HomeMy WebLinkAbout; ; 1999-2000 CAFR; 2000-06-30CITY OF CARLSBAD
CALIFORNIA
Comprehensive
Annual
Financial Report
For the Fiscal Year Ended June 30, 2000
The following pictures appear on the front cover representing Carlsbad in the year 2000:
Top Left - Carlsbad Flower Fields.
Top Right - Legoland, California (opened March 1999)
Bottom Left - New Carlsbad Library (opened September 1999)
Bottom Right - View Park
Photographer: Bill Richmond
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30, 2000
1635 Faraday Avenue, Carlsbad, CA 92008
760-602-2430
Prepared by the Finance Department
Internet Address: www.ci.carlsbad.ca,us
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 2000
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 36
Certificate of Award for Outstanding Financial Reporting,
California Municipal Finance Officers 37
Location Map 38
List of City Officials 39
Organization Chart 40
Boards, Commissions and Committees 41
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, 2000
TABLE OF CONTENTS (CONTINUED)
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
Supplemental Data:
Governmental Funds:
General Fund:
• Schedule of Revenues - Budget and Actual (Budgetary Basis) 92
• Schedule of Expenditures - Budget and Actual (Budgetary Basis) 93
• Comparative Schedule of Revenues 94
• Comparative Schedule of Expenditures 95
Special Revenue Funds:
• Combining Balance Sheet 98
• Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 100
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 2000
TABLE OF CONTENTS (CONTINUED)
Supplemental Data (continued):
• Combining Schedule of Revenues and Expenditures - Budget and
Actual (Budgetary Basis) 102
Debt Service Funds:
• Combining Balance Sheet 112
• Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 113
• Redevelopment Bonds Debt Service Fund - Budget and Actual
(Budgetary Basis) 114
Capital Projects Funds:
• Combining Balance Sheet 118
• Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 120
Proprietary Funds:
Enterprise Funds:
• Combining Balance Sheet 124
• Combining Statement of Revenues, Expenses and Changes in
Retained Earnings 125
• Combining Statement of Cash Flows 126
in
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 2000
TABLE OF CONTENTS (CONTINUED)
Supplemental Data (continued):
Internal Service Funds:
• Combining Balance Sheet 130
• Combining Statement of Revenues, Expenses and Changes in
Retained Earnings 131
• Combining Statement of Cash Flows 132
Fiduciary Funds:
Agency Funds:
• Combining Statement of Changes in Assets and Liabilities 136
Account Groups:
General Fixed Asset Account Group:
• Schedule of General Fixed Assets by Function 140
• Schedule of Changes in General Fixed Assets by Function 141
• Schedule of General Fixed Assets by Source 142
Schedule of Annual Debt Service Requirements 144
IV
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 2000
TABLE OF CONTENTS (CONTINUED)
Page
STATISTICAL SECTION:
(Not covered by Independent Auditors' Report)
• General Expenditures by Function, Last Ten Fiscal Years 150
• General Revenues by Source, Last Ten Fiscal Years 152
• Ratio of General Bonded Debt to Assessed Valuation and Net
Bonded Debt Per Capita, Last Ten Fiscal Years 154
• Computation of Legal Debt Margin 155
• Schedule of Direct and Overlapping Bonded Debt 156
• Ratio of Annual Debt Service for General Bonded Debt to
Total Governmental Expenditures, Last Ten Fiscal Years 157
• Water Enterprise - Revenue Bond Coverage,
Last Ten Fiscal Years 158
• Schedule of Assessed Valuation, Last Ten Fiscal Years 160
• Construction and Business Activity, Last Ten Fiscal Years 162
• Property Tax Levies and Collections, Last Ten Fiscal Years 163
• Demographic Statistics, Last Ten Fiscal Years 164
• Principal Employers, 1999-2000 165
• Principal Taxpayers, 1999-2000 166
• Top 30 Sales Tax Generators, 1999-2000 167
• Miscellaneous Statistical Information, 1999-2000 168
Carlsbad City Council
*
2000
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
• 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,
• 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,
• leadership role in local and regional planning issues actively involves confronting governmental
issues at the local, state and national levels, and
• 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.
