HomeMy WebLinkAbout; ; 1988-1989 CAFR; 1989-06-30COMPREHENSIVE
ANNUAL FINANCIAL REPORT
for the fiscal year ending JUNE 30, 1989
CITY OF CARLSBAD - CALIFORNIA
MAYOR
Claude "Bud" Lewis
MAYOR PRO TEM
Ann Kulchin
CITY COUNCIL
Eric Larson
John J. Mamaux Mark V. Pettine
CITY MANAGER
Raymond R. Patchett
FINANCE DIRECTOR
James F. Elliott
Prepared by the Finance Department
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year ended June 30, 1989
TABLE OF CONTENTS
PAGE
Introductory Section
Table of Contents i
Letter of Transmittal 1
Location Map 21
Certificate of Achievement for Excellence in
Financial Reporting Government Finance
Officers Association 22
Certificate of Award for Outstanding Financial
Reporting California Society of Municipal
Finance Officers 23
List of City Officials 24
Organization Chart 25
Financial Section
Independent Auditors' Report 27
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and
Account Groups 28
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balance - All
Governmental Fund Types 32
Combined Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
(Budgetary Basis) All Governmental Fund Types 34
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings - All Proprietary
Fund Types 38
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year ended June 30, 1989
TABLE OF CONTENTS. CONTINUED
PAGE
Combined Statement of Changes in Financial Position -
All Proprietary Fund Types 40
Notes to Combined Financial Statements 41
Supplement Section!
Governmental Funds:
General Fund:
Schedule of Revenues - Budget and Actual
(Budgetary Basis) 78
Schedule of Expenditures - Budget and Actual
(Budgetary Basis) 80
Special Revenue Funds:
Combining Balance Sheet 84
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balance 88
Combining Schedule of Revenue and Expenditures -
Budget and Actual (Budgetary Basis) 92
Debt Service Funds:
Combining Balance Sheet 102
Combining Statement of Revenue, Expenditures
and Changes in Fund Balance 104
Combining Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis) 106
ii
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year ended June 30, 1989
TABLE OF CONTENTS. CONTINUED
PAGE
Capital Project Funds:
Combining Balance Sheet 110
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance 114
Proprietary Funds:
Enterprise Funds:
Combining Balance Sheet 120
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings 122
Combining Statement of Changes in Financial Position 123
Internal Service Funds:
Combining Balance Sheet 126
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings 128
Combining Statement of Changes in Financial Position 130
Agency Funds:
Combining Statement of Changes in Assets and Liabilities 134
General Fixed Asset Account Group:
Schedule of General Fixed Assets by Function 137
Schedule of General Fixed Assets by Source 138
111
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year ended June 30, 1989
TABLE OF CONTENTS. CONTINUED
PAGE
STATISTICAL INFORMATION
(Not Covered by Independent Auditors' Report)
General Expenditures by Function, Last Ten Fiscal Years 140
General Revenues by Source, Last Ten Fiscal Years 142
Ratio of General Bonded Debt to Assessed Valuation and
Net Bonded Debt Per Capita, Last Ten Fiscal Years 144
Computation of Legal Debt Margin 145
Schedule of Direct and Overlapping Bonded Debt 146
Ratio of Annual Debt Service for General Bonded Debt to
Total Governmental Expenditures, Last Ten Fiscal Years 147
Revenue Bond Coverage - Water Bonds, Last Ten Fiscal Years 148
Demographic Statistics, Last Ten Fiscal Years 150
Schedule of Assessed Valuation, Last Ten Fiscal Years 152
Construction and Business Activity, Last Ten Fiscal Years 154
Property Tax Levies and Collections, Last Ten
Fiscal Years 155
Special Assessment Billings and Collections, College
Boulevard Assessment District, Last Three
Fiscal Years 156
PERS Historical Trend Information, Last Two Fiscal Years 157
Principal Employers, 1988-89 158
Principal Taxpayers, 1988-89 159
Miscellaneous Statistical Information 160
Annual Debt Service Requirements 161
IV
1200 ELM AVENUE • HST . • TELEPHONE
CARLSBAD, CA 92008-1989 W&*UJrm <619) 434-2867
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FINANCE DEPARTMENT
November 19, 1989
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD
Carlsbad, California
We are pleased to present the 1988-89 Annual Financial Report of the City of
Carlsbad to the City Council and the City Manager. This report includes
financial statements of the City, the Housing Authority of the City of Carlsbad,
the Parking and Building Authorities of the City of Carlsbad, the Carlsbad Public
Improvement Corporation and the Carlsbad Redevelopment Agency, as well as the
opinion of our independent certified public accountants, KPMG Peat Marwick.
Background
Carlsbad is located about 35 miles north of the City of San Diego on the Southern
California coast. The City is governed by a five member City Council under the
Council/Manager form of government. Carlsbad is a general law city incorporated
in 1952. The City covers about 40 square miles and has a population of about
62,030. Industries in the area include a major regional shopping center, 15 auto
dealers, 23 hotels offering 1,870 rooms for tourist lodging, aerospace
manufacturing, electronics, several business and light industry parks, and
numerous land developers building single and multi-family housing in a variety
of community settings.
Services Provided by the City
The City provides the full range of services normally associated with a
municipality including police, fire, parks and recreation, library, planning
and zoning, building and engineering, various maintenance services and
administration. The City also operates two Enterprise funds, one providing water
service to the residents of Carlsbad and the other providing sewer service to
all but a very small portion of the City. Solid waste collection is provided
through a franchise arrangement with a local refuse collection service.
In addition to the usual city services, Carlsbad offers a variety of programs
to help local residents and businesses. The City operates a redevelopment agency
that encompasses 0.4 square miles of the downtown area, as well as a housing
authority that provides 330 low and moderate income families with housing
assistance. The City's literacy program, funded through a state grant, provides
adult education to local area residents. Carlsbad's older residents receive
assistance through the City's senior citizen programs. Also, the City provides
major support for the Convention and Visitors Bureau operated in cooperation with
the Carlsbad Chamber of Commerce. Finally, the City has reserved over $100,000
for support of the arts, art programs, and the purchase of works of art.
Significant Events and Accomplishments
During 1988-89 the City experienced many significant events or accomplishments
that may not be evident from a review of the financial statements. Some of the
more important events are summarized below.
Growth Control - 1988-89 was the second full year of operation under the City's
Growth Management Program. Under this program developers are allowed to build
only if infrastructure improvements required to serve the development are
financed and constructed as a part of the development. Standards have been
established in eleven areas such as circulation, libraries, fire protection,
parks, drainage, water, sewers, and open space. An outgrowth of this program
is a long range capital improvement program which covers the current year through
build out of the City. This program has had a significant effect on the building
industry by reducing the number of dwelling units constructed in 1988-89 to 320.
This compares to 482 housing units constructed in 1987-88 and 2,039 units
constructed in 1986-87. The most significant aspect of growth management for
1988-89 was the City's effort to create a comprehensive Growth Management
Financing Program. This program attempts to draw the infrastructure funding
needs of the City and other agencies, such as schools, together with the needs
of development to fund public purpose projects. The coordinated effort depends
on the rational use of Mello-Roos Community Facilities District, 1913/1915 Act
Assessment Districts and fee programs to finance facilities concurrent with
demand without overburdening the land or home owner. Final action on this
program will occur in mid 1989-90.
Construction of Capital Projects - The City continued the emphasis on construc-
tion of major infrastructure projects during 1988-89. Spending on capital
projects reached an all time high in 1988-89 with more than $20 million being
invested in infrastructure. Projects ranged from small signal and intersection
improvements to major parks and community buildings. Some of the more
significant projects are described below:
• Street and Traffic Circulation - The City Council continued to emphasize
street and road improvements during 1988-89. Projects ranged from small
system enhancements such as the intersection improvements at Cannon Road
and Carlsbad Boulevard, to major projects such as the reconstruction of
a portion of Rancho Santa Fe Road, the completion of College Boulevard,
and the construction of six lanes on Palomar Airport Road from 1-5 to
Palomar Airport. The College Boulevard and Palomar Airport Road projects
were funded through the use of 1913/1915 Act assessment district bonds
with some City participation.
• Calavera Hills Park - In 1987-88, the City completed construction of
Phase I of Calavera Hills Park, a 10-acre park providing lighted ball
fields, tennis courts, tot lot and picnic area to the residents of
northeast Carlsbad. Phase II of Calavera Hills Park, which began
construction during 1987-88, was completed during 1988-89. Phase II
included the addition of a 17,000 square foot community center, tennis
courts and ball fields.
• Fire Station #5 - The City began construction of Fire Station #5 during
late 1987-88. This project, completed in 1988-89, now provides fire
administrative offices, training facility and fire fighting capability
for the central portion of Carlsbad.
• Carlsbad Senior Center - This facility began construction in 1988-89.
When completed next year it will provide 12,000 square feet of offices
and activity rooms to the senior citizen population of Carlsbad. In
addition, a joint use agreement with the Carlsbad Unified School District
has provided the site for the building in exchange for the construction
of 14,000 square feet of office space for the District administrative
offices.
Transient Occupancy Tax - The voters of Carlsbad approved a ballot measure on
June 6, 1989, authorizing an increase in the Transient Occupancy Tax from the
present 8% to 9% in August, 1989 and 10% in January, 1990. This measure will
provide the City General Fund with about $500,000 in additional revenue in 1989-
90.
Golf Course - On the same ballot, the voters also directed the City Council to
proceed with the construction of a variety of recreational facilities including
golf courses, soccer fields and tennis facilities. Planning has begun for the
construction of these facilities over the new few years.
Financial Statement Format
This report is designed to provide both summarized and detailed information on
the operation of each of the City's funds. The report is organized as follows:
Financial Section - This section contains the combined or sum-
marized financial statements for all funds as
well as the notes to the financial statements.
Supplemental Data - This section provides more detailed information on
the activity within each fund including revenues,
expenditures, changes in fund balances, comparisons
to budget figures and other related data.
Statistical Section - This section provides data on the City's fiscal
activity over the past ten years including revenues,
expenditures, debt, assessed value, and demographic
information.
Accounting System and Budgetary Control
The City's accounting system is designed around a few basic principles.
(1) The City is not one single entity. It is the total of many entities, each
with its separate function and legal restrictions on the use of resources.
In the private sector, a corporation may have many "subsidiaries" which make
up the parent corporation. In the public sector, a city government may have
a variety of "funds" that provide the basis for separately recording the
financial data related to a specific activity. A fund is an accounting
entity with a complete set of self-balancing accounting records. Each fund
has been established because of some restriction on the use of resources
received by that fund. This report includes the transactions of all entities
over which the City Council of the City of Carlsbad has authority (as defined
by the Governmental Accounting Standards Board).
(2) The City's accounting system operates on a modified accrual basis for all
governmental type funds. Governmental funds include the General, Special
Revenue, Debt Service and Capital Project Funds. A modified accrual system
is one where a) revenues are recorded when received in cash; b) revenues are
accrued when they are both measurable and collectable within the accounting
period or soon enough after the end of the period to pay liabilities of the
period; and c) expenditures, other than interest or long term debt, are
recorded when liabilities are incurred.
(3) The proprietary fund types (the Water Utility, Sewer Enterprise and Internal
Service Funds) use the accrual method of accounting. Revenues and expenses
are recorded when earned and incurred, respectively.
(4) 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.
(5) 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
should not exceed budgeted figures. All appropriations expire at year end
unless specifically carried into the new fiscal year by Council action.
The Carlsbad Municipal Code requires that the Finance Director annually
prepare a budget for the City Manager showing estimated revenues and
expenditures.
Total City Operations
During 1988-89 the City staff of 458 full-time employees provided a complete
range of City services to the 62,030 residents and many businesses in Carlsbad.
Spending on all City programs totaled $64.2 million in 1988-89, an increase of
$15.5 million over 1987-88. This increase can be traced to the City's
construction program for major capital improvements which reached a new high in
1988-89. An increase is seen in General Fund expenditures due to the cost of
funding 26 new positions, increased charges from internal service funds,
continued emphasis of the street maintenance program, operating new capital
facilities and the funding of salary contracts with the three bargaining units
and management.
Revenues for 1988-89 totaled $63.9 million, an increase of about $13.2 million
or 26% over last years total of $50.7 million. This increase is directly linked
to several factors including: a continued increase in the City's property tax
base, strong growth in the sales tax base, a voter approved increase in the
transient tax rate, a high level of development activity related to the planning
process, and higher charges from internal service funds to the user departments.
Carlsbad is entering 1988-89 in a fiscally sound position due to the City
Council's actions anticipating the downswing in development activity caused by
implementation of the Growth Management program in 1987-88 and 1988-89. The
general outlook for the next five years is promising with a growing tax base
providing the financing required to meet the demand for services.
The following report summarizes the revenues and expenditures (or expenses) for
the City of Carlsbad for the fiscal year ended June 30, 1989.
Revenue from All Fund Types
(In thousands)
General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Enterprise Funds'1'
Internal Service Funds'1'
TOTAL REVENUES
1988-89
$36,547
3,035
1,462
13,521
4,738
4.553
1987-88
$28,257
2,943
1,224
10,346
4,400
3,524
1988-89 over
(under)1987-88 % Change
$ 8,290
92
238
3,175
338
1.029
29.3%
3.1
19.4
30.7
7.7
29.2
26.0%
(1)Includes operating and non-operating revenues
Expenditures (or Expenses) All Fund Types
(In thousands)
1988-89 over
1988-89 1987-88 (under)1987-88 % Change
General Fund $29,936 $25,533 $ 4,403 17.2%
Special Revenue Funds 2,620 2,718 ( 98) ( 3.6)
Debt Service Funds 2,796 1,299 1,497 115.2
Capital Project Funds 20,393 12,410 7,983 64.3
Enterprise Funds11' 3,617 3,364 253 7.5
Internal Service Funds(1) 4.870 3.405 1.465 43.0
TOTAL EXPENDITURES $64.232 $48.729 $15.503 31.8%
(1) Includes operating and non-operating expenses
General Governmental Functions
The General Governmental function includes the operations of the General, Special
Revenue, Debt Service and Capital Project funds. During 1988-89 revenue from
all Governmental funds totaled $54.6 million, an increase of $11.8 million over
1987-88; expenditures totaled $55.7 million, up $13.4 million over last year.
A brief look at these numbers on a fund-by-fund basis is shown below.
General Fund
The City's General Fund is used to record all revenues and expenditures not
specifically restricted by law or Council policy. Major sources of revenue
include property tax, sales tax, licenses and permits, and charges for services.
Major categories of expenditures include police and fire services, libraries,
parks, street maintenance, and administrative functions.
General Fund revenues for 1988-89 totaled $36.5 million, up $8.3 million or
about 29.3% over the 1987-88 revenue of $28.3 million. This increase is due
primarily to the following factors:
• Property Tax Revenue - $10.3 million
Property Tax increased $1.7 million or 19.8% over 1987-88 due to a
continual increase in the secured property tax base. Although the rate
of development slowed significantly during the year, the value of new
construction and rate of resales remained high. Several major
properties changed hands this year, providing a boost to the City's
tax base. Assessed valuation rose from $4.0 billion in 1987-88 to $4.3
billion in 1988-89, a 7.5% increase.
• Sales Tax Revenue - $8.2 million
Sales tax revenue increased $1.1 million or 15.5% during 1988-89. This
increase reflects the new car dealership and shopping mall addition that
brought increased sales to Carlsbad.
• Vehicle License Fee Revenue - $2.0 million
Vehicle license fee revenue increased by $186,000 or 10.1% during 1988-
89. The vehicle license fee is set and collected by the State Department
of Motor Vehicles. Although DMV cannot readily provide statistics for
the Carlsbad area, they indicate that the growth in fee revenue is due
to an increase in the number of vehicles and a lowering of the average
age of vehicles owned by Carlsbad residents.
• Transient Occupancy Tax Revenue - $2.8 million
Transient occupancy tax (hotel room tax) revenues rose by more than
$750,000 or 37.9% over 1987-88. About $650,000 of this increase is due
to an increase in the transient occupancy tax rate from 6% to 8% at the
start of this year.
t Development Related Revenues - $4.8 million
In spite of slowing construction activity caused by the Growth
Management Program, the development community continues to process plans
and applications in anticipation of meeting the growth management
standards in the future. Revenue in 1988-89 from development related
fees and permits totals $4.8 million, up $2.1 million over 1987-88.
This increase of 79% indicates the high level of interest in building
in Carlsbad.
• Interest Income - $2.1 million
Interest income has risen to $2.1 million for 1988-89, an increase of
$1.0 million or 97% over 1987-88. This increase represents both higher
average interest rates for 1988-89 and a larger cash portfolio.
• Reimbursed Expenditures - $1.0 million
The City received a reimbursement for prior payments to the Public
Employees Retirement Systems (PERS) of $970,000 in 1988-89. This is
a one time repayment based on calculations of overpayments done by PERS.
The following table summarizes General Fund revenues by major category for 1988-
89 and 1987-88:
General Fund Revenues
(in thousands)
1988-89 over
Category 1988-89 1987-88 (under)1987-88 % Change
Taxes $22,615 $19,197 $3,418 17.8%
Licenses & Permits 4,555 4,138 417 10.1
Charges for Services 4,024 2,250 1,774 78.8
Fines & Forfeitures 479 435 44 10.1
Interest Income 2,087 1,061 1,026 96.7
Other 2,787 1,176 1,611 137.0
$36,547 $28,257 $8,290 29.3%
General Fund expenditures totaled $29.9 million for 1988-89, up $4.4 million or
17.2% over 1987-88. This increase is due primarily to the following:
t Public Safety
Spending on public safety programs totaled $11.7 million, up $1.6 million
or 16.1% over 1987-88. This increase reflects efforts to maintain full
safety service staffing and the opening of Fire Stations No. 5 and No.
6 in central southwest Carlsbad. Other cost increases have been held
to a minimum.
• Public Works
Public Works program spending grew by $0.9 million or about 19.3% in
1988-89. This increase is directly related to the City's street overlay
and maintenance program.
• Culture and Recreation
Culture and Recreation spending rose $0.6 million or 11.7% over 1987-88
due to the opening of a new park in northeast Carlsbad and minor
increases in general operating costs for the Library and Parks
Departments.
• General Government
Spending in general government and administrative programs rose by $1.3
million or about 22.3%. This increase is spread throughout the many
departments in this category. Major factors in this increase include:
additional changes from internal service funds, costs related to the
development of the growth management finance program, general salary
increases, general fund expenditures on minor capital improvements,
increased building maintenance efforts, and the recording of interest
paid on fines deposited by developers as bonds or guarantees, as required
by state law.
Total General Fund expenditures are summarized in the table below:
General Fund Expenditures
(in thousands)
Category
General Government
Public Safety
Public Works
Culture & Recreation
1988-89
$ 6,971
11,728
5,751
5,486
1987-88
$ 5,698
10,102
4,820
4.913
1988-89 over
(under)1987-88
$1,273
1,626
931
573
% Change
Special Revenue Funds
The City's Special Revenue Funds, which account for the collection and use of
special or restricted revenues, received $3.0 million in total revenue in 1988-
89. This is an increase of $92,000 or about 3% over last year. This change is
the net result of a small reduction in total grants received by the City, offset
by increased interest and collections of special charges or donations to the
senior center program and street lighting fund.
Category
Taxes
Intergovernmental
Charges for Services
Interest Income
Other
Special Revenue Funds
Revenues
(in thousands)
1988-89
$ 754
1,836
65
211
169
1987-88
$724
,933
71
119
96
1988-89 over
(under)1987-88$
(
30
97)
6)
92
73
% Change
1%
0)
( 8.5)
77.3
76.0
3.1%
Expenditures from the Special Revenue Funds support a wide variety of programs
and projects. Some of the major uses of funds include:
• Public works programs such as street lighting.
• Cultural programs, including grants from the California Library Services
Act, the Adult Learning program, and the Senior Nutrition program.
• Special programs such as the Police Asset Forfeiture program and Civic Arts
program.
• Welfare programs such as the HUD-sponsored Carlsbad Housing Authority rental
assistance program.
Spending in Special Revenue Funds totaled $2.6 million in 1988-89, an decrease
of $98,000 or about 3.6% from 1987-88. As the table below shows, major decreases
were seen in the capital projects and culture and recreation categories. This
reflects the completion of several major grant funded projects during 1987-88.
Category
General Government
Public Works
Culture & Recreation
Welfare
Capital Outlay
Special Revenue Funds
Expenditures
(in thousands)
1988-89
$ 99
585
322
1,614
-0-
1987-88
$ 28
556
446
1,585
103
1988-89 Over
(under)1987-88
$
(
(($
71
29
124)
29
103)
98)
% Change
253.6%
5.2
( 27.8)
1.8
(100.0)
( 3.6)%
Capital Project Funds
Under the accounting definition used by the City, a capital project fund is one
that accounts for the receipt and disbursement of monies that are restricted for
the acquisition or construction of capital facilities (other than those financed
by enterprise funds).
