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HomeMy WebLinkAbout2003-06-17; City Council; 17205; Adoption of 2003-04 Operating & CIP Budgetsf CITY OF CARLSBAD, CARLSBAD MUNICIPAL WATER DISTRICT AND HOUSING AND REDEVELOPMENT COMMISSION - AGENDA BILL ADOPTION OF THE 2003-04 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGETS AND REVISION OF FEES AND DEPT. CHARGES FOR SERVICES CITY DEPTmHD. ATTY. & CITY MGR @ RECOMMENDED ACTION: 1. Hold a public hearing on the City of Carlsbad’s, Carlsbad Municipal Water District‘s, and Housing and Redevelopment Commission’s 2003-04 Operating Budget, and 2003-04 to Buildout Capital Improvement Program. 2. Adopt Resolutions No. 2003-151 I 1184 , and 368 , adopting the final Operating Budgets for 2003-04, and appropriating funds for the 2003-04 Capital Improvement Program. , adopting the Gann spending limit for the City of Carlsbad for 2003-04. 3. Adopt Resolution No. 2003-152 4. Adopt Resolution No. 2003-153 , adopting changes to the Master Fee schedule. ITEM EXPLANATION: The proposed 2003-04 Budget totals $198.1 million, of which $142.6 million is the Operating Budget and $55.5 million is the Capital Improvement Budget. Operating revenues total $147.2 million and Capital revenues total $37.8 million, for a total of $185 million. The Operating Budget provides the funding for all operations of the City including police and fire services, library operations, utility services, affordable housing programs, recreation programming, park and street maintenance, and many others. The Capital Improvement Program outlines the financing plans for all of the City’s major construction projects including civic facilities, roads, water and sewer lines, as well as all the other infrastructure needs. The following is a brief summary of the proposed budgets. More information can be found in the overviews of the Operating Budget and the Capital Improvement Program in Exhibits 1 and 2. Operating Budnet 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 $147.2 million, which is a $900,000 increase over the current year projections. General Fund General fund revenues for 2003-04 are estimated at $90.9 million. Revenue growth has slowed in the past year; however, the City’s General fund revenues are still expected to grow by 2.9% for the 2003-04 fiscal year. A significant portion of the increase is in taxes, where the decreases are in the development revenues. Property taxes, the City’s largest single revenue source, are projected to grow to $26.9 million, a 9.4% increase over the past year. Property taxes for fiscal year 2003-04 are based on property values as of January 1, 2003. Sales taxes are expected to total $25.1 million for 2003-04, an increase of 6% 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. I PAGE 2 OF AGENDA BILL NO. 17,205 Due to the state of the economy, a “hold the line” budget approach was taken this year. The goal was preservation of the quality and level of our services while maintaining a balanced budget for now and in the future. This year’s proposed budget maintains the high level of services Carlsbad’s citizens have come to expect but does not include any enhancements other than those previously planned. Some of the enhancements already planned are for new facilities such as Carrillo Ranch and trails, and the new computer-aided dispatch system for public safety. Customer service continues to be high priority for the City of Carlsbad with an emphasis on cost savings. These program increases resulted in 1.25 new full-time positions, and deletion of two police positions that were previously funded by grants, for a net decrease of .75. In addition, $31 3,000 of capital outlay requests has been included in the proposed General fund budget. 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. Capital Improvement Program The 2003-04 to Buildout Capital Improvement Program (CIP) outlines approximately 149 future projects at a total cost of $365.6 million. Appropriations scheduled for 2003-04 total $55.5 million and will be added to approximately $105.6 million for ongoing capital projects that remain unspent at the end of fiscal year 2002-03, for a total appropriation of $161 .I million. Revenues for the CIP are projected at $37.8 million. Park projects programmed for the upcoming year include the construction of Larwin Park and Aviara Community Park, and the design of Alga Norte Park. Funding is provided for planning of trails at Lake Calavera, lighting improvements at Chase field, and for implementation of a new Computer-Aided Dispatch Center. Other projects include construction of the Vista Carlsbad and North Agua Hedionda sewer interceptors and construction of the South Agua Hedionda lift station and pump main, water transmission mains along El Camino Real and El Fuerte, and improvements to the Lake Calavera Reservoir. Street projects receiving appropriations in 2003-04 include the Rancho Santa Fe Road widening and realignment project and widening along sections of El Camino Real. In addition, next year’s Capital Improvement Program includes $2.4 million in funding for street overlay projects. Gann Limit In addition to adopting the Operating Budget, the City Council is asked to adopt the Gann Spending Limit as required by Article XlllB of the California Constitution. The Gann Limit creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The revenues, which are subject to this limitation, are those considered “proceeds of taxes.” The basis for calculating the Gann Limit began in fiscal year 1978-79, and is increased based on population growth and inflation. The City’s spending limit for 2003-04 is $134.7 million, with appropriations of “proceeds of taxes” of $83.5 million. Fees for City Services Some of the fees are increased annually based upon an index as stated in the resolutions or ordinances establishing the fees. In addition, staff has reviewed the fee schedules and is recommending changes to the Aquatics fees, Library fines and fees, Street Light Energizing fees, fire protection meter delivery charge, and the agenda subscription and document certification charge. In addition, facility fees are being added for the new Carrillo Ranch Park and fees for the Senior Center and Library are being increased. The revisions to these fees are shown in Exhibit 3. PAGE 3 OF AGENDA BILL NO. 17,205 Proposition C Funding In November 2002, the voters of Carlsbad approved Proposition C, which approved the spending of over $1 million in City funds, to construct facilities including a swimming pool complex, trails linkages and open space, a Citykafety training facility, and a portion of Cannon Road east of College (Reach 4). In order to set aside funds for these projects from the General fund reserves, staff is recommending that Council authorize an operating transfer in the amount of $35 million from the General fund balance to the General Capital Construction fund in fiscal year 2002-03. This will reduce the available General fund balance as of July 1, 2003 from an estimate of $83.6 million to $48.6 million. These funds will show as Prop C projects for years 5-10 in the Capital Improvement Program. Once more details of the projects become available, staff will return to Council to appropriate these funds to specific projects. ENVIRONMENTAL REV1 EW: In accordance with Government Code, all projects that receive appropriation of funds for fiscal year 2003-04 received a finding of General Plan Consistency by the Planning Commission at their meeting on May 7,2003. FISCAL IMPACT: The fiscal impact of the proposed budgets is detailed in the attached schedules. EXHIBITS: 1. 2. 3. 4. 5. 6. 7. 8. 2003-04 Preliminary Operating Budget overview. 2003-04 Preliminary Capital Improvement Program overview. Recommended changes to City Master Fee Schedule - June 2003 (Master Fee Schedules on file with City Clerk). Resolution No. 2003-151 of the City Council of the City of Carlsbad, California, adopting the Final Operating Budget and Capital Improvement Program for fiscal year 2003-04 for the City of Carlsbad and establishing controls on changes in appropriations for the various funds. Resolution No. 1184 of the Board of Directors of the Carlsbad Municipal Water District, California, adopting the water district final Operating Budget and Capital Improvement Program for 2003-04. Resolution No. 368 of the Housing and Redevelopment Commission of the City of Carlsbad, California, approving the Operating Budget of the Redevelopment Agency and Housing Authority for fiscal year 2003-04. Resolution No. 2003 - 157 of the City Council of the City of Carlsbad, California, establishing the 2003-04 appropriation limit as required by Article XlllB of the California State Constitution and State law. Resolution No. 2003-153of the City Council of the City of Carlsbad, California, adopting changes to the Master Fee Schedule. The Preliminary Operating Budget and CBpital Improvement Program 2003-04 is on file with the City Clerk. The Technical Appendix is available for review in the Finance and Engineering Departments. DEPARTMENT CONTACT: Cheryl Gerhardt; 760-602-2428; cnerh@ci.carlsbad.ca.us 3 Exhibit 1 2003-04 PRELIMINARY BUDGET Carlsbad is a full-service City providing the following: 0 Police Department 0 Development services 0 Fire Department, including paramedic 0 Street construction and maintenance 0 Water delivery system 0 Library and Arts programs Sewer system 0 Recreation programming for all ages 0 Solid waste services 0 Park lands 0 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 recoclnizes the imDortance 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 Citv of Carlsbad 2003-2004 Stratepic 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. Parks/Open Spacflrails - 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. Communication - 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 community and the qity 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. Y 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 .I% 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 11.1% 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 persiqt 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 ..__ 95- w- 85- w- .‘ /‘ - Ravenwr - - tx~dil~ns 85- 601 I 00.01 01 02 om 03-04 04-05 05-t16 0607 07-08 - Fmca~l- Per LAO “Overview of the May Revision” Exhibit 1 (cont.) - Median SFD Home Prices 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 4‘h 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 5% 5% - 4% - 4% - 3% - 3% 2%- 2% - 1% - f II I 1998 1999 2000 2001 2002 II I 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 commerciaVindustria1 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 Percentage Growth in Employment 0% 3 1996 1997 1998 1999 2000 2001 2002 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. \ Exhibit 1 (cont.) General Fund Revenues 100,000 90,000 80.000 70.000 60.000 50.000 40.000 30.000 20,000 10.000 94 95 96 97 98 99 00 01 02 03e 04e =Property Tax =Sales Tax 0 Transient Occ Tax OVehicle Lic Fees .All Gthen Franchise Taxes 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 7 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 (fis,cal 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, Exhibit 1 (cont.) t 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 not 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 n thousands Revenues over Expenditures ..... 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 I +Based on Budget Requirement +Less State take-away 1 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 Carls bad. Exhibit 1 (cont.) $ CHANGE $ 2.5 0.1 (0.5) (1.6) 0.4 $ 0.9 2003-04 PRELIMINARY OPERATING BUDGET OVERVIEW % CHANGE 2.8% 0.9% (1.6%) (12.4%) 17.4% 0.6% The preliminary Operating budget for fiscal year 2003-04 totals $142.6 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 GENERAL FUND SPECIAL REVENUE ENTERPRISE INTERNAL SERVICE REDEVELOPMENT TOTAL REVENUE PROJECTED ESTIMATED 2002-03 2003-04 $ 88.4 $ 90.9 i I .a 11.3 31.5 31 .O 12.9 11.3 2.3 2.7 $ 146.3 $ 147.2 The following table shows the total operating revenues the City anticipates receiving for 2002-03, as well as those estimated for 2003-04. % CHANGE 9.3% 5.9% 4.7% 2.7% 6.0% (25.5%) (3.5%) 2.8% 1 REVENUE SUMMARY BY FUND TYPE FUND PROPERTY TAX SALES TAX TRANSIENT OCC. TAX FRANCHISE TAXES VEHICLE LICENSE FEES DEVELOPMENT REVENUES ALL OTHER REVENUE TOTAL Revenue estimates for the Operating budget indicate that the City will receive a total of $147.2 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. I SIGNIFICANT GENERAL FUND REVENUES I (In Million PROJECTED 2002-03 $ 24.6 23.7 8.6 3.7 5.0 5.5 9 EST1 MATED $ 26.9 25.1 9.0 3.8 5.3 4.1 2003-04 17.3 I 16.7 $ 88.4 I$ 90.9 $ CHANGE $ 2.3 1.4 0.4 0.1 0.3 (0.6) $ 2.5 (1.4) Exhibit 1 (cont.) General Retail Food Products 12% Transportatlon 38% Construction 3% 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. 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- 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 Property and Sales Tax Growth In thousand's $30,000 $25,000 + Property Taxes $20,000 ~. $5.000 ~ $0 4 94 95 96 97 98 99 00 01 02 03e 04e unless there is a significant amount of housing activity. In more recent years, we have seen robust growth in property taxes due to new detelopments and a large number of resales within the City, spurring revaluation of the parcels. Sales taxes are expected to total $25.1 million for 2003-04, an increase of 5.9% over the 2002-03 projections. These projections assume a base increase of 5% plus additional amounts Sales Taxes for new retail sites locating to the City. One of the most significant new sites on 1 the horizon is a retail center in the 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 I I' 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 /I I $m,ooo $a8.000 $6.000 .%4*000 $2,000 $0 00 01 02 03e 04e Fiscal Year a result, TOT or fiscal year 2002 declined 8%. The recovery from those events has been stifled by the war in Iraq and the SARS 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 Exhibit 1 (cont.) include planning, engineering 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. Debelopment Revenues and Permits Issued 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 $9 1 r 2,500 FY 97 98 99 2,000 01 02 03e 04e 1-Revenues +Residential Permits Issued I 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 $16.7 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 $2.5 million, in the upcoming year. Essentially all of the growth is coming from the tax revenues, mainly property sales and TOT. Although the City had been experiencing revenue growth between 9% and 17% in the late 199O’s, it was not sustainable growth. Much of those increases were due to the opening of new hotels, restaurants, retail cen$ers, and new home development. As the City Exhibit 1 (cont.) matures, it will be increasingly more difficult 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. 