HomeMy WebLinkAbout2002-09-10; City Council; 16886; Financial Results for Fiscal Year Ended 6/30/02CITY OF CARLSBAD -AGENDA BILL
AB# 16,886
MTG. 09-10-02 CITY ATTY. FISCAL YEAR ENDED
TITLE:
FINANCIAL RESULTS FOR THE
JUNE 30,2002
DEPT H$
DEPT. FIN
RECOMMENDED ACTION:
Accept the Financial Status Report for the fiscal year ended June 30,2002.
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, 2002 (Exhibit 1).
The 2001-02 fiscal year books are closed and the audit is under way. The Comprehensive Annual
Financial Report (CAFR) is expected to be issued in December 2002. The financial results shown in
this report for the General and Redevelopment funds are on a budgetary basis, which means the
expenditures include encumbrances. 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 $69 million. Revenues totaled $85.7
million, which were $526,000 above recent projections and $4.9 million higher than the previous year.
Total expenditures (including transfers) at $72.2 million for the year were $12.2 million below the
budget. The increase in revenue is primarily attributable to two factors, the continuation of a strong
housing market (increased property taxes) and higher natural gas prices (increased franchise taxes).
On the other hand, the effects of terrorism on tourism (lower transient occupancy taxes) and a third
consecutive year of slower growth in Carlsbad (lower development related revenues) partially offset
the increase in General fund revenues. The graph shows the effect of the stronger local economy
and the strong housing market on General fund revenues during the past few years.
The chart also reflects the
slight leveling off of
expenditures during the past
couple of years. Although
expenditures for general City
services actually increased
during the year by
approximately $2.5 million,
the amount transferred to the
General Capital Construction
fund for capital projects
declined by $2.8 million. This
was partially offset by a
GENERAL FUND
1992 TO 2001
(In millions)
1993 1994 I995 1996 1997 I998 1999 2000 2001 2002
transfer to the Storm Water Protection fund of $1.9 million. Thus, the net increase shown in the
graph is minimal. Any revenues collected in an amount greater than that spent will increase the
General fund balance. During the 1999-2000 fiscal year, expenditures essentially equaled revenues
as an $8.5 million transfer was made to the General Capital Construction fund during that year.
I
Page 2 of Agenda Bill # 16,886
In total, Capital Project funds expended $37.3 million on various projects throughout the City, and
Enterprise funds expended $14.5 million on water, sewer and solid waste related projects. Some
of the major capital projects that the City expended funds on during the year included: . . . . . . . . . . . . . . . . . .
Alga Road median enhancements
Design work and property acquisitions for the easterly extension of Poinsettia Lane
Westerly extension of Cannon Road
Widening and realignment of Rancho Santa Fe Road
Easterly extension of Faraday Avenue
Carlsbad Boulevard realignment study
Easterly extension of Orion Street from El Camino Real to Faraday Avenue
Poinsettia Lane railroad bridge widening
Coastal Rail Trail design
Design of the new Public Works Center
Leo Carrillo Park construction
Aviara Community Park master plan
Construction of the South Carlsbad Village Storm Drain
Construction of the Vista/Carlsbad trunk line Development of the new recycled water plant
Phases II and 111 of the South Agua Hedionda Interceptor
Encina Water Pollution Control Facility projects
Work on numerous waterlines, pump stations, traffic signal installations and street
maintenance projects throughout the City.
The Water Operations fund had an operating income of $1.9 million for the year. Due to an
than last year. The largest expenditure for the year was for purchased water, which was higher
extremely dry year and a more accurate accrual at year-end, water sales were $1.6 million higher
than last year by $860,000 from increased water usage.
Sewer Operations had an annual operating loss of $143,000 for the fiscal year. Total revenues
were higher than the previous year due to an increase in the customer base and a more accurate
accrual at year-end. Expenditures were higher than the previous year due in large part to
increased interdepartmental charges. Utility engineering costs are allocated through
interdepartmental charges, and this increase is the result of a more accurate accounting of the
Sanitation fund’s share of these costs.
