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HomeMy WebLinkAbout2005-06-21; City Council; 18176; 2005-06 Operating & CIP Budgets and Fee RevisionsAB# 18,176 ADOPTION OF THE 2005-06 OPERATING AND MTG. 06/21/05 DEPT. FIN CHARGES FOR SERVICES CAPITAL IMPROVEMENT PROGRAM BUDGETS AND REVISION OF FEES AND RECOMMENDED ACTION: DEPT. HD. CITY ATTY. ye- CITY MGRZ 1. Hold a public hearing on the City of Carlsbad's, Carlsbad Municipal Water District's, and Housing and Redevelopment Commission's 2005-06 Operating Budget, and 2005-06 to Buildout Capital Improvement Program . 2. Adopt Resolutions No. 2005-196 , 1247 , and 399 , adopting the final Operating Budgets for 2005-06, and appropriating funds for the 2005-06 Capital Improvement Program, and approving a net reduction to and appropriation transfers between Encina projects in the current fiscal year. (Subject to any actions taken tonight) 3. Adopt Resolution No. 2005-197 , adopting the Gann spending limit for the City of Carlsbad for 2005-06. - 4. Adopt Resolution No. 2005-198 , adopting changes to the Master Fee schedule. ITEM EXPLANATION: The proposed 2005-06 Budget totals $244.4 million, of which $156.7 million is the Operating Budget and $87.7 million is the Capital Improvement Budget. Operating revenues total $162.4 million and Capital revenues total $1 17.7 million, for a total of $280.1 million. The Operating Budget provides the funding for all operations of the City including police and fire services, library operations, utility services, affordable housing programs, recreation programming, park and street maintenance, and many others. The Capital Improvement Program outlines the financing plans for all of the City's major construction projects including civic facilities, roads, water and sewer lines, as well as all the other infrastructure needs. The following is a brief summary of the proposed budgets. More information can be found in the overviews of the Operating Budget and the Capital Improvement Program in Exhibits 1 and 2. ODerating Budget The proposed Operating Budget for 2005-06 totals $156.7 million, an increase of $9.1 million from the 2004-05 adopted budget. Operating revenues are estimated at $162.4 million, which is an $8.2 million increase over the current year projections. General Fund Revenues General fund revenues for 2005-06 are estimated at $104.8 million, 2.7% higher than the current year's projections, with most of the increase coming from the tax revenues. Property taxes, the City's largest single revenue source, 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. Property taxes for fiscal year 2005-06 are based on property values as of January 1,2005. Sales taxes are expected to grow by 8%, to $28.7 million for 2005-06. The increases in sales taxes reflect steady consumer spending as well as continued growth in several of the City's shopping centers. Transient occupancy taxes will reach approximately $1 0.3 million, an increase of 5%. PAGE 2 OF AGENDA BILL NO. 18,176 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. General Fund Expenditures The increases in the General and other fund revenues enable 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. 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 full and three-quarter time employees and 147.47 hourly. Some of the new services in the 2005-06 budget are highlighted below: New Facilities - Three new parks are planned to open in 2005-06: Aviara, Hidden Canyon and Pine. As the City completes these projects, the costs of maintaining and operating the facilities are added to the Operating Budget. 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. Public Safety - The Police department is enhancing its community-oriented policing program. 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. A Crime Analyst will also be added 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 with reduced costs. 0 Customer Service - One of Council’s goals is top-quality service, which means serving our customers well. There are several customer service initiatives in the budget this year. The Library’s marketplace service approach and the Development Process Review (DPR) are two examples of customer service initiatives. The DPR will analyze the Community Development department with the goal of making it more efficient and user-friendly to the citizens. Increased 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 positions. The full-time employees will experience less turn-over and will receive the required training to provide a more consistent level of year-round coverage in maintaining existing parks and facilities. A Business Improvement District (BID) may be created to pay for tourism promotion services, thus, 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 number and types of vehicles being a PAGE 3 OF AGENDA BILL NO. 18,176 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. The Operating Budget also includes a $4.3 million transfer to the Infrastructure Replacement fund to provide funding for infrastructure replacement as needed. The Council’s contingency account is proposed at $2.3 million, which is approximately 2.5% of budget requests. This account is available to the City Council to address unanticipated emergencies or unforeseen program needs. Lastly, $796,000 of capital outlay requests has been included in the proposed General fund budget. Changes to the Operatina Budget The following change has been made to the Operating budget schedules since the Council Workshop on June 7,2005. ERAF Ill requires, cities, counties and special districts to pay a set amount of money to the State (through the ERAF fund) in fiscal years 2004-05 and 2005-06. For Carlsbad, the amounts are $1.8 million from the General fund and $219,285 from the Redevelopment agency for each of those two years. The City’s share will be withheld by the County from property tax receipts. The agency’s share is to be remitted to the County by May IOth of each year; thus, an appropriation is needed for the Redevelopment payment. The payment is split between the redevelopment areas based on estimated tax increment. The amounts are $202,778 from the Village area and $16,507 from the South Carlsbad Coastal area. These amounts have been included in the final budgets amounts shown in the Exhibits. . Capital Improve men t Program The 2005-06 to Buildout Capital Improvement Program (CIP) outlines approximately 154 future projects at a total cost of $445.4 million. Appropriations scheduled for 2005-06 total $87.7 million and will be added to approximately $1 39.4 million for ongoing capital projects that remain unspent at the end of fiscal year 2004-05, for a total appropriation of $227.1 million. Revenues for the CIP are projected at $1 17.7 million. A large increase in the cost of construction materials has occurred over the past 2 years pushing up the cost of all City projects. With the exception of one funding source, there are sufficient revenues projected to build the projects listed in the CIP. However, the recent cost escalation has increased the projected shortfall in the Public Facilities Fees (PFF) at build out, from the $1.5 million projected last year to $4.8 million this year. While this is not an immediate problem, it is an indication that the City may not have the money to build all of the projects listed under the PFF program. Building Cost Index Several changes were required in this year’s CIP to keep the PFF deficit from increasing further. The recommended changes, as reflected in the accompanying documents, include: Move the Hosp Grove/Buena Vista Lagoon project to the unfunded list. This action will free up $1.3 million of Park-in-Lieu funds that can be used towards the Pine Park community center; Move the Cannon Lake Park project to the unfunded project list. This relieves the PFF fund of $2.1 million in obligations; Use all undesignated Park-in-Lieu funds (a total of $4.1 million) as a funding source for park projects rather than using PFF as originally planned; Move the estimated construction date for Aviara Park community center out into the 2015 to build-out time frame. These changes allow the PFF fund to remain balanced until sometime after 2015. During this time 0 0 0 3 PAGE 4 OF AGENDA BILL NO. 18,176 an evaluation of the remaining projects in this program can occur, and Council will have an opportunity to revise future construction plans of PFF-funded projects and/or obtain additional funding. Park projects programmed for funding in the upcoming year include the Carlsbad Municipal Golf Course, and the Alga Norte Aquatic Complex. Funding is provided for the relocation of Fire Station No. 6, planning of trails at Lake Calavera, the expansion of the Senior Center, the remodel of the Library Learning Center to allow the Adult Learning and Centro de Informacion to operate in a permanent location, design funding for a Public Works Center and construction of the Coastal Rail Trail. Other projects include the expansion of the Encina Wastewater Treatment Plant and construction of the Vista Carlsbad and North Agua Hedionda sewer interceptors. Water projects receiving appropriations include the replacement of water pipelines in San Marcos Boulevard towards the west from Rancho Santa Fe Road and construction of 4,400 feet of 12-inch watermain in Cannon Road East of El Camino Real. Street projects receiving appropriations in 2005-06 include College Blvd Reach A and Cannon Reach 4A as well as El Camino Real and Faraday Avenue. In addition, next year’s Capital Improvement Program includes $3.2 million in funding for street overlay projects. There are several projects identified in the CIP for which there is no identifiable funding source. The City will investigate obtaining possible outside funding such as federal and State grants, loans, or other financing sources. These projects are: El Camino Real Widening from Cassia Road to Camino Vida Roble Palomar Airport Road Widening and Bridge Reconstruction Poinsettia Lane - Read “E” Cannon Road - Reach 4 - College to City Limits Cannon Lake Park (6.7 Acres) Hosp Grove/Buena Vista Lagoon Improvement In addition to the aforementioned recommended budget for the 2005/06 fiscal year, staff is requesting approval to make adjustments to the current year (2004/05) appropriations of Encina Wastewater Facility (Encina) projects to reflect changes in appropriations to those projects approved by the Encina Wastewater Authority (EWA) board and staff. The changes amount to a net decrease to the 2004/05 appropriations of $564,417 as shown below: Encina Building Improvements Encina Capital and Staffing Encina Flow Equalization Encina Phase V Expansion Total Budget Decrease $ 1,287,442 (315,381) 1 19,020 11,655498) $ 1564.417) Staff is also requesting that the City Manager be authorized to transfer appropriations between budgets and/or projects at Encina as approved by the EWA Board staff (up to $25,000) or EWD Board in amounts up to $1,000,000. Any transfers in excess of that amount will be brought back to the City Council for authorization. In addition, any increases to the total budget for EWA will require the City Council’s approval. This authority is contained in the attached resolution. Changes to the Capital Improvement Program The following changes have been made to the Capital Improvement Program since the CIP Workshop on May 17, 2005. None of the changes reflected below change the budget amount being requested for FY 20052006 1. Some of the related Encina Water Pollution Control Facility line items were consolidated for ease in accounting. 4 PAGE 5 OF AGENDA BILL NO. 18,176 2. Revenue numbers were updated between the Operating and Capital Funds for the Recycled Water Facility. The net revenues were unchanged. 3. TDA revenues were reduced by $150,000 to better reflect anticipated receipt. 4. The current year expenditure and carry forward amounts have been updated to reflect more current information. The net result of these changes is a change in the anticipated carryforward amount from $140.2 million to $1 39.4 million (a decrease of $850,000). Gann Limit In addition to adopting the Operating Budget, the City Council is asked to adopt the Gann Spending Limit as required by Article XlllB of the California Constitution. The Gann Limit creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The revenues, which are subject to this limitation, are those considered “proceeds of taxes.” The basis for calculating the Gann Limit began in fiscal year 1978-79, and is increased based on population growth and inflation. The City’s spending limit for 2005-06 is $1 53.9 million, with appropriations of “proceeds of taxes” of $87.1 million. Fees for Citv 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 to the following fees: 0 Various adjustments to facility fees 0 Agua Hedionda Lagoon Permit fees Ambulance fees 0 Solid Waste (trash) Service fees 0 Sewer rates 0 Development related service fees 0 Building Permit and plan check fees 0 Addition of a cancellation check processing fee 0 Park in Lieu fees 0 Development Impact fees and other fees that are increased annually based upon an index as stated in the resolutions or ordinances establishing the fees The revisions to these fees are shown in Exhibit 7. ENVIRONMENTAL AND CONSISTENCY REVIEW: In accordance with Government Code, all projects that receive appropriation of funds for fiscal year 2005-06 received a finding of General Plan Consistency by the Planning Commission at their meeting on May 4, 2005. There are no foreseeable adverse environmental impacts and the individual projects will receive additional CEQA review upon approval. FISCAL IMPACT: The fiscal impact of the proposed budgets is detailed in the attached schedules. EXHIBITS: 1. 2005-06 Preliminary Operating Budget overview. 2. 2005-06 Preliminary Capital Improvement Program overview. PAGE 6 OF AGENDA BILL NO. 18,176 3. 4. 5. 6. 7. Resolution No. 2005-196 of the City Council of the City of Carlsbad, California, adopting the Final Operating Budget and Capital Improvement Program for fiscal year 2005-06 for the City of Carlsbad and establishing controls on changes in appropriations for the various funds, and approving a net reduction to and appropriation transfers between Encina projects in the current fiscal year. Resolution No. 1247 of the Board of Directors of the Carlsbad Municipal Water District, California, adopting the water district final Operating Budget and Capital Improvement Program for 2005-06. Resolution No. 399 of the Housing and Redevelopment Commission of the City of Carlsbad, California, approving the Operating Budget of the Redevelopment Agency and Housing Authority for fiscal year 200506. Resolution No. 2005-197 of the City Council of the City of Carlsbad, California, establishing the 2005-06 appropriation limit as required by Article XlllB of the California State Constitution and State law. Resolution No. 2005-198 of the City Council of the City of Carlsbad, California, adopting changes to the Master Fee Schedule. The Preliminary Operating Budget and Capital Improvement Program 2005-06 is on file with the City Clerk. The Technical Appendix is available for review in the Finance and Engineering Departments. Master Fee Schedules are on file with the City Clerk. DEPARTMENT CONTACT: David Barnum/Lisa Hildabrand; 760-602-2430; dbarn@ci.carlsbad.ca.us or Ihild@ci.carlsbad.ca.us CITY OF CARLSBAD 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 Street construction and maintenance 0 Water delivery system Library and Arts programs Sewer system 0 Recreation programming for all ages 0 Solid waste services Park lands 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 &fanagemen2 - An environmentally sensitive community b) 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 suppo~l 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 01 open space and recreational facilities that actively address citizen needs which arc fiscally responsible, and are consistent with the General Plan and Growth Managemen! Standards. Top Quality Services - A city that provides exceptional services on a daily basis. Transportation / Circulation - Provide and support a safe and efficieni 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. 7 Exhibit 1 The US economy has experienced steady growth over the past several 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. Quarter-to-Quarter Growth in Real GDP 0 ECONOMIC PROFILE contributors to the increase in real I Re& GCP pm& 19 mcaod af seuscrrol,l,u@uUIited onrtua‘ra:cs 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 maior 0 -2 I1 KIIV I I IIIR’I n NIN 2001 2002 2003 11111 I II UI rv I 2004 2005 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. 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, cckumer 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 Dieqo Countv 2001-2005 I =. 8. I e, li si & rk'. F-- v e. I. $6.4 .. * * I - ,/ --. I f? -* *- 9 s ,.; ............... k, ......... #' ............... { ----.v*5 I ~ ,> .., ............................... , , 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 b\ 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 II n I $800,000 $600,000 $400,000 $200,000 $0 2000 2001 2002 2003 2004 I1 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 commerciaVindustria1 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. General Fund Revenues $100 $80 $60 $40 $20 $0 96 97 98 99 00 01 02 03 04 05e 06e II Carlsbad’s current economic 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 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 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 get its budget in balance. 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 few months. The LAO’S report states that while the Governor’s budget proposal for 2005-06 would balance the budget for the next two years, a $3 to 4 billion shortfall will still exist in future years. The ongoing budget shortfalls result from the high reliance in the near term on one-time savings and loans that will need to be repaid in the future. The State has balanced its budget by taking city money in the past and the risk is that they may find a way to make it happen again. LAO Forecast for State of California Structural Shortfall Remainsa Figure 11 Revawes and Expndrhrres Unoler May Rsvisron (In Biltims) $ria 106 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: 0 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. 0 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. 0 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. Revenues over Expenditures 180 -- 160 140 120 100 80 60 40 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 II I The forecast assumes 15% increases in health care costs in the near future, slowing to 5% in the future. It also assumes personnel growth (new positions) to remain rather flat at no more than 2% per year. Cost of living increases between 3 and 5% have been added to personnel costs. Pension plan costs are anticipated to remain essentially at current levels. And finally, it includes 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. 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. Millions Forecast Comparison $15 $0 -010 - -$15 '04 '05 '06 '07 'OS '09 '10 '11 '12 '13 '14 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 PRELIMlNARY 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. (in Millions) I PROJECTED I ESTIMATED I 0% SPECIAL REVENUE ENTERPRISE Revenue estimates for the Operating budget indicate that the City will receive a total of $162.4 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. SIGNIFICANT GENERAL FUND REVENUES I II 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 99.5 ESTIMATED 2005-06 3.2 5.7 14.3 ~ $ % CHANGE CHANGE $ 9.2 33% 0.5 5% .2 7% (1.1) (16%) (5.2) (27%) 2.1 8% (0.4) (7%) 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” nilbon’s + Property Taxes , 135 - f $30 - +Sales Taxes 125 7 -- I so J 08 87 SS gS W 01 02 03 04 OT OB0 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 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 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 Million‘s $12 Transient Occupancy Taxes 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. terrorism attacks and the mild recession that followed. Compounding the decline for 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 YO of the City’s sales tax base. 01 02 03 04 05e 06e Fiscal Year 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. rebounded causing TOT revenues to rise. 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 complete in 2004-05 and tourism has 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). SDG&E pays franchise taxes for the use of the public land over which they transport gas and electricity. The City also receives an “in-lieu” franchise tax based on the value of gas and electricity transported on SDG&E lines but purchased from another source. The “in- lieu” tax captures the franchise taxes on gas and electricity that is transported using public lands but which would not otherwise be included in the calculations for franchise taxes due to deregulation of the power industry. The majority of the II SDGE Franchise Taxes ll $6 $5 $4 $3 $2 $1 $0 01 02 03 04 05 06e Exhibit 1 “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 FYOI 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 include planning, engineering and building permits, and fees Development Revenues and Permits Issued Year over Year Percentage Change ::[;;:;;;; $0 Fiscalyear 98 99 2,000 01 02 03 04 05e 1- Revenues --c Residential Permits Issued 1 2,500 2,000 1500 .g s 1000 a“ 500 0 paid by developers to cover the cost of reviewing and monitoring development activities such as plan checks and inspections. These revenues are difficult to predict, as many of the planning and engineering activities occur months or years before any structures are actually built. Development-related revenues declined slowly from the high of 1998, but have picked up in the last few years as several large master-planned projects were developed. bringing down the revenue as well. A 15% decline is projected for next year. For fiscal year 2005-06, permits issued are expected to decline- slightly 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 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); 0 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 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 are due to budgeting only for the current year assessments whereas the prior year revenues include the collection of delinquent assessments. 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 Del Mar /I Olivenhain Municipal Water District Buena Sanitation District' Cityof Solana Beach City of Vista' City of Encinitas" City of Oceanside Vallecitos Water District' Leucadia Wastewater District' Cityof Carlsbad' *Member of Encina Wastewater Authority $a $20 $30 $ 40 $ 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 given to the contractor since 1997. The increase requested for the Current ProDosed Increase Increase storm water program is 14 cents per $14.07 $0.81 6.1% household for a total monthly cost of Storm Water 0.14 7.2% I $2.09. With these increases the effect on most residential bills will be AB939 0.27 0.28 a total increase of 6% as shown in Franchise Fee 0.06 6.1% 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 construct ion 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 $156.7 million, which represents an increase of $9.1 million, or 6.2%, from the adopted 2004-05 budget. The changes in each of the City’s programs will be discussed fully below. Exhibit 1 Budqetaw 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 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. Budcaeted Expenditures Through the application of these guidelines and policies, the 2005-06 Operating Budget of $156.7 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 projects, the costs of maintaining operating the facilities are added to the Operating Three new pa planned to open in Hidden Canyon and Pine. 2005-06: 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 Development Process Review (DPR) 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 staff 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. Budaet 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 BY EXPENDITURE TYPE 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 in retirement costs. The City is part of the Public Employees Retirement System (PERS). PERS rates have the implementation of enhanced benefits as well as the effect of investment losses increased due to BUDGET BUDGET 2004-05 2005-06 4,593 4,590 8,646 1 1,842 1,709 1,894 1,369 1 1,196 $ 58.725 I $ 64.045 $ CHANGE CHANGE 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: $4.2 million to the Infrastructure Replacement fund - for major maintenance and replacement of City infrastructure. It is based on total revenues and increased by $420,000 for fiscal year 2005-06. 0 $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 $800,000 to the CIP to fund synthetic turf fields. Exhibit 1 Another way of looking at the General fund budget is by program. The chart below compares the recommended 2005-06 budget to the amounts adopted in the previous year. The significant changes are noted below. GENERAL FUND EXPENDITURES II 6.0 33.1 6.3 14.8 16.9 7.4 2.3 FUND POLICY/LEADERSH IP ADMINISTRATIVE SERVICES PUBLIC SAFETY COMMUNITY DEVELOPMENT COM MU NlTY SERVICES PUBLIC WORKS CONTINGENCY TOTAL NON-DEPARTMENTAL 6.4 35.5 6.6 15.8 18.8 7 .O 2.3 BY MAJOR SERVICE AREA II (In Millions) BUDGET I BUDGET 2004-05 I 2005-06 !§ 3.7 I !$ 4.1 $ 90.5 I $ 96.5 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. 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 a1 Exhibit 1 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 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, Exhibit 1 all of the claims from the self-insured plan have been settled and this budget only includes dental, vision and life insurance costs. The Vehicle Replacement fund budget varies from year to year depending on the need for replacements. 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. 0 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 essentially remained at the same levels in 2005-06. 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. Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM OVERVIEW The City of Carlsbad Preliminary Capital Improvement Program (CIP) is a planning document that outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures. The CIP is a financial planning document, not a commitment for spending. Spending authorization is given only at the time the City Council formally adopts the proposed budget, and, at that time, funds are only appropriated for the following fiscal year. The information shown in subsequent years is to provide the most comprehensive snapshot of all the known future facilities the City of Carlsbad plans to construct. The 2005-2006 Preliminary Capital Improvement Program outlines $87.7 million in new appropriations to provide additional funding for the continuation of existing projects as well as funding for new projects. Projected revenues during the fiscal year are estimated at $117.7 million. Revenues are collected as building permits are issued, and as the need for facilities arises, the money is used to fund the new facilities. As the City continues to grow and develop, there is a corresponding increase in the demand for development-related services and new facilities. To ensure that the necessary infrastructure and facilities are built on a schedule that meets or exceeds this demand, the citizens of Carlsbad adopted a Growth Management Plan in 1986. The Growth Management Plan states that unless a standard level of facilities is available to meet new demands resulting from the City’s growth, development cannot proceed. This Plan is the foundation for making decisions about the timing and prioritization of the capital projects under consideration. A discussion of the City’s Growth Management Plan is located at the end of this report. The remainder of the report explains the process and the results of the City’s plans for its capital facilities. With the exception of one funding source, there are sufficient revenues projected to build the projects listed in the CIP. A large increase in the cost of construction materials has occurred over the past 2 years pushing up the cost of all of the City’s projects. This cost escalation has raised the projected shortfall in the Public Facilities Fees (PFF) at build out of the City from the $1.5 million projected last year to $4.8 million this year. While this is not an immediate problem, it is an indication that the City may not have the money to build all of the projects listed under the PFF program. Several changes were required in this year’s CIP to keep the deficit in PFF from increasing any further. The recommended changes, as reflected in the accompanying documents, include: Move the Hosp GroveIBuena Vista Lagoon improvements project to the unfunded list. This action will free up $1.3 million of Park-in-Lieu funds that can be used towards the Pine Street Park community center; Move the Cannon Lake Park project to the unfunded project list. This relieves the PFF fund of $2.2 million in obligations; Use all undesignated Park-in-Lieu funds (a total of $4.1 million) as a funding source for park projects rather than using PFF as originally planned; Move the estimated construction date for Aviara Park community center out into the 2015 to build-out time frame. These changes allow the PFF fund to remain balanced until sometime after 2015. It is important to remember that the projections attempt to estimate revenues for over 15 years into the future. The actual revenues may be more or less depending on many factors including the rate of development, building valuations, interest rates and construction costs. The $4.8 million deficit represents approximately 10% of all the future PFF revenue to be collected. If the projections are accurate, it means that the City may have to either cut back on the proposed projects or find alternative funding sources for the projects. Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM Despite the changes in the Parks programs, it is still anticipated that the City will meet all of its growth management standards. This reflects the Council’s continued commitment to construct the facilities as needed to serve the current and anticipated development occurring throughout the City. PROJECT EVALUATION What is the definition of a CIP project? Projects that are shown in the CIP are generally defined as any construction (or reconstruction/replacement) of major infrastructure such as streets, libraries, parks, fire stations and administrative facilities, water, sewer and drainage facilities, and other fac es that are located on or in the ground. In most cases, the total construction cost of each of these assets is recorded and tracked as part of the City’s inventory of capital infrastructure assets and other City-owned property. In addition to prioritizing projects based on growth management, projects are continuously evaluated and prioritized to ensure the City will have the funds to operate the facilities as well as construct them. Thus, the CIP and the Operating Budget are integral parts of the total City financing plan. Projects are reviewed on an annual basis by a staff Review Committee and subsequently by the City’s executive management and City Council. The Review Committee begins the process by determining the need of a project based on the following criteria: ty’s Growth Management If the project meets the criteria listed above, then it is subject to additional review including an analysis of engineering cost estimates, a review of the funding availability, the overall timing of project, and the availability of City resources. Due to the recent volatility in construction costs, all capital projects costs were updated to reflect the latest increases in materials costs. I 1 ~~~ .