HomeMy WebLinkAbout2012-06-05; City Council; 20924; Fiscal year 2012-13 Preliminary Operating Budget WorkshopCITY OF CARLSBAD - AGENDA BILL
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Finance
Fiscal Year 2012-13 Preliminary
Operating Budget Workshop
DEPT. DIRECTOR
CITY ATTORNEY fj^
CITY MANAGER
RECOMMENDED ACTION:
Accept report. Set public hearing for June 26, 2012.
ITEM EXPLANATION:
The Operating Budget work session on June 5, 2012 is an opportunity for the City Council to
review the Fiscal Year 2012-13 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 22, 2012 City Council
meeting.
In addition to these meetings, a Citizens' Budget Workshop will be held on Thursday, June 7,
2012 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 2012-13 Operating Budget and Capital
Improvement Program is scheduled for the June 26, 2012 City Council meeting.
2012-13 BUDGET OVERVIEW:
The theme behind this year's budget development was for the city to continue to provide the
very best services to the community while finding operating efficiencies and reducing costs
wherever possible. The goal was to achieve a balanced budget for the coming fiscal year while
still maintaining the city's long-term financial health, ensuring that future costs can be met
without negatively impacting the services provided to the community. Significant ongoing
operating expenses were identified and incorporated in the FY 2012-13 budget where
necessary, to ensure the budget reflects the ongoing financial obligations of the city.
Due to economic conditions experienced over the past few years, the city has taken deliberate
measures to continue to allocate resources in a responsible manner, minimizing the impact to
users of city services. By planning ahead, the city was able to make adjustments to its budget
over the last several years to compensate for large decreases in revenues. As fixed costs like
utilities, insurance, and supplies have increased, the city has been able to reduce costs in other
areas to maintain a balanced budget without impacting services provided to the community.
DEPARTMENT CONTACT: Judi Vincent 760-602-2430 iudi.vincentacarlsbadca.aov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
• CONTINUED TO DATE SPECIFIC
• CONTINUED TO DATE UNKNOWN
• RETURNED TO STAFF
• OTHER - SEE MINUTES
• Council accepted report and
•
•
•
for June 26, 2012.
set public hear!
Page 2
The Carlsbad economy is starting to improve, including new corporate headquarters and major
hotel, retail and commercial projects which will strengthen the local economy. In addition,
revenues are improving in the city, with continued gains seen in city sales and hotel tax
revenues. However, Carlsbad still faces economic challenges from a fluctuating economy, an
unsteady real estate market, continued fixed costs increases, and concerns over the impact
that budget decisions at the state and federal levels could have on the city's financial situation.
Responsible management of the city's resources includes maintaining a focus on a sustainable
future by ensuring the city remains in good financial health, as today's decisions will impact
future spending levels. Although the city is entering the new fiscal year in a solid financial
position, future economic challenges remain. 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. The Preliminary Operating
Budget assumes that overall General Fund revenue will increase by approximately 1.3 percent
in FY 2012-13 compared to the previous year's projected revenue.
The Preliminary Operating Budget for FY 2012-13 totals $199.4 million citywide, which
represents an increase of $5.6 million, or 2.9 percent, as compared to the FY 2011-12 Adopted
Budget. Operating revenues are estimated at $205.8 million, which is about a $5.8 million, or
2.9 percent, increase over the current year's projections. The recommended General Fund
Operating Budget is $115.1 million, with estimated revenues of $116.1 million. This is a 1.3
percent increase in the estimated General Fund revenues as compared to the projected FY
2011-12 revenues, and a 3 percent increase in General Fund budgeted expenditures compared
to the FY 2011-12 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
$47.8 million. This is a decrease of 0.6 percent from the revised FY 2011-12 projections. This
is based on a 1.2 percent estimated decrease in assessed valuation, as provided by the County
Assessor in May 2012, partially offset by new construction that has occurred over the past year.
Sales taxes are expected to total $28.8 million for FY 2012-13, an increase of 4.4 percent
compared to the FY 2011-12 revised projections. These estimates assume that the
improvements we have seen in the city's sales tax revenues in FY 2011-12 will continue over
the next year, although at a slightly slower rate. The city's sales tax base is heavily weighted in
the transportation and retail sectors. Approximately 25 percent of Carlsbad's sales tax revenue
is historically generated from automobile sales, of which Carlsbad recognized substantial
growth of around 18 percent in CY 2011. Much of this groyyth was attributed to latent demand,
which is unlikely to continue at this rate of growth. General retail sales tax, which comprises
approximately 40 percent of annual sales tax revenue, grew by 8.1 percent in CY 2011,
outpacing the statewide growth rate of 4.5 percent. Like auto sales, retail sales tax receipts are
expected to grow at a slower rate in FY 2012-13. The budget for FY 2012-13 includes
additional sales tax revenues generated from new retail activity, such as the opening of the
Ponto Hilton.
The FY 2012-13 revenues for Transient Occupancy Taxes (TOT) are estimated at $13.5 million
for FY 2012-13, an increase of 8 percent compared to FY 2011-12 estimates. Growth in the
TOT base (existing hotels) is expected to increase by 3.5 percent in FY 2012-13, driven
primarily by forecast increases in the average daily rate paid for rooms. The Ponto Hilton, a
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new hotel, is also expected to open in the summer of 2012 and add additional TOT revenues for
FY 2012-13.
Franchise taxes are estimated at $4.9 million for FY 2012-13, an increase of 2.1 percent over
the FY 2011-12 projections, primarily due to increased receipts from cable and trash services,
partially offset by a decrease in gas and electrical services, which are paid by San Diego Gas
and Electric (SDG&E).
Development Revenues are expected to decrease by 13 percent in FY 2012-13, as a result of
subdued residential activity as compared to the strong residential development in FY 2011-12.
Development Revenues are estimated to be $2 million in FY 2012-13, as compared to $2.3
million projected for FY 2011-12.
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 $115.1 million, which represents a $3.3 million, or 3 percent, increase as compared to
the FY 2011-12 Adopted Budget. The overall increase is mainly attributed to an addition of
$1.8 million as a transfer to the city's Self-Insured Benefits Fund to address anticipated future
pension rate increases and the unfunded pension liability; and to a $1.0 million increase to the
Council Contingency budget to provide an allowance for unanticipated emergencies and
unforeseen program needs in the coming year. Personnel cost increases, due to anticipated
increases in health insurance rates, higher retirement rates as projected by CalPERS, and
previously negotiated wage increases, were largely offset by reductions in retirement costs
resulting from labor negotiations in prior years, and by reductions in the city's number of full-
time and hourly positions. A few expenditures are discussed in more detail below:
Proposed Position Changies - A net decrease of 9.75 full-time positions is reflected in the FY
2012-13 Preliminary Operating Budget, as compared to the FY 2011-12 Adopted Budget. The
total decrease includes the elimination of 10.75 positions identified through the city's
expenditure reduction efforts as well as the addition of 1 full-time limited-term position for
management of the new Carlsbad Safety Training Center. These eliminations are in addition to
the 33.5 positions eliminated over the past three fiscal years.
The FY 2012-13 Operating Budget includes the elimination of the following 10.75 full-time
positions:
1.0 Assistant Planner 1.0 Parks Maintenance Worker 11
1.0 Building Inspector II 1.0 Planning Technician
1.0 Code Compliance Specialist II 0.25 Records Manager
1.0 Maintenance Aide 1.0 Senior Building Inspector
1.0 Meter Reader 1.5 Tree Trimmer II
1.0 Office Specialist II
The net decrease in hourly full-time equivalent (PTE) staff totaled 7.16 positions. This included
the elimination of 7.91 hourly PTE positions citywide, as well as the addition of 0.75 hourly PTE
positions for the management of the new Safety Training Center.
These changes reduce the city workforce from 684.25 to 674.50 full-time employees. Hourly,
full-time equivalent positions decrease from 139.74 to 132.58.
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New Facilities -The city has a number of major capital projects scheduled for construction
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 Carlsbad Safety Training Center was recently opened and additional
funds and staffing for operating and maintaining the facility have been incorporated in the FY
2012-13 Preliminary Operating Budget in the Property and Environmental Management
Department. Also, funding has been added to the Parks and Recreation Department budget to
fund a full year of landscape maintenance for the Madison Street expansion of Pine Avenue
Park, completed in of FY 2011-12, and to the Transportation Department budget for technical
support in FY 2012-13 for the completed portions of the city's traffic signal program.
Capital Outlay - The one major capital outlay purchase planned in the General Fund for FY
2012-13 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 2012-13 Preliminary Operating Budget also includes the
following transfers to other funds;
. $7.5 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 2011-12.
. $210,000 transfer to the Storm Water Program for reimbursement for the General
Fund portion of Storm Water expenses.
• $528,000 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.
• $945,000 to the city's municipal golf course for debt service. The budget for The
Crossings Golf Course is adopted on a calendar year basis. In December 2011, the
Carlsbad Public Financing Authority approved The Crossings Golf Course Budget for
calendar year 2012, including this transfer for debt service funding from the General
Fund. At that time, there was no anticipated need for a golf course operations transfer
from the General Fund for Calendar Year 2012.
• $1.8 million to the City's Self-Insured Benefits Fund as a set aside to assist with
addressing anticipated future pension rate increases from CalPERS.
Finally, the Contingency is budgeted at 1.3 percent of the General Fund Operating Budget, or
$1.5 million, for FY 2012-13, which is a $1 million increase as compared to the FY 2011-12
Adopted Budget. This resource is available to the City Council to address unanticipated
emergencies or unforeseen program needs throughout the year. Prior to the economic
recession, the Council Contingency budget provided between 2 and 2.5 percent of the General
Fund Operating Budget for these unforeseen costs.
Other Funds - Enterprise Fund revenues, including Water, Wastewater Services and Solid
Waste Management, are projected at $58.6 million, an increase of $4.2 million, or 7.7 percent,
over current year projections. The budgeted expenditures are estimated at $57.1 million for FY
2012-13, which is an increase of $3.6 million, or 6.7 percent, over the FY 2011-12 Adopted
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Budget. In December 2011, two-year rate increases for the Water & Sewer Funds were
approved by the Board of Directors of the Carlsbad Municipal Water District and the Carlsbad
City Council to fund maintenance, operations and replacement, as well as to establish and
maintain adequate operating reserves. The maximum rate increase approved for January 1,
2013 for the Water Fund is 10 percent and for the Sewer Fund is 6 percent. 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 11 percent increase to the wholesale purchase cost of
water (from $957 to $1,063 per acre foot, effective January 1, 2013) and a projected 8.5 percent
increase in their fixed charges for water purchases for FY 2012-13. In addition, the cost of
purchasing recycled water is anticipated to increase up to 11.5 percent when compared to the
prior year. Carlsbad customers have decreased water consumption for several years; however,
in FY 2011-12 the quantities purchased began to level off and even increase slightly. The
quantities purchased are expected to stay the same in FY 2012-13 as in FY 2011-12. The
Operating Budget also includes additional funding for depreciation replacement transfers related
to growth and aging of the water infrastructure system.
Revenues from Special Revenue Funds are expected to total $11.3 million, a $700,000 or 5.8
percent, decrease from FY 2011-12 projections. Expenditures are budgeted at $10.9 million.
This is $500,000, or 4.4 percent, lower than the FY 2011-12 Adopted Budget. The types of
items supported within special revenue funds include grants, donations, special fees, and
assessments. Revenues do not always match expenditures in a given year due to timing
differences related to the receipt of grant and donation funding.
The budgets for the Redevelopment Obligation Retirement Funds (RORF) budgets total $1.4
million, and have decreased by $400,000, or 22.2 percent, from the Redevelopment Agency
Fund budgets shown in the previous year. On June 29, 2011, California Governor Jerry Brown
signed ABX1 26 to dissolve all redevelopment agencies within the State of California. All
agencies were subsequently dissolved as of February 1, 2012, and a Successor Agency was
designated to complete the work of the Carlsbad Redevelopment Agency (RDA) and satisfy the
financial obligations. The FY 2012-13 Preliminary Operating Budget reflects the initial
Recognized Obligation Payment Schedule (ROPS) that was prepared by the Successor Agency
in April 2012, but which must ultimately be approved by the Oversight Board, the County of San
Diego and the State of California. The initial ROPS identified financial commitments of the
former RDA, including $250,000 in administrative costs, which will be paid from semi-annual tax
increment revenue received by the Successor Agency.
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
<
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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 three fiscal years. For FY 2012-13 it is recommended that fees be indexed by the one
year change in CPI, which is 2.8 percent. In addition to the general increase mentioned, the
following fees are proposed to change for FY 2012-13:
Fees reduced to match the cost of service that was recently updated:
Finance - Master List of Active Business Licenses from $51 to $42
Police - Administrative Fee DDI from $20 to $18
Fire - Permit-Motor Vehicle Repair from $176 to $168
Utilities - Water Meter Construction Meter Relocation from $34 to $27
Utilities - Water Service Fee - After Hour Turn On from $185 to $174
Utilities - Water Service Fee - Door Hanger (Paper or Electronic) from $12 to $10
Fees to be increased:
• Library Fees - New technology at the library now allows them to check out mobile
devices for use in the library. A new fee is proposed for the late return of these
devices. This new late fee would be $5 for each hour the device is returned late and
would apply after a 20 minute grace period.
Fees to be deleted:
• Parks and Recreation - Tournament Field Rental Day Use Hourly Rate will be deleted
to create more consistency for the applicant.
• For consistency purposes, all Parks & Recreation aquatics program and service fees
that are currently on the Master Fee Schedule will be removed, as they are already in
the Community Services Guide.
Title Changes:
• Library - Library Borrowing-Audio Visual Insurance Fee-Per Video Game/DVD will be
changed to Library Borrowing-Audio Visual Insurance Fee-Per DVD.
