HomeMy WebLinkAbout2009-01-27; City Council; 19703; FY 2008-09 Budget ReductionsCITY OF CARLSBAD /
CARLSBAD MUNICIPAL WATER DISTRICT /
HOUSING &
REDEVELOPMENT COMMISSION
AGENDA BILL
AB# 19,703
MTG. 01/27/09
DEPT. FIN
PRESENTATION OF ECONOMIC
OVERVIEW AND APPROVAL FOR
FY 2008-09 BUDGET REDUCTIONS
DEPT. HEAD
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Accept presentation by the City of Carlsbad Finance and Economic Development Team
regarding the impact of the slowing economy on the City of Carlsbad's projected revenues
for Fiscal Year 2008-09.
Adopt Resolution No. 2009-019 Adopting Operating Budget Reductions for Fiscal
Year 2008-09 for the City of Carlsbad.
1347 Adopting Operating Budget Reductions for FiscalAdopt Resolution No.
Year 2008-09 for the Carlsbad Municipal Water District.
Adopt Resolution No. 463 Adopting Operating Budget Reductions for Fiscal Year
2008-09 for Housing & Redevelopment.
ITEM EXPLANATION:
The United States is experiencing a recession. It is important for the City of Carlsbad to
be aware of the recession and the potential impacts 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 we move through this economic uncertainty.
The City of Carlsbad's General Fund revenues for FY2008-09 were originally projected at
$120.7 million. Due to the economic recession, we are currently projecting revenues at
year end to be approximately $116.1 million, a decrease of $4.6 million from original
estimates. Major revenues impacted by the recession include sales tax, transient
occupancy tax, interest earnings, and development related revenue.
DEPARTMENT CONTACT: Lisa Irvine and Judi Vincent 760-602-2430
lirvin(g)ci.carlsbad.ca.us or jvinc@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WITHDRAWN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 UNKNOWN D
RETURNED TO STAFF D
OTHER-SEE MINUTES D
Page 2
As a result of the decrease in projected revenues, the City's Finance Department was
asked to work with City departments to reduce operating budgets. Proposed budget
reductions in the General Fund Operating Budget of $5.3 million (approximately 4.5%) are
being proposed, based on individual plans submitted by all City departments. The City's
current FY2008-09 appropriated General Fund Operating Budget is $118.3 million.
Implementing the $5.3 million in proposed reductions would decrease the General Fund
Operating Budget to $113.0 million.
Consistent with the City's conservative fiscal approach, the City does not budget to fully
expend all the revenue projected to be generated in the fiscal year. The difference
between revised revenues and revised expenses in the General Fund amounts to a $3.1
million surplus (approximately 2.7%). If the economy drops further than anticipated, this
projected surplus will allow the City to continue to maintain a balanced budget.
The City maintains a fund balance of approximately $46.1 million for emergencies and
one-time expenditures. It is not being recommended that these funds be used for ongoing
operations at this time.
The budget decreases identified encompass a broad range of reductions in all City
departments and should allow the City to address the downturn in current year revenues
without significantly affecting City services or otherwise impacting the public. It is
expected that the proposed budget reductions will have some impact to City non-public
safety response times, both internally and externally. Response times are still expected to
be at acceptable levels. There are some proposed reductions to travel and training
accounts as well. A revised out-of-state travel list is attached as Exhibit 5.
Smaller reductions are being proposed for the City's public safety departments. Some of
the overtime reductions proposed for public safety may result in a delay in response times
for non-emergency situations.
Results of the budget cuts may also mean a reduction in the City's ability to maintain and
repair parks, parkways, fields, facilities, streets, and streetlights with the same timeliness
and in the same condition as in the past. Staff will continue to make health and safety
situations a priority and those should not be affected by the proposed cuts.
No layoffs of full-time positions are being recommended at this time; however, a selective
hiring freeze has been implemented. Proposed budget reductions do include unfunding
3.5 full-time positions, mainly due to leaving vacant positions unfilled in the Building and
Planning departments, based on reduced demand in development related activities.
Other significant savings proposed include a $300,000 reduction in the Library
Contingency account and a $1.0 million reduction in the City Council's Contingency
account. In addition, a $250,000 reduction in the annual amount designated for the City's
Infrastructure Replacement Fund is also proposed. This reduction will allow the current
year transfer to the fund to remain at the City's goal of 6.5% of revised projected
revenues. In addition, due to the tough economic climate and uncertainty, the
management incentive pay is proposed to be reduced from 5% of management salaries to
2%, saving approximately $424,163 city-wide. A determination of actual management
incentive pay, if any, will occur after the close of the fiscal year, dependent upon the
economic climate.