Revenues to the Redevelopment Agency total $1.6 million for the year ended June 30, 2002,
which is $339,000 less than the prior year. The majority of the decrease in miscellaneous
revenues is due to the expiration of lease agreements with Beach Sleep Furniture and the
which decreased by $88,000, or 6%. Most of the decline can be attributed to the reassessment
Carlsbad Unified School District. The Agency’s primary source of revenue is property taxes,
of the Village Faire shopping center. Expenditures for the Agency were below budget by
$1 19,000, as several projects were not started as of year-end.
Additional information regarding the financial results for all of these funds is available in the
attached report (Exhibit 1).
I1
I1
I1
I1
I1
I1
Page 3 of Agenda Bill # 16,886
FISCAL IMPACT:
The financial status of all City of Carlsbad funds can be found in the 2001-02 Comprehensive
Annual Financial Report, which will be available in December 2002.
EXHIBITS:
1. Financial Status Report for the fiscal year ended June 30, 2002.
3
EXHIBIT 1
Financial Status Report
Prepared by the Finance Department
June 30,2002
This report summarizes the City of Carlsbad's General fund revenues and expenditures through June 30,
2002. 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 Report (CAFR). Revenues totaled $85.7
million, which was $526,000 above recent projections. Expenditures at $72 million were $12.2 million
below budget for the year.
TOPGENERALFUNDREVENUES FISCAL YEAR 2001-2002
UNRESERVED - UNDESIGNATED FUND BALANCE
~ ~~ ~
Taxes
Budaetarv Basis
Actual on a
up the year with $60,908,347
$22.3 million in
property tax revenues, an increase of 13%
from fiscal year 2000-2001. According to
the County of San Diego Assessor's Office
reports, assessed values in Carlsbad
increased 12.5% for fiscal year 2001-2002. (6,957,609
1994, property taxes are the top revenue
generator in the General fund.
85,744,705
377.588
(64,822,184
(7,336,540
For the first time since fiscal Year 1993- 45,815
Taxes
For the year, sales
tax receipts finished up 2% over last year's collections. For sales occurring in the
twelve months ended March 31, 2002 (the most recent data available) key gains
21.7 million)
could be seen in auto sales, apparel stores, leasing, departmenfffumiture and
appliance stores, and building materials. During the same period, key declines were seen in light industry,
chemical products, restaurants, and service stations. The three largest economic segments in the City
continue to be new auto sales, department stores and restaurants, with apparel stores closing in: together
they generate 54% of the City's sales tax revenues.
Even with the effects of September Ilth, sales tax revenues for the year grew, although not as much as
originally forecasted. Sales in the City were helped by a couple of factors including 0% financing (and
other incentives) offered by automobile manufacturers after September Ilth, and heavy discounting by
department and apparel stores during the holiday season.
Financial Status Report 2
7.75% to 7.5% came from the State’s share of the sales tax. The City has continued to receive its 1%
share.
P Transient Occupancv Tax ($8.5 million) - Transient occupancy taxes (TOT)
are $736,000 lower than the previous fiscal year. The City’s two largest hotels
have been hit hardest from the events of September 11, 2001, as conference
related business has been curtailed sharply. These two hotels account for the
decline in TOT revenues this year. The smaller local hotels have been able to
weather the storm much better, since their predominant customers are the non-conference business
traveler as well as local weekend travelers. On the bright side, excluding penalties and interest, TOT
revenues in April and May 2002 were actually higher than TOT revenues in April and May 2001. This is the
first time since June 2001 that this has happened. However, in June 2002, revenues once again dipped
below figures for the same month in the previous fiscal year. Year-to-date TOT figures represent taxes
collected through June 30, 2002.
One new hotel opened this fiscal year, the Inns of America Suites. In December 2001, this 98-room hotel
located % mile from the beach near Cannon Road and Avenida Encinas, became the City’s 31“
hotelhotel.