Capital projects funds for the City of Carlsbad include those supported by the
City's public facilities fees, park in-lieu (park development) fees, drainage
fees, traffic impact fees, bridge and thoroughfare district fees, gas tax funds
and general funds ear-marked for capital purposes in the Capital Construction
Fund. The capital projects supported by the City's Redevelopment Agency are also
included in this group.
Revenue in the capital projects funds totaled $13.5 million, up $3.2 million or
30.7% from the 1987-88 total of $10.3 million. This increase is due to a
combination of factors, the most prominent of which is the contributions from
peroperty owners in assessment districts, offset by the reduced revenue from
fees charged to developers building within Carlsbad. During 1988-89, the rate
of development continued to slow, thereby reducing the collections from develop-
ment related fees.
Capital Projects Funds
Revenues
(in thousands)
Category
Taxes
Intergovernmental
Charges for Services
Interest
Contributions from
Property Owners
Other
1988-89
$ 1,647
1,041
3,092
3,008
4,530
203
1987-88
$ 1,661
573
5,969
2,131
12
1988-89 Over
(under)1987-88
$ (14)
468
(2,877)
877
4,530
191
% Change
81.7
(48.2)
41.1
100
10
Spending on capital projects totaled $20.4 million, an increase of $8.0 million
or 64.3% over 1987-88. This level of capital project construction represents
the fifth year of the City's major effort which has provided more than $80
million in improvements. Projects planned for 1989-90 could carry this trend
into a sixth year with more than $31 million of capital projects budgeted in the
new year. The City Council continues to set a high priority on the construction
of quality infrastructure improvements.
Some of the key projects under construction or completed during this year
include:
• Storm Drain Masterplan - This plan defines the capital needs for the
storm drainage program from today to buildout.
• Carlsbad Boulevard Widening - This improvements widens Carlsbad
Boulevard from two lanes to four lanes from Agua Hedionda to Cannon
Road.
• Design of the Rancho Santa Fe Road Interim Improvements - This project
will eliminate the "S" curve on Rancho Santa Fe Road. Construction will
occur in 1989-90.
• Chase Field Improvements - This major renovation of Chase Field provided
a better, more usable athletic facility at Chase Field.
• Fire Station No. 5 - This project provided a major fire station and
administration facility for the center of the City.
• Calavera Hills Park Phase II - The construction of the final eight acres
of this park and the 17,000 square foot community facility completes
this community park in the northeast quadrant of the City.
• Palomar Airport Road and College Boulevard Assessment District - These
major circulation system links provide for traffic flow to the center
of Carlsbad from now through buildout.
• Carlsbad Senior Center - This major civic facility designed to serve
the senior citizen population of Carlsbad is scheduled for dedication
in December, 1989.
• Downtown Streetscape Program - Phase I and II of the Streetscape program
will beautify the downtown area with improvements to Carlsbad Boulevard
and Elm Avenue.
11
Category
General Government
Capital Projects
Principal, Interest
and Fiscal Charges
Capital Project Funds
Expenditures
(in thousands)
1988-89
$ 63
19,787
543
1987-88
$ 253
11,114
1.043
410
1988-89 over
(under)1987-88
$( 190)
8,673
( 500)
% Change
(75.1)
78.0
(64.3)
64.3%
Debt Service Funds
The City's Debt Service funds record the payment of interest and principal on
the current portion of outstanding debt. At June 30, 1989, the total debt
payable from non-enterprise sources was $32 million, comprised of Library, Sewer,
Parking Authority and Building Authority Bonds, Hosp Grove Certificates of
Participation, College Boulevard 1915 Act Assessment District bond issue and
Redevelopment Tax Allocation Bonds.
Revenues for 1988-89 reflect an increase of $238,000 over 1987-88. This change
is directly related to the City's issuance of the Hosp Grove Certificates of
participation and the Redevelopment Agency's Tax Allocation bond issue during
1987-88. Funds held on deposit for these issues have increased the total
interest earnings for debt service funds.
Debt Service Funds
Revenues
(in thousands)
Category
Taxes
Interest
1988-89
$1,124
338
1987-88
$1,111
113
1988-89 over
(under)1987-88
$ 13
225
238
% Change
1.1%
199.1
19.4%
Debt related expenditures also rose in 1988-89 because of the debt issues
completed in 1987-88. The timing of principal and interest payments on these
issues has caused the full effect of the repayment schedules to be seen in this
year. Further information on each bond issue is included in the footnotes to
the financial report.
12
Debt Service Funds
Expenditures
(in thousands)
Category
Principal
Interest
Other
1988-89 1987-88
$ 300
991
_8
1988-89 over
(under)1987-88
$ 235
1,263r
$1,497
% Change
78.3%
127.4
( 12.5)
115.2%
The City's tax rate to support general obligation debt for 1988-89 dropped 2.2%
from the 1987-88 rates. Increased assessed valuation and a growing tax base made
these decreases possible.
Library bonds
Sewer Bonds
Property Tax Rates
Supporting General
Obligation Bonds
1988-89
.00041%
.00316%
.00357%
1987-88
.00047%
.00318%
.00365%
1988-89 over
(under)1987-88
(.00006)%
(.00002)%
(.00008)%
% Change
(12.8)%
( 0.6)%
2.2)%
Enterprise Operations
Carlsbad operates a Water Utility and a Sewer Enterprise Fund. An enterprise
fund is one where most or all of the costs involved are supported by user fees.
Within these funds the City uses many of the accounting practices applicable to
commercial business including the recording of depreciation on fixed assets and
the allocation of overhead costs from support services. User fees are set on
an annual basis to cover both operating costs and debt service needs.
Revenue in the enterprise funds totaled $4.7 million, up $338,000 or about 7.7%
from 1987-88. This increase is primarily due to a growth in the service system
customer base.
13
Enterprise Funds
Total Operating and Non-Operating Revenues
(in thousands)
Category
Water Utility
Sewer
1988-89
$1,760
2,978
$4,738
1987-88
$1,638
2.762
E4,40(
1988-89 over
(under)1987-88
$ 122
216
% Change
7.4%
7.8%
7.7%
Expenses in the Enterprise Funds totaled $3.6 million, up $252,000 over 1987-
88. This increase is primarily due to additional charges for services provided
by other City departments and general cost increases in operating costs offset
by a reduction in one time bad debt expenses experienced in 1987-88 and reduced
water system repair costs. During this same period the number of accounts
provided with water and/or sewer service grew from 14,830 to 15,580, an increase
of 750 accounts or 5%.
Enterprise Funds
Total Operating and Non-Operating Expenses
(in thousands)
Category
Water Utility
Sewer
1988-89
$1,217
2.400
1987-88
$1,450
1.915
1988-89 over
(underH987-88
$(233)
485
% Change
(16.1)%
25.3
7.5% '
Water Revenue bonds outstanding at June 30, 1988, totaled $325,000. There were
no revenue bonds issued from enterprise funds during 1988-89.
Internal Service Funds
Internal Service Funds are used to account for services provided by a City
department for other City departments. As with an Enterprise Fund, the source
of revenue is user fees charged to the departments receiving the service.
SELF-INSURANCE PROGRAM--WORKERS' COMPENSATION & GENERAL LIABILITY
The City has been self-insured for Workers' Compensation since September, 1978.
The activity for this program is recorded in the Workers' Compensation Self-
Insurance Internal Service Fund. Workers' compensation claims for 1988-89
14
amounted to $468,000 compared to $403,000 in 1987-88, an increase of about
$65,000 or 16%. The estimated claims payable at year end were $671,000, up
$251,000 or 60% over last year. Unreserved retained earnings totaled $674,000
at June 30, 1989.
The General Liability Self-Insurance Fund was established near the end of 1980-
81. Claims expense for 1988-89 totaled $1.3 million, up $462,000 or 54.0% over
the 1987-88 total of $855,000. The estimated claims payable at year end were
$1.9 million. Unreserved retained earnings totaled $821,000 at June 30, 1989.
OTHER INTERNAL SERVICE FUNDS
The City operates a central vehicle maintenance program servicing and replacing
both the rolling stock and small machinery. Operating costs for this program
were $1.4 million for 1988-89, up $508,000 or 59% over the 1987-88 total of
$866,000. A large portion of this increase can be attributed to changes in the
City's practices related to charging this fund for services performed by other
departments and an increase in fixed assets.
The City also operates a health insurance internal service fund for collecting
premiums, paying the insurance carrier, and holding reserve funds. At June 30,
1989, total health insurance retained earnings totaled $588,000.
The City's Data Processing internal service fund collects revenues and expenses
related to the providing of data processing services to the City.
Agency Funds
The City uses Agency Funds to account for assets held by the City for other
individuals, entities or governments. Typically these funds relate to
contractors' cash performance bonds, employee payroll deductions, or deferred
compensation accounts.
The City held a total of $8.8 million in Agency Funds as of June 30, 1989,
compared to $5.4 million at the end of 1987-88. This increase of $3.4 million
is due to several factors including: 1) the deposit of an additional $460,000
into the City's deferred compensation plans; 2) a net increase of $3.9 million
in contractor and miscellaneous deposits held by the City to guarantee developer
or contractor performance; and 3) the deposit of $0.9 million of assessment
district funds which are held by the City for road and drainage improvements.
15
Cash Management
The City Treasurer is charged with the responsibility of safeguarding the City's
assets, receiving all payments due the City and investing all inactive funds.
During this year the City Treasurer earned about $7.2 million in interest on
investments in all fund types from instruments earning from 0% to 10.6%, compared
to earnings of $4.9 million during 1987-88. Funds are invested in various types
of instruments as shown below. At June 30, 1989, the Treasurer had 100% of all
available funds invested. The City's total portfolio at year end was $80.9
million.
Below is a summary of cash and investments outstanding as of June 30, 1989:
Amount Invested
Interest Rates (in millions)
Cash 0.00 - 9.40
Certificates of Deposit 8.00 - 10.50
Other Deposits 0.00 - 9.21
Federal Agency Notes 7.26 - 10.37
Treasury Coupons 8.10 - 9.30
Corporate Notes 7.45 - 10.60
Commercial Paper 9.56 - 9.85
Bankers Acceptances 9.26 - 10.63
Miscellaneous Investments 7.10 - 9.15
The City Council has adopted a comprehensive investment policy (as required by
State law) specifying the type and term of City investments. This policy has
allowed the City Treasurer flexibility without endangering the safety, liquidity
or yield of the total portfolio.
Debt Administration
The ratio of net bonded debt to assessed valuation and the amount of bonded debt
per capita are useful indicators of the City's debt position to management,
citizens and investors. These data for the City for the year ended June 30,
1989, are as follows:
Ratio of debt to Debt
Amount Net Assessed Value Per Capita
Net general bonded debt $420,000 0.01% $6.77
This debt represents obligations payable directly from a tax levy applied to
property within the City of Carlsbad. The City's general bonded debt includes
outstanding Library and Sewer bonds.
16
Gann Limit - Appropriations Subject to Limit
In 1979, Proposition 4, the "Gann" initiative, was passed. The purpose of this
law is to limit government spending by putting a cap on the total proceeds of
taxes that may be appropriated each year. This limit is increased each year
through a formula that takes into consideration changes in the Consumer Price
Index and state per-capita income. When a city reaches this limit excess tax
revenue must be returned to the State or citizens through a process of refunds,
rebates, or other means that may be defined at that time. The Gann limit for
the City of Carlsbad has increased steadily since 1979 and still provides the
City with a comfortable operating margin. The Gann limit for the City of
Carlsbad for 1988-89 was $36.3 million, with appropriations of "proceeds of
taxes" of only $26.4 million. This allows the City a margin of $9.9 million.
CITY OF CARLSBAD
PROPOSITION 4 SPENDING LIMIT
VS. APPROPRIATION OF PROCEEDS OF TAXES
(Millions)
82 83 84 85 86
FISCAL YEAR
87 88 89
APPROP OF TAXES SPENDING LIMIT
17
Economic Outlook
The City's Capital Improvement Program calls for the construction of more than
$300 million in improvements between now and buildout. This program includes
new parks, libraries, fire stations, streets and other facilities to maintain
the level of service offered to the Carlsbad resident. This aggressive
construction program will place a burden on the operating budget that must be
managed through careful scheduling to match demands with resources. Uncontrolled
demand would easily out-pace the City's ability to pay for services.
The expansion of retail sales facilities, the addition of up to 11 new auto
dealerships, several small commercial centers, and continued plans for the
construction of a group of major shopping centers as well as the construction
of a major hotel in southern Carlsbad, provide the much needed tax base to
finance the growing service needs. Further, the continued industrial development
in the Palomar Airport Industrial Park area will add to Carlsbad's economic
health.
The citizens have also assisted in financing Carlsbad's future operating needs
by approving a second 2% increase in the Transient Occupancy Tax, raising the
City's TOT rate to 10% by 1990. This increase will provide more than $550,000
in 1989-90 toward General Fund operating costs.
The City's Growth Management Program holds the key to the timing of many of the
developments that will support the City through fees and taxes. This program
is designed to guarantee that no new development occurs without careful planning
of infrastructure and services. This process will cause some development to be
delayed or revised in scope during the planning process, which in turn may delay
the city's ability to collect additional revenue. City staff is currently
involved in a long range financing program which address the funding needs of
the City's $300 million capital improvement program, more than $150 million in
street improvements and $120 million of school district financing requirements.
This program will be presented to Council in late 1989.
Carlsbad's general outlook is for a healthy economy with adequate General Fund
budgets for the next two years as the Growth Management Program begins to allow
some key developments to occur. The City should see some ability to expand
services in the future without depending on tax increases. The years following
appear to offer expanding opportunities for the City Council to enhance service
to the community.
18
Certificate of Achievement for Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada
(GFOA) and the California Society of Municipal Finance Officers (CSMFO) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City
of Carlsbad for its comprehensive annual financial report for the fiscal year
ended June 30, 1988. In order to be awarded a Certificate of Achievement, a
governmental unit must publish an easily readable and efficiently organized
comprehensive annual financial report, whose contents conform to program
standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. A Certificate of Achievement is
valid for a period of one year only. We believe our current report continues
to conform to the Certificate of Achievement Program requirements, and we are
submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgments
This report has been a joint effort by many people from many different areas of
responsibility. The dedicated efforts of Sandra Schmidt, Assistant Finance
Director, and her accounting staff, deserve full credit for the preparation and
contents of this report. We appreciate Lisa Hildabrand and Sue Garton of KPMG
Peat Marwick for the professional way in which the audit of this financial report
was conducted. It has been a pleasure to work with the KPMG Peat Marwick staff
throughout this period.
Respec^ful1y submi tted,
I
-/JAMES F. ELLIOTT
Finance Director
It'tig
19
(t-
20
OCEANSDE
CARLSBAD
21
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Carlsbad,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1988
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFR's) achieve the highest
standards in government accounting
and financial reporting.
Executive Director
22
CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS
DEDICATED TO THE PROFESSIONAL ADVANCEMENT OF MUNICIPAL FINANCE ADMINISTRATION
Certificate o
NJ
CO
FOR
OUTSTANDING FINANCIAL REPORTING
PRESENTED TO THE
Citu of Car (shad
^J^J
This certificate is issued in recognition of meeting professional standards and criteria in reporting
which reflect a high level of quality in the annual financial statements and in the underlying accounting
system from which the reports were prepared for the fiscal year/ 90 7" 88
Chair, Professional Standards Committee ^^EsCaralHlMlll^flwSiWCL / President
/<** runn 2*
CITY OF CARLSBAD
ELECTED CITY OFFICIALS
Claude A. Lewis, Mayor
Ann J. Kill chin, Mayor Pro Tern
John J. Mamaux, Council Member
Mark V. Pettine, Council Member
Eric Larson, Council Member
Aletha L. Rautenkranz, City Clerk
William C. Esterline, City Treasurer
ADMINISTRATION AND DEPARTMENT HEADS
Raymond R. Patchett, City Manager
Frank Mannen, Assistant City Manager
Martin Orenyak, Community Development Director
Vincent F. Biondo, Jr., City Attorney
Ralph Anderson, Utilities/ Michael Holzmiller,
Maintenance Director Planning Director
David Bradstreet, Parks and Clifford Lange, Library Director
Recreation director Ann Jensen, Personnel Director
James F. Elliott, Finance Director James Thompson, Fire Chief
Ruth Fletcher, Purchasing Officer Robert Vales, Police Chief
Lloyd Hubbs, City Engineer
CHAIRPERSONS, COMMISSIONS AND BOARDS
Matt Hall Planning Commission
Camille Mitkevich Personnel Board
Marvin Cap Building Authority
Jack Jardine Parking Authority
Mary Melideo Traffic Safety Commission
Milton Cooper Library Board
Tony Lawson Parks and Recreation Commission
Linwood J. Van Senior Citizen Commission
Matt Hall Design Review Board
Thelma Hays Housing and Redevelopment Committee
Joe Bear Arts Commission
Roy Blackford Historic Preservation Commission
Robert Sheppard Cable Television Foundation
24
CITY OF CARLSBAD, CALIFORNIA
ORGANIZATION CHART - JUNE 30, 1989
CITY CLERK I
VOTERS
J ,
CITY
COUNCIL
I
1—
CITY TREASURER 1
PARKS ft RIO. COMMISSION
PLANNING COMMISSION
LIBRARY BD. OP TRUSTBBS
PARKING AUTHORITY
SBNIOR CITIZBNS COMMISSION
DBSIQN RRVIBW BOARD
HISTORIC PRESERVATION COMM
CHILD CAR! COMMISSION
CITY
MANAGER
N>
Ul
I
ASSISTANT CITY
MANAGER
PARKS ft RECREATION
LIBRARY
RISK MANAGEMENT
PERSONNEL
PURCHASING
INFORMATION SYSTEMS
UTILITIES ft MAINT
ENTERPRISE FUNDS
CITY
ATTORNEY
TRAFFIC 8AFITY COMM
ARTS COMMISSION
PBRSONNIL BOARD
•UILDINQ AUTHORITY
CABLS TV FOUNDATION
HOUSING ft RIDIVBLOPyiNT
ADVISORY COyMITTH
PUBLIC IMPROVEMENT CORP
ASSISTANT TO THE
CITY MANAGER
COMMUNITY DEV
DIRECTOR
RESEARCH J
FINANCE
FIRE
POLICE
ENGINEERING
PLANNING
MUNICIPAL PROJECTS
BUILDING INSPECTIONS
REDEVELOPMENT
HOUSING AUTHORITY
26
KPMG Peat Marwick
Certified Public Accountants
Peat Marwick Main & Co.
750 B Street
San Diego, CA92101
Independent Auditors' Report
The Honorable Members of City Council
City of Carlsbad, California:
We have audited the general purpose financial statements of the City of
Carlsbad, California, as of and for the year ended June 30, 1989, as
listed in the accompanying table of contents. These general purpose
financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the general purpose financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the
City of Carlsbad, California, at June 30, 1989, 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.
Our audit was made for the purpose of forming an opinion on the general
purpose financial statements taken as a whole. The combining, individual
fund, and individual account group financial statements and schedules
listed in the accompanying table of contents are presented for purposes of
additional analysis and are not a required part of the general purpose
financial statements of the City of Carlsbad, California. Such
information has been subjected to the auditing procedures applied in the
audit of the general purpose financial statements and, in our opinion, is
fairly presented in all material respects in relation to the general
purpose financial statements taken as a whole.
fy.
October 20, 1989
27
Member Firm of
Klynveld Peat Marwick Goerdeler
CITY OF CARLSBAD
Combined Balance Sheet
All Fund Types and Account Groups
June 30, 1989
Governmental Fund Types
Assets
Cash and investments
Receivables:
Loans
Taxes
Accounts, net
Accrued interest
Due from other funds
Due from other
governments
Advances to other
funds
Inventory, at cost
Prepaid expenses
Restricted assets:
Cash and
inves tments
Accrued interest
Property, plant and
equipment, net
Amount available in
debt service funds
Amount to be
provided for
retirement of
general long-
term debt
Total assets
Special
Revenue
Debt
Service
Capital
ProjectsNotes General
4 $ 11,087,338 2,116,353 4,737,013 31,734,286
13
12
1
2
,750
225
289
732
11
,044
35
36
,821
,922
,312
,138
,000
,787
,428
,000
184
85
18
16
87
113
,839
,198
,575
,813
,919
,858
2,784 306
286
96,564 465
226
4,757
,767
,466
,686
,003
,352
16.212.746 2.623.555 4.836.361 37.776.560
See accompanying notes to financial statements.
