HomeMy WebLinkAbout; ; 1998-1999 CAFR; 1999-06-30I
California
Nev?
Comprehensive
Annual
Financial Report
For the Fiscal Year Ended June 30, 1999
Front Cover Artwork:
South Carlsbad Library - Construction continued on the City's new 64,000 square foot library in
the Southwest Quadrant of Carlsbad. This library sits on a six acre site, and will provide enough
space to meet the City's needs up to a population of 100,000 residents. The building will include all
public service areas of a full-service library as well as staff administrative offices, and is scheduled
to open in September of 1999.
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30,1999
1200 Carlsbad Village Drive, Carlsbad, CA 92008
760-434-2867
Prepared by the Finance Department
Internet Address: www.ci.carlsbad.ca.us
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1999
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents i
Council's Five-Year Vision Statements 1
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting,
Government Finance Officers Association 37
Certificate of Award for Outstanding Financial Reporting,
California Municipal Finance Officers 38
Location Map 39
List of City Officials 40
Organization Chart 41
Boards, Commissions and Committees 42
FINANCIAL SECTION:
Independent Auditors' Report 43
General Purpose Financial Statements:
• Combined Balance Sheet - All Fund Types and Account Groups 46
• Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund Types 49
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1999
TABLE OF CONTENTS (CONTINUED)
Page
General Purpose Financial Statements (continued):
• Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
(Budgetary Basis) - All Governmental Fund Types 50
• Combined Statement of Revenues, Expenses and Changes
in Retained Earnings - All Proprietary Fund Types 52
• Combined Statement of Cash Flows - All Proprietary Fund Types 53
• Notes to General Purpose Financial Statements 55
• Required Supplementary Information 91
Supplemental Data:
Governmental Funds:
General Fund:
• Schedule of Revenues - Budget and Actual (Budgetary Basis) 94
• Schedule of Expenditures-Budget and Actual (Budgetary Basis) 95
• Comparative Schedule of Revenues 96
• Comparative Schedule of Expenditures 97
Special Revenue Funds:
• Combining Balance Sheet 100
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1999
TABLE OF CONTENTS (CONTINUED)
Supplemental Data (continued):
• Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 102
• Combining Schedule of Revenues and Expenditures - Budget and
Actual (Budgetary Basis) 104
Debt Service Funds:
• Combining Balance Sheet 114
• Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 115
• Redevelopment Bonds Debt Service Fund - Budget and Actual
(Budgetary Basis) 116
Capital Projects Funds:
• Combining Balance Sheet 120
• Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 122
Proprietary Funds:
Enterprise Funds:
• Combining Balance Sheet 126
• Combining Statement of Revenues, Expenses and Changes in
Retained Earnings 127
in
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1999
TABLE OF CONTENTS (CONTINUED)
Page
Supplemental Data (continued):
• Combining Statement of Cash Flows 128
Internal Service Funds:
• Combining Balance Sheet 132
• Combining Statement of Revenues, Expenses and Changes in
Retained Earnings 133
• Combining Statement of Cash Flows 134
Fiduciary Funds:
Agency Funds:
• Combining Statement of Changes in Assets and Liabilities 138
Account Groups:
General Fixed Asset Account Group:
• Schedule of General Fixed Assets by Function 142
• Schedule of Changes in General Fixed Assets by Function 143
• Schedule of General Fixed Assets by Source 144
Schedule of Annual Debt Service Requirements 146
IV
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 1999
TABLE OF CONTENTS (CONTINUED)
STATISTICAL SECTION:
(Not covered by Independent Auditors' Report)
• General Expenditures by Function, Last Ten Fiscal Years 152
• General Revenues by Source, Last Ten Fiscal Years 154
• Ratio of General Bonded Debt to Assessed Valuation and Net
Bonded Debt Per Capita, Last Ten Fiscal Years 156
• Computation of Legal Debt Margin 157
• Schedule of Direct and Overlapping Bonded Debt 158
• Ratio of Annual Debt Service for General Bonded Debt to
Total Governmental Expenditures, Last Ten Fiscal Years 159
• Water Enterprise - Revenue Bond Coverage,
Last Ten Fiscal Years 160
• Schedule of Assessed Valuation, Last Ten Fiscal Years 162
• Construction and Business Activity, Last Ten Fiscal Years 164
• Property Tax Levies and Collections, Last Ten Fiscal Years 165
• Demographic Statistics, Last Ten Fiscal Years 166
• Principal Employers, 1997-1998 167
• Principal Taxpayers, 1997-1998 168
• Top 30 Sales Tax Generators, 1997-1998 169
• Miscellaneous Statistical Information 170
or-t-
O•g
CDO
Carlsbad City Council
*
1999
FIVE-YEAR VISION STATEMENTS
City Council continues to clarify and pursue the vision of Carlsbad that
reflects the pride and quality of life for all who live, work, and play here.
Carlsbad's...
1. Diverse and healthy economic base provides opportunities for employment to the residents of
Carlsbad, economic vitality to the community, and the necessary revenues to support City
services.
2. Policies and decisions implement the General Plan, enforce the Growth Management Plan,
maintain the safety and security of its citizens, and are based on what is best for Carlsbad.
3. Leadership role in local and regional planning issues actively involves confronting governmental
issues at the local, state and national levels.
4. Operates an open government for the betterment of the community in a non-partisan manner
while encouraging active citizen participation and involvement with the City Council, and the
City's Boards and Commissions.
And Carlsbad Efficiently and Effectively
5. Delivers top-quality public services.
6. Manages environmental concerns proactively, including:
0 open space
0 water quality/conservation
0 beach erosion
0 air quality
0 resource conservation and waste reduction
0 wildlife habitats
7. Has a safe and efficient integrated transportation system.
8. Maintains citywide "small town" community spirit.
9. Has a community where continuous and life-long learning are supported and embraced for
people of all ages.
City of Carlsbad
Finance Department
September 28, 1999
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD
Carlsbad, California
1998-99 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL
We are pleased to present the 1998-99 Comprehensive Annual Financial Report of the City of
Carlsbad to the City Council and the City Manager. This report includes financial statements for
the City, the Housing 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 City Council and the
public to assist those interested in understanding the fiscal condition of the City as of June 30,
1999. 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 a general law city
incorporated in 1952. It 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.
The Council is elected at large on a
staggered basis for a term of four
years. The City Clerk and City
Treasurer are also elected to four-year
terms. The City Council appoints the
City Manager and City Attorney.
1200 Carlsbad Village Drive • Carlsbad CA 92008-1989 • (760) 434-2867 • FAX (760) 434-8164
The City covers about 42 square miles and has a population of 77,550. Industries in the area
include a major regional shopping center, a specialty outlet center, 16 auto dealers, 27 hotels
offering 2,900 rooms for tourist lodging, high tech, multimedia, communication and biomedical
businesses, electronics, golf apparel and equipment manufacturers, several business and light
industry parks, and numerous land developers. Carlsbad has created an atmosphere that is very
conducive to attracting new businesses and residents.
Carlsbad is a full-service City providing the following services to its citizens and customers:
• Police department • Development services
• Fire department and paramedic services • Street construction and maintenance
• Water delivery system • Library and arts programs
• Sewer system • Recreation programming for all ages
• Solid waste services • Park lands
• Housing programs
School programs and facilities are provided by four different school districts located within the
City boundaries. Although the City Council has no direct control over these school districts, the
Council recognizes the importance of quality school facilities and programs to Carlsbad's
residents. Council has worked closely with the schools in the past to provide assistance, when
possible, and has included the enhancement of school facilities into the City's strategic goals for
the year.
In addition to the usual City services, Carlsbad offers a variety of programs to help local
residents and businesses. The Carlsbad Police Department offers a vacation security
consultation service to assist residents on security issues in preparation for their vacation. They
have also implemented a year-round bicycle patrol as well as a school resource officer program.
The school resource officers help to maintain order in and around schools, to deter crime
through enforcement, and to create a positive interaction among students, citizens and
educators.
The City also operates a redevelopment agency that encompasses 0.4 square miles of the
downtown area, as well as a housing authority that provides 490 low and moderate income
families with housing assistance. The City's literacy program provides adult education to local
area residents. Older Carlsbad residents receive assistance through the City's senior citizen
programs. In addition, the City provides major support for the Convention and Visitors Bureau.
In the upcoming fiscal year, the City will once again offer Community Activity Grants to
individuals or groups who provide programs to the City that enhance the quality of life for
Carlsbad's residents and/or visitors. One million dollars in an endowment fund has been set
aside to fund these grants. Finally, the City has reserved over $267,000 for support of the arts,
art programs, and the purchase of works of art.
During the past ten years, the City has experienced a significant amount of change. Some of
the more interesting changes are reflected in the following graph. While the City's population
has increased a fair amount during the past decade, property values, sales tax revenues and
transient occupancy taxes have gone up at a much faster rate, enabling the City the means to
consistently provide a high service level for the residents of Carlsbad.
Percentage Increase During the Past Ten Years
Population Net Assessed
Values
Sales Tax
Revenues
TOT
1999 Strategic Goals
The city of Carlsbad's five-year
vision statements define and clarify
the Council's vision of the
Carlsbad of the future (see page
1). In January 1998, the City
Council took further action to
insure the attainment of the vision
by adopting four strategic goals.
Each strategic goal is aimed at
focusing the energies of the City
on actions that will move us closer
to the Council's vision. The
Strategic Goals along with the
Vision Statements are updated
annually.
Based on these directions from
Council, staff develops operational
goals for the year. The operational
goals are the basis for the
development of the operating
budget and guide the City workforce throughout the year. The significant accomplishments
below reflect the City's progress towards the achievement of the strategic goals and the
Council's vision of Carlsbad.
City of Carlsbad
1999 Strategic Goals
Ensure the effective and efficient delivery of top-quality
services to our Community.
Create diverse, broad-based economic strategies to
ensure the financial health of the Community and the
City.
Integrate a comprehensive, efficient transportation
system with "quality-of-life" centered land use
decisions.
Enhance educational opportunities and school
facilities for all segments of the Community.
Significant Events and Accomplishments
During 1998-99, 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.
South Carlsbad Library - Construction continued on the City's new 64,000 square foot library in
the Southwest Quadrant of Carlsbad. This library sits on a six-acre site, and will provide enough
space to meet the City's needs up to a population of 100,000 residents. The building will include
all public service areas of a full-service library as well as staff administrative offices, and is
scheduled to open in September of 1999. The Cole Library will close and undergo extensive
remodeling when the new library is opened.
Regional Communication System - Beginning in 1997 and
continuing through the year 2000, the County, City and several other
participating agencies are installing a new radio communications
system for the public safety and community services operations.
The purpose of this system is to develop regional communication
capabilities to cope with potential disasters and major events, to
improve inter-agency and intra-agency communications, and to
provide the needed technology for all participants to meet their
communication needs in the future. Over $2.6 million was spent in
the current fiscal year to pay off the backbone portion of the system, and a portion of the radio
equipment needed for the system.
Public Works Redesign - Approximately a year-and-a-half ago, the Public Works Major Service
Area was created. During the past year, the Public Works employees have worked together to
create a new structure for the department. The restructuring was implemented to eliminate
internal redundancies and improve service for the citizens. The new Major Service Area
includes:
• Maintenance and Operations - streets, water and sewer
• General Services - parks, facilities and fleet
• Engineering
• Administration
The Public Works Area is responsible for the design, construction and maintenance of all City-
owned and operated facilities, streets, sewer lines, water lines, storm drains, parks and
buildings. This efficient framework enables the City to provide the highest quality of customer
service to our citizens.
Carlsbad Ranch - A factor in the increase in City revenues during the
year, and projected revenues for the future, is the development of an area
in western Carlsbad referred to as Carlsbad Ranch. Carlsbad Ranch
encompasses over 2.9 million square feet of commercial and industrial
LEGOLAND pr°perties'
In October 1997, the Carlsbad Company Stores, a specialty outlet center
comprised mainly of apparel stores and a micro-winery, opened to the public. The outlet center
is currently expanding, and by the 1999 holiday season, 20 new stores should be open, further
increasing sales tax revenues in Carlsbad.
In March 1999, the Legoland California theme park opened to the public, giving Carlsbad Ranch
their largest feature. This family park is primarily for children ages 2-13, has 30 rides and
attractions covering 128 acres, and is based on the Lego building blocks. Legoland has not only
impacted Carlsbad's transient occupancy taxes (TOT), but their operations have also had an
impact on the City's sales tax revenues. Another TOT generator opened in Carlsbad Ranch
was the Grand Pacific Resort and Hotel which began operations in March of 1999. The Grand
Pacific has 90 hotel rooms and 71 time-share units. Future additions to this unique area in
Carlsbad are sites for a community hotel, the Carlsbad Municipal Golf Course, and additional
research and development businesses. These new development businesses will join the
already existing Gemological Institute of America, the National Association of Music Merchants,
Denso America and Natural Alternatives International.
Rancho Carrillo Assessment District - The City formed the Rancho Carrillo Assessment
District and acquired certain capital improvements within this area of Carlsbad during the fiscal
year. The improvements acquired include Melrose Drive from Alga Road to Palomar Airport
Road, improvements to Palomar Airport Road by the Melrose Drive intersection, sewer mains,
water mains and reclaimed water mains and a pressure reducing station as well as riparian
mitigation.
The City is cognizant of the traffic impact on the City due to the development of Rancho Carrillo,
and has spent substantial capital project funds to ensure that the necessary infrastructure is in
place to accommodate this growth.
Construction of Capital Projects - The City's aggressive Capital Improvement Program
continued in 1998-99 with an outlay of approximately $52.1 million. As development continues,
the need for development-related services and new facilities is also growing. During the next
five years, Carlsbad is projected to spend over $219.4 million on capital projects including:
• $77.2 million on circulation system projects
• $37.9 million on sewer projects
• $28.4 million on parks projects
• $27.9 million on civic projects
• $27.8 million on water distribution projects
• $11.5 million on miscellaneous projects
• $8.7 million on drainage projects
These projects are needed in order to meet and/or exceed the City's Growth Management Plan
standards. This Plan requires a standard level of facilities (including libraries, schools, parks,
water, sewer, etc.) be available to meet the increased demands. A large portion of the future
funds are scheduled to improve the circulation of traffic throughout the City. Carlsbad is
dedicated to improving the infrastructure of the City into the foreseeable future through
implementation of its long-range capital building program.
Several major capital projects started or completed in 1998-99 include the South Carlsbad
Library, infrastructure improvements in the Rancho Carrillo area, acquisition of land for the
Business Park Recreational Facility, widening of La Costa Avenue and Palomar Airport Road,
completion of the Cannon Road/Interstate 5 interchange, work on the westerly extension of
Cannon Road, work on Poinsettia Lane and Aviara Parkway extensions, further extension of
Faraday Avenue, realignment of Rancho Santa Fe Road, construction of the Skateboard Park,
and the continuing pavement management program.
Affordable Housing - Construction began this past fiscal year on the Cherry Tree Walk
affordable housing project. This project consists of 42 townhomes with two or three bedrooms,
for households earning less than 80% of the area median income (i.e., a family of four earning
less than $42,000). Construction was also initiated on the 116 unit Rancho Carrillo Apartments.
Of the 116 units, 33 are reserved for households earning less than 50% of the area median
income (AMI), 37 for households earning less than 60% of the AMI, and 46 for households
earning less than 80% of the AMI. The rents for these one, two and three bedroom units will
range from $525 to $1,215 per month.
Year 2000 Compliance and Information Systems - The year 2000 problem (Y2K) stems from
programmers who designed systems and applications to hold the date in two
digit fields rather than four digit fields in order to save valuable memory
space. They did not consider that years later many computers and devices
with embedded chips - traffic lights, elevators, telephone switches - will fail to
recognize "00" as the year 2000 and may either fail completely or interpret
the "00" as the year 1900 with disastrous results. The City has addressed
this issue in several manners.
In late 1993, the City began a systematic upgrade of its hardware and software as part of its
normal business plan. Modern technology had significantly improved data collection methods
and thus increased the level of financial information reporting available at all levels of the City.
The new systems provided the City's decision-makers with much needed financial information
thereby enhancing operational and administrative effectiveness and efficiencies. The year 2000
issue did not prompt the upgrades; however, as the systems were replaced, the City insured that
the new software and hardware was Y2K compliant.
The City has also formed two committees to specifically address the Y2K issue. One of the
committees is focused on insuring that the City can continue to operate its processes. This
committee will look not only at systems and equipment within the City, but also at systems being
utilized outside the City by City staff. Potential issues are being identified by the group for
discussion and possible solutions.
The other Y2K committee is focused on assisting our citizen's and businesses in the event of an
external system failure such as a utility system breakdown, transportation problems, interruption
in the supply of commercial goods and services or other condition that could require
extraordinary intervention by the City. This team is identifying the most critical external services,
evaluating the impact that their interruption could have on the community and then developing
contingency plans for each area. They will also be providing our citizens and customers with
basic preparedness information to promote self-sufficiency in the event of a major failure.
Sale of San Diego Gas and Electric Plant - In May of 1999, the San Diego Gas and Electric
(SDG&E) plant in Carlsbad was bought jointly by Energy and Dynegy. The sale itself did not
have any financial impacts to the City. However, this sale, and the sale of other plants within the
State, has triggered a look at who (the State versus the County) has property tax jurisdiction
over these properties. The State Board of Equalization is about to take final action approving a
rule that would result in local assessment of this plant. This has the potential to impact the City if
the ultimate value for property tax purposes is the sales price. If this were to occur, the property
would appear on the City's tax role under a normal property tax classification, versus unitary tax
classification, with a substantially higher revenue impact on the City.
Total City Operations
In 1998-99, the City of Carlsbad once again enjoyed a fiscal year of solid economic growth.
Beginning with the 1994-95 fiscal year, the local economy has been expanding resulting in rising
revenue levels for the City. Service levels to the citizen's have also grown enabling Carlsbad to
remain a model city providing effective and efficient top-quality services.
City revenues are at an all-time high in 1998-99 totaling $183.2 million; an increase of $25.6
million over last year's total of $157.6 million. The major factors for the revenue gain are
increased sales taxes, property taxes and transient occupancy taxes (TOT), the issuance of the
Rancho Carrillo Assessment District bonds, a large payment made by the Villages of La Costa
for the Rancho Santa Fe Road District, increased water and sewer revenues and higher health
insurance rates charged to departments.
The return of a stronger economy during the past several years, combined with continued
growth in demand for new homes and businesses, has resulted in increased development
activity in the City. In 1998-99, residential development in the City hit a level that had not been
seen since the mid eighties. Low unemployment and a strong economy, coupled with the lowest
interest rates in years, enticed homeowners into buying new homes or trading up to bigger
homes. During the 1998-99 fiscal year, the growth in residential development outpaced the
growth in commercial/industrial development. This is in contrast to the past couple of years,
where commercial/ industrial development was so heavy, it actually outpaced demand. This
past development created a surplus in the commercial/industrial market. This surplus can be
seen in the City of Carlsbad's 22% vacancy rate in commercial/industrial buildings. Residential
development, on the other hand, increased with 2,206 permits issued for new homes in 1998-
99, compared to 1,402 last year.
These development activities, and a very active resale market, have caused property values in
Carlsbad to increase, creating higher property tax revenue. Sales taxes are also rising with the
new retail establishments within the City and high consumer confidence. Transient occupancy
taxes are at their highest levels ever due to the opening of Legoland and new resorts such as
the Four Seasons and the Grand Pacific.
During 1998-99, the City staff of over 820 full and part-time employees provided a complete
range of City services to the 77,500 residents and many businesses in Carlsbad. Spending on
all City programs totaled $142.7 million, an increase of $35.9 million from 1997-98. As in the
past, the biggest reason for this increase was the higher level of capital project spending. Capital
project spending increased by 111.6%, or $28.1 million dollars, which corresponds directly with
the level of development within the City. Other factors which contributed to the growth in
expenditures were additional programs and services offered through General fund financing.
These programs included increases in police staffing, additional recreational opportunities, a
focus on beautification and a clean Carlsbad, refurbishment of several City facilities, new
technology and communication systems, and increased staffing in Engineering and for the new
library.
The remainder of this report will discuss the revenues and expenditures (or expenses) for each
fund type in the City of Carlsbad, for the fiscal year ended June 30, 1999:
Revenue from All Fund Types
(in thousands)
Category
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Enterprise Funds(1)
Internal Service Funds<1)
TOTAL REVENUES
7998-99
$63,323
15,025
1,335
65,712
28,822
8,986
$183,203
7997-98
$ 55,995
11,995
1,372
53,292
26,840
8,111
$157,605
7998-99 over
(under) 1997-98
$ 7,328
3,030
(37)
12,420
1,982
875
$25,598
Percent
Change
13.1%
25.3
(2.7)
23.3
7.4
10.8
16.2%
(1) Includes operating and non-operating revenues
10
Expenditures (or Expenses) from All Fund Types
(in thousands)
Category
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Enterprise Funds(1)
Internal Service Funds0'
TOTAL EXPENDITURES
7998-99
$49,585
6,770
2,485
53,205
22,591
8,015
$142,651
7997-98
$43,082
6,994
4,822
25,147
19,782
6,916
$106,743
7998-99 over
(under) 1997-98
$6,503
(224)
(2,337)
28,058
2,809
1,099
$35,908
Percent
Change
15.1%
(3.2)
(48.5)
111.6
14.2
15.9
33.6%
(1) Includes operating and non-operating expenses
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,
transient occupancy tax (TOT), vehicle
license fees, business license fees,
development revenues and interest
income. Categories of expenditures
include public safety, public works,
community services, community
development, and administrative
functions.
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Historical General Fund Revenue
90-
91
91-
92
92-
93
93-
94
94-
95
Fiscal Year
11
The following table summarizes General fund revenues by major category for 1998-99 and
1997-98:
General Fund Revenues
(in thousands)
Category
Taxes
Intergovernmental
Licenses and Permits
Charges for Services
Fines & Forfeitures
Income from Property
and Investments
Interdepartmental
Other
TOTAL
1 998-99
$43,109
3,881
3,827
6,586
804
1,992
1,934
1,190
$63,323
1997-98
$37,426
3,481
3,303
7,120
445
1,817
1,919
484
$55,995
7998-99 over
(under) 1997-98
$5,683
400
524
(534)
359
175
15
706
$7,328
Percent
Change
15.2%
11.5
15.9
(7.5)
80.7
9.6
.8
145.9
13.1%
The City has once again experienced another year of significant revenue growth. Just like the
previous three years, development has continued to expand, property values are escalating, the
San Diego unemployment rate continues to head downward and consumer confidence remains
high. This was the case not only in Carlsbad, but in the region as a whole. During the year, the
Index of Leading Economic Indicators for San Diego County went on a bit of a roller coaster ride.
However, when all was said and done, the indicators for the fiscal year inched up slightly, a sign
of continued economic prosperity for the City as well as the County. Given the leading nature of
the Index during the last six months of the fiscal year, the outlook for the local economy in early
2000 is very promising.
Carlsbad's General fund revenues grew by $7.3 million, or 13.1%, from the previous fiscal year.
General fund revenues were originally budgeted at $55.4 million, revised upward to $61.9
million, and at June 30, 1999 receipts totaled $63.3 million. The increase in revenue is primarily
attributable to the strong local economy. The most notable improvement is in sales, property
and transient occupancy taxes.
12
Sales Taxes - $17.1 million
The City's largest source of tax
revenue, sales tax, had receipts of
$17.1 million for fiscal year 1998-99,
which was $2.3 million, or 15.6%,
higher than last year. New auto
sales, department stores and
restaurants comprise the largest
economic segments of sales taxes for
the City. With consumer confidence
remaining extremely high, spending
on cars, restaurants and durable
goods continues to grow.
The fastest growing economic segment this year for sales tax, was auto sales, with a
20.2% increase in activity at Car Country Carlsbad. Sales at the Carlsbad Company
Stores also grew significantly as this was their first full year of operations. The
specialty retail center brought in an additional $400,000 in sales tax revenue to the
City. The City should continue to see an increase in sales tax revenues next fiscal
year due to an expansion of the Carlsbad Company Stores in the fall of 1999. Sales
of consumer goods also got a boost this year from the opening of Legoland in March
1999. Sales taxes are received from the sale of certain food items as well as from
the toys and souvenirs sold within the park.