• Library - Lost Damaged Video Game/DVD will be changed to Lost Damaged DVD
• Parks & Recreation - Non Refundable Security Deposit for Leo Carrillo Ranch
(Categories B-F) to read Partially Refundable Security Deposit for Leo Carrillo Ranch
(Categories B-F) and the terms to read $1,000 or payment in full. If the reservation is
cancelled at least 90 days before the rental, then $500 of the deposit is refundable.
Otherwise the entire $1,000 deposit is non-refundable.
• Parks & Recreation - Senior Center Kitchen Warming - Hourly Rate - Category A-F to
read Senior Center Kitchen Warming & Small Lunch Room - Hourly Rate - Category
A-F.
• Parks & Recreation - Senior Center Art Room - Hourly Rate - Category A-F to read
Senior Center Art Studio, Multipurpose Room & Game Room - Hourly Rate -
Category A-F.
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• Utilities - Trash Collection - Residential- Per Month to read Trash Collection -
Residential - Per Month - 96 or 64 Gallon Cart.
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.
For FY 2012-13 it is recommended that fees be increased by the one year change in the
associated index. Other fee changes not being changed by the index include:
• Community & Economic Development - Fish & Game Fee, which is set by state statute
• Community & Economic Development - Building Permit Fees, which are based on a
percentage of the Uniform Building Code.
• Community & Economic Development - Plumbing, Electrical and Mechanical Permit
(not combined with Building Permits)
Development Related Service Fees to be deleted because they are no longer eligible
for cost recovery:
• Information Technology - GIS 2005 Topographic Contour Lines
• Information Technology - GIS 2005 Natural Color Aerial Photography *.tif Format
Development Related Service Fees that are decreasing:
• Community & Economic Development - Street Light Energizing Fee will be decreasing
due to a reduction in the induction rate charged by San Diego Gas & Electric
• Housing & Neighborhood Services - Affordable Housing Credit Per Unit - Villa Loma
(Southeast and Southwest Quadrants) will be reduced from $49,000 to $48,000, which
is based on an annual calculation.
Development Related Service Fees that are increasing:
• Housing and Neighborhood Services Fees - A new fee has been added to the Master
Fee Schedule for Affordable Housing Credit Per Unit - Cassia Heights (Southeast and
Southwest Quadrants). This fee is $57,465 per unit.
Development Related Service Fees reduced to match the cost of service that was
recently updated:
• Parks and Recreation -Trails Inspection fee is proposed to be reduced from $667 to
$298.
• Community & Economic Development - Environmental Monitoring Fee from $218 to
$206
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• Community & Economic Development - Village Area Noticing Fee (Minor) will not be
fully indexed. It will be indexed up to the cost of providing the service which is $223.
• Community & Economic Development - Village Area Permit Noticing Fee (Major) will
not be fully indexed. It will be indexed up to the cost of providing the service which is
$413.
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 three fiscal years and amended the
ordinances in those years holding fees in abeyance. Prior to the fees being held in
abeyance, developers were paying the indexed fees. New developers are currently paying a
lower fee and it is estimated that development projects will not have enough funds for
development in those areas to be completed. Due to the inequity issue this creates, for FY
2012-13 these fees are recommended to be increased by the four year cumulative increase
of the respective index since the last time fees were increased.
EXHIBITS:
1. Fiscal Year 2012-13 Preliminary Operating Budget (Overview)
2. Operating Funds, Projected Fund Balances for FY 2011-12 and FY 2012-13
3. Operating Funds, Revenue Estimates for FY 2011-12 and FY 2012-13
4. Operating Funds, Budget Expenditure Schedule FY 2009-10 through FY 2012-13
5. Personnel Allocation Schedule FY 2010-11 through FY 2012-13
6. Proposed Fee Changes - June 2012
The Preliminary Operating Budget and Capital Improvement Program for Fiscal Year 2012-13
are on file with the City Clerk.
Exhibit 1
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
The Preliminary Operating Budget for Fiscal Year 2012-13 totals $199.4 million, with revenues
for the year estimated at $205.8 million. General Fund revenues are estimated at $116.1 million
and General Fund budgeted operating expenditures are $115.1 million.
REVENUE
The following table shows the total operating revenues anticipated to be received by the city for
Y 2011-12, as well as those estimated for FY 2012-13.
REVENUE SUMMARY
BY FUND TYPE
(in Millions)
FUND PROJECTED
2011-12
ESTIMATED
2012-13
$
CHANGE
%
CHANGE
GENERAL FUND
SPECIAL REVENUE
ENTERPRISE
INTERNAL SERVICE
REDEV. OBLIG. RETIREMENT
$ 114.6
12.0
54.4
15.9
3.1
$ 116.1
11.3
58.6
17.7
2.1
$ 1.5
(0.7)
4.2
1.8
(1.0)
1.3%
-5.8%
7.7%
11.3%
-32.3%
TOTAL $ 200.0 $ 205.8 $ 5.8 2.9%
Revenue estimates for the Operating Budget indicate that the city will receive a total of $205.8
million in FY 2012-13, a $5.8 million, or 2.9 percent, increase over the prior year's projections.
The significant changes from the prior year include a $4.2 million, or 7.7 percent, increase in the
Enterprise Funds due to proposed water and wastewater rate increases. The General Fund
shows an increase of $1.5 million, or 1.3 percent, and Special Revenue Funds show a decrease
of $700,000, or 5.8 percent, 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
SIGNIFICANT GENERAL FUND REVENUES
(In Millions)
PROJECTED ESTIMATED $ %
FUND 2011-12 2012-13 CHANGE CHANGE
PROPERTY TAX $ 48.1 $ 47.8 $ (0.3) -0.6%
SALES TAX 27.6 28.8 1.2 4.4%
TRANSIENT OCCUPANCY TAX 12.5 13.5 1.0 8.0%
FRANCHISE TAXES 4.8 4.9 0.1 2.1%
BUSINESS LICENSE TAX 3.7 3.6 (0.1) -2.7%
DEVELOPMENT REVENUES 2.3 2.0 (0.3) -13.0%
ALL OTHER REVENUE 15.6 15.5 (0.1) -0.6%
TOTAL $ 114.6 $ 116.1 $ 1.5 1.2%
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
General Fund revenue sources indicate that Carlsbad is benefitting from an improving state and
local economic climate. Two of our largest revenue sources, sales tax and transient occupancy
tax (TOT) have exhibited healthy growth in FY 2011-12 and are expected to continue that trend
in the coming fiscal year. Revenues from sales tax and TOT increase are highly sensitive to
changes in the economic activity, unlike property tax revenues, which tend to lag behind
economic growth and remain relatively stable over time. Home prices in Carlsbad have
continued to fall over the past year and, in FY 2012-13, property taxes are expected to
decrease slightly, providing approximately $47.8 million to the General Fund, compared to $48.1
million in FY 2011-12. This is based on a 1.2 percent estimated decrease in assessed
valuation, as provided by the County Assessor in May 2012, partially offset by new construction
that has occurred over the past year. The median single family home sales price in Carlsbad is
fell to $580,000 in March 2012, down over 7 percent from last year.
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 2012-13 are based on assessed values as of January 1, 2012.
Property and Sales Tax Revenues
60.00
50.00
-Sales Tax
-Property
Tax
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
Business to
Business
13%
Sales Tax by Category
Fourth Quarter 2011 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 $28.8 million for FY 2012-13, an
increase of 4.4 percent compared to
the FY 2011-12 projections.
Approximately 25 percent of
Carlsbad's sales tax revenue is
histohcally generated from automobile
sales, which slumped significantly
during the recent economic downturn.
New auto sales are expected to stabilize at around $5.7 million in FY 2012-13, as Carlsbad
recognized substantial growth in auto sales of around 18 percent in CY 2011. Califomia auto
dealers in general, sold 1.3 million cars, an annual improvement of almost 10 percent and
trucks in 2011, with the Honda Civic being the top seller. Much of this growth was attnbuted to
latent demand', which is unlikely to continue this rate of growth. General retail sales tax, which
comprises approximately 40 percent of annual sales tax revenue, grew by 8.1 percent in CY
0
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
2011 outpacing the statewide growth rate of 4.5 percent. Like auto sales, retail sales tax
receipts are expected to grow at a slower rate in FY 2012-13. The budget for FY 2012-13
includes additional sales tax revenues generated from new retail activity, such as the opening of
the Ponto Hilton.
Several years ago, the State of California implemented the "Triple Flip." The "Triple Flip" is
essentially a temporary swap of a VA 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 70 percent of the city's sales tax base and were negatively impacted by the
recent economic recession. During FY 2011-12, sales tax revenues, especially in the auto and
retail sectors, increased as a slow economic recovery took root in San Diego.
Sales tax estimates also include approximately $800,000 in Proposition 172 funds, which are
earmarked for public safety service expenditures. Proposition 172 requires that the 'A cent
increase in Califomia sales taxes be allocated to local agencies to fund public safety services.
Transient Occupancy Taxes
$ Millions
The third highest General
Fund revenue source is
Transient Occupancy
Taxes (TOT, or hotel taxes),
estimated at $13.5 million
for FY 2012-13, an increase
of 8 percent compared to FY
2011-12 estimates. Growth
in the TOT base (existing
hotels) is expected to
increase by 3.5 percent in
FY 2012-13, driven primarily
by forecast increases in the
average daily rate paid for
rooms. The Ponto Hilton, a
new hotel, is also expected
to open in the summer of 2012 and add additional TOT revenues. TOT revenues peaked in FY
2007-08 at $14.3 million and, during the economic downturn, fell to a low of $11.5 million in FY
2009-10. As the graph indicates, this sector appears to be on the mend.
2005 2007 2009 2011
Fiscal Year
2013e
$ Millions
Franchise Taxes
I Other Franchise
I SDG&E Franchise
2005 2007 2009 2011 2013e
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
agreements for cable TV
service, solid waste
services, cell sites, fiber
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
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 franchises, AT&T and Time Warner. Overall,
franchise tax revenues are projected to increase by approximately 2.1 percent, primarily due to
increased receipts from cable and trash services, partially offset by a decrease in gas and
electrical 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 othen^^ise 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 paid by SDG&E.
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. During FY 2010-11, development related revenues continued to
strengthen, especially on the non-residential side with the permitting of the new Isis
Pharmaceuticals headquarters and the Hilton Beachfront Hotel. Although not as high as FY
2010-11, development related revenues are projected to end the year very strong in FY 2011-
12, with the development of several master planned residential communities and the
development of the new Legoland Hotel. In FY 2010-11, there were 260 units permitted for
residential housing. For FY 2011-12, 336 residential units have been permitted through April
2012. For FY 2012-13,183 permits are projected to be issued for residential housing. Although
commercial and industrial building activity weakened in FY 2011-12 as compared to FY 2010-
11, it is expected that activity will pick up again in FY 2012-13 with the projected development of
the new Lowes and La Costa Town Square shopping centers. Due to projected subdued
residential activity as compared to the strong residential development in FY 2011-12, building-
related revenues are expected to drop by 13 percent in FY 2012-13.
Although Business license taxes are closely tied to the health of the local economy, due to
some one-time revenues received during FY 2011-12, they are projected to decrease by 2.7
percent to an estimated $3.6 million. There are currently about 8,900 licensed businesses in
Carlsbad, with just over 2,500 of them home-based.
All other revenues include transfer taxes, interest earnings, ambulance fees, recreation fees,
and other charges and fees. The estimate for Fiscal Year 2012-13 totals $15.5 million, a
$100,000, or 0.6 percent, decrease from the previous year.
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.
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
1^
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
city. Carlsbad expects to receive approximately $1.1 million in transfer taxes for FY 2012-13,
which is a $136,000 increase over FY 2011-12. 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 $1.4 million in interest on its General Fund investments for
Fiscal Year 2012-13 (a projected 1.7 percent yield on the city's investment portfolio) as well an
additional $200,000 in interest earnings from a loan repayment from the former Redevelopment
Agency.
General Fund Revenues
$ Millions
140 + 1.2%
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY
2012e
FY
20138
Overall, as reflected
in the bar chart,
General Fund
revenues are
expected to be up
1.2 percent from FY
2011-12 estimates
due to the increase
in sales and
transient occupancy
taxes. 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.
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 2010-11, the unassigned General Fund balance was
approximately $57.5 million. At the end of FY 2011-12 the reserve is projected to be
approximately $59.1 million, or 51 percent, of the FY 2012-13 Budget. The reserve amount is
consistent with Council Policy 74: General Fund Reserve Guidelines.
Other Funds
Revenues from Special Revenue funds are expected to total $11.3 million in FY 2012-13, a
$700,000, or 5.8 percent, decrease from FY 2011-12. 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)
13
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
SPECIAL REVENUE FUNDS
2012-13 PROJECTED REVENUES
Donations and
Grants
9%
All Others
4%
Maintenance
Districts
25% Rental Assistance
51%
Affordable Housing
11%
The most noteworthy changes in the Special Revenue funds occurred in the Affordable Housing
Trust Fund, the Street Lighting Fund and the Rental Assistance Fund. Estimated revenues
decreased approximately $1 million, $241,000 and $130,000, respectively, from FY 2011-
12. During FY 2011-12, the city received approximately $1.4 million in one-time affordable
housing credits. In order to meet the inclusionary housing obligations for certain areas of the
city (e.g., the southeast and southwest quadrants), units related to developments such as Villa
Loma and Cassia Heights were made available as affordable housing credits for housing
developers to purchase. Due to the small size of certain projects and the difficulty in obtaining
financing, some developers/applicants have opted to purchase affordable housing credits
instead of constructing units.
During FY 2011-12, the city received approximately $205,000 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 2012-13.
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.
The Federal government is reducing the amount of reimbursements for administrative expenses
for their Section 8 Rental Assistance Program, which is reflected in the reduced estimated
revenues for the Rental Assistance Program in FY 2012-13.