28
Fund Types
Enterprise
12,818,660
1,726,090
130,333
106,323
163,980
Internal
Service
5,140,888
9,273
54,051
Proprietary
Fund Type
Agency
8,820,694
17,121
Fiduciary
Account Grouos
General
Fixed Assets
Long-
Term Debt
Total
(Memorandum
Only)
76,455,232
184,839
2,145,570
2,266,326
1,069,880
838,461
324,922
6,802,139
199,408
149,858
4,396,934
45,302
27,957,364 1,646,311
4,396,934
45,302
50,164,336 - 79,768,011
4,742,763 4,742,763
47.344.986 6.850.523 8.837.815
- 29.281.992 29.281.992
50.164.336 34.024.755 208.671.637
29
CITY OF CARLSBAD
Combined Balance Sheet
All Fund Types and Account Groups, Continued
June 30, 1989
Governmental Fund Types
Liabilities
Accounts payable
Accrued wages payable
Due to other funds
Advances from other funds
Due to other governments
Deposits payable
Deferred compensation
payable
Estimated claims payable
Accrued interest payable
Assessments payable
Current portion of revenue
bonds payable
Deferred revenue
Bonds and notes payable
Special assessment debt
with governmental
commitment
Obligations under
capital leases
Notes
13
12
Total liabilities
Fund Equity
Contributed capital
Investment in general
fixed assets
Fund balances:
Reserved
Unreserved
Retained earnings:
Reserved
Unreserved
Total fund equity
Total liabilities
and fund equity
11
11
11
9,11
15
14
14
14
14
General
502,498
1,230,001
Special
Revenue
51,127
27,411
72,933
203,542
860,100 44,706
2.796.141 196.177
2,782,622 1,088,637
10,633,983 1,338,741
Debt
Service
Capital
Projects
1,353,209
16,855
732,138
6,802,139
7,909
85,689 178,825
93.598 9.083.166
4,742,763 14,891,727
13,801,667
13.416.605 2.427.378 4.742.763 28.693.394
$ 16.212.746 2.623.555 4.836.361 37.776.560
See accompanying notes to financial statements.
30
Fund Tvpes
Internal
Enterprise Service
1,414,951 147,257
39,211 6,006
106,323
- -
- -
65,951
_ _
2,577,645
-
— —
160,000
2,070,778
163,766
Proprietary Fiduciary
Fund Tvpe Account Groups Total
General Long- (Memorandum
Agency Fixed Assets Term Debt Only)
8,263 - - 3,477,305
- - - 1,319,484
- - 838,461
- - 6,802,139
- - 72,933
6,203,652 - - 6,269,603
1,718,197 - - 1,718,197
2,577,645
- - - 211,451
907,703 - - 907,703
- - - 160,000
3,240,098
23,165,000 23,328,766
4.020.980 2.730.908 8.837.815
9,305,000 9,305,000
1.554.755 1.554.755
34.024.755 61.783.540
16,251,933 2,843,001
175,259
26.896.814 1.276.614
43.324.006 4.119.615
50,164,336
50.164.336
19,094,934
50,164,336
23,505,749
25,774,391
175,259
28.173.428
146.888.097
47.344.986 6.850.523 8.837.815 50.164.336 34.024.755 208.671.637
31
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and
Changes in Fund Balance
All Governmental Fund Types
For the year ended June 30, 1989
General
Revenues:
Taxes $ 22,614,962
Licenses and permits 4,554,879
Intergovernmental -
Charges for services 4,024,293
Fines and forfeits 478,830
Interest income 2,087,490
Contributions from property owners -
Miscellaneous 2.786.480
Total revenues 36.546.934
Expenditures:
Current:
General government 6,970,659
Public safety 11,728,140
Public works 5,751,486
Welfare
Culture and recreation 5,485,999
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges -
Total expenditures 29.936.284
Excess (deficiency) of revenues over expenditures 6.610.650
Other financing sources (uses):
Operating transfers in -
Operating transfers (out) (1.036.447)
Total other financing sources (uses) (1.036.447)
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses 5,574,203
Fund balance at beginning of year 7,766,454
Residual equity transfers 75.948
Fund balance at end of year $ 13.416.605
See accompanying notes to financial statements.
32
Total
Special Debt Capital (Memorandum
Revenue Service Projects Only)
753,750 1,123,781 1,647,480 26,139,973
- - - 4,554,879
1,835,988 - 1,040,548 2,876,536
65,494 - 3,092,270 7,182,057
- 478,830
210,637 338,533 3,008,213 5,644,873
4,529,710 4,529,710
169.166 - 202.521 3.158.167
3.035.035 1.462.314 13.520.742 54.565.025
99,476 6,529 62,425 7,139,089
- 11,728,140
584,607 - - 6,336,093
1,614,015 - - 1,614,015
322,095 - - 5,808,094
19,786,724 19,786,724
535,000 - 535,000
- 2.254.407 543.447 2.797.854
2.620.193 2.795.936 20.392.596 55.745.009
414.842 (1.333.622) (6.871.854) (1.179.984)
1,177,715 1,004,571 2,182,286
(80.244) (1.065.595) (2.182.286)
1.097.471 (61.024)
414,842 (236,151) (6,932,878) (1,179,984)
2,088,484 4,978,914 35,626,272 50,460,124
(75.948) - - =
2.427.378 4.742.763 28.693.394 49.280.140
33
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual (Budgetary Basis)
All Governmental Fund Types
For the year ended June 30, 1989
General Fund
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Welfare
Culture and recreation
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing uses - operating
transfers out
Excess (deficiency) of
revenues over expenditures
and other financing uses
Fund balance at beginning of year
Residual equity transfers
Fund balance at end of year
Budget
$ 22,167,000
4,210,000
2,812,000
393,000
1,000,000
706.000
31.288.000
8,285,403
12,030,357
7,186,513
5,673,769
33.176.042
(1,888,042)
(1.036.447)
(2,924,489)
7,766,454
Actual on
Budgetary
22,614,962
4,554,879
4,024,293
478,830
2,087,490
2.786.480
36.546.934
7,144,183
11,798,944
5,956,646
5,571,918
30.471.691
5,038,796
7,766,454
75.948
Variance
Favorable
(Unfavorable)
447,962
344,879
1,212,293
85,830
1,087,490
2.080.480
5.258.934
1,141,220
231,413
1,229,867
101,851
2.704.351
6,075,243 7,963,285
(1.036.447)
$ 4.841.965 12.881.198
7,963,285
75.948
8.039.233
See accompanying notes to financial statements.
34
Special Revenue Funds Debt Service Funds
Budget
690,000
1,955,100
61,000
80,000
154.000
Actual on
Budgetary
Basis
753,750
1,835,988
65,494
210,637
169.166
2.940.100 3.035.035
Variance
Favorable
(Unfavorable)
63,750
(119,112)
4,494
130,637
15.166
94.935
Actual on
Budgetary
Budget Basis
149,000 138,574
1,100 3,223
Variance
Favorable
(Unfavorable)
(10,426)
150.100 141.797
2,123
(8.303)
115,424
684,325
1,797,309
435,334
106,946
592,137
1,625,739
351,724
8,478
92,188
171,570
83,610
3.032.392 2.676.546 355.846
130,000 130,000
18.556 26.465 (7.909)
148.556 156.465 (7.909)
(92,292) 358,489 450,781 1,544 (14,668) (16,212)
(92,292) 358,489 450,781
2,088,484 2,088,484
- (75.948) (75.948)
1.996.192 2.371.025 374.833
1,544 (14,668)
124,682 124,682
126.226 110.014
(16,212)
(16.212)
35
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual, Continued
(Budgetary Basis)
For the year ended June 30, 1989
Total
(Memorandum Onlv)
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Welfare
Culture and recreation
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing uses - operating
transfers out
Excess (deficiency) of
revenues over expenditures
and other financing uses
Fund balance at beginning of year
Residual equity transfers
Fund balance at end of year
Budget
$ 23,006,000
4,210,000
1,955,100
2,873,000
393,000
1,081,100
860.000
34.378.200
8,400,827
12,030,357
7,870,838
1,797,309
6,109,103
130,000
18.556
36.356.990
(1,978,790)
(1.036.447)
(3,015,237)
9,979,620
Actual on
Budgetary
Basis
23,507,286
4,554,879
1,835,988
4,089,787
478,830
2,301,350
2.955.646
39.723.766
7,251,129
11,798,944
6,548,783
1,625,739
5,923,642
130,000
26.465
33.304.702
6,419,064
(1.036.447)
5,382,617
9,979,620
Variance
Favorable
(Unfavorable)
501,286
344,879
(119,112)
1,216,787
85,830
1,220,250
2.095.646
5.345.566
1,149,698
231,413
1,322,055
171,570
185,461
(7.909)
3.052.288
8,397,854
_
8,397,854
-
$ 6.964.383 15.362.237 8.397.854
See accompanying notes to financial statements.
36
CITY OF CARLSBAD
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings
All Proprietary Fund Types
For the year ended June 30, 1989
Total
Internal (Memorandum
Enterprise Service Only)
Operating revenues:
Metered water sales $ 1,114,737 - 1,114,737
Sewer service charges 2,096,997 ' - 2,096,997
Other charges for services 275,971 3,878,639 4,154,610
Miscellaneous 57.790 333.210 391.000
Total operating revenues 3.545T495 4,211.849 7.757.344
Operating expenses:
Personnel services 1,223,627 387,205 1,610,832
Office expenses 261,233 530,941 792,174
Repairs and maintenance 308,690 174,067 482,757
Professional services 1,122,137 25,883 1,148,020
Insurance 20,062 - 20,062
Purchased water 3,825 - 3,825
Depreciation and amortization 610,722 337,472 948,194
Fuel - 220,399 220,399
Supplies and parts - 138,326 138,326
Claims expense - 2.992.740 2.992.740
Total operating expenses 3.550.296 4.807.033 8.357.329
Operating loss (4.801) (595.184) (599.985)
Non-operating revenues (expenses):
Interest income 1,192,417 341,491 1,533,908
Interest expense and fiscal
agent fees (21,211) - (21,211)
Loss on disposal of property (45.101) (62.867) (107.968)
Non-operating income 1.126.105 278.624 1.404.729
See accompanying notes to financial statements.
38
Total
Internal (Memorandum
Enterprise Service Only)
Income (loss) before operating
transfers $ 1,121,304 (316,560) 804,744
Operating transfers in - 542,552 542,552
Operating transfers out - (542,552) (542.552)
Net income (loss) 1,121,304 (316,560) 804,744
Retained earnings at beginning
of year, as adjusted (note 3) 25.950.769 1.593.174 27.543.943
Retained earnings at end of year
(note 14) $ 27.072.073 1.276.614 28.348.687
39
CITY OF CARLSBAD
Combined Statement of Changes in Financial Position
All Proprietary Fund Types
For the year ended June 30, 1989
Sources of working capital:
Operations:
Net income (loss)
Items not requiring working capital:
Depreciation and amortization
Loss on disposal of property, plant
and equipment
Working capital provided by
operations
Increase in contributed capital
Contributions from other funds
Total sources of working
capital
Uses of working capital:
Acquisitions of property, plant
and equipment
Decrease in long-term revenue
bonds payable
Increase in restricted assets
Contributions to other funds
Total uses of working capital
Net increase (decrease) in
working capital
Elements of net increase (decrease) in
unrestricted working capital:
Cash and investments
Accounts receivable
Accrued interest receivable
Due from other funds
Inventory
Accounts payable
Accrued wages payable
Due to other funds
Deposits payable
Estimated claims payable
Current portion of revenue bonds
payable
Net increase (decrease) in
working capital
Enterprise
$ 1,121,304
610,722
45.101
1,777,127
785,866
2.562.993
160,000
298,353
1.794.740
768.253
453,743
38,671
(31,574)
6,709
(6,725)
321,288
680
(6,709)
(4,830)
(3.OOP)
Totals
Internal (Memorandum
Service Only)
(316,560) 804,744
337,472 948,194
62.867 107.968
83,779 1,860,906
635.240
785,866
635.240
719.019 3.282.012
1,336,387 914,269 2,250,656
9.078
160,000
298,353
9.078
923.347 2.718.087
(204.328) 563.925
740,364 1,194,107
(7,576) 31,095
(2,734) (34,308)
6,709
(6,725)
(49,094)
18,900
(904,188)
272,194
19,580
(6,709)
(4,830)
(904,188)
(3.QQQ)
768.253 (204.328) 563.925
See accompanying notes to financial statements.
40
CITY OF CARLSBAD
Notes to Combined Financial Statements
June 30, 1989
(1) Summary of Significant Accounting Policies
The City of Carlsbad, California (the City) was incorporated July 16,
1952. The City operates under a Council-Manager form of government and
provides the following services as authorized by its charter: general
government, public safety, public works, culture, recreation, and
community development. The City is not subject to federal or state
income taxes.
The accounting policies of the City conform to generally accepted
accounting principles as applicable to governmental units. The
following is a summary of the more significant policies:
(a) Description and Scope of the Reporting Entity
The Comprehensive Annual Financial Report includes all entities for
which the City exercises oversight responsibility as defined by the
National Council on Governmental Accounting (NCGA) Statement No. 3
"Defining the Reporting Entity." This responsibility includes, but
is not limited to, the authority to govern, manage, approve
budgets, and assume fiscal accountability.
The financial statements of the City include the financial activities
of the City of Carlsbad, the Housing Authority of the City of
Carlsbad, the Parking and Building Authorities of the City of
Carlsbad, the City of Carlsbad Public Improvement Corporation 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 basis of budget adoption, taxing authority,
funding and appointment of the governing board.
The City also has an interest in a joint sewage treatment facility
known as the Encina Water Pollution Control Facility. Since the
City does not have significant influence over the management or the
operation of the facility, it has not been included as a component
unit in the City's financial statements.
(b) Basis of Presentation
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
(Continued)
41
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) Summary of Significant Accounting Policies. Continued
(b) Basis of Presentation. Continued
are accounted for by providing a separate set of self-balancing
accounts that comprise its assets, liabilities, fund balance/
retained earnings, revenues, and 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 FUND TYPES;
Governmental Funds are used to account for the City's expendable
financial resources and related liabilities (except those accounted
for in proprietary and similar trust funds). The measurement focus
is upon determination of changes in financial position. The
following are the City's governmental fund types:
General Fund
The general fund is the general operating fund of the City. It is
used to account for all financial resources except those required
to be accounted for in another fund.
Special Revenue Funds
Special revenue funds are used to account for revenues derived from
specific sources (other than major capital projects) that are
restricted by law or administrative regulation to expenditures
for specified purposes.
Debt Service Funds
Debt service funds are used to account for the accumulation of
resources for, and payment of, general long-term debt principal,
interest and related costs.
Capital Projects Funds
Capital projects funds are used to account for financial resources
to be used for the acquisition or construction of major capital
facilities other than those financed by proprietary funds.
(Continued)
42
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) S^inTOflFy °f Significant Accounting Policies. Continued
(b) Basis of Presentation. Continued
PROPRIETARY FUND TYPES;
Proprietary funds are used to account for activities that are similar
to those found in the private sector. The measurement focus is
upon determination of net income and capital maintenance. The
following are the City's proprietary fund types:
Enterprise Funds
Enterprise funds are used to account for operations (a) that are
financed primarily through user charges, or (b) where the
governing body has decided that determination of net income is
appropriate.
Internal Service Funds
Internal Service funds are used to account for goods or services
provided by one department to other departments of the City on a
cost-reimbursement basis.
FIDUCIARY FUND TYPE:
Fiduciary funds are used to account for assets held by the City in a
trustee capacity or as an agent for individuals, private
organizations, other governmental units, and/or other funds. The
following is the City's fiduciary fund type:
Aenc
Agency funds are used to account for assets held by the City in an
agency capacity for individuals and private businesses. They do
not involve measurement of results of operations.
(Continued)
43
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) Summary of Significant Accounting Policies. Continued
(b) Basis of Presentation. Continued
ACCOUNT GROUPS!
Account groups are used to establish accounting control and
accountability for the City's general fixed assets and general
long-term debt. The following are the City's account groups:
General Fixed Assets Account Group
This account group is used to account for all fixed assets of the
City other than those accounted for in the proprietary funds.
General Long—Terra Debt Account Group
This account group is used to account for all long-term obligations
of the City except those accounted for in the proprietary funds
and trust funds.
(c) Measurement Focus and Basis for Accounting
Governmental 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
provides an indication of available, spendable resources.
Operating statements for governmental fund types report increases
(revenues) and decreases (expenditures) in available spendable
resources.
The proprietary fund types are 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.
Fiduciary fund types are custodial in nature (assets equal
liabilities) and do not involve measurement of results of
operations.
(Continued)
44
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) Summary of Significant Accounting Policies. Continued
(c) Measurement Focus and Basis for Accounting. Continued
Government and fiduciary fund types use the modified accrual basis of
accounting. Revenues are recognized when susceptible to accrual,
i.e., both measurable and available. Available means collectible
within the current period or soon enough thereafter to be used to
pay liabilities of the current period. In applying the susceptible
to accrual concept to intergovernmental revenues, the legal and
contractual requirements of the individual programs are used as
guidance.
Revenues that are accrued include real property taxes, sales tax,
interest, and state and federal grants.
Real property taxes are levied on October 15 against owners of record
at March 1. The taxes are due in two installments, on November 1
and February 1, and become delinquent after December 10 ' and
April 10, respectively. Under the provisions of NCGA
interpretation 3, property tax revenue is recognized in the fiscal
year for which the taxes have been levied, provided it is collected
within 60 days of the end of the fiscal year.
Governmental and fiduciary fund expenditures are recognized when the
liability is incurred except for principal and interest on
long-term debt. Debt service expenditures are recognized when due,
unless debt service fund resouces have been provided during the
current year for payment of principal and interest due early in the
following year, in which case the expenditure and related liability
is recognized in the current year.
Proprietary funds use the accrual basis of accounting, i.e., revenues
are recognized in the period earned and expenses are recognized in
the period incurred.
(d) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and
other commitments for the expenditure of monies are recorded in
order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary control in the
governmental funds. Encumbrances outstanding at year-end do not
constitute expenditures or liabilities, but are reported as
reservations of fund balance for subsequent-year expenditures.
(Continued)
45
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
inificant Accountin Policies. Continued
(e) Cash and
Cash includes amounts in demand and time deposits. Investments are
stated at cost or amortized cost, except for deferred compensation
plan assets which are shown in an agency fund at market value.
The City maintains a cash and investment pool. Interest income
earned as a result of pooling is allocated to the appropriate funds
based on average monthly cash balances.
(f) Inventories
Inventories consist of materials and supplies that are valued at the
lower of average cost or market and are recorded as expenses when
consumed.
(g) Compensated Absences
Vacation pay is payable to employees at the time used or upon
termination of employment. For governmental funds, the cost of
accumulated vacation expected to be paid in the next 12 months is
recorded as a fund liability and amounts expected to be paid after
12 months (if any) are recorded in the general long-term debt
account group. For proprietary funds, the cost of vacation is
recorded as a liability when earned.
(h) Self—Insurance
The City has been self-insured for general liability claims since
1981 and for workers' compensation claims since 1978.
General liability exposure is accounted for in the General Liability
Self-Insurance Internal Service Fund. The Fund is responsible for
collecting interfund premiums from other City funds and departments
and paying claim settlements. Interfund premiums are based on the
insured funds' claims experience. Claim settlement and loss
expenses are accrued in the General Liability Self-Insurance
Internal Service Fund for estimated reported claims.
(Continued)
46
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) Summary of Significant Accounting Policies. Continued
(h) Self—Insurancet Continued
The activities of the workers' compensation program are accounted for
in the Workers' Compensation Internal Service Fund. The City's
risk management department and a service company administer the
benefits. Funding is provided through premium charges to the
City's departments.
Past experience indicates that incurred but not reported claims for
general liability do not represent a material amount and,
therefore, they have not been accrued at year-end.
(i) Unbilled Services
Unbilled water revenue of the enterprise fund is recognized as earned
when the water is consumed.
(j) General Fixed Assets
General fixed assets are recorded as expenditures in the governmental
fund types and capitalized at cost in this group of accounts. In
the case of gifts or contributions, such assets are recorded in
general fixed assets at fair market value at the time received.
Fixed assets consisting of certain improvements other than buildings,
including roads, bridges, curbs and gutters, streets and sidewalks,
and drainage systems, have not been capitalized. Such assets
normally are immovable and of value only to the City. Therefore,
the purpose of stewardship for capital expenditures is satisfied
without recording these assets.
In the general fixed assets account group, construetion-in-process is
transferred to buildings or improvements upon approval by the City
Council which approximates the completion date.
No depreciation has been provided on general fixed assets.
(Continued)
47
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) Summary of Significant Accounting Policies. Continued
(k) Property. Plant and Equipment — Proprietary Funds
Property, plant and equipment used by proprietary funds is stated at
cost or historical cost. Contributed fixed assets are recorded at
fair market value at the time received. Depreciation is charged to
operations using a straight-line method based on the estimated
useful life of the related asset. The estimated useful lives of
the assets are as follows:
Years
Buildings and improvements 10 - 50
Wells, reservoirs and dams 10 - 100
Transmission and distribution lines 40 - 70
Sewer, sewer lines and wells 50
Sewage treatment facility 55
Filters, pumps and fire hydrants 10 - 50
Equipment 4-20
(1) Deferred Revenue
The deferred revenue in the General Fund represents cash received for
a traffic signal that has not been constructed and for the property
taxes due but not available.
The deferred revenue in the Special Revenue Funds and the Capital
Projects Funds represents property taxes due but not available.