Property Taxes - $14.2 million
Property tax revenues of $14.2 million are up 14% over the previous year. According
to the County of San Diego Assessor's Office, property values in Carlsbad increased
by 15% on the 1998-99 tax roll. This is the largest percentage increase of any city in
the County. In addition to new development within the City, "strong housing
demand, fueled by good economic conditions and a limited supply of available
homes, is pushing both home sales and prices to record levels."1
California Department of Finance, Finance' Bulletin, July 1999, "Economic Update", p.
13
Transient Occupancy Taxes - $7.0 million
Transient Occupancy Taxes i--
(TOT) or hotel taxes, totaled
approximately $7 million for
the year, which is $964,000,
or 16%, above the prior
year's amount. The majority
of this increase is attributable
to the Four Seasons Resort
which was open only six
months of the prior year.
Also adding to the increase
in TOT, was the opening of
the Grand Pacific Resort and
Hotel in March 1999, located
above the Carlsbad Flower
Fields, with its lobby fronting
Legoland. Four more hotels plan to open in Carlsbad over the next 18 months,
which will continue to add to the City's TOT revenue. A June 1999 'Trends in the
Hotel Industry" report produced by PKF Consulting sited, "The impact of the opening
of Legoland in late March can be seen in the 9.2% jump in the average daily room
rate for the first six months of the year in the North Coastal sub-market, and a 13.7
percent increase in June."2
Franchise Taxes - $2.0 million
Franchise taxes rose to $2 million, which is 14% or $241,000 greater than last year's
revenues. Franchise fees come from public utility sources such as SDG&E, trash
collection franchises, and cable franchises conducting business with City limits. The
increase in customer base for each of these industries has contributed to the higher
revenue during the past twelve months.
Business License Taxes - $1.7 million
Business license taxes showed a modest increase in 1998-99, with an 8.3%
increase in revenue over last year's receipts. Carlsbad issues licenses for
approximately 5,600 businesses each year, which includes businesses that are
located outside of the City. The number of new licenses for the year totaled 1,389.
This figure is mainly comprised of home-based businesses and construction
companies.
Vehicle License Fees - $3.3 million
Vehicle license fees (VLF) total $3.3 million, which is an increase of 9.9% over 1998.
VLF are collected by the Department of Motor Vehicles and disbursed by the State
Controller to the City. The State taxes motor vehicles in lieu of local property taxes.
The State reduced the VLF this fiscal year by 25%, but replaced the reduction in
- PKF Consulting. June 1999. " Trends in the Hotel Industry", p. 1.
14
fees with State General fund money. Due to provisions in the 1999-2000 State
budget, the fee will be automatically cut by an additional 10% in the 1999-2000 fiscal
year; a year earlier than originally anticipated. The State General fund will also
replace the revenues lost by this rate reduction. In addition, efforts calling for the
complete elimination of the fee have dissipated among State legislators; a potential
threat to one of our larger revenue sources.
Development-Related Revenues - $6.7 million
Revenue related to development decreased by $230,000, or 3.3%, in 1998-99.
Construction permits and building plan check fees reported large increases, while
planning and engineering fees decreased during the year.
Building permit revenues collected in fiscal year 1999 were $2.5 million, a 20.5%, or
$430,000, increase in revenues compared to last year. Building permits are issued
to cover the cost of regulating construction activities. This allows the City the means
to protect overall community interests. During March 1999, the City set a record for
the number of residential permits issued in one month. Then in May 1999, the City
broke the newly set record by recording 437 housing permits in one month. For the
year, permits were issued for 2,206 new dwelling units, compared to 1,402 during
the previous year. This was the highest level of permits achieved in a year since the
mid-1980's. Commercial/industrial building permits were issued this year for
1,141,200 commercial, and 1,084,900 industrial square feet. This was relatively
close to last fiscal year's production of 900,000 square feet of commercial and 1.6
million square feet of industrial buildings permitted.
Residential Units Trend
1985 to 1999
3000
2500
2000
1500
1000
500 TTTT
I Permits Issued
86 87 88 89 90 91 92 93 94 95 96 97 98 99
Although building permits issued and building department revenues were at higher
levels in 1998-99, there was a decline in engineering and planning department
revenues. Building plan check and inspection revenues at $1.7 million were
$263,000 or 18.9% higher than the previous year. On the other hand, planning and
engineering fees realized declines in revenues of 25.7% and 26.9% respectively.
There was a high volume of master plans processed during the past couple of years,
leading to the increased permitting done this year. This is part of the normal cycle of
development in the City.
15
Other Charges for Services - $2.4 million
Recreation fees total $1 million and are 7.5% higher than in fiscal year 1997-98.
Instructional classes, adult and youth sports, and special events made up the
majority of the recreation fees.
Ambulance fees totaled $858,000 and are ahead of last year's total by 14.8% or
$111,000. This increase is due to an increase in fees that went into effect in
January 1998, as well as an 80% increase in our Medicare reimbursement rate that
went into effect in August 1998.
Fines and Forfeitures - $804.000
Fines and forfeitures consist mainly of receipts from parking citations and the City's
share of fines from moving violations. They total $804,000 for fiscal year 1999,
which is 80.9%, or $360,000, more than fiscal year 1997-98. This increase in
revenues year-over-year is mainly due to new legislation that became effective July
1, 1998. This legislation returned to cities the portion of moving violation fines which
were diverted to the State during the recession.
Income from Property and Investments - $2 million
Income from investments and property for the year totaled $2 million, and 9.7%
more than last year's revenues of $1.8 million. Although interest rates were lower
during the past fiscal year, the average daily cash balances were higher, helping to
increase the City's investment income.
Interdepartmental Charges - $1.9 million
Interdepartmental charges represent general liability, workers' compensation,
information systems, portfolio management and miscellaneous charges allocated to
the various departments within the City, as well as engineering charges allocated to
capital projects. These charges were essentially equal to the prior year at $1.9
million.
Miscellaneous Revenue - $1.2 million
Other revenue sources total $1.2 million; $706,000 higher than the previous fiscal
year. In December 1998, the City received $500,000 in condemnation funds from a
developer which resulted in a $500,000 increase in estimated revenues as well as a
similar increase in appropriations. In addition, in July 1998 the City received a
$100,000 refund for life insurance premiums paid out of the General fund.
16
Total General fund expenditures are summarized in the following table:
General Fund Expenditures
(in thousands)
Category
Policy and Leadership Group
Administrative Services
Public Safety
Community Development
Community Services
Public Works
Non-Departmental
TOTAL
1998-99
$ 2,568
2,666
21,613
5,002
6,848
10,563
325
$49,585
7997-98
$ 2,018
2,651
17,908
4,568
5,944
9,554
439
$43,082
1998-99 over
(under) 1997-98
$ 550
15
3,705
434
904
1,009
(114)
$6,503
Percent
Change
27.3 %
.6
20.7
9.5
15.2
10.6
(26.0)
15.1%
General fund expenditures were $49.6 million; an increase of $6.5 million from 1997-98. The
economy continued to strengthen again this fiscal year, allowing the City to maintain service
levels and expand or add some programs for the third straight year, including:
• Increased police staffing
• Installation of the new regional communications system
• Resurfacing of gym floors
• Implementation of the emergency response mapping system
• New morning lifeguard services at Carlsbad High School
• Additional community services instructional classes
• Additional day camps
• New "Stay 'n' Play" Program at Buena Vista Elementary School
• Additional senior citizen day trips
• Expanded triathlon and beach festival
• Increased library staffing in preparation for the new library
• Increased engineering inspections and plan checks
• Beautification program for all parks
• Quarterly steam cleaning of downtown sidewalks
• Remodeling of Elmwood House and Safety Center
• Increased hours of operation at the City's community pool
17
Significant changes noted in the Major Service Areas were as follows:
Policy and Leadership Group
Spending in Policy and Leadership Group increased by $550,000 this fiscal year.
This group includes the City Council, City Manager, City Clerk, City Attorney and
City Treasurer departments. The increase in expenditures is attributable to the cost
of hiring consultants during the year to determine the feasibility of the City acquiring
the former San Diego Gas and Electric plant. Another factor affecting the increase
in expenditures were the costs associated with the elections held in November 1998.
Administrative Services
Administrative Services, which includes the Finance, Purchasing and Human
Resources departments, had an increase in expenditures in 1998-99 of $15,000.
This minimal increase is the net affect of the higher personnel costs associated with
the implementation of the new performance management and compensation
program, and the reduction in consulting and training costs associated with the
same program.
Public Safety
Spending on public safety programs totaled $21.6 million; up $3.7 million or 21%
from 1997-98. Due to the continued growth in Carlsbad, the Police department
added three sworn and four non-sworn staff during the year. These additions,
combined with additional costs previously funded with Special Revenue funds
(juvenile diversion, D.A.R.E. maintenance and operation expenses, and expenses
associated with the School Resource Officer Program), has pushed Police
department expenses higher in 1998-99. The Agua Hedionda Lagoon patrol has
also been moved from Community Services to the Police department, and the
animal services contract was transferred to Police from non-departmental expenses.
The largest factor affecting fire protection expenditures for the year was the payoff
during the year of the 800 MHz equipment for the regional communications system
of $1.6 million.
Community Development
Community Development, which encompasses the Hiring Center, Geographic
Information Systems (GIS), Economic Development, Community Promotion (CCVB),
Land Use Planning, Building Inspection and Community Development
Administration, had expenditures of $5 million for fiscal year 1998-99; an increase of
$434,000. The increase in expenditures can be traced to higher miscellaneous
professional services in the building and planning areas. These expenditures
support the increased workload associated with the issuance of building permits.
Community Services
Community services consists of the Library, Cultural Arts, Recreation, Park
Planning, and Senior Citizen programs. This group had total expenditures of $6.9
million for the year; an increase of $904,000. The majority of this increase was for
Library services, including increased staffing in preparation for the opening of the
new library, and the shift of funding sources for expenditures from Special Revenue
18
funds to the General fund, as other funding sources have been dwindling. Additional
dollars were expended in the recreational area to upgrade the Recreation brochure,
and to expand the triathlon beach festival, youth sports programs and various
recreation programs.
Public Works
Engineering, Parks Maintenance, Streets and Facilities, Building Maintenance,
Traffic Sign Maintenance and Public Works Administration comprise the Public
Works major service area. Total expenditures in 1998-99 for Public Works were
$10.6 million; an increase of $1 million over 1997-98 expenses. This is the first full
year for the Public Works Administration department, established for the coordinated
management of the various departments, functions, and programs within Public
Works. This program was created during the City reorganization in mid-year 1997-
98. The other major factor affecting total Public Works expenditures was the
increase in street maintenance expenses. Gas Tax revenue was formerly used to
fund major street maintenance expenses for years prior to 1998-99. Starting in
1998-99, Gas Tax revenue was only used to fund Capital Improvement Projects and
the General fund took over the funding of the Major Street Maintenance Projects,
creating a variance of $544,000.
Non-Departmental
Non-departmental expenditures consist of programs not specifically associated with
a department. Examples include fees paid to the State to keep beach parking free
at the South Carlsbad State Beach, fees paid to the County for property tax
administration, and annual City audit charges. This category decreased by
$114,000 in 1998-99, because animal regulation expenses were moved from the
non-departmental area to the Police department budget.
Special Revenue Funds
The City's Special Revenue funds, which account for the collection and use of special or
restricted revenues, received $15 million in total revenue in 1998-99. This is an increase of $3
million, or 25.3%, over last year. Much of this increase was the result of LCP agriculture
mitigation fees received from the State for mitigation associated with the development along the
coastal region of Carlsbad. In addition, there was an increase of $891,000 in Villa Loma
affordable housing credits sold to developers during the fiscal year to satisfy the affordable
housing obligations under the City's Inclusionary Housing Ordinance.
19
Special Revenue Funds
Revenues
(in thousands)
Category
Taxes
Intergovernmental
Charges for Services
Fines and Forfeitures
Income from Property
and Investments
Property Owner Contr.
Donations
Other
TOTAL
7998-99
$ 1,679
4,069
65
132
986
7,397
350
347
$15,025
1997-98
$1,603
4,830
73
79
1,252
3,126
218
814
$11,995
1998-99 over
(under) 1997-98
$ 76
(761)
(8)
53
(266)
4,271
132
(467)
$3,030
Percent
Change
4.7%
(15.8)
(11.0)
67.1
(21.3)
136.6
60.6
(57.4)
25.3%
There was one new Special Revenue fund added in fiscal year 1998-99, the Library
Endowment fund. This fund was started with a citizen donation, to assist the City in the
development of their auditorium at the new South Carlsbad Library.
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.
Cultural programs including grants from the California Library Services Act and
California Arts Council, and the Civic Arts program.
Donations, scholarships and bequests for designated library and community service
activities.
Endowments designated for community assistance, the preservation of the Flower
Fields at Carlsbad Ranch, the new auditorium at the South Carlsbad Library and
mitigation credits set aside for future mitigation projects.
Special programs such as the Police Asset Forfeiture Program, Citizens Options for
Public Safety (COPS) Program, Law Enforcement Block Grant, library computer
purchase and Adult Literacy programs, and habitat preservation programs.
Welfare programs such as the HUD-sponsored Carlsbad Housing Authority rental
assistance program, Affordable Housing development, and the Senior Nutrition
Program.
20
Special Revenue Funds
Expenditures
(in thousands)
Category
Public Safety
Community Development
Community Services
Public Works
TOTAL
7998-99
$ 315
3,635
694
2,126
$6,770
7997-98
$ 723
3,659
729
1,883
$6,994
7998-99 over
(under) 1997-98
$ (408)
(24)
(35)
243
$ (224)
Percent
Change
(39.6)%
(0.7)
(4.8)
12.9
(3.2)%
Spending in Special Revenue funds totaled $6.8 million in 1998-99; a decrease of $224,000
from 1997-98. Many expenditures previously funded with Police Asset Forfeiture funds,
including juvenile diversion and D.A.R.E. maintenance and operation expenses, as well as all
expenses associated with the School Resource Officer Program, are now funded out of the
General fund, creating the reduction in Public Safety expenses in 1998-99. Federal cutbacks in
the Housing Program caused a reduction again in the amount of HUD rental assistance
payments made by the City, reducing the amount of Community Development expenses for the
year. Community Services decreases are attributable to the shift of funding sources for
expenditures from Special Revenue grants to the General fund, as grant funding sources have
been dwindling. In 1998-99, the City used Gas Tax funds to fund several capital projects
including pavement management, traffic signals, curbs and other street-related projects, thus
creating the increase in Public Works expenditures.
Debt Service Funds
The City's Debt Service funds record the payment of interest and principal on the current portion
of outstanding debt not recorded in other funds. As of June 30, 1999, the total debt payable
from non-enterprise sources, excluding obligations under capital leases and advances, was
$21.3 million. City debt is comprised of the Hosp Grove Certificates of Participation (COPs) and
the Redevelopment Tax Allocation bonds. During fiscal year 1997-98, the College Boulevard
1915 Act Assessment District bonds were refunded. The refunding removed any commitment of
the City's General fund to the bond issue; so, it is no longer shown as a Debt Service fund. No
general obligation bonds are outstanding as of June 30, 1999.
21
Debt Service Funds
Revenues
(in thousands)
Category
Taxes
Income from Property and
Investments
Total
7998-99
$1,246
89
$1,335
1997-98
$1,214
158
$1,372
7998-99 over
(under) 1997-98
$ 32
(69)
$(37)
Percent
Change
2.6 %
(43.7)
(2.7)%
Debt service revenues totaled $1.3 million; a decrease of $37,000 from last year. The biggest
factor causing this decrease is the elimination of the College Boulevard Assessment District
bond issue from the Debt Service funds in the early part of 1997-98. Additionally, lower average
cash balances in the Hosp Grove and Redevelopment funds during the year caused lower
interest earnings in those funds.
Debt Service Funds
Expenditures
(in thousands)
Category
General Government
Principal
Interest and Fiscal Charges
Miscellaneous
TOTAL
7998-99
$ 15
825
1,645
0
$2,485
7997-98
$ 15
1,663
2,004
1,140
$4,822
7998-99 over
(under) 1997-98
$ 0
(838)
(359)
(1,140)
$(2,337)
Percent
Change
0%
(50.4)
(17.9)
(100.0)
(48.5)%
Debt-related expenditures decreased $2.3 million in 1998-99. The refunding of the College
Boulevard Assessment District bonds as well as the Hosp Grove COPs created much of this
decrease. One-time debt issuance costs of $1.1 million in 1997-98, combined with the
decreased principal payments surrounding the refunded College Boulevard debt, represent the
decrease in expenditures.
22
Capital Projects
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 Project funds for the City of Carlsbad include those supported by the
City's public facilities fees, community facilities district (Mello-Roos) taxes, 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
Income from Property
and Investments
Contrib from Property Owner
Miscellaneous
TOTAL
1998-99
$1 1 ,474
9,852
154
5,859
38,366
7
$65,712
1997-98
$12,742
12,048
121
5,633
22,736
12
$53,292
1998-99 over
(under) 1997-98
$(1,268)
(2,196)
33
226
15,630
(5)
$12,420
Percent
Change
(10.0)%
(18.2)
27.3
4.0
68.7
(41.7)
23.3 %
The City's continued high rate of development spurred the increase in Capital Project fund
revenues. Tax revenues result from the collection of community facilities district (Mello-Roos)
special taxes and the license tax on new construction. The 1998-99 decrease in tax revenues is
the result of lower Mello-Roos special tax payoffs this year. In 1997-98, the Leucadia County
Water District paid over $2.3 million for their share of the La Costa Avenue widening project. In
the current fiscal year, they only paid $350,000, causing the $2 million reduction this year in
intergovernmental revenues. Increases in income from property and investments are the result
of the maintenance of larger cash balances during the year. The increase in contributions from
property owners is due to a large payment made by the Villages of La Costa for the Rancho
Santa Fe Road District.
23
Capital Projects Funds
Expenditures
(in thousands)
Category
General Government
Capital Outlay
TOTAL
7998-99
$ 1,209
52,107
$53,316
1997-98
$ 1,293
23,854
$25,147
1998-99 over
(under) 1997-98
$ (84)
28,253
$28,169
Percent
Change
(6.5)%
118.4
112.0%
Spending on capital projects totaled $52.1 million; an increase of 118.4% from 1997-98. With
the City's continued development, the need to ensure facilities are available to service the
developing areas as well as the current residents is paramount. Spending on capital projects
continues to increase enabling the City to meet and/or exceed the needs of its citizens and the
standards prescribed in the City's Growth Management Plan. Much of this spending during the
past year was done to facilitate the traffic needs of the City. Projects planned for 1999-2000
continue this trend with $62.4 million of new capital projects budgeted in the upcoming year.
The City Council continues to set a high priority on the construction of quality infrastructure
improvements.
Capital Project Expenditures
Versus Residential Permits Issued
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
'Capital Expenditures
'Permits Issued
The City has historically matched capital project spending with the residential development
occurring within the City, ensuring that the necessary infrastructure is in place for new Carlsbad
residents. The anomaly in 1991 occurred when the City acquired Alga Road and certain
improvements along the road within the Alga Road Assessment District.
24
Some of the key capital projects under construction or completed during this year include:
South Carlsbad Library - Construction
of the $22 million South Carlsbad
Library continued this year, with
funding from the Community Facilities
District No. 1 (CFD #1). This 64,000
square foot library is scheduled to open
in September 1999. The Cole Library
has closed temporarily, and is undergoing extensive remodeling.
Business Park Recreational Facility - In fiscal year 1998-99, the City acquired 13
acres to develop a recreation facility for the industrial corridor in Carlsbad. Proposed
amenities may include a fitness center, swimming pool, ball fields, soccer fields,
basketball, handball, volleyball courts, picnic areas, jogging trails, etc. It is
anticipated that staff will meet with the business park community to gather input into
the most-needed amenities. The City may explore privatization options for a portion
of the development which may accelerate the development of the park.
Street Improvements
Improvements to streets,
highways, sidewalks, and traffic
signals continue in the city of
Carlsbad. Significant progress
has been made on the traffic
circulation projects in response to
and in anticipation of current and
future development within the
City. The Cannon
Road/Interstate 5 Interchange
was completed during the year
for the opening of Legoland. The
La Costa Avenue and Palomar
Airport Road widening projects are currently under construction. Other major
circulation projects under construction or design include Cannon Road West,
Faraday Avenue, Rancho Santa Fe Road and Poinsettia Lane-Aviara Parkway.
25
Rancho Carrillo Assessment District - The City formed the Rancho Carrillo
Assessment District and acquired certain capital improvements within this area of
Carlsbad during the
fiscal year. The
improvements
acquired included
Melrose Drive from its
existing northern
termination north of
Alga Road to Palomar Airport Road,
improvements to Palomar Airport Road
approximately 1000 feet east and 700 feet
west of the Melrose Drive intersection, sewer
mains, water mains and reclaimed water mains
and a pressure reducing station along the
roadway improvements, riparian mitigation for the roadway improvements, and
relocation of sewer mains and grading for expansion of Poinsettia Lane.
Skateboard Park - Construction was completed this year on a 25,000 square foot
skateboard park facility. This project includes night lighting as well as numerous
curbs, ramps, rails, steps, and other low hazard physical features designed to
challenge skateboard users of all skill levels and abilities. All ramps and other
surface features of the park are limited to four feet in height to reduce hazard levels
and to allow for unsupervised use of the park. The park also includes a work bench
area that provides users a place to repair and adjust their skateboards.
Pavement Management Program - The Pavement Management Program is an
ongoing program designed to extend the service life of City streets and to maintain a
smooth and safe driving surface for vehicles. The City utilizes a pavement
management database program to determine pavement management needs for the
purpose of establishing which streets are to be oil sealed, chipped sealed, overlaid
or reconstructed. On a periodic basis, the condition of the roads are field surveyed
and the pavement management database is updated to reflect current conditions.
Each year, specific pavement management projects are defined and funding is
transferred into a pavement management project account.
Enterprise Operations
The City of Carlsbad manages water, sewer, solid waste, and a planned 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.
26
A 250-acre municipal golf course is under design directly south of the future Veterans Memorial
Park. The golf course will be centrally located and directly accessible to major roads and the
interstate freeway. Development plans are underway, with completion scheduled for sometime
in the near future.
Enterprise Funds
Total Revenues, Expenses and Net Income
(in thousands)
1998-99
Revenues
Expenses
Net Income
1997-98
Revenues
Expenses
Net Income
Percent Change
Water
$19,942
(17,172)
$ 2,770
$18,357
(15,162)
$ 3,195
(13.3)%
Golf Course
$300
(214)
$ 86
$289
(216)
$ 73
17.8%
Sewer
$ 7,897
(5,076)
$2,821
$ 7,532
(4,294)
$ 3,238
(12.9)%
Solid Waste
$683
(129)
$554
$662
(110)
$552
.4%
Most of the increase in water revenues during the current fiscal year is due to the higher-than-
average rainfall during the previous fiscal year. The increase in water expenditures was much
higher than the increase in water revenues, creating the reduction in net income for the year.
Purchased water costs were higher this year due to a drier winter and a larger customer base.
Another factor in the higher expense level this year was the payoff of the Water fund's portion of
the 800MHz lease in January of 1999 of $416,000.
Golf Course revenues of $300,000 were slightly higher than 1997-98 figures. The majority of
these revenues is derived from income from property and investments. Golf course expenses in
1998-99 consist of primarily street assessments and Mello-Roos taxes associated with the land
purchased for the municipal golf course.
Sewer revenues rose due to increased service charges resulting from the larger customer base,
a by-product of the continuing development within the City. In addition to the increased service
charges, higher average cash balances throughout the year have created increased interest
revenue. Expenses for sewer operations total $5.1 million; $782,000 more than the previous
year. One of the main reasons for the increase was the $416,000 payoff of the 800MHz lease
made in January 1999. In addition, payments to the Encina Wastewater Authority, operator of
the sewer plant, were also higher this year due to the need for additional reserves.
Solid waste revenues represent charges for recycling fees, non-jurisdictional fees based on the
level of tonnage processed by Waste Management, and interest earned on available cash
balances. The increase in solid waste expenses for the year is due to a new contract the City
27
has entered into with the City of Vista for the disposal of household hazardous waste. This
contract was previously handled by the County.
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.
