HomeMy WebLinkAbout2010-06-08; City Council; 20259; FY 2010-11 Preliminary Operating Budget WorkshopCITY OF CARLSBAD - AGENDA BILL 11
20,259AB#
MTG. 06/08/10
DEPT. Finance
Fiscal Year 2010-11 Preliminary
Operating Budget Workshop
DEPT. DIRECTOR
CITY ATTORNEY
CITY MANAGER
RECOMMENDED ACTION:
Accept report. Set public hearing for June 29, 2010.
ITEM EXPLANATION:
The Operating Budget work session on June 8, 2010 is an opportunity for the City Council to
review the Fiscal Year 2010-11 Preliminary Operating Budget. City staff will be making
presentations and will also be available to answer questions. The Preliminary Capital
Improvement Program was presented to the City Council at the May 11, 2010 City Council
meeting.
In addition, a Citizens' Budget Workshop will be held on Thursday, June 10, 2010, at 6:00
p.m. at the Faraday Center, 1635 Faraday Avenue, Room 173B, to provide the public with an
opportunity to discuss the Operating Budget and Capital Improvement Program with staff. The
public hearing and adoption of the FY 2010-11 Operating Budget and Capital Improvement
Program is scheduled for the June 29, 2010 City Council meeting.
2010-11 BUDGET OVERVIEW:
The focus behind this year's budget development was to incorporate a new organizational
structure while maintaining the City's long-term plan for a balanced budget, given the continued
economic uncertainty. Maintaining core City services at their current levels was a top priority in
developing the budget for the coming year.
As the City is transitioning from a growing and developing city to a built-out city, for FY 2010-11,
a new organizational structure will be implemented to better serve the changing needs of the
community, as well as to allow for increased efficiencies with fewer resources. In order to
concentrate efforts on core services, this reorganized structure realigns City staff and allows for
the elimination of 12.25 positions.
The ongoing recession has had a significant effect on City finances. Over the last two years,
the City has adapted to the recession by reducing spending in areas with the least direct effect
on core City services, and by reducing overall staff size. This resulted in a two-year decrease
of about $10 million in General Fund operating expenditures, as compared to the original
DEPARTMENT CONTACT: Judi Vincent 760-602-2430 iudi.vincent@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
COUNCIL RECEIVED REPORT
D
D
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adopted budget for FY 2008-09. By planning ahead, the City was able to make adjustments to
its budget over the last two years to compensate for large decreases in revenues, avoiding
major changes for FY 2010-11.
Responsible management of City resources includes maintaining a focus on a sustainable
future. City staff continues to monitor local, state and federal economic forecasts and routinely
prepares and updates a ten-year forecast for the General Fund in order to understand the
effects of today's actions on the City's future. Since economic uncertainty continues, this long-
term perspective becomes even more important. Based on these tools, the Preliminary Budget
assumes a relatively flat economy for FY 2010-1.
Public safety employee contract negotiations were underway, but not yet complete, at the time
the Preliminary Budget was prepared. Any actions resulting from the negotiations currently
underway are not included in the Preliminary Budget, but will be incorporated as part of the
Final Budget once decisions are reached.
Based on the above actions and assumptions, the Preliminary Operating Budget for FY 2010-
11 was developed for a total of $189.1 million, which represents a decrease of $2.0 million, or
1.1%, as compared to the FY 2009-10 adopted budget. Operating revenues are estimated at
$193.2 million, which is about a $0.2 million increase, or 0.1%, over the current year's
projections. The recommended General Fund Operating Budget is $110.2 million, with
estimated revenues of $110.4 million. This is a 3.8% decrease in the estimated General Fund
revenues as compared to the projected FY 2009-10 revenues, and a 1.0% increase in General
Fund budgeted expenditures compared to the FY 2009-10 adopted budget.
General Fund Estimated Revenues - The majority of the City's General Fund revenues come
from taxes. In the upcoming year, it is expected that property tax revenue will be
approximately $48.7 million. This is a decrease of 1.8% from the revised FY 2009-10
projections. The FY 2010-11 property tax revenue is based on the assessed value of property
in Carlsbad, which includes an estimated decrease of 1.8% in assessed evaluation, as provided
by the County Assessor in May 2010.
Sales taxes are expected to total $22.9 million for FY 2010-11, an increase of 3.6% compared
to the FY 2009-10 revised projections. These estimates assume that the slight improvements
we have seen in the economy will continue over the next year, as well as the addition of new
retail establishments at Paseo Carlsbad. The City's sales tax base is heavily weighted in the
transportation (predominantly new car sales) and retail sectors. These two sectors make up
approximately 68% of the City's sales tax base and were negatively impacted by the economic
recession. The City of Carlsbad has many car dealerships which historically generated
approximately $6.0 million of sales tax each year. Car sales slowed during FY 2008-09 and are
expected to remain slow during FY 2010-11 resulting in annual car sales projections of
approximately $4 million. Retail comprises over 41% of the sales tax generated in Carlsbad
and has also been impacted by the slow economy. As consumer confidence increases during
the recovery, the City's sales tax revenues are projected to gradually increase.
The FY 2010-11 revenues for Transient Occupancy Taxes (TOT) are estimated at $12 million,
a 3.5% increase over prior year projections, due to anticipated increases in occupancy and the
average daily rate at the City's various hotels. Franchise taxes are estimated at $5 million, an
increase of 2%, primarily due to an increase in franchise taxes on gas and electric services,
which are paid by San Diego Gas and Electric (SDG&E).
(7^
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Development Revenues are expected to continue to increase as a result of the improvement
in the economy and real estate market and are estimated to be $2.4 million in FY 2010-11 as
compared to $2.2 million projected in FY 2009-10.
General Fund Budgeted Expenditures - The General Fund contains most of the discretionary
revenues that fund the basic core City services. The recommended General Fund Operating
Budget is $110.2 million which represents a $1.1 million, or 1.0%, increase in General Fund
budgeted expenditures compared to the FY 2009-10 adopted budget. The majority of the
increase is due to budgeting additional transfers out of the General Fund to other City funds.
Transfers are discussed in more detail further on the next page. In addition, there is an overall
increase in General Fund maintenance and operations costs that is largely offset by an overall
decrease in total personnel costs. This shift is mainly due to the various changes that occurred
related to the City's reorganization efforts. A few expenditures are discussed in more detail
below:
Proposed Position Changes - A decrease of 13.75 full-time and 3.5 limited-term positions,
representing a total decrease of 17.25 positions, is reflected in the FY 2010-11 Preliminary
Operating Budget, as compared to the FY 2009-10 adopted budget. The total decrease includes
the elimination of 12.25 positions identified through the City's realignment efforts, as well as the
elimination of 5 positions that had previously been unfunded.
The FY 2010-11 Operating Budget includes the elimination of the following 13.75 full-time
positions:
2.0 Administrative Secretaries 1.0 Management Analyst
1.0 Assistant Planning Director 1.0 Public Works Manager
1.0 Custodian 1.0 Recreation Specialist
1.0 Deputy City Engineer 1.0 Secretary
1.0 Deputy Public Works Director 1.0 Senior Management Analyst
0.75 Librarian II 2.0 Utility Workers
In addition, the following 3.5 limited term positions have expired and will be eliminated: 2.0
Building Inspectors, 1.0 Associate Planner, and a 0.5 GIS Intern position.
In addition to the eliminated positions mentioned above, there are six other positions that are
projected to remain unfunded for FY 2010-11. The unfunded positions provide an opportunity
for departments to realize salary savings while still maintaining a count for the vacant position,
which could be budgeted again in a future year once the economy improves.
The net increase in hourly staff totaled 0.5. This increase was due to an hourly maintenance
worker being hired to provide a partial replacement for one of the full-time positions eliminated
above.
These changes result in a City workforce of 699.0 full and three-quarter time employees, no
limited term employees, and 138.94 hourly, full-time equivalent positions. As mentioned above,
six of the full-time positions are not funded in the FY 2010-11 Budget.
)
Page 4
New Facilities - The City has a number of major capital projects scheduled to be built over the
next five years. As the City completes these projects, the costs of maintaining and operating
the facilities, including additional personnel if necessary, are added to the Operating Budget.
The Carrillo Ranch Barn Restoration project is scheduled for completion in the spring of 2011.
Additional funds for maintaining this facility will be incorporated into the FY 2011-12 Budget.
Other Budget Requests - The FY 2010-11 Preliminary Operating Budget also includes the
following transfers and advances to other funds:
• $7.2 million transfer to the Infrastructure Replacement Fund to provide funding for
infrastructure replacement as needed in the future. This annual transfer is equivalent
to approximately 6.5% of the estimated General Fund revenues, compared to last
year when it was 6.0% of estimated General Fund revenues.
• $207,000 transfer to the Storm Water Program for reimbursement for the General
Fund portion of Storm Water expenses.
• $253,850 transfer to the Medians District from the General Fund is proposed to
maintain current service levels.
• $1.7 million advance from the General Fund to the Golf Course Fund for operations
assistance - the Golf Course is a relatively new facility and there is only a short history
to support the budget development. The Golf Course's budget and financials are on a
calendar year basis. The Carlsbad Public Financing Authority approved the 2010 Golf
Course Budget including an advance of $1.8 million from the General Fund for
Calendar Year 2010.
• $85,000 to the South Carlsbad Coastal Redevelopment Area (SCCRA) from the
General Fund, as they are not projecting to generate tax increment for FY 2010-11.
However, there are activities that need to be performed to help generate tax increment
producing projects within the area, such as the Ponto Development and the proposed
new desalination project. Once more development occurs in this area, it is anticipated
that the SCCRA will be able to repay the General Fund advances.
Repayments are also included in the FY 2010-11 Budget for the General Fund. The General
Fund has advanced money to several funds. A portion of those advances are being repaid as
follows:
• $136,000 is being repaid from the Storm Water Fund for a loan made from the General
Fund to help establish this fund.
Finally, the City Council's contingency account is proposed at $500,000 in FY 2010-11, which is
equal to the FY 2009-10 budget for this item. This account is available to the City Council to
address unanticipated emergencies or unforeseen program needs.
Page 5
Other Funds - The Enterprise Fund revenues, which include Water, Recycled Water,
Wastewater Services and Solid Waste Management, are projected at $52.2 million, an increase
of $5.2 million (11.1%) over current year projections. The budgeted expenditures are estimated
at $51.6 million for FY 2010-11, which is a decrease of $3.0 million over the FY 2009-10
adopted budget. Rate increases are being proposed in the Water, Recycled Water, Sewer and
Trash Funds to fund maintenance, operations and replacement, as well as to establish and
maintain adequate operating reserves. Primary drivers in the proposed water rate increases are
charges from the San Diego County Water Authority, including a 9% increase in the price of
water purchased (from $814 to $887 per acre foot), and an increase of 18% to fixed charges for
water purchases. A separate public hearing will be scheduled at a later date in order to discuss
the proposed water, sewer, and trash rate increases
Revenues from special revenue funds are expected to total $10.9 million, a $1.9 million, or
14.8%, decrease from FY 2009-10. The expenditures are budgeted at $10.9 million. This is
$0.4 million, or 3.8%, higher than the FY 2009-10 adopted budget. The types of services
supported within special revenue funds include grants (Police, Section 8 Housing Assistance,
Community Development Block Grants), donations, special fees, and assessments (Affordable
Housing Trust Fund, Maintenance Assessment Districts).
The combined Redevelopment Agency budget proposal totals $2.1 million. This is
approximately $300,000 higher than the FY 2009-10 adopted budget. Revenues are estimated
at $3.4 million, a decrease of approximately $0.1 million, or 2.9%, from FY 2009-10 projections.
More information regarding all of the City's projected revenues and Operating Budget
recommendations can be found in the attached exhibits.
FEES AND CHARGES FOR SERVICES
One of the City Council's goals is to annually evaluate fees and charges for services. In
addition to the proposed utility rate increase mentioned above, staff has reviewed all of the fee
schedules and is recommending the changes as shown on Exhibit 6, and further discussed
below.
GENERAL CITY FEES
These are fees charged for the usage of City Services and property such as rentals, and
classes. In the past they have been increased annually by the increase in the annual West
Urban Consumer Price Index (CPI) published by the Bureau of Labor and Statistics, which
reflects the cost of inflation. However, last year the City Council chose not to increase them by
the index which was 3.5%. This year the index was -0.4% for a cumulative change of 3.1%.
Since the future of the CPI is uncertain at this time, no changes are being recommended and
the index and fees will be reviewed again next year to determine if a catch up increase is
needed. The following fees are market driven fees and are proposed to increase:
• Library Fees - Although the majority of the library services are free to the public, the
library does charge for some of their non-core services. These are certain items or
services provided by libraries that are available to, and utilized by, few individuals.
Page6
Non-core items and services could be defined as convenience-based deliverables.
Fees are assigned because the use of the item benefits the individual or group, or
because the item is not considered essential to those primary roles of the library.
Examples include offering meeting rooms, loaning equipment, and printing. The
library has proposed increases to the audio visual insurance fee charged for renting
DVDs or videos from $0.75 to $1, the inter-library loan fee from $2 to $5, the library
book non-pickup fee from $0.50 to $1 and some of the facility fees. Estimated
revenue due to these increases is about $40,000 annually and is not included in
revenue estimates in the FY 2010-11 Operating Budget.
• , Parks & Recreation Fees - In order to keep their fees in line with the market, Parks
& Recreation is proposing to increase a few of their fees. These increases include
an increase of $1 in the open play fee, a 4.5% to 6.4% increase in their aquatic fees,
and a 10% increase in the Carrillo Ranch rental fees. These increases will bring the
fees closer to the mean of the market. Estimated revenue due to these increases is
about $7,000 annually and is not included in the revenue estimates in the FY 2010-
11 Operating Budget. Parks & Recreation will be reviewing the remainder of their
fees this summer with a new pricing policy and will return to Council for approval.
DEVELOPMENT RELATED SERVICE FEES
These are fees charged to recover the cost of staff time and materials spent on development
related activities. A Cost of Service Study is prepared every two to three years to establish the
actual cost of providing the service. Then, annually, Development Related Service Fees are
indexed by the West Urban CPI. An annual review is conducted to ensure that the fees being
charged do not exceed direct and indirect costs of providing the service. The Cost of Service
Study is available from the Finance Department upon request.
As was stated under the General Fees section, the CPI was negative this year so no changes
are being recommended to these fees. The only change included in Exhibit 6 is a new fee of
$530 for Planning Minor Conditional Use Permit Amendment. Currently, there is not a fee for
this service. The proposed fee is based on the estimated cost of providing the service.
DEVELOPMENT IMPACT FEES
These fees are used to recover the cost that growth will have on City infrastructure. These are
increased annually by an index stated in the resolution or ordinances establishing the fees.
Most of them are increased by the Engineering News Record (ENR) construction cost index.
Last year this index was 6.4%. Council chose not to increase them and amended the
ordinances holding fees in abeyance of a period of one year. The index this year was -0.3%
for a cumulative change of 6.1%. Due to the uncertainty of this index over the next year, no
changes are being recommended to the Development Impact Fees and Council will be asked
to amend the ordinances holding the fees in abeyance for another year.
The following Development Impact Fees do have proposed changes as shown on Exhibit 6:
• Traffic Impact Fee - The resolution establishing this fee states that the fee should be
adjusted annually as part of the budget process by 2% or the annual percentage change
in the Caltrans Construction Cost Index, whichever is higher. Since the index was
negative, the fees have been increased by 2%.
Page 7
• Street Lighting Energizing Fee - Recently the Engineering Standards were revised to
require street lights to be High Efficiency Induction (HEI) in lieu of the High Pressure
Sodium (HPS). This will save the City hundreds of thousands of dollars in energy costs.
The current fee in our fee schedule is based on HPS lights. Since the HEI lights have
much lower wattage requirements, the energizing fee is less. These fees have been
revised to reflect this change.
EXHIBITS:
1. Fiscal Year 2010-11 Preliminary Operating Budget (Overview)
2. Operating Funds, Projected Fund Balances for FY 2009-10 and FY 2010-11
3. Operating Funds, Revenue Estimates for FY 2009-10 and FY 2010-11
4. Operating Funds, Budget Expenditure Schedule FY 2007-08 through FY 2010-11
5. Personnel Allocations for FY 2009-10 and FY 2010-11
6. Proposed Fee Changes - June 2010
The Preliminary Operating Budget and Capital Improvement Program for Fiscal Year 2010-11
are on file with the City Clerk.
Exhibit 1
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
The Preliminary Operating Budget for Fiscal Year 2010-11 totals $189.1 million, with revenues
for the year estimated at $193.2 million. General Fund revenues are estimated at $110.4 million
and General Fund budgeted expenditures are $110.2 million.
REVENUE
The following table shows the total operating revenues the City anticipates receiving for
FY 2009-10, as well as those estimated for FY 2010-11.
