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HomeMy WebLinkAbout2009-12-08; City Council; 20060; Annual Report Capital Funds and Special Taxes Government Code Sections 50075 66001 and 66006CITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 20,060 12/08/09 FIN ANNUAL FINANCIAL REPORT ON CAPITAL FUNDS AND SPECIAL TAXES PURSUANT TO GOVERNMENT CODE SECTIONS 50075, 66001, AND 66006 DEPT. HEAD ^ CITYATTY. ^- ^ CITY MGR. U/-^ RECOMMENDED ACTION: Adopt Resolution No2009-305making certain findings pursuant to California Government Code Sections 50075 and 66001. ITEM EXPLANATION: California Government Code requires the City to annually report the status of certain fees and special taxes. More specifically, the City must annually make findings regarding any local special tax measure and any fee established, increased, or imposed after January 1, 1989. Government Code Sections 50075.1 & 50075.3: California Government Code Sections 50075 - 50077.5, inclusive, were enacted to earn the voter's confidence and support of special taxes by demonstrating to the voters that local agencies spend these funds on the intended facilities and services. To accomplish this goal, California Government Code Section 50075.1 requires that any local special tax/local bond measure subject to voter approval: 1. contain a statement indicating the specific purposes of the special tax, 2. have a requirement that the proceeds of the special tax be applied to those purposes, 3. have a separate account into which the proceeds shall be deposited, and 4. have an annual report containing information regarding the use of proceeds. The first three requirements of Government Code Section 50075.1 are met through the formation of the Special Tax District. Requirement four is satisfied annually via Government Code Section 50075.3. Government Code Section 50075.3 requires "the chief fiscal officer of the local agency to file a report with its governing body no later than January 1, 2002, and at least once a year thereafter", which contains the following information: 1. the amount of funds collected and expended, and 2. the status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1. DEPARTMENT CONTACT: Aaron Beanan 760-602-2414 aaron.beanan@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED 4 D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES nn Dn Page 2 The City's Community Facilities District No. 1 and Community Facilities District No. 3 (Improvement Area 1 and Improvement Area 2) are included under this code section because they are local special tax measures subject to voter approval. The information to make the findings can be found in the 2009-10 Capital Improvement Program (CIP) on file with the City Clerk. When findings are required by this subdivision, they need to be made in connection with the public information required by Code Sections 50075 - 50077.5, inclusive. The attached resolution makes these findings in accordance with Code Section 50075.1. Since these findings have been made, and the City is in compliance with the Code, no action is required. Government Code Sections 66001 & 66006: California Government Code Section 66006 requires local agencies to annually report certain financial information related to capital funds established to track fees charged in connection with the approval of a development project. The information required by the Government Code includes: 1. a description of the fee, 2. the amount of the fee, 3. the beginning and ending balance of the fund, 4. the amount of the fees collected and the interest earned, 5. an identification and amount of each public improvement on which fees were expended, 6. the total percentage of the project funded by that fee, 7. the approximate date by which the construction of the public improvement will commence, 8. a description of each interfund transfer or loan, including the project to be funded with the loan, the approximate date of repayment, and rate of interest, and 9. any refunds made to developers pursuant to the Code. This information must be made available within 180 days of the end of the fiscal year and must be reviewed at the next regularly scheduled meeting not less than 15 days after the information is available. The attached report provides the information required by the Government Code for the development fees that fall under this disclosure requirement. In some instances, the ending fund balance amount is less than the remaining appropriation because outstanding advances and loans are not included in the fund balance. Cash balances are sufficient for the remaining appropriations. No refunds have been made nor are any required. More information on these funds, and all other capital funds, is available in the 2009-10 Capital Improvement Program that was adopted by Council in June 2009 and in the Comprehensive Annual Financial Report that will be available in December 2009. In addition to the required annual reporting under Code Section 66006, California Government Code Section 66001 requires local agencies to make the following findings every five years with respect to that portion of the fund remaining unexpended, whether committed or uncommitted, for the development fee funds: 1. identification of the purpose to which the fee is to be put. Page 3 2. demonstration of a reasonable relationship between the fee and the purpose for which it is charged. 3. identification of all sources and amounts of funding anticipated to complete financing on incomplete improvements. 