HomeMy WebLinkAbout; ; 1993-1994 CAFR; 1994-06-30CITY OF CARLSBAD
1200 Carlsbad Village Drive • Carlsbad, CA 92008
Comprehensive Annual
Financial Report
FISCAL YEAR ENDED
JUNE 30, 1994
Prepared by the Finance Department
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1994
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents i
Letter of Transmittal 1
Location Map 20
List of City Officials 21
Organization Chart 22
Certificate of Award for Outstanding Financial Reporting,
California Municipal Finance Officers 24
FINANCIAL SECTION:
Independent Auditors' Report 25
General Purpose Financial Statements:
• Combined Balance Sheet - All Fund Types and Account Groups 26
• Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - All Governmental Fund Types 29
• Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual (Budgetary Basis) - All
Governmental Fund Types 30
• Combined Statement of Revenues, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types 32
• Combined Statement of Cash Flows - All Proprietary
Fund Types 33
• Notes to General Purpose Financial Statements 35
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1994
TABLE OF CONTENTS (CONTINUED)
Supplemental Data:
Governmental Funds:
General Fund:
• Schedule of Revenues - Budget and Actual (Budgetary Basis) 68
• Schedule of Expenditures - Budget and Actual (Budgetary Basis) 70
• Comparative Schedule of Expenditures 71
• Comparative Schedule of Revenues 72
Special Revenue Funds:
• Combining Balance Sheet 76
• Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 78
• Combining Schedule of Revenues and Expenditures - Budget and
Actual (Budgetary Basis) 80
Debt Service Funds:
• Combining Balance Sheet 90
• Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 91
• Redevelopment Bonds Debt Service Fund Schedule of Revenues and
Expenditures - Budget and Actual (Budgetary Basis) 92
Capital Projects Funds:
• Combining Balance Sheet 96
• Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 98
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1994
TABLE OF CONTENTS (CONTINUED)
Proprietary Funds:
Enterprise Funds:
• Combining Balance Sheet 102
• Combining Statement of Revenues, Expenses and Changes in
Retained Earnings 103
• Combining Statement of Cash Flows 104
Internal Service Funds:
• Combining Balance Sheet 108
• Combining Statement of Revenues, Expenses and Changes in
Retained Earnings 109
• Combining Statement of Cash Flows 110
Fiduciary Funds:
Agency Funds:
• Combining Statement of Changes in Assets and Liabilities 113
Account Groups:
General Fixed Asset Account Group:
• Schedule of General Fixed Assets by Function 115
• Schedule of Changes in General Fixed Assets by Function 116
• Schedule of General Fixed Assets by Source 117
Schedule of Annual Debt Service Requirements 120
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1994
TABLE OF CONTENTS (CONTINUED)
STATISTICAL SECTION:
(Not covered by Independent Auditors' Report)
• General Expenditures by Function, Last Ten Fiscal Years 126
• General Revenues by Source, Last Ten Fiscal Years 128
• Ratio of General Bonded Debt to Assessed Valuation and Net
Bonded Debt Per Capita, Last Ten Fiscal Years 130
• Computation of Legal Debt Margin 131
• Schedule of Direct and Overlapping Bonded Debt 132
• Ratio of Annual Debt Service for General Bonded Debt to Total
Governmental Expenditures, Last Ten Fiscal Years 133
• Water Enterprise - Revenue Bond Coverage, Last Ten Fiscal Years 134
• Demographic Statistics, Last Ten Fiscal Years 136
• Schedule of Assessed Valuation, Last Ten Fiscal Years 138
• Construction and Business Activity, Last Ten Fiscal Years 140
• Property Tax Levies and Collections, Last Ten Fiscal Years 141
• Special Assessment Billings and Collections, College Boulevard
Assessment District, Last Eight Fiscal Years 142
• Principal Employers, 1993-94 143
• Principal Taxpayers, 1993-94 144
• Miscellaneous Statistical Information 145
IV
City of Carlsbad
Finance Department
September 23, 1994
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD
Carlsbad, California
1993-94 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL
We are pleased to present the 1993-94 Comprehensive 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 Authority of the City of
Carlsbad, the Carlsbad Public Improvement Corporation, the Carlsbad Redevelopment Agency
and the Carlsbad Municipal Water District, as well as the opinion of our independent auditors,
Conrad & Associates. The completion of this independent audit is an important part of the total
financial management program for the City of Carlsbad.
The information found in this report is provided by management to the Council and the public
to assist those interested in understanding the fiscal condition of the City as of June 30, 1994.
Responsibility for both the accuracy of the data, and the completeness and fairness of the
presentation, including all disclosures, rests with the City. To the best of our knowledge and
belief, the enclosed data are accurate in all material respects and are reported in a manner
designed to present fairly the financial position and results of operations of the various funds and
account groups of the City of Carlsbad. All disclosures necessary to enable the reader to gain
an understanding of the government's financial activities have been included.
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 42
square miles and has a population of 67,900. Industries in the area include a major regional
shopping center, 18 auto dealers, 24 hotels offering 1,884 rooms for tourist lodging, aerospace
manufacturing, electronics, golf apparel and equipment manufacturers, several business and light
industry parks, and numerous land developers building single and multi-family housing in a
variety of community settings.
1200 Carlsbad Village Drive • Carlsbad, CA 92008-1989 • (619) 434-2867 - FAX (619) 434-1987
Services Provided bv 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 provides water services through the Carlsbad
Municipal Water District, a subsidiary district of the City. City Council serves as the Board of
Directors for the Carlsbad Municipal Water District. 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 475 low and moderate income
families with housing assistance. The City's literacy program, funded by the General Fund,
provides adult education to local area residents. Older Carlsbad 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. The City supports various service agencies such as the Women's Resource Center,
YMCA and other agencies providing social services to Carlsbad residents. Finally, the City has
reserved over $300,000 for support of the arts, art programs, and the purchase of works of art.
Significant Events and Accomplishments
During 1993-94 the City experienced many significant events and accomplishments that may not
be evident from a review of the financial statements. Some of the more important events are
shown below.
Balanced Budget - One of the most significant accomplishment this year was again successfully
balancing the General Fund budget. General Fund revenues were impacted downward when
the State of California adopted its budget. Property taxes were again diverted from the City's
General Fund to the State for school funding. To help offset the loss this year, the State
allocated some one-time savings back to the City through the vehicle license fees and there was
an extension of the statewide half-cent sales tax to be spent on public safety services. The net
loss to the City was approximately $600,000. Adding to the challenge of balancing revenues with
expenditures was an unprecedented net decrease in assessed valuation which was attributable
to declining property values and property reassessments. The City responded by freezing staff
levels, lowering maintenance and operating expenses, deferring projects, and fewer capital
purchases. Through these efforts, the City was able to keep the General Fund expenditures in
line with the revenues and $2.3 million under budget.
Awards for Excellence - In late 1994 the League of California Cities announced that Carlsbad
would receive three Helen Putnam Awards for Excellence. The California Cities Helen Putnam
Award for Excellence seeks to recognize the achievements and unique contributions made by
California cities to their residents and business community. Carlsbad will receive the awards for
its programs in the areas of environmental quality, economic and community development, and
enhancing diversity in the workplace and community.
Environmental quality was recognized for a plan to provide habitat for endangered species while
also allowing development of a master planned project and construction of a major road. The
Helen Putnam economic and community development award recognized the City and State
cooperative partnership, together with other local agencies and the public and private sector, to
promote Carlsbad for the Lego theme park. After a nationwide competition, Carlsbad was
selected for the first Lego theme park in the nation. A grand prize award was granted for
enhancing diversity in the workplace and community through the special library service to the
City's Spanish-speaking residents. The Centra de Informacion provides information about city
services, health care, motor vehicle regulations and many other issues while providing children
a positive, safe learning environment.
General Plan Update - After several years of public review, including town hall meetings and
community forums to receive citizen input, City Council approved the first complete General Plan
evaluation since the 1970's. All elements of the General Plan were updated, eleven elements
were combined into eight, and the complete plan reformatted for consistency.
Economic Development - The City's economic development program goal is to achieve
economic growth and stability for the City through proactive efforts to attract targeted industries
to provide a strong economic base. Staff continued work on a strategic plan, with much of the
effort in 1993-94 related to attracting biotech industries and the potential development of
Carlsbad Ranch which includes a major hotel, golf courses, gemology institute, and a theme
park.
Affordable Housing - In 1993, Council adopted an inclusionary housing program which required
that a minimum of 15% of all future residential units are affordable to lower income households.
City Council also added to the funding and future construction of affordable housing in Carlsbad
with the adoption of inclusionary housing fees. Developers may pay fees instead of constructing
affordable units if all development approvals were in place prior to the ordinance or six or fewer
units are to be constructed. By the end of fiscal year 1993-94, affordable housing reserves
totaled $240,000.
In addition, the development and financing of La Terraza, an affordable housing project, began
this year and is scheduled for completion in 1995. La Terraza will provide 344 housing units
affordable to low and very low income households. The project will be constructed in the
southwest quadrant of the City and is located near shopping and transportation. Many funding
sources are required with private financing joined with Redevelopment Agency low and moderate
tax increment funds and federal community development block grant loans. La Terraza will meet
the affordable housing requirement of one of the City's major land developers and may be used
to satisfy the affordable housing requirements of other off-site developers.
Construction of Capital Projects - The City's aggressive capital building program picked up
again in 1993-94 with an outlay of approximately $14 million. Lower development revenues led
to project phasing and moving some planned projects to future years. During the last nine years,
Carlsbad expended more than $122 million for capital projects including major streets,
community parks, a senior center, a civic facility for police and fire, fire stations, main library, and
sea wall and bluff protection. This dedication to improving the infrastructure of the City is
expected to continue into the foreseeable future as the City implements its long range capital
improvement program.
Several major road construction projects were completed in 1993-94 including the Interstate
5/Palomar Airport Road interchange, and the enhancements to Carlsbad Village Drive leading to
the downtown Village area and local beaches. Construction continued on Palomar Airport Road
East and El Camino Real, a vital circulation link to northern San Diego County and a joint effort
of Carlsbad and two neighboring cities.
Wetlands Restoration - Batiquitos Lagoon, one of the City's three lagoons to the Pacific Ocean,
began its wetlands restoration in 1994. The project took many years of planning and design,
overcoming lawsuits, and obtaining numerous state and federal agency approvals. The three
year wetland restoration project will dredge the lagoon and restore fish and wildlife habitat. A
channel and off-shore jetties will be constructed to restore full tidal flushing and nesting areas for
various species of birds will be built. As mitigation for its recent expansion, the Port of Los
Angeles is completely funding the $30 million construction project.
Habitat Management Plan (HMP) - As stated earlier, the City's Habitat Management Plan was
the recipient of a Helen Putnam Award for Excellence in 1994. The Habitat Management Plan
will provide policies and mechanisms for the protection of wildlife habitat, especially of
endangered, threatened, or sensitive species. Completion of the biological inventory and
analysis led to identification of candidate preserve areas with linking corridors throughout the
City. Coordination with other agencies and with City development policy documents continues.
The HMP is expected to lead to application for a Habitat Conservation Plan under the federal
Endangered Species Act. Coordinating with the City's HMP, a draft Habitat Conservation Plan
was prepared by a major developer in the southeast quadrant of the City. Council authorized
submission of the plan to state and federal agencies and its future implementation will preserve
many listed and threatened species.
Geographic Information System (GIS) - Development of a parcel-based Geographic Information
System (GIS) continued in 1993-94. GIS contains base layers of parcel, roadways, and address
information and is used by City departments to provide more efficient safety and public services,
monitor growth, and allow financial and land use projections. In 1993-94, GIS was utilized for
initial evaluation of Carlsbad Ranch property including land use and ownership as well as
engineering and environmental constraints analyses. GIS provided analysis services and
mapping data to finance, safety services, and community development departments. In addition,
GIS provided land use, topography, and mapping information for the Habitat Management
Program.
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 summarized 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 Information - 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 and
agency type funds. Governmental funds include the General, Special Revenue, Debt
Service and Capital Projects 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 Enterprise and Internal Service Funds) use the accrual
method of accounting. Revenues and expenses are recorded when earned or 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 quarterly 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 Financial Management Director annually prepare a budget
for the City Manager showing estimated revenues and expenditures.
Total City Operations
During 1993-94 the City staff of 477 full-time employees provided a complete range of City
services to the 67,900 residents and many businesses in Carlsbad. Throughout most of its
history, Carlsbad has had the benefit of working with revenues sufficient to meet anticipated
expenditures; however, the 1990's show a reversal of this trend. Revenues stopped growing and
state legislation resulted in new mandatory expenditures as well as the loss of revenues. Over
the past four years, Carlsbad has made every effort to maintain service levels through the deferral
of projects and the management of vacant staff positions.
Although Carlsbad entered 1993-94 with a balanced budget, revenue estimates were revised
downward after the State adopted its budget. General Fund and Redevelopment Agency were
impacted by the mandated transfer of property taxes to the State and recessionary influences
significantly reduced remaining property tax revenues. Budget reductions were accomplished
by continuing the hiring freeze which allowed the filling of only the most necessary positions.
Each department held the line on operating and capital equipment expenses with minimal
impacts on programs and service levels. The close of 1993-94 showed the results, with an
excess of revenues over expenditures in all fund types except debt service and special revenue,
where reserves were utilized for long-term projects.
Spending on all City programs totaled $88 million, an increase of $9.5 million from 1993-94. The
increase is primarily due to land purchases and construction costs on several major capital
projects. Revenues for 1993-94 totaled $90.3 million, an increase of about $7.7 million or 9%
more than last year's total of $82.6 million. The major factors for the revenue gain are new
developer fees for future road construction and the increase in water rates to recover escalating
costs of purchased water.
Carlsbad is entering 1994-95 in a fiscally sound position due to City Council's rapid response to
decreasing revenues as a result of the recession. The general outlook for the next five years will
be challenging, matching slower tax base growth with financial requirements 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, 1994.
Revenue from All Fund Types
(in thousands)
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Enterprise Funds1
Internal Service Funds1
TOTAL REVENUES
1993-94
$38,763
7,346
2,197
13,933
21,231
6.789
1992-93
$39,709
7,149
2,083
9,174
17,895
6.570
1993-94 over
(under) 1992-93 Change
(2.4)%
2.8
5.5
51.9
18.6
3.3
9.3%
(1) Includes operating and non-operating revenues
Expenditures (or Expenses) All Fund Types
(in thousands)
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Enterprise Funds1
Internal Service Funds1
TOTAL EXPENDITURES
1993-94
$36,383
7,260
5,220
13,805
19,094
6.218
1992-93
$36,752
5,421
4,657
8,275
17,355
5.978
1993-94 over
(under) 1992-93
$(369)
1,839
563
5,530
1,739
240
Change
(1.0)%
33.9
12.1
66.8
10.0
4.0
12.2%
(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 Projects funds. During 1993-94 revenue from all Governmental funds
totaled $62.2 million, an increase of $4.1 million from 1992-93; expenditures totaled $62.7 million,
up $7.6 million from last year. A brief look at these numbers on a fund-by-fund basis is shown
on the following pages.
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. Categories of expenditures include police and
fire services, libraries, parks, street maintenance, and administrative functions.
The following table summarizes General Fund revenues by major category for 1993-94 and 1992-
93:
General Fund Revenues
(in thousands)
Taxes
Licenses & Permits
State Subventions
Charges for Services
Fines & Forfeitures
Interest Income
Other
TOTAL
1993-94
$26,511
1,822
2,862
3,070
231
1,466
2.801
$38.763
1992-93
$26,026
1,725
2,702
2,835
232
2,094
4.095
$39.709
1993-94 over
(under) 1992-93
$ 485
97
160
235
0)
(628)
(1.294)
$ (946)
%
Change
In 1993-94 the City of Carlsbad again felt the effects of the recession in its General Fund
revenues which were down by $946,000 compared to 1992-93 revenues of $39.7 million. General
Fund revenues were originally budgeted for 1993-94 at $39.2 million. Estimated revenues
decreased to $38 million to incorporate State budget transfers and the continued impact of the
recession on property taxes. Actual receipts came in $783,000 above the revised budget
estimate and totaled $38.8 million. Major revenue categories are as follows:
• Property Tax Revenue - $11.1 million
Property taxes decreased $1.5 million from 1992-93. For the second year, the State
mandated a reallocation of property taxes. In 1993-94, the reallocation diverted $1.3
million, or 10% of last year's property tax revenues, from the City to the State. Due
to the two-year reallocation of property taxes, the City's annual property tax revenue
base has been permanently reduced by a total of $2.5 million.
Coupled with the diversion of property tax revenue to the State, for the first time the
City experienced a net decrease in assessed valuation. Property valuation declined
to $6 billion in 1993-94, a 1.1% decrease from last year's $6.1 billion. Declining
property values and reassessment of vacant land and commercial/industrial property
reflected the poor economy in reduced property tax collections.
• Sales Tax Revenue - $10.8 million
Sales taxes increased $1.7 million over 1992-93, the result of a full year of Price Club
operations, more new car sales, and increased sales by large department stores.
Included in these revenues is the addition of $275,000 in Proposition 172 sales taxes
to fund public safety services.
• Transient Occupancy Tax Revenue - $3.2 million
Transient occupancy tax (hotel room tax) revenues increased $54,000 in 1993-94.
The small boost to TOT revenue accrued during the second half of the year,
reflecting a gradual increase in travel and tourism in the area.
• Vehicle License Fee Revenue - $2.6 million
Revenue from vehicle license fees increased $200,000 this year. Vehicle license fees
are paid to the State in lieu of a personal property tax on vehicles and distributed to
the City based on total population. Some of the increase is attributable to the 1.1%
City population increase, and some is due to a one-time only allocation of certain
monies to the City from the State. This allocation was done as part of the State's
budget package.
• Development Related Revenues - $1.8 million
Development related revenues rose $60,000 in 1993-94, with building permits issued
in the last quarter of the year providing the small growth spurt. Declining planning
fees reflect the large inventory of planned development awaiting an economic upturn.
Fewer construction renovations and remodels resulted in the City receiving lower
license taxes on new construction. As the economy recovers, development
continues to improve; a total of 230 building permits were issued during 1993-94,
more than three times as many as the previous year.
8
• Interest Income - $1.5 million
Revenue generated by the City's investments declined $628,000 from 1992-93. The
decrease is due to lower yields on investments and transferring interest on contractor
deposits to another fund.
• Other Revenue - $2.8 million
The $1.3 million decline in other revenue is due to the prior year's reimbursement of
surplus retirement funds.
Total General Fund expenditures are summarized in the following table:
General Fund Expenditures
(in thousands)
1993-94 over %
Category 1993-94 1992-93 (under) 1992-93 Change
General Government $4,641 $4,998
Public Safety 15,747 15,342
Community Development 6,314 6,648
Library and the Arts 2,682 2,555
Community Services 6.999 7.209
TOTAL $36.383 $36.752
The City of Carlsbad adapted to the recession and corresponding declining revenues by
decreasing expenditures. In order to insure that the General fund would end the year balanced,
several actions were taken. The General Fund budget was revised downward to compensate
for the reduction in expected property tax revenues and to match expenses with lowered revenue
estimates. Funding was eliminated or reduced for nine unfilled positions, certain street
maintenance programs were transferred to the gas tax fund, and the Council contingency fund
was significantly reduced. Other expenditure reductions were accomplished by not replacing
many employees as vacancies occurred, reducing the use of consultants and closely monitoring
other operating costs.
Through efforts in every department, the City was able to hold its General Fund expenditures
down to $36.4 million. This equates to $369,000 decrease from 1992-93 expenditures and over
a 7% reduction in General Fund expenses during fiscal year 1991-92. Significant changes in
departmental expenditures were as follows:
• Public Safety
Spending on public safety programs totaled $15.7 million, up $405,000 or almost 3%
from 1992-93. Police field operations, investigations, and technical services plus the
Fire Department's suppression division showed increased expenditures over 1992-93.
In spite of lower General Fund revenues, there has been no decrease in the budgets
or in the level of service provided by the City's public safety departments.
• Community Development
Community Development program spending decreased $334,000 or about 5%.
Because of declining development, Community Development was able to utilize City
staff instead of outside consultants for planning and engineering plan-checking and
studies. Additional savings were achieved through employee attrition.
9
• Library and the Arts
Library and cultural arts spending rose $127,000, or 5% from 1992-93. The library
program experienced increases in staffing costs along with higher liability insurance
and data processing expenses.
• Community Services
Community Services decreased $210,000 or 3% from 1992-93. The new Community
Services department combined city maintenance functions with parks and
recreational activities. Management and administrative savings were achieved with
the combined department. Lower street maintenance costs were recorded in the
General Fund as major street maintenance programs continue to be funded directly
through the gas tax fund.
• General Government
Spending in general government and administrative programs decreased by
$357,000, or 7% from 1992-93 because of risk management staff reassignments,
employee vacancies, and fewer Citywide training programs.
Special Revenue Funds
The City's Special Revenue Funds, which account for the collection and use of special or
restricted revenues, received $7.3 million in total revenue in 1993-94. This is an increase of
$197,000 or almost 3% over last year. Intergovernmental revenues declined in 1993-94 as the
City received fewer police asset forfeiture funds from the sale of seized assets related to drug
activity; however, the City received additional federal funding of the low and moderate income
housing programs. Charges for services rose mainly due to the implementation of the affordable
housing inclusionary fee.
Special Revenue Funds
Revenues
(in thousands)
1993-94 over %
Category 1993-94 1992-93 (under) 1992-93 Change
Taxes $1,508 $1,425 $83 5.8%
Intergovernmental 3,262 3,326 (64) (1.9)
Charges for Services 1,930 1,651 279 16.9
Interest Income 433 541 (108) (20.0)
Other 213 206 7 3.4
TOTAL $7.346 $7.149 $197 2.8%
Expenditures from the Special Revenue Funds support a wide variety of programs and projects.
Some of the major uses of funds include:
• Community service programs such as street lighting, landscaping services for street
trees and median maintenance. Major street maintenance programs include street
sweeping, sidewalk repairs, and street overlay sealants.
10
• Cultural programs, including grants from the California Library Services Act and
California Arts Council, and the Civic Arts program.
• Special programs such as the Police Asset Forfeiture program, Bilingual Library
program, and Adult Literacy program.