~~ ~ This was done through either a detailed review of the cost components, or, in cases where the project is only in its conceptual stages, by increasing the total cost by the Engineering News Record (ENR) index. As seen in the chart, building cost increases have risen over the past several years with a 3.2% increase in 2003 and a 9.7% increase in 2004. The ENR is forecasting that annual inflation for building costs will dip back to 3.5% in 2005, although the cost of certain materials may grow higher. Engineering News Record Annual Building Percentage Increases 12.0% - 10.0% - - . - - 8.0% rn 0.0% Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM CAPITAL PROJECTS The following two sections provide information about the major capital projects. The first section focuses on projects planned in the next five years, and the second section contains an overview of the entire expenditure plan through buildout of the City. THE NEXT FIVE YEARS ... PARK PROJECTS The City has planned a number of park projects over the next 5 years which will enhance the recreational opportunities for Carlsbad's residents and allow the City to meet the standards for park acreage as set forth in the growth management plan. Some of the more significant projects are listed below. 0 Alga Norte Park and Aquatic Center - This park site consists of 30 acres in the Southeast Quadrant with planned amenities that include ball fields, soccer fields, picnic areas, tot lots, a skate park, a dog park, restrooms and parking facilities, and an aquatic center. The aquatic center will include a 50-meter competition pool, a 12-lane instructional pool and a therapy pool as well as a water play area complete with a lazy river and 2 water slides. A swimming pool complex was one of the projects approved by the voters through Proposition C in 2002. Construction is scheduled to begin in Fiscal Year 05-06. The park is expected to cost $12.6 million and the aquatic center is estimated at $17.9 million. 0 Carlsbad Municipal Golf Course - The City has plans to construct an 18-hole championship golf course on property located north of Palomar Airport Road along College Boulevard. Formal grading is expected to begin in September 2005. The targeted opening is Spring 2007. An additional $36.8 million is appropriated in this year's CIP for the construction of the course that includes a 26,000 square foot clubhouse. 0 Senior Center Expansion - The 1'' floor area of the existing Senior Center will be remodeled to include additional amenities for the senior community. These may include items such as an exercise rooms, art room, TV room, multi-purpose room, game room, health screening room and a computer room. The Znd floor will be remodeled to house City offices. The estimated cost for the renovation is just under $1 million. 0 Pine Park Communitv Center - Plans are to construct a 20,000 square foot community facility/gymnasium. The facility will include basketball, volleyball, gymnastics, multi-purpose rooms, meeting rooms, a teen center and office space. Design of this $7.6 million facility is expected to begin in the 2008-09 fiscal year. 0 Poinsettia Park Community Center - Phase II of this 42-acre park includes amenities such as a community facility/gymnasium, enclosed soccer field, tot lot, picnic areas, tennis complex including a clubhouse and stadium court and additional parking. The cost is expected to be approximately $1 I .6 million and will begin design in fiscal year 2009-1 0. 0 Lake Calavera Trails Construction - Funds for the construction of a public multi-use, recreational trail system are planned on property located at Lake Calavera in the northeast quadrant of the City. The project expects to use volunteers to construct approximately 2.5 miles of the proposed 5 miles of trails. Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM CIVIC FACILITIES Civic facilities include a variety of facilities from which the City can offer its services to the public. Many of these are still in the preliminary design stage and will be further defined over the next year or two. 0 Civic Center - Preliminary planning for a Civic Center has begun. The Civic Center will consolidate City administrative operations and facilities into a more centralized location. It also may include a variety of other services and recreational opportunities for citizens and visitors. Council, citizens and members of the business community have been participating in a visioning process to determine what the needs are - for the citizens and for the City as an organization. Once the process is complete, a site will be chosen, and design and construction can begin. 0 Public Works Center - The project is for the construction of the Public Works Center and associated improvements. It includes offices, shops, a yard, warehouse and parking to accommodate the Public Works department. Initial estimates put the cost at approximately $22 million. 0 Safety Traininq Center - With the construction of the City‘s municipal golf course in the next year, it is necessary to relocate the Police department’s shooting range, which is currently located on the golf course property. In addition, there is a need for specialized training facilities for other public safety purposes. This project was authorized under Proposition C, which was approved in 2002. Preliminary design work is underway. The facility may include a fire training tower, residential training prop, outdoor seating pavilion, fire administration building with classroom and storage facilities, in addition to the shooting range. 0 Libraw Learning Center - This project is to provide a permanent location for the Adult Learning and the Centro de Informacion programs. The existing building adjacent to Holiday Park will be remodeled and a second story, approximately 5,000 square feet, will be added ‘for a total cost of $3.1 million. 0 Fire Station No. 6 Relocation - Fire Station No. 6 is currently located in a temporary facility in the southeast quadrant of Carlsbad. Relocation of this station to a 6,200 square foot permanent facility along the east side of Rancho Santa Fe Road is scheduled to occur concurrent with the road alignment project. Total cost is projected at $5.4 million. This fire station is required to ensure a five-minute response time within the southeast part of the City as development in that area occurs. Fire Station No. 3 Relocation - Fire Station No. 3 is currently located at the corner of Chestnut and Catalina. As the City grows eastward, relocation of this station is needed to ensure the five- minute response time. The new station is budgeted as a 6,200 square foot facility sited next to Calavera Hills Community Park. The suitability of this location is currently under review. STREET PROJECTS Traffic congestion is one of the top concerns among citizens according to the City’s latest public opinion survey. To help improve the flow of traffic throughout Carlsbad and to keep the City’s streets in top condition, there are a number of street projects expected to be completed in the next five years. Some of the larger ones include: Faraday Avenue and Melrose Drive Extensions east of El Camino Real - This project encompasses the extension of Melrose Drive from Palomar Airport Road to the CarlsbadNista city limits and the extension of Faraday Avenue from Orion Way to Melrose Drive in Vista. The Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM project would include the reconstruction of a portion of existing Melrose Drive in the City of Vista and the construction of a bridge over the Agua Hedionda Creek along Faraday Avenue. This project is being built by the developers in the area and reimbursed from the proceeds of a bond issue. The formation of a Community Facilities District is underway and will be the mechanism for the issuance and repayment of the debt. Poinsettia Lane East of El Camino Real - This project, located along the future alignment of Poinsettia Lane from El Camino Real east to El Fuerte Street, will complete another eastlwest arterial linkage from Melrose Drive to Interstate 5. The project is expected to be comptete and open to the public in mid-2005. It was funded through an assessment district that issued debt and will be repaid from assessments placed on the property. 0 Colleqe Boulevard and Cannon Road - Ultimate construction of the missing link of College Boulevard from Cannon Road south to El Camino Real is the goal of this project. It also includes a 1,200-foot section of Cannon Road east of the College/Cannon intersection. The financing program for this section of road is under discussion and will need to be resolved before construction can begin. and overlays when roadways are beginning to show signs of distress can minimize the more expensive repairheactive maintenance activities. The proactive approach consists of the scheduled application of a seal or overlay once every seven years. By using the proactive approach the City can efficiently maintain over 330 miles of public roadways at an annual cost of approximately $3.3 million dollars. Pavement Management - A street can last a lifetime if it is properly maintained. Applying seals WATER/ SEWER PROJECTS Although the City's water and sewer projects may not be the most discussed projects in the community, they are vital to the health and welfare of its citizens. Most new lines are built and paid for by developers. As the City ages, the number of these projects will grow as it becomes necessary to repair and replace the lines that are being built today. 0 VistalCarlsbad Interceptor - Reaches 13 to 15 of the project, extending from the Encina Facility to the Agua Hedionda Lift Station, are scheduled in the next five years. This project is required to handle buildout flows and replace deteriorated pipeline, and is partially funded by the City of Vista. 0 within the next five years: Water Lines - Several major water lines are scheduled for construction - - - - Faraday Avenue extension - 0 Recvcled Water Program - Construction of the Recycled Water Facility is complete. This $45 million project included construction of a four-million-gallons-per-day treatment plant, distribution pipelines, a flow equalization storage facility, and pump stations. Although the construction of the treatment plant is complete, timing of the plant operations is dependent upon completion of Encina's Flow Equalization project. The facility will be tested during the last few months of fiscal year 2004-05 and should begin operations shortly thereafter. The pipelines will also be completed by that time, and the pump stations and Mahr Reservoir will become operational around July 2006. Cannon Road east of El Camino Real Carlsbad Boulevard - south of Avenida Encinas College Boulevard - various sections Melrose Drive from Palomar Airport Road to Faraday 34 Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM CAPITAL PROJECTS THROUGH BUILDOUT The CIP for 2005-2006 to buildout outlines approximately 154 future projects at $445 million. CIP Proiects - All Future Proiects Type of Proiect Quantity Total Cosi ~ Civic Facilities Streets/Circulation Parks Sewer Water Drainage Other (loans) Total Future 16 47 15 24 44 8 N/A 154 $92,983,532 92,671,786 108,000,080 61,142,365 39,408,765 15,805,150 35,284,198 $445,295,876 The largest expenditure category is for park and recreational facility construction and acquisition projects, which total $108 million, or 24%. Park projects planned within all quadrants of the City are listed below in addition to the fiscal year design and/or construction is expected to begin. More detail follows on specific projects not discussed earlier in this report. PARK PROJECTS BY QUADRANT Northwest Quadrant Northeast Quadrant Pine Avenue Park: 2005 Pine Avenue Park Community Building: 2008-09 Hidden Canyon Park: 2005 Southwest Quadrant Poinsettia Park Community Building: 2009-1 0 Aviara Community Building: 201 5-20 Southeast Quadrant Alga Norte Park: 2005-06 Alga Node Aquatic Center: 2005-06 Leo Carrillo Park Phase Ill: 2015-20 Citywide Park and Recreational Proiects Municipal Golf Course: 2005-06 Business Park Recreational Facility: 201 5-2020 Veteran's Memorial Park: 201 0-2020 Aviara Community Facility - Located in the southwest quadrant of the city, this project includes the construction of an 18,000 square foot community facility that would include meeting and activity rooms, as well as park offices. Leo Carrillo Park Phase Ill - This park was once part of the original 2,538 acre working rancho, home to actor Leo Carrillo, his wife Edith, and their daughter Antoinette. It is located in the southwest quadrant, approximately one mile south of Palomar Airport Road. Initial restoration was completed and the park opened to the public in 2003. Future work includes renovation of the barn into a small theatre, restoration of the Cantina, Equipment Shed, Blacksmith Shop, Carriage House, and Water Tank. A botanical garden, picnic areas, and trails will also be added to enhance the visitor's experience of the ranch. Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM 0 Veterans Memorial Park - This project is located south and east of Agua Hedionda Lagoon adjacent to the future City Golf Course. The Master Plan includes the following improvements: community leisure needs, open space interpretive area, parking and maintenance facility. Other suggested uses for this park include an amphitheater complex, sports complex, conference center and numerous other active/passive recreation amenities. Construction of Civic facilities such as libraries, administrative facilities, police and fire facilities total $93 million of the total planned capital expenditures to buildout. Approximately 21% of future expenditures are planned for street and traffic signal construction projects. Included in this category is construction of major roadways that will add east to west and north to south connections and provide additional routes to the neighboring cities of Oceanside, Vista, and San Marcos. Sections of these roads are already under construction by developers. Additional roadway projects include replacement of the Carlsbad Boulevard Encinas Creek Bridge, several road-widening projects, and over $53 million for future pavement overlay. Additional traffic signals are expected to cost approximately $6 million. Sewer and drainage projects are expected to cost $77 million, which includes over $26 million in sewer replacement projects. Funding is also provided for the repayment of bonds for the expansion of the Encina Wastewater Facility, and the Encina Water Pollution Control Facility projects. Future water projects total about $39 million (9%) and include construction of new waterlines, both potable and recycled, concurrent with new development. Some of the major areas in which these installations or upgrades are planned include segments of College Boulevard and El Fuerte, and along El Camino Real. Replacement of existing potable and recycled waterlines is also included in this category, and additional reservoirs are planned to increase storage for ultimate demands. Specific timing and cost estimates for all capital projects are identified in the Detail Schedule of Capital Projects (2005-2006 to Buildout) following this narrative. UNFUNDED PROJECTS The City has identified the following projects, which at this time have no identifiable funding sources. The City will investigate obtaining possible outside funding such as federal and State grants, loans, or other financing sources. El Camino Real Widening from Cassia Road to Camino Vida Roble Palomar Airport Road Widening and Bridge Reconstruction Poinsettia Lane - Reach “E” Cannon Road - Reach 4 - College to City Limits Cannon Lake Park (6.7 Acres) Hosp GrovelBuena Vista Lagoon Improvements FUTURE GROWTH AND DEVELOPMENT There are a variety of revenues that are used to fund the capital projects. In order to estimate future revenues from development, several assumptions about the rate and type of future development need to be made. These assumptions can change from year to year and correlate with the economic Every year, City staff evaluates all existing and future private development projects and compares this information to the buildout capacity of the City using adopted general plans. Information about existing development activity combined with estimates of how remaining net developable land Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM might develop are then summarized to prepare future projections about when and where residential and non-residential development will occur. Finance Department staff prepare cash flow schedules using current fund balances combined with future estimated fees paid by those developments, then compares the available funds to the expenditure plan to ensure that funding will be sufficient for construction of the capital projects as planned in the CIP. In addition to evaluating whether or not capital funds are sufficient, significant operating cost impacts and availability of staff resources are also used to evaluate the timing of projects. Where funding discrepancies occur, alternative financing methods and project timing are again evaluated and recommendations are made to resolve the discrepancies. Residential development is expected to taper off in the future. The number of annual building permits issued is projected to decline compared to the previous five-year period. The development schedules of the remaining vacant parcels is driving the timing of the future units, rather than economic or market conditions. An additional 5,700 units are remaining before the City is predominantly built out. Residential development for 2004-2005 is projected at 1,350 units with an average about 665 units per year over the next five years. This is compared to an average of over 1,230 units per year for the previous five-year period. The decline is due to the dwindling supply of developable land, rather than a lack of demand. Residential Units Trend 2000 to 2010 Permits Issued 2000 1500 1000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 In contrast to the residential trends, the amount of non-residential development is projected to increase over the next five years. The average annual square feet of non- residential development for the past 5 years was about 671,000. This year, the estimate is for 936,000 square feet, and the average annual development for the next 5-year period is approximately 900,000 square feet per year. Projects include several neighborhood commercial/retail developments located in or near the areas where most of the residential development has occurred or where new development is planned over the next several years. In the southeast quadrant, commercial projects include retail and restaurants, a theater, and a daycare and church. Sunny Creek Plaza is a planned commercial development located east of El Camino Real at College Boulevard next to the Sunny Creek residential neighborhood, and the Bressi Ranch area will include 130,000 square feet of commercial development. Other commercial developments are planned at Calavera Hills and at Poinsettia Shores; at the La Costa Resort plans include construction of 302,000 square feet of commercial living units. Industrial development consists of various new office and industrial projects, as well as expansion of existing projects at Kelly Corporate Center, GIA, and Legoland. Development estimates provide the data and basis for estimating future fee revenues, which are calculated by 1 II Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM multiplying each applicable development fee by the estimated number of dwelling units and/or square feet of construction expected during each year. The following table shows the number of residential units and non-residential square feet of development used in calculating estimated revenues for 2005-2006 and subsequent years to buildout. Projected Development Residential and Non-Residential Construction Residential Non-Residential Year Units Square Feet 2004-2005 current 1352 672,630 2005-2006 920 936,596 2006-2007 537 774,304 2007-2008 257 1,186,177 2008-2009 81 0 950,782 2009-20 1 0 800 649,112 Years 6-1 0 1,324 4,963,632 Years 1 1-buildout 1,019 5,235,508 Total Future 5,667 14,696,111 REVENUES Revenues for Capital Projects from now until buildout total $554 million and are segregated into five major categories: (1) fees generated by development in Carlsbad, (2) special district fees and taxes (Community Facilities Districts and Bridge and Thoroughfare Benefit Districts), (3) Water and Sewer replacement reserves, (4) infrastructure replacement funds (other than sewer and water), and (5) other sources including grants, bond issues, and contributions from other agencies. Funding Sources 2005-2006 to Buildout Total Revenue = $554 million In Millions 175 150 125 100 75 50 25 0 Approximately 29% of all capital revenue is received as a result of development, and is dependent upon assumptions made about the City's annual growth in dwelling units and commer- ciaVindustrial square feet. Development revenues include Public Facilities Fees (PFF), Traffic Impact Fees (TIF), Park-In-Lieu Fees (PIL), Planned Local Drainage (PLD) Fees, Water Connection Fees (MFF), and Sewer Connection charges. Revenue from special districts, such as Community Facilities Districts (CFD) and Bridge and Thoroughfare Benefit Districts (BTD) Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM comprise 10% of the total. Water and Sewer replacement revenues generated by user fees equal approximately 22% of total revenues, and are used to pay for replacement of existing water and sewer facilities. Infrastructure Replacement revenues, equal to 16%, are transfers from the City’s General Fund which are being set aside to pay for replacement of major capital facilities other than sewer and water facilities. The remaining 23% consists of revenues from other agencies and includes federal and State grants, the County sales tax program (TransNet), Redevelopment agency revenue, Golf Course funding, and contributions from cities and other agencies. CALCULATION OF FUTURE FEES The revenue projections of the Capital Improvement Program reflect the growth assumptions identified in the previous section. The following information delineates how those assumptions were applied to estimate future development revenues. The mix of multi-family and single-family residential units is assumed to be 35% and 65% respectively and reflects the anticipated mix of residential development for each Local Facilities Management Zone. The building permit valuation used for computing Public Facilities Fees is $166,900 per multi-family dwelling unit, and $257,600 per single-family dwelling unit. A building permit valuation of $38 per square foot of construction is used to calculate non-residential Public Facilities Fees. In order to calculate estimated revenues for Traffic Impact Fees (TIF), the number of average daily trips was computed for each type of development use. A multi-family residential dwelling unit is assigned eight trips per day and a single-family unit is assigned ten trips per day. Each residential trip is valued at the 2005-06 TIF of $107. The trips-per-day value for commercial and industrial buildings are averaged at 23 trips per 1.000 square feet of development, although the actual volume of trips generated by commercial/industrial building can vary widely depending on the ultimate land use. The value assigned to each commercial/industrial trip is $43, CFD No. 1 is a citywide district established to finance various civic facilities required under the City’s Growth Management Plan. CFD No. 2 is to fund Rancho Santa Fe Road and Olivenhain Road, but has not yet been formally established. A prepayment program is in place to enable development to proceed within this proposed district. .. Park-in-Lieu Fees are collected for the purchase and development of parkland within each quadrant of the City, and the fees are based on the acquisition cost of parkland. Projects in the CIP funded with Park- in-Lieu Fees include future park site acquisition, development and restoration . There are two existing Bridge and Thoroughfare Fee Districts (BTD), which were formed by property owners to finance specific road construction projects located within each of the district boundaries. Poinsettia Lane - Aviara Parkway (BTD No. 2) was formed to finance the construction of Poinsettia Lane between Aviara Parkway and El Camino Real and Aviara Parkway between Palomar Airport Road and Poinsettia Lane. BTD No. 3 (Cannon Road West) was formed to fund portions of Cannon Road from Interstate 5 to El Camino Real. Although construction of this project is complete, revenues collected from future development within the district will be used to repay an advance that provided interim funding to complete the project. Exhibit 2 2005-2006 PRELIMINARY CAPITAL IMPROVEMENT PROGRAM SUM MARY The proposed 2005-2006 to Buildout CIP is being driven by the City’s commitment to ensure that facilities are available to service the’developing areas as well as the current residents. Carlsbad’s philosophy has been to build quality capital facilities, which meet, and at times exceed, Growth Management standards. Phasing projects over a period of years to match funding availability for construction and operations is often used to meet the needs of Growth Management. The 2005- 2006 to Buildout Capital Improvement Program reflects the commitment of Carlsbad’s Council and staff to continue providing its residents with a better quality of life. GROWTH MANAGEMENT PLAN The Growth Management Plan was developed and voted into law by the citizens of Carlsbad in 1986. The plan was established to manage development within the City by linking residential, commercial, and industrial development directly to standards for availability of public services and facilities. The Growth Management Plan adopted has established precise standards for eleven public facilities. Standards must be met at all times as growth occurs. Facilities for which standards have been established are as follows: - City Administrative - Wastewater Treatment - Circulation - Fire - Water Distribution - Schools - Library - Parks - Drainage - Open Space - Sewer Collection The Plan requires that appropriate public facilities be available, in conformance with the adopted performance standards, as development occurs. Unless all of the eleven public facility standards have been met, no new development can occur. The Growth Management Plan impacts both the Operating Budget and the Capital Improvement Program. The detailed level of planning required by Growth Management has allowed Carlsbad’s Capital Improvement Program to anticipate the funding needed for capital improvements through buildout of the City. The timing of construction of facilities is governed by the rate of development and the eleven performance standards. New public facilities often require additional staffing and other resources, which affects the Operating Budget. Facilities such as community centers, parks, and fire stations have been constructed and opened to the public under this program. The Capital Improvement Program has been designed to specifically address areas where new or expanded facilities will be needed to maintain compliance with the adopted performance standards. With the adoption of the 2005-2006 CIP, compliance with the Growth Management Plan is assured. 1 2 3 4 5 6 ,7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 3 RESOLUTION NO. 2005-196 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET AND CAPITAL IMPROVEMENT OF CARLSBAD AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR THE VARIOUS FUNDS. PROGRAM FOR THE FISCAL YEAR 2005-06 FOR THE CITY WHEREAS, the City Council of the City of Carlsbad, California has reviewed the proposed final Operating Budget and Capital Improvement Program for fiscal year 2005-06 and has held such public hearings as are necessary prior to adoption of the final budgets. WHEREAS, the Planning Commission made a finding of General Plan Consistency for all projects receiving an allocation of funds for fiscal year 2005-06 on May 4, 2005 pursuant to Planning Commission Resolution No. 5896. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Carlsbad, California, as follows: 1. That certain documents now on file in the office of the City Clerk of the City of Carlsbad entitled, “City of Carlsbad, 2005-06 Operating Budget and 2005-06 to Buildout Capital Improvement Program - Preliminary” as amended in accordance with Exhibits 3-A through 3-C attached hereto and incorporated by reference herein, is hereby adopted as the Operating and Capital Improvement Budgets for the City of Carlsbad for the fiscal year. 2. That the amounts reflected as estimated revenues for fiscal year 2005-06 as shown in Exhibits 3-A and 3-8 are hereby adopted as the budgeted revenues for 2005-06. 3. That the amounts designated as the 2005-06 Budget request in Exhibits 3-A and 3-B are hereby appropriated to the department or fund for which they are designated, and such appropriation shall not be increased except as provided herein. 4. That total appropriations for each fund may only be increased or decreased by the City Council by passage of a resolution amending the budget except as provided herein. 5. That the following controls are hereby placed on the use and transfers of budget funds: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 2 of Resolution # 2005-196 Exhibit 3 A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the City Council or City Manager as described below. i. The City Manager may authorize all transfers of funds from account to account within any department. ii. The City Manager may authorize transfers of funds between departments within the same fund in an amount up to $1 00,000 per transfer. iii. The City Manager may delegate any of the authority given to him under this resolution. iv. The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue, which is designated for said specific purpose. v. The City Manager may authorize the transfer of appropriations between accounts and/or capital projects up to $1,000,000 for the costs associated with the Encina Wastewater Facility (Encina) as authorized by the Encina Wastewater Authority’s staff and/or Board. Any increase to the total appropriations for Encina’s operating budget and capital program must be approved by the City Council. vi. The City Manager may authorize budget adjustments to increase the appropriations for Workers Compensation and Liability funds operating budget in an amount equal to the increases in costs of claims expenses. vii. The City Council must authorize all transfers of funds from the Council’s Con ti n g e n cy Accou n t . B. The City Manager may authorize emergency out of state travel for public safety or emergency services purposes. C.The City Council must authorize any increase in the number of authorized permanent personnel positions above the level identified in Exhibit 3-C. D. The City Manager may authorize the hiring of temporary or part time staff as necessary, within the limits imposed by the controls listed above. UJ- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 3 of Resolution # 2005-196 Exhibit 3 6. That the legal level of budgetary control is the fund level. Budgets may not legally be exceeded at the fund level without appropriate authorization by the City Council. 