HomeMy WebLinkAbout1999-09-14; City Council; 15385; Financial Results Fiscal Year Ended June 30, 1999-
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CITY OF CARLSBAD - AGENDA BILL w -
AB# 15. 3 g5 TITLE:
FINANCIAL RESULTS FOR THE
MTG. 09-I 4-99 FISCAL YEAR ENDED CITY ATTY. b’Ln.
DEPt. FIN JUNE 30,1999 CITY MGR. %
RECOMMENDED ACTIONS:
1. Accept the Financial Status Report for the fiscal year ended June 30, 1999.
2. Adopt Resolution No. 99-3is approving the reduction of the amount of the General fund
loan needed for the property acquisition at 3363 Tyler Court.
3. Adopt Resolution No. cf? -3/g approving an appropriation of $17,775 from the
Council Contingency for the Aquatics Program to extend the community pool hours of
operation.
ITEM EXPLANATION:
Financial Results:
The financial results for the General fund, the Water Enterprise fund, the Sewer Enterprise fund, and
the Redevelopment Agency are presented in the attached report for the fiscal year ended June 30,
1999 (Exhibit 4).
The 1998-99 fiscal year books are closed and the audit is under way for the Comprehensive Annual
Financial Report (CAFR) statements. Although the financial statements are subject to audit
adjustments, they are not expected to vary materially from the numbers presented here.
The General fund ended the year with an available balance of $36.5 million. Revenues totaled $63.3
million which was $1.5 million higher than projected. Expenditures were about equal to projections
although still below budget by $5.2 million. The increase in revenue is primarily attributable to the
strong local economy, with the most noticeable improvement in property, sales and transient
occupancy taxes. Other revenue sources also showed a strong increase during the year from the
receipt of one-time payments for condemnation funds from a developer and a life insurance premium
refund. The graph on the next page shows the effect of the stronger local economy on General fund
revenues during the past few years.
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Page 2 of Agenda Bill # I5! 385
Historical General Fund Revenue
go- 91- 92- 93- 94 95- 98- 97- 98-
91 92 93 94 95 98 97 98 99
Fiscal Year
In total, Capital Project funds received revenues totaling $66.7 million during the fiscal year, while incurring $53.1 million in expenditures. Some of the major capital projects that the City expended
funds on during the year included:
l the new Carlsbad library
l the widening of La Costa Avenue
l the westerly extension of Cannon Road
l the widening and realignment of Ranch0 Santa Fe Road
l the Cannon Road/Interstate 5 interchange
l the acquisition of land for the Business Park Recreational Facility
l the Cannon Road transmission main
l the westerly extension of Poinsettia Lane
l the widening of Palomar Airport Road
0 several pavement management projects
0 continued development of the Carlsbad Municipal Golf Course.
The Water Enterprise had an operating income of $1.5 million for the year, which was $636,000 lower
than anticipated. Due to a drier winter and an increase in the customer base, water sales were $1.5
million higher than last year. However, even with the drier winter, water usage was less than
expected, thereby contributing to water sales that were below the estimated revenue for the year.
Sewer Operations had an annual operating income of $1.6 million for the fiscal year. Total enterprise revenues were higher than the previous year due to an increase in the customer base.
Expenditures were also higher than the previous year due in large to the payoff of the 800 MHz lease during the year and an increase in Encina plant service expenses.
Revenues to the Redevelopment Agency total $1.4 million for the year ended June 30, 1999, which
is $49,000 more than the prior year. The Agency’s primary source of revenues are property taxes
which increased by $38,000 or 3.1% this year. Expenditures for the Agency were below budget by
$93,000 due to the postponement of several feasibility studies to the following year.
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Page 3 of Agenda Bill # t 5”. 3 2s
Additional information regarding the financial results for all of these funds is available in the
attached report (Exhibit 3).
Other Items:
Revision in Fundina of Tyler Court Property
On July 20, 1999, the City Council approved a loan from the City’s General fund to the
Redevelopment Agency for $948,923. The loan was for the acquisition of property at 3363 Tyler Court; a 75 unit rental property to be used for affordable housing purposes.
Several years ago, the City received $502,949 from the retirement of the 1983 Single Family
Revenue (SFR) bond issue. Council directed staff to set the funds aside for affordable housing
purposes in the future. Staff is now requesting that these funds be used to offset the loan to the
Redevelopment Agency for the Tyler Court apartments. Thus, the loan amount will be reduced to
a maximum of $445,974 and a payment of $502,949 (the amount designated for affordable
housing purposes) will be made to the Redevelopment Agency from the City’s General fund.
Extension of Communitv Pool Hours of Operation
The City Council has expressed their desire to offer more Citywide opportunities for community
pool access. Since the addition of another aquatic facility is not an available option at this time,
staff recommends extending the hours of operation of the City’s community pool (see attached
memo). This can be accomplished in the following manner:
l Increase the weekend recreation and lap swim time by one hour per day. This would add
an additional 104 hours of operation throughout the year at a cost to the City of $4,160.
l Increase the weekday recreation and lap swim time by one hour per day during the
school year. This would add an additional 194 hours of operation throughout the year at
a cost to the City of $7,760.
l Extend the adult lap swim time in unused lanes, during the weekday evenings, when the
pool is being used by NCA, NSA or CHS. This would add an additional 1.75 hours per
day during the school year for a total of 339.5 additional hours of operation throughout the
year, for a portion of the pool. The cost to the City would be $5,855.
