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HomeMy WebLinkAbout2001-09-18; City Council; 16325; Financial Results Fiscal Year Ended June 30, 2001CITY OF CARLSt3AD AB# lb 325. TITLE: FINANCIAL RESULTS FOR THE MTG. 09-l l-01 FISCAL YEAR ENDED DEPT. FIN JUNE 30,200l CITY MGR.-&& Accept the Financial Status Report for the fiscal year ended June 30,200l. ITEM EXPLANATION: The financial results for the General fund, the Water Operations fund, the Sewer Operations fund, and the Redevelopment Agency are presented in the attached report for the fiscal year ended June 30, 2001 (Exhibit 1). The 2000-01 fiscal year books are closed and the audit is under way. The Comprehensive Annual Financial Report (CAFR) is expected to be issued in December 2001. The financial results shown in this report for the General and Redevelopment funds are on a budgetary basis, which means the expenditures include encumbrances and other adjustments to make them comparable to the adopted budget. In addition, interest income is presented on an amortized cost basis for all funds rather than at market value as required under generally accepted accounting principles. These adjustments will be made for presentation in the CAFR. The General fund ended the year with an available balance of $57 million. Revenues totaled $80.8 million, which were $444,000 above recent projections and $11.4 million higher than the previous year. Total expenditures (including operating transfers) at $71.2 million for the year were $6.2 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 franchise taxes. Income from investments and property also showed strong growth during the year, due in part to the maintenance of higher average daily cash balances. The graph shows the effect of the stronger local economy on General fund revenues during the past few years. The chart also reflects the slight leveling off of expenditures during the year. Although expenditures for general City services actually increased during the year by approximately $6 million, the amount transferred to the General Capital Construction fund for capital projects declined by $2.7 million. Thus, the net increase shown in the graph is minimal. Any revenues collected in an amount GENERAL FUND 1992TO2001 (in millions) I Ia 1993 1994 1956 19% 1997 1993 m?l 2ooo ml I greater than that spent will increase the General fund balance. The unreserved, undesignated General fund balance as of June 30, 2001 is $57 million. I Page 2 of Agenda Bill # Ibl3;sS In total, Capital Project funds expended $19.8 million on various projects throughout the City. Some of the major capital projects that the City expended funds on during the year included: . . . . . . . . . . . . . . . Widening of Palomar Airport Road Design work on the easterly extension of Poinsettia Lane Westerly extension of Cannon Road Easterly extension of Faraday Avenue Design of the widening and realignment of Ranch0 Santa Fe Road Cole Library remodel Design of the new Public Works Center Construction of ADA pedestrian ramps Leo Carrillo Park master plan Construction of the South Carlsbad Village Storm Drain Acquisition of the Hidden Valley Storm Drain Preliminary development of the new recycled water plant Construction of the Vista/Carlsbad trunk line Phases I and II of the South Agua Hedionda Interceptor Work on numerous waterlines, pump stations and street maintenance projects throughout the City. The Water Operations fund had an operating income of $961,000 for the year. Due to heavier than normal rainfall in the region, partially offset by an increase in the customer base, water sales were $843,000 lower than last year. A large increase in other revenues more than compensated for the reduction in water sales. This increase in other revenues was primarily the result of recording property tax revenues in the Water Operations fund in 2000-01 versus the Capital Replacement fund in 1999-00. Sewer Operations had an annual operating income of $499,000 for the fiscal year. Total revenues were higher than the previous year due to several factors, including an increase in the customer base, higher interest earnings due to the maintenance of higher cash balances and a new revenue source: engineering