• Welfare programs such as the HUD-sponsored Carlsbad Housing Authority rental
assistance program and Senior Nutrition program.
Special Revenue Funds
Expenditures
(in thousands)
1993-94 Over %
Category 1993-94 1992-93 (under) 1992-93 Change
Public Safety $ 605 $ 393 $ 212 53.9%
Housing & Welfare 3,135 2,793 342 12.2
Library & Arts 520 448 72 16.1
Community Services 3.000 1.787 1.213 67.9
TOTAL $7.260 $5.421 $1.839
Spending in Special Revenue Funds totaled $7.3 million in 1993-94, an increase of $1.8 million
or about 34% above 1992-93. Increased expenditures in the Community Services category reflect
increased street maintenance utilizing gas tax funds and higher expenditures in the channel
maintenance special benefit district, while increased HUD housing allocations are shown under
Housing and Welfare.
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, 1994, the total debt payable from non-enterprise sources,
excluding obligations under capital leases, was $31.4 million, comprised of Parking Authority and
Hosp Grove Certificates of Participation, College Boulevard 1915 Act Assessment District bonds
and Redevelopment Tax Allocation bonds. In 1993-94, the City of Carlsbad Housing and
Redevelopment Commission issued $15.5 million in tax allocation bonds. The bonds were used
to advance refund the $12 million 1988 bond issue and to provide money to finance redevelop-
ment activities within the project area. No general obligation bonds are outstanding at June 30,
1994.
Debt Service Funds
Revenues
(in thousands)
1993-94 over %
Category 1993-94 1992-93 (under) 1992-93 Change
Taxes
Interest
TOTAL
11
Debt service revenues totaled $2.2 million, an increase of $114,000 from 1992-93. Higher
assessments were placed on property tax rolls for the College Boulevard Assessment District
since surplus construction funds were utilized for a portion of 1992-93 debt service expenditures.
Debt Service Funds
Expenditures
(in thousands)
Category
Principal
Interest
Other
TOTAL
1993-94 1992-93
$1,645
2,755
257
657
1993-94 over
(under) 1992-93
$(880)
(592)
2.035
$563
Change
(53.5)%
(21.5)
791.8
12.1%
Debt related expenditures rose $563,000 in 1993-94. Lower principal and interest payments are
due to refunding the 1988 Redevelopment Tax Increment bonds and the 1992-93 College
Boulevard bond calls using surplus construction funds. The other category reflects bond costs
and funds placed with an escrow agent for the 1988 Redevelopment bond refunding. The
mandated Redevelopment Agency payment to the State is also shown under debt service
expenditures.
Capital Prelects Funds
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, community facilities district (Mello-Roos) taxes, park in-lieu (park
development) fees, drainage fees, traffic impact fees, bridge and thoroughfare district and other
development fees, county sales tax funds, and general funds earmarked for capital purposes in
the Capital Construction Fund. The capital projects supported by the City's Redevelopment
Agency are also included in this group.
Capital Projects Funds
Revenues
(in thousands)
Category
Taxes
Intergovernmental
Charges for Services
Interest
Other
TOTAL
1993-94
$ 2,043
4,728
4,182
1,876
1.104
1992-93
1993-94 Over
(under) 1992-93
%
Change
12
Increased federal funding for community development block grants account for the rise in
intergovernmental revenue, with grant funding used for several affordable housing projects. More
charges for services reflect the City's higher rate of development and a new fee program
implemented in advance of the proposed Mello-Roos to construct Rancho Santa Fe road. In the
other category are payments made by another agency to fund required road improvements.
Capital Projects Funds
Expenditures
(in thousands)
1993-94 over %
Category 1993-94 1992-93 (under) 1992-93 Change
General Government $ 872 $1,083 $ (211) (19.5)%
Capital Projects 12.933 7.192 5.741 79.8
TOTAL $13.805 $8.275 $5.530 66.8%
Spending on capital projects totaled $13.8 million. Much of the $5.5 million increase is due to
continuing construction on several major street projects. Fiscal year 1993-94 represents the tenth
year of the City's major construction effort which has provided more than $136 million in
improvements. Projects planned for 1994-95 will continue this trend with $51 million of new
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 capital projects under construction or completed during this year include:
• Palomar Airport Road East and El Camino Real - Construction continued on this vital
circulation link in 1993-94. The project includes intersection improvements, road
widening, bicycle lanes, and waterline expansion. These improvements will upgrade
a major circulation system through the industrial-commercial corridor and are a joint
effort of Carlsbad and the neighboring cities of Vista and San Marcos.
• Freeway Interchanges - Expansion of the three Interstate 5 freeway interchanges will
provide improved circulation at critical connection points to City streets. The Palomar
Airport Road/l-5 interchange, built in cooperation with the state transportation agency
(CALTRANS), was completed in 1993. Preliminary design work continues on the La
Costa Avenue freeway interchange, with construction scheduled to begin on the
Poinsettia Avenue interchange in late 1994.
• Streetscape Phase V and Tamarack Avenue - Construction on Carlsbad Village Drive
and Tamarack Avenue was completed in 1993-94. From the freeway, the roads
provide access to the Pacific Ocean and into the Village area. Street widening, storm
drain improvements, and undergrounding of utilities enhance safety and further
beautify City streets.
• Affordable Housing - The City commitment to providing its fair share of affordable
housing is evidenced by the purchase of land for La Terraza, a 344 unit apartment
project. The joint project utilized developer, property tax increment, federal and
private funding. Redevelopment low and moderate set aside funds were also
designated for the Laurel Tree apartments project which is currently under review.
13
• Batiauitos Lagoon - Actual restoration to the wetlands at Batiquitos Lagoon began
in 1994, the culmination of several years of design, planning and obtaining state and
federal agency approvals. The three year wetland restoration project will dredge the
lagoon and restore fish and wildlife habitat. A channel and off-shore jetties will be
constructed to restore full tidal flushing and nesting areas for various species of birds
will be built. The $30 million project is completely funded by the Port of Los Angeles
as mitigation for its recent expansion.
Enterprise Operations
The City of Carlsbad manages water, sewer, solid waste, and the proposed golf course as
Enterprise Fund operations. 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.
The Carlsbad Municipal Water District (CMWD), established as a subsidiary district to the City in
January 1990, is included as an enterprise fund of the City. CMWD and City operations were
merged in 1991-92, with all district positions joining City employment.
Enterprise Funds
Total Operating and Non-Operating Revenues
(in thousands)
1993-94 over %
Category 1993-94 1992-93 (under) 1992-93 Change
CMWD $15,189 $12,268 $2,921
Golf Course 106 87 19
Sewer 5,814 5,413 401
Solid Waste 122 127 (5}
TOTAL $21.231 $17.895 $3.336
Revenue in the enterprise funds totaled $21.2 million, up $3.3 million over 1992-93. Most of the
increase is due to a full year of higher sewer fees and an increase in the water rate necessitated
by the increased cost of purchased water.
Enterprise Funds
Total Operating and Non-Operating Expenses
(in thousands)
1993-94 over %
Category 1993-94 1992-93 (under) 1992-93 Change
CMWD $13,212 $12,304 $ 908 7.4%
Golf Course 778 0 778
Sewer 4,992 4,897 95
Solid Waste 112 154 (42)
TOTAL
14
Expenses in the Enterprise Funds totaled $19.1 million, up $1.7 million over 1992-93. CMWD
expenses rose primarily because of the higher cost of wholesale water and a 6% increase in
water consumption. During this same period the number of accounts provided with water and/or
sewer services grew by 2.7% to 17,768 customers.
The golf course fund incurred $778,000 in expenses in 1993-94. These expenses represent costs
for engineering and design at a location no longer under consideration and are not transferable
to the new golf course site.
In 1989, the City joined with three other agencies to sell $33.5 million of sewer revenue bonds.
These bond funds, along with funding from two additional agencies, financed the expansion of
the Encina Wastewater Facility. The expanded facility should provide sufficient wastewater
treatment capacity to the year 2005. Carlsbad's portion of the outstanding bonds is $12.4 million.
Internal Service Funds
Internal Service Funds are used to account for services provided by a City department to 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 and the activity
for this program is recorded in the Workers' Compensation Self-Insurance Internal Service Fund.
Workers' compensation claims expense for 1993-94 amounted to $713,000 compared to
$639,000 in 1992-93, an increase of $74,000. Claims expense includes all costs incurred by the
City's third party workers' compensation administrator; some of this year's increase in costs is
attributable to legal costs while defending against certain claims. The estimated claims payable
at year-end were $1 million, no change from 1992-93. Working capital at June 30, 1994 is $1.3
million.
The General Liability Self-Insurance Fund was established near the end of 1980-81. Claims
expense and other related costs for 1993-94 totaled $1.1 million, down $33,000 from 1992-93.
Decreased claims more than offset staffing costs charged directly to the fund. The estimated
claims payable at year-end were $617,000, down $254,000. The City is a member of the
California Municipal Insurance Authority risk-management pool which covers most losses
exceeding $500,000, with catastrophic losses covered by additional excess liability insurance.
Working capital totaled $1.7 million at June 30, 1994. Of this amount, $1.5 million is required to
be retained in the fund under the City's contract with the Insurance Authority.
OTHER INTERNAL SERVICE FUNDS
Fleet Management operates a central vehicle maintenance program which services all City
vehicles and other small machinery. Replacement of vehicles, including fire equipment, is an
important component of the program. The City's current policy for funding the replacement of
fleet equipment is to set aside a certain amount of money each year in a replacement fund to
insure that there will be sufficient funds available when the equipment needs to be replaced.
Useful lives of vehicles have been extended over recent years as a cost savings measure;
however, large vehicle purchases are planned for the near future. Vehicle purchases totaled
15
$516,000, an increase of $233,000 over the previous year. Fleet Management annual expenses
during 1993-94 were $1.8 million, and at year-end working capital was $3.5 million.
The City also operates a health insurance internal service fund for collecting premiums, paying
the insurance carrier, and holding reserve funds. At June 30, 1994, total health insurance
working capital totaled $1.3 million.
The City's Data Processing internal service fund collects revenues and expenses related to the
providing of data processing services to the City. At year-end, working capital totaled $617,000.
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 $18.3 million in Agency Funds as of June 30, 1994, compared to $18.7
million at the end of 1992-93. The increase is due to the deposit of an additional $1 million into
the City's deferred compensation plans, offset by a decrease of approximately $1.7 million in
contractors and miscellaneous deposits.
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 $6.5 million in interest on investments in all fund types from instruments yielding
up to 9.12%, compared to earnings of $7.5 million during 1992-93. Funds are invested in various
types of instruments as shown below. At June 30, 1994, the Treasurer had 100% of all available
funds invested. The City's total portfolio at year-end was $136 million. Below is a summary of
cash and investments outstanding as of June 30, 1994:
Amount
Invested
Interest Rates (in millions)
Cash and Deposits 0.00 - 3.59 $ 0.2
Federal Agency Obligations 3.83 - 8.70 47.1
Treasury Issues 3.88 - 6.93 13.8
Corporate Notes 5.45 - 9.00 32.0
Investment Pools 4.26 - 6.45 27.4
Mutual Funds 1.10-10.50 14.4
Guaranteed Investment Contracts 8.57 - 9.12 1.4
As required by State law, the City Council adopted a comprehensive investment policy specifying
the type and term of City investments. The policy's objective is to maintain the level of
investment of all idle funds as close to 100% as possible and to invest in instruments which will
provide the highest return without endangering the basic requirements of safety and liquidity.
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.
In 1991-92 state law allowed the recalculation of the City's limit with new inflation factors. Using
population growth in the City of Carlsbad and growth in State per capita income allowed the
Gann limit for 1993-94 to increase to $100 million. Appropriations of "proceeds of taxes" was only
$30.2 million, thus allowing the City a healthy margin of $70 million.
CITY OF CARLSBAD
PROPOSITION 4 SPENDING LIMIT
VS. APPROPRIATION OF PROCEEDS OF TAXES
MILLIONS OF DOLLARS
120
100 -
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
OF TAXES H SPENDING LIMIT
17
Economic Outlook
The general outlook for Carlsbad over the next few years is hazy due to the lingering recession
and the threat of additional State actions which may further reduce the City's revenue base.
State and regional economic forecasts show a slow recovery with continued depressed levels
of construction spending over the next several years in the commercial/industrial area. The
forecast for the San Diego County residential housing market shows a substantial increase
beginning in fiscal year 1995-96. Increased affordability, pent-up demand, and a healthier
employment outlook are projected to fuel the rise in new housing construction.
The City will strive to maintain the quality and variety of services which have come to be expected
by the residents and businesses of Carlsbad. However, as demonstrated during the past few
years, the recession has dramatically impacted the City's ability to improve or increase programs
provided to its citizens despite the continuing demand for such services. In 1993-94, actual
spending in the General Fund declined $3.5 million from amounts expended two years ago. For
the past few years, our capital improvement program has deferred or phased certain projects due
to declining developer fees for construction of those projects and less current revenue for the
operation of the facilities.
Despite the setbacks caused by the recession and the State's budget balancing strategies, the
long-term outlook for Carlsbad is still very optimistic. The City projects a slow recovery in the
local economy and minimal revenue increases over the next few years. The City's long range
capital improvement program anticipates the construction of more than $500 million in
improvements between now and buildout. Our program includes new parks, libraries, fire
stations, streets, water and sewer lines, 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 could easily out-pace the City's ability to pay for services.
The City's Growth Management Program holds the key to the timing of many of the develop-
ments that will support the City through fees and taxes. This program is designed to insure that
new development occurs in conjunction with careful planning of infrastructure and service needs.
An outgrowth of this program is a long range capital improvement program which covers the
current year through buildout of the City. The City's Growth Management Program was
established by a vote of the citizens in 1986. Under this program, development occurs only
when infrastructure improvements required to serve the development are financed and
constructed as a part of the development. Previously, facilities were scheduled to meet maximum
population expectations; now projects are phased to more closely match incremental growth
demands. Standards have been established in eleven areas including circulation, libraries, fire
protection, parks, drainage, water, sewers, and open space.
The comprehensive Growth Management Financing Program is an important part of growth
management. This program links 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 Districts,
1913/1915 Act Assessment Districts and fee programs to finance facilities concurrent with
demand without overburdening the land or home owner.
The proposed Lego family theme park, expansion of retail sales facilities, the addition of new auto
dealerships, major discount warehouse outlets, several small commercial centers, and continued
18
plans for the construction of major shopping centers as well as the construction of a major hotel
in southern Carlsbad are expected to provide the much needed tax base to finance the growing
service needs. Further, future commercial/industrial development in the Palomar Airport Industrial
Park area will add to Carlsbad's economic health.
The City continues to support its tourist industry with financial support to the Chamber of
Commerce Convention and Visitors Bureau. Realizing that the Pacific Ocean beaches play an
important role, Council continues to appropriate funds to keep the state beach parking free to
all beach users and is constructing additional restroom facilities.
With the completion of the update of the General Plan, City staff will now be working on an
update to the plan's fiscal impact analysis. This program provides a tool to evaluate financial
implications of current and future City policies and decisions as outlined in the General Plan. The
results of the update will be presented to Council in the future.
Certificate of Award for Outstanding Financial Reporting
The California Society of Municipal Finance Officers (CSMFO) presented a Certificate of Award
for Outstanding Financial Reporting to the City of Carlsbad for its comprehensive annual financial
report for the fiscal year ended June 30, 1993. The City has received the award since 1985. We
believe our current report continues to conform to the program requirements.
Acknowledgments
This report has been a joint effort by many people from many different areas of responsibility.
The dedicated efforts of Cheryl Allen, Assistant Finance Director, and all of the accounting staff,
deserve full credit for the preparation and contents of this report. We appreciate Karen Walz and
Dean Votava of Conrad & Associates for the professional way in which the audit of this financial
report was conducted. It has been a pleasure to work with the Conrad & Associates staff
throughout this period.
Respectfully submitted,
LISA HILDABRAND
Finance Director
19
FALLBROOK
CARLSBAD ESCONDDO
'•gigQ \SAN MARCOS
RAMONA
LA JOUA
SAN OECO
NATIONAL CITY
CHUA VISTA
IMPERIAL BEACH
20
CITY OF CARLSBAD
ELECTED CITY OFFICIALS
Claude A. Lewis, Mayor
Margaret Stanton, Mayor Pro Tem
Ramona Finnila, Council Member
Ann J. Kulchin, Council Member
Julianne Nygaard, Council Member
Aletha L Rautenkranz, City Clerk
James M. Stanton, City Treasurer
ADMINISTRATION AND DEPARTMENT HEADS
Raymond R. Patchett, City Manager
Frank Mannen, Assistant City Manager
James F. Elliott, Financial Management Director
Martin Orenyak, Community Development Director
David Bradstreet, Community Services Director
Ron Ball, City Attorney
Ruth Fletcher, Purchasing Officer
Lisa Hildabrand, Finance Director
Michael Holzmiller, Planning Director
Lloyd Hubbs, City Engineer
Ann Jensen, Human Resources Director
Clifford Lange, Library Director
Dennis Van Der Maaten, Fire Chief
Robert Vales, Police Chief
CHAIRPERSONS, COMMISSIONS AND BOARDS
Laurie Batter Arts Commission
Lu Ann Hall Beach Erosion Committee
Paul Vanderpool Cable Television Foundation
Tom Erwin Citizens Committee to Study Growth
Peggy Savary Design Review Board
Gordon Bizieff Historic Preservation Commission
Edward Scarpelli Housing Commission
Claude A. Lewis Housing and Redevelopment Commission
Emmett J. Woodward, Jr. Library Board
Frank Alshire Parking Authority
Courtney Heineman Parks and Recreation Commission
Jim Page Personnel Board
Peggy Savary Planning Commission
George Heard Senior Citizen Commission
Emmett J. Woodward, Jr. Serra Cooperative Library System Advisory Board
Ed Juchniewicz Sister City Committee
Bud Green Traffic Safety Commission
Richard Allen Underground Utility Advisory Committee
Leo Louis Water Commission
21
I '
*~~ ~~ ~~
i ----
' PARKING
. AUTHORITY —
' CARLE TELE VISION '
~j FOUNDATION -
f~" PARKS AND |
_ RECREATION —
I COMMISSION I
' ----- 'I ----- 1' SENIOR CITIZEN '
. COMMISSION j"
~| COMMISSION i
I !
I ,
| LIBRARY BOARD |_
"I OP TRUSTEES •
r ' PERSONNEL '_
~j BOARD -
WATER '
COMMISSION 7
_
I - j
ELECTORATE
ASSISTANT
CITY MANAGER
|
I
I
as!CARLSBAD
MUNICIPAL
WATER DISTRICT
HUMAN
RESOURCES
INFORMATION
SYSTEMS
LIBRARY
COMMUNITY
SERVICES
FINANCIAL
MGMT. DIR.FIRE
I
POLICE J
FINANCE
PURCHASING
RISK
MANAGEMENT
• coMMrrrEE •
ASSISTANT TO
CITY MANAGER
' OPEN SPACE '_
"j COMMITTEE i
\ CITIZENS' |
_ COMMITTEE TO -irruDY GROWTH
r__
' PLANNING ' I
COMMISSION — — — «
•L]
LJi COMMBSION i
I HISTORIC I
PRESERVATION —I
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I 1
COMMUNITY
DEVEL.DIR.
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BUILDING
ENGINEERING
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REDEVELOPMENT
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|
6/94
ELECTED COUNCIL APPOINTED
•OARDS AND COMMISSIONS
CITY OF CARLSBAD ORGANIZATION CHART STAfF REPORTING
RE'•WAR'
BOARDS, COMMISSIONS AND COMMITTEES
VOTERS
CITY
COUNCIL
CO
Arts
Commission
Design
Review
Board
Parking
Authority
Serra Cooperative
Library System
Advisory Board
Beach
Erosion
Committee
Historic
Preservation
Commission
Parks and
Recreation
Commission
Sister
City
Committee
Cable
Television
Foundation
Housing
Commission
Personnel
Board
Traffic
Safety
Commission
Citizens
Committee to
Study Growth
Housing and
Redevelopment
Commission
Planning
Commission
Underground
Utility Advisory
Committee
Library
Board
of Trustees
Senior
Citizen
Commission
Water
Commission
California Society of
^Municipal finance Officers
Certificate of Award
Outstanding financialReporting 1992-93
Presented to
City of Carts bad
Ihis certificate is issued in recognition of muting professional standards and criteria in reporting which reflect a high (eveCof
in the annualfinancialstatements and in the underlying accounting system from which the reports were prepared.
February 28,1994
Chair, Professional & Techni^J Standards Committee
President
'Dedicated to Ijfcettence in MunkipaC financial'Management
OON IV\D CERTIFIED PUBLIC ACCOUNTANTS
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
1100 MAIN STREET. SUITE C
IRVINE, CALIFORNIA 92714
(714)474-2020
The Honorable Members of City Council
City of Carlsbad, California
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying general purpose financial statements of the City of
Carlsbad, California as of and for the year ended June 30, 1994, as listed in the table of
contents. These general purpose financial statements are the responsibility of the
management of the City of Carlsbad, California. 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 as of June 30,
1994, and the results of its operations and the cash flows 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 funds, and individual account group
financial statements and schedules listed in the 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 stated in all material respects in relation to the general purpose financial
statements taken as a whole. The scope of our audit did not include the supplemental
statistical schedules listed in the table of contents and we do not express an opinion on them.
