from using these funds in any significant way to benefit the residents and visitors to Carlsbad.
Summary and Staff Recommendation
In January 1999 the Council will receive the mid year budget update. At this time the Council will have
the opportunity to discuss a variety of issues, including the status of the general fund balance. After
hearing the staff report on all budget issues including changes in schedules for capital projects, funding
alternatives for the 800 MHz radio system, community activities tinding, and a variety of appropriation
issues, Council may wish to consider alternatives for the use of the general fund balance. These
alternatives may include:
a) The appropriation of fimds to support certain programs and projects
-
b) Directing staff to prepare a report on the creation of a system to recognize depreciation and
replacement costs of general fixed assets
c) Directing staff to prepare a report on the spending limit, and alternatives for seeking voter approval of
key projects or modifications to the existing language
Staff would be happy to provide any additional information that would help in making decisions on the use
of general fund revenues and existing fund balances.
EXHIBIT 5
Background
The City of Carlsbad currently provides community outreach and public information
services through a variety of departmental staff who, in addition to their regular work
activities, are also tasked with writing press releases, preparing departmental
newsletters, coordinating groundbreakings and dedications and producing public
workshops to obtain citizen feedback on projects and services. In the City
Manager/City Council offices, the Senior Management Analyst (currently vacant) is
assigned these functions, along with responding to general media inquiries and
providing assistance to other City departments. While delivering community outreach
and public information services in this way has been fairly effective for the City of
Carlsbad in recent years, increasing demands from the public and the organization for
information about City programs and services emphasize the need to dedicate a
specific resource to this program. Creating a focal point for community outreach efforts
and public information activities will result in the more efficient use of existing resources
and increase the effectiveness of these efforts. The City Manager is recommending the
creation of the position of Public Information Officer to focus the City’s outreach and
information efforts.
Development of a city community outreach/public information function is consistent with
the City Council’s Strategic Goal of enhancing the educational opportunities for all
segments of the community.
Proqram Activities
The City Manager in conjunction with the Leadership Team, and through feedback from
the City Council, will need to work with the Public Information Officer to develop a
Communication Plan. A clear description of the goals, objectives, duties and
expectations is vital to the success of any communication program.
Proposed Program Goal:
l Development of a City Communication Plan that will:
l Encourage positive customer contact with city employees and achieve
customer service goals.
l Examine the process of government decision making and identify how
residents can participate fully.
l Inform citizens/customers about the critical issues in public policy
which confront local government.
Proposed Program Objectives:
1. Evaluate all existing City publications to ensure that Carlsbad’s
citizens/customers find the information they need to use municipal services in
City publications.
2. Develop and maintain a city database of general City information. This might
include basic demographic information, media contact list, stakeholders in the
community and other frequently used information.
3. Act as a professional resource to City Departments in the following areas:
dedications and groundbreakings, press releases and development of
publications.
4. Develop and administer a citizen/customer satisfaction survey to test
citizen/customer satisfaction with the City’s level of service and infrastructure
maintenance so baseline data can be gathered and used in setting customer
service goals. The survey can also be used to gather information on level of
citizen/customer awareness of the issues confronting local governments.
5. Participate in the development and ongoing enhancement of the City of
Carlsbad’s web page.
Fiscal Impact
The cost to fund the Community Outreach/Public Information Program is outlined
below.
l Salary (Senior Management Analyst range): $48,800 - $67,100 annually
l Benefits: $14,000 - $16,000 annually
l Computer: $6,000 (one time cost)
l Miscellaneous program costs: $5,000
l Total First Year Program Costs: $73,800- $84,100
EXHIBIT 6
December 15, 1998
TO: CITY MANAGER
FROM: Finance Director
UPDATE ON FUNDING OF COMMUNITY ACTIVITIES
Backoround
Prior to 1995-96, Council had appropriated and distributed $75,000 per year to various
community groups within the County to provide human and social services to Carlsbad
residents. The process used to distribute those funds is set forth in Council Policy Statement
#51. In 1995-96, this process was put on hold as Council wished to review other possible
methods of distributing these funds. The Mayor appointed a subcommittee to look into this
issue. The sub-committee and staff brought an agenda bill to Council on April 9,1996. At that
time, Council directed staff to return with documents to establish a foundation which would
focus on library programs for now but would be able to be expanded for other general
community uses in the future.