Staff is requesting that $17,775 be appropriated out of the Council contingency account for
personnel, maintenance and operation costs to allow for this extension of pool hours.
FISCAL IMPACT:
Tvler Court
Payment will be made in the amount of $502,949 from the General fund and the designation for
Affordable Housing will be reduced by the same amount. The maximum loan amount from the
General fund to the Redevelopment Agency will be reduced to $445,974.
Aauatic Proaram
An appropriation in the amount of $17,775 is requested from the Council’s contingency account.
The balance in the contingency account is $4 million.
Page 4 of Agenda Bill # 15, 38 5
EXHIBITS:
1. Resolution No. ci9 -3 /L approving the reduction of the amount of the General fund loan
needed for the property acquisition at 3363 Tyler Court.
2. Resolution No. 99 -313 approving an appropriation of $17,775 from the Council
Contingency for the Aquatics Program to extend the community pool hours of operation.
3. Financial Status Report for the Fiscal Year Ended June 30, 1999.
4. Memo from Aquatics Supervisor providing recommendations for increasing usage of the swim
complex.
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RESOLUTION NO. 99-312
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, APPROVING
THE REDUCTION OF THE AMOUNT OF THE
GENERAL FUND LOAN NEEDED FOR THE
PROPERTY ACQUISITION AT 3363 TYLER COURT
WHEREAS, City Council Resolution No. 99-264 approved a loan
from the General fund to the Redevelopment Agency in the amount of
$948,923 for property acquisition at 3363 Tyler Court; and
WHEREAS, the City’s General fund has $502,949 designated for
future affordable housing purposes.
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 the maximum amount of the loan from the General fund to
the Redevelopment Agency for the purchase of the Tyler Court apartments be
reduced to $445,974.
3. That a payment of $502,949 from the General fund to the
Redevelopment Agency is authorized for the property acquisition at 3363
Tyler Court, and
4. That the designation for Affordable Housing in the General fund be
reduced by the same amount.
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PASSED, APPROVED AND ADOPTED at a regular meeting of
the City Council on the 14 th day of September , 1999, by the following
vote, to wit:
AYES: Council Members Lewis, Nygaard, Finnila & Kulchin
NOES: None
ABSENT: None
ABSTAIN: Council Member Hall
CLAUDE A. LEWIS, Mayor
ATTEST: .
r Clerk
KAREN R. KUNDTZ, Assistant City Clerk (SEAL)
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RESOLUTION NO. 99-313
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROVING AN APPROPRIATION OF $17,775
FROM THE COUNCIL CONTINGENCY FOR
THE AQUATICS PROGRAM TO EXTEND THE
COMMUNITY POOL HOURS OF OPERATION
WHEREAS, the City Council has expressed a desire to increase
the availability of the community pool for the citizens of Carlsbad; and
WHEREAS, the community pool could extend their hours of
operations during specific times of the year at an added cost of $17,775; and
WHEREAS, the City’s Council Contingency account has available
funds.
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 $17,775 is hereby appropriated from the Council Contingency
account to the Recreation-Aquatics program for the costs associated with the
extension of hours of operation at the community pool.
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PASSED, APPROVED AND ADOPTED at a regular meeting of
the City Council on the - 14 th day of September , 1999, by the following
vote, to wit:
AYES: Council Members Lewis, Nygaard, Finnila, Hall & Kulchin
NOES: None
ABSENT: None
ATTEST:
(SEAL) KAREN R. KUNDTZ, Assistant City Clerk
Financial Status Report
Prepared by the Finance Department
June 30,1999
INTRODUCTION
The City of Carlsbad’s fiscal year 1998-99 books are closed and the audit is under way for the
Comprehensive Annual Financial Report (CAFR). Although the financial statements are subject to audit
adjustments, they are not expected to vary materially from the numbers presented in this report.
OVERVIEW
Carlsbad’s General fund
revenues were projected
to increase by $5.8 million
over the actual 1997-98
results. Actual revenues
for the General fund
exceeded expectations by
$1.5 million. At $63.3
million, the General fund
revenues were $7.3
million, or 13.1% higher,
than the previous year.
The “Signs of the Times”
summary highlights some
specific revenue sources
and their variance
compared to the previous
fiscal year. The trend
found in these indicators
are representative of the San Diego Region as a
whole. According to the
Greater San Diego
Chamber of Commerce,
“The USD Index of
Leading Economic
Indicators for San Diego
fell into a dive the last
four months of 1998.
This year the Index not
only stopped falling, but has increased each
month since January.“’
PrOp$/TW?S
In addition to the current strong local economy, the State of California finalized their 1999-2000 budget.
The City will receive approximately $400,000 next year to partially replace property taxes that were shifted
’ “March 1999 San DiegoRijuana Economic Indicators Show Continued Prosperity”, Greater San Diego Chamber of Commerce
(June 1999), pp. 1,6.
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Financial Status Report 2
to schools back in the early 90’s, and to reimburse cities for booking fees paid. In addition, there is a
potential for additional law enforcement, library and flood control grants.
Further detail about Carlsbad’s General fund revenues can be found in this report, as well as an overview
of the General fund expenditures for the fiscal year ended June 30, 1999. In addition, the financial status of
the Water and Sanitation Enterprises and the Redevelopment Agency will be addressed.
GENERAL FUND The General fund ended 1998-99 with an unreserved balance of $36.5 million. Revenues totaled $63.3
million, which was $1.5 million higher than projected. Expenditures were about equal to projections,
although still below budget by $5.2 million.