REVENUE SUMMARY
BY FUND TYPE
(in Millions)
FUND
GENERAL FUND
SPECIAL REVENUE
ENTERPRISE
INTERNAL SERVICE
REDEVELOPMENT
TOTAL
PROJECTED
2009-10
$ 114.8
12.8
47.0
14.9
3.5
$ 193.0
ESTIMATED
2010-11
$ 110.4
10.9
52.2
16.3
3.4
$ 193.2
$
CHANGE
$ (4.4)
(1.9)
5.2
1.4
(0.1)
$ 0.2
%
CHANGE
-3.8%
-14.8%
11.1%
9.4%
-2.9%
0.1%
Revenue estimates for the Operating Budget indicate that the City will receive a total of $193.2
million, a 0.2% increase over the prior year's projections. The significant changes from the prior
year are comprised of a $5.2 million increase in the Enterprise Funds due to the proposed water
and wastewater rate increases. The General Fund shows a decrease of $4.4 million due to a
sale of City property to the Village Redevelopment Area in 2009-10. More information on the
City's revenue sources can be found in the discussion that follows.
General Fund
General Fund revenues provide a representative picture of the local economy. These revenues
are of particular interest as they fund basic City services such as Police, Fire, Library, Street
and Park Maintenance, and Recreation programs. The table below shows a summarized
outlook for the major General Fund revenues.
SIGNIFICANT GENERAL FUND REVENUES
(In Millions)
FUND
PROPERTY TAX
SALES TAX
TRANSIENT OCC. TAX
FRANCHISE TAXES
BUSINESS LICENSE TAX
DEVELOPMENT REVENUES
ALL OTHER REVENUE
TOTAL
PROJECTED
2009-10
$ 49.6
22.1
11.6
4.9
3.4
2.2
21.0
$ 114.8
ESTIMATED
2010-11
$ 48.7
22.9
12.0
5.0
3.5
2.4
15.9
$ 110.4
$
CHANGE
$ (0.9)
0.8
0.4
0.1
0.1
0.2
(5.1)
$ (4.4)
%
CHANGE
-1.8%
3.6%
3.5%
2.0%
2.9%
9.1%
-24.3%
-3.9%'
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
As we enter into a slow recovery from the economic recession discussed in the Budget
Overview section, we are starting to see slight increases in most of the General Fund revenues.
Several of the largest revenue sources in the General Fund are impacted by fluctuations in the
economy. In addition, the housing crisis has not only impacted property taxes, it has also
affected sales taxes, transient occupancy taxes and development related revenues. This
upcoming fiscal year it is expected that property taxes will be approximately $48.7 million, a
1.8% decrease over the projection for FY 2009-10. This is based on a 1.8% estimated
decrease in assessed valuation as provided by the County Assessor in May 2010. The median
price for resales in Carlsbad is currently $681,000 which is up 6% over the same time a year
ago, this could be an indication that residential home values have stabilized.
Property taxes tend to lag behind the rest of the economy, as the tax for the upcoming fiscal
year is based on assessed values from the previous January. Thus, the taxes to be received for
Fiscal Year 2010-11 are based on values as of January 1, 2010. Sales taxes react much
quicker to changes in the economy and therefore will typically grow faster in a good economy,
but also drop off faster as the economy cools.
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nriou
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O— on
%
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n
Property and Sales Tax Revenues
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. „. » "^^~~_,r.. » ,
Fiscal Year
— •— Sales Tax
« Property Tax
Property taxes also
have a cap on how fast
they can grow. This is
due to Proposition 13.
Proposition 13 was
adopted by the State in
1978. This proposition
limits the growth in
assessed values (and
thus property taxes) to
no more than 2% per
year. The value upon
which the tax is based
is only increased to the
full market value upon
the sale of the property.
Thus, property taxes
tend to grow slowly
unless there is a
significant amount of housing activity. In past years, we have seen a robust growth in property
taxes due to new developments, a large number of resales within the City spurring revaluation
of the parcels, and double-digit growth in housing prices.
Sales Tax by Category
Fourth Quarter 2009
Business to Miscellaneous
Business 1%
14%
Sales taxes are expected to total $22.9
million for FY 2010-11, an increase of
3.6% compared to the FY 2009-10
projections. The City of Carlsbad has
many car dealerships which historically
have generated approximately $6.0
million of sales tax each year. Car
sales have slowed since FY 2008-09
but started to show slight gains in the 4th
quarter of 2009 resulting in annual car
sales projections of approximately $4.0
million for FY 2010-11. In recent
months, many national car manufacturers have seen double-digit growth partially due to the
incentives they have offered to lure customers as well as pent up demand. Although the City
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
does not expect to see this type of growth in sales tax revenues from car sales, it is anticipated
that this growth is a sign that the economic recovery may be starting. In addition, retail
comprises over 41% of the sales tax generated in Carlsbad and with a slow economy, it is
anticipated there will be less discretionary purchases as compared to several years ago. As
consumer confidence increases during the recovery, the City's sales tax revenues are projected
to gradually increase. Included in the projected sales tax figures for FY 2010-11 is the opening
of Paseo Carlsbad and new retail outlets in Bressi Ranch.
Several years ago, the State of California implemented the "Triple Flip." The "Triple Flip" is
essentially a temporary swap of a % cent of the cities' sales taxes in return for property tax. It
was done in order to give the state a revenue source against which they could issue deficit
reduction bonds. The City's sales tax estimates continue to show this amount as sales tax since
the amount is reflective of what the City would receive.
As can be seen in the chart on the previous page, the City's sales tax base is heavily weighted
in the transportation (predominantly new car sales) and retail sectors. These two sectors make
up approximately 68% of the City's sales tax base and have been negatively impacted by the
economic recession. As the economic recovery takes hold, sales tax revenues will be one of
the first sources of City revenue to see an increase.
Sales tax estimates also include approximately $700,000 that is restricted to spending on public
safety services under Proposition 172. Proposition 172 requires that the 1/2 cent increase in
California sales taxes be allocated to local agencies, to fund public safety services.
The third highest
General Fund revenue
source is Transient
Occupancy Taxes (TOT
or hotel taxes) estimated
at $12 million for FY
2010-11, an increase of
3.5% compared to FY
2009-10 estimates. It is
anticipated that there will
be slight increases in
occupancy and average
daily rate in FY 2010-11
which combined will
result in an overall
increase from FY 2009-
10. However, group
sales are still struggling
as corporations spend
less on meetings and conferences. This will impact the higher end hotels which are still
predicted to show decreases over the prior year.
Transient Occupancy Taxes
2003 2005 2007
Fiscal Year
2009 2011e
Franchise Taxes
• Other Franchise
DSDG&E Franchise
2003 2005 2007 2009 2011e
Fiscal Year
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
One of the more volatile General Fund revenues is the Franchise tax. Franchise taxes are
paid by certain industries that use the City right-of-way to conduct their business. The City
currently has franchise
agreements for cable TV
service, solid waste
services, cell sites, fiber
optic antenna systems
and gas and electric
services. The cable and
solid waste franchises
have been growing
along with the growth in
population and changes
in their rate structures.
Franchise revenues are
projected to increase by
2.0% primarily due to the
franchise taxes on gas
and electric services, which are paid by San Diego Gas and Electric (SDG&E).
SDG&E pays franchise taxes for the use of the public land over which they transport gas and
electricity. The City also receives an "in-lieu" franchise tax based on the value of gas and
electricity transported on SDG&E lines, but purchased from another source. The "in-lieu" tax
captures the franchise taxes on gas and electricity that is transported using public lands but
which would not otherwise be included in the calculations for franchise taxes, due to
deregulation of the power industry. The majority of the "in-lieu" taxes received is attributable to
Cabrillo Power, the operator of the Encina power plant, based on the gas used in the generation
of electricity.
Development-related revenues include planning, engineering and building permits, and fees
paid by developers to cover the cost of reviewing and monitoring development activities such as
plan checks and inspections. These revenues are difficult to predict, as many of the planning
and engineering activities occur months or years before any structures are actually built.
During FY 2009-10, development related revenues began to turn around from historic lows
experienced in FY 2008-09. For the FY 2010-11 Budget, the development-related revenues are
anticipated to continue to increase as a result of the improvement in the economy and real
estate market. For FY 2008-09 there were 107 units permitted for residential housing. For FY
2009-10 approximately 265 residential units have been permitted through April 2010. For FY
2010-11, 225 permits are projected to be issued for residential housing. The commercial and
industrial building activity remained weak for FY 2008-09 and FY 2009-10 and is expected to
continue to be weak FY 2010-11. A 9.1% increase in building related revenue is projected for
next year as residential activity is projected to remain relatively strong.
Business license taxes are closely tied to the health of the economy and are projected to
increase by 2.9% to an estimated $3.5 million. There are currently about 8,700 licensed
businesses in Carlsbad, with over 2,600 of them home-based.
All other revenues include vehicle license fees, transfer taxes, interest earnings, ambulance
fees, recreation fees, and other charges and fees. The estimate for Fiscal Year 2010-11 totals
$15.9 million, a $5.1 million decrease from the previous year. In FY 2009-10, one time funds
were received from the sale of property to the Redevelopment Agency. In addition, a decrease
in the interdepartmental charges from the recent Citywide redesign is projected in FY 2010-11.
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
Transfer taxes are those taxes paid to the county upon the transfer of interests in real estate.
The tax is 55 cents per $500 of property value, and is split equally between the county and the
City. Carlsbad expects to receive approximately $804,000 in transfer taxes for FY 2010-11,
which is a $300,000 increase over FY 2009-10. This is mainly due to the increase in the
median housing price as well as the increased foreclosure sales. Income from investments and
property includes interest earnings, as well as rental income from City-owned land and facilities.
The City is expected to earn about $1.9 million in interest on its General Fund investments for
Fiscal Year 2010-11.
General Fund Revenues
-2.7%-0.7%-3.7%-6.2%-3.8%
Overall, as reflected in the
bar chart, General Fund
revenues are expected to be
down 3.8% from FY 2009-10
estimates due to the
decrease in property taxes,
one-time funds received in
FY 2009-10 from the sales of
property and a decrease in
interdepartmental charges
resulting from the Citywide
redesign. Although the City
experienced revenue growth between 9% and 17% in the late 1990's, it was not sustainable
growth. Much of those increases were due to the opening of new hotels, restaurants, retail
centers, and new home development. As the City matures, it will be increasingly more difficult
to produce double-digit growth in revenues. With the current economic slowdown, limited
growth is anticipated over the next two to three years with the City returning to 4% to 7% growth
rates in the future.
$ Millions
140
120
100
80
60
40
20
0
FY2006 FY2007 FY 2008 FY
2009a
FY
2009r
FY
2010e
FY2011
Other Funds
Revenues from Special Revenue funds are expected to total $10.9 million in FY 2010-11, a
$1.9 million decrease from FY 2009-10. The types of programs supported within Special
Revenue funds are those funded by specific revenue streams such as:
• Grants (Rental Assistance-Section 8, Community Development Block Grants, COPS Grant)
• Special fees and assessments (Affordable Housing, Maintenance Assessment Districts)
• Donations (Library, Cultural Arts, Recreation and Senior Donations)
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
SPECIAL REVENUE FUNDS
2010-11 PROJECTED REVENUES
Maintenance Districts
24%
^^^^^^^^^^^^^^^^^ .Rental Assistance
CDBG__ ^ , ilBiS9^^^^B^^~ 60%
6%
Affordable Housing.
The most noteworthy change in the Special Revenue funds occurred in the Street Lighting
Fund. Estimated revenues decreased approximately $2.5 million from FY 2009-10. During FY
2009-10, the City received approximately $1 million in Energy Efficiency and Conservation
Block Grant funds from the federal government and anticipates receiving an additional $1.5
million in American Recovery and Reinvestment Act funds from the California Energy
Commission. These revenues are one-time grant monies which are being used towards the
City's street light retrofit project. The street light retrofit project will replace the City's high-
pressure sodium vapor lights with induction lights.
Enterprise fund revenues for FY 2010-11 are projected at $52.2 million, an increase of $5.2
million or 11.1% over current year projections. The increase in revenues is primarily due to the
proposed rate increases for Water and Wastewater funds. Enterprise funds are similar to a
business, in that rates are charged to support the operations that supply the service. Carlsbad
Enterprise funds include water and recycled water delivery, wastewater services, and solid
waste management.
The Water Enterprise Fund revenue is estimated at $38.4 million, an increase of $4.2 million, or
12.2% over the current year estimate. Of that increase, $3.3 million will be from water sales
reflecting proposed increased rates to pay for the rising cost of water purchases. The proposed
rate increases have not yet been approved by the Board of Directors of the Carlsbad Municipal
Water District; staff will be requesting that a Public Hearing date be scheduled at a future date in
order to consider the proposed rate increases. Anticipated increases paid to the San Diego
County Water Authority include a 9% increase to the wholesale purchase cost of water (from
$814 to $887 per acre foot), and an 18% increase in the fixed charges for water purchases
(from $3.6 million to $4.3 million). In addition to paying for the wholesale and fixed water costs,
the FY 2010-11 Operating Budget includes funding for replacement of Carlsbad's infrastructure,
ongoing meter replacements, and providing a sufficient operating reserve.
Wastewater estimated revenues are $10.3 million, $931,000 over the current year estimate. Of
that increase, $671,500 million will be sewer service charges, reflecting proposed increased
rates to fund the ongoing cost of operations, maintenance, and funding for replacement of
infrastructure, as well as providing a sufficient operating reserve. The rate increases have not
yet been approved by the City Council; staff will be requesting that a Public Hearing date be
scheduled at a future date in order to consider the proposed rate increases.
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
In addition to the water and wastewater recommended rate increases, included in the Solid
Waste revenues is a proposed a 3.3% increase to the base rate of the Solid Waste Fee. This
would raise the total Solid Waste rate for a single family residence by $.50 per month, or 2.65%.
The increased revenue generated by the rate increase would be retained by Coast Waste
Management as an increase to their fee for providing waste management services. The last
time Coast Waste received an increase was in Fiscal Year 2006. This rate increase has not yet
been approved by the City Council; staff will be requesting that a Public Hearing date be
scheduled at a future date in order to consider the proposed rate increases.
Internal Service funds show estimated revenues of $16.3 million for FY 2010-11, an increase
of 9.4%, or $1.4 million, from FY 2009-10 projections. Internal Service funds provide services
within the City itself, and include programs such as the self-insurance funds for Workers'
Compensation and Liability (Risk Management), as well as Vehicle Maintenance and
Replacement. Departments pay for services provided by these funds; therefore, the rates
charged for the services are based on the cost to provide the service. The goal of the Internal
Service funds is to match their budgeted expenses with charges to the departments, after
allowing for a certain level of reserves within the fund.
The more significant increases occurred in Information Technology, Vehicle Maintenance and
Vehicle Replacement. In Information Technology, the Geographic Information System
Department was merged with Information Technology which added almost $600,000 to the
Information Technology budget which is now being charged out in the interdepartmental
charges. In the Vehicle Maintenance Fund, the increase is mainly due to the increased costs of
vehicle maintenance as well as the cost of fuel. For the Vehicle Replacement Fund, the
increase reflects additional allocations to ensure sufficient revenues are available to replace
equipment at the end of its useful life. More discussion on the costs can be found in the
Expenditures section of this report.
Redevelopment revenues are expected to total $3.4 million in the upcoming year, a decrease
of 2.9%, or $155,000, from the projections from the previous year. This decrease is the result of
an estimated 2.4% decrease in property tax increment revenues collected for the Village.
The City has a General Fund reserve policy that sets a minimum reserve of 30% of the
General Fund Operating Expenditures. In addition, the policy sets a target reserve of 40% to
50% of General Fund Operating Expenditures. The minimum reserve would provide
approximately three to four months of operating expenditures for unforeseen emergencies. At
the end of FY 2008-09, the undesignated and unreserved General Fund balance was
approximately $48.3 million. At the end of FY 2009-10 the reserve is projected to be
approximately $49.6 million, or 45% of the FY 2009-10 Budget. The reserve amount is
consistent with Council Policy 74: General Fund Reserve Guidelines.
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
EXPENDITURES
The City's Preliminary Operating Budget for FY 2010-11 totals $189.1 million,
which represents a decrease of about $2.0 million, or 1.1%, as compared to
the adopted FY 2009-10 Budget. The changes in each of the City's
programs will be discussed below.
Budgetary Policies
The theme behind this year's budget development was to incorporate a new organizational
structure while maintaining a long-term plan for a balanced budget, given the continued
economic uncertainty. As the City transitions from a growing and developing city to a built-out
city, a new organization design needed to be developed to allow resources to be aligned with
the community's future needs. During FY 2009-10, a year-long effort evaluated how the City
was currently delivering services to residents and businesses and identified where opportunities
existed to streamline for the future while continuing to provide high quality services. Key areas
of focus included those most affected by the City's increasing maturity, such as traffic and
transportation, economic and community development, environmental management and
infrastructure maintenance and replacement. Based on these efforts, the City realigned the
organizational structure to better serve the changing needs of the community, as well as to
allow for increased efficiencies with fewer resources. The FY 2010-11 Preliminary Operating
Budget was developed using the new department configuration. For comparison purposes,
historical data for departments was restated to reflect the new structure, where applicable.
Responsible management of the City's resources includes maintaining a focus on a sustainable
future by ensuring the City remains in good financial health. Considering that today's decisions
will impact future spending levels, and given the uncertainty of the economy, the following
policies were set for FY 2010-11:
• Continue to minimize service level impacts to our citizens.
• No new positions and no growth in maintenance and operations for FY 2010-11.
• No new programs will be considered unless required under a legal mandate.