labor charged to capital projects. Expenditures were higher than the previous year due in large part to the maintenance and operations portion of the utility engineering and utility billing charge backs included in the interdepartmental charges, as well as increased Encina plant operating expenses resulting from the recent surge in gas and electricity rates. Revenues to the Redevelopment Agency total $1.9 million for the year ended June 30, 2001, which is $87,000 more than the prior year. The Agency’s primary source of revenue is property taxes, which increased by $192,000, or 14%, this year from the increase in assessed values within the Redevelopment area. Expenditures for the Agency were below budget by $40,000 due to a postponed study and a water billing adjustment. Additional information regarding the financial results for all of these funds is available in the attached report (Exhibit 1). FISCAL IMPACT: The financial status of all City of Carlsbad funds can be found in the 2000-01 Comprehensive Annual Financial Report, which will be available in December 2001. EXHIBITS: Financial Status Report for the fiscal year ended June 30,200l. Financial Status Report Prepared by the Finance Department June30,2001 EXHIBIT 1 This report summarizes the City of Carlsbad’s General fund revenues and expenditures through June 30, 2001. In addition, the financial status of the Water and Sanitation Enterprises and the Redevelopment Agency will be addressed. GENERAL FUND BALANCE The books have been closed for the fiscal year and the audit is underway. This report is for internal purposes only and the numbers shown are preliminary. Interest income is shown on an amortized cost basis and will be adjusted to market value as required under generally accepted accounting principles (GAAP) for presentation in the Comprehensive Annual Financial Review (CAFR). Revenues totaled $80.8 million, which was $444,000 above recent projections. Expenditures at $62.3 million were $5.6 million below budget for the year TOPGENERALFUNDREVENUES f? UP 9% Sales Taxes ($21.2 Million) - For the year, sales tax receipts finished up 9% over last years collections. For sales occurring in the year ended March 2001 (the most recent data available) key gains could be seen in new auto sales, apparel stores and light industry. During the same period, key declines were seen in miscellaneous retail, business services and leasing. GENERAL FUND FISCAL YEAR 2000-2001 UNRESERVED - UNDESIGNATED FUND BALANCE Actual on a Budgetary Basis Unreserved - Undesignated Fund Balance 7/l/2000 Revenues Operating and Residual Transfers In Expenditures Operating and Residual Transfers Out Other Changes in Reserves and Designations Unreserved - Undesignated Fund Balance 6/30/2001 $44,415,645 80,775,830 1.267,468 (62341.149) (9,415,546) 2,274,324 $56,976,572 --c The three largest economic segments in the City continue to be new auto sales, department stores and restaurants; together they generate 54% of the City’s sales tax revenues. In order to comply with a Revenue and Taxation Code provision passed in 1991, a sales tax rollback of 0.25% went into effect on January 1, 2001. This rollback was due to the state having back-to-back fiscal years with a reserve fund of at least 4% of its total General fund. This reduction in the sales tax rate from 7.75% to 7.5% came from the State’s share of the sales tax. The City has continued to receive its 1% share. Property Taxes ($19.7 Million) - The City wrapped up the year with $19.7 million in property tax revenues, an increase of 17% from fiscal year 1999-2000. According to the County of San Diego Assessor’s Office reports, assessed values in Carlsbad increased 18% for fiscal year 2000-01. This was the largest increase of any city in San Diego County. Financial Status Report 2 According to the most recent County of San Diego Assessor’s Office report, assessed values in Carlsbad have increased 12.5% for fiscal year 2001-02. Although this increase was not the largest in the county, Carlsbad has once again experienced another double-digit percentage increase for the upcoming year. 0 UP 41% revenues is to the recen Transient Occupancy Tax ($9.3 Million] - Transient occupancy taxes (TOT) are $936,000 more than the previous fiscal year. The increase in TOT revenues is due entirely to the opening of the Courtyard by Marriott Hotel and the Carlsbad Beach Hilton Gardens in June 2000. Without these two new hotels, TOT for the year would have actually decreased by 1%. According to PKF Consulting, room rates have increased during the past year, leading us to believe that the drop in TOT increase in the vacancy rate experienced by local hotels. This is directly attributable m in the economy. Development-Related Revenues ($5 Million) - Development-related revenues, which include building permits, planning fees, building department fees, and engineering fees again this year reflect a slowing down of the building activity in Carlsbad. The most noticeable decreases were seen in engineering fees and building permits. The most significant source of development-related revenues this past year was building permits, down 3%, as compared to fiscal year 2000. Building permits are issued to cover the cost of regulating construction activities. This allows the City the means to protect overall community interests. For the fiscal year, 1,823 new homes were started, compared to 1,838 new homes in fiscal year 2000. For the year, residential home development was most active in Ranch0 Carrillo, La Costa Valley and Calavera Hills. In addition, there was an extensive amount of multi-unit development throughout the City during the year. Total commercial/industrial building permits issued this year comprised 811,336 commercial and 463,754 industrial square feet. This compares to 265,487 commercial and 475,664 industrial square fee permitted last fiscal year. Some of the larger commercial projects permitted included the La Costa Glen apartment buildings, Carlsbad Self Storage, Inns of America Suites, the AIbertson’s at La Costa Plaza, and the La Costa Glen Assisted Living facility. Income From Investments and Property ($ 4.8 Million) - For the year, income from investments and property is up almost $2.6 million. The increase in interest revenue is due to two factors. First, General fund revenues have increased significantly in the current fiscal year. Combining this increase in revenues with a reduction in expenditures as compared to the previous year, the cash balance has increased by 34% this year. Secondly, investments are valued at an amortized cost in FY 2000-01 as compared to the market value in the previous year. This accounting adjustment raised income from investments by an additional 25%. The remaining increase in income from investments and property was created by an increase in rental income. 0 Vehicle License Fees ($4.3 Million) - Vehicle License Fees (VLF) have UP increased by $524,000 over 1999-2000 figures. Vehicle License Fees are 14% 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. Registered vehicles include automobiles, Financial Status Report 3 trucks, trailers, and motorcycles. State Assembly Bill 858 went into effect on January 1, 2001. This bill provides a 67.5% VLF credit to licensed vehicle owners in the State. Vehicle owners will see a reduced VLF fee during the year. This reduction will be in place for the 2001 and 2002 calendar years. This bill is double-joined with State Assembly Bill 511, which appropriated money necessary to cover the reduction in VLF revenues so that cities and counties, the recipients of VLF, will not see any reduction in their VLF revenues at this time. Franchise Taxes ($3.8 Millionl - Franchise tax revenues are up significantly from the previous fiscal year. Franchise fees come from public utility sources such as SDG&E, trash collection franchises and cable franchises conducting business within City limits. The majority of this year’s increase is due to increased collections from San Diego Gas & Electric (SDG&E). SDG&E pays franchise taxes for the use of public land over which they transport gas and electric services. In addition, SDG&E also pays an “in-lieu” franchise tax based on the value of gas and electricity transported on SDG&E lines but purchased from another source. The majority of “in-lieu” taxes collected are from Cabrillo Power, the operator of the Encina Plant. This “in-lieu” tax was put in