7. That interest earned on grants may be appropriated during the year for the purpose for which the grant was received. 8. That all appropriations in the Operating Budget and in Capital Improvement Program remaining unexpended at June 30, 2005, are hereby appropriated to the 2005-06 fiscal year 9. That the Finance Director is authorized to make the following budget adjustments to the Encina Capital Projects in the 2004-05 fiscal year: E nci n a Bu i Id i ng I m p rove me n ts Encina Capital and Staffing (315,381) Encina Flow Equalization 1 19,020 Encina Phase V Expansion (1.655.498) Total Budget Decrease $ (564,417) IO. That all appropriations for outstanding encumbrances as of June 30, 2005, are $ 1,287,442 hereby continued into 2005-06 for such contracts or obligations. Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Y3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 4 of Resolution # 2005-196 Exhibit 3 PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 21st day of JUNE , 2005 by the following vote, to wit: AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: None ATTEST: LORRAINE M. WOO (SEAL) CITY OF CARLSBAD OPERATING FUNDS PROJECTEDFUNDBALANCES Exhibit 3-A UNRESERVED PROJECTED BALANCE ESTIMATED ESTIMATED FUND BALANCE FUND JULY 1,2004 REVENUES EXPENDITURES TRANSFERS JUNE 30,2005 GENERAL FUND 59,352,012 TRANSFER TO MEDIAN MAINTENANCE TRANSFER TO VEHICLE REPLACEMENT TOTAL 59,352,012 99,542,000 89,747,969 99,542,000 89.747.969 11 9,967 69,266,010 (335.701) (335,701) (410,000) (410.000) 68,520,309 SPECIAL REVENUE I POLICE ASSET FORFEITURE 418.731 COPS GRANT 71,968 POLICE GRANTS 89,167 HOUSING SECTION 8 441,141 HOUSING TRUST FUND 9,221,479 LIBRARY ENDOWMENT FUND 19,422 LIBRARY GIFTSBEQUESTS 104,075 TREE MAINTENANCE 807.839 MEDIAN MAINTENANCE (1 38,635) STREET LIGHTING 1,022,998 BUENA VISTA CRK CHNL MNT 849.916 LLD #2 13.413 ARTS SPECIAL EVENTS 24,351 RECREATION DONATIONS 81,525 SENIOR DONATIONS 181,600 CDBG ENTITLEMENT 45,157 COMMUNITY ACTIVITY GRANTS 1,012,967 CULTURAL ARTS PROGRAM 216,463 SISTER CITY DONATIONS 5,881 ARTS GENERAUGALLERY DONATIONS 109,886 TOTAL 14.601.346 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 12,849.1 17 88.795 211.968 88,200 6,409,623 3,577.185 10,350 62.869 872.394 7 15,000 1,124,073 183,995 41.082 42,652 13,000 6,000 671,404 49,600 15,141 0 6,000 14,189.531 388.436 0 18.787 284,053 9,020,891 16,072 109,206 531.9 17 335,701 (71,279) 821.126 790,923 43,541 26,999 96,025 192,600 0 1,000,067 209,322 (6,081) 0 (1 13.886) 0 13,476,666 ENTERPRISE I WATER OPERATIONS 13.118.191 4,284,072 RECYCLED WATER OPERATIONS SANITATION OPERATIONS 5,821,365 SOLID WASTE MANAGEMENT 5.826.181 GOLF COURSE TOTAL 1,794.887 30.826.696 21,217,548 2.220.795 6,800.000 2,525,115 60.000 32,823.456 20,525,157 2,206,050 7,960,745 1,635,463 95,893 32.423.328 --e 13310,580 4278.817 4,660,620 6.717.813 1,758,994 31,226,824 INTERNAL SERVICE J 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 VILLAGE OPERATIONS / DEBT SVC 3.283245 VILLAGE LOW/MOD INCOME HOUSING 2,157,134 SCCRA OPERATIONS I DEBT SVC 810.313 SCCRA LOWlMOD INCOME HOUSING 363.640 TOTAL 6,614,332 - 2,128,512 1,255,000 850,000 1,722,000 1,712,300 4,250,400 11,916,212 1.883.054 499,500 168.822 60.375 2.61 1,551 2,066,026 1,047.883 861,000 1,860,000 828,000 5,400,000 12,082,909 3.890.472 77,746 528.119 41,934 4.538.271 2,970,984 1,727,797 814,489 (24,791) 410,000 8,724,166 2,440,348 16,652,993 - 1.275.827 2,578888 450,816 382,081 4.687.612 TOTAL OPERATING FUNDS $1 27.804.076 $1 59,742,336 5152,982,008 $0 $0 5134,564,404 CITY OF CARLSBAD PROJECTEDFUNDBALANCES PROJECTED PROJECTED BALANCE ESTIMATED PROPOSED FUND RESERVED BALANCE OPERATING FUNDS Ex hi bi t 3-A FUND JULY 1.2005 REVENUES BUDGET TRANSFERS BALANCES JUNE 30,2006 GENERAL FUND 88,520,309 104.785.000 97,196,286 TOTAL 68,520.309 SPECIAL REVENUE POLICE ASSET FORFEITURE 386.436 COPS GRANT 0 POLICE GRANTS 18.767 HOUSING SECTION 6 284.053 HOUSING TRUST FUND 9,020391 LIBRARY ENDOWMENT FUND 16,072 LIBRARY GIFTS/BEQUESTS 109.206 TREE MAINTENANCE 531.91 7 MEDIAN MAINTENANCE (71,279) STREET LIGHTING 621,126 BUENA VISTA CRK CHNL MNT 790,923 LLD #2 43,541 ARTS SPECIAL EVENTS 26,999 RECREATION DONATIONS 96,025 SENIOR DONATIONS 192.600 CDBG ENTITLEMENT 0 COMMUNITY ACTIVITY GRANTS 1.000.067 CULTURAL ARTS PROGRAM 209,322 SISTER CITY DONATIONS 0 ARTS GENERAL DONATIONS 0 TOTAL 13,476,666 ]ENTERPRISE WATER OPERATIONS 13.810.580 RECYCLED WATER OPERATIONS 4.276.817 SANITATION OPERATIONS 4,660,620 SOLID WASTE MANAGEMENT 6.717.813 GOLF COURSE 1,758,994 TOTAL 31.226.824 - INTERNAL SERVICE I WORKER'S COMP SELF INSUR 2,970.984 RISK MANAGEMENT 1,727.797 HEALTH INSURANCE 614,469 VEHICLE MAINTENANCE (24,791) VEHICLE REPLACEMENT 8,724,168 INFORMATION TECHNOLOGY 2,440,346 TOTAL 16.652.993 IREDEVELOPMENT I VILLAGE OPERATIONS / DEBT SVC 1.275,827 VILLAGE LOW/MOD INCOME HOUSING 2,578,886 SCCRA OPERATIONS I DEBT SVC 450,816 SCCRA LOWMOD INCOME HOUSING 382,081 TOTAL 4,667,612 3 - 104.785.000 L 56.500 135.000 0 5.854.088 390.000 6.000 45.000 485.515 411.187 905,120 127.500 127,639 35,200 22.500 17.000 691,549 30,000 7,000 0 n 97.196.286 89.200 135.000 0 5.980.9 15 417.983 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 n 9,346,996 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 1,954,054 560,000 12,000 8,000 2334,054 10,123,701 22,244,166 2,844,807 7,703,159 2,295,447 125,000 35,012,599 2,416,866 1,766,631 941,500 2,069,676 1,995,000 4,682,332 13,692,005 1,737,357 94,396 278,517 36,917 2,147,187 * - 225,000 300,000 (300,000) 76,109,023 (225.000) (21,000,000) 54,884,023 1 353.738 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 (1,000,000) 67 188.322 0 n 11,926,963 13,143,493 4,061,339 4.236.596 6,518.023 1,653,994 29,613,445 (2.908.691) 240,467 (580.732) 695,434 447,989 (175,277) (5,000,000) 3,501,246 (1,190,000) 718,616 5,428.475 1,492,524 (2,651.516) 392.976 184.299 353,164 2,422,963 TOTAL OPERATING FUNDS $13434.404 $162,414,382 $158,371,778 ($21,000,000) $104275.869 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES Exhibit 3-A ACTUAL PROJECTED ESTIMATED REVENUE REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 2005-06 IGENERAL FUND PROPERTY TAX SALES TAX TRANSIENT TAX FRANCHISE TAX BUSINESS LICENSE TAX TRANSFERTAX , TOTAL TAXES INTERGOVERNMENTAL VEHICLE LICENSE FEES OTHER TOTAL INTERGOVERNMENTAL LICENSES AND PERMITS BUILDING PERMITS OTHER LICENSES 8 PERMITS TOTAL LICENSES 8 PERMITS CHARGES FOR SERVICES PLANNING FEES BUILDING DEPT. FEES ENGINEERING FEES AMBULANCE FEES RECREATION FEES OTHER CHARGES OR FEES TOTAL CHARGES FOR SERVICES FINES AND FORFEITURES INCOME FROM INVESTMENTS AND PROPERTY' INTERDEPARTMENTAL CHARGES OTHER REVENUE SOURCES $26,960,253 $28,074,000 25,571,192 26,598,000 8.81 3.426 9.836.000 5.027.425 5,719,000 2.871.715 3,030,000 1,587,200 1,230,000 70,831211 74,487,000 4,124.672 5,449,000 1.593.189 1.31 8,000 5,717.86 1 6,767,000 1,282,126 1,600,000 1,046,398 1,200,000 2,328,524 3,000,000 774,297 800,000 877.060 1,216,000 2,012,762 1,800,000 1,448.387 1,350,000 1,396,117 1,506,000 1,075,308 1,104,000 7.583.931 7.778.000 936,406 900.000 1.476,749 3,010.000 2,604,355 2,600,000 1.479.371 1 .ooo.ooo .. $37,272,000 28,653,000 10279,000 5,326.000 600.000 1,115,000 1,270,000 1,419,000 1,551,000 1,136.000 926,000 2.700.000 I 750.000 * Interest is calculated on an amortized cost basis. AS % DIFFERENCE OF FY 04-05 2004-05 TO PROJECTED 2005-06 32.8% 9,188,000 7.7% 2,055,000 4.5% 443.000 -6.9% (393,000) 5.6% 170,000 0.1% 1,000 15.4% 11,474,000 * -90.8% (4.946.000) -13.2% (174,000) (5,120,000) -75.7% (150,000) -8.3% -8.3% (100,000) -8.3% (250,000) -25.0% (200,000) -8.3% (101,000) -29.4% (530,000) 5.1% 69.000 2.9% 43,000 2.9% 32,000 -8.8% (687,000) 2.9% 26,000 -1.7% 150.000) .. 3.9% 100.000 -25.0% f250,OOO) 5.3% 5.243.000 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 Exhibit 3-14 ESTIMATED REVENUE 2005-06 SPECIAL REVENUE FUNDS I POLICE ASSET FORFEITURE ASSET FORFEITURES 155.974 50,000 INTEREST 951 6,500 TOTAL 156,925 56,500 COPS GRANT STATE FUNDING (AB3229) 134.514 140,000 INTEREST 0 0 TOTAL 134,514 140.000 7 - POLICE GRANTS STATE GRANT INTEREST TOTAL 34,408 17,800 0 0 34.408 17,800 i HOUSING -SECTION 8 FEDERAL GRANT 5,749,564 6,250.735 INTEREST 1,943 2,000 TOTAL 5,751,507 6,252,735 HOUSING TRUST FUND AFFORDABLE HOUSING FEES 468,593 1,290,000 FEDERAL GRANT 544,503 7.464 INTEREST 75.996 280,000 OTHER 4,495,273 1,799.1 33 TOTAL 5,604,362 3,376397 LIBRARY ENDOWMENT FUND INTEREST 2,209 7.000 TOTAL 2,209 7,000 LIBRARY GIFTS/BEQUESTS i GIFTSBEQUESTS 64,597 66,000 INTEREST 0 2,000 TOTAL 64,597 68,000 50.000 135,000 I 5,852,088 5,854,088 135.000 250,000 390 000 AS % DIFFERENCE OF FY 04-05 2004-05 TO PROJECTED 2005-06 0.0% 0 0.0% 0 0.0% 0 - -3.6% (5.000) 0.0% 0 -3.6% (5,0001 -100.0% (17,800) 0.0% 0 -100.0% (17,800) -6.4% (398,647) 0.0% 0 -6.4% (398,647) (1,155,000) -89.5% -33.0% (2.464) -10.7% (30,000) -100.046 (1,799,133) -88.5% (2,966,597) 14.3% 1,000 14.3% 1,000 -34.9% (23,000) 0.0% 0 -33.8% (23,000) -> CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES Exhibit 3-A ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 TREE MAINTENANCE - TREE MAINTENANCE FEES INTERDEPARTMENTAL INTEREST OTHER TOTAL MEDIAN MAINTENANCE MEDIAN MAINTENANCE FEES OTHER INTEREST TOTAL STREET LIGHTING STREET LIGHTING FEES INTERDEPARTMENTAL OTHER INTEREST TOTAL BUENA VISTA CREEK CHNL MAINT - - BUENAVISTA FEES INTEREST TOTAL 461,393 127,911 6.881 1,040 597.225 420,019 34.378 0 454.397 700,207 186,215 7,465 9,401 903.288 23 6,699 466,672 106,000 23.800 596.472 421.700 24,497 458 446,655 - 713.634 173,655 3,212 31.700 922,201 100,000 25,000 125,000 - LLD #2 FEES INTEREST TOTAL 0 536 536 70,885 325 71.210 ARTS SPECIAL EVENTS - d DONATIONS INTEREST TOTAL 21,475 0 RECREATION DONATIONS DONATIONS INTEREST TOTAL 33,041 633 33,674 45,000 300 45,300 23,800 3,700 27,500 ESTIMATED REVENUE 2005-06 466,415 0 19,100 485.515 41 1,187 0 0 411.187 703,160 172,460 0 29,500 905,120 127,638 20c 127,83E . 35.00C 20c 20,ooc 2.5Oc 22.5Oc As% DIFFERENCE OF FY 04-05 2004-05 TO PROJECTED 200506 -0.1% (257) -100.0% (1 06,000) -19.8% (4,700) 0.0% 0 -18.6% (110,957) -2.5% (10,513) -100.0% (24,497) -100.0% (458) -7.9% (35,468) -1.5% (10,474) -0.7% (1.1 95) -100.0% (3.212) -6.9% (2.200) -1.9% (17.081) 0.0% 0 10.0% 2,500 2.0% 2,500 F - 80.1% 56.754 -38.5% (125) 79.5% 56,629 -22.2% (10,000) -33.3% (100) -22.3% (10,100) -16.0% (3.800) 0.0% 0 -18.2% (5,000) ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 SENIOR DONATIONS DONATIONS INTEREST OTHER TOTAL ESTIMATED REVENUE 200506 CDBG ENTITLEMENT FEDERAL GRANT INTEREST OTHER TOTAL COMMUNIN ACTlVlN GRANTS MlSC INCOME INTEREST TOTAL CULTURAL ARTS PROGRAM INTEREST TOTAL ARTS GENERAUGALLERY DONATIONS (2) DONATIONS INTEREST TOTAL SISTER CITY DONATIONS (2) DONATIONS INTEREST TOTAL 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 6.000 1,729 6,000 6,924 7,000 912 3,000 7.836 10,000 500 200 50 0 550 200 F 7,000 TOTAL SPECIAL REVENUE FUNDS 14,560,214 12,649,117 I 9,348.998 Exhibit 3-A AS % DIFFERENCE OF FY 04-05 2004-05 TO PROJECTED 200506 0.0% 0 0.0% 0 0.0% 0 0.0% 0 1.8% 11.302 0.0% 34,000 0.0% 20,000 10.4% 65,302 -7- -100.0% (4,700) -6.3% (2.000) -18.3% (2.000) 16.7% 1,000 16.7% 1,000 -100.096 (7,000) -100.0% (3.000) -100.0% (10,000) -- -27.2% (3,500,119) CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES Exhibit 3-A ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 200344 2004-05 ENTERPRISE FUNDS I WATER OPERATIONS 13,695,505 13,939,200 WATER SALES READY TO SERVE CHARGES PROPERTY TAXES 3.632.556 3,711,019 1,843,110 1,935,266 NEW ACCOUNT CHARGES 107,565 104.338 BACK-FLOW PROGRAM FEES 104.032 106.113 PENALTY FEES INTEREST ENGINEERING OVERHEAD 219,279 250.000 478.103 470,000 304,296 375,000 SERVICE CONNECTION FEES 173,488 168,283 AGRICULTURAL CREDITS 89,403 85.827 OTHER 1,129,269 72,500 TOTAL 21,776,606 21.217.546 RECYCLED WATER WATER SALES 1,121,164 1,200,000 READY-TO-SERVE CHARGE RECYCLED WATER CREDITS INTEREST TOTAL SANITATION OPERATIONS SERVICE CHARGES MlSC SEWER ENGINEERING OVERHEAD PENALTY FEES INTEREST OTHER TOTAL SOLID WASTE MANAGEMENT INTEREST RECYCLING FEES (A8939) PENALTY FEES NON-JURISDICTIONAL FEES STATE GRANT TRASH SURCHARGE OTHER TOTAL GOLF COURSE OTHER INTEREST TOTAL 118.134 100,000 385,298 477.180 408,966 443,615 2,033,562 2,220,795 6,096,801 48,966 188,133 56,933 235,555 63,389 6,689,777 162,956 283.765 39.888 639,775 27,509 0 0 6,334,000 21,000 150,000 63,000 202,000 30,000 6,800,000 165,000 275,000 40,000 620,000 25,051 1,400,064 0 1,153.893 - 0 18,326 16,326 2.525.1 15 15,000 45,000 60,000 TOTAL ENTERPRISE FUNDS 31,670,164 32,823,456 ESTIMATED REVENUE 2005-06 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 1,536,762 128,063 696,300 66,204 2,427.329 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 2,095,657 0 20.000 20,000 33,399,220 DIFFERENCE AS % OF FY 04-05 2004-05 TO PROJECTED 2005-06 0.7% 91,999 2.2% 80,158 5.0% 96.763 -3.0% (3.130) 2.0% 2,122 2.0% 5,000 17.5% 82,423 3.0% 11,250 -3.0% (5,048) -4.0% (3.433) 2.0% 1,449 1.7% 359,553 28.1 % 336,762 28.1% 28.063 45.9% 219,120 -85.1% (377.41 1) 9.3% 206,534 -- 8.0% 509,212 3.7% 785 3.0% 4,500 3.7% 2,355 -3.8% (7.717) -103.0% . (30.000) 7.1% 479,135 32.2% 53,057 4.0% 11.000 4.0% 1,600 -100.0% (620,000) -100.0% (25,051) 10.7% 149,936 0.0% 0 .. . -17.0% (429,458) -100.0% (15,000) -55.6% (25,000) (1) (40,000) 1.8% 575,764 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOURCE 2003-04 2004-05 INTERNAL SERVICE FUNDS Exhi bit 3-14 2005-06 PROJECTED 2005-06 DIFFERENCE OF FY 04-05 2004-05 TO ACTUAL PROJECTED ESTIMATED REVENUE REVENUE REVENUE TOTAL INTERNAL SERVICE FUNDS 15,638,306 11,916,212 12,347,110 3.6% 430.698 WORKERS COMP SELF-INSURANCE INTEREST 13,725 95.000 0.0% 0 INTERDEPARTMENTAL 3,250,216 1,999,630 OTHER (OP TRANS IN) 53,368 31,882 TOTAL 3,317,309 2,126,512 2,200,240 10.0% 200,610 -100.0% (31.882) 166.728 2,295,240 7.9% 40,000 0.0% 0 7.1% 85,000 10,000 -33.3% (5.000) 6.4% 60,000 LIABILITY SELF-INSURANCE INTEREST 5,673 40,000 INTERDEPARTMENTAL 651.068 1,200,000 OTHER 20,099 15,000 TOTAL 676,840 1,255,000 1,335,000 HEALTH INSURANCE INTEREST 3,287 0 I 0 1 0.0% 0 875.000 2.9% -100.0% 2.9% 25,000 INTERDEPARTMENTAUREIMB. 2,906,134 850,000 TOTAL 2,909,421 850,000 RECORDSMANAGEMENT(1) INTEREST 0 INTERDEPARTMENTAL 923,071 0 0 0 0 0 0% 0.0% 0 0 OTHER TOTAL 0.0% 0 0.0% 0 0 923,071 I VEHICLE MAINTENANCE INTERDEPARTMENTAL 1.589.612 1,699,000 OTHER TOTAL VEHICLE REPLACEMENT INTERDEPARTMENTAL 1,899,190 11.8% 200,190 85.890 23,000 20,000 -13.0% (3.000) 197,190 1,675,502 1.722.000 1.463.766 1,506,000 INTEREST 62,182 200,000 I OTHER TOTAL 1,572,060 200,000 4.3% 64,060 0.0% 0 -100.0% (4,300) 1,600,189 1,712,300 4'300p1 1.772.080 3.5% 59,760 74,241 4,144,400 4,050,600 0 4,250,400 4,150,600 INFORMATION TECHNOLOGY INTEREST 26,295 INTERDEPARTMENTAL 3,868,912 OPERATING TRANSFER IN 620,769 TOTAL 4,535,976 -5.7% (6.0001 -2.3% (93.800) 0.0% a -2.4% (99,800) CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES Exhibit 3-A ACTUAL PROJECTED REVENUE REVENUE REVENUE SOURCE 2003-04 2004-05 REDEVELOPMENT FUNDS I VILLAGE OPERATIONS I DEBT SERVICE RENTAL INCOME 39.434 83,054 TAX INCREMENT 1.734.557 1,758,000 INTEREST 20,717 22,000 OTHER TOTAL 12,916 20,000 1,807.624 1.883.054 VILLAGE LOW AND MOD INCOME HSNG - TAX INCREMENT 433,639 439,500 INTEREST TOTAL. 100.667 60,000 534.306 499,500 SCCRA OPERATIONS I DEBT SERVICE TAX INCREMENT 712,273 143,622 INTEREST 21,202 25.000 TOTAL 733,475 168.622 SCCRA LOW AND MOD INCOME HSNG TAX INCREMENT 237,424 47.875 INTEREST 4,647 12.500 TOTAL 242,071 60,375 TOTAL REDEVELOPMENT FUNDS 3.317.476 2,611,551 ESTIMATED REVENUE 2005-06 83.054 1,846,000 20,OOo 5,000 1,954,054 460,000 100,000 560,000 .o 12,000 12,000 0 8,000 8,000 2.534.054 AS % DIFFERENCE OF FY 0405 200445 TO PROJECTED 2005-08 0.0% 0 5.0% 88,000 -9.1% (2.000) -75.0% (1 5,000) 3.8% 71,000 - 4.7% 20,500 66.7% 40,000 12.1% 60,500 -100.0% (143,622) -52.0% (13,000) -92.9% (1 56,622) -100.096 (47,875) -36.0% (4.500) -88.8% (52,375) -3.0% (77,497) TOTAL OPERATING $158,144,570 $159,742,336 t162,414,382 1.7% $ 2,672,046 I CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE Exhibit 3-A 2004-05 2004-05 2002-03 2003-04 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES BUDGET IGENERAL FUND I POLICY AND LEADERSHIP GROUP CITY COUNCIL 273,211 286,353 322,057 332,403 CITY MANAGER 1,023,959 1,129,686 1,314,111 1,228,707 COMMUNICATIONS 472,185 595,310 795,810 810,970 CITY CLERK 290,791 269,054 145,177 124,215 CITY ATTORNEY 880,955 937,889 1,042,762 1,010,674 CITY TREASURER 138,606 163,718 157,853 16 1,684 TOTAL POLlCYlLEADERSHlP 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 HUMANRESOURCES 1,336,419 1,475,974 1,915,040 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 SAFEN POLICE 16,038,113 18,333,703 20,850,000 19,972,533 FIRE 11,003,474 12,149,739 12,928,892 13,125,787 33,778,892 33,098,320 TOTAL PUBLIC SAFEN 27,041,587 30,483,442 COMMUNITY DEVELOPMENT COMMUNIN DEVEL ADMIN 512,252 476.278 557,183 528,556 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 3,415,121 1,906,938 BUILDING 1,658,873 1,622,392 1,496,107 6,332.538 TOTAL COMMUNITY DEVELOPMENT 5,598.168 6,067,024 5,418,080 COMMUNITY SERVICES 8,343,338 LIBRARY 7,454,753 7,916,003 8,372,176 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 13,715,279 14.868,212 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 4,062,276 643,147 2,781,202 2.1 95,416 828,401 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 5,263,482 884.317 15,775,902 YDINCR (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 City 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 2004-05 2004-05 2002-03 2003-04 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES BUDGET PUBLIC WORKS PUBLIC WORKS ADMIN 757,423 ENGINEERING 5,795,740 FACILITIES MAINTENANCE 2,343,468 PARK MAINTENANCE 3,127,448 STREET MAINTENANCE 2,331,712 TRAFFIC SIGNAL MAINT 502,211 TRAILS MAINTENANCE 739 TOTAL PUBLIC WORKS 14.858,74 1 NON-DEPARTMENTAL COMMUNITY PROMOTION COMMUNITY CONTRIBUTIONS BEACH PARKING HIRING CENTER HOSP GROVE PAYMENT PROPERTY TAX AND OTHER ADMIN DUES 8 SUBSCRIPTIONS INFRASTRUCTURE REPLACE TRANS 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 0 752,433 5,724,009 2,800,154 3,434,194 2,479,551 577.644 63,796 15,831,781 468,135 112,000 0 83,084 800,000 357,643 43,210 3,605,000 0 272,282 0 0 0 855,586 6,460,163 3,016,250 3,660,000 2,405,000 765,000 76,000 17,237,999 420,281 47,000 0 83,799 800,000 390,000 70,000 3,830,000 0 50.000 0 800,000 0 869,734 6,262,145 2,987,015 3,557,094 2,496,233 720,991 76,269 16,969.481 509,100 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 200546 PROPOSED BUDGET 956,235 6,774,725 3,116,747 4,437,758 2,670,829 828,287 170,968 18,955,549 84,670 501,500 36,000 85,000 800,000 420,400 73,150 4,250,000 500,000 250,000 C 600,000 C C 7,600,720 94,896,286 2,300,000 97,196,286 Exhibit 3-A UNCR (DEC) 04-05 BUD TO 05-06 BUD 9.9% 8.2% 4.3% 24.8% 7.0% 14.9% 124.2% 11.7% -83.4% 0.0% 0.0% 0.0% 7.7% 0.3% 11 .O% -13.8% 0.0% -25.0% 3.4% 7.6% 0.0% 7.4% CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE 2004-05 2004-05 ADOPTED 2002-03 2003-04 ESTIMATED DEPARTMENT ACTUALS ACTUALS EXPENDITURES BUDGET SPECIAL REVENUE FUNDS I POLICE ASSET FORFEITURE COPS FUND POLICE GRANTS HOUSING SECTION 8 HOUSING TRUST LIBRARY ENDOWMENT FUND LIBRARY GIFTSBEQUESTS 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 78,211 180,153 190,411 5,019,097 207,489 11,850 80,327 674,596 536,783 934,504 88,418 0 60,109 25,425 805,723 95,355 5,174 0 19,566 16,970 9,030,161 IENTERPRISE FUNDS I 65,597 242,736 41.487 5,724,867 2,843,955 9,066 76,312 865,078 523,055 983,443 50,431 17,124 47,690 19,654 713.751 52,745 14,480 0 1,615 4,429 12,097,515 WATER OPERATIONS 19,038,158 20,656,334 RECYCLED WATER OPERATIONS 1,552,164 1,762,349 SANITATION OPERATIONS , 6,246,394 7,174,898 SOLID WASTE MANAGEMENT 2,511,923 2,263,022 GOLF COURSE 93,341 53,917 TOTAL ENTERPRISE FUNDS 29,443,980 31,910,520 IINTERNAL SERVICE FUNDS I WORKERS COMP SELF INSURANCE 2,124,281 LIABILITY SELF-INSURANCE 1,331,904 HEALTH INSURANCE 2,674,714 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 1,171,663 2,945,620 983,010 1,904,927 1,146,100 4,273,326 88.795 21 1,968 88,200 6,409,623 3,577,165 10,350 62,869 872,394 715,000 1 ,124,073 183,995 41,082 42,652 6,000 671,404 49.800 15,141 0 6,000 13,000 14,189,531 20,525,157 2,206,050 7,960,745 1,635,483 95,893 32,423,328 2,086,026 1,047,883 861,000 0 1,860,000 828,000 5,400,000 57,000 233,710 0 6,042,631 256,983 12,000 0 742,682 701,469 985,400 17 1,800 28,205 45,596 0 688,111 50,000 15,000 3,400 14,000 8,700 10,056,667 20,945,004 1,730,365 6,859,054 1,784,312 230,000 31,548,755 2,223,498 1,494,712 1,013,268 0 1,889,696 1,808,000 5,010,367 14,921,387 12,062,909 13,439,541 NOTE: Estimated expenditures may exceed Adopted budget since they include prior year budget appropriations. 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 2,644,607 7,703,159 2,295,447 125,000 35,O 12,599 2,416,866 1,786,631 941,500 0 2,069,676 1,995,000 4,682,332 13,692,005 Exhibit 3-A 04-05 BUD TO 05-06 BUD 56.5% 42.2% -1 .O% 62.7% 0.0% -12.0% -19.5% 19.4% -39.1% 125.4% -17.9% -7.3% -40.0% 86.7% -100.0% -100.0% 158.6% 0.7% 6.2% 52.8% 12.3% 28.6% -45.7% 11.0% 8.7% 19.5% -7.1 % 9.5% 10.3% -6.5% 3.4% (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 FY05. Exhibit 3-A 2004-05 200405 2002-03 2003-04 ESTIMATED ADOPTED DEPARTMENT ACTUALS ACTUALS EXPENDITURES BUDGET REDEVELOPMENT 2005-06 04-05 BUD PROPOSED TO BUDGET 05-06 BUD 1,737,357 13.5% 94,396 -19.3% 278,517 -36.1% -32.0% 0.4% 1,530,922 VILLAGE OPERATIONS I DEBT SVC 2,286,766 1,977,189 3,890,472 VILLAGE LOWIMOD INCOME HSNG 107,647 51,324 77,746 117,005 SCCRA OPERATIONS I DEBT SVC 168,527 298,553 528,119 435,526 SCCRA LOWIMOD INCOME HSNG 16,497 22,661 41,934 54,293 TOTAL REDEVELOPMENT 2,579,437 2,349,727 4,538,271 2,137,746 TOTAL OPERATING FUNDS 164,087,345 141,631,144 152,982,008 147,647,217 158,371,778 7.3% Exhibit 3-8 CITY OF CARLSBAD CAPITAL FUNDS PROJECTED FUND BALANCES FOR FY 2004-2005 JULY 1.2004 ESTIMATED JUNE 30,2005 UNRESERVED ESTIMATED ESTIMATED DEBT SERVICE PROJECTED FUND BALANCE REVENUES EXPENDITURES LOANS & OTHER BALANCE BTDR - POINSElTIA LANEIAVIARA PKWY BTD#3 - CANNON ROAD WEST CFD #1 - CIWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5,13,16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN'G PUBLIC FACILITIES FEE REDEVELOPMENT VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNET/BIKE TRANSNET/HIGHWAY TRANSN ET/LOCAL TRANSN ET/STP WATER - MAJOR FACILITY WATER - RECYCLED WATER 5,832.41 1 1,157,268 38,080,792 19,930,878 6,903,575 48,073,313 1,600,000 0 84,540 14,716,199 13,040,113 783,731 1,894,709 1,142,313 51 1,094 721,969 8,420,796 36,602.314 0 254,995 6,466,942 32,217,913 20,482,974 78,467 8,793,432 108,094 1,875,529 8,189,943 299,076 9,675,797 6,826,292 1,402,844 46,190 6,314,839 5,396,033 1,849,277 3,887,920 1.474,322 2,520,000 1,394 4,393,744 31,321,290 100,601 52,352 107,035 754,780 404,776 2,159,031 7,463,545 0 199,425 634,443 2,157,370 3,003,410 0 1,50331 2 2,763 51,771 3,354,282 8,447 3,380,811 12,550,000 140,112 156.867 80,078 18,761,325 2,029,704 2,716,952 2,596,691 1.877,622 83.780 746,368 591,288 0 1,695,972 0 0 0 792.498 15,545,770 0 24,462 3,734.51 1 2,553.151 1,244,460 0 651,303 24,628 733,843 5,686,380 22,633 252,556 18,959,058 840,000 0 99,289 2,177,379 0 0 95,893 0 0 0 84,660 0 0 0 0 550.000 0 39,699 0 169,144 0 939,581 0 73,792 39,130 0 0 0 0 0 0 6,255,143 1,046,591 44,216,264 4.388,207 6,723,148 49,244,281 381,738 642,378 2,154 18,363,575 43,685,455 884.332 251,089 1,249,348 1,265,874 576,745 9,787,329 28,480,390 0 260,814 3,366.874 30,882,551 22,241,924 4,675 9,606.51 1 86,229 1,193,457 5,857,845 284,890 12,804,052 417,234 WATER - REPLACEMENT 16,777,433 2,813,109 3,553,052 0 16,037,490 TOTAL 31 1,542,902 99,309,316 85,255,064 5,108,567 320,488,587 Exhibit 3-8 CITY OF CARLSBAD CAPITAL FUNDS PROJECTED FUND BALANCES FOR PI 2001200f JULY 1,2005 PROJECTED ESTIMATED FUND BALANCE REVENUES BTD#2 - POINSETTIA LANE/AVIARA PKW 6,255,143 1,178,922 BTD#3 -CANNON ROAD WEST CFD #I -CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5,13,16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAING PUBLIC FACILITIES FEE REDEVELOPMENT VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETBIKE TRAN SN ET/H I G H WAY TRANSNEnLOCAL TRANSNETKTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 1,046,591 44,216,264 4,388,207 6,723.1 48 49,244,281 381,738 642,378 2,154 18,363,575 43,685,455 884,332 251,089 1,249,348 1,265,874 576,745 9,787,329 28,480,390 0 260.814 3,366,874 30,882,551 22,241,924 4,675 9,606,511 86,229 1,193,457 5,857,845 284,890 12,804,052 417,234 36,608 4.215.847 10,970,579 1,650,000 790,854 36,803,000 0 0 4,250,000 791,986 96,910 21.383 149,905 1,416,637 710,991 1,419,895 6,250.768 815.000 0 591,569 7,500,148 2,460,000 100,000 1,377,861 150,000 0 2,528,000 0 2,061,334 20,586,144 WATER - REPLACEMENT 16,037,490 10,160,723 TOTAL 320,488,587 119,085,066 2004-2005 CONTINUING NEW APPROPR. APPROPR. 349.884 485,447 137,862 5,329,093 3.161.248 10,462,590 24,358 565,240 0 960.845 39,425.840 0 99,892 0 0 219,100 4,096,796 22,096,142 0 260,350 1,257,113 11.726.268 11,382,471 0 3,108.099 81.293 1,024,189 3,401,142 0 3,365,821 7,249,413 0 0 3,079,362 0 992,000 7,909,200 36,803,000 0 0 2,999,850 2,890,840 0 0 0 0 0 0 9,007,500 715,000 0 0 5,687,615 3,098.326 100,000 1,288,430 150,000 0 2,600,000 0 1,352,600 7,250,000 9,079,649 2,773,005 139,350,145 88,696,728 2005-2006 TOTAL CIP APPROPR. 349,884 485,447 3,217,224 5,329,093 4,153,248 18,371,790 36,827,358 565,240 0 3,960,695 42,316,680 0 99,892 0 219.100 4,096,796 31,103,642 715.000 260,350 1,257.1 13 17,413,883 14,480,797 100,000 4,396,529 231,293 1,024,189 6,001,142 4,718,421 14,499,413 a a 11,852,654 228,046,873 JUNE 30,2006 PROJECTED BALANCE 7,084,181 597,752 45,214,887 10,029,693 4,219,900 31,663,345 357,380 77,138 2,154 18,652,880 2,160,761 981,241 172.581 1,399,253 2,68231 1 1.068.637 7,110,428 3,627,517 100,000 464 2,701,330 20,968,815 10,221,127 4,675 6,587,843 4,936 169,268 2,384,703 284,890 10,146,965 6,503,965 14,345,559 21 1,526,779 Exhibit 3-B CITY OF CARLSBAD CAPITAL FUNDS REVENUES ACTUAL AND ESTIMATED 2001 -2002 2002-2003 2003-2004 2004-2005 2005-2006 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FUND REVENUE REVENUE REVENUE REVENUE REVENUE BTD#2 - POINSETTIA LANElAVlARA PKW 3,850,521 926,437 2,082,42 1 1,402.844 1.178.922 BTD#3 - CANNON ROAD WEST CFD #I - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5.13,16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN'G PUBLIC FACILITIES FEE REDEVELOPMENT VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETBIKE TRANSNEnHlGHWAY TRANSNETlLOCAL TRANSNET/STP WATER - MAJOR FACILITY WATER - RECYCLED WATER 200,151 8,150,245 3,268,765 2,078.795 4,278,498 0 342,827 1,070,012 3,676,384 146,865 108,709 532,417 282,916 538,255 979,445 1,177.836 6,741,413 130,718 0 800,554 9,472,325 3.1 71,976 7,941 1,242,674 0 52,570 2508,640 70,313 2,546,628 16,722,716 404,647 6,500,700 14,050,018 1.851 ,I 18 36,905,004 600,000 208,914 244,735 4,114,930 1,098,283 64,865 245,976 1,520,779 475,468 9,593 739.807 6,436,638 18.552 146,305 1,308,913 4,855,445 3,115,527 302,968 1,762,612 11 3,689 1,205,103 2,878.396 15,933 2,192.288 6,869,702 4,724,143 4,691,448 1.785,785 558.927 0 361,048 52,028 3,946,110 10,915,062 47,366 125,004 514,627 30,554 35,582 1,241,432 5,224,343 7,547 245,691 557,429 1,813,446 4,198,825 78,572 975,812 110,471 14,861 4,120,403 1,479 3,064,296 9,009,877 46,190 6,314,839 5,396,033 1.049,277 3,887,920 1,474,322 2,520,000 1,394 4,393,744 31,321,290 100,601 52,352 107,035 754,780 404,776 2,159,031 7,463,545 0 199,425 634,443 2,157,370 3,003,410 0 1,503,512 2,763 51.771 3,354,282 8,447 3,380,811 12,550,000 36,608 4,215,847 10,970,579 1,650,000 790,854 36,803,000 0 0 4,250,000 791,986 96,910 21,383 149,905 1,416,637 7 10,991 1,419,895 6,250.768 815,000 0 591,569 7,500,148 2,460,000 100,000 1.377,861 150,000 0 2,528,000 0 2,061,334 20,586,144 WATER - REPLACEMENT 3,457,473 4,667,424 2,877,307 2,813,109 10,160,723 TOTAL CAPITAL FUNDS 79,153,030 106,047,656 63,411,896 99,309,316 119,085,066 Note: Revenues include interfund loans and transfers in. Exhibit 3-6 CITY OF CARLSBAD CAPITAL FUNDS BUDGET EXPENDITURE SCHEDULE 2002-2003 2003-2004 2004-2005 FUND ACTUAL ACTUAL ESTIMATED BTD#2 - POINSETTIA LANE/AVIARA PKW 1,089,644 1,371,674 980,112 BTD#3 - CANNON ROAD WEST 366,929 1,228,385 156,867 CFD #I - CITYWIDE 563,394 385,960 179,367 CFD #2 - RANCHO SANTA FE ROAD 6,849,077 11,832,529 20,938,704 GAS TAX 3,069,646 509,878 2,029,704 GENERAL CAPITAL CONST. 702,114 1,959,899 2,716,952 GOLF COURSE 93,341 394,043 2,692,584 GRANTS - FEDERAL 208,510 361,452 1,877,622 GRANTS - STATE 475,336 291,454 83,780 INFRASTRUCTURE REPLACEMENT 1,290,712 336,293 746,368 OTHER 199,220 593,270 675,948 PARK FEE ZONES 5.13,16 14,447 452 0 PARK-IN-LIEU NE 59,593 18,626 1,695,972 PARK-IN-LIEU NW 366,504 704,000 0 PARK-IN-LIEU SE 4,379,059 0 0 PARK-IN-LIEU SW 0 0 550,000 PLANNED LOCAL DRAIN'G 574,220 957,271 792,498 PUBLIC FACILITIES FEE 3,758.660 2,885,404 15,585,469 REDEVELOPMENT VILLAGE 53,069 877,633 0 REDEVELOPMENT SCCRDA 0 0 193,606 SEWER BENEFIT AREAS 1,219,939 937.912 3,73431 1 SEWER CONNECTION 2,337,279 2,212,199 3,492,732 SEWER REPLACEMENT 955,688 1,604,260 1,244,460 TDA 136,933 160,780 73,792 TRAFFIC IMPACT FEE 402,011 147,986 690,433 TRANSNETBIKE 70,104 45,776 24,628 TRANSNET/HIGHWAY 128,474 64,266 733,843 TRANSNETISTP 486,42 1 69,533 22,633 WATER - MAJOR FACILITY 1,839,043 2,720,043 252,556 WATER - RECYCLED WATER 8,325,047 10,516,313 18,959,058 WATER - REPLACEMENT 3,155,390 501,338 3,553,052 TOTAL CAPITAL FUNDS 44598,779 47,869,325 90,363,631 TRANSNEnLOCAL 1,030,601 4,180,696 5,686,380 2004-2005 2005-2006 2005-2006 CONTINUING NEW TOTAL CIP APPROPR. APPROPR. APPROPR. 