HomeMy WebLinkAbout2008-11-18; City Council; 19638; Economic Overview & Other Budget AdjustmentsJOINT MEETING - CITY OF CARLSBAD,
HOUSING AND REDEVELOPMENT COMMISSION
AND CARLSBAD MUNICIPAL WATER DISTRICT
AGENDA BILL
12
19.638AB#
MTG.
DEPT. FIN
11/18/08 ACCEPT PRESENTATION ON
ECONOMIC OVERVIEW AND
AUTHORIZE ADDITIONAL
APPROPRIATIONS AS A RESULT OF
THE STATE OF CALIFORNIA BUDGET
AND OTHER BUDGET ADJUSTMENTS
DEPT. HEADy^g
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
• City Council: Accept presentation on the economic overview for the City of Carlsbad.
Adopt Resolution No. 2008-307 authorizing the additional appropriations and
expenditures of a total of $550,300 in various funds to fully compensate the General
Fund for services provided by General Fund departments to these funds.
• Housing and Redevelopment Commission: Adopt Resolution No. 460
authorizing the appropriation of approximately $300,000 from the Carlsbad
Redevelopment Agency (RDA) for payment to the Education Revenue Augmentation
Fund (ERAF) as required by the State of California (State) Budget Act of 2008.
Authorize the appropriation of a total of $28,600 from several redevelopment funds to
fully compensate the General Fund for services provided by General Fund departments
to these funds.
• Carlsbad Municipal Water District: Adopt Resolution No. 1344 authorizing the
appropriation and expenditure of $213,800 in the Water Operations Fund and $62,900 in
the Recycled Water Operations Fund to fully compensate the General Fund for services
provided by General Fund departments to these funds.
ITEM EXPLANATION:
The United States is experiencing an economic slow down especially with respect to the
housing market. It is important for the City of Carlsbad to monitor the economy and assess
the potential impact on the City of Carlsbad's finances. This presentation will help provide
an overview of the national, state and local economies, with specific information regarding
the City of Carlsbad's economy as well as the impact of the slowing economy on Carlsbad
and its neighboring cities. This information will help the City be aware and proactive as the
economic uncertainty continues.
DEPARTMENT CONTACT: Brent Gerber 760-602-2428 bgerb@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE D
UNKNOWN
RETURNED TO STAFF D
OTHER - SEE MINUTES D
Page 2
In addition, the State of California is having financial difficulties which are affecting local
governments including the City of Carlsbad. The State is required to pass a balanced budget
each fiscal year on or about the 15th of June. For Fiscal Year 2008-09, the proposed state
budget was projecting a $15.2 billion deficit. There were several proposals considered to
reduce this deficit. Some of the proposals had implications to the City of Carlsbad (City).
These proposals centered around the borrowing of local agency funds, percentage
reductions or no funding for local programs, and the taking of redevelopment agency funds.
With the passage of the State's Budget Act of 2008 on September 23, 2008, 85 days late,
the City now has a more complete understanding of the implications from the Budget Act of
2008. The following is a brief explanation of the decisions that effect the City from the
Budget Act of 2008.
For the City of Carlsbad:
• There will be no "borrowing" of Proposition 1A - Local Revenues and Proposition 42 -
Transportation Revenues. Proposition 1A created limitations on the State Legislature's
authority to change and take local revenues including the reduction of Sales Tax and
shifts of Property Taxes. Proposition 42 requires that gasoline sales tax revenues be
used annually for state and local transportation purposes. Within Proposition 1A and 42,
there is language that allows the State to "borrow" these local revenues during severe
state financial hardships, and pay the local agencies back within a three year period.
• The Citizens Options for Public Safety (COPS) funding is estimated to be slightly less
than the level in Fiscal Year 2007-08, or $40,000 less than the current Fiscal Year 2008-
09 estimated revenue.
• The Booking Fees paid by the State to the County of San Diego (County) for the
incarceration of detainees into the County jail system by the Carlsbad Police Department
will be reduced by 10% or $22,000 of the Fiscal Year 2007-08 amount paid to the County
by the State.
• The California Library Services Act (CLSA) Grant funding for the Library Department was
reduced by 10% of the Fiscal Year 2007-08 amount or $25,600 less than the current
Fiscal Year 2008-09 estimated revenue.