The deferred revenue in the Debt Service Funds relates to a
prepayment of lease revenue from the General Fund to the Building
Authority and to special assessments collected in advance.
The deferred revenue in the Enterprise Funds relates to deposits or
in-kind prepayments for services to be rendered (e.g., sewer
installation, etc.).
(m) Reclassifications
A special revenue fund has been reclassified as a capital projects
fund due to the nature of the activity in the fund. This resulted
in a decrease in the beginning fund balance of the Special Revenue
Funds of $598,428 with a corresponding increase in the beginning
fund balance of the Capital Projects Funds.
(Continued)
48
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(1) Summary of SignJf jcflnt Accounting Policies. Continued
(n) Total C
Total columns on the combined statements are captioned "Memorandum
Only" to indicate that they are presented only to facilitate
financial analysis. Data in these columns do not present financial
position, results of operations, or changes in financial position
in conformity with generally accepted accounting principles. Such
data is not comparable to a consolidation since interfund
eliminations have not been made.
(2) Budgetary Data
The City follows these procedures in establishing its budgetary data:
1. During May or June, the City Manager submits to ' the City Council
a proposed operating budget for the fiscal year commencing the
following July 1. The budget includes proposed expenditures and
estimated revenues on a departmental basis.
2. Public hearings are conducted at City Council meetings to obtain
citizens comments during June.
3. Prior to July 1, the budget is enacted legally through passage of
an appropriation resolution.
The City Manager is authorized to make transfers of appropriated amounts
within a fund and function for up to $15,000. 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. During the year, several supplementary appropriations were
necessary.
Budgets for governmental type funds are adopted on the modified accrual
basis, except that encumbrances are treated as budgeted expenditures in
the year purchases are committed. Expenditures may not exceed budgeted
appropriations at the departmental level. Unencumbered appropriations
lapse at year end.
(Continued)
49
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(2) Budgetary Data. Continued
For purposes of budgetary presentation, actual generally accepted
accounting principal (GAAP) expenditures have been adjusted to include
encumbrances outstanding at year-end. Annual budgets are not adopted
for the capital projects funds, therefore, budget basis financial
statements have not been prepared because a comparison of such
budgetary amounts to annual revenues and expenditures is not
meaningful. In addition, budgets are not adopted for the following
debt service funds: Parking Authority, Building Authority, Hosp Grove
OOP's, College Boulevard and Redevelopment Bonds. Accordingly, the
revenues and expenditures for these funds have been excluded from the
budget basis financial statements.
The following schedule is a reconciliation of the budgetary and GAAP fund
balances:
Special Debt
General Revenue Service
Fund Funds Funds
Fund balance-budgetary basis $ 12,881,198 2,371,025 110,014
Encumbrances outstanding at
year-end 535,407 56,353
Fund balances of nonbudgeted funds - - 4.632.749
Fund balance-GAAP basis $ 13.416.605 2.427.378 4.742.763
(3) Prior Period Ad ju.fi ti'e.nt
In prior years, the City did not depreciate its portion of the Encina
Sewage Treatment Facility, a fixed asset of the Sewer Fund, which
resulted in an overstatement of its net property, plant and equipment
of $1,514,871, the amount of the estimated depreciation through June
30, 1988. This overstatement was corrected during the current year by
an adjustment to decrease the net property, plant and equipment and the
retained earnings of the Sewer Fund as of the beginning of the year for
the amount of the depreciation.
(Continued)
50
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(3) Prior Period Adjustment. Continued
In addition, the City's investment in this fixed asset had been
understated in prior years by $519,396. This understatement was
corrected in the current year by increasing the net property, plant and
equipment and the retained earnings of the Sewer Fund at the beginning
of the year.
(4) Cash and Investments
The City maintains a cash and investment pool that is available for use
by all funds. Each fund type's portion of this pool is displayed on
the combined balance sheet as "Cash and Investments." In addition,
investments are held separately by several of the City's funds.
Authority for Deposits and Investments:
The City's investment policy and state statutes authorize the City to
invest in obligations of the U.S. Treasury, its agencies and
instrumentalities, commercial paper rated A-l by Standard and Poor's
Corporation or P-l by Moody's Commercial Paper record, banker's
acceptances with a maximum maturity of 270 days, repurchase and
reverse repurchase agreements, certificates of deposit with national
and state licensed or chartered banks or federal or state savings and
loan associations, money market and mutual funds whose portfolios
consist of one or more of the foregoing investments, and the State
Treasurer's investment pool.
State statutes require that all deposits be insured or collateralized.
Depositories holding public funds on deposit are required to maintain
collateral in the form of a pool of securities with the agent of the
depository having a market value of at least 10 to 50 percent in
excess of the total amount of all public funds on deposit.
A summary of cash and investments is as follows:
Cash on deposit $ 31,657,726
Investments 49.194.440
80,852,166
Less restricted portion 4.396.934
Unrestricted cash and investments $ 76.455.232
(Continued)
51
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(4) Cash and InvestmentsT Continued
Deposits:
The following summary presents the amount of the City's deposits
which are fully insured or collateralized with securities held by the
City or its agent in the City's name (Category One), those deposits
which are collateralized with securities held by the pledging
financial institution's trust department or agent in the City's name
(Category Two), and those deposits which are not collateralized or
are collateralized with securities held by the pledging financial
institution or its trust department or agent but not in the City's
name (Category Three) at June 30, 1989.
Category Category Category Total Bank Carrying
One Two Three Balance Amount
Cash $ 1,300,000 20,101,809 5,671,830 27,073,639 25,664,847
Cash with
fiscal
agents - 5.992.879 - 5.992.879 5.992.879
$ 1.300.OOP 26.094.688 5.671.830 33.066.518 31.657.726
Investments;
The City categorizes investments according to the level of risk
assumed by the City. Category One includes investments that are
insured, registered or held by the City's agent in the City's name.
Category Two includes uninsured and unregistered investments held by
the counter-party's trust department or agent in the City's name.
Category Three includes uninsured and unregistered investments held
by the counterparty, its trust department or its agent, but not in
the City's name. Certain investments have not been categorized
because securities are not used as evidence of the investment. These
uncategorized investments include ownership interests in mutual funds
and similar instruments. The summary below identifies the level of
risk assumed by the City and the total carrying amount and market
value of the City's investments.
(Continued)
52
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
Cash and Investments. Continued
Investments. Continued'.
Category Category Category Total
Local agency
investment fund $
U.S. Government agency
obligations
U.S. Treasury securities
Corporate notes
Bankers' acceptances
Commercial paper
Mutual funds and other
Total $
One Three UncateqoHzed Investments
Market
Value
12,032,000 12,032,000 12,032,000
-
--
-
—
14,515,699
4,340,346
8,597,689
5,412,957
994,160
-
-
--
—3.301.589
14,515,699
4,340,346
8,597,689
5,412,957
994,160
3.301.589
14,156,798
4,182,828
8,627,233
5,294,588
985,680
3.301.589
33.860.851 15.333.589 49.194.440 48.580.716
At June 30, 1989, one of the City's securities was held by a brokerage
firm which is being liquidated in bankruptcy court at the request of
the Securities Investor Protection Corporation. The cost of the
security was $500,165. As the recovery of this amount is uncertain, an
allowance has been provided for the full amount.
During June 1988, the City instituted a new policy to provide for the
safekeeping of all securities by a third party custodian to prevent a
similar occurrence in the future.
The City has a $1,000,000 line of credit to be used for overdraft
liabilities. During the year ended June 30, 1989, this line of credit
was not used.
(Continued)
53
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(5) Property. Plant and Equipment
A summary of changes in the general fixed assets account group is as
follows:
Land
Buildings
Other improvements
Furniture and
equipment
Construction
in progress
Total
Balance
July 1,
1988
$ 16,867,465
17,742,957
1,177,389
4,254,760
1.599.766
$ 41.642.337
Additions Deletions
2,700,000
5,052,814
481,787
563,586 1,063,479
2.368.425 1.581.134
11.166.612 2.644.613
Balance
June 30,
1989
19,567,465
22,795,771
1,659,176
3,754,867
2.387.057
50.164.336
54
(Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(5) Property. Plant and Equipment. Continued
Construction in progress in
composed of the following:
the general fixed assets account group is
Senior Citizens
Center
Redevelopment
Parking
Facilities
Village Sign
Project
Fire Station #1
and #2 Remodel
Fire Station #6
and Apparatus
South Carlsbad Library
Alta Mira Park
Southwest Quad
Community Park Design
Holiday Park
Improvements
Carillo Ranch
Stabilization
Buena Vista Playground
Advance Planning -
Park Design
High School Courts
Resurface and Lighting
Project
Authorization
Expended
to date at
June 30,
1989 Committed
$ 3,800,000 2,206,948 1,593,052
550,000
982
225,000
294,825
2,682,000
1,000,000
190,000
100,045
90,000
15,000
20,480
125.566
27,468
803
19,568
46,791
8,304
15,993
109
3,117
18,772
6,128
12,896
20.160
522,532
179
205,432
248,034
2,673,696
984,007
189,891
96,928
71,228
8,872
7,584
105.406
9.093.898 2.387.057 6.706.841
There is no future financing required on any of the above noted
construction in progress.
(Continued)
55
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(5) Property. Plant;Euiment. Continued
A summary of proprietary fund type property, plant and equipment at
June 30, 1989 follows:
Land, water rights, rights-of-way
Buildings and improvements
Wells, reservoirs and dams
Transmission and distribution lines
Sewer, sewer lines and wells
Sewage treatment facility
Equipment and vehicles
Construction in progress
Less accumulated depreciation
Property, plant and
equipment, net
Enterprise
Funds
459,206
75,136
1,212,852
4,023,869
8,244,810
19,199,083
635,294
403.431
34,253,681
6.296.317
27.957.364
Internal
Service
Funds
2,827,771
2,827,771
1.181.460
1.646.311
(6) Joint Venture - Encina Water Pollution Control Facility
The Encina Water Pollution Control Facility (the Facility) is a sewer
system owned jointly by the Cities of Carlsbad and Vista, the Leucadia
County Water District, the Buena Vista Sanitary District, the
San Marcos County Water District and the Encinitas Sanitary District.
The Leucadia County Water District is the operator and administrator of
the facility and is responsible for the management, maintenance and
operations of the joint system. Ownership percentages are determined
by joint agreement at the time the assets are acquired. As of June 30,
1989, the Cities and Districts have the following approximate ownership
interest:
City of Carlsbad
City of Vista
Leucadia County Water District
San Marcos County Water District
Encinitas Sanitary District
Buena Vista Sanitary District
25%
30
17
18
5
5
(Continued)
56
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(6) Joint Venture - Encina Water Pollution Control Facility,, Continued
The latest available financial statements of the Facility, dated June 30,
1988 show the following:
Total assets $ 73,773,985
Total liabilities 1.662.956
Fund balance 72.111.029
Net change in fund balance $ 391.474
The Facility does not recognize net income or loss. Net operating
expenditures in excess of users' assessments are treated as accounts
receivable on the Facility's books and charged to users' accounts in
the following year. Conversely, users' assessments in excess of net
operating expenditures are treated as a liability and credited against
users' accounts, also in the following year. Under this basis, net
operating expenditures for the Facility totaled $3,654,318 in fiscal
year 1988. The net change in fund balance was attributed to plant
additions.
The City accounts for its portion of the Facility as a fixed asset of the
Sewer Fund, an enterprise fund of the City.
In March 1989, the City Council approved the Encina Financing Joint
Powers Authority Agreement (EFJPA). The EFJPA was formed to facilitate
financing of the expansion of the facility. The EFJPA includes the
Cities of Carlsbad and Vista, Leucadia County Water District and Buena
Vista Sanitary District.
In June 1989, the City and the EFJPA entered into an installment
purchase agreement for the City to acquire capacity in the Encina Sewer
Plant expansion.
In August 1989, the EFJPA issued Wastewater Revenue Bonds 1989 Series A
in the amount of $33,500,000. The City is under no obligation for the
repayment of these bonds other than to make timely payments under the
installment purchase agreement.
(Continued)
57
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Retirement Plan
The City contributes to the California Public Employees Retirement System
(PERS), an agent multiple-employer public employee retirement system
that acts as a common investment and administrative agent for
participating public entities within the state of California. For the
year ended June 30, 1989, the City's payroll for employees covered by
the PERS was $8,585,376 for miscellaneous employees and $5,162,353 for
safety employees. Total payroll for the same period was $15,720,749.
All full-time employees are eligible to participate as members of the
PERS. Benefits vest after an employee has been a member of the plan
for five years. Employees are eligible to retire after the age of 50
with 5 years of credited service. Annual retirement benefits are
determined based on age at retirement, the length of membership service
and the amount of earnings based on the highest thirty-six consecutive
months average for safety employees, and based on the highest twelve
consecutive months average for miscellaneous employees. The PERS also
provides death and disability benefits. These benefit provisions and
all other requirements are established by state statute.
Employees are required to make contributions ranging from 7 to 9 percent
of gross pay. The City is required to contribute the remaining amounts
necessary to fund the benefits for its members, using the actuarial
basis recommended by the PERS actuaries and actuarial consultants and
adopted by the PERS Board of Administration.
The amount shown below as the "pension benefit obligation" is a
standardized disclosure measure of the present value of pension
benefits, adjusted for the effects of projected salary increases and
step-rate benefits, estimated to be payable in the future as a result
of employee service to date. The measure is intended to help users
assess the funding status of the PERS on a going-concern basis, assess
progress made in accumulating sufficient assets to pay benefits when
due, and make comparisons among employers. The measure is the
actuarial present value of credited projected benefits, and is
independent of the funding method used to determine contributions to
the PERS.
(Continued)
58
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Retirement Plan. Continued
The pension benefit obligation was computed as part of an actuarial
valuation performed as of June 30, 1988. Significant actuarial
assumptions used in the valuation include (a) a rate of return on the
investment of present and future assets of 8.5 percent a year
compounded annually, (b) projected salary increases of 5 percent a year
compounded annually, attributable to inflation, (c) additional
projected salary increases of 2 percent a year, attributable to
seniority/merit, and (d) no post-retirement benefit increases.
The total unfunded pension benefit obligation applicable to the City's
employees was $1,864,067 at June 30, 1988 (the date of the latest
actuarial valuation), as follows:
Pension benefit obligation:
Retirees and beneficiaries currently receiving
benefits and terminated employees not yet
receiving benefits $ 13,419,968
Current employees:
Accumulated employee contributions including
allocated investment earnings 7,642,952
Employer financed-vested 8,447,662
Employer financed-nonvested 738.863
Total pension benefit obligation 30,249,445
Net assets available for benefits at cost
(market value is $32,103,863) 28.385.378
Unfunded pension benefit obligation $ 1.864.067
None of the total change in the pension benefit obligation from the prior
year resulted from changes in benefit provisions or in actuarial
assumptions.
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected
benefit cost method. That is, it takes into account those benefits
that are expected to be earned in the future as well as those already
(Continued)
59
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Retirement Plan. Continued
accrued. According to this cost method, the normal cost for an
employee is the level amount which would fund the projected benefit if
it were paid annually from date of employment until retirement. PERS
uses a modification of the Entry Age Cost Method in which the
employer's total normal cost is expressed as a level percentage of
payroll. FERS also uses the level percentage of payroll method to
amortize any unfunded actuarial liabilities. The amortization period
of the unfunded actuarial liability ends on June 30, 2000.
The significant actuarial assumptions used to compute the actuarially
determined contribution requirement are the same as those used to
compute the pension benefit obligation, as previously described.
The actuarially determined employer and employee contributions applicable
to the City at June 30, 1989 were as follows:
Miscellaneous
Emloees
Required normal cost
contribution
Amortization of the
unfunded (overfunded)
actuarial accrued
liability
Total required
contributions
Actual employer
contributions
Actual employee
contributions
Total actual
contributions
Contributions
$ 1,331,809
(730.787)
$ 601.022
$ 728,041
601.022
$ 1.329.063
Covered
Fayroll
15.5%
(8.5%)
7.0%
8.5%
7.0%
15.5%
Safety
Emloees
Contributions
1,207,887
218.005
1.425.892
961,281
464.611
1.425.892
Covered
Payroll
23.4%
4.2%
27.6%
18.6%
9.0%
27.6%
(Continued)
60
21
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(7) Retirement Plan. Continued
The City has a surplus related to miscellaneous employees as a result of
prior year actuarial gains. In order to maintain a level pattern of
contributions, the City has chosen not to apply it to fully offset
current year's contributions.
Trend information gives an indication of the progress made in
accumulating sufficient assets to pay benefits when due. Systemwide
ten year information is not yet available, however the available trend
information may be found on page 157 of the City's Comprehensive Annual
Financial Report. Three year trend information follows. The pension
benefit obligation was not calculated by PERS for the 1986 plan year,
therefore, some of the percentages noted below were not available (NA)
for disclosure:
1988 1987 1986
Net assets available for benefits
as a percentage of pension benefit
obligation 93.8% 91.2% NA
Unfunded pension benefit obligation as a
percentage of annual covered payroll 14.2% 19.0% NA
Actuarially determined employer
contributions as a percentage of
annual covered payroll 13.9% 16.2% 18.5%
(8) Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available
to all City employees, permits them to defer a portion of their salary
until future years. Amounts deferred may not exceed the lesser of
$7,500 or 25% of a participants' "includable compensation," as defined
in the participation agreement. The deferred compensation is not
available to employees until termination, retirement, death, or
unforeseeable emergency.
(Continued)
61
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(8) Deferred Compensation Plan. Continued
All amounts of compensation deferred under the plan, all property and
rights purchased with those amounts, and all income attributable to
those amounts, property, or rights are (until paid or made available to
the employee or other beneficiary) solely the property and rights of
the City (without being restricted to the provisions of benefits under
the plan), subject only to the claims of the City's general creditors.
Participant's rights under the plan are equal to those of general
creditors of the City in an amount equal to the fair market value of
the deferred account of each participant.
The City believes it has no liability for losses under the plan but does
have the duty of due care that would be required of an ordinary prudent
investor. The City believes that it is highly unlikely that it will
use the assets to satisfy the claims of general creditors in the future.
(9) 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 agreed to pay an aggregate
amount of $700,040 including interest at 10%. The annual principal and
interest payments are $70,000 through 1991 and $1 annually for each of
the remaining forty years. The City has the option to purchase the
leasehold at any time for the sum of $1. The leasehold interest of
$430,152 has been recorded in the City's general fixed asset account
group.
In August 1987, the City entered a sale and leaseback agreement with a
financial institution for the Community Development Building.
Principal and interest payments totaling $234,529 are to be paid each
year through 1997. The City's leasehold interest of $1,602,160 has
been recorded in the City's general fixed asset account group.
(Continued)
62
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(9) Obligations Under Capital Leases. Continued
The following is a summary by year of future minimum lease payments under
capital leases (paid from the General Fund) and the present value of
minimum lease payments at June 30, 1989:
Annual Minimum
Year ending June 30t Lease Payments
1990 $ 304,529
1991 304,529
1992 234,530
1993 234,530
1994 234,530
Thereafter 820.884
Total minimum lease payments 2,133,532
Less amounts representing interest 578.777
Present value of minimum lease payments $ 1.554.755
(10) Obligations Under Operating Leases
In June 1988, the City's Redevelopment Agency entered into an agreement
to lease a parking lot from a private party. The lease requires
monthly rental payments of $3,085 for twenty years. Total annual rent
expense is $37,020.