Franchise Taxes ($7.5 million) - Franchise fees come from public utility
sources such as SDG&E, trash collection franchises, and cable franchises
conducting business within City limits. Franchise tax revenues are up
franchise taxes paid by San Diego Gas & Electric (SDG&E).
significantly from the previous year primarily from an increase in the annual
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 is 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 are 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 28%.
Net electricity sales increased by 16%, while net gas sales increased by 64%. The “in-lieu” taxes are up
202% for the year. According to SDG&E, the increase in the price of natural gas and the increased power
generated by the Encina power plant during the energy crisis are the primary reasons for the jump in both
gas sales and the “in-lieu’’ taxes.
Vehicle License Fees ($4.7 million) - Vehicle License Fees (VLF) have
increased by $357,000 over 2000-2001 figures. VLF collected through June
30, 2002 represents transactions occurring through June 30, 2002.
New car sales were extremely strong during the fourth calendar quarter of
2001. This increase in car sales helped to push the City’s VLF figures up by over 9% in January 2002, from
the previous fiscal year. As new car sales have slowed down recently, the increase in the City’s VLF has
dropped to 8%.
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 due to the population growth in the City, increased new car sales, and the Statewide
increase in VLF received. Registered vehicles include automobiles, trucks, trailers, and motorcycles.
The Governor’s May Budget Revision includes a rollback to only a 25% reduction in VLF for residents of the
State, which is the same level of reduction that was in place at the time Governor Davis took office. Under
the current plan, this increase in tax will not affect the amount of revenue received by the City, but it will
create higher taxes for residents of California. Currently, the Governor has kept his word to not reduce the 5
Financial Status Report 3
~ ____ ~~ ~~ ~______ ~~ ~____
VLF revenues received by local governments. However, until the State budget is formally adopted, there
are no assurances that the City’s future VLF will not be impacted by the State’s budget deficit.
______~
Development-Related Revenues ($3.9 million1 - Development-related
revenues, which include building permits, planning fees, building
department fees, and engineering fees, reflect a third consecutive year of
slower growth in the Carlsbad building industry, as compared to the record-
setting 1998-99 fiscal year. Only engineering related revenues showed any
increases over the previous fiscal year. A large portion of the 127% increase in engineering revenues was derived from engineering plan check fees collected for development at the Villages of La Costa, Calavera
Hills, Bressi Ranch, and Kelly Ranch, as well as a large condominium project by the Poinsettia train station
and the new Pavilion at La Costa shopping center.
The second most significant source of development-related revenue to-date is building permits, down 48%,
as compared to fiscal year 2001. However, this exceeded estimated revenues by 8% for this fiscal year.
For the fiscal year, 765 residential permits were issued, as compared to 1,823 permits issued last fiscal
year. For the year, residential development was most active at the Terraces at Sunny Creek, Rancho
Carrillo, Bayshore Condominiums, Arroyo Vista, and additional development in Aviara. In addition, there
was an extensive amount of multi-unit development throughout the City during the year.
Total commerciaVindustria1 building permits issued this year comprised 322,129 commercial and 67,638
industrial square feet. This compares to 81 1,336 commercial and 463,754 industrial square feet permitted
last fiscal year. Some of the larger commercial projects permitted included the Emerald Lake Corporate
Center, the Extended Stay America hotel, several projects in the industrial corridor of the City, and a new
Sav-On Drug Store in the southeast corner of the City.
Income From Investments and Property ($4.2 million) - For the year, income
from investments and property is up $175,000 compared to the previous year.
Although interest income is down 14%, or $532,000, for the year, income from
the sale and rental of City-owned property is up 186% or $483,000. In addition,
the portfolio management fee is now being reflected as part of the income from
investments and property. Previously this was recorded as interdepartmental charges.
Interest income is down due to the net effect of two factors. First, the City’s investments are currently
recorded on an amortized basis, versus a fair market basis at this time last year. If both fiscal years were
recorded on an amortized basis, interest income would have shown a 2% increase due to an increase in
the average cash balance maintained in the current fiscal year. Secondly, the average yield on the
Treasurer’s Pool for the year is down from 6.18% last year to 5.28% this year.
