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HomeMy WebLinkAbout; ; 1981-1982 CAFR; 1982-06-30CITY OF CARLSBAD COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 3O, 1982 (WITH ACCOUNTANTS REPORT THEREON) .... :.;-..-;;I,V:/'.'•;>:-.y**^^l;:;> , CONRAD CERTIFIED PUBLIC ACCOUNTANTS ^ASSOCIATES FOURTEEN CORPORATE PLAZA DRIVE NEWPORT BEACH, CALIFORNIA 92660 714/759-0511 The Board of Directors Carlsbad Redevelopment Agency: Carlsbad, California We have examined the financial statements of the redevelopment project fund and long-term debt account group of the Carlsbad Redevelopment Agency for the year ended June 30, 1982. Our examination was made in accordance with generally accepted auditing standards, and accordingly includes such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the redevelopment project fund and long-term debt account group of the Carlsbad Redevelopment Agency at June 30, 1982, and the results of operations of such fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. I4 September 27, 1982 CARLSBAD REDEVELOPMENT AGENCY Notes to Financial Statements June 30, 1982 Summary of Significant Accounting Policies The different funds and account groups in which financial data pertaining to the Carlsbad Redevelopment Agency (hereafter the "Agency") are recorded as follows: Redevelopment Projects Fund This fund accounts for all revenues and costs of implementing Redevelopment Project Area Number 1 in accordance with the California Community Redevelopment law, including acquisition of properties, cost of site improvements, and other costs of benefit to the project area and administrative expenses incurred in sustaining agency activities. Debt Service Fund This fund was established to finance and account for the payment of interest and principal on the Agency's long term advances from the City and any other long term debt. The principal sources of revenue of this fund are tax increment (80%) and investment income. Low and Moderate Income Housing Special Revenue Fund This fund is utilized to account for tax increment (20%) revenue restricted as to use for expenditures in connection with low and moderate income housing. Long-Term Debt Group of Accounts This group of accounts is used to account for, in a separate self-balancing group of accounts, the Agency's outstanding indebtedness. Memorandum Only Totals Columns in the accompanying financial statements captioned "Total (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. CARLSBAD REDEVELOPMENT AGENCY Notes to Financial Statements (Continued) Basis of Accounting The modified basis of -accounting is utilized by all fund types. The modified accrual basis of accounting, under which expenditures, other than interest on long term debt, are recorded when the liability is incurred and revenues are recorded when received in cash unless susceptible to accrual, i.e., measurable and available to finance the Agency. (2) Creation of the Redevelopment Agency The Carlsbad Redevelopment Agency was activated in July 1976 with the adoption of Ordinance No. 1191 by the Carlsbad City Council pursuant to the California Community Redevelopment law, now codified as Part 1, Division 24, of the State of California Health and Safety Code. The Agency has the broad authority to acquire, rehabilitate, develop, administer and sell or lease property. The principal objectives are to eliminate blightened in- fluences within the "Village Area" of the City of Carlsbad, stimulate and attract private investment, generate added employment through increased specialty goods and services and expand the City's sales tax revenue. (3) Advances from the City of Carlsbad Since activation of the Redevelopment Agency in July 1976 the City has advanced the Agency monies for appproved administra- tion expenditures. At June 30, 1982, the aggregate amount of City advances are £235,050. Such amounts will bear interest at 10% commencing July 1, 1982. CONRAD CERTIFIED PUBLIC ACCOUNTANTS FOURTEEN CORPORATE PLAZA L NEWPORT BEACH, ACCOUNTANTS' REPORT ON COMPLIANCE WITH AUDIT GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES Board of Directors Carlsbad Redevelopment Agency In connection with our examination of the financial statements, we have performed, to the extent applicable, the tasks contained in Section 1 through 4 of the "Guidelines for Compliance Audits of California Redevelopment Agencies" published by the State Controller. Based on the above procedures, we are of the opinion that the Agency complied in all material respects with criteria established in the State Controller's guidelines referred to above except as follows: The Agency had not submitted to the State of California an annual report containing an independent financial audit report, a work program for the coming year including goals, an examination of the previous year's achievements with a comparison to that year's established goals, and recommendation for needed legislation. The Carlsbad Village Area Redevelopment Plan was not adopted until November, 1981, and it is our understanding that the required annual report will be submitted shortly after October, 1982, the end of the 12 month reporting period. The Agency had not prepared a plan for relocation of non-profit local community institutions to be temporarily or permanently displaced from facilities in the project area. f xfekH^0- September 27, 1982 CARLSBAD KEDEVELOP1-ENT AGENCY Combined Balance Sheet June 30, 1982 Assets Amount to be provided for retirement of advances to City of Carlsbad Liabilities and Fund Equity Advances payable to the City of Carlsbad (note 3) Redevelopment Projects Fund long-Term Etebt $235,050 £235,050 $235,050 $235,050 Total (Memorandum Only) 235,050 $235,050 235,050 $235,050 See accompanying notes to financial statements CARLSBAD REDEVELOPMENT AGENCY Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 1982 Revenues: Proceeds from advance from City of Carlsbad Expenditures: Administration: Salaries and wages Professional services Other Total expenditures Excess of Revenues over Expenditures: Fund balance 7-1-81 Fund balance 6-30-82 Redevelopment Projects Fund $53,123 24,131 10,751 18,241 53,123 See accompanying notes to financial statements CITY OF CARLSBAD Carlsbad, California Comprehensive Annual Financial Report June 30, 1982 (with accountants' report thereon) CITY OF CARLSBAD Comprehensive Annual Financial Report Year Ended June 30, 1982 TABLE OF CONTENTS Page INTRODUCTORY SECTION: Table of Contents i Letter of Transmittal 1 Certificate of Conformance 6 List of City Officials 7 Organization Chart 8 FINANCIAL SECTION: Accountant's Report 12 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet - All Fund Types and Account Groups 13 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types 15 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - All Governmental Fund Types 17 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types 19 Combined Statement of Changes in Financial Position - All Proprietary Fund Types 20 Notes to Combined Financial Statements 21 CITY OF CARLSBAD TABLE OF CONTENTS, Continued Page Supplemental Data: Governmental Funds: General Fund: Schedule of Revenues 37 Schedule of Expenditures 38 Special Revenue Funds: Combining Balance Sheet 39 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 41 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 43 Debt Service Funds: Combining Balance Sheet 53 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 54 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 55 Capital Projects: Combining Balance Sheet 57 Combining Statement of Revenues, Expenditures, and changes in Fund Balances 59 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ftl 11 CITY OF CARLSBAD TABLE OF CONTENTS, Continued Proprietary Funds: Internal Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenses, and Changes in Retained Earnings Combining Statement of Changes in Financial Position Agency Funds: Combining Statement of Changes in Assets and Liabilities STATISTICAL SECTION: General Government Expenditures by Function Last Ten Fiscal Years General Revenues by Source, Last Ten Fiscal Years Ratio General Bonded Debt to Assessed Valuation and Net Bonded Debt per Capita, Last Ten Fiscal Years Computation of Legal Debt Margin Schedule of Direct and Overlapping Bonded Debt Ratio of Annual Debt Service for General Bonded Debt to Total General Expenditures, Last Ten Fiscal Years Revenue Bond Coverage, Last Ten Fiscal Years Demographic Statistics Schedule of Assessed Valuation, Last Ten Fiscal Years Construction and Business Activity, Last Ten Fiscal Years Schedule of Principal Employers Miscellaneous Statistical Information Page 67 68 69 70 73 75 77 78 79 80 81 82 83 85 86 87 THIS PAGE INTENTIONALLY LEFT BLANK IV 1200 ELM AVENUE CARLSBAD, CALIFORNIA 92008 TELEPHONE: (714)438-5551 3 3 City of Cartebab FINANCE DEPARTMENT November 21, 1983 Honorable Mayor, City Council, and City Manager CITY OF CARLSBAD Carlsbad, California We are pleased to present the 1981-82 Annual Financial Report of the City of Carlsbad to the City Council and the City Manager. This report includes financial statements for all funds and groups of accounts prepared in accordance with generally accepted accounting principles. This report also includes the opinion of our certified public accountants, Conrad and Associates. In 1980-81 the Finance Department initiated an effort to revise prior reporting practices to conform with the standards set by the National Council on Governmental Accounting (NCGA). This effort met with success in early 1982 when the California Society of Municipal Finance Officers (CSMFO) awarded Carlsbad their Certificate of Merit for reporting excellence for the 1980- 81 Annual Financial Report. By complying with the standards set by the NCGA and CSMFO, the City's annual report is a more useful document, both internally and externally. The format of the report is designed to fairly set forth the financial position and results of operation of the city as measured by the financial activity within the various fund types. Accounting System and Budgetary Control There have been no major changes in the City's basic accounting system for 1981-82. The City continues to operate on a modified accrual basis for all governmental type funds. This means that revenues are recorded when received in cash unless susceptible to accrual. Revenues that are accrued must be both measurable and collectable within the period or soon enough after the end of the period to pay liabilities of the period. Expendi- tures, other than interest on long term debt, are recorded when liabilities are incurred. 3 "I* 3 3 The proprietary fund types (the water enterprise and the internal service funds) utilize the accrual method of account- ting. Revenues and expenses are recorded when earned and incurred respectively. Internal controls exist within the accounting system to insure the safety of assets from misappropriation, unauthorized use or dispo- sition, and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based on the cost/benefit of the controls imposed. The cost of a control should not be excessive in relation to its benefit as viewed by city management. The internal controls in existance within the city's system are sufficient to insure both the safety of the City's assets and the accuracy of the financial record keeping system. However, during 1982-83 the Finance Department will institute a series of internal audits to improve the existing system. These audits will cover the areas of fee collection, cash handling, revenue and expenditure processing and basic accounting policies. Budgetary control is maintained through monthly reports on all revenue and expense accounts as well as special reports summa- rizing the financial position of the City. General Governmental Functions The general government function is supported by revenues received and recorded in the general fund, special revenue funds, debt service funds, and capital funds. In 1981-82, revenue in all governmental funds totaled $17.9 million. This represents an increase of about $1.1 million or 6.4% over 1980-81 revenue as shown below: City of Carlsbad Governmental Fund Type Revenue 1981-82 1981-82 Percent Increase (Decrease) Revenue Source Amount ($1000) of Total Over 1980-81 ($1000) Taxes $ 9,771 54.6% $1,259 Licenses & Permits 796 4.5 <500> Intergovernmental Revenue 1,875 10.5 741 Charges for Service 3,458 19.3 <419> Fines & Forfeits 260 1.5 30 Interest Income 1,652 9.2 78 Mi s ce 1 laneous Revenue 76 0 .4 <49> TOTAL REVENUE $ 17,888 100.0% $1,140 Both property and sales taxes were able to record increase over 1980-81 in spite of a slow economy. Revenue from these two sources grew by about $1 million over last year's level. The economy did, however, take its toll in the building and construction related sources such as building permits, engineering fees and planning fees. These fees show a decline of $165,000 or 26% from 1980-81. Capital funds are very dependent upon construction activity for revenue. These funds show a decline of about $660,000 from the 1980-81 level. Vehicle license revenue also showed a substantial reduction from the 1980-81 figures due to major changes in the State's subvention allocation. The state reduced Carlsbad's vehicle license revenue by $433,000 or about 62% between 1980-81 and 1981-82. Expenditures from government fund types totaled $19.6 millon in 1981-82. This is an increase of about $3.2 million or 19.7% over 1980-81. These expenditures are distributed as shown below: City of Carlsbad Governmental Fund Types Expenditures 1981-82 Expenditure Type General Government Public Safety Public Works Culture & Recreation Welfare Debt Service Capital Projects TOTAL EXPENDITURES 1981-82 Amount ($1000) $2,849 4,889 3,063 2,732 650 146 5 ,309 $19,638 Percent Total 14.5% 24.9 15.6 13.9 3.3 0.8 27.0 100.0% of Increase (Decrease) Over 1980-81 ($1000) $<11 2 ,698> ,482 194 470 42 2 ,739 _ Jj "* $3,231 ] Capital projects account for $2.7 million of the $3.2 million increase between 1980-81 and 1981-82. The City's capital program called for major land acquisitions which were accomplished in 1981- 82. The decrease shown in the general governnment program is primarily due to the redistribution of departments rather than accounting for account (a decrease of about $650,000) outlay under lease purchase agreements $899,000). The distribution of retirement costs to all these costs under one central and the reduction in capital (a decrease of about increases shown in public safety are due to the retirement costs - $600,000, and general salary and ] inflationary adjustments. 1m Proprietary Funds For 1981-82, this category includes the water enterprise operation and the Workers' Compensation and General Liability self-insurance internal service funds. The water enterprise fund generates sufficient revenue to support operations and all debt service needs. Revenue is received primarily from the retail sale of water to 7000 customers. During 1981-82 the water enterprise delivered approximately 225 million cubic feet of water to Carlsbad residents. A separate report is available that provides more detail on the water operations for 1981-82. The Workers' Compensation and General Liability se1f-insurance funds were supported by a combination of user charges and contributions from the general fund. The Workers' Compensation self- insurance fund collected about $222,000 in user charges in 1981-82. Contributions from the general fund totaled $250,000 to the Workers' Compensation self-insurance fund and $350,000 to the General Liability self-insurance fund. Self Insurance Program The City has been self-insured for Workers' Compensation since September, 1978. The activity for this program has been contained in the Workers' Compensation self-insurance internal service fund. Workers' Compensation claims for 1981-82 amounted to $173,000. Workers' Compensation premiums would have cost the city about $550,000 to $600,000 if not self-insured. The General Liability se1f-insurance fund was established near the end of fiscal 1980-81. This year represents the first full year of operation under the liability se1f-insurance program. During 1981-82 claims totalling $135,000 were paid out of this fund. Contributions of $350,000 were made from the general fund to support the program and to bring the residual fund equity up to an acceptable level. Cash Management The City Treasurer is charged with the responsibility of safe- guarding the City's assets, receiving all payments due the City and investing all inactive funds. This year the treasurer earned over $2 million in interest on investments in all fund types from instruments earning from 10.75% to 15.75%. This represents an increase of about 11.8% over 1980-81. Funds are invested in various types of notes and certificates and are fully insured or collateralized. At June 30, 1982, the treasurer had 99% of all available funds invested. ] Acknowledgements The preparation of this report has been the joint effort of our independent certified public accountants, the Finance Department and Central Services Department. Each party has played a very important part in the creation of this comprehensive financial report. We appreciation to the staff of Conrad Department and Central Services for wish to express and Associates, their dedicated our the Finance effort s. Our appreciation also goes to both City management and the Council for their support of the Finance staff and this project. Respect 3 Tiott D i.r e ctor 2 3 -J I I I 3 3 3 m • II m ff m m «i m m m & oDC 2 LJU < O cc___ H LL. 1 o! LU z: a. o OJ O 2 <•z u. a. o 2 LJL O I-z 012m U_ > O ?OHby <o O S- O oCO £ < z O 2UL H- < D A m O Q O o H O 111c: o . o u. CO g 'cc O •§ CO§cu CITY OF CARLSBAD City Officials CITY COUNCIL Mary H. Casler, Mayor Claude A. Lewis Girard W. Anear Ann J. Kulchin Richard J. Chick ADMINISTRATION & DEPARTMENT HEADS Frank Aleshire, City Manager Frank Mannen, Assistant City Manager/Administration Ronald Beckman, Assistant City Manager/Development William C. Baldwin, Assistant City Manager/Operations Vincent F. Biondo, Jr., City Attorney Aletha L. Rautenkranz, City Clerk Frank C. Rice, City Treasurer Vincent Jimno, Police Chief James Thompson, Fire Chief David Bradstreet, Parks Director Clifford Lange, Library Director Roger Greer, Utilities Director Jerome N. Pieti, Personnel Director James F. Elliott, Finance Director Ruth Fletcher, Purchasing Officer Martin Orenyak, Building and Planning Director CHAIRPERSONS COMMISSIONS & BOARDS Vernon J. Farrow, Jr. Shirley Dahlquist Seena Trigas John H. Lusignan C. R. Helton Lyle Richardson Planning Commission Parks & Recreation Commission Library Board Traffic Safety Commission Building Authority Parking Authority & Personnel Board CITY OF CARLSBAD ORGANIZATIONAL CHART VOTERS '*•*•>- r C C Cr r~ 1 CITY CLERK I I 1 PARKS & REC COMMISSION I j" PLANNING COMMISSION |— | LIBRARY BD. OF TRUSTEES f— \ PARKING AUTHORITY |-J ACM/ADMINIST PERSONNEL PURCHASING RESEARCH/ANAL^i FINANCE CENTRAL SERVIC 1 CITY rsis "!ES ACM/DEVELOPMENT LAND USE PLANNING ENGINEERING BUILDING HOUSING REDEVELOPMENT ACM/OPERATIONS EQUIPMENT MAID BUILDING MAIN1] STREET MAINT. IT. I CITY COUNCIL J CITY TREASURER 1 MANAGER CITY ATTORNEY! ""iTRAFFIC SFTY. COMMISSION -{PERSONNEL BOARD - ADVISORY COMMITTEE {-[BUILDING AUTHORITY | "^~ "~""1 1 """~|PARKS & REC. 1 ""J. LIBRARY J ^^^^^^^^^ ^^^^^1 THIS PAGE INTENTIONALLY LEFT BLANK 3 I I 1 I i FINANCIAL SECTION 10 ] 3 3 3 3 THIS PAGE INTENTIONALLY LEFT BLANK 3 1 3 3 3 3 11 p CONFvvD CERTIFIED PUBLIC ACCOUNTANTS ASSOCIATES FOURTEEN CORPORATE PLAZA DRIVE NEWPORT BEACH, CALIFORNIA 92660 714/759-0511 The Honorable Mayor and City Council City of Carlsbad, California We have examined the combined financial statements of the City of Carlsbad, California as of and for the year ended June 30, 1982 as listed in the Table of Contents, pageslS through 35 . Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned combined financial statements present fairly the financial position of the City of Carlsbad, California at June 30, 1982 and the results of its operations and the changes in financial position of the proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. The accompanying supplemental information in the combining and individual fund statements and schedules on pages 37 through 71 are not necessary for a fair presentation in conformity with generally accepted accounting principles of the financial posi- tion, results of operations, and changes in financial position (proprietary fund types) of the City of Carlsbad, California but are presented as additional analytical data. The supple- mental information has been subjected to the tests and other auditing procedures applied in the examination of the com- bined financial statements listed in the Table of Contents, but not to the extent necessary for us to formulate an opinion on the combining, individual fund, or account group statements or schedules standing alone. However, in our opinion, the supple- mental data are stated fairly in all material respects in relation to the combined financial statements taken as a whole. •<// September 27,1982 12 CITY OF CARLSBAD Combined Balance Sheet All Fund Types & Account Groups June 30, 1982 General Assets; Cash and cash equivalents (note 4)$2,891,674 Receivables: Taxes Accounts Accrued interest Due from other funds Due from other governments Advances to other funds Advances to other govt's. (note 14) Inventory, at cost Prepaid expenses Restricted assets: Cash & cash equivalents (note 4) Accrued interest Property, plant and equipment (net of accumulated depreciation (note 5) Amount available in debt service funds Amount to be provided, for retire- ment of general long-term debt 93,153 528,763 86,657 457,182 12,544 235,050 5,150 60,221 Total assets $4,370,394 Liabilities: Accounts payable $ 375,812 Accrued wages payable 193,371 Due to other funds 3,177,608 Due to other governments Advances from other funds Deposits payable Deferred compensation payable payable (note 12) 142,723 Estimated claims payable Payable from restricted assets: Accrued interest payable Revenue bonds payable General obligation bonds payable (note 6) Revenue bonds payable (net of unamortized discount of $9,317 and current portion - note 6) Obligations under capital lease (note 7) Deferred revenue Total liabilities $3,889,514 Fund Equity: Contributed capital $ Investment in general fixed assets Retained earnings (note 11): Fund balances (note 11): Total fund equity Total liabilities and fund equity 480,880 480,880 $4,370,394 1 3 Governmental Fund Types Special Revenue Debt Service 10,491 182,261 41,036 155,456 1,444 3,337 65,282 6,348 32,161 12,544 116,335 -0- 3,376,822 123,248 3,376,822 123,248 Sec accompanying notes to combined financial statements. 