349.884 0 349,884 485.447 137,862 5,329.093 3,161.248 10,462,590 24,358 565,240 0 960,845 39,425,840 0 99,892 0 0 21 9,100 4,096,796 22,096,142 0 260,350 1,257,113 11,726,268 11,382,471 0 3,108,099 81,293 1,024.1 89 3,401,142 0 3,365,821 7,249,413 0 3,079,362 0 992,000 7,909,200 36,803,000 0 0 2,999,850 2,890,840 0 0 0 0 0 0 9,007,500 715,000 0 0 5,687,615 3,098,326 100,000 1,288,430 150,000 0 2,600,000 0 1,352,600 7,250,000 485.447 3,217,224 5,329,093 4,153,248 18,371,790 36,827,358 565,240 0 3,960,695 42,316,680 0 99.892 0 0 219,100 4,096,796 31 ,I 03,642 715,000 260,350 1,257,113 17,413,883 14,480,797 100,000 4,396,529 231,293 1,024,189 6,001,142 0 4,718,421 14,499,413 9,079,649 2,773,005 11,852,654 139,350,145 88,696,728 228,046,873 Exhibit 3-8 CITY OF CARLSBAD CAPITAL FUNDS PROJECTED FUND BALANCES FOR FY 2004-200: JULY 1,2004 ESTIMATED JUNE 30,2005 UNRESERVED ESTIMATED ESTIMATED DEBT SERVICE PROJECTED FUND BALANCE REVENUES EXPENDITURES LOANS & OTHER BALANCE BTD#2 - POINSETTIA LANE/AVIARA PKW 5.832.41 1 1,402,844 140,112 84o;ooo 6,255,143 BTD#3 - CANNON ROAD WEST CFD #1 - CITYWIDE GAS TAX GENERAL CAPITAL CONST. GOLF COURSE CFD #2 - RANCHO SANTA FE ROAD GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5,13,16 PARK-IN-LIEU NW PARK-IN-LIEU NE PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN'G PUBLIC FACILITIES FEE REDEVELOPMENT VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETlBIKE TRANSNET/H IGH WAY TRANSNETlLOCAL TRANSNETlSTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 1,157,268 38,080,792 19,930,878 6,903,575 48,073,313 1,600,000 0 84,540 14,716,199 13,040,113 783,731 1,894,709 1,142,313 51 1,094 721,969 8,420,796 36,602,314 0 254,995 6,466,942 32,217,913 20,482,974 78,467 8,793,432 108,094 1,875,529 8.189.943 299,076 9,675,797 6,826,292 46,190 6,314,839 5,396,033 1,849,277 3,887,920 1,474,322 2,520,000 1,394 4,393,744 31,321,290 100,601 52,352 107,035 754.780 404,776 2,159,031 7,463,545 0 199,425 634,443 2,157,370 3,003.41 0 0 1,503,512 2,763 51,771 3,354,282 8.447 3,380,811 12,550,000 156,867 80,078 18,761,325 2,029,704 2,716,952 2,596,691 1,877,622 83,780 746,368 591,288 0 1,695,972 0 0 0 792,498 15,545,770 0 24,462 3,734.51 1 2,553,151 1,244,460 0 651,303 24,628 733,843 5,686,380 22,633 252,556 18,959,058 0 99,289 2,177,379 0 0 95,893 0 0 0 84,660 0 0 0 0 550,000 0 39,699 0 169,144 0 939,581 0 73,792 39,130 0 0 0 0 0 0 1,046,591 44,216,264 4,388,207 6,723,148 49,244,281 381,738 642,378 2,154 18,363.575 43,685,455 884.332 251,089 1,249,348 1,265,874 576,745 9,787,329 28,480,390 0 260,814 3,366.874 30382,551 22,241,924 4,675 9,606,511 86,229 1,193,457 5,857,845 284.890 12,804,052 417,234 WATER - REPLACEMENT 16,777,433 2,813,109 3,553,052 0 16,037,490 TOTAL 31 1,542.902 99,309,316 85,255,064 5,108,567 320,488,587 Exhibit 3-8 CITY OF CARLSBAD CAPITAL FUNDS PROJECTED FUND BALANCES FOR FY 2005-200E JULY 1,2005 PROJECTED ESTIMATED FUND BALANCE REVENUES BTD#2 - POINSElTIA LANE/AVIARA PKW? 6,255,143 1 .I 78.922 BTD#3 - CANNON ROAD WEST CFD #I - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5,13,16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAING PUBLIC FACILITIES FEE REDEVELOPMENT VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETBIKE TRANSNET/HIGHWAY TRANSN ET/LOCAL TRANSNETETP WATER - MAJOR FACILITY WATER - RECYCLED WATER 1,046,591 44,216,264 4,388,207 6,723,148 49,244,281 381,738 642,378 2,154 18,363,575 43,685,455 884,332 251,089 1,249,348 1,265,874 576,745 9,787,329 28,480,390 0 260,814 3,366,874 30,882,551 22,241,924 4,675 9,606,511 86,229 1,193,457 5,857.845 284,890 12,804,052 417,234 36,608 4,215.@47 10,970,579 1,650,000 790.854 36,803,000 0 0 4,250.000 791.986 96,910 21.383 149,905 1,416.637 710,991 1,419,895 6,250.768 815,000 0 591,569 7,500,148 2,460,000 100,000 1,377.861 150,000 0 2,528.000 0 2,061,334 20,586,144 WATER - REPLACEMENT 16,037,490 10,160,723 TOTAL 320,488,587 119,085,066 2004-2005 CONTINUING NEW APPROPR. APPROPR. 349.884 485,447 137,862 5,329,093 3,161,248 10,462,590 24,358 565,240 0 960,845 39,425,840 0 99,892 0 0 219,100 4,096,796 22,096,142 0 260,350 1,257,113 11,726,268 11,382,471 0 3,108,099 81,293 1.024.189 3,401,142 0 3,365,821 7,249,413 0 0 3,079,362 0 992,000 7,909,200 36,803,000 0 0 2,999,850 2,890,840 0 0 0 0 0 0 9,007,500 715,000 0 0 5,687,615 3,098,326 100,000 1,288,430 150,000 0 2,600,000 0 1,352,600 7,250,000 9,079,649 2,773,005 139,350,145 88.696,728 2005-2006 TOTAL CIP APPROPR. 349,884 485,447 3,2 17,224 5,329,093 4,153,248 18,371,790 36,827,358 565,240 0 3,960,695 42,316,680 0 99.892 0 0 21 9,100 4,096,796 31,103,642 715,000 260,350 1,257,113 17,413,883 14,480.797 100,000 4,396,529 231,293 1,024,189 6,001,142 0 4,7 18,421 14,499,413 11,852,654 228,046,873 JUNE 30, 2006 PROJECTED BALANCE 7,084,181 597,752 45,214,887 10,029,693 4,219,900 31,663,345 357,380 77,138 2,154 18,652,880 2,160,761 981,241 172,581 1,399,253 2.682.51 1 1,068,637 7,110,428 3.627.517 100,000 464 2,701,330 20,968,815 10,221,127 4,675 6,587,843 4,936 169.268 2,384,703 284.890 10,146,965 6,503,965 14,345,559 21 1,526,779 Exhibit 3-8 CITY OF CARLSBAD CAPITAL FUNDS REVENUES ACTUAL AND ESTIMATED 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FUND REV€ N UE REVENUE REVENUE REVENUE REVENUE BTD#2 - POINSElTIA LANUAVIARA PKW? 3,850,521 926,437 2,082,421 1,402,844 1,178,922 BTD#3 -CANNON ROAD WEST CFD #1 - CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5,13.16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN'G PUBLIC FACILITIES FEE REDEVELOPMENT VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETIBIKE TRANSNET/HlGHWAY TRANSNEnLOCAL TRANSNETISTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 200,151 8,150,245 3,268,765 2,078,795 4,278,498 0 342,827 1,070,012 3,67634 146,865 108,709 532,417 282,916 538,255 979,445 1,177,836 6,741,413 130.718 0 800.554 9,472,325 3,171,976 7,941 1.242,674 0 52,570 2,508,640 70,313 2,546,628 16,722,716 404,647 6,500,700 14,050,018 1,851,118 36,905,004 600,000 208,914 244,735 4,114,930 1,098,283 64,865 245,976 1,520,779 475,468 9,593 739,807 6,436,638 18,552 146,305 1,308,913 4.855.445 3,115527 302,968 1,762,612 11 3,689 1,205,103 2,878,396 15,933 2,192,288 6,869,702 4,724,143 4,691,448 1,785.785 558,927 0 361,048 52.028 3,946,110 10,915,062 47.366 125,004 514,627 30,554 35,582 1,241,432 5,224,343 7,547 245,691 557,429 1,813,446 4,198,825 78,572 975,812 11 0,471 14,861 4,120,403 1,479 3,064,296 9,009,877 46,190 6,314,839 5,396,033 1,849,277 3,887,920 1,474,322 2,520,000 1,394 4,393,744 31,321,290 100,601 52,352 107,035 754,780 404,776 2,159,031 7,463,545 0 199,425 634,443 2,157,370 3,003,410 0 1,503,512 2,763 51,771 3,354,282 8,447 3,380,811 12,550,000 36,608 4,215,847 10,970,579 1,650,000 ' 790.854 36,803,000 0 0 4,250,000 791.986 96,910 21,383 149,905 1,416,637 710,991 1,419,895 6,250,768 815,000 0 591,569 7,500,148 2,460,000 100,000 1,377,861 150,000 0 2,528,000 0 2,061,334 20,586,144 WATER - REPLACEMENT 3,457,473 4,667,424 2,877.307 2,813,109 10,160,723 TOTAL CAPITAL FUNDS 79,153,030 106,047,656 63.41 1,896 99,309,316 119,085,066 Note: Revenues include interfund loans and transfers in. Exhibit 3-8 CITY OF CARLSBAD CAPITAL FUNDS BUDGET EXPENDITURE SCHEDULE FUND BTD#2 - POlNSElTlA LANEIAVIARA PKWY BTD#3 - CANNON ROAD WEST CFD #I -CITYWIDE CFD #2 - RANCHO SANTA FE ROAD GAS TAX GENERAL CAPITAL CONST. GOLF COURSE GRANTS - FEDERAL GRANTS - STATE INFRASTRUCTURE REPLACEMENT OTHER PARK FEE ZONES 5,13,16 PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE PARK-IN-LIEU SW PLANNED LOCAL DRAIN’G PUBLIC FACILITIES FEE REDEVELOPMENT VILLAGE REDEVELOPMENT SCCRDA SEWER BENEFIT AREAS SEWER CONNECTION SEWER REPLACEMENT TDA TRAFFIC IMPACT FEE TRANSNETIBIKE TRANSNETIHIGHWAY TRANSNETILOCAL TRANSNETISTP WATER - MAJOR FACILITY WATER - RECYCLED WATER 2002-2003 ACTUAL 1,089,644 366,929 563,394 6,849,077 3,069,646 702,114 93,341 208,510 475,336 1,290,712 199,220 14.447 59,593 366,504 4,379,059 0 574,220 3,758,660 53,069 0 1,219,939 2,337,279 955,688 136,933 402,011 70,104 128,474 1,030,601 486,421 1,839,043 8,325.047 2003-2004 ACTUAL 1,371,674 1,228,385 385,960 11,832,529 509,878 1,959,899 394,043 361,452 291,454 336,293 593,270 452 18,626 704,000 0 0 957,271 2,885,404 877,633 0 937,912 2,212,199 1,604,260 160,780 147,986 45,776 64,266 4,180,696 69,533 2,720,043 10,516,313 2004-2005 ESTIMATED 980,112 156,867 179,367 20,938.704 2,029,704 2,716,952 2,692.584 1,877,622 83,780 746,368 675,948 0 1,695,972 0 0 550,000 792.498 15,585,469 0 193,606 3,7343 1 3,492,732 1,244,460 73,792 690,433 24,628 733,843 5,686,380 22,633 252,556 18,959,058 WATER - REPLACEMENT 3,155,390 501,338 3,553,052 44,598,779 47,869.325 90,363,631 TOTAL CAPITAL FUNDS 2004-2005 2005-2006 2005-2006 CONTl NU1 NG NEW TOTAL CIP APPROPR. APPROPR. APPROPR. 349,884 485,447 137,862 5,329,093 3,161,248 10,462,590 24.358 565,240 0 960,845 39,425,840 0 99,892 0 0 219,100 4,096,796 22,096,142 0 260,350 1,257,113 11,726,268 11,382,471 0 3,108,099 81,293 1,024,189 3,401,142 0 3,365,821 7,249,413 0 0 3,079,362 0 992,000 7,909,200 36,803,000 0 0 2,999,850 2,890,840 0 0 0 0 0 0 9,007,500 715,000 0 0 5,687,615 3,098,326 100,000 1,288,430 150,000 0 2,600,000 0 1,352,600 7,250,000 349,884 485,447 3,217,224 5,329,093 4,153,248 18,371,790 36,827,358 565,240 0 3,960,695 42,316.680 0 99,892 0 0 219,100 4,096,796 31,103,642 715,000 260,350 1,257,113 17,413,883 14,480,797 100,000 4,396,529 231,293 1,024,189 6,001,142 0 4,718,421 14,499.41 3 11,852,654 139,350,145 88,696,728 228,046,873 9,079,649 2,773,005 T -I- - r C a c c ? f e 5 I 1 1 + i L 4 I i s I L I L i 5 L i i T f f i E E 5 E I ? e f 5 5 4 i i I T 5 E E E F z E 2 3 f I: E E I L 2 i 4 b J ! E s B i a 1 : f I 1 i i 5 B i 5 i E T 1 E f 3 r 2 I i i ! 1 i Exhibit 3-C PERSONNEL ALLOCATIONS FOR 2004-05 AND 2005-06 FINAL PRELIMINARY 2005-06 BUDGET BUDGET REQUESTED MAJOR SERVICE AREA 2004-05 2005-06 CHANGES )POLICY AND LEADERSHIP GROUP I CITY COUNCIL CITY MANAGER COMMUNICATIONS CITY TREASURER CITY CLERK CITY ATTORNEY )ADMINISTRATIVE SERVICES I c I ADMINISTRATION RECORDSMANAGEMENT INFORMATION TECHNOLOGY FINANCE RISK MANAGEMENT HUMAN RESOURCES & WORKERS COMP PUBLIC SAFETY I POLICE FIRE COMMUNITY DEVELOPMENT i COMMUNITY DEVELOPMENT ADMINISTRATION BUILDING 8 CODE ENFORCEMENT ECONOMIC DEVELOPMENT & REAL PROPERTY MANAGEMENT GEOGRAPHIC INFORMATION SYSTEMS PLANNING HOUSING AND REDEVELOPMENT ICOMMUNITY SERVICES i LIBRARY CULTURAL ARTS RECREATION &SENIOR PROGRAMS )PUBLIC WORKS I ADMINISTRATION 8 ENVIRONMENTAL PROGRAMS ENGINEERING SERVICES GENERAL SERVICES MAINTENANCE 8 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 .OO 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 314 TIME LABOR FORCE 646.00 659.00 13.00 Exhibit 3-C PERSONNEL ALLOCATIONS FOR 2004-05 AND 2005-06 (Continued) SUMMARY OF REQUESTED LABOR FORCE BY CATEGORY Difference Full Time Personnel 640.00 653.00 13.00 3/4 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 2004105 2005106 LIMITED TERM EMPLOYEES 2004105 2005/06 Difference Legal Intern 0.00 0.50 0.50 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 4 RESOLUTION NO. 1247 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, CALIFORNIA, ADOPTING THE WATER DISTRICT FINAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM FOR 2005-06 ~~ WHEREAS, the Board of Directors of the Carlsbad Municipal Water District, California, has held such public hearings as are necessary prior to the adoption of the 2005-06 Operating and Capital Improvement Budgets. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District as follows: 1. 2. That the above recitations are true and correct. That certain documents now on file in the office of the Secretary entitled "City of Carlsbad, 2005-06 Operating Budget and 2005-06 to Buildout Capital Improvement Program - Preliminary," as amended in accordance with Exhibit 4-A attached hereto and incorporated by reference herein, is hereby adopted as the Operating and Capital Improvement Budgets for the Carlsbad Municipal Water District for the fiscal year 2005-06. 3. That the amounts reflected as estimated revenues for fiscal year 2005-06 are hereby adopted as the budgeted revenues for 2005-06. 4. That the amount designated as 2005-06 Budget in Exhibit 4-B is hereby appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided herein. 5. That total appropriations may only be increased or decreased by the Board of Directors by passage of a resolution amending the budget except as provided herein. 6. That the following controls are hereby placed on the use and transfers of budget funds: Ill Ill ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 2 of Resolution # 1247 Exhibit 4 A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Water Board or Executive Manager as described below. i. The Executive Manager may authorize all transfers of funds from account to account within the same fund in an amount up to $1 00,000 per transfer. ii. The Executive Manager may delegate the authority to make budget transfers. iii. The Executive Manager may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue which is designated for said specific purpose. iv. The Executive Manager may authorize increases in purchased water appropriations in an amount equal to the same percent that water sales exceed the amount of the original revenue estimate. B. The Board of Directors must authorize any increase in the number of authorized permanent personnel positions above the level identified in the final Budget. The Executive Manager may authorize the hiring of temporary or part time staff as necessary, within the limits imposed by the controls listed above. 7. That all appropriations and outstanding encumbrances as of June 30, 2005 are hereby continued into 2005-06 for such contracts and obligations. 8. All appropriations for Capital Improvement Projects remaining unexpended at June 30, 2005, are hereby appropriated for such capital projects for the 2005-06 fiscal year. JJI IJI JJI Ill JJI JJJ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 4 Page 3 of Resolution # 1247 PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors held on the 21s day of JUNE , 2005 by the following vote, to wit: AYES: Board Members Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ATTEST: Exhibit 4-A Exhibit 4-A i ! i 1 1 1 ! ! i ! ! I I I ! I ! ! I I , ! < f I I I I Exhibit 4-8 PROGRAM : WATER OPERATIONS FUND: WATER ENTERPRISE PROGRAM GROUP: MAINTENANCE & OPERATIONS ACCT NO. 5016310/5026310 2002-03 2003-04 2004-05 ACTUAL BUDGET PERSONNEL 2,459,420 2,761,099 2,833,259 MAINTENANCE & OPERATIONS 15,441,559 17,457,953 17,944,130 CAPITAL OUTLAY 53,028 0 0 ACTUAL 2005-06 BUDGET 3,179,073 19,645,205 46,700 PROGRAM GROUP DESCRIPTION: The Carlsbad Municipal Water District, a subsidiary district of the City of Carlsbad, provides potable water service to approximately 85 percent of the City (78,000 customers). The District purchases 100% of its potable water as treated water from the Metropolitan Water District and the San Diego County Water Authority. PROGRAM ACT IVlTl ES : Construction Maintenance 0 Provide water and wastewater maintenance, scheduled and performed to provide a high level of maintenance for infrastructure and maintained to ensure safe and efficient distribution and collection systems. Water Operations 0 Provide operation and maintenance of the potable and recycled water reservoirs, pumping, regulating, and disinfection activities; collect water quality samples to ensure compliance with State and federal regulations. Cross-Connection Control 0 Implement and enforce cross-connection control of potable and recycled water systems to ensure a safe supply of potable water, and compliance with State and federal regulations. Meter Services Collect water customer usage data for utility billing to ensure financial viability of the District through timely and accurate revenue collections; provide customer service for water utility customers; and assist construction and maintenance operations. PERFORMANCENVORKLOAD MEASURES: 0 Ninety-eight percent (98%) of bacteria samples free of coliform bacteria as adopted by the City’s Performance Measurement Team. The State requirement is that less than 5 percent of all samples collected during any month are total coliform-positive. Fiscal Number Total Total Percent ’fear Collected Positive Bacteria-Free Bacteria-Free 1998-99 1,428 3 1,425 99.0% 1999-00 1,615 1 1,614 99.9% 2001 -02 1,719 1 1,718 99.9% 2002-03 1,719 1 1,718 99.9% 2003-04 1,752 1 1,751 99.9% 2000-01 1,725 3 1,722 99.8% Exhibit 4-B PROGRAM: WATER OPERATIONS PAGE TWO FUND: WATER ENTERPRISE PROGRAM GROUP: MAINTENANCE & OPERATIONS ACCT NO. 5016310/5026310 PERFORMANCEANORKLOAD MEASURES (continued) Water Service Delivew 0 Annual number of hours per mile of distribution line that a water main is out of service should be zero. Fiscal Total Miles Hou rs/Mi le Year Hours Distribution Lines Distribution Line 1998-99 18 350 .05 1999-00 17 400 .04 2000-01 0 410 0.00 200 1-02 0 43 1 0.00 2002-03 0 431 0.00 2003-04 0 434 0.00 Water Cost Annual water loss not to exceed six percent as set by the California Department of Water Resources. Distribution system losses commonly range between 6% and 15%. The American Water Works Association recommends that the loss after treatment be maintained at 10% or less. Fiscal Water Year Loss 1998-99 4.87% 1999-00 5.36% 2000-01 4.29% 2001 -02 4.24% 2002-03 5.18% 2003-04 6.1% Total annual expenditures per acre-foot of water delivered. Fiscal Cost per Year Acre-Foot 1999-00 $795 2000-01 $808 2001 -02 $793 2002-03 $828 2003-04 $920 WORKLOAD STATISTICS: WATW OPBZATIONS-PERCH OF TOTAL WORKLOAD IN 2004 Other Mi% Qualltysanples Dely Cp's 22% System Maintemnce 0% SIGN I Fl CANT CHANGES : Two new full time positions have been added for the operation of the Recycled Water Plant. Several other adjustments were made to FTE allocations to more appropriately reflect time spent on Water Operations. PROGRAM: FINANCE FUND: GENERALlENTERPRlSE PROGRAM GROUP: FINANCE PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY Exhibit 4-B ACCT NO. 0011310 2002-03 2003-04 2004-05 2005-06 ACTUAL ACTUAL BUDGET BUDGET 1,806,241 1,965,932 2,296,241 2,447,707 1,042,290 1,064,209 769,494 798,895 862 24,804 76,500 0 SEWER ENTERPRISE TOTAL FUNDING IWATER ENTERPRISE I 242,7001 332,7001 380,000 I 325,800 [ 172,500 142,600 162,800 139,600 2,849,393 3,054,945 3,142,235 3,246,602 MISSION STATEMENT: Our mission is to ensure that the City of Carlsbad makes sound financial decisions. We take pride in accomplishing this mission by maintaining individual and departmental credibility: working together as a team while respecting each other's differences; and consistently striving to go above and beyond expectations. PROGRAM ACTlVlTl ES : Lonq-Ranqe Financial Planninq and Budqet Manaqement General Accountincl and Reporting Assessment DistricffCommunitv Facilities District (CFD) Administration Purchasing Prepare ten-year operating forecasts incorporating various "what-if" scenarios to facilitate decision-making for the City Council and City departments. Prepare and monitor annual capital and operating budgets to allocate resources in a cost-effective manner in alignment with the City Council's goals. Perform bi-annual review of all City fees and present recommendations for changes to the City Council. Prepare annual cost allocation plan to provide an accurate accounting of program costs. Accurately bill, collect, record, and report all City revenues including follow-up of delinquent accounts. Prepare checks for City employees and for service and commodity suppliers. Prepare and maintain finance records and documents in conformity with generally accepted accounting principles and applicable legal and contractual provisions. Prepare Comprehensive Annual Financial Report in conformity with generally accepted accounting principles. Provide the City Council and City management with timely monthly financial reports. Monitor City debt issues to ensure timely payment and identify refinancing opportunities. Provide continuing disclosure as required. Perform in-house internal control reviews as needed. Assist in evaluation and formation of new districts. Issue bonds for capital projects when required. Pay debt service and provide continuing disclosure information. Provide administration of CFDs and assessment districts as required by formation documents and State law. Issue and manage formal bid and quotation processes. Track and renew annual Commodity and service contracts. Develop and administer joint agency contracts. Assist City departments in the creation and administration of contracts. PROGRAM: FINANCE FUND: GENERALlENTERPRlSE PROGRAM GROUP: FINANCE FY2002 PROGRAM ACTIVITIES (continued): Receivina. Messenaer, and Mail Services 0 0 0 0 Act as shipping and receiving for the Faraday Administration Center. Direct disposal of surplus and lostlunclaimed property. Collect outgoing City mail and apply postage. Sort and distribute all incoming City mail. WORKLOAD AND PERFORMANCE INDICATORS: FY2003 FY2004 Exhibit 4-8 PAGE TWO 13 0 Average number of days to issue Monthly Financial Status Report ACCT NO. 001 131 0 12 14 0 Pieces of mail processed 1- I I 171,258 161,928 173,491 KEY GOALS FOR 2005-06: ToD-Qualitv Services 0 Provide more effective and efficient service to customers by improving the cash handling and refund processes. 0 Improve service to taxpayers by clarifying and streamlining the tax administration process. Financial Health 0 Plan for the strategic implementation of technology as it relates to the City’s integrated financial and personnel management systems. 0 Improve the effectiveness of, and streamline the development of, the annual Capital Improvement Program. 0 Improve the communication of financial information and keep up to date with industry standards by implementing the latest standards set by the Government Accounting Standards Board. SIGNIFICANT CHANGES: One fulltime FTE for a Purchasing Buyer has been transferred to the Public Works Construction Division to better align services and facilitate workflow. Exhibit 4-8 PROGRAM: ENGINEERING FUND: GENERALWATER & SEWER ENTERPRISE PROGRAM GROUP: ENGINE ERIN G SERVICES ACCT NO. 0015710/5>(15710 MA1 NTENANCE & OPERATIONS CAPITAL OUTLAY WORK PROGRAM: The Engineering Department supports the City Council's goals by providing high-quality service in transportation, water supply, sewer collection, storm water control, parks, and general engineering, project management, front counter operations, and construction inspection. The Engineering Department provides services to the public and other City departments through preparation and processing of planning, design, and construction documents and performing transportation studies. The department is also responsible for ensuring that private development and public improvements are properly designed, constructed, and inspected while maintaining public safety and the well- being of the community. PROGRAM ACT lVl TI ES : Administration Coordinate and direct all divisions to ensure accomplishment of City Council Goals and Objectives, provide administrative and clerical support to all divisions, ensure that the management reporting system is accurately maintained and generates all reports on schedule, and provide accurate records filed in a standardized and efficient manner. Provide comprehensive engineering input for all land use development applications; process engineering development plans and maps in a professional manner, maintaining high-quality and meeting production goals; ensure engineering questions related to land development are answered in a timely and friendly manner. Development Services Planninq and Proqrams Coordinate the preparation of the annual update to the City's Buildout Capital Improvement Program, update existing facility impact fee programs, and assist developers with the formation of finance districts to fund major public improvements. Administer and coordinate engineering activities for beach erosion, lagoon dredging, growth management monitoring, special districts program, and facility mapping. Design citywide capital improvement projects including domestic and recycled water systems, and sewer systems; perform markouts, water resource development, domestic water and recycled water systems, sewer systems, and water systems. For each of these programs, Design provides a variety of services including planning, water quality investigations, technical engineering assistance, mapping, and facility location. Review, investigate, analyze, and resolve a wide variety of transportation issues, concerns, complaints, and inquiries. Maintain records of collision reports, speed surveys, and traffic counts. Assist in maintaining optimum traffic signal operations. Review and/or design traffic control plans, signing and striping plans, and traffic signal plans; review development project submittals; provide interdepartmental coordination of various issues; and staff the Traffic Safety Commission. Desiqn Transportation PROGRAM: FUND: PROGRAM GROUP: PROGRAM ACTIVITIES E4 New Exhibit 4-8 ENGINEERING PAGE TWO GENERAWATER & SEWER ENTERPRISE E N GI N E E RI N G S E RVI C E S ACCT NO. 001 5710/5X15710 47,600,000 59,609,000 52,513.000 W,OoO.000 (con tin ued) : Construction Manaclement and Inspection 0 Perform construction management, administration, and inspection for private grading agreements, development improvement agreements, and capital improvement projects through the application of uniform practices and policies; ensure construction of high-quality improvements; and minimize inconvenience to the public while ensuring safe work sites. WORKLOAD STAT1 STI CS : Total Capital Improvement Program Appropriations KEY GOALS FOR 2005-06: TransDortation/Circulation 0 Continue work toward the construction of major road projects including: College Reach A, Cannon Reach 4, Faraday/Melrose, Rancho Santa Fe Road, and Poinsettia Lane Reach E. Parks/Open SDacelTrails 0 0 Complete permitting and design of Coastal Rail Trail in preparation for construction in FY2004. Jefferson Street Sidewalks under construction. Water and Sewer 0 Begin operation of the 4 MGD recycled water facility. 0 Complete construction of Mahr Reservoir Improvements and begin construction of Lake Calavera improvements. Complete construction of various lines, pump stations and lift stations as shown in the Capital Improvement Prog ra m . Begin work on new projects outlined in the Capital Improvement Program. Plannincl and Proclrams 0 0 Environmental Manaclement Update Storm Drain Master Plans per the growth management data and National Pollutant Discharge Elimination System (NPDES) requirements and determine if the current planned facilities and Planned Local Completion of GIS inventory for water, recycled water, curbs, sewers, street sign, sidewalks, and bridges. Completion of Traffic Impact Fee Update Completion of Drainage Master Plan. Planned local Drainage Area Fee program update. Establish Poinsettia Lane Reach “E Financing Program. Completion of Beach Attendance Economic Study. Establish College Blvd., Reach “A” Financing Program. Drainage Area fees are adequate for the existing rate of growth and future buildout. SIGN I Fl CANT CHANGES: Plancheck and Inspections are expected to fall moderately due to a decrease in the size and more in-house plan checking. of development projects 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 5 RESOLUTION NO. 399 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE OPERATING BUDGET OF THE REDEVELOPMENT AGENCY AND HOUSING AUTHORITY FOR FISCAL YEAR 2005-06 WHEREAS, the Housing and Redevelopment Commission of the City of Carlsbad, California (the Commission), has reviewed the operating budget for the Redevelopment Agency for Fiscal Year 2005-06; and WHEREAS, the Commission has reviewed the operating budget for the Housing Authority Section 8 Programs, for Fiscal Year 2005-06; and WHEREAS, public hearings have been held as necessary prior to the adoption of the final operating budgets. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad, California as follows: 1. That the above recitations are true and correct. 2. That certain documents now on file in the office of the City Clerk of the City of Carlsbad entitled "City of Carlsbad, 2005-06 Operating Budget and 2005-06 to Buildout Capital Improvement Program - Preliminary" as amended in accordance with Exhibit 5-A attached hereto and incorporated by reference herein, shall be and the same are hereby adopted as the Operating Budgets for the Carlsbad Redevelopment Agency and Housing Authority Section 8 Programs for the fiscal year 2005-06. 3. That the amounts reflected as estimated revenues for fiscal year 2005-06 are hereby adopted as the budgeted revenues for 2005-06. 4. That the amount designated as 2005-06 Budget in Exhibit 5-B is hereby appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided herein. Ill Ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 5 Page 2 of Resolution # 399 5. That the following controls are hereby placed on the use and transfers of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Commission or Executive Director as described below. i. The Executive Director may authorize all transfers of funds from account to account within the same fund in an amount up to $1 00,000 per transfer. ii. The Executive Director may delegate the authority to make budget transfers and adjustments. iii. The Executive Director may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Director is authorized to increase an appropriation for a specific purpose where said appropriation is offset by unbudgeted revenue which is designated for said specific purpose. B. The Commission must authorize any increase in the number of authorized permanent personnel positions above the level identified in the final Budget. The Executive Director may authorize the hiring of temporary or part time staff as necessary, within the limits imposed by the controls listed above. 6. That all appropriations and outstanding encumbrances as of June 30, 2005, are hereby continued into 2005-06 for such contracts and obligations. ill ill ill 111 Ill Ill Ill Ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 3 of Resolution # 399 Exhibit 5 That all appropriations for Capital Improvement Projects remaining unexpended at June 30, 2005, are hereby appropriated for such capital projects for the 2005-06 fiscal year. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing and Redevelopment Commission of the City of Carlsbad on the 21st day of JUNE 2005, by the following vote, to wit: AYES: Commissioners Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: None ATTEST: ef@lOND R: PAYCHETT, Secretary Exhibit 5-A Exhibit 5-B PROGRAM: REDEVELOPMENT OPERATIONS FUND: REDEVELOPMENT AGENCY PROGRAM GROUP: HOUSING & REDEVELOPMENT ACCT NO. 8013410/8023412 VILLAGE AREA PERSONNEL I 2002-03 I 2003-041 2004-051 2005-061 ACTUAL ACTUAL BUDGET BUDGET 162,604 149,282 178,619 166,689 MAINTENANCE & OPERATIONS CAPITAL OUTLAY MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Implementation of the Carlsbad Villaqe Redevelopment Master Plan Coordination of project development and permit processing. 