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HomeMy WebLinkAbout2011-06-07; City Council; 20581; FISCAL YEAR 2011-12 PRELIMINARY OPERATING BUDGETCITY OF CARLSBAD - AGENDA BILL 19 20,581AB# MTG. 06/07/11 DEPT. Finance Fiscal Year 2011-12 Preliminary Operating Budget Workshop DEPT. DIRECTOR CITY ATTORNEY CITY MANAGER RECOMMENDED ACTION: Accept report. Set public hearing for June 21, 2011. ITEM EXPLANATION: The Operating Budget work session on June 7, 2011 is an opportunity for the City Council to review the Fiscal Year 2011-12 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 10, 2011 City Council meeting. In addition to these meetings, a Citizens' Budget Workshop will be held on Thursday, June 9, 2011 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 2011-12 Operating Budget and Capital Improvement Program is scheduled for the June 21, 2011 City Council meeting. 2011-12 BUDGET OVERVIEW: The focus of this year's budget development was to provide a balanced budget for the coming fiscal year and set the city on a path to long-term financial health, ensuring a financial structure that will support current service levels into the future. The city's budget continues to emphasize the maintenance and operations of current city infrastructure as well as maintaining core city services at their current levels. Significant ongoing operating expenses were identified and incorporated in the FY 2011-12 budget where necessary, to ensure the budget reflects the ongoing financial obligations of the city. Economic conditions experienced over the past few years have provided financial challenges. Over the past several years, the city has addressed these challenges, and has taken deliberate measures to continue to allocate resources in a responsible manner, minimizing the impact to users of city services. These measures included a reduction in full-time equivalent (FTE) positions, reducing and/or eliminating cost of living salary increases, using technology and other tools to create efficiencies, and reducing expenses with a minimal impact to the community. By DEPARTMENT CONTACT: Judi Vincent 760-602-2430 iudi.vincent@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED D DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF O OTHER - SEE MINUTES REPORT WAS RECEIVED Page 2 planning ahead, the city was able to make adjustments to its budget over the last several years to compensate for large decreases in revenues. 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 updates a ten-year forecast for the General Fund in order to gauge the effects of today's actions on the city's future. As economic uncertainty continues, this long-term perspective becomes even more important. The Preliminary Budget assumes that overall General Fund revenue will increase by approximately two percent in FY 2011-12 compared to the previous year's projected revenue. Fire Safety and General 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 if decisions are reached prior to budget adoption. The Preliminary Operating Budget for FY 2011-12 totals $194.9 million citywide, which represents an increase of $6.6 million, or 3.5 percent, as compared to the FY 2010-11 adopted budget. Operating revenues are estimated at $197.2 million, which is about a $900,000, or 0.5 percent, increase over the current year's projections. The recommended General Fund Operating Budget is $113.0 million, with estimated revenues of $113.6 million. This is a 2.1 percent increase in the estimated General Fund revenues as compared to the projected FY 2010-11 revenues, and a 3.3 percent increase in General Fund budgeted expenditures compared to the FY 2010-11 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 $48.3 million. This is a decrease of 0.2 percent from the revised FY 2010-11 projections. The FY 2011-12 property tax revenue is based on the assessed value of property in Carlsbad, as provided by the County Assessor in May 2011. Sales taxes are expected to total $27.1 million for FY 2011-12, an increase of three percent compared to the FY 2010-11 revised projections. These estimates assume that the slight improvements we have seen in the economy will continue over the next year, and that we will receive additional revenue from new retail establishments at Paseo Carlsbad, new retail outlets in Bressi Ranch and a full year of sales tax revenues from two new auto dealerships in the city's auto mall. The city's sales tax base is heavily weighted in the transportation and retail sectors. The City of Carlsbad has many car dealerships which historically generated approximately $6 million of sales tax each year. Car sales have slowed since FY 2008-09, but have started to show slight gains in the 4th quarter of 2010, resulting in annual car sales projections of approximately $5.8 million for FY 2011-12. In addition, retail sales comprise over 40 percent of the sales tax generated in Carlsbad. As the economy continues to recover, the city's sales tax revenues are projected to continue to increase, but at a slower rate than what the city experienced in FY 2010-11. The FY 2011-12 revenues for Transient Occupancy Taxes (TOT) are estimated at $12 million, a 5.3 percent increase over prior year projections, due to slight increases projected in the average daily rate at the city's various hotels and the reopening of a section of the La Costa Resort, which was closed for a portion of FY2010-11. In addition, the Park Hyatt Hotel, which PageS took over operations of the Four Seasons Aviara Hotel in June 2010, is becoming more established, raising the expectations of higher TOT revenues in FY 2011-12. Franchise taxes are estimated at $4.6 million, a decrease of 2.1 percent, primarily due to the continued reduction in operations at the Encina power plant, which negatively impacts the franchise tax paid to the city by San Diego Gas and Electric (SDG&E). Development Revenues are expected to decrease by 9.5 percent in FY 2011-12, as a result of subdued activity in residential and commercial development, and are estimated to be $1.9 million in FY 2011-12, as compared to $2.1 million projected for FY 2010-11. General Fund Budgeted Expenditures - The General Fund contains most of the discretionary revenues that fund basic core city services. The recommended General Fund Operating Budget is $113.0 million, which represents a $3.6 million, or 3.3 percent, increase in General Fund budgeted expenditures compared to the FY 2010-11 Adopted Budget. The overall increase is mainly attributed to a $1.4 million budget addition to address future pension costs and the unfunded pension liability; a $1.8 million budget addition to pay the ongoing operating and debt service expenses of the city's municipal golf course; and approximately $400,000 in increased transfers to other city funds. Transfers are discussed further on the next page. In addition, personnel cost increases, due to higher health insurance rates, higher retirement rates as projected by CALPERS, and growth in wages based on previously negotiated labor contracts, were largely offset by reductions in full-time positions. A few expenditures are discussed in more detail below: Proposed Position Changes - A decrease of 14.75 full-time positions is reflected in the FY 2011-12 Preliminary Operating Budget, as compared to the FY 2010-11 Adopted Budget. The total decrease includes the elimination of 10.75 positions identified through the city's expenditure reduction efforts as well as the elimination of four positions that had previously been unfunded. These eliminations are in addition to the 18.75 positions eliminated over the past two fiscal years. The FY 2011-12 Operating Budget includes the elimination of the following 14.75 full-time positions: 1.0 Assistant Planner 1.0 Management Analyst 1.0 Associate Engineer 1.0 Parks Maintenance Worker 2.0 Custodians 0.75 Records Manager 1.0 Deputy City Engineer 1.0 Senior Building Inspector 1.0 Fire Marshal 1.0 Senior Office Specialist 1.0 Graphic Artist 1.0 Utility Worker 2.0 Maintenance Aides In addition to the eliminated positions mentioned above, three other positions in the city are projected to remain unfunded for FY 2011-12. The unfunded positions provide an opportunity for departments to realize salary savings without eliminating positions that may be needed in the future as the economy improves. The net increase in hourly staff totaled 0.8 FTE. This increase is due to a 0.3 FTE increase in the Utilities Department for part-time Utility Workers and a 0.5 FTE increase in the Records 3 Page 4 Department for a part-time Office Assistant. These increases are to provide partial replacements for two of the full-time positions shown as eliminated above. These changes reduce the city workforce from 699 to 684.25 full-time employees. Hourly, full-time equivalent positions increase from 138.94 to 139.74. As mentioned above, three of the full-time positions are not funded in the FY 2011-12 Budget. New Facilities - The city has a number of major capital projects scheduled for construction over the next five years. The costs of maintaining and operating the facilities, including additional personnel if necessary, are added to departmental operating budgets as projects are completed. The Carrillo Ranch Barn Restoration project is scheduled for completion in the Spring of 2011. Additional funds for maintaining this facility are incorporated in the FY 2011-12 budget for the Property and Environmental Management Department. Additional funds have also been added to the Parks and Recreation budget for landscape maintenance of the new Madison Street expansion of Pine Avenue Park. Capital Outlay - The one major capital outlay purchase planned in the General Fund for FY 2011-12 is $110,000 for the replacement of three portable EKG monitors for the Fire Department's emergency medical services team. Other Budget Requests - The FY 2011-12 Preliminary Operating Budget also includes the following transfers and advances to other funds: • $7.4 million transfer to the Infrastructure Replacement Fund for major maintenance and replacement of city infrastructure. This represents 6.5 percent of the General Fund Revenues, the same as the percentage transfer for FY 2010-11. • $215,000 transfer to the Storm Water Program for reimbursement for the General Fund portion of Storm Water expenses. • $473,000 transfer to the Median Maintenance and Street Tree Maintenance Special Revenue Funds to cover cash shortfalls, as annual assessments collected from property owners do not cover operating expenditures. • $1.4 million transfer to the city's municipal golf course for debt service and operations. The Golf Course's budget and financials are on a calendar year basis. The Carlsbad Public Financing Authority approved the calendar year 2011 Golf Course Budget, including $1.8 million of funding from the General Fund. The additional $0.4 million is budgeted in Parks and recreation for Habitat Maintenance costs. • $85,000 advance to the South Carlsbad Coastal Redevelopment Area (SCCRA) from the General Fund, as they are not projecting to generate tax increment for FY 2011- 12. 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. Finally, the City Council's contingency account is proposed at $500,000 in FY 2011-12, which is equal to the FY 2010-11 budget for this item. This resource is available to the City Council to address unanticipated emergencies or unforeseen program needs. Page 5 Other Funds - Enterprise Fund revenues, including Water, Wastewater Services and Solid Waste Management, are projected at $52.8 million, an increase of $2.4 million, or 4.8 percent, over current year projections. The budgeted expenditures are estimated at $53.4 million for FY 2011-12, which is an increase of $1.8 million, or 3.5 percent, over the FY 2010-11 Adopted Budget. Rate increases are being proposed in the Water and Sewer Funds to fund maintenance, operations and replacement, as well as to establish and maintain adequate operating reserves. The primary driver in the proposed water rate increases is the cost of water purchased from the San Diego County Water Authority, including a projected nine percent increase to the wholesale purchase cost of water (from $887 to $967 per acre foot) and a projected 18.7 percent increase in their fixed charges for water purchases. In addition, the cost of purchasing recycled water is anticipated to increase up to 30 percent compared to the prior year. Carlsbad customers continue to conserve water, resulting in a projected decrease in quantity of water purchased in the coming year. 