HomeMy WebLinkAbout; ; 1983-1984 CAFR; 1984-06-30CITV OF
CALIFORNIA
CRRLSBRD TRIRTHLON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
JUNE 30, 1984
CITY OF CARLSBAD
CALIFORNIA
Comprehens i ve Annua
F i nanc i a I Report
June 30, 1984
(Prepared by the Finance Department)
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended Oune 30, 1984
TABLE OF CONTENTS
INTRODUCTORY SECTION;
Table of Contents i
Letter of Transmittal 1
Certificate of Conformance 8
List of City Officials 9
Organization Chart 10
FINANCIAL SECTION;
Auditors' Opinion 14
GENERAL PURPOSE FINANCIAL STATEMENTS;
Combined Balance Sheet - All Fund Types 15
and Account Groups
Combined Statement of Revenues, 17
Expenditures, and Changes in Fund
Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures 19
and Changes in Fund Balances - Budget and
Actual - All Governmental Fund Types
Combined Statement of Revenues, Expenses, and 21
Changes in Retained Earnings - All
Proprietary Fund Types
Combined Statement of Changes in Financial 22
Position - All Proprietary Fund Types
Notes to Combined Financial Statements 23
CITY OF CARLSBAD
TABLE OF CONTENTS, Continued
SUPPLEMENTAL DATA;
Governmental Funds:
General Fund:
Schedule of Revenues 43
Schedule of Expenditures 44
Special Revenue Funds:
Combining Balance Sheet 45
Combining Statement of Revenues, Expenditures, 47
and Changes in Fund Balances
Statement of Revenues, Expenditures and 49
Changes in Fund Balances - Budget and
Actual
Debt Service Funds:
Combining Balance Sheet 59
Combining Statement of Revenues, 61
Expenditures, and Changes in
Fund Balances
Statement of Revenues, Expenditures and 63
Changes in Fund Balances - Budget and
Actual
Capital Projects:
Combining Balance Sheet 67
Combining Statement of Revenues, 69
Expenditures, and Changes in
Fund Balances
Statement of Revenues, Expenditures and 71
Changes in Fund Balances - Budget and
Actual
11
3
HI
CITY OF CARLSBAD x *
TABLE OF CONTENTS, Continued 3
Proprietary Funds: ^
Ml
Enterprise Funds:
1Combining Balance Sheet 77 ^
Combining Statement of Revenues, 79 mExpenses, and Changes in ;
Retained Earnings **
Combining Statement of Changes in 80 Wf
Financial Position m
Internal Service Funds: m•.*,j
Combining Balance Sheet 81
Combining Statement of Revenues, 82 H
Expenses, and Changes in •*
Retained Earnings
Combining Statement of Changes in 83
Financial Position
Agency Funds:
Combining Statement of Changes in 84
Assets and Liabilities
m
s» M
Wm
111
CITY OF CARLSBAD
TABLE OF CONTENTS, Continued
STATISTICAL SECTION;
General Government Expenditures by Function 87
Last Ten Fiscal Years
General Revenues by Source, Last Ten Fiscal Years 89
Ratio of General Bonded Debt to Assessed Valuation and 91
Net Bonded Debt per Capita, Last Ten Fiscal Years
Computation of Legal Debt Margin 92
Schedule of Direct and Overlapping Bonded Debt 93
Ratio of Annual Debt Service for General Bonded Debt to 94-
Total General Expenditures, Last Ten Fiscal Years
Revenue Bond Coverage, Last Ten Fiscal Years 95
Demographic Statistics 96
Schedule of Assessed Valuation, Last Ten Fiscal Years 97
Construction and Business Activity, Last Ten Fiscal Years 99
Miscellaneous Statistical Information 100
Schedule of Principal Employers 101
IV
1200 ELM AVENUE • Ifc^. M TELEPHONE
CARLSBAD, CA 92008-1989 MHJ JM (619)438-5628 /**
Citp of Carlsbab
FINANCE DEPARTMENT
November 20,M|
Ml
Honorable Mayor, City Council,
and City Manager m
CITY OF CARLSBAD ^
Carlsbad, California
P|
We are pleased to present the 1983-84 Annual Financial Report of •!
the City of Carlsbad to the City Council and the City Manager.
This report, in compliance with the National Council on •!
Governmental Accounting (NCGA) statement #3 "Defining the ^
Governmental Reporting Entity", includes financial statements of
the City, the Housing Authority of the City of Carlsbad, the m
Parking and Building Authorities of the City of Carlsbad and the 5
Carlsbad Redevelopment Agency. This report also includes the m
opinion of our independent certified public accountants, Deloitte —
Haskins and Sells.
^ •*
In 1981-82 the Finance Department continued its effort to revise
prior reporting practices to conform with the standards set by M)
the National Council on Governmental Accounting (NCGA) . This yj
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. Subsequently, the CSMFO has awarded **
Carlsbad the award for outstanding financial reporting for the
City's 1981-82 financial report. By complying with the standards P
set by the NCGA and CSMFO, the City's annual report is a more Hi
useful document, both internally and externally. The format of
the report is designed to fairly set forth the financial position n
and results of operation of the City as measured by the financial *
activity within the various fund types. *"*
Accounting Systea and Budgetary Control
•0
There have been no major changes in the City's basic accounting
system for 1983-84. The City continues to operate on a modified "^
accrual basis for all governmental type funds. This means that M
revenues are recorded when received in cash unless susceptible to
accrual. Revenues that are accrued must be both measurable and M
collectible within the period or soon enough after the end of the
period to pay liabilities of the period. Expenditures, other
than interest on long term debt, are recorded when liabilities
are incurred.
The proprietary fund types (the water enterprise, sewer
enterprise and the internal service funds) utilize the accrual
method of accounting. Revenues and expenses are recorded when
earned and incurred, respectively.
Internal controls exist within the accounting system to ensure
safety of assets from misappropriation, unauthorized use or
disposition, 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 existence within the City's system are
sufficient to ensure in all material aspects both the safety of
the City's assets and the accuracy of the financial record
keeping system. The Finance Department's internal auditor has
conducted several reviews of internal controls on cash, fee
collections, payments for services and fixed assets to verify and
improve our existing control procedures.
Budgetary control is maintained through monthly reports on all
revenue and expenditure accounts as well as special reports
summarizing the financial position of the City. The City Council
has the authority to control the budget through adoption of a
formal budget at the beginning of each year and by amending the
budget as necessary through the year. Expenditures cannot exceed
budgeted figures. All appropriations expire at year end unless
specifically carried into the new fiscal year by Council action.
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 project funds. In 1983-84, revenue in
all governmental funds totaled $24.1 million. This represents an
increase of about $5.8 million or 31.8% over 1982-83 revenue as
shown below:
City of Carlsbad
Governmental Fund Types
Revenues 1983-84
Revenue Source
Taxes
Licenses & Permits
Intergovernmental
Revenue
Charges for Service
Fines & Forfeits
Interest Income
Miscellaenous
Revenue
TOTAL REVENUE
1982-83
Revenue
(In $1,000)
$ 10,733
771
2,551
2,452
231
1,397
179
$ 18,314
1983-84 Revenue
(In $1,000)
$12,644
2,452
1,778
4,748
256
1,528
726
$24,132
% of
Total
52.4%
10.1
7.4
19.7
1.1
6.3
3.0
100.0%
1983-84
over (under)
1982-83
$1,911
1,681
(773)
2,296
25
131
547
$5,818
Change
17.8%
218.0
(30.3)
93.6
10.8
8.6
305.6
31.8
1i
Revenue from taxes in 1983-84 increased by almost $2 million or ™
17.8% over 1982-83. Property tax revenue was up by almost f *»
$390,000 or 9%; sales tax revenue increased by $916,000 or
slightly more than 23% over last year; and transient occupancy
taxes were up by about $210,000 or 26%. Other tax revenues
followed the same trends seen in these major sources. The strong
improvement in tax collections was primarily due to the generally
improving California and national economic climate and the growth
experienced in the local North San Diego County area.
Licenses and permits were up by $1.7 million or 218% over 1982-83. *l
The primary factors in this growth were building permit revenues MI
and the City's license tax on new construction. Income from
building permits rose by $580,000 between 1982-83 and 1983-84; an **
increase of 118%. The City's license tax on new construction, a yj
tax paid by builders who will place new demands upon existing
City facilities, went into effect in late 1982-83. 1983-84
represents the first full year of existence for this source of ™
revenue. During 1983-84, $980,000 was received by the City in **
license taxes on new construction. Business licenses also moved
ahead by about $70,000 or 26% over 1982-83. The license and «|
permit types of revenue are particularly sensitive to changes in M»
the economy tied to new construction. Carlsbad has experienced a
very strong growth period during 1983-84 which appears to be m
continuing into 1984-85. J
Intergovernmental revenues dropped by about $770,000 or 30%
between 1982-83 and 1983-84. This drop is primarily due to the
completion of a major dredging project in 1982-83. Capital project "* <*i
grants in 1983-84 were substantially below the 1982-83 level.
1Charges for services have been increasingly important to local ^
governments in California since the passage of the Property Tax
Limitation Initiative (Proposition 13) in 1979. Charges for _
services include general fund sources such as developer fees, park B
or library fees and ambulance or public safety fees. Fees have been
adjusted in many areas to reflect the cost of providing services.
SBi
Expenditures from government fund types totaled $17.2 million in ft
1983-84. This is an increase of about $1.7 million or 11% over
1982-83. These expenditures are distributed as shown below: »
City of Carlsbad **
Governmental Fund Types
Expenditures 1983-84 If
1982-83 1983-84 Expenditures 1983-84 ^
Expenditures % of over (under) %
Expenditure Type (In $1,000) (In $1,000) Total 1982-83 Change *f
General Government $ 2,272 $ 2,562 14.9% $ 290 12.8% tti
Public Safety 5,286 5,983 34.8 697 13.2
Public Works 2,935 3,443 20.1 508 17.3 «
Culture & Recreation 2,573 2,896 16.9 323 12.6
Welfare 727 825 4.8 98 13.5 ~ '*
Debt Service 437 458 2.7 21 4.8
Capital Projects 1,233 1,003 5.8 (230) (18.7) ™
TOTAL EXPENDITURES $ 15,463 $17,170 100.0% $1,707 11.0 •*
The reduced water sales revenue shown in the above table is
directly related to the water service agreement with CRMWD. As
previously described, revenue from water consumption charges are
now passed through to CRMWD.
Revenue from sewer service charges totaled $1.3 million in 1983-84
compared to $960,000 in 1982-83. This increase of 35% is due to
three factors. First, the City experienced a sewer rate increase
during 1983-84. Second, the agreement with CRMWD gave the City
the ability to more closely control all utility services within
the City. The merging of the City and CRMWD data bases allowed
the City to substantially reduce the number of water customers
who had previously escaped paying sewer fees. Third, the City
has been growing at a very rapid pace. During the majority of
1983-84, the City utility users base was rising at a rate of 2%
per month.
This rapid growth in utility users can also be seen in the growth
in the major facility fee revenue. During 1983-84, the City
collected $1.7 million in major facility fees compared to
$657,000 in 1982-83, an increase of over 150%. These fees are
paid by developers as they connect new buildings or structures to
the water and sewer systems.
Revenues from other charges for services and reimbursed
expenditures primarily represent the activity of the City's
internal service funds. The changes in revenues indicate the
increased charges to user departments for insurance or vehicle
maintenance services.
Expenses in the proprietary funds totaled $4 million for 1983-84
compared to $3.7 million for 1982-83, an increase of about
$344,000 or 9.4%. These expenses are summarized below:
City of Carlsbad
Proprietary Fund Types
Expenses 1983-84
1982-83
Expenses
Operating Expense (In
Personnel Services $
Office Expense
Repairs & Maint.
Professional Svcs.
Insurance
Purchased Water
Capital Outlay/Projects
Fuel
Claims
Other Expenses
TOTAL EXPENSES $
$1,000)
914
20
328
538
102
926
198
402
250
3^678
1983-84 Expenses
% of
(In $1,000)
$ 912
53
420
606
18
577
52
187
648
549
$4,022
Total
22.8%
1.3
10.4
15.1
0.4
14.3
1.3
4.6
16.1
13.7
100.0%
1983-84
over (under)
1982-83
$ (2)
33
92
68
(84)
(349)
52
(11)
246
299
$ 344
%
Change
(0.2)%
165.0
28.0
12.6
(82.4)
(37.7)
(5.6)
61.2
119.6
9.4
The City had no major changes in operations during 1983-84- which
would cause increased or decreased expenditure levels. The
majority of the increase in expenditures in governmental funds is
due to general cost increases and minor changes in staffing
levels, offset by reduced spending for capital projects.
Spending for capital projects will increase significantly in
1984-85 as several major projects enter the construction phase.
The City's Public Safety/Service Center, major storm drain
projects and several street projects will begin construction in
the first part of 1984-85.
Proprietary Funds
This category includes the water and sewer enterprise funds as
well as the workers' compensation and general liability self-
insurance internal service funds and the central garage internal
service fund.
During 1983-84, the City began to implement the water service
agreement between the City and the Costa Real Municipal Water
District (CRMWD). Under this agreement the City becomes the
water retailer to all residents of the City while CRMWD becomes
the wholesaler. CRMWD is also responsible for the construction
and maintenance of major water lines, dams, reservoirs or other
major facilities. The City now bills approximately 11,000 water
customers using 300 million gallons each month. CRMWD absorbed
the City's water maintenance crew (7 employees) into their
organization during 1983-84. Revenue from water sales is shared
between the City and CRMWD; the City receiving 100% of the ready
to serve or flat monthly fee and CRMWD receiving 100% of the
water consumption charge based on units of water used.
Proprietary Fund Revenues totaled $5.4 million in 1983-84
compared to $4.2 million in 1982-83, an increase of $1.2 million
or 30%.
City of Carlsbad
Proprietary Fund Type
Revenue 1983-84
1982-83 1983-84 Revenue 1983-84
Revenue % of over (under) %
Revenue Source (In $1,000) (In $1,000) Total 1982-83 Change
Metered Water Sales $ 1,606 $ 1,309 24.1% 1(197)(18.5)%
Sewer Service Charges 961 1,297 23.9 336 35.0
Sewer Connection Fees 657 1,663 30.6 1,006 153.1
Other Charges for
Services 616 844 15.5 228 37.0
Reimbursed
Expenditures 327 322 5.9 (5) (1.5)
TOTAL OPER. REVENUE $ 4,167 $ 5,435 100.0% $ 1,268 30.4
Major changes occurred in the water funds cost for purchased
water which reflects a decline of about $350,000. This reduction
is a direct result of the agreement with CRMWD described above.
Other major changes are found in claims expenses where the City
records costs of the workers' compensation and liability self-
insurance activities. Total expenses rose from $402,000 in 1982-
83 to $648,000 in 1983-84, an increase of 61%.
The increase in repairs and maintenance and professional
services is due to additional costs associated with operating
the Encina Water Pollution Control facility and the City's sewer
system which provides sewer service to the City's 40,000
residents.
Total revenues in the enterprise funds were sufficient to
support all expenses of the respective operations. In the
internal service funds, both the workers' compensation and
liability self insurance funds recorded losses for the year. At
Oune 30, 1984, the City contributed $150,000 to the liability
fund to help offset this loss.
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 1983-84 amounted
to $333,000.
The General Liability Self-Insurance Fund was established near
the end of fiscal 1980-81. This year represents the third full
year of operation under the liability self-insurance program.
During 1983-84, claims totaling $314,000 were paid out of this
fund. Contributions of $150,000 were made from the General Fund
to support the program and to bring the 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 City Treasurer
earned about $2.1 million in interest on investments in all fund
types from instruments earning from 7.5% to 12.5%. This
represents an increase of about 15% over the 1982-83 total of
$1.8 million. Funds are invested in various types of notes and
certificates and are fully insured or collateralized. At Oune
30, 1984, the treasurer had 97% of all available funds invested.
Bonded Debt
The City's total outstanding general bonded debt as of Oune 30,
1984 was $3.8 million or about $95 per capita. The City had
water revenue bonds outstanding in the amount of $1,027,000. The
following report includes detailed listings of debt service
requirements and other pertinent information on the City's debt
administration activities.
Economic Trends
Carlsbad has experienced a very strong recovery from the
relatively weak economy of early and mid 1982-83. In the last
part of 1982-83, the City's retailers and builders began to show
signs of recovery which accelerated throughout 1983-84 and
continued into 1984-85. The City can expect strong tax revenues
in sales tax, property tax and transient occupancy tax for the
1984-85 fiscal year. In addition, the rate of building in
Carlsbad has continued to grow throughout 1983-84 and should
continue at a high level for at least the first half of 1984-85.
The addition of several major hotels to the downtown area and
along Interstate 5 will improve the City's transient tax revenue
base substantially. The early part of 1984-85 shows no signs of
slowing for the Carlsbad economy.
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 wish to express our appreciation to the staff of
Deloitte Haskins and Sells, the Finance Department and Central
Services for their dedicated efforts. Our appreciation also goes
to both City management and the Council for their support of the
Finance staff and this project.
/'
Respectfully Submitted,
s- — .; ;. N-
I • , V- V\ ;Oames-F. Elliott
Fiharice Director
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CITY OF CARLSBAD
ELECTED CITY OFFICIALS
Mary H. Casler, Mayor
Claude A. Lewis, Council Member
Ann 0. Kulchln, Council Member
Richard 0. Chick, Council Member
Mark V. Pettine, Council Member
Aletha L. Rautenkranz, City Clerk
William C. Esterline, City Treasurer
ADMINISTRATION AND OEPARTMEMT HEADS
Frank Aleshire, City Manager
Frank Mannen, Assistant City Manager/Administration
Vincent F. Biondo, Or., City Attorney
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Ronald Beckman, City Engineer
David Bradstreet, Parks and.
Recreation Director
Games F. Elliott, Finance Director
Ruth Flethcer, Purchasing Officer
Roger Greer, Utilities/Maintenance
Director
Vincent Oimno, Police Chief
Clifford Lange, Library Director
Martin Orenyak, Building and Planning
Director
Jerome No. Pieti, Personnel Director
Oames Thompson, Fire Chief
v
CHAIRPERSONS, COMMISSIONS AND BOARDS
David Bates
Robert (Andy) Borden
Richard Goodwin
Oeff Punches
Sharon Schram
Scott Wright
Personnel Board
Building Authority
Parking Authority
Traffic Safety Commission
Library Board
Parks and Recreation Commission
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13
Deloitte
Haskins Sells
Suite 1900
701 "B" Street
San Diego, California 92101-8198
(619) 232-6500
TWX 910-335-1573
AUDITORS' OPINION
Honorable City Council
City of Carlsbad, California
We have examined the combined financial statements of the City
of Carlsbad as of June 30, 1984 and for the year then ended, as
listed in the foregoing 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 City of
Carlsbad at June 30, 1984, and the results of its operations
and the changes in financial position of its 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 after giving retroactive effect
to the change, with which we concur, in the method of
accounting for compensated absences as described in Note 2 to
the financial statements.
Our examination also comprehended the statements and schedules
as of and for the year ended June 30, 1984 as listed in the
supplemental data section of the foregoing table of contents.
In our opinion, such supplemental statements and schedules,
when considered in relation to the combined financial
statements present fairly, in all material respects, the
information shown therein.
October 4, 1984
14
PI
H
CITY OF CARLSBAD
Combined Balance Sheet
All Fund Types 4 Account Groups
Oune 30, 198*
Governmental Fund Types
Assets;
Cash and investments
(Note 5)
Special Debt Capital
General Revenue Service Projects
$ 684,065 $ 4,730,653 $1,566,201 $11,795,377
Receivables:
Taxes
Accounts
Accrued interest
Due from other governments
Advances to other funds
Inventory, at cost
Prepaid expenses
Restricted assets:
Cash & investments (Note 5)
Accrued Interest
Investment in sewage treat, fac.
Property, plant and equipment
(net of accumulated
depreciation) (Note 6)
Amount available in debt
service funds
Amount to be provided for retire-
ment of general long-term debt
452,491
411,404
203,284
573,946
7,589
43,500
Total assets
Liabilities;
Accounts payable $ 468,704
Accrued wages payable 1,002,022
Due to other funds —
Advances from other funds —
Advances from other governments —
Deposits payable —
Deferred compensation
payable (Note 13) —
Prepaid annual contributions —
Estimated claims payable —
Payable from restricted assets:
Accrued interest payable —
Revenue bonds payable —
General obligation bonds payable
(Note 7)
Revenue bonds payable (net of
unamortized discount of $7,404
and current portion - Note 7) —
Deferred revenue —
Obligations under capital lease
(Note 8)
Other payables —
Total liabilities 1,470,726
Fund Equity:
Contributed capital —
Investment in general fixed
assets —
Retain, earn (deficit)(Note 11)
Fund balances (Note 11): 905,553
Total fund equity 905,553
Total liabilities and
fund equity
17,275
12
5,827
48,926
59,798
m
trf
m
mt
mm
34,945
$ 2,376,279 $4,862,491 $1,601,146 $11,795,377
1H
m
ti
mm
$ 205,812 $ 19,112
3,014
4,180
98,940 ---
71,071
1,065
1,939
569,766
§;!&
m
•M
383,017 19,112 572,770
m
m
4,479,474 1,582,034 11,222,607
4.479,474 1,582.034 11,222,607
$ 2,376,279 $4,862,491 $1,601,146 $11,795,377
See accompanying notes to combined financial statements m
15 Ii
Proprietary
Enterprise
$5,329,441
1,060,790
105,295
6,392
618,525
12,998,980
10,532,738
...
...
$30,652,161
$ 473,819
12,516
88,512
...
28 ,438
125,000
---
89ft, 596
2,563,778
:::
4,186,659
18,812,487
...
7,653,015
26,465,502
Fund Types
Internal
Service
$1,739,697
643
— ™ —
588,561
...
...
$2,328,901
$ 90,890
4,862
487,410
—
---
...
:::
583,162
2,095,456
...
(349,717)
1,745,739
Fiduciary Totals
Fund Type Account Groups (Memorandum Only)
General General Long- dune 30, June 30,
Agency Fixed Assets Term Debt 1984 1983
$2,389,004 — .— $28,234,438 $18,531,357
469,766 154,805
1,472,206 1,114,154
244,699 248,872
48,926 109,080
573,946 374,166
112,884 119,840
109,690 325,488
618,525 556,351
10,703— 12,998,980
$18,496,987 — 29,618,286 40,692,992
$1,582,034 1,582,034 1,462,841
2,802,007 2,802,007 3,410,533
$2,389,004 $18,496,987 $4,384,041 $78,886,387 $67,111,182
--- $ 1,259,402 $ 994,223
1,024,353 272,443
109,080
573,946 374,166
98,940 87,199$2,064,561 --- -— 2,153,073 1,755,113
324,443 — .— 324,443 228,576
71,071 63,966
487,410 299,643
28,438
125,000 125,000
$3,800,000 3,800,000 3,915,000
394,596 893,362
2,563,778
473,598 473,598 793,623
110,443 110,443 164,751
2,389,004 — 4,384,041 13,988,491 10,076,145
--- 20,907,943 23,095,399
18,496,987 --- 18,496,987 16,562,657
7,303,298 5,505,309
18,189,668 11,871,672
18,496,987 — 64,897,896 57,035,037
$30,652,161 $2,328,901 $2,389,004 $18,496,987 $4,384,041 $78,886,387 $67,111,182
16
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Ail Governmental Fund Types
Year ended June 30, 1984
Special
General Revenue
Revenues:
Taxes $11,392,335 $1,063,313
Licenses and permits 2,451,817 —
Intergovernmental revenues 2,491 1,775,096
Charges for services 2,182,267 —
Fines and forfeits 256,471
Interest income 565,281 451,635
Miscellaneous revenues 55,365 12,637
Total revenues 16,906,027 3,302,681
Expenditures:
General government 2,534,868 11,850
Public safety 5,813,451
Public works 1,907,416 1,501,152
Welfare —- 825,236
Culture and recreation 2,627,307 136,814
Capital projects — 364,059
Debt service expenditures:
Principal retirement — —
Interest and fiscal charges — —
Total expenditures 12,883,042 2,839,111
Excess (deficiency) of revenues
over expenditures 4,022,985 463,570
Other financing sources (uses):
Operating transfers in — —
Operating transfers (out) (348,400)
Total other financing sources (uses) (348,400) —
Excess of revenues and other sources
over expenditures and other uses 3,674,585 463,570
Fund balances at beginning of year as
previously reported 703,569 4,558,904
Prior period adjustment (Note 3) 62,240 —
Fund balances at beginning of year as adjusted 765,809 4,558,904
Cumulative effect of changes in accounting
principle (Note 2) (492,296)
Residual equity transfers in 543,000 —
Residual equity transfers (3,585,545) (543,000)
Fund balances at end of year $ 905,553 $4,479,474
See accompanying notes to combined financial statements
17
Totals
(Memorandum Only)
Debt
Service
$ 109,295
138,136
247, 431
4,491
115,000
243,047
362,538
(115,107)
348 ,400
348,400
233,293
1,462,841
(114,100)
1,348,741
Capital
Projects
$ 79,179
2,565,684
387,040
310,243
3,342,146
639,202
639,202
2,702,944
—
._.