13 Capital Projects 3,103,913 118,467 2,090,640 3 15,500 22,013 3,054,313 I 3,493,157 123,248 5,182,466 27,022 444,785 471,807 4,710,659 4,710,659 3 •} 3,493,157 123,248 5,182,466 I If I I I I I I I I I I I I I I Proprietary Fund "Types Internal Enterprise Service 1,600,549 979,496 421,570 13,732 4,223 105,432 5,317 1,365,595 8,422 4,463,689 7,984,306 983,719 96,493 990 9,182 12,397 69,774 207,561 115,000 1,017,683 1,308,132 220,948 2,248,965 900,000 4,427,209 <137,229> 6,676,174 762,771 7,984,306 983,719 Fiduciary Totals Fund Type1 ?,' Accoant^Otdupji (Memorandum Only) General General Long- June 30, Agency Fixed Assets Term Debt 1982 1,344,389 12,129,128 526,658 740,256 347 157,613 3,666,951 12,544 235,050 110,582 65,538 1,365,595 8,422 16,393,528 20,857,217 123,248 123,248 1,915,653 1,915,653 1,344,736 16,393,528 2,038,901 41,914,455 26,247 591,846 208,901 3,666,951 12,544 1,318,489 1,388,263 142,723 207,561 115,000 1,145,000 1,145,000 1,017,683 893,901 893,901 1,344,736 -0- 2,038,901 9,390,373 3,148,965 16,393,528 16,393,528 4,289,980 8,691,609 -0- 16,393,528 -0- 32,524,082 1,344,736 16,393,528 2,038,901 41,914,455 June 30, 1981 13,778,640 537,434 448,320 359,079 35,628 23,795 16,725 181 ,928 96,314 5,328 1,322,851 31,731 14,889,728 142,033 2,080,017 33,949,551 745,885 155,997 35,628 23,661 16,725 1,330,770 64,736 97,715 37,334 105,000 1,245,000 1,242,005 977,050 201,003 6,278,509 2,548,965 10,375,233 3,935,466 10,811,378 27,671,042 33,949,551 14 CITY OF CARLSBAD Combined Statement of Revenues,Expenditures and 3 3 *+. Changes in Fund Balance - All Governmental Fund Types ^ * J Year ended June 30, Revenues: Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Interest income Miscellaneous revenues Total revenues Expenditures : General government Public safety Public works Welfare Culture and recreation Capital projects Capital outlay-lease purchase agreements Debt service expenditures Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Lease purchase agreements Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year as previously reported Prior period adjustment (note 2) Fund balances at beginning of year as adjusted Residual equity transfers from (to) other funds (Note 3) Fund balance at end of year 1982 General $ 8,907,984 796,139 95,632 1,383,066 260,498 1,217,863 75,963 12,737,145 2,676,552 4,888,849 1,814,913 2,303,143 11,683,457 1,053,688 <3,054,313> <3,054,313> <2,000,625> 2,981,505 2,981,505 <500,000> $ 480,880 Special Revenue $ 755,895 1,779,611 603,734 295,392 3,434,632 172,507 1,247,521 650,202 429,200 2,499,430 935,202 935,202 2,500,269 <58,649> 2,441,620 3,376,822 m_ ~i• 1J *!fj 3•i 1J 1J 1Ml 1mt ."*%, ^ J See accompanying notes to combined financial statements 15 Debt Service Capital Projects Totals (Memorandum Only) June 30, 1982 June 30, 1981 $ 107,297 20,078 127,375 100,000 46,160 146,160 <18,785> 1,471,293 118,228 1,589,521 5,309,009 5,309,009 <3,719.488> 3.054.313 3.054,313 9,771,176 8,512,356 796,139 1,296,130 1,875,243 1,133,947 3,458,093 3,877,542 260,498 230,684 1,651,561 1,573,375 75,963 124.791 17,888,673 16,748,825 2,849,059 3,648,090 4,888,849 3,407,025 3,062,434 2,868,460 650,202 608,009 2,732,343 2,261,888 5,309,009 2,569,902 899,125 100,000 95,000 46,160 49,600 19,638,056 16,407,099 <1,749.383> 341.726 899,125 3.054.313 <3.054.313> -0- 899,125 <18.785> 142,033 <665,175> <1.749,383> 1,240,851 5,187,571 10,811,378 7,597,305 <58,649> 563,570 142,033 $ 123,248 5,187,571 10,752,729 8,160,875 188,263 <311,737> 1,409.652 4,710,659 8,691,610 10,811,378 16 CITY OF CARLSBAD Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget 4 Actual All Governmental Fund Types Year ended June 30, 1982 Revenues: Taxes Licenses and permits Intergovernmental revenues Charges foe services Fines and forfeits Interest income Miscellaneous revenues Total Revenue* Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Capital outlay, lease purchase agreements Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures (note 10) Excess (deficiency) of revenues over expenditures Other financing sources (uses): Lease purchase agreements Operating Transfers in(ouc) Total other financing suurces(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses Fund balances at beginning of year as previously reported Prior period adjustment (note 2) Fund balances at beginning of year a* adjusted Residual equity transfers from (to) other funds (note 3) Fund balance at end of year Sec accompanying notes to«combined financial statements OBuci.i runu special Kevonii* Fim<l« Budget $ 8,768,000 1,025,000 1,136,500 210,000 1,000,000 90,000 • 12,229,500 3,628,397 5,023,786 2,072,203 2,404,726 11,129, 112 <899,612> i) <899.6I2> 2,981,505 2,981,505 $2,081,893 Actual 8,907,984 796,139 95,632 1,383,066 260,498 1,217,863 75,963 12, 737,145 2,676.552 4,888,819 1,814,913 2,303,143 11,683,457 1,053,688 <3,054,313> <3,054.313> <2,000,625> 2,981,505 2,981,505 <500,000> 480,880 Variance favorable (unfavorable) 139,984 <228,861> 95,632 246,566 50,498 217,863 <14,037> 507,645 451,845 134,937 257,290 101,583 945.655 1,453,300 <3,054,313> <3,054,313> <1,101.013> <500.000> <1.601,013> Budget $ 744,900 1,294,480 636,000 133,000 2,808,380 1,246,300 2,275,886 816.156 530,207 4,868.549 <2,060,169> <2,060,169> 2,500,269 2,500,269 $ 440,100 Actual 755,895 1,779,611 603,734 295,392 3,434,632 172,507 1,247,521 650,202 429,200 2,499,430 935,202 935,202 2,500,269 <58,649> 2,441,620 3,376,822 Variance favorable (unfavorable) 10,995 485.131 <32,266> 162,392 626,252 1,073,793 1,028,365 165,954 101,007 2,369,119 2,995,371 2,995,371 <58,6A9> <58,649> 2,936,722 I I I I I I I I I I 17 I I I f I I I I I I k I I I I I I I Debt Service Funds Variance favorable Budget Actual (unfavorable) Budcet Actual $ 127,500 107,297 <20,203> 2,982,000 1,471,293 11,500 20.078 8,578 170,006 118,228 139,000 127,375 <11.625> 3.152,000 1,589,521 7,970,365 5,309,009 100,000 100,000 42,670 46,160 <3,490> 142,670 146,160 <3,490> 7 970,365 -5,309,009 <3,670> <18,785> <15,115> <4,818,365> <3,719,488> 3,054,313 3,054,313 <3,670> <18,785> <T5,115> <4,818,365> <665,175> 142,033 142,033 5,187,571 5,187,571 142,033 142,033 5,187,571 5,187f571 188,263 $ 138,163 123,248 <15,115 > * 369,206 4,710,659 Variance favorable (unfavorable) <1,510,707> <51,772> <1.562,479> 2,661,356 2,661,357 1,098,877 3,054,313 3,054,313 4,153,190 4,153,190 188,263 4,341,453 I 18 CITY OF CARLSBAD Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types Year ended June 30, 1982 ™*. Totals Operating revenues: Meter water sales Other charges for services Reimbursed expenditures Total operating revenue Operating expenses: Personal services Office expenses Repairs and maintenance Professional services Transportat ion Insurance Purchased water Depreciation and amortization Estimated claims Total operating expenses Operating income (loss) Non-operating revenues (expenses) Interest income Interest expense and fiscal agent fees Contribution & donations from private sources Total non-operating revenues (expenses) Net income (loss) Retained earnings at beginning of year as previously reported Effect of change in accounting principles (note 2) Retained earnings at beginning of year as adjusted Retained earnings at end of year (note 11) Enterprise 1,679,299 7,077 1,686,376 361,552 24,670 100,056 152,333 3,067 18,004 814,410 146,427 1,620,519 65,857 319,583 <69,715> 78,303 328,171 394,028 4,033,181 4,033,181 $4,427,209 Internal Service 222,236 6,700 228,936 308,765 308,765 <79,829> 40,315 40,315 <39,514> <97,715> <97,715> <137,229> (Memorandum June 30, 1982 1,679,299 1 229,313 6,700 1,915,312 1 361,552 24,670 100,056 152,333 3,067 18,004 814,410 146,427 308,765 1,929,284 1 <13,972> 359,898 <69,715> 78,303 368,486 354,514 3,935,466 4 3,935,466 3 4,289,980 3 Only) June 30 , 1981 ,707,757 67,977 ,775,734 326,440 22,420 130,185 120,350 15,876 54,965 842,039 143,481 97,715 ,753,471 22,263 221,857 <74,985> 146,872 169,135 ,616,854 <850,523> ,766,331 ,935,466 See accompanying notes to combined financial statements Water enterprise. 19 CITY OF CARLSBAD Combined Statement of Changes in Financial Position- All Proprietary Fund Types Year ended June 30, 1982 Total (Memorandum Only) Sources of working capital: Operations Net income Items not requiring working capital: Depreciation and amortization Working capital provided by operations Contribution from other funds Total sources of working capital Uses of working capital: Loss from operations Acquisition of property, plant, and equipment Decrease in long-term revenue bonds payable Net increase in other restricted assets Net decrease in other current liabilities payable from retricted assets Total uses of working capital Net increase in working capital Elements of net increase (decrease) in unrestricted working capital: Cash and cash equivalents Accounts receivable Accrued interest receivable Inventory Prepaid expenses Accounts payable Accrued wages payable Estimated claims payable Due to other funds Deposits payable Net increase in working capital Enterprise $394,028 146,427 540,455 540,455 104,943 215,000 19,435 27,334 366,712 $173,743 146,312 9, '355 9,118 292 <2,482> 35,628 <8,353> $173,743 Internal Service 86,009 86,009 600,000 686,009 125,523 125,523 560,486 679,496 4,223 <990> <109,846> <12,397> 560,486 June 30, 1982 480,037 146,427 626,464 600,000 1,226,464 125,523 104,943 215,000 19,435 27,334 492,235 734,229 825,808 13,'578 9,118 <698> <2,482> <109,846> 23,231 <8,353> 734,229 June 30 , 1981 266,850 143,481 410,331 300,000 710,331 97,715 25,355 105,000 102,866 24,344 355,280 355,051 472,003 63,901 <24,709> 5,775 <2,269> 24,693 <6,700> <97,715> <35,628> <44,300> 355,051 See accompanying notes to combined financial statements Water Enterprise. 20 3 3CITY OF CARLSBAD Notes to Combined Financial Statements June 30, 1982 (1) Summary of Significant Accounting Policies 3 The accounting policies of the City of Carlsbad, California conform to generally accepted accounting principles. The following is a summary of the more significant policies: (a) Fund Accounting •. i The accounts of the City are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund or account group are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, reserves, fund balance/retained earnings, revenues and expenditures. The various funds and account groups are summarized by type in the financial statements. Fund types and account groups are used by the City as follows: GOVERNMENTAL FUNDS; General Fund " The General Fund is the general operating fund of the City. All gen- eral tax revenues and other receipts that are not allocated by law or • contractual agreement to some other fund are accounted for in this j§ fund. From the fund are paid the general operating expenses and capi- tal improvement costs which are not paid through other funds. mm Special Revenue Funds The Special Revenue Funds are used to account for revenues derived from specific sources which are usually required by law or adminis- trative regulation to be accounted for in separate funds. Debt Service Funds Debt Service Funds are used to account for the accumulation of re- sources for, and the payment of, general long term debt principal, in- terest and related costs. Capital Project Funds Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facil- ities (other than those financed by proprietary funds). 21 m CITY OF CARLSBAD m Notes to Combined Financial Statements, Continued PROPRIETARY FUNDS Enterprise Fund The Water Utility Fund is used to account for operations that are financed and operated in a manner similar to private business enterprise where the intent of the City Council is that the costs (ex- penses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds Internal Service Funds are utilized to finance and account for activ- ies involved in rendering services to departments within the City. Costs of services are accumulated in these funds and charged to user departments as such costs are incurred. FIDUCIARY FUND Agency Funds The Agency Funds are used to account for assets held by the City in an agency capacity for individuals and private businesses and other governmental agencies. ACCOUNT GROUPS General Fixed Assets Account Group General Fixed Assets have been acquired for general governmental pur- poses. Assets purchased are recorded as expenditures in the govern- mental fund types and capitalized at cost in this group of accounts. In the case of gifts or contributions, such assets are recorded in general fixed assets at fair market value at the time received. Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, and drainage systems have not been capitalized. Such assets normally are immovable and of value only to the City; therefore, stewardship for capital expenditures are satisfied without recording of these assets. No depreciation has been provided on general fixed assets. General Long-Tertn Debt Account Group This group of accounts is used to account for General Long Term Debt (backed by the full faith and credit of the City) including the City's obligations under capital lease. 22 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued .0^ *j(b) Measurement Focus and Basis of Accounting The proprietary (enterprise and internal service) fund types are j accounted for on an "income determination" or "cost of services" measurement focus. Accordingly, all assets and liabilities are in- cluded on the balance sheet, and the reported fund equity provides S an indication of the economic net worth of the fund. Operating state- <• ments for proprietary fund types report increases (revenues) and de- creases (expenses) in total economic net worth. M Governmental (general, special revenue, debt service and capital pro- jects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets, and the reported fund balance pro- vides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases" (expenditures) in available spendable resources. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The modified accrual basis of accounting is followed by the govern- mental funds and fiduciary fund. Under the modified accrual basis of accounting, revenues are recorded when received in cash, unless sus- ceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter • to be used to pay liabilities of the current period. Expenditures, | other than interest on long-term debt, are recorded when liabilities are incurred. m | The accrual basis of accounting is followed by the proprietary funds. (c) Cash Equivalents • •I Cash equivalents are stated at cost, which approximates market. Inventories within the various fund types consist of materials and _ supplies which are valued at cost. m (e) Property, Plant and Equipment - Enterprise Fund ~~ 1 Property, plant and equipment of the enterprise fund is stated at |j cost or fair market value at the date contributed. Depreciation has been provided over the estimated useful lives of the assets using the • straightline method. Sj 23 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (f) Vacation and Sick Leave The City records the cost of vacation and sick leave pay when paid. At June 30, 1982 earned and unused vacation and sick leave amounted to approximately $1,239,372. (g) Budgetary Data The City adopts an annual budget prepared on the modified accural basis consistent with generally accepted accounting principles for governmental funds. (h) Self-Insurance The City is self-insured for general liability and workers' compensation claims up to $100,000, and purchases outside insurance coverage for individual claims in excess of that amount. (i) Memorandum Only Totals Columns in the accompanying financial statements captioned "Total (Memorandum Only)" are not necessary for a fair representation of the financial statements in accordance with generally accepted accounting principles, and are presented as additional analytical data. (j) Encumbrances In accordance with Statement 1 of the National Council on Governmen- tal Accounting, encumbrances outstanding at year end are reported as reservations of fund balances of the governmental funds since they do not constitute expenditures or liabilities. (2) Prior Period Adjustment During 1982, the City's Housing and Urban Development Fund was audited for compliance for the three year period ended June 30, 1981. As a result of the audit findings, adjustments in the amount of $58,649 are required to the beginning fund balance at July 1, 1981. This adjustment reflects a net increase of expenditures of $58,649 applicable to prior periods and consequently reduces fund balance in the same amount. 24 CITY OF CARLSBAD Notes to Combined Financial Statement, Continued (3) Residual Equity Transfers Residual equity transfers of governmental funds represent additions to or deductions from beginning fund balances for residual balances of discon- tinued funds. Residual Equity Transfers are summarized as follows: Increase (decrease) in fund balance: Contribution of Capital to Workers' Compensation and General Liability Self- Insurance Fund Conversion and transfer of Deposit from Agency Fund to Bristol Cove Capital Project Fund Total General Fund $<500,000> Capital Project Fund Type Total 188,263 $<50Q,000>188,263 <500,000> 188,263 <311,737> (4) Cash and Cash Equivalents A summary of cash and cash equivalents as of June 30, 1982 follows: Interest Rates Cost Cash Certificates of Deposit Miscellaneous Investments Banker's Acceptance Notes Federal Agency Notes Repurchase Agreements 13.75 12.47 13.60 13.65 10.75 15.75% 13.02% 13.75% 14.50% 15.75% $ 173,019 9,535,685 185,584 1,959,565 1,040,000 600,870 $13,494,723 f I I I 3 1 3 25 $ 1,386,810 1,635,993 4,964,222 2,388,208 $10,375,233 4,180,523 1,326,554 154,596 474,578 6,136,251 25,176 92,780 117,956 5,567,333 2,962,547 5,093,642 2,770,006 16,393,528 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued (5) Fixed Assets A summary of changes in general fixed assets follows: Balance Balance July 1, 1981 Additions Deductions June 30, 1982 Land Buildings Other Improvements Furniture and Equipment TOTAL A summary of enterprise property, plant and equipment at June 30, 1982 follows: Balance Balance July 1, 1982 Additions Deductions June 30, 1982 Land, water rights and rights of way $ 231,956 $ 231,956 Buildings 37,964 37,964 Wells, reservoirs and dams 1,289,853 1,289,853 Transmission and distri- bution lines 3,819,135 60,554 3,879,689 Purification, pumps and booster stations 147,349 147,349 Fire hydrants 312,665 13,991 326,656 Equipment and vehicles 244,797 13,642 262 258,177 Fire protection services -0- 3,916 3,916 Construction in progress 63,769 12,598 9,550 66,817 6,147,488 104,701 9,812 6,242,377 Less Accumulated Depreciation <1,632,993> <1,778,688> Total $4,514,495 104,701 9,812 4,463,689 26 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued 1 (6)Long-Term Debt A summary of Revenue Bonds Payable - Proprietary (Water Enterprise) Fund is as follows: Balance June 30, 1982 1958 Waterworks Revenue Bonds, principal due in amounts ranging from $35,000 to 47,000 on July 1 of each year through 1988 (Interest is payable on January 1 and July 1 at each year at varying rates from 4.25% to 4.10%) 1960 Waterworks Revenue Bonds, principal due in amounts ranging from $10,000 to 65,000 on July 1 of each year through 1990 (Interest is payable on January 1 and July 1 at each year at varying rates from 4.25% to3.875%) 1970 Waterworks Revenue Bonds, principal due in amounts ranging from $55,000 to $100,000 on July 1 of each year through 1990 (Interest is payable on January 1 and July 1 at each year at varying rates from 6.