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AB# 17,199
MTG. 06/10/03
DEPT. FIN
CITY OF CARLSBAD -AGENDA BILL
2003-04 OPERATING BUDGET
WORKSHOPAND REVIEW OF FEES AND
CHARGES FOR SERVICES
DEPT HD.
RECOMMENDED ACTIONS:
Accept report. Set public hearing for June 17, 2003.
ITEM EXPLANATION:
The Operating Budget work session on June 10, 2003 is an opportunity for the City Council to
review the 2003-04 Operating Budget. City staff will be making presentations and will also be
available to answer questions. In addition, a Citizens’ Budget Workshop will be held on
Thursday, June 12, 2003, at 500 p.m. at the Faraday Center, 1635 Faraday Avenue, Room
173B, to provide the public with an opportunity to discuss the Operating Budget and Capital
Improvement Program with staff. The public hearing and adoption of the 2003-04 Operating
Budget and Capital Improvement Program is scheduled for the June 17, 2003 Council
meeting.
Overview
The proposed Operating Budget for 2003-04 totals $142.6 million, an increase of $2.4 million
from the 2002-03 adopted budget. Operating revenues are estimated at $1 47.2 million, which
is a $900,000 increase over the current year projections.
The economy in California as well as the nation has been slow and sluggish over the past
year. Carlsbad’s revenue growth has slowed in the past year, with the City’s General fund
revenues expected to grow by 2.4% in fiscal year 2002-03 and 2.9% in fiscal year 2003-04.
Most of the increases are in the tax revenues, with lesser growth in other revenues and
declines in the development-related revenues. Property taxes, the City’s largest single
revenue source, are projected to grow to $26.9 million, a 9.3% increase over the past year,
mainly due to the continued development and increase in housing prices. Sales taxes are
expected to total $25.1 million for 2003-04, an increase of 5.9% over the 2002-03 projections,
and assume the opening of a new retail center in the southern part of the City. These two
revenues make up over 50% of the General fund revenues.
The growth in the General fund revenues, as well as other fund revenues, enables the City to
continue to provide top-quality services in fiscal year 2003-04. The 2003-04 budget maintains
the high level of services Carlsbad’s citizens have come to expect but does not propose any
new enhancements other than those previously planned as noted below.
0 New Facilities - The City has a large number of major capital projects scheduled to be
built over the next five years. As the City completes these projects, the costs of
maintaining and operating the facilities are added to the Operating Budget. The Carrillo
Ranch Park will open in summer 2003, and costs to operate that park have been
included in the budget. In addition, there are 6.5 miles of trails under the City’s
jurisdiction, which must be maintained, and it is anticipated that an additional 6 or more
miles will be added in the next year. While staff is using volunteers to help with the trail
maintenance, some City assistance has been budgeted to continue an acceptable level
of maintenance. Lastly, the costs of the heat, lights, and routine building maintenance
for the former Farmer’s Building have been added to the budget, since the lessee has
vacated the building and the City must now assume the operating costs.
Page 2 of Agenda Bill # l7 lg9
Public Safety - Public safety has always been, and remains, a top Council priority.
Although there is not a significant amount of new money proposed in this year’s
Operating Budget for public safety, improvements are under way. One very significant
project planned for the upcoming years is replacement of an aging computer-aided
dispatch system (the “91 1” system). Another area to receive increased attention next
year is the safety and preservation of Carlsbad’s open spaces. This year’s budget
requests the purchase of 5 motorcycles. With the added motorcycles, staff will be able to
patrol more frequently and adequately respond to off-road complaints.
Customer Service - One of Council’s goals is top-quality service, which means serving
our customers well. Although there are no new customer service initiatives funded in the
budget this year due to economic concerns, it does not mean that the City is not
continuing its efforts to provide the best service to our citizens and customers. One
example of this is in the library where some funding has been shifted so that the Centro
De Informacion can be opened longer - 11 additional hours per week. Another example
is an on-line recreation registration system so that busy moms, dads, seniors, and
everyone else will be able to register for their favorite City class at their computer any
time of the day or night.
Cost Savings - With the emphasis this year on controlling costs, a hard look was taken
at the numbers and types of vehicles being purchased as replacements for the City’s
current fleet. Each vehicle was reviewed to determine the need for replacement at this
time, as well as whether the replacement could be a smaller, less costly, more fuel-
efficient vehicle without hurting the effectiveness of the program. The results were that
replacements were reduced 64% and 9 of the 21 vehicles to be replaced were
downsized.
Connecting Community, Place, and Spirit - A new initiative began in this year with the
ultimate goal of connecting community, place, and spirit. For 2004, the process will
continue by distilling the themes from the conference that took place this year and going
back to the community to see if what was gathered from the conference is representative
of the community at large. From there, a vision for the community will be developed and
refined and a plan proposed to assist the community in achieving its vision.
Other Budget Requests - The Operating Budget also includes a $3.6 million transfer to
the Infrastructure Replacement fund to provide funding for infrastructure replacement as
needed in the future. The Council’s contingency account is proposed at $2.3 million,
which is 2.5% of budget requests. This account is available to the City Council to
address unanticipated emergencies or unforeseen program needs.
The Operating Budget proposes 1.25 new full-time and three-quarter-time employees and the
deletion of 2 police positions that were previously funded by grants, for a net decrease of .75.
The General fund portion of the budget contains $84.7 million in recommended expenditures.
This is $1.9 million, or 2.3%, more than the 2002-03 adopted budget. General fund estimated
revenues for 2003-04 total $90.9 million, which is an increase of $2.5 million from the current
2002-03 projected receipts.
Most of the Enterprise fund revenues, which include the water, recycled water and sanitation
services, and solid waste management, are projected to increase in 2003-04, with total
estimate revenues of $31 million. The Enterprise funds have a total proposed budget of
$31.4 million. No rate increases are proposed.
Page 3 of Agenda Bill # 17,199
Revenues from Special Revenue funds are expected to total $11.3 million, just a slight
increase from 2002-03. The expenditures are budgeted at $10.9 million, an increase in
anticipated spending of approximately $357,000 due to one-time costs associated with the
police computer-aided dispatch system. The types of services supported within Special
Revenue funds include grants (Section 8 Housing Assistance, Community Development Block
Grants), donations, special fees, and assessments (Housing Trust fund, Maintenance
Assessment districts).
The combined Redevelopment Agency budget proposal totals $1.9 million. This is 10% higher
than the 2002-03 budget. This increase is mainly due to additional amounts budgeted for the
South Carlsbad Redevelopment Area where work is beginning on the master plan.
More information about all of the City's projected revenues and Operating Budget
recommendations can be found in the attached exhibits.
Fees and Charqes for Services
One of the City Council's goals is to annually evaluate fees and charges for services. Staff
has reviewed all fee schedules and is recommending changes as shown on Exhibit 6, and
further discussed below.
Facility Fees
Senior Center - Most of the current Senior Center facility fees have been in effect
since 1995. In order to make their fees consistent with the recreation facility fees, staff
is suggesting the fee changes shown on Exhibit 6. These fees were approved by the
Senior Commission on March 7, 2002.
Carrillo Ranch - Carrillo Ranch Park is planned to open in late summer 2003. The
daily rental fees for the Patio and Cabana and Pool areas were developed based on a
survey conducted on similar parks throughout Southern California. These fees were
approved by the Parks and Recreation Commission on May 19, 2003 and are shown
on Exhibit 6.
0 Library - The library fees have been changed to make them more consistent with
other City facility fees and to reflect the increase in costs. These fees were approved
by the Library Board on May 21,2003 and are shown on Exhibit 6.
General Fees
City Clerk certification fee and the agenda subscription fee are recommended for slight
increases. These increases are based on increased costs.
Library fines and fees are recommended for increases. These increases are based on
surveys of other San Diego County library fees.
Street Light Energizing Fees are being increased to cover the SDG&E costs. These
fees are shown on Exhibit 6.
Aquatics Fees have not increased since July 2000, although costs of operating the pool
have increased over 18% since then. The attached fee increases are being
recommended in order to achieve a cost recovery rate between 45-50%.
Page 4 of Agenda Bill # 17,199
~
DEPARTMENT CONTACT: Cheryl Gerhardt; (760) 602-2428; cqerh@ci.carlsbad.ca.us
Staff is requesting that Council set the public hearing for the meeting of June 17, 2003. At that
time, Council may receive input from interested citizens and groups wishing to comment on
the proposed budget.
EXHIBITS:
1. 2003-04 Preliminary Budget (Overview).
2. Operating Funds, Projected Fund Balances for FY 2002-03 and 2003-04.
3. Operating Funds, Revenue Estimates for 2002-03 and 2003-04.
4. Operating Funds, Budget Expenditure Schedule FY 2000-01 through FY 2003-04.
5. Personnel Allocations for 2002-03 and 2003-04.
6. Recommended Changes to the City Master Fee Schedule - June 2003.
Preliminary Operating Budget and Capital Improvement Program for fiscal year 2003-04 and
Master Fee Schedules are on file with the City Clerk.
Exhibit 1
2003-04 PRELIMINARY BUDGET
Carlsbad is a full-service City providing the following:
Police Department Development services
0 Fire Department, including paramedic Street construction and maintenance
0 Water delivery system Library and Arts programs
Sewer system Recreation programming for all ages
Solid waste services Park lands
Housing programs School programs
School programs and facilities are provided by four different school districts located within the
City boundaries. Although the City Council has no direct control over these school districts, the
Council recognizes the importance of quality school facilities and programs to Carlsbad’s
residents. The Council has
worked closely with the
schools in the past, and
staff continues to meet with
them on a regular basis.
BUDGET PROCESS
The budget process for the
City of Carlsbad begins in
January each year, with a
review and update of the
City Council’s five-year
vision statements. These
statements are shown
earlier in this document.
Through the vision
statements, Council
defines and clarifies their
vision of Carlsbad. The
strategic goals for the City
are developed next. The
goals further define the
methods used to achieve
the vision and call out
areas in which Council
would like to place special
City of Carlsbad 2003-2004 Strategic Goals
Top-Quality Services - Be a city that provides exceptional services on a daily
basis.
Transportation - Provide and support a safe and efficient transportation system
that moves goods, services, and people through Carlsbad.
Balanced Community Development - Be a city that connects community,
place, and spirit through balanced and well-designed land uses.
Parkslopen SpaceITrails - Acquire, develop, and maintain a broad range of
open space and recreational facilities that actively address citizen needs, that are
fiscally responsible, and are consistent with the General Plan and Growth
Management Standards.
water - Ensure, in the most cost-effective manner reliable, water reliability to the
maximum extent practicable, to deliver high-quality potable and reclaimed water
incorporating drought-resistant community principles.
Environmental Management - Be an environmentally sensitive community
by focusing on: clean storm water, sewage collection and treatment, solid waste,
and cost-effective and efficient use of energy including alternative energy sources.
Financial Health - Pursue and implement proactive strategies that provide and
manage fiscal resources effectively.
Communicalion - Ensure that community members, Council, and staff are well
informed, leading to a more responsive government and a high level of citizen
confidence in government.
Learning - Promote and support continuous learning opportunities within the
communitv and the Citv organization.
emphasis during the year. Once these are developed, staff develops operational goals based on Council’s direction. These operational goals are the basis for the development of the
operating budget. ,
Carlsbad’s operating budget is a tool that guides the achievement of Council’s vision and goals
for the City. It allocates the resources and sets the priorities for all of the programs offered by
the City. Thus, it is an integral part of making Carlsbad a wonderful community in which to live,
work, and play.
1
Exhibit 1 (cont.)
ECONOMIC PROFILE
As the City began budget preparations this year, the news was full of the looming prospect of
war with Iraq and the growing State budget deficit. Now, as the preliminary budget document is
about to go to press, at least one of those topics has been settled. The war has officially been
declared over. However, the growing State budget deficit and the lack of consensus about what
should be done continues to cast a huge shadow over the economic future of the City.
In January, many economists were projecting that if the war was relatively short-lived, an
economic rebound would occur in the latter half of 2003, with the economy picking up speed
into 2004. The war was shorter than many had dared hope; however, the national economy, as
well as the California economy, continues to experience very weak growth. Nationally, retail
sales declined by .l% in April, industrial production fell by .5% for the second month in a row,
and housing starts dropped by 6.8% for the month. But, the news is not all bad. Consumer
confidence picked up in the first part of May according to the University of Michigan’s survey,
and mortgage rates have dropped again to new lows.
In California, the State’s economic performance has generally followed the nation over the past
year: slow and sluggish. The biggest difference is in the distribution of the malaise. Since the
high-tech implosion in 2002, there has been a great difference between the economies in the
Bay Area and the rest of the state. The San Jose area alone lost 16.5% of its jobs between
March 2001 and March 2003, with San Francisco losing 11 .l% of its jobs in the same time
frame. These job losses exceeded what the Los Angeles area lost during the deep recession of
the early 1990’s. The State’s tourism industry has also been hard hit, first by the terrorist
attacks in September 2001, then with the war in Iraq, and most recently with the Severe Acute
Respiratory Syndrome (SARS) epidemic.
The outlook for California in the latter half of 2003, according to the State Finance Department,
is for job growth to hit an annualized rate of 1.6% and personal income to rise by 3.1 %. For
2004, they are predicting further improvements with job growth showing a 2.1% increase and
personal income up by 4.9%.
Locally, the USD School of Business Administration’s Real Estate Institute states: “The outlook
for the San Diego economy is for weak job growth in 2003, with the unemployment rate likely to
remain above 4% for the rest of the year. The rapid end to the conflict in Iraq is one positive
development, which will allow for the quick return of local military personnel. However, that is
not likely to be enough to offset the negatives of a weak national economy and the adverse
impact of the huge State budget deficit.”
So how bad is the State deficit? The Governor’s
“May Revision” estimates it at $38.2 billion out
of a general fund budget of $78 billion, or
almost 50% of the total budget, as of May 2003.
Even with approximately $3.6 billion in annual
new taxes anticipated, the Governor’s proposed
budget will continue to generate deficits year
after year according to the Legislative Analyst’s
Office (see chart). These deficits would persist
even with healthy revenue growth of ‘6%
annually due to all of the one-time borrowings
and deferrals embedded in the 2003-04 budget
plan. For Carlsbad, this means that the shadow
of the State’s budget woes will be hanging over
us for some time to come.
Figure 7
Persistant Gap Would Reemerge Under Governor’s Plan
Genernl Fund
(//l &/k0/7S) I
60
oo-cll 01-02 02-03 03-04 0405 0506 0607 07-08
-Fwxaat- Per LAO “Overview of the May Revision”
2
Exhibit 1 (cont.)
Percentage Growth in Employment
As stated earlier, the San Diego area economy is expected to remain weak for the rest of the
year. The weakness has been evident in some of the more recent data that Carlsbad has
received. Retail sales in the City for the last calendar year grew only 1.1%, with 4th quarter
2001 sales down 2.5% over the same quarter last year. Transient Occupancy Taxes, the City’s
gauge of the tourism industry, are up 1.4% for the fiscal year through March, helped somewhat
by the Superbowl held in San Diego in January and held back by the renovations under way at
one of the City’s larger resorts.
Despite other weaknesses in the economy, Carlsbad’s real estate market has continued strong
I 5%- j\
1 4% - /
3% - /
4yo -
3% - /
2Yo- J
2% -
1% -
1% -
0%
1996 1997 1998 1999 2000 2001 2002
Median SFD Home Prices
n I
500
450
400
350
300
250
200
150
100
50
0 1998 1999 2000 2001 2002
throughout the year. The number of
residential permits issued this year is
expected to total 834, just slightly higher
than the previous year. The impediment
to higher development is mainly due to
the lack of supply rather than a lack of
demand. With supply relatively low,
housing prices have continued to
escalate. Median prices for single-family
homes averaged $472,000 for calendar
year 2002, an 11% increase from the
previous year. Total assessed values in
the City stand at over $14 billion, double
what they were just five years ago.
