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HomeMy WebLinkAbout2005-06-07; City Council; 18159; 2005-06 Operating Budget Workshopm 0 0 hl L 4 hl 2 1 b M c .rl F.l a a s L) .rl rl P 1 a 0 c, $4 a, u U a a, fi 5 c, a 01 a B U $4 0 a a, $4 a, 5 $ a .rl a, L) a, $4 rl .rl L) G U z m 0 I h I a .. z 0 F 0 a -I G z 3 0 0 ___ AB# 18,159 06-07-05 MTG, CITY OF CARLSBAD -AGENDA BILL TITLE: - 2005-06 OPERATING BUDGET WORKSHOP DEPT. HD. CITY ATTY. CITY MGR= RECOMMENDED ACTION: Accept report. Set public hearing for June 21,2005. ITEM EXPLANATION: The Operating Budget work session on June 7, 2005 is an opportunity for the City Council to review the 2005-06 Operating Budget. City staff will be making presentations and will also be available to answer questions. The recommendations for the Capital Improvement Program were presented to Council at the May 1 7th council meeting. In addition, a Citizens’ Budget Workshop will be held on Wednesday, June 15, 2005, at 500 p.m. at the Faraday Center, 1635 Faraday Avenue, Room 173B, to provide the public with an opportunity to discuss the Operating budget and Capital Improvement Program with staff. The public hearing and adoption of the 2005-06 Operating Budget and Capital Improvement Program is scheduled for the June 21,2005 Council meeting. OVERVIEW The proposed Operating Budget for 2005-06 totals $1 56.5 million, an increase of $8.9 million, or 6%, from the 2004-05 adopted budget. Operating revenues are estimated at $162.4 million, which is a $2.7 million increase over the current year projections. The recommended General fund budget is $96.5 million with estimated revenues of $104.8 million. This is a 6.7% increase in the budgeted expenditures for the year. Revenues - The majority of the City’s revenues come from taxes. Property taxes are expected to grow to over $39 million in the next year; however the City will only receive $37.3 million of that due to reductions adopted in the State of California’s budget in fiscal year 2004-05. The legislation requires that Carlsbad pay the State $1.8 million in property taxes both in 2004-05 as well as in 2005-06. Sales taxes are expected to grow by 8% and reflect not only steady consumer spending but also continued growth in several of the City’s shopping centers. Transient occupancy taxes will reach approximately $10.3 million, an increase of 5%. Overall, the City’s revenue projections reflect steady consumer spending with moderation in housing price increases as interest rates rise. New building permits are predicted to slow slightly as new housing developments come on line but absorption rates drag out. And finally, tourism is expected to continue strong, with TOT receipts surpassing 2001’s level by the end of 2005 and growing in the future with the addition of more available rooms. More information on all of the City’s revenues and programs can be found in the attached exhibits. Budseted Expenditures - The increases in the General fund revenues, as well as other fund revenues, enables the City to continue to provide top-quality services. The goal for the 2005-06 budget is to effectively manage today’s resources for tomorrow - to manage our current resources so that we are able to deliver the same quality and level of our services while maintaining a balanced budget for now and into the future. We believe the recommended budget will achieve that goal. Some of the new services in the budget are highlighted below. PAGE 2 OF AGENDA BILL NO, 18,159 New Facilities - The City has a large number of major capital projects scheduled to be built over the next five years. As the City completes these projects, the costs of maintaining and operating the facilities are added to the Operating Budget. Three new parks are planned to open in 2005-06: Aviara, Hidden Canyon and Pine. The budget includes 4 new full-time Parks personnel and 2.1 new hourly FTE Recreation personnel for a total of 6.1 new positions needed to staff the new parks. The Carlsbad recycled water facility is also scheduled to open in 2005-06. The facility is located at the site of the Encina Wastewater Facility and will be run mainly through a contract with the Encina Wastewater Authority (EWA) who operates the wastewater facility. Two new positions are requested to assist in the operation and maintenance of the plant and to serve the additional recycled water customers. Public Safety - Public safety has always been, and remains, a top Council priority. After reviewing the current staffing requirements and the population growth in the City, two additional Police Corporals are requested to enhance the department‘s ability to provide community-oriented policing. This program puts more officers in the community so that they can identify potential problems before they happen and develop long-term solutions when needed. The Police department is also requesting a Crime Analyst to provide data and statistics allowing for increased efficiencies and smarter policing. Lastly, the Police Department is requesting to add 3.42 new hourly FTE school crossing guards in lieu of hiring them through a temporary agency. The same level of service will be maintained. 0 0 Customer Service - One of Council’s goals is top-quality service, which means serving our customers well. There are several customer service initiatives funded in the budget this year. One new exciting program being explored next year is the Library’s marketplace service approach. Another goal is to analyze the planning, building, land use engineering and fire prevention functions to identify potential process improvements, recommend specific actions to correct problem areas and improve operations. The goal is to make the Community Development department more efficient and user-friendly to the citizens. Increased Efficiencies and Cost Savings - With the emphasis this year on effectively managing resources, several goals will be targeting efficiencies and cost savings. To improve the efficiency of our existing Public Works department, 7.59 hourly FTE positions will be converted into 4 new full-time Public Works employees. The full-time employees will experience less turn-over as non-seasonal employees, have the needed expertise and can receive the required training to provide a more consistent level of year-round coverage in maintaining existing parks and facilities. One exciting and potentially cost-saving measure may come from creating a Business Improvement District (BID) to pay for tourism promotion services. The Carlsbad Convention and Visitor’s Bureau is exploring this idea. No money has been included in the Preliminary Budget for tourism promotion. For fiscal year 2004-05, it is expected that the City will pay approximately $500,000 for these services. Lastly, as a cost savings, a hard look was taken at the numbers and types of vehicles being purchased as replacements for the City’s current fleet. The results of this review was that of the 58 vehicles that met the replacement criteria outlined in Administrative Order Number 3, only 34 vehicles were selected for replacement of which 4 vehicles were downsized. 0 2 PAGE 3 OF AGENDA BILL NO. 18,159 Other Funds Revenues from SDecial Revenue funds are exDected to total $9.4 million, a $3.5 million decrease from 2004-05. Most of the revenue decline is due to unbudgeted receipts in the Housing Trust fund. The Special Revenue expenditures are budgeted at $10.1 million, a slight increase in anticipated spending. The types of services supported within Special Revenue funds include grants (Section 8 Housing Assistance, Community Development Block Grants), donations, special fees, and assessments (Housing Trust fund, Maintenance Assessment districts). The Enterprise fund revenues, which include the water, recycled water, sanitation services, and solid waste management, are projected to increase by $600,000 to $33.4 million in 2005-06. The Enterprise funds have a total proposed budget of $34.9 million. Rate increases are proposed in both the Sanitation fund and the Solid Waste fund. These are discussed below under the Fees section. The combined Redevelopment Agency budget proposal totals $1.9 million. This is 9.8% lower than the 2004-05 Budget. This decrease is mainly due to one-time costs budgeted for the South Carlsbad Coastal Redevelopment (SCCRA) area master plan in the previous year. The revenue for the Redevelopment Agency is estimated at $2.5 million with increases in the Village Area and decreases in the SCCRA. The assessed values in SCCRA have been declining due to devaluations of the Encina power plant, which is within the redevelopment area. More information about all of the City’s projected revenues and Operating Budget recommendations can be found in the attached exhibits. Fees And Charqes For Services One of the City Council’s goals is to annually evaluate fees and charges for services. Staff has reviewed all fee schedules and is recommending changes as shown on Exhibit 6, and further discussed below. GENERAL CITY FEES Facility Fees - Several minor adjustments are being recommended for facility fees as shown in Exhibit 6-1. These include the replacement of “Poinsettia Soccer Field” with “Synthetic Turf Fields” to include the new synthetic fields coming on line in the future, an increase in clinics/camps and tournament field rental fees, and the creation of a $25 no show fee for resident non-profit groups who may use small meeting rooms at no cost. The Parks and Recreation Commission approved these minor adjustments on March 21,2005. Agua Hedionda Lagoon Permit Fees - These fee increases are shown in Exhibit 6-2 and have not been increased since 1998 for the resident fees and 2000 for the non-residents. The amount of the increase was based on the increase in the Consumer Price Index (CPI) over that period of time. These fee increases were approved by the Parks and Recreation Commission on March 21, 2005 and are expected to generate an additional $3,200 in annual revenue. Ambulance Fees - Ambulance fees have not been increased since January 2000. A survey of current resident and non-resident ambulance rates charged by other San Diego County agencies indicates that Carlsbad currently has the lowest resident rates, and is at about the mid point for non-resident rates. An increase of 20% is being recommended for each of these rates since that is approximately the amount of the increase in the San Diego CPI since January 2000. This will increase the resident rate from $430 to $515 and the non-resident rate from $623 to $745. Our plan is to return next year with an additional 20% increase to bring us closer to the County average rate of $641 resident and $744 non-resident. These proposed fees are shown in Exhibit 6-3 and are expected to generate about $100,000 in additional annual revenue. Also shown in Exhibit 6-3 is a comparison of Carlsbad ambulance rates with other PAGE 4 OF AGENDA BILL NO. 18,159 San Diego County rates before and after the fee increase. The City spends over $12 million annually on Fire emergency services of which the majority of the calls are for emergency medical services. It receives approximately $1.4 million annually in ambulance fees. Trash Fees - The City contracts with Coast Waste Management for exclusive residential and commercial waste hauling services. This contract was established in 1997 and trash fees have not increased since then. Currently, Carlsbad’s residential and commercial trash fees are the lowest in the County. Coast Waste requested a rate increase and a rate study was performed by an outside consultant. Based on this study, it was determined that a 6% rate increase for residential customers, and a 7% increase for commercial customers would be reasonable based on the costs of the service. This increase, which also includes a 7% increase to the Storm Water portion of the trash fee, will increase residential fees from $16.47 per month to $17.50 per month. For a list of all the proposed trash fees see Exhibit 6-4. 0 Sewer Fee - The City of Carlsbad has one of the lowest residential sewer rates in the County. In order to cover the increasing cost of providing the service, staff is recommending that both commercial and residential rates be increased 4%. These rates are listed in Exhibit 6-5. Cancellation Fee - The cost to issue a refund check for a cancelled class is approximately $20. Currently there is no fee charged to issue refund checks. Staff is recommending the addition of a refund fee of $20 to be charged in instances where the refund is due to a request by the customer to cancel the class. No fees will be charged when the class is cancelled by the City. DEVELOPMENT RELATED SERVICE FEES Last year staff completed a fee study to determine the cost of services. On an average, the cost of providing the services increased 25% from the last time a fee study was done in December 2000. This was mainly due to inflationary costs. Based on this, Council adopted a 15% increase in development fees in 2004 and staff indicated that they would return the following year with an additional 10% increase to these same fees. Exhibit 6-6 lists these recommended fee increases. In cases where the difference between the cost and the fee was less than lo%, the fees were increased so that the fee did not exceed the cost of providing the service. Building Permits and Plan Checks - In the December 1997 fee study, it was determined that the best way to measure the cost of Building Department services was to review them on an overall level as opposed to the cost of providing one unit of service. Using this methodology, revenues and costs for the Building Department were reviewed using a rolling ten-year average adjusted as necessary. The analysis of the ten-year rolling average includes two documents used to calculate a building permit fee: the Uniform Building Code (UBC) Table l-A and the regionally approved ICC Valuation Table. Currently, the 2001 UBC table is being used and the 2003 Valuation Tables. Staff is recommending that the 2001 UBC table continue to be used since it is the most recent published table. The valuation tables determine the value of construction per square foot based on the occupancy and type of building. The San Diego Area Chapter of the International Code Council (ICC) updates these tables annually. Staff is recommending that the new April 2005 valuation tables be used which are the most recent ones approved by the ICC. In order to make the fees equal the costs of providing the service, staff recommends using the current percentage of 55% of the fees shown in the UBC table and further recommends using the updated valuation factors. Using these current factors to determine the fees for building permit plan check and inspection services will bring, the projected revenues up to equal the cost of providing the service. This results in an approximately 8% net increase in building permit fees per typical project. PAGE 5 OF AGENDA BILL NO. 18,159 A complete listing of the current and proposed development-related service fees is shown in Exhibit 6-6. DEVELOPMENT IMPACT FEES Each year, several development fees are adjusted by the change in the Engineering News Record (ENR) Index as required by the respective fee programs. The adjusted fees are attached in Exhibit 6-7. In addition to the required ENR changes, staff is recommending an increase in the Park-in-lieu fees due to the increasing cost of land in Carlsbad. The proposed increase in land values is supported through actual sales and acquisition experience over the past several years, and through the results of a May 11, 2005 study regarding the City Park-in-Lieu fee structure prepared by The Tagg Company / Randy Tagg, MAI, California Certified General Real Estate Appraiser. The existing fees are based upon land values of $300,00O/acre (NE, SW, & SE Quadrants) and $400,00O/acre (NW Quadrant). The proposed fee is based upon land values of $732,00O/acre (NE, SW, & SE Quadrants) and $977,000/ acre (NW Quadrant). A change in the density component of the fee calculation is also being processed as a separate item as it is set by Ordinance. The recommended fees are shown in Exhibit 6-8. EXHIBITS: 1. 2005-06 Preliminary Budget (Overview). 2. Operating Funds, Projected Fund Balances for FY 2004-05 and 2005-06. 3. Operating Funds, Revenue Estimates for 2004-05 and2005-06. 4. Operating Funds, Budget Expenditure Schedule FY 2001 -02 through FY 2005-06. 5. Personnel Allocations for 2004-05 and 2005-06. 6. Fee Exhibits. DEPARTMENT CONTACT: David Barnum, dbarn@ci.carlsbad.ca.us and Lisa Hildabrand, Ihild@ci.carlsbad.ca.us, (760) 602-2430 CITY OF CARLSBAO 2005-06 PRELIMINARY BUDGET Exhibit 1 Carlsbad is a full-service City providing the following: 0 Police Department Development services 0 Fire Department, including paramedic 0 Street construction and maintenance 0 Water delivery system 0 Library and Arts programs Sewer system Recreation programming for all ages 0 Solid waste services Parklands Housing 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 goals based on Council’s direction. These operational goals are the basis for the development of the operating budget. City of Carlsbad 2005-06 Strategic Goals Balanced Community Development - A city that connects community, place and spirit, through balanced and economically sustainable land uses. Citizen Connection And Partnership - A city that embraces Community connectivity through the effective use of technological and interpersonal mediums. Communication - Ensure that community members, Council and staff are well informed, continuing to be a more responsive government while providing a high level of citizen confidence in its government. Environmental Management - 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. Financial Health - Pursue and implement proactive strategies that supporl sustainable economic health and manage fiscal resources effectively. Learning, Culture & Arts - Promote and support continuous learning, cultural opportunities and the arts within the community and the City organization. Parks / Open Space / Trails - 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 Managemenl Standards. Top Quality Services - 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. 