GENERAL FUND
FISCAL YEAR 1998-99
UNRESERVED -UNDESIGNATED FUND BALANCE
Unreserved - Undesignated Fund Balance 7/l/98 (Per CAFR*)
Revenues
Operating Transfers In
Expenditures Residual Equity Transfers In/Out (Net)
Other Changes in Reserves and Designations
Unreserved - Undesignated Fund Balance 6130199
l CAFR stands for the Comprehensive Annual Financial Report
Actual
30,444,458
63,337,985
7,500
(54,971,986)
(1,640,585:
(630.198;
36,547,174
Taxes
The City’s largest source of tax revenue is sales tax, followed by property tax, and transient occupancy (or
hotel) tax.
For the year, sales tax receipts totaled $17.1 million, which is 15.6% over last year’s collection. New auto
sales, department stores and restaurants make up the largest economic segments of sales taxes for the
City. The biggest factor in this increase in sales tax revenues was a 20.2% increase in sales activity at Car
Country Carlsbad. With consumer confidence remaining extremely high, spending on cars, restaurants and
durable goods continues to grow. This confidence level, coupled with the fact that this is the first full year of
sales at the Carlsbad Company Stores, has brought in an additional $400,000 in sales tax revenue. The
City should continue to see an increase in their sales tax revenues in the next fiscal year, due to an expansion of the Carlsbad Company Stores upcoming in the fall of 1999. A final factor in the sales tax
growth was the opening of Legoland in March 1999. Again with Legoland, the City will continue to recognize sales tax growth during the upcoming year as the City will have the first full year of sales tax
revenue from Legoland in 1999-2000.
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Financial Status Report 3
Property tax revenues of $14.2 million are up 14% over the previous year. According to the County of San
Diego Assessor’s Office, property values in Carlsbad increased by 15% on the 1998-99 tax roll. Property
taxes received by the City are based on this assessed value. For fiscal year 1999-2000, assessed values
have increased by 19.7%. This is the largest percentage increase of any city in the county. In addition to
new development within the City, “strong housing demand, fueled by good economic conditions and a
limited supply of available homes, is pushing both home sales and prices to record levels.“2
Tax Revenue
Fiscal Year Comparison
SALES TAX 16%
PROPERTY TAX
Transient occupancy taxes (TOT) total
approximately $7 million year-to-date, which is
$964,000, or 16%, above the prior year’s
amount. The majority of this increase is
attributable to the Four Seasons which was
open for only six months of the prior year. Also
adding to the increase in TOT, was the opening
of the Grand Pacific Palisades Resort and Hotel
in March 1999, located above the Carlsbad
Flower Fields, with its lobby fronting Legoland.
The Grand Pacific has 90 hotel rooms and 71
time-share units. During the month of May
1999, the City received its first full month of
TOT from the Grand Pacific. Four more hotels
plan to open in Carlsbad over the next 18
months, which will continue to add to the City’s
TOT revenue. An April 1999 “Trends in the
Hotel Industry” report produced by PKF
Consulting also indicated that during the first
four months of 1999 North San Diego coastal
room rates rose by 9.5%, while the occupancy rate for the same hotels rose .7%.3
TRANSIENT TAX
FRANCHISE TAX
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0
in millions
OActuais 97-98 mAchats 98-99
Franchise tax revenues rose to $2 million, which is 14%, or $241,000, over last year’s revenues. Franchise
fees come from public utility sources such as SDG&E, trash collection franchises, and cable franchises
conducting business within City limits.
Development Fee Revenues Engineering fees, which are fees received for improvement and grading plan check and inspection
services, total $1.7 million, a decrease of $552,000, or 24%, from fiscal year 1997-98.
Building permit revenues collected year-to-date were $2.5 million, a 20.5%, or $430,000, increase in
revenues compared to last year. Building permits are issued to cover the cost of regulating construction
activities. This allows the City the means to protect overall community interests. During March 1999, the
City set a record for the number of residential permits issued in one month. Then in May 1999, the City
broke the newly set record by recording 437 housing permits in one month. For the year, permits were issued for 2,206 new dwelling units, compared to 1,402 during the previous fiscal year. Not since the mid-
1980’s have so many new dwelling units been permitted in one annual period. Total commercial/industrial
building permits issued this year comprised 1,141,200 commercial, and 1,084,900 industrial square feet.
This was approximately on par with last fiscal year’s production of 900,000 square feet of commercial and 1.6 million square feet of industrial permitting.
2 California Department of Finance, finance Bulletin. July 1999, ‘Economic Update”, p. 1.
3 PKF Consulting, April 1999, “Trends in the Hotel Industry”. p. 1-2.
Financial Status Report 4
Building department fees total $1.7 million
for the year. This is an increase of 18.9%,
or $263,000, more than fiscal year 1998.
Building department fees finished the year
right on target, when compared to
projections.
Planning fees for the City of Carlsbad
were down once again this year by
$360,000, or 32.3%. Planning fees of $754,000 we re behind projections by
16.3%, or $146,000.
In total, development fee revenues were
$6.7 million for the year. This is
$219,000, or 3.2%, less than development revenues collected in the prior year.
Other Revenues
Vehicle license fees (VLF) total $3.3 million, which is an increase of 9.9% over 1998. Vehicle license fees
exceeded projections by 4.5%, or $141,000. 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.