Internal Service Funds
Total Revenues, Expenses and Net Income
(in thousands)
1998-99
Revenues
Expenses
Net Income
1997-98
Revenues
Expenses
Net Income
Percent Change
Fleet
Management
$ 3,091
(2,301)
$ 790
$ 2,826
(2,119)
$ 707
11.7%
Health
Insurance
$ 2,789
(2,636)
$ 153
$1,972
(2,286)
$ (314)
148.7%
Information
Systems
$ 1,619
(1,653)
$ (34)
$1,378
(1,271)
$ 107
(131.8)%
Risk
Management
$ 849
(670)
$ 179
$1,102
(668)
$ 434
(58.8)%
Workers'
Compensation
$ 638
(755)
$(117)
$ 833
(572)
$ 261
(144.8)%
Self-Insurance Programs - Health Insurance. Risk Management and Workers' Compensation
The City is self-insured for general liability claims, workers' compensation and its major health
insurance plan.
Revenues in the Risk Management fund are down by 23% from last year. This revenue
represents charges to other departments for general liability coverage. Due to a healthy fund
balance, charges to other departments were decreased by 25% in 1998-99. Claims expense
and other related costs for the Risk Management Self-Insurance fund totaled $504,000; down
$121,000 from 1997-98. The City is a member of PARSAC, a risk management pool covering
most losses exceeding $500,000, with catastrophic losses covered by additional excess liability
insurance. The drop in claims expense follows a similar decline in the number of lawsuits in
which the City has been a part. Higher general and administrative expenses of $123,000 reflect
additional staff time being allocated to risk management in order to expand upon our safety
programs city-wide. Effective July 1, 1999, the City became a participating member of the
California Municipal Excess Liability Program, a group purchase program for general liability
coverage. Under this program, the pool provides coverage up to a maximum of $10,000,000 per
occurrence with a self-insured retention provided by the City in the amount of $500,000.
28
The estimated claims payable for general liability at year-end was $137,000; down $92,000.
This is the third year in a row the estimated claims payable has decreased by year-end.
Working capital totaled $3.1 million at June 30, 1999. Of this amount, $1.5 million is required to
be retained in the fund under the City's contract with the Insurance Authority.
Revenues in the Workers' Compensation fund are down by over 23% from last year. This
revenue represents charges to other departments for Workers' Compensation coverage. Once
again, due to a healthy fund balance, charges to other departments were decreased by 25% in
1998-99. Workers' Compensation claims expense for 1998-99 amounted to $695,000,
compared to $486,000 in 1997-98. The increase in expenses was due to a 17.5% increase in
indemnity claims during the past fiscal year. Workers' Compensation estimated claims payable
at year-end was $834,000; an increase of $136,000 from 1997-98. Working capital at June 30,
1999 is $1.2 million.
The City also operates a health insurance Internal Service fund for collecting premiums, paying
claims, premiums, administrative costs, and holding reserve funds. Revenues are generated by
charging departments for their share of the estimated health insurance costs during the year.
Health insurance rates charged to the departments were increased during the year to offset
higher health insurance costs incurred by the fund. For fiscal year 1998-99, the health
insurance Internal Service fund produced operating income of $154,000.
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 valued at more than $5,000, is to set aside a certain amount of money each
year in a replacement fund to ensure that there will be sufficient funds available when the
equipment needs to be replaced. Useful lives of vehicles were extended back in 1994 as a cost
savings measure. Vehicle purchases totaled $904,000; $100,000 less than the previous year.
Fleet operating expenses during 1998-99 were $2.3 million. The $4.9 million year-end working
capital is earmarked for vehicle replacement.
The City's Information Systems Internal Service fund collects revenues and expenses related to
the providing of resources that will support the various City departments in the performance of
work tasks through computer automation and telecommunication services. The department also
strives to increase citizen access to City services through the use of technology. At year-end,
working capital increased to $1.1 million; up $169,000 from 1997-98.
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,
assessment district reserve funds, and employee and employer payroll tax withholding accounts.
29
The City held a total of $17.9 million in Agency funds as of June 30, 1999, compared to $17.6
million at the end of 1997-98. This increase is due to the net effect of the addition of the Rancho
Carrillo Assessment District reserve and redemption funds, and the removal of the remaining
deferred compensation trust funds from the City books.
Cash Management
The City Treasurer is charged with the design of an effective cash management and investment
program consistent with the California Government Code, the Carlsbad Municipal Code, and the
Carlsbad Investment Policy. Among other activities, this includes arranging for banking
services, forecasting cash receipts and expenditures, investing all inactive cash, and reporting
investment activities. City Council, with the advice of the City Treasurer, annually adopts a
comprehensive investment policy specifying, among other things, investment objectives and
strategy, type and term of investments, reporting requirements, and investment oversight.
Investments are made either as pooled investments or as investments held separately.
Pooled investments are made and managed internally by the City Treasurer, and include the
inactive cash of agencies controlled by the City and the various funds of those agencies. Cash
is received into the pool without regard to the agency or fund from which it originated. At the end
of fiscal year 1998-99, total assets in the pooled investments were $299.5 million. This
represented an increase of $45.5 million, or 17.9%, from fiscal year 1997-98. Pooled
investments are generally recorded at their market value as required by the Government
Accounting Standards Board statement #31.
The investments in the Treasurer's Pool earned approximately $15.8 million in interest, which
was an increase from $12.8 million earned in the previous fiscal year, due to the maintenance of
a higher average cash balance in the Treasurer's Pool throughout the year. The average yield
of the pooled investments for fiscal year 1998-99 decreased to 5.71% from 5.89% in fiscal year
1997-98.
Investments held separately are managed by the Finance Director and generally include bond
proceeds and other funds which are individually invested. Total assets of investments held
separately were $16.2 million at the end of fiscal year 1998-99.
The fiscal year 1998-99 pooled investments and the investments held separately include the
types of instruments indicated on the next page.
30
Treasurer's Pooled Investments
Cash and Deposits
Federal Agency Obligations
Treasury Notes
Corporate Notes
Commercial Paper
Investment Pool (LAIF)
SUBTOTAL
Investments Held Separately
Cash and Deposits
Mutual Funds
Guaranteed Investment Contracts
Investment Pool (LAIF)
SUBTOTAL
TOTAL
Interest Rates
4.10-5.10
0.00 - 8.38
4.75 - 6.75
5.25 - 9.50
5.06 - 5.76
5.10-5.65
Amount Invested
(In Million's)
$ 2.3
176.6
9.2
88.5
0
22.9
$299.5
0.00 - 3.25
5.54 - 9.33
5.10-5.65
$ .5
2.9
3.7
9.1
$ 16.2
$315.7
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.
CITY OF CARLSBAD
PROPOSITION 4 SPENDING LIMIT VERSUS
APPROPRIATION OF PROCEEDS OF TAXES
(IN MILLIONS)
180
160
140
120
100
80
60
40
20
^Spending Limit
I Approp of Taxes
111 Til 111 11
I I 1 1 I I 1 I 1
O)0)
CMCJ>cn
cocncn
IT)cnCn $at 0O>
COO)0>
0>O>cnIn 1991-92 state law allowed the
recalculation of the City's limit with new ^^^.^^^^^T_
inflation factors. Using population growth in
San Diego County and growth in State per capita income allowed the Gann limit for 1998-99 to
increase to $162.6 million. Appropriations of "proceeds of taxes" was only $39.7 million, thus
allowing the City a healthy margin of $122.9 million.
31
Economic Outlook
San Diego's strengthening economy, along with Carlsbad's recognition as an important regional
employment center and a top-quality community, have brought heightened levels of local real
estate development, both planned and speculative, to the commercial, industrial and residential
marketplace. As a result of new construction, Carlsbad has become one of the fastest growing
cities in the County.
Carlsbad's industrial market reached its peak in 1998, with over 3.1 million square feet slated for
construction. Much of the new construction activity was speculative, and the direct result of
growing demand for space created from new job growth and lower unemployment rates in the
region (4.2% in 1997 to 3.5% in 1998). Although the regional and local economies are expected
to continue to grow, planned construction in the commercial/industrial market in Carlsbad for
1999 is expected to drop back to approximately one million square feet. As new speculative
space has entered the market, it has placed an upward pressure on vacancy rates (currently
22% or 2.4 million square feet), and consequently, slowed local construction activity. The
current vacancy rate and historic levels of absorption may leave us with an inventory of industrial
and office space that could take two to three years to fill. Currently, there are fewer than 80
acres available in Carlsbad's industrial corridor for new construction. Within the next five to ten
years, there will be an additional 300-400 acres available in the industrial corridor, but planning
in these areas has yet to be completed.
Carlsbad's commercial growth in 1999 has also been robust with the opening of Legoland, the
Grand Pacific Resort and Hotel, Marriott Residence Inn, and a number of new restaurants.
During the next couple of years, Carlsbad will see the addition of more hotels and development
of a few commercial centers. However, the long-term future of commercial development
remains uncertain as the City Council evaluates the future of commercial land uses within the
City.
During the mid-1990's, residential construction activity slowed considerably as a result of a
sluggish economy. However, residential developers continued to process plans for new
residential projects with the hope they would obtain approvals and be in a position to begin
construction when the economy gained momentum. The late 1990's presented the residential
developer with just such an opportunity. In fiscal years 1997 and 1998, new permits for
residential units averaged 1,137 per year, and in fiscal year 1999, the City will hit a ten year high
with 2,206 units. Ninety-five percent of the residential growth between 1997 and 1999 has been
focused in the southeast and southwest quadrants of the City. While residential growth is
expected to continue at high levels for the next several years, it most likely will be at a slower
rate. This is due to fewer projects in the development review pipeline, and the possibility that
continued increases in mortgage interest rates will create a greater affordability gap for families
wanting to purchase a new home. We also expect to see a greater number of multifamily rental
units under construction as a result of the limited supply and growing demand for more
affordable housing.
The City's Growth Management Program holds the key to the timing of many of the develop-
ments. The program was established by a vote of the citizens in 1986 and is designed to ensure
32
that new development occurs in conjunction with careful planning of infrastructure and service
needs. Under the Growth Management Program, development occurs only when infrastructure
improvements required to serve the development are financed and constructed as a part of the
development. Capital projects are phased to closely match incremental growth demands.
Standards have been established in eleven areas including circulation, City administration,
schools, libraries, fire protection, parks, drainage, water, sewers, and open space.
As a result of the Growth Management Program, fee programs are in place to ensure that funds
are available to pay for public facilities as they are needed. An outgrowth of the Growth
Management Program is the long-range Capital Improvement Program (CIP) which covers the
current year through buildout of the City. The CIP anticipates future residential growth at over
600 units per year and annual commercial/industrial development between 450,000 and
765,000 square feet per year. With this level of growth, Carlsbad expects to construct between
$26 and $62 million in improvements every year including new parks, libraries, streets, traffic
signals, water and sewer lines, and other facilities. This aggressive construction program can
place a burden on the operating budget which must be managed through careful scheduling to
match demands with resources. Uncontrolled demand could easily outpace the City's ability to
pay for services.
Tourism is one of Carlsbad's fastest growing business segments and a growing source of
income to the City's General fund. The City recognizes the importance of its tourist industry
through its financial support to the Convention and Visitors Bureau and the annual appropriation
of funds to keep the state beach
parking free for all beach users. A
major boost to the tourism industry
occurred in the current year with
the opening of Legoland family
theme park and the Grand Pacific
Resort and Hotel. Construction
work has begun, or is in the final
stages, on several other resort and
timeshare properties in the City
including the Marriott Residence
Inn in the Carlsbad Research
Center, the Marriott Courtyard near
the McClellan-Palomar Airport, and
the Hilton Gardens on the coast. It
is anticipated that these new resorts will significantly boost the City's transient occupancy tax
and sales tax collections.
Sales tax, the City's largest single revenue
source to the General fund, is projected to
continue to increase in the near future. This
increase can be attributed to the first full-year
operation of Legoland, the projected opening of
a number of new restaurants and the Phase II
upscale outlet mall. This expansion will add an additional 20 stores to the over 50 stores
COM PAN ¥ STORED
expansion of Carlsbad Company Stores, an
33
already in the mall, and is expected to be completed by the end of 1999. The continuation of a
healthy economy and strong consumer confidence will also add to the sales tax revenue in the
upcoming year.
Through careful planning and prudent financial management, Carlsbad has weathered the roller
coaster ride of the 1990's, and is now positioned to enter the 21st century in strong financial
health. The City's revenue projections reflect an expectation of increasing housing prices,
continued strong development, but at a lower growth level than in the past two years, and
continued consumer confidence. We have also projected increases in sales tax and transient
occupancy taxes based on the increase in tourism expected from Legoland and several new
hotels currently under development. These increased revenues will enable the City to enhance
service levels, ensuring the maintenance of a high-quality of life for Carlbad's residents.
Carlsbad is focused on achieving its mission of providing top quality services to our citizens and
customers in a manner that enhances the quality of life for all who live, work and play in
Carlsbad.
Certificate of Award for Outstanding Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Carlsbad for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June
30, 1998. This was the second consecutive year that the City has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to GFOA to determine its eligibility for another
certificate.
In addition to the GFOA award, 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, 1998. We believe
our current report continues to conform to the program requirements.
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:
Introductory Section - This section contains the table of contents, letter of transmittal,
CAFR awards, location map, list of City officials, organization
chart, and the boards, commissions and committees chart.
34
Financial Section - This section contains the combined or summarized financial
statements for all funds, as well as the notes to the financial
statements and required supplementary information.
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 the following basic principles:
(1) The City is not a single entity. It is the total of many entities, each with its separate function
and legal restrictions on the use of City resources. In the private sector, a corporation may
have many "subsidiaries" which comprise 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 recognized when they are both measurable and available to liquidate liabilities of the
current period; and b) expenditures are recognized when an event or transaction is
expected to draw upon current spendable resources (rather than future resources).
(3) The proprietary fund types (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.
35
(5) As a recipient of federal, state and county financial assistance, the City is also responsible
for ensuring that an adequate framework of internal controls is in place to ensure
compliance with applicable laws and regulations related to those programs. The
framework of internal controls is subject to periodic evaluation by management.
As part of the City's single audit, tests are made to determine the adequacy of the
framework of internal controls. This includes the portion relating to Federal assistance
programs, as well as determining that the government has complied with applicable laws
and regulations. The results of the City's single audit for the fiscal year ended June 30,
1999, provided no material weaknesses in the framework of internal controls or significant
violations of applicable laws and regulations.
(6) Budgetary control is maintained through monthly reports on all revenue and expenditure
accounts as well as monthly 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 City Manager annually prepare a budget for the City
Council with a message describing important features, and be responsible for its
administration after adoption.
Acknowledgments
This report has been a joint effort by many people from many different areas of responsibility.
The dedicated efforts of Kevin Branca, Assistant Finance Director, and all of the accounting
staff, deserve full credit for the preparation and contents of this report. We appreciate Jennifer
Taylor 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,
V ' // s'/K:-T v. xl/ (^ ,. >
LISA HILDABRAND
Finance Director
36
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Carlsbad,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1998
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
(I President
Executive Director
37
^ California Society of ^
^Municipal Jinance Officers
Certificate of Award
Outstanding Financial Reporting 1997-98
Presented to the
City of Carlsbad
,,'i, A '' This certificate is issued in recognition of meeting professional standards and criteria in reporting
< ' which reflect a high level of quality in the annual financial statements
' • [- and in the underlying accounting system from which the reports were prepared.
March 1,1999
Cta&i, Prohnioiliri Teebgicil Sundirdj Commiltn
Dedicated to Excellence in Municipal Financial Management f^^
38
SOLANA BEACH
DEL MAR 1 1-5
39
CITY OF CARLSBAD
ELECTED CITY OFFICIALS
Claude A. Lewis, Mayor
Matt Hall, Mayor Pro Tern
Ramona Finnila, Council Member
Ann J. Kulchin, Council Member
Julianne Nygaard, Council Member
Aletha L. Rautenkranz, City Clerk/Information Systems Director
James M. Stanton, City Treasurer
ADMINISTRATION AND DEPARTMENT HEADS
Raymond R. Patchett, City Manager
Frank Mannen, Assistant City Manager
James F. Elliott, Administrative Services Director
Lloyd Hubbs, Public Works Director
Martin Orenyak, Community Development Director
Robert Vales, Police Chief
Dennis Van Der Maaten, Fire Chief
Ron Ball, City Attorney
Ann Cheverton, Human Resources Director
Ruth Fletcher, Purchasing Officer
Debbie Fountain, Housing & Redevelopment Director
Robert J. Greaney, Water Department General Manager
Lisa Hildabrand, Finance Director
Michael Holzmiller, Planning Director
Pat Kelley, Principal Building Inspector
Clifford Lange, Library Director
Erin Letsch, Risk Manager
Ken Price, Recreation Director
CHAIRPERSONS, COMMISSIONS AND BOARDS
Arthur Wood Arts Commission
Bruce Macklin Beach Erosion Committee
Robert Turner Community Television Foundation
Bill Compas Design Review Board
Gordon Bizieff Historic Preservation Commission
Roy Latas Housing Commission
Claude A. Lewis Housing and Redevelopment Commission
Karen Gleason Huss Library Board of Trustees
Julie Baker Parks and Recreation Commission
James Page Personnel Board
Courtney Heineman Planning Commission
James Whittaker Senior Commission
Ann L'Heureux Serra Cooperative Library System Advisory Board
Bill Dominguez Sister City Committee
Thomas Blake Traffic Safety Commission
Vacant Underground Utility Advisory Committee
40
CITY OF CARLSBAD ORGANIZATION CHAR!
Sister City
Committee
Design i
Review '
Board '
Personnel
Board ELECTORATE Historic
Preservation
Commission
Housing
Commission
Beach
Erosion
Committee
I Library Board
i of
TrusteesMAYOR
&
COUNCIL
CITY
TREASURERCITY CLERKCommunity i i Housing &
Television ' 1 Redevelopment i
Commission 'Serra Cooperative
Library System
_Advboj:y_3o.arjd_
Traffic
Safety
Commission
Planning
Commission |
CITY MANAGER CITY ATTORNEYUnderground I
Utility Advisory
ADMINISTRATIVE
SERVICES
COMMUNITY
DEVELOPMENT
PUBLIC
SAFETY
COMMUNITY
SERVICES
GENERAL
SERVICES
ENGINEERING
SERVICES
MAINTENANCE &
OPERATIONS
ECONOMIC
DEVELOPMENT
GEOGRAPHIC
INFO SYSTEMS RECREATION
HOUSING AND
REDEVELOPMENT
Elected
Council Appointed I"-"1
Staff Support
Reporting Relationship
Programs I I
RISK
MANAGEMENT
112299
BOARDS, COMMISSIONS, AND COMMITTEES
CITY
COUNCIL
Arts
Commission
Beach Erosion
Committee
Community
Television
Foundation
Design
Review
Board
Historic
Preservation
Commission
Housing
Commission
Housing and
Redevelopment
Commission
Library
Board of
Trustees
Parks and
Recreation
Commission
Personnel
Board
Planning
Commission
Senior
Commission
Serra Cooperative
Library System
Advisory Board
Sister
City
Committee
Traffic
Safety
Commission
Underground
Utility Advisory
Committee
081099
o
o>o
CONRAD AND CERTIFIED PUBLIC ACCOUNTANTS
ASSOCIATES, L.L.R 1100 MAIN STREET, SUITE C
IRVINE, CALIFORNIA 92614
(949) 474-2020
Fax (949) 263-5520
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, 1999, 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 and
Government Auditing Standards, issued by the Comptroller General of the United States. 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, 1999,
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.
The supplementary information regarding the year 2000 issue identified in the accompanying
table of contents as required supplementary information is not a required part of the basic
financial statements, but is supplementary information required by the Governmental Accounting
Standards Board. We did not audit and do not express an opinion on such information. Further,
we were unable to apply to this information the procedures prescribed by professional standards
because of the difficulty in ascertaining whether the information presented includes a sufficiently
complete description of the year 2000 issue as it relates to the reporting government. In addition,
we do not provide assurance that the City of Carlsbad is or will become year 2000 compliant,
that the City of Carlsbad's year 2000 remediation efforts will be successful in whole or in part, or
that parties with which the City of Carlsbad does business are or will become year 2000
compliant.
43
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
The Honorable Members of City Council
City of Carlsbad, California
Page Two
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.
In accordance with Government Auditing Standards, we have also issued our report dated
September 28, 1999 on our consideration of the City of Carlsbad's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts
and grants.
September 28, 1999
44
45
CITY OF CARLSBAD
Combined Balance Sheet - All Fund Types and Account Groups
June 30. 1999
Assets and Other Debits
Assets:
Cash and investments (note 3)
Receivables:
Loans
Taxes
Accounts, net
Other
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
Fixed assets, 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, Equity and Other Credits
Liabilities:
Accrued liabilities
Accrued interest payable
Due to other funds (note 4)
Advances from other funds (notes 5 and 10)
Due to other governments
Estimated claims payable (note 20)
Due to bondholders
Current portion of long-term debt (note 10)
Deposits payable
Current liabilities payable from
restricted assets - accrued interest
Deferred revenue
Long-term debt payable (notes 8, 9 and 10)
Total liabilities
Equity and Other Credits:
Investment in general fixed assets
Contributed capital (note 18)
Fund balances:
Reserved (note 16)
Unreserved (note 16)
Retained earnings:
Reserved (note 16)
Unreserved (nole 16)
Total equity and other credits
Total liabilities, equity and other credits
$ 43.456.368
$ 4.983,961
8,261
7.037.016
12.029.238
12.892,880
39,220.617
52.113.497
$ 64.142.735
Governmental Fund Types
General
Special
Revenue
Debt
Service
Capital
Projects
23,835,913
2
17.
175.069
.925.741
38.609
91.173
-
166.170
9.166
.243,360
24,326
12.753
5.467.884
1 9,468
16.625
-
84
-
172.198
2.000.000
-
206.313
$ 64,142,735 31,718,485
377,813
109,482
1,362
47.614
536.271
12.543.428
18.638.786
.182.214
31.718.485
1.768.195
35.659
15.912
1,819,766
1.528.500
291.266
1.819.766
1.819.766
See accompanying notes to general purpose financial statements.
46
127.796.869
2.374
583.091
97.880
79.407
207.466
128,767,087
3,839,321
56.688
5.550,000
407.324
9.862.656
16.866.478
102.037.953
118.904.431
128.767.087
Proprietary
Enterprise
87.099.821
_
52,746
3.369,395
-
-
161.665
58.214
-
238.414
-
1,715,645
35,166
122.257,295
-
.
214,988,361
3,421,880
-
161,665
2,737,200
922.153
32,000
-
1,694,339
1,856,080
298,529
1.963.246
15.899,761
28,986,853
122,550,997
-
-
1.682.671
61,767.840
186.001.508
Fund Types
Internal
Service
12.130.377
_
-
34.223
-
-
-
-
-
100,495
-
_
5,093,296
-
.