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. Exhibit 1 Carlsbad’s operating budget is a tool that guides the achievement of Council’s vision and goals for the City. It allocates the resources and sets the priorities for all of the programs offered by the City. Thus, it is an integral part of making Carlsbad a wonderful community in which to live, work, and play. ECONOMIC PROFILE The US economy has experienced steady growth over the past several years, slowing slightly in the more recent quarters. According to preliminary 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 3.5 percent in the first quarter of 2005. In the fourth quarter, real GDP increased 3.8 percent. The major contributors to the increase in real GDP in the first quarter were personal consumption expenditures (PCE), private inventory investment, exports, residential fixed investment, and equipment and software. Despite the steady growth in GDP, UCLA Anderson Forecast Director Edward Learner stated in his March 2005 report “that historically economic expansions have not lasted very long, with five of the last nine lasting only 14 quarters or less.” The current expansion is 12 quarters old right now and he sees no growth spurt on the horizon that will extend it much further. The UCLA forecast goes on to say that “Learner sees no clear stimuli on the horizon in 2005, ruling out both tax cuts (which have already occurred) and monetary stimulus (which has also occurred through low interest rates). An increase in government spending is doubtful (unless it is wartime spending), leaving only exports as a possible ray of hope. Exports were a major factor in the length of the Reagan expansion, and the declining dollar vs. the Euro should stimulate this sector. Learner concludes with the assertion that a recession is in the future; he just doesn’t know when yet. He doesn’t see it in 2005, but believes it could happen in 2006.” California’s economy has shown growth over the past year; however the picture is different depending on what area you look at. “Instead of a tale of two cities, you’ve got a tale of three regions,” said Michael Bazdarich, research director at the Anderson Forecast at the University of California Los Angeles. “The Bay Area in the dumps, Los Angeles is coming back after a weak finish last year, and Southern California outside of Los Angeles is doing fine.” According to the UCLA forecast, personal income in California grew by 5.7% in 2004, compared to 3.1% in the previous year and taxable sales were 5.4% higher compared to 3.2% growth in 2003. Of course, some of the reason for the low numbers in 2003 was the effect of one of the worst regional downturns ever in the San Francisco Bay Area. On average, according to Anderson’s figures, California is doing about as well as the rest of the nation, with job growth averaging an annualized 1 percent since the beginning of the year. Some of the biggest concerns for California’s future economy, according to the UCLA forecasters, is the effect that the housing market could have. 7 Exhibit 1 The median price of a home in California increased from $225,000 in 2001 to $400,000 today. That is an increase in value of somewhere around $1.66 trillion, essentially giving Californians a 30%+ boost to their annual incomes. Also, approximately half of the new private sector jobs added in the past two years have been created by the residential housing sector. UCLA Forecast expects that the real estate market will begin to cool in 2005 and with it one of the primary drivers of the current economic expansion of the state. They believe “that, at best, the state economy can be expected to maintain slow growth over the next few years as the weak housing sector saps off strength created in other parts of the state’s recovering external economy. ” Locally, the San Diego economy seems to be holding its own. The region added 4,700 jobs in April 2005 for a growth of 1.9%, however; most of them were in the low-paying sectors such as hospitality,and leisure. Alan Gin, economist at the University of San Diego (USD), said he is increasingly concerned about the concentration of employment in construction and real estate- related jobs. Although he does not see a recession in San Diego’s future, if there was a decline in the construction industry, it could have a significant effect on the region’s job market. He also added that he is concerned about the concentration of jobs in the relatively low-paying occupations, such as restaurants and hotels. USD tracks the San Diego economy through its Index of Leading Economic Indicators. The USD index tracks six items to evaluate growth trends in the San Diego economy: unemployment filings, want ads, local stock prices, consumer confidence, building permits and the strength of the national economy. The index declined in April by .5%, which makes the fourth consecutive decline in the index. It was led by a sharp drop in consumer confidence. Four of the other components-building permits, initial claims for unemployment insurance, local stock prices, and the outlook for the national economy--were down by small to moderate amounts. Only one component, help wanted advertising, was positive, but only by a small amount. USD has indicated, “the breadth of the decline continues to be broad. For the third Index of Leading Economic Indicators San Diego County 2001-2005 straight month, five of the six components were negative. Although a downturn in the local economy is unlikely in 2005, the outlook is for a weakening to occur in the second half of the year. Job growth will remain positive, but the local unemployment rate is likely to rise by the end of the year.” Other factors contributing to the weakening outlook is the high price of gasoline and the uncertainties caused by the fiscal crisis in the City of San Diego. Carlsbad’s economy is tied closely to that of the San Diego region, although development patterns may differ. Carlsbad experienced strong growth in the past year in property and sales taxes as well as Transient Occupancy Taxes (TOT). Property taxes are expected to grow by over 10% reflecting the continuing escalation in housing prices as well as new development. Sales taxes should add an additional $1 million for FY 2004-05 due to good consumer demand but also new sites in the City such as The Forum, a new retail center in southern Carlsbad. Transient Occupancy Taxes, the City’s gauge of the tourism industry, are expected to end the year showing a 12% gain with a large part of that coming from the reopening of one of Carlsbad’s premiere resorts. Carlsbad’s residential real estate market has continued strong throughout the year. The City expects to issue 1,350 residential permits this year, slightly higher than the 1,276 in the previous 8 Exhibit 1 year. The impediment to higher development is mainly due to the lack of supply rather than a lack of demand. There are a number of new residential communities under construction or in the final phases of development that will add significantly to the residential housing stock in Carlsbad. Home sales are under way in 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 are under construction and will add approximately 1,700 single-family and 550 multi-family units. The Bressi Ranch area is also under construction with 523 single-family and 100 multi-family units to be developed. And finally, the Robertson Ranch area, which is expected to contain over 1,000 residential units, is finishing up its master plan. The completion of these master planned communities will signal an end to the large-scale residential developments in Carlsbad. Median SFD Home Prices I1 A $800,000 $600,000 $400,000 $200,000 $0 II 2000 2001 2002 2003 2004 With supply relatively low, housing prices have continued to escalate. The median price for single-family homes in Carlsbad was $725,000 for calendar year 2004, a 22% increase from the previous year. Total assessed values in the City stand at close to $16 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 3,300 more residential units and an additional 4.5 million square feet of commerciaMndustria1 development over the next five years. The City’s residential housing stock is about 88% built out, with approximately 5,700 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 900,000 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 destination resort for tourism. The City is host to a major family theme park: Legoland, and has two luxury resorts available for its visitors: the Four Seasons Resort at Aviara and the La Costa Resort & Spa. There are also a number of other quality hotels and motels in the City with the most recent addition being the Extended Stay America, which opened in fall 2002 bringing the total available hotel rooms in the City to about 3,500. For the future, there are several new tourist-serving projects in development. An 86-room hotel is under construction expecting to open in 2005-06. The La Costa Resort recently received approval to develop up to 197 commercial resort villas on their site. These are expected to be phased in over the next several years adding over $1.5 million in TOT when completed. In addition, a new project next to Legoland has been approved for 350 hotel rooms and 350 Exhibit 1 timeshare units. This project will also be phased in over time and is expected to generate an additional $2 million per year in TOT. It is the Council’s goal to ensure that the City remains in good financial health, and there are a number of steps the City has taken to attain that goal. One of these is the Growth Management Plan. This plan was adopted by the citizens to ensure that all necessary public facilities were constructed along with development. It also ensures that a financing plan is in place to pay for the facilities prior to the development of the property. In addition to the Growth Management Plan, the City also prepares a long-term financial model for both the capital and operating needs of the City. With a growing city such as Carlsbad, it is imperative that we plan for the impacts of serving new development and operating new public facilities, as well as planning for the capital needed to build them. Thus, the City prepares a ten- year operating forecast for the General fund, and a 20+ year Capital Improvement Program. As part of the Capital Improvement Program, the City annually calculates the amounts needed to pay for the various projects and calculates the anticipated operating budget impacts. In this way, we can anticipate the effects of development from both a capital and an operating perspective. One of the newer initiatives the City has undertaken to ensure its financial health is the development of an Infrastructure Replacement fund. With this fund, the City has begun to set aside money on an annual basis for major maintenance and replacement of its infrastructure. Much of the City’s infrastructure is relatively new; thus, the City has not felt the full impact of maintenance. By setting aside funds now, the citizens of Carlsbad can be assured that the proper maintenance and replacement, when needed, will be performed on streets, parks, and many facilities for which the City is responsible. Carlsbad’s current economic Ill $120 $100 $80 $60 $40 $20 II I $0 position is an enviable one. A relatively healthy local economy over the past ten years provided additional revenue-generating sites that allow the City to continue to add new facilities and services for the citizens. The City hosts three regional shopping areas within its boundaries: a large regional mall, an outlet center and, the latest development, a high-end retail center in the 96 97 98 99 00 01 02 03 04 0% 06e southern part of town called The Forum. Together, these sites contribute approximately $4 million annually to the City’s sales taxes. The City’s Auto Mall generates another $6.5 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. Exhibit 1 According to the Legislative Analyst‘s Office (LAO), the State is facing significant deficits in future years despite the stronger revenues seen in the past For fiscal year 2005-06, the City’s revenue projections reflect continued growth in sales taxes of about 5.5% plus additional amounts due to new retail sites opening in the next year. The growth in housing prices is expected to moderate as interest rates rise with assessed values increasing 11.6% according to the County Assessor. New building permits are predicted to slow slightly as new housing developments come on line but absorption rates drag out. And finally, tourism is expected to continue strong, with TOT receipts surpassing 2001’s level by the end of 2005 and growing in the future with the addition of more available rooms. More information on all of the City’s revenues and programs can be found in the later sections of this document. , In addition to the risk of a housing bubble burst or a slow down in the economy, the state of California’s fiscal problems also cast a shadow on the City’s economic future. The state of California has been in a severe fiscal crisis for a number of years. Through a variety of loans, one-time revenues, interfund borrowings and raids on city, county and special district funds, it has been able to manage its cash flows and stay solvent. However, more drastic measures will be needed for the State to finally LAO Forecast for State of California Rpure 11 Structural Shortfall Remainse Revenues and ExpendiQlm #?her May Revision (In Billions) In fiscal year 2004, the State took approximately $1.5 million in Vehicle License Fees from the City’s General fund with the promise to pay it back in the future. Then, November 2003, a ballot measure was passed authorizing what is known as the “Triple Flip”. This is a complicated method of securing payment for the Deficit Reduction Bonds, issued by the State to balance their budget. It is essentially a 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. As a result of the continued attacks on cities revenues, a coalition of cities, counties and special districts got a measure placed on the November 2004 ballot to put some protections in place for local governments. The measure included the following provisions: Permanently reducing the vehicle license fee (VLF) rate to its current .65% and provide property taxes to cities and counties to offset the loss on a dollar for dollar basis. Guarantees repayment in fiscal year ’07 of the of VLF amounts taken by the State. Guarantees that the “Triple Flip” will be reversed when the bonds are repaid. Prevents the Legislature from reducing the combined property tax shares of cities, special districts, and the county, except to borrow the funds on a temporary basis to address a “severe state fiscal hardship”. Provides for mandate relief if the State does not pay the mandated costs. Exhibit 1 All of this in return for a contribution to the State totaling $1.3 billion in both the ‘05 and ‘06 fiscal years from cities, counties and special districts. The measure passed and as a result, the city of Carlsbad will give the State $1.8 million from the General fund and $220,000 from its Redevelopment Agency in fiscal years 2004-05 and 2005-06. However, in exchange for this 2-year “contribution” to the State, the cities have gained protection from further raids on their major tax revenues by the State. 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 ten years due to the development of the majority of its commercial sites. The future will bring a few more commercial sites but at a slower pace, while residential development will continue for a number of years. There are also quite a few City facilities - mainly parks and civic facilities - 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 - have created upward pressure on expenditures, especially over the past several years. These factors have been incorporated into the General fund forecast shown below and projected over the next ten years. While no forecast is ever totally accurate, it does represent a likely scenario given the assumptions on which it is built. This forecast assumes that revenue growth will continue at a moderate pace in 2006 and into the future. 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 for the next several years. The forecast assumes 15% General Fund increases in health care Revenues over Expenditures costs in the near future, slowing to 5% in the future. It also assumes Personnel In nillions growth (new pos/tions) to remain rather flat at no more 140 than 2% per year. Cost of 120 living increases between 3 100 and 5% have been added to personnel costs. Pension plan costs are anticipated to remain essentially at current levels. And finallv. it includes 180 160 80 60 40 ,I estimated operating costs for all capital projects in the timeframes shown in the Capital Improvement Program (CIP). One of the biggest assumptions in the forecast is that services remain the same. No new services have been anticipated although, growth in current services to match the growing population has been incorporated. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 J Exhibit 1 The results show that the General fund is balanced into the future with a slight surplus in each year of less than 5%. This achieves the goal set out by Council to maintain a balanced budget. Millons Forecast Comparison $15 $10 $5 $0 -$5 -$lo -115 I* I \ \ I Fa I '04 '05 '06 '07 'OS '09 '10 '11 '12 '13 '14 II Net Revenues over (under) Expenditures The situation was different just a couple of years ago when the forecast projected that the City was headed for deficits unless corrective measures were taken. For the past two years, Council and staff have worked to bring the forecast back into balance. Through a combination of enhancing revenue sources and finding more efficient methods of providing services (and with the help of a strong local economy), the City was able to turn the forecast around from heading into deficits to a healthy balance. One of the more significant revenue enhancements that occurred over the past year was the passage of the reauthorization of Transnet revenues. Transnet is a % cent additional sales tax collected countywide and used to improve the transportation systems. The current authorization for the sales tax was to end in 2008. SANDAG, the San Diego Association of Governments, placed a measure on the November 2004 ballot to reauthorize the sales tax for another 40 years. The measure passed providing the City $1.5 million in annual taxes to be spent on street repair, maintenance and construction. The ability to understand the future impacts of both changes in revenue sources as well as program needs is crucial to ensure that the City has the funds available to make its future plans come true. The General fund forecast is a tool available to the City to achieve the goal of managing its fiscal resources effectively and monitoring the achievement of sustainable economic health for the City of Carlsbad. Exhibit 1 2005-06 PRELlMlNARY OPERATING BUDGET OVERVIEW The preliminary Operating budget for fiscal year 2005-06 totals $1 56.5 million, with revenues for the year estimated at $162.4 million. General fund revenues are estimated at $104.8 million and budgeted expenditures are $96.5 million. REVENUE The following table shows the total operating revenues the City anticipates receiving for 2004- 05, as well as those estimated for 2005-06. SPECIAL REVENUE ENTERPRISE INTERNAL SERVICE REDEVELOPMENT BY FUND TYPE (in Millions) PROJECTED I ESTIMATED I 0% Revenue estimates for the Operating budget indicate that the City will receive a total of $1 62.4 million, a 2.7% increase over the prior year. Increases in General fund revenues, mainly property and sales taxes, offset the declines in the other funds. The majority of the decline of $3.5 million in the Special Revenue funds is due to unscheduled revenue received in 2004-05 in the Housing Trust fund for interest and shared appreciation on loan repayments. 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. RANSIENT OCC. TAX RANCHISE TAXES USINESS LICENSE TAX DEVELOPMENT REVENUES (In Million PROJECTED 2004-05 § 28.1 26.6 9.8 5.7 3.0 6.8 19.5 c 99.5 ESTIMATED 2005-06 6 37.3 28.7 10.3 5.3 3.2 5.7 14.3 $ % CHANGE CHANGE !§ 9.2 33% 2.1 8% 0.5 5% (0.4) (7%) .2 7% (1.1) (16%) (5.2) (27%) 6 104.8 I$ 5.3 I 5%H This year it is expected that property taxes will grow to over $39 million, a 13% increase over the past year. However, the City will only receive $37.3 million of that due to the reductions adopted in the 2004-05 State of California’s budget. The State’s budget required cites, counties and special districts to all “contribute” a portion their property taxes to the State over a two year Exhibit 1 period to help fund the State’s financial shortfalls. To Carlsbad, that meant a $1.8 million reduction in property taxes for both the 2004-05 and 2005-06 fiscal years - a total loss of $3.6 million. In addition, the 2004-05 State budget reallocated Property Taxes for Vehicle License Fees (VLF). Thus, instead of receiving $5 million in VLF, the Ci‘ now gets additional property - - Property and Sales Tax Growth I” rnllllO“’* $40 $35 1 + propert- f / $30 - +Sales Taxes / $25 ~ taxes in an equal amount. These amounts will grow at the same rate as the City’s assessed values. Thus, of the $9.2 million increase in property taxes, $3.5 million or 11.6% is due to growth in the assessed value and $5.7 million is the anticipated VLF-in-lieu for 2005-06. 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 2005-06 are based on values as of January 1, 2005. 