place to capture the franchise taxes on gas and electricity that is transported using public lands but which would not otherwise be included in the calculations for franchise taxes. The franchise taxes paid by SDG&E are up in total by 18.9%. Net electricity sales increased by 1 I%, while net gas sales increased by 45%. The “in-lieu” taxes are up 221.6% for the year. SDG&E did not complete the sale of Cabrillo Power until May of 1999. Therefore, the 1999 “in-lieu” taxes paid by Cabrillo Power represented just over 7 months worth of activity; on the other hand, “in-lieu” taxes collected in 2000 from Cabrillo Power were for an entire year, creating the large variance. Business License Tax ($2.3 Million) - Business license revenues have increased by $437,000 over 1999-00 figures. The majority of this year’s increase was due to two factors; the success of our recent public awareness campaign and the licensing of Cabrillo Power. 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 embarked on a public awareness campaign. This campaign was designed to educate the business community on the requirements and procedures for business licensing in the City of Carlsbad. Over 2,100 letters were mailed to various businesses that were potentially doing business in the City without a license. The City also implemented a temporary amnesty period through September 30, 2000, for newly licensed businesses. During this amnesty period, all penalties for prior business license taxes were waived for newly licensed businesses. The City saw 317 new organizations obtaining a business license as a result of this program, bringing in over $102,000 in additional business license revenue. The other factor in the growth in the business license tax is the licensing of Cabrillo Power. The power plant was not required to have a business license when they were owned by SDG&E, as they were under a franchise agreement with the City. However, since the sale of the plant, they are no longer under a franchise agreement with the City. They are now required to pay business license taxes. The combination of this new source of tax revenue, and the success of the amnesty program and the public awareness campaign, has helped to push business license revenues up over 23% as compared to last year. Interdepartmental Charges ($2.1 Million) - Interdepartmental charges are $141,000, or 7%, more than last year. Interdepartmental charges are generated through the Treasurer’s portfolio management fee, engineering overhead charged to capital projects Financial Status Report and miscellaneous interdepartmental expenses charged to funds outside of the General fund or services performed by departments within the General fund. The majority of this year’s increase is due to an increase in the monthly administrative overhead revenue generated through charges to funds outside of the General fund. ii UP 55% .’ + ?i!Q Ambulance Fees ($1.4 Million1 - The City bills any individual who is transported in one of the City’s ambulances. Billing and collecting of these fees is done by an outside company, which receives a percentage of the fees I collected. For the year, ambulance fees are 55% or $513,000 higher than fiscal year 1999-00. 25% of the increase is due to higher collection rates and an increase in the City’s population, while 30% is due to a change in the accounting method for ambulance fees to a full-accrual basis. Other Licenses and Permits ($1.3 Million) - Other licenses and permits consist of plumbing, electrical, mechanical, right-of-way, grading, conditional land use, lagoon, and other miscellaneous permit revenues. In the previous fiscal year there was a large refund of fees for a permit application, which was withdrawn. This is a big factor in the increase in fees for the current fiscal year. Additional increases can be seen in miscellaneous building permits (plumbing, electrical and mechanical), miscellaneous development permits (right-of-way and coastal development) and general permits (special use and fire protection systems). Other Revenue Sources ($1.3 Million1 - Other revenue sources include revenues received by the City to offset the costs of special studies or projects for developers, reimbursements for damage done to City streets, right-of-ways, other City owned property, other miscellaneous reimbursements, and donations. Year- to-date other revenue sources are up by 119%. This increase in revenues is primarily due to four reimbursements received by the City; two employee life insurance premium rebates from the previous fiscal year, a rebate from San Diego Gas and Electric for previous overcharges and a partial insurance reimbursement for water damage at the Senior Center. 