HomeMy WebLinkAbout2003-06-10; City Council; 17199 Exhibit; 2003-04 Operating Budget WorkshopCity of Carlsbad2003-2004 Operating Budget Workshop
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Calendar• June 3 – Capital budget (CIP) Workshop•June 10– Operating Budget Workshop• June 12 – Citizen’s Budget Forum• June 17 – Operating Budget and CIP–Public Hearing and Adoption
Citizen’s Budget ForumJune 12 5:00pm at the Faraday Center1635 Faraday Avenue760-602-2430Informal discussions with staffOperating and Capital budgets
Agenda•Economic Overview–Revenue Estimates•Forecast for the General Fund•Budget Requests for FY 2003-04•Other Fund Summaries•Fee Changes•Program Options
Long Term PlanningLong Term PlanningAnnual ProcessOutcomes/GoalAccomplishmentCouncil’sGoalsCouncil’sGoalsPerformance MeasuresCapitalBudgetOperatingBudgetTotalBudgetTotalBudget
Economic PerspectiveNational•Economy is weak–Job losses in manufacturing; may hurt consumer confidence–Government spending declining•Some improvement by year end•GDP growth at 4% or less•Recovery will be slow
Economic PerspectiveState of California•Slow and sluggish•UCLA forecast–Job growth: .4% for 2003–Personal income growth: 2.5% for 2003•Bright spot: consumer spending especially autos and housing
Economic PerspectiveSan Diego CountyMay 2000April 2003November 2001
State of California Budget DeficitDeficit =$38.2 billion50% of thetotal budget-Governor’s plan will not solve the problem
Why is This A Concern for Carlsbad?•Threeof the largest revenue sources for the City are controlled in some manner by the State•Over 60%60%of General fund revenues are “at risk”•Last time, Carlsbad lost $2.5 millionor 6% of total revenues
Carlsbad’s Economic Profile•Home prices•Taxable transactions•Tourism•Population growth
Percentage Growth in Employment0%1%2%3%4%5%1996 1997 1998 1999 2000 2001 2002Average Employment in Carlsbad for 2002 = 40,510
$0$50$100$150$200$250$300$350$400$450$500In Thousands1997 1998 1999 2000 2001 2002Fiscal YearCarlsbadMedian Home Prices11% increase$472,000
Residential Permits05001,0001,5002,0002,50091 93 95 97 99 01 03 05 07 09 11 13FutureFiscal Year
Assessed Values and Property Taxes$0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.096 97 98 99 2000 '01 '02 '03e '04e$0$5,000$10,000$15,000$20,000$25,000$30,000Assessed ValuesProperty TaxesFYBillionsThousands9% increase expected for 2004
$0$5$10$15$20$25$30$35$40$45$50'93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12-15%-10%-5%0%5%10%15%20%Property TaxesAnnual % GrowthFutureIn MillionsProperty TaxesHistoric and Future
Sales TaxesHistoric and Future$0$5$10$15$20$25$30$35$40$45'96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '120%2%4%6%8%10%12%14%16%18%20%Sales TaxesAnnual % GrowthFuture6% increase for FY ‘04
Sales Taxes by CategoryProjection for ’04: $25.1 million38%Retail30%Misc1%Business16%Food12%Construction3%Transportation
Hotel Rooms in Carlsbad0 2,000 4,000979899000102'03'04Four SeasonsGrand PacificHiltonInns of AmericaOver 3,500 RoomsExtended StayMarriott, Residence InnHampton Inns
Transient Occupancy Taxes97 98 99 00 01 02 03e 04eAll OthersLa CostaFour SeasonsNew Hotels$9.0M$9.3MRecovery back to 2001 levels expected in 2004
Transient Occupancy Taxes$0$2$4$6$8$10$12$14'96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10-20%-10%0%10%20%30%40%50%60%70%TOTAnnual % GrowthFuture
Vehicle License FeesEstimate: $5.3 million$0$1$2$3$4$5$6$7$8$9'96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10-10%-5%0%5%10%15%20%VLFAnnual % GrowthFutureIn MillionsEstimated 6.7% growth in 2004
Franchise Taxes$0$1$2$3$4$5$6$7$8'99 '00 '01 '02 '03 '04CableTrashGas/Elec$1.9$2.6$3.9$7.5$3.7 $3.8In MillionsEnergy Crisis
General Fund RevenuesProjected at $90.9 millionHotel*10%VLF*6%All others23%Franchise*4%Sales*28%Property*29%*Five sources make up 77% of General fund revenues.