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 $11.3 million, a $3.6 million, or 24.2 percent, decrease from FY 2010-11 projections. Expenditures are budgeted at $11.4 million. This is $500,000, or 4.6 percent, higher than the FY 2010-11 Adopted Budget. The types of items 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). Revenues do not always match expenditures in a given year because of timing differences related to the receipt of grant and donation funding. The combined Redevelopment Agency budget proposal totals $1.8 million. This is approximately $300,000, or 7.9 percent, lower than the FY 2010-11 Adopted Budget. Revenues are estimated at $3.5 million, a decrease of $300,000, or 14.3 percent, from FY 2010-11 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, these fees 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, City Council chose not to increase fees for the past two fiscal years. For FY 2011-12 it is recommended that fees be indexed by the one year change in CPI, which is 1.1 percent. In addition to the general increase mentioned, the following fees are proposed to change for FY 2011-12: Page6 • City Clerk Fees - The cost to get a CD copy in the City Clerk's Office is decreasing from $30 to $3 so that only the cost of materials is being recovered. • Communications Fees - Communications is proposing to increase the cost to provide a DVD copy from $15 to $20 to capture the cost of an outside vendor that provides this service. • Community & Economic Development Fees - The Street Light Energizing Fees for 100, 150 and 250 watts are decreasing slightly, due to the change from high pressure sodium lighting to high efficiency induction lighting and the associated rate reduction per fixture because of this change. • Fire Fees - Fire is proposing to increase the Fire Protection System Installation Fee for Paint Spray Booth Plan Review and Inspection from $80 to $145 in order to get closer to the cost of providing this service. • 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 utilized by few individuals. 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 following specialized Audio Visual Services at the Schulman Auditorium: Video-One Camera Shoot-Per Hour from $37.50 to $38, DVD copies from $12 to $20 and the Audio-Eight Microphone Setup per hour from $100 to $120. • Parks & Recreation Fees - Parks & Recreation is proposing to increase the Community Garden Fee. This fee would increase from $60 to $250 for residents and $350 for non-residents. These increases will recover a portion of the materials that are provided, such as mulch and water. In addition, Parks & Recreation is proposing a new fee for the facility rental of the newly renovated Carrillo Ranch Barn. • Police Fees - In order to keep their fees in line with the market and closer to the cost of providing the service, the Police Department is proposing to increase the Fingerprinting Fee from $23 to $25. In addition, Parking Violations are being increased to be more in line with other local jurisdictions and to recover the pass through cost that is paid to the state. 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 increased by an index stated in the respective resolution or ordinance establishing the fee. 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. Page 7 For FY 2011-12 it is recommended that fees be increased by the one year change in the associated index. Miscellaneous increases applied to fees that are not increasing by the one year index change include the Fish & Game Fee, which is set by state statute; Building Permit Fees, which are based on a percentage of the Uniform Building Code; and the Community Facilities District Annexation Fee which is being increased to reflect full cost. In addition, there are new fees proposed for the permitting of the South Carlsbad Coastal Redevelopment Area, Green Building Standards Plan Check and Inspection ($150), Retaining Wall Plan Check (varies based on structure valuation), and a fee to obtain an individual plumbing, electrical or mechanical permit ($150). These new fees were based on the cost of providing the service. DEVELOPMENT IMPACT FEES These fees are used to recover the cost that growth will have on city infrastructure. These fees are increased annually by an index stated in the respective resolution or ordinance establishing the fee, typically the Engineering News Record (ENR) construction cost index. Council has chosen not to increase these fees in the past two fiscal years and amended the ordinances in those years holding fees in abeyance. These fees are recommended to be indexed by the one year change in their associated indexes for FY 2011-12. EXHIBITS: 1. Fiscal Year 2011-12 Preliminary Operating Budget (Overview) 2. Operating Funds, Projected Fund Balances for FY 2010-11 and FY 2011-12 3. Operating Funds, Revenue Estimates for FY 2010-11 and FY 2011-12 4. Operating Funds, Budget Expenditure Schedule FY 2008-09 through FY 2011-12 5. Personnel Allocations for FY 2010-11 and FY 2011-12 6. Proposed Fee Changes - June 2011 The Preliminary Operating Budget and Capital Improvement Program for Fiscal Year 2011-12 are on file with the City Clerk. Exhibit 1 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW The Preliminary Operating Budget for Fiscal Year 2011-12 totals $194.9 million, with revenues for the year estimated at $197.2 million. General Fund revenues are estimated at $113.6 million and General Fund budgeted operating expenditures are $113.0 million. REVENUE The following table shows the total operating revenues the city anticipates receiving for the remainder of FY 2010-11, as well as those estimated for FY 2011-12. REVENUE SUMMARY BY FUND TYPE (in Millions) FUND GENERAL FUND SPECIAL REVENUE ENTERPRISE INTERNAL SERVICE REDEVELOPMENT TOTAL PROJECTED 2010-11 $ 111.3 14.9 50.4 15.9 3.8 $ 196.3 ESTIMATED 2011-12 $ 113.6 11.3 52.8 16.0 3.5 $ 197.2 $ CHANGE $ 2.3 (3.6) 2.4 0.1 (0.3) $ 0.9 % CHANGE 2.1% -24.2% 4.8% 0.6% -7.9% 0.5% Revenue estimates for the Operating Budget indicate that the city will receive a total of $197.2 million in FY 2011-12, a $900,000, or 0.5 percent, increase over the prior year's projections. The significant changes from the prior year include a $2.4 million, or 4.8 percent, increase in the Enterprise Funds due to proposed water and wastewater rate increases. The General Fund shows an increase of $2.3 million, and Special Revenue Funds show a decrease of $3.6 million from the prior year. 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 provides 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 2010-11 $ 48.4 26.3 11.4 4.7 3.4 2.1 15.0 $ 111.3 ESTIMATED 2011-12 $ 48.3 27.1 12.0 4.6 3.5 1.9 16.2 $ 113.6 $ CHANGE $ (0.1) 0.8 0.6 (0.1) 0.1 (0.2) 1.2 $ 2.3 % CHANGE -0.2% 3.0% 5.3% -2.1% 2.9% -9.5% 8.0% 2.0%" B-1 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW As we continue a slow recovery from the worst economic recession since the Great Depression, we are seeing improvement in most of the General Fund revenue sources. Several of the largest revenue sources in the General Fund are sensitive to fluctuations in economic variables. For example, continued weakness in the residential housing market (some economists believe we may be witnessing a double dip) is adversely affecting property tax receipts. However, the city's sales taxes, transient occupancy taxes and development related revenues appear to be increasing in step with the economic recovery. In the upcoming fiscal year, it is expected that property taxes will be approximately $48.3 million, a 0.2 percent decrease over the projection for FY 2010-11. This is based on a 0.4 percent estimated decrease in assessed valuation, as provided by the County Assessor in April 2011, partially offset by new construction that has occurred over the past year. The median single family home price in Carlsbad is currently $626,000, which is down 8.1 percent over the same time a year ago. Property taxes tend to lag behind the rest of the economy, as the tax revenue for the upcoming fiscal year is based on assessed values from January. Thus, the taxes to be received for Fiscal Year 2011-12 are based on assessed values as of January 1, 2011. Property and Sales Tax Revenues Proposition 13, adopted in 1978, limits the annual increase in assessed values for property. Under this proposition, assessed values (and the related property tax) can grow by no more than two percent 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 decade, we have seen robust growth in property taxes due to new development, high turnover of existing homes, and double-digit growth in housing prices. > Fiscal Year Sales Tax by Category Fourth Quarter 2010 Business to Business 14% Construction 2% Miscellaneous 1% Changes in sales tax revenue align more closely with changes in the overall condition of the economy, and are expected to increase as the current economic recovery gains steam. Sales taxes are expected to total $27.1 million for FY 2011-12, an increase of 3 percent compared to the FY 2010-11 projections. The City of Carlsbad has many car dealerships which historically generated approximately $6 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 2010, resulting in annual car sales projections of approximately $5.8 million for FY 2011-12. Over the past year, many national car manufacturers have seen B-2 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW double-digit growth, partially due to the incentives they have offered to lure customers (cash rebates and zero percent financing options to name a few), as well as pent up demand. Although the city does not expect to see this continued level of growth in sales tax revenues from car sales in FY 2011-12, this growth signals that the economic recovery is well underway. The city's auto mall, Car Country Carlsbad, is now fully leased up, which should also add to the growth in revenues generated from car sales. In addition, retail comprises over 40 percent of the sales tax generated in Carlsbad and with a recovering economy, it is anticipated there will be more discretionary purchases as compared to the past couple of years. As consumer confidence continues to increase, the city's sales tax revenues are projected to continue to increase, but at a slower rate than what the city experienced in FY 2010-11. Included in the projected sales tax figures for FY 2011-12 is the opening of new stores at Paseo Carlsbad, new retail outlets in Bressi Ranch and a full year of sales tax revenues from two new auto dealerships in the city's auto mall. 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 percent of the city's sales tax base and were negatively impacted by the recent economic recession. During FY 2010-11, sales tax revenues, especially in the auto and retail sectors, increased rapidly as the economy began to recover. Sales tax estimates also include approximately $780,000 in Proposition 172 funds, which are earmarked for public safety service expenditures. Proposition 172 requires that the 1/2 cent increase in California sales taxes be allocated to local agencies to fund public safety services. Transient Occupancy Taxes The third highest General Fund revenue source is Transient Occupancy Taxes (TOT, or hotel taxes), estimated at $12 million for FY 2011-12, an increase of 5.3 percent compared to FY 2010-11 estimates. It is anticipated that there will be slight increases in the average daily rate in FY 2011-12, a flat occupancy rate compared to FY 2010- 11, and the reopening of a section of the La Costa Resort, which was closed for a portion of FY 2010-11 due to renovations. In addition, the Park Hyatt Hotel, which took over operations of the Four Seasons Aviara Hotel in June 2010, is becoming more established, raising the expectations of higher TOT revenues in FY 2011-12. 2004 2006 2008 Fiscal Year 2010 2012e B-3 (0 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW $ Millions • Other Franchise •SDG&E Franchise 2004 2006 2008 20102012e Fiscal Year 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 Franchise Taxes 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, changes in their rate structures, and the continued growth of the city's newest cable franchisee, AT&T. Overall, franchise tax revenues are projected to decrease by approximately 2 percent, primarily due to decreased receipts from 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, and is based on the gas used in the generation of electricity. The continued reduction in operations at the Encina power plant is projected to negatively impact the "in-lieu" franchise tax paid by SDG&E, leading to the projected decrease in franchise taxes. 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 actual development. During FY 2009-10, development related revenues began to turn around from historic lows experienced in FY 2008-09. Although not as high as FY 2009-10, FY 2010-11 development related revenues are projected to end the year higher than the historic lows experienced in previous years. In FY 2011-12, development-related revenues are anticipated to decrease slightly as a result of the depressed housing market activity. In FY 2009-10, there were 339 units permitted for residential housing. For FY 2010-11, 212 residential units have been permitted through April 2011. For FY 2011-12, 187 permits are projected to be issued for residential housing. The commercial and industrial building activity remained weak for FY 2009- 10 and FY 2010-11, and is expected to continue to be weak in the coming fiscal year. Due to subdued activity in residential and commercial development, building-related revenues are expected to drop by 9.5 percent in FY 2011-12 Business license taxes are closely tied to the health of the local economy and are projected to increase by 2.9% to an estimated $3.5 million. There are currently about 8,800 licensed businesses in Carlsbad, with just under 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 2011-12 totals $16.2 million, a $1.2 million increase from the previous year. B-4 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW Interdepartmental charges are generated through engineering services charged to capital projects, reimbursed work from other funds and miscellaneous interdepartmental expenses charged to funds outside the General Fund for services performed by departments within the General Fund. In previous fiscal years, the city charged miscellaneous interdepartmental expenses based on guidelines used for federal grant reimbursement, which did not allocate the expenses for all services performed by the General Fund. In FY 2011-12, the city changed the method for calculating the costs of services provided by the General Fund to other funds. This new method will more accurately allocate all costs, including those associated with legislative services provided by the City Council, City Manager, City Clerk, City Treasurer, and Records Management. 