The State reduced the VLF this fiscal year by 25%, but replaced the reduction in fees with State General
fund money. Due to provisions in the 1999-2000 State budget, the fee will be automatically cut by an
additional iO% in the 1999-2000 fiscal
year; a year earlier than originally
anticipated. The State General fund will
also replace the revenues lost by this rate reduction. In addition, efforts calling for
the complete elimination of the fee have
dissipated amongst State legislators; a
potential threat to one of our larger
revenue sources.
Other Revenue
Fiscal Year Comparison
VEHICLE LICENSE
FEES
up 10%
BUSINESS
LICENSES
Development Fee Revenue
Fiscal Year Comparison
ENGINEERING
BUILDING PERMITS
BUILDING DEPT
FEES
PLANNING
500 1000 1500 2000 2500 3000
in Thousands
1 q lActuals 97-98 WActuals 98-99 1
Business license revenues total $1.7 million, an increase of 8.3%, or $134,000,
from fiscal year 1997-98. New licenses
issued for the year totaled 1,389 and
renewed licenses for the year totaled
4,227. These figures compare to 1,585
new licenses and 4,015 renewed licenses
last year.
Recreation fees total $1.1 million and are 8.4% higher than in fiscal year 1997-98.
Instructional classes, adult and youth sports, and special events make up the
majority of the recreation fees.
RECREATION
FEES
AMBULANCE
FEES
FINES &
FORFEITURES
0 500 1000 1500 2000 2500 3000 3500
in Thousands
I 0 Actuals 97-98 WA&a!.?, 98-99 1
Financial Status Report 5
Ambulance fees totaled $858,000 and are ahead of last year’s total by 14.8%, or $111,000. This increase
is due to an increase in fees that went into effect in January 1998, as well as an 80% increase in our
Medicare reimbursement rate that 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 $804,000 year-to-date, which is 80.9%, or $360,000, more than fiscal year
1997-98. This increase in revenues year-over-year is mainly due to new legislation that became effective
July 1, 1998. This legislation returned to cities the portion of moving violation fines which were diverted to
the State during the recession.
Income from investments and property for the year total $2.2 million, and is 9.5% more than last year’s
revenues of $2 million. Although interest rates were lower during the past fiscal year, the average daily
cash balances were higher, helping to increase the City’s investment income.
Interdepartmental charges were essentially equal to the prior year at $1.7 million.
Other revenue sources total $1.2 million; $705,000 higher than the previous fiscal year. In December 1998,
the City received $500,000 in condemnation funds from a developer which resulted in a $500,000 increase
in estimated revenues as well as a similar increase in appropriations. In addition, in July 1998 the City
received a $100,000 refund for life insurance premiums paid out of the General fund. .
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Financial Status Report 6
GENERAL FUND
REVENUE COMPARISON
FISCAL YEAR 1998-99
ACTUAL REVENUE
REVENUE ESTIMATE
REVENUE SOURCE 1997-98 1998-99
TAXES
PROPERTY TAX $12,410,095 $14,181,000
SALES TAX 14,817,057 16,500,OOO
TRANSIENT TAX 6,046,092 6,900,OOO
FRANCHISE TAX 1,713,526 1,873,OOO
BUSINESS LICENSE TAX 1,603,744 1,700,000
TRANSFER TAX 835.530 720.000
TOTAL TAXES 37.426.044 41.874.000
INTERGOVERNMENTAL
VEHICLE LICENSE FEES 2,970,189 3,124,OOO
HOMEOWNERS EXEMPTIONS 234.323 200,000
OTHER 275.841 276.000
TOTAL STATE SUBVENTIONS 3.480.353 3.600.000
LICENSES AND PERMITS
BUILDING PERMITS 2,094,523 2,200,000
OTHER LICENSES 81 PERMITS 1.208.600 I ,230.OOO
TOTAL LICENSES & PERMITS 3.303.123 3.430.000
CHARGES FOR SERVICES
PLANNING FEES 1,113,186 900,000
BUILDING DEPT. FEES 1,393,661 1,650,OOO
ENGINEERING FEES 2,297,314 1,756,OOO
AMBULANCE FEES 747,425 800,000
RECREATION FEES 976,190 I ,046,OOO
OTHER CHARGES OR FEES 592.441 603.000
TOTAL CHARGES FOR SERVICES 7.120.217 6.755.000
FINES AND FORFEITURES 444,597 800,000
INCOME FROM INT & PROPERTY 2,001,779 2,250,OOO
INTERDEPARTMENTAL CHARGES 1,734,505 I ,650,OOO
OTHERREVENUESOURCES 484,184 1,500,000
TOTAL GENERAL FUND 553994.802 61.859.000
ACTUAL ACTUAL COMPARED ACTUAL COMPARED
REVENUE TO ESTIMATE TO ACTUAI
1998-99 DIFFERENCE AS % DIFFERENCE AS “(
bl4,196,095 $15,095 0.11% $1,786,000 14.39%
17,129,474 629,474 3.81% 2,312,417 15.61?1
7,010,249 II 0,249 1.60% 964,157 15.95%
I ,954,186 81,186 4.33% 240,660 14.04%
I ,737,850 37,850 2.23% 134,106 8.36%
l.O8Q&g 360.646 50.09% 245.116 29.342
43,108.500 1 s234.500 2.95% 5.682.456 15.16%
3,264,81& 140,818 4.51% 294,629 9.92%
251,204 51,204 25.60% 16,881 7.20%
355.723 79.723 28.89% 79.882 28 96%
3.871.745 271.745 7.55% 391.392 11:25%
2,524,063 324,063 14.73% 429,540 20.51%
1.302.622 72.622 5 900, 94.022 7.782
3.826.685 396.685 1 I :57% 523.562 15.85%
753,570
1,656,345
1,745,558
858,113
1,057,717
538.948
6.610.251
804,258
2,192,392
1,734,646
1,189,508
63.337.985
(146,430) -16.27% (359,616) -32.31%
6,345 0.38% 262,684 18.85%
(10,442) -0.59% (551,756) -24.02%
58,113 7.26% 110,688 14.81%
11,717 1.12% 81,527 8.35%
164.0521 -10.62% (53.493) 9 03 0, I
1144.749) -2.14% (509.966) :7:16%
4,258 0.53% 359,661 80.90%
(57,608) -2.56% 190,613 9.52%
84,646 5.13% 141 0.01%
(310,492) -20.70% 705,324 145.67%
I .478,985 2.39% 7.343.183 13.11?4
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Financial Status Report 7
Expenditures
Total General fund expenditures for fiscal year 1998-99 equaled $55 million. This was $5.2 million less
than the budget of $60.1 million. Expenditures are shown on a budgetary basis which means that they
include all amounts actually spent during the year plus any amounts to be spent which would be coming out
of the 1998-99 appropriations (such as money encumbered at the end of the year and appropriations which
are going to be continued into the new year).