4. the approximate dates on which the funding referred to above is expected to be deposited into the appropriate account or fund. The information to make the findings for the four (4) requirements can be found in the 2009- 10 Capital Improvement Program (CIP) on file with the City Clerk. When findings are required by this subdivision, they need to be made in connection with the public information required by Code Section 66006. The attached resolution makes these findings in accordance with Code Section 66001. Since these findings have been made, and the City is in compliance with the Code, no refunds are required. This report, including all the above code sections, was compiled with the audited City financial records. These audited figures are also available in the City's Comprehensive Annual Financial Report (CAFR). FISCAL IMPACT: There is no fiscal impact. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code section 21065 and CEQA Guideline section 15738, this does not constitute a "project" within the meaning of CEQA and therefore, does not require an environmental review. EXHIBITS: 1. Resolution No. 2009-305 making certain findings pursuant to California Government Code Sections 50075 and 66001. 2. Financial Information Report, Capital Funds and Special Taxes subject to Government Code Sections 50075 and 66006. 3. The 2009-10 Capital Improvement Program on file with the City Clerk. -z Exhibit 1 1 RESOLUTION NO. 2009-305 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO MAKE 4 CERTAIN FINDINGS PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 50075 AND 66001 6 7 WHEREAS, the City of Carlsbad is required to make certain findings every 8 five years with respect to the unexpended fund balance of certain development fee y funds pursuant to California Government Code Section 66001; and WHEREAS, the City of Carlsbad is required to make certain findings 12 annually with respect to special taxes collected and expended pursuant to 13 California Government Code Section 50075; and 14 WHEREAS, the information to make the required findings can be found in the 2009-10 Capital Improvement Program on file with the City Clerk; and 16 ' WHEREAS, these findings need to be made in conjunction with the public .0 , information required by Code Sections 50075 and 66006.lo 19 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 20 I Carlsbad, California, as follows: 21 „ 1. That the above recitations are true and correct. 22 ' 2. That the following findings are made as required under Government 24 Code Sections 50075 and 66006: 25 a. That the purpose to which the developer fee and special taxes are to 26 be put has been identified. 27 b. That a reasonable relationship has been demonstrated between the 28 Exhibit 1 1 developer fee and the purpose for which it is charged. 2 c. That all sources and amounts of funding anticipated to complete financing on incomplete improvements have been identified. 4 d. That the approximate dates on which the funding referred to above is 5 expected to be deposited into the appropriate fund have been designated. 6 3. That these findings are based on information provided in the City of 7 Carlsbad's 2009-10 Operating Budget and Capital Improvement Program, which is8 g incorporated herein by reference. 10 // 11 12 // 13 // 14 // 15 // 16 // 17 // 18 // 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 Regular Meeting of the City Council of the City of Carlsbad on the 8th day of December. 2009, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn. NOES: None. ABSENT: None. LORRAINE M. (SEAL) Exhibit 2 FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 50075 YEAR ENDED JUNE 30, 2009 COMMUNITY FACILITIES DISTRICT #3 IMPROVEMENT AREA 1(1) Date of Issuance 05/11/2006 Initial Amount Deposited To Improvement Fund $ 9,989,741 Balance at 06/30/2009 (2) $ 2,468,003 Expenditures To Date (2) $ 11,040,281 Project Status In Progress (1) Pursuant to Government code section 50075 the following items are required to be disclosed: (a) The amount of funds collected and expended. (b) The status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1 or Section 53410. (2) Federal grant money and interest earnings account for the difference between the balance at 6/30/09 plus expenditures to date and the initial amount deposited. Exhibit 2 FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 50075 YEAR ENDED JUNE 30, 2009 COMMUNITY FACILITIES DISTRICT #3 IMPROVEMENT AREA 2m Date of Issuance 02/21/2008 Initial Amount Deposited To Improvement Fund $ 11,844,689 Balance at 06/30/2009 (2) $ 469,539 Expenditures To Date (2) $ 11,427,890 Project Status In Progress (1) Pursuant to Government code section 50075 the following items are required to be disclosed: (a) The amount of funds collected and expended. (b) The status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1 or Section 53410. (2) Interest earnings account for the difference between the balance at 6/30/09 plus expenditures to date and the initial amount deposited. FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 BRIDGE AND THOROUGHFARE DISTRICT #2 BEGINNING BALANCE 2008-09 FEES INTEREST MISC. REVENUES CAPITAL EXPENDITURES ENDING BALANCE REMAINING APPR. + ENC. AT 6/30/09 2009-10 AND FUTURE APPROPRIATIONS CONSTRUCTION DATE PERCENTAGE PAID BY FEE POINSETTIA LANE - REACHES A,B,C,F,G & AVIARA PKWY REIMB. POINSETTIA LANE - REACH E 349,302 1,373,558 13,110,600 2020-2024 2013+ 100.00% 100.00% 7,742,801 |99,858 | 333,039 3,420 8,179,118 349,302 | Total: 14,484,158 14,833,460 Loan: None Fee: LFMP Zone Fee per ADT* 5 $ 20 21 'Average daily trip 291.00 1,513.00 1,222.00 mx3;5;!» ro FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 BRIDGE AND THOROUGHFARE DISTRICT #3 BEGINNING BALANCE 2008-09 FEES INTEREST OTHER REVENUE CAPITAL EXPENDITURES OTHER EXPENDITURES ENDING BALANCE Projects: CANNON ROAD - MITIGATION 233,153 16,416 2,794 --66,462 185,901 REMAINING APPR. + ENC. AT 6/30/09 2009-10 AND FUTURE APPROPRIATIONS CONSTRUCTION DATE PERCENTAGE PAID BY FEE 185,901 In Progress 100.00% 185,901 Total:185,901 Loan: None