The following is a schedule by year of future minimum rental payments
required under the operating lease at June 30, 1989:
Annual
Year ending June 30. Rental Expenses
1990 $ 37,020
1991 37,020
1992 37,020
1993 37,020
1994 37,020
Thereafter 518.280
Total minimum lease payments $ 703.380
(Continued)
63
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(11) Long-term Debt
The following is a summary of changes in long-term debt for the year
ended June 30, 1989:
Principal
Balance
July 1,
1988 Retirements
Principal
Balance
June 30,
1989
General long-term debt
account group:
Bonds and notes
payable
Special assessment
debt with
governmental
commitment
Obligations under
capital leases
Enterprise funds:
Waterworks revenue
bonds
$ 23,455,000
9,550,000
290,000
245,000
23,165,000
9,305,000
1.722.108
34,727,108
482.000
35.209.108
167.353
702,353
157.000
859.353
1.554.755
34,024,755
325.000
34.349.755
64
(Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(11) Long-term Debtt Continued
Long-term debt at June 30, 1989 is comprised of the following individual
issues:
Balance
June 30. 1989
General Lone Term Debt:
1962 Series B General Obligation Sewer Bonds,
principal due in amounts ranging from $90,000 to
$100,000 on July 1 of each year through 1991,
interest payable on January 1 and July 1 at 3.6%
per annum $ 280,000
1962 Series C General Obligation Sewer Bonds,
principal due in amounts of $25,000 on July 1 of
each year through 1991, interest payable on
January 1 and July 1 at 3.75% per annum 75,000
1966 Library General Obligation Bonds, principal due
in amounts ranging from $20,000 to $25,000 on
January 1 of each year through 1992, interest
payable on January 1 and July 1 at 4.5% per annum 65.QQQ
General obligation bonds 420,000
1967 Carlsbad Building Authority Revenue Bonds,
principal due in amounts ranging from $25,000 to
$35,000 on December 15 of each year through 1992,
interest payable on December 15 and June 15 at
6.0% per annum 120,000
1969 Carlsbad Parking Authority Revenue Bonds,
principal due in amounts ranging from $75,000 to
$125,000 on October 1 of each year through 1995,
interest payable on October 1 and April 1 at rates
varying from 6.35% to 6.4% per annum 725,000
(Continued)
65
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(11) Long-term Debt. Continued
Balance
June 30. 1989
1981 Carlsbad Parking Authority Revenue Bonds,
principal due in amounts ranging from $60,000 to
$150,000 on February 1 of each year through 2001,
interest payable on August 1 and February 1 at
8.0% per annum 1.210rQOO
Parking and building authorities
revenue bonds 2.055.000
1988 Carlsbad Certificates of Participation,
principal due in amounts ranging from $115,000 to
$815,000 on August 1 of each year through 2009,
interest payable on August 1 and February 1 at
rates varying from 5.50% to 7.6% per annum 8,690,000
1988 Carlsbad Housing and Redevelopment Commission
Tax Allocation Bonds, principal due in amounts
ranging from $255,000 to $595,000 on April 1 of
each year through 2003, a principal payment of
$2,890,000 on April 1, 2007, and a principal
payment of $3,950,000 on April 1, 2011, interest
payable on October 1 and April 1 at rates varying
from 5.5% to 7.8% per annum 12.000.000
Total Bonds and Notes Payable 23,165,000
1986 College Boulevard Assessment District Bonds,
principal due in amounts ranging from $260,000 to
$910,000 on September 2 of each year through 2006,
interest payable on September 2 and March 2 at
rates varying from 6.75% to 8.0% per annum 9,305,000
Capital leases (note 9) 1.554.755
Total General Long-term Debt $ 34.024.755
(Continued)
66
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(11) Long-term Debt. Continued
Balance
June 30. 1989
Enterprise Fund Long—Term Debti
1960 Waterworks Revenue Bonds, principal due in
amounts ranging from $60,000 to $65,000 on July 1
of each year through 1990, interest payable on
January 1 and July 1 of each year at rates varying
from 3.875% to 4.0% per annum $ 125,000
1970 Waterworks Revenue Bonds, principal due in the
amount of $100,000 on July 1 of each year through
1990, interest payable on January 1 and July 1 of
each year at the rate of 6.0% per annum 200.000
325,000
Less unamortized discount (1,234)
Less current portion (160.000)
Total enterprise fund long-term debt $ 163.766
Reserve funds of approximately $3,000,000 are required to be held in debt
service funds to secure the payment of principal and interest on the
outstanding debt issues.
The Tax Allocation Bonds maturing April 1, 2007 and 2011 are subject to
mandatory redemption in part from sinking fund payments which commence
on April 1, 2004. These sinking fund payments have been included in
the debt service requirements which follow.
(Continued)
67
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(11) Long-term Debt. Continued
Debt service requirements to maturity for general long-term debt are as
follows:
Parking and
Building
General Authorities Certificates
Obligation Revenue of
Bonds
1990 $ 148,728
1991 143,652
1992 153,393
1993
1994
1995-1999
2000-2004
2005-2009
Thereafter -
445,773
Less amounts
representing
interest 25.773
Total general
1 ong-term
debt $ 420.000
Bonds
307,231
340,200
326,000
316,650
293,200
1,064,000
309,000
-_
2,956,281
901.281
2.055.000
Participation
759,567
870,085
871,435
866,448
865,054
4,314,266
4,281,360
4,251,200_
17,079,415
8.389.415
8.690.000
Debt service requirements to maturity for
follows:
1990
1991
Less amounts representing interest
Total enterprise fund debt
Tax Assessment
Allocation District
Bonds Bonds Total
877,352 974,455 3,067,333
1,132,352 975,880 3,462,169
1,133,328 975,430 3,459,586
1,137,938 973,180 3,294,216
1,135,828 973,815 3,267,897
5,740,522 4,840,713 15,959,501
5,818,676 4,795,672 15,204,708
5,893,370 2,849,600 12,994,170
2.382.330 - 2.382.330
25,251,696 17,358,745 63,091,910
13.251.696 8.053.745 30.621.910
12.000.000 9.305.000 32.470.000
the enterprise funds are as
Waterworks
Revenue
Bonds
$ 172,718
169.259
341,977
16.977
* 325.000
68
(Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(11) Long-term Debt. Continued
The College Boulevard Assessment District Bonds were issued under the
provisions of the Improvement Bond Act of 1915. The bonds were issued
to finance public infrastructure improvements project on College
Boulevard. If a delinquency occurs in the payment of the assessment
installments, the City, at the end of the fiscal year of delinquency,
has a duty to transfer to the debt service fund the amount of the
delinquency out of available funds of the City. Available funds
consist of any surplus funds of the City not required for lawful
municipal obligations. This duty of the City is continuing during the
period of delinquency, until reinstatement, redemption or sale of the
delinquent property. Even though neither the faith and credit nor the
taxing power of the City is pledged to the payment of the bonds, the
City is obligated in the manner stated above. Accordingly these bonds
have been recorded in the general long-term debt account group of the
City.
(12) Advances To and From Other Funds
The following table shows amounts advanced from funds in the City to
other funds within the City at June 30, 1989:-
Advances to:
Public
Facilities
Construction Redevelopment
Fund Fund Total
Advances from:
General Fund $ - 2,044,787 2,044,787
Capital Construction Fund 950,OOP 3,807.352 4.757.352
Total $ 950.000 5.852.139 6.802.139
(Continued)
69
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(13) Due To and From Other Funds
The following table shows amounts due from funds in the City to other
funds within the City at June 30, 1989:
Due To;
Due from:
Capital Projects Funds:
Federal Grant
Community Development
Block Grant
General Fund
$ 664,000
68,138
Enterorise
Water Utility Sewer
Fund Fund
Enterprise Funds:
Water Utility
Sewer Fund
Total $ 732.138
96,306
10.017 -
10.017 96.306
70
(Continued)
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(14) Fund Balances/Retained Earnings
The following is a summary of reserved and unreserved fund balances and
retained earnings as of June 30, 1989:
Governmental Fund Types
Fund
Reserved for:
Loans receivable
Prepaid expenses
Inventory
Debt service
Advances to other
funds
Subsequent
expenditures
Encumbrances
Unreserved:
Designated for
approved capital
projects
Undesignated
General
36,000
35,428
2,044,787
131,000
535.407
2.782.622
Special
Revenue
184,839
113,858
Debt
Service
Capital
Projects
4,742,763
733,587
56.353
1.088.637 4.742.763
Total fund
balances
4,844,529
5.789.454
10.633.983
$ 13.416.605
1.338.741
1.338.741
3,306,477
4,757,352
6.827.898
14.891.727
14,805,262
(1.003.595)
13.801.667
2.427.378 4.742.763 28.693.394
Proprietary Fund Types
Internal
Service
Reserved for debt service
Unreserved - undesignated
Total retained earnings
Enterprise
$ 175,259
26.896.814
$ 27.072.073
1.276.614
1.276.614
Reserves for loans receivable, prepaid expenses, inventory, subsequent
expenditures and advances to other funds are established to show that
certain assets are already committed to other purposes and are not
available for discretionary expenditures.
(Continued)
71
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(14) Fyuid. ^lances/Retained Earnings. Continued
Reserves for encumbrances represent commitments related to unperformed
contracts for services and undelivered goods.
Reserves for debt service represent resources legally restricted to the
payment of general long-term debt principal and interest maturing in
future years.
Unreserved-undesignated represents the fund balance or retained earnings
remaining after reduction for reserved and designated fund balances or
retained earnings.
As of June 30, 1989, the funds with a deficit in fund balance/retained
earnings were:
Fund Deficit
Capital projects:
Federal Grants $ 873,905
Redevelopment Project 4,056,180
Internal service:
General Liability Self-Insurance 28,914
The City expects that the deficit in Federal Grants will be funded
through future grant monies or transfers from the General Fund and the
Redevelopment Project deficit will be funded by property tax increments
to be received in the future.
The deficit in the General Liability Self-Insurance Fund will be
eliminated through increased premiums charged to other funds.
Also, the following funds had an excess of expenditures (on a budgetary
basis) over appropriations:
Special revenue:
Senior Nutrition $ 94
Debt service:
Library Bonds 1,462
Sewer Bonds 6,447
(Continued)
72
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(15) Changes in Contributed Capital
Contributed capital, July 1, 1988
Additions:
Cash
Fixed assets
Contributed capital, June 30, 1989
(16) Segment Information for Enterprise Funds
Enterprise
Funds
$ 15,466,067
785,866
$ 16.251.933
Internal
Service
Funds
2,216,839
626.162
2.843.001
The City maintains two enterprise funds that provide water and sewer
services. Segment information for the year ended June 30, 1989, is as
follows:
Water Total
Utility Sewer Enterprise
Fund Fund
Operating revenues
Operating expenses:
Depreciation and
amortization
Other
Operating income (loss)
Non-operating income, net
Net income
Capital contributions:
Beginning balance
Current year additions
Ending balance
1,407,030 2,138,465 3,545,495
121,732
1.074.090
211,208
331.861
543.069
2,425,080
488,990
1.865.484
(216,009)
794.244
578.235
13,040,987
785.866
610,722
2.939.574
(4,801)
1.126.105
1.121.304
15,466,067
785.866
2.425.080 13.826.853 16.251.933
(Continued)
73
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(16) Segment Information for Enterprise Funds. Continued
Water Total
Utility Sewer Enterprise
Fund Fund Funds
Property, plant and
equipment (at cost):
Additions $ 24,613 1,311,774 1,336,387
Deletions 771 108.234 109.005
Net working capital $ 736.164 12.422.786 13.158.950
Bonds:
Payable from operating
revenues 163,766 - 163,766
Payable from other sources 161.234 - 161,234
$ 325.000 - 325.000
Total ass-ets $ 10,154,811 37,190,175 47,344,986
Total liabilities 1.725.088 2.295.892 4.020.980
Total equity $ 8.429.723 34.894.283 43.324.006
(17) Assessment District Bond Issues
As of June 30, 1989, the City had three series of Assessment District
Bonds outstanding in the amount of $5,544,904. These bonds were issued
under the provisions of the Improvement Bond Act of 1911 and 1915 and
were used to finance public infrastructure improvement projects.
For the bond issuances noted above, the City is not obligated in any
manner for the payment of debt service in the event of default by the
property owners but is only acting as agent for the property owners in
collecting the assessments, forwarding the collections to bondholders,
and initiating foreclosure proceedings, if appropriate. Accordingly,
no liability for these bond issuances has been recorded in the General
Long-Term Debt Account Group and all debt service transactions have
been recorded in an Agency fund.
(Continued)
74
CITY OF CARLSBAD
Notes to Combined Financial Statements, Continued
(18) Contingencies
(a) Single Family Mortgage Revenue Bonds have been issued to provide
funds to purchase mortgage loans secured by first trust deeds on
newly-constructed and existing single-family residences. The
purpose of this program is to provide low interest rate home
mortgage loans to persons of low or moderate income who are unable
to qualify for conventional mortgages at market rates.
Multi-Family Housing Revenue Bonds are issued to provide
construction and permanent financing to developers of multi-family
residential rental projects located in the City to be partially
occupied by persons of low or moderate income.
The balance of the revenue bonds outstanding under this program as of
June 30, 1989 is $51,751,941.
The bonds, together with interest thereon, are limited obligations of
the City payable solely from bond proceeds, revenues and other
amounts derived solely from home mortgage and "developer loans
secured by first deed of trust, irrevocable letters of credit, and
irrevocable surety bonds. In the opinion of City officials, these
bonds are not payable from any revenues or assets of the City, and
neither the full faith and credit nor the taxing power of the City
of Carlsbad, the state of California, nor any political
sub-division thereof, is obligated to the payment of the principal
or interest on the bonds. Accordingly, no liability has been
recorded in the General Long-Term Debt Account Group.
(b) 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.
(19) Subsequent Event
In July 1989, the San Diego County Board of Supervisors approved the
establishment of the Carlsbad Municipal Water District (formerly known
as the Costa Real Municipal Water District) as a subsidiary of the City
of Carlsbad. The Local Agency Formation Commission approved the change
of organization in June 1989.
The effective date of the merger is January 1, 1990. Until then, the
City and the Carlsbad Municipal Water District (Water District)
continue to function as separate entities for reporting purposes.
Therefore, the financial transactions of the Water District are not
included in the financial statements of the City for the year ended
June 30, 1988.
75
i «iRv, )'i!
mmmiy» 1 W1''] V/'V,'/O/;-1'(,\'1' i'<,'i"iM /!,
GENERAL FOND
To account for all financial transactions not accounted for in other funds.
The majority of current operating expenditures of the City other than property
funds are financed through revenues received by the General Fund.
77
CITY OF CARLSBAD
General Fund
Schedule of Revenues - Budget and Actual
(Budgetary Basis)
For the year ended June 30, 1989
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
Charges for services:
Engineering fees
Plan checking fees
Zoning and subdivision fees
Sales of maps and publications
Library and parks and
recreation fees
Police service fees
Ambulance fees
Environmental impact studies
Other
Total charges for
services
Totals, carried forward
Budget
9,866,000
235,000
8,000,000
2,870,000
650,000
350,000
176,000
20.000
22.167.000
1,900,000
500,000
650,000
1,000,000'
160.000
4. 210. 000
1,045,000
700,000
100,000
56,402
544,578
29,162
200,000
21,991
114.867
2.812.000
29.189.000
Actual on
Budgetary
Basis
10,037,336
276,873
8,186,215
2,752,025
599,445
570,244
166,216
26.608
22.614.962
2,032,657
674,814
696,706
1,111,849
38.853
4.554.879
1,609,561
1,212,287
132,120
54,642
621,842
28,252
219,030
21,305
125.254
4.024.293
31.194.134
Variance
Favorable
(Unfavorable)
171,336
41,873
186,215
(117,975)
(50,555)
220,244
(9,784)
6.608
447.962
132,657
174,814
46 , 706
111,849
(121.147)
344.879
564,561
512,287
32,120
(1,760)
77,264
(910)
19,030
(686)
10.387
1.212.293
2.005.134
78
Budget
Actual on
Budgetary
Basis
Variance
Favorable
(Unfavorable1
Totals, brought forward
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
$ 29.189.000 31.194.134 2.005.134
393,000
393.000
1.000.OOP
248,855
961
28,195
427.989
706.000
$ 31.288.000
477,172
1.658
478.830
2.087.490
1,045,848
4,039
118,514
1.618.079
2.786.480
36.546.934
84,172
1.658
85.830
1.087.490
796,993
3,078
90,319
1.190.090 '
2.080.480
5.258.934
79
CITY OF CARLSBAD
General Fund
Schedule of Expenditures - Budget and Actual
(Budgetary Basis)
For the year ended June 30, 1989
Budget
Actual on
Budgetary
Basis
Variance
Favorable
(Unfavorable)
General government:
City council
City manager
City clerk
Research/analysis group
City attorney
Finance
City treasurer
Information systems
Purchasing
Insurance
Personnel
Planning
Community promotion
Senior citizens programs
Community assistance
Weed abatement
Capital improvement
Building maintenance
Lease
Development processing
service
Community development
Contingency
Other
Total general government
Public safety:
Fire protection
Police protection
Building inspection
Civil defense
Total public safety
Totals, carried forward
141,802
454,531
121,665
225,939
278,660
938,317
43,817
407,899
312,074
207,164
489,353
1,387,878
202,000
203,997
57,500
65,955
126,865
667,082
287,600
445,153
401,539
255,013
563.600
124,474
421,848
78,062
172,228
266,167
880,830
43,752
355,470
294,761
166,829
486,141
1,098,304
200,089
172,199
57,500
27,297
92,339
632,214
70,000
316,301
361,497
—825.881
17,328
32,683
43,603
53,711
12,493
57,487
65
52,429
17,313
40,335
3,212
289,574
1,911
31,798
-
38,658
34,526
34,868
217,600
128,852
40,042
255,013
(262.281)
8.285.403
4,634,694
6,452,156
816,591
126.916
12.030.357
20.315.760
7.144.183
4,522,167
6,304,763
856,412
115.602
11.798.944
18.943.127
1.141.220
112,527
147,393
(39,821)
11.314
231.413
1.372.633
80
Totals, brought forward
Public works:
Engineering
Streets
Maintenance
Total public works
Culture and recreation:
Parks and recreation
Library
Civic arts
Total culture and
recreation
Total expenditures
Budget
7.186.513
Actual on
Budgetary
Basis
$ 20.315.760 18.943.127
2,606,351 2,708,245
3,854,806 2,762,469
725.356 485.932
5.956.646
3,516,438 3,433,139
1,968,806 1,960,102
188.525 178.677
5.673.769 5.571.918
$ 33.176.042 30.471.691
Variance
Favorable
(Unfavorable)
1.372.633
(101,894)
1,092,337
239.424
1.229.867
83,299
8,704
9.848
101.851
2.704.351
81
SPECIAL REVENUE FUNDS
Civic Arts Program
To account for transfers from the Capital Construction Fund to support the
civic arts program.
Community Development Block Grant
To account for federal block grant for community development.
Library Audio Visual Insurance
To account for revenues and expenditures on rental of audio-visual material.
Low and Moderate Income Housing
To account for money administered by the Carlsbad Redevelopment Agency for
designated low and moderate income housing.
Mortgage Revenue Bonds
To account for money available to the City for expenditures incurred due to
Mortgage Revenue Bonds.
Police Asset Forfeiture
To account for money received by the City under a federal program distributing
property confiscated from illegal activities.
Section 8 Housing Authority
To account for federal grants for low and moderate income housing supplemental
payments.
Senior Nutrition
To account for money received and expenditures for senior programs under the
Older Americans Act.
82
State Grants
To account for state of California grants including Library Literacy, CLSA and
Department of Transportation grants.
Street Lighting
To account for revenues and expenditures from property tax assessments for
street lighting.
83
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30, 1989
Assets
Cash and investments
Receivables:
Loan
Taxes
Accounts
Accrued interest
Due from other governments
Prepaid expenses
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Accrued wages payable
Due to other governments
Deferred revenue
Total liabilities
Fund balance:
Reserved for loan receivable
Reserved for prepaid expenses
Reserved for subsequent expenditures
Reserved for encumbrances
Unreserved - undesignated
Total fund balance
Total liabilities and fund balance
Civic
Arts
Program
$ 126,194
1,300
$ 127.494
24,691
102.803
127.494
$ 127.494
84
Community
Development
Block
Grant
461,903
37,113
Library
Audio
Visual
Insurance
107,238
1,104
Low and
Moderate
Income
Housing
686,617
147,726
76,691
7,074
Mortgage
Revenue
Bonds
42,952
442
499.016 108.342 918.108 43.394
530
_53Q
44.706
44.706
37,113
461.903
499.016
499.016
967
106.845
107.812
108.342
147,726
725,676
873.402
918.108
43.394
43.394
43.394
85 (Continued)
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet, Continued
June 30, 1989
Police
Asset
Assets Forfeiture
Cash and investments $ 27,748
Receivables:
Loan
Taxes
Accounts -
Accrued interest 286
Due from other governments -
Prepaid expenses -
Total assets $ 28.034
Liabilities and Fund Balance
Liabilities:
Accounts payable 1,465
Accrued wages payable
Due to other governments
Deferred revenue -
Total liabilities 1.465
Fund balance:
Reserved for loan receivable —
Reserved for prepaid expenses -
Reserved for subsequent expenditures -
Reserved for encumbrances 7,470
Unreserved - undesignated 19.099
Total fund balance 26.569
Total liabilities and fund balance $ 28.034
86
Section 8
Housing
Authority
17,243
17,483
70,615
113.858
219.199
Senior
Nutrition
6,648
454
15,404
State
Grants
342,714
22.506
3,546
1,900
348.160
Street
Lighting
297,096
8,507
638
3,061
309.302
Total
2,116,353
184,839
85,198
18,575
16,813
87,919
113.858
2.623.555
4,025
9,731
72,933
86.689
113,858
7,911
10,741
132.510
219.199
11,917
1,035
12.952
983
8.571
9T554
22.506
9,963
6,069
16.032
3,971
328.157
222*123.