The following table identifies the allocation of contingency funds during the fiscal year. For the year,
$2,397,040 has been authorized out of the contingency account for the following:
CONTINGENCY ACCOUNT
USE OF FUNDS
RESOLUTIOI
EXPLANATION AMOUNT DATE NUMBER
Adopted Budget
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
Energy Consulting Services
Information Systems Salary Adjustments
Integrated Transportation Program
CCEA MOU Salary Adjustment
CPOA MOU Salary Adjustment
Fire MOU Salary Adjustment
California Accidental Release Prevention Program Contract
Web Site Development Contract
Public Information Officer
Carlsbad Convention and Visitor’s Bureau Contract Adjustment
Grad Night Contribution
Building Inspection Services
$3,943,700
(255,235)
(450,000)
(250,000)
(125,000)
(57,693)
(65,000)
(10,000)
(100,000)
(17,000)
(85,406)
(278,380)
(182,826)
(223,500)
(5,000)
(30,000)
(10,000)
(127,000)
(5,000)
(100,000)
06/16/98
09lOll98
09101/98
1 O/05/98
1 O/20/98
10127198
11 /I 0198
1 l/16/98
12/08/98
12117198
01/12/99
03102l99
03109l99
03123199
04/06/99
04/13/99
0412Ol99
04120199
06108199
06122199
98-19
98-241
98-24:
98-31’
98-34i
98-35:
98-361
98-37
98-40!
98-41r
99-02:
99-071
99-07r
99-09
99-l I’
99-12r
99-141
99-141
99-20)
99-23’
I~ENDING BALANCE $1,546,660
A detailed schedule of General fund expenditures is provided on the following page.
Financial Status Report 8
GENERAL FUND
EXPENDITURE STATUS BY DEPARTMENT
FOR THE YEAR ENDED JUNE 30,1999
ACTUAL ON A OVER/ % OVER/
BUDGET BUDGETARY (UNDER) (UNDER)
EPT DESCRIPTION FY 1998.99 BASIS BUDGET BUDGET
DLlCYlLEADERSHlP GROUP
CITY COUNCIL 218,940 213.240 (3.790) -1.7%
CITY MANAGER 1.390,428 ‘I 9254,234 (138,194) -9.8%
CITY CLERK 408,872 425.812 (80,880) -12.5%
CITY ATTORNEY 847,393 848,435 (958) -0.1%
CITY TREASURER 138,832 107,018 (31,814) -22.9%
TOTAL POLICY/LEADERSHIP 2,990,285 2,848,739 (233,526) 0.1%
DMINISTRATIVE SERVICES
FINANCE 1,384.914 1,289,719 (75,195) -5.5%
PURCHASING 529,180 491,812 (37,348) -7.t1
HUMAN RESOURCES 1550,239 1,241,479 (308.780) -19.9%
RECORDS MANAGEMENT 1.319,500 1.319,500 0 0.0%
TOTAL ADMINISTRATIVE SERVICES 4,703,013 4,342,510 (421,303) -8.8%
UBLIC SAFETY
POLICE 12.149,281 11.889.585 (459,696) -3.8%
FIRE 10,787,919 9.882.445 (925,474) -8.8%
TOTAL PUBLIC SAFETY 22,937,200 21,552,030 (1,385,170) -6.0%
OMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT ADMIN 583.214 511,938 (51,278) -9.1%
HIRING CENTER 80.070 78,891 (3,179) -4.0%
GEOGRAPHIC INFORMATION 287,538 183,448 (84,092) -31.4%
ECONOMIC DEVELOPMENT 148.297 120,189 (28,108) -19.0%
COMMUNITY PROMOTION (CCVB) 489,180 489,180 0 0.0%
PLANNING 2,518,898 2,332,581 (184,337) -7.3%
BUILDING 1.740.573 1.732,448 (8,125) -0.5%
TOTAL COMMUNITY DEVELOPMENT 5,805,770 5,446,651 (359,119) -6.2%
OMMUNITY SERVICES
PARK PLANNING & RECREATION 3,029,300 3,029.219 (81) 0.0%
SENIOR PROGRAMS 355,915 280,851 (75,284) -21.1%
LIBRARY 3.523,150 3,409,403 (I 13,747) -3.2%
CULTURAL ARTS 398,751 396,191 (589) -0.1%
TOTAL COMMUNITY SERVICES 7,305,116 7,115,464 (189,852) -2.6%
UBLIC WORKS
PUBLIC WORKS ADMINISTRATION 720.954 853,220 (87,734) -9.4%
ENGINEERING 4,858,454 4.780.851 (97,803) -2.0%
PARKS 2,443.837 2.289,172 (174,485) -7.1%
STREETS & TRAFFIC SIGNALS 2,793.389 2,489,389 (323.980) -11.8%
FACILITIES 1,914,213 1,892,992 (221.221) -11.8%
TOTAL PUBLIC WORKS 12,730,627 1 I ,945,424 (885,203) -7.0%
ON-DEPARTMENTAL 8 CONTINGENCY
OTHER NON DEPARTMENTAL (a)
OPERATING TRANSFERS OUT
CONTINGENCY
TOTAL NON-DEPT 8 CONTINGENCY
3TAL GENERAL FUND
520,781 388,710 (142.051) -28.9%
1.835.500 1,835,500 0 0.0%
1.548.880 0 (1.548,880) -100.0%
3,710,921 2,022,210 (1,888,711) -45.5%
60.133.712 54,971,029 (5,162,684) -8.6%
(a) Other non-departmental expenses include Community Assistance, property tax administration fees, and other
non-departmental items.