Income from property rentals and sales is up primarily due to two events. First, the City sold a small portion
of land in Macario Canyon to the developer of that area for $239,000, in order to accommodate the
construction of Cannon Road. Secondly, the City is leasing back a portion of the Farmers building
purchased at the end of December 2001.
a, Increased by $140,000 over 2000-2001 figures. The City has continued their
Business License Tax ($2.4 million) - Business license revenues have
aggressive information and compliance program that was initiated in the
previous fiscal year. Currently, there are 7,012 licensed businesses with the
2,047 of these businesses being home-based.
City and of this figure, 4,865 of these businesses are located in Carlsbad, with
Financial Status Report 4
InterdeDartmental Charcles ($2.2 million) - Interdepartmental charges are $16,000,
or 1%, higher than last year. Interdepartmental charges are generated through
engineering overhead charged to capital projects and miscellaneous
interdepartmental expenses charged to funds outside of the General fund for services
performed by departments within the General fund. In prior years, the Treasurer’s
anagement fee was reflected as an interdepartmental charge. However, in the current financial
4b
statements, this fee is now shown as income from investments and property.
Without the reclassification of the Treasurer’s portfolio management fee, interdepartmental charges would
have shown an 11% increase for the year. The majority of this increase is due to higher engineering
overhead charged to capital projects, as well as a reclassification of reimbursements for street repair work
done for other funds, previously shown as other revenues.
Recreation Fees 151.3 million) - Recreation fees are generated through
instructional classes, youth and adult sports, the triathlon and other special
” events, day trips, various aquatic programs, and lagoon permits. Year-to-date
: recreation fee revenue is $132,000 more than the previous fiscal year. Top
~ revenue generators for the year include instructional classes, special events,
youth and adult sports, preschool activities, aquatic programs and the triathlon.
Ambulance Fees ($1.2 million) - The City bills any individual who is
transported in one of the City’s ambulances. Billing and collection of the
fees are done by an outside company, which receives a percentage of
the fees collected. For the fiscal year, ambulance fees are 16% or
$232,000 lower than fiscal year 2000-2001. During the previous fiscal
year, there was a change made in the accounting method for ambulance fees to a full-accrual basis.
Without this adjustment, ambulance fees would have shown a 5% increase over last year, due to increased
collection rates and an increase in calls for service.
Transfer Taxes ($1.2 million) - When real property is sold, the County
Assessor’s Office charges a transfer tax. The transfer tax rate in San Diego
County is $1.10 per thousand multiplied by the selling price of the property.
The City receives 50% of the transfer tax charged for sales within the City of
Carlsbad. During the current fiscal year, transfer taxes are up 9% due to the
continuation of a strong housing market and escalating housing prices.
A detailed schedule of General fund revenues is provided on the following page
Financial Status Report 5
GENERAL FUND