2,702,944
5,146,358
(62,240)
5,084,118
Oune 30,
1984
$12,644,122
2,451,817
1,777,587
4,747,951
256,471
1,542,092
378,245
23,798,285
2,551,209
5,813,451
3,408,568
825,236
2,764,121
1,003,261
115,000
243,047
16,723,893
7,074,392
348,400
(348,400)
. — _
7,074,392
11,871,672
(114JOO)
11,757,572
June 30,
1983
$10,732,787
771 ,240
2,551,262
2,451,708
231,086
1,396,896
179,271
18,314,250
2,272,174
5,285,609
2,935,279
727,155
2,573,014
1,233,048
185,000
252,147
15,463,426
2,850,824
514,570
(778,053)
(263,483)
2,587,341
9,153,705
130,626
9,284,331
(492,296)
3,435,545 3,978,545
— (4,128,545)
$ 1,582,034 $ 11,222,607 $18,189,668 $11,871,672
18
Combined Statement of Revenues, Expenditures and
Changes In Fund Balances - Budget 4 Actual
All Governmental Fund Types
Year ended Oune 30, 1984
General Fund
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
Debt service expenditures:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess of revenues over
expenditures
Other financing sources (uses):
Operating Transfers In (out)
Total other financing sources(us.
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 3)
Fund balances at beginning of year
as adjusted
Cumulative effect of change In
accounting principle (Note 2)
Residual equity transfers in (out)
Fund balances at end of year
See accompanying notes to combined financial statements
Budget
S 10,474,000
1,590,000
1,449,300
265,000
700,000
78,000
14,556,300
3,173,429
6,042,943
2,228,944
2,786,468
14,231,784
324,516
(348,400)
is) (348,400)
(23,884)
703,569
703,569
...
...
$ 679,685
Actual
S 11,392,335
2,451,817
2,491
2,182,267
256,471
565,281
55,365
16,906,027
2,534,868
5,813,451
1,907,416
2,627,307
12,883,042
4,022,985
(348,400)
(348,400)
3,674,585
703,569
62,240
765,809
(492,296)
(3,042,545)
$ 905,553
Variance
favorable
(unfavorable)
S 918,335
861,817
2,491
732,967
(8,529)
(134,719)
(22,635)
2,349,727
638,561
229,492
321,528
159,161
1,348,742
3,698,469
3,698,469
62,240
62,240
(492,296)
(3,042,545)
S 225,868
Special Revenue Funds
Budget
S 973,544
2,614,320
94,000
3,671,864
3,851,434
789,982
255,915
2,479,875
7,377,206
(3,705,342)
Actual
S 1,063,313
1,775,096
451,635
12,637
3,302,681
11,850
1,501,152
825,236
136,814
364,059
2,839,111
463,570
Variance
favorable
(unfavorable )
$ 89,769
(839,224)
367,635
12,637
(369,183)
(11,850)
2,350,282
(35,254)
119,101
2,115,816
4,538,095
4,168,912
...
(3,705,342)
4,558,904
4,558,904
463, 570
4,558,904
4,558,904
4,168,912
...
...
...
(543.000)
S 310,562
(543,000)
S 4,479,474
...
S 4,168,912
19
Debt Service Fundi
Budget Actual
$ 100,000 S 109,29$
Variance
favorable
(unfavorable)
$ 9,295
Capital Project Fund*
Budget Actual
80,000 $ 79,179
Variance
favorable
(unfavorable)
$ (8,821)
4,491
(3,719)
5.576
2,497,000 2,565,664 68,684
387,040 387,040
— 310.243 310.243
2.585.000 3.342.146
5,249,632 ' 639,202 4,619,430
115,000
243.386
115,000
243.047 339
339
5.915
1.348.741
$ 1,690,219 $ 1,582,034 $ (108,195)
5.249.632 639.202 4.610.430
(2.664.632) 2.702.944 5.367.576
(2.664.632) 2.072.944
5,146,358 5,146,358
«- (62.240)
5.146.358 5.084.118
3.435.545
5.367.576
(62.240)
(62.240)
3.435.545
$ 2,481,726 $ 11,222,607 $ 8,740,881
20
CITY OF CARLSBAD
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings - Ali Proprietary Fund Types
Year ended June 30, 1984
Totals
(Memorandum Oniy)
Operating revenues:
Metered water sales $ 1,309,379
Sewer service charges 1,160,834
Sewer construction fees 1,799,010
Other charges for services 129,437
Reimbursed expenditures —
Total operating revenue 4,398,660
Operating expenses:
Personnel services 723,394
Office expenses 51,666
Repairs and maintenance 361,649
Professional services 638,150
Insurance 18,331
Purchased water 577,081
Loss on disposal of property 16,092
Bad debt expense 56,021
Depreciation and amortization 256,250
Fuel
Supplies and parts —
Claims expense —
Other operating charges -—
Total operating expenses 2,698,634
Operating income (loss) 1,700,026
Non-operating revenues (expenses):
Interest income 403,675
Interest expense and fiscal
agent fees (56,875)
Sale of property ---•
Total non-operating
revenues 346,800
Net income (loss) before
operating transfers 2,046,826
Operating transfers in —
Net income (loss) 2,046.826
Retained earnings (deficit) at
beginning of year 5,574,572
Prior period adjustments (note 3) 31,617
Retained earnings (deficit) at
beginning of year as adjusted 5,606,189
Retained earnings (deficit) at
end of year (note 11) $ 7,653,015
Internal
Service
...
$ 714,279
321,648
1,035,927
188,554
1,246
77,208
...
...___
...
145,452
187,316
72,137
648,191
2,784
1,322,888
(286,961)
135,896
...
18,134
154,030
(132,931)
(132,931)
(69,263)
(147,523)
(216,786)
$ (349,717)
3une 30,
1984
$ 1,309,379 $
1,160,834
1,799,010
843,716
321,648
5,434,587
911,948
52,912
438,857
638,150
18,331
577,081
16,092
56,021
401 ,702
187,316
72,137
648,191
2,784
4,021,522
1,413,065
539,571
(56,875)
18,134
500,830
1,913,895
...
1,913,895
5,505,309
(115,906)
5,389,403
$ 7,303,298 $
June 30,
1983
1,606,202
961,217
657,370
615,506
326,906
4,167,201
914,233
21,468
328,142
537,524
102,322
926,347
...
159,396
198,094
84,820
402,854
2,973
3,678,173
489,028
404,991
(64,492)
5,764
346,263
83^29J
15,553^
850,844
4,654,465
...
4,654,465
5,505,309
See accompanying notes to combined financial statements
21
CITY OF CARLSBAD
Combined Statement of Changes in Financial Position
AH Proprietary Fund Types
Year ended Oune 30, 1984
! Sources of working capital:
Operations
Net income (loss) $
Less gain on sale of property
Items not requiring working capital:
Depreciation and amortization
' Loss on disposal of property
i Working capital provided by
operations
Proceeds from sale of property
Contribution from other funds
I
Total sources of working capital
Uses of working capital:
Acquisition of property, plant, and
equipment
Decrease in long-term revenue bonds payable
Net decrease (increase) in other restricted
assets and related liabilities
Reduction of deferred revenue
Total uses of working capital
Net increase in working capital
Elements of net increase (decrease) in
unrestricted working capital:
Cash and investments
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
2,046,826
256,250
16.092
2,319,168
12,727
2,331,895
36,735
23,033
136,000
195,768
$ 2,136,127
$1,902,569
608,591
(28,083)
(7,107)
(169,146)
(152,890)
(8,014)
(9.793)
$ 2,136,127
Total
(Memorandum Only)
Internal
Service
$(132,931)
(18,134)
145,452
(5,613)
36,952
156,439
187,778
161,337
161,337
$ 26,441
$ 275,827 $
(6,722)
(54,247)
(650)
(187,767)
$ 26,441 $
dune 30,
1984
$1,913,895
(18,134)
401,702
16,092
2,313,555
36,952
169,166
2,519,673
198,072
23,033
136,000
357,105
$2,162,568
2,178,396
608,591
(34,805)
(7,107)
(169,146)
(207,137)
(8,664)
(187,767)
(9,793)
2,162,568
Oune 30,
1983
$ 850,844
159,396
1,010,240
1,065,609
2,075,849
946,818
115,000
(809,244)
252,574
$1,823,275
$1,984,484
(10,961)
15,259
6,970
170,221
(257,638)
3,570
(92,082)
12,397
(8,945)
$1,823,275
>e accompanying notes to combined financial statements
22
CITY OF CARLSBAD
Notes to Combined Financial Statements
HIOune 30, 1984- ^j
(1) Summary of Significant Accounting Policies »1 2 3, ||
The accounting policies of the City of Carlsbad, California conform to
generally accepted accounting principles for governmental units. The |JJ
following is a summary of the more significant policies: •
(a) Description of the Reporting Entity m
i|
The financial statements of the City of Carlsbad include the financial
activities of the City, the Housing Authority of the City of Carlsbad,
the Parking and Building Authorities of the City of Carlsbad and the ™
Carlsbad Redevelopment Agency. Their financial operations are closely •
related and the City Council has a continuing oversight responsibility
over the entities. The oversight responsibility is determined on the l|
basis of budget adoption, taxing authority, funding and appointment of ^
the governing board.
(b) Fund Accounting y|
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, expenditures or expenses. The various funds and
account groups are summarized by type in the financial statements.
Fund types and account groups used by the City are 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
fund. The fund is utilized to account for payments made for general
operating expenses and capital improvement costs which are not paid
through other funds.
Special Revenue Funds
The Special Revenue Funds are used to account for revenues derived
from specific sources which are restricted by law or administrative
regulation to expenditures for specified purposes.
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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).
PROPRIETARY FUNDS
Enterprise Funds
The Water Utility Fund and the Sewer Enterprise Fund are used to
account for operations that are financed and operated in a manner
similar to a 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 charges.
Internal Service Funds
Internal Service Funds are utilized to finance and account for act iv-
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.
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.
24
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
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-Term 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 leases.
(c) Measurement Focus and Basis of Accounting
The proprietary (enterprise and internal service) fund types are
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
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.
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 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 are recorded when liabilities are incurred, except that
interest on long term debt is considered an expenditure in the period
in which it is budgeted.
The accrual basis of accounting is followed by the proprietary funds.
25
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(d) Investments
Investments are stated at cost, which approximates market.
(e) Inventories
Inventories within the various fund types consist of materials and
supplies which are valued at the lower of average cost or market and
are recorded as expenses when consumed.
(f) Compensated Absences
Vacation pay is payable to employees at the time used or upon
termination of employment. Vacation days are cumulative up to a
maximum of 29 days in any one year for miscellaneous employees and
safety employees and 40 days in any one year for management employees.
Sick leave accrued but unused is cumulative from year-to-year. For
employees within the merit system, sick leave may not be taken as
vacation or compensated for in cash. Permanent miscellaneous
employees (as defined) accumulating and maintaining 100 hours of sick
leave can convert up to 12 days of sick leave to vacation at a ratio
of three sick leave days to one vacation day. Upon retirement, such
employees may also convert accrued and unused sick leave to extend
service time at the rate of 25 sick days to one month of service
time.
(g) Budgetary Data
The City follows these procedures in establishing the budgetary data
reflected in the financial statements:
1. During May or Oune, the City Manager submits to the City Council a
proposed operating budget for all funds of the City for the fiscal
year commencing the following duly 1. The budget includes
proposed expenditures and estimated revenues on a line item
basis. '
2. Public hearings are conducted at City Council meetings to obtain
citizens' comments during Oune. A Citizens Budget Reveiw
Committee facilitates this process.
3. Prior to Ouly 1, the budget is legally enacted through passage of
an appropriation resolution.
4. The City Manager is authorized to make transfers of appropriated
amounts within a fund and function for up to $10,000. Revisions
that alter the total appropriations of any fund or function must
be approved by the City Council. A mid-year budget review is
conducted each year. Any major changes to the adopted budget are
approved by the City Council at that time.
26
Ml
CITY OF CARLSBAD ^
r" J
Notes to Combined Financial Statement, Continued "W*i
M
5. Monthly budget control reports are generated to assist the Finance
Department and other department heads in controlling the budget. JMJ
Ml6. Budgets for the General, Special Revenue, Debt Service, and
Capital Projects Fund are adopted on a basis consistent with
generally accepted accounting principles. Budgeted amounts if
contained within this report are as amended by the City Council. J
(h) Self-Insurance H|
MiThe City is self-insured for general liability and workers'
compensation claims up to $50,000 and $100,000 per occurrence, .
respectively, with a yearly maximum aggregate liability of $250,000 8
and $10,000,000, respectively, and purchases outside insurance "
coverage for individual claims in excess of that amount.
(i) Memorandum Only Totals •
Columns in the accompanying financial statements captioned "Totals fj
(Memorandum Only)" are presented as additional analytical data and do H
not present financial statements in accordance with generally accepted
accounting principles.
(j) Encumbrances **
Encumbrances outstanding at year end are reported as reservations of "4
fund balances of the governmental funds since they do not constitute wj
expenditures or liabilities.
(k) Fixed Assets - Proprietary Funds J
Fixed assets owned by proprietary funds are capitalized at historical
cost or fair market value at date contributed. Depreciation is ™
charged to operations using a straight-line method based on the "i
estimated useful life of the asset. The estimated useful lives of the
assets are as follows: II
J
Buildings 10-25 years
Structures and improvements 50 years
Sewer, sewer lines and wells 4-0 years
Equipment 4-10 years
Wells, reservoirs and dams 10-100 years
Transmission and distribution lines 4-0-70 years ^
Filters and pumps 10-50 years «•
Fire hydrants 50 years
•H
(1) Unbilled Service Receivables ______________——^—
Unbilled service receivables in proprietary funds are reflected in
accounts receivables at year end with a corresponding increase in i
revenues. "*
27 "S
•i
CITY OF CARLSBAD
Notes to Combined Financial Statement, Continued
(m) Investment in Sewer Facility
The City has an ownership of approximately 25% in a joint sewer system
known as the Encina Water Pollution Control Facility (the Facility).
The City accounts for such investment on a cost basis as it does not
have significant influence over the management or the operations of
the Facility. The Facility charges the City usage fees on a cost-
reimbursement basis; such charges totaled $564,570 and are classified
as Professional Services expense.
(n) Deferred Revenue
The deferred revenue balances of the Enterprise Fund relate to
deposits or in-kind pre-payments for services to be rendered (e.g.,
sewer installation, etc.).
(2) Accounting Changes
Effective duly 1, 1983, the City changed its method of accounting for
compensated absences in conformance with NCGA statement 4. The accrual for
compensated absences at 3une 30, 1984 totals $532,679.
(3) Prior Period Adjustments
General Fund and Capital Project Fund
In prior years, the City had not recorded interest on advances from
the General Fund to the Redevelopment Project (Capital Projects Fund).
The effect on beginning fund balance is $62,240.
Sewer Enterprise Fund
Retained Contributed
Earnings Capital
During the fiscal year ended Oune 30, $ 131,385 $(2,604,423)
1982, the City recorded a non-monetary
exchange of future sewer installation
credits for a sewage treatment facility
as an increase to contributed capital
instead of deferred revenue [see note (1)
(n)].
In prior years, the City recorded (100,278) 100,278
depreciation expense as a reduction of
contributed capital.
Net prior period adjustment $ 31,107 $(27504,145)
28
CITY OF CARLSBAD
Notes to Combined Financial Statement, Continued
Internal Service Fund
In the prior year, the City recorded
depreciation expense related to the
Central Garage Internal Service Fund as
a reduction of Contributed Capital.
Contributed
Capital
$147,523
Debt Service Funds
Building
Authority
Parking
Authority
$78,100
Fund
Balance
$114,100In the prior year, the $36,000
City had improperly recorded ^ ' • " =—— ===B_==
amounts related to deferred
revenue direct to fund
balance.
(4) Segment Information for Enterprise Funds
The City maintains two Enterprise Funds which provide water and sewer
services. Segment information for the year ended 3une 30, 19134 was as
follows:
Total
Water Sewer Enterprise
Fund
Sewer
Fund Funds
Operating revenues
Depreciation and amortization
expenses
Operating income or (loss)
Net income
Current capital:
Contributions
Property, plant and equipment
(at cost):
Additions
Deletions
Net working capital
Bonds payable from operating
revenues
Total Assets
Total Equity
$ 1,414,332
137,506
(142,841)
58,516
2,423,080
$ 2,984,328 $ 4,398,660
118,744
1,842,867
1,988,310
256,250
1,700,026
2,046,826
16,389,407 18,812,487
11,270
93,588
81 ,845
25,465
3,045,226
36,735
93,588
5,927,071
894,596 — 894,596
8,440,713 22,211,448 30,652,161
6,833,047 19,632,455 26,465,502
29
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(5) Cash and Investments
A summary of cash and investments as of 3une 30, 1984- follows:
Cash
Certificates of Deposit
Miscellaneous Investments
Banker's Acceptance Notes
Federal Agency Notes
Interest Rates
9.75 - 12.50%
9.20 - 9.70%
10.97 - 11.90%
9.30 - 11.35%
Cost
$ 761,653
16,154,687
4,843,953
5,828,126
1,264,544
$28,852,963
(6) Fixed Assets
A summary of changes in general fixed assets follows:
Deletions
Land
Buildings
Other
Improvements
Furniture and
Equipment
TOTAL
A summary of Proprietary
1984 follows:
Balance
Duly 1, 1983
$ 5,628,455
3,241,767
s 6,249,276
|
1,443,159
$ 16,562,657
Additions
$ 28,227
139,359
1,725,351
332,451
$2,225,388
Transfer
Internal
Service Fund
$ 6,439
$ 6,439
To
Sewer
Ent. Fund
$ 12,727
$ 12,727
Other
Deductions
$ 271,892
$ 271,892
Balance
June 30, 1984
$ 5,656,682
3,381,126
7,974,627
1,484,552
$ 18,496,987
Fund property, plant and equipment at dune 30,
Land, water rights, rights of way
Buildings
Structures and improvements
Wells, reservoirs and dams
Transmission and distri-
Transmission and distribution lines
Sewer, sewer lines and wells
Purification, pumps and
booster stations
Fire hydrants
Equipment and vehicles
Fire protection services
Construction in progress
TOTAL
Less Accumulated Depreciation
TOTAL
Total
Enterprise
Funds
$ 459,206
37,964
37,948
1,289,853
4,022,304
4,420,783
147,349
364,969
588,938
5,759
2,676,618
14,051,691
(3,518,953)
$ 10,532,738
Total
Internal
Service Funds
Total
Proprietary
Funds
™5 459,206
37,964
37,948
1,289,853
4,022,304
4,420,783
147,349
364,969
$ 1,350,218 1,939,156
5,759
— 2,676,618
1,350,218 15,401,909
(761,657) (4,280,610)
$ 588,561 $11,121,299
30
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Long-Term Debt
A summary of Revenue Bonds Payable - Proprietary (Water Enterprise) Fund
is as follows:
Balance
June 30,
1958 Waterworks Revenue Bonds, principal due in amounts ranging
from $40,000 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%) $ 217,000
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% to 3.875%) 185,000
1970 Waterworks Revenue Bonds, principal due in amounts ranging
from $75,000 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 6.0% to 6.9%) 625,000
Total revenue bonds payable 1,027,000
Less unamortized discount (7,404)
Less current portion (125,000)
Total $ 894,596
Principal maturities on the Revenue Bonds Payable as of June 30, 1984 are as
follows:
Fiscal Year
1984-85
1985-86
1986-87
1987-88
1988-89
Thereafter
TOTAL
$
$1
125,000
130,000
140,000
150,000
157,000
325^000
,027,000
A summary of changes in general long-term debt (serviced by the City's Debt
Service Fund) of the City is as follows:
Balance Balance
July 1, 1983 Additions Payments June 30, 1984
1962 Series A General Obligation
Sewer Bonds, principal due in
amounts ranging from $40,000
to $50,000 on duly 1 of each
year through 1988 (Interest
is payable on January 1 and
duly 1 at 3.5% per annum) $ 210,000 --- --- $ 210,000
31
— CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Balance Balance
** July 1, 1983 Additions Payments June 30, 1984
"•" 1962 Series B General Obligation
mt Sewer Bonds, principal due in
amounts ranging from $4-0,000
„, to $100,000 on July 1 of each
year through 1991 (Interest
** is payable on January 1 and
Duly 1 at rates varying from
*" 3.5% to 3.6%) $ 480,000 --- --- $ 480,000
**" 1962 Series C General Obligation
Sewer Bonds, principal due in
*"" amounts ranging from $20,000
«• 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%) 185,000 — --- 185,000
•*• 1966 Library General Obligation
mi Bonds, principal due in amounts
ranging from $15,000 to $25,000
on July 1 of each year through
1992 (Interest is payable on
"** January 1 and July 1 at 4.5%
^ per annum) 155,000 --- $ 15,000 140,000
1967 Carlsbad Building Authority
""" Revenue Bonds, principal due in
^ amounts ranging from $20,000 to
$35,000 on December 15 of each
•• year through 1993 (Interest is
payable on December 15 at 5.25%
— per annum) 260,000 --- 20,000 240,000
*" 1969 Carlsbad Parking Authority
Revenue Bonds, principal due
*™ in amounts ranging from $50,000
^ to $125,000 on October 1 of each
year through 1996 (Interest is
«*» payable on October 1 and April
1 at rates varying from 6.0%
m to 6.4%) 1,125,000 --- 50,000 1,075,000
** 1981 Carlsbad Parking Authority
Revenue Bonds, principal due in
amounts ranging from $40,000 to
„, $150,000 on February 1 of each
year through 2001 (Interest is
payable on August 1 and
February 1 at 8% per annum) 1,500,000 --- 30,000 1,470,000
m TOTAL $3,915,000 — $115,000 $3,800,000
32
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Debt Service requirements to maturity:
Schedule of 1962 General Obligation
Sewer Bonds, Series A, Debt Service to Maturity
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
TOTAL
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
TOTAL
Interest
Due Duly 1
$ 3,675
2,975
2,275
1,575
875
$ 11,375
Sewer
Interest
Due July 1
$ 8,580
7,880
7,180
6,480
5,760
5,040
3,420
1,800
$ 46,140
Sewer
Interest
Due July 1
$ 3,437
3,078
2,707
2,338
1,875
1,406
937
469
$ 16,247
Interest
Due January 1
$ 2,975
2,275
1,575
875
-0-
$ 7,700
Schedule of 1962
Bonds, Series B,
Interest
Due January 1
$ 7,880
7,180
6,480
5,760
5,040
3,420
1,800
-0-
$ 37,560
Schedule of 1962
Bonds, Series C,
Interest
Due January 1
$ 3,078
2,707
2,338
1,875
1,406
938
469
-0-
$ 12,811
Total Principal
Interest Due Ouly 1
$ 6,650 $ 40,000
5,250 40,000
3,850 40,000
2,450 40,000
875 50,000
$ 19,075 $ 210,000
General Obligation
Debt Service to Maturity
Total Principal
Interest Due July 1
$ 16,460 $ 40,000
15,060 40,000
13,660 40,000
12,240 40,000
10,800 40,000
8,460 90,000
5,220 90,000
1,800 100,000
$ 83,700 $ 480,000
General Obligation
Debt Service to Maturity
Total Principal
Interest Due July 1
$ 6,515 $ 20,000
5,785 20,000
5,045 20,000
4,213 25,000
3,281 25,000
2,344 25,000
1,406 25,000
469 25,000
$ 29,058 $ 185,000
Total Annual
Debt Service
$ 46,650
45,250
43,850
42,450
50,875
$ 229,075
Total Annual
Debt Service
$ 56,460
55,060
53,660
52,240
50,800
98,460
95,220
101,800
$ 563,700
Total Annual
Debt Service
$ 26,515
25,785
25,045
29,213
28,281
27,344
26,406
25,469
$ 214,058
33
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
TOTAL
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
TOTAL
Schedule of 1966 General Obligation
Library Bonds, Debt Service to Maturity
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
Interest
Due Duly 1
$ 3,150
2,812
2,475
2,138
1,800
1,462
1,013
562
Interest
Due January 1
$ 3,150
2,812
2,475
2,138
1,800
1,462
1,013
562
Total
Interest
$ 6,300
5,624
4,950
4,276
3,600
2,924
2,026
1,124
Principal
Due Ouly 1
$ 15,000
15,000
15,000
15,000
15,000
20,000
20,000
25,000
Total Annual
Debt Service
$ 21,300
20,624
19,950
19,276
18,600
22,924
22,026
26,124
$ 15,412 $ 15,412 $ 30,824 $ 140,000 $170,824
Schedule of 1967 Revenue Bonds
Carlsbad Building Authority, Debt Service to Maturity
Interest Due
December 15
$ 12,600
11,550
10,237
8,925
7,612
6,300
4,987
3,412
1,837
$ 67,460
Principal Due
December 15
$ 20,000
25,000
25,000
25,000
25,000
25,000
30,000
30,000
35,000
$ 240,000
Total Annual
Debt Service
$
$
32,600
36,550
35,237
33,925
32,612
31,300
34,987
33,412
36,837
307,460
34
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Schedule of 1969 Revenue Bonds
Carlsbad Parking Authority, Debt Service to Maturity
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
Total
Interest
$ 136,925
130,675
121,225
111,775
102,250
92,725
83,200
70,400
57,600
44,800
32,000
16,000
999,575
Principal
Due October 1
$ 50,000
75,000
75,000
75,000
75,000
75,000
100,000
100,000
100,000
100,000
125,000
125,000
$ 1,075,000
Total Annual
Debt Service
$ 186,925
205,675
196,225
186,775
177,250
167,725
183,200
170,400
157,600
144,800
157,000
141,000
$ 2,074,575
Schedule of 1981 Revenue Bonds
Carlsbad Parking Authority, Debt Service to Maturity
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
Total
Interest
$ 117,600
114,400
110,400
106,400
101,600
96,800
92,000
86,000
80,000
74,000
66,000
58,000
50,000
42,000
32,000
22,000
12,000
$ 1,261,200
Principal
Due February 1
$
$
40,000
50,000
50,000
60,000
60,000
60,000
75,000
75,000
75,000
100,000
100,000
100,000
100,000
125,000
125,000
125,000
150,000
1,470,000
Total Annual
Debt Service
$ 157,600
164,400
160,400
166,400
161,600
156,800
167,000
161,000
155,000
174,000
166,000
158,000
150,000
167,000
157,000
147,000
162,000
$ 2,731,200
m
i
m
M
35
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(8) Obligations Under Capital Leases
In 1981 the City entered into an agreement with the City of Oceanside to
lease the 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
interest of $4-30,152 has been recorded in the City's general fixed assets.