0 Administration of the Parking-In-Lieu Fee Program. Property acquisition for future redevelopment projects and facilitation of new development. Communitv Relations and Public Relations Proqram Work with the Carlsbad Village Business Association and other business organizations to continue community awareness and public relations activities on behalf of the Redevelopment Agency. Continue implementation of the Village Beautification Program through coordination of maintenance efforts in the Village. Work with NCTD to resolve parking and land-use-related issues associated with the Village Commuter Rail Station and surrounding properties. PERFORMANCENVORKLOAD MEASURES: 0 0 Process 15 applications for redevelopment permits for improvements to existing structures or new construction projects. Process 10 sign permit applications. Process 5 preliminary review applications. Facilitate the development of at least one "special opportunity project" identified in the Village Redevelopment Master Plan. KEY GOALS FOR 2005-06: Financial Health 0 Process redevelopment permits for all types of projects within the Village Area that represent high-quality development or redevelopment of properties and buildings. Eliminate blighting conditions and influences in the Village Redevelopment Area through facilitation of private commercial and/or mixed-use development on North State Street. Balanced Communitv Development (also affects Financial Health goal) Implement the actions outlined in the Redevelopment Operations Strategy to address the land use and administration/organizational structure strategies following the July 2008 expiration of the Redevelopment Plan. SIGN I FlCANT CHANGES: None. Exhibit 5-B PROGRAM: LOW/MODERATE INCOME HOUSING FUND: REDEVELOPMENT AGENCY VILLAGE AREA PROGRAM GROUP: HOUSING AND REDEVELOPMENT ACCT NO. 8033420 PERSONNEL 2002-03 2003-04 2004-05 2005-06 ACTUAL ACTUAL BUDGET BUDGET 32,559 35,395 43,014 36,788 MAINTENANCE & OPERATIONS CAPITAL OUTLAY 27,904 47,184 15,929 73,991 57,608 0 0 0 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTlVl TI ES : Affordable Housina Proiect Processina Procedures 0 Affordable Housina Proiect Coordination 0 Continue development of affordable housing project processing procedures. Assist in the structure and implementation of affordable housing projects. Affordable Housina Education Proaram 0 Direct educational programs for citizens, businesses, and government agencies interested in affordable housing. PERFORMANCENVORKLOAD MEASURES: 0 0 Process at least 3 requests for financial assistance through the Housing Policy Team. Use existing low-income and moderate-income housing funds to develop property for an affordable housing project in, the Village Redevelopment Area. Participate in at least 3 outreach programs, professional conferences, andlor citizen and business groups on affordable housing. KEY GOALS FOR 2005-06: Top-Qualitv Services 0 Continue to assist private developers to provide affordable housing as required by the lnclusionary Housing Ordinance. SIGNIFICANT CHANGES : None. Exhibit 5-B PROGRAM: REDEVELOPMENT OPERATIONS FUND: REDEVELOPMENT AGENCY PROGRAM GROUP: HOUSING AND REDEVELOPMENT ACCT NO. 8103420/8113412 SOUTH CARLSBAD AREA 2002-03 2003-04 2004-05 ACTUAL ACTUAL BUDGET PERSONNEL 64,241 45,942 81,198 2005-06 BUDGET 75,688 MAINTENANCE & OPERATIONS 1 04,130 252,611 3 54,328 I 1561 O1 O1 Ol CAPITAL OUTLAY 202,829 GRAND TOTAL MISSION STATEMENT: 168.5271 298.5531 435.5261 278.51 7 Helping people achieve their dreams P ROG RAM ACT l VlT I E S : Implement Redevelopment Plan for South Carlsbad Coastal Redevelopment Area Provide funding for the potential realignment of Carlsbad Boulevard, which may yield excess property that could provide for public recreational facilities andlor development of cultural facilities or other public facilities. Revitalize, redevelop, andlor generally clean up the Ponto Area. Enhance commercial and recreational functionslactivities in the Redevelopment Area and increase parking and open space amenities. PERFORMANCEMORKLOAD MEASURES: Implement land use vision for planning area three. KEY GOALS FOR 2005-06: Balanced Community Development Facilitate the development of one project identified by the vision study for planning area three. SIGN I Fl CANT CHANGES : The assessed values in the South Carlsbad Coastal Redevelopment Area declined from $398 million in FY04 to $278 million in FY05 and are expected to decline further in FY06 to less than the original values when the redevelopment area was formed. This reduction in assessed values caused current values to drop below base values for FY 2005-06. The decline is mainly due to the lower values assigned to the Encina Power plant. Since the revenue to the area is based on the excess of the current assessed values over the original assessed values, it is likely that the South Carlsbad Area will not receive any property tax revenue in FY 2005-06. Budgeted expenses will come from accumulated balances. Exhibit 5-B PROGRAM: LOW/MODERATE INCOME HOUSING FUND: REDEVELOPMENT AGENCY SOUTH CARLSBAD AREA PROGRAM GROUP: HOUSING AND REDEVELOPMENT ACCT NO. 8123420 PERSONNEL 2002-03 I 2003-041 2004-051 2005-061 ACTUAL ACTUAL BUDGET BUDGET 13,069 14,759 31,944 2 1,694 MAINTENANCE & OPERATIONS CAPITAL OUTLAY MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTIVITIES: Implement Citvwide Affordable Housina Proarams Affordable Housing Education Activities. Affordable Housing Project Coordination for lnclusionary Housing Development. Development of affordable housing programs. Facilitation of development of new affordable housing projects. PERFORMANCENVORKLOAD MEASURES: KEY GOALS FOR 2005-06: Utilize low-income and moderate-income housing funds to assist with the development and/or construction of at least one (1) new affordable housing project within the city limits of Carlsbad. Develop Housing Plan for South Carlsbad Coastal Redevelopment Area. Balanced Communitv Development Continue to assist private developers to provide affordable housing as required by the City’s lnclusionary Housing Ordinance. Implement affordable housing programs that serve to enhance the jobs/housing balance within the community. SIGN IFICANT CHANGES : None. Exhibit 5-8 PROGRAM: RENTAL ASSISTANCE FUND: HUD SECTION 8 HOUSING PROGRAM GROUP: HOUSING & REDEVELOPMENT ACCT NO. 1903401 2002-03 2003-04 ACTUAL ACTUAL PERSONNEL 31 1,937 335,033 MAINTENANCE & OPERATIONS 4,705,629 5,389,834 CAPITAL OUTLAY 1,531 0 2004-05 2005-06 BUDGET BUDGET 378,117 340,410 5,664,514 5,640,505 0 0 MISSION STATEMENT: Helping people achieve their dreams. PROGRAM ACTlVlTl ES : Section 8 Tenant-Based Rental Assistance Provide federal funding to subsidize rents for extremely low-income and very low-income households. Assist low-income households in the community to access rental housing that is decent, safe, and sanitary. Ensure program is being administered in compliance with federal regulations, federal guidelines, the Carlsbad Administrative Plan, and the Public Housing Agency (PHA) Plan. Achieve and maintain a lease rate that effectively utilizes funding allocation. Familv Self-Sufficiencv Designed to enable unemployed, under-employed or under-educated low-income families to achieve economic independence from welfare. Assist families in identifying barriers to becoming self-sufficient. Provide guidance to the family to establish a five-year goal and plan. Coordinate needed support services and act as an advocate on behalf of the client. PERFORMANCENVORKLOAD MEASURES: Maintain a Section Eight Management Assessment Program (SEMAP) ranking of “standard performer” or “high performer.” Achieve and maintain a lease rate utilizing 98% of allocated funds. Update and revise Administrative Plan to adopt changes in federal regulations. Expand rental assistance knowledge by conducting community workshops, providing owner and participant newsletters, and conducting owner outreach presentations. SIGNIFICANT CHANGES: No new positions, however individuals were reallocated between programs within the program group to better reflect current workloads. Less staff time is now spent on the Section 8 program, which decreased the personnel budget in this program for 2005-06. Funding from the Housing & Urban Development Department for the Section 8 program was cut for the 2005-06 budget year. No new households will be added to the program and other measures may be taken to reduce the program costs. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 6 RESOLUTION NO. 2005-197 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING THE ARTICLE XlllB OF THE CALIFORNIA STATE CONSTITUTION AND STATE LAW 2005-06 APPROPRIATION LIMIT AS REQUIRED BY WHEREAS, Article XlllB of the California State Constitution requires that governments annually establish a limit on the appropriation of proceeds of taxes; and WHEREAS, State law requires that this limit be presented to the governing body of each entity each fiscal year; and WHEREAS, State law also requires that this limit be published in a newspaper of general circulation to allow public response to the limit as adopted. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the City Council of the City of Carlsbad, California, does hereby establish and adopt the 2005-06 appropriation limit of one hundred fifty-three million, nine hundred thirty- eight thousand, forty-seven dollars ($1 53,938,047) as computed in Exhibit 6-A attached hereto. 2. That the City Clerk is directed to publish this Resolution in a newspaper of general circulation. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the 21st day of JUNE , 2005, by the following vote, to wit: AYES: NOES: None ABSENT: None Council Members Lewis, Hall, Kulchin, Packard, Sigafoose ATTEST: -- LORRAINE M. OD, City CI rk (SEAL) Exhibit 6-A CITY OF CARLSBAD GANN APPROPRIATIONS LIMIT The Appropriations Limitation imposed by Proposition 4 and modified by Proposition 11 1 creates a restriction on the amount of revenue which can be appropriated in any fiscal year. The revenues which are subject to the Limitation are those considered "proceeds of taxes." The basis for calculating the Limit began in fiscal year 1978-79 and is increased based on population growth and inflation. The major change made by Proposition 111 allows the City to annually choose among the following options for calculating its Gann Limit: 9 9 > 9 Population growth of Carlsbad, OR Population growth within San Diego County, AND Growth in California per capita income, OR Growth in non-residential assessed valuation due to new construction in the City. The factors used to calculate the 2005-06 Limit were: 9 9 Population growth in Carlsbad, AND Growth in California per capita income The formula is outlined below: 2004-05 Expenditure Limit $1 42,508,838 % Carlsbad Population Growth Growth in California per capita income Net Increase Factor 2005-06 Limit (2004-05 Limit X Factor) Current Appropriation of Proceeds of Taxes (Subject to the Limit) 1.0262 X 1.0526 1.0802 $153,938,047 $87,065,832 The spending limit for the City of Carlsbad for 2005-06 is $153.9 million, with appropriations of "proceeds of taxes" of $87.1 million. The result of the calculation provides the City with an operating margin of $66.8 million. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 7 RESOLUTION NO. 2005-198 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING CHANGES TO THE MASTER FEE SCHEDULE ~ WHEREAS, the City Council of the City of Carlsbad has the authority to establish fees for City services; and WHEREAS, from time-to-time said fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for City services; and WHEREAS, the City Council has determined the cost of providing general and development-related services; and WHEREAS, the City Council finds it necessary to recover the costs for City services; and WHEREAS, the City Council has held the necessary public hearing and allowed for public comment on the establishment of said fees. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the changes to the Master Fee Schedule for the fees shown in Exhibit 7- A-H, attached hereto, are hereby adopted. 2. That all other general City fees and development-related fees as shown in Resolution 2004-1 83, except as specifically amended, shall remain in full force and effect. Ill Ill Ill Ill Ill Ill Ill Ill I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 7 3. This resolution shall become effective on August 1, 2005 for General City fees and September 01, 2005 for the Development-related fees. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 21st day of JUNE , 2005 by the following vote, to wit: AYES: NOES: None Council Members Lewis, Hall, Kulchin, Packard, Sigafoose ABSENT: None ATTEST (SEAL) Exhibit 7-A 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, for all recreation usages other than regular operation hours. For the Swim Complex, if clean up or m required, a staffing fee of $20 per hour per staff is charged. required uards are CATEGORIES FACILlTIES A B C D E F -S r€ Pi ($500 deposit required) Day Use N/C N/C 15 20 25 30 Light (Night) Use N/C 5 25 30 35 40 CLINICS/C AMPS A B C D E F Field N/C 35 510 15 20 25 Lights N/C 910 15 20 25 30 TOURNAMENTS ($500 deposit required) A B C D E F Field N/C N/C 510 -515 720 325 Lights N/C 419 15 20 25 30 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. n-residents when a rental includes an inflatable ast us chedule a Other General Fee Changes Current Fee Proposed Fee Cancellation Check Processing Fee new $20 Exhibit 7-A 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 . Examples: Boy’s and Girl’s Club &, Property Management Associations, €a&ba&h ., CM 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. Examples: North County AA, YMCA, resident religious and political groups, Mira Costa Resident commercial, business, profit making organization, non-resident private party activities 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-PROFlT USER, THE ORGANIZATION MUST MEET ALL OF THE FOLLOWING CRITERIA: 1. The organization must be registered as a not-for-profit corporation with the State of California; or, if not registered with the State, must be a Carlsbad Chapter and have a constitution or by-laws 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 7-8 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 1-00 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 7-C 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 % increase 19.8% 19.6% 36.4% 16.3% 7.9% 7.9% Zone Average $742 $862 SD Region Ave. $64 1 $744 $1 6 $70 $1 29 $1 41 Exhibit 7-D Size of Bin Cost-Current Cost-Proposed SOLID WASTE SERVICE FEES RECOMMENDED FEE INCREASES JUNE 2005 Residential Service Rates: Current Proposed Monthly Curbside Service: $1 6.47 $1 7.50 Monthly Backyard Service: $21.65 $23.00 Commercial Service Rates: 2Yd 3Yd 4Yd 5Yd 6Yd $29.93 $40.29 $48.34 $56.40 $64.46 $32.08 $43.19 $51.82 $60.46 $69.10 I Added Cost Der Bin Dump --I 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) rt Exhibit 7-D Number of 3yd Bins 1 lx per 2x per Week Week Current $84.86 $150.29 2 I (Prouosedl $181.21 I $322.21 I Proposed $90.97 $16 1.1 1 Current $169.04 $300.57 3 Current $253.55 $450.86 Proposed $271.81 $483.32 No. Bins 1 2 Number of Pick-ups per Week 1 2 3 4 5 Current $58.70 $98.99 $139.27 $179.56 $214.09 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 Pronosed $125.85 $212.23 $298.60 $384.97 $459.00 Exhibit 7-E Uniform Sewer Rates Recommended Unit Cost I Uniform Rate ($/hcf of water) Group I Residential Single Family Multi-Family' $1.85 Mobile Home' Group II Commercial Group Ill Commercial Group IV Commercial * Group V Institutional $1.85 $1.53 $2.01 $3.17 Schools per ADA3 Elementary * Junior * High Boarding * __- $0.20 $0.39 $0.59 $2.92 -_- $0.21 $0.41 $0.61 -_- $3.04 (based on volume and -_- wastewater strengths) Group VI Large Volume (based on volume and wastewater strengths) 1 * Non-residential wastewater flow is 95 percent of metered water use. Wastewater flow is 90 percent of metered water use. Schools: assumes a 200-day working year; ADA: average daily attendance. * Denotes charge per student based on ADA. CITY OF CARLSBAD FEE SCHEDULE DEVELOPMENT RELATED SERVICE FEES JUNE 2005 Exhibit 7-F Fee 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) CDP Emergency CDP Exemption Coastal Dev. Permit - Non-RDA - Minor Coastal Dev. Permit- Non-RES (fee plus $.lo per square foot) Coastal Development Permit - Major & Minor RP's Conditional Use Permit (25% discount may apply) CUP - Amendment CUP - Bio 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 - All Others 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 - FocusedBupplemental (+ 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 Current I Recommended1 Unit Fee I Fee I cost 970 1070 1,406 760 510 500 510 790 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 65 835 560 550 560 870 3,135 680 1,140 41 0 570 900 1,880 2,950 370 200 740 835 560 3,735 2,010 700 755 175 350 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 2,103 1,042 1,397 949 1,039 3,240 763 1,470 822 1,063 1,198 1,898 3,473 438 240 925 3,200 1,281 4,317 2,316 3,939 936 1,829 1,835 1,425 46 700 1,785 1,020 19,465 2,453 11,649 303 4,228 6,175 1,285 2,215 746 2,641 1 76 96 $ Subsidy 336 1,268 482 847 389 169 105 83 330 412 493 298 18 523 68 40 185 2,365 721 582 306 3,239 181 1,654 1,485 1,345 31 155 345 230 2,765 363 9 23 673 ,050 250 125 161 841 76 21 June 2005 lozf CITY OF CARLSBAD FEE SCHEDULE DEVELOPMENT RELATED SERVICE FEES JUNE 2005 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 I” 20 Project Planner or 7 hrs Project Engineer) Neighborhood Improvement Agreements PD/Condo - Residential Additional Permit PDICondo - 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 Extension (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 - Utility (+ actual costs for Insp. and Sr. Imp. time) Right of Way Permit - Utility (By Contract) Satellite Antenna Permit Secured Agreement Pmc. Extension Secured Agreement Proc. Replace -+ improvement plan revision fees if required Sidewalk Sign/Outdoor Display Permit, Redevelopment Area Sign Program Sign Prcgram Permit, Redevelopment Area Sign Program Permit Amendment, Redevelopment Area Site Development Plan - Res. c- 4 unitshots Exhibit 7-F ~ ~~~~~~ Fee Description June 2005 Current Recommended Unit TLqT 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 91 0 250 55 3,720 5,381 39,02‘ 7,02t 4,267 509 422 306 653 1,490 5,524 7,966 1,731 6,188 8,477 2,793 8,734 13,381 2,840 7,599 12,326 12,326 2,081 1,019 1,762 1,362 7,557 4,037 658 1,238 1,958 885 757 675 768 221 41 1 2,318 5,316 12,319 446 1,942 4,749 381 1,024 1,024 405 352 659 285 1,076 602 358 4,018 $ Subsidy 6 4,234 1,106 2,877 109 1 02 1 38 135 374 1,016 20 1 653 987 283 1,774 2,386 330 639 1,331 8,451 34 1 184 402 807 1,222 592 3 653 1,373 720 187 40 43 26 31 1,948 3,946 9,811 301 1,452 3,544 91 409 409 55 2 24 240 166 352 303 298 CITY OF CARLSBAD FEE SCHEDULE DEVELOPMENT RELATED SERVICE FEES JUNE 2005 Current Fee Fee Description 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 eng) Specific Plan (+ mr after 1st 200 hrs project planner or 60 hrs project engineer) Street Name Change Street Vacation - Regular Street Vacation - Summary Structure Relocation - Use Planning Commission Determination Substantial Conformance Exhibit Rev. Tentative Map Revision - 5- 49 UnitdLots + $40ea 5+ (whichever is greater) Tentative Map Revision - 50+ UnitdLots + $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 Lotdunits + $1 1Oea. > 5 (whichever is greater) Tentative Tract Map - 50+ LotdUnits + $15ea 49+ (whichever is greater) Tentative Tract Map Extension- 5 to 49 Final Tract Map (+ $5 per Acre) Third Party Review - plus consultant cost Variance - Administrative Redevelopment Variance - Redevelopment Variance - Engineering Variance - Planning Variance - Administrative (Planning) Variance - Administrative (Planning) Recreational Vehicle Admin. Varianc 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. Recommended Unit Fee 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 61 5 155 350 630 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 1 0,480 3,648 1,387 3,031 10,607 18,817 2,894 6,543 724 539 1,435 713 3,185 713 675 4,641 6,336 5,995 60) 651 210 Exhibit 7-F $ Subsidy 1,521 139 699 630 667 483 791 536 1,356 3,056 97 1 315 687 7 84 3,136 4,145 483 157 6 3,787 5,112 489 318 109 384 1,085 83 830 83 45 561 801 730 145 (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 Exhibit 7-F 'IRE PROTECTION SYSTEM INSTALLA iutomatic Sprinkler Systems - Residential System - Commercial System - 1st riser 1st floor - Tenant Improvement - ea add'l riser -ire Alarm Systems - 1 to 25 Devices - 26 or more Devices Ither Fixed Fire Systems - Hood and Duct - Halon - Special Chemical Agent - Standpipe - Paint Spray Booth Repeated Inspection on new construction FIRE PROTECTION SYSTEM INSTALLA' 4utomatic 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 3ther Fixed Fire Systems - Hood and Duct , - Halon - Special Chemical Agent - Standpipe - Paint Spray Booth qepeated Inspection on new construction 3N FEES - Current Schedule #l Plan Inspection Fees Total Review No. I cost Fee $55 55 $50 minimum 90 55 60 55 70 70 3 at $55 each $220 1,150 565 1 at 60 each 115 1 at 2 at $55 each 55 each $1 05 200 1 at 60 each 115 2 at 50 each 160 1 at 60 each 115 2 at 55 each 180 2 at 55 each 180 1 at 65 each 65 ON FEES Recommended Schedule #I Plan Inspection Fees Total I Review No. I cost Fee 1 $60 60 3 at $60 each $240 1,150 565 1 at 60 each 120 $55 minimum 1 at $60 each $115 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 195 2 at 60 each 195 1 at 70 each 70 June 2005 Exhibit 7-F ZRADJNG PERMIT APPLICATlON FEES - Current 4mount Fee 100 CY* or less $320 Schedule #2 101 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 $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 SRADING PERMIT APPLICATION FEES - Recommended imount Fee Schedule #2 _. . __ 100 CY or less $350 101 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 Exhibit 7-F GRADING PERMIT FEES = Current Schedule #3 Amount Fee 100 Cubic Yards (CY) or less $320 101 to 1 .ooo CY 1,001 to 10,000 CY 10,001 to 100,000 CY 100,001 to 200,000 CY 200,001 to 400,000 CY ~00,000 to 1,000,000 CY $320 for the first 100 CY plus $65 for each additional 100 CY or fraction thereof. $905 for the first 1,000 CY plus $65 for each additional 1,000 CY or fraction thereof, $1,490 for the first 10,000 CY plus $125 for each additional 10,000 CY or fraction thereof. $2,615 for the first 100,000 CY plus $125 for each additional 10,000 CY or fraction thereof. $3,865 for the first 200,000 CY plus $190 for each additional 10,000 CY or fraction thereof. $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. SRADING PERMIT FEES - Recommended \mount Fee IO0 Cubic Yards (CY) or less $350 Schedule #3 101 to 1,000 CY I ,001 to 10,000 CY 10,001 to 100,000 CY I00,001 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. I,OOO,OOl CY or more $1 4,700 for the first 1,000,000 CY plus $685 for each additional 100,000 CY or fraction thereof. \ y'7 June 2005 Exhibit 7-F IMPROVEMENT CONSTRUCTION INSPECTION FEES - Current Cost of Improvements Fee $0 to $20,000 Schedule #4 5.5% - $315 Minimum $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 $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 $1 00,000 plus $100 for each additional $1 0,000 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 $1,000,001 or more $12,525 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 F100,OOl to $250,000 §250,001 to $500,000 §500,001 to $1,000,000 61,000,001 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 $1 0,000 or fraction thereof $8,075 for the first $500,000 plus $1 05 for each additional $1 0,000 or fraction thereof $1 3,780 for the first $1,000,000 plus $1 05 for each additional $1 0,000 or fraction thereof June 2005 Exhibit 7-F IMPROVEMENT PLAN REVIEW FEES - Current Cost of Improvements Fee $0 to $20,000 $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 Over $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.) IMPROVEMENT PLAN REVIEW FEES - Recommended Cost of Improvements Fee $0 to $20,000 $20,001 to $50,000 Schedule #5 $1,015 plus 5% of value of improvements $1,290 plus 4% of value of improvements - $2,440 minimum $1,660 plus 3% of value of improvements - $4,040 minimum $1,875 plus 2.5% of value of improvements - $6,120 minimum $5,670 plus 2% of value of improvements - $1 3,250 minimum $9,995 plus 1.5% of value of improvements - $20,660 minimum $10,250 plus 0.75% of value of improvements - $31,980 minimum Schedule #5 $1,115 plus 5% of value of improvements $1,420 plus 4% of value of improvements - $2,440 minimum )$SO,OOl to $1 00,000 $100,001 to $250,000 $1,825 plus 3% of value of improvements - $4,040 minimum $2,065 plus 2.5% of value of improvements - $6,120 minimum $250,001 to $500,000 $500,001 to $1,000,000 Over $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.) $6,240 plus 2% of value of improvements - $1 3,250 minimum $1 0,995 plus 1.5% of value of improvements - $20,660 minimum $1 1,275 plus 0.75% of value of improvements - $31,980 minimum June2005 ' Exhibit 7-F 'LANDSCAPE INSPECTION FEES - Recommended Cost of Improvements Fee $0 to $20,000 $490 Schedule #7 (LANDSCAPE INSPECTION FEES - Current Schedule #7 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 $750,000 $630 for the first $20,000 of improvements plus $20 for each additional $1 0,000 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 $100,000 of improvements plus $150 for each additional $1 00,000 or fraction thereof $1,520 for the first $250,000 of improvements plus $150 for each additional $1 00,000 or fraction thereof $2,400 for the first $750,000 of improvements plus $150 for each additional $1 00,000 or fraction thereof 1$20,001 to $50,000 ($50,001 to $100,000 $1 00,001 to$250,000 $250,001 to $750,000 1$750,001 and Over $695 for the first $20,000 of improvements plus $20 for each additional $10,000 or fraction thereof $975 for the first $50,000 of improvements plus $20 for each additional $10,000 or fraction thereof $1,390 for the first $100,000 of improvements plus $150 for each additional $100,000 or fraction thereof $1,670 for the first $250,000 of improvements plus $150 for each additional $100,000 or fraction thereof $2,640 for the first $750,000 of improvements plus $150 for each additional $100,000 or fraction thereof \ June 2005 Exhibit 7-F $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 'Over $1,000,000 $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 0.1 5% over $250,000 $4,175 plus 0.1 % over $500,000 $6,325 plus 0.07% over $1,000,000 LANDSCAPE PLAN CHECK FEES - Current Cost of Improvements Fee $0 to $20,000 $445 Schedule #8 LANDSCAPE PLAN CHECK FEES - Recommended Cost of Improvements Fee $0 to $20,000 490 Schedule #8 $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 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 +'\ June 2005 Exhibit 7-F BUILDING PERMIT FEES Schedule #9 (55% of the 2001 Uniform Building Code Table 1-A fee schedule) Fees are based on the April 2005, Building Valuation Multipliers published by the San Diego 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 $1 00.00, or fraction thereof, to and including $2,000.00 $38.09 for the first $2,000.00 plus $7.70 for $2,001 .OO to $25,000.00 each additional $1,000.00, or fraction thereof, to and including $25,000.00 $215.19 for the first $25,000.00 plus $5.56 for each additional $1,000.00, or fraction thereof, to and including $50,000.00 $354.06 for the first $50,000.00 plus $3.85 for each additional $1,000.00, or fraction $25,001 .OO to $50,000.00 $50,001 .OO to $1 00,000.00 thereof, to and including $100,000.00 $546.56 for the first $100,000.00 plus $3.08 for $100,001 .OO to $500,000.00 I each additional $1,000.00, or fraction thereof, to and including $500,000.00 $1 778.56 for the first $500,000.00 plus $2.61 $500,001 .OO to $1,000,000.00 I for each additional $1,000.00, or fraction thereof, to and including $1,000,000.00 $3,084.81 for the first $1,000,000.00 plus $1,000,001 .OO and up $2.01 for each additional $1,000.00 or fraction thereof Other Inspections and Fees: 1. Inspections outside of normal business hours $60.00 per hour* (minimum charge - 2 hours) 2. 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) 4. 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. Notwithstanding other provisions of this section, the building permit fee for factory built housing shall be 25% of the fee shown in Schedule #9, and the plan check fee shall be 65% of the building permit fee. June 2005 \\?'" Exhibit 7-G I 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 1,825 1,564 (The Park Fee ordinance establishs a method of determining park land values in each quadrant Fee Per Unit Quadrant 3strict 1 - NW Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home Iistrict 2 - NE Single Family Detached & Duplex Attached (4 units or less) Attached (5 units or more) Mobile Home listrict 3 - SW Single Family Detached & 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 Acre $977,000 732,000 732,000 732,000 $7,649 6,414 6,190 4,934 5,728 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 *Assumes new density per dwelling unit of the parkland dedication formula presented to Council on June 7, June 2005 ExhibR 7-H Fee per gross acre Area I Basin Name CITY OF CARLSBAD PROPOSED REVISIONS TO THE MASTER FEE SCHEDULES JUNE 2005 Current Revised Low High Low High Runoff Runoff Runoff Runoff 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 Tax on New Constructionmobile homes $1,582 $1,721 $139 A Buena Vista Lagwn B Agua Hedionda Lagwn C Encinas Creek D Batiquitos Lagoon Traffic Impact -- Current Revised Chanae $1.866 $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 ~ Traffic Impact Fee ~ Residnrl Cost Per Trip (Out of CFD) $101 $1 07 6 Traffic Impact Fee ~ Residnrl Cost Per Tnp (Inside CFD) 66 70 4 Traffic Impact Fee. Commrc'Vlndust Cost Per Trip (Out of CFD) 41 43 2 Traffic Impact Fee ~ Commrc'Vlndust Cost Per Trip (Inside CFD) 26 28 2 Sewer Benefit Area Fees -- Current Revised Chanae Area A Area B Area C Area D Area E Area F Area G Area H Area I Area J Area K Area L $ 384 675 1.675 1.678 2,475 2.488 105 808 392 1.351 2.725 1.067 ~~ 5 418 735 1,799 1.803 2.658 2,673 114 859 427 1,470 2.965 1,161 $ 34 60 1 24 125 183 165 9 51 35 119 240 94 Bridge 8 Thoroughfare District #2 Fees Current Revised Change Zone 5 $246 $262 $16 Zone 20 1.278 1,359 81 Zone 21 1,032 1,097 65 Bridge 8 Thoroughfare District #3 Fees Current Revised Change Fee per ADT $140 $152 $12 Agricultural Mitigation Fees Current Revised Change $9.744 $10,716 $974 Water Connection Fees Current Revised Change Dieolacement meter 518" $2.999 $3.188 $189 314" $4.274 $4,544 $270 $12,746 $13,550 $804 1 In. T $19.194 $20,405 $1.211 3" $33.739 $35.868 $2.129 4" $52.483 $55.794 $3.311 6" $97.468 5103.618 $6.150 8" $115.2~ $122.469 $7,269 1' $6,748 $7.174 $426 Turbo iirriaation meters) 1 In" $14.964 $15,908 $944 2 $23.992 $25,553 $1.514 3" 552.483 $55.794 $3.311 4" S149.9Y) $159,411 $9.481 $299.900 $318.822 $18.922 6- 8" P420,WO $446,502 $26,502 4" $89.970 195.647 55.677 6" 1187,438 $199,264 $11,826 S216,Wa $229,630 $13,630 8" Turbine Meter I Council Internet Mailbox - CITY OF CARLSBAD I CONTACT US Page 1 1 I I CITY OF CARLSBAD From: <jacjaf Q sbcglobal. net> To: <Council @[205.142.109.13]> Subject: CITY OF CARLSBAD I CONTACT US City Manager City Attorney A visitor to the City of Carlsbad Web site has completed and posted the "Contact Us" fo-&grtment, City Council. Date: Mon, Jun 20,2005 2:46 PM city Council ............................................... FOR SECURITY REASONS, DO NOT CHANGE THE SUBJECT LINE. .............................................. Below, please find the information that was submitted: I am concerned that insufficient funds are allocated in the current budget to satisfy your responsibility to remove the residents of Rancho Carlsbad from the possibilities of future flooding conditions. Yet an enormous amount of money is being allocated for a public golf course that fewer than 5,000 people voted for in 1989. Is this an indication to the 800 residents of Rancho Carlsbad that fun and games are more important to you than the health, safety and welfare of these people? Jack Jaffe 5144 Don Rodolfo Dr. Carlsbad, CA 92008 jacjaf Qsbcglobal.net Mozilla/4.0 (compatible; MSlE 5.0; Mac-PowerPC) 67.124.194.181 Page 1 of 1 AGENDA ITEM # Lf Council Internet Mail City Coandl From: "Richard Spahn" &chard.spahn@cox.net> To: <council @ ci.carlsbad.ca.us> Date: 06/20/2005 12:05 PM City Manager City Attorney Clty Cbrk Subject: Open Space ~~ I -- I ___ I I . Dear Council members- One of the reasons I moved to Carlsbad was the open space. And I immensely enjoy viewing and hiking the open areas. Please please fund the preservation of TRUE open space in the budget. Don't lose this precious land by spending capital money elsewhere. Elsewhere can wait but land acquisition can't. Once it's gone, it's gone. Thank you for listening. Richard Spahn EGEUVE CITY OF CARLSBAD CITY CLERKS OFFICE cc 70' file://C:\Documents and Settings\ppret\Local Settings\Temp\GW } 0000 1 .HTM 06/20/2005 From: "Lorna Buratto" <IburattoQadelphia.net> To: <council Qci.carlsbad.ca.us> Date: Thu, Jun 16,2005 11 :56 PM Subject: Save Open Space in Carlsbad How can you continue to