HomeMy WebLinkAbout2023-05-16; City Council; ; Economic and Financial Update for the Third Quarter of Fiscal Year 2022-23CA Review CKM
Meeting Date: May 16, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Zach Korach, Finance Director
zach.korach@carlsbadca.gov, 442-339-2127
Matt Sanford, Economic Development Manager
matt.sanford@carlsbadca.gov, 442-339-5987
Subject: Economic and Financial Update for the Third Quarter of Fiscal Year
2022-23
Districts: All
Recommended Actions
Receive a report on the economic and financial update for the third quarter of fiscal year 2022-
23 and provide direction as appropriate.
Executive Summary
The City Manager has committed to providing quarterly updates to the City Council on the
economic outlook and the city’s finances. The update reviews the city’s economic and fiscal
health and serves as a measure of budgetary performance. While substantial recovery from the
COVID-19 pandemic has occurred, economic uncertainty has increased fueled by, among other
factors, geopolitical conflict and rising inflation.
In this report, staff will provide a presentation on:
•National, state, regional and Carlsbad-specific economic data
•The city’s most recent financial data
This report details recent economic trends and information on current impacts to our local
economy. In line with regional trends, Carlsbad saw increases in revenues in almost all
categories when compared to the same quarter in the previous fiscal year, and expenditures
are in line with the prior year’s rate of spending.
Explanation & Analysis
Economic update
Carlsbad’s economy is diverse, has strong industry clusters and is a leader in innovation.
According to the most recent biennial business survey of Carlsbad businesses, released in
January 2022, five key industry clusters are driving growth:
•Life sciences
•Information, communications and technologies
•Cleantech
•Sports innovation and design
•Hospitality and tourism
May 16, 2023 Item #8 Page 1 of 25
The gross regional product for Carlsbad is $15.8 billion, indicating that Carlsbad has the largest
economy in the county behind the City of San Diego. Companies that call Carlsbad home are at
the forefront in areas of technology and innovation, and the city’s hospitality and tourism
industry generates the second-highest amount of transient occupancy tax, the tax on local
hospitality stays, among the county’s 18 cities.
In 2022, Carlsbad’s economy grew by roughly $1.07 billion, with a total gross regional product
of $15.8 billion. Growth occurred in all sectors except the mining and oil and gas extraction
sector, which contracted slightly. Wholesale trade, manufacturing, professional, scientific and
technical services, and hospitality and food service were the leading growth sectors for
Carlsbad in 2022.
Through most of 2022, Carlsbad’s unemployment rate fluctuated between 2% and 3%. In
January, the unemployment rate jumped to 3.4% and ticked up to 3.5% in February and March.
Macrotrends in the tech industry are pushing unemployment up nationally, but the labor
market is still seen as being very tight. The unemployment rate in March was 4.8% at the state
level and 3.7% at the county level.
In the first quarter, the financial industry was impacted by the failure of Silicon Valley Bank
(SVB). SVB was a major player in the entrepreneurship and startup ecosystem. The ripple
effects of the SVB failure, and the subsequent failure of First Republic Bank, could have
tumultuous impacts for San Diego and Carlsbad-based startups and entrepreneurs – a key focal
point in the city’s Economic Development Strategic Plan. Combined with the continued rise in
interest rates, capital will be harder to access for some developing companies. This could stunt
growth and potentially lead to downsizing. Some economists are predicting the United States is
at or near the peak of inflation, although many predict continued interest rate hikes are likely.
With these pressures on the financial system, most economists agree that a recession is
looming, although the length and severity is debated.
The continued rise in interest rates is also impacting property values in Carlsbad. The median
home price in Carlsbad fell $98,000 in the last quarter. Median home prices rose consistently in
Carlsbad between March 2019 and July 2022 and have since been falling. The current median
home price is $1,338,506, which is roughly equivalent to the median home price in December
2021.
Commercial real estate was more resilient last quarter in Carlsbad, with rental rates continuing
to rise in all categories, office, industrial and retail. However, commercial developers are largely
holding off on building new developments and office space elsewhere in the region and the
county is seeing a rise in vacancy and a drop in value, an indicator of instability.
To ensure the city remains responsive to the changing landscape, staff have capitalized on
greater in-house economic data capabilities and analytics developed over the past year to
publish a quarterly economic scan. The full economic scan for the third quarter of fiscal year
2022-23 is provided as Exhibit 1. Staff also publish relevant data on the city’s economic
development site, carlsbadca.gov/doingbusiness.
May 16, 2023 Item #8 Page 2 of 25
Financial update
The COVID-19 pandemic created immense uncertainty in the city’s revenues, most notably in
sales tax and transient occupancy tax, the tax assessed on local hotel and motel stays. The fiscal
year 2021-22 adopted budget had anticipated continued adverse impacts from the pandemic
with moderate recovery. However, based on audited financial statements for fiscal year 2021-
22, General Fund revenues in total, specifically property, sales and transient occupancy tax
revenues, reached historically high levels. This was mainly due to the staggered removal of
COVID-19 restrictions, coupled with pent-up demand and inflationary increases.
While recovery from the pandemic was accelerated compared to original estimations, new
uncertainty surrounding the economy is looming. Significant inflation and its impacts on
disposable income, personal savings, tourism and the housing market indicate that maintaining
a conservative outlook for the city’s revenues is prudent. The March 2023 Financial Status
Report is provided as Exhibit 3.
Revenues
The majority of health order restrictions on businesses have been lifted since the fiscal year
2021-22 budget was adopted in June 2021, and the results have been positive across most of
the city’s revenue streams. The General Fund’s top three revenue sources – property, sales and
transient occupancy tax – reached historic highs in fiscal year 2021-22. The fiscal year 2022-23
adopted budget took a conservative approach at estimating these revenue sources. However,
year-over-year increases through the second quarter are notably positive given the amount of
uncertainty in the economy. The table below shows the differences in revenue when comparing
quarter 2 of fiscal year 2022-23 with the same period in the prior fiscal year.
Fiscal year 2022-23 year to date revenues as of March 2023
compared to fiscal year 2021-22 as of March 2022
Revenue category Change ($) Change (%)
Transient occupancy tax $4,352,601 20%
Property tax $4,102,929 8%
Sales tax $3,510,930 9%
Charges for services $1,895,078 26%
Investments, property income $732,045 19%
Interdepartmental charges $452,627 12%
Licenses and permits $383,304 20%
Other revenues sources $72,601 8%
Fines and forfeitures $48,477 19%
Intergovernmental -$237,299 -21%
Other taxes -$390,969 -4.5%
As noted above, the city’s three major revenue sources are property tax, sales tax and transient
occupancy tax.
May 16, 2023 Item #8 Page 3 of 25
Property tax
The majority of property tax revenue is collected in December and April each year.
Increases through the third quarter are due to an increase in assessed property values
and aircraft taxes as a result of additional aircraft being housed at the airport.
Sales tax
Sales tax revenues to date represent receipts that were collected for the third and
fourth calendar quarters of 2022, but they also include a portion of the city’s sales tax
receipts from January 2022 through June 2022, as well as the first advance of the city’s
sales tax revenues from the first calendar quarter of 2023.
The prior fiscal year saw accelerated recovery from the impacts of COVID-19 and ended
with historical levels of revenues. For sales occurring in the fourth calendar quarter of
2022, the city experienced gains over the same period last year, primarily in the
categories of new auto sales and light industry. While much uncertainty remains
surrounding inflation and its impacts on disposable income and savings, increased
inflation appears to be increasing the level of sales tax revenues through the third
quarter.
Transient occupancy tax
Year-to-date transient occupancy tax figures represent taxes collected on hotel receipts
through the month of February 2023. The revenues received through the third quarter
represent an increase of $4.3 million, or 20% when compared to the same year to date
period last year. This increase is largely due to a small increase in the average daily room
rate and an increase in occupancy rates (70.8% up from 65.0%).
Expenditures and encumbrances
Overview
Total General Fund expenditures and encumbrances – those funds either spent or committed
for specific expenses – through the month of March 2023 are $165.3 million, compared to
$163.2 million at the same time last year. While the year-over-year change is $2.1 million, or
1.3%, there are varying factors in how each of the respective years’ expenditure totals are
derived.
During the first three quarters of fiscal year 2021-22, the City Council authorized:
• $10.7 million transfer related to the Technology Investment Program in support of the
Strategic Digital Transformation Investment Program
• $7.8 million transfer to the General Capital Construction Fund from fiscal year 2020-21
General Fund surplus
• $5.5 million additional discretionary payment to CalPERS, the state’s public employees
pension system
During the first three quarters of fiscal year 2022-23, the City Council authorized:
• $10.2 million transfer to the city’s Workers’ Compensation Internal Service Fund
• $1 million transfer to the city’s Risk Management Internal Service Fund
• $1.4 million transfer to the city’s Fleet Maintenance Internal Service Fund
May 16, 2023 Item #8 Page 4 of 25
Surplus
On an annual basis, staff recommend to the City Council one-time expenditure uses for any
surplus in the city’s General Fund. City Council-authorized expenditures of the General Fund of
surplus were greater than in 2022-23. Although the fiscal year 2022-23 adopted budget was
$13.8 million, or 7.5%, greater than the previous year, the difference in the authorized surplus
expenditures contributed to comparable expenditure totals in both years.