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 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 $28.7 million for 2005-06, an increase of 8% over the 2004-05 projections. These projections assume a base increase of 5.6% plus additional amounts for Sales Taxes by Category Construction M~~ II new retail sites locating in the City. The increase would have been closer to 6.5% if not for the implementation of the “Triple Flip” required under the State’s 2004-05 budget. The “Triple Flip” is essentially a temporary swap of a % cent of the cities’ sales taxes in return for property tax. It was done in order to give the State a revenue source against which they could issue deficit reduction bonds. The City’s sales tax estimates continue to show this amount as sales tax since the amount is reflective of the amount of sales taxes the City would have received. It should have no effect on the ultimate amount of tax revenues but it did result in a delay in the I1 timing of the receipt of the taxes; most noticeably in the first year of the swap (fiscal year 2004- 05). Because of this delay between years, sales tax receipts for FY05 are lower by about $500,000 causing the increase this year to look higher than the economic reality. Exhibit 1 Transient Occupancy Taxes $0, I 01 02 03 04 05e 06e Fiscal Year One of the most significant new sites in Carlsbad is a retail center in the southernmost part of the City called The Forum. 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. declined after the September 2001 terrorism attacks and the mild that followed. recession Compounding the decline for Carlsbad was the renovation occurring at one of Carlsbad’s premier resorts, the La Costa Resort and Spa. The resort underwent extensive remodeling and rebuilding, which offset much of the growth experienced by the other hotels in the City. The remodeling was rebounded causing TOT revenues to rise. complete in 2004-05 and tourism has 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 71 % of the City’s sales tax base. of the public land over which they Sales tax estimates also include approximately $800,000 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. 1 SDGE Franchise Taxes 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 TV 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 5% to 8% 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). 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 A I i II $6 $5 $4 $3 $2 $1 $0 01 02 03 04 05 06e I II for franchise taxes due to deregulation of 111 the power industry. The majority of the 111 16 Exhibit 1 0 “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 calendar year). Another price spike occurred in 2003 increasing the FY04 revenues and the high prices continued into FY05. The FY06 forecast shows a decline of 15% from the previous year. Development-related revenues declined slowly from the high of 1998, but have picked up in Development-related revenues include planning, engineering and building permits, and fees paid by developers to cover the 111 cost of reviewing and Development Revenues and Permits Issued Year over Year Percentage Change 2,500 2,000 1500 ,s 1000 a 500 monitoring develop men t 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. I--cRevenues -Residential Wrnits Issued 1 , ‘11 the last few years as several large master-planned projects For fiscal year 2005-06, permits issued are expected to decline slightly were developed. bringing down the revenue as well. A 15% decline is projected for next year. Business license taxes are closely tied to the health of the economy and are projected to grow by approximately 5% in the next year to $3.2 million. There are currently about 8,000 licensed businesses in Carlsbad, with over 2,000 of them based out of the home. All other revenues include vehicle license fees, transfer taxes, interest earnings, ambulance fees, recreation fees, and other charges and fees. The estimate for fiscal year 2005-06 totals $14.3 million, a $5 million decrease from fiscal year 2004-05 caused mainly by the changes in vehicle license fees. Vehicle License Fees (VLF) are collected by the Department of Motor Vehicles when cars or other vehicles are registered. They are calculated on the estimated value of the vehicle and are distributed to cities and counties mainly based on population. 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, faced with large deficits, the State stopped backfilling the cities and counties. This resulted in a loss of VLF revenue to Carlsbad of about $1.5 million. The State has promised to pay back the loss in FY 2006-07. In the FY05 budget, the State also ended the need to backfill by exchanging approximately two- thirds of this revenue source for more property taxes (as noted under the property tax section). Thus, the City is only expecting to receive about $500,000 annually in VLF from fiscal year 2004-05 forward. Transfer taxes are those taxes paid to the county upon the transfer of interests in real estate. The tax is 55 cents per $500 of property value and is split equally between the county and the city. Carlsbad expects to receive $1.2 million in transfer taxes for FY05 and about the same in I7 Exhibit 1 FY06. Income from investments and property includes interest earnings as well as rental income from City-owned land and facilities. It is projected to decline slightly due to a combination of higher rates but lower balances. The construction of a Municipal Golf Course will require a loan of approximately $21 million from the General fund. There is also a need to loan the Median Landscaping fund approximately $225,000. These are discussed in more detail later in the report. 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%, or $5 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 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% gain projected for fiscal year 2005-06 is respectable given that the CPI is only expected to grow by 2.4% in 2006. This growth is closer to what may be expected in the future. Other Funds Revenues from Special Revenue funds are expected to total $4 million, a $3 million decrease from 2004-05. The types of programs supported within Special Revenue funds are those funded by specific revenue streams such as: . Grants (Section 8 Housing Assistance, Community Development Block Grants); 9 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 Section 8 Program, the Housing Trust, and in the Maintenance Districts. The Section 8 Housing program fund is funded by grants from the US Department of Housing and Urban Development (HUD). Carlsbad Special Revenue CDBG AllOthers Maintenance Districts Housing Trust expects to receive $400,000 less this year as a result of a change HUD made in its methodology and cuts to the program at the Federal level. 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 2005, the City expects to receive about $1.8 million in repayments and $1.3 million in fees. For fiscal year 2006, only $135,000 has been estimated for fees and nothing for repayments, as both of these revenue sources are uncertain. Most of the fund‘s revenue decrease is due to this difference. The last area with significant changes is in the Lighting and Landscaping District. This District includes the Trees, Medians and Street Lighting. There is a $1 10,000 decline in revenues in the Tree Maintenance fund which is mostly due to an accounting change rather than any real decrease in funding. In previous years, the fund received payment from the General fund for work done on trees in the City’s parks. This year, the expenses are being budgeted in the General fund thus eliminating the need for the payment. Other declines in the District revenues Exhibit 1 The increase requested for the storm .water program is 14 cents per household for a total monthly cost of are due to budgeting only for the current year assessments whereas the prior year revenues include the collection of delinquent assessments. Base Rate $13.26 $14.07 $0.81 6.1% Storm Water 1.95 2.09 0.14 7.2% Enterprise fund revenues for 2005-06 are projected at $33.4 million, up by $600,000. 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. The Water Enterprise fund shows an increase of 2% over the previous year. This anticipates another wet year in San Diego. No change in the rate structure is being recommended; although it is likely that one will be needed in the next year or two. The City has not raised the water rates since 1999. The Recycled water revenues are increasing as a result of the opening of the new Carlsbad Recycling Facility. The new facility has the ability to generate 4 million gallons per day of recycled water and will begin operations shortly after the beginning of the new fiscal year. Sewer Rate Comparison Cityof DelMar Olivenhain Municipal Water District B uena Sanitation District' City of Solana Beach City of Vista' City of Encinitas' Cityof Oceanside Vallecitos Water District. Leucadia Wastewater District' Cityof Carlsbad' *Member of Encina Wastewater Authority $0 $D $20 $ 30 S 40 f 50 . ..... . ... the region. A rate increase is being recommended in the Sanitation Enterprise of 4%. This will raise the base residential rate from $13 to $13.50 per month. The last rate increase occurred in 1999. The City has been able to hold down the rate increases due to growth in the City (more residences and businesses to spread the fixed charges over) as well management. Even with the rate increase, Carlsbad's sewer rates are still among the lowest in as through cost A rate increase is also requested in the Solid Waste fund. The Solid Waste fund contains two programs: solid waste management and storm water management. A 6% increase in the residential rate and a 7% increase in the commercial rates are being requested for the solid waste program. The increase will flow through to the solid waste contractor, Coast Waste Management. No increase has been I given to the contractor since 1997. YO Current Proposed Increase Increase AB939 0.27 0.28 0.02 6.1% Franchise Fee 0.99 1.06 0.06 6.1% $2.09. With these increases the effect on most residential bills will be a total increase of 6% as shown in the table. The rate increases are recommended in order to keep up with the inflationary pressures on the costs of providing the services. Exhibit 1 One other change in the solid waste revenues is the reallocation of the non-jurisdictional revenues from the solid waste fund to the pavement management program in the Capital Improvement Program. The non-jurisdictional fees are fees paid by trash haulers for the use of the Palomar Transfer Station, which the City leases from the County. The fees were initially deposited to the Solid Waste fund to enable that fund to purchase the Transfer station if and when the County was ready to sell it. Staff believes that there are now sufficient funds accumulated so the future revenues can be used to pay for the wear and tear of the City’s infrastructure as a result of hosting the Transfer Station in Carlsbad. Internal Service funds show estimated revenues of $12.3 million for 2005-06, an increase of 3.6%, over 2004-05 projections. Internal Service funds provide services within the City itself and include programs such as the self-insurance funds for Workers’ Compensation and Liability, 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. The more significant rate increases occurred in the Workers Compensation fund and Vehicle Maintenance fund. In both of these funds, costs have been escalating greater than inflation over the past year or two. For Worker’s Compensation, it has been the cost of the claims. In the Vehicle Maintenance fund, it is mainly due to the cost of fuel. In both of these cases, the rates were increased in order to cover the costs of the programs. More discussion on the costs can be found in the Expenditures section of this report. Redevelopment revenues are expected to total $2.5 million in the upcoming year; a 3% decrease over the projections for the previous year. Most of the decrease is the result of reduced assessed values in the South Carlsbad Coastal Redevelopment Area (SCCRA). The SCCRA was formed in 2000 and is still in the master planning stage. No significant construction has begun. In addition, the SCCRA’s highest valued property, the Encina power plant has been declining in value. The Encina power plant is an older facility and due to obsolesces, the State Assessor has been devaluing the plant each year. Based on the latest estimates from the Assessor, the devaluation of the power plant will bring the base value for the SCCRA to below the original value when the redevelopment area was formed. This eliminates all tax increment revenue for the redevelopment area. No tax increment is expected to be generated until additional investments are made in the power plant or significant redevelopment construction begins. Tax increment in the City’s other Redevelopment area (the Village) is expected to increase by 5% to $2.8 million in fiscal year 2006. 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 2005-06 totals $1 56.5 million, which represents an increase of $8.9 million, or 6.0%, from the adopted 2004-05 budget. The changes in each of the City’s programs will be discussed fully below. Exhibit 1 Budgetary Policies The theme behind this year’s budget policies was “effectively managing today’s resources for tomorrow” - to manage our current resources so that we are able to deliver the same quality and level of our services while maintaining a balanced budget for now and into the future. While the forecast shows expectations for a balanced budget in the future, the City also has a large capital program underway which will add additional pressure to the budget. With the inherent risks of a downturn in the economy coupled with the fiscal problems still being worked on at the State level, it is important to keep an eye focused on the future to ensure the City stays in good financial health. To achieve that end, the following policies were set: 0 0 Maintain current service levels. No new programs unless already in progress or anticipated in the capital improvement program. Identify new revenue generation opportunities Carefully review open positions prior to filling New positions will be limited to only those necessary to maintain service levels New positions will also be considered if overall cost savings can be achieved 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. The City uses an “Expenditure Control Budget” (ECB) process in budgeting. In the ECB approach, each department is 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. Every year the block is increased by an index for growth and inflation. 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. In the 2004-05 Budget, the block portion of the “Expenditure Control Budget” (ECB) was reviewed and brought in line with changes that had occurred in the programs and with efficiencies that were identified during the review. Every program was scrutinized to determine the true cost of providing the services and budgeted at the level deemed necessary to continue to provide the services. In the 2005-06 Budget, we have returned to the ECB process using the fiscal year 2004-05 Budget as the base. The 2005-06 Budget reflects the following organizational and structural changes, which will continue to contribute to the overall effectiveness of the organization: 0 0 The Disaster Preparedness program was moved from the Fire Department to the Police Department. With the decline in activity in the Sister Cities Donation Fund and Arts General Contributions and Gallery Donations Funds it has been decided to have those funds transferred to the Arts Sister City General Fund and the Arts General Funds. This will in no way impact the ability of citizens to donate to these valuable programs, but will improve our internal effectiveness. Budgeted Expenditures Through the application of these guidelines and policies, the 2005-06 Operating Budget of $1 56.5 million was developed. The 2005-06 Operating budget proposes 13 new full-time employees: 6 of these are due to the opening of new facilities, 3 are to enhance public safety, and 4 are related to a conversion of part-time personnel into full time personnel to improve effectiveness in the Public Works department. The net decrease in hourly staff totaled approximately .46 full-time equivalents (FTE). These changes result in a City workforce of 659 Exhibit 1 full and three-quarter-time employees and 147.47 hourly FTE. The staffing changes in each of the City’s programs will be discussed fully below. Facilities The City has a large number of major capital projects scheduled to be built over the next five - years. As the City completes these projects, the costs of maintaining and operating the facilities are added to the Operating budget. Three new parks are planned to open in 2005-06: Aviara, Hidden Canyon and Pine. The budget includes 4 new full-time Parks personnel and 2.1 new hourly FTE Recreation personnel for a total of 6.1 new positions needed to staff the new parks. The 4 new full-time Parks employees will be maintenance workers required for the up keep of the new parks and the 2.1 new hourly FTE Recreation employees are needed to staff the activities and programs that will be offered at the new parks. A new recycled water facility is also scheduled to open in 2005-06. The facility is located at the site of the Encina Wastewater Facility and will be run mainly through a contract with the Encina Wastewater Authority (EWA) who operates the wastewater facility. This will provide greater efficiency than if the City staffed it with its own personnel. Carlsbad will need to add a water systems operator to read and interpret water devices and calculate and then adjust chemical dosages and a cross-connection control technician to test all the new connections to the recycled system. These connections need to be tested on a regular basis to ensure that the potable water system is not being crossed over into the recycled system. Public Safety Public safety has always been, and remains, a top Council priority. After reviewing the current staffing requirements and the population growth in the City, it was evident that there was a need to add new Police personnel to maintain the current service levels in the community. The request is for two additional Police Corporals to enhance the department’s ability to provide community-oriented policing. This program puts more officers in the community so that they can identify potential problems before they happen and develop long-term solutions when needed. The Police department is also requesting a Crime Analyst to provide data and statistics allowing for increased efficiencies and smarter policing. Lastly, the Police department is requesting to add 3.42 new hourly FTE school crossing guards. School crossing guards had previously been provided through a contract with a temporary agency. The agency can no longer provide this service and the Police department believe they can save money and provide better quality control by using part-time personnel rather than a temporary agency. The same level of service will be maintained. Top Quality Service One of Council’s goals is top-quality service, which means serving our customers well. The City is continuing its efforts to provide the best service to our citizens and customers. There are numerous goals proposed for the 2005-06 fiscal year that investigate potential enhancements to the services we provide. Exhibit 1 One new exciting program being researched for this year is the Library’s marketplace service approach. The marketplace service approach provides a cozy bookstore-style marketing of collections, consolidation of services and amenities like food and specialty coffee. Another service related goal for 2005-06 is the Business Service Review (BPR) to be conducted in the Community Development Division. The BPR will analyze the planning, building, land use engineering and fire prevention functions to identify potential