REVENUE COMPARISON
REVENUE
ACTUAL
2000-01
'AXES
SALES TAX
PROPERTY TAX
TRANSIENT TAX
FRANCHISE TAX
BUSINESS LICENSE TAX
TRANSFER TAX
TOTAL TAXES
NTERGOVERNMENTAL
VEHICLE LICENSE FEES
HOMEOWNERS EXEMPTIONS
OTHER
TOTAL INTERGOVERNMENTAL
.ICENSES AND PERMITS
OTHER LICENSES a PERMITS
BUILDING PERMITS
TOTAL LICENSES 8 PERMITS
:HARGES FOR SERVICES
PLANNING FEES
BUILDING DEPT. FEES
ENGINEERING FEES
AMBULANCE FEES
RECREATION FEES
OTHERCHARGESORFEES
TOTAL CHARGES FOR SERVICES
:INES AND FORFEITURES
VCOME FROM INT 8 PROPERTY
VTERDEPARTMENTAL CHARGES
)THER REVENUE SOURCES
'OTAL GENERAL FUND
$19,657,514
21,196,726
9,269,484
3,915,976
2,300,367
1,095,037
57,435,104
4,318,128
316,194
910,526
5,544,848
2,102,477
1,306,679
3,409,156
1,420,181
820,456
1,443,594
664,384
1,132,460
689,623
6,170,698
763,681
4,062,209
2,147,717
1.312,367
80,845,780
REVENUE
ACTUAL
2001-02
622.286.368
21,660,902
8,533,329
7,494,684
2,440.387
1,193,198
63,608,868
4.675.269
339,192
933,983
5,948,444
1,085,819
912,391
1,998,210
570,283
1,506,944
750,423
1,212,036
1,264,263
6,019,182
715,233
897,533
4,237,254
2,163,257
871,957
85,744,705
ACTUAL COMPARED
TO ACTUAL
$2,628,854 13.4%
464,176 2.2%
(736,155) -7.9%
3,578,708 91.4%
140,020 6.1%
98,161 9.0%
6,173,764 10.7%
357,141 8.3%
22,998 7.3%
23,457 2.6%
403,596 7.3%
(1,016,658) -48.4%
(394,288) -30.2%
(1,410,946) -41.4%
(669,758) -47.2% (250,173) -30.5%
842,560 126.8%
(231,558) -16.0%
131,803 11.6%
(151,516) -2.5%
25,610 3.7%
133,852 17.5%
175,045 4.3%
15,540 0.7%
(440,410) -33.6%
4,898,925 6.1%
Financial Status Report 6
EXPENDITURES
Total General fund expenditures and encumbrances for fiscal year 2001-02 equaled $72 million. This was
$12.2 million less than the budget of $84.2 million. Expenditures are shown on a budgetary basis, which
the year. A portion of the $12.2 million unspent money will be carried over to the next year. These
means they include all amounts actually spent during the year, plus any money encumbered at the end of
“savings” will be used to improve programs and services in upcoming fiscal years.
The following table identifies the allocation of contingency funds during the fiscal year. For the year, just
over $315,000 was authorized out of the contingency account. The remaining contingency account of $3.7
million will go back into the General fund balance for appropriation by the Council in the future. The
$315,000 authorized by the Council was allocated to the following projects:
CONTINGENCY ACCOUNT
USE OF FUNDS
iXPLANATlON AMOUNT DATE
RESOLUTION
NUMBER
JSES:
Carlsbad History Book Publication
Carlsbad Convention and Visitor‘s Bureau Contract Adjustment
Repair City Swimming Pool
Donation to Support the Carlsbad Pop Warner Football Team
Maintenance at the New City Hall Complex (former Farmer’s building)
Contribution to Fraternity House Organization
Strategic Occupancy Planning Study
I-5ICar Country Carlsbad Re-Landscape Project
Swim Complex Improvements
Increase in Grad Night Assistance
Street Light on Branta Avenue
‘OTAL USES
(54,270)
(21,000)
(50,000)
(4,000)
(37,300)
(5.000)
(40,000)
(75,150)
(15,430)
(2.100)
(1 1,000)
(315,250)
10/02/01
11/20/01
1211 8/01
12/18/01
01/15/02
03/26/02
03/26/02
04/02/02
04/16/02
06/25/02
06/25/02
2001-308
2001-325
2001-372
2001-363
2002-029
2002-068
2002-097
2002-102
2002-120
2002-193
2002-1 90
A detailed schedule of General fund expenditures is provided on the following page.
