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Home My WebLink About2022-05-26; Growth Management Citizens Committee; ; Presentation SlidesMay 26, 2022Meeting 3 May 26, 2022 Carlsbad -v--:- TOMOR Growth Management Citizens Committee {city of Carlsbad Call to Order & Roll Call Carlsbad -v--: TOMOR Approval of Minutes Carlsbad -v--: TOMOR Public Comment Carlsbad -v--: TOMOR Welcome &Introductions Carlsbad -v--: TOMOR COMMITTEE PURPOSE Promote balanced consideration of a range of perspectives on issues affecting the future growth and quality of life in Carlsbad and identify the key elements of a new plan to manage growth in Carlsbad in a way that maintains an excellent quality of life while also complying with state law. Review and discuss draft recommendations (options) to be included in new quality-of-life standards Discuss & finalize report to be presented to City Council Orientation, background & history COMMITTEE PROCESS MAR –APRIL 2022 FEB 2023 Information & dialogue on a variety of topics/standards: •municipal finance •land use planning •city facilities •parks, libraries & schools •emergency response •circulation •water, drainage & sewer Discussion and recommendation development for future quality-of- life standards MAY –AUGUST 2022 SEPT –OCT 2022 NOV 2022 –JAN 2023 Draft recommendations available for public reviewCommittee meetings are open to the public and livestreamed. ••• ••• aa ••• a • •• a AGENDA •Discussion items –Committee business •City of Carlsbad budget •Financing & Growth Management •City Administration Facilities Performance Standards •Additional growth management topics •Committee member requests for agenda items •Public comment (continued if needed) •Adjourn 1.Committee Business Carlsbad -v--: TOMOR City of Carlsbad Finance Overview Carlsbad -v--: TOMOR TODAY’S PRESENTATION •Overview •Fund Structure •Funding Sources •Budget Process •Forecast •Policy {city of Carlsbad OPERATIONAL OVERVIEW •$350 million-plus organization •Diverse lines of business •Public facing services •Internal organizational services {city of Carlsbad FINANCE OVERVIEW Major lines of business: •General Accounting and Reporting •Purchasing •Payroll •Debt Management •Long-Range Financial Planning and Budget Management Annual Budget of approximately $5.5 million Employees: 26 full-time & 3 part-time TREASURY •Elected City Treasurer •Pooled investment portfolio •Reported to City Council monthly •Governed by Investment Policy compliant with CA Gov’t Code §53601 •Safety, Liquidity, Return •~$800 million portfolio {city of Carlsbad TREASURY !Investment cost IMarilicet '"'a lue Avernge 'Vield Clas,s O!Jrrent monti'll11 Prior month OJ rr,ent 1111,onth IPiriio month VTID lllilloome C!ull're1111trt mo nth Prior month IFA. $ 3.2.5,,'.1144,134 S 3,22, 2.9 6,400 $ 310,303,,863 $ 3 B 1863,405, s 2,ll!.96,,_546 0 .97%, 0.97% 28,r654,4012 27,438,941 27;901;389 4lllOA38 SN 28;165 4A012 1.53 1. 53 78,739,575 77,336,; 888 77A15;3i96 6,94t775 17R 79;812,21.2 0 .95 0.96 211,258,976, 200,573#064 206,974; 5,5,2 3,56,7t168 rCN 207; 9912,429 1.80 1. 80 20,0~,323 20,626,#.019 ll!.9;,764;3,14 204f624 OD 21;33,3,323 1.46, 1.43 22,922,765 21,146,A43 2'.11.#967;13,5, 284;,832 M BS, (ag,e cyJ 2215,98, 798 1.63 1. 