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Home My WebLink About2023-04-04; City Council; ; City of Carlsbad Fiscal Year 2021-22 Annual Financial Audit ResultsCA Review CKM Meeting Date: April 4, 2023 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Roxanne Muhlmeister, Assistant Finance Director roxanne.muhlmeister@carlsbadca.gov, 442-339-2417 Subject: City of Carlsbad Fiscal Year 2021-22 Annual Financial Audit Results District: All Recommended Action Receive a report on the city’s fiscal year 2021-22 annual financial audit results. Executive Summary The City of Carlsbad is required by the State of California to be audited by a certified public accountant or public accountant, licensed by, and in good standing with, the California Board of Accountancy. The city’s annual financial audit resulted in an unmodified opinion, and found no material weaknesses in internal controls, nor any material instances of noncompliance. Discussion The Finance Department is responsible for the stewardship of the city’s assets and liabilities, helping to ensure information is provided in an effective and timely manner so that the best financial decisions can be made. An important component of this stewardship is the completion of the city’s annual financial audit by a certified public accountant firm. Results of the Fiscal Year 2021-22 Financial Audit In February 2022, city staff selected and issued a five-year contract to the CPA firm Lance, Soll & Lunghard, LLP to perform the city’s annual financial audit. The role of the external auditor is to express an opinion on the city’s financial statements on whether they are materially misstated or not. The external auditors follow Government Auditing Standards that have been created by the American Institute of Certified Public Accountants. The fiscal year 2021-22 audit began in May 2022 with the external auditors conducting interim fieldwork, and the audit concluded on March 13, 2023, when the auditors issued their opinion on the city’s financial statements. The city received an “unmodified” opinion, which means that it is the auditor’s judgment that the city’s financial statements and footnotes are fairly stated, without any material exceptions, and in compliance with the generally accepted accounting principles. April 4, 2023 Item #5 Page 1 of 195 The auditor did not identify any material weaknesses in internal controls nor any material instances of noncompliance. The Independent Auditor’s Report is part of the city’s Annual Comprehensive Financial Report (Exhibit 1). This annual report also includes further discussion and analysis of the city’s finances and basic financial statements. Transparency The city publishes quarterly financial status reports on the city’s website that highlight the city’s General Fund, Water Fund, Wastewater Fund and Golf Course Fund revenues and expenditures for the fiscal year. City staff also provide the public and City Council with quarterly economic and financial reports and presentations at City Council meetings throughout the fiscal year. Fiscal Analysis This is an informational item with no fiscal impact. Next Steps The city’s next financial audit, for fiscal year 2022-23, is scheduled to commence with Lance, Soll & Lunghard, LLP in May 2023. The audit is expected to conclude in late 2023 or early 2024. Environmental Evaluation This informational report does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 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. Exhibits 1. City of Carlsbad’s fiscal year 2021-22 Annual Comprehensive Financial Report April 4, 2023 Item #5 Page 2 of 195 (Cityof Carlsbad Cii l lfor n la FINANCIALREPORT Fiscal Year Ended June 30, 2022 ANNUAL COMPREHENSIVE April 4, 2023 Item #5 Page 3 of 195 {city of Carlsbad California Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2022 Prepared by the Finance Department 1635 Faraday Ave. Carlsbad, CA 92008 www.carlsbadca.gov April 4, 2023 Item #5 Page 4 of 195 {city of Carlsbad April 4, 2023 Item #5 Page 5 of 195 Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 Table of Contents Page Introductory Section Letter of Transmittal i Certificate of Achievement for Excellence in Financial Reporting xxi Location Map xxii List of City Officials xxiii Organization Chart xxiv Financial Section Independent Auditor’s Report 1 Management’s Discussion and Analysis 5 Government-Wide Financial Statements: Statement of Net Position 25 Statement of Activities 26 Fund Financial Statements: Balance Sheet – Governmental Funds 28 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 31 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 35 Statement of Net Position – Proprietary Funds 36 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 38 Statement of Cash Flows – Proprietary Funds 39 Statement of Fiduciary Net Position – Fiduciary Funds 40 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 41 Notes to the Financial Statements 43 Required Supplementary Information Budgetary Comparison Schedules General Fund 87 Pension Plan Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios Agent Multiple-Employer Miscellaneous Plan 88 Schedule of Contributions-Agent Multiple-Employer Miscellaneous Plan 90 Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios Agent Multiple-Employer Miscellaneous Plan 92 Schedule of Contributions-Agent Multiple-Employer Safety Plan 94 OPEB Plan Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios 96 Schedule of Contributions 97 April 4, 2023 Item #5 Page 6 of 195 {city of Carlsbad Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 Table of Contents Page Financial Section (continued) Combining and Individual Fund Statements and Schedules Combining Balance Sheet –Nonmajor Governmental Funds 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 102 Budgetary Comparison Schedules Affordable Housing 106 Community Development Block Grant 107 Donations 108 Financing Districts 109 Habitat and Agricultural Management 110 Other Special Revenue Funds 111 Police Grants and Asset Forfeiture 112 Section 8 Rental Assistance 113 Tyler Court Apartments 114 Combining Statement of Net Position – Nonmajor Proprietary Funds 115 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Proprietary Funds 116 Combining Statement of Cash Flows – Nonmajor Proprietary Funds 117 Combining Statement of Net Position – Internal Service Funds 118 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds 119 Combining Statement of Cash Flows – Internal Service Funds 120 Combining Statement of Fiduciary Net Position – Custodial Funds 121 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds 122 Statistical Section Financial Trends Net Position by Component 124 Changes in Net Position 126 Fund Balances of Governmental Funds 130 Changes in Fund Balances of Governmental Funds 132 Revenue Capacity General Governmental Tax Revenues by Source 134 Water and Wastewater Rates 135 Assessed Value of Taxable Property 137 Direct and Overlapping Property Tax Rates 138 Principal Property Taxpayers 140 Property Tax Levies and Collections 141 April 4, 2023 Item #5 Page 7 of 195 {city of Carlsbad Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 Table of Contents Page Statistical Section (continued) Debt Capacity Ratios of Outstanding Debt by Type 143 Schedule of Direct and Overlapping Bonded Debt 144 Direct and Overlapping Debt 146 Legal Debt Margin Information 148 Pledged-Revenue Coverage 150 Demographic and Economic Information Demographic and Economic Statistics 152 Principal Employers 155 Operating Information Authorized Full Time City Government Employees by Program Area 156 Operating Indicators by Function/Program 158 Capital Asset Statistics 160 April 4, 2023 Item #5 Page 8 of 195 {city of Carlsbad April 4, 2023 Item #5 Page 9 of 195 Administrative Services Finance Department 1635 Faraday Avenue ° Carlsbad, CA 92008 ° 442-339-2430 t www.carlsbadca.gov March 13, 2023 Honorable Mayor, City Council, and Residents of the City of Carlsbad City of Carlsbad Carlsbad, CA 92008 LETTER OF TRANSMITTAL FISCAL YEAR 2021-22 ANNUAL COMPREHENSIVE FINANCIAL REPORT Honorable Mayor, City Council, and Residents: I am pleased to present the fiscal year 2021-22 Annual Comprehensive Financial Report for the City of Carlsbad (“city”). The information found in this report is provided by management to the City Council and the public to assist those interested in understanding the fiscal condition of the city as of June 30, 2022. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls that has been established for this purpose. Because the cost of internal controls should not outweigh its benefits, the city’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. State law and the Carlsbad Municipal Code require that an annual financial report is prepared. This report fulfills that obligation. It has been prepared in conformity with generally accepted accounting principles (GAAP) and with the financial reporting requirements prescribed by the Governmental Accounting Standards Board (GASB). The independent auditing firm, Lance, Soll & Lunghard, LLP, has issued an unmodified (“clean”) opinion on the city’s financial statements for the fiscal year that ended June 30, 2022. The independent auditor’s report is located at the front of the financial section of this Annual Comprehensive Financial Report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. As a recipient of federal and state financial assistance, the city is required to have a “Single Audit” performed by an independent audit firm. The Single Audit is designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require that the independent auditor report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports will be completed in March 2023 and made publicly available on the city’s website in the city’s separately issued Compliance Reports and Other Financial Information. iApril 4, 2023 Item #5 Page 10 of 195 {city of Carlsbad Profile of the City of Carlsbad Carlsbad incorporated in 1952 as a General Law City, although its “village” area dates back more than 100 years. In June 2008, the voters of Carlsbad overwhelmingly approved the city to change to a Charter City. Carlsbad is located on the southern California coast, about 35 miles north of the City of San Diego. The city is governed by a five-member City Council under the Council Manager form of government. The City Council is elected by district, on a staggered basis, for a term of four years. The city currently has four districts; however, the mayor is elected at large. The City Clerk and City Treasurer are also elected to four-year terms. The City Council appoints the City Manager and City Attorney. The city covers approximately 39 square miles and has a population of approximately 115,000, with an expected built out population of 120,000 residents. Commercial activities in the city include: a major regional shopping center, a specialty outlet center, a commercial center with upscale retail shops, 43 hotels offering 5,059 rooms, 325 short-term vacation rentals and 668 timeshares for tourist lodging, over 23 auto dealers, high technology, multimedia and biomedical businesses, electronics, golf apparel and equipment manufacturers, several business and light industry parks, and numerous land developers building single and multi-family housing in a variety of community settings. This report includes financial statements for the City of Carlsbad, the Housing Authority of the City of Carlsbad, the Carlsbad Public Financing Authority, and the Carlsbad Municipal Water District. Through these entities, Carlsbad provides a full range of services to its citizens and customers including: x Development services x Fire and paramedic services x Housing programs x Library and arts programs x Park lands x Police protection services x Recreation programming for all ages x Solid waste services x Street construction and maintenance x Water delivery system x Wastewater system In addition to the full range of services normally associated with a municipality, Carlsbad offers programs to help residents and businesses. The city’s Housing Authority administers federal housing assistance to more than 500 low- income households in Carlsbad, and older residents can take advantage of Carlsbad’s senior citizen programs. iiApril 4, 2023 Item #5 Page 11 of 195 Carlsbad San Diego county Budget Process The City Council sets the overall policy direction for Carlsbad and helps staff prioritize programs, projects and services to support that direction. Public input plays a critical role in setting both the long-range policy direction of the city and decisions about day-to-day spending. Public input specific to the budget process involved four main opportunities: City Council goal setting, presentation of goal work plans, presentation of the preliminary budget and the budget adoption public hearing. The City Council gathered in the winter and spring of 2022 to develop goals for the city’s five-year strategic plan. Taking into account work that was already put in motion through public input into the fiscal year 2021-22 budget, the City Council asked staff to focus on five main goal themes: x Community Character: maintain Carlsbad’s unique community character and connectedness x Quality of Life & Safety: prioritize the safety and well-being of the community x Sustainability & the Natural Environment: protect the environment and natural resources x Economic Vitality: foster a healthy local economy x Organization Excellence & Fiscal Health: be a model for effective and efficient local government Budgetary control for the city is maintained through its accounting systems. Expenditures may not exceed budgeted figures at the fund level. Monthly reports summarizing the results of operations for the city’s more significant funds are provided to the City Council and the public on the city’s website. iiiApril 4, 2023 Item #5 Page 12 of 195 BUDGET SCHEDULE January Departments begin preparing budgets April Prepare and refine draft budget May Preliminary budget to the City Council June Anal budget adoption Community Vision These nine core values make up the Carlsbad Community Vision. They were developed in collaboration with the community and drive both the day to day work of the city and its long-term planning. Small town feel, beach community character and connectedness – Enhance Carlsbad’s defining attributes—its small town feel and beach community character. Build on the city’s culture of civic engagement, volunteerism and philanthropy. Open space and the natural environment – Prioritize protection and enhancement of open space and the natural environment. Support and protect Carlsbad’s unique open space and agricultural heritage. Access to recreation and active, healthy lifestyles – Promote active lifestyles and community health by furthering access to trails, parks, beaches and other recreation opportunities. The local economy, business diversity and tourism – Strengthen the city’s strong and diverse economy and its position as an employment hub in north San Diego County. Promote business diversity, increased specialty retail and dining opportunities, and Carlsbad’s tourism. Walking, biking, public transportation and connectivity – Increase travel options through enhanced walking, bicycling and public transportation systems. Enhance mobility through increased connectivity and intelligent transportation management. Sustainability – Build on the city’s sustainability initiatives to emerge as a leader in green development and sustainability. Pursue public/private partnerships, particularly on sustainable water, energy, recycling and foods. History, the arts and cultural resources – Emphasize the arts by promoting a multitude of events and productions year-round and cutting-edge venues to host world class performances and celebrate Carlsbad’s cultural heritage in dedicated facilities and programs. High quality education and community services – Support quality, comprehensive education and lifelong learning opportunities, provide housing and community services for a changing population, and maintain a high standard for citywide public safety. Neighborhood revitalization, community design and livability – Revitalize neighborhoods and enhance citywide community design and livability. Promote a greater mix of uses citywide, more activities along the coastline and link density to public transportation. Revitalize the downtown Village as a community focal point and a unique and memorable center for visitors and rejuvenate the historic Barrio neighborhood. ivApril 4, 2023 Item #5 Page 13 of 195 e Q Economic and Fiscal Issues Facing the City At the time of developing the Fiscal Year 2022-23 Proposed Budget, the world, nation, state and city continues to grapple with the ongoing economic effects of COVID-19. In the City of Carlsbad, the most profound effects have been concentrated in the restaurant, travel, entertainment, and leisure and hospitality sectors. Hospitality and tourism businesses have been hard-hit over the past two years with fluctuating health order restrictions and consumer confidence impacting travel. Hotel occupancy in January 2022 was significantly lower than January 2019 levels. However, occupancy rose sharply in recent months, with March 2022 occupancy (75.5%) nearly matching March 2019 occupancy levels (76.5%). With the Omicron surge behind us, tourism leaders are optimistic that individual and family travel could continue to rise. Prior to the pandemic, the city boasted a low unemployment rate of 2.9%. At the height of the pandemic, unemployment spiked to 13.8%. Over the past two years, the unemployment rate has had some correlation to the prevalence of COVID-19 in the region. However, despite the Delta and Omicron surges, which caused an uptick in unemployment at the state level in December 2021 (6.5%), unemployment continued to fall at the county and city level. The unemployment rate in March 2022 was 4.2% at the state level, 3.4% at the county level, and 3.1% in Carlsbad. This is 0.2% above pre-pandemic lows. Currently, many employers are citing difficulty in finding and retaining workers. In March 2022, nationally, there were 1.9 open jobs for every unemployed worker. This is one underlying cause to increased wage pressures and difficulty in retaining employees. National interest rates, which dropped significantly during the pandemic, have now eclipsed pre-pandemic rates for all categories. One-year rates are currently at 1.63%, ten-year rates are currently at 2.32%, and 30-year rates are at 2.44%. With current inflation concerns, the Federal Reserve has begun to raise interest rates and indicates plans for further rate increases over the next several quarters. To spawn economic recovery, several federal, state and local programs were approved, providing substantial resources for businesses. These include the American Rescue Plan; the Paycheck Protection Program, for which Carlsbad companies were recipients at a higher rate than any other North County city in the first round; the State of California Small Business Relief Program; and the City of Carlsbad’s Economic Recovery and Revitalization Initiative. Most health order restrictions on businesses have now been lifted since the fiscal year 2021-22 budget was adopted on June 8, 2021, and the results have been positive across most of the city’s revenue streams. While the city is beginning to have a clearer picture of our revenue outlook, economic uncertainty resulting from inflation and geopolitical conflict has created strong demand for conservative revenue projections into the future. Maintaining good fiscal health must remain a top priority. Meeting this objective preserves the city’s ability to continue providing important programs and services to the community. Past economic challenges and prudent financial planning have provided opportunities for developing solutions to address lost revenues while preserving vital services. Revenues, along with the local economy, are expected to continue to recover as COVID-19 restrictions lessen, but this recovery will be partially offset by the end of federal and state aid that was provided as well as uncertainties surrounding rising inflation and geopolitical conflict. Expenditures and revenues will need to be closely monitored as a result. Disciplined spending and long-term financial planning remain critical to ensuring the future sustainability of important city programs and services. vApril 4, 2023 Item #5 Page 14 of 195 Long-Term Financial Planning Strategic planning begins with determining the city's fiscal capacity based upon long-term financial forecasts of recurring available revenues and future financial obligations. Prior to the adoption of the annual budget, the finance department will prepare a Ten-Year Financial Forecast (“Forecast”) that evaluates known internal and external issues impacting the city's financial condition. The methodology for preparing the Forecast can be found in the appendix of this document. The Forecast is intended to help the city: x Attain and maintain financial sustainability; x Have sufficient long-term information to guide financial decisions; x Have sufficient resources to provide programs and services for the stakeholders; x Identify potential risks to on-going operations in the long-term financial planning process and communicate these risks on an annual basis; x Establish mechanisms to identify early warning indicators; and x Identify changes in expenditure or revenue structures needed to deliver services or to meet the goals adopted by the City Council. It is important to stress that the Forecast is not a budget. The Forecast does not dictate expenditure decisions, but rather highlights the need to prioritize the allocation of the city’s limited resources to ensure the continuation of core city services. The purpose of the plan is to provide the City Council, key stakeholders, and the public an overview of the city’s fiscal health based on various financial and service level assumptions over the next ten years. It also allows for the discussion of necessary steps to be initiated during the development and implementation of future budgets. The Forecast is intended to look beyond the annual budget cycle and serve as a planning tool to bring a long-term perspective to the budget process. The Forecast also takes into consideration Council Policies that need to be met on an annual basis including General Fund reserve guidelines, pension funding guidelines, etc. Should projected expenditures exceed projected revenues in any given year, the City Manager will need to identify steps to mitigate the shortfalls prior to presenting a balanced budget to the City Council for consideration during the annual budget development process. It should be noted that the Forecast is a snapshot in time and will change as additional information is made available and incorporated into the fiscal projections. The swift fiscal recovery from COVID-19 paired with economic uncertainty surrounding inflation and recessionary risk has increased the volatility of projecting future revenues. The city prepares a long-term financial model for both capital and operating needs. It is imperative that the city plan for the impacts of development, the construction and operation of new public facilities, and planning resources needed to build them. The city prepares a ten-year operating forecast for the General Fund, a five-year Strategic Digital Transformation Investment Program, and a fifteen-year Capital Improvement Program. As part of the new Strategic Digital Transformation Investment Program and the Capital Improvement Program, the city annually calculates the amounts needed to pay for the projects and calculates the anticipated operating budget impacts. In this way, the city can anticipate the effects of development from both a capital and an operating perspective. One important initiative the city has undertaken to ensure its financial health is the development of an Infrastructure Replacement Fund. With this fund, the city sets aside a portion of General Fund revenues on an annual basis for major maintenance and replacement of its infrastructure. Much of the city’s infrastructure is relatively new; thus, the city is just now experiencing the impact of maintenance requirements. By setting aside funds now, the city’s viApril 4, 2023 Item #5 Page 15 of 195 residents can be assured that the proper maintenance and replacement will be performed, as needed, on streets, parks and many facilities for which the city is responsible. Employee retirement costs continue to require ongoing prudent fiscal management. The City Council issued a pension funding policy to codify its commitment to ensure that resources will be available to fulfill the city’s contractual retirement promises to its employees, and to minimize the chance that the funding of these benefits will interfere with providing essential services to the community. The policy outlines a funding discipline to ensure that adequate resources will be accumulated in a systematic and disciplined manner to fund the long-term cost of benefits to the plan participants and annuitants. Overall funding levels of the city’s plans are reviewed annually to ensure the city’s funding level remains at least 80% – the city’s minimum targeted level. While this enhances the city’s funding position, risks remain in the system. Required employer contributions will continue to increase over the next few years and actual contribution increases could exceed expectations if future investment return rates or other factors are unfavorable. Revenue and expenditure growth projections The city’s forecast considers the annual growth of all currently known elements of city revenues and expenditures. Projecting revenues is particularly difficult when considering the short-term impacts of COVID-19 on the economy, leaving the timing of an economic rebound and future growth volatility uncertain. When forecasting expenditures, some of the major factors considered are rising healthcare and workers’ compensation costs, underperforming pension programs, and general inflation in both personnel and operating expenditures. Currently, the city projects expenditure growth will outpace revenue growth in the near future. To support the increase in ongoing costs, the city will need to consider alternative options, such as ways to increase economic activity that will drive sustainable increases in the city’s current revenue base, an expansion of the city’s revenue base, or a reduction of the city’s current service offerings and associated costs. American Rescue Plan Act The American Rescue Plan Act of 2021 was passed on March 11, 2021 which allocated $12.6 million in COVID-19 recovery funds to the city. The American Rescue Plan Act provides an infusion of resources to help turn the tide on the pandemic, address its economic fallout and lay the foundation for a strong recovery. In accordance with the American Rescue Plan Act, funds are allowed to be used through Dec. 31, 2024 and may be used to: x Support urgent COVID-19 response efforts, x Replace lost public sector lost revenue, x Support immediate economic stabilization, and x Address systemic public health and economic challenges. The funds are restricted from being used to offset tax cuts or for pension liabilities. These funds are provided in two tranches: the first tranche, in which $6.3 million was received in May 2021, and the second tranche, was received in June 2022. The city has appropriately used the funds as a replacement of revenue to partially offset the negative economic impacts from the pandemic. To substantiate the use of these funds for revenue replacement, the American Rescue Plan Act requires the city to demonstrate the extent of revenue reduction. Following the final guidance from the U.S. Department of the Treasury, the city’s current projected revenue loss from the COVID-19 pandemic is estimated to be more than the $12.6 million in funding awarded to the city. viiApril 4, 2023 Item #5 Page 16 of 195 FINANCIAL MANAGEMENT POLICIES Revenue Policies The development and maintenance of balanced and reliable revenue streams will be the primary revenue objective of the city. Efforts will be directed to optimize existing revenue sources while periodically reviewing potential new revenue sources. One method to maximize existing revenue sources it to promote a healthy business climate. Revenue estimates will be prepared on an annual basis during the preparation of the budget and major revenue categories will be projected on a