% to 6.9%) Total revenue bonds payable Less unamortized discount Less current portion Total $ 257,000 195,000 690,000 1,142,000 9,317 <115,000> 1,017,683 A summary of changes in general obligation bonds payable is as follows: Balance Balance July 1, 1981 Additions Payment June 30, 1982 1962 Series A Sewer Bonds, principal due in amounts ranging from $30,000 to $50,000 on July 1 of each year through 1988 (Interest is payable on January 1 and July 1 at 3.5% per annum) $ 280,000 -0-30,000 250,000 1962 Series B Sewer Bonds, principal due in amounts ranging from $40,000 to $100,000 on July 1 of each year through 1991 (Interest is payable on January 1 and July 1 at rates varying from 3.5% to 3.6%)560,000 -0-40,000 520,000 27 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued A summary of changes in general obligation bonds payable is continued as follows: Balance July 1, 1981 Additions Payment Balance June 30, 1982 1962 Series C Sewer Bonds, principal due in amounts ranging from $15,000 to $25,000 on July 1 of each year through 1991 (Interest is payable on January 1 and July 1 at rates varying from 3.6% to 3.75%) 1966 Library Bonds, Principal due in amounts ranging from $10,000 to $25,000 on July 1 of each year through 1992 (Interest is payable on January 1 and July 1 at $225,000 -0-20,000 205,000 4.5% per Debt Fiscal Year 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 annum) Total 180,000 -0- 10,000 1,245,000 -0- 100,000 170,000 1,145,000 Service requirement to maturity: Sewer Interest Due July 4,375 3,675 2,975 2,275 1,575 875 Schedule.of 1962 General Obligation Bonds, Series A, Debt Service to Maturity Interest Total Principal 1 Due January 1 Interest Due July 1 3,675 8,050 40,000 2,975 6,650 40,000 2,275 5,250 40,000 1,575 3,850 40,000 875 2,450 40,000 -0- 875 50,000 Total Annual Debt Service 48,050 46,650 45,250 43,850 42,450 50,875 TOTAL $ 15,750 11,375 27,125 250,000 277,125 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued TOTAL TOTAL Schedule of 1962 General Obligation Sewer Bonds, Series B, Debt Service to Maturity Fiscal Year 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 Interest Due July 1 9,280 8,580 7,880 7,180 6,480 5,760 5,040 3,420 1,800 Interest Due January 1 8,580 7,880 7,180 6,480 5,760 5,040 3,420 1,800 -0- Total Interest 17,860 16,460 15,060 13,660 12,240 10,800 8,460 5,220 1,800 Principal Due July 1 40,000 40,000 40,000 40,000 40,000 40,000 90,000 90,000 100,000 Total Annual Debt Service 57,860 56,460 55,060 53,660 52,240 50,800 98,460 95,220 101,800 $ 55,420 46,140 101,560 520,000 621,560 3 Schedule of 1962 General Obligation Sewer Bonds, Series C, Debt Service to Maturity Fiscal Year 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 Interest Due July 1 3,798 3,437 3,078 2,707 2,338 1,875 1,406 937 469 Interest Due January 1 3,437 3,078 2,707 2,338 1,875 1,406 938 469 -0- Total Interest 7,235 6,515 5,785 5,045 4,213 3,281 2,344 1,406 469 Principal Due July 1 20,000 20,000 20,000 20,000 25,000 25,000 25,000 25,000 25,000 Total Annual Debt Service 27,235 26,515 25,785 25,045 29,213 28,281 27,344 26,406 25,469 I I 1 $ 20,045 16,248 36,293 205,000 241,293 3 29 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued Schedule of 1966 General Obligation Library Bond Debt Service to Maturity 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 Interest Due July 1 $ 3,825 3,488 3,150 2,812 2,475 2,138 1,800 1,462 1,013 562 Interest Due January 1 3,825 3,488 3,150 2,812 2,475 2,138 1,800 1,462 1,013 562 Total Interest 7,650 6,976 6,300 5,624 4,950 4,276 3,600 2,924 2,026 1,124 Principal Due July 1 15,000 15,000 15,000 15,000 15,000 15,000 15,000 20,000 20,000 25,000 Total Annual Debt Service 22,650 21,976 21,300 20,624 19,950 19,276 18,600 22,924 22,026 26,124 TOTAL $ 22,725 22,725 45,450 170,000 215,450 m m (7) Obligations Under Capital Leases In 1967 the Carlsbad Building Authority was created under a joint powers authority with the City and the County of San Diego for the purpose of financing construction at the Carlsbad Civic Center. The joint powers agreement provides that the City will lease the Civic Center for 40 years through 2007 at an annual adjusted base rental of $36,000. In addition, the City is required to pay all taxes, assessments and other expenses of the authority which relate to the Civic Center. The City's leasehold interest of $460,201 in the Civic Center facilities represents the present value at 6% interest of annual payments to the authority over the entire life of the lease. The purchase price is recorded in the general fixed assets of the City. In 1981 the City entered into an agreement with the City of Oceanside to lease public parking area surrounding a regional shopping area. Under the terms of the agreement the City of Carlsbad agreed to pay an aggregate amount of $700,040 including interest of 10%. The annual principal and interest payments are to be $70,000 through 1991 and $1 annually for each of the remaining years of a fifty year lease. The City's leasehold inter- est of $430,152 has been recorded in the City's general fixed assets. m • 30 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued In 1978 the City participated with the City of Oceanside for purchase of an automated circulation system for their respective libraries. The City's leasehold interest of $102,025 is recorded in general fixed assets. The lease purchase requires annual payments of principal of $15,845 through 1983 with interest at 5 1/2 % per annum. In 1981 the City entered into leases for use of certain data processing and word processing equipment. The City's leasehold interests of $123,295 and $72,790 for data processing and word processing equipment, respectively, have been recorded in the general fixed asset group of accounts. The lease agreement for data processing equipment requires monthly payments of principal and interest at 10% per annum of $2,598 per month through February 1987. The lease agreement for word processing equipment requires monthly payments of principal and interest at 10% of $1,547 through March 1986. The following is a summary by years of future minimum lease payments under capital leases with the present value of minimum lease payments at June 30, 1982: Year Ending June 30 Total Lease Payments 1983 $ 173,326 1984 172,453 1985 155,738 1986 154,191 1987 126,784 1988 - 2007 1,000,040 Total minimum lease payments 1,782,532 Less amount representing interest 888,631 Present value of minimum lease payments $ 893,901 (8) Rentals Under Operating Leases Under an agreement dated August 1969, the City of Carlsbad has leased from the Parking Authority of the City of Carlsbad off street parking facilities surrounding the East Section of Plaza Camino Real Shopping Center. The City has agreed to pay an annual rental of $138,400 plus taxes, insurance and other operating costs. The lease terminates on the date the revenue bonds issued by the Parking Authority have been retired or provision for payments made. Bonds of the Parking Authority are scheduled to be retired annually through 1995. 31 CITY OF CARLSBAD Ml HI Notes to Combined Financial Statements, Continued ^ In December 1980, the City entered into a second lease agreement with the Carlsbad Parking Authority for the purpose of the Authority acquiring a UP site and offstreet parking improvements thereon. The City's obligation for an annual rental amount commenced on April 1, 1981 in an annual amount "* of $174,000 payable in quarterly payments each January 31, April 30, July 31, and October 31 through 2001.in H During 1972, the City entered into an agreement with the Tri-City Auto Dealers Association for the construction of a road and subsequent use by mi the City. The City is obligated to pay an annual rental of $54,658 through 1983 subject to certain conditions to be met by the Association. The following is a schedule by years of minimum future rentals for the City's operating leases at June 30, 1982. Year Ending June 30 Amount m 1983 $ 367,058 1984 312,400 «* 1985 312,400 1986 312,400 m 1987 312,400 1988 - 2001 3,470,686 $5,087,344 m Rental expense charged to general fund expenditures in 1982 was $210,458. • m (9) Retirement Plan The City is a participant in the Public Employees Retirement System (PERS) of the State of California covering all the City's permanent employees. The total pension expense of the City for the current year was $1,215,769 Hi for current and past service costs. Pension costs are recorded as expenditures when paid and are funded by monthly contributions to PERS. * Contributions are based on rates set by PERS based on certain actuarial g| assumptions, such as length of employment, estimated salary rates, mortality rates, projected retirement benefits and other factors. At June _ 30, 1981, the plan net assets available for benefits totaled $7,143,877 and y the present value of the City's unfunded obligation for prior service costs •* totaled $87,196 which will be funded through the year 2000 from established contribution rates. The excess, if any, of the actuarially ™ computed value of vested benefits to City employees over amounts available Ml in the PERS pension fund is not determinable under the PERS system of accounting. 32 CITY OF CARLSBAD Notes to Combined Financial Statements, Continued ^^ ^J (10) Excess of Expenditures over Appropriations Expenditures exceeded appropriations in the following funds: T Excess of Expenditures Expenditures Appropriations Over Appropriations I Special Revenue Funds: Library Service Act $ 13,353 12,435 918 National Endowment for Humanities 1,751 -0- 1,751 Debt Service Funds: Sewer Bonds $128,235 124,570 3,665 (11) Fund Balances/Retained Earnings The following is a summary of reserved and unreserved fund balances and retained earnings: Totals Governmental Fund Types (Memorandum Only) Special Debt Capital June 30 / June 3ti*"7 General Revenue Service Projects 1982 1981 Fund balances: Reserved for encumbrance 228,136 119,256 36,376 383,768 964,426 Reserved for inventory supplies 5,150 5,150 Reserved for advances to other funds 12,544 12,544 16,725 Reserved for advances to the Carlsbad Redevelopment Agency. 235,050 235,050 181,928 Reserved for debt service 123,248 123,248 142,033 Unreserved: Designated for approved capital projects 1,131,783 3,774,786 4,906,569 4,906,569| Undesignated 2,125,783 899,497 3,025,280 4,599,69?" Total Fund Balances 480,880 3,376,822 123,248 4,710,659 8,691,609 10,811,378 33 p m CITY OF CARLSBAD Notes to Combined Financial Statements, Continued m m Proprietary Fund Types Internal Enterprise Service Retained Earnings: Reserved for continuing appropriations Reserved for construction Reserved for debt service Unreserved Total Retained Earnings Totals (Memorandum only) June 30 , June 30 , 1982 1981 474,080 527,161 883,998 2,541,970 4,427,209 <137,229> <137,229> 474,080 527,161 883,998 2,404,741 4,289,980 2,069,000 382,715 837,438 646,313 3,935,466 The following funds reported deficits in their respective fund balances at June 30, 1982: Workers' compensation (internal service fund) General liability self-insurance (internal service fund) Amount of Deficit to Fund Balance $ 11,706 125,523 (12) Deferred Compensation Plan The City has established a deferred compensation plan, whereby City employ- ees may elect to defer portions of their compensation in return for retire- ment, disability and death benefits. Amounts deferred may not exceed the lesser of $7,500 or 25% of a participant's "includable compensation", as defined in the participation agreement. The City makes no contribution to the plan. Plan assets were invested during the year in short-term certificates of deposit. At June 30, 1982, the amount of the deferred com- pensation investments (and the resultant liability recorded in the General Fund) was $142,723. Distributions are made upon the occurrence of the participant's termination, retirement, death or total disability, and in a manner in accordance with the election made by the participant. All City employees are eligible for plan participation. (13) Contingent Liabilities The City is a defendant in certain legal actions arising in the normal course of operations. In the opinion of rranagement and legal counsel, anv liability resulting from these actions will not result in a material adverse effect on the City's financial position. 34 3 CITY OF CARLSBAD |f Notes to Combined Financial Statements, Continued (14) Advances to The Redevelopment Agency (RDA) Advances to the Redevelopment Agency represents $235,050 due from the Carlsbad Redevelopment Agency in connection with Carlsbad Village Redevelopment Plan. The Agency is expected to repay the $235,050 and subsequent advances in accordance with a cooperation agreement between the Agency and the City of Carlsbad. The agreement establishes a repayment schedule and a 10% interest rate on all advances. Repayment is expected to begin when tax increment funds are received by the Agency. I 3 3 35 1 SUPPLEMENTAL DATA 36 CITY OF CARLSBAD General Fund Schedule of Revenues Year ended June 30, 1982 3 Taxes: Property taxes Sales and use taxes Transient lodging taxes Franchise taxes Real property transfer taxes Cigarette taxes Trailer coach in-lieu tax Other Total taxes Licenses and permits: Alcoholic beverage licenses Vehicle licenses (in-lieu) Construction permits Business licenses Other Total licenses and permits Intergovernmental: Grants Total intergovernmental Charges for services: Zoning and subdivision fees Sales of maps and publications Plan checking fees Engineering fees Library fees Ambulance fees Refuse collection fees Other Total charges for services Fines and forfeits: Vehicle code fines Other Total fines and forfeits Interest income Miscellaneous: Reimbursed expenditures Sale of property Rents Other Total miscellaneous Total Revenues See accompanying accountants' report Budget $ 3,734,000 3,762,000 675,000 292,000 100,000 155,000 50,000 -0- 8,768,000 -0- 340,000 400,000 285,000 -0- 1,025,000 -0- -0- 65,700 20,500 300,000 200,000 10,000 55,000 359,000 126,300 1,136,500 210,000 -0- 210,000 1,000,000 35,000 12,000 13,000 30,000 90,000 $12,229,500 Actual $ 3,637,433 3,941,152 734,344 288,956 100,676 156,339 48,338 746 8,907,984 -0- 265,222 271,542 258,663 712 796,139 95,632 95,632 85,840 19,562 358,863 210,513 13,511 47,609 433,035 214,133 1,383,066 235,871 24,627 260,498 1,217,863 54,993 8,700 7,969 4,301 75,963 12,737,145 Variance Favorable (Unfavorable) $ <96,567> 179,152 59,344 <3,044> 676 1,339 <1,662> 746 139,984 -0- <74,778> <128,458> <26,337> 712 <228,861> 95,632 95,632 20,140 <938> 58,863 10,513 3,511 <7,391> 74,035 87,833 246,566 25,871 24,627 50,498 217.863 19,993 <3,300> <5,031> <25,699> <14,037> 507,645 37 CITY OF CARLSBAD General Fund Schedule of Expenditures Year ended June 30, 1982 General government: City Council City Manager City Clerk Administration City Attorney Finance City Treasurer Central Services Purchasing Personnel Planning Insurance Administration Community promotion Senior Citizens programs Leases Weed abatement Retirement Contingencies Capital improvements Urban redevelopment and housing Building maintenance Other Total general government Public safety: Fire protection Police Protection Building inspection Total public safety Public works: Administration Utilities maintenance Engineering Streets Mechanical maintenance Waste collection Sanitation services Total public works Culture and recreation: Parks and recreation Library Total culture and recreation Budget Actual Variance Favorable (Unfavorable) 52,536 207,401 18,250 -0- 142,004 212,251 3,910 371,504 52,812 172,200 577,550 245,846 45,045 37,825 420,525 15,515 -0- 679,136 17,436 166,115 144,611 45,925 3,628,397 2,004,568 2,582,330 436,888 5,023,786 53,169 34,504 637,427 1,007,748 8,500 -0- 330,855 2,072,203 1,426,316 978,410 2,404,726 $ 35,635 203,812 7,349 -0- 148,044 186,797 3,562 335,099 48,242 164,455 536,809 125,458 45,045 37,825 473,164 8,180 -0- -0- 28,742 110,933 136,929 40,472 2,676,552 1,942,792 2,512,207 433,850 4,888,849 40,119 35,022 553,244 753,617 3,413 -0- 429,498 1,814,913 1,363,226 939,917 2,303,143 $ 16,901 3,589 10,901 -0- <6,040> 25,454 348 36,405 4,570 7,745 40,741 120,388 -0- -0- <52,639> 7,335 -0- 679,136 <11,306> 55,182 7,682 5,453 951,845 61,776 70,123 3,038 134,937 13,050 <518> 84,183 254,131 5,087 -0- <98,643> 257,290 63,090 38,493 101,583 Total Expenditures $13,129,112 11,683,457 1,445,655 See accompanying accountants' report 38 CITY OF CARLSBAD Special Revenue Funds Combining Balance Sheet June 30, 1982 Library Services Gas Tax Act Assets Cash and cash equivalents $903,495 95,303 Receivables: Taxes Accounts 31,052 Accrued interest 3,036 705 Due from other funds Due from other governments Total assets $937,583 96,008 Liabilities and Fund Balances Liabilities: Accounts Payable 360 Accrued wages payable Advance from General Fund Due to other funds Due to other governments Deferred revenue Total liabilities 360 Fund balances: Reserved for encumbrances 5,000 Unreserved: Designated for approved capital projects 180,939 Undesignated 751,644 95,648 Total fund balances 937,583 95,648 Total liabilities and fund balances $937,583 96,008 National En- dowment for Humanities Sanitation 2,730 188,931 26,090 2,234 2,730 217,255 750 2,451 3,102 750 5,553 721 1,980 210,981 1,980 211,702 2,730 217,255 ] 3 3 3 See accompanying accountants' report 39 Section 8 Community Totals State Street Revenue Housing Development June 30, June 30, Grants Lighting Sharing Authority Block Grant 1982 1981 37,154 40,000 496 32,161 109,811 15,000 94,811 109,811 197,251 1,408,468 10,491 5,913 3,656 30,909 123,295 217,311 1,562,672 4,524 5,886 1,962 12,544 32,161 19,030 38,047 8,775 79,172 709,861 189,506 735,592 198,281 1,524,625 264,810 17 264,827 51,311 557 51,868 212,959 212,959 Hi 5,771 79,189 84,960 727 727 10,588 240,983 109,811 217.311 1,562,672 264,827 84,960 10,491 182,261 41,036 155,456 119,256 1,131,783 2,125,783 3,103,913 2,775,662 24,351 10,634 56,283 21,628 23,795 3,493,157 2,912,353 65,282 6,348 12,544 32,161 116,335 167,648 3,047 16,725 23,661 201,003 412,084 644,951 1,131,783 723,535 84,233 3,376,822 2,500,269 3,493,157 2,912,353 40 CITY OF CARLSBAD Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended June 30, 1982 Hi Revenues: Taxes Intergovernmental Charges for services Interest income.:*=*^£* Total revenues Expenditures: General government Public works Culture and recreation Welfare Total expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year as previously reported Prior period adjustment Fund balance at beginning of year as adjusted Residual equity transfers Fund balance at end of year Gas Tax $306,759 12,612 78,587 397,958 135,259 674,884 $937,583 Library Services Act 63,040 4,745 67,785 National En- dowment for Humanities Sanitation 41,216 95,648 3,015 _ ]_2 3,027 704 1,980 603,734 15,758 619,492 560,509 135,259 262,699 674,884 13,353 13,353 54,432 41,216 1,751 1,751 1,276 704 560,509 58,983 152,719 152,719 211,702 See accompanying accountants' report 41 Totals State Grants 72,161 4,124 76,285 Street Lighting 449,136 164,751 5,385 619,272 415,316 415,316 Revenue Sharing 482,011 170,737 652,748 172,507 50,538 414,096 637,141 Section 8 Housing Authority 813,557 14,549 828,106 650,202 650,202 Community Development Block Grant 168,464 1,495 169,959 85,899 85,899 Year June 30, 1982 755,895 1,779,611 603,734 295,392 3,434,632 172,507 1,247,521 429,200 650,202 2,499,430 Ended June 30, 1981 627,066 1,084,137 596,332 305,525 2,613,060 79,083 1,440,750 611,891 608,009 2,739,733 76,285 203,956 15,607 177,904 84,060 33,526 <5,675> 1,509,018 93,704 <58,649> 33,526 <5,675> 1,509,018 35,055 173 173 935,202 <126,673> 109,811 198,281 1,524,625 212,959 2,500,269 2,322,361 <58,649> 130,895 2,441,620 2,453,256 173,686 84,233 3,376,822 2,500,269 42 CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Budget Revenues: Taxes $ 295,000 Intergovernmental revenues Charges for services Interest income 30,000 Total Revenues 325,000 Expenditures: General government Public Safety Public Works 321,216 Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures 321,216 Excess (deficiency) of revenues over expenditures 3,784 Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses 3,784 Fund balances at beginning of year as previously reported 674,884 Prior period adjustment Fund balances at beginning of year as adjusted 674,884 Residual equity transfers from (to) other funds Fund balance at end of year 678,668 Gas Tax Fund Actual 306,759 12,612 78.587 397,958 135,259 135,259 262,699 262,699 674,884 674,884 937,583 Variance favorable (unfavorable) 11,759 12,612 48,587 72,958 185,957 185,957 258,915 258,915 3 258,915 See accompanying accountants' report 43 CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Revenues: Taxes Intergovernmental revenues Charges for services Interest income Total Revenues Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating Transfers in(out) Budget 12,435 12,435 O2.435 > Library Services Act Actual 63,040 4,745 67,785 13,353 13.353 54,432 Variance favorable (unfavorable) 63,040 4,745 67,785 <918> <918> 66,867 Excess (deficiency) of revenues •_ and other sources over expend- itures and other uses <12,435> 54,432 Fund balances at beginning of year as previously reported 41,216 41,216 "* Prior period adjustment ft Fund balances at beginning of year as adjusted 41,216 41,216 m Residual equity transfers from (to) _l other funds m Fund balance at end of year 28,781 95,648 66,867 66,867 f\ee accompanying accountants' report W* 44 CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 National Endowment for Humanities Revenues: Taxes $ Intergovernmental revenues Charges for services Interest income Total Revenues Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses Fund balances at beginning of year as previously reported Prior period adjustment Fund balances at beginning of year as adjusted Residual equity transfers from (to) other funds Fund balance at end of year Budget 704 704 704 Actual 3,015 12 3,027 1,751 1,751 1,276 1,276 704 704 1,980 Variance favorable (unfavorable) 3,015 12 3,027 1,751 1,751 1,276 1,276 1,276 J I See accompanying accountants' report 45 CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Budget Revenues: Taxes $ Intergovernmental revenues M Charges for services 636,000 Interest income 3,000 m Total Revenues 639,000 M Expenditures: General government m Public Safety Public Works 695.7129HHWelfare to Culture and recreation Capital projects «"• Debt service expenditures: Principal retirement W*" Interest and fiscal charges pt Total Expenditures 695,712 *i Excess (deficiency) of revenues over expenditures <56,712> *0ther financing sources (uses): Hi Operating Transfers in(out) mm Total other financing sources(uses) £H Excess (deficiency) of revenues and other sources over expend- itures and other uses <56,712> ••Fund balances at beginning of year as previously reported 152,719 PPrior period adjustment lyFund balances at beginning of year as adjusted 152,719 pftesidual equity transfers from (to) other funds Fund balance at end of year 96,007 Sanitation Actual 603,734 15,758 619,492 560,509 560,509 58,983 58,983 152,719 152,719 211,702 Variance favorable (unfavorable) <32,266> 12,758 <19,508> 135,203 135,203 115.695 115,695 115,695 See accompanying accountants' report 46 CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Revenues: Taxes $ Intergovernmental revenues Charges for services Interest income Total Revenues Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses Fund balances at beginning of year as previously reported Prior period adjustment Fund balances at beginning of year as adjusted Residual equity transfers from (to) other funds Fund balance at end of year Budget 33,526 33,526 33,526 State Grants