process improvements, recommend specific actions to correct problem areas and improve operations. The goal is to make the Community Development Division more efficient and user-friendly to the citizens. Finally, the City’s new Communications Department continues to define its mission and has several goals and programs designed to better disseminate information and teach citizens about the various programs and activities offered in Carlsbad. Examples include a video magazine, citywide calendars, Community Service Guides, the City Stuff Program and the Citizen’s Connection and Partnership Survey. City Stuff teaches Carlsbad’s children about the various city services and functions of city government. The Citizen’s Connection and Partnership Survey will be a mechanism, through community displays and kiosks in city facilities, to identify and evaluate opportunities to create a dialogue between the City and the citizens. The dialogue will provide the necessary feedback to better manage programs and provide the appropriate services for the citizens. Increased Efficiencies and Cost Savings With the emphasis this year on effectively managing resources, several goals will be targeting increasing efficiencies and cost savings. To improve the efficiency of our existing Public Works department 7.59 hourly FTE positions will be converted into 4 new full-time Public Works employees. The full-time employees will experience less turn-over as non-seasonal employees, have the needed expertise and can receive the required training to provide a more consistent level of year-round coverage in maintaining existing parks and facilities. Another goal in the coming year is to review the solid waste needs of the City and identify the types of services and rate structure that best meets the City’s residential, commercial and multi-family requirements. One exciting and potentially substantial cost savings could come from creating a Business Improvement District (BID). A BID is a special district in which the participant pays assessments for certain services to be provided to them. In this case, the idea is to include all hotel properties in the BID and collect a certain amount per room rented. The funds would then be used to promote tourism in Carlsbad. In 2004/05, following Council’s direction, money was loaned to the Carlsbad Convention and Visitor’s Bureau to help fund the creation of a BID. The money will be repaid when the BID is formed and collections begin. Once formed, the BID could reduce the amount of money the City contributes to community promotion, which cost the City over $500,000 in 2004/05. Lastly, as a cost savings, a hard look was taken at the numbers and types of vehicles being purchased as replacements for the City’s current fleet. Each vehicle was reviewed to determine the need for replacement at this time as well as whether the replacement could be a smaller, less costly, more fuel-efficient vehicle without hurting the effectiveness of the program. The results of this review was that of the 58 vehicles that met the replacement criteria outlined in Administrative Order Number 3, only 34 vehicles were selected for replacement. Of the 34 units selected for replacement, 4 vehicles were downsized. Connecting Community, Place, and Spirit 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 staft to begin a collective dialogue about the future. Exhibit 1 Based on the Council’s direction, there is a goal included in the 2005-06 Budget to begin the design of the hardscape (place) portion 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. While the heart of the City may always be the Village area, the Gateway area is developing into the nerve center containing the commercial and industrial core of the City. The 2005-06 Operating Budget contains $100,000 to continue work on the land use plan. The Capital Improvement Program contains funding for the land use plans for a City/Safety Training facility, a Public Works center and for a Civic Center Plaza. Besides designing the hardscape for the City, the community will be engaged through a goal to continuing the dialogue about what the citizen’s want and what they can do together to connect community, place and spirit in Carlsbad. Budnet by Fund Type This table below shows the changes in the operating budget for fiscal year 2005-06 compared to the adopted budget for fiscal year 2004-05. GENERAL FUND SPECIAL REVENUE ENTERPRISE INTERNAL SERVICE 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. General Fund Total budget for the General fund is $96.5 million, which is 6.7% more than the previous budget of $90.5 million. As can be seen in the graph above, the increase is mainly due to the increase in personnel costs. Personnel costs make up approximately 66% of the General fund budget so any changes in these costs can have a significant effect on the total budget. Personnel costs are projected to increase by 9.1 % in 2005-06. Due to labor contracts with our employee groups, much of the cost was previously determined. Exhibit 1 This next table shows the breakdown of personnel costs for the General fund. Salaries include full and part-time staff costs and account for $2.1 million of the increase in the General fund. Approximately $640,000 of the additional salary costs are for the new positions in 2005/06. Benefits make up the remainder of the personnel costs with the largest increase retirement costs. the Employees WORKERS COMP Retirement System (PERS). PERS rates have increased due to the implementation of enhanced benefits as well as the effect of investment losses on the plan. These rates are expected to level off next year provided PERS investments generate a reasonable return. The City has made all required payments under the terms of its retirement plan. M & 0 stands for Maintenance and Operations. This budget contains the funds for all program expenses other than personnel or capital outlay. The City was able to hold down increases in these accounts this year by finding more efficient ways of doing business. Capital Outlay includes budgeted equipment purchases over $1,000. Capital outlay over $10,000 is further detailed in the Appendix. These amounts vary from year to year depending on the program needs. Transfers are amounts anticipated to be transferred from the General fund to another fund at the City. The transfers included in this year’s budget are to the following funds: 0 $4.2 million to the Infrastructure Replacement fund - for major maintenance and It is based on total revenues and increased by replacement of City infrastructure. $420,000 for fiscal year 2005-06. $800,000 to the Hosp Grove debt service fund - for debt service on bonds issued to purchase Hosp Grove. Hosp Grove was originally a grove of Eucalyptus trees. It has since been developed into a nature park containing trails and a tot lot. $600,000 transfer to the General Capital Construction fund (in the CIP) to partially fund the Library Learning Center. The Center will be the location of the Adult Learning Center and Centro de Informacion. It is anticipated that the $600,000 will be repaid from a donation from the Library Foundation. Last year’s budget contained a transfer of $800,000 to the CIP to fund synthetic turf fields. Exhibit 1 CHANGE $ 0.4 Another way of looking at the General fund budget is by program. The chart below compares the recommended 2005-06 budget to the amounts adopted in the previous year. The significant changes are noted below. CHANGE 10.7% GENERAL FUND EXPENDITURES BY MAJOR SERVICE AREA IlFUND P 0 Ll CY IL E AD E RS H I P AD M IN ISTRATIVE SE RVlC ES PUBLIC SAFETY COMMUNITY DEVELOPMENT COMMUNITY SERVICES PUBLIC WORKS CONTINGENCY NON-DEPARTMENTAL TOTAL (In Mi BUDGET 2004-05 $ 3.7 6.0 33.1 6.3 14.8 16.9 7.4 2.3 $ 90.5 ions) BUDGET 2005-06 $ 4.1 6.4 35.5 6.6 15.8 18.8 7.0 2.3 $ 96.5 $ I % 0.4 2.4 0.3 1 .o 1.9 (0.4 7.7% 7.2% 3.7% 6.9% 11.2% -4.6% I 0.0% $ 6.0 I 6.7% The Policy/Leadership Group includes all elected officials and the City Manager’s Office. The 10.7% change is mainly due to the increased costs and offerings of the Communications Department discussed earlier. There were minimal changes in the total budget for Administrative Services. The increase is due to higher PERS costs and tuition reimbursement costs for the City and reflected in the Human Resources Department. The 7.2% growth in Public Safety reflects the new positions in the Police Department as well as the general increases in personnel costs. In the Community Development area, the 3.7% increase is due mainly to personnel cost and a Business Process Review (BPR) discussed earlier. Community Services includes Recreation, Library and the Arts. The 6.9% increase reflects general personnel increases as well as the additional operating costs of adding three new parks. Public Works shows an overall increase of 11.2%. The largest increase is in the Parks Maintenance division, again reflecting the increased operating costs of adding three new parks. The Engineering Division continues to experience increases in costs in both plancheck and inspection. These costs have risen sharply over the past two years due to development activity and it is expected that once development slows down, these costs will also decline. Non-departmental expenses include the transfers previously discussed as well as administrative and other expenses not associated with any one department. The decrease is mainly due to the elimination of the amounts paid for community promotion. With the possibility of a Business Improvement District being formed this year, no amounts have been included in the preliminary budget for community promotion. This will be a topic for Council discussion during budget deliberations. Exhibit 1 The Council Contingency account is available to the City Council for unanticipated emergencies or unforeseen program needs during the year. It is budgeted at $2.3 million, or approximately 2.5% of the 2005-06 General fund budget, which is consistent with the $2.3 million budgeted in the prior year. During 2004-05, Council has authorized almost all of those funds be spent on emergency repairs on for damages caused by the 2005 storms. Changes In Other Funds Special Revenue funds, at $10.1 million, are essentially flat year over year with a slight increase in street lighting of approximately $1 50,000 to replace streetlights that have deteriorated along Carlsbad Boulevard. The COPS Grant has decreased by approximately $100,000 in 2005/06 reflecting the decreased funding from the State. This program now only supports one Police officer, a decline of one officer from previous years. The Housing Trust fund shows an increase of approximately $160,000, which is the result of allocating more staff time to the City’s housing programs. 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 $225,000 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. A loan was also necessary last year for $336,000. A feasibility study is being conducted by an assessment-engineering firm to review alternatives for funding lighting and landscaping. The assessments in this District cannot be increased without a vote of the property owners. Enterprise funds total $34.9 million, which is an increase of $3.3 million, or 10.5%. The most significant change is in the water and recycled water budgets. The increase is due to the new recycled water facility scheduled to open in 2005-06 and the two 2 new full-time Public Works personnel required to staff the recycled water distribution system and help implement the Phase II Recycled Water Program. The Solid Waste Management fund is requesting a 20% increase, or $320,000, in funding due to a one-time goal to negotiate a new solid waste contract, a loan repayment and some additional street sweeping costs. 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 water lines related to the recycled water plant are completed. No water rate increases are anticipated for fiscal year 2005-06 but may be needed in the following year. For the Sanitation fund, the forecast shows that a rate increase is necessary and thus, a 4% increase is being recommended as discussed earlier in the revenue section. The Internal Service fund budgets decreased in total by $373,000, or 2.8%. 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 $193,000 due to changes in State law and overall increases in health care costs which have caused workers 21 Exhibit 1 compensation claims to increase significantly over the past two years. The 2005-06 workers compensation costs are estimated to increase 10% over 2004-05 costs. With these increased costs, a transfer of approximately $300,000 is recommended from the City’s Health Insurance Fund, which has sufficient balances, to partially cover the increases in workers compensation costs. The Health Insurance budget shows a decline of $72,000 due to the change from the self-insured plan to the CalPERS Health Plan effective July 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. 0 The Vehicle Replacement fund budget varies from year to year depending on the need for replacements. It is budgeted at $638,000 less than the previous year. 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 $328,000. This is mainly due to decreases in one time capital spending. The Redevelopment Agency budgets have decreased for 2005-06 by a total of $21 0,000. This is mainly due to the one-time costs budgeted for the South Carlsbad Redevelopment Area Master Plan in 2004/05. SUMMARY The City of Carlsbad continues to fare 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. CITY OF CARLSBAD OPERATING FUNDS PROJECTED FUND BALANCES Exhibit 2 UNRESERVED PROJECTED BALANCE ESTIMATED ESTIMATED FUND BALANCE FUND JULY 1.2004 REVENUES EXPENDITURES TRANSFERS JUNE 30,2005 GENERAL FUND 1 59,352,012 TRANSFER TO MEDIAN MAINTENANCE TRANSFER TO GOLF COURSE FUND 99,542,000 69,747,969 11 9,967 (335,701) 69,266,010 (335,701) TOTAL 59.352.012 99.512.000 89.747.969 SPECIAL REVENUE POLICE ASSET FORFEITURE COPS GRANT POLICE GRANTS HOUSING SECTION 8 HOUSING TRUST FUND LIBRARY ENDOWMENT FUND LIBRARY GlFTSlBEQUESTS 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 TOTAL 416,731 71.968 89,167 441,141 9,221,479 19.422 104.075 607,839 (138,635) 1,022,998 849,918 13,413 24,351 81,525 181,600 45,157 1,012,967 218,463 5,881 109,886 14,601,346 ENTERPRISE I WATER OPERATIONS 13,118,191 RECYCLED WATER OPERATIONS 4,264,072 SANITATION OPERATIONS 5,821,365 SOLID WASTE MANAGEMENT 5,828,181 GOLF COURSE 1,794,887 TOTAL 30,826,696 INTERNAL SERVICE I WORKERS COMP SELF INSURANCE 2,930,498 RISK MANAGEMENT 1,520,680 HEALTH INSURANCE 825,489 VEHICLE MAINTENANCE 113,209 VEHICLE REPLACEMENT 7,429,866 INFORMATION TECHNOLOGY 3,589,948 TOTAL 16,409,690 IREDEVELOPMENT I 56,500 140.000 17.800 6,252,735 3,376,597 7.000 68,000 596,472 446,655 922,201 125.000 71,210 45,300 27,500 17,000 626,247 36,700 6,000 200 10,000 12,849.117 21217,546 2,220,795 6.800.000 2.525.1 15 60.000 32.823.456 2,126,512 1,255,000 850.000 1.722.000 1,712,300 4,250,400 11,916,212 88.795 21 1.968 86,200 6,409,623 3,577,185 10,350 62.869 872,394 715,000 1,124,073 183.995 41,062 42,652 13,000 6,000 671,404 49.600 15,141 0 6,000 14,189.531 20.525.157 2,206,050 7,960,745 1,635.483 95,693 32,423,326 2,066,026 1,047.883 861 ,000 1,860.ooO 626.000 5,400.000 12,082,909 335,701 (6,081) (113,886) 68,930,309 386,436 0 18,767 284,053 9,020,891 16,072 109,206 531,917 (71,279) 821,126 790,923 43,541 26,999 96,025 192.600 0 1,000,067 209,322 0 0 13,476,666 13,610,580 4.278,817 4,660,620 6,717,813 1,758,994 31,226,824 2.970.984 1.727.797 814,489 (24,791) 8,314,166 2,440,348 16,242,993 VILLAGE OPERATIONS I DEBT SVC 3,283,245 VILLAGE LOWIMOD INCOME HOUSING 2,157,134 SCCRA OPERATIONS / DEBT SVC 810.313 SCCRA LOWIMOD INCOME HOUSING 363,640 TOTAL 6,614,332 1,883,054 499,500 168,622 60,375 2,611,551 3,890.472 77,746 528.119 41,934 4,538,271 1,275,627 2,578,888 450.816 362,081 4,687,612 TOTAL OPERATING FUNDS $127,804,076 $159,742,336 $1 52,982,008 $0 $0 $134,564,404 CITY OF CARLSBAD OPERATING FUNDS PROJECTEDFUNDBALANCES PROJECTED PROJECTED BALANCE ESTIMATED PROPOSED FUND RESERVED BALANCE FUND JULY 1,2005 REVENUES BUDGET TRANSFERS BALANCES JUNE 30,2006 GENERAL FUND 1 68,930,309 104,785,000 96,521,399 77,193,910 TRANSFER TO MEDIAN MAINTENANCE (225,000) (225,000) TRANSFER TO GOLF COURSE FUND (21 ,000,000) (21,000,000) TOTAL 68,930,309 ISPECIAL REVENUE I 104,765,000 POLICE ASSET FORFEITURE COPS GRANT POLICE GRAMS HOUSING SECTION 6 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 ARTS GENERAL DONATIONS TOTAL 386,436 0 18,767 284.053 9,020,891 16,072 109,206 531.91 7 (71,279) 821,126 790,923 43,541 26,999 96,025 192,600 0 1 ,000,067 209,322 0 0 13,476,666 56,500 135,000 0 5,854,088 390.000 8,000 45,000 485,515 411,187 905,120 127,500 127,839 35,200 22,500 17,000 691.549 30.000 7,000 0 0 9,348,996 ENTERPRISE WATER OPERATIONS 13,810,580 RECYCLED WATER OPERATIONS 4,278,817 SANITATION OPERATIONS 4,660,620 SOLID WASTE MANAGEMENT 6,717,813 GOLF COURSE 1,758,994 TOTAL 31,226,824 INTERNAL SERVICE I WORKERS COMP SELF INSUR 2,970,984 RISK MANAGEMENT 1,727,797 HEALTH INSURANCE 814,489 VEHICLE MAINTENANCE (24,791) VEHICLE REPLACEMENT 8,314,166 INFORMATION TECHNOLOGY 2,440,348 TOTAL 16,242,993 21,577,099 2,427,329 7,279,135 2,095,657 20,000 33,399,220 2,295,240 1,335.000 875,000 1,919,190 1,772,080 4,150,600 12,347,110 96.521.399 89,200 135,000 0 5,960,915 417,983 12,000 0 653,298 564,612 1,177,027 104,600 63,571 37,446 22,500 170,000 637,549 30,000 28.000 0 225.000 55,968.910 353,736 0 18.767 157.226 8,992,908 12,072 154,206 364,134 296 549.219 813,823 107,809 24,753 96,025 39,600 54,000 67 188,322 0 0 10.123.701 11.926.963 22,244,166 2,644,807 7,703,159 2,126,647 125,000 34,845.799 2.416.866 1,766,631 941,500 2,069,676 1,170.000 4.682.332 13,067,005 13,143,493 4,061,339 4,236,596 6,684,823 1,653,994 29,780,245 300,000 (2,908,891) 240,467 (580.732) 695,434 (300,000) 447,989 (1 75,277) (5,000.000) 3,916,246 (1.190.000) 718,616 5,843,475 IREDEVELOPMENT I VILLAGE OPERATIONS / DEBT SVC 1.275,827 VILLAGE LOWIMOD INCOME HOUSING 2,578,888 SCCRA OPERATIONS / DEBT SVC 450,816 SCCRA LOW/MOD INCOME HOUSING 382,081 TOTAL 4,687,612 1,954,054 560.000 12,000 8,ooo 2,534,054 1.534.579 94,396 262.010 36,917 1,927,902 1,695,302 (2,651,516) 392,976 200,806 353,164 2,642,248 TOTAL OPERATING FUNDS $1 34,564,404 $1 62,414,382 $156,485,806 ($21,000,000) $106.1 61.841 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES Exhibit 3 DIFFERENCE AS % OF FY 04-05 2004-05 TO PROJECTED 2005-06 ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 ESTIMATED REVENUE 2005-06 1 GENERAL FUND TAXES PROPERTY TAX SALES TAX TRANSIENT TAX FRANCHISE TAX BUSINESS LICENSE TAX TRANSFER TAX TOTAL TAXES $26,960,253 25,571,192 8,813.426 5,027,425 2,871,715 1,587,200 70,831,211 $28,074,000 26,598,000 9,836,000 5,719,000 3,030,000 1 ,230,000 74,487,000 $37,272,000 28,653.000 10,279,000 5,326,000 3,200,000 1,231,000 85,961,000 32.8% 9,198,000 7.7% 2.055.000 4.5% 443,000 -6 9?A (393.000) 5.6% 170.000 0 1% 1 ,000 15.4% 11,474.000 INTERGOVERNMENTAL VEHICLE LICENSE FEES OTHER TOTAL INTERGOVERNMENTAL 4.1 24,672 1,593,189 5,717,861 5,449,000 1,318.000 6,767,000 503,000 1,144,000 1.647.000 -90.8% (4,946,000) -13.2% (174,000) -75.7% (5,120,000) LICENSES AND PERMITS BUILDING PERMITS OTHER LICENSES a PERMITS TOTAL LICENSES 8 PERMITS 1,282,126 1.046.398 2,328,524 1,800,000 1,200,000 3,000,000 1,650.000 1,100,000 2,750,000 -8.3% (150,000) -8.3% (100,000) -8.3% (250,000) CHARGES FOR SERVICES PLANNING FEES BUILDING DEPT. FEES ENGINEERING FEES AMBULANCE FEES RECREATION FEES OTHER CHARGES OR FEES TOTAL CHARGES FOR SERVICES -25 0% (200,000) -8.3% (101,oOo) -29.4% (530,000) 5.1% 69,000 2.9% 43,000 2.9% 32,000 -8.8% (687,000) 774,297 877.060 2,012,762 1,448,387 1,396,117 1,075,308 7,583,931 800.o0o 1,216.000 1,800,000 1.350.000 1.508.000 1,104,000 7,778,000 600,000 1.1 15,000 1.270.000 1,419.000 1,551,000 1,136,000 7.091 ,000 926,000 2.9% 26.000 FINES AND FORFEITURES 936.406 900,000 INCOME FROM INVESTMENTS AND PROPERTY' 1,476,749 3,010,000 2,960,000 -1.7% (50.0001 .. . 