ten-year basis. Revenues will be estimated conservatively using accepted standards and estimates provided by the state and other governmental agencies. Alternative revenue sources will be periodically evaluated to determine their applicability to meet identified city needs. Sources of revenue will be evaluated and modified as necessary to assure a diversified and growing revenue base that improves the city’s ability to handle fluctuations in individual revenue sources. Revenues from “one-time” or limited duration revenue sources will not be used for ongoing operating expenses. Fees and charges for services will be evaluated and, if necessary, adjusted annually to ensure that they generate sufficient revenues to meet service delivery costs. The city will establish user charges at a level generally related to the full cost (operating, direct, indirect and capital costs) of providing the service, unless the City Council determines that a subsidy from the General Fund is in the public interest. The city will also consider market rates and charges levied by other municipalities of similar size for like services in establishing rates, fees and charges. Enterprise and internal service funds will be self-supporting. Expenditure and Budget Policies Major expenditure categories will be projected on a ten-year basis. The city will operate on a current funding basis. Expenditures will be budgeted and controlled so as not to exceed current revenues plus the planned use of any accumulated fund balances. Annual budgeted operating expenditures shall not exceed annual operating revenues, including budgeted use of reserves, unless directed by the City Council. The City Manager shall prepare and submit to the City Council annually a proposed operating, strategic digital transformation investment program and capital improvement program budget each year, and the budgets will be adopted by June 30 of each year. Budget status reports are prepared monthly, distributed to all departments and posted on the city’s website. Because the budget is based on estimates, from time to time, it is necessary to make adjustments to fine tune the line-items within it. Various levels of administrative control are utilized to maintain the budget’s integrity. Program managers are accountable for the line-item level of control of their individual program budgets. Department heads are accountable for the fund level of control for funds within their departments. The Finance Department oversees the general level of accountability related to budgetary integrity through systematic checks and balances and various internal controls. Council Policy No. 87 – General Fund Surplus Policy outlines the use of surplus funds resulting from unrestricted General Fund actual revenues exceeding total actual expenditures, encumbrances, and commitments for a given fiscal year. It is the intent of the city to use all surplus funds generated to meet reserve policies, and the reduction or avoidance of long-term liabilities. The city will not use year-end surplus funds to fund ongoing operations unless otherwise approved by the City Council. The city will use surplus funds to replenish any General Fund deficiencies, up to the minimum level as set forth in Council Policy No. 74 – General Fund Reserve Policy and then any pension liability deficiencies, as defined in City Council Policy No. 86 – Pension Funding Policy. viiiApril 4, 2023 Item #5 Page 17 of 195 The City Manager is authorized to approve the carryforward of any unencumbered and unspent and unencumbered budget for a particular item equal to or less than $100,000 into the following fiscal year. These items will be one-time expenditures and not for ongoing services, programs or personnel. Any remaining surplus funds in excess of reserve and pension liability deficiencies and items equal to or greater than $100,000 will be brought forward for City Council approval. The city adheres to long-range financial planning which forecasts revenues and expenditures over a long-term period, using assumptions about economic conditions, future spending scenarios, and other salient variables. Financial planning allows the city to execute overall strategies to support the process of aligning financial capacity with long-term service objectives. Financial forecasts are updated at least once a year, or more often, if unexpected changes in economic conditions or other unforeseen circumstances exist. Any significant changes will be reported to the City Manager and the City Council. Otherwise, these financial forecasts will be used as a tool during the development of the annual budget process and to set utility rates as needed. Reserve Policies The city formally mandates the levels at which reserves shall be maintained for the General Fund and informally sets minimum target levels for the enterprise and internal service funds. Council Policy No. 74 – General Fund Reserve Policy was most recently updated and approved by the City Council in June 2019. The purpose of the policy is to establish a target minimum level of designated reserves in the General Fund to: x Reduce the risk of financial impacts resulting from a natural disaster or other catastrophic events; x Respond to the challenges of a changing economic environment, including prolonged downturns in the local, state or national economy; and x Demonstrate continued prudent fiscal management and creditworthiness. The city commits to maintaining General Fund reserves (the term reserve refers to any unassigned fund balance) at a target of 40% of General Fund annual operating expenditures. The total reserve level will be calculated using the prior year’s adopted General Fund budgeted expenditures. At the discretion of the City Council, reserve levels in excess of the 40% target requirement may be used for one-time opportunity cost purposes. Reserve funds will not be spent for any function other than the specific direction in the annual budget or by a separate City Council action. As a general budget principle concerning the use of reserves, the City Council decides whether to appropriate funds from reserves. Reserve funds will not be spent for any function other than the specific purpose of the reserve account from which they are drawn without specific direction in the annual budget or by a separate City Council action. The Wastewater Fund and Water Operating Fund Reserves will target a reserve funding level of 40%. The reserve amount is calculated by dividing unassigned fund balance by total budgeted operating expenses plus replacement transfers plus budgeted debt service payments. The annual budget process and the setting of utility user rates and charges will be used to achieve and maintain the target reserve level. The city’s Workers’ Compensation Fund will maintain a minimum reserve equal to the estimated outstanding claims as calculated by a third-party administrator. Additional reserve amounts may be set aside as deemed appropriate based on a third-party actuarial study completed at two year intervals. During the annual budget process, the target confidence level will be compared with the projected fund balance, and, if the projected fund balance is greater than ixApril 4, 2023 Item #5 Page 18 of 195 or lesser than the target, a plan to adjust the fund balance will be considered, using either or both increasing revenues through interdepartmental charges and one-time cash contributions from those funds contributing to the shortfall. The Risk Management Fund (General Liability) will maintain a minimum reserve equal to the estimated outstanding claims as calculated by a third-party administrator. Additional reserve amounts may be set aside as deemed appropriate based on a third-party actuarial study completed at two-year intervals. During the annual budget process, the reserve level will be compared with the projected fund balance, and, if the projected fund balance is greater than or lesser than the target, a plan to adjust the fund balance will be considered, using either or both increasing revenues through interdepartmental charges and one-time cash contributions from those funds contributing to the shortfall. The Information Technology Asset Replacement Fund shall maintain a minimum reserve level defined as the amount of accumulated depreciation of capitalized assets based on the original cost of each capitalized asset, and up to a maximum reserve level defined as the accumulated depreciation based on the estimated replacement cost of each capitalized asset. The Vehicle Asset Replacement Fund shall maintain a minimum reserve level defined as the amount of accumulated depreciation of capitalized Fleet assets based on the original cost of each capitalized asset, and up to a maximum reserve level defined as the accumulated depreciation based on the estimated replacement cost of each capitalized asset. Investment Policy The city has established a formal Investment Policy. It is the policy of the City of Carlsbad to invest public funds not required for immediate day-to-day operations in safe, liquid and medium-term investments that shall yield an acceptable return while conforming to all California statutes. It is intended that the policy cover the investment activities of all contingency reserves and inactive cash under the direct authority of the city. Investments of the city and its component units will be made on a pooled basis; however, investments of bond proceeds will be held separately if required. Pension Funding Policy The city’s Council Policy No. 86 – Pension Funding Policy embodies funding and accounting principles to ensure that resources will be available to fulfill the city’s contractual promises to its employees. The policy objectives include using actuarially determined contributions, or ADC, provided by CalPERS, funding the full amount of the ADC each year, maintaining no less than a combined minimum of 80% funded ratio, and demonstrating accountability and transparency by communicating all information necessary for assessing the city’s progress toward meeting its pension funding objectives. In the event the city is unable to meet the minimum combined pension funded ratio of 80% with current resources (i.e., without borrowing or using reserves), the Finance Director will identify a reasonable period to return to a minimum 80% funded ratio status. Long Term General Fund Capital Funding Policy The city’s Council Policy No. 91 – Long Term General Fund Capital Funding Policy ensures the needs of the city are met and demonstrates continued prudent fiscal management by providing a funding source for long-term, large value capital purchases. Many city assets demand large capital expenditures, examples include roads, building, parks, and information technology infrastructure. The city funds the General Fund portion of these necessary investments xApril 4, 2023 Item #5 Page 19 of 195 by adopting an annual budget that includes a transfer from the General Fund to one or more of the city’s long-term capital funds. These long-term capital funds include the General Capital Construction Fund, the Infrastructure Replacement Fund and the Technology Investment Capital Fund. The city commits to targeting a transfer to the city’s long-term capital funds of 6% of budgeted General Fund revenues. The transfers are proposed during the annual budget process or on an as needed basis for the City Council’s consideration. Full versions of these policies and other City Council policies are available on the city’s website at www.carlsbadca.gov/city-hall/laws-policies/council-policies. Strategic Digital Transformation Investment Program The Strategic Digital Transformation Investment Program, or SDTIP, is a comprehensive approach to planning for and funding digital transformation efforts throughout the city. It is informed by the City Council approved Connected Carlsbad: An Inclusive City Innovation Roadmap, the Internal Digital Information Network Action Plan, the Information Technology Strategy, and complimented by a five-year projected roadmap of digital transformation investments. The SDTIP is the strategic plan for technology and digital transformation combined with project descriptions, costs, funding sources and timelines. The purpose of this program, new for fiscal year 2021-22, is to provide for an annual investment strategy, not a commitment for spending, and outlines a five-year expenditure plan for future digital transformation and technology projects and the corresponding revenues necessary to pay for them. This investment program is organized into the five primary goal areas approved by the City Council: x Pursue Communitywide Digital Transformation focuses on the foundational elements, including connectivity, up-to-date hardware and software, and a robust security strategy while providing an aspirational vision for the future. x Build Capacity for Data-Driven Government focuses on the policies, procedures and staffing necessary for the city to fully capture the value of emerging models of data analytics. x Foster a Vibrant Civic Engagement Culture builds upon the first two goals with a human- centered perspective that an engaged city that uses data and technology in a way that respects people and their privacy will support a vibrant culture where residents, organizations and businesses are invested in their community and its future. x Enhance Accessibility and Transparency recognizes that open government and approaching problem-solving from an accessibility perspective leads to better outcomes for all. x Promote Safety and Sustainability Through Connectivity leads to understanding the interconnected nature of our communities that can achieve environmental, mobility and sustainability goals when approached in a cross-departmental and community informed manner. Projects will receive an appropriation that authorizes spending in the amount specified for the adopted fiscal year only. Estimated budget information is shown for a five-year period to provide the most comprehensive information about known future projects. Spending authority in future years is not granted until adoption of the annual proposed SDTIP budget associated with each year. The Information Technology (IT) Department is organized into five divisions: Enterprise Applications, Infrastructure and Operations, Geographic Information Systems, Public Safety Technology and Administration. These five divisions work together to provide services in three core areas that are crucial to digital transformation efforts: xiApril 4, 2023 Item #5 Page 20 of 195 Investing in Digital Transformation As the city continues to grow and develop, the use of technology has also grown exponentially over the last two decades. The SDTIP outlines the financial resources needed to ensure that the technology infrastructure is in place to enable the city to provide services to the community. Prudent financial planning will ensure that ongoing funding for investment in technology is available. SDTIP Project Evaluation Making decisions on technology implementations is a challenging and complex task. The challenging nature of these decisions is exacerbated by the expanding reach of technology and the increasingly interdisciplinary nature of emerging technologies. A major component of the SDTIP is the establishment of a cross-departmental approach to technology leadership to evaluate, prioritize, budget for and adopt digital transformation efforts. A new administrative order has been developed that provides a collaborative forum for key staff to validate and prioritize technology implementations. This approach also provides a structured venue to explore how particular configurations of a technology implementation may positively or negatively affect others within the organization. The process to evaluate digital transformation initiatives is ongoing and meetings may be held on a monthly, bimonthly or quarterly basis depending on the need. A number of factors are considered when putting together projects for the five-year program. All digital transformation and technology projects shall be consistent categories on the right. Proposed projects are evaluated and prioritized by a set of criteria that include: x Alignment with City Council goals and IT strategic plans, architecture, security and technology standards, including legislative and regulatory mandates, and other goals x Coordination of IT investments across the enterprise to avoid duplication, maximizing the return on investment and increasing efficiency Strategic Digital Transformation Investment Program Public health and safety City Mission, Vision and Organizational Values Community values City Council goals Governing and policy documents Funding availability Environmental review Technology standards and strategic plans Applications Enterprise applications Geographic Information Systems Public Safety technology Business systems Infrastructure Networking Datacenter systems Client systems Security Administration Contracts and agreements Accounts payable Asset replacement xiiApril 4, 2023 Item #5 Page 21 of 195 x Effective articulation of the business case including valid operational benefits of the project x Accuracy and reasonableness of cost and benefit estimates x Consideration of potential project risks and identification of appropriate means to manage those risks x Adherence to standard project management practices x Capacity of staffing resources to implement the project As the SDTIP is implemented throughout the year, staff will continually re-evaluate projects’ scopes, costs and schedules to responsibly and cost-effectively manage city resources. SDTIP Fiscal Year 2021-22 Appropriations In fiscal year 2021-22, there are approximately 33 continuing and new projects planned over the next five years at an estimated total cost of $26.9 million. Included in the $26.9 million is approximately $15.4 million in estimated new costs over the course of the same timeframe to provide additional funding for the continuation of existing projects as well as funding for new projects. Within the $15.4 million is approximately $4.9 million of estimated new appropriations for fiscal year 2021-22 for these same projects. Pursue Communitywide Digital Transformation $13.1 million This goal includes updating connectivity, providing up-to-date hardware and software, and a robust security strategy. Build Capacity for Data-driven Decision Making $0.8 million This goal’s projects include the policies, procedures and staffing necessary for the city to fully capture the value of emerging models of data analytics. It also includes building a comprehensive approach to citywide data management to enable data-rich key performance metrics and effective operation of city departments. A data policy and resources will be created to align departments with standards of data cataloging for compliance ease of data sharing Build Capacity for Data-driven Decision Making 3% Enhance Accessibility and Transparency 6% Foster a Vibrant Civic Engagement Culture 6% Promote Security and Sustainability through Connectivity 36% Pursue Communitywide Digital Transformation 49% Estimated Total Projects Costs by Goal FY 2021-22 to FY 2025-26 $26.94 million xiiiApril 4, 2023 Item #5 Page 22 of 195 Foster a Vibrant Civic Engagement Culture $1.6 million The city’s civic engagement culture builds upon the first two goals with a human-centered perspective that an engaged city that uses data and technology in a way that respects people and their privacy. Projects in this category will support a vibrant culture where residents, organizations and businesses are invested in their community and its future. Enhance Accessibility and Transparency $1.7 million This goal recognizes that open government and approaching problem-solving from an accessibility perspective leads to better outcomes for all. Projects in this category include Civic Engagement with Open Data, Online Permitting/Electronic Reviews, Records Management System and a Virtual Permitting Counter. Promote Security and Sustainability through Connectivity $9.7 million Projects in this goal include the annual replacement of hardware and technology infrastructure, a Facility Security Master Plan, the replacement of the Police Computer Aided Dispatch System and a Unified Communication System to replace the city’s aging phone system. SDTIP Future Appropriations The City of Carlsbad’s SDTIP for fiscal year 2021-22 to fiscal year 2025-26 outlines 33 projects at an estimated total cost of $26.94 million. Of the $26.94 million, $15.41 million is for new or increased funding for projects over the next five years. The information provided for future years reflects the most comprehensive snapshot of known or anticipated future projects as well as associated estimated costs. Build Capacity for Data- driven Decision Making 5% Enhance Accessibility and Transparency 7% Foster a Vibrant Civic Engagement Culture 3% Promote Security and Sustainability through Connectivity 47% Pursue Communitywide Digital Transformation 38% Estimated Future Projects Costs by Goal FY 2021-22 to FY 2025-26 $15.41 million xivApril 4, 2023 Item #5 Page 23 of 195 Capital Improvement Program The City of Carlsbad Capital Improvement Program, or CIP, reflects the city’s ongoing commitment to maintaining the highest standards of quality facilities for the community today and in the future. It is a planning document, not a commitment for spending. The 15-year program outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures. Projects that are shown in the CIP are generally defined as any construction, rehabilitation or replacement of major infrastructure such as streets, libraries, parks, fire stations and administrative facilities, water, sewer and drainage facilities, and other facilities that are located on or in the ground. In most cases, the total construction cost of each of these assets is recorded and tracked as part of the city’s inventory of capital infrastructure assets and other city-owned property. Once the City Council adopts the proposed annual CIP budget, projects receive an appropriation that authorizes spending in the amount specified for the adopted fiscal year only. Estimated budget information is shown for a 15-year period to provide the most comprehensive information about known future projects. Spending authority in future years is not granted until adoption of the annual proposed CIP budget associated with each year. Carlsbad’s philosophy is to take a proactive, long-range planning approach to building high quality facilities and infrastructure that support the needs and priorities of the community. The CIP is organized by the following project classifications: Investing in Quality of Life As the city continues to grow and develop, there is a corresponding increase in the demand for development-related services and new facilities. To ensure that the necessary infrastructure and facilities are built on a schedule that meets or exceeds this demand, the citizens of Carlsbad adopted a Growth Management Plan in 1986. The plan was Planning Study Plan Assessment Maintenance & Operations Technical master plans Repair Refurbishment/ Rehabilitation Modifications Improvements Maintenance Program Monitoring Replacement Upgrade Capital Projects Regulatory & Policy- Driven: Legal requirements, compliance with Growth Management Plan, Climate Action Plan, defined projects to implement policies, plans and goals adopted by City Council Community Enhancements: new facilities, expansions, parks & trails, traffic signals, coastal improvements Project Accounting CFD #1 Admin Open Space Acquisition Loans Repayment/Transfer xvApril 4, 2023 Item #5 Page 24 of 195 established to manage development within the city by linking residential, commercial, and industrial development directly to standards for availability of public services and facilities. The Growth Management Plan states that unless a standard level of facilities is available to meet new demands resulting from the city’s growth, development cannot proceed. Recently, certain actions, such as imposing a moratorium, have been determined to be impermissible by the California Housing and Community Development Department, per Senate Bill 330, Housing Crisis Act of 2019, which became effective on Jan. 1, 2020. The detailed level of planning required by Growth Management has allowed the city’s CIP to anticipate the funding needed for capital improvements in the next 15 years. Facilities such as community centers, parks and fire stations have been constructed and opened to the public under this program. The CIP has been designed to specifically address areas where new or expanded facilities will be needed to maintain compliance with the adopted performance standards. With the adoption of the fiscal year 2021-22 CIP, compliance with the Growth Management Plan is continued. Prudent financial planning has ensured ongoing funding to modernize, repair, and replace existing infrastructure projects through numerous asset management programs, which ensure adequate inspection, maintenance, and replacement of buildings and parks, water, sewer and drainage systems, bridges, and roadways systems. CIP Project Evaluation Development of the CIP is a team effort involving all operational departments, the City Manager’s Office, the City Council, and the community. Community feedback on infrastructure needs is considered and incorporated as appropriate. The CIP is fully vetted at multiple levels of the city organization by appropriate staff using an inclusive and transparent process, and reviewed on a quarterly basis. As the CIP is implemented throughout the year, staff continually re-evaluate projects’ scopes, costs and schedules to responsibly and cost-effectively manage infrastructure assets at the required levels of service throughout their lifecycle. Recommendations for project funding consider current project status, project scheduling and sequencing requirements, project constraints, and current staff capacity. Project charters are updated to include project description, location, summary of need, justification including any legislative or policy citations, cost estimates, and project scores. In anticipation of revenue decreases in some capital funding sources, staff recommended funding adjustments in fiscal year 2021-22 that focused on matching existing resources with realistic and achievable project schedules. New project requests were minimized and the city remains committed to continue work on projects that are already underway. Capital Improvement Program Public health and safety City mission, vision and organizational values Community values Environmental review Governing and policy documents Funding availability City Council goals xviApril 4, 2023 Item #5 Page 25 of 195 CIP Fiscal Year 2021-22 Appropriations In the fiscal year 2021-22 CIP, there are approximately 254 continuing and new projects planned over the next 15 years. The fiscal year 2021-22 CIP outlines $56.2 million in new appropriations to provide additional funding for the continuation of existing projects as well as funding for 21 new projects. Projected revenues during the same fiscal year are estimated at $65.8 million. Civic Buildings and Facility Maintenance $8.2 million This category includes a variety of facilities such as fire stations, libraries and the new City Hall. Costs include repair, maintenance and replacement of civic buildings. Parks $2.6 million Projects include improvements and enhancements to existing parks, such as playground resurfacing, picnic areas and other needs identified by the community and in recently updated parks master plans. Drainage $7.2 million The city’s drainage infrastructure plays an important role in handling storm water runoff flows, as well as maintaining the water quality of the city’s creeks, lagoons and ocean. As the city continues to age, it is increasingly necessary to balance repairing and replacing the existing lines with enhancing the current infrastructure to accommodate future needs. xviiApril 4, 2023 Item #5 Page 26 of 195 L - FY 2021-22 Appropriations by Category $56.2 million Project Accounting~ 25% Planning 1% Maintenance & Operations 40% Capital Projects 34% Wastewater $11.5 million The city’s sewer, or wastewater, projects include numerous pipeline construction and rehabilitation projects, as well as improvements to the Encina Wastewater Treatment facility. Most new lines are built and paid for with impact fees collected with new development. Water and Recycled Water $3.1 million Future water and recycled water projects include