Excluding the transfers out, contingencies and certain non-departmental charges, the
percentage of available budget on March 31, 2023, is 28.3%, slightly less than the 28.4%
available in the prior year on March 31, 2022.
Pension funding
CalPERS and pension funding has been and will continue to be a challenge for participating
agencies like the City of Carlsbad. CalPERS administers the city’s defined benefit pension plan,
and costs have been increasing in past years as CalPERS addresses a structural shortfall in plan
assets to cover unfunded liabilities.
In support of CalPERS’s strategies for plan sustainability, and as part of the city’s strategic, long-
term approach to financial management, the city actively manages its unfunded pension
liability. Since fiscal year 2016-17, the City Council has approved additional discretionary
payments totaling $56.4 million to decrease future costs of the city’s unfunded actuarial liability
and the city strives to achieve a funded status of 80% in accordance with City Council Policy
Statement No. 86, the city’s pension funding policy.
In CalPERS’s latest actuarial valuation report (as of June 30, 2021), the city had a combined
pension funded status of 86%, which was predominantly driven by CalPERS’s fiscal year 2020-21
investment return of 21.3%. This positive return will not impact the city’s required
contributions until fiscal year 2023-24. CalPERS recently announced a preliminary net
investment return of -6.1% for fiscal year 2021-22, which will significantly reduce the city’s total
funded status and have a tremendous impact on the city’s future costs. This negative return will
not impact the city’s required contributions until fiscal year 2024-25. Staff will continue to
monitor CalPERS’s strategies and performance and report to the City Council as necessary and
appropriate.
Enterprise funds
The city’s water and wastewater enterprise funds1 continue to operate in line with budgeted
expectations. The city’s municipal golf course, The Crossings at Carlsbad, continues to exceed
budgeted estimates due to higher-than-expected demand for golf.
Fiscal Analysis
This is an informational item with no fiscal impact.
1 Enterprise funds are government funds usually used to account for operations that are financed and operated in
a manner similar to private business enterprises, with the services provided paid for primarily through user
charges.
May 16, 2023 Item #8 Page 5 of 25
Next Steps
The city will continue to develop tools to understand the economy, attract businesses and
cultivate talent.
Staff will continue to provide quarterly updates to the City Council on the economic outlook
and the city’s finances.
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. 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. Economic Scan Fiscal Year 2022-2023 Q3
2. March 2023 Financial Status Report
May 16, 2023 Item #8 Page 6 of 25
1
Third Quarter, Fiscal Year 2022-2023
The following scan provides an overview of key economic indicators for January, February, and March 2023
for the City of Carlsbad. This economic scan is updated quarterly to provide information that is relevant to
the health of Carlsbad’s economy. For regularly updated information regarding the Carlsbad economy and
economic development visit carlsbadca.gov/doingbusiness.
GROSS REGIONAL PRODUCT
Carlsbad GRP (Source: Lightcast, 2022)
$15.8B
In 2022, Carlsbad had the second largest gross regional product
in San Diego County at nearly $15.8B, only trailing the City of San
Diego. In 2019, Carlsbad’s economy grew by $800 million to nearly
$13.6 billion. In 2020, as a result of the pandemic, the city’s GRP
remained flat. In 2021, Carlsbad’s economy grew by approximately $1 billion, to nearly $14.6 billion. From 2021 to 2022, Carlsbad’s
GRP grew by $1.07B. This growth was seen across almost all
industry categories, and was led by manufacturing, wholesale
trade, hospitality, and professional, scientific, & technical services.
JOBS
Unemployment Rate (Source: California Employment Development Department, March 2023 Report)
Through most of 2022, Carlsbad’s unemployment rate fluctuated between 2% and 3%. In January, the unemployment rate
jumped to 3.4% and ticked up to 3.5% in February and March. Macro-trends in the tech industry are pushing unemployment up
nationally, but the labor market is still seen as being very tight. The unemployment rate in March was 4.8% at the state level and
3.7% at the county level.
0
1
2
3
4
5
6
7
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Carlsbad Unemployment Rate 2022 vs 2023
2022 2023
0
1
2
3
4
5
6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Unemployment Rate Comparison 2023
Carlsbad San Diego County
North County Avg w/o Carlsbad California
Innovation + Economic Development Department
Exhibit 1
May 16, 2023 Item #8 Page 7 of 25
Economic Scan {city of
Carlsbad
2
Job Postings (Source: Lightcast, January - March 2023)
12,258
There were 12,258 unique job postings in Carlsbad between January and March, a decrease of about 1,100 jobs from the
previous quarter, and the third consecutive quarterly decrease. The
median advertised salary for these postings was $51,100, which is
on average $5,000 more than jobs posted in the previous quarter,
an indicator of wage inflation. Of jobs posted, 70% indicated an education requirement of High School/GED or no requirement
listed. 65% of postings indicated no experience was required,
indicating that entry-level positions are difficult to fill and retain.
TALENT + WORKFORCE
Education (Source: 2021 ACS 5-Year Estimates, the latest year available)
Carlsbad has established itself as having
the right workforce to fuel innovation
in tech and life sciences fields. Carlsbad
businesses can access talent from San
Diego County, Orange County, and even
southwest Riverside County. More than
60% of working-age residents hold a
bachelor’s degree, with nearly 25%
attaining an advanced degree. Outside of
some communities in central San Diego,
Carlsbad has the heaviest concentration
of households with degrees in
science, technology, engineering, and
mathematics (STEM degrees). This local
talent mix is among the leading reasons
that firms choose Carlsbad.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%40.00%
Less Than
High School
High School
Diploma
Some College,
no Degree
Associate's
Degree
Bachelor's
Degree
Graduate or
Professional
Degree
Educational Attainment Comparison Percent of
Population Over 25 Years Old
National California San Diego County Carlsbad
Nearby public and private universities
offer top-notch programs. Within a 30-
mile radius, more than a half-dozen
universities and colleges confer more
than 35,000 degrees annually. The
Carlsbad business community works
closely with higher education partners
to align various education tracks
with local workforce needs.
Talent Pipeline Degrees Conferred by University,
Displayed as Distance from Carlsbad
San Diego State University9,671
Proximity in Miles from CarlsbadMay 16, 2023 Item #8 Page 8 of 25
0
~
.•• _ 111, 1111 ... .--111 111l
■ ■ ■ ■
GK Cal State
MiraCoSta San Marcos sK c;~:!e 3,578
" :: l
UC San
Diego
10,266
National
University
5,322
University of
San Diego
2,780 ....
3
CAPITAL
Interest Rates (Source: U.S. Department of the Treasury, March 2023)
National interest rates continue to rise as the Federal Reserve raises rates to combat inflation. One-year rates are currently
at 4.64%. Ten-year rates are currently at 3.48%. 30-year rates are currently at 3.67%. Combined with the continued rise
in interest rates, capital will be harder to access for some developing companies. This could stunt growth and potentially
lead to downsizing. Some economists are predicting the United States is at or near the peak of inflation, although many
predict continued interest rate hikes are likely. With these pressures on the financial system, most economists agree that
a recession is looming, although the length and severity is debated.
March 2022
One-year interest rate 1.63%
10-year interest rate 2.32%
30-year interest rate 2.44%
March 2023
One-year interest rate 4.64%
10-year interest rate 3.48%
30-year interest rate 3.67%
COMMERCIAL REAL ESTATE
Market Vacancy Rates and Rent per Square Foot (Source: CoStar, March 2023)
Commercial vacancy rates remain relatively steady across all
categories. The industrial vacancy rate ended the quarter at 3.6%.
The office vacancy rate in March was 12.6%. Retail vacancy in
March was 5.8%.
Rental rates were also relatively steady across all categories.
Average market rents per square foot, per year for office rates
in March were $38.60. Industrial rates in March were $19.40.
Retail rates in March were $44.49.
Commercial developers are largely holding off on new
developments and office space elsewhere in the region and the
county is seeing a rise in vacancy and a drop in value, an indicator
of instability. This trend is predicted to continue.
3.6%
Industrial vacancy rate
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
2020
Q1
2020
Q2
2020
Q3
2020
Q4
2021
Q1
2021
Q2
2021
Q3
2021
Q4
2022
Q1
2022
Q2
2022
Q3
2022
Q4
2023
Q1
Carlsbad Commercial Vacancy Rates
Carlsbad Retail Carlsbad Office Carlsbad Industrial
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Retail Office Industrial Retail Office Industrial
Carlsbad North County w/o Carlsbad
Vacancy Rate Comparison
2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1
2022 Q2 2022 Q3 2022 Q4 2023 Q1
May 16, 2023 Item #8 Page 9 of 25
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4
TOURISM
Occupancy averaged 65.3% in the third quarter, which exceeded the same quarter for 2022 (63.3%). The impacts of inflation and
a potential recession could hamper tourism globally, but Carlsbad is well-positioned as a destination that will could see strong
tourism through a recession.