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: . Donations; Grants (Section 8 Housing Assistance, Community Development Block Grants); 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. Special Revenue Funds Storm Water All Others Protection Housing Trust Section 8/ 49% 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 whkh 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. ! 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 i 22% Recycled Water 7 yo Water 68% 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 sucp 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 fro‘in 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 $175,000 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 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 $142.6 million, which xx 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. Budgetary 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 sahe level of service. The outcomes desired from this year’s budget process were: Nolayoffs. 0 0 No noticeable cuts in services and service levels. Identification of new revenue generation opportunities. 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. 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. Budgeted Expenditures Through the application of these guidelines knd 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. t 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. Citywide Trails System - 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 maiptenance. Thus, a part-time 1,000-hour position (.5 FIE) is requested in the budget along with funds to do the maintenance work. The total budget request is $27,175. Exhibit 1 (cont.) Citv Hall Campus - 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, $158,300 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 - ARJIS (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 com plai n ts. 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. , 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. Tech nology 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 lnformacion 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. Exhibit 1 (cont.) BUDGET FUND 2002-03 GENERAL FUND $ 82.8 ENTERPRISE 30.3 INTERNAL SERVICE 14.8 REDEVELOPMENT 1.7 TOTAL $ 140.2 SPECIAL REVENUE 10.6 Connecting Community, Place, and Spirit BUDGET $ % 2003-04 CHANGE CHANGE $ 84.7 $ 1.9 2.3% 31.4 1.1 3.6% 13.7 (1.1) (7.4%) 1.9 0.2 1 1.8% $ 142.6 $ 2.4 1.7% 10.9 0.3 2.8% 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 2-1/2 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 gathereg 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. Budnet by Fund Type 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. Exhibit 1 (cont.) $ CHANGE $ (0.1) 0.8 0.2 0.6 0.6 (0.2) $ 1.9 General Fund % CHANGE 0.0% -1.9% 2.8% 0.0% 1.4% 4.0% 8.1 % -8.0% 2.3% 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. G FUND POLICY/LEADERSHIP ADMINISTRATIVE SERVICES PUBLIC SAFETY COMMUNITY DEVELOPMENT COMMUNITY SERVICES PUBLIC WORKS CONTINGENCY NON-DEPARTMENTAL TOTAL NERAL FUND EXPENDITURE BY MAJOR SERVICE AREA (in Mil BUDGET 2002-03 $ 3.7 5.4 28.4 6.2 14.1 15.1 7.4 2.5 ons) BUDGET 2003-04 $ 3.7 5.3 29.2 6.2 14.3 15.7 8.0 2.3 $ 82.8 I $ 84.7 S 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). 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. 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. Exhibit 1 (cont.) 9 In the Community Development area, the .I% 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. m 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. 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: . 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‘iaries 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 staffs 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. Exhibit 2 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM OVE RVI E W The City of Carlsbad Preliminary Capital Improvement Program (CIP) is a planning document that outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures. The CIP is a financial planning document, not a commitment for spending. Spending authorization is given only at the time the City Council formally adopts the proposed budget, and, at that time, funds are only appropriated for the following fiscal year. The information shown in subsequent years is being provided to provide the most comprehensive snapshot of all the known future facilities the City of Carlsbad plans to construct. What is the definition of a CIP project? Projects that are shown in the CIP are generally defined as any construction (or reconstruction) of major infrastructure or buildings that are located on or in the ground. In most cases, the total construction cost of each CIP project is added to the City’s inventory of major infrastructure and buildings, and City-owned property. The 2003-2004 Preliminary Capital Improvement Program outlines $55.5 million in new appropriations, and projected revenues during the fiscal year are estimated at $37.8 million. As the City continues to grow and develop, there is a corresponding increase in the demand for development-related services and new facilities. To ensure that the necessary infrastructure and facilities are built on a schedule that meets or exceeds this demand, the citizens of Carlsbad adopted a Growth Management Plan in 1986. The Growth Management Plan states that unless a standard level of facilities is available to meet new demands resulting from the City’s growth, development cannot proceed. This Plan is the foundation for making decisions about the timing and prioritization of the capital projects under consideration. A discussion of the City’s Growth Management Plan is located at the end of this report. This year’s CIP reflects the Council’s continued commitment to constructing the necessary facilities, in response to the current and anticipated development activity occurring throughout the City. In addition to prioritizing projects based on growth management, projects are continuously evaluated and prioritized to ensure the City will have the funds to operate the facilities as well as construct them. Thus, the CIP and the Operating Budget are integral parts of the total City financing plan. Projects in this CIP document were prioritized based on the following criteria: 1. Is the project required to ensure the health and safety of the citizens, as the result of a legal mandate, or to maintain compliance with the City’s Growth Management Plan? Are operating funds available to operate the facility? 2. Is the project needed soon for growth management com p lia nce? 3. Is the project needed now for other City standards (example: ball field standards)? 4. Is the project needed soon for other City standards? 5. Does the project complete or provide part of the basic infrastructure (example: a linking road segment)? 6. Are there other reasons to construct the project (example: timing or funding opportunity, public demand)? Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM FUTURE GROWTH AND DEVELOPMENT In order to estimate future revenues from development, several assumptions about the rate and type of growth need to be made. These assumptions can change from year to year and correlate with the economic climate. Every year, City staff evaluates all existing and future development projects and compares these projects to the buildout capacity of the City using adopted general plans. Information about existing building activity combined with estimates of how remaining net developable land might develop are then summarized to prepare future projections about when and where growth will occur. Finance Department staff then prepares cash flow estimates combining existing fund balances with future estimated fee revenues paid by those developments, and compares these balances to the expenditure plan to ensure that funding will be sufficient and available for construction of the planned capital projects as shown in the CIP. In addition to evaluating whether or not capital funds are sufficient, significant operating cost impacts and availability of staff resources are also used to evaluate the timing of projects. Where funding discrepancies occur, alternative financing methods and project timing are again evaluated and recommendations are made to resolve the discrepancies. As a direct result of this type of evaluation, the recommendation was made to schedule the park development occurring in the next five years so that no more than one park would open each year. Residential development is expected to remain fairly steady over the next few years, with anticipated development at lower levels when compared to the previous five-year period. This slow down is not necessarily based on economic conditions, but rather on the development schedules of the remaining vacant parcels. Residential development for 2002-2003 is projected at 834 building permits, and construction is expected to average about 835 units per year over the next five years, as compared to an average of over 1500 units per year for the previous five- year period. Residential Units Trend 1986 to 2008 Non-residential development is also expected to remain fairly steady. The average annual square feet of non-residential development for the past 5 years was about 1,045,000. This year, the estimate is for 633,000 square feet, and estimates for the next 5 years are approximately 980,000 square feet per year. Projects include several commercial/retail developments located in or near the areas where most of the residential development has occurred or is planned over Exhibit 2 (cont.) 2003-2004 PRELl M I NARY CAPITAL IMPROVEMENT PROGRAM the next several years. Projects planned in the next five years include restaurants, hotels and timeshares, shopping centers, churches, assisted living facilities, a movie theater, and various other industrial and commercial development projects. Development estimates provide the data and basis for estimating future fee revenues, which are calculated by multiplying each applicable development fee by the estimated number of dwelling units and/or square feet of construction expected during each year. The following table shows the number of residential units and non-residential square feet of development used in calculating estimated revenues for 2003-2004 and subsequent years to buildout. Projected Development Residential and Non-Residential Construction Residential Non-Residential Year Units Square Feet 2002-2003 current 834 632,601 2003-2004 715 508,260 2004-2005 1,096 900,885 2005-2006 855 1,074,395 2006-2007 883 1,204,283 2007-2008 627 1,212,284 Years 6-1 0 2,530 6,234,975 Years 1 I-buildout 1,494 2,132,693 Total Future 8,200 13,267,775 REVENUES Revenues for Capital Projects from now until buildout total $434.1 million and are segregated into five major categories: (1) fees generated by development in Carlsbad, (2) special district fees and taxes (Community Facilities Districts and Bridge and Thoroughfare Benefit Districts), (3) Water and Sewer replacement reserves, (4) infrastructure replacement funds (other than sewer and water), and (5) other sources including grants, bond issues, and contributions from other agencies. Funding Sources 2003-2004 to Buildout Total Revenue = $434.1 million In Millions $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Development Special Water/Sewer Infrastructure Other Agencies Fees Districts Replacement Replacement Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Approximately 37% of all capital revenue is received as a result of development, and is dependent upon assumptions made about the City’s annual growth in dwelling units and commercial/industriaI square feet. Development revenues include Public Facilities Fees (PFF), Traffic Impact Fees (TIF), Park-In-Lieu Fees (PIL), Planned Local Drainage (PLD) Fees, Water Connection Fees (MFF), and Sewer Connection charges. Revenue from special districts, such as Community Facilities Districts and Bridge and Thoroughfare Benefit Districts comprise 10% of the total. Water and Sewer replacement revenues generated by user fees equal approximately 22% of total revenues, and are used to pay for replacement of existing water and sewer facilities. Infrastructure Maintenance revenues (16%) are transfers from the City’s General Fund which are being set aside to pay for replacement and major maintenance of capital facilities other than sewer and water facilities. The remaining 15% consists of revenues from other agencies and includes federal and State grants, the County sales tax program (TransNet), and contributions from Cities and other agencies. Calculation of Future Fees The revenue projections of the Capital Improvement Program reflect the growth assumptions identified in the previous section. The following information delineates how those assumptions were applied to estimate future development revenues. The mix of multi-family and single-family residential units is assumed to be 35% and 65% respectively and reflects the anticipated mix of residential development for each Local Facilities M ment Zone. The building permit valuation used for computing Public Facilities Fees is $154,000 per multi-family dwelling unit, and $240,800 per single-family dwelling unit. A building permit valuation of $38 per square foot of construction is used to calculate non-residential Public Facilities Fees. In order to calculate estimated revenues for Traffic Impact Fees (TIF), the number of average daily trips was computed for each type of development use. A multi-family residential dwelling unit is assigned eight trips per day and a single-family unit is assigned ten trips per day. Each residential trip is valued at the current TIF of $96. The trips-per-day value for commercial and industrial buildings are averaged at 32 trips per 1,000 square feet of development, although the actual volume of trips generated by commercial/industriaI building can vary widely depending on the ultimate land use. The value assigned to each commercial/industriaI trip is $39. CFD No. 1 is a Citywide district established to finance various civic facilities required under the City’s Growth Management Plan. CFD No. 2 is proposed to fund Rancho Santa Fe Road and Olivenhain Road, but has not yet been formally established. A prepayment program is in place to enable development to proceed within this proposed district. Park-in-Lieu Fees are collected for the purchase and development of parkland within each quadrant of the City, and the fees are based on the acquisition cost of parkland. Projects in the CIP funded with Park-in-Lieu Fees include development of Larwin Park and future park development in the NE Quadrant, and Hosp Grove/Buena Vista Lagoon recreational improvements. There are two existing Bridge and Thoroughfare Fee Districts (BTD), which were formed by property owners to finance specific road construction projects located within each of the district boundaries. Poinsettia Lane - Aviara Parkway (BTD No. 2) was formed to finance the construction of Poinsettia Lane between Aviara Parkway and El Camino Real and Aviara Parkway between Palomar Airport Road and Poinsettia Lane. BTD No. 3 (Cannon Road West) was formed to fund portions of Cannon Road from Interstate 5 to El Camino Real. Although construction of this project is complete, revenues collected from future development within the district will be used to repay an advance that provided interim funding to complete the project. Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Three additional financing districts are in the formation process to provide funding for College Boulevard and Cannon Road extensions east of El Camino Real, the Melrose Drive and Faraday Avenue extensions, and the Poinsettia Lane extension east of El Camino Real. City staff is currently working with property owners with pending developments in those areas to assist in the formation of those financing districts. CAPITAL PROJECTS The following two sections provide summary expense and revenue data and information about the major capital projects. The first section contains an overview of the entire expenditure plan through buildout of the City, and the second section focuses on the next five years. CAPITAL PROJECTS 2003-2004 TO BUILDOUT The CIP for 2003-2004 to buildout outlines approximately 153 future projects at $400.6 million. Of all the capital projects the City has planned for the future, approximately 25% of the expenditures will be for street and traffic signal construction projects, which total $101.3 million. Included in this category is construction of several major roadways that will add east to west and north to south connections and provide additional routes to neighboring cities. CIP Projects - All Future Projects I I Type of Project Quantity Total Cost Streets/Circulation 66 $101,325,115 Parks 15 70,988,910 Sewer 21 64,2 1 2,750 Water 34 24,007,818 Facilities/Civic 7 88,663,743 Drainage 6 15,170,000 Other (loans) N/A 36,199,590 Total Future 149 $400,567,926 Expenditures by Category 2003/2004 to buildout Total = $400.6 million In Millions $80 $60 $20 SO Civic Drainage Parks Sewer Water Streets Loans Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM The following is a list of major street projects in the 2003-2004 to Buildout CIP: 0 0 0 0 Faraday Avenue and Melrose Drive Extensions east of El Camino Real (*) Poinsettia Lane east of El Camino Real (*) Cannon Road and College Boulevard East of El Camino Real (*) Rancho Santa Fe Road to San Marcos and Encinitas (*) These roads will be constructed by developers that are required to build them in Funding for these roads is conjunction with their development projects in those areas. therefore not included in the CIP. Proposed Major Road Projects CITY OF CARLSBAD ClRCULATlON PLAN PACIFIC OCEAN Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Expenditures for park construction and acquisition projects are expected to cost about $71 million between now and buildout of the City, and include: Northwest Quadrant Northeast Quadrant NW Quadrant Park (Pine School) Community Facility (Pine School) Cannon Lake Park Hosp Grove-Buena Vista Lagoon Recreational Improvements Larwin Park Southwest Quadrant Poinsettia Park Phase II Aviara Community Park Aviara Community Facility Southeast Quadrant Alga Norte Park Swimming Pool at Alga Norte Leo Carrillo Park Phase Ill In addition to the quadrant based parks shown above, a centrally located park is planned for construction on a 100-acre site, and a recreational facility located in the industrial area is also scheduled in the future. Sewer projects total $64.2 million. Included is construction of the South Agua Hedionda Lift Station and Force Main, construction of the North Agua Hedionda interceptor, continued construction of the Vista/Carlsbad trunk line interceptor, and refurbishment and replacement of existing sewer lines. In addition, funding is provided for the repayment of bonds for the expansion of the Encina Wastewater Facility, and the Encina Water Pollution Control Facility projects. Construction of City facilities such as libraries and administrative facilities, and police and fire facilities and projects funded with Proposition C allocations (open space and trails, a swimming pool, a safety training facility, and contributions towards the unfounded portions of Cannon/College east of El Camino Real) total $88.7 million of the total planned capital expenditures to buildout. The Capital Improvement Program includes funding to construct a new Civic Center and Public Works Center, and to reconstruct and expand the Cole Library. Funding is also provided for the relocation of Fire Station #3 located at Chestnut and El Camino Real, and the construction and relocation of Fire Station #6 to a location along Ranch Santa Fe Road. A new Computer Aided Dispatch (CAD) will replace the existing 13-year-old CAD and implement an 800 MHz radio data communication system. The primary purpose of the CAD system is to enable the police and fire departments to provide timely response to emergency incidents. The total cost of the project is $3.6 million, of which $2.4 million is appropriated through the CIP, with the remaining funds appropriated in the City’s Operating budget. Water projects total about $24 million and include construction of new waterlines, both potable and recycle, concurrent with new development. Some of the major areas in which these installations or upgrades are planned include segments of College Boulevard, El Fuerte, and along El Camino Real. Replacement of potable and recycled waterlines is also included in this category. Specific timing and cost estimates for all capital projects are identified in the Detail Schedule of Capital Projects (2003-2004 to Buildout) following this narrative. Following the schedule of funded CIP projects is a list of projects for which no funding has been identified at this time. The unfunded projects are the Encinas Creek Bridge Replacement, Widening along El Camino Real, completion of the construction of Poinsettia Lane to El Camino Real and construction of the northern section of Cannon Road at College Boulevard. Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM CAPITAL PROJECTS -THE NEXT FIVE YEARS Some of the major projects planned for the next five years are discussed below. Their locations can be seen on the map in the previous section. Streets - Several large street construction projects are planned for the next five years. The widening and realignment of Rancho Santa Fe Road will improve regional and local traffic flow generated in the southern part of the City. Projects constructed by developers (funding not shown in the CIP) are College Boulevard and Cannon Road extensions to the east and north, Faraday Avenue and Melrose Drive extensions, and the extension of Poinsettia Lane and completion of El Fuerte. These roads are located east of El Camino Real and will alleviate traffic on Palomar Airport Road. 0 Aviara Communitv Park - Construction is scheduled to begin next fiscal year on this 24-acre site located in the southwest quadrant north of Poinsettia Lane and west of El Camino Real. The park is planned to include a ball field, a soccer field, basketball courts, tot lots, and open play and picnic areas. 0 Larwin Park - Larwin Park is located on a 22-acre site in the northeast quadrant of the City. Plans for development of this park include constructing trails, a tot lot, and other amenities. Construction and completion of this park is expected to occur next fiscal year. Aha Norte Park - This park site consists of 30 acres in the Southeast Quadrant and may include amenities such as ball fields, soccer fields, picnic areas, tot lots, a skate park, a dog park, and restrooms and parking facilities. Design of the park will begin next fiscal year, with construction in the years to follow. Design of the pool is scheduled in 5 years. Poinsettia Park is scheduled. soccer field, tot lots, picnic areas, a tennis complex, and additional parking. Poinsettia Park Phase II - Within the next five years, development of the final phase of Plans include a community center/gymnasium, an enclosed 0 Pine School Park - Development of this park, located in the Northwest Quadrant is planned in the next five years. The master plan is complete, and the facility will include a multi-use field, basketball courts, picnic areas, tot lots and an ornamental garden area. 0 Civic Center and Public Works Center - Construction of a Civic Center Public Works Facility will consolidate administrative operations and facilities into a more centralized location. Staff, citizens and members of the business community have been participating in a visioning process to come up with what the needs are - for our citizens and for the City as an organization. Once the process is complete, a site will be chosen, and design and construction can begin. 0 Fire Station No. 6 Relocation - Fire Station No. 6 is currently located in a temporary facility in the southeast quadrant of Carlsbad. Relocation of this station to a permanent facility along the east side of Rancho Santa Fe Road is scheduled to occur concurrent with the road alignment project. This fire station is required to ensure a five-minute response time within the southeast part of the City as development in that area occurs. 0 Fire Station No. 3 Relocation - Fire Station No. 3 is currently located on the comer of Chestnut and El Camino Real, and will be relocated to the Calavera Hills Community Park area at Carlsbad Village Drive and Glasgow. Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM 0 Vista/Carlsbad Interceptor - The completed section of the Vista/Carlsbad Interceptor project involved installation of a new and upgraded sewer trunk line through the downtown portion of Carlsbad to the Encina Water Pollution Control Facility. The remaining sections of the project, extending from the Encina Facility to the Agua Hedionda Lift Station, are scheduled in the next five years. This project is required to handle buildout flows and replace deteriorated pipeline, and is partially funded by the City of Vista. Construction is cun-ently underway and will continue for several more years. 0 Water Lines - Several major water lines are scheduled for construction within the next five years: - - - - - Aviara Parkway from Poinsettia Lane to Palomar Airport Road College Boulevard from Cannon Road to Carlsbad Village Drive El Camino Real from Cassia to Poinsettia Lane El Fuerte from Poinsettia Lane to Palomar Airport Road Poinsettia Lane from El Camino Real to “D Reservoir 0 Recvcled Water Program - The City is constructing a recycled water facility, which includes construction of a treatment plant, pipelines, pump stations, flow equalization, and improvements to Mahr Reservoir. The project will increase the supply of water and reduce dependence on external suppliers. Funding has already been authorized for this project, which will span over several years. SUMMARY The proposed 2003-2004 to Buildout CIP is being driven by the City’s commitment to ensure that facilities are available to service the developing areas as well as the current residents. Carlsbad’s philosophy has been to build quality capital facilities, which meet, and at times exceed, Growth Management standards. Phasing projects over a period of years to match funding availability for construction and operations is often used to meet the needs of Growth Management. The 2003-2004 to Buildout Capital Improvement Program reflects the commitment of Carlsbad’s Council and staff to continue providing its residents with a better quality of life. Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM GROWTH MANAGEMENT PLAN The Growth Management Plan was developed and voted into law by the citizens of Carlsbad in 1986. The plan was established in an effort to manage development within the City by linking residential, commercial, and industrial development directly to standards for availability of public services and facilities. The Growth Management Plan adopted has established precise standards for eleven public facilities. Standards must be met at all times as growth occurs. Facilities for which standards have been established are as follows: - City Administrative - Wastewater Treatment - Circulation - Fire - Water Distribution - Schools - Library - Parks - Drainage - Open Space - Sewer Collection The Plan requires that appropriate public facilities be available, in conformance with the adopted performance standards, as development occurs. Unless each of the eleven public facility standards have been met, no new development can occur. The Growth Management Plan impacts both the Operating Budget and the Capital Improvement : Program. The detailed level of planning required by Growth Management has allowed Carlsbad’s Capital Improvement Program to anticipate the funding needed for capital improvements through buildout of the City. The timing of construction of facilities is governed by the rate of development and the eleven performance standards. New public facilities often require additional staffing and other resources, which affects the Operating Budget. Facilities such as community centers, parks, and fire stations have been constructed and opened to the public under this program. The Capital Improvement Program has been designed to specifically address areas where new or expanded facilities will be needed to maintain compliance with the adopted performance standards. With the adoption of the 2003-2004 CIP, compliance with the Growth Management Plan is assured. Exhibit 2 (cont.) 2003-2004 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM CALIFORNIA ASSEMBLY BILL 1600 (AB 16001 In 1987, the California Legislature passed Assembly Bill 1600 (AB 1600), which set forth the process a city or county must follow to establish developer fees to finance public facilities. This legislation applies to fees established, increased, or imposed on or after January 1, 1989, the effective date of the law. AB 1600 contains four general requirements: 1. A "nexus" or connection must be established between a development project or class of project and the public improvement being financed with the fee. All AB 1600 fees adopted by the City have met the nexus test. For example, Traffic Impact, Bridge and Thoroughfare District and Drainage Sewer Benefit Area Fees were all established under AB 1600. 2. The fee must be segregated from the General fund. Carlsbad segregates all capital funds not only from the General fund, but also each classification of fee as well. 3. Fees collected by a city or county must be spent or committed to a project within a five-year period. Funds are viewed to be committed if they are programmed to be spent on a specific project(s). If the money is not spent, findings must be made describing the continuing need for that money each fiscal year after the five years has expired. The City of Carlsbad commits the revenues from these fees through its Capital Improvement Program budget. This budget, which is adopted by the City Council, sets forth the City's Capital expenditure program from the current year to projected build out of the City. The expenditure plan is updated annually as part of the City's budget process. 