construction of new pipe lines, replacement of existing waterlines and reservoir improvements. The Carlsbad Municipal Water District has been producing and delivering recycled water for over 30 years. Transportation $23.6 million People of all ages and abilities want to go places safely and conveniently in Carlsbad, whether they drive, walk, bike, or ride a bus or train. Carlsbad continues to invest in modernizing roads, leveraging technology to improve traffic systems, and making timely repairs and rehabilitation of the roadways, bridges, sidewalks and other assets in public rights-of-way throughout the city. CIP Future Projects The CIP for fiscal year 2021-22 to fiscal year 2035-36 outlines approximately 254 projects at a cost of $669 million in new or additional funding. Long-range planning and responsible asset management play key roles in the development of future capital projects. Using data from various infrastructure master plans, ongoing asset condition assessments, technical modelling, field inspections as well as community feedback, the information provided for future years reflects the most comprehensive snapshot of known or anticipated future projects as well as associated estimated costs. xviiiApril 4, 2023 Item #5 Page 27 of 195 III T • ,Hr , r , r Transportation 23% Water/Recycled Water 22% Future Project Costs By Type FY 2021-22 to FY 2035-36 $669 million Unfunded Projects There are six projects identified in the Capital Improvement Program for which there is no identifiable funding source and, in some cases, where only partial funding has been identified. The city will investigate obtaining possible external funding, such as federal and state grants, loans, or other financing sources. Once funding is identified for these projects, the project costs will have to be reviewed and updated to reflect actual cost estimates. The unfunded projects do not receive annual inflationary increases. Two projects are partially funded by the Traffic Impact Fee Program. The program was planned to generate enough revenue to pay for 20% of the total costs of these projects, leaving the remaining 80% unfunded. Awards and Acknowledgements The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the city for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. This was the 24th consecutive year that the city has achieved this prestigious award. To be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The city strives to annually produce an Annual Comprehensive Financial Report which will continue to meet the Certificate of Achievement Program’s requirements. This report will be also submitted to GFOA to determine eligibility for another certificate. This report has been a comprehensive effort by many people from many different areas of responsibility. It could not have been accomplished without their help and the dedicated efforts of all of the finance staff, especially Roxanne Muhlmeister, Assistant Finance Director and Kim Riboni, Senior Accountant. I also appreciate the staff of Lance, Soll & Lunghard, LLP for the professional way in which the audit of this financial report was conducted. It has been a pleasure to work with them. Additionally, I would like to thank the City Council, the City Manager and the city’s Executive Management Team for their leadership and unfailing support in maintaining the highest standards of professionalism in the management of the city’s finances. Respectfully submitted, Zach Korach Finance Director 6,600,000$ 2,243,000 6,905,600 14,109,600 26,100,000 Business Park Recreational Facility (partially funded) Cannon Lake Park (6.7 acres) Carlsbad Blvd. Mountain View to Northerly City Limits (partially funded) Carlsbad Blvd. and Palomar Airport Road (partially funded) Carlsbad Blvd. Realignment (segments 3-5) College Boulevard Extension 30,000,000 Total Unfunded Projects 85,958,200$ xixApril 4, 2023 Item #5 Page 28 of 195 rdLJ_ xxApril 4, 2023 Item #5 Page 29 of 195 ' * ' . ,§ ' ~ ~ ~ ~ ~ · 0-< ; ; - ~ ~e . c:. ~ e. \' 7 \ \ \ \ S 'Q ? > C l , xxiApril 4, 2023 Item #5 Page 30 of 195 • Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Carlsbad California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO xxiiApril 4, 2023 Item #5 Page 31 of 195 I I I .., As of 2/22/2023 Elected Officials Keith Blackburn, Mayor Melanie Burkholder, Council Member – District 1 Carolyn Luna, Council Member – District 2 Priya Bhat-Patel, Mayor Pro Tem – District 3 Teresa Acosta, Council Member – District 4 Sherry Freisinger, City Clerk Craig Lindholm, City Treasurer Leadership Team Scott Chadwick, City Manager Cindie McMahon, City Attorney Geoff Patnoe, Assistant City Manager Gary Barberio, Deputy City Manager, Community Services Paz Gomez, Deputy City Manager, Public Works Laura Rocha, Deputy City Manager, Administrative Services Michael Calderwood, Chief, Fire Department Maria Callander, Director, Information Technology Sheila Cobian, Director, Legislative and Constituent Services Tom Frank, Director, Public Works Transportation Morgen Fry, Management Analyst, Office of the City Manager David Graham, Chief Innovation Officer, Innovation & Economic Development Jason Haber, Director, Intergovernmental Affairs Zach Korach, Director, Finance Kyle Lancaster, Director, Parks & Recreation John Maashoff, Public Works Manager, Public Works Fleet & Facilities Faviola Medina, City Clerk Services Manager, Office of the City Clerk Mandy Mills, Director, Housing & Homeless Services Jeff Murphy, Director, Community Development Vicki Quiram, Director, Public Works Utilities Kristina Ray, Director, Communication & Engagement Suzanne Smithson, Director, Library & Cultural Arts Baq Taj, Engineering Manager, Public Works Construction Mgmt. & Inspections Judy Von Kalinowski, Director, Human Resources Mickey Williams, Chief, Police Department James Wood, Director, Public Works Environmental Sustainability Boards and Commissions Chairs Agricultural Mitigation Fee Committee – Peter Merz Arts Commission – Barbara Chung Beach Preservation Commission – Kathleen Steindlberger Carlsbad Golf Lodging Business Improvement District Board – Bill Canepa Carlsbad Tourism Business Improvement District Board – Bill Canepa Community Development Block Grant Committee Growth Management Citizens Committee Historic Preservation Commission – Chad Majer Housing Commission – John Nguyen-Cleary Library Board of Trustees – Sherman DeForest Parks & Recreation Commission – Michael Luna Planning Commission – Peter Merz Senior Commission – Kathryn Rangus Traffic & Mobility Commission – Josh Coelho Village & Barrio Design Review Committee xxiiiApril 4, 2023 Item #5 Page 32 of 195 xx i v Ap r i l 4 , 2 0 2 3 It e m # 5 P a g e 3 3 o f 1 9 5 Office of the Oty Clerk Faviola Medina Police Department Mickey V\lilli.ims August 1, 2022 Communication & Engagement Kristina Ray Intergovernmental Affairs Jason Haber legislative & Constituent Services Sheila Cobian Assistant Oty Manager Geoff Patnoe Information Technology f\•laria Callander lnnouatlon & Economic Development David Graham City Attorney Cindie McMahon (City of Carlsbad Fire Department Michael Calderwood ()RXUWK6WUHHW6XLWH 6DQWD$QD&$ 1%UHD%OYG6XLWH %UHD&$ :DWHUZD\$YHQXH6XLWH 7KH:RRGODQGV7; 5LYHU3OD]D'U6XLWH 6DFUDPHQWR&$ $YHQLGDGHOD&DUORWDௗ6XLWH 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ǁŚĞŶĐĂƐŚŝƐƌĞĐĞŝǀĞĚŽƌƉĂŝĚ͘ dŚĞƚǁŽ'ŽǀĞƌŶŵĞŶƚͲǁŝĚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐƌĞƉŽƌƚƚŚĞĐŝƚǇ͛ƐŶĞƚƉŽƐŝƚŝŽŶĂŶĚŚŽǁŝƚŚĂƐĐŚĂŶŐĞĚ͘EĞƚƉŽƐŝƚŝŽŶʹƚŚĞ ĚŝĨĨĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞĐŝƚǇ͛ƐĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐʹŝƐŽŶĞǁĂǇƚŽŵĞĂƐƵƌĞƚŚĞĐŝƚǇ͛ƐĨŝŶĂŶĐŝĂůŚĞĂůƚŚ͕ŽƌƉŽƐŝƚŝŽŶ͘KǀĞƌ ƚŝŵĞ͕ŝŶĐƌĞĂƐĞƐŽƌĚĞĐƌĞĂƐĞƐŝŶƚŚĞĐŝƚǇ͛ƐŶĞƚƉŽƐŝƚŝŽŶĂƌĞĂŶŝŶĚŝĐĂƚŽƌŽĨǁŚĞƚŚĞƌƚŚĞĐŝƚǇ͛ƐĨŝŶĂŶĐŝĂůŚĞĂůƚŚŝƐŝŵƉƌŽǀŝŶŐ ŽƌĚĞƚĞƌŝŽƌĂƚŝŶŐ͕ƌĞƐƉĞĐƚŝǀĞůǇ͘ĚĚŝƚŝŽŶĂůŶŽŶͲĨŝŶĂŶĐŝĂůĨĂĐƚŽƌƐƐŚŽƵůĚďĞĐŽŶƐŝĚĞƌĞĚ͕ƐƵĐŚĂƐĐŚĂŶŐĞƐŝŶƚŚĞĐŝƚǇ͛Ɛ ƉƌŽƉĞƌƚǇƚĂǆďĂƐĞĂŶĚƚŚĞĐŽŶĚŝƚŝŽŶŽĨƚŚĞĐŝƚǇ͛ƐŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ƚŽĂƐƐĞƐƐƚŚĞŽǀĞƌĂůůŚĞĂůƚŚŽĨƚŚĞĐŝƚǇ͘ 5April 4, 2023 Item #5 Page 38 of 195 ( City of Carlsbad dŚĞ'ŽǀĞƌŶŵĞŶƚͲǁŝĚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐŽĨƚŚĞĐŝƚǇĂƌĞĚŝǀŝĚĞĚŝŶƚŽƚǁŽĐĂƚĞŐŽƌŝĞƐ͗ x'ŽǀĞƌŶŵĞŶƚĂůĂĐƚŝǀŝƚŝĞƐʹDŽƐƚŽĨƚŚĞĐŝƚǇ͛ƐďĂƐŝĐƐĞƌǀŝĐĞƐ͕ƐƵĐŚĂƐƉŽůŝĐĞ͕ĨŝƌĞ͕ƉƵďůŝĐǁŽƌŬƐ͕ĐŽŵŵƵŶŝƚǇƐĞƌǀŝĐĞƐ͕ ĂŶĚŝŶƚĞƌŶĂůƐĞƌǀŝĐĞƐĂƌĞŝŶĐůƵĚĞĚŚĞƌĞ͘dĂǆĞƐ͕ƌĞǀĞŶƵĞƐĨƌŽŵŽƚŚĞƌŐŽǀĞƌŶŵĞŶƚƐĂŶĚĂŐĞŶĐŝĞƐ͕ŝŶĐŽŵĞĨƌŽŵ ƉƌŽƉĞƌƚǇĂŶĚŝŶǀĞƐƚŵĞŶƚƐ͕ŐƌĂŶƚƐĂŶĚĐŽŶƚƌŝďƵƚŝŽŶƐ͕ĂŶĚĐŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐĨŝŶĂŶĐĞŵŽƐƚŽĨƚŚĞƐĞĂĐƚŝǀŝƚŝĞƐ͘ xƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐʹdŚĞĐŝƚǇĐŚĂƌŐĞƐĨĞĞƐƚŽ 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Financial Report Management's Discussion and Analysis Government- wide Financial Statements Summary Basic Financial Statements Fund Financial Statements Required Supplementary Information Notes to the Financial Statements Detail &ŝŶĂŶĐŝĂůŶĂůǇƐŝƐŽĨƚŚĞŝƚǇĂƐĂtŚŽůĞ EĞƚWŽƐŝƚŝŽŶ dŚĞĐŝƚǇ͛ƐĐŽŵďŝŶĞĚŶĞƚƉŽƐŝƚŝŽŶĂƐŽĨ:ƵŶĞϯϬ͕ϮϬϮϮ͕ĂƐƐŚŽǁŶďĞůŽǁ͕ǁĂƐΨϭ͘ϴϳďŝůůŝŽŶ͘dŚĞĐŝƚǇ͛ƐŶĞƚƉŽƐŝƚŝŽŶŝŶĐƌĞĂƐĞĚ ďǇΨϲ͘ϲŵŝůůŝŽŶĂƐĐŽŵƉĂƌĞĚƚŽƚŚĞƉƌŝŽƌĨŝƐĐĂůǇĞĂƌ͘dŚŝƐŝŶĐƌĞĂƐĞǁĂƐŚĞĂǀŝůǇŝŵƉĂĐƚĞĚďǇƌĞǀĞŶƵĞƐĞǆĐĞĞĚŝŶŐĞǆƉĞŶƐĞƐ ĨŽƌƚŚĞǇĞĂƌ͕ĂŶΨϭϯ͘ϮŵŝůůŝŽŶŝŶĐƌĞĂƐĞŝŶĐĂƉŝƚĂůĂƐƐĞƚƐ͕ĂŶĚĂƐƵďƐƚĂŶƚŝĂůƌĞĚƵĐƚŝŽŶŶĞƚƉĞŶƐŝŽŶůŝĂďŝůŝƚǇƚŚĂƚǁĂƐŽĨĨƐĞƚ ǁŝƚŚĂŶŝŶĐƌĞĂƐĞŝŶĚĞĨĞƌƌĞĚŝŶĨůŽǁƐƌĞůĂƚĞĚƚŽƉĞŶƐŝŽŶ͘dŚĞŝŶĐƌĞĂƐĞŝŶĐĂƉŝƚĂůĂƐƐĞƚƐŝƐĚŝƐĐƵƐƐĞĚŝŶŵŽƌĞĚĞƚĂŝůŝŶƚŚĞ ĐĂƉŝƚĂůĂƐƐĞƚƐĞĐƚŝŽŶŽĨƚŚŝƐDΘ͘ ƐŶŽƚĞĚĞĂƌůŝĞƌ͕ŽǀĞƌƚŝŵĞ͕ŶĞƚƉŽƐŝƚŝŽŶŵĂǇƐĞƌǀĞĂƐĂƵƐĞĨƵůŝŶĚŝĐĂƚŽƌŽĨƚŚĞĐŝƚǇ͛ƐĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶ͘&ŽƌƚŚĞĐŝƚǇ͕ĂƐƐĞƚƐ ĂŶĚĚĞĨĞƌƌĞĚŽƵƚĨůŽǁƐŽĨƌĞƐŽƵƌĐĞƐĐƵƌƌĞŶƚůǇĞǆĐĞĞĚůŝĂďŝůŝƚŝĞƐĂŶĚĚĞĨĞƌƌĞĚŝŶĨůŽǁƐŽĨƌĞƐŽƵƌĐĞƐďǇΨϭ͘ϴϳďŝůůŝŽŶĂƚƚŚĞ ĐůŽƐĞŽĨƚŚĞĨŝƐĐĂůǇĞĂƌ͘ 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of 195 ( City of Carlsbad dŚĞƌĞŵĂŝŶŝŶŐŶĞƚƉŽƐŝƚŝŽŶŝƐƵŶƌĞƐƚƌŝĐƚĞĚ͕ŵĞĂŶŝŶŐŝƚĐĂŶďĞƵƐĞĚĨŽƌĨƵƚƵƌĞƐƉĞŶĚŝŶŐĂŶĚůĂƌŐĞůǇĐŽŝŶĐŝĚĞĚǁŝƚŚƚŚĞ ĚĞĐƌĞĂƐĞŝŶŶĞƚƉĞŶƐŝŽŶůŝĂďŝůŝƚǇŽĨĨƐĞƚǁŝƚŚĂŶŝŶĐƌĞĂƐĞŝŶĚĞĨĞƌƌĞĚŝŶĨůŽǁƐŽĨƌĞƐŽƵƌĐĞƐƌĞůĂƚĞĚƚŽƉĞŶƐŝŽŶ͘EŽƚĂďůǇ͕ƚŚĞ ƵŶƌĞƐƚƌŝĐƚĞĚŶĞƚƉŽƐŝƚŝŽŶŽĨŐŽǀĞƌŶŵĞŶƚĂůĂĐƚŝǀŝƚŝĞƐŝŶĐƌĞĂƐĞĚ͕ůĂƌŐĞůǇĚƵĞƚŽĨůƵĐƚƵĂƚŝŽŶƐǁŝƚŚƉĞŶƐŝŽŶĂĐƚŝǀŝƚŝĞƐĂŶĚƚŚĞ ďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐďĂůĂŶĐĞŝŶĐƌĞĂƐĞĚƐůŝŐŚƚůǇǁŝƚŚƌĞůĂƚŝǀĞůǇŵŝŶŝŵĂůĐŚĂŶŐĞŽǀĞƌƚŚĞƉƌĞǀŝŽƵƐĨŝƐĐĂůǇĞĂƌ͘ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ dŚĞĐŽŶĚĞŶƐĞĚƐƵŵŵĂƌǇŽĨĂĐƚŝǀŝƚŝĞƐďĞůŽǁƐŚŽǁƐƚŚĂƚŶĞƚƉŽƐŝƚŝŽŶŝŶĐƌĞĂƐĞĚďǇΨϲ͘ϲŵŝůůŝŽŶĚƵƌŝŶŐƚŚĞǇĞĂƌ͘dŚŝƐ ŝŶĐƌĞĂƐĞŽĐĐƵƌƐǁŚĞŶƌĞǀĞŶƵĞƐĞĂƌŶĞĚĂƌĞŐƌĞĂƚĞƌƚŚĂŶĞǆƉĞŶƐĞƐŝŶĐƵƌƌĞĚ͘ dŽƚĂů WĞƌĐĞŶƚĂŐĞ ŚĂŶŐĞ ϮϬϮϭ ϮϬϮϮ ϮϬϮϭ ϮϬϮϮ ϮϬϮϭ ϮϬϮϮ ϮϬϮϭͲϮϮ ZĞǀĞŶƵĞƐ WƌŽŐƌĂŵƌĞǀĞŶƵĞƐ ŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐ ΨϮϬ͘Ϭ Ψϭϵ͘ϰ Ψϳϱ͘Ϯ Ψϳϵ͘ϲ Ψϵϱ͘Ϯ Ψϵϵ͘Ϭ ϰ͘Ϭй KƉĞƌĂƚŝŶŐŐƌĂŶƚƐĂŶĚĐŽŶƚƌŝďƵƚŝŽŶƐ Ϯϲ͘ϱ ϮϬ͘ϰϯ͘ϱ Ϭ͘ϮϯϬ͘ϬϮϬ͘ϲ Ͳϯϭ͘ϰй ĂƉŝƚĂůŐƌĂŶƚƐĂŶĚĐŽŶƚƌŝďƵƚŝŽŶƐ ϵ͘ϲϵ͘ϵϳ͘ϲ Ϭ͘ϵϭϳ͘ϮϭϬ͘ϴ Ͳϯϳ͘ϱй 'ĞŶĞƌĂůƌĞǀĞŶƵĞƐ WƌŽƉĞƌƚǇƚĂǆĞƐ ϳϴ͘Ϯϴϭ͘Ϭϰ͘ϱ ϰ͘ϳϴϮ͘ϳϴϱ͘ϳ ϯ͘ϲй ^ĂůĞƐĂŶĚƵƐĞƚĂǆĞƐ ϰϮ͘ϲϱϭ͘ϮͲ ͲϰϮ͘ϲϱϭ͘Ϯ ϮϬ͘Ϯй KƚŚĞƌƚĂǆĞƐ Ϯϴ͘ϴϰϳ͘ϲͲ Ϯ͘ϯϮϴ͘ϴϰϵ͘ϵ ϳϯ͘ϭй /ŶĐŽŵĞĨƌŽŵƉƌŽƉĞƌƚǇĂŶĚŝŶǀĞƐƚŵĞŶƚƐ ϱ͘ϭ ;ϮϮ͘ϭͿϬ͘ϲ ;ϳ͘ϳͿϱ͘ϳ ;Ϯϵ͘ϴͿ ͲϲϮϮ͘ϴй KƚŚĞƌ Ϭ͘ϱϭ͘ϯͲ ͲϬ͘ϱϭ͘ϯ ϭϲϬ͘Ϭй dŽƚĂůƌĞǀĞŶƵĞƐ Ϯϭϭ͘ϯϮϬϴ͘ϳϵϭ͘ϰ ϳϵ͘ϵϯϬϮ͘ϳϮϴϴ͘ϲͲϰ͘ϳй ǆƉĞŶƐĞƐ 'ĞŶĞƌĂůŐŽǀĞƌŶŵĞŶƚ ϮϬ͘Ϭϭϰ͘ϴͲ ͲϮϬ͘Ϭϭϰ͘ϴ ͲϮϲ͘Ϭй WƵďůŝĐƐĂĨĞƚǇ ϴϬ͘ϯϴϭ͘ϭͲ ͲϴϬ͘ϯϴϭ͘ϭ ϭ͘Ϭй ŽŵŵƵŶŝƚǇƐĞƌǀŝĐĞƐ ϱϳ͘ϳϱϵ͘ϬͲ Ͳϱϳ͘ϳϱϵ͘Ϭ Ϯ͘ϯй WƵďůŝĐǁŽƌŬƐ ϯϱ͘ϱϯϵ͘ϮͲ Ͳϯϱ͘ϱϯϵ͘Ϯ ϭϬ͘ϰй ĂƌůƐďĂĚDƵŶŝĐŝƉĂůtĂƚĞƌŝƐƚƌŝĐƚ ͲͲϱϲ͘ϯ ϱϯ͘ϲϱϲ͘ϯϱϯ͘ϲ Ͳϰ͘ϴй 'ŽůĨĐŽƵƌƐĞ ͲͲϭϬ͘ϯ ϭϭ͘ϳϭϬ͘ϯϭϭ͘ϳ ϭϯ͘ϲй tĂƐƚĞǁĂƚĞƌ ͲͲϵ͘Ϭ ϭϳ͘ϵϵ͘Ϭϭϳ͘ϵ ϵϴ͘ϵй ^ŽůŝĚǁĂƐƚĞ ͲͲϱ͘ϭ ϰ͘ϳϱ͘ϭϰ͘ϳ Ͳϳ͘ϴй dŽƚĂůĞǆƉĞŶƐĞƐ ϭϵϯ͘ϱϭϵϰ͘ϭϴϬ͘ϳ ϴϳ͘ϵϮϳϰ͘ϮϮϴϮ͘ϬϮ͘ϴй ǆĐĞƐƐ;ĚĞĨŝĐŝĞŶĐǇͿďĞĨŽƌĞƚƌĂŶƐĨĞƌƐ ϭϳ͘ϴϭϰ͘ϲϭϬ͘ϳ ;ϴ͘ϬͿϮϴ͘ϱϲ͘ϲ Ͳϳϲ͘ϵй ^ƉĞĐŝĂůŝƚĞŵƐͲ'ŽůĨŽƵƌƐĞĚĞďƚ ;ϴ͘ϰͿͲϴ͘ϰ ͲͲͲ Ϭ͘Ϭй dƌĂŶƐĨĞƌƐ ;ϰϳ͘ϯͿ;ϭ͘ϯͿϰϳ͘ϯϭ͘ϯͲͲ Ϭ͘Ϭй /ŶĐƌĞĂƐĞ;ĚĞĐƌĞĂƐĞͿŝŶŶĞƚƉŽƐŝƚŝŽŶ ;ϯϳ͘ϵͿϭϯ͘ϯϲϲ͘ϰ ;ϲ͘ϳͿϮϴ͘ϱϲ͘ϲͲϳϲ͘ϵй ĞŐŝŶŶŝŶŐƉŽƐŝƚŝŽŶ ϭ͕ϯϰϲ͘Ϭϭ͕ϯϬϴ͘ϭϰϴϲ͘ϱ ϱϱϮ͘ϵϭ͕ϴϯϮ͘ϱϭ͕ϴϲϭ͘Ϭϭ͘ϲй ŶĚŝŶŐŶĞƚƉŽƐŝƚŝŽŶ Ψϭ͕ϯϬϴ͘ϭ Ψϭ͕ϯϮϭ͘ϰ ΨϱϱϮ͘ϵ Ψϱϰϲ͘Ϯ Ψϭ͕ϴϲϭ͘Ϭ Ψϭ͕ϴϲϳ͘ϲ Ϭ͘ϰй ĐƚŝǀŝƚŝĞƐ ĐƚŝǀŝƚŝĞƐ dŽƚĂů /dzK&Z>^Ζ^,E'^/EEdWK^/d/KE ;ŝŶŵŝůůŝŽŶƐŽĨĚŽůůĂƌƐͿ 'ŽǀĞƌŶŵĞŶƚĂů ƵƐŝŶĞƐƐͲdǇƉĞ 8April 4, 2023 Item #5 Page 41 of 195 ( City of Carlsbad dŚĞƌĞǁĞƌĞƐĞǀĞƌĂůƌĞĂƐŽŶƐĨŽƌƚŚĞŝŶĐƌĞĂƐĞŝŶŶĞƚƉŽƐŝƚŝŽŶ͗ x/ŶƚĞƌŐŽǀĞƌŶŵĞŶƚĂůƌĞǀĞŶƵĞƐƌĞĐĞŝǀĞĚĨƌŽŵKs/ͲϭϵƌĞůĂƚĞĚƉƌŽŐƌĂŵƐƐƵĐŚĂƐƚŚĞŵĞƌŝĐĂŶZĞƐĐƵĞWůĂŶĐƚ xĐĐĞůĞƌĂƚĞĚƌĞĐŽǀĞƌǇĨƌŽŵƚŚĞĂĚǀĞƌƐĞĨŝƐĐĂůŝŵƉĂĐƚƐŽĨKs/Ͳϭϵ͕ƐƉĞĐŝĨŝĐĂůůǇǁŝƚŚƐĂůĞƐƚĂǆĂŶĚƚƌĂŶƐŝĞŶƚ ŽĐĐƵƉĂŶĐǇƚĂǆ x&ŝƐĐĂůĚŝƐĐŝƉůŝŶĞŝŵƉůĞŵĞŶƚĞĚďǇƚŚĞĐŝƚǇĚƵĞƚŽƵŶĐĞƌƚĂŝŶƚǇƐƵƌƌŽƵŶĚŝŶŐKs/ͲϭϵƌĞƐƚƌŝĐƚŝŽŶƐĂŶĚƚŚĞĞĐŽŶŽŵǇ ƌĞƐƵůƚĞĚŝŶďƵĚŐĞƚĂƌǇƐĂǀŝŶŐƐ xdŚĞƐĞƌĞƐƵůƚŝŶŐŝŶĐƌĞĂƐĞƐǁĞƌĞƐŝŐŶŝĨŝĐĂŶƚůǇŽĨĨƐĞƚďǇŝŶǀĞƐƚŵĞŶƚůŽƐƐĞƐ;ĨĂŝƌŵĂƌŬĞƚǀĂůƵĞĂĚũƵƐƚŵĞŶƚƐͿĚƵĞƚŽ ƌŝƐŝŶŐŝŶĨůĂƚŝŽŶĂŶĚĐŽƌƌĞƐƉŽŶĚŝŶŐƐƉŝŬĞƐŝŶŝŶƚĞƌĞƐƚƌĂƚĞƐƚŚƌŽƵŐŚŽƵƚƚŚĞĨŝƐĐĂůǇĞĂƌ ƉƉƌŽǆŝŵĂƚĞůǇ ϴϲй ŽĨ ƚŚĞ ƌĞǀĞŶƵĞƐ ŽĨ ƚŚĞ ĐŝƚǇ͛Ɛ ŐŽǀĞƌŶŵĞŶƚĂů ĂĐƚŝǀŝƚŝĞƐ ĂƌĞ ŐĞŶĞƌĂƚĞĚ ƚŚƌŽƵŐŚ ƚĂǆĞƐ ĐŽůůĞĐƚĞĚ ;ŝ͘Ğ͕͘ƉƌŽƉĞƌƚǇƚĂǆ͕ƐĂůĞƐƚĂǆ͕ƚƌĂŶƐŝĞŶƚŽĐĐƵƉĂŶĐǇƚĂǆ͕ĞƚĐ͘Ϳ͕ĂŶĚĂƉƉƌŽǆŝŵĂƚĞůǇϵϵйŽĨƚŚĞĐŝƚǇ͛ƐďƵƐŝŶĞƐƐͲƚǇƉĞƌĞǀĞŶƵĞŝƐ ŐĞŶĞƌĂƚĞĚƚŚƌŽƵŐŚĐŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐ͘dŚĞĐŚĂƌƚďĞůŽǁŐƌĂƉŚŝĐĂůůǇĚĞƉŝĐƚƐƚŚĞĐŝƚǇ͛ƐƌĞǀĞŶƵĞƐŽƵƌĐĞƐ͘ tŚŝůĞƚŚĞĐŝƚǇ͛ƐƌĞǀĞŶƵĞƐ͕ƉĂƌƚŝĐƵůĂƌůǇƚƌĂŶƐŝĞŶƚŽĐĐƵƉĂŶĐǇƚĂǆ͕ƐĂůĞƐƚĂǆĂŶĚƌĞĐƌĞĂƚŝŽŶƌĞůĂƚĞĚƌĞǀĞŶƵĞƐ͕ǁĞƌĞƉƌŽũĞĐƚĞĚ ƚŽƌĞĐŽǀĞƌĐŽŵƉĂƌĞĚƚŽĨŝƐĐĂůǇĞĂƌϮϬϮϬͲϮϭ͕ƚŚĞǇǁĞƌĞƐƚŝůůƉƌŽũĞĐƚĞĚƚŽďĞƐŝŐŶŝĨŝĐĂŶƚůǇŝŵƉĂĐƚĞĚďǇKs/ͲϭϵƌĞůĂƚĞĚ ƌĞƐƚƌŝĐƚŝŽŶƐ͘ƵĞƚŽƉĞŶƚͲƵƉĚĞŵĂŶĚĂŶĚƚŚĞĞĂƐŝŶŐŽĨƌĞƐƚƌŝĐƚŝŽŶƐƌĞůĂƚĞĚƚŽKs/Ͳϭϵ͕ƚŚĞĨŝƐĐĂůƌĞĐŽǀĞƌǇǁĂƐ ĂĐĐĞůĞƌĂƚĞĚ͕ĂŶĚƚŚĞĐŝƚǇĞǆƉĞƌŝĞŶĐĞĚŚŝƐƚŽƌŝĐĂůůǇŚŝŐŚůĞǀĞůƐŽĨƌĞǀĞŶƵĞƐ͕ŶŽƚĂďůǇĨŽƌƐĂůĞƐĂŶĚƚƌĂŶƐŝĞŶƚŽĐĐƵƉĂŶĐǇƚĂǆ͘ ^ĂůĞƐƚĂǆĞŶĚĞĚƚŚĞĨŝƐĐĂůǇĞĂƌǁŝƚŚΨϱϭ͘ϮŵŝůůŝŽŶĂŶĚƚŚĞǇĞĂƌͲŽǀĞƌͲǇĞĂƌŝŶĐƌĞĂƐĞŽĨΨϴ͘ϲŵŝůůŝŽŶŽƌϮϬ͘ϮйǁĂƐĚƌŝǀĞŶďǇ ƚŚĞĐŝƚǇ͛ƐƚƌĂŶƐƉŽƌƚĂƚŝŽŶ͕ƌĞƚĂŝů͕ĂŶĚƌĞƐƚĂƵƌĂŶƚŝŶĚƵƐƚƌǇŐƌŽƵƉƐ͘dƌĂŶƐŝĞŶƚŽĐĐƵƉĂŶĐǇƚĂǆĞŶĚĞĚƚŚĞĨŝƐĐĂůǇĞĂƌǁŝƚŚ ΨϯϮ͘ϰŵŝůůŝŽŶ͕ĂŶŝŶĐƌĞĂƐĞŽĨΨϭϲ͘ϴŵŝůůŝŽŶŽƌϭϬϳй͕ĂŶĚǁĂƐĚƌŝǀĞŶďǇĂĐŽŵďŝŶĂƚŝŽŶŽĨƉĞŶƚͲƵƉĚĞŵĂŶĚ͕ĞĂƐŝŶŐŽĨ Ks/ͲϭϵƌĞƐƚƌŝĐƚŝŽŶƐ͕ĂŶĚĂŶŝŶĐƌĞĂƐĞŝŶĂǀĞƌĂŐĞĚĂŝůǇƌŽŽŵƌĂƚĞƐ͘ dŚĞĐŝƚǇ͛ƐůĂƌŐĞƐƚƌĞǀĞŶƵĞƐŽƵƌĐĞ͕ƉƌŽƉĞƌƚǇƚĂǆĞƐ͕ŝŶĐƌĞĂƐĞĚĚƵĞƚŽĂƐƐĞƐƐĞĚǀĂůƵĞƐŝŶĐƌĞĂƐŝŶŐŝŶƚŽƚĂůĨŽƌĂůůĐŽŵƉŽŶĞŶƚƐ͗ ƌĞƐŝĚĞŶƚŝĂů͕ĐŽŵŵĞƌĐŝĂůĂŶĚŝŶĚƵƐƚƌŝĂůƉƌŽƉĞƌƚŝĞƐ͘dŚŝƐǁĂƐƚŚĞƐĞǀĞŶƚŚǇĞĂƌŝŶĂƌŽǁƚŚĂƚƚŚĞĐŝƚǇŚĂĚŐƌŽǁƚŚŝŶĂůůƚŚƌĞĞ ĂƐƐĞƐƐĞĚǀĂůƵĞĐŽŵƉŽŶĞŶƚƐ͘,ŽǁĞǀĞƌ͕ĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮǁĂƐƚŚĞĨŝƌƐƚƚŝŵĞƐŝŶĐĞĨŝƐĐĂůǇĞĂƌϮϬϭϲͲϭϳƚŚĂƚƚŚĞŵĂǆŝŵƵŵ ŝŶĐƌĞĂƐĞŽĨĂƐƐĞƐƐĞĚǀĂůƵĞƐ͕ǁŚŝĐŚǁĂƐϭ͘Ϭϯϲй͕ĨĞůůďĞůŽǁƚŚĞϮйĐĂƉ͘ dŚĞĐŝƚǇĞǆƉĞƌŝĞŶĐĞĚĂŶŝŶĐƌĞĂƐĞŝŶďƵƐŝŶĞƐƐůŝĐĞŶƐĞƌĞǀĞŶƵĞĚƌŝǀĞŶďǇĂŶŝŶĐƌĞĂƐĞŝŶůĂƚĞͲƉĂǇŵĞŶƚƉĞŶĂůƚŝĞƐƚŚĂƚƌĞƐƵůƚĞĚ ĨƌŽŵKs/ͲϭϵĂŶĚŝƚƐŝŵƉĂĐƚƐŽŶďƵƐŝŶĞƐƐĞƐ͘ĞǀĞůŽƉŵĞŶƚƌĞŵĂŝŶĞĚƌĞůĂƚŝǀĞůǇƐƚƌŽŶŐĨŽƌƚŚĞǇĞĂƌĂŶĚŝŶĐƌĞĂƐĞĚ ŵĂƌŬĞĚůǇĐŽŵƉĂƌĞĚƚŽƚŚĞƉƌĞǀŝŽƵƐĨŝƐĐĂůǇĞĂƌ͘dŚĞƌĞǁĂƐǀĞƌǇůŝƚƚůĞĐŽŵŵĞƌĐŝĂůĂŶĚŝŶĚƵƐƚƌŝĂůĚĞǀĞůŽƉŵĞŶƚĚƵƌŝŶŐƚŚĞ ǇĞĂƌ͕ƐŝŵŝůĂƌƚŽƚŚĞƉƌŝŽƌĨŝƐĐĂůǇĞĂƌ͘ 9April 4, 2023 Item #5 Page 42 of 195 ('city of Carlsbad Sources of Revenue for Fiscal Year 2021-22 $288.6 Million • Charges f0< Services 3596 ■ Property Tax 3196 Sales Tax 1896 ■ Federal and State Aid 896 ■ Contributions fr0<n Property Owners 196 Transient Occupancy Tax 1156 Other Taxes and Revenues -496 /ŶĐŽŵĞĨƌŽŵƉƌŽƉĞƌƚǇĂŶĚŝŶǀĞƐƚŵĞŶƚƐǁĞƌĞŚĞĂǀŝůǇŝŵƉĂĐƚĞĚďǇƵŶƌĞĂůŝǌĞĚůŽƐƐĞƐĐƌĞĂƚĞĚďǇĂĚũƵƐƚŝŶŐƚŚĞĐŝƚǇ͛Ɛ ŝŶǀĞƐƚŵĞŶƚƐƚŽƚŚĞŝƌĨĂŝƌŵĂƌŬĞƚǀĂůƵĞĂƚ:ƵŶĞϯϬ͕ϮϬϮϮ͘ZŝƐŝŶŐŝŶĨůĂƚŝŽŶƚŚƌŽƵŐŚŽƵƚƚŚĞĨŝƐĐĂůǇĞĂƌƚƌŝŐŐĞƌĞĚŝŶƚĞƌĞƐƚƌĂƚĞ ŚŝŬĞƐĨƌŽŵƚŚĞ&ĞĚĞƌĂůZĞƐĞƌǀĞǁŚŝĐŚŚĂĚĂƐƵďƐƚĂŶƚŝĂůŝŵƉĂĐƚŽŶƚŚĞŵĂƌŬĞƚǀĂůƵĞŽĨƚŚĞĐŝƚǇ͛ƐƉŽƌƚĨŽůŝŽ͖ŚŽǁĞǀĞƌ͕ǁŝƚŚ ƌŝƐŝŶŐƌĂƚĞƐ͕ƚŚĞĐŝƚǇ͛ƐƉŽƌƚĨŽůŝŽďĞŐĂŶƚŽƐĞĞĐŽŶƚŝŶƵĞĚŝŶĐƌĞĂƐĞƐŝŶŝƚƐŵŽŶƚŚůǇǇŝĞůĚ͘ dŚĞƉƌŝŵĂƌǇĐŽŶƚƌŝďƵƚŽƌƐƚŽƚŚĞĐŝƚǇ͛ƐĐŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐĂƌĞǁĂƚĞƌĂŶĚǁĂƐƚĞǁĂƚĞƌĐƵƐƚŽŵĞƌƐ͘ƐůŝŐŚƚĚĞĐƌĞĂƐĞŝŶƚŽƚĂů ǁĂƚĞƌƌĞǀĞŶƵĞƐǁĂƐĚƌŝǀĞŶƉƌŝŵĂƌŝůǇďǇƌĂƚĞŝŶĐƌĞĂƐĞƐŝŵƉůĞŵĞŶƚĞĚŝŶ:ĂŶƵĂƌǇϮϬϮϭƚŚĂƚǁĞƌĞŽĨĨƐĞƚďǇĂƐůŝŐŚƚƌĞĚƵĐƚŝŽŶ ǀŽůƵŵĞ͘tĂƐƚĞǁĂƚĞƌĐŚĂƌŐĞƐŝŶĐƌĞĂƐĞĚĚƵĞƚŽƌĂƚĞŝŶĐƌĞĂƐĞƐĂŶĚĚĞǀĞůŽƉŵĞŶƚƚŚƌŽƵŐŚŽƵƚƚŚĞĐŝƚǇ͘dŽŐĞƚŚĞƌ͕ƚŚĞƐĞ ĨĂĐƚŽƌƐůĞĚƚŽĂŶŽǀĞƌĂůůŝŶĐƌĞĂƐĞŝŶĐŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐĨŽƌƚŚĞǇĞĂƌĨŽƌďŽƚŚǁĂƚĞƌĂŶĚǁĂƐƚĞǁĂƚĞƌ͘ĚĚŝƚŝŽŶĂůůǇ͕ƚŚĞ ĐŝƚǇ͛ƐŵƵŶŝĐŝƉĂůŐŽůĨĐŽƵƌƐĞĞǆƉĞƌŝĞŶĐĞĚĂŶŝŶĐƌĞĂƐĞŝŶĐŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐĚƵĞƚŽŚŝŐŚĞƌĚĞŵĂŶĚĨŽƌĂůůŽǁĂďůĞƌĞĐƌĞĂƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐĚƵƌŝŶŐƚŚĞƐŚƵƚĚŽǁŶ͘ dŚĞƚŽƚĂůĐŽƐƚŽĨĂůůƉƌŽŐƌĂŵƐĂŶĚƐĞƌǀŝĐĞƐǁĂƐΨϮϴϮ͘ϬŵŝůůŝŽŶŝŶĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮǁŚŝĐŚǁĂƐŵŽĚĞƌĂƚĞůǇŚŝŐŚĞƌ;Ϯ͘ϴйͿ ƚŚĂŶƉƌŝŽƌĨŝƐĐĂůǇĞĂƌĐŽƐƚƐŽĨΨϮϳϰ͘ϮŵŝůůŝŽŶ͘dŚĞŵĂũŽƌŝƚǇŽĨƚŚĞŝŶĐƌĞĂƐĞŝŶƉƌŽŐƌĂŵĐŽƐƚƐĐĂŵĞĨƌŽŵŶĞŐŽƚŝĂƚĞĚĂŶĚ ĐŽŶƚƌĂĐƚƵĂůƐĂůĂƌǇĂŶĚďĞŶĞĨŝƚĐŽƐƚŝŶĐƌĞĂƐĞƐ͘/ŶĐƌĞĂƐĞƐǁĞƌĞĂůƐŽĚƌŝǀĞŶďǇĂƌĞƚƵƌŶŽĨƚƌĂǀĞůĂŶĚƚƌĂŝŶŝŶŐĐŽƐƚƐ͕ƚŚĞ ƌĞƐƵŵŝŶŐŽĨŶĞǁƉƌŽŐƌĂŵƐĂŶĚƐƚĂĨĨŚŝƌŝŶŐƚŚĂƚǁĞƌĞƌĞĚƵĐĞĚĂŶĚĚĞĨĞƌƌĞĚŝŶƌĞƐƉŽŶƐĞƚŽKs/Ͳϭϵ͘ĂĐŚǇĞĂƌ͕ ƐƵƉƉůĞŵĞŶƚĂůďƵĚŐĞƚƌĞƋƵĞƐƚƐ͕ŝŶĂĚĚŝƚŝŽŶƚŽƚŚĞĐŝƚǇ͛ƐŽŶŐŽŝŶŐďĂƐĞďƵĚŐĞƚ͕ĂƌĞĐŽŶƐŝĚĞƌĞĚ͘/Ŷ&zϮϬϮϭͲϮϮ͕ďƵĚŐĞƚŝƚĞŵƐ ƐƵĐŚĂƐƚŚĞŚŽŵĞůĞƐƐǁŽƌŬƉůĂŶ͕'ƌŽǁƚŚDĂŶĂŐĞŵĞŶƚWůĂŶŝƚŝǌĞŶƐŽŵŵŝƚƚĞĞ͕&ŝƌĞĞƉĂƌƚŵĞŶƚ^ƚĂŶĚĂƌĚƐŽĨŽǀĞƌ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ͕ĂŶĚƚƌĂĨĨŝĐĂŶĚŵŽďŝůŝƚǇĞĨĨŽƌƚƐĐŽŶƚƌŝďƵƚĞĚƚŽƚŚĞŝŶĐƌĞĂƐĞ͘dŚĞĐŝƚǇ͛ƐǁĂƚĞƌĚŝƐƚƌŝĐƚĂůƐŽƐĂǁŝŶĐƌĞĂƐĞƐ ĂƐƚŚĞĐŽƐƚŽĨǁĂƚĞƌĂŶĚĂŵŽƵŶƚŽĨǁĂƚĞƌƉƵƌĐŚĂƐĞĚŝŶĐƌĞĂƐĞĚ͘ x'ĞŶĞƌĂů'ŽǀĞƌŶŵĞŶƚ;ϱйͿ dŚŝƐƐĞŐŵĞŶƚŽĨƚŚĞĐŝƚǇŝƐĚŝǀŝĚĞĚŝŶƚŽƚŚƌĞĞŵĂũŽƌŐƌŽƵƉƐ͗WŽůŝĐǇΘ>ĞĂĚĞƌƐŚŝƉ͕ĚŵŝŶŝƐƚƌĂƚŝǀĞ^ĞƌǀŝĐĞƐĂŶĚ ŶŽŶͲĚĞƉĂƌƚŵĞŶƚĂůĐŚĂƌŐĞƐ͘dŚĞWŽůŝĐǇĂŶĚ>ĞĂĚĞƌƐŚŝƉŐƌŽƵƉĞŶĐŽŵƉĂƐƐĞƐĂůůĞůĞĐƚĞĚŽĨĨŝĐŝĂůƐ͕ƚŚĞŝƚǇDĂŶĂŐĞƌĂŶĚ ŝƚǇƚƚŽƌŶĞǇŽĨĨŝĐĞƐ͕ƚŚĞŽŵŵƵŶŝĐĂƚŝŽŶƐΘŶŐĂŐĞŵĞŶƚƚĞĂŵ͕ĂŶĚƚŚĞ>ĞŐŝƐůĂƚŝǀĞΘŽŶƐƚŝƚƵĞŶƚ^ĞƌǀŝĐĞƐƚĞĂŵ͘ dŚĞĚŵŝŶŝƐƚƌĂƚŝǀĞ^ĞƌǀŝĐĞƐŐƌŽƵƉŝŶĐůƵĚĞƐ&ŝŶĂŶĐĞ͕,ƵŵĂŶZĞƐŽƵƌĐĞƐ;ŝŶĐůƵĚŝŶŐtŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶĂŶĚZŝƐŬ DĂŶĂŐĞŵĞŶƚͿ͕/ŶĨŽƌŵĂƚŝŽŶdĞĐŚŶŽůŽŐǇ͕ĂŶĚ/ŶŶŽǀĂƚŝŽŶΘĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚ͘EŽŶͲĚĞƉĂƌƚŵĞŶƚĂůĂůƐŽŝŶĐůƵĚĞƐ ĂŶǇƐƉĞĐŝĂůƉƌŽũĞĐƚƐĚŝƌĞĐƚĞĚďǇƚŚĞŝƚǇŽƵŶĐŝů͘ xWƵďůŝĐ^ĂĨĞƚǇ;ϮϵйͿ WƵďůŝĐ^ĂĨĞƚǇƌĞŵĂŝŶƐĂƚŽƉŝƚǇŽƵŶĐŝůƉƌŝŽƌŝƚǇ͘dŚŝƐŵĂũŽƌƐĞƌǀŝĐĞĂƌĞĂŝŶĐůƵĚĞƐƚŚĞWŽůŝĐĞĞƉĂƌƚŵĞŶƚ͕ǁŚŽƐĞ ŵŝƐƐŝŽŶŝƐƚŽƉƌŽƚĞĐƚĂŶĚƐĞƌǀĞƚŚĞĐŽŵŵƵŶŝƚǇǁŝƚŚŝŶƚĞŐƌŝƚǇ͕ƉƌŽĨĞƐƐŝŽŶĂůŝƐŵĂŶĚǀĂůŽƌ͘dŚĞ&ŝƌĞĞƉĂƌƚŵĞŶƚŝƐƚŚĞ ŽƚŚĞƌĐŽŵƉŽŶĞŶƚŽĨƚŚŝƐŵĂũŽƌƐĞƌǀŝĐĞĂƌĞĂǁŝƚŚĂŵŝƐƐŝŽŶƚŽĞŶŚĂŶĐĞƚŚĞƋƵĂůŝƚǇŽĨůŝĨĞďǇĚĞůŝǀĞƌŝŶŐĞǆĐĞƉƚŝŽŶĂů ƐĞƌǀŝĐĞƐŝŶƐĂĨĞŐƵĂƌĚŝŶŐůŝǀĞƐ͕ƉƌŽƉĞƌƚǇ͕ĂŶĚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͘ 10April 4, 2023 Item #5 Page 43 of 195 ( City of Carlsbad Functional Expenses for Fiscal Year 2021-22 $282.0 Million ■ General Government ■ Public Safety ■ Community Services ■ Public Works ■ Water ■ Golf Course Wastewater ■ Solid Waste 5% 29% 21% 14% 19% 4% 6% 2% xŽŵŵƵŶŝƚǇ^ĞƌǀŝĐĞƐ;ϮϭйͿ ŽŵŵƵŶŝƚǇ^ĞƌǀŝĐĞƐĐŽŶƐŝƐƚƐŽĨ>ŝďƌĂƌǇΘƵůƚƵƌĂůƌƚƐ͕WĂƌŬƐΘZĞĐƌĞĂƚŝŽŶ͕ŽŵŵƵŶŝƚǇĞǀĞůŽƉŵĞŶƚĂŶĚ,ŽƵƐŝŶŐ Θ,ŽŵĞůĞƐƐ^ĞƌǀŝĐĞƐ͘dŚĞƐĞĐŝƚǇƐĞƌǀŝĐĞĂƌĞĂƐĞŶƐƵƌĞƚŚĞĐŝƚǇ͛ƐƉůĂŶŶŝŶŐĂŶĚďƵŝůĚŝŶŐƉŽůŝĐŝĞƐĂƌĞĐĂƌƌŝĞĚŽƵƚ͕ĨŽƐƚĞƌ ůŝĨĞůŽŶŐůĞĂƌŶŝŶŐ͕ƐƵƉƉŽƌƚƐƚƌŽŶŐŶĞŝŐŚďŽƌŚŽŽĚƐ͕ĂĚŵŝŶŝƐƚĞƌĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐĂŶĚŚŽŵĞůĞƐƐƌĞƐƉŽŶƐĞƉƌŽŐƌĂŵƐ͕ ĂƚƚĞŶĚƚŽƚŚĞĐŽŵŵƵŶŝƚǇ͛ƐŚĞĂůƚŚĂŶĚǁĞůůŶĞƐƐĂŶĚƉƌŽŵŽƚĞƚƌĂŶƐƉĂƌĞŶĐǇŝŶŐŽǀĞƌŶŵĞŶƚ͘>ŝďƌĂƌǇΘƵůƚƵƌĂůƌƚƐ ƉƌŽǀŝĚĞƐĞĚƵĐĂƚŝŽŶĂů͕ŝŶĨŽƌŵĂƚŝŽŶĂůĂŶĚĐƵůƚƵƌĂůĂƌƚƐƐĞƌǀŝĐĞƐĨŽƌĂůůĐŽŵŵƵŶŝƚǇƌĞƐŝĚĞŶƚƐ͕ǁŚŝĐŚĐŽŶƚƌŝďƵƚĞƚŽ ƋƵĂůŝƚǇŽĨůŝĨĞďǇƐƵƉƉŽƌƚŝŶŐůŝĨĞůŽŶŐůĞĂƌŶŝŶŐ͕ƚŚĞƉƵƌƐƵŝƚŽĨŬŶŽǁůĞĚŐĞ͕ĂŶĚĐƌĞĂƚŝŶŐƚŚĞĂǀĂŝůĂďŝůŝƚǇŽĨĐŽŵŵƵŶŝƚǇ ŐĂƚŚĞƌŝŶŐƉůĂĐĞƐ͘WĂƌŬƐΘZĞĐƌĞĂƚŝŽŶŽĨĨĞƌƐĐŽŵƉƌĞŚĞŶƐŝǀĞŽƉƉŽƌƚƵŶŝƚŝĞƐĨŽƌŵĞĞƚŝŶŐƚŚĞƌĞĐƌĞĂƚŝŽŶĂůĂŶĚƐŽĐŝĂů ŶĞĞĚƐĂŶĚŝŶƚĞƌĞƐƚƐŽĨƚŚĞĐŽŵŵƵŶŝƚǇďǇƉƌŽǀŝĚŝŶŐƉƌŽŐƌĂŵƐĨŽƌĂůůƐĞŐŵĞŶƚƐŽĨƚŚĞƉŽƉƵůĂƚŝŽŶ͘ŽŵŵƵŶŝƚǇ ĞǀĞůŽƉŵĞŶƚ͛Ɛ ƉƌŝŵĂƌǇ ƌŽůĞƐ ŝŶĐůƵĚĞ ƚŚĞ ĚĂǇͲƚŽͲĚĂǇ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ ŽĨ ƚŚĞ ůŽĐĂů͕ ƐƚĂƚĞ͕ ĂŶĚ ĨĞĚĞƌĂů ůĂŶĚ ƵƐĞ ƌĞŐƵůĂƚŝŽŶƐ͕ƉƌŽŵŽƚŝŶŐĞĐŽŶŽŵŝĐĂŶĚďƵƐŝŶĞƐƐĚĞǀĞůŽƉŵĞŶƚ͕ƉƌŽƚĞĐƚŝŶŐůŝĨĞĂŶĚƉƌŽƉĞƌƚǇ͕ĞŶŚĂŶĐŝŶŐƉƵďůŝĐŚĞĂůƚŚ͕ ĂŶĚ ƉƌĞƐĞƌǀŝŶŐ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚ͘ ŽŵŵƵŶŝƚǇ ĞǀĞůŽƉŵĞŶƚ ĞŶĐŽŵƉĂƐƐĞƐ >ĂŶĚ hƐĞ WůĂŶŶŝŶŐ͕ ƵŝůĚŝŶŐ͕ ŽĚĞ 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ƐƚƌĞĞƚůŝŐŚƚŝŶŐ͕ĂŶĚƉƌŽǀŝĚĞƐŝŶĐŝĚĞŶƚƌĞƐƉŽŶƐĞĨŽƌĐŝƚǇĂŶĚƉƌŝǀĂƚĞƉƌŽƉĞƌƚǇ͘ xtĂƚĞƌ;ϭϵйͿ dŚĞĂƌůƐďĂĚDƵŶŝĐŝƉĂůtĂƚĞƌŝƐƚƌŝĐƚ;DtͿ͕ĂƐƵďƐŝĚŝĂƌǇŽĨƚŚĞĐŝƚǇ͕ƉƌŽǀŝĚĞƐƉŽƚĂďůĞĂŶĚƌĞĐǇĐůĞĚǁĂƚĞƌƐĞƌǀŝĐĞ ƚŽĂƉƉƌŽǆŝŵĂƚĞůǇϮϴ͕ϵϬϬĐƵƐƚŽŵĞƌƐǁŝƚŚŝŶĂϯϮ͘ϯƐƋƵĂƌĞŵŝůĞƐĞƌǀŝĐĞĂƌĞĂ͘DtƉƵƌĐŚĂƐĞƐϭϬϬйŽĨŝƚƐƉŽƚĂďůĞ ǁĂƚĞƌ͕ǁŚŝĐŚŝŶĐůƵĚĞƐĂůŽĐĂůƐƵƉƉůǇŽĨĚĞƐĂůŝŶĂƚĞĚƐĞĂǁĂƚĞƌ͕ĂƐƚƌĞĂƚĞĚǁĂƚĞƌĨƌŽŵƚŚĞDĞƚƌŽƉŽůŝƚĂŶtĂƚĞƌŝƐƚƌŝĐƚ ĂŶĚƚŚĞ^ĂŶŝĞŐŽŽƵŶƚǇtĂƚĞƌƵƚŚŽƌŝƚǇ͘DtĂůƐŽƉƌŽǀŝĚĞƐƌĞĐǇĐůĞĚǁĂƚĞƌĨŽƌŝƌƌŝŐĂƚŝŽŶƉƵƌƉŽƐĞƐǁŚŝĐŚŝƐ ƉƌŽĚƵĐĞĚĂƚƚŚĞĂƌůƐďĂĚtĂƚĞƌZĞĐǇĐůŝŶŐ&ĂĐŝůŝƚǇ͕ĂƐǁĞůůĂƐƉƵƌĐŚĂƐĞĚĨƌŽŵƚŚĞsĂůůĞĐŝƚŽƐtĂƚĞƌŝƐƚƌŝĐƚ͘ x'ŽůĨŽƵƌƐĞ;ϰйͿ dŚĞĐŝƚǇŽƉĞŶĞĚĂŵƵŶŝĐŝƉĂůŐŽůĨĐŽƵƌƐĞŝŶƚŚĞƐƵŵŵĞƌŽĨϮϬϬϳ͕ĨƵƌƚŚĞƌĞŶŚĂŶĐŝŶŐƚŚĞƚŽƵƌŝƐƚĂƚƚƌĂĐƚŝŽŶƐƚŚĞĐŝƚǇ ŽĨĨĞƌƐ͘dŚĞŵƵŶŝĐŝƉĂůŐŽůĨĐŽƵƌƐĞ͕dŚĞƌŽƐƐŝŶŐƐĂƚĂƌůƐďĂĚ͕ŝƐĂŶϭϴͲŚŽůĞŐŽůĨĐŽƵƌƐĞƐĞƚŝŶƚŚĞƌŽůůŝŶŐŚŝůůƐĂŶĚ ĐĂŶǇŽŶƐŽĨĂƌůƐďĂĚ͘tŝƚŚŽĐĞĂŶǀŝĞǁƐ͕ĂŚŝŐŚͲƋƵĂůŝƚǇŐŽůĨĞǆƉĞƌŝĞŶĐĞ͕ĂĨŝƌƐƚͲĐůĂƐƐƌĞƐƚĂƵƌĂŶƚĂŶĚĐůƵďŚŽƵƐĞ͕ĂŶĚ ĐŽŶŶĞĐƚŝŽŶƐƚŽŚŝŬŝŶŐƚƌĂŝůƐ͕dŚĞƌŽƐƐŝŶŐƐĂƚĂƌůƐďĂĚŝƐĂĚĞƐƚŝŶĂƚŝŽŶĨŽƌŐŽůĨĞƌƐĂŶĚŶŽŶͲŐŽůĨĞƌƐĂůŝŬĞ͘ xtĂƐƚĞǁĂƚĞƌ;ϲйͿ 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44 of 195 ( City of Carlsbad 'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐ dŚĞŝŶĐƌĞĂƐĞŝŶŶĞƚƉŽƐŝƚŝŽŶĨŽƌŐŽǀĞƌŶŵĞŶƚĂůĂĐƚŝǀŝƚŝĞƐǁĂƐΨϭϯ͘ϯŵŝůůŝŽŶ͘dŚŝƐŝŶĐƌĞĂƐĞǁĂƐƉƌŝŵĂƌŝůǇĚƌŝǀĞŶďǇĂ ƌĞĚƵĐƚŝŽŶŝŶŶĞƚƉĞŶƐŝŽŶůŝĂďŝůŝƚǇƚŚĂƚǁĂƐŽĨĨƐĞƚďǇĂŶŝŶĐƌĞĂƐĞŝŶĚĞĨĞƌƌĞĚŝŶĨůŽǁƐŽĨƌĞƐŽƵƌĐĞƐƌĞůĂƚĞĚƚŽƉĞŶƐŝŽŶ͘ /ŶĐƌĞĂƐĞĚƌĞǀĞŶƵĞƐĂůƐŽĐŽŶƚƌŝďƵƚĞĚƚŽƚŚĞƉŽƐŝƚŝǀĞĐŚĂŶŐĞŝŶŶĞƚƉŽƐŝƚŝŽŶ͖ŚŽǁĞǀĞƌ͕ƚŚŝƐǁĂƐƚĞŵƉĞƌĞĚďǇĂƐƵďƐƚĂŶƚŝĂů ŝŶĐƌĞĂƐĞŝŶŝŶǀĞƐƚŵĞŶƚůŽƐƐĞƐ͘dŽƚĂůƌĞǀĞŶƵĞƐĨƌŽŵŐŽǀĞƌŶŵĞŶƚĂůĂĐƚŝǀŝƚŝĞƐǁĞƌĞΨϮϬϴ͘ϳŵŝůůŝŽŶ;Ψϰϵ͘ϳŵŝůůŝŽŶŝŶƉƌŽŐƌĂŵ ƌĞǀĞŶƵĞƐĂŶĚΨϭϱϵ͘ϬŵŝůůŝŽŶŝŶŐĞŶĞƌĂůƌĞǀĞŶƵĞƐͿĂŶĚǁĞƌĞŽĨĨƐĞƚďǇΨϭϵϰ͘ϭŵŝůůŝŽŶŝŶƚŽƚĂůĐŽƐƚƐŽĨŐŽǀĞƌŶŵĞŶƚĂů ĂĐƚŝǀŝƚŝĞƐĂŶĚΨϭ͘ϯŵŝůůŝŽŶŝŶƚƌĂŶƐĨĞƌƐŽƵƚ͘ dŚĞƚĂďůĞŽŶƚŚĞĨŽůůŽǁŝŶŐƉĂŐĞƉƌĞƐĞŶƚƐƚŚĞƚŽƚĂůĐŽƐƚŽĨĞĂĐŚŽĨƚŚĞĐŝƚǇ͛ƐŵĂũŽƌƉƌŽŐƌĂŵƐ͕ĂƐǁĞůůĂƐĞĂĐŚƉƌŽŐƌĂŵ͛Ɛ ƌĞǀĞŶƵĞ ;ĨĞĞƐ ŐĞŶĞƌĂƚĞĚ ďǇ ƚŚĞ ĂĐƚŝǀŝƚŝĞƐ͕ ĐŽŶƚƌŝďƵƚŝŽŶƐ͕ ĂŶĚ ŝŶƚĞƌŐŽǀĞƌŶŵĞŶƚĂů ĨƵŶĚŝŶŐͿ͘ dŚĞ ŶĞƚ ĐŽƐƚ ;ƚŚĞĚŝĨĨĞƌĞŶĐĞďĞƚǁĞĞŶĂĚũŽŝŶŝŶŐďĂƌƐŝŶƚŚĞŐƌĂƉŚͿƐŚŽǁƐƚŚĞĨŝŶĂŶĐŝĂůďƵƌĚĞŶƚŚĂƚǁĂƐƉůĂĐĞĚŽŶƚŚĞĐŝƚǇ͛ƐƚĂǆƉĂǇĞƌƐ ďǇĞĂĐŚŽĨƚŚĞƐĞƉƌŽŐƌĂŵƐ;ĐŽƐƚƐĐŽǀĞƌĞĚďǇŐĞŶĞƌĂůƌĞǀĞŶƵĞƐͿ͘ ZĞǀĞŶƵĞƐĂƌĞŐĞŶĞƌĂƚĞĚƚŚƌŽƵŐŚƐĞǀĞƌĂůƐŽƵƌĐĞƐƚŽĐŽǀĞƌƚŚĞĐŽƐƚŽĨƚŚĞĐŝƚǇ͛ƐƉƌŽŐƌĂŵƐ͘dŽƚĂůƌĞǀĞŶƵĞƐŽĨΨϮϬϴ͘ϳŵŝůůŝŽŶ ŝŶĐůƵĚĞĨĞĞƐĂŶĚĐŚĂƌŐĞƐƉĂŝĚďǇƚŚŽƐĞǁŚŽĚŝƌĞĐƚůǇďĞŶĞĨŝƚĨƌŽŵƚŚĞƉƌŽŐƌĂŵƐ;Ψϭϵ͘ϰŵŝůůŝŽŶͿ͕ŐƌĂŶƚƐĂŶĚĐŽŶƚƌŝďƵƚŝŽŶƐ ĨƌŽŵŽƚŚĞƌŐŽǀĞƌŶŵĞŶƚƐĂŶĚŽƌŐĂŶŝǌĂƚŝŽŶƐǁŚŝĐŚƐƵďƐŝĚŝǌĞĐĞƌƚĂŝŶƉƌŽŐƌĂŵƐ;ΨϯϬ͘ϯŵŝůůŝŽŶͿ͕ĂŶĚƚĂǆĞƐĂŶĚŽƚŚĞƌ ƌĞǀĞŶƵĞƐ;ƐƵĐŚĂƐŝŶĐŽŵĞĨƌŽŵƉƌŽƉĞƌƚǇĂŶĚŝŶǀĞƐƚŵĞŶƚƐͿƌĞĐĞŝǀĞĚďǇƚŚĞĐŝƚǇƚŽƉĂǇĨŽƌƚŚĞ͞ƉƵďůŝĐďĞŶĞĨŝƚ͟ƉŽƌƚŝŽŶ ;Ψϭϱϵ͘ϬŵŝůůŝŽŶͿ͘ ŽŵŵƵŶŝƚǇ^ĞƌǀŝĐĞƐƌĞǀĞŶƵĞƐĂƌĞĚĞƌŝǀĞĚĨƌŽŵĚĞǀĞůŽƉŵĞŶƚĂĐƚŝǀŝƚŝĞƐƚŚƌŽƵŐŚŽƵƚƚŚĞĐŝƚǇ͕ŚŽƵƐŝŶŐĂƐƐŝƐƚĂŶĐĞƉƌŽŐƌĂŵƐ͕ ƉĂƌŬƐĂŶĚƌĞĐƌĞĂƚŝŽŶĨĞĞƐ͕ĂŶĚůŝďƌĂƌǇĨĞĞƐ͘ůĂƌŐĞƉŽƌƚŝŽŶŽĨŽŵŵƵŶŝƚǇ^ĞƌǀŝĐĞƐƌĞǀĞŶƵĞƐĂƌĞĐŽŵƉƌŝƐĞĚŽĨŚŽƵƐŝŶŐ ĂƐƐŝƐƚĂŶĐĞƉƌŽŐƌĂŵƐ;^ĞĐƚŝŽŶϴZĞŶƚĂůƐƐŝƐƚĂŶĐĞ͕ĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐůŽĂŶƌĞƉĂǇŵĞŶƚƐ͕ĂŶĚĚĞǀĞůŽƉĞƌƐƉĂǇŝŶŐŝŶƚŽƚŚĞ ĨĨŽƌĚĂďůĞ,ŽƵƐŝŶŐdƌƵƐƚ&ƵŶĚͿĂƐǁĞůůĂƐĐŚĂƌŐĞƐĨŽƌĚĞǀĞůŽƉŵĞŶƚƌĞůĂƚĞĚƐĞƌǀŝĐĞƐ͘ƐĞǆƉĞĐƚĞĚ͕ĚĞǀĞůŽƉŵĞŶƚĂĐƚŝǀŝƚǇ ƌĞĨůĞĐƚĞĚĂŵŽĚĞƌĂƚĞĚĞĐƌĞĂƐĞĨƌŽŵƚŚĞƉƌŝŽƌĨŝƐĐĂůǇĞĂƌ͕ŽĨĨƐĞƚƚŝŶŐŽŶůǇĂƉŽƌƚŝŽŶŽĨƚŚĞƉƌŽŐƌĂŵĞǆƉĞŶƐĞƐ͘ 12April 4, 2023 Item #5 Page 45 of 195 ( City of Carlsbad $90 $80 $70 $60 $50 $40 $30 $20 $10 so $8.2 -$14.8 Governmental Activities Program Revenues and Expenses Fiscal Year 2021-22 (in m1ll1ons) $81.1 $59.0 $6.6 1111 General Government Public Safety Community Services $39.2 Public Works ■ Program Revenues $49.7 ■ Program Expenses $194.1 dŚĞŵĂũŽƌŝƚǇŽĨWƵďůŝĐtŽƌŬƐƌĞǀĞŶƵĞƐĂƌĞƵƐĞĚƚŽĂĐƋƵŝƌĞĂŶĚďƵŝůĚĐĂƉŝƚĂůĂƐƐĞƚƐ;ǀĞƌƐƵƐĐŽǀĞƌŝŶŐŽƉĞƌĂƚŝŶŐĞǆƉĞŶƐĞƐͿ͘ /ŶĂĚĚŝƚŝŽŶ͕ƚŚĞĚŽŶĂƚŝŽŶŽĨĐĂƉŝƚĂůĂƐƐĞƚƐĨƌŽŵĚĞǀĞůŽƉĞƌƐŝƐƌĞĨůĞĐƚĞĚŝŶƚŚĞƉƌŽŐƌĂŵƌĞǀĞŶƵĞƐĨŽƌWƵďůŝĐtŽƌŬƐ͘ĂƉŝƚĂů ĂƐƐĞƚƐĂƌĞŐĞŶĞƌĂůůǇĐŽŶƐƚƌƵĐƚĞĚŽƌƉƵƌĐŚĂƐĞĚŽŶĐĞƐƵĨĨŝĐŝĞŶƚĨƵŶĚƐŚĂǀĞĂĐĐƵŵƵůĂƚĞĚƚŽƉĂǇĨŽƌƚŚĞĞŶƚŝƌĞĂƐƐĞƚĐŽƐƚ͘ ^ĞǀĞƌĂůǇĞĂƌƐĂŐŽ͕ƚŚĞĐŝƚǇĞŶƚĞƌĞĚĂŶĞǁƐƚĂŐĞŽĨŝƚƐůŝĨĞĐǇĐůĞ͕ĨƌŽŵĂĚĞǀĞůŽƉŝŶŐŽƌŐƌŽǁŝŶŐƐƚĂŐĞ͕ƚŽĂŵĂƚƵƌĞĂŶĚ ŵĂŝŶƚĞŶĂŶĐĞĨŽĐƵƐĞĚƐƚĂŐĞ͘ƐƚŚĞĐŝƚǇĐŽŶƚŝŶƵĞƐƚŽŵĂƚƵƌĞĂŶĚĂƉƉƌŽĂĐŚďƵŝůĚŽƵƚ͕ƚŚĞƌĞǁŝůůďĞĨĞǁĞƌŵĂƐƚĞƌƉůĂŶŶĞĚ ƉƌŽũĞĐƚƐ͘/ŶƉĂƐƚǇĞĂƌƐ͕ƚŚĞƐĞƉƌŽũĞĐƚƐĐŽŶƐƚƌƵĐƚĞĚŶĞǁĨĂĐŝůŝƚŝĞƐ͕ƌŽĂĚƐ͕ƉĂƌŬƐ͕ĂŶĚŽƚŚĞƌĐŝƚǇͲŽǁŶĞĚŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘dŚĞ ĐŝƚǇŝƐƐŚŝĨƚŝŶŐŝƚƐĨŽĐƵƐƚŽǁĂƌĚƐŵĂŝŶƚĞŶĂŶĐĞŽĨĞǆŝƐƚŝŶŐĨĂĐŝůŝƚŝĞƐĂŶĚǁŝůůƵƐĞĨƵŶĚŝŶŐƐŽƵƌĐĞƐƐƵĐŚĂƐƚŚĞ/ŶĨƌĂƐƚƌƵĐƚƵƌĞ ZĞƉůĂĐĞŵĞŶƚ&ƵŶĚƚŽŵĂŝŶƚĂŝŶĂŶĚƌĞƉůĂĐĞƚŚĞƐĞĂƐƐĞƚƐ͘ ƵƐŝŶĞƐƐͲƚǇƉĞĐƚŝǀŝƚŝĞƐ WƌŽŐƌĂŵƌĞǀĞŶƵĞƐĨŽƌƚŚĞĐŝƚǇ͛ƐďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐƚŽƚĂůĞĚΨϴϬ͘ϲŵŝůůŝŽŶĨŽƌƚŚĞǇĞĂƌ͕ǁŚŝůĞƉƌŽŐƌĂŵĞǆƉĞŶƐĞƐ ĞƋƵĂůĞĚΨϴϳ͘ϵŵŝůůŝŽŶ͘ tĂƚĞƌƉƌŽŐƌĂŵƌĞǀĞŶƵĞƐĂƌĞŐĞŶĞƌĂƚĞĚƉƌŝŵĂƌŝůǇĨƌŽŵƚŚĞƐĂůĞŽĨǁĂƚĞƌ͕ďƵƚĂůƐŽĨƌŽŵĚĞǀĞůŽƉĞƌĚŽŶĂƚĞĚĂƐƐĞƚƐĂŶĚ ŐƌĂŶƚƐ͘WƌŽŐƌĂŵƌĞǀĞŶƵĞƐǁĞƌĞƐůŝŐŚƚůǇŚŝŐŚĞƌƚŚĂŶƉƌŽŐƌĂŵĞǆƉĞŶƐĞƐĚƌŝǀĞŶďǇŝŶĐƌĞĂƐĞƐŝŶǁĂƚĞƌƌĂƚĞŝŶDĂƌĐŚϮϬϮϮ ƚŚĂƚǁĞƌĞŽĨĨƐĞƚďǇĂϭ͘ϲйĚĞĐƌĞĂƐĞŝŶǁĂƚĞƌǀŽůƵŵĞƐĂůĞƐ͘/ŶƚĞƌĞƐƚĞĂƌŶŝŶŐƐŝŶĐƌĞĂƐĞĚĚƵĞƚŽĂϮϮ͘ϲйŝŶĐƌĞĂƐĞŝŶƚŚĞ ǇŝĞůĚŽĨƚŚĞŝŶǀĞƐƚŵĞŶƚƉŽƌƚĨŽůŝŽĐŽŵďŝŶĞĚǁŝƚŚĂϭϰ͘ϯйŝŶĐƌĞĂƐĞŝŶƚŚĞŵŽŶƚŚůǇĂǀĞƌĂŐĞĐĂƐŚďĂůĂŶĐĞ͘ǆƉĞŶƐĞƐǁĞƌĞ ĚƌŝǀĞŶďǇŝŶĐƌĞĂƐĞƐĨŽƌƚŚĞĐŽƐƚŽĨƉƵƌĐŚĂƐĞĚǁĂƚĞƌ;ϳ͘ϳйͿ͘ tĂƐƚĞǁĂƚĞƌƉƌŽŐƌĂŵƌĞǀĞŶƵĞƐĨŝŶŝƐŚĞĚůŽǁĞƌĂƚΨϭϲ͘ϲŵŝůůŝŽŶƚŚĂŶƉƌŽŐƌĂŵĞǆƉĞŶƐĞƐŽĨΨϭϳ͘ϵŵŝůůŝŽŶĚƵĞƚŽŝŶĐƌĞĂƐĞĚ ƐƚĂĨĨŝŶŐƐĂůĂƌǇĂŶĚďĞŶĞĨŝƚĐŽƐƚƐ͕ŚŝŐŚĞƌŝŶƚĞƌĚĞƉĂƌƚŵĞŶƚĂůĞǆƉĞŶƐĞƐ͕ĂŶĚĂĚĚŝƚŝŽŶĂůĐĂƉŝƚĂůŽƵƚůĂǇĨŽƌƚŚĞƉƌŽĐƵƌĞŵĞŶƚ ŽĨĂƵƚŝůŝƚǇƚƌƵĐŬ͘dŚĞƐĞĞǆƉĞŶƐĞƐǁĞƌĞůĂƌŐĞůǇŽĨĨƐĞƚďǇƉƌŽŐƌĂŵƌĞǀĞŶƵĞƐĚƌŝǀĞŶďǇĂϮϬйƌĂƚĞŝŶĐƌĞĂƐĞƚŚĂƚǁĞŶƚŝŶƚŽ ĞĨĨĞĐƚDĂƌĐŚϮϬϮϮ͘ 13April 4, 2023 Item #5 Page 46 of 195 ( City of Carlsbad $60 $50 $40 $30 $20 $10 so $53.6 Water Business-Type Activities Program Revenues and Expenses Fiscal Year 2021-22 (in millions) $16.6 $17.9 $10.4 $11.7 Wastewater Golf Course $3.7 $4.7 _ ... Solid Waste ■ Program Revenues $80.6 ■ Program Expenses $87.9 dŚĞĐŝƚǇ͛ƐŐŽůĨĐŽƵƌƐĞĞŶƚĞƌƉƌŝƐĞǁĂƐŝŶŝƚƐϭϱƚŚĨƵůůǇĞĂƌŽĨŽƉĞƌĂƚŝŽŶĂŶĚĨŝŶŝƐŚĞĚƚŚĞĨŝƐĐĂůǇĞĂƌǁŝƚŚĂŶĞƚůŽƐƐŽĨ Ψϭ͘ϯŵŝůůŝŽŶ͘dŚĞĚĞŵĂŶĚĨŽƌŐŽůĨ͕ĂŶŽƵƚĚŽŽƌĂĐƚŝǀŝƚǇůĂƌŐĞůǇĞǆĐůƵĚĞĚĨƌŽŵKs/ͲϭϵƌĞůĂƚĞĚƌĞƐƚƌŝĐƚŝŽŶƐ͕ĞǆƉĞƌŝĞŶĐĞĚ ŚŝƐƚŽƌŝĐĂů ŚŝŐŚƐ ĂĐƌŽƐƐ ƚŚĞ ŶĂƚŝŽŶ͕ ŝŶ ƚŚĞ ƌĞŐŝŽŶ ĂŶĚ Ăƚ ƚŚĞ ĐŝƚǇ͛Ɛ ŵƵŶŝĐŝƉĂů ĐŽƵƌƐĞ͘ dŚĞ ĐŽƵƌƐĞ ǁŝƚŶĞƐƐĞĚ ŽǀĞƌ ϳϵ͕ϬϬϬƌŽƵŶĚƐƉůĂǇĞĚǁŚŝĐŚƐŝŐŶŝĨŝĐĂŶƚůǇĐŽŶƚƌŝďƵƚĞĚƚŽƚŚĞŐŽůĨĐŽƵƌƐĞƌĞǀĞŶƵĞƐƐƵĨĨŝĐŝĞŶƚůǇĨƵŶĚŝŶŐŶŽƌŵĂůŐŽůĨĐŽƵƌƐĞ ŽƉĞƌĂƚŝŶŐĞǆƉĞŶƐĞƐ;ŝ͘Ğ͕͘ĞǆĐůƵĚŝŶŐĚĞƉƌĞĐŝĂƚŝŽŶĞǆƉĞŶƐĞͿ͘ ^ŽůŝĚǁĂƐƚĞƌĞǀĞŶƵĞƐĂƌĞƉƌŝŵĂƌŝůǇŐĞŶĞƌĂƚĞĚĨƌŽŵĨĞĞƐĐŚĂƌŐĞĚƚŽǁĂƐƚĞƌĞŵŽǀĂůƐĞƌǀŝĐĞƐĐƵƐƚŽŵĞƌƐƚŽƐƵƉƉŽƌƚƚŚĞ ĐŝƚǇ͛ƐŝŶƚĞŐƌĂƚĞĚǁĂƐƚĞŵĂŶĂŐĞŵĞŶƚƉůĂŶǁŚŝĐŚŝŶĐůƵĚĞƌĞĐǇĐůŝŶŐĞĨĨŽƌƚƐĂŶĚƉƌŽƉĞƌǁĂƐƚĞĚŝƐƉŽƐĂůƉƌŽŐƌĂŵƐ͘ǆƉĞŶƐĞƐ ǁĞƌĞƉůĂŶŶĞĚƚŽƐƵƌƉĂƐƐƌĞǀĞŶƵĞƐĂƐŵĂŶǇǁĂƐƚĞŵĂŶĂŐĞŵĞŶƚƉƌŽŐƌĂŵƐŚĂǀĞŝŶĐƌĞĂƐĞĚŝŶůĞǀĞůŽĨĞĨĨŽƌƚĂŶĚĐŽƐƚ͕ƐƵĐŚ ĂƐƐŽůŝĚǁĂƐƚĞ͕ƌĞĐǇĐůŝŶŐ͕ĂŶĚŽƌŐĂŶŝĐƐŵĂŶĂŐĞŵĞŶƚƐĞƌǀŝĐĞƐ͕ŚŽƵƐĞŚŽůĚŚĂǌĂƌĚŽƵƐǁĂƐƚĞĐŽůůĞĐƚŝŽŶĂŶĚĚŝƐƉŽƐĂů͕ĂŶĚ ĞŶǀŝƌŽŶŵĞŶƚĂůŽƵƚƌĞĂĐŚĂŶĚĞĚƵĐĂƚŝŽŶ͘ĞƐƉŝƚĞƚŚĞĐƵƌƌĞŶƚǇĞĂƌůŽƐƐŽĨΨϭŵŝůůŝŽŶ͕ƚŚĞĨƵŶĚŚĂƐƐƵĨĨŝĐŝĞŶƚƌĞƐĞƌǀĞƐ͘ ĂƉŝƚĂůĐŽŶƐƚƌƵĐƚŝŽŶĞǆƉĞŶƐĞƐĂƌĞƐƉƌĞĂĚŽǀĞƌƚŚĞůŝĨĞŽĨĂŶĂƐƐĞƚĂƐĂŶŶƵĂůĚĞƉƌĞĐŝĂƚŝŽŶĐŚĂƌŐĞƐ;ƉƌŽŐƌĂŵĞǆƉĞŶƐĞƐͿ ĂŶĚĂƌĞŶŽƚƌĞĨůĞĐƚĞĚĂƐĂŶĞǆƉĞŶƐĞŝŶƚŚĞǇĞĂƌĂĐƋƵŝƌĞĚ͘ ŵŽƌĞĚĞƚĂŝůĞĚĚŝƐĐƵƐƐŝŽŶŽĨĞĂĐŚŽĨƚŚĞĞŶƚĞƌƉƌŝƐĞƐĐĂŶďĞĨŽƵŶĚŝŶƚŚĞWƌŽƉƌŝĞƚĂƌǇ&ƵŶĚƐ^ĞĐƚŝŽŶ͘ &ŝŶĂŶĐŝĂůŶĂůǇƐŝƐŽĨƚŚĞŝƚǇ͛Ɛ&ƵŶĚƐ ƐŶŽƚĞĚĞĂƌůŝĞƌ͕ƚŚĞĐŝƚǇƵƐĞƐĨƵŶĚĂĐĐŽƵŶƚŝŶŐƚŽĞŶƐƵƌĞĐŽŵƉůŝĂŶĐĞǁŝƚŚĨŝŶĂŶĐĞƌĞůĂƚĞĚůĞŐĂůƌĞƋƵŝƌĞŵĞŶƚƐ͘/ŶƚŚĞ ĐƵƌƌĞŶƚŶŶƵĂůŽŵƉƌĞŚĞŶƐŝǀĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͕ƚŚĞĐŝƚǇŝŵƉůĞŵĞŶƚĞĚ'^^ƚĂƚĞŵĞŶƚEŽ͘ϴϰ͕&ŝĚƵĐŝĂƌǇĐƚŝǀŝƚŝĞƐ͕ĂŶĚ '^^ƚĂƚĞŵĞŶƚEŽ͘ϵϴ͕dŚĞŶŶƵĂůŽŵƉƌĞŚĞŶƐŝǀĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͘ 'ŽǀĞƌŶŵĞŶƚĂů&ƵŶĚƐ dŚĞĨŽĐƵƐŽĨƚŚĞĐŝƚǇ͛ƐŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐŝƐƚŽƉƌŽǀŝĚĞŝŶĨŽƌŵĂƚŝŽŶŽŶŶĞĂƌͲƚĞƌŵŝŶĨůŽǁƐ͕ŽƵƚĨůŽǁƐ͕ĂŶĚďĂůĂŶĐĞƐŽĨ ƐƉĞŶĚĂďůĞƌĞƐŽƵƌĐĞƐ͘dŚŝƐŝŶĨŽƌŵĂƚŝŽŶŝƐƵƐĞĨƵůŝŶĂƐƐĞƐƐŝŶŐƚŚĞĐŝƚǇ͛ƐĨŝŶĂŶĐŝŶŐƌĞƋƵŝƌĞŵĞŶƚƐ͘/ŶƉĂƌƚŝĐƵůĂƌ͕ƵŶĂƐƐŝŐŶĞĚ ĨƵŶĚďĂůĂŶĐĞƐŵĂǇƐĞƌǀĞĂƐĂƵƐĞĨƵůŵĞĂƐƵƌĞŽĨĂŐŽǀĞƌŶŵĞŶƚ͛ƐŶĞƚƌĞƐŽƵƌĐĞƐĂǀĂŝůĂďůĞĨŽƌƐƉĞŶĚŝŶŐĂƚƚŚĞĞŶĚŽĨƚŚĞ ĨŝƐĐĂůǇĞĂƌ͘ dŚĞƌĞĂƌĞĨŝǀĞĨƵŶĚďĂůĂŶĐĞĐůĂƐƐŝĨŝĐĂƚŝŽŶƐ͗ŶŽŶƐƉĞŶĚĂďůĞ͕ƌĞƐƚƌŝĐƚĞĚ͕ĐŽŵŵŝƚƚĞĚ͕ĂƐƐŝŐŶĞĚ͕ĂŶĚƵŶĂƐƐŝŐŶĞĚ͘dŚĞƐĞĨƵŶĚ ďĂůĂŶĐĞĐůĂƐƐŝĨŝĐĂƚŝŽŶƐĐŽŵƉƌŝƐĞĂŚŝĞƌĂƌĐŚǇďĂƐĞĚƉƌŝŵĂƌŝůǇŽŶƚŚĞĞǆƚĞŶƚƚŽǁŚŝĐŚĂŐŽǀĞƌŶŵĞŶƚŝƐďŽƵŶĚƚŽŽďƐĞƌǀĞ ĐŽŶƐƚƌĂŝŶƚƐŝŵƉŽƐĞĚƵƉŽŶƚŚĞƵƐĞŽĨƚŚĞƌĞƐŽƵƌĐĞƐƌĞƉŽƌƚĞĚŝŶŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐ͘ƚƚŚĞĞŶĚŽĨƚŚĞĐƵƌƌĞŶƚĨŝƐĐĂůǇĞĂƌ͕ ƚŚĞĐŝƚǇ͛ƐŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐƌĞƉŽƌƚĞĚĐŽŵďŝŶĞĚĞŶĚŝŶŐĨƵŶĚďĂůĂŶĐĞƐŽĨΨϱϳϱ͘ϬŵŝůůŝŽŶ͕ĚŽǁŶΨϭϵ͘ϵŵŝůůŝŽŶĨƌŽŵƚŚĞ ǇĞĂƌďĞĨŽƌĞ͘ƉƉƌŽǆŝŵĂƚĞůǇϬ͘ϰй;ΨϮ͘ϰŵŝůůŝŽŶͿĐŽŶƐƚŝƚƵƚĞƐŶŽŶƐƉĞŶĚĂďůĞĨƵŶĚďĂůĂŶĐĞƐ͕ŵŽƐƚůǇĐŽŵƉƌŝƐĞĚŽĨĂĚǀĂŶĐĞƐ ĂŶĚůŽĂŶƐƚŽŽƚŚĞƌĨƵŶĚƐ͘ZĞƐƚƌŝĐƚĞĚĨƵŶĚďĂůĂŶĐĞƐĐĂŶŽŶůǇďĞƐƉĞŶƚĨŽƌĂƐƉĞĐŝĨŝĐƉƵƌƉŽƐĞƐƚŝƉƵůĂƚĞĚďǇůĂǁĂŶĚŵĂŬĞ 14April 4, 2023 Item #5 Page 47 of 195 ( City of Carlsbad Governmental Fund Balances for Fiscal Year 2021 -22 $575.0 Million ■ Nonspendable ■ Restricted Purposes ■ Committed ■ Assigned Unassigned 0.4% 43.3% 0.2% 37.1% 19.0% ƵƉĂďŽƵƚϰϯй;ΨϮϰϵ͘ϯŵŝůůŝŽŶͿ͘ƐƐŝŐŶĞĚĨƵŶĚďĂůĂŶĐĞƐĂƌĞŝŶƚĞŶĚĞĚƚŽďĞƵƐĞĚďǇƚŚĞĐŝƚǇĨŽƌƐƉĞĐŝĨŝĐƉƵƌƉŽƐĞƐ͕ďƵƚĚŽ ŶŽƚŵĞĞƚƚŚĞĐƌŝƚĞƌŝĂƚŽďĞĐůĂƐƐŝĨŝĞĚĂƐƌĞƐƚƌŝĐƚĞĚŽƌĐŽŵŵŝƚƚĞĚ͘dŚĞƐĞŵĂŬĞƵƉŽǀĞƌϯϳй;ΨϮϭϯ͘ϯŵŝůůŝŽŶͿŽĨƚŚĞĐŝƚǇ͛Ɛ ĨƵŶĚďĂůĂŶĐĞ͘hŶĂƐƐŝŐŶĞĚĨƵŶĚďĂůĂŶĐĞŝƐϭϵй;ΨϭϬϵ͘ϬŵŝůůŝŽŶͿŽĨƚŚĞŽǀĞƌĂůůĨƵŶĚďĂůĂŶĐĞ͕ǁŚŝĐŚŝƐĂǀĂŝůĂďůĞĨŽƌƐƉĞŶĚŝŶŐ ĂƚƚŚĞŝƚǇŽƵŶĐŝů͛ƐĚŝƐĐƌĞƚŝŽŶ͘ dŚĞ'ĞŶĞƌĂů&ƵŶĚŝƐƚŚĞŵĂŝŶŽƉĞƌĂƚŝŶŐĨƵŶĚŽĨƚŚĞĐŝƚǇ͕ĂŶĚĂƚƚŚĞĞŶĚŽĨƚŚĞĨŝƐĐĂůǇĞĂƌŚĂĚĂƚŽƚĂůĨƵŶĚďĂůĂŶĐĞŽĨ ΨϭϲϮ͘ϭŵŝůůŝŽŶ͕ĂŶŝŶĐƌĞĂƐĞŽĨΨϮ͘ϯŵŝůůŝŽŶĨƌŽŵƚŚĞƉƌŝŽƌĨŝƐĐĂůǇĞĂƌ͘dŚŝƐƌĞƐƵůƚĞĚĨƌŽŵĂŶĂĐĐĞůĞƌĂƚĞĚƌĞĐŽǀĞƌǇĨƌŽŵ Ks/ͲϭϵĂƐƉƌŽƉĞƌƚǇ͕ƐĂůĞƐ͕ĂŶĚƚƌĂŶƐŝĞŶƚŽĐĐƵƉĂŶĐǇƚĂǆƌĞǀĞŶƵĞƐƌĞĂĐŚĞĚŚŝƐƚŽƌŝĐĂůůĞǀĞůƐ͖ŚŽǁĞǀĞƌ͕ƚŚŝƐŝŶĐƌĞĂƐĞǁĂƐ ƐŝŐŶŝĨŝĐĂŶƚůǇŶĞƵƚƌĂůŝǌĞĚďǇƵŶƌĞĂůŝǌĞĚŝŶǀĞƐƚŵĞŶƚůŽƐƐĞƐŽŶƚŚĞĐŝƚǇ͛ƐƉŽƌƚĨŽůŝŽ͘ dŚĞƵŶĂƐƐŝŐŶĞĚĨƵŶĚďĂůĂŶĐĞƉŽƌƚŝŽŶŽĨƚŚĞ'ĞŶĞƌĂů&ƵŶĚǁĂƐΨϭϬϵ͘ϵŵŝůůŝŽŶ͕ĂŶŝŶĐƌĞĂƐĞŽĨΨϭϬ͘ϳŵŝůůŝŽŶĨƌŽŵůĂƐƚĨŝƐĐĂů ǇĞĂƌ͘ dŚŝƐ ŝŶĐƌĞĂƐĞ ƌĞƐƵůƚĞĚ ĨƌŽŵ ;ďĞĨŽƌĞ ƚƌĂŶƐĨĞƌƐ ŽƵƚͿ ƌĞǀĞŶƵĞƐ ŝŶ ĞǆĐĞƐƐ ŽĨ ĞǆƉĞŶĚŝƚƵƌĞƐ ŽĨ ĂƉƉƌŽǆŝŵĂƚĞůǇ ΨϮϵ͘ϮŵŝůůŝŽŶ͘/Ŷ^ĞƉƚĞŵďĞƌϮϬϮϭ͕ŝƚǇŽƵŶĐŝůĂƉƉƌŽǀĞĚĂĚĚŝƚŝŽŶĂůƚƌĂŶƐĨĞƌƐƚŽĨƵŶĚĐĂƉŝƚĂůƉƌŽũĞĐƚƐƚŚĂƚǁĞƌĞƉƌĞǀŝŽƵƐůǇ 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ƐƵŵŵĂƌǇŽĨƚŚĞ'ĞŶĞƌĂů&ƵŶĚ͛ƐƌĞǀĞŶƵĞƐ͕ĞǆƉĞŶĚŝƚƵƌĞƐĂŶĚĐŚĂŶŐĞƐŝŶĨƵŶĚďĂůĂŶĐĞŝƐƐŚŽǁŶŽŶƚŚĞĨŽůůŽǁŝŶŐƉĂŐĞ͘ ĐƚƵĂů dĂƌŐĞƚ hŶĂƐƐŝŐŶĞĚ'ĞŶĞƌĂů&ƵŶĚďĂůĂŶĐĞ ϭϬϵ͘ϵΨϳϯ͘ϴΨ &ŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮĂĚŽƉƚĞĚ'ĞŶĞƌĂů&ƵŶĚďƵĚŐĞƚĞĚĞǆƉĞŶĚŝƚƵƌĞƐ ϭϴϰ͘ϲΨϭϴϰ͘ϲΨ 'ĞŶĞƌĂů&ƵŶĚƌĞƐĞƌǀĞƉĞƌĐĞŶƚĂŐĞ ϲϬй ϰϬй 'EZ>&hEZ^Zs>E ;ŝŶŵŝůůŝŽŶƐŽĨĚŽůůĂƌƐͿ 15April 4, 2023 Item #5 Page 48 of 195 ( City of Carlsbad dŚĞ ŽŵŵƵŶŝƚǇ &ĂĐŝůŝƚŝĞƐ ŝƐƚƌŝĐƚ EŽ͘ ϭ &ƵŶĚĐŽŶƚŝŶƵĞƐ ƚŽ ĐŽůůĞĐƚ ĂƐƐĞƐƐŵĞŶƚƐ ĨŽƌ ƚŚĞ ĨƵƚƵƌĞ ĐŽŶƐƚƌƵĐƚŝŽŶ ŽĨĐŝƚǇ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚĨĂĐŝůŝƚŝĞƐ͘ dŚĞ'ĞŶĞƌĂůĂƉŝƚĂůŽŶƐƚƌƵĐƚŝŽŶ&ƵŶĚƵƐĞĚĂƉŽƌƚŝŽŶŽĨŝƚƐĞǆŝƐƚŝŶŐĨƵŶĚďĂůĂŶĐĞƚŽǁĂƌĚƐŝŵƉƌŽǀĞŵĞŶƚƐĂƚŝƚǇ,Ăůů͕&ŝƌĞ ^ƚĂƚŝŽŶEŽ͘Ϯ͕ƚŚĞĂůĂǀĞƌĂWĂƌŬ'ĂƚĞǁĂǇ͕ĂŶĚǀĂƌŝŽƵƐŽƚŚĞƌƉƌŽũĞĐƚƐ͘dŚĞĞǆƉĞŶĚŝƚƵƌĞƐǁĞƌĞƉĂƌƚŝĂůůǇŽĨĨƐĞƚďǇĂƚƌĂŶƐĨĞƌ ĨƌŽŵƚŚĞ'ĞŶĞƌĂů&ƵŶĚĨŽƌĨƵƚƵƌĞƉƌŽũĞĐƚƐ͘ dŚĞĨƵŶĚďĂůĂŶĐĞŝŶƚŚĞ/ŶĨƌĂƐƚƌƵĐƚƵƌĞZĞƉůĂĐĞŵĞŶƚ&ƵŶĚŝŶĐƌĞĂƐĞĚĂƐƚŚĞĐŝƚǇĐŽŶƚŝŶƵĞĚƚŚĞĂŶŶƵĂůƚƌĂŶƐĨĞƌŽĨĨƵŶĚƐ ĨƌŽŵƚŚĞ'ĞŶĞƌĂů&ƵŶĚĨŽƌƚŚĞĨƵƚƵƌĞƌĞƉůĂĐĞŵĞŶƚŽĨĞǆŝƐƚŝŶŐŝŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚĨĂĐŝůŝƚŝĞƐ͘WƌŽũĞĐƚƐĨŽƌƚŚĞǇĞĂƌŝŶĐůƵĚĞĚ ƚŚĞWŽůŝĐĞĂŶĚ&ŝƌĞ,ĞĂĚƋƵĂƌƚĞƌƐƌĞĨƵƌďŝƐŚŵĞŶƚĂŶĚǀĂƌŝŽƵƐŽƚŚĞƌƉƌŽũĞĐƚƐ͘ ƵƌŝŶŐƚŚĞǇĞĂƌ͕ƚŚĞĐŝƚǇĐŽŶƚŝŶƵĞĚƚŽƐĞƚĂƐŝĚĞŵŽŶĞǇĨŽƌƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨǀĂƌŝŽƵƐƉƌŽũĞĐƚƐǁŝƚŚŝŶƚŚĞƐĞĂŶĚŽƚŚĞƌ ŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐ͘,ŝƐƚŽƌŝĐĂůůǇ͕ƚŚĞĐŝƚǇŚĂƐŶŽƚŝƐƐƵĞĚĚĞďƚƚŽĨƵŶĚƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨĐĂƉŝƚĂůƉƌŽũĞĐƚƐĂŶĚƐĞƚƐĂƐŝĚĞ ĨƵŶĚƐŽŶĂŶĂŶŶƵĂůďĂƐŝƐƵŶƚŝůƐƵĨĨŝĐŝĞŶƚĨƵŶĚƐŚĂǀĞďĞĞŶĐŽůůĞĐƚĞĚĨŽƌƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨƐƉĞĐŝĨŝĐƉƌŽũĞĐƚƐ͘/ŶĂĚĚŝƚŝŽŶ͕ ƉƌŽũĞĐƚƐǁŝůůŶŽƚďĞĐŽŶƐƚƌƵĐƚĞĚƵŶƚŝůĂŶƚŝĐŝƉĂƚĞĚĂŶŶƵĂůŽƉĞƌĂƚŝŶŐĐŽƐƚƐĐĂŶďĞĂďƐŽƌďĞĚŝŶƚŽƚŚĞĐŝƚǇ͛ƐďƵĚŐĞƚǁŝƚŚŽƵƚ ĐƌĞĂƚŝŶŐĂĚĞĨŝĐŝƚ͘ 16April 4, 2023 Item #5 Page 49 of 195 ('city of Carlsbad GENERAL FUND STATEMENT OF REVENUES, EXl"ENDITURES ANO CHANGES IIN FU ND BALANCE (in millions of dollar,s) Tota'I Increase Percentage Totall (Decrea'Se) Change 2021 2022 2021-22 Revenues Taxes $1 49.4 $178 .8 $29.4 19 .7% Intergovernmental 10.1 7 .9 (2.2) -22.1% Licenses .and permits 2.4 3 .2 0.8 3 4.7% Charges for servi c-es 7.5 9 .8 2.3 31.0% Fines and forfeitures 0.4 0 .3 ·(0.1) -14.3% lnc,ome from property and i nvestments 5.6 (5.6) (1L2) -199.5% Miscellaneous 1.6 L 2 (O.4) -25.8% Total revenues 177.0 195.7 18.7 10.5% Expendit ures General government 22.0 22.0 0.0 0 .0% Interdepartment al charges (5.1) (5.3) ·(0.2) 3.9% Publ ic safety 78.3 82.0 3.7 4.7% Community servi ces 40.5 45.0 4.5 11.0% Publ ic w orks 18.5 20.1 1.6 8.4% Capital outlay 0.0 2.7 2.7 100.0% Total expe-ndit ur,es 154.2 166A 12.2 7.9% Excess (defi,ciency) before transfers 22.8 29.3 Transfers in 0.0 0 .0 Transfers out (57.0) (27.0) Increase (decr,ea,se) in fond balance {34.21 2.3 Beginning fund balance 194.0 159.8 Ending fund balance $159.8 $162.1 WƌŽƉƌŝĞƚĂƌǇ&ƵŶĚƐ dŚĞƉƵƌƉŽƐĞŽĨƚŚĞĐŝƚǇ͛ƐƉƌŽƉƌŝĞƚĂƌǇĨƵŶĚƐĞĐƚŝŽŶƐŝƐƚŽƉƌŽǀŝĚĞƐŚŽƌƚͲƚĞƌŵĂŶĚůŽŶŐͲƚĞƌŵĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶĂďŽƵƚ ƚŚĞĐŝƚǇ͛ƐďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐ͘dŚĞĂŶĂůǇƐŝƐĨŽĐƵƐĞƐŽŶƚŚĞĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨŽƉĞƌĂƚŝŶŐŝŶĐŽŵĞ͕ĐŚĂŶŐĞƐŝŶŶĞƚƉŽƐŝƚŝŽŶ ;ĐŽƐƚƌĞĐŽǀĞƌǇͿ͕ĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶ͕ĂŶĚĐĂƐŚĨůŽǁƐ͘ dŚĞĂƌůƐďĂĚDƵŶŝĐŝƉĂůtĂƚĞƌŝƐƚƌŝĐƚ;DtͿĨƵŶĚƐĞǆƉĞƌŝĞŶĐĞĚĂŶŽƉĞƌĂƚŝŶŐůŽƐƐŽĨĂƉƉƌŽǆŝŵĂƚĞůǇΨϮ͘ϮŵŝůůŝŽŶĨŽƌƚŚĞ ǇĞĂƌ͘ KƉĞƌĂƚŝŶŐ ƌĞǀĞŶƵĞƐ ǁĞƌĞ 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195 ( City of Carlsbad 'ĞŶĞƌĂů&ƵŶĚƵĚŐĞƚĂƌǇ,ŝŐŚůŝŐŚƚƐĨŽƌ&ŝƐĐĂůzĞĂƌϮϬϮϭͲϮϮ DĂŶĂŐĞŵĞŶƚŵŽŶŝƚŽƌƐƌĞǀĞŶƵĞƐĚƵƌŝŶŐƚŚĞǇĞĂƌĂŶĚƵƉĚĂƚĞƐĞƐƚŝŵĂƚĞĚƌĞǀĞŶƵĞĨŝŐƵƌĞƐǁŚĞŶŶĞǁŝŶĨŽƌŵĂƚŝŽŶŝƐ ƌĞĐĞŝǀĞĚ͘ 'ĞŶĞƌĂů &ƵŶĚ ƌĞǀĞŶƵĞ ĞƐƚŝŵĂƚĞƐ ǁĞƌĞ ƌĞǀŝƐĞĚ ŵŝŶŝŵĂůůǇĚƵƌŝŶŐƚŚĞǇĞĂƌ͕ĂƐĐŽŵƉĂƌĞĚƚŽƚŚĞŽƌŝŐŝŶĂůůǇ ďƵĚŐĞƚĞĚĞƐƚŝŵĂƚĞƐ͘^ŽŵĞŽĨƚŚĞĨĂĐƚŽƌƐƚŚĂƚůĞĚƚŽƚŚĞΨϬ͘ϲŵŝůůŝŽŶŝŶĐƌĞĂƐĞŝŶƌĞǀĞŶƵĞĞƐƚŝŵĂƚĞƐŝŶĐůƵĚĞĚ͗ xĚƵůƚůŝƚĞƌĂĐǇĂŶĚĨĂŵŝůǇůŝƚĞƌĂĐǇŐƌĂŶƚĨƵŶĚƐƌĞĐĞŝǀĞĚĚƵƌŝŶŐƚŚĞǇĞĂƌ xĞǀĞůŽƉĞƌĚĞƉŽƐŝƚƐƌĞĐĞŝǀĞĚĚƵƌŝŶŐƚŚĞǇĞĂƌ dŚĞŝŶĐƌĞĂƐĞĨƌŽŵƚŚĞƚŽƚĂůŽƌŝŐŝŶĂůĞǆƉĞŶĚŝƚƵƌĞĂŶĚƚƌĂŶƐĨĞƌƐďƵĚŐĞƚƚŽƚŚĞĨŝŶĂůďƵĚŐĞƚĂŵŽƵŶƚĞĚƚŽΨϯϵ͘ϴŵŝůůŝŽŶ ƉƌŝŵĂƌŝůǇĚƵĞƚŽ͗ xdƌĂŶƐĨĞƌƐ ŽĨ Ψϭϵ͘ϴ ŵŝůůŝŽŶ ƚŽ ƉƌŝŵĂƌŝůǇ ĨƵŶĚ ƚŚĞ 'ĞŶĞƌĂů ĂƉŝƚĂů ŽŶƐƚƌƵĐƚŝŽŶ &ƵŶĚ ĂŶĚ ^ƚƌĂƚĞŐŝĐ ŝŐŝƚĂů dƌĂŶƐĨŽƌŵĂƚŝŽŶ/ŶǀĞƐƚŵĞŶƚWƌŽŐƌĂŵ xΨϭ͘ϱŵŝůůŝŽŶĨŽƌůŝĐĞŶƐĞƉůĂƚĞƌĞĂĚĞƌĐĂŵĞƌĂƐĨŽƌƚŚĞWŽůŝĐĞĞƉĂƌƚŵĞŶƚ xΨϲ͘ϰŵŝůůŝŽŶĂƉƉƌŽƉƌŝĂƚŝŽŶĨŽƌĂŶĚĚŝƚŝŽŶĂůŝƐĐƌĞƚŝŽŶĂƌǇWĂǇŵĞŶƚ;WͿƚŽĂůWZ^ xKƵƚƐƚĂŶĚŝŶŐƉƵƌĐŚĂƐĞŽƌĚĞƌƐĂƚ:ƵŶĞϯϬ͕ϮϬϮϭƚŽƚĂůŝŶŐΨϭϭ͘ϯŵŝůůŝŽŶĐĂƌƌŝĞĚĨŽƌǁĂƌĚŝŶƚŽĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮ xdŚĞĐĂƌƌǇĨŽƌǁĂƌĚŽĨŽƚŚĞƌƵŶƐƉĞŶƚĨƵŶĚƐĂƚ:ƵŶĞϯϬ͕ϮϬϮϭƉůĂŶŶĞĚƚŽďĞƵƐĞĚĨŽƌ͗ o,ŽƵƐŝŶŐůĞŵĞŶƚ oDŽƚĞůͬ,ŽƚĞůsŽƵĐŚĞƌWƌŽŐƌĂŵ oWƵďůŝĐƌƚ&ƵŶĚƐ o,ŽŵĞůĞƐƐKƵƚƌĞĂĐŚdĞĂŵǀĞŚŝĐůĞƐ oKs/ĐŽŶŽŵŝĐZĞǀŝƚĂůŝǌĂƚŝŽŶ xdŚĞĂƉƉƌŽƉƌŝĂƚŝŽŶŽĨŐƌĂŶƚŵŽŶĞǇƌĞĐĞŝǀĞĚ xĞǀĞůŽƉĞƌĨƵŶĚĞĚƐƚƵĚŝĞƐ dŚĞĚŝĨĨĞƌĞŶĐĞŽĨΨϮϱ͘ϳŵŝůůŝŽŶďĞƚǁĞĞŶƚŚĞĨŝŶĂůďƵĚŐĞƚĞĚĞǆƉĞŶĚŝƚƵƌĞƐƉůƵƐƚƌĂŶƐĨĞƌƐĂŶĚƚŚĞĂĐƚƵĂůĞǆƉĞŶĚŝƚƵƌĞƐƉůƵƐ ƚƌĂŶƐĨĞƌƐĨŽƌƚŚĞǇĞĂƌ͕ŽŶĂďƵĚŐĞƚĂƌǇďĂƐŝƐ͕ĐĂŶďĞŐĞŶĞƌĂůůǇƐƵŵŵĂƌŝǌĞĚĂƐĨŽůůŽǁƐ͗ xΨϭϮ͘ϮŵŝůůŝŽŶŝŶŽƵƚƐƚĂŶĚŝŶŐĞŶĐƵŵďƌĂŶĐĞƐĂƐŽĨ:ƵŶĞϯϬ͕ϮϬϮϮƚŚĂƚǁĞƌĞĐĂƌƌŝĞĚĨŽƌǁĂƌĚƚŽĨŝƐĐĂůǇĞĂƌϮϬϮϮͲϮϯ x/ŶƚĞƌĚĞƉĂƌƚŵĞŶƚĂů ĐŚĂƌŐĞƐ ǁĞƌĞ ΨϬ͘Ϯ ŵŝůůŝŽŶ ĂďŽǀĞ ĞƐƚŝŵĂƚĞƐ͕ ǁŚŝĐŚ ĂƌĞ ŽĨĨƐĞƚ ĂŐĂŝŶƐƚ ĞǆƉĞŶĚŝƚƵƌĞƐ ĨŽƌ ƌĞƉŽƌƚŝŶŐƉƵƌƉŽƐĞƐŝŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ x^ĂǀŝŶŐƐďǇǀĂƌŝŽƵƐŵĂũŽƌƐĞƌǀŝĐĞĂƌĞĂƐǁŝƚŚŝŶƚŚĞĐŝƚǇŵĂŬŝŶŐƵƉƚŚĞƌĞŵĂŝŶŝŶŐĚŝĨĨĞƌĞŶĐĞ͘ƵƌƌĞŶƚǇĞĂƌƐĂǀŝŶŐƐ ǁĞƌĞŐĞŶĞƌĂƚĞĚĨƌŽŵ͗ odŚĞĐůŽƐƵƌĞŽĨƉƵƌĐŚĂƐĞŽƌĚĞƌƐƚŚĂƚŚĂĚŶŽĂĐƚŝǀŝƚǇĚƵƌŝŶŐƚŚĞƉĂƐƚϭϮŵŽŶƚŚƐ ohŶƐƉĞŶƚƉƌŽŐƌĂŵĂƉƉƌŽƉƌŝĂƚŝŽŶƐŝŶ,ŽƵƐŝŶŐĂŶĚ,ŽŵĞůĞƐƐ^ĞƌǀŝĐĞƐ ohŶĨŝůůĞĚƐƚĂĨĨǀĂĐĂŶĐŝĞƐ oKǀĞƌĂůůĂǁĂƌĞŶĞƐƐŽĨĨŝƐĐĂůƌĞƐƉŽŶƐŝďŝůŝƚǇƚŚƌŽƵŐŚŽƵƚƚŚĞĐŝƚǇ &ŽƌƉƵƌƉŽƐĞƐŽĨďƵĚŐĞƚĂƌǇƉƌĞƐĞŶƚĂƚŝŽŶ͕ĂĐƚƵĂůƌĞǀĞŶƵĞƐŚĂǀĞďĞĞŶĂĚũƵƐƚĞĚƚŽĞǆĐůƵĚĞƵŶƌĞĂůŝǌĞĚŐĂŝŶƐĂŶĚůŽƐƐĞƐŝŶ ŝŶǀĞƐƚŵĞŶƚƐƉƵƌƐƵĂŶƚƚŽ'^͖ĂĐƚƵĂůĞǆƉĞŶĚŝƚƵƌĞƐŚĂǀĞďĞĞŶĂĚũƵƐƚĞĚƚŽŝŶĐůƵĚĞƌĞŵĂŝŶŝŶŐĞŶĐƵŵďƌĂŶĐĞƐ͘ 18April 4, 2023 Item #5 Page 51 of 195 ('city of Carlsbad ĂƉŝƚĂůƐƐĞƚĂŶĚĞďƚĚŵŝŶŝƐƚƌĂƚŝŽŶ ĂƉŝƚĂůƐƐĞƚƐ ƚƚŚĞĞŶĚŽĨĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮ͕ƚŚĞĐŝƚǇŚĂĚƌĞĐŽƌĚĞĚŝŶǀĞƐƚŵĞŶƚƐŽĨŽǀĞƌΨϭ͘ϭďŝůůŝŽŶŝŶĂďƌŽĂĚƌĂŶŐĞŽĨĐĂƉŝƚĂůĂƐƐĞƚƐ͕ ŝŶĐůƵĚŝŶŐƉĂƌŬĨĂĐŝůŝƚŝĞƐ͕ůĂŶĚ͕ďƵŝůĚŝŶŐƐ͕ƌŽĂĚƐ͕ďƌŝĚŐĞƐ͕ĚƌĂŝŶĂŐĞĨĂĐŝůŝƚŝĞƐ͕ǁĂƚĞƌĂŶĚǁĂƐƚĞǁĂƚĞƌůŝŶĞƐ͕WŽůŝĐĞĂŶĚ&ŝƌĞ ǀĞŚŝĐůĞƐ͕ĂŶĚŽƚŚĞƌŵĂŝŶƚĞŶĂŶĐĞĞƋƵŝƉŵĞŶƚ͘dŚŝƐŶƵŵďĞƌŝŶĐůƵĚĞƐŝŶĨƌĂƐƚƌƵĐƚƵƌĞĂƐƐĞƚƐŽĨƚŚĞŐĞŶĞƌĂůŐŽǀĞƌŶŵĞŶƚǁŚŝĐŚ ĂƌĞƌĞƋƵŝƌĞĚƉĞƌ'^͘ ^ŽŵĞŽĨƚŚŝƐǇĞĂƌ͛ƐŵĂũŽƌĐĂƉŝƚĂůĂƐƐĞƚĂĚĚŝƚŝŽŶƐŝŶĐůƵĚĞĚ͗ xŽůůĞŐĞŽƵůĞǀĂƌĚǆƚĞŶƐŝŽŶ xĂƌƌŝŽ^ƚƌĞĞƚ>ŝŐŚƚŝŶŐ x&ŝƌĞ^ƚĂƚŝŽŶEŽ͘Ϯ xdĞŵƉŽƌĂƌǇ&ŝƌĞ^ƚĂƚŝŽŶEŽ͘ϳ xĂůĂǀĞƌĂ,ŝůůƐŽŵŵƵŶŝƚǇWĂƌŬ'ĂƚĞǁĂǇ /ŵƉƌŽǀĞŵĞŶƚƐ xWŽŝŶƐĞƚƚŝĂWĂƌŬ xsĞƚĞƌĂŶ͛ƐDĞŵŽƌŝĂůWĂƌŬ xsŝůůĂŐĞ,^ŽƵƚŚKĨĨ>ĞĂƐŚŽŐƌĞĂĂŶĚdƌĂŝů^ĞŐŵĞŶƚ ϱ xWŽůŝĐĞĂŶĚ&ŝƌĞ,ĞĂĚƋƵĂƌƚĞƌƐZĞŶŽǀĂƚŝŽŶ xĞĂĐŚĐĐĞƐƐZĞƉĂŝƌĂŶĚhƉŐƌĂĚĞƐʹWŝŶĞǀĞŶƵĞƚŽ dĂŵĂƌĂĐŬ 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/dzK&Z>^Ζ^Khd^dE/E'd 'ŽǀĞƌŶŵĞŶƚĂů ƵƐŝŶĞƐƐͲdǇƉĞ 20April 4, 2023 Item #5 Page 53 of 195 ( City of Carlsbad hŶĞŵƉůŽǇŵĞŶƚĐŽŶƚŝŶƵĞĚŝƚƐĚŽǁŶǁĂƌĚƚƌĞŶĚƌĞĂĐŚŝŶŐĂůŽǁŽĨϮ͘ϰйŝŶDĂǇϮϬϮϮ͕ďĞĨŽƌĞƌŝƐŝŶŐƐůŝŐŚƚůǇƚŽϯйŝŶ ƵŐƵƐƚϮϬϮϮ͘/Ŷ^ĞƉƚĞŵďĞƌϮϬϮϮ͕ĂƌůƐďĂĚƵŶĞŵƉůŽǇŵĞŶƚĚŝƉƉĞĚďĂĐŬĚŽǁŶƚŽϮ͘ϳй͘dŚĞƵŶĞŵƉůŽǇŵĞŶƚƌĂƚĞŝŶ ^ĞƉƚĞŵďĞƌǁĂƐϯ͘ϵйĂƚƚŚĞƐƚĂƚĞůĞǀĞůĂŶĚϯ͘ϭйĂƚƚŚĞĐŽƵŶƚǇůĞǀĞů͘ KŶŐŽŝŶŐŝŶĨůĂƚŝŽŶĂŶĚĐŽŶĐĞƌŶƐŽĨĂƌĞĐĞƐƐŝŽŶĂƌĞŝŵƉĂĐƚŝŶŐƚŚĞůĂďŽƌŵĂƌŬĞƚ͘tŚŝůĞŝƚƌĞŵĂŝŶƐƚŝŐŚƚĨŽƌŶŽǁ͕ƐŽŵĞ ĞŵƉůŽǇĞƌƐŚĂǀĞŶŽƚĞĚĂƐůŝŐŚƚĞĂƐŝŶŐŝŶƚŚĞŝƌĂďŝůŝƚǇƚŽĨŝŶĚǁŽƌŬĞƌƐ͘'ŽŝŶŐŝŶƚŽƚŚĞŚŽůŝĚĂǇƐ͕ŵĂŶǇŶĂƚŝŽŶĂůƌĞƚĂŝůĞƌƐŚĂǀĞ ƉƌŽũĞĐƚĞĚƐůŽǁĞƌƐĞĂƐŽŶĂůŚŝƌŝŶŐƚŚĂŶƉƌĞǀŝŽƵƐǇĞĂƌƐ͘dŚŝƐŵĂǇĂĨĨĞĐƚƵŶĞŵƉůŽǇŵĞŶƚƌĂƚĞƐŝŶƚŚĞƐĞĐŽŶĚƋƵĂƌƚĞƌ͘ 'ůŽďĂůĚŝƐƌƵƉƚŝŽŶƐĂůƐŽĐŽŶƚŝŶƵĞƚŽŝŵƉĂĐƚŽƵƌůŽĐĂů͕ƐƚĂƚĞ͕ĂŶĚŶĂƚŝŽŶĂůĞĐŽŶŽŵǇĚƵĞƚŽƐƵƉƉůǇĐŚĂŝŶƐ͕ŽŝůƐƵƉƉůŝĞƐ͕ ĞŶĞƌŐǇĐŽƐƚƐ͕ĂŶĚŝŶĨůĂƚŝŽŶ͘ŵƉůŽǇĞƌƐĐŝƚĞǁŽƌŬĞƌƐŚŽƌƚĂŐĞƐ͕ƐƵƉƉůǇĐŚĂŝŶŝƐƐƵĞƐĂŶĚƌŝƐŝŶŐĐŽƐƚƐĂƐƚŚĞďŝŐŐĞƐƚĐŚĂůůĞŶŐĞƐ ƚŽĚŽŝŶŐďƵƐŝŶĞƐƐƚŽĚĂǇ͘ dŚĞŝŵƉŽƌƚĂŶĐĞŽĨŵŽŶŝƚŽƌŝŶŐĞĐŽŶŽŵŝĐƚƌĞŶĚƐĂƚŐůŽďĂůĂƐǁĞůůĂƐůŽĐĂůůĞǀĞůƐďĞĐŽŵĞƐŝŶĐƌĞĂƐŝŶŐůǇŝŵƉŽƌƚĂŶƚĂƐƚŚĞ 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ƌĞĐŽǀĞƌǇͶƚŚĞĐŝƚǇŝƐĞƐƚŝŵĂƚĞĚƚŽĞŶĚƚŚĞǇĞĂƌĂƚĂŚŝƐƚŽƌŝĐŚŝŐŚŽĨΨϱϬŵŝůůŝŽŶŝŶƐĂůĞƐƚĂǆƌĞǀĞŶƵĞƐ͘DƵĐŚŽĨƚŚŝƐ 21April 4, 2023 Item #5 Page 54 of 195 ('city of Carlsbad ƌĞĐŽǀĞƌǇƌĞƐƵůƚĞĚĨƌŽŵƚŚĞĞĂƐŝŶŐŽĨƌĞƐƚƌŝĐƚŝŽŶƐĂŶĚƉĞŶƚͲƵƉĚĞŵĂŶĚ͘ƐǁĞŵŽǀĞĨŽƌǁĂƌĚŝŶƚŽĨŝƐĐĂůǇĞĂƌ ϮϬϮϮͲϮϯ͕ŵƵĐŚƵŶĐĞƌƚĂŝŶƚǇƌĞŵĂŝŶƐƐƵƌƌŽƵŶĚŝŶŐŵĂƌŬĞƚĂŶĚĞĐŽŶŽŵŝĐĐŽŶĚŝƚŝŽŶƐůŝŬĞŝŶĨůĂƚŝŽŶĂŶĚŝŵƉĂĐƚƐƚŽ ĚŝƐƉŽƐĂďůĞŝŶĐŽŵĞ͘ƐĂƌĞƐƵůƚ͕ĂĐŽŶƐĞƌǀĂƚŝǀĞĞƐƚŝŵĂƚĞŽĨΨϰϵ͘ϭŵŝůůŝŽŶŝƐďƵĚŐĞƚĞĚĨŽƌĨŝƐĐĂůǇĞĂƌϮϬϮϮͲϮϯǁŚŝĐŚ ƌĞƉƌĞƐĞŶƚƐĂĚĞĐƌĞĂƐĞŽĨΨϬ͘ϵŵŝůůŝŽŶ͕ŽƌϮй͕ŽǀĞƌĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮĞƐƚŝŵĂƚĞƐ͘ xdƌĂŶƐŝĞŶƚKĐĐƵƉĂŶĐǇdĂǆ;dKd͕ŽƌŚŽƚĞůƚĂǆͿǁĂƐƚŚĞƌĞǀĞŶƵĞĐĂƚĞŐŽƌǇŵŽƐƚĂĚǀĞƌƐĞůǇŝŵƉĂĐƚĞĚďǇKs/Ͳϭϵ͘&ƌŽŵ ŚŝƐƚŽƌŝĐŚŝŐŚƐŽĨΨϮϲŵŝůůŝŽŶŝŶĨŝƐĐĂůǇĞĂƌϮϬϭϴͲϭϵ͕ǇĞĂƌͲŽǀĞƌͲǇĞĂƌĚĞĐƌĞĂƐĞƐŽĨϮϳйĂŶĚϭϲйǁĞƌĞĞǆƉĞƌŝĞŶĐĞĚ͘Ɛ ŽĨůĂƐƚǇĞĂƌ͕dKdǁĂƐĞǆƉĞĐƚĞĚƚŽŝŶĐƌĞĂƐĞĂƉƉƌŽǆŝŵĂƚĞůǇϰϳй͕ŵĂƌŬŝŶŐƚŚĞďĞŐŝŶŶŝŶŐŽĨĂŶĂŶƚŝĐŝƉĂƚĞĚϯͲǇĞĂƌ ƌĞĐŽǀĞƌǇ͘,ŽǁĞǀĞƌ͕ƚŚŝƐƌĞĐŽǀĞƌǇǁĂƐĂĐĐĞůĞƌĂƚĞĚǁŝƚŚƚŚĞĞĂƐŝŶŐŽĨƌĞƐƚƌŝĐƚŝŽŶƐĂŶĚƉĞŶƚͲƵƉĚĞŵĂŶĚǁŚŝĐŚ ƌĞƐƵůƚĞĚŝŶdKdƌĞǀĞŶƵĞƐƌĞĂĐŚŝŶŐŶĞǁŚŝƐƚŽƌŝĐŚŝŐŚƐ͘/ŶĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮdKdŝƐĞƐƚŝŵĂƚĞĚĂƚĂƉƉƌŽǆŝŵĂƚĞůǇ 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dƌĂŶƐĨĞƌƐŽƵƚŽĨƚŚĞ'ĞŶĞƌĂů&ƵŶĚĂƌĞďƵĚŐĞƚĞĚĂƚΨϭϯ͘ϲŵŝůůŝŽŶ͕ĂΨϲ͘ϱŵŝůůŝŽŶŝŶĐƌĞĂƐĞĨƌŽŵƚŚĞƉƌŝŽƌĨŝƐĐĂůǇĞĂƌ͘dŚŝƐ ŝŶĐƌĞĂƐĞƌĞƐƵůƚĞĚĨƌŽŵĂƚĞŵƉŽƌĂƌǇŚĂůƚŽŶƚŚĞĂŶŶƵĂůĐĂƉŝƚĂůƉƌŽũĞĐƚĨƵŶĚŝŶŐƚƌĂŶƐĨĞƌƐŝŶĨŝƐĐĂůǇĞĂƌϮϬϮϬͲϮϭĚƵĞƚŽ ƵŶĐĞƌƚĂŝŶƚǇƐƵƌƌŽƵŶĚŝŶŐƚŚĞƉĂŶĚĞŵŝĐ͘ 22April 4, 2023 Item #5 Page 55 of 195 ('city of Carlsbad ĚĚŝŶŐƚŽƚŚĞĂĚŽƉƚĞĚďƵĚŐĞƚŽĨΨϭϵϴ͘ϰŵŝůůŝŽŶĨŽƌƚŚĞ'ĞŶĞƌĂů&ƵŶĚ͕ĨƵŶĚƐǁŝůůďĞĐĂƌƌŝĞĚŽǀĞƌƚŽĨŝƐĐĂůǇĞĂƌϮϬϮϮͲϮϯ͗ ĂƉƉƌŽǆŝŵĂƚĞůǇΨϭϰ͘ϳŵŝůůŝŽŶŝŶƵŶƐƉĞŶƚĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮďƵĚŐĞƚĞĚĞǆƉĞŶĚŝƚƵƌĞƐĂŶĚĂƉƉƌŽǆŝŵĂƚĞůǇΨϭϮ͘ϮŵŝůůŝŽŶŝŶ ŽƉĞŶĞŶĐƵŵďƌĂŶĐĞƐĂƐŽĨ:ƵŶĞϯϬ͕ϮϬϮϭ͘ ƵƌŝŶŐ ƚŚĞ ĐƵƌƌĞŶƚ ĨŝƐĐĂů ǇĞĂƌ͕ ƚŚĞ ƵŶĂƐƐŝŐŶĞĚ ĨƵŶĚ ďĂůĂŶĐĞ ŝŶƚŚĞ 'ĞŶĞƌĂů &ƵŶĚ ŝŶĐƌĞĂƐĞĚ ďǇ Ψϭϭ͘ϰ ŵŝůůŝŽŶ ƚŽ ΨϭϭϬ͘ϳŵŝůůŝŽŶ͘ WƌŽũĞĐƚĞĚƌĞǀĞŶƵĞƐĂƌĞĐƵƌƌĞŶƚůǇƐƵĨĨŝĐŝĞŶƚƚŽďƵŝůĚƚŚĞĂƉƉƌŽǀĞĚƉƌŽũĞĐƚƐůŝƐƚĞĚŝŶƚŚĞĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮ/W͘ dŚĞĐŝƚǇ͛ƐďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐƌĞĨůĞĐƚƚŚĞĨŽůůŽǁŝŶŐ͗ tĂƚĞƌƌĞǀĞŶƵĞƐĂƌĞĞǆƉĞĐƚĞĚƚŽŝŶĐƌĞĂƐĞĨƌŽŵƌĂƚĞŝŶĐƌĞĂƐĞƐƚĂƌƚŝŶŐDĂƌĐŚϮϬϮϮŝŶĂĚĚŝƚŝŽŶƚŽĂƐůŝŐŚƚŝŶĐƌĞĂƐĞŝŶ ĚĞŵĂŶĚĚƵĞƚŽĐƵƐƚŽŵĞƌŐƌŽǁƚŚǁŚŝĐŚŵĂǇĚĞĐƌĞĂƐĞďĂƐĞĚŽŶǁĂƚĞƌĐŽŶƐĞƌǀĂƚŝŽŶĞĨĨŽƌƚƐ͘ dŚĞĞĨĨĞĐƚŝǀĞŝŶĐƌĞĂƐĞŝŶƉƵƌĐŚĂƐĞĐŽƐƚƐĨŽƌDtŝƐƉƌŽũĞĐƚĞĚƚŽďĞĂƉƉƌŽǆŝŵĂƚĞůǇϱ͘ϱй͘dŚĞĐŽƐƚŽĨǁĂƚĞƌƉƵƌĐŚĂƐĞĚ ĨƌŽŵƚŚĞ^ĂŶŝĞŐŽŽƵŶƚǇtĂƚĞƌƵƚŚŽƌŝƚǇŝƐƉƌŽũĞĐƚĞĚƚŽŝŶĐƌĞĂƐĞĚƵĞƚŽŝŶĐƌĞĂƐĞƐŝŶDĞƚƌŽƉŽůŝƚĂŶtĂƚĞƌŝƐƚƌŝĐƚ͛Ɛ ǁĂƚĞƌƌĂƚĞƐ͘dŚŝƐǁĂƐŽĨĨƐĞƚďǇĂƌĞĨƵŶĚĨƌŽŵƐŚĂƌĞŽĨĚĂŵĂŐĞƐĂǁĂƌĚĞĚĨŽƌƵŶůĂǁĨƵůůǇĂƐƐĞƐƐĞĚƌĂƚĞƐŽĨΨϭ͘ϴŵŝůůŝŽŶ ĐŽŵďŝŶĞĚǁŝƚŚŵĂŝŶƚĂŝŶŝŶŐƌĞƐĞƌǀĞďĂůĂŶĐĞƐĚƵƌŝŶŐĨŝƐĐĂůǇĞĂƌϮϬϮϭͲϮϮ͘ƌĞĐĞŶƚĐŽƐƚŽĨƐĞƌǀŝĐĞƐƚƵĚǇƐĞƚƌĂƚĞŝŶĐƌĞĂƐĞƐ ďĞŐŝŶŶŝŶŐŝŶDĂƌĐŚϮϬϮϮƚŚƌŽƵŐŚϮϬϮϰďĂƐĞĚŽŶŝŶĐƌĞĂƐĞĚƉƵƌĐŚĂƐĞƌĂƚĞƐ͕ĐĂƉŝƚĂůƌĞƉĂŝƌĐŽƐƚƐĂŶĚŝŶĐƌĞĂƐĞƐƚŽĐŽƐƚŽĨ ŵĂƚĞƌŝĂůƐ͘ tĂƐƚĞǁĂƚĞƌƌĂƚĞƐŝŶĐƌĞĂƐĞĚϮϬйďĞŐŝŶŶŝŶŐŝŶDĂƌĐŚϮϬϮϮǁŝƚŚƉůĂŶŶĞĚŝŶĐƌĞĂƐĞƐďĂƐĞĚŽŶĂƌĞĐĞŶƚĐŽƐƚƐƚƵĚǇ͘dŚĞ ŝŶĐƌĞĂƐĞƐĂƌĞŶĞĞĚĞĚƚŽŝŶǀĞƐƚŝŶŵĂŝŶƚĂŝŶŝŶŐǁĂƐƚĞǁĂƚĞƌŝŶĨƌĂƐƚƌƵĐƚƵƌĞƚŚĂƚŚĂƐƌĞĂĐŚĞĚƚŚĞĞŶĚŽĨŝƚƐĞǆƉĞĐƚĞĚůŝĨĞĂŶĚ ŝŶĐƌĞĂƐĞƐŝŶĐŽƐƚŽĨŵĂƚĞƌŝĂůƐĂŶĚƐƵƉƉůŝĞƐŶĞĞĚĞĚƚŽŽƉĞƌĂƚĞƐǇƐƚĞŵƐ͘ ^ŽůŝĚtĂƐƚĞƌĞǀĞŶƵĞƐĂƌĞƉƌŽũĞĐƚĞĚƚŽŝŶĐƌĞĂƐĞŵŽĚĞƌĂƚĞůǇ͕ĂŶĚƚŚĞĨƵŶĚĞǆƉĞĐƚƐƚŽƌƵŶĂƐůŝŐŚƚĚĞĨŝĐŝƚĚƵĞƚŽŝŶĐƌĞĂƐŝŶŐ ǁĂƐƚĞŵĂŶĂŐĞŵĞŶƚƌĞƋƵŝƌĞŵĞŶƚƐŝŵƉŽƐĞĚďǇƚŚĞƐƚĂƚĞ͘^ƵĨĨŝĐŝĞŶƚƌĞƐĞƌǀĞƐĂƌĞĂďůĞƚŽƐƵƐƚĂŝŶƚŚĞŝŶĐƌĞĂƐĞĐŽƐƚƐǁŝƚŚŽƵƚ ƐŝŐŶŝĨŝĐĂŶƚƉƌŝĐĞŝŶĐƌĞĂƐĞƐŝŶƚŚĞƐŚŽƌƚƚĞƌŵ͘ dŚĞ'ŽůĨŽƵƌƐĞ&ƵŶĚƉƌŽũĞĐƚĞĚĂƐůŝŐŚƚŝŶĐƌĞĂƐĞŝŶƌĞǀĞŶƵĞƐĨƌŽŵĂŶŝŶĐƌĞĂƐĞŝŶƌĂƚĞƐŝŶ:ƵůǇϮϬϮϮĨƵƌƚŚĞƌĚƌŝǀĞŶ ĐŽŶƚŝŶƵĞĚĚĞŵĂŶĚĂŶĚĂƌĞƚƵƌŶŽĨƉƌŝǀĂƚĞĞǀĞŶƚƐ͘ƐĂƌĞƐƵůƚ͕ƚŚĞŽƉĞƌĂƚŝŽŶĞǆƉĞĐƚĞĚƚŽĐŽŶƚŝŶƵĞƚŽƐĞĞŝŵƉƌŽǀĞŵĞŶƚƐ ŝŶƚŚĞŝƌĐĂƐŚĨůŽǁƐŐŽŝŶŐĨŽƌǁĂƌĚ͘ ŽŶƚĂĐƚŝŶŐƚŚĞŝƚǇ͛Ɛ&ŝŶĂŶĐŝĂůDĂŶĂŐĞŵĞŶƚ dŚŝƐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝƐĚĞƐŝŐŶĞĚƚŽƉƌŽǀŝĚĞƚŚĞƌĞƐŝĚĞŶƚƐ͕ƚĂǆƉĂǇĞƌƐ͕ĐƵƐƚŽŵĞƌƐ͕ŝŶǀĞƐƚŽƌƐ͕ĂŶĚĐƌĞĚŝƚŽƌƐǁŝƚŚĂŐĞŶĞƌĂů ŽǀĞƌǀŝĞǁŽĨƚŚĞĐŝƚǇ͛ƐĨŝŶĂŶĐĞƐĂŶĚƚŽĚĞŵŽŶƐƚƌĂƚĞƚŚĞĐŝƚǇ͛ƐĂĐĐŽƵŶƚĂďŝůŝƚǇĨŽƌƚŚĞŵŽŶĞǇŝƚƌĞĐĞŝǀĞƐ͘/ĨǇŽƵŚĂǀĞĂŶǇ ƋƵĞƐƚŝŽŶƐĂďŽƵƚƚŚŝƐƌĞƉŽƌƚŽƌŶĞĞĚĂĚĚŝƚŝŽŶĂůŝŶĨŽƌŵĂƚŝŽŶ͕ĐŽŶƚĂĐƚƚŚĞ&ŝŶĂŶĐĞĞƉĂƌƚŵĞŶƚ͕ϭϲϯϱ&ĂƌĂĚĂǇǀĞŶƵĞ͕ ĂƌůƐďĂĚ͕ĂůŝĨŽƌŶŝĂϵϮϬϬϴ͕ϰϰϮͲϯϯϵͲϮϰϯϬ͕ŽƌĨŝŶĚĂĚĚŝƚŝŽŶĂůŝŶĨŽƌŵĂƚŝŽŶĂƚǁǁǁ͘ĐĂƌůƐďĂĚĐĂ͘ŐŽǀ͘ 23April 4, 2023 Item #5 Page 56 of 195 ( City of Carlsbad 24April 4, 2023 Item #5 Page 57 of 195 a y et an • CITY OF CARLSBAD STATEMENT OF NET POSITION Governmental Business-Type Activities Activities Total Assets: Cash and investments 614,626,048$ 193,144,796$ 807,770,844$ Receivables: Accounts 1,838,626 12,951,740 14,790,366 Taxes 14,756,103 38,120 14,794,223 Notes and loans 24,430,300 - 24,430,300 Accrued interest 5,948,421 737,441 6,685,862 Leases 12,818,490 5,227,767 18,046,257 Other 1,410,454 658,697 2,069,151 Internal balances (1,624,476) 1,624,476 - Prepaid costs 2,611,446 138,167 2,749,613 Deposits 200,432 - 200,432 Due from other governments 1,135,702 1,703,213 2,838,915 Inventories 270,831 940,963 1,211,794 Land held for resale 1,633,816 - 1,633,816 Net OPEB asset 611,298 71,367 682,665 Capital assets: Land 160,619,596 9,330,718 169,950,314 Construction in progress 36,891,555 17,436,454 54,328,009 Buildings and other structures 138,281,470 41,391,888 179,673,358 Improvements other than buildings 103,902,694 56,202,412 160,105,106 Machinery and equipment 56,253,190 14,007,845 70,261,035 Infrastructure 752,669,574 404,212,142 1,156,881,716 Wastewater treatment facility - 64,373,642 64,373,642 Intangible assets 6,483,648 - 6,483,648 Right-of-use assets 25,067 - 25,067 Less accumulated depreciation/amortization (446,589,445) (239,024,221) (685,613,666) Total capital assets 808,537,349 367,930,880 1,176,468,229 Total Assets 1,489,204,840 585,167,627 2,074,372,467 Deferred Outflows of Resources: Deferred outflows of resources - pension related items 36,590,345 2,396,626 38,986,971 Deferred outflows of resources - OPEB related items 2,776,216 521,162 3,297,378 Total Deferred Outflows of Resources 39,366,561 2,917,788 42,284,349 Liabilities: Accrued liabilities 33,406,616 4,063,846 37,470,462 Accrued interest - 36,886 36,886 Unearned revenue 966,676 220,670 1,187,346 Deposits payable 8,344,345 1,101,216 9,445,561 Due to other governments 4,377 8,658,806 8,663,183 Estimated claims payable 16,909,815 - 16,909,815 Noncurrent liabilities: Net pension liability 72,807,703 4,815,423 77,623,126 Due within one year 2,331 1,698,146 1,700,477 Due in more than one year 20,046 10,745,391 10,765,437 Total Liabilities 132,461,909 31,340,384 163,802,293 Deferred Inflows of Resources: Deferred inflows of resources - pension related items 59,156,694 5,000,382 64,157,076 Deferred inflows of resources - OPEB related items 2,904,470 405,483 3,309,953 Deferred inflows of resources - lease related items 12,631,620 5,137,227 17,768,847 Total Deferred Inflows of Resources 74,692,784 10,543,092 85,235,876 Net Position: Net investment in capital assets 808,514,972 355,487,343 1,164,002,315 Restricted for: Affordable housing 41,413,098 - 41,413,098 Community services 4,800,600 - 4,800,600 Lighting and landscape districts 9,635,449 - 9,635,449 General government 806,261 - 806,261 Public safety 646,543 - 646,543 Capital projects 191,966,807 38,948,782 230,915,589 Unrestricted 263,632,978 151,765,814 415,398,792 Total Net Position 1,321,416,708$ 546,201,939$ 1,867,618,647$ JUNE 30, 2022 Primary Government See Notes to Financial Statement.25April 4, 2023 Item #5 Page 58 of 195 CITY OF CARLSBAD STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022 Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government 14,806,007$ 626,894$ 7,250,233$ 301,514$ Public safety 81,129,635 5,899,478 653,447 - Community services 58,953,827 8,670,737 12,259,274 342,149 Public works 39,204,155 4,246,837 218,816 9,278,762 Interest on long-term debt 14,535 - - - Total Governmental Activities 194,108,159 19,443,946 20,381,770 9,922,425 Business-Type Activities: Carlsbad Municipal Water District 53,597,583 49,193,720 170,432 499,460 SGolf Course 11,708,230 10,424,281 - - SWastewater 17,905,503 16,282,173 2,287 358,072 Solid Waste 4,737,745 3,684,383 10,265 - Total Business-Type Activities 87,949,061 79,584,557 182,984 857,532 Total Primary Government 282,057,220$ 99,028,503$ 20,564,754$ 10,779,957$ General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Real property transfer taxes Business license taxes Use of money and property Other Transfers Total General Revenues, and Transfers Change in Net Position Net Position at Beginning of Year Net Position at End of Year Program Revenues See Notes to Financial Statement.26April 4, 2023 Item #5 Page 59 of 195 Primary Government Governmental Business-Type Activities Activities Total (6,627,366)$ -$ (6,627,366)$ (74,576,710) - (74,576,710) (37,681,667) - (37,681,667) (25,459,740) - (25,459,740) (14,535) - (14,535) (144,360,018) - (144,360,018) - (3,733,971) (3,733,971) - (1,283,949) (1,283,949) - (1,262,971) (1,262,971) - (1,043,097) (1,043,097) - (7,323,988) (7,323,988) (144,360,018) (7,323,988) (151,684,006) 81,012,174 4,715,280 85,727,454 32,402,771 - 32,402,771 51,175,423 - 51,175,423 6,370,942 - 6,370,942 2,178,717 - 2,178,717 6,619,296 - 6,619,296 (22,062,942) (7,656,356) (29,719,298) 1,261,864 2,257,871 3,519,735 (1,315,748) 1,315,748 - 157,642,497 632,543 158,275,040 13,282,479 (6,691,445) 6,591,034 1,308,134,229 552,893,384 1,861,027,613 1,321,416,708$ 546,201,939$ 1,867,618,647$ Net (Expenses) Revenues and Changes in Net Position See Notes to Financial Statement.27April 4, 2023 Item #5 Page 60 of 195 CITY OF CARLSBAD BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2022 General Assets: Pooled cash and investments 158,349,259$ 12,127,754$ 92,158,241$ 113,950,826$ Receivables: Accounts 365,966 1,429,966 6,892 - Taxes 14,754,343 - 1,760 - Notes and loans 947,196 - - - Accrued interest 818,174 46,248 353,108 434,546 Leases 8,294,960 - 1,425,458 - Other 1,158,590 - - - Prepaid costs 50,968 - - - Deposits 200,432 - - - Due from other governments 162,706 - - - Advances to other funds 1,203,163 - 1,397,070 - Inventories 10,113 - - - Land held for resale - - - - Total Assets 186,315,870$ 13,603,968$ 95,342,529$ 114,385,372$ Liabilities, Deferred inflows of Resources, and Fund Balances: Liabilities: Accrued liabilities 7,234,929$ 13,059,041$ 110,788$ 1,220,866$ Unearned revenues 964,728 - - - Deposits payable 7,827,395 - 13,000 - Due to other governments - - - - Advances from other funds - - - - Total Liabilities 16,027,052 13,059,041 123,788 1,220,866 Deferred inflows of resources: Unavailable revenues 11,563 1,429,966 - - Lease related items 8,138,644 - 1,395,219 - Total Deferred inflows of Resources 8,150,207 1,429,966 1,395,219 - Fund Balances: Nonspendable: Inventory 10,113 - - - Prepaid costs 50,968 - - - Notes and loans 947,196 - - - Advances to other funds 1,203,163 - - - Restricted for: Affordable, low and moderate income housing - - - - Community services - - - - Lighting and landscaping districts - - - - General government - - - - Public safety - - - - Capital projects - - 93,823,522 - Committed to: Community activity grants 1,000,000 - - - Assigned to: Capital Projects - - - 113,164,506 General government 1,845,805 - - - Public safety 7,474,873 - - - Community services 5,043,458 - - - Public works 3,269,071 - - - Deposits 9,103,528 - - - Fleet maintenance 1,400,000 - - - Risk management 1,000,000 - - - Workers' compensation 8,208,252 - - - Safer streets local emergency 2,000,000 - - - Economic uncertainty 9,635,909 - - - Unassigned 109,946,275 (885,039) - - Total Fund Balances 162,138,611 (885,039) 93,823,522 113,164,506 Total Liabilities, deferred inflows of resources, and Fund Balances 186,315,870$ 13,603,968$ 95,342,529$ 114,385,372$ Capital Projects Funds Bridge Thoroughfare Districts (BTD) Community Facilities District #1 Infrastructure Replacement Fund See Notes to Financial Statement.28April 4, 2023 Item #5 Page 61 of 195 CITY OF CARLSBAD BALANCE SHEET GOVERNMENTAL FUNDSJUNE 30, 2022 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Leases Other Prepaid costs Deposits Due from other governments Advances to other funds Inventories Land held for resale Total Assets Liabilities, Deferred inflows of Resources, and Fund Balances: Liabilities: Accrued liabilities Unearned revenues Deposits payable Due to other governments Advances from other funds Total Liabilities Deferred inflows of resources: Unavailable revenues Lease related items Total Deferred inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Notes and loans Advances to other funds Restricted for: Affordable, low and moderate income housing Community services Lighting and landscaping districts General government Public safety Capital projects Committed to: Community activity grants Assigned to: Capital Projects General government Public safety Community services Public works Deposits Fleet maintenance Risk management Workers' compensation Safer streets local emergency Economic uncertainty Unassigned Total Fund Balances Total Liabilities, deferred inflows of resources, and Fund Balances Other Total Governmental Governmental Funds Funds 187,128,465$ 563,714,545$ 22,996 1,825,820 - 14,756,103 23,483,104 24,430,300 4,124,581 5,776,657 3,098,072 12,818,490 251,864 1,410,454 157,235 208,203 - 200,432 972,996 1,135,702 5,650,000 8,250,233 3,460 13,573 1,633,816 1,633,816 226,526,589$ 636,174,328$ 4,291,259$ 25,916,883$ 1,948 966,676 501,982 8,342,377 4,377 4,377 8,250,233 8,250,233 13,049,799 43,480,546 3,605,550 5,047,079 3,097,757 12,631,620 6,703,307 17,678,699 3,460 13,573 157,235 208,203 - 947,196 - 1,203,163 41,413,098 41,413,098 4,800,600 4,800,600 9,635,449 9,635,449 806,261 806,261 646,543 646,543 98,143,285 191,966,807 - 1,000,000 51,184,119 164,348,625 - 1,845,805 - 7,474,873 - 5,043,458 - 3,269,071 - 9,103,528 - 1,400,000 - 1,000,000 - 8,208,252 - 2,000,000 - 9,635,909 (16,567) 109,044,669 206,773,483 575,015,083 226,526,589$ 636,174,328$ See Notes to Financial Statement.29April 4, 2023 Item #5 Page 62 of 195 30April 4, 2023 Item #5 Page 63 of 195 CITY OF CARLSBAD RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2022 Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds 575,015,083$ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Capital assets, not being depreciated 197,360,455 Capital assets, being depreciated 1,017,231,025 Right to use leased assets 25,067 Less: accumulated depreciation/amortization (427,334,988) 787,281,559 Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds. Net pension liability (70,084,572) Net OPEB asset 558,119 Lease liability (22,377) (69,548,830) Difference between expected and actual experiences, assumptions changes and net differences between projected and actual earnings and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the statement of position. Deferred outflows - pension related 35,235,047 Deferred outflows - OPEB related 2,626,883 Deferred inflows - pension related (56,328,967) Deferred inflows - OPEB related (2,687,301) (21,154,338) Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities.5,047,079 Internal service funds are used by management to charge the costs of certain activities, such as equipment and technology replacement, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position.44,776,155 Net Position of Governmental Activities 1,321,416,708$ See Notes to Financial Statement.31April 4, 2023 Item #5 Page 64 of 195 CITY OF CARLSBAD STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 General Revenues: Taxes 178,762,522$ -$ 996,801$ -$ Licenses and permits 3,233,321 - - - Intergovernmental 7,868,957 - - - Contribution from property owners - - 459,861 - Charges for services 9,828,529 - - - Use of money and property (5,570,530) (518,574) (3,743,035) (4,882,683) Fines and forfeitures 342,948 - - - Contributions 26,226 - - - Miscellaneous 1,187,314 - - - Total Revenues 195,679,287 (518,574) (2,286,373) (4,882,683) Expenditures: Current: General government 21,995,629 - 58,064 - Less: interdepartmental charges (5,314,617) - - - Public safety 81,961,117 - - - Community services 44,972,128 - - - Public works 20,131,996 - - - Capital outlay 2,719,612 13,059,041 542,022 6,701,080 Debt service: Principal retirement 2,690 - - - Interest and fiscal charges - - - - Total Expenditures 166,468,555 13,059,041 600,086 6,701,080 Excess (Deficiency) of Revenues Over (Under) Expenditures 29,210,732 (13,577,615) (2,886,459) (11,583,763) Other Financing Sources (Uses): Transfers in 10,000 - - 383,800 Transfers out (26,927,804) - - - Proceeds from sale of capital asset - - - - Proceeds from leases 25,067 - - - Total Other Financing Sources (Uses) (26,892,737) - - 383,800 Net Change in Fund Balances 2,317,995 (13,577,615) (2,886,459) (11,199,963) Fund Balances, Beginning of Year 159,820,616 12,692,576 96,709,981 124,364,469 Fund Balances, End of Year 162,138,611$ (885,039)$ 93,823,522$ 113,164,506$ Capital Projects Funds Bridge Thoroughfare Districts (BTD) Community Facilities District #1 Infrastructure Replacement Fund See Notes to Financial Statement.32April 4, 2023 Item #5 Page 65 of 195 CITY OF CARLSBAD STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 Revenues: Taxes Licenses and permits Intergovernmental Contribution from property owners Charges for services Use of money and property Fines and forfeitures Contributions Miscellaneous Total Revenues Expenditures: Current: General government Less: interdepartmental charges Public safety Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Proceeds from leases Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Other Total Governmental Governmental Funds Funds 5,073,071$ 184,832,394$ - 3,233,321 13,064,283 20,933,240 2,739,702 3,199,563 5,130,988 14,959,517 (5,403,362) (20,118,184) 2,672 345,620 354,157 380,383 74,550 1,261,864 21,036,061 209,027,718 378,918 22,432,611 - (5,314,617) 263,971 82,225,088 14,519,101 59,491,229 1,924,494 22,056,490 23,992,646 47,014,401 - 2,690 14,535 14,535 41,093,665 227,922,427 (20,057,604) (18,894,709) 25,579,968 25,973,768 (260,912) (27,188,716) 199,679 199,679 - 25,067 25,518,735 (990,202) 5,461,131 (19,884,911) 201,312,352 594,899,994 206,773,483$ 575,015,083$ See Notes to Financial Statement.33April 4, 2023 Item #5 Page 66 of 195 34April 4, 2023 Item #5 Page 67 of 195 CITY OF CARLSBAD RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2022 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds (19,884,911)$ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays was less than depreciation expense in the current period. Capital outlay 41,874,701$ Loss on disposal of capital assets (1,487,736) Depreciation/amortization (22,824,158) 17,562,807 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as expenditures in the governmental funds. Changes in pension liabilities and related deferred outflows and inflows of resources 15,729,318 Changes in OPEB assets and related deferred outflows and inflows of resources 507,949 16,237,267 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.382,169 Internal service funds are used by management to charge the costs of certain activities, such as equipment and technology replacement, to individual funds. The net revenues of the internal service funds are reported with governmental activities.