42 With 42 hotels in Carlsbad, tourism is a major industry in terms of
employment and economic impact. It is also a major contributor
to city revenue, through TOT and sales tax generation. Below
are several indicators reflecting the health of the city’s tourism economy.
Hotel Occupancy (Source: Smith Travel Research, March 2023 Report)
Carlsbad’s average daily room rate (ADR) continues to exceed historic norms. ADR averaged $195.63 in the third quarter,
compared to $179.98 for the same quarter in 2022. Because of the elevated occupancy rate and higher ADR, Tourism is on track
to finish the fiscal year ahead of projections.
Hotel Average Daily Room Rate (Source: Smith Travel Research, March 2023 Report)
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avgerage Daily Rate 2022
City of Carlsbad San Diego County, CA City of Oceanside, CA
City of Newport Beach, CA City of Carlsbad, 2019
0
20
40
60
80
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Hotel Occupancy 2022
City of Carlsbad San Diego County, CA City of Oceanside, CA
City of Newport Beach, CA City of Carlsbad, 2019
0
20
40
60
80
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Hotel Occupancy 2023
City of Carlsbad San Diego County, CA City of Oceanside, CA City of Newport Beach, CA
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avgerage Daily Rate 2023
City of Carlsbad San Diego County, CA City of Oceanside, CA City of Newport Beach, CA
May 16, 2023 Item #8 Page 10 of 25
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5
INCOME + HOUSING
Median Household Income (Source: 2021 ACS 5-Year Estimates, the latest year available)
Median household income in Carlsbad continues to exceed county income levels. The median income for a household
in Carlsbad in 2021 was $124,669, (adjusted for inflation), which was $33,666 higher than the county median income.
Carlsbad has generally outpaced the region in terms of household income growth.
Median Home Price (Source: Zillow Home Value Index - March 2023)
The continued rise in interest rates has impacted property values in Carlsbad. The median home price in Carlsbad fell
$98,000 in the last quarter. Median home prices rose consistently in Carlsbad between March 2019 and July 2022 and have
since been falling. The current median home price is $1,338,506, which is roughly equivalent to the median home price in
December 2021.
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
$1,600,000
2019 2020 2021 2022 2023
Carlsbad Median Home Price
Jan 2019 - Present
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Median Home Price Comparison -2023
Carlsbad North County Avg
May 16, 2023 Item #8 Page 11 of 25
2016 2017 2018 2019 2020 2021
City of Carlsbad
Median Household Income $113,217 $102,722 $107,172 $123,409 $112,933 $124,669
County of San Diego
Median Household Income $70,824 $70,588 $74,855 $79,324 $82,426 $91 ,003
City of Carlsbad
per Capita Income $49,349 $52,560 $55,518 $63,079 $57,607 $65,430
County of San Diego
per Capita Income $32,482 $34,350 $36,156 $40,389 $39,737 $44,377
6
BUSINESS ACTIVITY
Business Licenses (Source: City of Carlsbad, March 2023)
There were a total of 2,940 business licenses issued last quarter, including 1165 non-residential, 817 residential, and 958 outside-
the-city licenses. This is an increase of 130 total businesses over the same quarter of 2022.
The number of licenses issued does not reflect the number of businesses in Carlsbad as a business may carry multiple
licenses, short-term vacation rentals are required to get a license, and businesses outside of Carlsbad that do business
in the city or with the city are required to get a license. It is estimated that there are approximately 6,747 businesses
in Carlsbad.
Building Permits (Source: City of Carlsbad, March 2023)
Between October and December, permit activity increased for residential building permits (1,349), continuing a strong
trend. The number of residential building permits issued has been generally increasing over the past several years.
Commercial permits issued (83), continued a slowing trend in commercial development over the last four quarters,
matching projections of a slowdown in commercial real estate development.
0
200
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600
800
1000
1200
1400
1600
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2020 2021 2022 2023
Building Permits Issued
Q1 Q2 Q3 Q4
0
500
1000
1500
2000
2500
3000
3500
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Business Licenses Issued by Quarter
Non-Residential Residential Outside City Total
May 16, 2023 Item #8 Page 12 of 25
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7
INDUSTRY CLUSTERS
Life Sciences (Source: 2022 Business Report and Industry Cluster Update)
The Life Sciences industry cluster employs 6,657 workers across 134 firms and experienced a 2.6% increase in employment
between 2018 and 2020. The cluster is 5.51 times more concentrated in Carlsbad than the national average and annual
wages per worker average $123,702.
San Diego County and California have experienced parallel employment growth in the Life Sciences cluster between
2010 and 2020. In the same ten-year period, employment in Carlsbad grew by 75%. Between 2016 and 2018, Carlsbad
experienced over 40% growth. Over the past two years (2018-2020), however, employment growth tapered off compared
to years prior.
Technology (Source: 2022 Business Report and Industry Cluster Update)
The Information and Communications Technologies (ICT) cluster employs 9,008 workers across 343 firms in Carlsbad and is
2.75 times more concentrated in Carlsbad than the national average. Annual wages per worker average $136,254, and the
ICT industry cluster experienced a 3.3% increase in the number of jobs between 2018 and 2020.
San Diego County and California experienced steady parallel growth in the ICT cluster between 2010 and 2020. In the same ten-year period, Carlsbad experienced an initial decline in employment between 2012 and 2015; between 2015 and 2020,
employment in the ICT cluster has steadily trended upwards.
Clean Technology (Source: 2022 Business Report and Industry Cluster Update)
Between 2018 and 2020, the number of workers employed at Cleantech firms increased by 22.2%. By 2019, the 48
Cleantech firms in Carlsbad employed more than 872 people. The average annual wage per worker is $109,779, and the
Cleantech industry cluster in Carlsbad is 4.66 times more concentrated than the national average.
Between 2010 and 2012, Carlsbad experienced an initial employment drop for the Cleantech industry followed by steady
growth between 2012 and 2020. Employment growth in California peaked in 2013 and has been on a steady decline since.
Growth in San Diego County also peaked in 2013, dropping by over 25% between 2013 and 2017. Since 2017, employment
in the Cleantech cluster for San Diego County has been on a steady increase.
Sports Innovation & Design (Source: 2022 Business Report and Industry Cluster Update)
The Sports Innovation & Design industry cluster employs 1,804 workers across 116 firms and experienced a 16.3% decrease
in employment between 2018 and 2020. The cluster is 5.06 times more concentrated in Carlsbad than the national average
and annual wages per worker average $75,652.
Employment in the Sports Innovation & Design cluster has steadily declined since 2013 in Carlsbad. Both San Diego County
and California have declined steadily since 2015 and experienced sharp declines between 2019 and 2020, likely due to the
COVID-19 pandemic.
Hospitality & Tourism (Source: 2022 Business Report and Industry Cluster Update)
Carlsbad’s Hospitality & Tourism cluster is about 1.35 times more concentrated in Carlsbad than the national average and
employs 9,179 people across 467 businesses. Hospitality & Tourism experienced a sharp 34% decrease in employment
between 2018 and 2020, driven by the effects of the COVID-19 pandemic between 2019 and 2020. Average annual wages
per worker remain low relative to other key industry clusters, with workers earning $31,315 on average.
Carlsbad, San Diego County, and California experienced sharp declines between 2019 and 2020, during which sub-clusters
like Theater Companies and Dinner Theaters, Amusement and Theme Parks, and Amusement Arcades were shut down to
mitigate the effects of the COVID-19 pandemic.May 16, 2023 Item #8 Page 13 of 25
8
INDUSTRY IMPACT
Largest Industries (Source: Lightcast, March 2023)
Carlsbad’s economy significantly exceeds the national average in manufacturing, accommodation and food services,
and professional, scientific and technical services jobs. These sectors, which would include tech, life sciences, and other
innovation industries are generally more resilient to recessions, also represent significant job growth in the economy.
GRP by Industry
Industry size by employment
May 16, 2023 Item #8 Page 14 of 25
• Gross Regional Product
Manufacturing
Professional, Scientific, and Technical Services
W holesale Trade
Finance and Insurance
Retail Trade
Government
Information
Accommodc1tion and Food Services
Health Care and Social Assistance
Real Estate and Rental and Leasing
Administrative and Support and Waste Management and
Remediation Services
Management of Companies and Enterprises
Arts, Entertainment, and Recreation
Construction ----
Utilities
Other Services {except Public Administration)
Transportation and Warehousing
Educational Services
Agriculture , Forestry, Fishing and H unting
$0.000 $500.0M
• Industry Jobs
Professional, Scientific, and Technicc1I Services
Manufacturing
Accommodation and Food Services
Retail Trade
Government
Health Ca..-e and Social Assistance
Wholesale Trade
Arts, Entertainment, and Recreation
Administ..-ative and Support and Waste Management and
Remediation Services
Other Services (except Public Administration)
Construction
Finance and Insurance
Real Estate and Rental and Leasing
Educational Services
Management of Companies and Enterprises
Information
Transportation and Warehousing
Utilities
Agriculture, Forestry. Fishing and Hunting
,_
I
I
I
I
0 2,000
$1.0008 $1.5008
• National Average
I
I
I
I
I
4,000 6,000
$2.0008 $2.5008
,_
8,000 10,000 12,000
9
INNOVATION
Patents (Source: 2020 Carlsbad Industry Cluster Patent Update)
Four of the key industry clusters mentioned above drive innovation activity in Carlsbad. The figure below shows that while
the life sciences cluster has been a long-term driver of the city’s innovation economy, information & communications
technology patents have seen dramatic growth over the past ten years and was responsible for virtually the same number
of new patents as life sciences in 2019. It is also worth noting that clean technology, which is the industry cluster with the
lowest number of patents, has grown by more than 800% since 2009. All told, these four industry clusters accounted for
96% of all patents awarded to Carlsbad firms in 2019.
