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HomeMy WebLinkAbout2004-06-22; City Council; 17671; 2004-05 Operating and CIP BudgetsAB# 17,671 ADOPTION OF THE 2004-05 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGETS AND REVISION OF FEES AND MTG. 0611 5/04 DEPT. FIN CHARGES FOR SERVICES RECOMMENDED ACTION: DEPT. HD- f 1. Hold a public hearing on the City of Carlsbad’s, Carlsbad Municipal Water District’s, and Housing and Redevelopment Commission’s 2004-05 Operating Budget, and 2004-05 to Buildout Capital Improvement Program. 2. Adopt Resolutions No. 2004-i95 , 1215 , and 384 , adopting the final Operating Budgets for 2004-05, and appropriating funds for the 2004-05 Capital Improvement Program. (Subject to any actions taken tonight.) 3. Adopt Resolution No. 2004-196 , adopting the Gann spending limit for the City of Carlsbad for 2004-05. 4. Adopt Resolution No. 2004-197 , adopting changes to the Master Fee schedule. ITEM EXPLANATION: The proposed 2004-05 Budget totals $200.1 million, of which $147.6 million is the Operating Budget and $52.5 million is the Capital Improvement Budget. Operating revenues total $154.2 million and Capital revenues total $51.9 million, for a total of $206.1 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. Operatinn Budnet The proposed Operating Budget for 2004-05 totals $147.6 million, an increase of $4.9 million from the 2003-04 adopted budget. Operating revenues are estimated at $154.2 million, which is a $1.1 million increase over the current year projections. General Fund General fund revenues for 2004-05 are estimated at $96.1 million, slightly higher than the current year projections. General fund revenues are expected to grow by 5.4% for the 2004-05 fiscal year with most of the increase coming from the tax revenues. Property taxes, the City’s largest single revenue source, are projected to grow to $28.1 million, a 5.1 YO increase over the past year. The growth would have been 12% if not for an anticipated $1.8 million payment to the state of California. The payment is expected to be required by the State in order to balance its budget. Property taxes for fiscal year 2004-05 are based on property values as of January 1, 2004. Sales taxes are expected to total $26.4 million for 2004-05, an increase of 5.3% over the 2003-04 projections. These revenues would have grown by 7% if not for the effect of recent actions taken by the state of California. These two revenues make up over 50% of the PAGE 2 OF AGENDA BILL NO. 17,671 General fund revenues. More information on the effect of the State’s budget deficit on the City of Carlsbad’s revenues can be found in the attached Operating Budget Overview. Due to uncertainties surrounding the State’s budget deficits and the slow recovery of the economy, the City’s budget policies emphasized “Managing Resources Effectively”. The goal was to preserve the quality and level of City 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 ongoing projects include new facilities such as Aviara Park and Hidden Canyon Park, 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. The proposed budget does not add any new full-time positions and lowers the total hourly full time equivalents by .34 of a position. In addition, $521,000 of capital outlay requests has been included in the proposed General fund budget. The Operating Budget also includes a $3.8 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 approximately 2.5% of budget requests. This account is available to the City Council to address unanticipated emergencies or unforeseen program needs. Capital Improvement Pronram The 2004-05 to Buildout Capital Improvement Program (CIP) outlines approximately 159 future projects at a total cost of $466.5 million. Appropriations scheduled for 2004-05 total $52.5 million and will be added to approximately $1 06.3 million for ongoing capital projects that remain unspent at the end of fiscal year 2003-04, for a total appropriation of $158.8 million. Revenues for the CIP are projected at $51.9 million. Park projects programmed for funding in the upcoming year include the Carlsbad Municipal Golf Course, Pine Community Park, and Alga Norte Park and Aquatic Complex. Funding is provided for the relocation of Fire Station No. 6, planning of trails at Lake Calavera, installation of synthetic turf at Stagecoach Park, and construction of the Coastal Rail Trail. Other projects include the expansion of the Encina Wastewater Treatment Plant and construction of the Vista Carlsbad and North Agua Hedionda sewer interceptors. Water projects receiving appropriations include the Palomar Airport Road/El Camino Real pump and the replacement of 3000 feet of water pipeline in San Marcos Boulevard towards the west from Rancho Santa Fe Road. Street projects receiving appropriations in 2004-05 include the widening of El Camino Real from Tamarack to Chestnut and north of Cougar. In addition, next year’s Capital Improvement Program includes $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 2004-05 is $142.5 million, with appropriations of “proceeds of taxes” of $77.5 million. PAGE 3 OF AGENDA BILL NO. 17,671 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. The revisions to these fees are shown in Exhibit 3. ENVIRONMENTAL REVIEW: In accordance with Government Code, all projects that receive appropriation of funds for fiscal year 2004-05 received a finding of General Plan Consistency by the Planning Commission at their meeting on May 5, 2004. FISCAL IMPACT: The fiscal impact of the proposed budgets is detailed in the attached schedules. EXHIBITS: 1. 2. 3. 4. 5. 6. 7. a. 2004-05 Preliminary Operating Budget overview. 2004-05 Preliminary Capital Improvement Program overview. Recommended changes to City Master Fee Schedule - June 2004 (Master Fee Schedules on file with City Clerk). Resolution No. 2004-195 of the City Council of the City of Carlsbad, California, adopting the Final Operating Budget and Capital Improvement Program for fiscal year 2004-05 for the City of Carlsbad and establishing controls on changes in appropriations for the various funds. Resolution No. 1215 of the Board of Directors of the Carlsbad Municipal Water District, California, adopting the water district final Operating Budget and Capital Improvement Program for 2004-05. Resolution No. 384 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 2004-05. Resolution No. 2004-196 of the City Council of the City of Carlsbad, California, establishing the 2004-05 appropriation limit as required by Article XlllB of the California State Constitution and State law. Resolution No. 2004-197 of the City Council of the City of Carlsbad, California, adopting changes to the Master Fee Schedule. The Preliminary Operating Budget and Capital Improvement Program 2004-05 is on file with the City Clerk. The Technical Appendix is available for review in the Finance and Engineering Departments. DEPARTMENT CONTACT: Cheryl Gerhardt; 760-602-2430; cqerhfl3ci.carlsbad.ca.w 3 CITY OF CARLSBAD 2004-05 PRELIMINARY BUDGET Exhibit 1 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 0 Sewer system 0 Recreation programming for all ages 0 Solid waste services 0 Park lands Housing programs 0 School programs School programs and facilities are provided by four different school districts located within the City boundaries. Although the City Council has no direct control over these school districts, the Council recognizes the importance of quality school facilities and programs to Carlsbad’s residents. The Council has worked closely with the schools in the past, and staff continues to meet with them on a regular basis. BUDGET PROCESS The budget process for the City of Carlsbad begins in January each year, with a review and update of the City Council’s five-year vision statements. These statements are shown earlier in this document. Through the vision statements, Council defines and clarifies their vision of Carlsbad. The strategic goals for the City are developed next. The goals further define the methods used to achieve the vision and call out areas in which Council would like to place special emphasis during the year. Once these are developed, staff develops operational Citv of Carlsbad 2004-05 Strategic Goals Top-Quality Services - Be a city that provides exceptional services on a daily basis. Transportation/Circulation - Provide and support a safe and efficient transportation system that moves people, services, and goods throughout Carlsbad. Balanced Community Developnient - Be a city that connects community, place, and spirit and economically sustainable land uses. Parks/Open Spaceflrails - Acquire, develop, and maintain a broad range of open space and recreational facilities that actively address citizen needs, which are fiscally responsible, and are consistent with the General Plan and Growth Management Standards. Water - Ensure, in the most cost-effective manner, water quality and reliability to the maximum extent practical, to deliver high quality potable and reclaimed water incorporating drought-resistant community principles. Environmental Managentent - Be an environmentally sensitive community by focusing on: conservation, storm water, sewage collection and treatment, solid waste, and cost effective and efficient use of energy including alternative energy sources. Fitiancial Health - Pursue and implement proactive strategies that support sustainable economic health and manage fiscal resources effectively. Cornmunicatiori - Ensure that community members, Council and staff are well informed, continuing to be a more responsive government and a high level of citizen confidence in its government Learning, Culture & Arts - Promote and support continuous learning, cultural opportunities and the arts within the community and the City organization. citizen COn~ieCtiOll- Be a city that embraces Community connectivity through the effective use of technological and interpersonal mediums. 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 Exhibit 1 the City. Thus, it is an integral part of making Carlsbad a wonderful community in which to live, work, and play. ECONOMIC PROFILE The economy over the past few months has been moving in a positive direction signaling the return of economic growth as well as job growth in the nation and California. According to advance estimates released by the Bureau of Economic Analysis, real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.2 percent in the first quarter of 2004. In the fourth quarter, real GDP increased 4.1 percent. Change in Real 6DP 'II II Ill IV I II Ill IV I II 111 IV 2ooo 2001 m I II 111 IV I mM04 ... .. The major contributors to the increase in real GDP in the first quarter were personal consumption expenditures, equipment and software, government spending, exports, and private inventory investment. Investors also seem to be feeling more positive about the future economy, despite the difficult situation in Iraq and the recent spike in oil prices. The Federal Reserve's statement, issued May 4, was believed to be pointing towards higher interest rates in the future. Since the Fed usually only raises rates in a strong economy with sound fundamentals, it was another indicator that the economy is on solid footing. There has also been positive economic performance from California's economy. Personal income growth has picked up, growing 4.5% ahead of the previous year as of the end of the 4'h quarter of 2003. Taxable sales have also improved with six consecutive quarters of year over year growth according to the State department of Finance. Job growth was the one lagging area in California and recent data suggests that it may be turning around, as well. According to the Economic Development Department, payroll employment grew by 16,300 jobs from March to April 2004. This is the second consecutive month that payroll employment has reached an all-time record high. The unemployment rate was 6.2%, down from 6.6% in March and 6.8% a year ago. All of these set the stage for a growing California economy; however, most economists caution that the growth will not be robust and there are still some uncertainties for the future. In an overview of the state's economy, UCLA Anderson Forecast Senior Economist Joseph Hurd states, "California's economy is moving up and out of the trough of recession. We have seen job growth for a few months - taxable sales are stronger and housing continues to be strong, both in sales and construction.'' Dr. Hurd cautions that the economy still must confront state budget cuts that will reduce public sector jobs by 25,000 over the next 15 months, surging gasoline prices and a weak dollar, which make imports more expensive, and high household debt, which will limit new purchases of cars and other durables for the foreseeable future. 5 Exhibit 1 As Dr. Hurd noted, the financial woes of the California government may continue to hold back the growth of the California economy. The economic recovery and the actions taken under Governor Schwarzenegger have helped to improve the near term outlook for the state as evidenced by Moody’s upgraded credit rating for the State in May 2004. However, according to the Legislative Analyst’s Office (LAO), the State is still facing significant deficits in future years. The LAO’S report states that while the Governor’s plan would balance the budget in 2004-05, a $6 billion shortfall reappears in 2005-06, growing to over $6.5 billion in 2006-07 and beyond. The ongoing budget shortfalls result from the hinh reliance in the near term on one-time LAO Forecast for State of California Large Operating Sfiortfalls to Persist Under May Revision8 savings and loans that will need to be repaid in the future. It is the LAO’S opinion that the State will not be able to simply “grow its way” out of the current deficit situation. The outlook for California in the latter half of 2004, according to the State Finance Department, is for job growth to hit an annualized rate of .8%, with the low rate attributable to the late improvement in the labor markets, and personal income growth to rise by 5.4%. For 2005, they are predicting further improvements with job growth showing a 2.1% increase and personal income up by 5.6%. Locally, the San Diego economy has fared better than either the nation or the State. The region added 5,100 jobs last month, nearly a third of the jobs growth statewide. Due to it’s diversified economy, San Diego never really felt the jobs loss experienced in other areas of the State. San Diego County’s unemployment rate declined from 4.2% in March to 3.9% in April, compared to a 5.4% rate nationally and 6. I % in California. The continuing job growth in San Diego is reflected in growing consumer confidence in the region. Last month, confidence rose by 3.2%, according to a monthly survey by The San Diego Union-Tribune, “Consumers are more optimistic about current circumstances than they have been in nearly two years, although there is continuing pessimism about what the economy will be like six months down the road.” Carlsbad’s economy is tied closely to that of the San Diego region. General improvement has been seen in the past year in almost all areas. Total sales taxes in the City for the last calendar year grew 6.7%, with the general retail and transportation segments both increasing by almost 10%. Transient Occupancy Taxes, the City’s gauge of the tourism industry, are up 4% for the fiscal year through April. Carlsbad’s residential real estate market has continued strong throughout the year. The City expects to issue 1,198 residential permits this year, slightly higher than the 834 in the previous year. The impediment to higher development is mainly due to the lack of supply rather than a lack of demand. However, there are a number of new residential communities in the final phases of development, which will add significantly to the residential housing stock in Carlsbad. These include the Calavera Hills project in northeast Carlsbad, with 331 single-family homes and 358 multi-family units planned; the Villages of La Costa projects known as the Oaks, the Greens and the Ridge which will add approximately 1,700 single-family and 550 multi-family units and the Bressi Ranch area with 523 single-family and 100 multi-family units to be Exhibit 1 developed. The completion of these master planned communities will signal the end to the large-scale residential developments in Carlsbad. Median SFD Home Prices in Carlsbad (in Oook) I $600 $500 $400 $300 $200 $100 $- 1999 2000 2001 2002 2003 With supply relatively low, housing prices have continued to escalate. The median price for single-family homes in Carlsbad averaged $561,000 for calendar year 2003, a 17% increase from the previous year. Total assessed values in the City stand at over $14 billion, double what they were just five years ago. With the new developments mentioned earlier starting to sell this year, the City has projected it will add about 3,700 more residential units and an additional 5.9 million square feet of commercial/industriaI development over the next five years. The City’s residential housing stock is about 85% built out, with approximately 6,800 housing units remaining to develop. Commercial and industrial development has been sluggish in the past few years, adding well under a million square feet per year. This is expected to pick up over the next five years to average over 1.1 million square feet per year. Some of the major businesses in town include the Gemological Institute of America, ViaSat, Invitrogen, Callaway, Taylor Made, Upper Deck, and many others. Commercial development has brought much needed entertainment and shopping venues to citizens and visitors alike, as well as generating additional sales taxes to help pay for City services. Carlsbad is home to Car Country Carlsbad - an auto mall; the Carlsbad Company Stores - a specialty outlet center; Plaza Camino Real - a regional shopping mall; a Costco center; and the most recent addition; the Forum at Carlsbad - a commercial center with retail shops, restaurants and other commercial uses. Development has also enhanced Carlsbad’s reputation as a d.estination resort for tourism. The City is host to a major family theme park: Legoland, and has two luxury resorts available for its visitors: the Four Seasons Resort at Aviara and the La Costa Resort & Spa. There are also a number of other quality hotels and motels in the City with the most recent additions being the Inns of America, which opened in December 2001, and the Extended Stay America, which opened in fall 2002. This brings the total available hotel rooms in the City to about 3,500. It is the Council’s goal to ensure that the City remains in good financial health, and there are a number of steps the City has taken to attain that goal. One of these is the Growth Management Plan. This plan was adopted by the citizens to ensure that all necessary public facilities were constructed along with development. It also ensures that a financing plan is in place to pay for the facilities prior to the development of the property. In addition to the Growth Management Plan, the City also prepares a long-term financial model for both the capital and operating needs of the City. With a growing city such as Carlsbad, it is imperative that we plan for the impacts of serving new development and operating new public facilities, as well as planning for the capital needed to build them. Thus, the City prepares a ten- year operating forecast for the General fund, and a 20+ year Capital Improvement Program. As part of the Capital Improvement Program, the City annually calculates the amounts needed to 7 Exhibit 1 pay for the various projects and calculates the anticipated operating budget impacts. In this way, we can anticipate the effects of development from both a capital and an operating perspective. One of the newer initiatives the City has undertaken to ensure its financial health is the development of an Infrastructure Replacement fund. With this fund, the City has begun to set aside money on an annual basis for major maintenance and replacement of its infrastructure. Much of the City’s infrastructure is relatively new; thus, the City has not felt the full impact of maintenance. By setting aside funds now, the citizens of Carlsbad can be assured that the DroDer maintenance and redacement, when needed, will be performed on streets, parks, and many facilities for which the’City is responsible. General Fund Revenues 100,000 n I 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 03 04e mRopertyTax mSalesTax 0 Tra-sient Occ Tax OVehclebcFees DFrxhseTaxes .All Others Despite the slow recovery underway, Carlsbad’s current economic position is an enviable one. A relatively healthy local economy over the past five years provided additional revenue-generating sites that allow the City to continue to provide services despite the sluggishness of the recent economy. The Carlsbad Company Stores, opened in late 1997, has continued to expand and now contributes over $1.3 million annually to the City’s sales tax receipts. The City’s Auto Mall generates over $6 million per year in sales taxes for the City. Legoland, a family theme park, contributes to the City’s sales tax base as well as stimulating the development of new hotels in the area. The effect of the new development and the demand for housing in Carlsbad is an increasing tax base. The five major revenue sources for the City: property taxes, sales taxes, transient occupancy taxes (TOT), franchise taxes, and vehicle license fees, are expected to provide $75.4 million, or 77%’ of the City’s General fund revenues in 2005. 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 2004-05, the City’s revenue projections reflect increasing consumer confidence with growth in base sales taxes at about 5.5%. Housing prices are expected to level out, with the expected rise in interest rates, especially in the higher-end homes. Development is predicted to increase as new housing developments come on line in the next year. And finally, tourism is expected to continue to recover over the year, with TOT receipts finally reaching 2001’s level by the end of 2005. More information on all of the City’s revenues and programs can be found in the later sections of this document. The most significant area of risk in the forecast for Carlsbad is in the impact on the City from the state of California’s budget deficit. The State’s budget for fiscal year 2004 took approximately $1.5 million from the City’s General fund with the promise to pay the majority of it back in the future. In the early part of the 199O’s, the State also overspent their budget resulting in a permanent loss of over $2.5 million from Carlsbad’s General fund in the form of a reallocation of property taxes. So the precedent of the State taking local revenues on a permanent basis to solve it‘s fiscal problems has been set and thus, threatens the stability of the City’s finances. 8 Exhibit 1 In addition, a ballot measure in November authorized what is known as the “Triple Flip”. This is a complicated method of securing payment for the Deficit Reduction Bonds, which the State is planning on issuing this year. It essentially results in the temporary swap of a % cent of the cities’ sales tax in return for property tax. It should have no effect on the amount of tax revenues the cities receive but it will result in the loss of some interest earnings due to the delay in the timing of the receipt of the taxes. The Governor’s May Revision of the 2004-05 budget reflects an agreement worked out between the Governor and a group of city, county and special district representatives. The package is to be put on the November ballot as a constitutional amendment. The main provisions include: Permanently reducing the vehicle license fee rate to its current .65% and provide property taxes to cities and counties to offset the loss on a dollar for dollar basis. Cities, counties and special districts are to make a contribution to the State totaling $1.3 billion in both the ‘05 and ‘06 fiscal years. Guarantees repayment of the of VLF amounts taken by the State this year in fiscal year ‘07. Guarantees that the “Triple Flip” will be reversed when the bonds are repaid. Provides for mandate relief if the State does not pay the mandated costs. Secures the Governor’s commitment to campaign for voter approval of the measure. If this constitutional amendment passes as proposed, it means that the City of Carlsbad will lose $1.8 million from the General fund, $220,000 from its Redevelopment Agency and up to $750,000 from the Water Enterprise in each of the next 2 years. In exchange for this 2-year “contribution” to the State, the cities will gain protection from further raids on their revenues by the State. As it is likely that some similar loss will be adopted in the final State budget, Carlsbad’s estimated revenues have been adjusted downward to reflect the terms of the proposed agreement. While it would be preferable for the State to balance its budget without impacting local government, if the State can limit the effects to those indicated in the proposed agreement and if the promised revenue protections are achieved, the impact on Carlsbad will be manageable. 