(1,014,853) Change in Net Position of Governmental Activities 13,282,479$ See Notes to Financial Statement.35April 4, 2023 Item #5 Page 68 of 195 CITY OF CARLSBAD STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2022 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Assets: Current: Cash and investments 133,925,207 41,795,736 17,423,853 $ 193,144,796$ 50,911,503 $ Receivables: Accounts, net of allowances 8,878,454 3,065,451 1,007,835 12,951,740 12,806 Taxes 38,120 - - 38,120 - Accrued interest 517,111 159,386 60,944 737,441 171,764 Lease 154,627 - 55,813 210,440 - Other - - 658,697 658,697 - Prepaid costs 54,666 - 83,501 138,167 2,403,243 Due from other governments 1,060,813 642,400 - 1,703,213 - Inventories 747,478 17,366 176,119 940,963 257,258 Total Current Assets 145,376,476 45,680,339 19,466,762 210,523,577 53,756,574 Noncurrent: Net OPEB asset 43,801 23,776 3,790 71,367 53,179 Lease receivable 3,716,647 - 1,300,680 5,017,327 - Capital assets Land 1,914,871 2,629,102 4,786,745 9,330,718 - Construction in progress 2,586,907 14,842,916 6,631 17,436,454 150,696 Buildings and other structures 21,221,437 - 20,170,451 41,391,888 - Improvements other than buildings 5,006,736 7,134,824 44,060,852 56,202,412 - Machinery and equipment 10,989,380 1,081,858 1,936,607 14,007,845 37,203,714 Infrastructure 263,641,244 140,570,898 404,212,142 - Wastewater treatment facility - 64,373,642 64,373,642 - Intangible assets - - - 3,155,837 Less accumulated depreciation (102,391,484) (89,373,278) (47,259,459) (239,024,221) (19,254,457) Total capital assets (net of accumulated depreciation) 202,969,091 141,259,962 23,701,827 367,930,880 21,255,790 Total Noncurrent Assets 206,729,539 141,283,738 25,006,297 373,019,574 21,308,969 Total Assets 352,106,015 186,964,077 44,473,059 583,543,151 75,065,543 Deferred Outflows of Resources: Deferred outflows of resources - pension related items 1,428,557 629,681 338,388 2,396,626 1,355,298 Deferred outflows of resources - OPEB related items 373,738 86,954 60,470 521,162 149,333 Total Deferred Outflows of Resources 1,802,295 716,635 398,858 2,917,788 1,504,631 Business-Type Activities - Enterprise Funds Carlsbad Municipal Water District Wastewater See Notes to Financial Statement.36April 4, 2023 Item #5 Page 69 of 195 CITY OF CARLSBAD STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2022 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Business-Type Activities - Enterprise Funds Carlsbad Municipal Water District Wastewater Liabilities: Current: Accrued liabilities 1,474,092 811,377 1,778,377 4,063,846 7,489,733 Accrued interest 36,886 - - 36,886 - Due to other governments 7,599,425 1,059,381 - 8,658,806 - Accrued claims and judgments - - - - 16,909,815 Loans payable 1,698,146 - - 1,698,146 - Total Current Liabilities 10,808,549 1,870,758 1,778,377 14,457,684 24,399,548 Noncurrent: Unearned revenues - 10,000 210,670 220,670 - Deposits payable 102,157 271,671 727,388 1,101,216 1,968 Net pension liability 2,870,329 1,265,187 679,907 4,815,423 2,723,131 Loans payable 10,745,391 - - 10,745,391 - Total Noncurrent Liabilities 13,717,877 1,546,858 1,617,965 16,882,700 2,725,099 Total Liabilities 24,526,426 3,417,616 3,396,342 31,340,384 27,124,647 Deferred Inflows of Resources: Deferred inflows of resources - pension related items 2,980,577 1,313,783 706,022 5,000,382 2,827,727 Deferred inflows of resources - OPEB related items 256,825 82,167 66,491 405,483 217,169 Deferred inflows of resources - lease related items 3,802,242 - 1,334,985 5,137,227 - Total Deferred Inflows of Resources 7,039,644 1,395,950 2,107,498 10,543,092 3,044,896 Net Position: Invested in capital assets 190,525,554 141,259,962 23,701,827 355,487,343 21,255,790 Restricted for capital projects 34,962,767 3,986,015 - 38,948,782 - Unrestricted 96,853,919 37,621,169 15,666,250 150,141,338 25,144,841 Total Net Position 322,342,240 182,867,146 39,368,077 544,577,463 46,400,631 Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 544,577,463$ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds 1,633,391 Current years' adjustments to reflect the consolidation of internal service activities related to enterprise funds 8,915 Net Position per Statement of Net Position 546,219,769$ See Notes to Financial Statement.37April 4, 2023 Item #5 Page 70 of 195 CITY OF CARLSBAD STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2022 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Operating Revenues: Sales and service charges 48,678,034$ -$ -$ 48,678,034$ -$ Wastewater service charges - 16,282,173 - 16,282,173 - Miscellaneous 1,893,698 90,514 272,404 2,256,616 1,016,078 Golf course operations - - 10,424,281 10,424,281 - Other charges for services 515,686 - 3,684,383 4,200,069 29,216,246 Total Operating Revenues 51,087,418 16,372,687 14,381,068 81,841,173 30,232,324 Operating Expenses: Administration and general 17,415,553 9,583,926 5,016,534 32,016,013 13,719,853 Encina plant operations 1,322,840 3,734,928 - 5,057,768 - Purchased water 28,108,107 - - 28,108,107 - Claims expense - - - - 10,988,610 Depreciation expense 6,489,394 4,584,296 3,401,019 14,474,709 3,412,501 Golf course operations - - 8,027,121 8,027,121 - Fuel and supplies - - - - 1,716,709 Small equipment purchases - - - - 722,307 Total Operating Expenses 53,335,894 17,903,150 16,444,674 87,683,718 30,559,980 Operating Income (Loss)(2,248,476) (1,530,463) (2,063,606) (5,842,545) (327,656) Nonoperating Revenues (Expenses): Taxes 4,715,280 - - 4,715,280 - Intergovernmental 170,432 2,287 10,265 182,984 1,072 Interest revenue 80,162 - 27,183 107,345 - Interest expense (256,428) - - (256,428) - Contributions - - - - 1,040,506 Income (loss) from property and investments (5,393,462) (1,798,526) (579,906) (7,771,894) (1,944,758) Gain (loss) on disposal of capital assets - - - - 307,868 Total Nonoperating Revenues (Expenses) (684,016) (1,796,239) (542,458) (3,022,713) (595,312) Income (Loss) Before transfers and capital contributions (2,932,492) (3,326,702) (2,606,064) (8,865,258) (922,968) Transfers in 1,048,262 - 322,000 1,370,262 - Transfers out - (46,534) (7,980) (54,514) (100,800) Capital contibutions Capital restricted fees and grants 237,254 221,836 - 459,090 - Developer constructed assets 262,206 145,684 - 407,890 - Changes in Net Position (1,384,770) (3,005,716) (2,292,044) (6,682,530) (1,023,768) Net Position: Beginning of Year 323,727,010 185,872,862 41,660,121 551,259,993 47,424,399 End of Fiscal Year 322,342,240$ 182,867,146$ 39,368,077$ 544,577,463$ 46,400,631$ Reconciliation of Changes in Net Position to the Statement of Activities: Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds (6,682,530)$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds (8,915) Changes in Net Position of Business-Type Activities per Statement of Activities (6,691,445)$ Business-Type Activities - Enterprise Funds Carlsbad Municipal Water District Wastewater See Notes to Financial Statement.38April 4, 2023 Item #5 Page 71 of 195 CITY OF CARLSBAD STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2022 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Cash Flows from Operating Activities: Cash received from customers and users 48,710,496$ 17,756,279$ 14,142,996$ 80,609,771$ -$ Cash received from/(paid to) interfund service provided - - - - 29,208,546 Cash paid to suppliers for goods and services (36,346,795) (14,769,890) (8,244,715) (59,361,400) (2,643,809) Cash paid to employees for services (12,283,385) (2,511,154) (5,009,676) (19,804,215) (14,613,111) Claims and premiums paid - - - - (8,224,816) Cash received from (payments to) others 1,893,698 90,514 272,404 2,256,616 1,016,078 Net Cash Provided (Used) by Operating Activities 1,974,014 565,749 1,161,009 3,700,772 4,742,888 Cash Flows from Non-Capital Financing Activities: Cash transfers in 1,048,262 - 322,000 1,370,262 (100,800) Cash transfers out - (46,534) (7,980) (54,514) - Repayment received from other funds 1,048,262 - - 1,048,262 - Repayment made to other funds - (46,534) (7,980) (54,514) - Contributions 170,432 - - 170,432 - Net Cash Provided (Used) by Non-Capital Financing Activities 2,266,956 (93,068) 306,040 2,479,928 (100,800) Cash Flows from Capital and Related Financing Activities: Proceeds from capital debt 352,459 - - 352,459 - Capital contributions 262,206 367,520 - 629,726 1,061,329 Acquisition and construction of capital assets (4,542,892) (2,594,621) (38,118) (7,175,631) (5,032,311) Principal paid on capital debt (1,658,821) - - (1,658,821) - Interest paid on capital debt (263,818) - - (263,818) - Capital grants 1,783,823 - 10,265 1,794,088 1,072 Property taxes received 4,707,134 - - 4,707,134 - Proceeds from sales of capital assets - - - - 307,868 Lease items (69,032) - (21,508) (90,540) - Net Cash Provided (Used) by Capital and Related Financing Activities 571,059 (2,227,101) (49,361) (1,705,403) (3,662,042) Investment earnings (5,357,851) (1,799,891) (558,765) (7,716,507) (1,974,277) Net Cash Provided (Used) by Investing Activities (5,357,851) (1,799,891) (558,765) (7,716,507) (1,974,277) Net Increase (Decrease) in Cash and Cash Equivalents (545,822) (3,554,311) 858,923 (3,241,210) (994,231) Cash and Cash Equivalents at Beginning of Year 134,471,029 45,350,047 16,564,930 196,386,006 51,905,734 Cash and Cash Equivalents at End of Year 133,925,207$ 41,795,736$ 17,423,853$ 193,144,796$ 50,911,503$ Income (Loss) Before transfers and capital contributions Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(2,248,476)$ (1,530,463)$ (2,063,606)$ (5,842,545)$ (327,656)$ Capital contibutions Cash Flows from Investing Activities: Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 6,489,394 4,584,296 3,401,019 14,474,709 3,412,501 (Increase) decrease in accounts receivable (482,691) (744,148) (148,011) (1,374,850) (7,700) (Increase) decrease in inventories (89,481) (2,848) (35,407) (127,736) 74,810 (Increase) decrease in due from other governments - 2,302,760 - 2,302,760 - (Increase) decrease in prepaid expense (12,763) 171 (20,961) (33,553) (276,247) Increase (decrease) in accrued liabilities (8,136,444) (2,410,448) (161,226) (10,708,118) 109,223 Increase (decrease) in due to other governments 7,511,993 (1,085,495) - 6,426,498 - Increase (decrease) in deposits payable (533) (84,506) 246,382 161,343 - Increase (decrease) in unearned revenue - - 182,343 182,343 Increase (decrease) in OPEB liability 167,050 231,804 72,389 471,243 383,419 Increase (decrease) in pension liability (1,224,035) (695,374) (311,913) (2,231,322) (1,389,256) Increase (decrease) in claims and judgments - - - - 2,763,794 Total Adjustments 4,222,490 2,096,212 3,224,615 9,543,317 5,070,544 Net Cash Provided (Used) by Operating Activities 1,974,014$ 565,749$ 1,161,009$ 3,700,772$ 4,742,888$ Business-Type Activities - Enterprise Funds Carlsbad Municipal Water District Wastewater See Notes to Financial Statement.39April 4, 2023 Item #5 Page 72 of 195 CITY OF CARLSBAD STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2022 Custodial Funds Assets: Current assets: Pooled cash and investments 9,286,471$ 1,180,420$ Receivables: Assessments 27,806 - Accrued interest 54,510 4,501 Noncurrent assets:Loans receivable - 4,504,261 Restricted assets: Cash and investments 4,683,715 - Total Assets 14,052,502 5,689,182 Liabilities: Accrued liabilities 31,988 - Accrued interest - 34,450 Long-term liabilities: Due in one year - 950,000 Due in more than one year - 1,000,000 Total Liabilities 31,988 1,984,450 Net Position: Restricted for: Individuals, organizations and other governments 14,020,514 - Redevelopment obligation retirement purposes - 3,704,732 Total Net Position 14,020,514$ 3,704,732$ Private Purpose Trust Fund See Notes to Financial Statements.40April 4, 2023 Item #5 Page 73 of 195 CITY OF CARLSBAD STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2022 Custodial Funds Additions: Taxes 1,373,266$ 848,207$ Interest on housing loans - 112,502 Income (loss) from property and investments (346,443) (57,857) Assessment district collections 10,374,305 - Total Additions 11,401,128 902,852 Deductions: Distributions to beneficiaries 3,151,352 - Administrative expenses 163,951 7,284 Bond interest expense and fees 1,662,438 113,515 Principal expense 3,610,000 - Total Deductions 8,587,741 120,799 Changes in Net Position 2,813,387 782,053 Net Position - Beginning of the Year 11,207,127 2,922,679 Net Position - End of the Year 14,020,514$ 3,704,732$ Private Purpose Trust Fund See Notes to Financial Statements.41April 4, 2023 Item #5 Page 74 of 195 42April 4, 2023 Item #5 Page 75 of 195 &,7<2)&$5/6%$' 127(672),1$1&,$/67$7(0(176 -81( 1RWH 6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV 7KH&LW\RI&DUOVEDG&DOLIRUQLD³FLW\´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DPRXQWRIUHSUHVHQWLQJORDQVUHFHLYHGIURPWKHFLW\¶V*HQHUDO)XQGWKDW ZHUHXVHGWRIXQGWKHLQLWLDOFRXUVHFRQVWUXFWLRQDQGVRPHRSHUDWLQJFRVWV)RUILQDQFLDO VWDWHPHQWSXUSRVHVWKHVHORDQVZHUHUHFODVVLILHGWR³7UDQVIHUV,Q´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pril 4, 2023 Item #5 Page 115 of 195 &,7<2)&$5/6%$' 127(672),1$1&,$/67$7(0(176&217,18(' -81( 1RWH &RPPLWPHQWVDQG&RQWLQJHQFLHV&RQWLQXHG F (QFXPEUDQFHV $VRI-XQHFLW\FRPPLWPHQWVIRURXWVWDQGLQJHQFXPEUDQFHVSXUFKDVHRUGHUV 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WKH\DUHGLVWULEXWHGWRRWKHUXQLWVRIVWDWHDQGORFDOJRYHUQPHQW2Q-DQXDU\WKH &LW\&RXQFLOHOHFWHGWREHFRPHWKH6XFFHVVRU$JHQF\IRUWKHIRUPHUUHGHYHORSPHQWDJHQF\ LQDFFRUGDQFHZLWKWKHELOODVSDUWRI&LW\&RXQFLO5HVROXWLRQ1RDQG+RXVLQJDQG 5HGHYHORSPHQW&RPPLVVLRQ5HVROXWLRQ1R 83April 4, 2023 Item #5 Page 116 of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pril 4, 2023 Item #5 Page 117 of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pril 4, 2023 Item #5 Page 118 of 195 86April 4, 2023 Item #5 Page 119 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON STATEMENT GENERAL FUND YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 159,820,616$ 159,820,616$ 159,820,616$ -$ Resources (Inflows): Taxes 151,814,000 151,814,000 178,762,522 26,948,522 Licenses and permits 1,465,000 1,465,000 3,233,321 1,768,321 Intergovernmental 7,928,763 8,154,091 7,868,957 (285,134) Charges for services 6,210,000 6,466,374 9,828,529 3,362,155 Use of money and property 4,894,125 4,894,925 (5,570,530) (10,465,455) Fines and forfeitures 406,000 406,000 342,948 (63,052) Contributions 46,000 46,000 26,226 (19,774) Miscellaneous 834,025 966,332 1,187,314 220,982 Transfers in 10,000 10,000 10,000 - Amounts Available for Appropriation 333,428,529 334,043,338 355,534,970 21,491,632 Charges to Appropriation (Outflow): General government 23,968,509 27,200,469 21,995,629 5,204,840 Less: interdepartmental charges (5,206,349) (5,216,349) (5,314,617) 98,268 Public safety 81,396,279 86,935,883 81,961,117 4,974,766 Community services 50,023,648 55,234,846 44,972,128 10,262,718 Public works 21,163,968 25,051,317 20,131,996 4,919,321 Capital outlay 882,285 3,091,620 2,719,612 372,008 Transfers out 7,148,000 26,927,804 26,927,804 - Total Charges to Appropriations 179,376,340 219,225,590 193,396,359 25,829,231 Budgetary Fund Balance, June 30 154,052,189$ 114,817,748$ 162,138,611$ 47,320,863$ 87April 4, 2023 Item #5 Page 120 of 195 CITY OF CARLSBAD AGENT MULTIPLE-EMPLOYER MISCELLANEOUS PLAN SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY/(ASSET) AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Fiscal year 2022 2021 2020 2019 Measurement period ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total Pension Liability Service cost 8,267,207$ 7,748,623$ 7,393,365$ 7,642,062$ Interest on total pension liability 29,773,920 28,392,127 27,175,110 25,874,546 Differences between expected and actual experience 3,459,759 1,167,225 2,338,341 (3,023,977) Changes in assumptions - - - (2,662,243) Benefit payments, including refunds of employee contributions (21,477,657) (19,590,424) (18,193,803) (16,887,970) Net change in total pension liability 20,023,229 17,717,551 18,713,013 10,942,418 Total pension liability - beginning 419,563,912 401,846,361 383,133,348 372,190,930 Total pension liability - ending (a)439,587,141 419,563,912 401,846,361 383,133,348 Plan Fiduciary Net Position Contributions - employer 16,551,765 10,637,969 17,745,975 22,114,923 Contributions - employee 3,436,290 3,338,003 3,040,423 3,005,761 Net investment income 74,476,234 15,901,834 19,551,424 22,720,698 Benefit payments (21,477,657) (19,590,424) (18,193,803) (16,887,970) Administration Expense (331,533) (454,014) (213,503) (1,218,072) Net change in plan fiduciary net position 72,655,099 9,833,368 21,930,516 29,735,340 Plan fiduciary net position - beginning 331,885,303 322,051,935 300,121,419 270,386,079 Plan fiduciary net position - ending (b)404,540,402 331,885,303 322,051,935 300,121,419 Net pension liability/(asset) - ending (a)-(b) = (c)35,046,739$ 87,678,609$ 79,794,426$ 83,011,929$ 92.03% 79.10% 80.14%78.33% Covered Payroll (d)43,884,424$ 42,138,677$ 39,130,545$ 36,214,870$ Net pension liability/(asset) as a percentage of Covered Payroll (c/d)79.86% 208.07% 203.92%229.22% Notes to Schedule: Benefit Changes: Change of Assumptions: Plan fiduciary net position as a percentage of the total pension liability/(asset) (b/a) The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2020 valuation date. This applies for voluntary benefit changes, as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). None in 2019-2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore, only eight years are shown. 88April 4, 2023 Item #5 Page 121 of 195 2018 2017 2016 2015 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 7,836,970$ 6,836,445$ 6,674,982$ 6,908,307$ 25,085,808 24,192,948 23,142,961 21,793,340 (3,079,012) (2,605,228) 1,300,520 - 20,988,178 - (5,737,798) - (15,327,609) (14,344,528) (12,791,734) (11,614,664) 35,504,335 14,079,637 12,588,931 17,086,983 336,686,595 322,606,958 310,018,027 292,931,044 372,190,930 336,686,595 322,606,958 310,018,027 14,677,334 9,562,926 8,434,882 8,004,157 2,820,046 2,833,466 2,703,715 3,039,951 26,893,994 1,330,196 5,362,753 35,526,156 (15,327,609) (14,344,528) (12,791,734) (11,614,664) (359,620) (147,759) (572,277) - 28,704,145 (765,699) 3,137,339 34,955,600 241,681,934 242,447,633 239,310,294 204,354,694 270,386,079 241,681,934 242,447,633 239,310,294 101,804,851$ 95,004,661$ 80,159,325$ 70,707,733$ 72.65% 71.78% 75.15%77.19% 35,845,774$ 35,141,036$ 33,609,704$ 32,960,515$ 284.01% 270.35% 238.50%214.52% 89April 4, 2023 Item #5 Page 122 of 195 CITY OF CARLSBAD AGENT MULTIPLE-EMPLOYER MISCELLANEOUS PLAN SCHEDULE OF CONTRIBUTIONS AS OF FISCAL YEAR ENDING JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2022 2021 2020 2019 MISCELLANEOUS: Actuarially Determined Contribution 11,286,334$ 11,098,619$ 10,633,467$ 11,966,625$ Contribution in Relation to the Actuarially Determined Contributions (14,518,210) (16,501,759) (10,633,467) (17,745,975) Contribution Deficiency (Excess)(3,231,876)$ (5,403,140)$ -$ (5,779,350)$ Covered Payroll 44,068,269$ 43,884,424$ 42,138,677$ 39,130,545$ Contributions as a Percentage of Covered Payroll 32.94% 37.60% 25.23%45.35% Note to Schedule: Valuation Date:June 30, 2019 Methods and assumptions used to determine contribution rates: Single and Agent Employers Entry age normal Amortization method/Period For details, see June 30, 2019 Funding Valuation Report Assets valuation method Inflation 2.50% Salary Increases Payroll Growth 2.75% Investment rate of return Retirement age Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore, only nine years are shown. Varies by entry age and service Market value of assets. For details, see June 30, 2019 Funding Valuation Report 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. 90April 4, 2023 Item #5 Page 123 of 195 2018 2017 2016 2015 2014 10,456,115$ 10,338,549$ 9,562,926$ 8,434,882$ 8,004,157$ (22,114,923) (14,677,334) (9,562,926) (8,434,882) (8,004,157) (11,658,808)$ (4,338,785)$ -$ -$ -$ 36,214,870$ 35,845,774$ 35,141,036$ 33,609,704$ 32,960,515$ 61.07% 40.95% 27.21% 25.10%24.28% 91April 4, 2023 Item #5 Page 124 of 195 CITY OF CARLSBAD AGENT MULTIPLE-EMPLOYER SAFETY PLAN SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY/(ASSET) AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Fiscal year 2022 2021 2020 2019 Measurement period ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total Pension Liability Service cost 7,535,523$ 6,578,451$ 6,317,755$ 5,985,155$ Interest on total pension liability 23,741,151 22,410,699 21,269,278 20,248,091 Differences between expected and actual experience 5,936,553 4,071,899 2,425,561 2,726,755 Changes in assumptions - - - (1,332,336) Benefit payments, including refunds of employee contributions (17,230,615) (16,362,437) (15,288,250) (13,797,333) Net change in total pension liability 19,982,612 16,698,612 14,724,344 13,830,332 Total pension liability - beginning 330,955,050 314,256,438 299,532,094 285,701,762 Total pension liability - ending (a)350,937,662 330,955,050 314,256,438 299,532,094 Plan Fiduciary Net Position Contributions - employer 14,253,531 10,321,371 23,119,896 8,675,370 Contributions - employee 2,861,027 2,581,027 2,380,740 2,169,504 Net investment income 56,569,028 12,053,297 14,331,677 17,250,148 Benefit payments (17,230,615) (16,362,437) (15,288,250) (13,797,333) Administration Expense (251,893) (343,854) (156,148) (935,892) Net change in plan fiduciary net position 56,201,078 8,249,404 24,387,915 13,361,797 Plan fiduciary net position - beginning 252,160,197 243,910,793 219,522,878 206,161,081 Plan fiduciary net position - ending (b)308,361,275 252,160,197 243,910,793 219,522,878 Net pension liability/(asset) - ending (a)-(b) = (c)42,576,387$ 78,794,853$ 70,345,645$ 80,009,216$ 87.87% 76.19% 77.62%73.29% Covered Payroll (d)26,392,461$ 24,695,745$ 22,328,023$ 20,768,094$ Net pension liability/(asset) as a percentage of Covered Payroll (c/d)161.32% 319.06% 315.06%385.25% Notes to Schedule: Benefit Changes: Change of Assumptions: Plan fiduciary net position as a percentage of the total pension liability/(asset) (b/a) The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2020 valuation date. This applies for voluntary benefit changes, as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). None in 2019-2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore, only eight years are shown. 92April 4, 2023 Item #5 Page 125 of 195 2018 2017 2016 2015 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 5,825,080$ 5,209,900$ 5,048,529$ 5,425,425$ 19,305,098 18,557,781 17,775,039 16,876,220 (705,417) (941,378) 638,786 - 16,661,943 - (4,517,683) - (13,034,483) (12,197,119) (11,264,768) (10,529,479) 28,052,221 10,629,184 7,679,903 11,772,166 257,649,541 247,020,357 239,340,454 227,568,288 285,701,762 257,649,541 247,020,357 239,340,454 12,379,181 6,836,098 6,491,856 6,141,746 1,922,500 1,933,363 1,726,785 1,853,365 20,385,351 990,545 4,107,305 27,905,516 (13,034,483) (12,197,119) (11,264,768) (10,529,479) (270,020) (114,168) (210,908) - 21,382,529 (2,551,281) 850,270 25,371,148 184,778,552 187,329,833 186,479,563 161,108,415 206,161,081 184,778,552 187,329,833 186,479,563 79,540,681$ 72,870,989$ 59,690,524$ 52,860,891$ 72.16% 71.72% 75.84%77.91% 18,965,085$ 18,514,525$ 18,378,393$ 18,013,144$ 419.41% 393.59% 324.79%293.46% 93April 4, 2023 Item #5 Page 126 of 195 CITY OF CARLSBAD AGENT MULTIPLE-EMPLOYER SAFETY PLAN SCHEDULE OF CONTRIBUTIONS AS OF FISCAL YEAR ENDING JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2022 2021 2020 2019 SAFETY: Actuarially Determined Contribution 10,144,367$ 9,656,334$ 10,323,721$ 8,899,136$ Contribution in Relation to the Actuarially Determined Contributions (13,344,367) (14,253,194) (10,323,721) (23,119,790) Contribution Deficiency (Excess)(3,200,000)$ (4,596,860)$ -$ (14,220,654)$ Covered Payroll 25,604,904$ 26,392,461$ 24,695,745$ 22,328,023$ Contributions as a Percentage of Covered Payroll 52.12% 54.00% 41.80%103.55% Note to Schedule: Valuation Date:June 30, 2019 Methods and assumptions used to determine contribution rates: Single and Agent Employers Entry age normal Amortization method/Period For details, see June 30, 2019 Funding Valuation Report Assets valuation method Market value of assets. For details, see June 30, 2019 Funding Valuation Report Inflation 2.50% Salary Increases Payroll Growth 2.75% Investment rate of return Retirement age Mortality Varies by entry age and service 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore, only nine years are shown. 94April 4, 2023 Item #5 Page 127 of 195 2018 2017 2016 2015 2014 8,658,116$ 7,695,135$ 6,836,098$ 6,491,856$ 6,141,746$ (8,658,116) (12,379,181) (6,836,098) (6,491,856) (6,141,746) -$ (4,684,046)$ -$ -$ -$ 20,768,094$ 18,965,085$ 18,514,525$ 18,378,393$ 18,013,144$ 41.69% 65.27% 36.92% 35.32%34.10% 95April 4, 2023 Item #5 Page 128 of 195 SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Fiscal year 2022 2021 2020 2019 2018 Measurement period ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability Service cost 669,651$ 657,941$ 536,124$ 520,509$ 505,348$ Interest on the total OPEB liability 1,347,382 1,301,716 1,167,930 1,113,646 1,064,137 Actual and expected experience difference (922,167) - (203,116) - - Changes in assumptions 625,021 (281,685) 1,232,232 - - Benefit payments (1,074,741) (999,866) (887,656) (860,894) (893,899) Net change in total OPEB liability 645,146 678,106 1,845,514 773,261 675,586 Total OPEB liability - beginning (2)19,116,041 18,437,935 16,592,421 15,819,160 15,143,574 Total OPEB liability - ending (a)19,761,187 19,116,041 18,437,935 16,592,421 15,819,160 Plan Fiduciary Net Position Contribution - employer 1,180,559 1,085,866 978,302 860,894 747,772 Net investment income 4,387,820 541,912 887,132 1,064,150 1,281,487 Benefit payments (1,074,741) (999,866) (887,656) (860,894) (893,899) Other (11,858) (7,493) (3,078) (24,735) - Net change in plan fiduciary net position 4,481,780 620,419 974,700 1,039,415 1,135,360 Plan fiduciary net position - beginning 15,962,072 15,341,653 14,366,953 13,327,538 12,192,178 Plan fiduciary net position - ending (b)20,443,852 15,962,072 15,341,653 14,366,953 13,327,538 Total OPEB Liability/(Assets) - ending (a) - (b) (682,665)$ 3,153,969$ 3,096,282$ 2,225,468$ 2,491,622$ Plan fiduciary net position as a percentage of the total OPEB liability 103.45% 83.50% 83.21% 86.59% 84.25% Covered-employee payroll 70,276,885$ 66,834,422$ 61,458,568$ 56,982,964$ 54,810,859$ Total OPEB liability as a percentage of covered-employee payroll -0.97% 4.72% 5.04% 3.91% 4.55% Changes in assumptions: The discount rate is 6.25% as of June 30, 2022 CITY OF CARLSBAD (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 96April 4, 2023 Item #5 Page 129 of 195 CITY OF CARLSBAD SCHEDULE OF CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2022 2021 2020 2019 2018 768,612$ 962,244$ 941,129$ 788,383$ 770,693$ (1,102,669) (1,180,557) (1,085,864) (978,302) (860,894) (334,057)$ (218,313)$ (144,735)$ (189,919)$ (90,201)$ 90,161,596$ 70,276,885$ 66,834,422$ 61,458,568$ 56,982,964$ 1.22% 1.68% 1.62% 1.59% 1.51% Notes to Schedule: Methods and assumptions used to determine contributions: Actuarial Cost Method Amortization Valuation Method/Period Inflation 2.50% Salary Increases Payroll Growth 2.75% Investment Rate of Return Retirement Age Mortality The probabilities of mortality are based on the CalPERS Experience Study for the period from 2000-2019. Mortality Improvement Post-retirement mortality projected fully generational with Scale MP-2021. Varies by Entry Age and Service base on the CalPERS Experience Study for the period from 2000-2019. 7.0% net of pension plan investment and administrative expenses, including inflation Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered-employee payroll Contributions as a percentage of covered-employee payroll (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2022 were from the June 30, 2021 actuarial Entry Age, Level Percent of Pay Level dollar over 25-year fixed period The probabilities of retirement are based on the CalPERS Experience Study for the period from 2000-2019. 