ignore the needs of the people by not saving open spaces in Carlsbad? We have already paved Paradise and made enough parking lots and buildings. Even the wildlife is rebelling and attaching our pets and property. It's about time you listened to the everyday family people who live here because it's not like L.A. Are you people nuts, or what? Whose pockets are you lining and whose pockets are you picking? From: <dcbhmead Q adelphia.net> To: <council Q ci.carlsbad.ca.us> Date: Tue, Jun 21,2005 12:ll AM Subject: Four Measure C Projects Mayor Lewis and Council Members Hall, Kulchin, Packard and Sigafoose, As a friend of each one of you, I request in your most difficult job to adopt a proper budget, that in light of the problems cities and school districts are having on employee issues, that you don't spend $1 00,000. to study a new employee training faciliy. The swim center and natural lands must be considered at the top of your list. Cannon Road is doing well and you must take care of the items mentioned in Measure C first. All our possible available land to complete the open space plan must be purchased now rather than later. The costs are so high and it is not fair to the citizens to put it out of reach because of no action by the council in the last two years and now. Thanks for your consideration, Barbara Mead From: "Karen" <kmerrill Q kmerrill.cts.com> To: <council @ci.carlsbad.ca.us> Date: Thu, Jun 16,2005 11:lO PM Subject: city budget Mayor Lewis and Council, I attended the Budget workshop this week and was dismayed to discover there is still no budget item for open space acquisition with Measure C funds. I voted for that measure because of the open space portion two years ago and am still waiting for action on the commitment. As our natural lands dwindle and the costs climb, we are going to be very sorry to discover we waited too long!!!! There was also no mention of funding for the Habitat Management Plan. I recall a one year time frame to fund management of preserved lands. After all the time and effort that went into the plan, this aspect cannot be overlooked. We all want the plan to succeed. I urge you to allocate funds for the above items at the council meeting on Tuesday. Sincerely, Karen Merrill 6901 C Quail Place Carlsbad, CA 92009 760-438-1 209 From: Don Christiansen <donChristiansen Q pacbell.net> To: <council Qci.carlsbad.ca.us> Date: Tue, Jun 14,2005 12:43 PM Subject: Carlsbad Open Space Hello Mayor Lewis and Council members! Please consider this as my request for you to be pro-active by committing to purchase open space for Carlsbad. As I recall open space is a top priority for the majority of "we the people" of Carlsbad. Most of us don't golf or swim, but we do have an appreciation for natural open space and the improved quality of life it helps create. I appreciate your pro-active leadership on other issues and look forward to the same type of leadership on this high priority issue of the majority of Carlsbad residents. Sincerely, Don Christiansen From: <pennyofcbad Q sbcglobal.net> To: <council Qci.carlsbad.ca.us> Date: Mon, Jun 13,2005 9:22 AM Subject: Natural Open Space Dear sirs: I continue to be interested in your making sure that natural open space and habitat corridors are of prime importance to the city of Carlsbad . Thank you !! Penny Johnson From: 4imsullivan Qwwex.com> To: <ManagerQ[205.142.109.13]> Date: Subject : Tue, Jun 14,2005 10:25 AM CITY OF CARLSBAD I CONTACT US A visitor to the City of Carlsbad Web site has completed and posted the "Contact Us" form to department, City Manager. .............................................. FOR SECURITY REASONS, DO NOT CHANGE THE SUBJECT LINE. .............................................. Below, please find the information that was submitted: I'm writing to express my deep regret with the city of Carlsbad for even considering developing in the Ponto Region. The only thing we have left in this world that is still sacred is our environment. And you people are unfortunately considering altering the course of history for our kids and our grandchildren by developing one of the last remaining beautiful beaches. Do you think we really need more hotels and more shopping malls? What do you intend to put in the malls? Linen and things, Starbucks, Payless, Bed Bath and Beyond ... come on, drive over to Palomar Airport Rd. Do we need that more than we need a beautiful beach with a beautiful reserve? And a hotel, how more traffic can we take in North County? Keep in mind once you develop, you can never go back to the way it was. I share your aspirations for wealth and material things, but certainly not at the expense of the environment. Nature is what keeps us peaceful and inspired. Home Depot does not. It is disturbing that so many elected officials come into power and quickly side with the developers. I just wonder if you are going to be proud of the decision you made when you are old and retired. Fighting money and greed of developers takes much more strength than give in and sign off of on the development. Developers wanted to put two 500 room hotels in downtown Laguna Beach in the late ~O'S, but luckily a group led by an artist that owned a coffee shop fought the city. And now 30 years later, look how unique Laguna Beach looks compared to the development of Newport Beach. I just ask that you do a little sole searching before you cast your vote. If you are from San Diego County, do you really want to turn this place into LA or OC? Whose interest are you taking into consideration, the general publics or the super wealthy few that do not need more money? Please do not give into the greed! Tim tim Sullivan Carlsbad, ca timsullivan Qwwex.com Mozilla/4.0 (compatible; MSlE 6.0; Windows NT 5.1; SVl; .NET CLR 1.1.4322) 69.236.250.97 From: <srfn law 62 aol.com> To: <Council @[205.142.109.13]> Date: Subject: Thu, Jun 2,2005 8:39 AM CITY OF CARLSBAD I CONTACT US A visitor to the City of Carlsbad Web site has completed and posted the "Contact Us" form to department, City Council. .............................................. FOR SECURITY REASONS, DO NOT CHANGE THE SUBJECT LINE. .............................................. Below, please find the information that was submitted: PROTECT PONTO! Dear City Council, I am a neighbor in Leucadia, immediately south of Ponto Beach. I have been surfing there since the 1975 and my law practice (North County Law Firm) is now in the same area. Over the decades, I have watched Carlsbad steadily bulldoze itself into soul-less sea of houses, hotels, gas stations and fast food restaurants. It was only a matter of time, of course, before the Ponto area got put up on the chopping block too. With its close proximity to the beach and the ocean, this is prime, prime real estate. And the forces of greed are at work as we speak to squeeze every last cheesy development dollar out of this very special and unique chunk of land. But as a representative of all the people of Carlsbad and the keeper of the public interest, you must insist upon an Environmental Impact Report (EIR) being performed as a condition of development. More importantly, you should show the world that you each have the vision, integrity and true leadership necessary to ensure thoughtful development that treats this coastal zone like the treasure that it is. Ask yourself, when my time as a public servant is over, and I look back on the legacy I left behind, will your children and their children be pleased with the results? Will there be open space? Will there still be an estuary? And will it be protected from runoff pollution? Will there still be public access to the beaches? Or fortressed walls and gates only for the privileged few? In short, will the generations to come be proud of the work you are doing now to protect the public interest? Please conduct the EIR. Please show the courage and leadership necessary to serve the public well and true by requiring thoughtful, careful development of land that is unlike any other land in the whole entire world. Thank you. Anton Gerschler 914-A North Coast Highway 101 Encinitas, CA 92024 Page 1 of 1 Council Internet Mailbox - Preserve Carlsbad's Open Spaces i;lwre%a From: cdemery8 @sbcglobal.net> To: <council @ci.carlsbad.ca.us> Date: 06/20/2005 6:17 AM Subject: Preserve Carlsbad's Open Spaces cc: u-eneenews@email.com ALL RECEIVED Dear Mayor Lewis and Council Members Hall, Kulchin, Packard, and Sigafoose, I understand you have allocated zero funds for natural lands acquisition. Please make good on your promise to preserve our quality of life and save our natural open spaces. Thank you. Regards, Deidre Emery .%4!ABk lTEM # C: Mayor City Council City Manager City Attorney City Clerk I' CITY OF CARLSBAD 1 CITY CLERK'S OFFICE file : //C :\Documents and Setting s\ppre tLoc a1 Setting s\Temp\G W } 0000 1 . HTM 06/20/2005 From: THERESA ACERRO cthacerro@ yahoo.com> To: <council Qci.carlsbad.ca.us> Date: Sat, Jun 18,2005 656 PM Subject: Measure C Mayor Lewis and Council Members Hall, Kulchin, Packard and Sigafoose: I thought that the public had made it clear to you that the purpose of Measure C was to preserve open space in Carsbad. Why is the council spending this money on other things? Our quality of life and community character depend upon preserving substantial open space quickly before prices go even higher. Theresa Acerro ALL RECEIVED Do you Yahoo!? Yahoo! Mail - Find what you need with new enhanced search. h ttp://info.mail.yahoo.corn/mail~250 AGENDAITEM # C: Mayor City Council City Manager City Attorney City Clerk Page 1 of 1 Council Internet Mailbox - Section 8 housing & undeveloped land about Calavera From: "rbfox3905" abfox3905 @ adelphia.net> To: <council @ci.carlsbad.ca.us> Date: 06/18/2005 557 PM Subject: Section 8 housing & undeveloped land about Calavera Please give original of this to Mayor Buddy Lewis and copies to each of the other council members: I am Roger E. Fox, M.D., and my wife is Betty Lou Fox. We have lived at 3905 Park Drive, Carlsbad, CA 92008, the past 9 years. We are very interested in two things at present: 1 We would like to see that Section 8 Housing is fully funded. 2 We would like to see the City pruchase land about Calavera that is vacant and keep it entirely natural to serve as a wildlife from being destroyed so that future generations can appreciate them. corridor and to keep the natural plants Sincerely, Roger E. Fox, M.D. c: Mayor City Coundl City Manager City Attorney City Clerk file://C:\Documents and Settings\ppret\Local Settings\Temp\GW}00001 .HTM 06/20/2005 FROM : BECKETT ENTERPRISES FFlX NO. : 760-431-6775 Jun. 21 2005 12:SSPM P1 I'ngc 1 ot I From: <ruthandbillarnoId@sbcglobaI.net> To: Sent: Subject: City Budget priorities 'David Hauset' cdhausaci carlsbad ca.us> Tuesday, June 21,2005 1.26 PM to: City Council, City of Carlsbad, Ca. for 2005-2006 indicates underfimding or lack thereof for projects that will complete or correct our flood mitigation plans in all its phases. The priority schedule for much of this work is incomplete or non-existent. We would remind City Council that in a public; session this past April," flood control for Rancho Cadsbad would be given top priority." Providing the nccessary funds is part of that commitment. On the subject of a golf course this Council has no business promoting or expending City funds for a public golf course, certainly not at the expense of more worthy projects to provide and protect its citizenry. Bill Arnold, President, Rancho Carlsbad Homeowners Association. A brief review of the Budget h& L?;E C: Mayor City Council City Manager City Attorney City Clerk 6/21/2005 AI1 Receivo For the Information of the: / /Tern =pt From: David Hauser To: ruthandbillarnold@sbcglobal.net Date: 06/21/2005 2:50:01 PM CITYCOUNCIL/ / .- Subject: Re: City Budget priorities Bill, control projects. This information was provided to Council at their April meetings. A consensus was reached at that time, not to immediately modify the project budgets. We have more than adequate funding to keep each of the remaining flood control project moving along to construction. At the point where we have a more clear picture of the total funding needed to construct the projects, including environmental mitigation expenses, property acquisition costs and relocation expenses, we will return to Council with an appropriate funding recommendation. In this manner, we can avoid duplication of effort and better manage our potential funding resources. You are absolutely correct. There is potential underfunding of several of the Rancho Carlsbad flood The Council clearly articulated to staff the importance and priority of the RC flood control projects. The City remains committed to delivering the projects in the most timely manner possible. With regards to the golf course matter, by copy of this email, I will pass your comments along to the Council. If you continue to feel strongly about the golf course funding, I recommend that you take the opportunity to express your concerns directly to the Council at tonights budget hearing. David David Hauser Deputy City Engineer Planning and Programs dhaus@ci.carlsbad.ca.us (760) 602-2739 >>> eruthandbillarnold@sbcglobal.net> 6/21/2005 1 :26:45 PM >>> to: City Council, City of Carlsbad, Ca. for 2005-2006 indicates underfunding or lack thereof for projects that will complete or correct our flood mitigation plans in all its phases. The priority schedule for much of this work is incomplete or non-existent. We would remind City Council that in a public session this past April," flood control for Rancho Carlsbad would be given top priority." Providing the necessary funds is part of that commitment. On the subject of a golf course this Council has no business promoting or expending City funds for a public golf course, certainly not at the expense of more worthy projects to provide and protect its citizenry. Bill Arnold, President, Rancho Carlsbad Homeowners Association. A brief review of the Budget cc: Council Internet Mailbox; Glenn Pruim; Ray Patchett - CITY OF CARLSBAD CITY CLERKS OFFICE 1 Council Internet Mailbox - open space funding Page 1 I From: "kasey" <kcinciarelli Qadelphia.net> To: <council Qci.carlsbad.ca.us> Date: Subject: open space funding Tue, Jun 21,2005 2:33 PM AGuWti I I'EM # C: Mayor City Council City Manager City Attorney City Clerk Dear Mayor, Council and staff; Let's not let another budget cycle come and go without funding open space acquisition in Carlsbad. 1/4 of the 35 million set aside for prop C projects is roughly 8.5 million. This would be equitable funding of Prop C measures. Right now is the time to allocate this money and a sizeable yearly replenishment fund, say 1/2 a million. Of course allocating the money will not get it spent. We also need a credible staff person whose job it is to identify viable parcels, find matching funds and secure their acquision. As you well know with each passing year less land is available to be purchased, and costs continue to skyrocket. The Citizens of CBD voted in Prop C because they wanted open space funding set aside and the land securely purchased - BY THEIR CITY. There is no more time critical issue than open space. The citizens have spoken through years of citizens surveys. Alls that is left is for the city - YOU the Council - to act. One of you could really distinguish yourself as advocate for conservation by making a motion to allocate 8 million to open space - now at tonights meeting. Please someone with some foresight who cares about the diveristy of species and hense the quality of life here in this city, Take the lead!! ! ! !! Distinguish yourself.. . .. .Act now. On behalf of all voters who voted for Prop C because we thought you'd actually buy some natural lands ...... Kasey Cinciarelli Page 1 of 1 Council Internet Mailbox - Allocate Funds for Open Space & Natural Lands From: "John Galvan" <nodepression@adelphia.net> To: <council@ci.carlsbad.ca.us> Date: 06/21/2005 1:30 PM Subject: Allocate Funds for Open Space & Natural Lands City Council City Manager City Attorney City Clerk Dear Mayor Lewis and Council Members Hall, Kulchin, Packard and Sigafoose, As you meet today to discuss next year's city budget, we are writing as concerned Carlsbad citizens to implore you to allocate the necessary funds to preserve natural lands, as mandated by Measure C two years ago. In order to ensure our quality of life, the people of Carlsbad have made it clear that preservation of open space is a top priority. We regret not being able to make the City Council Meeting today at 6:OO PM to speak to you directly. We have extended family and friends who live and are raising their families in this community. I am a high school educator, and my wife (who has lived in Carlsbad since 1986) is a small business owner in the Village. We are voters, and we are active in both our church and our community. Please demonstrate your concern for the priority of the citizens of Carlsbad by allocating Measure C funds to the preservation of open space and natural lands. Sincerely, John and Amy Galvan Carlsbad Citizens file://C:V>ocuments and Settings\ppretLocal Settings\Temp\GW }OOOO 1 .HTM 06/2 1/2005 Page 1 of 1 AGENDAITEM # C: Mayor Council Internet Mailbox - Carlsbad's beloved From: To: Date: Subject: Wendy Persson <wpersson@ sbcglobal.net> <council @ci.carlsbad.ca.us> City Manager City Attorney City Clerk 06/21/2005 12:39 PM Carlsbad's beloved open spaces ............ . .. ......,... .... . ~ .~...--...I ..... .. .~ ~~- ...... II ..,....._II._. . .... " ...,~______._.__I .,..... . .__._I ..~. ^_^^ , .l." ..^__l_l_ . ,"" . . ,.l...l" .. .- I am writing you regarding the quickly dissapearing open space of Carlsbad. Please allocate funds for open space in Carlsbad for the sake of the people and the wildlife. Sincerely, Wendy Persson Alicante Road, La Costa file://C:\Documents and Settings\ppretLocal Settings\Temp\GW}00001 .HTM 06/21/2005 Page 1 of 2 From: <GEOBRUCEQaol.com> To: <council Qci.carlsbad.ca.us> Date: 06/21/2005 10:15 AM Subject: Open Space Acquisition should be a priority in new Budget City Council City Manager City Attorney City Clerk June 21,2005 To: Mayor Lewis and Council Members Kulchin, Hall, Packard, and Sigafoose From: Bruce Grouse Re: The Budget for the next fiscal year Mayor Lewis and Council Members, I understand that you will be voting to adopt the budget tonight for the next fiscal year. I am writing this letter as I was unable to participate in the Public Budget Workshop last week and I will not be available to attend the Council meeting tonight. It is my understanding that no money has been allocated in the new budget for the acquisition of natural land for open space. This is very disappointing and shows a lack of long term vision and foresight for Carlsbad. I believe open space land acquisition is a much higher priority than a “stadium” tennis court, a pricey new swim center, and still more roads. Open space lands are increasingly becoming our rarest and most irreplaceable resource. Nothing else proposed in the budget will increase the quality of life for the residents of Carlsbad in the short and long term like preserving our few remaining open space lands for present and future generations. I would urge all of you, and your city planners, to read a new book by local author, Richard Louv, titled Last Child in the Woods - Saving our Children from Nature Deficit Disorder. He clearly explains why preserving natural lands in the urban and suburban areas where most of us live, and developing a relationship with nature is so important to the all-around development of our children. I would also argue that an ongoing relationship with nature is important for people of all ages. After a long, pressure- filled day at work, there’s nothing I find more relaxing than a hike in some of the still undeveloped areas near my home in Calavera Hills. In addition, I am concerned that the City Council has yet to fulfill its promise to form an open space committee to prioritize the natural lands that Carlsbad should be acquiring for open space. Is there a reason this is not yet in place? I am aware the residents of Carlsbad voted for the acquisition of open space land and 3 other projects when Measure C was voted for a few years ago and money was set aside in a fund for this purpose. I understand the City has moved forward on the other three projects. Why is there a hold up with acquiring these open space lands? I know many of my neighbors share my frustrations on this issue. I urge you to set aside funds for open space land acquisition before adopting the new annual budget, and move forward with the formation of the Open Space Committee. file://C:\Documents and Settings\ppretLocal Settings\Temp\GW }OOOO 1 .HTM 06/21/2005 Page 2 of 2 Thank you for your attention to this matter. Sincerely, Bruce Grouse 3729 Bennington Court Carlsbad, CA 92010 file://C:\r>ocuments and Settings\ppretLocal Settings\Temp\GW }OOOO 1 .HTM 06/2 1/2005 Open Space Page 1 of 1 Council Internet Mailbox - Open Space atr AGENDA ITEM # From: Lynn Crockett <lynn.crockett @america.lego.com C: Mayor To: Date: 06/21/2005 9:40 AM City Manager Subject: Open Space City Attorney "'council @ ci .carlsbad.ca.us"' <council 63 ci .carlsbad.ca.us> City Council I - I - II I - *€le& - -- Dear Mayor and Council Members: Is it true that on no funds have been budgeted this year for open space land acquisition? Open space has repeatedly been identified as a community priority in surveys, and through meetings with individual council members, the mayor and at council meetings, over years and years! Preserving open space is an identified community priority. Although it may be difficult to work with a particular group or groups, the open space priority remains important for a majority of Carlsbad citizens! I ask you to please make open space a city priority. Although difficulties may arise during the process, there is a way to address the important priority of open space. At one time, an Open Space committee was discussed, and I would be willing to serve on such a committee if the idea is opened again at a future date. Thanks, Lynn Crockett Education Manager LEGOLAND California Ph 760-918-5447 Fax 760-918-5459 file://C:\Documents and Settings\ppretLocal Settings\Temp\GW } 0000 1 .HTM 06/21/2005 -~_ PROGRAM OPTioNS~ I FLY FRIENDLY I Background The McClellan-Palomar Airport Advisory Committee is working with the County of San Diego to develop a “Fly Friendly” program. The program is designed to educate citizens and pilots flying from McClellan-Palomar Airport on current airport operations and the impact to the surrounding community. The committee is seeking funding to produce handouts that would help educate local homeowners on the flight path, airport operation and noise levels that should be anticipated. The handouts would also be used to educate pilots and heighten their sensitivity to homeowners concerns. The handouts will be available at the airport and will distributed to local developers, real estate agents and interested homeowners. The County of San Diego has committed to a $1,500 contribution for the fliers and the committee is asking for the City of Carlsbad to contribute $1,500 on an ongoing annual basis. The committee is also requesting that the City publish a link on the City’s website for a future “Fly Friendly” website. The committee is approaching other homeowners associations, community groups and developers for additional funding. See the attached letter for further information. COUNCIL OPTIONS In summary, staff would like direction from the City Council on which of the following options they would like to pursue: I. Decline any involvement at this time, but commit to providing a link to the Fly Friendly program on the City’s web site. 2. Contribute a one time $1,500 to the Fly Friendly program. 3. Contribute a one-time payment of $1,500 to the Fly Friendly program and provide a link to the Fly Friendly program on the City’s web site. 4. Request staff to add $1,500 to the 05-06 budget for the Fly Friendly program and to include a similar amount in future budgets for the Council’s consideration. Also provide the link to the Fly Friendly website. McCLELLAN-PALOMAR AIRPORT 2198 PALOMAR AIRPORT ROAD, CARLSEAD, CA 92008-4814 (760) 431-4646 April 2 1,2005 Ray Patchett, CM City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Dear Mr. Patchett, The McClellan-Palomar Airpol. Advisory Committee is working with the County of San Diego and some of our citizens to develop a “Fly Friendly” program to educate pilots and our citizens about airport operations and their impact upon our surrounding community. Towards this end the County has contributed money towards the pilot outreach component and in kind services we ask the same of the City of Carlsbad for the community outreach component. The County has contributed $1500.00 to date and we are asking you for an ongoing annual match. We request that this budget request be placed in the next budget cycle or docketed for a council vote using money from the contingency fund. Also, would it be possible to publish a link to our hture “Fly Fri&dly” website from your city website? This would provide easy access to valuable community information. Sincerely yours, L Ramona Finnila, Chairperson Palomar Airport Advisory Committee OGWM OPTIONS I I SOLID WASTE PROGRAM ENHANCEMENTS I Background Under AB 939, local jurisdictions are required by the State to divert 50 percent of generated waste from the landfill. Until 2003, the City had continuously met the State diversion rate requirements. In 2003, however, the City fell below the mandated diversion rate at 48 percent. To assist the City in meeting the State diversion rate requirements and to increase the existing solid waste service level, Staff is proposing the introduction of three new solid waste services. These three services are discussed below. 0 0 0 Curbside Household Hazardous Waste fHHW Collection f$74,8001. This service would offer residents the convenience of having HHW materials collected directly from their residence. Residents can utilize the service for a nominal fee or could continue to use the drop-off facilities available in Oceanside and Vista. Backvard Compostinn Program ($22,0001. This program would consist of a composting bin sale along with workshops and training programs about composting and less toxic yard and garden care. Studies in California about home composting have shown that per residence, up to 600 Ibs of organic material can be diverted on an annual basis. Increased diversion from composting would assist the City in diverting more waste from the landfill. SDecial Collection Event for Household Hazardous Waste and Electronic Waste f$70,000). The special collection event would provide residents additional options for properly disposing of household hazardous waste and electronic waste. The special collection event would be used in conjunction with the existing permanent facility locations but offer residents an additional opportunity to properly dispose of waste without having to leave the City boundaries. Staff conducted a five-year projection on the solid waste fund revenues and expenditures to determine the financial capability of the fund to absorb new and/or enhanced services. Along with interest income earned on the existing fund balance, revenue projections are based upon the number of residences and businesses serviced, population and amount of disposed trash through the Palomar Transfer Station. The revenue from fees combined with interest earned is then used to offset program expenditures. Based on the five-year cash flow model, fee revenue and interest income should be sufficient in the Solid Waste Fund to sustain the costs associated with the addition of these new programs. Providing these services will most likely have only a minimal impact on the diversion rate, and may not be enough to increase the diversion rate back to 50%. However, California Integrated Waste Management also takes into consideration effort, and these programs show a good faith effort to improve diversion rates. Additionally, these programs will provide residents with a higher level of service addressing customer satisfaction concerns identified in the Public Satisfaction Survey. COUNCIL OPTIONS In summary, staff would like direction from the City Council on which of the following options they would like to pursue: 1) Fund all of solid waste enhanced program requests 2) Fund selected solid waste enhanced program requests 3) Do not fund solid waste enhanced program requests I 4 PROGRAM OPTIONS 1 I r TOURISM PROMOTION PROGRAM OPTIONS I Background Carlsbad has, over the past decade, evolved from a relatively small tourist destination to a major leisure destination in Southern California. The opening of the Four Season’s Resort at Aviara in 1997, the Legoland Theme Park in 1999, along with the opening of the Grand Pacific Resort, Marriott Residence Inn, Courtyard, and Hilton Garden Inn have created a critical mass of tourism oriented activity. Add these new venues to the recent renovation activity at La Costa Resort and Spa, the group visitor activity at the Carlsbad Premium Outlet and the Flower Fields, and the general attraction of visitors to Carlsbad’s beaches, lagoons and special events, and you have a tourist destination with year-round appeal. Visitor’s Center & Local Promotion The Visitor’s Center is located at the old Carlsbad Depot, and is operated by the Carlsbad Convention and Visitor’s Bureau (CCVB). Through an extensive volunteer effort, the CCVB operates the Center year around, and is closed only on major holidays. The center provides walk-in visitors, those calling on its toll free phone line, and those inquiring via the internet with information and referrals to hotels and other local venues. The Visitor Center is managed by full-time CCVB staff. The Visitor’s Center building (Depot) is provided by the City of Carlsbad at no cost to CCVB. Local Promotion is also handled by CCVB and includes development and distribution of travel brochures, sponsoring local events, website administration and maintenance, sponsoring familiarization tours for travel writers, attendance at Travel Trade Shows, and other promotion and marketing services. CCVB staff includes an Executive Director, a Public Relations Director, a Volunteer Supervisor, and periodic part-time staff. Funding for both tourism oriented programs and the Visitor’s Center has been allocated annually to CCVB on a contractual basis. The amount for the 2004-05 fiscal year is $408,000. Group Sales In 2002/2003, an alliance formed from a group representing the local tourism industry and recommended the inclusion of a Group Sales Program as a City funded activity to support industry efforts to attract a new class of visitor to Carlsbad. For the 2004-2005 Budget, San Diego North Convention and Visitor’s Bureau (SD North) submitted a proposal to the City to enhance promotion and marketing of Carlsbad through administration of a Group Sales Program at a cost of $100,000. At that time, many of the large hotel operators and tourist attractions, as well as many members of the Tourism Alliance, indicated that SD North was the most experienced provider of these services in San Diego County. The City Council approved the proposal. Revised Program Option Business Improvement District Proposal In 2004, the CCVB began investigating the idea of creating a special Business Improvement District (BID), which would establish a new private revenue source for tourism activities. The idea is that the membership of the District would include local hotels and motels, each collecting $1 .OO per room night from guests, which would later be used to fund local tourism promotion and marketing efforts. independent source of revenue from the hotel industry, the CCVB would no longer have to rely solely on an annual allocation from the City. Currently the City has agreed to loan $33,500 to CCVB to fund their consultant activities related to formation of the BID. If the formation occurs, the BID would be expected to repay the loan with revenues collected from the BID. The CCVB has indicated that during the formation period, and until the funds generated are equal to or greater than their current funding level, they will be asking for the City to fund their operation at historic allocation levels. By creating an The City currently funds both the CCVB ($408,000) and San Diego North Convention and Visitor’s Bureau (SD North) ($1 00,000). Under the CCVB proposal, none of the BID funding would be directed to any agency except CCVB. According to the CCVB, BID revenue would allow them an opportunity to create their own Sales Program for Carlsbad. Funding Levels and Timing Staff has received two requests for funding tourism related programs for the 2005-2006 Budget. These include a request from CCVB for $408,000 and a request from SD North for $100,000. These amounts represent no increase from the 2004-2005 budgeted amounts. CCVB Request (Exhibit A): Reimbursable Expenses: Advertising, Promotion & Events - Printed Materials, Brochures - Internet Development - Travel Shows & FAM Tours- Subtotal $1 46,077 $1 1,197 $1 3,997 $20,155 $1 91,426 Visitor’s Center/Overhead/Personne/: $21 6,574 Use of the Depot Building: ($10,000 to $12,000 est. annual value) Total CCVB Funds Requested San Diego North (Exhibit B) Carlsbad Group Sales Program: $0 $408,000 $1 00,000 $1 00,000 Total SD North Request Revised Program Option COUNCIL OPTIONS Staff needs direction on how, or if, Council would like to fund the Tourism Promotion program for the next year. Staff has received proposals from both CCVB and SD North. Some options are arrayed below. For CCVB: 1. 