Although this accelerated pace will level
out over the next few years, the City still
expects to add about 4,100 more residential units and an additional 4.8 million square feet of
commerciaMndustria1 development over the next five years. The City’s residential housing stock
is about 80% built out, with approximately 9,000 housing units remaining to develop.
Commercial and industrial development is also an indicator of job growth in the city. Carlsbad’s
employment base grew by over 1,000 jobs per year in the post-recession boom years of the late
1990’s but has been declining since , then. For the 2002 year, the City
added about 670 jobs. Some of the
major businesses in town include
the Gemological Institute of
America, ViaSat, Invitrogen,
Callaway, Taylor Made, Upper
Deck, and many others.
Commercial development has
brought much needed entertainment
and shopping venues to citizens and
visitors alike, as well as generating
additional sales taxes to help pay for
City services. Carlsbad is home to
Car Country Carlsbad - an auto
mall; the Carlsbad Company Stores - a specialty outlet center; Plaza Camino Real - a regional
shopping mall; a Costco center; and a number of other local retail stores.
3
Exhibit 1 (cont.)
Development has also enhanced Carlsbad’s reputation as a destination resort for tourism. The
City is host to a major family theme park: Legoland, and has two luxury resorts available for its
visitors: the Four Seasons Resort at Aviara and the La Costa Resort & Spa. There are also a
number of other quality hotels and motels in the City with the most recent additions being the
Inns of America, which opened in December 2001, and the Extended Stay America, which
opened in fall 2002. With these new openings, available hotel rooms in the City total about
3,500.
It is the Council’s goal to ensure that the City remains in good financial health, and there are a
number of steps the City has taken to attain that goal. One of these is the Growth Management
Plan. This plan was adopted by the citizens to ensure that all necessary public facilities were
constructed along with development. It also ensures that a financing plan is in place to pay for
the facilities prior to the development of the property.
In addition to the Growth Management Plan, the City also prepares a long-term financial model
for both the capital and operating needs of the City. With a growing city such as Carlsbad, it is
imperative that we plan for the impacts of serving new development and operating new public
facilities, as well as planning for the capital needed to build them. Thus, the City prepares a ten-
year operating forecast for the General fund, and a 20+ year Capital Improvement Program. As
part of the Capital Improvement Program, the City annually calculates the amounts needed to
pay for the various projects and calculates the anticipated operating budget impacts. In this
way, we can anticipate the effects of development from both a capital and an operating
perspective.
One of the newer initiatives the City has undertaken to ensure its financial health is the
development of an Infrastructure Replacement fund. With this fund, the City has begun to set
aside money on an annual basis for major maintenance and replacement of its infrastructure.
Much of the City’s infrastructure is relatively new; thus, the City has not felt the full impact of
maintenance. By setting aside funds now, the citizens of Carlsbad can be assured that the
proper maintenance and replacement, when needed, will be performed on streets, parks, and
many facilities for which the City is responsible.
Despite the mild recession and general economic slowdown in the region, state and nation,
Carlsbad’s current economic position is an enviable one. The healthy economy over the past
General Fund Revenues
100,OOo n 1
..I 94 95 96 97 96 99 00 01 02 We 048
five years provided additional revenue-
generating sites that allow the City to
continue to provide services despite the
sluggishness of the current economy.
The Carlsbad Company Stores, opened
in late 1997, has continued to expand
and now contributes over $1 million
annually to the City’s sales tax receipts.
The City’s Auto Mall generates almost
$6 million per year in sales taxes for the
City. Legoland, a family theme park,
contributes to the City’s sales tax base
as well as stimulating the development
of new hotels in the area. The effect of
the new development and the demand
for housing in Carlsbad is an increasing
tax base. The five major revenue
sources for the City: property taxes, sales taxes, TOT, franchise taxes, and vehicle license
fees, are expected to provide $70.2 million, or 78%, of the City’s General fund revenues in
4
Exhibit 1 (cont.)
2004. These taxes and fees are the major source of funding for most of the City’s services and
allow the City to live up to its reputation as one of the premier locations in San Diego County.
For fiscal year 2003-04, the City’s revenue projections reflect a return of consumer confidence
with growth in base sales taxes at about 5%. Housing values are expected to level out, with
some softening in the market, especially in the higher-end homes. Development is predicted at
a rate similar to fiscal year 2003; again the constraint is based on the limited supply, not on the
demand. And finally, tourism is expected to slowly recover over the year, with TOT receipts
possibly reaching 2001’s level by the end of 2004. More information on all of the City’s
revenues and programs can be found in the later sections of this document.
The most significant areas of risk in the forecast for Carlsbad lie with the economy and the State
deficit. If the economy does not pick up in the first half of 2004, sales taxes and TOT are most
susceptible to significant variances from the forecast, although almost all other revenues may
be affected. The consequences of a declining real estate market on property taxes would most
likely not be realized until the following year (fiscal year 2005).
The concern with the State’s budget deficit is about how much of that deficit the City will be
required to fund. The last time the State ran short of money (early 199O’s), they took over $2.5
million from Carlsbad in the form of a reallocation of property taxes. These taxes were never
allocated back to the City. The Governor’s May Revision recommends eliminating the
reimbursement for booking fees (about $200,000 to Carlsbad), shifting Redevelopment Agency
tax increment to the State (similar to the property tax grab), deferring payment for State
mandated programs, as well as cutbacks in other State grant programs. While it would be
preferable for the State to balance its budget without impacting local government, if the State
can limit the effects to only those indicated in the May Revision, the impact on Carlsbad will be
minimal. The danger is that these will not be enough and that further assaults on City revenue
sources will occur.
LOOKING FORWARD
As stated earlier in this document, the City prepares ten-year forecasts for the General fund
each year in order to understand the effects of actions taken today on the City’s future. The
City has experienced remarkable revenue growth over the past five to seven years due to the
development of the majority of its commercial sites. The future will bring a few more
commercial sites but at a much slower pace, while residential development will continue for a
number of years. There are also a quite a few City facilities - mainly parks - planned for in the
future to serve the growing population. The new facilities will add operating costs to the City’s
General fund budget as they are completed and opened for use.
These factors alone will cause the General fund costs to escalate at a higher rate than inflation.
In addition, a number of other factors - mainly rising retirement and health care costs - will
create upward pressure on expenditures, especially over the next five years. These factors
have been incorporated into the General fund forecast shown below and projected over the next
ten years. While no forecast is ever totally accurate, it does represent a likely scenario given
the assumptions on which it is built.
This forecast assumes that revenue growth will pick up at a moderate pace in 2004 and
continue at that pace into the future. It adds in known personnel costs, which have been
negotiated with the employee groups. The City has multi-year agreements with all the major
employee groups so the effects can be projected fairly accurately. It assumes 15% increases
in health care costs in the near future but flattening out into the future. It also assumes
personnel growth (new positions) to remain rather flat at no more than 2% per year. And finally,
5
Exhibit 1 (cont.)
it includes estimated operating costs for all capital projects in the timeframes shown in the CIP.
One important point is that this forecast assumes the State does take any additional
revenues from the City’s General fund.
The results show that the General
fund would operate at a surplus until
2007, at which time the forecast goes
into a deficit and the deficit continues
to grow into the foreseeable future.
The surpluses are caused by the
surge in revenues that occurred over
the past years. The City’s costs are
projected to continue to grow at a
faster pace than revenues, so it will
eventually lead into deficits. The red
line makes an assumption that the
State takes about $3.5 million from
General Fund
In thousands Revenues over Expenditures
($15,000) - ’3
($20.000) J I
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
+Based on Budget Requirement +Less State lake-away
the City on a permanent basis in fiscal year 2004 (not unlike the events of the early 1990’s).
Under this assumption, the budget would fall into a deficit position by 2006.
Of course, the City does not allow for deficit spending, so it will need to balance the budgets in
the out years. This can be done by reducing costs, raising revenues, or slowing the addition of
new facilities until the revenues have time to catch up. One of the goals adopted for fiscal year
2004 is to develop a comprehensive look at both the revenue as well as the expense side of the
General fund and to prepare a plan that provides for sustainable economic health for the City of
Carlsbad.
6
Exhibit 1 (cont.)
FUND
GENERAL FUND
SPECIAL REVENUE
ENTERPRISE
INTERNAL SERVICE
REDEVELOPMENT
TOTAL
2003-04 PRELIMINARY OPERATING BUDGET OVERVIEW
PROJECTED ESTIMATED $ %
2002-03 2003-04 CHANGE CHANGE
$ 88.4 $ 90.9 $ 2.5 2.8%
11.2 11.3 0.1 0.9%
31.5 31 .O (0.5) (1.6%)
12.9 11.3 (1 -6) (1 2.4%)
2.3 2.7 0.4 17.4%
$ 146.3 $ 147.2 $ 0.9 0.6%
The preliminary Operating budget for fiscal year 2003-04 totals $1 42.6 million, with revenues for
the year estimated at $147.2 million. General fund revenues are estimated at $90.9 million and
budgeted expenditures are $84.7 million.
FUND
PROPERTY TAX
SALES TAX
TRANSIENT OCC. TAX
FRANCHISE TAXES
VEHICLE LICENSE FEES
DEVELOPMENT REVENUES
ALL OTHER REVENUE
TOTAL
REVENUE
PROJECTED
$ 24.6
23.7
8.6
3.7
5.0
5.5
17.3
2002-03
The following table shows the total operating revenues the City anticipates receiving for
2002-03, as well as those estimated for 2003-04.
ESTIMATED
$ 26.9
25.1
9.0
3.8
5.3
4.1
16.7
2003-04
Revenue estimates for the Operating budget indicate that the City will receive a total of
$1 47.2 million, essentially equal to the current year projections. Increases in General fund
revenues, mainly property and sales taxes, offset the declines in the other funds. The decline of
$1.6 million in the Internal Service funds is due to changes in the Health Insurance plans. More
information on the City's revenue sources can be found in the discussion below.
General Fund
General fund revenues provide a representative picture of the local economy. These revenues
are of particular interest as they fund basic City services such as police, fire, library, street and
park maintenance, and recreation programs. The table below shows a summarized outlook for
the major General fund revenues.
SIGNIFICANT GENERAL FUND REVENUES I
$ 88.4 /$ 90.9
7
$
CHANGE
$ 2.3
1.4
0.4
0.1
0.3
(0.6)
$ 2.5
(1.4)
CHANGE
9.3Y
5.9Y
6.0Y
(25.5%)
3.5%
2.8Y
Exhibit 1 (cont.)
$5.000 -
This year it is expected that property taxes will grow to $26.9 million, a 9.3% increase over the
past year. Property taxes tend to lag behind the rest of the economy, as the tax for the
upcoming fiscal year is based on assessed values from the previous January. Thus, the taxes
to be received for fiscal year 2003-04 are based on values as of January 1, 2003. Sales taxes
react much quicker to changes in the economy and therefore will typically grow faster in a good
economy but also drop off faster as the economy cools.
Sales Taxes
General Retail Food Products
12%
Transportation
38% Construction
3%
Property taxes also have a cap
on how fast they can grow.
This is due to Proposition 13.
Proposition 13 was adopted by
the State in 1978. This
proposition limits the growth in
assessed values (and thus
property taxes) to no more
than 2% per year. The value
upon which the tax is based is
only increased to the full
market value upon the sale of
the property. Thus, property
taxes tend to grow slowly
One of the most significant new sites on
the horizon is a retail center in the
southernmost part of the City. This
center may include approximately
190,000 square feet of retail space as
well as restaurants and other
commercial uses.
As can be seen in the accompanying
chart, the City's sales tax base is heavily
weighted in the transportation section:
predominantly new car sales. Thirty-
unless there is a significant amount of housing activity. In more recent years, we have seen
robust growth in property taxes due to new developments and a large number of resales within
the City, spurring revaluation of the parcels.
Sales tax estimates also include approximately $693,000 that is restricted to spending on public
safety services under Proposition 172. Proposition 172 requires that the one-half cent increase
in California sales taxes be allocated to local agencies to fund public safety services.
The third highest General fund revenue source is Transient Occupancy Taxes (TOT or hotel
taxes) estimated at $9 million for 2003-04, an increase of 4.7% over 2002-03 estimates. TOT is
8
Exhibit 1 (cont.)
which would not otherwise be
included in the calculations for
franchise taxes due to deregulation of the power industry.
The majority of the “in-lieu” taxes
received is attributable to Cabrillo Power, the operator of the Encina
power plant, based on the gas
used in the generation of
electricity. During the energy crisis
in 2000 and 2001, average gas
prices soared from about $3 per
thousand cubic feet to, at times,
the one revenue source for the City that was severely affected by the September 2001 terrorism
attacks and has yet to recover.
The tourism industry was already beginning to slow due to the downturn in the national and
regional economies; the terrorism attacks practically shut down the industry for a few weeks. As
SDGE Franchise Taxes
In million’s
$6
$5
$4
$3
$2
$1
$0 2000 01 02 03e 04e
Transient Occupancy Taxes
In thousands
n I
$lO,OOO
s3,ooo
$6,000
$4,000
4.000
$0
00 01 02 03e 04e
Flscal Year
a result, TOT for fiscal year 2002
declined 8%. The recovery from those
events has been stifled by the war in
Iraq and the SAM epidemic. In
addition to the national problems,
Carlsbad’s TOT has also remained
low due to the renovation occurring at
one of its premier resorts, the La
Costa Resort and Spa. The resort is
undergoing extensive remodeling and
rebuilding, which has offset any
growth experienced by the other
hotels in the City. Little or no growth
is expected in fiscal year 2003, with
4.7% projected in fiscal year 2004. If the projections are accurate, TOT will return to the 2001
levels by the end of 2004.
9
Exhibit 1 (cont.)
Vehicle License Fees (VLF) are collected by the Department of Motor Vehicles when cars or
other vehicles are registered. They are calculated on the estimated value of the vehicle and are
distributed to cities and counties mainly based on population. The City’s revenues from this
source grew by about 10% per year from fiscal year 1998 to fiscal year 2001, but have begun to
slow since then to about 7% to 8% annually. The high growth rate was partly due to Carlsbad’s
increasing population and partly to increasing auto sales statewide. Projections for fiscal year
2004 anticipate VLF growing to $5.3 million, a 7% growth rate, reflecting a recovery statewide in
the upcoming year as well as a 2.6% growth in population in Carlsbad.
Development-related revenues
include planning, engineering
and building permits, and fees
paid by developers to cover the
cost of reviewing and monitoring
development activities such as
plan checks and inspections.
These revenues are difficult to
predict, as many of the planning
and engineering activities occur
months or years before any
structures are actually built.
Development-related revenues
increased coming out of the
recession in the early 1990’s as
development in the City picked
I Development Revenues and Permits Issued
T” I , -,---
t
$0 J I
FY 97 98 99 2.000 01 02 03e we
/--)-Revenues +Residential Permits Issued 1
- 2,000
- 1,500 ,$ E - 1,000 a
-500
-0
up and housing demand grew. The City continued to issue a significant number of building
permits in 1997 through 1999; however, the revenues for planning and engineering services
dropped off, thereby flattening the total development revenues received. In fiscal year 2003,
some large master plans pushed the engineering plan check and inspections fees upward to
$2.2 million from their low of $700,000 in 2001, creating the increase in fiscal year 2003.
Based on the Citywide growth projections shown in the Capital Improvement Program section of
this document, a 19% decrease in building permit revenue is expected for the 2003-04 fiscal
year, significantly less than the decline the previous year of 56%. Permits issued are expected
to increase slightly in the years after 2004 but will never achieve the levels of the late 1990’s.
All other revenues include business license taxes, transfer taxes, interest earnings, ambulance
fees, recreation fees, and other charges and fees. The estimate for fiscal year 2003-04 totals
$1 6.7 million, a slight decrease from fiscal year 2002-03.
Business license taxes are closely tied to the health of the economy and show an estimated 5%
growth rate for 2003-04. There are currently about 7,000 licensed businesses in Carlsbad, with
over 2,000 of them based out of the home. Transfer taxes are expected to level out over the
next year, reflecting the softening of the real estate market. Interest income is projected to
decline by 5% due to lower interest rates and the use of some of the fund balance on major
projects as approved on ballot propositions. The City earns about $3.7 million on its General
fund investments every year.