September 23, 1994
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
CITY OF CARLSBAD
Combined Balance Sheet -All Food Types and Account Groups
June 30. 1994
Assets and Other Debits
Assets:
Cash and investments (note 3)
Deferred compensation investments (note 16)
Receivables:
Loans
TaxesAccounts, net
Special assessmentsOther
Accrued interest
Due from other funds (note 4)
Due from other governments
Advances to other funds (note 5)
Inventory
Prepaid expenditures
Restricted assets:Cash and investments (note 3)
Accrued interest
Property, plant and equipment, net
(notes 6 and 7)Other debits:
Amount available in debt service funds
Amount to be provided for retirement of
general long-term debt
Total assets and other debits
Liabilities. Eouitv and Other Credits
Liabilities:Accounts payable
Accrued wages payable
Accrued interest payable
Due to other funds (note 4)Advances from other funds (note 5)
Due to other governments
Estimated claims payable
Assessments payable
Current portion of long-term debt (note 10)
Deposits payable
Deferred compensation payable (note 16)
Current liabilities payable from restricted
assets - accrued interest payable
Deferred revenue
Bonds payable (note 10)
Special assessment debt with governmental
commitment (note IQf
Obligations under capital leases
(notes 8 and 10)
Loan payable (note 10)
Certificates of participation (note 10)
Installment purchase agreement (note 10)
Total liabilities
Equity and Other Credits:
Investment in general fixed assets
Contributed capital (note 12)
Fund balance:
Reserved (note 11)
Unreserved (note 11)
Retained earnings:
Reserved (note 11)
Unreserved (note 11)
Total equity and other credits
Total liabilities, equity and
other credits
Governmental Fund Tvocs
General
Special
Revenue
Debt
Service
218,395
S26.030.641 10.9S4.199 11.49S.83S
$850.728
2.021.359
-_
245.603
79,953
682.740
19.702
4.550
4,171,101 6,955.000
7,682,303
11,300,600
2,404,212
7,521.989
4,538,210
2.625
18.982.903 9.926.201 4.540.835
S26.030.641 10.954.199 11.49S.83S
See accompanying notes to general purpose financial statements.
26
Capital
Projects
$12.429.930 9.200,598 4.446,280 40.309.533
_
990,022
155.622
-25,064
387,336711,484
88,775
11,219,823
22,585
107,955
23.141
29.703_
-128.3801,199,592
46,435
-
-
_
22,109
-6.955,000
-72,446
-— .
-
-
_
1,459
173.644
-
-525,455
-515,678
1,700,000
-
43.225.769
536,444
21,268
1.228.336
12.919.823
913,000
91.434
7.047.738 1.027.998 6.955.000 15.710.305
3,276,079
24.239,385
27.515.464
43.225.769
Proprietary Fund Tvues
Enterprise
Internal
Service
Fiduciary Fund Type
Agency
Account Croups
General
Fixed
Assets
General
Long-Ten
Debt
Totals
35.822,053 10,710.092
10,055
3,182,582
538,171
209,924
1,045.990
224,897
5,194,737
9,646
100,933,085
147.171.140
6,192
159,906
83,783
3,208,881
14.168.8S4
11,181,758
6.991,043
860
116,478
18.290.139
65,545.234
65.S45.234
4,540,835
27.579.555
32.120.390
124.100,244
6.991,043
107,955
1,047,646
3,547,743
6.955,000
25.064
1,928,172
2,121,000
1,696,878
12,919,823
331,265
218,395
5,194.737
9,646
169,687,200
4,540,835
27.579.555
369.002.201
1,541,005
326,429
209,924
1,107.265
321,681
472,033
2,070,778
900,357
9,571,189
11.774.729
28.295.390
426,591
58,806
1,982,422
8,124
556,331
4,368,867
6,365,774
6,991,043
2.467.819 18.290.139
16,570,000
7,290,000
705,390
7.555,000
32.120.390
3,608,495
2,507,815
556,331
2,121,000
12,919,823
19,702
1,982,422
4,368,867
1,107,265
7,605,005
6,991,043
472,033
13.288,313
16.570,000
7,290,000
705,390
900,357
17,126,189
11.774.729
111.914.779
81,432,414
3,625,085
33.818.251
118.875.750
6,944,688
4.756.347
11.701.035
65,545,234
65.545.234
65,545,234
88,377,102
17,900,804
43,064,599
3,625,085
38.574.598
257.087.422
147.171.140 14.168.854 18.290.139 6S.S45.234
27
32.120.390 369.002.201
28
CITY OF CARLSBAD
CoBbined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 1994
Revenues:
Taxes
Licenses and permits
Intergovernmental
State subventions
Charges for services
Fines and forfeits
Interest income
Interdepartmental services
Contributions from property owners
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Community development
Housing and welfare
Library and the arts
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Payment to refunded bond escrow
agent (note 10)
Debt issuance costs
State mandated payment
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Payment to refunded bond escrow
agent (note 10)
Proceeds of refunding bondsProceeds of bonds, net of discount
Total other financing
sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures and
other financing uses
Fund balances at beginning of year
Residual equity transfers in
Residual equity transfers out
Fund balances at end of year
General
$26,511,005
1,822,275
28,384
2.862,479
3,069,804
231,454
1,465,717
2,393.576
-378.771
Special
Revenue
1,508,186
-3,262,525
-1,929,747
-433,302-
-212.646
Debt
Service
1,975,577
--
-
-
-221,226-
—-
Capital
Projects
2.042,901
—4,728,399-
4,182,263
—1,875.882-
344,851
758.770
Totalsf Mefflorand"" Only)
32,037,669
1.822,275
8,019.308
2.862,479
9,181,814
231,454
3.996.127
2,393,576
344,851
1.350.187
38.763.465 7.346.406 2.196.803 13.933.066
871,680
12,933,253
4,641,421
15,747,024
6,313,757
2,681,940
6,999,321
604,628
3,135,491
520,119
3.000,052
mm
-
765,000
2,163,228
1,709,777
489,113
92.472
-
-
36.383.463 7.260.290 5.219.590 13.804.933
2.380.002 86.116 (3.022.7871 128.133
f1.171.0551 24.025 2.961.968 2.391.290
62.239.740
5,513,101
16,351,652
6,313,757
3,135,491
3,202,059
9,999,373
12,933,253
765,000
2,163,228
1,709,777
489,11392.472
62.668.276
(428.5361
(1.171,055)
24,025 1,351,757 6,689,934
(2,610.517) (4.298,644)
(10,964,372)
10,964,372
4.220.728
8,065,716
(8.080,216)
(10,964,372)
10.964,372
4.220.728
4.206.228
1,208,947
17,833,956
-
(60.0001
$18.982.903
110,141
9,757,035
60,000
(9751
9.926.201
(60,819) 2,519,423
4,601.654 25.036.041
31,736
(71.7361
4. 540. 835 27. 515,, 4.64
3,777,692
57,228,686
91.736
(132.7111
60.965.403
See accompanying notes to general purpose financial statements.
29
CITY OF CABLSBAD "
Combined Statement of Revenues. Expend itnrefTand
Changes in Fund Balance - Budget and Actual (Budgetary Basis) -All Governmental Fund Types
Year Ended June 30, 1994
General Fund
Revenues:
Taxes
Licenses and permits
Intergovernmental
State subventions
Charges for services
Fines and forfeitsInterest income
Interdepartmental servicesMiscellaneous
Total revenues
Budget
$25,505,900
1.725,000
3,073,500
3,391,000
250,000
1,700,000
1.995,000
339.681
37.980.081
Actual on
Budgetary
Basis
26,511.005
1,822,275
28,384
2,862,479
3,069,804
231,454
1,465,717
2,393.576
378.771
38.763.465
Variance-Favorable
(Unfavorable)
1.005,105
97,275
28,384
(211,021)
(321,196)
(18,546)
(234,283)
398,576
39.090
783.384
Expenditures:Current:
General government
Public safety
Community development
Housing and welfare
Library and the arts
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Payment to refunded bond escrow agentDebt issuance costs
State mandated payment
Total expenditures
Excess (deficiency) of revenuesover (under) expenditures
6,094.08315,978.177
7.136,094
2,774,0497,590,073
4,902,58615,796,515
6.614,288
2,707.864
7,247,656
1,191,497
181,662
521,806
66.185
342.417
39.572.476 37.268.909 2.303.567
(1.592.395) 1.494.556 3.086.951
Other financing sources (uses):
Operating transfers in
Operating transfers out
Payment to refunded bond escrow agent
Proceeds of refunding bonds
Proceeds of bonds, net of discount
Total other financing sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures and
other financing uses
Fund balances at beginning of year
Residual equity transfers in
Residual equity transfers out
Fund balances at end of year
(1,171,055) (1,171,055)
(1.171.055) (1.171.055)
(2,763,450) 323,501
17.833.956 17.833,956
- (60.000)
$15.070.506 18.097.457
3,086,951
(60.000)
3.026.951
See accompanying notes to general purpose financial statements.
30
Special Revenue Funds Debt Service Funds Totals (Memorandum Onlv)
Budaet
1,450,000
3,604,670
1,715,440
301,500
117.000
7.188.610
794,445
3.257,488
868,534
4,541,223
-
9.461.690
(2.273.080)
24,025
24.025
(2,249,055)
9,757,035
-
Actual on Variance-
Budgetary FavorableBasis (Unfavorable) Budset
1,508,186
3,262,525
1,929,747
433,302
212.646
7.346.406
784,825
3,141,777
695,995
4,121,846
-
8.744.443
(1.398.037)
24,025
24.025
(1,374,012)
9.757,035
60,000
(975)
58,186
(342,145)
214,307
131,802
95.646
157.796
9,620
115,711
172,539
419,377
-
717.247
875.043
875,043
-
60,000
(975)
1,280.000
60,000
1.340.000
_
859.550
1,709,777
489,113
92.500
3.150.940
(1.810.940)
474,777
(2.610,517)
(10,964,372)
10,964,372
4.220.728
2.084.988
274,048
1,787,772
-
Actual on Variance-
Budgetary Favorable
Basis (Unfavorable) Budeet
1.288,269
61,391
1.349.660
-
885.375
1.709,777
489.113
92.472
3.176.737
(1.827.077)
474.777
(2,610.517)
(10,964,372)
10,964,372
4.220.728
2.084.988
257.911
1.787.772
:
8,269 28.235,900
1,725,000
3,604,670
3,073,500
5,106,440
250,000
1,391 2,061,500
1.995,000
456.681
9.660 46.508.691
6.094,083
16,772.622
7.136.094
3,257,488
3.642,583
12,131,296
(25,825) 859,550
1,709,777
489,113
28 92.500
(25.797) 52.185.106
(16.137) (5.676.415)
498,802
(3,781,572)
(10,964,372)
10.964,372
4.220.728
937.958
(16,137) (4,738,457)
29.378,763
-
Actual on Variance-Budgetary Favorable
Basis (Unfavorable)
29,307,460
1,822,275
3,290,909
2,862,479
4.999.551
231.454
1.960.410
2.393,576
591.417
47.459.531
4.902,586
16,581,340
6,614,288
3,141,777
3,403,859
11.369,502
885,375
1,709,777
489,113
92.472
49.190.089
(1.730.558)
498.802
(3.781.572)
(10.964.372)
10.964,372
4.220.728
937.958
(792.600)
29.378,763
60,000
(60.975)
1,071.560
97,275
(313.761)
(211,021
(106.8891
(18,546
(101,0901
398,576
134.736
950.840
1,191,497
191,282
521,806
115.711
238,724
761,794
(2sT825)
28
2.995.017
3.945.857
-
3.945.857
-
60,000
(60.975)
7.507.980 8.442.048 934.068 2.061.820 2.045.683 (16.137) 24.640.306 28.585.188 3.944.882
31
CITY OF CARLSBAD
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings -
All Proprietary Fund Types
Year Ended June 30, 1994
Operating revenues:
Water sales
Sewer service charges
Other charges for services
Contributions from other
government agencies
Miscellaneous
Total operating revenues
Operating expenses:
Plant operations
Purchased water
Depreciation and amortization
Fuel and supplies
Claims expense
General and administrative
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Interest income
Interest expense and fees
Gain (loss) on sale of property
Property taxes
Miscellaneous income (expense)
Amortization of issuance costs
Total nonoperating revenues
(expenses)
Income before
operating transfers
Operating transfers in
Net income
Retained earnings at beginning
of year
Retained earnings at end of year
Enterprise
$12,550,905
4,718,689
660,925
215,642
328.437
1,575,214
7,269,101
2,343,504
5.334.922
16.522.741
1.951.857
1,979,847
(1,635,574)
(96,315)
744,209
(744,878)
(61.776)
185.513
2,137,370
2,137,370
Internal
Service
5,536,183
470.738
18.474.598 6.006.921
607,733
434,204
3,551,809
1.623.556
6.217.302
(210.381)
571,493
(960)
570.533
360,152
14.500
374,652
Totals
(Memorandum Only)
12,550,905
4,718,689
6,197,108
215,642
799.175
35.305.966 4.381.695
$37.443.336 4.756.347
24.481.519
1,575,214
7,269,101
2,951,237
434,204
3,551,809
6.958.478
22.740.043
1.741.476
2,551,340
(1,635,574)
(97,275)
744,209
(744,878)
(61.776)
756.046
2,497,522
14.500
2,512,022
39.687.661
42.199.683
See accompanying notes to general purpose financial statements.
32
CITY OF CARLSBAD
Combined Statement of Cash Flows-
All Proprietary Fund Types
Year Ended June 30, 1994
Internal Totals
Enterprise Service (Memorandum Only)
Cash flows from operating activities:
Operating income (loss) $ 1,951,857 (210,381) 1,741,476
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 2,343,504 607,733 2,951,237
Decrease (increase) in receivables (606,467) 409 (606,058)
Decrease (increase) in due from other
governments (18,592) - (18,592)
Decrease (increase) in inventory 4,699 13,278 17,977
Increase (decrease) in deposits payable 49,022 - 49,022
Increase (decrease) in accounts payable 285,303 129,097 414,400
Increase (decrease) in accrued wages
payable 15,579 13,128 28,707
Increase (decrease) in loans payable 942,840 - 942,840
Increase (decrease) in estimated claims
payable - (230.002) (230.002)
Net cash provided by operating
activities 4.967.745 323.262 5.291.007
Cash flows from noncapital financing
activities:
Transfers from other funds - 14.500 14.500
Cash flows from capital and related
financing activities:
Purchases of property, plant and equipment (4,048,196) (586,620) (4,634,816)
Principal payment on bonds (1,004,630) - (1,004,630)
Interest and other fees paid on bonds (1,650,361) - (1,650,361)
Property taxes received 744,209 - 744,209
Capital contributions received 1.060.729 - 1.060.729
Net cash provided by (used in)
capital and related financing
activities (4.898.249) (586.620) (5.484.869)
Cash flows from investing activities:
Investment in restricted assets 206,995 - 206,995
Interest on investments 1.969.588 572.980 2.542.568
Net cash provided by investing
activities 2.176.583 572.980 2.749.563
Net increase in cash and cash equivalents 2,246,079 324,122 2,570,201
Cash and cash equivalents at beginning
of year 33.575.974 10.385.970 43.961.944
Cash and cash equivalents at end of year $35.822.053 10.710.092 46.532.145
Supplemental schedule of noncash
investing and financing activities $ 1.554.860 472.748 2.027.608
See accompanying notes to general purpose financial statements.
33
34
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
Year Ended June 30, 1994
(1) Summary of Significant Accounting Policies
The City of Carlsbad, California (Carlsbad) was incorporated on July 16, 1952.
Carlsbad operates under a Council-Manager form of government and provides the
following services: general government, public safety, community development,
housing and welfare, library, and community services.
The accounting policies of Carlsbad and its component units 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
As required by generally accepted accounting principles, these financial
statements present the City of Carlsbad (the City) and its component units,
entities for which the City is considered to be financially accountable. The City
is considered to be financially accountable for an organization if the City
appoints a voting majority of that organization's governing body and the City is
able to impose its will on that organization or there is a potential for that
organization to provide specific financial benefits to or impose specific financial
burdens on the City. The City is also considered to be financially accountable for
an organization if that organization is fiscally dependent upon the City (i.e., it is
unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt
without approval from the City). In certain cases, other organizations are
included as component units if the nature and significance of their relationship
with the City are such that their exclusion would cause the City's financial
statements to be misleading or incomplete.
Based upon the above criteria, the component units of the City are the Housing
Authority of the City of Carlsbad, the Parking Authority of the City of Carlsbad,
the City of Carlsbad Public Improvement Corporation, the Carlsbad
Redevelopment Agency and the Carlsbad Municipal Water District (the District).
Since the City Council serves as the governing board for these component units,
all of the City's component units are considered to be blended component units.
Blended component units, although legally separate entities, are in substance,
part of the City's operations and so data from these units are reported with the
interfund data of the primary government. Only the Parking Authority, the City
of Carlsbad Public Improvement Corporation, and the Carlsbad Redevelopment
Agency issue separate component unit financial statements. Upon their
completion, the financial statements of these component units can be obtained at
City Hall.
35
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
(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 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 based 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 specific 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.
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 based upon determination
of net income and capital maintenance. The following are the City's proprietary
fund types:
36
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
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:
Agency Funds
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.
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 'r.r all fixed assets of the City other
than those accounted for in the proprietary funds.
General Long-Term 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.
37
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
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 historical net worth of the fund. Operating
statements for proprietary fund types report increases (revenues) and
decreases (expenses) in total historical net worth.
Fiduciary fund types are custodial in nature (assets equal liabilities) and do
not involve measurement of results of operations. Fiduciary fund assets
and liabilities are accounted for on the modified accrual basis of accounting.
Governmental fund types use the modified accrual basis of accounting.
Revenues are recognizable 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 some 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. Tax liens attach annually as of 12:01 a.m. on the first day of
March in the fiscal year for which the taxes are levied. 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 expenditures are recorded when the related fund liability is
incurred. Principal and interest on general long-term debt are recorded as
fund liabilities when due or when amounts have been accumulated in the
debt service fund for payments to be made early in the following 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.
38
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(e) Cash and Investments
Cash includes amounts in demand and time deposits. Investments are
stated at cost or amortized cost, except for deferred compensation assets
which are shown at market value.
The City maintains a cash and investment pool that is available for use by
all funds. 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 cost and are
recorded as expenses on a first-in, first-out basis 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 compensated absences recorded
at June 30, 1994, all balances are expected to be paid within the following
12 months. For proprietary funds, the cost of vacation is recorded as a
liability when earned.
(h) Risk Management
The City accounts for its general liability, health insurance, and workers'
compensation activities in internal service funds. The funds are responsible
for collecting premiums from other City funds and departments and paying
claims settlements and insurance premiums. Interfund premiums are based
on the insured fund's claims experience. Incurred but not reported claims
are accrued at year-end if material.
(i) Unbilled Services
Unbilled water revenue of the enterprise funds 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 historical cost in the general fixed assets account
group. In the case of gifts or contributions, such assets are recorded at fair
market value at the time received.
39
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
Fixed assets consisting of certain improvements other than buildings,
including roads, bridges, curbs and gutters, streets and sidewalks, and
drainage systems, have not been capitalized. Such assets normally are
immovable and of value only to the City. Therefore, the objective of
stewardship for capital expenditures is satisfied without recording these
assets.
In the general fixed assets account group, construction in progress 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,
(k) Property. Plant and Equipment - Proprietary Funds
Property, plant and equipment used by proprietary funds is stated at cost or
estimated historical cost. Contributed fixed assets are recorded at
estimated fair market value at the time received. Net interest costs are
capitalized on projects during the construction period.
Depreciation is charged to operations using the straight-line method based
on the estimated useful life of the related asset. The estimated useful life
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 3 - 20
(1) Deferred Revenue
The deferred revenue in the General Fund represents interest due, but not
available, on advances to the Carlsbad Redevelopment Agency and funds
received to be applied towards future construction.
The deferred revenue in the Debt Service Funds represents special
assessments receivable.
The deferred revenue in the Capital Projects Funds relates to funds
received and to be applied toward future construction.
The deferred revenue in the Enterprise Funds relates to deposits or in-kind
prepayments for services to be rendered (e.g., sewer installation, etc.).
40
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
(m) Statement of Cash Flows - Proprietary Funds
For purposes of the statement of cash flows, the Proprietary Funds consider
all highly liquid investments with an original maturity of three months or
less when purchased and all amounts invested in a cash and investment pool
to be cash equivalents.
(n) Advances to Other Funds
Interfund loan receivables are reported as advances and are offset equally
by a fund balance reserve which indicates that they do not constitute
expendable available financial resources and therefore are not available for
appropriation.
(o) Residual Equity Transfers
Residual equity transfers represent non-routine transfers of equity between
funds, including amounts transferred to reflect the opening, closing, or
reclassification of funds.
(p) Total Columns
Total columns on the combined statements are captioned "Memorandum
Only" to indicate that they are presented only to facilitate financial
analysis. Data in these columns do not present financial position, results of
operations, or cash flows 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.
41
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(2) Budgetary Data. (Continued)
The City Manager is authorized to make transfers of appropriated amounts within a
fund for up to $25,000. Revisions that alter the total appropriations of any fund must
be approved by the City Council with the exception of budget adjustments which
involve offsetting revenues and expenditures. The City Manager is authorized to
increase or decrease an appropriation for a specific purpose where the appropriation is
offset by unbudgeted revenue which is designated for said specific purpose. Quarterly
budget reviews are conducted each year and 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. All
appropriations lapse at fiscal year-end unless City Council takes formal action in the
form of a resolution to continue the appropriation into the following fiscal year.
For purposes of budgetary presentation, actual generally accepted accounting
principles (GAAP) expenditures have been adjusted to include encumbrances
outstanding and designations for continuing appropriations at year-end. Annual
budgets are adopted for the General, Special Revenue and Debt Service Funds except
for the following: College Boulevard, Hosp Grove COPs, and Parking Authority.
Accordingly, the revenues and expenditures for these funds have been excluded from
the budget basis financial statements. 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.
The following schedule is a reconciliation of the budgetary and GAAP fund balances:
Special Debt
General Revenue Service
Fund Funds Funds
Fund balances-budgetary basis $18,097,457 8,442,048 2,045,683
Encumbrances outstanding
at year-end 454,996 260,104
Fund balances designated for
continuing appropriations 430,450 1,224,049
Fund balances of nonbudgeted funds - - 2.495.152
Fund balances - GAAP basis $18.982.903 9.926.201 4.540.835
42
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(3) Cash and Investments
Each participating fund's portion of the City's cash and investment pool is displayed on
the combined balance sheet as "Cash and investments." This category also includes
cash and investments that 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
agreements, certificates of deposit with national and state licensed or chartered banks
or federal or state savings and loan associations, medium-term corporate notes with a
maximum five-year maturity rated in the three top rating categories, money market
and mutual funds whose portfolios consist of one or more of the foregoing investments,
the County Treasurer's investment pool, 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 government securities with a market value of it least 10 percent in excess of the
City's deposit or 50 percent in excess of the deposit as collateral in mortgage pools.