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 quite a few City facilities - mainly parks - planned 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. 9 Exhibit 1 This forecast assumes that revenue growth will pick up at a moderate pace in 2005 and continue into the future. It does assume that the agreement with the Governor is approved; thus, reflecting decreased property taxes in fiscal year ‘05 and ‘06 and then full revenue receipts after that time. General Fund $160 -- $140 -- $120 -- Ill 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 I - Revenues +Projected Budget I I’ I To project the expenditures, it includes all known personnel costs, most of 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, slowing to 5% in the future. It also assumes personnel growth (new positions) to remain rather flat at no more than 2% per year. And finally, it includes estimated operating costs for all capital projects in the timeframes shown in the CIP. The results show that the General fund would operate at a surplus until 2008, at which time the forecast goes into a slight deficit and the deficit continues to grow to a maximum of 4% of the budget by 2014. 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. One of the more significant changes resulting in expenditure growth in the later years is the projected loss of Transnet revenues, which are used for street maintenance. Transnet is a % cent additional sales tax collected countywide and used to improve the transportation systems. The current authorization for the sales tax will end in 2008. SANDAG, the San Diego Association of Governments, is placing a measure on the November ballot to reauthorize the sales tax for another 40 years. If the measure passes, the deficits in the future years will be reduced. 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. The General fund forecast is a tool available to the City for managing its fiscal resources effectively and monitoring the achievement of sustainable economic health for the City of Carlsbad. Exhibit 1 PROJECTED ESTIMATED FUND 2003-04 2004-05 GENERAL FUND $ 91.2 $ 96.1 SPECIAL REVENUE 12.2 9.7 ENTERPRISE 32.5 32.8 INTERNAL SERVICE 13.9 11.9 REDEVELOPMENT 3.3 3.7 TOTAL $ 153.1 $ 154.2 2004-05 PRELIMINARY OPERATING BUDGET OVERVIEW $ % CHANGE CHANGE $ 4.9 5.4% (2.5) (20.5%) 0.3 0.9% (2.0) (14.4%) 0.4 12.1% $ 1 .I 0.7% The preliminary Operating budget for fiscal year 2004-05 totals $1 47.6 million, with revenues for the year estimated at $154.2 million. General fund revenues are estimated at $96.1 million and budgeted expenditures are $90.5 million. I FUND PROPERTY TAX SALES TAX TRANSIENT OCC. TAX FRANCHISE TAXES VEHICLE LICENSE FEES DEVELOPMENT REVENUES ALL OTHER REVENUE TOTAL REVENUE $ CHANGE $ 1.3 1.3 0.4 (0.3) 1.1 0.9 (0.0) $ 4.9 The following table shows the total operating revenues the City anticipates receiving for 2003-04, as well as those estimated for 2004-05. % CHANGE 5.1% 5.3% 4.8% (6.7%) 25.4 17.3% (0.0%) 5.4% Revenue estimates for the Operating budget indicate that the City will receive a total of $1 54.2 million, slightly higher than the current year projections. Increases in General fund revenues, mainly property and sales taxes, offset the declines in the other funds. The decline of $2.5 million in the Special Revenue funds is due to one-time revenue received in 2003-04 in the Housing Trust fund for interest and shared appreciation received on loan repayments. The decline of $2 million in the Internal Service funds is due to a $2.5 million transfer in 2003-04 in the Workers Compensation fund and the elimination of the Records Management fund. 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 I SIGNIFICANT GENERAL FUND REVENUES Iln Million PROJECTED $ 26.8 25.1 8.8 5.0 4.0 5.2 16.3 2003-04 $ 91.2 1 ESTIMATED $ 28.1 26.4 9.2 4.7 5.3 6.1 16.3 2004-05 $ 96.1 Exhibit 1 This year it is expected that property taxes will grow to almost $30 million in fiscal year 2005, a 12% increase over the past year. However, the City will only receive $28.1 million of that due to the reductions proposed in the State of California's budget mentioned earlier in this letter. The State reduction brings the growth down to 5% for the 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 2004-05 are based on values as of January 1,2004. 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. 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 unless there is Property and Sales Tax Growth I"lhorn."U* a significant amount of housing activity. In more recent years, we have seen robust growth in property taxes due to new developments, a large number of resales within the City spurring revaluation of the parcels and double-digit growth in housing prices. Sales taxes are expected to total $26.4 million for 2004-05, an increase of 5.3% over the 2003- 04 projections. These projections assume a base increase of 5.5% ~lus additional amounts for Sales Taxes by Category II corts-n Msc new retail sites locating to the City. The increase would have been closer to 7% if not for the impact of the State's budget on the revenues. As mentioned earlier in this letter, the "Triple Flip" is essentially a temporary swap of a '% cent of the cities' sales taxes in return for property tax. The revenue estimates continue to show this amount as sales tax since the amount is reflective of the amount of sales tax the City would have received. It should have no effect on the ultimate amount of tax revenues the cities receives but it will result in a delay in the timing of the receipt of the taxes. Because of this delay between years, sales tax receipts for FY05 may be lower by about $500,000. The details of how the swap will work are still being discussed and actual receipts may differ. One of the most significant new sites in Carlsbad is a retail center in the southernmost part of the City. This center includes approximately 190,000 square feet of retail space as well as restaurants and other commercial uses. The center opened in late 2003 with new tenants continuing to move in. Exhibit 1 As can be seen in the accompanying chart, the City’s sales tax base is heavily weighted in the transportation (predominantly new car sales) and retail sectors. These two sectors make up 70% of the City’s sales tax base. Sales tax estimates also include approximately $700,000 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 $9.2 million for 2004-05, an increase of 4.8% over 2003-04 estimates. TOT Transient Occupancy Taxes $8.000 $6,000 $4,000 $2.000 01 02 03 04e 05e Fiscal Year is the one revenue source for the City that was severely affected by the September 2001 terrorism attacks and has not yet climbed back to its previous levels. The tourism industry was already beginning to slow due to the downturn in the national and regional economies when the terrorist attacks practically shut down the industry in fall 2001. As a result, TOT for fiscal year 2002 declined 8%. The recovery from those events has been stifled by the war in Iraq, the SARS epidemic and general sluggishness in the economy. In addition, Carlsbad’s TOT has 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 much of the growth experienced by the other hotels in the City. A large part of the remodeling has been completed and with the strength in the economy, it is projected that TOT revenues will finally get back to the pre- 9/11 levels in FY05. One of the more volatile General fund revenues is the franchise tax. Franchise taxes are paid by certain industries that use the City right-of- way to conduct their business. The City currently has franchise agreements for cable n/ service, solid waste services, and gas and electric services. The cable and solid waste franchises have been growing along with the growth in population and changes in their rate structures. These franchise revenues are projected to grow by about 3% to 5% in fiscal year 2005. The large fluctuations in franchise taxes has come from the taxes on gas and electric services, which are paid by San Diego Gas and Electric (SDG&E). SDGE Franchise Taxes $6 $5 $4 $3 $2 $1 .an 7- 2000 01 02 03 04e 0% SDG&E pays franchise taxes for the use of the public land over which they transport gas and electricity. The City also receives an “in-lieu’’ franchise tax based on the value of gas and electricity transported on SDG&E lines but purchased from another source. The “in-lieu” tax captures the franchise taxes on gas and electricity that is transported using public lands but which would not otherwise be included in the calculations for franchise taxes 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, more than $12 per thousand cubic feet. In addition, the Encina power plant was operating at a much higher capacity. The combination of these two factors resulted in an increase in franchise fees to the City of over 100% in FYOl and FY02 (franchise taxes are paid in April for the previous year). Another price spike occurred in 2003 as Exhibit 1 Monthly Natural Gas Price Forecast can be seen in the price chart. The FY05 forecast shows a decline of 13% from the previous year. Vehicle License Fees (VLF) are collected by the Department of Motor Vehicles when cars or other tow P vehicles are registered. They are calculated on the 3 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. Over the past several years, the State has decreased the VLF paid by taxpayers. This tax break was given in the years when the State was experiencing budget surpluses. Since VLF is a city and county revenue, the State made up the loss of revenue to the cities and counties through what is known as the “backfilling” of the loss with State general fund money. In fiscal year 2004, now faced with large deficits, the State stopped backfilling the cities and counties. This resulted in a loss of VLF revenue to Carlsbad of over $1 million. The State has promised to pay back the loss in FY 07. The estimated revenue for fiscal year 2005 is based on a return of full payment of VLF, an increase of approximately 25%. .. 5ooD ..*am 4Mcr Om ,~~~~~~~~~~~~@~~~~~~~~~~~~~~ Iw4 camfghk kup~~naq~tIqI.mom Development-related revenues include planning, engineering and building permits, and fees paid by developers to cover the cost of reviewing and monitoring development activities such as plan checks and inspections. These revenues are difficult to predict, as many of the planning and engineering activities occur months or years before any structures are actually built. Development-related revenues declined slowly from the high of 1998, but have begun to pick up in the last few years as several large master plans have been working their way through the system. A 17% increase is expected in the revenues for fiscal year 2005, with much of the growth occurring in the building fees as the projects move into the final stage of obtaining building permits. 1 Development Revenues and Permits Issued I $9 1 r 2,500 2.000 1,500 Y 1,000 a“ 1 .- E $4 = $3 ::I ~ I ~ I ~ I I iw0 $0 0 FiscalYear98 99 00 01 02 03 04e 05e I /+Revenues -Residential Permits Issued I 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 2004-05 totals $1 6.3 million, no change from fiscal year 2003-04. Business license taxes are closely tied to the health of the economy. Although, the estimate for fiscal year 2005 shows no increase from the previous year, it is due to some one-time payments received in FY04 rather than no projected growth in the revenue. Absent the one-time payments, it is projected to grow by approximately 5%. 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 grow slightly over the next year, reflecting a softening of the real estate market. Interest income is projected to remain about the same due to the use of some of the General fund balance on major projects as approved on the ballot propositions. The City earns about $2.5 million on its General fund investments every year. Overall, General fund revenues are expected to grow by about 5.4%, or $4.9 million, in the upcoming year. Most of the growth is coming from the tax revenues: mainly property, sales and TOT. Although the City experienced revenue growth between 9% and 17% in the late 199O’s, it Exhibit 1 Grants (Section 8 Housing Assistance, Community DeveloDment Block Grants); was not sustainable growth. Much of those increases were due to the opening of new hotels, restaurants, retail centers, and new home development. As the City matures, it will be increasingly more difficult to produce double-digit growth in revenues. The 5.4% gain projected for fiscal year 2004-05 is respectable given that the CPI is only expected to grow by 2.3% in 2005. This growth is closer to what may be expected in the future. Other Funds Special Revenue Funds I- - Donations- - Special fees and assessments (Housing Trust fund, Maintenance Assessment Districts). The most noteworthy changes in the Special Revenue funds occurred in three programs: the Housing Trust, the Buena Vista Creek Channel Maintenance and the Section 8 Program. Maintenance Districts 22% Housing TNSt 5% All Others Section 8/ 64% 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 2004, the City expects to receive about $2.7 million in repayments. For fiscal year 2005, 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 $100,000 more in revenue for next year, due to the increase in assessment revenue. A five-year maintenance contract was entered into and the assessments along with the balances in the fund will be used to pay for this program. The noteworthy increase in estimated revenues was in the Section 8 Housing program fund, up $564,000 or 10%. The additional projected revenue is due to a 1% increase in our projected lease rate for 2004-05 resulting in an increase in grant funds of $567,000. One other change in the Special Revenue funds in 2004-05 is the recording of the Storm Water Protection Program in the Solid Waste Enterprise fund rather than in the Special Revenue fund. During 2003-04 the solid waste fee was increased to include the cost of this program. The revenue from this fee increase as well as the costs of the Storm Water Protection Program are now recorded in the Solid Waste Enterprise fund. Exhibit 1 Enterprise fund revenues for 2004-05 are projected at $32.8 million, up slightly or $295,000. 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. Other changes in the Enterprise funds are the result of normal fluctuations in operations. Besides the increase in the solid waste fee which occurred during 2003-04, 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. Enterprise Funds Golf Solid Course Waste-, no/, Sanitation 7% \ 7- 2:” Recycled i r Water 7% Water2 65% Internal Service funds show estimated revenues of $1 1.9 million for 2004-05, a decrease of $2 million, or 14%, over 2003-04 projections. lntemal Service funds provide services within the City itself and include programs such as the self-insurance funds for Workers’ Compensation, Liability and Health Insurance, as well as Information Technology and Vehicle Maintenance and Replacement. Departments pay for services provided by these funds; therefore, the rates charged for the services are based on the cost to provide the service. The goal of the Internal Service funds is to match their budgeted expenses with charges to the departments after allowing for a certain level of reserves within the fund. There are several main reasons for the change in the revenue estimates for the Internal Service funds. The most significant change is in the Workers’ Compensation fund. The City is self- insured for workers’ compensation claims. Due to changes in State law and overall increases in health care costs, the City has seen its workers’ compensation claims increase significantly over the past two years. In order to provide sufficient funds for the payment of current and future claims, a transfer of $2.5 million from the various funds that use the workers’ compensation services was made during April 2004. That one-time transfer accounts for the majority of the decrease in revenue estimated in the Internal Service funds for the 2005 fiscal year. Offsetting that decrease in the Workers’ Compensation fund was a $1.2 million increase in interdepartmental revenues. This is the increase in charges to departments for Workers’ Compensation. These charges have been increased to cover the estimated annual claims and ad ministration costs. Another Internal Service fund that had an increase was the General Liability Self-Insurance fund. Liability claims have exceeded revenues over the past few years; however, the Liability fund had significant balances to cover this shortfall. Now that these balances have been drawn down have increased from $650,000 in 2003 to $1.2 million in 2004-05 to cover the estimated annual claims and administration costs. The final change to note in the Internal Service funds is that there is no longer a Records Management Internal Service fund. This fund dissolved and the program costs split between the Information Technology fund and the General fund. Redevelopment revenues are expected to total $3.7 million in the upcoming year, a 12.1 % or $417,000 increase over the projections for the previous year. Most of the increase is the result of additional tax increment to be received from the South Carlsbad Coastal Redevelopment Area. Under redevelopment law, tax increment can only be used to repay debt incurred. Thus, the Redevelopment Agency cannot receive taxes greater than the total of what it expects to incur in the upcoming year plus that amount incurred to date. For fiscal year 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 $91 1,000 from the $712,000 expected in fiscal year 2004. Exhibit 1 Tax increment in the City’s other Redevelopment area (the Village) is expected to increase by 5% to $1.8 million in fiscal year 2005. 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 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 2004-05 totals $147.6 million, which represents an increase of $4.9 million, or 3.4%, from the adopted 2003-04 budget. This increase is mainly the result of personnel cost increases in the General fund budget, which will be explained in more detail below. The I changes in each of the City’s programs will be discussed fully below. Budgetary Policies Due to the uncertainty about the State’s financial problems and how they may affect the City, the theme behind this year’s budget policies was ”managing resources effectively” - to manage our current resources as effectively as possible so that we are able to deliver the same quality and level of our services while maintaining a balanced budget for now and in the future. To achieve that end, the following specific goals were set: 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 No new positions. 0 No new programs, other than those already in progress or anticipated in the CIP. Budget requests for one-time funding to implement specific goals will be considered. Generally, be prudent in your budgeting. Consider cost containment measures and budget discretionary items at minimum levels. Over the past three years the “Expenditure Control Budgeting” or ECB process was used. 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 so every year the block was increased for by an index for growth and inflation. The ECB process was suspended this year in order to tighten up the past budgets. Every program was scrutinized to determine the true cost of providing the services and was budgeted at the level deemed necessary to continue to provide the services. The result was an overall reduction in the majority of the non-personnel accounts. It is expected that we will return to the ECB process next year using the fiscal year 2004-05 budget as the base. 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. The 2004-05 budget reflects the following organizational and structural changes, which will continue to contribute to the overall effectiveness of the organization: Exhibit 1 The Records Management Program is now being shown within the General fund rather than as an Internal Service fund. The costs of the software and hardware for the program have been transferred to the Information Technology Internal Service fund and those costs will be allocated to users in the Information Technology charges. The remaining Records Management costs will become General fund costs and be allocated to other funds through the cost allocation plan. 0 0 The Storm Water Protection Program is now accounted for in the Solid Waste Enterprise fund rather than as a separate Special Revenue fund. In October 2003, as the result of the City of Carlsbad Storm Water Pollution Protection Program Regulatory and Fee Study Report, Council adopted a new rate structure for the City’s solid waste service program to recoup the majority of the Storm Water Pollution Prevention Program costs. This new rate structure increased both residential and commercial trash fees. The Storm Water Protection program, which is budgeted at $1.4 million in 2004-05, was previously funded through a loan from the General fund. Budneted Expenditures Through the application of these guidelines and policies, the 2004-05 Operating budget of $147.6 million was developed. Due to the uncertainties regarding 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 2004-05 Operating budget proposes no new full-time or three-quarter-time employees. The net decrease in hourly staff totaled approximately .34 full-time equivalents (FTE). These changes result in a City workforce of 646 full and three-quarter-time employees and 147.93 hourly FTE. New Faci I i t ies 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. Two new parks are expected to open near the end of next fiscal year: Hidden Canyon and Aviara Park. No additional funds have been included in next year’s budget for the maintenance of these parks since the openings will be so close to the end of the year. The following year’s budget will include additional operating costs for a full- year for both of the parks. Public Safety Public safety has always been, and remains, a top Council priority. In accordance with the budget policies, the Police and Fire departments are not adding any new positions in fiscal year 2004-05. The current level of staffing is considered sufficient to maintain the service levels in the departments. In order to control costs and manage overtime effectively, the Police department is implementing an overtime management plan. Under the plan, overtime budgets in most divisions have been reduced by 6% and an overtime contingency account was created to address any one-time or unusual overtime demands anywhere in the department. This goal of this plan is to minimize the use of overtime where there may be other options, without jeopardizing public safety. Exhibit 1 The Police will also continue to implement their Public Safety Technology Plan this next year. This plan replaces the computer-aided dispatch system originally installed in 1986 and will allow for mobile computing, mapping and automatic vehicle location. Mobile computing will allow officers to receive calls on their in-car computer and perform other functions such as email and accessing regional databases while in the car. A computerized map will show the unit’s current location and location of call. The Automatic Vehicle Location is the real-time tracking of police units with the closet unit to the call being dispatched. These improvements will give us the tools to manage our officers even more effectively. A change in the Fire safety area was previously approved by Council and is reflected in the fiscal year 2005 budget. On July 1, 2003, the City of Carlsbad’s Fire Department became 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@) to an emergency scene regardless of jurisdictional boundaries. The City believes joining the NCDJPA has improved regional coordination, created operational efficiencies, and improved cross-jurisdictional response times with the member agencies. The annual cost associated with being a member of the NCDJPA for year two is estimated to be $260,000, with the City receiving a discount of 20%. Volunteer Program A Community Volunteer Coordinator position was hired during fiscal year 2003-04. This position was designed to create a streamlined way to enable our citizens to connect with volunteer opportunities. This ‘one-stop shop’ to involvement will help create a powerful network to place volunteers within the City and community. Volunteers are a great resource for the City, and as this program continues to develop over the next year, it is expected that the City will benefit even more from the use of volunteers. Technology The City continues to enhance its use of technology in order to reduce processing costs and increase customer services. During the spring of fiscal year 2003-04, the Recreation department implemented an on-line class registration for Aquatic classes. This enabled over 75% of the registrations to be done via the internet. This not only allows busy moms, dads, seniors, and everyone else to be able to register for their favorite aquatic class from home, it also saves staff time previously spent on answering phones, opening mail and processing checks. The plan for FY05 is to implement the on-line registration for the rest of the recreation classes. Once fully implemented, it is expected that there will be a noticeable savings in staff time. Customer Service One of Council’s goals is top-quality service, which means serving our customers well. Although there are only a few 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 2005 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. One new exciting program proposed for next year is the Passport Services program. This program would allow the public to apply for a passport at a City facility instead of having to drive to the next closest passport offices in Oceanside or Escondido. The City could accept the application and mail them to the Department of Passports. The City will receive $30 per passport application received for providing this service. This service is proposed to be provided using existing staff Exhibit 1 and resources. This program will not only provide a new service to our citizens, it will also generate additional revenue for the City. FUND GENERAL FUND SPECIAL REVENUE ENTERPRISE INTERNAL SERVICE REDEVELOPMENT 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 66 vehicles that met the replacement criteria outlined in Administrative Order Number 3, only 42 vehicles were selected for replacement. Of the 42 units selected for replacement, 7 vehicles were downsized. BUDGET BUDGET $ % 2003-04 2004-05 CHANGE CHANGE $ 84.9 $ 90.5 $ 5.6 6.6% 9.7 10.0 0.3 3.1% 32.6 31.6 (1 .o> (3.1%) 13.7 13.4 (0.3) (2.2%) 1.8 2.1 0.3 16.7% Connecting Community, Place, and Spirit TOTAL A new initiative began in 2003 with the ultimate goal of connecting community, place, and spirit. The initiative was kicked off with a conference held in March 2003, which brought together a wide range of community members as well as City staff to begin a collective dialogue about the future. Over the past year, the process continued as twelve community focus groups were held throughout the City, attended by more than 400 citizens, to discuss the themes generated at the conference. All the information was distilled and presented in a Council workshop. At the workshop, Council developed their vision for the look and feel of the City’s future civic centers and City government buildings. _, . .