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Home My WebLink About2000-09-12; City Council; 15885; Financial Results Fiscal Year Ended 6/30/2000HOUSING AND REDEVELOPMENT COMMISSION- AGENDA BILL,-+ AB# /<, $6 T’TLE: FINANCIAL RESULTS FOR THE DEPT HD. (b+--- MTG. 09-I 2-00 FISCAL YEAR ENDED DEPT. FIN JUNE 30,200O CITY OF CARLSBAD ANb b I RECOMMENDED ACTIONS: 1. Accept the Financial Status Report for the fiscal year ended June 30, 2000. 2. Approve Resolution No.2Ot70~75 approving the appropriation of funds from the 1999-2000 Health Insurance and Street Lighting fund balances. 3. Approve Resolution No. gcXD4a76 adjusting the 2000-01 Housing and Redevelopment Operating Budget. 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, 2000 (Exhibit 3). The 1999-2000 fiscal year 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 here. The General fund ended the year with an available balance of $37.3 million. Revenues totaled $69.1 million, which was below final projections. Total expenditures for the year were $5.8 million below the budget. The increase in revenue is primarily attributable to the strong local economy with the most noticeable improvement in property, sales and transient occupancy taxes. Income from investments and property also showed some strong growth during the year, due in part to an increase in interest rates and the maintenance of higher average daily cash balances. The graph below shows the effect 3f the stronger local economy on General fund revenues during the past few years. GENERAL FUND REVENUES AND EXPENDITURES ’ 1991 TO 2000 (in millions1 I 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Page 2 of Agenda Bill # /i;l; 8s 5 The chart shows expenditures have also increased significantly during the year. The largest increase was in operating transfers from the General fund to support other programs in the City. These transfers were done to assist: l General capital construction l Infrastructure replacement l The annual Hosp Grove lease payment l Carlsbad Municipal Golf Course design work l The Tyler Court affordable housing purchase In total, Capital Project funds expended $43.9 million on various projects throughout the City. Some of the major capital projects that the City expended funds on during the year included: . . . . . . . . . . . . . . . the new Carlsbad library the Cole Library remodel the new Faraday Center the widening of La Costa Avenue the westerly extension of Cannon Road the widening and realignment of Ranch0 Santa Fe Road the southern extension of Faraday Avenue the westerly extension of Poinsettia Lane the acquisition of Pine School for future park development the Cannon Road transmission main Phases I and II of the South Agua Hedionda Interceptor several waterlines throughout the City reimbursements for street construction within the Ranch0 Carrillo Assessment District several pavement management projects continued development of the Carlsbad Municipal Golf Course. The Water Enterprise had an operating income of $484,000 for the year. Due to another dry winter and an increase in the customer base, water sales were $883,000 higher than last year; even with a reduction in the water rate of $.I 0 per unit in effect for the entire year. This increase in water sales, combined with a $260,000 rebate from the San Diego County Water Authority, and higher charges for fixed delivery charges from the larger customer base, contributed to the increase in total water revenues. Sewer Operations had an annual operating income of $292,000 for the fiscal year. Total enterprise revenues were lower than the previous year due to a rate decrease of $2.00 per month for a single- family residence that went into effect May 15, 1999. Expenditures were higher than the previous year due in large part to a $700,000 replacement transfer made from the Sewer Operations fund to the Sewer Replacement fund, to adequately fund the replacement of aging Sewer infrastructure, Revenues to the Redevelopment