The establishment of a Library foundation was put on hold when a ballot measure was created
which would increase the sales tax to fund public libraries. That measure was not approved,
however, a similar measure is scheduled to be placed on the ballot for the next election (March
1999). In addition, the Friends of the Library are creating a library foundation on their own.
In September 1997, staff returned to Council with an agenda item which gave Council several
options which could be taken regarding the community activity funds. At that meeting, Council
directed staff to set aside, in a separate fund, the money that had been accumulated in
previous years ($225,000) and continue to budget $75,000 per year to be contributed to the
fund. When sufficient money was available, then Council would be able to use the interest
earned in the special fund to provide money to community activity groups. The method by
which the funds would be distributed was to be decided in the future.
Financial Status
Council appropriated $75,000 in fiscal years ‘96, ‘97, ‘98 and ‘99. All of those monies totaling
$300,000 have been set aside in a special fund which generates its own interest. Interest
earned to date is $15,000 making the balance in the fund total $315,000.
Options Available
1. Some Council members have expressed a desire to accelerate the funding of this program
to provide a total of $1 ,OOO,OOO. This would require an appropriation from the General fund
balance of $685,000. The interest from the fund would then be used to finance grants to
community service groups on an annual basis. Interest would amount to approximately
$55,000 per year.
-
If Council wished to proceed in this manner, they would need to appropriate the additional
$685,000 and direct staff to investigate the options available for administering the annual
grant awards.
2. The program could continue as is with $75,000 per year being set aside until the fund
reaches $1 ,OOO,OOO. This would take approximately 9 more years. No grants would be
given during this time period.
3. The program could be eliminated and the money returned to the General fund to finance
other programs as Council desires.
LISA HILDABRAND
c: Administrative Services Director
h EXHIBIT 7
Backaround
On August 20, 1997, the City Council authorized the Mayor to execute a two (2) year
agreement with the Carlsbad Convention and Visitor’s Bureau (CCVB) for promoting
tourism and providing visitor services. November 1, 1998, marks the beginning of year
two (2), of the City’s two year contract with CCVB. The approved 1998-1999 contract is
for $243,000 ($120,000 for operation of the Visitor’s Center, and $123,000 for other
promotional services).
Year one (1) of the 1997-l 998 City/CCVB contract was originally approved and
budgeted for $235,000. That amount was increased to $303,000, on October 21, 1997,
as a result of a request by CCVB to expand their services and enhance their operations.
At that time, it was recommended that program enhancements for the second year of
the contract be brought to Council for review at a later date. On October 22, 1998, the
City received a request from CCVB proposing new contract changes that would increase
the 1998-1999 contract and budget amount to $370,000. Although this request
represents an increase from the previous contract of $67,000, it would require an additional appropriation of $127,000 in order to adjust the approved and budgeted 1998-
1999 contract amount. The following tables show a comparison of the original 1997-
1998, and 1998-1999 contract amounts, with the 1997-1998 revised contract amount
and the new CCVB proposed 1998-l 999 contract:
TABLE 1
TABLE 2
Backaround (continued)
CCVB is requesting that the 1998-1999 contract amounts be reviewed by the City
Council in consideration of a number of program “initiatives” they are proposing (see
Exhibit 2). If Council would like to add any of these items to the existing contract, it
would increase the total amount allocated for the contract by the dollar amounts shown
in Table 2 (above).
Fiscal Impact
Funds for community promotion, totaling $243,000 were appropriated in the 1998-l 999
operating budget. If Council concurs with CCVB’s request, another $127,000 will need
to be appropriated for the second year of the contract. Staff recommends that Council
appropriate any additional funds from the Contingency Account. The Contingency
Account available balance is approximately $2.7 million.
/__.--
,,&L’ - ,: I’ it ,-’
EXHIBIT 8
I. h
/:;- June 23, 1998 ,,‘(-. / / r’ , ‘.S ‘.