Carlsbad Efficiently and Effectively
• delivers top-quality public services,
• manages environmental concerns proactively, including:
o open space
o water quality/conservation
o beach erosion
o air quality
o resource conservation and waste reduction
o wildlife habitats
• has a safe and efficient integrated transportation system,
• maintains Citywide "small town" community spirit, and
• has a community where continuous and life-long learning are supported and embraced for people of
all ages.
October 6, 2000
Honorable Mayor, City Council,
and City Manager
CITY OF CARLSBAD
Carlsbad, California
1999-2000 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL
We are pleased to present the 1999-2000 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 and Associates, L. L. P. 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,
2000. 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
Although the "village" dates back more
than 100 years, Carlsbad incorporated
in 1952 as a General Law city. 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.
The City covers about 42 square miles and has a population of 82,030, with an expected build-
out population of 120,000 residents. Industries in the area include a major regional shopping
center, a specialty outlet center, 17 auto dealers, 30 hotels offering over 3,100 rooms for tourist
lodging, high technology, 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, in conjunction with the Senior
Volunteer Patrol, offers a variety of services to residents and visitors of Carlsbad. Whether a
regular visit is made to a homebound citizen or a vacation security consultation is made to
assist residents on security issues in preparation for their vacation, the Police Department is
focused on customer service. 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 foster 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 483 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
and sponsors annual 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 $247,000 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 through
both residential and commercial development. However, 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 as shown in the following graph.
This has enabled the City the means to consistently provide a high service level for the
residents of Carlsbad.
140.0% T--«
120.0% -•
100.0% -•
80.0% - •
a>
a 60.0% +*c.
g 40.0% --a>a.
20.0% --
0.0%
Percentage Increase During the Past Ten Years
Population
Net Assessed
Values
Sales Tax
Revenues
Transient
Occupancy Taxes
2000 Strategic Goals and Budget Development
The budget process for the City of
Carlsbad begins in January each
year with a review and update of
the City Council's five-year vision
statements (see page 1). Through
the vision statements, Council
continually defines and clarifies
their vision of Carlsbad. The
strategic goals for the City are
developed next. The goals further
define the methods used to
achieve the vision and call out
areas in which Council would like
to place special emphasis during
the year. Once these are
developed, staff develops
operational goals based on
Council's direction. These
operational goals are the basis for
the development of the annual
budget. 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
2000 Strategic Goals
Ensure the effective and efficient delivery of top-
quality services to our Community.
Develop and implement proactive 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 for all segments of
the Community.
Significant Events and Accomplishments
During 1999-2000, 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.
Carlsbad Libraries - Construction was completed on the City's new 64,000 square foot library
in the Southwest Quadrant of Carlsbad. This new library combined with the existing Cole
Library is projected to be able to service the needs of up to 100,000 residents. The building,
which opened to the public in September 1999, includes all public service areas of a full-service
library as well as staff administrative offices.
Once the South Carlsbad Library was opened to the public, the Cole Library was closed down
to renovate for safety improvements, reallocation of staff and public meeting spaces,
mechanical upgrades, and improvements to building finishes. The Cole Library is once again
open for business.
Habitat Management Planning Efforts - The Habitat Management Plan
(HMP) is a City-sponsored plan to address rare, sensitive, threatened, and
endangered species in Carlsbad. The plan is intended to designate
wildlife preserve areas that will be set-aside in permanent open space as
habitat for these species. Based on preservation of these habitat areas,
the City anticipates receiving Citywide, federal and state permits to allow
development projects outside of the designated preserve areas to impact
sensitive species, with appropriate mitigation. Such a plan would protect
the City from the disruptive effects of future listings of species.
The City has been working on this plan for the past nine years, and at this
point, the plan has only been approved by the City Council. Additionally,
the plan has been submitted to the U.S. Fish and Wildlife Service and the California
Department of Fish and Game. However, these organizations are not able to approve the plan
until the Coastal Commission reviews the plan. It is anticipated that the Coastal Commission
will review the plan within the next six to twelve months.
South Carlsbad Redevelopment Area - The South Carlsbad Redevelopment Area, the City's
second redevelopment area, was formed during the 1999-2000 fiscal year. This area is
bounded by Agua Hedionda Lagoon on the north, the Pacific Ocean on the west, Interstate 5
and related properties on the east, and the City limits on the south. The purpose of the
formation of this new redevelopment area includes the elimination and alleviation of blight found
to exist within the project area, increase the supply of affordable housing and improving the
physical, social economic well-being of residents in the project area through redevelopment
efforts.