Agency total $1.6 million for the year ended June 30, 200, which is $190,000 more than the prior year. The Agency’s primary source of revenues are property taxes which increased by $104,000, or 8%, this year from the increase in assessed values within the Redevelopment area. Expenditures for the Agency were below budget by $77,000 due to a postponed study and a reduction in outside professional services. Additional information regarding the financial results for all of these funds is available in the attached report (Exhibit 3). Page 3 of Agenda Bill # I 2, sld Health Insurance Adiustment As of the end of June, the Health Insurance fund incurred expenditures in excess of the budget. The Health Insurance fund spent $190,000 more than budgeted in fiscal year 1999-2000, primarily due to higher than expected health insurance claims. The fund currently has a negative fund balance, however, the City’s self-insured health plans are under review. Once a final decision has been made on the revisions to the health plans for the employees, the negative balance will be addressed. There are sufficient cash balances available in the fund to make the required payments. Street Liahtina Adiustment As of the end of June, the Street Lighting fund incurred expenditures in excess of the budget. The Street Lighting fund spent $39,000 more than budgeted in fiscal year 1999-2000, primarily in heating and lighting expenditures. This increase in utilities was due to two factors. First, San Diego County has recently seen significant increases in utility rates due to the high demand during the summer months. Street Lighting saw their San Diego Gas & Electric rates on their June 2000 bill increase by approximately 35%. Second, total utility expenses for the year were greater than budgeted amounts. It is requested that Council authorize an appropriation of $39,000 from the 1999-2000 Street Lighting fund balance, to cover this deficit. Housina and Redevelopment Adiustment A change to the 2000-01 Operating Budget adopted by the City Council under Resolution No. 329 is being requested. Consulting costs for the South Carlsbad Redevelopment Area were mistakenly excluded from the list of continuing appropriations. Therefore, a $23,000 increase in appropriations is being requested for the South Carlsbad Redevelopment Area 2000-01 budget. FISCAL IMPACT: The financial status of all City of Carlsbad funds can be found in the 1999-00 Comprehensive Annual Financial Report, which will be available in December 2000. A budget appropriation of $190,000 from the 1999-2000 Health Insurance fund balance and $39,000 from the 1999-2000 Street Lighting fund balance will be required for expenditures in excess of the budget for fiscal year 1999-2000. Housina and Redevelopment Appropriations in the amount of $23,000 for consulting costs in the South Carlsbad Redevelopment Area will be carried forward into the 2000-01 fiscal year, thereby increasing the budget for 2000-01 by a like amount. EXHIBITS: 1. Resolution No.,?000~~75 approving the appropriation of funds from the 1999-2000 Health Insurance and Street Lighting fund balances. 2. Resolution No. adjusting the 2000-01 Housing and Redevelopment Operating 35% Budget. 3. Financial Status Report for the Fiscal Year Ended June 30, 2000. 3 RESOLUTION NO. 2000-275 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROPRIATING FUNDS FROM THE 1999-2000 HEALTH INSURANCE AND STREET LIGHTING FUND BALANCES WHEREAS, the financial results for the year ended June 30, 2000, indicate expenditures in excess of the budget for the Health Insurance and Street Lighting funds; and WHEREAS, the Health Insurance and Street Lighting funds have sufficient cash and/or budget surpluses to appropriate funds to cover the deficits. 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 budget appropriations in the amount of $190,000 is authorized from the 1999-2000 Health Insurance fund balance and $39,000 is authorized from the 1999-2000 Street Lighting fund balance to pay for expenditures in excess of the respective budgets for fiscal year 1999-2000. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 12th , 2000, by the following vote, to day of September wit: AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchin NOES: None ABSENT: None ATTEST: 57!?% . NE M. WOOD, City Clerk (SEAL) 1 2 : 4 c * E 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 333 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, ADJUSTING THE 2000-01 HOUSING AND REDEVELOPMENT OPERATING BUDGET WHEREAS, the 2000-01 Operating Budget for Housing and Redevelopment was adopted under Resolution Number 329; and WHEREAS, continuing appropriations in the amount of $23,000 were erroneously omitted from the 2000-01 Operating Budget. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That appropriations totaling $23,000 for the South Carlsbad Redevelopment Area will be continued into the 2000-01 fiscal year. PASSED, APPROVED AND ADOPTED at a regular meeting of the Housing and Redevelopment Commission on the 12th day of September 2000, by the following vote, to wit: AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchin NOES: None ABSENT: None Al-l-EST: A- . RAYMOND R. PATCHETT, Secretary CLAUDE A. LE&lS, Chairperson (SEAL) u 5 Financial Status Report Prepared by the Finance Department June30,2000 -EXHIBIT 3 This report summarizes the City of Carlsbad’s General fund revenues and expenditures for the fiscal year ended June 30, 2000. In addition, the financial status of the Water and Sanitation Enterprises and the Redevelopment Agency will be addressed. Carlsbad’s revenue trends seem to mirror the San Diego region, in general. Thus, on a monthly basis, this report will also provide the most recent economic data for the area; the San Diego County economic indicators. We feel this information will provide the reader some insight on where the local economy is headed. SAN DIEGO ECONOMIC INDICATORS Building Permits Help Wanted Advertising Unemployment Insurance National Economy Source: Univcrrily of San Dicgo School of Business Adminisntion, CSII hrder q(leading Eeononrk ~ndica~ora, July 13. 2000 With May’s advance, the US0 Index of Leading Economic Indicators has now increased for 15 months in a row. However, the gain was the smallest since April 1999, and with advancing and declining components even at three apiece, the breadth was the worst of the year. The outlook for the local economy is for Financial Status Report 2 continued strong growth for the rest of 2000. This strength is likely to extend into the early part of next year, although at a slower pace than the current advance. According to the University of San Diego School of Business, “There were no major changes in any of the components of the Index in May. The labor market variables continue to perform well, although their gains were less spectacular than in recent months. Elsewhere, higher interest rates and volatility in the financial markets have put a damper on the other components, especially consumer confidence. At this point, however, the negatives are not very serious, and whether they worsen remains to be seen.” GENERAL FUND BALANCE The books have been closed for the fiscal year and the audit is underway. The numbers shown in this report are preliminary subject to audit adjustments. Any adjustments are not expected to significantly change the numbers presented here. The General fund ended 1999-2000 with an unreserved balance of $37.3 million. Revenues totaled $69.1 million, which was $300,000 below recent projections. Expenditures were $1 million higher than projections, and $5.8 million below the budget. GENERAL FUND FISCAL YEAR 1999-2000 UNRESERVED - UNDESIGNATED FUND BALANCE Jnreserved - Undesignated Fund Balance 7/l/99 (Per CAFR*) tevenues Operating Transfers In ixpenditures Iperating Transfers Out Ither Changes in Reserves and Designations Jnreserved - Undesignated Fund Balance 6/30/2000 *Comprehensive Annual Financial Report