Enterprise fund revenues for FY 2012-13 are projected at $58.6 million, an increase of $4.2
million, or 7.7 percent, over current year projections. The increase in revenues is primarily due
to the planned 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 $43.2 million, an increase of $3.4 million, or
8.5 percent over the current year estimate. These revenues reflect $3.4 million in increased
sales revenue due to proposed rate increases. In December 2011, two year rate increases
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
were approved by the Board of Directors of the Carlsbad Municipal Water District. The
maximum rate increase approved for January 1, 2013 is 10 percent. Anticipated increases paid
to the San Diego County Water Authority include an 11 percent increase to the wholesale
purchase cost of water (from $957 to $1,063 per acre foot, effective January 1, 2013), and an
8.5 percent increase in the fixed charges for water purchases (from $5.1 million to $5.6 million)
for FY 2012-13. In addition to paying for the wholesale and fixed water costs, the FY 2012-13
Operating Budget includes funding for replacement of Carlsbad's water infrastructure, ongoing
meter replacements, and building a sufficient operating reserve.
Estimated revenues for Wastewater are $11.9 million, $610,000 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. In December 2011, two year rate increases were approved by the
Carlsbad City Council. The maximum rate increase approved for January 1, 2013 is 6 percent.
Internal Service funds show estimated revenues of $17.7 million for FY 2012-13, an increase
of about $1.8 million, or 11.3 percent, from FY 2011-12 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 most significant change occurred in the Self-Insured Benefits Fund. Included in the FY
2012-13 revenues is a $1.8 million transfer from the General Fund to be set aside to assist in
the stabilization of future CalPERS retirement costs.
The Redevelopment Obligation Retirement Fund (RORF) revenues are expected to total
$2.1 million in the upcoming year, a decrease of 32.3 percent, or $1 million, from the projections
from the previous year.
On June 29, 2011, California Governor Jerry Brown signed ABX1 26 to dissolve all
redevelopment agencies within the State of California. All agencies were subsequently
dissolved as of February 1, 2012, and a Successor Agency was designated to complete the
work of the Carlsbad Redevelopment Agency (RDA) and satisfy the financial obligations. A
Recognized Obligation Payment Schedule (ROPS) was prepared by the Successor Agency in
April 2012 which must ultimately be approved by the Oversight Board, the County of San Diego
and the State of California. The initial ROPS identified financial commitments of the former
RDA which will be paid from semi-annual tax increment revenue received by the Successor
Agency. Every six months a new ROPS must be prepared and approved by the Oversight
Board, the County of San Diego and the State of California in order to receive additional tax
increment. Due to the dissolving of the RDA, the RORF will only receive tax increment
revenues and interest earnings on any cash balances. Tax increment revenues are projected to
decrease due to the increase in County of San Diego administrative costs which are netted
against the tax increment revenues received by the Successor Agency.
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
EXPENDITURES
The city's Preliminary Operating Budget for FY 2012-13 totals $199.4 million,
which represents an increase of about $5.6 million, or 2.9 percent, as
compared to the adopted FY 2011-12 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 for the city to continue to provide the
very best services to the community while finding operating efficiencies and reducing costs
wherever possible. The goal was to achieve a balanced budget for the coming fiscal year while
still maintaining the city's long-term financial health, ensuring that future costs can be met
without negatively impacting the services provided to the community. All known and ongoing
operating expenses were incorporated in the FY 2012-13 Preliminary Operating Budget, as well
as in the long-term financial forecast. The FY 2012-13 Preliminary Operating Budget also sets
aside $1.8 million in order to address the current unfunded pension liability as well as to help
stabilize future pension costs.
Responsible management of the city's resources includes maintaining a focus on a sustainable
future by ensuring the city remains in good financial health, as today's decisions will impact
future spending levels. Although the city is entering the new fiscal year in a solid financial
position, future economic challenges remain. The following policies for FY 2012-13 were
established in line with conservative estimates for future revenue growth:
• Continue to minimize service level impacts to our residents.
• No increase in the number of positions and no growth in maintenance and operations,
unless required for new facilities.
• 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. 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. The city
realigned its organizational structure in FY 2010-11, allowing for increased efficiencies with
fewer resources, with overall operations costs remaining at FY 2009-10 levels. For both FY
2011-12 and FY 2012-13, in order to meet rising General Fund expenses, some positions were
eliminated, related service delivery was restructured, and departments were 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 fonA/ard to the next year, or will increase the city's reserves. At the end of FY 2011-
12, the amounts carried fon^/ard by each department will be capped at no more than 10 percent
of the previous year's Adopted Budget.
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
Budgeted Expenditures
Through the application of these guidelines and policies, the FY 2012-13 Preliminary Operating
Budget of $199.4 million was developed.
Position Changes
A net decrease of 9.75 full-time positions is reflected in the FY 2012-13 Preliminary Operating
Budget, as compared to the FY 2011-12 Adopted Budget. Total position decreases include the
elimination of 5.75 positions identified through expenditure reduction efforts, the elimination of
two positions as a result of losing redevelopment funding from the State of California, and the
elimination of three positions that had previously been unfunded, for a total of 10.75 position
eliminations, resulting in approximately $600,000 in total personnel savings citywide for the
coming year. These eliminations are partially offset by the addition of one full-time, limited term
position for facility management at the new Carlsbad Safety Training Center.
The FY 2012-13 Preliminary Operating Budget includes the elimination of the following 10.75
full-time positions:
1.0 Assistant Planner 1.0 Parks Maintenance Worker II
1.0 Building Inspector II 1.0 Planning Technician
1.0 Code Compliance Specialist II 0.25 Records Manager
1.0 Maintenance Aide 1.0 Senior Building Inspector
1.0 Meter Reader 1.5 Tree Trimmer II
1.0 Office Specialist II
The FY 2012-13 Preliminary Operating Budget includes the addition of the following full-time,
limited term position:
1.0 Safety Training Center Facility Manager
The net decrease in hourly staff totals 7.16 PTE. This includes decreases of 5.16 hourly PTE in
Parks and Recreation, 1.0 hourly PTE in Community and Economic Development, 1.0 hourly
PTE in Library and Arts, and 0.75 hourly PTE in Human Resources. These decreases are offset
by an increase of 0.75 hourly PTE in Property and Environmental Management for new facility
building maintenance and custodial services for the City of Carlsbad's Safety Training Center.
These changes result in a city workforce of 674.50 full and three-quarter time employees, and
132.58 hourly, full-time equivalent positions.
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
grand opening of the City of Carlsbad's Safety Training Center occurred in May 2012.
Additional funds for operating the facility have been incorporated in the FY 2012-13 Preliminary
Operating Budget in the Property and Environmental Management Department. Additional
staffing has also been added to operate and maintain the facility, as mentioned in the position
changes noted above. Also, about $5,000 has been added to the Parks and Recreation
Department budget to fund a full year of landscape maintenance of the Madison Street
expansion of Pine Avenue Park, completed mid-year of FY 2011-12, and about $6,000 has
been added to the Transportation Department budget for technical support in FY 2012-13 for
the completed portions of the city's traffic signal program.
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
Budget bv Fund Type
The table below shows the changes in the Preliminary Operating Budget for FY 2012-13, as
compared to the Adopted Budget for FY 2011-12.
BUDGET EXPENDITURE SUMMARY
BY FUND TYPE
(In Millions)
FUND
BUDGET
2011-12
BUDGET
2012-13
$
CHANGE
%
CHANGE
GENERAL FUND
SPECIAL REVENUE
ENTERPRISE
INTERNAL SERVICE
REDEV. OBLIG. RETIREMENT
$ 111.8
11.4
53.5
15.3
1.8
$ 115.1
10.9
57.1
14.9
1.4
$ 3.3
(0.5)
3.6
(0.4)
(0.4)
3.0%
-4.4%
6.7%
-2.6%
-22.2%
TOTAL $ 193.8 $ 199.4 $ 5.6 2.9%
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)
BUDGET
2011-12
BUDGET
2012-13
$
CHANGE
%
CHANGE
PERSONNEL
MAINTENANCE & OPERATIONS
CAPITAL OUTLAY
TRANSFERS
$ 72.8
29.4
0.1
9.5
$ 73.3
30.7
0.1
11.0
$ 0.5
1.3
1.5
0.7%
4.4%
0.0%
15.8%
TOTAL $ 111.8 $ 115.1 $ 3.3 3.0%
General Fund
The total Preliminary Operating Budget for the General Fund for FY 2012-13 is $115.1 million,
which is three percent greater than the previous year's Adopted Budget of $111.8 million. The
total increase is mainly attributable to a $1.3 million, or 4.4 percent, net increase in Maintenance
and Operations costs and a $1.5 million, or 15.8 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 64 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 2012-13 is $73.3 million, which is $500,000, or 0.7 percent, more than the
previous year's total personnel budget of $72.8 million. The overall increase was due to several
factors, as discussed on the following page.
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
GENERAL FUND
PERSONNEL COSTS
(In Millions)
BUDGET
2011-12
BUDGET
2012-13
$
CHANGE
%
CHANGE
SALARIES
RETIREMENT
HEALTH INSURANCE
WORKERS COMP
OTHER PERSONNEL
$ 50.3
13.6
6.5
1.3
1.1
$ 51.0
13.1
6.7
1.4
1.1
$ 0.7
(0.5)
0.2
0.1
0.0
1.4%
-3.7%
3.1%
7.7%
0.0%
TOTAL $ 72.8 $ 73.3 $ 0.5 0.7%
The table above shows the breakdown of personnel costs for the General Fund. Overall, total
personnel costs are projected at $73.3 million, an increase of about $500,000, or 0.7 percent,
for FY 2012-13 as compared to FY 2011 -12.
Salaries include full and part-time staff costs and are expected to increase in FY 2012-13 by
$700,000, or 1.4 percent. The increase is mainly due to previously negotiated wage increases
scheduled to occur in FY 2012-13, as well as the addition of staff to operate and maintain the
new Carlsbad Safety Training Center. Total wage and staffing increases were somewhat offset
by the elimination of 10.75 full-time positions citywide as part of the city's efforts to reduce costs
in FY 2012-13.
Retirement rates, as projected by CalPERS, will increase in FY 2012-13 by about 0.73 percent
of salary for General and Management employees, representing a 3.25 percent increase, and
by about 1.13 percent of salary for Safety employees, representing a 3.5 percent increase.
These rate increases for the city were offset by retirement cost decreases due to prior year
General, Management and Safety employee labor negotiations, and due to decreases from
position eliminations, resulting in an overall decrease of $500,000, or 3.7 percent, in total
retirement costs. In addition to the retirement costs noted here, an additional $1.8 million has
been budgeted as a transfer to the City's Self-Insured Benefits Fund as a set aside to help
address anticipated future pension rate increases from CalPERS.
Health insurance rates are projected to increase by about 5 percent in January 2013, while
Worker's Compensation rates are projected to increase by about 3 percent for the fiscal year.
These increased costs are partially offset by decreases due to a reduction in the overall number
of city personnel, resulting in only slight increases in both areas for the coming year.
Miscellaneous other personnel costs are projected to remain flat for FY 2012-13, with small
increases offset by the overall personnel decreases previously mentioned.
Maintenance & Operations costs (or M&O) represent about 27 percent of the total General
Fund budget, and include the budgets for all program expenses other than personnel, capital
outlay and transfers. Overall, total M&O costs are projected at $30.7 million, an increase of
about $1.3 million, or 4.4 percent, for FY 2012-13 as compared to FY 2011-12. Maintenance
and Operations costs are discussed more fully by program later in the report.
2012-13 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 2012-13, namely $110,000 for the replacement
of three portable EKG monitors for the Fire Department's emergency medical services team.
This is in addition to the three EKG monitors that were budgeted in the FY 2011-12 Operating
Budget.
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:
• $7.5 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 2011-12.
• $210,000 to the Storm Water Program for reimbursement for the General Fund portion
of Storm Water expenses.
• $527,746 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 annual operating expenditures.
• $945,000 to the city's municipal golf course for debt service. The budget and financial
reports for The Crossings Golf Course are on a calendar year basis. In December 2011,
the Carlsbad Public Financing Authority approved The Crossings Golf Course Budget for
calendar year 2012, including this transfer for debt service funding from the General
Fund. At that time, there was no anticipated need for a golf course operations transfer
from the General Fund for Calendar Year 2012.
• $1.8 million to the City's Self-Insured Benefits Fund as a set aside to address anticipated
future pension rate increases from CalPERS.
Advances are amounts anticipated to be transferred from the General Fund to another city
funds and are expected to be repaid to the General Fund in future years. No General Fund
advances are included in this year's Preliminary Operating Budget.
Another way of looking at the General Fund budget is by program. The chart on the following
page compares the total FY 2012-13 Budget to the amounts adopted in the previous year. A
brief description of each department and its services and a summary of significant department
budget changes in the FY 2012-13 Preliminary Operating Budget, are noted below the chart.
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
GENERAL FUND EXPENDITURES
BY DEPARTMENT
(In Millions)
FUND
BUDGET
2011-12
BUDGET
2012-13
$
CHANGE
%
CHANGE
POLICY/LEADERSHIP $ 4.9 $ 5.0 $ 0.1 2.0%
COMMUNITY & ECONOMIC DEV 7.2 7.1 (0.1) -1.4%
FINANCE 3.4 3.5 0.1 2.9%
FIRE 16.9 17.5 0.6 3.6%
HOUSING & NGHBRHD SRVCS 0.6 0.6 0.0 0.0%
HUMAN RESOURCES 2.3 2.3 0.0 0.0%
LIBRARY & ARTS 10.4 10.3 (0.1) -1.0%
PARKS & RECREATION 13.1 12.7 (0.4) -3.1%
POLICE 28.1 27.9 (0.2) -0.7%
PROPERTY & ENVIRO MOT 4.7 5.1 0.4 8.5%
STORM DRAIN ENGINEERING 0.3 0.3 0.0 0.0%
TRANSPORTATION 8.9 8.9 0.0 0.0%
NON-DEPARTMENTAL 11.0 13.9 2.9 26.4%
TOTAL $ 111.8 $ 115.1 $ 3.3 3.0%
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 $100,000, or 2 percent, net increase for FY 2012-13 is primarily due to an
increase in the City Clerk's Office for increased election expenses anticipated in the
coming year.