9
Financial Status Report 7
GENERAL FUND
EXPENDITURE STATUS BY DEPARTMENT
'OLICYILEADERSHIP GROUP
CITY COUNCIL
CITY MANAGER
CITY CLERK
CITY ATTORNEY
CITY TREASURER
TOTAL POLICY/LEADERSHIP
UMINISTRATIVE SERVICES
ADMINISTRATION
FINANCE
PURCHASING
HUMANRESOURCES
TOTAL ADMINISTRATIVE SERVICES
'UBLIC SAFETY
POLICE
FIRE
TOTAL PUBLIC SAFETY
:OMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT ADMlN
HIRING CENTER
GEOGRAPHIC INFORMATION
ECONOMIC DEVELOPMENT
COMMUNITY PROMOTION (CCVB)
PLANNING
BUILDING
TOTAL COMMUNITY DEVELOPMENT
:OMMUNITY SERVICES
SENiOR PROGRAMS
PARK PLANNING & RECREATION
CULTURAL ARTS
LIBRARY
TOTAL COMMUNITY SERVICES
JUBLIC WORKS
PUBLIC WORKS ADMINISTRATION
ENGINEERING
PARKS
STREETS & TRAFFIC SIGNALS
FACILITIES
TOTAL PUBLIC WORKS
UON-DEPARTMENTAL 8 CONTINGENCY
OTHER NON DEPARTMENTAL (a)
TRANSFERSOLIT
CONTINGENCY
TOTAL NON-DEPT 8 CONTINGENCY
AS OF 06/30/02
BUDGET BUDGETARY (OVER)
TOTAL ACTUAL ON A UNDER/ % UNDER/
IEPT DESCRIPTION FY 200142 BASIS (b) BUDGET BUDGET
(OVER)
1,600,207
288.733
1,019,697
321,932
3,386,096
155,529
745.387
1,936,047
673.922
2,197,623
5,552,979
16,110,293
10,694,334
26,804,627
491,171
85.849
335,560
298.556
3,324,096
507,959
2,054,897
7,098,088
4.628.016
8,521,649
476.545
721,333
14,347,543
5.4a1.632
637,915
3,428,416
3,429,190
2,628,108
15,605,281
7,173,189
582,179
3,672,070
11,427,m
1,445,666
272,275
288.209
939.658
3,060,149
114.341
441,919
1,777,947
593.748
1,848,441
4,462,055
15,110.082
10,332,175
25,442,257
363.887
84.366
286.656
252.259
495.681
2,684,240
1,855,647
6,022,736
4,084,155
7,214.847
418,190
572,410
12,269,602
505,465
4,575,102
2.958.395
2,304,732
13,130,827
2,7a7,133
434.558
7,173.189
0
7,607,747
154,541
16,458
33,723
80.039
41,188
325,949
303.468
158,100
80.174
549.182
1,090,924
1,000.211
1,362,310
362,159
127.284
1,483
46,297
48.904
12,278
639,856
1,075,352
199,250
563,861
58.355
1,306,802
148,923
2,077,941
906,530
132,450
641.283
470,795
323,376
2,414*434
147,621
3372.070
0
3,819,691
5.7%
9.7%
10.5%
7.8%
26.5%
9.6%
40.7%
8.2%
25.0%
11.9%
19.6%
6.2%
3.4%
5.1%
25.9%
1.7%
14.6%
15.5%
19.2%
2.4%
15.1%
9.7%
12.2%
12.2%
20.6%
15.3%
14.5%
20.8%
16.5%
18.7%
13.7%
12.3%
15.9%
25.4%
100.0%
0.0%
33.4%
lOTAL GENERAL FUND 84,222.034 71,995,373 12,226,661 14.5%
a) Other non-departmental expenses include property tax administration fees, assessment district administration, community assistance
b) Actual expenditures on a budgetaly basis include encumbrances and exclude non-budgeted items.
and other items not attributed to a specific department.