62 MBS, (non,"ag:eincyJ o.oo o.cm Mluni 3631.003 0 .98 O. 85 53#33.1,642 48,137,48'.ll 50,154#,181 46,;342;5,70 !Bank accou1nt 1.00 OJU 6\t038,3lll0 10, 703,,438 6,038,310 1.0;,703,438 IRT 280 1.00 0J01 2_,901.,644 3,485,,268 2,90'.ll#.644 3A85,2r68 CAMIP' 343 0 .50 0.05 1,006,740 1,006,6,93 1,006,;,740 lll;.006,1693, LAIF 243t762 0 .42 0.20 80;,4'67,94.t 80,467,941. 80,46,7#941 80A67 ;19'41 ----------------------------------------Tot a 1 $7,965,,77lll 1.116% 1.13,% $829; 281,5716 $827 t 771,26,2 S 797,994#.035 $809,892f101 FA -F,eaerall agency notes SN -S'Up:ranational TR -IJII$ Trea SIIJI l'Y ON -Corpo:ratie notes, OD -iCen1lficate of d,e,posit MBS -Pass,thmugh/mongage lbaciked :sieo1.Jritfes Muni -Municipal! Bonds Bank a ooount -General cash acco1Jnlr Sweep -Ov,em fgiht cash acoou11 I RT -I nvestm1e,11t cash accou 1111 CAMP-Callifomi!a Asset Mana,gie,1me11t Program LAI F -Local ,Ar,ea lnv,e:stim,ent F1u nd {city of Carlsbad FUND STRUCTURE General Fund Special Revenue Funds Capital Projects Funds Enterprise Funds Internal Service Funds (cityof Carlsbad FUNDING SOURCES – GENERAL FUND $81.5M Property Tax Development-related $2.9M $28.8M Transient Occupancy Tax (Hotel Tax) $49.1M Sales Tax $7M Franchise Fees $23.3M Other Revenues Business License Tax $6.2M FUNDING SOURCES – SPECIAL REVENUE FUNDS $0.5M Donations and Grants $0.5M Affordable Housing $11.4M Rental Assistance $4M Maintenance Districts $0.5M CDBG $1M All Others □ □ {city of Carlsbad FUNDING SOURCES CAPITAL PROJECTS FUNDS General Fund Inter-governmental Enterprise Funds Developer Fees District Taxes {city of Carlsbad FUNDING SOURCES – ENTERPRISE FUNDS $9.6M Golf Course Operations $5M Solid Waste Mgmt $19.3M Wastewater Operations $47M Water Operations $8.7M Recycled Water {city of Carlsbad FUNDING SOURCES – INTERNAL SERVICE FUNDS $3.4M Vehicle Maintenance $4.7M Workers’ Compensation $4.3M Vehicle Replacement $14.8M Information Technology $3.4M Risk Management {city of Carlsbad BUDGET PROCESS COMMUNITY VISION STRATEGIC PLAN WORK PLAN ANNUAL BUDGET Citywi de 1expenses In , •m I S niiic _ $32-61 10 -·· Ge · 11 $31918,,3 51% Sp c1a1I R _ e,nu . $17-3 5% -Enterprise $92 .. 9 27% -=------~=--Fi'diu:ci. ry $1.1 I._· 1 General Fu1ndl r 1e·venues A-I 10th _r . _: · % Bu in lJic · 'J. •-~~ X 3,· I ,$198.8 mi lllio1n 15'_ GENERAL FUND FORECAST •A forecast is not a budget or a plan •Driven by assumptions at a point in time •Tool to understand where organization may be headed •Assumptions change constantly and continual updating is necessary {city of Carlsbad $21 ,00 $2.15,00[) .$21[),00D 521 ,000 .,. P'roj,ect,ed r,evenue, 'IO 5210,000 ~ ~ i S205.000 t:. 5200,000 5 g .000 5190,000 5 5,00 !~ FV23 lfll-We are her e FYZ4 Projected spending FY25 FY26 FY27 {city of Carlsbad POLICY •City Council Policy Statement No. 74 – General Fund Reserve •City Council Policy Statement No. 86 – Pension Funding •City Council Policy Statement No. 87 – General Fund Surplus •City Council Policy Statement No. 91 –Long Term General Fund Capital Funding Policy Financing & Growth Management Carlsbad -v--: TOMOR Questions Carlsbad -v--: TOMOR ECONOMIC RATIONALE FOR GROWTH MANAGEMENT •Obtain greater aggregate quality-of-life value by managing impact costs (externalities) and investing in public improvements •By internalizing public costs, decision-makers