For the Housing and Redevelopment Commission of the City of Carlsbad:
• It is required that a contribution to ERAF from the RDA's property tax increment revenues
in an estimated amount of $300,000 be completed by May 10, 2009. ERAF is a method
that the State uses to reallocate property tax increment revenue away from the local
redevelopment agencies and into the local school system, so that the State can reduce
its funding to schools.
The items listed above are the State of California budget impacts that are known at this time.
In addition, the State of California is currently projecting that their revenues may be $11.2
billion less than budgeted for this fiscal year. More impacts may fall upon the City of
Carlsbad and other local governments as the state continues to struggle with balancing their
budget.
Page 3
In reviewing the City's budget and revenues, it was noted that the Non-General Fund
departments were not being charged enough for services that the General Fund
departments provide to these funds. Miscellaneous interdepartmental charges represent
charges made to funds outside of the City's General Fund, for services performed by
departments within the General Fund. Based on the most recent Cost Allocation Plan (CAP)
performed by an external consultant, these costs totaled $2.7 million for Fiscal Year 2008-09
as shown in Exhibit 4. Additional appropriations are needed in these funds in order to
properly charge the funds outside of the General Fund in Fiscal Year 2008-09. By not
adjusting the current appropriations, the General Fund will be undercharging these various
funds by a total of $550,300, thereby having to absorb these additional costs.
FISCAL IMPACT:
For the City of Carlsbad:
• While there is a fiscal impact to the City for the reduction in COPS funding ($40,000),
there are sufficient savings in the prior year to cover any revenue shortfall for the existing
current year appropriation. The current estimated unreserved fund balance as of June
30, 2008 for the COPS Fund is $102,559.
• There is projected to be no fiscal impact to the City Budget for the Police Department due
to the booking fee reduction ($22,000). If the booking fees are higher than expected, the
Police Department plans to absorb any expenditure not covered by the State in their
current budget.
• While there is a fiscal impact to the City Budget for the reduction in CLSA funding
($25,600), there are sufficient savings from the prior year to cover any revenue shortfall.
• It is recommended to increase the Non-General Fund appropriations by $550,300 (as
shown in Exhibit 4) to fully compensate the General Fund for services provided to these
other funds.
For the Housing and Redevelopment Commission of the City of Carlsbad:
• It is recommended that the Housing and Redevelopment Commission increase the RDA
Budget appropriation by approximately $300,000 for the contribution to ERAF. This is an
estimated 7.7% of the property tax increment payment that RDA is expected to receive
for Fiscal Year 2008-09. The contribution will be made to the County of San Diego
Auditor and Controller for deposit into the ERAF. At this time the State Director of
Finance has not made the exact calculation for the contribution. The estimate is based
on the formula that will be used by the State Director of Finance and was calculated by
the California Redevelopment Association. There is a sufficient fund balance to cover this
additional appropriation.
• It is recommended that the Housing and Redevelopment Commission authorize the
additional appropriation of $16,300 in the Village Redevelopment Operations Fund,
$5,300 from the Village Low/Mod Fund, $6,600 in the South Coast Redevelopment
Operations Fund and $400 in the South Coast Redevelopment Low/Mod Fund to fully
3
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Operations Fund and $400 in the South Coast Redevelopment Low/Mod Fund to fully
compensate the General Fund for services provided. There are sufficient fund balances
to cover these additional appropriations.
For the Carlsbad Municipal Water District:
• It is recommended to increase the appropriation by $213,800 in the Water Operations
Fund and $62,900 in the Recycled Water Operations Fund to fully compensate the
General Fund for services provided to these funds. There are sufficient fund
balances to cover these additional appropriations.
ENVIRONMENTAL IMPACT:
The proposed presentation and actions included in this report do not constitute a "project"
within the meaning of the California Environmental Quality Act and, therefore, do not require
environmental review.
EXHIBITS:
1. Resolution No. 2008-307 authorizing the additional appropriation of a total of
$550,300 in various funds to fully compensate the General Fund for services provided by
General Fund departments to these funds.
2. Adopt Resolution No. 460 authorizing the appropriation of approximately
$300,000 from the Carlsbad Redevelopment Agency (RDA) for payment to the Education
Revenue Augmentation Fund (ERAF) as required by the State of California (State)
Budget Act of 2008. Authorize the appropriation of a total of $28,600 from several
redevelopment funds to fully compensate the General Fund for services provided by
General Fund departments to these funds.