Cash and investments held by the City at June 30, 1994 consisted of the following:
Cash on hand (petty cash) $ 6,402
Deposits 178,239
Investments 136.101.383
$136.286.024
Cash and investments are classified in the accompanying combined balance sheet as
follows:
Cash and investments $124,100,244
Deferred compensation investments 6,991,043
Restricted assets:
Cash and investments 5.194.737
$136.286.024
43
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
Cash and Investments. (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, 1994.
Category Bank Carrying
Form of Deposit 1 2 3 Balance Amount
Demand deposits $145.116 1.172.711 - 1.317.827 178.239
Total deposits $145.116 1.172.711 - 1.317.827 178.239
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 counterparty'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 the
Local Agency Investment Fund, County Treasury Investment Pool and 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.
Category Carrying Market
Form of Investment 1 2 3 Amount Amount
U.S. Government agency
obligations
U.S. Treasury securities
Corporate notes
$45
13
32
,482
,704
,011
,493
,991
,107
1,561,
109,
-
873 -
706 -
-
47
13
32
,044
,814
,011
,366
,697
,107
46
13
31
,094,346
,785,376
.788.400
$91.198.591 1.671.579 - 92,870,170 91,668,122
State investment pool (LAIF) 9,383,467 9,383,467
County investment pool 18,020,800 18,020,800
Guaranteed investment contracts 1,382,394 1,382,394
Mutual funds 14.444.552 14.444.552
Total investments $136.101.383 134.899.335
44
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(4) Due To and From Other Funds
The following table shows amounts due from funds within the City to other funds
within the City at June 30, 1994:
Due to
Due from:
Special Revenue Funds:
Section 8 Housing
Authority Fund
State Grants Fund
Senior Nutrition Fund
Capital Projects Funds:
Community Development
Block Grants Fund
Enterprise Funds:
Carlsbad Municipal Water
District
Total
General
Fund
Special
Revenue
Low and
Moderate
Income
Hous ing
Enterprise
Sewer Fund Totals
$667,136
420
15,184
28,744 1,199,592
$711.484 1.199.592
209.924
209.924
667,136
420
15,184
1,228,336
209.924
2.121.000
(5) Advances To and From Other Funds
The following table shows amounts advanced from funds within the City to other
funds within the City at June 30, 1994:
Advances From
General Fund
Capital Projects Funds:
General Capital
Construction Fund
Advances To
Capital Projects Funds:
Park Development Fund
Planned Local Drainage
Facilities Fund
Redevelopment Project Fund
Capital Projects Funds:
Public Facilities
Construction Fund
Traffic Impact Projects Fund
Total advances
Amount
$ 2,550,000
300,000
8.369.823
11.219.823
950,000
750.000
1.700.000
$12.919.823
45
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(6) General Fixed Assets
A summary of changes in the general fixed assets account group is as follows:
Balance at Balance at
July 1. 1993 Additions Deletions June 30. 1994
Land $25,946,668 2,090,876 - 28,037,544
Buildings 27,405,136 21,000 - 27,426,136
Improvements 2,819,444 253,000 (1,247) 3,071,197
Furniture and equipment 4,906,206 698,308 (500,806) 5,103,708
Construction in progress 1.940.319 2.331.206 (2.364.876) 1.906.649
Total $63.017.773 5.394.390 (2.866.929) 65.545.234
Construction in progress in the general fixed assets account group is composed of the
following:
Expended
Project Balance at
Authorization June 30. 1994 Committed
Library - South Carlsbad $1,138,729 1,099,803 38,926
Public Art - South Carlsbad
Library 170,000 90,656 79,344
Poinsetta Park 4,087,000 506,849 3,580,151
Larwin Park (22.3 acres) 190,000 173,331 16,669
Public Art - Seawall 30,000 15,000 15,000
Other 193.000 21.010 171.990
$5.808.729 1.906.649 3.902.080
There is no future financing commitment required on any of the above noted
construction projects.
(7) Property. Plant and Equipment - Proprietary Funds
A summary of proprietary fund type property, plant and equipment at June 30, 1994 is
as follows:
46
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(7) Property. Plant and Equipment - Proprietary Funds. (Continued)
Enterprise Internal Service
Land, water rights, rights-of-way $ 2,136,815
Buildings and improvements 5,817,620
Wells, reservoirs and dams 17,324,132
Transmission and distribution lines 33,053,370
Sewer, sewer lines and wells 26,214,671
Sewage treatment facility 30,714,426
Equipment and vehicles 1,810,226 6,066,016
Construction in progress 6.209.694 -
123,280,954 6,066,016
Less accumulated depreciation (22.347.869) (2.857.135)
Property, plant and equipment, net $100.933.085 3.208.881
Enterprise Fund interest is charged to expense as incurred, except for interest related
to borrowings used for construction, which is capitalized net of interest earned on
construction funds borrowed. Interest capitalization ceases when the construction
project is substantially complete and placed in service. No interest costs were
capitalized in the Enterprise Funds during 1994. Total interest costs incurred and
interest earned on related interest-bearing investments acquired with proceeds of the
tax-exempt borrowings were $1,619,885 and $113,010, respectively.
The Enterprise funds had various construction contracts in progress at June 30, 1994
with an estimated cost to complete of approximately $614,000. There is no future
financing required on any of these projects.
(8) Obligations Under Capital Leases
In August 1987, the City entered into 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 with a final payment of
$117,264 in fiscal year 1998. The present value of these minimum lease payments
equals $705,390 after deducting amounts representing interest of $115,461. The City's
leasehold interest of $1,602,160 has been recorded in the City's general fixed asset
account group.
(9) Obligations Under Operating Leases
In June 1988, the Carlsbad Redevelopment Agency entered into an agreement to lease
a parking lot on State Street from a private party. The lease requires monthly rental
payments for twenty years. Total annual rent payments are $46,517 for fiscal year
ending June 30, 1995 with annual cost of living adjustments required and market value
adjustments required every 5 years after fiscal year ending June 30, 1988. The future
minimum rental payments have been calculated with a 6% annual cost of living
adjustment.
47
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(9) Obligations Under Operating Leases. (Continued)
In May 1990, the Carlsbad Redevelopment Agency entered into an agreement to lease a parking
lot on Carlsbad Village Drive from a private party. The lease requires annual rental payments
for five years. Total annual payments are $43,500 for fiscal year ending June 30, 1995. The
Redevelopment Agency has a purchase option on the property which it intends to exercise at the
end of the fifth year.
The following is a schedule by year of future minimum rental payments required under the
operating leases at June 30, 1994:
Year ending June 30.
1995
1996
1997
1998
1999
Thereafter
Total minimum lease payments
$90,017
49,308
52,266
55,402
58,726
715.333
$1.021.052
(10) Long-Term Debt
The following is a summary of changes in the principal balance of long-term debt for the year
ended June 30, 1994:
Principal
Balance at
July 1. 1993 Additions
Principal
Balance at
Reductions June 30. 1994
General long-term debt
account group:
Bonds
Special assessment debt with
governmental commitment
Obligations under capital
leases
Certificates of participation
Total general
long-term debt
$12,460,000 15,495,000 (11,385,000) 16,570,000
7,580,000 - (290,000) 7,290,000
874,288
7.830.000
(168,898) 705,390
(275.000) 7.555.000
$28.744.288 15.495.000 (12.118.898) 32.120.390
Enterprise funds:
Certificates of participation $11,370,000
Installment purchase agreement 12,689,800
Loan payable -942.840
(730,000) 10,640,000
(274,630) 12,415,170
- 942.840
Total enterprise funds $24.059.800 942.840 (1.004.630) 23.998.010
48
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt. (Continued)
Long-term debt at June 30, 1994 is comprised of the following issues:
Balance at
June 30 1994
General Long-Term Debt:
1969 Carlsbad Parking Authority Revenue Bonds,
principal due in amounts of $125,000 on October
1 of each year through 1995, interest payable
on October 1 and April 1 at 6.4% per annum,
payable from the General Fund $ 250,000
1981 Carlsbad Parking Authority Revenue Bonds,
principal due in amounts ranging from $100,000
to $150,000 on February 1 of each year through
2001, interest payable on August 1 and
February 1 at 8.0% per annum, payable from the
General Fund 825.000
Parking Authority revenue bonds 1.075.OOP
1993 Carlsbad Housing and Redevelopment
Commission Tax Allocation Bonds, principal due
in amounts ranging from $240,000 to $1,000,000
on September 1 of each year through 2024.
Interest payable on March 1 and September 1 at
rates varying from 5.25% to 5.30% per annum 15.495.000
Total bonds payable 16,570,000
1986 College Boulevard Assessment District Bonds,
principal due in amounts ranging from $335,000 to
$865,000 on September 2 of each year through 2006,
interest payable on September 2 and March 2 at
rates varying from 7.4% to 8.0% per annum 7,290,000
1988 Hosp Grove Certificates of Participation,
principal due in amounts ranging from $295,000
to $815,000 on August 1 of each year through
2008, interest payable on August 1 and February 1
at rates varying from 6.0% to 7.6% per annum 7,555,000
Obligations under capital leases (note 8) 705.390
Total General Long-Term Debt $32.120.390
49
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt. (Continued)
Enterprise Fund Long-Term Debt:
1988 Carlsbad Municipal Water District Certifi-
cates of Participation, principal due in vary-
ing amounts ranging from $775,000 to $1,425,000
on May 1 of each year through 2004, interest
payable on May 1 and November 1 each year at
rates varying from 6.6% to 7.3% per annum $10,640,000
Encina Financing Joint Powers Authority (EFJPA)
Installment Purchase Agreement, principal due in
varying amounts ranging from $289,782 to
$1,049,276 on August 1 of each year from 1994
through 2014, interest payable on February 1 and
August 1 each year at rates varying from 6.2% to
6.875% per annum 12,415,170
In August of 1993, the Carlsbad Municipal Water
District (the District) entered into a loan
agreement with the State Water Resources Control
Board authorizing a loan of $2,429,240 for the
design and construction of phase 1 of the District's
water reclamation project. Loan funds are disbursed
based on project costs incurred to date. As of
June 30, 1994, the District has received loan funds
of $942,840. The loan is payable in twenty annual
payments of $62,894 due on November 30 of each year,
commencing November 30, 1994. The effective interest
rate on the loan is 2.9%. 942.840
Subtotal enterprise funds 23,998,010
Less unamortized discount
and issuance costs (644,470)
Less current portion (1.107.265)
Total Enterprise Fund Long-Term Debt $22.246.275
Reserve funds of approximately $5,165,000 are required to be held in debt service
funds to secure the payment of principal and interest on the outstanding debt issues.
Debt service requirements to maturity for general long-term debt (excluding
obligations under capital leases) are as follows:
50
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt. (Continued)
1995
1996
1997
1998
1999
2000-2004
2005-2009
2010-2024
Parking
Authority
Revenue Bonds
$ 303,000
287,000
150,000
167,000
157,000
309,000
Tax
Allocation
Bonds
815,340
1,049,040
1,046,178
1,047,659
1,048,352
5,221,575
5,211,426
15.528.640
Assessment
District
Bonds
898,350
897,107
898,413
901,929
897,715
4,502,149
2,703,601
Certificates
of
Participation Total
866,873
866,733
859,795
860,985
859,880
4,281,360
4,251,200
2,883,563
3,099,880
2,954,386
2,977,573
2,962,947
14,314,084
12,166,227
15.528.640
Less amounts
representing
interest
Total general
long-term debt
1,373,000 30,968,210 11,699,264 12,846,826 56,887,300
(298.000) (15.473.210) (4.409.264) (5.291.826) (25.472.300)
$1.075.000 15.495.000 7.290.000 7.555.000 31.415.000
Debt service requirements to maturity for the enterprise funds are as follows:
1995
1996
1997
1998
1999
2000-2004
2005-2009
2010-2015
Water District
Certificates of
Participation
$ 1,526,248
1,525,098
1,524,822
1,524,982
1,525,122
7,633,282
Encina
Installment
Purchase
Agreement
1,108,498
1,108,730
1,107,542
1,106,820
1,106,426
5,517,192
5,485,770
6.528.862
Loan
Payable
62,894
62,894
62,894
62,894
62,894
314,470
314,470
299.412
Total
2,697,640
2,696,722
2,695,258
2,694,696
2,694,442
13,464,944
5,800,240
6.828.274
Less amounts
representing
interest
Total Enterprise
Fund debt
15,259,554
(4.619.554)
$10.640.000
23,069,840
(10.654.670)
12.415.170
1,242,822
(299.982)
942.840
39,572,216
(15.574.206)
23.998.010
At June 30, 1994, the City was in compliance with all significant debt covenants.
51
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt. (Continued)
On August 15, 1993, the Carlsbad Redevelopment Agency issued $15,495,000 in tax
allocation bonds to finance redevelopment activities within the Village Redevelopment
Project Area and to advance refund $11,185,000 of outstanding 1988 series tax
allocation bonds. The bonds were sold at a discount of $309,900.
Proceeds of $10,964,372 plus an additional $1,709,777 of 1988 series monies were used
to purchase U.S. government securities. Those securities were deposited in an
irrevocable trust with an escrow agent to provide for all future debt service payments
on the 1988 series bonds. As a result, the 1988 series bonds are considered to be
defeased and the liability for those bonds has been removed from the general
long-term debt account group.
As a result of the advance refunding of the 1988 series bonds, the Agency reduced its
future cash payments by almost $1,500,000 and obtained an economic gain (difference
between the present values of the debt service payments on the old and new debt) of
approximately $364,000.
In November 1988, the Carlsbad Municipal Water District (the District) issued
$14,370,000 in Certificates of Participation. A portion of the proceeds was used to
refund $12,000,000 of the outstanding 1984 Certificates of Participation (1984 COPs).
The District deposited funds in an irrevocable trust with an escrow agent to provide for
all future debt service payments on the 1984 COPs. In May 1994, all outstanding 1984
COPs were called.
The College Boulevard Assessment District Bonds were issued under the provisions of
the Improvement Bond Act of 1915. The bonds were issued to finance the 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 for 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.
The College Boulevard Assessment District has delinquencies in the amount of
$606,089 for assessments due in fiscal years 1990-91 through 1993-94. Although the
delinquencies are 20% of the total assessment, only one major property owner is
delinquent and all principal and interest payments were made without use of the
reserve fund. The City's suit to foreclose on the property, which was delayed because
of bankruptcy actions, is expected to occur in early 1995. Reserve funds will be used
for the September 1994 principal and interest payment.
52
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(11) Fund Balances/Retained Earnings
The following is a summary of reserved and unreserved fund balances and retained earnings as
of June 30, 1994:
Governmental Fund Types
Special Debt Capital
Fund Balances General Revenue Service Projects
Reserved for:
Loans receivable $ - 107,955
Inventory 22,585
Prepaid expenditures - 218,395
Debt service - - 4,538,210
Advances to other funds 7,073,722 - - 1,700,000
Low and moderate income housing - 1,817,758
Rent interruption insurance 131,000 - -
Encumbrances 454.996 260.104 - 1.576.079
7.682.303 2.404.212 4.538.210 3.276.079
Unreserved:
Designated for approved
capital projects $ - 921,628 - 17,424,967
Designated for continuing
appropriations 430,450 1,224,049
Designated for arbitrage - - 2,625
Designated for sales tax payment 413,000 - -
Designated for city hall remodel 46,000 - -
Designated for parking bonds 800,000 - -
Designated for golf course 1,200,000
Undesignated 8.411.150 5.376.312 - 6.814.418
11.300.600 7.521.989 2.625 24.239.385
Total fund balances $18.982.903 9.926.201 4.540.835 27.515.464
Proprietary Fund Types
Internal
Retained Earnings Enterprise Service
Reserved for:
Debt service $ 3,344,524
Rate stabilization and other 280.561 -
3,625,085
Unreserved 33.818.251 4.756.347
Total retained earnings $37.443.336 4.756.347
53
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(11) Fund Balances/Retained Earnings. (Continued)
Reserves for loans receivable, inventory, prepaid expenditures and advances to other
funds, net of accrued interest recorded as deferred revenue, are established to show
that certain assets are already committed to other purposes and are not available for
discretionary expenditures.
Reserves for debt service represent resources legally restricted to the payment of
long-term debt principal and interest maturing in future years.
Reserves for low and moderate income housing represent monies required to be
expended on low and moderate income housing.
Reserves for rent interruption insurance represents monies required to be set aside
under a bond indenture.
Reserves for encumbrances represent commitments related to unperformed contracts
for services and undelivered goods.
Reserves for rate stabilization and other represent amounts restricted to offset future
water rate increases and other uses.
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, 1994, the Capital Projects - Redevelopment Agency Fund had a deficit
fund balance of $5,696,542. The deficit is expected to be funded by property tax
increments received in the future. The General Liability Self-Insurance Fund had
deficit retained earnings of $213,847. This deficit is expected to be recovered by
future interfund premiums. The Golf Course Fund had a deficit in retained earnings of
$394,905. This deficit is expected to be recovered by future user charges. The Capital
Projects - Community Development Block Grant Fund had a deficit fund balance of
$1,199,592. The deficit is expected to be recovered from the proceeds of a Section 108
Loan.
(12) Changes in Contributed Capital
Internal
Enterprise Service
Contributed capital at June 30, 1993 $79,628,166 6,471,940
Additions:
Cash 1,027,498
Fixed assets 776.750 472.748
Contributed capital at June 30, 1994 $81.432.414 6.944.688
(13) Risk Management
The City is exposed to various risks of loss related to theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
54
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(13) Risk Management. (Continued)
Effective January 1, 1991, the City became a participating member of the California
Municipal Insurance Authority (CMIA) risk-management pool. Under this program, the
pool provides coverage for up to a maximum of $5,000,000 per claim with a
self-insured retention to be provided by the City in the amount of $500,000 per claim.
In addition, excess general liability insurance coverage up to $10,000,000 is provided
for catastrophic losses. Under the terms of the agreement with CMIA, the City must
maintain an unencumbered portion of fund equity equal to $1,500,000. At June 30,
1994, unencumbered fund equity for the General Liability Self-Insurance Fund was
approximately $1,700,000.
(14) Joint Ventures
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 Sanitation District, the Vallecitos Water District (formerly the San Marcos
County Water District) and the Encinitas Sanitary District. The Encina Wastewater
Authority (the Authority) 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, 1994, the Cities and Districts have the following approximate
ownership interest:
City of Carlsbad 25%
City of Vista 22%
Leucadia County Water District 20%
Vallecitos Water District 20%
Encinitas Sanitary District 5%
Buena Vista Sanitation District 8%
The latest available financial statements of the Authority, dated June 30, 1993, showthe following:
Total assets $129,128,651
Total liabilities 3.560.503
Fund balance $125.568.148
The Authority does not recognize net income or loss. Net operating expenditures in
excess of users' assessments are treated as accounts receivable on the Authority'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 Authority totaled $185,242 in fiscal year 1993.
The City accounts for its portion of the Facility as a fixed asset of the Sewer
Enterprise Fund.55
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(14) Joint Ventures. (Continued)
Encina Financing Joint Powers Authority:
The Encina Financing Joint Powers Authority (the Authority) was created on February
1, 1989 between the City of Carlsbad, the City of Vista, the Buena Vista Sanitation
District and the Leucadia County Water District. The primary purpose of the
Authority is to issue revenue bonds in order to finance the expansion of the Facility.
Repayment of the bonds will be accomplished through payments made by each member
of the Authority pursuant to installation purchase agreements. The individual
agreements set forth the purchase price and specify the debt service requirements for
each member.
Encina Financing Joint Powers Authority. (Continued)
The Authority is governed by a Board of Directors, which consists of one director
appointed by each member.
In August 1989, the Authority issued $33,500,000 of revenue bonds and executed
installment purchase agreements for approximately the same amount. The following is
a table of the outstanding balance owed as of June 30, 1994 by each member and their
approximate share in the additional capacity.
Member
Buena Vista Sanitation District
City of Carlsbad
Leucadia County Water District
City of Vista
installment
Balance
$ 6,473,063
12,415,170
7,793,895
6.092.872
$32.775.000
Approximate
Share
19.75%
37.88%
23.78%
18.59%
100.00%
The installment balances are secured by a pledge of the revenues from each member's
wastewater system, net of a deduction for maintenance and operating costs.
Significant covenants within the agreements require the members to maintain
insurance on the facility, and establish wastewater rates which are sufficient to pay
the operating costs and debt service on the bonds and which will result in net revenues
equal to at least 1.1 times the annual installment payments due.
The City's share in the accounts of the Authority is recorded in the Sewer Enterprise
Fund. The expansion of the Facility is shown as an addition to the fixed assets of the
Sewer Enterprise Fund.
56
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(IS) 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, 1994, the payroll for employees covered by
the PERS was $21,484,348. Total payroll for the same period was $24,210,223.
All full-time employees are eligible to participate as members of PERS. Benefits vest
after an employee has been a member of the plan for five years. Employees are
eligible to retire after ages 50 to 60 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 twelve
consecutive months average. 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
employee contributions are made by the City on behalf of the employees.
The amount shown below as the "pension benefit obligation" (PBO) is a standardized
disclosure measure of the present value of the 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.
The PBO was computed as part of actuarial valuations performed as of June 30, 1991.
Significant actuarial assumptions used in the valuation include (a) a rate of return on
the investment of present and future assets of 8.75 percent a year compounded
annually (8.5 percent as of June 30, 1990), (b) projected salary increases of 4.5 percent
a year compounded annually (5 percent as of June 30, 1990), attributable to inflation,
(c) additional projected salary increases of 2.5 percent (2.75 percent for Carlsbad's
safety employees) a year (2 percent as of June 30, 1990 for all employees), attributable
to seniority/merit, and (d) no post-retirement benefit increases. The impact on
current year contributions from changes in actuarial assumptions is not available.
The total overfunded (assets in excess of) pension benefit obligation applicable to
Carlsbad and District employees was $477,659 and $32,558, respectively, at June 30,
1993 (the date of the latest actuarial valuations) is as follows:
57
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(15) Retirement Plan. (Continued)
Carlsbad District Total
Pension benefit obligation:
Retirees and beneficiaries
currently receiving benefits
and terminated employees not
yet receiving benefits $21,959,239 1,315,403 23,274,642
Current employees:
Accumulated employee
contributions including
allocated investment earnings 16,308,719 696,467 17,005,186
Employer financed-vested 18,356,020 - 18,356,020
Employer financed-nonvested 1.461.749 - 1.461.749
Total pension benefit
obligation 58,085,727 2,011,870 60,097,597
Net assets available for benefits
at cost 58.563.386 2.044.428 60.607.814
Overfunded (assets in
excess of) pension
benefit obligation $ 477.659 32.558 510.217
Changes in pension benefit
obligation from last year
resulted from the following:
Changes in benefit provisions $ -
Changes in actuarial assumptions (1.167.972) 63.532 (1.104.440)
Total $(1.167.972) 63.532 1.104.440
The market value of the net assets available for benefits as of June 30, 1993 was
$67,874,964 and $2,430,825 for Carlsbad and the District, respectively.