plan and design greater efficiencies to mitigate impacts •Assign funding responsibilities to those who benefit from the public facilities and services provided •Generate timely fiscal revenue to fund public improvements Population Economic Value or Utility PRINCIPLES •Transparent metrics for measuring quality-of-life objectives •A rational nexus •Fair share allocation of costs, benefits and responsibilities BASIS FOR GM POPULATION DEMAND FORECASTS •Total Population/Total Residential Units* •Current factor used = 2.404 persons per unit, based on 2020 Census * Residential units = residential units + accessory dwelling units + commercial living units like professional care facilities Applied: •Citywide •By quadrant •By Facility Management Zone to number of residential units planned Economics & Fiscal Considerations I Crty of Carlsbad Quadrants & LFMP Zones 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2010 Avg. HH Size 2020 Avg. HH Size GM Basis Per Unit Source: U.S. Census; American Community Survey Household = occupied unit Avg. HH size = household population/occupied units GM population per unit is not the same as average household size Difference is the vacancy rate Units is different than households ■ ■ ■ 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Est. 2022 Vacancy Rates MF Ownership Healthy Mkt. Source: CoStar; Rate.com; CITECON Vacancy rates are currently low GM population forecasts slightly lower (almost 2%): GM = 116,025 in FY21-22 Census = 114,746 in 2020 ■ ■ ■ INFLUENCES ON HOUSEHOLD SIZE CHANGE OVERTIME –CHANGING DEMAND FOR PUBLIC FACILITIES & SERVICES •% of families with children •Age distribution •Culture •Income distribution •Divorce rates •Residential product types available •Other factors OTHER INFLUENCES ON PUBLIC FACILITY DEMAND •% seasonal housing •Visitors •Location within city •Development patterns & densities •Employment growth Economics & Fiscal Considerations Employment/Households Relationship 1,052,214 1,333,731 994,677 1,130,703 46,152 52,54731,521 43,107 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2000 2020 SD County Employment SD County Households* Carlsbad Employment Carlsbad Households* Source: Bureau of Labor Statistics, U.S. Census Bureau; CITECONSource: Bureau of Labor Statistics, U.S. Census Bureau; CITECON * Average from 2016-2020 for 2020 data point 0.95 0.85 0.68 0.82 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 2000 2020 Households*/Job in Area SD County Carlsbad * Average from 2016-2020 for 2020 data point ■ ■ ■ ■ .,..,.,..,.,.,..,.,..,.,.,..,.,..,., .... .... .... .... .... ALLOCATING FISCAL COSTS 1.At build-out –growth caps 2.Phasing overtime –concurrency requirements State Laws now prohibit caps – How should Carlsbad address growth after GM build-out numbers are reached? Average Cost Approach*Marginal Cost Approach* Units 2,000 Facilities 1st generation Costs $100,000,000 Fee/Unit $50,000 Units 400 Facilities 2nd generation increment Marginal Costs $10,000,000 Fee/Unit $25,000 * Hypothetical Illustrative Two-Tier Approach - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Year 10 Year 20 Year 30 Year 40 After Year 40 Units Average Cost Basis Marginal Cost Basis Original GM Build-out Threshold '----........... -----' 1----------------1 .. General