4. Refunds must be made only if the City cannot make the required findings. At this time, no refunds are due because the City's Capital Improvement Program commits all AB 1600 fees to projects to be constructed both in the current year and in the future. Exhibit 3 RECOMMENDED CHANGES TO THE CITY FEE SCHEDULE - June 2003 (Master Fee Schedules on file with City Clerk) $ % Current Proposed Chanae Chanae 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 booWaudio item LosffDamaged 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 $50.00 $65.00 $15.00 30% $1 0.00 $12.00 $2.00 20% $20.80 Delete (I) $0.10 $0.25 $0.15 150% $0.05 $0.10 $0.05 100% $1 .oo $2.00 $1.00 100% $1 .oo $2.00 $1.00 100% .50 FEE .50 FINE (’) List price various List price + $40 if out of print variable up to list price $60.00 $1 09.00 $49.00 82% $1 01 .OO $1 74.00 $73.00 72% $165.00 $264.00 $99.00 60% $385.00 $385.00 $78.00 $135.00 $57.00 73% $125.00 $213.00 $88.00 70% (I) 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 (3) Above fees are for 18 months and include a $30 cost per light connection fee. Increases based on increased if the reserved book is not picked up by the patron. energy costs. Exhibit 3 (cont.) RECOMMENDED CHANGES TO THE CITY FEE SCHEDULE - June 2003 Aauatics Fees Current Recommended $ % 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 Adultrreen - Learn To Swim - R AdulVTeen - Learn To Swim - NR Parenvlnfant thru PSA Ill - R Parentllnfant 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 DivingEynchro 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-Profit/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 Fee ($1 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 Fee ($1 Change Change 3.00 4.00 35.00 50.00 45.00 70.00 60.00 90.00 90.00 1 10.00 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 1 .oo 1 .oo 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 50% 33% 75% 67% 50% 75% 43% 73% 80% 83% 60% 48% 62% 48% 62% 60% 71 % 60% 71 % 48% 62% 48% 62% 14% 33% 14% 33% 14% 43% 108% 108% 71 yo 25% Exhibit 3 (cont.) RECOMMENDED CHANGES TO THE CITY FEE SCHEDULE - June 2003 Senior Center Facilitv 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 per hour $ 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 15 20 25 30 35 15 20 30 35 40 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 Facilitv fees Room Attendant, AV Tech current $ 17 perhour Room Attendant, AV Tech proposed $ 20 perhour Cancellation Processing fee New $ 25 A B Gowland Meeting Room (per 4 hrs) current N/C N/C Gowland Meeting Room (per 1 hr) proposed N/C N/C Schulman Auditorium (per 4 hrs) current N/C N/C Schulman Auditorium (per 1 hr) proposed N/C N/C Conference Room (per 4 hrs) current N/C N/C Community Room (Cole Library)per hr proposed N/C N/C Categories C D E F N/C 20 30 40 N/C 20 30 40 N/C 25 75 100 N/C 25 50 55 N/C 15 25 35 N/C 20 30 40 Exhibit 3 (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. Carlsbad Senior Center activities. B. 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 C. 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 D. Carlsbad resident (70% membership Carlsbad residents) non-profit organizations (paid management): civic and social organizations. EXAMPLES: Carlsbad Boy’s & Girl’s Club E. 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 F. Resident commercial, business, and profit-making organizations: non- resident private party activities. EXAMPLES: Carlsbad Inn, non-resident weddings or receptions G. Non-resident commercial, business, political, profit making, and religious organizations. EXAMPLES: Trade shows, company training, meetings, and seminars 1of1 Exhibit 3 (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 CRITERIA: 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. CITY OF CARLSBAD PROPOSED REVISIONS TO THE MASTER FEE SCHEDULES JUNE 2003 FOR INFORMATIONAL PURPOSES ONLY These fees are increased annually based upon an index as stated in the resolutions or ordinances establishing the fees. Current Revised Change Affordable housing credit $41,200 $43,000 $1,800 License Tax on New Construction-mobile homes Traffic Impact Current Revised Change Traffic Impact Fee - Residnt'l Cost Per Trip (Out of CFD)$96 $98 2 Traffic Impact Fee - Commrc'l/Indust Cost Per Trip (Out of CFD)39 40 1 Traffic Impact Fee - Residnt'l Cost Per Trip (Inside CFD)63 64 1 Traffic Impact Fee - Commrc'l/Indust Cost Per Trip (Inside CFD)25 26 1 Planned Local Drainage Area Fees Sewer Connection Fees Current Revised Change General Capacity Fee All Areas $2,060 $2,098 $38 Plus Sewer Benefit Fees shown below Sewer Benefit Area Fees Current Revised Change Area C 1,615 1,645 30 Area D 1,618 1,648 30 Area E 2,386 2,430 44 Area F 2,399 2,443 44 Bridge & Thoroughfare District #2 Fees Current Revised Change Zone 5 $235 $239 $4 Zone 20 1,220 1,242 22 Zone 21 985 990 5 Bridge & Thoroughfare District #3 Fees Current Revised Change Fee per ADT $135 $138 $3 Agricultural Mitigation Fees Current Revised Change $8,053 $8,858 $805 No change. No change. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2E 27 2.5 Exhibit 4 RESOLUTION NO. 2003-151 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET AND CAPITAL IMPROVEMENT CITY OF CARLSBAD AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR THE VARIOUS FUNDS PROGRAM FOR THE FISCAL YEAR 2003-04 FOR THE WHEREAS, the City Council of the City of Carlsbad, California has reviewed the proposed final Operating Budget and Capital Improvement Program for fiscal year 2003-04 and has held such public hearings as are necessary prior to adoption of the final budgets. WHEREAS, the Planning Commission made a finding of General Plan Consistency for all projects receiving an allocation of funds for fiscal year 2003-04 on May 7, 2003 pursuant to Planning Commission Resolution No. 5401. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That certain documents now on file in the office of the City Clerk of the City of Carlsbad entitled, “City of Carlsbad, 2003-04 Operating Budget and 2003-04 to Buildout Capital ‘Improvement Program - Preliminary“ as amended in accordance with Exhibits A through C attached hereto and incorporated by reference herein, is hereby adopted as the Operating and Capital Improvement Budgets for the City of Carlsbad for the fiscal year 2003-04. 2. That the amounts reflected as estimated revenues for fiscal year 2003-04 as shown in Exhibits A and B are hereby adopted as the budgeted revenues for 2003-04. 3. That the amounts designated as the 2003-04 Budget request in Exhibits A and B are hereby appropriated to the department or fund for which they are designated, and such appropriation shall not be increased except as provided herein. 4. That total appropriations for each fund may only be increased or decreased by the City Council by passage of a resolution amending the budget except as provided herein. 5. That the following controls are hereby placed on the use and transfers of budget funds: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 2 of Resolution # 2003-151 Exhibit 4 A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the City Council or City Manager as described below. i. The City Manager may authorize all transfers of funds from account to account within any department. ii. The City Manager may authorize transfers of funds between departments within the same fund in an amount up to $100,000 per transfer. iii. The City Manager may delegate the authority to make budget transfers and adjustments. iv. The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue, which is designated for said specific purpose. v. The City Manager may authorize budget adjustments to increase the appropriations for the Sanitation Fund operating budget in an amount equal to the increases in costs of Carlsbad’s share of the Encina Wastewater Authority’s budget, as approved by the EWA Board. vi. The City Manager may authorize budget adjustments to increase the appropriations for the Workers Compensation and Liability funds operating budget in an amount equal to the increases in costs of claims expenses. vii. The City Council must authorize all transfers of funds from the budgeted Contingency Account. B. The City Manager may authorize emergency out of state travel for public safety or emergency services purposes. C. The City Council must authorize any increase in the number of authorized permanent personnel positions above the level identified in Exhibit C. 0. The City Manager may authorize the hiring of temporary or part time staff as necessary, within the limits imposed by the controls listed above. 1 2 3 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 I9 20 21 22 23 24 25 26 27 28 Page 3 of Resolution # 2003-151 Exhibit 4 6. That the legal level of budgetary control is the fund level. Budgets may not legally be exceeded at the fund level without appropriate authorization by the City Council. 7. That all appropriations for Capital Improvement Projects remaining unexpended at June 30, 2003, are hereby appropriated for such capital projects for the 2003-04 fiscal year. 8. That interest earned on grants may be appropriated during the year and all appropriations for grants remaining unexpended at June 30, 2003, are hereby appropriated for the 2003-04 fiscal year. 9. That all appropriations in the Operating Budget remaining unexpended at June 30,2003, are hereby appropriated to the 2003-04 fiscal year Operating Budget. 10. That all appropriations for outstanding encumbrances as of June 30, 2003, are hereby continued into 2003-04 for such contracts or obligations. 11. That budgeted appropriations for fiscal 2002-03 be increased to include a $35 million operating transfer from the General fund balance to the General Capital Construction fund. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 17th day of JUNE , 2003, by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard NOES: None ABSENT: None ATTEST: LORRAINE M. WOOD, City Clerk ' / (SEAL) CITY OF CARLSBAD Exhibit A 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 SPECIAL REVENUE STORM WATER PROTECTION POLICE ASSET FORFEITURE COPS GRANT POLICE GRANTS HOUSING SECTION 8 HOUSING TRUST FUND LIBRARY ENDOWMENT FUND LIBRARY GIFTWEQUESTS TREE MAINTENANCE MEDIAN MAINTENANCE STREET LIGHTING BUENA VISTA CRK CHNL MNT ARTS SPECIAL EVENTS SENIOR NUTRITION SENIOR DONATIONS CDBG ENTITLEMENT/REHAB COMMUNITY ACTIVITY GRANTS CULTURAL ARTS PROGRAM SISTER CITY DONATIONS ARTS GENERAUGALLERY DONATIONS 70,704,317 1.222.294 589.178 178.085 234.229 346,287 4,296,363 276,538 11 8,556 917,022 16.842 1.155.880 841,814 82,730 3,773 176,540 (1 1,454) 1,080,228 225.694 4,596 92.838 TOTAL 11,848,233 ENTERPRISE I 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 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 1 1,234.51 6 20.704.100 2,487.500 6,633,000 926,000 715,000 TOTAL 21.704.871 31,465,600 [INTERNAL SERVICE WORKER'S COMP SELF INSURANCE 1,812,090 670,231 RISK MANAGEMENT 2,877,068 730,009 HEALTH INSURANCE 679.581 3,137,000 RECORDSMANAGEMENT (156.1 IO) 1,030,400 VEHICLE MAINTENANCE 442,227 1,599,192 VEHICLE REPLACEMENT 5,610,132 1,754,369 INFORMATION TECHNOLOGY 2,602.706 TOTAL 13,867,694 3,960,300 12,881,501 ~ 75,746,129 (35,000,000) 300,000 1218,729 101,122 154,677 148.323 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 1,606.81 8 1,614,910 2,937,452 952,410 1,774,674 1,957,151 3,444,400 14.287.815 48.632.1 88 1,149,984 553,056 195,408 181.506 322,285 5,216,250 282.538 114,273 860.622 (107,281) 959,055 892.724 60.695 0 201,540 (841.005) (1,000,000) 55.228 2 15.894 5,296 85.006 10,403,074 11,813.963 2,204280 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) (1,225,000) 1,893,606 4,975,030 REDEVELOPMENT I VILLAGE OPERATIONS / DEBT SVC 1,739,863 VILLAGE LOWlMOD INCOME HOUSING 1,199,704 SCCRA OPERATIONS /DEBT SVC 374,801 SCCRA LOWIMOD INCOME HOUSING 110.228 TOTAL 3.424.596 1,624,601 440,000 221,000 50,000 2335.601 1,627,798 (300.000) 202.722 170.588 32.370 2,033,478 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 (535,000.000) ($5,486,350) $92,841,844 CITY OF CARLSBAD Exhibit A (cont.) OPERATING FUNDS PROJECTED FUND BALANCES PROJECTED PROJECTED BALANCE ESTIMATED ESTIMATED FUND BALANCE FUND JULY 1,2003 REVENUES EXPENDITURES TRANSFERS JUNE 30,2004 GENERAL FUND 1 SPECIAL REVENUE I STORM WATER PROTECTION POLICE ASSET FORFEITURE COPS GRANT POLICE GRANTS HOUSING SECTION 8 HOUSING TRUST FUND LIBRARY ENDOWMENT FUND LIBRARY GIFTS/BEOUESTS TREE MAINTENANCE MEDIAN MAINTENANCE STREET LIGHTING BUENA VISTA CRK CHNL MNT ARTS SPECIAL EVENTS SENlOR NUTRlTlON SENIOR DONATIONS CDBG ENTITLEMENT/REHAB COMMUNITY ACTIVITY GRANTS CULTURAL ARTS PROGRAM SISTER CITY DONATIONS ARTS GENERAL DONATIONS 48,632,188 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) 55.228 215.894 5.296 85.006 TOTAL 10,403,074 [ENTERPRISE I WATER OPERATIONS 11 .81 3,963 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 INTERNAL SERVICE WORKER'S COMP SELF INSUR 875.503 RISK MANAGEMENT 1,992,167 HEALTH INSURANCE 879.129 RECORDSMANAGEMENT (78.1 20) VEHICLE MAINTENANCE 266.745 VEHICLE REPLACEMENT (854,000) INFORMATION TECHNOLOGY 1,893,606 TOTAL 4,975,030 IREDEVELOPMENT 1 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 10.000 2,000 20.000 84.86837 1,244,750 403.900 182.915 30.000 5.549.702 256,340 6.000 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 ~ 11,254,759 10,896,721 21,023,400 20.874.669 2.181.300 1.913.1 17 6.682.400 8,029,909 1,041,000 276.761 11o.Ooo 300,000 31.038.100 31,394,656 779,000 737,000 925,000 955.500 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 13,704,471 300.000 54,953,601 999,184 204,156 179,493 151,506 31 7.31 2 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 10,761,112 11,962,494 2,472,463 3,328,228 5,502,211 1,782,681 25,048,277 P 326,898 1.224.148 282.493 (249.086) 161,325 0 875.781 2.621,559 VILLAGE OPERATIONS I DEBT SVC 1,436,666 VILLAGE LOW/MOD INCOME HOUSING 1,436,982 SCCRA OPERATIONS / DEBT SVC 425,213 SCCRA LOW/MOD INCOME HOUSING 127.858 TOTAL 3,426,719 1,672,500 1,563,217 367,000 98,948 489.200 183.528 161,400 38,117 2,690.100 1,883,810 (300.000) 1,245.949 1.705.034 730.885 251,141 3,933,009 TOTAL OPERATING FUNDS $92~34 7,844 $1 47.223959 $1 42,748,245 $0 $97,317,558 CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE 2002-03 2002-03 2000-01 2001 -02 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES (1) BUDGET GENERAL FUND I POLICY AND LEADERSHIP GROUP CITY COUNCIL 233,983 272,275 CITY MANAGER 969.1 30 1,080,772 COMMUNICATIONS 218,613 246,248 CITY CLERK 98,558 280,226 CITY ATTORNEY 775,468 939,657 CITY TREASURER 114,675 114,341 TOTAL POLICYLEADERSHIP GROUP 2,410,427 2,933,519 ADMINISTRATIVE SERVICES ADMINISTRATION 499,413 386,758 FINANCE 1,889,971 2,157.099 HUMAN RESOURCES 1,081,139 1,461,503 RECORDS MANAGEMENT (2) 1,261,230 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 ADMIN 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 3,40931 5 3,994,199 SENIOR PROGRAMS 366,497 401,419 TOTAL COMMUNITY SERVICES 10,687,778 I I .a88,347 279,220 298,551 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 3,714,161 510.655 714,140 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 11,450,059 27,693,844 28,421,920 408,220 480.810 244,102 305,658 223,692 250,132 2,819,460 3,267,587 1,672,614 1,873,526 5,368.088 6.1 77,713 7,955,809 8,059,193 628,097 710.1 95 3,919,787 4,558.457 718,115 736,425 13,221.808 14,064.270 Exhibit A (cont.) 2003-04 BUDGE1 305,95 1,162.76 780,71 309.13 971.38 168,95 3.698.89 710,64 2,601,498 2,028,93; I 5,341 ,O& 7.646,41f 1,59574; 9,242,152 636,60C 31 1,772 183,736 3,230,939 1,809,656 8,172,702 3,162,232 71 1,739 1,681,588 697,114 1,252,673 %INCA (DEC) 02-03 BUD TO 03-04 BUD 2.5% 2.9% -9.7% 2.0% 2.0% 2.0% -0.4% -0.5% -3.9% 3.3% 0.0% -0.8% 4.0% 1.3% 2.9% 32.4% 2.0% -26.5% -1.1% -3.4% -0.1% 1.3% 0.2% 2.7% -5.3% 1.3% Exhibit A (cont.) 