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 $1.1 million in transfer taxes for FY 2011-12, which is a $271,000 increase over FY 2010-11. This is mainly due to the increase in the sale of new homes as well as an increase in distressed home 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 $1.6 million in interest on its General Fund investments for Fiscal Year 2011-12 (a projected 2.1 percent yield on the city's investment portfolio). General Fund Revenues FY2006 FY2007 FY2008 FY2009 FY2010 FY2011e FY2012 Overall, as reflected in the bar chart, General Fund revenues are expected to be up 2.1 percent from FY 2010-11 estimates due to the increase in sales and transient occupancy taxes and an increase in interdepartmental charges resulting from the change in the cost allocation methodology. Although the city experienced revenue growth between 9 and 17 percent 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 new development slows, it will be increasingly more difficult to produce double-digit growth in revenues. Due to the slow pace of the current economic recovery, limited growth of is anticipated in the next fiscal year and beyond. Other Funds Revenues from Special Revenue funds are expected to total $11.3 million in FY 2011-12, a $3.6 million decrease from FY 2010-11. The types of programs supported within Special Revenue funds are those funded by specific revenue streams such as: • Grants (Rental Assistance-Section 8 and Community Development Block Grants) • Special fees and assessments (Affordable Housing and Maintenance Assessment Districts) • Donations (Library, Cultural Arts, Recreation and Senior Donations) B-5 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW SPECIAL REVENUE FUNDS 2011-12 PROJECTED REVENUES Donations and Grants 5% All Others 3% Maintenance Districts 24% CDBG 6% Affordable Housing Rental Assistance 56% The most noteworthy changes in the Special Revenue funds occurred in the Street Lighting and the Community Development Block Grant (CDBG) funds. Estimated revenues decreased approximately $1.5 million and $1.8 million, respectively, from FY 2010-11. During FY 2010-11, the city received approximately $1.5 million in American Recovery and Reinvestment Act (ARRA) funds from the California Energy Commission (low interest loan). The city does not anticipate drawing down any additional loan funds in FY 2011-12. These revenues are one-time 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. During FY 2010-11, the Villa Loma low income housing project paid ground lease payments that were in arrears going back to 1999, in full, to the CDBG Fund. This was a one-time event that will not recur in FY 2011-12. Enterprise fund revenues for FY 2011-12 are projected at $52.8 million, an increase of $2.4 million, or 4.7 percent, 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 $38.2 million, an increase of $1.4 million, or 3.7 percent over the current year estimate. These revenues reflect $4.5 million in increased sales revenue due to proposed rate increases, combined with a decrease in other revenues. In FY 2010-11, the District received a one-time settlement in the amount of $3.2 million related to the Marbella lawsuit, causing an anomalous increase in other revenues. The proposed rate increases have not yet been approved by the Board of Directors of the Carlsbad Municipal Water District, and staff will be requesting that a Public Hearing 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 percent increase to the wholesale purchase cost of water (from $887 to $967 per acre foot, effective January 1, 2012), and an 18.7 percent increase in the fixed charges for water purchases (from $4.3 million to $5.1 million) for FY 2011-12. In addition to paying for the wholesale and fixed water costs, the FY 2011-12 Operating Budget B-6 13 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW includes funding for replacement of Carlsbad's water infrastructure, ongoing meter replacements, and building a sufficient operating reserve. Estimated revenues for Wastewater are $11.2 million, $913,600 over the current year estimate. The revenue increase reflects proposed rate increases 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, and staff will be requesting that a Public Hearing be set at a future date to consider proposed rate increases. Internal Service funds show estimated revenues of $16.0 million for FY 2011-12, an increase of about $150,000, or 1 percent, from FY 2010-11 projections. Internal Service funds provide services within the City itself, and include programs such as the self-insurance funds for Workers' Compensation and General Liability (Risk Management), as well as Vehicle Maintenance and Replacement, and Information Technology. 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 changes occurred in Workers Compensation, Vehicle Replacement, and Information Technology. In Workers Compensation, increased claims resulted in a higher rate charged out to departments. For the Vehicle Replacement Fund, the decrease reflects extending the useful lives and the replacement schedule for various vehicles. For Information Technology, increased costs of technology equipment result in higher charges to departments. More discussion on the costs can be found in the Expenditures section of this report. Redevelopment revenues are expected to total $3.5 million in the upcoming year, a decrease of 7.9 percent, or $300,000, from the projections from the previous year. This decrease is the result of the repayment of the Villa Loma low and moderate income housing loan of $437,000 in FY 2010-11 that was made in a prior year. This was a one-time event that will not occur in FY 2011-12. The City has a General Fund reserve policy that sets a minimum reserve of 30 percent of the General Fund Operating Expenditures. In addition, the policy sets a target reserve of 40 percent to 50 percent 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 2009-10, the undesignated and unreserved General Fund balance was approximately $51.4 million. At the end of FY 2010-11 the reserve is projected to be approximately $53.2 million, or 47 percent, of the FY 2010-11 Budget. The reserve amount is consistent with Council Policy 74: General Fund Reserve Guidelines. B-7 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW EXPENDITURES The city's Preliminary Operating Budget for FY 2011-12 totals $194.9 million, which represents an increase of about $6.6 million, or 3.5 percent, as compared to the adopted FY 2010-11 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 provide a balanced budget for the coming fiscal year and set the city on a path to long-term financial health, ensuring that forecast costs can be covered by tepid revenue growth. All known and ongoing operating expenses were incorporated in the FY 2011-12 operating budget, as well as in long-term financial forecast. For FY 2011-12, operating subsidies for the municipal golf course were budgeted as ongoing operating expenses and will no longer be accounted for as advances from the General Fund. This ongoing subsidy results in an additional $1.8 million in expenditures for the General Fund Operating Budget in FY 2011-12. The FY 2011-12 Preliminary Budget also sets aside $1.4 million to address future increases in pension costs and to address the current unfunded liability. Responsible management of the city's resources includes maintaining a focus on a sustainable future by ensuring the city remains in good financial health. Today's decisions will impact future spending levels and, although economic conditions appear to be improving, the following policies for FY 2011-12 were established in line with conservative revenue growth estimates: • Continue to minimize service level impacts to our residents. • No new positions and no growth in maintenance and operations. • No new programs unless required under a legal mandate. • Significant known personnel increases should be included in departmental budget projections. • Personnel and operating reductions should be identified in order to offset known budget increases. • Exercise prudence 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, as a result of the economic recession, in both FY 2008-09 and FY 2009-10 block budgets were decreased in response to decreasing revenues. For FY 2010- 11 the city realigned its organizational structure allowing for increased efficiencies with fewer resources. Block growth remained flat, with overall operations costs remaining at FY 2009-10 levels. For FY 2011-12, in order to meet rising General Fund expenses, some vacant positions were eliminated, related service delivery was restructured, and departments were once again asked to identify operational reductions to absorb necessary increases in their block budgets. No additional appropriations are expected during the fiscal year, except in the case of a significant unanticipated event. As in past years, amounts that are unspent at the end of the fiscal year will be carried forward to the next year. At the end of FY 2010-11, the amounts carried forward by each department will be capped at no more than 10 percent of the previous year's Adopted Budget. B-8 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW Budgeted Expenditures Through the application of these guidelines and policies, the FY 2011-12 Preliminary Operating Budget of $194.9 million was developed. Position Changes A decrease of 14.75 full-time positions is reflected in the FY 2011-12 Preliminary Operating Budget, as compared to the FY 2010-11 Adopted Budget. The total decrease includes the elimination of 10.75 positions identified through the city's expenditure reduction efforts as well as the elimination of four positions that had previously been unfunded. The FY 2011-12 Operating Budget includes the elimination of the following 14.75 full-time positions: 1.0 Assistant Planner 1.0 Management Analyst 1.0 Associate Engineer 1.0 Parks Maintenance Worker 2.0 Custodians 0.75 Records Manager 1.0 Deputy City Engineer 1.0 Senior Building Inspector 1.0 Fire Marshal 1.0 Senior Office Specialist 1.0 Graphic Artist 1.0 Utility Worker 2.0 Maintenance Aides In addition to the eliminated positions mentioned above, three other positions in the city are projected to remain unfunded for FY 2011-12. 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 0.8 FTE. This increase is due to a 0.3 FTE increase in the Utilities Department for part-time Utility Workers and a 0.5 FTE increase in the Records Department for a part-time Office Assistant. These increases are to provide partial replacements for two of the full-time positions shown as eliminated above. These changes result in a city workforce of 684.25 full and three-quarter time employees, and 139.74 hourly, full-time equivalent positions. As mentioned above, three of the full-time positions are not funded in the FY 2011-12 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 departmental operating budgets. 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 for the Property and Environmental Management Department. Additional funds have also been added to the Parks and Recreation budget for landscape maintenance of the new Madison Street expansion of Pine Avenue Park. B-9 if 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW Budget by Fund Type The table below shows the changes in the Preliminary Operating Budget for FY 2011-12, as compared to the Adopted Budget for FY 2010-11. BUDGET EXPENDITURE SUMMARY BY FUND TYPE (In Millions) FUND GENERAL FUND SPECIAL REVENUE ENTERPRISE INTERNAL SERVICE REDEVELOPMENT TOTAL BUDGET 2010-11 $ 109.4 10.9 51.6 14.3 2.1 $ 188.3 BUDGET 2011-12 $ 113.0 11.4 53.4 15.3 1.8 $ 194.9 $ CHANGE $ 3.6 0.5 1.8 1.0 (0.3) $ 6.6 % CHANGE 3.3% 4.6% 3.5% 7.0% -14.3% 3.5% The General Fund contains most of the discretionary revenues that support 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 2010-11 $ 72.5 29.3 - 7.6 $ 109.4 BUDGET 2011-12 $ 74.1 29.3 0.1 9.5 $ 113.0 $ CHANGE $ 1.6 - 0.1 1.9 $ 3.6 % CHANGE 2.2% 0.0% 0.0% 25.0% 3.3% General Fund The total budget for the General Fund for FY 2011-12 is $113.0 million, which is 3.3 percent greater than the previous year's adopted budget of $109.4 million. The total increase is mainly attributable to a $1.6 million, or 2.2 percent, net increase in personnel costs and a $1.9 million, or 25 percent, overall increase in transfers out of the General Fund to other city funds, as can be seen in the table above. These changes are discussed in more detail below. Personnel costs make up approximately 66 percent 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 2011-12 is $74.1 million, which is $1.6 million, or 2.2 percent, more than the previous year's total personnel budget of $72.5 million. The overall increase was due to several factors, as discussed on the following page. B-10 I-7 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW GENERAL FUND PERSONNEL COSTS (In Millions) SALARIES HEALTH INSURANCE RETIREMENT WORKERS COMP OTHER PERSONNEL TOTAL BUDGET 2010-11 $ 50.8 6.1 13.3 1.2 1.1 $ 72.5 BUDGET 2011-12 $ 50.3 6.4 15.0 1.3 1.1 $ 74.1 $ CHANGE $ (0.5) 0.3 1.7 0.1 0.0 $ 1.6 % CHANGE -1.0% 4.9% 12.8% 8.3% 