Patents per Capita
2019 Patents per 1,000 Workers in the Labor Force
Carlsbad has a notably higher proportion
of patents per 1,000 workers—over 60%
more than the next-closest competitor
city. This figure shows that Carlsbad has
a greater concentration of patent activity than even the technology hubs of San
Jose, Seattle, San Francisco, and Boston. In
2019, Carlsbad had 1.6 patents for every
1 patent per 1,000 workers in San Jose.
That ratio was 2.5 and 2.8 for Seattle and San Francisco.
Released May 15, 2023
The quarterly economic scan is developed by the City of Carlsbad Innovation & Economic Development Department.
For more information, visit carlsbadca.gov/doingbusiness, or contact the team at business@carlsbadca.gov.
May 16, 2023 Item #8 Page 15 of 25
Growth in Patents Held by Carlsbad Businesses
350
209%
300
.... C 250 ::J 0 u .... 200 C ~ "' c.. 150
"' ::J C
C 100 <l'.
so
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-clean Technology -Information and Communications Technology
-Life Sciences -sports Innovation and Design
Portland -Denver -Baltimore -Pittsburgh
Austin
Boston
San Francisco
Seattle
San Jose
Carlsbad
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0
Exhibit 2
This report summarizes the City of Carlsbad’s General Fund revenues and expenditures through March 31,
2023. It compares revenues and expenditures for the first nine months of fiscal year 2022-23 and fiscal year
2021-22. In addition, the financial status of the Water and Wastewater Enterprises are included. This report
is for internal use only. The figures presented here are unaudited and have not been prepared in accordance
with Generally Accepted Accounting Principles.
General Fund Revenues
Property Taxes ($52.7 million) – The majority of property tax revenue is
collected in December and April each year. According to the County of San Diego
Assessor’s Office, assessed values in Carlsbad have increased by 8.13% for fiscal
year 2022-23. This is the tenth year in a row that Carlsbad’s assessed values have
increased from year to year, and in line with assessed value increases with other
cities in San Diego County for the year. This reflects continued strength in the
regional housing market. The increase in this year’s assessed values is due to a large increase in the assessed
values of residential properties in the city; the city saw smaller increases in commercial and industrial property
values for the year. This is the eighth year in a row since the Great Recession ended that the city saw increases
in assessed values in all three property components (residential, commercial and industrial).
The property taxes for the first nine months of the fiscal year have increased by 8% as compared to the prior
fiscal year. The primary reasons for the increase are:
•Current taxes are up by $2.7 million or 7.3% mainly due to increased assessed values.
•Supplemental and surplus property taxes are $549,000 higher when compared with the prior year.
•Aircraft taxes are also up $560,000 or 41% due to an increase in aircrafts being housed at the airport.
Sales Taxes ($42.3 million) – For the first nine months of the fiscal year, sales tax
revenues are $3.5 million higher than the same period in the previous fiscal year.
Sales tax revenues to date for the current fiscal year represent the city’s first
advance for the first calendar quarter of 2023, the city’s sales tax revenues for
the third and fourth calendar quarters of 2022, and a large portion of the city’s
second calendar quarter of 2022 sales tax revenues.
In the prior fiscal year, the city saw accelerated recovery from the impacts of the COVID-19 pandemic including
the shelter-in-place orders, which essentially shut down all non-essential businesses, and where small businesses
in the State of California were allowed to defer sales tax payments. FY 2021-22 experienced historically high
levels of sales tax revenues.
For sales occurring in the fourth calendar quarter of 2022 (the most recent data available), key year-over-year
gains were seen in new auto sales and light industry. During the same period, key declines were seen in apparel
stores. The largest economic segments in the city are automobile dealers, general retail stores, and restaurants.
Together, they generate 76% of the city’s sales tax revenues.
March 31, 2023
8%
9%
May 16, 2023 Item #8 Page 16 of 25
PRE.P,AREO BY THE Fl:NANCE 01 EPAR:TMENT
Financia l Status Report
FOR
SALE
{city of
Ca,rlsbad
Quarterly Financial Report _______________________________________________________________ 2
Transient Occupancy Tax ($26.5 million) – The city’s third highest General Fund
revenue source on an annual basis is Transient Occupancy Tax (TOT or hotel tax),
estimated at $28.8 million for the current fiscal year. A tax of 10% of the rent
amount is collected on all occupancies less than 30 days (transient) in duration.
Year-to-date TOT figures represent taxes collected on hotel receipts through the
month of February 2023. TOT collected for the nine months of the fiscal year
reflects an increase of $4.4 million, or 20%, more than the previous year.
Currently, there are 4,776 hotel rooms in service (of 5,067 total rooms built in the city and 343 registered short-
term vacation rentals. The average occupancy of hotel rooms over the most recent 12 months has been 70.8%
which is slightly higher than 65.0% at this time last year.
Business License Tax ($2.6 million) – All entities doing business in the City of
Carlsbad are required to have a valid business license. Business license revenue is
estimated at $6.2 million for the current fiscal year. Business license revenues are
down $192,500, or 4%, from the previous fiscal year. The decrease is due to a
reduction in payments received for overdue business license renewals and
penalties that were received last year and as a result of COVID-19.
There are currently 9,514 licensed businesses operating within the city, five less than the prior year. The majority
of taxed businesses (6,375 businesses) are located in Carlsbad, with 2,462 of these businesses home-based.
Interdepartmental Charges ($4.4 million) – Interdepartmental charges are up by
$453,000 when compared with the same period last year. These charges are
generated through engineering services charged to capital projects (up $281,000
due to more staff time charged to capital projects); reimbursed work from other
funds (up $15,700); and miscellaneous interdepartmental expenses charged to
funds outside the General Fund for services performed by departments within
the General Fund (up $156,000).
Income from Investments and Property ($4.7 million) – For the first nine
months of the fiscal year, income from investments and property is up $730,000
compared to the previous fiscal year. This increase is largely due to a 53.6% rise
in yield from 1.16% as of March 2022 to 2.03% as of March 2023.
Throughout the pandemic, the Federal Reserve had maintained an effective
benchmark rate between 0 and 0.25%. However, inflation has been on a historic
rise for much of the last year and resulted in the Federal Reserve increasing benchmark rates all the way to
4.75%-5% as of March 2023. While 2022 saw repeated and large interest rate hikes, 2023 is expected to see
hiking interest rates at a slower and more deliberate pace.
Recreation Fees ($2.2 million) – Recreation fees are generated through
instructional classes, camps, youth and adult sports, special events, parent
participation preschool, senior programs, and various aquatic programs.
Recreation revenues are up by $461,000 compared to last year at this time.
While programs began to reopen more in the summer of 2021, this increase can
also be attributed to recovery growth since the onset of the pandemic.
12%
20%
26%
19%
4%
May 16, 2023 Item #8 Page 17 of 25
Quarterly Financial Report _______________________________________________________________ 3
Development Related Revenues ($3.5 million) – Development related revenues,
which include building permits, planning fees, building department fees, and
engineering fees, reflect a 20% increase for the first nine months of the fiscal
year.
Development related fees are paid by developers to cover a portion of the cost
of reviewing and monitoring development activities, such as plan checks and
inspections. Engineering plan check fees are one of the first fees paid during the initial stages of development.
Activity during the third fiscal quarter of fiscal year 2022-23 included permits associated with the new residential
construction of 16 second dwelling units, 12 condominiums, 3 single family homes, 110 apartments (70 for
Aviara Apartments and 40 for Pacific Wind Apartments) and various homeowner improvements. Commercial
permit activity included permits associated with the Beach Village Life Hotel (40,000 sq. ft.) and a commercial
building at the Raceway development (27,000 sq. ft.) as well as permits related to various tenant improvements.
One source of development related revenue is building permits, which are up 43% compared to last fiscal year.
The year-to-date valuation of new construction in the current fiscal year is $194.1 million. This represents a
$61.5 million, or 46%, increase over the previous fiscal year.
Franchise Tax ($2.6 million) – Franchise taxes are generated from public utility
sources, such as San Diego Gas & Electric (SDG&E), trash collection franchises,
and cable franchises conducting business within city limits. Franchise tax
revenue is estimated to be at $6.9 million for the current fiscal year. Year-to-
date franchise taxes are $342,000 higher when compared to the same period
last year.
Cable television franchise revenues (Spectrum and AT&T) are up $7,200 representing a relatively nominal
amount of change for subscription services (premium video, equipment rental, on-demand, and programming
services). An increase in trash collection revenue of $304,000 resulted from the city’s most recent contract with
Republic Services, the city’s waste services provider.