3.48,1^0
23,227
10,576
33.803
7,530
267.969
275.499
309.302
51,127
27,411
72,933
44.706
196.177
184,839
113,858
733,587
56,353
1.338.741
2.427.378
2.623.555
87
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance
For the year ended June 30, 1989
Civic
Arts
Prozram
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
Expenditures:
General government
Public works
Welfare
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Fund balance at beginning of year
Residual equity transfers
Fund balance at end of year
10,184
10.184
83.721
83.721
(73,537)
201,031
$ 127.494
88
Community
Development
Block
Grant
Library
Audio
Visual
Insurance
Low and
Moderate
Income
Housing
Mortgage
Revenue
Bonds
60,000
23,379
83.379
65,494
7,501
72.995
213,239
42,350
255.589
80,435
80.435
62.365
62.365
83,379
415,637
10,630
97,182
255,589
617,813
499.016 107.812 873.402
80,435
40,535
(77.576)
43.394
89 (Continued)
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance, Continued
For the year ended June 30, 1989
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
Expenditures:
General government
Public works
Welfare
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Fund balance at beginning of year
Residual equity transfers
Fund balance at end of year
Police
Asset
Forfeiture
3,846
83.551
87.397
99,476
26.569
90
Section 8
Housing
Authority
Senior
Nutrition
State
Grants
Street
Liehtine latal
1,468,781
5,107
1.473.888
95,020
49.980
145.000
212,187
23,071
235.258
540,511
14,764
35.635
590.910
753,750
1,835,988
65,494
210,637
169.166
3.035.035
1
1
,469
,469
4
128
,477
.477
,411
,099
144,538
144.538
462
9,092
176
176
59
271
1
.009
.009
,249
,251
.628
584
584
6
269
,607
.607
,303
,196
99
584
1,614
322
2.620
414
2,088
(75
,476
,607
,015
.095
.193
,842
,484
,948)
132.510 9.554 332.128 275.499 2.427.378
91
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures
Budget and Actual
(Budgetary Basis)
For the year ended June 30, 1989
Civic Arts Program
Budget
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
Expenditures:
General government
Public works
Welfare
Culture and recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
10,000
10.000
151.264
151.264
* (141.264)
Actual on
Budgetary
Basis
10,184
10.184
108.412
108.412
(98.228)
Variance
Favorable
(Unfavorable)
184
184
42.852
42.852
43.036
92
Community Development
Block Grant
Budget
Library Audio Visual Insurance
Actual on Variance
Budgetary Favorable
Basis (Unfavorable) Budget
Actual on Variance
Budgetary Favorable
(Unfavorable)
60,100
60.100
60,000
23,379
83.379
(100)
23,379
23.279
60,000
5,000
65.000
65,494
7,501
72.995
5,494
2,501
7.995
64.101
64.101
63.332
63.332
769
769
60.100 83.379 23.279 899 9.663 8.764
93 (Continued)
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures
Budget and Actual, Continued
(Budgetary Basis)
For the year ended June 30, 1989
Low and Moderate
Income Housing
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
Expenditures:
General government
Public works
Welfare
Culture and recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
Budget
$ 200,000
40,000
240.000
Actual on
Budgetary
Basis
213,239
42,350
255.589
$ 240.000 255.589
Variance
Favorable
(Unfavorable)
13,239
2,350
15.589
15.589
94
Mortgage Revenue Bonds Police Asset Forfeiture
Actual on
Budgetary
Budget Basis
80,435
80.435
Variance
Favorable
(Unfavorable )
80,435
80.435
Budget
4,000
80.000
84.000
Actual on
Budgetary
Basis
3,846
83.551
87.397
Variance
Favorable
(Unfavorable)
(154)
3.551
3.397
115,424 106,946 8,478
115.424 106.946 8.478
80.435 80.435 (31.424) (19.549)11.875
95 (Continued)
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures
Budget and Actual, Continued
(Budgetary Basis)
For the year ended June 30, 1989
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
Expenditures:
General government
Public works
Welfare
Culture and recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
Budget
Section 8
Housing Authority
Actual on
Budgetary
Basis
1,600,000 1,468,781
3,000 5,107
1.603.OOP 1.473.888
1,651,882 1,480,218
1.651.882 1.480.218
Variance
Favorable
(Unfavorable)
(131,219)
2,107
(129.112)
(48.882)(6.330)
171,664
171.664
42.552
96
Senior Nutrition State Grants
Budget
120,000
50.000
170.000
Actual on
Budgetary
Basis
95,020
49.980
145.000
Variance
Favorable
(Unfavorable )
(24,980)
(20)
(25.000)
Budget
175,000
10,000
185.000
Actual on
Budgetary
Basis
212,187
23,071
235.258
Variance
Favorable
(Unfavorable)
37,187
13,071
50.258
145,427 145,521
145.427
24.573
145.521
(94)
(94)
219.969
219.969
179.980
179.980
(521) (25.094) (34.969) 55.278
39.989
39.989
90.247
97 (Continued)
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures
Budget and Actual, Continued
(Budgetary Basis)
For the year ended June 30, 1989
Street Lighting
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
Expenditures:
General government
Public works
Welfare
Culture and recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
i
Budget
490,000
1,000
8,000
24.000
Actual on
Budgetary
Basis
540,511
14,764
35.635
Variance
Favorable
( Unf avo r ab 1 e )
50,511
(1,000)
6,764
11.635
523.000
684,325
684.325
* (161.325)
590.910
592,137
592.137
(1.227)
67.910
92,188
92.188
160.098
98
Budget
Total
Actual on
Budgetary
Basis
Variance
Favorable
(Unfavorable)
690,000
1,955,100
61,000
80,000
154.000
2.940.1QQ
753,750
1,835,988
65,494
210,637
169.166
3.035.035
63,750
(119,112)
4,494
130,637
15.166
94.935
115,424
684,325
1,797,309
435.334
3.032.392
106,946
592,137
1,625,739
351.724
2.676.546
8,478
92,188
171,570
83.610
355.846
(92.292)358.489 450.781
99
\
DEBT SERVICE FUNDS
Library Bonds
To accumulate property taxes specifically levied for payment of debt service
on the 1966 Library General Obligation Bonds.
Sewer Bonds
To accumulate property taxes specifically levied for payment of debt service
on the 1962 Series B and C Sewer General Obligation Bonds.
Parking Authority
To account for receipts received by the Parking Authority from the General
Fund for payment of debt service on 1969 and 1981 Parking Authority Revenue
Bonds.
Building Authority
To account for receipts received by the Building Authority from the General
Fund for payment of debt service on the 1967 Building Authority Revenue Bonds.-
Hosp Grove OOP's
To account for payment of debt service on the 1988 Certificates of
Participation issued to purchase Hosp Grove.
College Boulevard
To accumulate property assessments levied for payment of debt service on 1986
College Avenue Assessment District Bonds.
Redevelopment Bonds
To account for payment of debt service on 1988 Tax Allocation Bonds issued to
finance improvements for the Carlsbad Redevelopment Agency.
101
CITY OF CARLSBAD
Debt Service Funds
Combining Balance Sheet
June 30, 1989
Assets
Cash and investments
Receivables:
Taxes
Accrued interest
Total assets
Liabilities and Fund Balance
Liabilities:
Interest payable
Deferred revenue
Total liabilities
Fund balance - reserved for debt service.
Total liabilities and fund balance
Library
Bonds
$ 12,511
431
113
$ 13.055
$ 1,463
1,463
Sewer
Bonds
101,536
2,353
979
104.868
$ 13.055
6,446
6,446
98.422
104.868
102
Parking
Authority
899,716
22.155
921.871
Building
Authority
131,389
369
131.758
Hosp Grove
CQP's
950,729
30.379
981.108
College
Boulevard
1,489,688
19.074
1.508.762
Redevelopment
Bonds Total
1,151,444 4,737,013
23.495
1.174.939
2,784
96.564
4.836.361
—
921.871
921.871
36.000
36,000
95.758
131.758
49.689
49,689
981.108 1.459.073
981.108 1.508.762
7,909
85.689
93,598
1.174.939 4.742.763
1.174.939 4.836.361
103
CITY OF CARLSBAD
Debt Service Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance
For the year ended June 30, 1989
Revenues:
Taxes
Interest income
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over expenditures and other
financing uses
Fund balance at beginning of year
Fund balance at end of year
Library
Bonds
$ 21,647
594
22.241
15,000
5.062
20.062
2.179
2,179
9.413
$ 11.592
Sewer
Bonds
116,927
2.629
119.556
115,000
21.403
136.403
(16.847)
(16,847)
115.269
98.422
104
Parking
Authority
77.624
77.624
2,235
135,000
150.344
287.579
(209.955)
(209,955)
1.131.826
921.871
Building
Authority
7,638
7.638
4,294
25,000
7.950
37.244
(29.606)
36,000
36.000
6,394
89r364
95.758
Hosp Grove
OOP's
84.787
84.787
461.409
461.409
(376.622)
327,562
327.562
(49,060)
1.030.168
981.108
College
Boulevard
985,207
75.364
1.060.571
245,000
730.886
975.886
84.685
-
84,685
1.374.388
1.459.073
Redevelopment
Bonds
89.897
89.897
877.353
877.353
(787.456)
814,153
(80.244)
733.909
(53,547)
1.228.486
1.174.939
Total
1,123,781
338.533
1.462.314
6,529
535,000
2.254.407
2.795.936
(1.333.622)
1,177,715
(80.244)
1.097.471
(236,151)
4.978.914
4.742.763
105
CITY OF CARLSBAD
Debt Service Funds
Combining Schedule of Revenues and Expenditures
Budget and Actual (Budgetary Basis)
For the year ended June 30, 1989
Librarv Bonds
Revenues:
Taxes
Interest income
Total revenues
Expenditures:
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
Budget
19,000
100
19.100
15,000
3.600
18.600
500
Actual on
Budgetary
Basis
21,647
594
22.241
15,000
5.062
20.062
2.179
Variance
Favorable
(Unfavorab1e)
2,647
494
3.141
(1.462)
(1.462)
1.679
106
Budget
Sever Bonds
Actual on
Budgetary
Basis
Variance
Favorable
(Unfavorable)Budget
Total
Actual on
Budgetary
Basis
Variance
Favorable
(Unfavorable)
130,000
l.QQQ
131.000
116,927
2.629
119.556
(13,073)
1.629
(11.444)
149,000
1.100
150.100
138,574
3.223
141.797
(10,426)
2.123
(8.303)
115,000
14.956
129.956
1.044
115,000
21.403
136.403
(16.847)
(6.447)
(6.447)
(17.891)
130,000
18.556
148.556
1.544
130,000
26.465
156.465
(14.668)
(7.909)
(7.909)
(16.212)
107
CAPITAL PROJECTS FUNDS
Capital Construction
To account for transfers from the General Fund for various municipal capital
projects.
Public Facilities Construction
To account for receipts of fees charged to developers for specific capital
projects necessitated by growth.
Park Development
To account for receipts of fees charged to developers for park acquisition
and development.
Redevelopment Bond Project
To account for capital projects financed by 1988 Carlsbad Redevelopment
Agency Tax Anticipation Bonds.
Assessment Districts
To account for capital projects financed by issuance of assessment district
bonds.
State Grants
To account for capital projects financed by state grants.
Revenue Sharing
To account for revenue sharing grants from the federal government.
Federal Grants
To account for miscellaneous grants from the federal government, including
Federal Aid Urban and Highway Bridge Repairs and Replacement.
108
Marron Road Improvement
To account for street improvement project financed by 1989 Certificates of
Participation.
Bridge and Thoroughfare
To account for receipt of fees charged to developers in the Bridge and
Thoroughfare district.
Planned Local Drainage Facilities
To account for receipts of fees charged to developers for drainage facilities
necessitated by growth.
Redevelopment Project
To account for financial resources segregated for the rehabilitation of
commercial and public property located with the Carlsbad Village area.
Traffic Impact
To account for receipts of fees charged to developers for street construction
and improvement.
Community Development Block Grant
To account for federal block grants for community development.
Gas Tax
To account for receipts and expenditures of money apportioned under Streets
and Highways Code Section 2106, 2107 and 2107.5 of the state of California.
109
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet
June 30, 1989
Assets
Cash and investments
Receivables:
Taxes
Accounts
Accrued interest
Due from other governments
Advances to other funds
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Accrued wages payable
Due to other funds
Advances from other funds
Deferred revenue
Total liabilities
Fund balance (deficit):
Reserved for debt service
Reserved for advances to
other funds
Reserved for encumbrances
Unreserved:
Designated for approved
capital projects
Undesignated
Total fund balance
(deficit)
Total liabilities and
fund balance
Capital
Construction
$ 2,627,711
302
4.757.352
$ 7.385.365
13,000
13.000
4,757,352
198,480
2,416,533
7.372.365
7.385.365
Public
Facilities
Construction
7,660,047
236,838
77,058
7.973.943
15,336
950,000
965.336
1,122,893
5,531,192
354.522
7.008.607
7.973.943
Park
Development
1,178,442
16,041
1.194.483
110,193
110.193
23,571
87,917
972.802
1.084.290
1.194.483
110
Redevelopment
Bond
Project
7,341,629
Assessment
Districts
2,749,392
State
Grants
586,751
Revenue
Sharing
348,867
Federal
Grants
4,853
160,442
7.502.071
99,026
2.848.418
48,623
8,423
152,050
795.847
3,594
352.461
47
4.900
405,455 561,436 11,227 69 214,805
664,000
405.455 561.436 11.227 69 878.805
3,041,732 878,620 135,896 142,240 864,085
3,549,429
505.455
869,602
538.760
149,235
499.489
210,152
(1.737.990)
7.096.616 2.286.982 784.620 352.392 (873.905)
7.502.071 2.848.418 795.847 352.461 4.900
111
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet, Continued
June 30, 1989
Assets
Cash and investments
Receivables:
Taxes
Accounts
Accrued interest
Due from other governments
Advances to other funds
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Accrued wages payable
Due to other funds
Advances from other funds
Deferred revenue
Total liabilities
\
Fund balance (deficit):
Reserved for debt service
Reserved for advances to other funds
Reserved for encumbrances
Unreserved:
Designated for approved capital
projects
Undesignated
Total fund balance (deficit)
Total liabilities and fund
balance
Marron
Road Bridge and
Imorovement Thoroughfare
* 630,811
$ 630.811
1,089
1.089
A, 229
593,547
31.946
629.722
$ 630.811
19,351
19
19
283,848
735,948
877.767
1.897.563
Planned
Local
Drainage
Facilities
1,878,231 1,832,685
18,883
1.897.582 1.851.568
143,328
1.708.240
1.851.568
1.897.582 1.851.568
112
Redevelopment
Project
1,674,299
306,767
703
29,640
2.011.409
Traffic
Impact
1,977,444
20,373
1.997.817
Community
Development
Block Grant
73,953
73.953
Gas
lax
1,243,124
12,808
1.255.932
Total
31,734,286
306,767
286,466
465,686
226,003
4.757.352
37.776.560
19,770
16,855
5,852,139
178.825
6.067.589
3,306,477
76,449 38,478
242,111
(7.439.106) 1.717.228
(4.056.180) 1.997.817
802
68,138
68.940
14,800
(9.787)
5.013
8
8
2,577
276,268
977.079
1.255.924
1,353,209
16,855
732,138
6,802,139
178.825
9.083.166
3,306,477
4,757,352
6,827,898
14,805,262
(1. 003. 595)
28.693.394
2.011.409 1.997.817 73.953 1.255.932 37.776.560
113
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance
For the year ended June 30, 1989
Capital
Construction
Public
Facilities
Construction
Park
Development
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Contributions from property owners
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Capital outlay
Debt service:
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses
Fund balance (deficit) at
beginning of year
Fund balance (deficit) at
end of year
$
349,802
1.146
350.948
985,530
985.530
(634.582)
692,260
(34.294)
657.966
23,384
7.348.981
7.372.365
2,190,968
517,444
133.145
2.841.557
6,333,806
6.333.806
(3.492.249)
10.500.856
7.008.607
71,139
139,477
210.616
1,979,675
1.979.675
(1.769.059)
(3,492,249) (1,769,059)
2.853.349
1.084.290
114
Redevelopment
Bond
Project
Assessment
Districts
State
Grants
Revenue
Sharing
Federal
Grants
787,997
787.997
381,584
4,529,710
4.911.294
790,878
57,991
53.801
902.670
29,693
29.693
4,485
312
4.797
22,875
3,106,725
7.755
3.137.355
(2.349.358)
(557.567)
(557.567)
3,569,327
3.569.327
1.341.967
25,294
25.294
528,056
528.056
374.614
9,000
9.000
224,797
224.797
(195.104)
819,805
819.805
(815.008)
(2,906,925)
10.003.541
7.096.616
1,367,261
919.721
2.286.982
383,614
401.006
784.620
(195,104)
547.496
352.392
(815,008)
(58.897)
(873.905)
115
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance, Continued
For the year ended June 30, 1989
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Contributions from property owners
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Capital outlay
Debt service:
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses
Fund balance (deficit) at
beginning of year
Fund balance at end of year
Marron
Road Bridge and
Improvement Thoroughfare
51,321
51.321
52,224
(19.375)
(19.375)
(20,278)
395,743
126,373
522.116
170,387
351,729
Planned
Local
Drainage
Facilities
50,975
128,415
179.390
163,627
52.224 170.387 163.627
(903) 351.729 15.763
15,763
650.000 1.545.834 1.835.805
629.722 1.897.563 1.851.568
116
Redevelopment
Project
852,952
233,533
14.429
1.100.914
1,305,512
535.692
1.841.204
(740.290)
278,017
(454.359)
(176.342)
Traffic
Impact
383,445
139,636
523.081
144,964
144.964
378.117
-
Community
Development
Block Grant
245,185
128
245.313
39,550
200,750
240.300
5.013
-
Gas
lax
794,528
64,507
859.035
201,539
201.539
657.496
-
Total
1,647,480
1,040,548
3,092,270
3,008,213
4,529,710
202.521
13.520.742
62,425
19,786,724
543.447
20.392.596
(6.871.854)
1,004,571
(1.065.595)
(61.024)
(916,632)
(3.139.548)
(4.056.180)
378,117
1.619.700
1.997.817
5,013
5.013
657,496
598.428
1.255.924
(6,932,878)
35.626.272
28.693.394
117
Flowers proved to be a more successful crop than the
eucalyptus trees. Gladioli have been grown in Carlsbad since
1921. Ranunculus bulbs were imported from Turkey. The first
field of the bright, beautiful flowers was planted at Tamarack and
Jefferson Streets in 1926. Birds of Paradise were first planted in
the fifties. The orange and blue flowers resemble exotic birds in
flight. Flowers became such an important symbol for Carlsbad
that the city logo has a "bird."
118
FDND
Water Utility
To account for the operation and maintenance of the City's water system and
the payment of debt service on the 1958, 1960 and 1970 Waterworks revenue
bonds.
Sewer
To account for the operation and maintenance of the City's sewer system.
119
CITY OF CARLSBAD
Enterprise Funds
Combining Balance Sheet
June 30, 1989
Assets
Cash and investments
Receivables:
Accounts
Accrued interest
Due from other funds
Inventory, at cost
Total current assets
Restricted assets:
Cash and investments
Accrued interest
Total restricted assets
Property, plant and equipment:
Land and water rights
Buildings and improvements
Wells, reservoirs and dams
Transmission and distribution
lines
Sewers, sewer lines and wells
Sewage treatment facility
Equipment and vehicles
Construction in progress
Less accumulated
depreciation
Property, plant and
equipment, net
Total assets
Water
Utility
1,724,168
2,470
10,017
152.487
2.297.486
4,396,934
45.302
4.442.236
231,956
37,188
1,212,852
4,023,869
228,174
5,734,039
(2.318.950)
Sewer
12,410,316
1,922
127,863
96,306
11.493
227,250
37,948
8,244,810
19,199,083
407,120
403.431
Total
12,818,660
1,726,090
130,333
106,323
163.980
12.647.900 14.945.386
4,396,934
45.302
4.442.236
459,206
75,136
1,212,852
4,023,869
8,244,810
19,199,083
635,294
403.431
28,519,642 34,253,681
(3.977.367) (6.296.317)
3.415.089 24.542.275 27.957.364
$ 10.154.811 37.190.175 47.344.986
120
Liabilities
Current liabilities:
Accounts payable
Accrued wages payable
Due to other funds
Deposits payable
Current portion of revenue
bonds payable
Total current liabilities
Long-term liabilities:
Revenue bonds payable
Deferred revenue
Total liabilities
Fund Equity
Contributed capital
Retained earnings:
Reserved for debt service
Unreserved - undesignated
Total retained earnings
Total fund equity
Total liabilities and fund
equity
Water
Utility
1,561,322
163,766
1.725.088
2.425.080
Sewer
2.070.778
2.295.892
Total
*1,216,216
22,849
96,306
65,951
160.000
198,735
16,362
10,017
_
1,414,951
39,211
106,323
65,951
160.000
225,114 1,786,436
163,766
2.070.778
4.020.980
13.826.853 16.251.933
175,259
5.829.384
6.004.643
8.429.723
21.067.430
21.067.430
34.894.283
175,259
26.896.814
27.072.073
43.324.006
10.154.811 37.190.175 47.344.986
121
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in
Retained Earnings
For the year ended June 30, 1989
Operating revenues:
Metered water sales
Sewer services charges
Other charges for services
Miscellaneous
Total operating revenues
Operating expenses:
Personnel services
Office expenses
Repairs and maintenance
Professional services
Insurance
Purchased water
Depreciation and amortization
Total operating expenses
Operating income (loss)
Non-operating revenue (expenses):
Interest income
Interest expense and fiscal agent fees
Loss on sale of property
Non-operating income
Net income
Retained earnings at beginning of year
Prior period adjustment
Retained earnings at beginning of year,
as adjusted
Retained earnings at end of year
Water
Utility
$ 1,114,737
260,454
31.839
1.407.030
692,679
205,538
154,415
10,303
7,330
3,825
121.732
1.195.822
211.208
353,072
(21,211)
331.861
543.069
5,461,574
5.461.574
$ 6.004.643
Sewer Total
2,096,997
15,517
25.951
2.138.465
530,948
55,695
154,275
1,111,834
12,732
488.990
2.354.474
(216.009)
839,345
(45.101)
794.244
578.235
21,484,670
(995.475)
20.489.195
21.067.430
1,114,737
2,096,997
275,971
57.790
3.545.495
1,223,627
261,233
308,690
1,122,137
20,062
3,825
610.722
3.550.296
(4.801)
1,192,417
(21,211)
(45.101)
1.126.105
1.121.304
26,946,244
(995.475)
25.950.769
27.072.073
122
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Changes in Financial Position
For the year ended June 30, 1989
Water
Utility Sewer Total
Sources of working capital:
Operations:
Net income $ 543,069 578,235 1,121,304
Items not requiring working capital:
Depreciation and amortization 121,732 488,990 610,722
Loss on disposal of property,
plant and equipment - 45.101 45.101
Working capital provided by
operations 664,801 1,112,326 1,777,127
Increase in contributed capital - 785.866 785.866
Total sources of working capital 664.801 1.898,.192 2.562.993
Uses of working capital:
Acquisitions of property, plant
and equipment 24,613 1,311,774 1,336,387
Current portion and repayment
of revenue bonds payable 160,000 - 160,000
Increase in restricted assets 298.353 - 298,353
Total uses of working capital 482.966 1.311.774 1.794.740
Net increase in working capital $ 181.835 586.418 768.253
Elements of net increase (decrease)
in unrestricted working capital:
Cash and investments (484,873) 938,616 453,743
Accounts receivable 196,629 (157,958) 38,671
Accrued interest receivable (13,238) (18,336) (31,574)
Due from other funds (1,257) 7,966 6,709
Inventory (4,196) (2,529) (6,725)
Accounts payable 499,188 (177,900) 321,288
Accrued wages payable 5,378 (4,698) 680
Due to other funds (7,966) 1,257 (6,709)
Deposits payable (4,830) - (4,830)
Current portion of revenue bonds
payable (3.000) - (3.000)
Net increase in working capital $ 181.835 586.418 768.253
123
INTERNAL SERVICE FUNDS
Workers' Compensation
To account for charges to other funds to insure against Workers' Compensation
claims.