. ’
-
Financial Status Report 9
WATER ENTERPRISE
Revenues
Total Water revenues are $16.9 million for the fiscal year. This is an 11% increase over fiscal year 1997-
98. The main reason for this increase is water sales which are $1.5 million, or 14.3%, ahead of last year.
The increased sales are due to new customers and the fact that the 1998-99 winter months were drier than
the 1997-98 winter months. A rate decrease of 10 cents per unit went into effect on May 15, 1999, but the
true affect of this reduction will not be seen until the following fiscal year. The increase in the customer
base is also reflected in the higher “charges for current services” revenue figure. The decrease in interest
revenue is the result of lower cash balances in the Water Enterprise fund during the year. Eight million
dollars was transferred from the Water Enterprise fund to the Water Capital Replacement fund to support
the construction of future water projects, lowering the cash balance substantially.
Exbenses Operating expenses in the Water fund total $15.4 million, which is 13.5%, or $1.8 million, more than last
year. One of the main reasons for the increase was the payoff of the 800MHz lease made in January
1999. The Water operations portion of the payoff was $416,000. Another factor for the increase is a
$996,000 increase in purchased water that is the result of additional customers and higher usage due to the
drier 1998-99 winter months. MWD/CWA ready-to-serve charges fluctuate based on the amount of water
sales made by the agency. Operating income for the Water Enterprise amounts to approximately $1.5
million for fiscal year 1998-99.
WATER ENTERPRISE FUND
JUNE 30,1999
CHANGE FROM
BUDGET MD YTD YTD 98 TO PERCENT
FY 1998-99 813Ol98 8/3Ol99 YTD 99 CHANGE
LEVENUES
WATER SALES 13,300,000 10,420,509 11,908,130 1.487,621 14.3%
CHARGES FOR CURRENT SERVICES 3,245,200 3.362,684 3.617,854 254,970 7.6%
FINES, FORFEITURES & PENALTIES 210,000 183,752 215,213 31,461 17.1%
INTEREST 725,000 780,504 640,493 (140,011) -17.96
OTHERREVENUES 555,000 456,262 497,571 41,309 9.1%
TOTAL OPERATING REVENUE 18,035,200 l&203,911 16,879,261 1,675,350 11.0s
iXPENSES
STAFFING
INTERDEPARTMENTAL SERVICES
PURCHASED WATER
MWDICWA READY-TO-SERVE
UTILITIES
OUTSIDE SERVICES/MAINTENANCE
GENERAL OFFICE EXPENSE
MATERIALS AND SUPPLIES
DEPRECIATION
CAPITAL OUTLAY
MISCELLANEOUS EXPENSES
TOTAL OPERATING EXPENSES
2,380,942 2,146,198 2.290,492 144,294 6.7%
891,411 869,336 875,173 5,637 0.74
9,198,OOO 7,694,636 6,890,445 995,609 12.64
463,000 356,907 597,356 240,449 67.4%
128,900 89,698 116,893 26,995 30.0%
435,609 264,323 215,580 (66,743) -24.2%
239,487 163,367 263,266 99,699 61.2%
326,758 427,205 350,274 (76,931) -18.0%
1,300,000 1,157,021 I .300,000 142,979 12.4%
519,199 116,746 477,591 360,645 309.19
42.900 69,609 29,038 (40,571) -58.30,
15,926,206 13,575,240 15,406,108 1,830,862 13.59
IPERATING INCOME/LOSS 2,108,994 1,628,065 1.473,153 (155,512) -9.59
17
-
,(
Financial Status Report 10
SANITATION ENTERPRISE
Revenues
Income to the Sanitation Enterprise totaled $6 million for the 1998-99 fiscal year, which is $182,000, or
3.1%, higher than the previous year. Charges for current services, the largest revenue source in the enterprise, totaled $5.5 million and exceeded last year by $162,000. Although a rate reduction went into
effect on May 15, 1999, this decrease did not adversely affect charges for total current services for the
year. The increase in the customer base pushed charges for current services above prior year figures.
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 other revenue is primarily for sewer lateral
connection charges that are up $15,000 from the prior year due to an increase in customers. The decrease
in interest revenue is the result of lower cash balances in the Sanitation Enterprise fund during the year.