Page 3
Additional Operating Budget reductions of $884,113 in the Non-General Fund
departments are also proposed based on individual plans submitted by those
departments.
The City is continuing to look for opportunities to save, as it is uncertain how long the
economic downturn will continue. We will continue to closely monitor the City's revenues
and expenditures to ensure we continue to maintain a balanced budget.
At this time, Council is also being asked to approve a transfer of $170,000 from the
General Fund to the Cultural Arts Special Revenue Fund. This is a transfer of previously
donated funds which were being held in the General Fund. It is proposed that these
donations now be accounted for and expended from this Special Revenue Fund.
FISCAL IMPACT:
A reduction of $4.6 million, from $118.3 to $116.1 million, in the City's projected General
Fund revenues for FY 2008-09 and a reduction of $5.3 million, from $118.3 million to
$113.0 million, in the City's General Fund appropriated operating budget for FY 2008-09.
A reduction of $884,113 in the City's Non-General Funds appropriated operating budgets
for FY 2008-09. Included in the $884,113 is a reduction of $170,620 for the Carlsbad
Municipal Water District and $64,923 for Housing and Redevelopment of the City of
Carlsbad.
A transfer of $170,000 of previously donated funds from the General Fund to the Cultural
Arts Special Revenue Fund
ENVIRONMENTAL IMPACT:
The proposed presentation and recommended actions do not constitute a "project" within
the meaning of the California Environmental Quality Act and, therefore, do not require
environmental review.
EXHIBITS:
1. Proposed Operating Budget Reductions for FY 2008-09.
2. Resolution No. 2009-019 of the City Council of the City of Carlsbad, California,
adopting Operating Budget Reductions for Fiscal Year 2008-09 for the City of
Carlsbad.
3. Resolution No. 1347 of the Carlsbad Municipal Water District of the City of
Carlsbad, California adopting Operating Budget Reductions for Fiscal Year 2008-09.
4. Resolution No. 463 of the Housing & Redevelopment Commission of the
City of Carlsbad, California, adopting Operating Budget Reductions for Fiscal Year
2008-09.
5. Revised Out-of-State Travel Fiscal Year 2008-09.
3
EXPENDITURE SAVINGS PLAN
2008-09
Exhibit 1
DEPARTMENT TITLE/NUMBER
REDUCTION
PROPOSAL
2008-09
GENERAL FUND
POLICY AND LEADERSHIP GROUP:
CITYMANAGER-1010,1012,1013
CITYCLERK-0210
CITY ATTORNEY-1210
TOTAL POLICY AND LEADERSHIP GROUP
ADMINISTRATIVE SERVICES;
ADMINISTRATION & ENV. RESOURCES TEAM-1110,1111,1112
FINANCE-1310
HUMAN RES-1510,1520,1530,1540,1550
RECORDS-1610
TOTAL ADMINISTRATIVE SERVICES
106,122
5,000
3,000
114,122
60,092
141,938
101,000
38,150
341,180
PUBLIC SAFETY:
TOTAL POLICE PROTECTION-21XX
TOTAL FIRE PROTECTION-22XX
TOTAL PUBLIC SAFETY
180,480
198,250
378,730
COMMUNITY DEVELOPMENT:
OMMUNITY DEV ADMIN-3010,3310,3510
LAND USE PLANNING-3210
BUILDING INSPECTION-3610
TOTAL COMMUNITY DEVELOPMENT
85,000
176,932
72,846
334,778
COMMUNITY SERVICES:
TOTAL LIBRARY/ARTS
TOTAL RECREATION/SENIORS
TOTAL COMMUNITY SERVICES
820,952
306,048
1,127,000
PUBLIC WORKS:
PUBLIC WORKS ADMINISTRATION-6010
ENGINEERING-5710,5711,5712
PARKS MAINTENANCE-5020,5023
FACILITIES MAINTENANCE-5060
TOTAL PUBLIC WORKS
49,600
663,395
203,600
130,320
1,046,915
NON-DEPARTMENTAL:
UNFUNDED LITIGATION-0019001
COUNCIL CONTINGENCY-0019008
TOTAL MISCELLANEOUS 001-9003
TOTAL NON-DEPARTMENTAL
50,000
1,000,000
250,000
1,300,000
OTHER REDUCTIONS
MANAGEMENT SALARY SAVINGS
MANAGEMENT PERS SAVINGS
MANAGEMENT INCENTIVE PAY / SALARIES
TOTAL OTHER REDUCTIONS
196,163
54,588
381,000
631,751
TOTAL OPERATING BUDGET REDUCTIONS - GENERAL FUND $5,274,476
Page 1 of 2
EXPENDITURE SAVINGS PLAN
2008-09
Exhibit 1
DEPARTMENT TITLE/NUMBER
REDUCTION
PROPOSAL
2008-09
NON-GENERAL FUNDS
CITY OF CARLSBAD
ADMINISTRATIVE SERVICES:
RISK MANAGEMENT-6121930
INFORMATION TECHNOLOGY-6401710
PUBLIC WORKS:
STREET TREE MAINTENANCE-1 605023
MEDIAN MAINTENANCE-1 61 5024
STREET LIGHTING-1 626357
WASTEWATER-51 1XXXX
SOLID WASTE-5206375
STORM WATER-521XXXX
VEHICLE MAINTENANCE-6205060
COMMUNITY DEVELOPMENT:
AFFORDABLE HOUSING TRUST
FED GRANT SEC8
FED GRANT CDBG
OTHER REDUCTIONS
MANAGEMENT SALARY SAVINGS
MANAGEMENT PERS SAVINGS
TOTAL OPERATING BUDGET REDUCTIONS - CITY OF CARLSBAD
36,408
49,400
I
26,864
46,231
48,614
122,060
27,800
145,321
83,720
3,854
2,969
1,455
42,149
11,725
| 648,570
CMWD
PUBLIC WORKS
WATER & RECYCLED WATER-501XXX, 502XXX | 170,620
REDEVELOPMENT
COMMUNITY DEVELOPMENT/HOUSING AND REDEVELOPMENT
VILLAGE RDA-801XXXX
TOTAL OPERATING BUDGET REDUCTIONS - NON-GENERAL FUNDS
| 64,923
$884,113
Page 2 of 2
Exhibit 2
1 RESOLUTION NO. 2009-019
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, ADOPTING OPERATING
3 BUDGET REDUCTIONS FOR THE FISCAL YEAR 2008-09
4 FOR THE CITY OF CARLSBAD.
5
5 WHEREAS, the City Council of the City of Carlsbad, California has received a
7 presentation regarding the impact of the slowing economy on the City of Carlsbad's
projected revenues for Fiscal Year 2008-09; and
9 WHEREAS, the City Council of the City of Carlsbad desires to be proactive
10 through this economic uncertainty; and
WHEREAS, the City Council of the City of Carlsbad, California has reviewed
12 proposed Operating Budget Reductions for Fiscal Year 2008-09.
13
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
14
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City's Operating Budget is here by reduced by the following
18 amounts: A) $5,274,476 designated as Fiscal Year 2008-09 General Fund
19 Operating Budget Reductions, and B) $648,570 designated as Non-
20 General Fund Operating Budget Reductions (Exhibit 1)
21 "
22 3. That the Finance Director is hereby directed to reflect these adjustments
23 in the Fiscal Year 2008-09 budget appropriation for the department or fund
24 for which they are designated.
25 "
26 4. That total adjusted appropriations for each fund may only be increased or
27 decreased by the City Council by the adoption of a resolution amending
28 "
Exhibit 2
1 the budget; except as previously provided.
2
3 5. That the Finance Director is authorized to transfer $170,000 of previously
4 donated funds from the General Fund to the Cultural Arts Donations
5 Special Revenue Fund.
6
7
8 '"
9 ///
10 ///
11 ///
12 ///
13 ///
14
15
16
17
,8 '"
19
20 ///
21 ///
22 ///
23 ///
24 ///
25
26
27
28
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
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad City Council, Carlsbad Municipal Water District Board of Directors and
Carlsbad Housing and Redevelopment Commission held on the 27th day of January,
2009, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
LW/s
CLAUDE A LEWIS, Mayor
ATTEST:
CORRAINE M. WOOD, City Clerk'
(SEAL)
Exhibit 3
RESOLUTION NO. 1347
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE CARLSBAD MUNICIPAL WATER DISTRICT (CMWD),
3 ADOPTING OPERATING BUDGET REDUCTIONS FOR
4 FISCAL YEAR 2008-09
5
WHEREAS, the Carlsbad Municipal Water District Board (CMWD), City of
6
Carlsbad, California has received a presentation regarding the impact of the slowing
7
economy on the City of Carlsbad's projected revenues for Fiscal Year 2008-09; and8
WHEREAS, the Board of Directors of the Carlsbad Municipal Water District
10 desires to be proactive through this economic uncertainty; and
11 WHEREAS, the Board of Directors of the Carlsbad Municipal Water District has
12 reviewed the proposed Operating Budget Reductions for Fiscal Year 2008-09.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water
14
13
District Board of the City of Carlsbad, California, as follows:
15
1. That the above recitations are true and correct.
16
2. That the Carlsbad Municipal Water District's budget is hereby reduced by
18 the amount of $170,620 designated as Non-General Fund Operating Budget Reduction
19 (Exhibit 1).