TO: CITY MANAGER \
FROM: Recreation & Park Planning Manager
,c. ‘1 , ,‘.’ I .-
&II Receive
For tbehformation of the:
F ! cm COUNCIL
’ “Asst.CM -cA- Da-City
CARLSBAD BOY’S & GIRL’S CLUB FEE
At the June 16, 1998 City Council meeting, staff was responding to questions from
Council regarding the City’s Stay N’ Play Program and the possibility of collaborating
with the Carlsbad Boy’s & Girl’s Club to run a Summer Youth Program together. In
particular, the question rose as to whether or not the Club would charge a fee for
youngsters to participate in their program. Based on a conversation with the Boy’s &
Girl’s Club faculty, staff was informed that the Club did charge a $20 membership fee to
everyone. However, Council indicated that the Club had informed them that they did
not charge a fee, therefore staff was requested to investigate this discrepancy and
report back with clarification regarding this issue.
Staff contacted Jan Giacinti, Executive Director of the Boy’s & Girl’s Club regarding the
fee and she informed us that several months ago she had attended the City Council
Public Hearing regarding “Join Hands-Save A Life.” During that meeting Jan was asked
by Council if the Boy’s & Girl’s Club required a fee for youths to participate, and she
indicated to Council that the club did not charge a program fee at that time. However,
since that Council meeting, the Boy’s & Girl’s Club Board of Directors have changed
their policy and now, effective July 1, 1998, all youngsters will be required to pay an
annual $20 membership fee. The purpose of this fee is to allow the kids to use the club
and take part in all the activities free of charge with the exception of Specialty Kids
Camp and some field trips. This membership fee will also be used as a way to offset
some of the incurred program expenses. Scholarships will also be available for those
that need financial assistance so that no youngster will be turned away.
In closing, as I indicated to Council, the City’s Stay N’ Play Program and the Boy’s &
Girl’s Club will not be running a joint program this summer. All parties agree that both
organizations need more time working together to adequately prepare for a quality
program. Hopefully, this clears up some of the confusion regarding the fee situation
and if there are any additional questions, please feel free to contact me.
.+7&D
KEN PRICE
c: Assistant City Manager
Finance Director
Recreation Supervisor II - Bettin
EXHIBIT 9
November 11, 1998
TO: CITY MANAGER
VIA: RECREATION AND PARKS PLANNING MANAGER
FROM: Recreation Supervisor II - Harding
CARLSBAD SCHOOLS REPORT REGARDING: STAY ‘N’ PLAY
BACKGROUND
In June, as part of the budget review process staff was requested by City council to
research the need for after school programming in all elementary schools in the City of
Carlsbad. The following report details the findings of staffs research and offers options
for Council to consider regarding the need for after school programs like Stay ‘N’ Play
within the City’s elementary schools.
DISCUSSION
In conducting this research, staff spoke with the principals of each school and or School
District representatives for the various districts. The survey included a series of questions
inquiring about existing after school programs, if any; the need for additional
programming, and potential interest in the Recreation Department’s Stay ‘N’ Play
program. (attachment 1)
Staffs concerns focused on three basic elements: first was percentage of students that
needed an after school program but couldn’t afford the existing program. Second was the
school administrations’ interest in and support of the potential new program; and third
was the desire to avoid direct competition with any existing after school program. Stay
‘N’ Play has been designed to provide a low or no cost alternative for the students that
can not afford to take advantage of existing programs such as Schools Out, the YMCA or
the Boys and Girls Club offerings. The specific results of each survey are identified on
attachment 2, and below is a brief summary from each school..
Carlsbad School District - The Carlsbad School District is serviced by School’s Out.
This is a program that is contracted for by the District and provides care from 6:00 am
until school starts and from the end of school until 6: p.m. The program costs $125 per
month per person and a portion of the enrollment fees are returned to the school district
in exchange for use of on site school facilities.
Aviara - The Principal felt that Stay ‘N’ Play would compete with the School’s
Out program and other programs offered by the PTA. If there were no existing
programs at Aviara she would welcome the City’s program.
Buena Vista - Stay ‘N’ Play is scheduled to begin in January of 1999. Staff has
been working with the Mr. Aranda and teachers in preparation of the programs
start in January.
