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HomeMy WebLinkAbout2013-05-28; City Council; 21247; FY 2013-14 Preliminary Operating Budget WorkshopCITY OF CARLSBAD - AGENDA BILL 14 21.247 AB# MTG. DEPT. FIN 05/28/13 Fiscal Year 2013-14 Preliminary Operating Budget Worl^shop DEPT. DIRECTOR QM^ CITY ATTORNEY " CITY MANAGER RECOMMENDED ACTION: Accept report. Set public hearing for June 11, 2013. ITEM EXPLANATION: The Operating Budget work session on May 28, 2013 is an opportunity for the City Council to review the Fiscal Year 2013-14 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 14, 2013 City Council meeting. In addition to these meetings, a Citizens Budget Workshop will be held on Thursday, May 30, 2013 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 2013-14 Operating Budget and Capital Improvement Program is scheduled for the June 11, 2013 City Council meeting. 2013-14 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 continuing to adapt to changing needs and expectations. 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 while delivering the most cost effective, high quality services. Significant ongoing operating expenses were identified and incorporated in the FY 2013-14 budget where necessary, to ensure the budget reflects all of 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 find efficiencies and DEPARTMENT CONTACT: Helga Stover 760-602-2429 helga.stover@carlsbadca.qov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED • CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • Council received the presentation and set the public hearing for June 11, 2013. Page 2 reduce costs in other areas to maintain a balanced budget without impacting services provided to the community. The Carlsbad economy has been improving and, with the addition of hotel, retail and commercial projects, as well as a strengthening regional economy, revenues are trending upwards, particularly in city sales and hotel tax revenues. The real estate market appears to be in full recovery, and the national and regional economic outlook is for continued slow growth. Despite these positive trends, continued challenges include inflation, higher taxes, state and federal challenges, and unknown implications of regulatory changes, such as those associated with the implementation of the Affordable Care Act. 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 3.2 percent in FY 2013-14 compared to the previous year's projected revenue. The Preliminary Operating Budget for FY 2013-14 totals $211.1 million citywide, which represents an increase of $900,000, or 0.4 percent, as compared to the FY 2012-13 Adopted Budget. Operating revenues are estimated at $219 million, which is about a $3.1 million, or 1.4 percent, increase over the current year's projections. The recommended General Fund Operating Budget is $115.1 million, with estimated revenues of $115.8 million. This is a 0.8 percent increase in the estimated General Fund revenues as compared to the projected FY 2013-14 revenues, and a 0.6 percent increase in General Fund budgeted expenditures compared to the FY 2013-14 adopted budget. General Fund Estimated Revenues - The majority of the city's General Fund revenues come from taxes. In the upcoming year, it is expected that property tax revenue will be approximately $48.4 million. This is an increase of 1.5 percent from the revised FY 2013-14 projections. This is based on improving assessed valuations, as provided by the County Assessor in May 2013, partially offset by new construction that has occurred over the past year. Sales taxes are expected to total $31.1 million for FY 2013-14, an increase of 4 percent compared to the FY 2012-13 revised projections. These estimates assume that the improvements we have seen in the city's sales tax revenues in FY 2013-14 will continue over the next year, at approximately the same rate. The city's sales tax base is heavily weighted in the transportation and retail sectors. New automobile sales, which comprise approximately 25 percent of Carlsbad's sales tax revenue, are expected to remain healthy in the coming year. Revenues from auto sales are approaching pre-recession levels of slightly over $6 million. General retail sales tax, which comprises approximately 40 percent of annual sales tax revenue, continues to grow, but at a decreasing rate. Additions to the sales tax base, including the opening of the LegoLand Hotel and Palomar Commons, will provide increased sales tax revenue. Like auto sales, retail sales tax receipts are expected to grow at a slower rate in FY 2013-14. 3\ Page 3 The FY 2013-14 revenues for Transient Occupancy Taxes (TOT) are estimated at $14.7 million for FY 2013-14, an increase of 5.8 percent compared to FY 2012-13 estimates. Growth in the TOT base (existing hotels) is expected to increase by 3 percent in FY 2013-14, driven primarily by forecast increases in the average daily rate paid for rooms. The LegoLand Hotel, a new hotel, will add 250 additional rooms. Franchise taxes are estimated at $5 million for FY 2013-14, an increase of 2 percent over the FY 2012-13 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 increase by 35.3 percent in FY 2013-14, as a result of increased projections for industrial and commercial development. Development Revenues are estimated to be $2.3 million in FY 2013-14, as compared to $1.7 million projected for FY 2012- 13. 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 $115.8 million, which represents a $700,000, or 0.6 percent, increase as compared to the FY 2012-13 Adopted Budget. The overall increase is mainly attributed to Maintenance and Operations costs which are increasing $800,000, primarily due to the opening of Alga Norte Park, expected to open to the public in FY 2013-14. Personnel cost increases are due to additional staff for Alga Norte Park operations, anticipated increases in health insurance rates, higher retirement rates as projected by CalPERS, and previously negotiated wage increases. The increases were largely offset by reductions in full-time positions, as well as retirement costs resulting from labor negotiations in prior years. A few expenditures are discussed in more detail below: Proposed Position Changes - A net decrease of 6.75 full-time positions is reflected in the FY 2013-14 Preliminary Operating Budget, as compared to the FY 2012-13 Adopted Budget. The total decrease includes the elimination of 12 positions identified through the city's expenditure reduction efforts as well as the addition of 4.25 full-time and 1.0 limited-term positions. These eliminations are in addition to the 43.25 positions eliminated over the past four fiscal years. The FY 2013-14 Operating Budget includes the elimination of the following 12 full-time positions: Park Planning Manager Recreation Area Manager Senior Office Specialist Utilities Director 2.0 Associate Engineer 1.0 1.0 Deputy City Manager 1.0 1.0 Meter Services Worker II 2.0 2.0 Office Specialist II 1.0 1.0 Park Maintenance Worker II The net increase in hourly full-time equivalent (FTE) staff totaled 18 positions. This included the addition of 17 hourly FTE's for the new Alga Norte Park, 0.50 hourly FTE for the Records Division and 0.50 hourly FTE for the City Attorney's Office. 5 Page 4 These changes reduce the city workforce from 674.50 to 667.75 full-time employees. Hourly, full-time equivalent positions increase from 132.58 to 150.58. 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 opened in FY 2012-13, and additional funds and staffing for operating and maintaining the facility have been incorporated in the FY 2013-14 Preliminary Operating Budget in the Property and Environmental Management Department. Also, funding has been added to the Parks and Recreation Department and to the Property and Environmental Management Department budgets to operate and maintain Alga Norte Park, expected to open to the public at the end of the 2013 calendar year. Capital Outlay - There are no major capital outlay purchases planned in the General Fund for FY 2013-14 Other Budget Requests - The FY 2013-14 Preliminary Operating Budget also includes the following transfers to other funds: • $7.8 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 2012-13. • $253,000 to the Storm Water Program for reimbursement for the General Fund portion of Storm Water expenses. • $545,000 to the Median Maintenance and Street Tree Maintenance Special Revenue Funds to cover cash shortfalls, as annual assessments collected from property owners do not cover annual operating expenditures. • $989,549 to the city's municipal golf course for debt service. • $700,000 to the City's Self-Insured Benefits Fund as a set aside to address 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 2013-14, which is equal to the FY 2012-13 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 $69 million, an increase of $2.3 million, or 3.4 percent, over current year projections. The budgeted expenditures are estimated at $66.1 million for FY 2013-14, which is an increase of $1.5 million, or 2.2 percent, over the FY 2013-14 Adopted Budget. The most significant change in Water Operations is due to the estimated increase in the cost of water purchased from the San Diego County Water Authority (5.5 percent increase in fixed costs and a 6 percent increase in variable costs due to an estimated increase from $1,063 Page 5 to $1,127 per acre foot effective January 1, 2014. Carlsbad customers decreased water consumption for several years; however, in FY 2012-13 the quantities purchased began to increase. The quantities purchased are expected to continue to increase slightly in FY 2013-14 as in FY 2012-13. The Operating Budget also includes funding for depreciation replacement transfers related to growth and aging ofthe water infrastructure system. Wastewater Operations are projected to decrease 1.3 percent, or $100,000, over the Adopted Budget for FY 2012-13. This decrease in the Operating Budget is primarily due to a reduction in personnel related costs and Encina services costs. Golf Course operations are expected to remain relatively flat for FY 2013-14. The Golf Course budget was previously done on a calendar year basis; beginning July 1, 2013 the budget and financial reporting will occur on a fiscal year basis. Revenues from Special Revenue Funds are expected to total $10.7 million, a $3.6 million or 25.4 percent, decrease from FY 2012-13 projections. The most notable decrease is in the Affordable Housing Trust Fund, which received $1.1 million in one-time affordable housing credits during FY 2012-13. Expenditures are budgeted at $10.7 million. This is $163,000, or 1.5 percent, lower than the FY 2012-13 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 $1.3 million, and have decreased by $100,000, or 7.5 percent, from the previous year. 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. A Cost of Service Study was updated this past fiscal year to verify that fees don't exceed the cost of providing the service. In addition to changes made based on the Cost of Service Study, 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. These fees are increased annually by the increase in the annual West Urban Consumer Price Index (CPI) published by the Bureau of Labor and Statistics, which reflects the cost of inflation. The one year change in CPI for FY 2013-14 is 2.2 percent. In addition to the general increase mentioned and changes that were the result of the updated Cost of Service Study, the following fees are proposed to change for FY 2013-14: New Fees: • Police - Oversize Vehicle Fee - This fee was implemented in FY 2012-13 and will be placed on the new Master Fee Schedule. Page 6 • Property and Environmental Management - A fee structure for the rental of the Safety Training Center was developed and will be added to the Master Fee Schedule. • Parks and Recreation - The new Alga Norte facility will be completed in FY 2013-14 and a new fee structure for its use will be added to the Master Fee Schedule. • Utilities - Waste Management has added a fee for Trash Collection - Commercial/Muiti Family Scout Service - $46.31. Fees to be increased: • Trash Removal - Waste Management increased these fees on January 1, 2013. Fees to be decreased: • Utilities - Water Meter Deposit - Construction Meter Installation/Removal is changing from $1,020 to $877. • Utilities - Water Service Fee - Accounts Scheduled for Termination for Non-Payment is changing from $15 to $14 Fees to be deleted: Utilities - Group I Residential Mobile Home Rate Per Unit 90 percent of water used. Utilities - Group VI Large Volume Users - Bio Hydration Research Lab Inc. Rate Per Hundred Cubic Feet, Min. $24.53 per month. Utilities - Group VI Large Volume Users - Culligan - Rate Per Hundred Cubic Feet, Min. $24.53 per month. Utilities - Group VI Large Volume Users - Beckman Micro Operations- Rate Per Hundred Cubic Feet, Min. $24.53 per month. For consistency purposes, all Parks & Recreation fees that are currently on the Master Fee Schedule will be removed and placed in the Community Services Guide. DEVELOPMENT RELATED SERVICE FEES These are fees charged to recover the cost of staff time and materials spent on development related activities. 