Almost six million dollars was transferred from the Sanitation Enterprise fund to the Sanitation Capital
Replacement fund to support the construction of future sewer projects, lowering the cash balance
extensively.
Exoenses
Expenses for the Sanitation Enterprise total $4.4 million, which is $800,000 greater than the prior year’s
expenses. One of the main reasons for the increase was the payoff of the 800MHz lease made in January
1999. The sewer operations portion of the payoff was $416,000. In the previous fiscal year, Encina Plant
service expenses were based on budget amounts, while in the current year, the payments are based on
actual expenses. Adjustment were also made in the current year based on an audit of prior year estimates.
These two factors created an increase in current year expenses of $219,000. In addition, sewer operations
saw an increase in outside services due to several consultants that were hired during the year to identify
and rank critical sewer deficiencies, to perform a business process redesign, and to identify safer and more
innovative ways of excavating sewer taps deeper than 15 feet.
SANITATION ENTERPRISE FUND
JUNE 30,1999
CHANGE FROM
BUDGET YTD YTD YTD 96 TO PERCENT
FY 199689 6130196 6136199 YTD 99 CHANGE
EVENUES
CHARGES FOR CURRENT SERVICES 5,268,OOO 5373.360 5.535.738 162,378 3.0%
INTEREST 450,000 436,597 395,439 (41,158) -9.4%
OTHERREVENUES 30,000 27,685 88,515 60,830 219.7%
TOTAL OPERATING REVENUE 5,746,OOO 5,637,642 6,619,692 162,050 3.1%
XPENSES
STAFFING
INTERDEPARTMENTAL SERVICES
OUTSIDE SERVICES & OTHER
MATERIALS AND SUPPLIES
DEPRECIATION
ENCINA PLANT SERVICES
CAPITAL OUTLAY
MISCELLANEOUS EXPENSES
TOTAL OPERATING EXPENSES
786,335 614,821 717,074 102,253 18.6%
184,314 200,314 189,972 (10,342) -5.2%
464,738 136,502 196,679 60,177 44.1%
139,363 65,647 77,118 11,471 17.5%
1,200,000 1,256,353 1,200,000 (56,353) -4.5%
1,725,OOO 1,300,920 1,520,OOO 219,080 16.8%
507,079 40,786 461,055 420,289 1031 .O%
38,600 (5,505) 26,920 32,425 -589.0%
$025,429 3,609,816 4,388,618 779,000 21.6%
,
,
,
1
>
2
,
>
>
>
>
2
1
j
18
PERATING INCOME/LOSS 722,571 2,227,624 1,630,674 (596,950) -26.6%
A
. 1
Financial Status Report 11
REDEVELOPMENT AGENCY
Revenues Revenues for the Redevelopment Agency total $1.4 million for the year ended June 30, 1999, which is
$49,000 higher than the previous year and 3.7% higher than the budget for the year. The primary revenue
source for the Redevelopment Agency is property taxes; these are up by 3.1% over 1997-98, based on
growth in property values within the Redevelopment area. Miscellaneous revenues are higher than the
previous fiscal year by $33,000 due to administration fees collected from the new Poinsettia Heights
mortgage revenue bonds issued in May 1999, and rent received from the leasing of the former Bauer
Lumber building. Interest income is down by $22,000 due to a lower cash balance during the year, lower
interest rates and a temporary market value adjustment made at year-end.
Exoenditures
Total expenditures and encumbrances for the fiscal year were below the budget of $1.6 million, with debt
payments making up the majority of the Redevelopment Agency expenditures. Several feasibility studies
were planned and budgeted for in fiscal year 1998-99, but they have been postponed until the following
fiscal year, resulting in outside service expenses remaining well below budget. Rentals and leases are
under budget by $20,000 because anticipated increases in lot rentals from North County Transit District
(NCTD) did not go into effect.
CARLSBAD REDEVELOPMENT AGENCY
OPERATIONS AND DEBT SERVICE FUNDS
JUNE 1999
CHANGE FROM
BUDGET YTD YTD YTD 96 TO
FY 1996-99 06/30/96 06/30/99 YTD 99
REVENUE
PROPERTY TAXES 1,200,000 1,208,387 1,246,185 37,798
INTEREST 77,000 68,174 46,151 (22,023)
MISCELLANEOUS REVENUES 118,300 121,261 154,238 32,978
TOTAL REVENUE 1,395,300 1,397,822 l&6,574 48,752
TOTAL AVAILABLE %
BUDGET COMMITTED BALANCE AVAILABLE
FY 1996-99 06/30/99 (1) 06130199 06130199 (2)
EXPENDITURES
STAFFING 167,499 162,509 4,990 3.0%
INTERDEPARTMENTAL SERVICES 97,494 91,689 5,805 6.0%
RENTALS & LEASES 127,312 107,097 20,215 15.9%
DEBT EXPENSE 1,098,500 1,084,826 13,674 1.2%
OUTSIDE SERV, MAINT & MISC 121,841 73,178 48,664 39.9%
TOTAL EXPENDITURES I,61 2,646 I,51 9,296 93,347 5.8%
REVENUES OVER EXPENDITURES (217,346) (72,724)
(1) Total committed includes expenditures and encumbrances.