3. Resolution No. 1344 authorizing the appropriations of $213,800 from the Water
Operations Fund and $62,900 from the Recycled Water Operations Fund to fully
compensate the General Fund for services provided by the General Fund departments to
these funds.
4. Miscellaneous Interdepartmental Charges Adjustments
Exhibit 1
1 RESOLUTION NO. 2008-307
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD AUTHORIZING THE ADDITIONAL
3 APPROPRIATION OF VARIOUS FUNDS FOR GENERAL
4 FUND SERVICES PROVIDED.
5 WHEREAS, the City Council adopted the City's 2008-09 Budget on June 24,
6
2008;
7
WHEREAS, the General Fund provides services to several funds and the8
9 General Fund should be fully compensated for those services;
10 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
11 Carlsbad, California, as follows:
12 1. That the above recitations are true and correct.
2. That the Finance Director is authorized to increase current appropriations
14
by a total of $550,300 in the various funds listed in Exhibit 4 and is authorized to
15
transfer said funds to the General Fund to fully compensate the General Fund for
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services provided.17 K
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad
City Council, Carlsbad Housing and Redevelopment Commission and Carlsbad Municipa
Water District Board of Directors held on the 18th day of November, 2008, by the
following vote to wit:
AYES: Council Members Lewis, Hall, Packard and Nygaard.
NOES: None.
ABSENT: Council Member Kulchin.
lAUDEAlLEWIS, Ma>or
ATTEST:
LJORRAIN£]M.
(SEAL) U
city cierK
Exhibit 2
1 RESOLUTION NO. 460
2 A RESOLUTION OF THE HOUSING AND
REDEVELOPMENT COMMISSION OF THE CITY OF
3 CARLSBAD, CALIFORNIA, AUTHORIZING THE
4 ADDITIONAL APPROPRIATION OF THE
REDEVELOPMENT AGENCY AND HOUSING AUTHORITY
5 FOR A STATE OF CALIFORNIA REQUIRED
CONTRIBUTION TO ERAF AND MISCELLANEOUS
6 BUDGET ADJUSTMENTS.
WHEREAS, the Housing and Redevelopment Commission of the City of8
9 Carlsbad, California adopted its 2008-09 Budget on June 24, 2008; and
10 WHEREAS, the State of California adopted its budget on September 23, 2008;
11 and
12 WHEREAS, with the adoption of the State of California budget legislation, it is
13 required that redevelopment agencies within the State of California shift property tax
14 increment revenues to the Education Revenue Augmentation Fund for K-12 schools
and community colleges during Fiscal Year 2008-09; and
16
WHEREAS, in accordance with the State of California legislation, the Carlsbad
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Redevelopment Agency must make a special one-time payment estimated at $300,000,
18
as will be determined by the State Director of Finance to the County of San Diego
20 Auditor and Controller for deposit into the Education Revenue Augmentation Fund on or
21 before May 10, 2009; and
22 WHEREAS, the one-time payment is estimated to be $300,000, however if the
23 required contribution to Education Revenue Augmentation Fund is actually higher than
the estimated $300,000, the Housing and Redevelopment Commission will be notified;
25 WHEREAS, amendments to the Carlsbad Redevelopment Agency's budget are
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required as a result of these actions; and
27"
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Exhibit 2
1
2 WHEREAS, the General Fund provides services to the Housing and
Redevelopment Funds and the General Fund should be fully compensated for those
4 services;
5
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
6
Commission of the City of Carlsbad, California, as follows:
7
0 1. That the above recitations are true and correct.o
9 2. That the Finance Director is authorized to appropriate and expense up to
10 the following amounts from the Carlsbad Redevelopment Agency's Funds for the
purpose of making a special payment to the County of San Diego Auditor and Controller
17 for deposit into the Education Revenue Augmentation Fund on or before May 10, 2009:
Village Redevelopment Area $300,000
14
3. That the Finance Director is authorized to appropriate $16,300 in the
15
Village Redevelopment Operations Fund, $5,300 from the Village Low/Mod Fund,16
]7 $6,600 in the South Coast Redevelopment Operations Fund and $400 in the South
Coast Redevelopment Low/Mod Fund and to transfer those amounts to the General
19 Fund to fully compensate the General Fund for services provided.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Housing and Redevelopment Commission, Carlsbad City Council, and
Carlsbad Municipal Water District Board of Directors, held on the 18th day of
November, 2008, by the following vote to wit:
AYES: Commission Members Lewis, Hall, Packard and Nygaard.