Overall, General fund revenues are expected to grow by about 2.8%, or $2.5 million, in the
upcoming year. Essentially all of the growth is coming from the tax revenues, mainly property
sales and TOT. Although the City had been experiencing revenue growth between 9% and
17% in the late 199Os, it was not sustainable growth. Much of those increases were due to the
opening of new hotels, restaurants, retail centers, and new home development. As the City
10
Exhibit 1 (cont.)
. Grants (Section 8 Housing Assistance,
Community Development Block Grants);
Donations;
Special fees and assessments (Housing
Trust fund, Maintenance Assessment
districts).
.
The most noteworthy changes in the
Special Revenue funds occurred in three
programs: the Housing Trust, the Buena
Vista Creek Channel Maintenance, and the
CDBG program.
matures, it will be increasingly more difiicult to produce double-digit growth in revenues. The
2.8% gain projected for fiscal year 2003-04 is respectable given that the CPI is only expected to
grow by 2.4% in 2004. This growth is closer to what may be expected in the future.
Special Revenue Funds
Storm Water
All Others Protection
CZoG~ lo% Maintenance Districts
49%
17%
Housing
Trust
Section 8 7%
Other Funds
Revenues from Special Revenue funds are expected to total $11.3 million, just a slight
increase from 2002-03. The types of programs supported within Special Revenue funds are
those funded by specific revenue streams such as:
The Housing Trust fund was set up to
provide funding for the City’s affordable housing programs. Revenues come from inclusionary
housing fees, interest on cash balances, and payments on affordable housing loans. Most
affordable housing loans are set up so that interest and/or principal payments are only due
when funds are available from the project to make the payments; therefore, they are difficult to
predict. For fiscal year 2003, the City expects to receive about $350,000 in repayments. For
fiscal year 2004, no amounts have been estimated for repayments. Most of the fund’s revenue
decrease is due to this difference.
The Buena Vista Creek Channel Maintenance fund shows $129,000 less in revenue for next
year, mainly due to no assessment revenue. The fund has sufficient balances for the work that
needs to be done, so no amounts will be assessed to the property owners for fiscal year 2004.
The other significant increase in estimated revenues was in the CDBG fund, up $569,000 or
64%. The increase is due to the way in which the City receives payments under this grant
program. In order to receive the grant funds, the City must first spend the money and then
request reimbursement from the federal government. Thus, the revenue to be received in fiscal
year 2004 will be used to reimburse the City for expenses incurred in the previous years. The
negative balance of $44,000 shown in the fund as of June 30, 2004 represents an estimate of
the expenditures made for which reimbursements have not been paid.
Enterprise fund revenues for 2003-04 are projected at $31 million, down 1.4% or approximately
$400,000. Enterprise funds are similar to a business in that rates are charged to support the
operations that supply the service. Carlsbad Enterprises include the water, recycled water, and
sanitation services; solid waste management; and the Carlsbad Golf Course. There are no
changes in any of the rate structures anticipated in next fiscal year and no significant changes
projected for any of the other revenue sources.
11
Exhibit 1 (cont.)
Not included in estimated revenues for 2004 is any transfer from the General fund to the Golf
Course fund. The City has been transferring $600,000 per year to this fund to assist in financing
Solid Golf
Waste Course 3% / 0% Sanitation
) 22%
L Recycled
Water
7%
a future municipal golf course. For the
upcoming year, the transfer has not been
proposed, as the project is still in the
permitting process with the environmental
agencies. If the project receives the required
environmental approvals and Council
authorizes the project, the appropriate
transfers and loans will be made at that time.
Other changes in the Enterprise funds are the
result of normal fluctuations in operations.
There are no planned rate increases in any of
the Enterprise funds.
Internal Service funds show estimated revenues of $1 1.3 million for 2003-04, a decrease of
$1.5 million, or 12%, over 2002-03 projections. Internal Service funds provide services within
the City itself and include programs such as the self-insurance funds for Workers’
Compensation, Liability and Health Insurance, as well as Information Technology and Vehicle
Maintenance and Replacement. Departments pay for services provided by these funds;
therefore, the rates charged for the services are based on the cost to provide the service. The
goal of the Internal Service funds is to match their budgeted expenses with charges to the
departments after allowing for a certain level of reserves within the fund.
There are two main reasons for the change in the revenue estimates for the Internal Service
funds. The most significant is the change in the City’s health plans for its employees. A large
number of City employees will be switching from a self-insured plan to the CalPERS Health
plan. Under the CalPERS plan, premiums for the insurance will be paid directly to CalPERS
and will no longer be shown in this fund. This reduced the revenues to the Health Insurance
fund by $2.2 million.
Offsetting that decrease was an increase of $483,000 in the revenues for the Information
Technology fund. Most of that increase is due to a planned transfer from the General fund to
pay for the hardware needed for the new Computer-Aided Dispatch (CAD) system, also known
as the “91 1 ” system. The system will replace the current 13-year-old system as well as provide
new components that will improve the effectiveness of the City’s police force. More information
on these changes can be found in the section of this letter titled “Expenditures.”
Redevelopment revenues are expected to total $2.7 million in the upcoming year, a 17% or
$344,000 increase over the projections for the previous year. Most of the increase is the result
of additional tax increment to be received from the South Carlsbad Coastal Redevelopment
Area.
Under redevelopment law, tax increment can only be used to repay debt incurred. Thus, the
Redevelopment Agency cannot receive taxes greater than the total of what it expects to incur in
the upcoming year plus that amount incurred to date. For fiscal year 2003, the estimated debt
was not sufficient to receive all of the available tax increment since it was such a new
Redevelopment area. For fiscal year 2004, the Agency estimates that it will have incurred
sufficient debt to receive its full share of the tax increment. Thus, the tax increment should
increase to approximately $631,000 from the $1 75,000 expected in fiscal year 2003.
Tax increment in the City’s other Redevelopment area (the Village) is expected to increase by
2% to $1.9 million in fiscal year 2004. As with most property in California, the growth in
assessed values (and property taxes) is limited to no more than 2% per year. The assessed
12
Exhibit 1 (cont.)
value is only increased to the full market value upon the sale of the property. Unless there is
significant resale activity or new development, the increment would not be expected to grow
more than 2% per year.
EXPENDITURES
The City’s Operating budget for 2003-04 totals $1 42.6 million, which
represents an increase of $2.4 million, or 1.7%, from the adopted 2002-03
budget. This increase is mainly the result of slight increases in the General
fund budget. The changes in each of the City’s programs will be discussed
fully below.
Budqetaw Policies
Budget policies were developed using the “Expenditure Control Budgeting” or ECB process
introduced a few years ago. Using this approach, each department was given a block
appropriation containing sufficient funds to provide the current level of services for the upcoming
year. As Carlsbad is a growing city, the block appropriation should contain sufficient funds to
pay for inflationary increases as well as growth in the customer base. This year the calculated
index was 3.5%. However, due to the state of the economy, as mentioned earlier, a “hold the
line” budget approach was taken. Departments were given only a 2% increase in their block
budget and were challenged to use this increase as well as prior savings to fund the inflationary
and growth increases while maintaining the same level of service.
The outcomes desired from this year’s budget process were:
0 No layoffs.
No noticeable cuts in services and service levels.
0 Identification of new revenue generation opportunities.
0 A balanced budget and a long-term plan for staying in balance.
Keeping in mind those outcomes, the following policies were developed:
0
0
No new programs, other than those already scheduled in the CIP.
No new positions unless absolutely necessary.
Block budget increase of 2% plus an additional amount for safety services due to higher
PERS (retirement) costs.
For the 2003-04 budget, the block was calculated as follows:
Personnel and Maintenance and Operation costs were calculated using last year’s block
increased by 2%. The calculated index of 3.5% included 1.6% for growth and 1.9% for
inflation. This amount was reduced to 2% to assist in balancing the budget for the future.
Capital Outlay requests in excess of $10,000 were not included in the block budget.
These one-time items could be requested separately. Approved capital outlay requests
were added to the operating budgets.
Budgets were not to exceed the block amounts and no additional appropriations are expected
during the year except in the case of a significant unanticipated event. Any amounts that are
unspent at the end of the fiscal year will be carried forward in their entirety to the new fiscal
year.
13
Exhibit 1 (cont.)
In addition to the block appropriations, budget requests could be made to implement specific
goals or to operate new facilities. If the request was approved, the additional funds were added
to the budget.
Budqeted Expenditures
Through the application of these guidelines and policies, the 2003-04 Operating budget of
$142.6 million was developed. The theme of this year’s proposed budget is ”preservation” - to
preserve the quality and level of our services while maintaining a balanced budget for now and
in the future. Due to the uncertainties regarding the economy and the State’s budget deficit as
well as significant cost increases looming in the future, management felt the best course of
action was to continue to do what we do well and hold the line on any new items that would add
ongoing commitments to the budget. Thus, this year’s proposed budget maintains the high level
of services Carlsbad’s citizens have come to expect but does not propose any new
enhancements other than those previously planned.
The 2003-04 Operating budget proposes 1.25 new full-time and three-quarter-time employees
and the deletion of 2 police positions that were previously funded by grants, for a net decrease
of .75. The net increases in hourly staff total approximately 1.85 full-time equivalents (FTE).
These changes will bring the City’s workforce to 646 full and three-quarter-time employees and
147.77 hourly FTE. The new employees are proposed to staff new facilities coming on line in
fiscal year 2004 as described below.
New Facilities
The City has a large number of major capital projects scheduled to be built over the next five
years. As the City completes these projects, the costs of maintaining and operating the facilities
are added to the Operating budget.
Carrillo Ranch Park - The Carrillo Ranch Park will open in summer 2003. Total
costs to operate the park are estimated at $383,400. A recreation manager and
a part-time 1,000-hour position were added in the later part of fiscal year 2003 to
get ready for the opening. These recreation positions will create and manage
the interpretive programs, supervise and coordinate exhibit design consultants,
schedule and supervise facility use by renters for special occasions, and perform
the administrative day-to-day operations.
In addition, 1 full-time and 2 part-time 1,000-hour positions (2 FTE total) are proposed in the
fiscal year 2004 budget to maintain the Carrillo Ranch Park grounds and facilities. Sufficient
funding was also added to cover the heat, lights, and other operational costs.
Citvwide Trails Svstem - In 2002, Council authorized 50% of a new park planner to be
dedicated to implementation of a trails program for the City. Since that time, the efforts have
been directed along two paths: (1) the inclusion of trails in new master plans as well as along
circulation element roads, and (2) the acceptance of privately owned trails into the Citywide trail
system. Presently, there are 6.5 miles of trails under the City’s jurisdiction, which must be
maintained, and it is anticipated that an additional 6 or more miles will be added in the next
year. While staff is using volunteers to help with the trail maintenance, some City assistance is
needed to keep up an acceptable level of maintenance. Thus, a part-time 1,000-hour position
(.5 RE) is requested in the budget along with funds to do the maintenance work. The total
budget request is $27,175.
14
Exhibit 1 (cont.)
City Hall CamDus - In December 2001, the City purchased the former Farmer’s Insurance
Building located at the corner of El Camino Real and Faraday Avenue, the geographic center of
the City. For one year after the purchase, the building was leased back to the former owners,
who paid for the operating costs of the building while the City paid for the grounds maintenance
($67,300 in the fiscal year 2003 budget). As of January 2004, the lessee has vacated the
building and the City must now assume the operating costs. Thus, $1 58,300 has been added to
the proposed budget to pay for the heat, lights, and routine building maintenance.
Public Safety
Public safety has always been, and remains, a top Council priority. Although
there is not a significant amount of new money proposed in this year’s Operating
budget for public safety, improvements are under way.
One very significant project planned for the upcoming years is implementation of
the Public Safety Technology Plan. In addition to replacing an aging computer-
aided dispatch system (the “91 1” system), this comprehensive public safety technology project
uses the best technologies to link street officers and investigators with the most expansive and
effective regional information-sharing network in the nation - ARJlS (Automated Regional
Justice Information System). ARJIS directly supports federal anti-terrorism and anti-crime
efforts by providing a huge amount of information to federal agencies in a form that can be
efficiently analyzed and shared.
The project has a number of components and, due to its multi-year nature, has been budgeted
predominantly in the Capital Improvement Program (CIP). The total cost is $3.6 million. The
proposed Operating budget contains $853,000 for hardware, with $563,000 coming from the
General fund and $290,000 from hardware replacement reserves in the Information Technology
fund. There is also $280,000 proposed to be spent from the Asset Forfeiture and other police
grant funds for overtime and soft costs required for implementation of the project. The balance
of the funding, $2.4 million, is shown in the General Capital Construction fund in the CIP.
Another area to receive increased attention next year is the safety and preservation of
Carlsbad’s open spaces. With the emergence of sensitive environmental trusts and preserve
areas, along with the development of the Citywide trail system, the Off-Road Law Enforcement
(ORLE) team has experienced an increase in complaints and calls for service. The ORLE team
provides a unique off-road service through both enforcement and education. During off-road
patrols, officers contact numerous people for a variety of violations such as driving off-road,
illegal dumping of vehicle parts and debris, trespassing, illegal camping, vandalism, drug/alcohol
violations, and abandoned vehicles. This year’s budget requests the purchase of 5 motorcycles
(2 replacements and 3 new) and related equipment, which will be funded 75% from the
Abandoned Vehicle Abatement (AVA) fund and 25% from Police Asset Forfeiture funds. With
the added motorcycles, staff will be able to patrol more frequently and adequately respond to
off-road complaints.
As the population of our City continues to grow, additional police staff has been added to
maintain the level of safety services. Last year, Council added 7 new positions. In the previous
year (fiscal year 2002), 3 officers were added. And in September 2002, Council approved 2
more officers on a temporary basis for the bicycle patrol using the COPS grant funds. The
intention was to eventually absorb the temporary positions through attrition into the permanent
staffing count. This year’s budget shows the elimination of those temporary positions. This is a
paper transaction only, as the positions are vacant and unfunded at this time.
15 ,- I.
Exhibit 1 (cont.)
A change in the Fire safety area was previously approved by Council and is reflected in the
fiscal year 2004 budget. On July 1, 2003, the City of Carlsbad’s Fire Department will become a
member of the North County Dispatch Joint Powers Authority (NCDJPA). The NCDJPA was
formed in July 1984 and currently includes members from the cities of Encinitas, San Marcos,
Solana Beach, Vista, and the Rancho Santa Fe Fire District. An immediate advantage will be
the ability of the NCDJPA to dispatch the closest unit(s) to an emergency scene regardless of
jurisdictional boundaries. The City believes joining the NCDJPA will also improve regional
coordination, create operational efficiencies, and improve cross-jurisdictional response times
with the member agencies. The annual cost associated with being a member of the NCDJPA is
estimated to be $256,000, with the City receiving a discount of 30%, 20%, and 10% in years
one, two, and three respectively.
Technology
The City continues to enhance its use of technology in order to reduce
processing costs and increase customer services. This year’s budget
includes $50,000 to bring recreation class registrations into the homes of our
citizens. The plan is to implement an on-line registration system so that busy
moms, dads, seniors, and everyone else will be able to register for their
favorite City class at their computer any time of the day or night.
The budget also includes $1 00,000 to provide links between the Document Management
System (DMS) and the Geographic Information System (GIs). This project would allow a
person to click on the GIS map for a particular area of the City and obtain all of the engineering
documents related to that particular point. This will greatly reduce the amount of time spent by
City staff in locating and viewing documents and will ensure that they have the appropriate
plans for the work they are doing.
Customer Service
One of Council’s goals is top-quality service, which means serving our customers well.