20 3. That the Finance Director is hereby directed to reflect these adjustments
21 in the Fiscal Year 2008-09 budget appropriation for the department or fund for which
22 they are designated.
23
4. That total adjusted appropriations for each fund may only be increased or
24
decreased by the City Council by the adoption of a resolution amending the budget;
25
except as previously provided.26
27
28
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
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Municipal Water District Board of Directors, Carlsbad City Council and
Carlsbad Housing and Redevelopment Commission, held on the 27th day of January,
2009, by the following vote to wit:
AYES: Board Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
CLAUDE A LEWIS, President
ATTEST:
LORRAINE M. WOOD, Secretary
(SEAL)
SIw
Exhibit 4
1 RESOLUTION NO. 463
2 A RESOLUTION OF THE HOUSING AND
REDEVELOPMENT COMMISSION OF THE CITY OF
3 CARLSBAD, CALIFORNIA, ADOPTING OPERATING
4 BUDGET REDUCTIONS FOR THE FISCAL YEAR 2008-09
5
WHEREAS, the Housing and Redevelopment Commission of the City of
6
Carlsbad, California has received a presentation regarding the impact of the slowing
7
economy on the City of Carlsbad's projected revenues for Fiscal Year 2008-09; and8
WHEREAS, the Housing and Redevelopment Commission of the City of
10 Carlsbad, California desires to be proactive through this economic uncertainty; and '
11 WHEREAS, the Housing and Redevelopment Commission of the City of
12 Carlsbad, California has reviewed proposed Operating Budget Reductions for Fiscal
13 Year 2008-09.
14 NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
15
Commission of the City of Carlsbad, California, as follows:
16
1. That the above recitations are true and correct.
17
18 2. That the Carlsbad Housing and Redevelopment Commission's budget is
9 hereby reduced by the amount of $64,923 designated as Non-General Fund Operating
20 Budget Reductions (Exhibit 1).
21 3. That the Finance Director is hereby directed to reflect these adjustments
22 in the Fiscal Year 2008-09 budget appropriation for the department or fund for which
23 they are designated.
24
4. That total adjusted appropriations for each fund may only be increased or
decreased by the City Council by the adoption of a resolution amending the budget;26
except as previously provided.
28
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
23
24
25
26
27
28
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 27th day of January,
2009, by the following vote to wit:
AYES: Council/Commission Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
CLAUDE A LEWIS, Chaffman
ATTEST:
LfSA-'HILDABRAND, Secretary
(SEAL)
w ESTABLISHED ''
197°
CITY OF CARLSBAD
OUT-OF-STATE TRAVEL BUDGET 2008-09
Org Key Department Travel Description
Number
of People Destination
IGENERALFUND • , . • "
0010110
0010210
0010310
0011010
0011012
0011013
0011110
0011112
0011210
0011310
0011510
0011610
0012120
0012126
0012130
0012131
CITY COUNCIL
CITY CLERK
CITY TREASURER
CITY MANAGER
COMMUNICATIONS
COMMUNICATIONS / VOLUNTEER
ADMINISTRATIVE SERVICES
ADMINISTRATIVE SERVICES
CITY ATTORNEY
FINANCE
HUMAN RESOURCES
RECORDS MANAGEMENT
POLICE FIELD OPERATIONS
EVIDENCE
POLICE INVESTIGATIONS
POLICE VICE/NARCOTICS
TLG Annual Conference 2009
Legislative Meetings 2009
ASBPA
IIMC - National Conference
Transforming Local Government
Association of Public Treasurers
Gov. Investment Officers Association
TLG Annual Conference 2009
ICMA Annual Conference 2009
Legislative Meetings
ICMA / IG Regional Meetings
NATOA
3CMA Conference
IPA2 (Public Participation Conference)
Points of Light Conference
Alliance for Innovation - Transforming Local Govt Conf.
Alliance for Innovation - Transform. Local Govt Conf.