Plan technical requirements compliance policies & strategies STANDARDS DRIVE COSTS •Geography served •Development patterns •Plan & design efficiencies •Location efficiencies •Co-benefits •Equity •Priorities SOURCES OF FUNDING Impact fees Mello-Roos Community Facilities Districts Benefit Assessment Districts Subdivision exactions & dedications Capital Operations & Maintenance SOURCES OF FUNDING Capital Operations & Maintenance Other Potential Mechanisms GO bonds Special purpose tax districts Tax increment Grants and subventions Negotiated and value capture techniques Tax sharing agreements & JPAs P3 financing General funds Others Visitors Location within city Development patterns & densities Employment growth Questions Carlsbad -v--: TOMOR City Administration Facilities Performance Standard Carlsbad -v--: TOMOR CITY ADMINISTRATIVE FACILITIES PERFORMANCE STANDARD 1,500 square feet per 1,000 population (citywide) When need is first identified, facilities must be scheduled for construction: •Within a five-year period; or •Prior to construction of 6,250 dwelling units BACKGROUND •Origin –Council Policy 32 (1982) ➢Established first public facility standards ➢Admin. Facilities –1,150 sq. ft. per 1,000 population ➢Square feet needed for employees to serve target population •Updated when Growth Management Plan adopted in 1986 CITY ADMINISTRATIVE FACILITIES ADMINISTRATIVE FACILITIES CURRENT STATUS •Current population (June 2021) = 116,025 •Current demand = 174,038 sq. ft. •Supply exceeds demand (203,936 sq. ft.) CITY ADMINISTRATIVE FACILITIES CURRENT ADMINISTRATIVE FACILITIES Facility Square Feet City Hall 16,000 Faraday Building 68,000 Fleet Service Center 10,540 Water District (maintenance & operations)18,212 Parks Yard (maintenance & operations)4,012 Public Works Operations 9,950 Safety Center (Police & Fire)55,027 First Responder Safety Training Center 15,090 Senior Center 5,770 Harding Community Center 1,335 Total 203,936 ADMINISTRATIVE FACILITIES BUILDOUT ANALYSIS •Buildout population estimate = 133,249 •Buildout demand = 199,874 sq. ft. •Supply exceeds demand (203,936 sq. ft.) •Future projects planned ➢Orion Center ➢New City Hall CITY ADMINISTRATIVE FACILITIES 1111111 {city of Carlsbad CFD #1 FACILITIES FUNDING •New facilities funded by CFD1 (tax) •Vacant land and new development pay taxes •CFD 1 tax not applicable in Zones 1 –4 and 6 •CFD1 tax goal -$195 million •$81 million spent to date on public facilities •Estimate $114 million to be spent in future CITY ADMINISTRATIVE FACILITIES ndary ortheas Oua ran uadt t uadran Southwest Quadrant City of Carlsbad Quadrants & LFMP Zones CURRENT AND FUTURE PROJECTS CITY ADMINISTRATIVE FACILITIES Community !Fa cilities Distirk t No. 1 P1roject Sclhedule Ju y 1, 2:021 Current and Future Projects: Civic Cent er Civic Cent er ( armer's Bldg urchase) Li brnry (Future Col,e Expans io n) Orion Center (Public Works Center) Orion Center (Cam. Vida Roble Bldg Purchase) Veter:an's emorial Park Completed !Projects: Ca non Road @ 1-5 Cannon Road Vi/est arad;;y Avenue Costa Avenue C-0sta I ercha,nge Li br.ary (Learning Cen ,er) Li brary (S. Ca,rlsbad) Dlivenhain/Rancho Santa e Road .a,lomar Airport Ro.ad Int erchange ,o i ns-etti a, I nte rcha nge otal Project Budget $ 51,028,105 $ 15,733,172 5,988,000 