- $ 142.7 $ 147.6 $ 4.9 3.4% Based on the Council’s direction, there are several goals included in the 2004-05 budget to begin the design of the vision. The Centre City Gateway project will be developing a land use vision and strategy process for the coastal area near the center of the City. The Capital Improvement Program contains funding for the land use plans for a City/Safety Training facility and a Public Works center and the 2004-05 operating budget contains $50,000 to begin work on a conceptual plan for a Civic Center Plaza. Besides designing the hardscape for the City, there is also $40,000 in the 2004-05 budget to continue the work of community engagement - continuing the dialogue about what the citizen’s want and what they can do together to connect community, place and spirit in Carlsbad. Budaet bv Fund Type This table below shows the changes in the operating budget for fiscal year 2004-05 compared to the adopted budget for fiscal year 2003-04. Exhibit 1 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. are projected to increase by 14.8% in 2004-05. Due to labor contracts with our employee groups, much Of the Cost was previous I y determined. With the exception of a small increase in capital outlay, the remaining General Fund GENERAL FUND SUMMARY BY EXPENDITURE TYPE (In Thousands) ~ BUDGET BUDGET $ % 2003-04 2004-05 CHANGE CHANGE PERSONNEL $ 51,162 $ 58,725 $ 7,563 14.8% M&O 27,161 25,788 (1,373) (5.1%) CAPITAL OUTLAY 313 52 1 208 66.5% ,TRANSFERS 6,231 5,430 (801) ( 12.9%1 $ 84,867 $ 90,464 $ 5,597 6.6% TOTAL PERSONNEL COSTS BUDGET BUDGET $ % 2003-04 2004-05 CHANGE CHANGE $ 40,679,240 $42,408,064 $ 1,728,824 4-2% I SALARIES HEALTH INSURANCE 4,144,535 4,592,965 PERS 4,413,685 8,645,711 4,232,026 95.9% WORKERS COMP 61 7,431 1,708,870 1,091,439 176.8% wpm OTHER PERSONNEL 1,307,395 1,369,432 62,037 4.7% TOTAL $ 51,162,286 $58,725,042 $ 7,562,756 14.8% This next table shows the breakdown of personnel costs for the General fund. Salaries include full and part-time staff costs and account for $1.7 million of the increase in the General fund. Benefits make up the remainder of the personnel costs with the largest increases in health I GENERAL FUND I insurance, PERS and workers compensation costs. The PERS rates have increased due to the implementation of enhanced benefits as well as the effect of investment losses in the plan. These rates are expected to increase again the following year and then 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 2004-05 General fund budget, which is consistent with the $2.3 million budgeted in the prior year. During 2003-04, less than $150,000 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 largest increase is an $800,000 transfer to the Capital Improvement Program to partially fund the artificial turf project planned for Stagecoach Park. In addition, the Infrastructure Replacement fund transfer was increased by $225,000. This amount is budgeted at about 4% of General fund revenues. The increases were offset by a decrease of approximately $563,000 which was a transfer from the General fund to the Information Technology fund to help fund the CAD hardware costs and the transfer from the General fund to the Storm Water Protection Program Exhibit 1 Special Revenue fund in the amount of $1.2 million. Both of these items were in the previous year’s budget but are not budgeted in 2004-05. 2003-04 $ 3.7 The remainder of the changes in the recommended General fund budget are relatively minor. These are addressed below by Major Service Area (MSA). I GENERAL FUND EXPENDITURES 2004-05 $ 3.7 BY MAJOR SERVICE AREA I CHANGE $ - I CHANGE 0.0% FUND POLlCYlLEADERSHlP 5.4 29.2 6.2 14.3 15.7 8.1 2.3 $ 84.9 ADMINISTRATIVE SERVICES PUBLIC SAFETY COMMUNITY DEVELOPMENT COMMUNITY SERVICES PUBLIC WORKS CONTINGENCY NON-DEPARTMENTAL 6.0 33.1 6.3 14.8 16.9 7.4 2.3 $ 90.5 TOTAL 0.6 3.9 0.1 0.5 1.2 (0.7) - $ 5.6 (In Millions) BUDGET I BUDGET 11.1% 13.4% 1.6% 3.5% 7.6% -8.6% 0.0% 6.6% $ I % I 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 City Clerk’s budget, which is the result of reductions in Records charges for support to the City Clerk due to the conversion of Records from an Internal Service fund. There were minimal changes in the total budget for Administrative Services. The increase is due to conversion of Records Management budget from an Internal Service fund to a General fund. The growth in Public Safety is due mainly to increases in personnel costs. In the Community Development area, the 1.6% increase is due mainly to personnel cost increases offset by declines in one-time costs for the “Connecting Community, Place, and Spirit” program. In the Community Services area, the 3.5% increase is mainly due to the personnel cost increases. The Seniors program shows a 12.9% increase due to the movement of both revenues and costs for the Senior Daytrippers programs from a Special Revenue fund to the General fund budget. The costs of this program are 100% offset by revenue so there is no net cost to the General fund. Public Works shows an overall increase of 7.6%. The largest increase is in the Engineering division. Both plancheck and inspection costs have risen sharply over the past two years due to development activity. It is expected that once development slows down, these costs will also decline. Capital outlay expenses totaling approximately $521,000 have been included in the General fund budget. Changes In Other Funds Special Revenue funds, at $10 million, show an increase in anticipated spending of approximately $325,000, or 3.1%. Most of the increase can be attributed to an increase in Exhibit 1 Housing Assistance Payments of $493,000 for the Section 8 program based on a projected 1% increase in lease rate. 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 $309,000 by the end of fiscal year 2005. A loan from the General fund is included in the budget to cover the shortfall until a solution can be determined. Staff will present options to Council on Street Lighting and Landscaping District #I which includes the medians. The assessments in this District cannot be increased without a vote of the property owners. Enterprise funds total $31.6 million, which is a decrease of $1 million, or 3.1%. The most significant change is in the Sanitation budget. The decrease is due to two special projects in fiscal year 2004. The first was $975,000 for access hole rehabilitations and the second project was $1 05,000 for flow monitoring and video inspections. These were one-time projects. As part of the ongoing financial management program, the City annually prepares five-year forecasts for both the Water and Sanitation funds. The forecast for the Water Enterprise shows that the fund will carry some cash balances forward over the next year as the construction of the 4 million gallons per day recycled water plant and related water lines is completed. When that plant goes into service, the operating requirements will be reevaluated. During the next year, no water rate increases are anticipated. For the Sanitation fund, the forecast shows that a rate increase in the range of 3-4% will most likely be needed in 2007-08 to keep the fund balance reserve within the desired range of 40% of the Operating budget. The Internal Service fund budgets decreased in total by $265,000, or 2.2%. The Internal Service funds are self-supporting through user charges. Changes occurred in a number of these funds: The Workers’ Compensation fund budget was increased by $895,000 due to changes in State law and overall increases in health care costs which have caused workers compensation claims to increase significantly over the past two years. The Health Insurance budget shows a decline of $500,000 due to the change from the self-insured plan to the CalPERS Health Plan effective July 2003. Fiscal year 2003-04 included appropriations to pay for incurred but unreported claims as of June 30, 2003. As of January 2004, all of the claims from the self-insured plan have been settled and this budget only includes dental, vision and life insurance costs. The Vehicle Replacement fund budget varies from year to year depending on the need for replacements. A list of the requested vehicle replacements can be found at the end of this document. The Information Technology fund shows a decrease in its budget of $451,000. This is mainly due to the $853,000 budgeted in FY04 for hardware for the Public Safety Technology Plan (computer-aided dispatch and related components). a3 Exhibit 1 The Redevelopment Agency budgets have increased for 2004-05 by a total of $254,000. This . is mainly due to additional amounts budgeted for the South Carlsbad Redevelopment Area. Implementation of the Master Plan is beginning, so more of staffs time and consultant time 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 gives 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. 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 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/replacement) of major infrastructure such as streets, libraries, parks, fire stations and administrative facilities, water, sewer and drainage facilities, and other facilities that are located on or in the ground. In most cases, the total construction cost of each of these assets is recorded and tracked as part of the City’s inventory of capital infrastructure assets and other City-owned property. The 2004-2005 Preliminary Capital Improvement Program outlines $52.5 million in new appropriations to provide additional continued funding for the continuation of existing projects as well as funding for new projects. Projected revenues during the fiscal year are estimated at $51.9 million. Revenues are collected as building permits are issued, and as the need for facilities arises, the money is used to fund the new facilities. 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 are reviewed on an annual basis by the CIP Review Committee and subsequently by the City’s management and City Council. The Review Committee begins the project view by determining the need of a project 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 compliance? 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)? 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 Additional review of proposed projects relates to the overall timing of projects, the funding availability, an analysis of engineering cost estimates, and the requirement for City resources. FUTURE GROWTH AND DEVELOPMENT In order to estimate future revenues from development, several assumptions about the rate and type of future development 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 this information to the buildout capacity of the City using adopted general plans. Information about existing development activity combined with estimates of how remaining net developable land might develop are then summarized to prepare future projections about when and where residential and non-residential Finance Department staff then prepare cash flow schedules using existing fund balances combined with future estimated fee revenues paid by those developments, and compares these balances of available funds to the expenditure plan to ensure that funding will be sufficient 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. This year’s proposed CIP reflects staffs recommendation to move out the construction of Poinsettia Park (Phase II) as well as the relocation of Fire Station No. 3 (Chestnut Avenue location). Moving these two projects out will provide sufficient funding for projects in the next 5 years. During this time an evaluation of the remaining projects in this fee program can occur. development will occur. Residential development is expected to remain fairly steady over the next few years. The number of annual building permits issued is expected to decrease when compared to the previous five-year period. An additional 6,800 units are remaining before the City is predominantly built out, and the development schedules of the remaining vacant parcels is driving the timing of those future units, rather than economic or market conditions. Residential development for 2003-2004 is projected at 1,200 units, and construction is expected to average about 740 units per year over the next five years, as compared to an average of over 1,300 units per year for the previous five-year period. Residential Units Trend I999 to 2009 Permits Issued 2000 1500 1000 500 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 The amount of non-residential development is also expected to remain fairly steady and actually increase over the next five years. The average annual square feet of non-residential development for the past 5 years was about 675,000. This year, the estimate is for 273,000 square feet, but the average annual development next 5-year period is more than 1,100,000 square feet per year. Projects include several neighborhood commercial/retail developments located in or near the areas where most of the residential development has recently occurred or where new development is planned over the next several years. In the southeast quadrant, commercial projects include retail and restaurants, a theater, and a daycare and church. Sunny Creek Plaza is a planned commercial development located east of El Camino Real at College Boulevard next to the Sunny Creek residential neighborhood, and the Bressi Ranch area will include 130,000 square feet of commercial development. Other commercial developments are planned at Calavera Hills and at Poinsettia Shores; at the La Costa Resort plans include construction of 184,000 square feet of commercial living units. Industrial development consists of various new office and industrial projects, as well as expansion of existing projects at Kelly Corporate Center, Callaway Golf, GIA, and Legoland. 1. 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 2004-2005 and subsequent years to buildout. Projected Development Residential and Non-Residential Construction Residential Non-Residential Year Units Square Feet 2003-2004 current I, 198 273,336 2004-2005 1,355 765,312 2005-2006 1,025 1,383,740 2006-2007 81 5 1,505,003 2007-2008 131 1 ,I 52,053 2008-2009 373 1,082,072 Years 6-1 0 1,991 5,263,610 Years 1 I-buildout 1,116 2,398,336 Total Future 6,806 1 3,550,126 REVENUES Revenues for Capital Projects from now until buildout total $443 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. a7 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 Funding Sources 2004-2005 to Buildout Total Revenue = $476 million In Millions 160 140 120 100 80 60 40 20 0 Approximately 30% 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 commerciaVindustria1 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 9% of the total. Water and Sewer replacement revenues generated by user fees equal approximately 21% of total revenues, and are used to pay for replacement of existing water and sewer facilities. Infrastructure Replacement revenues (14%) 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 26% consists of revenues from other agencies and includes federal and State grants, the County sales tax program (TransNet), Redevelopment agency revenue, Golf Course funding, 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 Management Zone. The building permit valuation used for computing Public Facilities Fees is $1 56,025 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 $98. The trips-per-day value for commercial and industrial buildings are averaged at 23 trips per 1,000 square feet of development, although the actual volume of trips generated by commerciaVindustriaI building can vary widely depending on the ultimate land use. The value assigned to each commerciaMndustria1 trip is $40. 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 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 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 future park site acquisition, development and restoration. 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. CAPITAL PROJECTS The following two sections provide information about the major capital projects. The first section focuses on projects planned in the next five years, and the second section contains an overview of the entire expenditure plan through buildout of the City. 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 following this section. Streets - Several street construction projects are planned for the next five years. Completion of the final segment of 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. 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 and construction of El Fuerte 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. Replacement of the Carlsbad Boulevard Encinas Creek Bridge is planned in the next five years. In addition, there are several street widening projects planned along El Camino Real. The pavement overlay program is expected to cost about $3.3 million per year. Local streets are overlayed approximately every 7 years. 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 Major Future Road Projects Alga Norte Park and Aquatic Center - This park site consists of 30 acres in the Southeast Quadrant and planned amenities include ball fields, soccer fields, picnic areas, tot lots, a skate park, a dog park, and restrooms and parking facilities, and an aquatic center. Construction is phased over the next several years. 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 stagecoach Park Synthetic Turf - Funding is included for the installation of approximately 5 acres of synthetic turf on outfield areas of fields 2 and 3 at Stagecoach Park. 0 Carlsbad Municipal Golf Course - The City has plans are to construct an 18-hole championship golf course on property located north of Palomar Airport Road along College Boulevard. An initial “clearing and grubbing” operation is expected to take place in the Fall of 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 2004, and formal grading is expected to begin in September 2005. The targeted opening is Spring 2007. 0 Lake Calavera Trails Master Plan and Construction - Funds for development of a Master Plan and construction of a public multi-use, recreational trail system are planned on property located at Lake Calavera in the northeast quadrant of the City. The project includes utilizing volunteers to construct approximately 2.5 miles of the proposed 5 miles of trails. 0 Civic Center and Public Works Center - Preliminary planning for a Civic Center and a Public Works Facility has begun. The Civic Center 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 determine what the needs are - for the 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 Vista/Carlsbad InterceDtor - 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 currently undeway and will continue for several more years. Water Lines - Several major water lines are scheduled for construction within the next five ars: Cannon Road east of El Camino Real Carlsbad Boulevard - south of Avenida Encinas College Boulevard - various sections El Fuerte from Poinsettia Lane to Palomar Airport Road Faraday Avenue extension Melrose Drive from Palomar Airport Road to Faraday Recvcled Water Program - Construction of the Recycled Water Facility will continue over the next year. This $41 million project includes construction of a four-million-gallons-per-day treatment plant, distribution pipelines, a flow equalization storage facility, and pump stations. Construction of the treatment plant is complete as of end of April 2004; however, timing of the plant operations is dependent upon completion of Encina’s Flow Equalization project. It is estimated this project will be complete in April 2005, at which time the recycling facility will become operational. The pipelines will also be completed by that time, and the pump stations and Mahr Reservoir will become operational around July 2005. 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 CAPITAL PROJECTS 2004-2005 TO BUILDOUT The CIP for 2004-2005 to buildout outlines approximately 159 future projects at $466 million. CIP Projects - All Future Projects lTvPe of Proiect Quantity Total Cost1 -. Civic Facilities 19 $96,593,215 Streets/Circulation 54 94,173,115 Parks 16 92,140,808 Sewer 25 60,111,078 40 39,589,70 1 Water Drainage 5 16,253,524 N/A 67,615,990 Other (loans) 159 $466,477,431 Total Future Construction of City facilities such as libraries and administrative facilities, 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 unfunded portions of Cannon Road east of College) total $97 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. I Approximately 20% of future expenditures, $94 million, is planned for street and traffic signal construction projects. Included in this category is construction of major roadways that will add east to west and north to south connections and provide additional routes to the neighboring cities of Oceanside, Vista, and San Marcos. Sections of these roads are already under construction by developers. The future street projects anticipated in the City include: 0 Faradav Avenue and Melrose Drive Extensions east of El Camino Real (*) - The formation of CFD No. 3 is targeted for August 2004, and construction of the road and improvements is planned in the years subsequent to the formation. Poinsettia Lane east of El Camino Real (*) - The City and Property owners have formed the Poinsettia Lane East Assessment District No. 2002-01 for the purpose of financing the construction of certain street and other improvements. 