Of the total change in the PBO for Carlsbad and the District from the prior year, none
of the changes resulted from changes in benefit provisions or actuarial assumptions.
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefit
cost method. It takes into account those benefits that are expected to be earned in the
future as well as those already 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. PERS 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.
58
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(15) Retirement Plan. (Continued)
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, 1994, based on an actuarial valuation as of June 30, 1993, were as follows:
Carlsbad
Miscellaneous
Enrol ovees
Required normal cost
contribution
Amortization of the
unfunded actuarial
accrued liability
Total required
contributions
Actual employer
contributions
Contributions made by
the City on behalf
of employees
Total actual
contributions
The following is a three-year
progress made in accumulating
Contributions
$2,009,598
87.517
S2.097.1J5,
$1,126,849
970.266
$2.097.115
Safety
Enrol ovees
Covered Covered
Pavroll Contributions Pavroll
14.47% 1,
.63%
J5.10% 2.
8.11% 1,
6.99%
isjm 2^
794,268
222.238
016.506
338,145
678.361
016.506
trend information which gives an indicati
sufficient assets to pay benefits when due:
Carlsbad District
1993 1992 1991 1993 1992
23.62%
2.92%
26.54%
17.61%
8.93%
26.54%
on of the
1991
Net assets available
for benefits as a
percentage of pension
benefit obligation 100.8% 94.6% 93.2% 101.6% 101.4% 105.6%
Unfunded (assets in excess
of) pension benefit
obligation as a
percentage of annual
covered payroll (2.1%) 13.0% 17.2% - - (7.3)%
Actuarially determined
employer contributions
as a percentage of
annual covered payroll 11.5% 12.4% 10.8% - - 7.5%
59
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(15) Retirement Plan. (Continued)
Ten-year trend information is not currently available from the California Public Employees
Retirement System; therefore, only the available information is presented.
Required Supplementary Information
Analysis of Funding Progress
(Unaudited)
Carlsbad
Actuarial
Valuation
as of
June 30
Net Assets
Available
for Benefits,
at Cost
Pension
Benefit
Obligation
Percentage
Funded
1987
1988
1989
1990
1991
1992
1993
$23,855,500
28,385,300
32.905,600
38,955,507
44,473,550
50.976,400
58,563,300
26,158,700
30,249,400
35,221,700
41,495,649
47,736,607
53,871,700
58,085,700
91.2%
93.8%
93.4%
93.9%
93.2%
94.6%
100.8%
Unfunded
Pension Benefit
Obligation
2,303,200
1,864,100
2,316,100
2,540.142
3,263,057
2,895,300
(477,700)
Unfunded Pension
Annual Benefit Obligation
Covered as a Percentage of
Pavroll Annual Covered Pavroll
12,147,900
13,170,000
15, 378, 600
16,071.500
18,983,745
22,249.000
22,238,900
19.0%
14.2%
15. IX
15. 8%
17.2%
13.0%
(2.1%)
Required Supplementary Information
Analysis of Funding Progress, Continued
(Unaudited)
District
Actuarial Net Assets
Valuation Available
as of for Benefits,
June 30 at Cost
Pension
Benefit
Obligation
Percentage
Funded
1987
1988
1989
1990
1991
1992
1993
$ 823,110
981,451
1,217,447
1,463,415
1,705,889
1,924,540
2,044,420
749,880
941,218
1,141,723
1,374,798
1,616,014
1,897,110
2,011,870
109.8%
104.3%
106.6%
106.4%
105.6%
101.4%
101.6%
Overfunded
Pension Benefit
Obligation
73.230
40,233
75,724
88,617
89,875
27,430
32,560
Annual
Covered
Payroll
825,380
960,250
1,026,090
1,047,044
1,229,551
Over funded Pension
Benefit Obligation
as a Percentage of
Annual Covered Pavroll
8.9%
4.2%
7.4%
8.5%
7.3%
(16) 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 substantially all full-time
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.
60
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(16) 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.
(17) Post-Retirement Health Care
In addition to the pension benefits described in Note 15, the District, in accordance
with the District's Administrative Code, provides post-retirement health care benefits
to its full-time employees (including their dependents) who voluntarily retire after the
age of 50 with no less than 5 years of service and whose age combined with years of
service equals 70 or more. Currently, four retirees meet these eligibility requirements
and are receiving benefits.
The District is to pay 100% of the premiums for health insurance which is to be
coordinated with Medicare and other benefits provided by federal and state law, when
available, to the extent it reduces the cost of insurance premiums. Expenditures for
post-retirement health care benefits are funded on a pay-as-you-go basis.
Expenditures of approximately $11,600 were charged to expense for post-retirement
health care costs during 1994. Based on an actuarial valuation performed as of
November 1991, the District's liability for the current and past service costs of these
benefits is approximately $1,600,000.
61
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(18) Segment Information for Enterprise Funds
The City maintains four enterprise funds that provide water, sewer and other services.
Segment information for the year ended June 30, 1994 is as follows:
Operating revenues
Operating expenses:
Depreciation and
amortization
Other
Operating income (loss)
Nonoperating income
(expenses), net
Net income (loss)
Contributed capital:
Beginning balance
Current year additions
Ending balance
Property, plant and
equipment:
Additions
Deletions
Net working capital
Debt payable from
operating revenues
Total assets
Total liabilities
Total equity
Carlsbad
Municipal
Water
District
$13,566,565
Golf
Course Sewer
Solid
Waste Totals
4,822,533 85,500 18,474,598
1,134,601
11.151.956
1,280,008
696.667
$ 1.976.675
—
(672.176)
(672.176)
1,208,575
2.915.325
698,633
123.729
822.362
328
111.956
(26,784)
37.293
10.509
2,343,504
14.179.237
1,951,857
185.513
2.137.370
$40,169,911 2,425,190 37,033,065
- 986.655817.593
$40.987.504 2.425.190 38.019.720
14.343.995
$ 602.122
16.246 746.446
778.111 1.150.007
79,628,166
1.804.248
81.432.414
5.106.687
2.530.240
$16.973.792 2.002.392 18.009.862 69.289 37.QSS.33S
$11.582.840 12.415.170 23.998.010
$73,215,341 2,030,285 71,849,720 75,794 147,171,140
13.374.857 - 14.915.339 5.194 28.295.390
$59.840.484 2.030.285 56.934.381 70.600 118.875.750
62
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(19) Special Assessment Bonds Without Government Commitment
As of June 30, 1994, the City has four series of Assessment District Bonds outstanding
in the amount of $22,137,347. 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. Reserve funds of approximately $2,376,000 are held to secure
payment of principal and interest on the outstanding bonds.
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.
(20) Mortgage Revenue Bonds
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. In May 1993, the City issued $15,920,000 in multi-family
Housing Revenue Bonds. The purpose of these bonds was to refund the La Costa
Apartments 1985 Series A bonds.
The balance of the revenue bonds outstanding under these programs as of June 30, 1994
is $29,676,941.
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 subdivision 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.
63
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(20) Mortgage Revenue Bonds. (Continued)
On September 6, 1994, the Carlsbad Housing and Redevelopment Commission, a
component unit of the City of Carlsbad, issued $15,500,000 in revenue bonds. The
bonds were issued to refund the Carlsbad Housing and Redevelopment Commission
$16,215,000 Multifamily Housing Revenue Bonds Series 1985 B (Seascape Village
Project). The original developer defaulted on the debt and the bond insurer,
Continental Casualty Company (CCC) foreclosed. Since January 1989, debt service has
been paid by CCC to the bondholders. In December 1993, CCC sold the project to
Seascape Apartments, Inc., a corporation formed by CCC to take over the project.
The refunding was completed at the request of the new property owner and resulted in
more favorable rents for low income tenants and an annual administration fee paid to
the Redevelopment Agency. The variable interest rate is established weekly.
(21) Commitments and Contingencies
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.
In May 1993, the City of Carlsbad entered into an agreement with the San Diego
Association of Governments (SANDAG), whereby SANDAG will loan up to $10,000,000
of TransNet local funds to the City of Carlsbad on a reimbursement basis. The funds
are to be used by the City of Carlsbad to accelerate the implementation of the
Poinsettia Lane and La Costa Avenue/I-5 Interchange Improvement Project. No money
was borrowed under this agreement during the year ended June 30, 1994.
(22) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 1994 exceeded appropriations of the following
funds:
Variance-
Favorable
Budget Actual (Unfavorable)
Special Revenue Funds:
Community Development Block Grant $ - 26,209 (26,209)
Debt Service Fund:
Redevelopment Bonds 3,150,940 3,176,737 (25,797)
64
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(23) Participation in San Diego Association of Governments (SANDAG)
The City is a member of the San Diego Association of Governments (SANDAG), a joint
powers agreement for the purpose of engaging in regional cooperative comprehensive
planning, to assist the Member Agencies, and to provide a regional reviewing
organization for certain federal and state grant projects.
SANDAG is currently comprised of 18 incorporated Cities from the San Diego region
and the County of San Diego.
Summary financial information for the year ended June 30, 1993 is presented as follows:
Total general fixed assets $ 1,562,345
Total other assets 468,428,541
Total general long-term debt 581,527,548
Total other liabilities 16,509,072
Total fund equity 453,481,814
Total revenues 183,022,585
Total expenditures/expenses 319,719,554
Total other financing sources (uses) 180,894,171
Net increase (decrease) in fund
balance/retained earnings 44,197,202
(24) Subsequent Events
On September 6, 1994, the City of Carlsbad redeemed the outstanding 1983 Single
Family Residential Mortgage Revenue Bonds. The purpose of the program was to
provide affordable housing to first-time homebuyers with average and below average
income levels. The outstanding bonds were paid using the proceeds from the sale of
the mortgages with the remaining amount of approximately $585,000 paid to the City.
Utilization of the City proceeds will be decided by the Council in 1994-95.
65
66
GENERAL FUND
The general fund is used to account for resources traditionally associated with government
which are not required legally or by sound financial management to be accounted for in
another fund.
67
CITY OF CARLSBAD
General Fund
Schedule of Revenues - Budget and Actual
(Budgetary Basis)
Year Ended June 30, 1994
Taxes:
Property taxes
Sales and use taxes
Transient lodging taxes
Franchise taxes
Real property transfer taxes
Trailer coach in-lieu tax
Total taxes
Licenses and permits:
Construction permits
Business licenses
License tax on new construction
Other
Total licenses and
permits
Intergovernmental:
Grant revenue
State subventions:
Vehicle license fees
Property tax reimbursements
Total state subventions
Charges for services:
Planning fees
Building department fees
Engineering fees
Weed abatement fees
Ambulance fees
Park and recreation fees
Other
Total charges for
services
Budget
$11,073,500
10,157,400
3,200,000
925,000
150,000
25.505.900
1.725.000
2,773,500
300.000
3.073.500
Actual on
Budgetary
Basis
11,123,765
10,840,115
3,153,084
1,183,310
209,251
1.480
26.511.005
1.822.275
28.384
2,628,592
233.887
2.862.479
Variance-
Favorable
(Unfavorable)
50,265
682,715
(46,916)
258,310
59,251
1.480
1.005.105
250,000
975,000
200,000
300.000
365,571
1,093,827
44,496
318.381
115,571
118,827
(155,504)
18.381
97.275
28.384
(144,908)
(66.113)
(211.021)
750,000
225,000
1,000,000
-
220,000
800,000
396.000
459,509
275,156
656,108
29,607
342,829
747,043
559.552
(290,491)
50,156
(343,892)
29,607
122,829
(52,957)
163.552
3.391.000 3.069.804 (321.196)
(Continued)
68
CITY OF CARLSBAD
General Fund
Schedule of Revenues - Budget and Actual
(Budgetary Basis)
(Continued)
Budget
Fines and forfeits:
Vehicle code fines
Other
Total fines and forfeits
Interest income
Interdepartmental services:
Engineering
Legal
Other
Total interdepartmental
services
Mi seellaneous:
Sales of maps and publications
Sales of property
Reimbursed expenditures
Other
Total miscellaneous
Total revenues
250,000
250.000
1.700.000
450,000
1.545.000
1.995.000
339.681
339.681
$37.980.081
Actual on
Budgetary
Basis
227,559
3.895
231.454
1.465.717
732,699
13,824
1.647.053
2.393.576
43,089
15,044
206,517
114.121
378.771
38.763.465
Variance-
Favorable
(Unfavorable)
(22,441)
3.895
(18.546)
(234.283)
282,699
13,824
102.053
398.576
43,089
15,044
206,517
(225.560)
39.090
783.384
69
CITY OF CARLSBAD
General Fund
Schedule of Expenditures - Budget and Actual
(Budgetary Basis)
Year Ended June 30, 1994
General government:
City council
City manager
City clerk
Visitors' bureau
Community assistance
Hiring center
City attorney
Finance
City treasurer
Audit
Purchasing
Human resources
Information systems
Contingency
Other
Total general government
Public safety:
Police protection
Fire protection
Total public safety
Community development:
Community development
Engineering
Planning
Building inspection
Total community
development
Library and the arts:
Library
Arts program
Total library and the arts
Community services:
Administration
Parks and recreation
Street maintenance
Building maintenance
Traffic signal maintenance
Street lighting
Total community services
Total expenditures
Budeet
$ 168,786
776,583
32,680
261,604
114,668
80,000
419,080
1,062,635
101,500
68,255
364,648
815,625
403,361
166,436
1.258.222
6.094.083
8,926,237
7.051.940
Actual on
Budgetary
Basis
160,614
764,008
21,554
261,604
108,668
76,967
374,444
1,013,941
79,595
56,577
347,492
708,894
390,025
-
538.203
4.902.586
8,777,008
7.019.507
15.978.177
888,229
3,210,648
2,122,767
914.450
7.136.094
2,516,932
257.117
2.774.049
760,834
3,562,395
1,446,813
1,413,120
378,911
28.000
7.590.073
$39.572.476
15.796.515
720,009
3,124,837
2,066,763
702.679
6.614.288
2,457,967
249.897
2.707.864
718,686
3,508,021
1,360,261
1,349,353
283,335
28.000
7.247.656
37.268.909
Variance-
Favorable
(Unfavorable)
8,172
12,575
11,126
6,000
3,033
44,636
48,694
21,905
11,678
17,156
106,731
13,336
166,436
720.019
1.191.497
149,229
32.433
181.662
168,220
85,811
56,004
211.771
521.806
58,965
7.220
66.185
42,148
54,374
86,552
63,767
95,576
342.417
2.303.567
70
CITY OF CARLSBAD
General Fund
Comparative Schedule of Expenditures
Year Ended June 30, 1994
General government:
City council
City manager
City clerk
Visitors' bureau
Community assistance
Hiring center
City attorney
Finance
City treasurer
Audit
Purchasing
Human resources
Information systems
Other
Total general government
Public safety:
Police protection
Fire protection
Total public safety
Commun i ty deve1opmen t:
Community development
Engineering
Planning
Building inspection
Total community development
Library and the arts:
Library
Arts program
Total library and the arts
Community services:
Administration
Parks and recreation
Street maintenance
Building maintenance
Traffic signal maintenance
Street lighting
Total community services
Total expenditures
1993
Actual
$ 153,747
839,359
20,878
246,205
111,000
76,498
362,318
860,207
71,101
41,275
329,101
579,733
359,784
946.681
4.997.887
8,590,925
6.750.721
15.341.646
605,552
3,374,023
1,906,501
762.082
6.648.158
2,316,029
238.835
2.554.864
793,719
3,199,318
1,781,753
1,130,429
275,924
28.000
7.209.143
$36.751.698
1994
Actual
160,166
744,963
21,554
222,702
108,668
76,967
370,109
993,163
79,595
26,823
338,910
571,196
388,402
538.203
4.641.421
8,760,470
6.986.554
15.747.024
705,990
3,004,240
1,901,060
702.467
6.313.757
2,447,865
234.075
2.681.940
716,951
3,439,334
1,350,169
1,186,463
278,404
28.000
6.999.321
36.383.463
Variance-
Increase
(Decrease)
6,419
(94,396)
676
(23,503)
(2,332)
469
7,791
132,956
8,494
(14,452)
9,809
(8,537)
28,618
(408.478)
(356.466)
169,545
235.833
405.378
100,438
(369,783)
(5,441)
(59.615)
(334.401)
131,836
(4.760)
127.076
(76,768)
240,016
(431,584)
56,034
2,480_
(209.822)
(368.235)
71
CITY OF CARLSBAD
General Fund
Comparative Schedule of Revenues
Year Ended June 30, 1994
1993
Actual
Taxes:
Property taxes
Sales and use taxes
Transient lodging taxes
Franchise taxes
Real property transfer taxes
Trailer coach in-lieu tax
Total taxes
Licenses and permits:
Construction permits
Business licenses
License tax on new construction
Other
Total licenses and permits
Intergovernmental:
Grant revenue
State subventions:
Cigarette tax
Vehicle license fees
Property tax reimbursements
Total state subventions
Charges for services:
Planning fees
Building department fees
Engineering fees
Weed abatement fees
Ambulance fees
Park and recreation fees
Other
Total charges for services
$12,585,129
9,167,849
3,098,793
983,584
184,424
5.867
26.025.646
234,063
1,071,342
143,322
276.046
1.724.773
181.367
1994
Actual
11,123,765
10,840,115
3,153,084
1,183,310
209,251
1.480
26.511.005
365,571
1,093,827
44,496
318.381
1.822.275
28.384
7,845
2,431,827
262.430
2.702.102
606,358
204,894
551,099
43,689
250,515
697,365
481.615
2.835.535
2,628,592
233.887
2.862.479
459,509
275,156
656,108
29,607
342,829
747,043
559.552
3.069.804
Variance-
Increase
(Decrease)
(1,461,364)
1,672,266
54,291
199,726
24,827
(4.387)
485.359
131,508
22,485
(98,826)
42.335
97.502
(152.983)
(7,845)
196,765
(28.543)
160.377
(146,849)
70,262
105,009
(14,082)
92,314
49,678
77.937
234.269
(Continued)
72
CITY OF CARLSBAD
General Fund
Comparative Schedule of Revenues
(Continued)
Fines and forfeits:
Vehicle code fines
Other
Total fines and forfeits
Interest income
Interdepartmental services:
Engineering
Legal
Other
Total interdepartmental
services
Miscellaneous:
Sales of maps and publications
Sales of property
Reimbursed expenditures
Other
Total miscellaneous
Total revenues
1993
Actual
227,962
3.915
231.877
2.093.659
508,499
13,683
1.578.803
2.100.985
1994
Actual
227,559
3.895
231.454
1.465.717
732,699
13,824
1.647.053
2.393.576
Variance-
Increase
(Decrease)
(403)
(20)
(423)
(627.942)
224,200
141
68.250
292.591
54,959
6,169
1,564,588
187.668
1.813.384
$39.709.328
43,089
15,044
206,517
114.121
378.771
38.763.465
(11,870)
8,875
(1,358,071)
(73.547)
(1.434.613)
(945.863)
73
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues whose expenditures are
restricted by law or administrative regulation to specified purposes.
Affordable Housing
To account for receipts of fees charged to developers to provide funding assistance for
affordable housing needs of lower and moderate income households.
Civic Arts Program
To account for transfers from the General Fund to support the civic arts program.
Community Development Block Grant
To account for federal block grants for commercial and residential loans for community
development.
Federal Grants
To account for federal grants received to support the City's Library Programs and Historic
Preservation.
Gas Tax
To account for receipts and expenditures of money apportioned under Streets and Highways
Code of the state of California.
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.
Mobilehome Rent Control
To account for transfers from the General Fund to support mobilehome rent control.
Police Asset Forfeiture
To account for money received under federal and state programs distributing property
confiscated from illegal activities.
74
Section 8 Housing Authority
To account for federal grants for low and moderate income rental assistance payments.
Senior Nutrition
To account for money received and expenditures for senior programs under the Older
Americans Act.
Special Benefit Districts
To account for revenues and expenditures from property tax assessments for street lighting
and landscaping.
State Grants
To account for state of California Library and Civic Arts grants.