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 $15,84-5 through
1986 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 payments of principal and
interest at 10% per annum of $31,176 per year through February 1987. The
lease agreement for word processing equipment requires payments of
principal and interest at 10% of $18,564- per year through March 1986.
The following is a summary by years of future minimum lease payments under
capital leases (paid from the general fund) with the present value of
minimum lease payments at 3une 30, 1984-:
Year Ending June 30 Total Lease Payments
1985 $132,500
1986 125,813
1987 101,4-64
1988 70,000
1989 70,000
Thereafter 14-0,000
Total minimum lease payments 639,777
Less amount representing interest 166,179
Present value of minimum lease payments $4-73,598
36
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(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 $1,450,009
for current and past service costs. Pension costs are recorded as W
expenditures when paid and are funded by monthly contributions from the Ml
City and employees to PERS. Contributions 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. The actuarial cost method used is entry age normal. At
3une 30, 1983, the plan net assets attributed to the City for benefits
totaled $10,741,893 and the present value of the City's unfunded obligation •
for prior service costs totaled $23,245 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 in the PERS pension fund is not determinable under the
PERS system of accounting.
(10) Excess of Expenditures over Appropriations
Expenditures exceeded appropriations in the following funds:
Excess of Expenditures
Appropriations Expenditures Over Appropriations |R
iiSpecial Revenue Funds:
Housing Authority - _
Sections $789,982 $825,236 $35,254
Library A.V. Ins. --- 10,500 10,500 m
Capital Funds: "^
Redevelopment 132,411 145,905 13,494 M
(11) Fund Balances/Retained Earnings m
The following is a summary of reserved and unreserved fund balances and
retained earnings:
37
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Governmental Fund Types
General
500
518
588
181
Fund balances:
Reserved for prepaid
expenses $ 43,
Reserved for encumbrance 280,
Reserved for inventory
supplies 7,
Reserved for advances to
other funds 4,
Reserved for low and
moderate income housing —
Reserved for debt service —
Reserved for payment of
principal and interest —
Reserved for working capital —
Reserved for advances to
Carlsbad Redevelopment
Agency 569,766
Reserved for repayment
of advances —
Unreserved:
Designated for approved
capital projects —
Undesignated —
HUD Equities —
Special
Revenue
$1,229,326
Debt
Service
35,951
— $ 164,934
499,156
4,500
Capital
Projects
Totals
(Memorandum Only)
Oune 30, June 30,
1984 1983
$ 645,584
—
135,198
—
$ 43,500
2,155,428
7,588
139,379
35,951
164,934
499,156
4,500
$ 93,945
783,113
7,438
12,544
14,005
956,422
501,919
4,500
569,766 361,622
56,020
Total Fund Balances
— 3,306,948 — 5,952,774 9,259,722 8,179,741
(148,111) 913,444 4,489,051 5,254,384 829,712
— 55,360 — — 55,360 70,691
$ 905,553 $4,479,474 $1,582,034 $11,222,607 $18,189,668 $11,871,672
Proprietary Fund Types
Internal
Enterprise Service
Totals
(Memorandum only)
Dune 30,
1984
3une 30,
1983
Retained Earnings (Deficit):
Reserved for construction $ 727,075
Reserved for debt service
Reserved for claims
Unreserved
Designated for approved
capital projects 817,016 — 817,016 825,213
Total Retained Earnings (Deficit) $ 7,653,015 $(349,717) $7,303,298 $5,505,309
— $ 727,075 $ 678,590
887,441 — 887,441 887,441
— $ 33,958 33,958
5,221,483 (383,675) 4,837,808 3,114,065
38
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
The following funds reported deficits in their respective fund balances
at 3une 30, 1984:
Redevelopment project (Capital Project Fund)
General liability self-insurance (Internal
Service Fund)
Central garage (Internal Service Fund)
(12) Changes in Contributed Capital
Enterprise Funds
Amount of Deficit
to Fund Balance
$ 425,929
309,152
49,603
Water
Utility
Sewer
Enterprise Total
Contributed capital, balance at beginning
of year
Prior period adjustments, net (see
footnote 3)
Beginning balance, as restated
Fixed asset contributions
Contributed capital, balance at end
of year
$2,423,080 $18,880,825 $21,303,905
(2,504,145) (2,504,145)
$2,423,080 16,376,680 18,799,760
— 12,727 12,727
$2,423,080 $16,389,407 $18,812,487
Internal Service Funds
Contrubited capital, balance at
beginning of year
Prior period adjustments (see
footnote 3)
Beginning balance, as restated
Cash contributions
Fixed asset contributions
Contributed capital, balance at
end of year
(13) Deferred Compensation Plan
Workers' General Central
Compensation Liability Garage Total
$500,000
500,000
$700,000 $591,494 $1,791,494
147,523
700,000
150,000
147,523
739,017
6,439
1,939,017
150,000
6,439
$500,000 $850,000 $745,456 $2,095,456
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 in a combination of deferred
39
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
compensation options including short-term certificates of deposit, bond
funds, stock funds, and government securities. At 3une 30, 1984, the
amount of the deferred compensation investments (and the resulting
liability recorded in the Agency Fund) was $324,443. 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.
— (14) Contingencies
(a) The Water Utility Fund of the City and Costa Real Municipal Water
District (the "District") are currently providing water services to
most of the City under the terms of a basis of understanding
negotiated in an effort to settle a law suit between the parties.
Such understanding provides for a functional allocation of
responsibilities between the Water Utility Fund and the District with
several significant issues to be resolved by Ooint Committee of the
parties before a final comprehensive agreement is reached. As a
result of a final agreement, additional assets and/or liabilities may
be transferred among the parties.
(b) In October 1983, the City of Carlsbad issued $20,000,000 of revenue
bonds to provide funds for purchase of loans collateral!zed by first
lien deeds of trust on single-family residences, including townhouses
and condominium units within the City. This activity is aimed at
broadening affordable housing opportunities in the City of Carlsbad.
The bonds are payable solely from payments made on the acquired loans.
The bonds are collateralized by the loans and related first lien deeds
of trust (and any insurance payments with respect thereto) and certain
reserve funds and other moneys in connection therewith (including
investment income earned thereon). It is the City's opinion that
these bonds are not payable from any other revenues or assets of the
City of Carlsbad, and neither the faith and credit nor the taxing
power of the City, the State of California or any political
subdivision thereof is pledged to the payment of the principal or
redemption price of or interest on the bonds. Consequently, the
transactions of these revenue bond programs are not included in the
financial statements of the various funds and account groups of the
City of Carlsbad.
(c) The City is a defendant in certain legal actions arising in the normal
course of operations. In the opinion of management and legal counsel,
any liability resulting from these actions will not result in a
material adverse effect on the City's financial position.
40
1m
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(15) Advances To and From Other Funds
Advances to other funds Advances from other funds 3
Fund Amount Fund Amount
General $573,94-6 Street Lighting $ 4,180
(Special Revenue Fund) P|
Mi
Redevelopment Project 569,766
(Capital Project Fund) H|
TOTAL $573,946 ^
3
3
I
B
41
SuppIemen taI Da ta
42
CITY OF CARLSBAD
General Fund
Schedule of Revenues
Year ended Oune 30, 1984
Taxes:
Property taxes
Property tax reimbursements
Sales and use taxes
Transient lodging taxes
Franchise taxes
Real property transfer taxes
Cigarette taxes
Trailer coach in-lieu tax
Total taxes
Licenses and permits:
Vehicle licenses (in-lieu)
Construction permits
Business licenses
License tax on new construction
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 and parks & rec fees
Police service fees
Ambulance fees
Refuse collection fees
City property damage
Environmental impact studies
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
Budget
$ 4,264,000
160,000
4,700,000
810,000
400,000
100,000
40,000
10,474,000
800,000
290,000
500,000
1,590,000
80,000
20,000
675,000
300,000
276,800
50,000
30,000
10,000
7,500
1,449,300
265,000
265,000"
700,000
20,000
5,000
5,000
48,000
78,000"
$14,556,300
Actual
$ 4,391,609
275,137
4,891,379
1,007,268
466,102
198,808
139,829
22,203
11,392,335
46,655
1,068,876
351,875
983,789
622
2,451,817
2,491
2,491
160,449
28,721
1,005,286
424,055
376,757
12,310
69,155
10,282
21,087
21,650
52,515
2,182,267
255,453
1,018
256,471
565,281
34,430
4,204
7,860
8,871
55,363"
$16,906,027
Variance
Favorable
(Unfavorable)
$ 127,609
115,137
191,379
197,268
66,102
98,808
139,829
(17,797)
918,335
46,655
268,876
61,875
483,789
622
861,817
2,491
2,491
80,449
8,721
330,286
124,055
99,957
12,310
19,155
(19,718)
21,087
11,650
45,015
732,967
(9,547)
1,018
(8,529)
(134,719)
14,430
(7%)
2,860
(39,129)
(22,635)"
$2,349,727
43
CITY OF CARLSBAD
General Fund
Schedule of Expenditures
Year ended June 30, 1984
General government:
City Council
City Manager
City Clerk
Research/Analysis Group
City Attorney
Finance
City Treasurer
Central Services
Data Processing
Purchasing
Insurance
Personnel
Planning
Community promotion
Senior Citizens programs
Community Assistance
Weed abatement
Contingencies
Capital improvements
Building maintenance
Leases
Other
Total general government
Public safety:
Fire protection
Police protection
Building Inspection
Civil Defense
Total public safety
Public works:
Administration
Engineering
Streets
Maintenance
Building Maintenance
Total public works
Culture and recreation:
Parks and recreation
Library
Total culture and recreation
Total Expenditures
Budget
2,825,029
Actual
Variance
Favorable
(Unfavorable)
$ 93,509
219,091
10,443
229,235
155,829
265,821
4,018
367,537
156,325
80,361
68,046
186,167
391,624
45,000
37,825
17,100
45,723
28,232
21,263
283,585
70,000
48,295
$ 89,559
214,189
7,045
199,281
152,771
217,476
3,756
371,007
141,734
77,840
62,424
190,368
390,277
46,758
37,825
17,100
41 ,952
1,437
13,540
149,140
70,755
38,634
$ 3,9-50
4,902
3,398
29,954
3,058
43,345
262
(3,470)
14,591
2,521
5,622
(4,201)
1,347
(1,758)
___
3,771
26,795
7,723
134,445
(755)
9661
2,534,868 290,161.
2,296,744
3,277,272
461,762
7,165
6,042,943
35,315
842,266
1,204,042
106,748
40,573
2,228,944
1,654,354
1,132,114
2,786,468
$ 13,883,384
2,221,626
3,049,646
537,646
4,533
5,813,451
30,068
716,513
1,068,367
51,684
40,784
1,907,416
1,590,203
1,037,104
2,627,307
$12,883,042
75,118
227,626
(75,884)
2,632
229,492
5,247
125,753
135,675
55,064
(211)
321,528
64,151
95,010
159,161
$1,000,342
44
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
3une 30,
Gas Tax
Assets
Cash and investments
Receivables:
Taxes
Accounts
Accrued interest
Due from other governments
Prepaid expenses
Total assets
Federal
Grants
State
Grants
$1,006,986 $ 782 $ 660,989
5,827
$1,006,986 $ 782 $ 666,816
Street
Lighting
$ 362,895
17,275
Library
Audio
Visual
Insurance
$ 8,886
$ 380,170 $ 8,886
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 52,239
Accrued wages payable —
Advance from General Fund —
Due to other funds —
Advances from other funds —
Advances from other
governments —
Prepaid annual
contributions —
Total liabilities 52,239
Fund balances (deficit):
Reserved for
encumbrances 418,743
Reserved for Low and
Moderate Income Housing —
Unreserved:
Designated for approved
capital projects 694,958
Undesignated (158,954)
HUD fund eguities —
Total fund
balances (deficit)
Total liabilities
and fund balances
954,747 782
$ 4,649
4,649
7,327
1,697,224
$ 782 (1,042,384)
662,167
$ 27,273
1,552
4,180
33,005
2,210
$1,006,986 $ 782 $ 666,816
344,955
347,165
$ 380,170
$ 8,886
8,886
$ 8,886
45
Revenue
Sharing
$2,470,736
___
$2,470,736
$ 9
__—
9
529 ,966
526,583
1,414,178
2,470,727
Section 8
Housing
Authority
$ 119,657
12
43,926
59,798
$ 228,393
$ 800
1,462
98,940
71,071
172,273
760
—
55,360
56,120
Community
Development
Block Grant
$ 63,771
—
$ 63,771
$ 120,842
___
120,842
270,320
—
388,178
(715,569)
(57,071)
Low and V/
Moderate Totals
Income June 30,
Housing 1984
$ 35,951 $ 4,730,653 $ 4
17,275
12
5,827
48,926
59,798
$ 35,951 $ 4,862,491 $ 5
— $ 205,812 $
3,014
4,180
98,940
71,071
383,017
1,229,326
$ 35,951 35,951
3,306,943 4
(148,111)
55,360
35,951 4,479,474 4
3une 30,
1983
,885,714
12,291
173,646
60,961
38,817
56,005
,227,434
403,432
2,806
98,583
12,544
87,199
63,966
668,530
483,414
14,005
,440,155
(449,361)
70,691
,558,904
$2,470,736 $ 228,393 $ 63,771 $ 35,951 $ 4,862,491 $ 5,227,434
46
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year ended Oune 30, 1984
Revenues:
Taxes
Intergovernmental
Interest income
Other
Total revenues
Expenditures:
General government
Public works
Culture and recreation
Capital projects
Welfare
Total expenditures
Excess (deficiency)
of revenues over
expenditures
Fund balances (deficit) at
beginning of year as
previously reported
Prior period adjustment
Fund balances (deficit) at
beg. of year as adjusi
Residual equity
transfers In (out)
Fund balances (deficit)
at end of year
Gas Tax
$ 521,624
130,553
12,637
664,814
453,494
453,494
211,320
1,286,427
1,286,427
(543,000)
Federal State
Grants Grants
$ 200,158
$ 64 66,275
64 266,433
11,850
602,794
126,314
740,958
64 (474,525)
718 1,136,692
718 1,136,692
Street
Lighting
$ 521,894
27,650
549,544
444,864
444,864
104,680
242,485
242,485
Library
Audio •
Visual •
Insurance
$ 19,386
19,386
10,500
10,500
8,886
—
—
1m
1
PPPlyilf
i«
*
m
m
M
m
$ 954,747 $ 782 $ 662,167 $ 347,165 $ 8,886
47
Revenue
Sharing
$ 454,074
185,550
639,624
108,870
108,870
Section 8
Housing
Authority
$ 796,207
13,698
809,905
825,236
825,236
Community
Development
Block Grant
$ 324,657
6,308
330,965
255,189
255,189
Low and
Moderate
Income
Housing
$ 19,795
2,151
21,946
•» — *
Totals
Dune 30,
1984
$ 1,063,313
1,775,096
451,635
12,637
3,302,681
11,850
1,501,152
136,814
364,059
825,236
2,839,111
Oune 30,
1983
$ 885,581
2,545,519
371,763
3,802,863
33,197
1,028,030
26,559
724,764
727,155
2,539,705
530,754 (15,331)75,776 21,946 463,570 1,263,158
1,939,973 71,451 (132,847)14,005 4,558,904 3,165,120
— -— 130,626
1,939,973 71,451 (132,847) 14,005 4,558,904 3,295,746
— — — — (543,000) —
$2,470,727 $ 56,120 $ (57,071) $ 35,951 $ 4,479,474 $4,558,904
48
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Revenues:
Taxes
Interest income
Other
Total Revenues
Expenditures:
Public Works
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Residual equity transfers in (out)
Fund balance at end of year
Gas Tax Fund
Budget
483,544
60,000
543,544
1,148,452
1,148,452
(604,908)
1,286,427
(543,000)
Actual
$ 521,624
130,553
12,637
664,814
453,494
453,494
211,320
1,286,427
(543,000)
Variance
favorable
(unfavorable)
$ 38,080
70,553
12,637
121,270
694,958
694,958
816,228
$ 138,519 $ 954,747 $ 816,228
49
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Federal Grants
Revenues:
Interest income
Total Revenues
Expenditures:
Culture and recreation
Capital projects
Total Expenditures
Excess of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
Budget
$ 718
$ 718
Actual
64
64
718
782
Variance
favorable
(unfavorable)
$ 64
64
64
64
50
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30,
Budget
Revenues:
Intergovernmental revenues
Interest income
Total Revenues
Expenditures:
General government
Public Works
Culture and recreation
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Fund balance (deficit) at end of year $ (295,121)
State Grants
Actual
Variance -
favorable
(unfavorable)
$ 1,034,470
1,034,470
2,210,368
255,915
2,466,283
(1,431,813)
1,136,692
$ (295,121)
$ 200,158
66,275
266,433
11,850
602,794
126,314
740,958
(474,525)
1,136,692
$ 662,167
$ (834,312)
66,275
(768,037)
(11,850)
1,607,574
129,601
1,725,325
957,288
$ 957,288
51
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended CJune 30, 1984
Library Audio Visual Insurance
Budget
Revenues:
Interest Income
Total Revenues
Expenditures:
Culture and recreation
Total Expenditures
Excess of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
Actual
Variance -
favorable
(unfavorable)
.._
...
...
—
$ 19,386
19,386
10,500
10,500
8,886
$ 19,386
19,386
(10,500)
(10,500)
8,886
$ 8,886 $ 8,886
52
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Revenues:
Taxes
Interest income
Total Revenues
Expenditures:
Public Works
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
Budget
$ 468,000
4,000
472,000
Street Lighting
Actual
$ 521,894
27,650
54.9,544
Variance -
favorable
(unfavorable)
$ 53,894
23,650
77,544
492,614
492,614
(20,614)
242,485
$ 221,871
444,864
444,864
104,680
242,485
$ 347,165
47,750
47,750
125,294
$125,294
53
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Revenue Sharing
Revenues:
Intergovernmental revenues $
Interest income
Total Revenues
Expenditures:
Capital projects
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year $
Budget
500,000
500,000
1,892,552
1,892,552
(1,392,552)
1,939,973
547,421
Actual
$ 454,074
185,550
639,624
108,870
108,870
530,754
1,939,973
$ 2,470,727
Variance -
favorable
(unfavorable)
$ (45,926)
185,550
139,624
1,783,682
1,783,682
1,923,306
$1,923,306
54
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended June 30, 1984
Section 8 - Housing Authority
Revenues:
Intergovernmental revenues
Interest income
Total Revenues
Expenditures:
Welfare
Total Expenditures
Deficiency of revenues
over expenditures
Fund balances at beginning of year
Fund balance at end of year
Budget Actual
Variance -
favorable
(unfavorable)
$ 754,850
20,000
774,850
789,982
789,982
(15,132)
71,451
$ 796,207
13,698
809,905
825,236
825,236
(15,331)
71,451
$ 41,357
(6,302)
35,055
(35,254)
(35,254)
(199)
$ 56,319 $ 56,120 (199)
55
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended June 30, 1984
Community Development Block Grant
Revenues:
Intergovernmental revenues
Interest income
Total Revenues
Expenditures:
Capital projects
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Deficit at beginning of year
Deficit at end of year
$
$
Budget
325,000
325,000
587,323
587,323
(262,323)
(132,847)
(395,170)
Actual
$ 324,657
6,308
330,965
255,189
255,189
75,776
(132,847)
$ (57,071)
Variance -
favorable
(unfavorable)
$ (343)
6,308
5,965
332,134
332,134
338,099
$ 338,099
56
CITY OF CARLSBAD
Special Revenue Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended 3une 30, 1984
Low and Moderate Income Housing
Revenues:
Taxes
Interest
Total Revenues
Expenditures:
Capital projects
Total Expenditures
Excess of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
Budget
$ 22,000
22,000
22,000
14,005
$ 36,005
Actual
$ 19,795
2,151
21,946
Variance -
favorable
(unfavorable)
$ (2,205)
2,151
(54)
(54)
nHi
i
1
m
m
m
Ml
Pf
m
57
This Page Intentionally Left Blank
58
CITY OF CARLSBAD
Debt Service Funds
Combining Balance Sheet
3une 30, 1984
Assets
Cash and investments (Note 5)
Taxes receivable
Accrued interest receivable
Total assets
Library
Bonds
Sewer
Bonds
$ 22,868 $ 159,236
— 1,942
Parking
Authority PI
$ 1,309,301
33,003
$ 22,868 $ 161,178 $ 1,342,304
Liabilities and Fund Balances
Liabilities:
Accounts payable
Due to other funds
Total liabilities
$ 3,150 $ 15,962
3,150 15,962
Fund balance:
Reserved for debt service
Reserved for payment of bond
principal and interest
Reserved for working capital
Unreserved
Total fund balances
Total liabilities and fund balances
19,718 145,216
19,718 145,216
$ 22,868 $ 161,178
$ 446,631
3,000
892,673
1,342,304
$ 1,342,304
59
Totals
Building June 30, dune 30,
Authority 1984- 1983
$ 74,796 $ 1,566,201 $ 1,440,051
2,417
— 34,945 24,579
$ 74,796 $ 1,601,146 $ 1,467,047
19,112 $ 365
— 3,841
19,112 4,206
164,934 98,380
$ 52,525 499,156 501,919
1,500 4,500 4,500
20,771 913.444 858,042
74,796 1,582,034 1,462,841
$ 74,796 $ 1,601,146 $ 1,467,047
60
CITY OF CARLSBAD
Debt Service Funds •
Combining Statement of Revenues, Expenditures j|
and Changes in Fund Balances
Year ended Oune 30, 1984 ffm
Library Sewer Parking l|
Bonds Bonds Authority ^
mRevenues:
Taxes — $ 109,295 — "-
Interest income $ 2,366 7,915 $ 120,623
P^
Total revenues 2,366 117,210 UP, 623 -
Expenditures: ^
General government — — 3,550 ';
Principal retirement 15,000 ~- 80,000 **
Interest and fiscal charges 6,637 31,385 190,025
Total expenditures 21,637 31,385 273,575 ^ -
Excess (deficiency) of revenues HJ
over expenditures (19,271) 85,825 (152,952) -
Other financing sources (uses): mOperating Transfers in (out) — --- 312,400 {
^Total other financing sources (uses) _ — — 312,400
^Excess (deficiency) of revenues ^
and other sources over expend-
itures and other uses (19,271) 85,825 159,448 MI
Fund balances at beginning of year 38,989 59,391 1,260,956 "*
Prior period adjustment (Note 3) — - --- (78,100)
^^1
Fund balances at beginning of year as adjusted 38,989 59,391 1,182,856 •*
Fund balances at end of year $ 19,718 $ 145,216 $1,342,304 m
61
Totals
Building Oune 30, 3une 30,
Authority 1984 1983
$ 109,295 $ 113,940
$ 7,232 138,136 141,843
7,232 247,431 255,783
941 4,491 3,175
20,000 115,000 185,000
15,000 243,047 252,147
35,941 362,538 440,322
(28,709) (115,107) (184,539)
36,000 348,400 462,500
36,000 348,400 462,500
7,291 233,293 277,961
103,505 1,462,841 1,184,880
(36,000) (114,100) —
67,505 1,348,741 1,184,880
$ 74,796 $ 1,582,034 $1,462,841
62
CITY OF CARLSBAD
Debt Sevice Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended 3une 30, 1984
Revenues:
Interest income
Total Revenues
Expenditures:
Debt service expenditures:
Principal retirement
Interest and fiscal charges
Total Expenditures
Deficiency of revenues over
expenditures
Fund balance at beginning of year
Fund balance at end of year
Budget
Library Bonds
Actual
Variance -
favorable
(unfavorable)
$
$
4,000
4,000
15,000
6,976
21,976
(17,976)
38,989
21,013
$ 2,366
2,366
15,000
6,637
21,637
(19,271)
38,989
$ 19,718
$ (1,634)
(1,634)
339
339
(1,295)
$ (1,295)
63
CITY OF CARLSBAD
Debt Service Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Revenues:
Taxes
Interest income
Total Revenues
Expenditures:
Debt service expenditures:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
Budget
$ 100,000
10,000
110,000
31,385
Sewer Bonds
Actual
$ 109,295
7,915
117,210
31,385
31,385
78,615
59,391
31,385
85,825
59,391
Variance -
favorable
(unfavorable)
$ 9,295
(2,085)
7,210
$ 138,006 $ 145,216
7,210
$107,210
64
CITY OF CARLSBAD
Debt Service Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Parking Authority
Revenues:
Interest income $
Total Revenues
Expenditures:
General government
Debt service expenditures:
Principal retirement
Interest and fiscal charges
Total Expenditures
Deficiency of revenues over
expenditures
Other financing sources:
Operating Transfers in
Total other financing sources
Excess of revenues and other
sources over expenditures
and other uses
Fund balance at beginning of year 1
Prior period adjustment (Note 3)
Fund balance at the beginning of year 1
Fund balance at end of year $1
Budget
120,623
120,623
3,550
80,000
190,025
273,575
(152,952)
312,400
312,400
159,448
,260,956
,260,956
,420,404
Variance -
favorable
Actual (unfavorable)
$ 120,623 $
120,623
3,550
80,000
190,025
273,575
(152,952)
312,400
312,400
159,448
1,260,956
(78,100) (78,100)
1,182,856 (78,100)
$ 1,342,304 $(78,100)
"iMi
1i
II
m
m
m
m
mi
m
m
X. —
m
m
1it
Z
•
1
65 I
CITY OF CARLSBAD
Debt Service Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Building Authority
Revenues:
Interest income
Total Revenues
Expenditures:
General government
Debt service expenditures:
Principal retirement
Interest and fiscal charges
Total Expenditures
Deficiency of revenues over
expenditures
Other finances sources:
Operating Transfers in
Total other financing sources
Excess of revenues and other
sources over expenditures and
other uses
Fund balance at beginning of year
Prior period adjustment (Note 3)
Fund balance at beginning of year
as adjusted
Fund balance at end of year
Budget
$ 7,232
7,232
941
20,000
15,000
35,941
(28,709)
36,000
36,000
7,291
103,505
103,505
$ 110,796
Variance -
favorable
Actual (unfavorable)
$ 7,232 $
7,232
941
20,000
15,000
35,941
(28,709)
36,000
36,000
7,291
103,505
(36,000) (36,000)
67,505 (36,000)
$ 74,796 $(36,000)
66
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet
Oune 30, 1984
Assets
Cash and investments (Note 5)
Accounts receivable
Accrued interest receivable
Total assets
Capital
Construction
$ 5,655,396
$ 5,655,396
Public
Facilities
Construction
$ 4,278,826
$ 4,278,826
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued wages payable
Advances from other funds
Total liabilities
645
645
$300
300
Fund balances (deficit):
Reserved for encumbrances
Reserved for repayment of advances
Unreserved:
Designated for approved capital projects
Undesignated
Total fund balances (deficit)
Total liabiltiies and fund
balances (deficit)
527,907
3,746,178
1,380,666
117,677
2,131,596
2,029,253
4,278,526
$ 4,278,826
67
Park Bristol
Development Cove
Planned
Local
Drainage
Facilities
Totals
Redevelopment
Project
3une 30, Oune 30,
1984 1983
$ 1,251,800 $ 50,899
- $ 1,251,800 $ 50,899
$ 412,560 $ 145,896 $ 11,795,377 $ 5,471,452
5,068
— — — 32,227
$ 412,560 $ 145,896 $ 11,795,377 $ 5,508,747
120
1,939
569,766
571,825
$ 1,065 $
1,939
569,766
572,770
53
714
361,622
362,389
75,000
1,176,800
1,251,800
—
50,899
50,899
412,560
412,560
135,198
(561,127)
(425,929)
645,584
135,198
5,952,774
4,489,051
11,222,607
139,854
56,020
3,739,586
1,210,898
5,146,358
$ 1,251,800 $ 50,899 $ 412,560 $ 145,896 $ 11,795,377 $ 5,508,747
68
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Year ended June 30, 1984
Revenues:
Taxes
Charges for services
Interest income
Miscellaneous Revenue
Total revenues
Capital
Construction
$ 171,043
171,043
Public
Facilities
Construction
$ 2,305,262
251,570
2,556,832
Expenditures:
Police and Utility Service Center
Police Firing Range
Fire Station #5 land aquisitlon
Community Development Center
La Costa Canyon Park
Street additions and improvements
Library addition
Storm Drains
Longard Tube
Redevelopment area project
Other construction projects
Interest and fiscal charges
Total expenditures
47,822
25,080
150,897
100,212
37,032
361,043
48,961
28,227
31,179
23,887
132,254
Excess (deficiency) of revenues
over expenditures (190,000)
Other financing sources:
Operating transfer in —
Excess (deficiency) of revenues and other
sources over expenditures (190,000)
Fund balances (deficit) at beginning of year 2,409,206
Prior period adjustment (Note 3)
Fund balances at beginning of year as adjusted 2,409,206
Residual equity transfers in 3,435,545
Fund balances (deficits) at end of year $5,654,751
2,424,578
2,424,578
1,853,948
1,853,948
$4,278,526
69
Park Bristol
Development Cove
$ 139,030
92,833 $ 4,065
139,200
371,063 4,065
—
—
—
—
—
—
—
—
—
. __ •_ *
Planned
Local
Drainage
Facilities
$ 121,392
29,933
151,325
—
—
—
—
—
—
—
—
—
_•.»