Actual 36,301 ,I 31 69,104,096 8,353 (56,488,741 (12,043,803 378,082 37.259.11{ TOP GENERAL FUND REVENUES Sales Taxes ($19.5 Million) - For the year, sales tax receipts finished up 14% over last year’s collections. This was due to the continuation of a healthy economy, high consumer confidence, the expansion of the Carlsbad Company Stores in the fall of 1999, and the first full year of sales tax revenue from Legoland. The leading sales tax generators by economic segment were new auto sales, department stores, and restaurants. In the upcoming fiscal year, sales taxes are once again projected to grow, but at a much slower pace. It is projected that the base amount will increase by 5.2%, plus additional amounts for new retail sites locating to the City, and a full year’s worth of sales tax revenue from the expansion of the Carlsbad Company Stores. Financial Status Report 3 Property Taxes ($16.8 Million) - The City wrapped up the year with $16.8 million worth of property tax revenues; an increase of 18% over the prior year. According to the County of San Diego Assessor’s Office, 0 l - assessed values in Carlsbad for fiscal year 1999-2000 increased by 19.7%. This was UP MI A the largest percent increase of any city in the county. This increase in assessed ;I 80/o ,,I’ values was due to new construction within the City as well as the reassessment of ‘:i JL property that changed ownership during the previous year. Under Proposition 13, assessed values of property can only increase by up to 2% per year. However, when property changes ownership, the assessed value increases to the full market value. Therefore, the recent surges in property resales in Carlsbad significantly affected property tax revenues for the City. According to the most recent County of San Diego Assessor’s Office reports, assessed values in Carlsbad have increased another 18% for fiscal year 2000-01. Once again, this was the largest increase of any City in San Diego County. A factor in this increase was the sale, and subsequent revaluation of the Encina power plant. Previously, the plant was considered Public Utility property, and it was assessed a unitary tax which the City received a very small share. Now that it is privately owned, it will be locally assessed and taxed, giving the City an estimated $250,000 more in property taxes. Transient Occupancv Tax ($8.2 Million) - Transient occupancy taxes (TOT) were $1.1 million more in fiscal year 2000, than the previous fiscal year. This increase in TOT was based on two factors. First, according to PKF Consulting, the average room rates for coastal North County increased over the past twelve months. Second, and a bigger factor contributing to the increase in TOT revenues, included the opening of the Grand Pacific Palisades Resort and Hotel in March 1999 and the opening of the Residence Inn in July 1999. Beginning in July 2000, the City will recognize additional TOT revenues from the opening of the Courtyard by Marriott Hotel, and the Carlsbad Beach Hilton Gardens. Development-Related Revenues ($5.3 Million) - Development-related revenues, which include building permits, planning fees, building department fees and engineering fees, all reflect a slowing down in the Carlsbad building industry, compared to the record-setting 1998-99 fiscal ,j&+ 0 year. @+$& I:_ 2, The most significant source of development-related revenue this year was for building permits. Building permits are issued to cover the cost of regulating construction activities. This allows the City the means to protect overall community interests. In fiscal year 2000, 1,838 new homes were started, compared to 2,206 new homes in fiscal year 1999. Total commercial/industrial building permits issued this year comprised 265,487 commercial, and 475,664 industrial square feet. This compares to 1,141,200 commercial, and 1,084,900 industrial square feet permitted last fiscal year. Jcense Fees ($3.8 Million) - Vehicle License Fees (VLF) have increased by $529,000 