17,358,391
653.111
-
-
-
-
1,313,333
-
-
_
-
-
1,966,444
7,577,556
-
-
_
7.814.391
15.391.947
Fiduciary
Fund Type Account Groups
General General
Fixed Long-Term Totals
Agencv Assets Debt (Memorandum Onlv)
17.872.219 - - 313.959.762
5.642.953
7.597 - - 3.043.585
10.608 - - 4.052.551
91,173
44.014 - - 157.890
327.835
318.985
19.243.360
363.235
426.532
1.715.645
35.166
91,645,053 - 218,995.644
1.819.766 1.819,766
31,054,291 31.054,291
17,934,438 91.645,053 32.874,057 601.248,373
13.276.086
1.485.721 - - 1,485,721
327,835
10,956,160 19,243.360
923,515
1 345 333
9,915.655 - - 9.915.655
1.694.339
6.533.062 - - 8.454.340
298.529
9.407.586
21.917.897 37.817.658
17.934.438 - 32.874.057 104.189.957
91.645.053 - 91.645.053
130.128.553
43.831.286
160.188.622
1.682.671
69.582.231
91.645.053 - 497.058.416
214.988,361 17.358.391 17.934.438 91.645.053 U. 874.057 601.248.373
47
48
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 1999
Revenues:
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Income from property and investments
Interdepartmental charges
Contributions from property owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Proceeds of advances
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 (note 19)
Residual equity transfers out (note 19)
Fund balances at end of year
General
$ 43,108,499
3,880,911
3,826,686
6,586,438
804,258
1,992,453
1.933,820
-
-
1,190,009
63,323,074
5,559,797
21,613,003
5,001,754
6,847,451
10,563,156
-
-
-
49,585,161
13,737,913
7,500
(1,825,000)
-
(1,817,500)
11,920.413
41,844,169
39.415
(1.690,500)
S 52,113,497
Special Debt
Revenue Service
1,679,306 1,246,185
4,068,514
-
65,096
131,697
986.125 88,382
-
7,397,405
349,791
346.799
15,024,733 1,334,567
15,262
314,748
3,634,880
693,927
2,126,527
-
824,921
1,644,726
6,770,082 2,484,909
8,254,651 (1,150,342)
782,406 800,000
(22,906) (380,000)
588,763
759,500 1,008,763
9,014,151 (141,579)
22.168,063 1.961,345
-
-
31.182,214 1,819,766
Capital
Projects
11,473,812
9,852,189
-
153,613
-
5,858,605
-
38,365,899
-
7,499
65,711,617
1,209,466
-
-
-
-
52,106,587
_
-
53,316,053
12,395,564
1,013,513
(375.513)
-
638.000
13,033,564
105,910,282
-
(39,415)
1 18,904,431
Totals
(Memorandum
Only)
57,507,802
17,801,614
3,826,686
6,805,147
935,955
8,925,565
1,933,820
45,763,304
349,791
1,544,307
145,393,991
6,784,525
21,927,751
8,636,634
7,541,378
12,689,683
52,106,587
824,921
1,644,726
112,156,205
33,237,786
2,603,419
(2,603,419)
588.763
588,763
33,826,549
171,883,859
39,415
(1,729,915)
204,019,908
See accompanying notes to general purpose financial statements.
49
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Governmental Fund Types
Revenues:
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Income from property and investments
Interdepartmental charges
Contributions from property owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Community development
Community services
Public works
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Proceeds of advances
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
Year Ended June 30,
General Fund
Bud»et
$41.874,000
3,600,000
3,430,000
6,755,000
800,000
2.250,000
1.650,000
-
-
1,500,000
61,859,000
9,719,499
22,937,200
5,805,770
7,305,116
12,530,627
58,298,212
3,560,788
(1,835,500)
(1,835,500)
1,725,288
41,844.169
-
(1,680,000)
$41.889.457
Actual on
Budgetary
Basis
43,108,499
3,880,911
3,826,686
6,586,438
804,258
1,992,453
1.933,820
-
-
1,190,009
63,323,074
7,376,303
21,758,443
5,446,651
7,117,540
11,668,681
53,367,618
9,955,456
7,500
(1,835,500)
(1,828,000)
8,127,456
41.844,169
39,415
(1,680,000)
48.331.040
1 999
Variance-
Over
(Under)
1,234,499
280,911
396,686
(168.562)
4,258
(257,547)
283,820
-
-
(309,991)
1,464,074
(2,343,196)
(1,178,757)
(359,119)
(187,576)
(861,946)
(4,930,594)
6,394,668
7,500
-
7,500
6,402,168
-
39,415
-
6.441.583
Special Revenue Funds
Budget
1,602,500
3,943.229
-
65,000
124,000
896,744
123,500
4,659,500
470,858
112,900
11,998,231
816,298
4,541,184
1,032,711
4,206,014
10,596,207
1,402,024
;
1,402,024
22.168.063
_
-
23.570.087
Actual on
Budgetary
Basis
1,679,306
4,068,514
-
65,096
131,697
986,125
-
7,397,405
349.791
346.799
15,024,733
797,809
4,031,786
910,585
4,061,292
9,801,472
5,223,261
782,406
(22,906)
759.500
5,982,761
22,168,063
_
-
28,150.824
Variance-
Over
(Under)
76.806
125.285
-
96
7,697
89,381
(123,500)
2,737.905
(121,067)
233,899
3,026.502
(18,489)
(509,398)
(122,126)
(144,722)
(794,735)
3,821,237
782.406
(22,906)
759,500
4,580,737
-
.
-
4,580,737
See accompanying notes to general purpose financial statements.^
Debt Service Funds
Actual on
Budgetary
Budget Basis
1,200,000 1,246,185
75,000 43.332
1,275,000 1,289,517
26,000 15,262
302,000 304,921
1,380,763 1,367,168
1,708,763 1,687,351
(433,763) (397,834)
(380,000)
588,763
208.763
(433.763) (189.071)
1.146,832 1.146.832
Variance-
Over
(Under)
46,185
(31,668)
14.517
(10,738)
2,921
(13,595)
(21,412)
35,929
(380,000)
588,763
208,763
244,692
Totals
(Memorandum Only)
713,069 957.761 244,692
Budset
44,676,500
7,543.229
3,430,000
6.820,000
924,000
3,221,744
1,773,500
4,659,500
470,858
1,612.900
75,132,231
9,745,499
23,753,498
10,346,954
8,337,827
16,736,641
302,000
1,380,763
70,603,182
4,529,049
(1.835,500)
-
(1.835,500)
2,693,549
65.159,064
-
(1,680.000)
66.172.613
Actual on
Budgetary
Basis
46,033,990
7,949,425
3,826,686
6,651,534
935,955
3,021,910
1,933,820
7,397,405
349,791
1,536,808
79,637.324
7,391,565
22,556,252
9,478,437
8,028,125
15,729,973
304,921
1.367,168
64,856,441
14,780,883
789,906
(2,238.406)
588,763
(859,737)
13,921,146
65,159.064
39,415
(1.680,000)
77,439,625
Variance-
Over
(Under)
1,357,490
406,196
396,686
(168,466)
1 1,955
(199,834)
160.320
2,737,905
(121,067)
(76,092)
4,505,093
(2,353,934)
(1,197,246)
(868,517)
(309.702)
(1,006,668)
2.921
(13,595)
(5,746,741)
10,251,834
789,906
(402,906)
588,763
975,763
1 1,227,597
-
39,415
-
11,267,012
51
CITY OF CARLSBAD
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings - All Proprietary Fund Types
Year Ended June 30. 1999
Operating revenues:
Water sales
Sewer services charges
Other charges for services
Contributions from other
government agencies
Miscellaneous
Total operating revenues
Operating expenses:
Plant operations
Purchased water
Depreciation
Fuel and supplies
Claims expense
General and administrative
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Income from property and investments
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 at end of vear
Enterprise
$ 15,922,080
5,470,421
1,247,449
396,914
1,105,439
24,142,303
1,520,000
9,624,615
2,624,032
-
-
7,779,977
21,548,624
2,593,679
3,694,116
(1,025,973)
(184)
984,868
814
(16,070)
3,637,571
6,231,250
57,219,261
$63.450.51 1
Internal
Service
-
7,690,030
_
651.024
8,341,054
-
1,164,869
450,664
3,834,075
2,564,986
8,014,594
326,460
525,759
-
119,201
-
-
-
644,960
971,420
6,842,971
7.814,391
Totals
(Memorandum Only)
15,922,080
5,470,421
8,937,479
396,914
1,756.463
32,483.357
1,520,000
9,624,615
3,788,901
450,664
3,834,075
10,344,963
29,563,218
2,920,139
4,219,875
(1,025,973)
119,017
984.868
814
(16,070)
4,282,531
7,202,670
64,062,232
71,264,902
See accompanying notes to financial statements.
52
CITY OF CARLSBAD
Combined Statement of Cash Flows - All Proprietary Fund Types
Year Ended June 30.1999
Enterprise
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
(Increase) decrease in due from other governments
(Increase) decrease in inventory
(Increase) decrease in prepaid expenses
Increase (decrease) in accrued liabilities
Increase (decrease) in due to other governments
Increase (decrease) in deposits payable
Increase (decrease) in estimated claims payable
Increase (decrease) in deferred revenue
Increase (decrease) in loans payable
Net cash provided by (used for) operating activities
Cash flows from noncapital financing activities:
Cash received from other funds
Cash paid to other funds
Net cash provided by (used for) noncapital
financing activities
Cash flows from capital and related financing activities:
Purchases of fixed assets
Principal payment on bonds
Interest and other fees paid
Property taxes received
Capital contributions received
Net cash provided by (used for) capital
and related financing activities
Cash flows from investing activities:
Interest on investments
Net cash provided by (used for) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Internal Sen-ice
Totals
(Memorandum Only)
$ 2,593,679
2,624,032
(72,274)
36.296
(3.239)
-
713,435
918,519
359,202
-
(107,532)
(101,570)
6,960,548
1,705,692
(25,692)
1,680,000
(5,805,172)
(2,113,033)
(861,571)
984,868
10,443,812
2,648,904
3,694,274
3,694,274
14.983.726
72.138,034
326,460
1.164,869
(27,772)
-
(15,661)
199,675
391,169
-
-
55,143
-
-
2,093,883
-
(1,083,974)
-
-
-
-
(1,083,974)
525,759
525,759
1,535,668
10.594,709
2,920,139
3.788,901
(100,046)
36,296
(18,900)
199,675
1,104,604
918,519
359,202
55.143
(107,532)
(101,570)
9,054,431
1,705,692
(25,692)
1,680,000
(6,889,146)
(2,113,033)
(861,571)
984,868
10,443,812
1,564,930
4.220.033
4.220.033
16.519.394
82.732.743
Cash and cash equivalents at end of year $ 87,121.760 12.130.377 99.252,137
53
CITY OF CARLSBAD
Combined Statement of C;ish Flows - All Proprietary Fund Types
(Continued)
Totals
Enterprise Internal Service (Memorandum Only)
Reconciliation of cash and cash equivalents to amounts
reported on the balance sheet:
Reported on the balance sheet:
Cash and investments $ 87.099.821 12,130,377 99.230,198
Restricted assets - cash and investments 1.715,645 - 1,715,645
Less investments not meeting the definition of cash
equivalents:
Investment contracts (1,693,706) - (1,693,706)
Cash and cash equivalents at end of year $ 87,121,760 12,130,377 99.252,137
Supplemental schedule of noncash investing,
capital and financing activities:
Capital assets contributed by (to) other funds $ 1,232,729 171,195 1,403,924
See accompanying notes to general purpose financial statements.
54
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
Year Ended June 30, 1999
(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, community
services and public works.
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 (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 City of Carlsbad Public Improvement
Corporation, the Carlsbad Redevelopment Agency and the Carlsbad Municipal
Water District (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. The required reportable portion of the
Public Improvement Corporation is presented in the Hosp Grove debt service
fund. Only 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 from the Finance department.
55
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.
56
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
PROPRIETARY FUND TYPES:
The City applies all applicable GASB pronouncements in accounting and
reporting for its proprietary operations as well as the following pronouncements
issued on or before November 30, 1989, unless these pronouncements conflict
with or contradict GASB pronouncements: Financial Accounting Standards
Board (FASB) Statements and Interpretations, Accounting Principles Board
(APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee
on Accounting Procedure. Proprietary funds include the following fund types:
Enterprise Funds
Enterprise funds are used to account for operations (a) that are financed primarily
through user charges, or (b) where the governing body has decided that
determination of net income is appropriate.
Internal Service Funds
Internal service funds are used to account for goods or services provided by one
department to other departments of the City on a cost-reimbursement basis.
FIDUCIARY FUND TYPE:
Fiduciary funds are used to account for assets held by the City in a trustee
capacity or as an agent for individuals, private organizations, other governmental
units, and/or other funds. The following is the City's fiduciary fund type:
Agency Fund
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:
57
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
General Fixed Assets Account Group
This account group is used to account for all fixed assets of the City other than
those accounted for in the proprietary funds.
General Long-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.
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, transient
occupancy taxes, franchise taxes, highway users tax, interest, and some state and
federal grants.
58
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
Real property taxes are levied on October 15 against owners of record at January
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 January 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, purchase order requests,
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.
(e) Cash and Investments
Cash includes amounts in demand and time deposits. Investments are reported in
the accompanying balance sheet at fair value, except for certain certificates of
deposit and investment contracts that are reported at cost because they are not
transferable and they have terms that are not affected by changes in market
interest rates.
Changes in fair value that occur during a fiscal year are recognized as income
from property and investments reported for that fiscal year. Income from property
and investments includes interest earnings; changes in fair value; any gains or
losses realized upon the liquidation, maturity, or sale of investments; property
rentals and the sale of City owned property.
59
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
investments is allocated to the various funds based on each fund's average cash
and investments balance.
Restricted cash and investments represent amounts that are restricted under the
terms of debt agreements, including debt service reserves and balances associated
with special assessments for the construction of enterprise fund assets.
(f) Inventories
Inventories consist of materials and supplies that are valued at cost and are
recorded as expenses or expenditures 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, 1999, 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.
60
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(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.
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) Fixed Assets - Proprietary Funds
Fixed assets used by proprietary funds are 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 50
Equipment 3 - 20
61
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
(1) Deferred Revenue and Charges
The deferred revenue and charges in the General fund represent funds received for
future programs, interest accrued, but not available, on advances to the Carlsbad
Redevelopment Agency and deferred lease charges on the City's 800 Mhz
communications equipment.
The deferred revenue and charges in the capital projects funds relate to funds
received and to be applied toward future construction and traffic signals, a long
term receivable for development fee revenue earned but not available and a
prepaid lease payment.
The deferred revenue and charges in the enterprise funds relate to in-kind
prepayments for sewer installation services to be rendered and deferred charges
generated from the refunding of the water COPs and Encina bonds.
(m) 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.
(n) 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. Residual equity transfers into the proprietary funds are recorded as
additions to contributed capital.
(o) 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.
62
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(2) Budgetary Data
The City follows these procedures in establishing its budgetary data:
1. During May or June, the City Manager submits to the City Council a proposed
operating budget for the fiscal year commencing the following July 1. The budget
includes proposed expenditures and estimated revenues on a departmental basis.
2. Public hearings are conducted at City Council meetings to obtain citizens'
comments during June.
3. Prior to July 1, the budget is enacted legally through passage of an appropriation
resolution.
The City Manager is authorized to make transfers of appropriated amounts from one
department to another within a fund. The legal level of budgetary control is at the fund
level. 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 fund level. All
appropriations lapse at fiscal year-end unless City Council takes 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 and to exclude any earned leave
accruals at year-end. Annual budgets are adopted for the General, special revenue and
debt service funds except for the Hosp Grove COPs. Accordingly, the revenues and
expenditures for this fund 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.
63
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(2) Budgetary Data, (Continued)
The following schedule is a reconciliation of the budgetary and GAAP fund balances:
Fund balances-budgetary basis
Encumbrances outstanding at year-end
Fund balances designated for
continuing appropriations
Earned leave at year-end
Fund balances of nonbudgeted funds
Fund balances - GAAP basis
General
Fund
$48,331,040
1,557,633
2,354,610
(129,786)
Special
Revenue
Funds
28,150,824
467,693
2,566,866
(3,169)
Debt
Service
Funds
957,761
862.005
$52.113,497 31,182.214 1.819.766
£31 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. Government, its agencies and instrumentalities; commercial paper rated A-l
by Standard and Poor's Corporation or P-l by Moody's Commercial Paper record with a
maximum maturity of 180 days or 15% of the portfolio; banker's acceptances with a
maximum maturity of 270 days or 25% of the portfolio; repurchase agreements with a
maximum maturity of one week; 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 top two rating categories and not to
exceed 30% of the portfolio; money market funds whose portfolios consist of one or more
of the foregoing investments; a sweep account 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 at least 10 percent in excess of the City's
deposit or 50 percent in excess of the deposit as collateral in mortgage pools.
64
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(3) Cash and Investments, (Continued)
Cash and investments are classified in the accompanying combined balance sheet as
follows:
Cash and investments $313,959,762
Restricted assets:
Cash and investments 1,715,645
$315.675.407
Cash and investments held by the City at June 30, 1999 consisted of the following:
Cash on hand (petty cash) $ 7,452
Deposits 4,221,152
Investments 311.446.803
Total cash and investments $315.675,407
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, 1999.
Category Bank Carrying
Form of Deposit I 2 3_ Balance Amount
Demand deposits $200,000 4,099,489 - 4,299,489 2,821,652
Bank investment contracts - 1.399.500 - 1.399.500 1.399.500
$200.000 5.498.989 - 5.698.989 4.221,152
65
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(3) Cash and Investments. (Continued)
Investments:
As defined in Governmental Accounting Standards Board Statement No. 3, investments
in securities are categorized in the following manner:
Category 1 - Investments that are insured or registered, which are held by the City or
its agent in the City's name.
Category 2 - Uninsured and unregistered investments, for which the securities are held
by the counterparty's trust department or agent in the City's name.
Category 3 - Uninsured and unregistered investments, for which the securities are held
by the counterparty or by its trust department or agent, but not in the City's name.
Category
Form of Investment I 23 Carrying Amount
United States Treasury notes $ 9,189,979 - - 9,189,979
United States Government
agency obligations 176,613,531 - - 176,613,531
Corporate notes 88.471.427 - - 88.471.427
$274.274.937 - - 274,274,937
Investments not subject to categorization:
Investment in Local Agency Investment Fund (a) 32,036,177
Investment in mutual funds 3,836,383
Investment contracts (b) 1,299,306
$311.446.803
(a) The City is a voluntary participant in the Local Agency Investment Fund (LAIF)
that is regulated by California Government Code Section 16429 under the
oversight of the Treasurer of the State of California. The fair value of the City's
investment in this pool is reported in the accompanying financial statements at
amounts based upon the City's pro-rata share of the fair value provided by LAIF
for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis. Included in
LAIF's investment portfolio are collateralized mortgage obligations, mortgage-
backed securities, other asset-backed securities, loans to certain state funds, and
floating rate securities issued by federal agencies, government-sponsored
enterprises, and corporations.
66
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(3) Cash and Investments, (Continued)
(b) This is contract value. No secondary market exists for resale in order to establish
market value.
The carrying amount of all investments reflected in the above table is at fair value, except
for nonparticipating investment contracts which are carried at cost because they are not
transferable and they have terms that are not affected by changes in market interest rates.
(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, 1999:
Due From Due To
Other Funds Other Funds
General $ - 166,170
Special Revenue Funds:
Community Development Block Grant 13,220
Federal Grants 62,500
Senior Nutrition 26,920
State Grants 6,842
Capital Projects Funds:
Federal Grants 56,688
Enterprise Funds:
Sewer - 161,665
Carlsbad Municipal Water District 161.665 -
Totals $327.835 327.835
67
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(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, 1999:
Advances From Advances To Amount
General Fund Capital Projects Fund:
Park Development Fund $ 2,550,000
General Fund Enterprise Fund:
Golf Course Fund 2,737,200
General Fund Account Group:
Long-Term Debt Account Group 10,956,160
General Fund Capital Projects Fund:
LFMP Zone Transportation Fund 1,000,000
Special Revenue Fund: Capital Projects Fund:
Gas Tax Fund BTD #3 Fund 2,000.000
Total advances $19,243.360
(6) General Fixed Assets
A summary of changes in the general fixed assets account group is as follows:
Balance at Balance at
July 1. 1998 Additions Deletions June 30. 1999
Land $28,042.044 4,832.861 - 32.874,905
Buildings 27,683.709 - - 27,683,709
Improvements 4,091,655 301,158 - 4,392,813
Furniture and equipment 5,457,945 2,806,736 (1,949,110) 6,315,571
Construction in progress 8.681.358 16.497.814 (4.801.117) 20.378.055
Total $73,956.711 24.438.569 (6.750.227) 91.645.053
68
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(6) General Fixed Assets. (Continued)
Construction in progress in the general fixed assets account group is composed of the
following:
ADA Projects
Library - South Carlsbad
Library Remodel - Cole Library
Poinsettia Park
Public Art - Maxton Brown Park
Public Art - South Carlsbad Library
Public Service Center
Skateboard Park
Faraday Building
Leo Carrillo Park (Phase I)
Library - South Carlsbad Library Shelving
Northwest Quadrant Parks
Safety Center Building Improvements
Safety Center Conference Center
Improvements
Totals
Project
Authorization
$ 450,000
18,418,841
632,862
5,471,434
25,000
170,000
4,168,000
515,066
2,101,900
950,000
650,000
50,000
50,000
165.000
Expended
Balance at
June 30. 1999
273,634
13,214,465
215,636
5,055,487
5,123
147,957
81,793
473,602
136,360
266,874
480,318
17,405
7,401
2.000
Committed
176,366
5,204,376
417,226
415,947
19,877
22,043
4,086,207
41,464
1,965,540
683,126
169,682
32,595
42,599
163.000
$33.818.103 20.378.055 13.440.048
69
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(7) Fixed Assets - Proprietary Funds
A summary of proprietary fund type fixed assets at June 30, 1999 is as follows:
Enterprise Internal Service
Land, water rights, rights-of-way
Buildings and improvements
Wells, reservoirs and dams
Transmission and distribution lines
Sewer, sewer lines and wells
Sewage treatment facility
Equipment and vehicles
Construction in progress
Less accumulated depreciation
Fixed assets, net
$ 7,358,347
7.246.703
27.701,646
42.046,145
30,488,253
33,580,434
1,760,394
5.866.508
156.048,430
33.791.135
$122.257.295
10,827,284
10,827,284
5.733.988
5.093.296
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 the year ended June 30, 1999.
The Enterprise funds had various construction contracts in progress at June 30, 1999 with
an estimated cost to complete of approximately $29,225,000.
(8) Obligations Under Capital Leases
On March 7, 1995, the City entered into a Memorandum of Agreement with the County
of San Diego to participate in the development and operation of a Regional
Communications System (RCS) benefiting the radio communication needs of public
safety and public service agencies operating in San Diego and Imperial County (backbone
lease). The system is designed to replace existing conventional radio frequencies with a
trunked 800 Mhz system to develop communications capabilities to cope with potential
disaster and improve enter and intra-agency communications in the future. The total
estimated cost for Carlsbad's participation in this system is $5,400,000 and can be
divided into two main components: the backbone and the equipment. The cost for
Carlsbad's share of the backbone of the RCS was $1.586,650. The balance of the
backbone lease was paid off in fiscal year 1998-99. The equipment purchases for use by
Carlsbad's safety and service departments are covered under the lease purchase
agreements with Motorola as further discussed below.
70
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(8) Obligations Under Capital Leases, (Continued)
On November 15, 1996, the City entered into an Equipment Lease-Purchase Agreement
with Motorola, Inc. for the purchase of equipment and services necessary for the City's
participation in the San Diego County RCS.
The maximum amount of credit extended to the City under the terms of the agreement is
$3,235,478, with an option to increase the total by 10%. As of June 30, 1999, the City-
has purchased equipment and services under the agreement totaling $1,855,714. The
payment terms are for 15 years at an interest rate of 6.91% per year. A portion of the
equipment lease was paid off in 1998-99, leaving an unpaid principal amount as of June
30, 1999 of $632,947.
Minimum future lease payments under the capital lease as of June 30, 1999 are:
Equipment Lease
2000 $ 79,265
2001 79,265
2002 79,265
2003 79,265
2004 79,265
Subsequent to 2004 554.857
Total minimum future lease payments 951,182
Less amounts representing stated or implicit interest (318,235)
Present value of future lease payments $632,947
71
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(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.
Minimum future rental payments under the operating lease as of June 30, 1999 are:
2000 $ 62,250
2001 65,985
2002 69,944
2003 74,140
2004 78,589
Subsequent to 2004 364.425
Total minimum future rental payments $715,333
In October, 1998, the City entered into an agreement to lease a 68,000 square foot office
building. The building is currently under construction and will be used to house the
community development, administrative and some public works staff when completed.
The lease requires monthly rental payments of $74,816 for ten years commencing
fourteen days after the certificate of occupancy has been issued. It is expected that this
will occur in the fall of 1999. The term of the lease can be extended, at the City's option,
for two additional five-year periods at a lease rate to be agreed upon by the parties. The
lease also provides for an option to purchase the building between the twelfth and twenty-
fourth month of the lease at a price of $9,100,000.