Focus on Customer Service - The City has placed an emphasis on excellent customer
service, as evidenced by one of the City Council's goals being, "Ensure the effective and
efficient delivery of top-quality services to our Community." As a result of this focus on
customer service, the following new or modified services and facilities, have been created in
Carlsbad:
The Faraday Center - a new facility in
the industrial corridor of the City,
designed to provide one-stop service
for developers and citizens. This
center houses administrative services,
community development and some of
the public safety and public works
departments.
Sunday Library/Art Gallery Hours -
recently, the City has opened up both libraries to the public on Sundays. The South
Carlsbad Library, the Cole Library and the William D. Cannon Art Gallery are all open
seven days a week, with hours of 1 to 5 p.m. on Sundays.
Extended Pool Hours - pool hours at the City's public pool were increased during the
year to provide more increased access to the facility. Additional weekday and
weekend hours were added, as well as the availability of unused lanes during regularly
scheduled reserved time by other organizations.
The Carlsbad Academy - the Carlsbad Academy was developed to provide the
employees of the City with the technical training needed to perform their jobs, and
enhance the delivery of top-quality service to our customers. This program offers
employees training ranging from Microsoft Office programs, to the City's many in-
house computer programs.
Experience Carlsbad - "Experience Carlsbad" is a program that was developed to
acclimate new employees to the culture of Carlsbad. Included in the training program
are segments on the City's values and mission, benefits orientation, tour of the City, a
conversation with City leaders, customer service workshops and a follow-up program.
The City's Website - The City's new website debuted this year. It is a comprehensive
guide to the many different services the City of Carlsbad provides for its citizens, its
visitors and the general public. Some of the features added to the website during the
past fiscal year were employment opportunity listings, Council and Commission
agendas, public hearing notices, departmental calendars of events, current bid and
quote lists, bid results, the library's catalog, and the ability to reserve meeting rooms at
the South Carlsbad Library.
Construction of Capital Projects - The City's aggressive Capital Improvement Program
continued in 1999-2000 with an outlay of approximately $39.5 million. As development
continues, the need for development-related services and new facilities is also growing.
Capital projects are prioritized 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.
Some of the major capital projects started or completed in 1999-2000 include the South
Carlsbad Library, the Cole Library remodel, acquisition of Pine School, completion of the
Faraday Center, widening of La Costa Avenue, 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 various waterlines, and the
continuing pavement management program.
Affordable Housing - On September 30, 1999, the Carlsbad Redevelopment Agency
purchased the 75-unit Tyler Court Senior Apartments. The $5 million purchase has resulted in
providing permanent affordable housing for extremely low and very low-income senior citizens
in Carlsbad. Monthly rents for the one and two bedroom units range from $299 to $630.
In addition, during 1999-2000, construction was begun or completed on over 385 new
affordable housing units in the City. Construction was completed on the Cherry Tree Walk town
home development. The two and three bedroom homes were purchased by low-income
Carlsbad households earning less than 80% of the San Diego County Area Median Income
(AMI) (i.e., a family of four earning less than $43,000
per year). Construction was also completed on the
Rancho Carrillo Apartments. This project is
affordable to very low and low-income households
earning between 50% and 80% of AMI. In addition,
construction began on the Laurel Tree Apartments
and the Poinsettia Station Apartments. Laurel Tree
consists of two, three and four bedroom units
affordable to low-income households earning 60% or
less of AMI (i.e., a family of four earning less than
$32,000 per year) and rents will range from $574 for
one-bedroom units to $775 for a three-bedroom unit.
Street Tree and Street and Sidewalk Committees - committees were formed during the year
to address street tree and sidewalk issues which arose during the year.
The Street Tree Committee was comprised of 15 representatives from the community, with City
staff serving as a liaison between the committee and the City Council, in addition to helping
direct the group. The committee recommended several changes to the Street Tree Policy,
which the Council subsequently adopted. Implementation is underway.