Although there are no new customer service initiatives funded in the budget this year due to
economic concerns, it does not mean that the City is not continuing its efforts to provide the best
service to our citizens and customers. There are numerous goals proposed for the 2004 fiscal
year that will enhance the service we provide without costing a lot of extra money. Some of
these include process changes so our services can be provided faster. Some involve setting
standards so the service quality can be measured and improvements made where necessary,
and others involve improving communications with our citizenry and customers so that everyone
can understand and participate in their City government. Providing opportunities for lifelong
learning is another area where no money has been added but improvements are happening.
For 2004, some funding has been shifted in the library so that the Centro De Informacion can be
opened longer - 11 hours more per week. This will give the Spanish-speaking community
longer access to the information provided in this very unique facility.
Cost Savings
With the emphasis this year on controlling costs, a hard look was taken at the numbers and
types of vehicles being purchased as replacements for the City’s current fleet. Each vehicle
was reviewed to determine the need for replacement at this time as well as whether the
replacement could be a smaller, less costly, more fuel-efficient vehicle without hurting the
effectiveness of the program. The results of this review was that of the 58 vehicles that met the
replacement criteria outlined in Administrative Order Number 3, only 21 vehicles were selected
for replacement. Of the 21 units selected for replacement, 9 vehicles could be downsized.
16
Exhibit 1 (cont.)
FUND
GENERAL FUND
SPECIAL REVENUE
ENTERPRISE
INTERNAL SERVICE
REDEVELOPMENT
TOTAL
Connecting Community, Place, and Spirit
BUDGET BUDGET $ % 2002-03 2 0 0 3 - 0 4 CHANGE CHANGE
$ 82.8 $ 84.7 $ 1.9 2.3%
10.6 10.9 0.3 2.8%
30.3 31.4 1.1 3.6Yo
1.7 1.9 0.2 11.8%
$ 140.2 $ 142.6 $ 2.4 1.7%
14.8 13.7 (1.1) (7.4%)
A new initiative began in this year with the ultimate goal of connecting community, place, and
spirit. The initiative was kicked off with a conference held in March 2003. The purpose of the
2-112 day conference was threefold: first, to explore what we collectively want to become as a
city over the next fifty years; second, to gather ideas for a new Civic Center and ways to best
use the former Farmer’s Insurance property; and third, to begin connecting.
To that end, the City brought together community members from a wide range of community
groups as well as City staff and began a collective dialogue about the future. The conference
was not about deciding on a location for a Civic Center. It was about understanding what a
Civic Center for Carlsbad should or could be. The conference was not about reaching a
consensus or agreement on priorities or plans. It was about understanding the range of
possibilities, priorities, and desires. And, the conference was not about reaching an end point
along a linear process. It was about creating a starting point for a dialogue - complex, rich, and
nonlinear. It was focused less on what the City should do, and much more on what citizens want
and can do together. The intent is to keep the dialogue and joint effort going indefinitely.
For 2004, the process will continue by distilling the themes from the conference and going back
to the community to see if what we gathered from the conference is representative of the
community at large. From there, a vision for the community will be developed and refined and a
plan proposed to assist the community in achieving its vision. The proposed budget contains
$125,000 to fund these activities.
Budqet bv Fund Tvpe
This table below shows the changes in the operating budget for fiscal year 2003-04 compared
to the adopted budget for fiscal year 2002-03.
The General fund contains most of the discretionary revenues that finance the basic core of City
services. However, this should not diminish the importance of the other operating funds, as
they also contribute to the array of services available within Carlsbad. The remainder of this
section will provide more information about the proposed budgeted expenditures by fund and
program.
17
Exhibit 1 (cont.)
2003-04
$ 3.7
General Fund
CHANGE CHANGE
$ 0.0%
Total budget for the General fund is $84.7 million, which is 2.3 % more than the previous budget
of $82.8 million. The increase is mainly due to the 2% increase given to departments in their
block budget.
GENERAL FUND EXPENDITURES
BY MAJOR SERVICE AREA
5.3
29.2
6.2
14.3
15.7
8.0
2.3
FUND
POLlCY/LEADERSHIP
ADMINISTRATIVE SERVICES
PUBLIC SAFETY
COMMUNITY DEVELOPMENT
COMMUNITY SERVICES
PUBLIC WORKS
CONTINGENCY
NON-DEPARTMENTAL
(0.1) -1.9%
0.8 2.8%
0.0%
0.2 1.4%
0.6 4.0%
0.6 8.1%
(0.2) -8.0%
TOTAL
(In Millions)
BUDGET I BUDGET I $ I YO 2002-03
$ 3.7
5.4
28.4
6.2
14.1
15.1
7.4
2.5
$ 82.8 I $ 84.7 I $ 1.9 I 2.3%1
The Council Contingency account, which is available for unanticipated emergencies or
unforeseen program needs, is budgeted at $2.3 million, or approximately 2.5% of the 2003-04
General fund budget, which is consistent with the $2.5 million budgeted in the prior year.
During 2002-03, less than $600,000 of the contingency account was used.
Non-departmental expenses include payments for debt service, transfers to other funds, and
administrative and other expenses not associated with any one department. The increase of
approximately $600,000 is due mainly to a $563,000 transfer from the General fund to the
Information Technology fund to help fund the CAD hardware costs and a new budget of
$250,000 to fund Citywide litigation costs. Neither of these items was in the previous year’s
budget. In addition, the Infrastructure Replacement fund transfer was increased by $1 05,000.
This amount is budgeted at about 4% of General fund revenues. The increases were offset by
$600,000, as no amount was budgeted for the transfer to the Golf Course. The Golf Course
fund has sufficient cash to fund its current obligations, so no transfer was proposed.
The remainder of the changes in the recommended General fund budget are relatively minor.
These are addressed below by Major Service Area (MSA).
1 The Policy/Leadership Group includes all elected officials and the City
Manager’s Office. This budget is essentially the same as last year other
than a decrease in the Communication budget, which is the result of
one-time capital outlay purchases in the prior year.
= There were minimal changes in the total budget for Administrative Services. The decline
is due to a one-time charge for a new cash management system in the previous year.
Also, note that the finance and purchasing functions have been combined and are now
shown together under Finance.
0 The growth in Public Safety is due, for the most part, to increases in the block budget for
the increased safety PERS costs. Also the Fire budget had a corresponding decrease
due to a $475,000 one-time payment to pay off of the 800mHz system in the prior year.
18
Exhibit 1 (cont.)
. In the Community Development area, the .l% decrease is mainly due to some one-time
costs in the previous year, offset by an increase in the amount budgeted for the
“Connecting Community, Place, and Spirit” program.
In the Community Services area, the 1.3% increase is mainly due to the block budget
increases. In addition, as mentioned earlier, additional money has been budgeted for
the costs associated with the maintenance of the Citywide trails and the operating of
Carrillo Ranch Park.
.
. Public Works shows an overall increase of 3.8%. This increase is from the block budget
increase as well as the additional funds added to the Parks and Facilities budgets for the
maintenance of new facilities including Carrillo Ranch Park.
Capital outlay expenses totaling approximately $31 3,000 have been included in the
General fund budget.
.
Changes In Other Funds
Special Revenue funds, at $10.9 million, show an increase in anticipated spending of
approximately $357,000, or 3%. Most of the increase can be attributed to the $250,000
budgeted in Police Asset Forfeiture to be used for temporary help in implementing the new
computer-aided dispatch system. In addition, the Storm Water Protection Program fund budget
increased by 15%. This increase is mainly due to increased permit costs and a new database.
Of special note is the Median Maintenance fund. This is a Citywide Landscape Maintenance
fund, which collects assessments paid by property owners to pay for the maintenance of the
City’s medians. Using current budget estimates for maintaining current service levels, staff
anticipates that this fund will run short of cash by approximately $150,000 by the end of fiscal
year 2004. Staff is currently evaluating the options available to Council and will be asking for
Council direction in the near future. The assessments in this District cannot be increased
without a vote of the property owners.
Enterprise funds total $31.4 million, which is an increase of $1 million, or
3.6%. The most significant change is in the Sanitation budget. The proposed
$1.3 million increase is mainly for 2 special projects being proposed for fiscal
year 2004. The first is $975,000 for access hole rehabilitations. This project
will clean and refurbish access holes older than 30 years, or replace if not able
to refurbish. The second project is $105,000 for flow monitoring and video
inspections. This will provide information on current flow rates and the existing
condition of the Vallecitos and Buena interceptor sewers and access holes.
As part of the ongoing financial management program, the City annually prepares five-year
forecasts for both the Water and Sanitation funds. The Water funds forecast shows that the
fund will carry some cash balances forward over the next several years as the construction of
the 4 MGD recycled water plant is completed. When that plant goes into service, the operating
requirements will be reevaluated. During this time period, no water rate increases are
anticipated.
For the Sanitation fund, the forecast shows that a rate increase in the range of 4-5% will most
likely be needed in the next fiscal year (2004-05) to keep the fund balance reserve within the
desired range of 40% of the Operating budget.
19
Exhibit 1 (cont.)
The Internal Service funds budgets decreased in total by $1.1 million, or 7%. The Internal
Service funds are self-supporting through user charges. Changes occurred in a number of
these funds:
rn The Worker’s Compensation fund budget was increased by $240,000 due to rising
health care costs. . The Health Insurance budget shows a decline of $1.6 million due to the change from the
self-insured plan to the CalPERS Health Plan, mentioned earlier under the Revenues
section. Some appropriations for self-insurance have remained in this fund to pay for
incurred but unreported claims as of fiscal year-end.
The Vehicle Replacement fund budget varies from year to year depending on the need
for replacements. As discussed earlier, the decline in this fund was possible due to a
concentrated effort to downsize the City’s fleet. A list of the requested vehicle
replacements can be found at the end of this document. . The Information Technology fund shows an increase in its budget of $966,000. This is
mainly due to the $853,000 budgeted in this fund for hardware for the Public Safety
Technology Plan (computer-aided dispatch and related components).
The Redevelopment Agency budgets have increased for 2003-04 by a total of $172,000. This
is mainly due to additional amounts budgeted for the South Carlsbad Redevelopment Area.
Work is beginning on the master plan for the area, so more of staff’s time (hence, salaries) is
being spent in this area.
SUMMARY
The City of Carlsbad has fared well from an economic viewpoint. It is evident that the planning
and foresight by the City Council and residents have provided a sound economic base for the
City. The increased job opportunities from ,the development of the industrial and commercial
areas, as well as Carlsbad’s reputation as a quality city, are keeping the demand for housing
growing, which in turn increases the property tax base. The continued opening and expansion
of the commercial ventures enhance Carlsbad’s standing as a destination resort and give it the
revenues needed to provide quality services to the citizens and businesses. All of these events
add to the diversity and strength of Carlsbad’s economic base, which will provide the funding for
additional services needed to maintain the quality of life in Carlsbad.
The challenges for the future will revolve around changing from a developing City to a fully built
City; it will be about managing costs while continuing to look for appropriate revenue streams
sufficient to pay for the services desired by the citizens. This year’s budget reflects the
anticipated achievement of Council’s vision and goals for the City. It allocates the available
funding in a manner that proactively plans for the future. This plan will provide top-quality
services to all who live, work, and play in Carlsbad.
20
Exhibit 2 CITY OF CARLSBAD
OPERATING FUNDS