IMLA Annual Conference
IMLA Mid-Year Conference
GFOA Conference
Harris Users Conference
IPMA Annual Training Conference
SHRM (Society of Human Resource Mgmt)
DMEC (Disability Management Employer Coaliton)
ARMA (Associaltion of Record Managers)
AIIM (Association of Information Management)
MER (Managing Etectonic Records)
NNA (National Notary Association)
FBI National Academy
International Assoc. of Identification Prof Annual Conf.
Suspect and/or witness interviews
Suspect and/or witness interviews
4
3
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
1
2
1
1
1
1
1
Unknown
Unknown
Mid West / TBD
Washington, DC
Chicago, IL
Chicago, IL
TBD
TBD
Las Vegas, NV
Mid West / TBD
Richmond, VA
Wash. DC.
TBD
Atlanta, GA
TBD
Arizona
TBD
Midwest or West US
Midwest or West US
Nevada
Washington, DC
Seattle, WA
TBD
Las Vegas, NV
TBD
Colorado
Las Vegas, NV
Boston, MA
Chicago, IL
TBD
Quantico, VA
Louisville, KY
TBD
TBD
2008-09
Budget
I
$ 5,450
7,550
2,150
15,150
3,000
3,000
2,045
2,720
1,450
6,215
1,650
1,907
2.225
2,225
8,007
2,700
2,900
2,900
8,500
3,000
3,000
2,000
2,000
2.000
2,000
2,300
3000
5,300
1,650
1,150
2,800
3,000
4,000
2,000
9,000
6.000
3,000
3,500
1.500
14,000
2,600
2,600
1,400
1,400
1,000
1,000
400
400
J-2 /3
CITY OF CARLSBAD
OUT-OF-STATE TRAVEL BUDGET 2008-09
Org Key Department Travel Description
Number
of People Destination
2008-09
Budget
GENERAL FUND " - - . •
0012140
0012220
0012225
0012240
0013010
0013210
0013310
0013510
0013610
0014040
0014050
0014060
0014070
0014510
0015710
POLICE SUPPORT OPERATIONS
FIRE DEPARTMENT - EMERGENCY OPS
FIRE PREVENTION
FIRE - EMERGENCY PREPAREDNESS
COMMUNITY DEVELOPMENT
PLANNING
GEOGRAPHIC INFO. SYSTEMS
ECONOMIC DEVELOPMENT
BUILDING
LIBRARY/TECHNICAL SERVICES
MEDIA SERVICES
PROGRAMS, EXHIBITS & GRAPHICS
DOVE LIBRARY ADMIN
PARK PLANNING & RECREATION MGMT
ENGINEERING
Tiburon CAD Users Conference
Inter- and intra-state travel for background investigations
Mass Disaster & Terrorism, Critical Indicent Stress Certification
Continuation
Weapons of Mass Destruction - MGT 360 Incident Command
Training
National Fire Academy Training Courses
Homeland Security Emerg. Prep. Annual Conference
Department Homeland Security Approved Training
Congress for the New Urbanism
ULI Conference
APA Conference
Accela (PemnitPlus) Conference
Urban & Regional Inform. System Association Annual Confer.
ULI Conference
ICC Code Development Hearing
Acceia User Conference
SirsiDynix Users Conference
Library Programming Awards - NATOA Conf.
EMS Users' Conference
Public Relations Society of America
Sirsi Superconference
Public Library Association Spring Symposium
ALA Conference
National Parks & Rec Assoc. Conference
American Society of Landscape Architects
National Water Reuse Symposium
Underground Construction Technology Conference
APWA 2008 Congress
Permits Plus Annual Conference
ASBPA Annual Conf., Beach Preservation
Hansen Conference
AutoCad Training
1
1
1
2
4
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
2
2
1
1
1
1
1
1
1
Denver, CO
Various
Wester US
Anniston, AL
Emmitsburg, MD
TBD
TBD
Denver, CO
Miami, FL
TBD
Las Vegas, NV
New Orleans, LA
Miami, FL
Minneapolis, MN
Las Vegas, NV
Dallas, TX
Atlanta, GA
Denver, CO
Detroit, Ml
Dallas, TX
Nashville, TN
Chicago, IL
Baltimore, MD
Philadelphia, PA
Dallas, TX
Orlando, FL
New Orleans, LA
Las Vegas, NV
Washington, DC
Las Vegas, NV
Las Vegas, NV
2,100
1,000
3,100
2,800
300
3,100
2,700
2,700
2,500
3,000
5,500
2,000
2,000
4,000
4,800
1,200
6,000
2,000
2,000
2,000
2,000
2,400
1,200
3,600
2,000
2,000
2,900
2,586
6,485
1.825
1,825
2,000
1,600
700
4,300
5,000