NOES: None.
ABSENT: Commission Member Kulchin.
ATTEST:
LISA HILDABRAND, Secretary
(SEAL)
Exhibit 3
1 RESOLUTION NO. 1344
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE CARLSBAD MUNICIPAL WATER DISTRICT (CMWD)
3 AUTHORIZING THE ADDITIONAL APPROPRIATION OF
4 VARIOUS FUNDS FOR GENERAL FUND SERVICES
PROVIDED.
5
6 WHEREAS, the Board of Directors of Carlsbad Municipal Water District,
7 California adopted the their 2008-09 budget on June 24, 2008;
8 WHEREAS, the General Fund provides services to the Carlsbad Municipal Water
9 District funds and the General Fund should be fully compensated for those services;
10 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
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Carlsbad Municipal Water District, California, as follows:
12
1. That the above recitations are true and correct.
14 2. That the Finance Director is authorized to increase current appropriations
15 by a total of $213,800 in the Water Operations Fund and $62,900 in the Recycled Water
16 Operations Fund and transfer that funding to the General Fund to fully compensate the
*' General Fund for services provided.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Municipal Water District Board of Directors, Carlsbad City Council, Carlsbad
and Housing and Redevelopment Commission held on the 18th day of November, 2008,
by the following vote to wit:
AYES: Board Members Lewis, Hall, Packard and Nygaard.
NOES: None.
ABSENT: Board Member Kulchin.
, President
ATTEST:
EORRAIrfl M. WtaJ&b, Secretary
'(SEAL)
:5»-
Exhibit 4
MISCELLANEOUS INTERDEPARTMENTAL CHARGES
Fund
Tree Maintenance
Median Maintenance
Street Lighting
Affordable Housing Trust
CDBG Entitlement
Housing Section 8
Wastewater Operations
Solid Waste Management
Storm Water Protection Program
Workers Compensation
Risk Management
Vehicle Maintenance
Information Technology
Village RDA Operations
Village Low/Mod
SCCRA Operations
SCCRA Low/Mod
Water Operations
Recycled Water Operations
TOTALS
Current
Budget
$42,995
31,300
47,692
39,000
0
35,000
177,000
24,000
50,000
15,000
50,000
265,000
341,000
$1,117,987
$50,000
18,000
23,000
6,000
$97,000
$564,000
68,000
$632,000
Revised
Budget
$42,995
31,300
47,692
60,800
20,300
105,300
318,900
27,600
89,500
48,300
139,400
307,800
428,400
$1,668,287
$66,300
23,300
29,600
6,400
$125,600
$777,800
130,900
$908,700
Budget
Adjustment
$0
0
0
21,800
20,300
70,300
141,900
3,600
39,500
33,300
89,400
42,800
87,400
$550,300
$16,300
5,300
6,600
400
$28,600
$213,800
62,900
$276,700
$1,846,987 $2,702,587 $855,600
1City of CarlsbadCity of CarlsbadEconomic Overview and Financial StatusNovember 2008Item No. 12
2Economy (Cynthia Haas)General Fund Revenues Through Oct. 2008 (Kevin Branca)10 Year Financial Forecast (Jim Elliott)AAGGEENNDDAA
3Economic Economic ConditionsConditions
4
5Impacts of the Economy on BusinessFewer Factory Orders/Less DemandReduction in Work ForceCredit Markets Difficult to AccessFailures/Bankruptcies
6National Auto SalesSeptember Change 2007-08Toyota/Lexus (-32%)Mercedes (-8%)Honda/Acura (-24%)Ford (-33%)Chrysler (-33%)GM (-16%)Nissan/Infinity (-37%)Volkswagen (-11%)Volvo (-52%)Porsche (-45%)Hyundai/Kia (-26%)Mitsubishi (-39%)Subaru (-12%)Mazda (-36%)Auto industry total September 2007 to September 2008 = 27% decline in sales.As many as 600 dealerships nationwide could close.US Big Three - GM/Ford/Chrysler – Asking for Government bailout.