0 Cannon Road and College Boulevard East of El Camino Real (*) - An assessment district has been formed and Council authorized the issuance of bonds to provide funding for the improvements in May 2004. (*) These roads will be constructed by developers that are required to build them in conjunction with their development projects in those areas. Funding provided by the aforementioned financing districts is therefore not included in the CIP. Additional roadway projects include replacement of the Carlsbad Boulevard Encinas Creek 2004-2005 PRELIM I NARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 Bridge, several road-widening projects, and over $60 million for future pavement overlay. Additional traffic signals are expected to cost approximately $5 million. The third largest expenditure category is for park and recreational facility construction and acquisition projects, which total $92 million, or 20%. Park projects planned within all quadrants of the City are listed below in addition to the estimated year of construction: Northwest Quadrant Northeast Quadrant NW Quadrant Park (Pine School) 2004-05 Community Facility (Pine School) 2010-14 Cannon Lake Park 2015-20 Hosp Grove-Buena Vista Lagoon Recreational Improvements 201 5-20 Hidden Canyon Park 2004-05 Southwest Quadrant Poinsettia Park Phase II 2010-14 Aviara Community Park 2004-05 Aviara Community Facility 2010-14 Southeast Quadrant Alga Norte Park 2005-06 Alga Norte Aquatic Center 2005-06 Leo Carrillo Park Phase Ill 2015-20 Citvwide Park and Recreational Projects Municipal Golf Course 2005-06 Business Park Recreational Facility 201 5-2020 Veteran’s Memorial Park 2010-2020 Sewer projects are expected to cost $60 million, which includes over $40 million in sewer replacement projects. Funding is also provided for the repayment of bonds for the expansion of the Encina Wastewater Facility, and the Encina Water Pollution Control Facility projects. Some of the major areas in which these installations or upgrades are planned include segments of College Boulevard and El Fuerte, and along El Camino Real. Future water projects total about $40 million (8.5%) and include construction of new waterlines, both potable and recycled, concurrent with new development. Replacement of existing potable and recycled waterlines is also included in this category, and additional reservoirs are planned to increase storage for ultimate demands. Specific timing and cost estimates for all capital projects are identified in the Detail Schedule of Capital Projects (2004-2005 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. Staff is investigating possible outside funding sources, such as federal and State grants. Unfunded Proiects El Camino Real Widening from Cassia Road to Camino Vida Roble Palomar Airport Road Widening and Bridge Reconstruction Poinsettia Lane - Read “E” Cannon Road - Raech 4 - College to City Limits 2004-2005 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Exhibit 2 SUMMARY The proposed 2004-2005 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 2004-2005 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. GROWTH MANAGEMENT PLAN The Growth Management Plan was developed and voted into law by the citizens of Carlsbad in 1986. The plan was established 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 - Schoo1s - Water Distribution - 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 2004-2005 CIP, compliance with the Growth Management Plan is assured. CITY OF CARLSBAD PROPOSED REVISIONS TO THE MASTER FEE SCHEDULES JUNE 2004 Fee per gross acre Area / Basin Name A Buena Vista Lagoon B Agua Hedionda Lagoon C Encinas Creek D Batiquitos Lagoon 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 $43,000 $43,000 $0 Current Revised Low High Low High Runoff Runoff Runoff Runoff $1,837 $3,007 $1,865 $3,052 3,949 6,463 4,009 6,560 2,953 4,832 2,997 4,905 40 66 41 67 iewer Benefit Area Fees -- Current Revised Chanae Area A Area B Area C Area D Area E Area F Area G Area H Area I Area J Area K Area L $ 379 $ 384 $ 667 675 1,645 1,675 1,648 1,678 2,430 2,475 2,443 2,488 103 105 808 808 387 392 1,333 1,351 2,690 2,725 1,054 1,067 5 8 30 30 45 45 2 5 18 35 13 Area M 52 52 Bridge & Thoroughfare District #2 Fees Current Revised Change Zone 5 $239 $246 $7 Zone 20 1,242 1,278 36 Zone 21 990 1,032 42 Bridge & Thoroughfare District #3 Fees Current Revised Change Fee Der ADT $138 $140 $2 Exhibit 3 Agricultural Mitigation Fees Current Revised Change $8,858 $9,744 $886 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 4 RESOLUTION NO. 2004-195 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET AND CAPITAL IMPROVEMENT OF CARLSBAD AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR THE VARIOUS FUNDS. PROGRAM FOR THE FISCAL YEAR 2004-05 FOR THE CITY WHEREAS, the City Council of the City of Carlsbad, California has reviewed the proposed final Operating Budget and Capital Improvement Program for fiscal year 2004-05 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 2004-05 on May 5, 2004 pursuant to Planning Commission Resolution No. 5600. 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, 2004-05 Operating Budget and 2004-05 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. 2. That the amounts reflected as estimated revenues for fiscal year 2004-05 as shown in Exhibits A and B are hereby adopted as the budgeted revenues for 2004-05. 3. That the amounts designated as the 2004-05 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: Page 2 of Resolution # 2004-195 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 $1 00,000 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 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. D. The City Manager may authorize the hiring of temporary or part time staff as necessary, within the limits imposed by the controls listed above. 6. That the legal level of budgetary control is the fund level. Budgets may not legally be 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 I9 20 2Y 22 23 24 25 26 27 28 Page 3 of Resolution # 2004-195 Exhibit 4 exceeded at the fund level without appropriate authorization by the City Council. 7. That all appropriations for Capital Improvement Projects remaining unexpended at June 30,2004, are hereby appropriated for such capital projects for the 2004-05 fiscal year. 8. That interest earned on grants may be appropriated during the year and all appropriations for grants remaining unexpended at June 30, 2004, are hereby appropriated for the 2004-05 fiscal year. 9. That all appropriations in the Operating Budget remaining unexpended at June 30, 2004, are hereby appropriated to the 2004-05 fiscal year Operating Budget. 10. That all appropriations for outstanding encumbrances as of June 30, 2004, are hereby continued into 2004-05 for such contracts or obligations. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 22nd day of June ,2004 by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard NOES: None ABSENT: None " (SEAL) CITY OF CARLSBAD OPERATING FUNDS PROJECTED FUND BALANCES EXHIBIT A PROJECTED UNRESERVED BALANCE ESTIMATED ESTIMATED FUND BALANCE JUNE 30,2004 FUND JULY 1,2003 REVENUES EXPENDITURES TRANSFERS GENERAL FUND I SPECIAL REVENUE POLICE ASSET FORFEITURE COPS GRANT POLICE GRANTS HOUSING SECTION 8 HOUSING TRUST FUND LIBRARY ENDOWMENT FUND LIBRARY GIFWBEQUESTS TREE MAINTENANCE MEDIAN MAINTENANCE STREET LIGHTING BUENA VISTA CRK CHNL MNT LLD #2 ARTS SPECIAL EVENTS RECREATION DONATIONS SENIOR DONATIONS CDBG ENTITLEMENT COMMUNITY ACTIVITY GRANTS CULTURAL ARTS PROGRAM SISTER CITY DONATIONS ARTS GENERAUGALLERY DONATIONS 61,447,666 594,639 180,190 137,538 414,501 4,231,427 26,279 1 16,094 875.691 (68,072) 1,103.1 54 893,628 14,172 51,090 57,123 178,469 0 1,057,579 231,214 5,331 94.223 TOTAL 10,194,270 ENTERPRISE 1 WATER OPERATIONS 12,453,950 RECYCLED WATER OPERATIONS 1,633,871 SANITATION OPERATIONS 5,399,577 SOLID WASTE MANAGEMENT 4,951,124 GOLF COURSE 1,029,856 TOTAL 25.468.378 INTERNAL SERVICE I WORKERS COMP SELF INSURANCE 1.21 1,510 RISK MANAGEMENT 2,022,498 HEALTH INSURANCE 1,084,542 RECORDS MANAGEMENT (2) 91,293 VEHICLE MAINTENANCE 388,509 VEHICLE REPLACEMENT 6,317,425 INFORMATION TECHNOLOGY 2,960,223 TOTAL 14,076,000 REDEVELOPMENT I VILLAGE OPERATIONS / DEBT SVC 1,104,246 VILLAGE LOW/MOD INCOME HOUSING 1,685,412 SCCRA OPERATIONS / DEBT SVC (739,151) SCCRA LOWIMOD INCOME HOUSING 144.230 TOTAL 2,194,737 91,216,000 155,000 140,000 50,000 5,492,000 3,367,750 8,650 115,000 616.408 459,096 923,460 28,027 600 28.000 3,600 29,000 765,461 32,000 7,150 750 10.000 79,118.066 230,000 230,000 130,000 5,873,505 246,774 12,000 115,000 644.815 461,100 1,002,093 70.600 16,000 50,000 10,000 20,000 765,461 50,000 20,000 0 1 .ooo 12,231,952 21.640.700 2,090,700 6,604,500 1,657,900 75,000 32,468,800 3,325,000 720,000 920,000 958,000 1,786.000 1,675,000 4,479,500 13,863,500 1,797,978 537,000 735,273 242,924 3,313,175 9.950.348 20,827,346 2,038,893 7,732.819 1.31 1,085 233,510 32,143,653 2,596,429 1,495,051 1,521,636 958,945 1,816,783 828,000 5,475,520 14,692,364 1,546.043 51,300 347,964 24,000 1,969,307 73.91 6.1 48 370.548 519,639 90,190 57,538 32,996 7,350,403 22,929 116,094 847.284 (70,076) 1,024,521 851,055 (1,228) 29,090 50,723 167,469 0 39,579 218.364 6.081 103,223 11.475,874 8,900 6,400 13,276,204 1,685,678 4,477,658 5,497,939 871.346 25.808.625 1,940,081 1.247.447 482,906 (90,346) 0 357,726 27,089 4,500 770.503 4,825,752 (300,000) 1,056,181 2,171.1 12 (351,842) 363.154 3.238.605 TOTAL OPERATING FUNDS $1 13,381,051 $153,093,427 $1 37,873,738 $0 $0 $1 19,265,204 EXHIBIT A CITY OF CARLSBAD OPERATING FUNDS PROJECTEDFUNDBALANCES PROJECTED PROJECTED BALANCE ESTIMATED PRELIMINARY FUND RESERVED BALANCE FUND JULY 1,2004 REVENUES BUDGET TRANSFERS BALANCES JUNE 30,2005 GENERAL FUND I SPECIAL REVENUE I POLICE ASSET FORFEITURE COPS GRANT POLICE GRANTS HOUSING SECTION 8 HOUSING TRUST FUND LIBRARY ENDOWMENT FUND LIBRARY GIFTS/BEQUESTS TREE MAINTENANCE MEDIAN MAINTENANCE STREET LIGHTING BUENA VISTA CRK CHNL MNT LLD #2 ARTS SPECIAL EVENTS RECREATION DONATIONS SENIOR DONATIONS CDBG ENTITLEMENT COMMUNITY ACTIVITY GRANTS CULTURAL ARTS PROGRAM SISTER CITY DONATIONS 73,916,148 519,639 90,190 57.538 32,996 7,350,403 22,929 116,094 847.284 (70,076) 1.024.521 851,055 (1,228) 29,090 50,723 187.469 0 39,579 218.364 6,081 ARTS GENERAL DONATIONS 103,223 TOTAL 11,475,874 ]ENTERPRISE WATER OPERATIONS 13,276,204 RECYCLED WATER OPERATIONS 1,685,678 SANITATION OPERATIONS 4.477.658 SOLID WASTE MANAGEMENT 5,497,939 GOLF COURSE 871.346 TOTAL 25808.825 INTERNAL SERVICE WORKERS COMP SELF INSUR 1,940,081 RISK MANAGEMENT 1,247.447 HEALTH INSURANCE 482.906 RECORDS MANAGEMENT (2) 0 VEHICLE MAINTENANCE 357,726 VEHICLE REPLACEMENT 27,089 INFORMATION TECHNOLOGY 770,503 TOTAL 4,825.752 IREDEVELOPMENT VILLAGE OPERATIONS / DEBT SVC 1,056,181 VILLAGE LOW/MOD INCOME HOUSING 2,171,112 SCCRA OPERATIONS / DEBT SVC (351.842) SCCRA LOW/MOD INCOME HOUSING 363,154 TOTAL 3.238.605 96,076,000 70,000 145,000 0 6,056,728 462,750 8,ooo 76,000 582,068 435,794 899.371 130.000 73,200 35.000 10,m 20,000 688.1 11 30,000 7.000 200 13,000 9,742,222 20.980.820 2,320,000 6,961,800 2,426,000 75,000 32,763,620 - 2,020.000 1,240.000 905,700 0 1,709,076 1,780,911 4,244,400 11.900.087 ~ 1,936,055 526.000 936.497 310,833 3,709.385 90,464,488 57.000 233,710 0 6,042,631 256,983 12,m 0 742.682 701,469 985,400 171.800 28,205 45,596 8.700 0 688,111 50,000 15,000 3.400 14,000 10,056,687 20,945,004 1.730.385 8,859,054 1,784,312 230.000 31,548.755 2,223,498 1.494.712 1.013.268 0 1,889.696 1,808.ooo 5,010,367 13,439,541 1,530,922 117,005 435.526 54,293 2,137,746 (335,751) 79,191,909 532.639 1.480 57.538 47.093 7,556,170 18.929 192,094 686,670 0 938,492 809.255 43.767 18.494 52,023 207,469 0 19,579 210,364 2,881 102,223 11.497.160 13,312,020 2,275,293 4,560,404 6,139,627 716,346 27,023,690 (3,135,000) (1,398.41 7) (743,493) 249,242 375,338 0 177,106 (7.1 37,336) 0 (1.198.200) 4.536 (592,195) 1,461.314 2,580.107 149,129 619,694 4,810.244 TOTAL OPERATING FUNDS $119,265,204 $154.191.314 $1 47,647,217 $0 $121,930308 EXHIBIT A ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2002-03 2003-04 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ESTIMATED REVENUE 2004-05 GENERAL FUND 1 TAXES PROPERTY TAX $24,973,532 $26,800,000 SALES TAX TRANSIENT TAX FRANCHISE TAX BUSINESS LICENSE TAX TRANSFERTAX TOTAL TAXES INTERGOVERNMENTAL VEHICLE LICENSE FEES OTHER TOTAL INTERGOVERNMENTAL 25,542,844 25,080,000 8,387,388 8,800,000 3,729,713 5,003,000 2,305,178 2,900,000 1,126,804 1,200,000 66,065,459 69,783,000 5,066,902 4,050,000 1,562.21 5 1,318,000 6,629,117 5,368.000 LICENSES AND PERMITS BUILDING PERMITS 986.890 1 ,000.000 OTHER LICENSES & PERMITS 1,055,639 1.000,ooo TOTAL LICENSES & PERMITS 2,042,529 2,000.000 CHARGES FOR SERVICES PLANNING FEES 1,029.582 600,000 BUILDING DEPT. FEES 707,691 775,000 ENGINEERING FEES 2,220,695 1,800,000 AMBULANCE FEES 1,316,956 1,440,000 RECREATION FEES 1,440,530 1,310,000 993,896 1,000,000 OTHER CHARGES OR FEES TOTAL CHARGES FOR SERVICES 7,709,350 6,925,000 FINES AND FORFEITURES 860,692 930,000 INCOME FROM INVESTMENTS AND PROPERTY' 4,483,932 2,910,000 1NTERDEPARTMENTAL CHARGES 2,686,817 2,600,000 OTHERREVENUESOURCES 650,339 700,000 $28,156,000 26,410,000 9,220,000 4,670,000 2,900,ooo 1,230,000 72,586,000 5,080,000 1,140,000 6,220,000 1,440,000 1,440,000 2,880,000 600,000 1,120,000 1,500,000 1,500,000 1,340,000 1,020,000 7,080,000 950,000 2,910,000 2.700.000 750,000 I-- TOTAL GENERAL FUND 91.128.235 91,216,000 I 96,076,000 * Interest is calculated on an amortized cost basis. AS % DIFFERENCE OF FY 03-04 2003-04 TO PROJECTED 2004-05 5.1% 1,356,000 5.3% 1,330,000 4.8% 420,000 -6.7% (333,000) 0.0% 0 2.5% 30,000 4.0% 2,803,000 25.4% 1,030,000 -13.5% (178,000) 15.9% 852.000 44.0% 440,000 44.0% 440,000 44.0% 880,000 0.0% 0 44.5% 345,000 -16.7% (300,000) 4.2% 60,000 2.3% 30,000 2.0% 20,000 2.2% 155,000 2.2% 20,000 0.0% 0 3.9% 100,000 7.1% 50,000 5.3% 4,860,000 EXHIBIT A ESTIMATED REVENUE 2004-05 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES AS % DIFFERENCE OF FY 03-04 2003-04 TO PROJECTED 2004-05 ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2002-03 2003-04 /SPECIAL REVENUE FUNDS I POLICE ASSET FORFEITURE ASSET FORFEITURES 62,376 INTEREST 27,000 TOTAL 89,376 130,000 25,000 155,000 50,000 -61.5% (80,000) -20.0% (5,000) -54.8% (85,000) COPS GRANT STATE FUNDING (AB3229) 174,795 135,000 5,000 140,000 140,000 3.7% 5,000 0.0% 0 3.6% 5,000 INTEREST TOTAL 7.462 182,257 POLICE GRANTS STATE GRANT 80,931 INTEREST 7,084 TOTAL 88,015 45,000 5,000 50.000 -100.0% (45,000) -100.0% (5.000) -100.0% (50,000) - HOUSING - SECTION 8 INTEREST FEDERAL GRANT TOTAL 2,659 5,084,652 5,087,311 12,000 5,480,000 5,492,000 -16.7% (2.000) 10.3% 566,728 10.3% 564.728 6,056,728 239,000 223,750 HOUSING TRUST FUND INTEREST 620,397 AFFORDABLE HOUSING FEES 647,355 OTHER 454,024 TOTAL 1,721,776 210,500 415,550 2,741,700 3,367,750 13.5% 28,500 -46.2% (191,800) -1 00.0% (2,741,700) (2,905,000) -86.3% 462,750 7 LIBRARY ENDOWMENT FUND INTEREST 12.591 8,650 8.650 8,000 8,000 71,000 76,000 TOTAL 12,591 LIBRARY GIFTEYBEQUESTS GI FTS/BEQUESTS 5,821 INTEREST 72,045 TOTAL 77,866 50,000 65,000 1 15,000 -90.0% (45,000) 9.2% 6.000 -33.9% (39,000) EXHIBIT A CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2002-03 2003-04 ESTIMATED REVENUE 2004-05 AS % DIFFERENCE OF FY 03-04 2003-04 TO PROJECTED 2004-05 TREE MAINTENANCE INTEREST TREE MAINTENANCE FEES INTERDEPARTMENTAL TOTAL 40,638 28,000 28,000 448.068 106.000 0.0% 0 -1 0.1 % (50,340) 17.8% 16,000 -5.6% (34,340) 502,628 90,Ooo 633,266 498,408 90,Ooo 616,408 582,068 MEDIAN MAINTENANCE INTEREST MEDIAN MAINTENANCE FEES OTHER TOTAL 0 451,869 n 0.0% 0 0 459,096 0 459,096 0 41 1,297 24,497 435,794 -1 0.4% (47,799) 0.0% 24,497 -5.1% (23,302) 451.869 STREET LIGHTING INTEREST INTERDEPARTMENTAL STREET LIGHTING FEES TOTAL 49,010 38,590 794,178 881,778 36,400 38,500 848,560 923,460 31,000 28,000 840,371 899,371 -14.8% (5,400) -27.3% (1 0,500) -1 .O% (8,189) -2.6% (24,089) BUENA VISTA CREEK CHNL MAlNT INTEREST BUENA VISTA FEES TOTAL 40,235 99,997 140,232 28,000 27 30,000 100,Ooo 130,000 7.1% 2.000 370270.4% 99,973 363.8% 101,973 28,027 LLD #2 INTEREST LLD #2 FEES TOTAL 150.0% 0.0% 900 71.700 600 0 600 1,500 71,700 73,200 . -- 121 00.0% 72,600 ARTS SPECIAL EVENTS INTEREST DONATIONS TOTAL 2,769 25.700 2,500 25.500 3,000 32,000 35,000 20.0% 500 25.5% 6,500 25.0% 7,000 28,469 28,000 RECREATION DONATIONS INTEREST DONATIONS TOTAL 2,532 15,374 3,000 600 3,000 7,000 10,000 0.0% 0 0.0% 6,400 177.8% 6,400 17,906 3,600 - EXHIBIT A CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2002-03 2003-04 SENIOR DONATIONS INTEREST 8,379 5,000 DONATIONS 18,766 24.000 OTHER 190 0 TOTAL 27,355 29,000 CDBG ENTITLEMENT INTEREST 32,906 30,000 GRANT REVENUE 791,094 735,461 TOTAL 824,000 765,461 COMMUNITY ACTIVITY GRANTS OPERATING TRANSFER IN 25,000 0 INTEREST 47,706 32,000 TOTAL 72,706 32,000 CULTURAL ARTS PROGRAM INTEREST 10,495 7,150 TOTAL 10,495 7,150 ~~ ARTS GENERAUGALLERY DONATIONS INTEREST 4,511 3,000 DONATIONS 16,439 7,000 TOTAL 20,950 10,000 ARTS GENERAUGALLERY DONATIONS INTEREST 4,511 3,000 DONATIONS TOTAL 16.439 7.000 ,... -. - 20,950 10,000 SISTER CITY DONATIONS INTER EST 235 250 DONATIONS 500 500 OTHER 0 0 TOTAL 735 750 10,368,953 12,231,952 TOTAL SPECIAL REVENUE FUNDS ESTIMATED AS % DIFFERENCE REVENUE OF FY 03-04 2003-04 TO 5,000 15,000 -7 30,000 688,111 -i 30,000 30,000 7,000 7,000 3,000 10,000 13,000 0.0% 0 -37.5% (9,000) 0.0% 0 -31 .O% (9,000) 0.0% 0 -10.5% (77,350) -1 0.1 % (77,350) 0.0% 0 -6.3% (2,000) -6.3% (2,000) -2.1% (1501 I --I 0.0% 0 42.9% 3.000 30.0% 3,000 -20.0% -1 00.0% 0.0% .. . 9,742,222 I -20.4% (2,489,730) EXHIBIT A CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2002-03 2003-04 ENTERPRISE FUNDS I WATER OPERATIONS WATER SALES 13,081,345 13,377,000 READY TO SERVE CHARGES 3,705,974 3,786,000 PROPERTY TAXES 1,697,040 1,782,000 NEW ACCOUNT CHARGES 103,430 103,000 BACK-FLOW PROGRAM FEES 105,390 109,000 PENALTY FEES 260,709 200,000 INTEREST 744,491 689,000 ENGINEERING & PLAN CHECK FEES 3,510 3,500 ENGINEERING OVERHEAD 31 8,987 329,000 SERVICE CONNECTION FEES 140,885 140,000 AGRICULTURAL CREDITS 153,647 153,200 OTHER 787,507 969,000 TOTAL 21,102,915 21,640.700 RECYCLED WATER WATER SALES 1,090,230 1,200,000 READY-TO-SERVE CHARGE 86.223 85,700 RECYCLED WATER CREDITS 342,055 425,000 INTEREST OTHER TOTAL 652,908 365,000 10,297 15,000 2,181,713 2,090,700 SANITATION OPERATIONS SERVICE CHARGES 6,177,845 6,200,000 MlSC SEWER 43.814 54,500 ENGINEERING OVERHEAD 257,590 230,000 PENALTY FEES 64,557 55,000 INTEREST 324,892 250,000 OTHER 129,206 15,000 TOTAL 6,997,906 6,804,500 SOLID WASTE MANAGEMENT INTEREST 220,565 206,000 RECYCLING FEES (AB939) 240,463 240,000 PENALTY FEES 41,296 40,000 NONJURISDICTIONAL FEES 586,574 600,000 STATE GRANT 57,861 51,900 TRASH SURCHARGE OTHER TOTAL GOLF COURSE 0 720,000 7,851 0 1,154,610 1,857,900 TRANSFER FROM GENERAL FUND 600,000 INTEREST TOTAL 0 125,230 75,000 725,230 75,000 TOTAL ENTERPRISE FUNDS 32,162,374 32,468.800 ESTIMATED REVENUE 2004-05 13,387.000 3,868.000 1,871 ,OOO 100,000 11 1,000 175,000 771,920 3,500 338,000 137,000 147,000 71.400 20,980,820 1,340,000 102,000 578,000 300,000 0 2,320,000 6,334,000 55,600 236,900 56,000 264,000 15,300 6,961,800 210,000 235,000 40,000 614,000 27,000 1,300,000 0 2,426,000 0 75,000 75,000 32,763,620 DIFFERENCE 2003-04 TO 2004-05 AS % OF FY 03-04 PROJECTED 0.1 % 10,000 2.2% 82,000 5.0% 89,000 -2.9% (3.000) 1.8% 2,000 -12.5% (25,000) 12.0% 82,920 0.0% 0 2.7% 9,000 -2.1% (3.000) -4.1% (6,200) -92.6% (897.600) -3.1% (659,880) 1 1.7% 140,000 19.0% 16,300 36.0% 153,000 -17.8% (65,000) -1 00.0% (15,000) 11 .ova 229,300 2.2% 134,000 2.0% 1,100 3.0% 6,900 1 3% 1,000 5.6% 14,000 2.0% 300 2.3% 157.300 1.9% 4,000 -2.1% (5,000) 0.0% 0 2.3% 14,000 -48.0% (24,900) 80.6% 580,000 0.0% 0 .. 30.6% 568,100 0.0% 0 0.0% 0 0 0 0.9% 294,820 EXHIBIT A ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2002-03 2003-04 IINTERNAL SERVICE FUNDS I CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ESTIMATED REVENUE 2004-05 AS % DIFFERENCE OF FY 03-04 2003-04 TO PROJECTED 2004-05 WORKERS COMP SELF-INSURANCE INTEREST INTERDEPARTMENTAL OTHER (OP TRANS IN) TOTAL 2.000,00( 2,020.00c F 1,200.00( 56,154 600,231 16,276 672.661 20,000 750,000 2,555,000 3,325,000 0.0% 0 166.7% 1,250,000 -100.0% (2,555,000) (1,305,000) -39.3% LIABILITY SELF-INSURANCE INTEREST INTERDEPARTMENTAL OTHER TOTAL 99,833 603,009 34,214 737,056 60,000 650,000 10,000 720,000 -33.3% ~20,000) -100.0% (10,000) 84.6% 550,000 72.2% 520,000 1,240,OOC F HEALTH INSURANCE INTEREST INTERDEPARTMENTAUREIMB. TOTAL 49,365 2,994,636 3.044.001 30,000 890,000 920,000 30,OOC 0.0% 0 -1 6% -100.0% -1 6% (14,300) RECORDS MANAGEMENT (2) INTEREST INTERDEPARTMENTAL OTHER TOTAL p 25 1,030,400 613 2,500 955,500 0 -1 00.0% (2,500) -100.0% (955,500) 0.0% 0 -100.0% (958,000) 1,031,037 958,000 VEHICLE MAINTENANCE INTERDEPARTMENTAL INTER EST OTHER TOTAL 1,466,615 17,840 100.569 1,675,000 11,000 100,000 1,786,000 1,699,076 10,000 0 1,709,076 1,580,911 200,000 0 1,780,911 100,000 4,144,400 0 4,244,400 1.4% 24,076 -9.1% (1,000) -1 00.0% (100,000) -107.7% (76,924) 1,565,024 VEHICLE REPLACEMENT INTERDEPARTMENTAL INTEREST OTHER TOTAL 1,429,945 1,467,000 208,000 0 1,675,000 7.8% 113,911 -3.9% (8,000) 0.0% 0 6.3% 105,911 295,315 137,313 1,862,573 INFORMATION TECHNOLOGY INTEREST INTERDEPARTMENTAL OPERATING TRANSFER IN TOTAL 139,208 3,896,817 589 11 5,000 3,601,500 563,000 4,479,500 -1 3.0% (15.000) 9.0% 342.900 -100.0% (563,000) -5.3% (235,100) 4,036,594 TOTAL INTERNAL SERVICE FUNDS 12,968,946 13,863,500 I 11,900,087 -14.2% (1,963,413) EXHIBIT A CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2002-03 2003-04 IREDEVELOPMENT FUNDS VILLAGE OPERATIONS I DEBT SERVICE RENTAL INCOME TAX INCREMENT ADMINISTRATIVE FEES INTEREST OTHER OPERATING TRANSFER IN TOTAL VILLAGE LOW AND MOD INCOME HSNG TAX INCREMENT INTEREST OTHER TOTAL SCCRA OPERATIONS/ DEBT SERVICE TAX INCREMENT INTEREST OPERATING TRANSFER IN TOTAL SCCRA LOW AND MOD INCOME HSNG TAX INCREMENT INTEREST TOTAL 1 14,388 1,594.51 1 0 61,462 273,906 0 1,944,267 398,628 133,502 n 532.1 30 130,955 19,476 0 150,431 43,652 6,847 43,652 45,755 1,692,000 0 56,800 3,623 n 1,797.978 444,000 93,000 n 537,000 712,273 23,000 0 735,273 237,424 5.500 242,924 TOTAL REDEVELOPMENT FUNDS 2,670,460 3,313,175 ESTIMATED REVENUE 2004-05 83,055 1,776,000 0 73,000 4.000 0 1,936,055 466,000 60,000 n 526,000 91 1,497 25,000 0 936,497 303.833 7,000 310,833 3,709,385 AS % DIFFERENCE OF FY 03-04 2003-04 TO PROJECTED 2004-05 81.5% 37,300 5.0% 84,000 0.0% 0 29.0% 16,400 10.4% 377 0.0% 0 7.1% 138,077 5.0% 22,000 -35.5% (33,000) 0.0% 0 -2.1% (1 1,000) 28.0% 199,224 8,756 2,000 0.0% 0 0 201,224 28.0% 66,409 27.3% 1,500 28.0% 67,909 12.0% 396,210 TOTAL OPERATING $1 49,298,988 $1 53,093,427 $154,191,314 0.7% $ 1,097,887 I EXHIBIT A CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE 2003-04 2003-04 2001-02 2002-03 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES (1) BUDGET GENERAL FUND POLICY AND LEADERSHIP GROUP CITY COUNCIL 272,275 CITY MANAGER 1,080,772 COMMUNICATIONS 246,248 CITY CLERK 280,226 CITY ATTORNEY 939,657 CITY TREASURER 114,341 TOTAL POLICY/LEADERSHIP GROUP 2,933,519 ADMINISTRATIVE SERVICES ADMINISTRATION 386,758 FINANCE 2.1 57,099 HUMAN RESOURCES 1,461,503 RECORDS MANAGEMENT (2) 0 TOTAL ADMINISTRATIVE SERVICES 4,005,360 PUBLIC SAFETY POLICE 14,957,749 FIRE 10,293,823 TOTAL PUBLIC SAFETY 25,251,572 COMMUNITY DEVELOPMENT COMMUNITY DEVEL ADMlN 329,304 GEOGRAPHIC INFORMATION 273,199 ECONOMIC DEVELOPMENT 226,252 PLANNING 2,813,766 BUILDING 1.766.613 273,211 1,023,959 472.185 290,790 880,954 138.M)6 3.079.705 561,949 2,434.191 1,336,418 0 4.332.558 15,994,680 11,046,901 27,041,581 512,251 260,266 177,090 2,989,663 1.658.872 TOTAL COMMUNITY DEVELOPMENT 5,409,134 COMMUNITY SERVICES LIBRARY 6,936,523 CULTURAL ARTS PROGRAM 554,206 RECREATION 3,994,199 TRAILS MAINTENANCE 0 SENIOR PROGRAMS 401,419 5.598.162 7,454.751 664,406 4,256,322 739 558,141 265.809 305,953 1,192,248 1,162,763 635.888 780.71 1 285,400 309.1 37 950,530 971,382 147,339 168,950 3,477,214 3,698,896 563,763 710.648 2,449,541 2,601,498 1,598,802 2,028,938 0 0 4,612,106 5,341,084 17,515,613 17,646,410 11,924,210 11,595,742 29,439,823 29,242,152 469,7 16 636,600 291,079 31 1,772 182,228 183,735 3,363,521 3,230,939 1,660.987 1,809,656 5,987,531 6,172,702 6,256,927 8,162,232 668,810 711,739 4,535,969 4,611,663 46,185 69,925 511.572 697,114 TOTAL COMMUNITY SERVICES 11,888,347 12,934,359 14,019,463 14,252,673 2004-05 'RELIMINAR) BUDGET 332,40: 1,228,707 810,97C 124,215 1,010,674 161,684 3,668,653 610,743 2,599,435 1,963,055 792.656 5,985,889 19,640,247 13,256,073 33,098,320 528,556 296,850 185,073 3,415,121 1.906.938 6,332,536 8,343,336 691,099 4,934,953 76,269 786.817 14,832,476 7oIlYLK (UCL) 03-04 BUD TO 04-05 BUD 8.8% 5.7% 3.9% -59.8% 4.0% -4.3% -0.8% -14.1% -0.1% -2.3% 12.1% 12.4% 14.3% 13.2% -17.0% -4.8% 0.7% 5.7% 5.4% 2.6% 2.2% -2.9% 7.0% 9.1% 12.9% 4.1% EXHIBIT A CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE ' 2003-04 2003-04 2001-02 2002-03 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES (1) BUDGET PUBLIC WORKS PUBLIC WORKS ADMIN 492,064 757,423 ENGINEERING 4,312,623 5,652,977 FACILITIES MAINTENANCE 2,145,904 2,343,466 PARK MAINTENANCE 2,692,390 3,127,449 STREET MAINTENANCE 2,272,808 2,331,712 TRAFFIC SIGNAL MINT 584.348 502,210 TOTAL PUBLIC WORKS 12,500,137 14,715,239 NON-DEPARTMENTAL COMMUNITY PROMOTION BEACH PARKING COMMUNITY CONTRIBUTIONS HIRING CENTER HOSP GROVE PAYMENT PROPERTY TAX ADMIN FEE DUES 8 SUBSCRIPTIONS MlSC I TRANSFERS OUT ASSESSMENT SERVICES INFRASTRUCTURE REPLACE TRANh GOLF COURSE TRANSFER TRANSFER TO CIP TRANS TO STORM WATER PGM MANAGEMENT INCENTIVE PAY LEGAL SERVICES OTHER TOTAL NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND 308,798 0 65,235 83,400 800,000 285,775 46,386 1,302 13,923 3,000,000 25,000 0 21.840 83,475 800,000 326,069 48,379 24.918 15,121 3,500.000 0 600,000 1,500,000 35,000,000 1,873.19O 0 0 0 0 109,900 17 421 324.443 722,308 800,032 5,963,777 5,210,161 2,625,742 2,803,465 3,130,574 3,532,676 2,540,365 2,611,249 737.087 776.198 0 0 102.000 82.506 800,000 332,000 72,150 563,000 35.400 3,605,000 0 0 0 0 250.000 0 509,100 36,000 0 85,849 800,000 332,000 72,150 563,000 35,400 3,605,000 0 0 1,263,600 575.000 250,000 0 . - . , . . . 