over 1998- 99 figures. This is an increase of 16% over the prior fiscal year. Vehicle License Fees 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. Vehicle License Fees have increased this year due to the population growth in the City and the statewide increase in VLF received. Financial Status Report 4 0 Franchise Taxes ($2.5 Million) - Franchise tax revenues for the year reflect a 29% increase over the previous year. Franchise fees come from public utility sources UP such as SDG&E, trash collection franchises, and cable franchises conducting 29% business within City limits. The majority of this year’s increase is due to increased fees paid by San Diego Gas and Electric (SDG&E). As a result of the change in ownership of the power plant, SDG&E is paying franchise fees on a larger portion of their transmission lines. A Income From Investments and Propertv ($ 2.2 Million) - Year-to-date income from ti UP. 11%: j> 1$ up’i:,c: 9%: investments and property is $213,000, or II%, higher than fiscal year 1998-99. Interest income is $209,000 higher than last year due to higher interest rates and the maintenance of higher average daily cash balances, while sales and rentals of property are essentially identical to the previous fiscal year. c) ‘UP ~2% i, : Interdepartmental Charcles ($2.1 Million) - Interdepartmental charges are $183,000, or 9%, more than last year. The majority of this variance is due to an increase in internal service fund charges, as well as the inclusion of a building usage allowance in these expenses. Business License Tax ($1.9 Million) - Business license revenues totaled $1.9 million for the year; 7% ahead of last fiscal year, and slightly higher than projections for the year. Business licenses issued totaled 6,214, compared to 5,616 issued as of the end of June 1999. In an effort to create equity among the business community, as well as bring businesses into compliance with the City’s business license ordinance, the City has recently embarked on a public awareness campaign. This campaign is designed to educate the business community on the requirements and procedures for business licensing in the City of Carlsbad. Over 1,200 letters were mailed to various businesses that are potentially doing business in the City without a license. The City has also implemented a temporary amnesty period through September 30, 2000 for newly licensed businesses. During this amnesty period, for all newly licensed businesses, all penalties for prior business license taxes will be waived. The City expects to see business license tax revenues grow during the next year due to this compliance campaign, as well as the new businesses moving into the community. 9 Financial Status Report ACTIJ AL REVENUE REVENUE ESTIMATE 1998-99 1999-00 rAxES PROPERTY TAX SALES TAX TRANSIENT TAX FRANCHISE TAX BUSINESS LICENSE TAX TRANSFER TAX TOTAL TAXES NTERGOVERNMENTAL VEHICLE LICENSE FEES HOMEOWNERS EXEMPTIONS OTHER TOTAL INTERGOVERNMENTAL KENSES AND PERMITS BUILDING PERMITS OTHER LICENSES & PERMITS TOTAL LICENSES 8 PERMITS :HARGES FOR SERVICES PLANNING FEES BUILDING DEPT. FEES ENGINEERING FEES AMBULANCE FEES RECREATION FEES OTHER CHARGES OR FEES TOTAL CHARGES FOR SERVICES ‘INES AND FORFEITURES UCOME FROM INT 81 PROPERTY UTERDEPARTMENTAL CHARGES )THER REVENUE SOURCES $14,196,095 $16,900,000 $16,762,040 ($137,960) -0.8% $2,565,945 18.1% 17,129,474 18,955,OOO 19,493,247 538,247 2.8% 2,363,773 13.8% 7,010,249 7,900,000 8,156,472 256,472 3.2% 18146,223 16.4% 1,954,185 2,545,OOO 2,516,583 (28,417) -1.1% 562,398 28.8% 1,737,850 I ,829,ooo 1.863.514 34,514 1.9% 125,664 7.2% 1,080,646 1,100,000 993,026 (106,974) -9.7% (87,620) -8.1% 43,108,499 49,229,ooo 49,784,882 555,882 1.1% 6,676,383 15.5% 3,264,ai a 3,600,OOO 3,793,919 193,919 5.4% 529,101 16.2% 251,204 279,000 288,358 9,358 3.4% 37,154 14.8% 364,889 770,000 821,247 51,247 6.7% 456,358 125.1% 3,880,911 4,649,ooo 4,903,524 254,524 5.5% 1,022,613 28.3% 2,524,063 2,180,OOO 2,156,584 (23,416) -1.1% (367,479) -14.6% 1,302,623 1,027,OOO 1,164,352 137,352 13.4% (138,271) -10.6% 3,826,686 3,207,OOO 3,320,936 113,936 3.6% (505,750) -13.2% 853,255 1,656,345 1,700,756 858,112 1,034,345 483,625 6,586,438 63,372 12.7% (289,883) -34.0% (63,319) -4.3% (234,664) -14.2% (285,i 00) -20.4% (585,856) -34.4% (68,955) -6.9% 72,933 8.5% (210,850) -I 8.9% (128,195) -12.4% (60,196) -10.9% 6,179 1.3% (625,048) -10.3% (1,159,488) -17.6% 804,258 1,992,453 1,933,820 500,000 I ,485,ooo 1,400,000 1 ,ooo,ooo 1,117,ooo 550,000 6,052,OOO 818,000 2,350,OOO 2,100,000 1 ,ooo,ooo 563,372 1,421,6&M 1,114,900 931,045 906,150 489,804 5,426,952 770,949 2,204,993 2,116,923 574,937 69,104,096 (45,051) (145,007) 16,923 (425,063) -5.5% -6.2% 0.8% 1,190,009 -42.5% (33,309) 4.1% 212,540 10.7% 183,103 9.5% (815,072) -51.7% GENERAL FUND REVENUE COMPARISON ACTUAL ACTUAL COMPARED ACTUAL COMPARED REVENUE TO ESTIMATE TO ACTUAL 1999.00 DIFFERENCE AS % DIFFERENCE AS% ‘OTAL GENERAL FUND 63,323,074 69,403,OOO (298,904) -0.4% 5,781,022 9.1% I 0 Financial Status Report 6 Expenditures Total General fund expenditures and encumbrances for fiscal year 1999-2000 equaled $68.5 million. This was $5.8 million less than the budget of $74.3 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 1999-2000 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, just over $1.8 million was authorized out of the contingency account for the following: CONTINGENCY ACCOUNT USE OF FUNDS :XPLANATION RESOLUTION AMOUNT DATE NUMBER idopted Budget $4,000,000 06/15/99 99-218 Jses: Consultant Services for Establishment of a Second Redevelopment Are; PERS Cost for Four Year Service Credit Preparation of EIR for Second Redevelopment Area Addition of Management Assistant in Public Works Extend Pool Hours Management Base Pay Increase Carlsbad Convention and Visitor’s Bureau Contract Adjustment Carlsbad Convention and Visitor’s Bureau Contract Adjustment Year 2000 Contingency Plan Management Incentive Pay (as Adjusted) Tree, Street and Sidewalk Policy Committees Tourism Impact Assessment CCEA MOU Salary and Benefit Adjustment (125,000) 07/20/99 99-265 (457,962) 08/l 7199 99-293 (79,900) 09/l 4199 99-307 (56,700) 09/I 4199 99-308 (17,775) 09/I 4199 99-313 (300,600) 09/14/99 99-315 (104,000) 1 o/05/99 99-457 (10,000) 1 O/l 9/99 99-457 (32,500) 1 O/I 9199 99-483 (291 ,013) 1 O/26/99 99-471 (80,000) 12/07/99 99-503 (45,320) 0210 1100 2000-40 (236,OOOL 03/07100 2000-71 -0TAL USES ($1,836,770) A detailed schedule of General fund expenditures is provided on the following page. A Financial Status Report 7 GENERAL FUND EXPENDITURE STATUS BY DEPARTMENT ACTUAL ON A UNDER/ % UNDER/ BUDGET BUDGETARY (OVER) (OVER) IEPT DESCRIPTION FY 1999-2000 BASIS (b) BUDGET BUDGET ‘OLICYILEADERSHIP GROUP CITY COUNCIL 243,840 229,430 14,410 5.9% CITY MANAGER I ,094,695 1,018,755 75,940 6.9% CITY CLERK 245,502 229,476 16,026 6.5% CITY ATTORNEY 745,803 745,803 0 0.0% CITY TREASURER 136,140 114,911 21,229 15.6% TOTAL POLICY/LEADERSHIP 2,465,980 2,338,375 127,605 5.2% IDMINISTRATIVE SERVICES ADMINISTRATION 324,005 266,363 57,642 17.8% FINANCE I,487542 1340,066 147,476 9.9% PURCHASING 545,319 463,268 82,051 15.0% HUMAN RESOURCES 1,791,660 1,240,096 551,564 30.8% RECORDS 1,679,500 1,625,387 54,113 3.2% TOTAL ADMINISTRATIVE SERVICES 5828,026 4,935,180 892,846 15.3% ‘UBLIC SAFETY POLICE 13,168,868 13,091,103 77,765 0.6% FIRE 8,962,643 8,753,244 209,599 2.3% TOTAL PUBLIC SAFETY 22,131,711 21,844,347 287,384 f.3% :OMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT ADMIN 572,351 516.190 56,161 9.8% HIRING CENTER 80,070 76,673 3,397 4.2% GEOGRAPHIC INFORMATION 349,544 325,843 23,701 6.8% ECONOMIC DEVELOPMENT 182,629 168,614 14,015 7.7% COMMUNITY PROMOTION (CCVB) 520,824 503,148 17,676 3.4% PLANNING 2,633,391 2,428.114 205,277 7.8% BUILDING 1,826,978 1,801,399 25,579 1.4% TOTAL COMMUNITY DEVELOPMENT 6,185,787 5,819,981 345,808 5.6% :OMMUNITY SERVICES PARK PLANNING & RECREATION 3,390,434 3,275,810 114,624 3.4% SENIOR PROGRAMS 393,742 