2.604.355 2.600.000 INTERDEPARTMENTAL CHARGES 2,700,000 3.9% 100,000 OTHERREVENUESOURCES 1.479.371 750,000 -25.0% (250,000) 104.785.000 5.3% 5.243.000 TOTAL GENERAL FUND 92,958,408 99,542,000 * Interest is calculated on an amotiied cost basis. CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 ESTIMATED REVENUE 2005-06 DIFFERENCE As % OF PI 04-05 2004-05 TO PROJECTED 2005-06 SPECIAL REVENUE FUNDS POLICE ASSET FORFEITURE ASSET FORFEITURES 155,974 INTEREST 951 TOTAL 156,925 50,000 6,500 56.500 0.0% 0 0.0% 0 0.0% 0 56,500 135,000 COPS GRANT STATE FUNDING (A83229) 134,514 140,000 0 140,000 -3.6% (5.000) 0.0% 0 -3.6% (5,000) INTEREST TOTAL 0 134,514 POLICE GRANTS STATE GRANT 34,408 INTEREST 0 TOTAL 34,408 17,800 n -100.0% (17.800) 0.0% 0 -100.0% (17,800) 0 0 5,852,088 2WJ 5,854,088 135,oM) 5,m 250,OoO 0 390.000 17,800 HOUSING - SECTION 8 FEDERAL GRANT 5,749,564 INTEREST 1 943 TOTAL HOUSING - SECTION 8 FEDERAL GRANT 5,749,564 INTEREST 1,943 TOTAL 5,751,507 6,250,735 2,000 6,252,735 -6.4% (398,647) 0.0% 0 -6.4% (398.647) 5,751,507 HOUSING TRUST FUND AFFORDABLE HOUSING FEES 488,590 FEDERAL GRANT 544,503 INTEREST 75,996 OTHER 4.495.273 1,290,ooo 7,464 280,000 1.799.133 -89.5% (1,155,000) -33.0% (2.464) -10.7% (30.000) -100.0% (1,799,133) -88.5% (2,986,597) TOTAL 5,604,362 3,376,597 LIBRARY ENDOWMENT FUND INTEREST 2,209 TOTAL 2,209 7.000 14.3% 1,000 14.3% 1,000 LIBRARY GIFTSBEQUESTS GIFTSBEQUESTS 64,597 43,000 45,000 -34.9% (23,000) 0.0% 0 -33.8% (23,000) INTEREST TOTAL n 64,597 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ESTIMATED REVENUE 2005-06 ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 AS % DIFFERENCE OF FY 04-05 2004-05 TO PROJECTED 200506 TREE MAINTENANCE TREE MAINTENANCE FEES INTERDEPARTMENTAL INTEREST OTHER TOTAL 466,672 106,000 23,800 -0.1% (257) -100.0% (106,000) -19.8% (4.700) 461,393 127.91 1 6,881 1,040 597,225 466,415 0 19,100 0 485,515 0 0.0% 0 -18.6% (1 10,957) 596,472 MEDIAN MAINTENANCE MEDIAN MAINTENANCE FEES OTHER INTEREST TOTAL 420,019 34,378 n 411,187 421,700 24.497 458 446,655 -2.5% (10,513) -100.0% (24.497) -100.0% (458) -7.9% (35,468) 0 0 411.187 454,397 STREET LIGHTING STREET LlGKTlNG FEES INTERDEPARTMENTAL OTHER INTEREST TOTAL 700.207 186.215 7,465 9 401 713,634 173,655 3,212 31,700 922,201 703,160 172,460 0 29,500 905,120 -1.5% (1 0,474) -0.7% (1,195) -100.0% (3,212) -6.9% (2,200) -1.9% (1 7,081 ) 903,288 BUENA VISTA CREEK CHNL MAINT BUENA VISTA FEES INTEREST TOTAL 23 6.699 100,OOO 25.000 100,MM 27,500 127,500 0.0% 0 10.0% 2,500 6,722 125,000 2.0% 2,500 LLD #2 FEES INTEREST TOTAL 0 536 70,885 325 127,639 200 80.1% 56,754 -38.5% (125) 79.5% 56,629 536 71 210 127,839 ARTS SPECIAL EVENTS DONATIONS INTEREST TOTAL 21,475 35,000 45,000 300 45.300 -22.2% (10.000) -33.3% (100) -22.3% (10.100) 200 35,200 21.475 RECREATION DONATIONS DONATIONS INTEREST 33,041 633 23,800 3,700 27.500 20,000 2,500 22.500 -16.0% (3.800) 0.0% 0 -18.2% (5.000) TOTAL 33,674 33 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 DIFFERENCE ESTIMATED AS % REVENUE OF PI 04-05 2004-05 TO 2005-06 PROJECTED 2005-06 SENIOR DONATIONS DONATIONS INTEREST OTHER TOTAL 10,000 6,000 1,000 17,000 637.549 34.000 20,Ooo 691,549 0 30,000 30,000 CDBG ENTITLEMENT FEDERAL GRANT INTEREST OTHER TOTAL 0.0% 0 0.0% 0 0.0% 0 0.0% 0 1 .a% 11,302 0.0% 34,000 0.0% 20,000 10.4% 65,302 -100.0% (4.700) -6.3% (2,000) -18.3% (2.000) COMMUNITY ACTIVITY GRANTS MlSC INCOME 7,000 7,000 0 0 0 0 0 0 INTEREST TOTAL 16.7% 1 ,ooo 16.7% 1 ,ooo -100.0% (7,000) -100.0% (3,000) -100.0% (10,000) -100.0% (200) 0.0% 0 -100.0% (200) CULTURAL ARTS PROGRAM INTEREST TOTAL ARTS GENERAUGALLERY DONATIONS (2) DONATIONS INTEREST TOTAL SISTER CITY DONATIONS 12) 19,732 10.000 1.581 6,000 1,473 1,000 22,786 17,000 615,638 626,247 61,930 0 75,773 0 753,341 626.247 0 4.700 8,133 32.000 8,133 36,700 1.729 6000 ..... . ~- 1,729 6,000 6,924 7,000 912 3.000 7,836 10,000 DONATIONS INTEREST TOTAL 500 200 50 0 550 200 TOTAL SPECIAL REVENUE FUNDS 14,560,214 12,849,117 I 9,348,998 I -27.2% (3.500.1 19) CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOURCE ACTUAL PROJECTED REVENUE REVENUE 2003-04 2004-05 ENTERPRISE FUNDS WATER OPERATIONS WATER SALES READY TO SERVE CHARGES PROPERTY TAXES NEW ACCOUNT CHARGES BACK-FLOW PROGRAM FEES PENALTY FEES INTEREST ENGINEERING OVERHEAD SERVICE CONNECTION FEES AGRICULTURAL CREDITS OTHER TOTAL 13,695,505 3,632,556 1,843.1 10 107,565 104,032 219,279 478,103 304,296 173,488 89,403 1,129,269 21,776,606 13,939,200 3.71 1,019 1,935,266 104,338 106,113 250,000 470.000 375.000 168,283 85.827 72.500 21.217.546 RECYCLED WATER WATER SALES READY-TO-SERVE CHARGE RECYCLED WATER CREDITS INTEREST TOTAL 1,121,164 118,134 385,298 408,966 2.033.562 1,200,000 100,000 477,160 443.61 5 2.220.795 SANITATION OPERATIONS SERVICE CHARGES MlSC SEWER ENGINEERING OVERHEAD PENALTY FEES INTEREST OTHER TOTAL 6,096,801 48,966 188,133 56,933 235,555 63,389 6.689.777 6.334.000 21 ,000 150,000 63.000 202,000 30,000 6.800.000 SOLID WASTE MANAGEMENT INTEREST RECYCLING FEES (AB939) PENALTY FEES NON-JURISDICTIONAL FEES STATE GRANT TRASH SURCHARGE OTHER TOTAL GOLF COURSE OTHER INTEREST TOTAL 162,956 283.765 39.888 639,775 27,509 0 165.000 275,000 40,000 620,000 25,051 1,400,064 0 1,153,893 0 16,326 2,525,115 15,000 45,000 60,000 ESTIMATED DIFFERENCE REVENUE OF FY 04-05 2004-05 TO 14,031,199 3.791.177 2,032,029 101,208 108,235 255,000 552,423 386.250 163,235 82.394 73,949 21,577,099 0.7% 2.2% 5.0% -3.0% 2.0% 2.WA 17.5% 3.0% -3.0% 4.0% 2 .O% 1.7% 91,999 80,158 96,763 (3,130) 2,122 5.000 82,423 11,250 (5,048) (3,433) 1,449 359,553 1,536,762 28.1% 336,762 128,063 28.1% 28.063 696,300 45.9% 219.120 66,204 -85.1% (377,411) 9.3% 206,534 6,843,212 21,785 154,500 65,355 194,283 0 7.279.135 218,057 286,000 41,600 0 0 1,550,000 0 8.0% 50921 2 3.7% 785 3.0% 4,500 3.7% 2,355 -3.6% (7,717) -100.0% (30,000) 7.1% 479,135 32.2% 53,057 4.OoA 11,000 4.0% 1,600 -100.0% (620,000) -100.0% (25,051) 10.7% 149,936 0.0% 0 2,095,657 -17.0% (429,458) -100.0% (15,000) -55.6% (25.000) 20,000 (1) (40.000) TOTAL ENTERPRISE FUNDS 31,670,164 32,823,456 33,399,220 I 1.8% 575.764 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES TOTAL INTERNAL SERVICE FUNDS 15,838,308 11,916,212 REVENUE SOURC 12,347,110 ACTUAL PROJECTED REVENUE REVENUE 2003-04 2004-05 INTERNAL SERVICE FUNDS WORKERS COMP SELF-INSURANCE INTEREST INTERDEPARTMENTAL OTHER (OP TRANS IN) TOTAL LIABILITY SELF-INSURANCE INTEREST INTERDEPARTMENTAL OTHER TOTAL HEALTH INSURANCE INTEREST INTERDEPARTMENTAUREIMB. TOTAL RECORDS MANAGEMENT (1) INTEREST INTERDEPARTMENTAL OTHER TOTAL VEHICLE MAINTENANCE INTERDEPARTMENTAL OTHER TOTAL VEHICLE REPLACEMENT INTERDEPARTMENTAL INTEREST OTHER TOTAL INFORMATION TECHNOLOGY INTEREST INTERDEPARTMENTAL OPERATING TRANSFER IN TOTAL 1 13,725 95,ooo 3,250,216 1,999,630 53.368 31 .E82 3,317,309 2,126,512 5,673 40,000 651.068 1,200,000 20,099 15,000 676,840 ' 1,255,000 3,287 0 2,906,134 850,000 2,909,421 ~,ooo 0 923,071 0 923,071 n 1,589,612 1,699,000 85.890 23.000 1,675,502 1,722,M)o 1,463,766 1,508,000 62,182 200,ooo 74,241 4,300 1,600,189 1,712,300 26,295 106,000 3,888,912 4,144,400 620,769 0 4,535,976 4,250,400 ESTIMATED REVENUE 2005-06 95.000 2,200.240 0 I 0 875.000 675,000 p 1,899,190 20,ooo 1,919,190 1,572,080 200,000 0 1,772,080 100,OOO 4,050,600 0 4,150,600 DIFFERENCE AS 46 OF FY 04-05 2004-05 TO PROJECTED 2005-06 0.0% 0 10.0% 200,610 -100.0% (31,882) 7.9% 168.728 0.0% 0 7.1% 85,000 -33.3% (5.ow 6.4% 80,000 0.090 0 2.9% -100.0% 2.9% 25,000 0.0% 0.0% n no/. __ .. 0.0% 0 11.8% 200,190 -13.0% (3,000) 11.5% 197,190 4.3% 64,080 0.0% 0 -100.0% (4,300) 3.5% 59,780 -5.7% (6,000) -2.3% (93.800) 0.0% 0 -2.4% (99,800) 3.6% 430.898 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOURCE ACTUAL PROJECTED REVENUE REVENUE 2003-04 2004-05 IREDEVELOPMENT FUNDS VILLAGE OPERATIONS I DEET SERVICE RENTAL INCOME TAX INCREMENT INTEREST OTHER TOTAL VILLAGE LOW AND MOD INCOME HSNG TAX INCREMENT INTEREST TOTAL 39,434 1,734,557 20,717 12,916 1,807,624 433,639 100.667 53d 306 SCCRA OPERATIONS I DEET SERVICE TAX INCREMENT INTEREST TOTAL 712.273 21.202 733.475 SCCRA LOW AND MOD INCOME HSNG TAX INCREMENT INTEREST TOTAL 237,424 4,647 242.071 83,054 1,758,000 22,000 20,000 1,883,054 439,500 60.000 499.500 143,622 25,000 168,622 47,875 12,500 60.375 TOTAL REDEVELOPMENT FUNDS 3.31 7.476 2,611,551 ESTIMATED REVENUE 2005-06 83.054 1,846,000 20,000 5.000 1,954,054 460,000 100,000 560,000 0 12,000 12,000 0 8,000 8.000 2,534,054 DIFFERENCE AS Yo OF FY 04-05 2004-05 TO PROJECTED 2005-06 0.0% 0 5.0% 88,oOo -9.1% (2,000) -75.0% (15,000) 3.8% 71,000 4 7% 20,500 66.7% 40,000 12.1% 60,500 -1 00.0% (1 43,622) -52.0% (13,000) -100.0% (47,875) -36.0% (4,500) -86.8% (52.375) -3.0% (77,497) TOTAL OPERATING $1 58,144,570 $159,742,336 $1 62,414,382 1.7% $ 2,672,046 33 Exhibit 4 CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE 2004-05 2004-05 2002-03 2003-04 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES BUDGET GENERAL FUND POLICY AND LEADERSHIP GROUP CITY COUNCIL CITY MANAGER 27321 1 286.353 322.057 332,403 1,228,707 1,023,959 1,129,686 1,314.1 11 COMMUNICATIONS 472,185 595,310 795,810 810.970 CITY CLERK 290.791 269,054 145,177 124,2 15 CITY AlTORNEY 880.955 937,889 1,042,762 1,010,674 CITY TREASURER 138.606 163,718 157,853 161,684 TOTAL POLICYREADERSHIP GROUP 3.079.707 3,382.010 3,777,770 3,668.653 ADMINISTRATIVE SERVICES ADMINISTRATION 561,950 506,966 610,000 610,743 FINANCE 2,434,193 2.579.645 2,547,800 2,599,435 HUMAN RESOURCES 1,336.41 9 1,475,974 1.91 5,040 1,983,055 RECORDS MANAGEMENT (1) 0 0 763,096 792,656 TOTAL ADMINISTRATIVE SERVICES 4,332,562 4,562,585 5,835,936 5,985.889 PUBLIC SAFETY POLICE 16,038,113 18,333,703 20,850,000 19,972,533 11,003,474 12,149.739 12,928.892 13.1 25,787 FIRE TOTAL PUBLIC SAFETY 27,041.587 30,483,442 33,778.892 33,098.320 COMMUNITY DEVELOPMENT COMMUNITY DEVEL ADMlN 51 2,252 476,278 557.183 528,556 GEOGRAPHIC INFORMATION 260.266 289,161 229,369 296.850 ECONOMIC DEVELOPMENT 177,090 173,627 165,661 185.073 PLANNING 2,989,687 3,505,566 2,969,760 3.41 512 1 1,496,107 1,906.938 BUILDING 1,658,873 1,622,392 6,067,024 5,418.080 6,332,538 TOTAL COMMUNITY DEVELOPMENT 5,598,168 COMMUNITY SERVICES LIBRARY 7,454,753 7,916,003 8,372,176 8,343,338 CULTURAL ARTS PROGRAM 664,409 661,922 776,899 691,099 RECREATION 4,255,580 4,551,325 4,934,000 4,934,953 SENIOR PROGRAMS 558,142 586.029 785,137 786.817 TOTAL COMMUNITY SERVICES 12,932,884 13.71 5,279 14,868.21 2 14,756,207 NOTE: Estimated expenditures may exceed Adopted budget since they include prior year budget appropriations 2005-06 PROPOSED BUDGET 360,861 1,333,318 937,031 122,070 1,135,883 173,113 4,062,276 643.1 47 2,781,202 2,195,416 828.401 6,448.166 21,874.208 13,612,016 35,486,224 741,849 321,692 226,517 3,246,272 2,031,119 6,567,449 8,861,081 767,022 5263,482 884.317 15,775,902 %INCR (DEC) 04-05 BUD TO 05-06 BUD 8.6% 8.5% 15.5% -1.7% 12.4% 7.1% 10.7% 5.3% 7.0% 10.7% 4.5% 7.7% 9.5% 3.7% 7.2% 40.4% 8.4% 22.4% -4.9% 6.5% 3.7% 6.2% 11 .O% 6.7% 12.4% 6.9% (1) Records Management Internal Service fund was dissolved and the program costs were split between the General fund and the Information Technology Internal Service fund in FY05. (2) Arts General Donation and Sister Cily Donation funds were dissolved and the program revenue and costs were moved to the Arts General fund . CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE %INCR (DEC) 04-05 BUD TO 05-06 BUD 2004-05 2004-05 2002-03 2003-04 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES BUDGET PUBLIC WORKS PUBLIC WORKS ADMIN 757,423 752,433 855,586 869,734 ENGINEERING 5,795,740 5,724,009 6,460,163 6,262,145 FACILITIES MAINTENANCE 2,343,468 2,800,154 3,016,250 2,987,015 PARK MAINTENANCE 3,127,448 3,434,194 3,660,000 3,557,094 STREET MAINTENANCE 2,331.712 2,479,551 2.405.000 2,496,233 TRAFFIC SIGNAL MAINT 502,211 577,644 765,000 720,991 TRAILS MAINTENANCE 739 63,796 76,000 76,269 TOTAL PUBLIC WORKS 14,858,741 15,831,781 17,237,999 16,969,481 NON-DEPARTMENTAL COMMUNITY PROMOTION COMMUNITY CONTRIBUTIONS BEACH PARKING HIRING CENTER HOSP GROVE PAYMENT PROPERTY TAX AND OTHER ADMIN DUES & SUBSCRIPTIONS INFRASTRUCTURE REPLACE TRANE MANAGEMENT INCENTIVE PAY LEGAL SERVICES GOLF COURSE TRANSFER TRANSFER TO CIP TRANS TO STORM WATER PGM MlSC I TRANSFERS OUT TOTAL NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND 406,220 21,840 0 83,475 800,000 341,190 48,379 3,500.000 0 109,900 600,000 35,000,000 0 468,135 112,000 0 83,084 800,000 357,643 43.210 3,605,000 0 272,282 0 0 0 420,281 47,000 0 83.799 800,000 390,000 70.000 3,830.000 0 50.000 0 800.000 0 509.100 0 36.000 85.000 800,000 390,400 72,900 3,830.000 580,000 250,000 0 800,000 0 374.361 568,540 40,000 0 41,285,365 6,309,894 6,531.080 7,353,400 109,129,014 80,352,015 87,447,969 88,164,488 0 0 2.300,000 2,300,000 109,129,014 80,352,015 89,747,969 90,464,488 2005-06 PROPOSED BUDGET 956,235 6,774,725 3.1 16,747 4,437,758 2,670,829 828,287 82,251 18,866,832 0 0 36.000 85,000 800.000 420,400 73,150 4,250,000 500,000 250,000 0 600.000 0 0 7,014,550 94,221,399 2.300.000 96,521,399 9.9% 8.2% 4.3% 24.8% 7.0% 14.9% 7.8% 1 1.2% -100.0% 0.0% 0.0% 0.0% 7.7% 0.3% 11 .O% -1 3.8% 0.0% -25.0% -4.6% 6.9% 0.0% 6.7% CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE %INCR (DEC) 04-05 BUD TO 05-06 BUD 2004-05 2004-05 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES BUDGET 2002-03 2003-04 ISPECIAL REVENUE FUNDS I POLICE ASSET FORFEITURE COPS FUND POLICE GRANTS HOUSING SECTION 8 HOUSING TRUST LIBRARY ENDOWMENT FUND LIBRARY GIFTSIBEQUESTS TREE MAINTENANCE MEDIAN MAINTENANCE STREET LIGHTING BUENA VISTA CRK CHNL MNT LLD #2 ARTS SPECIAL EVENTS SENIOR DONATIONS CDBG ENTITLEMENT COMMUNITY ACTIVITY GRANTS CULTURAL ARTS PROGRAM SISTER CITY DONATIONS (2) ARTS GALLERY DONATIONS (2) RECREATION DONATIONS TOTAL SPECIAL REVENUE FUNDS 7821 1 180,153 190,411 5,019,097 207,489 11,850 80,327 674,596 536,783 934,504 88.41 8 0 60.1 09 25,425 805,723 95.355 5,174 0 19.566 16.970 65,597 242,736 41,487 5,724,867 2,843,955 9,066 76,312 665.078 523,055 983.443 50,431 17.124 47,690 19,654 713,751 52,745 14,480 0 1,615 4.429 88.795 21 1,968 88,200 6,409,823 3.577.1 85 10,350 62,869 872,394 715,000 1,124,073 183,995 41,082 42,652 6,000 671,404 49,600 15,141 0 6,000 13.000 9,030,161 12.097.51 5 IENTERPRISE FUNDS I 14,189.531 57,000 233,710 0 6,042,631 256,983 12,000 0 742,682 701,469 985,400 171,800 28,205 45,596 0 688.1 11 50,000 15,000 3,400 14,000 8,700 10,056.687 WATER OPERATIONS 19,038,158 20,656,334 20,525.157 20,945,004 RECYCLED WATER OPERATIONS 1,552,164 1,762,349 2,206,050 1,730,385 SANITATION OPERATIONS 6,248,394 7.174.898 7,960.745 6,859,054 SOLID WASTE MANAGEMENT 2,511,923 2,263,022 1,635,483 1,784,312 GOLF COURSE 93,341 53,917 95,893 230,000 TOTAL ENTERPRISE FUNDS 29,443,980 31,910,520 32,423,328 31,548,755 IINTERNAL SERVICE FUNDS I WORKERS COMP SELF INSURANCE 2,124,381 LIABILITY SELF-INSURANCE 1,331,904 HEALTH INSURANCE 2,674,7 1 4 RECORDS MANAGEMENT (1) 905.871 VEHICLE MAINTENANCE 1,644,951 VEHICLE REPLACEMENT 1,140,045 INFORMATION TECHNOLOGY 4,082.887 TOTAL INTERNAL SERVICE FUNDS 13,904,753 2,496,721 2,086.026 1,171,663 1,047,883 2,945,620 861.000 983,010 0 1,904,927 1,860,000 1 ,146,100 828.000 4,273,326 5,400,000 14,921,367 12,082,909 2,223,498 1,494,712 1,013.268 0 1,889,696 1,808.000 5,010.367 13,439,541 2005-06 PROPOSED BUDGET 89,200 135,000 0 5,980,915 417,983 12,000 0 653,298 564,612 1,177,027 104,600 63,571 37,446 170,000 637,549 30,000 28,000 0 0 22.500 10,123,701 22,244,186 2,644.807 7,703,159 2,128.647 125,000 34,845,799 2.416.866 1.786.631 941,500 0 2,069.676 1,170.0OO 4,682,332 13,067,005 56.5% -42.2% -1.0% 62.7% 0.0% -12.0% -19.5% 19.4% -39.1 Yo 125.4% -17.9% -7.3% -40.0% 86.7% -100.0% -100.0% 158.6% 0.7% 6.2% 52.8% 12.3% 19.3% -45.7% 10.5% 8.7% 19.5% -7.1% 9.5% -35.3% -6.5% -2.8% NOTE: Estimated expenditures may exceed Adopted budget since they include prior year budget appropriations. (1) Records Management Internal Service fund was dissolved and the program costs were split between the General fund and the Information (2) Arts General Donation and Sister City Donation funds were dissolved and the program revenue and costs were moved to the Arts General fund . Technology Internal Service fund in N05. 2004-05 2004-05 2002-03 2003-04 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES BUDGET REDEVELOPMENT I VILLAGE OPERATIONS I DEBT SVC 2,286,766 1,977,189 3,890,472 1,530,922 VILLAGE LOW/MOD INCOME HSNG 107.647 51,324 77,746 117,005 SCCRA OPERATIONS I DEBT SVC 168,527 298.553 528,119 435,526 -32.0% -9.8% SCCRA LOWlMOD INCOME HSNG 16,497 22,661 41,934 54,293 TOTAL REDEVELOPMENT 2,579,437 2,349,727 4,538,271 2.1 37,746 2005-06 04-05 BUD PROPOSED TO BUDGET 05-06 BUD 1,534,579 0.2% 94,396 -19.3% 262,010 -39.8% ITOTAL OPERATING FUNDS 164,087,345 141,631,144 152,982,008 147,64721 7 156,485,806 6.0% Exhibit 5 PERSONNEL ALLOCATIONS FOR 2004-05 AND 2005-06 FINAL PRELIMINARY 2005-06 BUDGET BUDGET REQUESTED MAJOR SERVICE AREA 2004-05 2005-06 CHANGES lPOLlCY AND LEADERSHIP GROUP I I I CITY COUNCIL CITY MANAGER COMMUNICATIONS CITY TREASURER CITY CLERK CITY ATTORNEY )ADMINISTRATIVE SERVICES i ADMINISTRATION RECORDSMANAGEMENT INFORMATION TECHNOLOGY FINANCE RISK MANAGEMENT HUMAN RESOURCES & WORKERS COMP hPUBLlC SAFETY 3 POLICE FIRE )COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT ADMINISTRATION BUILDING & CODE ENFORCEMENT ECONOMIC DEVELOPMENT & REAL PROPERTY MANAGEMENT GEOGRAPHIC INFORMATION SYSTEMS PLANNING HOUSING AND REDEVELOPMENT hCOMMUNlTY SERVICES i LIBRARY CULTURAL ARTS RECREATION & SENIOR PROGRAMS I PU BLIC WORKS i ADMINISTRATION & ENVIRONMENTAL PROGRAMS ENGINEERING SERVICES GENERAL SERVICES MAINTENANCE & OPERATIONS 1 .oo 6.00 2.75 0.75 0.00 7.00 2.00 8.00 16.00 28.00 2.00 10.00 148.00 79.75 3.00 13.00 1 .oo 2.00 25.00 10.00 48.00 5.00 32.50 14.20 51.10 82.85 47.10 1 .oo 6.00 2.75 0.75 0.00 7.00 2.00 8.00 16.00 27.00 2.00 10.00 151.00 79.75 4.00 13.00 1 .oo 2.00 24.00 10.00 48.00 5.00 32.50 14.20 51 60 90.95 49.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (1 .OO) 0.00 0.00 3.00 0.00 1 .oo 0.00 0.00 0.00 (1 .OO) 0.00 0.00 0.00 0.00 0.00 0.50 8.10 2.40 FULL AND 3/4 TIME LABOR FORCE 646.00 659.00 13.00 PERSONNEL ALLOCATIONS FOR 2004-05 AND 2005-06 (Continued) SUMMARY OF REQUESTED LABOR FORCE BY CATEGORY 2005106 Difference Full Time Personnel 640.00 ' 653.00 13.00 2004105 314 Time Personnel in Full Time Equivalents 6.00 6.00 0.00 Hourly Full Time Equivalent Personnel 147.93 147.47 (0.46) TOTAL LABOR FORCE 793.93 806.47 12.54 LIMITED TERM EMPLOYEES 2004105 2005106 Differencc Management Interns 1.50 1.50 0.00 Building Inspector Intern 2.00 0.00 (2.00 Building Inspector Limited Term 0.00 2.00 2.00 GIS Intern 0.50 0.50 0.00 Planning Technician Intern 1 .oo 1 .oo 0.00 TOTAL LIMITED TERM EMPLOYEES 5.00 5.50 0.50 Legal Intern 0.00 0.50 0.50 UPDATE OF CITY FEES AND CHARGES FOR S'ERVICES (EXHIBITS 6-1 THROUGH 6-8) Exhibit 6-1 FACILITY FEE SCHEDULE AND CLASSIFICATIONS Fees are based on an hourly rate, with a two-hour minimum. An extra staffing fee of $15.00 per hour, per staff person is required for all recreation usages other than regular operation hours. For the Swim Complex, if clean up or more than two lifeguards are required, a staffing fee of $20 per hour per staff is charged. CATEGORIES FACILITIES A B C D E F Synthetic T;urf Field Use Fee# ($500 deposit required) f Day Use N/C NIC 15 20 25 30 Light (Night) Use N/C 5 25 30 35 40 A B D E F 15 20 25 20 25 30 TOURNAMENTS ($500 deposit rewired) A B C D E F Lights NIC 15 20 25 30 CLINICS/CAMPS Field N/C Lights N/C 15 Field N/C 514 4 w! 324 NOTES: 1. There is a two-hour minimum for use of all facilities and a three-hour minimum for Park & Picnic Rentals. 2. Day Use for the softball fields and tennis courts is from 8:OO a.m. until dark. An additional amount is charged for lights. 3. Building rentals include use of tables, chairs, P.A. and kitchen facilities when appropriate. 