• Absorb negotiated personnel contract increases where possible.
• Generally, be prudent in budgeting. Consider cost containment measures and budget
discretionary items at minimum levels.
The City uses an "Expenditure Control Budget" (ECB) process in budgeting, where each
department is given a block appropriation containing sufficient funds to provide the current level
of services for the upcoming year. Typically, each year the block is increased by an index for
growth and inflation. However, in both FY 2008-09 and FY 2009-10, as a result of the economic
recession, block budgets were decreased in response to decreased revenues. Focus shifted
from growth and moved to maintaining core city services and finding efficiencies in operations,
allowing for lower budget levels. By planning ahead, Carlsbad was able to make those
changes early, avoiding major changes for FY 2010-11. For FY 2010-11 departments absorbed
inflationary increases where possible, and overall operations costs remained at the FY 2009-10
levels, anticipating a flat economy in the coming year.
Due to the City's reorganization efforts previously mentioned, block budgets were reallocated
among various departments, based on the personnel and tasks assigned to each of the new
and continuing departments. No increases to the overall block resulted from the realignment
and no additional appropriations are expected during the year, except in the case of a significant
15
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
unanticipated event. Amounts that are unspent at the end of the fiscal year will be carried
forward to the new fiscal year. At the end of FY 2009-10, the amounts carried forward by each
department will be capped at no more than 10% of the previous year's adopted budget.
Budgeted Expenditures
Through the application of these guidelines and policies, the FY 2010-11 Preliminary Operating
Budget of $189.1 million was developed.
Position Changes
A decrease of 13.75 full-time and 3.5 limited-term positions, representing a total decrease of
17.25 positions, is reflected in the FY 2010-11 Preliminary Operating Budget, as compared to
the FY 2009-10 Adopted Budget. The total decrease includes the elimination of 12.25 positions
identified through the City's realignment efforts, as well as the elimination of 5 positions that had
previously been unfunded.
The FY 2010-11 Operating Budget includes the elimination of the following 13.75 full-time
positions:
2.0 Administrative Secretaries 1.0 Management Analyst
1.0 Assistant Planning Director 1.0 Public Works Manager
1.0 Custodian 1.0 Recreation Specialist
1.0 Deputy City Engineer 1.0 Secretary
1.0 Deputy Public Works Director 1.0 Senior Management Analyst
0.75 Librarian II 2.0 Utility Workers
In addition, the following 3.5 limited term positions have expired and will be eliminated: 2.0
Building Inspectors, 1.0 Associate Planner, and a 0.5 GIS Intern position.
In addition to the eliminated positions mentioned above, there are 6 other positions that are
projected to remain unfunded for FY 2010-11. The unfunded positions provide an opportunity
for departments to realize salary savings while still maintaining a count for the vacant position,
which could be budgeted again in a future year once the economy improves.
The net increase in hourly staff totaled 0.5. This increase was due to an hourly maintenance
worker being hired to provide a partial replacement for one of the full-time positions eliminated
above.
These changes result in a City workforce of 699.0 full and three-quarter time employees, no
limited term employees, and 138.94 hourly, full-time equivalent positions. As mentioned above,
six of the full-time positions are not funded in the FY 2010-11 Budget.
New Facilities
The City has a number of major capital projects scheduled to be built over the next five years.
As the City completes these projects, the costs of maintaining and operating the facilities,
including additional personnel if necessary, are added to the Operating Budget. The Carrillo
Ranch Barn Restoration project is scheduled for completion in the Spring of 2011. Additional
funds for maintaining this facility will be incorporated in the FY 2011-12 Budget.
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
Budget by Fund Type
The table below shows the changes in the Operating Budget for FY 2010-11 compared to the
Adopted Budget for FY 2009-10.
BUDGET EXPENDITURE SUMMARY
BY FUND TYPE
(In Millions)
FUND
GENERAL FUND
SPECIAL REVENUE
ENTERPRISE
INTERNAL SERVICE
REDEVELOPMENT
TOTAL
BUDGET
2009-10
$ 109.1
10.5
54.6
15.1
1.8
$ 191.1
BUDGET
2010-11
$ 110.2
10.9
51.6
14.3
2.1
$ 189.1
$
CHANGE
$ 1.1
0.4
(3.0)
(0.8)
0.3
$ (2.0)
%
CHANGE
1.0%
3.8%
-5.5%
-5.3%
16.7%
-1.1%
The General Fund contains most of the discretionary revenues that support the basic core City
services. However, this should not diminish the importance of the other operating funds, as
they also contribute to the array of services available within Carlsbad. The remainder of this
section will provide more information about the budgeted expenditures by fund and program.
GENERAL FUND SUMMARY
BY EXPENDITURE TYPE
(In Millions)
PERSONNEL
M & O
CAPITAL OUTLAY
TRANSFERS
TOTAL
BUDGET
2009-10
$ 74.5
27.9
-
6.7
$ 109.1
BUDGET
2010-11
$ 73.3
29.3
-
7.6
$ 110.2
$
CHANGE
$ (1.2)
1.4
-
0.9
$ 1.1
%
CHANGE
-1.6%
5.0%
0.0%
13.4%
1.0%
General Fund
The total budget for the General Fund for FY 2010-11 is $110.2 million, which is 1.0% greater
than the previous year's adopted budget of $109.1 million. Net decreases in personnel partially
offset net increases in maintenance and operations costs. Increases in transfers out from the
General Fund to other City funds increased by $0.9 million, or 13.4%, which accounts for the
remaining increase in the General Fund, as can be seen in the table above.
Personnel costs make up approximately 66% of the General Fund budget so any changes in
these costs can have a significant effect on the total budget. The total personnel budget for FY
2010-11 is $73.3 million, which is $1.2 million, or 1.6%, less than the previous year's personnel
budget of $74.5 million. The decrease was due to several factors, as discussed on the following
page.
11
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
GENERAL FUND
PERSONNEL COSTS
(In Millions)
SALARIES
HEALTH INSURANCE
RETIREMENT
WORKERS COMP
OTHER PERSONNEL
TOTAL
BUDGET
2009-10
$ 50.9
6.4
14.9
1.2
1.1
$ 74.5
BUDGET
2010-11
$ 50.4
6.1
14.5
1.2
1.1
$ 73.3
$
CHANGE
$ (0.5)
(0.3)
(0.4)
0.0
0.0
$ (1-2)
%
CHANGE
-1.0%
4.7%
-2.7%
0.0%
0.0%
-1.6%
The table above shows the breakdown of personnel costs for the General Fund. Salaries
include full and part-time staff costs. Overall, total personnel and benefits costs are projected
to decrease for FY 2010-11 as compared to FY 2009-10, as discussed below. While health
Insurance rates are projected to increase by 5%, and retirement rates are projected to remain
flat, both these line are projected to have an overall decrease in FY 2010-11, due to the overall
personnel decreases discussed below. Workers' Compensation and miscellaneous other
personnel costs are projected to remain flat for FY 2010-11.
Overall, total personnel costs are projected to decrease by $1.2 million, or 1.6%, for a
combination of reasons. Eliminating full-time positions and other salary savings related to the
City's realignment efforts, resulted in approximately $1.2 million of savings in personnel costs. In
anticipation of these personnel changes, $800,000 of these savings had already been
incorporated into the FY 2009-10 adopted budget, so approximately $400,000 was realized as
reduced personnel costs in FY 2010-11. The transfer of Geographic Information Systems (GIS)
personnel out of the General Fund resulted in an additional reduction of $500,000 in total
personnel costs. This reduction will be offset by increases in maintenance and operations costs
charged to departments, as GIS services will now be allocated out through the internal service
fund charges. Additionally, the transfer of approximately $1.0 million in personnel costs to Non-
General Fund departments, as part of the City's realignment efforts, also reduced overall
personnel costs to the General Fund. This reduction will be offset by corresponding increases
in Maintenance & Operation costs due to chargeback reductions as well as by decreases in
interdepartmental revenues. These total reductions are somewhat offset by the increases in
salaries budgeted to occur in FY 2010-11, mainly due to previously negotiated labor contracts,
netting to the overall decrease of $1.2 million in total personnel costs.
Public safety employee contract negotiations were underway, but not yet complete, at the time
the Preliminary Budget was prepared. Any actions resulting from the negotiations currently
underway are not included in the Preliminary Budget, but will be incorporated as part of the
Final Budget once decisions are reached.
Maintenance & Operations costs (or M&O) include the budgets for all program expenses other
than personnel or capital outlay, and represent about 27% of the overall General Fund budget.
Overall, maintenance and operations costs are projected to increase by about $1.4 million, or
5%, mainly due to offsetting personnel decreases. The transfer of GIS personnel out of the
General Fund resulted in about $600,000 in increases in maintenance and operations costs
charged to departments, largely offset by $500,000 in decreases in personnel costs, as noted
above. Additionally, the transfer out of personnel and M&O costs to Non-General Fund
departments, as part of the City's realignment efforts, resulted in about $800,000 in
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
corresponding increases in M&O costs due to chargeback reductions. Finally, M&O costs were
reduced in some departments in order to absorb personnel increases, when needed. These
reductions were offset by miscellaneous increases that could not be absorbed without service
level impacts. Maintenance and Operations costs are discussed more fully by program, later in
the report.
Capital Outlay includes budgeted equipment purchases over $1,000. There are no major
capital outlay purchases planned in the General Fund for FY 2010-11.
Transfers are amounts anticipated to be transferred from the General Fund to another City
fund. The transfers included in this year's proposed budget are to the following funds:
• $7.2 million to the Infrastructure Replacement Fund - for major maintenance and
replacement of City infrastructure. This represents 6.5% of the General Fund Revenues,
an increase from the 6.0% transfer in FY 2009-10.
• $207,000 to the Storm Water Program for reimbursement for the General Fund portion
of Storm Water expenses.
• $253,850 to the Median Maintenance Special Revenue Fund to cover a cash shortfall,
as annual assessments collected from property owners do not cover operating
expenditures.
Advances are amounts anticipated to be transferred from the General Fund to another City fund
and are expected to be repaid to the General Fund in future years. The advances included in
this year's proposed budget are to the following funds:
• $1.7 million to the Golf Course for operations - The Golf Course is a relatively new
facility and there is only a short history to support the budget development. The Golf
Course's budget and financials are on a calendar year basis. The Carlsbad Public
Financing Authority approved the 2010 Golf Course Budget including an advance of
$1,761,000 million from the General Fund.
• $85,000 to the South Carlsbad Coastal Redevelopment Area (SCCRDA) - The
SCCRDA is not projecting to generate tax increment for FY 2010-11. However, there
are activities that need to be performed to help generate tax increment producing
projects within the area, such as the Ponto Development and the proposed new
desalination project. Once more development occurs in this area, it is anticipated that
the SCCRDA will be able to repay the General Fund advances.
Repayments are also included in the FY 2010-11 General Fund budget. The General Fund has
advanced money to several funds. A portion of those advances are being repaid as follows:
• $136,000 is being repaid from the Storm Water Fund for a loan made from the General
Fund to help establish this fund.
Another way of looking at the General Fund budget is by program. The chart on the following
page compares the total FY 2010-11 Budget to the amounts adopted in the previous year. The
significant changes are noted below the chart.
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
GENERAL FUND EXPENDITURES
BY DEPARTMENT
(In Millions)
FUND
POLICY/LEADERSHIP
COMMUNITY & ECONOMIC DEV
FINANCE
FIRE
HOUSING & NGHBRHD SRVCS
HUMAN RESOURCES
LIBRARY & ARTS
PARKS AND RECREATION
POLICE
PROPERTY & ENVIRO MGT
TRANSPORTATION
UTILITIES
NON-DEPARTMENTAL
TOTAL
BUDGET
2009-10
$ 5.2
8.2
3.3
16.8
0.4
2.4
10.1
12.5
27.7
4.9
9.8
0.3
7.5
$ 109.1
BUDGET
2010-11
$ 5.3
7.4
3.3
16.9
0.4
2.4
10.4
12.4
28.3
4.8
9.1
0.3
9.2
$ 110.2
$
CHANGE
$ 0.1
(0.8)
0.0
0.1
0.0
0.0
0.3
(0.1)
0.6
(0.1)
(0.7)
0.0
1.7
$ 1.1
%
CHANGE
1.9%
-9.8%
0.0%
0.6%
0.0%
0.0%
3.0%
-0.8%
2.2%
-2.0%
-7.1%
0.0%
22.7%
1.0%
The Policy/Leadership Group includes all elected officials, the City Manager's Office,
the City Attorney's Office, and Communications and Records Management functions.
The $100,000, or 1.9%, increase for FY 2010-11 is primarily due to a projected increase
in the City Clerk's office for increased expenses related to the November 2010 election.
The Community and Economic Development Department was created from the
former Community Development Department and includes economic development,
planning, development services, building and code enforcement, and the addition of land
use engineering. Of the $800,000, or 9.8%, decrease from FY 2009-10 to FY 2010-11,
$300,000 is attributable to eliminating two positions. An additional $500,000 net
decrease is due to the transfer of $500,000 in CIS services out of the General Fund, to
the Information Technology group. The transfer results in decreased personnel costs in
the General Fund. However, since GIS costs will now be allocated to departments as
part of the Information Technology Internal Service Fund charges, M&O increases to
departments will occur as a result of the transfer.
The Finance Department continues to provide the day-to-day accounting, financial
reporting, collections, fiscal oversight, and long-term financial planning for the City. The
department's budget remained relatively flat from FY 2009-10 to FY 2010-11.
The Carlsbad Fire Department continues as one of the cornerstones of the City's public
safety efforts, which remains a City Council priority. Services include emergency
operations, emergency preparedness, and fire prevention. The $100,000, or 0.6%,
increase for FY 2010-11 reflects additions made to fund previously contracted personnel
increases. Also, due to deep overtime budget reductions made in prior years,
approximately $150,000 was added back to the department's budget to meet required
staffing levels on a 24/7 basis, in order to provide full emergency response coverage.
Public Safety employee contract negotiations were underway, but not yet complete, at
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
the time the Preliminary Budget was prepared. Any actions resulting from the
negotiations currently underway are not included in the Preliminary Budget, but will be
incorporated as part of the Final Budget once decisions are reached.
• In the General Fund, the Housing and Neighborhood Services Department includes
the City's neighborhood services, hiring center and volunteer programs. No change is
expected for FY 2010-11 as compared to the FY 2009-10 Budget allocation.
• The Human Resources Department continues to support the City's full-time and part-
time staff by providing services such as staffing and recruitment, employee
development, performance management and compensation, and labor relations. The
department's budget will remain flat from FY 2009-10 to FY 2010-11.
. The Library and Arts Department provides staffing and a wide variety of programming
for two library branches, a library learning center, and a cultural arts office. The
$300,000, or 3%, increase for FY 2010-11 is primarily due to an increase in Internal
Service Fund charges, mainly related to GIS services being allocated to departments
beginning in FY 2010-11.
• The Parks and Recreation Department continues to
plan, staff and maintain the City's parks and recreational
facilities, as well as provide an assortment of
recreational programs for all ages. In addition, new
duties will mean increased responsibilities in managing
open space areas. The department's budget
decreased by $100,000, or 0.8%, mainly as a result of a
position elimination and a decrease in projected vehicle
maintenance and replacement costs. These were offset
slightly by additions made to fund previously contracted
personnel increases, as well as a slight increase in M&O costs to provide funding for
efforts made on the Urban Forest Management Plan.
. The Carlsbad Police Department continues to provide high quality service to the
community to ensure the preservation of life and property, and the maintenance of law
and order. The Preliminary Operating Budget shows the department's costs increasing
by $600,000, or 2.2%, for FY 2010-11 as compared to FY 2009-10. This increase is
partially due to additions made to fund previously contracted personnel increases and
partially due to an increase in Internal Service Fund charges, including increased vehicle
and equipment replacement costs, an increase in projected vehicle maintenance costs,
and an allocation of GIS services. Public Safety employee contract negotiations were
underway, but not yet complete, at the time the Preliminary Budget was prepared. Any
actions resulting from the negotiations currently underway are not included in the
Preliminary Budget, but will be incorporated as part of the Final Budget once decisions
are reached.
• The Property and Environmental Management Department includes managing all
City owned property, including real estate, buildings and vehicles. The department also
manages the City's environmental programs, which include storm water, habitat and
other environmental maintenance and monitoring programs. The $100,000, or 2.0%,
decrease for FY 2010-11 as compared to the FY 2009-10 budget allocation, is mainly
due to the elimination of 1.35 positions, offset by an increase for a preserve steward
contract related to the City's Habitat Management Program.
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
• The Transportation Department, previously part of the larger Public Works
Department, manages all streets, traffic and other transportation services. The
department shows an overall decrease of $700,000, or 7.1%. The decrease reflects the
elimination of 2.95 positions previously part of the Public Works Department, as well as
the transfer of some personnel, maintenance and operations, and Internal Service Fund
costs to Non-General Fund departments, as part of the City's realignment efforts.
• The Utilities Department in the General Fund consists of Storm Drain Maintenance
activities. No change is expected from FY 2010-11 as compared to the FY 2009-10
budget allocation.