32,778,158 2,480,000 27,547,.200 422,840 6,528,5 6 5,423,394 6,200,095 7,329,516 4,501,717 14,4 3,717 5,700,000 2,667,496, 6,469,457 $ 195,241,4 1.3 $ Carryfori.vard Year 1 Une.xpen ed To al E)l!pens,es Budget B dgeted to Date 2020-21 2021-22 233,.555 $ 794,550 $ - 15,733,172 -- --- 2,312,937 29,743,331 721,890 2,480,000 -- 565,103 1,272,097 1,.275,000 422,8 0 6,528,5 6 5,423,39 6,200,095 7,329',.516 4,501,717 14,443,717 5,700,000 2,667,496 6,469,457 81,011,545 $31,809,978 $ 1;996,890 Future Expenditures Year 2 Year 3 Year 4 Year 11 Ye.ar 13 Budgeted Budgeted Budgeted Budgeted Budgeted Total ut ure 202.2-23 2023-24 2024-25 2031-32 2033-34 Expenditures $ -$ -$ -$ so,cmo,ooo $ -$ 50,794,550 ------ ----5,988,000 5,988,000 -----30,465,221 ------ 1,.175,000 1,175,000 22,0 85,000 --26,982,097 - - - - - - - - - - - - $ 1,175,000 $1,175,000 $ 2.2,085,000 $ 50,000,000 $5,988,000 $ 114,229,868 OTHER STANDARDS •Administrative facility standard unique to Carlsbad •Future workforce changes may affect facility space •Some cities plan to reduce building footprint ➢Alternative employee schedules ➢Technology changes –more online services ➢Environmental benefit –reduce greenhouse gas emissions •Future demand for administrative space is unclear CITY ADMINISTRATIVE FACILITIES 1111111 DISCUSSION QUESTIONS •Is this standard important to quality of life in Carlsbad? •Should this standard be re-evaluated in any way? Additional Growth Management Topics Carlsbad -v--: TOMOR MEETING TOPICS & SCHEDULE ADDITIONAL TOPICS DATE/TIIME POTE1NTI AL TO,PIC:S June 23~ 2022 Waste ater treatmerr~ dra·nage. sewe and water 5 P· m. di stiri bution, sch oo,ls July 28~ 2022. 5 p.m. Aug. 25 2022 5 p.m. . raries, parks a d open space Traffic and mo b1 I ity ci re u ~at1 on, emergency res onse (cityof Carlsbad WHAT WE’LL COVER •Funding of sewer and water facilities during buildout •Water and desalination •How school growth is monitored and managed •Parks standards •Law enforcement/public safety issues •Fire response times/services •Circulation/traffic ADDITIONAL TOPICS {city of Carlsbad WHAT’S ADDRESSED BY OTHER CITY EFFORTS •Aging community ✓Age Friendly Action Plan •Power and renewable energy ✓Clean Energy Alliance ✓Climate Action Plan •New City Hall and Civic Center ✓Site, scoping and planning analysis ✓Public input summary report ✓Presentation to City Council in summer 2022 ADDITIONAL TOPICS WHAT’S ADDRESSED BY OTHER CITY EFFORTS •Sea level rise ✓Sea Level Rise Vulnerability Assessment ✓Draft Local Coastal Program Land Use Plan •Arts and culture ✓Arts & Culture Master Plan •Homeless issues and impacts ✓Homeless Response Plan ADDITIONAL TOPICS WHAT’S ADDRESSED BY OTHER CITY EFFORTS •Walkability and connectivity ✓Sustainable Mobility Plan •Leveraging technology ✓Strategic Digital Investment Plan ✓Connected Carlsbad Roadmap •Where we can grow as population increases ✓Housing Element ADDITIONAL TOPICS RESOURCES AGE-FRIENDLY CARLSBAD ACTION PLAN Building an age-friendly city for all ages • •• • • ••• •• .. •• • • • • • CONNECTED CARLSBAD An Inclusive City Innovation Ro dmap ,.,,, .. ,y 1, ;l0ll) • •••• Committee Member Requests for Future Agenda Items Carlsbad -v--: TOMOR Public Comment Carlsbad -v--: TOMOR Adjournment Next Meeting: June 23, 2022 Carlsbad -v--: TOMOR