General Liability Self-Insurance
To account for charges to other funds to insure against liability claims
against the City.
Central Garage
To account for charges to other funds to provide fleet maintenance and
replacement.
Health Insurance
To account for charges to other funds and from employees to provide health
insurance for full-time City employees.
Data Processing
To account for charges to other funds for data processing services.
125
CITY OF CARLSBAD
Internal Service Funds
Combining Balance Sheet
June 30, 1989
Assets
Current assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Total current assets
Property, plant 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
Contributed capital - Contributed
from other funds
Workers'
Compensation
$ 1,331,838
13.780
1.345.618
1.345.618
671.233
671.233
500,000
Retained earnings (deficit) - unreserved
Total fund equity
Total liabilities and fund
equity
174.385
674.385
1.345.618
126
General
Liability
Self-
Insurance
2,747,851
28.311
2.776.162
-
2.776.162
48,664
1.906.412
1.955.076
850,000
(28.914)
821.086
Central
Garage
250,649
7,486
3.610
261.745
2,533,467
(1.112.150)
1.421.317
1.683.062
56,101
3,840
59.941
1,416,217
206 . 904
1.623.121
Health
Insurance
605,665
1,111
6.240
613.016
-
61?. 016
24,792
24.792
588.224
588.224
Data
Processing
204,885
676
2.110
207.671
294,304
(69.310)
224.994
'432.665
17,700
2,166
19.866
76,784
336.015
412.799
laial
5,140,888
9,273
54.051
5.204.212
2,827,771
(1.181.460)
1.646.311
6.850.523
147,257
6,006
2.577.645
2.730.908
2,843,001
1.276.614
4.119.615
2.776.162 1.683.062 613.016 432.665 6.850.523
127
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Revenues, Expenses, and
Changes in Retained Earnings
For the year ended June 30, 1989
Operating revenue:
Charges for services
Miscellaneous
Total operating revenue
Operating expenses:
Personnel services
Office expense
Repairs and maintenance
Professional services
Depreciation
Fuel
Supplies and parts
Claims expense
Total operating expenses
Operating income (loss)
Non-operating revenues:
Interest income
Loss on disposal of property
Total non-operating income
Net income (loss) before operating transfers
Operating transfers in
Operating transfers out
Net income (loss)
Retained earnings (deficit) at beginning of year
Retained earnings at end of year
Workers'
Compensation
$ 156,367
38.466
194.833
467.673
467.673
(272.840)
118,779
118.779
(154,061)
(500.000)
(654,061)
828.446
$ 174.385
128
General
Liability
Self-
Insurance
645,937
5.356
651.293
1.317.118
1.317.118
(665.825)
157,252
157.252
(508,573)
500,000
(8,573)
(20.341)
(28.914)
Central
Garage
1,410,601
36.659
1.447.260
250,798
331,228
106,911
16,225
310,827
220,399
138,326
1.374.714
72.546
20,421
(47.323)
(26.902)
45,644
(42.552)
3,092
203.812
206.904
Health
Insurance
1,214,009
236.918
1.450.927
1.207.949
1.207.949
242.978
31,851
31.851
274,829
274,829
313.395
588.224
Data
Processine
451,725
15r811
467.536
136,407
199,713
67,156
9,658
26,645
439.579
27.957
13,188
(15.544)
(2.356)
25,601
42,552
68,153
267.862
336,915
Total
3,878,639
333.210
4.211.849
387,205
530,941
174,067
25,883
337,472
220,399
138,326
2.992.740
4.807.033
(595.184)
341,491
(62.867)
278.624
(316,560)
542,552
(542.552)
(316,560)
1.593.174
1,276. 614
129
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Changes in Financial Position
For the year ended June 30, 1989
Sources of working capital:
Operations:
Net income (loss)
Items not requiring working capital:
Depreciation
Loss on disposal of property, plant and equipment
Working capital provided (used) by operations
Contributions from other funds
Total sources (uses) of working capital
Uses of working capital:
Acquisitions of property, plant and equipment
Contributions to other funds
Total uses
Net increase (decrease) in working capital
Elements of net increase (decrease) in
working capital:
Cash and investments
Accounts receivable
Accrued interest receivable
Accounts payable
Accrued wages payable
Estimated claims payable
Net increase (decrease) in working
capital
Workers'
Compensation
$ (654,061)
(654,061)
(654.061)
(654.061)
(395,518)
(7,659)
328
$ (654.061)
130
General
Liability
Self
Insurance
Central
Garaee
Health
Insurance
Data
Processing Total
(8,573)
(8,573)
(8.573)
3,092
310,827
47.323
361,242
635.240
996.482
274,829
274,829
274.892
68,153
26,645
15.544
110,342
110.342
(316,560)
337,472
62.867
83,779
635.240
719.019
(8.573)
899,188
899.188
97.294 274.829
15,081
9.078
24.159
86.183
914,269
9.078
923.347
(204.328)
657,676
2,361
(15,634)
(652.976)
(8.573)
94,561
7,641
(476)
(23,160)
18,728
97.294
290,133
(15,893)
2,323
(1,734)
274.829
93,512
676
717
(8,894)
172
86.183
740,364
(7,576)
(2,734)
(49,094)
18,900
(904.188)
(204.328)
131
Buena Vista Lagoon is the home of migratory birds.
Snowy white egrets, great blue herons, ducks, geese, and many
other birds feed there.
132
AGENCY FONDS
Deferred Compensation
To account for amount employees have deposited in deferred compensation plans
offered by the City.
Contractor's Deposits
To account for money deposited by contractors for designated future
development.
s Deosits
To account for money deposited with the City for various items.
Assessment District
To account for the debt service transactions on assessment district bonds for
which the City is not obligated in some manner to assume payments in the event
of default by the property owners.
133
CITY OF CARLSBAD
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the year ended June 30, 1989
Deferred Compensation;
Assets:
Cash and investments
Liabilities:
Deferred compensation
payable
Balance
July 1,
1988
.257.972
Balance
June 30,
Additions Deductions 1989
460.225 - 1.718.197
$ 1.257.972 460.225 1.718.197
Contractors' Deposits:
Assets:
Cash and investments $ 1.277.372
Liabilities:
Deposits payable $ 1.277.372
382.867 (85.680) 1.574.559
383.626 (86.439) 1.574.559
Miscellaneous Deposits;
Assets:
Cash and investments
Accrued interest
Total assets
Liabilities:
Accounts payable
Deposits payable
$ 2,813,725 11,995,890 (10,173,774) 4,635,841
2.154 1.515 (2.154) 1.515
$ 2.815.879 11.997.405 (10.175.928) 4.637.356
$ 5,155 8,263 (5,155) 8,263
2.810.724 13.255.458 (11.437.089) 4.629.093
Total liabilities $ 2.815.879 13.263.721 (11.442.244) 4.637.356
134
Balance Balance
July 1, June 30,
1988 Additions Deductions 1989
Assessment District!
Assets:
Cash and investments $ - 1,049,071 (156,974) 892,097
Accrued interest ^ 15.606 - 15.606
Total assets - 1.064.677 (156.974) 907.703
Liabilities:
Assessments payable $ - 1.064.677 (156.974) 907.703
Totals - All Agency Funds;
Assets:
Cash and investments $ 5,349,069 13,888,053 (10,416,428) 8,820,694
Accrued interest 2.154 17.121 (2.154) 17.121
Total assets 5.351.223 13.905.174 (10.418.582) 8.837.815
Liabilities:
Accounts payable $ 5,155 8,263 (5,155) 8,263
Deposits payable 4,088,096 13,639,084 (11,523,528) 6,203,652
Deferred compensation
payable 1,257,972 460,225 - 1,718,197
Assessments payable - 1.064.677 (156.974) 907.703
Total liabilities $ 5.351.223 15.172.249 (11.685.657) 8.837.815
135
General Fixed Assets Account Group
General fixed assets are those fixed assets used in operations accounted for
in governmental funds. General fixed assets include all fixed assets not
accounted for in an enterprise, internal service, or trust and agency fund.
136
CITY OF CARLSBAD
General Fixed Asset Account Group
Schedule of General Fixed Assets by Function
June 30, 1989
Land
Buildings
Improvements
Furniture and
fixtures
Construction in
progress
Total
General
Government
492,035
1,696,555
338,613
1,445,582
Culture
and
Recreation
15,905,615
6,363,133
901,477
2.367.272
Public
Safety
2,150,407
14,736,083
120,563
646,593 1,527,695
19.785
Public
Works
1,019,408
298,523
Total
19,567,465
22,795,771
1,659,176
134,997 3,754,867
2.387.057
$ 3.972.785 26.184.090 18.554.533 1.452.928 50.164.336
137
CITY OF CARLSBAD
General Fixed Asset Account Group
Schedule of General Fixed Assets by Source
June 30, 1989
As of June 30, 1986
Net additions subsequent to June 30, 1988:
General Fund
Community Development Block Grant
Federal grants
State grants
Street lighting
Park development
Public facilities
Redevelopment
Total investment in general fixed assets
$ 27,136,537
11,485,647
285,751
234,690
167,066
8,612
2,903,846
5,720,280
2.221.907
50.164.336
138
139
CITY OF CARLSBAD
General Expenditures by Function
Last Ten Fiscal Years
Fiscal
Year
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
General
Total
$ 12,176
16,407
18,623
15,463
16,723
22,279
36,206
49,443
41,960
55,745
(1) government
,699 2,977
,099 3,648
,122 2,852
,426 2,272
,893 2,551
,729 3,008
,852 4,124
,365 5,645
,153 5,988
,009 7,139
,618 3
,090 3
,858 4
,174 5
,209 5
,056 7
,793 7
,325 9
,144 10
,089 11
(1) Includes General, Special
Public
Safety
,027,900 2,
,407,025 2,
,888,849 2,
,285,609 2,
,813,451 3,
,020,105 2,
,851,268 6,
,452,556 4,
,102,111 5,
,728,140 6,
Revenue ,
Public
Works
344,302
868,460
501,925
935,279
408,568
974,480
412,310
601,389
375,688
336,093
Debt
Wei fare
544
608
650
727
825
860
1,052
1,321
1,584
1,614
,597
,009
,202
,155
,236
,556
,394
,504
,897
,015
Culture-
Recreation
1,537,289
2,261,889
2,303,143
2,573,014
2,764,121
3,278,290
3,710,505
4,530,701
5,358,475
5,808,094
Service and Capital
Capital Debt
Projects Service
1,596,829 148,164
3,469,027 144,600
4,996,323 429,822
1,233,048 437,147
1,033,261 358,047
4,619,242 519,000
12,333,087 722,495
23,032,108 859,782
11,216,835 2,334,003
19,786,724 3,332,854
Projects Funds.
GENERAL EXPENDITURES BY FUNCTION
1988-89 .
PUBLIC SAFETY 21*
^^ifcs*11.7
ft
PUBLIC WORKS 11* / ^^^^^^^^^^m.8.3 /w««MM^..m.
/ \MiMiMiBSiiBBBBBBBBBV GENERAL GOVERNMENT 13*
WELFARE
1.6
CULTURE -RECREATION
* B
/3* mg>*.
fIJJIIj •
[:;:::: :::
i...... ...
^Bl
^^ ll
:::::::;::::»»:::!:::^^
.**•*•»••»••••. fty^
^^
••
••|1H
^
_--''
CAPITAL
^^^H
•I^
\
I DEBT
7.3
SERVICE 6%
3.3
7
PROJECTS 35*19.6
«LUII AHI IN MILLION!
Source: City of Carlsbad Comprehensive Annual Financial Reports.
140
TOTAL EXPENDITURES-LAST TEN YEARS
MILLIONS OF DOLLARS
20-
10-
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
INCLUDES GENERAL. SPECIAL REVENUE. DEBT
SERVICE AND CAPITAL PROJECT FUNDS
SPENDING ON CAPITAL PROJECTS
LAST TEN YEARS
MILLIONS OF DOLLARS
6-1
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
INCLUDES GENERAL. SPECIAL REVENUE. DEBT
SERVICE AND CAPITAL PROJECT FUNDS
141
CITY OF CARLSBAD
General Revenues by Source (1)
Last Ten Fiscal Years
Fiscal
Year
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
Total
$ 12,673,232
16,748,825
16,543,575
18,314,250
23,870,285
31,272,744
37,078,236
45,626,319
42,944,962
54,565,025
Property
Taxes
2,615,181
3,344,171
4,193,938
4,449,196
4,848,041
5,243,124
6,769,473
8,516,463
9,870,495
11,997,603
Sales
Taxes
2,969,586
3,302,134
3,941,152
3,974,732
4,891,379
5,726,373
6,222,008
6,487,371
7,128,461
8,186,215
Transient
Occupancy
Taxes
578,233
655,172
734,344
797,526
1,007,268
1,041,947
1,157,794
1,729,998
1,995,447
2,752,025
Other
Taxes
899,550
1,210,879
901,814
1,511,333
1,969,434
2,084,724
2,215,044
2,414,972
3,699,185
3,204,130
Business
Licenses
242,342
247,798
258,663
279,973
351,875
428,546
471,470
517,972
616,278
696,706
(1) Includes General, Special Revenue, Debt Service, and Capital Projects
Funds.
GENERAL REVENUE
LAST TEN YEARS
HILUOK* OF MM.LAM
1980 t»ei 1982 IMS 18*4 19M 1887 1988 1989
PROPERTY TAX AND SALES TAX REVENUE
LAST TEN YEARS
I PROPERTY TAX i SALES TAX
Source: City of Carlsbad Comprehensive Annual Financial Reports.
142
Other
Licenses
Intergov-
ernmental
Charges for
Services
Fines and
Forfeits Interest
Contributions
From Property
Owners
Miscel-
laneous
829,623
1,048,332
537,476
491,267
2,099,942
3,042,110
3,525,394
3,830,931
3,521,242
3,858,173
1,343,102
1,133,947
1,875,243
2,551,262
1,777,587
2,060,542
2,924,892
5,608,869
2,506,690
2,876,536
1,577,622
3,877,542
1,969,808
2,451,708
4,747,951
8,541,600
9,406,829
12,250,389
8,289,570
7,182,057
152,171
230,684
260,498
231,086
256,471
345,750
288,055
366,597
435,649
478,830
1,294,625
1,573,375
1,794,676
1,396,896
1,542,092
2,638,536
2,857,221
2,944,741
3,422,839
5,644,873
175,593
4,529,710
171,197
124,791
75,963
179,271
378,245
119,492
1,240,056
958,016
1,283,513
3,158,167
TRANSIENT OCCUPANCY TAX
LAST TEN YEARS
UllUOM Of OW.UM
198O 1081 1982 1M3 1984 1986 1986 198T 1988 1989
CHARGES FOR SERVICES
LAST TEN YEARS
MILLION* OF DOLLAR*
198O 1081 1982 1063 1O84 1O86 1086 1087 1088 1080
143
CITY OF CARLSBAD
Ratio of General Bonded Debt to Assessed Valuation
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Fiscal
Year
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
Net Assessed
Valuation (1)
$ 1,250,154,952
1,444,275,932
1,687,082,037
2,015,289,869
2,194,598,447
2,495,887,152
2,894,233,860
3,458,390,377
3,939,249,294
4,203,469,146
Outstanding
Principal (2)
1,425,000
1,245,000
1,145,000
1,030,000
915,000
900,000
785,000
670,000
550,000
420,000
Percent of
Total
Valuation
0.11%
0.08
0.06
0.05
0.04
0.03
0.03
0.02
0.01
0.01
Per Capita
Debt
40
35
32
26
23
20
16
12
9
7
Population (3)
35,448
35,606
36,172
39,037
40,665
44,566
48,872
55,282
58,888
62,030
(1) Net assessed value is stated at 100% of market value. Data from County of
San Diego Office of the Auditor and Controller.
(2) Library and sewer general obligation bonds per the City of Carlsbad
Comprehensive Annual Financial Reports.
(3) Population as of January 1 of each year per the State Department of
Finance.
RATIO OF OUTSTANDING GENERAL BONDED DEBT
TO POPULATION
PER CAPITA DEBT IN DOLLARS
10-
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
144
CITY OF CARLSBAD
Computation of Legal Debt Margin
June 30, 1989
25% of net assessed valuation (1) $ 1.050.867.286
Debt limit (15% of net assessed valuation as adjusted) $ 157.630.093
Amount of debt applicable to debt limit:
Bonded debt (2) 23,780,000
Certificates of participation 8,690,000
Capitalized leases 1,554,755
Total amount of debt applicable to
debt limit 34.024.755
Legal debt margin $ 123.605.338
Percent of debt limit 21.58%
(1) Beginning January 1, 1987, a change in state law required the County
Assessor to assess all taxable property at 100% of full value as opposed
to the prior practice of assessing property at 25% of full value. To be
consistent with previous years, the assessed valuation used for this
computation is at 25% of full value.
(2) Total bonded debt:
Library and Sewer $ 420,000
Parking and Building Authorities 2,055,000
College Boulevard Assessment District 9,305,000
Tax Allocation Bonds 12.000.000
Total bonded debt $ 23.780.000
145
CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
June 30, 1989
1988-89 Total Assessed Valuation! $4,287,316,546 (after deducting $100,334,546
redevelopment tax allocation increment)
Debt
June 30,
Direct and Overlapping Bonded debt; % Applicable 1989
San Diego County Building Authorities 4.667% $ 14,084,306
San Diego County Water Authority 4.827 1,302,566
San Diego County Water Certificates
of Participation 4.827 4,672,536
Metropolitan Water District 0.777 5,663,475
Carlsbad Unified School District
(various issues) 96.812 - 96.816 408,314
Carlsbad Unified School District Authority 96.807 5,300,183
San Marcos Unified School District and
Certificates of Participation 22.574 1,591,434
San Dieguito Union High School District 9.032 252,896
Encinitas Union School District and Authority 25.377 563,370
Mira Costa Community College District
Authority 26.254 787,620
Other School Districts Various 3,780
Tri-City Hospital District 32.819 628,484
Palomar Polmerado Hospital District
& Authority 0.719 106,233
Leucadia County Water District & I.D. #1 51.431 & 2.884 277,342
San Marcos County Water & I.D.'s #1,2,6 6.534 - 10.826 150,566
Costa Real (Carlsbad) Municipal Water*
District Certificates of Participation 99.984 13,882,778
Costa Real (Carlsbad) Municipal Water
District I.D. #2, 3, 4 98.792 - 99.973 844,765
Olivenhain Municipal Water District I.D. #1 31.811 407,181
City of Carlsbad 100.000 420,000 (1)
City of Carlsbad Building Authorities 100.000 10,745,000 (2)
City of Carlsbad 1915 Act Bonds 100.000 14.438.940
$ 76.531.769
(1) Excludes tax allocation bonds and capitalized leases.