• Non-departmental expenses include the transfers previously discussed as well as
administrative and other expenses not associated with any one department. The
increase of $1.7 million, or 22.7%, is attributed to $800,000 in personnel savings
reflected in FY 2009-10 being spread to individual departments for FY 2010-11, and a
$900,000 increase in anticipated transfers from the General Fund to other City funds.
The Council Contingency account is available to the City Council for unanticipated
emergencies or unforeseen program needs during the year. It is budgeted at $500,000
for FY 2010-11, which is equal to the amount budgeted for this item in FY 2009-10. The
budgeted amount represents less than 1% of the FY 2010-11 General Fund Budget.
General Fund Expenditure History
$ Millions . +3% -0.3%
120 - +11.9% -*•
"" " " " "~ijjlm
115 -. "T
110 :^j
' +11.4 ,',\.
105 -: « f,;
1 ***4?100 - ,. ;| ttjv • »* ,
95 - ''"I SI $*J
90 r " ^
fc *
m •
Al
4 I
^ "lj ^^ Vlj
*ff
* n
•*»?^
') "^
"
*m
f*
>£
•"f:
/A?
"'i^i*Sf»i
'I^'ft
M'* >f
-T
-4.8% "•" " '
•™^S
'' -t
'*",'•
\ ,1
.'"•?
' ' '^viI
-3.3%
4VM
i.
"" &4^
& fc* '
s£/^
-fSj
;J!J
0 i*-!
, „ ^r
*—
,' • >
'"./i
VI
*;*';
FY2006 FY2007 FY 2008 FY FY FY FY2011
2009a 2009r 2010e
As reflected in the chart
to the left, the City began
to slow its expenditure
growth in FY 2007-08 in
anticipation of the
economic slowdown.
The chart shows the
4.8% mid-year reduction
in January 2009 and a
further 3.3% reduction in
FY 2009-10 to further
reduce expenditures to
keep in line with General
Fund Revenue declines.
FY 2010-11 expenditure projections remain relatively flat in anticipation of a flat economy in the
coming year.
Changes in Other Funds
Special Revenue funds, at $10.9 million, are up $400,000, or 3.8%, from the prior year. This
increase is mainly due to an increase in proposed spending for the City's Local Cable
Infrastructure Fund due to planned expansion of the City's public access video and
communications technologies for FY 2010-11.
Enterprise funds total $51.6 million, which is a decrease of $3.0 million, or 5.5% under the FY
2009-10 adopted budget. The most significant change is in Water Operations due to reduced
anticipated expenditures for water purchases. Carlsbad residents have been conserving water
and actual water purchases and water sales have come in significantly lower than previously
anticipated; water sales in Fiscal Year 2010 will be approximately 15% lower than the prior year.
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
Despite the increase in the cost of water purchased from the San Diego County Water Authority
(18% increase in fixed costs and 9% average increase in variable costs for the fiscal year), the
total amount budgeted has decreased due to the lower anticipated sales volume. The decrease
in water purchases is largely offset by decreases in sales revenue.
Wastewater operations are projected to increase 3.4%, or $300,000, over the adopted budget
for FY 2009-10. The operating budget includes additional funding for Encina Wastewater
services and depreciation replacement transfers related to growth in the wastewater
infrastructure system.
The Internal Service funds total $14.3 million, and are reduced $800,000, or 5.3% from the
prior year. The Internal Service funds are self-supporting through user charges. Changes
occurred in a number of these funds:
• The Self Insured Benefits budget shows a decrease of approximately $90,000 based
on a decreases in health related expenses paid from the fund.
• The Vehicle Maintenance Fund budget has decreased by approximately $80,000 in FY
2010-11. This reflects reductions in the budgets for parts and outside vehicle
maintenance expenses.
• The Vehicle Replacement Fund budget varies from year to year depending on the
vehicles to be replaced. The budget for the fund is $264,000 less than the previous
year, or a 16.8% decrease. A list of the requested vehicles can be found at the end of
this document.
• The Information Technology Fund shows a decrease in the department's budget of
approximately $400,000, or 5.8%. The budget decreased by about $600,000 due to a
decrease in major capital outlay and by about $300,000 due to decreases in one-time
technology investments. These decreases were partially offset by the transfer of GIS
costs from the General Fund, which increased the budget by approximately $500,000.
The Redevelopment Agency budgets have increased about $300,000 from the previous year,
mainly due to a mandated payment to the state of approximately $277,000 projected for FY
2010-11, due to the state's budget crisis.
SUMMARY
This Preliminary Operating Budget for FY 2010-11 emphasizes maintenance and operation of
the City's current infrastructure and maintaining core City services at their current levels. Being
conscious of the economic slowdown, no new programs or expanded levels of service are
included in the budget. The ten-year financial forecast is of concern since there are several
years reflecting deficits and other years reflecting lower projected surpluses than in previous
years' forecasts. Revenues and expenditures will continue to need close monitoring. The City
may need to further reduce expenditures in the following three years if the assumptions made
regarding the recession's recovery prove inaccurate to ensure we live within our means through
these turbulent and uncertain economic times. The ten-year financial forecast is a useful tool to
help manage our way through the economic uncertainty.
The City of Carlsbad has a diverse revenue base and is in a good economic position; however,
Carlsbad is not immune to the economy. The planning and foresight by the City Council and
residents have provided a sound economic base for the City. Fiscal conservatism, which has
consistently been the City's overall approach to managing its finances, is even more important
during these economically uncertain times.
2010-11 PRELIMINARY OPERATING BUDGET OVERVIEW
The City recently completed a citywide redesign in order to adapt to the transition from a
growing and developing city to a built-out city. The new organization structure is designed to
better serve the changing needs of the community, as well as to allow for increased efficiencies
with fewer resources, while continuing to provide high quality services. The FY 2010-11
Preliminary Operating Budget was developed using the new department configuration.
The Carlsbad City Council's annual goal setting process this year focused on supporting an
excellent quality of life as the City transitions from a period of growth to a new era focusing on
economic, environmental and community sustainability. Maintaining core city services at their
current levels was the top priority in developing the budget for the coming fiscal year. Other
priorities focus on supporting the important values identified through Envision Carlsbad, a City-
sponsored program to create a community vision for Carlsbad's future.
CITY OF CARLSBAD
OPERATING FUNDS
PROJECTED FUND BALANCES
Exhibit 2
FUND
GENERAL FUND
REPAYMENT FROM SOLID WASTE
ADVANCE TO GOLF COURSE FUND
ADVANCE TO MEDIAN MAINTENANCE
ADVANCE TO SCCRDA
ADVANCE TO VILLAGE RDA
REPAYMENT FROM VILLAGE RDA
TRANSFER TO IT (NON-DEPT CONTINGENCY)
CHANGE IN RESERVATIONS & DESIGNATIONS
TOTAL GENERAL FUND
SPECIAL REVENUE
AFFORDABLE HOUSING
BUENA VISTA CHANNEL MAINTENANCE
CITIZEN'S OPTION FOR PUBLIC SAFETY
COMMUNITY ACTIVITY GRANTS
COMMUNITY DEVELOPMENT BLOCK GRANT
CULTURAL ARTS DONATIONS
LIBRARY AND ARTS ENDOWMENT FUND
LIBRARY GIFTS/BEQUESTS
LIGHTING AND LANDSCAPING DISTRICT NO. 2
LOCAL CABLE INFRASTRUCTURE FUND
MEDIAN MAINTENANCE
POLICE ASSET FORFEITURE
POLICE GRANTS
PUBLIC ART
RECREATION DONATIONS
RENTAL ASSISTANCE
SENIOR DONATIONS
STREET LIGHTING
STREET TREE MAINTENANCE
TOTAL SPECIAL REVENUE
ENTERPRISE
WATER OPERATIONS
RECYCLED WATER OPERATIONS
WASTEWATER OPERATIONS
SOLID WASTE MANAGEMENT
TOTAL ENTERPRISE
INTERNAL SERVICE
WORKERS' COMPENSATION
RISK MANAGEMENT
SELF-INSURED BENEFITS
VEHICLE MAINTENANCE
VEHICLE REPLACEMENT
INFORMATION TECHNOLOGY
TOTAL INTERNAL SERVICE
REDEVELOPMENT
VILLAGE OPERATIONS / DEBT SERVICE
VILLAGE LOW/MOD INCOME HOUSING
SCCRDA OPERATIONS/ DEBT SERVICE
SCCRDA LOW/MOD INCOME HOUSING
TOTAL REDEVELOPMENT
TOTAL OPERATING FUNDS
UNRESERVED
BALANCE
JULY 1, 2009
| $47,816,416 '
0
0
0
0
0
0
488,188
0
48,304,604
H\
12,872,395
1,255,640
8.786
1,063,961
33,448
225,154
269,845
115,071
717,822
260,681
380,708
697,508
2,203
187,179
166.358
1,787,580
189,528
696,538
382,683
21,313,088
in
(4,225.849)
6.668,638
(1,087.071)
8,697,655
9,953,373
ID
2,496,262
195,109
1,258,397
425,852
10,992,147
3,790,655
19,158,422
m
5,005,435
5,684.266
44.050
333,902
11,067,653
$109,797.140
PROJECTED
REVENUES
$114,836,000
0
0
0
0
0
0
0
0
114,836,000
632,000
133.446
165,000
9,000
635,500
41,600
2,200
119.600
479,352
328.500
367,904
143,600
174,300
1,600
36,500
5.659,249
21.700
3.401.020
475,851
12,827,922
27,565,600
6,626,413
9.381,000
3,459,618
47,032,631
1,413,210
1,588,155
973,932
2,712,286
2,285,293
5,871,804
14,844,680
2,766.000
760,000
11,000
8,000
3,545,000
$193,086,233
PROJECTED
EXPENDITURES
$111.297.765
0
0
0
0
0
0
0
0
111,297,765
418,481
201.152
165,000
40,000
291,000
95,863
13,899
220,626
224,286
97,286
849,466
69,419
176,503
12,060
30,222
6,168,267
26,443
3,595.762
634,598
13,330,333
29,306,071
6.469,698
10,335,711
2,785,338
48,896,818
1,602,289
1,264.285
1,053,605
2,625,195
1.160,862
7,367,658
15,073,694
7,488,150
80,158
399,820
32.934
8,001,062
$196,599,672
ADVANCES
&FUND
TRANSFERS
136,000
(1,850,000)
(166,500)
(454,000)
(1,860,000)
500,000
(488.188)
166.500
(136,000)
488.188
1,360,000
454,000
($1,850,000)
PROJECTED
OTHER BALANCE
CHANGES JUNE 30, 2010
$51,354,651
136,000
(1,850,000)
(166,500)
(454,000)
(1.860,000)
500.000
0
1.983,431 1,983,431
49,643,582
13,085,914
1,187,934
8,786
1,032,961
377,948
170,891
258,146
14,045
972,888
491.895
65,646
771,689
0
176,719
172,636
1,278,562
184,785
501.796
223,936
20.977,177
(5,966,320)
6.825,353
(2,041,782)
9,135,935
7,953,186
2,307.183
518,979
1,178,724
512.943
12,116,778
2.782.989
19,417,596
1,643,285
6,364,108
109,230
308,968
8,425,591
$1,983,431 $106,417,132
• FOR THE GENERAL FUND ONLY THIS REPRESENTS UNDESIGNATED. UNRESERVED FUND BALANCE.
CITY OF CARLSBAD
OPERATING FUNDS
PROJECTED FUND BALANCES
FUND
GENERAL FUND
REPAYMENT FROM SOLID WASTE
ADVANCE TO GOLF COURSE FUND
ADVANCE TO MEDIAN MAINTENANCE
ADVANCE TO SCCRDA
ADVANCE TO VILLAGE ROA
REPAYMENT FROM VILLAGE RDA
TRANSFER TO IT (NON-DEPT CONTINGENCY)
CHANGE IN RESERVATIONS & DESIGNATIONS
TOTAL GENERAL FUND
SPECIAL REVENUE
AFFORDABLE HOUSING
BUENA VISTA CHANNEL MAINTENANCE
CITIZEN'S OPTION FOR PUBLIC SAFETY
COMMUNITY ACTIVITY GRANTS
COMMUNITY DEVELOPMENT BLOCK GRANT
CULTURAL ARTS DONATIONS
LIBRARY AND ARTS ENDOWMENT FUND
LIBRARY GIFTS/BEQUESTS
LIGHTING AND LANDSCAPING DISTRICT NO. 2
LOCAL CABLE INFRASTRUCTURE FUND
MEDIAN MAINTENANCE
POLICE ASSET FORFEITURE
POLICE GRANTS
PUBLIC ART
RECREATION DONATIONS
RENTAL ASSISTANCE
SENIOR DONATIONS
STREET LIGHTING
STREET TREE MAINTENANCE
TOTAL SPECIAL REVENUE
ENTERPRISE
WATER OPERATIONS
RECYCLED WATER OPERATIONS
WASTEWATER OPERATIONS
SOLID WASTE MANAGEMENT
TOTAL ENTERPRISE
INTERNAL SERVICE
WORKERS' COMPENSATION
RISK MANAGEMENT
SELF-INSURED BENEFITS
VEHICLE MAINTENANCE
VEHICLE REPLACEMENT
INFORMATION TECHNOLOGY
TOTAL INTERNAL SERVICE
REDEVELOPMENT
VILLAGE OPERATIONS / DEBT SERVICE
VILLAGE LOW/MOD INCOME HOUSING
SCCRDA OPERATIONS / DEBT SERVICE
SCCRDA LOW/MOD INCOME HOUSING
TOTAL REDEVELOPMENT
TOTAL OPERATING FUNDS
PROJECTED
BALANCE
JULY 1, 2010
$49,643,582 •
49,643,582
13,085.914
1,187,934
8.786
1.032.961
377.948
170,891
258,146
14.045
972.888
491,895
65,646
771,689
0
176,719
172,636
1,278,562
184.785
501.796
223,936
20.977,177
(5.966,320)
6,825,353
(2.041,782)
9.135,935
7,953.186
2.307,183
518.979
1.178,724
512,943
12.116.778
2,782.989
19.417,596
1.643.285
6,364.108
109,230
308,968
8,425,591
$106.417,132
ESTIMATED
REVENUES
$110,387,000
110,387,000
432,000
123.800
112.925
20,000
664.419
51,000
6,400
500
452,730
348,000
614,858
68.000
0
4.000
39.700
6,579,000
35,000
914,595
469.677
10,936.604
31,143,265
7,229,969
10,311,568
3,493,601
52,178,403
1,470,091
1,583,720
1,026,216
3.200,967
2.468,564
6,593,146
16,342,704
2,627,000
747,000
8.000
8,000
3,390,000
$193,234,711
ADVANCES
ADOPTED & FUND OTHER
BUDGET TRANSFERS CHANGES
$110,240,000
136,000
(1,700,000)
(85,000)
110,240,000
500,577
103,540
112,925
40.000
663.954
91,350
6,400
0
197.153
368,960
680,504
16,530
0
22,900
42,131
6,578,677
40,990
861.248
612,295
10,940.134
30,937,259
6,889,719
10,527,823
3,201,504 (136,000)
51,556,305
1,841.504
1,467,171
951,560
2,795,426
1,310,000
5.900.575
14,266,236
1,774,404
101.331
201.379 85.000
60.410
2,137,524
$189,140,199 ($1,700,000)
PROJECTED
BALANCE
JUNE 30, 2011
$49,790,582
136,000
(1,700,000)
(85,000)
48,141,582
13.017.337
1,208.194
8,786
1,012,961
378.413
130,541
258.146
14,545
1,228,465
470,935
0
823,159
0
157.819
170.205
1.278,885
178,795
555,143
81,318
20.973.647
(5,760,314)
7,165.603
(2,258,037)
9,292.032
8,439,284
1.935,770
635,528
1.253,380
918,484
13,275,342
3.475.560
21,494,064
2,495,881
7,009,777
851
256,558
9,763,067
$108,811,644
• FOR THE GENERAL FUND ONLY THIS REPRESENTS UNDESIGNATED, UNRESERVED FUND BALANCE.