SDG&E pays franchise taxes for the use of public land over which they transport gas and electric services. In
addition, SDG&E pays an “in-lieu” franchise tax based on the value of gas and electricity transported through
SDG&E lines but purchased from another source. The “in-lieu” tax was put in place to capture the franchise taxes
on gas and electricity that is transported using public lands, but which would not otherwise be included in the
calculations for franchise taxes. Approximately 46% of the city’s franchise taxes are anticipated to be received
from SDG&E in April 2023.
Ambulance Fees ($3.9 million) – The city bills any individual who is transported
in one of the city’s ambulances. Through March 2023, receipts from ambulance
fees are up $1.6 million, or 70%, compared to last fiscal year. The increase in
revenue for the first nine months of the fiscal year is mainly due to an increase
in the number of billable transports, 5,525 in the first nine months of fiscal year
2022-23 versus 4,529 at the same time in the prior fiscal year.
Other Revenue Sources ($1 million) – Other revenue sources have increased by
72,600 and include revenues received by the city to offset the costs of special
studies or projects for developers; reimbursements for damage done to city
streets, rights-of-way, and other city-owned property; donations;
reimbursement from the Gas Tax Fund for traffic signal maintenance; and
miscellaneous reimbursed expenses and refunds of prior year fees. The increase
to date is related to higher amounts received for developer funded studies in the current fiscal year when
compared to the prior fiscal year.
20%
70%
15%
8%
May 16, 2023 Item #8 Page 18 of 25
~·~
Quarterly Financial Report _______________________________________________________________ 4
Other Licenses and Permits ($724,000) – Other licenses and permits consist of
fire protection services, right-of-way, lagoon, grading, hazardous uses, and other
miscellaneous permit revenues. These permits usually increase/decrease along
with increases/decreases in development activity. Other licenses and permit
revenues can vary throughout the year. To date, the decrease of $91,000 is
primarily a result of decreased coastal development and right of way permits
when compared to the same period last year.
Fines and Forfeitures ($301,000) – Fines and forfeitures represent fees collected
for code violations, parking citations, overdue fines, and returned checks. The
city recognizes revenues when the citizen pays the fine or forfeiture, as opposed
to when the fine is imposed. The increase to date of $48,000 is mainly due to
increases in code violation assessments.
Intergovernmental Revenues ($875,000) – Intergovernmental revenues include
homeowners property tax exemption revenue and miscellaneous receipts
received from the state or federal governments, as well as local school districts.
Various miscellaneous receipts comprise the $875,000 received this year which
represents a decrease of 21% over the same period last year. This decrease is
mainly due to federal reimbursements received for COVID-19 related sick leave
that were received in the prior fiscal year that were not repeated in the current
fiscal year.
Transfer Taxes ($934,000) – When real property is sold, the County Assessor’s
Office charges a transfer tax. The transfer tax rate in San Diego County is $0.0011
multiplied by the selling price of the property. The city receives 50% of the
transfer tax charged for sales within the City of Carlsbad. Revenues have
decreased over the same period last year due to a decrease in property
transfers.
Other Charges or Fees ($994,000) – Other charges or fees are generated through
the sale of city documents, such as staff reports, blueprints and copies; general
fees collected for false alarms, easements and agreements, weed abatement
and kiosk signs; and general services, such as mutual aid response, mall police
services, emergency response services, reports, etc. These fees are down by
$272,000, or 21% mainly due to a decrease in fire mutual aid response
reimbursements when compared to the prior fiscal year.
A detailed schedule of General Fund revenues is provided on the following page.
11%
19%
37%
21%
21%
May 16, 2023 Item #8 Page 19 of 25
Quarterly Financial Report _______________________________________________________________ 5
REVENUE
REVENUE EXPECTED ACTUAL ACTUAL CHANGE FROM
BUDGETED THROUGH FY 2022 FY 2023 YTD 2022 TO PERCENT
FOR FY 2022-23 03/31/23 AS OF 03/31/22 AS OF 03/31/2023 YTD 2023 CHANGE
TAXES
PROPERTY TAX $81,508,000 $49,481,343 $48,575,209 $52,678,138 $4,102,929 8%
SALES TAX 49,123,000 37,278,001 38,835,524 42,346,454 3,510,930 9%
TRANSIENT OCCUPANCY TAX 28,803,000 19,653,769 22,110,079 26,462,680 4,352,601 20%
FRANCHISE TAX 6,958,000 2,491,844 2,281,602 2,623,485 341,883 15%
BUSINESS LICENSE TAX 6,242,000 4,633,539 4,913,611 4,721,106 (192,505)-4%
TRANSFER TAX 1,570,000 1,062,578 1,474,559 934,212 (540,347) -37%
TOTAL TAXES 174,204,000 114,601,074 118,190,584 129,766,075 11,575,491 10%
INTERGOVERNMENTAL
VEHICLE LICENSE FEES 50,000 50,000 133,433 118,477 (14,956) -11%
HOMEOWNERS EXEMPTIONS 353,000 176,500 169,133 168,461 (672) 0%
OTHER REIMBURSEMENT 752,809 82,134 809,413 587,742 (221,671) -27%
TOTAL INTERGOVERNMENTAL 1,155,809 308,634 1,111,979 874,680 (237,299) -21%
LICENSES AND PERMITS
BUILDING PERMITS 900,000 586,587 1,102,455 1,577,122 474,667 43%
OTHER LICENSES & PERMITS 963,000 745,224 815,730 724,367 (91,363) -11%
TOTAL LICENSES & PERMITS 1,863,000 1,331,811 1,918,185 2,301,489 383,304 20%
CHARGES FOR SERVICES
PLANNING FEES 456,000 311,693 476,136 395,491 (80,645) -17%
BUILDING DEPARTMENT FEES 895,317 626,907 604,745 750,031 145,286 24%
ENGINEERING FEES 608,900 471,302 723,953 757,505 33,552 5%
AMBULANCE FEES 3,850,000 2,596,243 2,309,838 3,917,891 1,608,053 70%
RECREATION FEES 2,315,500 1,520,842 1,774,109 2,235,009 460,900 26%
OTHER CHARGES OR FEES 1,504,300 1,114,380 1,266,043 993,975 (272,068) -21%
TOTAL CHARGES FOR SERVICES 9,630,017 6,641,368 7,154,824 9,049,902 1,895,078 26%
FINES AND FORFEITURES 210,750 155,453 252,963 301,440 48,477 19%
INCOME FROM INVESTMENTS & PROPERTY 5,481,000 3,851,180 3,923,400 4,655,445 732,045 19%
INTERDEPARTMENTAL CHARGES 5,236,449 3,858,705 3,916,308 4,368,935 452,627 12%
OTHER REVENUE SOURCES 1,275,564 1,021,693 946,981 1,019,582 72,601 8%
TRANSFERS IN 10,000 10,000 10,000 0 (10,000) -100%
TOTAL GENERAL FUND $199,066,589 $131,779,919 137,425,224 $152,337,548 $14,912,324 10.9%
(1)
(1) Calculated General Fund revenues are 16% above estimates as of March 31, 2023.
GENERAL FUNDREVENUE COMPARISON
May 16, 2023 Item #8 Page 20 of 25
Quarterly Financial Report _______________________________________________________________ 6
Expenditures
Total General Fund expenditures and encumbrances through the month of March 2023 are $165.3 million,
compared to $163.2 million at the same time last year. While the year-over-year change is $2.1 million or 1.3%,
there are varying factors in how each of the respective years’ expenditure totals are derived. During the first
quarter of fiscal year 2021-22, City Council authorized a $10.7 million transfer related to the Technology
Investment Program in support of the Strategic Digital Transformation Investment Program, a $7.8 million
transfer to the General Capital Construction Fund from fiscal year 2020-21 General Fund surplus, and a $5.5
million additional discretionary payment to CalPERS. During the first quarter of fiscal year 2022-23, City Council
authorized a $10.2 million transfer to the city’s Workers’ Compensation Internal Service Fund, a $1 million
transfer to the city’s Risk Management Internal Service Fund, and a $1.4 million to the city’s Fleet Maintenance
Internal Service Fund. While surplus authorizations in accordance with City Council Policy Statement No. 87 were
higher in fiscal year 2021-22 and resulted in additional expenditures through the first two quarters, the fiscal
year 2022-23 adopted budget was $13.8 million or 7.5% greater than the previous year which contributed to
comparable expenditure totals in both years.
The remaining budget available through the fiscal year ending June 30, 2023, is $62.9 million, or 27.6%. If funds
were spent in the same proportion as the previous year, the General Fund would have 26.7% or $59.4 million
available. Excluding transfers out, contingencies, and non-departmental charges, the percentage available on
March 31, 2023, is 28.3%, slightly less than the 28.4% available on March 31, 2022.