Fee: $171/Average daily trip mx 3| j? J* ro FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 50075 & 66006 YEAR ENDED JUNE 30, 2009 COMMUNITY FACILITIES DISTRICT #1 BEGINNING BALANCE 2008-09 TAXES 2008-09 FEES INTEREST CAPITAL EXPENDITURES OTHER EXPENDITURES ENDING BALANCE REMAINING APPR. + ENC. AT 6/30/09 2009-10 AND FUTURE APPROPRIATIONS CONSTRUCTION DATE PERCENTAGE PAID BY TAX/FEE Description PUBLIC WORKS CENTER CIVIC CENTER I-5 AND LA COSTA AVENUE AUXILIARY LANES LIBRARY EXPANSION (COLE) LIBRARY EXPANSION (LEARNING CENTER) VETERAN'S MEMORIAL PARK ADMINISTRATION COSTS CFD TAXES BTD FEES TRAFFIC IMPACT FEES PUBLIC FACILITIES FEES Loans: None 16,929 397,850 1,491,630 71,388 14,372,100 26,100,000 2,000,000 4,763,217 23,239,800 In Progress 2015-19 2020-24 2020-24 In Progress 2020-24 60.76% 100.00% 100.00% 32.76% 73.16% 100.00% 72,201 1,353,215 14,954 61,365 170,685 56,046,285 |1,353,215 |247,004 |2,553,482 |414,779 72,201 |59,713,006 |1,563,018 | Total: 70,475,117 72,038,135 BTD Fees: various Traffic Impact Fee: $2000/Unit - Residential $80/Trip - Commercial/Industrial Public Facilities Fee: 1.82% of Building Permit Value CFD#1 Tax Rates: various mx FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 PARK IN LIEU FEES BEGINNING BALANCE Projects: 2008-09 FEES OTI INTEREST REVE HER CAPITAL ENDING HNUE EXPENDITURES BALANCE NORTHEAST QUADRANT - ROBERTSON RANCH PARK DEVELOPMENT NORTHEAST QUADRANT - PARK SITE ACQUISITION (15 ACRES)3,857,643 NORTHWEST QUADRANT - PINE AVENUE PARK -COMMUNITY BLDG - PHASE II NORTHWEST QUADRANT - PINE AVENUE PARK -RESTROOMS/STORAGE BLDG SOUTHEAST QUADRANT - LEO CARRILLO PARK - PHASE III SOUTHEAST QUADRANT - LEO CARRILLO PARK - EVENT AREA EXPANSION SOUTHEAST QUADRANT - LEO CARRILLO PARK - BARN RESTORATION 191,292 40,000 SOUTHWEST QUADRANT - AVIARA REIMBURSEMENT AGREEMENT SOUTHWEST QUADRANT - AVIARA COMMUNITY PARK COMMUNITY BLDG 1,663,330 114,765 98,800 4,088,935 (2,212,040)| REMAINING APPR. + ENC. AT 6/30/09 2009-10 AND FUTURE APPROPRIATIONS ESTIMATED CONSTRUCTION DATE PERCENTAGE PAID BY FEE 75,707 219,100 294,807 | Total: 7,324,524 7,619,331 1,800,000 - 1,751,776 100,000 866,100 - - - 2,806,648 2020-24 Complete 2020-24 2010-11 2015-19 In Progress Complete In Progress 2020-24 100.00% 100.00% 18.11% 26.55% 45.04% 100.00% 6.98% 100.00% 26.12% Loans: - Received $4,550,000 loan from the Public Facilities Fee Fund for the acquisition of the Robertson Ranch Park Site. Repayment is scheduled for 2020-24. Interest is not charged. Loans not included in ending balance above. Fee: $3,696 to $5,728/Dwelling Unit (NE.SW.SE Quadrants) $4,934 to $7,649/Dwelling Unit (NW Quadrant) FUND 330 FUND 331 FUND 332 FUND 333 BFB (54,312) 127,627 555,143 1,034,872 1,663,330 Fees 66,725 - - 48,040 114,765 Interest Other Rev 913 29,757 24,907 43,223 98,800 Cap Exp - 3,857,643 - 231,292 4,088,935 EFB 13,326 (3,700,259) 580,050 894,843 (2,212,040) mx3; 5; I* Is) FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 ZONES 5. 13 AND 16 FEES BEGINNING BALANCE 2008-09 CONTRIB INTEREST CAPITAL EXPENDITURES ENDING BALANCE Projects: BUSINESS PARK RECREATIONAL FACILITY REMAINING APPR. + ENC. AT 6/30/09 2009-10 AND FUTURE APPROPRIATIONS CONSTRUCTION DATE PERCENTAGE PAID BY FEE 3,400,000 2020-24 100.00% 2,138,418 | 81,186 | 99,635 | 2,319,239 |- I Total: 3,400,000 3,400,000 Loans: None Fee: .40 per square foot/ Industrial & Commercial Zones 5, 13, 16 mx FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 PLANNED LOCAL DRAINAGE FEE FUND BEGINNING BALANCE Projects: 2008-09 CAPITAL ENDING FEES INTEREST EXPENDITURES BALANCE ALL PLD AREAS - MISCELLANEOUS MASTER DRAINAGE FACILITIES MASTER PLAN UPDATE 22,562 PLD AREA B - COLLEGE BLVD/CANNON RD REACH 3 DRAINAGE FACILITIES 969,033 PLD AREA B - AGUA HEDIONDA CHANNEL 52,958 PLD AREA B - BCC DRAINAGE FACILITY (REIMB.) PLD AREA B - COLLEGE BLVD BRIDGE FACILITY (REIMB.) PLD AREA B - FARADAY AVE/MELROSE DR DRAINAGE FACILITIES 306,31 1 PLD AREA B - PARK DRIVE AND TAMARACK AVE STORM DRAIN PLD AREA B - TAMARACK AVE /ECR STORMDRAIN/SILTATION BASIN PLD AREA C - CARLSBAD BLVD ENCINAS CREEK BRIDGE REPLACEMENT 286,343 9,557,468 Loans: None Fee Per Gross Acre: Area A - Buena Vista Lagoon Area B - Agua Hedionda Lagoon Area C - Encinas Creek Area D - Batiquitos Lagoon BFB FUND 350 110,104 FUND 351 5,785,931 FUND 352 3,574,269 FUND 353 87,164 138,467 | 367,360 1,637,207 8,426,08! Low Runoff High Runoff $ 2,201 $ 3,602 4,731 7,742 3,538 5,789 48 79 REMAINING 2009-10 AND ESTIMATED APPR. + ENC. FUTURE CONSTRUCTION AT 6/30/09 APPROPRIATIONS DATE 9,241,081 2020-24 Complete 676,760 - In Progress 37,91 1 2,487,891 In Progress 51 1 ,979 - In Progress 1,816,101 2015-19 Complete 1,068,613 2015-19 904,329 2020-24 1,307,557 945,665 In Progress 3 2,534,207 16,463,680 Total: 18,997,887 PERCENTAGE PAID BY FEE 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% FEES INTEREST CAP EXP EFB 2,022 4,995 - 117,121 204,625 205,339 1,350,864 4,845,031 (68,180) 153,118 286,343 3,372,864 3,908 - 91,072 9,557,468 138,467 367,360 1,637,207 8,426,088 mx ro FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 TRAFFIC IMPACT FEE FUND BEGINNING BALANCE 2008-09 FEES INTEREST OTHER REVENUE OTHER EXPENDITURES CAPITAL EXPENDITURES ENDING BALANCE Projects: AVENIDA ENCINAS WIDENING - SOUTH OF PALOMAR AIRPORT ROAD CARLSBAD BOULEVARD MOUNTAIN VIEW TO NORTHERLY CITY LIMITS (20% FUNDING) CARLSBAD BOULEVARD MOUNTAIN VIEW TO NORTHERLY CITY LIMITS -(RTCIP/20% FUNDING) CARLSBAD BOULEVARD / PALOMAR AIRPORT ROAD (20% FUNDING) CARLSBAD BOULEVARD / PALOMAR AIRPORT ROAD (RTCIP / 20% FUNDING) CARLSBAD BOULEVARD WIDENING - CANNON TO MANZANO CARLSBAD VILLAGE DRIVE - PONTIAC TO VICTORIA CFD #3 - PAR TRUN LANE TO MELROSE EL CAMINO REAL AND CARLSBAD VILLAGE DRIVE DUAL LEFT TURNS EL CAMINO REAL LEFT TURN LANE TO WEST TAMARACK EL CAMINO