1
Hope - Mrs. Murray felt that the School’s Out program was meeting the needs of
her student population. She also expressed concern that the kids who might need
the Stay ‘N’ Play alternative did not live close enough to the school to walk home
from the program.
Kelly - The principal felt that the current School’s Out program was meeting the
students needs.
Magnolia - Mr. Boone is very interested in the program and stated that 46% of
the students are enrolled in the federal lunch program and would benefit by
having an after school program designed for them.
Pine/Jefferson - Stay ‘N’ Play is currently in it’s fourth year and has over two
hundred children enrolled per session. Mr. Ahle has been very supportive of the
program.
Encinitas School District - Staff spoke to Sheila Brooks in the District office who
provided us information regarding La Costa Heights, Mission Estacnia and Olivenhain
Pioneer elementary schools. The District representative expressed that none of the
schools would be interested in the Stay ‘N’ Play program. Additionally, she said that La
Costa Heights and Mission Estancia have after school programs provided by the YMCA
and that Olivenhain Pioneer has a program provided by the district. Staff was not given
permission to speak with the individual school principals and was referred to the district
office for the information.
San Marcos Unified School District - Staff contacted La Costa Meadows Elementary
School and was referred to the District Office. Numerous calls were made to the District
expressing the desire to discuss the opportunity with them however, no response was ever
received.
RECOMMENDATIONS
After reviewing the research, staff offers the following options for Council’s
consideration:
l Continue Stay ‘N’ Play programs at Pine / Jefferson and Buena Vista Elementary.
Currently the Buena Vista program is only funded for six months in this fiscal year.
Funding for the Stay “N’ Play program will be increased by $12,700 in FY 99/2000
in order to accommodate a full school year of programming at Buena Vista
elementary School and the termination of CDGB funding for Pine/Jefferson. The
total cost of this option is $12,700.
l Consider requesting funds in the 2000/01 budget for expansion of Stay ‘N’ Play to
Magnolia Elementary School in September of 2000. The cost of an additional
programmed site would be $15,300 in part time staffing and supplies. In addition, at
this point a new full time Recreation Specialist, at a cost of $26,300 would be
required to supervise and oversee all three after school sites . ( There will be an
$11,700 reduction in part time salaries.) Total fiscal impact to add a Stay ‘N’ Play site
at Magnolia will be $29,600 for FY 2000/01.
2
\ ice 3< , .1)
FISCAL IMPACT
The fiscal impact to expand the Stay ‘N’ Play program varies based on the options
outlined in the recommendations Option 1 maintains the current programming levels at
Pine/Jefferson, by allocating $8,000 from the general fund that is currently supplied
through CDGB. The CDGB funds are intended as seed money for programs and thus
after four years of existence, the Recreation Department will be requesting full funding
of the Stay ‘N’ Play program in the budget process. Additionally, it increases the
general fund allocation for Buena Vista by $4,700 in order to fund a full school year of
the Stay ‘N’ Play program for that site. The total fiscal impact of Option 1 is $12,700.
Due to the tremendous popularity of the program, staff will keep a close watch on the
progress of Stay ‘N’ Play and evaluate the possibility of adding one site at Magnolia
Elementary School in FY 2000/01. The total potential cost of expanding this program to a
third site is approximately $29,600. It includes a full time Recreation Coordinator
position to oversee all three sites; and $15,000 in hourly salaries and supplies.( The
Recreation Specialist position will be offset by an $11,700 reduction in part time
salaries.) The costs are based on an average of seventy five additional participants at the
Magnolia site. The total fiscal impact of this option is $29,600.
CONCLUSION
Staff is excited about the future possibilities for the Stay ‘N’ Play program and our
ability to meet the needs of North West Quadrant residents. By working collaboratively
with the Police Department, the Arts Department, the School District and other
organizations, we can continue to improve the quality of life in Carlsbad.
Robin P. Bettin
cc: Assistant City Manager
Finance Director
Senior Accountant
Recreation Supervisor - Special Events/ Stay ‘N’ Play
STAY ‘N’ PLAY / AFTERSCHOOL RESEARCH PROJECT
School:
Principal:
School District:
1. What is the student population?
2. How many children currently receive assistance from the free or reduced lunch
program?