Actual 72,161 4,124 76,285 76,285 76,285 33,526 33,526 109,811 Variance favorable (unfavorable) 72,161 4,124 76,285 76,285 76,285 -0- -0- 76,285 See accompanying accountants' report 47 p m CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Budget Revenues: m Taxes $ 449,900 Intergovernmental revenues Charges for services Interest income m Total Revenues 449,900 P" Expenditures: fc General government Public Safety „ Public Works 612,545 Welfare ** Culture and recreation Capital projects *"* Debt service expenditures: Principal retirement **-"" Interest and fiscal charges Total Expenditures 612,545 Excess (deficiency) of revenues over expenditures <162,645> Other financing sources (uses): • Operating Transfers in(out) •* Total other financing sources(uses) m Excess (deficiency) of revenues m and other sources over expend- itures and other uses <162,645> Fund balances at beginning of year as previously reported <5,675> " Prior period adjustment H Fund balances at beginning of year as adjusted <5,675> •• Residual equity transfers from (to) _ other funds _ Fund balance at end of year <168,320> Street Lighting Actual 449,136 164,751 5,385 619,272 415,316 415,316 203,956 203,956 <5,675> <5,675> 198,281 Variance favorable (unfavorable) <764> 164,751 5.385 169,372 197,229 197,229 366,601 366,601 366,601 accompanying accountants' report 48 CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30,1982 Revenue Sharing Revenues: Taxes Intergovernmental revenues Charges for services Interest income Total Revenues Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses Fund balances at beginning of year as previously reported Prior period adjustment Fund balances at beginning of year as adjusted Residual equity transfers from (to) other funds Fund balance at end of year See accompanying accountants' report Budget $ 440,000 100,000 540,000 1,246,000 224,000 518,072 1,988,072 <1,448,072> Actual 482,011 170,737 652,748 172,507 50,538 414,096 637,141 15,607 Variance favorable (unfavorable) 42,011 70,737 112,748 1,073,793 173,462 103,676 1,350,931 1,463,679 s) <1,448,072> 1,509,018 1,509,018 60,946 15,607 1,509,018 1,509,018 1,524,625 1,463,679 1,463,679 3 I 3 3 1 49 3 CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Housing Authority - Section 8 Budget Revenues: Taxes $ Intergovernmental revenues 816,200 Charges for services Interest income Total Revenues 816,200 Expenditures: General government Public Safety Public Works Welfare 816,156 Culture and recreation Capital projects Debt service expenditures: Principal retirement -" Interest and fiscal charges Total Expenditures 816,156 Excess (deficiency) of revenues over expenditures 44 Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses 44 Fund balances at beginning of year as previously reported 93,704 Prior period adjustment Fund balances at beginning of year as adjusted 93,704 Residual equity transfers from (to) other funds Fund balance at end of year 93,748 Actual 813,557 14,549 828,106 650,202 650,202 177.904 177,904 93,704 <58,649> 35,055 212,959 Variance favorable (unfavorable) <2,643> 14,549 11,906 165,954 165.954 177,860 177,860 <58,649> <58,649> 119,211 See accompanying accountants' report 50 CITY OF CARLSBAD Special Revenue Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Community Development Block Grant Budget Revenues: Taxes $ Intergovernmental revenues 38,280 Charges for services Interest income Total Revenues 38,280 Expenditures: General government Public Safety Public Works 422,413 Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures 422,413 Excess (deficiency) of revenues over expenditures <384,133> Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses <384,133> Fund balances at beginning of year as previously reported 173 Prior period adjustment Fund balances at beginning of year as adjusted 173 Residual equity transfers from (to) other funds Fund balance at end of year <383,960> Actual 168,464 1,495 169,959 85,899 85,899 84,060 84,060 173 173 84,233 Variance favorable (unfavorable) 130,184 1.495 131,679 336,514 336,514 468,193 468,193 468,193 See accompanying accountants' report 51 THIS PAGE INTENTIONALLY LEFT BLANK 52 3 Assets Cash and cash equivalents Taxes receivable Accrued interest receivable Total assets CITY OF CARLSBAD Debt Service Funds Combining Balance Sheet June 30, 1982 Library Bonds $ 54,040 $ 55,397 Sewer Bonds 64,427 1,444 1.357 1,980 67,851 Totals I June 30, 1982 118,467 1,444 3,337 June 30, 1981 129,198 9,462 3,373 123,248 142,033 Liabilities and Fund Balances Fund balance - reserved for debt service Total liabilities and fund balances 123,248 142,033 123,248 142,033 See accompanying accountants' report a 53 CITY OF CARLSBAD Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1982 Library Bonds Sewer Bonds Totals Year Ended June 30, 1982 June 30, 1981 Revenues: Taxes Interest income Total revenues 4,899 4,899 107,297 15,179 122,476 107,297 20,078 127,375 113,036 13,549 126,585 Expenditures: Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Fund balances at beginning of year Fund balances at end of year 10,000 7,925 90,000 38,235 17,925 128,235 <13,026> <5,759> 68,423 73.610 $ 55,397 67,851 100,000 46,160 146,160 95,000 49,600 144,600 <18,015> 160,048 142,033 See accompanying accountants' report 54 CITY OF CARLSBAD Debt Sevice Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Budget Revenues: Taxes $ Intergovernmental revenues Charges for services Interest income 9,000 Total Revenues 9,000 Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement 10,000 Interest and fiscal charges 8,100 Total Expenditures 18,100 Excess (deficiency) of revenues over expenditures <9,100> Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses <9,100> Fund balances at beginning of year as previously reported 68,423 Prior period adjustment Fund balances at beginning of year as adjusted 68,423 Residual equity transfers from (to) other funds Fund balance at end of year 59,323 Library Bonds Actual 4,899 4,899 10,000 7.925 17,925 <13,026> <13,026> 68,423 68,423 55,397 Variance favorable (unfavorable) 175 175 <3.926> <3,926> <3,926> See accompanying accountants' report 55 CITY OF CARLSBAD Debt Service Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Budget Revenues: Taxes $ 127,500 Intergovernmental revenues Charges for services Interest income 2,500 Total Revenues 130,000 Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses 5,430 Fund balances at beginning of year as previously reported 73,610 Prior period adjustment 'Fund balances at beginning of year as adjusted 73,610 'Residual equity transfers from (to) i other funds iFund balance at end of year 79,040 Sewer Bonds Actual 107,297 15,179 122,476 124,570 124,570 5,430 90,000 38,235 128,235 <5,759> <5,759> 73,610 73,610 67,851 Variance favorable (unfavorable) <20,203> 12,679 <7.524> 34,570 <38,235> <3,665> :n,i89> e accompanying accountants' report 56 CITY OF CARLSBAD Capital Projects Funds Combining Balance Sheet June 30, 1982 I Assets Cash and cash equivalents Accounts receivable Accrued interest receivable Due from other funds Total assets Capital Construction $ 3,054,313 $ 3,054,313 Sewer Construction 137,283 15,500 152,783 I ] Liabilities and Fund Balances Liabilities: Accounts payable Due to other funds Total liabilities 13,822 444,785 458,607 Fund balances: Reserved for encumbrances Unreserved: Designated for approved capital projects Undesignated Total fund balances Total liabilities and fund balances 8,863 $ 3,353,751 <766,908> 2,595,706 3,054,313 83,535 69,248 152,783 152,783 See accompanying accountants' report 57 Public Facilities Construction Park Development Bristol Cove Planned Local Drainage Facilities Totals June 30, 1982 June 30, 1981 1,185,202 22,013 1,207,215 696,013 696,013 43,824 43,824 28,318 28,318 2,090,640 15,500 22,013 3,054,313 5,179,581 21,068 14,000 5,182,466 5,214,649 13,200 13,200 27,022 444,785 471,807 27,078 27,078 8,575 86,000 1,099,440 1,194,015 1,207,215 18,938 251,500 425,575 696,013 696,013 43,824 43,824 43,824 28,318 28,318 28,318 36,376 3,774,786 899,497 4,710,659 5,182,466 14,375 3,774,786 1,398,410 5,187,571 5,214,649 58 CITY OF CARLSBAD Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Year ended June 30, 1982 Revenues: Charges for services Interest income Total revenues Capital Construction Sewer Construction 884,479 8,595 893,074 Expenditures: Police and Utility Service Center 2,002,162 Macario Canyon 2,085,514 Community Development Center Encina Water Pollution Control Facility Other construction projects 125,541 Total expenditures 4,213,217 919,933 57,004 976,937 Excess (deficiency) of revenues over expenditures Other financing sources (use): Operating transfer in (out) Excess (deficiency) of revenues over expenditures Fund balances at beginning of year Effect of change in accounting principles Fund balance at beginning of year, as adjusted Residual equity transfer transfer from (to) other funds Fund balance at end of year <4,213,217> 3,054,313 <1,158,904> 3,754,610 3,754,610 2,595,706 <83,863> <83,863> 236,646 236,646 152,783 See accompanying accountants' report 59 Public Facilities Construction 418,160 108,626 526,786 30,805 30,805 495,981 495,981 698,034 698,034 1,194,015 Park Bristol Development Cove 158,979 455 158,979 455 88,050 88,050 70,929 455 70,929 455 625,084 <144,894> 625,084 <144,894> 188,263 696,013 43,824 Planned Local Drainage Facilities 9,675 552 10,227 10,227 10,227 18,091 18,091 28,318 Totals Year June 30, 1982 1,471,293 118,228 1,589,521 2,002,162 2,085,514 919,933 301,400 5,309,009 <3,719,488> 3,054,313 <665,175> 5,187,571 5,187,571 188,263 4,710,659 Ended June 30, 1981 2,140,304 100,694 2,240,998 212,362 1,978,565 378,975 2,569,902 <328,904> <328,904> 5,312,096 204,379 5,516,475 5,187,571 60 CITY OF CARLSBAD Capital Projects Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Capital Construction Revenues: Taxes Intergovernmental revenues Charges for services Interest income Total Revenues Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures Budget Actual -0--0- 5,288,293 4,213,217 4,213,2175,288,293 Excess (deficiency) of revenues over expenditures <5,288,293> <4,213,217> Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) 3.054,313 3,054,313 Excess (deficiency) of revenues and other sources over expend- itures and other uses Fund balances at beginning of year as previously reported Prior period adjustment Fund balances at beginning of year as adjusted Residual equity transfers from (to) other funds Fund balance at end of year <5,288.293> <1,158,904> 3,754,610 3,754,610 3,754,610 3,754,610 Variance favorable (unfavorable) -0- 1,075,076 1,075,076 1.075,076 3,054.313 3.054,313 4.129,389 <1,533,683> 2,595,706 4,129,389 See accompanying accountants' report 61 CITY OF CARLSBAD Capital Projects Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30,1982 Sewer Construction • Budget Revenues: m Taxes $ Intergovernmental revenues Charges for services 1,532,000 Interest income 20,000 • Total Revenues 1,552,000 * Expenditures: General government Public Safety „, Public Works Welfare *• Culture and recreation Capital projects 1,991,197 ** Debt service expenditures: Principal retirement '***" Interest and fiscal charges m Total Expenditures 1,991,197 Excess (deficiency) of revenues over expenditures <439,197> Other financing sources (uses): <• Operating Transfers in(out) * Total other financing sources(uses) Excess (deficiency) of revenues m and other sources over expend- itures and other uses <439,197> Fund balances at beginning of year as previously reported 236,646 Prior period adjustment H Fund balances at beginning of year as adjusted 236,646 Ml Residual equity transfers from (to) _« other funds Actual 884,479 8,595 893.074 976,937 976,937 <83,863> Fund balance at end of year <202,551> <83,863> 236,646 236,646 152,783 Variance favorable (unfavorable) <647,521> <11,405> <658,926> 1,014,260 1,014,260 355,334 355,334 355,334 ,§ee accompanying accountants' report 62 CITY OF CARLSBAD Capital Projects Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, Public 1982 Facilities Construction Budget Revenues: Taxes $ Intergovernmental revenues Charges for services 1,150,000 Interest income 150,000 Total Revenues 1,300,000 Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects 504,375 Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures 504,375 Excess (deficiency) of revenues over expenditures 795,625 Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses 795,625 Fund balances at beginning of year as previously reported 698,034 Prior period adjustment Fund balances at beginning of year as adjusted 698,034 Residual equity transfers from (to) other funds Fund balance at end of year 1,493,659 Actual 418,160 108,626 526,786 30,805 30.805 495,981 495,981 698,034 698,034 1,194,015 Variance favorable (unfavorable) <731,840> <41,374> <773,214> 473,570 473.570 <299,644> <299,644> <299,644> 3 3 3 See accompanying accountants' report 63 CITY OF CARLSBAD Capital Projects Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Park Development Budget Revenues: Taxes $ Intergovernmental revenues " Charges for services 300,000 Interest income m Total Revenues 300,000 w Expenditures: General government l* Public Safety Public Works Welfare MI Culture and recreation Capital projects 186,500 • Debt service expenditures: Principal retirement "•W Interest and fiscal charges m Total Expenditures 186,500 ** Excess (deficiency) of revenues over expenditures 113,500 Other financing sources (uses): • Operating Transfers in(out) MI Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses 113,500 • Fund balances at beginning of year as previously reported 625,084 ** Prior period adjustment H Fund balances at beginning of year as adjusted 625,084 MJ Residual equity transfers from (to) other funds Fund balance at end of year 738,584 m See accompanying accountants' report Actual 158,979 158,979 88,050 88,050 70,929 70,929 625,084 625,084 696,013 Variance favorable (unfavorable) 141,021 98,450 98,450 <42,571> <42,571> <42,571> 64 CITY OF CARLSBAD Capital Projects Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Bristol Cove Revenues: Taxes $ Intergovernmental revenues Charges for services Interest income Total Revenues Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement Interest and fiscal charges Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses Fund balances at beginning of year as previously reported Prior period adjustment Fund balances at beginning of year as adjusted Residual equity transfers from (to) other funds Fund balance at end of year Budget Actual Variance favorable (unfavorable) 455 455 455 455 <144,894> <144,894> 455 455 455 455 <144,894> <144,894> <144,894> 188.263 43,824 188,263 188,718 3 3 See accompanying accountants' report 65 I m CITY OF CARLSBAD Capital Projects Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 1982 Planned Local Drainage Facility m m m m m m Revenues: Taxes $ Intergovernmental revenues Charges for services Interest income Total Revenues Expenditures: General government Public Safety Public Works Welfare Culture and recreation Capital projects Debt service expenditures: Principal retirement »"*' Interest and fiscal charges Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating Transfers in(out) Total other financing sources(uses) Excess (deficiency) of revenues and other sources over expend- itures and other uses Fund balances at beginning of year as previously reported Prior period adjustment Fund balances at beginning of year as adjusted Residual equity transfers from (to) other funds Fund balance at end of year Budget 18,091 18,091 18,091 Actual 9,675 552 10,227 10,227 10,227 18,091 18,091 28,318 Variance favorable (unfavorable) 9,675 552 10.227 10,227 10.277 10,227 See accompanying accountants' report 66 Assets Current assets: Cash and cash equivalents Accrued interest receivable Total current assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Estimated claims payable Due to other funds Total current liabilities Total liabilities Contributed capital: Contributed from Other Funds Retained earnings (deficit): Unreserved CITY OF CARLSBAD Internal Service Funds Combining Balance Sheet June 30, 1982 Totals Workers' Compensation General Liability Self Insurance June 30,June 30, 1982 1981 $ 990 151,465 12,397 $ 450,000 <11,706> Total fund equity 438,294 Total liabilites and fund equity $ 603,146 See accompanying accountants' report I I$ $ 600, 2, 603, 603, s^ssssssss 172 974 146 146 u-j—i..a 379, 1, 380, 380, 324 249 573 573 979, 4, 983, 983, ^ssmx^as 496 223 719 719 s=ss= 300 300 300 ,000 ,000 ,000 450,000 56,096 56,096 56,096 990 207,561 12,397 220,948 220,948 97,715 97,715 m 900,000 300,000 <125,523> <137,229> <97,715> 324,477 762,771 202,285 380,573 983,719 300,000 ] 3 67 I CITY OF CARLSBAD Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings Year ended June 30, 1982 Totals Operating revenue: Charges for services Reimbursed expenditures Total operating revenue Operating expenses: Claims expense Total operating expenses Operating income (loss) Non-operating revenues (expenses) Interest revenue Total non-operating revenue (expense) Net income (loss) Retained earnings (deficit) at beginning of year Retained earnings (deficit) at end of year $ 222,236 6,700 $ 228,936 $ 173,459 $ 173,459 55,477 $ 30,532 $ 30,532 86,009 $ <97,715> $ <11,706> General Liability Self -Insurance June 30, June 30, 1982 1981 222,236 6,700 135,306 135,306 <135,306> 9,783 9,783 <125,523> <125,523> 228,936 308,765 97,715 308,765 97,715 <79,829> <97,715> 40,315 40,315 <39,514> <97,715> <137,229> <97,715> See accompanying accountants' report 68 CITY OF CARLSBAD Internal Service Funds Combining Statement of Changes in Financial Position Year ended June 30, 1982 Workers ' Compensation Totals Year Ended General Liability June 30, June 30, Self-Insurance 1982 1981 1 Sources of working capital: Operations: Net Income Contributions from other funds Total sources of working capita Uses of working capital: Loss from operations Net increase in working capital $ $ $ 86, 250, 336, E^SS=3 336, smsssssss 009 000 009 E=S^E3 009 1 " ~ 350, 350, •"^r "--—• i <125, 224, '• — -• 000 000 -— -t-n 523> 477 i—i~^!...a 86 600 686 <125 560 -j ,009 ,000 ,009 ,523> ,486 300, 300, <97, 202, 000 000 715> 285 Elements of net increase (decrease) in working capital: Cash and cash equivalents $ 400,172 Accrued interest receivable 2,974 Estimated claims payable <53,750> Accounts Payable <990> Due to other funds <12,397> Net increase in working capital $ 336,009 279,324 1,249 <56,096> 224,477 679,496 4,223 <109,846> <990> <12,397> 560,486 300,000 <97,715> 202,285 See accompanying accountants' report 69 CITY OF CARLSBAD Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 1982 Redevelopment Agency Fund Assets Total assets Liabilities Total liabilities Balance Balance July 1, 1981 Additions Deductions June 30, 1982 $ -0- $ -0- 52,463 52,463 52,463 52,463 -0- -0- Payroll Deductions Agency Fund Assets Cash and cash equivalents Liabilities Accounts payable Deposits payable Total liabilities $ <10,536>9,757,039 9,486,755 259,748 25,458 <35,994> <10,536> 92,291 9,352,111 9,444,402 115,879 9,058,239 9,174,118 1,870 257,878 259,748 Contractors Deposits Agency Fund Assets Cash and cash equivalents $ 693,721 Liabilities Accounts payable -0- Deposits payable $ 693,721 Total liabilities $ 693,721 See accompanying accountants' report 892,298 1,169,231 416,788 2,412 63,298 65,710 -0- 2,412 342,643 414,376 342,643 416,788 (Continued) 70 CITY OF CARLSBAD Agency Funds Combining Statement of Changes in Assets and Liabilities, continued Year ended June 30, 1982 Balance July 1, 1981 Additions Deductions Balance i June 30, 198* Miscellaneous Deposits Agency Fund As set s Cash and cash equivalent Accrued interest receivable Total assets Liabilities Accounts payable Deposits payable Total liabilities Totals - All Agency Funds Assets Cash and cash equivalents Accrued interest receivable Total assets Liabilities Accounts payable Deposits payable Total liabilities $ 616,326 6,466 $ 622,792 11,170 611,622 622,792 1,246,969 347 1,195,442 6,466 1,247,316 1,201,908 667,853 347 668,200 70,375 675,721 746,096 59,580 641,108 700,688 21,965 646,235 668,200 $ $ $ $ 1,299,511 6,466 1,305,977 36,628 1,269,349 1,305,977 11,896,306 347 11,896,653 165,078 10,091,130 10,256,208 11,851,428 6,466 11,857,894 175,459 10,041,990 10,217,449 1,344,389 347 1,344,736 26,247 1,318,489 1,344,736 1 1 1 1 1 See accompanying accountants' report 71 STATISTICAL SECTION 72 CITY OF CARLSBAD General Expenditures by Function Last Ten Years Fiscal Year 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 Total^' (Memo Only) $3,629,181 3,878,205 4,841,800 5,540,958 6,916,158 8,608,080 9,566,353 10,958,699 13,837,197 14,329,047 General Government 1,073,834 1,158,865 1,463,821 1,660,069 2,280,639 2,767,513 3,314,694 3,112,025 4,547,215 2,849,059 Public Safety 1,031,777 1,269,022 1,458,573 1,561,812 1,869,808 2,592,993 2,634,839 3,058,443 3,407,025 4,888,849 Public Works 1,027,547 821,212 1,196,512 1,443,009 1,523,376 1,981,274 2,314,667 2,495,741 2,868,460 3,062,434 Culture Recreation 347,084 472,965 569,791 725,928 1,095,120 1,122,003 1,161,115 1,599,729 2,261,888 2,732,343 ,,* Debt(1 )Welfare Service 148,939 156,141 153,103 150,140 147,215 144,297 141,038 544,597 148,164 608,009 144,600 650,202 146,160 _ | 1§ •1 A ^/ I 1 The City assumed responsibility for the Carlsbad Housing Office in 1979-80 (2)Includes General, Special Revenue, and Debt Service funds. 