The Community and Economic Development Department includes economic
development, planning, development services, building inspection, and land use
engineering. The decrease of about $100,000, or 1.4 percent, is mainly due to personnel
changes. The department eliminated one vacant full-time Building Inspector II position
and a net total of one hourly PTE position. Some of these savings were used to absorb
costs previously charged to the South Coastal Carlsbad Redevelopment Area, as well as
to fund increases in economic development activity. The department also eliminated two
additional positions that had been unfunded in a prior year.
The Finance Department provides the services of accounting, financial reporting,
capital and operating budgeting, payroll, billing and collections, citywide mail processing,
purchasing and receiving, fiscal oversight, and long-term financial planning for the city.
The increase of about $100,000, or 2.9 percent, is mainly due to personnel cost
increases, as well as an increase in ambulance billings.
The Carlsbad Fire Department provides emergency operations, emergency
preparedness, and fire prevention services to safeguard lives, property and the
environment in the City of Carlsbad. The FY 2012-13 increase of $600,000, or 3.6
percent, is primarily due to contractual wage increases approved in FY 2011-12, as well
as increases in public safety pension rates and health insurance rates. Increases were
slightly offset by $50,000 of budget reductions in overtime, training, travel and vehicle
costs for the department due to the opening of Carlsbad's Safety Training Center.
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
. The Housing and Neighborhood Services Department includes the city's
neighborhood services, code enforcement, hiring center and volunteer programs.
Budgeted expenditures for the department are expected to remain flat from FY 2011-12
to FY 2012-13. In the General Fund, the department is eliminating one vacant, full-time
Code Compliance Specialist that had been unfunded in the prior year.
• The Human Resources Department supports the city with staffing and recruitment,
employee development, performance management, and compensation and labor
relations services. An increase in contractual services for staff training and development
is offset by a decrease of a 0.75 hourly FTE position. In total for the department, no
significant change is expected for FY 2012-13, as compared to the FY 2011 -12 budget.
• 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 decrease by $100,000, or 1 percent, from FY 2011-
12 to FY 2012-13, largely due to the downgrading of two full-time positions and the
elimination of a net total of 1.0 hourly FTE position.
. 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.
Overall, the department's budget is decreasing by
$400,000, or 3.1 percent, from the prior year, largely
due to the elimination of 3.5 full-time and 0.16 hourly
FTE positions in parks and tree maintenance, due to the
modification of maintenance operations schedules in the
Parks division. In addition, a net total of 5 hourly FTE positions are being eliminated in
Recreation by altering service delivery methods and by coordinating duties between staff
in the Parks and Recreation divisions. These personnel decreases amounted to almost
$500,000 in savings for the department. Also, a decrease of $200,000 was made to the
budget for instructional classes to better reflect actual expenses incurred over the last
few years. These decreases were somewhat offset by a total $200,000 increase to the
budget for a comprehensive City Trails Master Plan update and for a needs assessment
study to address future park and recreation programming needs. In addition, the
department budget increased by about $100,000 due to the transfer of the Special
Events division from the Police Department, including one full-time position.
• The Carlsbad Police Department provides high quality public safety services to the
community by enforcing laws and ordinances, preserving the peace, and providing for
the protection of life and property. Overall, the department's costs are decreasing by
$200,000, or 0.7 percent, for FY 2012-13 as compared to FY 2011-12. Approximately
$100^000 of the decrease is due to the transfer of the Special Events division, including
one full-time position, to the Parks and Recreation Department. Also, in FY 2012-13, the
budget is being reduced by $250,000 for booking fees not anticipated to be charged by
the County and by another $150,000 in overtime, training, travel and vehicle costs due to
savings anticipated from the opening of the City of Carlsbad's Safety Training Center.
These reductions are offset by previously approved contractual wage increases,
increases in public safety pension rates, health insurance rates. General Liability
insurance and Fleet Replacement costs.
"3
2012-13 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 stormwater, habitat and other
environmental maintenance and monitoring programs. The approximately $400,000, or
8.5 percent, increase from the prior year's budget is primarily due to additional costs
associated with the opening of the City of Carlsbad's Safety Training Center, including
the addition of one full-time and 0.75 hourly FTE positions.
• The Utilities Department in the General Fund consists of Storm Drain Engineering
activities. No significant change is expected for FY 2012-13 as compared to the FY
2011 -12 budget appropriation.
• The Transportation Department manages all streets, traffic and other city-wide
transportation services, including city traffic engineering, traffic signal monitoring and
maintenance, and maintenance of all city streets and roadways. The department budget
is expected to remain relatively flat from FY 2011-12 to FY 2012-13.
• Non-departmental expenses include the transfers previously discussed, the Council
Contingency account, and administrative and other expenses not associated with any
one department. The non-departmental budget is expected to increase by $2.9 million,
or 26.4 percent, in FY 2012-13. The increase is largely attributed to budgeting a $1.8
million transfer to the city's Self Insured Benefits Fund to assist with anticipated future
pension rate increases.
The Council Contingency is a budgeted amount that is available to the City Council to
address unanticipated emergencies or unforeseen program needs during the fiscal year.
Prior to the economic recession, the Council Contingency budget provided between 2
and 2.5 percent of the General Fund Operating Budget for these unforeseen costs. The
Council Contingency was reduced significantly during the last three years to ensure a
balanced budget during the economic recession. For FY 2012-13, the Contingency is
budgeted at 1.3 percent of the General Fund Operating Budget, or $1.5 million, which is
a $1.0 million increase compared to the FY 2011-12 budget.
History of General Fund Budgeted Expenditures
$ Millions
120 +9.5%
I As reflected in the chart to the left,
I the city's expenditures were
i reduced significantly with the City
+2.2% |H j Council's revised budget in FY
m%. jam wm 1 2008-09, reflecting a 3.3 percent
i decrease from the FY 2007-08
I Adopted Budg^et. A further 3.2
I percent reduction was made in FY
1 2009-10 in order to reduce
I expenditures in line with
FY2007-08 FY2008-09r FY2009-10 FY2010-11 FY2011-12 FY2012-13 ! continuod General Fund revenue
$ii6.5m $ii2.7m $io9.im sio9.4m $iii.8m $ii5.im ( doclines. Expenditure projections
! for FY 2010-11 remained
relatively flat, with growth of less than one percent, in anticipation of a flat economy. For FY
2011-12 General Fund expenditures showed a slight increase of 2.2 percent, supported by
projected revenue increases. For FY 2012-13 General Fund expenditures are expected to
increase by $3.3 million, or 3 percent, based on projections of continued economic growth.
1^
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
Changes in Other Funds
Special Revenue funds, at $10.9 million, are down $500,000, or 4.4 percent, from the prior
year. This is mainly due to reduced funding for rental assistance and administration for the
federal Community Development Block Grant program.
Enterprise funds total $57.1 million, which is an increase of $3.6 million, or 6.7 percent, over
the FY 2011-12 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 (11 percent
increase in fixed costs and a 8.5 percent increase in variable costs due to a proposed increase
from $957 to $1,063 per acre foot effective January 1, 2012). In addition, the cost of purchasing
recycled water is anticipated to increase up to 11.5 percent when compared to the Adopted
Budget for FY 2011-12. Carlsbad customers have decreased water consumption for several
years; however, in FY 2011-12 the quantities purchased began to level off and even increase
slightly. The quantities purchased are expected to stay the same in FY 2012-13 as in FY 2011-
12. The Operating Budget also includes additional funding for depreciation replacement
transfers related to growth and aging of the water infrastructure system.
Wastewater operations are projected to increase 2.1 percent, or $231,000, over the Adopted
Budget for FY 2011-12. The operating budget includes additional funding for depreciation
replacement transfers related to growth in the wastewater infrastructure system.
The Internal Service funds total $14.9 million, a decrease of $400,000, or 2.6 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 a decrease of approximately
$350,000, or 17.1 percent, based on lower claims projected for the fund, as compared to
the prior fiscal years.
• The Self Insured Benefits budget shows a decrease of approximately $100,000, or 10
percent, based on a projected decrease in the city's annual required contribution for
post-employment health benefits 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 less than the
previous year, or a 25.8 percent decrease, due to fewer 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 $200,000, or 3.5 percent, from FY 2011-12 to FY 2012-13. This is mostly
due to more technology equipment being due for replacement than in the prior year.
The budgets for the Redevelopment Obligation Retirement Funds (RORF) budgets have
decreased by $400,000 or 22.2 percent, from the Redevelopment Agency Fund budgets shown
in the previous year. On June 29, 2011, California Governor Jerry Brown signed ABX1 26 to
dissolve ail redevelopment agencies within the State of California. All agencies were
subsequently dissolved as of February 1, 2012, and a Successor Agency was designated to
complete the work of the Carlsbad Redevelopment Agency (RDA) and satisfy the financial
obligations. The FY 2012-13 Preliminary Operating Budget reflects the initial Recognized
Obligation Payment Schedule (ROPS) that was prepared by the Successor Agency in April
2012, but which must ultimately be approved by the Oversight Board, the County of San Diego
3.^
2012-13 PRELIMINARY OPERATING BUDGET OVERVIEW
and the State of California. The initial ROPS identified financial commitments of the former
RDA, including $250,000 in administrative costs, which will be paid from semi-annual tax
increment revenue received by the Successor Agency. Every six months a new ROPS must
be prepared and approved by the Oversight Board, the County of San Diego and the State of
California in order to receive additional tax increment. The city eliminated two full-time positions
as a result of the dissolution of the Carlsbad Redevelopment Agency.
SUMMARY
This Preliminary Operating Budget for FY 2012-13 provides a balanced budget for the coming
fiscal year while continuing with a long-term plan to sustain a balanced budget in future years.
Significant ongoing operating expenses were identified and incorporated in the FY 2012-13 to
ensure the budget reflects the ongoing financial obligations of the city. The Carlsbad economy
is starting to improve, including new corporate headquarters and major hotel, retail and
commercial projects which will strengthen the local economy. In addition, revenues are
improving in the city, with continued gains seen in city sales and hotel tax revenues.
However, Carlsbad still faces economic challenges from a fluctuating economy, an unsteady
real estate market, continued fixed costs increases, and concerns over the impact that budget
decisions at the state and federal levels could have on the city's financial situation. To meet
these challenges, the city has initiated a program to evaluate all city operations looking for
opportunities to reduce costs through efficiencies, shared services or contracting out services in
some areas when that makes sense. The city has already seen results from these efforts. As
fixed costs like utilities, insurance, and supplies have increased, departments have been able to
reduce costs in other areas to maintain a balanced budget without impacting services provided
to the community.
The City of Carlsbad is entering the new fiscal year in a solid financial position and focused on
the future. Careful planning and responsible management have allowed the city to not only
maintain core services, but to also move ahead on community projects and other investments
that contribute to an excellent quality of life in our community. Promoting a strong local economy
and bringing more jobs to the city is a top priority. Due to continued fiscally conservative
practices, the city is in an excellent position to take advantage of new economic opportunities
that will allow our community to thrive now and for many years in the future.
CITY OF CARLSBAD
OPERATING FUNDS
PROJECTED f^UNb BALANCES
Exhibit 2
FUND
UNRESERVED
BALANCE
JULY 1,2011
PROJECTED
REVENUES
PROJECTED
EXPENDITURES
ADVANCES
&FUND
TRANSFERS
OTHER
CHANGES
PROJECTED
BALANCE
JUNE 30, 2012
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
RECREATION DONATIONS
RENTAL ASSISTANCE - SECTION 8
SENIOR DONATIONS
STREET LIGHTING
STREET TREE MAINTENANCE
TOTAL SPECIAL REVENUE
ENTERPRISE
WATER OPERATIONS
RECYCLED WATER OPERATIONS
WASTEWATER OPERATIONS
SOLID WASTE MANAGEMENT
TOTAL ENTERPRISE
INTERNAL SERVICE
WORKERS' COMPENSATION
RISK MANAGEMENT
SELF-INSURED BENEFITS
VEHICLE MAINTENANCE
VEHICLE REPLACEMENT
INFORMATION TECHNOLOGY
TOTAL INTERNAL SERVICE
REDEVELOPMENT OBLIGATION RETIREMENT FUNDS
VILUGE RDA OBLIGATION RETIREMENT FUND
VILLAGE LOW AND MODERATE INCOME HOUSING
$57,533,210
(2,420,725)
5,371,069
(806.115)
9,592,343
11,736,572
1,906,287
9,685
1,142,671
555,964
14,377,845
4,212,294
22,204,746
3,002,830
7,156,252
$114,613,000 $111,355,390
(400,000)
33,071,800
6,718,650
11,331,000
3,309,943
54,431,393
1,577,084
1,681,970
870,950
2,911,815
2,079,047
6,712,808
15,833,674
2,686,600
431,680
32,013,625
7,409,233
10,408.759
3,141,223
52,972,840
2,393,578
1,356,594
785,000
2,719,368
1,388,853
7,018,150
15,661,543
340,000
70,191
(1,252,000)
$60,790,820
0
(400.000)
0
0
(1,252,000)
57,533,210 114,613,000 111,355,390 59,138,820
14,798,713 2,264,350 530,047 16,533,016
1,304,696 125,700 293,511 1,136,885
(1,765) 84,000 82,235 0
1,065,885 5.000 35,140 1,035.745
2,029,724 24.000 99,777 1,953,947
160,089 29.400 89,029 100,460
260,535 1.000 6,000 255,535
127,598 129.600 130,110 127,088
1.206.572 432.500 220,147 1,418.925
502,958 329.000 450,106 381.852
200,906 718.500 842,662 76.744
804,514 53.000 247,487 610.027
44,400 185.000 649,348 (419,948)
223,008 31.200 42,333 211,875
1,624,233 5.902,000 636,163 6,890,070
194,769 23,000 15,912 201,857
694,849 1,125,500 1,108,995 711,354
130,146 580,500 634,669 75,977
25,371,830 12.043,250 6,113,671 31,301,409
(1.362.550)
4.680,486
116,126
9,761,063
13,195,125
1,089,793
335,061
1,228,621
748,411
15,068,039
3,906,952
22,376,877
5.349,430
7,517,741
sec RDA OBLIGATION RETIREMENT FUND 3,501,055 18,300 170,196 400.000 3,749,159
sec LOW AND MODERATE INCOME HOUSING 269,303 1.000 47.156 223.147
TOTAL REDEVELOPMENT OBLIGATION RETIREMENT FUNDS 13,929,440 3,137,580 627.543 16,839,477
TOTAL OPERATING FUNDS $130,775,798 $200,058,897 $186,730,987 $0 ($1,252,000) $142,851,708
FOR THE GENERAL FUND ONLY THIS REPRESENTS UNDESIGNATED, UNRESERVED FUND BALANCE.