Minimum future rental payments under the operating lease as of June 30, 1999 are:
2000 $ 523,715
2001 897,798
2002 897,798
2003 897,798
2004 897,798
Subsequent to 2004 4,863.073
Total minimum future rental payments $8.977.980
72
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt
The following is a summary of changes in the principal balance
year ended June 30, 1999:
of long-term debt for the
General long-term debt account group:
Bonds
Certificates of participation
HUD Section 108 Loan
Advances to the Carlsbad
Redevelopment Agency
Obligations under capital leases
Total general long-term debt
Enterprise funds:
Certificates of participation
Installment purchase agreement
Loan payable
Accrued assessments
Total enterprise funds
Principal
Balance at
July 1, 1998
>:
$14,740,000
6,595,000
874,950
10,392,318
2,399,110
$35,001,378
$ 6,360,000
10,675,000
1,998,520
1,985,204
$21,018,724
Principal
Balance at
Additions Reductions June 3 0,1999
280,000
520,000
125,000
588,763 24,921
1,766,163
588.763 2,716.084
955,000
425,000
101,570
733,032
2,214,602
14,460,000
6,075,000
749,950
10,956,160
632,947
32,874,057
5,405,000
10,250,000
1,896,950
1,252,172
18,804,122
Long-term debt at June 30, 1999 is comprised of the following issues:
Balance at
June 30. 1999General Long-Term Debt
1993 Carlsbad Housing and Redevelopment Commission Tax Allocation
Bonds, principal due in amounts ranging from $290,000 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. $14,460,000
1997 Hosp Grove Refunding Certificates of Participation, principal due in
amounts ranging from $505,000 to $735,000 on August 1 of each year
through 2009, interest payable on August 1 and February 1 at rates varying
from 3.90% to 4.70% per annum. Payable from the General Fund, with a
required reserve amount of $659,500. 6,075,000
73
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt. (Continued)
Balance at
June 30. 1999
Community Development Block Grant (CDBG) program - Section 108
loan payable to HUD. Funds used to acquire property for affordable
housing project. Principal due in amounts ranging from $130,000 to
$170,000 on August 1 of each year through 2004. Interest payable on
August 1 and February 1 at rates varying from 8.12% to 8.27% per annum.
Payable from future CDBG entitlements. 749,950
Redevelopment Agency debt due to the City of Carlsbad for capital
projects, administration, and accrued interest accumulated since the
formation of the Redevelopment Agency in fiscal year 1976-77. Interest is
charged and advanced to the Agency each year based on a current year
average interest rate. The debt will be paid from future tax increment
revenues. 10,956,160
Obligations under capital leases (note 8) 632,947
Total General Long-Term Debt $32,874.057
Enterprise Fund Long-Term Debt
1997 Carlsbad Municipal Water District Refunding Certificates of
Participation, principal due in varying amounts ranging from $995,000 to
$1,175,000 on May 1 of each year through 2004, interest payable on May
1 and November 1 each year at rates varying from 4.00% to 4.40% per
annum. The required reserve amount is $740,000. $ 5,405,000
Encina Financing Joint Powers Authority (EFJPA) Installment Purchase
Agreement, principal due in varying amounts ranging from $440,000 to
$905,000 on August 1 of each year through 2015, interest payable on
February 1 and August 1 each year at rates varying from 4.0% to 5.5% per
annum. The required reserve amount is $942,671. 10.250.000
1993 Carlsbad Municipal Water District loan agreement with the State
Water Resources Control Board. Principal is due in varying amounts
ranging from $104,515 to $123,219 on November 30 of each year through
2013, interest payable on November 30 of each year at 2.9% per annum. 1,896,950
74
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt, (Continued)
Balance at
June 30. 1999
In December of 1994, the Golf Course Enterprise Fund purchased land
with accrued assessments. Principal is due in varying amounts ranging
from $154,824 to $206,432 through 2006. 1.252.172
Subtotal enterprise funds 18,804,122
Less unamortized discounts, issuance costs and deferred charges (1,210,022)
Less current portion (1,694,339)
Total Enterprise Fund Long-Term Debt $15.899.761
Debt service requirements to maturity for general long-term debt (excluding
Redevelopment Agency advances for which minimum annual debt service payments have
not been established) are as follows:
2000
2001
2002
2003
2004
2005-2009
2010-2014
2015-2019
2020-2024
Tax
Allocation
Bonds
$ 1,043,390
1,042,771
1,046,234
1,043,777
1,045,403
5,215,425
5,201,606
5,179,694
5.143.341
Certificates
of
Participation
758,803
748,655
752,285
754,350
754,800
3,759,077
-
-
-
HUD
Section
108 Loan
186,261
185,278
183,408
180,651
176,980
-
-
-
-
Totals
1,988,454
1,976,704
1,981,927
1,978,778
1,977,183
8,974,502
5,201,606
5,179,694
5,143,341
Less amounts
representing
interest
25,961,641
(11.501.641)
Total general
long-term debt $14.460.000
7,527,970
(1.452.970)
6.075.000
912.578 34,402,189
(162.628) (13.117.239)
749.950 21.284.950
75
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt, (Continued)
Debt service requirements to maturity for the enterprise funds are as follows:
Carlsbad Municipal Encina Carlsbad
Water District Installment Municipal
Certificates of Purchase Water District
Participation Agreement Loan Payable
2000 $1,222,450 940,371 159,527
2001 1,227,650 942,026 159,527
2002 1,220,010 942,161 159,527
2003 1,219,860 936,199 159,527
2004 1,226,700 936,256 159,527
2005-2009 - 4,682,594 797,635
2010-2014 - 4,656,783 764,007
2015-2016 - 928,190
Golf Course
Accrued
Assessments
214,121
214,099
213,617
215,377
215,163
433,955
Totals
2,536,469
2,543,302
2,535,315
2,530,963
2,537,646
5,914,184
5,420,790
928,190
6,116,670 14,964,580 2,359,277
Less amounts
representing
interest (711.670)
Total enterprise
fund debt $5,405.000
(4.714.580)
10.250.000
(462.327)
1.896.950
1,506,332 24,946,859
(254,160) (6.142.737)
1.252.172 18.804,122
(11) Rate Covenants
The 1997 Water Revenue Certificates of Participation requires that the District set its
charges for services each year at rates sufficient to produce net revenues (after paying the
operating and maintenance expenses of the District, excluding depreciation) at least 1.15
times the debt service for that year.
The 1997 Encina Financing Joint Powers Authority Wastewater Revenue Bonds require
that District set its charges for services each year at rates sufficient to produce net
revenues (after paying the operating and maintenance expenses of the District, excluding
depreciation) of at least 1.25 times debt service for that year.
76
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(12) Prior Year Defeasance of Debt
In prior years, the City of Carlsbad and its component units advance refunded certain debt
issues. The proceeds of the refunding issues were irrevocably placed into a trust and used
to purchase noncallable government securities that have interest payment dates and
maturities that coincide with the cash flow requirements to fund the scheduled debt
service payments on the refunded bonds and to redeem the refunded bonds in their
entirety on the first available call date. As a result, both the assets held in this trust and
the liability for the refunded bonds have been excluded from the accompanying financial
statements. As of June 30, 1999, the outstanding balances of these defeased issues were
as follows:
Debt Issue Balance Outstanding
1989 Wastewater Revenue Bonds $28,430,000
(13) Special Assessment Bonds Without Government Commitment
As of June 30, 1999, the City has seven series of Assessment District Bonds outstanding
in the amount of $48,534,129. These bonds were issued under the provisions of the
Improvement Bond Acts of 1911 and 1915 and were used to finance public infrastructure
improvement projects.
For the bond issuances noted above, the City is not obligated in any manner for the
payment of debt service in the event of default by the property owners but is only acting
as agent for the property owners in collecting the assessments, forwarding the collections
to bondholders, and initiating foreclosure proceedings, if appropriate. Accordingly, no
liability for these bond issuances has been recorded in the General Long-Term Debt
Account Group and all debt service transactions have been recorded in an Agency fund.
(14) Mortgage Revenue Bonds
Multi-Family Housing Revenue Bonds are issued to provide construction and permanent
financing to developers of multi-family residential rental projects located in the City to be
partially occupied by persons of low or moderate income. The total mortgage revenue
bonds outstanding as of June 30, 1999 is $37,360,000. 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.
77
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(15) Industrial Development Bonds
The Industrial Development Authority (Authority) of the City has issued $3,172,500 in
Industrial Development Revenue Bonds. Any costs relating to the issuance of the Bonds,
as well as the principal and interest payments, are to be paid by the private party
benefiting from the Bond issue.
(16) Fund Balances/Retained Earnings
The following is a summary of reserved and unreserved fund balances and retained
earnings as of June 30, 1999:
Governmental Fund Types
Special Debt Capital
Fund Balances General Revenue Service Projects
Reserved for:
Loans receivable $ 175,069 5,467,884
Inventory 24,326
Prepaid expenditures 12,753 206,313 - 207,466
Debt service - - 1,528,500
Advances to other funds * 10,397,676 2,000,000
Low and moderate income housing - 4,401,538
Habitat mitigation 725,423
Encumbrances 1.557.633 467,693 16.659.012
Subtotal 12.892.880 12,543.428 1.528.500 16.866.478
Unreserved:
Designated for future debt service - - 291,266
Designated for approved capital projects - 105.192 - 62,312.155
Designated for continuing
appropriations 2,354.610 2,067,218 - 39.117,596
Designated for sales tax payment 61,927 -
Designated for affordable housing 502.949
Undesignated 36.301.131 16.466.376 - 608.202
Subtotal 39,220.617 18.638.786 291.266 102.037.953
Total fund balances $52.113.497 31.182.214 1.819.766 118.904.431
* Only reflects that portion of fund balance invested in interfund advances (net of
deterred revenue in the amount of $6.845,684 for measurable but unavailable interest
earned on such advances).
78
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(16) Fund Balances/Retained Earnings, (Continued)
Proprietary Fund Types
Internal
Retained Earnings Enterprise Service
Reserved for:
Debt service $ 1,682,671
Unreserved 61,767.840 7.814.391
Total retained earnings $63.450.511 7,814.391
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 habitat mitigation represent resources set aside as security for the
construction of wetland habitat to ensure the mitigation of certain species required as part
of the Cannon Road West project.
Reserves for encumbrances represent commitments related to unperformed contracts for
services and undelivered goods.
Unreserved-undesignated represents the fund balance or retained earnings remaining after
reduction for reserved and designated fund balances or retained earnings.
(17) Accumulated Fund Deficits
The following funds reported deficits in fund balances or retained earnings as of June 30,
1999:
Deficit Balance
Enterprise Funds:
Golf Course $(973,817)
Internal Service Funds:
Health Insurance (27,396)
79
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
18) Changes in Contributed Capital
Contributed capital at June 30. 1998
Additions:
Cash - connection fees
Cash - from other funds
Fixed assets
Reductions:
Fixed assets
Contributed capital at June 30, 1999
Enterprise
$109.173,913
10,169,619
1,680,000
1.695,036
(167.571)
$122.550,997
Internal
Service
7.406,361
10,500
160.695
7.577.556
(19) Residual Equity Transfers
Residual equity transfers are nonrecurring or nonroutine transfers of equity between
funds. A summary of significant residual equity transfers at June 30, 1999 is as follows:
Contributed capital to the enterprise
Golf Course fund for start-up costs
Equity from closed capital project fund
transferred to the General fund
General
$(1,680,000)
39,252
Capital Projects
(39,252)
(20) Claims and Judgments
The City is exposed to various risks of loss related to its operations, including losses
associated with errors and omissions and injuries to employees and members of the
public. The City uses a Risk Management Self-Insurance fund, a Health Insurance fund
and a Workers' Compensation fund (all internal service funds) to account for and finance
its uninsured risks of loss. All funds of the City make payments based on estimates of the
amounts needed to pay prior and current year claims and to establish a reserve for
catastrophe losses. The estimated claims payable reported at June 30, 1999 is based on
the requirements of Governmental Accounting Standards Board Statement No. 10, which
requires that a liability for claims be reported if information prior to the issuance of the
80
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(20) Claims and Judgments. (Continued)
Financial statements indicates that it is probable that a liability has been incurred at the
date of the Financial statements and the amount of the loss can be reasonably estimated.
Changes in the estimated claims payable amounts in Fiscal years 1998 and 1999 For the
three internal service Funds are as Follows:
Claims
Expense and
Beginning Changes in Claim Ending
Balance Estimates Payments Balance
Health Insurance Fund:
1997-98
1998-99
Risk Management Fund:
1997-98
1998-99
Workers' Compensation Fund:
1997-98
1998-99
$291,000
332,000
$258,819
228,890
$762,892
697,300
.353,534 (1.312,534) 332,000
,491,618 (1,481,262) 342,356
248.784
86,132
402,430
622,240
(278,713)
(177,790)
(468,022)
(485,795)
228,890
137,232
697,300
833,745
(21) Insurance Coverage
EFFective July 1, 1999, the City became a participating member oF the California
Municipal Excess Liability Program, a group purchase program For general liability
coverage. Under this program, the pool provides coverage up to a maximum of
$10,000,000 per occurrence with a selF-insured retention provided by the City in the
amount oF $500,000. At June 30, 1999, unencumbered Fund equity For the Risk
Management Self-Insurance fund was approximately $3,000.000. Over the past four
years, PARSAC, the City's previous liability pool, has contributed to the settlement of
one claim in excess of the City's self-insured retention in Fiscal year 1995-96.
Health insurance coverage For City employees is provided by either Kaiser. PERS, Sharp
Healthcare or the Reliastar plan. The majority of City employees are covered through the
Reliastar plan which is administered by Reliastar Life Insurance Company. Under the
City's agreement with Reliastar, Reliastar will provide coverage for each individual claim
over $75.000. If aggregate claims for the City for any two month period exceed 125% of
the actual claims. Reliastar will assume payment for the excess amount.
81
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(21) Insurance Coverage. (Continued)
The City is insured for workers' compensation claims by Employers Reinsurance
Corporation (Corporation). The Corporation provides coverage for losses which exceed
the City's self-insured retention of $300,000 per claim.
(22) 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 (EWA) is the operator and administrator of the facility and is responsible for
the management, maintenance and operations of the joint system. Ownership percentages
in the facility are determined by joint agreement at the time the assets are acquired. As of
June 30, 1998, the Cities and Districts have the following approximate ownership
interest:
City of Carlsbad 25%
City of Vista 24%
Leucadia County Water District 19%
Vallecitos Water District 19%
Buena Vista Sanitation District 8%
Encinitas Sanitary District 5%
The Encina Wastewater Authority (EWA) is the operator and administrator of the Facility
and is responsible for the management, maintenance and operations of the joint system.
The latest available financial statements of the EWA, dated June 30, 1998, show the
following:
Total assets $135,070,434
Total liabilities 3.678,127
Fund balance $131.392.307
The EWA does not recognize net income or loss. Net operating expenditures in excess of
users' assessments are treated as accounts receivable on the EWA'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 EWA totaled
$1,770,272 in fiscal year 1998. The financial statements of the EWA can be obtained at
6200 Avenida Encinas, Carlsbad, California 92009.
82
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(22) 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 (Carlsbad), the City of Vista (Vista), the Buena Vista
Sanitation District (Buena) and the Leucadia County Water District (Leucadia). The
primary purpose of the Authority is to issue revenue bonds in order to finance the
expansion of the Facility.
The Authority is governed by a Board of Directors, which consists of one director
appointed by each member. The financial statements of the Authority can be obtained at
the City of Carlsbad's City Hall.
In August 1989, the Authority issued $33,500,000 of revenue bonds and executed
installment purchase agreements for approximately the same amount. In February 1997,
bonds were issued by the Authority to refinance and defease the outstanding bonds. Two
of the members (Buena and Vista) defeased their 1989 obligations through available
funds; while Carlsbad and Leucadia refinanced their obligations. Repayment of the
bonds will be accomplished through payments made by Carlsbad and Leucadia pursuant
to the new installment purchase agreements. The individual agreements set forth the
purchase price and specify the debt service requirements for each member. The
following is a table of the outstanding balance owed as of June 30, 1999 by each member
and their approximate share in the additional capacity generated by the expansion.
Member
City of Carlsbad
Leucadia County Water District
City of Vista
Buena Vista Sanitation District
Installment
Agreement Balance
$10,250,000
6,995,000
$17.245.000
Approximate
Share
38%
24%
18%
20%
100%
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 1.25
times the annual installment payments due.
83
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(22) Joint Ventures. (Continued)
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 a fixed asset of the Sewer Enterprise
Fund.
(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.
(24) Retirement Plan
Plan Description
The City of Carlsbad contributes to the California Public Employees Retirement System
(PERS), an agent multiple-employer public employee defined benefit pension plan.
PERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries. PERS acts as a common investment
and administrative agent for participating public entities within the State of California.
Benefit provisions and all other requirements are established by state statutes and city
ordinance. Copies of PERS' annual financial report may be obtained from their executive
office: 400 P Street, Sacramento, California 95814.
Funding Policy
Participants are required to contribute 7% (9% for safety employees) of their annual
covered salary. The City makes the contributions required of City employees on their
behalf and for their account. The amount paid by the City on behalf of employees for the
year ended June 30, 1999 was $1,973,190. The City is required to contribute at an
actuarially determined rate. For the year ended June 30, 1999, the employer contribution
rate for the City of Carlsbad (as a percentage of covered payroll) was 9.318% for safety
employees and 8.185% for miscellaneous employees. The contribution requirements of
plan members and the City are established by PERS.
84
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(24) Retirement Plan, (Continued)
Annual Pension Cost
For 1999, the City's annual pension cost (employer contribution) of $774,465 for safety
and $1,510,047 for miscellaneous to PERS was equal to the City's required and actual
contributions. For 1999, the member contributions paid by the City were $851,610 for
safety and $1,121,580 for miscellaneous. The required contribution was determined as
part of the June 30, 1996, actuarial valuation using the entry age normal actuarial cost
method. The actuarial assumptions included (a) 8.5% investment rate of return (net of
administrative expenses), (b) projected annual salary increases that vary by duration of
service, and (c) 2% per year cost-of-living adjustments. Both (a) and (b) included an
inflation component of 4.5%. The actuarial value of PERS assets was determined using
techniques that smooth the effects of short-term volatility in the market value of
investments over a four-year period (smoothed market value). PERS unfunded actuarial
accrued liability is being amortized as a level percentage of projected payroll on a closed
basis. The remaining amortization period for miscellaneous employees at June 30, 1999
is through June 30, 2018, for safety employees at June 30, 1999, it is through June 30,
2018.
Three-Year Trend Information for PERS (Safety)
Annual Pension
Fiscal Year Cost (Employer Percentage of Net Pension
Ending Contribution) APC Contributed Obligation
6/30/97 $734,983 100% $0
6/30/98 827,859 100% 0
6/30/99 851,610 100% 0
Three-Year Trend Information for PERS (Miscellaneous)
Annual Pension
Fiscal Year Cost (Employer Percentage of Net Pension
Ending Contribution) APC Contributed Obligation
6/30/97 $1,079.342 100% $0
6/30/98 1,097,506 100% 0
6/30/99 1,121,580 100% 0
85
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(24) Retirement Plan. (Continued)
Required Supplementary Information
Funded Status of Plan (Safety)
Valuation Date
6/30/95
6/30/96
6/30/97
Entry Age
Normal
Accrued
Liability
$38,019,470
43,249,171
45,646,733
Actuarial
Value
of Assets
39,022,824
44,921,453
53,055,298
Funded Status of Plan (Miscellaneous)
Unfunded
Liability/
(Excess Assets)
(1,003,354)
(1,672,282)
(7,408,565)
Valuation Date
6/30/95
6/30/96
6/30/97
Entry Age
Normal
Accrued
Liability
Actuarial
Value
of Assets
Unfunded
Liability/
(Excess Assets)
$40,766,308
49,062,007
51,842,297
42,691,163
50,057,957
60,367,455
(1,924,855)
(995,950)
(8,525,158)
Funded Status
102.6%
103.9%
116.2%
Funded Status
102.0%
116.4%
Annual
Covered
Payroll
7,676,175
8,004,014
8,438,265
Annual
Covered
Payroll
15,124,966
14,139,219
14,995,218
UAAL
As a % of
Payroll
(13.071%)
(20.893%)
(87.797%)
UAAL
As a % of
Payroll
(12.726%)
(7.044%)
(56.853%)
(25) 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 $8,000 or 25% of a participant's "includable
compensation," as defined in the participation agreement. Distributions are made upon
the occurrence of the participant's termination, retirement, death or unforeseen
emergency, and in a manner in accordance with the election made by the 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. As of January 1, 1999,
the City has formally established a trust in accordance with Internal Revenue Code
Section 457(g) for all of its deferred compensation plans to provide protection from the
claims of the employer's general creditors. The deferred compensation assets placed in
the trust have been removed from the balance sheet.
86
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(26) Post-Retirement Health Care
In addition to the pension benefits described herein, per Resolution 614, all former
employees of the Carlsbad Municipal Water District (including dependents) are eligible
for post-retirement health care benefits if they 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, eleven retirees meet these eligibility requirements and are receiving
benefits.
The City pays for 100% of the premiums for health insurance which is 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
$30,900 were charged to expense for post-retirement health care costs during 1998-1999.
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.
87
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(27) 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, 1999 is as follows:
Operating revenues
Operating expenses:
Depreciation
Plant operations
Operating income (loss)
Nonoperating activities:
Property taxes
Other, net
Net income (loss)
Contributed capital:
Beginning balance
Current year additions
Current year deletions
Ending balance
Fixed assets:
Additions
Net working capital
Long-term liabilities
Total assets
Total liabilities
Carlsbad
Municipal
Water
District
$ 17,343,452
1,310,128
15,422,847
610,477
984,868
1,174,613
$ 2,769,958
$ 54,176,701
5,419,786
167,571
$ 59,428,916
$ 2,670,515
$ 34,999,591
$ 5,901,406
$103,778,057
11,448,049
Golf
Course
116,916
213,854
(96,938)
182,527
85,589
5,185,190
1,680,000
6,865,190
900,428
2,791,735
3.834.547
9,897,176
4,005.803
Sewer
6,090,817
1,313,414
3,159,787
1,617,616
1,203,578
2.821,194
49,808,601
6,444,869
56,253,470
2,507.028
42,759,281
10,864,254
98.944,506
13.507,626
Solid
Waste
591,118
490
128,104
462,524
91,985
554,509
3,421
3,421
-
^,341.531
.
2,368,622
25,375
Totals
24,142,303
2,624,032
18,924,592
2,593,679
984,868
2,652,703
6,231.250
109,173,913
13,544,655
167,571
122.550,997
6.077.971
82.892,138
20,600,207
214,988,361
28,986.853
Total equity $ 92.330.008 5.891.373 85,436.880 2.343.247 186.001,508
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(28) 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, because the
City has set aside sufficient monies to cover confirmed adverse actions.
89
90
CITY OF CARLSBAD
Required Supplementary Information
Year ended June 30, 1999
Risk Mitigation for the Year 2000 Issue
The City is in the process of evaluating its computer programs, computer equipment, and other
equipment containing embedded chips to ascertain which of these might be impacted by a failure
to properly recognize and process transactions dated on or after January 1, 2000. As of June 30,
1999, the unexpended portion of contracts entered into by the City with various vendors to
modify, replace or upgrade its computer systems and electronic equipment to reduce the risk of
year 2000 difficulties was approximately $221,563. These amounts include funds committed
toward the upgrading of City computer systems that were planned for upgrading without respect
to the year 2000 issue. Additional amounts may be expended for the City's year 2000
assessment, remediation, and testing activities, as well as amounts that may need to be expended
after January 1, 2000 to correct problems not previously detected and corrected by the City.
Because of the unprecedented nature of the year 2000 issue, it is not possible to provide
assurances that the City has or will achieve complete year 2000 compliance, even after
completing all planned year 2000 corrective actions and related testing. Nor can the City
determine the effect, if any, on City operations should entities external to the City (other
governments, significant vendors, suppliers, service providers, customers, taxpayers, businesses,
etc.) fail to achieve year 2000 compliance in a timely manner. An audit is not designed to
substantiate the assertions of management with respect to this issue or to evaluate the adequacy
of management's plans with respect to this issue. Generally, the City is in the assessment and
remediation stage of its year 2000 corrective action plan.
91
92
CO
3n>
n>o
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.