3. Does your school currently have a Schools Out or any Afterschool program?
If yes, is it a paid program?
Do you know the cost of the program?
What are the hours of operation of the program?
Do you know how many children are enrolled in the program?
4. What would be the interest level of your school in participating in the Stay ‘N’ Play
program?
HIGH MEDIUM LOW
5. Would your school be able to supply the space that is necessary to run Stay ‘N’ Play
program?
6. Would there be access to other on site facilities; Computer Lab Library -
Cafeteria Playground Other
7. What would you like the hours of operation of the Stay ‘N’ Play program to be
offered at your school?
8. If the Stay ‘N’ Play program was offered at your school, what areas would you like to
be emphasized, and/or adapted into your sites program? : ; _ 1
Attachment 1
,
.
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m h
1 -
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-
- I / 1 , , ! - - L I i e !. : f - r i ?. i 7 r : i -
0 F s i!. 3 -
--
January 18,1999
- EXHIBIT 10
TO : CITY MANAGER
FROM : Fleet Maintenance Superintendent
AVAILABILITY OF FORD CROWN VICTORIAS
As you know the City of Carlsbad currently utilizes the Ford Crown Victoria for its
police sedans.
Fleet is expecting to receive sixteen (16) new Crown Victorias sometime in the spring
of 1999, as in the past three years we have participated in a cooperative purchase
with the City of San Diego and several other County cities.
It is Fleets intention to continue to purchase the Crown Victoria through the year 2000.
The Fleet Sales Manager at Dixon Ford has indicated that the Ford Motor Company has
given no indication to discontinue the production of the Ford Crown Victoria police sedan.
Fleet will continue to monitor the availability of the Crown Victorias. Should Ford in the
future decide to discontinue production, we should have ample notification to evaluate
our options for a replacement vehicle.
If you have any questions, please call me at 931-2192.
LARRY WILLEY
LWW:sw
c: Public Works Director
Finance Director
Purchasing Officer
June 24, 1998
EXHIBIT 11
‘\;-;;, *,-d,,’
TO: CITY MANAGER 1: GP 0. g c?; 1,-L ,’ K.. .” .-y “y, 9 , 7¶w.’ ., -.._ ~:../-’
VIA: RECREATION AND PARK PLANNING MANAGE
From: Park Development Coordinator
FRIENDS OF CARRILLO RANCH FUNDING ALTERNATIVES
This report is in response to the “Funding Alternatives” for the development of Carrillo
Ranch as proposed by Alan Kindle of the Friends of Carrillo Ranch (refer to attached
excerpt). There are three alternatives proposed which are very similar. They essentially
suggest revising the adopted 98-99 CIP by, 1) moving funds forward from FY 2001-2002 to
the current FY, 98-99, and 2) subdividing the current phasing (developed through the
Master Plan process) further into smaller pieces based on the “priority” of the park elements.
Although the City routinely phases park projects, the phases are typically large enough
portions of the overall project, built with the intent of providing a partially complete
recreational product that the public can use and benefit from. The current phasing proposed
in the Master Plan follows this concept.
Staff does not recommend the further subdivision of the Phase II of the Carrillo
Ranch (as proposed in the Master Plan) for the following reasons:
1. The smaller the phases, the less cost effective the project becomes. In most cases,
the City pays a premium on relatively smaller projects (25-75% more) because of
multiple contractor start up costs and higher unit prices.
2. Phasing causes difficulties as contractors must integrate their work with previous
work by other contractors. This has the potential of leading to disputes, increasing
costs.
3. Multiple phasing is more time consuming for staff administratively, increasing cost
to the project and causing other projects to be delayed.
4. Phasing costs usually are not divided equally (as proposed in Mr. Kindle’s
“Alternative 2”). The first major development phase (in this case, Phase II, as
outlined in the Master Plan) will require proportionally greater funds because
infrastructure for build out of the park must be constructed in up front.