Totals
Redevelopment
Project
$ 79,179 $
—8,639
87,818
—
—
—
—
—
—
—112,093
33,812
145,905
3une 30,
1984
79,179
2,565,684
387,040
310,243
3,342,146
96,783
25,080
28,227
—
—182,076
23,887
100,212
37,032
112,093
—33,812
639,202
3une 30,
1983
$ 56,020
1,038,633
185,094
1,279,747
37,574
7,716
36,541
120,689
88,157
13,867
77,149
126,571
20
...
508,284
371,063 4,065 151,325 (58,087)2,702,944 771,463
52,070
371,063
880,737
880,737
$1,251,800
4,065
46,834
46,834
$50,899
151,325
261,235
261,235
$ 412,560
(58,087)
(305,602)
(62,240)
(367,842)
2,702,944
5,146,358
(62,240)
5,084,118
3,435,545
823,533
4,322,825
4,322,825
$(425,929) $ 11,222,607 $ 5,146,358
70
CITY OF CARLSBAD
Capital Projects Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Revenues:
Miscellaneous revenue
Total revenues
Expenditures:
Capital projects
Total expenditures
Deficiency of revenues over
expenditures
Fund balance at beginning of year
Residual equity transfers in
Fund balance (deficit) at end of year
Capital Construction
Budget Actual
171,043
Variance -
favorable
(unfavorable)
$ 171,043 $ 171,043
171,043
2,852,775
2,852,775
(2,852,775)
2,409,206
(443,569)
361,043
361,043
(190,000)
2,409,206
3,435,545
$ 5,654,751
2,491,732
2,491,732
2,662,775
3,435,545
$ 6,098,320
71
CITY OF CARLSBAD
Capital Projects Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended dune 30,
Public
1984
Facilities Construction
Revenues:
Charges for services
Interest income
Total Revenues
Expenditures:
Capital projects
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
Budget Actual
Variance -
favorable
(unfavorable)
$ 2,000,000
2,000,000
2,264,446
2,264,446
(264,446)
1,853,948
$ 1,589,502
$ 2,305,262
251,570
2,556,832
132,254
132,254
2,424,578
1,853,948
$ 4,278,526
$ 305,262
251,570
556,832
2,132,192
2,132,192
2,689,024
$ 2,689,024
72
CITY OF CARLSBAD
Capital Projects Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Park Development
Revenues:
Charges for services
Interest income
Miscellaneous revenue
Total Revenues
Expenditures:
Capital projects
Total Expenditures
Excess of revenues over
expenditures
Fund balance at beginning of year
Fund balance at end of year
$
Budget
317,000
317,000
Actual
$ 139,030
92,833
139,200
371,063
Variance -
favorable
(unfavorable)
$ (177,970)
92,833
139,200
54,063
...
$1
317,000
880,737
,197,73
371,063
880,737
$ 1,251,800
54,063
$ 54,063
73
CITY OF CARLSBAD
Capital Projects Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended 3une 30, 1984
Revenues:
Interest income
Total Revenues
Expenditures:
Capital projects
Total Expenditures
Excess of revenues over
expenditures
Fund balance at beginning of year
Fund balance at end of year
Budget
Bristol Cove
Actual
$ 4,065
4,065
Variance -
favorable
(unfavorable)
$ 4,065
4,065
4,065
$ 4,065
74
CITY OF CARLSBAD
Capital Projects Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984-
Planned Local Drainage Facility
Revenues:
Charges for services
Interest income
Total Revenues
Expenditures:
Capital projects
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance at beginning of year
Fund balance at end of year
Budget
$ 180,000
180,000
Actual
$ 121,392
29,933
151,325
Variance -
favorable
(unfavorable)
$ (58,608)
29,933
(28,675)
(28,675)
$(28,675)
75
CITY OF CARLSBAD
Capital Projects Fund Types
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
Year ended Oune 30, 1984
Redevelopment Project
Revenues:
Taxes
Interest income
Total Revenues
Expenditures:
Capital projects
Debt service expenditures:
Interest and fiscal charges
Total Expenditures
Deficiency of revenues over
expenditures
Fund deficit at beginning of year
Prior period adjustment (Note 3)
Fund deficit at beginning of year
as adjusted
Fund deficit at end of year
$
$
Budget
88,000
88,000
132,411
132,411
(44,411)
(305,602)
(305,602)
(350,013)
Actual
$ 79,179
8,639
87,818
112,093
33,812
145,905
(58,087)
(305,602)
(62,240)
(367,842)
$ (425,929)
Variance -
favorable
(unfavorable)
$ (8,821)
8,639
(182)
20,318
(33,812)
(13,494)
(13,676)
(62,240)
(62,240)
$ (75,916)
76
CITY OF CARLSBAD
Enterprise Funds
Combining Balance Sheet
Dune 30, 1984
Totals
Water
Utility Sewer
Assets:
Cash and investments (Note 5) $ 2,481,025 $ 2,848,416
Receivables:
Accounts
Accrued interest
Inventory, at cost
Prepaid expenses
Total current assets: 3
Restricted assets:
Cash & investments (Note 5)
Accrued interest
Total restricted assets:
Investment in sewage treatment
facility
Property, plant and equipment (Note
Land and water rights
Buildings
Structures and improvements
Wells, reservoirs, and dams 1
Transmission & distrib. lines 4
Sewers, sewer lines and wells
Filters and pumps
Fire hydrants
Equipment and vehicles
Fire protection service
Construction In progress
Total property, plant and
equipment 6
Less accum. depreciation (1
Net property, plant
and equipment 4
Total assets $ 8
858,229
—97,671
4,552
,441,477
618,525
618,525
6):
231,956
37,964
,289,853
,022,304
147,349
364,969
184,476
5,759
72,195
,356,825
,976,114)
,380,711
,440,713
202,561
7,624
1,840
3,060,441
— « ~
12,998,980
227,250
37,948
4,420,783
___
404,462
2,604,423
7,694,866
(1,542,839)
6,152,027
$ 22,211,448
1,060,790
—105,295
6,392
6,501,918
618,525
618,525
12,998,980
459,206
37,964
37,948
1,289,853
4,022,304
4,420,783
147,349
364,969
588,938
5,759
2,676,618
14,051,691
(3,518,953)
10,532,738
$30,652,161
452,199
28 ,083
112,402
175,538
4,195,094
556,351
10,703
567,054
231,956
37,964
2,120,747
1,289,853
4,022,304
6,001,567
147,349
364,969
1,437,640
5,759
11,220,165
26,880,273
(3,341,432)
23,538,841
$28,300,989
77
Totals
Water
Utility Sewer
463,786
7,334
88,512
559,632
28,438
125,000
153,438
713,070
Liabilities;
Current liabilities (payable
from current assets):
Accounts payable $
Accrued wages payable
Deposits payable
Total current liabilities
(payable from current assets)
Current liabilities (payable from
restricted assets):
Accrued interest
Current portion of revenue bonds
payable
Total current liabilities
(payable from restricted
assets)
Total current liabilities
Long-term liabilities (Note 7):
Revenue bonds payable (net of
unamortized discount of $7,404
and current portion) 894,596-
Deferred revenue -—
Total liabilities 1,607,666
Fund Equity;
Contributed capital 2,423,080
Retained earnings:
Reserved for construction 615,540
Reserved for debt service 887,441
Reserve for inventory supplies —
Unreserved:
Designated for approved
capital projects 66,253
Undesignated 2.840,733
Total retained earnings 4,409,967
Total fund equity 6,833,047
10,033
5,182
15,215
15,215
2,563,778
2,578,993
16,389,407
111,535
7,625
750,763
2,373,125
3,243,048
19,632,455
Cune 30,
1984
$ 473,819
12,516
88,512
574,847
28,438
125,000
153,438
728,285
894,596
2,563,778
4,186,659
18,812,487
727,075
887,441
7,625
817,016
5,213,858
7,653,015
26,465,502
Oune 30,
1983
$ 320,929
4,502
78,719
404,150
125,000
125,000
529,150
893,362
1,422,512
21,303,905
678,590
887,441
825,213
3,183,328
5,574,572
26,878,477
Total liabilities and
fund equity $8,440,713 $ 22,211,448 $30,652,161 $28,300,989
78
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and Changes
in Retained Earnings
Year ended June 30, 1984
Totals
Operating revenues:
Metered water sales
Sewer service charges
Sewer construction fees
Other charges for services
Total operating revenues
Operating expenses:
Personnel services
Office expenses
Repairs and maintenance
Professional services
Insurance
Purchased water
Loss on disposal of property
Bad debt expense
Depreciation and amortization
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Interest income
Interest expense and fiscal
agent fees
Total non-operating
revenues (expenses)
Net income
Retained earnings at beginning
of year
Prior period adjustment (Note 3)
Retained earnings at beginning
of year as adjusted
Retained earnings at end of year $4,409,967
Water
Utility
$1,309,379
104,953
1,414,332
439,508
48,716
230,986
38,164
13,099
577,081
16,092
56,021
137,506
1,557,173
(142,841)
258,232
(56,875)
201,357
58,516
4,351,451
I)
4,351,451
$4,409,967
Sewer
$1,160,834
1,799,010
24,484
2,984,328
283,886
2,950
130,663
599,986
5,232
118,744
1,141,461
1,842,867
145,443
145,443
1,988,310
1,223,121
31,617
1,254,738
$3,243,048
Oune 30,
1984
$ 1,309,379
1,160,834
1,799,010
129,437
4,398,660
723,394
51,666
361,649
638,150
18,331
577,081
16,092
56,021
256,250
2,698,634
1,700,026
403,675
(56,875)
346,800
2,046,826
5,574,572
31,617
5,606,189
$ 7,653,015
Oune 30,
1983
$ 1,606,202
961,217
657,370
88,826
3,313,615
752,608
20,908
273,338
537,524
102,322
926,347 f
159,396
2,772,443
541,172
306,198
(64,492)
241,706
782,878
4,791,694
4,791,694
$ 5,574,572
79
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Changes in Financial Position
Year ended June 30, 1984
Totals
Sources of working capital:
Operations
Net income
Items not requiring working capital
Depreciation and amortization
Loss on disposal of property
Working capital provided by
operations
Contribution from other funds
Total sources of working capital
Uses of working capital:
Acquisition of property, plant, and
equipment
Decrease in long-term revenue bonds
payable
Reduction of deferred revenue
Net increase (decrease) in restricted
assets and related liabilities
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
Deposits payable
Water
Utility
$ 58,516
••
137,506
16,092
212,114
—
212,114
11,270
23,033
34,303
$177,811
$ 106,885
447,136
(18,873)
(14,731)
(38)
(325,441)
(7,334)
(9,793)
Sewer
$1,988,310
118,744
2,107,054
12,727
2,119,781
25,465
—136,000
161,465
$1,958,316
$1,795,684
161,455
(9,210)
7,624
(169,108)
172,551
(680)
3une 30,
1984
$2,046,826
256,250
16,092
2,319,168
12,727
2,331,895
36,735
136,000
23,033
195,768
$2,136,127
$1,902,569
608,591
(28,083)
(7,107)
(169,146)
(152,890)
(8,014)
(9,793)
June 30,
1983
$ 782,878
159,396
942,274
174,115
1,116,389
355,324
115,000
(809,244)
(338,920)
$1,455,309
$1,500,110
(10,961)
12,117
6,970
170,221
(221,985)
7,782
(8,945)
Net increase in working capital $ 177,811 $1,958,316 $2,136,127 $1,455,309
80
CITY OF CARLSBAD
Internal Service Funds
Combining Balance Sheet
Oune 30,
Assets
Current assets:
Cash and cash equivalents
Accrued interest receivable
Total current assets
Property and equipment:
Machinery and equipment
Less accumulated depreciation
Net property and equipment
Total assets
Liabilities and Fund Equity
Current liabilities:
Accounts payable
Accrued wages payable
Estimated claims payable
Total current liabilities
Total liabilities
Contributed capital:
Contributed from Other Funds
Retained earnings (deficit):
Reserved
Unreserved
Total retained earnings
(deficit)
Total fund equity
Total liabilites and
fund equity
Workers '
Compensation
$ 748,004 $
748,004
i ---
•• • «v
$ 748,004 $
$ 7,082 $
231,884
238,966
238,966
General
Liability
Self
Insurance
799,381 $
799,381
— 1
• •*
799,381 $
3,007 $
255,526
258,533
258,533
Totals
Central
Garage
192,312
643
192,955
,350,218
(761,657)
588,561
781,516
80,801
4,862
85,663
85,663
3une 30,
1984
$1,739,697
643
1,740,340
1,350,218
(761,657)
588,561
$2,328,901
$ 90,890
4,862
487,410
583,162
583,162
June 30,
1983
$1,463,870
7,365
1,471,235
1,308,296
(716,802)
591,494
$2,062,729
$ 36,643
4,212
299,643
340, 498
340,498
500,000 $ 850,000 745,456 2,095,456 1,791,494
9,038
9,038
33,958 — 33,958
(343,110) (49,603) (383,675) (69,263)
(309,152) (49,603) (349.717) (69,263)
540,848 695,853 1,745,739 1,722.231
$ 799,381 $ 781,516 $2,328,901 $2,062,729
81
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
Year ended Dune 30, 1984
Workers'
Compensation
Operating revenue:
Charges for services
Reimbursed expenditures
Total operating revenue
Operating expenses:
Personnel services
Fuel
Office expense
Supplies and parts
Repairs and maintenance
Claims expense
Depreciation
Other operating charges
Total operating expenses
Operating income (loss)
Non-operating revenues
Interest revenue
Sale of property
Total non-operating
revenues
Income (loss) before
operating transfers
Operating transfers in
Net income (loss)
Retained earnings (deficit) at
beginning of year
Prior period adjustment (Note 3)
Retained earnings (deficit) at
beginning of year as adjusted
Retained earnings (deficit) atend of year
$ 228,148
228,148
333,315
333,315
(105,167)
63,203
63,203
,964)
51,002
General
Liability
Self
Insurance
$ 93,500
93,500
314,876
314,876
(221,376)
62,057
Totals
Central
Garage
$ 714,279
714,279
188,554
187,316
1,246
72,137
77,208
145,452
2,784
674,697
39,582
10,636
18,134
Dune 30,
1984
$ 714,279
321,648
1,035,927
188,554
187,316
1,246
72 , 1 37
77,208
648,191
145,452
2,784
1,322,888
(286,961)
135,896
18,134
dune 30,
1983
$ 526,680
326,906
853,586
161,625
198,094
560
84,820
54,804
402,854
2,973
905,730
(52,144)
98,793
5,764
62,057 28,770 154,030 104,557
(159,319) 68,352 (132,931) 52,413
— — — 15,553
(41,964) (159,319) 68,352 (132,931) 67,966
(149,833) 29,568 (69,263) (137,229)
— (147,523) (147,523) —
51,002 (149,833) (117,955) (216,786) (137,229)
$ 9,038 $ (309,152) $ (49,603) $ (349,717) $ (69,263)
82
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Changes in Financial Position
Year ended 3une 30, 1984
General
Liability Totals
Workers' Self Central Oune 30, Gune 30,
Compensation Insurance Garage 1984 1983
Sources of working capital:
Operations:
Net income (loss) $ (41,964) $ (159,319) $ 68,352 $(132,931) $ 67,966
Less gain on sale of property — — (18,134) (18,134)
Items not requiring working
capital:
Depreciation — — 145,452 145,452 —
Working Capital provided by
operations (41,964) (159,319) 195,670 (5,613) 67,966
Proceeds from sale of property — — 36,952 36,952 —
Contributions from other funds — 150,000 6,439 156,439 891,494
Total sources of working
capital . (41,964) (9,319) 239,061 187,778 959,460
Uses of working capital:
Acquisition of fixed assets — — 161,337 161,337 591.494
Total uses of working capital — — 161,337 161,337 591,494
Net increase (decrease) in
working capital $(41,964) $ (9,319) $ 77,724 $ 26,441 $ 367,966
Elements of net increase (decrease)
in working capital:
Cash and investments $ 73,987 $ 71,674 $ 130,166 $ 275,827 $ 484,374
Accrued interest receivable (5,328) (2,037) 643 (6,722) 3,142
Estimated claims payable (105,741) (82,026) — (187,767) (92,082)
Accounts payable (4,882) 3,070 (52,435) (54,247) (35,653)
Accrued wages payable — — (650) (650) (4,212)
Due to other funds — —-- — — 12,397
Net increase (decrease) in
working capital $ (41,964) $ (9,319) $ 77,724 $ 26,441 $ 367,966
83
CITY OF CARLSBAD
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year ended Oune 30, 1984
Balance Balance
July 1, 1983 Additions Deductions June 30, 1984
Deferred Compensation Agency Fund
Assets
Cash and investments (Note 5) $ 483,633 $ 10,569,283 $ 10,728,473 $ 324,443
Liabilities
Deferred compensation payable — $ 324,443 $ --- $ 324,443
Accounts payable $ 8,235 --- 8,235
Deposits payable 475,398 10,244,840 10,720,238 —
Total liabilities $ 483,633 $ 10,569,283 $ 10,728,473 $ 324,443
Contractors Deposits Agency Fund
Assets
Cash and investments $ 386,084 $ 4,355,480 $ 2,677,003 $ 2,064,561
Accrued interest receivable — 810 810 —
Accounts receivable — 70 70 —
Total assets $ 386,084 $ 4,356,360 $ 2,677,883 $ 2,064,561
Liabilities
Accounts payable $ 30,859 $ 30,859
Deposits payable $ 386,084 4,325.501 2,647,024 $ 2,064,561
Total liabilities $ 386,084 $ 4,356,360 $ 2,677,883 $ 2,064,561
(Continued)
84
CITY OF CARLSBAD
Agency Funds
Combining Statement of Changes in
Assets and Liabilities, continued
i
M
Year ended 3une 30, 1984
DdJLdllUC K
Additions Deductions June 30, 1984B
Balance
July 1, 1983
Balance
Miscellaneous Deposits Agency Fund
Assets
Cash and investments (Note 5)
Accrued interest receivable
Accounts receivable
Total assets
Liabilities
Accounts payable
Deposits payable
Total liabilities
Totals - All Agency Funds
Assets
Cash and investments (Note 5)
Accrued interest receivable
Accounts receivable
Total assets
Liabilities
Deferred compensation payable
Accounts payable
Deposits payable
Total liabilities
$ 844,891
810
70
$ 845,771
$ 30,859
814,912
$ 845,771
$1,714,608
810
70
$
$
$
$
844,891
810
70
845,771
30,859
814,912
845,771
•
'•" •
— 1
— 1
•
1__ — Mk
...--c-
$ 14,924,763 $ 14,250,367 $2,389,004
810 1,620
70 140
$1,715,488 $ 14,925,643 $ 14,252,127 $2,389,004
$ 324,443 — $ 324,443
$ 39,094 30,859 $ 69,953
1,676,394 14,570,341 14,182,174 2,064,561
$1,715,488 $ 14,925,643 $ 14,252,127 $2,389,004
•I
•••411
85
Statistical Section
86
CITY OF CARLSBAD
General Expenditures by Function
Last Ten Years
Fiscal
Year
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
Total (1)
(Memo Only)
$ 4,841,800
5,540,958
6,916,158
8,608,080
9,566,353
10,958,699
13,837,197
14,329,047
14,955,142
16,084,691
General
Government
1,463,821
1,660,069
2,280,639
2,767,513
3,314,694
3,112,025
4,547,215
2,849,059
2,272,174
2,551,209
Public
Safety
1,458,573
1,561,812
1,869,808
2,592,993
2,634,839
3,058,443
3,407,025
4,888,849
5,285,609
5,813,451
Public(/f)
Works
1,196,512
1,443,009
1,523,376
1,981,274
2,314,667
2,495,741
2,868,460
3,062,434
3,660,043
3,772,627
Culture
Recreation
569,791
725,928
1,095,120
1,122,003
1,161,115
1,599,729
2,261,888
2,732,343
2,573,014
2,764,121
Welfare(2)
544,597
608,009
650,202
727,155
825,236
Debt(3)
Service
153,103
150,140
147,215
144,297
141,038
148,164
144,600
146,160
437,147
358,047
(1)
(2)
(3)
(4)
Includes General, Special Revenue, and Debt Service funds.
The City assumed responsibility for the Carlsbad Housing Office in 1979-80.
In 1982-83, the City adopted the entity concept of reporting. This causes
the Debt Service Expenditures to increase due to the inclusion of the City's
Building and Parking Authorities Lease Revenue Bond payments.
During 1982-83, the City converted the sewer operation activity from a
special revenue to an enterprise fund. Prior figures have not been restated
to remove sewer operation expenditures. This figure also includes the cost
capital projects paid for by special revenue funds.
87
GENERAL EXPENDITURES BY FUNCTION
1983-84
CULTURE/REC 17.336
2.8
PUBLIC WKS 23.5J6
3.8
INCLUDES GENERAL,SPECIAL
REVENUE AND DEBT SERVICE
FUNDS ONLY.