Exhibit 3
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
REVENUE SOURCE
[GENERAL FUND
TAXES
PROPERTY TAX
SALES TAX
TRANSIENT TAX
FRANCHISE TAX
BUSINESS LICENSE TAX
TRANSFER TAX
TOTAL TAXES
INTERGOVERNMENTAL
VEHICLE LICENSE FEES
HOMEOWNERS EXEMPTION
OTHER INTERGOVERNMENTAL
TOTAL INTERGOVERNMENTAL
LICENSES AND PERMITS
BUILDING PERMITS
OTHER LICENSES & PERMITS
TOTAL LICENSES & PERMITS
CHARGES FOR SERVICES
PLANNING FEES
BUILDING DEPT FEES
ENGINEERING FEES
AMBULANCE FEES
RECREATION FEES
OTHER CHARGES OR FEES
TOTAL CHARGES FOR SERVICES
FINES AND FORFEITURES
INCOME FROM INVESTMENTS
AND PROPERTY'
INTERDEPARTMENTAL CHARGES
OTHER REVENUE SOURCES
TOTAL GENERAL FUND
ACTUAL
REVENUE
2008-09
1
$50,438,864
24,764,881
12,752,422
5,274,095
3.421,605
621,432
97,273,299
353,406
375,653
1,092,203
1,821,262
450,180
572,157
1,022,337
418,687
378,731
503,814
2.079.718
1,804.080
1,007,245
6,192,275
1,308,090
3,716,201
3.675,858
855,677
$115,864,999
PROJECTED
REVENUE
2009-10
$49,551.000
22,059,000
11,617.000
4,885,000
3,391,000
500,000
92,003,000
300,000
378,000
664,000
1,342,000
575,000
685,000
1,260,000
350,000
534,000
753,000
2,508,000
1,700,000
917,000
6,762,000
1,100,000
7,414,000
3,976,000
979,000
$114,836,000
ESTIMATED
REVENUE
2010-11
$48,712,000
22,888,000
11,965,000
5,002,000
3,462.000
804,000
92,833,000
408.000
381,000
956,000
1,745,000
658,000
725,000
1.383,000
410.000
610.000
750,000
2,532.000
1,743,000
569.000
6,614,000
1,123.000
2,916,000
2,786,000
987,000
$110,387,000
AS%
OF FY 09-10
PROJECTED
-1.7%
3.8%
3.0%
2.4%
2.1%
60.8%
0.9%
36.0%
0.8%
44.0%
30.0%
14.4%
5.8%
DIFFERENCE
2009- 10 TO
2010-11
($839,000)
829,000
348.000
117,000
71,000
304,000
830,000
108,000
3,000
292.000
403,000
83,000
40,000
9.8% 123,000
17.1%
14.2%
-0.4%
1.0%
2.5%
-38.0%
-2.2%
2.1%
-60.7%
-29.9%
0.8%
-3.9%
60,000
76,000
(3,000)
24,000
43.000
(348,000)
(148,000)
23,000
(4,498.000)
(1,190,000)
8,000
($4,449,000)
" INTEREST IS CALCULATED ON AN AMORTIZED COST BASIS
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
REVENUE SOURCE
{SPECIAL REVENUE FUNDS |
AFFORDABLE HOUSING
AFFORDABLE HOUSING FEES
FEDERAL GRANT
STATE GRANT
INTEREST
OTHER
TOTAL AFFORDABLE HOUSING
BUENA VISTA CHANNEL MAINTENANCE
BUENA VISTA FEES
INTEREST
TOTAL BUENA VISTA CHANNEL MAINTENANCE
CITIZEN'S OPTION FOR PUBLIC SAFETY
STATE FUNDING (AB3229)
INTEREST
TOTAL CITIZENS OPTION FOR PUBLIC SAFETY
COMMUNITY ACTIVITY GRANTS
INTEREST
TOTAL COMMUNITY ACTIVITY GRANTS
COMMUNITY DEVELOPMENT BLOCK GRANT
FEDERAL GRANT
INTEREST
OTHER
TOTAL COMMUNITY DEVELOPMENT BLOCK GRANT
CULTURAL ARTS DONATIONS
DONATIONS
INTEREST
OTHER
TOTAL CULTURAL ARTS DONATIONS
LIBRARY AND ARTS ENDOWMENT FUND
INTEREST
TOTAL LIBRARY AND ARTS ENDOWMENT FUND
LIBRARY GIFTS/BEQUESTS
GIFTS/BEQUESTS
INTEREST
OTHER
TOTAL LIBRARY GIFTS/BEQUESTS
LIGHTING AND LANDSCAPING DISTRICT NO. #2
LLD #2 FEES
INTEREST
OTHER
TOTAL LIGHTING AND LANDSCAPING DIST. NO. #2
LOCAL CABLE INFRASTRUCTURE FUND
CABLE FEES
INTEREST
TOTAL LOCAL CABLE INFRASTRUCTURE FUND
MEDIAN MAINTENANCE
MEDIAN MAINTENANCE FEES
INTEREST
TOTAL MEDIAN MAINTENANCE
POLICE ASSET FORFEITURE
ASSET FORFEITURES
INTEREST
OTHER
TOTAL POLICE ASSET FORFEITURE
POLICE GRANTS
FEDERAL GRANT
INTEREST
TOTAL POLICE GRANTS
ACTUAL
REVENUE
2008-09
$18,060
631.407
0
551,402
387,479
1,588,348
102,248
53,024
155,272
100,525
6,583
107,108
46,434
46,434
891,532
51,175
41,283
983,990
20,300
7,736
12,769
40,805
12,953
12,953
95,249
5,470
0
100,719
365,833
25,518
0
391,351
355.746
8,792
364,538
363.137
574
363,711
94,236
30,188
2,865
127,289
0
88
$88
PROJECTED
REVENUE
2009-10
$41,500
220,000
1,000
115,700
253,800
632,000
100,000
33,446
133,446
165.000
0
165.000
9,000
9,000
635,500
0
0
635,500
36,800
1,000
3,800
41,600
2,200
2,200
119,200
400
0
119,600
458,183
21,169
0
479,352
325,000
3,500
328,500
367,904
0
367,904
136,400
7,200
0
143,600
174,300
0
$174,300
ESTIMATED
REVENUE
2010-11
$25,000
7,000
0
325,000
75,000
432,000
100,000
23,800
123,800
112.925
0
112.925
20.000
20,000
664,419
0
0
664.419
42,000
0
9.000
51,000
6,400
6,400
0
500
0
500
433,230
19,500
0
452.730
345.000
3,000
348,000
614,858
0
614,858
50,000
18,000
0
68,000
0
0
$0
AS%
OF FY 09- 10
PROJECTED
-39.8%
-96.8%
-100.0%
180.9%
-70.5%
-31.7%
0.0%
-28.8%
-7.2%
-31.6%
0.0%
-31.6%
122.2%
122.2%
4.6%
0.0%
0.0%
4.6%
14.1%
-100.0%
136.8%
22.6%
190.9%
190.9%
-1000%
25.0%
0.0%
-99.6%
-5.5%
-7.9%
0.0%
-5.6%
6.2%
-14.3%
5.9%
67.1%
0.0%
67.1%
-633%
150.0%
0.0%
-52.7%
-100.0%
0.0%
-100.0%
DIFFERENCE
2009-10 TO
2010-11
($16,500)
(213,000)
(1,000)
209,300
(178,800)
(200,000)
0
(9,646)
(9,646)
(52,075)
0
(52,075)
11,000
11,000
28,919
0
0
28,919
5,200
(1.000)
5,200
9,400
4,200
4,200
(119,200)
100
0
(119,100)
(24,953)
(1.669)
0
(26,622)
20,000
(500)
19,500
246,954
0
246,954
(86,400)
10.800
0
(75.600)
(174.300)
0
($174,300)
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
REVENUE SOURCE
{SPECIAL REVENUE FUNDS - CONTINUED
PUBLIC ART
INTEREST
TOTAL PUBLIC ART
RECREATION DONATIONS
DONATIONS
INTEREST
TOTAL RECREATION DONATIONS
RENTAL ASSISTANCE
FEDERAL GRANT
INTEREST
OTHER
TOTAL RENTAL ASSISTANCE
SENIOR DONATIONS
DONATIONS
INTEREST
OTHER
TOTAL SENIOR DONATIONS
STREET LIGHTING
FEDERAL GRANT
STREET LIGHTING FEES
OTHER
INTEREST
TOTAL STREET LIGHTING
STREET TREE MAINTENANCE
TREE MAINTENANCE FEES
INTEREST
TOTAL STREET TREE MAINTENANCE
TOTAL SPECIAL REVENUE FUNDS
ACTUAL
REVENUE
2008-09
1
$8,608
8,608
28,857
6,836
35,693
5.535,430
50.699
4,966
5,591,095
31,516
8,239
0
39,755
0
722,148
237,387
34,461
993,996
465,080
17,218
482,298
$11.434.051
PROJECTED
REVENUE
2009-10
$1.600
1.600
34,800
1,700
36,500
5,635,849
11,600
11,800
5,659,249
20.000
1,700
0
21,700
2.481,900
727,442
177,981
13,697
3,401,020
465,401
10,450
475,851
$12,827,922
ESTIMATED
REVENUE
2010-11
$4,000
4,000
39,700
0
39,700
6,564,000
10,000
5,000
6,579,000
30,000
5,000
0
35,000
0
728,572
176,023
10,000
914,595
465,177
4,500
469,677
$10,936,604
AS%
OF FY 09-10
PROJECTED
150.0%
150.0%
14.1%
-100.0%
DIFFERENCE
2009-10 TO
2010-11
$2,400
2,400
4,900
(1,700)
8.8% 3,200
16.5%
-13.8%
-57.6%
16.3%
50.0%
194.1%
0.0%
61.3%
-100.0%
0.2%
-11%
-27.0%
-73.1%
-0.1%
-56.9%
-1.3%
-14.7%
928,151
(1.600)
(6,800)
919,751
10,000
3,300
0
13,300
(2,481,900)
1,130
(1,958)
(3,697)
(2,486,425)
(224)
(5,950)
(6,174)
($1,891,318)
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
REVENUE SOURCE
[ENTERPRISE FUNDS
WATER OPERATIONS
WATER SALES
READY TO SERVE CHARGES
PROPERTY TAXES
NEW ACCOUNT CHARGES
BACK-FLOW PROGRAM FEES
PENALTY FEES
INTEREST
ENGINEERING OVERHEAD
SERVICE CONNECTION FEES
AGRICULTURAL CREDITS
OTHER
TOTAL WATER OPERATIONS
RECYCLED WATER OPERATIONS
WATER SALES
READY-TO-SERVE CHARGE
RECYCLED WATER CREDITS
INTEREST
OTHER
TOTAL RECYCLED WATER OPERATIONS
WASTEWATER OPERATIONS
SERVICE CHARGES
MISC SEWER
ENGINEERING OVERHEAD
PENALTY FEES
INTEREST
OTHER
TOTAL WASTEWATER OPERATIONS
SOLID WASTE MANAGEMENT
INTEREST
RECYCLING FEES (AB939)
PENALTY FEES
TRASH SURCHARGE
OTHER
TOTAL SOLID WASTE MANAGEMENT
TOTAL ENTERPRISE FUNDS
ACTUAL
REVENUE
2008-09
1
$15,204,294
5,409,511
2,889,601
105,067
115,187
258.577
(103,039)
0
80,936
81,448
10,137,209
34,178,791
3,172,183
281,731
1,665,434
346,581
285.193
5,751,122
8.431,333
24,717
0
75,283
91,784
108,423
8,731.540
372,739
279,723
56,751
2,695,350
262,428
3,666,991
$52,328,444
PROJECTED
REVENUE
2009-10
$17,000,000
7,000,000
2,775,000
80.000
100,000
233,600
1,500
0
48,000
0
327,500
27,565,600
4,200,000
400,000
1,500,000
200,000
326,413
6,626,413
9,200,000
20,000
0
60,000
51,000
50,000
9,381,000
223,000
275,000
52,000
2,645,605
264,013
3,459,618
$47,032,631
ESTIMATED
REVENUE
2010-11
$19.372.448
7,976,890
2,730,000
80,000
100,000
232,000
1,500
209,927
48,000
80,000
312,500
31,143,265
4,786.134
455,822
1,500,000
200,000
288,013
7,229,969
9,871,455
20,000
284,113
60,000
51,000
25,000
10,311,568
223,000
275,000
52,000
2,658,434
285,167
3,493,601
$52,178.403
AS%
OF FY 09-10
PROJECTED
14.0%
14.0%
-1.6%
0.0%
0.0%
-0.7%
0.0%
00%
00%
00%
-4.6%
13.0%
14.0%
14.0%
0.0%
0.0%
-11.8%
9.1%
7.3%
0.0%
0.0%
0.0%
0.0%
-50.0%
9.9%
0.0%
0.0%
0.0%
0.5%
-8.0%
1.0%
10.9%
DIFFERENCE
2009-10 TO
2010-11
$2,372,448
976,890
(45.000)
0
0
(1.600)
0
209,927
0
80,000
(15,000)
3,577.665
586.134
55.822
0
0
(38.400)
603,556
671,455
0
284,113
0
0
(25.000)
930,568
0
0
0
12,829
21.154
33,983
$5,145,772
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
REVENUE SOURCE
[INTERNAL SERVICE FUNDS
WORKERS' COMPENSATION
INTERDEPARTMENTAL
INTEREST
OTHER
TOTAL WORKERS' COMPENSATION
RISK MANAGEMENT
INTERDEPARTMENTAL
INTEREST
OTHER
TOTAL RISK MANAGEMENT
SELF-INSURED BENEFITS
INTERDEPARTMENTAL
OTHER
TOTAL SELF-INSURED BENEFITS
VEHICLE MAINTENANCE
INTERDEPARTMENTAL
INTEREST
OTHER
TOTAL VEHICLE MAINTENANCE
VEHICLE REPLACEMENT
INTERDEPARTMENTAL
INTEREST
TOTAL VEHICLE REPLACEMENT
INFORMATION TECHNOLOGY
INTERDEPARTMENTAL
INTEREST
TOTAL INFORMATION TECHNOLOGY
TOTAL INTERNAL SERVICE FUNDS
ACTUAL
REVENUE
2008-09
1
$1.397.001
261,006
44.876
1,702.883
1,324,610
10,376
24,720
1,359,706
945,341
37,322
982,663
2.736,744
8,338
34,275
2,779.357
2.147,933
454.978
2,602,911
5.865,580
148,721
6,423.428
$15,850,948
PROJECTED
REVENUE
2009-10
$1,327,400
67,398
18.412
1,413,210
1,563,720
5,682
18,753
1,588,155
891,042
82,890
973,932
2,680,547
3,798
27,941
2,712,286
2,142,649
142,644
2,285.293
5,828,154
43,650
5,871,804
$14,844.680
ESTIMATED
REVENUE
2010-11
$1,327,400
142,691
0
1,470,091
1.563,720
0
20.000
1,583,720
951,216
75,000
1,026,216
3,170.467
0
30,500
3,200,967
2.191.718
276,846
2,468,564
6,515,146
78,000
6,593,146
$16,342,704
AS%
OF FY 09- 10
PROJECTED
0.0%
111.7%
-100.0%
4.0%
0.0%
-1000%
6.7%
-0.3%
6.8%
-9.5%
5.4%
18.3%
-100.0%
9.2%
18.0%
2.3%
94.1%
8.0%
11.8%
78.7%
12.3%
10.1%
DIFFERENCE
2009- 10 TO
2010-11
$0
75,293
(18,412)
56,881
0
(5,682)
1,247
(4,435)
60,174
(7,890)
52,284
489,920
(3.798)
2,559
488,681
49,069
134,202
183,271
686,992
34,350
721,342
$1,498,024
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
REVENUE SOURCE
| REDEVELOPMENT FUNDS |
VILLAGE OPERATIONS / DEBT SERVICE
RENTAL INCOME
TAX INCREMENT
INTEREST
OTHER
TOTAL VILLAGE OPERATIONS / DEBT SERVICE
VILLAGE LOW AND MOD INCOME HOUSING
TAX INCREMENT
INTEREST
TOTAL VILLAGE LOW AND MOD INCOME HOUSING
SCCRDA OPERATIONS / DEBT SERVICE
INTEREST
TOTAL SCCRDA OPERATIONS / DEBT SERVICE
SCCRDA LOW AND MOD INCOME HOUSING
INTEREST
TOTAL SCCRDA LOW AND MOD INCOME HOUSING
TOTAL REDEVELOPMENT FUNDS
ACTUAL
REVENUE
2008-09
$46,354
2,836,483
164,756
0
3,047.593
709,121
243,199
952.320
3,733
3,733
14,842
14,842
$4,018.488
PROJECTED
REVENUE
2009-10
$14,000
2,643,000
90,000
19,000
2,766,000
632,000
128,000
760,000
11,000
11,000
8,000
8,000
$3,545,000
ESTIMATED
REVENUE
2010-11
$14,000
2,580,000
33,000
0
2,627,000
647,000
100,000
747,000
8,000
8,000
8,000
8,000
$3,390,000
AS%
OF FY 09-10
PROJECTED
0.0%
-2.4%
-633%
-100.0%
-5.0%
2.4%
-21.9%
-17%
-27.3%
' -27.3%
0.0%
0.0%
-4.4%
DIFFERENCE
2009- 10 TO
2010-11
$0
(63,000)
(57,000)
(19,000)
(139,000)
15,000
(28,000)
(13,000)
(3,000)
(3,000)
0
0
($155,000)
[TOTAL OPERATING $199,496,930 $193,086,233 $193,234,711 0.1%t148,478 |
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
Exhibit 4
DEPARTMENT
GENERAL FUND
POLICY AND LEADERSHIP GROUP
CITY COUNCIL
CITY CLERK
CITY TREASURER
CITY MANAGER
COMMUNICATIONS
CITY ATTORNEY
RECORDS MANAGEMENT
TOTAL POLICY AND LEADERSHIP GROUP
COMMUNITY AND ECONOMIC DEVELOPMENT
FINANCE
FIRE
HOUSING AND NEIGHBORHOOD SERVICES
HUMAN RESOURCES