97April 4, 2023 Item #5 Page 130 of 195 CITY OF CARLSBAD COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Assets: Pooled cash and investments 17,277,677$ 556,638$ 2,912,160$ 9,725,510$ 1,182,088$ Receivables: Accounts, net of allowances - - - 22,996 - Notes and loans 23,483,104 - - - - Accrued interest 3,626,143 33,219 11,079 33,926 4,508 Leases - 3,098,072 - - - Other - - - 88,471 - Prepaid costs - - - - - Due from other governments - 100,008 - - - Advances to other funds - - - - - Inventories - - 3,460 - - Land held for resale 324,223 1,309,593 - - - Total Assets 44,711,147$ 5,097,530$ 2,926,699$ 9,870,903$ 1,186,596$ Liabilities, Deferred inflows of Resources, and Fund Balances: Liabilities: Accrued liabilities 1,863$ 89,139$ 33,273$ 235,454$ -$ Unearned revenues - - - - - Deposits payable - - - - - Due to other governments - - - - - Due to other funds - - - - - Advances from other funds - - - - 1,203,163 Total Liabilities 1,863 89,139 33,273 235,454 1,203,163 Deferred inflows of resources: Unavailable revenues 3,560,256 - - - - Lease related items - 3,097,757 - - - Total Deferred inflows of Resources 3,560,256 3,097,757 - - - Fund Balances: Nonspendable: Inventory - - 3,460 - - Prepaid costs - - - - - Restricted for: Affordable, low and moderate income housing 41,149,028 - - - - Community services - 1,910,634 2,889,966 - - Lighting and landscaping districts - - - 9,635,449 - General government - - - - - Public safety - - - - - Capital projects - - - - - Assigned to: Capital Projects - - - - - Unassigned - - - - (16,567) Total Fund Balances 41,149,028 1,910,634 2,893,426 9,635,449 (16,567) Total Liabilities, deferred inflows of resources, and Fund Balances 44,711,147$ 5,097,530$ 2,926,699$ 9,870,903$ 1,186,596$ Affordable Housing Community Development Block Grant Donations Financing Districts Habitat and Agricultural Management Special Revenue Funds 98April 4, 2023 Item #5 Page 131 of 195 CITY OF CARLSBAD COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Assets: Pooled cash and investments Receivables: Accounts, net of allowances Notes and loans Accrued interest Leases Other Prepaid costs Due from other governments Advances to other funds Inventories Land held for resale Total Assets Liabilities, Deferred inflows of Resources, and Fund Balances: Liabilities: Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred inflows of resources: Unavailable revenues Lease related items Total Deferred inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Restricted for: Affordable, low and moderate income housing Community services Lighting and landscaping districts General government Public safety Capital projects Assigned to: Capital Projects Unassigned Total Fund Balances Total Liabilities, deferred inflows of resources, and Fund Balances Capital Projects Funds 757,735$ 601,669$ 184,663$ 122,371$ 3,361,087$ - - - - - - - - - - 2,890 2,396 522 - 9,074 - - - - - 75,665 - - - - - - - 1,069 - - 48,161 92,118 - - - - - - - - - - - - - - - - - 836,290$ 652,226$ 277,303$ 123,440$ 3,370,161$ 30,029$ 3,735$ 35,135$ 20,289$ -$ - 1,948 - - - - - 40,877 34,926 426,179 - - 4,377 - - - - - - - - - - - - 30,029 5,683 80,389 55,215 426,179 - - - - - - - - - - - - - - - - - - - - - - - 1,069 - - - 196,914 67,156 - - - - - - - - - - - 806,261 - - - - - 646,543 - - - - - - - 2,943,982 - - - - - - - - - - 806,261 646,543 196,914 68,225 2,943,982 836,290$ 652,226$ 277,303$ 123,440$ 3,370,161$ Special Revenue Funds Other Special Revenue Funds Police Grants and Asset Forfeiture Section 8 Rental Assistance Tyler Court Apartments Assessment and Other Districts 99April 4, 2023 Item #5 Page 132 of 195 CITY OF CARLSBAD COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Assets: Pooled cash and investments Receivables: Accounts, net of allowances Notes and loans Accrued interest Leases Other Prepaid costs Due from other governments Advances to other funds Inventories Land held for resale Total Assets Liabilities, Deferred inflows of Resources, and Fund Balances: Liabilities: Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred inflows of resources: Unavailable revenues Lease related items Total Deferred inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Restricted for: Affordable, low and moderate income housing Community services Lighting and landscaping districts General government Public safety Capital projects Assigned to: Capital Projects Unassigned Total Fund Balances Total Liabilities, deferred inflows of resources, and Fund Balances 18,705,062$ 45,369,822$ 1,729,131$ 14,030,098$ 4,562,374$ - - - - - - - - - - 71,334 - 6,717 53,503 17,398 - - - - - - - - - - - - - - - 620,526 - 35,319 - - - - - - - - - - - - - - - - - 19,396,922$ 45,369,822$ 1,771,167$ 14,083,601$ 4,579,772$ 190,991$ 2,837,697$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - 5,650,000 - 190,991 2,837,697 - 5,650,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 19,205,931 - 1,771,167 8,433,601 4,579,772 - 42,532,125 - - - - - - - - 19,205,931 42,532,125 1,771,167 8,433,601 4,579,772 19,396,922$ 45,369,822$ 1,771,167$ 14,083,601$ 4,579,772$ Gas Tax General Capital Construction Grants and Other Capital Project Funds Park Development Planned Local Drainage Facilities Capital Projects Funds 100April 4, 2023 Item #5 Page 133 of 195 CITY OF CARLSBAD COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Assets: Pooled cash and investments Receivables: Accounts, net of allowances Notes and loans Accrued interest Leases Other Prepaid costs Due from other governments Advances to other funds Inventories Land held for resale Total Assets Liabilities, Deferred inflows of Resources, and Fund Balances: Liabilities: Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred inflows of resources: Unavailable revenues Lease related items Total Deferred inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Restricted for: Affordable, low and moderate income housing Community services Lighting and landscaping districts General government Public safety Capital projects Assigned to: Capital Projects Unassigned Total Fund Balances Total Liabilities, deferred inflows of resources, and Fund Balances 27,966,622$ 9,118,256$ 20,254,375$ 8,711,127$ 187,128,465$ - - - - 22,996 - - - - 23,483,104 106,649 34,765 77,239 33,219 4,124,581 - - - - 3,098,072 - 87,728 - - 251,864 - - - 156,166 157,235 - 76,864 - - 972,996 5,650,000 - - - 5,650,000 - - - - 3,460 - - - - 1,633,816 33,723,271$ 9,317,613$ 20,331,614$ 8,900,512$ 226,526,589$ 246,037$ 265,824$ 209,441$ 92,352$ 4,291,259$ - - - - 1,948 - - - - 501,982 - - - - 4,377 - - - - - - - 1,397,070 - 8,250,233 246,037 265,824 1,606,511 92,352 13,049,799 - 45,294 - - 3,605,550 - - - - 3,097,757 - 45,294 - - 6,703,307 - - - - 3,460 - - - 156,166 157,235 - - - - 41,413,098 - - - - 4,800,600 - - - - 9,635,449 - - - - 806,261 - - - - 646,543 33,477,234 9,006,495 18,725,103 - 98,143,285 - - - 8,651,994 51,184,119 - - - - (16,567) 33,477,234 9,006,495 18,725,103 8,808,160 206,773,483 33,723,271$ 9,317,613$ 20,331,614$ 8,900,512$ 226,526,589$ Total Government Funds Public Facilities Construction Sales Tax/TransNet Traffic Impact Projects Technology Investment Capital Capital Projects Funds 101April 4, 2023 Item #5 Page 134 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 Revenues: Taxes -$ -$ -$ -$ -$ Intergovernmental 460 1,036,043 - - - Contribution from property owners 342,149 - - - 274,652 Charges for services 911,558 - 12,781 2,523,577 - Use of money and property (491,217) 176,252 (124,807) (380,467) (48,487) Fines and forfeitures - - - - - Contributions - - 354,157 - - Miscellaneous - - 11,137 21,690 - Total Revenues 762,950 1,212,295 253,268 2,164,800 226,165 Expenditures: Current: General government - - - - - Public safety - - - - - Community services 187,513 1,429,464 235,464 1,884,225 - Public works - - - 1,260,694 - Capital outlay - - 16,922 - - Debt service: Interest and fiscal charges - - - - 14,535 Total Expenditures 187,513 1,429,464 252,386 3,144,919 14,535 Excess (Deficiency) of Revenues Over (Under) Expenditures 575,437 (217,169) 882 (980,119) 211,630 Other Financing Sources (Uses): Transfers in 200,912 - - 1,390,000 - Transfers out (50,000) - - - - Proceeds from sale of capital asset - 199,679 - - - Total Other Financing Sources (Uses) 150,912 199,679 - 1,390,000 - Net Change in Fund Balances 726,349 (17,490) 882 409,881 211,630 Fund Balances, Beginning of Year 40,422,679 1,928,124 2,892,544 9,225,568 (228,197) Fund Balances, End of Year 41,149,028$ 1,910,634$ 2,893,426$ 9,635,449$ (16,567)$ Affordable Housing Community Development Block Grant Donations Financing Districts Habitat and Agricultural Management Special Revenue Funds 102April 4, 2023 Item #5 Page 135 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 Revenues: Taxes Intergovernmental Contribution from property owners Charges for services Use of money and property Fines and forfeitures Contributions Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community services Public works Capital outlay Debt service: Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Capital Projects Funds -$ -$ -$ -$ -$ - 455,280 9,968,003 - - 301,514 - - - - - - - 649,402 - (32,839) (27,169) (3,720) 3,264 (100,711) - 2,672 - - - - - - - - - - 28,336 - - 268,675 430,783 9,992,619 652,666 (100,711) 378,918 - - - - - 263,971 - - - - - 10,081,418 701,017 - - - - - - 24,925 8,770 - 13,111 2,587 - - - - - 403,843 272,741 10,081,418 714,128 2,587 (135,168) 158,042 (88,799) (61,462) (103,298) - - 50,000 - - - - - (200,912) - - - - - - - - 50,000 (200,912) - (135,168) 158,042 (38,799) (262,374) (103,298) 941,429 488,501 235,713 330,599 3,047,280 806,261$ 646,543$ 196,914$ 68,225$ 2,943,982$ Assessment and Other Districts Police Grants and Asset Forfeiture Section 8 Rental Assistance Tyler Court Apartments Other Special Revenue Funds Special Revenue Funds 103April 4, 2023 Item #5 Page 136 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 Revenues: Taxes Intergovernmental Contribution from property owners Charges for services Use of money and property Fines and forfeitures Contributions Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community services Public works Capital outlay Debt service: Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 5,073,071$ -$ -$ -$ -$ - - 35,319 - - - - 44,960 536,232 180,839 - - - - - (796,766) - (76,692) (598,855) (195,262) - - - - - - - - - - - 13,387 - - - 4,276,305 13,387 3,587 (62,623) (14,423) - - - - - - - - - - - - - - - 600,000 - 49,674 - 490 2,303,425 12,606,427 26,669 1,196 93,670 - - - - - 2,903,425 12,606,427 76,343 1,196 94,160 1,372,880 (12,593,040) (72,756) (63,819) (108,583) - 13,283,056 - - - (10,000) - - - - - - - - - (10,000) 13,283,056 - - - 1,362,880 690,016 (72,756) (63,819) (108,583) 17,843,051 41,842,109 1,843,923 8,497,420 4,688,355 19,205,931$ 42,532,125$ 1,771,167$ 8,433,601$ 4,579,772$ Planned Local Drainage Facilities Gas Tax General Capital Construction Grants and Other Capital Project Funds Park Development Capital Projects Funds 104April 4, 2023 Item #5 Page 137 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 Revenues: Taxes Intergovernmental Contribution from property owners Charges for services Use of money and property Fines and forfeitures Contributions Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community services Public works Capital outlay Debt service: Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Total Governmental Funds -$ -$ -$ -$ 5,073,071$ - 1,569,178 - - 13,064,283 581,057 - 478,299 - 2,739,702 - 1,033,670 - - 5,130,988 (1,128,213) (387,501) (873,000) (317,172) (5,403,362) - - - - 2,672 - - - - 354,157 - - - - 74,550 (547,156) 2,215,347 (394,701) (317,172) 21,036,061 - - - - 378,918 - - - - 263,971 - - - - 14,519,101 9,268 - 4,368 - 1,924,494 2,635,240 1,922,954 2,806,082 1,530,668 23,992,646 - - - - 14,535 2,644,508 1,922,954 2,810,450 1,530,668 41,093,665 (3,191,664) 292,393 (3,205,151) (1,847,840) (20,057,604) - - - 10,656,000 25,579,968 - - - - (260,912) - - - - 199,679 - - - 10,656,000 25,518,735 (3,191,664) 292,393 (3,205,151) 8,808,160 5,461,131 36,668,898 8,714,102 21,930,254 - 201,312,352 33,477,234$ 9,006,495$ 18,725,103$ 8,808,160$ 206,773,483$ Public Facilities Construction Sales Tax/TransNet Traffic Impact Projects Technology Investment Capital Capital Projects Funds 105April 4, 2023 Item #5 Page 138 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE AFFORDABLE HOUSINGYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 40,422,679$ 40,422,679$ 40,422,679$ -$ Resources (Inflows): Intergovernmental - - 460 460 Contribution from property owners 140,000 140,000 342,149 202,149 Charges for services 30,000 30,000 911,558 881,558 Use of money and property 345,000 345,000 (491,217) (836,217) Transfers in - 200,912 200,912 - Amounts Available for Appropriation 40,937,679 41,138,591 41,386,541 247,950 Charges to Appropriation (Outflow): Community services 761,197 765,592 187,513 578,079 Transfers out 50,000 50,000 50,000 - Total Charges to Appropriations 811,197 815,592 237,513 578,079 Budgetary Fund Balance, June 30 40,126,482$ 40,322,999$ 41,149,028$ 826,029$ 106April 4, 2023 Item #5 Page 139 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANTYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,928,124$ 1,928,124$ 1,928,124$ -$ Resources (Inflows): Intergovernmental 520,000 1,337,368 1,036,043 (301,325) Use of money and property 500 500 176,252 175,752 Proceeds from sale of capital asset - - 199,679 199,679 Amounts Available for Appropriation 2,448,624 3,265,992 3,340,098 74,106 Charges to Appropriation (Outflow): Community services 638,299 2,542,936 1,429,464 1,113,472 Total Charges to Appropriations 638,299 2,542,936 1,429,464 1,113,472 Budgetary Fund Balance, June 30 1,810,325$ 723,056$ 1,910,634$ 1,187,578$ 107April 4, 2023 Item #5 Page 140 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE DONATIONSYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,892,544$ 2,892,544$ 2,892,544$ -$ Resources (Inflows): Charges for services - - 12,781 12,781 Use of money and property 30,523 30,523 (124,807) (155,330) Contributions 254,000 254,000 354,157 100,157 Miscellaneous 8,000 8,000 11,137 3,137 Amounts Available for Appropriation 3,185,067 3,185,067 3,145,812 (39,255) Charges to Appropriation (Outflow): Community services 684,211 717,362 235,464 481,898 Capital outlay - - 16,922 (16,922) Total Charges to Appropriations 684,211 717,362 252,386 464,976 Budgetary Fund Balance, June 30 2,500,856$ 2,467,705$ 2,893,426$ 425,721$ 108April 4, 2023 Item #5 Page 141 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE FINANCING DISTRICTSYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 9,225,568$ 9,225,568$ 9,225,568$ -$ Resources (Inflows): Charges for services 2,464,351 2,464,351 2,523,577 59,226 Use of money and property 109,000 109,000 (380,467) (489,467) Miscellaneous - 7,524 21,690 14,166 Transfers in 1,190,000 1,390,000 1,390,000 - Amounts Available for Appropriation 12,988,919 13,196,443 12,780,368 (416,075) Charges to Appropriation (Outflow): Community services 2,312,970 2,610,695 1,884,225 726,470 Public works 1,542,492 1,671,528 1,260,694 410,834 Total Charges to Appropriations 3,855,462 4,282,223 3,144,919 1,137,304 Budgetary Fund Balance, June 30 9,133,457$ 8,914,220$ 9,635,449$ 721,229$ 109April 4, 2023 Item #5 Page 142 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE HABITAT AND AGRICULTURAL MANAGEMENTYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (228,197)$ (228,197)$ (228,197)$ -$ Resources (Inflows): Contribution from property owners 15,000 15,000 274,652 259,652 Use of money and property 15,000 15,000 (48,487) (63,487) Miscellaneous - - - - Amounts Available for Appropriation (198,197) (198,197) (2,032) 196,165 Charges to Appropriation (Outflow): Public works - 66,818 - 66,818 Debt service: Interest and fiscal charges - 14,535 14,535 - Total Charges to Appropriations - 81,353 14,535 66,818 Budgetary Fund Balance, June 30 (198,197)$ (279,550)$ (16,567)$ 262,983$ 110April 4, 2023 Item #5 Page 143 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE OTHER SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 941,429$ 941,429$ 941,429$ -$ Resources (Inflows): Contribution from property owners 285,000 285,000 301,514 16,514 Use of money and property 10,000 10,000 (32,839) (42,839) Amounts Available for Appropriation 1,236,429 1,236,429 1,210,104 (26,325) Charges to Appropriation (Outflow): General government 345,000 473,445 378,918 94,527 Capital outlay - - 24,925 (24,925) Total Charges to Appropriations 345,000 473,445 403,843 69,602 Budgetary Fund Balance, June 30 891,429$ 762,984$ 806,261$ 43,277$ 111April 4, 2023 Item #5 Page 144 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE POLICE GRANTS AND ASSET FORFEITUREYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 488,501$ 488,501$ 488,501$ -$ Resources (Inflows): Intergovernmental 185,000 387,667 455,280 67,613 Use of money and property 4,000 4,000 (27,169) (31,169) Fines and forfeitures 14,000 14,000 2,672 (11,328) Amounts Available for Appropriation 691,501 894,168 919,284 25,116 Charges to Appropriation (Outflow): General government 95,000 95,000 - 95,000 Public safety 341,106 617,847 263,971 353,876 Capital outlay - 96,623 8,770 87,853 Total Charges to Appropriations 436,106 809,470 272,741 536,729 Budgetary Fund Balance, June 30 255,395$ 84,698$ 646,543$ 561,845$ 112April 4, 2023 Item #5 Page 145 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE SECTION 8 RENTAL ASSISTANCEYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 235,713$ 235,713$ 235,713$ -$ Resources (Inflows): Intergovernmental 7,490,000 9,965,876 9,968,003 2,127 Use of money and property - - (3,720) (3,720) Miscellaneous 8,000 28,311 28,336 25 Transfers in 50,000 50,000 50,000 - Amounts Available for Appropriation 7,783,713 10,279,900 10,278,332 (1,568) Charges to Appropriation (Outflow): Community services 7,898,443 10,103,203 10,081,418 21,785 Total Charges to Appropriations 7,898,443 10,103,203 10,081,418 21,785 Budgetary Fund Balance, June 30 (114,730)$ 176,697$ 196,914$ 20,217$ 113April 4, 2023 Item #5 Page 146 of 195 CITY OF CARLSBAD BUDGETARY COMPARISON SCHEDULE TYLER COURT APARTMENTSYEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 330,599$ 330,599$ 330,599$ -$ Resources (Inflows): Charges for services 641,891 641,891 649,402 7,511 Use of money and property 2,509 2,509 3,264 755 Amounts Available for Appropriation 974,999 974,999 983,265 8,266 Charges to Appropriation (Outflow): Community services 521,190 621,773 701,017 (79,244) Capital outlay 119,797 119,797 13,111 106,686 Transfers out - 200,912 200,912 - Total Charges to Appropriations 640,987 942,482 915,040 27,442 Budgetary Fund Balance, June 30 334,012$ 32,517$ 68,225$ 35,708$ 114April 4, 2023 Item #5 Page 147 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF NET POSITION NON-MAJOR PROPRIETARY FUNDS JUNE 30, 2022 Totals Assets: Current: Cash and investments 5,173,626$ 12,250,227$ 17,423,853$ Receivables: Accounts 15,132 992,703 1,007,835 Accrued interest 14,228 46,716 60,944 Lease 55,813 - 55,813 Other 11,343 647,354 658,697 Prepaid costs 83,501 - 83,501 Inventories 176,119 - 176,119 Total Current Assets 5,529,762 13,937,000 19,466,762 Noncurrent: Net OPEB asset - 3,790 3,790 Lease receivable 1,300,680 - 1,300,680 Capital Assets Land 4,786,745 - 4,786,745 Construction in progress 6,631 - 6,631 Buildings and other structures 20,170,451 - 20,170,451 Improvements other than buildings 44,060,852 - 44,060,852 Machinery and equipment 1,936,607 - 1,936,607 Less accumulated depreciation (47,259,459) - (47,259,459) Total capital assets (net of accumulated depreciation)23,701,827 - 23,701,827 Total Noncurrent Assets 25,002,507 3,790 25,006,297 Total Assets 30,532,269 13,940,790 44,473,059 Deferred Outflows of Resources: Deferred outflows of resources - pension related items - 338,388 338,388 Deferred outflows of resources - OPEB related items - 60,470 60,470 Total Deferred Outflows of Resources - 398,858 398,858 Liabilities: Current: Accrued liabilities 570,334 1,208,043 1,778,377 Total Current Liabilities 570,334 1,208,043 1,778,377 Noncurrent: Uneared revenues - 210,670 210,670 Deposits payable 727,388 - 727,388 Net pension liability - 679,907 679,907 Total Noncurrent Liabilities 727,388 890,577 1,617,965 Total Liabilities 1,297,722 2,098,620 3,396,342 Deferred Inflows of Resources: Deferred inflows of resources - pension related items - 706,022 706,022 Deferred inflows of resources - OPEB related items - 66,491 66,491 Deferred inflows of resources - lease related items 1,334,985 - 1,334,985 Total Deferred Inflows of Resources 1,334,985 772,513 2,107,498 Net Position: Invested in capital assets 23,701,827 - 23,701,827 Unrestricted 4,197,735 11,468,515 15,666,250 Total Net Position 27,899,562$ 11,468,515$ 39,368,077$ Business-Type Activities - Enterprise Funds Golf Course Solid Waste 115April 4, 2023 Item #5 Page 148 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2022 Totals Operating Revenues: Golf course operations 10,424,281$ -$ 10,424,281$ Other charges for services - 3,684,383 3,684,383 Miscellaneous 25,896 246,508 272,404 Total Operating Revenues 10,450,177 3,930,891 14,381,068 Operating Expenses: Administration and general 280,090 4,736,444 5,016,534 Depreciation expense 3,401,019 - 3,401,019 Golf course operations 8,027,121 - 8,027,121 Total Operating Expenses 11,708,230 4,736,444 16,444,674 Operating Income (Loss)(1,258,053) (805,553) (2,063,606) Nonoperating Revenues (Expenses): Intergovernmental - 10,265 10,265 Interest revenue 27,183 - 27,183 Income (loss) from property and investments (55,008) (524,898) (579,906) Total Nonoperating Revenues (Expenses)(27,825) (514,633) (542,458) Income (Loss) Before Transfers (1,285,878) (1,320,186) (2,606,064) Transfers in - 322,000 322,000 Transfers out - (7,980) (7,980) Changes in Net Position (1,285,878) (1,006,166) (2,292,044) Net Position: Beginning of Year 29,185,440 12,474,681 41,660,121 End of Fiscal Year 27,899,562$ 11,468,515$ 39,368,077$ Business-Type Activities - Enterprise Funds Golf Course Solid Waste 116April 4, 2023 Item #5 Page 149 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2022 Totals Cash Flows from Operating Activities: Cash received from customers and users 10,411,356$ 3,731,640$ 14,142,996$ Cash paid to suppliers for goods and services (7,940,205) (304,510) (8,244,715) Cash paid to employees for services (19,901) (4,989,775) (5,009,676) Cash received from (payments to) others 25,896 246,508 272,404 Net Cash Provided (Used) by Operating Activities 2,477,146 (1,316,137) 1,161,009 Cash Flows from Non-Capital Financing Activities: Cash transfers out - (7,980) (7,980) Cash transfers in - 322,000 322,000 Repayment made to other funds - (7,980) (7,980) Net Cash Provided (Used) by Non-Capital Financing Activities - 306,040 306,040 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (38,118) - (38,118) Capital Grants - 10,265 10,265 Lease items (21,508) - (21,508) Net Cash Provided (Used) by Capital and Related Financing Activities (59,626) 10,265 (49,361) Cash Flows from Investing Activities: Interest received (35,157) (523,608) (558,765) Net Cash Provided (Used) by Investing Activities (35,157) (523,608) (558,765) Net Increase (Decrease) in Cash and Cash Equivalents 2,382,363 (1,523,440) 858,923 Cash and Cash Equivalents at Beginning of Year 2,791,263 13,773,667 16,564,930 Cash and Cash Equivalents at End of Year 5,173,626$ 12,250,227$ 17,423,853$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(1,258,053)$ (805,553)$ (2,063,606)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 3,401,019 - 3,401,019 (Increase) decrease in accounts receivable (12,925) (135,086) (148,011) (Increase) decrease in inventories (35,407) - (35,407) (Increase) decrease in prepaid expense (20,961) - (20,961) Increase (decrease) in accrued liabilities 143,284 (304,510) (161,226) Increase (decrease) in deposits payable 246,382 - 246,382 Increase (decrease) in unearned revenue - 182,343 182,343 Increase (decrease) in OPEB liability 72,389 72,389 Increase (decrease) in pension liability 13,807 (325,720) (311,913) Total Adjustments 3,735,199 (510,584) 3,224,615 Net Cash Provided (Used) by Operating Activities 2,477,146$ (1,316,137)$ 1,161,009$ Business-Type Activities - Enterprise Funds Golf Course Solid Waste 117April 4, 2023 Item #5 Page 150 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2022 Totals Assets: Current: Cash and investments 19,010,881$ 5,870,411$ 8,038,530$ 4,711,454$ 13,280,227$ 50,911,503$ Receivables: Accounts, net of allowances 12,806 - - - - 12,806 Accrued interest 72,497 - 30,657 17,967 50,643 171,764 Prepaid costs - - 2,403,243 - - 2,403,243 Inventories 257,258 - - - - 257,258 Total Current Assets 19,353,442 5,870,411 10,472,430 4,729,421 13,330,870 53,756,574 Noncurrent: Net OPEB assets 14,403 - 35,509 2,490 777 53,179 Captial Assets Construction in progress - - 150,696 - - 150,696 Machinery and equipment 31,776,392 - 5,427,322 - - 37,203,714 Intangible assets - - 3,155,837 - - 3,155,837 Less accumulated depreciation (15,559,905) - (3,694,552) - - (19,254,457) Total capital assets (net of accumulated depreciation) 16,216,487 - 5,039,303 - - 21,255,790 Total Noncurrent Assets 16,230,890 - 5,074,812 2,490 777 21,308,969 Total Assets 35,584,332 5,870,411 15,547,242 4,731,911 13,331,647 75,065,543 Deferred Outflows of Resources: Deferred outflows of resources - pension related items 256,408 - 983,768 71,515 43,607 1,355,298 Deferred outflows of resources - OPEB related items 33,905 - 106,050 6,566 2,812 149,333 Total Deferred Outflows of Resources 290,313 - 1,089,818 78,081 46,419 1,504,631 Liabilities: Current: Accrued liabilities 231,140 5,870,411 1,122,510 258,932 6,740 7,489,733 Accrued claims and judgments - - - 4,669,826 12,239,989 16,909,815 Total Current Liabilities 231,140 5,870,411 1,122,510 4,928,758 12,246,729 24,399,548 Noncurrent: Deposits payable 968 - - 1,000 - 1,968 Net pension liability 515,186 - 1,976,636 143,692 87,617 2,723,131 Total Noncurrent Liabilities 516,154 - 1,976,636 144,692 87,617 2,725,099 Total Liabilities 747,294 5,870,411 3,099,146 5,073,450 12,334,346 27,124,647 Deferred Inflows of Resources: Deferred inflows of resources - pension related items 534,975 - 2,052,559 149,211 90,982 2,827,727 Deferred inflows of resources - OPEB related items 51,346 - 152,233 9,683 3,907 217,169 Total Deferred Inflows of Resources 586,321 - 2,204,792 158,894 94,889 3,044,896 Net Position: Invested in capital assets 16,216,487 - 5,039,303 - - 21,255,790 Unrestricted 18,324,543 - 6,293,819 (422,352) 948,831 25,144,841 Total Net Position 34,541,030$ -$ 11,333,122$ (422,352)$ 948,831$ 46,400,631$ Governmental Activities - Internal Service Funds Fleet Management Self Insured Benefits Information Technology Risk Management Workers' Compensation 118April 4, 2023 Item #5 Page 151 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2022 Totals Operating Revenues: Other charges for services 6,627,195$ -$ 14,759,399$ 3,305,532$ 4,524,120$ 29,216,246$ Miscellaneous 67,848 - 49,700 49,453 849,077 1,016,078 Total Operating Revenues 6,695,043 - 14,809,099 3,354,985 5,373,197 30,232,324 Operating Expenses: Administration and general 1,697,001 - 11,511,484 425,605 85,763 13,719,853 Claims and premiums expense - - - 4,094,126 6,894,484 10,988,610 Depreciation expense 2,380,856 - 1,031,645 - - 3,412,501 Fuel and supplies 1,716,709 - - - - 1,716,709 Small equipment purchases 1,366 - 720,941 - - 722,307 Total Operating Expenses 5,795,932 - 13,264,070 4,519,731 6,980,247 30,559,980 Operating Income (Loss)899,111 - 1,545,029 (1,164,746) (1,607,050) (327,656) Nonoperating Revenues (Expenses): Intergovernmental - - 1,072 - - 1,072 Contributions 1,061,329 - (20,823) - - 1,040,506 Income (loss) from property and investments (815,785) - (355,274) (206,583) (567,116) (1,944,758) Gain (loss) on disposal of capital assets 307,868 - - - - 307,868 Total Nonoperating Revenues (Expenses)553,412 - (375,025) (206,583) (567,116) (595,312) Income (Loss) Before Transfers 1,452,523 - 1,170,004 (1,371,329) (2,174,166) (922,968) Transfers in - - - - - - Transfers out (100,800) - - - - (100,800) Changes in Net Position 1,351,723 - 1,170,004 (1,371,329) (2,174,166) (1,023,768) Net Position: Beginning of Year 33,189,307 - 10,163,118 948,977 3,122,997 47,424,399 End of Fiscal Year 34,541,030$ -$ 11,333,122$ (422,352)$ 948,831$ 46,400,631$ Governmental Activities - Internal Service Funds Fleet Management Self Insured Benefits Information Technology Risk Management Workers' Compensation 119April 4, 2023 Item #5 Page 152 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2022 Totals Cash Flows from Operating Activities: Cash received from/(paid to) interfund service provided 6,619,495$ -$ 14,759,399$ 3,305,532$ 4,524,120$ 29,208,546$ Cash paid to suppliers for goods and services (1,756,405) - (1,001,649) 120,469 (6,224) (2,643,809) Cash paid to employees for services (1,889,294) 254,596 (12,382,533) (478,342) (117,538) (14,613,111) Claims and premiums paid - - - (3,045,668) (5,179,148) (8,224,816) Cash received from (payments to) others 67,848 - 49,700 49,453 849,077 1,016,078 Net Cash Provided (Used) by Operating Activities 3,041,644 254,596 1,424,917 (48,556) 70,287 4,742,888 Cash Flows from Non-Capital Financing Activities: Cash transfers out (100,800) - - - - (100,800) Net Cash Provided (Used) by Non-Capital Financing Activities (100,800) - - - - (100,800) Cash Flows from Capital and Related Financing Activities: Contributions 1,061,329 - - - - 1,061,329 Acquisition and construction of capital assets (4,588,999) - (443,312) - - (5,032,311) Capital grants - - 1,072 - - 1,072 Proceeds from sales of capital assets 307,868 - - - - 307,868 Net Cash Provided (Used) by Capital and Related Financing Activities (3,219,802) - (442,240) - - (3,662,042) Cash Flows from Investing Activities: Interest received (815,785) - (380,836) (207,228) (570,428) (1,974,277) Net Cash Provided (Used) by Investing Activities (815,785) - (380,836) (207,228) (570,428) (1,974,277) Net Increase (Decrease) in Cash and Cash Equivalents (1,094,743) 254,596 601,841 (255,784) (500,141) (994,231) Cash and Cash Equivalents at Beginning of Year 20,105,624 5,615,815 7,436,689 4,967,238 13,780,368 51,905,734 Cash and Cash Equivalents at End of Year 19,010,881$ 5,870,411$ 8,038,530$ 4,711,454$ 13,280,227$ 50,911,503$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)899,111$ -$ 1,545,029$ (1,164,746)$ (1,607,050)$ (327,656)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 2,380,856 - 1,031,645 - - 3,412,501 (Increase) decrease in accounts receivable (7,700) - - - - (7,700) (Increase) decrease in inventories 74,810 - - - - 74,810 (Increase) decrease in prepaid expense 4,461 - (280,708) - - (276,247) Increase (decrease) in accrued liabilities (117,601) 254,596 (142,017) 120,469 (6,224) 109,223 Increase (decrease) in OPEB liability 112,745 242,397 17,789 10,488 383,419 Increase (decrease) in pension liability (305,038) (971,429) (70,526) (42,263) (1,389,256) Increase (decrease) in claims and judgments - - - 1,048,458 1,715,336 2,763,794 Total Adjustments 2,142,533 254,596 (120,112) 1,116,190 1,677,337 5,070,544 Net Cash Provided (Used) by Operating Activities 3,041,644$ 254,596$ 1,424,917$ (48,556)$ 70,287$ 4,742,888$ Governmental Activities - Internal Service Funds Fleet Management Self Insured Benefits Information Technology Risk Management Workers' Compensation 120April 4, 2023 Item #5 Page 153 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS JUNE 30, 2022 Totals Assets: Cash and investments 3,837,975$ 5,448,496$ 9,286,471$ Receivables: Assessments 20,428 7,378 27,806 Accrued interest 33,732 20,778 54,510 Restricted assets: Cash and investments 4,683,715 - 4,683,715 Total Assets 8,575,850 5,476,652 14,052,502 Liabilities: Accrued liabilities 26,746 5,242 31,988 Total Liabilities 26,746 5,242 31,988 Net Position: Restricted for: Individuals, organizations and other governments 8,549,104 5,471,410 14,020,514 Total Net Position 8,549,104$ 5,471,410$ 14,020,514 $ Assessment Districts Business Improvement Districts 121April 4, 2023 Item #5 Page 154 of 195 CITY OF CARLSBAD COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS YEAR ENDED JUNE 30, 2022 Additions: Taxes 1,373,266$ -$ 1,373,266$ Income (loss) from property and investments (122,452) (223,991) (346,443) Assessment district collections 3,511,314 6,862,991 10,374,305 Total Additions 4,762,128 6,639,000 11,401,128 Deductions: Distributions to beneficiaries - 3,151,352 3,151,352 Administrative expenses - 163,951 163,951 Bond interest expense and fees 1,662,438 - 1,662,438 Principal expense 3,610,000 - 3,610,000 Total Deductions 5,272,438 3,315,303 8,587,741 Changes in Net Position (510,310) 3,323,697 2,813,387 Net Position - Beginning of the Year 9,059,414 2,147,713 11,207,127 Net Position - End of the Year 8,549,104$ 5,471,410$ 14,020,514$ Business Improvement Districts Totals Assessment Districts 122April 4, 2023 Item #5 Page 155 of 195 123 Statistical Section This section of the City of Carlsbad’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city’s overall financial health. Table of Contents Page Financial Trends 124 These schedules contain trend information to help the reader understand how the city’s financial performance and well-being have changed over time. Revenue Capacity 134 These schedules contain information to help the reader assess the city’s water and wastewater revenue sources as well as the city’s most significant local revenue source, property taxes. Debt Capacity 143 These schedules present information to help the reader assess the affordability of the city’s current levels of outstanding debt, and the city’s ability to issue additional debt in the future. Demographic and Economic Information 152 These schedules offer demographic and economic indicators to help the reader understand the environment within which the city’s financial activities take place. Operating Information 156 These schedules contain service and infrastructure data to help the reader understand how the information in the city’s financial report relates to the services the city provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year. April 4, 2023 Item #5 Page 156 of 195 {city of Carlsbad Net Position by Component Last Ten Fiscal Years (dollars in thousands) 2012-13 2013-14 2014-15 2015-16 Governmental activities Net investment in capital assets 782,500$ 784,210$ 783,298$ 788,035$ Restricted for: Capital projects 182,685 175,468 178,228 176,279 Lighting and landscaping districts 2,958 4,703 5,263 5,921 Affordable housing 37,390 39,317 39,544 40,390 Habitat and agricultural mitigation management 2,665 1,713 1,708 1,758 Other purposes 3,685 3,774 3,059 2,948 Unrestricted 319,317 328,602 223,522 245,078 Total governmental activities net position 1,331,200$ 1,337,787$ 1,234,622$ 1 1,260,409$ Business-type activities Net investment in capital assets 307,000$ 305,681$ 307,122$ 317,927$ Restricted for: Capital projects 45,990 46,632 47,315 45,950 Unrestricted 55,758 66,083 69,922 73,285 Total business-type activities net position 408,748$ 418,396$ 424,359$ 1 437,162$ Total government Net investment in capital assets 1,089,500$ 1,089,891$ 1,090,420$ 1,105,962$ Restricted for: Capital projects 228,675 222,100 225,543 222,229 Lighting and landscaping districts 2,958 4,703 5,263 5,921 Affordable housing 37,390 39,317 39,544 40,390 Habitat and agricultural mitigation management 2,665 1,713 1,708 1,758 Other purposes 3,685 3,774 3,059 2,948 Unrestricted 375,075 394,685 293,444 318,363 Total net position 1,739,948$ 1,756,183$ 1,658,981$ 1,697,571$ Source: City of Carlsbad Annual Comprehensive Financial Reports 1 Net position for the prior year was restated in FY 2014-15, to reflect the application of GASB 68, Accounting & Financial Reporting for Pensions. 