OPERATING FUNDS
PROJECTED FUND BALANCES
Exhibit 2
FUND
PROJECTED
BALANCE
JULY 1,2012
ESTIMATED
REVENUES
ADOPTED
BUDGET
ADVANCES
&FUND
TRANSFERS
OTHER
CHANGES
PROJECTED
BALANCE
JUNE 30, 2013
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
RECREATION DONATIONS
RENTAL ASSISTANCE - SECTION 8
SENIOR DONATIONS
STREET LIGHTING
STREET TREE MAINTENANCE
TOTAL SPECIAL REVENUE
ENTERPRISE
WATER OPERATIONS
RECYCLED WATER OPERATIONS
WASTEWATER OPERATIONS
SOLID WASTE MANAGEMENT
TOTAL ENTERPRISE
INTERNAL SERVICE
WORKERS' COMPENSATION
RISK MANAGEMENT
SELF-INSURED BENEFITS
VEHICLE MAINTENANCE
VEHICLE REPLACEMENT
INFORMATION TECHNOLOGY
TOTAL INTERNAL SERVICE
REDEVELOPMENT OBLIGATION RETIREMENT FUNDS
$59,138,820 * $116,101,000
59,138,820
16.533.016
1,136,885
0
1,035.745
1,953.947
100,460
255,535
127,088
1,418,925
381,852
76,744
610,027
(419,948)
211,875
6,890,070
201,857
711,354
75,977
31,301,409
(1,362,550)
4,680.486
116,126
9.761,063
13,195,125
1,089,793
335,061
1,228,621
748,411
15.068,039
3,906,952
22,376,877
VILLAGE RDA OBLIGATION RETIREMENT FUND 5,349,430
VILLAGE LOW AND MODERATE INCOME HOUSING 7,517,741
sec RDA OBLIGATION RETIREMENT FUND 3.749,159
see LOW AND MODERATE INCOME HOUSING 223,147
TOTAL REDEVELOPMENT OBLIGATION RETIREMENT FUNDS 16,839.477
1.234,980
121,950
110,388
15,000
0
41,500
4,000
120,000
518,031
369.000
736,118
62.000
668,615
20.750
5.770.242
25.000
884,174
611,150
11,312.898
35,901.800
7.265,650
11.941,000
3.453.200
58.561.650
1.500,830
1.858,560
2.712,594
2.752.170
2.120.012
6,707,781
17,651,947
2,145,000
0
0
0_
2,145,000
$115,148,098
115,148,098
573,244
133,230
110,388
28,000
540,570
56.500
4.000
65.620
236,256
362,535
735,758
35,775
0
45,319
6,219,914
37,990
1,025,421
651,432
10,861,952
34,654,191
7,627,340
11,288,941
3,503,924
57,074,396
1,655,668
1,673.429
988,113
2,837,449
1,274,500
6,519,859
14,949,018
1,396,715
0
0
0
1,396,715
$60,091,722
0
0
0
0
0_
60,091,722
17,194,752
1,125,605
0
1,022,745
1,413,377
85,460
255,535
181,468
1,700,700
388,317
77,104
636,252
248,667
187,306
6,440,398
188,867
570,107
• 35,695
31,752,355
(114,941)
4,318,796
768,185
9,710,339
14,682,379
934,955
520,192
2,953,102
663,132
15,913,551
4,094,874
25.079,806
6.097.715
7.517,741
3,749,159
223,147
17,587.762
TOTAL OPERATING FUNDS $142,851,708 $205,772,495 $199,430,179 $0 $149,194,024
FOR THE GENERAL FUND ONLY THIS REPRESENTS UNDESIGNATED, UNRESERVED FUND BALANCE.
^1
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3
REVENUE SOURCE
ACTUAL
REVENUE
2010-11
PROJECTED
REVENUE
2011-12
ESTIMATED
REVENUE
2012-13
AS%
OF FY 11-12
PROJECTED
DIFFERENCE
2011-12 TO
2012-13
[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 8, 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
$48,409,518
26,386,132
11.568.576
4.649,535
3,581,368
910,976
95,506,105
483,273
372,945
1,066,496
1,922,714
767,581
822,704
1,590,285
285,268
681,264
668,756
2,471,422
1,694,304
660,770
6,461,784
2.219,842
3.015,094
2,652,756
$114,370,042
$48,107,000
27,561,000
12,545,000
4.785.000
3,689,000
950,000
97,637,000
53,000
375,000
799,000
1,227,000
665,000
870,000
1,535,000
350,000
628,000
640,000
2,525,000
1,500,000
673,000
6,316,000
900,000
2,321,000
3,700,000
977,000
$114,613,000
$47,805,000
28,782,000
13,482,000
4,883,000
3,556,000
1,086,000
99,594,000
0
377,000
496,000
873,000
596,000
780,000
314,000
563,000
573,000
2,581,000
1,527,000
685,000
6,243,000
916,000
$116,101,000
-0.6%
4.4%
7.5%
2.1%
-3.6%
14.3%
2.0%
-100.0%
0.5%
-37,9%
-28.9%
-10.4%
-10.3%
-10.3%
-10.4%
-10.5%
2.2%
1.8%
1.8%
-1.2%
10.9%
-0.7%
-13.0%
($302,000)
1.221,000
937,000
98,000
(133,000)
136,000
1,957,000
(53,000)
2,000
(303,000)
(354,000)
(69,000)
(90,000)
(159,000)
(36.000)
(65,000)
(67,000)
56,000
27,000
12,000
(73,000)
16,000
253,000
(25,000)
(127,000)
$1,488,000
• INTEREST IS CALCULATED ON AN AMORTIZED COST BASIS
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3
REVENUE SOURCE
ACTUAL
REVENUE
2010-11
PROJECTED
REVENUE
2011-12
ESTIMATED
REVENUE
2012-13
AS%
OF FY 11-12
PROJECTED
DIFFERENCE
2011-12 TO
2012-13
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
TOTAL LIBRARY GIFTS/BEQUESTS
LIGHTING AND LANDSCAPING DISTRICT NO. #2
LLD #2 FEES
INTEREST
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
OTHER
TOTAL MEDIAN MAINTENANCE
POLICE ASSET FORFEITURE ASSET FORFEITURES
INTEREST
TOTAL POLICE ASSET FORFEITURE
POLICE GRANTS
FEDERAL GRANT
INTEREST
TOTAL POLICE GRANTS
$69,730
89.988
1,000
199,045
601,205
960,968
82,679
17,632
100,311
104,732
6
13,753
405.785
950,929
1,032,304
2,389,018
41,690
1.623
5,000
48,313
3,450
195,312
2,589
415.424
16,118
356,330
6,507
358,994
148
253,850
612,992
49,473
10,521
59,994
247,572
(2,197)
$1,720,000
24.350
0
60,000
460,000
2,264,350
100,000
25,700
83,000
1,000
0
24,000
0
24,000
23,000
400
6,000
29,400
1,000
1,000
128,600
1,000
129,600
412,500
20,000
432,500
326,000
3,000
359,000
0
359,500
718,500
50,000
3,000
53,000
185.000
0
185.000
$174,000
580.000
980
260,000
220,000
1,234,980
100,000
21,950
121,950
110,388
0
15,000
34,000
0
7,500
41,500
120,000
0
120,000
489,632
28,399
518,031
362,000
7,000
358,029
0
378,089
736,118
50,000
12,000
62,000
668,615
0
-89.9%
2281.9%
0.0%
333.3%
-52.2%
-45.5%
0.0%
-14.6%
33.0%
-100.0%
31.4%
200.0%
0.0%
-100.0%
0.0%
-100.0%
47.8%
-100.0%
25.0%
41.2%
300.0%
-6.7%
-100.0%
18.7%
42.0%
19.8%
11.0%
133.3%
-0.3%
0.0%
5.2%
2.5%
0.0%
300.0%
17.0%
261.4%
0.0%
($1,546,000)
555,650
980
200,000
(240,000)
(1,029,370)
0
(3,750)
(3,750)
27,388
(1,000)
10,000
0
(24,000)
0
(24,000)
11,000
(400)
1,500
12,100
3,000
3,000
(8,600)
(1,000)
(9,600)
77,132
8,399
36,000
4,000
(971)
0
18,589
17,618
0
9,000
9,000
483,615
0
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3
REVENUE SOURCE
ACTUAL
REVENUE
2010-11
PROJECTED
REVENUE
2011-12
ESTIMATED
REVENUE
2012-13
AS%
OF FY 11-12
PROJECTED
DIFFERENCE
2011-12 TO
2012-13
I SPECIAL REVENUE FUNDS - CONTINUED
PUBLIC ART
INTEREST
TOTAL PUBLIC ART
RECREATION DONATIONS
DONATIONS & GRANTS
INTEREST
TOTAL RECREATION DONATIONS
RENTAL ASSISTANCE
FEDERAL GRANT
INTEREST
OTHER
TOTAL RENTAL ASSISTANCE
SENIOR DONATIONS DONATIONS
INTEREST
OTHER
TOTAL SENIOR DONATIONS
STREET LIGHTING
GOVERNMENT GRANTS AND LOANS
STREET LIGHTING FEES
INTERDEPARTMENTAL
INTEREST
TOTAL STREET LIGHTING
STREET TREE MAINTENANCE
TREE MAINTENANCE FEES
INTEREST
OTHER
TOTAL STREET TREE MAINTENANCE
TOTAL SPECIAL REVENUE FUNDS
$2,182
2,182
65.385
3.226
68.611
6.620,340
20,440
21,558
6,662,338
12,956
2,632
14,841
30,429
581,412
732,058
0
(1.696)
1,595,131
466,663
4,989
0
471,652
$14,361,535
$0
30.200
1,000
31,200
5,879,000
3,000
20,000
5,902,000
8,000
1,000
14,000
23,000
204,500
879,200
0
13,800
1,125,500
465,000
1,500
114,000
580,500
$12,043,250
$0
20,750
0
20,750
5,703,538
16.704
50.000
5,770,242
8,000
2,000
15,000
25,000
0
730,557
0
12,230
884,174
461,493
0
149,657
611,150
$11,312,898
0.0%
-31.3%
-100.0%
-33.5%
-3.0%
456.8%
150.0%
-2.2%
0.0%
100.0%
7.1%
8.7%
-100.0%
-16.9%
0.0%
-11.4%
-21.4%
-0.8%
-100.0%
31.3%
5.3%
-6.1%
$0
(9,450)
(1,000)
(10,450)
(175,462)
13,704
30,000
(131,758)
0
1,000
1,000
2,000
(204,500)
(148,643)
0
(1,570)
(241,326)
(3,507)
(1,500)
35,657
30,650
($730,352)
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3
REVENUE SOURCE
ACTUAL PROJECTED ESTIMATED AS% DIFFERENCE
REVENUE REVENUE REVENUE OF FY 11-12 2011-12 TO
2010-11 2011-12 2012-13 PROJECTED 2012-13
$18,160,522 $21,200,000 $23,300,000 9.9% $2,100,000
7,371,202 8,020,000 8,750,000 9.1% 730.000
2,755,099 2,930,000 2,930,000 0.0% 0
123,440 100,000 100,000 0.0% 0
120,051 125,000 125,000 0.0% 0
280,534 280,000 280,000 0.0% 0
(10,339) 2,800 1,000 -64.3% (1.800)
90,732 80,000 80,000 0.0% 0
89.560 90,000 90,000 0.0% 0
3,386,098 244,000 245,800 0.7% 1.800
32,366,899 33,071,800 35,901,800 8.6% 2,830,000
4,038,481 4,912,000 5,404,000 10.0% 492,000
525,300 575,000 625,000 8.7% 50,000
1,018,673 1,000,000 1,000,000 0.0% 0
73,721 125,000 100,000 -20.0% (25,000)
288,304 106,650 136,650 28.1% 30,000
5,944,479 6,718,650 7,265,650 8.1% 547,000
9,952,563 10,895,000 11,530,000 5.8% 635,000
20,491 20,000 20,000 0.0% 0
185,353 185,000 175,000 -5.4% (10,000)
79,510 90,000 80,000 -11.1% (10,000)
48,841 61,000 66,000 8.2% 5,000
237,374 80,000 70,000 -12.5% (10,000)
10.524,132 11,331,000 11,941,000 5.4% 610,000
127,950 163,000 160,000 -1.8% (3,000)
277,451 275,000 275,000 0.0% 0
54,286 53,000 53,000 0.0% 0
2,683,658 2,600,000 2,700,000 3.9% 100,000
296,556 218,943 265,200 21.1% 46,257
3,439,901 3,309,943 3,453,200 4.3% 143,257
$52,275,411 $54,431,393 $58,561,650 7.6% $4,130,257
[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
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
SI
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3
REVENUE SOURCE
ACTUAL
REVENUE
2010-11
PROJECTED
REVENUE
2011-12
ESTIMATED
REVENUE
2012-13
AS%
OF FY 11-12
PROJECTED
DIFFERENCE
2011-12 TO
2012-13
INTERNAL SERVICE FUNDS
WORKERS' COMPENSATION
INTERDEPARTMENTAL
INTEREST
OTHER
TOTAL WORKERS' COMPENSATION
RISK MANAGEMENT
INTERDEPARTMENTAL
INTEREST
OTHER
TOTAL RISK MANAGEMENT
SELF-INSURED BENEFITS
INTERDEPARTMENTAL
OTHER
TOTAL SELF-INSURED BENEFITS
VEHICLE MAINTENANCE
INTERDEPARTMENTAL
INTEREST
OTHER
TOTAL VEHICLE MAINTENANCE
VEHICLE REPLACEMENT
INTERDEPARTMENTAL
INTEREST
OTHER
TOTAL VEHICLE REPLACEMENT
INFORMATION TECHNOLOGY
FEDERAL GRANT
INTERDEPARTMENTAL
INTEREST
TOTAL INFORMATION TECHNOLOGY
TOTAL INTERNAL SERVICE FUNDS
$1,327,400
88,873
1,099,703
2,515,976
1,563,720
8,985
28,493
1,601,198