General Fund BudgetFY 2003-04Revenues: $90.9 millionTransfers .3 millionBudget Requests: $84.7 millionProjected Surplus: $ 6.5 million
Forecast Assumptions•CPI: 2.4% to 3 %•Taxable sales 5% to 7%•Energy prices No spikes •Development Citywide projections•Personnel costs 5-yr Agreements•Position growth 1% to 2% annual•Other expenses CPI + population•New facilities Per CIP
-$10-$8-$6-$4-$2$0$2$4$6$8Operating Forecast General Fund’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘12 BalancedNet Revenues over (under) ExpendituresMillionsDeficitSurplus
General FundRevenues and Expenditures30405060708090100110120130'97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07RevenuesExpendituresFuture
General Fund BudgetExpenditure Components010,00020,00030,00040,00050,00060,00070,00080,00090,000100,0002003 2004 2005 2006 2007 2008 2009 2010 2011 2012PersonnelM & OCapital and Other
Potential Threats to Forecast•State Budget–$38.2 billion deficit–Structural imbalance which may last for years–Unknown solution•Economy–Jobs have not rebounded–Weak national, state and local–Affects all areas of the forecast
-$14-$12-$10-$8-$6-$4-$2$0$2$4$6$8’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘12 BalancedNet Revenues over (under) ExpendituresMillionsGeneral Fund Forecast
-$14-$12-$10-$8-$6-$4-$2$0$2$4$6$8’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘12 BalancedNet Revenues over (under) ExpendituresMillionsForecast - Loss of 4% of Revenues
General Fund Balance$ 55,100Estimated Balance at 6/30/0435,000Less:Proposition C projects6,500Plus: Surplus from FY 04$ 83,600Estimated Balance at 6/30/03In thousands
Operating Revenue SourcesFiscal Year 2003-04Transfers1%Fees/ Charges24%Taxes51%Interdept.9%Licenses/ Permits2%Interest/ Rents4%Intergov't8%Other1%Total = $147.2 million
Total Operating Budget FY 2003-04Total Revenues: $147.2 million•Essentially equal to the prior yearTotal Budget Requests: $142.6 million•Increase of 1.7% or $2.4 million •Mainly due to 2% increase allowed in the block budgets
Budget Requests
Budget ProcessCouncil adopts budgetFinance Calculates Block Budget LT reviews budgets & recommends to CouncilDepartments submit requests to Finance
Budget Policies•Theme “preservation”•No noticeable cuts in services and service levels•No Layoffs•Identification of new revenue generation opportunities•A balanced budget and long-term plan for staying in balance
Block Budget+2%Maint & Operations= Total Budget+Capital Outlay > 10K+ Goals or new facilitiesPersonnel
Budget Overview
Budget Overview•Proposed Budget $142.6 millionTotal Workforce•646 full time•147.77 FTE hourlyNew Positions•1.25 full-time•Delete 2 police•1.85 FTE hourly
General fund59%Special Revenue8%Enterprise22%Internal Service10%Redevelopment1%Operating BudgetTotal Budget = $142.6 million
General FundCommunity ServicesPublic WorksPublic SafetyContingencyNon DepartmentalAdmin SvcsPolicy/LeadershipCommunity DevelopmentTotal Budget = $84.7 million
Public SafetyJim Hawks – Police ChiefKevin Crawford – Fire Chief
Public Safety Technology PlanIn addition to $563,000 from the general fund, the proposal includes funding from:• Asset Forfeiture• CLEEP Grant• Block Grant• CAD Replacement Fund• Additional CIP
•Reduction of two police officers from one-time bicycle patrol grantPolice Staffing•No new positions for 2003-04
• Patrol of off-road areas for off-road violations, abandoned vehicles, environmental concerns.• Provided on an overtime basis.Off-Road Law Enforcement
• Proposal includes equipment to expand program.• Personnel, maintenance and operations, and one-time expenses are reimbursed by the Abandoned Vehicle Abatement Service Authority at 75%. • Balance to be funded with asset forfeiture.Off-Road Law Enforcement
North County Dispatch JPA•Improved command and control•Greater cooperation and utilization of shared resources•Improved response time for mutual and automatic aid