75
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30, 1994
Assets
Cash and investments
Receivables:
Loan
Taxes
Accounts, net
Accrued interest
Due from other funds
Due from other governments
Prepaid expenditures
Total assets
Civic Community Library
Affordable Arts Development Federal Gas Audio-Visual
Housing Program Block Grant Grants Tax Insurance
$237,178 309,473 42,116 11,687 2,879,095 128,525
5,568 -
2,582 4,627 319 41,673 1,943
314.100 47.684 12.006 2.920.768 130.468
Liabilities and Fund Balances
Liabilities:
Accounts payable $
Accrued wages payable
Due to other funds
Due to other governments =_
Total liabilities
Fund balances:
Reserved for prepaid
expenditures
Reserved for loans receivable
Reserved for low and
moderate income housing
Reserved for encumbrances
Unreserved:
Designated for continuing
appropriations
Designated for approved
capital projects
Undesignated 239.760
Total fund balances 239.760
Total liabilities and
fund balances $239.760
98,000
121,220
94.880
314.100
314.100
5,568
42.116
47.684
47.684
239
1,525
1.764
104,089
5,098
109.187
8,728
4,522 56,044 21,765
14,818 1,045,000
(9.098) 1.710.537 99.975
10.242 2.811.581 121.740
12.006 2.920.768 130.468
76
Low and
Moderate
Income
Housing
1,402,574
102,387
5,527
21,093
1,199,592
2.731.173
715
9,905
10.620
102,387
1,817,758
-
800,408
2.720,553
Mobilehome Police
Rent Asset
Control Forfeiture
39,746 1,529,255
596 22,983
40,342 lr 552. 238
22,835
6,990
29.825
-
16,097
164,100
40.342 1.342.216
40.342 1.522.413
Section 8 Special
Housing Senior Benefit
Authority Nutrition Districts
580,516 - 1,748,361
17,614
28,153 - 1,550
1,715 - 26,698
10,398 35,617
218.395
839,177 35.617 lr 794. 223
8,517 16,279 48,306
12,393 2,000 42,042
667,136 15,184
707.748 33.463 90.348
218,395
4,241 2,045 20,750
- - -
(91.207) 109 1.683.125
131.429 2.154 1,703,875
State
Grants Totals
292,072 9,200,598
107,955
23,141
29,703
4,151 128,380
1,199,592
420 46,435
218.395
296.643 10.954.199
35,895 245,603
79,953
420 682,740
19.702
36.315 1.027.998
218,395
107,955
1,817,758
36,640 260,104
131 1,224,049
921,628
223.557 5.376.312
260,328 9.926.201
2.731.173 40.342 1.552.238 35.617 1.794.223 296.643 10.954.199
77
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1994
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
Civic Community Library
Affordable Arts Development Federal Gas Audio-Visual
Housing Program Block Grant Grants Tax Insurance
$ -
234,000
5,760 16,902
- 20
239.760 16.922
944
82,316
1,212
1,186,119
89,152
141,790 7,274
944 83.528 1.327.909
Expenditures:
Current:
Public safety
Housing and welfare
Library and the arts
Community services
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Operating transfers in
Total other financing
sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses 239,760
Fund balances at beginning of
year
Residual equity transfers in
Residual equity transfers out -
21,105
9.462
5,279
308,821
26,209
26.209
239.760 (4.183) (25.265)
(25,265)
72,949
92,550 - 93,326
- 1.593.540 -
92.550 1.593.540 93.326
.022) (265.631) 3.100
(9,022) (265,631) 3,100
20,239 3,077,212 118,640
Fund balances at end of year 314.100 47.684 10.242 2.811.581 121.740
78
Low and
Moderate
Income
Housing
322,067
58,762
162
380.991
2,441,056
Mob i1ehome Po1i ce
Rent Asset
Control Forfeiture
107,591
1,694 90,569
1.694 198.160
604,628
101,494 21,352
101.494
279.497 (19.658) (406.468)
279,497 (19,658) (406,468)
1,928,881
60,000
Section 8 Special
Housing Senior Benefit State
Authority Nutrition Districts Grants Totals
2,678,074 105,354
7,947
123.605 86.556
2.809.626 191.910
2,796,680 189,756
2.796.680 189.756
12.946 2.154
1,508,186
289,190 3,262,525
1,606,595 - 1,929,747
85,894 14,554 433,302
2.303 - 212.646
1.694.792 303.744 7,346.406
604,628
3,135,491
313,138 520,119
1.406.512 - 3.000.052
1.406.512 313.138 7.260.290
288.280 (9.394) 86.116
14.563 - 24.025
14,563 - 24.025
12,946 2,154
118,483
302,843 (9,394) 110,141
1,401,032 269,722 9,757,035
60,000
(975)
2.720.553 40.342 1.522.413 131.429 2.154 1.703.875 260.328 9.926.201
79
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures
Budget and Actual (Budgetary Basis)
Year Ended June 30, 1994
Affordable Housing Civic Arts Program
Actual on Variance- Actual on Variance-
Budgetary Favorable Budgetary Favorable
Budget Basis (Unfavorable! Budget Basis (Unfavorable!
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenue
$ -
234,000
5,760
234,000
5,760
239.760 239.760
16,902 16,902
.20 20
Expenditures:
Current:
Public safety
Housing and welfare
Library and the arts
Community services
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
239,400 119,105 120,295
239.760
239.400 119.105 120.2V
I) (102.1831
80
Community Development Block Grant
Actual on Variance-
Budgetary Favorable
Budget Basis (Unfavorable)
Federal Grants
Actual on
Budgetary
Budget Basis
Variance-
Favorable
(Unfavorable)
944
944
944
944
60,000 82,316
1,212
60.000
22,316
1,212
23.528
26,209
26.209
(26,209)
(26.209)
142,048 111,890
142.048 111.890
30,158
30.158
(82.048) (28.362)53.686
81
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures •
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1994
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
Gas Tax Library Audio-Visual Insurance
Actual on Variance-
Budgetary Favorable
Budget
Actual on Variance-
Budgetary Favorable
Basis (Unfavorable) Budget Basis (Unfavorable)
$ 1,130,000 1,186,119
90,000 141,790
56,119
51,790
120,000 89,152 (30,848)
6,000 7,274 1,274
1.220.000 1.327.909 107.909 126.000 96.426 (29.574)
Expenditures:
Current:
Public safety
Housing and welfare
Library and the arts
Community services
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
123,601 115,091 8,510
2.710.083 2.694.584 15.499
2.710.083 2.694.584 15.499 123.601 115.091 8.510
$(1.490.0831 (1.366.675) 123.408 2.399 (18.665) (21.064)
82
Low and Moderate Income Housing
Actual on Variance-
Budgetary Favorable
Budget Basis (Unfavorable)
Mobilehome Rent Control
Budget
Actual on Variance-
Budgetary Favorable
Basis (Unfavorable)
320,000 322,067 2,067
75,000 58,762 (16,238)
162 162
395.000 380.991 (14.009)
1,694 1,694
1.694 1.694
124,290 101,494 22,796 60,000 21,352 38,648
124.290 101.494 22.796 60.000 21.352 38.648
270.710 279.497 8.787 (60.000) (19.658) 40.342
83
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures •
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1994
Police Asset Forfeiture
Actual on Variance-
Budgetary Favorable
Budget Basis (Unfavorable)
Section 8 Housing Authority
Actual on Variance-
Budgetary Favorable
Budget Basis (Unfavorable)
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
$ - -
400,000 107,591
60,000 90,569
(292,409)
30,569
2,890,000 2,678,074
8,000 7,947
123.605
460.000 198.160 (261.840) 2.898.000 2.809.626
(211,926)
(53)
(88.374)
Expenditures:
Current:
Public safety
Housing and welfare
Library and the arts
Community services
Total expenditures
794,445 784,825 9,620
794.445 784.825 9.620
Excess (deficiency) of
revenues over (under)
expenditures $(334.4451 (586.6651 (252.220)
2,881,187 2,800,921
2.881.187 2.800.921
16.813 8.705
80,266
(8.108)
84
Senior Nutrition
Budget
Actual on Variance-
Budgetary Favorable
Basis (Unfavorable!
Special Benefit Districts
Actual on Variance-
Budgetary Favorable
Budget Basis (Unfavorable)
103,000 105,354 2,354
115.000 86.556 (28.444)
218.000 191.910 (26.090)
1,595,440
42,500
2.000
1,606,595
85,894
2.303
1.639.940 1.694.792
11,155
43,394
303
192,011 191,801 210
1.831.140 1.427.262 403.878
192.011 191.801 210 1.831.140 1.427.262
25.989 109 (25.880) (191.200) 267.530 458.730
85
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures •
Budget and Actual (Budgetary Basis), Continued
Year Ended June 30, 1994
State Grants
Actual on
Budgetary
Budget Basis
Variance-
Favorable
(Unfavorable)
Totals
Actual on Variance-
Budgetary Favorable
Budget Basis (Unfavorable)
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Miscellaneous
Total revenues
$ -
151,670 289,190
20,000 14,554
-
137,520
-
(5,446)
-
1,450,000
3,604,670
1,715,440
301,500
117.000
1,508,186
3,262,525
1,929,747
433,302
212.646
58,186
(342,145)
214,307
131,802
95.646
171.670 303.744 132.074 7.188.610 7.346.406 157.796
Expenditures:
Current:
Public safety
Housing and welfare
Library and the arts
Community services
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
363,485 349,909
363.485 349.909
13,576
13.576
794,445
3,257,488
868,534
4.541.223
784,825
3,141,777
695,995
4.121.846
9,620
115,711
172,539
419.377
9.461.690 8.744.443
$f!91.81S) (46.165) 145.650 f2.273.080) f1.398.037)
717.247
875.043
86
87
88
DEBT SERVICE FUNDS
Debt Service Funds are used to account for accumulation of resources for, and payment of,
principal and interest on the City's general bonded debt and special assessment bonds for
which the City is obligated in some manner.
College Boulevard
To accumulate property assessments levied for payment of debt service on 1986 College
Boulevard Assessment District Bonds.
Hosp Grove COPs
To account for payment of debt service on the 1988 Certificates of Participation issued to
purchase Hosp Grove.
Parking Authority
To account for lease payments received by the Parking Authority from the General Fund for
payment of debt service on 1969 and 1981 Parking Authority Revenue Bonds.
Redevelopment Bonds
To account for payment of debt service on bonds issued to finance improvements for the
Carlsbad Redevelopment Agency.
89
CITY OF CARLSBAD
Debt Service Funds
Combining Balance Sheet
June 30, 1994
Assets
Cash and investments
Receivables:
Taxes
Special assessments
Accrued interest
Total assets
Liabilities and Fund Balances
Liabilities:
Deferred revenue
Total liabilities
Fund balances:
Reserved for debt service
Unreserved:
Designated for arbitrage
Total fund balances
Total liabilities and fund
balances
College
Boulevard
Hosp
Grove
COPs
6,955,000
16.293 29.972
$6.955.000
6.955.000
Parking Redevelopment
Authority Bonds
$1,191,949 872,882 375,584
8.472
$8.163.242 902.854 384.056
1,208,242 900,229 384,056
- 2.625 -
1.208.242 902.854 384.056
$8.163.242 902.854
Totals
2,005,865
22,109
17.709
2.045.683
4,446,280
22,109
6,955,000
72.446
11.495.835
6.955.000
6.955.000
2,045,683
2.045.683
4,538,210
2.625
4.540.835
2.045.683 11.495.835
90
CITY OF CARLSBAD
Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1994
Revenues:
Taxes
Interest income
Total revenues
Hosp
College Grove Parking
Boulevard COPs Author itv
$687,308
53.424 74.124 32.287
740.732 74.124 32.287
Redevelopment
Bonds
1,288,269
61.391
1.349.660
Totals
1,975,577
221.226
2.196.803
Expenditures:
Debt service:
Principal retirement 290,000
Interest and fiscal charges 588,043
Payment to refunded bond
escrow agent
Debt issuance costs
State mandated payment -
Total expenditures 878.043
Excess (deficiency) of
revenues over (under)
expenditures (137.311)
Other financing sources (uses):
Operating transfers in 38,000
Operating transfers out
Payment to refunded bond
escrow agent
Proceeds of refunding bonds
Proceeds of bonds, net of
discount -
Total other financing
sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses
275,000 200,000
594,371 95,439
878.043 869.371 295.439
(795.247) (263.152)
792,025 46,955
38.000 792.025 46.955
(99,311) (3,222) (216,197)
Fund balances at beginning
of year 1.307.553
Fund balances at end of year $1.208.242
906.076 600.253
902.854
885,375
1,709,777
489,113
92.472
3.176.737
765,000
2,163,228
1,709,777
489,113
92.472
5.219.590
(1.827.077) (3.022.787)
474,777 1,351,757
(2,610,517) (2,610,517)
(10,964,372) (10,964,372)
10,964,372 10,964,372
4.220.728 4.220.728
2.084.988 2.961.968
257,911 (60,819)
1.787.772 4.601.654
2.045.683 4.540.835
91
CITY OF CARLSBAD
Redevelopment Bonds Debt Service Fund
Schedule of Revenues and Expenditures -
Budget and Actual (Budgetary Basis)
Year Ended June 30, 1994
Revenues:
Taxes
Interest income
Total revenues
Actual on
Budgetary
Budget Basis
Variance-
Favorable
(Unfavorable)
$ 1,280,000
60.000
1.340.000
1,288,269
61.391
1.349.660
8,269
1.391
9.660
Expenditures:
Debt service:
Interest and fiscal charges
Payment to refunded bond escrow
agent
Debt issuance costs
State mandated payment
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
859,550 885,375
$(1.810.940) (1.827.077)
(25,825)
1,709,777
489,113
92.500
3.150.940
1,709,777
489,113
92.472
3.176.737
28
(25.797
(16.137)
92
93
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the purchase or construction of major capital
facilities which are not financed by Proprietary or Trust Funds.
Assessment Districts
To account for capital projects financed by the issuance of assessment district bonds.
City and County Agencies
To account for receipts from other cities and the County of San Diego for street
construction and improvements.
Community Development Block Grants
To account for federal block grants for community development.
Community Facilities District No. 1
To account for civic facilities, freeway interchanges, and road segments financed by
Community Facility District No. 1 (Mello-Roos) funding.
General Capital Construction
To account for transfers from the General Fund for various municipal capital projects.
Palomar Airport Road East Project
To account for funding and expenditures related to construction of Palomar Airport Road at
El Camino Real and east to San Marcos city limits. Funding is provided by the cities of San
Marcos and Vista, San Diego County Airport, Sales Tax/TransNet, Traffic Impact fees, and
direct developer contributions.
Park Development
To account for receipts of fees charged to developers for park acquisition and development.
Planned Local Drainage Areas
To account for receipts of fees charged to developers for drainage facilities necessitated by
growth.
94
Public Facilities Construction
To account for receipts of fees charged to developers for specific capital projects
necessitated by growth.
Rancho Santa Fe Road Project
To account for receipts of fees charged to developers for Rancho Santa Fe road construction
and improvements. A Community Facilities District (Mello-Roos) is proposed.
Redevelopment Agency
To account for financial resources segregated for the rehabilitation of commercial and
public property and capital projects located in the Carlsbad Village area.
Redevelopment Area II
To account for the costs of a feasibility study on establishing a second redevelopment area.
Fund closed to General Fund during the year.
Sales Tax/TransNet
To account for receipts of County sales taxes allocated by the San Diego County Regional
Transportation Commission to finance transportation projects.
State Grants
To account for capital projects financed by state grants including Local Transportation
Funds and Carlsbad Boulevard Shore Protection.
Traffic Impact Projects
To account for receipts of fees charged to developers for street construction and
improvement.
95
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sbeet
June 30, 1994
Palomar
City Community Community Airport
and Development Facilities General Road
Assessment County Block District Capital East
Districts Agencies Grants No. 1 Construction Project
Assets
Cash and investments
Receivables:
Taxes
Accounts, net
Accrued interest
Due from other governments
Advances to other funds
Total assets
10,818
$1,645,829 1,271,150
173,644
19,001
$1.656.647 1.463.795
9,257,242 3,462,402 154,842
1,459
140,021
36,142
2,573
479,536
1.700.000
36.142 9.398.722 5.162.402 636.951
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued wages payable
Due to other funds
Advances from other funds
Deposits payable
Deferred revenue
Total liabilities
$
-
-
-
240 6,244
1,154
1,228,336
-
240 1.235.734
5,077
-
-
913,000
918.077
79,580 406,753
- -
-
-
79.580 406.753
Fund balances (deficit):
Reserved for advances to
other funds
Reserved for encumbrances 66,539
Unreserved:
Designated for approved
capital projects 1,427,546
Undesignated 162.562
Total fund balances
(deficit) 1.656.647
Total liabilities
and fund balances $1.656.647
- 1,700,000
3,704 131,120 495,185 114,869 442,074
484,426 - 2,345,970 3,267,953 126,880
975.425 (1.330.712) 5.639.490 - (338.7561
1.463.555 (1.199.5921 8.480.645 5.082.822 230.198
1.463.795 36.142 9,398,722 5.162.402 636.951
96
Planned Rancho
Local Public Santa Fe Traffic
Park1 Drainage Facilities Road Redevelopment Sales Tax/ State Impact
Development Areas Construction Project Agency TransNet Grants Protects Totals
3,134,734 3,211,371 9,457,677 2,607,811 2,702,775 1,024,849 333,468 2,045,383 40,309,533
____ _ ___ 1,459
---- - ___ 173,644
46,786 47,929 139,697 38,336 23,668 16,084 8,858 31,684 525,455
---- - ___ 515,678
- - - - - - - - 1.700.000
3.181.520 3.259.300 9.597.374 2.646.147 2.726.443 1.040.933 342.326 2.077.067 43.225.769
-
-
2,550,000 300,000
2,550.000 300.000
4,598
-
950,000
954.598
33,048
20,114
8,369,823
8.422.985
3
-
-
3
142 759 536,444
21,268
1,228,336
750,000 12,919,823
913,000
71.034 20.400 91.434
71.176 771.159 15.710.305
- - - - - 1,700,000
177,001 25,814 42,116 43,409 27,618 6,630 1,576,079
219,959 5,334,408 142,222 2,169,636 340,085 266,604 1,299,278 17,424,967
631.520 2.739.341 3.131.367 2.478.111 (7.908.294) 657.436 (23.0721 - 6.814.418
631.520 2.959.300 8.642.776 2.646.147 (5.696.542) 1.040.930 271.150 1.305.908 27.515.464
3.181.520 3.259.300 9.597.374 2.646.147 2.726.443 1.040.933 342.326 2.077.067 43.225.769
97
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1994
Revenues:
Taxes
Intergovernmental
Charges for services
Interest income
Contributions from
property owners
Miscellaneous
Total revenues
Palomar
City Community Community Airport
and Development Facilities General Road
Assessment County Block District Capital East Park
Districts Aeencies Grants No. 1 Construction Project Development
$
-
-
61,417
15,000_
76,417
173,644
-
75,860
_
716.245
965,749
2,042,901
1,151,152
497,767
475,585
_ _
_ _
1.151.152 3.016.253
760,340
--
207,000
3.024
970,364
479,536
5,265
5,112 167,704
_ _
_ _
484.648 172,969
Expenditures:
Current:
General government
Capital outlay
Total expenditures
134,982 99,639
49.279 133.870 2.215.762 1.387.774 753.895 4.516.341
49.279 133.870 2.350.744 1.487.413 753.895 4.516.341
Excess (deficiency) of
revenues over (under)
expenditures 27.138 831.879 (1.199.592) 1.528.840 216.469 (4.031.6931 172.969
Other financing sources (uses):
Operating transfers in - -
Operating transfers out (38.000) (399.7731
293,550 3,485,867
Total other financing
sources (uses)(38.000) (399.773)
(300.000)
(300.000) 293.550 3.485.867
Excess (deficiency) of
of revenues and other
financing sources over
(under) expenditures
and other financing
uses (10,862) 432,106 (1,199,592) 1,228,840 510,019 (545,826) 172,969
Fund balances (deficit) at
beginning of year
Residual equity transfers in
Residual equity transfers
out
1,726,946 1,031,449 7,251,805 4,585,102 776,024 458,551
(59.437)(12.299)
Fund balances (deficit) at
end of year $1.656.647 1.463.555 (1.199.592) 8.480.645 5.082.822
98
230.198
Planned Rancho
Local Public Santa Fe
Drainage Facilities Road Redevelopment Redevelopment Sales Tax/
Areas Construction Project Agency Area II TransHet
Traffic
State Impact
Grants Projects Totals
30,800
201,018 916,563 2,317,011 37,426
171,026 485,159 110,984 113,471
122,851
26.572
372.044 1.524.573 2.427.995 208.269
27,615 608,069
798.606 85.969 2.301.117
798.606 113.584 2.909.186
372.044 725.967 2.314.411 (2, 700. 917)
300,000 2,610,517
- (474.777)
300.000 2.135.740
- 2,042,901
738,442 1,394,485 - 4,728,399
- - - 207,213 4,182,263
660 54,659 34,900 119,345 1,875,882
- - - 344,851
12.929 - 758.770
13.589 793.101 1.429.385 326.558 13.933.066
375 - 1,000 - 871,680
406.215 39.119 245.306 12.933.253
375 406.215 40.119 245.306 13.804.933
13.214 386.886 1.389.266 81.252 128.133
- - - 6,689,934
(1. 112. 900) (1.259. 403) (713.791) (4.298.644
(1.112.900) (1.259.403) (713.791) 2.391.290
372,044 725,967 2,614,411 (565,177) 13,214 (726,014) 129,863 (632,539) 2,519,423
2,587,256 7,916,809 (5,131,365) (13,214) 1,766,944 141,287 1,938,447 25,036,041
31,736 _____ 31,736
(71.736)
2.959.300 8.642.776 2.646.147 (5.696.542)
99
1.040.930 271.150 1.305.908 27.515.464
100
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises - where the intent of the governing body is
that the costs of providing goods or services to the general public be financed or recovered
primarily through user charges.
Carlsbad Municipal Water District
To account for the operation, maintenance, planning, capital facility financing, and all
customer service functions of the Carlsbad water system.
Golf Course
To account for revenues, expenses and the construction activities of the City's proposed
municipal golf course.
Sewer
To account for the operation, maintenance and capital facility financing of the City's sewer
system.
Solid Waste
To account for revenues and expenses of the City's solid waste source-reduction and
recycling programs.