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 PUBLIC WORKS ADMIN 488.41 I 492,064 739,866 807,075 ENGINEERING 4,328,569 4,312,623 5,613,693 5,266.844 FACILITIES MAINTENANCE 2,068.387 2,145,904 2,468,466 2,692,076 PARK MAINTENANCE 2,562,460 2,692,390 2,815,181 3,205,497 STREET MAINTENANCE 2,041,517 2,272,808 2,406.625 2,504.087 TRAFFIC SIGNAL MAINT 743,564 584,348 652,811 685,355 TOTAL PUBLIC WORKS 12,232,908 12,500,137 14,696,662 15,160,934 NON-DEPARTMENTAL COMMUNITY PROMOTION 370,279 308,798 332,160 363.000 BEACH PARKING 0 0 0 36,000 COMMUNITY CONTRIBUTIONS 0 65,235 1 1,235 11,235 HIRING CENTER 82,583 83,400 83,400 85,849 HOSP GROVE PAYMENT 800,000 800,000 800,000 800,000 PROPERTY TAX ADMlN FEE 255,619 285.775 315,000 325,000 DUES & SUBSCRIPTIONS 40,993 46,386 50,000 62,400 MISC I TRANSFERS OUT 106,400 1,302 0 0 ASSESSMENT SERVICES 15,073 13,923 13.800 58,400 INFRASTRUCTURE REPLACE TRANS 3,000,000 3,000,000 3,500,000 3,500,000 GOLF COURSE TRANSFER 600.000 0 600,000 600,000 TRANSFER TO CIP 4,300,000 1,500,000 0 0 TRANS TO STORM WATER PGM 0 1,873,190 1,076,419 1,076,419 MANAGEMENT INCENTIVE PAY 0 0 0 500,000 LEGAL SERVICES 0 0 0 0 OTHER 61,529 17,421 0 0 TOTAL NON-DEPARTMENTAL 9,632,476 7,995,430 6,782,014 7,418,303 SUBTOTAL GENERAL FUND 67,941,361 69,983,499 75,746,129 80,342.1 52 CONTINGENCIES 0 0 0 2,500,000 TOTAL GENERAL FUND 67,941,361 69,983,499 75,746,129 82,842,152 2003-04 BUDGET 800,03: 5,210,16 2,803.46! 3,532,671 2.61 1.24s 776.191 15,733,781 509,l OC 36.0OC 0 85,849 800,000 332,000 72,150 563.000 35,400 3,605,000 0 0 1,263,800 575,000 250,000 0 8,127,299 2.568.587 2,300,000 4,868.587 - %INCR (DEC) 02-03 BUD TO 03-04 BUD -0.9% -1.1% 4.1% 10.2% 4.3% 13.3% 3.8% 40.2% 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% 9.6% 2.8% -8.0% 2.4% Exhibit A (cont.) CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE 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 GIFTS/BEQUESTS 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) 210,762 SENIOR DONATIONS 87,860 CDBG ENTITLEMENT/REHAB 524,192 COMMUNITY ACTIVITY GRANTS 49,351 CULTURAL ARTS PROGRAM 22,808 SISTER CITY DONATIONS 2,860 ARTS GENlGALLERY DONATIONS 38,537 TOTAL SPECIAL REVENUE FUNDS 6.837.734 ENTERPRISE FUNDS WATER OPERATIONS 17.874.678 RECYCLED WATER OPERATIONS 1,315,999 SANITATION OPERATIONS 6,018,104 SOLID WASTE MANAGEMENT 260,656 GOLF COURSE 144.330 TOTAL ENTERPRISE FUNDS 25,613,767 767,391 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 1 1.679.675 18,892,192 1,476,399 6,498,962 215,720 168,967 27,252,240 19,243,574 1,658,624 6,559,430 202,856 181 ,I 54 1,076,419 65,000 347,541 0 5,335,989 255,163 12,000 95,307 0 727,159 577,780 1,139,441 1,590 31,632 0 0 769,692 60,500 20,000 4,000 20,000 10,539,413 21,113,828 1,904,416 6,768,912 223,410 300,000 27.845.638 INTERNAL SERVICE FUNDS j WORKERS COMP SELF INSURANCE 952.286 RISK MANAGEMENT 792,113 HEALTH INSURANCE 2,343,084 RECORDS MANAGEMENT (2) 0 VEHICLE MAINTENANCE 1,566,803 VEHICLE REPLACEMENT 1,079,331 INFORMATION TECHNOLOGY 2,937,523 1,093,092 1,373,974 2,464,031 969,761 1,640,651 1,179,122 3,631,939 1,606,818 1,614,910 2,937,452 952,4 10 1,774,674 1,957,151 3,444,400 TOTAL INTERNAL SERVICE FUNDS 9,671,140 12,352,570 14,287.815 30,310,566 1,083,799 1.487.459 3,083,952 1,182,687 1,823,291 1,667,000 4,495,634 14,823,822 2003-04 BUDGET 1,244,750 403,900 182,915 30,000 5,549,702 256,340 6,000 67,620 0 697,979 504,841 1 ,I 65,034 1,629 36,103 0 0 654,408 60,000 20,000 2,000 13,500 0,896.721 - 0,874,869 1,913,117 8,029.909 276,761 300,000 1,394,656 1,327,605 1,505,019 1,521,636 I, 126,466 1,689,420 873,000 i,461,325 %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% -1 2.6% 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% 3.6% 22.5% 1.2% -50.7% -4.8% 3.6% -47.6% 21.5% -7.6% r 2002-03 2002-03 2000-01 2001 -02 ESTIMATED ADOPTED 2003-04 DEPARTMENT ACTUALS ACTUALS EXPENDITURES (1) BUDGET BUDGET REDEVELOPMENT I VILLAGE OPERATIONS I DEBT SVC 2,221,511 2,102,507 1,627,798 1,501,860 1,563,217 VILLAGE LOW/MOD INCOME HSNG 74,014 45,170 202,722 89,692 98,948 SCCRA OPERATIONS I DEBT SVC 33,807 63,072 170,588 97,512 183,528 SCCRA LOW/MOD INCOME HSNG 0 19,345 32,370 22,906 38,117 TOTAL REDEVELOPMENT 2,329.332 2,230.094 2,033,478 1,711,970 1,863,810 (1) Estimated expenditures may exceed Adopted budget since they include prior year budget carryforwards. (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. 02-03 BUD TO 03-04 BUD 4.1% 10.3% 88.2% 66.4% 10.0% Exhibit B CITY OF CARLSBAD CAPITAL FUNDS PROJECTED FUND BALANCES FOR FY 2002-2003 JULY 1,2002 ESTIMATED JUNE 30.2003 UNRESERVED ESTIMATED ESTIMATED DEBT SERVICE PROJECTED FUND BALANCE REVENUES EXPENDITURES LOANS 8 OTHER BALANCE ASSESSMENT DISTRICTS 638.828 BTD#2 - POINSElTIA LANWAVIARA PKWV BTD#3 - CANNON ROAD WEST CFD #I - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - COUNTY GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5.13.16 PARK-IN-LIEU NE ’ PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN% PUBLIC FACILITIES FEE REDEVELOPMENT BONDS SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETBIKE TRANSNETIHIGHWAY TRANSNETILOCAL TRANSNETISTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 5,242,780 3.277,966 32,840.436 19,479,021 5,702,319 11,651,993 573.776 583,595 0 548.01 I 8,125.748 1,695,604 672,929 1,570,613 175,390 5,269,556 1,640,454 7.81 3.1 00 31,190.858 904,567 5,360,713 29.942.626 16,810,162 160,642 6,477,423 0 832,601 6.285.696 818.466 9,793,899 18,750,292 604,932 917,389 115,620 3,851,475 I 1,825,757 1.790.461 35.389.613 0 234,896 467.070 76.721 3,820,014 1,043.063 72,895 208.843 1.628.250 463,724 65,354 634,321 5,443.498 12,312 364,094 4,191,500 1.912.829 141,413 1,312,045 31 1,577 1 ,I 59,177 2.677.910 19.365 2,586.844 21,157,310 404,943 1,273.861 1,760.328 6,642,339 7,320,192 3,365,824 1,072,789 170,049 133,558 422.168 249,914 259.184 219,836 14,447 61,954 949 4,378,073 1,548 618.495 5.478.340 60,176 2,131,267 2,392.789 917,651 147,904 500,837 171,592 180,288 1,676,068 557,937 852,972 15,029,563 35,000 3.196.408 0 45,000 0 200.000 0 218,667 0 0 0 0 350,000 0 0 0 0 1,000,000 0 0 0 0 194,230 0 0 0 0 0 0 0 996,721 800,000 803.817 1,689.900 1,633,258 30,004,572 3,926,956 45,968.81 7 185.060 684.933 44,902 374.818 11,686.578 2,168,831 731.377 1,717,502 1,802,691 1,355,207 704,260 7,828,926 31,156,016 856.703 3,593,540 31,547,107 17,805,340 154,151 7,288,631 139,985 I ,811,490 7,287.538 279.894 10,531,050 24.078,039 23,984.586 WATER - REPLACEMENT 13,566,277 1,913.790 2,866,002 584,852 12,029,213 TOTAL 248,396.34 1 106,414.062 61,333.837 7,620,878 285,855,688 Exhibit B (cont.) CITY OF CARLSBAD CAPITAL FUNDS PROJECTED FUND BALANCES FOR M 2003-2004 JULY I. 2003 PROJECTED EST1 MATED . FUND BALANCE REVENUES ASSESSMENT DISTRICTS BTM2 -POINSETTIA LANUAVIARA PKWY BTM3 -CANNON ROAD WEST CFD #I -CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - COUNTY GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5.13.16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN'G PUBLIC FACILITIES FEE REDEVELOPMENT BONDS SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETBIKE TRANSNET/H IGHWAY TRANSNET/LOCAL TRANSNETSTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 803,817 1,689,900 1,633,258 30,004,572 23,984,586 3.926.956 45.968.817 185,060 684,933 44,902 374,818 I 1,686,578 2,168,831 731,377 I .717.502 1,802,691 1,355,207 704,260 7,828,926 31,156,016 856,703 3,593.540 31,547,107 17,805,340 154.151 7,288,631 139.985 1,811,490 7.287.538 279.894 10,531,050 24,078,039 0 1.195.982 101,250 3,604,962 1,576,242 2.519.687 1,000,000 0 0 0 0 3,605,000 0 28,177 73.331 115,651 264,436 814.419 604,497 3,525,454 651.000 1,749,725 1,637.21 6 1,400,000 0 796,052 0 0 3,693,000 0 1,758,153 3,737,276 WATER - REPLACEMENT 12,029,213 3,396,860 TOTAL 285,855,688 37.848,370 2002-2003 CONTINUING NEW APPROPR. APPROPR. 656.547 1,601,056 63.200 138,758 8.1 06,963 2,777,644 4,790.080 185,060 0 30,675 231,201 850.494 480.742 0 1.128.381 0 0 210,304 5,719.818 18.237.741 776,266 572,661 7,556,302 7.758.758 67,842 1,526.947 3,974 545,846 7,073,631 225,992 4,915,168 23,153.391 22,000 750,000 0 110,000 16,669,000 750,000 957,500 0 0 0 100,000 195.300 0 0 120.000 0 1,000.000 0 0 14.980.1 10 347,000 4,431,921 1,615,626 7.357.184 0 950,000 0 0 3,693,000 0 3,074,178 159,527 6,229,497 2,326,272 105,614,939 59,608,618 2003-2004 TOTAL CIP APPROPR. 678,547 2,351 ,OS 63,20C 248.7% 24,775,963 3,527,644 5,747,580 185.060 0 30.675 331.201 1,045,794 480.742 0 1,248,381 0 1,000,000 210,304 5,719,818 33,217.851 1,123,266 5,004,582 9,171,928 15.1 15,942 67,842 2,476,947 3,974 545.846 10,766,631 225.992 7,989.346 23,312.918 8,555,769 165,223,557 JUNE 30,2004 PROJECTED BALANCE 125.270 534.826 1,671,308 33,360,777 784,865 2.918.999 41,221,237 0 684,933 14,227 43,617 14,245,784 1,688,089 759.553 542,452 1.918.342 619.643 1,308,375 2,713,605 1,463,619 384,437 338.683 24.012.395 4.089.398 86.309 5.607.736 136.01 1 1,265,644 213,907 53,902 4,299,857 4,502,397 6,870,304 158,480,501 Exhibit B (cont.) CITY OF CARLSBAD CAPITAL FUNDS REVENUES ACTUAL AND ESTIMATED 19942000 2000-2001 2001-2002 2002-2003 2003-2004 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FUND REVENUES REVENUES REVENUE REVENUE REVENUE ASSESSMENT DISTRICTS 17,402.71 4 BTD#2 - POINSETTIA LANWAVIARA PW BTW3 - CANNON ROAD WEST CFD #1 - CITYWIDE CFD m - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - COUNTY GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5,13,16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN'G PUBLIC FACILITIES FEE REDEVELOPMENT BONDS SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNET/BIKE TRANSNET/HlGHWAY TRANSNET/LOCAL TRANSNETISTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 508.690 732,389 13,675,926 7,881,331 1,621,261 1,048,117 299,443 392.844 63.526 341.082 2,056,779 426,600 251,326 93.634 178.334 505,336 346.922 955.131 9,802,551 112,219 429,837 6,020,054 7,635,353 80,458 2,045,988 1,256 1,030,781 8,248.042 60.903 4,182,167 2,091,983 99,664 1,196.818 294,547 13,431,776 1,817.868 2,058.987 5,470.004 0 821,023 17.008 1.593.186 3,415,471 328.364 197.908 107,109 299.488 575,018 327.437 818,567 11,200.696 65,394 1,193,530 6,273.019 3.517.708 216.490 2.274.739 0 85,482 2,166,597 127.491 4,746,630 652,387 1,254,130 3.850.521 200.1 51 8,150,245 3,268,765 2,078,795 4.278.498 0 290,318 342,827 1,070.012 3,676,384 146,865 108,709 532,417 282.916 538.255 979,445 1 ,I 77,836 6.741.413 130.718 800,554 9,472,325 3,171.976 7,941 1.242.674 0 52,570 2,508,640 70,313 2,546.628 16,722.716 604,932 917.389 115,620 3,851,475 1 1.825.757 1,790.461 35.389.61 3 0 234,896 467,070 76,721 3,820 ,O 14 1,043,063 72,895 208.843 .1.628.250 463,724 65.354 634,321 5,443.498 12.312 364,094 4,191,500 1,912,629 141.413 1,312,045 31 1,577 1 ,I 59,177 2,677,910 19.365 2,586,644 21,157,310 0 1,195.982 101,250 3,604,962 1,576,242 2.519.687 1.000,000 0 0 0 0 3.605.000 0 28.177 73,331 115.651 264.436 814,419 604,497 3.525.454 651,000 1,749,725 1,637,216 1,400,000 0 796.052 0 0 3,693,000 0 1,758,153 3,737,276 WATER - REPLACEMENT 10,683,240 4,159,407 3,457,473 1,913,790 3,396,860 TOTAL CAPITAL FUNDS 101,206,217 69,570,013 79,153,030 I 06,414,062 37.848,370 Note: Revenues include interfund loans and transfers in. Exhibit B (cont.) CITY OF CARLSBAD CAPITAL FUNDS BUDGET EXPENDITURE SCHEDULE 2000-2001 2001 -2002 2002-2003 FUND ACTUAL ACTUAL ESTIMATED ASSESSMENT DISTRICTS BTDW - POINSElTIA LANWAVIARA PW BTD#3 - CANNON ROAD WEST CFD #I - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - COUNTY GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5.13.16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN’G PUBLIC FACILITIES FEE REDEVELOPMENT BONDS SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNET/BIKE TRANSNET/HlGHWAY TRANSNET/LOCAL TRANSNETBTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 84,523 1,129,000 499,500 2.979.486 946,720 258,440 1.812.074 805,291 200.000 17.008 36,228 0 392.320 10,184 0 408,402 0 -0 655,081 9.1 56,779 43,316 756,933 1,587.897 2.389.869 129.000 1.225.1 08 0 209,467 718.530 68.047 1.862.247 166,387 1.136.432 1,169,980 133,140 17,048,549 1,100,912 1.874,437 1,475,917 81,387 666,442 342,827 2,449,474 842,691 296,300 3,868 204.833 424,109 624,978 130.995 394,569 5,954,871 497,112 332.469 9,321,046 2,081,600 146,114 193,236 0 I1 3.126 5,470.554 699.451 2,494.1 92 533.672 439.943 4.470.269 1,760,328 6.687.339 7,320,192 3,565,824 1,072,789 388.716 133,558 422,168 249,914 259.184 569,836 14.447 61,954 949 4,378,073 1,001,548 618.495 5,478,340 60,176 2,131,267 2,587,019 917,651 147,904 500,837 171,592 180.288 1.676.068 557,937 1,849.693 15,829,563 WATER - REPLACEMENT 1,407,665 1.643.575 3,450,854 68,954.715 TOTAL CAPITAL FUNDS 29,955.502 59,882,858 2002-2003 2003-2004 2003-2004 CONTINUING NEW TOTAL CIP APPROPR. APPROPR. APPROPR. 656,547 1,601,056 63,200 138.758 8,106.963 2,777,644 4,790,080 185,060 0 30.675 231,201 850.494 480 I 742 0 1,128.381 0 0 21 0,304 5,719.818 18,237,141 776,266 572,661 7,556,302 7.758,758 67.842 1.526,947 3,974 545.846 7,073.631 225.992 4,915,168 23,153,391 22,000 750,000 0 11 0,000 16,669,000 750,000 957,500 0 0 0 100,000 195,300 0 0 120,000 0 1,000,000 0 0 14,980,110 347,000 4,431,921 1,615,626 7,357,l 84 0 950,000 0 0 3,693,000 0 3,074,178 159,527 678.547 2,351,056 63.200 248,758 24.775.963 3,527,644 5,747,580 185,060 0 30.675 331,201 1,045,794 480,742 0 1,248,381 0 1 .ooo,ooo 210,304 5,719.818 33,217,851 1,123,266 5,004,582 9,171,928 15.1 15,942 67,842 2,476.947 3.974 545,846 10,766,631 225,992 7,989,346 23,312,918 2,326,272 8,555,769 105,614,939 59,608,618 165,223,557 6,229.497 rn X 3 0- r+ W n 4. 4. n .. 