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 2013-14, Development Related Service fees will be increased by the one year change in the associated index. Other fee changes are discussed below: New Fees: • Community & Economic Development - Easement Document Processing and Recording (Minor) - $115 • Community & Economic Development - Village Area Sidewalk Outdoor Dining and Curb Cafe - $1,200. This fee was implemented in FY 2012-13 and is now being added to the Master Fee Schedule. Page 7 Development Related Service Fees that are increasing: • Fish and Game Fee - EIR - is increasing from $2,969 to $3,045.25. This fee is set by state statute and is a pass through fee. • Fish and Game Fee - Negative Declaration - is increasing from $2,151.50 to $2,206.25. This fee is set by state statute and is a pass through fee. • Street Light Energizing Fees - will be decreasing due to an increase in the induction rate charged by San Diego Gas & Electric. Development Related Service Fees that are being deleted: Finance - Research and Design Time (By Written Request) Per Hour Minimum $25 Based on Hours to Completion is being deleted as it is never used. Fire - Automatic Sprinkler System - Tenant Improvement Inspection Fee - Qty 1 at $68 each. Fire - Other Fixed Fire Systems - Hood and Duct - Inspection Fee - Qty 1 at $68 each. Fire - Other Fixed Fire Systems - Special Chemical Agent - Inspection Fee - Qty 1 at $68 each. Fire - Other Fixed Fire Systems - Standpipe - Inspection Fee - Qty 2 at $67.50 each. DEVELOPMENT IMPACT FEES These fees are used to recover the cost that growth will have on city infrastructure. These fees will be increased by the index stated in the respective resolution or ordinance establishing the fee, typically the Engineering News Record (ENR) construction cost index. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code Section 21065, giving a presentation on the preliminary operating budget does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. EXHIBITS: 1. Fiscal Year 2013-14 Preliminary Operating Budget (Overview) 2. Operating Funds, Projected Fund Balances for FY 2013-14 and FY 2013-14 3. Operating Funds, Revenue Estimates for FY 2013-14 and FY 2013-14 4. Operating Funds, Budget Expenditure Schedule FY 2010-11 through FY 2013-14 5. Personnel Allocation Schedule FY 2010-11 through FY 2013-14 6. Proposed Fee Changes - June 2013 The Preliminary Operating Budget and Capital Improvement Program for Fiscal Year 2013-14 are on file with the City Clerk 7 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 The Preliminary Operating Budget for Fiscal Year 2013-14 totals $211.1 million, with revenues for the year estimated at $219 million. General Fund revenues are estimated at $121 million and General Fund budgeted operating expenditures are $115.8 million. REVENUE The following table shows the total operating revenues anticipated to be received by the city for FY 2012-13, as well as those estimated for FY 2013-14. REVENUE SUMMARY BY FUND TYPE (in Millions) FUND PROJECTED 2012-13 ESTIMATED 2013-14 $ CHANGE % CHANGE GENERAL FUND SPECIAL REVENUE ENTERPRISE INTERNAL SERVICE REDEV. OBLIG. RETIREMENT $ 117.3 14.4 66.7 17.5 0.1 $ 121.0 10.7 69.0 17.0 1.3 $ 3.7 (3.7) 2.3 (0.5) 1.2 3.2% -25.7% 3.5% -2.9% 1200.0% TOTAL $ 216.0 $ 219.0 $ 3.0 1.4% Revenue estimates for the Operating Budget indicate that the city will receive a total of $219 million in FY 2013-14, a $3 million, or 1.4 percent, increase over the prior year's projections. The significant changes from the prior year include a $3.7 million, or 3.2 percent, increase in the General Fund for increases in Property Tax, Sales Tax and Transient Occupancy Tax revenues. The Special Revenue Funds show a decrease of $3.7 million, or 25.7 percent from the prior year due to decreases in grant funding and affordable housing fees. Enterprise revenues are expected to increase $2.3 million, mainly due to increased water sales revenues needed to pay for the rising cost of water purchased from the San Diego County Water Authority. More information on the city's revenue sources can be found in the discussion that follows. General Fund General Fund revenues provide a representative picture of the local economy. These revenues are of particular interest as they fund basic city services, such as Police, Fire, Library, Street and Park Maintenance, and Recreation programs. The table below provides a summarized outlook for the major General Fund revenues. SIGNIFICANT GENERAL FUND REVENUES (In Millions) PROPERTY TAX SALES TAX TRANSIENT OCCUPANCY TAX FRANCHISE TAXES BUSINESS LICENSE TAX DEVELOPMENT REVENUES ALL OTHER REVENUE TOTAL PROJECTED 2012-13 $ 47.7 29.9 13.9 4.9 3.5 1.7 15.6 117.2 $ ESTIMATED 2013-14 $ 48.4 31.1 14.7 5.0 3.7 2.3 15.7 120.9 $ $ CHANGE B-1 0.7 1.2 0.8 0.1 0.2 0.6 0.1 3.7 % CHANGE 1.5% 4.0% 5.8% 2.0% 5.7% 35.3%| 0.6% 3.1% 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit i General Fund revenue sources indicate that Carlsbad is benefitting from an improving state and local economic climate. Our largest revenue sources, which are derived from property tax, sales tax, and transient occupancy tax (TOT), are expected to improve in FY 2013-14! Revenues from sales tax and TOT are highly sensitive to Property and Sales Tax Revenues 60 50 « 40 o = 30 5 20 10 0 -Sales Tax Property Tax ^^ # CN^^ J> Fiscal Year are 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 followed national trends and have reversed declines seen in previous years. This is expected to have a mildly positive effect on property tax revenues in FY 2013-14, as this revenue source increases by slightly approximately 1.5 percent to $48.4 million. The increase in property tax is due, in part to improving assessed valuations and modest increases in inventory form new construction. Home prices increased by 13 percent compared to the previous year, and the median value is now at $655,000. Increasing residential home prices will improve assessed values and should begin to overcome the temporary property tax reductions provided to homeowner by the San Diego County Tax Assessor over the past years. As mentioned previously, 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 2013-14 are based on assessed values as of January 1 2013. 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. Sales Tax by Category Business to Fourth Quarter 2012 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 $31.1 million for FY 2013-14, an increase of 4 percent compared to the FY 2012-13 projections. New automobile sales, which comprise approximately 25 percent of Carlsbad's sales tax revenue. B-2 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit i is expected to remain healthy in the coming year, as data from MuniServices indicates statewide growth of 8 to 10 percent in 2013. Revenues from auto sales are approaching pre- recession levels of slightly over $6 million. Auto sales in Carlsbad increased by almost 18 percent in calendar year 2012, which actually trailed the statewide increase of almost 19 percent. General retail sales tax, which comprises approximately 40 percent of sales tax, continues to grow, but at a decreasing rate. The city continues to see additions to the sales tax base, including the opening of the LegoLand Hotel and Palomar Commons, which will provide increased sales tax revenue from retail building materials, a market sector that has been underserved in Carlsbad. Several years ago, the State of California implemented the "Triple Flip." The "Triple Flip" is essentially a temporary swap of a cent of the cities' sales taxes in return for property tax. It was done in order to give the state a revenue source against which they could issue deficit reduction bonds. The city's sales tax estimates continue to show this amount as sales tax, since the amount is reflective of what the city would receive. As can be seen in the chart on the previous page, the city's sales tax base is heavily weighted in the transportation (predominantly new car sales) and retail sectors. These two sectors make up approximately 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 $900,000 in Proposition 172 funds, which are earmarked for public safety service expenditures. Proposition 172 requires that the Vi cent increase in California 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 $14.7 million for FY 2013-14, an increase of 5.8 percent compared to FY 2012-13 estimates. Growth in the TOT base (existing hotels) is expected to increase by 3 percent in FY 2013-14, driven primarily by forecast increases in the average daily rate paid for rooms. The addition of the LegoLand Hotel is also included in the FY 2013-14 revenue projection and will add 250 additional rooms. TOT revenues in FY 2013- 14 are expected to break the previous high mark of $14.3 million, seen in FY 2007-08. As seen in the graph above, TOT dropped as low as $11.4 million during the recession, although the sector has revived in the past few years. 2005 2008 2011 Fiscal Year 2014e 6 5 4 Million^ 2 1 0 Franchise Taxes llfli 2005 2008 2011 Fiscal Year 2014e I Other Franchise iSDG&E FrancTisse One of the more volatile General Fund revenues is the Franchise Tax. Franchise taxes are paid by certain industries that use the city right-of-way to conduct their business. The city currently has franchise agreements for cable TV service, solid waste services, cell sites, fiber optic antenna systems and gas and electric services. The cable and solid waste franchises have been growing along with the 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit i 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 percent, with all segments sharing in the increase. 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 othenA^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, although revenues from this source are expected to increase slightly in FY 2013-14. 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. Development related revenues fell from $4.4 million in FY 2010-11 to $2.7 million in FY 2011-12 and are expected to finish the current year fiscal year lower. In FY 2011-12, there were 423 units permitted for residential housing. For FY 2012-13, 259 residential units are projected to be issued for residential housing, and, in FY 2013-14, 118 units are projected. For FY 2-13-14, development related revenues are expected to increase by approximately $600,000, due primarily to increased projections for industrial and commercial development. However, this source of revenue is not expected to remain relatively stable over the coming years, as growth tapers off. Business license taxes are closely tied to the health of the local economy, and are projected to increase by 5.7 percent to an estimated $3.7 million in FY 2013-14. There are currently about 9,051 licensed businesses in Carisbad, with just over 2,583 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 2013-14 totals $15.7 million, a $100,000, or 0.6 percent, increase 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 peri'ormed 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 city. Carisbad expects to receive approximately $1.1 million in transfer taxes for FY 2013-14, which is essentially unchanged from FY 2012-13. Although housing prices have increased, very low inventories indicate a lack of sales activity. Increasing home prices may have an effect on inventories, however, and could rapidly change this source of revenue. 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 million in interest on its General Fund investments for Fiscal Year 2013-14, as the yield on the city's portfolio has fallen to 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit i approximately one percent and is not expected to substantially improve in the coming fiscal year. General Fund Revenues $ jVlilllons 140 120 100 80 60 40 20 0 + 16.3% -1.9% -3.6% -3.2% 1.2% 1.7% 1-0% 3.2% • •i •I FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY FY 2013e 2014e Overall, as reflected in the bar chart, General Fund revenues are expected to be up 3.2 percent from FY 2012-13, property tax, sales tax, and TOT continue to improve. Although the city experienced revenue growth between 9 and 17 percent in the late 1990's, it was not sustainable. 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. An improving economic is certainly driving General Fund revenues higher, but revenue growth should remain in the 3 to 4 percent range in the coming years. 