72008 Carlsbad Commercial & Industrial Permitted Square Footage0200,000400,000600,000800,0001,000,0001,200,0001,400,0001,600,000200020012002200320042005200620072008 to DateSquare Footage70% of new construction square footage occurred in 1sthalf of year.Estimate 45-50% reduction at year end 2008 from 2007 development levels.694,138 SF permittedData Based on Calendar YTD
8Unfavorable Local Real Estate TrendsVacancy rates high due to downsizing, lower profits, higher costs, and excess inventory. Increased Carlsbad Vacancy RatesOffice Vacancy = 25% in 2ndQtr 2008Industrial Vacancy = 12% in 2ndQtr 2008Flex R&D = 15% in 2ndQtr 2008Retail = 3% in 2ndQtr 2008 (Highly impacted by Consumer Spending) Rent Stagnation/Decline/Landlord Concessions
92008 Carlsbad New ResidentialDwelling Units Permitted05001,0001,5002,0002,5002000 2001 2002 2003 2004 2005 2006 2007 2008 ToDatePermitsPermits Issued Trend249 Permits Issued85% of Residential Permits issued in 1sthalf of 2008.Estimate a reduction in 2008 Residential Permit activity of 30-35% from 2007 levels.Data Based on Calendar YTD
10Carlsbad Market Area Foreclosure Activity 2007/2008 Trustee Sales/To Auction712357185-500501001502002503003rd Qtr 07 4th Qtr 07 1st Qtr 08 2nd Qtr 08 3rd Qtr 08CarlsbadOceansideSan MarcosVistaEncinitasOceanside40%San Marcos18%Vista21%Carlsbad17%Encinitas4%3rd Qtr. Distribution of 512 Homes to Auction206901108521Congress - $700B Bailout Discussions/Vote/ApprovalNov 12th- Indications that Mortgage Debt Plan may be abandoned by Treasury
11Carlsbad Market Area UnemploymentState of California – 7.5%San Diego County – 6.4%Carlsbad – 4.2% WARN Act – 329 Local layoffs Sept-OctoberOceanside – 6.1% Vista – 7.1%San Marcos – 6.4%Encinitas – 4.5%WARN – Worker Adjustment and Retraining Notification Act(plant closing, mass layoff)
12Impacts of the Economyon ConsumersOctober 2008 U.S Consumer Confidence at lowest level ever recorded.Effect of Job Loss/Inflation/Lower WagesInvestment Loss EffectEffect of Tight Credit from Lenders
13Local Trends to WatchConsumer Spending Auto sales Retail sales Transient occupancy taxProperty Tax Reassessment Foreclosures UnemploymentEmployment/Consumer Oriented Real Estate Retail, Industrial, Office R&D Flex Job Losses/Unemployment
14Economic Recovery ???Most economists today see too many factors colliding at once for a quick recovery.Business Failures/BankruptciesJob Losses/UnemploymentLoan Defaults/DelinquenciesLack of Credit Availability/Investor Risk AversionHigher Household Debt/Lower Asset ValueConsumer Confidence/Consumer DemandMany experts now believe that recovery may not begin until 2010 to 2011… at the earliest.
15Carlsbad Local Economic Development ModelCarlsbad Quality of LifeBusinessesResidentsTouristsVisitorsPopulationDemographicsEmploymentConsumer DemandConsumer SpendingMunicipal ServicesInfrastructure TrafficHousing StockLand Supply and DevelopmentSchoolsEnvironmentPublic SafetyGov’t /Public Policies•Zoning/Land Use•Housing•Business Development•Tourism•Infrastructure•Municipal Services•Public Facilities•Public Programs•Environmental•Fee StructureATTRACTSIMPACTCREATE ANEED FORMAINTAINPRESERVE ENHANCE
16General Fund General Fund Revenues Through Revenues Through October 2008October 2008
17The US EconomyGDP growth: 2.8% Q2 an increase from the Q1 of 0.9% CPI-U: 4.9% increase over September 2007Fed Funds: 1.0%10 year Treasury Note: 3.65%Unemployment Rate: 6.5%Price per barrel of oil is now approximately $60 down from the high of $150 over the summer
18The US EconomyGDP growth: 2.8% Q2 an increase from the Q1 of 0.9% CPI-U: 4.9% increase over September 2007Fed Funds: 1.0%10 year Treasury Note: 3.65%Unemployment Rate: 6.5%Price per barrel of oil is now approximately $59 down from the high of $150 over the summer
19The US EconomyGDP growth: 2.8% Q2 an increase from the Q1 of 0.9% CPI-U: 4.9% increase over September 2007Fed Funds: 1.0%10 year Treasury Note: 3.65%Unemployment Rate: 6.5%Price per barrel of oil is now approximately $57 down from the high of $150 over the summer
20The US EconomyGDP growth: 2.8% Q2 an increase from the Q1 of 0.9% CPI-U: 4.9% increase over September 2007Fed Funds: 1.0%10 year Treasury Note: 3.65%Unemployment Rate: 6.5%Price per barrel of oil is now approximately $56 down from the high of $150 over the summer