2 Habitat and agricultural mitigation management was combined with other purposes in FY 2019-20 due to immateriality. 3 In FY 2020-21 a transfer of $47 million was made from the General Fund to the Golf Course Fund. The recorded advance from the General Fund to the Golf Course Fund was removed as it was determined that repayment of the advance is not projected in the near or foreseeable future. 124April 4, 2023 Item #5 Page 157 of 195 {:city of Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 788,078$ 793,090$ 786,965$ 791,124$ 789,335$ 808,515$ 183,245 182,811 194,434 206,067 212,636 191,967 6,527 7,307 8,025 8,967 9,225 9,635 40,528 41,500 43,588 44,885 40,988 41,413 1,805 1,640 1,524 - 2 - - 2,818 2,800 4,329 5,444 6,251 6,254 249,816 262,023 289,000 286,386 249,699 3 263,633 1,272,817$ 1,291,171$ 1,327,865$ 1,342,873$ 1,308,134$ 1,321,417$ 344,836$ 349,548$ 346,628$ 351,153$ 361,477$ 355,487$ 40,098 39,522 38,540 41,244 41,462 38,949 85,153 88,576 97,509 94,140 149,954 3 151,766 470,087$ 477,646$ 482,677$ 486,537$ 552,893$ 546,202$ 1,132,914$ 1,142,638$ 1,133,593$ 1,142,277$ 1,150,812$ 1,164,002$ 223,343 222,333 232,974 247,311 254,098 230,916 6,527 7,307 8,025 8,967 9,225 9,635 40,528 41,500 43,588 44,885 40,988 41,413 1,805 1,640 1,524 - 2 - - 2,818 2,800 4,329 5,444 6,251 6,254 334,969 350,599 386,509 380,526 399,653 415,399 1,742,904$ 1,768,817$ 1,810,542$ 1,829,410$ 1,861,027$ 1,867,619$ 125April 4, 2023 Item #5 Page 158 of 195 Changes in Net Position Last Ten Fiscal Years (dollars in thousands) 2012-13 2013-14 2014-15 2015-16 Expenses Governmental activities General government 23,574$ 20,187$ 16,108$ 16,147$ Public safety 48,468 48,942 48,856 50,463 Community services 47,900 45,341 48,630 51,191 Public works 36,806 30,314 36,273 37,464 Interest and fiscal charges on long-term debt 4 1 - 1 Total governmental activities 156,752 144,785 149,867 155,266 Business-type activities Carlsbad Municipal Water District 41,626 43,547 40,897 39,458 Golf course 10,668 11,032 10,538 10,545 Wastewater 13,556 12,488 12,629 12,613 Solid waste 2,918 2,856 2,973 2,997 Total business-type activities 68,768 69,923 67,037 65,613 Total government 225,520$ 214,708$ 216,904$ 220,879$ Program Revenues Governmental activities Charges for services: General government 1,469$ 289$ 1,382$ 296$ Public safety 4,025 3,950 4,220 3,980 Community services 6,987 8,732 10,534 10,711 Public works 5,073 3,720 4,014 4,152 Operating grants and contributions 13,199 11,919 12,242 11,912 Capital grants and contributions 17,741 16,129 19,105 12,042 2 Total governmental activities 48,494 44,739 51,497 43,093 Business-type activities Charges for services: Carlsbad Municipal Water District 44,240 46,750 47,461 39,854 3 Golf course 6,278 6,635 6,709 6,988 Wastewater 12,402 12,896 12,875 12,963 Solid waste 3,060 3,320 3,245 3,206 Operating grants and contributions 38 90 59 5,646 Capital grants and contributions 2,855 3,198 5,879 2,011 Total business-type activities 68,873 72,889 76,228 70,668 Total government 117,367$ 117,628$ 127,725$ 113,761$ Net (Expense)/Revenue: Governmental activities (108,258)$ (100,046)$ (98,370)$ (112,173)$ Business-type activities 105 2,966 9,191 5,055 Total government net expense (108,153)$ (97,080)$ (89,179)$ (107,118)$ 126April 4, 2023 Item #5 Page 159 of 195 Ccityof Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 18,374$ 25,192$ 5 22,234$ 24,267$ 20,003$ 14,806$ 55,994 62,630 5 67,968 75,249 80,295 81,130 54,212 51,897 57,978 60,771 57,654 58,954 34,317 36,875 36,897 41,419 35,481 39,204 3 2 4 2 - 14 162,900 176,596 185,081 201,708 193,433 194,108 45,219 51,658 51,638 51,198 56,319 53,598 10,211 10,560 11,035 10,252 10,280 11,708 12,626 13,495 15,238 16,931 9,063 17,905 3,272 3,089 3,840 4,382 5,086 4,738 71,328 78,802 81,751 82,763 80,748 87,949 234,228$ 255,398$ 266,832$ 284,471$ 274,181$ 282,057$ 327$ 816$ 1,679$ 1,030$ 1,260$ 627$ 4,647 4,805 4,784 4,711 5,020 5,899 12,154 11,588 10,755 9,324 8,080 8,671 3,952 3,768 4,574 4,142 5,662 4,247 12,630 13,054 17,307 18,437 26,459 20,382 22,789 22,993 13,842 16,802 9,565 9,922 56,499 57,024 52,941 54,446 56,046 49,748 44,817 50,095 46,431 46,332 49,668 49,194 7,119 7,973 7,979 6,637 8,108 10,424 13,467 13,885 14,099 13,849 14,027 16,282 3,302 3,427 3,440 3,563 3,387 3,684 2,471 1,611 1,260 399 3,484 183 13,322 5,484 4,864 6,327 7,601 858 84,498 82,475 78,073 77,107 86,275 80,625 140,997$ 139,499$ 131,014$ 131,553$ 142,321$ 130,373$ (106,401)$ (119,572)$ (132,140)$ (147,262)$ (137,387)$ (144,360)$ 13,170 3,673 (3,678) (5,656) 5,527 (7,324) (93,231)$ (115,899)$ (135,818)$ (152,918)$ (131,860)$ (151,684)$ (continued) 127April 4, 2023 Item #5 Page 160 of 195 Changes in Net Position (continued) Last Ten Fiscal Years (dollars in thousands) 2012-13 2013-14 2014-15 2015-16 General Revenues and Other Changes in Net Position Governmental activities Taxes: Property taxes 52,861$ 52,608$ 55,992$ 58,945$ Sales and use taxes 28,403 30,520 32,146 34,843 Transient occupancy taxes 14,702 17,472 19,713 20,943 Franchise taxes 5,118 4,907 5,427 5,632 Business license taxes 3,834 4,177 4,548 4,895 Real property transfer taxes 1,058 1,080 1,406 1,546 Vehicle license fees 55 - - - Income from property and investments 1,792 6,917 4,564 11,910 4 Other general revenues 426 429 609 486 Extraordinary gain/(loss)- (10,289) 1 - - Special items-Golf Course debt - - - - Transfers (656) (1,188) (1,264) (1,240) Total governmental activities 107,593 106,633 123,141 137,960 Business type activities Property taxes 2,904 2,897 3,133 3,306 Income from property and investments 555 2,498 1,870 3,163 Other general revenues 85 99 623 39 Transfers 655 1,188 1,264 1,240 Special items-Golf Course debt - - - - Total business-type activities 4,199 6,682 6,890 7,748 Total government 111,792$ 113,315$ 130,031$ 145,708$ Change in Net Position Governmental activities (665)$ 6,587$ 24,771$ 25,787$ Business-type activities 4,304 9,648 16,081 12,803 Total government 3,639$ 16,235$ 40,852$ 38,590$ Source: City of Carlsbad Annual Comprehensive Financial Reports 1 2 3 The decrease in FY 2015-16 was a result of a decrease in water sales during the fiscal year from drought conservation measures. 4 5 6 7 8 Decrease in investment income for FY 2021-22 is due to the required fair value adjustment at fiscal year end (per GASB 31). Fund to the Golf Course Fund was removed as it was determined that repayment of the advance is not projected in the near or foreseeable future. The increase in FY 2015-16 is a result of higher cash balances that generate interest, an increase in investment earnings, and interest received The increase in FY 2017-18 is mainly due to changes in the city's pension discount rate. The decrease is FY 2020-21 in income from property and investments was caused by unrealized losses created by adjusting the city's In FY 2020-21 a transfer of $47 million was made from the General Fund to the Golf Course Fund. The recorded advance from the General Successor Housing Agency per California state mandate. Poinsettia Fire, as well as the receipt of retroactive mandated cost reimbursements. from the California Department of Finance earned on unpaid mandated costs. investments to fair market value at June 30, 2021 and a decrease in the average yield on the treasurer's portfolio for the year. The extraordinary loss in FY 2013-14 resulted from the restatement of accrued interest on prior year advances made by the city to the The decrease in FY 2015-16 was a result of one-time funds received from the federal government in the previous fiscal year for the 2014 128April 4, 2023 Item #5 Page 161 of 195 Ccityof Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 63,988$ 66,524$ 69,952$ 73,885$ 78,239$ 81,012$ 33,999 33,674 38,510 36,491 42,579 51,175 22,267 24,233 26,320 18,898 15,584 32,403 5,475 5,812 6,100 5,864 5,774 6,371 4,328 5,026 5,322 5,414 5,705 6,619 1,393 1,463 1,715 1,247 1,786 2,179 - - - - - - 1,975 2,551 20,695 20,239 5,036 6 (22,063) 8 451 519 439 559 516 1,262 - - - - - - - - - - (8,427) 12 - (15,067) (136) (219) (303) (47,273) 12 (1,316) 118,809 139,666 168,834 162,294 99,519 157,642 3,569 3,743 4,002 4,226 4,491 4,715 749 986 7,784 4,963 639 6 (7,656) 8 370 3 113 - - 2,258 15,067 136 219 303 47,273 7 1,316 - - - - 8,427 7 - 19,755 4,868 12,118 9,492 60,830 633 138,564$ 144,534$ 180,952$ 171,786$ 160,349$ 158,275$ 12,408$ 20,094$ 36,694$ 15,032$ (37,868)$ 13,282$ 32,925 8,541 8,440 3,836 66,357 (6,691) 45,333$ 28,635$ 45,134$ 18,868$ 28,489$ 6,591$ 129April 4, 2023 Item #5 Page 162 of 195 Fund Balances of Governmental Funds Last Ten Fiscal Years (dollars in thousands) 2012-13 2013-14 2014-15 2015-16 2016-17 General Fund Nonspendable 57,719$ 56,707$ 56,381$ 55,324$ 53,751$ Committed 1,000 1,000 1,000 1,000 1,000 Assigned 26,200 27,838 40,865 42,692 38,439 Unassigned 69,578 75,615 80,274 94,404 78,191 Total General Fund 154,497$ 161,160$ 178,520$ 193,420$ 171,381$ All Other Governmental Funds Nonspendable Special revenue funds 435$ 430$ 3$ 4$ 1$ Capital project funds - - - - - Restricted Special revenue funds 61,938 66,833 66,300 51,013 2 51,677 Capital project funds 167,009 1 157,712 1 161,499 176,280 2 183,245 Assigned Capital project funds 121,861 131,627 136,237 131,939 146,994 Unassigned Special revenue funds - - - - - Capital project funds - - - - - Total all other governmental funds 351,243$ 356,602$ 364,039$ 359,236$ 381,917$ Source: City of Carlsbad Annual Comprehensive Financial Reports 1 The large decreases in the restricted fund balance in the capital projects fund is a result of increased expenditures during FY 2012-13 and 2013-14 for the construction of Alga Norte Community Park. 2 Beginning in FY 2015-16, the Gas Tax fund balance was reclassified from a Special Revenue fund to a Capital Project fund. 3 In FY 2019-20, the General Fund advanced money to the Habitat Mitigation Fund, a Special Revenue fund, to be repaid to the General Fund once funds are available. 4 In FY 2020-21 a transfer of $47 million was made from the General Fund to the Golf Course Fund. The recorded advance from the General Fund to the Golf Course Fund was removed as it was determined that repayment of the advance is not projected in the near or foreseeable future. 130April 4, 2023 Item #5 Page 163 of 195 {city of Carlsbad 2017-18 2018-19 2019-20 2020-21 2021-22 51,628$ 49,608$ 49,008$ 3,446$ 4 2,211$ 1,000 1,000 1,000 1,000 1,000 43,855 33,367 30,733 56,115 48,982 82,570 101,701 110,122 99,260 109,946 179,053$ 185,676$ 190,863$ 159,821$ 162,139$ 1$ 1$ 1$ 1$ 3$ - - - 157 53,246 57,465 59,295 56,465 57,302 182,812 194,434 206,067 212,635 191,967 151,306 162,139 165,267 166,206 164,349 - - (234) 3 (228) (17) - - - - (885) 387,365$ 414,039$ 430,396$ 435,079$ 412,876$ 131April 4, 2023 Item #5 Page 164 of 195 Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (dollars in thousands) 2012-13 2013-14 2014-15 2015-16 Revenues: Taxes 109,447$ 114,996$ 123,411$ 2 129,617$ Intergovernmental 11,513 10,602 10,359 11,290 Licenses and permits 2,016 2,184 2,369 2,467 Charges for services 10,261 11,278 13,181 12,913 Fines and forfeitures 861 876 837 854 Income from property and investments 2,362 7,604 6,442 9,970 Contributions from property owners 12,029 9,042 10,688 8,009 Donations 411 210 440 417 Miscellaneous 1,969 1,219 2,550 1,503 Total revenues 150,869 158,011 170,277 177,040 Expenditures: Current: General government 23,072 21,471 17,903 17,221 Less: Interdepartmental charges (3,858) (3,566) (3,807) (3,471) Public safety 46,162 47,333 48,915 52,015 Community services 40,899 41,505 44,501 46,298 Public works 11,299 15,442 16,350 17,465 Capital outlay 28,602 18,702 20,050 34,669 Debt service: Principal retirement 316 159 - - Interest and fiscal charges 6 5 5 6 Total expenditures 146,498 141,051 143,917 164,203 Excess (deficiency) of revenues over (under) expenditures 4,371 16,960 26,360 12,837 Other financing sources (uses): Transfers in 8,087 11,477 14,857 9,970 Transfers out (14,792) (16,415) (16,420) (12,710) Proceeds from sale of capital asset - - - - Proceeds from leases - - - - Total other financing sources (uses)(6,705) (4,938) (1,563) (2,740) Net change in fund balances (2,334)$ 12,022$ 24,797$ 10,097$ Debt service as percentage of noncapital expenditures1 0.24%0.13%0.00%0.00% Source: City of Carlsbad Annual Comprehensive Financial Reports 1 Noncapital expenditures are total expenditures less capital outlay (to the extent capitalized for the Government-wide Statement 2 3 4 Increase in investment income for FY 2018-19 is due to an increase in the average yield on the investment portfolio for the year as well as an 5 Increase in public safety expenditures in FY 2018-19 is due to a voluntary $14.2 million additional payment to CalPERS to reduce the city's 6 Decrease in tax revenue for sales and transient occupancy taxes for FY 2020-21 is due to the effects of the COVID-19 pandemic and 7 Decrease in investment income for FY 2021-22 is due to the required fair value adjustment done on investments at fiscal year end (per GASB 31). unfunded pension liability in the safety plan. resulting stay at home orders on sales and transient occupancy taxes. of Net Position) and expenditures for capitalized assets included within the functional expenditure categories. Increase in taxes in FY 2014-15 due to growth in property and TOT taxes. during FY 2016-17. increase due to the required fair value adjustment done on investments at fiscal year end (per GASB 31). Includes a transfer out to the Golf Course Fund in the amount of $14.8 million for the defeasance of the golf course construction bonds 132April 4, 2023 Item #5 Page 165 of 195 {_city of Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 134,165$ 141,118$ 154,673$ 147,535$ 6 155,462$ 184,832$ 11,963 11,608 14,647 15,505 23,653 20,933 3,034 2,999 2,668 2,739 2,399 3,233 14,309 14,145 13,221 11,525 11,615 14,959 740 679 581 760 429 346 3,845 4,622 23,275 4 24,989 7,018 (20,118) 7 13,330 12,898 10,301 6,623 5,850 3,200 349 332 1,385 426 321 381 1,467 1,991 3,316 2,641 1,786 1,262 183,202 190,392 224,067 212,743 208,533 209,028 27,925 26,625 24,033 25,762 22,450 22,433 (3,345) (3,160) (4,581) (5,052) (5,146) (5,315) 57,329 58,568 77,550 5 70,997 78,731 82,225 48,930 49,039 52,951 56,931 53,267 59,491 17,349 17,220 18,380 19,995 19,991 22,056 17,603 26,885 20,703 22,171 21,390 47,015 - - 10 10 11 8 3 5 7 5 12 17 15 165,796 175,194 189,051 190,827 190,708 227,923 17,406 15,198 35,016 21,916 17,825 (18,895) 20,849 11,513 11,881 11,183 9,760 25,974 (37,613) 3 (13,590) (13,600) (11,486) (57,073) (27,189) - - - - - 200 - - - - - 25 (16,764) (2,077) (1,719) (303) (47,313) (990) 642$ 13,121$ 33,297$ 21,613$ (29,488)$ (19,885)$ 0.00%0.01%0.01%0.01%0.01%0.01% 133April 4, 2023 Item #5 Page 166 of 195 General Governmental Tax Revenues by Source Last Ten Fiscal Years (dollars in thousands) Fiscal Year Property Tax * Sales and Use Taxes Transient Occupancy Taxes Franchise Taxes Business License Taxes Real Property Transfer Taxes Gas Tax Total Tax Revenue 2012-13 52,888$ 29,301$ 14,702$ 5,118$ 3,834$ 1,058$ 2,546$ 109,447$ 2013-14 52,607 31,464 17,472 4,907 4,178 1,080 3,288 114,996 2014-15 55,992 1 33,202 19,713 2 5,427 4,548 1,406 3,123 123,411 2015-16 58,946 35,232 20,943 5,632 4,895 1,545 2,424 129,617 2016-17 63,988 1 34,543 22,267 3 5,475 4,328 1,393 2,171 134,165 2017-18 66,523 34,972 24,234 4 5,812 5,026 5 1,463 3,088 6 141,118 2018-19 69,952 40,795 7 26,320 6,100 5,322 1,715 4,469 154,673 2019-20 73,889 37,585 8 18,898 8 5,864 5,414 1,247 4,638 147,535 2020-21 78,247 43,726 15,584 8 5,774 5,705 1,786 4,640 155,462 2021-22 81,012 51,175 32,403 6,371 6,619 2,179 5,073 184,832 Percentage change from FY 2012-13 to FY 2021-22: 53%75% 120%24% 73% 106% 99%69% 1 Reflects improvement in the housing market and new construction. 2 The increase in TOT in FY 2014-15 is due to the openings of several new hotels and higher occupancy and room rates throughout the city. 3 The increase in TOT in FY 2016-17 is due to higher room rates throughout most of the city's hotels and an increase in available rooms. 4 The increase in TOT in FY 2017-18 is due to higher room rates throughout most of the city's hotels and an opening of a new hotel. 5 The increase in Business License Taxes in FY 2017-18 is due to a significant number of delinquent payments being collected. 6 The increase in Gas Taxes in FY 2017-18 is due to new ongoing allocations received from the state's Road Maintenance and Rehabilitation Account. 7 The increase in Sales and Use Taxes in FY 2018-19 is due to overall growth and the ending of the state's sales and use tax "triple flip" in FY 2017-18. 8 The decreases in tax revenue for sales tax for FY 2019-20 and transient occupancy taxes for FY 2019-20 and FY 2020-21 is due to the effects of the COVID-19 pandemic and resulting stay at home orders on sales and transient occupancy taxes. * Property Tax category also includes Vehicle License Fees (VLF) in lieu, property tax increment and CFD No. 1 special taxes. Source: City of Carlsbad Annual Comprehensive Financial Reports $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Total General Governmental Tax Revenues - Last Ten Fiscal Years (in thousands) Property Tax Sales and Use Taxes TOT Other 134April 4, 2023 Item #5 Page 167 of 195 {_city of Carlsbad ■ ■ ■ ■ Water and Wastewater Rates Last Ten Fiscal Years Wastewater Fiscal Year Monthly Delivery Charge Base Price Per Unit1 Monthly Base Rate 2012-13 $21.38 $3.20 $25.02 2013-14 20.07 3.19 25.52 2014-15 21.08 3.35 26.03 2015-16 22.19 3.53 27.81 2016-17 24.11 3.84 27.81 2017-18 24.72 3.94 27.81 2018-19 24.72 3.94 27.81 2019-20 25.02 4.04 28.66 2020-21 25.52 4.13 29.52 2021-22 27.81 3.84 35.93 Source: City of Carlsbad 1 Water Note: Rates shown are for a 5/8" meter, which is the standard household meter size. One unit of water equals 748 gallons. The base price shown is for tier 1, which applies to the first 12 units of usage per month at a single family residence. 135April 4, 2023 Item #5 Page 168 of 195 {city of Carlsbad T h i s p a g e is in te ntionally left blank. 136April 4, 2023 Item #5 Page 169 of 195 Assessed Value of Taxable Property Last Ten Fiscal Years (dollars in millions) Fiscal Year Residential Property Commercial Property Industrial Property Exemptions and Other Taxable Property1 Net Assessed Valuation Change From Prior Year Estimated Property Tax Revenue2 Total Direct Tax Rate3 2012-13 17,222$ 3,237$ 1,884$ 614$ 22,957$ -0.11% 44$ 0.1927% 2013-14 17,774 3,298 1,871 580 23,523 2.47 45 0.1927 2014-15 19,450 3,603 1,847 589 25,489 8.36 49 0.1927 2015-16 20,431 3,973 1,909 612 26,925 5.63 52 0.1927 2016-17 21,472 4,238 2,092 622 28,424 5.57 55 0.1927 2017-18 22,707 4,355 2,378 555 29,995 5.53 58 0.1927 2018-19 24,077 4,528 2,541 490 31,636 5.47 61 0.1927 2019-20 25,379 4,964 2,673 640 33,656 6.39 65 0.1927 2020-21 26,507 5,224 2,809 677 35,217 4.64 68 0.1927 2021-22 27,697 5,325 2,883 457 36,362 3.25 70 0.1927 1 Other property includes farm, rural, institutional, recreational, state secured property, unsecured property, personal property and fixtures. 2 Estimated property tax revenues do not include special assessments, redevelopment tax increment or community facilities district revenues. 3 The total direct tax rate is the city's proportionate share of Proposition 13 property taxes collected within the tax rate area. Source: County of San Diego, California Auditor and Controller's Office Notes: Information about estimated actual value of property is not available; the assessed value is based on the most recent sales value and includes secured property only. $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Taxable Assessed Property Value Last Ten Fiscal Years (in millions) Residential Property Commercial Property Industrial Property 137April 4, 2023 Item #5 Page 170 of 195 {city of Carlsbad ■ ■ ■ Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $100 of assessed value) Fiscal Year City of Carlsbad Total Direct Rate2 Carlsbad Unified School District San Diego County Educational Revenue Augmentation Fund Mira Costa Community College Tri City Hospital District All Other Rates Total Prop 13 Rate3 Voter Approved Debt4 Total Tax Rate5 2012-13 0.1927% 0.3412% 0.1576% 0.1497% 0.0937% 0.0198% 0.0453% 1.0000% 0.0768% 1.0768% 2013-14 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.0743 1.0743 2014-15 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.0710 1.0710 2015-16 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.0681 1.0681 2016-17 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.0563 1.0563 2017-18 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.0791 1.0791 2018-19 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.0758 1.0758 2019-20 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.1015 1.1015 2020-21 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.0999 1.0999 2021-22 0.1927 0.3412 0.1576 0.1497 0.0937 0.0198 0.0453 1.0000 0.0961 1.0961 1 Area 09000 was chosen as the most representative for the city. 2 The city has no general obligation bonds; therefore the Basic Tax Rate is the same as the Total Direct Tax Rate. 3 In 1978, California voters passed Proposition 13 which limited property taxes to a total maximum rate of 1.00% based on the assessed value of each property being taxed. This 1.00% is shared by all taxing agencies within a tax rate area. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the purchase price of the property becomes the new assessed value. 4 The majority of voter approved debt is related to various school district and hospital bonds. 5 The Total Tax Rate is the 1.00% Proposition 13 rate plus the Voter Approved Debt rate. Allocation of 1% Ad Valorem Property Taxes Overlapping Rates for Tax Rate Area 090001 Source: County of San Diego, California Auditor and Controller's Office The tax rate history above is for Tax Rate Area 09000, which has the highest total assessed value of the all the tax rate areas in the city. Tax Rate 138April 4, 2023 Item #5 Page 171 of 195 (city of Carlsbad Direct and Overlapping Property Tax Rates (continued) Last Ten Fiscal Years (rate per $100 of assessed value) Total Tax Rates1 County Tax Rate Areas2 Carlsbad Unified Schools Oceanside Unified Schools San Marcos Unified Schools Vista Unified Schools Encinitas Union Schools Mira Costa Comm. College Palomar Comm. College Palomar Health District MWD / SDCWA3 Total Voter Approved Rates4 1.0586% 1 0.0000% 0.0000% 0.0000% 0.0000% 0.0452% 0.0134% 0.0000% 0.0000% 0.0000%0.0586% 1.0621 35 - - - - 0.0452 0.0134 - - 0.0035 0.0621 1.0681 3 - - - - 0.0452 - 0.0194 - 0.0035 0.0681 1.0716 1 - - 0.0547 - - 0.0134 - - 0.0035 0.0716 1.0776 24 - - 0.0547 - - - 0.0194 - 0.0035 0.0776 1.0926 3 0.0792 - - - - 0.0134 - - - 0.0926 1.0961 54 0.0792 - - - - 0.0134 - - 0.0035 0.0961 1.0972 5 - - - 0.0743 - - 0.0194 - 0.0035 0.0972 1.1021 3 0.0792 - - - - - 0.0194 - 0.0035 0.1021 1.1096 1 - - 0.0547 - - 0.0134 - 0.0380 0.0035 0.1096 1.1156 11 - - 0.0547 - - - 0.0194 0.0380 0.0035 0.1156 1.1341 1 0.0792 - - - - 0.0134 - 0.0380 0.0035 0.1341 1.1372 1 - 0.1203 - - - 0.0134 - - 0.0035 0.1372 1 The Total Tax Rate is the 1.00% Proposition 13 rate plus the Voter Approved Debt rate. 2 Tax rate areas are determined by the County of San Diego. There are currently thirteen tax rates distributed among the 146 tax rate areas of the city. The table above shows the number of tax rate areas affected by each of the rates. 3 MWD is the Metropolitan Water District and SDCWA is the San Diego County Water Authority. 4 The majority of voter approved debt is related to various school district and hospital bonds. Fiscal Year 2021-22 Voter Approved Debt Tax Rates for all Rate Areas Source: County of San Diego, California Auditor and Controller's Office 139April 4, 2023 Item #5 Page 172 of 195 {city of Carlsbad Principal Property Taxpayers Current Year and Nine Years Ago Taxpayer Taxable Assessed Value Rank Percentage of Total City Net Assessed Value Taxable Assessed Value Rank Percentage of Total City Net Assessed Value Poseidon Water Desalination Plant 416,869,887$ 1 1.15% -$ 0.00% La Costa Glen Retirement Community 281,090,008 2 0.77 234,163,899 1 1.02 Legoland California, LLC 256,511,543 3 0.71 125,802,730 5 0.55 La Costa Resort & Spa 251,767,575 4 0.69 154,321,673 3 0.67 The Forum Shopping Center 208,723,461 5 0.57 179,700,000 2 0.78 Levine Investments Limited Partnership 184,578,441 6 0.51 The Shoppes at Carlsbad 180,395,889 7 0.50 104,159,802 8 0.45 La Costa Town Center, LLC 164,340,698 8 0.45 Grand Pacific Carlsbad LP 140,267,931 9 0.39 Carlsbad Premium Outlets 133,481,605 10 0.37 116,909,403 7 0.51 Park Hyatt Aviara Resort 150,408,827 4 0.66 Pacific View Apartments 121,088,079 6 0.53 HG Fenton Company 80,699,051 9 0.35 Waterstone Apartment Homes 79,560,000 10 0.35 Total 2,218,027,038$ 6.10% 1,346,813,464$ 5.87% Net assessed valuation 36,362,069,240$ 22,956,650,306$ Source: County of San Diego, California Assessor's Office 2022 2013 140April 4, 2023 Item #5 Page 173 of 195 {city of Carlsbad Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Total Tax Levy for Fiscal Year1 Amount2 Percentage of Levy Collections in Subsequent Years Amount Percentage of Levy 2012-13 $54,469,819 $53,677,921 98.55%$575,391 $54,253,312 99.60% 2013-14 55,883,499 55,042,944 98.50 527,304 55,570,248 99.44 2014-15 60,266,230 59,509,285 98.74 551,957 60,061,242 99.66 2015-16 63,363,527 62,595,504 98.79 496,883 63,092,387 99.57 2016-17 67,116,590 66,233,111 98.68 575,028 66,808,139 99.54 2017-18 70,221,876 69,383,391 98.81 556,947 69,940,338 99.60 2018-19 74,560,530 73,518,065 98.60 596,675 74,114,740 99.40 2019-20 78,446,259 77,076,471 98.25 915,465 77,991,936 99.42 2020-21 82,787,902 81,504,185 98.45 638,410 82,142,595 99.22 2021-22 86,318,392 84,678,789 98.10 N/A 84,678,789 98.10 1 Includes real property transfer taxes, homeowner exemptions and Proposition 172 public safety sales taxes. 