PROJECTED FUND BALANCES
UNRESERVED PROJECTED
BALANCE ESTIMATED ESTIMATED FUND RESERVED BALANCE
FUND JULY 1,2002 REVENUES EXPENDITURES TRANSFERS BALANCES JUNE 30,2003
GENERAL FUND 1 70,704,317
SPECIAL REVENUE I
STORM WATER PROTECTION 1,222,294
POLICE ASSET FORFEITURE 589,178
COPS GRANT 178.085
POLICE GRANTS 234.229
HOUSING SECTION 8 346,287
HOUSING TRUST FUND 4296,363
LIBRARY ENDOWMENT FUND 276,538
LIBRARY GIFTSiBEQUESTS 11 8,556
TREE MAINTENANCE 917,022
MEDIAN MAINTENANCE 16,842
STREET LIGHTING 1,155,880
BUENA VISTA CRK CHNL MNT 841,814
ARTS SPECIAL EVENTS 82,730
SENIOR NUTRITION 3,773
SENIOR DONATIONS 176,540
CDBG ENTITLEMENTIREHAB (11,454)
COMMUNITY ACTIVITY GRANTS 1.080.228
CULTURAL ARTS PROGRAM 225.894
SISTER CITY DONATIONS 4,596
ARTS GENERAUGALLERY DONATIONS 92,838
TOTAL 11.848.233
ENTERPRISE
WATER OPERATIONS 10,353,437
RECYCLED WATER OPERATIONS 1,375,404
SEWER OPERATIONS 4,602,167
SOLID WASTE MANAGEMENT 4,014,828
GOLF COURSE 1,439,035
TOTAL 21,784,871
IINTERNAL SERVICE I
WORKERS COMP SELF INSURANCE 1,812,090
RISK MANAGEMENT 2,877,068
HEALTH INSURANCE 679,581
RECORDSMANAGEMENT (1 56,110)
VEHICLE MAINTENANCE 442,227
VEHICLE REPLACEMENT 5,610,132
INFORMATION TECHNOLOGY 2.602.706
TOTAL 13.867.694
IREDEVELOPMENT I
VILLAGE OPERATIONS I DEBT SVC 1,739,863
VILLAGE LOW/MOD INCOME HOUSING 1,199,704
SCCRA OPERATIONS I DEBT SVC 374,801
SCCRA LOWIMOD INCOME HOUSING 110,228
TOTAL 3,424,596
88,374,000
1,146,419
65,000
172.000
95,600
5,324,822
1,245,300
12,000
76,000
623,600
456,900
853,175
137,000
17,000
0
25,000
883,000
70,000
10,000
700
21.000
11,234,516
20,704,100
2,487,500
6,633,000
926,000
715,000
31,465,600
670,231
730,009
3,137,000
1,030,400
1,599,192
1,754,369
3,960,300
12.881.501
1,624,601
440,000
221,000
50,000
2,335,601
75,746,129
1.21 8.729
101,122
154,677
148.323
5,348,824
325,413
6,000
80.283
680,000
581,023
1,050,000
86,090
39,035
3,773
0
1,712,551
95,000
20,000
0
28,832
11,679,675
19,243,574
1,658.624
6,559,430
202,856
181,154
27,845,638 -
1,606,818
1,614,910
2,937,452
952,410
1,774,674
1,957,151
3,444,400
14,267,815
1.627.798
202,722
170,588
32,370
2,033,478
300,000 83,632,188
1,149,984
553,056
195,408
181,506
322,285
5,216,250
282,538
114,273
860,622
(1 07,281)
959,055
892,724
60,695
0
201,540
(841,005)
(1,000,000) 55,228
215,894
5,296
85,006
10,403,074
11,813.963
2,204,280
4,675,737
4,737,972
1.972.881
25,404,833
875,503
1,992,167
879,129
(78.120)
266,745
(6,261,350) (854,000)
(1,225,001)) 1,893,606
4,975,030
(300,000) 1,436,666
1,436,982
425,213
127.858
3,426,719
TOTAL OPERATING FUNDS $121,629,711 $146,291,218 $131,592,735 $0 ($8,486,350) $127,641,844 I
Exhibit 2 (cont.) CITY OF CARLSBAD
OPERATING FUNDS
PROJECTED FUND BALANCES
PROJECTED PROJECTED
BALANCE ESTIMATED ESTIMATED FUND BALANCE
FUND JULY 1,2003 REVENUES EXPENDITURES TRANSFERS JUNE 30,2004
GENERAL FUND
SPECIAL REVENUE
STORM WATER PROTECTION
POLICE ASSET FORFEITURE
COPS GRANT
POLICE GRANTS
HOUSING SECTION 8
HOUSING TRUST FUND
LIBRARY ENDOWMENT FUND
LIBRARY GIFTUEEQUESTS
TREE MAINTENANCE
MEDIAN MAINTENANCE
STREET LIGHTING
BUENA VISTA CRK CHNL MNT
ARTS SPECIAL EVENTS
SENIOR NUTRITION
SENIOR DONATIONS
CDBG ENTITLEMENTIREHAB
COMMUNITY ACTIVITY GRANTS
CULTURAL ARTS PROGRAM
SISTER CITY DONATIONS
ARTS GENERAL DONATIONS -
83,632,186
1.149.984
553,056
195,408
181,506
322,285
5,216,250
282.538
114,273
860,622
(1 07,281 )
959,055
892,724
60,695
0
201,540
(841,005)
55.228
215,894
5,296
TOTAL
85.006
10,403,074
90,890,000
1,093,950
55,000
167,000
0
5,544.729
810,000
12,000
41,500
616,900
457,400
885,080
7,500
15,000
0
20,000
1,451,700
45,000
10,ooo
2,000
20,000
11,254,759
84.729.747
1,244,750
403.900
182,915
30,000
5,549,702
256,340
8.000
67,620
697,979
504,841
1,165,034
1,629
36,103
0
0
654,408
60,000
20,000
2,000
13,500
10.896.721
[ENTERPRISE
WATER OPERATIONS 1 1,813,963
RECYCLED WATER OPERATIONS 2,204.280
SEWER OPERATIONS 4,675,737
SOLID WASTE MANAGEMENT 4,737,972
GOLF COURSE 1.972.881
TOTAL 25,404,833
21,023,400
2,181,300
6,682,400
1,041,000
110,000
31,038,100
20,874.869
1,913.1 17
8,029,909
276,761
300,000
31,394,656
300,000 90,092,441
999,184
204,156
179,493
151,506
317,312
5,769,910
288,538
88.153
779,543
(1 54,722)
679,101
898,595
39,592
0
221,540
(43,713)
40,228
205.894
5.296
91,506
10,761.1 12
11,962,494
2,472,463
3.328.228
5,502,211
1.782.881
25.048.277
JINTERNAL SERVICE
WORKERS COMP SELF INSUR
RISK MANAGEMENT
HEALTH INSURANCE
RECORDSMANAGEMENT
VEHICLE MAINTENANCE
VEHICLE REPLACEMENT
INFORMATION TECHNOLOGY
TOTAL
875,503
1,992,167
879,129
(78,120)
266,745
(854,000)
1,893,606
4,975,030
779,000
737,000
925,000
955,500
1,784,000
1,727.000
4,443,500
11,351,000
1,327,605
1,505,019
1,521,636
1,126,466
1,889,420
873.000
5,461,325
13,704,471
326.898
1,224,148
202,493
(249.086)
161,325
0
875,781
2,621,559
IREDEVELOPMENT I
VILLAGE OPERATIONS I DEBT SVC 1,436,666
VILLAGE LOWIMOD INCOME HOUSING 1,436,982
SCCRA OPERATIONS I DEBT SVC 425,213
SCCRA LOW/MOD INCOME HOUSING 127,858
TOTAL 3,426,719
1,672,500
367,000
489,200
161,400
1,563,217
98.948
183.528
38.117
2,690,100 1,883,810
(300,000) 1,245,949
1,705,034
730,885
251,141
3,933,009
~ ~ ~ ~~ ~
$0 $1 32,456,398 TOTAL OPERATING FUNDS $127,841,844 $147,223,959 $1 42,609,405
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3
ACTUAL PROJECTED
REVENUE REVENUE
REVENUE SOURCE 2001 -02 2002-03
IGENERAL FUND
ESTIMATED
REVENUE
2003-04
DIFFERENCE AS %
OF FY 02-03 2002-03 TO
PROJECTED 2003-04
TAXES
PROPERTY TAX
SALES TAX
TRANSIENT TAX
FRANCHISE TAX
BUSINESS LICENSE TAX
TRANSFER TAX
TOTAL TAXES
$22,286,368
21,660,902
8,533,329
7,494,684
2,440,387
1,193,198
63,608.868
$24,600,000
23,660,000
8,566,000
3,693,000
2,400,000
1,097,000
64,016,000
$26,91O,OOC
25,080,006
9,020,000
3,830.000
2,520,ooa
1,100,000
68,460.000
9.4% 2,310,000
6.0% 1,420,000
5.3% 454,000
3.7% 137,000
5.0% 120,000
0.3% 3,000
6.9% 4,444,000
INTERGOVERNMENTAL
VEHICLE LICENSE FEES
OTHER
TOTAL INTERGOVERNMENTAL
5,350,000
i.i3o.ooa
4,675,269
1,553,137
6,228.406
5,016,000
1,643,000
6,659,000
6.7% 334,000
-31.2% (51 3,000)
-2.7% (179,000) - 6,480,000
LICENSES AND PERMITS
BUILDING PERMITS
OTHER LICENSES 8 PERMITS
TOTAL LICENSES & PERMITS
1,085,819
912,391
1,998,210
815,000
900,000
1,715,000
680,000
750,000
1,430,000
-16.6% (135,000)
-16.7% (150,000)
-1 6.6% (285,000)
CHARGES FOR SERVICES
PLANNING FEES
BUILDING DEPT. FEES
ENGINEERING FEES
AMBULANCE FEES
RECREATION FEES
OTHER CHARGES OR FEES
TOTAL CHARGES FOR SERVICES
(300,000)
(120,000)
(700,000)
70,000
' 570.283
750,423
1,506,944
1,212,036
1,264,263
71 5,233
6,019.182
900,000
700,000
2,200,000
1,250,000
1,284,000
900,000
7,234,000
600,000
580,000
1,500,000
1,320,000
1,310,000
930,000
6,240,000
-33.3%
-17.1%
-31.8%
5.6%
2.0%
3.3%
-13.7%
3.3%
26,000
30,000
(994,000)
897.533 900.000 930.000 FINES AND FORFEITURES 30,000
INCOME FROM INVESTMENTS
AND PROPERTY' 4,537,254
2.163.257
4,350,000
2.800.000
3,950,000
2,700,000
700,000
90,890,000
INTERDEPARTMENTAL CHARGES -3.6% (1 00,000)
OTHERREVENUESOURCES 871,957 700,000 0.0% 0
2.9Oh 2,516.000 88.374.000 TOTAL GENERAL FUND 86,324,667 ..
Interest is calculated on an amortized cost basis.
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3 (cont.)
AS% DIFFERENCE
OF FY 02-03 2002-03 TO
PROJECTED 2003-04
ACTUAL PROJECTED
REVENUE REVENUE
REVENUE SOURCE 2001 -02 2002-03
ESTIMATED
REVENUE
2003-04
SPECIAL REVENUE FUNDS
STORM WATER PROTECTION
TRANSFER FROM GENERAL FUND
INTEREST
1,873,189
11 6.497
1,076,419
70.000
1,023,950
70.000
-4.9%
0.0%
(52,469)
0
1,989,686 1,146,419 1,093,950 -4.6% (52,469)
POLICE ASSET FORFEITURE
ASSET FORFEITURES
INTEREST
TOTAL
49,650
34,626
84.276
40,000
25.000
65,000
-25.0% (10,000)
0.0% 0
-15.4% (10,000)
30,000
25,000
55.000
COPS GRANT
STATE FUNDING (AB3229)
INTEREST
TOTAL
166,998
16,395
183,393
165,000
7,000
172.000
i60,ooa
7.000
167.000
-3.0% (5,000)
0.0% 0
-2.9% (5,000)
POLICE GRANTS
STATE GRANT
INTEREST
OP TRANS IN
TOTAL
0
0
123,162
18,715
7.492
149,369
80,900
9,000
5,700
95,600
-1 00.0% (80,900)
-1 00.0% (9,000)
-100.0% (5.700)
-100.0% (89,900)
0
HOUSING - SECTION 8
INTEREST
FEDERAL GRANT
OTHER
TOTAL
2,621
3,899.081
2,061
3.903.763
0
5,324.822
0
5,324.822
0
5,544,729
0
5,544,729
0.0% 0
4.1% 219,907
0.0% 0
4.1% 219,907
HOUSING TRUST FUND
INTEREST
INCLUSIONARY HOUSING FEES
OTHER
TOTAL
502,215
704,909
44,116
1,251,240
652,300
570,000
23,000
1,245,300
300.000
510,000
0
810,000
-54.0% (352,300)
-10.5% (60,000)
-100.0% (23,000)
-35.0% (435,300)
LIBRARY ENDOWMENT FUND
INTEREST
TOTAL
16,604
16.604
12,000
12.0M)
12,000
12,000
0.0% 0
0.0% 0
LIBRARY GIFTWBEQUESTS
GIFTSBEQUESTS
INTEREST
TOTAL
71.000
5.000
47,914
6.645
M.559
37,000
4,500
41,500
-47.9% (34,000)
-10.0% (500)
-45.4% (34,500) 76,000
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
ACTUAL PROJECTED
REVENUE REVENUE
REVENUE SOURCE 2001 -02 2002-03
ESTIMATED
REVENUE
2003-04
TREE MAINTENANCE
INTEREST
MISC. REIMBURSEMENTS
TREE MAINTENANCE FEES
INTERDEPARTMENTAL
TOTAL
MEDIAN MAINTENANCE
INTEREST
MEDIAN MAINTENANCE FEES
OTHER
TOTAL
STREET LIGHTING
INTEREST
INTERDEPARTMENTAL
STREET LIGHTING FEES
OTHER
TOTAL
BUENA VISTA CREEK CHNL MAINT
INTEREST
BUENA VISTA FEES
TOTAL
ARTS SPECIAL EVENTS
INTEREST
DONATIONS
TOTAL
SENIOR NUTRITION(2)
GRANTS
DONATIONS
TOTAL
58,042
0
493,553
82,000
633,595
3.762
444,267
n
448,029
73,612
38,500
740,655
0
852,767
50,742
2,163
52,905
4,665
23.225
27,890
1 10,995
97,831
208,826
35,000
40,500
458,100
90,000
623,600
0
422,500
34,400
458,900
46,000
38,500
703,160
65,515
853,175
37,000
100,000
137,000
3,000
14.000
17,000
30,00(
37,90t
459,OOt
90,oot
616,90t
C
423,00(
34,40C
457,40(:
20,ooc
38,50(3
704,OOC
122,580
885,08C
7,500
0
7,500
3,000
12,000
15,000
0
Exhibit 3 (cont.)
AS % DIFFERENCE
OF FY 02-03 2002-03 TO
PROJECTED 2003-04
-14.3% (5,000)
-6.4% (2,600)
0.2% 900
0.0% 0
-1.1% (6.700)
0.0% 0
0.1% 500
0.0% 0
0.1% 500 -
-56.5% (26,000)
0.0% 0
0.1% 840
87.1% 57,065
3.7% 31,905
-79.7% (29,500)
-100.0% (1 00,000)
-94.5% (1 29,500)
0.0% 0
-14.3% (2,000)
-1 1.8% (2aW
0.0%
0.0%
0
0
0.0% 0 -
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3 (cont.)
ESTIMATED DIFFERENCE
REVENUE OF FY 02-03 2002-03 TO , PROJECTED 2003-04 2003-04
ACTUAL PROJECTED
REVENUE REVENUE
REVENUE SOURCE 2001 -02 2002-03
SENIOR DONATIONS
INTEREST
DONATIONS
OTHER
TOTAL
7,000
18.000
0
11,168
25,297
1,100
37,565
6,000
14,000
0
20,000
30,000
797,700
624.000
1,451,700
0
45,000
45.000
10,000
10,Ooo
4,000
16.000
20,000
-14.3% (1,000)
-22.2% (4,000)
0.0% 0
~ -20.0% (5,000) 25,000
CDBG ENTITLEMENT/REHAB
INTEREST
GRANT REVENUE (PRIOR YEARS)
GRANT REVENUE
TOTAL
-9.1% (3,000)
0.0% 797,700
44,724
0
413,549
458,273
33,000
0
850,000
883,000
-26.6% (226,000)
64.4% 568,700
COMMUNITY ACTIVITY GRANTS
OPERATING TRANSFER IN
INTEREST
TOTAL
25,000
45.000
0
64,873
64,873
-100.0% (25,000)
0.0% 0
-35.7% 0 - 70,000
CULTURAL ARTS PROGRAM
INTEREST
TOTAL
13.834 10.000 0.0% 0
0.0% 0 13,834 10,000
ARTS GENERAUGALLERY DONATIONS
INTEREST
DONATIONS
TOTAL
275
951
1,226
4,000
17,000
21 .ooo
0.0% 0
-5.9% (1 VOoo)
-4.8% (1,000)
SISTER CITY DONATIONS
INTEREST
DONATIONS
OTHER
TOTAL
150.0%
200.0%
0.0%
300
1,000
0
5,854
8,572
0
14.426
200
500
0
700
500
1,500
2,000 ___( 350.0% 1.300 ,
11,254,759 I 0.2% 20,243 10,447,099 11,234,516 TOTAL SPECIAL REVENUE FUNDS
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
ACTUAL PROJECTED
REVENUE REVENUE
REVENUE SOURCE 2001 -02 2002-03 IENTERPRISE FUNDS J
WATER OPERATIONS
WATER SALES
READY TO SERVE CHARGES
PROPERTY TAXES
NEW ACCOUNT CHARGES
BACK-FLOW PROGRAM FEES
PENALW FEES
INTEREST
ENGINEERING 8 PLAN CHECK FEES
ENGINEERING OVERHEAD
SERVICE CONNECTION FEES
AGRICULTURAL CREDITS
OTHER
TOTAL
RECYCLED WATER
WATER.SALES
READY-TO-SERVE CHARGE
RECYCLED WATER CREDITS
INTEREST
OTHER
TOTAL
SANITATION OPERATIONS
SERVICE CHARGES
LATERAL CONNECTIONS
PRE-TREATMENT CHARGES
ENGINEERING OVERHEAD
PENALTY FEES
INTEREST
OTHER
TOTAL
SOLID WASTE MANAGEMENT
INTEREST
RECYCLING FEES (AB939)
PENALTY FEES
NON-JURISDICTIONAL FEES
STATE GRANT
TOTAL
GOLF COURSE
TRANSFER FROM GENERAL FUND
MISCELLANEOUS
INTEREST
TOTAL
13,674,059
3,483,988
1,540,750
123,080
98.873
167,547
771,099
30,203
241,979
1 85,084
173,974
608,705
21,099,341
1,136,209
78.248
380,184
582,862
10.171
2,187,674
5,818,201
15,000
44,306
273,210
41,059
368.143
0
6,559,919
230,600
224,122
24,870
256,204
23,323
759,119
0
183,729
125,181
308.910
13,740,600
3,600,000
1,656,300
120,Ooo
105,000
200,000
525,000
30,200
300,000
179,000
158,000
90,000
20,704,100
1,244.700
84.000
489.800
625,000
44.000
2,487,500
5,936,000
28,000
55.000
290,000
55,000
257,000
12,000
6,633,000
185,000
232,000
35,000
440,000
34,000
926,000
800,000
0
1 15,000
715,000
TOTAL ENTERPRISE FUNDS 30 914 983 31 4f.5 8OO
~~
ESTIMATED
REVENUE
2003-04
14,058,000
3,683,100
1,672.800
116,400
107,100
200,000
428,000
30,200
309,000
173,600
153,200
92,000
21,023,400
1,291,000
85,700
548,700
211,000
44,900
2,161,300
6,073.1 00
28.800
55,900
298,700
56,100
157,600
12,200
6,682,400
180,000
225,000
20,000
588,000
0
31,038,100
Exhibit 3 (cont.)
DIFFERENCE AS %
OF PI 02-03 2002-03 TO
PROJECTED 2003-04
2.3%
2.3%
1 .O%
-3.0%
2.0%
0.0%
-18.5%
0.0%
3.0%
-3.0%
-3.0%
2.2%
317,400
83,100
16,500
(3,600)
2,100
0
(97,000)
0
9,000
(5,400)
(4,800)
2,000
31 9,300
3.7% 46,300
2.0% 1,700
12.0% 58,900
-66.2% (414,000)
2.1% 900
-12.3% (306,200)
2.3% 137.100
2.9% 800
1.6% 900
3.0% 8,700
2.0% 1,100
-38.7% (99,400)
1.7% 200 ~. .