Major Service Areas
Community
Development
Administrative
Services
Policy/Leadership
Group
93
CITY OF CARLSBAD
General Fund
Schedule of Revenues - Budget and Actual
Budgetary Basis
Year Ended June 30, 1999
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Business license permits
Real property transfer taxes
Total taxes
Intergovernmental:
Vehicle licences
Homeowners exemptions
Other
Total intergovernmental
Licenses and permits:
Building permits
Other
Total licenses and permits
Charges for services:
Planning fees
Building department fees
Engineering fees
Ambulance fees
Recreation fees
Other
Total charges for services
Fines and forfeitures
Income from property and investments
Interdepartmental charges
Miscellaneous
Total revenues
Budget
$ 14,181,000
16,500,000
6,900,000
1,873.000
1,700,000
720,000
41,874,000
3,124,000
476,000
-
3,600,000
2,200,000
1,230,000
3,430,000
900,000
1,650,000
1,756.000
800,000
1.046,000
603,000
6,755.000
800,000
2.250.000
1.650.000
1.500.000
Actual on
Budgetary
Basis
14,196,095
17,129,474
7,010,249
1,954,185
1,737,850
1,080,646
43,108,499
3,264,818
251,204
364,889
3,880,911
2,524,063
1,302,623
3,826,686
853,255
1,656,345
1,700,756
858,112
1,034,345
483,625
6,586,438
804.258
1.992.453
1.933,820
1.190.009
Variance-
Over
(Under)
15,095
629.474
110.249
81.185
37.850
360,646
1,234.499
140,818
(224,796)
364,889
280,911
324.063
72.623
396,686
(46,745)
6,345
(55,244)
58,112
(11,655)
(119.375)
(168.562)
4,258
(257.547)
283.820
(309.991)
$ 61.859.000
~94
63.323.074 1.464,074
CITY OF CARLSBAD
General Fund
Schedule of Expenditures - Budget and Actual
Budgetary Basis
Year Ended June 30. 1999
Actual on Variance
Budgetary Over
Budget Basis (Under)
General government:
Policy and leadership group:
City council $ 216.940 213.240 (3.700)
City manager 1.390.428 1.254.234 (136.194)
City clerk 486,672 425.812 (60.860)
City attorney 647,393 647.393
City treasurer 138.832 107.018 (31.814)
Total policy and leadership group 2.880.265 2.647,697 (232.568)
Administrative services:
Finance 1.364.914 1,289.719 (75.195)
Purchasing 529.160 491.812 (37.348)
Human resources 1.550.239 1.240.865 (309.374)
Records management 1.319.500 1.319.500 -
Total administrative services 4.763,813 4.341.896 (421.917)
Non-departmental 2.075,421 386,710 (1,688,711)
Total general government 9,719,499 7,376.303 (2,343,196)
Public safety:
Police protection 12,149,281 11.742,407 (406.874)
Fire protection 10,787,919 10,016,036 (771,883)
Total public safety 22.937,200 21,758,443 (1.178.757)
Community development:
Administration 563,214 511.936 (51.278)
Hiring center 80.070 76.891 (3.179)
Geographic information systems 267,538 183.446 (84.092)
Economic development " 148.297 120.189 (28.108)
Community promotion 489,180 489.180
Planning ' 2,516,898 2,332,561 (184.337)
Building inspection 1,740,573 1,732,448 (8.125)
Total community development 5.805.770 5,446,651 (359.119)
Community services:
Library 3.523.150 3.411.479 (111.671)
Cultural arts 396.751 396,191 (560)
Park planning/recreation 3.029.300 3.029.219 (81)
Senior programs 355.915 280.651 (75.264)
Total community services 7.305.1 16 7.117.540 (187.576)
Public works:
Administration 720.954 653.220 (67.734)
Engineering 4.858.454 4.783.908 (74.546)
Park maintenance 2.443.637 2.269.172 (174.465)
Street and signal maintenance 2.391.363 2.094.847 (296.516)
Facilities maintenance 1.714.213 1.492.992 (221.221)
Traffic sign maintenance 402.006 374.542 (27.464)
Total public works 12.530.627 11.668.681 (861.946)
Total expenditures $ 58.298.212 53.367.618 (4.930.594)
95
CITY OF CARLSBAD
General Fund
Comparative Schedule of Revenues
Year Ended June 30, 1999
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Business license permits
Real property transfer taxes
Total taxes
Intergovernmental:
Vehicle licences
Homeowners exemptions
Other
Total intergovernmental
Licenses and permits:
Building permits
Other
Total licenses and permits
Charges for services:
Planning fees
Building department fees
Engineering fees
Ambulance fees
Recreation fees
Other
Total charges for services
Fines and forfeitures
Income from property and investments
Interdepartmental charges
Miscellaneous
Total revenues
1998
Actual
$ 12,410,095
14,817,057
6,046,092
1,713,526
1,603,744
835,530
37,426,044
2,970,189
234,323
275,841
3,480,353
2,094,523
1,208,600
3,303,123
1,148,396
1,393,860
2,327,574
747,425
962,332
540,630
7,120,217
444,597
1,816,943
1,919,341
484,184
1999
Actual
14,196,095
17,129,474
7,010,249
1,954,185
1,737,850
1,080,646
43,108,499
3,264,818
251,204
364,889
3,880,911
2,524,063
1,302,623
3,826,686
853,255
1,656,345
1,700,756
858,112
1,034,345
483,625
6,586,438
804,258
1,992,453
1,933,820
1,190,009
Increase
(Decrease)
1,786,000
2,312,417
964,157
240,659
134,106
245,116
5,682,455
294,629
16,881
89,048
400,558
429,540
94,023
523,563
(295,141)
262,485
(626,818)
110,687
72,013
(57,005)
(533,779)
359,661
175,510
14,479
705,825
$ 55,994,802 63,323,074 7,328,272
96
CITY OF CARLSBAD
General Fund
Comparative Schedule of Expenditures
Year Ended June 30. 1999
1998 1999 Increase
Actual Actual (Decrease)
General government:
Policy and leadership group:
City council $ 187,979 211.820 23,841
City manager 829,595 1.2R243 388*648
City clerk 295,918 389,430 93,512
City attorney 604,001 641,774 37.773
Citv treasurer 100,885 107.181 6.296
Total policy and leadership group 2,018,378 2.568,448 550,070
Administrative services:
Finance 1,066,915 1,204,271 137.356
Purchasing 414,684 464,256 49,572
Human resources 1,169,301 997,634 (171,667)
Total administrative services 2,650,900 2,666,161 15,261
Non-departmental 438,840 325,188 (113,652)
Total general government 5,108,118 5,559,797 451,679
Public safety:
Police protection 10,310,748 11,728,212 1,417,464
Fire protection 7,597,003 9,884,791 2,287,788
Total public safety 17,907,751 21,613,003 3,705,252
Community development:
Administration 510,015 512,386 2,371
Hiring center 75,774 76,821 L047
Geographic information systems 142,738 154,853 12,115
Economic development 99,820 123,083 23,263
Community promotion 256,487 325,356 68.869
Planning 2,215,355 2,191,903 (23^452)
Building inspection 1,267,581 1,617,352 349,771
Total community development 4,567,770 5,001,754 433,984
Community services:
Library 2,769,284 3,347,711 578,427
Cultural arts 284,165 368,826 84.661
Park planning/recreation 2,622,327 2,857,937 235,610
Senior programs 268.196 272,977 4,781
Total community services 5,943.972 6,847,451 903,479
Public works:
Administration 86.279 692,420 606,141
Engineering 4.174.293 4,014,459 (159.834)
Park maintenance 1,854,760 2,078,123 223,363
Street and signal maintenance 1.660.395 2,054.382 393.987
Facilities maintenance 1,303.571 1.404,510 100.939
Traffic sign maintenance 474.797 319.262 (155.535)
Total public works 9.554.095 10.563.156 1.009.061
Total expenditures $ 43,081,706 49.585,161 6.503.455
97
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 receipt of fees charged to developers to provide funding assistance for affordable
housing needs of lower and moderate income households.
Calavera Heights Mitigation
To account for the funding of a maintenance and management program of the Calavera Heights
Gnatcatcher Mitigation Preserve.
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 and commercial and residential loans for community
development.
Donations and Bequests
To account for donations, scholarships, bequests and endowments received from both outside
parties and the General fund, designated for specific City purposes.
Federal Grants
To account for federal grants received to support the City's law enforcement and fire mitigation
programs.
Gas Tax
To account for receipts and expenditures of money apportioned under the Streets and Highways
Code of the State of California.
Library Audio-Visual Insurance
To account for revenues and expenditures on rental of audio-visual materials.
98
SPECIAL REVENUE FUNDS (CONTINUED)
Low and Moderate Income Housing
To account for money administered by the Carlsbad Redevelopment Agency for designated low
and moderate income housing.
Police Asset Forfeiture
To account for money received under federal and state programs distributing property
confiscated from illegal activities.
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,
landscaping and channel dredging.
State Grants
To account for State of California library, civic arts and law enforcement grants.
Public Safety
Community
Development
99
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30, 1999
Calavera Community
Affordable Heights Civic Arts Development
Housing Mitigation Program Block Grant
Donations
and Bequests
Federal
Grants
Assets
Cash and investments
Receivables:
Loans
Taxes
Accrued interest
Accounts, net
Due from other governments
Advances to other funds
Prepaid expenditures
Total assets
Liabilities and Fund Balances
Liabilities:
Accrued liabilities
Due to other funds
Deposits payable
Due to other governments
Total liabilities
Fund balances:
Reserved for:
Loans receivable
Advances to other funds
Prepaid expenditures
Low and moderate income
housing
Encumbrances
Unreserved:
Designated for approved
capital projects
Designated for continuing
appropriations
Undesignated
Total fund balances
Total liabilities and fund
balances
$6,910,887 132,657 267,408
2,729,902
5,000
509
2,729,902
509
4,401,538
32,594
2.432,393
9,596,936
5,209
5,568
53,314
363
5,924,155 153,858
15,550
105,192
132,657 146,666
5,568
363
96,512
(92,670)
132,657 267,408 9,773
100
$9,646,298 132,657 267,408
$ 49,362
.
49,362
64,454
40,099
13,220
1,362
54,681
5,924,255 153,858
7,409 10,868
6,842
_
7,409 17,710
1,893 33,489
42,288 102,659
5,862,665
5,916,846 136,148
$9,646.298 132,657 267,408 64,454 5,924,255 153,858
100
Library
Gas Audio-Visual
Tax Insurance
5,168,669 7,163
_
-
-
-
-
2,000,000
-
7,168,669 7,163
64,202 7,163
-
-
-
64,202 7,163
2,000,000
-
.
226,587 173
-
1,688,678
3,189,202 (173)
7,104,467
Low and
Moderate Police Section 8 Special
Income Asset Housing Senior Benefit
Housin" Forfeiture Authority Nutrition Districts
1,603,851 460,650 2,187 1 2,780,131
2,732,414 ...
8,915 - - - 10,553
84 - - -
9,378 247 1,900
75,394 43,490
.
509 - 204,932
4,345,773 460,650 291,891 43,738 2,792,584
4,115 - 28,623 16,818 109,730
62,500 26,920
47,614
-
4,115 - 138,737 43,738 109,730
2,732,414 ...
.
509 - 204,932
_
7.709 810 2,380 20,518
-
60,831
1,608.735 392.110 (52.588) (2.380) 2,662,336
4,341,658 460,650 153.154 - 2.682.854
State
Grants Totals
419.087 23,835,913
5,467,884
19,468
84
16,625
172,198
2,000.000
206,313
419,087 31,718,485
39,424 377,813
109,482
47,614
1.362
39,424 536,271
5,467,884
2,000,000
206.313
4.401,538
19,478 467.693
105.192
172.762 2,067,218
187,423 16,466,376
379.663 31.182.214
7.168.669 7,163 4.345,773 460.650 291.891 43.738 2.792.584 419.087 31,718.485
101
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues. Expenditures and Changes in Fund Balances
Year Ended June 30. 1999
Calavera Community
Affordable Heights Civic Arts Development Donations Federal
Housing Mitigation Program Block Grant and Bequests Grants
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and
investments
Contributions from property
owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Community development
Community services
Public works
Total expenditures
Excess(deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
(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 vear
$
671.224
2.899.810 6.037 (46.839)
6.697.126 126.620 314.247
94.708
381.075
2.665.438
6.326
3,052,839
153,029
153.029
2,899.810
-
6.037 13.358 52.913 88.325
3.196.577
245.896
6,037 13.358 724.137 3.530.798
730,104
60,197 - 103,462
60,197 730.104 103.462
6,037 (46.839) (5,967) 3.427.336
5.550 760.000
5.550 760.000
3,352
98.060
84.105
5.061
89.166
8.894
9.856
9.856
(417) 4.187.336 18.750
1.729.510 117.398
$9.596.936 132.657 267.408 9.773 5.916.846 136.148
102
Low and
Library Moderate
Gas Audio-Visual Income
Tax Insurance Housing
1.367.844 - 311.462
.
65.096
-
246.417 360 25.553
_
_
178
1,614.261 65,456 337.193
75,135
67.647
526,219
526.219 67.647 75.135
1.088.042 (2,191) 262.058
7.000
(7.500) - (5.550)
(500) - (5.550)
Police
Asset
Forfeiture
-
-
131.697
21.474
_
-
-
153.171
65.051
-
-
-
65.051
88.120
(9,856)
(9.856)
Section 8
Housing Senior
Authority Nutrition
2.691.549 111.255
-
-
10.733
_
103.895
39.329
2,741,611 215,150
2,676,612
215,150
-
2,676.612 215,150
64,999
-
Special
Benefit State
Districts Grants
499.778
-
-
117.536 18.992
1.535.390
-
300.966
1.953.892 518.770
165.592
-
242.410
1.600.308
1.600.308 408.002
353.584 110.768
-
Totals
1.679.306
4.068,514
65.096
131.697
986.125
7.397.405
349.791
346.799
15.024.733
314.748
3.634,880 0 r
693.927 ;c,
2.126.527
6,770.082
8.254.65 1
782,406
(22,906)
759.500
1.087.542 (2.191) 256.508 78.264 64.999 353.584 110.768 9.014.151
6.016.925 2.191 4.085.150 382.386 88.155 2.329.270 268.895 22.168.063
7.104.467 4.341.658 460.650 153.154 2.682.854 379.663 31.182.214
103
CITY OF CARLSBAD
Special Rexcnue Funds
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30. 1999
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and
investments
Interdepartmental services
Contributions from property
owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Community development
Community services
Public works
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Affordable Housing Trust
Budget
261,461
261.461
Actual on Variance-
Budgetary Over
Basis (Under)
375,000 381.075 6,075
2,972,100 2.665,438 (306.662)
6,326 6.326
3,347,100 3,052,839 (294,261)
185.219 (76.242)
185.219 (76,242)
$3,085.639 2.867,620 (218.019)
Calavcra Heights Mitigation
Budget
Actual on
Budgetary
Basis
6,037
6.037
6.037
Variance-
Ovcr
(Under)
6,037
6.037
6.037
104
Civic Arts Program Community Development Block Grant
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and
investments
Interdepartmental services
Contributions from property
owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Community development
Community services
Public works
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Actual on Variance-
Budgetary Over
Budget Basis (Under)
7,744
Actual on Variance-
Budgetary Over
Budget Basis (Under)
13,358 5.614
722,620 671,224 (51,396)
52,913 52,913
-
7,744 13,358
180,939 180,939
180,939 180,939
(173,195) (167,581)
52,900
5,614 775,520 724,137
1,122,415 1,091,565
1,122,415 1,091,565
5,614 (346,895) (367,428)
(52,900)
(51,383)
(30,850)
(30,850)
(20,533)
(Continued)
105
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30. 1999
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property' and
investments
Interdepartmental sendees
Contributions from property
owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Community development
Community sendees
Public works
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Donations and Bequests Federal Grants
Budget
10.400
Actual on
Budgetary
Basis
Variance-
Over
(Under)
88.325 77.925
3.196,577 3.196,577
376,500 245,896 (130.604)
Budget
Actual on Variance-
Budgetary Over
Basis (Under)
88.708
3.800
94.708
386.900 3.530.798 3.143,898 92.508 98.060
$ 129,055 3.373.155 3.244.100 (258.876) (253,324)
(448)
257.845
257.845
345.384
157.643 (100.202) 6.000
157.643 (100.202) 351.384
346.323
5.061
351.384
939
(939)
_
5 552
106
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and
investments
Interdepartmental services
Contributions from property
owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Community development
Community services
Public works
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Gas Tax Library Audio-Visual Insurance
Actual on Variance- Actual on Variance-
Budgetary Over Budgetary Over
Budget Basis (Under) Budget Basis (Under)
1,300,000 1,367,844
250.000 246,417
1,550,000 1,614,261
2,446,038 2,446,038
2,446,038 2,446,038
67.844
65,000
(3,583) 400
64,261 65,400
70,297
70,297
65,096
360
65,456
67,820
67,820
(896,038) (831,777) 64.261 (4,897) (2.364)
96
(40)
56
(2,477)
(2,477)
2.533
(Continued)
107
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30. 1999
Low and Moderate Income Housing Police Asset Forfeiture
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and
investments
Interdepartmental services
Contributions from property
owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Community development
Community services
Public works
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Actual on Variance-
Budgetary Over
Budget Basis (Under)
Actual on Variance-
Budgetary Over
Budget Basis (Under)
302.500 311,462 8.962
124,000 131,697 7,697
80,000 25,553 (54,447) 17,000 21,474 4,474
-
382,500
144,892
144,892
178
337,193
75,135
75,135
178
(45,307)
(69,757)
(69,757)
500
141,500
153,017
153,017
-
153,171
133,591
133,591
(500)
11,671
(19,426)
(19,426)
$ 237.608 262.058 24,450 (11,517) 19,580 31,097
108
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and
investments
Interdepartmental services
Contributions from property
owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Community development
Community services
Public works
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Section 8 Housing Senior Nutrition
Actual on Variance-
Budgetary Over
Budget Basis (Under)
12,000
50,000
Actual on Variance-
Budgetary Over
Budget Basis (Under)
2.612.164 2.691.549
10733
79,385 101,137 111,255
(1,267)
94,358 103,895
39,329 (10,671)
2,674,164 2,741,611 67,447 195,495 215,150
3,012,416 2,679,867 (332,549)
218.082 217,530
3,012,416 2,679,867 (332,549) 218,082 217,530
(338,252) 61,744 399,996 (22,587)(2,380)
10.118
9.537
19,655
(552)
(552)
20,207
(Continued)
109
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30. 1999
Special Benefit Districts State Grants
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and
investments
Interdepartmental services
Contributions from property
owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Community development
Community services
Public works
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Budget
Actual on Variance-
Budgetary Over
Basis (Under)Budget
Actual on Variance-
Budgetary Over
Basis (Under)
418.600 499.778 81.178
124,500
123,500
1,687,400
9,500
1,944,900
1,759,976
1,759,976
117,536
1,535,390
300,966
1,953,892
1,615,254
1,615,254
(6,964)
(123,500)
(152,010)
291,466
8,992
(144,722)
(144,722)
15,900
-
-
434,500
317,897
299,548
617,445
18,992
-
-
518,770
317,895
281,592
599,487
3,092
-
-
84,270
(2)
(17,956)
(17,958)
$ 184.924 338,638 153,714 (182,945) (80,717)102.228
110
Totals
Actual on Vanancc-
Budgetary Over
Budget Basis (Under)
1.602,500 1,679.306 76.806
3,943.229 4,068,514 125.285
65.000 65,096 96
124.000 131.697 7.697
896,744 986,125 89.381
123,500 - (123.500)
4,659.500 7,397,405 2.737,905
470,858 349,791 (121,067)
112,900 346,799 233,899
11.998.231 15.024.733 3.026.502
816.298 797,809 (18,489)
4.541.184 4,031,786 (509,398)
1.032,711 910.585 (122,126)
4,206,014 4,061,292 (144.722)
10.596.207 9,801,472 (794.735)
1.402.024 5.223.261
(Concluded)
111
112
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.
HOSP Grove COPs
To account for payment of debt service on the 1997 Certificates of Participation (1988
Refunding) issued to purchase Hosp Grove.
Redevelopment Bonds
To account for payment of debt service on bonds issued to finance improvements for the
Carlsbad Redevelopment Agency.
Housing and
Redevelopment
Bonds
113
CITY OF CARLSBAD
Debt Service Funds
Combining Balance Sheet
June 30, 1999
Assets
Hosp Grove Redevelopment
COPs Bonds Totals
Cash and investments
Receivables:
Taxes
Accrued interest
Total assets
Fund Balances
Reserved for debt service
Unreserved:
Designated for future debt service
Total fund balances
846,430 921,765 1,768,195
$
$
15,575
862,005
659,500
202,505
35,659
337
957,761
869,000
88,761
35,659
15,912
1,819,766
1,528,500
291,266
$ 862,005 957,761 1,819,766
114
CITY OF CARLSBAD
Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1999
Hosp Grove Redevelopment
COPs Bonds Totals
Revenues:
Taxes
Income from property and
investments
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over(under)
expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Proceeds of advances
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
Fund balances at end of vear
45,050
45,050
520,000
277,558
797,558
(752,508)
800,000
800.000
47,492
814,513
$ 862,005
1,246,185
43.332
1.289,517
15,262
304,921
1,367,168
1,687,351
(397,834)
(380,000)
588,763
208,763
(189,071)
1,146,832
957.761
1,246.185
88,382
1,334,567
15,262
824,921
1,644,726
2,484,909
(1,150,342)
800,000
(380,000)
588,763
1,008,763
(141.579)
1.961.345
1,819.766
115
CITY OF CARLSBAD
Debt Service Fund
Redevelopment Bonds
Schedule of Revenues and Expenditures
Budget and Actual (Budgetary Basis)
Year Ended June 30, 1999
Revenues:
Taxes
Income from property and
investments
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Budget
1,200,000
75,000
,275,000
26,000
Actual on
Budgetary
Basis
1,246,185
43,332
1,289,517
15,262
Variance-
Over
(Under)
46,185
(31,668)
14,517
(10,738)
302,000
1,380,763
1,708,763
304,921
1,367,168
1,687,351
2,921
(13,595)
(21,412)
$ (433,763)(397,834)35,929
116
117
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.
Bridge and Thoroughfare Districts
To account for receipts of fees charged to developers for street and highway construction.
City and County Agencies
To account for receipts from other cities and the County of San Diego for street construction and
improvements.
Community Facilities District No. 1
To account for civic facilities, freeway interchanges, and road segments financed by Community
Facilities District No. 1 "special tax revenues" (Mello Roos).
Federal Grants
To account for capital projects financed by federal grants.
General Capital Construction
To account for transfers from the General fund for various 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, 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.
118
CAPITAL PROJECTS FUNDS (CONTINUED)
Public Facilities Construction
To account for receipts of fees charged to developers for specific public facilities such as
libraries and fire stations necessitated by growth.
Rancho Santa Fe Road Project
To account for amounts paid by developers for Rancho Santa Fe Road construction and
improvements.
Redevelopment Agency
To account for financial resources segregated for the rehabilitation of commercial and public
property and capital projects in the Carlsbad Village area.
Sales Tax/TransNet
To account for receipts of County sales tax allocated by the San Diego County Regional
Transportation Commission to finance transportation projects.
State Grants
To account for capital projects financed by state grants.
Traffic Impact Projects
To account for receipts of fees charged to developers for street construction and improvement.
Water, Sewer and
Drainage Projects
Street, Interchange
and Traffic Signal
Projects
119
Assets
Cash and investments
Receivables:
Taxes
Accounts, net
Accrued interest
Due from other governments
Prepaid expenditures
Total assets
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet
June 30, 1999
Bridge and City and Community General Palomar
Assessment Thoroughfare County Facilities Federal Capital Airport Road
Districts Districts Agencies District No. 1 Grants Construction East Project
$ 6,651,328 5,521,279
69,223
1,008,556 31,039,958
2,374
3,904,687
63,526
200,725
$ 6,720,551 5,521,279 1,008,556 31,042,332 63,526 4,105,412
41,707
41,707
Liabilities and Fund Balances
Liabilities:
Accrued liabilities
Due to other funds
Advances from other funds
Deposits payable
Deferred revenue
Total liabilities
Fund balances:
Reserved for:
Prepaid expenditures
Encumbrances
Unreserved:
Designated for continuing
appropriations
Designated for approved
capital projects
Undesignated
Total fund balances
Total liabilities and
fund balances
$
-
-
-
_
610,783
-
2,000,000
.