(2) Includes City of Carlsbad Building and Parking Authorities and the Public
Improvement Corporation.
Ratios to Assessed Valuation:
Direct Debt ($11,165,000) 0.26%
Total Debt 1.79%
Source: California Municipal Statistics, Inc.
146
CITY OF CARLSBAD
Ratio of Annual Debt Service for
General Bonded Debt to Total Governmental Expenditures
Last Ten Fiscal Years
Fiscal
Year Principal Interest
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
$ 95,000
95,000
100,000
115,000
15,000 (3)
115,000
115,000
115,000
120,000
130,000
53,164
49,600
49,160
42,797
38,022
33,723
29,727
27,505
23,179
18,556
Total
Debt
Service (1)
148,164
144,600
146,160
157,797
53,022
148,723
144,727
142,505
143,179
148,556
Total
Governmental
Expenditures (2)
12,176,699
16,407,099
18,623,122
15,463,426
16,723,893
22,297,729
36,206,852
49,443,365
41,960,153
55,745,009
Ratio of Debt
Service to
Governmental
Expenditures %
1.2%
0.9
0.8
1.0
.3
,7
0.
0.
0.4
0.3
0.3
0.3
(1) Debt service requirement on General Obligation Bonds comprised of 1962
Sewer Bonds Series B and C; and 1966 Library Bonds. Excludes debt
service for the Assessment District and the Building and Parking
Authorities.
(2) Includes General, Special Revenue, Debt Service and Capital Project funds.
(3) In 1983-84, the City began recording principal payments in the year they
become payable. The general obligation principal payments for the City's
Sewer Bonds are due July 1 and had previously been recorded as paid by the
City on June 30 each year.
RATIO OF DEBT SERVICE TO GENERAL
EXPENDITURES
1080 1881 1982 1983 1884 1886 1886 1887 1888 1888
Source: City of Carlsbad Comprehensive Annual Financial Reports.
147
CITY OF CARLSBAD
Revenue Bond Coverage
Water Bonds
Last Ten Fiscal Years
Net Revenue
Direct Available
Operating for Debt
Expenses Service
Debt Service Requirements
Principal Interest Total Coverage
1979-80 $
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1,806,817
1,977,591
2,084,262
1,934,415
1,672,564
1,371,214
1,522,383
1,532,953
1,637,819
1,760,102
1,333,560
1,655,756
1,620,519
1,945,681
1,557,173
1,119,336
1,317,953
933,368
1,334,525
1,195,822
473,257
341,835
463,743
(11,266)
115,391
251,878
204,430
599,585
303,294
564,280
95,000
105,000
215,000
115,000
(1)
125,000
130,000
140,000
150,000
157,000
80,377
74,985
69,715
64,492
56,875
50,138
42,531
38,549
29,096
21,211
175,377
179,985
284,715
179,492
56,875
175,138
172,531
178,549
179,096
178,211
270%
190
163
(6)
203
144
118
336
169
317
(1) In 1983-1984 the City began recording principal payments for the Water
Revenue Bonds in the year they became payable. In prior years principal
payments had been recorded as paid on June 30 of each year rather than
July 1 of the following year.
Source: City of Carlsbad Comprehensive Annual Financial Reports.
148
WATER ENTERPRISE GROSS REVENUE
AND DIRECT OPERATING EXPENSES
2500
THOUSANDS OF DOLLARS (Thou»»ndi)
2000-
1500-
1000-
500-
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
GROSS REVENUE OPERATING EXPENSES
NET REVENUE AVAILABLE FOR DEBT SERVICE
LAST TEN YEARS
700
THOUSANDS OF DOLLARS
600-
500-
400-
300-
200-
100-
-100
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
149
CITY OF CARLSBAD
Demographic Statistics
Last Ten Fiscal Years
Year
Square
Miles
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1995
(Estimate)
2000
(Estimate)
2010
(Estimate)
29.4
29.7
29.8
32.0
32.0
35.6
36.0
39.7
39.7
39.7
Population (4)
35,448
35,606
36,172
39,037
40,665
44,566
48,872
55,282
58,888
62,030
77,310 (3)
84,954 (3)
100,826 (3)
Population
Percent
Change
10.4
0.4
1.6
7.9
4.2
9.6
9.7
13.1
6.5
5.3
County
Population (1)
1,808,200
1,899,900
1,924,700
1,986,035
2,041,362
2,083,359
2,166,169
2,240,659
2,327,657
2,418,176
(2)
(2)
(2)
City
Population
Percent
of County
2.0
1.9
1.9
2.0
2.8
2.1
2.3
2.5
2.5
2.6
(1) Source - County Data Base, San Diego County.
(2) County future population estimate not available.
(3) Population for City General Plan area - San
Governments Series VII population forecast.
(4) Source - State Department of Finance.
Diego Association of
POPULATION
LAST TEN YEARS
1980 1981 1982 1983 1984 1986 1988 1987 1988 1989
POPULATION A8 Of JANUARY 1
PER STATE DEPARTMENT OF FINANCE
150
CITY OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Fiscal
Year
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
Secured
Property
* 1,273,
1,467,
1,700,
2,027.
2,195,
2,487,
2,893,
3,456.
3,937,
4,197,
499,832
470,336
974,823
411,290
611,840
497,173
268,927
419,183
879,614
767,148
Unsecured
Property
51,751,756
35,508,800
43,077,175
50,604,897
57,309,394
75,231,054
77,524,350
80,781,420
98,879,688
109,633,027
Less
Property
Exemptions
9,419,844
10,315,004
8,210,761
13,841,078
8,401,587
14,605,675
18,616,217
19,248,842
21,859,608
20,083,629
NET TAXABLE VALUE
LAST TEN YEARS
BILLIONS OF DOLLARS
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
Source: County of San Diego Office of the Auditor and Controller.
152
Total
Assessed
Valuation
1,315,831,744
1,492,664,132
1,735,841,237
2,064,175,109
2,244,519,647
2,548,122,552
2,952,177,060
3,517,951,761
4,014,899,694
4,287,316,546
Business
Inventory
Exemptions
20,829,192
Homeowner's
Exemptions
44,847,600
48,388,200
48,759,200
48,885,200
49,921,200
52,235,400
57,943,200
65,492,000
75,650,400
83,847,400
Net
Assessed
Valuation
1,250,154,952
1,444,275,932
1,687,082,037
2,015,289,909
2,194,598,447
2,495,887,152
2,894,233,860
3,452,459,761
3,939,249,294
4,203,469,146
153
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Building
Fiscal
Year
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
Permit
Revenue
181,839
328,453
271,542
490,100
1,068,876
1,055,738
1,397,129
1,230,100
671,779
674,814
Percent
Change
52.5%
80.6
(17.3)
.5
,1
80.
118.
(1.2)
32.3
(12.0)
(45.4)
.5
Estimated
Valuation
41,900,000
85,900,000
52,700,263
79,400,000
198,520,304
213,403,469
263,548,719
245,661,491
127,831,606
111,898,109
Business
Licenses
Revenue
242,342
247,798
258,663
279,973
351,875
428,546
471,470
517,972
616,278
696,706
Percent
Change
29.7%
2.3
4.4
8.2
25.7
21.8
10.0
9.9
19.0
13.1
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
MILLIONS OF DOLLARS
300 -i
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
Source: City of Carlsbad Comprehensive Annual Financial Reports.
154
CITY OF CARLSBAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year (1)
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
Total
Current
Lew (1)
3,177,757
3,819,009
4,491,805
5,082,021
5,605,774
6,051,971
7,013,691
8,644,209
9,922,196
12,250,188
Total
Current
Collections (2)
3,177,892
3,742,244
4,325,152
5,017,599
5,491,980
5,984,957
7,201,032
9,502,177
10,797,171
12,581,954
% of
Levy
Collected
100.00%
97.99
96.29
98.73
97.97
98.89
102.67
109.93
108.82
102.70
(1) Opening charges. Does not include Supplemental Assessments.
(2) Collections include prior years' delinquencies
TOTAL TAX LEVY
LAST TEN YEARS
MILLIONS OF DOLLARS
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
155
CITY OF CARLSBAD
Special Assessment Billings and Collections
College Boulevard Assessment District
Last Three Fiscal Years
Fiscal Special Assessment Special Assessments
Year Billings Collected
Prior to
1987 N/A N/A
1987 $ 1,000,362 996,884
1988 988,116 987,682
1989 984.718 985.207
$ 2.973.196 2.969.773
Note: There were no special assessment billings for the College Boulevard
Assessment District prior to the fiscal year ended June 30, 1987.
Source: County of San Diego Office of the Auditor and Controller.
156
CITY OF CARLSBAD
PERS Historical Trend Information
Last Two Fiscal Years
Fiscal year ended June 30.
1988 1987
Net assets available for benefits (at cost) $ 28,385,378 23,855,533
Pension benefit obligation (PBO) 30,249,445 26,158,779
Net assets as a % of PBO 93.8% 91.2%
Unfunded pension benefits obligation 1,864,067 2,303,246
Annual covered payroll 12,170,100 12,147,900
Unfunded PBO as a % of annual covered payroll 14.2% 19.0%
Ten year historical trend information is not available from the California
Public Employees Retirement System, therefore, only the available information
is presented.
Source: The California Public Employees Retirement System.
157
CITY OF CARLSBAD
Principal Employers
1988-1989
Firm
Manufacturing'
Hughes Aircraft Company,
Industrial Products Division
Puritan-Bennett Corporation
Eaton-Leonard Corporation
Beckman Instruments
Taylor Made Golf
Dyna Med, Inc.
Watkins Products
Sierracin-Magnedyne Inc.
Sargent Industries
International Totalizer System
Don Joy
Product/Service Emolovees
Electronic Components
Medical Equipment
Vending Machines
Microbics Operation
Golf Equipment
Emergency Medical Products
Spas
Electronic Motors
Industrial Seals
Off-track Betting Systems
Orthopedic Braces
1,500
450
275
240
200
195
185
162
150
145
115
Non—Manufacturing;
Plaza Camino Real
La Costa Hotel & Spa
Car Country Auto Dealers
Carlsbad Unified School District
San Diego Gas & Electric, Encina
City of Carlsbad
Farmer's Insurance - Regional
Pea Soup Andersen's
Jazzercise
Daniel's Cablevision
Shopping center (5 major
department stores)
Hotel & health spa
Car dealers
all major agencies
Education
Power generation
Municipal Government
Insurance
Restaurant/Hotel
Dance Fitness
Cable TV
1,000
1,000
500 (est.)
425
414
479
320
250
101
100
Source: City of Carlsbad Chamber of Commerce.
158
CITY OF CARLSBAD
Principal Taxpayers
1988-1989
Taxcaver
La Costa Hotel & Spa Corp.
San Diego Gas & Electric Co.
Hughes Aircraft Co. (Corp.)
Upland Industries Corp.
Fieldstone/La Costa Asso.
Multi-Family Associates
'Plaza Camino Real
Traweek Investment Fund
Carlsbad Inn, Ltd.
Vista Hacienda
Type of Business
Hotel & Spa
Power Generation
Manufacturer
Land Developer
Land Developer
Land Developer
Shopping Center
Land Investor
Hotel
Land Investor
Valuation
$ 382,538,365
313,000,000
103,724,073
92,356,920
76,366,129
27,144,592
27,033,403
25,086,140
24,802,695
24.537.573
$ 1.096.589.890
Percentage of
total net
assessed
Valuation(1)
9.10%
7.45%
2.47%
2.
1,
,20%
.82%
.65%
.64%
.60%
.59%
.58%
26.10%
(1) Net assessed valuation for 1988-1989 - $4,203,469,146
Source: County of San Diego Office of the Auditor and Controller.
159
CITY OF CARLSBAD
Miscellaneous Statistical Information
Date of incorporation
Type of city
Form of government
Area
Population
Number of street lights
Miles of streets
Fire Protection:
Number of stations
Number of firefighters and officers
Police Protection:
Number of stations
Number of sworn police officers
Municipal Water District:
Number of customers
Average daily consumption
Miles of lines and mains
Miles of sewers
Recreation and Culture:
Number of parks (improved
and unimproved)
Area of parks
Pools
Number of libraries
Number of volumes
Total number of City employees
July 16, 1952
General Law
Council/Manager
39.7 sq. miles
62,030
4,198
199
5
67
1
73
15,584
14.8 million gallons
219
102
37
329.11 acres
1
2
196,313
479
160
CITY OF CARLSBAD
Annual Debt Service Requirements
1960 WATERWORKS REVENUE BONDS
Fiscal Interest Due
Year July 1
1989-90
1990-91
$ 2,459
1.259
$ 3.718
Interest Due
January 1
1,259
1.259
Total
Interest
3,718
1.259
4.977
Principal Due Total Annual
July 1 Debt Service
60,000
65.000
125.OOP
63,718
66.259
129.977
1970 WATERWORKS REVENUE BONDS
Fiscal Interest Due
Year July 1
1989-90 $ 6,000
1990-91 3.000
$ 9.000
Interest Due
January 1
Total Principal Due Total Annual
Interest July 1 Debt Service
3,000
3.000
9,000
12.000
100,000
100.000
200^000
109,000
103.000
212.000
1962 SERIES B. GENERAL OBLIGATION. SEWER BONDS
Fiscal
Year
1989-90
1990-91
1991-92
Interest Due
Julv 1
$5,040
3,420
1.800
$ 10.260
Interest Due Total
January 1 Interest
3,420
1,800
5.220
8,460
5,220
1.800
15.480
Principal Due Total Annual
Julv 1 Debt Service
90,000
90,000
100.000
280.000
98,460
95,220
101.800
295.480
Source: Debt Service Schedules Obtained from Respective Trustees.
161
CITY OF CARLSBAD
Annual Debt Service Requirements, Continued
1962 SERIES C. GENERAL OBLIGATION. SEWER BONDS
Fiscal
Year
1989-90
1990-91
1991-92
Interest Due
Julv 1
$ 1,406
937
Interest Due
January 1
938
469
$ 2.812 1.407
1966 LIBRARY GENERA
Fiscal
Year
1989-90
1990-91
1991-92
Interest Due
Julv 1
$ 1,462
1,013
562
$ 3.037
Interest Due
January 1
1,462
1,013
3.037
Total
Interest
Principal Due
Julv 1
2,344 25,000
1,406 25,000
469 25.000
4.219 75.000
I, OBLIGATION BONDS
Total
Interest
2,924
2,026
6.074
Principal Due
Januarv 1
20,000
20,000
25.000
65.000
Total Annual
Debt Service
27,344
26,406
79.219
Total Annual
Debt Service
22,924
22,026
26.124
71.074
1967 CARLSBAD BUILDING AUTHORITY
REVENUE BONDS
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
Interest Due
December 15
$ 3,600
2,850
1,950
1.050
Interest Due
June 15
2,850
1,950
1,050
Total
Interest
6,450
4,800
3,000
1.050
Principal Due
December 15
25,000
30,000
30,000
35.000
Total Annual
Debt Service
31,450
34,800
33,000
36.050
9.450 5.850 15.300 120.000 135.300
162
CITY OF CARLSBAD
Annual Debt Service Requirements, Continued
1969 CARLSBAD PARKING AUTHORITY
REVENUE BONDS
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
Interest Due
October 1
$ 23,181
20,800
17,600
14,400
11,200
8,000
4.000
Interest Due
April 1
20,800
17,600
14,400
11,200
8,000
4,000
—
Total
Interest
43,981
38,400
32,000
25,600
19,200
12,000
4.000
Principal Due
October 1
75,000
100,000
100,000
100,000
100,000
125,000
125.000
Total Annual
Debt Service
118,981
138,400
132,000
125,600
119,200
137,000
129.000
$ 99.181 76.QQQ 175.181 725.OOP 900.181
1981 CARLSBAD PARKING AUTHORITY
REVENUE BONDS
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
Interest Due
Augus t 1
$ 48,400
46,000
43,000
40,000
37,000
33,000
29,000
25,000
21,000
16,000
11,000
6.000
Interest Due
February 1
48,400
46,000
43,000
40,000
37,000
33,000
29,000
25,000
21,000
16,000
11,000
6.000
Total
Interest
96,800
92,000
86,000
80,000
74,000
66,000
58,000
50,000
42,000
32,000
22,000
12.000
Principal Due
February 1
60,000
75,000
75,000
75,000
100,000
100,000
100,000
100,000
125,000
125,000
125,000
150.000
Total Annual
Debt Service
156,800
167,000
161,000
155,000
174,000
166,000
158,000
150,000
167,000
157,000
147,000
162.000
$ 355.400 355.400 710.800 1.210.000 1.920.800
163
CITY OF CARLSBAD
Annual Debt Service Requirements, Continued
1988 CARLSBAD HOUSING AND REDEVELOPMENT
COMMISSION TAX ALLOCATION BONDS
Fiscal Interest Due Interest Due
Xear
1989-90 *
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
October 1
438,676
438,676
431,664
423,969
415,414
406,111
395,799
384,261
371,531
357,559
342,159
325,296
306,681
286,332
263,870
239,550
213,330
184,830
154,050
119,925
83,070
43.095
April 1
438,676
438,676
431,664
423,969
415,414
406,111
395,799
384,261
371,531
357,559
342,159
325,296
306,681
286,332
263,870
239,550
213,330
184,830
154,050
119,925
83,070
43.095
Total
Interest
877,352
877,352
863,328
847,938
830,828
812,222
791,598
768,522
743,062
715,118
684,318
650,592
613,362
572,664
527,740
479,100
426,660
369,660
308,100
239,850
166,140
86.190
Principal Due
April 1
_
255,000
270,000
290,000
305,000
330,000
355,000
380,000
405,000
440,000
475,000
510,000
550,000
595,000
640,000
690,000
750,000
810,000
875,000
945,000
1,025,000
1.105.000
Total Annual
Debt Service
877,352
1,132,352
1,133,328
1,137,938
1,135,828
1,142,222
1,146,598
1,148,522
1,148,062
1,155,118
1,159,318
1,160,592
1,163,362
1,167,664
1,167,740
1,169,100
1,176,660
1,179,660
1,183,100
1,184,850
1,191,140
1.191.190
Total * 6.625.848 6.625.848 13.251.696 12.000.000 25.251.696
164
CITY OF CARLSBAD
Annual Debt Service Requirements, Continued
1988 CERTIFICATES OF PARTICIPATION
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
Interest Due
August 1
$ 323,793
320,774
314,311
307,124
299,324
290,730
281,143
270,590
259,205
246,780
233,100
217,930
201,400
182,600
162,200
140,000
116,000
90,400
62,600
36.600
Interest Due
February 1
320,774
314,311
307,124
299,324
290,730
281,143
270,590
259,205
246,780
233,100
217,930
201,400
182,600
162,200
140,000
116,000
90,400
62,600
36,600
—
Total
Interest
644,567
635,085
621,435
606,448
590,054
571,873
551,733
529,795
505,985
479,880
451,030
419,330
384,000
344,800
302,200
256,000
206,400
153,000
99,200
36.600
Principal Due
Aueus t 1
115,000
235,000
250,000
260,000
275,000
295,000
315,000
330,000
355,000
380,000
410,000
435,000
470,000
510,000
555,000
600,000
640,000
695,000
750,000
815.000
Total Annual
Debt Service
759,567
870,085
871,435
866,448
865,054
866,873
866,733
859,795
861,030
859,880
860,985
854,330
854,000
854,800
857,200
856,000
846,400
848,000
849,200
851.600
Total $ 4.356.604 4.032.811 8.389.415 8.690.000 17.079.415
165
CITY OF CARLSBAD
Annual Debt Service Requirements, Continued
COLLEGE BOULEVARD ASSESSMENT DISTRICT BONDS
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Interest Due
August 1
$ 361,615
352,840
343,040
332,390
320,790
308,025
294,150
279,140
262,778
244,952
225,648
204,712
182,000
157,200
130,400
101,400
70,200
36.400
Interest Due
February 1
352,840
343,040
332,390
320,790
308,025
294,150
279,140
262,778
244,952
225,648
204,712
182,000
157,200
130,400
101,400
70,200
36,400
—
Total
Interest
714,455
695,880
675,430
653,180
628,815
602,175
573,290
541,918
507,730
470,600
430,360
386,712
339,200
287,600
231,800
171,600
106,600
36.400
Principal Due Total Annual
Augus t 1
260,000
280,000
300,000
320,000
345,000
370,000
395,000
425,000
460,000
495,000
530,000
575,000
620,000
670,000
725,000
780,000
845,000
910.000
Debt Service
974,455
975,880
975,430
973,180
973,815
972,175
968,290
966,918
967,730
965,600
960,360
961,712
959,200
957,600
956,800
951,600
951,600
946.400
Total $ 4.207.680 3.846.015 8.053:745 9.305.000 17.358.745
166