Financial Status Report 8
ENTERPRISE FUNDS
WATER ENTERPRISE
WATER OPERATIONS FUND
JUNE 30,2002
BUDGET YTD
06/30/2001 06/30/2002 YTD 2001-02 FY 2001-02
YTD
CHANGE FROM
CHANGE
YTD 2000-01 TO PERCENT
REVENUES
WATER SALES
CHARGES FOR CURRENT SERVICES
OTHERREVENUES
INTEREST
TOTAL OPERATING REVENUE
FINES, FORFEITURES a PENALTIES
EXPENSES
STAFFING
INTERDEPARTMENTAL SERVICES
PURCHASED WATER
MWDICWA READY-TGSERVE
OUTSIDE SERVICESIMAINTENANCE
CAPITAL OUTLAY
DEPRECIATION/REPLACEMENT
TOTAL OPERATING EXPENSES
MISCELLANEOUS EXPENSES
13,100,000
3,865,154
161.607
2,603,680
664,000
20,414,441
2,182,244
1,862,603
11,500,000
987,678
775,090
2,336,000
1,029,171
46,936
20,119,722
12,058,135
3,880,649
180,080
1,957,432
654,835
18,731,131
2,058,710
1,812,263
9,919,079
760,344
224,066
2,287,805
758,735
53,676
17,814,618
13,686,476
3,763,592
163,877
2,817,094
498,437
20,929,416
2,234,012
1,861,236
10,779,201
772,610
391,530
2,336,000
620,840
16,402
19,011,831
1,628.341
(1 17,057)
(16,203)
(156,398)
859,662
2,198,345
175,302
860,122
48,973
12,266
167.464
48,195
(37,274)
(137,895)
1,137,453
13.5%
-3.0%
-23.9%
-9.0%
43.9%
11.1%
8.5%
2.7%
8.7%
1.6%
74.7%
2.1%
-69.4%
-18.2%
6.4%
Revenues
With this past winterkpring being one of the driest on record, water sales have jumped by
13.5% during the year. During the period of February 15 to March 15, 2002, water sales
almost doubled that of the same period in the prior year. In addition to the increased water
usage, charges for services were higher due to a change in the estimate for the year-end
accrual.
Interest income is down due to the net effect of two factors. First, the City’s investments are
currently recorded on an amortized basis, versus a fair market basis at this time last year. If both fiscal
years were recorded on an amortized basis, interest would have shown a 16% decrease. Secondly, the
average yield on the Treasurer’s Pool for the year is down from 6.18% last year to 5.28% this year.
Increase in other revenues is due to increased property taxes, higher engineering labor charged to
Water Authority.
capital projects, and refunds received from the Metropolitan Water District and the San Diego County
Expenses
Staffing costs are up due to normal increases in salaries and related benefits.
Purchased water has increased due to the additional water usage; the result of a drier year as
compared to the previous fiscal year.
Outside services and maintenance expenses are higher primarily due to water sample testing
by Encina, environmental consulting for Maerkle Reservoir, and the enterprise’s portion of
surveying and aerial mapping costs of the City.
in the current fiscal year from slower development in Carlsbad. /I
Capital outlay expenses are down due to the purchase of a truck in the previous fiscal year.
The decrease in miscellaneous expenses is primarily due to a decrease in the purchase of water meters
Financial Status Report 9
SEWER OPERATIONS FUND
JUNE 30,2002
BUDGET
06/30/2001 06/30/!2002 YTD 200142 CHANGE Fy 2001-02
YTD YTD YTD 200041 TO PERCENT
CHANGE FROM
REVENUES
CHARGES FOR CURRENT SERVICES 6.288.214
INTEREST
5,680.094 5.862.507 3.2%
363,840 255,522 300.000
182.413
6,374,488 6,447.298 72.810 1.1%
329.269 (1.285) 0.4%
TOTAL OPERATING REVENUE 6,644,714
330.554 56,500
-29.8%
OTHERREVENUES
(108.318)
EXPENSES
STAFFING
INTERDEPARTMENTAL SERVICES
OUTSIDE SERVICES/MAINTENANCE
ENCINA PLANT SERVICES
OEPRECIATION/REPLACEMENT
CAPITAL OUTLAY
TOTAL OPERATING EXPENSES
MISCELLANEOUS EXPENSES
700,448
1,153,057
2,140,240
343,205
2,183,000
53,500
354,496
6,927,946
588,773
736,345
2,153.572
45,301
2.180.380
4,296
309,437
6,018,104
1,149,546
669,031
2,140,000
129,983
2.183.000
35,502
283,241
6,590,303
413,201
80.258
(13,572)
84,682
31,206
2,620
572,199
(26,196)
13.6%
56.1%
186.9%
0.6%
726.4%
0.1%
-8.5%
9.5%
Revenues
0 Increase in customer base is reflected in the increase in charges for current services. In
addition to the larger customer base, charges for current services increased due to a change
in the estimate for the year-end accrual.