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 2011-12, the unassigned General Fund balance was approximately $61.4 million. At the end of FY 2012-13, the reserve is projected to be approximately $63.4 million, or 55 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 $10.7 million in FY 2013-14, a $3.7 million, or 25.7 percent, decrease from FY 2012-13. The types of programs supported within Special Revenue funds are those funded by specific revenue streams such as: • Grants (Rental Assistance-Section 8 and Community Development Block Grants) • Special fees and assessments (Affordable Housing and Maintenance Assessment Districts) • Donations (Library, Cultural Arts, Recreation and Senior Donations) B-5 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 SPECIAL REVENUE FUNDS 2013-14 PROJECTED REVENUES Donations and All Others Grants / 4% 4% IVIaintenance. Districts Rental Assistance 52% CDBG 8% Affordable Housing 5% 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 $953,000, $589,000 and $334,000, respectively, from FY 2012- 13. During FY 2012-13, the city received approximately $1.1 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 2012-13, the city received approximately $587,000 from San Diego Gas & Electric (SDG&E) as part of their street lighting efficiency program. This was the last reimbursement to be received from SDG&E for this program as the city has completed their street light retrofit project, whereby the city's high-pressure sodium vapor lights were replaced with induction lights. The Federal government has modified their cash management policy for funding housing assistance payments for their Section 8 Rental Assistance Program, which is reflected in the reduced estimated revenues for the Rental Assistance Program in FY 2013-14. Enterprise fund revenues for FY 2013-14 are projected at $69 million, an increase of $2.3 million, or 3.5 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. Carisbad Enterprise funds include water and recycled water delivery, wastewater services, solid waste management, and operation of a golf course. The Water Enterprise Fund revenue is estimated at $46.1 million, an increase of $2.2 million, or 5.0 percent over the current year estimate. These revenues reflect $2.1 million in increased sales revenue due to a proposed rate increase of 6.0 percent effective January 1, 2014 to pay for the rising cost of water purchases. The proposed rate increases have not yet been B-6 '1 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 approved by the Board of Directors of the Carisbad Municipal Water District. Further, a cost of service study is currently being performed to ensure the District's costs are being equitably allocated amongst the various customer classes. The results of the cost of service study may alter the currently proposed rate increases. As such, staff will return to the Board to consider the results of the cost of service study and request a Public Hearing to consider the proposed rate increases. Anticipated increases paid to the San Diego County Water Authority include an estimated 6.0 percent increase to the wholesale purchase cost of water (from $1,063 to $1,127 per acre foot, effective January 1, 2014), and an estimated 5.5 percent increase in the fixed charges for water purchases (from $5.5 million to $5.8 million) for FY 2013-14. In addition to paying for the wholesale and fixed water costs, the FY 2013-14 Operating Budget includes funding for replacement of Carisbad's water infrastructure, ongoing meter replacements, and building sufficient operating reserves. Estimated revenues for Wastewater are $12 million; $100,000 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. The proposed rate increase for January 1, 2014 is 2 percent and has not yet been approved by the City Council. As such, staff will return to Council and request a Public Hearing to consider the proposed rate increase. Estimated revenues for the Golf Course are $7.5 million, with no change from the prior fiscal year. Internal Service funds show estimated revenues of $17 million for FY 2013-14, a decrease of about $450,000, or 2.6 percent, from FY 2012-13 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 2013-14 revenues is a $700,000 transfer from the General Fund to be set aside to assist in the stabilization of future CalPERS retirement costs; in FY 2012-13, the set aside amount was $1.8 million, resulting in a decrease in revenues for FY 2013-14 of about $1 million when compared to the prior year. The Redevelopment Obligation Retirement Fund (RORF) revenues are expected to total $1.3 million in the upcoming year, an increase of $1.2 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 Carisbad Redevelopment Agency (RDA) and satisfy the financial obligations. The first Recognized Obligation Payment Schedule (ROPS) was prepared by the Successor Agency in April 2012 which was ultimately 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 would be paid from semi-annual tax increment revenue received by the Successor Agency. Every six months a new ROPS has been 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 only receives tax increment revenues and interest earnings on any cash balances. B-7 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit i During FY 2012-13, the former RDA completed two separate Agreed Upon Procedures (AUP) required by the state; one for the former Low and Moderate Income Housing Funds and one for the Non-Low and Moderate Income Housing Funds associated with the city's former RDA. Upon completion of each of these AUPs, the city was obligated to return funds deemed "excess" by the AUPs. These adjustments were netted against any tax increment revenues received during the year, thereby creating artificially low tax revenues for the fiscal year. Tax increment revenues are projected to increase in FY 2013-14 as the city has completed their AUPs and all "excess" funds have been returned to the state. B-8 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit i EXPENDITURES The city's Preliminary Operating Budget for FY 2013-14 totals $211.1 million, which represents an increase of about $900,000, or 0.9 percent, as compared to the adopted FY 2012-13 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 and 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 2013-14 Preliminary Operating Budget, as well as in the long-term financial forecast. The FY 2013-14 Preliminary Operating Budget also sets aside $700,000 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 2013-14 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 modest growth in maintenance and operations, if needed, 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. • 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. For FY 2013-14, departments were allowed a 2 percent increase, if needed, for their expenditures for maintenance and operations (M&O). As a result of the economic recession, block budgets were reduced in both FY 2008-09 and FY 2009-10 in order to align expenses with falling revenues. In order to gain further operating efficiencies, the city's organizational structure was realigned in FY 2010-11. Since the beginning of'the recession, the city has eliminated 50 full-time equivalent (FTE) positions in order to contain costs. In the FY 2013-14 budget, additional efficiencies were identified in some departments and additional full-time positions were eliminated. No additional appropriations are expected during the fiscal year, except in the case of significant unanticipated events. 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 2012-13, the amounts carried fon/vard by each department will be capped at no more than 10 percent ofthe previous year's Adopted Budget. B-9 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit i Budgeted Expenditures Through the application of these guidelines and policies, the FY 2013-14 Preliminary Operating Budget of $211.1 million was developed. Position Changes A net decrease of 6.75 full-time positions is reflected in the FY 2013-14 Preliminary Operating Budget, as compared to the FY 2012-13 Adopted Budget. These position decreases were identified through expenditure reduction efforts and resulted in approximately $560,000 in net personnel savings citywide for the coming year. These eliminations are partially offset by the addition of staff to operate Alga Norte Park, the addition of an Office Fellow program in the City Manager's Office and the effects ofthe staff reorganization completed in FY 2012-13. The FY 2013-14 Preliminary Operating Budget includes the elimination of the following 12.0 full- time positions: 2.0 Associate Engineer 1.0 Deputy City Manager 1.0 Meter Services Worker II 2.0 Office Specialist II 1.0 Park Maintenance Worker II 1.0 Park Planning Manager 1.0 Recreation Area Manager 1.0 Planning Technician 1.0 Senior Office Specialist 1.0 Utilities Director The FY 2013-14 Preliminary Operating Budget includes the addition of the following full-time and limited term positions: 1.0 Administrative Services Director 1.0 Office Fellow-Limited Term 2.0 Recreation Supervisors (Alga Norte Park) 1.0 Senior Engineer 0.25 Office Specialist II The net increase in houriy staff totals 18.0 FTE. This increase is due to the addition of 17.0 houriy staff for the new Alga Norte Park and the addition of 0.50 houriy staff each in City Attorney's Office and Records. These changes result in a city workforce of 667.75 full and three-quarter time employees, and 150.58 houriy, 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 opening of Alga Norte Park is expected to occur in FY 2013-14, and additional funds for operating the park have been incorporated in the FY 2013-14 Preliminary Operating Budget in the Parks and Recreation Department, and in the Property and Environmental Management Department. Additional staffing has also been added to operate and maintain the park, as mentioned in the position changes noted above. B-10 11 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 Budget bv Fund Type The table below shows the changes in the Preliminary Operating Budget for FY 2013-14, as compared to the Adopted Budget for FY 2012-13. BUDGET EXPENDITURE SUMMARY BY FUND TYPE (In Millions) FUND BUDGET 2012-13 BUDGET 2013-14 $ CHANGE % CHANGE GENERAL FUND SPECIAL REVENUE ENTERPRISE INTERNAL SERVICE REDEV. OBLIG. RETIREMENT $ 115.1 10.9 64.7 18.1 1.4 $ 115.8 10.7 66.1 17.2 1.3 $ 0.7 (0.2) 1.4 (0.9) (0.1) 0.6% -1.8% 2.2% -5.0% -7.1% TOTAL $ 210.2 $ 211.1 $ 0.9 0.4% 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 Carisbad. 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 2012-13 BUDGET 2013-14 $ CHANGE % CHANGE PERSONNEL MAINTENANCE & OPERATIONS CAPITAL OUTLAY TRANSFERS $ 73.3 30.7 0.1 11.0 $ 73.9 31.5 10.4 $ 0.6 0.8 (0.1) (0.6) 0.9% 2.6% -100.0% -5.5% TOTAL $ 115.1 $ 115.8 $ 0.7 0.6% General Fund The total Preliminary Operating Budget for the General Fund for FY 2013-14 is $115.8 million, which is less than one percent greater than the previous year's Adopted Budget of $115.1 million. The total increase is attributable to a $800,000, or 2.6 percent, net increase in Maintenance and Operations costs, $600,000, or 0.9% increase in Personnel, and a $600,000, or 5.5 percent, overall decrease 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 2013-14 is $73.9 million, which is $400,000, or 0.6 percent, more than the previous year's total personnel budget of $73.5 million. B-11 I? 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 GENERAL FUND PERSONNEL COSTS (In Millions) BUDGET BUDGET $ % 2012-13 2013-14 CHANGE CHANGE SALARIES $ 51.1 $ 51.7 $ 0.6 1.2% RETIREMENT 13.1 12.9 (0.2) -1.5% HEALTH INSURANCE 6.7 6.8 0.1 1.5% WORKERS COMP 1.4 1.4 0.0 0.0% OTHER PERSONNEL 1.2 1.0 (0.2) -16.7% TOTAL $ 73.5 $ 73.8 $ 0.3 0.4% The table above shows the breakdown of personnel costs for the General Fund. Overall, total personnel costs are projected at $73.9 million, an increase of about $400,000, or 0.6 percent, for FY 2013-14 as compared to FY 2012-13. Salaries include full and part-time staff costs and are expected to increase in FY 2013-14 by $600,000, or 1.2 percent. The increase is mainly due to previously negotiated wage increases scheduled to occur in FY 2013-14, as well as the addition of staff to operate and maintain Alga Norte Park. Total wage and staffing increases were somewhat offset by the elimination of 6.75 full-time positions citywide. Retirement rates, as projected by CalPERS, will increase in FY 2013-14 by about 1 percent of payroll for General and Management employees, representing a 4.2 percent increase, and by about 0.7 percent of salary for Safety employees, representing a 2.2 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 in pension contribution decrease of $150,000, or 1.2 percent for FY 2013-14. In addition to the retirement costs noted here, an additional $700,000 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 3 percent in FY 2013-14, while Worker's Compensation expense is projected to remain flat 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 for the coming year. Miscellaneous other personnel costs, such as bi-lingual pay, are projected to decrease slightly for FY 2013-14. 