GEN GOVT 16.OX
2.6
WELFARE 4.9X
0.8
DEBT SERV 2.5X
0.4
PUBLIC
SAFETY 35.8X
5.8
VALUES ARE IN MILLION DOLLARS
GENERAL EXPENDITURES BY FUNCTION
TOTAL EXPENDITURES - LAST TEN YEARS
MILLION DOLLARS
74-75 75-78 78-77 77-78 78-79 79-80 80-81 81-82 82-83 83-84
FISCAL YEAR
INCLUDES GENERAL.SPECIAL REVENUE AND DEBT SERV. FUNDS
88
Business Other
Licenses Licenses
Intergov- Charges for Fines and Miscel-
erntnental Services Forfeits Interest laneous
88,675
111,253
141,050
151,768
186,845
242,342
247,798
258,663
279,973
351,875
322,203
448,814
908,521
909,201
626,749
829,623
1,048,332
537,476
491,267
2,099,942
459,473
566,129
547,477
873,544
655,588
1,316,172
1,133,947
1,875,243
2,551,262
1,777,587
546,670
643,995
859,008
862,138
851,465
1,168,326
1,737,238
1,986,800
1,413,075
2,182,267
84,279
100,859
139,480
125,964
129,504
152,171
230,684
260,498
231,086
256,471
223,751
214,346
294,892
489,638
817,604
1,143,121
1,472,681
1,533,333
1,211,802
1,155,052
41,365
56,765
89,054
183,828
130,620
167,576
124,791
75,963
179,271
68,002
BUSINESS LICENSE REVENUE
LAST TEN YEARS
MUB
THOUSAND DOLLARS
74-79 78-71 7«-77 77-7»
FISCAL YEAR
CHARGES FOR SERVICES
LAST TEN YEARS
1.MILLION DOLLARS
0.
o.ol
FISCAL YEAR
90
CITY OF CARLSBAD
Ratio General Bonded Debt to Assessed Valuation
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
.Percent of
Fiscal
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
Year
- 75
- 76
- 77
- 78
- 79
- 80
- 81
- 82
- 83
- 84
Net Assessed
Valuation
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)
2,015,289,869(1)
2,194,598,447(1)
Outstanding"
Principal
1,850,000
1,765,000
1,680,000
1,595,000
1,510,000
1,425,000
1,245,000
1,145,000
1,030,000
915,000
•' Total
Valuation
1.5
1.1
1.0
0.8
0.6
0.4
0.3
0.06
0.05
0.04
Per Capita
Debt
92.61
84.17
69.59
57.07
47.04
40.20
34.97
31.65
26.39
22.60
Populati<
19,977
20,970
24,143
27,946
32,100
35,448
35,606
36,172
39,037
40,486
(1) In 1981-82, the County of San Diego began providing assessed valuation data
based on full market value. The 1981-82 and 1982-83 values may be converted
to the basis used between 1973-74 and 1980-81 by multiplying by 25%.
(2) Library and sewer general obligation bonds.
91
CITY OF CARLSBAD
Computation of Legal Debt Margin
Dune 30, 1984
25% of Assessed Valuation $ 548,649,611
Debt Limit 15% of Assessed Valuation 82,297,442
Amount of Debt Applicable to Debt Limit:
(1) Bonded Debt $ 3,700,000
Capitalized Leases 473,598
Total Amount of Debt
Applicable to Debt Limit 4,173,598
LEGAL DEBT MARGIN 78,123,844
Percent of Debt Limit 5.1%
(1) General Obligation Bonds
(Library and Sewer) $ 915,000
Parking Authority 2,545,000
Building Authority 240,000
TOTAL BONDED DEBT $ 3,700,000
92
CITY OF CARLSBAD
Schedule of Direct and Overlaping Bonded Debt
3une 30, 1984
(1)1983-84 Assessed Valuation; $2,2*4,519,647
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) 92
Carlsbad Unified School District Authority
San Marcos Unified School District
San Dieguito Union High School District
Encinitas Union School District
Encinitas Union School District Authority
Other School Districts
Tri-City Hospital District
North San Diego Hospital District
& Authority
Leucadia County Water District
San Marcos County Water & I.D.'s #1, 2, 6 1
Costa Real Municipal Water District
Certificates of Participation
Costa Real (Carlsbad) Municipal Water Dist.
I.D.'s #1, 2, 3, 4 92
Olivenhain Municipal Water District I.D. #1
City of Carlsbad
City of Carlsbad Building Authorities
Vista Irrigation District
TOTOL DIRECT AND OVERLAPPING BONDED DEBT
Percent
Applicable
3.800%
3.955
0.619
25.931
.229-92.242
92.184
20.027
10.219
25.786
25.786
Various
30.254
0.466
53.583
.776-6.824
96.360
.638-96.350
33.373
100.
100.
0.111
Debt as of
6/30/83
$ 6,546,830
1,566,773
2,845,239
116,689
990,363
2,189,370
893,845
541,607
452,544
442,229
20,784
779,040
86,558
487,605
106,538
12,141,360
1,314,107
644,098
• 915,000^
• 2,785,000^
748
35,866,327
Ratios to Assessed Valuation:
Direct Debt ($3,700,000) 0.16%
Total Debt 1.60%
(1)Gross assessed value provided by County of San Diego,
Auditor and Controller (exclusive of Homeowners exemption),
93
CITY OF CARLSBAD
Ratio of Annual Debt Service
For General Bonded Debt to Total General
Expenditures - Last Ten Fiscal Years
Fiscal
Year
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
^80-81
1981-82
1982-83
1983-84
Principal
$ 85,000
85,000
85,000
85,000
85,000
95,000
95,000
100,000
115,000
15,000(3)
Interest
$68,108
65,140
62,215
59,297
56,038
53,164
49,600
46,160
42,757
3 ,022
Debt
Total (1
Service
$153,103
150,140
147,215
144,297
141,038
148,164
144,600
146,160
157,797
53,022
Total ,2)Ratio of Debt
} General Service to General
Expenditures
$ 4,841,800
5,540,958
6,916,158
8,608,080
9,566,353
10,958,699
13,837,197
14,329,047
14,955,142
16,531,162
Expenditures %
3.2%
2.7
2.1
1.7
1.5
1.4
1.0
1.0
1.1
0.0
(1)
(2)
(3)
Debt Service Requirement on General Obligation Bonds
Comprised of 1962 Sewer Bonds Series A, B, C; and
1966 Library Bonds. Excludes Debt Service for Building and
Parking Authorities.
Includes General, Special Revenue, and Debt Service Funds
In 1983-84, the City began recording principal payments in
the year they become payable. The general obligation principal
payments are due duly 1 each year and have previously been paid
by the City on Oune 30 each year.
94
CITY OF CARLSBAD
Revenue Bond Coverage
Water Bonds
Last Ten Fiscal Years
Fiscal
Year
Net Revenue
Direct Available
Gross Operating for Debt
Revenue Expenses Service Principal Interest Total Coverage
Debt Service Requirements
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
$1,112
1,257
1,271
1,388
1,525
1,806
1,997
2,084
1,934
1,672
,969
,334
,353
,195
,143
,817
,591
,262
,415
,564
$ 727
785
897
1,023
1,269
1,333
1.655
1,620
1,945
1,557
,981
,261
,240
,717
,836
,560
,756
,519
,681
,173
$384,
472,
374,
364,
255,
473,
341,
463,
(11,
115,
988
073
113
478
307
257
835
743
266)
390
$70,000
75,000
60,000
85,000
90,000
95,000
105,000
215,000
115,000
—
$105,
100,
96,
91,
85,
80,
74,
69,
64,
56,
096
972
362
245
603
377
985
715
492
875
$175,096
175,972
176,362
176,245
175,603
175,377
179,985
284,715
179,492
56,875
220%
268
212
207
145
270
190
163
(6)
203
WATER ENTERPRISE GROSS REVENUE AND DIRECT OPERATING EXPENSES
LAST TEN YEARS
MILLION DOLLARS
NOTE - During 1M3-M th* City of Carl****'and th* C*a«a Moat UunlolMI lotar Districtontor*a Into a Joint operatingoaro*Bont MI I en •Ignlflaanlly
oharia^d til* City's
rovanuoa ana «K»onaoi
to oator aparatlana.
(Saa Not. 14 I* th*
1fU-tM Fin ' 'Koport)
74-75 7S-7t 71-77 77-71 71-71 7»-»0 tO-«1 *1-«2 *2-»3 19-M
FISCAL YEAR
NET REVENUE AVAILABLE FOR DEBT SERVICE
LAST TEN YEARS
THOUSAND DOLLARS
NOTE - Deal ln« In available ravami* InU-*4 ralakao' to Votar aavratlnfnt. (SM Nolo 14 In Flnaralal Maavrt)
74-7S 7S-7i 7i-77 77-71 7»-7» Tt-tO
FISCAL YEAR
95
CITY OF CARLSBAD
Demographic Statistics
Year
Square
Miles Population
Population
Percent
Change
County
Population
City
Population
Percent
of County
1975
1976
1977
1978
1979
1980
1981
1982
1983
198*
28.3
28.6
28.7
28.7
29.1
29.*
29.7
29.8
32.0
32.0
19,977
20,970
2*, 1*3
27,9*6
32,100
35,**8
35,606
36,172
39,037
*0,*86
10.1%
5.0
15.1
15.8
1*.9
10.*
0.*
1.6
7.9
3.7
1,559,505
1,590,700
1,656,800
1,69*, 800
1,767,*50
1,808,200
1,899,900
1,92*, 700
1,986,035
2,0*0,888
1.3%
1.3
1.5
1.6
1.8
2.0
1.9
1.9
2.0
2.8
1990
(estimate)
1995
(estimate)
2000
(estimate)
75,300
92,100
107,300
(3)
(3)
(3)
(2)
(2)
(2)
(1)
(2)
(3)
Source - County Data Base, San Diego County
County Future Population Estimate Not Available
Population for City General Plan area
POPULATION
LAST TEN TTEAHS
THOUSAND
7t n 77 7%
YEAR
m * IHHUK i not •«mm trr <r n«
96
LlTY OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Fiscal
1974 -
1975 -
1976 -
1977 -
1978 -
1979 -
1980 -
1981 -
1982 -
1983 -
Year
75
76
77
78
79
80
81
82<1
83<1
84<1
Secured
Property
$ 123,890,815
154,000,994
158,745,285
200,426,225
249,889,799
318,374,958
366,867,584
J 1,700, 974, 823
^,027,411,290
^,195, 611, 840
Unsecured
Property
$ 5,056,766
5,428,247
7,381,254
9,115,516
10,823,286
12,937,939
8,877,200
43,077,175
50,604,897
57,309,394
$ 1,441,339
1,729,582
1,149,614
2,189,620
2,171,421
2,354,961
2,578,751
8,210,761
13,841,078
8,401,587
$ 127,506,242
157,699,699
164,976,925
207,352,121
258,541,664
328,957,936
373,166,033
1,735,841,237
2,064,175,069
2,244,519,647
(1) In 1981-82 the County of San Diego began providing assessed valuation data
based on full market value. The 1981-82 values and 1982-83 may be converted
to the basis used between 1972-73 and 1980-81 by multiplying by 25%.
97
Business Net
Inventory Homeowner's Taxable
Exemptions Exemptions Value
$ 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
48,885,200 2,015,289,869
49,921,200 2,194,498,447
98
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Years
Fiscal Year
Building
Permit
Revenue
Percent
Change
Estimated^
Valuation
Business
Licenses
Issued
Percent
Change
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
$ 110,952
190,492
613,427
520,603
119,224
181,839
328,453
271,542
490,100
1,068,876
(52.3)%
71.7
222.0
(15.1)
(77.1)
52.5
80.6
(17.3)
80.5
118.1
$ 23,700,000
41,900,000
85,900,000
52,700,263
79,400,000
198,520,304
$ 88,675
111,253
141,050
151,768
186,845
242,342
247,798
258,663
279,973
351,875
12.9%
25.5
26.8
7.6
23.1
29.7
2.3
4.4
8.2
25.7
(1)Information for fiscal year 1972-73 through 1977-78 is not available.
BUILDING VALUATION
1978-79 TO 1983-84
rioN
200
190
100
MILLION DOLLARS
78-79 79-80 80-81 81-62 82-83 83-84
FISCAL YEAR
VALUATION PRIOR TO 1978-79 NOT CURRENTLY AVAILABLE
99
CITY OF CARLSBAD
Miscellaneous Statistical Information
Date of Incorporation
Type of City
Form of Government
Area
Population
3uly 16, 1952
General Law
Council/Manager
32.0 sq. miles
40,486
Number of Street Lights
Miles of Streets
2,454
138
Fire Protection:
Number of Stations
Number of Firefighters & Officers
3
49
«. Police Protection:
"• Number of Stations 1
Number of Sworn Police Officers 54mm
mt Recreation and Culture:
— Number of Parks 22
— Number of Libraries 2
Number of Volumes 148,365
•m Total Number of City Employees 315
100
CITY OF CARLSBAD
Schedule of Principal Employers
1983-84
Firm
Manufacturing;
Hughes Aircraft Company,
Industrial Products Division
Burroughs Corporation
Sargent Industries
Magnedyne Inc.
Eaton-Leonard Corporation
Dyna Med Inc.
Beckman Instruments
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
Carlsbad Unified School District
Lopez Farms
Sanchez Farms
Number of
Product/Service Employees
Electronic components 1,100
Computer components 375
Industrial seals 280
Electronic motors 220
Vending machines 180
Emergency medical products 160
Microbics operation 150
Swimming pools & related
equipment 75
Shopping center 1,500
Hotel & health spa 1,100
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
Education 350
Tomato/vegetable growers 300
Tomato/vegetable growers 300
Source: City of Carlsbad Chamber of Commerce
101
Deloitte
Haskins Sells
Suite 1900
701 "B" Street
San Diego, California 92101-8198
(619) 232-6500
TWX 910-335-1573
ACCOUNTANTS' REPORT ON COMPLIANCE WITH
AUDIT GUIDELINES FOR REVENUE SHARING AND
ANTIRECESSION FISCAL ASSISTANCE FUND RECIPIENTS
To the Honorable City Council
City of Carlsbad, California
We have examined the financial statements of the various fund
types and account groups of the City of Carlsbad for the year
ended June 30, 1984, and have issued our report thereon dated
October 4, 1984. 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 connection with our examination, we also (1) performed tests
of compliance with the Revenue Sharing and Antirecession Fiscal
Assistance Acts and regulations as required by Sections II.C.3
and III.C.3 of the Audit Guide and Standards for Revenue
Sharing and Antirecession Fiscal Assistance Fund Recipients
(Guide) issued by the Office of Revenue Sharing,U.S.
Department of the Treasury, and (2) compared the data on Bureau
of Census Form RS-8 with the audited records of the City of
Carlsbad as required by Section II.C.4 of the "Guide" for the
year ended June 30, 1983. The financial statements of the City
of Carlsbad for the year ended June 30, 1983 were examined by
other auditors whose report, dated November 23, 1983, expressed
an unqualified opinion on those statements. Our findings are
set forth below:
1. Publication of notice of the Use Report's availability in a
newspaper of general circulation or by alternative means
within 10 days of its filing was not made as required by
Section 51.12(c).
2. Publication of notice of the proposed use hearing on
possible use of entitlement funds in a newspaper of general
circulation did not include the amount of unappropriated
entitlement funds in the recipient's Revenue Snaring Trust
Fund and the amount it expected to receive during its
fiscal year as required by Section 51.13(b)(2).
3. Publication of notice of revenue sharing budget hearing in
a newspaper of general circulation or by alternative means
within 10 days of date of hearing was not made as required
by Section 51.14(c).
4. Publication of notice stating that a summary of the enacted
budget showing intended uses of entitlement funds was
available for public inspection in a newspaper of general
circulation or by alternative means within 30 days of
enactment of budget was not made as required by
Section 51.14(g).
Based on these procedures, we noted no other instances of
noncompliance with the regulations for the year ended June 30,
1984 and no material differences between data on Bureau of
Census Form RS-8 and the records of the City of Carlsbad for
the year ended June 30, 1983.
October 4, 1984
Deloitte
Haskins Sells
Suite 1900
701 "B" Street
San Diego, California 92101-8198
(619) 232-6500
TWX 910-335-1573
ACCOUNTANTS' REPORT ON COMPLIANCE WITH
AUDIT GUIDELINES FOR REVENUE SHARING AND
ANTIRECESSION FISCAL ASSISTANCE FUND RECIPIENTS
To the Honorable City Council
City of Carlsbad, California
We have examined the financial statements of the various fund
types and account groups of the City of Carlsbad for the year
ended June 30, 1984, and have issued our report thereon dated
October 4, 1984. 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 connection with our examination, we also (1) performed tests
of compliance with the Revenue Sharing and Antirecession Fiscal
Assistance Acts and regulations as required by Sections II.C.3
and III.C.3 of the Audit Guide and Standards for Revenue
Sharing and Antirecession Fiscal Assistance Fund Recipients
(Guide) issued by the Office of Revenue Sharing,U.S.
Department of the Treasury, and (2) compared the data on Bureau
of Census Form RS-8 with the audited records of the City of
Carlsbad as required by Section II.C.4 of the "Guide" for the
year ended June 30, 1983. The financial statements of the City
of Carlsbad for the year ended June 30, 1983 were examined by
other auditors whose report, dated November 23, 1983, expressed
an unqualified opinion on those statements. Our findings are
set forth below:
1. Publication of notice of the Use Report's availability in a
newspaper of general circulation or by alternative means
within 10 days of its filing was not made as required by
Section 51.12(c).
2. Publication of notice of the proposed use hearing on
possible use of entitlement funds in a newspaper of general
circulation did not include the amount of unappropriated
entitlement funds in the recipient's Revenue Snaring Trust
Fund and the amount it expected to receive during its
fiscal year as required by Section 51.13(b)(2).
3. Publication of notice of revenue sharing budget hearing in
a newspaper of general circulation or by alternative means
within 10 days of date of hearing was not made as required
by Section 51.14(c).
4. Publication of notice stating that a summary of the enacted
budget showing intended uses of entitlement funds was
available for public inspection in a newspaper of general
circulation or by alternative means within 30 days of
enactment of budget was not made as required by
Section 51.14(g).
Based on these procedures, we noted no other instances of
noncompliance with the regulations for the year ended June 30,
1984 and no material differences between data on Bureau of
Census Form RS-8 and the records of the City of Carlsbad for
the year ended June 30, 1983.
October 4, 1984
ENCINA WATER POLLUTION CONTROL FACILITY
FINANCIAL INFORMATION
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1984
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
ENCINA WATER POLLUTION CONTROL FACILITY
FINANCIAL INFORMATION
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1984
ENCINA WATER POLLUTION CONTROL FACILITY
June 30, 1984
Table of Contents
Page
Number
Accountants' Report 1
Schedule of Ownership of Plant and Equipment 2
Schedule of Participants' Accounts 3
Schedule of Allocation of Revenue, Operating
Costs and Expenses 4
Schedule of Cash in Vista Trust Accounts 5
Schedule of Changes in Reserve for Non-grant
Funded Projects 6
Notes to Financial Schedules 7-12
ELLIS C. DIEHL, C.P.A. (1935-1956)
8RVN B. EVANS, C.P.A.
PHILIP H. HOLTKAMP, C.P.A.
THOMAS M. PERLOWSKI, C.P.A.
WIN G. PETERS. C.RA.
DONALD H. PETERSON, C.P.A.
DONALD E. CALLAHAN, C.P.A.
L. PETER SCHERER, C.P.A.
RODNEY K. McDANIEL, C.P.A.
RALPH H. WElNTRAUB, C.P.A.
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
I 2O WEST WOODWARD AVENUE
ESCONDIDO. CALIFORNIA 92O25-999O
(619) 7-*l-3 1-4 I
January 30, 1985
OTHER OFFICES AT:
2965 ROOSEVELT STREET
CARLSBAD. CALIFORNIA 92OO8-2389
(619) 729-2343
I91O NORTH BUSH STREET
SANTA ANA, CALIFORNIA 92706-2894
(714) 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, 1984 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,
included such tests of the accounting records and such other auditing proce-
dures as we considered necessary in the circumstances.
In our opinion, the schedules referred to above present fairly the
ownership of plant and equipment of the ENCINA WATER POLLUTION CONTROL
FACILITY as of June 30, 1984, 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.
ENCINA WATER POLLUTION CONTROL FACILITY
SCHEDULE OF OWNERSHIP OF PLANT AND EQUIPMENT
June 30, 1984
Percentage Ownership
Unit
A
B
C
D
E
F
G
H
I
J
Office
Plant
Encina
V C B SM L E
100.0
93.0 7.0
84.5 15.5
84.5 15.5
72.7 27.3
62.7 37.3
61.5 38.5 (Includes force main)
48.3 51.7
30.00 25.40 4.59 17.78 16.67 5.56
(Includes Phase III and Phase III-A
expansions) (Note 3)
16.67 28.66 13.00 16.67 16.67 8.33
SYSTEM TOTALS
Equipment and Furnishings (1)
Equipment ( 1 )
Plant Projects and Design Work (1)
TOTAL PLANT AND EQUIPMENT
Total Costs
(Notes 2 and 3)
$ 252,526
326,406
195,513
93,925
169,419
379,776
118,564
513,056
59,270,486
2,171,685
63,491,356
67,358
172,345
245,763
$ 63,976,822
Vista
$ 252,526
303,558
165,208
79,367
123,168
238,120
72,917
247,806
17,781,146
362,020
19,625,836
20,207
51,703
73,729
$ 19,771,475
Carlsbad Buena San Marcos Lteucadia
$ 22,848
30,305
14,558
46,251
141,656
45,647
265,250
15,054,704 $ 2,720,515 $ 10,538,292 $ 9,880,390
622,405 282,319 362,020 362,020
16,243,624 3,002,834 10,900,312 10,242,410
17,109 3,092 11,976 11,229
43,776 7,911 30,643 28,730
62,424 11,280 43,697 40,969
$ 16,366,933 $ 3,025,117 $ 10,986,628 $ 10,323,338
Encinitas
$ 3,295,439
180,901
3,476,340
3,745
9,582
13,664
$ 3,503,331
(1) Distributed on the same basis as Unit I.
See accompanying accountants' report and notes to financial schedules.
2
ENCINA WATER POLLUTION CONTROL FACILITY
SCHEDULE OF PARTICIPANTS' ACCOUNTS
For the year ended June 30, 1984
Vista Sanitation District (Note 6)
City of Carlsbad (Note 6)
Buena Vista Sanitation District
San Marcos County Water District
Leucadia County Water District
Encinitas Sanitary District
TOTALS
Due To (From)
Participants'
June 30, 1983
$ 243,138
125,579
(5,362)
(5,223)
27,389
10,704
$ 396,225
Excess of Costs
And Expenses
Over Revenue
$ 688,430
534,040
100,736
383,316
356,740
98,124
$ 2,161,386
Participants'
Payments
$ 627,047
543,499
94,443
515,071
397,384
124,193
$ 2,301,637
Due To (From)
Participants'
June 30, 1984
$ 181,755
135,038
(11,655)
126,532
68,033
36,773
$ 536,476
See accompanying accountants' report and notes to financial schedules.
3
ENCINA WATER POLLUTION CONTROL FACILITY
SCHEDULE OF ALLOCATION OF REVENUE, OPERATING COSTS AND EXPENSES
For the year ended June 30, 1984
Totals
REVENUE:
Interest income (Ownership Unit I)
Septic haulers income (Ownership Unit I)
Miscellaneous income (Ownership Unit I)
TOTAL REVENUE
OPERATING COSTS:
Unit:
A - Vista outfall (Ownership)
B - Joint Vista - Carlsbad outfall (Ownership)
C - Buena Vista pump station (Ownership)
D, E, F, and H - Vista - Carlsbad sewers
and force mains (Flow, Note 4)
G - Agua Hedionda pump station (Ownership)
I - Encina plant (Flow/Usage, Note 4)
J - Encina ocean outfall (Flow, Note 4)
Capital outlays - (Ownership basis, Note 4)
Industrial waste charges (direct costs)
Vista Meter stations (Flow, Note 4)
Total Operating Costs
ADMINISTRATIVE EXPENSES:
Directors' meetings (direct costs)
Leucadia County Water District administration
(Flow/Ownership, Note 4)
Professional services (Ownership, Note 4)
Insurance (Ownership, Note 4)
Travel and meetings (Flow/Ownership, Note 4)
General manager, administrative assistant
and benefits (Flow/Ownership, Note 4)
Office expense, etc. (Flow/Ownership, Note 4)
Other (Flow/Ownership, Note 4)
Total Administrative Expenses
TOTAL OPERATING COSTS AND
ADMINISTRATIVE EXPENSES
EXCESS OF COSTS AND EXPENSES OVER REVENUE
120,473
59,963
5,803
186,239
130,398
92,683
1,769,287
19,561
95,726
18,570
11,084
2,137,309
2,500
14,500
21,464
30,503
5,179
95,125
11,155
29,890
210,316
2,347,625
$ 2,161,386
Vista
35,951
17,774
1,729
55,454
110,186
682,449
525
4,223
6,417
9,096
1,539
27,615
3,272
8,748
61,435
743,884
$ 688,430
Carlsbad
30,441
14,996
1,461
46,898
20,212
529,247
450
3,544
5,434
7,702
1,299
23,154
2,752
7,356
51,691
580,938
$ 534,040
Buena
$ 5,501
2,742
266
8,509
99,283
500
660
982
1,392
237
4,323
508
1,360
9,962
109,245
$ 100,736
San Marcos
21,304
10,902
1,045
33,251
57,000
472,454
5,379
28,683
2,682
6,065
35,683
435,481
4,452
24,285
4,115
5,019
91,160
1,004
4,389
2,730
353,167
3,866
16,999
3,507
377,539
625
2,720
3,803
5,390
938
17,945
2,067
5,540
39,028
416,567
$ 383,316
Leucadia
$ 19,973
. 10,294
983
31,250
328,319
3,972
15,938
3,001
351,230
300
2,593
3,566
5,053
884
17,137
1,963
5,264
36,760
387,990
$ 356,740
Encinitas
$ 7,303
3,255
319
10,877
88,706
888
5,432
2,535
97,561
100
760
1,262
1,870
282
4,951
593
1,622
11,440
109,001
$ 98,124
See accompanying accountants' report and notes to financial schedules.