REAL RIGHT TURN LANE TO NORTH ALGA ROAD EL CAMINO REAL / CANNON ROAD INTERCHANGE IMPROVEMENTS EL CAMINO REAL WIDENING - ARENAL ROAD TO LA COSTA AVENEUE (RTCIP) EL CAMINO REAL WIDENING - ARENAL ROAD TO LA COSTA AVENEUE EL CAMINO REAL WIDENING - S. CHESTNUT & S. ALGA EL CAMINO REAL WIDENING - TAMARACK AVENUE TO CHESTNUT AVE. EL CAMINO REAL WIDENING - TAMARACK AVENUE TO CHESTNUT AVE. (RTCIP) MELROSE DRIVE AND ALGA ROAD DUAL LEFT TURN LANES (RTCIP) MELROSE DRIVE TURN LANE TO WEST PALOMAR AIRPORT ROAD PALOMAR AIRPORT ROAD AND COLLEGE BOULEVARD PALOMAR AIRPORT ROAD TURN LANE TO SOUTH EL CAMINO REAL PALOMAR AIRPORT ROAD TURN LANE TO NORTH EL FUERTE STREET PALOMAR AIRPORT ROAD WIDENING AT PASEO DEL NORTE POINSETTIA LANE WIDENING - PASEO DEL NORTE TO BATIQUITOS (RTCIP) SIDEWALK/STREET CONSTRUCTION - VALLEY AND MAGNOLIA SIDEWALKS SIDEWALK/STREET CONSTRUCTION PROGRAM TRAFFIC MONITORING PROGRAM TRAFFIC SIGNALS - AVIARA PARKWAY - POINSETTTIA TO EL CAMINO REAL REMAINING APPR. + ENC. AT 6/30/09 2009-10 AND FUTURE APPROPRIATIONS ESTIMATED CONSTRUCTION DATE PERCENTAGE PAID BY FEE 7,413 9,240 306,087 22,846 22,877 17,825 102,769 12.455,330 |655,891 562,663]489,057 | 13,184,827 |10,665,593 | Total: 31,423,392 42,088,985 57,512 - - - - - - 79,260 - - - - - - 522,115 6,230,718 - - - - - - 1,577,975 - 570,897 1,477,848 129,773 19,495 5,177,000 782,496 1,012,960 740,896 2,927,600 5,574,400 2,466,880 - 899,600 286,000 348,400 589,000 625,040 1,772,160 - - 422,000 983,840 410,000 587,000 590,720 952,640 - 825,760 305,000 1,800,000 1,344,000 - In Progress 2020-24 2020-24 2020-24 2020-24 2020-24 2020-24 In Progress 2015-19 2010-11 2015-19 2012-13 2015-19 2015-19 In Progress In Progress 2009-10 2020-24 2010-11 2009-10 2015-19 2015-19 In Progress 2020-24 In Progress Ongoing Ongoing In Progress 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 34.78% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 3.78% Loans: - Received $2,857,238 loan from the CFD #1 Fund for the construction of several circulation element roadways. Repayment is scheduled as fees are collected. Interest is not charged. Fees: $240.00/ADT - Single Family Residential $290.00/ADT - Condominium S373.00/ADT - Apartment $96.00/Trip - Commercial/Industrial mx3; 5;j*ro u~\ FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 PUBLIC FACILITIES FEES BEGINNING BALANCE Projects: 2008-09 FEES INTEREST ALGA NORTE PARK - PHASE 1 - 30 ACRES DEVELOP. (SE QUAD) ALGA NORTE PARK - PHASE 1 1- 50 METER POOL (SE QUAD) AVIARA COMMUNITY PARK - 24.25 ACRES (SW QUAD) OTHER CAPITAL OTHER REVENUE (1) EXPENDITURES EXPENDITURES 67,453 147 115 REMAINING ENDING APPR. + ENC. BALANCE AT 6/30/09 20,414,854 5,599,547 - AVIARA COMMUNITY PARK - COMMUNITY BUILDING CANNON ROAD AND AVENIDA ENCINAS EL CAMINO REAL MEDIANS EL CAMINO REAL MEDIANS - LA COSTA FIRE STATION #3 - RELOCATION FIRE STATION #6 - PERMANENT LEO CARRILLO PARK - PHASE III LEO CARRILLO RANCH BARN RESTORATION LEO CARRILLO BARN LIBRARY EXPANSION (COLE) 115 - - 1,000,000 228,853 - 23 - - 149,700 765,470 - - 648,699 - - - - PINE AVENUE PARK - PINE COMMUNITY BUILDING - PHASE II PINE AVENUE PARK -RESTROOMS/STORAGE BLDG POINSETTIA COMMUNITY PARK - PARKING POINSETTIA COMMUNITY PARK - PHASE III (SW QUAD) 46,265,443 1,045,221 1,852,240 32,643 282,460 127,040 1,611,809 892,875 17,051 47,678,135 28,488,196 Total: 2009-10 AND FUTURE APPROPRIATIONS - - - 7,937,488 - - 1,390,500 6,001,000 - 1 ,057,000 - 500,000 9,776,000 7,919,958 276,656 - 13,531,440 48,390,042 76,878,238 ESTIMATED CONSTRUCTION DATE In Progress In Progress Complete 2020-24 In Progress In Progress 2013+ 2010+ In Progress 2013+ Complete 2015-19 2020-24 2020-24 2010-11 In Progress In Progress PERCENTAGE PAID BY FEE 100.00% 21.54% 100.00% 73.88% 100.00% 24.09% 100.00% 92.84% 100.00% 54.96% 67.38% 100.00% 67.24% 81.89% 73.45% 100.00% 100.00% (1) Includes rental revenue. Loans: None Fee:3.50% of Building Permit Value mx3; 5; e*t ro FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 MAJOR FACILITIES FEE FUNDS (POTABLE/RECYCLED WATER! BEGINNING BALANCE Projects: "D" RESERVOIR 2008-09 MISC CA FEES INTEREST REVENUE EXPEN CALAVERA HILLS WATER BOOSTER STATION STANDBY GENERATOR MAERKLE PUMP STATION IMPROVEMENTS MAERKLE RESERVOIR STORAGE MARRON ROAD PRESSURE REGULATING STATION TO O'SIDE MASTER PLAN UPDATE RECYCLED WATER - IRRIGATION SERVICE RECYCLED WATER - INNOVATION WAY/GATEWAY WATERLINE - COLLEGE BLVD - CANNON TO BADGER WATERLINE - COLLEGE BLVD - ECR TO CANNON - REIMBURSEMENT WATERLINE - EL CAMINO REAL - COLLEGE TO JACKSPAR WATERLINE - EL CAMINO REAL CROSSING AT KELLY DRIVE WATERLINE - EL FUERTE - NORTH OF LOKER - REIMBURSEMENT WATERLINE - FARADAY - ORION TO MELROSE - REIMBURSEMENT WATERLINE - FARADAY AVENUE EXTENSION - REIMBURSEMENT WATERLINE - MELROSE DRIVE - PAR TO FARADAY - REIMBURSEMENT WATERLINE - POINSETTIA LANE - EAST OF BLACK RAIL ROAD WATERLINE - POINSETTIA LANE - EL CAMINO REAL TO SKIMMER COURT WATERLINE - POINSETTIA LANE - SKIMMER COURT TO CASSIA WATERLINE - RANCHO CARRILLO OVERSIZING/EXTENSION 20,316,163 Loans: None. 541,364 925,520 REMAINING 2009-10 AND PITAL ENDING APPR. + ENC. FUTURE DITURES BALANCE AT 6/30/09 APPROPRIATIONS 6,666,504 502,444 1 ,000,200 14,814,280 797,888 27,209 472,791 150,000 8,318 221,682 29,912 645,088 1,066,000 530,000 530,000 100,440 60,870 250,000 875,471 776,000 1,475,000 239,720 130,728 398,944 31,924 97,363 21,685,684 5,697,342 | 26,006,708 Total 31,704,050 ESTIMATED CONSTRUCTION DATE 2015-19 2011-12 2015-19 2011-12 2020+ In Progress 2009-10 2009-10 2009-10 2009-10 Complete Complete 2009-10 2009-10 2009-10 2009-10 2015-19 2015-19 2015-19 Complete PERCENTAGE PAID BY FEE 75.00% 100.00% 50.