The Street and Sidewalk Committee was also comprised of 15 representatives from the
community, with City staff once again serving as a liaison between the committee and the City
Council, in addition to assisting in the direction of the group. The City Council directed the team
to review all streets in the northwest quadrant of the City and propose a process for developing
those streets (curbs, gutters and sidewalks). The committee created new policies that deal with
the development of alternative street designs. These policies, which the Council subsequently
adopted, are currently being implemented.
Infrastructure Replacement - during the 1999-2000 fiscal year, two
million dollars was transferred from the General fund to an
Infrastructure Replacement fund. This fund is "seed" money to begin a
new program. The program will set aside funds on an on-going basis
for the replacement of the base infrastructure of the City: everything
from streets and sidewalks to public buildings. The City is relatively
new, so we have not yet experienced the significant costs of replacing
infrastructure as it ages. We are just beginning to see major repairs
needed on some of our older roads. These costs will increase as the
City grows older. The Infrastructure Replacement fund will give the
Council the financial ability to deal with these significant replacement expenses as they occur.
Total City Operations
In 1999-2000, 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 citizens have also grown, enabling
Carlsbad to remain a model city, providing effective and efficient top-quality services.
Carlsbad's revenue trends seem to mirror the San
Diego region, in general. The San Diego County
economic indicators are traced by the University of
San Diego's School of Business Administration on a
monthly basis. The trend of the index from 1997
through June 2000 is reflected in the adjacent chart.
For 1999-2000, total revenues collected by the City for
all services totaled over $156 million. General fund
revenues grew by 9.5% to $69.4 million. The healthy
economy, coupled with continued low inflation, has
kept consumer confidence high, allowing for increased
retail sales and tourism. The Carlsbad Company
Stores, a specialty outlet center, opened in late 1997
with approximately 45 shops, has since expanded to
well over 60 shops and restaurants that contribute
over $700,000 annually to the City's sales tax receipts. Legoland, a family theme park located
in Carlsbad, is also planning to expand in the near future. Legoland contributes to the City's
sales tax base as well as stimulating the development of new hotels in the area. This increase
in tourism can be seen in the increased sales taxes as well as the highest amount of transient
occupancy tax (TOT) ever collected by the City.
Not only are sales taxes and TOT up for the year, property taxes have also been on the rise.
The demand for housing has grown as more industries move into the City's highly desirable
industrial corridor. Residential development has had a tough time keeping up with the fast
Index of Leading Economic Indicators
San Diego Count*. 1997 -2000
/*%7
*'7.^\ s,.^.....\ r.
t
jt . . .
'Tf
•97 Jtt JM JOO
paced population growth throughout San Diego County. This influx of citizens, as well as the
strong resale market, has pushed the assessed values in Carlsbad up over 18% during the past
year. This translated into higher property taxes for the City.
Despite the strong demand for housing, receipts from many of the pre-construction phases of
development slowed down this year. The number of large master plans working their way
through the development process has dwindled due, in part, to less land being available for
development. As the City came out of the recession in the mid 1990's, there was a large
backlog of projects ready to process. Most of those are under construction now resulting in
high building permit revenues and lower planning, engineering and other similar revenues.
Most significant General fund revenues tend to follow the Index of Economic Indicators,
however, other City funds also experienced higher revenues during the year. Enterprise and
Internal Service funds showed increases predominantly due to increased water sales and
higher information technology costs. The City's focus on keeping up with technology created
the need to upgrade software and hardware systems, reflected in the higher charges.
The revenues collected by the City during 1999-2000 allowed the staff of over 720 full and
hourly full-time equivalent employees to provide a complete range of City services to the 82,030
residents and many businesses in Carlsbad. Spending on all City programs totaled $139.1
million, a decrease of $3.7 million from 1998-1999. While the majority of programs within the
City saw increased spending, spending on capital projects slowed down as many of the projects
on the horizon were in the planning stages during the year. Projected expenditures on capital
projects in the next five years exceed $186.6 million. Other factors contributing to the growth in
expenditures were additional programs and services offered through General fund financing.
These programs addressed new City facilities, health and safety issues, new technologies and
the City's growth.