0.0% 2.2% The table above shows the breakdown of personnel costs for the General Fund. Overall, total personnel costs are projected to increase by $1.6 million, or 2.2 percent, for FY 2011-12 as compared to FY 2010-11. Salaries include full and part-time staff costs and are expected to decrease in FY 2011-12. As part of the city's efforts to reduce costs in FY 2011-12, the elimination of 14.75 full-time positions resulted in approximately $1.0 million in total personnel savings, with about $700,000 of that in reduced salary costs. The salary savings are somewhat offset by increases in salaries scheduled to occur in FY 2011-12 due to previously negotiated labor contracts, netting to an overall decrease of $0.5 million, or one percent, in total salary costs. Retirement rates, as projected by CalPERS, will increase in FY 2011-12 by about 1.25 percent for General and Management employees and by about four percent for Safety employees. Rate increases are partially offset by decreases in retirement costs resulting from prior year public safety employee contract negotiations and from the elimination of positions, as mentioned above. The FY 2011-12 Preliminary Budget also includes a $1.4 million budget allowance to address future increases in pension costs and to address the current unfunded liability, resulting in an overall increase of $1.7 million, or 12.8 percent, in total retirement costs. Health insurance rates are projected to increase by about 5 percent, while Worker's Compensation rates are projected to increase by about 10 percent due to increases in claims. These increased costs are partially offset by decreases due to a reduction in the overall number of city personnel. Miscellaneous other personnel costs are projected to remain flat for FY 2011- 12, with small increases offset by the overall personnel decreases previously mentioned. Contract negotiations for both General employees and Fire Safety employees were underway, but not yet complete, at the time the Preliminary Budget was prepared. No actions resulting from the negotiations currently underway have been assumed in the Preliminary Budget but will be incorporated as part of the Final Budget once decisions are reached. Maintenance & Operations costs (or M&O) represent about 26 percent of the total General Fund budget, and include the budgets for all program expenses other than personnel, capital outlay and transfers. For FY 2011-12, potential large increases in overall M&O costs were offset by departmental cost reduction efforts, resulting in overall maintenance and operations costs remaining flat for FY 2011-12, as compared to FY 2010-11. Maintenance and Operations costs are discussed more fully by program later in the report. B-11 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW Capital Outlay includes budgeted equipment purchases over $1,000. One major capital outlay purchase is planned in the General Fund for FY 2011-12, namely $110,000 for the replacement of three portable EKG monitors for the Fire Department's emergency medical services team. 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: • $7.4 million to the Infrastructure Replacement Fund for major maintenance and replacement of city infrastructure. This represents 6.5 percent of the General Fund Revenues, the same as the percentage transfer for FY 2010-11. • $215,000 to the Storm Water Program for reimbursement for the General Fund portion of Storm Water expenses. • $473,000 to the Median Maintenance and Street Tree Maintenance Special Revenue Funds to cover cash shortfalls, as annual assessments collected from property owners do not cover operating expenditures. • $1.4 million to the city's municipal golf course for debt service and operations. The Golf Course's budget and financials are on a calendar year basis. The Carlsbad Public Financing Authority approved the calendar year 2011 Golf Course Budget, including this funding from the General Fund. 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: • $85,000 to the South Carlsbad Coastal Redevelopment Area (SCCRA) - The SCCRA is not projecting to generate tax increment for FY 2011-12. 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. The General Fund has advanced money to several funds over the years. There are no anticipated advance repayments to the General Fund included in the FY 2011-12 General Fund budget. Another way of looking at the General Fund budget is by program. The chart on the following page compares the total FY 2011-12 Budget to the amounts adopted in the previous year. A brief description of each department and its services, as well as a summary of significant department budget changes in the FY 2011-12 Preliminary Operating Budget, are noted below the chart. B-12 2011-12 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 STORM DRAIN ENGINEERING TRANSPORTATION NON-DEPARTMENTAL TOTAL BUDGET 2010-11 $ 5.3 7.4 3.3 16.2 0.4 2.4 10.4 12.4 28.2 4.8 0.3 9.1 9.2 $ 109.4 BUDGET 2011-12 $ 4.9 7.2 3.4 16.8 0.5 2.3 10.4 13.0 28.2 4.7 0.3 8.9 12.4 $ 113.0 $ CHANGE $ (0.4) (0.2) 0.1 0.6 0.1 (0.1) 0.0 0.6 0.0 (0.1) 0.0 (0.2) 3.2 $ 3.6 % CHANGE -7.6% -2.7% 3.0% 3.7% 25.0% -4.2% 0.0% 4.8% 0.0% -2.1% 0.0% -2.2% 34.8% 3.3% The Policy & Leadership Group consists of all elected officials, the City Manager's Office, the City Attorney's Office, and Communications and Records Management functions. The $400,000, or 7.6 percent, decrease for FY 2011-12 is primarily due to the elimination of one position in the City Manager's Office and 1.75 positions in the Records Department, as well as a reduction in election expenses in the City Clerk's Office as compared to the prior year. The Community and Economic Development Department includes economic development, planning, development services, building inspection, and land use engineering. The decrease of about $200,000, or 2.7 percent, is mainly due to the transfer of Code Enforcement duties, including two positions, to the Housing and Neighborhood Services Department. Department personnel cost increases in health and pension benefits were offset by the elimination of two positions. The Finance Department provides the accounting, financial reporting, collections, fiscal oversight, capital and operating budgeting, and long-term financial planning for the city. The increase of about $100,000, or three percent, is due to personnel cost increases, as well as an increase in ambulance billing and credit card fees. The Carlsbad Fire Department is one of the cornerstones of the city's public safety efforts. Services include emergency operations, emergency preparedness, and fire prevention. The $600,000, or 3.7 percent, increase for FY 2011-12 is primarily due to contractual increases in personnel costs, increases in the city's public safety pension rates, and increases in the city's health insurance rates. Other increases include an increase in Internal Service Fund charges due to continued rising costs of replacing fleet equipment for Fire Safety and an increase of $110,000 for a capital outlay purchase to replace three portable EKG machines for emergency services. The elimination of one position in the department offset some of the increases mentioned. B-13 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW Fire 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 Housing and Neighborhood Services Department includes the city's neighborhood services, hiring center and volunteer programs. Code enforcement duties were also added in the FY 2011-12 budget. The net increase of approximately $100,000, or 25 percent, is primarily due to the transfer of Code Enforcement, including two positions, from the Community and Economic Development Department; this increase is partially offset by savings from unfunding one of these positions. • The Human Resources Department supports the city with staffing and recruitment, employee development, performance management, and compensation and labor relations services. The department's budget will decrease by about $100,000, or 4.2 percent, from FY 2010-11 to FY 2011-12, mainly from reducing costs related to an Organizational Development consultant. Budgets for tuition reimbursement and training were also reduced. • 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 department's budget is projected to remain flat from FY 2010-11 to FY 2011-12. Projected personnel and Internal Service Fund charge increases are mostly offset by the elimination of one position and a reduction in the department's budget for purchasing new materials. • The Parks and Recreation Department plans, staffs and maintains the city's parks and recreational facilities, provides an assortment of recreational programs for all ages, maintains landscaping at facilities throughout the city, and manages the city's open space areas. The department's budget increased by $600,000, or 4.8 percent, from the prior year, mainly as a result of adding $335,000 for Habitat Maintenance costs related to the city's municipal golf course and the assumption of landscaping and maintenance services at some city facilities previously budgeted in the Property and Environmental Management Department. Various personnel increases in the department are offset by eliminating one position, a reduction in tree maintenance programs, and savings in ball field lighting. • The Carlsbad Police Department provides high quality public safety services to the community to ensure the preservation of life and property and the maintenance of law and order in the City of Carlsbad. Overall, the Preliminary Operating Budget shows the department's costs remaining flat for FY 2011-12 as compared to FY 2010-11, as projected budget increases were offset by reductions realized through lower pension costs for some staff and savings in both Fleet and Information Technology maintenance and replacement costs. Contracted personnel increases include the impact of a two percent salary increase that was effective January 1, 2011, an increase in the city's public safety pension rates, and an increase in the city's health insurance rates. Additional budget of $250,000 was provided for Police Booking Fees, expected to be charged by San Diego County due to funding decreases. B-14 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW • The Property and Environmental Management Department manages 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 approximately $100,000, or 2.1 percent, decrease from the prior year's budget is primarily due to the transfer of landscaping and maintenance services to Parks and Recreation, as mentioned above. This reduction is somewhat offset by departmental personnel increases. The department is also eliminating two Custodian positions that were unfunded in a previous year. • The Utilities Department in the General Fund consists of Storm Drain Engineering activities. No significant change is expected from FY 2011-12 as compared to the FY 2010-11 budget appropriation. • The Transportation Department manages all streets, traffic and other city-wide transportation services. The department shows an overall decrease of about $200,000, or 2.2 percent, for FY 2011-12 as compared to the FY 2010-11 budget. The decrease is largely the result of eliminating four positions, including two that were previously unfunded. • Non-departmental expenses include the transfers previously discussed, as well as administrative and other expenses not associated with any one department. The increase of $3.2 million, or 34.8 percent, is mainly attributed to a $1.4 million budget appropriation to address future pension costs and the unfunded liability, and a $1.8 million increase in transfers from the General Fund to other city funds, primarily to subsidize the city's municipal golf course. 