347,873 45,869 11.6% LIBRARY 5048,136 4,253,419 794,717 15.7% CULTURAL ARTS 593,610 563,934 29,676 5.0% TOTAL COMMUNITY SERVICES 9,425,922 8,441,038 994,886 10.4% ‘UBLIC WORKS PUBLIC WORKS ADMINISTRATION 700,104 687,257 32,847 4.7% ENGINEERING 5,184,413 5,105,939 78,474 1.5% PARKS 2,872,509 2,382,693 289,816 10.8% STREETS & TRAFFIC SIGNALS 2,938,181 2,495,043 443,138 15.1% FACILITIES 2,059,516 1,984,327 75.189 3.7% TOTAL PUBLIC WORKS 13,554,723 12,635,259 919,464 6.8% ION-DEPARTMENTAL & CONTINGENCY OTHER NON DEPARTMENTAL (a) 533,822 474,563 59,259 11.1% OPERATING TRANSFERS OUT 12,043,803 12,043,803 0 0.0% CONTINGENCY 2,163,230 0 2,163,230 100.0% TOTAL NON-DEPT & CONTINGENCY 14,740,855 12,518,386 2,222,489 15.1% ‘OTAL GENERAL FUND 74,313,004 88,532,544 5,780,460 7.8% a) Other non-departmental expenses include property tax administration fees, Y2K prep costs and other non-departmental items. b) Actual expenditures on a budgetary basis include encumbrances and carryforwards, and exclude non-budgeted items. - Financial Status Report 8 WATER ENTERPRISE Revenues ENTERPRISE FUNDS 0 l Increase in water sales is due to a 12% increase in water units sold, and an increase in the customer base. This has more than offset a rate decrease of $.I0 per unit that has been in Up!::,,, $+j$@ effect the entire fiscal year. l Decrease in interest revenue due to a large cash transfer made in April 1999 used to support the construction of future water projects. l Decrease in fines and forfeitures is the result of allocating late charges between the water and sewer funds. In the prior fiscal year, all late charges accrued to the water fund. l Increase in customer base is the cause for the increase in charges for current services. l Majority of increase in other revenues is due to a refund from the San Diego County Water Authority (SDCWA), based on fiscal year 2000 water sales. Expenses A ~ l Majority of increase is due to a 16% increase in purchased water, created by the number of water units purchased, the topping off of reservoirs, the subsidizing of reclaimed water with UP. potable water and a 1% increase in the price of water purchased. 12;0% l Increase in staffing costs due to reallocation of salaries between reclaimed and potable water, and costs of the Public Works reorganization, including PERS expenses and temporary help. l MWD/CWA ready-to-serve charges include $311,000 in SDCWA infrastructure access charges which began in March of 1999, to offset fixed expenses not recovered through standby charges or property taxes. l In prior fiscal year, paid off 800 MHz lease of $416,000 (shown in capital outlay). WATER OPERATIONS FUND JUNE 30,200O CHANGE FROM BUDGET YTD MD YTD 99 TO PERCENT FY 1999-00 6/30/l 999 6/30/2000 YTD 2000 CHANGE 2EVENUES WATER SALES 10,943,000 11,908,227 12,790,924 882,697 7.4% CHARGES FOR CURRENT SERVICES 3,551,OOO 3,617,853 3,792,396 174,543 4.8% FINES, FORFEITURES & PENALTIES 176,000 215,213 177,513 (37,700) -17.5% INTEREST 350,000 640,493 357,652 (282,841) -44.2% OTHERREVENUES 410,000 497,570 776,781 279,211 56.1% TOTAL OPERATING REVENUE 15,430,000 16,879,356 17,895,266 1,015,910 6.0% ZXPENSES STAFFING 2,779,458 2,290,492 2,740,868 450,376 19.7% INTERDEPARTMENTAL SERVICES 1 ,011,792 875,173 1,005,487 130,314 14.9% PURCHASED WATER 10,596,500 8,890,445 10,344,396 1,453,951 16.4% MWDlCWA READY-TO-SERVE 762,000 597,356 755,322 157,966 26.4% UTILITIES 194,900 116,893 116,794 (99) -0.1% OUTSIDE SERVICES/MAINTENANCE 593,464 215,581 448,268 232,687 107.9% GENERAL OFFICE EXPENSE 258,943 263,265 215,153 (48,112) -18.3% MATERIALS AND SUPPLIES 472,358 366,259 310,699 (55,560) -15.2% DEPRECIATION 1,300,000 1,239,519 1,300,000 60,481 4.9% CAPITAL OUTLAY 211,916 569,053 55,256 (513,797) -90.3% MISCELLANEOUS EXPENSES 42,700 126,277 119,493 (6,784) -5.4% TOTAL OPERATING EXPENSES 18,224,031 15,550,313 17,411,736 1,861,423 12.0% IPERATING INCOME/LOSS (2,794,031: 1.329,043 483,530 (845,513) -63.6% 13 Financial Status Report 9 SANITATION