799,077
76,411
2,638,434
3,078
30,272
2,671,784
2,167,436
202,480
45,691
2,415,607
6,514,147
58,255
6,633,069
$16,713,122
$1,457,230
115,574
4,280
1,577,084
1,656,970
0
25,000
1,681,970
832,878
38,072
2,885,809
6,369
19,637
2,911,815
1,862,321
213,232
3,494
2,079,047
6,682,808
15,000
6,712,808
$15,833,674
$1,500,830
0
0
1,500,830
1,858,560
0
0
1,858,560
874,522
1,838,072
2,712,594
2,720,170
0
32,000
2,752,170
1,820,012
300,000
0
2,120,012
0
6,639,381
68,000
6,707,781
$17,651,947
3.0%
-100.0%
-100.0%
-4.8%
12.2%
0.0%
-100.0%
10.5%
5.0%
4727.9%
211.5%
-5.7%
-100.0%
63.0%
-5.5%
-2.3%
40.7%
-100.0%
2.0%
0.0%
-0.7%
353.3%
-0.1%
$43,600
(115,574)
(4,280)
(76,254)
201,590
0
(25,000)
176,590
41,644
1,800,000
(165,639)
(6,369)
12,363
(159,645)
(42,309)
86,768
(3,494)
40,965
0
(43,427)
53,000
(5,027)
$1,818,273
32
CITY OF CARLSBAD
OPERATING FUNDS
REVENUE ESTIMATES
Exhibit 3
REVENUE SOURCE
ACTUAL
REVENUE
2010-11
PROJECTED
REVENUE
2011-12
ESTIMATED
REVENUE
2012-13
AS%
OF FY 11-12
PROJECTED
DIFFERENCE
2011-12 TO
2012-13
[ REDEVELOPMENT OBUGATION RETIREMENT FUNDS j
VILLAGE RDA OBLIGATION RETIREMENT FUND
RENTAL INCOME
TAX INCREMENT
INTEREST
OTHER
TOTAL VILLAGE OPERATIONS / DEBT SERVICE
VILLAGE LOW AND MODERATE INCOME HOUSING
TAX INCREMENT
INTEREST
OTHER
TOTAL VILLAGE LOW AND MOD INCOME HOUSING
sec RDA OBLIGATION RETIREMENT FUND
INTEREST
OTHER
TOTAL SCCRDA OPERATIONS / DEBT SERVICE
see LOW AND MODERATE INCOME HOUSING
INTEREST
TOTAL SCCRDA LOW AND MOD INCOME HOUSING
TOTAL REDEVELOPMENT FUNDS
$14,862
2,820,708
40,155
7,718
2,883,443
705,177
357,718
0
1,062,895
96.129
0
96,129
3,380
$4,045,847
$8,800
2,665,000
10,000
2,800
2,686,600
399,680
17,000
15,000
431,680
15,000
3,300
18,300
1,000
1,000
$3,137,580
$0
2,130,000
15,000
0
2,145,000
$2,145,000
-100.0%
-20.1%
50.0%
-100.0%
-20.2%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-31.6%
($8,800)
(535,000)
5,000
(2,800)
(541,600)
(399,680)
(17,000)
(15,000)
(431,680)
(15,000)
(3,300)
(18,300)
(1,000)
(1,000)
($992,580)
[TOTAL OPERATING FUNDS $201,765,957 $200,058,897 $205,772,495 2.9% $5,713,598 [
23
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
Exhibit 4
DEPARTMENT
2009-10
ACTUAL*
2010-11
ACTUALS
%INCR (DEC)
2011-12 11-12 BUD
ESTIMATED 2011-12 2012-13 TO
EXPENDITURES BUDGET BUDGET 12-13 BUD
$298,245 $372,344 $352,729 -5.3%
1,192,657 1.336.460 1,336,908 0.0%
124,469 139.803 141,563 1.3%
1,282,132 1.491,771 1,504,476 0.9%
185,503 197.922 194,812 -1.6%
773,000 679,661 725,987 6.8%
685,930 698,511 792,303 13.4%
4,541,936 4,916,472 5.048.778 2.7%
3,682,088 3,383,709 3,511.305 3.8%
1.952,201 2,294,266 2.275.507 -0.8%
4,820,111 4.738,531 5.135,939 8.4%
10,454,400 10.416,506 10,922,751 4.9%
6,934.565 7.161,357 7,061,612 -1.4%
535,067 550,245 565,991 2.9%
7,469,632 7,711,602 7,627,603 -1.1%
10,519,653 10.412,121 10,308,502 -1.0%
12,076,572 13,115.867 12,718,661 -3.0%
22.596,225 23.527,988 23,027,163 -2.1%
16,923.225 16,931,875 17,540,315 3.6%
27,738,304 28.108,895 27,937,848 -0.6%
44.661.529 45,040,770 45,478,163 1.0%
10,007.090 8,883,352 8,840,761 -0.5%
269,643 281,317 281,483 0.1%
10.276.733 9,164,669 9,122.244 -0.5%
GENERAL FUND
POLICY AND LEADERSHIP GROUP
INTERNAL SERVICES
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
CITY COUNCIL
CITY ATTORNEY
CITY CLERK
CITY MANAGER
CITY TREASURER
COMMUNICATIONS
RECORDS MANAGEMENT
TOTAL POLICY AND LEADERSHIP GROUP
$333,004
1.294,939
105.532
1,598,471
189,895
765,065
777,147
5,064.053
FINANCE
HUMAN RESOURCES
PROPERTY AND ENVIROMENTAL MANAGEMENT
TOTAL ADMINISTRATIVE SERVICES
3,290,451
2,255,036
4.637,869
10,183,356
COMMUNITY AND ECONOMIC DEVELOPMENT
HOUSING AND NEIGHBORHOOD SERVICES
TOTAL COMMUNITY DEVELOPMENT
8,141,073
390,147
8,531,220
10,101,250
12,323,928
22,425,178
17.111,580
27,291,191
44,402,771
9,023,875
279.592
9,303.467
$352,145
1,327,414
176,655
1,348,850
181,262
793,887
775,002
4,955,215
3.472,814
2,320,758
4.660.673
10,454,245
7,309,222
400,062
7,709,284
10,528,095
11,867,576
22,395,671
16.121.182
27.670,820
43,792,002
8,312,277
260,580
8,572,857
NOTE: ESTIMATED EXPENDITURES MAY EXCEED ADOPTED BUDGET SINCE THEY INCLUDE PRIOR YEAR BUDGET APPROPRIATIONS.
* ACTUALS. ESTIMATED EXPENDITURES AND BUDGET HAVE BEEN ADJUSTED TO REFLECT THE CITYS REORGANIZATION IMPLEMENTATION.
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
Exhibit 4
DEPARTMENT
2009-10
ACTUAL*
2010-11
ACTUALS
2011-12
ESTIMATED
EXPENDITURES
2011-12
BUDGET
2012-13
BUDGET
%INCR (DEC)
11- 12 BUD
TO
12- 13 BUD
GENERAL FUND - CONTINUED
MISCELLANEOUS NON-DEPARTMENTAL
EXPENDITURES
COMMUNITY CONTRIBUTIONS 22,000 51,612 187,316 33,640 0 -100.0%
DUES & SUBSCRIPTIONS 55,081 62,931 54,481 55.000 55,550 1.0%
LEGAL SERVICES 42,231 58,605 51,945 80.000 80,000 0.0%
PROFESSIONAL SERVICES 37,039 130,552 379,386 88,000 316,100 259.2%
OTHER MISCSELLANEOUS EXPENDITURES 56,373 49,566 176,447 0 0 -
PERSONNEL RELATED 336,594 26,340 57,904 0 140,000 -
PROPERTY TAX & OTHER ADMINISTRATION 660,807 724,334 747,864 750,000 800,000 6.7%
TOTAL EXPEDNITURES 1,210,125 1,103,940 1,655.343 1,006,640 1,391,650 38.2%
TRANSFERS
INFRASTRUCTURE REPLACEMENT FUND 6.538,000 7,175,000 7,382,000 7,382,000 7,547,000 2.2%
TRANSFERS TO SELF INSURED BEN.-PERS SETASIDE 0 0 0 0 1,800,000 -
TRANSFERS TO GOLF COURSE: DEBT SERVICE 0 0 1,110,750 1.110,750 945,000 -14.9%
TRANSFERS TO GOLF COURSE: OPERATING SUBSIDY 0 0 533,842 295,000 0 -100.0%
TRANSFER TO LLD#1 (MEDIANS & TREES) 0 253,850 473,000 473,000 527,746 11.6%
TRANSFER TO STORM WATER PROGRAM 177,000 134,790 200,000 215,000 210,000 -2.3%
OTHER MISCELLANEOUS TRANSFERS 3,137,463 1,350,000 0 0 0
TOTAL TRANSFERS 9,852.463 8,913,640 9,699,592 9,475,750 11,029,746 16.4%
TOTAL MISCELLANEOUS NON-DEPARTMENTAL TOTAL MISCELLANEOUS NON-DEPARTMENTAL 11.062,588 10,017,580 11,354,935 10,482,390 12,421,396 18.5%
SUBTOTAL GENERAL FUND
CONTINGENCIES
TOTAL GENERAL FUND
110.972.633 107,896,854 111,355,390 111,260,397 113,648.098 2.1% SUBTOTAL GENERAL FUND
CONTINGENCIES
TOTAL GENERAL FUND
0 0 0 500,000 1,500,000 200.0%
SUBTOTAL GENERAL FUND
CONTINGENCIES
TOTAL GENERAL FUND $110,972,633 $107,896,854 $111,355,390 $111,760,397 $115,148,098 3.0%
CITY OF CARLSBAD
OPERATING FUNDS
BUDGET EXPENDITURE SCHEDULE
%INCR (DEC)
2011-12 11-12 BUD
2009-10 2010-11 ESTIMATED 2011-12 2012-13 TO
DEPARTMENT ACTUAL* ACTUALS EXPENDITURES BUDGET BUDGET 12-13 BUD
SPECIAL REVENUE FUNDS
AFFORDABLE HOUSING $489,965 $422,790 $530,047 $473,580 $573,244 21.0%
BUENA VISTA CHANNEL MAINTENANCE 81.213 84.852 293,511 293,511 133.230 -54.6%
CITIZEN'S OPTION FOR PUBLIC SAFETY 128.970 90.447 82,235 0 110.388 -
COMMUNITY ACTIVITY GRANTS 40,000 0 35,140 50,000 28.000 -44.0%
COMMUNITY DEVELOPMENT BLOCK GRANT 435.628 584.813 99,777 664,834 540,570 -18.7%
CULTURAL ARTS DONATIONS 83.512 78.703 89,029 76,960 56,500 -26.6%
LIBRARY AND ARTS ENDOWMENT FUND 13.025 6.605 6,000 4,000 4,000 0.0%
LIBRARY GIFTS/BEQUESTS 188.672 118.516 130,110 59,000 65,620 11.2%
LIGHTING AND LANDSCAPING DISTRICT NO. 2 214.478 192.045 220,147 216,847 236,256 9.0%
LOCAL CABLE INFRASTRUCTURE FUND 197,584 271.414 450,106 366,962 362,535 -1.2%
MEDIAN MAINTENANCE 599,179 715,442 842,662 730,814 735,758 0.7%
POLICE ASSET FORFEITURE 99,419 19,450 247,487 156,258 35,775 -77.1%
POLICE GRANTS 38,304 341,661 649,348 0 0 -
PUBLIC ART 6,542 187,672 0 0 0 -
RECREATION DONATIONS 26,933 28,482 42,333 44.408 45,319 2.1%
RENTAL ASSISTANCE 6,251,051 6,356,973 636,163 6,622.482 6,219,914 -6.1%
SENIOR DONATIONS 23,095 30,973 15,912 34.990 37,990 8.6%
STREET LIGHTING 1,287,285 2,268,015 1,108,995 1,002,765 1,025,421 2.3%
STREET TREE MAINTENANCE 552,035 645,070 634,669 643,892 651,432 1.2%
TOTAL SPECIAL REVENUE FUNDS $10,756,890 $12,443,923 $6,113,671 $11,441,303 $10,861,952 -5.1%
ENTERPRISE FUNDS
WATER OPERATIONS $29,330,780 $32,787,830 $32,013,625 $31,554,624 $34,654,191 9.8%
RECYCLED WATER OPERATIONS 6,419,797 5.926,059 7,409,233 7.404.022 7,627,340 3.0%
WASTEWATER OPERATIONS 10,003,751 7,961,081 10.408,759 11,058,124 11,288,941 2.1%
SOLID WASTE MANAGEMENT 2,660.596 2,544,050 3.141.223 3,500,924 3,503,924 0.1%
TOTAL ENTERPRISE FUNDS $48,414,924 $49,219,020 $52,972,840 $53,517,694 $57,074,396 6.6%
INTERNAL SERVICE FUNDS
WORKERS' COMPENSATION $1,596,033 $3,029,600 $2,393,578 $1,996,557 $1,655,668 -17.1%
RISK MANAGEMENT 1,118,322 2,275.616 1.356,594 1,381,044 1,673,429 21.2%
SELF-INSURED BENEFITS 959,026 983.628 785,000 1,098,265 988,113 -10.0%
VEHICLE MAINTENANCE 2,576,267 2.701.744 2.719,368 2,845,518 2,837,449 -0.3%
VEHICLE REPLACEMENT 1,042,260 1.380,253 1,388,853 1,716,500 1,274,500 -25.8%
INFORMATION TECHNOLOGY 5,971.417 6,180,017 7,018,150 6,299,288 6,519,859 3.5%
TOTAL INTERNAL SERVICE FUNDS $13,263,325 $16,550,858 $15,661,543 $15,337,172 $14,949,018 -2.5%
REDEVELOPMENT OBLIGATION RETIREMENT FUNDS
VILLAGE RDA OBLIGATION RETIREMENT FUND $7,776,839 $2,130,553 $340,000 $1,441,954 $1,396,715 -3.1%
VILLAGE LOW AND MODERATE INCOME HOUSING 82.053 78,209 70,191 73,558 0 -100.0%
sec RDA OBLIGATION RETIREMENT FUND 1.233.314 643,494 170,196 195,459 0 -100.0%
sec LOW AND MODERATE INCOME HOUSING 32,017 43,988 47,156 49,016 0 -100.0%
TOTAL REDEVELOPMENT $9,124,223 $2,896,244 $627,543 $1,759,987 $1,396,715 -20.6%
TOTAL OPERATING FUNDS $192,531,995 $189,006,899 $186,730,987 $193,816,553 $199,430,179 2.9%
General Fund
Non GF
$115,148,098
84,282,081
$199,430,179
NOTE: Estimated expenditures may exceed Adopted Budget since they include prior year budget appropriations.