•Cost based on call volume•Discounts of 30%, 20%, 10%•Carlsbad’s FY 03-04 discounted share is: $192,454North County Dispatch JPA
Training Facility•Many departments have inadequate or no training facilities •Training often times has to take place out of city
•Prop C November 2002 ballot measure approved by voters •Goal Team to conduct needs assessment•No project costs establishedTraining Facility
Top Quality ServicesJim ElliottAdministrative Services Director
On-line Class Registration•Recreation Class registration via the web•Allow registration for Recreation classes 24 hours a day•Cost $50,000
DMS/GIS Link•Link between Document Management System(DMS) and Geographic Information System (GIS)•Allow city staff to access all city documents/maps by clicking on GIS map•Cost $100,000
Cable TV Channel•Local “Carlsbad” Television Station–A cable TV channel operated by the City of Carlsbad - available 24 - 7–Programming developed to enhance the City’s communication with the citizens–“Program Director” – Val Brown•“Executive Producer” – Frank Mannen–“Connecting with the Community”
Communications Plan•2002-03:Team developed tools for connecting with the community•2003-04: Team will be Clearing house for getting the City’s story out:–City Projects, Desal, HMP, Golf Course, Roads, Park Projects•Tools include:–Cable channel, New resident package, Speakers bureau•Assist CCPS Team•Internal communications
New/Enhanced Community Service ProgramsFrank MannenAssistant City Manager
Promoting Learning at the Centro de Información•Offer 11 additional hours of library service per patrons’ requests•No additional cost due to part-time salary savings
Trails Program•Collaborative effort between:–City of Carlsbad–Network of Volunteer Organizations–Private Development
Trails Trails Total Funding = $70,000:Total Funding = $70,000:••M&O of existing trails systemsM&O of existing trails systems––6 Miles6 Miles••Development/Acceptance/M&O of Development/Acceptance/M&O of additional trailsadditional trails––Approximately 5 miles this yearApproximately 5 miles this year••Continue processing IOD’s for private Continue processing IOD’s for private trailstrails••Develop five year Trail Maintenance PlanDevelop five year Trail Maintenance Plan––Maintenance and Acquisitions Maintenance and Acquisitions ••Additional funding = $27,175Additional funding = $27,175
Trail Focus Areas for FY 03Trail Focus Areas for FY 03--0404••Calavera Hills & Calavera Hills & Lake Calavera Lake Calavera ••Villages of La CostaVillages of La Costa••Larwin ParkLarwin Park••Arroyo Vista, Villagio Arroyo Vista, Villagio & Green Valley& Green Valley••Bressi RanchBressi Ranch••Catarini Ranch & Catarini Ranch & Holly SpringsHolly Springs••Carlsbad OaksCarlsbad OaksBusiness ParkBusiness Park
Carrillo Ranch ParkCarrillo Ranch Park•Full year funding = $383,000–Park operations–Landscape & building maintenance•Park tours by volunteer docents•Curatorial services/artifact displays•Revenue from facility rentals•Grand opening/park dedication–August 16, 2003
City Maintenance &Environmental ManagementLloyd HubbsPublic Works Director
Farmers Insurance Building•Purchased Farmers Insurance building in December 2001•Leased back to former owners for one year•Grounds maintenance $67,300 (funded in FY03)•Building maintenance $75,000 (added FY04)
Farmers Insurance Building•FY04 Additional Budget Requests (Total $75,000)–$30,000 part-time salaries–$45,000 Heat/Light
Fleet Cost Savings•In an effort to save costs, a Fleet Task Force was formed to determine–Which of the 58 cars eligible for replacement actually needed to be replaced at this time–If replacement vehicles could be smaller, less costly, and more fuel-efficient
•Task Force Results–11 vehicles in the current fiscal yearwere downsized–Of the 58 vehicles that met the criteria for replacement next year, only 21 vehicles were selected for replacement.–9 of the 21 vehicles selected for replacement were downsized in FY04Fleet Cost Savings