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 $31.5 million, an increase of about $800,000, or 2.6 percent, for FY 2013-14 as compared to FY 2012-13. Maintenance and Operations costs are discussed more fully by program later in the report. Capital Outlay includes budgeted equipment purchases over $1,000. There are no major capital outlay purchases in the General Fund for FY 2013-14. B-12 /9 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 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: • $7.8 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 2012-13. . $253,000 to the Storm Water Program for reimbursement for the General Fund portion of Storm Water expenses. • $545,000 to the Median Maintenance and Street Tree Maintenance Special Revenue Funds to cover cash shortfalls, as annual assessments collected from property owners do not cover annual operating expenditures. • $989,549 to the city's municipal golf course for debt service. • $700,000 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 2013-14 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 2013-14 Preliminary Operating Budget, are noted below the chart. GENERAL FUND EXPENDITURES BY DEPARTMENT (in Millions) BUDGET BUDGET $ % DEPARTMENT 2012-13 2013-14 CHANGE CHANGE POLICY/LEADERSHIP $ 4.3 $ 4.0 $ (0.3) -7.0% COMMUNITY & ECONOMIC DEV 7.1 6.8 (0.3) -4.2% FINANCE 3.5 3.6 0.1 2.9% FIRE 17.5 17.5 0.0 0.0% HOUSING & NEIGHBORHOOD SRVCS 0.6 0.6 0.0 0.0% HUMAN RESOURCES 2.3 2.4 0.1 4.4% LIBRARY & ARTS 10.3 10.4 0.1 1.0% PARKS AND RECREATION 12.7 13.2 0.5 3.9% POLICE 27.9 28.7 0.8 2.9% PROPERTY & ENVIRONMENTAL MGT 5.1 5.6 0.5 9.8% RECORDS MANAGEMENTS 0.8 0.8 0.0 0.0% STORM DRAIN ENGINEERING 0.3 0.3 0.0 0.0% TRANSPORTATION 8.8 8.7 (0.1) -1.1% NON-DEPARTMENTAL 13.9 13.2 (0.7) -5.0% TOTAL $ 115.1 $ 115.8 $ 0.7 0.6% B-13 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 • 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 $300,000, or 0.3 percent, net decrease for FY 2013-14 is primarily due to the elimination of the Deputy City Manager position, as well as reductions in one-time capital outlay purchases and M&O costs. • The Community and Economic Development Department includes economic development, planning, development services, building inspection, and land use engineering. The decrease of about $300,000, or 4.2 percent, is mainly due to the elimination of three FTE. The department eliminated one full-time Associate Engineer, one full-time Office Specialist, and one full-time Senior Office Specialist. • 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 increases in internal services, as well as an increase in bank service charges. • The Carisbad Fire Department provides emergency operations, emergency preparedness, and fire prevention services to safeguard lives, property and the environment in the City of Carisbad. The FY 2013-14 operating budget is flat when compared to the FY 2012-13 budget. • 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 2012-13 to FY 2013-14. • The Human Resources Department supports the city with staffing and recruitment, employee development, peri'ormance management, and compensation and labor relations services. An increase in contractual services related to investigations and fact- finding account for the increase of $100,000, as compared to the FY 2012-13 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 increase by $100,000, or 1 percent, from FY 2012- 13 to FY 2012-13. • 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 increasing by $500,000, or 3.9 percent, from the prior year, largely due to the net change from the elimination of 3 full-time positions, and the increase of 2 FTE positions and 17 houriy positions to operate Alga Norte Park, expected to open to the public during FY 2013-14. • The Carisbad Police Department provides high quality public safety services to the community by enforcing laws and ordinances, preserving the peace, and providing for B-14 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 the protection of life and property. Overall, the department's costs are increasing by $800,000, or 2.9 percent, for FY 2013-14 as compared to FY 2012-13. Approximately $230,000 of the increase is due to internal service charges. Also, in FY 2013-14, a $120,000 increase is for computer maintenance, and $50,000 is for miscellaneous services, primarily for the animal control contract. Approximately $240,000 of the increase is in overall personnel costs, with the remaining increases in supplies, training, and general operations costs. 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 $500,000, or 9.8 percent, increase from the prior year's budget is primarily due to adding $200,000 for facility maintenance costs associated with the opening of Alga Norte Park, including the addition of a 0.50 houriy FTE position, and $150,000 for the Safety Training Center, a new facility which opened in FY 2012-13. The remaining increase is primarily in items not included in the block budget, such as miscellaneous facility projects. The Utilities Department in the General Fund consists of Storm Drain Engineering activities. No significant change is expected for FY 2013-14 as compared to the FY 2012-13 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 2012-13 to FY 2013-14. 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 decrease by $700,000, or 5 percent, in FY 2013-14. The decrease is due to a reduction in the transfer to the city's Self Insured Benefits Fund. 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 2013-14, the Contingency is budgeted $1.5 million, with no change when compared to the prior year. $ Millions 120 115 110 105 100 i (3.3°, +0.3% • +3.0% • 0.4% FY 2007- FY 2008- FY 2009- FY 2010- FY 2011- FY 2012- FY 2013- 08 09r 10 11 12 13 14 $116.5m $112.7m $109.1m $109.4m $111.8m $115.2m $115.7m B-15 History of General Fund Budgeted Expenditures As reflected in the chart to the left, the city's expenditures were reduced significantly with the City Council's revised budget in FY 2008-09, reflecting a 3.3 n y; 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit i percent decrease from the FY 2007-08 Adopted Budget. A further 3.2 percent reduction was made in FY 2009-10 in order to reduce expenditures in line with continued General Fund revenue declines. 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 were expected to increase by $3.3 million, or 3 percent. In FY 2013-14 expenditures are budgeted to increase $600,000, or 0.6 percent. Ctianges in Ottier Funds Special Revenue funds, at $10.7 million, are down $200,000, or 1.8 percent, from the prior year. While there are several Special Revenue funds with fluctuations from year to year, the most significant decrease is in funding for rental assistance. Enterprise funds total $66.1 million, which is an increase of $1.4 million, or 2.2 percent, over the FY 2012-13 Adopted Budget. The most significant change in Water Operations is due to the estimated increase in the cost of water purchased from the San Diego County Water Authority (5.5 percent increase in fixed costs and a 6 percent increase in variable costs due to an estimated increase from $1,063 to $1,127 per acre foot effective January 1, 2014. Carisbad customers decreased water consumption for several years; however, in FY 2012-13 the quantities purchased began to increase. The quantities purchased are expected to follow the same trajectory in FY 2013-14 as in FY 2012-13. The Operating Budget also includes funding for depreciation replacement transfers related to growth and aging of the water infrastructure system. Wastewater operations are projected to decrease 1.3 percent, or $100,000, over the Adopted Budget for FY 2012-13. This decrease in the operating budget is primarily due to a reduction in personnel related costs and Encina services costs. Golf Course operations are expected to remain relatively flat for FY 2013-14. The Golf Course budget was previously done on a calendar year basis; beginning July 1, 2013 the budget and financial reporting will occur on a fiscal year basis. The Internal Service funds total $17.2 million, a decrease of $900,000, or 5 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 General Liability budget shows an increase of approximately $100,000, or 7.2 percent, based on higher claims projected for the fund, as compared to the prior fiscal years. • The Self Insured Benefits budget shows a decrease of approximately $2.7 million, due to the timing of and reduction in transfers for retirement set aside. . The Vehicle Replacement budget remains relatively flat when compared to FY 2012- 13. A list of the requested replacement vehicles can be found at the end of this document. • The Information Technology budget shows an increase in the department's budget of approximately $1.5 million, or 24 percent, from the prior fiscal year. About $1.1 million of this increase is due to replacement of equipment, and the remaining $400,000 is for planned increases in maintenance and support of new software and hardware. B-16 ^3 2013-14 PRELIMINARY OPERATING BUDGET OVERVIEW Exhibit 1 The budgets for the Redevelopment Obligation Retirement Funds (RORF) budgets have decreased by $100,000 or 7.1 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 Carisbad Redevelopment Agency (RDA) and satisfy the financial obligations. The FY 2013-14 Preliminary Operating Budget reflects two Recognized Obligation Payment Schedules (ROPS) that will be prepared by the Successor Agency (one has already been submitted for approval and one will be completed during FY 2013-14), but which must ultimately be approved by the Oversight Board, the County of San Diego and the State of California. The ROPS identifies 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 and annual debt service requirements. 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. During FY 2012-13, the city was notified that several items were not approved in their ROPS (including parking lot leases in the downtown area), creating a reduction in the FY 2013-14 expenditure budget. SUMMARY This Preliminary Operating Budget for FY 2013-14 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 2013-14 to ensure the budget reflects the ongoing financial obligations of the city. The Carisbad economy is continuing to improve, as a strong economic base is aided by the addition of hotel, retail and commercial projects. Major revenue sources are improving in the city, with continued gains seen in property tax, sales tax, and hotel tax revenues. Carisbad still faces economic challenges from a fluctuating economy, 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 Carisbad 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. B-17 CITY OF CARLSBAD OPERATING FUNDS PROJECTED FUND BALANCES Exhibit 2 UNRESERVED BALANCE JULY 1,2012 PROJECTED REVENUES PROJECTED EXPENDITURES ADVANCES &FUND TRANSFERS OTHER CHANGES PROJECTED BALANCE JUNE 30, 2013 GENERAL FUND REPAYMENT FROM SOUD 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 COMMUNIW ACTIVITY GRANTS COMMUNITY DEVELOPMENT BLOCK GRANT CULTURAL ARTS DONATIONS UBRARY AND ARTS ENDOWMENT FUND LIBRARY GIFTS/BEQUESTS LIGHTING AND LANDSCAPING DISTRICT NO 2 LOCAL CABLE INFRASTRUCTURE FUND MEDIAN MAINTENANCE PARKING IN LIEU POLICE ASSET FORFEITURE POUCE GRANTS RECREATION DONATIONS RENTAL ASSISTANCE - SECTION 8 SENIOR DONATIONS STREET UGHTING STREET TREE MAINTENANCE TOTAL SPECIAL REVENUE $61,383,660 * $117,298,000 $114,943,920 (118,565) $63,737,740 0 0 0 (118,565) 0 61,383,660 117,298.000 114.943.920 63.619.175 19,064,963 2,160,700 546.503 20.679.160 1,366,597 122,000 260.000 1,228.597 70,673 149,900 110.388 110.185 1,076,763 5.000 55.060 1.026.703 220,777 1.193,000 1,580.191 (166,414) 156,243 37,900 66.820 127,323 259,357 1.000 6,014 254,343 140,451 127.000 116,(X)0 151,451 1,446.402 523,400 240,000 1,729,802 668,716 371,000 219,512 820,204 156,833 736,000 860,0(X) 32.833 400,179 0 9,407 390,772 614,376 96,000 207,678 502,698 (171,343) 729,600 0 558,257 214,442 36,600 14.000 237,042 597.835 5,885.300 6.208.262 274,873 203,057 133,900 25.000 311,957 635,068 1,471,300 993.320 1,113,048 45,085 611,1(X) 650,{XX) 6,185 27,166,474 14.390.700 12.168,155 29,389.019 ENTERPRISE WATER OPERATIONS RECYCLED WATER OPERATIONS WASTEWATER OPERATIONS SOLID WASTE MANAGEMENT GOLF COURSE TOTAL ENTERPRISE INTERNAL SERVICE WORKERS' COMPENSATION RISK MANAGEMENT SELF-INSURED BENEFITS VEHICLE MAINTENANCE VEHICLE REPLACEMENT INFORMATION TECHNOLOGY TOTAL INTERNAL SERVICE REDEVELOPMENT OBUGATION iSTREMENT FUNDS VILLAGE RDA OBUGATION RETIREMENT FUND TOTAL REDEVELOPMENT OBLIGATION RETIREMENT FUNDJ (7.763) 5.068.834 146.937 9.592.343 493.577 15.293.928 1.487,800 294,870 2,534,114 321,891 15,070.668 4,668.072 24.377.415 7,596,408 36,258.500 7,670,650 11,895.257 3,423,565 7.500,000 66.747.972 1,553.783 1.876.654 2,653,955 2,739.346 1.894.228 6.699.807 17.417.773 53.006 53.006 34.552.154 7.383.139 10,772.025 3.093.321 7.491.575 63.292,214 1,871,991 1.837.240 3.998.780 2.233.779 1,556,418 5,609,756 17.107.964 7.223.526 7.223.526 1.698.583 5.356.345 1.270,169 9,922,587 502,002 18,749,686 1,169,592 334,284 1,189,289 827,458 15,408,478 5,758,123 24,687,224 TOTAL OPERATING FUNDS $135,817,885 $215,907,451 $214,735,779 ($118,565) $0 $136,870,992 • FOR THE GENERAL FUND ONLY THIS REPRESENTS UNASSIGNED FUND BALANCE CITY OF CARLSBAD OPERATING FUNDS . PROJECTED FUND BALANCES PROJECTED BALANCE ESTMATED JULY 1. 2013 REVENUES ADOPTED BUDGET ADVANCES &FUND TRANSFERS OTHER CHANGES PROJECTED BALANCE JUNE 30. 2014 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 ISPECIAL 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 PARKING IN UEU POLICE ASSET FORFEITURE POUCE GRANTS RECREATION DONATIONS RENTAL ASSISTANCE - SECTION 6 SENIOR DONATIONS STREET LKSHTING STREET TREE MAINTENANCE TOTAL SPECIAL REVENUE $63,619,175 * $121,003,185 $115,813,115 $68,809,245 0 0 0 0 0 63.619.175 121,0)3.185 115,813,115 68.809.245 20.879,160 595.0ffl) 511,067 20.763.093 1,228,597 121,000 105,925 1.243.672 110.185 110,4(H) 125,035 95.550 1,026,703 10,000 10,000 1,026,703 (166,414) 913,000 563,190 183,396 127,323 40,500 68,400 99,423 254,343 2,000 4,000 252,343 151.451 120,000 63,367 208.084 1,729,802 542,153 246,439 2.025,516 820,204 371,000 356,738 834.466 32,833 713,734 741,370 5.197 390,772 0 42,000 348.772 502,698 54,500 251,761 305,437 558,257 8,100 0 566,357 237,042 23,700 51.969 208,773 274,873 5,551,700 5.990.386 (163,813) 311,957 30.0X3 35.100 306.857 1,113,048 882.402 882.971 1.112,479 6,185 652.283 649.668 8.800 29,389.019 10.741,472 10.699,386 29.431.105 ENTERPRISE WATER OPERATIONS RECYCLED WATER OPERATIONS WASTEWATER OPERATIONS SOLID WASTE MANAGEMENT GOLF COURSE TOTAL ENTERPRISE INTERNAL SERVICE WORKERS' COMPENSATION RISK MANAGEMENT SELF-INSURED BENEFITS VEHICLE MAINTENANCE VEHKILE REPLACEMENT INFORMATION TECHNOLOGY TOTAL INTERNAL SERVTCE jREDEVELOPMEMT OBUGATTON RETIREMENT FUNDS | VILLAGE RDA OBLIGATKJN RETIREMENT FUND TOTAL REDEVELOPMENT OBLK>ATION RETIREMENT FUNDS 1.698.583 5,356.345 1.270.169 9,922.587 502.002 18,749.686 1.169.592 334,284 1,189,289 827,458 15,408,478 5,758,123 24,687,224 425.688 425.888 38.117.000 7,945.650 11.972.119 3,442,145 7,517,749 68,994,663 1.568.120 2.451,490 1.597,019 2,810.684 1.505,824 7,033.392 16,966.529 1j!91.400 1,291.400 36.277.284 7.557.479 11,189,569 3.595.771 7.498.961 66.119.064 1.774.781 1,701,927 1,521,397 2,874,734 1,287,565 8,068,407 17^48,811 1.291.415 1.291.415 ITOTAL OPERATING FUNDS 3.538.299 5,744.516 2.052.719 9,768.961 520.790 21.625.285 962,931 1.083,847 1.264.911 763,408 15,626,737 4,703,108 24.404,942 $136,870,992 $218.997.249 $211,171,791 $144,696,450 | • FOR THE GENERAL FUND ONLY THIS REPRESENTS UNDESIGNATED, UNRESERVED FUND BALANCE CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOURCE [GENERAL FUND TAXES PROPERTY TAX SALES TAX TRANSIENT TAX FRANCHISE TAX BUSINESS UCENSE TAX TRANSFER TAX TOTAL TAXES INTERGOVERNMENTAL VEHICLE LICENSE FEES HOMEOWNERS EXEMPTION OTHER INTERGOVERNMENTAL TOTAL INTERGOVERNMENTAL UCENSES AND PERMITS BUILDING PERMITS OTHER LICENSES & PERMITS TOTAL UCENSES & PERMITS CHARGES FOR SERVICES PLANNING FEES BUILDING DEPT. FEES ENGINEERING FEES AMBULANCE FEES RECREATION FEES OTHER CHARGES OR FEES TOTAL CHARGES FOR SERVICES FINES AND FORFEITURES INCOME FROM INVESTMENTS AND PROPERTY* INTERDEPARTMENTAL CHARGES OTHER REVENUE SOURCES TOTAL GENERAL FUND ACTUAL REVENUE 2011-12 $48,181,123 28,733,198 12,872,425 4,851,742 3,668,441 924,807 99,231,736 52,838 368,465 644,130 1,065,433 878,316 973,545 324,097 695,988 758,760 2,689,979 1,534,000 483,459 6,486,283 $115,822,690 PROJECTED REVENUE 2012-13 $47,703,000 29,910,000 13,857,000 4,908,000 3,536,000 1,086,000 101,000,000 55,000 370.000 500,000 925,000 577,000 640,000 213,000 457,000 499,000 2.763,000 1.582.000 594.000 6,108,000 858,000 3,727,000 855,000 ESTIMATED REVENUE 2013-14 $48,409,000 31,107,000 14,710,000 5,002,000 3,677,000 1,097,000 104,002,000 0 372,000 627,000 751.000 833,000 1,584,000 277,000 595,000 649,000 2,500,000 2,114,378 508,500 6,643,878 813,500 2,158,824 3,946,983 AS% OF FY 12-13 PROJECTED 1.5% 4.0% 6.2% 1.9% 4.0% 1.0% 3.0% -100.0% 0.5% 25.4% 1.0% 30.2% 30.2% 30.1% 30.2% 30.1% -9.5% 33.7% -14.4% DIFFERENCE 2012-13 TO 2013-14 $706,000 1,197,000 853,000 94,000 141,000 11,000 3,002,000 (55,000) 2,000 127,000 74,000 174,000 193,000 64,000 138,000 150,000 (263,000) 532,378 (85,500) 535,878 (44.500) (449,176) $3,705,185 • INTEREST IS CALCULATED ON AN AMORTIZED COST BASIS B-lO CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOURCE ACTUAL REVENUE 2011-12 PROJECTED REVENUE 2012-13 ESTMi«ATED REVENUE 2013-14 AS% FY 12-13 PROJECTED DIFFERENCE 2012-13 TO 2013-14 SPECIAL REVENUE FUNDS AFFORDABLE HOUSING AFFORDABLE HOUSING FEES FEDERAL GRANT STATE GRANT INTEREST OTHER TOTAL AFFORDABLE HOUSING BLENA VISTA CHANNEL MAINTENANCE BUENA VISTA FEES INTEREST TOTAL BLENA VISTA CHANNEL MAINTENANCE CITIZEN'S OPTKJN FOR PUBLIC SAFETY STATE FUNDING (AB3229) INTEREST TOTAL Cm^NS OPTION FOR PUBLIC SAFETY COHWXLH^ITY ACTIVmr GRANTS INTEREST TOTAL COMMUNITY ACTIVITY GRANTS COMMLBMITY DEVELOPMENT BLOCK GRANT FEDERAL GRANT INTEREST OTHER TOTAL COMMUNITY DEVELOPMENT BLOCK GRANT CULTL«AL ARTS DONATIONS DONATIONS INTEREST OThER TOTAL CULTURAL ARTS DONATKWS UBRARY AND ARTS EhCICWMENT Fl»0 INTEREST TOTAL UBRARY AI«) ARTS ENDOWMENT FUND LIBRARY GIFTSffiEQUESTS GIFTS«EQl«STS INTEREST OTHER TOTAL UK?ARY GIFTS/BEQUESTS UGHTMSK3 AND LAIOSCAPING DISTRICT NO. #2 ______ WJTEREST OT>«R TOTAL UGHTING AND LANDSCAPING DIST. NO. #2 LOCAL CABLE INFRASTRUCTURE FUND CABLE FEES HifTEREST TOTAL LOCAL CABLE INFRASTRUCTURE FUND MEDIAN MAINTENANCE MEDIAN MAINTENANCE FEES BMTEREST OTHER TOTAL MEDIAN MAINTENANCE PARKING IN LIEU IN UEU FEES INTEREST TOTAL PARKING IN LIEU P0LK:E ASSET FORFEITURE ASSET FORFEITl«ES INTEREST OTHER TOTAL POLICE ASSET FORFEITURE POUCE GRANTS FEDERAL GRANT INTEREST TOT/y. POUCE GRANTS $1,727,445 42,341 204.589 10,602,272 12,576,647 157,331 16.324 171,312 695 22.480 3.852 26.332 50.534 1.671 8.516 a).721 128.682 2.125 0 130.807 438.526 15.853 0 454.379 368.282 6,899 375,181 355.974 89 359.500 715.563 49,734 7.520 (74) ST,\ao 532,380 45 $1,116,400 809.300 0 200.000 35.000 2,160,700 100,000 22,000 149.900 967,600 400 225,000 1,193,000 37,000 300 600 37,900 1,0(X) 1,000 126,000 1,000 0 127.000 489.600 28.400 5.400 523.400 365.000 6.000 94.500 1,500 0 96.000 729.600 0 $163,000 100.000 0 122.000 2^o.ooo 595.000 100.000 2t.OOO 110.400 10.000 913.000 0 33,000 7,500 40,500 2,000 120,000 0 0 120,000 524,852 17.301 0 542.153 364,000 7,000 371,000 358,734 0 355,000 50,000 4.500 0 54.500 8,100 0 -85.4% -87.6% 0.0% -39.0% 500.0% -72.5% 0.0% -4.6% -26.4% 0.0% -5.6% -100.0% -100.0% -23.5% -10.8% -100.0% 1150.0% 6.9% -4.8% -100.0% 0.0% -5.5% 7.2% -39.1% -100.0% 3.6% -0.3% 16.7% 0.2% 0.0%' -6.1% 0.0% 0.0% -47.1% 200.0% 0.0% -43.2% -98.9% 0.0% ($953,400) (709.300) 0 (78.000) 175.000 (1.565.701^ 0 (1.000) (39.500) 0 (39.500) 5.000 (54.600) (400) (225.000) (280.000) (4.000) (300) 6.900 2.600 (6.000) (1.000) 0 (7.000) 35.252 (11.099) (5.400) 18.753 (1.000) 1.000 (23.000) P2,266) (44.500) 3.000 0 (41.500) (721.500) 0_ (721,500) J2 Cmr OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOURCE ISPEOAL REVENUE FUNDS - COWnNtgp" RECREATION DONATTONS DONATK}NS & GRANTS INTEREST TOTAL RECREATION DONATIONS RENTAL ASSISTANCE FEDERAL GRANT INTEREST OTHER TOTAL RENTAL ASSISTANCE SEMOR DONATIONS DONATIONS INTEREST OTHER TOTAL SENIOR DONATIONS STREET LIGHTING GOVERNMENT GRANTS AND LOANs"^ STREET UGHTING FEES INTERDEPARTKENTAL OTHER INTEREST TOTAL STREET LIGHTING STREET TREE MAINTENANCE TREE MAINTENANCE FEES INTEREST OTHER TOTAL STREET TREE MAINTENANCE TOTAL SPECIAL REVENUE FUNDS ACTUAL REVENUE 2011-12 25.722 2.359 6.028,802 6,856 20,215 6,055.873 8,302 2,378 14,533 204.563 728.558 PRO.ECTED REVENUE 2012-13 463,855 278 113,500 35,600 1.000 5,855.800 5.100 24.300 120.000 500 13.400 133.900 587.100 730.6(H) 141.400 12.200 461.500 149.600 611.100 $14.390.700 ESTIMATED REVENUE 2013-14 23.700 0 23.700 5,S45,«)0 6,700 8,000 2,000 20,000 30.000 0 728,772 0 141.400 12.230 882.402 6g.283 AS% OF FY 12-13 PROJECTED ^3.4% -100.0% -5.3% 31.4% -100.0% -93.3% 300.0% 49.3% -100.0% -0.3% 0.0% 00% 0.3% DIFFERENCE 2012-13 TO 2013-14 -40.0% 0.2% 0.0% 27.0% (11.900) (1.000) (12.90(^ (310.900) 1.600 P4.300) (333.600) (112,000) 1.500 6.600 (103.900) (587,100) (1,828) 0 0 30 (588,898) 783 0 40,400 ($3,649,228) CITY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOl«CE ACTUAL PROJECTED ESTIMATED AS% DIFFEFENCE FJEVENUE REVENUE REVENUE OF FY 12-13 2012-13 TO 2011-12 2012-13 2013-14 PROJECTED 2013-14 $21,442,931 $23,900,000 $25,200,000 5.4% $1,300.00) 8.026,609 8.700.000 9,150.000 5.2% 450.000 2,722,560 2.665,00) 2.855.000 7.1% 190.000 129.695 135.000 120.000 -11.1% (15.000) 123.086 125.000 125.000 0.0% 0 301,394 316,500 280.000 -11.5% (36.500) 16,895 177.500 1,000 -99.4% (176,500) 88,337 80.00) 80,000 0.0% 0 122,242 100.000 100.000 0.0% 0 0 0 0 0.0% 0 248,537 59.500 206.000 246.2% 146.500 33,222586 36.258.500 38.117.000 5.1% 1.858,500 5,094,428 5.760.000 6.000.000 4.2% 240,000 580,879 625.000 650.000 4.0% 25,000 1,137,150 1.050.000 1.100.000 4.8% 50.000 70,363 70.000 50.000 -28.6% (20.000) 121,366 165.650 145.650 -12.1% (20,000) 7.004,186 7.670.550 7,945,650 3.6% 275,00) 10,905,656 11.500.000 11.530.000 0.3% 30,000 31,339 32,000 23.000 -28.1% (9,000) 173,091 175,000 180.000 2.9% 5,000 52,174 85,000 80.000 -5.9% (5,000) 78,345 72.119 89.119 23.6% 17.000 94,491 31.138 70.000 124.8% 38.862 11,335,096 11.895.257 11.972.119 0.7% 76.862 119,781 125.000 113.145 -9.5% (11.855) 275,596 275.000 277.000 0.7% 2,000 53,739 57.000 57.000 0.0% 0 2,631,421 2.700.000 2.700.000 0.0% 0 269.414 266.566 295.000 10.7% 28,435 3.349.951 3.423.565 3.442.145 0.5% 18,580 92.292 90.000 90.000 0.0% 0 6.127,068 6.423.160 6.429.200 0.1% 6.040 1,644.592 986.840 998.549 1.2% 11.709 7.863.952 7.500.000 7.517.749 0.2% 17.749 $62,775,471 $66,747,972 $68,994,663 3.4% $2,246,691 lENTERPRISE FUNDS WATER OPERATTONS WATER SALES READY TO SERVE CHARGES PROPERTY TAXES hEW ACCOUNT CHARGES BACK-FLOW PROGRAM FEES PENALTY FEES INTEREST ENGIfEERING OVERHEAD SERVTCE CONNECTKIN FEES AGRKU-TURAL CREDITS OTHER TOTAL WATER OPERATIONS RECYCLED WATER OPERATK)NS WATER SALES READY-TO-SBWE CHARGE RECYCLED WATER CREDITS INTEREST OTHER TOTAL RECYCLED WATER OPERATIONS WASTEWATER OPERATIONS SERVTCE CHARGES MISC SEWER E^«3I^EERING OVERHEAD PENALTY FEES INTEREST OTHER TOTAL WASTEWATER OPERATIONS SCX.ID WASTE MANAGEMENT B*TEREST RECYCLH4G FEES (AB939) PENALTY FEES TRASH Sl*iCHARGE OTTER TOTAL SOLID WASTE MANAGEMENT GOLF COURSE OPERATKWS INTEREST CHARGES FOR SERVTCES OTHER TOTAL GOLF COURSE OPERATIONS TOTAL ENTERPRISE FUNDS 50 CtTY OF CARLSBAD OPERATING FUNDS REVENUE ESTIMATES REVENUE SOL«CE INTERNAL SERVICE FUNDS WORKERS'COMPENSATKm »frEra3EPARTMENTAL INTEREST OTFER TOTAL WORKERS' COSW'ENSATTON RISKMANAGE^NT INTERDEPARTKENTAL INTEREST OTHER TOTAL RISK MANAGEMENT SELF-INSURED BEhEFITS INTERDEPART*«NTAL INTEREST OTICR TOTAL SELF-INSURED BENEFITS VEHK:LE MAINTENANCE INTERDEPARnyCNTAL INTEREST OTHER TOTAL VEHCLE MAINTENANCE VEHCLE REPLACEMENT INTERDEPARTWCNTAL INTEREST OTHER TOTAL VEHICLE REPLACEMENT INFORMATION TECHNOLOGY FEDERAL GRANT INTERDEPARTWENTAL INTEREST OT>«R TOTAL IHFOravlATION TECI*KH.OGY TOTAL INTERNAL SERVICE FUNDS ACTUAL REVENUE 2011-12 $1,457^30 74.471 286.347 1,609.110 3,094 28.733 1.640.937 PROJECTED REVENUE a)12-13 $1,501,120 27.461 25.202 1.553.783 1.858.560 1.900 16.194 813.828 2.515.825 2,422 21,000 2.539^47 1,917.674 175.551 3.387 2.096.612 0 6.682.808 54,783 16.482 6.754.073 771.303 0 1.882.652 2.739.346 1.820,012 74,216 1,694,228 6.656.904 24.063 18,840 ESTIMATED REVErAE 2013-14 $1,501,120 67.000 1.505.824 0 6.983.592 49,800 0 7.033.392 AS% OF FY 12-13 PROJECTED 0.0% 144.0% -100.0% 5.0% -10)0% 2987.6% 5.9% 0.0% -58.6% 2.7% 0.0% -16.6% -17-3% -100.0% 0.0% 0.0% 4.9% 107.0% -100.0% 5.0% DIFFERENCE 2012-13 TO 2013-14 $0 39.539 (25.202) 14.337 92.930 (1.900) 483.806 45.786 0 (1.102.722) (1.056.936) (3.176) (314.188) (74.216) (368.404) 3».688 25.737 (18.840) 333.585 ($451.244) IREDEVELOPMENT OBUGATTON RETIREMENT FUNDS VILLAGE RDA OBUGATTON RETIREMENT FUND RENTAL INCOME TAXWCREMENT INTEREST OTTER TOTAL VILLAGE OPERATIONS / DEBT SERVICE TOTAL REDEVELOPMENT FUNDS $8,764 2.607.668 45.041 2.822 $0 53.006 2.664.295 $0 1591.400 1591.400 0.0% 0.0% -100.0% 0.0% 2336.3% $0 1591.400 (53.006) 1.238.394 ITOTAL OPERATING FUfffiS $221,493.118 31 DEPARTMENT CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE Exhibit 4 2010-11 ACTUAL* 2011-12 ACTUALS 2012-13 ESTIMATED EXPENDITURES 2012-13 BUDGET 2013-14 BUDGET %INCR (DEC) 12- 13 BUD TO 13- 14 BUD GENERAL FUND POUCY AND LEADERSHIP GROUP COMMUNITY SERVICES UBRARY AND ARTS PARKS AND RECREATION TOTAL COMMUNITY SERVICES PUBUC SAFETY FIRE POUCE TOTAL PUBLIC SAFETY PUBLIC WORKS CITY COUNCIL CITY ATTORNEY CITY CLERK CITY MANAGER CITY TREASURER COMMUNICATIONS TOTAL POLICY AND LEADERSHIP GROUP ADMINISTRATIVE SERVICES FINANCE HUMAN RESOURCES RECORDS MANAGEMENT TOTAL ADMINISTRATIVE SERVICES COMMUNITY DEVELOPMENT COMMUNITY AND ECONOMIC DEVELOPMENT HOUSING mo NEIGHBORHOOD SERVICES TOTAL COMMUNITY DEVELOPMENT $352,145 1.327,414 176,655 1.348.850 181,262 793.887 4,180,213 3,472,814 2,320,758 775.002 6,568.574 7,309,222 400,062 7,709,284 PROPERTY AND ENVIROMENTAL MANAGEMENT TRANSPORTATION STORM DRAIN ENGINEERING TOTAL PUBLIC WORKS 10.528,095 11,867,576 22.395.671 16,121,182 27.670.820 43,792,002 4,660,673 8,312,277 260,580 13,233.530 $337,599 1.289.939 124.036 1,442.294 183.730 638.541 4.016,139 3,395.659 2.285.191 687.969 6.368.819 7,035,103 499.230 7.534.333 10.418.253 12.160.698 22,578.951 17.034.490 27.506.352 44.540,842 4,707.149 8.327,015 237,203 13,271.367 340.274 1.276.912 108,267 1,635,927 190,684 664.634 4,216.698 3,778,015 2.176.829 649.510 6,604.354 6.145,795 606.166 6,751.961 10.413,256 13.086.425 23.4^.681 18,048.059 27.636,105 45,684.164 4,619,441 10,268.151 304.109 15,191,701 $352,729 1.336.908 141.563 1.504.476 194,812 725,987 4,256,475 3,511,305 2.275.507 792.303 6.579.115 7.061.612 576.991 7.638,603 10.308,502 12,718,661 23,027.163 17.540.315 27.937.848 45.478,163 5.135,939 8.840,761 281.483 14.258,183 $364,856 1,316.806 63.347 1,388.651 207,514 697.185 4.038,359 3.591.465 2.399.628 802.226 6.793,319 6,842,728 561,583 7,404,311 10.394.004 13,198.247 23.592.251 17.502.702 28.703.400 46,206,102 5.566.546 8,696.580 279.098 14.542.224 3.4% -1.5% -55.3% -7.7% 6.5% -4.0% -5.1% 2.3% 5.5% 1.3% 3.3% -3.1% -2.7% -3.1% 0.8% 3.8% 2.5% -0.2% 2.7% 1.6% 8.4% -1.6% -0.8% 2.0% 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 CPTYS REORGANIZATION IMPLEMENTATION. B-25 CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE DEPARTMENT 2010-11 ACTUAL* 2011-12 ACTUALS 2012-^13 ESTIMATED EXPENDITURES 2012-13 BUDGET 2013-14 BUDGET %INCR (DEC) 12- 13 BUD TO 13- 14 BUD GENERAL FUND - CONTINUED MISCELLANEOUS NON-DEPARTMENTAL EXPENDITURES COMMUNITY CONTRIBUTIONS 51.612 187.316 133.517 0 0 - DUES & SUBSCRIPTIONS 62.931 54.481 51.493 55,550 60.000 8.0% LEGAL SERVICES 58.605 60.656 lO.OCK) 80.000 80.(XX) 0.0% PROFESSIONAL SERVICES 132.079 166.892 500.000 316.100 475.000 50.3% OTHER MISCELLANEOUS EXPENDITURES 48.039 367.818 500,0(X) 0 0 - PERSONNEL RELATED 26.340 57.904 120.000 140.000 175.000 25.0% PROPERTY TAX & OTHER ADMINISTRATION 724.334 735.656 650,000 BOO,(m 650.000 -18.8% TOTAL EXPENDITURES 1.103.940 1,630.723 1,965,010 1,391,650 1.440.000 3.5% TRANSFERS INFRASTRUCTURE REPLACEMENT FUND 7.175.000 7,382.000 7,547,000 7,547.(X)0 7,800.0(X) 3.4% TRANSFERS TO SELF INSURED BEN.-PERS SETASIDE 0 1,400.(X)0 1,8(X).000 1.800.000 700.000 -61.1% TRANSFERS TO GOLF COURSE: DEBT SERVICE 0 1.644.592 409,605 945.0(X) 998.549 5.7% TRANSFER TO LLD#1 (MEDIANS & TREES) 253.850 473.000 527.746 527,746 545.000 3.3% TRANSFER TO STORM WATER PROGRAM 134.790 165.497 246.