The adopted General Fund budget for fiscal year 2022-23 increased by 7.5% or $13.8 million when compared to
last fiscal year due to:
• Increased personnel costs (increase of $9.8 million):
o $5.5 million in salaries and wages due to the addition of 24 new full-time positions and 3.4 full-time
equivalent part-time positions.
o $3.5 million in health insurance and retirement benefits costs
o $0.8 million increase in other personnel costs (Medicare, unemployment and disability benefits)
o ($2.0) million in vacancy savings. The fiscal year 2022-23 budget introduced a mechanism for accounting
for vacancy savings at the beginning of the budget cycle rather than at the end. This mechanism (1)
reduces the amount of budget in the General Fund, (2) closer alignment between budgeted and actual
personnel costs, (3) increased alignment with the city’s 10-year forecast
• Decreased maintenance and operations costs (decrease of $1.1 million):
o Under the direction of the City Manager, departments were instructed to identify budgetary savings for
fiscal year 2022-23 which resulted in a $1.5 million reduction in base operating costs.
• $6.5 million increase in transfers. This increase was a result of a temporary reduction in capital project
transfers in fiscal year 2021-22 as a result of COVID-19 and its anticipated adverse fiscal impacts.
CalPERS and pension funding has been and will continue to be a challenge for participating agencies. CalPERS
administers the city’s defined benefit pension plan and costs have been increasing in past years as CalPERS
addresses a structural shortfall in plan assets to cover unfunded liabilities. In support of CalPERS strategies for
plan sustainability and as part of the city’s strategic, long-term approach to financial management, the city
actively manages its unfunded pension liability. Since fiscal year 2016-17, the City Council has approved
additional discretionary payments of $56.4 million to decrease future costs of the city’s unfunded actuarial
liability and strive to achieve a funded status of 80% in accordance with City Council Policy Statement No. 86.
CalPERS latest actuarial valuation report (as of June 30, 2021), the city had a combined pension funded status of
86% which was predominantly driven by CalPERS’ fiscal year 2020-21 investment return of 21.3%. This positive
return will not impact the city’s required contributions until fiscal year 2023-24. CalPERS recently announced
preliminary net investment return of -6.1% for fiscal year 2021-22 which will significantly reduce the city’s total
funded status and have a tremendous impact on the city’s future costs. This negative return will not impact the
May 16, 2023 Item #8 Page 21 of 25
Quarterly Financial Report _______________________________________________________________ 7
city’s required contributions until fiscal year 2024-25. Staff will continue to monitor CalPERS’ strategies and
performance and report to City Council as necessary and appropriate.
The city will continue monitoring spending and intends to return to the City Council in early 2023 with a
midyear review of the General Fund’s budget. Staff plans to propose adjustments to current year revenue
forecasts and may propose expenditure adjustments in line with the city’s evolving economic situation.
A detailed schedule of General Fund expenditures is provided below.
ADOPTED WORKING
BUDGET BUDGET AMOUNT AVAILABLE %
DEPARTMENT DESCRIPTION FY 2022-23 FY 2022-23 (a)COMMITTED (b)BALANCE AVAILABLE (c)
POLICY AND LEADERSHIP GROUP
CITY ATTORNEY $2,033,508 $2,103,944 $1,416,806 $687,138 32.7%
CITY CLERK SERVICES 1,394,162 1,450,310 852,767 597,543 41.2%
CITY COUNCIL 652,220 653,264 431,652 221,612 33.9%
CITY MANAGER 2,156,145 2,332,291 1,627,842 704,449 30.2%CITY TREASURER 249,945 214,664 93,212 121,452 56.6%
COMMUNICATIONS & ENGAGEMENT 1,979,186 2,601,885 2,028,208 573,677 22.0%
TOTAL POLICY AND LEADERSHIP GROUP 8,465,166 9,356,358 6,450,487 2,905,871 31.1%
ADMINISTRATIVE SERVICES
ADMINISTRATION 747,797 756,348 536,790 219,558 29.0%
FINANCE 5,472,176 6,035,401 4,204,987 1,830,414 30.3%
HUMAN RESOURCES 5,264,775 5,329,529 3,638,663 1,690,866 31.7%
INNOVATION & ECONOMIC DEVELOPMENT 2,585,951 2,653,533 1,732,603 920,930 34.7%
TOTAL ADMINISTRATIVE SERVICES 14,070,699 14,774,811 10,113,043 4,661,768 31.6%
PUBLIC SAFETY
POLICE 51,240,884 56,662,946 41,290,823 15,372,123 27.1%
FIRE 37,756,943 39,502,653 27,426,349 12,076,304 30.6%
TOTAL PUBLIC SAFETY 88,997,827 96,165,599 68,717,172 27,448,427 28.5%
COMMUNITY SERVICES
COMMUNITY SERVICES ADMINISTRATION 675,917 842,700 641,077 201,623 23.9%
COMMUNITY DEVELOPMENT 10,384,700 12,754,845 8,992,864 3,761,981 29.5%
HOUSING & HOMELESS SERVICES 3,134,115 3,838,192 2,936,682 901,510 23.5%
LIBRARY & CULTURAL ARTS 14,088,425 14,422,200 9,873,525 4,548,675 31.5%
PARKS & RECREATION 21,167,014 22,026,639 16,417,954 5,608,685 25.5%
TOTAL COMMUNITY SERVICES 49,450,171 53,884,576 38,862,102 15,022,474 27.9%
PUBLIC WORKS
PUBLIC WORKS ADMINISTRATION 1,440,649 1,508,318 1,043,202 465,116 30.8%
CONSTRUCTION MANAGEMENT & INSPECTIONS 3,262,768 3,511,909 2,358,527 1,153,382 32.8%
ENVIRONMENTAL SUSTAINABILITY 1,159,789 1,639,413 1,175,334 464,079 28.3%
FACILITIES 6,768,736 8,366,112 6,356,886 2,009,226 24.0%
TRANSPORTATION 9,707,559 11,259,626 8,657,802 2,601,824 23.1%
TOTAL PUBLIC WORKS 22,339,501 26,285,378 19,591,751 6,693,627 25.5%
NON-DEPARTMENTAL & CONTINGENCY
(d)OTHER NON-DEPARTMENTAL 1,021,658 3,019,456 759,871 2,259,585 74.8%
OPERATING TRANSFERS OUT 13,600,000 24,208,252 20,808,267 3,399,985 14.0%
CONTINGENCY 500,000 492,224 0 492,224 100.0%
TOTAL NON-DEPT & CONTINGENCY 15,121,658 27,719,932 21,568,138 6,151,794 22.2%
TOTAL GENERAL FUND $198,445,022 $228,186,654 $165,302,693 $62,883,961 27.6%
(a) Working budget includes the adopted budget, open encumbrances from the end of the prior fiscal year,
approved carry forwards of the prior fiscal year and all other council approvals.
(b) Actual expenditures on a budgetary basis include encumbrances and exclude non-budgeted items.
(c) Amount available would be 26.7% if funds were spent in the same proportion as the previous year.
(d) Other non-departmental includes property tax administration fees, assessment district administration, citywide litigation expenses,
and other items not attributed to a specific department.
AS OF 03/31/2023
EXPENDITURE STATUS BY DEPARTMENTGENERAL FUND
May 16, 2023 Item #8 Page 22 of 25
Quarterly Financial Report _______________________________________________________________ 8
Council Contingency
The City Council has allocated $500,000 out of the General Fund budget for unanticipated emergencies or
unforeseen program needs. Below is a listing of the City Council’s contingency:
Donations
Carlsbad Municipal Code 2.08.100 authorizes the city manager to accept donations on behalf of the city in an
amount or of value of up to $5,000 per donation. These donations shall be used in accordance with the donor’s
intent or added to the city’s contingency account. Below is a listing of all donations, that have been accepted
during fiscal year 2022-23:
CONTINGENCY ACCOUNT
USE OF FUNDS
RESOLUTION
EXPLANATION AMOUNT DATE NUMBER
ADOPTED BUDGET $500,000
USES:
Community Spirit Grant - Carlsbad Educational Foundation-Razorback Invitational (1,915) 8/8/2022 NA - See Note 1
Community Spirit Grant - Carlsbad Chamber of Commerce - Older & Bolder Expo (5,000) 8/8/2022 NA - See Note 1
Community Spirit Grant - Carlsbad High School - Lancer Day Parade (861) 10/27/2022 NA - See Note 1
TOTAL USES (7,776)
AVAILABLE BALANCE $492,224
Note 1 - City Council Policy 51 gives authorization to the City Manager, or designee,
to approve Winning Teams and Community Spirit Grants up to $5,000 per grant.