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 2011-12, which is equal to the budget for this item in FY 2010-11. The budgeted amount represents less than one percent of the FY 2011-12 General Fund Budget. General Fund Expenditure History $ Millions 120 As reflected in the chart to the left, the city began to slow its expenditure growth in FY 2007-08, anticipating an economic slowdown. The chart shows a 4.8 percent mid- year reduction made in January 2009, and a further 3.3 percent reduction in FY 2009-10 in order to reduce expenditures in line with General Fund revenue declines. FY 2010-11 expenditure projections remained relatively flat in anticipation of a flat economy. For FY 2011-12 General Fund Expenditures are expected to increase by $3.6 million, or 3.3 percent, supported by projected revenue increases. FY2006 FY 2009r FY 2010e FY2011 B-15 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW Changes in Other Funds Special Revenue funds, at $11.4 million, are up $500,000, or 4.6 percent, from the prior year. This is mainly due to spending increases in the city's Police Asset Forfeiture, Street Lighting, and Buena Vista Channel Maintenance Funds. Enterprise funds total $53.4 million, which is an increase of $1.8 million, or 3.5 percent, over the FY 2010-11 Adopted Budget. The most significant change in Water Operations is due to the increase in the cost of water purchased from the San Diego County Water Authority (18.7 percent increase in fixed costs and a 9 percent increase in variable costs due to a proposed increase from $887 to $967 per acre foot effective January 1, 2012). In addition, the cost of purchasing recycled water is anticipated to increase up to 30 percent when compared to the Adopted Budget for FY 2010-11. Carlsbad customers continue to conserve water, and therefore the quantities purchased are expected to decrease in comparison to the adopted FY 2010-11 budget. The Operating Budget also includes additional funding for depreciation replacement transfers related to growth in the water infrastructure system. Wastewater operations are projected to increase 3.7 percent, or $490,000, over the Adopted Budget for FY 2010-11. The operating budget includes additional funding for depreciation replacement transfers related to growth in the wastewater infrastructure system. The Internal Service funds total $15.3 million, an increase of $1.0 million, or 7 percent, from the prior year. The Internal Service funds are self-supporting through user charges. Changes occurred in a number of these funds, including the following: • The Workers Compensation Fund budget shows an increase of approximately $150,000, or 8.4 percent, based on higher claims in the fund. • The Self Insured Benefits budget shows an increase of approximately $150,000 based on projected increases in health related expenses paid from the fund. • The Vehicle Replacement Fund budget varies from year to year depending on the vehicles to be replaced. The budget for the fund is about $400,000 more than the previous year, or a 31 percent increase, due to more vehicles being due for replacement than in the previous year. A list of the requested replacement vehicles can be found at the end of this document. • The Information Technology Fund shows an increase in the department's budget of approximately $400,000, or 6.8 percent, from FY 2010-11 to FY 2011-12. This is mostly due to more technology equipment being due for replacement than in the prior year. The Redevelopment Agency budgets have decreased about $300,000, or 14.3 percent, from the previous year, mainly due to a reduction in the previously required SERAF payment for the Village Redevelopment area. B-16 2011-12 PRELIMINARY OPERATING BUDGET OVERVIEW SUMMARY This Preliminary Operating Budget for FY 2011-12 provides a balanced budget for the coming fiscal year while maintaining a long-term plan to sustain a balanced budget in future years, given continued economic uncertainty. The city's budget continues to emphasize the maintenance and operations of current city infrastructure as well as maintaining core city services at their current levels. Significant ongoing operating expenses were identified and incorporated in the FY 2011-12 where necessary, to ensure the budget reflects the ongoing financial obligations of the city. Being conscious of continued economic uncertainty, no new programs or expanded levels of service are included in the budget. The Carlsbad economy is starting to improve, with new business investment in the city and recent gains in city sales tax revenues. However, revenues and expenditures will continue to need close monitoring, as sluggish housing sales and high unemployment rates persist. In addition, concerns continue over the impact that budget decisions at the state level could have on the city's financial situation. The ten-year financial forecast is a useful tool to help manage our way through this continued economic uncertainty. The City of Carlsbad is in a good economic position but is not immune to the impacts of a fluctuating economy. Careful planning and responsible management have allowed the city to maintain an excellent quality of life for its residents and has provided a sound economic base for the future. Fiscal conservatism, which has consistently been the city's overall approach to managing its finances, is even more important during these economically uncertain times. The city is in an excellent position to take advantage of new economic opportunities due to careful planning and maintaining a sound financial footing. B-17 Exhibit 2 CITY OF CARLSBAD OPERATING FUNDS PROJECTED FUND BALANCES FUND UNRESERVED BALANCE JULY 1,2010 PROJECTED REVENUES PROJECTED EXPENDITURES ADVANCES PROJECTED & FUND OTHER BALANCE TRANSFERS CHANGES JUNE 30, 2011 NEED TO UPDATE GENERAL FUND | REPAYMENT FROM SOLID WASTE ADVANCE TO SCCRA ADVANCE TO GOLF COURSE FUND ADVANCE TO HABITAT MITIGATION FEE FUND CHANGE IN RESERVATIONS & DESIGNATIONS TOTAL GENERAL FUND SPECIAL REVENUE I 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 - SECTION 8 SENIOR DONATIONS STREET LIGHTING STREET TREE MAINTENANCE TOTAL SPECIAL REVENUE ENTERPRISE 1 WATER OPERATIONS RECYCLED WATER OPERATIONS WASTEWATER OPERATIONS SOLID WASTE MANAGEMENT TOTAL ENTERPRISE INTERNAL SERVICE I WORKERS' COMPENSATION RISK MANAGEMENT SELF-INSURED BENEFITS VEHICLE MAINTENANCE VEHICLE REPLACEMENT INFORMATION TECHNOLOGY TOTAL INTERNAL SERVICE REDEVELOPMENT 1 VILLAGE OPERATIONS / DEBT SERVICE VILLAGE LOW/MOD INCOME HOUSING SCCRA OPERATIONS / DEBT SERVICE SCCRA LOW/MOD INCOME HOUSING TOTAL REDEVELOPMENT $51,416,340 ' 51,416,340 13,895,198 1,289,237 (16,056) 1,052,132 1,116 190,476 263,690 48,213 967,077 411,534 303,356 763,972 140,686 185,490 182,877 1,296,366 195,313 1,367,733 303,559 22,841,969 (5,193,120) 5,884,064 (1,373,418) 9,404,757 8,722,283 2,419,910 685,100 1,250.809 580,759 12,553,655 4,051,712 21,541,945 1,829,425 5,685,553 147.170 309,911 7,972,059 $111,348,000 111,348,000 657,100 123,800 112,925 20,000 2,440,000 47,000 5,000 196,800 452,730 357,500 614,858 54,000 200,000 3,300 58,700 6,652,400 29,900 2,443.773 469,677 14,939,463 30,964,800 5,835,850 10,239,000 3,407,310 50,446,960 1,443,903 1.630,632 915,003 2,848,029 2,431,718 6,593,146 15,862,431 2,767,000 941,250 57,000 0 3,765,250 $106,703,055 106,703,055 504,913 129,573 96,869 0 622,567 94,806 6,605 130,806 199,353 294,458 906.074 19,756 340,686 28,445 33,157 6,346,335 31.000 3,132,266 694,860 13,612,529 29,335,177 7,110,264 9,648,270 2,779,456 48,873,167 2.868,608 2,087,080 990,328 2.713,374 1,631,750 6,661 ,743 16,952,883 3.908,282 80,585 400,990 43,185 4,433,042 $56,061,285 680,219 680,219 (285,000) (285,000) (1,640,000) (1,640,000) (230,755) (230,755) (1,393,173) (1,393,173) 53,192,576 14,047,385 1,283,464 0 1,072,132 1,818,549 142,670 262,085 114,207 1,220,454 474,576 12.140 798,216 0 160,345 208,420 1,602,431 194,213 679,240 78,376 24,168,903 (3,563.497) 4,609,650 (782,688) (680,219) 9,352,392 9,615,857 995,205 228,652 1,175.484 715,414 13,353,623 3,983,115 20,451,493 688,143 6,546,218 285,000 88,180 266,726 7,589,267 TOTAL OPERATING FUNDS $112,494,596 $196,362,104 $190,574,676 ($1,870,755) ($1,393,173) $115,018,096 FOR THE GENERAL FUND ONLY THIS REPRESENTS UNDESIGNATED, UNRESERVED FUND BALANCE. B-18 CITY OF CARLSBAD OPERATING FUNDS PROJECTED FUND BALANCES FUND GENERAL FUND REPAYMENT FROM SOLID WASTE ADVANCE TO SCCRDA ADVANCE TO GOLF COURSE FUND ADVANCE TO HABITAT MITIGATION FEE FUND 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 - SECTION 8 SENIOR DONATIONS STREET LIGHTING STREET TREE MAINTENANCE TOTAL SPECIAL REVENUE I 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 I REDEVELOPMENT VILLAGE OPERATIONS / DEBT SERVICE VILLAGE LOW/MOD INCOME HOUSING SCCRA OPERATIONS / DEBT SERVICE SCCRA LOW/MOD INCOME HOUSING TOTAL REDEVELOPMENT ITOTAL OPERATING FUNDS PROJECTED BALANCE JULY 1,2011 $53,192,576 • 53,192,576 14,047,385 1,283,464 0 1,072,132 1,818,549 142,670 262,085 114,207 1,220,454 474,576 12,140 798,216 0 160,345 208,420 1,602,431 194,213 679,240 78,376 24,168,903 (3,563,497) 4,609,650 (782,688) 9,352,392 9,615,857 995,205 228,652 1,175,484 715,414 13,353,623 3,983,115 20,451.493 688,143 6,546,218 88,180 266,726 7,589,267 $115,018,096 ESTIMATED REVENUES $113,569,453 113,569,453 654,000 125,710 0 20,000 664,214 14,000 4,000 59,000 432,544 361,000 718,674 65,000 0 0 32,450 6,618,000 28,000 920,990 580,319 11,297,901 31,660,268 6,515,252 11,152.614 3,495,100 52,823,234 1,573,841 1,629,110 956,860 2,917,809 2,162,321 6,774,624 16,014,565 2,726,800 700,000 30,000 6,000 3,462,800 $197,167,953 ADVANCES ADOPTED & FUND OTHER BUDGET TRANSFERS CHANGES $113,007,941 (85,000) 113,007,941 473,580 293,511 0 50,000 664,834 76,960 4,000 59,000 216,850 366,962 730,814 156,258 0 0 44,408 6,622,482 34,990 1,002,765 643,892 11,441,306 31,554,624 7,476.108 10.898.813 3,500,924 53.430,469 1,996,557 1,381.044 1,098,265 2.845,518 1,716,500 6,299,288 15,337,172 1,441,954 73,558 190,459 85,000 54,016 1,759,987 $194,976,875 $0 PROJECTED BALANCE JUNE 30, 2012 $53,754,088 0 (85,000) 0 0 0 53,669,088 14,227,805 1,115,663 0 1,042,132 1,817,929 79,710 262,085 114,207 1.436,148 468,614 0 706,958 0 160,345 196,462 1,597,949 187,223 597,465 14,803 24,025,498 (3,457,853) 3,648,794 (528,887) 9,346,568 9,008,622 572,489 476,718 1,034,079 787,705 13.799,444 4,458,451 21,128,886 1,972,989 7,172,660 12,721 218,710 9,377,080 $117,209,174 • FOR THE GENERAL FUND ONLY THIS REPRESENTS UNDESIGNATED, UNRESERVED FUND BALANCE. B-19 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 2009-10 I $49,694,555 22,819,426 11,490,488 4,906,139 3,457,779 757,632 93,126,019 308,984 ,376,145 1,010,807 1,695,936 731,260 549,900 1,281,160 358,831 537,681 2,318,371 1,704,791 1,116,000 6,035,674 1,054,086 3,544,468 2,710,558 6,310,229 $115,758,130 PROJECTED REVENUE 2010-11 $48,424,000 26,342,000 11,365,000 4,696,000 3,378,000 804,000 95,009,000 317,000 381,000 956,000 1,654,000 700,000 750,000 1,450,000 180,000 610,000 630,000 2,387,000 1,650,000 497,000 5,954,000 977,000 2,532,000 2,786,000 986,000 $111,348,000 ESTIMATED REVENUE 2011-12 $48,273,000 27,063,000 11,968,000 4,632,000 3,453,000 1,075,000 96,464,000 322,000 383,000 912,163 1,617,163 600,000 773,000 1,373,000 186,000 560,000 574,500 2,439,000 1,648,000 538,640 5,946,140 1,021,600 2,578,100 3,592,600 976,850 $113,569,453 AS% OF FY 10-11 PROJECTED -0.3% 2.7% 5.3% -1.4% 2.2% 33.7% 1.5% 1.6% 0.5% -4.6% -2.2% -14.3% 3.1% -5.3% 3.3% -8.2% -8.8% 2.2% -0.1% 8.4% -0.1% 4.6% 1.8% 29.0% -0.9% 2.0% DIFFERENCE 2010-11 TO 2011-12 ($151,000) 721,000 603,000 (64,000) 75,000 271,000 1,455,000 5,000 2,000 (43,837) (36,837) (100,000) 23,000 (77,000) 6,000 (50,000) (55,500) 52,000 (2,000) 41,640 (7,860) 44,600 46,100 806,600 (9,150) $2,221,453 * INTEREST IS CALCULATED ON AN AMORTIZED COST BASIS B-20 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 2009-10 $47,310 227,124 1,000 359,024 456,527 1,090,985 81,369 33,441 114,810 107,793 (3,664) 104,129 28,171 28,171 294,813 53,573 54,910 403,296 36,823 4,509 7,500 48,832 6,870 6,870 119,321 2,494 0 121,815 440,336 23,393 0 463,729 337,880 10,556 348,436 355,134 192 355,326 144,732 21,150 0 165,882 174,311 2,476 $176,787 PROJECTED REVENUE 2010-11 $315,000 7,100 0 260,000 75,000 657,100 100,000 23,800 123,800 112,925 0 112,925 20,000 20,000 406,000 947,000 1,087,000 2,440,000 42,000 3,000 2,000 47,000 5,000 5,000 195,000 1,800 0 196,800 433,230 19,500 0 452,730 350,000 7,500 357,500 361,008 253,850 614,858 40,000 14,000 0 54,000 200,000 0 $200,000 ESTIMATED REVENUE 2011-12 $24,000 0 0 260,000 370,000 654,000 100,000 25,710 125,710 0 0 20,000 20,000 664,214 0 0 664,214 14,000 0 0 14,000 4,000 4,000 59,000 0 59,000 412,576 19,968 0 432,544 355.000 6,000 361,000 718,674 0 718,674 50,000 15,000 0 65,000 0 0 $0 AS% OF FY 10-11 PROJECTED -92.4% -100.0% 0.0% 0.0% 393.3% -0.5% 0.0% 8.0% 1.5% -100.0% 0.0% -100.0% 0.0% 00% 63.6% -100.0% -100.0% -72.8% -66.7% -100.0% -100.0% -70.2% -20.0% -20.0% -69.7% -100.0% 0.0% -70.0% -4.8% 2.4% 0.0% -4.5% 1.4% -20.0% 1.0% 99.1% -100.0% 16.9% 25.0% 7.1% 0.0% 20.4% -100.0% 0.0% -100.0% DIFFERENCE 2010-11 TO 2011-12 ($291,000) (7,100) 0 0 295,000 (3,100) 0 1,910 1,910 (112,925) 0 (112,925) 0 0 258,214 (947,000) (1,087,000) (1,775,786) (28,000) (3,000) (2,000) (33,000) (1,000) (1,000) (136,000) (1,800) 0 (137,800) (20,654) 468 0 (20,186) 5,000 (1,500) 3,500 357,666 (253,850) 103,816 10,000 1,000 0 11,000 (200,000) 0 ($200,000) B-21 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 2009-10 m $4,853 4,853 38,470 4,984 43,454 5,723,985 20,540 15,313 5,759,838 23,725 5,155 0 28,880 0 1,666,454 243,551 48,476 1,958,481 465,838 7,071 472,909 $11,697,483 PROJECTED REVENUE 2010-11 $3,300 3,300 55,000 3,700 58,700 6,618,000 21,500 12,900 6,652,400 12,500 3,600 13,800 29,900 1,539,178 728,572 176,023 2,443,773 465,177 4,500 469,677 $14,939,463 ESTIMATED REVENUE 2011-12 $0 0 32,450 0 32,450 6,600,000 18,000 6,618,000 28,000 0 28,000 0 729,689 177,516 13,785 920,990 578,769 1,550 580,319 $11,297,901 AS% OF FY 10-11 PROJECTED -100.0% -100.0% -41.0% -100.0% -44.7% -0.3% -16.3% -100.0% -0.5% 124.0% -100.0% -100.0% -6.4% 0.0% -52.6% -75.6% -92.2% -62.3% 24.4% -65.6% 236% -24.4% DIFFERENCE 2010-11 TO 2011-12 ($3,300) (3,300) (22,550) (3,700) (26,250) (18,000) (3,500) (12,900) (34,400) 15,500 (3,600) (13,800) (1,900) 0 (809,489) (551,056) (162,238) (1,522,783) 113,592 (2,950) 110,642 ($3,641,562) B-22 o o9-1 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 2009-10 I $17,701,110 6,957,486 2,797,015 125,880 116,672 261,326 (68,194) 0 114,996 352,860 28,359,151 4,101,232 450,332 1,660,097 191,993 223,143 6,626,797 9,491,143 23,906 0 70,616 55,046 76,689 9,717,400 245,955 272,184 51,847 2,663,770 233,942 3,467,698 $48,171,046 PROJECTED REVENUE 2010-11 $16,700,000 7,370,000 2,871,700 120,000 120,000 280,000 (53,800) 86,000 82,000 500 3,388,400 30,964,800 4,035,000 520,000 1,000,000 130,000 150,850 5,835,850 9,900,000 21,000 180,000 70,000 51,000 17,000 10,239,000 170,000 275,000 55,200 2,645,605 261,505 3,407,310 $50,446,960 ESTIMATED REVENUE 2011-12 $19,320,497 8,526,471 2,950,000 100,000 100,000 257,000 1,000 80,000 75,000 250,300 31,660,268 4,668,156 601,596 1,000,000 130,000 115,500 6,515,252 10,815,614 20,000 180,000 70,000 51,000 16,000 11,152,614 190,000 275,000 55,000 2,700,000 275,100 3,495,100 $52,823,234 AS% OF FY 