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 50.00% 100.00% 44.00% 100.00% Fee:$3,549 (5/8" Meter Size). Fees vary depending on meter size. mx J FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 SEWER BENEFIT AREA FUNDS (516/517) BEGINNING BALANCE 2008-09 FEES INTEREST OTHER REVENUE CAPITAL EXPENDITURES ENDING BALANCE REMAINING APPR. + ENC. AT 6/30/09 2009-10 AND FUTURE APPROPRIATIONS ESTIMATED CONSTRUCTION DATE PERCENTAGE PAID BY FEE AVIARA LAND ASSOCIATES REIMBURSEMENT AGREEMENT(J.L) CARLSBAD TRUNK SEWER REACHES VCT1A-1C CONTINENTAL REIMBURSEMENT AGREEMENT (H) KELLY LAND COMPANY REIMBURSEMENT TERRACES AT SUNNY CREEK REIMBURSEMENT 7,489 63,120 308,304 360,631 595,678 120,600 747,663 800,006 935,789 Complete 2015-19 Complete Complete Complete 100.00% 100.00% 100.00% 100.00% 100.00% 1,254,877 488,232 31,484 739,544 1,035,049 - I Total: 3,199,736 3,199,736 Loans: None. Fee:$ 468.00 824.00 2,003.00 2,007.00 2,960.00 2,976.00 -Area A -Area B -Area C -Area D -Area E -Area F $ 127.00 956.00 1,647.00 1,302.00 64.00 -Area G -Area H -Area J -Area L -Area M Areas I and K were merged into Area L. mx3; 5; I* to FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 66006 YEAR ENDED JUNE 30, 2009 WASTEWATER CONNECTION FEE FUND BEGINNING BALANCE (2) Projects: 2008-09 FEES INTEREST VISTA/CARLSBAD INTERCEPTOR - AGUA HEDIONDA LIFT STATION BUENA VISTA LIFT STATION FORCE MAIN ENCINA PHASE V EXPANSION ENCINA REVENUE BOND DEBT SERVICE SEWER MASTERPLAN UPDATE WASTEWATER MONITORING PROGRAM VISTA/CARLSBAD TRUNK LINE INTERCEPTOR (REACH 11B) OTHER CAPITAL ENDING REVENUE (1) EXPENDITURES BALANCE 317,124 42,962 1,211,645 923,388 1,570 33,000 703,104 REMAINING APPR. + ENC. AT 6/30/09 2,770,816 2,807,038 - 98,430 55,000 3,455,684 VISTA/CARLSBAD TRUNK LINE INTERCEPTOR (REACH 3) VISTA/CARLSBAD TRUNK LINE INTERCEPTOR (REACH 13-15) 22,836,372 751,894 888,021 366,770 50,977 3,599,563 20,927,7C 1,631,983 )1 10,818,951 2009-10 AND FUTURE APPROPRIATIONS 14,180,640 2,875,000 - 5,584,974 264,000 - 2,265,000 2,688,220 12,100,000 39,957,834 ESTIMATED CONSTRUCTION DATE In Progress In Progress Complete In Progress In Progress In Progress In Progress 2011-12 In Progress PERCENTAC PAID BY FE 69.10% 89.60% 100.00% 100.00% 100.00% 100.00% 69.10% 89.60% 56.10% (1) Includes transfer in for debt service ($50,977). (2) Beginning balance as restated for prior period adjustment. Loans: None. Fee: $1,096 - General Capacity Fee for all Areas mx3; 5; 3-' INS 2009-10 CAPITAL IMPROVEMENT PROGRAM I-1 OVERVIEW The City of Carlsbad 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. All construction costs are estimates and are reviewed and further refined each year. 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. Information is shown in subsequent years to provide the most comprehensive snapshot of all the known future facilities the City of Carlsbad plans to construct. The Fiscal Year 2009-10 Capital Improvement Program outlines approximately $70.4 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 same fiscal year are estimated at $58.7 million. Revenues are collected as building permits are issued; 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. A large increase in the cost of construction materials has occurred over the past four years, pushing up the cost of projects. With the economic recession, the increases in the cost of construction materials are expected to moderate over the next two to three years. Proposition C was approved by the voters of Carlsbad in November 2002. It allowed the City to expend over $1 million (per project) of general funds to help finance the following projects: • City/Safety Training Center • A portion of Cannon Road – East of College (Reach 4) • Trails and Open Space • A Swimming Pool Complex After the voters approved the ballot initiative, the City set aside $35 million for Proposition C projects. Currently, $16.2 million has been appropriated for Alga Norte Park, $13.7 million has been appropriated for the Joint First Responders Training Facility, and $100,000 is allocated for design of a City Administrative Training Facility. A remaining balance of $5.0 million is available to help fund Proposition C projects. It is still anticipated that the City will meet 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. 2009-10 CAPITAL IMPROVEMENT PROGRAM I-2 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 facilities that are located on or in the ground. In most cases, the total construction cost of each of these assets is recorded and tracked as part of the City’s inventory of capital infrastructure assets and other City-owned property. The CIP and the Operating Budget are integral parts of the total City financing plan. Staff began the process by evaluating the construction schedules for City facilities in conjunction with the workload of the staff needed to complete the projects. Staff also met with the City Council to identify their priorities. In the FY 2009-10 CIP, there are approximately 225 continuing and new projects planned through buildout. All projects were analyzed using the criteria shown in the table. Project timing was reviewed, and an evaluation of the availability of capital construction funds as well as operating funds was then factored into the evaluation process. 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 the buildout of the City. All construction costs are estimates and only projects scheduled for FY 2009-10 are appropriated. The information shown in the future years reflect the most comprehensive snapshot of the known future facilities and their associated cost at this point in time. 