7,995,430 40,879,145 5,842,056 8,127,299 69,963,499 108,580,749 79,116,066 82,568,587 0 0 0 2,300,000 69,963,499 108,580,749 79,118,066 84,868,567 2004-05 'RELI MI NAR) BUDGET 869,734 6,262,145 2,967,015 3,557,094 2,496,233 720.991 16,693,212 509,100 36,000 0 85,000 800.000 355,000 72,900 0 35,400 3,830.000 0 800.000 0 580,000 250,000 0 7,353,400 88,164,488 2.300.000 90,464,488 %INCR (DEC) 03-04 BUD TO 04-05 BUD 8.7% 20.2% 6.5% 0.7% 4.4% -7.1% 7.4% 0.0% 0.0% -1.0% 0.0% 6.9% 1 .O% -100.0% 0.0% 6.2% -1 00.0% 0.9% 0.0% -9.5% 6.8% 0.0% 6.6% EXHIBIT A CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE 2003-04 2003-04 2001-02 2002-03 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES (1) BUDGET SPECIAL REVENUE FUNDS I POLICE ASSET FORFEITURE COPS FUND POLICE GRANTS HOUSING SECTION 8 HOUSING TRUST LIBRARY ENDOWMENT FUND LIBRARY GIFTSIBEQUESTS LIBRARY STATE GRANTS TREE MAINTENANCE MEDIAN MAINTENANCE STREET LIGHTING BUENA VISTA CRK CHNL MNT LLD #2 ARTS SPECIAL EVENTS SENIOR NUTRITION (3) SENIOR DONATIONS CDBG ENTITLEMENT COMMUNITY ACTIVITY GRANTS CULTURAL ARTS PROGRAM SISTER CITY DONATIONS ARTS GENIGALLERY DONATIONS RECREATION DONATIONS TOTAL SPECIAL REVENUE FUNDS 5,724 286.734 180.975 3,867,573 185,874 9.875 30,537 0 642,800 533,901 882,780 25,809 0 19,087 207,044 35,557 477,163 57.714 34,144 15 58,120 6,735 7,548,161 ENTERPRISE FUNDS WATER OPERATIONS 18,892,192 RECYCLED WATER OPERATIONS 1,476.399 SANITATION OPERATIONS 6,498,962 SOLID WASTE MANAGEMENT (4) 983,111 GOLF COURSE 168,967 TOTAL ENTERPRISE FUNDS 28,019,631 INTERNAL SERVICE FUNDS I WORKERS COMP SELF INSURANCE 1,093,092 RISK MANAGEMENT 1,373,974 HEALTH INSURANCE 2,464.031 RECORDS MANAGEMENT (2) 969,761 VEHICLE MAINTENANCE 1,640,651 VEHICLE REPLACEMENT 1 ,179,122 INFORMATION TECHNOLOGY 3,631,939 78,210 180,152 190,410 5,019,097 207.488 11,850 80,326 56.248 674,596 536,782 934,503 88,418 0 60,109 0 25,425 805,721 95,355 5,174 0 19,563 16,969 9,086,396 19.038.158 1,552,164 6,248,394 231 1,923 93,341 29,443,984 2.124,381 1,331,903 2.674,714 905,870 1,644,950 1,140,044 4,082,886 230,000 230,000 130,000 5,873,505 248.774 12,000 115,000 0 644.815 461,100 1,002,093 70,600 16,000 50,000 0 20,000 765,461 50,000 20,000 0 1,000 10,000 9,950,348 403,900 182,915 30,000 5,549,702 256,340 6,000 67,620 0 697,979 504,841 1,165,034 1,629 0 36,103 0 0 654,408 60,000 20,000 2,000 13,500 n 9,651,971 20,827,346 20,874.869 2,038,893 1,913.1 17 7,732.819 8,029.909 1,311,085 1,521,511 233,510 300,000 32,143,653 32,639,406 2,596,429 1,327,605 1,495,051 1,505,019 1,521,636 1,521,636 958.945 1,126,466 1,816,783 1,889,420 828.000 873,000 5,475,520 5,461,325 TOTAL INTERNAL SERVICE FUNDS 12,352,570 13,904,748 14,692.364 13,704,471 2004-05 'RELIMINAR' BUDGET 57,OOC 233.71C c 6,042,631 256,983 12,000 0 0 742,682 701,469 985.400 171,800 28,205 45,596 0 0 688,111 50,000 15,000 3,400 14,000 8,700 10,056,687 20,945,004 1,730,385 6,859.054 1,784.312 230.000 31,548,755 2.223,498 1,494,712 1,013,268 0 1.889.696 1.808,ooo 5,010,367 13,439,541 %INCR (DEC) 03-04 BUD TO 04-05 BUD -85.9% 27.8% -100.0% 8.9% 0.3% 100.0% -100.0% 6.4% 38.9% -15.4% 10446.3% 26.3% 0.0% 5.2% -16.7% -25.0% 70.0% 3.7% 4.2% 0.3% -9.6% -14.6% 17.3% -23.3% -3.3% 67.5% -0.7% -33.4% -100.0% 0.0% 107.1% -8.3% -1.9% EXHIBIT A 2004-05 PRELIMINARY BUDGET 1,530,922 117,005 435,526 54,293 2.1 37,746 CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE 03-04 BUD TO 04-05 BUD -2.1% 18.2% 137.3% 42.4% 13.5% 2003-04 2003-04 2001-02 2002-03 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES (I) BUDGET REDEVELOPMENT VILLAGE OPERATIONS I DEBT SVC 2,102,507 2,286,765 1,546,043 1,563,217 VILLAGE LOWlMOD INCOME HSNG 45,170 107,646 51,300 98,948 SCCRA OPERATIONS I DEBT SVC 63,072 168,527 347,964 183,528 SCCRA LOWlMOD INCOME HSNG 19,345 16,496 24,000 38,117 TOTAL REDEVELOPMENT 2,230,094 2,579,434 1,969,307 1,883.810 TOTAL OPERATING FUNDS 120,133,955 163,595,307 137,873,738 142.748,245 147.647,217 3.4% (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 FY02 and converted back to a General fund in FY05. (3) Senior Nutrition Grant was moved to the General fund in 2002-03. (4) Storm Water Protection Program was converted from a Special Revenue fund to an Enterprise fund during N04. Exhibit B CITY OF CARLSBAD CAPITAL FUNDS PROJECTED FUND BALANCES FOR FY 2003-2004 JULY I, 2003 ESTIMATED JUNE 30,2004 UNRESERVED ESTIMATED ESTIMATED DEBT SERVICE PROJECTED FUND BALANCE REVENUES EXPENDITURES LOANS & OTHER BALANCE ASSESSMENT DISTRICTS BTD#2 - POINSElTIA LANOAVIARA PKWh BTD#3 - CANNON ROAD WEST CFD #I -CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE 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 VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETBIKE TRANSNET/HIGHWAY TRANSNET/LOCAL TRANSNETKTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 652.205 5,078,146 3,304,294 32,973,206 26,472,040 4,521,749 47,224,449 1,390,000 67,587 31 6,217 10,844,364 2,226,222 71 9,956 1,747,320 1,300,790 1,445,177 667,453 7,951,336 33,992,248 1,397,050 1 ,I 06,000 5,1 54,252 32,266,072 18,972,792 305,389 7,783,846 42,352 1,880,369 8,059,803 358,132 10,093,861 14,725,000 334,300 2,870,247 42,213 5,090,033 10,471,582 2,700,901 1,955,370 0 1,969,499 5,637 4,022,503 43,106 54,092 52,934 582,541 257,875 700,025 1,094,823 5,498,664 0 0 2,039,522 2,450,964 4,236,406 3,240 952,059 698 35,484 3,453,321 6,558 2,600,991 24,427,256 323,968 1,134,518 1,222,341 147,424 27,791,687 713,327 2,620,615 949,406 155,905 0 449,151 50,913 452 25,473 0 0 0 149,156 12,177,050 15,205 5 4,142,920 570,461 1,778,312 0 99,246 20,248 70,131 5.61 9,422 87,082 950,478 15,757,760 218,779 0 1,000,000 331,309 0 0 0 0 0 0 0 0 0 0 704,000 1,000,000 0 0 0 0 0 0 936,256 1,500,000 158,560 0 0 0 0 0 2,030,428 3,862,078 443,758 6,813,875 1,124,166 37,584,506 9,151,935 6,509,323 46,559,204 440,594 1,881,181 321,854 14,417,716 2,218,415 773,596 1,774,781 1,179,331 703,052 1,367,478 8,897,003 27,313,862 1,381,845 1,105,995 3,050,854 33,210,319 19,930,886 150,069 8,636,659 22,802 1,845,722 5,893,702 277,608 9,713,946 19,532,418 WATER - REPLACEMENT 13,050,001 3,536,722 946,106 2,163,790 13,476,827 TOTAL 298,089,678 81,489,565 77,968,762 13,905,200 287,705,281 Exhibit 6 CITY OF CARLSBAD CAPITAL FUNDS PROJECTED FUND BALANCES FOR PI 2004-2005 JULY 1,2004 PROJECTED ESTIMATED FUND BALANCE REVENUES ASSESSMENT DISTRICTS BTD#2 - POINSETTIA LANE/AVIARA PKWY BTD#3 - CANNON ROAD WEST CFD #1 - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE 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 VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNET/BlKE TRANSNET/HlGHWAY TRANSNET/LOCAL TRANSNETKTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 443,758 6,813,875 1,124,166 37,584,506 9,151,935 6,509,323 46,559,204 440,594 1,881,181 321,854 14,417.71 6 2,218,415 773,596 1,774,781 1,179,331 703,052 1,367,478 8,897,003 27,313,862 1,381,845 1,105,995 3,050,854 33,210,319 19,930,886 150,069 8,636,659 22,802 1,845,722 5,893,702 277,608 9,713,946 19,532,418 0 2,148,660 0 7,336,242 28,781 2,519,687 2,430,854 0 1,870,000 0 3,713,150 986,854 85,364 459,985 151,235 491,095 461,097 1,951,925 5,903,080 0 0 71 6,106 1,818,348 2,200,000 0 1,395,075 120,000 0 3,019,678 0 2,855,013 6,792,997 WATER - REPLACEMENT 13,476,827 2,396,860 TOTAL 287,705,281 51,852,086 2003-2004 CONTINUING NEW APPROPR. APPROPR. 357,751 1,397,831 30,177 64,895 7,510,696 4,206,837 3,537,986 90,205 1,866,004 0 669,905 451,693 0 1,660,251 0 0 216,005 4,619,040 22,923,882 1,845 254,995 1,786,616 7,512,096 10,094,863 0 2,414,634 21,137 1,753,831 3,918,699 220,749 4,593,610 16,545,052 0 1,190,000 925,000 210,000 0 805,000 9,033,800 350,000 1,870,000 35,000 1,037.000 1,041,854 0 0 0 0 550.000 1,365,524 6,158,308 1,380,000 851,000 0 12,309,941 2,406,014 0 1,937,708 120,000 0 3,963,000 0 853,500 159,527 7,550,802 3,960,488 106,272,087 52,512,664 2004-2005 TOTAL CIP APPROPR. 357,751 2,587,831 955,177 274,895 7,510,696 5,011,837 12,571,786 440,205 3,736,004 35,000 1,706,905 1,493,547 0 1,660,251 0 0 766,005 5,984,564 29,082,190 1,381,845 1,105,995 1,786,616 19,822,037 12,500,877 0 4,352,342 141,137 1,753,831 7,881,699 220,749 5,447,110 16,704,579 11,511,290 158,784,751 JUNE 30,2005 PROJECTED BALANCE 86,007 6,374,704 168,989 44,645,853 1,670,020 4,017,173 36,418,272 389 15,177 286,854 16,423,961 1,711,722 858,960 574,515 1,330,566 1,194,147 1,062,571 4,864,364 4,134,752 0 0 1,980,344 15,206,630 9,630,009 150,069 5,679,391 1,665 91.891 1,031,681 56,859 7,121,848 9,620,836 4,362,397 180,772,616 53 Exhibit B CITY OF CARLSBAD CAPITAL FUNDS REVENUES ACTUAL AND ESTIMATED 2000-2001 2001 -2002 2002-2003 2003-2004 2004-2005 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FUND REVENUES REVENUE REVENUE REVENUE REVENUE ASSESSMENT DISTRICTS BTD#2 - POINSETTIA LANVAVIARA PKWY BTD#3 - CANNON ROAD WEST CFD #1 - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE 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 VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNET/BIKE TRANSNET/HIGHWAY TRANSNET/LOCAL TRANSNETKTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 99,664 1,196,818 294,547 13,431,776 1,817,868 2,058,987 5,470,004 0 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 0 1,193,530 6,273,019 3,517,708 216,490 2,274,739 0 85,482 2,186,597 127,491 4,746,830 652,387 1,254,130 3,850,521 200,151 8,150,245 3,268,765 2,078,795 4,278,498 0 342,827 1,070,012 3,676,384 146,865 108,709 532,417 282,916 538,255 979,445 1,177,836 6,741,413 130,718 0 800,554 9,472,325 3,171,976 7,941 1,242,674 0 52,570 2,508,640 70,313 2,546,628 16,722,716 196,887 926,437 404,647 6,500,700 14,050,Ol 8 1,851 ,I 18 36,905,004 600,000 208,914 244,735 4,114,930 1,098,283 64,865 245,976 1,520,779 475,468 9,593 739,807 6,436,638 18,552 146,305 1,308,913 4,855,445 3,115,527 302,968 1,762,612 11 3,689 1,205,103 2,878,396 15,933 2,192,288 6,869,702 334,300 2,870,247 42,213 5,090,033 10,471,582 2,700,901 1,955,370 0 1,969,499 5,637 4,022,503 43,106 54,092 52,934 582,541 257,875 700,025 1,094,823 5,498,664 0 0 2,039,522 2,450,964 4,236,406 3,240 952,059 698 35,484 3,453,321 6,558 2,600,991 24,427,256 0 2,148,660 0 7,336,242 28,781 2,519,687 2,430,854 0 1,870,000 0 3,713,l 50 986,854 85,364 459,985 151,235 491,095 46 1,097 1,951,925 5,903,080 0 0 716,106 1,818,348 2,200,000 0 1,395,075 120,000 0 3,019,678 0 2,855,013 6,792,997 WATER - REPLACEMENT 4,159,407 3,457,473 4,667,424 3,536,722 2,396,860 TOTAL CAPITAL FUNDS 69,570,013 79,l 53,030 106,047,656 81,489,565 51,852,086 Note: Revenues include interfund loans and transfers in. Exhibit B CITY OF CARLSBAD CAPITAL FUNDS BUDGET EXPENDITURE SCHEDULE ASSESSMENT DISTRICTS BTD#2 - POINSETTIA LANWAVIARA PKWL BTD#3 - CANNON ROAD WEST CFD #1 - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE 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 VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNET/BIKE TRANSNET/HlGHWAY TRANSNET/LOCAL TRANSNETKTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 1,136,432 1,169,980 133,140 17,048,549 1,100,912 1.874.437 1,475,917 81,387 342,827 2,449,474 842,691 296,300 3,868 204,833 424,109 624,978 130,995 394,569 5,954,871 497,112 0 332,469 9,321,046 2,081,600 146,114 193,236 0 113,126 5,470,554 699,451 2,494.1 92 533.672 2001 -2002 2002-2003 2003-2004 FUND ACTUAL ACTUAL ESTIMATED 542,747 398.374 1,089,644 366,929 563,394 6,849,077 3,069,646 702,114 93,341 208,510 475,336 1,290,712 199,220 14,447 59,593 366,504 4,379,059 0 574,220 3,758,660 53,069 0 1,219,939 2,337.279 955.688 136,933 402,011 70,104 128,474 1,030,601 486,421 1,839,043 9,973,773 1,134,518 2,222,341 478,733 27,791,687 713,327 2,620,615 949,406 155,905 0 449,151 50,913 452 25,473 704,000 1,000,000 0 149,156 12,177,050 15,205 5 4,142,920 1,506,717 3,278,312 158,560 99,246 20,248 70,131 5,619,422 87,082 2,980,906 19,619,838 WATER - REPLACEMENT 1,643,575 3,155,390 3,109,896 TOTAL CAPITAL FUNDS 59,882,858 46,247,505 91,873,962 2004-2005 CONTINUING NEW TOTAL CIP APPROPR. APPROPR. APPRO P R. 2003-2004 2004-2005 357,751 1,397,831 30,177 64,895 7,510,696 4,206,837 3,537,986 90,205 1,866,004 0 669,905 451,693 0 1,660,251 0 0 216,005 4,619,040 22,923,882 1,845 254,995 1,786,616 7,512,096 10,094,863 0 2,414,634 21,137 1,753,831 3,918,699 220,749 4,593,610 16,545,052 0 1,190,000 925,000 210,000 0 805,000 350,000 1,870,000 35,000 1,037,000 1,041,854 0 0 0 0 550,000 1,365,524 1,380,000 851,000 0 12,309,941 2,406,014 0 i,937,7oa 120,000 0 3,963,000 0 853,500 159,527 9,033,aoo 6,158,308 357,751 2,587,831 955,177 274,895 7,510,696 5,011,837 12,571,786 440,205 3,736,004 35,000 1,706,905 1,493,547 0 1,660,251 0 0 766,005 5,984,564 29,082,190 1,381,845 1,105,995 1,786,616 19,822,037 12,500,877 0 4,352,342 141,137 1,753,831 7,881,699 220,749 5,447,110 16,704,579 7,550,802 3,960,4aa 11,511,290 106,272,087 52,512,664 158,784,751 Exhibit B CITY OF CARLSBAD CAPITAL FUNDS ANALYSIS OF AVAILABLE BALANCES 2004 TO BUILDOUT )YEAR 1 2004 - 2005 I FUND ASSESSMENT DISTRICTS BTD#2 - POINSETTIA LANWAVIARA PKWY BTDW - CANNON ROAD WEST CFD #1 - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE 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 VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNET/BIKE TRANSNETIHIGHWAY TRANSNET/LOCAL TRANSNETETP WATER - MAJOR FACILITY WATER - RECYCLED WATER BEGINNING BAL 7/1/2003 86,007 5,416,044 1,093,989 37,519,611 1,641,239 2,302,486 43,021,218 350,389 15,177 321,854 13,747,811 1,766,722 773,596 114,530 1,179,331 703,052 1,151,473 4,277,963 4,389,980 1,380,000 851,000 1,264,238 25,698,223 9,836,023 150,069 6,222,025 1,665 91,891 1,975,003 56,859 5,120,336 2,987,366 REVENUE 0 2,148,660 0 7,336,242 28,781 2,519,687 2,430,854 0 1,870,000 0 3,713,150 986,854 85,364 459,985 151,235 491,095 461,097 1,951,925 5,903,080 0 0 71 6,106 1,818,348 2,200,000 0 1,395,075 120,000 0 3,019,678 0 2,855,013 6,792,997 EXPENDITURES 0 1,190,000 925,000 210,000 0 805,000 9,033,800 350,000 1,870,000 35,000 1,037,000 1,041,854 0 0 0 0 550,000 1,365,524 6,158,308 1,380,000 851,000 0 12,309,941 2,406,014 0 1,937,708 120,000 0 3,963,000 0 853,500 159,527 ENDING 86,007 6,374,704 168,989 44,645,853 1,670,020 4.01 7,173 36,418,272 389 15,177 286,854 16,423,961 1,711,722 858,960 574,515 1,330,566 1,194,147 1,062,571 4,864,364 4,134,752 0 0 1,980,344 15,206,630 9,630,009 150,069 5,679,391 1,665 91,891 1,031,681 56,859 7,121,848 9,620,836 WATER - REPLACEMENT 5,926,025 2,396,860 3,960,488 4,362,397 TOTAL 181,433,194 51,852,086 52,512,664 180,772,616 (1) Beginning balance on 7/1/2004 is net of continuing appropriations. Exhibit B CITY OF CARLSBAD CAPITAL FUNDS ANALYSIS OF AVAILABLE BALANCES 2004 TO BUILDOUT YEAR 2 2005 - 2006 I BEGINNING FUND BAL 7/1/2004 REVENUE EXPENDITURES ENDING ASSESSMENT DISTRICTS 86,007 0 0 86,007 BTD#3 - CANNON ROAD WEST 168,989 558,206 0 727,195 CFD #1 - CITYWIDE 44,645,853 4,888,71 i 9,460,000 40,074,563 CFD #2 - RANCHO SANTA FE ROAD 1,670,020 58,964 0 1,728,984 GAS TAX 4,017,173 1,700,000 785,000 4,932,173 GENERAL CAPITAL CONST. 36,418,272 1,060,000 312,500 37,165,772 GRANTS - FEDERAL 15,177 1,804,000 1,804,000 15,177 GRANTS - STATE 286,854 0 0 286,854 INFRASTRUCTURE REPLACEMENT 16,423,961 3,824,545 985,000 19,263,506 OTHER 1,711,722 15,060,000 16,568,000 203,722 PARK FEE ZONES 5,13,16 858,960 137,544 0 996,503 PARK-IN-LIEU NE 574,515 191,105 0 765,620 PARK-IN-LIEU SE 1.1 94,147 491,095 0 1,685,242 PARK-IN-LIEU SW 1,062,571 298,880 0 1,361,451 PLANNED LOCAL DRAIN'G 4,864,364 1,419,895 0 6,284,259 PUBLIC FACILITIES FEE 4,134,752 5,197,810 5,436,000 3,896,563 REDEVELOPMENT VILLAGE 0 0 0 0 REDEVELOPMENT SCCRDA 0 0 0 0 SEWER BENEFIT AREAS 1,980,344 912,526 0 2,892,870 SEWER CONNECTION 15,206,630 5,509,838 11,392,034 9,324,434 TDA 150,069 0 0 150,069 TRAFFIC IMPACT FEE 5,679,391 1,680,286 1,078,430 6,281,247 TRANSNEnBlKE 1,665 0 0 1,665 TRANSNET/HIGHWAY 91,891 0 0 91,891 TRANSNET/LOCAL 1,031,681 2,550,000 2,600,000 981,681 TRANSNETETP 56,859 0 0 56,859 8,561,240 WATER - MAJOR FACILITY 7,121,848 2,856,091 1,416,700 WATER - RECYCLED WATER 9,620,836 7,795,625 7,929,932 9,486,529 WATER - REPLACEMENT 4,362.397 9,691,597 5,899,500 8,154,494 180,772,616 99,779,590 99,190,284 181,361,922 TOTAL BTD#2 - POINSETTIA LANWAVIARA PKWY 6,374,704 1,133,153 0 7,507,857 GOLF COURSE 389 28,650,000 28,650,000 389 PARK-IN-LIEU NW 1,330,566 109,720 860,000 580,286 SEWER REPLACEMENT 9,630,009 2,200,000 4,013,188 7,816,821 Exhibit B CITY OF CARLSBAD CAPITAL FUNDS ANALYSIS OF AVAILABLE BALANCES 2004 TO BUILDOUT YEAR 3 2006 - 2007 I BEG INN I NG FUND BAL 7/1/2005 REVENUE EXPENDITURES ENDING ASSESSMENT DISTRICTS 86,007 0 0 86,007 BTD#2 - POINSETTIA LANWAVIARA PKWY 7,507,857 11 4,003 0 7,621,860 BTD#3 - CANNON ROAD WEST 727,195 602,918 600,000 730,113 CFD #1 - CITYWIDE 40,074,563 3,829,559 10,752,000 33,152,122 CFD #2 - RANCHO SANTA FE ROAD 1,728,984 690,146 0 2,419,130 GAS TAX 4,932,173 1,750,000 985,000 5,697,173 1,250,000 0 38,415,772 GENERAL CAPITAL CONST. 37,165,772 GOLF COURSE 389 0 0 389 GRANTS - FEDERAL 15,177 0 0 15,177 GRANTS - STATE 286,854 0 0 286,854 INFRASTRUCTURE REPLACEMENT 19,263,506 3,939,281 0 23,202,786 OTHER 203,722 60,000 60,000 203,722 PARK FEE ZONES 5,13,16 996,503 197,551 0 1,194,054 PARK-IN-LIEU NE 765,620 453,319 0 1,218,939 PARK-IN-LIEU NW 580,286 269,851 0 850,137 PARK-IN-LIEU SE 1,685,242 457,763 1,250,000 893,005 PARK-IN-LIEU SW 1,361,451 32,222 0 1,393,673 PLANNED LOCAL DRAIN'G 6,284,259 1,185,160 0 7,469,419 8,397,788 PUBLIC FACILITIES FEE 3,896,563 4,501,225 0 REDEVELOPMENT VILLAGE 0 0 0 0 REDEVELOPMENT SCCRDA 0 0 0 0 SEWER BENEFIT AREAS 2,892,870 799,240 2,000,000 1,692,110 SEWER CONNECTION 9,324,434 5,292,253 5,933,944 8,682,743 SEWER REPLACEMENT 7,816,821 4,200,000 2,707,523 9,309,298 TDA 150,069 0 0 150,069 TRAFFIC IMPACT FEE 6,281,247 1,648,903 370,000 7,560,150 TRANSN ET/BI KE 1,665 0 0 1,665 TRANSN ET/HlGH WAY 91,891 0 0 91,891 TRANSNET/LOCAL 981,681 3,609,000 3,459,000 1,131,681 TRANSN ET/STP 56,859 0 0 56,859 WATER - MAJOR FACILITY 8,561,240 2,241,676 355,000 10,447,916 WATER - RECYCLED WATER 9,486,529 160,000 7,409,527 2,237,002 WATER - REPLACEMENT 8,154,494 9,737,229 500,000 17,391,723 181,361,922 47,021,299 36,381,994 192,001,227 TOTAL Exhibit B CITY OF CARLSBAD CAPITAL FUNDS ANALYSIS OF AVAILABLE BALANCES 2004 TO BUILDOUT YEAR 4 2007 - 2008 i BEGINNING FUND BAL 7/1/2006 REVENUE EXPENDITURES ENDING ASSESSMENT DISTRICTS 86,007 0 0 86,007 BTD#2 - POINSETTIA LANWAVIARA PKWY 7,621,860 0 0 7,621,860 BTD#3 - CANNON ROAD WEST 730,113 384,740 0 1,114,853 CFD #1 - CITYWIDE 33,152,122 2,725,541 10,752,000 25,125,664 CFD #2 - RANCHO SANTA FE ROAD 2,419,130 41 1,000 0 2,830,130 GAS TAX 5,697,173 1,800,000 800,000 6,697,173 GENERAL CAPITAL CONST. 38,415,772 320,000 0 38,735,772 GOLF COURSE 389 0 0 389 GRANTS - FEDERAL 15,177 0 0 15,177 GRANTS - STATE 286,854 0 0 286,854 INFRASTRUCTURE REPLACEMENT 23,202,786 4,057,459 0 27,260,246 OTHER 203,722 80,000 80,000 203,722 PARK-IN-LIEU NE 1,218,939 191,105 0 1,410,043 PARK-IN-LIEU NW 850,137 62,273 320,000 592,411 PARK-IN-LIEU SE 893,005 0 0 893,005 PARK-IN-LIEU SW 1,393,673 2,222 0 1,395,895 PLANNED LOCAL DRAIN'G 7,469,419 447,054 0 7,916,473 PUBLIC FACILITIES FEE 8,397,788 3,168,491 0 11,566,279 REDEVELOPMENT VILLAGE 0 0 0 0 REDEVELOPMENT SCCRDA 0 0 0 0 SEWER BENEFIT AREAS 1,692,110 341,790 100,000 1,933,900 SEWER CONNECTION 8,682,743 668,518 935,506 8,415,754 SEWER REPLACEMENT 9,309,298 2,200,000 704,555 10,804,743 TDA 150,069 0 0 150,069 8,159,105 TRAFFIC IMPACT FEE 7,560,150 968,955 370,000 TRANSNET/BlKE 1,665 0 0 1,665 TRANSNEnHlGHWAY 91,891 0 0 91,891 981,681 TRANSNET/LOCAL 1,131,681 2,450,000 2,600,000 TRANSN ET/STP 56,859 0 0 56,859 WATER - MAJOR FACILITY 10,447,916 936,659 2,012,300 9,372,275 WATER - RECYCLED WATER 2,237,002 160,000 159,527 2,237,475 WATER - REPLACEMENT 17,391,723 2,401,249 652,900 19,140,072 TOTAL 192,001,227 23,920,808 19,486,788 196,435,247 PARK FEE ZONES 5,13,16 1,194,054 143,751 0 1,337,805 Exhibit B CITY OF CARLSBAD CAPITAL FUNDS ANALYSIS OF AVAILABLE BALANCES 2004 TO BUILDOUT YEAR 5 2008 - 2009 I BEGINNING FUND BAL 7/1/2007 REVENUE EXPENDITURES ENDING ASSESSMENT DISTRICTS 86,007 0 0 86,007 BTD#2 - POINSETTIA LANWAVIARA PKWY 7,621,860 0 0 7,621,860 CFD #1 -CITYWIDE 25,125,664 2,834,136 110,000 27,849,800 CFD #2 - RANCHO SANTA FE ROAD 2,830,130 248,250 0 3,078,380 GAS TAX 6,697,173 2,050,000 2,230,000 6,517,173 38,735,772 0 0 38,735,772 GENERAL CAPITAL CONST. GOLF COURSE 389 0 0 389 GRANTS - FEDERAL 15,177 0 0 15,177 GRANTS - STATE 286,854 0 0 286,854 INFRASTRUCTURE REPLACEMENT 27,260,246 4,179,183 0 31,439,429 OTHER 203,722 0 0 203,722 PARK FEE ZONES 5,13,16 1,337,805 143,751 0 1,481,556 PARK-IN-LIEU NE 1,410,043 191,105 0 1,601,148 PARK-IN-LIEU NW 592.41 1 121,581 0 713,992 PARK-IN-LIEU SE 893,005 0 0 893,005 PARK-IN-LIEU SW 1,395,895 2,222 0 1,398,117 PLANNED LOCAL DRAIN'G 7,916,473 552,752 0 8,469,225 11,566,279 2,417,954 0 13,984,234 PUBLIC FACILITIES FEE REDEVELOPMENT VILLAGE 0 0 0 0 REDEVELOPMENT SCCRDA 0 0 0 0 SEWER BENEFIT AREAS 1,933,900 341,790 355,000 1,920,690 SEWER CONNECTION 8,415,754 650,686 937,169 8,129,271 SEWER REPLACEMENT 10,804,743 2,200,000 673,543 12,331,200 TDA 150,069 0 0 150,069 8,847,139 TRAFFIC IMPACT FEE 8,159,105 1,058,034 370,000 TRANSNET/BIKE 1,665 0 0 1,665 TRANSNET/HIGHWAY 91,891 0 0 91,891 TRANSNET/LOCAL 981,681 1,193,154 1,370,000 804,835 TRANSNETKTP 56,859 0 0 56,859 WATER - MAJOR FACILITY 9,372,275 4,010,862 11,475,000 1,908,137 WATER - RECYCLED WATER 2,237,475 160,000 159,527 2,237,948 17,699,572 WATER - REPLACEMENT 19,140,072 2,460,000 3,900,500 TOTAL 196,435,247 25,200,201 21,580,739 200,054,709 BTD#3 - CANNON ROAD WEST 1,114,853 384,740 0 1,499,593 Exhibit B CITY OF CARLSBAD CAPITAL FUNDS ANALYSIS OF AVAILABLE BALANCES 2004 TO BUILDOUT YEAR 6-1 0 2009 - 201 4 I BEGINNING FUND BAL 7/1/2008 REVENUE EXPENDITURES ENDING ASSESSMENT DISTRICTS 86,007 0 0 86,007 BTD#2 - POINSETTIA LANWAVIARA PKWY 7,621,860 2,900,160 0 10,522,020 BTD#3 - CANNON ROAD WEST 1,499,593 1,547,241 1,000,000 2,046,834 CFD #1 -CITYWIDE 27,849,800 4,396,342 14,918,000 17,328,142 CFD #2 - RANCHO SANTA FE ROAD 3,078,380 628,900 0 3,707,280 1,842,173 GAS TAX 6,517,173 10,510,000 15,185,000 GENERAL CAPITAL CONST. 38,735,772 0 31 ,116,000 7,619,772 GOLF COURSE 389 0 0 389 GRANTS - FEDERAL 15,177 0 0 15,177 GRANTS - STATE 286,854 0 0 286,854 INFRASTRUCTURE REPLACEMENT 31,439,429 20,500,000 2,500,000 49,439,429 OTHER 203,722 0 0 203,722 PARK FEE ZONES 5,13,16 1,481,556 870,642 0 2,352,198 PARK-IN-LIEU NE 1,601,148 1,168,851 0 2,769,999 PARK-IN-LIEU NW 713,992 71 1,696 600,000 825,688 PARK-IN-LIEU SE 893,005 0 0 893,005 PARK-IN-LIEU SW 1,398,117 573,315 0 1,971,432 PLANNED LOCAL DRAING 8,469,225 3,279,291 2,283,000 9,465,516 PUBLIC FACILITIES FEE 13,984,234 12,440,389 29,287,177 (2,862,555) REDEVELOPMENT VILLAGE 0 851,215 851,215 0 REDEVELOPMENT SCCRDA 0 0 0 0 SEWER BENEFIT AREAS 1,920,690 2,032,852 0 3,953,542 SEWER CONNECTION 8,129,271 2,826,742 4,656,782 6,299,231 SEWER REPLACEMENT 12,331,200 11,000,000 4,504,612 18,826,588 TDA 150,069 0 0 150,069 TRAFFIC IMPACT FEE 8,847,139 5,254,696 4,085,000 10,016,835 TRANSNET/BIKE 1,665 0 0 1,665 TRANSNET/HlGHWAY 91,891 0 0 91,891 TRANSN ET/LOCAL 804,835 0 0 804,835 TRANSNETKTP 56,859 0 0 56,859 1,282,800 WATER - MAJOR FACILITY 1,908,137 6,673,762 7,299,100 WATER - RECYCLED WATER 2,237,948 765,000 764,013 2,238,935 WATER - REPLACEMENT 17,699,572 12,800,000 3,625,660 26,873,912 TOTAL 200,054,709 101,731,093 122,675,559 179,110,243 Exhibit B CITY OF CARLSBAD CAPITAL FUNDS ANALYSIS OF AVAILABLE BALANCES 2004 TO BUILDOUT 2014 to Bulldout I BEGINNING FUND ASSESSMENT DISTRICTS BTD#2 - POINSETTIA LANUAVIARA PKWY BTD#3 - CANNON ROAD WEST CFD #1 - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE 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 VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNET/BIKE TRANSNET/HIGHWAY TRANSNET/LOCAL TRANSNETETP WATER - MAJOR FACILITY WATER - RECYCLED WATER BAL 7/1/2013 86,007 10,522,020 2,046,834 17,328,142 3,707,280 1,842,173 7,619,772 389 15,177 286,854 49,439,429 203,722 2,352,198 2,769,999 825,688 893,005 1,971,432 9,465,516 (2,862,555) 0 0 3,953,542 6,299,231 18,826,588 150,069 10,016,835 1,665 91,891 804,835 56,859 1,282,800 2,238,935 REVENUE 0 2,213,460 27,600 2,205,255 0 16,643,344 0 17,737,200 0 0 25,200,000 430,000 569,950 1,312,458 907,412 0 415,542 3,687,669 6,523,499 0 451,000 1,513,994 1,758,276 16,477,592 0 2,913,848 0 0 0 0 3,913,226 0 EXPENDITURES 0 9,583,344 400,000 10,778,000 0 16,000,000 0 17,737,200 0 0 5,000,000 430,000 2,626,000 4,000,000 1,280,000 800,000 2,300,000 12,215,000 5,193,000 0 451,000 3,277,592 2,172,191 7,989,076 0 6,030,000 0 0 0 0 3,624,900 0 ENDING 86,007 3,152,136 1,674,434 8,755,397 3,707,280 2,485,517 7,619,772 389 15,177 286,854 69,639,429 203,722 296,148 82,457 453,101 93,005 86,974 938,185 (1,532,056) 0 0 2,189,944 5,885,316 27,315,104 150,069 6,900,683 1,665 91,891 804,835 56,859 1,571,126 2,238,935 WATER - REPLACEMENT 26,873,912 21,620,000 2,762.1 00 45,731,812 TOTAL 179,110,243 126,521,325 114,649,403 190,982,165 Exhibit E CITY OF CARLSBAD CAPITAL FUNDS ANALYSIS OF AVAILABLE BALANCES 2004 TO BUILDOUT GRAND TOTALS ALL YEARS 1 BEGINNING TOTAL TOTAL FUND BALANCE REVENUE EXPENDITURES ENDING ASSESSMENT DISTRICTS 86,007 0 0 86,007 BTD#2 - POINSETTIA LANWAVIARA PKWY BTD#3 - CANNON ROAD WEST CFD #1 - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE 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 VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETBIKE TRANSNET/HIGHWAY TRANSNET/LOCAL TRANSNETKTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 5,416,044 1,093,989 37,519,611 1,641,239 2,302,486 43,021,218 350,389 15,177 321,854 13,747,811 1,766,722 773,596 11 4,530 1,179,331 703,052 1,151,473 4,277,963 4,389,980 1,380,000 851,000 1,264,238 25,698,223 9,836,023 150,069 6,222,025 1,665 91,891 1,975,003 56,859 5,120,336 2,987,366 8,509,436 3,505,445 28,215,787 2,066,041 36,973,031 5,060,854 46,387,200 3,674,000 0 65,413,618 16,616,854 2,148,552 3,967,927 2,333,770 1,439,953 1,785,500 12,523,746 40,152,449 851,215 451,000 6,658,298 18,524,660 40,477,592 0 14,919,796 120,000 0 12,821,832 0 23,487,290 15,833,622 10,773,344 2,925,000 56,980,000 0 36,790,000 40,462,300 46,737,200 3,674,000 35,000 9,522,000 18,179,854 2,626,000 4,000,000 3,060,000 2,050,000 2,850,000 15,863,524 46,074,485 2,231,215 1,302,000 5,732,592 22,998,511 0 14,241,138 120,000 0 13,992,000 0 27,036,500 16,582,053 38,337,567 3,152,136 1,674,434 8,755,397 3,707,280 2,485,517 7,619,772 389 15,177 286,854 69,639,429 203,722 296,148 82,457 453,101 93,005 86,974 938,185 (1,532,056) 0 0 2,189,944 5,885,316 27,315,104 150,069 6,900,683 1,665 91,891 804,835 1,571,126 2,238,935 56,859 WATER - REPLACEMENT 5,926,025 61,106,935 21,301,148 45,731,812 TOTAL 181,433,194 476,026,403 466,477,431 igo,ga2,165 hibit B bq I t e c 0 E I c c I I C c Exhibit B hibit B .