(X)0 210,000 253.000 20.5% OTHER MISCELLANEOUS TR/WSFERS 1.350,(X)0 1,629.806 500,000 0 0 - TOTAL TRANSFERS 8,913,640 12,694,895 11,030.351 11,029.746 10.296,549 -6.6% TOTAL MISCELLANEOUS NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND TOTAL MISCELLANEOUS NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND 10,017,580 14.325,618 12,995,361 12.421,396 11,736.549 -5.5% TOTAL MISCELLANEOUS NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND 107,896.854 112,636.069 114,943,920 113.659.098 114.313.115 0.6% TOTAL MISCELLANEOUS NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND 0 0 0 1.500,000 1.500.000 0.0% TOTAL MISCELLANEOUS NON-DEPARTMENTAL SUBTOTAL GENERAL FUND CONTINGENCIES TOTAL GENERAL FUND $107,896,854 $112,636,069 $114,943,920 $115,159,098 $115,813,115 0.6% B-2<P 33 CITY OF CARLSBAD OPERATING FUNDS BUDGET EXPENDITURE SCHEDULE DEPARTMENT 2010-11 ACTUAL* 2011-12 ACTUALS 2012-13 ESTIMATED EXPENDITURES 2012-13 BUDGET 2013-14 BUDGET %INCR (DEC) 12- 13 BUD TO 13- 14 BUD 0 0 0 0 0 SPECIAL REVENUE FUNDS 0 0 0 0 AFFORDABLE HOUSING $422,790 $668,816 $546,503 $573,244 $511,067 -10.8% BUENA VISTA CHANNEL MAINTENANCE 84.852 111,753 260,000 133,230 105,925 -20.5% CITIZEN'S OPTION FOR PUBLIC SAFETY 90.447 99.569 110.388 110,388 125.035 13.3% COMMUNITY ACTIVITY GRANTS 0 1.680 55.060 28,000 10,000 -64.3% COMMUNITY DEVELOPMENT BLOCK GRANT 584,813 1,287,064 1.580.191 540.570 563,190 4.2% CULTURAL ARTS DONATIONS 88.949 66.854 66.820 62.500 68,400 9.4% LIBRARY AND ARTS ENDOWMENT FUND 6.605 4.195 6.014 4.000 4.000 0.0% LIBRARY GIFTSmEQUESTS 118.516 117.952 116.000 65.620 63.367 -3.4% LIGHTING AND LANDSCAPING DISTRICT NO. 2 192.045 214.544 240.000 236,256 246.439 4.3% LOCAL CABLE INFRASTRUCTURE FUND 271.414 209.422 219.512 362,535 356.738 -1.6% MEDIAN MAINTENANCE 715.442 759.636 860.000 735.758 741.370 0.8% PARKING IN UEU 0 0 9.407 0 42.000 - POLICE ASSET FORFEITURE 19.450 247.319 207.678 35.775 251,761 603.7% POUCE GRANTS 341.661 748.169 0 0 0 - PUBUC ART 187.672 0 0 0 0 - RECREATION DONATIONS 18.236 34.358 14.000 39.319 51.969 32.2% RENTAL ASSISTANCE 6,356,973 6.620.112 6.208.262 6.219.914 5,990.386 -3.7% SENIOR DONATIONS 30,973 16.924 25.000 37,990 35.100 -7.6% STREET LIGHTING 2,268.015 1,180,248 993.320 1.025.421 882.971 -13.9% STREET TREE MAINTENANCE 645,070 662.694 650.000 651.432 649,668 -0.3% TOTAL SPECIAL REVENUE FUNDS $12,443,923 $13,051,309 $12,168,155 $10,861,952 $10,699,386 -1.5% ENTERPRISE FUNDS WATER OPERATIONS $29,568,137 $30,796,638 $34,552,154 $34,654,191 $36,277,284 4.7% RECYCLED WATER OPERATIONS 6.721,454 7,332.485 7,383.139 7,682.227 7,557.479 -16% WASTEWATER OPERATIONS 9.502,110 10.374.682 10.772.025 11,336,015 11,189.569 -1.3% SOLID WASTE MANAGEMENT 2,544,050 2.941.131 3.093.321 3.503.924 3.595.771 2.6% GOLF COURSE OPERATIONS 7.554.766 7.528.195 7.491.575 7.491.475 7,498,961 0.1% TOTAL ENTERPRISE FUNDS $55,890,517 $58,973,131 $63,292,214 $64,667,832 $66,119,064 2.2% INTERNAL SERVICE FUNDS WORKERS' COMPENSATION $3,029,600 $2,236,534 $1,871,991 $1,655,668 $1,774,781 7.2% RISK MANAGEMENT 2.275.616 1,355,752 1,837.240 1,673,429 1,701.927 1.7% SELF-INSURED BENEFITS 983,628 892.560 3.9^.780 4.188.113 1.521.397 -63.7% VEHICLE MAINTENANCE 2,696,576 2,773.322 2.233.779 2.837.449 2.874.734 1.3% VEHICLE REPLACEMENT 599,765 1.4(M.396 1.556.418 1,274,500 1.287.565 1.0% INFORMATION TECHNOLOGY 6,458,357 6.298.298 5.609.756 6,519.859 8.088,407 24.1% TOTAL INTERNAL SERVICE FUNDS $16,043,542 $14,962,^2 $17,107,964 $18,149,018 $17,248,811 -5.0% $1,473,037 146,863 $7,223,526 $1,396,715 $1,291,415 -7.5% REDEVELOPMENT OBLIGATION RETIREMENT FUNDS $1,473,037 146,863 $7,223,526 $1,396,715 $1,291,415 -7.5% VILLAGE RDA OBLIGATION RETIREMENT FUND sec RDA OBUGATION RETIREMENT FUND TOTAL REDEVELOPMENT $2,068,690 210,908 $1,473,037 146,863 $7,223,526 $1,396,715 $1,291,415 -7.5% VILLAGE RDA OBLIGATION RETIREMENT FUND sec RDA OBUGATION RETIREMENT FUND TOTAL REDEVELOPMENT $2,279,698 $1,619,900 $7,223,526 $1,396,715 $1,291,415 -7.5% TOTAL OPERATING FUNDS $194,554,434 $201,243,271 $214,735,779 $210,234,615 $211,171,791 0.4% General Fund NonGF $115,813,115 95,358,676 $211,171,791 NOTE: Estimated expenditures may exceed Adopted Budget since they include prior year budget appropriations. * ACTUALS. ESTIMATED EXPENDPrURES AND BUDGET HAVE BEEN ADJUSTED TO REFLECT THE CfTYS REORGANIZATION IMPLEMENTATION. 3i Exiiibit 5 PERSONNEL ALLOCATIONS FINAL BUDGET 2011-12 FINAL BUDGET 2012-13 FINAL BUDGET 2013-14 2013-14 CHANGES CITY ATTORNEY 7.00 7.00 7.00 0.00 CITY COUNCIL 1.00 1.00 1.00 0.00 CITY MANAGER 7.00 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 50.00 47.00 44.00 (3.00) FINANCE AND RISK MANAGEMENT 30.50 30.50 31.50 1.00 FIRE 87.75 87.75 88.00 0.25 HOUSING AND NEIGHBORHOOD SERVICES 13.00 10.00 10.00 0.00 HUMAN RESOURCES & WORKERS COMP 9.00 9.00 9.00 0.00 INFORMATION TECHNOLOGY 22.50 22.50 22.50 0.00 LIBRARY & ARTS 51.25 51.25 51.25 0.00 PARKS AND RECREATION 70.95 68.40 67.60 (0.80) POLICE 162.00 161.00 161.00 0.00 PROPERTY AND ENVIRONMENTAL MANAGEMENT 39.60 40.55 40.60 0.05 RECORDS MANAGEMENT 6.25 6.00 5.00 (1.00) TRANSPORTATION 54.40 54.40 53.40 (1.00) UTILITIES 68.55 67.65 65.40 (2.25) FULL AND 3/4 TIME LABOR FORCE 684.25 674.50 667.75 (6.75) SUMMARY OF REQUESTED LABOR FORCE BY CATEGORY 2011-12 2012-13 Difference Full Time Personnel 3/4 Time Personnel in Full Time Count Limited Temn Personnel Unfunded Full Time Positions Hourly Full Time Equivalent Personnel 679.75 4.50 0.00 {3.00) 139.74 669.00 4.50 1.00 0.00 132.58 661.00 3.75 2.00 1.00 150.58 (8.00) (0.75) 1.00 1.00 18.00 TOTAL LABOR FORCE* 820.99 807.08 818.33 11.25 B-2« 35 FY 2013-14 NEW FEES EXHIBIT 6 SCHEDULE PRIMARY DEPT. CURRENT FEE DESCRIPTION FY 2013-14 PROPOSED FEE CHANGE REASON GENERAL POUCE 22507 (a) - Oversize Vehicle $ 50.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte-Drop In Per Adnnission-Youth Teen 17 & Under-Non Resident $ 3.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte-Drop In Per Admission-Adult-Non Resident S 6.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte-Drop In Per Admission-Adult-Resident $ 5.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte-Spectator/Observer Entry (Not charged for swim lesson parents/guardians) $ 2.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes -1 Month Individual - Non Resident - Peak Time $ 65.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes -1 Month Individual - Non Resident - Off Peak Time $ 55.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes -1 Month Individual -Resident - Peak Time $ 55.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes -1 Month Individual - Resident - Off Peak Time $ 45.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes -1 Month Family - Non Resident - Peak Time S 95.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes -1 Month Family - Non Resident - Off Peak Time $ 85.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes -1 Month Family - Resident - Peak Time $ 75.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes -1 Month Family - Resident - Off Peak Time S 65.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes - 4 Month Individual - Non Resident - Peak Time $ 130.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes - 4 Month Individual - Non Resident - Off Peak Time $ 120.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes - 4 Month Individual -Resident - Peak Time $ 120.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes - 4 Month Individual - Resident - Off Peak Time $ 110.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes - 4 Month Family - Non Resident - Peak Time $ 270.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes - 4 Month Family - Non Resident - Off Peak Time $ 250.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes - 4 Month Family - Resident - Peak Time S 250.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte - Aquatic Discount Passes - 4 Month Family - Resident - Off Peak Time $ 230.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte -10 Swim Punch Card 10 X per Admission Fee NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Peak Hours (per lane per hour) - Resident Non Profit $ 20.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Peak Hours (per lane per hour) - Non Resident Non Profit $ 22.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Peak Hours (per lane per hour) - Resident $ 23.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Peak Hours (per lane per hour) - Non Resident $ 26.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Off Peak Hours (per lane per hour) - Resident Non Profit $ 18.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Off Peak Hours (per lane per hour) - Non Resident Non Profit $ 20.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Off Peak Hours (per lane per hour) - Resident $ 22.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Off Peak Hours (per lane per hour) - Non Resident $ 24.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Super Off Peak Hours (per lane per hour) - Resident Non Profit $ 16.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Super Off Peak Hours (per lane per hour) - Non Resident Non Profit $ 18.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Super Off Peak Hours (per lane per hour) - Resident S 20.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental- Instructional and Competitive Pool Super Off Peak Hours (per lane per hour) - Non Resident $ 22.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Outside of Regular Operating Hours - minimum of 70% of pool - summer - Resident Non Profit $ 27.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Outside of Regular Operating Hours - minimum of 70% of pool - summer - Non Resident Non Profit $ 30.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Outside of Regular Operating Hours - minimum of 70% of pool - summer - Resident $ 27.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Outside of Regular Operating Hours - minimum of 70% of pool - summer - Non Resident $ 30.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Outside of Regular Operating Hours - minimum of 70% of pool - non summer - Resident Non Profit $ 32.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Outside of Regular Operating Hours - minimum of 70% of pool - non summer - Non Resident Non Profit $ 35.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Outside of Regular Operating Hours - minimum of 70% of pool - non summer - Resident $ 36.00 NEW FEE 3Lf FY 2013-14 NEW FEES EXHIBIT 6 SCHEDULE PRIMARY DEPT. CURRENT FEE DESCRIPTION FY 2013-14 PROPOSED FEE CHANGE REASON GENERAL PARKS & RECREATION Alga Norte Pool Rental - Outside of Regular Operating Hours - minimum of 70% of pool - non summer - Non Resident $ 40.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Peak Hours - Non Profit Resident $ 41.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Peak Hours - Non Profit Non Resident $ 45.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Peak Hours - Resident S 46.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Peak Hours - Non Resident $ 50.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Off Peak Hours - Non Profit Resident $ 36.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Off Peak Hours - Non Profit Non Resident $ 40.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Off Peak Hours - Resident $ 41.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Off Peak Hours - Non Resident $ 45.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Super Off Peak Hours - Non Profit Resident $ 32.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Super Off Peak Hours - Non Profit Non Resident $ 35.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Super Off Peak Hours - Resident $ 36.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Super Off Peak Hours - Non Resident $ 40.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Outside of regular operating hours - add on to other pool use - Non Profit Resident $ 52.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Outside of regular operating hours - add on to other pool use - Non Profit Non Resident $ 55.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Outside of regular operating hours - add on to other pool use - Resident $ 56.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Whole Therapeutic Pool Rental - Outside of regular operating hours - add on to other pool use - Non Resident $ 60.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Time System Setup, Operation and Takedown per hour $ 55.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - On Deck Team Storage - Per Month Per Square Foot $ 3.25 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Aquatics Staff Costs - City Provided Services (Per Supervisor/Manager - Per Hr.) $ 35.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Aquatics Staff Costs - City Provided Services (Per Guard/Instructor - Per Hr.) $ 25.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Pool Rental - Competitive Events - Per Day Per Event Additional Fee $250-$1000 NEW FEE GENERAL PARKS & RECREATION Alga Norte Classes & Programs - Group Learn To Swim Lessons Per Hour $ 14.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Classes & Programs - Group Lessons Per Class Fee Resident Discount $ (1.00) NEW FEE GENERAL PARKS & RECREATION Alga Norte Classes & Programs - Programs/Classes/Camps - (Masters, Diving, Synchro Swim, Etc.) Per Hour $6-$9 NEW FEE GENERAL PARKS & RECREATION Alga Norte Classes & Programs - Programs/Classes/Camps - (Masters, Diving, Synchro Swim, Etc.) Per Hour - Resident Discount $ (1.00) NEW FEE GENERAL PARKS & RECREATION Alga Norte Classes & Programs - Individualized Instruction - Basic Swimming Per Hour $ 70.