4
ENCINA WATER POLLUTION CONTROL FACILITY
SCHEDULE OF CASH IN VISTA TRUST ACCOUNTS
For the year ended June 30, 1984
CASH IN TRUST ACCOUNTS - July 1, 1983
CASH RECEIPTS:
Contributions from participants
Interest earned
Clean water grants - Phase III
Sale of personal property
Other
CASH EXPENDITURES:
Encina expansion - Phase III
CASH IN TRUST ACCOUNTS - June 30, 1984
(Note 1)
Phase III
$ 2,987,135
304,263
1,164,700
22,000
424 1,491,387
(3,233,394)
$ 1,245,128
See accompanying accountants' report and notes to financial schedules.
5
ENCINA WATER POLLUTION CONTROL FACILITY
SCHEDULE OF CHANGES IN RESERVE FOR NON-GRANT FUNDED PROJECTS
For the year ended June 30, 1984
BALANCE IN RESERVE - July 1, 1983 $ 150,460
ADD: CONTRIBUTIONS FROM PARTICIPANTS 28,999
LESS: NON-GRANT FUNDED PROJECT EXPENSES:
Waiver application 6 ,917
BALANCE IN RESERVE - June 30, 1984 (Note 1) $ 172,542
t
See accompanying accountants' report and notes to financial schedules.
6
ENCINA WATER POLLUTION CONTROL FACILITY
NOTES TO FINANCIAL SCHEDULES
June 30, 1984
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 establish-
ment, construction, operation and maintenance of facilities for the trans-
mission, treatment and disposal of sewage which facilities shall comprise
a single system of sanitation works.
By virtue of subsequent amendments and supplements to this basic agreement,
Leucadia Gouty Water District, Buena Vista Sanitation District, San Marcos
County Water District, and Encinitas Sanitary District also have become
participants in the Facility.
As of July 1, 1979, Leucadia County Water District became the operator and
administrator of the Facility and is responsible for the management,
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 par-
ticipants, but not yet disbursed for construction.
The reserve for non-grant funded projects is for expenditures for Vista
Administration cost studies for the Ocean Waiver Application, Solids
Disposal Outfall Pump, Outfall repair and Outfall Diffuser Projects. Costs
will be allocated based on ownership in Unit I after Phase III-A enlarge-
ment (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, 1984
PLANT AND EQUIPMENT:
Additions to plant and equipment consist of the following during the year
ended June 30, 1984:
Balance Balance
July 1, 1983 Additions Deletions June 30, 1984
System/units
Office equipment
and furnishings
Plant equipment
Encina plant
projects
Phase III
Expansion
Phase III-A
Expansion
Construction in
Progress:
Phase III
Phase III-A
TOTALS
Construction in Progress:
After completion of the Encina Phase III and III-A enlargements, Unit I
was enlarged from 13.75 MGD to 22.5 MGD, and each of the participants
ownership and capacity rights in Unit I and Unit J became as follows:
UNIT I
After Phase III Enlargement After Phase III-A Enlargement
Participant MGD Percentage MGD Percentage
$
$
6,690,254
48,929
146,259
206,524
15,734,266
38,606,744
453,997
61,886,973
$ 18,429
38,058
39,239
40,612,839
453,997
2,006,095
$ 43,168,657
$ 6,690,254
67,358
$ 11,972 172,345
245,763
56,347,105
453,997
40,612,839
453,997
$ 41,078,808 $ 63,976,822
Vista
Carlsbad
Buena
San Marcos
Leucadia
Encinitas
TOTALS
5.40
4.56
0.82
3.22
3.00
1.00
18.00
30.00
25.33
4.55
17.89
16.67
5.56
100.00
6.750
5.716
1.034
4.000
3.750
1.250
22.50
30.00
25.40
4.59
17.78
16.67
5.56
100.00
See accompanying accountants' report.
ENCINA WATER POLLUTION CONTROL FACILITY
NOTES TO FINANCIAL SCHEDULES
(Continued)
June 30, 1984
3. PLANT AND EQUIPMENT (Continued):
Construction in Progress (Continued):
UNIT J
Participant MGD Percentage
16.67
28.66
13.00
16.67
16.67
8.33
Vista
Carlsbad
Buena
San Marcos
Leucadia
Encinitas
6.34
10.89
4.94
6.33
6.33
3.17
TOTALS 38.00 100.00
4. SEWAGE FLOW AND USAGE ALLOCATION:
Sewage flow allocations for the year ended June 30, 1984 for the following
units are as follows:
*MGD Units D, E, F, G, H
ADF & Vista-Meter Stations Unit J
Vista Sanitation
District (Note 6) 3.92 54.7 27.5
City of Carlsbad (Note 6) 3.25 45.3 22.8
Buena Sanitation District .73 5.1
San Marcos County Water
District 2.82 19.8
Leucadia County Water
District 2.90 20.3
Encinitas Sanitary
District 1 .64 4.5
TOTALS 14.26 100.0% 100.0%
*Millions of Gallons per day (MGD) and Average Daily Flow (ADF).
See accompanying accountants' report.
9
ENCINA WATER POLLUTION CONTROL FACILITY
NOTES TO FINANCIAL SCHEDULES
(Continued)
June 30, 1984
4. SEWAGE FLOW AND USAGE ALLOCATION (Continued):
Sewage flow allocations for Unit I and administrative for the four months
ended October 31, 1983 are as follows:
*MGD Unit I and
ADF Administrative
Vista Sanitation District (Note 6) 3.93 27.4%
City of Carlsbad (Note 6) 3.24 22.5
Buena Sanitation District .64 4.5
San Marcos County Water District 2.98 20.7
Leucadia County Water
District 2.92 20.3
Encinitas Sanitary District .66 4.6
14.37 100.0%
As of November 1, 1983, after completion of the Phase III and III-A expan-
sions, all administrative, maintenance and operation expenses for Unit I
of the Joint System are allocated to the member agencies based on each
agencies' percentage of ownership and usage (actual flow and strength) of
Unit I.
Administrative, capital outlay and other fixed costs are allocated based
on ownership (Note 3). Chemicals, utilities and other variable costs are
allocated based on usage [sewage flow, biochemical oxygen demand (BOD) and
suspended solids (SS) received at the Encina Plant].
As of the date of this report this change in method of allocating these
expenses has been approved by Encina's legal counsel, engineers and
management but has not been formally authorized by the member agencies.
See accompanying accountants' report.
10
ENCINA WATER POLLUTION CONTROL FACILITY
NOTES TO FINANCIAL SCHEDULES
(Continued)
June 30, 1984
4. SEWAGE FLOW AND USAGE ALLOCATION (Continued):
Sewage usage allocations for the eight months ended June 30, 1984 are as
follows:
Vista Sanitation
District (Note 6)
City of Carlsbad
(Note 6)
Buena Sanitation
District
San Marcos County
Water District
Leucadia County
Water District
Encinitas Sanitary
District
TOTALS
MGD
ADF
3.91
3.25
.67
2.70
2.35
.64
13.52
Flow
%
28.9
24.0
5.0
20.0
17.4
4.7
100.0%
BOD
LBS/DAY
4,895
5,228
1,191
4,344
3,934
1,068
20,660
BOD
%
23.7
25.3
5.8
21.0
19.0
5.2
100.0%
SS
LBS/DAY
5,189
5,743
1,400
4,479
4,150
1,025
21,986
SS
%
23.6
26.1
6.4
20.4
18.9
4.6
100.0%
See accompanying accountants' report.
11
ENCINA WATER POLLUTION CONTROL FACILITY
NOTES TO FINANCIAL SCHEDULES
(Continued)
June 30, 1984
5. PUBLIC EMPLOYEES RETIREMENT SYSTEM:
The Facility is a participant in the Public Employees Retirement System
(PERS) of the State of California covering all the Facility's permanent
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, 1984 was $ 120,871, of which approximately $ 17,790 was for
prior service costs. Actuarial information related to the plan was not
available from PERS at June 30, 1984. However, at June 30, 1983, the plan
net assets available for benefits totalled $ 463,012, and the present
value of the Facility's and Leucadia County Water District's employees
unfunded obligation for prior service costs totalled $ 302,075, 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
benefits is indeterminable at this time.
6. CONTINGENCY
Starting in March 1983 management estimates that Vista's flow meter may
have been off by up to 10% based upon the results generated by a new
method of calibration. Some adjustment (decrease) to Vista's flows may be
necessary in light of this new information but additional testing and
calibrating is needed before an accurate amount can be determined. Any
decrease in Vista's flows would result in a corresponding increase in
Carlsbad's flows due to the nature of the metering method. The actual
amount of the adjustment, if any, is indeterminable at this time.
See accompanying accountants' report.
12
Deloitte
Haskins Sells
CARLSBAD REDEVELOPMENT AGENCY
Financial Statements For The
Year Ended June 30, 1984
And Auditors' Opinion
c
Deloitte
Haskins Sells
Suite 1900
701 "B" Street
San Diego, California 92101-8198
(619) 232-6500
TWX 910-335-1573
ACCOUNTANTS' REPORT ON
COMPLIANCE WITH AUDIT GUIDELINES FOR
CALIFORNIA REDEVELOPMENT AGENCIES
Board of Directors
Carlsbad Redevelopment Agency
Carlsbad, California
We have examined the combined financial statements of the
Carlsbad Redevelopment Agency, as of and for the year ended
June 30, 1984, and have issued our report thereon dated
October 4, 1984. Our examination was made in accordance with
generally accepted auditing standards and, accordingly,
included such tests of the accounting records and other
auditing procedures as we considered necessary in the
circumstances.
In connection with our examination of the financial statements
of the Carlsbad Redevelopment Agency for the year ended
June 30, 1984, we have performed, to the extent applicable, the
tasks contained in Sections I through V 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
Carlsbad Redevelopment Agency complied in all material respects
with criteria established in the State Controller's guidelines
referred to above.
October 4, 1984
CARLSBAD REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1984
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The different funds and account group in which financial data
pertaining to the Carlsbad Redevelopment Agency (the Agency) are
recorded is as follows:
Low and Moderate Income Housing Special Revenue Fund - This fund
is utilized to account for tax increment (2070) revenue restricted
as to use for expenditures in connection with low and moderate
income housing.
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
(8070; and investment income.
Redevelopment Project Fund - This fund accounts for all revenues
andcosts ofimplementing Redevelopment Projects 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.
Long-Term Debt Account Group - This account group is used to
account for, in a separate self-balancing group of accounts, the
Agency's outstanding indebtedness.
Relationship to the City of Carlsbad
The Carlsbad Redevelopment Agency is an integral part of the
reporting entity of the City of Carlsbad. The funds and account
group of the Agency have been included within the scope of the
general purpose financial statements of the City because .the City
Council of the City of Carlsbad exercises oversight
responsibility over the operations of the Agency. Only the funds
and account group of the Agency are included herein; therefore,
these financial statements do not purport to represent the
financial position or results of operations of the City of
Carlsbad, California.
Basis of Accounting
The modified basis of accounting is utilized by the governmental
fund types. Under the modified accrual basis of accounting,
expenditures, other than interest on long-term debt, are recorded
when the related liability is incurred and revenues are
recognized when they become measurable and available to finance
the Agency in the current period.
Totals Columns
Columns in the accompanying financial statements captioned
"Totals (Memorandum Only)" are presented as additional analytical
data and do not present the financial statements in accordance
with generally accepted accounting principles.
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 of the Agency are to eliminate
blightened influences 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 approved administration
expenditures. At June 30, 1984, outstanding advances from the
City totaled $569,766. Advances from the City require interest
at 1070 per year.
4. SUBSEQUENT EVENT
On August 21, 1984 the City Council of Carlsbad adopted a
resolution approving a loan to the Agency of up to $802,125 for
the instalation of the Central Business District storm drain.
The loan will require interest at 10% per year and will be repaid
using tax increment funds.
Deloitte
Haskins Sells
Suite 1900
701 "B" Street
San Diego. California 92101-8198
(619) 232-6500
TWX 910-335-1573
AUDITORS' OPINION
The Board of Directors
Carlsbad Redevelopment Agency
Carlsbad, California
We have examined the combined balance sheets of the various
funds and account group of the Carlsbad Redevelopment Agency as
of June 30, 1984 and the related statements of revenues,
expenditures, and changes in fund balances for the year then
ended. 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 financial statements present
fairly the financial position of the various funds and account
group of the Carlsbad Redevelopment Agency as of June 30, 1984
and the results of its operations and the changes in its 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.
October 4, 1984
CARLSBAD REDEVELOPMENT AGENCY
COMBINED BALANCE SHEETS, JUNE 30, 1984
ASSETS
Cash and cash equivalents
Amount to be provided for retirement of advances
TOTAL ASSETS
Governmental Fund
Low and Debt
Moderate Income Service
Note Housing Fund Fund
$35,951 $143,838
$35.951 $143,838
Types
Redevelopment
Project
Fund
$2,058
$2.038
Long-term
Debt Account
Group
$569,766
$569.766
Totals
(Memorandum Only)
June 30, June 30,
1984 1983
$181,847 $ 70,792
569,766 361,222
$751.613 $432.414
LIABILITIES AND FUND BALANCE
LIABILITIES:
Accounts payable
Accrued expenses
Advances from the City of Carlsbad
Total liabilities
FUND BALANCE:
Reserved for debt service
Reserved for low and moderate income housing
Total fund balances
TOTAL LIABILITIES AND FUND BALANCE
$35.951
35,951
$143,838
143,838
$]43.838
$ 120
1,938
2,058
$569,766
569,766
$569.766
$ 120 $ 53
1,938 714
569,766 361,622
571,824 362,389
143,838
35,951
179.78Q
56,020
14.005
70,025
$751.613 $432.414
See accompanying notes to financial statements.
CARLSBAD REDEVELOPMENT AGENCY
COMBINED STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 1984
Note
REVENUES : 1
Tax increment revenue
Interest income
Total revenues
EXPENDITURES : 1
Administration :
Salaries and fringe benefits
Professional services
Services from the City of Carlsbad
Other
Debt service
Total expenditures
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES - Proceeds from Advances from the City of Carlsbad
EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
Governmental Fund Types
Low and Debt Redevelopment
Moderate Income Service Project
Housing Fund Fund Fund
$19,795 $ 79,179
2,151 8,639
21,946 87,818
$ 62,117
5,870
35,189
8,917
33,812
33,812 112,093
21,946 54,006 (112,093)
33,812 112,093
21,946 87,818
14,005 56,020
$35,951 $143.838 $ -0-
Totals
(Memorandum Only)
June 30, June 30,
1984 1983
$ 98,974
10,790
109,764
62,117
5,870
35,189
8,917
33,812
145,905
(36,141)
145,905
109,764
70,025
$179.789
$ 70,025
70,025
33,650
14,790
50,333
4,293
23,505
126,571
(56,546)
126,571
70,025
$ 70.025
See accompanying notes to financial statements.
Deloitte
Haskins Sells
Suite 1900
701 "B" Street
San Diego, California 92101-8198
(619) 232-6500
TWX 910-335-1573
City of Carlsbad October 4, 1984
1200 Elm Avenue
Carlsbad, California 92001
Honorable City Council
of the City of Carlsbad:
We have examined the financial statements of the City of
Carlsbad for the year ended June 30, 1984 and have issued our
report thereon dated October 4, 1984. As part of our
examination, we made a study and evaluation of the City's
system of internal accounting control to the extent we
considered necessary to evaluate the system as required by
generally accepted auditing standards. The purpose of our
study and evaluation was to determine the nature, timing, and
extent of the auditing procedures necessary for expressing an
opinion on the City's financial statements. Our study and
evaluation was more limited than would be necessary to express
an opinion on the system of internal accounting control taken
as a whole.
The observations reported herein should be considered in the
context of the responsibility of management for establishing
and maintaining a system of internal accounting control, the
objectives of and inherent limitations of such a system, and
the definition of a material weakness for purposes of this
report, which are described in the Appendix to this report.
Our study and evaluation made for the limited purpose described
in the first paragraph would not necessarily disclose all
material weaknesses in the system. Accordingly, we do not
express an opinion on the system of internal accounting control
of the City taken as a whole. However, our study and
evaluation disclosed no condition that we believe is a material
weakness.
The attached report includes our recommendations concerning
administrative and operating matters that are not directly
related to internal accounting control. These recommendations,
which result from our observations during our examination and
are not based on a special study, concern broad areas that
deserve special management consideration for action. Also
included are our observations and recommendations concerning
conditions that, although not considered by us to be material
weaknesses, are weaknesses in internal accounting control,
including data processing controls, for which corrective action
should be considered.
This report is intended solely for the use of management and
should not be used for any other purpose.
We would like to express our appreciation for the cooperation
and assistance afforded us during our audit by both management
and staff. If you have any questions concerning these
comments, or if there are any related matters you wish to
discuss, we would be pleased to meet with you at your
convenience.
Yours truly,
TABLE OF CONTENTS
Page Number
I. Administrative and Operating Matters
1. Fiscal Management 1
2. Cash Management 1
3. Validation of Revenue and Fees 2
4. Mortgage Revenue Bonds 2
5. Budgets 2
6. Interest Revenue Allocation 3
7. Fringe Benefits 3
8. Central Garage Charges 4
9. Automation of Fixed Asset Records 4
II. Internal Accounting Control Matters
1. Accuracy of Accounting Records 5
2. Check Signing Machine 5
3. Journal Entries 5
4. Quasi-external Transactions 6
5. Cash 6
6. Cash Receipts 6
7. Cash Disbursements 7
8. Accounts Receivable 7
9. Inventories 7
10. Fixed Assets 8
11. Accounts Payable 9
12. Long-Term Debt 9
13. Fund Balances 9
III. Internal Control Matters Related to Data Processing
1. Computer Room/Tape Library Access 10
2. Terminal Access 10
3. Development Tools and Compilers 11
4. Output Controls 11
5. Dial-Up Telecommunications 12
6. Water/Utility Billing System Passwords 13
7. Water/Utility Billing System Documentation 13
8. Disaster Recovery Plan 13
9. Data Processing Policies and Standards 14
I. ADMINISTRATIVE AND OPERATING MATTERS
1. Fiscal Management
Observation: The City has experienced tremendous growth in
its operations, population, revenues and expenditures, and
expectations of its constituencies. The complexities of
this environment will increase as Carlsbad is projected to
be among the fastest growing areas of San Diego County
during the remainder of this century.
Recommendation: In order to meet the demands of the next
five to fifteen years, the City should review its overall
financial management organization and controls. Such a
review should include a comprehensive assessment of the
Finance Department organization, classifications and
staffing, appropriateness of the distribution of work and
responsibilities, and other areas.
2. Cash Management
Observation; We noted a number of areas that indicate
improvements can be made in the cash management area. For
example, during the performance of our audit tests we noted
that the City at times has significant amounts of cash on
hand that are not deposited until the following day. Also,
there are several bank accounts that have little or no
activity.
Recommendation: We recommend that the City initiate a
comprehensive cash management review covering policies and
procedures for billings, collections, expenditures, and
investments. Such a review could result in increased
revenue for the City. The benefit of actions such as the
following should be considered:
Have remittances sent directly to a bank lock box in
order to accelerate deposits.
Review cash management policies so as to determine
the maximum amount of funds that could be maintained
in interest-bearing checking or money market accounts.
Review all checking accounts and close inactive
accounts.
Since the City handles large amounts of cash, it is
imperative that such a review be completed as soon as
possible. It is likely that this review will result in
increased revenues. The City Treasurer is currently
working to activate a cash management program.
3. Validation of Revenues and Fees
Observation; There has been a significant increase in the
level of commercial business and construction activity in
the area served by the City. The volume of related revenue
from sales tax, permit fees, transient occupancy tax,
licenses, etc. has experienced concommitant growth.
Recommendation: The manner of calculating revenues related
to such activities varies and includes flat fees, use of
various formulae, voluntary reporting, etc. We suggest the
City review alternatives for validating and verifying the
accuracy and completeness of various revenue categories.
Such alternatives would generally be performed on a test
basis and could be performed by special outside studies, an
internal audit-type function or other means.
4. Mortgage Revenue Bonds
Observation: The City plans to issue additional mortgage
revenue bonds during fiscal year 1985. During 1984 a new
tax law was passed allowing cities to issue Mortgage Credit
Certificates. These certificates provide the same
advantages as Mortgage Revenue Bonds without the expense of
underwriters' fees and administration/trustee costs.
Recommendation; Prior to the issuance of additional
Mortgage Revenue Bonds, the City should review the
advantages and disadvantages of Mortgage Credit
Certificates to see if this is a preferred alternative.
5. Budgets
Observation: Estimated/budgeted revenues are not
maintained on the general ledger as are expenditure amounts.
Recommendat ion: The City should record budgeted revenues
in the general ledger. Including the budgeted revenue
amounts in the general ledger and in the resulting trial
balances, gives management additional information that
could indicate general ledger errors or matters that would
require investigation or attention.
Observation; The general ledger provides current budget
data but does not maintain detail on the original budget
plus amendments that result in current budget amounts. If
any question arises as to the accuracy of the budget amount
or whether any amendment has been properly reflected in the
budget amount, all activity has to be manually created in
order to investigate such questions.
Recommendation; The City should consider modifying the
general ledger programs such that current year budget
charges are documented and accessible by the EDP system.
Subsequent to the completion of our audit procedures, we
understand that steps are being taken to comply with this
recommendation.
Observation; The City appropriates and budgets funds for
capital projects that include prior years' unexpended plus
current year's anticipated expenditures. It appears that
the current year's appropriations are optimistic and can
result in significant budget vs actual differences on an
annual basis.
Recommendation: When appropriating capital projects,
budget amounts to be expended by each fiscal year
affected. This would also be advantageous for cash flow
projections which rely on budgeted amounts.
6. Interest Revenue Allocation
Observation: The City does not have documentation
describing the interest revenue allocation to the numerous
funds. Also, the allocation is computed manually.
Recommendation; Provide a written policy that documents
the method of allocating interest revenue to various
funds. In the event that accounting personnel are absent
or terminate their employment, it is important that all
significant functions and tasks are adequately documented
to ensure that other accounting personnel will consistently
perform all necessary duties.
Also, the actual process should be automated to directly
interface with the general ledger.
7. Fringe Benefits
Observation; The City charges employee fringe benefit
expenditures and credits the fringe benefit liability based
on budgeted amounts. The liability is relieved based upon
actual expenditures.
Recommendation: To prevent inaccurate reporting of
financial information, all expenditures should be recorded
based upon actual expenses incurred or accounts reconciled
to actual amounts on a monthly basis. Subsequent to the
completion of our audit procedures, we understand that
steps are being taken to comply with this recommendation.
8. Central Garage Charges
Observation; User departments are charged based on
budgeted amounts instead of actual services utilized. It
is important that any department using the services of the
Central Garage be charged for the actual services received
in order that meaningful financial information is presented,
Recommendat ion; For departments receiving central garage
services, charge for actual services rendered. Subsequent
to the completion of our audit procedures, we understand
that steps are being taken to comply with this
recommendation.
9. Automation of Fixed Asset Records
Observation; Detail property records are maintained on a
manual system.
Recommendation: The City should automate such property
records in order to improve the accuracy of accounting for
property and reduce the amount of time spent by the
accounting staff.
II. INTERNAL ACCOUNTING CONTROL MATTERS
Accuracy of Accounting Records
Observation; Detail subsidiary records supporting general
ledger balances are not being reconciled to the general
ledger on a timely basis. Certain general ledger balances
were not reviewed and analyzed prior to year-end closing of
the accounts.
Recommendation: Accounting policies should be established
to require the reconciliation of all subsidiary records to
the general ledger as part of each month-end closing.
Also, general ledger accounts should be reviewed at least
quarterly to ensure the timely detection of errors. This
will reduce the number of material adjustments at year-end
and related additional time required.
Check Signing Machine
Observation: Checks issued by the City are signed using a
check signing machine. Certain control functions built
into the machine should be utilized in order to strengthen
internal controls.
Recommendation; Implement the following controls related
to the check signing machine:
The signature plate should be removed from
the machine when not in use and kept under
the control of an individual other than the
operator.
The check signing machine has a log in which
the number of times that it is used is
recorded. The log should be compared to the
number of checks signed after each use in
order to determine if there has been any
unauthorized operation.
3. Journal Entries
Observation; Certain journal entries were improperly
prepared and recorded, resulting in errors in the general
ledger. Also, journal entries used to record certain
transactions seem overly complex.
Recommendation: The Finance Director or his designate
should review all journal entries prior to their recording
in the general ledger. It may be useful to develop a
standardized set of entries for those that recur monthly.
A. Quasi-external Transactions
Observation; The General Fund treats the fees charged
other funds for engineering services as a reimbursement of
costs, which is not in accordance with Governmental
Accounting Standards.