5,000
10,000
3,000
2,400
2,500
1,500
3,000
2,800
2,500
17,700
J-3
CITY OF CARLSBAD
OUT-OF-STATE TRAVEL BUDGET 2008-09
Exhibit 5
Org Key Department Travel Description
Number
of People Destination
2008-09
Budget
GENERAL FUND
0015713 ENGINEERING - BEACH PRESERVATION
0016010 PUBLIC WORKS ADMIN
TOTAL GENERAL FUND
ASBPA Annual Conf., Beach Preservation
APWA Conference
Infomm/Hansen Conference
AWWA Fall Conference
1 Washington, DC
1 New Orleans, LA
1 Las Vegas, NV
1 Reno, NV
3,000
3,000
2,500
2,800
900
6,200
$ 166,882
OTHER FUNDS '
1903401 SECTION 8 RENTAL ASSISTANCE
5016310 WATER OPERATIONS
5026310 RECYCLED WATER OPERATIONS
5116310 WASTEWATER OPERATIONS
5206375 SOLID WASTE
5215710 STORM WATER
5216310 STORM DRAIN MAINTENANCE
6401710 INFORMATION TECHNOLOGY
TOTAL OTHER FUNDS
Visual Homes Software User Group Conference
WEF Tech
2008 APWA Congress
Itron Users Conference
Itron MVRS Training
Harris Utility Billing Conference
AWWA Fall Conference
Tri-State Water/Sewer Seminar
Inforum/Hansen Conference
AWWA Fall Conference
Tri-State Water/Sewer Seminar
ABPA Western Regional Backfow Conf.
WEF Tech
Tri-State Water/Sewer Seminar
NRC Recycling Meeting
APWA 2008 Congress
StormCon Stormwater Conference
Tri-State Water/Sewer Seminar
SQL Server 2005 Analysis Services
Tivoli STORserver Training
Hansen Annual User Conference
Gartner Group Summit - Web Portal
Cisco Live Training
2 Washington, DC
1 Chicago, IL
1 New Orleans, LA
2 Dallas, TX
1 Dallas, TX
2 Midwestern US
2 Reno, NV
2 Primm, NV
1 Las Vegas, NV
1 Reno, NV
2 Primm, NV
4 Las Vegas, NV
1 Chicago, IL
2 Primm, NV
1 Pittsburgh, PA
1 New Orleans, LA
1 Orlando, FL
1 Primm, NV
1 Western U.S.
1 Co. Springs, CO
1 Las Vegas, NV
1 Las Vegas, NV
2 Western U.S.
$ 5,000
5,000
2,000
3,000
7,200
3,800
5,000
2,900
700
2,800
27,400
1,350
700
2,800
4,850
2,000
700
2,700
3.500
2,500
6,000
2.500
2,500
350
350
2,250
2,000
2,600
1,450
2,250
10,550
$ 59,350
GRAND TOTAL OUT OF STATE TRAVEL $ 226,232
J-4
11
City of Carlsbad
Economic Overview, Financial Status
and Expenditure Savings
January 2009
22
Economy (Cynthia Haas)
General Fund Revenues
Through Dec. 2008 (Lisa
Irvine)
Expenditure Savings (Lisa
Irvine)
A
G
E
N
D
A
33
Economic
Conditions
4
Hold On Tight…
5
Carlsbad Market Area Foreclosure
Activity 2007/2008 Trustee
Sales/To Auction
7 12 35
71 85 103
-50
0
50
100
150
200
250
300
350
400
3rd Qtr 07 4th Qtr 07 1st Qtr 08 2nd Qtr 08 3rd Qtr 08 4th Qtr 08
Carlsbad Oceanside San Marcos Vista Encinitas Oceanside
40%
San
Marcos
18%
Vista
21%
Carlsbad
17%
Encinitas
4%
4th Qtr. Distribution of 843
Homes to Auction
353
168 191
103
28
Congress -$700B Bailout
Discussions/Vote/Approval
& CA SB1137 takes effect
6
San Diego County Housing
17,712 Foreclosures in 2008
Area with highest number of foreclosures was Oceanside
(92057)
Median Home Price in SD County 2008 was $360,000
Median Home Price for homes in Carlsbad was $620,000
Year over Year Change 2007-2008
Carlsbad Zip Code Median Price -All
92008 (-20.5%)$529,000
92009 (-25.9%)$630,000
92010 (-36.9)$413,500
92011 (-2.7%)$735,000
7
2008 Carlsbad New Residential
Dwelling Units Permitted
0
500
1,000
1,500
2,000
2,500
2000 2001 2002 2003 2004 2005 2006 2007 2008
Permits Permits Issued Trend
257
Permits Issued
11 Residential Permits Issued in 4th Quarter.
2008 Residential Activity dropped by 82% from 2005 levels and 29%
from 2007 levels.Data Based on Calendar Year
8
2008 Carlsbad Commercial &
Industrial Permitted Square
Footage
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Square Footage
Commercial Permit Activity Dropped 52% from 2007 Levels.