10-11 PROJECTED 15.7% 15.7% 2.7% -16.7% -16.7% -8.2% 101.9% -7.0% -8.5% -100.0% -92.6% 2.3% 15.7% 15.7% 0.0% 0.0% -23.4% 11.6% 9.3% -4.8% 0.0% 0.0% 0.0% -5.9% 89% 11.8% 0.0% -0.4% 2.1% -5.2% 2.6% 4.7% DIFFERENCE 2010-11 TO 2011-12 $2,620,497 1,156,471 78,300 (20,000) (20,000) (23,000) 54,800 (6,000) (7,000) (500) (3,138,100) 695,468 633,156 81,596 0 0 (35,350) 679,402 915,614 (1,000) 0 0 0 (1,000) 913,614 20,000 0 (200) 54,395 13,595 87,790 $2,376,274 B-23 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 INTEREST OTHER TOTAL SELF-INSURED BENEFITS VEHICLE MAINTENANCE INTERDEPARTMENTAL INTEREST OTHER TOTAL VEHICLE MAINTENANCE VEHICLE REPLACEMENT INTERDEPARTMENTAL INTEREST OTHER TOTAL VEHICLE REPLACEMENT INFORMATION TECHNOLOGY FEDERAL GRANT INTERDEPARTMENTAL INTEREST OTHER TOTAL INFORMATION TECHNOLOGY TOTAL INTERNAL SERVICE FUNDS ACTUAL REVENUE 2009-10 I $1,327,400 155,307 36,974 1,519,681 1,563,720 21,805 21,787 1,607,312 875,677 0 75,762 951,439 2,689,237 13,136 28,801 2,731,174 2,143,637 324,856 0 2,468,493 0 5,838,489 106,362 297,957 6,242,808 $15,520,907 PROJECTED REVENUE 2010-11 $1,327,400 110,611 5,892 1,443,903 1,610,632 20,000 1,630,632 837,147 77,856 915,003 2,819,223 28,806 2,848,029 2,191,718 240,000 0 2,431,718 0 6,515,146 78,000 6,593,146 $15,862,431 ESTIMATED REVENUE 2011-12 $1,457,230 110,611 6,000 1,573,841 1,609,110 0 20,000 1,629,110 879,004 0 77,856 956,860 2,885,809 0 32,000 2,917,809 1,862,321 300,000 0 2,162,321 0 6,683,208 75,000 16,416 6,774,624 $16,014,565 AS% OF FY 10-11 PROJECTED 9.8% 0.0% 1.8% 9.0% -0.1% 0.0% 0.0% -0.1% 5.0% -100.0% 0.0% 4.6% 2.4% 0.0% 11.1% 2.5% -15.0% 25.0% 0.0% -11.1% 0.0% 26% -3.9% 0.0% 2.8% 1.0% DIFFERENCE 2010-11 TO 2011-12 $129,830 0 108 129,938 (1,522) 0 0 (1,522) 41,857 (77,856) 77,856 41,857 66,586 0 3,194 69,780 (329,397) 60,000 0 (269,397) 0 168,062 (3,000) 16,416 181,478 $152,134 B-24 CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOURCE [REDEVELOPMENT FUNDS I VILLAGE OPERATIONS / DEBT SERVICE RENTAL INCOME TAX INCREMENT INTEREST OTHER TOTAL VILLAGE OPERATIONS / DEBT SERVICE VILLAGE LOW AND MOD INCOME HOUSING TAX INCREMENT INTEREST OTHER TOTAL VILLAGE LOW AND MOD INCOME HOUSING SCCRA OPERATIONS / DEBT SERVICE TAX INCREMENT INTEREST OTHER TOTAL SCCRDA OPERATIONS / DEBT SERVICE SCCRA LOW AND MOD INCOME HOUSING TAX INCREMENT INTEREST TOTAL SCCRDA LOW AND MOD INCOME HOUSING TOTAL REDEVELOPMENT FUNDS ACTUAL REVENUE 2009-10 $9,053 2,823,918 18,277 5,396,000 8,247,248 705,980 146,987 852,967 21,057 1,427,000 1,448,057 8,027 8,027 $10,556,299 PROJECTED REVENUE 2010-11 $14,000 2,700,000 43,000 10,000 2,767,000 681,250 260,000 941,250 57,000 0 57,000 0 $3,765,250 ESTIMATED REVENUE 2011-12 $14,000 2,665,600 47,200 0 2,726,800 600,000 100,000 700,000 30,000 0 30,000 6,000 6,000 $3,462,800 AS% OF FY 10-11 PROJECTED 0.0% -1.3% 9.8% -100.0% -1.5% -11.9% -61.5% 0.0% -25.6% 0.0% -47.4% 0.0% -47.4% 0.0% 0.0% 0.0% -8.0% DIFFERENCE 2010-11 TO 2011-12 $0 (34,400) 4,200 (10,000) (40,200) (81,250) (160,000) 0 (241,250) 0 (27,000) 0 (27,000) 0 6,000 6,000 ($302,450) [TOTAL OPERATING $201,703,865 $196,362,104 $197,167,953 $805,849 | B-25 CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE Exhibit 4 DEPARTMENT GENERAL FUND POLICY AND LEADERSHIP GROUP CITY COUNCIL CITY ATTORNEY CITY CLERK CITY MANAGER CITY TREASURER COMMUNICATIONS RECORDS MANAGEMENT TOTAL POLICY AND LEADERSHIP GROUP INTERNAL SERVICES FINANCE HUMAN RESOURCES PROPERTY AND ENVIROMENTAL MANAGEMENT TOTAL ADMINISTRATIVE SERVICES COMMUNITY DEVELOPMENT COMMUNITY AND ECONOMIC DEVELOPMENT HOUSING AND NEIGHBORHOOD SERVICES TOTAL COMMUNITY DEVELOPMENT COMMUNITY SERVICES LIBRARY AND ARTS PARKS AND RECREATION TOTAL COMMUNITY SERVICES PUBLIC SAFETY FIRE POLICE TOTAL PUBLIC SAFETY PUBLIC WORKS TRANSPORTATION STORM DRAIN ENGINEERING TOTAL PUBLIC WORKS 2008-09 ACTUAL* $356,218 1,288,406 121,958 1 ,457,435 185,441 674,407 844,886 4,928,751 3,412,776 2,233,597 5,068,488 10,714,861 8,257,699 356,691 8,614,390 10,554,221 12,546,071 23,100,292 17,358,775 27,435,164 44,793,939 9,415,301 283,705 $9,699,006 2009-10 ACTUALS * $333,004 1,294,939 105,532 1,598,471 189,895 765,065 777,147 5,064,053 3,290,451 2,255,036 4,637,869 10,183,356 8,141,073 390,147 8,531,220 10,101,250 12,223,237 22,324,487 17,111,580 27,391 ,882 44,503,462 9,023,875 279,592 $9,303,467 2010-11 ESTIMATED EXPENDITURES $351,108 1,320,616 176,214 1,341,748 180,644 784,573 761 ,686 4,916,589 3,341,585 2,360,346 5,206,628 10,908,559 7,005,702 361,118 7,366,820 9,946,230 11,530,978 21,477,208 16,067,247 27,731,971 43,799,218 9,286,686 255,125 $9,541,811 2010-11 BUDGET $373,363 1,312,291 274,841 1,570,323 196,488 691,628 863,024 5,281,958 3,298,808 2,374,297 4,802,415 10,475,520 7,433,968 430,182 7,864,150 10,418,723 12,428,761 22,847,484 16,228,573 28,162,339 44,390,912 9,116,428 262,108 $9,378,536 2011-12 BUDGET $372,344 1,336,460 139,803 1,491,771 197,922 679,661 698,511 4,916,472 3,383,709 2,294,266 4,738,531 10,416,506 7,161,357 550,245 7,711,602 10,412,121 13,020,229 23,432,350 16,813,059 28,204,533 45,017,592 8,883,352 281,317 $9,164,669 %INCR (DEC) 10-11 BUD TO 11-12 BUD -0.3% 1.8% -49.1% -5.0% 0.7% -1.7% -19.1% -6.9% 2.6% -3.4% -1 .3% -0.6% -3.7% 27.9% -1.9% -0.1% 4.8% 2.6% 3.6% 0.1% 1.4% -2.6% 7.3% -2.3% B-26 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 MANAGEMENT INCENTIVE PAY PROFESSIONAL SERVICES OTHER MISCSELLANEOUS EXPENDITURES PERSONNEL RELATED PROPERTY TAX & OTHER ADMINISTRATION TOTAL EXPEDNITURES TRANSFERS HOSP GROVE DEBT SERVICE INFRASTRUCTURE REPLACEMENT FUND MISCELLANEOUS TRANSFERS OUT TRANSFERS TO GOLF COURSE: DEBT SERVICE TRANSFERS TO GOLF COURSE: OPERATING SUBSIDY TRANSFER TO LLD#1 (MEDIANS & TREES) TRANSFER TO STORM WATER PROGRAM TOTAL TRANSFERS TOTAL MISCELLANEOUS NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND 2008-09 ACTUAL" $1,323 649,645 16,412 58,115 102,612 0 258,362 0 0 624,525 1,710,994 90,000 7,800,000 319,445 0 0 0 154,273 8,363,718 $10,074,712 111,925,951 0 $111,925,951 2009-10 ACTUALS * $1,483 22,000 0 55,081 42,231 0 428,523 0 0 660,807 1,210,125 0 6,538,000 3,137,463 0 0 0 177,000 9,852,463 $11,062,588 110,972,633 0 $110,972,633 2010-11 ESTIMATED EXPENDITURES $0 30,000 0 65,000 60,000 0 132,000 0 0 770,000 1,057,000 0 7,175,000 0 0 0 253,850 207,000 7,635,850 $8,692,850 106,703,055 0 $106,703,055 2010-11 BUDGET $0 0 0 73,800 160,000 0 152,500 6,066 0 670,000 1 ,062,366 0 7,175,000 0 0 0 253,850 207,000 7,635,850 $8,698,216 108,936,776 500,000 $109,436,776 2011-12 BUDGET $0 0 0 55,000 80,000 0 88,000 0 1,400,000 750,000 2,373,000 0 7,382,000 0 1,110,750 295,000 473,000 215,000 9,475,750 $1 1 ,848,750 112,507,941 500,000 $113,007,941 %INCR (DEC) 10-11 BUD TO 11-12 BUD - - -25.5% -50.0% - -42.3% -100.0% - 1 1 .9% 123.4% - 2.9% - - - 86.3% 3.9% 24.1% 36.2% 3.3% 0.0% 3.3% B-27 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 WORKERS' 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 SCCRA OPERATIONS / DEBT SVC SCCRA LOW/MOD INCOME HSNG TOTAL REDEVELOPMENT 2008-09 ACTUAL* $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 79,990 111,807 67,858 $2,307,832 2009-10 ACTUALS * $489,965 81,213 128,970 40,000 435,628 83,512 13,025 188,672 214,478 197,584 599,179 99,419 38,304 6,542 26,933 6,251,051 23,095 1,287,285 552,035 $10,756,890 $29,330,780 6,419,797 10,003,749 2,660,596 $48,414,922 $1,596,033 1,118,322 959,026 2,576,267 1,042,260 5,971,417 $13,263,325 $7,776,839 82,053 1,212,905 52,426 $9,124,223 2010-11 ESTIMATED EXPENDITURES $504,913 129,573 96,869 0 622,567 94,806 6,605 130,806 199,353 294,458 906,074 19,756 340,686 28,445 33,157 6,346,335 31,000 3,132,266 694,860 $13,612,529 $29,335,177 7,110,264 9,648,270 2,779,456 $48,873,167 $2,868,608 2,087,080 990,328 2,713,374 1,631,750 6,661.743 $16,952,883 $3,908,282 80,585 400,990 43,185 $4,433,042 2010-11 BUDGET $500,577 103,540 114,496 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 $10,941,705 $30,945,359 6,889,719 10,508,223 3,213,004 $51,556,305 $1,841,504 1,467,171 951,560 2,795,426 1,310,000 5,900,575 $14,266,236 $1,774,404 101,331 196,379 65,410 $2,137,524 2011-12 BUDGET $473,580 293,511 - 50,000 664,834 76,960 4,000 59,000 216,850 366,962 730,814 156,258 0 - 44,408 6,622,482 34,990 1,002,765 643,892 $11,441,306 $31 ,554,624 7,476,108 10,898,813 3,500,924 $53,430,469 $1,996,557 1,381,044 1,098,265 2,845,518 1,716,500 6,299,288 $15,337,172 $1,441,954 73,558 190,459 54,016 $1,759,987 %INCR (DEC) 10-11 BUD TO 11-12 BUD -5.4% 183.5% -100.0% 25.0% 0.1% -15.8% -37.5% - 10.0% -0.5% 7.4% 845.3% - -100.0% 5.4% 0.7% -14.6% 16.4% 5.2% 4.6% 2.0% 8.5% 3.7% 9.0% 3.6% 8.4% -5.9% 15.4% 1.8% 31 .0% 6.8% 7.5% -18.7% -27.4% -3.0% -17.4% -17.7% TOTAL OPERATING FUNDS $185,621,547 $192,531,993 $190,574,676 $188,338,546 $194,976,875 3.5% General Fund NonGF $113,007,941 81.968,934 $194,976,875 NOTE: Estimated expenditures may exceed Adopted Budget since they include prior year budget appropriations. * ACTUALS, I B-28 CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE DEPARTMENT GENERAL FUND POLICY AND LEADERSHIP GROUP CITY COUNCIL CITY ATTORNEY CITY CLERK CITY MANAGER CITY TREASURER COMMUNICATIONS RECORDS MANAGEMENT TOTAL POLICY AND LEADERSHIP GROUP INTERNAL SERVICES FINANCE HUMAN RESOURCES PROPERTY AND ENVIROMENTAL MANAGEMENT TOTAL ADMINISTRATIVE SERVICES COMMUNITY DEVELOPMENT COMMUNITY AND ECONOMIC DEVELOPMENT HOUSING AND NEIGHBORHOOD SERVICES TOTAL COMMUNITY DEVELOPMENT COMMUNITY SERVICES LIBRARY AND ARTS PARKS AND RECREATION TOTAL COMMUNITY SERVICES PUBLIC SAFETY FIRE POLICE TOTAL PUBLIC SAFETY PUBLIC WORKS TRANSPORTATION STORM DRAIN ENGINEERING TOTAL PUBLIC WORKS 2008-09 ACTUAL* $356,218 1 ,288,406 121,958 1 ,457,435 185,441 674,407 844,886 4,928,751 3,412,776 2,233,597 5,068,488 10,714,861 8,257,699 356,691 8,614,390 10,554,221 12,546,071 23,100,292 17,358,775 27,435,164 44,793,939 9,415,301 283,705 $9,699,006 2009-10 ACTUALS * $333,004 1 ,294,939 105,532 1,598,471 189,895 765,065 777,147 5,064,053 3,290,451 2,255,036 4,637,869 10,183,356 8,141,073 390,147 8,531,220 10,101,250 12,223,237 22,324,487 17,111,580 27,391 ,882 44,503,462 9,023,875 279,592 $9,303,467 2010-11 ESTIMATED EXPENDITURES $351,108 1,320,616 176,214 1,341,748 180,644 784,573 761,686 4,916,589 3,341,585 2,360,346 5,206,628 10,908,559 7,005,702 361,118 7,366,820 9,946,230 1 1 ,530,978 21,477,208 16,067,247 27,731,971 43,799,218 9,286,686 255,125 $9,541,811 2010-11 BUDGET $373,363 1,312,291 274,841 1,570,323 196,488 691,628 863,024 5,281,958 3,298,808 2,374,297 4,802,415 10,475,520 7,433,968 430,182 7,864,150 10,418,723 12,428,761 22,847,484 16,228,573 28,162,339 44,390,912 9,116,428 262,108 $9,378,536 2011-12 BUDGET $372,344 1,336,460 139,803 1,491,771 197,922 679,661 698,511 4,916,472 3,383,709 2,294,266 4,738,531 10,416,506 7,161,357 550,245 7,711,602 10,412,121 13,020,229 23,432,350 16,813,059 28,204,533 45,017,592 8,883,352 281,317 $9,164,669 %INCR (DEC) 10-11 BUD TO 11-12 BUD -0.3% 1.8% -49.1% -5.0% 0.7% -1.7% -19.1% -6.9% 2.6% -3.4% -1.3% -0.6% -3.7% 27.9% -1 .9% -0.1% 4.8% 2.6% 3.6% 0.1% 1.4% -2.6% 7.3% -2.3% B-26 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 MANAGEMENT INCENTIVE PAY PROFESSIONAL SERVICES OTHER MISCSELLANEOUS EXPENDITURES PERSONNEL RELATED PROPERTY TAX & OTHER ADMINISTRATION TOTAL EXPEDNITURES TRANSFERS HOSP GROVE DEBT SERVICE INFRASTRUCTURE REPLACEMENT FUND MISCELLANEOUS TRANSFERS OUT TRANSFERS TO GOLF COURSE: DEBT SERVICE 2008-09 2009-10 ACTUAL* ACTUALS * $1,323 $1,483 649,645 22,000 16,412 0 58,115 55,081 102,612 42,231 0 0 258,362 428,523 0 0 0 0 624,525 660,807 1,710,994 1,210,125 90,000 0 7,800,000 6,538,000 319,445 3,137,463 0 0 TRANSFERS TO GOLF COURSE: OPERATING SUBSIDY 0 0 TRANSFER TO LLD#1 (MEDIANS & TREES) TRANSFER TO STORM WATER PROGRAM TOTAL TRANSFERS TOTAL MISCELLANEOUS NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND 0 0 154,273 177,000 8,363,718 9,852,463 $10,074,712 $11,062,588 111,925,951 110,972,633 0 0 $111,925,951 $110,972,633 2010-11 ESTIMATED EXPENDITURES $0 30,000 0 65,000 60,000 0 132,000 0 0 770,000 1 ,057,000 0 7,175,000 0 0 0 253,850 207,000 7,635,850 $8,692,850 106,703,055 0 $106,703,055 2010-11 BUDGET $0 0 0 73,800 160,000 0 152,500 6,066 0 670,000 1 ,062,366 0 7,175,000 0 0 0 253,850 207,000 7,635,850 $8,698,216 108,936,776 500,000 $109,436,776 2011-12 BUDGET $0 0 0 55,000 80,000 0 88,000 0 1,400,000 750,000 2,373,000 0 7,382,000 0 1,110,750 295,000 473,000 215,000 9,475,750 $11,848,750 112,507,941 500,000 $113,007,941 %INCR (DEC) 10-11 BUD TO 11-12 BUD - - -25.5% -50.0% - -42.3% -100.0% - 11.9% 123.4% - 2.9% - - 86.3% 3.9% 24.1% 36.2% 3.3% 0.0% 3.3% B-27 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 WORKERS' 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 SCCRA OPERATIONS / DEBT SVC SCCRA LOW/MOD INCOME HSNG TOTAL REDEVELOPMENT 2008-09 ACTUAL* $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 1 1 ,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 1 1 1 ,807 67,858 $2,307,832 2009-10 ACTUALS * $489,965 81,213 128,970 40,000 435,628 83,512 13,025 188,672 214,478 197,584 599,179 99,419 38,304 6,542 26,933 6,251,051 23,095 1,287,285 552,035 $10,756,890 $29,330,780 6,419,797 10,003,749 2,660,596 $48,414,922 $1 ,596,033 1,118,322 959,026 2,576,267 1,042,260 5,971,417 $13,263,325 $7,776,839 82,053 1,212,905 52,426 $9,124,223 2010-11 ESTIMATED EXPENDITURES $504,913 129,573 96,869 0 622,567 94,806 6,605 130,806 199,353 294,458 906,074 19,756 340,686 28,445 33,157 6,346,335 31,000 3,132,266 694,860 $13,612,529 $29,335,177 7,110,264 9,648,270 2,779,456 $48,873,167 $2,868,608 2,087,080 990,328 2,713,374 1,631,750 6,661,743 $16,952,883 $3,908,282 