* ACTUALS, ESTIMATED EXPENDITURES AND BUDGET HAVE BEEN ADJUSTED TO REFLECT THE CITY'S REORGANIZATION IMPLEMENTATION.
Exhibit 5
PERSONNEL ALLOCATIONS
FINAL
BUDGET
2010-11
FINAL
BUDGET
2011-12
PRELIMINARY
BUDGET
2012-13
2012-13
REQUESTED
CHANGES
CITY ATTORNEY 7.00 7.00 7.00 0.00
CITY COUNCIL 1.00 1.00 1.00 0.00
CITY MANAGER 8.00 7.00 7.00 0.00
CITY TREASURER 0.75 0.75 0.75 0.00
COMMUNICATIONS 2.75 2.75 2.75 0.00
COMMUNITY AND ECONOMIC DEVELOPMENT 54.00 50.00 47.00 (3.00)
FINANCE AND RISK MANAGEMENT 30.50 30.50 30.50 0.00
FIRE 88.75 87.75 87.75 0.00
HOUSING AND NEIGHBORHOOD SERVICES 11.00 13.00 10.00 (3.00)
HUMAN RESOURCES & WORKERS COMP 9.00 9.00 9.00 0.00
INFORMATION TECHNOLOGY 22.50 22.50 22.50 0.00
LIBRARY & ARTS 52.25 51.25 51.25 0.00
PARKS AND RECREATION 71.95 70.95 68.40 (2.55)
POLICE 162.00 162.00 161.00 (1.00)
PROPERTY AND ENVIRONMENTAL MANAGEMENT 41.60 39.60 40.55 0.95
RECORDS MANAGEMENT 8.00 6.25 6.00 (0.25)
TRANSPORTATION 58.40 54.40 54.40 0.00
UTILITIES 69.55 68.55 67.65 (0.90)
FULL AND 3/4 TIME LABOR FORCE 699.00 684.25 674.50 (9.75)
SUMMARY OF REQUESTED LABOR FORCE BY CATEGORY
2010-11 2011-12 2012-13 Difference
Full Time Personnel
3/4 Time Personnel in Full Time Count
Limited Term Personnel
Unfunded Full Time Positions
Hourly Full Time Equivalent Personnel
694.50
4.50
0.00
(6.00)
138.94
679.75
4.50
0.00
(3.00)
139.74
669.00
4.50
1.00
0.00
132.58
(10.75)
0.00
1.00
3.00
(7.16)
TOTAL LABOR FORCE* 831.94 820.99 807.08 (13.91)
2.1
EXHIBITS
FY 2012-13
MASTER FEE SCHEDULE CHANGES
For FY 2012-13 it is proposed tiiat general city and development related service fees be clianged by the
one year increase in their associated index, unless, the actual cost of providing the service can't accept
the indexed increase. In this instance the fee will be set at the cost of service.
For FY 2012-13 it is proposed that the Development Impact Fees be changed by the cumulative
percentage increase due to equity issues. These fees have been held in abeyance for the previous 3
years. Prior to the fees being held in abeyance, developers were paying the indexed fees. New
developers are currently paying a lower fee and it is estimated that development projects will not have
enough funds for development in those areas to be completed.
Below is a list of the indexes and the fees that are associated with them:
The following fees are proposed to change for FY 2012-13:
INDEX
ONE
YEAR ASSOCIATED FEES
West Urban CPI 2.80% General City and Development Related Service Fees
Ambulance
Inflation Factor 2.40% Ambulance Fees
INDEX
ONE
YEAR
4 YEAR
CUMULATIVE ASSOCIATED DEVELOPMENT IMPACT FEES
January ENR 0.90% 9.90%
PLDA Fees and License Tax on New Construction
Mobile Homes
April ENR 2.40% 11.70%
All Other Develop. Impact Fees ( Sewer Benefit Area
and Bridge & Thoroughfare District #2 )
December ENR 0.80% 9.90%
Bridge & Thoroughfare District #3, Sewer Connection,
Water District
April San Diego
CPI 3.00% 8.40% Habitat Mitigation Fee
Cal Trans CCI 2.00% N/A Traffic Impact Fees
NEW FEES:
o Library Borrowing - Mobile Device Loan Late Fee (Per Item, Per Hour) - The Library has
implemented a new program for patrons to check out mobile devices for free to use in the library
for one hour at a time. The late fee of $5 will apply after a 20 minute grace period for each hour the
equipment is late.
o A fee has been added for Affordable Housing Credit Per Unit - Cassia Heights (Southeast and
Southwest Cluadrants). It is currently being charged at $57,465 and needed to be added to the
Master Fee Schedule.
EXHIBITS
REDUCED FEES:
o The following fees are reduced to align with the FY 2011-12 Cost of Service Study.
o Business License - Master List of Active Business Licenses Fee to be reduced from $51 to $42.
o Permit - Motor Vehicle Repair to be reduced from $176 to $168.
o Trails Inspection to be reduced from $667 to $298.
o Water Meter - Construction Meter Relocation to be reduced from $34 to $27.
o Water Service Fee - After Hour Turn On to be reduced from $185 to $174
o Water Service Fee - Door Hanger (paper or electronic) to be reduced from $12 to $10.
o Police Proof of Correction Certification -All Others fee is not proposed to be indexed because
that would make the fee greater than the cost calculated in the Cost of Service Study,
o Administrative Fee - DUI to be reduced from $20 to $18.
o Environmental Monitoring Fee to be reduced from $218 to $206.
o Village Area Noticing Fee (Minor) cannot be fully indexed due to the Cost of Service Study
calculation. Fee will match the calculated cost of service,
o Village Review Permit Noticing Fee (Major) cannot be fully indexed due to the FY 2011-12 Cost
of Service Study calculation. Fee will match the calculated cost of service,
o Plumbing, Electrical, Mechanical Permit (not combined with Building Permits) cannot be fully
indexed due to the FY 2011-12 Cost of Service Study calculation. Fee will match the calculated
cost of service.
o The Affordable Housing Credit Per Unit - Villa Loma (Southeast and Southwest Quadrants) Fee will
decrease from $49,000 to $48,000.
o Street Light Energizing Fees set by SDG&E will be decreased due to a reduction in the induction rate.
DELETED FEES:
o The Tournament Field Rental categories will be eliminated to create more consistency for the
applicant. The tournament fee was a discounted fee for most rental categories. However, most of
the field use rentals are in category B therefore we do not anticipate any change in revenue.
o The fees for GIS 2005 2' Topographic Contour Lines and GIS 2005 Natural Color Aerial Photography
in *.tif format are being eliminated because the City Attorney's Office stated that this is a public
record and cannot be charged for. Waiting for a Supreme Court ruling that will either override or
confirm this change.
o For consistency purposes, all Parks & Recreation program and service fees that are currently on the
Master Fee Schedule will be removed as they are already in the Community Services Guide. This
affects fees related to aquatic programs for lessons and passes.
TITLE CHANGES:
o Library borrowing-Audio Visual Insurance Fee-Per Video Game/DVD to Library borrowing-Audio
Visual Insurance Fee-Per DVD
o Lost Damaged Video Game/DVD to Lost Damaged DVD
o Non Refundable Security Deposit for Leo Carrillo Ranch (Categories B-F) to read Partially Refundable
Security Deposit for Leo Carrillo Ranch (Categories B-F) and the terms to read $1,000 or payment in
full. If the reservation is cancelled at least 90 days before the rental, then $500 of the deposit is
refundable. Otherwise the entire $1,000 deposit is non-refundable.
o Senior Center Kitchen Warming - Hourly Rate - Category A-F to read Senior Center Kitchen Warming
& Small Lunch Room - Hourly Rate - Category A-F.
EXHIBITS
o Senior Center Art Room - Hourly Rate - Category A-F to read Senior Center Art Studio, Multipurpose
Room & Game Room - Hourly Rate - Category A-F.
o Trash Collection - Residential- Per Month to read Trash Collection - Residential - Per Month - 96 or
64 Gallon Cart.
o A title change has been made to Affordable Housing Credit Per Unit (Southeast and Southwest
Quadrants) to add the text Villa Loma. It now will read Affordable Housing Credit Per Unit - Villa
Loma (Southeast and Southwest Quadrants).
ANNUAL CHANGES;
o Fish & Game Fee which is set by state statute
NO CHANGE:
o Water and Sewer fees will be reviewed as part of the Water and Sewer Master Plan which is
scheduled to be completed in August 2012. Thus, it is proposed to not index these fees at this time
and wait until the completion of this plan to modify them.
1FY 2012‐13 Preliminary Operating Budget
2FY 2012‐13 Budget Calendar•Council Meetings:–May 22 –CIP workshop–June 5 – Operating Budget Workshop•Set public hearing for June 26–June 26 – Public hearing and adoption of Fiscal Year 2012‐13 Operating and Capital Budgets•Other Public Meetings:–June 7 – Citizens Budget Workshop ‐Faraday, 6 p.m.
3Citizens Budget Workshop•When: Thursday, June 7•Where: City of CarlsbadFaraday Center1635 Faraday Ave. Room 173B•Time: 6 p.m.For additional informationCity of Carlsbad Finance Department760‐602‐2430
4FY 2012‐13 Budget Overview•Fiscal Responsibility–Balanced budget–Long‐term sustainability–Healthy reserves•Improving Outlook–Revenues increasing–Economy improving
5FY 2012‐13 Budget Overview (continued)•Careful planning, responsible management–Core services maintained throughout recession–Budget reductions made to meet rising costs–Continue to prioritize efficient operations–Focus on local economic growth and retention–City is able to move forward on community projects and new initiatives
6City of CarlsbadFY 2012‐13 Combined Budget$229.9 millionOperating Budget – 87%Capital – 13%Capital13%
7National & Global Outlook•Employment•Housing•Interest rates•Fiscal policy•Overseas
8U.S. GDP Growth Rate3.93.82.52.30.41.31.831.90123452010 Q12010 Q22010 Q32010 Q42011 Q12011 Q22011 Q32011 Q42012 Q1Percent Change in Gross Domestic ProductSource: Bureau of Economic Analysis
9State Perspective•$16 billion deficit•Impact to former RDA•Economic signs of life
10
11Carlsbad’s Economic Profile•Home prices•Taxable sales•Tourism
12General Fund Revues12 $95.0 $100.0 $105.0 $110.0 $115.0 $120.0 $125.02005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12e 2012‐13eMillionsFiscal YearTotal General Fund Revenues
1313General Fund RevenuesFiscal Year 2012‐13 $116.1 million
141401002003004005006007008009002005 2006 2007 2008 2009 2010 2011 2012ThousandsFiscal YearMedian SFR Home Prices
15Assessed Values and Property Taxes15 ‐ 10.0 20.0 30.0 40.0 50.0 60.0 ‐ 5.0 10.0 15.0 20.0 25.0FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013eMillionsBillionsAV ResidentialAV Com/IndustProperty Taxes
16CY 2011 Sales Taxes by Category16General Retail40%Food Products14%Transportation30%Construction2%Business to Business13%Misc.1%Sales Tax by CategoryFourth Quarter 2011
1717
18Transient Occupancy Taxes
1919FY 2012‐13 Operating Revenues by Fund TypeGeneral56%Special Revenue5%Redevelopment Obligation Retirement1%Enterprise29%Internal Service9%$205.8 million
202012‐13Proposed Operating Budget
21City Council’s goals, visions & priority projects10 year forecast monitoredBudget policies set for new fiscal yearDepartments submit requests to FinanceBudget reviewed and City Manager makes recommendations to City CouncilCity Council adopts budget & program optionsOperating Budget Process
22FY 2012‐13 Budget Policies•Provide a balanced budget•Plan for a balanced budget for future years•Minimize service level impacts to citizens
23FY 2012‐13 Budget Policies (continued)•No increase in number of positions, unless for new facilities•No growth in maintenance & operations•Identify efficiencies and reductions if possible to offset known budget increases•Budget discretionary items at minimal levels
24FY 2012‐13 Full‐Time Position Changes•Elimination of 10.75 full‐time positions:–3 previously unfunded–2 related to Redevelopment Agency elimination–3.5 from Parks and Recreation efficiencies–1 Building Inspector–1 Water Meter Reader–0.25 Remainder of Records Manager position•Addition of 1 full‐time , limited‐term position:–Facility Manager ‐Carlsbad Safety Training Center
251.0 Parks Maintenance Worker II1.0 Planning Technician0.25 Records Manager1.0 Senior Building Inspector1.5 Tree Trimmer II251.0 Assistant Planner1.0 Building Inspector II1.0 Code Compliance Specialist II1.0 Maintenance Aide1.0 Water Meter Reader1.0 Office Specialist IIFY 2012‐1310.75 Full‐Time Position Eliminations
26FY 2012‐13 Full‐Time Position Changes (continued)•Total citywide full‐time position count:684.25 FY 2011‐12 total ( 9.75) Less: net position changes**674.50 FY 2012‐13 total**A total of 43.25 positions have been eliminated citywide since FY 2009‐10.