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Classes & Programs - Individualized Instruction - Basic Swimming Per Hour - Resident Discount $ (10.00) NEW FEE GENERAL PARKS & RECREATION Alga Norte Classes & Programs - Individualized Instruction - Advanced Instruction/Coaching - Per Hour $ 80.00 NEW FEE GENERAL PARKS & RECREATION Alga Norte Classes & Programs - Individualized Instruction - Advanced Instruction/Coaching - Per Hour - Resident Discount $ (10.00) NEW FEE GENERAL PARKS & RECREATION Alga Norte Specialty Programs - Birthday Party Packages - Basic package includes admission for 10 kids plus parents, cake & drinks & staff member $200-$300 NEW FEE GENERAL PARKS & RECREATION Alga Norte Specialty Programs - Recreation Department/Aquatics Special Events - (ie. Friday Night Lites) not including admission $5-$20 NEW FEE GENERAL PEM Safety Training Center -1 Shooting Range - Half Day $312-$524 NEW FEE GENERAL PEM Safety Training Center -1 Shooting Range - Full Day $678-$l,102 NEW FEE GENERAL PEM Safety Training Center - 2 Shooting Ranges - Half Day $401-$645 NEW FEE GENERAL PEM Safety Training Center - 2 Shooting Ranges - Full Day $763-$l,239 NEW FEE GENERAL PEM Safety Training Center - Classroom - Half Day $ 296.00 NEW FEE GENERAL PEM Safety Training Center - Class Room - Full Day $ 528.00 NEW FEE GENERAL PEM Safety Training Center - Grinder - Half Day $ 236.00 NEW FEE GENERAL PEM Safety Training Center - Grinder - Full Day $ 418.00 NEW FEE GENERAL PEM Safety Training Center - Grinder/Residential Prop (No Fire Ops) - Half Day $ 327.00 NEW FEE GENERAL PEM Safety Training Center - Grinder/Residential Prop (No Fire Ops) - Full Day $ 599.00 NEW FEE GENERAL PEM Safety Training Center - Grinder/Commercial Prop (no Fire Ops) - Half Day $ 327.00 NEW FEE GENERAL PEM Safety Training Center - Grinder/Commercial Prop (no Fire Ops) - Full Day $ 599.00 NEW FEE GENERAL PEM Safety Training Center - Streetscape - Half Day $ 100.00 NEW FEE GENERAL PEM Safety Training Center - Streetscape - Full Day $ 145.00 NEW FEE DEV REL SVC CED Easement Document Processing and Recording (Minor) $ 115.00 NEW FEE DEV REL SVC CED Village Area Sidewalk Outdoor Dining and Curb Cafe $ 1,200.00 NEW FEE 31 FY 13-14 INCREASED FEES EXHIBIT 6 SCHEDULE PRIMARY DEPT. CURRENT FEE DESCRIPTION FY 2012-13 FEE FY 2013-14 PROPOSED FEE CHANGE GENERAL UTILITIES Backflow 3rd Notice $ 22.00 $ 23.00 GENERAL UTILITIES Special Pick-ups of Solid Waste - Delivery charge for roil-off boxes (per box) $ 52.80 $ 53.56 GENERAL UTILITIES Special Pickups of Solid Waste - Service charge for all classes of roll-off boxes (per collection + landfill disposal fees) $ 248.25 $ 252.40 GENERAL UTILITIES Trash Collection - Residential - per month - 64 or 96 Gallon Cart $ 19.90 $ 20.20 GENERAL UTILITIES Trash Collection - Residential - per month (35 gallon trash) $ 18.02 $ 18.27 GENERAL UTILITIES Trash Collection - Residential - per month (backyard service) $ 25.34 $ 25.71 GENERAL UTILITIES Trash Collection - Commercial per bin - five pick-ups per week (2-yard bin) $ 306.34 $ 310.84 GENERAL UTILITIES Trash Collection - Commercial per bin - five pick-ups per week (3-yard bin) $ 442.39 $ 448.94 GENERAL UTILITIES Trash Collection - Commercial per bin - five pick-ups per week (4-yard bin) $ 614.10 $ 623.12 GENERAL UTILITIES Trash Collection - Commercial per bin - five pick-ups per week (5-yard bin) $ 785.83 $ 797.33 GENERAL UTILITIES Trash Collection - Commercial per bin - four pick-ups per week (2-yard bin) $ 248.63 $ 252.28 GENERAL UTILITIES Trash Collection - Commercial per bin - four pick-ups per week (3-yard bin) $ 357.52 $ 362.81 GENERAL UTILITIES Trash Collection - Commercial per bin - four pick-ups per week (4-yard bin) $ 494.89 $ 502.15 GENERAL UTILITIES Trash Collection - Commercial per bin - four pick-ups per week (5-yard bin) $ 632.26 $ 641.51 GENERAL UTILITIES Trash Collection - Commercial per bin - one pick-up per week (2-yard bin) $ 75.71 $ 76.78 GENERAL UTILITIES Trash Collection - Commercial per bin - one pick-up per week (3-yard bin) $ 102.92 $ 104.40 GENERAL UTILITIES Trash Collection - Commercial per bin - one pick-up per week (4-yard bin) $ 137.26 $ 139.23 GENERAL UTILITIES Trash Collection - Commercial per bin - one pick-up per week (5-yard bin) $ 171.60 $ 174.07 GENERAL UTILITIES Trash Collection - Commercial per bin - six pick-ups per week (2-yard bin) $ 364.00 $ 369.36 GENERAL UTILITIES Trash Collection - Commercial per bin - six pick-ups per week (3-yard bin) $ 527.27 $ 535.09 GENERAL UTILITIES Trash Collection - Commercial per bin - six pick-ups per week (4-yard bin) $ 733.31 $ 744.09 GENERAL UTILITIES Trash Collection - Commercial per bin - six pick-ups per week (5-yard bin) $ 939.40 $ 953.15 GENERAL UTILITIES Trash Collection - Commercial per bin - three pick-ups per week (2-yard bin) $ 191.04 $ 193.83 GENERAL UTILITIES Trash Collection - Commercial per bin - three pick-ups per week (3-yard bin) $ 272.66 $ 276.68 GENERAL UTILITIES Trash Collection - Commercial per bin - three pick-ups per week (4-yard bin) $ 375.69 $ 381.19 GENERAL UTILITIES Trash Collection - Commercial per bin - three pick-ups per week (5-yard bin) $ 478.72 $ 485.70 GENERAL UTILITIES Trash Collection - Commercial per bin - two pick-ups per week (2-yard bin) $ 133.37 $ 135.30 GENERAL UTILITIES Trash Collection - Commercial per bin - two pick-ups per week (3-yard bin) $ 187.81 $ 190.56 GENERAL UTILITIES Trash Collection - Commercial per bin - two pick-ups per week (4-yard bin) $ 256.46 $ 260.19 GENERAL UTILITIES Trash Collection - Commercial per bin - two pick-ups per week (5-yard bin) $ 325.17 $ 329.90 GENERAL UTILITIES Trash Collection - Commercial per bin - one pick-up per week (split bin) $ 82.88 $ 84.00 GENERAL UTILITIES Trash Collection - Commercial per bin - two pick-ups per week (split bin) $ 151.36 $ 153.42 GENERAL UTILITIES Trash Collection - Commercial per bin - three pick-ups per week (split bin) $ 219.81 $ 222.82 GENERAL UTILITIES Trash Collection - Commercial per bin - four pick-ups per week (split bin) $ 288.28 $ 292.21 GENERAL UTILITIES Trash Collection - Commercial per bin - five pick-ups per week (split bin) $ 356.72 $ 361.60 GENERAL UTILITIES Trash Collection - Commercial per bin - six pick-ups per week (split bin) $ 425.20 $ 431.02 GENERAL UTILITIES Trash Collection - Commercial Recycling - one pick-up per week (3 yard bin) $ 74.01 $ 74.90 GENERAL UTILITIES Trash Collection - Commercial Recycling - two pick-ups per week (3 yard bin) $ 125.21 $ 126.70 GENERAL UTILITIES Trash Collection - Commercial Recycling - three pick-ups per week (3 yard bin) $ 176.39 $ 178.50 GENERAL UTILITIES Trash Collection - Commercial Recycling - four pick-ups per week (3 yard bin) $ 227.58 $ 230.30 GENERAL UTILITIES Trash Collection - Commercial Recycling - five pick-ups per week (3 yard bin) $ 271.64 $ 274.89 GENERAL UTILITIES Trash Collection - Commercial Recycling - six pick-ups per week (3 yard bin) $ 325.75 $ 329.65 GENERAL UTILITIES Trash Collection - Commercial Yard Waste - one pick-up per week (3 yard bin) $ 104.94 $ 106.43 GENERAL UTILITIES Trash Collection - Commercial Yard Waste - two pick-ups per week (3 yard bin) $ 185.74 $ 188.44 DEV REL SVC CED Fish & Game Fee - EIR - Set by Department of Fish and Game $ 2,969.00 $ 3,045.25 DEV REL SVC CED Fish & Game Fee - Negative Declaration - Set by Department of Fish and Game $ 2,151.50 $ 2,206.25 GENERAL UTILITIES Trash Collection - Commercial Can - One pick-up per week (up to four (4) 32 gal) $ 35.14 $ 35.60 GENERAL UTILITIES Trash Collection - Commercial Can - Two pick-ups per week (up to four (4) 32 gal) $ 70.30 $ 71.22 GENERAL UTILITIES Trash Collection - Commercial Can - Three pick-ups per week (up to four (4) 32 gal) $ 105.44 $ 106.82 GENERAL UTILITIES Trash Collection - Commercial Can Backyard Service - One pick-up per week (up to four (4) 32 gal) $ 50.27 $ 50.92 GENERAL UTILITIES Trash Collection - Commercial Can Backyard Service - Two pick-ups per week (up to four (4) 32 gal) $ 100.54 $ 101.82 GENERAL UTILITIES Trash Collection - Construction Bin Rate - One pick-up per week (3 yard bin) $ 231.87 $ 235.48 GENERAL UTILITIES Trash Collection - Construction Bin Rate - Two pick-ups per week (3 yard bin) $ 403.60 $ 409.95 GENERAL UTILITIES Trash Collection - Construction Bin Rate - Three pick-ups per week (3 yard bin) $ 575.33 $ 584.42 38 FY 13-14 INCREASED FEES EXHIBIT 6 SCHEDULE PRIMARY DEPT. CURRENT FEE DESCRIPTION FY 2012-13 FEE FY 2013-14 PROPOSED FEE CHANGE GENERAL UTILITIES Trash Collection - Construction Bin Rate - Four pick-ups per week (3 yard bin) $ 747.05 $ 758.88 GENERAL UTILITIES Trash Collection - Construction Bin Rate - Five pick-ups per week (3 yard bin) $ 918.78 $ 933.36 GENERAL UTILITIES Trash Collection - Commercial Yard Waste- one pick-up per week (96 gal cart) $ 19.61 $ 19.89 GENERAL UTILITIES Trash Collection - Commercial Recycling- one pick-up per week (96 gal cart) $ 16.84 $ 17.04 GENERAL UTILITIES Trash Collection - Commercial Recycling- two pick-ups per week (96 gal cart) $ 33.68 $ 34.08 GENERAL UTILITIES Trash Collection - Commercial Recycling- three pick-ups per week (96 gal cart) $ 50.52 $ 51.13 DEV REL SVC UTILITIES Waste Water Discharge Permit $ 31.96 $ 42.00 SCHEDULE 06 CED 100 Watts -13,700 Lumens $ 98.40 $ 100.20 SCHEDULE 06 CED 150 Watts - 20,600 Lumens $ 132.60 $ 135.30 SCHEDULE 06 CED 250 Watts - 34,200 Lumens $ 201.18 $ 205.50 SCHEDULE 06 CED 40 Watts - 5,500 Lumens $ 57.54 $ 58.08 SCHEDULE 06 CED 80 Watts - 9,600 Lumens $ 84.72 $ 86.16 39 FY 13-14 FEE REDUCTIONS EXHIBITS SCHEDULE PRIMARY DEPT. CURRENT FEE DESCRIPTION FY 2012-13 FEE FY 2013-14 PROPOSED FEE CHANGE GENERAL FINANCE Business Ucense - master list of active business licenses $ 42.00 $ 35.00 GENERAL FINANCE Returned Check Fee $ 36.38 $ 35.00 GENERAL FIRE Fire - Hydrant Water Flow Test $ 74.57 $ 55.00 GENERAL FIRE Inspection-Initial Occupancy Inspection-New Business $ 322.19 $ 245.00 GENERAL POUCE Police - Copy Investigation Tapes (+ cost of duplicating the tape) $ 62.36 $ 53.50 GENERAL POLICE Police - Photograph Copy (fee plus reproduction costs) $ 57.16 $ 27.46 GENERAL UTILITIES Water Meter - Construction Meter Relocation $ 27.00 $ 29.00 GENERAL UTILITIES Water Meter - Construction Meter Installation/Removal $ 118.22 $ 103.00 GENERAL UTILITIES Water Meter Deposit - Construction Meters $ 1,019.78 $ 877.00 GENERAL UTILITIES Water Service Fee - Accounts scheduled for termination for non-payment $ 15.42 $ 14.00 GENERAL UTILITIES Water Service Fee - After Hour Turn-on $ 175.00 $ 114.00 GENERAL UTILITIES Water Service Fee - Door Hanger (paper or electronic) $ 10.00 $ 1.35 GENERAL UTIUTIES Water Service Fee - Next Scheduled Day Service Turn on $ 34.19 $ 29.00 GENERAL UTILITIES Water Service Fee - Per New Account - Service Turn on $ 35.98 $ 34.00 GENERAL UTILITIES Water Service Fee - Same Day Turn-on (Not Scheduled for That Day) $ 100.00 $ 86.00 DEV REL SVC CED Neighborhood Improvement Agreements $ 458.08 $ 157.00 DEV REL SVC CED Village Area Noticing Fee (Minor) - plus postage $ 223.00 $ 217.00 DEV REL SVC CED Village Review Permit Noticing Fee (Major) - plus postage $ 413.00 $ 407.00 DEV REL SVC UTILITIES Water Meter Installation-1" $ 414.28 $ 317.00 DEV REL SVC UTILITIES Water Meter Installation -1-1/2" $ 645.58 $ 574.50 DEV REL SVC UTIUTIES Water Meter Installation -1-1/2" - Turbo $ 1,190.42 $ 961.20 DEV REL SVC UTILITIES Water Meter Installation - 2" $ 797.73 $ 771.60 DEV REL SVC UTILITIES Water Meter Installation - 2" - Turbo $ 1,426.86 $ 987.11 DEV REL SVC UTILITIES Water Meter Installation - 3/4" $ 374.19 $ 301.00 DEV REL SVC UTILITIES Water Meter Installation - 5/8" $ 340.27 $ 268.00 SCHEDULE 08 CED Cost of Improvements - $100,001 to $250,000 - Pius 2% over $100,000 $ 3,547.16 $ 3,513.00 SCHEDULE 08 CED Cost of Improvements - $250,001 to $500,000 - Plus 0.15% over $250,000 $ 4,356.78 $ 4,412.00 FY 2013-14 DELETED FEES EXHIBITS SCHEDULE PRIMARY DEPT. CURRENT FEE DESCRIPTION FY 2012-13 FEE FY 2013-14 PROPOSED FEE CHANGE GENERAL UTILITIES Group 1 - Residential - Mobile Home rate per unit, 90% of water used $ 2.99 DELETE GENERAL UTILITIES Group VI Large Volume Users - Bio-Hydration Research Lab Inc. Rate per hundred cubic feet, min $24.53 per month $ 2.03 DELETE GENERAL UTILITIES Group VI Large Volume Users - Culligan - Rate per hundred cubic feet, min $24.53 per month N/A DELETE GENERAL UTILITIES Group VI Large Volume Users- Beckman Micro Operations - Rate per hundred cubic feet, min $24.53 per month N/A DELETE DEV REL SVC VARIOUS Research and Design Time (By Written Request) - Per Hour - Minimum $25.00 based on hours to completion Actual Cost DELETE SCHEDULE 01 FIRE Automatic Sprinkler System - Tenant Improvement Inspection Fee - Qty 1 at $68 each $ 68 DELETE SCHEDULE 01 FIRE Other Fixed Fire Systems - Hood and Duct - Inspection Fee - Qty 1 at $68 each $ 68 DELETE SCHEDULE 01 FIRE Other Fixed Fire Systems - Special Chemical Agent - Inspection Fee - Qty 1 at $68 each $ 68 DELETE SCHEDULE 01 FIRE Other Fixed Fire Systems - Standpipe - Inspection Fee - Qty 2 at $67.50 each $ 135 DELETE HI 1 FY 2013-14 Preliminary Operating Budget 2 FY 2013-14 Budget Calendar •Council Meetings: –May 14 – CIP workshop –Set public hearing for June 11 –May 28 – Operating Budget Workshop –June 11 – Public hearing and adoption of Fiscal Year 2013-14 Operating and Capital Budgets •Other Public Meetings: –May 30 – Citizens Budget Workshop - Faraday, 6 p.m. 3 Citizens Budget Workshop •When: Thursday, May 30 •Where: City of Carlsbad Faraday Center 1635 Faraday Ave. Room 173B •Time: 6 p.m. For additional information City of Carlsbad Administrative Services Department 760-602-2430 www.carlsbadca.gov 4 FY 2013-14 Budget Overview •Fiscal Responsibility –Balanced budget –Long-term sustainability –Healthy reserves •Improving Outlook –Revenues increasing –Economy improving 5 FY 2013-14 Budget Overview (continued) •Careful planning, responsible management –Core services maintained throughout recession –Budgetary strategies