Interest income is down due to the net effect of two factors. First, the Cityk investments are
currently recorded on an amortized basis, versus a fair market basis at this time last year. If
both fiscal years were recorded on an amortized basis, interest would have shown a 15% decrease.
Secondly, the average yield on the Treasurer’s Pool for the year is down from 6.18% last year to 5.28%
this year.
Expenses
Staffing costs have increased primarily due to normal increases in salaries and benefits, and
the filling of vacancies.
The majority of the increase in the Sanitation Enterprise’s expenses is the result of increased
interdepartmental charges. Utility engineering costs are allocated through interdepartmental
charges, and this increase is the result of a more accurate accounting of the Sanitation
fund’s share of these costs. In addition, the fund is also being charged now for information technology
services, which previously were only allocated to the Water Enterprise.
Increase in outside services/maintenance primarily due to the sewer portion of aerial mapping costs for
City database, increased asphalt repairs, and wastewater services for Carrillo Estates. The City is
required to reimburse sewer charges for over 100 homes until the City’s wastewater facilities are built in
the area.
Capital outlay expenses have increased as the City has purchased additional sewer cleaning
equipment.
Miscellaneous expenses have dropped primarily from reduced postage, and various small tools and
supplies expenses. 12
Financial Status Report 10
REDEVELOPMENT AGENCY
CARLSBADREDEVELOPMENTAGENCY
OPERATIONS AND DEBT SERVICE FUNDS
JUNE 30,2002
BUDGET
M 2001-02
YTD
06i30101 OW30102
YTD s
CHANGE
%
CHANGE
RNENUES
PROPERW TAXES 1,500,000
100,885 INTEREST 58,000
1577.593 1.489.901
(14,455) -14%
269,795 MISCELLANEOUS REVENUES 63,715
6%
86.430
(87.692)
1,608,901 (339,372) -17%
(237,225) -8896
1,948,273 TOTAL RNENUE 1,621,715
32,570
BUDGET COMMITTED
0613W02 (1) 06no102 06i30102 (2) FY 2001-02
BALANCE AVAILABLE
TOTAL AVAILABLE %
EXPENDITURES
STAFFING
INTERDEPARTMENTAL SERVICES
166,598
26,947
RENTALS & LEASES 133,973
DEBT EXPENSE 1.706.600
CAPITAL OUTLAY 16.134
TOTN EXPENDITURES 2,245,649
162,366 4,232
133.768 205
26,935
3%
12 0%
0%
1,703,807 2,793 0%
15.193 941 6%
84.694 110,703
2,126,763
57%
118,886 5%
OUTSIDE SERV, MINT a MISC 195,397
REVENUES OVER EXPENDITURES (623,934) (517,862)
(1) Total cornmineed includes expenditures and encumbrances.
(2) Overall amount available would be 2% if funds were spent at the 581118 pace as last year.
Revenues ~~ The decrease in property taxes is primarily due to the reassessment of the Village Faire
shopping center.
Interest income is down due to the net effect of two factors. First, the City’s investments
are currently recorded on an amortized basis, versus a fair market basis at this time last
year. If both fiscal years were recorded on an amortized basis, interest would have
fiscal year. Secondly, the average yield on the Treasurer’s Pool for the year is down from 6.18% last shown a 5% increase due to the increased cash balances maintained during the current
year to 5.28% this year.
The majority of the decrease in miscellaneous revenues is due to the expiration of lease
agreements with Beach Sleep Furniture and the Carlsbad Unified School District, as well as a
change in the recording of the annual revenue received for the administration of the Santa Fe
Apartments mortgage revenue bonds. This revenue is now recorded in the Affordable Housing
fund.
Expenditures
Total available balance at June 30, 2002 is $79,000 higher than the previous year as
several miscellaneous projects were not started as of year-end.
Total expenditures for the year were below budget by $1 19,000,
Of the $1.7 million in debt expense, $647,000 represents interest on the loan from
the General fund, of which $300,000 was paid back to the General fund during the
year, and the remaining $347,000 was added to the outstanding loan balance.
13