Department Intention Qtr. 1 Qtr. 2 Jan.Feb Mar Qtr. 3 Total
Parks & Recreation Leo Carrillo Ranch Cash Donations $6,166 $1,329 $263 $357 $5,474 $6,094 $13,589
Parks & Recreation Opportunity Grant Donations 3,253 2,207 473 1,200 1,796 3,469 8,929
Parks & Recreation Senior Center Cash Donations 1,894 1,962 1,145 707 223 2,075 5,931
Parks & Recreation Senior Meals Cash Donations 3,392 4,380 1,682 2,138 1,711 5,531 13,303
Parks & Recreation Senior Transportation Cash Donations 375 353 160 184 177 521 1,249
Parks & Recreation Special Events Cash Donations 1,000 0 0 2 0 2 1,002
Parks & Recreation Teen Programs 0 0 0 2,266 0 2,266 2,266
Parks & Recreation Tree San Diego planting event (Stagecoach)0 4,900 0 0 0 0 4,900
Subtotal - Parks & Recreation $16,080 $15,131 $3,723 $6,854 $9,381 $19,958 $51,169
Library & Cultural Arts Book Purchases $5,150 $150 $0 $0 $0 $0 $5,300
Library & Cultural Arts Genealogy Program 0 3,039 3,035 0 0 3,035 6,074
Library & Cultural Arts Films in Schulman Auditorium 0 1,050 0 0 0 0 1,050
Library & Cultural Arts Support Library Programs and Services 148 2,007 1,000 1 0 1,001 3,156
Subtotal - Library & Cultural Arts $5,298 $6,246 $4,035 $1 $0 $4,036 $15,580
Fire Food gifts for crews $0 $417 $0 $50 $0 $50 $467
Subtotal - Fire $0 $417 $0 $50 $0 $50 $467
Total Donations $21,378 $21,794 $7,758 $6,905 $9,381 $24,044 $67,216
Donations Fiscal Year 2022 - 23
May 16, 2023 Item #8 Page 23 of 25
Quarterly Financial Report _______________________________________________________________ 9
Water Enterprise
Revenues
• Decrease in water operating revenues due to 4.62% decrease in water volume sales, offset by
increase in user rates in January 2023.
• Interest earnings increased due to a 53.6% increase in the yield of the Treasurer’s portfolio
combined with an 8.5% increase in the monthly average cash balance.
• The increase in property taxes is primarily due to increase in assesed property values.
• The increase in fines is due to reinstatement of customer late charges starting in January 2022.
• Decrease in other revenues was due to a prior year receipt of $1.4 million for the Carlsbad
Municipal Water District’s share of damages awarded for rates that were unlawfully assessed
to the city between 2011 and 2014, and a transfer in of $1.1 million from other city funds due
to a consolidation of the city’s CalPERS post retirement benefit plans.
Expenses
• The increase in staffing expenses includes salary increases and vacancies experienced in prior
fiscal year offset by an annual required contribution to the city’s unfunded pension liability
balance with CalPERS.
• Higher interdepartmental expenses resulted from increased personnel related costs, and
general liability insurance.
• Purchased water expenses have decreased from the prior year due to a 7.7% rate increase in
the variable cost of water purchased from the San Diego County Water Authority (SDCWA)
offset by a 7.9% decrease in the amount of water purchased.
• Miscellaneous expenses increased from timing of purchase of replacement meters.
• Captial outlay increased due to additional fleet vehicle purchase.
CHANGE FROM
BUDGET YTD (*) YTD (*)YTD 2021-22 TO PERCENT
FY 2022-23 3/31/2022 3/31/2023 YTD 2022-23 CHANGE
REVENUES:
WATER DELIVERY 41,300,000$ 30,322,078$ 29,881,589$ (440,489)$ -1.5%
INTEREST 354,500 259,028 393,020 133,992 51.7%
MISC. SERVICE CHARGES 321,000 210,981 212,396 1,415 0.7%
PROPERTY TAXES 4,441,344 2,916,091 3,138,013 221,922 7.6%
FINES, FORFEITURES & PENALTIES 161,750 93,895 283,142 189,247 201.6%
OTHER REVENUES 411,544 2,680,209 383,125 (2,297,084) -85.7%
TOTAL OPERATING REVENUE 46,990,138 36,482,282 34,291,285 (2,190,997) -6.0%
EXPENSES:
STAFFING 4,301,517 2,987,396 3,138,681 151,285 5.1%
INTERDEPARTMENTAL SERVICES 3,161,356 2,207,606 2,371,338 163,732 7.4%
PURCHASED WATER 27,300,000 18,754,280 18,674,264 (80,016) -0.4%
MWD/CWA FIXED CHARGES 6,885,000 5,042,759 5,098,290 55,531 1.1%
OUTSIDE SERVICES/MAINTENANCE 2,411,554 625,643 619,764 (5,879) -0.9%
DEPRECIATION/REPLACEMENT 5,000,000 3,375,000 3,749,999 374,999 11.1%
MISCELLANEOUS EXPENSES 1,106,939 493,862 641,638 147,776 29.9%
CAPITAL OUTLAY 77,088 16,958 32,776 15,818 93.3%
TOTAL OPERATING EXPENSES 50,243,454 33,503,504 34,326,751 823,246 2.5%
OPERATING INCOME/(LOSS)(3,253,316)$ 2,978,778$ (35,466)$ (3,014,243)$ -101.2%
(*) Adjusted to reflect timing differences for water purchases and depreciation.
WATER OPERATIONS FUND
March 31, 2023
2.5%
6.0%
May 16, 2023 Item #8 Page 24 of 25
Quarterly Financial Report _______________________________________________________________ 10
Wastewater Enterprise
Revenues
• Charges for current services are higher than in the prior year due primarily to a 20% rate increase
that went into effect January 2023.
• Interest earnings increased due to a 53.6% increase in the yield of the Treasurer’s portfolio
combined with a 7.8% increase in the monthly average cash balance.
• The increase in other revenues is due to customer late charges resuming after the COVID-19
pandemic in January 2022 and reimbursement for interdepartmental labor charges.
Expenses
• The increase in staffing expenses is driven by salary increases offset by annual required
contribution to the city’s unfunded pension liability balance with CalPERS.
• Higher interdepartmental expenses resulted from increased personnel related costs, and
general liability insurance.
• Higher miscellaneous expenses from purchase of parts.
• The capital outlay in fiscal year 2021-22 was for the procurement of a utility truck.
CHANGE FROM
BUDGET YTD* YTD*YTD 2021-22 TO PERCENT
FY 2022-23 3/31/2022 3/31/2023 YTD 2022-23 CHANGE
REVENUES:
CHARGES FOR CURRENT SERVICES 19,000,000 11,330,025 13,953,238 2,623,213 23.2%
INTEREST 95,000 74,094 107,439 33,345 45.0%
OTHER REVENUES 181,500 106,914 280,600 173,686 162.5%
TOTAL OPERATING REVENUE 19,276,500 11,511,033 14,341,277 2,830,244 24.6%
EXPENSES:
STAFFING 2,971,244 1,926,466 1,997,038 70,572 3.7%
INTERDEPARTMENTAL SERVICES 1,519,845 1,007,995 1,133,334 125,339 12.4%
ENCINA PLANT SERVICES 4,665,000 5,427,201 4,423,161 (1,004,040) -18.5%
OUTSIDE SERVICES/MAINTENANCE 1,825,185 256,096 291,529 35,433 13.8%
DEPRECIATION/REPLACEMENT 5,300,000 3,975,000 3,974,999 (1)0.0%
MISCELLANEOUS EXPENSES 1,158,133 427,250 507,183 79,933 18.7%
CAPITAL OUTLAY 9,750 46,811 0 (46,811) -100.0%
TOTAL OPERATING EXPENSES 17,449,157 13,066,819 12,327,244 (739,575) -5.7%
OPERATING INCOME/LOSS 1,827,343 (1,555,786) 2,014,033 3,569,819 -229.5%
(*) Adjusted to reflect timing differences for Encina quarterly invoices and depreciation.
WASTEWATER OPERATIONS FUND
March 31, 2023
24.6%
5.7%
May 16, 2023 Item #8 Page 25 of 25
Matt Sanford, Economic Development Manager
Zach Korach, Finance Director
May 16, 2023
Economic and Financial
Update: Q3 FY 2022-23
{city of
Carlsbad
TODAY’S PRESENTATION
•Economic update
•Financial update
ECONOMIC AND FINANCIAL UPDATE
{city of
Carlsbad
ECONOMIC UPDATE
3
•Timeframe analyzed
o Third quarter FY2022-2023 (January –March 2023)
•Macro Trends
•Local Impact
ECONOMIC AND FINANCIAL UPDATE
{city of
Carlsbad
EVOLVING ECONOMIC CONDITIONS
•Macro-disruptions continue to affect Carlsbad businesses
o Inflation
o Higher cost of capital
o Tight labor market
ECONOMIC AND FINANCIAL UPDATE
{city of
Carlsbad
INFLATION CONCERNS
•Cost increases continue to drive
concern for businesses and
consumers
•San Diego area prices are up 1%
over the past two months
•Over-the-year prices are up 5.3%
ECONOMIC AND FINANCIAL UPDATE
Chart 1. Over-the-year percent change in CPI-U, San Diego-Carlsbad, CA, March
2020-March 2023
Percent change
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
-Alllems
All lems less food and energy
Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar
2020 2021 2022 2023
Source: U.S. Bureau of Labor Statistics.