0.7% 49,400
-2.7% (5.000)
-3.0% (7,000)
-42.9% (15,000)
33.2% 146,000
-1 1.870 (4,000)
12.4% 115.000
-100.0% (600.000)
0.0% 0
-4.4% (5,000)
(1 1 (605,000)
-1.4% (427,500)
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
ESTIMATED
REVENUE I ACTUAL PROJECTED
REVENUE REVENUE
Exhibit 3 (cont.)
AS % DIFFERENCE
OF FY 02-03 2002-03 TO
REVENUE SOURCE 2001-02 2002-03
INTERNAL SERVICE FUNDS I 2003-04 PROJECTED 2003-04
29,000
750,000
WORKERS COMP SELF-INSURANCE
INTEREST 108,587 70,000
INTERDEPARTMENTAL 536,690 600,231
OTHER 186,964 0
TOTAL 832,241 670,231
VEHICLE MAINTENANCE
INTERDEPARTMENTAL 1,444,199 1,481,192
INTEREST 25,963 18,000
OTHER 103,196 100,000
TOTAL 1,573.358 1,599,192
VEHICLE REPLACEMENT
INTERDEPARTMENTAL 1,398,984 1,464,369
INTEREST 321,918 250,000
OTHER 185,102 40,000
TOTAL 1,906,004 1,754,369
-58.6% (41,000)
25.0% 149,769
0.0% 0
16.2% 108,769
1,675.000
9,000
100,000
1,764,000
1,467,000
260,000
0
1,727,000
-24.4% (28,000) INTEREST 176,949
INTERDEPARTMENTAL 737,160 650,000
OTHER 10,300 -100.0% (15,000)
TOTAL 924,409 730,009 737,000 1 .O% 6,991
8.3% 49,991
LIABILITY SELF-INSURANCE
HEALTH INSURANCE
INTEREST 40,529 37,000 3,000 -91.9% (W000)
INTERDEPARTMENTAUREIMB. 2,712,833 3,100,000 922,000 -70.3% -100.0%
TOTAL 2,753,362 3,137,000 925,000 -70.5% (2,212,000) - -
0 0
RECORDS MANAGEMENT
INTEREST
INTERDEPARTMENTAL
OTHER
TOTAL
563.000
0 0 0 0.0% 0
1,030,400 955,500 -7.3% (74,900)
0.0% 0
1,030,400 -7.3% (74,900)
788, loo
174,202
962,302
INFORMATION TECHNOLOGY
INTEREST 154,031 125,000 79,000
INTERDEPARTMENTAL 3,646,212 3,835,300 1 3,801,500 I
OPERATING TRANSFER IN
4,443,500 H TOTAL 3,800,243 3,960,300
13.1% 193,808
-50.0% (9DW
0.0% 0
-36.9% 184,808
0.PA 2,631
4.0% 10,000
-100.0% (40,000)
-1 5% (27,369)
-36.8% (46.000)
-0.9% (33,800)
0.0% 563,000
12.2% 483.200
TOTAL INTERNAL SERVICE FUNDS 12,751,919 12,881,501 I 1 1,351,000 I -1 1.9% (1,530,501)
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3 (cont.)
ACTUAL PROJECTED
REVENUE REVENUE
REVENUE SOURCE 2001-02 2002-03 I IREDEVELOPMENT FUNDS
VILLAGE OPERATIONS I DEBT SERVICE
RENTAL INCOME
TAX INCREMENT
ADMINISTRATIVE FEES
INTEREST
OTHER
OPERATING TRANSFER IN
TOTAL
VILLAGE LOW AND MOD INCOME HSNG
TAX INCREMENT
INTEREST
OTHER
TOTAL
SCCRA OPERATIONS I DEBT SERVICE
TAX INCREMENT
INTEREST
OPERATING TRANSFER IN
TOTAL
SCCRA LOW AND MOD INCOME HSNG
TAX INCREMENT
INTEREST
TOTAL
1
17,054
1,489.901
0
108,746
15,516
0
1,631,217
372,475
109,542
0
482.017
376,202
20,492
50,000
446,694
125,145
4,428
125,145
17.685
1,488,000
42,616
72,300
4,000
0
1,624,601
332,000
108,000
0
440,000
131,000
10,000
80,000
221 ,000
44,000
6.000
50,000
TOTAL REDEVELOPMENT FUNDS 2,685,073 2,335,601
ESTIMATED
REVENUE
2003-04
17,600
1,517,000
43,000
60,000
34,900
0
1,672,500
339,000
28,000
0
367,000
475,000
14,200
0
489,200
156,400
5.000
161,400
2,690,100
DIFFERENCE AS %
OF FY 02-03 2002-03 TO
PROJECTED 2003-04
-0.5% (85)
2.0% 29,ooo
0.9% 384
-1 7.0% (12,300)
772.5% 30,900
0.0% 0
3.0% 47,899
2.1% 7,000
-74.1% (80,GW
0.0% n .. .
-16.6% (73,000)
262.6% 344,000
42.0% 4,200
-100.0% (80,oOO)
2 268,200
255.5% 1 12,400
-16.7% (1.000)
222.8% 111,400
15.2% 354,499
TOTAL OPERATING $143,123,721 $146,291,218 $1 47,223,959 0.6% $ 932,741
Exhibit 4
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
2002-03 2002-03
2000-01 2001 -02 ESTIMATED ADOPTED
DEPARTMENT ACTU ALS ACTUALS EXPENDITURES (1) BUDGET IGENERAL FUND I
POLICY AND LEADERSHIP GROUP
CITY COUNCIL 233,983
CITY MANAGER 969.130
COMMUNICATIONS 21 8.61 3
CITY CLERK 98,558
CITY ATTORNEY 775,468
CITY TREASURER 1 14,675
TOTAL POLICY/LEADERSHIP GROUP 2,410,427
ADMINISTRATIVE SERVICES
ADMINISTRATION 499,413
FINANCE 1,889,971
HUMAN RESOURCES 1,081,139
RECORDS MANAGEMENT (2) 1,261,230
272,275
1,080,772
246,248
280,226
939,657
114,341
2.933.519
386,758
2,157,099
1,461,503
0
TOTAL ADMINISTRATIVE SERVICES 4,731,753 4,005,360
PUBLIC SAFETY
POLICE 13,841,267 14,957,749
FIRE 9,556,920 10,293,823
TOTAL PUBLIC SAFETY 23,398,187 25,251,572
COMMUNITY DEVELOPMENT
COMMUNITY DEVEL ADMlN 466.232 329,304
GEOGRAPHIC INFORMATION 262,476 273,199
ECONOMIC DEVELOPMENT 133,875 226,252
PLANNING 2,246,992 2,813,766
BUILDING 1,738,257 1,766,613
TOTAL COMMUNITY DEVELOPMENT 4,847,832 5,409,134
COMMUNITY SERVICES
LIBRARY 6,266,112 6,938,523
CULTURAL ARTS PROGRAM 645,654 554,206
RECREATION 3,409,515 3,994.1 99
SENIOR PROGRAMS 366,497 401,419
TOTAL COMMUNITY SERVICES 10,687,778 1 1,888,347
279,220 298,551
1,137,204 1,129,967
629,901 864,593
309,200 303,076
921,277 952.336
148,916 165,638
3,425,718 3,714,161
510,655 71 4,140
2,495,000 2,706,868
1,552,340 1,963,843
0 0
4,557,995 5,384,851
16,205,716 16,971,861
1 1,488,128 1 1,450,059
27,693,844 28,421,920
480,810 408,220
244,102 305,658
223,692 250.132
2,819,460 3,267,587
1,672,614 1,873,526
5,368,088 6,177,713
7,955,809 8,059,193
628,097 71 0,195
3,919,787 4,558,457
718,115 736,425
13,221,808 14,064,270
%INCR (DEC)
02-03 BUD
2003-04
BUDGET 03-04 BUD I
305,953
1,162,763
780.71 1
309,137
971,382
2.5%
2.9%
-9.7%
2.0%
2.0%
2.0%
-0.4X
~
-0.5%
2,601,498 -3.9%
2,028.938 3.3%
0.0%
5,341,084 -0.8%
17,646,410 4.0%
1.3%
2.9%
636,600
31 1,772
183,735
3,230,939
1,809,656
32.4%
2.0%
-26.5%
-1.1%
-3.4%
-0.1 %
8,162,232 1.3%
71 1,739 0.2%
4,681,588 2.7%
-5.3%
1.3%
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
2002-03 2002-03
2000-01 2001 -02 ESTIMATED ADOPTED
DEPARTMENT ACTUALS ACTUALS EXPENDITURES (1) BUDGET
PUBLIC WORKS
Exhibit 4 (cont.)
PUBLIC WORKS ADMIN 488,411
ENGINEERING 4,328,569
FACILITIES MAINTENANCE 2,068,387
PARK MAINTENANCE 2,562.460
STREET MAINTENANCE 2,041,517
TRAFFIC SIGNAL MAINT 743.564
492,064
4,312,623
2,145,904
2,692,390
2,272,808
584,348
TOTAL PUBLIC WORKS 12,232.908
NON-DEPARTMENTAL
COMMUNITY PROMOTION (CCVB) 370,279
BEACH PARKING 0
COMMUNITY CONTRIBUTIONS 0
HIRING CENTER 82,583
HOSP GROVE PAYMENT 800,000
PROPERTY TAX ADMIN FEE 255,619
DUES & SUBSCRIPTIONS 40,993
MlSC /TRANSFERS OUT 106,400
ASSESSMENT SERVICES 15,073
INFRASTRUCTURE REPLACE TRANS 3,000,000
GOLF COURSE TRANSFER
TRANSFER TO CIP
TRANS TO STORM WATER PGM
MANAGEMENT INCENTIVE PAY
LEGAL SERVICES
OTHER
TOTAL NON-DEPARTMENTAL
SUBTOTAL GENERAL FUND
CONTINGENCIES
TOTAL GENERAL FUND
12,500,137
308,798
0
65,235
83,400
800,000
285,775
46,386
1,302
13,923
3,000,000
600,000 0
4,300,000 1,500.000
0 1,873,190
0 0
0 0
61.529 17.421
739.866 807,075
5,613,693 5,266,844
2,468,486 2,692,076
231 5,181 3,205,497
2,406,625 2,504,087
652,811 685,355
14,696,662 15,160,934
332,160
0
1 1,235
83,400
800,000
315,000
50,000
0
13,800
3,500,000
600,000
0
1,076,419
0
0
0
363,000
36,000
11,235
85,849
800,000
325,000
62,400
0
58,400
3,500,000
600,000
0
1,076,419
500,000
0
0
9,632,476 7,995,430 6,782,014 7,418,303
67,941,361 69,983,499 75,746,129 80,342,152
0 0 0 2,500,000
67,941,361 69,983,499 75,746.129 82,842,152
2003-04
BUDGET
800,032
5,210,161
2,803,465
3,532,676
2.61 1,249
776.198
15,733,781
370,260
36,ooa
a
8oo,ooa
85,849
332,000
72,150
563,000
35,400
3,605,000
a
0
1,263,800
575,000
250,000
0
7,988,459
52.429.747
2,300,000
34,729,747
%INCR (DEC)
02-03 BUD
TO
03-04 BUD
-0.9%
-1.1%
4.1%
10.2%
4.3%
13.3%
3.8%
2.0%
0.0%
-100.0%
0.0%
0.0%
2.2%
15.6%
0.0%
-39.4%
3.0%
-100.0%
0.0%
17.4%
15.0%
100.0%
0.0%
7.7%
2.6%
-8.0%
2.3%
Exhibit 4 (cont.)
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
%INCR (DEC)
02-03 BUD
TO
03-04 BUD
15.6%
521.4%
-47.4%
100.0%
4.0%
0.5%
-50.0%
-29.1 %
0.0%
-4.0%
-12.6%
2.2%
2.5%
14.1%
0.0%
0.0%
-1 5.0%
-0.8%
0.0%
-50.0%
-32.5%
3.4%
-1.1%
0.5%
18.6%
23.9%
0.0%
2002-03 2002-03
2000-01 2001 -02 ESTIMATED ADOPTED
DEPARTMENT ACTUALS ACTUALS EXPENDITURES (1) BUDGET
SPECIAL REVENUE FUNDS
STORM WATER PROTECTION PGM 0
POLICE ASSET FORFEITURE 36,497
COPS FUND 146,268
POLICE GRANTS 79,929
HOUSING SECTION 8 3,185,288
HOUSING TRUST 176,351
LIBRARY ENDOWMENT FUND 8,873
LIBRARY GIFWBEQUESTS 21,024
LIBRARY STATE GRANTS 299,837
TREE MAINTENANCE 547,653
MEDIAN MAINTENANCE 529,532
STREET LIGHTING 843,737
BUENA VISTA CRK CHNL MNT 7,176
ARTS SPECIAL EVENTS 19,199
SENIOR NUTRITION (3) 21 0.762
SENIOR DONATIONS 87,860
CDBG ENTITLEMENTFIEHAB 524,192
COMMUNITY ACTIVITY GRANTS 49,351
CULTURAL ARTS PROGRAM 22,808
SISTER CITY DONATIONS 2.860
ARTS GEN/GALLERY DONATIONS 38,537
TOTAL SPECIAL REVENUE FUNDS 6,837,734
767,391
5,724
286,734
180,975
3,867,573
185,874
9,875
30,537
0
642,800
533,901
882,780
25,809
19,087
207,044
35,557
477,163
57,714
34,144
15
58,120
7,541,426
1,218,729
101,122
154,677
148,323
5,348,824
325,413
6,000
80,283
0
680,000
581,023
1,050,000
86,090
39,035
3,773
0
1,712,551
95,000
20,000
0
28,832
11,679,675
1,076,419
65,000
347,54 1
0
5,335,989
255,163
12,000
95,307
0
727,159
577,780
1,139,441
1,590
31,632
0
0
769,892
60,500
20,000
4,000
20,000
10,539,413
ENTERPRISE FUNDS
WATER OPERATIONS 17,874,678 18,892,192 19,243.574 21,113,828
RECYCLED WATER OPERATIONS 1.31 5,999 1,476,399 1,658,624 1,904,416
SANITATION OPERATIONS 6,018,104 6,498,962 6,559,430 6,768,912
SOLID WASTE MANAGEMENT 260,656 215,720 202,856 223,410
GOLF COURSE 144,330 168,967 181,154 300,000
TOTAL ENTERPRISE FUNDS 25,613,767 27,252,240 27,845,638 30,310,566
]INTERNAL SERVICE FUNDS I
WORKERS COMP SELF INSURANCE 952,286 1,093,092 1,606,818 1,083,799
RISK MANAGEMENT 792,113 1,373.974 1,614,910 1,487,459
HEALTH INSURANCE 2,343,084 2,464,031
RECORDS MANAGEMENT (2) 0 969,761
VEHICLE MAINTENANCE 1,566,803 1,640,651
VEHICLE REPLACEMENT 1,079,331 1,179,122
INFORMATION TECHNOLOGY 2,937.523 3,631,939
TOTAL INTERNAL SERVICE FUNDS 9,671,140 12,352,570
2,937,452 3,083,952
952,410 1,182,687
1,774,674 1,823,291
1,957,151 1,667,000
3,444,400 4,495,634
14,287,815 14,823,822
2003-04
BUDGET
1,244,750
403,900
30,000
256.340
6,000
67,62a
a
182,915
5,549,702
. 697,979
504,841
1,165,034
1,629
36,103
0
0
654,408
60,000
20.000
2.000
13,500
10,896,721
20,874,869
1,913,117
8,029,909
276,761
300,000
31,394,656
1,327,605
1,505,019
1,521,636
1,126,466
1,889,420
873,000
5,461,325
13,704,471
3.6%
22.5%
1.2%
-50.7%
-4.8%
3.6%
-47.6%
21.5%
-7.6%
Exhibit 4
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
DEPARTMENT ACTUALS ACTUALS EXPENDITURES (1) BUDGET
REDEVELOPMENT
2002-03 2002-03
2000-01 2001 -02 ESTIMATED ADOPTED I 2003-04 I
BUDGET
(cont. )
%INCR (DEC)
02-03 BUD
TO
03-04 BUD
VILLAGE OPERATIONS / DEBT SVC
VILLAGE LOW/MOD INCOME HSNG
SCCRA OPERATIONS / DEBT SVC
SCCRA LOW/MOD INCOME HSNG
TOTAL REDEVELOPMENT
1,563,217 4.1%
98,948 10.3%
183,528 88.2%
66.4%
1,883,810 10.0%
2,221,511 2,102,507 1,627,798 1,501,860
74,014 45,170 202,722 89,692
33,807 63,072 170,588 97,512
0 19,345 32,370 22,906
2,329,332 2,230,094 2,033,478 1,711,970
TOTAL OPERATING FUNDS 112,393,334 119,359,829 131,592,735 140,227,923 142,609,405 1.7%
(1) Estimated expenditures may exceed Adopted budget since they include prior year budget cariyfowards.