ENTERPRISE Revenues 0 l Decrease in charges for current services due to a rate decrease of $2.00 per month for DOW “6.W a single-family residence effective May 15, 1999. l Decrease in interest revenue due to a large cash transfer made in April 1999 used to support the construction of future sewer projects. l Majority of decrease in other revenues is due to a one-time termination payment received in the prior fiscal year for refinancing of an investment agreement. Expenses l 0 Depreciation/replacement charges are higher in the current fiscal year due to a $700,000 replacement transfer made from the Sewer Operations fund to the Sewer Replacement fund. UP This transfer was not made in the previous fiscal year. mph l Encina Plant expenses are 29.5% higher in the current fiscal year due to a one-time payment of $357,000, which has been accrued at 6/30/00, and will be paid in 2000-01. This payment represents the City’s share of costs and reserves in excess of payments, as determined in Encina’s 1998-99 audit. l Interdepartmental charges are up slightly due to the inclusion of a building usage allowance. l Reduction in capital outlay expenses is due to the pay off of the 800 MHz lease of $416,000 in the last fiscal year. SEWER OPERATIONS FUND JUNE 30,200O CHANGE FROM BUDGET YTD YTD YTD 99 TO PERCENT FY 1999-00 6/30/1999 613012000 YTD 2000 CHANGE lEVENUES CHARGES FOR CURRENT SERVICES 4,670,OOO 5,535,737 5360,891 (154,846) -2.8% INTEREST 100,000 395,439 219,816 (175,623) -44.4% OTHERREVENUES 40,000 88,515 48,935 (39,580) -44.7% TOTAL OPERATING REVENUE 4,610,OOO 6,019,691 5,649,642 (370,049) -6.1% IXPENSES STAFFING INTERDEPARTMENTAL SERVICES OUTSIDE SERVICES & OTHER MATERIALS AND SUPPLIES DEPRECIATION/REPLACEMENT ENCINA PLANT SERVICES CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES 745,974 717,073 664,728 (52,345) -7.3% 248,371 189,972 254,609 64,637 34.0% 352,260 196,679 203,017 6,338 3.2% 143,183 82,148 95,854 13,706 16.7% 2,000,000 1,313,414 2,000,000 686,586 52.3% 1,996,211 1,520,OOO 1,968,756 448,756 29.5% 64,485 363,399 55,205 (308,194) -84.8% 47,400 104,758 115,167 10,409 9.9% $597,664 4,467,443 5,357,336 669,893 19.4% BPERATING INCOME/LOSS (787,884) 1,532,248 292,306 (1,239,942) -80.9% - Financial Status Report 10 REDEVELOPMENT AGENCY Revenues l Assessed values within the Redevelopment area are up approximately 9%, thereby causing an increase in property tax revenues. l Miscellaneous revenues up from prior year due to the rental of the Beach Sleep Furniture Store. l An operating transfer from the General fund was done for $503,000 to assist in the purchase of the Tyler Court Apartments. Exoenditures 0 OWll ::*I VI/$ l During September 1999, the Agency purchased the Tyler Court Apartments, an affordable housing senior apartment complex. The Agency contributed approximately $949,000 of the $5 million purchase price. Of the Agency’s contribution, $446,000 was a loan from the General fund. The remainder came from the Housing Trust fund, and the Low and Moderate Income Housing fund. CARLSBADREDEVELOPMENTAGENCY OPERATIONS AND DEBT SERVICE FUNDS June 2000 BUDGET YTD YTD $ % FY 1999-2000 06/30199 06/30100 CHANGE CHANGE 2EVENUES PROPERTY TAXES INTEREST MISCELLANEOUS REVENUES TOTAL REVENUE OPERATING TRANSFERS TOTAL REVENUE & OP XFERS 1,230,OOO 42,500 92,500 1,365,OOO 502,949 1,667,949 BUDGET FY 1999-2000 i ,245,848 1,350,267 104,419 a% 58,086 56,625 (1,461) -3% I 54,238 241,726 87,488 57% 1,456,172 1,646,616 190,446 13% 588,763 502,949 (85,814) NA 2,046,935 2,151,567 104,632 5% TOTAL AVAILABLE % COMMITTED BALANCE AVAILABLE 6/30/2000 06/30/00 6/3Ol2000 EXPENDITURES STAFFING INTERDEPARTMENTAL SERVICES RENTALS 81 LEASES DEBT EXPENSE TYLER COURT PURCHASE OUTSIDE SERV, MAINT & MISC TOTAL EXPENDITURES 161,818 170,834 (9,016) 75,374 70,301 5,073 123,550 101,450 22,100 I ,058,ooo 1,048,029 9,971 948,923 948,923 0 106,453 57,417 49,036 2,474,118 2,396,954 77,164 -6% 7% 18% 1% 0% 46% 3% ?EVENUES OVER EXPENDITURES (1.109,116l~ (746.336)