101
CITY OF CARLSBAD
Enterprise Funds
Combining Balance Sheet
June 30, 1994
Assets
Current assets:
Cash and investments
Receivables:
Taxes
Accounts, net
Accrued interest
Due from other funds
Due from other governments
Inventory
Total current assets
Restricted assets:
Cash and investments
Accrued interest
Total restricted assets
Property, plant and equipment
Less accumulated depreciation
Property, plant and
equipment, net
Total assets
Liabilities and Fund Equity
Current liabilities:
Accounts payable
Accrued wages payable
Due to other funds
Current portion of long-term debt
Deposits payable
Total current liabilities
Current liabilities payable from
restricted assets - accrued
interest payable
Deferred revenue
Loan payable
Certificates of participation, net of
unamortized issuance costs of $293,811
Installment purchase agreement, net
of unamortized discount of $350,659
Total liabilities
Fund equity:
Contributed capital
Retained earnings:
Reserved for debt service
Reserved for rate stabilization
Unreserved
Total retained earnings
Total fund equity
Total liabilities and
fund equity
Carlsbad
Municipal
Water District
$16,201,519
10,055
3,182,582
247,794
18,594
216.559
19.877.103
2,018,799
2.018.799
62,602,791
(11.283. 352)
51.319.439
$73.215.341
$ 1,329,199
283,908
209,924
817,483
135.639
2.776.153
127.158
900,357
9,571,189
13,374.857
40,987.504
793,597
280,561
17,778.822
18.852.980
59.840.484
Golf Course
1,972,940
29,452
2.002.392
-
27,893
27.893
2.030.285
-
-
2.425.190
(394.905)
( 394. 9051
2.030.285
Sewer
17,574,238
259,798
209,924
1,027,396
8.338
19.079.694
3,175,938
9.646
3.185.584
60,648,631
( 11. 064. 189)
49.584.442
71,849.720
206,663
42,521
289,782
185.991
724,957
344,875
2,070,778
11,774.729
14.915.339
38.019.720
2,550,927
16.363.734
18.914,661
56.934.381
Solid Waste
73,356
1,127
74.483
1,639
(328)
1.311
75.794
5,143
51
5.194
-
JUS4
70.600
70.600
70,600
Totals
35,822,053
10,055
3,182,582
538,171
209,924
1,045,990
224.897
41.033.672
5,194,737
9.646
5.204.383
123,280,954
(22.347.8691
100.933.085
147.171.140
1,541,005
326,429
209,924
1,107,265
321.681
3.506.304
472.033
2,070,778
900,357
9,571,189
11.774.729
28.295.390
81.432.414
3,344,524
280,561
33,818,251
37.443.336
118,875,750
$73.215.341 2.030.285 71.849.720 147.171.140
102
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings
Year Ended June 30, 1994
Operating revenues:
Water sales
Sewer services charges
Other charges for services
Contributions from other government
agencies
Miscellaneous
Total operating revenues
Carlsbad
Municipal
Water District Golf Course
$12,550,905
499,586
215,642
300.432
13.566.565
Sewer Solid Waste Totals
4,718,689
75,839
28.005
12,550,905
4,718,689
85,500 660,925
215,642
- 328.437
4.822.533 85.500 18.474.598
Operating expenses:
Plant operations
Purchased water
Depreciation and amortization
General and administrative
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Interest income
Interest expense and fees
Gain (loss) on sale of property
Property taxes
Miscellaneous income (expense)
Amortization of issuance costs
Total nonoperating revenues
(expenses)
Net income (loss)
Retained earnings at beginning
of year
Retained earnings (deficit) at
end of year
-
7,269,101
1,134,601
3.882.855
12.286.557
1.280.008
878,139
(802,944)
(96,027)
744,209
-
(26.710)
1,575,214
-
1,208,575
1.340.111
4.123.900
698.633
105,934 991,713
(832,630)
(288)
-
(778,110)
(35.066)
-
-
328
111.956
112.284
( 26. 784)
4,061
-
-
-
33,232
-
1,575,214
7,269,101
2,343,504
5.334.922
16.522.741
1.951.857
1,979,847
(1,635,574)
(96,315)
744,209
(744,878)
(61,776)
696.667 123.729 185.513
1,976,675 (672,176)
16.876.305
822,362 10,509 2,137,370
18.092.299 60.091 35.305.966
J18.8S2.980 ) 18.914.661 70.600 37.443.336
103
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 1994
Carlsbad
Municipal
Water District
Cash flows from operating activities:
Operating income (loss) $ 1,280,008
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 1,134,601
Decrease (increase) in receivables (606,467)
Decrease (increase) in due from
other governments (18,592)
Decrease (increase) in inventory 2,470
Increase (decrease) in due to/from
other funds 5,266
Increase (decrease) in deposits payable 8,640
Increase (decrease) in accounts payable 186,779
Increase (decrease) in accrued wages
payable 16,747
Increase (decrease) in loans payable 942.840
Net cash provided by (used in)
operating activities 2.952.292
Cash flows from capital and related
financing activities:
Purchases of property, plant and equipment (4,015,294)
Principal payment on bonds (730,000)Interest and other fees paid on bonds (810,751)
Property taxes received 744,209Capital contributions received 653.132
Net cash provided by (used in)
capital and related financing
activities (4.158.7041
Cash flows from investing activities:
Investments in restricted assets 283,964
Interest on investments 891.421
Net cash provided by
investing activities 1.175.385
Net increase (decrease) in cash and
cash equivalents (31,027)
Cash and cash equivalents at beginning
of year 16.232.546
Cash and cash equivalents at end of year S16.201.S19
Supplemental schedule of noncash
investing and financing activities:
Capital assets contributed by
contractors $ 164.460
Capital assets expensed S
iolf Course Sewer Solid Waste
698,633 (26,784)
1,208,575 328
2,229
(5,266)
40,382
(25) 94,716 3,833
92 (1,260)
(25) 2.039.361 (23.883)
(16,245) (16,657)
(274,630)
(839,610)
374.365 33,232
(16.245) (756.532) 33.232
(76,969)
105,751 968.547 3.869
105.751 891,578 3.869
89,481 2,174,407 13,218
1.883.459 15.399.831 60.138
1.972.940 17.574.238 73,356
612.290
778.110
Totals
1,951,857
2,343,504
(606,467)
(18,592)
4,699
49,022
285,303
15,579
942.840
4.967.745
(4,048,196)
(1,004,630)
(1,650,361)
744,209
1.060.729
(4.898.249)
206,995
1,969.588
2.176.583
2,246,079
33.575.974
35.822.053
776.750
778.110
104
105
106
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by
one department or agency of a government to other departments or agencies on a cost
reimbursement basis.
Data Processing
To account for charges to other funds for data processing services.
Fleet Management
To account for charges to other funds to provide fleet maintenance and accumulate funds for
fleet replacement.
General Liability Self-Insurance
To account for charges to other funds to insure for liability claims against the City.
Health Insurance
To account for charges to other funds and from employees to provide health insurance for
full-time City employees.
Workers' Compensation
To account for charges to other funds to insure against Workers' Compensation claims.
107
CITY OF CARLSBAD
Internal Service Funds
Combining Balance Sheet
June 30, 1994
General
Liability
Data Fleet Self- Health Workers'
Processing Management Insurance Insurance Compensation
Assets
Current assets:
Cash and investments
Receivables:
Accounts, net
Accrued interest
Inventory
Total current assets
Property, plant and equipment:
Equipment and vehicles
Less accumulated depreciation
Property, plant and
equipment, net
Total assets
Liabilities and Fund Equity
Current liabilities:
Accounts payable
Accrued wages payable
Estimated claims payable
Total current liabilities
Fund equity:
Contributed capital -
contributed from other funds
Retained earnings (deficit)
- unreserved
Total fund equity
Total liabilities and
fund equity
Totals
$ 671,884 3,690,035 2,338,603 1,727,004 2,282,566 10,710,092
9,932
681,816
1,315,102
(415.740)
899.362
$1.581.178
$ 41,207
23,140
64.347
1,006,885
509.946
1.516.831
6,192
54,343 34,658 26,735
83.783
3.834.353 2.373.261 1,753.739
4,750,914
(2. 441. 395)
2.309.519
6.143.872 2.373.261 1.753.739
289,447 55,608 39,999
24,331 4,430
617.070 377.000
313.778 677.108 416.999
3,027,803 1,910,000
2.802.291 (213,847) 1,336.740
5.830,094 1,696.153 1.336.740
6,192
34,238 159,906
83.783
2.316.804 10.959.973
6,066,016
(2.857.135)
3.208.881
2.316.804 14.168.854
330 426,591
6,905 58,806
988.352 1.982.422
995.587 2,467.819
1,000,000 6,944,688
321.217 4,756,347
1.321.217 11,701.035
$1.581.178 6.143.872 2.373.261 1.753.739 2.316.804 14.168.854
108
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 1994
Operating revenues:
Other charges for services
Miscellaneous
Total operating revenues
General
Liability
Data Fleet Self-
Processing Management Insurance
Health Workers'
Insurance Compensat ion Totals
$707,418 2,084,049 766,919 1,366,158
- 61.894 14.197 340.509
707.418 2.145.943 781.116 1.706.667
611,639 5,536,183
54.138 470.738
665.777 6.006.921
Operating expenses:
Depreciation and amortization
Fuel and supplies
Claims expense
General and administrative
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Interest income
Gain (loss) on sale of property
Total nonoperating revenues
(expenses)
Income (loss) before operating
transfers
Operating transfers in
Net income (loss)
Retained earnings (deficit) at
beginning of year
80,939 526,794 - 607,733
434,204 - 434,204
1,043,564 1,795,603 712,642 3,551,809
585.972
666.911
40.507
34,725
(960)
33.765
843.192
1.804.190
341.753
191,941
191.941
57.351
1.100.915
(319.799)
120,721
120.721
60.436
1.856.039
(149.3721
99,717
99.717
76.605
(123.470)
124,389
1.623.556
6.217.302
(210.381)
571,493
(960)
570.533
Retained earnings (deficit) at
end of year
74,272
74,272
533,694 (199,078) (49,655)
10.500 4.000 -
919 360,152
14.500
544,194 (195,078) (49,655)919 374,652
435.674 2.258.097 (18.769) 1.386.395 320.298 4.381.695
$509.946 2.802.291 (213.847) 1.336.740 321.217 4.756.347
109
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30, 1994
General
Liability
Data Fleet Self- Health Workers'
Processing Management Insurance Insurance Compensation
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization
(Increase) decrease in receivables
Decrease in inventory
Increase (decrease) in accounts
payable
Increase (decrease) in accrued
wages payable
Increase (decrease) in estimated
claims payable
Net cash provided by operating
activities
Cash flows from noncapital financing
activities:
Transfers from other funds
Cash flows from capital and related
financing activities:
Purchases of property, plant and
equipment
Cash flows from investing activities -
Interest on investments
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents at beginning
of year
Cash and cash equivalents at end of year
Supplemental schedule of noncash
investing and financing activities -
capital assets contributed by other
funds
$ 40,507 341,753
80,939 526,794
409
13,278
29,973 111,805
446 1,347
151.865 995.386
10,500
(319,799) (149,372) (123,470)
-
(14,125) 1,481 (37)
4,430 - 6,905
(254. 087) 44.000 (19.915)
(583.581) (103.891) (136.517)
4.000
(57.429) (529.191)
33.250 184.665 129.400 99.876 125.789
127,686 661,360 (450,181) (4,015) (10,728)
544.198 3.028.675 2.7S8.784 1.731.019 2.293.294
$671.884 3.690.03S 2.338.603 1.727.004 2.282.566
Totals
(210,381)
607,733
409
13,278
129,097
13,128
(230.0021
323.262
14.500
(586.620)
572.980
324,122
10.385.970
10.710.092
$390.643 82.105 472.748
110
111
AGENCY FUNDS
Agency Funds are used to account for assets held by a government for other funds,
governments or individuals.
Deferred Compensation
To account for employees' deposits in deferred compensation plans offered by the City.
Contractors' and Miscellaneous Deposits
To account for money deposited by contractors for designated future development and other
miscellaneous deposits.
Assessment Districts
To account for the debt service transactions on assessment district bonds for which the City
is not obligated.
112
CITY OF CARLSBAD
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year Ended June 30, 1994
Balances at
July 1. 1993
Deferred Compensation:
Assets:
Deferred compensation investments $ 5.90S.967
Liabilities:
Deferred compensation payable $ 5.90S.967
Balances at
Additions Reductions June 30. 1994
1.085.076
1.085.076
6.991.043
6.991.043
Contractors' and Miscellaneous Deposits:
Assets:Cash and investments $ 8,606,057
Accrued interest 12.536
Total assets $ 8.618.593
Liabilities:
Accounts payable $ 2,047
Deposits payable 8,237,926
Accrued interest payable 378.620
Total liabilities $ 8.618.593
30,506,631 (32,251,425) 6,861,263
71.115 (15.0771 68.574
30.577.746 f32.266.5021 6.929.837
7,732 (2,047) 7,732
17,712,740 (19,584,892) 6,365,774
177.711 - 556.331
17.898.183 (19.586.9391 6.929.837
Assessment Districts:
Assets:
Cash and investments
Taxes receivable
Accrued interest
Total assets
Liabilities:
Accounts payable
Assessments payable
Total liabilities
$ 4,173,183
46.428
$ 4.219.611
4.219.611
& 4.219.611
2,922,199
860
73.029
392
2.913.060
2.913.452
(2,774,887)
(71.5531
(2.763.8041
(2.763.8041
4,320,495860
47.904
2.996.088 (2.846.4401 4.369.259
392
4.368.867
4.369.259
Totals - All Agency Funds:
Assets:
Cash and investments
Deferred compensation investments
Taxes receivable
Accrued interest
Total assets
Liabilities:
Accounts payable
Accrued interest payable
Assessments payable
Deposits payable
Deferred compensation payable
Total liabilities
$12,779,240 33,428,830 (35,026,312) 11,181,758
5,905.967 1,085,076 - 6,991,043
860 - 86058.964 144.144 (86.6301 116.478
$18.744.171 34.658.910 (35.112.9421 18.290.139
2,047
378,620
4,219,6118,237,9265.905.967
8,124177,711
2,913,060
(2,047)
(2,763,804)
17,712,740 (19,584,892)
1.085.076 -
8,124
556,331
4,368,8676,365,774
6.991.043
$18.744.171 21.896.711 (22.350.7431 18.290.139
113
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.
114
CITY OF CARLSBAD
ueneral Fixed Asset Account Group
Schedule of General Fixed Assets by Function
June 30, 1994
General Culture & Public Public
Government Recreation Safety Works Totals
Land $3,152,728 21,993,646 2,150,407 740,763 28,037,544
Buildings 3,019,460 10,410,066 13,996,610 - 27,426,136
Improvements 790,218 1,885,192 372,316 23,471 3,071,197
Furniture and equipment 1,452,844 1,223,086 1,946,545 481,233 5,103,708
Construction in progress - 1.906.649 - - 1.906.649
Total $8.415.250 37.418.639 18.465.878 1.245.467 65.545.234
115
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function
Year Ended June 30, 1994
Function
General government
Culture and recreation
Public safety
Public works
Total
General Fixed General Fixed
Assets at Assets at
July 1. 1993 Additions Deductions June 30. 1994
$ 6,314,854
37,336,550
18,132,259
1.234.110
4,169,220 (2,068,824) 8,415,250
260,245 (178,155) 37,418,640
912,253 (578,635) 18,465,877
52.672 (41.315) 1.245.467
$63.017.773 5.394.390 f2.866.929) 65.545.234
116
CITY OF CARLSBAD
General Fixed Asset Account Group
Schedule of General Fixed Assets by Source
June 30, 1994
As of June 30, 1986 $27,136,537
Net additions subsequent to June 30, 1986:
General fund 14,345,398
Community Development Block Grants 2,759,492
Federal grants 467,867
State grants 683,065
Street lighting 8,612
Park development 6,010,631
Public facilities 9,855,722
Re deve1opment 4.277.910
Total investments in general fixed assets $65.545.234
117
118
ANNUAL DEBT SERVICE REQUIREMENTS
The following schedules present principal and interest debt service requirements for the
City's debt.
119
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements
$1.535.000 - 1969 CARLSBAD PARKING AUTHORITY REVENUE BONDS
Fiscal
Year
1994-95
1995-96
Total
Interest Due
October 1
$ 8,000
4.000
$12.000
Interest Due
April 1
4,000
4.000
Total Principal Due
Interest October 1
12,000
4.000
16.000
125,000
125.000
250.000
Total Annual
Debt Service
137,000
129.000
266.000
$1.500.000 - 1981 CARLSBAD PARKING AUTHORITY REVENUE BONDS
Fiscal
Year
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
Total
Interest Due
August 1
$ 33,000
29,000
25,000
21,000
16,000
11,000
6.000
$141.000
Interest Due
February 1
33,000
29,000
25,000
21,000
16,000
11,000
6.000
Total
Interest
66,000
58,000
50,000
42,000
32,000
22,000
12.000
Principal Due
Februarv 1
100,000
100,000
100,000
125,000
125,000
125,000
150.000
Total Annual
Debt Service
166,000
158,000
150,000
167,000
157,000
147,000
162.000
141.000 282.000 825.000 1.107.000
120
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$15.495.000 - 1993 CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION TAX ALLOCATION BONDS
Fiscal Interest Due
Year September 1
1994-95 $
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
407,670
407,670
401,370
394,808
387,851
380,501
372,889
364,883
356,351
347,426
337,976
328,001
317,633
306,607
295,058
282,851
269,989
256,470
242,295
227,332
211,583
195,045
177,589
159,214
139,920
119,576
98,182
75,525
51,675
26.500
Interest Due
March 1
407,670
401,370
394,808
387,851
380,501
372,889
364,882
356,351
347,426
337,977
328,001
317,633
306,607
295,058
282,851
269,989
256,470
242,295
227,332
211,583
195,045
177,589
159,213
139,920
119,576
98,183
75,525
51,675
26,500
-
Total Principal Due
Interest Seotember 1
815,340
809,040
796,178
782,659
768,352
753,390
737,771
721,234
703,777
685,403
665,977
645,634
624,240
601,665
577,909
552,840
526,459
498,765
469,627
438,915
406,628
372,634
336,802
299,134
259,496
217,759
173,707
127,200
78,175
26.500
240,000
250,000
265,000
280,000
290,000
305,000
325,000
340,000
360,000
380,000
395,000
420,000
440,000
465,000
490,000
515,000
540,000
570,000
600,000
630,000
665,000
700,000
735,000
775,000
815,000
855,000
900,000
950,000
1.000.000
Total $7.940.440 7.532.770 15.473.210 15.495.000
Total Annual
Debt Service
815,340
1,049,040
1,046,178
1,047,659
1,048,352
1,043,390
1,042,771
1,046,234
1,043,777
1,045,403
1,045,977
1,040,634
1,044,240
1,041,665
1,042,909
1,042,840
1,041,459
1,038,765
1,039,627
1,038,915
1,036,628
1,037,634
1,036,802
1,034,134
1,034,496
1,032,759
1,028,707
1,027,200
1,028,175
1.026.500
30.968.210
121
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$9.570.250 - COLLEGE BOULEVARD ASSESSMENT DISTRICT BONDS
Fiscal Interest Due
Year September 2
1994-95 $
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
287,956
275,394
261,714
246,699
230,230
212,485
192,932
171,800
148,600
123,400
96,200
66,600
34.600
Interest Due
March 2
275,394
261,714
246,699
230,230
212,485
192,932
171,800
148,600
123,400
96,200
66,600
34,600
-
Total
Interest
563,350
537,108
508,413
476,929
442,715
405,417
364,732
320,400
272,000
219,600
162,800
101,200
34.600
Principal Due
September 2
335,000
360,000
390,000
425,000
455,000
495,000
535,000
580,000
630,000
680,000
740,000
800,000
865.000
Total $2.348.610 2.060.654 4.409.264 7.290JJOO
Total Annual
Debt Service
898,350
897,108
898,413
901,929
897,715
900,417
899,732
900,400
902,000
899,600
902,800
901,200
899.600
11.699.264
$8.690.000 - 1988 HOSP GROVE CERTIFICATES OF PARTICIPATION
Fiscal Interest Due
Year Aueus t 1
1994-95 $
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
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
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 Principal Due
Interest
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
August 1
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 $2.791.278 2.500.548 5.291.826 7.555.000
Total Annual
Debt Service
866,873
866,733
859,795
860,985
859,880
861,030
854,330
854,000
854,800
857,200
856,000
846,400
848,000
849,200
851.600
12.846.826
122
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$14.370.000 - 1988 CARLSBAD MUNICIPAL WATER DISTRICT
Fiscal
Year
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
Total
Interest Due
November 1
$ 375,624
350,049
322,411
292,491
260,061
224,886
186,724
145,144
100,375
52.012
CERTIFICATES OF
Interest Due
Mav 1
375,624
350,049
322,411
292,491
260,061
224,886
186,724
145,144
100,375
52.012
PARTICIPATION
Total
Interest
751,248
700,098
644,822
584,982
520,122
449,772
373,448
290,288
200,750
104.024
Principal Due
Mav 1
775,000
825,000
880,000
940,000
1,005,000
1,075,000
1,155,000
1,235,000
1,325,000
1.425.000
Total Annual
Debt Service
1,526,248
1,525,098
1,524,822
1,524,982
1,525,122
1,524,772
1,528,448
1,525,288
1,525,750
$2.309.777 2.309.777 4.619.554 10.640.000
1.529.024
15.259.554
$12,689,800 - ENCINA FINANCING JOINT POWERS AUTHORITY
INSTALLMENT PURCHASE AGREEMENT
Fiscal
Year
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Interest Due
August 1
$ 413,850
404,866
395,142
384,738
373,586
361,615
348,749
334,979
320,166
304,297
287,229
268,543
248,555
227,201
204,349
179,933
153,891
126,025
96,272
66,172
34.101
Total $5.534.259
Interest Due
Februarv 1
404,866
395,142
384,738
373,586
361,616
348,749
334,979
320,167
304,296
287,229
268,543
248,555
227,201
204,349
179,933
153,891
126,025
96,273
66,172
34,101_
5.120.411
Total
Interest
818,716
800,008
779,880
758,324
735,202
710,364
683,728
655,146
624,462
591, F 16
555,772
517,098
475,756
431,550
384,282
333,824
279,916
222,298
162,444
100,273
34.101
10.654.670
Principal
Due
August 1
289,782
308,722
327,662
348,496
371,224
395,846
420,468
448,878
477,288
509,486
543,578
581,458
621,232
664,794
710,250
757,600
810,632
865,558
926,166
986,774
1.049.276
12.415.170
123
Total Annual
Debt Service
108,498
108,730
107,542
106,820
106,426
106,210
1,104,196
1,104,024
1,101,750
1,101,012
1,099,350
1,098,556
1,096,988
1,096,344
1,094,532
1,091,424
1,090,548
1,087,856
1,088,610
1,087,047
1.083.377
23.069.840
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$ 942,840 - CARLSBAD MUNICIPAL WATER DISTRICT
STATE LOAN FOR RECLAIMED WATER PROJECTS
Fiscal
Year
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Total
Interest Due
November 30
$ 20,411
26,110
25,044
23,946
22,817
21,654
20,458
19,228
17,961
16,658
15,318
13,938
12,518
11,057
9,554
8,007
6,415
4,777
3,092
1,019
$ 299,982
Principal Due
November 30
42,483
36,784
37,850
38,948
40,078
41,240
42,436
43,666
44,933
46,235
47,577
48,956
50,375
51,837
53,340
54,887
56,479
58,117
59,802
46,817
942,840
Total Annual
Debt Service
62,894
62,894
62,894
62,894
62,895
62,894
62,894
62,894
62,894
62,893
62,895
62,894
62,893
62,894
62,894
62,894
62,894
62,894
62,894
47,836
1,242,822
124
125
CITY OF CARLSBAD
General Expenditures by Function
Last Ten Fiscal Years
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
Total™
$22,279,729
36,206,852
49,443,365
41,960,153
55,745,009
53,133,603
72,999,324
53,985,119
55,104,390
62,668,276
General
Govt.