0 Recreation Fees ($1.1 Million) - Recreation fees are generated through instructional classes, youth and adult sports, the triathlon and other special 2% events, day trips, various aquatic programs, and lagoon permits. Year-to-date recreation fee revenue is $244,000 ‘more than the previous fiscal year. $187,000 of the current year recreational revenue-represents fees paid in the prior year for programs in the current fiscal year. In fiscal year 1999-2000 these amounts were shown as deferred revenues and recognized as revenue in the current fiscal year. Financial Status Report GENERAL FUND REVENUE COMPARISON TAXES PROPERTY TAX SALES TAX TRANSIENT TAX FRANCHISE TAX BUSINESS LICENSE TAX TRANSFER TAX TOTAL TAXES ACTUAL REVENUE ACTUAL ACTUAL COMPARED ACTUAL COMPARED REVENUE ESTIMATE REVENUE TO ESTIMATE TO ACTUAL 1999-00 2000-01 2000-01 DIFFERENCE AS % DIFFERENCE AS% $16,762,040 $20,291,000 $19.657.514 ($633,486) -3.1% $2,895,474 17.3% 19,493,247 21,130,OOO 21,196,726 66,726 0.3% 1,703,479 8.7% 8,333,196 9.500,000 90269,484 (230,516) -2.4% 936,288 11.2% 2,591.779 3,820,OOO 3J348.703 28,703 0.8% 1 D256.924 48.5% 1,863,514 2,200,000 2,300.367 100,367 4.6% 436,853 23.4% 993.026 1.100,000 1,095,037 (4,963) -0.5% 102,011 10.3% 50,036,802 56,041,OOO 57,367,831 (673,169) -1.2% 7,331,029 14.7% , INTERGOVERNMENTAL VEHICLE LICENSE FEES 3,793,919 4,200,OOO 4,318,128 118,128 2.8% 524.209 13.8% HOMEOWNERS EXEMPTIONS 288,358 297,000 316,194 19.194 6.5% 27,836 9.7% OTHER 821,247 912,000 910,526 (1,474) -0.2% 89,279 10.9% TOTAL INTERGOVERNMENTAL 4,903,524 5,409,ooo 5,544,848 135,848 2.5% 641,324 13.1% LICENSES AND PERMITS BUILDING PERMITS 2,156,584 2.200,000 2,102.477 (97,523) -4.4% (54,107) -2.5% OTHER LICENSES 8 PERMITS 1,164,267 1,300,000 1,306,679 6,679 0.5% 142,412 12.2% TOTAL LICENSES 8 PERMITS 3,320,851 3,500,000 3,409,156 cmw -2.6% 88,305 2.7% CHARGES FOR SERVICES PLANNING FEES 563,372 750,000 820,456 70,456 9.4% 257.084 45.6% BUILDING DEPT. FEES 1.421.681 1.500.000 1,420,181 (79,819) -5.3% (1,500) -0.1% ENGINEERING FEES 1,114,900 750,000 664,384 (85,616) -11.4% (450,516) -40.4% AMBULANCE FEES 931,045 1,160,OOO 1,443,594 283,594 24.4% 512,549 55.1% RECREATION FEES 886,477 1,051,000 1,132,246 81,246 7.7% 243,769 27.4% OTHER CHARGES OR FEES 579,302 599,000 689,623 90,623 15.1% 110,321 19.0% TOTAL CHARGES FOR SERVICES 5,498,777 $810,000 6,170,484 360,484 6.2% 671,707 12.2% FINES AND FORFEITURES 770,949 797,000 763,709 (33,291) -4.2% VAW -0.9% INCOME FROM INT 8 PROPERTY 2,226,973 3.725,OOO 4,061,910 336,918 9.0% 1,834,945 82.4% INTERDEPARTMENTAL CHARGES 2,006,923 2,100,000 2,147,717 47,717 2.3% 140,794 7.0% OTHER REVENUE SOURCES 597,693 949,640 1,310,167 360,527 38.0% 712,474 119.2% TOTAL GENERAL FUND 69,362,492 60,331,640 1 80,775,630 ] 444,190 0.6% 11,413,338 16.5% Expenditures Total General fund expenditures and encumbrances for fiscal year 2000-01 equaled $71.2 million. This was $6.2 million less than the budget of $77.4 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 2000-01 appropriations (such as money encumbered at the end of the year and appropriations which are going to be continued into the new year). Financial Status Report 6 The following table identifies the allocation of contingency funds during the fiscal year. For the year, just over $1.7 million was authorized out of the contingency account for the following: CONTINGENCY ACCOUNT USE OF FUNDS RESOLUTION EXPLANATION AMOUNT DATE NUMBER I\DOPTED BUDGET USES: Police Department Salary Reclassifications WXO) Regional Sand Retention Strategy (8,192) Out-of-State Travel for Purchasing P350) New Fire Association Contract (370,900) Carlsbad Convention and Visitor’s Bureau Contract Adjustment (3,000) Increase in Public Information