27General Fund History of Budgeted Full‐Time Positions695.75717.25717.75716.25699.00684.25674.50
28FY 2012‐13 Part‐Time Position Changes•Elimination of 7.91 hourly FTE positions•Addition of 0.75 FTE positions for maintenance of the new Carlsbad Safety Training Center•Total Citywide Hourly FTE (full‐time equivalent) position count:139.74 FY 2011‐12 total ( 7.16) Less: net position changes132.58 FY 2012‐13 total
2929FY 2012‐13 Budget Overview•Total proposed citywide Operating Budget : $199.4 million•Increase of $5.6 million (2.9 %) from FY 2011‐12 Adopted Budget•Significant fund increases:•$3.3 million – General Fund•$3.6 million –Enterprise Funds
30FY 2012‐13 Operating BudgetTotal Budget = $199.4 millionIn Millions
31General Fund Budget Comparison$72.8$73.3$29.5$30.8$9.5$11.0020406080100120140FY 2011‐12 FY 2012‐13TransfersM & O and CapitalOutlayPersonnelTotal $115.1In MillionsTotal $111.831
32General Fund History of Budgeted Expenditures
3333FY 2012‐13 General FundTotal Budget = $115.1 millionIn Millions
3434FY 2012‐13General Fund Budget Recap Revenues $ 116.1 millionBudget Requests $ 115.1 millionProjected Remainder $ 1.0 million (0.9%)
3535General Fund BalanceEstimated Balance at 7/01/12 $ 59.1 millionPlus: FY 2012‐13 Remainder 1.0 millionLess: FY 2012‐13 Advances ‐0‐Estimated Balance at $ 60.1 million*6/30/13 *Excludes impact of Council Program Options
3636FY 2012‐13 Special Revenue FundsSection 8 $6.2 (57%)Maintenance Districts $2.8 (25%)Block grant $0.5 (5%)Other $1.4 (13%)Total Budget = $10.9 millionIn Millions
37FY 2012‐13Special Revenue FundsExpenditure highlights:•Section 8 Rental Assistance ‐$6.2 million•Special Assessment Districts ‐$2.8 million•Community Dev. Block Grant ‐$0.5 million•Community Activity Grants ‐$28,000
3838FY 2012‐13Internal Service FundsTotal Budget = $14.9 millionIn Millions
39FY 2012‐13Internal Service FundsExpenditure highlights:•Fleet Replacement Equipment ‐$1.2 million•I.T. Replacement Equipment‐$800,000
4040FY 2012‐13 Enterprise FundsWater/Recyled Water $42.3 (74%)Wastewater $11.3 (20%)Solid Waste/Storm Water $3.5 (6%)Total Budget = $57.1 millionIn Millions
41Water Purchase Cost Increases•Purchased potable water from San Diego County Water Authority–Wholesale water – 11% increase–Fixed charges –8.5% increase•Purchased recycled water–28% increase over last 2 years
42Utility Rate IncreasesJanuary 2013MAXIMUM42•Water rates – 10% •Sewer charges –6%
43FY 2012‐13 Key Areas of Focus43
44Background•January Council goal setting workshop•Discussed trends affecting our city•Identified key areas of focus–Above and beyond day to day core city services
45Priorities and Resources•Focus on fulfilling the community vision•Even greater emphasis on efficiency and value•Money saved supports enhanced services45
46•Ensuring future financial health46Ensuring StrongFinancial Health
47Sustainable Organization•Focus on quality and efficiency–Changing the way we do business–High quality at best cost–Best value services–Pay for performance47
48Technology Strategy•City Link knowledge and service hub•Free public wireless access at parks and community centers•New permitting technology•Increased online public engagement•Exploring new public safety technology48
49•Creating quality jobs in a new economy49Creating Quality Jobsin a New Economy
50Quality Jobs in a New Economy•Business retention•Talent attraction•Education hub•Partnerships50
51•Land use in a changing community51Adapting to ChangingLand Use Needs
52Balancing Land Use Policies With a Changing Community•Envision Carlsbad–General Plan update•Land use–Zoning Ordinance update•Development standards52
53Balancing Land Use Policies With a Changing Community•Hilton Oceanfront Resort •LEGOLAND Hotel•Palomar Commons/ Lowes•La Costa Town Square•Plaza Camino Real redevelopment53
54•Safe and efficient transportation54Safe and Efficient Transportation
55Livable Streets•Streets are for moving “people”•Improves traffic flow•Enhances safety•Creates a sense of place55
56Livable Streets •State Street roundabout •Pedestrian crossings (streets and railroad)•Update policies and standards56
57Traffic Management•Residential Traffic Management Program–Part of livable streets–Makes neighborhoods safer57
58Traffic Management•Traffic Signal Program–El Camino Real, Palomar Airport Road, Faraday, Carlsbad Village Drive complete–Wait times already reduced–Next up: Cannon, College, Ranch Santa Fe, Aviara Parkway58
59•Maintaining a safe community59Maintaining a Safe Community
60Safe Community•Safety Training Center•Fire Station 3 relocation•Regional Communication System•Barrio outreach and coordination•Securing city buildings and parks60
61•Meeting changing parks and recreation needs61Meeting Future Parks andRecreation Needs
62Changing Parks and Recreation Needs•Updating plans to meet future needs•Trails master plan•Alga Norte Community Park •Carlsbad Boulevard realignment62
63Committed to Open Space•Habitat Management Plan–Council goal of 40% citywide HMP Open Space–6,480 acres of dedicated HMP Open Space•Current public and private HMP ownership lands–5,850 acres of dedicated HMP Open Space–90% of HMP Open Space goal•Partnership with Resource Agencies and environmental advocacy groups
64Open Space•Future open space development acquisitions•La Costa Glen 108 acres•Carlsbad Raceway 46 acres•Cantarini Ranch 55 acres•Actively pursuing city acquisition opportunities–Review open space acquisitions on a quarterly basis–Partner with willing sellers
65Additional Priorities•Fostering next generation of leaders•Maintaining quality utility services•Securing new water sources•Library 50‐plus project•Car Country •Hydroelectric project65
66Fee Update
67Fee Descriptions•General city fees–Charged for the usage of city services and property•Development related service fees–Charged to recover the cost of staff time & materials spent on development related activities•Development impact fees–Charged to recover the cost that growth is anticipated to have on city infrastructure67
6868Fee Escalators•Updated by change in West Urban Consumer Price Index (CPI)–General city fees–Development related service fees •Updated by change in Engineering News Record Index (ENR)–Development impact fees
69Cost of Service•Cost of Service Study was completed in FY 11‐12.•A comparison of the cost to provide the service and the fee requires that a number of fees be reduced.
70Fee EscalatorsINDEXONE YEAR ASSOCIATED FEESWest Urban CPI 2.80%General City and Development Related Service FeesAmbulance Inflation Factor2.40%Ambulance Fees
71Impact Fees to Remain Unchanged•Water Connection•Sewer Connection•Parks in Lieu•Public Facilities
72Fee EscalatorsINDEXONE YEAR4 YEAR CUMULATIVE ASSOCIATED DEVELOPMENT IMPACT FEESJanuary ENR 0.90% 9.90%PLDA FeesApril ENR 2.40% 11.70%Other Development Impact Fees•Sewer Benefit Area•Bridge & Thoroughfare District #2 December ENR 0.80% 9.90%Bridge & Thoroughfare District #3April San Diego CPI3.00% 8.40%Habitat Mitigation Fee
73Traffic Impact Fees•Ordinance CS‐028 states “that the traffic impact fee shall be adjusted annually as part of the budget process, by 2 percent or the annual percentage change in the Caltrans Construction Cost Index, whichever is higher”•TIF fees will increase on average from $216 to $221
74Other Recommended Fee Changes•Decrease in Street Light Energizing Fee•Decrease in Fees that exceed COS•Addition of Late Fee for Mobile Devices•Increase in Leo Carrillo Ranch Security Deposit
75FY 2012‐13 Budget Calendar•Council Meetings:–May 22 –CIP workshop–June 5 – Operating Budget Workshop•Set public hearing for June 26–June 26 – Public hearing and adoption of Fiscal Year 2012‐13 Operating and Capital Budgets•Other Public Meetings:–June 7 – Citizens Budget Workshop ‐Faraday, 6 p.m.
76Citizens Budget Workshop•When: Thursday, June 7•Where: City of CarlsbadFaraday Center1635 Faraday Ave. Room 173B•Time: 6 p.m.For additional informationCity of Carlsbad Finance Department760‐602‐2430
77FY 2012‐13 Preliminary Operating Budget
78
79Information TechnologyDeleted fees:•GIS 2005 2’ Topographic Contour Lines•GIS 2005 Natural Aerial Photography in *.tif format
80FY 2012‐13PROGRAM OPTIONS1. Economic Development Program2. Treasury FTE Increase3. Funding School Resource Officers4. Carlsbad Village‐Halloween on Elm event5. Brownley Funds6. CalPERS Unfunded Liability7. Agua Hedionda Dredging
81Library FeesNew Fee:Library Borrowing – Mobile Device Loan Late Fee ‐$5 per hour
82Franchise Taxes
83Parks & Recreation FeesTitle/Fee Change•PartiallyRefundable Security Deposit –Leo Carrillo Ranch –Categories B‐FDeleted Fees•Tournaments (Hourly Rates) Categories A‐F•Fees that are listed in the Community Services Guide
84Annual Index Changes•West Urban CPI–CY 2008 3.5%–CY 2009‐0.4%–CY 2010 1.1%–CY 2011 2.8%–Cumulative 7.2%•ENR Index–April 2009 6.4%–April 2010‐0.3%–April 2011 2.8%–April 2012 2.4%–Cumulative 11.7%Recommend general city and development related service fees increase by 1 year index change and Development Impact Fees by the cumulative index change.
85Discussion•Impact by Department of reducing costs•(e.g.. Parks and Recreation plans, Police changes)
86Housing & Neighborhood ServicesReduced Fees:Affordable Housing Credit Per Unit – Villa Loma (Southeast and Southwest Quadrants) from $49,000 to $48,000New Fees:Affordable Housing Credit Per Unit – Cassia Heights (Southeast and Southwest Quadrants) ‐$57,465
8787Infrastructure Replacement Fund•Funds the replacement of buildings and facilities (non water or sewer)•Annual contribution–FY 2009‐10 – $6.5 million–FY 2010‐11 – $7.2 million–FY 2011‐12 – $7.4 million–FY 2012‐13 – $7.5 million
88Water Enterprise FY 2012‐13 Expenditures$42.3 million88$4,177,486, 10%$12,039,723, 28%$18,790,200, 44%$5,293,000, 13%$2,036,009, 5%PersonnelM&OWater PurchasesTransfersDebt Payments
89Wastewater EnterpriseFY 2012‐13 Expenditures$11.3 million89$2,216,583 20%$3,241,45329%$2,200,905, 19%$3,630,000, 32%PersonnelEncinaCharges M&OReplacementFunding
90Wastewater EnterpriseIncreases in OperationsFY 2012‐13 to FY 2011‐12$230,000 (2.1%)•Encina charges –increase of $83,000•One‐time funding:–Maintenance in environmentally sensitive areas = $125,000 90
91Solid Waste / Storm WaterEnterprise Budget RequestFY 2012‐13 = $3.5 million91$1,542,777, 44%$1,372,726, 39%$588,421, 17%Storm DrainMaintenanceStorm WaterProtectionSolid WastePrograms
Our Natural LegacyS.O.S. Save Our SpacePreserve CalaveraCoastal North San Diego County1
Mr. Mayor & City Council Members - You’ve Got Mail!Preserve CalaveraCoastal North San Diego County2
Worth a thousand wordsOver the last few weeks hundreds of residents have mailed you postcards. These cards sent a message asking you to allocate some reserve funds for Open Space Acquisition. The images of some of our beautiful natural lands on these cards show the importance of preserving this legacy. Here are some of those images …
4
MT. CalaveraWALK, RUN OR BIKE THE TRAILS5
Village “H” North6
7
Kato/Manada
9
The Hills are Alive10
11
ge H - a place of natural
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20Preserving our Natural Resources
21
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23
A teachable moment24
s a Community effort to preserve our open space
legacy for future generationsis in your hands.
iMacProductions