For example, in Mr. Kindle’s suggested projects (refer to “Alternative 3”), he did not
include design, administration, grading the main entry road and parking lot, installation of
utilities (that go in the road and parking lot), road and parking lot lighting, etc. These are all
items that would need to be constructed in conjunction with the suggested “priority projects”. -- .--_ .I ,.C^YCI(.--
-ii; -‘-
A
pg. 2 of 2; Carrillo funding
There may be one exception to the recommendation above allowing for an interim
phase. In speaking with Mr. Kindle it appears that one of his suggested goals is to allow for
organized group tours of the Ranch, including the hacienda (currently occupied by the
caretaker). In order to accomplish this, the new caretaker’s residence would need to be
constructed at the location of the old equipment shed (as proposed in the Master Plan) so
that the caretaker and his family could vacate the hacienda. After this improvement is made
and the surrounding roads complete (Melrose Ave. and Carrillo Way are close to
completion), limited and accompanied group tours could conceivably occur. Non-
supervised groups or general public would still be prohibited from visiting the Ranch.
Should the Council wish to pursue this alternative, an interim phase could be
implemented to provide:
1) Minimal utilities (water, electrical, sewer, phone)
2) Minor grading for pedestrian access
3) New caretaker residence
4) Public restroom at original caretakers cottage
5) Minor building renovation (for safety reasons)
This alternative would be roughly $600,000.
CONCLUSION
Staff feels the current phasing strategy outlined in the Master Plan, whether it be left in FY
2001-2002 or accelerated as a whole, is the most logical and cost effective development
approach. Should the Council want to promote limited access to the Ranch (and hacienda),
staff suggest consideration of the interim phase above.
Mark Steyaert
attachments: Alan Kindle alternatives
Master Plan phasing and cost estimate
c: Assistant City Manager
_ ?-m/r’ l /I- I’” , •l~*vLV f Funding Alternatives t l - .’ ,
(1) Advance the $3,764,000 for FY OO/Ol and FY 01/02 to FY
98/99. Then spend it down from year to year, taking the highest priority Phase Two projects in descending order.
(2) Divide the $3,764,000 into five equal parts of about $750,000
annually beginning with FY 98199.
(3) For FY 98/99 “cherry pick” the most important Phase Two
>>
>>
>>
>>
>> construct the elegant main gates and pilasters - a real
show piece for the community ($200,000)
> > plus 20% contingency ($125,000)
projects, e.g.,
pave the main entry road ($97,000)
pave the parking lot ($133,000)
re-hab the old caretaker’s cottage, including restrooms
($112,000)
re-hab the machinery shed’for new caretaker’s quarters,
thus allowing the hacienda to be vacated ($96,000)
> > TOTAL = $766,000
Repeat the process for FY 99/00.