2,036,101
2,659,901
3,513,602
3,553,212
4,31 £897
4,700,706
5,371,331
5,884,582
6,080,919
5,513,101
Public
Safety
6,342,631
7,105,704
8,554,009
9,290,872
11,069,305
13,090,363
15,230,438
15,989,114
15,734,643
16,351,652
Comm.
Devel.
2,882,192
4,416,726
4,882,885
5,144,681
5,637,655
5,832,346
7,915,308
7,323,586
6,648,158
6,313,757
Housing
& Welfare
860,556
1,076,999
1,385,039
1,705,094
1,614,015
1,808,058
2,081,382
2,385,384
2,808,644
3,135,491
Ubrary&
the Arts
1,431.105
1,603,807
2,058,109
2.362,239
2,460,874
3,710,970
3,127,508
3,090,540
2,987,443
3,202,059
Comm.
Services
3,573,817
6,308,301
5,222,070
6,451, 29a
7,438,346
9,238,961
8,600,552
9,697,220
8,995,690
9,999,373
Capital
Projects
4,634,327
12,315,807
22,967,869
11,118,754
19.879,063
11,104.390
26,665,164
5,639,898
7,192,002
12,933,253
Debt
Service
519,000
719,607
859,782
2,334,003
3,332,854
3,647,809
4,007,641
3.974,795
4,656,891
5,219.590
(1)Includes General, Special Revenue, Debt Service and Capital Projects Funds.
GENERAL EXPENDITURES BY FUNCTION
1993-94
PUBLIC SAFETY 21%
GENERAL GOVERNMENT 1%
$3.5
DEBT SERVICE 1%
(S.2
CAPITAL PROJECTS 21%
112.*
DOLLARS IN MILLIONS
COMMUNITY DEVELOPMENT 10%s«.a
COMMUNITY SERVICES 1t%
(10.0
HOUSING/WELFARE 9%
LIBRARY/ARTS 5% (1.1
(1.2
Source: City of Carlsbad Comprehensive Annual Financial Reports
126
TOTAL EXPENDITURES
LAST TEN YEARS
DOLLARS IN MILLIONS
$80
$60-
$40-
$20-
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
INCLUDES GENERAL, SPECIAL REVENUE, DEBT
SERVICE AND CAPITAL PROJECT FUNDS
SPENDING ON CAPITAL PROJECTS
LAST TEN YEARS
DOLLARS IN MILLIONS
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
127
CITY OF CARLSBAD
General Revenues by Source
Last Ten Fiscal Years
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
Total'1'
$31,272,744
37,078,236
45,626,319
42,944,962
54,565.025
57,970,453
77,371,107
58,440,436
58,115,465
62,239,740
Property
Taxes
5,243,124
6,769,473
8,516,463
8,882,813
11,012.396
12,677,817
14,007,364
15,132.124
15,332,036
13,920,220
Sales
Taxes
5,726,373
6,222,008
6,487,371
7,128,461
8,186,215
9,342,077
9,426,111
8,723,382
9,167.849
10,840,115
Transient
Occupancy
Taxes
1,041,947
1,157,794
1,729,998
1,995,447
2,752,025
3,630,662
3,310,043
3,077,595
3,098,793
3,153,084
Other
Taxes
2,084,724
1,807,457
•1,987,299
4,205,570
3,648,826
4,114,856
3,691,387
5,153,213
3,408,805
4,124,250
Business
Licenses
428,546
471,470
517,972
616,278
696,706
791,715
832,432
910,532
1,071,342
1,093,827
0)Includes General, Special Revenue, Debt Service and Capital Projects Funds.
(2) Includes interdepartmental services category added in 1991-92 and miscellaneous
revenues.
GENERAL REVENUE
LAST TEN YEARS
DOLLARS IN MILLIONS
$100
$80
$60
$40
$20
$0 19151M6 1887 1IIS 1888 11101111111211131114
FISCAL YEAR
PROPERTY TAX AND SALES TAX REVENUE
LAST TEN YEARS
DOLLARS IN MILLIONS
$18
$14
$12
$10
$8
$8
$4
$2
$0
1186 1888 1887 11881188 1880 1881 18821883 1184
FISCAL YEAR
•PROPERTY TAX BSALES TAX
Source: City of Carlsbad Comprehensive Annual Financial Reports
128
Other
Licenses
3,042,110
3,525,394
3,830,931
3,521,242
3,858,173
4,058,540
3,550,013
3,307,980
3,355,533
3,590,927
Intergov-
ernmental
2,060,542
2,924,892
5,608,869
2,506,690
2,876,536
3,267,054
5,405,074
6,087,138
7,107,385
8,019,308
Charges for
Services
8,541,600
9,814,416
12,678,062
8,770,867
7.722,568
10,728,326
10,701,989
7,759,224
5,725,597
9,181,814
Fines and
Forfeits
345,750
288,055
366.597
435,649
478,830
511,890
515,746
312,984
231,877
231,454
Interest
2,638,536
2,857,221
2,944,741
3,422,839
5,644,873
6,002,986
5,737,513
4,826,292
4,866,361
3,996,127
Contributions
From Property
Owners
-
-
-
175,593
4,529,710
402,292
16,515,962
446,813
380,389
344,851
Other"
119,492
1,240,056
958,016
1,283,513
3,158,167
2,442,238
3,677,473
2,703,159
4,369,498
3,743,763
TRANSIENT OCCUPANCY TAX
LAST TEN YEARS
DOLLARS IN MILLIONS
1M6 1010 1917 1M« Ull mo 101 1002 1M3 1M4
FISCAL YEAR
CHARGES FOR SERVICES
LAST TEN YEARS
DOLLARS IN MILLIONS
$14-
$12-
$10-
$1
$0
$4
$2
$0
I | [I O I . ,l\ ! !l I II I i O II
I I [I tl II jl II [III (I il II I II I tl
1MB 1tM 10171011100010001001100210011004
FISCAL. YEAR
Source: City of Carlsbad Comprehensive Annual Financial Reports
129
CITY OF CARLSBAD
Ratio of General Bonded Debt to Assessed Valuation
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
0) Net
Net Assessed
Valuation'1'
$2,495,887,152
2,894,233,860
3,458,390,377
3,939,249,294
4,203,469,146
4,850,671,236
5,474,063,206
5,909,991 ,722
6,066,896,498
5,998,436,686
accpccprl valnp is stat
Outstanding
Principal'2'
900,000
785,000
670,000
550,000
420,000
285,000
150,000
-
-
-
erl at 1 00% of mark
Percent of
Total
Valuation
0.03
0.03
0.02
0.01
0.01
0.01
-
-
-
-
et value. Data frt
Per Capita
Debt
20
16
12,
9
7
4
2
-
-
-
am Countv of Sar
Population'3'
44,566
48,872
55,282
58,888
62,030
63,451
64,264
65,661
67,172
67,923
i Dieao
(2)
(3)
Office of the Auditor and Controller.
Library and sewer general obligation bonds per the City of Carlsbad Comprehensive
Annual Financial Reports.
Population as of January 1 of each year per the State Department of Finance.
GENERAL BONDED DEBT PER CAPITA
LAST TEN YEARS
DEBT IN DOLLARS
$100
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
130
CITY OF CARLSBAD
Computation of Legal Debt Margin
June 30, 1994
25% of net assessed valuation'1' $ 1.499.609.172
Debt limit (15% of net assessed valuation as adjusted) 224.941.376
Amount of debt applicable to debt limit:
Bonded debt(2) 23,860,000
Certificates of participation 7,555,000
Obligations under capital leases 705.390
Total amount of debt applicable to debt limit 32.120.390
Legal debt margin $ 192.820.986
Percent of debt limit 14%
(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:
Parking Authority $ 1,075,000
College Boulevard Assessment District 7,290,000
Tax Allocation Bonds 15.495.000
Total bonded debt $ 23.860.000
131
CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
June 30, 1994
1993-94 Total Assessed Valuation: $6,092,956,316 (after deducting $155,042,466 redevelopment incremental
valuation)
Direct and Overlapping Bonded Debt:
San Diego County Building Authorities
San Diego County Water Authority
Metropolitan Water District
Carlsbad Unified School District Authority
Carlsbad Unified School District Community Facilities District #1
San Marcos Unified School District and Certificates of Participation
San Dieguito Union High School District and Certificates of Participation
Encinitas Union School District, Authority and Certificates of Participation
Mira Costa Community College District Certificates of Participation
Other School Districts
Tri-City Hospital District
Palomar Pomerado Hospital District and Authority
Leucadia County Water District and I.D. #1
Vallecitos Water District and I.D.'s #1, 2 & 6
Carlsbad Municipal Water District Certificates of Participation
Olivenhain Municipal Water District, I.D. #1
City of Carlsbad Authorities and Certificates of Participation
City of Carlsbad 1915 Act Bonds
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT (1)
Less Vallecitos Water District and Improvement Districts
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT
Applicable
4.621%
4.796
0.758
97.021
100.000
24.731
7.458
23.060
24.141
Various
31.421
0.688
49.494 & 1.581
6.483 - 10.866
100.000
29.969
100.000
100.000
Debt
June 30,
1994
$ 39,080,860
652,256
4,909,945
12,239,199
12,020,000
1,350,660
976,625
3,058,909
585,419
85,809
337,776
67,045
117,813
63,189
10,640,000
220,272
8,630,000
29.250.000
$124,285,777
63.189
$124,222,588
<1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-
bonded capital lease obligations.
Ratios to Assessed Valuation:
Direct Debt ($8,630,000) 0.14%
Total Gross Debt 2.04%
Total Net Debt 2.04%
Share of Authorized and Unsold General Obligation Bonds:
Metropolitan Water District $379,000
Carlsbad Municipal Water District, I.D. #1 $98,944
Carlsbad Municipal Water District, I.D. #3 $200,000
State School Building Aid Repayable as of 6/30/94: $108,017
Source: California Municipal Statistics, Inc.
132
CITY OF CARLSBAD
Ratio of Annual Debt Service for
General Bonded Debt to Total Governmental Expenditures
Last Ten Fiscal Years
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
Principal
$115,000
115,000
115,000
120,000
130,000
135,000
135,000
150,000
-
-
Interest
33,723
29,727
27,505
23,179
18,556
13,728
8,652
3,908
-
-
Total
Debt
Service'1*
148,723
144,727
142,505
143,179
148,556
148,728
143,652
153,908
-
-
Total
Governmental
Expenditures'2*
22,297,729
36,206,852
49,443,365
41,960,153
55,745,009
53,133,603
72,999,324
53,985,119
55,104,390
62,668,276
Ratio of Debt
Service to
Governmental
Expenditures %
0.7
0.4
0.3
0.3
0.3
0.3
0.2
0.3
-
.
(1)
(2)
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.
Includes General, Special Revenue, Debt Service and Capital Project funds.
RATIO OF DEBT SERVICE TO GENERAL EXPENDITURES
LAST TEN YEARS
0.8%
0.7%-
0.8%-
0.5%-
0.4%-
0.3%-
0.2%-
0.1%-
0.0%
198S 1886 1987 1981 1989 1990 1991 1992 1993 1994
FISCAL YEAR
Source: City of Carlsbad Comprehensive Annual Rnancial Reports
133
CITY OF CARLSBAD
Water Enterprise
Revenue Bond Coverage
Last Ten Fiscal Years
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1 990-91 n
1991-92
1992-93
1993-94
(D
(2)
Gross
Revenue01
$1,371,214
1 ,522,383
1 ,532,953
1,637,819
1,760,102
2,001 ,832
1 1 ,398,343
1 1 ,504,798
12,267,854
15,188,913
Direct
Operating
Expenses'21
1,119,336
1,317,953
933,368
1 ,334,525
1,195,822
1,415,542
9,172,478
9,520,564
1 1 ,421 ,571
12,286,557
Net Revenue
Available
For Debt
Service
251 ,878
204,430
599,585
303,294
564,280
586,290
2,225,865
1 ,984,234
846,283
2,902,356
Debt Service Requirements
Principal
125,000
130,000
140.000
150,000
157,000
160,000
775,000
685,000
730,000
775,000
Interest
50,138
42,531
38,549
29,096
21,211
12,718
1 ,088,386
842,538
798,696
751,248
Total
175,138
172,531
178,549
179,096
178,211
172,718
1 ,863,386
1,527,538
1,528,696
1,526,248
Coverage
1.44
1.18
3.36
1.69
3.17
3.39
1.19
1.29
0.55
1.90
Includes operating and non-operating revenues.
Total nneratinni oYnpncPS inHirriinn Hpnrenijatinn anri amr^rti^atinn
(3) Effective January 1, 1990, Carlsbad Municipal Water District (CMWD) became a
subsidiary district of the City. Thus, beginning in fiscal year 1990-91, all amounts have
been adjusted accordingly. Debt service requirements after that date include the
Improvement District bonds and the Certificates of Participation issued by CMWD.
Source: City of Carlsbad Comprehensive Annual Financial Reports
134
WATER ENTERPRISE GROSS REVENUE
VS. DIRECT OPERATING EXPENSES
LAST TEN YEARS
DOLLARS IN MILLIONS
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
• GROSS REVENUE S3 OPERATING EXPENSES
WATER ENTERPRISE
NET REVENUE AVAILABLE FOR DEBT SERVICE
LAST TEN YEARS
DOLLARS IN MILLIONS
$3.0-[1
$2.5-
$2.0-
$1.5-
$1.0-
$0.5-
$0.0
p n pn N n i i 11
1985 1986 1987 1988 19891990 199119921993 1994
FISCAL YEAR
135
CITY OF CARLSBAD
Demographic Statistics
Last Ten Fiscal Years
Year
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
2000 (Estimate)
2005 (Estimate)
Square
Miles
35.6
36.0
39.7
39.7
39.7
42.2
42.2
42.2
42.2
42.2
Population01
44,566
48,872
55,282
58,888
62,030
63,451
64,264
65,661
67,172
67,923
93,134(3)
loe^o*3'
Population
Percent
Chanae
9.6
9.7
13.1
6.5
5.3
2.3
1.3
2.2
2.3
1.1
County
Population12'
2,083,359
2,166,169
2,240,659
*2,327,657
2,418,176
2,509,914
2,548,728
2,602,244
2,648,597
2,687,987
3,002,162
3,278,885
City
Population
Percent
of County
2.1
2.3
2.5
2.5
2.6
2.5
2.5
2.5
2.5
1.5
3.1
3.2
<1) Source - State Department of Finance.
(2) Source - County Data Base, San Diego County.
(3) Population for City General Plan and County area - San Diego Association of
Governments Series VIII growth forecast.
POPULATION
LAST TEN YEARS
IN THOUSANDS
70-
60-
50-
40
30
20
10
0
P I I P P I P
, , P P ' ' I P I PI I I I I I I I I I
I II I I I I I I I II
1986 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
POPULATION AS OF JANUARY 1 PER
STATE DEPARTMENT OF FINANCE
136
137
CITY OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Rscal Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
Secured Property
$2,487,497,173
2,893.268,927
3,456,419,183
3,937,879,614
4,197,767,148
4,813,718,827
5,406,790,697
5,823,039,810
5,948,358,026
5,858,987,695
Unsecured Property
75,231,054
77,524,350
80,781,420
98,879,688
109,633,027
147,696,674
182,042,779
205,094,661
242,255,869
270,120,519
Less Property Exemptions
14,605,675
18,616,217
19,248,842
21,859,608
20.083,629
23,581,665
25,387,503
27,414,635
31,586,277
36,151,898
NET TAXABLE VALUE
LAST TEN YEARS
DOLLARS IN BILLIONS
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
Source: County of San Diego Office of the Auditor and Controller
138
Total
Assessed Valuation
2,548,122,552
2,952,177,060
3,517,951,761
4,014,899,694
4,287,316,546
4,937,833,836
5,563,445,973
6,000,719,836
6,159,027,618
6,092,956,316
Homeowner's
Exemptions
52,235,400
57,943,200
65,492,000
75,650,400
83,847,400
87,162,600
89,382,767
90,728.114
92,131,120
94,519,630
Net Assessed
Valuation
2,495,887,152
2,894,233,860
3,452,459,761
3,939,249,294
4,203,469,146
4,850,671,236
5,474,063,206
5,909,991,722
6,066,896,498
5,998,436,686
Percentage
Change
13.7
16.0
19.3
14.1
6.7
15.4
12.9
8.0
2.7
(1.1)
139
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
Building
Permit
Revenue
$1 ,055,738
1,397,129
1,230,100
671 ,779
674,814
1 ,029,750
857,717
219,445
234,063
367,031
Percent
Change
(1.2)
32.3
(12.0)
(45.4)
.5
52.6
(16.7)
(74.4)
6.7
56.8
Estimated
Valuation
213,403,469
263,548,719
245,661 ,491
127,831,606
111,898,109
169,746,343
163,340,462
42,351,906
49,809,414
71,057,243
License
Revenue
428,546
471 ,470
517,972
616,278
696,706
791,715
832,432
910,532
1,071,342
1,093,827
License
Percent
Change
21.8
10.0
9.9
19.0
13.1
13.6
5.1
9.4
17.7
2.1
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
DOLLARS IN MILLIONS
1985198619871988198919901991199219931994
FISCAL YEAR
INCLUDES GENERAL. SPECIAL REVENUE, DEBT
SERVICE AND CAPITAL PROJECT FUNDS
Source: City of Carlsbad Comprehensive Annual Financial Reports
140
CITY OF CARLSBAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
Total
Current Lew
$5,565,653
6,742,713
8,077,224
9,368,469
10,928,048
12,600,253
13,931,230
14,932,937
13,990,844
12,373,782
Total Current
Collections
5,170,614
6,263,242
7,488,152
8,733,089
10,237,929
11,816,888
12,986,628
13,795,525
12,776,232
11,318,017
% of Lew
Collected
92.9
92.9
92.7
93.2
93.7
93.8
93.2
92.4
91.3
91.5
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS
DOLLARS IN MILLIONS
$16
$14
$12
$10
$8
$6
$4
$2
$0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
FISCAL YEAR
•TOTAL LEVY HAMOUNT COLLECTED
Source: County of San Diego Office of the Auditor and Controller
141
CITY OF CARLSBAD
Special Assessment Billings and Collections
College Boulevard Assessment District
Last Eight Fiscal Years
Fiscal Special Assessment Special Assessments
Year Billings Collected
Prior to 1987 N/A N/A
1987 $1,000,362 1,000,362
1988 988,116 987,689
1989 984,780 985,207
1990 985,680 985,670
1991 986,080 760,329
1992 940,780 799,231
1993 508,080 420,476
1994 836,787 685,602
Note: There were no special assessment billings for the College Boulevard Assessment
District prior to the fiscal year ended June 30, 1987. The current delinquency
balance is $606,089.
Source: City of Carlsbad Comprehensive Annual Financial Reports
142
CITY OF CARLSBAD
Principal Employers
1993-1994
Firm
Manufacturing:
Callaway Golf
The Upper Deck
Puritan-Bennett Corporation
Republic Tool & Manufacturing Co.
Smith & Nephew DonJoy Inc.
Cobra Golf
Taylor Made Golf Co., Inc.
Hughes Technology Center
Ashworth, Inc.
Compton's New Media, Inc.
Block Medical, Inc.
Beckman Instruments
Dyna Corporation
International Totalizer Systems
Eaton-Leonard Corporation
Sherwood IMS
Melles Griot Laser Products
Calcitek, Inc.
Product/Service
Golf Equipment
Entertainment Cards
Medical Equipment
Tools
Orthopedic Braces
Golf Equipment
Golf Equipment
Integrated Circuits
Golf Apparel
Software
Medical Supplies
Medical Diagnostic Reagent
Medical Products & Printing Co.
Export Off Track Betting Systems
Vending Machines
Ear Thermometers
Gas Lasers
Dental Implants
Employees
1,200
675
600
400
340
300
250
250
250
220
200
200
170
165
150
150
150
150
Non-Manufacturing:
Plaza Camino Real
La Costa Hotel & Spa
City of Carlsbad
Carlsbad Unified School District
Car Country Carlsbad
Farmer's Insurance - Regional
San Diego Gas & Electric
I sis Pharmaceuticals
Price Costco
Best Western Andersen's Inn
Carlsbad By The Sea
Shopping Mall (5 major Dept. Stores)
Hotel & Health Spa
Municipal Government
Education
Car Dealerships
Insurance
Utility Company
Research and Development
Grocer/Wholesale/Retail
Hotel/Restaurant
Retirement/Residential Care Facility
3,000
950
477
610
500
420
270
185
160
150
150
Source: City of Carlsbad Chamber of Commerce
143
CITY OF CARLSBAD
Principal Taxpayers
1993-94
Taxpayer
San Diego Gas & Electric Company
La Costa Hotel & Spa Corporation
Fieldstone/La Costa Associates
Hughes Aircraft Company
Aviara Land Associates Limited
Aviara Resort Associates Limited
Lyon/Copley Carlsbad Associates
Upland Industries Corporation
Kaiza Poinsettia Corporation
Plaza Camino Real
Type of Business
Power Generation
Hotel & Health Spa
Land Developer
Manufacturer
Land Developer
Land Developer
Land Developer
Land Developer
Land Developer
Shopping Center
Valuation
$315,083,333
206,379,368
174,391,826
97,847,626
67,728,052
44,775,200
41,365,205
39,958,075
31,613,572
29.354.373
Percentage of
total Net
Assessed
Valuation'1'
5.3
3.4
2.9
1.6
1.1
0.7
0.7
0.7
0.5
0.5
$ 1,048,496,630 17.5%
(D Net assessed valuation for 1993-94 - $5,998,436,686
Source: County of San Diego office of the Auditor and Controller
144
CITY OF CARLSBAD
Miscellaneous Statistical Information
1993-94
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 & 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
Number of Pools
Number of Libraries
Number of Volumes
Total Number of Full Time City Employees
July 16, 1952
General Law
Council/Manager
42.19 sq. miles
67,923
4,600
284.45
6
73
1
72
17,768
13.04 million gallons
325
113
36
416.88 acres
1
2
214,620
477
145
146