- E e e n m U C aJ E e E CI U - m n .- d m s t 0 0 N '0 n e n 3 a r f a $ I i a 3 5 i a 3 I I i P 5 1 f iibit B 6% LL c W 0 L d Y sit B z E i ! I I 1 ! ! I Exhibit B EXHIBIT C ADJUSTED OVER FINAL PRELIMINARY (UNDER) BUDGET BUDGET 2003-04 MAJOR SERVICE AREA 2003-04 2004-05 ALLOCATED )POLICY AND LEADERSHIP GROUP I CITY COUNCIL 1 .oo 1 .oo 0.00 CITY MANAGER 6.00 6.00 0.00 COMMUNICATIONS 2.75 2.75 0.00 CITY TREASURER 0.75 0.75 0.00 CITY CLERK 0.00 0.00 0.00 CITY AlTORNEY 7.00 7.00 0.00 )ADMINISTRATIVE SERVICES i I I ADMINISTRATION RECORDSMANAGEMENT INFORMATION TECHNOLOGY FINANCE RISK MANAGEMENT HUMAN RESOURCES &WORKERS COMP (PUBLIC SAFETY I POLICE FIRE )COMMUNITY DEVELOPMENT 1 COMMUNITY DEVELOPMENT ADMINISTRATION BUILDING INSPECTION ECONOMIC DEVELOPMENT GEOGRAPHIC INFORMATION PLANNING HOUSING AND REDEVELOPMENT )COMMUNITY SERVICES I LIBRARY CULTURAL ARTS RECREATION SENIOR PROGRAM .2.00 8.00 16.00 28.00 2.00 10.00 148.00 79.75 2.00 8.00 16.00 28.00 2.00 10.00 148.00 79.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.00 3.00 0.00 13.00 13.00 0.00 1 .oo 1 .oo 0.00 2.00 2.00 0.00 25.00 25.00 0.00 10.00 10.00 0.00 48.00 48.00 0.00 5.00 5.00 0.00 31 .OO 31 .OO 0.00 2.00 2.00 0.00 )PUBLIC WORKS 3 ADMINISTRATION 6.00 7.00 1 .oo ENGINEERING SERVICES 57.00 57.00 0.00 GENERAL SERVICES 58.75 57.75 (1 .OO) MAINTENANCE & OPERATIONS 73.00 73.00 0.00 FULL AND 314 TIME LABOR FORCE 646.00 646.00 0.00 EXHIBIT C PERSONNEL ALLOCATIONS FOR 2003-04 AND 2004-05 (Continued) 'LIMITED TERM EMPLOYEES Difference 2003/04 2004/05 ISUMMARY OF REQUESTED LABOR FORCE BY CATEGORY i Full Time Personnel I 314 Time Personnel in Full Time Equivalents 2003104 2004/05 Difference 640.00 640.00 6.00 6.00 0.00 I Hourly Full Time Eauivalent Personnel 148.27 147.93 \- - , TOTAL LABOR FORCE 794.27 793.93 (0.34) Management Interns Building Inspector Intern Division Chief Overstaff GIS Intern 2.00 1.50 2.00 2.00 1 .oo 0.00 0.50 0.50 (0.50) 0.00 (1 .OO) 0.00 Planning Technician Intern 1 .oo 1 .oo 0.00 TOTAL LIMITED TERM EMPLOYEES 6.50 5.00 (1.50) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2c 21 22 23 24 25 26 27 28 Exhibit 5 RESOLUTION NO. 1215 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 2004-05 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 2004-05 Operating and Capital Improvement Budgets. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District as follows: 1. 2. That the above recitations are true and correct. That certain documents now on file in the office of the Secretary entitled "City of Carlsbad, 2004-05 Operating Budget and 2004-05 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 2004-05. 3. That the amounts reflected as estimated revenues for fiscal year 2004-05 are hereby adopted as the budgeted revenues for 2004-05. 4. That the amount designated as 2004-05 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. 6. That the following controls are hereby placed on the use and transfers of budget funds: 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 Page 2 of Resolution # 1215 Exhibit 5 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 temporary 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, 2004 are hereby continued into 2004-05 for such contracts and obligations. 8. All appropriations for Capital Improvement Projects remaining unexpended at June 30,2004, are hereby appropriated for such capital projects for the 2004-05 fiscal year. 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 Page 3 of Resolution # 1215 Exhibit 5 PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors held on the 22nd day of June , 2004 by the following vote, to wit: AYES: Board Members Lewis, Finnila, Kulchin, Hall and Packard NOES: None ABSENT: None ATTEST: , Exhibit A PROGRAM: WATER OPERATIONS FUND: WATER ENTERPRISE PROGRAM GROUP: MAINTENANCE & OPERATIONS ACCT NO. 5016310/5026310 200 1 -02 2002-03 2003-04 2004-05 ACTUAL ACTUAL BUDGET BUDGET PERSONNEL 2,315,047 2,459,420 2,506,467 2,833,259 MAINTENANCE & OPERATIONS 15,218,241 15,441,559 18,552,223 17,944,130 CAPITAL OUTLAY 0 53,028 0 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 (70,000 customers). The District purchases 100% of its potable water as treated water lrom the Metropolitan Water District and the San Diego County Water Authority. PROGRAM ACTIVITIES: Administration 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 Ouerations 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. Meter Services 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. PERFORMANCEWORKLOAD 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 I ,428 3 1,425 99.0% 1999-00 1,615 1 1,614 99.9% 2000-01 1,725 3 1,722 99.8% 200 1-02 1,719 1 1,718 99.9% 2002-03 1,719 1 . 1,718 99.9% Exhibit A PROGRAM: WATER OPERATIONS PAGE TWO FUND: WATER ENTERPRISE PROGRAM GROUP: MAINTENANCE & OPERATIONS ACCT NO. 5016310/5026310 PERFORMANCEMlORKLOAD MEASURES (continued) Water Service Delivery Annual number of hours per mile of distribution line that a water main is out of service should be zero. Fiscal Total Miles Hours/Mile Year Hours Distribution Lines Distribution Line 1998-99 18 350 .05 1999-00 17 400 .04 2000-01 0 410 0.00 2001 -02 0 431 0.00 Water Cost 0 Annual water loss not to exceed six percent as set by the California Department of Water Resources. Distribution system losses commonly range between 6% and 15%. The American Water Works Association recommends that the loss after treatment be maintained at 10% or less. Fiscal Water Year Loss 1998-99 4.87% 1999-00 5.36% 2000-01 4.29% 2001 -02 4.24% 2002-03 5.18% Total annual expenditures per acre-foot of water delivered. Fiscal Cost per Year Acre-Foot 1998-99 $81 1 1999-00 $795 2000-01 $808 2001 -02 $793 2002-03 $828 WORKLOAD STATISTICS : Water Use Data Water Service Turn - Off/On 13.3% Daily OperationslSystern Maintenance 23.4% ReplacernenVRep Flow Control Station Maintenance ,29yo Valve Maintenance Maintenance 5.68% 3.46% SIGNIFICANT CHANGES: None. Exhibit A PERSONNEL PROGRAM: FINANCE FUND: GENERALlENTERPRlSE PROGRAM GROUP: FINANCE 2001 -02 2002-03 2003-04 2004-05 ACTUAL ACTUAL BUDGET BUDGET 1,701,645 1,806,241 2,085,896 2,296,24 1 ACCT NO. 001 131 0 837,860 1,042,290 990,902 769,494 MAINTENANCE & OPERATIONS CAPITAL OUTLAY 12,144 862 0 76,500 GENERAL FUND WATER ENTERPRISE SEWER ENTERPRISE TOTAL FUNDING 2,157,099 2,434,193 2,601,498 2,599,435 236,730 242,700 332,700 380,000 157,820 172,500 142,600 162,800 2,551,649 2,849,393 3,076,798 3,142,235 General Accountina and Reporting Accurately bill, collect, record, and report all City revenues including follow-up of delinquent accounts. Assessment DistrictlCommunity Facilities District (CFD) Administration Purchasinq Prepare checks for City employees and for service and commoditysuppliers. 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 the City Council and City management with timely monthly financial reports. Monitor City debt issues to ensure timely payment and identify refinancing opportunities. Provide continuing disclosure as required. 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. 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. PROGRAM: FINANCE FUND: GENERAUENTERPRISE PROGRAM GROUP: FINANCE FY2001 FY2002 Exhibit A PAGE TWO ACCT NO. 0011310 FY2003 PROGRAM ACTlVlTl ES (con tin ued) : Receivinq, Messencler, and Mail Services 0 0 0 Act as shipping and receiving for the Faraday Administration Center. Direct disposal of surplus and lostlunclaimed property. Collect outgoing City mail and apply postage. Sort and distribute all incoming City mail. WORKLOAD AND PERFORMANCE INDICATORS: 0 Average number of days to issue Monthly Financial Status Report 16 13 12 KEY GOALS FOR 2004-05: ToD-Qualitv Services 0 0 Parks, ODen SDace. Trails 0 Financial Health 0 0 Improve the service to citizen’s and employees by implementing a customer service center for the department. Enhance the ability of the City’s staff to track budget and cost data by individual projects and programs. Provide financing for the City’s proposed 18-hole golf course. Ensure continued financial health of the City by updating the financing plans for the City’s circulation system. Determine the amounts needed for replacement of the City’s infrastructure and equipment and establish policies for the use of those funds. 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 of its purchases of goods and services. Ensure all amounts due to the City are collected through uniform billing and collecting policies and procedures. SIGN IF ICANT CHANGES : None. Exhibit A 2001 -02 2002-03 ACTUAL ACTUAL PERSONNEL 3,935,758 4,135,843 MAINTENANCE & OPERATIONS 1,670,682 2,299,441 2003-04 2004-05 BUDGET BUDGET 4,469,154 5,063,532 1,624,508 2,296,293 CAPITAL OUTLAY SEWER ENTERPRISE TOTAL FUNDING 55,183 674,500 463,316 379,905 472,680 5,661,623 6,465,812 6,093,662 7,359,825 30,528 WATER ENTERPRISE 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 ACTlVlTl ES : 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 improvement projects including parks, roadways, storm water systems, domestic and recycled water systems, and sewer systems; develop and maintain programs in pavement management, markouts, water resource development, domestic water and recycled water systems, sewer systems, and storm water systems. For each of these programs, Design provides a variety of services including planning, water quality investigations, technical engineering 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. Assist in maintaining optimum traffic signal operations. Review traffic control plans, signing and striping plans, and traffic signal plans; review development project submittals; provide interdepartmental coordination of various issues; and staff the Traffic Safety Commission. Development Services Plannina and Proarams Desian Transportation Exhibit A PROGRAM: . ENGINEERING PAGE TWO FUND: GENERAUWATER & SEWER ENTERPRISE PROGRAM GROUP: EN G I N E E RI N G S E RVI C E S ACCT NO. 001 571 015x1 571 0 PROGRAM ACTlVlTl ES (con tin ued): Construction Manaaement and InsDection 0 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 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $1 00,000,000 $60,000,000 $40,000,000 $20,000,000 $0 $80,000,000 FYoo-01 FY 01-02 FY02-03 FYO3-04 (Est) KEY GOALS FOR 2004-05: Transportation/Circulation 0 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. Parks/ODen SDace/lrails 0 Complete permitting and design of Coastal Rail Trail in preparation for construction in FY2004. Jefferson Street Sidewalks under construction. Water 0 0 0 0 0 Construct Forest Avenue Sewer. 0 Plannina and Proarams 0 0 0 Environmental Manaaement 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 rate of growth and future buildout. Construct recycled water transmission pipelines, and pump stations to distribute water from the Phase II recycled water program. Construct El Camino Real Transmission Main Replacement (Cassia to Palomar Airport Road). Construct El Camino Real Transmission Main Replacement (Faraday to Cougar). Construct Cannon Road Lift Station. Begin construction of Lake Calavera Improvements. Completion of GIS inventory for Storm Drain, Sewer and Parks Facilities. Completion of Traffic Impact Fee Update Initiation of Drainage Master Plan at planned local Drainage Area Fee program update. SIGN IF ICANT CHANGES : 0 Plancheck and Inspections have risen sharply over the past two years, due to development activity i 5 3 2 i I i J ! ! I ! 1 > 1 ! I ! I I I ! ! I I ! I I I I ! , Exhibit A 1 2 3 4 5 6 7 8 9 10 11 I2 I? 14 15 1E 17 I€ 15 2c 21 2; 2: 24 2: 2E 27 2E Exhibit 6 RESOLUTION NO. 384 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 2004-05 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 2004-05; and WHEREAS, the Commission has reviewed the operating budget for the Housing Authority Section 8 Programs, for Fiscal Year 2004-05; 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, 2004-05 Operating Budget and 2004-05 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 2004-05. 3. That the amounts reflected as estimated revenues for fiscal year 2004-05 are hereby adopted as the budgeted revenues for 2004-05. 4. That the amount designated as 2004-05 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 ill 1 2 3 4 5 E 7 € E IC 11 I2 12 14 1: I€ 15 1E 1s 2( 2’ 2; 2: 2L 2! 2c 2; 21 Page 2 of Resolution # 384 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, 2004, are hereby continued into 2004-05 for such contracts and obligations. Ill 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 28 384 Exhibit 6 Page 3 of Resolution # That all appropriations for Capital Improvement Projects remaining unexpended at June 30, 2004, are hereby appropriated for such capital projects for the 2004-05 fiscal year. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing and Redevelopment Commission of the City of Carlsbad on the 22nd day of June 2004, by the following vote, to wit: AYES: Commissioners Lewis, Finnila, Kulchin, Hall and Packard NOES: None ABSENT: None AlTEST: Exhibit A 200 1 -02 2002-03 2003-04 ACTUAL ACTUAL BUDGET 162,366 162,604 164,367 1,855,044 1,398,850 PERSONNEL MAINTENANCE & OPERATIONS 1,938,584 CAPITAL OUTLAY 1,559 269,118 0 2004-05 BUDGET, 178,619 1,352,303 0 M I SS ION STAT E M E NT : Helping people achieve their dreams. PROGRAM ACTIVITIES: Implementation of the Carlsbad Villaae 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. Community Relations and Public Relations Proaram Work with the Carlsbad Villaae 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. PERFORMANCEMIORKLOAD MEASURES: Process 15 applications for redevelopment permits for improvements to existing structures or new construction projects. Process 10 sign permit applications. Process 5 preliminary review applications. Facilitate the development of at least one "special opportunity projecf' identified in the Village Redevelopment Master Plan. KEY GOALS FOR 2004-05: Financial Health Process redevelopment permits for all types of proiects 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 and/or mixed-use development on North State Street. TransDortation/Circulation Acquire additional property for the construction of public parking lots in the Village Area. Balanced Cornmunib DeveloDment (also affects Financial Health goal) Implement the actions outlined in the Redevelopment Operations Strategy to address the land use and administration/organizational structure strategies following the July 2007 expiration of the Redevelopment Plan. SIGN I Fl CANT CHANGES : None. Exhibit A PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY PROGRAM: LOWlMODERATE INCOME HOUSING FUND: REDEVELOPMENT AGENCY VILLAGE AREA PROGRAM GROUP: HOUSING AND REDEVELOPMENT ACCT NO. 8033420 2001 -02 2002-03 2003-04 2004-05 ACTUAL ACTUAL BUDGET BUDGET 28,247 32,559 39,776 43,014 16,924 27,904 59,172 73,991 0 47,184 0 0 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Affordable Housina Proiect Processing Procedures Affordable Housina Proiect Coordination Affordable Housina Education Proaram Continue development of affordable housing project processing procedures. Assist in the structure and implementation of affordable housing projects. Direct educational programs for citizens, businesses, and government agencies interested in affordable housing. PERFORMANCEWORKLOAD MEASURES: Process at least 3 requests for financial assistance through the Housing Policy Team. Use existing low-income and moderate-income housing funds to develop property for an affordable housing project in, the Village Redevelopment Area. Participate in at least 3 outreach programs, professional conferences, andlor citizen and business groups on affordable housing. KEY GOALS FOR 2004-05: ToD-Quality Services 0 Continue to assist private developers to provide affordable housing as required by the lnclusionary Housing Ordinance. SIGNIFICANT CHANGES: None. Exhibit A 2001 -02 2002-03 2003-04 ACTUAL ACTUAL BUDGET PERSONNEL 41,795 64,241 60,271 MAINTENANCE & OPERATIONS 21,278 104,130 123,257 CAPITAL OUTLAY 0 156 0 PROGRAM: REDEVELOPMENT OPERATIONS FUND: REDEVELOPMENT AGENCY PROGRAM GROUP: HOUSING AND REDEVELOPMENT ACCT NO. 8103420/8113412 SOUTH CARLSBAD AREA 2004-05 BUDGET 81,198 354,328 0 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Implement Redevelopment Plan for South Carlsbad Coastal RedeveloDment 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, and/or generally clean up the Ponto Area. Enhance commercial and recreational functionslactivities in the Redevelopment Area and increase parking and open space amenities. PERFORMANCEWORKLOAD MEASURES: Implement land use vision for planning area three. KEY GOALS FOR 2004-05: Balanced Communitv DeVelODment Facilitate the development of one project identified by the vision study for planning area three. SIGN I FI CANT CHANGES : Includes funding to begin the land use strategy for planning areas 1 and 2. Exhibit A PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY PROGRAM: LOW/MODERATE INCOME HOUSING FUND: REDEVELOPMENTAGENCY SOUTH CARLSBAD AREA PROGRAM GROUP: HOUSING AND REDEVELOPMENT ACCT NO. 8123420 2001 -02 2002-03 2003-04 2004-05 ACTUAL ACTUAL BUDGET BUDGET 11,825 13,069 18,556 31,944 7,519 3,396 19,561 22,349 0 32 0 0 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Implement Citywide Affordable Housina Proorams 0 0 Affordable Housing Education Activities. 0 Affordable Housing Project Coordination for lnclusionary Housing Development. Development of affordable housing programs. Facilitation of development of new affordable housing projects. PERFORMANCEWORKLOAD 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 Cartsbad. Develop Housing Plan for South Carlsbad Coastal Redevelopment Area. KEY GOALS FOR 2004-05: Balanced Communitv Development 0 0 Continue to assist private developers to provide affordable housing as requirec by the City’s lnclusionary Housing Ordinance. Implement affordable housing programs that serve to enhance the jobs/housing balance within the community. SIGNIFICANT CHANGES: None. Exhibit A PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY PROGRAM: RENTAL ASSISTANCE FUND: HUD SECTION 8 HOUSING PROGRAM GROUP: HOUSING & REDEVELOPMENT ACCT NO. 1903401 2001 -02 2002-03 2003-04 2004-05 ACTUAL ACTUAL BUDGET BUDGET 289,420 31 1,937 348,415 378,117 3,578,153 4,705,629 5,201,287 5,664,514 0 1,531 0 0 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Section 8 Tenant-Based Rental Assistance 0 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. Familv Self-Sufficiencv 0 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. P E RFORMAN C EMORKLOAD MEASURES: 0 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. SIGNIFICANT CHANGES: None. Exhibit A L € I E E IC 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ~ \ 28 Exhibit 7 RESOLUTION NO. 2004-196 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING THE 2004-05 APPROPRIATION LIMIT AS REQUIRED BY ARTICLE XlllB OF THE CALIFORNIA STATE CONSTITUTION AND STATE LAW 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 2004-05 appropriation limit of one hundred fourty-two million, five hundred eight thousand, eight hundred thirty-eight dollars ($142,508,838) as computed in Exhibit A attached he re to. 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 22nd dayof June ,20 AYES: Council Members Le 1 and Packard NOES: None ABSENT: None ~~ NRRAINEP. WOOD, City Clerk (Seal) J 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: P > > 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 2004-05 Limit were: P 9 Population growth in Carlsbad, AND Growth in non-residential new construction The formula is outlined below: 2003-04 Expenditure Limit (Revised) $1 34,693,483 YO 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) 1.0244 X 1.0328 1.0580 $1 42,508,838 $77,451,439 The spending limit for the City of Carlsbad for 2004-05 is $142.5 million, with appropriations of "proceeds of taxes" of $77.5 million. The result of the calculation provides the City with an operating margin of $65.0 million. I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 I9 20 21 22 23 24 25 26 27 28 Exhibit €3 RESOLUTION NO. 2004-197 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 general City fees and development-related fees as shown in Resolution 2004-1 83, except as specifically amended, shall remain in full force and effect. Ill 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 28 Page 2 of Resolution # 2004-197 Exhibit 8 3. This resolution shall become effective on July 22, 2004 for General City fees and August 22, 2004 for the Development-related fees. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 2211d day of June , 2004 by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard NOES: None ABSENT: None (SEAL) CITY OF CARLSBAD PROPOSED REVISIONS TO THE MASTER FEE SCHEDULES JUNE 2004 Fee per gross acre Area / Basin Name A Buena Vista Lagoon B Agua Hedionda Lagoon C Encinas Creek D Batiquitos Lagoon 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 $43,000 $43,000 $0 Current Revised Low High Low High Runoff Runoff Runoff Runoff $1,837 $3,007 $1,865 $3,052 3,949 6.463 4,009 6,560 2,953 4,832 2,997 4,905 40 66 41 67 Sewer Benefit Area Fees -- Current Revised Chanqe Area A 0 379 $ 384 0 5 Area B 667 675 8 Area C 1,645 1,675 30 Area D 1,648 1,678 30 Area E 2,430 2,475 45 Area F 2,443 2,488 45 Area G 103 105 2 Area H 808 808 Area I 387 392 5 Area J 1.333 1,351 18 Area K 2,690 2,725 35 Area L 1,054 1,067 13 Area M 52 52 Bridge & Thoroughfare District #2 Fees Current Revised Change Zone 5 $239 $246 $7 Zone 20 1,242 1,278 36 Zone 21 990 1,032 42 Bridge & Thoroughfare District #3 Fees Current Revised Change Fee Der ADT $138 $140 $2 Agricultural Mitigation Fees Current Revised Change $8,858 $9,744 $886 Exhibit A 97 I BUDGET HIGHLIGHTS 1 h I I B All Receive-Agenda Item # POINSETTIA PARK TENNIS COURTS Background In 1988, voters were asked to approve Proposition M to increase the Transient Occupancy Taxes (TOT) tax to pay for a regulation length and executive golf course, a tennis complex, and other recreational facilities. The Proposition failed to gain the necessary 2/3rd vote for passage. In January ‘89, the “Recreational Facilities Financing Committee” (citizens) was appointed by the City Council to review alternative options for how to fund these facilities. Regarding tennis, the Committee recommended “development of a multi-court tennis facility, adequate for tournament play beginning in 1989, utilizing primarily Public Facilities Fees (PFF) funds currently designated for parks tennis projects”. The Council adopted this recommendation in March of ’89. Also, as part of the Committee’s recommendation, Propositions F & G were put to the voters in November ’89 and approved. Proposition F increased the TOT tax from 8 to 10%. Proposition G authorized (but did not require) the City to spend more than $1 million for “two public golf courses, one regulation and one short course, a multi-court tennis complex, two multi-purpose adult size fields, and an enclosed soccer field”. As a result of the Committee’s recommendation, a tennis complex (IO courts, one stadium court, and a club house/pro shop) was integrated into the Poinsettia Community Park Master Plan and approved by the City Council in August ’92. Implementation of the park master plan has been phased and to date, 3 of the 11 tennis courts have been built. In the proposed 04-05 CIP, the remainder of the tennis court complex is scheduled for construction in Phase II of the park in FY 2010-14. Phase II also includes a community center/gymnasium, enclosed soccer field, tot lots, picnic areas, and additional parking. The first phase of Poinsettia Park provided 3 lighted tennis courts along with the other park amenities which included 3 ball fields, 1 soccer field, 2 basketball courts, a tot lot, 2 restrooms, open play area, picnic areas, temporary maintenance facility, and parking. Staff believes that the recent demand for increased tennis courts is, to some degree, a result of Carlsbad High School periodically locking their courts. Staff is working with the High School to assure the courts are available when not being utilized by the High School. The number of tennis classes being offered by the Recreation Department has remained fairly constant. Attendance in most classes is below the recommended maximum number of participants and, in a few cases, classes have been cancelled due to low enrollment. Costs Estimates For Tennis Courts Options Construction Maintenance Estimate costs r Two options for the expansion of the tennis courts are shown below. It should be noted that additional options for construction could be explored such as building 3 additional courts; however, to optimize revenues and/or explore privatization opportunities, the full complex (including pro shop/clubhouse and center court) would need to be built. Full ComDlex adding 7 more lighted courts plus the "stadium court" (total I1 courts), 3,000 sq ft clubhouse, and additional parking per the Poinsettia Park Master Plan. *$3,000,000 **$59,000 per year 1 *$1,000,000 1 $24,000 Der vear 7 more liqhted courts w/o "stadium court" or clubhouse (total 10 courts). * Due to a variety of reasons, construction costs are extremely volatile at this time. Therefore, although the above costs are conservative, it is not known at what level the cost will continue to increase in the near future. Also, these construction costs are based on master plan level design, and not final design. ** Maintenance is estimated at $3,380 per courtlper year and includes lights, cleaning, net repair, etc. For the full complex, facility maintenance costs are added in at $5.66/square foot per year as well as additional amounts for the maintenance of the grounds and parking lot. Construction Fundinq The future phases of the Park are funded with Public Facilities Fees (PFF) and are scheduled in the Capital Improvement Program (CIP) for construction sometime between 2009-2014. If Council chooses to build some, or all, of the tennis complex, it would require moving the funding up from the current projected time frame of 2010 - 2014 to the present. Under either scenario (moving up the project or leaving it as currently shown in the CIP), revenue projections in the CIP anticipate the PFF fund going into a deficit of approximately $2.9 million sometime between 2010 and 2014. Moving up thk project locks in the use of PFF funds for this project rather than giving Council options on what projects may need to be delayed if future revenues are not sufficient. The projections for the PFF fund and the scheduled projects as proposed in the 2004-05 CIP are shown in Exhibit A. Recreation Programming The costs shown in the table above are for the basic maintenance of the facility and do not include any recreational programming. If Council chooses to accelerate the construction of any portion of the tennis complex, it would provide an opportunity for additional recreational options for the citizens. This could range from simply adding additional instructional classes (if only courts are constructed) to creating a full membership-based tennis program including a pro shop and full time contractual tennis professional (if full complex is constructed). All of these options can serve to generate revenues that will offset the maintenance costs of the facilities. The membership-based programs have a range of operating models with corresponding various degrees of public/private partnerships and revenue generating scenarios. Based on information gathered from existing tennis facilities in San Diego County, net revenues to the City from the programming (net of all salaries and operating costs) could range from break even to over $50,000 per year. The current trend appears to be a City owned facility run by a non-profit organization. In this model, the non-profit runs the program and pays for all operating costs including the maintenance costs noted in the table above. Thus, there would be no direct cost to the City. If Council wishes to accelerate the construction of some or all of the tennis court complex, staff can return with recommendations on the recreation programming including an estimate of the potential revenue to be generated. COUNCIL OPTIONS In summary, staff would like direction from the City Council on which of the following options they would like to pursue: 1. Make no change in the Capital Improvement Program for Poinsettia Park. 2. Move up $1,000,000 in Public Facilities Fees from Poinsettia Park -Phase II estimated costs to fiscal year 2004-05 for the construction of 7 tennis courts. 3. Move up $3,000,000 in Public Facilities Fees from Poinsettia Park -Phase II estimated costs to fiscal year 2004-05 for the construction of 7 tennis courts, a stadium court, a 3,000 square foot clubhouse, and additional parking per the Poinsettia Park Master Plan. . t- .a 5; 91 c c x w 3' .n mi 0 0 x x 2 In - 0 0 Lo 3 3 3 3 3 n 3 ? c :: - 3 ? 5 3 3 ? ! 5 June1 1,2004 TO: MA1 OR JD COUNCIL IEMBERS VIA: CITY MANAGER FROM: FINANCE DIRECTOR CITIZENS BUDGET FORUM COMMENTS A Citizens Budget Forum was held at 5pm on June 9 at Faraday. A total of 16 citizens attended. The following is a summary of comments and questions from the workshop. 1. Poinsettia Park Tennis Court questions: 0 Where are these in the Capital Improvement Program (CIP)? The Poinsettia Park tennis courts are currently in years 6-10 in the CIP. Council has requested information on the cost of moving the project up in the CIP. Staff is preparing a report to provide Council this information as well as different options on how this can be accomplished. 0 There was discussion about an agreement the City had with the high school about the City maintaining the courts in exchange for the courts being available to the public. According to the citizens at the workshop these courts are locked and not accessible to the public. See attached memo at Exhibit A that gives background on this situation. 0 Why are we building a maintenance building at Poinsettia Park for $400,000 when we could build the remaining 7 tennis courts for The maintenance building had been scheduled in the next year due to recurring thefts at the temporary maintenance facility at the park. $600,000 -$700,000? 0 The citizens were asked what type of tennis complex they wanted, and would they be willing to pay to play. The citizens present at the workshop indicated that something with a clubhouse (similar to Morley field in San Diego) is what they would like and that they would be willing to pay to play at this type of complex. 2. Is anything planned to improve the flooding on Madison behind the Post Office? There are no plans for this at this time. 3. What is the status of the following traffic signals/pedestrian crossings? North end of Carlsbad Blvd. and State Street 0 Laguna and North end of Roosevelt 0 Laguna and North end of Madison There are no plans for any of these intersections at this time. 4. 5. 6. 7. 8. What is the status of our pension fund? We explained that we are a member of the Public Employee Retirement System and that we are currently fully funded. When will the City provide a pedestrian crossing along Carlsbad Blvd. to the Buena Vista Lagoon? The Carlsbad Boulevard pedestrian access study is due to start this fiscal year. This study will look at ways to improve access on Carlsbad Boulevard, which includes this section. Where do we budget for low-income housing? In the Redevelopment fund there is a Low and Moderate Housing fund which is funded by 20% of the property taxes received by the Redevelopment Agency. We also have a Housing Trust fund that funds affordable housing projects. The priorities are large families and rental product. There have been thefts at Poinsettia Park, why don’t we install white lights instead of the yellow lights that we currently have in order to deter the crime? Typically more light leads to less crime and white lights do give off more light than the yellow ones. The yellow lights were installed countywide back in the 70’s because the observatories said the ambient light from the white sodium lights interfered with seeing the stars. Does the City have an incentive program for employees who identify cost savings? The City currently does not have an incentive program for employees who identify cost savings. GdA HILDABRAND Attachments EX H I B ITS A. Memo to City Manager from Recreation Director dated February 10, 2004 regarding Carlsbad High School Tennis Courts. EXHIBIT A February 10,2004 TO: CITY MANAG E R FROM: RECREATION DIRECTOR CARLSBAD HIGH SCHOOL TENNIS COURTS BACKGROUND On January 30, 2004, I was contacted by Council Member Kulchin to investigate a complaint she received as to why the Carlsbad High School tennis courts were locked, and why they were no longer available to the public during the school week. I spoke with Ms. Mary Haggerty, a member of the “4 Set Tennis Club,” regarding this situation. She stated that for the past 10+ years her group had been playing on the Carlsbad High School tennis courts every Monday, Wednesday and Friday mornings prior to the student’s use of the courts for their physical education (P.E.) class. Everything had been fine until recently, when the tennis P.E. coach had numerous altercations with members of several other adult tennis clubs who had also been using the courts. As a result of these altercations, CHS decided to lock the gates. Staff then contacted Bob Pierce, the Vice PrincipaVAthletic Director of Carlsbad High School, and was informed that their staff had indeed locked the courts before school, and that the courts will remain locked during school hours. Availability to the public will be limited to after school hours and on weekends. Vice Principal Pierce indicated that the school had no other choice than to lock the courts, due to the fact that the tennis players took advantage of the situation by 1) not leaving the courts when class began and, 2) having the tennis coach endure harassment and embarrassment from the groups, stating that she was “Not teaching tennis correctly.” In an attempt to reach a compromise, staff inquired as to whether or not something could be worked out. Mr. Pierce indicated “No,” that he and his staff attempted to cooperate and that “the tennis groups have taken advantage of the situation.” During the past several days, staff has received several other calls and letters from members of the other tennis groups, and they too were unhappy that the courts were now locked. They also mentioned that as taxpayers, they felt the courts should be open to the public when they were not in use by the high school. I have informed all involved that there is a “Use Agreement” between the City and Carlsbad Unified School District for the use of the tennis courts. With the courts being on school district property and the City investing funding for the rehabilitation and lighting, the two agencies had formed an agreement that restricts public use during EXHIBIT A school hours. For whatever reason, the high school has allowed the tennis players to use the courts in the past; however, with the ongoing altercations between the coach and tennis groups, authorities at Carlsbad High School are now enforcing their right to lock the courts. In one of my attempts to assist in coordinating some type of resolution between the high school and the tennis groups, I contacted Scott Wright, Principal of Carlsbad High School. I thought it might be beneficial to bring all parties together to discuss the matter. In my conversation with Mr. Wright, he did not feel that it would be beneficial to further discuss the matter due to the fact that the school has made every effort to cooperate, and with the negative attitude of the tennis groups, their embarrassment of the tennis coach, as well as dealing with potential safety issues as it relates to the youth, he felt that the best way to resolve this issue is to secure the courts on the school campus from public use during school hours. Staff has contacted all representatives from the tennis groups and has informed them of the Carlsbad Unified School District’s position. Additionally, staff has given the tennis groups alternate sites within the City in which they can play. If there are any additional questions regarding this issue, I would be more than happy to answer them at your convenience. KEN PRICE C: Assistant City Manager Recreation Services Manager Page 1 of Cindee Hollingsworth - Note to the Council Members JUN 1 5 2004 From: <EB2230@aol.com> To: <choll@ci.carIsbad.c.us> Date: 06/15/2004 10:26 AM For the Mbmati on Subject: Note to the Council Members I - Dear Cindee, 6-r5-w3 Please advise the Council Members of our request for them to commit funds to open space land acquisition. We are sorry that a prior engagement prevents us from attending the Council Meeting this evening. Elizabeth and George Burmeister 3490 Don Albert0 Drive Carlsbad, CA 92008 ~l~~IIC~\~ncuments%20and%20Settings\choll\L~c~~~2OS~ttin~s\Temp\GW~ 0000 1 .HTM 06/15/20 Page 1 of 1 Council Internet Email - Funds for Open Space in City Budget From: To: <council @ci.carlsbad.ca.us> Date: 6/10/2004 1257 PM Subject: Funds for Open Space in City Budget "James Hagler" <hagler @ prodigy .neb Dear City Council: We are writing to express our support for use of reserve funds for acquisition of open space in the coming budget. As you know, numerous surveys of residents have shown that preservation of open space and limitations on more new construction are of primary importance to the majority of Carlsbad residents. This is becoming a greater concern each day, as land values rise and more development projects threaten further destruction. Please use this opportunity to devote public funds to the thing the public desires: preservation of open space. In particular, the Village H project is of critical importance to many, both as a wildlife corridor and simply as a fun place to socialize and walk dogs. Please don't allow this wonderful area to be lost to development. Thank you for your consideration. We hope you will choose to allocate necessary funds for acquisition of open space in the coming budget. James and Karen Hagler 3966 Foothill Avenue Carlsbad Page 1 of 1 Council Internet Email - Save Open Space From: To: <council @ci.carlsbad.ca.us> Date: 6/10/2004 9:09 AM Subject: Save Open Space ”CaroIyn Martus” <carolynmartus @ adelphia.net> Dear Mayor Lewis and Council Members Kulchin, Finnilla, Hall and Packard, I just wanted to let you know that I fully support the expenditure of public funds to purchase and set aside natural areas for trails and open space within the City of Carlsbad. Areas that I’m particularly concerned about is the land in the Buena Vista Creek Valley and the historic El Salto falls. I can’t make the city council meeting so I wanted to make sure I e-mailed you about my concerns. Thank you for taking the time to listen to your constituents and I appreciate your service to the city of Carlsbad. Carolyn Martus 3685 Harding St Carlsbad CA 92008 Page 1 of 1 Council Internet Email - Saving Open Spaces From: To: <council @ci.carlsbad.ca.us> Date: 6/10/2004 2:02 PM Subject: Saving Open Spaces "Manaktala Family" Coscarpug @ hotmail.com> It has come to our attention that the current budget doesn't include enough money for open space conservation. We feel that this should be as much of a priority as bending over for developers seems to be. It is about time to seriously invest in our natural lands and not simply pay it lip service. Save what makes Carlsbad great before we lose the opportunity forever. There is a huge diffence between the quality of life in El Cajon and Carlsbad, let's keep it that way! That's our opinion and we thank you for listening to it. Sincerely, Theron, Kristine and James Manaktala 2990 Brandon Circle Calsbad CA 92008 Page 1 of 1 Council Internet Email - Request for Action: Open Space Issue in Carlsbad From: To: <council@ci.carlsbad.ca.us> Date: 6/13/2004 11:09 AM Subject: Request for Action: Open Space Issue in Carlsbad "Joe & Trudy Conard" <JTConard@earthlink.net> Dear City Council Members: We moved to Carlsbad from Orange County about five years ago because we loved the open spaces of the canyons and hills along the North Coast of San Diego County. We dreamed of settling permanently in Carlsbad, and also plan to retire here in about five years. We have thoroughly enjoyed the city of Carlsbad, but over the past year or so we have really become disturbed and alarmed at the unchecked development of houses in our beautiful city. Our retirement plans here are now on hold. In fact, in July we are taking a vacation up to Ventura County to visit that area, and are seriously reconsidering our retirement plans of staying here. The congestion and over development of Carlsbad is quite frankly "turning us off', And that is really a shame ! The scary thing is we don't know what the pending land development plans are for the open space along Coast Highway in Carlsbad. Can we not have some parks and open space along the beautiful coast for hiking and open land use? And then there is all the development in Bressi Ranch, and in areas in North Carlsbad along El Camino Real. We can't even imagine what is planned for the areas along Cannon Road and between Cannon Road and south to Poinsettia Lane. Oh my! Carlsbad is being ruined just like so many cities in Orange County. We don't understand the need to develop every space...every canyon, every valley, every hill, and every open field within the city borders to satisfy developers unsatiable need to develop (and profit) every square inch of land with houses, buildings and roads. There appears to be some type of mission underway of turning Carlsbad into a city like Los Angeles. What has made Carlsbad appealing is the open space feeling. You have the leadership position and authority to stop this incessant growth. It is up to you as elected officials. We are counting on you. We are the tax payers and residents of Carlsbad who are asking you to stop this process by doing whatever you can do. Buy up these opens spaces to create preserves for nature to flourish. At least require these developers to build nature parks and create land use areas other than for more houses and more buildings. Please Save our City ! Joe & Trudy Conard Very Concerned Residents of Rancho Carrillo fi I P-//r-\nnr~ imm t cO/n?C)~nd%20S ettin ssklinb\Local%20Setting.s\Tem~\GW 10000 1 .HTK 611 572004 Page 1 of 1 Council Internet Email - Save our open space From: Carol Williams <cscarlsbad@ yahoo.com> To: <council @ci.carlsbad.ca.us> Date: 6/15/2004 8:09 AM Subject: Save our open space My husband and I have already paid tax dollars allocated to trails and open space in this budget. A golf coarse is not open space. A playground is not open space. A parlung lot is not open space. Where are all the native animals supposed to go? They were here first. I support no growth in our community. There are too many people and not enough land. How many big box stores do we need? Our native trees are being cut down for homes to be built. What happens to the birds and other wildlife that were living in the tree? We don't want anymore traffic, or more pollution. Save Carlsbad as a small village by the sea. Thank you, Carol Williams Carol Do you Yahoo!? New and Improved Yahoo! Mail - Send lOMB messages! Page 1 of 1 Council Internet Email - Please budget money to acquire more open space in Carlsbad From: <GIGIAOQaol.com> To: <council Q ci.carlsbad.ca.us> Date: 6/14/2004 7:54 PM Subject: Please budget money to acquire more open space in Carlsbad Honorable Mayor and City Councilmembers, I understand that none of the Measure C money has yet been budgeted for the acquisition natural lands acquisition here in Carlsbad. Please make this a priority when adopting the new budget. In the six years I have lived in Carlsbad, I have witnessed so much valuable, irreplaceable native habitat land, that served the public good in ways to numerous to count, rapidly diappear. It is vital that Carlsbad make an effort to acquire and preserve some of the last remaining natural open space lands. Even small pockets of land in Carlsbad neighborhoods can do so much to enhance the quality of life for residents here. (As has been exemplified in natural land parks such as Village H.) Thank you for your time and attention to this matter Very sincerely, Gigi Orlowski 3729 Bennington Court Carlsbad, CA 92008 (760)729-2945 Page 1 of 1 Council Internet Email - Atten: Mayor Lewis and Councill Members Finilla, Hall kulchin and Packard. Save Open Space in Carlsbad From: "Georgia Malesis-Best" <georgia@ccpu.com> To: <council@ci.carlsbad.ca.us> Date: 6/14/2004 4:39 PM Subject: Atten: Mayor Lewis and Councill Members Finilla, Hall kulchin and Packard. Save Open Space in Carlsbad I would like to petition some of our already paid tax dollars allocated to trails and natural open space. thanks, Georgia Malesis-Best Exec. Assistant fax 777-3388 georgia@ccpu.com (858) 882-8893 file://C:\Documents%20and%20Sett~nns\kl~nb\local%20Set~nns\Tem~\GW 100001 .HTM 611 5/20134 June 15,2004 TO: CITY MANAGER FROM: Senior Accountant, Stover VIA: Finance Director ! Revised Exhibit - Fee Increases Attached is revised Exhibit A (Proposed Revisions to the Master Fee Schedules) of Resolution 2004-1 97 to the Agenda Bill scheduled for July 15, 2004, adopting the 2004- 2005 Operating and Capital Budgets and revising fees and charges for services. Several of the Sewer Benefit Area Fee increases were omitted from the original exhibit in error. The Sewer Benefit Area Fees are increased annually based upon an index as stated in the resolutions and ordinances establishing the fees. Attached please find the revised Exhibit. During the adoption process this evening, Council will need to refer to the revised Exhibit. Helga Stover, Senior Accountant CITY OF CARLSBAD PROPOSED REVISIONS TO THE MASTER FEE SCHEDULES JUNE 2004 Fee per gross acre Area / Basin Name A Buena Vista Legoon B Agua Hedionda Lagoon C EncinasCmek D Batiquitos Lagoon 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 $43,000 $43,000 $0 Current Revised Low High Low High Runoff Runoff Runoff Runoff $1,837 $3,007 $1,865 $3,052 3,949 6,463 4,009 6,560 2,953 4,832 2.997 4,905 40 66 41 67 License Tax on New Construction-mobile homes $1,561 $1,582 $21 ~~ Sewer Benefit AraKes- -- Current Revised Chanae Area A Area B Area C Area D Area E Area F Area G Area H Area I Area J Area K Area L Area M $ 379 $ 384s 667 675 1,645 1,675 1,648 1,678 2,430 2,475 2,443 2,488 103 105 808 808 387 392 1,333 1,351 2,690 2,725 1,054 1,067 52 52 5 8 30 30 45 45 2 5 18 35 13 Bridge & Thoroughfare District #2 Fees Current Revised Change Zone 5 $239 $246 $7 Zone 20 Zone 21 42 1,242 1,278 990 1.032 Bridge & Thoroughfare District #3 Fees Current Revised Change Fee Der ADT $1 38 $1 40 $2 Agricultural Mitigation Fees Current Revised Change $8.858 19.744 $886 Exhibit A To: City Manager From: Performance Measurement Resource Team During this year’s budget discussions, there have been references to the results of the Citv of Carlsbad 2003 Public Opinion Survey Report published by the Social Behavioral Research Institute (SBRI). That report provided the results of the City-sponsored annual resident survey. In 2003, one question in particular queried citizens on Open Space preferences. The pages reporting the results are attached to this memo for reference. The basic question that was asked was, “Suppose you had 100 dollars of City funds to spend among these four different proposals. How much of the 100 dollars should go toward:” 1. Preserved and Protected Open Space 2. Interconnecting Trails 3. Open Space and Trails Park 4. Active Use Park Definitions of these types of Open Space uses were provided for clarification purposes. Those definitions are attached as well. The basic results of the average of dollars residents allotted to the four different types of open space uses ranged narrowly f?om approximately $23 to $26. Bearing in mind the margin of error in this survey is +/-3 percent, the difference between these allocations is statistically insignificant. SBRI also provided tables to show what percentage of residents chose a particular type of open space as their first, second, third, and fourth choice etc. The results indicate a statistically equivalent first preference for Preserved and Protected Open Space, Interconnecting Trails, and Active Use Parks (31%, 30%’ and 31% respectively) and a somewhat lesser first preference for Open Space and Trails Park (24%). Lastly, SBRI reviewed the data for a correlation between length of residency and preferences. The only statistically significant difference they noted is that newer residents (six years or less) favored the Interconnecting Trails choice (28% for newer residents vs. 24% longer-tern residents). Staff has viewed these results to be very usefbl information. It is clear there is a nearly equivalent demand for all four types of Open Space uses. Carlsbad residents as a whole did 0 Page 1 not express a clearly preferential type of Open Space use; rather it was expressed that there is a nearly statistically identical resident demand for all four types of Open Space uses in Carlsbad. . The next obvious question one might ask is,” How much of these varied types of Open Space uses already exist?’ That information is not readily available. The aggregate area of Open Space can be estimated using GIs databases, however data is currently not being categorized into the four typical uses noted in the SBRI survey. Recognizing the resident demands for the varied Open Space, staff has created a means by which that demand can be met. There is a constant flow of City resources, volunteer efforts, and developer contributions being devoted to this overall community value. There are implementation plans in-place and ongoing in most cases for acquiring, developing, and maintaining the varied Open Space types. For instance: The continuing dedication of private property as Open Space happens routinely through the development process. Developers must set aside 40% of their property as open space in one form or another - Preserved, Trails, andor Parks. 0 The City is in the final stages of having a Habitat Management Plan approved by all wildlife agencies. This plan sets aside a wide variety of various Open Space types. 0 Through the implementation of the City’s Capital Improvement Plan, fees paid by developers (and therefore paid by residents purchasing new homes) are being used to construct active use parks. 0 The City has a model Citywide Trails program that has a well-developed partnership and volunteer component to acquire, build, and maintain trail segments. In summary, staff recognizes the resident demand for varied Open Space opportunities. This demand is being met largely by the implementation of Carlsbad’s General Plan Open Space and Conservation Element, the regulation of development in conformance with the standards in the voter-approved Growth Management Plan, and implementation of an ambitious Parks and Citywide Trails development program. C: Assistant City Manager Community Development Director Department Heads 0 Page 2 open spaces Respondents in 2003 were invited to give their opinions on four proposals about the use of land and resources devoted to open space, trails, and parks. The four proposals were descrii to the respondents who were then askedto imagine that they wereto allocate $100 of city hds among the four proposals. The proposals were labeled Preserved and htected Open Space, Interconnecting Trails, Open Space and Trails Park, and Active Use Parks. The proposals were presented to each respondent in a randomized order. The descriptions of the proposals given to the respondents are found on 4123 in Appendix k Table 52 summarks how respondents allocated thm funds. As the table shows, the distribution of funds was fhirly even The average allocation to active use p& was a little lowerthan I ! the allocations to the preserved and protected open space and interconnecting trails proposals. The amountall~toeachproposaldidnotdifferbyregion I : I City of Carlsbad 2003 Public Opinion Survey Repart; SBRI 57 Figure 2: Allotment to Open Space,Proposals, 30.0 The dollar valk that respondents assigned to each proposal were converted to rankings. Proposals allotted more money than three other proposals were ranked first, those allotted more than two other proposals were ranked second, and so forth. Table 53 shows the rankings residents gave to the difkmt proposals. This table reveals an interesting pattern that warrants further attention Specifically, though active use parks had the dest average allocation, as indicated in Table 52 and Figure 2,29.8 percent of those providing responses ranked active use parks first compared to 3 1 .O, trails, and open space and kds park respectively). This finding suggests a look at the ranlang distn'butions may be infibnative. Figures 3 through 6 show these distributions. City of Carlsbad 2003 Public Opinion Survey Repoa; SBRI 59 Figure 4: Interconnecting Trails. 40 30 20 10 0 13 - First choice Third choice Second Choice Fourth Choice City of Carlsbad 2003 Public Opinion Survey Report; SBRI 61 Figwe 6: Active Use Park. previous data collected fhm Carlsbad residents suggests that the number of years the respondent had lived in Carlsbad was sipficantly related to the importance residents put on trails and open spaces. Specifically, the longer the respondent had lived in Carlsbad, the less importance they placed on trails and preserved open space. Given this relationship, it is worthwhile to examine how newer and long-time residents allocated hds among the four open space proposals. For the purposes of this analysis, newer residents refm to residents who have lived in the City of Carlsbad for six years or less, while Zong-time residents have lived in Carlsbad for seven or more years. First Choice Third Choice Second Choice Fourth Choice City of Carlsbad 2003 Public Opinion Survey Report; SBRI 63 40 35 30 Figure 7: Allocations by Length of Residence. Newcr Resident Long-time Resident Length of Residence in Carlsbad Bnserved& interconnecting F'rotected Open Space Trails =Open Space & Trails Park mctive Use parks City of Carlsbad 2003 public Opinion Survey Report; SBRI 65 QPARKUSE Has anyone m your household used a Carlsbad public park during the past twelve months? 0. No 1. Yes 8. DON’T KNOW 9. REFUSED QPARKRAT How would you rate the condition of the parWs andor park fidties you or your fbdy used? 4.l5cceht 3. Good 2. Fair 1. Poor TOP mofe land and resou~ces devoted to open space, trails and parks. I would like to describe four differentproposalstoy~~dthenaskforyourapinianabouttheseproposals. TOP1 The first proposal is far the city to purchase or acquire undeveloped open space to preserve and protect. This space would not be accessible by the public, but would be left untouched as habitat for native plants and animals. I will refer to this -sal as ‘’pmerved and protected open space.” Mow feedback finn Carlsbad Citizens has helped us leam that people would like to see e TOP2 The next praposal is far the city @,create wakg and b&bg hails that inteacanneCt ~w+out proposal as “m- - txails? the city. These trails would be bdt across cumntly undeveloped land, and would provide connecticms lxhveenothertrailsbuiltwithinandammdnei~andokpublicareas. Iwillrefbtothis TOP3 The next propod is forthe city to purchase or acqUireundeweloped apen space to build a nature park This park would include loop tds built within the park, and a limited number ofpicnic areas. I will refmto this proposal as “open space andtrailspe 8. DON’T KNOW 9. REFUSED QPRKMTP What was the name ofthe park or facility and why do you rate it 8s “pof’? City of Carlsbad 2003 Public Opinion SuweqfReport; SBRI 123 FY 2004-05 Budget Adoption June 22,2004 Council Chambers (continued from June 15.2004) 1. 2. I x Proaram Options for Council Discussion and Vote: See attached Option slides (Below Is tho language council may u80 depending on the option chocrsn) A. Lighting & Landscaping District #l 0 IF OPTlON 1 : Authorize use of the General fund to cover deficits 0 IF OFTION 2: Appropriate $8O,OOO from the Lighting and Landscaping Districts to pay for the engineer's report and authorize a loan from the General fund, if needed B. TennisCourtr, 0 IF OPTION 1: No action 0 IF OPTION 2: Amend the Capital Improvement Program to appropriate $1 million from the Public Facilities Fees fund to construct 7 tennis courts 0 IF QpttoN 3: Amend the Capital Improvement Program to appropriate $3 million from the Public Facilities fees fund to construct a muRiurt tennis complex Adorrt Bud- for FY 2004-05 subject to any changes previously voted upon by Councit Adopt Gann limit Adopt Changes to Master Fee schedule Staff Contact Kevin Branca Ken Price Resolutions 2004495 1215 384 2004-196 2004-197 1 PROOF OF PUBLICATION (2010 & 2011 C.C.P.) This space is for the County Clerk’s Filing Stamp 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 Proof of Publication 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 City of Oceanside and the City of Escondido, Court Decree number 171349, 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: I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at SAN MARCOS California I Day of May, 2004 This I I W Signature NORTH COUNTY TIMES Legal Advertising The Coast News Decreed A Legal Newspaper by the Superior Court of San Diego County. Mail all correspondence regarding public notice advertising to The Coast News, P.O. Box 232-550, Encinitas, CA 92023 (760) 436-9737 Proof of Publication STATE OF CALIFORNIA, ss. 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 principal clerk of the printer of The Coast News, a newspaper printed and published weekly and which news- paper has been adjudged a newspaper of general circulation for the cities of Del Mar, Solana Beach, Enchitadcardiff, Carlsbad, Oceanside, San MarcosNista and the County Judicial District by the Superior Court of the State of California, County of San Diego (8/4/94, #677114, B2393, P396); and that the notice, of which the annexed is a print- ed copy, has been published in, each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: Mav 20.2004 Icertify under penalty of perjury that the foregoing is true and correct. Executed at Encinitas, County of San Diego, State of California on the 20th day of May, 2004. / Clerk of the Printer Space above for County Clerk’s Filing Stamp NOTICE OF WBUC HEARING CITY OF CARLSBAD The City of Carlsbad will hold a publlc hearing on Tuesday, June 15.2004 at 6:00 p.m. in the Council Chambers of City Hall, 1200 Carkbad Village Drive. Catisbad, California, to diswss the 2oo4-05 Operating wand the ZOOME to Bulklout Capltal Improvement Program Budget. Thii wet indudes an appropriation of the 200445 AB 3229 funds in the amount of 5233,710 to be used to fund the police year round bicycle patrol prcgram. Also included will be discussion on the Carisbad Municipal Water District Operating and capittlr Improvement Program Budgets as well Bs dlscussion on behalf of the Housing and Redevebpment Board regarding the Redevelopment Budgets. The City the Appropriation Limitation for flscnl year 2004-05. council wlll818odio4uio~ my Qvelopment fees andgeneral fees end and commetltstothe Citycorprdl. Interested parties are invited to anend this meeting and present their views Copies of the budget and proposed lee changes are available for public I inspection at the City Clerkrotlice, 1200 carlsbad Village Drhre, OT the two libraries: Cole Llbrary, 1250 Carisbad Viliage Drive, Catisbad and Dove Library, 1775 Dovo Lane. Cartsbad. Written and telephone inquiries may be directed to Lisa HiIdabrand of the Flnance -, 1635 Faraday Avenue, Catisbad; 602-2430. CN 8134 May 20,2004. City of Carlsbad 2004-2005 Operating Budget Workshop Managing Resources Effectively ~~ Budget Calendar Council Meetinas May 18 - Capital Budget Worksho June 1 - Operating Budget Workshop June 15 - Operating and Capital Budget - Public Hearing and Adoption Other Public Meetinas June 9 - Citizen’s Budget Forum 1 Faraday Center 1635 Faraday Avenue 760-602-2430 Informal discussions with staff Annual Process - e 2 .- City Budget Capital Improvemen City of Carlsbad Budget City of Carlsbad Combined Budget Capital 26% \ Redevelop-/ ,/ ment 1% Special Revenue 5% $205.8 million 3 City of Carlsbad Cash Balances General 65% J Economic Overview Revenue Estimates State's Impact J Forecast for the Genera J Budget Requests JOther Fund Summaries Fund 11 J Program Financing Option 'I 4 li 1 National Perspective 1- (0 - 8 I --.I- f. .. Bi -2 O -- -1 11 Ill IV I m Positive direction *Consumer spending .Business investmeni *Inventory growth One weak area *Job growth 'I ___ ~ Economic Perspective State of California Growing . . .slowly UCLA forecast -Strenqths: -Weaknesses: -Personal Income -High household -Housing debt -Taxable sales -Gasoline price increase -State deficit 5 State of California I1 Structural Deficit = $6 billion and growing -Reflects the reliance on borrowing and other one-time Budget Deficit Fl!&m 12 Large OperaHng Shortfalls to Persist Under May Revislona (In BBfiw Fmd savinqs P Why is This A Concern? Three of the largest revenue sources are controlled in some manner by the State Over 60% of General fund revenues are "at risk" General Fund Revenues 6 State Take-aways Early 1990's - $2.5 million Fiscal year'04 - $1.3 million Fiscal year '05 - "Triple Flip" (swap of 1/4 of the total Sales Tax) What's next??? E\ Ballot Initiatives LOCAL Governor's Agreement -Signatures have been submitted -New proposal by the LOCAL group and the Governor's office 7 I The Local Taxpayers and Public Safety Protection Act (LOCAL) Sponsored by: . - League of California Cities - California State Association of Counties - California Special District Association Requires a maioritv vote before the State can take and use local government funds Strengthens mandate reimbursements ? I 0 0 Governor's Agreement Permanently reduces VLF rate Exchanges VLF backfill for tax Mandate relief Prohibits future takings of local taxes Guarantees payment and eventual reversal of Triple Flip 8 Govern0 r's Ag reemen t Effect on Carlsbad $0 Now 2005 2006 2007 2008 Growth Rates Property Tax Vs. VLF In Millions 20% 18% 16Oh 14% 12% 10% 8% 6% 4VO 2% ovo '97 '98 '99 2000 v1 '02 v3 w '05 t6 I - VLF * Property Tax I 9 II Carlsbad's Economic Profile 'U .- Home prices Taxable transactions Tourism Population growth I Unemploy,ment Rates 8% I 1 7% 6% 5% 4% 3% 2% 0% I I I I I I 1996 1997 1998 1999 2000 2001 2002 2003 2004 10 Median Home Prices In thousands 1999 2000 2001 2002 2003 Fiscal Year Residential Permits Future Is Master Planned Communities aCalavera Hills 689 units OBressi Ranch 623 units .La Costa Valley >2,000 units I .Oaks mRidae Future .Greens 93 95 97 99 01 03 05 07 09 11 Fiscal Year I 11 I1 Assessed Values and Property Taxes Millions $35 12% increase in assessed values $14.0 $Isrn t $12.0 $10.0 T FV ' 97 98 99 2000 '01 '02 '03 '040 '05e 0 Assessed Values -2- Property Taxes i - $30 925 $20 $15 $10 $5 7 SO '- '- .- .- .- Assessed Values and Bllllons Property Taxes Millions $18.0 1 $35 Only 5% increase in property taxes due t to State impact $16.0 $14.0 I $12.0 $10.0 $2.0 $0.0 t 97w 98 99 2000 '01 '02 '03 '04e '05e 0 Assessed Values -e- Property Taxes 1 - $30 825 $20 $15 $10 $5 l- so * .- .- .- -- 12 Property Taxes Historic and Future In Millims $50 -I I 20% 15% 10% 5% ,..... 0% -5% -10% -15% 93 '94 95 '96 97 p8 99 2000 '01 '02 '03 '04 '05 '06 '07 08 '09 '10 I-+Property Taxes -Annual O/o Growth] Sales Taxes I I Historic and Future ~n~llllm 7% increase for FY '05; 5% after State effect 1 20% I 18% 16% 14% 12% 10% 8% 6% 4% 2% O0lo I '96 '97 '98 99 2000 '01 '02 '03 'W '05 '06 '07 W '09 '10 I I+ Sales Taxes -Annual Yo Growth 1 13 I I 11 Sales Taxes by Category 11 $26.4 million Construction 3% M isc Food < f 0% Transient Occupancy Taxes I1 Recovery back to 2001 levels expected in 2005 98 99 00 01 02 03 04e 05e 0 All Others Q La Costa @I Four Seasons New Hotels 1 I 'I 14 Hotel Rooms in Carlsbad '05 1-1 Harnpton Inns 1-1 Inns of America Marriott, Residence Inn Grand Pacific 97 Vehicle License Fees Estimate: $5.1 million $8 $7 $6 $5 $4 $3 $2 $1 $0 7 -- -- '97 '98 '99 2DM) '01 '02 '03 'W '06 '07 '08 y)9 '10 15 Franchise Taxes n Mllllons $8 , $7 5 '99 '00 '01 '02 '03 '04 '05e Natural Gas Prices Monthlv Natural Gas Price Forecast 16 General Fund Revenues Projected at $96.1 million Franchise* 5% 10% *Five sources make up 77% of General fund revenues. General Fund Budget FY 2004-05 Revenues: $96.1 million Budget Requests $90.5 million Fund Transfer .3 million Projected Surplus: $ 5.3 million 17 General Fund Balance (In Thousands) Estimated Balance at 6/30/04 Plus: FY 05 Surplus Less: Commitment to Estimated Balance at Golf Course I 6/30/05 73.9 583 million million 1580 million $ 64.2 million Forecast Assumptions CPI: Taxable sales Energy prices Development Personnel costs Position growth Other expenses New facilities 2.2% to 3% 5% to 6% No spikes Citywide projections 5-yr Agreements 6-9 new per year CPI + population Per CIP ! I 18 I '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Net Revenues over (under) Expenditures I 'I I General Fund Revenues and Expenditures i160 ; 140 a20 a00 $80 $60 440 I '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 19 I Forecast Corn parison Millions $15 $10 $5 $0 -$5 -$lo -q** '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Net Revenues over (under) Expenditures Major Uncertainties in the Forecast State Budqet -$6 billion + structural imbalance -May last for years -Unknown solution Transnet Reauthorization 20 Half-cent sales tax for regional transportation Approximately $2 million annually for Carlsbad Reauthorization on ballot Forecast Comparison Millions I * I Balanced I '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 -84 ' Net Revenues over (under) Expenditures 21 I Operating Revenues By Fund Type Internal Servlces 24% 2% Specbl Revenue 6% I Total = $154.2 million Operating Revenues By Source Interdept. 10% Llcensesl Permlts I Fines- Aer . ( 4% 1% lntergov't 22 Budget Requests Council adopts budget Cheryl Gerhardt Sen io r Accountant -m- Budget Process [I Finance Distributes Budget Manual to Finance 23 Managing Resources Effectively No noticeable service levels No Layoffs cuts in services and Identify new revenue generation opportunities A balanced budget and long-term plan for staying in balance Budget Overview Budget $147.6 million No New Positions Proposed - .34 RE hourly Total Workforce 646 full time 147.93 FTE hourly i 24 Operating Budget Internal Redevelopment Service / 1% Revenue \, - / 7% v I Total Budget = $147.6 million General Fund Pollcyl contingency 7 /Leadership Admin Svcs Public Work Communlty Development Total Budget = $90.5 million I I 'I 25 Total $84.9 L * General Fund Budget 11 $loa P $0 In Millions no4 6.6% 0 - Total $90.5 FY05 I d II 1" Personna M & OI Capital Outlay & TranSfers 11 Public Safety Police Chief - Tom Zoll 26 Project Replaces computer- aided disDatch Public Safety Technology Project 27 Computer-Aided Dispatch Com pu ter-a ided dispatch equipment and software for communications center Interfaces to AFUIS and other criminal justice databases 9-month installation Mobile Office Will allow officers to receive calls on their in-car computer. Will provide direct access to law enforcement databases, photos, email, maps, etc. 28 Automatic Vehicle Location I Real-time tracking of police units. Closest unit to call is dispatched. Managing Overtime Developing guidelines to mor efficiently manage our resources Streamline training Flexible minimum staffing to tailor to varying needs Beat alignment with new CAD will support flexible staffing 29 Public Safety Fire Chief - Kevin Crawford North County Dispatch Joint Powers Authority Joined in July 2003 NCDJPA represents Carlsbad, Del Mar, Encinitas, San Marcos, Rancho Santa Fe, Solana Beach &Vista Boundary Drop (January 2004) 30 Regional Efforts Vision Functionality Common Approach In Delivery Resource Sharing Remove Obstacles I Service Carlsbad Fire Department e 0 e Efficiency Effectiveness Local Control Minimization or loss of any of these three underpinnings will lessen the Fire Department's functionality Reqionalization at varvinq levels will enhance these three quidina Principles 31 TOP Quality Service Jim Ad mi nistrative Elliott Services Director Promote Volunteerism in all City departments - Citywide Vol u nteerism Volunteer Program Help the organization crea -Commitment Toward engaging volunteers i I. 1. I ._ ' 32 Volunteer Program I Targeted recruiting Creating community contacts - Clearing house for volunteerism Volunteer Program Active Volunteers 646 - Library 199 - Recreation 250 - Safety 120 - Boards and other 77 33 Top Quality Service In the quiet little town of Carlsbad... II Top Quality Service A mpical resident contemplates life ... 34 Top Quality Service Top Quality Service II No ... 35 I Top ~- Quality - Service .- -. ! Top Quality Service The City of Carlsbad 36 Top Quality Service I To the Rescue,,. Top Quality Service 37 Current North County sites - Oceanside Post Office - Escondido City Hall Appointments for quick personal service from Carlsbad's best employees One stop shopping Photos File papers Questions answered Low cost - offset by revenues No additional space or staff needed I Top Quality Service 38 Synthetic Turf at Stagecoach Park Synthetic Turf at Stagecoach Park Cost Savings - $26K annually (water, fertilizer, seed, etc.) - Stafftime (mowing, weeding, etc.) Total Cost = $1.6 Million 59 IT Disaster Recovery Plan How long can you survive without Databases Networks Systems (Payroll, Billing, work order, etc.) Prioritize recovery plan Contingency operating plans i 40 Community Engagement Programs ! Connecting Community, Place and Community Development Sandra Holder Community Development 41 I Carlsbad Centre City Gateway Land Use Vision and Strategy Core Study Area Agua Hedionda Lagoo Road on the north Palomar Airport Road on the south Veteran's Park & Golf course on the east 1-5 on the west I Civic Facilities Civic Center Plan - Identify Components (Gov'tlNon-Gov't - Identify Location (Coastal Orientation) - Develop Conceptual Design Uses) - Create a Development Strategy II Related CCPS Goals: - Training Center - 'Public Works Center - Centre City Gateway - Civic Engagement 42 North State Street Redevelopment Conceptual Plan for Wlage Green Development Standards Review & Revisions to Village Master Plan Objective: Proactive Management of Land Resources Ponto Area Remaining Areas - Power Plant - Carlsbad Blvd properties Objective: Proactive Management of Land 43 Community Services , Cliff Lange Library Director Community Services FY 2004-05 Budget Highlights II Library Managing Resources Effectively 44 Electronic sign-up for Internet II access E- Ma i I N ot if ica t ion Automated Telephone Notification Technology Enhancements: Cost $61,000 The Learning Center 11 Former Girl’s Club property purchased Design, site plan for CUP Purchase and install modular buildings Furnish and equip Move- i n $766,000 (CDBG funds] Basic reading and writing instruction Homework tutoring Computer lab Bilingual library resources The Learning Center "All the fools you need to succeed" Learning Center Programs 0 0 0 0 The Learning Center "All the fools you need to succeed" Learning Center Programs 0 0 0 0 Managing Resources Effectively 11 I b Community Services FY 2004-05 Budget Highlights II I ONLINE REGISTRATION 47 I Benefits to Citizens Improved Customer Service With Accurate &timely registration Additional registration option Immediate confirmation Up-to-date facility availability Econnect - 789 Registrations (75%) - $32,000 Phone-in - $12,000 - 289 Registrations (25%) Online Registration Phase One - Aquatics - May 15,2004 48 . Online Registration Final Phase JRecreation - 8/04 Incorporate Carlsbad Connect into remainder of Comm’unity Services JSeniors - 1/05 JLibrary - 5/05 JArts - 4/05 0 Online Registration Final Phase Community Services Staff Training Marketing Online Availability - Program Registration - Facility Reservation Viewing - d II Just Click!! Public Works Lloyd Hubbs Public Works Director 50 Phase I1 Recycle Water Plant Plant distribution lines Equalization Basin -- Construct ion Summary of costs Ultimate water demand = 28 MGD Recycled water = 8-10 MGD Over 1/3 of water demand Reduce impact of drought i I I- 51 Phase I1 Recycle Water Plant Schedule - Phase I - - Phase I1 - Operational Operational summer 2005 PU m p .Stations Sanitary Pump Station Abandonment - Gateshead - Vancouver 0 a - Simsbury - Villas - Faraday (upper) - Faraday (lower) - La Golondrina - Meadow 1 - Woodstock PU m p .Stations Sanitary Pump Station Abandonment - Gateshead - Vancouver Cost estimate $1,390,000 I I $75k / yr reduction 52 I Fleet Replacement Summary I FY03 I FY04 I FY05 I TOTAL 11 IDownsized Replacements. I 10 I 9 I 7 I 26 11 Pillars of top quality service - cost - Quality - Service i 53 Maintenance Assessment Program = Quality 11 Buildings Parks Buildings Parks ! ’, .. , Other Funds 54 I Sanitation Enterprise Fund I Interest Other Estimated Revenue = $7.0 million Budget = $6.9 million Sanitation Fund Forecast Rate lncrease 370 390 3% 3% 3% 56 II Solid Waste Enterprise Fund Ill ? I Other . Recycling Estimated Revenue = $2.4 million Budget = $1.8 million I1 I Special Revenue Funds II Total Budget = $10.0 million Si 'I .. 57 Internal Service Funds Work II Total Budget $14.7 million 11 I "I i South Carlsbad Coastal Redevelopment Area Fund 1400 1200 1000 800 600 400 200 0 FY 05 n thousands 118 Admin Goals El CIP I Budget = $1.3 million - Operating $435K Goals - CIP$851K - Land use strategy - Center City Gateway CIP - CB Blvd/Encinas Creek Bridge - CB/Breakwater turn lane - PAR widening & intersection 5 8 Village Redevelopment Area 11 ~ 3000 2000 1000 0 FY 05 in b9ousands Fund , ! II Budget = $2.9 million - Operating $444K - Debt Repay $1.1 Goals - North State Street CIP - CUSD/Senior Center - CIP $1.4 Purchase Debt Repayment W Goals i 81 Admin Program Financing Options 59 Lighting and Landscaping District #l Three Zones - Citywide Medians - Street Trees - Citywide Street Lights Formed in 1983 Rates locked in place by Prop 218 in 1996 Current Situation Medians zone is out of cash I -Will require a loan of $309,000 from Street Lighting projected to be out of cash by 2008 - No replacement funds the general fund in 04-05 Street Trees out of cash by 2008- 2010 60 Projected Deficits I , 61 Increase Assessments Vote required Report needed to provide more accurate estimates - Report can consider all or only certain . zones - Cost Of UP to $80,000 - Not in proposed 04-05 budget ! I 62