LIBRARY AND ARTS
PARKS AND RECREATION
POLICE
PROPERTY AND ENVIROMENTAL MANAGEMENT
TRANSPORTATION
UTILITIES
2007-08
ACTUAL'
J
$384,942
179,315
175,954
1,637,999
995,611
1,318,200
889,549
5,581,570
8,665,158
3,976,423
17,446,853
373,464
2,476,766
10,304,695
12,713,824
26,046,951
4,718,426
9,615,341
$322,663
2008-09
ACTUALS *
$356,218
121,958
185,441
1,457,435
674,407
1 ,288,406
844,886
4,928,751
8,257,699
3,412,776
17,358,775
356,691
2,233,597
10,554,221
12,546,071
27,435,164
5,068,488
9,415,301
$283,705
2009-10
ESTIMATED
EXPENDITURES "
$324,888
107,628
190,672
1,794,225
721,398
1,272,169
782,821
5,193,801
8,264,961
3,092,919
17,170,075
380,405
2,047,016
9,850,276
12,465,382
27,049,583
5,426,796
9,285,282
$275,928
2009-10
BUDGET *
$390,802
129,737
189,913
1,608,989
693,141 ,
1,292,986
856,942
5,162,510
8,192,663
3,300,460
16,770.859
427.883
2,397,237
10,099,684
12,557,269
27,710,998
4,908.529
9,825,393
$295,701
2010-11
BUDGET
$373,363
274,841
196,488
1,570,323
691,628
1,312,291
863,024
5,281,958
7,433,968
3,298,808
16,921,360
430,182
2,374,297
10,418,723
12,428,761
28,272,776
4,802,415
9,116,428
$262,108
%INCR (DEC)
09- 10 BUD
TO
10-11 BUD
-4.5%
111.8%
3.5%
-2.4%
-0.2%
1.5%
0.7%
2.3%
-9.3%
-0.1%
0.9%
0.5%
-1.0%
3.2%
-1.0%
2.0%
-2.2%
-7.2%
-11.4%
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
DEPARTMENT
GENERAL FUND - CONTINUED
MISCELLANEOUS NON-DEPARTMENTAL
EXPENDITURES
BEACH PARKING
COMMUNITY CONTRIBUTIONS
DISASTER PREPAREDNESS
DUES & SUBSCRIPTIONS
LEGAL SERVICES
MISCELLANEOUS EXPENDITURES
OTHER MISCSELLANEOUS EXPENDITURES
PERSONNEL SAVINGS
PROPERTY TAX & OTHER ADMINISTRATION
TOTAL EXPEDNITURES
TRANSFERS
HOSP GROVE DEBT SERVICE
INFRASTRUCTURE REPLACEMENT FUND
MISCELLANEOUS TRANSFERS OUT
TRANSFER TO LLD#1 (MEDIANS)
TRANSFER TO STORM WATER PROGRAM
TOTAL TRANSFERS
TOTAL MISCELLANEOUS NON-DEPARTMENTAL
SUBTOTAL GENERAL FUND
CONTINGENCIES
TOTAL GENERAL FUND
2007-08
ACTUAL*
$1,625
45,000
595,957
52,904
246,666
218,653
0
0
426,282
1 ,587,087
275,000
7,900,000
10,850,000
0
138,800
19,163,800
$20,750,887
122,993,021
0
$122,993,021
2008-09
ACTUALS *
$1,323
649,645
16,412
58,115
102,612
258,362
0
0
624,525
1,710,994
90,000
7,800,000
319,445
0
154,273
8,363,718
$10,074,712
111,925,951
0
$111,925,951
2009-10
ESTIMATED
EXPENDITURES *
$1,482
20,000
0
55,081
23,228
491,035
0
0
649,515
1,240,341
0
6,538,000
2,840,000
0
177,000
9,555,000
$10,795,341
111,297,765
0
$111,297,765
2009-10
BUDGET *
$36,000
0
0
73,800
160,000
208,946
0
(800,000)
565,000
243,746
0
6,538,000
0
0
177,000
6,715,000
$6,958,746
108,607,932
500,000
$109,107,932
2010-11
BUDGET
$0
0
0
73,800
160,000
152,500
6,066
0
670,000
1,062,366
0
7,175,000
0
253,850
207,000
7,635,850
$8,698,216
109,740,000
500,000
$110,240,000
%INCR (DEC)
09-10 BUD
TO
10-11 BUD
-100.0%
-
0.0%
0.0%
-27.0%
-
-100.0%
18.6%
335.8%
9.7%
16.9%
13.7%
25.0%
1 .0%
0.0%
1 .0%
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
DEPARTMENT
SPECIAL REVENUE FUNDS
AFFORDABLE HOUSING
BUENA VISTA CHANNEL MAINTENANCE
CITIZEN'S OPTION FOR PUBLIC SAFETY
COMMUNITY ACTIVITY GRANTS
COMMUNITY DEVELOPMENT BLOCK GRANT
CULTURAL ARTS DONATIONS
LIBRARY AND ARTS ENDOWMENT FUND
LIBRARY GIFTS/BEQUESTS
LIGHTING AND LANDSCAPING DISTRICT NO. 2
LOCAL CABLE INFRASTRUCTURE FUND
MEDIAN MAINTENANCE
POLICE ASSET FORFEITURE
POLICE GRANTS
PUBLIC ART
RECREATION DONATIONS
RENTAL ASSISTANCE
SENIOR DONATIONS
STREET LIGHTING
STREET TREE MAINTENANCE
TOTAL SPECIAL REVENUE FUNDS
ENTERPRISE FUNDS
WATER OPERATIONS
RECYCLED WATER OPERATIONS
WASTEWATER OPERATIONS
SOLID WASTE MANAGEMENT
TOTAL ENTERPRISE FUNDS
INTERNAL SERVICE FUNDS
WORKERS1 COMPENSATION
RISK MANAGEMENT
SELF-INSURED BENEFITS
VEHICLE MAINTENANCE
VEHICLE REPLACEMENT
INFORMATION TECHNOLOGY
TOTAL INTERNAL SERVICE FUNDS
REDEVELOPMENT
VILLAGE OPERATIONS / DEBT SVC
VILLAGE LOW/MOD INCOME HSNG
SCCRDA OPERATIONS / DEBT SVC
SCCRDA LOW/MOD INCOME HSNG
TOTAL REDEVELOPMENT
2007-08
ACTUAL'
$348,036
56,158
181,308
30,000
458,044
67,573
25.791
68,819
197,329
0
492,146
28,531
28,210
5,424
8,223
5,283,978
42,445
1,117,957
532,878
$8,972,850
$25,113,222
5,723,093
9,865,271
2,588,116
$43,289,702
$1,814,833
980,048
1,402,755
2,647,186
731,987
5,895,061
$13,471,870
$2,217,591
74,039
197,933
32,062
$2,521,625
2008-09
ACTUALS '
$432,908
39,304
200,883
29,000
1,034,621
86,979
15,670
159,709
186,997
172,523
552,874
249,394
0
33,488
10,295
6,158,419
29,079
1,007,361
556,124
$10,955,628
$26,239,389
6,007,633
11,494,070
2,580,222
$46,321,314
$2,194,246
1,309,057
976,127
2,440,291
1,398,923
5,792,178
$14,110,822
$2,048,177
79,990
126,621
53,044
$2,307,832
2009-10
ESTIMATED
EXPENDITURES *
$418,481
201,152
165,000
40,000
291,000
95,863
13,899
220,626
224,286
97,286
849,466
69,419
176,503
12,060
30,222
6,168,267
26,443
3,595,762
634,598
$13,330,333
$29,306,071
6,469,698
10,335,711
2,785,338
$48,896,818
$1,602,289
1,264,285
1,053,605
2,625,195
1,160,662
7,367,658
$15,073,694
$7,488,150
80,158
399,820
32,934
$8,001,062
2009-10
BUDGET "
$500,961
74,200
171,880
40,000
730,120
92,055
15,000
6,000
222,036
60,901
678,068
42,000
0
20,000
72,800
6,169,619
35,500
979,254
605,930
$10,516,324
$34,795,184
6,412,539
10,184,486
3,178,116
$54,570,325
$1,835,863
1,459,811
1,044,791
2,872,626
1,574,000
6,263,186
$15,050,277
$1,501,567
100,616
201,599
42,981
$1,846,763
2010-11
BUDGET
$500,577
103,540
112,925
40,000
663,954
91,350
6,400
0
197,153
368,960
680,504
16,530
0
22,900
42,131
6,578,677
40,990
861 ,248
612,295
$10,940,134
$30,937,259
6,889,719
10,527,823
3,201 ,504
$51,556,305
$1,841,504
1,467,171
951,560
2,795,426
1,310,000
5,900,575
$14,266,236
$1,774,404
101,331
201,379
60,410
$2,137,524
%INCR (DEC)
09-10 BUD
TO
10-11 BUD
-0.1%
39.5%
-34.3%
0.0%
-9.1%
-0.8%
-57.3%
-100.0%
-11.2%
505.8%
0.4%
-60.6%
14.5%
-42.1%
6.6%
15.5%
-12.1%
1.1%
4.0%
-11.1%
7.4%
3.4%
0.7%
-5.5%
0.3%
0.5%
-8.9%
-2.7%
-16.8%
-5.8%
-5.2%
18.2%
0.7%
-0.1%
406%
157%
TOTAL OPERATING FUNDS $191,249,068 $185,621,547 $196,599,672 $191,091,621 $189,140.199 -1.0%
General Fund
NonGF
$110,240,000
78,900,199
$189,140,199
NOTE: Estimated expenditures may exceed Adopted Budget since they include prior year budget appropriations.
• ACTUALS,!
[PERSONNEL ALLOCATIONS
FINAL
BUDGET
2008-09
IPOLICY AND LEADERSHIP GROUP |
CITY COUNCIL
CITY TREASURER
CITY MANAGER
COMMUNICATIONS
CITY ATTORNEY
RECORDS MANAGEMENT
[COMMUNITY AND ECONOMIC DEVELOPMENT |
COMMUNITY AND ECONOMIC DEVELOPMENT
[FINANCE |
FINANCE AND RISK MANAGEMENT
IFIRE 1
FIRE
[HOUSING AND NEIGHBORHOOD SERVICES |
HOUSING AND NEIGHBORHOOD SERVICES
IHUMAN RESOURCES 1
HUMAN RESOURCES & WORKERS COMP
[INFORMATION TECHNOLOGY |
INFORMATION TECHNOLOGY
[LIBRARY & ARTS |
LIBRARY & ARTS
[PARKS AND RECREATION |
PARKS AND RECREATION
[POLICE |
POLICE
[PROPERTY AND ENVIRONMENTAL MANAGEMENT |
PROPERTY AND ENVIRONMENTAL MANAGEMENT
[TRANSPORTATION |
TRANSPORTATION
[UTILITIES |
MAINTENANCE AND OPERATIONS
FULL AND 3/4 TIME LABOR FORCE
1.00
0.75
9.00
2.75
7.00
8.00
56.00
31.00
88.75
11.00
10.00
23.50
53.00
73.50
162.00
43.05
63.20
70.75
714.25
I
FINAL PRELIMINARY 2010-11
BUDGET BUDGET REQUESTED
2009-10 2010-11 CHANGES
1.00
0.75
8.00
2.75
7.00
8.00
56.00
31.00
88.75
11.00
10.00
23.00
53.00
72.95
162.00
43.25
61.35
72.95
712.75
1.00
0.75
8.00
2.75
7.00
8.00
54.00
30.50
88.75
11.00
9.00
22.50
52.25
71.95
162.00
41.60
58.40
69.55
699.00
0.00
0.00
0.00
0.00
0.00
0.00
(2.00)
(0.50)
0.00
0.00
(1.00)
(0.50)
(0.75)
(1.00)
0.00
(1.65)
(2.95)
(3.40)
(13.75)
SUMMARY OF REQUESTED LABOR
Full Time Personnel
3/4 Time Personnel in Full Time Count
Limited Term Personnel
Unfunded Full Time Positions
Hourly Full Time Equivalent Personnel
TOTAL LABOR FORCE*
FORCE BY
2008-09
709.00
5.25
4.50
(3.00)
137.83
853.58
CATEGORY
2009-10
707.50
5.25
3.50
(12.00)
138.44
842.69
2010-11
694.50
4.50
0.00
(6.00)
138.94
831.94
Difference
(13.00)
(0.75)
(3.50)
N/A
0.50
(16.75)
A-21
Propsed Fee Changes
June 2010
Exhibit 6
Fee Description
City Clerk - Audio Tape Copy Charge
City Clerk - CD/DVD Copy
City Clerk - Municipal Code Books (Cost for Each)
City Clerk - Municipal Code Supplement Service (per year)
Planning - Minor Conditional Use Permit- Amendment
Fish & Game Fee - Negative Declaration - Set by Dept of Fish & Game
Fish & Game Fee - EIR - Set by Department of Fish and Game
Library
Library Borrowing - Audio Visual Insurance fee - Per Video Tape/DVD
Library Intertibrary Loan
Library Book Non Pickup Fee (per item)
Parks & Recreation
Resident Fee - Open Play Basketball, Volleyball, Badminton
Non-resident Fee - Open Play Basketball, Volleyball, Badminton
Aquatics
City Classes - Beginner - Learn to Swim - Res
City Classes - Beginner - Learn to Swim - Non-Res
City Classes - Adult/Teen - Learn To Swim - Res
City Classes - Adult/Teen - Learn To Swim - Non-Res
City Classes - Parent/Infant thru Pre-School III - Res
City Classes - Parent/Infant thru Pre-School III - Non-Res
Contract Classes - Adapted Aquatics - Res
Contract Classes - Adapted Aquatics - Non-Res
Contract Classes - Diving, Synchro Swim - Res
Contract Classes - Diving, Synchro Swim - Non-Res
Contract Classes - Masters Swim Workouts - Res (Monthly Fee)
Contract Classes - Masters Swim Workouts - Non-Res (Monthly Fee)
Individualized Instr - Basic Swimming - Res (per hour)
Individualized Instr - Basic Swimming - Non-Res (per hour)
Individualized Instr - Advanced Instr/coaching - Res (per hour)
Individualized Instr - Advanced Instr/coaching - Non-Res (per hour)
Current
Fee
$ 30
$ 30
$ 285
$ 125
NEW
$ 2,043
$ 2,818
$ 0.75
$ 2.00
$ 0.50
$ 1
$ 3
$ 47
$ 67
$ 47
$ 67
$ 47
$ 67
$ 47
$ 67
$ 47
$ 67
$ 47
$ 67
$ 47
$ 67
$ 47
$ 67
Proposed
Fee
Delete
$ 30
Actual Cost
Actual Cost
$ 530
$ 2,060
$ 2,842
$ 1.00
$ 5.00
$ 1.00
$ 2
$ 4
$ 50
$ 70
$ 50
$ 70
$ 50
$ 70
$ 50
$ 70
$ 50
$ 70
$ 50
$ 70
$ 50
$ 70
$ 50
$ 70
%
Change
0.8%
0.8%
33.3%
150.0%
100.0%
100.0%
33.3%
6.4%
4.5%
6.4%
4.5%
6.4%
4.5%
6.4%
4.5%
6.4%
4.5%
6.4%
4.5%
6.4%
4.5%
6.4%
4.5%
Proposed Fee Changes
June 2010
FACILITIES
(old)
New Carrillo Ranch (Hourly Rental Fee)
LOCATION
Full Site Rental
Cabana & Pool Area
Patio Area
BBQ Access one time fee
Propane Patio Heater Rental
CATEGORY
A B C D E F
N/C
N/C
N/C
N/C
(90) 99
(78) 86
(31)33
(50) 55
(115) 127
(91) 100
(45) 50
(60) 65
(141) 155
(107) 118
(61) 67
(75) 83
(168) 185
(130) 143
(78) 86
(95) 105
(195) 215
(152) 167
(91) 99
(120) 132
$85 per heater per event
Fees are based on an hourly rate with a six hour minimum
New
MEDIA SERVICES FACILITY FEE SCHEDULE
New
New
DEPOSITS
No Show Fee for Renters
Piano Tuning Fee (Optional)
A B
$25
CATEGORY
C D E F
$150 (Categories B - F)
LOCATION
Schulman Auditorium
Gowland Meeting Room
CATEGORY
A B C D E F
N/C
N/C
(15) 20
(N/C) 10
(20) 30
(15) 20
(55) 65
(20) 30
(75) 90
(30) 40
(100) 120
(40) 50
A City activities; City sponsored activities
B Carlsbad resident not-for-profit (non-paid management); example: Boys and Girls Scouts
C Carlsbad resident not-for-profit (paid management); example: Property Management, HOAs, Boys & Girls Clubs
D Non-resident not-for-profit; resident religious & political et al
E Residential Commercial, for profit et al
F Non-resident Commercial, business, political, non-resident religious, and for profit organizations
Proposed Fee Changes
June 2010
STREET LIGHT ENERGIZING FEES - Current
Watts
70
100
150
200
250
400
Lumens
5,800
9,500
16,000
22,000
30,000
50,000
Above fees are the cost for energizing each street
includes a $30 charge per light for connecting the
point.