4. A minimum of two-hour staffing fee charge will be assessed for field preparation, and subject to staff availability. 5. A $5 fee will be assessed each non-resident player on teams and/or organizations in classifications “B” and “C” that reserve ballfields in excess of 30 calendar days per season. 3. There will be a $10 fee for residents and a $20 fee for non-residents when a rental includes an inflatable astrojump. heduls heeting room (room identified at no charge) CLASSIFICATION OF APPLICANTS AND FEES Each application will be reviewed by the Recreation Supervisor and classified into a group depending on the type of organization and the intended use. The Recreation Department activities have first priority for the use of the facilities. The classifications are listed in order or priority with classification “A” first, classification “B” second, etc. The City attempts to accommodate all groups; however, there is a limited number of facilities. Unfortunately, the demand exceeds the supply. For that reason, a priority classification system for use had to be established. A. B. C. D. E. F. parks and Recreation activities; Co-sponsored activities; other City departments Examples: Friends of the Library, Carlsbad Book Fair, Recreation and Lap Swim, Swim Lessons, Masters Swim PrOgram Carlsbad resident not-for-profit, civic, social organizations (non-paid management - no voting board member can be paid); any organization sponsoring a public forum or candidates night; public education Examples: Carlsbad Rotary, La Costa Youth Organization, Carlsbad Softball Association, Carlsbad Youth Baseball, Boy Scouts, Carlsbad Homeowner’s Associations, Carlsbad Unified School District Carlsbad resident not-for-profit, civic, social organizations (paid management); private educational institutions *, Exumples: Boy’s and Girl’s Club &, Property Management Associations, Non-resident not-for-profit, educational, civic and social organizations; resident private parties; and locally organized groups whose normal place of meeting is located in the City of Carlsbad. Resident commercial, business, profit making organization, non-resident private party activities Examples: North County AA, YMCA, resident religious and political groups, Mira Costa Examples: Carlsbad Inn, non-resident parties, weddings or receptions Non-resident commercial, business, political, profit making and religious organizations Examples: Trade shows, company training, meetings, seminars, scuba shops, commercials or photo shoots IN ORDER TO QUALIFY AS CLASSIFICATION “B” NON-PROFIT USER, THE ORGANEATION MUST MEET ALL OF THE FOLLOWING CRlTERIA: 1. The organization must be registered as a not-for-profit corporation with the State of California; or, if not registered with the State, must be a Carlsbad Chapter and have a constitution or by-laws that clearly state that the objectives of the organization are of a non-profit, non-commercial nature. 2. The organization must be comprised of volunteers, and 70% of which its membership and participants must be Carlsbad residents. Exception: Classification assignment for sports organizations utilizing athletic fields will be based on player rosters, including player addresses, must have 70% of the players residing in Carlsbad to qualify for “B” classification. Verification of residency may be required. Non-profit sports organizations requesting athletic field use are required to submit player rosters, verified for authenticity by the league’s board of officers, which will be used to determine classification status. Player addresses with a post office box number will not be accepted. Recreation staff will return rosters once classification is determined. Once the classification determination has been made by staff and approved by the Recreation Director, the decision is final. 1. The organization must submit the following: a. If incorporated, submit State incorporation papers and by-laws; if not incorporated, submit constitution and by- laws. b. Financial verification of organization’s exemption from income tax. (Department of the Treasury form 990 or 501(c)(3) determination letter may be used.) c. A signed statement verifying item “2” above. Exhibit 6-2 Summary of Proposed Fee Increases Agua Hedionda Lagoon Permit Fees June 2005 Current Proposed $ % - Fee - Fee Increase Increase Annual Fees Resident - Power Vessels over 8' Non-Resident - Power Vessels over 8' Resident - Board/Sail Boats under 8' & Passives Non-Resident - Passive Vessels under 8' Dailv Fees Resident - Power Vessels over 8' Non-Resident - Power Vessels over 8' Resident - Passive Vessels under 8' Non-Resident - Passive Vessels under 8' 70.00 80.00 10.00 14.3% 90.00 100.00 10.00 11.1% 30.00 35.00 5.00 16.7% 45.00 50.00 5.00 11.1% 14.00 15.00 1 .oo 7.1 % 18.00 23.00 5.00 27.8% 6.00 7.00 1 .oo 16.7% 9.00 12.00 3.00 33.3% Exhibit 6-3 Summary of Proposed Fee Increases Ambulance Fees June 2005 Treat & Treat & Release Release Fee Resident Non-Resident Mileage Oxygen Resident Non-Resident Current Rate $430 $623 $1 1 $43 $1 39 $1 39 Recommended* $51 5 $745 $1 5 $50 $1 50 $1 50 $ increase $85 $1 22 $4 $7 $1 1 $1 1 Yo increase 19.8% 19.6% 36.4% 16.3% 7.9% 7.9% Zone Average $742 $862 SD Region Ave. $641 $744 $1 6 $70 $1 29 $1 41 CITY OF CARLSBAD Ambulance Rates CSA 17 CSA 69 I RESIDENT CURRENT ALS RATES Ambulance Rates I Del Mar/DMH, Solana Beach, Encinitas, RSF & Ptn of Elfin Foresd Santee/Lakeside & East County FPD 1 [ NON RESIDENT CURRENT ALS RATES Ambulance Rates I . 1 I I Non-Resident I I I I Rank I Department I ALSBase I Provider I I I I 1 CSA 17 SDMSE resident charge is through annual property tax assessment - regardless of use of services ~ - \Del Mar/DMH. Solana Beach. Encinitas. RSF & Ptn of Elfin Forest (Zone 1 1 Fire Agencies: North County/EscondidoNista/Oceanside/Carlsbadn M~cos/CSA 17 Exhibit 6-4 Added Cost per Bin Dump Size of Bin 2Yd 3Yd 4Yd 5Yd 6Yd Cos t-Curren t $29.93 $35.00 $42.00 $49.00 $56.00 Cost-Proposed $32.08 $37.52 $45.02 $52.53 $60.03 . SOLID WASTE SERVICE FEES RECOMMENDED FEE INCREASES JUNE 2005 Residential Service Rates: Monthly Curbside Service: Monthly Backyard Service: Commercial Service Rates: Current Proposed $1 6.47 $1 7.50 $21.65 $23.60 3 I Proposed I $277.33 1 $507.82 I $738.32 I $968.82 1 $1,199.32 I $1,429,824 Current Proposed Curbside service 1 X per week: $28.89 $30.97 Curbside service 2 X per week: $57.78 $61.94 Curbside service 3 X per week: $86.67 $92.91 Commercial Can Service: (Up to (4) 32 gallon cans) Backyard service 1 X per week: Backyard service 2 X per week: $41.09 $44.05 $82.18 $88.10 Recycling: Non-residential Commercial Accounts $13.41 $14.37 (per month per container) Number of lx per 3yd Bins Week 1 Current $84.86 Proposed $90.97 2 Current $169.04 2x per Week $150.29 $161.11 $300.57 I 1 ProposedI $271.81 I $483.32 1 3 Proposed $181.21 $322.21 Current $253.55 $450.86 No. Bins 1 Number of Pick-ups per Week 1 2 3 4 5 Current $58.70 $98.99 $139.27 $179.56 $214.09 2 Proposed $62.93 $106.1 1 $149.30. $192.48 $229.50 . Current $1 17.40 $197.97 $278.54 $359.1 1 $428.17 ProDosed $125.85 $212.23 $298.60 $384.97 $459.00 Exhibit 6-5 Group VI Large Volume ;roup I Residential Single Family Multi-Family1 Mobile Home' 2 ;row II Commercial (based on volume and 2 ;row 111 Commercial Unit Cost ($/hcf of water) ;roup IV Commercial Group V Institutional Schools per ADA3 Elementary Junior High * Boarding * Uniform Rate Wastewater (Sewer) Rates --- $1.92 $1.92 $1.59 $2.09 $3.30 Current Unit Cost $1 3.50 --- --- --- --- --- ($/hcf of water) --- (based on volume and wastewater strengths) $1.85 $1.85 $1.53 --- $2.01 $3.17 $0.20 $0.39 $0.59 $2.92 Uniform Rate ' Wastewater flow is 90 percent of metered water use. * Non-residential wastewater flow is 95 percent of metered water use. Schools: assumes a 200day working year; ADA: average daily attendance. Denotes charge per student based on ADA, 53 Exhibit 6-6 I ~ee Description Adjustment Plat Appeal - City Council (+ noticing costs) - fee is refundable if appeal is won Appeal - Housing and Redevelopment Commission (+ noticing costs) fee is refundable if appeal is WOI Appeal - Planning Commission (+ noticing costs) fee is refundable if appeal is won Appeal - Redev. Design Review Board (+ noticing costs) fee is refundable if appeal is won Building Permit Fees (55% of 2001 UBC 1-A) Building Plan Check - 65% of Bldg Permit (8% discount on repetitive plan checks) Certificate of Compliance Certificate of Compl. in lieu of Parcel Map Certificate of Correction Community Facilities District Annexation Construction Change Review - Minor (fee plus $155 per sheet) Construction Change Review - Major (fee plus $245 per sheet) Coastal Development Permit (CDP) - Single Family Lot CDP - 2 - 4 unit or lot subdivision (per unit or lot whichever is greater) CDP - 5 or more unit or lot subdivision (per permit) COP Emergency CDP Exemption Coastal Dev. Permit - Non-RDA - Minor Coastal Dev. Permit- Non-RES (fee plus $.lo per square foot) Coastal Development Permit - Major 8 Minor RP's Conditional Use Permit (25% discount may apply) CUP - Amendment CUP - Eio Habitat Preserve CUP - Extension -Regular DayCare Permit DayCare Permit - Center Admin Pmt. DayCare Permit - Extension Duplicate Tracing Fees - Final Parcel and Tract Maps - per sheet (+ $32 per sheet) Easement or Offer to Dedicate or Improve EIA - Single Family EIR Review (+ fbhr after the first 160 hrs of project planner or 40 hrs of Project Engineer) EIR -Addendum (+ fbhr after 1st 10 hrs of project planner) EIR - Focused/Supplemental (+ fbhr after 100 hrs of project planner or 20 hrs Proj Engineer) Encroachment Agreement Processing General Plan Amendment - 0 - 5 Acres General Plan Amendment - Over 5 Acres Grading Permit Application Grading Permit Hillside Dev Permit - Single Family Lot Hillside Dev Permit - Other (Multiple Lots) Hillside Dev Permit Amendment - Single Family Lot Hillside Dev Permit Amendment - Other (Multiple Lots) Improvement Agreement Extension - see Secured Agreement Proc. Ext. Improvement Construction Inspection Fee Improvement Plan Review (Plan Check) Inspection Overtime-per Hour (On Request) - each additional hour at $70 Inspection - Additional Planning Landscape Plan Check EIA -All Others CITY OF CARLSBAD FEE SCHEDULE DEVELOPMENT RELATED SERVICE FEES JUNE 2005 Current Fee Recommended Unit Fee cost 970 760 510 500 510 790 2,850 620 1,035 370 520 815 1,710 2,680 335 180 675 760 510 3,395 1,825 635 685 160 320 70 13 495 1,310 715 15.180 1,900 10,630 255 3,230 4,660 940 1,900 530 1,635 90 65 1070 835 560 550 560 870 3,135 680 1,140 410 570 900 1,880 2,950 370 200 740 835 560 3,735 2,010 700 755 1 75 350 80 15 545 1,440 790 16,700 2,090 11,640 280 3,555 5,125 1035 2,090 585 1,800 100 75 1,4a 2.10: 1,04: 1,397 941 1,031 3,24( 76: 1,47( 82; 1,06: 1,19t 1,89t 3,47: 43t 24C 92: 3,20C 1,281 4.31i 2,31€ 3,93E 93€ 1,825 1,835 1,425 4E 70C 1,785 1,02c 19,465 2,453 11,649 303 4,228 6,175 1,285 2,215 746 2,641 176 96 $ Subsidy 336 1.26E 485 847 385 165 10: a 33c 415 49: 29E 1E 52: 6E 4c 185 2,365 721 582 306 3,23S 181 1,654 1,485 1,345 31 155 345 230 2,765 363 9 23 673 1,050 250 125 161 84 1 76 21 June 2005 CITY OF CARLSBAD FEE SCHEDULE DEVELOPMENT RELATED SERVICE FEES JUNE 2005 Fee Description Landscape Inspection Local Coastal Plan - Amendment Master Plan (+ fbhr after 1st 200 hrs of project planner or 100 hrs project engineer) Master Plan Pre-Submittal Master Plan Amendment - (Minor) (+ fbhr after la' 20 Project Planner or 7 hrs Project Engineer) Neighborhood Improvement Agreements PD/Condo - Residential Additional Permit PD/Condo - Admin Amendment PD/Condo - Minor Amendment PD Res. Amendment - 4 or less PD Res. Amendment - 5 to 50 PD Res. Amendment - 51 or more PD Amendment- Non-Res - 4 or less PD Amendment - Non-Res - 5 to 50 PD Amendment - Non-Res - 51 or more PD Res. - 4 or less PD Res. - 5 to 50 PD Res. - 51 or more PD - Non-Res - 4 or less PD - Non-Res - 5 to 50 PD - Non-Res - 51 or more Planned Industrial Permit Planned Industrial Permit - Amendment Planning Commission Determination - Single Family Planning Commission Determination - Other Planning Commission Discussion Item Precise Development Plan Precise Development Plan -Amendment Pre-Grading Request Preliminary Plan Review - Consistency Determination Preliminary Plan Review - Major Preliminary Plan Review - Minor Quitclaim of Easement Redevelopment Permit Extension (Minor) Redevelopment Permit Exlension (Major) Redevelopment Noticing Fee (Minor) - plus postage Redevelopment Noticing Fee (Major) -plus postage Redevelopment Permit (Admin.) Redevelopment Permit (Minor) - plus noticing costs Redevelopment Permit (Major) - plus noticing costs Redevelopment Permit Amendment (Admin) Redevelopment Permit Amendment (Minor) - plus noticing costs Redevelopment Permit Amendment (Major) - plus noticing costs Right of Way Permit - Minor Right of Way Permit With Encroachment - See Encroachment Agreement Processing Right of Way Permit - Utili (+ actual costs for Insp. and Sr. Imp. time) Right of Way Permit - Utility (By Contract) Satellite Antenna Permit Secured Agreement Proc. Extension Secured Agreement Proc. Replace -+ improvement plan revision fees if required Sidewalk Sign/Outdoor Display Permit, Redevelopment Area Sign Program Sign Program Permit, Redevelopment Area Sign Program Permit Amendment, Redevelopment Area Site Development Plan - Res. <= 4 unitdlots Current Fee Recommended Unit Fee cost I 4,935 31,625 5,380 1,265 360 290 300 560 1,230 4,680 6,315 1,390 5,030 6,810 2,280 6,325 9,995 2,280 6,325 9,995 3,520 1,580 760 1,330 505 5,760 3,130 610 530 530 150 520 575 660 175 345 335 1,245 2,280 130 445 1,095 265 560 560 320 320 575 40 825 225 50 3,380 5,375 34,790 5,920 1,390 400 320 305 615 1,355 5,150 6,950 1,530 5,535 7,490 2,510 6,960 10,995 2,510 6,960 10,995 3,875 1,740 835 1,360 555 6,335 3,445 655 585 585 165 570 635 725 195 380 370 1,370 2,508 145 490 1,205 290 615 615 350 350 635 45 910 250 55 3,720 53 39,OZ 7.02 4,26 50! 42: 30t 65: 1,4% 5,521 7,96t 1,73' 6,18t 8,47; 2,79: 8,73 13,38' 2,84( 7,5% 12,32f 12,32€ 2,081 1,016 1,762 1,362 7,557 4,03i 65E 1,236 1.95E 885 757 675 760 221 41 1 2,31 E 5,316 12.31 9 446 1,942 4,749 38 1 1,024 1,024 405 352 659 285 1,076 602 358 4,018 $ Subsidy t 4,23 1,lOt 2,877 1 O! 1 0: 1 3 13: 37d 1,012 20 1 652 98i 2% 1,774 2,382 33( 63: 1,331 8,451 341 184 402 807 1,221 591 1 653 1,373 1 87 720 40 43 26 31 1,948 3,946 9,811 30 1 1,452 3,544 91 409 409 55 2 24 240 166 352 303 298 June 2005 55 CITY OF CARLSBAD FEE SCHEDULE DEVELOPMENT RELATED SERVICE FEES JUNE 2005 Current Recommended Fee Fee Fee Descriptim Site Development Plan Site Development Plan Amendment (Minor) Site Development Plan Amendment (Major) Special Use Permit - Scenic Corridor Special Use Permit - Flood Plain Special Use Permit - Flood Plain, Coastal High Hazard Area Special Use Permit Amendment - Flood Plain Special Use Permit Amendments - All Other Specific Plan Amendment (Major) (+ fbhr after 180 hr proj planner or 30hrs Proj eng) Specific Plan Amendment (Minor) (+ fbhr after 20 hr proj planner or 7hrs Proj ens) Specific Plan (+ Street Name Change Street Vacation - Regular Street Vacation - Summary Structure Relocation - Use Planning Commission Determination Substantial Conformance Exhibit Rev. Tentative Map Revision - 5- 49 Unitskots + $4Oea 5+ (whichever is greater) Tentative Map Revision - 50+ UniWLots + $15ea 49+ (whichever is greater) Tentative Parcel Map Processing Fee (Minor Subdivision) Tentative Parcel Map 1 yr Extension (per application) Parcel Map (Minor Subdivision) - Final Tentative Tract Map - 5 -49 LoWUnits + $1 IOea. > 5 (whichever is greater) Tentative Tract Map - 50+ LotsNnits + $15ea 49+ (whichever is greater) Tentative Tract Map Extension- 5 to 49 Final Tract Map (+ $5 per Acre) Third Parly Review - plus consultant cost Variance - Administrative Redevelopment Variance - Redevelopment Variance - Engineering Variance - Planning Variance - Administrative (Planning) Variance - Administrative (Planning) Recreational Vehicle Admin. Variance Zone Change - 5 or fewer acres Zone Change - 5.1 or more acres Zone Code Amendment Zoning Compliance Letter Notes: (1) - See attached schedules and rate tables. (2) - Based on number of units or lots whichever is greater (4) - Any Permit Amendment not identified assessed at 50% of original cost. after 1st 200 hrs project planner or 60 hrs project engineer) Unit cost 8,570 2,255 5,810 2,645 2,920 2,120 2,530 1.835 17,000 1,100 26,565 1,240 3,150 2.370 760 3,165 5,760 2,875 1.120 2,850 6,200 12,460 2,185 5,660 560 140 320 570 2140 570 570 3,710 5,030 4,785 9,430 2,480 6,390 2,910 3,215 2,330 2,785 2,020 18,700 1,210 29.220 1,365 3,465 2,580 835 3,480 6,335 3,165 1,230 3.025 6,820 13,705 2,405 6,225 615 1 55 350 630 2355 630 630 4,080 5,535 5,265 10,951 2,619 7,089 3,540 3,882 2,813 3,576 2,556 20,056 4,266 30,191 1,680 4,152 2,587 91 9 6,616 10,480 3,648 1,387 3,031 10,607 18,817 2,894 6,543 724 539 1,435 71 3 3,185 713 675 4,641 6,336 5,995 601 651 210 $ Subsidy 1,521 135 699 63C 667 483 79 1 53€ 1,356 3,056 971 315 687 7 84 3,13€ 4,145 483 157 6 3,787 5,112 489 318 109 384 1,085 83 830 83 45 561 80 1 730 145 (5) - Plus Fish and Game department fee, if any. Currently set at $1,250 for Negative Declaration and $850 for EIR.. (6) - Fees set by State Statute. (7) - For all Assessment Districts using 1915 Act Bonds. (8) - A 25% discount may apply when submitted with another application (9) - A 25% discount will apply when submitted with a General Plan Amendment June 2005 FIRE PROTECTION SYSTEM INSTALLA 9utomatic Sprinkler Systems - Residential System - Commercial System - 1 st riser 1 st floor - Tenant Improvement - ea add'l riser Fire Alarm Systems - I to 25 Devices - 26 or more Devices Other Fixed Fire Systems - Hood and Duct - Halon - Special Chemical Agent - Standpipe - Paint Spray Booth Repeated Inspection on new construction FIRE PROTECTION SYSTEM INSTALLA Automatic Sprinkler Systems - Residential System - Commercial System - 1 st riser 1 st floor - Tenant Improvement - ea add'l riser Fire Alarm Systems - 1 to 25 Devices - 26 or more Devices Other Fixed Fire Systems - Hood and Duct - Halon - Special Chemical Agent - Standpipe - Paint Spray Booth Repeated Inspection on new construction Schedule #l DN FEES - Current Plan Inspection Fees Total I Review No. I cost Fee 1. $55 55 3 at $55 each $220 1,150 565 1 at 60 each 115 $50 minimum 1 at $55 each $105 90 2 at 55 each 200 55 60 55 70 70 1 at 60 each 115 2 at 50 each 1 60 1 at 60 each 115 2 at 55 each 180 2 at 55 each 180 1 at 65 each 65 DN FEES - Recommended Schedule #l Plan Inspection Fees Total Review No. I cost Fee $60 60 3 at $60 each $240 1,150 565 1 at 60 each 120 $55 minimum 1 at $60 each $1 15 95 2 at 60 each 21 5 60 60 60 75 75 1 at 60 each 120 2 at 50 each 160 1 at 60 each 120 2 at 60 each 1 95 2 at 60 each 195 1 at 70 each 70 June2005 57 BRADING PERMIT APPLICATION FEES - Current 4mount Fee 100 CY" or less $320 Schedule #2 101 to 1,000CY 1,001 to 10,000 CY 10,001 to 100,000 CY 100,001 to 200,000 CY 200,001 CY or more $635 for the first 100 cubic yards plus $1 15.00 for each additional 100 cubic yards or fraction thereof. $1,900 for the first 1,000 cubic yards plus $1 15.00 for each additional 1,000 cubic yards or fraction thereof. $2,990 for the first 10,000 cubic yards plus $175.00 for each additional 10,000 cubic yards or fraction thereof. $4,565 for the first 100,000 cubic yards plus $275.00 for each additional 10,000 cubic yards or fraction thereof. $7,315 for the first 200,000 cubic yards plus $125.00 for each additional 100,000 cubic yards or fraction thereof. CY = Cubic Yards GRADING PERMIT APPLICATION FEES - Recommended 4mount Fee 100 CY* or less $350 Schedule #1 101 to 1,000 CY 1,001 to 10,000 CY 10,001 to 100,000 CY 100,001 to 200,000 CY 200,001 CY or more $700 for the first 100 cubic yards plus $1 15.00 for each additional 100 cubic yards or fraction thereof. $2,090 for the first 1,000 cubic yards plus $1 15.00 for each additional 1,000 cubic yards or fraction thereof. $3,290 for the first 10,000 cubic yards plus $175.00 for each additional 10,000 cubic yards or fraction thereof. $5,020 for the first 100,000 cubic yards plus $275.00 for each additional 10,000 cubic yards or fraction thereof. $8,050 for the first 200,000 cubic yards plus $125.00 for each additional 100,000 cubic yards or fraction thereof. CY = Cubic Yards June 2005 51 GRADING PERMIT FEES - Current Schedule #3 4rnount Fee 100 Cubic Yards (CY) or less $320 101 to 1,000 CY $320 for the first 100 CY plus $65 for each additional 100 CY or fraction thereof. 