2,610,783
1,934 1,342,112 - 71,397
56,688
-
31,625
1,934 1,342,112 56,688 103,022
-
-
-
-
_
200,725
26,308 1,547,846 260,783 8,683,124 19,925 955,563
5,938,571 1,362,650 105,873 10,323,248
755,672 - 639,966 10,693,848
2,224,813
(13,087) 621,289
6,720,551 2,910,496 1,006,622 29,700,220 6,838 4,002,390
41,707
41,707
6,720,551 5,521,279 1,008,556 31,042,332 63,526 4,105,412 41,707
120
Planned
Local Public
Park Drainage Facilities
Development Facilities Construction
7,218,295 6,013,269 30,236,104
487,520
7,218,295 6,500,789 30,236,104
1,759 3,984 964,966
2,550,000
293,874 31,625
2,551,759 297,858 996,591
8,376 179,974 1,568,714
241,524 811,784 4,468,632
4,416,636 5,211,173 23,202,167
4,666,536 6,202,931 29,239,513
7,218,295 6,500,789 30.236,104
Rancho
Santa Fe
Road Redevelopment Sales Tax/ State
Project Agency TransNet Grants
16,542,626 2,493,486 12,206,020 401,538
95,571
28,657
15,881
6,741
16,542,626 2,624,455 12,206,020 417,419
49,570 615,993 4,723
9,323
29,800
88,693 615,993 4,723
6,741
558,856 28,179 2,544,371 48,148
1,817,561 1,818,131 6,579,978 286,453
14,166,209 682,711 2,465,678 78,095
16,542,626 2,535,762 11,590,027 412,696
16.542,626 2,624,455 12,206,020 417,419
Traffic
Impact
Projects Totals
4,518,016 127,796,869
2,374
583,091
97,880
79,407
207,466
4,518,016 128,767,087
172,100 3,839,321
56,688
1,000,000 5,550,000
9,323
20,400 407,324
1,192,500 9,862,656
207,466
228,845 16,659,012
3,096,671 39,117,596
62,312,155
608,202
3,325,516 118,904,431
4,518,016 128,767,087
121
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 1999
Bridge and City and Community General Palomar
Assessment Thoroughfare County Facilities Federal Capital Airport Road
Districts Districts Agencies District No. 1 Grants Construction East Project
Revenues:
Taxes
Intergovernmental
Charges for services
Income from property and
investments
Contributions from property
owners
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Capital outlay
Total expenditures
Excess (deficiency)
of revenues over
(under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses
Fund balances at beginning
of year
Residual equity transfers out
Fund balances at end of vear
10,934,034 539.778
662.618 63,526
283,303
17,095,007
4,246
17,382,556
302,124
11,622,439
11,924,563
244,956
995,595
594
1,241,145
1,955,872
1,955,872
156,826
-
819,444
38,974
4,219,482
4,258,456
1,504,366
1,237,526
13,675,926 63,526
121,682
16,626,442 56,692
16,748.124 56,692
183.135
505
723,418
328,271
1,365,563
1,693,834
1 .908
-
1,908
-
223
5,457,993 (714,727) (3,439,012) (3,072,198) 6,834 (970,416)
5,478,151 (714,727) (3,439,012) (3,072,198) 6,834 (774,611)
1,242,400 3,625,223 4,445,634 32.772,418 4.777,001
1,685
20,158
20,158
324,699
(128,894)
195,805
1,685
40,022
S 6.720,551 2.910,496 1.006.622 29.700.220 6,838 4,002.390 41.70/
122
Planned Rancho
Local Public Santa Fe
Park Drainage Facilities Road Redevelopment Sales Tax/ State
Development Facilities Construction Project Agency TransNet Grants
91,268 - 8,760,000 274.777
153,613
357,484 258,106 1,194,344 873,104 115,038 492,340 17,869
1,017,747 697,025 8,588,307 6,916,959
322 - - - 624
1,375,553 955,131 9,782,651 7,881,331 269,275 9,252,340 292,646
418,196 - 219
4,349,462 38,091 2,339,380 4,219,466 10,733 3,452,629 193,926
4,349,462 38,091 2,339,380 4,219.466 428,929 3,452,629 194,145
(2,973,909) 917,040 7,443,271 3,661,865 (159,654) 5,799,711 98,501
19,900 - 380,000 88,641 128,894
(246,619)
19,900 - 380,000 88,641 (117,725)
Traffic
Impact
Projects
175,826
1.817,733
1,208
1,994,767
1,656,187
1,656,187
338,580
51,221
51,221
Totals
11.473,812
9,852,189
153.613
5,858.605
38,365,899
7,499
65,711,617
1,209,466
52,106,587
53,316,053
12,395,564
1,013,513
(375,513)
638,000
(2,973,909) 917,040 7,463,171 3,661,865
7,640,445 5,285.891 21.776,342 12,880,761
220.346 5,888,352 (19,224) 389,801 13.033,564
2,315.416 5,701,675 471,335 2.935,715 105,910.282
(39,415) - (39.415)
4.666,536 6,202,931 29,239,513 16.542.626 2.535,762 11,590.027 412.696 3,325.516 118,904,431
123
124
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.
Carlsbad Municipal
Water District
125
CITY OF CARLSBAD
Enterprise Funds
Combining Balance Sheet
June 30. 1999
Assets:
Current assets:
Cash and investments
Receivables:
Taxes
Accounts, net
Due from other funds
Due from other governments
Inventory
Total current assets
Restricted assets:
Cash and investments
Accrued interest
Total restricted assets
Fixed assets
Less accumulated depreciation
Fixed assets, net
Total assets
Liabilities and Fund Equity
Current liabilities:
Accrued liabilities
Due to other funds
Due to other governments
Estimated claims payable
Current portion of long-term debt
Deposits payable
Total current liabilities
Current liabilities payable from
restricted assets - accrued interest
payable
Advances from other funds
Deferred revenue
Loan payable
Certificates of participation, net of
unamortized issuance costs and
deferred charges of $301,029
Installment purchase agreement, net of
unamortized issuance costs and
deferred charges of $908,992
Accrued assessments
Total liabilities
Fund equity:
Contributed capital
Retained earnings:
Reserved for debt service
Unreserved
Total retained earnings
Total fund equity
Total liabilities and fund equity
Carlsbad
Municipal
Water District
$ 36,839.690
10.904
3,335,613
58,214
231.817
40,476,238
761,241
6,832
768,073
79,107,441
(16,573,695)
62,533,746
$ 103,778,057
$ 2,893,612
161,665
922,153
32,000
1,099,515
367,702
Golf
Course Sewer
2,946.613 45,022.236
161.665
6.597
2.946,613 45,190,498
954.404
28.334
982,738
6,950.563 69,987,975
(17,216,705)
6,950,563 52,771,270
9,897,176 98,944,506
54 502,839
154,824 440,000
1,488,378
5,476,647 154,878 2,431,217
69,996 16,378 212,155
2,737.200
1,963,246
1,792.435
4,108,971
8,901,008
1.097,347
11,448,049 4,005,803 13,507,626
59.428.916 6,865.190 56.253,470
740,000 - 942.671
32.161.092 (973.817) 28,240,739
32.901.092 (973.817) 29.183.410
92.330.008 5.891.373 85.436,880
Solid
Waste
2,291,282
41,842
33,782
2,366,906
2,451
(735)
2,368,622
25,375
25,375
25.375
2.339.826
2.339.826
2,343.247
Totals
87,099,821
52.746
3,369,395
161,665
58,214
238,414
90,980,255
1,715,645
35,166
1.750.811
156,048,430
(33,791,135)
1,716 122,257,295
214,988,361
3,421.880
161,665
922.153
32,000
1,694,339
1.856,080
8,088,117
298.529
2,737,200
1,963,246
1,792,435
4.108.971
8,901,008
1,097.347
28,986,853
3,421 122,550.997
1,682.671
61,767.840
63.450.511
186,001,508
$ 103,778.057 9.897,176 98.944,506 2,368.622 214.988.361
126
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 1999
Operating revenues:
Water sales
Sewer services charges
Other charges for services
Contributions from other
government agencies
Miscellaneous
Total operating revenues
Operating expenses:
Plant operations
Purchased water
Depreciation
General and administrative
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Income from property and investments
Interest expense and fees
Gain (loss) on sale of property
Property taxes
Miscellaneous income (expense)
Amortization of issuance costs
Net income (loss)
Retained earnings (deficit) at beginning
of year
Retained earnings (deficit) at end of year
Carlsbad
Municipal Golf
Water District Course
$ 15,922,080
940,601
396,914
83,857 116,916
17,343,452 116,916
9,624,615
1,310,128
5,798,232 213,854
16,732,975 213,854
610,477 (96,938)
1,613,092 182,527
(423,039)
(184)
984,868
814
(16,070)
2,159,481 182,527
2,769,958 85,589
30,131,134 (1,059,406)
$ 32,901,092 (973,817)
Sewer Solid Waste
5,470,421
94,196 212,652
526,200 378,466
6,090,817 591,118
1,520,000
1,313,414 490
1,639,787 128,104
4,473,201 128,594
1,617,616 462,524
1,806,512 91,985
(602,934)
1,203,578 91,985
2,821,194 554,509
26,362,216 1,785,317
29,183,410 2,339,826
Totals
15,922,080
5,470,421
1,247,449
396,914
1,105,439
24,142,303
1,520,000
9,624,615
2,624,032
7,779,977
21,548,624
2,593,679
3,694,116
(1,025,973)
(184)
984,868
814
(16,070)
3,637,571
6,231,250
57,219,261
63,450,511
127
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 1999
Carlsbad
Municipal
Water District Golf Course Sewer Solid Waste Totals
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
(Increase) decrease in due from other governments
(Increase) decrease in inventory
Increase (decrease) in accnied liabilities
Increase (decrease) in due to other governments
Increase (decrease) in deposits payable
Increase (decrease) in deferred revenue
Increase (decrease) in loans payable
Net cash provided by (used for) operating
activities
Cash flows from noncapital financing activities:
Cash received from other funds
Cash paid to other funds
Net cash provided by (used for) noncapital
financing activities
Cash flows from capital and related financing
activities:
Purchases of fixed assets
Principal payment on bonds
Interest and other fees paid
Property taxes received
Capital contributions received
Net cash provided by (used for)
capital and related financing activities
Cash flows from investing activities:
Interest on investments
Net cash provided by (used for)
investing activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
$ 610,477
1,310.128
(97,319)
36,296
(3,847)
354,182
918,519
30,746
-
(101,570)
3,057,612
(25,692)
(25,692)
(2,645,714)
(955,000)
(333,231)
984,868
5,399,243
2,450.166
(96,938) 1.617,616
1,313,414
-
-
608
(8,666) 348,547
-
328,507
(107,532)
-
(105,604) 3,501,160
1,680,000 25,692
-
1,680,000 25,692
(900,428) (2,259,030)
(733,033) (425,000)
(528,340)
-
5.044,569
(1,633,461) 1,832,199
462,524 2.593.679
490 2.624.032
25,045 (72,274)
36,296
(3.239)
19,372 713,435
918,519
(51) 359,202
(107,532)
(101,570)
507,380 6,960,548
1,705,692
(25,692)
1,680,000
(5,805,172)
(2,113,033)
(861,571)
984,868
10.443,812
2.648.904
1.613,092 182,527 1,806.670 91,985 3.694.274
1.613,092 182.527 1,806,670 91,985 3.694.274
7.095.178 123.462 7.165,721 599.365 14.983,726
29,765,753 2,823,151 37,857.213 1.691.917 72,138,034
$36.860.931 2,946.613 45.022,934 2,291,282 87,121,760
128
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Cash Flows
(Continued)
Carlsbad
Municipal
Water District Golf Course Sewer Solid Waste Totals
Reconciliation of cash and cash equivalents to amounts
reported on the balance sheet:
Reported on the balance sheet:
Cash and investments $36,839,690 2,946,613 45,022,236 2,291,282 87.099,821
Restricted assets:
Cash and investments 761,241 - 954.404 - 1,715,645
Less investments not meeting the definition of cash
equivalents:
Investment contracts (740,000) - (953,706) - (1,693,706)
Cash and cash equivalents at end of year $36,860,931 2,946,613 45,022,934 2,291,282 87,121,760
Supplemental schedule of noncash investing,
capital and financing activities:
Capital assets contributed by (to) other funds $ (167.571) - 1,400,300 - 1,232,729
129
130
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.
Fleet Management
To account for charges to other funds to provide fleet maintenance and accumulate funds for fleet
replacement.
Health Insurance
To account for charges to other funds and from employees to provide health insurance for full-
time City employees.
Information Systems
To account for charges to other funds for information system services.
Risk Management
To account for charges to other funds to insure for liability claims against the City.
Workers' Compensation
To account for charges to other funds to insure against Workers' Compensation claims.
Workers'
Compensation
131
CITY OF CARLSBAD
Internal Service Funds
Combining Balance Sheet
June 30, 1999
Fleet Health Information Risk Workers'
Management Insurance Systems Management Compensation Totals
Assets
Current assets:
Cash and investments
Receivables:
Accounts, net
Inventory
Total current assets
Fixed assets:
Equipment and vehicles
Less accumulated
depreciation
Fixed assets, net
Total assets
Liabilities and Fund Equity
Current liabilities:
Accounts payable
Accrued wages payable
Accrued vacation payable
Estimated claims payable
Total current liabilities
Fund equity:
Contributed capital
Retained earnings:
Unreserved
Total fund equity
Total liabilities and
fund equity
$5,117,926
24,930
100,495
5,243,351
8,497,972
(4,303,505)
4,194,467
$9,437,818
$ 258,129
44,150
17,256
-
319,535
3,333,739
5,784,544
9,118,283
319,487 1,364,502 3,260,257
9,093 200
.
328,580 1,364,702 3,260,257
2,329,312
(1,430,483)
898,829
328,580 2,263,531 3,260,257
13,620 159,772 36,620
44,007 10,871
37,681 18,489
342,356 - 137,232
355,976 241,460 203,212
1,579,278 1,911,939
(27,396) 442,793 1,145,106
(27,396) 2,022,071 3,057,045
2,068,205 12,130,377
34,223
100,495
2,068,205 12,265,095
10,827,284
(5,733,988)
5,093,296
2,068,205 17,358,391
5,312 473,453
7,204 106,232
73,426
833,745 1,313,333
846,261 1,966,444
752,600 7,577,556
469,344 7,814,391
1,221,944 15,391,947
M37,818 328,580 2,263,531 3,260,257 2,068,205 17,358,391
132
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 1999
Fleet Health Information Risk Workers'
Management Insurance Systems Management Compensation Totals
Operating revenues:
Other charges for services
Miscellaneous
Total operating revenues
Operating expenses:
Depreciation
Fuel and supplies
Claims expense
General and administrative
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Income from property and investments
Gain (loss) on sale of property
Total nonoperating revenues
(expenses)
Net income (loss)
Retained earnings (deficit) at beginning
of year
Retained earnings (deficit)
at end of year
$2,752,815
1,379
2,754,194
823,054
443,188
1,034,968
2,301,210
452,984
217,993
119,201
337,194
2,177,376
604,281
2,781,657
2,635,961
2,635,961
145,696
7,779
7,779
1,564,400
2,106
1,566,506
341,815
7,476
1,303,601
1,652,892
(86,386)
52,301
52,301
691,327
9,765
701,092
503,517
166,128
669,645
31,447
147,909
147,909
504,112
33,493
537,605
694,597
60,289
754,886
(217,281)
99,777
99,777
7,690,030
651,024
8,341,054
1,164,869
450,664
3,834,075
2,564,986
8,014,594
326,460
525,759
119,201
644,960
790,178 153,475 (34,085) 179,356 (117,504) 971,420
4,994,366 (180,871) 476,878 965,750 586,848 6,842,971
$5,784,544 (27,396) 442,793 1,145,106 469,344 7,814,391
133
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30. 1999
Fleet Health Information Risk Workers'
Management Insurance Systems Management Compensation Totals
Cash flows from operating activities:
Operating income (loss) $ 452.984 145.696 (86.386) 31.447 (217,281) 326.460
Adjustments to reconcile operating income
(loss) to net cash provided by operating
activities:
Depreciation and amortization 823.054 - 341.815 - - 1,164.869
(Increase) decrease in receivables (19.709) (7.863) (200) - - (27.772)
(Increase) decrease in inventon' (15.661) ... . (15,661)
(Increase) decrease in prepaid expenses - 33,144 - 166.531 - 199,675
Increase (decrease) in accrued liabilities 193,286 (1.450) 159.117 51,522 (11.306) 391.169
Increase (decrease) in estimated claims
payable - 10.356 - (91.658) 136.445 55.143
Net cash provided by (used for)
operating activities 1.433.954 179,883 414.346 157.842 (92.142) 2.093.883
Cash flows from capital and related
financing activities:
Purchases of fixed assets (944.692) - (139.282) - - (1.083.974)
Cash flows from investing activities:
Interest on investments 217.993 7.779 52.301 147.909 99.777 525.759
Net increase (decrease) in cash and cash
equivalents 707.255 187.662 327,365 305.751 7,635 1.535.668
Cash and cash equivalents at beginning
of year 4.410.671 131,825 1.037.137 2.954.506 2.060.570 10.594.709
Cash and cash equivalents at end of year $ 5.117.926 319.487 1.364.502 3.260.257 2.068.205 12.130.377
Supplemental schedule of noncash investing,
capital and financing activities:
Capital assets contributed by (to) other
funds ' $ 138.738 - 32.457 - - 171.195
134
135
136
AGENCY FUNDS
Agency funds are used to account for assets held by a government for other funds, governments
or individuals.
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 transaction on assessment district bonds for which the City is not
obligated.
137
CITY OF CARLSBAD
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year Ended June 30, 1999
Deferred Compensation:
Assets:
Deferred compensation investments
Liabilities:
Deferred compensation payable
Contractors' and Miscellaneous Deposits:
Assets:
Cash and investments
Accounts receivable
Total assets
Liabilities:
Accrued interest payable
Deposits payable
Total liabilities
Assessment Districts:
Assets:
Cash and investments
Taxes receivable
Accrued interest
Total assets
Liabilities:
Due to bondholders
Totals - All Agency Funds:
Assets:
Cash and investments
Deferred compensation investments
Accounts receivable
Taxes receivable
Accrued interest
Total assets
Liabilities:
Accrued interest payable
Due to bondholders
Deposits payable
Deferred compensation payable
Total liabilities
Balance at
June 30, 1998
$ 3,600,462
$ 3,600,462
$ 7,672,362
-
$ 7,672,362
$ 1,321,104
6,351,258
$ 7,672,362
$ 6,328,514
12,239
26,581
$ 6,367,334
$ 6,367,334
$ 14,000,876
3,600,462
-
12,239
26,581
$ 17,640,158
$ 1.321,104
6,367,334
6,351,258
3,600,462
$ 17,640,158
Additions
16,072,629
10,821
16,083,450
378,400
20,089,627
20,468,027
7,745,827
7,597
44,014
7,797,438
7,847,274
23,818,456
-
10,821
7,597
44,014
23,880,888
378,400
7,847,274
20,089,627
-
28,315,301
Reductions
(3,600,462)
(3,600,462)
(15,736,816)
(213)
(15,737,029)
(213,783)
(19,907,823)
(20,121,606)
(4,210,297)
(12,239)
(26,581)
(4,249,117)
(4,298,953)
(19,947,113)
(3,600,462)
(213)
(12,239)
(26,581)
(23,586,608)
(213,783)
(4,298,953)
(19,907,823)
(3,600,462)
(28,021,021)
Balance at
June 30, 1999
.
8,008,175
10,608
8,018,783
1,485,721
6,533,062
8,018,783
9,864,044
7,597
44,014
9,915,655
9,915,655
17,872,219
-
10,608
7,597
44,014
17,934,438
1,485,721
9,915,655
6,533,062
-
17,934,438
138
139
140
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.
Furniture and
Equipment
Construction in
Progress
141
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Function
June 30, 1999
Land
Buildings
Improvements
Furniture and equipment
Construction in progress
Totals
General
Government
$3
3
$8
,659,
,019,
959,
568,
218,
,424,
527
461
348
180
153
669
Culture and
Recreation
26,
10,
2_
20,
60,
324
667
572
788
150
503
,208
,638
,000
,786
,502
,134
Public
Safety
2,150
13,996
,407
,610
519,456
3,384
9
20,060
,902
,400
.775
Public
Works Totals
740,763 32
27
342,009 4
1,573,703 6
20
2,656,475 91
,874,
,683,
,392,
,315,
,378,
,645,
905
709
813
571
055
053
142
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function
Year Ended June 30, 1999
General government
Culture and recreation
Public safety
Public works
Totals
General Fixed
Assets at
July 1. 1998
$ 7,552,224
44,366,173
19,897,059
2.141.255
$73.956.711
Additions
1,327,479
20,751,529
1,741,314
618,247
24.438.569
Deductions
(455,034)
(4,614,568)
(1,577,598)
(103.027)
(6.750.227)
General Fixed
Assets at
June 30. 1999
8,424,669
60,503,134
20,060,775
2.656.475
91.645.053
143
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Source
June 30, 1999
As of June 30, 1986 $27,136,537
Net additions subsequent to June 30, 1986:
General Fund 15,954,887
Community development block grants 2,912,726
Federal grants 509,124
State grants 855,967
Street lighting 327,151
Park development 15,653,194
Public facilities 23,513,664
Redevelopment 4.781.803
Total investments in general fixed assets $91.645.053
144
ANNUAL DEBT SERVICE REQUIREMENTS
The following schedules present principal and interest debt service requirements for the City's
debt.
Housing and
Redevelopment
Bonds
HUD Section
108 Loan
Enclna Joint Powers
Authority Purchase
Agreement
Water District
COPs
State Loan for
Reclaimed Water Golf Course Accrued
Assessmen
145
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements
$15.495.000 - 1993 CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION TAX ALLOCATION BONDS
Fiscal
Year
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
Interest Due
September 1
$ 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
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
Interest
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
Principal Due
September 1
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 Annual
Debt Service
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
Totals $5.941.071 5,560.570 11.501.641 14.460.000 25.961.641
146
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$6.595,000 - 1997 HQSP GROVE CERTIFICATES OF PARTICIPATION
(1988 Refunding)
Fiscal
Year
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
Interest Due
August 1
$131,825
121,978-
111,678
100,608
88,743
76,058
62,418
48,448
33,373
17,273
Interest Due
February 1
121,977
111,677
100,607
88,742
76,057
62,417
48,447
33,372
17,272
-
Total
Interest
253,802
233,655
212,285
189,350
164,800
138,475
110,865
81,820
50,645
17,273
Principal Due
August 1
505,000
515,000
540,000
565,000
590,000
620,000
635,000
670,000
700,000
735,000
Total Annual
Debt Service
758,802
748,655
752,285
754,350
754,800
758,475
745,865
751,820
750,645
752,273
Totals $792.402 660,568 1,452.970 6.075.000 7.527.970
$1.199.950 - HUD SECTION 108 LOAN
Fiscal
Year
1999-2000
2000-01
2001-02
2002-03
2003-04
Interest Due
August 1
$30,770
25,491
19,787
13,621
7,030
Interest Due
February 1
25,491
19,787
13,621
7,030
-
Total
Interest
56,261
45,278
33,408
20,651
7.030
Principal Due
August 1
130,000
140,000
150,000
160,000
169.950
Total Annual
Debt Service
186,261
185,278
183,408
180,651
176,980
Totals 65.929 162,628 749,950 912.578
147
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$7.400.000 - 1997 CARLSBAD MUNICIPAL WATER DISTRICT
CERTIFICATES OF PARTICIPATION (1988 Refunding Project)
Fiscal
Year
1999-2000
2000-01
2001-02
2002-03
2003-04
Totals
Interest Due
November 1
$113,725
93,825
72.505
49,930
25.850
$355.835
interest Due
May 1
113,725
93,825
72,505
49,930
25.850
355.835
Total
Interest
227,450
187,650
145,010
99,860
51.700
711,670
Principal Due
May 1
995,000
1,040,000
1,075,000
1,120,000
1.175.000
5.405.000
Total Annual
Debt Service
1,222,450
1,227,650
1,220,010
1,219,860
1.226.700
6.116.670
$11.080.000 - ENCINA FINANCING JOINT POWERS AUTHORITY
INSTALLMENT PURCHASE AGREEMENT
Fiscal
Year
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
Totals
Interest Due
August 1
$ 254,586
245,786
236,241
225,921
215,278
200,978
188,603
172,791
156,153
139,353
122,816
105,191
86,228
66,241
45,228
23,190
$2.484.584
Interest Due
February 1
245,785
236,240
225,920
215,278
200,978
188,603
172,791
156,153
139,353
122,816
105,191
86,228
66,241
45,228
23,191
2,229.996
Total
Interest
500,371
482,026
462,161
441,199
416,256
389,581
361,394
328,944
295,506
262,169
228,007
191,419
152,469
111,469
68,419
23.190
4.714.580
Principal Due
August 1
440,000
460,000
480,000
495,000
520,000
550,000
575,000
605,000
640,000
675,000
705,000
740,000
780,000
820,000
860,000
905,000
10,250.000
Total Annual
Debt Service
940,371
942,026
942,161
936,199
936,256
939,581
936,394
933,944
935,506
937,169
933,007
931,419
932,469
931,469
928,419
928,190
14.964,580
148
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$2.33 1.489 - CARLSBAD MUNICIPAL WATER DISTRICT
STATE LOAN FOR RECLAIMED WATER PROJECTS
Fiscal
Year
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
Totals
Interest Due
November 30
$ 55,012
51,981
48,862
45,653
42,350
38,952
35,455
31,857
28,155
24,345
20,425
16,391
12,240
7,969
2,680
$462.327
Principal Due
November 30
104,515
107,546
110,665
113,874
117,177
120,575
124,072
127,670
131,372
135,182
139,102
143,136
147,287
151,558
123.219
,896.950
Total Annual
Debt Service
159,527
159,527
159,527
159,527
159,527
159,527
159,527
159,527
159,527
159,527
159,527
159,527
159,527
159,527
125.899
2.359.277
$2.618.908 GOLF COURSE ACCRUED ASSESSMENT
Fiscal
Year
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
Totals
Interest
$ 59,297
52,485
45,212
37,465
29,103
20,173
10,425
$254,160
Principal
154,824
161,614
168,405
177,912
186,060
196,925
206.432
1,252.172
Total Annual
Debt Service
214,121
214,099
213,617
215,377
215,163
217,098
216.857
1.506.332
149
150
03
r-hi—'•
O
BL
COn>or-Kh-'•O13
1
151
CITY OF CARLSBAD
General Expenditures by Function
Last Ten Fiscal Years
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98121
1998-99'2'
Total1"
53,133,603
72,999,324
53,985,119
55,104,390
62,668,276
60,280,103
59,802,924
65,943,032
80,045,280
112,156,205
General
Govt.