2. 3. Contract with CCVB for the same amount and under the same terms and conditions as for the 2004-05 fiscal year ($408,000 for one year). Include a clause in the contract, which stipulates that the total amount of the contract will be reduced by any amounts received under the BID after repayment of the loaned amounts and cancelable at any time with 30 days notice. Contract with CCVB for a lesser amount. Don’t contract with CCVB. For SD North: 4. Contract for the same amount and under the same terms as the 2004-05 fiscal year. Include a clause in the contract, which stipulates that the total amount of the contract will be reduced by any amounts received under the BID after repayment of the loaned amounts and cancelable at any time with 30 days notice. 1. Contract for a partial year in anticipation of the passage of the BID within six to nine months (Le. 50-75% funding level}. 2. Don’t contract with SD North. Revised Program Option Y Exhibit A April 7,2005 City of Carlsbad Ms. Cynthia Haas Economic Development Manager 1635 Faraday Avenue Carlsbad, CA 92008 Dear Cynthia: As Chairman of the Carlsbad CVB Board of Directors, it is my pleasure to present for your review the request for funds for Fiscal Year 05-06. I would like to note that, as in the previous three budget cycles, the CVB is submitting another flat-hnded request for city funding. Although the amount requested - $408,000 - is the same as last year, there are only a few areas where changes should be noted. The attached Budget Proposal for FY 05-06 details Income and Expenses for bureau activity. You will note that payroll costs have been reduced in the FY 05-06 budget. The bureau tried to identify and hire a part-time administrative assistant with specific skills but was unsuccessful in bringing that person on board. It was decided that any addition to staff ought to be done after the bureau begins receiving revenues from the BID and in accordance with staffing needs to be outlined by Strategic Marketing Group. You will note that our costs associated with Personnel have been reduced in FY 05-06 by more than $2 1,000. The reduction in personnel expenses has allowed us to increase our budget expenditure in marketing programs and professional services by nearly $30,000. Expenses associated with the Visitor Center have increased approximately $7000. This represents minor increases in nearly 30% of the individual line items shown for Visitor Center operations. The attached budget for FY 05-06 details Income and Expenses, together with dollar allocations and percent of budget for each line item that is internally tracked by the bureau. Carlsbad Convention & Visitors Bureau 400 Carlsbad Village Drive, Carlsbad, California 92008 (760) 434.6093 FAX (7601 434.6056 www,visitcarlsbad.com infoQvisitcarlsbad.com This budget shows that 93.3 1% of the bureau’s funding comes directly from the City of Carlsbad. Four Program line items have been listed totaling $191,425 in reimbursable expenses. Those line items are as follows: 0 Advertising, Promotions & Events - $146,077 e Printed Materials, Brochures - $1 1,197 e Internet Development - $13,997 0 Travel Shows & FAM Trips - $20,155 As in previous years, the Board believes that our request of $408,000 is both reasonable and sound. The Board of Directors unanimously approved this budget and request of funds from the City at its March 23,2005 monthly meeting. Please call either myself, (760) 727-5 100, ext. 102 or CVB Board Treasurer, Randy Chapin, 434-7542, if you have any questions or need clarification on any aspect of this submission. Thank you very much. Sincerely, Patrick Feam, Chairman CVB Board of Directors cc: City Manager CV3 Board of Directors CVB Executive Director 2 Carlsbad Convention and Visitors Bureau 200512006 Budget Proposal - SalaryaWages . ' Payroll Taxes Benefits Total Personnel: BUDGET % OF BUDGET $150,550 34.43% $15,500 3.54% $1 3,000 2.97% $179,050 40.95% INCOME TOTALS TOTALS City Of Carlsbad - Monthly Allotment $229,700 52.53% City of Carlsbad - Reimbursed County of San Diego Product Sales Hotel Co-op Internet Income Marketing Partnerships Misc Promotions RefundslReimb. Total Income: I- I I Vlsitor Center Operations Equipment Purchases Equipment Rental Equipment Repair Insurance - Liability Items for Resale Local ConferenceslMtngs Membership Dues Miscellaneous Items Office Supplies Postage & Freight Professional Services Taxes Telephone Utilities Volunteer Program Total Visitor Center Operations: Travel Mileage Allotment Travel, Lodging, Meals Total Travel Professional Services Advertising & Events Brochures Internet Development Travel Shows & Fam Trips Total Professional Services: Total Expenses: $437,2501 100.00%~ I 4/7/2005 OPFICPa.% Chairnun Tin! hdl. CEO/Gciirl Manapsr Del Mar hirgmunil Vice Chairnun Roben Ranch. Manyiiig Dimcfor R.A. bucli & Aswcum. Inc. Trrarum Rubm McChrrc. Iliwmr San Dirp 2003 Wild AnIniJ Park -w Jmn 5. hrh-, AIIWII~ AI La Jaiiia S. htlq Lnv Ollircr DIRECTOW Ania IIorkn. Marlccnug Dimioi (srbbul Company Stom Paul Gniniw. C~IIC~ Man;lgrr Snn Dicp Mwriotf la Jolh John Dalcy Owner 101 Cali. Ocniaidc Jullaii I>u\d. 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Exhibit B April 20, 2005 City of Carlsbad Attn: Cynthia Haas, Economic Development Director 1635 Faraday Avenue Carlsbad, CA 92008 760-602-2732 Carlsbad Sales Plan FY 2005-06 It is our request and recommendation that the City of Carlsbad continue its investment in a destination focused sales strategy for FY 2005-06 with the San Diego North CVB. The San Diego North CVB will again commit to a 50% match of funds and leverage its assets, resources and skills to maximize benefit to Carlsbad. A 2005-06 sales plan with performance measures will be submitted to the City of Carlsbad. Oral and written sales reports will be given regularly to the City Council and City StafE Group Market: Groups of more than 10 people San Diego North Convention and Visitors Bureau $100,000 $100,000 Oversees group sales for all geographic markets 1 Total City of Carlsbad Investment Snn Diego North CVB (Match) $ 50,000 Total Value $150,000 ploirnl 61 CEO Cain Moiuon SAN DIEGO NORTH CONVENTION G VISITORS BUREAU Executive Office: 360 N. Ercondido Boulevard. Escondido. California 02025-2600 Locsrrd AI California Ceiirtr For The Aril. Eicoodido Voicc: 760-745-4741 800-848-3336 Fax: 760-745-4796 Snles Oflice: 6120 Parco Del Norte. Suire L-I. Cnrlsbnd, California 92009-11 18 Voicc: 760-603-1690 800-848-3336 Fax: 760-603-9570 w\v w. sa II d i e go 11 or t 11. corn Page -2- Group Sales Objective: Increase measurable visitor spending through the generation of group business leads for room night bookings and group events. Generate $1 million in total visitor spending to Carlsbad. Tnctics include: Phone solicitatiodprospecting Personal sales calls to targeted national and international businesses Buyer site inspections Meeting planner familiarization tours Tour planner familiarization tours Trade and travel show attendance Direct mail campaigns Product launches for wholesale and airline vacation companies Email solicitation and promotions Reservation center educationals Ecommerce development Group Market Definitions Corporate: Incentive: Reward-based travel programs Association: SMEW: Travel Industry: Single property meetings of 10+ people Membership-based organizations with multiple meetings Social, military, educational, religious and fraternal groups MA, Amtrak, travel agencies, international and domestic tour and receptive operators, wholesalers, airline vacation companies, Internet travel sites Tournaments and competitions, etc. Government: Federal and State employees Sporting Events: Sincerely, e& dL Cami Mattson, President & CEO CITYWIDE TRAILS PROGRAM Overview In November of 2001, City Council adopted the Citywide Trails Program, directing staff to begin the implementation of this program. In February of 2002, City Council took action regarding the financing of the proposed Citywide Trail System, approving the use of General Funds to finance the acquisition, construction and maintenance of the trails. There are presently 12.5 miles of trails under the jurisdiction of the City that require maintenance, and it is anticipated that an additional 8.5 miles will be added in FY 2005-2006 (see attachment A). It is also expected that trail improvements in the Lake Calavera area will commence in FY 2005-2006. Since implementation of the program in 2002, the Citywide Trails Program has utilized resources to develop a Citywide Trail Volunteer Program, to implement present and future planning of the Trails System, and for Routine Maintenance and Operations of Citywide Trails. All three of these tasks involve staff time from both the Park Maintenance Department and the Recreation Department. The Park Maintenance Department provides routine maintenance for the City’s trails, with a primary goal of ensuring that such facilities are safe, clean and functional. The Park Maintenance Department provides, among other things the following routine maintenance duties: trash & litter pick-up, dog waste dispenser trash pick-up and bag replacement, trail signage installation and/or repair, trail surface and trail edging replacement or repair, trail mile marker post installations, citywide trail marker installations at trail heads, trail erosion repair, hazard mitigation, fallen tree and branch clearance, and weed abatement. Park Maintenance staff will also work with trail volunteers and provide materials, small equipment and tools necessary to maintain and build the trails as well as expertise on the proper care and installation of trail amenities such as benches, signage and trail markers. The Citywide Trail Volunteer Program is an important component of the Maintenance and Operations expenditures and currently there exists a strong volunteer base. Issues This year an additional 8.5 miles of trails are anticipated to be incorporated into the existing 12.5 miles of trails. When the trails report was done in June 2001, the estimated cost to maintain the trails was estimated at between $2,500 and $5,800 per mile. The current 05/06 budget for trails maintenance (not including the trails planning staff who is not involved in the actual maintenance of the trails) is $29,168. With 12.5 miles of trails, the budget is set at $2,333 per mile. This level of funding is proving to be inadequate to maintain the trails currently under management and will not accommodate the addition of the new trails for next year. The trails are disseminated throughout the City and require travel and volunteer coordination to provide adequate coverage. Additionally, while a strong base of dedicated volunteers has been developed, the volunteers are generally not available to perform consistent daily maintenance tasks, such as disposing of dog waste and other debris from receptacles along the trails, or responding to either staff observed or citizen generated safety concerns, which may require implementation of corrective actions. Citizen complaints have escalated during the past year. While this can partly be attributed to the severe rainstorms that have damaged the trails, it has also highlighted the limited amount of resources available for citywide trail maintenance. The limited resources for trail maintenance have a significant impact on the ability of staff to respond to and satisfy citizen complaints and safety concerns in a timely manner. Citywide Trails Program Current Requested Budget* Budget Increase Personnel $ 15,175 $ 75,123 $ 59,948 M&O 13,993 42,762 28,769 Total $ 29,168 $ 1 17,885 $88,717 Options To address these issues, staff is recommending the addition of one full-time Trails maintenance employee. Currently, there is a 50 FTE part-time employee in the trails program so it would bring the total staffing to 1.50 FTE. The new employee’s job duties would include coordinating with other park maintenance staff to ensure the daily and routine maintenance functions are provided to keep the trails safe, clean and functional and to address citizen concerns. They would also coordinate with volunteers and park maintenance personnel to ensure adequate resources are in place to tackle larger projects as needed. As this individual would work closely with Park Maintenance employees, he/she would be able to deploy several staff members from Park Maintenance to address a concern, and then reciprocate that action when issues are less pressing. A major benefit of having a full time position dedicated to trail maintenance would be a more consistent and stable work force that has more flexibility to meet the demands of customers. Traditionally the part-time employee pool has been prone to frequent turnovers. This turnover rate requires regular full time employees to be pulled from their regular duties to cover for the part-time vacancies and to train new employees throughout the year. The proposed increase in costs associated with this option would be $88,717. This includes the addition of a Maintenance Worker 1/11 at a cost of $59,948 for salaries and benefits, along with additional maintenance and operation costs of $28,769. The maintenance and operation costs would be utilized to purchase replacement rock and mineral products (decomposed granite), miscellaneous tools and rail Miles 12.5 21 .o per Mile $ 2,333 $ 5,614 Does not include the cost of the trails planner. supplies for maintenance activities, brochures, trail markers, etc., and for surveying and engineering assistance when needed. The addition of these amounts to the budget would bring the total to $1 17,885 or $5,614 per mile. As noted earlier, the cost per mile for maintenance in June 2001 was estimated at between $2,500 and $5,800 per mile. While the request would put the cost at the high end of the scale, costs have also escalated since the report was done. In today’s dollars, the cost per mile would be about in the mid range. Other Considerations With the approval of the Habitat Management Plan, the City has committed to take on additional responsibilities for the maintenance of the open space owned by the City. Staff is reviewing those responsibilities and estimating how much it will cost to maintain the lands as required. Council has also been receiving requests to purchase and preserve more open space in Carlsbad. Open space together with trails has been rated highly in recent surveys in terms of what citizen’s would most like more of in Carlsbad. With this in mind, Council may want to explore the option of forming a citywide community facilities district to fund the maintenance (and possibly purchase) of open space and trails. The last citizen survey found that 59.6 percent of respondents were willing to pay up to $1 00 per year to maintain the current level of lighting and landscaping services. A survey could be done to measure the citizen’s acceptance of the idea of funding the maintenance/acquisition of open space and trails through an assessment. It may even be feasible to combine the current lighting and landscaping districts together with an open space/trails district. If Council would like more information on the feasibility of creating such a district, you should direct staff to research more information and report back. A feasibility study for the lighting and landscaping districts is underway and can be adjusted to consider other issues as well. Also, staff is just putting together questions for the next citywide survey to be done over the summer and a question can be added to assess the citizen’s willingness to pay for these costs. The survey results would be available in late November or December 2005. Council Options 1. Provide the requested funding for the addition of one full-time Maintenance Worker ($59,948) and for maintenance and operation increases ($28,769) to the Citywide Trails Program at a total cost increase of $88,717. This would put total staffing at 1.50 FTE and total program costs at $1 17,885 or $5,614 per mile. 2. Convert the existing part-time position into a full-time position ($48,713) and provide additional funding for maintenance and operation increases ($28,769) at a total cost increase of $77,482. This would put total staffing at 1 FTE and total program costs at $106,650 or $5,079 per mile. 3. Provide funding for the requested maintenance and operation increases of $28,769 only. This would keep total staffing at 50 FTE and total program costs at $57,937 or $2,759 per mile. 4. Do not provide any additional funding for the trails. Trails will be maintained as time and funding is available. Attachments A. B. Existing Citywide Trails Map Estimated Citywide Trails Maintenance Miles 2005-2006 Attachment A Estimated Citywide Trails Maintenance Miles Quad Trail Name I Trail Type I Length (miles) I Notes sw La Costa Glen 3 1.5 Total Existing Miles 12.5 Miles SE NE Total 2006 Anticipated Trail Mileage 21.0 Miles Paved sidewalk and/or bike lanes, and sidewalk connections are included for only the above listed trails in this inventory. Villages of La Costa* 3 4 Calavera Hills Trailhead* Trail head Overlook Calavera Hills- Phase 11* Type 1 : Paved sidewalk and /or bike lane connection Type 2: Unpaved and paved multi-use trails and bike paths adjacent to Street (Circulation Element Trail) Type 3: Trail in Open Space or associated with a lagoon, (p)=Paved (u)=Unpaved * Will come online in 2005-06 as part of privately built trails that the City will maintain. NE NE SE NW College Ave 2 (u) I .5 Carlsbad Oaks North* 3 1.5 Poinsettia Lane - VLC-The Greens 2 (u) .75 Coaster Rail, Phase 1 2 (p) .75 Attachment B I Proposed 2005-06 Trail Mileage - 'La - C :osta PROGRAM OPTIONS I POINSETTIA PARK TENNIS COURTS Backaround In 1988, voters were asked to approve‘Proposition M to increase the Transient Occupancy Taxes (TOT) tax to pay for a regulation length and executive golf course, a tennis complex, and other recreational facilities. The Proposition failed to gain the necessary 2/3rd vote for passage. In January ‘89, the “Recreational Facilities Financing Committee” (citizens) was appointed by the City Council to review alternative options for how to fund these facilities. Regarding tennis, the Committee recommended ”development of a multi-court tennis facility, adequate for tournament play beginning in 1989, utilizing primarily Public Facilities Fees (PFF) funds currently designated for parks tennis projects”. The Council adopted this recommendation in March of ’89. Also, as part of the Committee’s recommendation, Propositions F & G were put to the voters in November ’89 and approved. Proposition F increased the TOT tax from 8 to 10%. Proposition G authorized (but did not require) the City to spend more than $1 million for “two public golf courses, one regulation and one short course, a multi-court tennis complex, two multi-purpose adult size fields, and an enclosed soccer field”. As a result of the Committee’s recommendation, a tennis complex (10 courts, one stadium court, and a club house/pro shop) was integrated into the Poinsettia Community Park Master Plan and approved by the City Council in August ’92. Implementation of the park master plan has been phased and to date, 3 of the 1 I tennis courts have been built. The proposed Capital Improvement Program (CIP) has the remainder of the tennis court complex scheduled for construction in Phase II of the park with design beginning in fiscal year 2009-10 and construction following in the next year. Phase II also includes a community centerlgymnasium, enclosed soccer field, tot lots, picnic areas, and additional parking. The first phase of Poinsettia Park provided 3 lighted tennis courts along with the other park amenities which included 3 ball fields, 1 soccer field, 2 basketball courts, a tot lot, 2 restrooms, open play area, picnic areas, temporary maintenance facility, and parking. There has been limited demand for new tennis facilities in the past years. The number of tennis classes being offered by the Recreation Department has remained fairly constant. Attendance in most classes is below the recommended maximum number of participants and, in a few cases, classes have been cancelled due to low enrollment. Last year, during the budget preparation, a request was made of Council to move up the funding for at least some of the planned tennis courts at Poinsettia Park. Council requested that staff do some more research into how other cities have funded and managed their tennis courts as well as what other projects would be delayed if funding for the tennis courts was advanced. This program option statement will provide the additional information for Council on the tennis complex options. Options The attached memo dated October 15,2004 (Attachment 1) provides the Council with 3 options for constructing additional tennis courts as well as two different ways in which they can be managed. The options are summarized below. Please refer to the memo for more information. Construction Maintenance Estimate* costs** Construction Options 1. Three options for the expansion of the tennis courts are shown below. $1 0,500 per year Build 3 additional courts (total of 6 courts) $450,000 2. $24,500 per year Build 7 additional courts (total 10 courts) $1,000,000 3’ Full Complex adding 7 lighted courts plus the ”stadium court” (total 11 courts), 3,000 sq ft clubhouse, and additional parking per the $3,000,000 $60,000 Poinsettia Park Master Plan per year $50,000- * Construction costs are based on master plan level design and are preliminary and subject to change. **Maintenance is estimated at $3,380 per courVper year and includes lights, cleaning, net repair, etc. For the full complex, facility maintenance costs are included as well as additional amounts for the maintenance of the grounds and parking lot. Does not include recreation programming. Construction Funding The remaining phase of the Park is funded with Public Facilities Fees (PFF) and is scheduled in the CIP with design beginning in fiscal year 2009-1 0 and construction in the following year. If Council chooses to build some, or all, of the tennis complex, it would require moving the funding up from the current projected time frame to the present. Under either scenario (moving up the project or leaving it as currently shown in the CIP), revenue projections in the CIP anticipate the PFF fund going into a deficit of approximately $4.8 million sometime after 2015. Moving up this project locks in the use of PFF funds for this project rather than giving Council options on what projects may need to be delayed if future revenues are not sufficient. The projections for the PFF fund and the scheduled projects as proposed in the 2005- 06 CIP are shown in Attachment 2. Recreation Programming The costs shown in the table above are for the basic maintenance of the facility and do not include any recreational programming. If Council chooses to accelerate the construction of any portion of the tennis complex, it would provide an opportunity for additional recreational options for the citizens. This could range from simply adding additional instructional classes (if only courts are constructed) to creating a full membership-based tennis program including a pro shop and full time contractual tennis professional (if full complex is constructed). All of these options can serve to generate revenues that may help offset the maintenance costs of the facilities. If the full complex is constructed, it could be managed by either the City or by a private group. Both of these options are discussed in the memo (Attachment 1). COUNCIL OPTIONS In summary, staff would like direction from the City Council on which of the following options they would like to pursue: I. Make no change in the Capital Improvement Program for Poinsettia Park. 2. Move up the construction of 3 tennis courts at a cost of $450,000 3. Move up the construction of 7 tennis courts at a cost of $1,000,000. 4. Move up the construction of 7 tennis courts, a stadium court, a 3,000 square foot clubhouse, and additional parking per the Poinsettia Park Master Plan at a cost of $3,000,000. Moving up any of the funding would take the PFF funds from fiscal year 2010-1 1 and move it to fiscal year 2005-06. Attachment 1 October 15,2004 TO: CITY MANAGER VIA: RECREATION DIRECTOR FROM: MANAGEMENT ASSISTANT - RECREATION RE: POJNSETTIA TENNJS COURT OPTIONS BACKGROUND During the review of the June 2004-05 proposed budget, several citizen’s appeared before the City Council to request that the City consider building additional tennis courts at Poinsettia Park. This request came about in large part due to the citizen’s difficulty in playing tennis at their preferred time (a.m.), as well as not having enough courts at one location. Up until recently, the tennis groups have been able to use the 9 tennis courts at Carlsbad High School. However, due to the priority use of Carlsbad High School, the local groups were not able to play tennis on these courts. Today, it is our understanding that the situation has been corrected. Council directed staff to investigate and bring back to them options in building additional courts at Poinsettia Park and to investigate alternatives for managing a tennis complex. Currently, Poinsettia Park has three (3) tennis courts with plans to develop a complete tennis complex including 7 more courts, a center court and a clubhouse. The tennis complex is part of Phase II of Poinsettia Park, scheduled to be constructed in FY 2010-14. The 3 existing courts at the park are available both for the public citizens’ use on a first come, first serve basis, and for the City’s instructional tennis program. The peak time to play is in the morning and early evenings. FISCAL IMPACT ON PFF FUNDS At the City Council budget meeting in June 2004, Finance commented that presently there is not enough money in the Public Facility Fee (PPF) to fund all the projects in the CIP timeline and move the tennis courts up in the CIP schedule. Finance further noted that if construction of the tennis courts was moved up, it would take priority over other projects proposed during that same time frame. The attached matrix identifies the construction costs, maintenance and programming costs, and revenue estimate projections for Poinsettia Park tennis courts, The option that Council selects will affect the fiscal impact to the City. DISCUSSION Staff has identified the following options far the expansion of additional tennis courts at Poinsettia Park. They are: I) Build 3 courts, 2) Build 7 courts, 3) Construct the entire tennis complex. OPTION #I - BUILD 3 ADDITIONAL COURTS The construction of 3 additional tennis courts will help alleviate some of the demand during peak playing times. However, based on discussions with the local tennis groups, they did not feel that a total of 6 courts would meet the needs of all of the tennis groups. This option would not allow the opportunity for the City to enter any type of publidprivate collaboration. The courts would be City operated, and available on a first come, first serve basis. It is estimated that the construction cost for 3 additional courts would be $450,000, with an annual park maintenance cost to be apprdximately $1 0,500 per year. Minimum revenue would come from tennis classes, or public reservations. OPTION 2 - BUILDING 7 ADDITIONAL COURTS The second option for the Council to consider is building an additional 7 tennis courts for a total of 10 courts. This option would provide time for local groups, as well as allow opportunities for tennis tournaments, special events, and tennis classes. As in Option 1, the City would operate and schedule the courts for the public use. The construction cost for the additional 7 courts is estimated to be $1,000,000, with the on-going annual park maintenance costs to be approximately $24,500. A minimum increase in revenue would come from tennis classes, or reservations. OPTION 3 - BUILDING ENTIRE TENNIS COMPLEX The third option is for the City to construct a tennis complex including 7 additional courts, the center court and clubhouse, at a cost of approximately $3,000,000. - A tennis complex design lends itself to a wider range of activities and a higher level of potential use resulting from organized tennis groups using the facility. It would allow the opportunity to generate revenue from classes, clinics, tennis meets, tournaments, tennis academies, memberships and retail sales. These tennis events will also generate local tax money from guests and spectators that would eat, shop and enjoy the local entertainment venues. TENNIS COMPLEX MANAGEMENT ALTERNATIVES Staff was also asked to investigate alternatives to manage and operate the tennis complex. In an effort to optimize City revenues, staff explored both a privately managed as well as a City managed tennis complex. CITY MANAGED TENNIS COMPLEX Staff completed in-depth research throughout the state to locate a City owned and City operated tennis complex. Based on our investigation staff was unable to find a City that was exclusively managing a facility. This is primarily due to the high costs of staffing a tennis complex and the expenses associated with maintaining a tennis complex. If the Recreation Department were to staff a tennis complex, they would take a conservative approach with an annual operational cost to the City estimated at $350,000 - $380,000. The revenue is estimated to be $310,000 - $330,000 with a net loss of approximately $40,000 - $50,000. The primary revenue source would be from tennis classes and reservations with a small amount from the pro-shop and concessions. Based on our research, it appears that a City managed tennis complex would not provide the City an opportunity to maximize the full potential of revenue. PRIVATELY MANAGED TENNIS COMPLEX The final option for Council to consider is a privately managed tennis complex. The terms of the management arrangement would be established in the contract. The contract could be offered to a private tennis management group that is either set up as a non-profit, a not-for-profit organization or a company. Based on staffs research, the responsibilities for management and the level of costs and revenue received by a city, varies based on their management priorities and current contract negotiations. These ranges also tend to vary based on the difference in the age of the facility and the target market they are trying to reach. As listed in our attachment of estimated ctty costs and revenue projections, we have select two different privately managed tennis facilities. The first example, the City of San Diego Balboa Tennis Complex is managed by the Balboa Tennis Club a not-for-profit private company. They have 24 courts, one stadium court, a clubhouse with pro-shop, concessions, a meeting room and locker facilities. The Balboa Tennis Club assumes all the operational responsibilities including daily maintenance. The Balboa Tennis Club also pays for 50% of the major repairs with the City of San Diego covering the other 50%. The Tennis Complex generates $292,000 in gross revenue per year. The City of San Diego currently receives net revenue of $12,000 per year from rent. At this time they are not collecting a percentage of the revenue from classes or concessions. The rental fee is extremely low due to their emphasis on having an affordable tennis program and expanding their junior tennis programs. The second example, the City of Sunnyvale is managed by the Sunnyvale Tennis Club a non- profit community organization. They have 16 courts, a pro-shop, concessions, lockers and a meeting room. The Sunnyvale Tennis Club pays for all costs associated with managing the reservations, classes, marketing and concessions but they do not pay for either the daily maintenance or the major repairs. The City collects an annual rent in the amount of $75,000 and in addition collects 5% of gross revenue over $51 5,000. The Tennis Complex generates over $780,000 in gross revenue per year. At this time the City is collecting over $100,000 less annual M&O costs of $40,000 per year for a net revenue of $60,000. They are focusing on expanding their memberships and their fees are in the mid to upper range for a City owned facility. Lolly Sangster Management Assistant Attachment cc: Assistant City Manager Finance Director Recreation Services Manager Park Development Manager II e 0 0 0 0 64 0- 4 iri F C v) 8 C 0 0 3 fn C .