1,001 to 10,000 CY $905 for the first 1,000 CY plus $65 for each additional 1,000 CY or fraction thereof. 10,001 to 100,000 CY $1,490 for the first 10,000 CY plus $125 for each additional 10,000 CY or fraction thereof. 100,001 to 200,000 CY $2,615 for the first 100,000 CY plus $125 for each additional 10,000 CY or fraction thereof. 200,001 to 400,000 CY $3,865 for the first 200,000 CY plus $190 for each additional 10,000 CY or fraction thereof. 100,000 to 1,000,000 CY $7,665 for the first 400,000 CY plus $950 for each additional 100,000 CY or fraction thereof. 1,000,001 CY or more $1 3,365 for the first 1,000,000 CY plus $685 for each additional 100,000 CY or fraction thereof. 3RADING PERMYT FEES - Recommended Schedule #3 4rnount Fee IO0 Cubic Yards (CY) or less $350 IO1 to 1,000 CY 1,001 to 10,000 CY 10,001 to 100,000 CY 100,001 to 200,000 CY !00,001 to 400,000 CY 100,000 to 1,000,000 CY $350 for the first 100 CY plus $65 for each additional 100 CY or fraction thereof. $995 for the first 1,000 CY plus $65 for each additional 1,000 CY or fraction thereof. $1,640 for the first 10,000 CY plus $125 for each additional 10,000 CY or fraction thereof. $2,880 for the first 100,000 CY plus $125 for each additional 10,000 CY or fraction thereof. $4,250 for the first 200,000 CY plus $190 for each additional 10,000 CY or fraction thereof. $8,430 for the first 400,000 CY plus $950 for each additional 100,000 CY or fraction thereof. ,000,001 CY or more $14,700 for the first 1,000,000 CY plus $685 for each additional 100,000 CY or fraction thereof. June 2005 4q MPROVEMENT CONSTRUCTION INSPECTION FEES - Current Schedule #4 Zost of Improvements Fee bo to $20,000 5.5% - $315 Minimum §20,001 to $50,000 §50,001 to $100,000 §lOO,OOl to $250,000 §250,001 to $500,000 §500,001 to $1,000,000 §l ,000,001 or more $1,265 for the first $20,000 plus $250 for each additional $10,000 or fraction thereof $2,530 for the first $50,000 plus $125 for each additional $10,000 or fraction thereof $3,165 for the first $100,000 plus $100 for each additional $10,000 or fraction thereof $4,680 for the first $250,000 plus $105 for each additional $10,000 or fraction thereof $7,340 for the first $500,000 plus $105 for each additional $10,000 or fraction thereof $1 2,525 for the first $1,000,000 plus $105 for each additional $10,000 or fraction thereof IMPROVEMENT CONSTRUCTION INSPECTION FEES - Recommended Cost of improvements Fee $0 to $20,000 Schedule #4 5.5% - $345 Minimum $20,001 to $50,000 $50,001 to $1 00,000 $100,001 to $250,000 $250,001 to $500,000 $500,001 to $1,000,000 $1,000,001 or more $1,390 for the first $20,000 plus $250 for each additional $10,000 or fraction thereof $2,780 for the first $50,000 plus $125 for each additional $10,000 or fraction thereof $3,480 for the first $100,000 plus $100 for each additional $10,000 or fraction thereof $5,150 for the first $250,000 plus $105 for each additional $10,000 or fraction thereof $8,075 for the first $500,000 plus $105 for each additional $10,000 or fraction thereof $1 3,780 for the first $1,000,000 plus $105 for each additional $1 0,000 or fraction I thereof June 2005 bb IMPROVEMENT PLAN REVIEW FEES - Curtent Cost of Improvements Fee $0 to $20,000 Schedule #5 $1,015 plus 5% of value of improvements $20,001 to $50,000 $1,290 plus 4% of value of improvements - $2,440 minimum $50,001 to $1 00,000 $1,660 plus 3% of value of improvements - $4,040 minimum $100,001 to $250,000 $1,875 plus 2.5% of value of improvements - $6,120 minimum §250,001 to $500,000 $5,670 plus 2% of value of improvements - $1 3,250 minimum §500,001 to $1,000,000 $9,995 plus 1.5% of value of improvements - $20,660 minimum 3ver $1,000,000 (Improvement Plan Check Fees are based on the current City of San Diego unit prices. This includes the cost of curbs, gutters, sidewalks, asphalt or concrete paving, storm drains, etc.) $10,250 plus 0.75% of value of improvements - $31,980 minimum [IMPROVEMENT PLAN REVIEW FEES - Recommended Schedule #5 Cost of Improvements Fee $0 to $20,000 $1 ,I 15 plus 5% of value of improvements $20,001 to $50,000 $50,001 to $100,000 $1 00,001 to $250,000 $250,001 to $500,000 $500,001 to $1,000,000 $1,420 plus 4% of value of improvements - $2,440 minimum $1,825 plus 3% of value of improvements - $4,040 minimum $2,065 plus 2.5% of value of improvements - $6,120 minimum $6,240 plus 2% of value of improvements - $13,250 minimum $10,995 plus 1.5% of value of improvements - $20,660 minimum Over $1,000,000 (Improvement Plan Check Fees are based on the current City of San Diego unit $1 1,275 plus 0.75% of value of improvements - $31,980 minimum rices. This includes the cost of curbs, gutters, sidewalks, asphalt or concrete aving, storm drains, etc.) June 2005 LANDSCAPE INSPECTION FEES - Current Schedule #7 Zost of Improvements Fee $0 to $20,000 $445 $20,001 to $50,000 $50,001 to $100,000 $1 00,001 to$250,000 $250,001 to $750,000 $750,001 and Over $630 for the first $20,000 of improvements plus $20 for each additional $10,000 or fraction thereof $885 for the first $50,000 of improvements plus $20 for each additional $1 0,000 or fraction thereof $1,265 for the first $1 00,000 of improvements plus $1 50 for each additional $100,000 or fraction thereof $1,520 for the first $250,000 of improvements plus $1 50 for each additional $1 00,000 or fraction thereof $2,400 for the first $750,000 of improvements plus $1 50 for each additional $1 00,000 or fraction thereof LANDSCAPE INSPECTION FEES - Recommended Zost of Improvements Fee $0 to $20,000 $490 Schedule #7 $20,001 to $50,000 $50,001 to $100,000 61 00,001 to$250,000 b250,OO 1 to $750,000 6750,001 and Over $695 for the first $20,000 of improvements plus $20 for each additional $1 0,000 or fraction thereof $975 for the first $50,000 of improvements plus $20 for each additional $1 0,000 or fraction thereof $1,390 for the first $100,000 of improvements plus $150 for each additional $1 00,000 or fraction thereof $1,670 for the first $250,000 of improvements plus $150 for each additional $1 00,000 or fraction thereof $2,640 for the first $750,000 of imprwements plus $1 50 for each additional $1 00,000 or fraction thereof June 2005 0 LANDSCAPE PLAN CHECK FEES - Current Cost of Improvements Fee $0 to $20,000 $445 $20,001 to $50,000 $50,001 to $100,000 $100,001 to $250,000 $250,001 to $500,000 $500,001 to $1,000,000 Over $1,000,000 Schedule #8 $635 plus 3.0% over $20,000 $1,835 plus 1.5% over $50,000 $2,780 plus 0.2% over $100,000 $3,420 plus 0.15% over $250,000 $4,175 plus 0.1% over $500,000 $6,325 plus 0.07% over $1,000,000 LANDSCAPE PLAN CHECK FEES - Recommended .Cost of Improvements Fee $0 to $20,000 490 Schedule #8 $20,001 to $50,000 1$50,001 to $100,000 $100,001 to $250,000 $250,001 to $500,000 $500,001 to $1,000,000 Over $1,000,000 $700 plus 3.0% over $20,000 $2,020 plus 1.5% over $50,000 $3,060 plus 0.2% over $100,000 $3,760 plus 0.15% over $250,000 $4,590 plus 0.1% over $500,000 $6,960 plus 0.07% over $1,000,000 BUiLDiNG PERMiT FEES Schedule #9 (55% of the 2001 Uniform Bulldlng Code Table l-A fee schedule) Fees are based on the Awl1 2005, Building Valuation Multipliers published by the San Dlego Area Chapter of the International Code Council. Total Valuation Fee $1 .OO to $500.00 $12.93 $501 .OO to $2,000.00 $12.93 for the first $500.00 plus $1.68 for each additional $100.00, or fraction thereof, to and including $2,000.00 $38.09 for the first $2,000.00 plus $7.70 for each additional $1,000.00, or fraction $2,001 -00 to $25,000.00 ' thereof, to and including $25,000.00 $215.19 for the first $25,000.00 plus $5.56 for $25,001 .OO to $50,000.00 I each additional $1,000.00, or fraction I thereof, to and including $50,000.00 $354.06 for the first $50,000.00 plus $3.85 for $50,001 .OO to $100,000.00 each additional $1,000.00, or fraction thereof, to and including $100,000.00 $546.56 for the first $100,000.00 plus $3.08 for each additional $1,000.00, or fraction thereof, to and including $500,000.00 $1778.56 for the first $500,000.00 plus $2.61 for each additional $1,000.00, or fraction $1 00,001 .OO to $500,000.00 $500,001 .oo to $1,000,000.00 thereof, to and including $1,000,000.00 $3,084.81 for the first $1,000,000.00 plus fil,OOO,OOl .OO and up $2.01 for each additional $1,000.00 or fraction thereof 3ther lnspectlons and Fees: I. Inspections outside of normal business hours $60.00 per hour* (minimum charge - 2 hours) ?. Reinspection fees assessed under provisions of Section 305 (9) $60.00 per hour' 3. Inspections for which no fee is specifically indicated $60.00 per hour* (minimum charge - one-half hour) 1. Additional plan review required by changes, additions or revisions to approved plans $60.00 per hour' (minimum charge - one-half hour) This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved. Jotwithstanding other provisions of this section, the building permit fee for factory built housing shall be 25% )f the fee shown in Schedule #9, and the plan check fee shall be 65% of the building permit fee. June 2005 63 Exhibit 6-7 Fee per gross acre Area / Basin Name A Euena Vista Lagoon B Agua Hedionda Lagoon C Encinas Creek D Batiquitos Lagoon CITY OF CARLSBAD PROPOSED REVISIONS TO THE MASTER FEE SCHEDULES JUNE 2005 Current Revised Low High Low High Runoff Runoff Runoff Runoff 51,865 $3,052 $2,029 $3,321 4,009 6,560 4,363 7,138 2,997 4,905 3,261 5,338 41 67 45 73 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 $45,000 $2,000 License lax on New Construction-mobile homes $1,582 $1,721 $1 39 Traffic Impact Current Revised Chanae Sewer Benefit Area Fees Current Revised Chanas Area A $ 3845 418 $ 34 Area B 675 735 60 Area C 1,675 1,799 124 Area D 1,678 1,803 125 Area E 2,475 2,658 183 Area F 2,488 2,673 185 Area 0 105 114 9 Area H 808 859 51 Area I 392 427 35 Area J 1,351 1,470 119 Area K 2,725 2,965 240 Area L 1,067 1,161 94 Area M 52 57 5 Isridge & Thoroughfare District #2 Fees Current Revised Change( Zone 5 $246 5262 51 6 Zone 20 1,278 1,359 81 Zone 21 1,032 1,097 65 Bridge & Thoroughfare District #3 Fees Current Revised Change Fee per ADT $1 40 5152 51 2 Agricultural Mitigation Fees Current $9,744 Mater Connection Fees Current Revised Chanael )isDlacement meter 'urbo (irriaation meters) 'urbine Meter ~ 1 - 8" $21 6,000 $229,630 $13,6301 518" 314" 1" 1 112" 2' 3" 4' 6" 8" 1 112" 2" 3' 4" 6" 8" 4 6 $2,999 $4,274 $6,748 $12,746 $19,194 $33,739 $52,483 $97,468 $1 15,200 $14,964 $23,992 $52,483 $1 49,950 $299,900 $420,000 $89,970 $1 87,438 $3,188 $4,544 $7,174 $13,550 $20,405 $35,868 $103,618 $122,469 $1 5,908 $25,506 $159,411 $318,822 $446,502 $95,647 $1 99,264 $55,794 $55,794 $189 $270 $426 $804 $1,211 $2,129 $331 1 $6,150 $7,269 $944 $1,514 $3,311 $9,461 $18,922 $26,502 $5,677 $1 1,826 Exhibit 6-8 PARK IN-LIEU FEES Quadrant District 1 - NW Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home District 2 - NE Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home District 3 - SW Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home District 4 - SE Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home Value Per Acre $400,000 300,000 300,000 300,000 Current Fee Per Unit $3,251 2,639 2,435 2,087 2,436 1,977 1,825 1,564 2,436 1,977 1,825 1,564 2,436 1,977 1,564 1,825 The Park Fee ordinance establishs a method of determining park land values in each quadrant Fee Per Unit Quadrant District 1 - NW Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home District 2 - NE Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home Jistrict 3 - SW Single Family Detached 8, Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home listrict 4 - SE Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home Value.Per Acrc $977,W 732,OW 732,000 732,000 $7,64! 6,411 6,19( 4,93 5,72€ 4,804 4,636 3,696 5,728 4,804 4,636 3,696 5,728 4,804 4,636 3,696 he Park Fee ordinance establishs a method of determining park land values in each quadrant June 2005 City of Carlsbad2005-2006 Operating Budget WorkshopEffectively Managing Today’s Effectively Managing Today’s Resources for TomorrowResources for Tomorrow Budget CalendarCOUNCIL MEETINGS•May 17 – CIP Workshop•June 7 – Operating Budget Workshop•June 21 – Operating Budget and CIP–Public Hearing and AdoptionOTHER PUBLIC MEETINGS•June 15 – Citizen’s Budget Forum Citizen’s Budget Forum•When:Wednesday, June 15th•Where:Faraday Center1635 Faraday Avenue•Time:5:00pmCall the Finance Department at(760) 602-2430 for additional information. The ProcessHow does the City staff determine what they should be doing??? City of Carlsbad BudgetWaterReplace-mentSewerITCDBGHousingGeneralFundGCCCFDTIFParkIn LieuPublic Facilities FeesOperating BudgetCapital Improvement Program City of CarlsbadCombined BudgetInternal Services5%Enterprise14%Special Revenue4%Redevelop-ment1%General40%$244.2 millionOperating64%Capital (CIP)36% 2005-06 Operating Budget Agenda9Economic Overview and Revenues9Forecast for the General Fund9Budget Requests9Other Fund Summaries9Changes to City Fees 9Program Options National Perspective•GDP growth 3.5%•The current expansion is 12 quarters old – how much longer?UCLA Anderson Forecast: “a recession is in the future; he just doesn’t know when yet. He doesn’t see it in 2005, but believes it could happen in 2006” State PerspectiveUCLA Anderson forecast:Weaknesses–Housing bubble??–Job qualityStrengths–Personal Income-5.7%–Taxable sales- 5.4%–Travel and tourismgrowthGrowing….slowly Index of Leading Economic IndicatorsSan Diego County 2001-20050102030405USD Index of Leading Economic IndicatorsSan Diego County 2001-2005USD Economic Indicators“Although a downturn in the local economy is unlikely in 2005, the outlook is for a weakening to occur in the second half of the year.” Carlsbad’s Economic Profile•Home prices•Taxable transactions•Tourism•Population growth $0$100$200$300$400$500$600$700$8002000 2001 2002 2003 2004Fiscal Year28% increaseCarlsbadMedian Home Prices$725,000In thousandsResales Residential Permits05001,0001,5002,0002,50096 98 00 02 04 06 08 10FutureFiscal Year•Bressi Ranch 623 units•La Costa Valley >2,000 units•Robertson Ranch 1,100 unitsFuture Master Planned Communities Assessed Values and Property TaxesFYBillionsMillions12% increase in assessed values;33% growth in property taxes$0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.0$18.0$20.097 98 99 2000 '01 '02 '03 '04 '05e '06e$0$5$10$15$20$25$30$35$40Assessed ValuesProperty TaxesVLF Swap Vehicle License FeesEstimate: $500,000 for ‘06$0$1$2$3$4$5$6'97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11In Millions‘06VLF Loan to State$1.5 millionVLF/ Property Tax Swap$5 million Growth Rates of Assessed Values to VLF-15%-10%-5%0%5%10%15%20%25%'93 '95 '97 '99 '01 '03Assessed ValuesVLF Sales Taxes by Category$28.7 millionProp 1724%Construction4%Misc0%Food11%Transportation37%Retail31%Business13% Sales Taxes by Geo Area$0$1$2$3$4$5$6$799/4 00/2 00/4 01/2 01/4 02/2 02/4 03/2 03/4 04/2 04/4MillionsBenchmark Year Auto Mall Carlsbad Redevelopment Area Plaza Camino Real Carlsbad Company Stores The Forum 98 99 00 01 02 03 04 05e 06eAll OthersLa CostaFour SeasonsNew Hotels$9.8M$9.3MTransient Occupancy TaxesNeed to finish$10.3M Hotel Rooms in Carlsbad02,0004,0009800020406Four SeasonsGrand PacificHiltonInns of AmericaOver 3,500 RoomsExtended StayMarriott, Residence InnHampton Inns Franchise Taxes$0$1$2$3$4$5$6$7$8'00 '01 '02 '03 '04 '05e '06eCableTrashGas/ElecIn Millions$7.5M$5.7M$5.3M Operating Revenues By SourceGrants/Donations4%Other Gov't & Other2%Interest/ Rents3%Licenses/ Permits / Fines2%Interdept.9%Taxes57%Fees/ Charges24%Total = $162.4 million Operating Revenues By Fund TypeInternal Services24%General64%Enterprise20%Special Revenue6%Redevelopment2%Total = $162.4 million Operating Revenues By Fund TypeInternal Services24%General64%Enterprise20%Special Revenue6%Redevelopment2%Total = $162.4 million General Fund RevenuesFiscal Year 2005-06Hotel Tax*10%Business License*3%All others19%Franchise*5%Property*36%Sales*27%*Five sources make up 81%$104.8 million General Fund BudgetFY 2005-06Revenues:$ 104.8 millionBudget Requests $ 96.5 millionProjected Surplus: $ 8.3 million General Fund BalanceEstimated Balance at 6/30/05$ 68.9 millionPlus: FY 06 Surplus8.3 millionLess Transfers:Golf CourseMedians Fund-21.0 million-.2 millionEstimated Balance at 6/30/06$ 56.0 million Forecast Assumptions• CPI: 2.5% to 3%• Taxable sales 4.5% to 5%• Energy prices No spikes • Development Citywide projections• Salary increases 3-4% per year• Retirement costs All included- stabilized• Position growth6-9 new per year• Other expenses CPI + population• New facilitiesPer CIP General FundRevenues and Expenditures020406080100120140160180'04'05'06'07'08'09'10'11'12'13'14'15'16RevenuesExpenditures -$15-$10-$5$0$5$10$15'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14BalancedNet Revenues over (under) ExpendituresMillionsFY 06 ForecastFY 04FY 05Forecast Comparison Major Uncertainties in the Forecast•Economy –Most economists expecting a slowdown–Effect of possible housing bubble•State Budget–$3-4 billion structural imbalance –Unknown solution State of California Budget DeficitStructural Deficit =$3-4 billion-Reflects the reliance on borrowing and other one-time savings Why is This A Concern?•Early 1990’s -$2.5 million•Fiscal year ‘04 -$1.3 million•Fiscal year ’05 -$1.8 million +•Fiscal year ’06 -$1.8 millionRevenues protected; but who knows what else may happen? Budget RequestsDavid BarnumFinance Manager Budget ProcessCouncil adopts budgetFinance Distributes Budget Manual LT reviews budgets & CM recommends to CouncilDepartments submit requests to Finance Effectively Managing Today’s Resources for Tomorrow•Maintain current service levels•No new programs unless previously identified•Limited new positions•A balanced budget and long-term plan for staying in balance Budget Overview••Proposed Budget $156.5 millionProposed Budget $156.5 millionTotal Workforce•659 full time•147.47 FTE hourly13 New Positions Budget OverviewNew PositionsAviara2.00Hidden Canyon 0.75Pine1.25Recycled Water 2.00New Facilities6.00Public Safety3.00PT to FT Conversion4.00Total New Positions 13.00New Positions 2005-06Full Time Special Revenue6%Enterprise22%Internal Service8%Redevelopment1%General fund62%Total Budget = $156.5 millionOperating Budget General Fund BudgetIn MillionsTotal $90.5+ 10%Equipment+ 1%M & O$64.0$58.7$25.8$26.0$5.9$6.5$0$20$40$60$80$100+ 9%PersonnelTotal $96.5FY05FY06 General FundCommunity ServicesContingencyNon DepartmentalPublic WorksCommunity DevelopmentPublic SafetyAdmin SvcsPolicy/ LeadershipTotal Budget = $96.5 million Public SafetyPolice Chief – Tom Zoll CAD Project Update•Newly installed computer-aided dispatch system •Police car “mobile office” in progress Community Policing•Increases community policing officers from 2 to 4.•Focus on communication, collaboration, and problem-solving•Cost–$190,800 ongoing–$71,200 one-time Crime Analyst•Provide information to patrol and investigations to increase effectiveness.•More efficient use of data from CAD, ARJIS, GIS, and other sources.