Leo ,-rrillo Ranch Master Plan @
I Tub/e 4-8 . Cost Esfimafe Summary
Peremiter Wall, Pilasters 8 Fencing
Utilities 8 Grading
Landscaping 8 Irrigation
Historical Buildings/Restoration
$260,500
$44,000
850,000
8145,000
D. Contingency 20% $99,900
SUB TOTAL $599,400
Il. SOCT COSTS
4. Design
Architect, Landscape Architect
Civil Engineer, Soils
B. Inspecti&/Admln/resting
PHASE I TOTAL
8% $47,952
SUB TOTAL $95,904
$695,304
A. Infrastructure/Parking
Utilities 8 Grading
B. Historical Buildings/New Const.
C. Hardscape/Furnlshings
D Landscape 8 Irrigation
$503,000
!$1,072,575
8331,202
F. Contingency 20% $526,404
SUB TOTAL $3,158,426
~*. DesifY Architect, Landscape Architect
Civil Engineer, Soils
6. Inspection/Adminflesting
10% 83 15,843
8% 8252,674 I SUB TOTAL $568,517 1
PHASE II TOTAL $3,726,943
A. Historical Buildings/New Const.
A. Design
Architect, Landscape Architect
PHASE III TOTAL $1,605,295
cxtmo TOTAL (PHASES 1.11 a Ia) $6,027,542
4-73 PA’ .J 2
-8 Section 4 - Master :~n Recommendations -. -
.-
-+-?d PI-74
“ur
Phase 3 . Interior restoration of cantina, carriage house, feed storage, stables, f water tank, foundry, storage shed, and completion of wood barn/
theater . Construction of new restroom building at chicken house . Construction of the City-wide and community trail linkages by
the City and the adjacent development . Restoration of original old entry bridge . Restoration of the original corral fencing . Restoration of arbors at the visitor center, and between the haci-
enda and the cantina . Exterior improvements of the hardscape areas associated with
Phase 3 improvements (paving, site furnishings, barbecue, fish
pond) . Creation of the botanical garden . Installation of landscaping and irrigation associated with Phase 3
improvements
Fu6ricufion Contmcfing Recommendafions
New Buildings/Interpretive Elements
Separate contractors will be used to construct any of the new build-
ings and proposed interpretive elements. It is recommended that the
contracts for fabrication of the interpretive elements, such as fencing
lighting, etc., be negotiated with a single qualified fabricator, rather
than through competitive bidding. This is a very specialized field in
the fabrication of furniture, architectural elements and graphics. Few
firms have the broad range of skills necessary to be able to deliver on
time and budget. f
Contracts for construction of the interpretive elements should go
through the Ranch foundation (if established), rather than as a sub-
contract to another contractor. Experience proves that this provides
more control and balance over the interpretive content and site pri-
orities.
Required StaJf and Responsibilities
The development and operations plan provides many examples of
staff responsibilities and tasks that will need to be completed or per-
formed everyday at full operation. A strong core of experienced staff
should be considered in implementing the interpretive plan.
Curator
It is recommended that a full-time, academically and professionally
qualified curator/director be hired for the implementation of the master
plan. The duties of the curator should include, but not be limited to:
the creation and management of interpretive programs; supervision
and coordination of architectural and exhibit design consultants; sched-
uling and supervising use by lessors for special occasions; planning
of fundraising events; pursuit of grants, applications and recruiting;
training and scheduling of docents; scheduling and supervision of
tour groups, especially from schools; acquisition of artifacts and memo-
rabilia, and subsequent collection management; photographic research
and acquisition; security oversight; preparation of proposed budgets;
liaison with the City of Carlsbad on preservation matters; and effec- t ’
tive interfacing with the on-site caretaker and those providing main-
tenance.
A ,-. EXHIBIT 12
Major Future Civic Projects For Mid Year Analysis (12/98)
Current
CIP Schedule Fundina Amount Ooeratina costs Est. Revenue
Business Park Recreational Facility 2000-2001 Park Fees 2,700,OOO 200,000
Totals 2,700,OOO 200,000
Cannon Lake Park
Passive park (at buildout) After 2008 PFF 947,000 90,000
Totals 947,000 90.000 0
Purchase
Development
Community Center
2003-2008
After 2008
2003-2008
PIL Fees 2,380,OOO
PFF 990,000
PFF 3535,000
Totals 8.905.000
110,000
310,000 130,000
420.000 130.000
Hosp GrovelBuena Vista Lagoon
Includes passive expansion of Maxton
Brown Park
After 2008 PIL Fees 3,355,ooo 200,000