Officer Contract (140,000) Management Base Pay Increase (407,600) New Computerized Fleet Maintenance Management System (32,400) Survey of Carisbad Residents Regarding Shared Services and Facilities (34,000) Hourly Employee Salary Adjustments (7,000) Out-of-State Travel for Purchasing (1,850) New Police Association Contract (185,200) Purchase and Installation of Green LED Traffic Signals (315,000) Citywide Paired Comparison Opinion Survey (20,000) Legal Services for City Tree Damage Case (10,000) Increase in Utilities for Traffic Signals (54,000) Aerial Survey and Mapping Services (52,000) Boys and Giris Club Funding (50,000) $4,300,000 rOTAL USES (I ,701,392) 4VAILABLE BALANCE $2,598,608 06127tOO 07/I 8100 2000-252 08/15100 2000-265 09112/00 2000-282 10117100 2000-317 1 O/l 7100 2000-324 1 l/14/00 2000-336 1 l/21/00 2000-348 12/I 2100 2000-378 Olf23101 2001-20 01/23/01 2001-22 02/20101 2001-51 03106101 2001-68 03/20101 2001-85 03/20/01 2001-89 03i23lOI Closed Session 04/I 7/o 1 2001-l 15 04/24/O 1 2001-l 30 06/05101 Minutes Update 2000-20s A detailed schedule of General fund expenditures is provided on the following page. Financial Status Report GENERAL FUND EXPENDITURE STATUS BY DEPARTMENT ACTUAL ON A UNDERI % UNDER/ BUDGET BUDGETARY (OVER) (OVER) IEPT DESCRIPTION FY 2009-2091 BASIS (b) BUDGET BUDGET ‘OLICY/LEADERSHIP GROUP CITY COUNCIL 254,360 233,258 21.102 8.3% CITY MANAGER 1,396.914 1.298.679 98,235 7.0% CITY CLERK 155,526 110.029 45,497 29.3% CITY A-ITORNEY 798,688 798,688 0 0.0% CITY TREASURER 147,548 114,451 33,097 22.4% TOTAL POLICY/LEADERSHIP 2,753,036 2,555,105 197,931 7.2% rDMlNlSTRATNE SERVICES ADMINISTRATION 626,408 469,711 158,697 25.0% FINANCE 1,643,143 1.510,744 132,399 8.1% PURCHASING 574,031 504,628 69,403 12.1% HUMAN RESOURCES 1,739.977 1.306.910 433,067 24.9% RECORDS 1,517,361 1,414,024 103,337 6.8% TOTAL ADMINISTRATIVE SERVICES 6,100,920 5,206,017 694,903 14.7% ‘UBLIC SAFETY POLICE 14,446.143 14,045,053 401.090 2.8% FIRE 9,690,811 9,690,811 0 0.0% TOTAL PUBLIC SAFETY 24,136,954 23,735,064 401,090 1.7% :OMMUNllY DEVELOPMENT COMMUNITY DEVELOPMENT ADMIN 605,032 520,725 84,307 13.9% HIRING CENTER 85,849 82,584 3,265 3.8% GEOGRAPHIC INFORMATION 336,645 316,928 19,717 5.9% ECONOMIC DEVELOPMENT 248.301 178.650 69,651 28.1% COMMUNITY PROMOTION (CCVB) 496,176 494,258 1,918 0.4% PLANNING 2,881,137 2.500.406 380,731 13.2% BUILDING 1,852,543 1,757,923 94,620 5.1% TOTAL COMMUNITY DEVELOPMENT 6,505,683 5,851,474 654,209 10.1% :OMYlJNITY SERVICES PARK PLANNING 8 RECREATION 3,807.199 3,533,826 273,373 7.2% SENIOR PROGRAMS 456,410 375,290 81,120 17.8% LIBRARY 6.616.355 6.616.355 0 0.0% CULTURAL ARTS 697.443 684,740 12,703 1.8% TOTAL COMMUNITY SERVlCES 11,577,407 11,210,211 367,196 3.2% ‘UBLIC WORKS PUBLIC WORKS ADMINISTRATION 557.013 523,154 33,859 6.1% ENGINEERING 4,914,250 4,701,253 212,997 4.3% PARKS 2.771,803 2,721,582 50.221 1.8% STREETS 8 TRAFFIC SIGNALS 3.0949254 3,032,280 61,974 2.0% FACILITIES 2.189,126 2,136,995 52.131 2.4% TOTAL PUBLIC WORKS 13,526,446 13,115,264 411,182 3.0% ION-DEPARTMENTAL 8 CONTINGENCY OTHER NON DEPARTMENTAL (a) 765,212 667,214 97,998 12.8% OPERATING TRANSFERS OUT 9.415,546 8.815.546 600,000 6.4% CONTINGENCY 2,598,608 0 2.598.608 100.0% TOTAL NON-DEPT 8 CONTINGENCY 12,779,366 9,482,760 3,296,606 25.8% OTAL GENERAL FUND 77,379,812 71,156,695 6,223,117 8.0% I) Other non-departmental expenses include property tax administration fees, beach parking fees, land acquisition and other non-departmental item 1) Actual expenditures on a budgetary basis include encumbrances and carryforwards, and exclude non-budgeted items. Financial Status Report ENTERPRISE FUNDS WATER ENTERPRISE WATER OPERATIONS FUND JUNE 30,ZOOl BUDGET FY 2000-01 REVENUES WATER SALES 11,200,000 CHARGES FOR CURRENT SERVICES 3,791 ,ooo FINES, FORFEITURES 8 PENALTIES 209,000 INTEREST 162,000 OTHERREVENUES 1.472.000 TOTALOPERATINGREVENUE 16,834,OOO EXPENSES STAFFING 1,872,587 INTERDEPARTMENTAL SERVICES 1,809,982 PURCHASED WATER 11,566,OOO MWD/CWA READY-TO-SERVE 889,800 UTILITIES 147,400 OUTSIDE SERVICES/MAINTENANCE 480,523 DEPRECIATION/REPLACEMENT 2,193,ooo CAPITAL OUTLAY 63,500 MISCELLANEOUS EXPENSES 738,531 TOTALOPERATINGEXPENSES 19,761,323 3PERATING INCOME/LOSS (2,927,323) CHANGE FROM YTD YTD YTD 99-00 TO PERCENT 06/30/2000 06/3012001 YTD 2000-01 CHANGE 12,900,608 12,058,135 (842,473) 3,806,887 39880,649 73,762 186,070 180,080 (5,990) 424,070 654,835 230,765 780,637 1,957,433 1,176,796 18,098,272 18,731,132 632,860 -6.5% 1 .9x -3.2% 54.4% 150.7% 3.5% 2,730,713 2,058,710 (672,003) -24.6% 1,005,487 1,812,263 806,776 80.2% 10,344,396 9,919,079 (425,317) -4.1% 755,322 760,344 5,022 0.7% 116,955 125,026 8,071 6.9% 492,851 224,066 (268,785) -54.5% 1,369,565 2,193,ooo 823,435 60.1% 55,256 53,676 (1,580) -2.9% 534,870 623,904 89,034 16.6% 17,405,415 17,770,068 364,653 2.1% 692,857 961,064 268,207 36.7% Revenues I2 l Water sales are down slightly from the previous year due to the heavier than normal rainfall the region experienced this past winter. UP l 4% Increase in charges for current services is due to the net effect of a $110,000 decrease in plan check revenue and a $176,000 increase in delivery charge revenue due to the increased customer base. l Increase in interest revenue is due to the maintenance of a higher cash balance as compared to the prior fiscal year, as well as an increase in the market value on investments. l The decrease in fines, forfeitures and penalties is the result of allocating late charges to the various utility services (water, sewer and trash) in the current fiscal year. In the previous fiscal year, all late charges were reflected in the Water Enterprise. l The majority of the increase in other revenues is the result of recording property tax revenues in the Water Operations fund in 2000-01 versus the Capital Replacement fund in 1999-00. Financial Status Report l Expenses l Purchased water expense has decreased by 4% due to the net effect of the recent heavy rainfall the region has experienced, partially offset by a 1% increase in the cost per acre foot of water. l Reduction in staffing costs is the result of moving utility engineering and utility billing staff to the General fund and charging for their services through interdepartmental charges. In total, staffing and interdepartmental charges are $135,000 higher than the previous year. This is due to the maintenance and operations portion of the utility engineering and utility billing charge backs included in the interdepartmental charges. Although gas and electric rates have increased drastically during the current fiscal year, utilities charged to the Water Operations fund have only increased 7% from the previous fiscal year due to the allocation of charges between Water Operations and Reclaimed Water Operations. Increase in depreciation/replacement expense represents an operating transfer made to the Capital Replacement fund to partially cover the annual capital replacement costs. Outside services and maintenance expenses have decreased due largely to three factors. First, there was a reduction in the current fiscal year for installation and training expenses for the new utility billing system that occurred in the previous fiscal year. In addition, the engineering consulting expenses are now being charged through interdepartmental charges instead of being charged directly to the Water Enterprise fund. Finally, the reduction in miscellaneous outside services is due to normal fluctuations in spending for maintenance and environmental compliance. Miscellaneous expenses are up due to several factors; the increase in the cost for meters and fittings, utility billing write-offs and gains on the disposal of assets. These increases were partially offset by a decrease in computer software expenses related to the utility billing system and a reduction in postage expenses due to fewer customer mailings and reduced supplies expense. SEWER OPERATIONS FUND JUNE 30,200l BUDGET FY 26#-01 CHANGE FROM YTD YTD MD 99-00 TO PERCENT 06/3012000 06/3012001 YTD 2000-01 CHANGE REVENUES CHARGES FOR CURRENT SERVICES 5,131,OOo INTEREST 170,500 OTHERREVENUES 21,000 TOTAL OPERATING REVENUE $322,500 5.386,361 5,680,095 293,734 5.5% 257,552 363,840 106,288 41.3% 51.490 330,554 279,064 542.0% 5,695,403 6,374,469 679,086 11.9% EXPENSES STAFFING INTERDEPARTMENTAL SERVICES ENCINA PLANT SERVICES UTILITIES OUTSIDE SERVICES/MAINTENANCE DEPRECIATION/REPLACEMENT CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES 817,335 664,724 588,774 (75.950) -11.4% 760,044 254,609 736,345 481,736 189.2% 2,118,742 2,004,493 2,153,572 149,079 7.4% 129,000 106,352 120,780 14,428 13.6% 292,400 96,991 45,301 (51,690) -53.3% 2.040,OOO 2,072,093 2,040,OOO (32,093) -1.5% 7,998 55,205 4,296 (50,909) -92.2% 158,510 168.049 186,454 18,405 11.0% 6,324,029 5,422,516 5,875,522 453,006 8.4% ZJPEFWTING INCOME/LOSS (1,001,529) 272,887 498,967 226,080 82.8% J Financial Status Report Revenues Expenses l Increase in charges for current services are due to an increase in the customer base. Increase in interest revenue is attributable to the maintenance of a higher cash balance as well as an increase in the market value on investments. Other revenues include charges for engineering labor charged to capital projects. This new revenue source is the result of charging engineering overhead on sewer capital projects and will partially offset the new utility engineering charge back expense. Reduction in staffing costs is the result of moving utility engineering staff to the General fund and charging for their services through interdepartmental charges. In total, staffing and interdepartmental charges are $406,000 higher than the previous year. This is due to the maintenance and operations portion of the utility engineering and utility billing charge backs included in the interdepartmental charges and a more accurate accounting of the Sanitation fund’s share of these costs. Encina Plant services are paid quarterly and are based on the actual costs incurred at the plant. Actual operating expenses in the current year have increased by 25% primarily due to higher energy costs. In addition, $88,000 was paid to reimburse Encina for expenses that exceeded revenues in fiscal year 1999-2000 as determined by their audit. In the prior fiscal year, the City reimbursed Encina $357,000 for expenses that exceeded revenues. The $52,000 decrease from 1999-2000 in outside services/maintenance is due primarily to sewer relocation costs incurred last year, which were associated with the Chestnut Avenue/Valley Street sidewalk project. The reduction in capital outlay is the result of the purchasing and refurbishing of sewer maintenance equipment in 1999-2000. Financial Status Report 11 REDEVELOPMENT AGENCY CARLSBAD REDEVELOPMENT AGENCY OPERATIONS AND DEBT SERVICE FUNDS June 2001 BUDGET YTD YTD $ % FY 2000-2001. 06/30/00 06/30/01 CHANGE CHANGE REVENUES PROPERTY TAXES 1,370,000 1,385,440 1,577,593 192,153 14% INTEREST 47,500 64,356 100,666 36,530 57% MISCELLANEOUS REVENUES 182,500 410,931 269,473 (141,458) -34% TOTAL REVENUE 1,600,OOO 1,860,727 1,947,952 87,225 5% TOTAL AVANABLE % BUDGET COMMll-l.ED BALANCE AVPllABLE FY 2ooo-2001 06/30/01 (1) owo/o1 o6muo1 (2) EXPENDITURES STAFFING 188,380 188,206 174 0% INTERDEPARTMENTAL SERVICES 72,132 74,895 (2,763) -4% RENTALS 8 LEASES 123,905 112,356 11,549 9% DEBT EXF’ENSE 1,770,954 1,761,801 9,153 1% OUTSIDE SERV, MAINT 8 MISC 97,964 75,862 22,102 23% TOTAL EXPENDITURES 2,253,335 2,213,119 40,216 2% MNUES OVER EXPENDITURES (653,335) (265,167) (1) Total committed includes expenditures and encumbrances. (2) Exduding the Tyler Court purchase in 19g9QOO0, overall amount available weld be 6% if funds were spent at the same pace as last year. Revenues l Assessed values within the Redevelopment area are up approximately 12%, thereby causing an increase in property tax revenues. l Higher interest revenues are due to the maintenance of higher cash balances in the current fiscal year as well as an increase in the market value on investments. l The majority of the decrease in miscellaneous revenues is the result of a $200,000 federal grant received last fiscal year for assistance in the purchase of the Tyler Court Apartments. Financial Status Report 12 Expenditures l Excluding the purchase of the Tyler Court Apartments last fiscal year, total expenditures were 5% higher this past fiscal year. l Outside services, maintenance and miscellaneous expenses were up by 27% this year. A majority of this increase is related to survey expenses related to a village transportation corridor master plan and reuse feasibility study for the Oak Avenue public works yard.