21California’s EconomyState budget outlook forFY 2008-09 continues to deteriorateBalanced the budget on one-time revenues and now projecting an $11.2 billion shortfallGovernor is proposing State sales tax to increase from 5% to 6.5% and program reductions
Source: FY 2008-09 Budget22Four Largest Revenue Sources82% of General FundProperty taxes (41.7%)Sales taxes (23.6%)Transient occupancy taxes (12.3%)Franchise taxes (4.1%)
23Property Tax Growth TrendsAssessed Values TrendsPercentage Change in Year-to-Year Values-20.00%-10.00%0.00%10.00%20.00%30.00%40.00%50.00%60.00%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Fiscal YearPercentage ChangeResidentialCommercialIndustrialOverall
24Sales TaxesHISTORIC SALES TAX BY GEOGRAPHIC AREABenchmark Year$0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,00099/400/100/200/300/401/101/201/301/402/102/202/302/403/103/203/303/404/104/204/304/405/105/205/305/406/106/206/306/407/107/207/307/408/108/2Carlsbad Redevelopment AreaAuto MallPlaza Camino RealCarlsbad Premium OutletsThe Forum
25Transient Occupancy TaxesThrough October 2008, TOT is up 5% compared to last yearTOT was originally estimated to grow by 4% over FY 2007-08 figuresIncrease to date is predominantly due to an increase in hotel rooms: Sheraton Carlsbad Resort, Hampton Inn and Homewood SuitesOutlook for the remainder of the fiscal year does not look promising
26Development-Related RevenuesIncludes:Building permitsPlanning feesBuilding plan check feesEngineering plan check fees
27Development-Related Revenues01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,000Annual Revenues19941996199820002002200420062008Fiscal YearDevelopment-Related RevenuesBuilding PermitsPlanning FeesBuilding Plan Check FeesEngineering Plan Check Fees
28Other FactorsRefunds of previously paid development processing feesDrop in the yield on the Treasurer’s portfolioLack of home resales on real property transfer taxesUnknown State budget issue impacts on the City
2910 Year Financial 10 Year Financial ForecastForecast
30Operating ForecastGeneral Fund10 Year Financial Forecast$0$2$4$6$8$10FY2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018Fiscal YearMillions $FY 06FY 07FY 08FY 09
3110 Year Financial ForecastRevenue AssumptionsRevenue is projected to be down approximately $4.8 million compared to FY 2008-09 BudgetSales tax, development and transient occupancy tax driving the revenue lossRevenue growth expected to be -3.5% in FY 2009, 0% in FY 2010 and 2.4% in FY 2011
3210 Year Financial ForecastExpenditure AssumptionsReduce expenditures by $4.5 million in FY 2009 and maintain that budget level for two additional years – absorb cost of living and inflation increasesReserve is not used for operating costsInfrastructure Replacement Fund Transfer remains at 6.5% Moved several capital projects out
33Capital Project Schedule ChangesProjectOriginalRevisedPublic Works CenterFY 2012FY 2014Alga Norte ParkFY 2012FY 2013Alga Norte Park(Aquatics Center)FY 2012FY 2014Carrillo Ranch Phase 3FY 2012FY 2014
34Expenditure Savings PlanWorking with Departments to identify expenditure savings with minimal impact to service levelsExpect approximately $3.5 million in savings and $1.0 million from Council contingencyReturn to City Council in January to discuss proposed reductions
35City of CarlsbadWhat Are We Doing?Strong Fiscal Management Continue to monitor and make adjustments to spending as needed. Continue to report financial status to City Council periodically.Efficient Utilization of Resources Utilize cost/benefit analysis. Re-evaluate funding/resource priorities. Develop partnerships with other groups/agencies to leverage resources. Evaluate new opportunities for revenue generation and enhancement.Develop Long and Short-term Strategies for Job Growth and Economic Prosperity – Economic Development Strategic Plan Business needs assessment Analysis of the business environment/market Develop strategies/goals/programs Recommend policy enhancements/modifications
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37City of CarlsbadCity of CarlsbadEconomic Overview and Financial StatusNovember 2008