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. • 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, parking facilities, and an aquatic center. The aquatic center will include a 55-meter competition pool, a 12-lane instructional pool and a therapy pool as well as a water play area for toddlers (Phase I). In addition, a moving river, water slides and wet play structure are planned for Phase II. A swimming pool complex was one of the projects approved by the voters through Proposition C in 2002. The total cost of the park and aquatic center - Phase I is estimated to be $39.8 million. Total appropriation for the park and Phase I and Phase II of the aquatic center is currently at $50.4 million. Project Ranking Criteria 1. Is the project required to ensure the health and safety of the citizens, as the result of a legal mandate, or to maintain compliance with the City’s Growth Management Plan? Are operating funds available to operate the facility? 2. Is the project needed soon for growth management compliance? 3. Is the project needed now for other City standards (example: ball field standards)? 4. Does the project complete or provide part of the basic infrastructure (example: a linking road segment)? 5. Are there other reasons to construct the project (example: Council priority, timing or funding opportunity, public demand)? 2009-10 CAPITAL IMPROVEMENT PROGRAM I-3 • Leo Carrillo Park – Phase III – The third phase of this historic park facility includes renovation of additional buildings, construction of additional restrooms, an arboretum area, and transformation of a barn into a community theater. The total cost is approximately $2.4 million and design is expected to begin in FY 2013-14. 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 several years. • Public Works Center – The construction of the Public Works Center and associated improvements include offices, shops, a yard, warehouse and parking to accommodate the Public Works Department. The cost of the project is approximately $28.1 million. • 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 help ensure the five-minute response time. The new station is budgeted as a 6,200 square foot facility and the current proposed site is in Robertson Ranch. Total cost is projected at $7.5 million. • Joint First Responders Training Facility – Carlsbad’s Joint First Responders Training Facility is planned for construction on a site at the Carlsbad Safety Center adjacent to Fire Station No. 5, at a total cost projection of $24.5 million. Preliminary plans for this facility include a 25-lane shooting range, a 4-story fire training tower, a 2-story residential training facility, and an outdoor seating pavilion. STREET PROJECTS Traffic congestion continues to be one of the top concerns among citizens. 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 street projects include: • El Camino Real Widening – Tamarack to Chestnut – The project includes the widening of El Camino Real to prime arterial roadway standards. Current cost estimates have been updated due to the need to acquire additional roadway right-of-way and the actual design of the retaining walls along both sides of the roadway. The refined scope of work results in an increase to the project’s total estimated cost of $4.3 million, bringing the total estimated cost of the project to $12.3 million. Appropriations of $4.7 million are being requested in FY 2009- 10. • El Camino Real Medians – The project is the construction of the missing segments of the medians along El Camino Real. Current cost estimates have been updated, resulting in an increase to the total estimated costs of $2.7 million, of which $1.1 million is being requested in FY 2009-10. The revised total estimated cost of the project is $5.2 million. • Pavement Management –Carlsbad’s local streets are maintained on a regular cycle to ensure a good riding surface and to extend the life of the street. Part of that maintenance program is the sealing and overlay of the existing street surface. In addition, any problem areas are addressed as they are identified. The FY 2009-10 CIP has $4.5 million budgeted for this program which includes an advance of $1.0 million from the FY 2010-11 funding program to complete the overlay of College Blvd. from Faraday Ave. to Palomar Airport Road in a timely manner and will reduce the amount of costly removal and reconstruction work that could 2009-10 CAPITAL IMPROVEMENT PROGRAM I-4 result from delays. • Concrete Repair – This is a companion program to the pavement management program. It will insure that curbs, gutters and sidewalks are also properly maintained. By allocating the funding, both pavement and concrete replacements can be accomplished at the same time. This will help maximize efficiencies and reduce inconvenience to Carlsbad citizens. The FY 2009-10 CIP has $350,000 budgeted for this program. • Carlsbad Boulevard Encinas Creek Bridge Replacement – Complete replacement of the existing bridge, originally constructed in 1913, is planned in the next 5 years at an estimated cost of $2.5 million. • Poinsettia Lane Reach E - This project includes completion of the final link along Poinsettia Lane between Cassia Road east to Skimmer Court. The total cost is approximately $13.5 million and the City expects to begin the design in FY 2013-14. WATER/ WASTEWATER PROJECTS The City’s water and wastewater projects are a vital component to the continued health and welfare of its citizens. Most new lines are built and paid for by developers. As the City ages, it will become necessary to repair and replace the lines that already exist, and an increase in these projects is anticipated in future years. • Vista/Carlsbad Interceptor & Agua Hedionda Lift Station Replacement – The project consists of constructing a parallel sewer interceptor system to accommodate existing and future sewer flows from the cities of Vista and Carlsbad. The individual projects include a parallel force main in Jefferson Street, replacement of the Agua Hedionda Lift Station, and a parallel gravity main from the Lift Station to the Encina Wastewater Facility. New