(2) Records Management was converted to an Internal Service fund in 2001 -02.
(3) Senior Nutrition Grant was moved to the General fund in 2002-03.
Exhibit 5
ADJUSTED OVER
FINAL PRELIMINARY (UNDER)
BUDGET BUDGET 2002-03
MAJOR SERVICE AREA 2002-03 2003-04 ALLOCATED
)POLICY AND LEADERSHIP GROUP I
CITY COUNCIL
CITY MANAGER
COMMUNICATIONS
CITY TREASURER
CITY CLERK
CITY ATTORNEY
)ADMINISTRATIVE SERVICES 3
ADMINISTRATION
RECORDSMANAGEMENT
INFORMATION TECHNOLOGY
FINANCE
RISK MANAGEMENT
HUMAN RESOURCES & WORKERS COMP
1 .oo 1 .oo 0.00
6.00 6.00 0.00
2.75 2.75 0.00
0.75 0.75 0.00
0.00 0.00 0.00
7.00 7.00 0.00
2.00 2.00 0.00
8.00 8.00 0.00
16.00 16.00 0.00
28.00 28.00 0.00
2.00 2.00 0.00
10.00 10.00 0.00
)PUBLIC SAFETY
POLICE 150.00 148.00 (2.00)
FIRE 79.75 79.75 0.00
(COMMUNITY DEVELOPMENT I
COMMUNITY DEVELOPMENT ADMINISTRATION 3.00 3.00 0.00
BUILDING INSPECTION
ECONOMIC DEVELOPMENT
GEOGRAPHIC INFORMATION
PLANNING
HOUSING AND REDEVELOPMENT
13.00 13.00 0.00
1 .oo 1 .oo 0.00
2.00 2.00 0.00
25.00 25.00 0.00
10.00 10.00 0.00
LCOMMUNITY SERVICES 1
LIBRARY 48.00 48.00 0.00
CULTURAL ARTS
RECREATION
SENIOR PROGRAM
4.75 5.00 0.25
31 .OO 31 .OO 0.00
2.00 2.00 0.00
)PUBLIC WORKS I
ADMINISTRATION 6.00 6.00 0.00
ENGINEERING SERVICES
GENERAL SERVICES
MAINTENANCE & OPERATIONS
FULL AND 314 TIME LABOR FORCE
57.00 57.00 0.00
57.75 58.75 1 .00
73.00 73.00 0.00
646.75 646.00 (0.75)
Exhibit 5 (cont.) PERSONNEL ALLOCATIONS FOR 2002-03 AND 2003-04 (Continued)
SUMMARY OF REQUESTED LABOR FORCE BY CATEGORY
2002/03 2003/04 Difference
Full Time Personnel I 314 Time Personnel in Full Time Equivalents (0.75) O.OO I 640.00 640.00
6.75 6.00
Hourly Full Time Equivalent Personnel 145.92 147.77 1.85
TOTAL LABOR FORCE 792.67 793.77 1.10
LIMITED TERM EMPLOYEES
2002/03 2003/04 Differencc
Management Interns
Building Inspector Intern
Division Chief
GIS lntem
Planning Technician Intern
2.00 2.00 0.00
2.00 2.00 0.00
1 .oo 1 .oo 0.00
0.50 0.50 0.00
1 .oo 1 .oo 0.00
Planning Intern - front counter 0.50 0.50 0.00
TOTAL LIMITED TERM EMPLOYEES 7.00 7.00 0.00
A-I 9
Exhibit 6
RECOMMENDED CHANGES TO THE CITY FEE SCHEDULE -June 2003
(Master Fee Schedules on file with City Clerk)
GENERAL CITY FEES
Clerk
City Council Agenda Subscription (per year)
Certification Charge (per document)
Water District
Cost of Delivery Charge (per month) Fire Protection Meters
Library
Library Fines (per day per item)
Library Fines - Juvenile (per day per item)
Library Book Reserve (per item)
Interlibrary Loan (per item)
Lost Library Card
Lost /damaged beyond repair book/audio item
LosVDamaged Library materials
DEVELOPMENT-RELATED SERVICE CITY FEES
Street Light Energizing Fees (3)
Watts Lumens
70 5,800
100 9,500
150 16,000
200 22,000
250 30,000
400 new
Current
$50.00
$10.00
$20.80
$0.10
$0.05
50 FEE
$1 .oo
$1 .oo
$ %
PrOQOSed Channe Channe
$65.00 $15.00 30%
$12.00 $2.00 20%
Delete (’)
$0.25 $0.15 150%
$0.10 $0.05 100%
$2.00 $1.00 100%
$2.00 $1.00 100%
50 FINE (’)
List price
various
List price + $40 if out of print
variable up to list price
$60.00 $109.00 $49.00 82%
$78.00 $135.00 $57.00 73%
$101 .OO $174.00 $73.00 72%
$125.00 $213.00 $88.00 70%
$165.00 $264.00 $99.00 60%
$385.00 $385.00
(‘) Proposed to be deleted as this service is paid for with a different fee.
(*) Currently a fee is paid to reserve a book. Proposed fee change is to convert the fee to a fine to be charged
if the reserved book is not picked up by the patron.
(3) Above fees are for 18 months and include a $30 cost per light connection fee. Increases based on increased
energy costs.
Exhibit 6 (cont.)
RECOMMENDED CHANGES TO THE CITY FEE SCHEDULE - June 2003
Aauatics Fees
Per Admission - Adult - Res
Per Admission - Adult - Non-Res
Passes-One Mo. Individual - R
Passes-One Mo. Individual - NR
Passes-One Mo. Family - R
Passes-One Mo. Family - NR
Passes-Four Mo. Individual - R
Passes-Four Mo. Individual - NR
Passes-Four Mo. Family - R
Passes-Four Mo. Family - NR
Beginner - Learn to Swim - R
Beginner - Learn to Swim - NR
AdulVTeen - Learn To Swim - R
Adultrreen - Learn To Swim - NR
Parenthnfant thru PSA Ill - R
Parenthfant thru PSA Ill - NR
Adapted Aquatics - R
Adapted Aquatics - NR
Ind. lnstr - Basic - R per hour
Ind. lnstr - Basic - NR
Ind. lnstr - Advanced - R per hour
Ind. lnstr - Adv. - NR per hour
Diving/Synchro Swim - R
Diving/ Synchro Swim - NR
Masters Daily Fee - R
Masters Daily Fee - NR
Masters Workouts R - Mo. Fee
Masters Workouts - NR - Mo. Fee
Commercial/Corp./lane/hour
Community/Non-Prof it/lane/hr.
UA - C.U.S.D. /lane/hour
UA - N.C.A. - /lane/hour
Staff Costs -Per Hour/guard
Electricity -per hour
Gas -per hour
Current
Fee ($)
2.00
3.00
20.00
30.00
30.00
40.00
42.00
52.00
50.00
60.00
25.00
35.00
27.00
37.00
27.00
37.00
25.00
35.00
25.00
35.00
27.00
37.00
27.00
37.00
3.50
4.50
35.00
45.00
8.80
3.50
2.40
2.40
16.00
3.00
7.00
Recommended
Fee ($)
3.00
4.00
35.00
50.00
45.00
70.00
60.00
90.00
90.00
11 0.00
40.00
60.00
40.00
60.00
40.00
60.00
40.00
60.00
40.00
60.00
40.00
60.00
40.00
60.00
4.00
6.00
40.00
60.00
10.00
5.00
5.00
5.00
20.00
Delete
Delete
$
Change
1 .oo
1-00
15.00
20.00
15.00
30.00
18.00
38.00
40.00
50.00
15.00
25.00
13.00
23.00
13.00
23.00
15.00
25.00
15.00
25.00
13.00
23.00
13.00
23.00
0.50
1.50
5.00
15.00
1.20
1.50
2.60
2.60
4.00
%
Change
50%
33%
75%
67%
50%
75%
43%
73%
80%
83%
60%
71 yo
48%
62%
48%
62%
60%
60%
71 %
48%
62%
48%
62%
14%
33%
33%
14%
43%
108%
108%
25%
71 %
14%
I' L. .
Exhibit 6 (cont.)
RECOMMENDED CHANGES TO THE CITY FEE SCHEDULE -June 2003
Senior Center Facility Fees
Staffing fee
Staffing fee
Cancellation Processing fee
Cancellation Processing fee
Cleaning deposit
Cleaning deposit
Auditorium
Auditorium
Dining room
Dining room
Kitchen Use (Full Service Prep)
Kitchen Use (Full Service Prep)
Carrillo Ranch Facilitv Fees
Daily Rental Fees:
Cabana & Pool Area
Patio Area
current
proposed
current
proposed
current
proposed
current
proposed
current
proposed
current
proposed
New
New
$ 13 perhour
$ 15 per hour
$ 10
$ 25
$ 150
$200
A
N/C
N/C
N/C
N/C
N/C
N/C
A
N/C
N/C
B
N/C
N/C
N/C
N/C
N/C
N/C
B
500
200
Categories
C D E F G
30 40 50 65 80
30 40 55 70 85
30 40 50 65 80
30 40 55 70 85
35
40
15 20 25 30
15 20 30 35
Categories
C D E F
600 700 850 1000
300 400 500 600
Notes: Rentals of five hours or less will be charged half the daily rental fee, with the exception of Sundays.
Set up and cleam up time is included as rental time.
If applicant exceeds departure time, there will be a $75 charge for each additional hour.
Librarv Facility fees
Room Attendant, AV Tech current
Room Attendant, AV Tech proposed
Cancellation Processing fee New
Gowland Meeting Room (per 4 hrs)
Gowland Meeting Room (per 1 hr)
current
proposed
Schulman Auditorium (per 4 hrs)
Schulman Auditorium (per 1 hr)
current
proposed
Conference Room (per 4 hrs) current
Community Room (Cole Library)per hr proposed
$ 17 per hour
$ 20 perhour
$ 25
A B
N/C N/C
N/C N/C
N/C N/C
N/C N/C
N/C N/C
N/C N/C
Categories
C D
N/C 20
N/C 20
N/C 25
N/C 25
N/C 15
N/C 20
E F
30 40
30 40
75 100
50 55
25 35
30 40
Exhibit 6 (cont.)
SENIOR CENTER
CLASSIFICATION OF APPLICANTS AND FEES
Each application will be reviewed by the Senior Center Coordinator or Designee
and classified into a group depending on the type of organization and the
intended use. Senior Center activities have first priority for the use of the facility.
The classifications are listed in order of priority with classification “A first,
classification “B” second, etc. The City attempts to accommodate all groups;
however, there is a limited number of facilities. Unfortunately, the demand
exceeds the supply. For that reason, a priority system for use had to be
established.
A.
B.
C.
D.
E.
F.
G.
Carlsbad Senior Center activities.
Parks and Recreation activities; City co-sponsored activities; other City
departments; Carlsbad Unified School District administration authorized
activities.
EXAMPLES: CUSD Board of Trustees meetings, Friends of the Library,
Carlsbad Commission meetings
Carlsbad resident (70% membership Carlsbad residents) non-profit
organizations (non-paid management): Carlsbad Homeowners Associations;
Carlsbad civic and social organizations; any Carlsbad organization
sponsoring a public forum or candidate’s night.
EXAMPLES: Carlsbad Rotary, La Costa Youth Organization, Carlsbad little
League, Carlsbad Boy Scouts
Carlsbad resident (70% membership Carlsbad residents) non-profit
organizations (paid management): civic and social organizations.
EXAMPLES: Carlsbad Boy’s & Girl’s Club
Locally organized groups whose normal place of meeting is located in the City
of Carlsbad; resident religious; resident political candidate use for fund
raisers; non-resident, not-for-profit educational; civic and social organizations;
resident private parties.
EXAMPLES: North County A.A., Y.M.C.A., resident wedding reception
Resident commercial, business, and profit-making organizations: non-
resident private party activities.
EXAMPLES: Carlsbad Inn, non-resident weddings or receptions
Non-resident commercial, business, political, profit making, and religious
organizations.
EXAMPLES: Trade shows, company training, meetings, and seminars
,. .
i’
Exhibit 6 (cont.)
CLASSIFICATION OF APPLICANTS AND FEES
Each application will be reviewed by the Recreation Supervisor and classified into a group depending on the type of
organization and the intended use. The Parks and Recreation Division’s activities have first priority for the use of the
facilities. The classifications are listed in order or priority with classification “A” first, classification “B” second, etc.
The City attempts to accommodate all groups; however, there is a limited number of facilities. Unfortunately, the
demand exceeds the supply. For that reason, a priority system for use had to be established.
A. Parks and Recreation activities; Co-sponsored activities; other City departments
Examples: Friends of the Library, Carlsbad Book Fair
B.
a public forum or candidates night; public education
Youth Baseball, Boy Scouts, Carlsbad Homeowner’s Associations, Carlsbad Unified School District
Carlsbad resident not-for-profit, civic, social organizations (non-paid management); any organization sponsoring
Carlsbad Rotary, La Costa Youth Organization, Carlsbad Softball Association, Carlsbad Examples:
C. Carlsbad resident not-for-profit, civic, social organizations (paid management); private educational institutions
Examples: Boy’s and Girl’s Club, Property Management Associations, Carlsbad Girl’s Club
D. Non-resident not-for-profit, educational, civic and social organizations; resident private parties; resident
religious; resident political candidate use for fund raisers; and locally organized groups whose normal place of meeting is
located in the City of Carlsbad.
Examples: North County A.A., Y.M.C.A., resident religious and political groups, Mira Costa
E. Resident commercial, business, profit making organization, non-resident private party activities
Examples: Carlsbad Inn, non-resident parties, weddings or receptions
F. Non-resident commercial, business, political, profit making and religious organizations
Examples: Trade shows, company training, meetings, seminars
IN ORDER TO QUALIFY AS CLASSIFICATION “B” NON-PROFIT USER, THE ORGANIZATION MUST MEET
ALL OF THE FOLLOWING CFUTERIA:
1. The organization must be registered as a not-for-profit corporation with the State of California, or, if not
registered with the State, must be a Carlsbad Chapter and have a constitution or by-laws which clearly state that the
objectives of the organization are of a non-profit, non-commercial nature.
2. The organization must be comprised of volunteers, and 70% of which its membership and participants must be
Carlsbad residents. Verification of residency may be required. Official rosters, approved by the league office, must be
submitted with applications.
3. The organization must submit the following:
a. If incorporated, submit State incorporation papers and by-laws; if not incorporated, submit constitution and
by-laws.
b. Financial verification of organization’s exemption from income tax. (Department of the Treasury form 990
may be used.) An up-dated copy will be required by October 1st of each year.
c. A signed statement verifying item “2” above.
-1 CI Mayor
citycod
cnty-m WAttorSro
WQWi
From: “Cook” <zcooks4@adelphia.net>
To :
Date: 6/10/03 3:22PM
Subject: Save Open Space in Carlsbad
<mstro@ci.carlsbad.ca.us>
Dear Mayor Lewis, &
While I am a realist in these tuff budgetary times. I urge you and the Council Members to be cautious in
allowing any current Open Space land to be rezoned for commercial usage. I do believe there is a need to
save such open spaces, like Calavera. If any of the budget can be used for trail development, that would
be good. But please do not allow developers to use this pristine place for another housing or commercial
development.