707,804 SF
permitted
Data Based on Calendar YTD
9
Unfavorable Local Real Estate Trends
Foreclosures will continue to rise in the North County
Inland/Coastal Areas with Encinitas and Carlsbad holding up better
than other cities
Construction starts in all sectors to remain low
Tight Credit
Lower Demand
Continue to have high Commercial/Industrial vacancies due to over
building in 2007, corporate downsizing & cost cutting, and retail
store closures
Carlsbad Vacancy Rates
Office Vacancy = 26% in 4th Qtr 2008
Retail = 4.1 in 4th Qtr 2008 (San Diego County)
Expect higher vacancies in retail sector due to new store closures
Expect vacancy rates to jump at least 1-2% in all sectors
Expect concessions in all sectors due to decreased demand
10
Carlsbad Market Area
Unemployment
Estimated Labor
Force
Total Est.
Unemployed
Unemployment
Rate 2008
San Diego
County
1,577,200 108,500 5.0% -Dec 2007
6.9% -Nov 2008
7.4% -Dec 2008
Carlsbad 48,300 2,200 4.5% -Nov
Encinitas 39,300 1,900 4.9% -Nov
Oceanside 86,600 5,700 6.5% -Nov
San Marcos 31,300 2,200 6.9% -Nov
Vista 49,200 3,800 7.7% -Nov
Escondido 73,500 5,300 7.2% -Nov
U.S. Unemployment Rate –7.2%
California Unemployment Rate –9.3%
Source: California EDD/LMI
Nov /Dec 2008
San Diego County
Job Losses
Industry 2008 (Losses)/Gains
Total All Industries 2007-2008 (18,500)
Construction (5,300)
Manufacturing (1,600)
Trade/Transportation/Utilities (8,800)
Business & Professional Services (1,900)
Financial/Information (4,300)
Leisure/Hospitality 300
Education/Gov’t/Health Services 4,100
11
Preliminary Estimates
12
Carlsbad Layoff
Announcements
Callaway Golf (-164)
Las Villas de Carlsbad (-123)
Activision (-51)
Gemological Institute (-110)
Taylor Made/Adidas (-70)
Reef (-42)
Titleist Golf (-50)
Job Losses Announced for Carlsbad Companies
August 2008 –December 2008 = 610
13
2009 -What to Expect
Continuation of Low Consumer Confidence
New Losses –Weak Job Market
Income Stagnation/Changes in Pay/Benefits
Home Foreclosures & Defaults
Unstable Stock Market/More Declines
Loss in Net Wealth (Housing, Retirement, Savings, Income)
More Personal/Business Bankruptcies
More Business Closures
Continued Slow Down in Construction
Continued Credit Tightening
Higher Savings/Less Spending (Personal/Corporate)
Government Stimulus Programs (2010?)