appropriations of $31.4 million are included in the FY2009-10 CIP for the Vista/Carlsbad Interceptor projects. The overall total cost estimates for all years for the five components of this project have increased approximately $2.9 million, for a total cost of $47.4 million, of which $14.7 million is to be funded by the City of Carlsbad, with the remainder of $32.7 million to be funded by the City of Vista. • Wastewater Lines – Other major wastewater lines scheduled for construction or replacement within the next five years include: – Buena Interceptor Sewer Improvements – Home Plant Lift Station Replacement – North Agua Hedionda Sewer Replacement • Water Lines – Major water lines scheduled for construction or replacement within the next five years include: – Carlsbad Boulevard – South of Avenida Encinas – Maerkle Transmission Main – Tri-Agencies Water Transmission Pipeline Replacement • Maerkle Reservoir Storage – Construction of a buried 16 million gallon water storage reservoir next to the existing reservoir is planned in order to provide additional emergency storage and meet the 10-day storage criteria based on ultimate demands. The total cost is estimated at $14.8 million. • Hydroelectric Pressure Reducing Station at Maerkle Reservoir - On April 14, 2009, Council authorized staff to move forward with the development of a hydroelectric pressure reducing station at the Maerkle Reservoir. This electricity generating project will provide a renewable energy source for the City. The cost estimate for this project is $1,250,000. 2009-10 CAPITAL IMPROVEMENT PROGRAM I-5 CAPITAL PROJECTS THROUGH BUILDOUT The CIP for FY 2009-10 to Buildout outlines approximately 90 new or continuing projects and 135 future projects for a total of 225 projects at a cost of approximately $441.3 million as shown below: Project Type Percent Total Cost Streets/Circulation 30% 131,697,555 Civic Projects 18% 79,097,322 Wastewater 20% 90,064,024 Parks 15% 65,186,866 Water 11% 46,807,874 Drainage 5% 22,801,256 Other (loans)1% 5,650,000 Total Future 100%441,304,896 CIP Projects - All Future Project Costs Park and recreational facility construction and acquisition projects total approximately $65.2 million. Park projects planned within all quadrants of the City are listed below in addition to when the design and/or construction are expected to begin. More detail follows on specific projects not discussed earlier in this report. PARK PROJECTS BY QUADRANT Northwest Quadrant Pine Ave. Park-Restroom/Storage Building: 2010-11 Pine Avenue Park Community Building: 2020-24 Southwest Quadrant Poinsettia Park Community Building: 2013-14 Aviara Community Building: 2020-24 Citywide Park and Recreational Project Veteran’s Memorial Park: 2020-24 Business Park Recreational Facility: 2020-24 Northwest Quadrant Robertson Ranch Park Site Development: 2020-24 Southeast Quadrant Alga Norte Park: TBD Alga Note Aquatic Center: TBD Leo Carrillo Park Phase III: 2013-14 • 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. • 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, clubhouse, stadium court and additional parking. The cost is expected to be approximately $14.6 million. The timing of the design is scheduled to begin in FY 2013-14. 2009-10 CAPITAL IMPROVEMENT PROGRAM I-6 • Veterans Memorial Park – This project is located south and east of Agua Hedionda Lagoon adjacent to the City Golf Course, The Crossings at Carlsbad. 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. Approximately 30% 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 as well as 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 funding for sidewalk construction, concrete repair work and pavement overlay. Currently there are about 20 traffic signals identified and recommended for construction in future years. Wastewater and drainage projects are expected to cost over $112.9 million, which includes approximately $53.8 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 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 Poinsettia Lane. Replacement of existing potable and recycled waterlines is also included in this category, and additional reservoirs are planned to increase storage for ultimate demands. In addition, $28.0 million is planned for known replacement projects. Construction of Civic facilities such as libraries, administrative facilities, police and fire facilities are currently estimated at $79.1 million of the total planned capital expenditures to buildout. UNFUNDED PROJECTS There are several projects identified in the CIP for which there is no identifiable funding source and in some cases where only partial funding has been identified. The City will investigate obtaining possible outside funding such as Federal and State grants, loans, or other financing sources. Once funding is identified for these projects the project costs will have to be reviewed and updated to reflect actual cost estimates. The unfunded projects do not receive annual inflationary increases. These projects are: • Business Park Recreational Facility (partial) • Cannon Lake Park (6.7 Acres) • Cannon Road - Reach 4 – Cannon Rd./College to City Limits • Carlsbad Boulevard Mountain View to Northerly City Limits (partially funded)* • Carlsbad Boulevard/Palomar Airport Road Improvements (partially funded)* • Hosp Grove/Buena Vista Lagoon Improvements • Palomar Airport Road Widening and Bridge Reconstruction • Pine Avenue Park – Madison Property • Robertson Ranch (NE Quadrant) Park Development (partial) (*) These projects are in the revised TIF fee program approved by the City Council on May 5, 2009, which was planned to generate enough revenue to pay for approximately 20% of the total cost. The remaining portion is unfunded. . 2009-10 CAPITAL IMPROVEMENT PROGRAM I-7 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 climate. 