80,585 400,990 43,185 $4,433,042 2010-11 BUDGET $500,577 103,540 114,496 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 $10,941,705 $30,945,359 6,889,719 10,508,223 3,213,004 $51,556,305 $1,841,504 1,467,171 951,560 2,795,426 1,310,000 5,900,575 $14,266,236 $1,774,404 101,331 196,379 65,410 $2,137,524 2011-12 BUDGET $473,580 293,511 - 50,000 664,834 76,960 4,000 59,000 216,850 366,962 730,814 156,258 0 - 44,408 6,622,482 34,990 1,002,765 643,892 $11,441,306 $31 ,554,624 7,476,108 10,898,813 3,500,924 $53,430,469 $1,996,557 1,381,044 1,098,265 2,845,518 1,716,500 6,299,288 $15,337,172 $1,441,954 73,558 190,459 54,016 $1,759,987 %INCR (DEC) 10-11 BUD TO 11-12 BUD -5.4% 183.5% -100.0% 25.0% 0.1% -15.8% -37.5% 10.0% -0.5% 7.4% 845.3% - -100.0% 5.4% 0.7% -14.6% 16.4% 5.2% 4.6% 2.0% 8.5% 3.7% 9.0% 3.6% 8.4% -5.9% 15.4% 1.8% 31.0% 6.8% 7.5% -18.7% -27.4% -3.0% -17.4% -17.7% [TOTAL OPERATING FUNDS $185,621,547 $192,531,993 $190,574,676 $188,338,546 $194,976,875 3.5% General Fund NonGF $113,007,941 81,968,934 $194,976,875 NOTE: Estimated expenditures may exceed Adopted Budget since they include prior year budget appropriations. * ACTUALS, E B-28 Exhibit i PERSONNEL ALLOCATIONS FINAL BUDGET 2009-10 POLICY 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 HUMAN RESOURCES | 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 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 62.35 71.95 712.75 FINAL PRELIMINARY 2011-12 BUDGET BUDGET REQUESTED 2010-11 2011-12 CHANGES 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 1.00 0.75 7.00 2.75 7.00 6.25 50.00 30.50 87.75 13.00 9.00 22.50 51.25 70.95 162.00 39.60 54.40 68.55 684.25 0.00 0.00 (1.00) 0.00 0.00 (1.75) (4.00) 0.00 (1.00) 2.00 0.00 0.00 (1.00) (1.00) 0.00 (2.00) (4.00) (1.00) (14.75) 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 2009-10 707.50 5.25 3.50 (12.00) 138.44 842.69 CATEGORY 2010-11 694.50 4.50 0.00 (6.00) 138.94 831.94 2011-12 679.75 4.50 0.00 (3.00) 139.74 820.99 Difference (14.75) 0.00 0.00 N/A 0.80 (13.95) B-29 O PROPOSED CHANGES TO THE FY 2011-12 MASTER FEE SCHEDULE EXHIBITS DEPT CED CED CED CED CED CED CED CED CED CED CED FINANCE FIRE LIBRARY LIBRARY LIBRARY P&L PARKS & REC PARKS & REC POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE FEE CATEGORY BUILDING PERMIT FEES BUILDING PERMIT FEES BUILDING PERMIT FEES BUILDING PERMIT FEES BUILDING PERMIT FEES BUILDING PERMIT FEES BUILDING PERMIT FEES BUILDING PERMIT FEES FEE INCREASES CURRENT FEE DESCRIPTION CURRENT FEE Fish & Game Fee- EIR- Set by Department of Fish and Game $ 2,842 Fish & Game Fee - Negative Declaration - Set by Department of Fish and Game $ 2,060 Reapportionment Fees for 1911 Act Assessment Districts $ 450 Total Valuation -$1 to $500 $ 15.28 Total Valuation - $1,000,001 and up - for the first $1,000,000 plus $2.20 for each additional $1,000 or fraction thereof $ 3,645.69 Total Valuation - $100,001 to $500,000 - for the first $100,000 plus $3.92 for each additional $1,000, or fraction thereof, to and including $500,000. $ 645.93 Total Valuation - $2,001 to $25,000 - for the first $2,000 plus $9.80 for each additional $1,000, or fraction thereof, to and including $25,000 $ 45.01 Total Valuation - $25,001 to $50,000 - for the first $25,000 plus $7.07 for each additional $1,000, or fraction thereof, to and including $50,000 $ 254.31 Total Valuation - $50,001 to $100,000 - for the first $50,000 plus $4.90 for each additional $1,000, or fraction thereof, to and including $100,000 $ 418.43 Total Valuation - $500,001 to $1,000,000 - for the first $500,000 plus $3.32 for each additional $1,000, or fraction thereof, to and including $1,000,000 $ 2,101.93 Total Valuation - $501 to $2,000 - for the first $500 plus $2.13 for each additional $100 or fraction thereof, to and including $2,000 $ 15.28 PROPOSED FEE $2,889.25 $2,094 Actual Cost $16.45 $3,926.12 $695.62 FEE CHANGE ($) $ 47.25 $ 34.00 N/A $ 1.17" $ 280.43 $ 49.69 $48.47: $ 3.46 $273.87 $ 19.56' $450.62 $2,263.62 $16.45 Community Facilities District Annexation $ 1,271 $ 1,752 FIRE PROTECTION SYSTEM INSTALLATION FEES Other Fixed Fire Systems - Paint Spray Booth - Plan Review $ 80 J $ 145 SCHULMAN AUDITORIUM AUDIO SERVICES SCHULMAN AUDITORIUM VIDEO SERVICES SCHULMAN AUDITORIUM VIDEO SERVICES COMMUNICATIONS COMMUNITY GARDEN COMMUNITY GARDEN PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION ^ PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION PARKING VIOLATION Audio - Eight Microphone Set-up -Per Hour $ 100 $ 120 Video -CD/DVD -Copies -Each $ 12 $ 20 Video -One Camera Shoot- Per Hour $ 37.50 $ 38 Communications - DVD Copy $ 15 Community Garden-Annual Fee-Non Resident $ 60 Community Garden-Annual Fee-Resident $ 60 21113 (a) - Veh/Anim public on grounds $ 25 21211 -Bike lane $ 35 $ 20 $ 350 $ 250 $ 38 $ 50 22500 (a)- In intersection $ 25 $ 38 22500 (b)- In cross walk $ 25;$ 38 22500 (d) - Fire station driveway $ 25 22500 (e) - Driveway , $ 25 22500 (f)- Sidewalk $ 25 22500 (g) - Obstructing traffic $ 25 ^$ 38 $ 38 $ 38 $ 38 22500 (h)- Double parking $ 25 | $ 38 22500 (i)- Bus zone $ 250 22500 (j)- Tube or tunnel $ 25 22500 (k) - Bridge [$ 25 22500 (1) - Blocking Disabled $ 275 22500 c- Red curb $ 25 22500.1 -Fire lane $ 35 22502 - 18" from curb/wrong way $ 25 $ 260 $ " 38 $ 38 $ 320 $ " ~38 $ 50 $ 38 22507.8- Disable space/block access $ 330 !$ 340 22514 -Fire hydrant $ 25 i $ 38 22515 -Unattended vehicle $ 25,$ 38 22516- Locked vehicle/passgr inside $ 35 $ 50 22517 - Open/close door in traffic $ 35 22520 - Stopping on freeway $ 25 22520.5 -Vending from Hwy ;$ 35 22521 -> 7. 5ft from RR tracks $ 25 22522 -3ft from handicap ramp $ 275 $ 50 $ 38 $ 50 $ 38 $ 320 22523 -Abandoned vehicle $ 100 $ 128 22526- Blocking intersection $ 50 $ 68 23226 - Store open container/pass comp $ 35 $ 50 23333 - Stop/park in vehicle crossing $ 25 j $ 38 24003 -Veh.w/unlawful lighting device $ 25 $ 38 24401 - Dimmed lights on parked veh $ 30 24604- Lamp or flag on projections $ 25 24607 -Reflectors on rear $ 25 $ 44 $ 38 $ 38 $ 32.19 $ 161.69 $ 1.17 $ 481.00 $ 65.00 $ 20 $ 8 $ 1 $ 5.00 $ 290 $ 190 $ 13"$ ' " 15 "S""" 13 $ 13 $ 13 $ 13 $ 13" $ 13 $ 13 $ 10 $ 13"$ 13" $"" 45 "$"" ~"l3 $ 15 $ 13 $ 10 $ 13 $ " 13 $ 15 $ "•;"«. $ 13 $ 15 $ 13 $ 45 $ " 28 $ 18 $ 15 $ 13 $ 13"$""""" i~4 $ 13 $ 13 24608 - Reflectors on front and sides $ 25 $ 38 $ 13 25250 -Unlawful flashing lights 1$ 30;$ 44 25251 -Flashing lights required $ 30 25300 Warn device disabled, parked veh $ 30 26451 -Set parking brake $ 25 27155- Fuel tank caps ^$ 25 4462 (b)- Wrong veh reg $ 100 5200- Plates front/back $ 25 5201 - Position of plate :$ 25 5204 (a) - Tabs ' $ 25 72 hr parking $ 50 Alley parking • $ 35 Comm veh in resd area $ 35 $ 44 $ 44 $ 38 $ 38 $ 100$ ' ' " Ts T~" " 38 Y " 38 $ 68"S " ' 50~ $ 50 Police - Fingerprinting Fees $ 23 , $ 25 Safety zone $ 35 $ 50 $ 14 $ 14 $ 14 $ 13$ "~ 13 $ "-" $""" 'l3~ $ " 13" $ 13S" 18" $ 15$ "" "is" $ 2.00 $ 15 FEE CHANGE (%) 1.6% 1.6% N/A 7.1% 7.1% 7.1% 7.1% 7.1% 7.1% 7.1% 7.1% 27.5% 44.8% 16.7% 40.0% 1.3% 25.0% 82.9% 76.0% 34.2% 30.0% 34.2% 34.2% 34.2% 34.2% 34.2% 34.2% 34.2% 3.8% 34.2% 34.2% 14.1% 34.2% 30.0% 34.2% 2.9% 34.2% 34.2% 30.0% 30.0% 34.2% 30.0% 34.2% 14.1% 21.9% 26.5% 30.0% 34.2% 34.2% 31.8% 34.2% 34.2% 34.2% 31.8% 31.8% 31.8% 34.2% 34.2% 0.0% 34.2% 34.2% 34.2% 26.5% 30.0% 30.0% 8.0% 30.0% PROPOSED CHANGES TO THE FY 2011-12 MASTER FEE SCHEDULE EXHIBITS DEPT FEE CATEGORY CED CED CED CED CED CED CED CED CED i CED CED CED CED CED CED CED CED CED CED CED CED ' PARKS & REC iCARRILLO RANCH (HOURLY RATES) PARKS & REC CARRILLO RANCH (HOURLY RATES) PARKS & REC .CARRILLO RANCH (HOURLY RATES) PARKS & REC 'CARRILLO RANCH (HOURLY RATES) PARKS & REC ; CARRILLO RANCH (HOURLY RATES) PARKS & REC .CARRILLO RANCH (HOURLY RATES) NEW FEES CURRENT FEE DESCRIPTION Coastal Development Permit-SCCRA Green Building Standards Plancheck and Inspection Plumbing, Electrical and Mechanical Permit (not combined with Building Permits) Retaining Wall Plancheck (Valuation $250,000+) Retaining Wall Plancheck (Valuation $50,001-$250,000) Retaining Wall Plancheck (Valuation=0-$50,000) SCCRA Amendment (Major) SCCRA Permit (Admin.) SCCRA Permit (Major) SCCRA Permit (Minor) SCCRA Permit Amendment (Admin.) SCCRA Permit Amendment (Minor) SCCRA Permit Appeal - City Council SCCRA Permit Appeal - Planning SCCRA Permit Extension (Major) SCCRA Permit Extension (Minor) SCCRA Permit Variance (Minor or Major) SCCRA Permit Variance Administrative SCCRA Sidewalk Sign/Outdoor Display SCCRA Sign Program SCCRA Sign Program Amendment Carrilto Ranch Barn - Hourly Rate - Category A Carrilio Ranch Barn - Hourly Rate - Category B Carrillo Ranch Barn - Hourly Rate - Category C Carrilio Ranch Barn - Hourly Rate - Category D Carrillo Ranch Barn - Hourly Rate - Category E Carrilio Ranch Barn - Hourly Rate - Category F PROPOSED FEE $ 401 $ 150 $ 150 0.5% of Engineer's Estimate ($2,000 min.] $500 + 0.5% of Engineer's Estimate $ 500 $ 1,378 $ 634 $ 3,274 $ 1,507 $ 136 $ 584 $ 585 $ 529 $ 259 $ 222 $ 389 $ 133 $ 56 $ 118 $ "" 77 N/C $ 30 $ 47 $ 64 $ 83 $ 96 All Receive For the Lisa Hildabrand C A v/ CCvf Subject: Community Garden Cost of Service DatefrfO City Manager U/- — - Lisa: During CifY Council briefings yesterday, one Council Member requested a copy of the cost of service analysis that was conducted for the Harold E. Smerdu Community Garden. Attached is the complete analysis that lead to the recommended rate adjustment. Please let me know if you would like additional information. // . .1 John Coat es " ;/ Assistant City Manager CARLSBAD 1200 Carlsbad Village Drive Carlsbad, CA 92008 www.carlsbadca.gov P: (760)4-34.2821 F: (760)720.9461 E: iohn.coates@carlsbadca.gov CITY OF CARLSBAD Harold E. Smerdu Community Garden Pyramid Model Cost Recovery Data Level 5 - High Individual Benefit FY 11-12 Budget Proposal Staff (Non-Mgmt) Office Assistant Sr. Office Specialist Maintenance Worker 11 Maintenance Worker III Maintenance Worker III Tree Trimmer II Tree Trimmer II Tree Trimmer Leadworker Mainteanance Aide Annual Sub-Total: Staff Function Admin Lead Admin Support Projects/Repairs Quarterly Maintenance Irrigation Work Greenwaste Tending Wood Chip Dumping Wood Chip Dumping Trash/Rec Collection Annual Amount 156 Hrs 13Hrs 6 Hrs 20 Hrs 12 Hrs 26 Hrs 3 Hrs 3 Hrs 39 Hrs Unit Cost $24.30 $33.23 $34.83 $40.25 $40.25 $35.95 $35.95 $40.25 $30.30 Sub-Total $3,790 $432 $209 $805 $483 $935 $108 $121 $1,182 $8,065 Operations Item Supplies Equipment Utilities Dump Fees Annual Sub-Total: Operations Description Irrigation/Composters/ Fencing/Plants/Misc. Trucks/Tractors Potable Water Greenwaste/Trasn/Rec Annual Amount 12Mos 106 Hrs 12Mos 12Mos Unit Cost $225.00 $12.00 $415.00 $100.00 Sub-Total $2,700 $1,272 $4,980 $1,200 $10,152 Annual Expenditures Grand Total - Community Garden $18,217 Recovery: Non-Resident Recovery: Resident Total Recovery Annual Sub-Total* (as currently assigned) 8 44 52 Percentage of Recovery 99.9% 71.4% Average: 75.8% $350.00 $250.00 $2,800 $11,000 $13,800 •Per Plot @ 52 Plots FY 2011­12 OperatingBudgetWorkshopBudget Workshop Tonight’sPresentationTonight’s PresentationEii•Economic overview •City revenuesBd tt•Budget requests•City prioritiesUtilitii•Utilities overview•City feesPOti•Program Options2 BudgetCalendarBudget Calendar•CouncilMeetingsCouncil Meetings–May 10 –CIP workshop–June  7 –Operating budget workshoppggp•Set public hearing for June 21st–June 21 – Public hearing and adoption of Fiscal Year 2011‐12 Operating and Capital Budgets•Other Public Meetings–June 9 – Citizens Budget Workshop CitizensBudgetWorkshopCitizens Budget Workshop•When:ThursdayJune9When:Thursday, June 9•Where: City of CarlsbaddCFaraday Center1635 Faraday Ave. R173BRoom 173B•Time: 6 p.m.For additional informationCity of Carlsbad Finance Department760‐602‐24307606022430 FY2011­12BudgetFY 201112 Budget•BalancedbudgetBalanced budget–Preserves core city services•Someimprovementsinlocaleconomy•Some improvements in local economy–Still fragile–State budget, other concerns remain•Careful planning, responsible management City of CarlsbadFY201112CbidBdFY 2011­12 Combined BudgetCapital25%25%$260 2million$260.2millionOperating Budget – 75%Capital – 25%6 NationalOutlookNational Outlook•TepidRecoveryTepid Recovery•Housing•Inflation•Interest Rates UNITED STATES GDP GROWTH RATEAnnual GDP Growth Adjusted by Inflation3.2%23%2.9%5.0%3.7%2.6%3.1%4.0%6.0%0.9%2.3%0.6%1.6%1.7%1.8%0.0%2.0%‐0.7%‐0.7%‐4.0%‐2.0%‐4.0%‐6.8%‐4.9%‐6.0%‐8.0%2007 2008 2009 2010 2011source: TradingEconomics.com; Bureau of Economic Analysis8 StatePerspectiveState Perspective•$10.8BillionDeficit$10.8 Billion Deficit•Legislative Impacts–ReductioninLibraryFundingReduction in Library Funding–COPS Grant Elimination–BookingFees–Booking Fees•Potential Impact to RDA Jan07Jan 07139.6 ↙April 10109.2 Mar 09100.7 ↙10 Carlsbad’sEconomicProfileCarlsbad s Economic Profile•HomepricesHome prices•Taxable transactionsi•Tourism 210,000 PROJECTED EXPENDITURES (2007 FORECAST) VS. PROJECTED REVENUES (2012 FORECAST)180,000 190,000 200,000 ($34,008)($34,141)150 000160,000 170,000 (In Thousands)($31,117)($32,586)($32,093)130,000 140,000 150,000 Dollars Proj. Exp. (2007)Proj. Rev. (2012)($27 334)($29,539)($32,928)($30,994)($32,337)100,000 110,000 120,000 ($27,334)2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Proj. Exp. (2007)140,901 147,265 153,961 160,980 168,220 174,948 181,946 189,224 196,793 204,665 Proj. Rev. (2012)113,567 117,726 122,967 128,052 135,883 143,831 149,360 157,131 162,785 170,524 Fiscal Years General Fund RevenuesFiscal Year 2011­12 $113.6 million* Four sources make up 80%$13 14 Assessed