0 3 r+ Exhibit C PERSONNEL ALLOCATIONS FOR 2002-03 AND 2003-04 ADJUSTED OVER FINAL PRELIMINARY (UNDER) BUDGET BUDGET 2002-03 MAJOR SERVICE AREA 2002-03 2003-04 ALLOCATED )POLICY AND LEADERSHIP GROUP 1 CITY COUNCIL CITY MANAGER COMMUNICATIONS CITY TREASURER CITY CLERK CITY ATTORNEY 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 ADMINISTRATIVE SERVICES 1 ADMINISTRATION RECORDS MANAGEMENT INFORMATION TECHNOLOGY FINANCE RISK MANAGEMENT HUMAN RESOURCES &WORKERS COMP )PUBLIC SAFETY 1 POLICE FlAE )COMMUNITY DEVELOPMENT I COMMUNITY DEVELOPMENT ADMINISTRATION BUILDING INSPECTION ECONOMIC DEVELOPMENT GEOGRAPHIC INFORMATION PLANNING HOUSING AND REDEVELOPMENT ICOMMUNITY SERVICES 1 I I LIBRARY CULTURAL ARTS RECREATION SENIOR PROGRAM hPUBLlC WORKS 1 )PUBLIC WORKS I ADMINISTRATION ADMINISTRATION ENGINEERING SERVICES GENERAL SERVICES MAINTENANCE & OPERATIONS 2.00 8.00 16.00 28.00 2.00 10.00 150.00 79.75 3.00 13.00 1 .oo 2.00 25.00 10.00 48.00 4.75 31 .00 2.00 6.00 57.00 57.75 73.00 2.00 8.00 16.00 28.00 2.00 10.00 148.00 79.75 3.00 13.00 1 .oo 2.00 25.00 10.00 48.00 5.00 31 .00 2.00 6.00 57.00 58.75 73.00 0.00 0.00 0.00 0.00 0.00 0.00 (2.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.25 0.00 0.00 0.00 0.00 1 .oo 0.00 FULL AND 3/4 TIME LABOR FORCE 646.75 646.00 (0.75) Exhibit C (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 640.00 640.00 0.00 34 Time Personnel in Full Time Equivalents 6.75 6.00 (0.75) Hourly Full Time Equivalent Personnel 145.92 147.77 1.85 TOTAL LABOR FORCE 792.67 793.77 1.10 LIMITED TERM EMPLOYEES INTERNS 2002/03 2003/04 Differencc Management Interns Building Inspector Intern Division Chief GIS Intern 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 22 24 2: 2E 27 2t Exhibit 5 RESOLUTION NO. 1184 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, CALIFORNIA, ADOPTING THE WATER DISTRICT FINAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM FOR 2003-04 WHEREAS, the Board of Directors of the Carlsbad Municipal Water District, California, has held such public hearings as are necessary prior to the adoption of the 2003-04 Operating and Capital Improvement Budgets. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District as follows: 1. That the above recitations are true and correct. 2. That certain documents now on file in the office of the Secretary entitled "City of Carlsbad, 2003-04 Operating Budget and 2003-04 to Buildout Capital Improvement Program - Preliminary," as amended in accordance with Exhibit A attached hereto and incorporated by reference herein, is hereby adopted as the Operating and Capital Improvement Budgets for the Carlsbad Municipal Water District for the fiscal year 2003-04. 3. That the amounts reflected as estimated revenues for fiscal year 2003-04 are hereby adopted as the budgeted revenues for 2003-04. 4. That the amount designated as 2003-04 Budget in Exhibit A is hereby appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided herein. 5. That total appropriations may only be increased or decreased by the Board of Directors by passage of a resolution amending the budget except as provided herein. /I1 //I 111 /I1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 2 of Resolution # 1184 Exhibit 5 6. That the following controls are hereby placed on the use and transfers of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Water Board or Executive Manager as described below. i. The Executive Manager may authorize all transfers of funds from account to account within the same fund in an amount up to $100,000 per transfer. ii. The Executive Manager may delegate the authority to make budget transfers. iii. The Executive Manager may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue which is designated for said specific purpose. iv. The Executive Manager may authorize increases in purchased water appropriations in an amount equal to the same percent that water sales exceed the amount of the original revenue estimate. B. The Board of Directors must authorize any increase in the number of authorized permanent personnel positions above the level identified in the final Budget. The Executive Manager may authorize the hiring of tehporary or part time staff as necessary, within the limits imposed by the controls listed above. 7. That all appropriations and outstanding encumbrances as of June 30, 2003 are hereby continued into 2003-04 for such contracts and obligations. Ill Ill Ill Ill Ill Ill 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 la 19 20 21 22 23 24 25 26 27 28 Page 3 of Resolution # 1184 Exhibit 5 8. All appropriations for Capital Improvement Projects remaining unexpended at June 30, 2003, are hereby appropriated for such capital projects for the 2003-04 fiscal year. PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors held on the 17th day of JUNE , 2003 by the following vote, to wit: AYES: Board Members Lewis, Finnila, Kulchin, Hall, Packard NOES: None ABSENT: None ATTEST: LORWNE M. W&OD, Secretary d Exhibit A 2000-01 2001 -02 ACTUAL ACTUAL PERSONNEL 2,160,295 2,315,045 MAINTENANCE & OPERATIONS 15,300,675 15,218,240 CAPITAL OUTLAY 53,676 0 PROGRAM: WATER OPERATIONS FUND: WATER ENTERPRISE PROGRAM GROUP: MAINTENANCE & OPERATIONS ACCT NO. 50i63io/5026310 2002-03 2003-04 BUDGET BUDGET 2,390,299 2,506,467 18,823,128 18,552,223 205,80 1 0 PROGRAM GROUP DESCRIPTION: The Carlsbad Municipal Water District, a subsidiary district of the City of Carlsbad, provides potable water service to approximately 85 percent of the City (66,300 customers). The District purchases 100% of its potable water as treated water from the Metropolitan Water District and the San Diego County Water Authority. PROGRAM ACTlVlTl ES : Administration 0 Provide support for Maintenance and Operations programs; coordinate budget development and fiscal activities; maintain payroll records and time card administration; coordinate interdepartmental and interagency communications. Construction Maintenance Provide water and wastewater maintenance, scheduled and performed to provide a high level of maintenance for infrastructure and maintained to ensure safe and efficient distribution and collection systems. Water ODerations rn Provide operation and maintenance of the potable and recycled water reservoirs, pumping, regulating, and disinfection activities; collect water quality samples to ensure compliance with State and federal regulations. Implement and enforce cross-connection control of potable and recycled water systems to ensure a safe supply of potable water, and compliance with State and federal regulations. Cross-Connection Control 0 Meter Services rn Collect water customer usage data for utility billing to ensure financial viability of the District through timely and accurate revenue collections; provide customer service for water utility customers; and assist construction and maintenance operations. PERFORMANCENORKLOAD MEASURES: Water Quality Ninety-eight percent (98%) of bacteria samples free of coliform bacteria as adopted by the City’s Performance Measurement Team. The State requirement is that less than 5 percent of all samples collected during any month are total coliform-positive. Fiscal Number Total Total Percent Year Collected Positive Bacteria-Free Bacteria-Free 1998-99 1,428 3 1,425 99.0% 1999-00 1,615 1 1,614 99.9% 2001 -02 1,719 1 1,718 99.9% 2000-01 1,725 3 1,722 99.8% Exhibit A (cont.) PROGRAM: WATER OPERATIONS PAGE TWO FUND: WATER ENTERPRISE PROGRAM GROUP: MAINTENANCE & OPERATIONS ACCTNO. 501631015026310 PERFORMANCENORKLOAD MEASURES (continued) Water Reliability Annual number of hours per mile of distribution line that a water main is out of service will not exceed a total of .05 hours in a year. Fiscal Total Miles HourslMile Year Hours Distribution Lines Distribution Line 1998-99 18 350 .05 1999-00 17 2000-01 0 200 1-02 0 400 410 431 .04 0.00 0.00 Water Delivery Efficiencv Annual water loss not to exceed six percent as set by SMWD (City) Standard Bulletin 166-4, Urban Water Use in California, August 1994. recommends that the loss after treatment be maintained at 10% or less. Distribution system losses commonly range between 6% and 15%. AWWA Fiscal Water Year Loss 1998-99 4.87% 1999-00 5.36% 2000-01 4.29% 2001 -02 4.24% Total annual expenditures per acre-foot of water delivered. Fiscal Cost Der Year Acre-Foot 1998-99 $852 1999-00 $877 2000-01 $902 2001-02 $883 WORKLOAD STATISTICS: Water Use Data Water Service Turn - Off/On 13.3% Collection Daily Operations6 ystern Maintenance 23.4% ReplacernenVRep Flow Control Station Maintenance ,29% Valve Maintenance Maintenance 5.68% 3.46% SIGN I FI CANT CHANGES: None. Exhibit A (cont.) PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY PROGRAM: FINANCE FUND: GENERALlENERPRlSE PROGRAM GROUP: FINANCE 2000-01 2001 -02 2002-03 2003-04 ACTUAL ACTUAL BUDGET BUDGET 1,534,182 1,701,644 1,853,898 2,085,896 727,932 837,860 1,268,170 990,902 14,856 12,145 0 0 ACCT NO. 001 131 0 SEWER ENTERPRISE TOTAL FUNDING 160,000 157,820 172,500 1 42,600 2,276,970 2,551,649 3,122,068 3,076,798 I WATER ENTERPRISE I 227,000 I 236,730 I 242,7001 332,7001 MISSION STATEMENT: Our mission is to ensure that the City of Carlsbad makes sound financial decisions. We take pride in accomplishing this mission by maintaining individual and departmental credibility; working together as a team while respecting each other’s differences; and consistently striving to go above and beyond expectations. PROGRAM ACTIVITIES: Lonq-Ranqe Financial Planninq and Budqet Manaqement 0 0 0 0 Prepare ten-year operating forecasts incorporating various “what if‘ scenarios to facilitate decision-making for the City Council and City departments. Prepare and monitor annual capital and operating budgets to allocate resources in a cost-effective manner in alignment with the City Council’s goals. Perform bi-annual review of all City fees and present recommendations for changes to the City Council. Prepare annual cost allocation plan to provide an accurate accounting of program costs. Monitor and report on revenues and expenditures monthly to ensure budgetary integrity and facilitate effective decision-making. General Accountina and ReDortinq 0 0 0 0 rn Assessment DistricVCommunitv Facilities District (CFD) Administration 0 0 Accurately bill, collect, record, and report all City revenues. Collect all funds due the City through timely follow-up of delinquent accounts and use of collection agencies. Prepare checks for City employees and for service and commodity suppliers. Prepare and maintain finance records and documents in conformity with generally accepted accounting principles and applicable legal and contractual provisions. Prepare Comprehensive Annual Financial Report in conformity with generally accepted accounting principles. Provide City management and the City Council with timely monthly financial reports. Monitor City debt issues to ensure timely payment and identify refinancing opportunities. Provide continuing disclosure as required. Monitor sales tax audit contract to ensure effectiveness. Perform in-house internal control reviews as needed.‘ Assist in evaluation and formation of new districts. Issue bonds for capital projects when required. Pay debt service and provide continuing disclosure information. Provide administration of CFDs and assessment districts as required by formation documents and State law. Purchasinq 0 0 0 0 Issue and manage formal bid and quotation processes. Track and renew annual commodity and service contracts. Develop and administer joint agency contracts. Assist City departments in the creation and administration of contracts. Publish Public Works contracts, maintain plan logs, and manage the bidding process. PROGRAM: FINANCE FUND: GENERAUENTERPRISE PROGRAM GROUP: FINANCE MonthTy Financial Status Report Awards received for Annual Budaet 0 Awards received for CAFR 0 PROGRAM ACTIVITIES (continued): ! Receivinq. Messenaer, and Mail Services 0 0 0 0 Act as shipping and receiving for the Faraday Administration Center. Purchase and distribute office supplies for City departments. Direct disposal of surplus and lostlunclaimed Police property. Collect outgoing City mail and apply postage. Sort and distribute all incoming City mail. WORKLOAD AND PERFORMANCE INDICATORS: 19 16 13 CSMFOlGFOA CSMFO/GFOA Not Available Excellence: Excellence: Distinguished Exhibit A (cont.) PAGE TWO ACCT NO. 001 131 0 - 0 0 0 Number of business licenses processed Number of account payable checks processed Number of payroll checks issued Number of electronic payroll checks I FY2000 I FY2001 I Operating and Operating and Budget Capital Capital Presentation 6,214 6,300 7,199 15,176 17,271 14,962 9,452 10,012 9,863 12,204 14,407 15,141 Averaae number of days to issue I I I .- issued I Outstanding debt issues administered I $81 million I $77 million 1 $71 million Number of purchase orders issued Dollar amount of purchase orders issued Pieces of mail processed FY 99-00 FY 00-01 FY 01 -02 1,703 1,626 1,529 $38,627,055 $48,197.538 $46,557,451 124,507 157,482 171,258 KEY GOALS FOR 2003-04: Top-Qualitv Services 0 0 Increase the number of cashiering sites available to our customers, provide more timely information, and streamline processes through the implementation of a Citywide cash management and reporting system. Enhance customer service to City employees by improving access to salary and benefit information and streamlining the payroll process. TransRortation/CircuIation 0 Assist in creating financing plans that will allow for the development of key road segments throughout the City. Financial Health Ensure continued financial health of the City through developing a balanced budget plan for the next five years. This includes a review of the City’s revenue base as well as analyzing the future operating costs for the City. Establish purchasing systems and structures that support the accomplishment of the City’s mission while ensuring that the City is receiving best value on all ot, its purchases of goods and services. Ensure the integrity of the City’s accounting system and the protection of the City’s assets through the implementation of an internal audit program. 