4,412,182
5,371,331
5,884,582
6,080,919
5,513,101
5,871,248
5,850,829
6,961,469
6,909,151
6,784,525
Public
Safety
13,019,991
15,242,493
15,989,114
15,734,643
16,351,652
15,915,678
16,850,087
17,410,033
18,631,042
21,927,751
Comm.
Devel.
4,819,544
6,194,277
5,934,690
5,886,636
6,255,252
6,465,977
7,363,194
7,431,539
7,894,536
8,636,634
Comm.
Services
7,814,101
7,921,668
7,473,689
7,176,621
7,548,100
7,459,685
7,590,363
8,390,009
6,672,810
7,541,378
Public
_Works
8,315,586
7,596,750
9,088,351
8,376,678
8,847,328
8,111,572
8,956,757
8,816,767
11,437,101
12,689,683
Capital
Projects
11,104,390
26,665,164
5,639,898
7,192,002
12,933,253
12,159,653
9,654,082
13,556,164
23,693,412
52,106,587
Debt
Service
3,647,809
4,007,641
3,974,795
4,656,891
5,219,590
4,296,290
3,537,612
3,377,051
4,807,228
2,469,647
'"Includes General, Special Revenue, Debt Service and Capital Projects Funds.
(2)Beginning in fiscal year 1997-98, Park Maintenance expenditures are included in Public Works instead of
Community Services.
GENERAL EXPENDITURES BY FUNCTION
1998-99
Debt Service
Capital Projects
46%
General
Government
6%
Public Safety
20%
'Community
Development
„ 8%
Public Works CommunityServices
7%11%
Source: City of Carlsbad Comprehensive Annual Financial Reports
152
TOTAL EXPENDITURES
LAST TEN YEARS
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
SPENDING ON CAPITAL PROJECTS
LAST TEN YEARS
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
153
CITY OF CARLSBAD
General Revenues by Source
Last Ten Fiscal Years
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1 994-95
1995-96
1996-97
1997-98
1998-99
Total"1
557,970,453
77,371,107
58,440,436
58,115,465
62,239,740
69,768,517
74,611,395
98,645,130
122,653,159
145,393,991
Property
Taxes
$12,677,817
14,007,364
15,132,124
15,332,036
13,920,220
13,537,893
13,576,407
14,516,474
15,226,827
17,121,586
Sales
Taxes
$9,342,077
9,426,111
8,723,382
9,167,849
10,840,115
11,399,568
11,542,970
12,495,143
14,817,057
17,129,474
Transient
Occupancy
Taxes
$3,630,662
3,310,043
3,077,595
3,098,793
3,153,084
3,252,270
3,406,917
3,675,472
6,046,092
7,010,249
Other
Taxes
54,114,856
3,691,387
5,153,213
3,408,805
4,124,250
8,434,825
8,621,717
10,824,890
15,290,601
14,508,643
Business
Licenses
5791,715
832,432
910,532
1,071,342
1,093,827
1,245,830
1,491,159
1,510,462
1,603,744
1,737,850
(1) Includes General, Special Revenue, Debt Service and Capital Projects
Funds.
(2) Includes interdepartmental services category added in 1991-92 and
miscellaneous revenues.
160 i
GENERAL REVENUE
LAST TEN YEARS
r-- coCT) Cn CDcn O"j cn cn
enenen
PROPERTY TAX
AND SALES TAX REVENUE
LAST TEN YEARS
Property Tax
Sales Tax
Fiscal Year Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
154
Other
Licenses
54,058,540
3,550,013
3,307,980
3,355,533
3,590,927
3,766,340
4,178,844
5,609,730
6,484,025
3,826,686
Intergovern-
mental
$3,267,054
5,405,074
6,087,138
7,107,385
8,019,308
7,590,323
6,426,262
11,764,760
17,091,140
17,801,614
Charges for
Services
$10,728,326
10,701,989
7,759,224
5,725,597
9,181,814
9,819,230
6,805,386
10,707,653
7,614,902
6,805,147
Fines and
Forfeits
$511,890
515,746
312,984
231,877
231,454
263,411
335,395
317,892
331,318
935,955
Investment
Income
$6,002,986
5,737,513
4,826,292
4,866,361
3,996,127
4,415,975
4,862,050
6,075,188
8,632,261
8,925,565
Contributions
From Property
Owners
$ 402,292
16,515,962
446,813
380,389
344,851
2,148,548
9,359,802
15,450,861
25,861,948
45,763,304
Other12'
$ 2,442,238
3,677,473
2,703,159
4,369,498
3,743,763
3,894,304
4,004,486
5,696,605
3,653,244
3,827,918
TRANSIENT OCCUPANCY TAX
LAST TEN YEARS
0
12_«
"5
Q
*»-O
y>
o
i
CHARGES FOR SERVICES
LAST TEN YEARS
o *— CNJ r-o -^t- i_o LCD r-— oo cncn cn cn cn cn cn cn cn cn cncn en cn cn cn cn cn en cn en
Fiscal Year Fiscal Year
155
CITY OF CARLSBAD
Ratio of General Bonded Debt to Assessed Valuation
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
Net Assessed
Valuation0'
4,850,671,236
5,474,063,206
5,909,991,722
6,066,896,498
5,998,436,686
5,824,971,165
5,841,695,579
6,005,069,504
6,424,230,646
7,391,938,713
Outstanding Total
Principal'2' Valuation
$285,000 0.01
150,000
-
-
-
-
-
-
-
-
Percent of
Per Capita
Debt
$4
2
(2)
(3)
Population'3'
63,126
64,120
65,331
66,481
66,652
66,479
68,010
70,532
73,688
77,550
Net assessed value is stated at 100% of market value. Data
from County of San Diego 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
•P4* -
$3 -
$2 -
$1 -
<tn .
k
^»
XX
•^•:'-\
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
156
CITY OF CARLSBAD
Computation of Legal Debt Margin
June 30, 1999
Net assessed valuation $ 7.391.938.713
Debt limit (15% of 25% of net assessed valuation as adjusted) 277.197.702
Amount of debt applicable to debt limit:
Bonded debt 14,460,000
Certificates of participation 6,075,000
Obligations under capital leases 632.947
Total amount of debt applicable to debt limit 21.167.947
Legal debt margin $ 256.029.755
Percent of debt limit 8%
Source: County of San Diego Office of the Auditor and Controller
157
1998-99 Assessed Valuation:
CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
June 30, 1999
$7,500,561,913 (after deducting $140,759,284 redevelopment increment
valuation)
DIRECT AND OVERLAPPING BONDED DEBT:
San Diego County Water Authority
Metropolitan Water District
Carlsbad Unified School District
Carlsbad Unified School District Lease Tax Obligations
Carlsbad Unified School District Community Facilities Dist. No. 1
Encinitas Union School District
Encinitas Union School District Lease Tax Obligations
San Marcos Unified School Dist. School Facilities Improvement Dist.
San Marcos Unified School Dist. Community Facilities Dist. No. 5
San Dieguito Union High School Dist. Community Facilities Dist. No. 1
Olivenhain Municipal Water District, I.D. No. 1
Olivenhain Municipal Water Dist., Assessment Dist. No. 96-1
City of Carlsbad 1915 Act Bonds
TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT0'
DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego County Supt. of Schools General Fund Obligations
Mira Costa Community College District Certificates of Participation
Carlsbad Unified School District General Fund Obligations
San Marcos Unified School Dist. Certificates of Participation
Encinitas Union School Dist. Certificates of Participation
Other School District Certificates of Participation
City of Carlsbad General Fund Obligations
TOTAL DIRECT AND OVERLAPPING GF OBLIGATION DEBT:
GROSS COMBINED TOTAL DEBT:
(1) Excludes tax and revenue anticipation notes, revenue, mortgage
revenue, and tax allocation bonds and non-bonded capital lease obligations
Ratios to Assessed Valuation:
Total Gross Overlapping Tax and Assessment Debt.
Ratios to Adjusted Assessed Valuation:
Combined Direct Debt ($6,075,000)
Gross Combined Total Debt
%
Applicable
5.285 %
0.884
97.688
97.688
100.000
23.657
23.657
26.918
100.000
42.715
31.648
20.302
100.000
5.088 %
5.088
5.088
24.925
97.688
23.978
23.657
Various
100.000
Debt
June 30. 1999
$ 398,753
5,109,829
25,886,046
5,387,493
12,105,000
6,953,696
1,285,758
5,804,333
12,950,000
19,076,519
79,120
4,519,225
47,800,000
$ 147,355,772
$ 26,496,123
18,989,434
115,370
1,815,786
11,190,161
555,091
1,567,276
203,744
6,075,000
$ 67,007,985
$ 214,363,757
1.96%
0.08%
2.86%
SHARE OF AUTHORIZED & UNSOLD GENERAL OBLIGATION BONDS:
Carlsbad Municipal Water District, I.D. No. 1
Carlsbad Municipal Water District, I.D. No. 3
Source: California Municipal Statistics, Inc.
$99,221
$200,000
158
Ratio of Annual Debt Service for
General Bonded Debt to Total Governmental Expenditures
Last Ten Fiscal Years
Fiscal
Year Principal
1989-90 $135,000
1990-91 135,000
1991-92 150,000
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
(1) Debt service requirement on General Obligation Bonds comprised of 1962 Sewer Bonds
Series B and C and 1966 Library Bonds. Excludes debt service for the Assessment
District and the Building and Parking Authorities.
(2) Includes General, Special Revenue, Debt Service and Capital Project funds.
Interest
$13,728
8,652
3,908
-
-
-
-
-
-
-
Total
Debt
Service'"
$148,728
143,652
153,908
-
-
-
-
-
-
-
Total
Governmental
Expenditures'2'
$53,133,603
72,999,324
53,985,119
55,104,390
62,668,276
60,280,103
59,802,924
65,943,032
80,045,280
112,045,585
Ratio of Debt
Service to
Governmental
Expenditures
0.3
0.2
0.3
-
-
-
-
-
-
-
RATIO OF DEBT SERVICE TO GENERAL EXPENDITURES
LAST TEN YEARS
0.0%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
159
CITY OF CARLSBAD
Water Enterprise
Revenue Bond Coverage
Last Ten Fiscal Years
Fiscal
_Year
1989-90
1990-91'3'
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
Gross
Revenue1"
$ 2,001,832
11,398,343
11,504,798
12,267,854
15,188,913
15,912,020
17,147,790
18,911,511
18,356,555
19,942,226
<" Tnr.lnrles
Direct
Operating
Expenses121
$ 1,415,542
9,172,478
9,520,564
11,421,571
12,286,557
12,690,114
13,998,346
14,692,531
14,583,879
16,732,975
; oneratinp and i
Net Revenue
Available
For Debt
Service
$ 586,290
2,225,865
1,984,234
846,283
2,902,356
3,221,906
3,149,444
4,218,980
3,772,672
3,209,251
non-nneratinp rt
Principal
$ 160,000
775,000
685,000
730,000
775,000
825,000
880,000
1,040,000
955,000
995,000
ivennes.
Debt Service Requirements
Interest Total Coverage
$ 12,718
1,088,386
842,538
798,696
751,248
700,098
644,822
494,954
264,695
227,450
$ 172,718
1,863,386
1,527,538
1,528,696
1,526,248
1,525,098
1,524,822
1,534,954
1,219,695
1,222,450
3.39
1.19
1.29
0.55
1.90
2.11
2.07
2.75
3.09
2.63
(2)
(3)
Total operating expenses including depreciation and amortization.
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
160
WATER ENTERPRISE GROSS REVENUE
VS.
DIRECT OPERATING EXPENSES
LAST TEN YEARS
$20 -C
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
m GROSS REVENUE
• OPERATING EXPENSES
WATER ENTERPRISE
REVENUE AVAILABLE FOR DEBT SERVICE
LAST TEN YEARS
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
161
CITY OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
iscal Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
Secured Property
$4,813,718,827
5,406,790,697
5,823,039,810
5,948,358,026
5,858,987,695
5,673,354,814
5,676,061,219
5,811,751,594
6,232,883,670
7,154,426,710
Unsecured Property
$147,696,674
182,042,779
205,094,661
242,255,869
270,120,519
288,206,831
310,402,764
348,706,124
352,854,173
424,962,226
Less Property
Exemptions
$23,581,665
25,387,503
27,414,635
31,586,277
36,151,898
40,417,338
46,279,594
55,138,448
57,681,797
78,827,023
(1) Does not include redevelopment incremental valuation or state-
assessed unitary values.
Source: County of San Diego Office of the Auditor and Controller
162
Total
Assessed Valuation'"
$4,937,833,836
5,563,445,973
6,000,719,836
6,159,027,618
6,092,956,316
5,921,144,307
5,940,184,389
6,105,319,270
6,528,056,046
7,500,561,913
Homeowner's
Exemptions
$87,162,600
89,382,767
90,728,114
92,131,120
94,519,630
96,173,142
98,488,810
100,249,766
103,825,400
108,623,200
Net Assessed
Valuation
$4,850,671,236
5,474,063,206
5,909,991,722
6,066,896,498
5,998,436,686
5,824,971,165
5,841,695,579
6,005,069,504
6,424,230,646
7,391,938,713
Percentage
Change
15.4
12.9
8.0
2.7
(1.1)
(2.9)
0.3
2.8
7.0
15.1
NET TAXABLE VALUE
LAST TEN YEARS
Dollars in billions
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
163
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
Building
Permit
Revenue
$1,029,750
857,717
219,445
234,063
365,571
644,131
917,788
1,262,177
2,094,523
2,524,063
Percent
Change
52.6
(16.7)
(74.4)
6.7
56.1
76.2
42.4
37.6
65.9
20.5
Estimated
Valuation
$169,746,343
163,340,462
42,351,906
49,809,414
71,057,243
145,344,099
162,116,427
305,247,426
479,909,805
588,527,417
Business
License
Revenue
$791,715
832,432
910,532
1,071,342
1,093,827
1,245,830
1,491,159
1,510,462
1,603,744
1,737,850
Percent
Change
13.6
5.1
9.4
17.7
2.1
13.9
19.7
1.3
6.2
8.4
Construction
Deposits
Not Available
Not Available
$4,663,219
5,224,780
4,474,153
5,667,913
5,239,235
6,822,684
5,857,013
5,779,355
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
Dollars in millions
$600 -.
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
164
CITY OF CARLSBAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
Total
Current Lew
$ 12,600,253
13,931,230
14,932,937
13,990,844
12,373,782
11,977,833
11,891,199
12,227,583
13,227,486
15,115,611
Total Current
Collections
$ 11,816,888
12,986,628
13,795,525
12,776,232
11,318,017
10,843,322
11,164,134
11,551,981
12,636,654
14,421,616
% of Levy
Collected
93.8
93.2
92.4
91.3
91.5
90.5
93.9
94.5
95.5
95.4
PROPERTY TAX LEVIES & COLLECTIONS
LAST TEN FISCAL YEARS
Dollars in millions
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Fiscal Year
DLEVIES •COLLECTIONS
Source. County of San Diego Office of the Auditor and Controller
165
CITY OF CARLSBAD
Demographic Statistics
Last Ten Fiscal Years
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000 (Estimate)
2005 (Estimate)
2020 (Estimate)
Square
Miles
42.2
42.2
42.2
42.2
42.2
42.2
42.2
42.2
42.2
42.2
Population01
63,126
64,120
65,331
66,481
66,652
66,479
68,010
70,532
73,688
77,550
81,206(3)
93,796(3)
113,173(3)
Population
Percent
Change
1.8
1.6
1.9
1.8
0.9
(0.2)
2.3
3.7
4.5
5.2
County
Population'2'
2,498,016
2,539,583
2,583,470
2,614,222
2,638,511
2,658,584
2,682,093
2,724,437
2,794,785
2,853,258
3,004,434(4)
3,125,900(4)
3,826,900(4)
City
Population
Percent
of County
2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.6
2.6
2.7
2.7
3.0
3.0
(1) Source - State Department of Finance.
(2) Source - County Data Base, San Diego County.
(3) Source - based on City of Carlsbad projected residential construction
estimates in 1999-00 Capital Improvement Program.
(4) Source - San Diego Association of Governments Series VIII growth forecast.
80,000 -f
70,000 -
60,000 -'
50,000 •
40,000 -
30,000 -
20,000 -
10,000 -
POPULATION
LAST TEN YEARS
_xa
—
"*,
t
1
-
—
"<
-*-i
•*
~•">
1
k
m
t *-
m
*
-
-
s.
-
y
OT-cNrOTtm<or^co0>0)050)0)0)05 0)0)0) 050)0)0)0)0)0) 050)0)0)
Fiscal Year
166
CITY OF CARLSBAD
Principal Employers
1998-1999
FIRM PRODUCT/SERVICE EMPLOYEES
MANUFACTURING
Callaway Golf Company, Inc.
Mallinckrodt
West Coast Composite
Cobra Golf, Inc., II
Taylor Made Golf Company, Inc.
Ashworth, Inc.
ViaSat, Inc.
Palomar Products
Asymtek
No Fear
Syntron Bioresearch, Inc.
The Upper Deck
Schumacher Company
Artecon, Inc.
Beckman Coulter
Invitrogen
Melles Griot Laser Products
Golf Equipment
Respiratory Products
Golf Equipment
Golf Equipment
Golf Equipment
Golf Apparel
Communications Equipment
Integrated Circuits
Fluid Dispensing Systems
Clothing
Test Kits & Diagnostics
Sports Trading Cards
Chemical Purification Systems
Computers
Medical Diagnostic Reagent
Research Supplies
Lasers
2000
1000
700
675
450
394
350
300
280
250
250
250
248
200
200
200
200
NON-MANUFA CTURING
Plaza Camino Real
Four Seasons Resort-Aviara
Legoland California
La Costa Resort & Spa
City of Carlsbad
Carlsbad Company Stores
Carlsbad Unified School District
Gemological Institute of America
SOMC Group, Inc.
Farmers Insurance
ISIS Pharmaceuticals
San Diego Gas & Electric Company
COSTCO Wholesale
PSB Lending Corporation
Toyota Carlsbad/Lexus
Finn Fund USA
Shopping Mall
Resort
Family Theme Park
Hotel/Health Spa
Municipal Government
Outlet Shopping Center
Education
Gem School
Software Distributor
Insurance Services
Research and Development
Power Generation
Grocer/Wholesale/Retail
Service Real Estate Loans
Car Dealership
Mortgage Banking
3000
1100
1100
950
775
750
750
466
380
350
350
325
285
250
250
200
Source: City of Carlsbad Chamber of Commerce
167
CITY OF CARLSBAD
Principal Taxpayers
1998-99
$ 1,158,479,667
Percentage of Net
Assessed
Taxpayer
San Diego Gas & Electric Co.
La Costa Hotel & Spa Corp.
Aviara Resort Associates
Legoland California, Inc.
Callaway Golf Company
Real Estate Collateral
Prentiss Properties
Villages of La Costa
Air Products & Chemicals
Puritan-Bennett Corporation
Standard Pacific Corporation
Type of Business
Power Generation
Hotel & Health Spa
Resort & Golf Course
Family Theme Park
Manufacturer
Real Estate
Real Estate
Real Estate
Manufacturer
Medical Equipment
General Contractor
Valuation
$249,463,675
182,345,611
144,818,525
135,708,865
108,670,798
103,992,732
60,715,971
51,102,000
46,124,487
39,013,804
36,523,199
Valuation
3.4
2.5
2.0
1.8
1.5
1.4
0.8
0.7
0.6
0.5
0.5
15.7%
'Net assessed valuation for 1998-99:$7,391,938,713
Source: County of San Diego Office of the Auditor and Controller
168
CITY OF CARLSBAD
Top 30 Sales Tax Generators
1998-1999
Firm
Air Products & Chemicals
Aviara Resort Associates
Bob Baker Cadillac
Bob Baker Jeep/Eagle/Hyundai
Bob Baker Volkswagen
Body Wise International
Carlsbad Mitsubishi
Carlsbad Volvo
Discover Infiniti Carlsbad
Gascard Incorporated
Hoehn Honda
Hoehn Oldsmobile
J C Penney Company
Jim Finney Pontiac
La Costa Hotel & Spa
Legoland California
Lexus Carlsbad
Macy's Department Stores
North County Lincoln/Mercury
Price Club
Reliable Wholesale Lumber
Robinsons-May Department Stores
Rorick Buick
Sears Roebuck & Company
The Good Guys
Toyota Carlsbad
Vince Dixon Ford
Vons Grocery Company
Weseloh Chevrolet
Worthington Dodge
Product/Service
Chemical Products
Hotel Food Sales
Car Dealership
Car Dealership
Car Dealership
Distributor/Health Products
Car Dealership
Car Dealership
Car Dealership
Light Industry
Car Dealership
Car Dealership
Department Store
Car Dealership
Hotel & Health Spa
Family Theme Park
Car Dealership
Department Store
Car Dealership
General Stores
Building Materials
Department Store
Car Dealership
Department Store
Electronic Equipment
Car Dealership
Car Dealership
Supermarket
Car Dealership
Car Dealership
Source: Municipal Resource Consultants (MRC)
169
CITY OF CARLSBAD
Miscellaneous Statistical Information
1998-99
Date of Incorporation
Type of City
Form of Government
Area
Population (CA Dept of Finance Report 1/1/99)
Net Assessed Valuation
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
Number of Water Connections
Average Daily Consumption
Miles of Lines and Mains
Miles of Sewers
Recreation and Culture:
Number of Parks (Improved Community Parks & Special Use
Areas)
Area of Parks (Improved Community Parks & Special Use
Areas)
Number of Pools
Number of Libraries
Number of Volumes
Total Number of Authorized Full Time City Employees
July 16, 1952
General Law
Council/Manager
42.19 sq. miles
77,550
$7,391,938,713
5,597
244
6
72
1
93
72,000
20,100
14.9 million gallons
350
145
34
197 acres
1
2
236,089
586
Source: City of Carlsbad Finance Department
170