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 might develop are then summarized to prepare future projections about when and where residential and non-residential development will occur. Finance Department staff prepares 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 considered 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 has slowed significantly due to the economic recession. 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 are driving the timing of the future units. There are approximately 5,044 units remaining before the City is predominantly built out. Residential development for FY 2009-10 is projected at 74 units with an average about 150 units per year over the next five years. This is compared to an average of over 638 units per year for the previous five-year period. The decline, particularly in the next 5 years, is due to the current economic downturn and the dwindling supply of developable land. The amount of non-residential development is projected to also decline significantly over the next five years. The average annual square feet of non-residential development for the past 5 years was about 1,129,000. For FY 2009-10, the estimate is for 245,000 square feet, and the average annual development for the next 5-year period is approximately 509,000 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, and a daycare facility and church. A senior care facility is planned in the northeast quadrant. Other commercial developments are planned at Robertson Ranch and Bressi Village; there are also two hotels anticipated. Industrial development consists of various new office and industrial projects, as well as expansion of existing projects at Kelly Corporate Center and Legoland. The desalination plant is also anticipated within the next five years. Development estimates provide the data and basis for estimating future fee revenues, which are calculated by multiplying each applicable development fee by the estimated number of dwelling units and/or square feet of construction expected during each year. The following table shows the number of residential units and non-residential square feet of development used in calculating estimated revenues for FY 2009-10 and subsequent years to buildout. 2009-10 CAPITAL IMPROVEMENT PROGRAM I-8 Projected Development Residential and Non-Residential Construction Year Residential Units Non-Residential Square Feet 2008-09 current 64 233,878 2009-2010 74 245,156 2010-2011 99 267,855 2011-2012 131 366,126 2012-2013 249 505,653 2013-2014 196 381,567 Years 6-10 1,433 3,502,117 Years 11-buildout 2,798 4,191,631 Total Future 5,044 9,693,983 REVENUES Revenues for Capital Projects from now until buildout are estimated to be approximately $600.9 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 Wastewater Replacement funds, (4) Infrastructure Replacement funds (other than wastewater and water), and (5) Other sources including grants, bond issues, and contributions from other agencies. Developer Fees 28.3% Financing Districts 7.7% Utility Infrastructure Replacement Transfers 23.3% Infrastructure Replacement Transfers 22.8% Other Agencies 17.9% Revenue Estimates FY2009-10 to Buildout Total Revenue = $600.9 Million Approximately 28.3% 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 commercial/ industrial 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) comprise 7.7% of the total. Water and Wastewater replacement revenues generated by user fees equal approximately 23.3% of total revenues, and are used to pay for replacement of existing water and sewer facilities. Infrastructure replacement revenues, equal to 22.8%, are 2009-10 CAPITAL IMPROVEMENT PROGRAM I-9 transfers from the City’s General Fund which are being set aside to pay for replacement of major capital facilities other than wastewater and water facilities. The remaining 17.9% consists of revenues from other agencies and include federal and state grants, the county sales tax program (TransNet), redevelopment agency revenue, 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 $178,633 per multi-family dwelling unit, and $315,200 per single-family dwelling unit. A building permit valuation of $42 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. The trips-per-day value for commercial and industrial buildings are 40 and 8 trips per 1,000 square feet of development, respectively, although the actual volume of trips generated by commercial/industrial building can vary widely depending on the ultimate land use. CFD #1 is a citywide district established to finance various civic facilities required under the City’s Growth Management Plan. CFD #3 was established for the Faraday Avenue and Melrose Drive Extensions east of El Camino Real, as well as the extension of El Fuerte. This project encompasses the extension of Melrose Drive from Palomar Airport Road to the Carlsbad/Vista city limits and the extension of Faraday Avenue from Orion Way to Melrose Drive in Vista. 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. SUMMARY The FY 2009-10 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 FY 2009-10 to Buildout Capital Improvement Program reflects the commitment of Carlsbad’s City Council and staff to continue providing its residents with a better quality of life. 2009-10 CAPITAL IMPROVEMENT PROGRAM I-10 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 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 - Library - Wastewater Treatment - Parks - Circulation - Drainage - Fire - Open Space - Schools - Sewer Collection - Water Distribution 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 FY 2009-10 CIP, compliance with the Growth Management Plan is continued. CAPITAL PROJ SCHEDULE OF CAPITAL PROJECTS FUND SUMMARY FUND SUMMARY