73 THIS PAGE INTENTIONALLY LEFT BLANK 74 CITY OF CARLSBAD General Revenue by Source Last Ten Years Fiscal Year 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 Total $3,678,191 4,634,334 5,689,159 6,964,649 8,466,866 10,362,623 9,015,129 12,305,902 14,507,827 16,299,152 Property Taxes 1,393,335 1,899,177 2,375,319 2,894,098 2,923,710 3,484,504 1,633,938 2,615,181 3,344,171 4,193,866 Sales Taxes 540,742 770,466 939,721 1,118,387 1,402,841 1,967,968 2,389,832 2,969,586 3,302,134 3,941,152 Franchise Taxes 29,049 42,836 54,818 78,254 96,818 111,271 141,185 175,257 250,101 288,956 Other Taxes 349,061 430,869 552,885 731,747 1,064,015 1,202,799 1,451,795 1,526,547 1,615,950 1,347,202 i 1rf w j M|"| ]Ml ,1 ^J Includes General, Special Revenue, and Debt Service funds. ] 75 m t* •t Hi m * m> M m m ^ m • m to n M Business Licenses 74,091 78,573 88,675 111,253 141,050 151,768 186,845 242,342 247,798 258,663 Other Licenses 369,860 447,970 322,203 448,814 908,521 909,201 626,749 829,623 1,048,332 537,476 Intergov- ernmental 504,794 343,294 459,473 566,129 547,477 873,544 655,588 1,316,172 1,133,947 1,875,243 Charges for Services 418,932 395,410 546,670 643,995 859,008 862,138 851,465 1,168,326 1,737,238 1,986,800 Fines and Forfeits 47,391 55,116 84,279 100,859 139,480 125,964 129,504 152,171 230,684 260,498 Interest 30,871 138,148 223,751 214,346 294,892 489,638 817,604 1,143,121 1,472,681 1,533,333 Miscel- laneous 8,065 27,473 41,365 56,765 89,054 183,828 130,620 167,576 124,791 75,963 76 CITY OF CARLSBAD x J Ratio General Bonded Debt to Assessed Valuation and Net Bonded Debt Per Capita *| J Last Ten Fiscal Years 3Fiscal 1972 - 1973 - 1974 - 1975 - 1976 - 1977 - 1978 - 1979 - 1980 - 1981 - Year 73 74 75 76 77 78 79 80 81 82 Net Assessed Valuation $ 64,041,973 94,819,185 121,045,109 150,147,591 156,629,855 196,697,879 245,296,620 312,538,738 361,068,983 1,687,082,037(1) Outstanding Principal $2,010,000 1,935,000 1,850,000 1,765,000 1,680,000 1,595,000 1,510,000 1,425,000 1,245,000 1,145,000 Percent of Total Valuation 3.0 % 1.9 1.5 1.1 1.0 0.8 0.6 0.4 0.3 0.06 Per Capita Debt $118.91 106.63 92.61 84.17 69.59 57.07 47.04 40.20 34.97 31.65 Popu 1st ion 16,904 18,1479 19,977 20,970 24,1439 27,946 32,100 35,4483 35,606 36,172 (1) In 1981-82, the County of San Diego began providing assessed valuation data based on full market vaue. The 1981-82 value may be converted to the basis used between 1972-73 and 1980-81 by multiplying by 25%. J 77 PI M "" CITY OF CARLSBAD ** Computation of Legal Debt Margin in June 30, 1982 25% of Assessed Valuation $ 421,770,509 Debt Limit 15% of Assessed Valuation 63,265,576 Amount of Debt Applicable to Debt Limit: Bonded Debt $ 1,145,000 Capitalized Leases 893,901 Total Amount of Debt Applicable to Debt Limit 2,038,901 LEGAL DEBT MARGIN 61,226,675 Percent of Debt Limit 3.3% Ml m m m m m m 78 Ratios to Assessed Valuation: Direct Debt ($4,100,000) 0.24% Total Debt 1.35% (1)Gross assessed value provided by County of San Diego, Auditor and Controller. 3 CITY OF CARLSBAD Schedule of Direct and Overlaping Bonded Debt June 30, 1982 (1)1981-82 Assessed Valuation: $1,735,841,237 Direct and Overlapping Bonded Debt: San Diego County Building Authorities San Diego County Water Authority Metropolitan Water District Oceanside-Carlsbad Community College District Carlsbad Unified School District (various issues) 84, Carlsbad Unified School District Authority San Marcos Unified School District San Dieguito Union High School District Percent Applicable 3.584% 3.734 0.572 25.306 175-91.293 91.240 1-7.270 (various issues) 9.602-13.878 Encinitas Union School District (various issues) 24.504-32.582 Other School districts Various Tri-City Hospital District 29.287 North San Diego Hospital District & Authority 0.430 Leucadia County Water District 51.957 San Marcos County Water & Improvement Districts #1, #2, #6 1.139-5.270 Costa Real (Carlsbad) Municipal Water Dist.S Improvement Districts #1, #2, #3, #4 88.023-95.849 Olivenhain Municipal Water District Improvement District #1 32.539 City of Carlsbad 100. City of Carlsbad Building Authority 100. Encinitas Union School District Authority 24.504 Total Gross Direct & Overlapping Bonded Debt Debt as of 6/30/82 $ 4,855,245 1,641,280 2,769,257 189,795 1,275,875 2,271,876 947,962 606,636 523,134 27,053 820,036 85,248 542,951 88,129 1,561,334 694,708 1,145,000 2,955,000 477,828 $23,478,347 I 1 3 3 J 3 3 79 pi CITY OF CARLSBAD Ratio of Annual Debt Service m For General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years M pt Mi P m P P ' m W p m Fiscal Year 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 Principal $ 75,000 85,000 85,000 85,000 85,000 85,000 85,000 95,000 95,000 100,000 Interest $73,939 71,141 68,108 65,140 62,215 59,297 56,038 53,164 49,600 46,160 Debt Total , Service $148,939 156,141 153,103 150,140 147,215 144,297 141,038 148,164 144,600 146,160 Total ., . Ratio of Debt s General Service to General Expenditures Expenditures % $ 3,629,181 3,878,205 4,841,800 5,540,958 6,916,158 8,608,080 9,566,353 10,958,699 13,837,197 14,329,047 4.1% 4.0 3.2 2.7 2.1 1.7 1.5 1.4 1.0 1.0 Debt Service Requirement on General Obligation Bonds Comprised of 1962 Sewer Bonds Series A, B, C; and 1966 Library Bonds (2)Includes General, Special Revenue, and Debt Service Funds 80 CITY OF CARLSBAD Revenue Bond Coverage Water Bonds Last Ten Fiscal Years Net Revenue Fiscal Year 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 $ 1 1 1 1 1 1 1 1 2 Gross Revenue 832,506 ,051,459 ,112,969 ,257,334 ,271,353 ,388,195 ,525,143 ,806,817 ,997,591 ,084,262 Direct Operating Expenses 567,964 594,649 727,981 785,261 897,240 1,023,717 1,269,836 1,333,560 1,655,756 1,620,519 Available for Debt Service 264 456 384 472 374 364 255 473 341 463 ,542 ,810 ,988 ,073 ,113 ,478 ,307 ,257 ,835 ,743 Debt Principal 65 70 70 75 60 85 90 95 105 215 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 Service Requirements Interest Total Coverage 112,975 108,958 105,096 100,972 96,362 91,245 85,603 80,377 74,985 69,715 177, 178, 175, 175, 176, 176, 175, 175, 179, 284, 975 958 096 972 362 245 603 377 985 715 1.49% 2.55 2.20 2.68 2.12 2.07 1.45 2.70 1.90 1.63 I J 3 3 3 ] 3 81 CITY OF CARLSBAD Demographic Statistics m m m u m m F M -ta P" ta W^ IH *• P Ml •1 •M m m Year 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1985 (estimate) 1995 (estimate) 2000 (estimate) (DoSource County City Population /.x Population Square Percent County Percent Miles Population Change Population of County 21 25 28 28 28 28 29 29 29 29 .4 .6 .3 .6 .7 .7 .1 .4 .7 .8 16 18 19 20 24 27 32 35 35 36 51 84 93 ,904 ,147 ,977 ,970 ,143 ,946 ,100 ,448 ,606 ,172 ,641 ,147 ,891 - County Data Base Future Population 7. 7. 10. 5. 15. 15. 14. 10. 0. 1. 42. 62. 11. , San Diego Estimate Not 5% 1,502,067 4 1,544,600 1 1,559,505 0 1,590,700 1 1,656,800 8 1,694,800 9 1,767,450 4 1,808,200 4 1,899,900 6 1,924,700 8 (2) 9 (2) 6 (2) County Available 1.1% 1.2 1.3 1.3 1.5 1.6 1.8 2.0 1.9 1.9 82 CITY OF CARLSBAD Schedule of Assessed Valuation Last Ten Fiscal Years Less Secured Unsecured Property Total Fiscal Year Property Property Exemptions Valuation 1972 - 73 $ 64,009,249 $ 3,822,270 $1,490,660 $ 66,340,859 1973 - 74 97,974,201 4,125,796 1,394,280 100,705,717 1974 - 75 123,890,815 5,056,766 1,441,339 127,506,242 1975 - 76 154,000,994 5,428,247 1,729,582 157,699,699 1976 - 77 158,745,285 7,381,254 1,149,614 164,976,025 1977 - 78 200,426,225 9,115,516 2,189,620 207,352,121 1978 - 79 249,889,799 10,823,286 2,171,421 258,541,664 1979 - 80 318,374,958 12,937,939 2,354,961 328,957,936 1980 - 81 366,867,584 8,877,200 2,578,751 373,166,033 1981 - 82(1)1,700,974,823 43,077,175 8,210,761 1,735,841,237 (1) In 1981-82 the County of San Diego began providing assessed valuation data based on full market value. The 1981-82 values may be converted to the basis used between 1972-73 and 1980-81 by multiplying by 25%. 83 pi m m Business Net Inventory Homeowner's Taxable Exemptions Exemptions Value 664,636 1,634,250 64,041,973 1,116,782 4,769,750 94,819,185 1,368,033 5,093,100 121,045,109 1,913,518 5,638,550 150,147,591 2,304,270 6,042,800 156,629,855 3,170,192 7,484,050 196,697,879 4,160,094 9,084,950 245,296,620 5,207,298 11,211,900 312,538,739 12,097,050 361,068,983 48,759,200 1,687,082,037 84 CITY OF CARLSBAD Construction and Business Activity Last Ten Years Fiscal Year 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 Building Permits Issued $214,720 232,598 110,952 190,492 613,427 520,603 119,224 181,839 328,453 271,542 Percent Change 120.2% 8.3 <52.3> 71.7 222.0 <15.1> <77.1> 52.5 80.6 <17.3> QV Business Estimated Licenses Valuation Issued $ 74,091 78,573 88,675 111,253 141,050 151,768 $23,700,000 186,845 41,900,000 242,342 85,900,000 247,798 52,700,263 258,663 Percent Change 36.9% 6.0 12.9 25.5 26.8 7.6 23.1 29.7 2.3 4.4 1 (1)Information for fiscal year 1972-73 through 1977-78 is not available. v 85 m m CITY OF CARLSBAD Schedule of Principal Employers 1981-82 Firm M PH m Manufacturing; Hughes Aircraft Company, Industrial Products Division Burroughs Corporation Oak Industries Summa Corporation Hughes Helicopter Division Sargent Industries Eaton-Leonard Corporation Dyna Med Inc. Beckman Instruments Magnedyne Inc. Anthony Industries (Pool Division) Non-manufacturing: Plaza Camino Real La Costa Hotel & Spa Tri-City Hospital Mira Costa college Car Country Auto Dealers Frazee Flowers San Diego Gas & Electric, Encina Army & Navy Academy Number of Product/Service Employees Electronic components 1,100 Computer components 700 Electronic components 400 Assembly/testing 300 Industrial seals 280 Bending machines 220 Emergency medical products 160 Microbics operation 150 Electronic motors 90 Swimmit g nools & related equipment 75 Shopping center 1,500 Hotel & health spa 1,300 District hospital 1,200 Community college 520 Car dealers All major agencies 460 Flower growing and processing 450 Power generation 150 Private junior/senior high school 100 Source: City of Carlsbad Chamber of Commerce 86 CITY OF CARLSBAD Miscellaneous Statistical Information Date of Incorporation Type of City Form of Government Area Population July 16, 1952 General Law Council/Manager 29.8 sq. miles 36,172 Number of Street Lights 2,454 Fire Protection: Number of Stations Number of Firefighters & Officers 3 48 Police Protection: Number of Stations Number of Sworn Police Officers Recreation and Culture: Number of Parks Number of Libraries Number of Volumes Total Number of City Employees 1 53 22 1 140,000 317 I I 3 3 I I 87 BUILDING AUTHORITY OF THE CITY OF CARLSBAD FINANCIAL STATEMENTS WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS June 30, 1982 ' ; BUILDING AUTHORITY OF THE CITY OF CARLSBAD Table of Contents June 30, 1982 ^: '•'••- • ••'••'.' ;": ' Page Number Accountants' Report . 1 Combined Balance Sheet - All Governmental Fund Types and Account Groups ,.2 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types 3 Statement of Changes in~Bonds Payable "" 4 Notes to Financial Statements " 5-7 Combining Balance ^heet - All" Debt Service Funds 8 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - All Debt Service Funds 9 c ELLIS C. OICHL. C.P.A. 11925 19561 BRVN B. EVANS, C PA. PHILIP H. HOLTKAMP. C.P.A. WIN O. PETERS. C.P.A. OONALO H. PETERSON. C.PA. DONALD C. CALLAHAN. C.P.A. l_ PETER SCHEREH. C.P.A. RODNEY K. McOANIEL. C.PA. RALPH H. WCINTRAUB. C.P.A. DiEHL, EVANS AND COMPANY . A PARTNERSHIP Or ACCOUNTANCY COHPORATIONS "~ CERTIFIED PUBLIC ACCOUNTANTS ISO weST WOODWARD AVENUE CSCONDIOO. CALIFORNIA 9SO25 (714) 741-31*1 August 10, 1982 OTHER orriccs AT: ROOSEVELT STREET CARLSBAD. CALIFORNIA IBIO NORTH BUSH STREET SANTA ANA, CALIFORNIA ACCOUNTANTS' REPORT BOARD OF DIRECTORS BUILDING AUTHORITY OF THE CITY OF CARLSBAD CARLSBAD, CALIFORNIA We have examined the combined financial statements of the Building Authority of the City of Carlsbad as of and for the year ended June 30, 1982, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements referred to above present fairly the financial position of the Building Authority of the City of Carlsbad and the results of its operations and changes in fund balances for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the Building Authority of the City of Carlsbad. The information has been subjected to the auditing procedures applied in the examination of the combined financial statements, and in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. BUILDING AUTHORITY OF THE CITY OF CARLSBAD COMBINED BALANCE SHEET ALL GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS June 30. 1982 ASSETS: Cash and savings held by trustee U.S. Government securities, at cost, (approximates market) Due fro* other funds Lease payments receivable (Note Ib) Unearned lease finance charges TOTAL ASSETS Governmental Fund Revenue Working Capital Types Debt Service Account Group Lease Payments Receivable Payable Total (Memorandum 1982 Only) 1981 $ 4,425 $ 57 $ 4,779 32,836 1,443 18,763 33,180 $ 9,261 $ 10,081 51,599 79,181 36,420 $ iiai.,100 = 381,100 418,500 .-(181,100 K- -(101,100) (118,500) $ 39,058 $ 1,500 $ 56,722 $ 280,000 $ 377,280 $ 389,262 LIABILITIES: Revenue bonds payable (Note 3) Due to other funds Deferred revenue TOTAL LIABILITIES LIABILITIES AND FUND BALANCE 34,623 34,623 $ 280,000 $ 280,000 $ 300,000 1,797 36,420 36,000 1,797 280,000 316,420 336,000 FUND BALANCE (DEFICIT) (Note 4): Reserve for payment of bond principal and interest Reserve for working capital Unreserved TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE $ 1,500 4,435 54,925 54,925 1,500 4,435 60,860 56,125 (2,863) 53,2624,435 1,500 54,925 $ 39,058 $ 1,500 $ 56,722 $ 280.000 $ 377,280 $ 389,262 c See accompanying accountants' report and notes to financial statements. 2 BUILDING AUTHORITY OF THE CITY OF CARLSBAD COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES For the fiscal year ended June 30, 1982 Totals REVENUE: lease payments - finance charges Interest on investments TOTAL REVENUE EXPENDITURES: Interest Administrative expense TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Lease pa/tents received - principal Bonds paid . Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) ,OF REVENUE AND OTHER SOURCES OVER EXPENDI- TURES AND OTHER USES FUND BALANCE (DEFICIT), July 1 FUND BALANCE, June 30 Revenue X $ 17,400 4,155 21,555 21,555 18,600 4,413 (34,623) (11,610) 9,945 (5,510) $ 4,435 Working Capital $ 25 25 793 793 (768) 1,443 1,443 675 825 $ 1,500 Debt Service $ 5,611 5,611 17,400 17,400 (11,789) (20,000) 33,180 (4,413) 8,767 (3,022) 57,947 $ 54,925 (Memorandum 1982 I 17,400 $ 9,791 27,191 17,400 793 18,193 8,998 18,600 (20,000) 39,036 (39,036) (1,400) 7,598 53,262 $ 60,860 $ Only) 1981 18,600 7,310 25,910 18,600 734 19,334 6,576 17,400 (20,000) 71,555 (71,555) (2,600) 3,976 49,286 53,262 S«t accompanying accountants' report and notes to financial statements. 3 BUILDING AUTHORITY OF THE CITY OF CARLSBAD STATEMENT OF CHANGES IN BONDS PAYABLE For the fiscal year ended June 30, 1982 BALANCE AT JULY 1. 1981 PlyMntt Mdt IALANCC AT JUNE 30. 1982 $ 300,000 20,000 $ 280,000 - c - • >I 5tt accompanying accountants' report and notes to financial statements. : • ' . ..•.,-... 4 * BUILDING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS . June 30, 1982 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. The financial statements have been prepared on the modified accrual basis. b. The leasing of the facilities to the City has been accounted for as a direct finance lease whereby the long-term lease has been treated as a sale of the facilities to the City and the lease payments receiv- able represent the selling price. Finance charges included in the lease payments are taken into income each year as earned on a declin- ing balance method over the life of the lease. This method hass the effect of recording income in an amount that equals bond interest expense each year . . 2. HISTORY AND ORGANIZATION: The Building Authority of the City of Carlsbad was organized October 1, 1967 under a joint exercise of powers agreement between the City of Carlsbad and the County of San Diego for the purpose of financing and constructing a civic center building for lease to the City of Carlsbad. Any net earnings or net assets of the Authority after providing for all debts and obligations of the Authority are distributable upon dissolution to only the City of Carlsbad. The Authority leased the site from the City of Carlsbad on November 1, 1967 for the sum of $ 1 which represents the rent for the full term of the lease. The site lease will terminate at the end of the sublease. On November 1, 1967 the Authority entered into a sublease with the City of Carlsbad under the terms of which the Authority agreed to construct the above-mentioned civic center facilities and lease them back to the City for annual rental payments of $ 36, 000 r payable in advance on July 1. The leaseback will terminate on October 31, 2007 or such earlier time when all debts of the Authority are paid in full. The City also agreed to pay as additional rent all takes, assessments, insurance premiums and administrative costs of the Authority. • ; '~ . .; Y • :. •'•-•..•...„..-.. 3. REVENUE BONDS PAYABLE: ' . . To provide funds for the construction of the City Hall, the Authority sold $ 460,000 principal amount of revenue bonds with interest at 6%. The bonds were issued under a trust indenture with Crocker National Bank as Trustee. The bonds mature serially from December 15, 1968 to December 15, 1992 in amounts ranging from $ 5,000 to $ 35,000 with $ 20,000 maturing in 1982-83. •. . . See accompanying accountants' report. BUILDING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1982 3. REVENUE BONDS PAYABLE (Continued): " Bonds maturing on or after December 15, 1979 are subject to call in whole or in part at the option of the Authority at prices ranging from 100.25% to 104% of the principal amount of the bonds. 4. FUND BALANCES: In accordance with the terms of the indenture, cash balances of the follow- ing funds are restricted to be used for specified purposes as follows: Interest and Retirement Funds - on or before August 1 of each year, a sum sufficient to pay twelve months' interest due on the next succeeding December 15 and June 15 as well as the amount of principal maturing on the next succeeding December 15. Reserve Fund - an amount at least equal to one half maximum annual debt service ($ 18,725) shall be maintained at all times. Any excess shall on June 30 and December 30 of each year be transferred to the Revenue Fund. Moneys in this fund may be used to pay the principal and/or interest on the last maturity of bonds outstanding. Working Capital Fund - an amount necessary to pay administrative expenses and maintain a $ 1,500 balance in this fund. Revenue Fund - amounts accumulated in this fund after meeting requirements of the interest and redemption, reserve and working capital funds shall be declared surplus and may be used to reimburse the City for rent previ- ously paid. ' 5. INSURANCE: Insurance coverage maintained by the City of Carlsbad with the Authority listed as additional insured at June 30, 1982 includes: Type of Coverage All risk including valuable papers and rental Equipment floater Excess liability and workers compensation Earthquake Boiler and machinery Comprehensive crime General and auto liability See accompanying accountants' report. Amount $ 10,241,525 455,000 24,000,000 300,000 1,000,000 500,000 1,000,000 Term 12/1/81 to 12/1/84 12/1/81 to 12/1/84 7/1/81 to 7/1/82 9/22/81 to 9/22/82 12/20/81 to 12/20/84 4/16/82 to 4/16/83 7/1/81 to 7/1/84 BUILDING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1982 a 1 v 6. COMPARATIVE DATA: Comparative total data for the prior year have been presented in the ac- companying financial statements in order to provide an understanding of changes in the Authority's financial position and operations. However, comparative (i.e. presentation of prior year totals by fund type) data have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. TOTAL COLUMNS: Total columns on the Combined Statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in fund balances in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggrega- tion of this data. . See accompanying accountants' report. SUPPLEMENTARY INFORMATION BUILDING AUTHORITY OF THE CITY OF CARLSBAD COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS June 30, 1982 Totals ASSHS C««H ««d livings held by trustee U.S. Oovernatnt securities, tt cost Out (re* fi«v«nu« Fund TOTAL ASSETS Interest $ 1,636 14,564 $ 16,200 Retirement $ 1,384 18,616 $ 20,000 Reserve $ 1,759 18,763 $ 20,522 1982 $ 4,779 18,763 33,180 $ 56,722 1981 $ 6,643 51,304 $ 57,947 UASUITICS AND FUND BALANCE Out to othtr funds TOTAL LIABILITIES $ 1,797 '$ 1,797 1,797 1,797 WO BALANCE: fUttrvtd for payment of bond principal and interest Unr«ttrv«d - * TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE $ 16,200 $ 20,000 18,725 54,925 $ 56,125 • . 