Schedule #6
$105
$133
$172
$210
$259
$379
light for 18 months and
light to an SDG&E service
STREET LIGHT ENERGEBtfG
Watts
40
80
100
150
250
FEES - Proposed
Pupil Lumen
5,500
9,600
13,700
20,600
34,200
Above fees are the cost for energizing each street light
includes a $30 charge per light
point.
for connecting the light
Schedule #6
$60
$89
$105
$142
$217
for 18 months and
to an SDG&E service
Traffic Impact Fees
Traffic Impact Fee - Commrc'l/lndust Cost Per Trip (Out of CFD)
Traffic Impact Fee - Commrc'l/lndust Cost Per Trip (Inside CFD)
Traffic Impact Fee - Single Family (Outside of CFD 1) per ADT
Traffic Impact Fee - Condominium (Outside of CFD 1 ) per ADT
Traffic Impact Fee - Apartment (Outside of CFD 1 ) per ADT
Traffic Impact Fee - Single Family (Inside of CFD 1) per ADT
Traffic Impact Fee - Condominium (Inside of CFD 1 ) per ADT
Traffic Impact Fee - Apartment (Inside of CFD 1) per ADT
Current Fee
$ 106
$ 89.68
$ 265
$ 265
$ 265
$ 224.20
$ 224.20
$ 224.20
Proposed
$ 108
$ 91
$ 270
$ 270
$ 270
$ 229
$ 229
$ 229
Fee is to be increased annually by 2% or the annual percentage change in the Caltrans Construction Index (12
month) index whichever is higher.
AH Receive
"r- A D ? c D A r» For the Information of the:CARLSBAD CITY COUNCIL
ACM____DCM CA CC-"" www.carlsbadca.gov
Memorandum
June 1,2010"
To: City Manager
From: Senior Management Analyst Rob Houston
Re: Frequently Asked Questions Regarding Proposition C, Golf Course and
Farmers Building
How much money was put aside for the open space originally back in 2002 and the approval of Prop C?
The total allocation of funds for the four projects listed on Proposition C was $35 million. The project in
question, as defined in the Proposition, lists both open space acquisition and trail linkages, however the
portion of the $35 million total allocation set aside for the open space/trail project was never defined.
Where was the money invested and how much increase or decrease from the original amount?
Allocations for individual capital projects are not adjusted for interest earned. Increases, should they be
necessary, are driven by increased costs of the project and are processed through the agenda bill
process.
Have the funds been used for other purposes or have they remained untouched?
Of the $35 million total allocation $16,215,795 has been allocated to the Aquatic Complex and
$13,750,000 to the City/Safety Training Facility. The remaining balance of $5,034,205 is available for the
remaining projects - Cannon Road Reach 4 and Trails/Open Space acquisition.
How much do we have right now to spend on purchasing new open space properties?
A balance of $5,034,205 exists for the two remaining projects - Cannon Road Reach 4 and Trails/Open
Space acquisition.
How much does the City pay right now to keep the golf course operating since it is operating with
deficit? Where does that money come from?
For Calendar Year 2009, the City subsidized the golf course operations by a total of $1,890,178. It is
currently anticipated that the City will subsidize the golf course operations by a total of $1,760,839 in
Calendar Year 2010. These subsidies are given to the golf course through advances from the City's
General Fund.
City Hall
1200 Carlsbad Village Drive I Carlsbad, CA 92008 i 760-434-2820 I 760-720-9461 fax
Page 2
When was Farmers' Insurance building purchased?
The facility was purchased on January 2, 2002.
What was the purchase price?
The purchase price was $15,730,700.
Where did it come from? General Funds?
This acquisition was completed with funds from CFD #1.
What is the value of the building now if we were to sell it today?
When originally purchased in 2002, the building was appraised by an MAI appraiser at approximately
$15,700,000. The purchase price was established based on the building's appraised value at that time.
No formal appraisal of the building has been done since it was acquired. However, several years later
(2005-2006) several commercial brokerage firms estimated the value at approximately $21-$22 million
dollars.
How much is the cost of its annual maintenance (the building and the grounds together) and how is it
being used?
Upon acquisition of the Farmer's site on January 2, 2002, the City agreed to lease a portion of the
building back to Farmers Insurance Group until they could relocate to a smaller facility. The lease was
for a term of 1 year at a lease rate $35,250 per month which provided an off-set to maintenance costs of
the facility. In addition to the lease revenue for the first year, the City implemented other cost saving
measures including the termination of several of its long term leases for off-site storage space.
Materials that had been stored in leased facilities were moved into a portion of the Farmer's site at 2351
Faraday at a savings to the City of more than $77,000 per year in 2002. In addition to the revenue
generated from the lease-back of the building and cost savings that resulted from termination of storage
leases, the City continues to lease portions of the parking lot to various entities to generate revenue.
In 2006 an analysis was completed that evaluated the annual expenses at that time, which were $68,000
per year. This amount was completely off-set from savings recognized from termination of lease
agreements for off-site storage.
City of Carlsbad »1200 Carlsbad Village Drive « Carlsbad, CA 92008 » www.carlsbad.ca.gov
COUNCIL AND ORGANIZATION PRIORITY PROJECTS
X Next Action Date
0 Estimated Completion Date (if known)
Council
Focus Goal/Project Title
ALL
*•**
***
***
***
***
***
***
Identify funding for realignment of Carlsbad Blvd. and complete exchange of coastal property w/
CA State Parks
Highway 101 Roadway Design and Environmental Review
Explore alternative energy projects
Secure resource agency permits for the Agua Hedionda Dredge Project
Alternative Energy - Maerkle hydro electric project
Develop a business attraction, expansion & retention program
Implement a traffic management system beginning with a pilot program
General Plan Update
Envision Carlsbad
City Budget & Capital Improvement Program
Labor Negotiations
Human Capital Management System
Proposed Power Plant
Power Plant Emergency Ordinance
ENVIRONMENTAL / NATURAL RESOURCES
Desalination project and pipeline construction
NW Storm drain replacement project (Inc Village)
HMP - Lennar - Property acquisition for HMP requirements
Encinas Creek Bridge
Lake Calavera Trails - Master Plan Completion
Water/Sewer Master Plans
6/2/2010 1 Of 2
Council
Focus Goal/Project Title
ECONOMIC
Automated meter reading project
Google fiber to the home request
Solid waste rate analysis
Development review process working group - progress report
Westfield Redevelopment Analysis
Westfield Lease Negotiations
SOCIAL
Alga Norte Park and Aquatic Center
Housing Element Lawsuit/Program Implementation
La Posada Expansion - Grant Oversight
Traffic Calming - Review & Report (Donna Drive & Sierra Morena)
Joint First Responders Training Facility - Construct
Joint First Responders Training Facility - Artwork
2009 Council Guiding Principles and Focus Areas
Guiding Principles
Council members agreed on several guiding principles for 2009. These include:
• Reduce spending
• Focus on maintaining core city services (safety, infrastructure]
• Look for opportunities to increase efficiency
• Collaborate with the community
• Continue planning for the future
• Take advantage of opportunities presented by the down economy, such as reduced
costs for land and certain services
• Recognize that city staff already have full plates; don't add projects without taking
others away
• Engage city's expanded volunteer resources to support city staff and services
2009 Areas of Focus
Management of and response to recession impacts (Financial Health Goal) City council
members acknowledged that the city has taken a very responsible approach to financial
management over the years, but it is still affected by the national recession. Successfully
managing through these tough economic times is a top priority that will color every
decision over the coming year.
Alga Norte Park/Pool Project (Parks, Trails & Open Spaces Goal) City council members
have asked for an updated cost estimate to be prepared for this project so they can make an
informed decision about when and how to proceed with building it,
Traffic Management Strategic Plan (Transportation and Circulation Goal) Traffic on city
streets is an issue that affects the entire community and continues to be a top priority for
the City Council.
Open Space Acquisition (Balanced Community Development Goal) Open space continues
to be a top priority for the community, and the economic downturn could provide
opportunities to acquire open space at a cheaper cost than in recent years.
Joint First Responders Training Facility (Safe Community Goal) Providing top notch,
local training for city police and fire staff improves public safety in the community and is
more efficient than sending city staff to facilities in other parts of the region.
Desalination (Water Goal) Seeing the desalination project thro ugh its final approval is an
important step in providing a reliable future water supply for the community.
Envision Carlsbad (Citizen Connection and Partnership Goal) Planning for the future and
building connections with the community continue to be important goals for the City
Council.
Enterprise Funds
Operating Budget Review
June 1, 2010
Budget Overview
Water
• Water cost increase, however, quantity decrease expected
Wastewater
• 3.4% increase (replacement transfers, Encina charges)
Solid Waste Programs
• Solid Waste
• Storm Water
Rates
• Monday - 6/7 briefings - will bring forward City Manager recommendation
o Still considering options
• Assumptions for preliminary budget
• Water-20.25% increase in October
• Wastewater - 10J3% increase in October
• Solid Waste - 2.65% increase in October (= 3.3% increase to Coast Waste)
Potable Water Operations
Personnel
M&O
Water Purchases
Depreciation
ISFs/Chargebacks
Replacement Transfer
Capital Outlay
Total Budget
Recycled Water Operations
Personnel
M&O
Encina Operations
Purchased Water
Depreciation
ISFs/Chargebacks
Debt Payments
Total Beginning Budget
Total Water Operations
Personnel
M&O
Encina Operations
Purchased Water
Depreciation
Replacement Transfer
ISFs/Chargebacks
Debt Payments
Capital Outlay
Total Beginning Budget
FY10
3,096,418
2,667,158
22,942,945
2,700,000
2,673,789
893,000
12,235
34,985,545
FY10
479,669
540,229
827,126
1,280,209
1,100,000
189,297
2,036,009
6,452,539
FY10
3,576,087
3,207,387
827,126
24,223,154
3,800,000
893,000
2,863,086
2,036,009
12,235
41,438,084
FY11
3,479,854
2,630,549
18,858,315
3,075,000
1,988,303
893,000
12,237
30,937,258
FY11
739,105
462,301
782,475
1,586,020
1,100,000
183,809
2,036,009
6,889,719
FY11
4,218,959
3,092,850
782,475
20,444,335
4,175,000
893,000
2,172,112
2,036,009
12,237
37,826,977
Change $
383,436
(36,609)
(4,084,630)
375,000
(685,486)
-
2
(4,048,287)
Change $
259,436
(77,928)
(44,651)
305,811
-
(5,488)
-
437,180
Change $
642,872
(114,537)
(44,651)
(3,778,819)
375,000
-
(690,974)
-
2
(3,611,107)
% Change
12.4%
-1 .4%
-17.8%
13.9%
-25.6%
0.0%
0.0%
-11.6%
% Change
54.1%
-14.4%
-5.4%
23.9%
0.0%
-2.9%
0.0%
6.8%
% Change
18.0%
-3.6%
-5.4%
-15.6%
9.9%
0.0%
-24.1%
0.0%
0.0%
-8.7%
Personnel Costs
Additional staff (Engineers) due to re-alignment
Offsett in chargebacks - this is where engineer time was previously captured
Purchase Water
Decrease in quantity based on prior actual usage
Depreciation
Increase due to growth in infrastructure assets
M&O
Overall decrease - prior year included one-time funding $137,235
-$12,235 Scada Server
- $125,000 for Urban Water Management Plan
05/28/2010
Wastewater Operations
Personnel
Operations & Maintenance
Encina Plant Operations
Depreciation/Transfers
ISFs & Chargebacks
Total Request
FY10
1,718,567
876,574
3,012,448
3,200,000
1,376,897
10,184,486
FY11
2,190,929
966,455
3,107,030
3,400,000
863,409
10,527,823
Change $
472,362
89,881
94,582
200,000
(513,488)
343,337
% Change
27.5%
10.3%
3.1%
6.3%
-37.3%
3.4%
Personnel Costs
Additional staff (Engineers) due to re-alignment
Offsett in chargebacks - this is where engineer time was previously captured
M&O Costs
$12,000 operating cost of new facility (El Fuerte Lift Station)
$23,000 additional contracted services (previously approved WDR funding)
$40,000 addition for bad debt expense, previously not budgeted
Depreciation
Increase due to growth in infrastructure assets
05/28/2010
Solid Waste FY10 FY11 Change $ % Change
Personnel
M&O
ISFs & Chargebacks
Total Request
Personnel Costs
Re-allocated staff = $17,292
Storm Water
Personnel
Misc. Professional Services
Outside Services
Permits/Regulatory Fees
Waste Disposal
Street Sweeping
ISFs & Chargebacks
Misc. other
Total Request
79,234
397,202
54,106
530,542
FY10
1,066,824
320,000
398,466
191,360
62,000
264,000
252,629
92,295
2,647,574
105,006
384,186
40,365
529,557
FY11
1,069,173
369,500
366,000
141,360
76,250
285,000
235,658
129,006
2,671,947
25,772
(13,016)
(13,741)
(985)
Change $
2,349
49,500
(32,466)
(50,000)
14,250
21,000
(16,971)
36,711
24,373
32.5%
-3.3%
-25.4%
-0.2%
% Change
0.2%
15.5%
-8.1%
-26.1%
23.0%
8.0%
-6.7%
39.8%
0.9%
M&O Costs
Tamarack Channel Cleaning - $20,000
Under sidewalk drain maintenance - $16,500
05/28/2010
PROJECTED EXPENDITURES (2007 FORECAST) VS. PROJECTED REVENUES (2011 FORECAST)
200,000
190,000
Proj. Exp. (2007)
Proj. Rev. (2011) 110,387 114,733 117,958 123,004 127,600 135,498 143,427 148,715 155,313 161,091
•Proj. Exp. (2007)
•Proj. Rev. (2011)
Fiscal Years
WORST CASE SCENARIO (2011 FORECAST): PROJECTED EXPENDITURES VS. PROJECTED REVENUES
170,000
160,000
Proj. Exp. (2011)
Proj. Rev. (2011) 110,387 112,533 117,258 122,604 127,500 135,498 143,427
•Proj. Exp. (2011)
•Proj. Rev. (2011)
Fiscal Years
1 7n nnn
-IC.O nnn
1 ^n nnn
"«r•a£ i/in nnn
VI
OJC
c
Js 1 ^n nnn
8
1 "?n nnn
1 1 n nnn
i nn nnn -
Proj. Exp. (2011)
Proj. Rev. (2011)
ANTICIPATED SCENARIO (2011 FORECAST): PROJECTED EXPENDITURES VS. PROJECTED REVENUES
,-f
/£%-
.X^Xs4'715
>/T^_$3,891
J0^X>4,100
^^^*$2,500 • Pioj. Exp. (2011)
^*^^_ ^>-Proj. Rev. (2011)
_^r~ ^j?r~ " $84 " Items Adjusted to Balance Budget:
^^^l 1. Goal Funding (Significantly Reduced)
1^^ £2g 2. Capital Outlay (Significantly Reduced)
^^r^ 3. Council Contingency (Significantly Reduced)
^^^ $54 4. No Salary Increases in FY Ended 2011; 24.75 Positions Eliminated/Unfunded
5. Most Block Budgets in FY Ended 2011 didn't Receive CPI Increases
$147 6. One-time Funds in FY Ended 2012, 2013, 2014, 2015
7. Shifted Portion of Transportation Expenses to Gas Tax Fund
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
110,240 114,679 117,930 122,920 127,583 132,998 139,327 144,824 150,598 158,353
110,387 114,733 117,958 123,004 127,600 135,498 143,427 148,715 155,313 161,091
Fiscal Years
FY 2010-11 Preliminary
Operating Budget
June 8, 2010
2
Tonight’s Presentation
•Economic overview
•Forecast for the General Fund
•City revenues
•Budget requests
•Water, sewer and trash proposed rates
•Changes to city fees
•Department presentations
Budget Calendar
•Council Meetings
–May 11 –CIP workshop
–June 8 –Operating budget workshop
•Set public hearing for June 29th
–June 29 –Public hearing and adoption of
Fiscal Year 2010-11 Operating and Capital Budgets
•Other Public Meetings
–June 10 –Citizens Budget Workshop
Citizens Budget Workshop
•When:Thursday, June 10
•Where:City of Carlsbad
Faraday Center
1635 Faraday Ave.
Room 173B
•Time:6 p.m.