{city of
Carlsbad
6
ECONOMIC AND FINANCIAL UPDATE
Real GDP. Percent change, fr,om preceding ,qiua1rte,r
8
6
4
2
0
-2
Q2 Q3
2021
11..J • .Sm B u r-eau of Eoon orn ic A n alysis
Q4 Q1 Q2
2022
Q3
.Seasc:rn1ally adj us1t,ed annual irates
CARLSBAD ECONOMY
•Carlsbad GRP for 2022 was $15.8 Billion
•Economy grew by more than $1 Billion compared to 2021
•Manufacturing, Wholesale Trade, Accommodation &
Food Service, and Professional Scientific & Technical
Services saw largest increases
ECONOMIC AND FINANCIAL UPDATE
{city of
Carlsbad
CARLSBAD ECONOMY
ECONOMIC AND FINANCIAL UPDATE
Top Five Industry Expansions -2021
Top Five Industries Contractions -2021
Machinery Manufacturing $170,356,513 $166,897,336 -$3,459,177
Electrical Equipment, Appliance, & Component Mfg.$41,709,816 $39,306,251 -$2,403,565
Broadcasting (except Internet)$30,930,544 $28,703,260 -$2,227,284
Telecommunications $67,502,217 $66,522,186 -$980,030
Pipeline Transportation $8,267,344 $7,567,474 -$699,870
Management of Companies and Enterprises $1,387,807,048 $1,562,456,261 $174,649,212
Professional, Scientific, and Technical Services $1,863,945,969 $2,020,184,103 $156,238,134
Chemical Manufacturing $643,685,714 $798,069,390 $154,383,676
Merchant Wholesalers, Nondurable Goods $529,860,193 $628,281,781 $98,421,588
Administrative and Support Services $309,018,816 $374,945,699 $65,926,883
Industry 2020 Earnings 2021 Earnings Change
Industry 2020 Earnings 2021 Earnings Change
WORKER/TALENT SHORTAGE
•EDD March unemployment data
o California unemployment rate:
4.8%, (.7% increase)
o County unemployment rate:
3.7%, (.8% increase)
o Carlsbad unemployment rate:
3.5%, (.9% increase)
ECONOMIC AND FINANCIAL UPDATE
0
1
2
3
4
5
6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Unemployment Rate Comparison 2022
Carlsbad San Diego County
North County Avg w/o Carlsbad California
{city of
Carlsbad
CARLSBAD JOBS
•January through March saw 12,258 unique job postings
•Third consecutive quarterly decrease in job postings
•Average salary for posted jobs was $51,100, an increase of
$5,000 over last quarter
ECONOMIC AND FINANCIAL UPDATE
CARLSBAD TOURISM
•Group and conference travel recovering but still uncertain
•“Revenge travel” that fueled 2022 recovery could slow
ECONOMIC AND FINANCIAL UPDATE
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avgerage Daily Rate 2023
City of Carlsbad San Diego County, CA
City of Oceanside, CA City of Newport Beach, CA
0
20
40
60
80
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Hotel Occupancy 2023
City of Carlsbad San Diego County, CA
City of Oceanside, CA City of Newport Beach, CA
---
,< -------
COMMERCIAL REAL ESTATE
•Vacancy rate for industrial properties is 3.6%
•Vacancy rate for office properties is 12.6%
•Vacancy rate for retail properties is 5.8%
ECONOMIC AND FINANCIAL UPDATE
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
2020
Q1
2020
Q2
2020
Q3
2020
Q4
2021
Q1
2021
Q2
2021
Q3
2021
Q4
2022
Q1
2022
Q2
2022
Q3
2022
Q4
2023
Q1
Carlsbad Commercial Vacancy Rates
Carlsbad Retail Carlsbad Office Carlsbad Industrial
RESIDENTIAL REAL ESTATE
•Median home values ended the quarter at $1.34 million
•The demand for housing remains strong and supply remains
constrained.
ECONOMIC AND FINANCIAL UPDATE
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
$1,600,000
2019 2020 2021 2022 2023
Carlsbad Median Home Price
Jan 2019 - Present
NEW DEVELOPMENT
& BUSINESS ACTIVITY
•Business licenses issued was strongest in two years
•Home builder optimism is rising, but costs are a challenge
•Commercial development continues to slow
ECONOMIC AND FINANCIAL UPDATE
0
500
1000
1500
2000
2500
3000
3500
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Business Licenses Issued by Quarter
Non-Residential Residential Outside City Total
0
200
400
600
800
1000
1200
1400
1600
Co
m
m
e
r
c
i
a
l
Re
s
i
d
e
n
t
i
a
l
Co
m
m
e
r
c
i
a
l
Re
s
i
d
e
n
t
i
a
l
Co
m
m
e
r
c
i
a
l
Re
s
i
d
e
n
t
i
a
l
Co
m
m
e
r
c
i
a
l
Re
s
i
d
e
n
t
i
a
l
2020 2021 2022 2023
Building Permits Issued
Q1 Q2 Q3 Q4
•
----
■ ■ ■ ■
KEY TAKEAWAYS
•We are likely to see a softening in the economy
•Prices may be stabilizing but inflation is still a concern
•The unemployment rate will likely increase slightly as
the economy moderates
•The job-to-labor ratio remains extremely tight, causing
wages to rise
•The slowing in commercial real estate development is
likely to continue
ECONOMIC AND FINANCIAL UPDATE
GENERAL FUND REVENUES
(first through third quarter of fiscal year)
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
Property tax Sales tax Transient
occupancy tax
■ FY 2021-22
■ FY 2022-23 Expected
■ FY 2022-23 Actual
I l l ■■■ •-■
Other taxes Income from inv. Development Other revenues
and prop. related revenue
GENERAL FUND REVENUES
Revenue category
Actual
FY 2021-22
Actual
FY 2022-23
$
difference
%
difference
Property tax $48.6 $52.7 $4.1 8%
Sales tax 38.8 42.3 3.5 9%
Transient occupancy tax 22.1 26.5 4.4 20%
Other taxes 8.7 8.3 -0.4 -5%
Income from inv. and property 3.9 4.6 0.7 19%
Development related revenue 2.9 3.5 0.6 20%
Other revenues 12.4 14.4 2.0 16%
Total $137.4 $152.3 $14.9 11%
(in millions, first through third quarter of fiscal year)
[----====----]
Revenue category
Expected
FY 2022-23
Actual
FY 2022-23
$
difference
%
difference
Property tax $49.5 $52.7 $3.2 6%
Sales tax 37.2 42.3 5.1 14%
Transient occupancy tax 19.7 26.5 6.8 35%
Other taxes 8.2 8.3 0.1 1%
Income from inv. and property 3.9 4.6 0.7 21%
Development related revenue 2.0 3.5 1.5 74%
Other revenues 11.3 14.4 3.1 27%
Total $131.8 $152.3 $20.5 16%
GENERAL FUND REVENUES
(in millions, first through third quarter of fiscal year)
GENERAL FUND BUDGET
ECONOMIC AND FINANCIAL UPDATE
•Adopted budget of $198.4 million
•Working budget of $228.2 million
•Available budget remaining of $62.9 million, or 27%
•Includes actual expenditures through March 31
•Includes open purchase order commitments
{city of
Carlsbad
GENERAL FUND EXPENDITURES & ENCUMBRANCES
20
(first through third quarter of fiscal year)
$140,000,000
■ FY 2022-23 Budget
$120,000,000 ■ Q3 FY 2021-22 Actual
■ Q3 FY 2022-23 Actual
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
Personnel Maintenance & operations Transfers out Other
GENERAL FUND EXPENDITURES & ENCUMBRANCES
(in millions, first through third quarter of fiscal year)
Category
Budget
FY 2022-23
QTR 3 EXP
FY 2021-22
QTR 3 EXP
FY 2022-23
% of Budget
Spent to Date
Personnel $124.3 $85.7 $87.9 71%
Maintenance & operations 72.1 51.0 51.9 72%
Transfers out 24.2 25.0 20.8 86%
Capital outlay 7.1 1.5 4.7 65%
Contingency 0.5 0.0 0.0 0%
Total $228.2 $163.2 $165.3 72%
GENERAL FUND EXPENDITURES
(in millions, first through third quarter of fiscal year)
Category
Budget
FY 2022-23
QTR 3 EXP
FY 2022-23
% of Budget
Spent to Date
OPEN POs
at 03/31/23
Personnel $124.3 $87.9 71%$0.0
Maintenance & operations 72.1 40.2 56%11.7
Transfers out 24.2 20.8 86%0.0
Capital outlay 7.1 1.3 18%3.4
Contingency 0.5 0.0 0%0.0
Total $228.2 $150.2 66%$15.1
WATER AND WASTEWATER
ECONOMIC AND FINANCIAL UPDATE
Compared to prior year through third quarter:
•Water operating revenues are down 6% and
expenses are up 2.5%
•Wastewater operating revenues are up 24.6%
and expenses are down 5.7%
{city of
Carlsbad
GOLF COURSE
ECONOMIC AND FINANCIAL UPDATE
•Net income $241,000 higher than last year
•Driven by increases in private events and
food & beverage sales, offset by a slight
decrease in golf revenues (more rainy days
this year)
{city of
Carlsbad
NEXT STEPS
•Monitor revenues and expenditures
•Publish economic and financial status reports:
carlsbadca.gov/doingbusiness
carlsbadca.gov/departments/finance/financial-reports
•Return May 23, 2023 for FY 2023-24 Preliminary Budget
•Return in September 2023 for FY 2023-24 Year-end and
Carryforward Report
ECONOMIC AND FINANCIAL UPDATE
{city of
Carlsbad