adopted during recession –Continue to prioritize efficient operations –Focus on local economic growth and retention –City is able to move forward on community projects and new initiatives 6 City of Carlsbad FY 2013-14 Combined Budget General Fund 45% Special Revenue Funds 4% RORF 1% Enterprise Funds 26% Internal Service Funds 7%Capital Improvement Program 17% $255 million Operating Budget – 83% Capital – 17% 7 National & Global Outlook • Employment • Housing • Fed Policy • Fiscal policy • Abroad 8 U.S. GDP Growth Rate 9 State Perspective • Balanced Budget •Housing •Employment •Exports •Prop 30 10 11 Carlsbad’s Economic Profile •Home prices •Taxable sales •Tourism 12 Unemployment Rate 0 2 4 6 8 10 CA Carlsbad/ San Marcos SD County US 13 General Fund Revenues 13 $106.0 $108.0 $110.0 $112.0 $114.0 $116.0 $118.0 $120.0 $122.0 $124.0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13e 2013-14eMillions Fiscal Year Total General Fund Revenues 14 14 General Fund Revenues Fiscal Year 2013-14 Property* 40% Sales* 26% Hotel Tax* 12% Business License 3% All Others 15% Franchise 4% $121 million 15 Median SFR Home Prices 0 100 200 300 400 500 600 700 800 900 2005 2006 2007 2008 2009 2010 2011 2012 2013Thousands Fiscal Year 16 Assessed Values and Property Taxes 16 - 10.0 20.0 30.0 40.0 50.0 60.0 - 5.0 10.0 15.0 20.0 25.0 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013e FY 2014f M i l l i o n s B i l l i o n s AV Residential AV Com/Indust Property Taxes 17 17 18 Transient Occupancy Taxes $0 $2 $4 $6 $8 $10 $12 $14 $16 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e $ Millions Fiscal Year 19 19 FY 2013-14 Operating Revenues by Fund Type General 55% Special Revenue 5% Redevelopment Obligation Retirement 1% Enterprise 31% Internal Service 8% $219 million 20 20 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Proj. Exp. (2007)153,961 160,980 168,220 174,948 181,946 189,224 196,793 204,665 212,851 221,365 Proj. Rev. (2014)121,030 124,868 130,596 135,558 140,193 145,961 151,457 155,526 160,383 165,108 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 Dollars (In Thousands) Fiscal Years PROJECTED EXPENDITURES (2007 FORECAST) VS. PROJECTED REVENUES (2014 FORECAST) Proj. Exp. (2007) ($32,931) ($36,112) ($39,390) ($37,624) ($41,753) ($43,263) ($45,336) ($49,139) ($52,468) ($56,257) 21 2013-14 Proposed Operating Budget 22 City Council’s goals and priority projects and services 10 year forecast updated Budget policies set for new fiscal year Departments submit requests to Finance Budget reviewed; City Manager makes recommendations to City Council City Council adopts budget Operating Budget Process 23 FY 2013-14 Budget Policies •Provide a balanced budget •Plan for a balanced budget for future years •Support Council strategic goals •Maintain high quality service levels 24 FY 2013-14 Budget Policies (continued) •No increase in number of positions, unless for new facilities •Identify efficiencies and reductions if possible to offset known budget increases •Budget discretionary items at minimal levels 25 FY 2013-14 Full-Time Position Changes •Elimination of 6.75 full-time positions: –12 positions eliminated identified through efficiencies and expenditure reductions –4.25 full-time and 1.0 limited-term positions added –43.25 positions eliminated over past four years –Total 50 full-time positions eliminated •Hourly FTE’s 18 new full-time equivalents: –17 FTE for Alga Norte Park –1.0 FTE for Records (0.50) and City Attorney’s Office (0.50) 26 Additions (5.25): 1.0 Senior Engineer 2.0 Recreation Supervisors 1.0 Administrative Services Director 1.0 Office Fellow .25 Office Specialist II 26 Eliminations (12): 2.0 Associate Engineer 1.0 Deputy City Manager 1.0 Meter Services Worker II 2.0 Office Specialist II 1.0 Parks Maintenance Worker II 1.0 Park Planning Manager 1.0 Recreation Area Manager 2.0 Senior Office Specialist 1.0 Utilities Director FY 2013-14 6.75 Full-Time Position Eliminations 27 FY 2013-14 Full-Time Position Changes (continued) •Total citywide full-time position count: 674.50 FY 2012-13 total ( 6.75) Less: net position changes** 667.75 FY 2013-14 total **A total of 50 positions have been eliminated citywide since FY 2009-10. 28 City of Carlsbad History of Budgeted Full-Time Positions 635 645 655 665 675 685 695 705 715 725 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY14 695.75 717.25 717.75 716.25 699.00 684.25 674.50 667.75 29 FY 2013-14 Part-Time Position Changes •Addition of 18 hourly FTE positions: –17 FTE positions for Alga Norte Park –0.5 FTE for City Attorney’s Office –0.5 FTE for Records •Total Citywide Hourly FTE (full-time equivalent) position count: 132.58 FY 2012-13 total 18.00 Add: net position changes 150.58 FY 2013-14 total 30 30 FY 2013-14 Budget Overview •Total proposed citywide Operating Budget : $211.2 million •Increase of $937,000 (0.4 %) from FY 2012-13 Adopted Budget •Significant fund increases/decreases: •$650,000 – General Fund increase •$1.5 million – Enterprise Funds increase •($900,000) – Internal Service Funds decrease 31 FY 2013-14 Operating Budget Total Budget = $211.2 million In Millions General Fund, $115.8, (55%) Special Revenue Funds $10.7, (5%) Enterprise Funds $66.1, (31%) Internal Service Funds, $17.2 (8%) RORF, $1.3, (1%) 32 General Fund Budget Comparison $73.3 $73.9 $30.8 $31.5 $11.0 $10.4 $0 $20 $40 $60 $80 $100 $120 $140 FY 2012-13 FY 2013-14 Transfers M & O and Capital Outlay Personnel In Millions Total $115.1 32 Total $115.8 33 33 FY 2013-14 General Fund Policy/ Leadership $4.0 (4%)Administrative Services $6.8 (6%) Public Safety $46.2 (40%) Non- Departmental $13.2 (11%) Community Services $23.6 (20%) Community Development $7.4 (6%) Public Works $14.6 (13%) Total Budget = $115.8 million In Millions 34 34 FY 2013-14 General Fund Budget Recap Revenues $ 121.0 million Budget Requests $ 115.8 million Projected Remainder $ 5.2 million 35 35 General Fund Balance Estimated Balance at 7/01/13 $ 63.6 million Plus: FY 2013-14 Excess 5.2 million = 6/30/14 Estimated Balance $ 68.8 million *Excludes impact of Council Program Options 36 36 FY 2013-14 Special Revenue Funds Housing Programs $6.5(61%) Maintenance Districts $2.6 (25%) Block grant $0.6 (5%)Other $1.0 (9%) Total Budget = $10.7 million In Millions 37 37 Work Comp $1.8 (10%) Risk Mgmt $1.7 (10%) Self Insured Benefits $1.5 (9%) Vehicle Maint $2.9 (17%) Vehicle Repl $1.3(7%) Info Tech $8.1 (47%) FY 2013-14 Internal Service Funds Total Budget = $17.2 million In Millions 38 FY 2013-14 Internal Service Funds Expenditure highlights: •Fleet Replacement Equipment - $1.2 million –Includes 2 Mobile Intensive Care Units •I.T. Replacement Equipment- $1.9 million –VOIP/Voice Over phone system replacement 39 FY 2013-14 Enterprise Funds Potable Water $36.3 (55%) Golf Course $7.5 (11%) Recycled Water $7.6 (12%) Wastewater $11.2 (17%) Solid Waste and Storm Water $3.6 (5%) 39 Total Budget = $66.1 million In Millions 40 Water Purchase Cost Increases •Purchased potable water from San Diego County Water Authority –Wholesale water – 4% increase –Fixed charges – 5.5% increase 41 Utility Rates 41 •Cost of Service study currently underway •Staff will return later this year with recommendations 42 FY 2013-14 Key Areas of Focus 42 43 Background •January Council planning workshop •Vision of a “world class city” •Continue work on key areas •Increase emphasis on technology, innovation, training 44 Priorities and Resources •Focus on fulfilling the community vision •Emphasis on efficiency and value •Money saved supports enhanced services 44 45 •Ensuring future financial health 45 Ensuring Strong Financial Health 46 Sustainable Organization •Focus on quality and efficiency –Changing the way we do business –High quality at best cost –Best value services –Pay for performance 46 47 Technology Strategy •Updated city website •New class registration system •New library information system •Public safety technology 47 48 •Creating quality jobs in a new economy 48 Creating Quality Jobs in a New Economy 49 Quality Jobs in a New Economy •Business retention •Talent attraction •Education hub •Partnerships 49 50 •Land use in a changing community 50 Adapting to Changing Land Use Needs 51 Balancing Land Use Policies With a Changing Community •Envision Carlsbad –General Plan update •Land use –Zoning Ordinance update •Development standards 51 52 New Projects •Village revitalization •Palomar Commons/ Lowe’s •La Costa Town Square •Plaza Camino Real redevelopment 52 53 •Safe and efficient transportation 53 Safe and Efficient Transportation 54 Livable Streets •Streets are for moving “people” •Improves traffic flow •Enhances safety •Creates a sense of place 54 55 South Carlsbad Coastal Corridor •Visionary project •Working with State Parks •More places to walk, bike and enjoy the coast 56 Livable Streets •State Street roundabout •Chestnut crossing •Update policies and standards 56 57 Traffic Management •Residential Traffic Management Program •Traffic Signal Program 57 58 •Maintaining a safe community 58 Maintaining a Safe Community 59 Fire Department •Virtual desktop implementation •Department wide technology implementation plan •Purchasing new ambulance 60 Police Department •Collaboration, Innovation, Engagement –Improve on technology foundation –Strategic Plan –Training and succession planning –Social media 60 61 •Meeting changing parks and recreation needs 61 Meeting Future Parks and Recreation Needs 62 Changing Parks and Recreation Needs •Updating plans to meet future needs •Alga Norte Community Park 62 63 Additional Priorities •Desal pipeline construction •Neighborhood enhancement programs •Buena Vista Lagoon project •City real estate strategy •Agua Hedionda Creek dredging •And more! 63 64 Fee Update 65 Fee Descriptions •General city fees –Charged for the usage of city services and property •Development related service fees –Charged to recover the cost of staff time & materials spent on development related activities •Development impact fees –Charged to recover the cost that growth is anticipated to have on city infrastructure 65 66 66 Fee Escalators •Updated by change in West Urban Consumer Price Index (CPI) –General city fees –Development related service fees •Updated by change in Engineering News Record Index (ENR) –Development impact fees 67 Cost of Service •Cost of Service Study was completed this year. •A comparison of the cost to provide the service and the fee requires that a number of fees be reduced. 68 Fee Escalators INDEX ONE YEAR ASSOCIATED FEES West Urban CPI 2.20% General City and Development Related Service Fees Ambulance Inflation Factor 0.80% Ambulance Fees 69 Impact Fees to Remain Unchanged •Water Connection •Sewer Connection •Parks in Lieu •Public Facilities 70 Fee Escalators 71 Traffic 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 $221 to $225 72 Parks and Recreation Fees •Fees for Alga Norte are included in the Master Fee Schedule, but will be moved to the Community Services Guide in the next budget cycle •Resolution change will allow greater discretion for Parks and Recreation to manage program demand 73 Parks and Recreation Fees Drop in per admission fee $2 to $6 Admission Passes (1 month to 4 months – individual and family)$45 to $270 Pool Rentals – Per lane per hour $16 to $60 Timing System Set up, Operation and Takedown Per Hour $55 Aquatic Events – Per day per event additional fee $250 to $1,000 Classes & Programs – per class fee $5 to $80 Specialty Programs – Birthday Packages $200 to $300 74 Other Fee Changes •New Fee for Easement Document Processing and Recording - $115 •Increase in Street Light Energizing Fee •Increase in Trash Collection Fees •Deleting Fees that not used any more •Decrease in fees that exceed Cost of Service •Added fees that were adopted in current FY 75 Safety Training Center 1 Shooting Range - Half Day $ 312 - 524 1 Shooting Range - Full Day $ 678 - 1,102 2 Shooting Ranges - Half Day $ 401 - 645 2 Shooting Ranges - Full Day $ 763 - 1,239 Classroom - Half Day $ 296 Class Room - Full Day $ 528 Grinder - Half Day $ 236 Grinder - Full Day $ 418 Grinder/Residential Prop (No Fire Ops) - Half Day $ 327 Grinder/Residential Prop (No Fire Ops) - Full Day $ 599 Grinder/Commercial Prop (no Fire Ops) - Half Day $ 327 Grinder/Commercial Prop (no Fire Ops) - Full Day $ 599 Streetscape - Half Day $ 100 Streetscape - Full Day $ 145 76 FY 2013-14 PROGRAM OPTIONS 1. CalPERS Unfunded Liability 2.Village / Barrio Revitalization Funding –$1.4 million transfer from General Fund to GCC 77 QUESTIONS 78 Council Action Set Public Hearing for June 11, 2013 79 Open Space •Actively pursuing city acquisition opportunities –Review open space acquisitions on a quarterly basis –Partner with willing sellers –In preliminary discussions for a Prop. C committee property 80 Community Gardens Short term •Working with Carlsbad Community Garden Collaborative –Calavera Hills Community Park property –Will present options to City Council at July workshop Long term •Will consider broader approach based on needs assessment findings 81 ALLOCATION 35,000,000$ Joint First Responders Training Facility 13,650,000$ Admin Training Facility 100,000$ Alga Norte Park Phase I 11,792,796$ Alga Norte Park Phase II 4,535,398$ Open Space Acquisiton and Trails 4,686,806$ Arroyo Vista Trail Extension 235,000$ Total 35,000,000$ Prop C Allocation 82 82 Infrastructure 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 –FY 2013-14 – $7.8 million 83 Alga Norte Park Operations 83 Full Year Partial Year Operations & Maintenance: Personnel 598,853$ 497,048$ M&O 479,475 397,964 Facility Maintenance 199,820 166,517 Park Maintenance 245,787 204,822 Total 1,523,935$ 1,266,351$