S&EMBER 3,1999
4
EXHIBIT 4
TO:
VIA:
CITY MANAGER
RECREATION DIRECT w
FROM: AQUATIC SUPERVISOR
RECOMMENDATIONS FOR INCREASING USAGE OF SWIM COMPLEX
BACKGROUND
At the City Council meeting on June 15”, the Council stated its desire to increase the availability of
the Swim Complex to the public. The citizens of Carlsbad have repeatedly given input to staff and
Council about the desire for another aquatic facility for the City. Due to the design of the Swim
Complex, the ability to schedule multiple programs at the same time is very restricted. As a result,
the facility is currently used from before 6 AM to after 9 PM weekdays year-round.
The facility is used now for City sponsored programs such as Recreation and Lap swimming, the
Masters Swim Program, various levels of Swim Lessons, miscellaneous party rentals, Safety Training
programs, and Water Exercise programs. The pool is also used under Use Agreement contracts
with Carlsbad Unified School District for Carlsbad High School (CHS) physical education classes,
Boys’ and Girls’ Water Polo and Swim Teams; for North Coast Aquatics (NCA) swim team, and North
Shore Aquatics (NSA) age group water polo.
DISCUSSION
Knowing that opening another aquatic facility will take three to five years or more to do, staff has
analyzed and reported current use and will outline possible options for increasing use below:
l OPTION 1: The biggest opportunity for increased use is on weekends throughout the year.
Currently the pool is open 9.5 hours on summer Saturdays, 5.5 to 8 hours on school-year
Saturdays; 7.5 hours on summer Sundays and 3 to 6 hours on Sundays during the school year.
This could be increased by an hour of Recreation and Lap swim and would add 1,040 lane/hours
per year.
l OPTION 2: Recreation and Lap Swim could be expanded weekdays during the school year by
opening earlier and/or staying open later. For example, open at IO:1 5 AM rather than IO:45 and
close at 7:30 PM rather than 7 PM. This would add 1,940 lane/hours per year.
l OPTION 3: Another option would be to extend Adult Lap Swim in unused lanes during the
evenings that the pool is being used by NCA, NSA or CHS, during the school year. This would
require adding only one additional staff and would add 1,300 lane/hours per year.
Council and Management should be aware that there will likely continue to be small gaps in
programming which will always be difficult to fill such as between 9 and IO:30 AM on school year
weekdays. This time period is typically low use at any recreation or fitness facility. In addition, there
will continue to be high impact time periods when multiple groups or programs wish to use the same
pool space at the same times (school year late afternoons/early evenings for example).
Another factor to consider relating to expanding use of the Swim Complex is the existing workload of
the Aquatic Supervisor and Specialist, part-time staffing limitations, and the maintenance needs of
the facility. The availability of part-time staff is still limited to 1,000 hours. Increasing the full-time
equivalency of the aquatics part-time staff budget will add to the recruitment, selection, training and
scheduling workload of the Aquatic Supervisor and Specialist.
- :
’ RECOMMENDATION
In order to maximize the amount of pool time available to the citizens of Carlsbad, staff recommends
that all three options be considered and $17,775 in funding be appropriated to the Aquatics’ part-time
salaries and M.& 0. accounts for the 99-00 fiscal year.
FISCAL IMPACT
These options could be implemented individually or in combination.
OPTION 1: $4,160 To increase weekend Recreation and Lap Swim by 1 hour will cost $3,328 for
staff (104 days x $32/Hr.) and $832 for M. & 0. costs (104 hrs x $8/Hr.)
OPTION 2: $7,760 If Recreation and Lap Swim were expanded 1 hour weekdays throughout the
school year, this would cost $6,210 for staff (I 94 days x $32/Hr.) and $1,550 for M. & 0.
OPTION 3: $5,855 To extend Adult Lap Swim in unused lanes during the evenings that the pool is
being used by NCA, NSA or CHS would cost $3,140 for staff (1.75 Hrs. x 194 days x $9.25/Hr.) and
$2,715 for M. & 0. Since these groups would no longer have exclusive use, they would no longer
be charged for utilities and lifeguard service, which will’ result in about $5,600 revenue loss.
The total budget cost of possible increased use for fiscal year 99-00 (Options I, 2 & 3) is $17,775.
It is anticipated increased revenue would offset these costs by about 30% or $5, 332 for an net cost
of $18,043. Note that M. & 0. costs include gas for heating the pool and showers, electrical for
pumps and lighting, sewer and water, and pool chemicals.
BUDGET ESTIMATED REVENUE NET
OPTION 1
OPTION 2
OPTION 3
TOTAL
COST REVENUE LOSS COST
$4,160 $1,872 0 $2,288
$7,760 $1,800 0 $5,960
$5.855 $1.660 $5.600 $9.795
1 iI?, 1 . $5;332 $5;600 1 $18,043 1
CONCLUSION
If Council decides to approve the options listed above, staff believes some pressure will be taken off
of peak recreation and lap swim times. Staff will continue to monitor use and will request
adjustments as feasible during the normal budget cycle.
Also, at the June 1 5’h meeting, some council members expressed the desire to explore non-City
aquatic facilities to meet program needs for the Masters Swim Program, Water Polo and others.
Staff has explored using non-City facilities for City programs, with no success. Other pools in the
community are typically highly used. Issues such as liability and indemnification, maintenance and
repair responsibilities, use conflicts and others are a concern for both the City and the private facility
owners. Staff will however continue to investigate opportunities to expand high demand programs
such as swim lessons, Masters and others.
Carl T. Pope III
c: Assistant City Manager
Finance Director
WORDICARL’SIMY DOCSIMEMOSIINCREASE POOL USE/ OS/OS/99 12:07 PM