For additional information
City of Carlsbad Finance Department
760-602-2430
5
City of Carlsbad
Combined Budget
General
45%
Special
Revenue
4%
Redevelopment
1%
Enterprise
21%
Internal
Services
6%
$247.1 million
Operating Budget –77%
Capital –23%
Capital
23%
6
GDP growth 3.2%
“Jobless Recovery”
State Perspective
•$19.1 billion projected deficit
•Possible solutions
–Health and Human Services
reductions
–Federal funds
•No additional hits to local
government
8
Jan 07
139.6
↙
Mar 09
100.7
↙
April 10
109.2
Carlsbad’s Economic Profile
•Home prices
•Taxable transactions
•Tourism
•Population growth
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Proj. Exp. (2007)134,434 140,901 147,265 153,961 160,980 168,220 174,948 181,946 189,224 196,793
Proj. Rev. (2011)110,387 114,733 117,958 123,004 127,600 135,498 143,427 148,715 155,313 161,091
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
190,000
200,000 Dollars (In Thousands)Fiscal Years
PROJECTED EXPENDITURES (2007 FORECAST) VS. PROJECTED REVENUES (2011 FORECAST)
Proj. Exp. (2007)
Proj. Rev. (2011)
($24,047)
($26,168)
($30,957)
($29,307)
($33,380)
($32,722)
($31,521)
($33,231)
($33,911)
($35,702)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Proj. Exp. (2011)116,720 120,701 125,814 132,066 137,369 143,083 149,724 155,536 161,637 169,732
Proj. Rev. (2011)110,387 112,533 117,258 122,604 127,500 135,498 143,427 148,715 155,313 161,091
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000 Dollars (In Thousands)Fiscal Years
WORST CASE SCENARIO (2011 FORECAST): PROJECTED EXPENDITURES VS. PROJECTED REVENUES
Proj. Exp. (2011)
Proj. Rev. (2011)
($6,297)
($6,324)
($9,869)
($6,333)
($8,168)
($9,462)
($8,556)
($7,585)
($6,821)
($8,641)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Proj. Exp. (2011)110,240 114,679 117,930 122,920 127,583 132,998 139,327 144,824 150,598 158,353
Proj. Rev. (2011)110,387 114,733 117,958 123,004 127,600 135,498 143,427 148,715 155,313 161,091
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000 Dollars (In Thousands)Fiscal Years
ANTICIPATED SCENARIO (2011 FORECAST): PROJECTED EXPENDITURES VS. PROJECTED REVENUES
Proj. Exp. (2011)
Proj. Rev. (2011)
$147
$54
$84
$28
$17
$2,500
$4,100
$3,891
$4,715
$2,738
Items Adjusted to Balance Budget:
1. Goal Funding (Significantly Reduced)
2. Capital Outlay (Significantly Reduced)
3. Council Contingency (Significantly Reduced)
4. No Salary Increases in FY Ended 2011; 24.75 Positions Eliminated/Unfunded
5. Most Block Budgets in FY Ended 2011 didn't Receive CPI Increases
6. One-time Funds in FY Ended 2012, 2013, 2014, 2015
7. Shifted Portion of Transportation Expenses to Gas Tax Fund
13
General Fund Revenues
Fiscal Year 2010-11
Property*
44%
Sales*
21%
Hotel Tax*
11%
Business License
3%
All Others
17%
Franchise*
4%
* Four sources make up 80%
$110.4 million
14
Carlsbad Median Home Prices
$681,000In thousands
Resales
$0
$100
$200
$300
$400
$500
$600
$700
$800
2003 2004 2005 2006 2007 2008 2009 2010Fiscal Year
Carlsbad Market Area Foreclosures
2007-Current -Auctioned
0
100
200
300
400
500
Q3
2007
Q4
2007
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Carlsbad
Oceanside
Vista
San Marcos
Encinitas
•Carlsbad –135
•Oceanside –259
•Vista –111
•San Marcos –143
•Encinitas -58
16
0
5
10
15
20
25
$0
$10
$20
$30
$40
$50
$60
'03 '04 '05 '06 '07 08 09 10 11e
AV Com/Indust
AV Residential
Property Taxes
Assessed Values and
Property Taxes
FY
Billions Millions
17
Sales Taxes by Category
$22.9 million
*
**
*
*Five sources make up 65%
*
18
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
HISTORIC SALES TAX BY GEOGRAPHIC AREA
Benchmark Year
Carlsbad Redevelopment Area Auto Mall Plaza Camino Real Carlsbad Premium Outlets The Forum
19
'04 '05 '06 '07 08 09 10e 11e
La Costa/Four Seasons
All Others
Transient Occupancy Taxes
$14.3M
$12.8M $11.6M $12M
20
Franchise Taxes
$0
$1
$2
$3
$4
$5
$6
'05 '06 '07 '08 09 10e 11e
Cable Trash Gas/Elec
In Millions
$4.9M $5.0M
21
Operating Revenues
by Fund Type
General
57%
Special
Revenue
6%
Redevelopment
2%
Enterprise
27%
Internal
Services
8%
$193.2 million
22
2010-11
Budget Requests
Judi Vincent, Budget Manager
Helga Stover, Senior Accountant
City Council’s goals, visions, & priority projects
10 year forecast monitored
Budget policies set for new fiscal year
Departments submit requests to Finance
Budget reviews and recommendations
to City Council
City Council adopts budget
Operating Budget Process
Economic Recession
•General Fund Operating Budget
–Reduced about $10M since FY 2008-09 budget adoption
–Contracted increases have been absorbed
•Ongoing reductions
–Allows the city to operate at lower expenditure levels in
the future
•Recent forecasts indicate the economy is
leveling
•Economic uncertainty continues
Citywide Reorganization
•Purpose
–Transition from a developing to a built-out city
–Realign resources with future needs
•Result
–Increased efficiencies using fewer resources
–Realignment of city staff allows for elimination of some
vacant positions
FY 2010-11 Budget Policies
•Provide a balanced budget
•Plan for a balanced budget for future years
•Minimize service level impacts to citizens
26
FY 2010-11 Budget Policies
(continued)
•No new positions
•No growth in maintenance & operations costs
•No new programs unless legally mandated
•Absorb negotiated salary increases when
possible
•Budget discretionary items at minimal levels
27
FY 2010-11 Position Changes
•Managed hiring freeze over past two years
•12 positions unfunded in past two years
–6 positions remain unfunded in FY 2010-11
–1 position funded again in FY 2010-11
–5 positions eliminated in FY 2010-11
FY 2010-11 Position Changes
(continued)
•Elimination of 17.25 positions (5 unfunded)
–13.75 full-time positions
–3.50 expired limited-term positions
•Full-time position count
716.25 FY 2009-10 Total (full-time & limited-term)
(17.25) Less: eliminated positions
699.00 FY 2010-11 Total
29
30
FY 2010-11 Budget Overview
•Total proposed budget $189.1 million
•Decrease of $2.0 million (1.1%) from FY 2009-10
adopted budget
31
General Fund
58%
Special Revenue
6%
Enterprise
27%
Internal Service
8%
Redevelopment
1%
FY 2010-11 Operating Budget
Total Budget = $189.1 million
General Fund Expenditure History
32
90
95
100
105
110
115
120
FY 2007 FY 2008 FY 2009a FY 2009r FY 2010 FY 2011
+3%-0.3%
-3.3%+1%
$ Millions
-4.8%
General Fund Budget Comparison
$74.5 $73.3
$27.9 $29.3
$6.7 $7.6
0
20
40
60
80
100
120
FY 2009-10 FY 2010-11
Transfers
M & O
Personnel
Total $110.2
In Millions
Total $109.1
34
Infrastructure Replacement Fund
•Funds the replacement of buildings and
facilities (non water or sewer)
•Annual contribution
–FY 2007-08 –$7.9 million
–FY 2008-09 –$7.5 million
–FY 2009-10 –$6.5 million
–FY 2010-11 –$7.2 million
35
General Fund
Policy/
Leadership
5%
Administrative
10%
Public Safety
41%
Non-
Departmental
8%
Library & Arts
9%
Parks &
Recreation
11%
Community
Development
7%
Transportation
9%
Total Budget = $110.2 million
36
General Fund Budget Recap
FY 2010-11
Revenues $ 110.4 million
Budget Requests $ 110.2 million
Projected Surplus $ 0.2 million
37
General Fund Balance
Estimated Balance at 7/01/10 $ 49.6 million
Plus: FY 2010-11 Surplus 0.2 million
Advances/Repayments
(Golf Course, RDA, etc.)-1.7 million
Estimated Balance at $ 48.1 million
6/30/11
38
Special Revenue Funds
Section 8, 60%Maintenance
Districts, 22%
Block grant,
6%
Other, 12%
Total Budget = $10.9 million
39
Work Comp
13%
Risk Mgmt
10%
Self Insured
Benefits
7%
Vehicle Maint
20%
Vehicle Repl
9%
Info Tech
41%
Internal Service Funds
Total Budget = $14.3 million
Enterprise Funds
Budget Requests
FY 2010-11
Water Enterprise
FY 2010-11 Expenditures
$37.8 million
41
$ 4,218,959 ,
11%
$ 3,887,562 ,
10%
$ 20,444,335 ,
54%
$ 7,240,112 ,
19%
$ 2,036,009 , 6%
Personnel
M&O (Including Encina)
Water Purchases
Transfers/Chargebacks
Debt Payments
Potable Water Enterprise
FY 2010 to FY 2011
$3.8 million net budget reduction
Water purchase quantity decreases:
Carlsbad residents and businesses are
using 25% less water
42
Water Purchase Cost Increases
$2.1 million
•Purchased Water from San Diego County
Water Authority
–Wholesale water –9% increase
–Fixed charges –18.6% increase
43
Wastewater Enterprise
$10.5 million
44
$ 2,190,929 , 21%
$ 966,455 , 9%
$ 3,107,030 , 30%
$ 3,400,000 , 32%
$ 863,409 , 8%
Personnel
M&O
Encina Plant Operations
Depreciation/Transfers
Internal Transfers
Wastewater Enterprise
Increases in Operations
FY 2010 to FY 2011
$343,337 (3.4%)
•Encina plant operations
•Replacement transfers
45
Solid Waste / Storm Water
Enterprise Budget Request
FY 2010-11 = $3.2 million
46
17%
40%
43%Solid Waste Programs
Storm Water Protection
Storm Drain Maintenance
$1,377,846
$529,557
$1,294,101
Proposed Increase
Average Monthly Utility Bill
12 units water use a month
Current
FY2010
Proposed
FY2011
Sewer
Solid Waste (Trash)
Water
Monthly increase
% increase
$ 20.93
$ 18.87
$ 44.26
$ 84.06
$ 23.03
$ 19.37
$ 52.20
$ 94.60
$ 10.54
12.5%
47
Proposed Water Rate Increase
18%
•Delivery Charge –Residential
–Current Rate $16.78 per month
–Proposed Rate $19.80 per month
•Commodity Charge –Residential
–Current Rate $2.29 per unit
–Proposed Rate $2.70 per unit (Tier 1: 0-12 units)
Water Rates -continued
•Non-residential –$3.12 per unit
•Agricultural –$3.12 per unit
•Recycled –$2.97 per unit
•Irrigation –$3.50 per unit
49
$0
$10
$20
$30
$40
$50
$60
$70
Water Rate
Comparison to Other Agencies
•Fund ongoing operations at existing service
levels
Proposed Wastewater Rate Increase
10%
52
Residential Wastewater Rates
•Flat rate
•Current rate -$20.93 per month
•Proposed rate -$23.03 per month
53
Non-Residential Wastewater Rates
•Variable based on water usage
•Commodity rates for commercial, non-
residential and institutional categories based
on wastewater strength characteristics
Wastewater Rate
Comparison to Other Agencies
55
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
56
Solid Waste Rates
•2.65% proposed rate increase to pay for
rising costs of service provider
57
Proposed Increase
Average Monthly Utility Bill
12 units water use a month
Current
FY2010
Proposed
FY2011
Sewer
Solid Waste (Trash)
Water
Monthly increase
% increase
$ 20.93
$ 18.87
$ 44.26
$ 84.06
$ 23.03
$ 19.37
$ 52.20
$ 94.60
$ 10.54
12.5%
58
Recommended Increases Effective
January 1, 2011
•Public notices mailed in October
•Public hearing held at least 45 days
following public noticing
•Rates effective January 1, 2011
59
60
Fee Update
Fee Descriptions
•General city fees
–Charged for the usage of city services and
property
•Development related service fees
–Charged to recover the cost of staff time/materials
spent on development related activities
•Development impact fees
–Charged to recover the cost that growth is
anticipated to have on city infrastructure
61
62
Fee Escalators
•Updated by change in West Urban Consumer
Price Index (CPI)
–General city fees
–Development related service fees
•Updated by change in Engineering News
Record Index (ENR)
–Development impact fees
Indexes
63
•West Urban CPI
–April 2009 3.5%
–April 2010 -0.4%
–Cumulative 3.1%
•ENR Index
–April 2009 6.4%
–April 2010 -0.3%
–Cumulative 6.1%
•Recommend no index escalation this year
Library Fees
DVD Borrowing Fee $0.75 $1.00
Interlibrary Loan Fee 2.00 5.00
Book Non-Pickup Fee (per item) 0.50 1.00
Current Proposed
All of these fees are for non-core items and
services offered by the library
Parks & Recreation Fees
Open Play Fee –Resident $1 $2
Non-resident $3 $4
Aquatic Swim Classes 4.5% -6.4%
proposed increase
Current Proposed
Facility Fees
Carrillo Ranch Site Rental 10% increase
Schulman Auditorium $5 -$20 per hour increase
Gowland Meeting Room $5 -$10 per hour increase
New Fees
Propane Patio Heater Rental $85 per hour
No Show Fee for Category B Renters $25
Piano Tuning Fee $150
Traffic Impact Fees
•Ordinance CS-025 states “that the traffic
impact fee shall be adjusted annually as part
of the budget process, by 2% or the annual %
change in the ENR index whichever is higher”
Other Proposed Fee Changes
•City Clerk municipal code books
•New fee for Planning Minor Conditional Use
Permit Amendment
•Fish and Game fees
•Street light energizing fees
Community & Economic
Development
Community & Economic Development
•Downturn in development activity
•Opportunity to focus on:
–Increasing efficiencies
–Process improvements
–Protecting project approvals
•Citywide realignment
–Name and position changes
•Land Development Engineering
•Redevelopment
–SCCRA and Village permits
Community & Economic Development
Top Three Accomplishments
•Carlsbad Community Vision
–Envision Carlsbad Phase I
•Development Review Process improvements
•Housing Element adoption
Areas of Focus for FY 2010-11
•Envision Carlsbad Phase II
•Complete:
–DRP recommendations
–Car Country dialogue
•Major economic development projects
Areas of Focus for FY 2010-11
Economic Development Work Plan
Community Services
Parks & Recreation
Cost Savings Examples
•Reducing water consumption
–Smart water controllers
–Mulch in planting beds
–Recycled water
•Electronic communication,
minimize printing
Key Accomplishments
•Single department for recreation
programs and parks maintenance
•Pyramid pricing strategy
•Citywide trails
–Lake Calavera Trails Master Plan
–Seven miles added
–Adopt-a-Trail
Access and Community Building
•Increased program demand, participation
•Partnerships and sponsorships
•Expanding volunteer opportunities
Library and Cultural Arts
1.240
1.260
1.280
1.300
1.320
1.340
1.360
1.380
FY06-07 FY07-08 FY08-09 FY09-10
Circulation -in millions
Supporting the Community
•Meeting increased demand
–Computer use up 24%
–TGIF Jazz: highest attendance ever
–Three Part Art education: booked
to capacity
•Leveraging technology to keep
pace with service demand
Sustaining a High Quality of Life
•Learning and cultural programs
•Arts education and exhibitions
•24/7 service
•Downloadable audio books
•Online language learning
Sustaining Quality
Infrastructure
Inductive Streetlight Overview
•Replace all city owned streetlights: 7,000+
•Replacement with high efficiency lights
•Total annual savings: $290,000
•2 year payback
Inductive Streetlight
Environmental Benefits
•Reduces streetlight energy by 60%
•Reduces greenhouse gas 1,200 tons/yr.
•Equivalent to removing 170 cars from the road
or planting 124,000 trees/yr.
•Reduce mercury waste by 90%
Traffic Management Center
•Pilot program –evaluate equipment
•Improve traffic flow and reduce emissions
Traffic Management Center
•Implementation program 2 to 5 years
–Focus on prime arterial roads
–Interconnect signals
•Reduce maintenance cost
–Remotely monitor, control and trouble shoot
Carlsbad Boulevard Realignment
•Batiquitos Lagoon to Agua Hedionda Lagoon
•Move road easterly
•Maximize use of coastal property
•Improve multimodal transportation
•Economic development
Carlsbad Boulevard Realignment
•Potential recreational opportunities
–Expand state campgrounds
–Coastal access
–Linear park
–Gathering places
Utilities Department
Provide safe, reliable and affordable services to
our customers, including water, recycled water,
wastewater, storm drains and solid waste
Cost Cutting & Efficiency Measures
•Energy rate plans
•System optimization
•Reverse 411
Accomplishments
•Online utility billing
•Automated meter reading
•Sewer cleaning
•Desalination
Coming Year
•Desalination
•Remote system command and control
•Recycled water conversions
•Hydroelectric energy
Public Safety
Police Department
•Budget savings and efficiencies
–80% of police budget is personnel
–Holding two positions vacant
–Reduced part time hours
–Monitoring scheduling closely to control overtime
Maintaining Core Services
•Consistency and efficiency
•Provide high quality safety
services to the community
•Use tools, technology, and training
to effectively and efficiently fight
crime
Joint First Responders
Training Facility
Fire DepartmentFY 2010 Accomplishments
•Joint First Responder Training Facility
•Standards of Cover Study
•Internal Efficiency Initiative
Fire Department Video
Fire Department
FY 2010-11 goals
•Sustainment
•Refinement
•Regionalization
Budget Calendar
•Council Meetings
–May 11 –CIP workshop
–June 8 –Operating budget workshop
•Set public hearing for June 29th
–June 29 –Public hearing and adoption of
Fiscal Year 2010-11 Operating and Capital Budgets
•Other Public Meetings
–June 10 –Citizens Budget Workshop
Citizens Budget Workshop
•When:Thursday, June 10
•Where:City of Carlsbad
Faraday Center
1635 Faraday Ave.
Room 173B
•Time:6 p.m.
For additional information
City of Carlsbad Finance Department
760-602-2430
FY 2010-11 Preliminary
Operating Budget
June 8, 2010