Values and PropertyTaxesProperty Taxes60.0 25.0 40.0 50.0 15.0 20.0 MilBil20.0 30.0 10.0 llionsllions‐10.0 ‐5.0 ‐‐FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012eAV ResidentialAV Com/IndustProperty Taxes15 2010 Sales Taxes by Category******Fivesourcesmakeup64%16Five sources make up 64% $HISTORIC SALES TAX BY GEOGRAPHIC AREABenchmark Year$6,000,000$7,000,000$4,000,000$5,000,000Carlsbad Redevelopment Area$3,000,000pAuto MallPlaza Camino RealCarlsbad Premium OutletsThe Forum$1,000,000$2,000,000$017 Transient Occupancy Taxes16101214164680$ Millions022004 2006 2008 2010 2012eFiscal YearFiscal Year18 FranchiseTaxesFranchise Taxes19 FY 2011­12 Operating Revenues bFndTpeby Fund TypeInternal ServiceEnterprise27%8%General57%SilRedevelopment2%Special Revenue6%$197.2 million20 2011­12OtiBd tOperating Budget RequestsRequestsJudiVincentFinanceManagerJudi Vincent, Finance Manager21 OperatingBudgetProcessCity Council’s goals, visions,  & priority projectsOperating Budget ProcessCtyCou c sgoa s,so s,&potyp ojects10 year forecast monitoredBudget policies set for new fiscal yearDepartmentssubmitrequeststoFinanceDepartments submit requests to FinanceBudget reviews and recommendationstoCityCouncilto City CouncilCity Council adopts budget FY2011­12BudgetPoliciesFY 201112 Budget Policies•Provide a balanced budgetlfbl dbdff•Plan for a balanced budget for future years•Minimize service level impacts to citizens23 FY 2011­12 Budget Policies (d)(continued)•No new positions•No growth in maintenance & operations•NonewprogramsunlesslegallymandatedNo new programs unless legally mandated•Identify personnel and operating reductions in ordertooffsetknownbudgetincreasesorder to offset known budget increases•Budget discretionary items at minimal levels24 FY2011­12PositionChangesFY 201112 Position Changes•Eliminationof14 75full‐timepositions:Elimination of 14.75 fulltime positions:Oltitili i t d–Only vacant positions eliminated–Four were previously unfundedNtifitl$1illi–Net savings of approximately $1 million FY2011­12PositionChanges(continued)FY 201112 Position Changes (continued)•Totalcitywidefull‐timepositioncount:Total citywide fulltime position count:699 00FY201011699.00  FY 2010‐11 ( 14.75) Less: eliminated positions684 25FY201112Ttl684.25   FY 2011‐12 Total26 FY2011­12BudgetOverviewFY 201112 Budget Overview•Totalproposedbudgetcitywide‐$194 9millionTotal  proposed budget citywide $194.9 million•Increase of $6.6 million (3.5 %) from FY 2010‐11 AdoptedBudget:Adopted Budget:•Significant Fund Increases:•$3.6 million –General Fund•$1.8 million –Enterprise Funds•$1 0millionInternalServiceFunds•$1.0 million –Internal Service Funds27 FY 2011­12 Operating BudgetpggTotal Budget = $194.9 million28 General Fund ddBudget Expenditure History29 General Fund Budget ComparisongpTotal $109.4In Millions InfrastructureReplacementFundInfrastructure Replacement Fund•Funds the replacement of buildings and facilities (non water or sewer)•Annual contribution–FY 2008‐09 –$7.5 million–FY 2009‐10 – $6.5 million–FY 2010‐11 –$7.2 million–FY 2011‐12 – $7.4 million31 FY 2011­12 General FundTotal Budget = $113.0 million32 General Fund Budget Recap Ge e aududgetecapFY 2011­12Revenues $ 113.6 million$Budget Requests $ 113.0 millionProjected Surplus $    0.6 million33 GeneralFundBalanceGeneral Fund BalanceEstimated Balance at 7/01/11 $  53.2 millionPlus:   FY 2011‐12 Surplus 0.6 millionLess:FY201112Advances01millionLess:   FY 2011‐12 Advances‐0.1 millionEstimatedBalanceat$53 7millionEstimated Balance at                   $ 53.7 million6/30/12                                            34 FY 2011­12 SilRFdSpecial Revenue FundsTotal Budget = $11.4 million35 FY 2011­12ldSpecial Revenue FundsExpenditureHighlights:Expenditure Highlights:•Section 8 Rental Assistance ‐$6.6 millionSilii$2 9illi•Special Assessment Districts ‐$2.9 million•Community Dev. Block Grant ‐$0.7 million•Community Activity Grants ‐$50,000 FY2011­12CitywidePrioritiesFY 201112 Citywide Priorities•SustainingFinancialHealthSustaining Financial Health•Fostering a Strong EconomySfdffi ii•Safe and Efficient Transportation•Parks, Open Space and Trails•Strong, Vibrant Neighborhoods and Community Connectionsy Sustaining the City’s FinancialHealthCthiHFinancial HealthCynthia HaasDeputy City Manager FinancialHealthFinancial Health•SoundpoliciesSound policies•Responsible budget managementifi i lf•Long range view, financial forecasts•Anticipate changes, make adjustments FinancialHealthFinancial Health•FocusreductionsinareaswithFocus reductions in areas with least effect on public services.•Nosignificantreductionsin•No significant reductions in –LibrariesRi–Recreation programs–Public safety–City offices open 5 days a week FinancialHealthFinancial Health•ContinuedinvestmentininfrastructureContinued investment in infrastructure FinancialHealthFinancial Health•PensionreformPension reform•Reduced costs through energy efficiencynewtechnologiesefficiency, new technologies, •Reduced fleet costs•Service delivery alternatives Fostering a StrongEconomyStrong EconomyGary BarberioCommunity & Economic Development EconomicDevelopmentEconomic Development•NewEconomicDevelopmentManagerNew Economic Development Manager–Kathy Dodson EconomicDevelopmentEconomic Development•PartneringwiththebusinesscommunityPartnering with the business community–Carlsbad Chamber of CommerceSanDiegoNorthEconomicDevelopmentCouncil–San Diego North Economic Development Council–City Council/ staff/ business outreach meetings EconomicDevelopmentEconomic Development•Businessretention/expansionandattractionBusiness retention/expansion and attraction–Build on past successBusinessAssistanceTeamCityCouncil–Business Assistance Team, City Council–Develop and implement defined programBkf–Brokers forum–Establish stronger relationships EconomicDevelopmentEconomic Development•Retention/ExpansionRetention/ Expansion •AttractionAt–Aptera–BREG–Anchor Audio EconomicDevelopmentEconomic Development•ExpandavailableinformationExpand available information–Focused communication strategyEnhancedeconomicdevelopmentwebsite–Enhanced economic development website •Real estate availability•FocuseddataanddemographicsFocused data and demographics EconomicDevelopmentEconomic Development•StreamlinedevelopmentandpermitprocessStreamline development and permit process–Development Review Process improvementsCarCountryCarlsbad–Car Country Carlsbad–Business License Process review EconomicDevelopmentEconomic Development•PartneringwiththebusinesscommunityPartnering with the business community–Village partnership initiative Safe and Efficient TransportationTransportationSkip HammannTransportation Department TransportationTransportation•WekeepCarlsbadmovingbyprovidingaWe keep Carlsbad moving by providing a comprehensive transportation system that is:–Intelligentlydesigned–Intelligently designed–Proactively maintainedProfessionallymanaged–Professionally managed TrafficManagementTraffic Management TrafficManagementTraffic Management•RevisedTrafficSignalProgramRevised Traffic Signal Program–Equipment upgrades•VideodetectionVideo detection–Interconnect signals–Trafficmanagementcenter–Traffic management center TrafficManagementTraffic Management•ResidentialTrafficManagementProgramResidential Traffic Management Program–Cost effective tools•StopsignsStop signs•Speed cushions (bumps) TrafficManagementTraffic Management TrafficManagementTraffic Management TrafficManagementTraffic Management•PedestrianfriendlycrossingsPedestrian friendly crossings–Citywide•Audible/countdownsignalsAudible/ countdown signals–Village area – opportunities–CarlsbadBlvd–Carlsbad Blvd.•Oak to Tamarack  TrafficManagementTraffic Management Parks, Open Space and TrailsCh iHltiChris HazeltineParks & Recreation CarlsbadBoulevardProjectCarlsbad Boulevard  Project•PartnershipwithStateParksPartnership with State Parks•Create more beachfront land for the public to enjoyenjoy•Community gathering places, shops, new lkihlhbhkiwalking paths along the beach, more parking•Early stages AlgaNorteCommunityParkAlga Norte Community Park•ProjectmovingforwardProject moving forward•Diverse recreation options complementcommunityneedscomplement community needs•Exploring partnerships AlgaNorteCommunityParkAlga Norte Community Park AlgaNorteCommunityParkAlga Norte Community Park AlgaNorteCommunityParkAlga Norte Community Park AlgaNorteCommunityParkAlga Norte Community Park CitywideTrailsandOpenSpaceCitywide Trails and Open Space •LakeCalaveraMasterPlanLake Calavera Master Plan•Volunteers and community partnershipspartnerships•Continue to maintain over a hi dfhi’ldthird of the city’s land as open space Strong, Vibrant Neighborhoods and CommunityConnectionsCommunity ConnectionsDebbie FountainHousing & Neighborhood Services NeighborhoodServicesNeighborhood Services•AscityapproachesbuildoutneedsareAs city approaches build out, needs are changing•Newdepartmentfocusedonneighborhood•New department focused on neighborhood servicesShihb h dhh•Strengthen neighborhoods through partnership and collaboration QualityofLifeQuality of Life•ProblemsolvingProblem solving•Code compliance/education i•Assistance programs•Grants•Family‐friendly events NeighborsHelpingNeighborsNeighbors Helping Neighbors•VolunteerprogramstrongerthaneverVolunteer program stronger than ever•Developing neighborhood mediation programihb h dl•Neighborhood clean‐up•Leadership FY 2011­12It lSiFdInternal Service FundsTotal Budget  = $15.3 million72 Enterprise FundsBudget RequestsFY 2011­12 Water Enterprise FY201112EditFY 2011­12 Expenditures$39 million74 WaterPurchaseCostIncreasesWater Purchase Cost Increases•Purchased Potable Water from San Diego County Water Authority–Wholesale water –8.3% increase–Fixed charges –18.7% increaseg•Purchased Recycled Water–25%increaseoverlast2years25% increase over last 2 years75 Wastewater EnterpriseFY201112ExpendituresFY 2011­12 Expenditures$10.9 million76 Wastewater EnterpriseIiOiIncreases in OperationsFY 2010­11 to FY 2011­12$390,590 (3.7%)•Replacement transfers – $230,000•InternalServiceFundcharges$240 000•Internal Service Fund charges –$240,000•Personnel & M&O reductions – ($80,000) 77 Solid Waste / Storm WaterEnterprise Budget RequestFY 2011­12 = $3.5 million$78 Utility Rate IncreasesyJanuary 2012EstimatesEstimates•Water rates –9% to 13% increase•Sewercharges6%increase•Sewer charges –6% increase79 Recommended Increases EffectiveffJanuary 1, 2012••Public notices mailed in OctoberPublic notices mailed in October••45 day noticing requirement for public 45 day noticing requirement for public hearinghearing••Rates effective January 1, 2012Rates effective January 1, 201280 FeeUpdateFee Update81 FeeDescriptionsFee Descriptions•General city feesy–Charged for the usage of city services and property•Development related service fees–Charged to recover the cost of staff time/materials llspent on development related activities•Development impact fees–Charged to recover  the cost that growth is anticipated to have on city infrastructure82 FeeEscalatorsFee Escalators•UpdatedbychangeinWestUrbanConsumerUpdated by change in West Urban Consumer Price Index (CPI)–Generalcityfees–General city fees–Development related service fees UdtdbhiEi iN•Updated by change in Engineering News Record Index (ENR)lf–Development impact fees83 AnnualIndexChangesAnnual Index Changes•West Urban CPICY200835%–CY 20083.5%–CY 2009‐0.4%–CY 2010 1.1%–Cumulative 4.2%•ENR IndexApril200964%–April 20096.4%–April 2010‐0.3%–April 2011 2.8%–Cumulative 9.1%•Recommend fees increase by 1 year index change84 Community&EconomicDevelopmentCommunity & Economic Development•FishandGameFeesFish and Game Fees•Reapportionment Fees for 1911 Act AssessmentDistrictsAssessment Districts•Building Permit Fees•SCCRDA Permitting LibraryFeesLibrary FeesShlAdiStPH$100$120CurrentProposed Schulman‐Audio Setup Per Hr. $100 $120Schulman‐CD/DVD Copies Each    $12 $20 AllfthffitdAll of these fees are for  non‐core items and services offered by the library Parks&RecreationFeesParks & Recreation FeesCommunity Garden  – Resident $60 $250Current Proposed Non‐resident $60 $350 Parks and Recreation lNew Facility FeesNew Fee: Carrillo Ranch Barn Rental:•CategoryA–NoChargeCategory A No Charge•Category B ‐$30•Category C ‐$47•Category D ‐$64•Category E ‐$83•Category F ‐$96 PoliceFeesPolice FeesRecords ‐Fingerprinting Fee $23 $25Current Proposed Addition to schedule of existing Parking Violation Fees. TrafficImpactFeesTraffic Impact Fees•Ordinance CS‐028 states “that the traffic impact fee shall be adjusted annually as part of the budget process, by 2% or the annual % change in the Caltrans Construction Cost Index, whicheverishigher”whichever is higher•Caltrans CCI was ‐0.8% so the TIF fees were increased by 2%•TIF fees will increase on average from $212  to $216 FY 2011­12PROGRAM OPTIONS1RegionalGeneralPermit1.  Regional General Permit2   CalPERS Funding Levels3diOi3.   LLD #1 Funding Options4.  ArtSplash Funding Request5.  Boys and Girls Club Funding Request6TreasuryFTEIncrease6.  Treasury FTE Increase BudgetCalendarBudget Calendar•CouncilMeetingsCouncil Meetings–May 10 –CIP workshop–June  7 –Operating budget workshoppggp•Set public hearing for June 21st–June 21 – Public hearing and adoption of Fiscal Year 2011‐12 Operating and Capital Budgets•Other Public Meetings–June 9 – Citizens Budget Workshop CitizensBudgetWorkshopCitizens Budget Workshop•When:ThursdayJune9When:Thursday, June 9•Where: City of CarlsbaddCFaraday Center1635 Faraday Ave. R173BRoom 173B•Time: 6 p.m.For additional informationCity of Carlsbad Finance Department760‐602‐24307606022430 FY 2011­12 OperatingBudgetWorkshopBudget Workshop