Recommendation; Record these interfund services as
revenues so that revenue and expenditures of activities
financed through governmental funds will be reflected
accurately in the financial statements.
5. Cash
Observation: At year-end, the general ledger cash account,
the cash control account, and the Treasurer's cash report
each indicated different balances. We also noted that
these three areas are not being reconciled on a timely
basis.
Recommendation; Establish a policy that would require the
reconciliation of this financial data on a monthly basis.
The City should also consider modifying the general ledger
programs so that cash receipts and disbursements
automatically interface with the cash control account.
6. Cash Receipts
Observation: There is unnecessary handling of
miscellaneous cash receipts before initial recording. Cash
receipts received in the mail are forwarded from the
cashier to the Finance Department Secretary who then
forwards them to the Accountant to determine proper
posting. This creates opportunities for a check to be
removed before depositing.
Re commend a t i on: The Finance Department Secretary should
endorse all checks immediately upon receipt and prepare the
bank deposit. She should then photocopy all checks
received and send the copies to the Accountant for posting.
Observation; The original documents or remittance advices
supporting cash receipts are not always retained.
Recommendation; In the event that a question arises
regarding a cash receipt, it is important to retain all
documents supporting cash receipts and not substitute
prenumbered forms. The accounting policy should be amended
so that all original supporting documents are retained.
7. Cash Disbursements
Observation; All invoices supporting cash disbursements
are not physically cancelled after being approved for
payment.
Recommendation: To prevent the resubmission of paid
invoices, all invoices should be cancelled by one of the
reviewers after approval for payment.
8. Accounts Receivable
Observation: The accounts receivable for unpaid water,
sewer, and trash bills are all recorded in the Water
Utility Fund. The City treats this receivable as being
100% water for ease of recording and considers the sewer
and trash portion as being 100% collected.
Recommendation: Record receivables in the proper funds in
order to prevent the presentation of financial information
that could be confusing to users of financial statements.
Observation: During our review of the detail accounts
receivable, we noted several uncollectible amounts.
Recommendat ion: Periodically review the collectibility of
all accounts receivable and provide an allowance for
uncollectible accounts.
9. Inventories
Observation; The City does not maintain a book inventory
for Central Garage supplies and spare parts.
Recommendation: Evaluate the relative costs and benefits
of maintaining a book inventory of supplies and spare parts
for the Central Garage and, if warranted, establish such an
inventory. A book inventory could provide useful
information for managing that department.
Observation; Based on the Water Utility's annual
inventory, there was a significant write-down of the
general ledger inventory balance with no specific cause
identified.
Recommendation; Take periodic physical inventories to
ensure early identification of the cause of a shortage, and
to reduce potential adjustments at year-end.
Observation: Part of the book to physical inventory
adjustment appears caused by the City not preparing work
orders for scrap inventory.
Recommendation: Prepare work orders for all activity
affecting inventory, including scrapping of inventory.
10. Fixed Assets
Observation: The City does not have a written accounting
policy concerning capitalization and depreciation of fixed
assets. Also, some departments have made decisions
concerning capitalization of assets that are inconsistent
with the intent of the finance department.
Recommendation: Establish a formal written policy on
capitalization and depreciation of assets and inform the
necessary departments of this policy.
Observation: All purchases of capital assets are recorded
in one capital expenditure account. Prior to recording
amounts in the General Fixed Asset Accounts, accounting
personnel review all charges to the capital expenditures
account to determine proper classification. The review by
accounting personnel creates a duplication of effort.
Classification could generally be accomplished when the
expenditure is originally approved for payment.
Recommendation: Establish additional expenditure accounts
in order to provide sufficient detail to allow for the
transfer of the expenditure to the property accounts
without performing a subsequent review of supporting
documentation.
Observation; The City tests the detail property records by
periodically selecting a sample from the detail property
records and observing the actual property. The present
procedure tests the records only for recorded property
items that may no longer exist. It does not test whether
the City has acquired property but failed to record it.
Recommendation: The City should supplement the above
procedures by physically observing property on a test basis
and tracing such items into the detail property records.
Observation: Water meters loaned to users are recorded in
inventory.
Recommendation; Reclassify loaned water meters to property
to correctly reflect the nature of the asset.
11. Accounts Payable
Observation; At year-end the City accrued payables which
included inappropriate transactions.
Recommendation: Accrue payables at year-end for goods
received and services rendered prior to year-end. Payments
on debt or transfers between funds should not be included
in the year-end accrual.
12. Long-term Debt
Observation: Debt payments have been erroneously charged
to insurance premiums and taxes.
Recommendation; The City should charge debt payments to
principal reductions and interest expenses, thus
eliminating adjustments at year-end. Subsequent to the
completion of our audit procedures, we understand that
steps are being taken to implement this recommendation.
13. Fund Balances
Observation; During the current year, we noted entries
directly to fund balance. The only entries that should
affect fund balance are the year-end closing of accounts
related to revenues, expenditures, and transfers, as well
as prior period adjustments. When these amounts are
recorded directly to fund balance, additional effort is
required at year-end to analyze and identify the nature of
such entries.
Recommendation; Separate accounts should be established
for operating transfers, residual equity transfers, and any
other entries that could affect fund balance.
III. INTERNAL CONTROL MATTERS
RELATED TO DATA PROCESSING
1. Computer Room/Tape Library Access
Observation; The computer room, which includes the tape
library,Femains unlocked during normal working hours. A
cipher lock has been installed on the computer room door
and is locked from 6:00 p.m. to 8:00 a.m. However, this
lock is deactivated during normal working hours and
therefore does not provide adequate controls over access to
the computer room and tape library. The principal reasons
for not using the lock are that i) users constantly need
access to the printer in the computer room to retrieve
reports (refer also to recommendations entitled "Output
Controls"), and ii) some Finance Department files and
supplies are stored in the computer room.
Recommendation: Activate the computer room cipher lock at
all times although some temporary inconvenience may
result. It is planned that the Finance Department will
move to a separate building during fiscal year 1985,
thereby moving related files and supplies. Consideration
is also being given to acquiring an additional printer for
the Finance Department, to be installed in its new
location. These changes should alleviate most of the
computer room traffic, at which time the controls over
access will be strengthened.
2. Terminal Access
Observation; All terminals can access the computer
whenever it is operating, generally 24 hours per day,
except when maintenance is performed. The on-line
application systems are available to users whenever the
computer is running unless back-up is taking place. The
routine availability of terminals with full access
capabilities outside of normal hours represents a weakness
in access controls. At such times, there is a greater
possibility of unauthorized programming or transaction
entry being performed without detection.
Recommendation: Logically disconnect terminals from the
computer outside of normal hours. Exceptions can be made
to this procedure when access to the computer is required
by users and is authorized by management.
3. Development Tools and Compilers
Observation; There is inadequate control over the use of
the following development tools and compilers:
Quick (Screen handling)
Quiz (Report writing)
QTP (Batch processing)
BASIC, COBOL and FORTRAN compilers
There are no password restrictions over access and use of
any of the above. They can each be run from any of the
user terminals to develop simple applications. No specific
authorization procedures for accessing such systems by a
user exist. Applications developed with these systems can
be used to access or modify data without any formalized
evaluation or testing. Restrictions over the use of
development tools and compilers are needed to prevent
unauthorized or inadequately tested programs from modifying
production data.
Re commend a t i on; Controls over the use of development tools
and compilers should be strengthened as follows:
Implement password controls over access to
these tools and compilers.
Require management's specific approval for the
use of those tools by users outside of the DP
department to develop major applications.
Independently review major applications
developed by users before they are allowed to
go into production.
A. Output Controls
Observation: There are inadequate procedures to ensure
that the results of processing are distributed in a timely
manner to intended, authorized recipients. Most reports
are initiated on-line by users at their terminals. Users
generally enter the computer room to collect requested
reports directly from the printer. Reports are often
collected without DP personnel first removing reports from
the printer and logging their production. Users are not
required to sign for receipt of reports. These procedures
have the following weaknesses:
The computer room has to be left unlocked
during the day, due to the continual traffic in
and out of the computer room to collect
reports. (Refer also to recommendation
entitled, "Computer Room/Tape Library Access".)
There is no audit trail over which reports were
produced and who received them.
It would be difficult to detect the removal of
a report by an unauthorized party.
Recommendation: Strengthen output controls as follows:
Do not allow users into the computer room to
collect reports.
DP personnel should remove reports from the
printer and record their production in an
output log.
Users should be required to sign the output log
when they collect a report.
A printer may be acquired by the Finance Department to be
used within the Department. All finance reports would be
directed to this printer.
If such a plan is implemented, the Finance Department
should also implement the use of an output log to track the
production and distribution of the Department s reports.
5. Dial-Up Telecommunications
Observation; There are dial-up facilities for the computer
using an auto-answer modem which are mainly used to
facilitate remote software support and diagnostics.
Dial-up telecommunications represent an inherent risk of
unauthorized access, and hence their use on machines
holding production data should be restricted.
Recommendation: Implement call-back procedures to limit
dial-up to known, authorized terminals. Under these
procedures, the line is disconnected after a dial-up call
is received, and the would-be user location is called back
by the computer. We understand from management that the
acquisition of a call-back modem has been included in the
budget for fiscal year 1985.
6. Water/Utility Billing System Passwords
Observation; There are insufficient password controls over
the use of payment and usage transactions in the
water/utility billing system. No password is required to
gain access to the water/utility billing system. Within
the system, only a password is required to change an
account number or service address. No password is required
to initiate payment or usage transactions which can
materially affect a consumer's account. This represents a
weakness in controls to prevent or detect an attempt to
enter unauthorized transactions.
Recommendation; Implement a transaction level password (as
currently implemented for account number/service address
changes) to prevent unauthorized payment and usage
transactions. Alternatively, a system level password could
be used (i.e., an overall password required to gain access
to any part of the water/utility billing system).
7. Water/Utility Billing System Documentation
Observation; There is no user documentation for the
water/utility billing system. This system was developed
and installed by Datastream approximately one year ago. As
part of the contract, Datastream was to provide user
documentation. To date, this requirement of the contract
has not been fulfilled. Good user documentation is
essential in training new personnel and would reduce the
dependence of the City on the memory of key personnel for
the performance of daily processing operations.
Recommendation: Obtain from Datastream a user manual for
the water/utility billing system, or, if necessary, develop
such a manual.
8. Disaster Recovery Plan
Observation: No plan has been documented for processing
critical work in the event of a major hardware or software
failure or temporary or permanent destruction of
facilities. A well-established disaster recovery plan
enables essential DP services to be resumed in a timely
manner in the event of a disaster. It allows management to
determine contingencies in a planning mode rather than
during the disaster itself.
Recommendation; Develop and document a disaster recovery
plan that includes essential elements:
Location of all back-up data.
Location of similar hardware configurations for
stand-by processing.
Classification of jobs into critical and
non-critical.
Processing instructions and minimum hardware
configurations for critical jobs.
Off-hours contact phone numbers for DP
personnel and user management.
Timescale of contingencies (i.e., after what
period of curtailment of services should user
management be alerted, stand-by sites
contacted, etc.).
Copies of the plan should be stored off-site.
9. Data Processing Policies and Standards
Observation; There are no documented data processing
policies and standards although a number of data processing
policies and standards exist. Well-documented policies and
standards are an essential tool for control and consistency
in a data processing environment.
Recommendation: Develop and implement policies and
standards for data processing that include the following
areas:
Long range planning.
Acquisition of hardware and software, including
personal computers.
Design, development and modification of software.
Documentation standards.
Technological standards.
Use of utility programs and development tools.
(Refer also to recommendations entitled,
"Development Tools and Compilers".).
Post-implementation evaluations.
System feasibility studies.
Testing procedures.
Operating procedures.
APPENDIX
MANAGEMENT'S RESPONSIBILITY FOR,
AND THE OBJECTIVES AND LIMITATIONS OF,
INTERNAL ACCOUNTING CONTROL AND THE
DEFINITION OF A MATERIAL WEAKNESS
The following comments concerning management's responsibility
for internal accounting control, the objectives of and the
inherent limitations in a system of internal accounting
control, and the definition of a material weakness are excerpts
from Statements on Auditing Standards of the American Institute
of Certified Public Accountants.
Management's Responsibility
Management is responsible for establishing and maintaining a
system of internal accounting control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
control procedures.
Objectives
The objectives of a system are to provide management with
reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition,
and that transactions are executed in accordance with
management's authorization and recorded properly to permit the
preparation of financial statements in accordance with
generally accepted accounting principles.
Limitations
Because of inherent limitations in any system of internal
accounting control, errors or irregularities nevertheless may
occur and not be detected. Also, projection of any evaluation
of the system to future periods is subject to the risk that
procedures may become inadequate because of changes in
conditions or that the degree of compliance with the procedures
may deteriorate.
Material Weaknesses
A material weakness (for the auditor's purpose) is a condition
in which the specific control procedures, or the degree of
compliance with them, do not (in the auditor's judgement)
reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation to
the financial statements being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. These criteria
may be broader than those that may be appropriate for
evaluating weaknesses in accounting control for management or
other purposes.
DeloitteHaskins Sells
Suite 1900
701 "B" Street
San Diego, California 92101-8198
(619) 232-6500
TWX 910-335-1573
ACCOUNTANTS' REPORT ON COMPLIANCE WITH
AUDIT GUIDELINES FOR REVENUE SHARING AND
ANTIRECESSION FISCAL ASSISTANCE FUND RECIPIENTS
To the Honorable City Council
City of Carlsbad, California
We have examined the financial statements of the various fund
types and account groups of the City of Carlsbad for the year
ended June 30, 1984, and have issued our report thereon dated
October 4, 1984. 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 connection with our examination, we also (1) performed tests
of compliance with the Revenue Sharing and Antirecession Fiscal
Assistance Acts and regulations as required by Sections II.C.3
and III.C.3 of the Audit Guide and Standards for Revenue
Sharing and Antirecession Fiscal Assistance Fund Recipients
(Guide) issued by the Office of Revenue Sharing,U.S.
Department of the Treasury, and (2) compared the data on Bureau
of Census Form RS-8 with the audited records of the City of
Carlsbad as required by Section II.C.4 of the "Guide" for the
year ended June 30, 1983. The financial statements of the City
of Carlsbad for the year ended June 30, 1983 were examined by
other auditors whose report, dated November 23, 1983, expressed
an unqualified opinion on those statements. Our findings are
set forth below:
1. Publication of notice of the Use Report's availability in a
newspaper of general circulation or by alternative means
within 10 days of its filing was not made as required by
Section 51.12(c).
2. Publication of notice of the proposed use hearing on
possible use of entitlement funds in a newspaper of general
circulation did not include the amount of unappropriated
entitlement funds in the recipient's Revenue Snaring Trust
Fund and the amount it expected to receive during its
fiscal year as required by Section 51.13(b)(2).
3. Publication of notice of revenue sharing budget hearing in
a newspaper of general circulation or by alternative means
within 10 days of date of hearing was not made as required
by Section 51.14(c).
4. Publication of notice stating that a summary of the enacted
budget showing intended uses of entitlement funds was
available for public inspection in a newspaper of general
circulation or by alternative means within 30 days of
enactment of budget was not made as required by
Section 51.14(g).
Based on these procedures, we noted no other instances of
noncompliance with the regulations for the year ended June 30,
1984 and no material differences between data on Bureau of
Census Form RS-8 and the records of the City of Carlsbad for
the year ended June 30, 1983.
October 4, 1984
Deloitte
Haskins Sells
c
CITY OF CARLSBAD
WATER UTILITY FUND
Financial Statements For The
Years Ended June 30, 1984 And 1983
And Auditors' Opinion
Deloitte
Haskins Sells
Suite 1900
701 "B" Street
San Diego, California 92101-8198
(619) 232-6500
TWX 910-335-1573
AUDITORS' OPINION
The Honorable Mayor and City Council
City of Carlsbad, California
We have examined the balance sheet of the Water Utility Fund of
the City of Carlsbad, California, as of June 30, 1984 and the
related statement of operations and retained earnings and of
changes in financial position for the year then ended. 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. The financial
statements of the Water Utility Fund of the City of Carlsbad,
California for the year ended June 30, 1983 were examined by
other auditors whose report, dated November 23, 1983, expressed
an unqualified opinion on those statements.
In our opinion, the above-mentioned financial statements for
fiscal 1984 present fairly the financial position of the Water
Utility Fund of the City of Carlsbad, California at
June 30, 1984 and the results of its operations and the changes
in its financial position for the year then ended, in
conformity with generally accepted accounting principles
applied on a basis consistent with that of the preceding year.
October 4, 1984
CITY OF CARLSBAD
WATER UTILITY FUND
BALANCE SHEETS. JUNE 30. 1984 AND 1983
ASSETS
CURRENT ASSETS:
Cash and investments
Receivables, net of allowance for
doubtful accounts of $37,164 in 1984
Accrued interest
Inventory, at cost
Prepaid expenses
Total current assets
RESTRICTED ASSETS:
Cash and investments
Accrued interest
Total restricted assets
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
1984 1983
$ 2,481,025 $ 2,374,140
858,229
97,671
4,552
3,441,477
618,525
618,525
231,956
37,964
1,289,853
4,022,304
147,349
364,969
184,476
5,759
72,195
6,356,825
(1,976,114)
411,093
18,873
112,402
4.590
2,921.098
556,351
10,703
567,054
231,956
37,964
1,289,853
4,022,304
147,349
364,969
266,794
5,759
72.195
6,439,143
(1,917.338)
4,380,711 4,521,805
$ 8.440.713 $ 8.009.957
LIABILITIES NOTES
CURRENT LIABILITIES (payable from
current assets):
Accounts payable
Accrued salaries
Deposits payable
Total current liabilities (payable
from current assets)
CURRENT LIABILITIES (payable from
restricted assets):
Current portion of revenue bonds payable
Accrued interest
Total current liabilities (payable from
restricted assets)
LONG-TERM LIABILITIES: 2
Revenue bonds payable (net of
unamortized discount and
current portion)
Total liabilities
CONTINGENCIES 3
FUND EQUITY:
Contributed capital
Retained earnings:
Reserved for construction
Reserved for debt service
Designated for continuing
appropriations
Unreserved, undesignated
Total retained earnings
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
1984 1983
$ 463,786 $ 138,345
7,334
88,512 78,719
559.632
125,000
28,438
153,438
894.596
615,540
887,441
66,253
2.840.733
4.409.967
6.833.047
58.440.713
217.064
125,000
125,000
893.362
1,607,666 1,235.426
2,423,080 2,423,080
567,055
887,441
73,000
2,823,955
4,351.451
6,774.531
>8.009.957
See accompanying notes to financial statements
CITY OF CARLSBAD
WATER UTILITY FUND
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
FOR THE YEARS ENDED JUNE 30, 1984 AND 1983
1984 1983
OPERATING REVENUES:
Metered water sales
Other charges for services
Total operating revenue
OPERATING EXPENSES:
Personnel services
Office expenses
Repairs and maintenance
Professional services
Transportation
Insurance
Purchased water
Loss on disposal of property
Bad debt expense
Depreciation and amortization
Total operating expense
OPERATING LOSS
NON-OPERATING REVENUES (EXPENSES):
Interest income
Interest expense and fiscal agent fees
Non-operating revenues - net
NET INCOME (LOSS)
RETAINED EARNINGS, BEGINNING OF YEAR'
RETAINED EARNINGS, END OF YEAR
$1,309,379 $1,606,202
104,953 61,299
1,414,332
439,508
48,716
230,986
38,164
13,099
577,081
16,092
56,021
137,506
1,557,173
142,841
258,232
(56,875)
201,357
1,667,501
507,604
17,402
177,489
104,245
639
72,322
926,347
139,633
1,945,681
278,180
266,914
(64,492)
202,422
58,516 (75,758)
4.351.451 4,427,209
$4.409.967 $4.351.451
See accompanying notes to financial statements.
CITY OF CARLSBAD
WATER UTILITY FUND
STATEMENTS OF CHANGES IN FINANCIAL POSITION
FOR THE YEARS ENDED JUNE 30, 1984 AND 1983
1984 1983
SOURCES OF WORKING CAPITAL (UNRESTRICTED):
Operations:
Net income (loss) $ 58,516 $(75,758)
Items not requiring working capital:
Depreciation and amortization 137,506 139,633
Loss on disposal of property 16,092
Working capital provided by operations 212,114 63,875
Net decrease in restricted assets 809,244
Contributions from other funds 174,115
Total sources of working capital 212,114 237,990
USES OF WORKING CAPITAL:
Acquisition of property, plant and equipment 11,270 199,351
Decrease in long-term revenue bonds payable 115,000
Net increase in restricted assets and
related liabilities 23,033
Total uses of working capital 34,303 314,351
NET INCREASE IN WORKING CAPITAL (UNRESTRICTED) $ 177.811 $732.883
NET INCREASE (DECREASE) IN ELEMENTS OF
WORKING CAPITAL (UNRESTRICTED):
Cash and investments
Accounts receivable
Accrued interest receivable
Inventory
Prepaid expenses
Accounts payable
Accrued salaries
Deposits payable
NET INCREASE IN WORKING CAPITAL
$ 106,885 $773,591
447,136
(18,873)
(14,731)
(38)
(325,441)
(7,334)
(9,793)
(10,477)
5,141
6,970
(727)
(41,852)
9,182
(8,945)
$ 177.811 $ 732.883
See accompanying notes to financial statements.
CITY OF CARLSBAD
WATER UTILITY FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1984 AND 1983
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 ana 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. The intent
of the City Council is that the costs (expenses, including
depreciation) of providing gooas and services to the general
public on a continuing basis be financed or recovered primarily
through user charges.
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:
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.
Basis of Accounting
The Water Utility Fund is accounted for using the accrual basis
of accounting. Accordingly, revenues are recognized when they
are earned and expenses are recognized when the related liability
is incurred.
Investments
Investments are stated at cost, which approximates market.
Inventories
Inventories consist of materials and supplies which are valued at
cost.
Property, Plant and Equipment
Property, plant and equipment are stated at cost, or if donated,
at estimated fair market value at the date of contribution.
Depreciation is provided over the estimated useful lives of the
assets using the straight-line method.
LONG-TERM LIABILITIES
Revenue Bonds Payable at June 30, 1984 and 1983 were as follows:
1984 1983
1958 Waterworks Revenue Bonds,
principal due in amounts ranging
from $40,000 to $47,000 on July 1
of each year through 1988 (interest
is payable on January 1 and July 1
of each year at varying rates from
4.25% to 4.10%)$ 217,000 $ 217,000
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 4.255 to 3.875%) 185,000
1970 Waterworks Revenue Bonds, principal
due in amounts ranging from $75,000 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
6.0% to 6.9%) 625,000
185,000
Total revenue bonds payable
Less unamortized discount
Less current portion
Total
1,027,000
(7,404)
1,019,596
(125,000)
625,000
1,027,000
(8.638)
1,018,362
(125,000)
$ 894.596 $ 893.362
At June 30, 1984, aggregate maturities of Revenue Bonds Payable
were as follows:
Year Ending
June 30
1985 $ 125,000
1986 130,000
1987 140,000
1988 150,000
1989 157,000
Thereafter 325,000
Total $1.027.000
The Waterworks Revenue Bonds require, among other covenants, that
net revenues exceed annual principal and interest payments by a
factor of 1.35. At June 30, 1984, the City was not in compliance
with this requirement as shown below:
Gross revenues $1,672,546
Operating expenses 1,557,173
Net revenues 115,373
Less amounts required for
payment of principal and
interest for the year
ended June 30, 1984 $181,875
1.35 245,531
Net deficiency $ 130.158
At June 30, 1984, the City was in compliance with all other debt
covenants required by the Waterworks Revenue Bonds.
3. CONTINGENCIES
The Water Utility Fund of the City and Costa Real Municipal Water
District (the "District") are currently providing water services
to most of the City under the terms of a basis of understanding
negotiated in an effort to settle a law suit between the
parties. Such understanding provides for a functional allocation
of responsibilities between the Water Utility Fund and the
District with several significant issues to be resolved by joint
committee of the parties before a final comprehensive agreement
is reached. As a result of a final agreement, additional assets
and/or liabilities may be transferred among the parties.
PARKING AUTHORITY OF THE CITY OF CARLSBAD
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1984
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
PARKING AUTHORITY OF THE CITY OF CARLSBAD
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1984
PARKING AUTHORITY OF THE CITY OF CARLSBAD
Table of Contents
June 30, 1984
Page
Number
Accountants' Report 1
Combined Balance Sheet - All Governmental Fund Types
and Account Group 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. DIEHL. C.P.A. (1925-1956)
BRYN B. EVANS, C.P.A.
PHILIP H. HOLTKAMP, C.P.A.
THOMAS M. PERLOWSKI, C.P.A.
WIN G. PETERS. C.P.A.
DONALD H. PETERSON, C.P.A.
DONALD E. CALLAHAN, C.P.A.
L. PETER SCHERER, C.P.A.
RODNEY K. McDANIEL, C.P.A.
RALPH H. WEINTRAUB, C.P.A.