2 Total collections include secured, unsecured, homeowners' exception and supplementary amounts distributed by the county. Collections within the Fiscal Year of the Levy Total Collections to Date Source: County of San Diego, California Auditor and Controller's Office $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Property Tax Levies & Collections Last Ten Fiscal Years (in millions) Total Tax Levy for Fiscal Year1 Total Collections to Date 141April 4, 2023 Item #5 Page 174 of 195 {city of Carlsbad ■ ■ T h i s p a g e is in te ntionally left blank. 142April 4, 2023 Item #5 Page 175 of 195 Ratios of Outstanding Debt by Type Last Ten Fiscal Years (dollars in thousands except per capita) Fiscal Year Leases Loans Payable Bonds/ Special Debt1 Installment Purchase Agreements Loan Payable2 Capital Leases Total Percentage of Personal Income Per Capita 2012-13 -$ 159$ 17,237$ 1,697$ 21,335$ -$ 40,428$ 0.92% 373.48$ 2013-14 - - 16,645 905 19,837 - 37,387 0.77 339.36 2014-15 - - 16,260 - 18,429 - 34,689 0.71 313.49 2015-16 970 - 16,058 - 17,670 - 34,698 0.60 307.25 2016-17 784 - - 4 - 15,901 - 16,685 0.28 146.71 2017-18 588 - - - 14,944 - 15,532 0.24 135.51 2018-19 378 - - - 16,827 - 17,205 0.25 149.30 2019-20 156 - - - 15,327 - 15,483 0.25 135.27 2020-21 - - - - 13,750 - 13,750 0.18 119.05 2021-22 22 - - - 12,444 - 12,466 0.14 107.85 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Sources: MuniServices, LLC, California Department of Finance and US Census Data Governmental Activities Business-Type Activities 1 Bond/Special Debt is net of amortized premiums. 2 The State Water Resources Control Board issued low interest loans for the Carlsbad Water Recycling Facility in 2005, 2006 and 2014. Varying amounts of principal and interest are due annually. Payments are funded from recycled water user fees. 3 During FY 2006-07, Carlsbad Municipal Golf Course Revenue Bonds were issued for $18.5 million. 4 The Carlsbad Municipal Golf Course Revenue Bonds were defeased during FY 2016-17. $373 $339 $313 $307 $147 $136 $149 $135 $119 $108 $0 $200 $400 $600 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Outstanding Debt per Capita Last Ten Fiscal Years (in dollars) 143April 4, 2023 Item #5 Page 176 of 195 {city of Carlsbad Schedule of Direct and Overlapping Bonded Debt Current Fiscal Year Fiscal Year 2021-22 Assessed Valuation:$37,971,003,039 Redevelopment Incremental Valuation:1,608,993,799 Adjusted Assessed Valuation:$36,362,009,240 Total Debt City’s Share of Overlapping Tax and Assessment Debt:06/30/22 Debt 6/30/22 Metropolitan Water District 20,175,000$ 1.12% 226,767$ Mira Costa Community College District 291,380,000 27.59 80,377,173 Palomar Community College District 655,840,155 2.69 17,642,100 Carlsbad Unified School District 293,223,501 98.17 287,857,511 Carlsbad Unified School District Community Facilities District No 1 1,100,000 100.00 1,100,000 Oceanside Unified School District 286,410,665 0.00 11,456 Vista Unified School District 247,299,882 0.76 1,886,898 Encinitas Union School District 44,196,583 29.97 13,246,158 San Marcos Unified School District 273,680,421 17.84 48,819,113 San Marcos Unified School District CFD No. 4 13,420,000 32.76 4,395,721 San Marcos Unified School District CFD No. 5 11,720,000 100.00 11,720,000 San Dieguito Union High School District 434,285,000 8.83 37,451,637 San Dieguito Union HS District CFD No. 94-2 23,320,000 98.34 22,933,588 San Dieguito Union HS District CFD No. 95-2 5,600,000 8.81 493,528 Palomar Health District 408,228,082 1.66 6,788,833 Olivenhain Municipal Water District, Assess. Dist. No. 96-1 5,470,000 23.50 1,285,341 City of Carlsbad CFD No. 3, I.A. No. 1 & No. 2 17,190,000 100.00 17,190,000 City of Carlsbad 1915 Act Bonds 24,935,000 100.00 24,935,000 Total Overlapping Tax and Assessment Debt 3,057,474,289$ 578,360,824$ Source: MuniServices, LLC and County of San Diego, California Auditor and Controller's Office 1 Percentage of overlapping agency's assessed valuation located within boundaries of the city. Percent Applicable1 144April 4, 2023 Item #5 Page 177 of 195 (_ City of Carlsbad Schedule of Direct and Overlapping Bonded Debt (continued) Current Fiscal Year Total Debt City’s Share of Overlapping General Fund Obligation Debt:06/30/22 Debt 6/30/22 San Diego County General Fund Obligations 245,340,000$ 6.29% 15,434,339$ San Diego County Pension Obligation Bonds 340,825,000 6.29 21,441,301 San Diego County Superintendent of Schools General Fund Obligations 7,780,000 6.29 489,440 Palomar Community College District General Fund Obligations 1,440,000 2.69 38,736 Carlsbad Unified School District General Fund Obligations 61,600,000 98.17 60,472,720 San Marcos Unified School District General Fund Obligations 70,463,687 17.84 12,569,312 Vista Unified School District Certificates of Participation 39,095,000 0.76 298,295 San Dieguito Union High School District General Fund Obligations 12,730,000 8.83 1,123,677 Total Overlapping General Fund Obligation Debt 779,273,687$ 111,867,820$ Overlapping Tax Increment Debt (Successor Agency):1,950,000 100.00 1,950,000 2 Total Overlapping Debt:3,838,697,976$ 692,178,644$ City of Carlsbad Direct Debt: City of Carlsbad Governmental Activities Obligations 22,377$ 100.00 22,377$ Total City of Carlsbad Direct Debt 22,377$ 22,377$ Combined Total Debt 3,838,720,353$ 692,201,021$ 3 Source: MuniServices, LLC and County of San Diego, California Auditor and Controller's Office 1 Percentage of overlapping agency's assessed valuation located within boundaries of the city. 2 Created by the dissolution of the Redevelopment Agency in FY 2011-12. 3 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds. Ratios to FY 2021-22 Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.59% Ratios to FY 2021-22 Adjusted Assessed Valuation: Governmental Activities Direct Debt 0.0001% Combined Total Debt 1.90% Percent Applicable1 Shdl f i d 145April 4, 2023 Item #5 Page 178 of 195 (city of Carlsbad Direct and Overlapping Debt Last Ten Fiscal Years (rate per $1,000 of assessed value) 2012-13 2013-14 2014-15 Overlapping Tax and Assessment Debt: Metropolitan Water District 0.080$ 0.062$ 0.049$ Mira Costa Community College District - - - Palomar Community College District 0.375 0.361 0.562 Carlsbad Unified School District 8.312 7.921 7.073 Carlsbad Unified School District CFD No. 1 0.103 0.052 - Oceanside Unified School District 0.001 - - Vista Unified School District 0.031 0.028 0.025 Encinitas Union School District 0.454 0.426 0.385 San Marcos Unified School District 1.711 2.248 2.087 San Marcos Unified School District Facility Improvement District 0.076 0.057 0.035 San Marcos Unified School District CFD No. 4 0.230 0.292 0.254 San Marcos Unified School District CFD No. 5 0.918 0.864 0.690 San Dieguito Union High School District 0.621 0.607 0.967 San Dieguito Union HS District CFD No. 94-1 0.004 0.004 0.003 San Dieguito Union HS District CFD No. 94-2 1.082 1.032 0.928 San Dieguito Union HS District CFD No. 95-2 0.022 0.023 0.021 San Dieguito Union HS District combined CFD - - - Palomar Health District 0.353 0.336 0.308 Olivenhain Municipal Water District, Assess. Dist. No. 96-1 0.138 0.139 0.031 City of Carlsbad CFD No. 3, I.A. No. 1 & No. 2 1.045 1.000 0.903 City of Carlsbad 1915 Act Bonds 2.107 2.018 1.727 Total Overlapping Tax and Assessment Debt 17.663$ 17.470$ 16.048$ Overlapping General Fund Obligation Debt: San Diego County General Fund Obligations 1.070$ 0.983$ 0.857$ San Diego County Pension Obligation Bonds 2.017 1.865 1.664 San Diego City Superintendent of Schools General Fund Obligations 0.047 0.042 0.036 Mira Costa Community College District Certificates of Participation 0.028 0.023 0.018 Palomar Community College District General Fund Obligations 0.006 0.006 0.005 Carlsbad Unified School District General Fund Obligations 1.967 2.086 1.846 San Marcos Unified School District General Fund Obligations 0.458 0.441 0.407 Vista Unified School District Certificates of Participation 0.001 0.001 0.001 San Dieguito Union High School District General Fund Obligations 0.051 0.049 0.047 Other Unified School District Certificates of Participation - - - Total Overlapping General Fund Obligation Debt 5.645$ 5.496$ 4.881$ Overlapping Tax Increment Debt (Successor Agency):0.376$ 0.341$ 0.290$ Total Overlapping Debt:23.684 23.307 21.219 City of Carlsbad Direct Debt: City of Carlsbad Governmental Activities Obligations 0.007 - - Total City of Carlsbad Direct Debt 0.007$ -$ -$ Combined Total Debt 23.691$ 23.307$ 21.219$ Source: MuniServices, LLC and County of San Diego, California Auditor and Controller's Office 146April 4, 2023 Item #5 Page 179 of 195 C Cityof Carlsbad 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 0.039$ 0.030$ 0.023$ 0.017$ 0.013$ 0.009$ 0.006$ - - 0.918 0.750 0.590 2.414 2.210 0.520 0.619 0.571 0.530 0.493 0.498 0.485 6.370 5.816 5.298 7.474 6.944 8.861 7.916 - - 0.051 0.045 0.039 0.035 0.030 - - - - - - - 0.022 0.024 0.018 0.028 0.027 0.027 0.052 0.515 0.551 0.506 0.461 0.421 0.389 0.364 1.922 1.797 1.706 1.571 1.521 1.414 1.343 0.027 0.020 0.014 0.009 0.004 - - 0.232 0.199 0.146 0.164 0.146 0.132 0.121 0.626 0.566 0.404 0.456 0.404 0.360 0.322 0.906 1.031 0.925 0.956 0.925 1.087 1.030 0.003 0.003 - - - - - 0.855 0.983 0.736 0.800 0.736 0.678 0.631 0.019 0.017 0.017 0.018 0.017 0.015 0.014 - - - - - - - 0.285 0.258 0.212 0.228 0.212 0.196 0.187 0.102 0.091 0.079 0.069 0.058 0.040 0.035 0.836 0.750 0.684 0.623 0.561 0.513 0.473 1.564 1.379 1.240 1.024 0.892 0.786 0.686 14.843$ 14.134$ 13.548$ 15.223$ 14.003$ 17.454$ 15.905$ 0.709$ 0.648$ 0.572$ 0.510$ 0.436$ 0.379$ 0.424$ 1.497 1.347 1.168 1.016 0.860 0.716 0.590 0.031 0.025 0.023 0.020 0.018 0.015 0.013 0.014 0.119 0.005 0.001 - - - 0.004 0.003 0.002 0.002 0.001 0.001 0.001 1.692 1.598 1.447 1.313 1.176 1.065 1.663 0.376 0.378 0.459 0.421 0.401 0.368 0.346 0.001 0.001 - - - - 0.008 0.044 0.041 0.039 0.036 0.034 0.032 0.031 - - - - - - - 4.368$ 4.160$ 3.715$ 3.319$ 2.926$ 2.576$ 3.076$ 0.250$ 0.212$ 0.177$ 0.143$ 0.110$ 0.090$ 0.058$ 19.461 18.506 17.440 18.685 17.039 20.120 19.039 0.036 0.028 0.020 0.012 0.005 - 0.001 0.036$ 0.028$ 0.020$ 0.012$ 0.005$ -$ 0.001$ 19.497$ 18.534$ 17.460$ 18.697$ 17.044$ 20.120$ 19.040$ 147April 4, 2023 Item #5 Page 180 of 195 Legal Debt Margin Information Last Ten Fiscal Years (dollars in thousands) 2012-13 2013-14 2014-15 2015-16 Net assessed valuation 22,956,650$ 23,522,746$ 25,489,468$ 26,924,891$ Debt limit (25% x 15%)860,874 882,103 955,855 1,009,683 Less amount of debt applicable to limit: Bonded debt 17,005 16,645 16,260 15,855 Loan payable 159 - - - Lease obligations - - - 970 Total net debt applicable to limit 17,164 16,645 16,260 16,825 Legal debt margin 843,710$ 865,458$ 939,595$ 992,858$ Total net debt applicable to the limit as a percentage of debt limit 1.99%1.89%1.70%1.67% Source: City of Carlsbad Annual Comprehensive Financial Reports 1 The golf course bonds were defeased during FY 2016-17. Note: Under state finance law, the city's outstanding general obligation debt should not exceed 15% (as adjusted by 25% per the law) of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. 1.99%1.89% 1.70%1.67% 0.07%0.05%0.03%0.01%0.00% 0.00% 0.00% 1.00% 2.00% 3.00% 4.00% 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Percent of Debt Applicable to the Legal Debt Limit Last Ten Fiscal Years 148April 4, 2023 Item #5 Page 181 of 195 {city of Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 28,423,782$ 29,994,964$ 31,635,528$ 33,655,907$ 35,217,379$ 36,362,069,240$ 1,065,892 1,124,811 1,186,332 1,262,097 1,320,652 1,363,577,597 - 1 - - - - - - - - - - - 785 588 378 156 - 22 785 588 378 156 - 22 1,065,107$ 1,124,223$ 1,185,954$ 1,261,941$ 1,320,652$ 1,363,577,575$ 0.07% 0.05% 0.03% 0.01% 0.00% 0.00% 149April 4, 2023 Item #5 Page 182 of 195 Pledged-Revenue Coverage Last Ten Fiscal Years 2012-13 2013-14 2014-15 2015-16 Wastewater Revenue Bonds Gross revenues 1, 5 12,599,601$ 13,699,286$ 13,723,835$ 13,723,835$ Less expenses 2, 5 7,094,310 6,989,194 7,249,798 7,249,798 Net available revenue 5,505,291$ 6,710,092$ 6,474,037$ 6,474,037$ Debt service Principal 5 820,000$ 860,000$ 905,000$ 905,000$ Interest 5 111,469 68,419 23,191 - Total debt service 931,469$ 928,419$ 928,191$ 905,000$ Coverage 5.91 7.23 6.97 7.15 Recycled Water Loans Gross revenues 3 8,160,109$ 9,392,061$ 9,210,258$ 8,216,362$ Less expenses 4 4,019,176 3,640,786 3,826,699 4,679,706 Net available revenue 4,140,933$ 5,751,275$ 5,383,559$ 3,536,656$ Debt service Principal 1,343,498$ 1,375,337$ 1,407,932$ 1,441,301$ Interest 532,983 501,144 468,550 435,182 Total debt service 1,876,481$ 1,876,481$ 1,876,482$ 1,876,483$ Coverage 2.21 3.06 2.87 1.88 Golf Course Revenue Bonds Gross revenues 1, 6 6,777,292$ 7,747,116$ 8,428,375$ 8,196,853$ Less expenses 2, 6 5,954,896 6,125,159 6,302,019 6,273,320 Net available revenue 822,396$ 1,621,957$ 2,126,356$ 1,923,533$ Debt service Principal 6 340,000$ 360,000$ 385,000$ 405,000$ Interest 6 771,600 755,850 739,088 721,313 Total debt service 1,111,600$ 1,115,850$ 1,124,088$ 1,126,313$ Coverage 0.74 1.45 1.89 1.71 Source: City of Carlsbad Annual Comprehensive Financial Reports 1 Includes operating and non-operating revenues and transfers in from the General Fund. 2 Includes operating and non-operating expenses, excluding interest expense and depreciation. 5 Debt service on the wastewater revenue bonds was completed during FY 2015-16. 6 The golf course bonds were defeased during FY 2016-17. 3 Includes water (potable and recycled) operating and non-operating revenues and fees. In FY 2020-21 the State Water Resources Board confirmed the pledged revenue includes potable, which was excluded in prior years. 4 Includes water (potable and recycled) operating and non-operating expenses, excluding interest expense and depreciation. In FY 2020-21 the State Water Resources Board confirmed the pledged revenue includes potable, which was excluded in prior years. 150April 4, 2023 Item #5 Page 183 of 195 (City of Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 -$ -$ -$ -$ -$ -$ - - - - - - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - -$ -$ -$ -$ -$ -$ n/a n/a n/a n/a n/a n/a 8,371,467$ 9,869,958$ 8,198,882$ 7,557,893$ 56,446,838$ 3,4 56,363,973$ 4,863,054 5,559,509 6,472,817 5,926,215 50,079,801 3,4 53,308,298 3,508,413$ 4,310,449$ 1,726,065$ 1,631,678$ 6,367,037$ 3,055,675$ 1,475,461$ 1,510,433$ 1,546,234$ 1,582,886$ 1,620,408$ 1,658,821$ 401,021 366,049 330,248 293,596 256,074 217,661 1,876,482$ 1,876,482$ 1,876,482$ 1,876,482$ 1,876,482$ 1,876,482$ 1.87 2.30 0.92 0.87 3.39 1.63 -$ -$ -$ -$ -$ -$ - - - - - - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - -$ -$ -$ -$ -$ -$ n/a n/a n/a n/a n/a n/a 151April 4, 2023 Item #5 Page 184 of 195 Demographic and Economic Statistics Last Ten Fiscal Years Year Total Population % of S.D. County Population % Change from Previous Year % High School Graduate % Bachelor's Degree or Higher Median Age 2012-13 108,246 3.44%0.53%88.5%35.4%39.3 2013-14 110,169 3.45 1.78 95.6 51.3 40.3 2014-15 110,653 3.43 0.44 96.0 51.9 41.1 2015-16 112,930 3.43 2.06 95.6 54.8 42.1 2016-17 113,725 3.43 0.70 95.8 54.2 41.9 2017-18 114,622 3.43 0.79 95.7 55.0 42.3 2018-19 115,241 3.44 0.54 95.7 58.1 42.6 2019-20 114,463 3.42 -0.68 95.0 59.5 44.4 2020-21 115,501 3.48 0.91 95.2 59.5 42.9 2021-22 115,585 3.52 0.07 97.1 60.4 41.8 Sources: MuniServices, LLC Population projections are from the California Department of Finance 2 Unemployment increase in FY 2019-20 is due to the COVID-19 pandemic. Educational Attainment 1 Personal income is the estimated total aggregate income for the total population. Unemployment rate estimates are from the California Employment Development Department, Bureau of Labor Statistics. Household and demographic characteristics estimates are from the United States Census Data Sets Tables. 152April 4, 2023 Item #5 Page 185 of 195 {city of Carlsbad Average Household Size Personal Income (millions) 1 Per Capita Personal Income City Unemployment Rate 2.63 4,403$ 40,672$ 5.9% 2.53 4,862 44,134 6.30 2.30 4,907 44,345 4.30 2.68 5,741 50,838 5.20 2.58 6,060 53,285 4.20 2.60 6,496 56,675 3.00 2.60 6,889 59,780 2.60 2.60 6,101 53,300 13.50 2 2.38 7,751 67,111 8.11 2.39 8,910 77,085 2.40 153April 4, 2023 Item #5 Page 186 of 195 T h i s p a g e is in te ntionally left blank. 154April 4, 2023 Item #5 Page 187 of 195 Principal Employers Current Fiscal Year and Nine Years Ago Employer Industry Employees Rank % of Total City Employment Employees Rank % of Total City Employment ViaSat, Inc.Information Technology 4,213 1 5.40%1,510 2 2.44% Legoland California Hospitality/Tourism 2,300 2 2.95%1,422 4 2.29% Thermo Fisher Scientific Life Sciences 2,332 3 2.99% Carlsbad Unified School District Education 1,094 4 1.40%903 7 1.46% Omni La Costa Resort & Spa Hospitality/Tourism 900 5 1.15%932 6 1.50% City of Carlsbad Government 783 6 1.00%675 9 1.09% Gemological Institute of America Research/Education 771 7 0.99%794 8 1.28% Ionis Parmaceuticals Life Sciences 671 8 0.86% Park Hyatt Aviara Hospitality/Tourism 648 9 0.83% TaylorMade Golf Company Action Sports 514 10 0.66%954 5 1.54% Callaway Golf Company Action Sports 1,637 1 2.64% Life Technologies Life Sciences 1,454 3 2.35% Zimmer Dental, Inc Manufacturing 673 10 1.09% Subtotal Employees 14,226 18.24%10,954 17.67% Total Employees Citywide (estimate)78,000 62,000 Source: City of Carlsbad Business License Data Fiscal Year 2021-22 Fiscal Year 2012-13 155April 4, 2023 Item #5 Page 188 of 195 (city of Carlsbad Authorized Full-Time and 3/4-Time City Government Employees by Program Area Last Ten Fiscal Years Program Area 2012-13 2013-14 2014-15 2015-16 Policy and Leadership Group City Attorney 7.00 7.00 7.00 7.00 City Clerk Services 6.00 5.00 5.00 5.00 City Council 1.00 1.00 1.00 1.00 City Manager 7.00 7.00 7.00 7.00 City Treasurer 0.75 0.75 0.75 0.75 Communications & Engagement 2.75 2.75 4.75 1 5.00 Administrative Services Administration - - - - Finance 30.50 31.50 31.50 32.50 Human Resources 9.00 9.00 11.00 11.00 Information Technology 22.50 22.50 22.50 19.50 Innovation & Economic Development - - - - Public Safety Police 161.00 161.00 162.00 168.00 Fire 87.75 88.00 89.00 89.00 Community Services Community Services Administration - - - - Community Development 47.00 44.00 44.00 44.00 Housing & Homeless Services 10.00 10.00 12.00 13.00 Library & Cultural Arts 51.25 51.25 50.25 1 50.50 Parks & Recreation 68.40 67.60 61.60 1 58.15 Public Works Construction Management & Inspection - - - - Environmental Management - - - 8.50 2 Fleet & Facilities - - - - General Services 39.55 40.60 39.90 28.10 2 Public Works Administration - - - 8.05 2 Transportation 54.40 53.40 55.90 57.35 2 Utilities 67.65 65.40 64.60 60.85 2 Limited Term Personnel (Full-Time)1.00 2.00 - 3.75 Total Full Time Authorized Employees 674.50 669.75 669.75 678.00 Net Increase/(decrease) over prior year (9.75) (4.75) - 8.25 Source: City of Carlsbad Operating Budget Notes: Table Includes both full-time and 3/4 time employees A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick-leave). A 3/4 time employee is scheduled to work 1,560 hours per year (including vacation and sick-leave). 1 During FY 2014-15, the Policy and Leadership and Community Services divisions were reorganized. 2 During FY 2015-16, FY 2016-17, FY 2019-20 and FY 2020-21, the Public Works division restructured divisions. 3 During FY 2018-19, Police IT was consolidated with city IT, resulting in the transfer of 5.0 FTEs. 4 During FY 2018-19, Housing & Neighborhood Services was combined with Community Development. 5 During FY 2020-21, employees were moved from City Manager and Community Development to create a new office of Innovation & Economic Development and Community Services Administration. 6 During FY 2021-22, Housing & Homeless Services was established. 156April 4, 2023 Item #5 Page 189 of 195 {city of Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 6.00 7.00 7.00 8.00 8.00 8.00 5.00 6.00 6.00 7.00 7.00 7.00 1.00 1.00 1.00 2.00 2.00 2.00 8.00 8.00 9.00 12.00 7.00 5 7.00 0.75 0.75 0.75 1.00 1.00 1.00 5.00 5.00 5.00 7.00 7.00 9.00 - - - - - 3.00 33.00 32.00 32.00 31.00 31.00 28.00 11.00 11.00 11.00 17.00 17.00 17.00 20.00 27.00 32.00 3 35.00 37.00 37.00 - - - 2.00 4.00 5 4.00 168.00 168.00 169.00 3 184.00 184.00 186.00 90.00 90.00 90.00 97.75 97.75 112.00 - - - - 3.00 5 3.00 44.00 44.00 58.00 4 63.00 61.75 5 53.00 6 13.00 13.00 - 4 - - 14.00 6 50.50 50.50 50.50 52.50 52.50 53.00 57.15 57.00 55.00 55.00 55.00 55.00 - - - - 15.20 2 15.20 9.50 2 9.70 9.60 11.05 11.95 17.95 - - - - 34.05 2 37.05 51.30 2 52.00 53.00 47.85 2 - - 9.85 2 12.30 7.65 7.60 7.85 7.85 33.00 2 32.00 35.00 44.15 2 41.75 41.75 60.20 2 59.00 61.75 62.10 61.95 63.95 6.75 7.75 4.75 0.75 - - 683.00 693.00 698.00 747.75 747.75 782.75 5.00 10.00 5.00 49.75 - 35.00 157April 4, 2023 Item #5 Page 190 of 195 Operating Indicators by Function/Program Last Ten Fiscal Years 2012-13 2013-14 2014-15 2015-16 General Government Number of applications processed (full and part-time)10,904 9,527 8,551 8,037 Number of external new hires (full and part-time)151 284 299 260 Number of internal promotions / transfers (full-time only)6 47 41 31 Business licenses processed 9,422 10,327 10,735 11,449 Number of outgoing payments processed 38,441 39,310 40,663 41,398 Public Safety Police Calls for service 90,122 87,976 91,314 92,061 Average priority one response (minutes)5.8 5.8 6.5 6.1 Cases 8,314 8,296 8,349 9,253 Fire Emergency responses 10,755 9,925 9,830 11,455 Response time: arrivals on scene within goal standard 71%63%63%64% Community Development Affordable housing units completed 59 - - - Financial assistance to affordable housing projects 7,408,000$ -$ 2,646,000$ -$ Building permits issued 1,500 1,400 1,600 3,000 Building inspections conducted 24,000 19,000 21,000 23,000 Final inspections (residential dwelling units)440 190 200 200 Final inspections (commercial square feet)n/a 45,000 60,000 60,000 Code Enforcement Actions (activities)4,943 4,794 5,389 10,994 Community Services Library - total material circulation 1,348,333 1,369,369 1,293,282 1,103,090 Library - patron visits 821,045 791,533 804,003 609,679 3 Cultural Arts - number of events 50 62 80 88 Arts - attendance of events 80,000 75,000 87,000 85,000 Recreation - youth sports participants 1,200 2,292 1 1,000 1,000 Recreation - adult sports participants 5,200 5,600 6,150 5,600 Recreation - enrichment class enrollees 12,200 10,350 19,030 2 19,632 Recreation - special events participants 13,000 13,600 17,841 2 19,474 Recreation - aquatics classes conducted 575 1,018 1 1,224 684 Trees trimmed 1,936 1,920 2,018 1,965 Public Works Streets Centerline road miles resurfaced with overlay or slurry seal 24.3 14.8 18.1 20.0 Carlsbad Municipal Water District Average consumption (millions of gallons per day)15.4 15.9 14.6 12.1 Annual water deliveries (acre feet)17,248 17,801 16,368 13,578 Water connections 28,947 29,045 29,190 29,190 Wastewater Sewage pumped (millions of gallons per day) 6.65 6.53 5.90 6.17 Annual flow (millions of gallons) 2,426 2,384 2,152 2,252 Wastewater connections 22,955 23,282 23,431 23,431 Source: City of Carlsbad 1 Increases in the number of participants is the result of the opening of the Alga Norte Community Park in FY 2013-14. 2 Increases in the number of enrichment class and special events participants are the results of overall higher attendance and including recategorized classes previously not classified or included as enrichment classes or special events in prior years. 3 The decrease in patron visits is due to the temporary closures of library facilities for remodeling during FY 2015-16. 4 The decrease is due to the time involved with the implementation of a new licensing system during FY 2016-17. 5 Reporting of information is not available for FY 20167-17 due to the implementation of a new permitting system. 6 Beginning in FY 2016-17, 2,500 acre feet of contracted desalinated water is included in the water purchase totals. 7 FY 2019-20 and FY 2020-21 had decreases in some public facing programs and services due to the impacts of the COVID-19 pandemic. 158April 4, 2023 Item #5 Page 191 of 195 {city of Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 9,544 9,455 8,495 8,012 5,469 6,578 292 311 345 248 198 376 58 44 66 66 24 79 8,142 4 11,267 9,546 10,180 10,164 9,736 41,304 41,869 43,520 44,128 41,164 41,315 84,858 90,760 99,562 112,323 110,448 107,156 5.9 5.8 5.7 5.5 5.2 5.2 8,884 8,643 8,705 8,774 8,222 8,704 12,183 12,520 12,833 13,331 12,345 13,837 78%76%76%75%75%70% - - - 157 119 48 1,280,000$ -$ -$ -$ 8,300,000$ 5,250,000$ 4,500 4,392 4,884 4,464 4,645 4,562 27,000 22,671 21,527 21,209 17,044 14,664 600 289 215 268 309 323 95,000 155,292 2,350,975 365,644 403,397 141,285 n/a 5 9,538 8,154 7,360 6,443 8,065 1,243,228 1,169,247 1,185,390 975,024 7 536,078 7 1,033,006 720,205 685,188 668,973 483,233 7 20,214 7 372,671 79 82 96 51 7 135 7 159 79,067 65,817 61,531 37,913 7 9,724 7 20,844 968 1,003 1,260 993 7 - 7 1,428 4,500 4,800 4,800 2,400 7 - 7 1,714 17,402 12,996 17,900 9,641 7 3,270 7 16,540 12,150 11,645 9,600 3,705 7 300 7 8,575 733 778 830 770 7 715 7 1,061 1,971 1,954 4,340 4,678 4,500 3,025 23.8 25.8 8.3 14.9 - 24.5 13.1 14.3 13.0 12.7 13.5 13.2 14,616 6 16,032 14,563 14,249 14,731 14,787 29,782 30,054 30,131 30,265 30,439 29,446 5.82 6.32 6.03 6.31 6.27 5.75 2,125 2,306 2,200 2,305 2,288 2,097 23,747 23,863 23,959 24,040 24,103 24,096 159April 4, 2023 Item #5 Page 192 of 195 Capital Asset Statistics Last Ten Fiscal Years 2012-13 2013-14 2014-15 2015-16 Community Services Number of parks and community fields 31 33 33 33 Acres of developed parks and community fields 183 281 319 319 Acres of open space and community fields 755 728 728 728 Miles of open space trails 47 47 47 47 Number of pools 1 3 3 3 Number of community centers 4 4 4 4 Number of libraries 3 3 3 3 Number of Materials in Library Collections 625,893 581,865 574,775 563,581 Public Safety Fire Protection Number of stations 6 6 6 6 Number of fire trucks 12 13 12 12 Number of ambulances 6 8 7 6 Number of other fire vehicles 15 16 15 18 Police Protection Number of patrol and other vehicles 88 114 114 106 Number of motorcycles 13 13 14 15 Public Works Carlsbad Municipal Water District Miles of pipelines 534 534 534 559 Wastewater Miles of sewers 288 288 288 288 Streets Miles of streets 343 346 347 348 Number of street lights 7,179 7,236 7,262 7,265 Number of traffic signals 174 174 177 177 Source: City of Carlsbad 1 During FY 2018-19, the number of vehicles was updated to include both active and reserve vehicles. 2 In FY 2019-20, a change in the reporting methodology was implemented to include all first responder vehicles. 3 In FY 2019-20, only active lines were counted. Prior years included abandoned and future lines. 160April 4, 2023 Item #5 Page 193 of 195 (city of Carlsbad 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 33 33 33 33 33 34 319 319 319 319 322 339 728 728 787 802 817 963 47 47 52 52 67 51 3 3 3 3 3 3 4 5 5 5 5 5 3 3 3 3 3 3 491,956 477,149 473,154 477,042 497,407 478,825 6 6 6 1 6 6 6 12 13 14 1 13 2 13 15 5 5 5 1 6 2 6 10 20 20 25 1 25 2 27 27 106 96 119 1 119 119 134 12 13 13 1 15 15 15 559 559 559 535 3 535 549 288 288 288 272 265 265 350 350 350 350 350 350 7,334 7,337 7,388 7,520 7,527 8,838 177 178 179 181 181 194 161April 4, 2023 Item #5 Page 194 of 195 T h i s p a g e is in te ntionally left blank. 162April 4, 2023 Item #5 Page 195 of 195