Sincerely yours,
Diana &Jim Cook
3002 Wintergreen Dr.
Carlsbad, CA 92008
.I
From: <TCondon@isisph.com>
To : cmstro@ci.carlsbad.ca.us>
Date: 6/10/03 8:37AM
Subject: capital improvement budget
Dear Mayor and Council,
I attended the Capital Improvement Budget workshop on 6/3/03 and I have
a couple of observations that I would like to share with you all.
1. I think Carlsbad is a wonderful place to live and I think you are
doing a good job at managing the city given all the complexities.
2. I think you have a great opportunity to work with Alison Rolfe and San
Diego Baykeeper to implement an Open Space Reserve system in Carlsbad. It
would be a pity to see the Carlsbad Oaks North Industrial park be built
adjacent to the Dawson-Los Monos Reserve.
3.The majority of public comments were in favor of allocating money for an
Open Space reserve as deemed by Prop C last November.
3. The people want another swim complex! I can't believe Lisa Rodman has
been asking you for 7 years!
4. I hope you don't take as long to implement an Open Space Reserve
system in Carlsbad as you have for building a new swim complex because
there won't be any land left to save.
Sincerely,
Thomas P. Condon
Assistant Director - Antisense Drug Discovery
lsis Pharmaceuticals
2292 Faraday Ave.
Carlsbad, CA 92008
(760) 603-2414
ps Do you ever respond to your constiuents e-mails?
From: Fran Agliata <frantic@adelphia.net>
To: <mstro@ci.carlsbad .ca. us>
Date: 6/9/03 11 :50AM
Subject: Open Space and Trails
Dear Council Members:
I cannot express to you how important it is to preserve the open space that
is left in Carlsbad for hiking, biking and equestrian trails in the
Calaveras and Sunny Creek area, especially for Equestrian use. The
Equestrians have been pushed out of every area in Carlsbad and the only
space left for them is in the Calaveras and Sunny Creek areas before this
area is developed. There are two horse facilities within an 1/8 of a mile of
each other. These facilities are important to the Equestrian owners in
Carlsbad. There are numerous Carlsbad residents and their children that take
lessons at these boarding facilities. The children especially need these
great equestrian teachers in their lives. The horses teach the children not
only responsibility for taking care of an animal but also teaches them self
confidence. I myself in the past five weeks have taken an 8 year old boy
from being terrified to walk on horse back, to trotting on a trail all by
himself ... l cannot tell you what this has done for this child. He is now
looking forward to galloping a horse on his own. We need to preserve what's
left of Carlsbad's heritage. I urge to to allocate some of the $88m of
reserves to preserving Carlsbad's Open Space ...y ou have done numerous
surveys and the citizens of Carlsbad have stated that one of their number
one priorities is to conserve open space ...p lease listen to the citizens of
Carlsbad ... thank you.
Fran Agliata
4745 Gateshead Road
Carlsbad. CA 92008
From: Newfield <newfield3@cox.net>
To: <mstro@ci.carlsbad.ca.us>
Date: 6/9/03 10:20AM
Subject: Open space preservation
As you prepare to decide how taxpayer money is spent, please recognize the
need for open space acquisition. Your decisions now will affect the future
of our beautiful area. Don't make the mistakes we have seen in Los Angeles
and Orange County. As San Diego County residents, we point to them and
scoff. Yet, we are heading in the same direction of overbuilding and
destroying native habitats. What hypocrisy! The character of our North San
Diego County coastal area needs to keep some resemblance to the place we
have loved over the years. Please put some money towards a lasting legacy of
preservation of the natural beauty of our area.
Susan Newfield
Ocean Hills
Page I j
From: Lori Homstad <Ihomstad@yahoo.com>
To: <mstro@ci.carlsbad.ca.us>
Date: 6/9/03 1 1 :09AM
Subject: Create a Carefully Planned Carlsbad!
June 9,2003
Attn: Mayor Lewis and Council Members Ramona Finilla, Matt Hall, Ann Kulchin, and Packard:
Create a Beautiful and Carefully Planned Carlsbad! At the recent city Council meeting, thank you for
listening to the many reasons to
save our precious open space. And thank you for responding on how much you would love to
accommodate all requests. This is the time to take more of a Careful Commitment now!
Saving Lake Calavera is not enough. The nearby water falls should be acquired and restored. Money
needs to be allocated for trails from Calavera Hills to San Marcos. Give a raise to Mr. D. Rideout, he is a
great volunteer and has some tremendous ideas!
Other North County cities have drafted their habitat conservation plans. Why is Carlsbad at the bottom of
the list? In terms of the percentage of remaining sensitive habitat that you propose to conserve- only 62%
is not good enough! This is the bare minimum of conservation required by law. Because it is just the
minimum there is a high risk for continued loss of sensitive species and there is no guarantee that any of it
will be open
to the public. Do you think that this habitat conservation can both preserve species and meet the public
recreational needs? I think it is the bare minimum. You are a better council than was proved in the
meeting last night. We need to see that enough land is conserved to do both.
When you adopt your budget for next year, please allocate more money for open space acquisition! The
only money for trails is in Larwin Park. We have lost miles of trails for hikers, bikers and equestrian use as
hundreds of acres of land have changed from open space to houses and industrial parks. We need more
land conserved in order to provide better buffers for the sensitive native habitat,
while still accommodating these recreational uses. PLEASE commit to open space and trails- thats why I
voted
"Yes" on Measure C. I want you to save some of these areas now- while there is still
something left to save, now before land prices go even higher. We are committed to help
raise funds for acquisition- but our chance of success is much greater if YOU will commit matching funds.
Respectfully,
Lori D. Homstad
3608 Cheshire Ave
Carlsbad, CA 92008
Lori Homstad
New Home: 714-389-9307
Local Cell: 760-458-9252. Staying in Carlsbad on Weekdays till June 14th.
From: "RICHARD@SUPERGO.COM" <RICHARD@SUPERGO.COM>
To : cmstro@ci.carlsbad.ca.us>
Date: 6/9/03 3:16PM
Subject: Save our Space
Dear Sir
Please make a greater effort to save our land for hiking and biking. This space is precious to all who live in
So. Cal.
We need space for all the animals including us.
Regards
Richard Albrow
GM Supergo OS
www.supergo.com
760-726-5559
From: Eric Langberg <langberg@pacbell.net>
To: <mstro@ci.carlsbad.ca.us>
Date: 6/9/03 4:02PM
Subject: Help Save Open Space in Carlsbad
To :
Mayor Lewis:
Council members Finilla, Hall Kulchin, and Packard:
Please allocate some of your $88 million dollars in reserves to trails and open spaces in Carlsbad. As you
know hundreds of acres of land changed from open spaces to homes and industrial parks.
We have a responsibility to our youth and community to protect the wild life and native plants as well as tp
provide recreational use for everyone. More land needs to be conserved in order to provide better buffers
for the sensitive habitats of our area.
Thank you for reading this request to provide a better environment for our children, community and
wildlife.
Sincerely, Maureen and Eric Langberg
2210 Nob Hill Dr,
Carlsabd. CA 92008
From: Carla cfreesiacjm@netzero.net>
To : cCouncil@ci.carlsbad.ca.us>
Date: Subject: Strategic Goals
Tue, Jun 10,2003 10:05 AM
Dear City Council,
Carlsbad. The 2003-2004 goals you have will have been in part met by the
purchase of more open space for Carlsbad, specifically in the Calivera
Hills area. The voters want this. The spring wildflowers there have never
been more abundant and beautiful. Please do not allow them to ruin this
pristine unique area of Mallow, Sage, Currants, Lilies, Irises, California
Poppies, etc. will development that is stressing our coast.
parks open space/trails, water and environmental management as well as
financial health of the city go along with the open space concept. Beach
erosion will also be averted with open space as the rain water washes dirt
into the rivers that lead to the beaches to create more sand. Open space
requires no need for precious city water. No costs except for initial cost
of the land purchase is required. No gardeners are needed, and no utilities
are required. There are plenty of volunteers who would love to maintain the
areas. The environment would benefit. The city's financial health would
be ensured as more people would pay higher prices for homes in areas with
some open space in close proximity.
Finally, you can assure your re-election, as the voters main desire is for
open space.
Carlsbad High Schools athletic department can have an area to run up hills
to condition their athletes.
Please consider this letter as a vote to maintain some open space for
The city council's goals for Carlsbad of a balanced community development,
Thank you for your attention,
Carla Mellander
3825 Highland Drive
Carlsbad, CA 92008
Mining and commercial development
have taken a toll on the ”El Salto”
waterfall in Carlsbad. NeIYin cepeda
Unipn-Tribune
Preservation
of waterfall
0 0 .I is a pnonty
By Lisa Marinelii
STAFF WRITER
CARISBAD - For nearly 150 years, members of Carlsbad’s prominent Mar- ron family found solitude at their private
down boulders along Buena Vista Creek
That changed when they sold some of their land to a mining company in the 1970s. Not only was access to El Salto lost, but the falls itself shrank by about 15 feet due to mining, said Shelley Hayes Caron, a Marron family descendant, About 40 hikers had the rare opportu-
nity yesterday to view the falls as part of a Sierra Club tour along the creek to pro- mote land conservation.
4GfOOt gUrghg WaterfaIl that flowed
- “It’s clear to everyone what we are
looking ?at here is what was once a beauti- ful asset to the community that has been neglected over the years,” Said Eric Bowl- by, a canyons and creeks expert for .% Diego’s Sierra Club. “But ht d~dt
mean it can’t be restored.” preservation of the creek, its valley and waterfan has been a priority of many area residents as developers begin construc- tion of a shopping center dong the Oceanside-Carlsbad border on the banks of the creek. At one point, the plan for the QUW Creek shopping center would have re
aligned Buena Vista Creek and destroyed El Salto falls. But the developers, lhcm lin Commercial, have agreed tdeave it
C groups want Carlsbad to buy open land
alone, spokeswdman Constance Clover said.
The 59acre shopping center, just south of state Route 78, will include a WdMart, Kohl’s department store, Albertson’s and service station. McMillin expects WabMart to be completed within
a year. Grading of the site is under way. After walking along the creek, lquning about the plant life and pointing out rare birds soaring over- head, hikers headed down ‘quarry roads toward’ El Salto. They worked their way on the boulders to get a glimpse of the falls, which is surrounded by willows, sycamores and Mexican fan palms.
several years,” said Kasey CiciareUi, 46, wha was accompanied by her husband and 4-year-old son. “I’m interested in preserving what remains as part of our natural history.” Many were disappointed to see that the newhr built
”I’ve been waiting to get down to the are
matician from La The falls rests on the Carlsbad-Oceanside border.- Hanson Aggregates Pacific Southwest hc. owns the Carlsbad portion of the falls but McMiElin has the option to purchase it, Caron said. Caron and members of land conservancy organiza-’ tions want the city of Carlsbid to purchase land along
the Buena Vista Creek valley, including the falls, to protect it as open space. “It would+be so wonderful to have it be part of a preserve 90 people could enjoy it,” said Caron, 54, who lives at the family adobe home built by her great-great-grandf&ther, Siestre Marron. The adobe has been in possession of the Marron family for more &an 150 years.
Lisa Marinellk (760) 476-8232; lisa.marineili@uniontrib.com
c
Advanced cost
Advanced funding source
Remarks of Larry David before the
June 10,2003 Carlsbad City Council Meeting
Subiect: APenda Bill #17,199
$16.0 million3 $8.5-$11.6 million4
Accumulated funds.s Accumulated funds.
1 am Larry David. I reside at 7042 El Fuerte St., Carlsbad. As a point of information, I
Number of City Council meetings
required to implement project
have in depth discussion of the
project
2
None Workshops necessary for Council to
respectfully request that a transcript of these remarks be included with the minutes of this meeting. I
So far - 8 and counting
1
will give the clerk a copy upon the conclusion of my remarks. Thank you.
source of yearly operatini funds
Project due diligence
Mayor, Council Members, by my count, this is the eighth presentation I have given to this
After the fact Seemingly never ends
council on the subject of the aquatic complex (which I will refer to from here on out as the “Complex”,)
a complex you promised to build without delay if the voters approved Proposition C. A project that the
Parks and Recreation Commission unanimously recommended you build in a single phase NOW!
In the past, I have often referred to the Farmers Insurance Group property transaction, purchased
by the City to provide the future location of the City Hall, as being the benchmark for moving the
Complex through the approval process. At the time I did not realize how similar these two projects
were, if not in implementation, at least in their initial factual comparisons.
Description City Hall Complex 1 CIP Date I 2007-201 1 I 2007-20132
I Near term net Operating Cost I Approx. $i?5jJ,000/year6 - I Approx. $400,00O/year’
A However, this is where the similarities end. From their factually similar beginning, the treatment
of these two projects has been totally different.
I Total time spent investigating the I None I So far - 12 months and counting I
Total time from beginning of project Approximately 6 months.*
to comdetion
At least twice that long and counting.
The only rational reason for the different treatment’?-the City Council sponsored the City Hall
project, while mere citizens are sponsoring the Complex.
During the course of my presentations to you, I have been advised more than once to be patient
and less acerbic. The project will be approved I am continually advised. A few weeks ago I was being
lulled into a sense that everything would work out. With the disingenuous and offensive
misrepresentations made by two of your members to the traildopen space representatives, to which I
referred in my remarks last week, however, whatever trust was being built between us was broken.
When this Council continues throwing roadblocks in the way of the Complex, having thrown
none in the way of the City Hall project, we citizens have the right to ask, WHY? And we also have the
right to be suspicious when no rational explanations are forthcoming.
The minutes of the December 1 1,200 1 Council meeting, where the $16 million Farmers
purchase for the City Hall project was approved, are instructive:
Council Member Finnila said “[Ilt is estimated that a larger city hall will be required between the
years 2007-1 1 . . . ”9 Question: If you can spend $16 million on a project you do not need for six to ten
years, shouldn’t you spend the necessary funds for a project, which is sorely needed NOW?;
Council Member Kulchin said “ . . . [Lland is at a premium in Carlsbad and this is a good
opportunity to purchase a building in a central location.”” Question: If one of the reasons for spending
$16 million six to ten years ahead of the need is inflation, is not inflation a significant consideration for a
project which is sorely needed now?
Mayor Lewis “[Cloncurred [with Ms. Kulchin’s comments] and spoke of the importance of
future planning.”” Question: If spending $16 million on a project which is not needed for six to ten
years is good future planning, isn’t spending the necessary funds on a project which is needed now
better future planning?
On the off chance the “budget” considerations the Council and staff are throwing at the Complex
in both these on-going meetings and the press interviews which have amazingly been cropping up (by
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the way I could find no press interviews which were given regarding the $16 million spent on the City
Hall project), I will be meeting with your finance director on Thursday. If she shows me there is a
significant financial problem with the Complex, I will come to next week’s meeting prepared to say so.
If not, I will be here fighting to get you to finally do what you promised, and that is, at the very least, to
build the Complex recommended by the Parks and Recreation Commission in one phase NOW!
Thank you.
City of Carlsbad, AB# 16,459, 1, December 1 1,200 1.
City of Carlsbad, AB#17.148, 11, April 22,2003.
City of Carlsbad, AB#l6,459, 3, December 11,2001.
City of Carlsbad, AB#17,148, 10, April 22, 2003.
City of Carlsbad, AB#16,459,3, December 1 I, 2001.
City of Carlsbad, AB#17,199, 19, June 10,2003.
City of Carlsbad, AB# 17,148, 1 1, April 22,2003.
City of Carlsbad, AB#16,459,35, December 11,2001.
City of Carlsbad, Minutes of Citv Council (Regular Meeting), 3-4, December 11,2001
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lo ~d. at 4.
Id. at 4. 11
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