- c, L- c s 8 - 0 0 In w tt) v) fn .. c 8 C 0 s 0 v) t 2 c 0" 0 0 0 (D tf) 0 0 w 0- c i/i c. 8 8 C m c Q c c .- s 0 0 0 u?? 7 iri c, v) 8 8 c m c Q c g 0 0 ti3 0 0 0 0 8 T C 0- 4 .. E 8 c - c Attachment 2 PROGRAM OPTIONS 1 FIRE DEPARTMENT - AERIAL APPARATUS Bac karound Current and historic fire service delivery utilizes several types of fire apparatus that are configured to deliver basic fire department disciplines. Examples of apparatus types include fire engines, ambulances, command vehicles and aerial apparatus, commonly referred to as “Ladder Trucks”. In standard fire ground operations each apparatus type has assigned duties to perform. The aerial apparatus is responsible for the following duties: placement and manning of ground and aerial ladders, forcible entry, search and rescue, ventilation of burning structures, elevated water stream operations, control of on-site utilities, vehicle extrication, and post incident salvage and overhaul. The aerial apparatus provides many essential aspects of fire ground operations far beyond just providing an aerial capability and is considered, by the Fire Department, a critical component in comprehensive fire service delivery. Since incorporation, the City of Carlsbad Fire Department has operated without an aerial apparatus. Due to changes in population, density, types of businesses and industry, the Carlsbad Fire Department is requesting that Council consider purchasing and placing in service a fire aerial apparatus. Operations Safe and effective firefighter roof access and egress is critical and primary for structure ventilation, fire control and extinguishment, and rescue. To ensure firefighter safety, national standards require that during fire suppression roof activities there must be two (2) exterior opposing ladders. The Carlsbad Fire Department currently operates with 35-foot ground ladders, which are the longest ground ladders that can be carried on a fire engine and are designed, at maximum extension, to access a third story window from a stable and flat footprint at the base of the structure. The impact of architectural changes, including set backs, roof design and density, have resulted in the existence of over 1,000 structures within the City that cannot be properly laddered with the existing complement of ground ladders per this standard. There are also a limited number of structures that cannot be laddered at all due to steep-pitched roofs, set backs and landscape features. The Fire Department also identified “special needs” structures, including the Encina Power Plant, Legoland, Aviara Resort, Carlsbad by the Sea, Neimans, and numerous 3-story elder care facilities that pose unique reach or access challenges. An aerial apparatus will address a majority of these issues. A fire apparatus with aerial capabilities would facilitate roof access for ventilation allowing the toxic heat and smoke to be drafted away from the structure. It provides horizontal and vertical reach for victim rescue and provides a safe platform for firefighters to conduct rescue and extrication operations. It also Fire Aerial Apparatus Page 2 of 3 would provide the ability to elevate streams of water through a high volume nozzle attached to the tip of the ladder. This provides greater reach and accuracy in water placement. Currently the Carlsbad Fire Department can only lob water from ground level, which provides limited water reach that is significantly less effective in fire suppression. Elevated master streams are also used in mass emergency decontamination during a hazardous materials incident. Standards and Guidelines Benchmarking is an adopted method by which same service delivery agencies can compare and contrast operational and industry standards. The International City / County Managers Association collects benchmarking data on a voluntary basis from cities across the United States. In their 2003 report, it stated that of the 65 fire departments reporting, 64 of them had at least one (1) aerial apparatus. The one (1) fire agency with no aerial apparatus had a population of less than 13,000. The August 2003 League of California Cities Survey revealed that of the 20 California cities with a population within 10% of the 2003 population of the City of Carlsbad, every city, except Carlsbad, had at least one (I) aerial apparatus. The National Fire Protection Administration (NFPA) sets two (2) standards pertinent to aerial apparatus. One standard relates to laddering occupancies and one standard relates to the complement of apparatus required to respond to a first alarm structure fire. An aerial apparatus will meet both of these NFPA standards. Mutual Aid All four cities surrounding the City of Carlsbad currently have one or more aerial apparatus in service and have had one in service for over ten years. Pursuant to adopted industry standards, the complement of fire apparatus dispatched to a structure fire response includes three (3) fire engines, one (I) Battalion Chief, one (1) medic ambulance and one (1) aerial apparatus. Currently, the aerial apparatus request is filled by neighboring agencies under a Boundary Drop / Mutual Aid Agreement. Through Mutual Aid requests, aerial apparatus from surrounding communities respond into Carlsbad approximately 160 times in the past year (average of 13 times per month). Of those responses, 103 were for fires, 32 were for traffic collisions and the remainder was for miscellaneous calls for assistance. The aerial capability of the aerial apparatus was utilized to ladder an occupancy nine (9) times during the reporting period. The availability of aerial apparatus is predicated upon each city’s service demands and their location at the time of dispatch. This impacts their response time to incidents in Carlsbad. Tvpe of Aerial Apperatus The Fire Department studied the need for and the appropriate type of aerial apparatus to meet Carlsbad’s requirements. The Fire Department concluded Fire Aerial Apparatus Page 3 of 3 that a 100-foot tillered “Quint” aerial apparatus would best fit the current and future firefighting and rescue needs in the City of Carlsbad. A Quint apparatus has the same general functional capability as existing fire engines, in addition to aerial capability. Tillered means an apparatus with a tractor-trailer configuration and rear wheel independent steering. The tillered recommendation stems from the need for critical equipment storage capacity, smallest possible turning radius, reduced axle weight and braking distances. By design, the tillered aerial apparatus has exceptional maneuverability with a turning radius comparable to Carlsbad’s current fire engines. Any aerial apparatus has a minimal number of access challenges due to its length and gross weight, including steep-pitched driveways, limited angle approaches and lengthy unpaved roads. In these instances, a fire engine or an off-road vehicle would be utilized in a fire or rescue response. The use of an aerial apparatus in lieu of a fire engine does not require any additional personnel. Financial The approximate cost of a Quint aerial apparatus is $825,000 as compared to approximately $415,000 for a fire engine. The Fire Department deferred the replacement of a fire engine (F399) that was originally scheduled for replacement in FY 2004/05. The requested Quint purchase is in lieu of the replacement fire engine purchase. There is $415,000 available in the Fleet Replacement Fund for the purchase. The Fire Department is expecting to have $415,000 in unspent appropriations at the end of this year, which they are requesting to put toward the purchase of the Quint. This would provide sufficient funds for the purchase. The projected annual maintenance cost of a tillered Quint aerial apparatus is approximately $6,000 more than a fire engine. Council Options In summary, staff would like direction from the City Council on which of the following options they would like to pursue: 1. Purchase and place in service in FY 2005-06 a 100-foot tillered Quint aerial apparatus costing approximately $825,000. 2. Do not purchase a tillered Quint aerial apparatus at this time and purchase a fire engine costing approximately $41 5,000 for the scheduled replacement of fire engine F399. Carlsbad will continue to rely on Boundary Drop and Mutual Aid agreements to provide aerial apparatus response. Attachment I : Photo of fire Quint aerial apparatus I PROGRAM OPTIONS I I FIRE DEPARTMENT - AERIAL APPARATUS (Attachment) I Photo of 100-foot Tillered Quint Aerial Apparatus PROGRAM OPTIONS I BOYS AND GIRLS CLUB Backqround on the City's Fundinq of Community Requests Historically, Council has received numerous requests to fund special projects for the community. In the 199O's, a program was put in place by which all requests could be evaluated and the programs funded that would do the most to enrich the quality of life for Carlsbad's residents and visitors. The program, called the Community Activity Grants, is designed to complement other City programs by providing money for services that may not be eligible for funding under any other City program. In 1999, Council set aside $1 million from which the interest would be used to fund these requests from the community. The focus of the grant funds is to fund start-up costs or other one-time costs to implement new programs; the grants are not meant to be an ongoing source of funding for the programs. There is a three-year limit on grant funding from the Community Activity Grants. To be awarded a grant, an organization or individual must submit an application to the City. A seven-member citizen committee reviews the application and makes recommendations to Council on allocating the funds. The grants are typically awarded in December of each year. The program also has reporting requirements to ensure that the grant monies are spent as they were intended. Exhibit A includes a list of community funding requests that Council has funded through the Community Activity Grants process during the past few years. For 2005-06, $30,000 has been budgeted for the Grants. Other Community Funding Outside the Process Despite the availability of the Community Activity Grants, Council continues to receive requests for funding programs outside the grant process. Sometimes the reasons have been that the timing of the grant process does not meet the program needs; other times the proponent has not felt that there were sufficient funds available from the grants. Recent requests and approvals are also shown on Exhibit A. Community Development Block Grant (CDBG) Program The federal government's Community Development Block Grant (CDBG) Program provides grants to cities and counties to help develop viable urban communities through the provision of decent housing, a suitable living environment and by expanding economic opportunities for low and moderate income persons. The City allocates these funds to various community groups through a proposal process. Each eligible proposal is reviewed and evaluated based on the following criteria: 1) Organizational ability/capacity; 2) Financial capacity/stability; 3) Benefits and beneficiaries; and 4) Readiness to implement the proposal. The City Council appoints a CDBG Funding Advisory Committee to review proposals and develop funding recommendations for Council consideration. Generally, CDBG funds are only available for those programs addressing the needs of the low and moderate income population. For that reason, the Boys and Girls Club request would not be eligible. BOYS and GIRLS CLUB Page 2 of 3 The Boys & Girls Club has been a part of the Carlsbad community since 1952. The Club offers a variety of recreational, educational, athletic and social programs for youth, ages 6 to 18. The Club offers programs to all children, with an annual membership fee of $25.00. Scholarships are offered to disadvantaged children and no child is excluded from the Club because of an inability to pay. The Club’s original location in the Village of Carlsbad has been renovated five different times between 1952 - 1999. The most recent renovation, completed in 1999 marked the most dramatic changes in the Club, with a dedicated technology center, covered swimming pool, gymnasium and teen center. In 1987, a second facility was added in La Costa to serve the southern sector of the city. The Boys & Girls Club estimates that over the past 53 years the Club has served over 50,000 youth and families and has raised over $25,000,000 to fund and operate the two facilities. There are currently approximately 1,900 members. The Boys & Girls Club is building another permanent club in Bressi Ranch. The ground breaking is scheduled for September 2006 and the facility is scheduled to open in late 2007. The new facility will be approximately 18,000 square feet and have the capacity to serve up to 300 children per day. The facility will have an indoor gymnasium, a 20 computer technology center, an art room, a large open multi use game room, a TV lounge and an outdoor patio area. The facilities approximate construction cost will be $5,000,000. The Boys and Girls club is a non-profit organization and will not be paying prevailing wage on the construction. The Boys and Girls club is requesting $999,999 (see Exhibit B) as a donation from the City of Carlsbad. The donation would not be for construction but would fund the following items: Fixtures, furnishings and equipment $325,000 Capital campaign management and marketing 175,000 General operations 499,999 $999,999 -----I---------- The fixture, furniture and equipment donation would pay for the following items: 1. Sports Equipment $70,000 2. Game Room Furnishings 40,000 3. Office Equipment and Furnishings 40,000 4. Technology Center Equipment (including computers) 65,000 5. Phone System 25,000 6. Dance, Drama, Music, other room furnishings 60,000 7. Various miscellaneous items 25,000 BOYS and GIRLS CLUB Page 3 of 3 The Capital campaign management and marketing donation would fund the hiring of a full time Development Coordinator for the Boys and Girls Club until the conclusion of the campaign. The Development Coordinator would act primarily as a fundraiser for the organization. The donation to the General Operations would fund the day-to-day operations at the Bressi Ranch facility. A contribution of $499,999 would fund the operations for approximately one year. The Boys and Girls Club has committed to matching the contribution made by the City with, at minimum, a four-to-one match. Facility Joint Use The Boys and Girls club has offered to provide access to the indoor basketball facility to the City during off hours. The off hours for the gym typically are weekends, late afternoons and evenings. COUNCIL OPTIONS The following are some options for Council’s consideration. If Council authorizes any contribution, staff would recommend that Council include the 4: 1 matching requirement as a condition of the request. 1. Direct the Boys and Girls Club to request funding through the Community Activity Grants process. 2. Fund the request outside of the process. If this option is selected, staff will need additional direction on the following: 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 time. Exhibit A COMMUNITY ACTIVITY GRANTS PAST RECIPIENTS Palomar Shuttle Exhibit A Artsplash 2002 (General fund) Artsplash 2004 (General Fund) COMMUNITY FUNDING OUTSIDE THE GRANTS PROCESS PAST RECIPIENTS $ 10,600 $ 15,000 I Join Hands Save a Life [matchina funds Daid out of General fund] I $ 25.000 I Carlsbad High School Wind Symphony (GF matching funds) I Hiahwav 101 Association (General fund) I $ 5.000 I $ 7,000 Fraternitv House $ 5.000 Fraternity House Injured Marines Semper Fi Fund SPECIAL EVENT GRANTS PAST RECIPIENTS $ 4,000 $25,000 Exhibit B Boys & Girls Clubs of Carlsbad Request to the City of Carlsbad for $999,999 Boys and Girls Clubs of Carlsbad (“Clubs ’7-Mission Statement To provide activities and experiences that enrich the lives of young people in our community. Boys & Girls Club of Carlsbad Background The Boys & Girls Clubs of Carlsbad h,as played an integral role in North San Diego County since 1952. The “Clubs” offer a variety of recreational, educational, athletic and social programs for youth, ages six to eighteen. The “Clubs” are proud to provide its programs to all children, with a minimal $25.00 annual membership fee. Scholarships are also provided to children from disadvantaged circumstances, therefore no child is ever excluded due to the lack of ability to pay. Boys & Girls Clubs are traditionally known as “safe havens,” stable and supportive places where young people can develop the skills and self-confidence they’ll need to succeed in a competitive world. The multiple programs offered at the Boys & Girls Clubs of Carlsbad provide opportunities for leadership and personal growth improving the lives of our 1900 + members by supporting their transition to adulthood. Conservative estimates show that over the past 53 years the Boys & Girls Clubs have served over 50,000 youth and families and have raised over $25,000,000 to fund and operate our two facilities. Need There are many reasons why the Club feels there is a need to expand out services. First and foremost, kids need a positive outlet during the after school hours when parents are working. Another reason is that our La Costa branch is a 23-year-old “temporary” doublewide trailer facility that is in need of repair. Finally, our landlord the Christ Presbyterian Church, has embarked upon their own capital campaign to expand their Church and we will eventually be asked to vacate our parcel to accommodate their expansion. Boys & Girls Clubs Request: It has come to our attention that if the Club is to use any funds for the construction of our new facility that prevailing wages must be applied to the entire project, thus increasing the cost of the facility up to 30%. In an effort to allow the city to still support the Clubs project the following is proposed as an alternative to our original ask for support. Fixtures, Furnishings and Equipment 350,000 Capital Campaign Management and Marketing 150,000 General Operations 499,999 Total 999,999 Exhibit B Fixtures, Furnishings and Equipment- This is a current line item in the Capital Campaign budget. Included are such items as: 1. Sports Equipment $70,000 2. Game Room Furnishings $40,000 3. Office Equipment and Furnishings $40,000 4. Technology Center Equipment (including computers) $65,000 5. Phone System $25,000 6. Dance, Drama, Music, other room furnishings $6 0,O 0 0 7. Various miscellaneous items $5 0,000 Capital Campaign Marketing and Administration- This line item includes the professional management and marketing of the campaign including the salary and benefits for a full-time Development Coordinator until the conclusion of the campaign. General Operations- This line item would fund the general operations of the club as it currently operates. Any funding provided by the city on this line item would in essence “replace” our current fundraising efforts and allow us to contribute to our own campaign. For instance, if we were to be funded for general operations at $200,000 we could then allocate our Annual Dinner Auction and Golf Tournament revenue towards the Capital Campaign. U __ ----- I--- I i June 21,2005 The Honorable Claude “Bud” Lewis Mayor, City of Carlsbad Carlsbad City Hall Carlsbad, CA 92008 Dear Mayor Lewis: I would like to request that if the Resolution of Intention for the proposed Carlsbad Tourism Business Improvement District has been calendared for the June 28 council meeting that it be pulled until hrther notice. I am making this request on behalf of the Cdsbad Convention and Visitors Bureau and as the chairman of that organization. It is my belief, and one that is shared by many, that because of pressures that have been exerted on some of your fellow council members and city staff by San Diego North Convention and Visitors Bureau, the situation has become convoluted and cannot move forward at this time. However, I do believe that we can get this process back on track and I look forward to meeting with you as soon as possible to discuss specific concerns and how we can overcome the current impasse. Mayor, I believe that the overriding concern on the part of San Diego North CVB has been to maintain a consistent level of funding fiom the City of Carlsbad to support their million-dollar plus budget. That’s understandable, however, it is clear that this Escondido-based tourism organization desires to secure direct hnding from the future revenue stream of the BID by favoring language crafted in the Resolution of Intention that would essentially eliminate the Carlsbad CVB as the organization to receive, administer and manage the BID funds. Without specific language as proposed in the City Attorney’s second draft of the ROI, the Carlsbad CVB will be eliminated. I know that you desire to have this bureau be the organization that would work in concert with the advisory board, and it’s my firm belief that language in Section 4 needs to be restored to the reading of draft #2 as presented by the City Attorney. By accomplishing this in an updated draft of the ROI, I believe that a huge issue will be eliminated that seemingly has had the potential to derail the process. I hope that you will agree. Additionally, the CVB understand and supports that the BID Advisory Board may recommend allocation of specific dollars to other tourism organizations, including the San Diego North CVB, for specific contracted services as the City currently contracts. Decisions made by the Advisory Board would clearly take the onus off the council. Please know that I have closely listened to your concerns and have taken every one of your suggestions to heart regarding the proposed BID. I really do not believe that you or your colleagues on council wish to go through this same process year-after-year. Again, my belief, also shared by others, is that the best route for us to travel is by moving forward on the 1994 law that allows for a petition to come forward to council, together with a management plan of the Carlsbad Convention 81 Visitors Bureau 400 Carlsbad Village Drive, Carlsbad, California 92008 (760) 434.6093 FAX (760) 434.6056 www.visitcarkbad.com info@visitcarlsbad.com “Tho nffirinl Dpstinatinn Marketinn nrnnni7ntinn nf Cnrlshnri Cniifnrnia” proposed BID. This process would further demonstrate the support by the industry for the BID as it would require a petition of Carlsbad lodging properties in the affirmative for passage. Additionally, by coming in under the 1994 law, the Carlsbad CVB can have three uninterrupted years of operation. This would allow the bureau to plan, implement, manage and track programs on more than a one-year cycle. Although the 1994 law does not mandate an advisory board or annual audit, those are elements that can be written into the ordinance by this council. Additionally, the BID - regardless of whether its been created under the 1989 or 1994 law - will still have to appear annually before council to present its annual report, budget and accountability of expenditures. And, of course, we defer to you in making appointments to the advisory board. Again, regardless of which law the BID is filed under, the activities of the BID will be controlled by the industry that’s assessed. With this in mind, you can be assured that, by having a three-year sunset provision under the 1994 law, you and your colleagues on council will not have to be bothered by the kind of aggravation that seems to have enveloped over the last two months. It’s unfortunate that a great idea has somehow gone sideways for the time being, but I am an optimist and believe the BID will become a reality for Carlsbad and a premier example of public-private partnership. On the issue of funding for the Carlsbad CVB, I understand that this matter may be addressed this evening. It is our desire to maintain status quo funding to continue with the programs and services currently performed by the bureau. If and when a BID is finalized, I believe that we can enter into good faith negotiations that will be beneficial to all parties concerned. Therefore, I am asking that council approve our funding request in the amount of $408,000. In closing, I want you to know that I share completely in your desire to get this BID approved in a manner that benefits the lodging industry in Carlsbad. I believe that if we can set a time to meet in the very near future, that we quickly shed the sideshow theatrics that have worked against us. We share a common vision for a public-private partnership that can serve as a model for possibly other BID’S in Carlsbad. It’s a win-win for everyone, and I am here to lend my assistance in helping to move this process forward. Your leadership and support for this partnership is needed now, more than ever, and I welcome you back! Thank you very much for your time and consideration of the items I’ve presented in this letter. Sincerely, / Patrick Fearn, Chairman Carlsbad Convention and Visitors Bureau The Coast News Decreed A Legal Newspaper by the Superior Court of San Diego County. Mail all correspondence regarding public notice advertising to The Coast News, P.O. Box 232-550, Encinitas, CA 92023 (760) 436-9737 Proof of Publication STATE OF CALIFORNIA, ss. COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am principal clerk of the printer of The Coast News, a newspaper printed and published weekly and which news- paper has been adjudged a newspaper of general circulation for the cities of Del Mar, Solana Beach, EncinitadCardiff, Carlsbad, Oceanside, San MarcosNista and the County Judicial District by the Superior Court of the State of California, County of San Diego (8/4/94, #677 114, B2393, P396); and that the notice, of which the annexed is a print- ed copy, has been published in, each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: June 3. 2005 I certify under penalty of perjury that the foregoing is true and correct. Executed at Encinitas, County of San Diego, State of on the 9th day of June 2005. eF Clerk of the Pbter Space above for County Clerk's Filing Stamp PROOF OF PUBLICATION (2010 6% 2011 C.C.P.) STATE OF CALIFORNIA County of San Diego This space is for the County Clerk's Filing Stamp I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above- entitled matter. I am the principal clerk of the printer of Proof of Publication of North County Times Formerly known as the Blade-Citizen and The Times-Advocate and which newspapers have been adjudicated newspapers of general circulation by the Superior Court of the County of San Diego, State of California, for the City of Oceanside and the City of Escondido, Court Decree number 171349, for the County of San Diego, that the notice of which the annexed is a printed copy (set in type not smaller than nonpariel), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: June 03,2005 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at SAN MARCOS California This 03'd Day of June, 2005 Signature Jane Olson NORTH COUNTY TIMES Legal Advertising W'ICE OF PUBLIC HEARING CITY OF CARLSBAD Written and tele hone inquiries ma be directsd'to Lisa Hildabrand of the Finance Department, rS3p Faraday Avenue, Carlsbad; 602-2430. NCT 1804WM June 3,2005 NOTICE OF PUBLIC HEARING CITY OF CARLSBAD The City of Carlsbad will hold a public hearing on Tuesday, June 21,2005 at 6:OO p.m. in the Council Chambers of City Hall, 1200 Carlsbad Village Drive, Carlsbad, California, to consider adoption of the 2005-06 Operating Budget and the 2005-06 to Buildout Capital Improvement Program Budget. This budget includes an appropriation of the 2005-06 AB 3229 funds in the amount of $1 35,000 to be used to fund the community policing program. The City Council will consider approving selected City development fees, general fees, and the Appropriation Limitation for fiscal year 2005-06. The Carlsbad Municipal Water District Board will also consider adoption of the Carlsbad Municipal Water District Operating and Capital Improvement Program Budgets, and the Housing and Redevelopment Commission will consider adoption of the Redevelopment Budgets. their views and comments to the City Council. Interested parties are invited to attend this meeting and present Copies of the budget and proposed fee changes are available for public inspection at the City Clerk’s office, 1200 Carlsbad Village Drive, or the two libraries: Cole Library, 1250 Carlsbad Village Drive, Carlsbad; and Dove Library, 1775 Dove Lane, Carlsbad. Written and telephone inquiries may be directed to Lisa Hildabrand of the Finance Department, 1635 Faraday Avenue, Carlsbad; 602-2430.