1,822 16.200 20.000 18,725 54,925 57,947 $ 16,200 $ 20,000 $ 20,522 $ 56,722 $ 57,947 tr S« icec.p.nylng notes to financial statements. BUILDING AUTHORITY OF THE CITY OF CARLSBAD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL DEBT SERVICE FUNDS For the fiscal year ended June 30, 1982 Interest Retirement Reserve Totals 1982 1981 tfldtfi « lnv*tt«tnt$ TOIIL DCVCRUE $ 1,626 $ 1,374 $ 2,611 $ 5.611 $ 4,385 1,626 1,374 2,611 5,611 4,385 lM«rt»t 17,400 17,400 18,600 CJtCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTMEft riMNCIHG SOURCES (USES): Bondl p«id Optrttlng triniftrs in Op«r*tlng trtntfers out TOTAL OTHER FINANCING SOURCES (USES) (15,774)1,374 2,611 (11,789) (14,215) 14,564 14,564 (20,000) 18,616 (1,384) (20,000) 33,180 (4,413) (4,413) (4,413) 8,767 (20,000) 71,622 (3,570) 48,052 EXCESS (DEFICIENCY) OF REVENUE AND OTHER SOURCES OVER EXPEN- DITURES AND OTHER USES '(1,210)(10) (1,802) (3,022) 33,837 ru*0 BALANCE. July 1 BALANCE. June 30 17,410 20,010 20,527 57,947 24,110 $ 16,200 $ 20,000 $ 18,725 $ 54,925 $ 57,947 S«« tccoipanying notes to financial statements. PARKING AUTHORITY OF THE CITY OF CARLSBAD FINANCIAL STATEMENTS WITH-REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS June 30, 1982 PARKING AUTHORITY OF THE CITY OF CARLSBAD Table of Contents June 30, 1982 •. Page Number Accountants ' Report 1 Combined Balance Sheet - All Governmental Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types 3 Notes to Financial Statements 4-7 Combining Balance Sheet - All Governmental Fund Types 8 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types 9 ELLIS C. OIEHL. C.P.A. (^5-19561 BRYN B. EVANS, C.P.A. PHILIP H. HOLTKAMP, C.P.A. WIN O. PETERS. C.P.A. DONALD H. PETERSON. C.P.A. DONALD E. CALLAMAN, C.P.A, L. PETER SCMERER, C.P.A. RODNEY K. MCDAMEL. C.P.A. RALPH H. WEINTRAUB. C.P.A. DIEHL, EVANS AND COMPANY A PARTNERSHIP Of ACCO'JN'ASCY CORPORATIONS CERTIFIED PUBLIC ACCOUNTANTS I2O WEST WOODWARD AVENUE ESCONDIDO, CALIFORNIA 93OE5 (714) 7«i-3i4l August 10, 1982 OTHER OFFICES AT: 2965 ROOSEVELT STREET CARLSBAD, CALIFORNIA 19IO NORTH BUSM STREET SANTA ANA, CALIFORNIA ACCOUNTANTS' REPORT BOARD OF DIRECTORS PARKING AUTHORITY OF THE CITY OF CARLSBAD CARLSBAD, CALIFORNIA ; We have examined the combined financial statements of the Parking ; Authority of the City of Carlsbad as of and for the year ended June 30, 1982, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing • procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements referred to above V, present fairly the financial position of the Parking Authority of the City of Carlsbad and the results of its operations and changes in fund balances for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preced- ing year. ; Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the Parking Authority of the City of Carlsbad. The information has been subjected to the auditing procedures applied in the examination of the combined financial statements, and in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. PARKING AUTHORITY OF THE CITY OF CARLSBAD COMBINED BALANCE SHEET ALL GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS June 30, 1982 ASSETS: Cash and savings held by trustee Time certificates of deposit U.S. Government securities, at amortized cost Accrued interest receivable Due from other funds Lease payments receivable (Note Ib) Unearned lease finance charges (Note Ib) TOTAL ASSETS Governmental Fund Types Bond Working Service Capital Reserve $ 45,178 $ 3,000 $ 9,072 676,000 226,752 24,169 16,601 28,425 $ 773,772 $ 3,000 $ 252, 425' Account Group Lease Receivable And Bonds Payable $ 4,784,931 (2,109,931) $ 2,675,000 Totals (Memorandum Only) $ 57,250 676,000 226,752 40,770 28,425 4,784,931 (2,109,931) $ 3,704,197 LIABILITIES AND FUND BALANCES LIABILITIES: Revenue bonds payable (Note 3) Due to other funds TOTAL LIABILITIES FUND BALANCE (Note 4): Reserve for payment of bond principal and interest Reserve for working capital Unreserved TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE $ 225,756 548,016 773,772 $ 3,000 3,000 $ 28,425 28,425 224,000 224,000 $ 2,675,000 2,675,000 See accompanying accountants' report and notes to financial statements. 2 $ 2,675,000 28,425 2,703,425 449,756 3,000 548,'016 1,000,772 $ 773,772 $ 3,000 $ 252,425 $ 2,675,000 $ 3,704,197 PARKING AUTHORITY OF THE CITY OF CARLSBAD COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES For the fiscal year ended June 30, 1982 REVENUE: Lease payments - finance charges Less amount repaid to the City of Carlsbad Interest on investments Contribution from bond service fund TOTAL REVENUE EXPENDITURES: Interest Administrative expense Contributions to working capital 1 fund TOTAL EXPENDITURES EXCESS OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Lease payments received - principal Bonds paid Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (OSES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE, July 1 FUND BALANCE, June 30 Bond Service $ 196,262 (100,478) 116,906 212.690 196,262 3,960 200,222 12,468 116,153 (50,000) 29,230 95,383 Working Capital Totals (Memorandum Reserve Only) 107,851 665,921 $ 773,772 $ 3,960 3,960 3,006 3,006 954 954 2,046 $ 3,000 $ (21,645) 40,771 19,126 19,126 (29.230) (29.230) (10,104) 234,104 $ 196,262 (122,123) 157,677 3,960 235,776 196,262 3,006 3,960 203,228 32,548 116,153 (50,000) 29,230 (29,230) 66,153 98,701 902,071 $ 224,000 $ 1,000,772 See accompanying accountants' report and notes to financial statements. 3 PARKING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS June 30, 1982 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. The financial statements have been prepared on the modified accrual basis. b. The lease of the facilities to the City has been accounted for as a direct financing lease whereby the long-term lease has been treated as a sale of the facilities to the City and the lease payments receivable represent the selling price. Finance charges included in the lease payments are taken into income each year as earned on a declining balance method over the life of the lease. This method has the effect of recording income in an amount that equals bond interest expense each year. c. Investments are stated at cost, which approximates market value. 2. HISTORY AND ORGANIZATION: The Authority was created pursuant to the Parking Law of 1949 and was authorized by Resolution 1264 by the City Council on April 19, 1966. A five member commission appointed by the City Council, governs the Authority. Leases were executed by the City of Carlsbad under which the City agreed to pay $ 138,400 and $ 174,000 annually for the original lease and a 1981 expansion, in quarterly payments due on the first day of each calendar quarter. The leases commenced October 21, 1969 and February 1, 1981, and terminate on the date of retirement of the revenue bonds. 3. BONDS PAYABLE: The following is a summary of bonds payable transactions of the Parking Authority of the City of Carlsbad for the year ended June 30, 1982: Parking Revenue Bonds 1969 1981 Total Revenue bonds payable, June 30, 1981 $ 1,225,000 $ 1,500,000 $ 2,725,000 Bonds retired ' 50,000 50,000 Revenue bonds payable, June 30, 1982 $ 1,175,000 $ 1,500,000 $ 2,675,000 See accompanying accountants' report. 4 PARKING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS ***" (Continued) June 30, 1982 3. BONDS PAYABLE (Continued): To provide financing for public parking facilities and the expansion thereof, the Authority sold $ 1,535,000 and $ 1,500,000 principal amount of revenue bonds with interest ranging from 6.2% to 6.4% and 8% respectively. The bonds were issued under a trust indenture with Security Pacific National Bank as trustee. The bonds mature as follows: 1969 Parking Revenue Bonds Serially from October 1, 1971 to October 1, 1995 in amounts ranging from $ 10,000 to $ 125,000 with $ 50,000 maturing in 1982-83. Bonds maturing on or after October 1, 1980 are subject to call in whole or in part at the option of the Authority at prices ranging from 100.25% to 105% of the principal amount of the bonds. 1981 Parking Revenue Bonds Serially from February 1, 1984 to February 1, 2001 in amounts ranging from $ 30,000 to $ 150,000. Bonds maturing on or after February 1, '1991 are subject to call in whole or in part at the option of the Authority at prices ranging from 100.25% to 102% of the principal amount of the bonds. 4. DESCRIPTION OF FUNDS: BOND SERVICE FUND 1969 Parking Revenue Bonds * All pledged revenues received by the Authority shall be desposited in this fund and shall be used only for the purpose of paying the principal and interest on the bonds. In accordance with the bond indenture, any moneys in excess of the amount required to pay the principal and interest coming due on or before the next following October 1 and an amount equal to the base annual rental payment shall be transferred, if necessary, to the Reserve Fund to maintain said : fund at $ 68,000. Any moneys in excess of the foregoing requirements i may be used to reimburse the City for rental payments previously paid. See accompanying accountants' report. I PARKING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS f: (Continued) I" June 30, 1982 4. DESCRIPTION OF FUNDS (Continued): I BOND SERVICE FUND (Continued) ' 1981 Parking Revenue Bonds All pledged revenues received by the Authority shall be deposited in this fund and shall be used only for the purpose of paying the principal and interest on the bonds. In accordance with the bond indenture on any February 1 moneys in excess of the amount required to pay principal and interest on the bonds then due will be transferred, if necessary, to the Reserve Fund to maintain said fund at $ 156,000, and if necessary, to the Working Capital Fund to maintain said fund at $ 1,500. Any moneys in excess of the foregoing requirements will be used to reimburse the City for rental payments previously paid. In accordance with this provision, $ 122,123 was refunded to the City of Carlsbad during the year. WORKING CAPITAL FUND 1969 Parking Revenue Bonds All payments for maintenance and operation, taxes, insurance and administrative expenses are paid from this fund. The City, pursuant to the lease agreement, shall pay the Treasurer of the Authority an amount sufficient to cover the foregoing obligations and to maintain a f $ 1,500 balance in this fund. 1981 Parking Revenue Bonds All payments for maintenance and operation, taxes, insurance and administrative expenses are paid from this fund. Amounts necessary to maintain this fund at $ 1,500 shall be transferred from the Bond Service Fund. RESERVE FUND 1969 Parking Revenue Bonds | j $ 68,000 was set aside from the proceeds of the sale of bonds and ; deposited into the Reserve Fund. Moneys in this fund may be used to pay the principal and/or interest on the last maturity of bonds outstanding. Section 16 of the indenture provides that moneys in | excess of $ 68,000 shall be transferred to the Bond Service Fund. fC" I See accompanying accountants' report. [i eI i . . ' . • PARKING AUTHORITY OF THE CITY OF CARLSBAD V" NOTES TO FINANCIAL STATEMENTS | (Continued) f. June 30, 1982 4. DESCRIPTION OF FUNDS (Continued): RESERVED FUND (Continued) 1981 Parking Revenue Bonds $ 156,000 was set aside from the proceeds of the sale of bonds and I' deposited into the reserve fund. Moneys in this fund may be used to ( pay the principal and/or interest on the last maturity of bonds f outstanding. Section 16 of the indenture provides that moneys in ? excess of $ 156,000 shall be transferred to the Bond Service Fund. i | 5. TOTAL COLUMNS: f ; Total columns on the Combined Statements are captioned Memorandum Only f to indicate that they are presented only to facilitate financial analy- j sis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally * accepted accounting principles. Neither is such data comparable to a | consolidation. Interfund eliminations have not been made in the aggrega- tion of this data. See accompanying accountants' report. SUPPLEMENTARY INFORMATION •SSETS: Cash asd investments held by trustee .Ti«e certificates of deposit B.S. Sovermeit securities, at a»arti?ed cost »ccrt«d interest receivable C**e frsa other funds TOTAL »SS£TS UA51S.ni.ES: 0-je to other funds FM3 9ALAIC.E (note *): Reserve for payient of bond principal and interest Reserve fcr working capital 'O'AL full!) BALANCE CTU LIH8HITIES •M FIIIO 9AU»CE MWCMS MTHORITY OF THE CITY OF CARISBAD COHBI««6 BALAUCE SHEET HI 60VESHIIEIITAI FllKO TYPES June 30, 1982 BOIIO SERVICE Finn PARKINS R£VE*U£ BONDS ^»81__ Totals * 286 $ 44,892 676,000 225,756 153.873 kORKIKG CAPITAL FUXD PARKING REVENUE BONOS 1969 1981 Totals i «,178 676,000 L500 1.500 * 3,000 24,169 28,4258,981 < 53.873 1773.772 $ 1.500 $ 1,500 t 3.000 LIABILITIES AND FUHD BALANCE « 773.772 * 1.500 } l.soo «. 3i000 ^i522 _ 1.500 3.000 '•50° 11.500 J 3i000 RESERVE FUIID PARKING REVENUE BONDS _ 1981 T.t.ls '1.344 H5.408 228,752 M7° "."I 16,601 1184.981 $252.425 j 8.981 J 28,425 68,000 156,000 224,000 68-"00 _ 156.OOP _2?t,ooo -87-4^ < 164.981 j 252.425 V PARKING AUTHORITY OF THE CITY OF CARLSBAD CONBININ6 STATEREKT OF REVENUES, EXPENDITURES ADO CHANGES III FUND BALANCE ALL GOVERNMENTAL FUND TYPES For the fiscal year ended June 30, 1982 BOND SERVICE FUND PARKING REVENUE BONDS 1969 1961 Totals HOOKING CAPITAL FUND PARKING REVENUE BONDS 1969 1981 Totals RESERVE FUND PARKING REVENUE BONDS 1969 1981 Totals REVENUE: lease payments - finance charges less aacunt repaid to City of Carlsbad Interest incoie Contribution fro* bond service fund TOTAL REVENUE EXPENDITURES: Interest Administrative expense Contribution to »orking capital fun<i TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER F!»«NCIN6 SOURCES (USES): lease payments received - principal 53«ds paid Operating transfers in Operatinj transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES ANB OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUS0 BALANCE, July I FUND BALANCE, June 30 $ 76,262 J 120,000 $ 196,262 (100,478) (100,478) 104,358 12,548 116,906 180.620 32,387 Set accompanying notes to financial statements. 32,070 212.690 62.996 95.383 134.285 (26,434) 107,851 565.614 80.307 665,921 j 719.899 $ 53.873 J 773,772 V t 2,460 $ 1.500 t 3.960 2,460 1,500 3.960 3.006 76.262 2.460 78.722 101,898 62,138 (50.000) 20,249 120,000 1,500 121,500 (89,430) 54,015 8,981 196,262 • 3,960 200,222 12,468 116,153 (50,000) 29,230 1,506 1.500 1,506 1,500 954 954 546 1.500 3,006 954 954 2,046 t 1.500 t 1.500 » 3.000 $ (21,645) $ (21,645) $ 10,145 30,626 40,771 10.145 10.145 8,981 8.981 19,126 19.126 (10,104) (10.104) 78,104 156.000 234.104 $ 68.000 t 156.000 $ 224.000 CITY OF CARLSBAD REPORT OF EXAMINATION OF THE LOCAL TRANSPORTATION FUND FOR THE FISCAL YEARS ENDED JUNE 30, 1981 AND 1982 KENNETH CORY STATE CONTROLLER DIVISION OF LOCAL GOVERNNENT FISCAL AFFAIR; BUREAU OF STREETS AND ROADS CITY OF CARLSBAD TABLE OF CONTENTS JUNE 30, 1582 Auditor's Report 1 Comparative Balance Sheets 3 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 4 Supplemental Schedule - Schedule of Transportation Development Act Allocations for Specific Projects 5 Footnotes to the Financial Statements 6 KENNETH CORY of ifye jiiaie nf Californta SACRAMENTO, CALIFORNIA S58O5 October 8, 1982 San Diego Association of Governments San Diego, California Dear Board Members: We have examined the balance sheets of the Local Transportation Fund of the City of Carlsbad as of June 30, 1981 and June 30, 1982, and the related statement of revenues and expenditures and changes in fund balance for the years then ended. Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the Local Transportation Fund of the City of Carlsbad at June 30, 1982 and June 30, 1981 and the results of operation of such fund for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. Our examination was also made for the purposes of determining compliance with the Transportation Development Act Section 99234(a), the California Administrative Code and the rules and regulations of the San Diego Association of Governments. In our examination we performed to the extent applicable the tasks contained in Section 6666 of the California Administrative Code. In our opinion, the funds described above were expended and accounted for in conformance with the applicable laws, rules, and regulations of the Transportation Development Act and the allocation instructions of the San Diego Association of Governments. San Diego Association of Governments -2- October 8, 1982 The accompanying supplemental information is not necessary for a fair presentation of the financial statements but is presented as additional analytical data. The supplemental information has been subjected to the tests and other auditing procedures applied in the examination of the financial statements listed in the foregoing table of contents and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. Cordially, KENNETH CORY, STATE CONTROLLER Earl L. Lucas Assistant Deputy State Controller Local Government By Donald E. Etzlafr, Chief Bureau of Streets and Roads (916) 322-5613 DEE/gk Attachments 022 4b cc: City of Carlsbad Secretary of Business and Transportation O CITY OF CARLSBAD LOCAL TRANSPORTATION FIND COMPARATIVE BALANCE SHEETS Pertaining to Section 99234(a) of the Public Utilities Code June 30, 1982 and June 30, 1981 1981 1982 Assets Cash Investments Accrued Interest Receivable $ 4,414 72,000 1.937 $17,260 76,000 2,083 Total Assets $78,351 $95.343 Liabilities and Fund Balance Fund Balance $ 78,351 $95,343 Total Liabilities and Fund Balance $ 78,351 $95.343 See accompanying notes to financial statements. -3- CITY OF CARLSBAD LOCAL TRANSPORTATION FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Pertaining to Section 99234(a) of the Public Utilities Code Year Ended June 30, 1982 With Comparative Actual Amounts for Year Ended June 30, 1981 Budget 1982 Variance Favorable 1981 Actual (Unfavorable) Actual Revenues: Intergovernmental: Allocations: Miscellaneous: Interest Total $12,612 $12,612 $ -0- $ -0- -0- 5,365 12,612 17,977 5,365 5,365 6,885 6,885 Expenditures: Construction 840 985 (145) 38,190 Total Excess (Deficiency) of Revenues Over Expenditures 840 985 Fund Balance at Beginning of Year 11,772 78,351 16,992 78,351 (145) 38,190 5,220 (31,305) -0- 109,656 Fund Balance at End of Year $90,123 $95,343 $5,220 $78,351 See accompanying notes to financial statements. -4- CITY OF CARLSBAD LXAL TRANSPORTATION FUND SECTION 99234(a) PUBLIC UTILITIES CODE SCHEDULE OF TRANSPORTATION DEVELOPNENT ACT ALLOCATIONS FOR SPECIFIC PROJECTS As of June 30, 1982 Proj. Totals to Date. Unexpenoed Project No. Project Description Allocations Expenditures Allocations Status 3007 Coastal Bike Route $194,492/ $142,299 $ 52,193 Closed Harding St. Bike Lane Signs and Striping 840 ^ 840 -0- Closed Interest Applied 145 145 -0- Chestnut St. Bike , j Lane (11,772 -0- 11,772 Open Totals $207,249 $143,284 63,965 Add: Unexpended Interest Accumulated to Date 31,523 Less: Interest Applied Above 145 31,376 Fund Balance, June 30, 1982 $95.343 See notes to financial statements. O -5- CITY OF CARLSBAD FOOTNOTES TO THE FINANCIAL STATEN€NTS FOR THE FISCAL YEAR ENDED JUNE 30, 1982 A. Basis of Accounting: The Local Transportation Fund is accounted for using the modified accrual basis of accounting whereby revenues are recognized when they become both measurable and available to finance expenditures of the current period and expenditures are generally recognized when the related fund liabilities are incurred. -6- KENNETH CORY Controller of tlje jitaie of (EaJtfomra October 8, 1982 SACRAMENTO, CALIFORNIA sseos Mr. James F. Elliott Finance Director City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Dear Mr. Elliott: We have examined the financial statements of the City of Carlsbad pertaining to Article 3, Section 9923A(a) for the fiscal year ended June 30, 1982 and have issued our report thereon dated October 8, 1982. As a part of our examination, we made a study and evaluation of the City of Carlsbad's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. Under these standards, the purposes of such evaluation are to establish a basis for reliance on the system of internal accounting control in determining the nature, timing, and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements referred to above and to assist the auditor in planning and performing his examination of the financial statements. The objective of internal accounting control is to provide reasonable, but not absolute, assurance as to the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a system of internal accounting control should not exceed the benefits derived and also recognizes that the evaluation of these factors necessarily requires estimates and judgments by management. There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting control. In the performance of most control procedures, errors can result from misunderstanding of instructions, mistakes of judgment, carelessness, or other personal factors. Control procedures whose effectiveness depends upon segregation of duties can be circumvented by collusion. Similarly, control procedures can be circumvented intentionally by management either with respect to the execution and recording of transactions or with respect to the estimates and judgments required in the preparation of financial statements. Further, projection of any evaluation of internal accounting control to future periods is subject to risk that the procedures may become inadequate because of changes in conditions and that the degree of compliance with the procedures may deteriorate. Mr. James F. Elliott -2- October 8, 1982 Our examination of the financial statements referred to above made in accordance with generally accepted auditing standards, including the study and evaluation of the City of Carlsbad's system of internal accounting control for the year ended June 30, 1982, that was made for the purposes set forth in the first paragraph of this report, would not necessarily disclose all weaknesses in the system because it was based on selective tests of accounting records and related data. However, such study and evaluation disclosed no conditions that we believe to be material weaknesses. Our examination of the financial statements referred to above was further made for the purpose of determining compliance with the Transportation Development Act (the Act), the rules and regulations of the San Diego Association of Governments (TPA), and the California Administrative Code (CAC) including Section 6666. Among the items considered was the determination of propriety of expenditures in accordance with the Act and the regulations of the TPA and conformity with Sections 99301 and 99405 of the Public Utilities Code. Our evaluation of compliance factors disclosed no conditions that we believe to be areas of non-compliance. Cordially, KENNETH CORY, STATE CONTROLLER Earl L. Lucas Assistant Deputy State Controller Local Government By Donald E. Etzl/r, Chief Bureau of Street^ and Roads (916) 322-5613 DEE/gk Attachments 022 Ab AUDIT REPORT FOR THE SERRA COOPERATIVE LIBRARY SYSTEM FISCAL YEAR JUNE 30, 1981 DELIVERY 05/13/82 C OFFICE OF THE AUDITOR AND CONTROLLER 1600 Pacific Highway « San Diego, CA 92101 Rod Calvao Auditor and Controller 236-3711 BOARD OF SUPERVISORS TOM HAMILTON f!H»T DISTRICT PAUL, W. FORDEM SCCOND DISTRICT ROGER HEDGECQCK THIRD DISTRICT JIM BATES PAUL ECKEHT ^IPTM DISTRICT March 1, 1982 System Director Serra Cooperative Library System (070) 5555 Overland Avenue San Diego, CA 92123 We have examined the balance sheets of the Serra Cooperative Li- brary System as of June 30, 1981 and 1980, and related statements of revenues, expenditures and changes in fund balance for the years then ended in accordance with Section 6505 of the Califor- nia Government Code. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, in- cluded such tests of the accounting records and such other audit- ing procedures as we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the financial position of the Serra Cooperative Library System as of June 30, 1981 and 1980, and the results of its opera- tions for the fiscal years then ended, in conformity with general- ly accepted accounting principles applied on a consistent basis. DAVE KLEVEN Chief, Audit Division AU:DK:JM:405 cc: Board of Supervisors (A500) Grand Jury (C40) City of San Diego Oceansi de Carlsbad Escondido Coronado Imperial of of of of City City City City County of Files (2) JAMES M. STARK Audit Manager City of National City City of Chula Vista City of Brawley City of El Centre City of Imperial California State Li brari an Office of Management and Budget (A214) SERRA COOPERATIVE LIBRARY SYSTEM BALANCE SHEET JUNE 30, 1981 AND 1980 Assets Cash in Treasury Cash on Hand (Note 3) Cash in Bank Apportionment Receivable Accounts Receivable Due from Other Funds Fixed Assets Total Assets General Fund June 30 1981 1980 $149,700 $155,751 115,550 23,151 2,910 9,675 -0- 707 4,527 7,041 45,199 -0- General Fixed Fund Group of Accounts June 30 June 30 1981 1980 $300,986 $213,225 $ 60.398 $ 58,996 $ 60,398 $ 58,996 Liabilities and Fund Balances Liabi 1 iti es :• Accounts Payable Due to Other Funds (Note 7) Deferred Credit (Note 4) Total Liabilities Fund Balances: Reserved for Encumbrances Unreserved Equity in Fixed Assets Total Fund Balances Total Liabilities and Fund Balances $ 22,002 $ 8,274 22,973 7,318 60,986 105.961 14,469 180,556 -0- 15.592 13,933 183,700 195,025 197,633 $300.986 $213,225 60,398 58,996 60,398 58.996 $ 60,398 $ 58,996 The notes to the Financial Statements are an integral part of this statement. SERRA COOPERATIVE LIBRARY SYSTEM GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEARS ENDED JUNE 30, 1981 AND 1980 Revenues: Federal Grant State Grant Local Contri butions-CLSA Interest Income Total Revenues Expenditures : Salaries and Benefits Special Dept. Expense (Note Overhead (Note 6) Books and Publications Other Operating Expenses Fixed Assets Total Expenditures Excess of Revenues Over (Under) Expenditures Fund Balances - July 1 Prior Period Adjustment - Over Accrued Revenue Fund Balances - June 30 Budget $126,983 241,115 164,358 71,113 $603,569 331,624 5) 139,925 20,000 5,000 95,020 12,000 603,569 $ -0- Actual $121,521 234,280 98,610 17,256 $471,667 328,314 -0- 25,798 22,840 97,901 -0- 474,853 ( 3,186) 197,633 578 $195,025 Over (Under) Budget $( 5,462) ( 6,835) ( 65,748) ( 53,857) $(131,902) ( 3,310) (139,925) 5,798 17,840 2,881 ( 12,000) (128,716) $( 3,186) Actual Prior Year $121,447 212,804 78,705 21,743 $434,699 -0- 294,283 20,880 16,543 89,663 7,329 428,698 6,001 192,170 ( 538) $197,633 The notes to the Financial Statements are an integral part of this agreement. SERRA COOPERATIVE LIBRARY SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 1981 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. GENERAL BASIS OF ACCOUNTING: The Serra Cooperative Library System (SCLS) uses the modified accrual basis of accounting under which ex- penditures are recorded at the time liabilities are incurred and revenues are recorded when received in cash, unless they are susceptible to accrual; i.e., measurable and available to finance the SCLS's opera- tions or of a material amount and not received at the normal time of receipt prior to year end; e.g., State and Federal grant payments. B. FIXED ASSETS: General Fixed Assets are recorded as expenditures in the General fund at the time of purchase. Those as- sets are capitalized at cost in the General fixed As- set group of accounts. No depreciation has been provided on General Fixed Assets. Note 2. GENERAL The Serra Cooperative Library System was created by a Joint Powers Agreement entered into on June 30, 1965, between the cities of San Diego, Oceanside, National City, and Carls- bad. The Agreement was amended three times to include the cities of Brawley, Calexico, Chula Vista, Coronado, El Centre, Escondido, Imperial, and the counties of San Diego and Imperial. All public libraries in San Diego and Impe- rial counties are members now. The purpose of the Agree- ment was to improve and extend public library services to all residents of California cities and counties by closer cooperation between their respective libraries. The Agreement provides that the System shall be governed by an Administrative Council consisting of the head libra- rians of each member library. The Administrative Council will elect one of the members as president, who shall serve for one year. The Agreement (Fourth Amendment) designates the County of San Diego to provide headquarters for the System and act as contracting agency with the State of California for for the receipt of disbursements and accounting of such funds as may be allocated by the State and Federal Government for System use. Serra Cooperative Library System Notes to Financial Statements June 30, 1981 Page Two Effective July 1, 1978 the name of the organization was changed from Serra Regional Library System to Serra Cooperative Library System. The new By-Laws also determined that the governing board be the Ad- ministrative Council, represented by the head libra- rian of each member library jurisdiction. The offi- cers - Chairman and Vi ce-Chai rman are elected by the Administrative Council and are not to serve more than two consecutive terms in the same office. Note 3. Cash on Hand The amount of $115,550 consists of 1980/81 revenue which was deposited in July 1981 and considered in transit at June 30, 1981. Note 4. Deferred Credit The amount of $60,986 consists of 1981/82 revenue which was received and deposited before June 30, 1981. Note 5. Special Departmental Expenditures In prior years salaries and benefits paid to Serra em- ployees were charged to the above account. For the current year the account description was changed to Salaries and Benefits. Note 6. Overhead The overhead expenditures consist of indirect costs charged the County Library through a cost allocation plan formu-by di-lated pursuant to Federal Management Circular A-87 and rect charges for the County Library's Chief of Administra- tive Services and principal clerk via work authorizations for performing Serra related functions. Note 7. Due to Other Funds Amount Charged by County Library for A-87 overhead costs Charges from Work Authorizations Audit Adjustment due to a revised overhead allocation $ 47,102 1,126 48,228 (25.255) $ 22,973 KENNETH CORY (EtmtroIIsr of % jifctie of (Ealifontra SACRAMENTO, CALIFORNIA 958O5 March 19, 1982 Mr. James F. Elliott Finance Director City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Dear Mr. Elliott: We have examined the financial statements of the City of Carlsbad pertaining to Article 3, Section 99234(a) for the fiscal year ended June 30, 1981 and have issued our report thereon dated December 22, 1981. As a part of our examination, we made a study and evaluation of the City of Carlsbad's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. Under these standards, the purposes of such evaluation are to establish a basis for reliance on the system of internal accounting control in determining the nature, timing, and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements referred to above and to assist the auditor in planning and performing his examination of the financial statements. The objective of internal accounting control is to provide reasonable, but not absolute, assurance as to the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a system of internal accounting control should not exceed the benefits derived and also recognizes that the evaluation of these factors necessarily requires estimates and judgments by management. There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting control. In the performance of most control procedures, errors can result from misunderstanding of instructions, mistakes of judgment, carelessness, or other personal factors. Control procedures whose effectiveness depends upon segregation of duties can be circumvented by collusion. Similarly, control procedures can be circumvented intentionally by management either with respect to the execution and recording of transactions or with respect to the estimates and judgments required in the preparation of financial statements. Further, projection of any evaluation of internal accounting control to future periods is subject to risk that the procedures may become inadequate because of changes in conditions and that the degree of compliance with the procedures may deteriorate. Mr. James F. Elliott -2- March 19, 1982 Our examination of the financial statements referred to above made in accordance with generally accepted auditing standards, including the study and evaluation of the City of Carlsbad's system of internal accounting control for the year ended June 30, 1981, that was made for the purposes set forth in the first paragraph of this report, would not necessarily disclose all weaknesses in the system because it was based on selective tests of accounting records and related data. However, such study and evaluation disclosed no conditions that we believe to be material weaknesses. Our examination of the financial statements referred to above was further made for the purpose of determining compliance with the Transportation Development Act (the Act), the rules and regulations of the San Diego Association of Governments (TPA), and the California Administrative Code (CAC) including Section 6666. Among the items considered was the determination of propriety of expenditures in accordance with the Act and the regulations of the TPA and conformity with Sections 99301 and 99405 of the Public Utilities Code. Our evaluation of compliance factors disclosed no conditions that we believe to be areas of non-compliance. Cordially, KENNETH CORY, STATE CONTROLLER Earl L. Lucas Assistant Deputy State Controller Local Government By Donald E. Etzlef, Chief Bureau of Streets and Roads (916) 322-5613 DEE/jn Attachments 6295A CITY OF CARLSBAD REPORT OF EXAMINATION OF THE LOCAL TRANSPORTATION FUND FOR THE FISCAL YEARS ENDED JUNE 30, 1980 AND 1981 KENNETH CORY STATE CONTROLLER DIVISION OF LXAL GOVERNMENT FISCAL AFFAIRS BUREAU OF STREETS AND ROADS CITY OF CARLSBAD TABLE OF CONTENTS JUNE 30, 1981 Auditor's Report 1 Comparative Balance Sheets 3 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 4 Supplemental Schedule - Schedule of Transportation Development Act Allocations for Specific Projects 5 Footnotes to the Financial Statements 6 KENNETH CORY of % jiiale of California SACRAMENTO. CALIFORNIA 958O5 December 22, 1981 Mr. Richard J. Huff Executive Director San Diego Association of Governments Security Pacific Plaza 1200 Third Avenue, Suite 524 San Diego, California 92101 Dear Mr. Huff: We have examined the balance sheets of the Local Transportation Fund of the City of Carlsbad as of June 30, 1981 and June 30, 1980, and the related statement of revenues and expenditures and changes in fund balance for the years then ended. Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the Local Transportation Fund of the City of Carlsbad at June 30, 1981 and June 30, 1980 and the results of operation of such fund for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. Our examination was also made for the purposes of determining compliance with the Transportation Development Act Section 99234(a), the California Administrative Code and the rules and regulations of the San Diego Association of Governments. In our examination we performed to the extent applicable the tasks contained in Section 6666 of the California Administrative Code. In our opinion, the funds described above were expended and accounted for in conformance with the applicable laws, rules, and regulations of the Transportation Development Act and the allocation instructions of the San Diego Association of Governments. Mr. Richard J. Huff -2- December 22, 1981 The accompanying supplemental information is not necessary for a fair presentation of the financial statements but is presented as additional analytical data. The supplemental information has been subjected to the tests and other auditing procedures applied in the examination of the financial statements listed in the foregoing table of contents and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. Cordially, KENNETH CORY, STATE CONTROLLER Earl L. Lucas Assistant Deputy State Controller Local Government By nrwivi* 7 • Donald E. Etzle/, Chief Bureau of Street? and Roads (916) 322-5613 DEE/jn Attachments 6295A cc: City of Carlsbad Secretary of Business and Transportation CITY OF CARLSBAD LXAL TRANSPORTATION FUND COMPARATIVE BALANCE SHEETS Pertaining to Section 99234(a) of the Public Utilities Code June 30, 1981 and June 30, 1980 1981 1980 Assets Cash $ 4,414 $ 43,011 Investments 72,000 60,000 Accrued Interest Receivable 1,937 2,645 Due From General Fund -0- 4,000 See accompanying notes to financial statements. -3- Total Assets $ 78,351 $109,656 Liabilities and Fund Balance Fund Balance $ 78,351 $109,656 Total Liabilities and Fund Balance $ 78,351 $109.656 CITY OF CARLSBAD LOCAL TRANSPORTATION FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Pertaining to Section 99234(a) of the Public Utilities Code Year Ended June 30, 1981 With Comparative Actual Amounts for Year Ended June 30, 1980 1981 Budget Variance Favorable 1980 Actual (Unfavorable) Actual Revenues: Intergovernmental Allocations: Miscellaneous: Interest Total $ -0- $ -0- $ -0- $164,492 -0- -0- 6,885 6,885 6,885 13,743 6,885 178,235 Expenditures: Construction Total Excess (Deficiency) of Revenues Over Expenditures Fund Balance at Beginning of Year 86,383 38,190 86,383 38.190 48,193 104,109 48,193 104.109 (86,383) (31,305) 55,078 74,126 109,656 109,656 -0- 35,530 Fund Balance at End of Year $ 23.273 $ 78.351 $ 55.078 $109.656 See accompanying notes to financial statements. -4- CITY OF CARLSBAD LOCAL TRANSPORTATION FUND SECTION 99234(a) PUBLIC UTILITIES CODE SCHEDULE OF TRANSPORTATION DEVELOPMENT ACT ALLOCATIONS FOR SPECIFIC PROJECTS As of June 30, 1981 Proj. No. Project Description Totals Totals to Date — Unexpended Project Allocations Expenditures Allocations Status 3007 Coastal Bike Route $194,492 $142,299 $ 52,193 $194.492 $142.299 Add: Unexpended Interest Accumulated to Date Fund Balance, June 30, 1981 Open - Construction to continue during 1981-82 52,193 26,158 $ 78.351 See notes to financial statements. -5- CITY OF CARLSBAD FOOTNOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1981 A. Basis of Accounting: The Local Transportation Fund is accounted for using the modified accrual basis of accounting whereby revenues are recognized when they become both measurable and available to finance expenditures of the current period and expenditures are generally recognized when the related fund liabilities are incurred. B. Interest Income: Interest income derived from the investment of Article 3 funds, was computed on the basis of average monthly cash balance totals. u-- KENNETH CORY of tfye jifoie of SACRAMENTO. CALIFORNIA S58OS February 26, 1982 Ms. Adriana Gianturco, Director Department of Transportation 1120 N Street Sacramento, California 95814 Dear Ms. Gianturco: Enclosed please find our report of examination of the City of Carlsbad in connection with Agreement 11-5308 between the State Department of Transportation and the City of Carlsbad, under the provisions of the Federal Aid Emergency Repair Program. Sincerely, /v • Clinton K. Armstrong, Chief Regional Audit Branch Division of Audits me CITY OF CARLSBAD REPORT OF EXAMINATION FEDERAL AID EMERGENCY REPAIR PROGRAM AGREEMENT NUMBER 11-5308 FEBRUARY 26, 1982 Kenneth K. Okino, Audit Manager Phone: (213) 575-7080 Audit Staff: Evelyn Teramae State Controller's Office Division of Audits 3212 Rosemead Boulevard El Monte, California 91731 TABLE OF CONTENTS Page Number Auditor's Certification 1 Schedule 1 - Summary of Project Costs 2 KENNETH CORY of % ^iafa> of (ttalifbrma SACRAMENTO. CALIFORNIA 858O5 February 26, 1982 Ms. Adriana Gianturco, Director Department of Transportation 1120 N Street Sacramento, California 95814 Dear Ms. Gianturco: We have examined the records of the City of Carlsbad in connection with Agreement 11-5308 between the State Department of Transportation and the City of Carlsbad, under the provisions of the Federal Aid Emergency Repair Program. Our examination was made in accordance with generally accepted government auditing standards and included such tests of accounting records and such other auditing procedures we considered necessary in the circumstances. The scope of our audit was limited to a desk review of supporting documentation submitted by the city. In our opinion, the Federal ER Project Cost Summary shown on Schedule 1 presents fairly the amounts approved, claimed and eligible in accordance with the financial provisions of the agreement. It should be understood that our examination was directed primarily to the expresssion of an opinion on the accompanying Federal ER Project Costs Summary and would not necessarily disclosed all irregularities of a compliance nature. Respectfully submitted, Jack R. Brown, Chief Division of Audits me -1- SCHEDULE 1 V... CITY OF CARLSBAD FEDERAL AID EMERGENCY REPAIR PROGRAM SUMMARY OF PROJECT COSTS AGREEMENT NUMBER 11-5308, FEDERAL PROJECT NUMBER ER-870(1) Agreement Reported And Line Item Location Estimate Audited Costs ER-870CD On FAU Route S-344, El Camino Real south of Marion Road in the City of Carlsbad Total Emergency Opening Costs $ 2.950 $ 955 Less Advance of Funds on 9/5/79 ( 955) Refund Due State and/or Additional Payment to City -2- KENNETH CORY (jdmttroller of ifye Jiiate cf SACRAMENTO. CALIFORNIA 958O5 February 19, 1982 Ms Adriana Gianturco, Director Department of Transportation 1120 N Street Sacramento, CA 95814 Dear Ms Gianturco: Enclosed please find our report of examination of the City of Carlsbad in con- nection with Agreement 11-5308 between the State Department of Transportation and the City of Carlsbad, under the provisions of the Federal Aid Emergency Repair Program. Very truly yours. Clinton K. Armstrong, Chief Regional Audits Branch Division of Audits CKA:mp Enclosure cc: Authorized Agent •^Sity Manager Office of Emergency Services, Emergency Assistance CITY OF CARLSBAD REPORT OF EXAMINATION FEDERAL AID EMERGENCY REPAIR PROGRAM AGREEMENT NUMBER 11-5308 FEBRUARY 19, 1982 Kenneth Okino, Audit Manager Phone: (213) 575-7080 Audit Staff: Evelyn Teramae State Controller's Office Division of Audits 3212 Rosemead Blvd. El Monte, CA 91731 E82-FLR-009 TABLE OF CONTENTS Page Number Auditor's Certification 1 Schedule 1 - Summary of Project Costs 2 KENNETH CORY of ifye jiiaie cf OMtfornm SACRAMENTO, CALIFORNIA S58O5 February 19, 1982 Ms Adriana Gianturco, Director Department of Transportation 1120 N Street Sacramento, CA 95814 Dear Ms Gianturco: We have examined the records of the City of Carlsbad in connection with Agreement 11-5308 between the State Department of Transportation and the City of Carlsbad, under the provisions of the Federal Aid Emergency Repair Program. Our examina- tion was made in accordance with generally accepted government auditing stan- dards and included such tests of accounting records and such other auditing procedures we considered necessary in the circumstances. The scope of our audit was limited to a desk review of supporting documentation submitted by the city. In our opinion, the Federal ER Project Cost Summary shown on Schedule 1 pre- sents fairly the amounts approved, claimed, eligible and questioned in accor- dance with the financial provisions of the agreement. It should be understood that our examination was directed primarily to the expression of an opinion on the accompanying Federal ER Project Costs Summary and would not necessarily disclose all irregularities of a compliance nature. Respectfully submitted, Jack R. Brown, Chief Division of Audits JRB:mp SCHEDULE 1 CITY OF CARLSBAD FEDERAL AID EMERGENCY REPAIR PROGRAM SUMMARY OF PROJECT COSTS AGREEMENT NUMBER 11-5308, FEDERAL PROJECT NUMBER ER-961(1) Agreement Reported Audit Audited Estimate Costs Adjustment Costs Line Item Location ER-961(1) On FAU Route S 347 La Costa Ave. East of Romeria Ave in the City of Carlsbad Total Emergency opening $1,369 $628 $(82)* $ 546 Less Advance of funds on 4-28-81 (628) Refund Due the State $ 82 *Audit Adjustment: Reported overhead charges is an administrative expenditure not directly related to emergency opening, work and is not eligible for .reimbursement. - 2 - CITY OF CARLSBAD Water Utility Fund Financial Statements June 30, 1982 and 1981 (With Accountants' Report Thereon) rr» V->OIN 1V\JL) CERTIFIED PUBLIC ACCOUNTANTS ^ASSOCIATES FOURTEEN CORPORATE PLAZA DRIVE NEWPORT BEACH, CALIFORNIA 92660 714/759-0511 The Honorable Mayor and City Council City of Carlsbad, California We have examined the balance sheets of the Water Utility Fund of the City of Carlsbad, California, as of June 30, 1982 and 1981 and the related statement of earnings and retained earnings and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards, and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the Water Utility Fund of the City of Carlsbad, California at June 30, 1982 and 1981, and the results of its operations and changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. September 27, 1982 CITY OF CARLSBAD Water Utility Rind Balance Sheet June 30, 1982 and 1981 Assets Current assets: Cash and cash equivalents (note 3) Iteceivables: Accounts Accrued interest Inventory, at cost Prepaid expenses Total current assets 1982 1,600,549 421,570 13,732 105,432 5.317 2,146,600 1981 Liabilities Current liabilities (payable from 1,454,237 current assets): Accounts payable 437,686 Accrued salaries 4,377 Due to sanitation fund 96,314 Due to sewer construction fund 5,328 Deposits