Totals 3,355.ooo 200,000 0
Larwin Community Park
Passive, steep slopes 2000-2001 PFF 2,090.000 162,000
Totals 2,090,000 182,000 3,000
NE Quadrant Park (no location)
Purchase & develop 15 acres for ballfields After 2008 PIL Fees 4,725.OOO 310,000
m Poinsettia Park Phase II
Community renter 20003-Build-cut PFF 6,461,OOO
Totals 8.481 .OOO
550,000 185,000
550.000 185.000
Zone 19 Park (Aviara Park)
Phase I (develop 15 acres)
Phase II (develop 9 acres)
Phase Ill (Community Center)
After 2008
After 2008
After 2008
PFF 2,158,500 225,000
PFF 1,308,OOO 135,000
PFF 3,535,ooo 100,000 10,000
Totals 7,001,500 560,000 10,000
Swimming Pool After 2008
Phase II (develop 20 acres) After 2008
Phase III (develop 10 acres) After 2008
PFF 5,300,000
PFF 2,828,OOO
PFF 1,414,ooo
Totals 9.542.000
660,000 330,000
300,000
150,000
1.110.000 330.000
Phase II 2001-2002
Phase III 2003-2008
PFF 3,764,OOO 460,000
PFF 1,622,OOO 110,000
Totals 5386,000 570,000 85,000
Veteran’s Memorial Park 2003 and later CFD#l 15,769,OOO 970,000 Unknown
Unknown
Totals 4,725,OOO 310,000 Unknown
Major Future Civic Projects ,_ r Mid Year Anal& -Continued A
‘City facillfies ,;, I
Public Works Service Center
As in 1998-99 CIP:
Timing Funding
1998-99 CFD#l
Amount Operating costs
4,168,OOO 80,000
As Proposed:
Building #I
Building #2
1999-2000 CFD#l 9,168,OOO 80,000
After 2008 CFD#l 4,000,000 40,000
Sewer Fees 500,000
Totals 13,668,OOO 120,000
Cole Library Option “C”
As in 1998-99 C/P:
Remodel
Expansion
Proposed Options:
Timina Fundina Amount
1999-2000
After 2008
CFD#l 1,873,862
CFD#l 4,505,ooo
PFF
Totals
8,660,OOO
16.036.662
Funding
Source
Alt. A Alt. B Ah. C Alt. D
Renovation Renovation + New Constr. Interim lmprov
(30,680 sq ft) (45,155 sq ft) (45,155 sq ft) (24,352 sq ft)
PFF 3,900,000 7,900,000 7,650,OOO 1,900,000
CFD#l 4,000,000 4,000,000 4,000,000
Totals 7.900.000 11.900.000 11.650.000 1.900.000
Increase in operating costs from 1998-
99 budget to operate both libraries at
full staffing 1,537,ooo 1,684,OOO 1,684,OOO 1,522,OOO
Major Future Civic Projects ror Mid Year Analysis - Continued
Park Development Projects
Pros and Cons
Business Park (NW Quadrant)
Pros Cons
Land is available Not needed for growth management
Development is occurring Funding from Zone fees. Development would require loan.
Needed because of development - public demand
_. Pine School (NW Quadrant)
Pros Cons
Demand for community center is high Not needed for growth management
Site may become available soon
LaGin Park-(NE Quadrant)
Pros Cons
New housing (Calavera Hills) may create need - growth Passive park (tot lot, picnic, basketball, tennis courts)
manaaement
i Doesn’t reauire much master olannina 1 Doesn’t address need for communitv center or ball fields
1 Minimal public demand at present
1 EMF’s
Pros
NE Quadrant Park (NE Quadrant)
Cons I New housing (Calavera Hills) will create need - growth Location not yet identified
manaaement
Doesn’t require much master planning
Need by citizen’s for ballparks and active areas
Aoorooriate site mav be more difficult to find in future
Funded by PIL. Insufficient funds. Would require loan.
Poinsettia Park - Phases II & III (SW Quadrant)
Pros Cons
Need a community center in the SW quadrant Operating Costs
Efficiency (staff in one location) A lot of !§ in one park/quadrant, citizens may complain
Needed because of development - public demand
Hiah demand for ball fields I Completes park - site erosion problem would be
addressed I I
Better supervision & protection of property if fully staffed 1
Provides a wide ranae of facilities
- 4
Major Future Civic Projects ror Mid Year Analysis - Continued
Pros
Zone 19 Park (SW Quadrant)
Cons
1 Access is available 1 Not needed for arowth manaaement -7
Development is occurring - lights up
Needed because of develoDment - public demand
High demand for ball fields’ ’ I
I
Additional Comments: Three phases (24.25 acres)
Alga Notte Park (SE Quadrant)
Pros Cons
High public demand for pool Timing of access not sure/ Bressi Ranch (2005?)
Need a SE park for growth management Operating costs of pool
Large site (PH I - 20 acres, pool, PH II 13 acres, ball No public demand for this specific park - no development
fields)
Would help meet needs in the industrial corridor
Additional Comments: Community Center traded for pool.
Leo Carrillo Park (SE Quadrant)
Pros Cons
Site is available- Development is occurring Passive park - no demand
Needed for growth management
Provides additional civic site for special events
Preserves historical Dark