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
1 2O WEST WOODWARD AVENUE
ESCONDIDO, CALIFORNIA 92O25-999O
(6 I 9) 741-3141
August 17, 1984
OTHER OFF ICES ATT
2965 ROOSEVELT STREET
CARLSBAD, CALIFORNIA 92OO8-23B9
(619) 729-23.13
I9IO NORTH BUSH STREET
SANTA ANA, CALIFORNIA 92706-2894
(714) 512-4453
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,
1984, 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 Parking Authority of the City
of Carlsbad and the results of its operations and changes in fund balance
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 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 GROUP
June 30, 1984
ASSETS:
Cash and savings held by
trustee
U.S. Government securities,
at cost
Accrued interest receivable
Due from other funds
Lease payments receivable
(Note Ib)
Unearned lease finance
charges (Note lb)
TOTAL ASSETS
Governmental Fund Types
Bond
Service
Working
Capital Reserve
Account
Group
Lease
Payments
Receivable
And Bonds
Payable
Totals
(Memorandum
Only)
$ 54,468 $ 3,000 $ 29,982
970,913
28,615
61,308
$ 87,450
250,938
4,388
$ 4,271,756
(1,726,756)
1,221,851
33,003
61,308
4,271,756
(1,726,756)
$ 2.545,000 $ 3.948,612
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
$ 222,631
892,673
1,115,304
$ 3,000
$ 2,545,000 $ 2,545,000
$ 61,308 61,308
61,308 2,545,000 2,606,308
224,000
3,000 224,000
446,631
3,000
892,673
1,342,304
$ 1,115,304 $ 3.000 $ 285,308 $ 2.545.000 $ 3,948.612
See accompanying accountants' report and notes to financial statements.
2
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, 1984
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 payments received - principal
Bonds paid
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUE
AND OTHER FINANCING SOURCES
OVER EXPENDITURES AND OTHER
FINANCING USES
FUND BALANCE, July 1, 1983
FUND BALANCE, June 30, 1984
Bond
Service
190,025
93,635
283,660
190,025
190,025
93,635
159,448
955,856
Working
Capital Reserve
$ 26,988
26,988
$ 3,550
3,550
(3,550) 26,988
3,000 224,000
Totals
(Memorandum
Only)
$ 190,025
120,623
310,648
190,025
3,550
193,575
117,073
122,375
(80,000)
26,988 3,550
(3,550) (26,988)
65,813 3,550 (26,988)
122,375
(80,000)
30,538
(30,538)
42,375
$ 1,115.304 3,000 $ 224.000
159,448
1,182,856
$ 1.342,304
See accompanying accountants' report and notes to financial statements.
3
PARKING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
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, 1984:
Parking Revenue Bonds
1969 1981 Total
Revenue bonds payable,
June 30, 1983 $ 1,125,000 $ 1,500,000 $ 2,625,000
Bonds retired 50,000 30,000 80,000
Revenue bonds payable,
June 30, 1984 $ 1,075,000 $ 1,470,000 $ 2,545,000
See accompanying accountants' report.
4
*
PARKING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1984
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 1984-85.
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 with $ 40,000 maturing in 1984-85.
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 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, 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
may be used to reimburse the City for rental payments previously paid.
See accompanying accountants' report.
PARKING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1984
4. DESCRIPTION OF FUNDS (Continued):
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.
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
$ 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
$ 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.
See accompanying accountants' report.
PARKING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1984
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
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 $ 156,000 shall be transferred to the Bond Service Fund.
5. TOTAL COLUMNS:
Total columns on the Combined Statements are captioned Memorandum Only
to indicate that they are presented only to facilitate financial analy-
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.
7
SUPPLEMENTARY INFORMATION
PARKING AUTHORITY OF THE CITY OF CARLSBAD
COMBINING BALANCE SHEET
ALL GOVERNMENTAL FUND TYPES
June 30, 1984
BOND SERVICE FUND WORKING CAPITAL FUND RESERVE FUND
ASSETS:
Cash and investments held by trustee
U.S. Government securities, at cost
Accrued interest receivable
Due from other funds
TOTAL ASSETS
PARKING REVENUE BONDS
1969 1981 Totals
$ 9,492
860,916
23,956
36,910
$ 44,976
109,997
4,659
24,398
$ 54,468
970,913
28,615
61,308
PARKING REVENUE BONDS
1969 1981 Totals
$ 1,500 $ 1,500 $ 3,000
PARKING REVENUE BONDS
1969 1981 Totals
$ 184.030 $ 1.115.304
$ 2,326
100,000
2,584
$ 104.910
$ 27,656
150,938
1,804
$ 29,982
250,938
4,388
$ 285.308
LIABILITIES:
Due to other funds
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
$ 222,631 $ 222,631
708,643 $ 184,030 892,673
931,274 184,030 1,115,304
$ 931.274 $ 184.030 $ 1.115.304
$ 1,500 $ 1,500 $ 3,000
1,500 1,500 3,000
$ 36,910 $ 24,398 $ 61,308
68,000
68,000
156,000
156,000
224,000
224,000
$ 104.910 $ 180.398 $ 285.308
See accompanying accountants' report and notes to financial statements.
8
PARKING AUTHORITY OF THE CITY OF CARLSBAD
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
For the fiscal year ended June 30, 1984
BOND SERVICE FUND
PARKING REVENUE BONDS
1969 1981 Totals
WORKING CAPITAL FUND
PARKING REVENUE BONOS
1969 1981 Totals
RESERVE FUND
PARKING REVENUE BONDS
1969 1981 Totals
REVENUE:
Lease payments - finance charges
Interest income
TOTAL REVENUE
EXPENDITURES:
Interest
Administrative expense
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Lease payments received - principal
Bonds paid
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES
AND OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING
USES
FUND BALANCE, July 1, 1983
FUND BALANCE, June 30, 1984
$ 70,025 $ 120,000 $ 190,025
79,832 13,803 93,635
149,857
70,025
70,025
79,832
106,651
824,623
133,803
120,000
120,000
13,803
52,797
131,233
283,660
190,025
190,025
93,635
159,448
955,856
$ 963 $ 2.587 $ 3,550
963 2,587 3,550
(963)
68,375
(50,000)
9,407
(963)
26,819
54,000
(30,000)
17,581
(2,587)
38,994
122,375
(80,000)
26,988
(3,550)
65,813
963
963
1,500
(2,587) (3,550)
2,587
2,587
1,500
3,550
3,550
3,000
$ 9,407 $ 17,581 $ 26,988
9,407 17,581 26,988
9,407
(9,407)
(9,407)
68,000
17,581
(17,58i;
156,000
26,988
(26,988)
(17,581) (26,988)
224,000
$ 931.274 $ 184,030 $ 1.115.304 $ 156.000 $ 224.000
See accompanying accountants' report and notes to financial statements.
9
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1984
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1984
^^^^^B
o
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Table of Contents
June 30, 1984
Page
Number
Accountants' Report
Combined Balance Sheet - All Governmental Fund Types
and Account Group
Combined Statement of Revenues, Expenditures and Changes
in Fund Balance - All Governmental Fund Types
Statement of Changes in Bonds Payable
Notes to Financial Statements
Combining Balance Sheet - All Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance - All Debt Service Funds
3
4
5-7
8
9
ELLIS C. DIEHL. C.P.A. (1925-1956)
BRYN B. EVANS. C.P.A.
PHILIP H. HOLTKAMP. C.P.A.
THOMAS M. PERLOWSKI. C.P.A.
WIN G. PETERS, C.P.A.
DONALD H. PETERSON, C.P.A.
DONALD E. CALLAHAN. C.P.A.
L. PETER SCHERER. C.P.A.
RODNEY K. McOANIEL. C.P.A.
RALPH H. WEINTRAUB, C.P.A.
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
IBO WEST WOODWARD AVENUE
ESCONDIDO, CALIFORNIA 92O2S-999O
(6191 741-3141
August 17, 1984
2985 ROOSEVELT STREET
CARLSBAD, CALIFORNIA 92006-3369
(619) 729-2343
I9IO NORTH BUSH STREET
SANTA ANA. CALIFORNIA 92706-2894
1714) 542-4453
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,
1984, 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 at June 30, 1984 and the results of its operations and changes
in fund balance 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.
o BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINED BALANCE SHEET
ALL GOVERNMENTAL FUND TYPES AND ACCOUNT GROUP
June 30, 1984
ASSETS:
Cash and savings held by
trustee
U.S. Government securities, at
cost, (approximates market)
Due from other funds
Lease payments receivable
(Note Ib)
Unearned lease finance charges
TOTAL ASSETS
Governmental Fund Types
Working Debt
Revenue Capital Service
$ 8,535 $ 626 $ 22,942
42,693
2,324 874 31,907
Account Group
Lease
Payments
Receivable
And Bonds
Payable
$ 309,900
(69,900)
Totals
(Memorandum Only)
19841983
$ 32,103 $ 26,958
42,693
35,105
309,900
(69,900)
76,547
2,636
344,900
(84,900)
$ 349,901 $ 366.141
TOTAL LIABILITIES
LIABILITIES AND FUND BALANCE
LIABILITIES:
Revenue bonds payable (Note 3)
Due to other funds $ 32,781
Deferred revenue
32,781
$ 2,324
$ 240,000
2,324 240,000
$ 240,000 $ 260,000
35,105 2,636
36,000
275,105 298,636
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
$ 1,500
20,771
52,525
20,771 1,500 52,525
53,552 $ 1.500 $ 54,849 $ 240,000
52,525
1,500
20,771
74,796
53,725
1,500
12,280
67,505
o
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 BALANCE - ALL GOVERNMENTAL FUND TYPES
For the fiscal year ended June 30, 1984
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 payments 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, July 1, 1983
FUND BALANCE, June 30, 1984
Revenue
$ 15,000
4,267
19,267
19,267
Working
Capital
Debt
Service
Totals
(Memorandum Only)
1984 1983
$ 57
57
941
941
(884)
$ 2,908
2,908
15,000
15,000
(12,092)
$ 15,000 $ 16,200
7,232 7,748
22,232 23.948
15,000 16,200
941 903
15,941 17,103
6,291 . 6,845
21,000
1,119
(32,781)
(10,662)
(20,000)
874 31,907
(1,119)
874 10,788
21,000
(20,000)
33,900
(33,900)
1,000
19,800
(20,000)
36,545
(36,545)
(200)
8,605
12,166
(10)
1,510
(1,304)
53,829
7,291
67,505
6,645
60,860
See accompanying accountants' report and notes to financial statements.
3
o BUILDING AUTHORITY OF THE CITY OF CARLSBAD
STATEMENT OF CHANGES IN BONDS PAYABLE
For the fiscal year ended June 30, 1984
BALANCE AT JULY 1, 1983 $ 260,000
Payments made 20,000
BALANCE AT JUNE 30, 1984 $ 240,000
•o
See accompanying accountants' report and notes to financial statements.
4
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
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 has 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, 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 taxes, assessments,
insurance premiums and administrative costs of the Authority.
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 1984-85.
See accompanying accountants' report.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1984
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 100.75%
to 104% of the principal amount of the bonds.
4. FUND BALANCES:
In accordance with the terms of the indenture, cash balances of the
following 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, 1984 includes:
Type of Coverage
All risk including valuable
papers and rental
Equipment floater
Excess liability
Excess workers compensation
Earthquake
Boiler and machinery
Comprehensive crime
General and auto liability
Amount
$ 11,946,515
543,730
19,000,000
10,000,000
300,000
1,000,000
500,000
1,000,000
Term
12/01/83
12/01/83
3/16/84
7/01/83
1/18/84
12/20/83
4/16/84
3/16/84
to 10/01/84
to 10/01/84
to 10/01/84
to 7/01/84
to 10/01/84
to 12/20/84
to 4/16/85
to 3/16/85
See accompanying accountants' report.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1984
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 operat-
ions, 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 aggregation of this data.•o
o
See accompanying accountants' report.
SUPPLEMENTARY INFORMATION
•o
o
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINING BALANCE SHEET
ALL DEBT SERVICE FUNDS
June 30, 1984
ASSETS:
Cash and savings held by trustee
U.S. Government securities,
at cost
Due from Revenue Fund
TOTAL ASSETS
Totals
Interest Retirement Reserve 1984
12,827 19,080 31,907
1983
$ 973 $ 920 $ 21,049 $ 22,942 $ 22,975
33,490
20.000 $ 21.049 $ 54.849 $ 56.465
LIABILITIES:
Due to Revenue Fund $ 2,324 $ 2,324 $ 2,636
FUND BALANCE (Note 4):
Reserved for payment of bond
principal and interest
Unreserved
TOTAL FUND BALANCE
TOTAL LIABILITIES AND
FUND BALANCE
$ 13,800 $ 20,000 18,725 52,525 53,725
104
13,800 20,000 18,725 52,525 53,829
13.800 $ 20.000 $ 21.049 $ 54.849 $ 56.465
See accompanying accountants' report and notes to financial statements.
8
,^*^ ,_ , iS febSK. 7-A
o
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL DEBT SERVICE FUNDS
For the fiscal year ended June 30, 1984
REVENUE:
Interest on investments
Interest Retirement Reserve
Totals
1984 1983
$ 879 $ 910 $ 1,119 $ 2,908 $ 3,696
EXPENDITURES:
Interest 15,000
EXCESS (DEFICIENCY) OF
REVENUE OVER EXPENDITURES (14,121)
OTHER FINANCING SOURCES (USES):
Bonds paid
Operating transfers in 12,827
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES) 12,827
EXCESS (DEFICIENCY) OF REVENUE
AND OTHER SOURCES OVER EXPEN-
DITURES AND OTHER USES (1,294)
15,000 16,200
FUND BALANCE, July 1, 1983
FUND BALANCE, June 30, 1984
15,094
910
(20,000)
19,080
(920)
(10)
20,010
$ 20.000
1,119 (12,092)
(20,000)
31,907
(1,119) (1,119)
(1,119) 10,788
(1,304)
18,725 53,829
$ 18.725 $ 52.525
(12,504)
(20,000)
33,550
(2,142)
11,408
(1,096)
54,925
$ 53.829
See accompanying accountants' report and notes to financial statements.
9
CITY OF CARLSBAD
REPORT OF EXAMINATION OF THE
LOCAL TRANSPORTATION FUND
FOR THE FISCAL YEARS ENDED
JUNE 30, 1984 AND 1983
A
RECEIVEDwttn*
FINANCE
KENNETH CORY
STATE CONTROLLER
DIVISION OF LOCAL GOVERNMENT FISCAL AFFAIRS
BUREAU OF STREETS AND ROADS
CITY OF CARLSBAD
TABLE OF CONTENTS
JUNE 30, 1984
Auditor's Report .................................................... 1
Balance Sheets ...................................................... 3
Statements of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual ................................. 4
Supplemental Schedule - Schedule of Transportation
Development Act Allocations for Specific Projects ................. 5
Notes to Financial Statements 6
KENNETH CORY
(fcmtralbr of tte J&ate of (Ealttetia
SACRAMENTO, CALIFORNIA 9S8O5
September 20, 1984
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, 1984 and June 30, 1983, 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, 1984 and June 30, 1983 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 examinations were also made for the purpose 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- September 20, 1984
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
Greg Brummels, Chief
Bureau of Streets and Roads
(916) 445-5153
GB/mi
Attachments
4676F
cc: City of Carlsbad
Secretary of Business and Transportation
O
CITY OF CARLSBAD
LOCAL TRANSPORTATION FUND
BALANCE SHEETS
Pertaining to Section 99234(a) of the Public Utilities Code
June 30, 1984 and June 30, 1983
Assets
Cash
Investments
Accrued Interest Receivable
Total Assets
Liabilities and Fund Balance
Liabilities
Fund Balance (Note 2)
1984
$111,591
-0-
-0-
$111,591
$ -0-
111,591
1983
$ 705
103,000
380
$104,085
$ -0-
104,085
Total Liabilities and
Fund Balance $111,591
See notes to financial statements.
-3-
CITY OF CARLSBAD
LOCAL TRANSPORTATION FUND
STATEMENTS OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Pertaining to Section 99234(a) of the Public Utilities Code
Fiscal Year Ended June 30, 1984
With Comparative Actual Amounts for Year Ended June 30, 1983
Budget
1984
variance
Favorable 1983
Actual (Unfavorable) Actual
Revenues:
Intergovernmental:
Allocations:X
Miscellaneous:
Interest
Total
$ _o- $ -0- $ -0- $ -0-
-0-
-0-
9.060 9,060 8.742
9.060 9,060 8,742
Expenditures:
Construction -0-1.554 (1.554) -0-
Total
Excess (Deficiency)
of Revenues Over
Expenditures
Fund Balance at Beginning
of Year
-0-
-0-
104.085
1,554 (1,554) -0-
7,506
104,085
7,506 8,742
-0- 95.343
Fund Balance at End of Year $104.085 $111.591 $7.506 $104.085
See notes to financial statements.
-4-
CITY OF CARLSBAD
TRANSPORTATION DEVELOPMENT ACT FUNDS
SCHEDULE OF TRANSPORTATION DEVELOPMENT ACT
ALLOCATION FOR SPECIFIC PROJECT^
PERTAINING TO SECTION 99234 OF THE PUBLHTUTILITIES CODE
AS OF JUNE 30, 1984
Year
77/80
79/80
81/82
81/82
83/84
83/84
No. Project Description
120 Carlsbad Boulevard Bike Path
131 La Costa Avenue Bike Path
148 Chestnut Avenue Bike Lane
148 Harding Street Bike Lane
169 Alga Road Bike Lane
169 Jefferson Street Bike Path
Amount Requested by San DAG
(See Note 2)
Totals
Allocation
$190,492
4,000
11,772
840
10,500
95,000
-0-
$312,604
Payments
$190,492
4,000
11,772
840
-0-
-0-
-0-
$207,104
Amounts
Reallocated
$(84,555)
-0-
(11,772)
-0-
-0-
95,000
1,327
-0-
Interest
$49,180
-0-
-0-
-0-
-0-
-0-
-0-
$49,180
InterestReallocated
$(16,818)
-0-
-0-
-0-
-0-
16,818
-0-
$ -0-
Total
Available
$138,299
4,000
-0-
840
-0-
111,818
1,327
$256,284
Expenditure
$138,299
4,000
-0-
840
-0-
1,554
-0-
$144,693
Unexpended
Balance
$ -0-
-0-
-0-
-0-
-0-
110,264
1,327
$111,591
Project Status
Project Discontinued
Project Completed
Project Completed
Project Completed
Claim to be filed in
F/Y 84/85
Project to be
continued in
F/Y 84/85
-5-
CITY OF CARLSBAD
LOCAL TRANSPORTATION FUND
NOTES TO THE FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1984
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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:
Interest was pro-rated to the Local Transportation Fund in direct ratio
to its relation to all available monies computed on a monthly average
basis.
NOTE 2 - SUBSEQUENT EVENT
The San Diego County Auditor has been instructed to request that the City
return $1,327 to the bicycle reserve fund. The $1,327 is part of the
$12,612 given to the City pursuant to claim #148.
4676F
O -6-
KENNETH CORY
of ih* jifctie of (Ealtfantia
SACRAMENTO. CALIFORNIA 958O5
September 20, 1984
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, 1984 and
have issued our report thereon dated September 20, 1984. 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- September 20, 1984
Our study and evaluation of the City of Carlsbad's system of internal
accounting control for the year ended June 30, 1984, 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 examinations of the financial statements referred to above were 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 li-""
Greg' Brummels, Chief
Bureau of Streets and Roads
(916) 445-5153
GB/mi
Attachments
4676F
0
o
CITY OF CARLSBAD
REPORT OF EXAMINATION OF THE
SPECIAL GAS TAX STREET IMPROVEMENT FUNDS
FOR THE FISCAL YEARS ENDED
JUNE 30, 1984 AND JUNE 30, 1983
D KENNETH CORY
STATE CONTROLLER
DIVISION OF LOCAL GOVERNMENT FISCAL AFFAIRS
BUREAU OF STREETS AND ROADS
Audit Manager Al Porras
Audit Supervisor .... Jim L. Spano
(916) 575-7070
Auditor Art Luna
CITY OF CARLSBAD
SPECIAL GAS TAX STREET IMPROVEMENT FUNDS
TABLE OF CONTENTS
JUNE 30, 1984
Auditor's Report 1
Comparative Balance Sheet ........................................... 2
Statement of Revenues, Expenditures, and
Changes In Fund Balance - Budget and Actual 3
Supplemental Statement of Changes in Fund Balance 4
Notes to Financial Statements 5
Report of Compliance - Section 2153 Streets and Highways Code 6
KENNETH CORY
of tfys jiiaie of Caltforwta
SACRAMENTO, CALIFORNIA 958O5
September 20, 1984
Mr. Jim Elliott
Finance Director
1200 Elm Avenue
City of Carlsbad
Carlsbad, CA 92008
Dear Mr. Elliott:
We have examined the balance sheet of the special gas tax street improvement
funds of the City of Carlsbad as of June 30, 1984 and June 30, 1983, and the
related statement of revenues and expenditures and changes in fund balance,
and supplemental statements 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 special gas tax street improvement funds of the City
of Carlsbad at June 30, 1984 and June 30, 1983, and the results of operation
of such funds for the years then ended, in conformity with generally accepted
accounting principles applied on a consistent basis.
Our examination was also made for the purpose of determining compliance with
Section 2153 of the Streets and Highways Code.
In our opinion, the funds described above were expended in conformance with
the applicable laws, rules, and regulations of the California Constitution and
the Streets and Highways Code.
Cordially,
KENNETH CORY, STATE CONTROLLER
Earl L. Lucas
Assistant Deputy State Controller
Local Government
By
GB/mb
Attachments
5367F
Gr^g Brummels, Chief
Bureau of Streets and Roads
(916) 445-5153
CITY OF CARLSBAD
SPECIAL GAS TAX STREET IMPROVEMENT FUNDS
Modified Accrual - COMPARATIVE BALANCE SHEET
JUne 30, 1984 and June 30, 1983
1984 1983
Assets
Cash $1,492,779 $1,267,679
Interest Receivable -0- 19.315
Total Assets $1.492.779 $1.286.994
Liabilities and Fund Balance
Liabilities: -0- -0-
Total Liabilities -0- -0-
Fund Balance
Undesignated 1.492.779 1.286.994
Total Fund Balance 1.492.779 1.286.994
Total Liabilities and
Fund Balance $1.492.779 $1.286,994
See notes to financial statements.
-2-
CITY OF CARLSBAD
SPECIAL GAS TAX STREET IMPROVEMENT FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended June 30, 1984
With Comparative Actual Amounts for Year Ended June 30, 1983
1984
Budget
Variance
Favorable 1983
Actual (Unfavorable) Actual
Revenues: - Intergovernmental;
Apportionments:
Section 2106 S.H. Code
Section 2107 S.H. Code
Section 2107.5 S.H. Code
Miscellaneous:
Interest
Intergovernmental Revenue
Total Revenues
$ 152,690 $ 171,216 $ 18,526 $ 144,393
324,854 380,887 56,033 250,635
6,000 6,000 -0- 6,000
60,000
-0-
543.544
122,704
22.044
62,704
22.044
702.851 159.307
87,064
-0-
488,092
Expenditures:
Engineering and
Administration
Construction
Maintenance
Total Expenditures
-0-
-0-
-0-
-0-
-0-
457,811
39,255
497,066
-0-
(457,811)
(39.255)
(497,066)
-0-
11,302
-0-
11.302
Excess (Deficiency) Of
Revenues Over Expenditures 543,544 205,785 (337,759) 476,790
Fund Balance at
Beginning of Year 1.286.994 1.286.994 -0-810.204
Fund Balance at End of Year $1.830.538 $1.492.779 $(337.759) $1,286.994
See notes to financial statements.
-3-
CITY OF CARSLBAD
SPECIAL GAS TAX STREET IMPROVEMENT FUNDS
SUPPLEMENTAL STATEMENT OF CHANGES IN FUND BALANCE
Year Ended June 30, 1984
Section Section Section
2106 2107 2107.5 Total
Revenues $171.216 $ 525.635 $6.000 $ 702.851
Expenditures:
Engineering and Administration -0- -0- -0- -0-
Construction 171,216 280,595 6,000 457,811
Maintenance -0- -0- -0- -0-
Capital Expenditure -0- 39.255 -0- 39,255
Total Expenditures 171.216 319.850 6.000 497,066
Excess (Deficiency) of
Revenues Over
Expenditures -0- 205,785 -0- 205,785
Fund Balance at
Beginning of Year 419.883 861.111 6.000 1.286.994
Fund Balance
at End of Year $419.883 $1.066.896 $6.000 $1.492,779
See notes to financial statements.
-4-
O
CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
1. Basis Of Accounting;
The special gas tax street improvement funds are accounted for using the
Modified Accrual basis of accounting. Revenues are recognized when
received and expenditures are recognized when liabilities are incurred.
-5-
CITY OF CARLSBAD
SPECIAL GAS TAX STREET IMPROVEMENT FUNDS
REPORT OF COMPLIANCE - SECTION 2153 STREETS AND HIGHWAYS CODE
JUne 30, 1984
In accordance with Section 2153 of the Streets and Highways Code, we have
examined the accounts of the special gas tax street improvement funds.
One street purpose project was reviewed and was determined to be incomplete.
All incomplete projects are subject to further examination.
5367F
-6-
KENNETH CORY
of tfys jitate of OHifornta
SACRAMENTO, CALIFORNIA 958O5
March 18, 1985
Mr. Jim Elliott
Finance Director
1200 Elm Avenue
City Hall
Carlsbad, CA 92008
Dear Mr. Elliott:
Enclosed is a copy of the audit report concerning our financial and compliance
examination of the special gas tax street improvement funds as of
June 30, 1984.
We wish to thank you for your courtesy and cooperation.
Cordially,
KENNETH CORY, STATE CONTROLLER
Earl L. Lucas
Assistant Deputy State Controller
Local Government
By
fbE William J. Fong
Audit Manager
Bureau of Streets and Roads
(916) 445-5153
WJF/mb
Enclosure
5367F