payable 1,997,942 Total current liabilities (payable from current assets) 1982 96,493 9,182 69,774 175,449 1981 96,785 6,700 21,628 14,000 61,421 200,534 Restricted assets: Cash and cash equivalents (note 3) Accrued interest Total restricted assets Current liabilities (payable from 1,365,595 1,322,851 restricted assets): 8,422 31,731 Accrued interest Current portion of revenue bonds payable 1,374,017 1,354,582 Total current liabilities (payable from restricted assets) Total current liabilities 115,000 115,000 290,449 37,334 105.000 142,334 342,868 Property, plant, and equipment: Land and water rights Buildings Wells, reservoirs, and dams Transmission and distribution lines Filters and pumps Fire hydrants Equipment and vehicles Fire Protection Services Construction in progress Less accumulated depreciation Net property, plant, and equipment Total assets 231,956 37,964 1,289,853 3,879,689 147,349 326,656 258,177 3,916 66,817 6,242,377 (1,778,688) 4,463.689 $ 7,984,306 231,956 37,964 1,289,853 3,819,135 147,349 312,665 244,797 63,769 6,147,488 (1,632,993) 4,514,495 7,867,019 Long-term liabilities (note 4): Revenue bonds payable (net of unamortized discount of $9,317 and current portion) 1,017,683 1,242,005 Total liabilities 1.308,132 1.584,873 Fund equity: Contributed capital 2,248,965 2,248,965 Retained earnings: Rsserved for construction 527,161 382,715 Reserved for debt service 883,998 837,438 Designated for continuing appropriations 474,080 2,069,000 Unreserved, undesignated 2,541,970 744,028 Total retained earnings 4,427,209 4,033,181 Total fund equity 6,676.174 6,282,146 Total liabilities and fund equity $7,984,306 7,867,019 See accompanying Motes to Financial Statements CITY OF CARLSBAD Water Utility Fund Statement of Earnings and Retained Earnings Years ended June 30, 1982 and 1981 Operating revenues: Metered Water Sales Other Charges for Services Total operating revenues Operating expenses: Personal services Office expenses Repairs and maintenance Professional services Transportation Insurance Purchased water Depreciation and amortization Total operating expenses Operating income Non-operating revenues (expenses): Interest income Interest expense and fiscal agent fees Contributions & Donations from Private Sources Total non-operating revenues (expenses) Net income Retained earnings at beginning of year, as previously reported Effect of change in accounting principles (note 2) Retained earnings at beginning of year, as adjusted Retained earnings at end of year 1982 $1,679,299 7,077 361,552 24,670 100,056 152,333 3,067 18,004 814,410 146,427 1,620,519 65,857 1981 1,707,757 67,977 1,686,376 1,775,734 319,583 (69,715) 78,303 326,440 22,420 130,185 120,350 15,876 54,965 842,039 143,481 1,655,756 119,978 221,857 (74,985) 328,171 394,028 146,872 266,850 4,033,181 4,616,854 (850,523) 4,033,181 3,766,331 $4,427,209 4,033,181 See accompanying Notes to Financial Statements. CITY OF CARLSBAD Water Utility Fund Statement of Changes in Financial Position Year ended June 30, 1982 and 1981 1982 1981 Sources of working capital: Operations Net income $ 394,028 266,850 Items not requiring working capital: . Depreciation and amortization 146,427 143,481 Working capital provided by operations 540,455 410,331 Uses of working capital: Acquisition of property, plant, and equipment 104,943 25,355 Decrease in long-term revenue bonds payable 215,000 105,000 Net increase in other restricted assets 19,435 102,866 Net decrease in other current liabilities payable from restricted assets 27,334 24,344 Total uses of working capital 366,712 257,565 Net increase in working capital $ 173,743 152,766 Elements of net increase (decrease) in unrestricted working capital: Cash and cash equivalents $ 146,312 172,003 Accounts receivable (16,116) 63,901 Accrued interest receivable 9,355 (24,709) Inventory 9,118 5,775 Prepaid expenses (11) (2,269) Accounts payable 292 24,693 Accrued salaries (2,482) (6,700) Due to other funds 35,628 (35,628) Deposits payable (8,353) (44,300) Net increase in working capital $ 173,743 152,766 See accompanying Notes to Financial Statements. CITY OF CARLSBAD Water Utility Fund Notes to Financial Statements June 30, 1982 and 1981 (1) Summary of Significant Accounting Policies The Water Utility Fund is an enterprise fund of the City of Carlsbad, California which is used to account for activities necessary to provide water services to the residents of the City including, but not limited to, operations, maintenance, financing and related debt service, billing and collection, and the acquisition of fixed assets that are utilized in providing these services. As an enterprise fund, its operations are financed and operated in a manner similar to private business enterprise - where the intent of the City Council is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user changes. The accounting policies of the City of Carlsbad with regard to this fund conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant accounting policies: (a) Measurement Focus The Water Utility Fund is accounted for on an "income determination" or "cost of services" measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity provides an indication of the economic net worth of the fund. Operating statements for proprietary fund types report increases (revenues) and decreases (expenses) in total economic net worth. (b) Basis of Accounting The basis of accounting stipulates the timing of the measurements made under the measurement focus used. The revenues, expenses, and transfers - and the related assets and liabilities - are recognized in the accounts and reported in the financial statements under the accrual basis of accounting. Revenues are recognized when they are earned and their expenses are recognized when they are incurred. (c) Cash Equivalents Cash equivalents are stated at cost, which approximates market. CITY OF CARLSBAD Water Utility Fund Notes to Financial Statements, Continued (d) Inventories Inventories consist of materials and supplies which are valued at cost. (e) Property, Plant and Equipment Property, plant and equipment are stated at cost or fair market value at the date contributed. Depreciation has been provided over the estimated useful lives of the assets using the straight-line method. (2) Changes in Accounting Principles Effective July 1, 1980, the City changed its method of accounting for accrued payroll, depreciation of certain fixed assets not previously depreciated and the write-off of meters and services previously capitalized. These changes were made to comply with Statement 1 of the National Council on Governmental Accounting. These accounting changes are as follows: Increase (decrease) in retained earnings: Accrual of wages payable 3 (4,339) Services and meters previously capitalized and not depreciated, considered as expenses of prior years (812,483) Fire hydrants not previously depreciated (33,701) $(850,523) (3) Cash and Cash Equivalents A summary of cash and cash equivalents is as follows: 1982 1981 Interest Rates Cost Interest Rates Cost Unrestricted current assets: Cash - $ 124,549 - $ 69,237 Certificates of deposit 13.75 - 15.75% 1,240,000 12.5% - 19% 516,000 Banker's acceptance and federal agency notes 13.60 - 14.50% 236,000 13.5% - 18.75% 869,000 $1,600,549 $ 1,454,237 CITY OF CARLSBAD Water Utility Fund Notes to Financial Statements, Continued Restricted current assets: Cash Certificates of deposit Banker's acceptance and federal agency notes 13.75 - 15.75% 13.60 - 14.50% $ 109,854 960,000 12.5% - 19% 295,741 13.5% - 18.75% $1,365,595 $ 3,051 1,084,000 235,800 $ 1,322,851 (4) Long-Term Debt A summary of Revenue Bonds Payable 1982 1981 1958 Waterworks Revenue Bonds, principal due in amounts ranging from $35,000 to 47,000 on July 1 of each year through 1988 (Interest is payable on January 1 and July 1 of each year at varying rates from 4.25% to 4.10%) 1960 Waterworks Revenue Bonds principal due in amounts ranging from $10,000 tO 65,000 on July 1 of each year through 1990 (Interest is payable on January 1 and July 1 of each year at varying rates from 4.25% to 3.875%) 1970 Waterworks Revenue Bonds and principal due in amounts ranging from $55,000 to 100,000 on July 1 of each year through 1990 (Interest is payable on January 1 and July 1 of each year at varying rates from 6% to 6.9%) Total revenue bonds payable Less unamortized discount $ 257,000 $ 332,000 195,000 215,000 690,000 810,000 Less current portion $1,142,000 $1,357,000 9,317 9,995 1,347,005 115,000 105,000 $1,017,683 $1,242,005 ENCINA WATER POLLUTION* CONTROL FACILITY FINANCIAL INFORMATION WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS June 3d, 1982 ENCINA WATER POLLUTION CONTROL FACILITY June 30, 1982 Table of Contents Page Numb e r Accountants' Report •, Schedule of Ownership of Plant and Equipment 2 Schedule of Participants' Accounts 3 Schedule of Allocation of Revenue, Operating Costs and Expenses ^ Schedule of Cash in Vista Trust Accounts 5 Schedule of Changes in Reserve for Non-grant Funded Projects /• Notes to Financial Schedules 7-10 c HRV-V £!. EVANS. :.".». fHll'P M. MOLTAA«P C.fA >VIN G. PETERS. C P.i. C-ONALD K. PETERSON. C.= - PC^AI-D t. CALL-\MiN. C Pi. . f'CTEB SCHEME.-,-. C.e-V DIEHL. EVANS AND COMPANY A PARTNERS^*3 CF ACCOU\rANO CC»P^-A-'ONS CERTIFIED PUBLIC ACCOUNTANTS 2965 ROOSEVELT ST<?ECT CARLSBAD. CALIFORNIA 92OOS (7141 729-3343 (714) 74J-JJ I September 14, 1982 OTHER OFFICES AT: •vO WEST \VOOOWAflD AVENUE ESCONDIDO. CALIFORNIA 92O25 (714) 741-3141 ? O NORTH BUSH STFTEE* SANTA ANA. CALIFORNIA (7141 542-4453 ACCOUNTANTS' REPORT Joint Advisory Committee Encina Water Pollution Control Facility Carlsbad, California We have examined the schedule of ownership of plant and equipment of the ENCINA WATER POLLUTION CONTROL FACILITY as of June 30, 1982 and the related schedules of participants' accounts, allocation of revenue, operating costs and expenses, cash in Vista trust accounts, and schedule of changes in reserve for non-grant funded projects for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly, in- cluded such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. '.. In our opinion, the schedules referred to above present fairly the owner- ship of plant and equipment of the ENCINA WATER POLLUTION CONTROL FACILITY as of June 30, 1982, and the allocation of revenue, operating costs and expenses, participants' accounts, cash in Vista trust accounts, and changes in reserve for non-grant funded projects for the year then ended, applied on a basis consistent with that of the preceding year. —i— ENCINA WATER POLLUTION CONTROL FACILITY SCHEDULE OF OWNERSHIP OF PLANT AND EQUIPMENT June 30. 1982 Percentage Ownership B»it . V C B SM L E A 100.0 B 93.0 7.0 C 84.5 15.5 3 84.5 15-5 E 72.7 27.3 f 52.7 37.3 G 61.5 38.5 (Includes force main) H 48.3 51.7 1 29.46 24.95 4.51 17.45 16.36 7.27 J 16.67 28.66 13.00 16.67 16.67 8.33 SYSTEM TOTALS Ottice rquipaenc and Furnishings (1) Plant Equipment (1) Encina Plant Projects and Design Work (1) TOTAL PLAXT AND EQUIPMENT - BEFORE CONSTRUCTION IN PROGRESS Construction in Progress, Encina Plant: Expansion Phase III (Note 3) Expansion Phase III-A (Xote 3) TOTAL PLAXT AND EQUIPMENT Total Costs (Notes 2 and 3) $ 252,526 326,406 195,513 93,925 169,419 379,776 118,564 513,056 2,819,076 2,171,685 7.039,946 46,064 94,920 206,524 7,387,454 43,363,534 ' 22.279 . $ 50,773.267 Vista $ 252.526 303,558 165,208 79,367 123,168 238,120 72,917 247,806 830,500 362,020 2,675,190 13,571 27,963 60,842 $ 2,777,566 Carlsbad S 22,848 30,305 14.558 46,251 141,656 45,647 265,250 703,359 622,405 1,892,279 11,493 23,683 51,528 $ 1,978,983 Buena San Marcos Leucadia Encinitas $127,140 $491,929 $461,201 $204,947 282.319 362,020 362,020 180,901 409,459 853, S49 823,221 385,848 2'078 8,038 7,536 3,348 4,281 16.563 15.529 6.901 _ 9,314 36.039 33,787 15,014 $ 425,132 $ 914,589 $ 880,073 $ 411,111 (1) Distributed on the same basis as Unit I. accompanying accountants' report and notes to financial schedules -2- ENCINA WATER POLLUTION CONTROL FACILITY SCHEDULE OF PARTICIPAHTS' ACCOUNTS For the year ended June 30, 1982 Vista Sanitation District City of Carlsbad Buena Vista Sanitation District Saa Xarcos County Water District Leucadia County Kater District Er.ciaitas Sanitary District TOTALS Due To (From) Participants' June 30. 1981 $ (21,315) (12,779) 13,538 45,670 (2,064) 7.378 $ 30.428 Excess of Costs And Expenses Over Revenue $ 399,160 274,718 42,154 182,337 169,446 42,270 $ 1.110,085 Participants* Payments $ 515,799 288,110 31,547 144,738 166,375 36.243 $ 1.182,812 Due To (From) Participants" June 30, 1982 $ 95,324 613 2,931 8.071 (5,135) 1.351 accountants' report and notes to financial schedules. -3- V ENCINA WATER POHOT10N CONTROL FACILITY SCHEDULE OF ALLOCATION OF REVENUE, OPERATING COSTS AND EXPENSES For the year ended June 30, 1982 Total HVENUE: Interest incone (Ownership) Septic haulers income (Note 4) TOTAL REVENUE OPERATING COSTS: Unit: A - Vista outfall (Ownership) B - Joint Vista-Carlsbad outfall (Ownership) C - Buena Vista punp station (Ownership) D, E, F, and H - Vista - Carlsbad sewers and force nains (Note 4) G - Agua Redionda punp station (Note 4) I - Encina plant (Note 4) J - Encina ocean outfall (Note 4) Capital outlays - (Ownership basis) Industrial waste charges (direct costs) Meter stations (direct costs) (Note 4) Total Operating Costs ,A3.v;SISTm:VE EXPENSES: Eirectors' meetings (direct costs) Leucadia County Hater District administration (Note 4) Professional services (Ownership) Insurance (Ownership and Note 4) - Custodial service (Ownership) Travel and meetings (Sote i) General aanager, office nanager and benefits (Note 4) Otrice expense, etc. (Sote 4) Total Administrative Expenses TOTAL OPERATING COSTS AND ADMINISTRATIVE EXPENSES EXCESS OF COSTS AND EXPENSES OVER REVENUE 4,842 20,797 25,639 102,768 Vista 1,427 6.010 7.437 86,839 Carlsbad $ 1,208 5,012 6,220 15,929 Buena 218 894 1,112 San Marcos 845 4.160 _.5.005 Leucadia 792 3,868 4.660 Enclnitas 352 853 1,205 10,703 61,318 726,924 32,082 18,028 2,831 . 954,654 3,350 15,000 27,003 31,867 6,579 4,918 82,193 10,160 181,070 1,135,724 $ 1,110,085 5,833 33,418 210,081 9,451 3,621 1,543 350,786 500 4,335 7,955 12,973 1,938 1,421 23,754 2,935 55,811 406,597 $ 399,160 4,870 27,900 175,188 8.005 3,668 1,288 236,848 625 3,615 6,737 8,029 1,642 1,185 19.808 2,449 44,090 280,938 $ 274,718 31,258 1,447 2,669 35,374 475 645 1,218 1,075 297 211 3,534 437 7,892 43,266 $ 42,154 145,385 5,598 3,335 154,318 550 3,000 4,712 4,159 1,148 984 16,439 2,032 33,024 187,342 S 182,337 135,208 5,249 2,774 143,231 600 2,790 4,418 3,898 1,076 915 15,288 1,890 30,875 174,106 $ 169,446 29,804 2,332 1,961 34,097 600 615 1.963 1,733 478 202 3,370 417 9,378 43,475 $ 42,270 i :i!*»aying accountants' report and notes to financial schedules. ENCINA WATER POLLUTION CONTROL FACILITY SCHEDULE OF CASH IN VISTA TRUST ACCOUNTS For the year ended June 30, 1982 CASH IN TRUST ACCOUNTS - July 1, 1981 CASK RECEIPTS: Contributions from participants ' Interest earned Clean water grants - Phase III CASH EXPENDITURES: Encina expansion - Phase III CASH IN TRUST ACCOUNTS - June 30, 1982 (Note 1) \ -\IL 901 County Funds 3097-05 Phase III ? 5 , 593, 717 22.192.876 22,199,543 $ 5>587>050 «*» r See accompanying accountants' report and -5- notes to financial schedules. ENCINA WATER POLLUTION CONTROL FACILITY SCHEDULE OF CHANGES IN RESERVE FOR NON-GRANT FUNDED PROJECTS For the year ended June 30, 1982 BALANCE IN RESERVE - July 1, 1981 ADD: CONTRIBUTIONS FROM PARTICIPANTS I.liSS: NON-GRANT FUNDED PROJECT EXPENSES: Phase III-A (Note 3) Solids Disposal Phase IV study Waiver application BALANCE IN RESERVE - June 30, 1982 (Note 1) $ 22,279 811 27,522 7,960 205,000 58,572 $ 146,428 ^ accompanying accountants' report and notes to financial schedules. -6- ENCINA WATER POLLUTION CONTROL FACILITY NOTES TO FINANCIAL SCHEDULES June 30, 1982 1. HISTORY AND ORGANIZATION: On July 13, 1961, Vista Sanitation District and the City of Carlsbad entered into an agreement for a joint sewer system known as the Encina Water Pollution Control Facility. This agreement provided for the establishment, construction, operation and maintenance of facilities for the transmission, treatment and disposal of sewage which facilities shall comprise a single system of sanita- tion works. By virtue of subsequent amendments and supplements to this basic agreement, Leucadia County Water District, Buena Vista Sanitation District, San Marcos County Water District, and Encinitas Sanitary District also have become participants in this Facility. As of July 1, 1979, Leucadia County Water District became the operator and administrator of the Facility and is responsible for the mangement, maintenance and operations of the joint system. Vista Sanitation District remains the administrator of'the Phase III plant enlargement. The cash in the Vista Trust Account is comprised of amounts remitted by the participants, but not yet disbursed for construction. The reserve for non-grant funded projects is for expenditures for the design of the Phase III-A Project and studies for the Ocean Waiver Application, Phase IV Project and Solids Disposal problem. Costs will be allocated based on ownership in Unit I after Phase III-A enlargement (see Note 3). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (a) The Facility records revenues and expenditures on the accrual basis. (b) Acquisitions of plant and equipment are expensed on the records of the Facility when acquired, as the assets are owned by the individual participants. Ownership percentages are determined by joint agreement at the time the assets are acquired. Total costs, as reflected on the schedule of ownership, is based on accumulated expenditures to date for the various units. (c) Revenue and operating costs are allocated to the various participants in accordance with their ownership percentages in the various units, on usage based upon sewage flow or upon direct costs. See accompanying accountants' report. -7- ENCINA WATER POLLUTION CONTROL FACILITY NOTES TO FINANCIAL SCHEDULES (Continued) June 30, 1982 3. PLANT AND EQUIPMENT: Additions to plant and equipment consist of the following during the year ended June 30, 1982: Balance . , Balance July 1, 1981 Additions Deletions June 30, 1982 System/units $ 7,095,946 $ $ 56,000 $ 7,039,946 Office building 11,194 - 11,194 Office equipment and furnishings 16,951 29,113 - 46,064 Plant equipment 91,951 2.969 - 94,920 Encina plant projects 206,524 - - 206,524 Construction in Progress: Encina Plant Expansion: Phase III, Units I and J 21,348,896 22,014,638 - 43,363,534 ,^ Phase III-A - 22.279 - 22.279 TOTALS $ 28.771,462 $ 22,068,999 $__6_7_,194 $ 50,773.267 / Construction in Progress: Upon completion of the Encina Phase III and III-A enlargements, Unit I will be enlarged from 13.75 MGD to 22.5 MGD, each of the participants shall have owner- ship and capacity rights in Unit I and Unit J as follows: UNIT I After Phase III Enlargement After Phase III-A Enlargement Participant MGD Percentage MGD Percentage Vista Carlsbad Buena San Marcos Leucadia Encinitas 5.40 4.56 0.82 3.22 3.00 1.00 30.00 25.33 4.55. 17.89 16.67 5.56 6.750 5.716 1.034 4.000 3.750 1.250 30.00 25.40 4.59 17.78 16.67 5.56 ' TOTALS 18.00 100.00 22.50 100.00 See accompanying accountants' report. -8- ENCINA WATER POLLUTION CONTROL FACILITY NOTES TO FINANCIAL SCHEDULES (Continued) June 30, 1982 3, PLANT AND EQUIPMENT (Continued): Construction in Progress (Continued); Participant Vista Carlsbad Buena San Marcos Leucadia Encinitas UNIT J MGD TOTALS 6.34 10.89 4.94 6.33 6.33 3.17 38.00 Percentage 16.67 28.66 13.00 16.67 16.67 8.33 100.00 These construction in progress costs have not been allocated to the various participants during the period of construction because different units of the construction are to be allocated differently to each of the participants and total costs of the respective units will not be known until the project is completed and final costs are determined. 4.SEWAGE FLOW ALLOCATION: Sewage flow allocations for the year ended June 30, 1982 are as follows: Units *MGD Units D, E, F, G, H I, J and ADF & Vista Meter Stations Administrative Vista Sanitation District 3.96 City of Carlsbad 3.31 Buena Sanitation District .59 San Marcos County Water District 2.75 Leucadia County Water District 2.55 Encinitas Sanitary District 1 .56 TOTALS 13.72 54.5 45.5 100.0% *Millions of Gallons per day (MGD) and Average Daily Flow (ADF). 28.9 24.1 4.3 20.0 18.6 4.1 100.0% See accompanying accountants' report. -q- ENCINA WATER POLLUTION CONTROL FACILITY NOTES TO FINANCIAL SCHEDULES (Continued) June 30, 1982 5. PUBLIC EMPLOYEES RETIREMENT SYSTEM:iThe Facility is a participant in the Public Employees Retirement System {, (PERS) of the State of California covering all the Facility's permanent I employees. Contributions to the system are based on rates set by PERS | based on certain actuarial assumptions, such as length of employment, [ estimated salary rates, mortality rates, projected retirement benefits | and other factors. Pension costs are recorded as expenditures when paid by monthly contributions to PERS. The total pension expense for the year ended June 30, 1982 was $ 59,178, of x^hich approximately $ 7,128 was for prior service costs. Actuarial information related to the plan was not available from PERS at June 30, 1982. However, at June 30, 1981, the plan net assets available for benefits totalled $ 173,601, and the present value of the Facility's and Leucadia County Water District's employees unfunded obligation for prior service costs totalled $ 239,541, which amount will be funded through the year 2000 from established contribution rates. The actuarial present value of vested and non-vested accumulated plan benefits is not determined under PERS system of accounting. Because Encina employees are combined with the Leucadia County Water District's employees under the plan, Encina's portion of the total unfunded retirement ^f benefits is undeterminable at this time. I See accompanying accountants' report. -10-