Potential Government infrastructure funding
Potential Investments in Clean/Green Technologies
Federal Grant Funding –Job Creation
1414
General Fund
Revenues Through
December 2008
15Source: Fiscal Year 2008-09 Budget 15
Four Largest Revenue Sources
82% of General Fund
Property taxes (41.7%)
Sales taxes (23.6%)
Transient occupancy taxes (12.3%)
Franchise taxes (4.1%)
16
General Fund Revenues
First Six Months of the Fiscal Year
ACTUAL
FY 2008
BUDGET
FY 2009
ACTUAL
FY 2009
CHANGE FROM
EXPECTED
Taxes $39,717,263 $41,310,780 $40,695,247 ($615,533)
Intergovernmental 655,048 470,925 859,945 389,020
Licenses/Permits 796,067 617,272 581,194 (36,078)
Charges for Services 3,684,090 3,091,308 3,277,269 185,961
Fines/Forfeitures 660,071 598,564 717,849 119,285
Income from Invest.1,982,765 1,875,173 1,822,006 (53,167)
Interdepartmental 1,112,655 1,523,386 1,787,634 264,248
Other 315,316 260,933 368,540 107,607
$48,923,275 $49,748,341 $50,109,684 $361,343
17
Property Taxes
Property taxes are up $1.4 million or 8% through December 31, 2008
Although assessed values have increased by 7.6% over the prior fiscal year, current property taxes are up by only 2.5%
Major factors in increase from prior fiscal year:
Aircraft taxes (up $884,000)
Delinquent taxes (up $427,000)
Current taxes (up $374,000)
Supplemental taxes (down $319,000)
18
Sales Taxes
Top 25 Contributors
Through the 3rd Quarter 2008
ARCO AM/PM Marts
Aviara Four Seasons
Bob Baker Chrysler Jeep
Bob Baker Volkswagen
Cal Worthington Dodge
Carlsbad Fuels Service Station
Coach Stores
Costco Wholesale
Hoehn Mercedes-Benz
Hoehn Used Cars
Invitrogen
JC Penney Company
Ken Grody Ford
Ken Grody GMC/Pontiac
La Costa Resort and Spa
Legoland California
Lexus
Macy’s Department Store
Pacific Sales Kitchen & Bath
Sears Roebuck & Company
Shell Service Stations
Toyota Carlsbad
Toyota Motor Credit
Vons Grocery Company
Weseloh Chevrolet
1919
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
99/400/100/200/300/401/101/201/301/402/102/202/302/403/103/203/303/404/104/204/304/405/105/205/305/406/106/206/306/407/107/207/307/408/108/208/3HISTORIC SALES TAX BY GEOGRAPHIC AREA
Benchmark Year
Carlsbad Redevelopment Area Auto Mall Plaza Camino Real Carlsbad Premium Outlets The Forum
YTD Revenues -$10.2 Million (down 5%)
Revised Projected FY 2008-09 Revenues -$26.3 Million (down 6%)
Sales Taxes
2020
Transient Occupancy Taxes
Through December 2008, TOT is up
2% compared to last year
TOT was originally estimated to grow
by 4% over FY 2007-08 figures
Increase to date is due to an increase in hotel
rooms: Sheraton Carlsbad Resort, Hampton Inn
and Homewood Suites
Outlook for the remainder of the fiscal year does
not look promising (projected decrease of 5.5%
for the fiscal year)
2121
Development-Related
Revenues
Includes:
Building permits
Planning fees
Building plan check fees
Engineering plan check fees
2222
Development-Related
Revenues
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Annual Revenues19941996199820002002200420062008Fiscal Year
Development-Related Revenues
Building Permits Planning Fees
Building Plan Check Fees Engineering Plan Check Fees
2009 Revised Budget
Projections
2323
Other Factors
Unknown State budget issue impacts on the
City
Drop in the yield on the Treasurer’s portfolio
Lack of home resales on real property
transfer taxes and supplemental taxes
2424
Expenditure
Savings Plan
2525
The US Economy
GDP growth: -0.5% Q3, a decrease from 2.8% Q2
and 0.9% from Q1
CPI-U: 0.7% decrease Dec. 2008 after declining
1.7% Nov. 2008
Fed Funds: 0 -0.25%
10 year Treasury Note: 3.75%
Unemployment Rate: 7.2%
Price per barrel of oil is now approximately $46
down from the high of $150 over the summer
2626
California’s Economy
State budget outlook for
FY 2008-09 continues to deteriorate
Balanced the budget on one-time
revenues and now projecting $41.8 billion
shortfall over 18 months
Governor is proposing State sales tax to
increase from 5% to 6.5% and program
reductions
2727
Expenditure Savings Plan
General Fund Revenue projected to be
down approximately $4.6 million by end of
fiscal year
Expect approximately $4.3 million in
General Fund savings and $1.0 million
from Council contingency
$884,000 savings from Non-General Fund
departments
2828
Expenditure Savings Plan
Departments have identified expenditure
savings with minimal impact to service
levels
Health and Public Safety remain high
priority
No Layoffs of Full-Time Employees are
being proposed
2929
Expenditure Savings Plan
Reduced maintenance in parks, parkways,
fields, facilities, streets and streetlights
Travel and Training have been reduced
Reduced potential management pay
Small reductions proposed for Police and
Fire
Managed Hiring Freeze Implemented
3030
Actions Requested
Approve Resolution No. 2009-018 of the City Council adopting the Operating Budget Reductions for FY 2008-09
Approve Resolution No. 1347 of the Carlsbad Municipal Water District adopting Operating Budget Reductions for FY 2008-09
Approve Resolution No. 463 of the Housing and Redevelopment Commission adopting Operating Budget Reductions for FY 2008-09
3131
3232
City of Carlsbad
Economic Overview, Financial Status
and Expenditure Savings
January 2009