0 0 SIGN I FI CANT CHANGES : The finance and purchasing functions were shown separately in previous years. These functions are now combined under this program. Exhibit A (cont.) PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY PROGRAM : ENGINEERING FUND: GENERALNVATER & SEWER ENTERPRISE PROGRAM GROUP: ENGINE ERIN G ’SE RVlCES ACCT NO. 0015710/5X15710 2000-01 2001-02 2002-03 2003-04 ACTUAL ACTUAL BUDGET BUDGEl 3,793,381 3,935,757 4,154,789 4,469,154 1,924,890 1,624,508 1,456,847 1,670,683 44,791 55,183 0 0 SEWER ENTERPRISE TOTAL FUNDING (GENERAL FUND I 4,328,5691 4,312,6231 5,210,161 I 623,030 674,500 463,316 379,905 5,29501 9 5,661,623 6,079,679 I 6,093,662 I WATER ENTERPRISE I 343,4201 674,5001 349,5191 503,596 I WORK PROGRAM: The Engineering Department supports the City Council’s goals by providing high-quality service in transportation, water supply, sewer collection, storm water control, parks, and general engineering, project management, front counter operations, and construction inspection. The Engineering Department provides services to the public and other City departments through preparation and processing of planning, design, and construction documents and performing transportation studies. The department is also responsible for ensuring that development and public improvements are properly designed, constructed, and inspected while maintaining public safety and the well-being of the community. PROGRAM ACTIVITIES: Administration Coordinate and direct all divisions to ensure accomplishment of City Council Goals and Objectives, provide administrative and clerical support to all divisions, ensure that the management reporting system is accurately maintained and generates all reports on schedule, and provide accurate records filed in a standardized and efficient manner. Provide comprehensive engineering input for all land use development applications; process engineering development plans and maps in a professional manner, maintaining high-quality and meeting production goals; ensure engineering questions related to land development are answered in a timely and friendly manner. Coordinate the preparation of the annual update to the City’s Buildout Capital Improvement Program, update existing facility impact fee programs, and assist developers with the formation of finance districts to fund major public improvements. Administer and coordinate engineering activities for beach erosion, lagoon dredging, growth management monitoring, special districts program, and facility mapping. Design Citywide capital projects including parks, roadways, storm water, domestic water, recycled water, and sewer systems; develop and maintain programs in water resources, domestic water systems, recycled water systems, sewer systems, and storm drain systems. For each of these programs, Design provides a variety of services including planning, water supply and quality monitoring, technical assistance, mapping, and facility location . Review, investigate, analyze, and resolve a wide variety of transportation issues, concerns, complaints, and inquiries. Maintain records of collision reports, speed surveys, and traffic counts, and assist in maintaining optimum traffic signal operations. Review traffic control plans, signing and striping plans, and traffic signal plans; review project submittals; provide interdepartmental coordination of various issues; and staff the Traffic Safety Commission. Development Services Planninq and Pronrams Desian Transuo rtation Exhibit A (cont.) PROGRAM: ENGl N EERl NG PAGE TWO FUND: GENERALWATER & SEWER ENTERPRISE PROGRAM GROUP: EN GIN EERl NG SERVICES ACCT NO. 001 571 0/5X15710 PROGRAM ACTIVITIES (continued): ! Construction Manaqement and Inspection Perform construction management, administration, and inspection for private grading agreements, development improvement agreements, and capital improvement projects through the application of uniform practices and policies; ensure construction of high-quality improvements; and minimize inconvenience to the public while ensuring safe work sites. WORKLOAD STATISTICS: Total Capital Improvement Program Appropriations $1 80,000,000 $1 60,000,000 $140,000,000 $1 20,000,000 $100,000,000 El Carry Forward $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 FYOO-01 FY 01-02 FY 02-03 FY 03-04 (Est.) KEY GOALS FOR 2003-04: TransDortationlCirculation Continue work toward the construction of major road projects including: College Reach A, Cannon Reach 4, Faraday/Melrose, Rancho Santa Fe Road, and Poinsettia Lane Reach E. Parkslopen SpaceKrails Complete permitting and design of Coastal Rail Trail in preparation for construction in FY2004 Jefferson Street Sidewalks under construction. Water rn rn rn rn rn rn rn Construct Carlsbad recycled water facility, recycled water transmission pipelines, and pump stations to distribute water from the Phase I1 recycled water program. Construct El Camino Real Transmission Main Replacement (Cassia to Palomar Airport Road). Construct La Costa Avenue and Palomar Airport and Sunnyhill Storm Drain. Construct El Camino Real Transmission Main Replacement (Faraday to Cougar). Reservoir Security Fence and Painting. Begin construction of Cannon Road Lift Station. Begin construction of Forest Avenue Sewer. Complete design of Lake Calavera Improvements. Environmental Manaqement Update Storm Drain Master Plans per the growth management data and National Pollutant Discharge Elimination System (NPDES) requirements and determine if the current planned facilities and Planned Local Drainage Area fees are adequate for the existing rat6 of growth and future buildout. SIGNIFICANT CHANGES : None. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2c 21 22 22 24 25 26 27 28 Exhibit 6 RESOLUTION NO. 368 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE OPERATING BUDGET OF THE REDEVELOPMENT AGENCY AND HOUSING AUTHORITY FOR FISCAL YEAR 2003-04 WHEREAS, the Housing and Redevelopment Commission of the City of Carlsbad, California (the Commission), has reviewed the operating budget for the Redevelopment Agency for Fiscal Year 2003-04; and WHEREAS, the Commission has reviewed the operating budget for the Housing Authority Section 8 Programs, for Fiscal,Year 2003-04; and WHEREAS, public hearings have been held as necessary prior to the adoption of the final operating budgets. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad, California as follows: 1. 2. That the above recitations are true and correct. That certain documents now on file in the office of the City Clerk of the City of Carlsbad entitled "City of Carlsbad, 2003-04 Operating Budget and 2003-04 to Buildout Capital Improvement Program - Preliminary" as amended in accordance with Exhibit A attached hereto and incorporated by reference herein, shall be and the same are hereby adopted as the Operating Budgets for the Carlsbad Redevelopment Agency and Housing Authority Section 8 Programs for the fiscal year 2003-04. 3. That the amounts reflected as estimated revenues for fiscal year 2003-04 are hereby adopted as the budgeted revenues for 2003-04. 4. That the amount designated as 2003-04 Budget in Exhibit A is hereby appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided herein. ill 1 c L c L 4 E E 7 & E IC 11 12 12 14 15 16 l'i 1E I< 2( 2; 2; 21 2L 2: 2E 27 2E Page 2 of Resolution # 368 1 Exhibit 6 5. That the following controls are hereby placed on the use and transfers of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Commission or Executive Director as described below. i. The Executive Director may authorize all transfers of funds from account to account within the same fund in an amount up to $1 00,000 per transfer. ii. The Executive Director may delegate the authority to make budget transfers and adjustments. iii. The Executive Director may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Director is authorized to increase an appropriation for a specific purpose where said appropriation is offset by unbudgeted revenue which is designated for said specific purpose. B. The Commission must authorize any increase in the number of authorized permanent personnel positions above the level identified in the final Budget. The Executive Director may authorize the hiring of temporary or part time staff as necessary, within the limits imposed by the controls listed above. 6. That all appropriations and outstanding encumbrances as of June 30, 2003, are hereby continued into 2003-04 for such contracts and obligations. Ill t Ill Ill Ill Ill Ill Ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 6 368 Page 3 of Resolution ## 7. That all appropriations for Capital Improvement Projects remaining unexpended at June 30, 2003, are hereby appropriated for such capital projects for the 2003-04 fiscal year. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing and 2003, by the Redevelopment Commission of the City of Carlsbad on the 17th day of JUNE following vote, to wit: AYES: Commissioners Lewis, Finnila, Kulchin, Hall, Packard NOES: None ! ABSENT: None - ATTEST: RAY~OND R. PATCHETT, Secretary Exhibit A 2000-0 1 ACTUAL PERSONNEL 188,206 PROGRAM: REDEVELOPMENT OPERATIONS FUND: REDEVELOPMENT AGENCY PROGRAM GROUP: HOUSING & REDEVELOPMENT ACCT NO. 8013410/8023412 VILLAGE AREA 2001 -02 2002-03 2003-04 ACTUAL BUDGET BUDGET 162,365 140,812 164,367 MAINTENANCE & OPERATIONS CAPITAL OUTLAY 2,023,455 1,938,584 1,359,623 1,398,850 9,850 1,558 1,425 0 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Imdementation of the Carlsbad Villaqe Redevelopment Master Plan Coordination of project development and permit processing. Administration of the Parking-ln-Lieu Fee Program. Property acquisition for future redevelopment projects and facilitation of new development. Communitv Relations and Public Relations Proqram Work with the Carlsbad Village Business Association and other business organizations to continue Community awareness and public relations activities on behalf of the Redevelopment Agency. Continue implementation of the Village Beautification Program through coordination of maintenance efforts in the Village. Work with NCTD to resolve parking and land-use-related issues associated with the Village Commuter Rail Station and surrounding properties. PERFORMANCENVORKLOAD MEASURES: rn Process 15 applications for redevelopment permits for improvements to existing structures or new construction projects. 1 Process 10 sign permit applications. Process 5 preliminary review applications. Facilitate the development of at least one “special opportunity project” identified in the Village Redevelopment Master Plan. KEY GOALS FOR 2003-04: Financial Health Process redevelopment permits for all types of projects within the Village Area that represent high-quality development or redevelopment of properties and buildings. Eliminate blighting conditions and influences in the Village Redevelopment Area through facilitation of private commercial andlor mixed-use development on North State Street. Acquire additional property for the construction of public parking lots in the Village Area. Implement the various actions outlined in the Redevelopment Operations Strategy to address the financing and land use strategies following the July 2006 expiration of the Redevelopment Plan. Transportation/Circulation 0 Balanced Community Development (also affects Financial Health goal) SIGN IF1 CANT CHANGES : None. Exhibit A (cont.) PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY PROGRAM: LOWlMODERATE INCOME HOUSING FUND: REDEVELOPMENT AGENCY VILLAGE AREA PROGRAM GROUP: HOUSING AND’REDEVELOPMENT ACCT NO. 8033420 2000-01 200 1 -02 2002-03 2003-04 ACTUAL ACTUAL BUDGET BUDGET 54,133 28,247 32,408 39,776 16,729 16,923 56,904 59,172 3,152 0 380 0 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Affordable Housina Proiect Processincl Procedures 8 Affordable Housinq Proiect Coordination 8 Affordable Housina Education Proaram Direct educational programs for citizens, businesses, and government agencies interested in affordable Continue development of affordable housing project processing procedures. Assist in the structure and implementation of affordable housing projects. housing. PERFORMANCENVORKLOAD MEASURES: Process at least 3 requests for financial assistance through the Housing Policy Team. Use existing low-income and moderate-income housing funds to purchase property for an affordable housing project in, or near, the Village Redevelopment Area through acquisition of vacant land and new construction or acquisition of existing units and rehabilitation. Participate in at least 3 outreach programs, professional conferences, andlor citizen and business groups on affordable housing. a KEY GOALS FOR 2003-04: Top-Quality Services 0 Continue to assist private developers to provide affordable housing as required by the lnclusionary Housing Ordinance. SIGN I FI CANT CHANGES : > None. Exhibit A (cont.) 2000-01 2001 -02 ACTUAL ACTUAL PERSONNEL 0 41,795 PROGRAM: REDEVELOPMENT OPERATIONS FUND: REDEVELOPMENT AGENCY PROGRAM GROUP: HOUSING AND REDEVELOPMENT ACCT NO. 8103420/8113412 SOUTH CARLSBAD AREA 2002-03 2003-04 BUDGET BUDGET 50,580 60,271 21,277 MAINTENANCE & OPERATIONS 46,457 123,257 33,807 CAPITAL OUTLAY GRAND TOTAL 0 0 475 0 33.807 63.072 97.512 183.528 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Implement Redevelopment Plan for South Carlsbad Coastal Redevelopment Area Provide funding for the potential realignment of Carlsbad Boulevard, which may yield excess property that could provide for public recreational facilities and/or development of cultural facilities or other public facilities. Revitalize, redevelop, andlor generally clean up the Ponto Area. Enhance commercial and recreational functions/activities in the Redevelopment Area and increase parking and open space amenities. PERFORMANCEWORKLOAD MEASURES: KEY GOALS FOR 2003-04: Complete land use concept and draft design guidelinks for planning area three. Hold public meetings to gather citizen input regarding the specific plan. Balanced Community Development Develop a Conceptual Vision for the entire South Carlsbad Coastal Redevelopment Area. SIGN IF IC ANT CHANGES : 1 None. Exhibit A (cont.) PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY PROGRAM: LOWlMODERATE INCOME HOUSING FUND: REDEVELOPMENT AGENCY SOUTH CARLSBAD AREA PROGRAM GROUP: HOUSING AND REDEVELOPMENT ACCT NO. 8123420 2000-01 2001 -02 2002-03 2003-04 ACTUAL ACTUAL BUDGET BUDGET 0 1 1,826 13,228 18,556 0 731 9 9,583 19,561 0 0 95 0 ! MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Implement Citvwide Affordable Housina Procrrams Affordable Housing Education Activities. Affordable Housing Project Coordination for lnclusionary Housing Development. Development of affordable housing programs. Facilitation of development of new affordable housing projects. PERFORMANCENVORKLOAD MEASURES: Utilize low-income and moderate-income housing funds to assist with the development and/or construction of at least one (1) new affordable housing project within the city limits of Carlsbad. Develop Housing Plan for South Carlsbad Coastal Redevelopment Area. KEY GOALS FOR 2003-04: Balanced Cornrnunitv DeveloDrnent Continue to assist private developers to provide affordable housing as required by the City’s lnclusionary Housing Ordinance. Implement affordable housing programs that serve to enhance the jobslhousing balance within the community. ! SIGNIFICANT CHANGES: None. Exhibit A (cont.) PERSONNEL MAINTENANCE & OPEWTIONS CAPITAL OUTLAY PROGRAM: RENTAL ASSISTANCE FUND: HUD SECTION 8 HOUSING PROGRAM GROUP: HOUSING & REDEVELOPMENT ACCT NO. 1903401 2000-01 2001 -02 2002-03 2003-04 ACTUAL ACTUAL BUDGET BUDGET 21 7,715 289,420 323,361 348,415 2,947,873 3,578,153 5,007,973 5,201,287 19,700 0 4,655 0 MISSION STATEMENT: \ Helping people achieve their dreams. PROGRAM ACTIVITIES: Section Eiaht Tenant-Based Rental Assistance Family Self-Sufficiency Provide federal funding to subsidize rents for 703 extremely low-income and very low-income households. Assist low-income households in the community to access rental housing that is decent, safe, and sanitary. Ensure program is being administered in compliance with federal regulations, federal guidelines, the Carlsbad Administrative Plan, and the Public Housing Agency (PHA) Plan. Achieve and maintain a lease rate that effectively utilizes funding allocation. Designed to enable unemployed, under-employed or under-educated low-income families to achieve economic independence from welfare. Assist families in identifying barriers to becoming self-sufficient. Provide guidance to the family to establish a five-year goal and plan. Coordinate needed support services and act as an advocate on behalf of the client. PERFORMANCENVORKLOAD MEASURES: Maintain a Section Eight Management Assessment Program (SEMAP) ranking of “standard performer“ or “high performer.” Achieve and maintain a lease rate utilizing 95% of allocated funds. Update and revise Administrative Plan to adopt changes in federal regulations. Expand rental assistance knowledge by conducting community workshops, providing owner and participant newsletters, and conducting owner outreach presentations. SIGN IF ICANT CHANGES : None. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2003-152 Exhibit 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY APPROPRIATION LIMIT AS REQUIRED BY ARTICLE XlllB OF THE CALIFORNIA STATE CONSTITUTION AND STATE LAW OF CARLSBAD, CALIFORNIA, ESTABLISHING THE 2003-04 WHEREAS, Article XlllB of the California State Constitution requires that governments annually establish a limit on the appropriation of proceeds of taxes; and WHEREAS, State law requires that this limit be presented to the governing body of each entity each fiscal year; and WHEREAS, State law also requires that this limit be published in a newspaper of general circulation to allow public response to the limit as adopted. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the City Council of the City of Carlsbad, California, does hereby establish and adopt the 2003-04 appropriation limit of one hundred thirty-four million, six hundred ninety- three thousand, four hundred eighty-three dollars ($1 34,693,483) as computed in Exhibit A attached hereto. 2. That the City Clerk is directed to publish this Resolution in a newspaper of general circulation. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the 17th day of JUNE , 2003, by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, NOES: None ABSENT: None ATTEST: + LORRAINE M. (SEAL) Exhibit A CITY OF CARLSBAD GANN APPROPRIATIONS LIMIT The Appropriations Limitation imposed by Proposition 4 and modified by Proposition 11 1 creates a restriction on the amount of revenue which can be appropriated in any fiscal year. The revenues which are subject to the Limitation are those considered "proceeds of taxes." The basis for calculating the Limit began in fiscal year 1978-79 and is increased based on population growth and inflation. The major change made by Proposition 111 allows the City to annually choose among the following options for calculating its Gann Limit: > 9 > > Population growth of Carlsbad, OR Population growth within San Diego County, AND Growth in California per capita income, OR Growth in non-residential assessed valuation due to new construction in the City. The factors used to calculate the 2003-04 Limit were: > > Population growth in Carlsbad, AND Growth in non-residential new construction ! The formula is outlined below: 2002-03 Expenditure Limit (Revised) $127,905,654 % Carlsbad Population Growth Growth in California per capita income Net Increase Factor 2003-04 Limit (2002-03 Limit X Factor) Current Appropriation of Proceeds of Taxes (Subject to the Limit) 1.0293 X 1.0231 1.0531 $1 34,693.483 $83,549,747 The spending limit for the City of Carlsbad for 2003-04 is $134.7 million, with appropriations of "proceeds of taxes" of $83.5 million. The result of the calculation provides the City with an operating margin of $51.1 million. 1 2 3 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Exhibit 8 2003-153 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING CHANGES TO THE MASTER FEE SCHEDULE WHEREAS, the City Council of the City of Carlsbad has the authority to establish fees for City services; and WHEREAS, from time-to-time said fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for City services; and + WHEREAS, the City Council has determined the cost of providing general and development-related services; and WHEREAS, the City Council finds it necessary to recover the costs for City services; and WHEREAS, the City Council has held the necessary public hearing and allowed for public comment on the establishment of said fees. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the changes to the Master Fee Schedule for the fees shown in Exhibit A, attached hereto, are hereby adopted. 2. That all other generak City fees and development-related fees as shown in Resolution 2001-178, except as specifically amended, shall remain in full force and effect. Ill Ill Ill Ill Ill Ill Ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Exhibit 8 Page 2 of Resolution # 2003-153 3. This resolution shall become effective on August 1, 2003 for General City fees and September 1, 2003 for the Development-related fees. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 17th day of JUNE , 2003 by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard NOES: None ABSENT: None ATTEST: Exhibit A CITY OF CARLSBAD PROPOSED REVISIONS TO THE MASTER FEE SCHEDULES JUNE 2003 FOR INFORMATIONAL PURPOSES ONLY These fees are increased annually based upon an index as stated in the resolutions or ordinances establishing the fees. Current Revised Chanqe Affordable housing credit $41,200 $43,000 $1,800 License Tax on New Construction-mobile homes No change. Traffic Impact Current Revised Chanqe Traffic Impact Fee - Residnt'l Cost Per Trip (Out of CFD) $96 $98 2 Traffic Impact Fee - Cornrnrc'lllndust Cost Per Trip (Out of CFD) 39 40 1 Traffic Impact Fee - Residnt'l Cost Per Trip (Inside CFD) , 63 64 I 1 Traffic Impact Fee - Cornrnrc'lllndust Cost Per Trip (Inside CFD) 25 26 I IPlanned Local Drainage Area Fees No chanae. I Sewer Connection Fees Current Revised Chanqe General Capacity Fee All Areas $2,060 $2,098 . $38 1 Plus Sewer Benefit Fees shown below I Sewer Benefit Area Fees Current Revised Chanqe Area C 1,615 1,645 30 Area D 1,618 1,648 30 Area E Area F 44 441 2,386 2,430 2,399 2,443 Bridge & Thoroughfare District #2 Fees Current Revised Change Zone 5 $296 $301 $5 Zone 20 615 626 11 Zone 21 319 325 6 I 1 Bridge & Thoroughfare District #3 Fees Current Revised Chanael ~~ ~ I Fee per ADT $135 $138 $4 Agricultural Mitigation Fees Current Revised Change $8,053 $8,858 $805 Exhibit A (cont.) 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) $ % Current ProDosed Chanae Chanae $50.00 $65.00 $15.00 30% $10.00 $12.00 $2.00 20% Water District Cost of Delivery Charge (per month) Fire Protection Meters $20.80 Delete (') 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 LosVDarnaged 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 $0.10 $0.25 $0.15 150% $0.05 $0.10 $0.05 100% $1 .oo $2.00 $1.00 100% $1 .oo $2.00 $1.00 100% List price + $40 if out of print variable up to list price .50 FEE .50 FINE (*I List price various $60.00 $109.00 $49.00 82% $78.00 $135.00 $57.00 73% $101.00 $174.00 $73.00 72% $1 25.00 $213.00 $88.00 70% $165.00 $264.00 $99.00 60% new $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 A (cant.) RECOMMENDER CHANGES TO THE CITY FEE SCHEDULE - June 2003 Aquatics Fees Current Recommended $ % 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 Adulneen - Learn To Swim - R Adultrreen - Learn To Swim - NR Parenthnfant thru PSA Ill - R Parenthfant thru PSA 111 - NR Adapted Aquatics - R Adapted Aquatics - NR Ind. lnstr - Basic - R per hour Ind. lnstr - Basic - NR Ind. lnstr - Advanced - R per hour lnd. 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 Comrnercial/Corp./lane/hour Community/Non-Profit/lane/hr. UA - C.U.S.D. /lane/hour UA - N.C.A. - /lane/hour Staff Costs - Per houdguard. Electricity - per hour Gas - per hour Fee ($1 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 Fee ($1 Change Change 3.00 4.00 35.00 50.00 45.00 70.00 60.00 90.00 90.00 1 10.00 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 20.00 Delete Delete , 5.00 1 .oo 1 .oo 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 50% 33% 75% 67% 50% 75% 43% 73% 80% 83% 60% 71 % 48% 62% 48% 62% 60% 71 % 60% 48% 62% 48% 62% 14% 33% 14% 33% 14% 43% 108% 108% 25% 71 % Exhibit A (co.nt.) RECOMMENDED CHANGES TO THE CITY FEE SCHEDULE -June 2003 Senior Center Facilitv Fees Staffing fee Staffing fee current $ 13 per hour proposed $ 15 per hour Cancellation Processing fee current $ 10 Cancellation Processing fee proposed $ 25 Cleaning deposit Cleaning deposit Auditorium Auditorium Dining room Dining room current $ 150 proposed $ 200 Categories A 6 C D E F G current N/C N/C 30 40 50 65 80 proposed N/C N/C 30 40 55 70 85 current N/C N/C 30 40 50 65 80 proposed N/C N/C 30 40 55 70 85 Kitchen Use (Full Service Prep) current N/C N/C 15 20 25 30 35 Kitchen Use (Full Service Prep) proposed N/C N/C 15 20 30 35 40 Carrillo Ranch Facilitv Fees Categories Daily Rental Fees: A 6 C D E F Cabana & Pool Area New N/C 500 600 700 850 1000 Patio Area New N/C 200 300 400 500 600 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 Facilitv fees Room Attendant, AV Tech current $ 17 per hour Room Attendant, AV Tech proposed $ 20 perhour Cancellation Processing fee New $ 25 Categories A 6 C D E F Gowland Meeting Room (per 4 hrs) current N/C N/C N/C 20 30 40 Gowland Meeting Room (per 1 hr) proposed N/C N/C N/C ' 20 30 40 Schulman Auditorium (per 4 hrs) current N/C N/C N/C 25 75 100 Schulman Auditorium (per 1 hr) proposed N/C N/C N/C 25 50 55 Conference Room (per 4 hrs) current N/C N/C N/C 15 25 35 Community Room (Cole Library)per hr proposed N/C N/C N/C 20 30 40 Exhibit A (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. Carlsbad Senior Center activities. B. 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 C. 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 D. Carlsbad resident (70% membership Carlsbad residents) non-profit organizations (paid management): civic and social organizations. EXAMPLES: Carlsbad Boy’s & Girl’s Club E. 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 F. Resident commercial, business, and profit-making organizations: non- resident private party activities. EXAMPLES: Carlsbad Inn, non-resident weddings or receptions G. Non-resident commercial, business, political, profit making, and religious organizations. EXAMPLES: Trade shows, company training, meetings, and seminars 1 of 1 Exhibit A (cant.) 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-PROFT USER, THE ORGANIZATIOP ALL OF THE FOLLOWING CRITERIA: MUST IEET 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. PROPOSED CITY OF CARLSBAD JUNE 2003 REVISIONS TO THE MASTER -. ,. FEE Exhibit A (cant-) SCHEDULES FOR INFORMATIONAL PURPOSES ONLY These fees are increased annually based upon an index as stated in the resolutions or ordinances establishing the fees. Current Revised Chanae Affordable housing credit $41,200 $4,000 $1,800 License Tax on New Construction-mobile homes No change. Traffic Impact Current Revised Chanae Traffic Impact Fee - Residnt'l Cost Per Trip (Out of CFD) $96 $98 2 Traffic Impact Fee - Commrc'Vlndust Cost Per Trip (Out of CFD) 39 40 1 Traffic Impact Fee - Residnt'l Cost Per Trip (Inside CFD) 63 64 1 Traffic Impact Fee - Commrc'Vlndust Cost Per Trip (Inside CFD) 25 26 1 IPlanned Local Drainage Area Fees No change. I Sewer Connection Fees Current Revised Chanae General Capacity Fee All Areas $2,060 $2,098 $38 Plus Sewer Benefit Fees shown below Sewer Benefit Area Fees Current. Revised Chanae Area C 1,615 1,645 30 Area D 1.61 8 1,648 30 Area E 2,386 2.430 44 Area F 2,399 2,443 44 ]Bridge & Thoroughfare District #2 Fees Current Revised Change1 Zone 5 Zone 20 11 $296 $301 61 5 626 I Zone 21 31 9 325 IBridne & Thoroughfare District #3 Fees Current Revised Change1 I ~~~ ~ Fee oer ADT I Agricultural Mitigation Fees Current Revised Change1 I $8,053 $8,858 $8051 PROOF OF PUBLICATION (2010 & 2011 C.C.P.) STATE OF CALIFORNIA County of San Diego I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above-entitled matter. I am the principal clerk of the printer of North County Times Formerly known as the Blade-Citizen and The Times-Advocate and which newspapers have been adjudicated newspapers of general circulation by the Superior Court of the County of San Diego, State of California, for the County of San Diego, that the notice of which the annexed is a printed copy (set in type not smaller than nonpariel), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: MAY 31,2003 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at SAN MARCOS, California This 3RD day of JUNE, 2003 This space is for the County Clerk’s Filing Stamp L- 10-03 Proof of Publication of Interested parties are invited to attend this meet in and present their views and comments to thc cify council. Conies of the budget and Dromsed fee chanees Dove-Lane, Carlsbad. Written and telephone in ulries ma be directec to Lisa Hildabrand of theknance J% artment, 1635 Faraday Avenue, Carlsbad; 6082430. PUBLISH: SATURDAY, MAY 3 1,2003 I i \ Signature NORTH COUNTY TIMES Legal Advertising NOTICE OF PUBLIC HEARING CITY OF CARLSBAD The City of Carlsbad will hold a public hearing on Tuesday, June 17, 2003 at 6:OO p.m. in the Council Chambers of City Hall, 1200 Carlsbad Village Drive, Carlsbad, California, to discuss the 2003-04 Operating Budget and the 2003-04 to Buildout Capital Improvement Program Budget. This budget includes an appropriation of the 2002-03 AB 3229 funds in the amount of $174,795 to be used to fund the police year round bicycle patrol program. Also included will be discussion on the Carlsbad Municipal Water District Operating and Capital Improvement Program Budgets as well as discussion on behalf of the Housing and Redevelopment Board regarding the Redevelopment Budgets. The City Council will also discuss selected City development fees and general fees and the Appropriation Limitation for fiscal year 2003-04. Interested parties are invited to attend this meeting and present their views and comments to the City Council. Copies of the budget and proposed fee changes are available for public inspection at the City Clerk’s Office, 1200 Carlsbad Village Drive, or the two libraries: Cole Library, 1250 Carlsbad Village Drive, Carlsbad; and Dove Library, 1775 Dove Lane, Carlsbad. Written and telephone inquiries may be directed to Lisa Hildabrand of the Finance Department, 1635 Faraday Avenue, Carlsbad; 602-2430. PUBLISH: SATURDAY, MAY 31,2003