•Cost–$80,600 ongoing–$1,500 one-time School Crossing Guards•Conversion from contracted service to 3.4 FTE part-time employees•21 locations•Previous cost $128,000 •In-house cost $90,000 Fire Chief - Kevin CrawfordPublic Safety Fire Regional Efforts Videoconferencing Project•Connects 10 North County fire agencies through 51 fire station sites over 340 square miles•Used for both routine training and large scale emergencies –Improved emergency response times / standardized training–Enhanced coordination, monitoring and deployment of resources during large scale incidents Fire Regional EffortsNorth County Study•Basis for Carlsbad Fire Department Strategic Business Plan•Identify potential service enhancements and cost efficiencies through partnerships in North County Top Quality ServiceJim ElliottAdministrative Services Director Volunteer ProgramEnhance the volunteer experience Volunteer Program•Take it to the Internet:–MyVolunteerPage.com/Carlsbad–Non-profits may seek volunteers–City volunteer positions–Outreach campaign:•How to find local volunteer opportunities •Citywide commitment to Volunteerism–Enhance internal use of volunteers•Supports Community Sustainability! Volunteer Program•The Citywide Volunteer Database –Eliminate duplication–Increase efficiency–Search for specific skill set –Total of 165 volunteer positions•Success!–June 2004 – 646 Active volunteers–June 2005 – 1,064 active volunteers (in 165 positions ~ $5 million value)–65% increase! Cable TV FranchiseChallenges:–Adelphia bankruptcy process–Rigas family criminal trial–Current Cable Franchise expires – November 2006 Cable TV Franchise•Goals:–Top Quality cable TV service to the community–Fiscal sustainability: $1 million annual cable TV franchise revenue–Protect City’s interests in the bankruptcy and criminal court processes–Complete the refranchise process by Nov. 2006 Business Improvement District•Carlsbad Tourism:–3,583 hotel rooms–Second to City of San Diego•Business Improvement District (BID) –Carlsbad ConVis and Chamber have proposed the formation of a BID –State law allows Council to form a BID to fund tourism promotion Business Improvement District•Work with ConVis and Chamber to propose a BID to the Council that:–Meets the needs of the Tourism Industry–Meets the needs of the City Council and community Citywide Communication Strategic Plan5055606570758085909510020002001200220032004CommunicationConfidenceBenchmarkCommunication = Confidence Citywide Communication Strategic Plan•Strategic plan -Coordinate and streamline City resources•Key messages and issues•Marketing plans•Develop partnerships and alliances with the community Community DevelopmentSandra HolderCommunity Development Director •Goal: Create an on-going communication plan to disseminate CCPS information•Hold CCPS2 Event in the Fall 2005Community Engagement Program (CCPS) Development Review Process AuditCustomer Service; Responsiveness; Follow-up; ConsistencyOptimalProcessPerformanceMission, Goals and ObjectivesPolicies and ProceduresService to Business and Development CommunitiesPerformance Measures: Efficiency, Effectiveness and QualityManagement Structure and LeadershipStaffing, Supervision, and TrainingTools and TechnologyWorkload Distribution New Customer Service Initiative Goal¾Conduct S.W.O.T. Analysis/Stakeholder Meetings¾Design Enhanced Customer Service Program OUTCOME:Create a “Client Centered” Customer Service Program Rental Assistance Program•Funding reduction of approx. $408,000 total requires reductions in monthly housing assistance payments:–Reduce Payment Subsidy Amounts–Increase minimum rent payment to $50–No 2ndbedroom for medical equipment–Reduce program size by attrition Community ServicesLibraryCliff LangeLibrary Director Carlsbad City LibraryBalanced Scorecard Customer PerspectiveCustomerSatisfactionMeet CustomerNeedsImproveProductivityInternal Processes PerspectiveServices & Resources PerspectiveHave DesiredMaterialsAvailableKeepCollectionResourcesFreshCompetentStaffRightAttitudeOrganizational Readiness PerspectiveFinancial SupportFrom the CityFinancialSupport from theCommunityFinancial PerspectiveDemonstrate ValueShow High Levelsof CustomerSatisfactionPublic ValueDeliver DesiredServicesBestPractices &InnovationsRight Tools& Facilities NewRevenueSourcesSTRATEGY MAP Marketplace Approach to Library Services• Update and create a consistent image, message and identity• Empower the customer• Service Reorganization• Customer Driven Service Delivery• Harness Technology Cultural Arts Office• TGIF Jazz in the Parks• The William D. Cannon Art Gallery•Three-Part-Art Other on-going programs• Community Arts Grants• San Diego Opera Preview Lecture Series• The Sculpture Garden• Family Programs & Festivals• Sister Cities programs• Art in Public Places Community Services RecreationKen PriceRecreation Director ÃAviara Aviara Community ParkCommunity ParkÃHidden Canyon Hidden Canyon ParkParkPine Avenue Pine Avenue ParkParkÃPark Projectsnorth Annual Cost: $350,000 Annual Cost: $100,000 Annual Cost: $140,000 Creating Community through People, Parks and ProgramsCreating Community through People, Parks and Programs T.R.U.S.T. Program••Improvement in Sportsmanship:Improvement in Sportsmanship:––Adult Sports 25% IncreaseAdult Sports 25% Increase––Youth Sports 84% IncreaseYouth Sports 84% Increase••Technical Fouls Decrease:Technical Fouls Decrease:2001200120052005––Adult Sports 46 17 Adult Sports 46 17 ––Youth Sports 43 8 Youth Sports 43 8 Public WorksLloyd HubbsPublic Works Director Maintenance Assessment Program(MAP)•Performance Measure•Outside Review•Determine future projects and budget requests Existing Park Site Improvements•Previous MAP Projects9Holiday Park restroom remodel9Calavera Community Center exterior siding•Current MAP project requests9Picnic table/bench replacements9Roofing repairs9Backstop repairs at Calavera Park9$223,500 requested for park site improvements in FY2006 •Enhanced Service Delivery9Parks - Maintenance Aide•Consistent Labor Force•Weekend Coverage–Litter pick-up–Restroom Maintenance•Flexibility in work schedule to meet demands of customersPart-Time to Full-Time Conversions Part-Time to Full-Time Conversions•Enhanced Service Delivery9Contract Inspection•Growing area that needs to be managed–School Pilot Program–Grounds Maintenance»24% by contract–Increase in Medians»35% by build-out9Facilities•Provide full coverage at Senior CenterPT to FT CONVERSIONSyParks: 5.76 to 3.0yFacilities: 1.83 to 1.0yNo Budget Impact Water Reliability•Sustainable Water Supplies•Goal is 90% ReliabilityfDemand in excess of 26,000 AFY90% Reliability10%21%69%Drought ConservationRecycled LocalImported Water Supply Recycled Water•Phase II Project9Construction Contractsf19 out of 21 awardedfCompletion: Summer 20069CWRF StartupfTesting- June 2005fFully operational - July 2005•New Customer Use Sites9Staff Actively Working OnfNew Development – 5 sitesfConversions – 46 sitesfRetrofits – 4 sitesyAdding 2 new positionsyPlant Operated by EncinayOperating Budget $538,600yCross Connection Control TechnicianyWater Systems Operator I Desalination Supply•Agreements Executed9County Water Authority9Poseidon Resources10%48%21%21%Drought ConservationRecycled LocalImported Water SupplyDesalinated Local Desalination•Future Desalination Activities – the next steps:9Work with CWA & Poseidon9Environmental Studies9Distribution Line Locations9Corrosion Studies9Water Quality Issues Other Funds Water Enterprise FundOtherProperty TaxWater SalesInterestEstimated Revenue = $24.0 millionBudget = $24.9 millionDepreciationPersonnelPurchased WaterOther Sanitation Enterprise FundOtherInterestService ChargesEstimated Revenue = $7.3 millionOtherDepreciationPersonnelEncinaBudget = $7.7 million ProposedSewer Rate Increase•Commercial and Residential •4 % increase for FY 05-06•Potential for future rate increases•Residential Rate •Current Rate $13.00/month•Proposed Rate $13.50/month -$2.0-$1.5-$1.0-$0.5$0.0$0.5$1.0$1.5$2.0'04 '05 '06 '07 '08 '09 '10 '11 '12Net Income (Loss)MillionsSanitation FundProjected Net Income /(Loss)Balanced -$2.0-$1.5-$1.0-$0.5$0.0$0.5$1.0$1.5$2.0'04 '05 '06 '07 '08 '09 '10 '11 '12Sanitation FundProjected Net Income /(Loss)With Future Rate IncreaseNet Income (Loss)MillionsBalanced Sewer Rate Comparison$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50City of PowayCITY OF CARLSBAD*Leucadia Wastewater Dist.*Vallecitos Water District*City of OceansideCity of Encinitas*City of Vista*City of Solana BeachBuena Sanitation District*Olivenhain Muni Water Dis t.City of Del Mar* Member of EWACity of Carlsbad* Solid Waste Enterprise FundOther Recycling FeesInterestTrash SurchargeEstimated Revenue = $2.1 millionBudget = $2.2 millionRecyclingStorm Water ProposedTrash Increase• Recommended Increase:•6% Residential• 7% Commercial • City contracts with Coast Waste for commercial and residential trash service • No increase in rates since 1997• Rates are lowest in the County• Rate study performed $0 $2 $4 $6 $8 $10 $12 $14 $16 $18PowayEscondidoOceansideEncinitasSan MarcosCoronadoDel MarEl CajonLemon GroveSolana BeachLa MesaVistaCarlsbad CurrentCarlsbad ProposedResidential TrashRate Comparison CurrentProposed$Increase%IncreaseBase Rate$13.26$14.07$0.81 6%Storm Water1.952.090.147%AB9390.270.290.026%Franchise Fee0.991.050.066%Total BillTotal Bill$16.47$16.47$17.50$17.50$1.03$1.036%6%Residential TrashMonthly Rates Special Revenue FundsBlock grantOtherSection 8Maintenance DistrictsTotal Budget = $10.1 million Risk MgmtHealth InsuranceVehicle MaintVehicle ReplWork CompInfo TechInternal Service FundsTotal Budget $13.1 million 050100150200250300FY 06OperatingGoals• Budget = $262,000– Operating $157,000– Goals $105,000• Ponto Area Land use strategy•CentreCity Gateway (partial)in thousandsSouth Carlsbad Coastal Redevelopment Area Fund 200250300350400'03 '04 '05 '06e '07e '08eSCCRAAssessed ValuationsTax BaseMillions 05001000150020002500FY 06CIPGoalsAdminDebt RepaymentTotal Budget = $2.25 millionin ThousandsVillage Redevelopment Area FundOperating $1,484,000Goals $ 50,000CIP $ 715,000 Fee Updates Ambulance Fees• Last increased Jan 2000• Currently lowest resident rates in the County• Mid point for non-resident rates• Recommended Increase –Base Rate 20%– Treat and Release 8% Resident Ambulance Rate Comparison$0 $200 $400 $600 $800 $1,000Chula VistaRamonaLakeside/Santee (CSA 69)PowayImperial BeachCarlsbadCoronadoNorth CountyBaronaViejasOceansideSan Diego MSESycuanEast County FPDEl CajonNational CitySan MarcosLa Mesa/San MiguelEscondidoVis ta Development Related Service Fees• Fee Study completed last year indicated a 25% increase in costs• Fees increased 15% last year• Additional 10% increase this year to same fees Park in Lieu Fees• Last update in 2000• Fee calculation uses two variables:– Housing Density–Land Values• Housing Density set by ordinance• Fee set by resolution (based on land value) Park in Lieu FeesQuadrant Current ProposedLand Value:NW$ 400,000 $ 977,000NE, SW, SE $ 300,000 $ 732,000Fees:NW$ 3,251 $ 7,649NE, SW, SE $ 2,436 $ 5,728 Other Fee Increases• Facility fees – minor adjustments• Agua Hedionda Lagoon permit fees – 10-30%• New Cancellation Check Processing Fee - $20• Building Permit fees – valuation factor adjustment • Development Impact fees – ENR adjustments Program Options Boys and Girls Club of Carlsbad•Established 1952•Has served over 50,000 youth and Families•Currently has 1,900 members•Two locations in Carlsbad•La Costa•Village of CarlsbadProgram Option New Club in Bressi Ranch – Open Late 2007•18,000 sq. ft. facility with a capacity to serve 300 children per day•Indoor Gym•Technology Center•Art Rooms•Cost $5,000,000Program OptionBoys and Girls Club of Carlsbad •Donation Requested•Fixtures, furnishings and equipment $325,000•Capital campaign management and marketing 175,000•General operations499,999--------------------$999,999•Any funds donated would be matched 4:1 by the Boys and Girls Club of CarlsbadProgram OptionBoys and Girls Club of Carlsbad Background on Funding of Community Requests• Community Activity Grants• Funding Outside of the Process• Community Development Block Grant (CDBG) ProgramProgram OptionBoys and Girls Club of Carlsbad 1. Direct the Boys and Girls Club to request funding through the Community Activity Grants process2. Fund the request outside of the process:a. How much would the Council like to contribute?b. Does Council want to specify what the funds can be spent on? 3. Contribute nothing at this timeProgram OptionBoys and Girls Club of CarlsbadCouncil Options Fly FriendlyBackground•The McClellan-Palomar Airport Advisory Committee & County of San Diego developing Fly Friendly•Literature to educate Homeowners and Pilots•Requesting $1,500 in matching contribution and a link for Fly Friendly on the City websiteProgram Option 1. Decline any contribution at this time, but provide a link to the Fly Friendly program on the City’s web site2. Contribute a one-time $1,500 to Fly Friendly3. Contribute a one-time payment of $1,500 to Fly Friendly and provide a link to the Fly Friendly program on the City’s web site4. Contribute $1,500 to the 05-06 budget, provide a link to the Fly Friendly website and include a similar amount in future budgets Fly FriendlyCouncil OptionsProgram Option Aerial Apparatus•Commonly known as a “Ladder Truck” or Quint1. Pump2. Water Tank3. Hose4. Complement of Ladders5. Aerial Device Ladder•1,000 structures in Carlsbad currently not accessible•Aerial Apparatus responded 160 times in previous year•Availability of aerial apparatus from surrounding cities dependent demand and locationProgram Option Financial•Approximate cost of a Quint aerial apparatus is $825,000•Replacement of a fire engine (F399), originally scheduled for replacement in FY 2004/05. •The projected annual maintenance cost of a tillered Quint aerial apparatus is approximately $6,000 more than a fire engine.Program OptionAerial Apparatus Aerial ApparatusCouncil Options1. Purchase and place in service in FY 2005-06 a 100-foot Quint costing approximately $825,000. 2. Do not purchase a Quint at this time and purchase a fire engine costing approximately $415,000 for the scheduled replacement of fire engine F399. Program Option Tourism Promotion Funding•Carlsbad Convention & Visitors Bureau–Operates visitors center–Local promotionProgram Option•SD North Convention & Visitors Bureau–Group sales program • Total Budget for FY 2004-05 $508,000• No funding in the 2005-06 budget at this time• Business Improvement District (BID) formation being discussed• Recommend: Contracts be reduced by amounts received from BID fundingProgram OptionTourism Promotion Funding Tourism PromotionCouncil OptionsFor each group:1. Contract for same amounts• CCVB $408,000• SDN $100,0002. Contract at a lesser amount3. Don’t contractProgram Option Trails MaintenanceProgram OptionCurrent Program:• ½ time maintenance worker + volunteers • $29,168• $2,333 per mileTrail Mileage:Now 12.5Adding 8.5 Total miles: 21.0 Trail MaintenanceRequest• Add 1 maintenance worker plus additional supplies and materials– Personnel cost: $59,948– Supplies/materials cost: $28,769• Result in program cost of $117,885 or $5,614 per mileProgram Option TrailsOther Considerations9HMP requires open space maintenance9New open space acquisitions requested9Open space/trails rated high by citizens9Median district is underfunded $500k loanHow to pay for all of this?¾Consider forming a special district?Program Option Trails MaintenanceCouncil OptionsProgram OptionAdd/Convert:Increase of:Total Cost per Mile:1.2.3.4.1 FT employee plus materials$88,717$5,614.5 PT to 1 FT plus materials$77,482$5,079Materials only$28,769$2,759NoneNone$2,333 Solid Waste EnhancementsProgram Option• State requires 50% diversion rate• Carlsbad fell to 48% in 2003• Request new programs to help increase the diversion rate• Sufficient funds available Solid Waste Enhancements RequestProgram OptionEventCost1.Curbside Hazardous Waste Collection$74,8002.3.Backyard Composting$22,000Special Collection Event:Household Hazardous Waste and Electronic Waste$70,000 City of Carlsbad Golf Course PREFACE In 1986 many citizens worked very hard to support and pass the City of Carlsbad’s Growth Management Plan. It was not an easy election. In1989 many of these same citizens proposed and voted for the construction of a City of Carlsbad Municipal Golf Course. It passed with a 58% plurality.Being honorable citizens they also propsed a method by which the City could pay for said golf course. The City Council , at the same time,opted not to raise the TOT tax from 8% to 10%. In good faith the citizens proposed,and secured 58% approva1,of the increase from 8% to 10%. In 2004-2005 fiscal year the 2% increase amounted to $2,000,000.Since 1989 said 2% increase produced,including interest,$l7,000,000 to the General Fund.Without the golf course the City may never have gone from8% to 10% and the City would not have collected the $1 7,000,000. SUMMARY OF RECOMMENDATIONS It is recommended that: 1. 1. The City Council provide the funds and the expertise to construct and complete the proposed golf course and the proposed swimming pool; 2. 2. The City Council should provide accurate information to the public, Le. o o The statements that The City is “giving“ $30 million to the golf course and the City is “spending”$37 million on the golf course are completely o o inaccurate. The City is only “1ending”the money not “spending” the money;if you do not build the golf cours you will not have $35 or $37 million to spend else where; 3. 3. The City Council should provide a more ”open book policy where they provide detailed financial information; 4. 4. Financing the golf course through the use of an “enterprise fund’khould be given wide public exposure which would include a thorough description of “enterprise funds” and how they work;failure to do so gives a false impression of the project; 5. 5. The financial structure of the golf course should allow for enough revenue to provim funds to maintain and operate the golf course as well as cover the short fall in maintenance and operation of the swimming pool;THE CITY OF OCEANSIDE EARNS $700,000 PER YEAR; YOUR FINANCIAL CONSULTANTS SHOW,WITHOUT DEBT SERVICE AN EXCESS OF $1 MILLI0N;OCEANSIDE HAS THE LOWEST FEES IN THE COUNTY AND HUGE VOLUME OF PLAY 6. 6. The sale of excess real estate created by the golf course design should be utilized to reduce any debt (other than general fund advances), and must pay for the construction of the golf course; 7. 7. The City Council should advance $20 million to the golf course “enterprise fund” for construction; o o It has been stated by the mayor on numerous occassions and by City Council members that in 1988 $7 million was an acceptable number to build the golf course. If so, that same $7 million in today’s market is worth $17 million and this would be a great start to dedicate to the project without it being “too much” ;. 8. 8. That the General Fund advance $20 million to be repaid by the “enterprise fund” starting in 2017 or 10 years after the opening of the golf course; 9. 9. There is the potential that the golf course revenue could repay part of the general fund loan earlier, but will require monitoring; 10. 10. Fees for the golf course should be structured to meet market forces while giving reduced fees to Carlsbad residents and students. 11. 11. With $580 million available for capital improvements in the City of Carlsbad, it does not seem unrealistic that $20 million be set aside to create a cash benefit resource to the citizens. 12 consideration should be given to construction of the clubhouse and driving range as first phase to earn some revenue while the course is being constructed; 13 The course and the especially the Clubhouse should be promoted as a social focul point of the city; 14 It is obvious that the citizens who voted for this project did not in any way contrbute to the 16 Or 17 year delay; 15 The city currently spends $750,00 for Hosp Grove ($16 mil1ion)and that “advisory” vote passed by 21 votes; If we continue to wait to resolve each and every objection prior to thinking in a forward manner working through issues, projects will never be accomplished. It is time to move ahead with this project .The citizens agreed by their vote that it was a positive for the city. John Mamaux 1393 Basswood Ave Carlsbad,Ca (760) 729 5648