Storm Water Protection Program•Primary Areas of Responsibility:–Investigation & elimination of illegal discharges–Inspection of commercial & industrial sites–Water quality monitoring–Outreach & education requirements under NPDES (National Pollutant Discharge Elimination System) permit–Land-use planning and construction for new developments
Storm Water Protection Program•Budget increase of $168,000–02-03 Budget $1,076,419–03-04 Prelim. Budget $1,244,750•Change primarily due to–Increased regulations = increased monitoring and investigation–Increased permit costs–New database costs to track all inspection activities, monitoring data, and illicit discharge investigations
Storm Water Program•Fiscal Impacts–Currently funded by General Fund–Alternative revenue sources are currently being considered
Community DevelopmentSandra HolderCommunity Development Director
Conference explored ideas for Carlsbad’s next 50 yearsIncluded: 150 citizen and community groups members, and 50 staffSpeakers :•Peter Block•Peter Koestenbaum•Marney Cox•Michael Freedman•John McKnightConnecting Community Place and Spirit
•For FY 2004•Distill themes from conference•Develop guiding principles•$125,000 budgetConnecting Community Place and Spiritwww.ci.carlsbad.ca.us/ccps
SCCRA Land Use Strategy(South Carlsbad Coastal Redevelopment Area)•Initiated consultant (RBF)contract April, 2003•Developing a Land UseStrategy and Vision Statement.•Specific objectives/activities for the Ponto Area•Anticipated to be complete September/October, 2003PA3PA 3
Other Funds
Water Enterprise FundInterestWater SalesProperty TaxEstimated Revenue = $21.0 millionBudget = $20.9 millionOtherPurchased WaterPersonnelDepreciation
Water Fund Forecast$0$1$2$3$4$5$6$7$8$9$10'02 '03 '04 '05 '06 '07 '08$0$5$10$15$20$25$30$35Available after reserveRevenuesExpensesFYRate Increase 1.5% 1.5%Fund Balance - in Millions
Revenues/Expenses – in Millions
Sanitation Enterprise FundOtherInterestService ChargesEstimated Revenue = $6.7 millionOtherDepreciationPersonnelEncinaBudget = $8.0 million
Sanitation Fund Forecast02505007501,0001,2501,5001,7502,0002,2502,500'02 '03 '04 '05 '06 '07 '08$0$1$2$3$4$5$6$7$8$9$10Available after reserveRevenuesExpensesFYRate Increase 4.25% 4.0% 2.5% 2.0%Fund Balance - in Thousands
Revenues/Expenses – in Millions
Sewer Rate Comparison
Special Revenue FundsBlock grantAsset ForfeitureOtherStorm WaterSection 8Maintenance DistrictsTotal Budget = $10.9 million
0100020003000400050006000work comprisk mgthealth insveh maintveh replinfo techrecords mgt$ (thousands)2001-022002-032003-04Internal ServiceTotal Budget $13.7 million
Redevelopment Budget0500100015002000250030002001-02 2002-03 2003-04$ (thousands)otherinteresttax incrementexpenditures
Fee Changes
Aquatics fees•Fees have not increased since 7/01•Fee increases range 12% - 108%•Deletion of after hours utility charges•Actual increase to NCA/CUSD=20%•Brings cost recovery rate between 40-50% PAL ShuttleFee Changes
Fee Changes•Council Agenda Subscription•Document Certification Charge•Fire Protection Meter Delivery charge•Library Fines and Fees•Street Light Energizing FeesPAL Shuttle
Facility Fees•Senior Center•Library auditorium and meeting rooms•Carrillo Ranch Fee Changes
Program Options
Tourism Promotion Funding••Carlsbad has evolved to a major leisure Carlsbad has evolved to a major leisure destinationdestination••Current funding for Visitor and Tourism Current funding for Visitor and Tourism programs is $409,100programs is $409,100••Historically handled Sept/Oct timeframeHistorically handled Sept/Oct timeframe••Providers were asked to submit requests Providers were asked to submit requests during normal budget cycleduring normal budget cycle
Visitor’s Center &Local Promotion••Carlsbad Convention & Visitors BureauCarlsbad Convention & Visitors Bureau––Operates visitors centerOperates visitors center––Local promotion (brochures, special events, web)Local promotion (brochures, special events, web)––Request $410,852Request $410,852
Group Sales••SD North Convention & Visitors BureauSD North Convention & Visitors Bureau––Group sales programGroup sales program––Request $100,000Request $100,000
Council OptionsTourism PromotionTotal Program BudgetTotal Program Budget1.1.Fund tourism promotion at the maximum Fund tourism promotion at the maximum requested by the providers = $510,852requested by the providers = $510,8522.2.Fund tourism promotion at same level as Fund tourism promotion at same level as last year = $409,100last year = $409,1003.3.Fund tourism promotion at same growth Fund tourism promotion at same growth level as other city programs = $370,260level as other city programs = $370,260
Council OptionsTourism PromotionAllocation of fundingAllocation of fundingAfter providing $242,000 to CCVB for staff After providing $242,000 to CCVB for staff costscosts••Budget $510,852, allocate $268,852Budget $510,852, allocate $268,852••Budget $409,100 allocate $167,100Budget $409,100 allocate $167,100••Budget 370,260, allocate $128,260 Budget 370,260, allocate $128,260
Community Contribution Requests••Council has received numerous request to Council has received numerous request to fund special projects for the communityfund special projects for the community••Community Activity Grant program is set Community Activity Grant program is set up to fund these type of programsup to fund these type of programs••$1 million set aside to fund grants$1 million set aside to fund grants••This year several requests received outside This year several requests received outside the grant processthe grant process
ArtSplash••Artsplash 2002 received grant funding and Artsplash 2002 received grant funding and cost overruns = $25,604cost overruns = $25,604••Council approved $15,000 in funding and Council approved $15,000 in funding and inin--kind services for ArtSplash 2004kind services for ArtSplash 2004••ArtSplash is requesting an ArtSplash is requesting an additionaladditional$72,000 for ArtSplash 2004 from FY 04 $72,000 for ArtSplash 2004 from FY 04 budgetbudget
Barrio Fiesta••Request is for inRequest is for in--kind services for Barrio kind services for Barrio Fiesta 2003Fiesta 2003••InIn--kind services were approximately $4,800 kind services were approximately $4,800 for Barrio Fiesta 2002for Barrio Fiesta 2002••Barrio Fiesta is ineligible for Community Barrio Fiesta is ineligible for Community Activity Grant funding because they have Activity Grant funding because they have already received 3 years of fundingalready received 3 years of funding
Agua Hedionda Lagoon Foundation••Request = $90,000Request = $90,000••Either to fundEither to fund––Reimbursement to Kelly Land Company for Reimbursement to Kelly Land Company for certain costs they incurred during Cannon certain costs they incurred during Cannon Road constructionRoad construction––To complete their Land Discovery CenterTo complete their Land Discovery Center••Received Community Activity Grant in FY Received Community Activity Grant in FY 03 to fund Watershed Education program 03 to fund Watershed Education program =$24,500=$24,500
Council OptionsCommunity Contributions1.1.Refer all requests to the Community Activity Refer all requests to the Community Activity Grant process to compete for 2003/04 grant Grant process to compete for 2003/04 grant funds.funds.2.2.Refer requests to the Community Activity Grant Refer requests to the Community Activity Grant process to compete for 2003/04 grant funds and process to compete for 2003/04 grant funds and increase the available funding for the requests. increase the available funding for the requests. 3.3.Fund selected requests from the General fund Fund selected requests from the General fund balancebalance4.4.Do not fund requests.Do not fund requests.