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, 2000:
Revenue from All Fund Types
(in thousands)
Category
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Enterprise Funds01
Internal Service Funds11'
TOTAL REVENUES
1999-2000
$69,363
11,688
1,484
32,717
31,505
9,663
$156,420
1998-1999
$ 63,323
15,025
1,335
65,712
28,822
8,986
$183,203
1999-2000 over
(under) 1998-1999
$ 6,040
(3,337)
149
(32,995)
2,683
677
$(26,783)
Percent
Change
9.5 %
(22.2)
11.2
(50.2)
9.3
7.5
(14.6)%
(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 Funds01
Internal Service Funds'1'
TOTAL EXPENDITURES
1999-2000
$52,928
9,737
2,461
40,862
24,117
9,301
$139,406
1998-1999
$49,585
6,770
2,485
53,316
22,591
8,015
$142,762
1999-2000 over
(under) 1998-1999
$ 3,343
2,967
(24)
(12,454)
1,526
1,286
$ (3,356)
Percent
Change
6.7 %
43.8
(1.0)
(23.4)
6.8
16.1
(2.4)%
(1) Includes operating and non-operating expenses
General Fund
GENERAL FUND
1991 TO 2000
(in millions)
The City's General fund is used to
record all revenues and expendi-
tures 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.
General fund revenues provide a representative picture of the local economy. These revenues
are of particular interest as they fund basic City services such as police, fire, library, street and
park maintenance and recreation programs. Once again, in 1999-2000, the City of Carlsbad
experienced a period of solid economic growth, which is anticipated to continue for at least the
next year. Along with the population increases have also come increases in the resources
which will allow the quality of life in Carlsbad to be maintained. Strong growth can be seen in all
of the City's tax revenues: property taxes, sales taxes, transient occupancy taxes, franchise
taxes and business license tax. Additional growth was also seen in vehicle license fees,
income from property and investments and interdepartmental charges. However, the City did
see a decrease in development-related revenues and miscellaneous other revenues, but these
declines were more than offset by the impacts of a strengthening economy.
11
General Fund Revenues
(in thousands)
Category
Taxes
Intergovernmental
Licenses and Permits
Charges for Services
Fines & Forfeitures
Income from Property
and Investments
Interdepartmental
Other
TOTAL
7999-2000
$50,037
4,903
3,321
5,499
771
2,227
2,007
598
$69,363
1998-1999
$43,109
3,881
3,827
6,586
804
1,992
1,934
1,190
$63,323
1999-2000 over
(under) 1998-1999
$6,928
1,022
(506)
(1,087)
(33)
235
73
(592)
$6,040
Percent
Change
16.1%
26.3
(13.2)
(16.5)
(4.1)
11.8
3.8
(49.8)
9.5%
The chart above shows that Carlsbad's General fund revenues grew by $6 million, or 9.5%,
from the previous fiscal year. General fund revenues were originally budgeted at $64.4 million,
revised upward to $69.4 million, and at June 30, 2000 receipts came in right on target.
Taxes
Sales Taxes ($19.5 Million) - For the year, sales tax receipts finished up 14% over
last year's collections. This was due to the continuation of a healthy
economy, high consumer confidence, the expansion of the Carlsbad
Company Stores in the fall of 1999, and the first full year of sales tax
revenue from Legoland. The leading sales tax generators by economic
Up
14%
segment were new auto sales, department stores, and restaurants.
In the upcoming fiscal year, sales taxes are once again projected to grow, but at a much slower
pace. It is projected that the base amount will increase by 5.2%, plus additional amounts for
new retail sites locating to the City, and a full year's worth of sales tax revenue from the
expansion of the Carlsbad Company Stores.
FOR
SALE UP
18%
Property Taxes ($16.8 Million) - The City wrapped up the year with
$16.8 million in property tax revenues; an increase of 18% over the
prior year. According to the County of San Diego Assessor's Office,
assessed values in Carlsbad for fiscal year 1999-2000 increased by
19.7%. This was the largest percent increase of any city in the
county. This increase in assessed values was due to new construction within the
City as well as the reassessment of property that changed ownership during the previous year.
Under Proposition 13, assessed values of property can only increase by up to 2% per year.
However, when property changes ownership, the assessed value increases to the full market
value. Therefore, the recent surges in property resales in Carlsbad significantly affected
property tax revenues for the City.
12
According to the most recent County of San Diego Assessor's Office reports, assessed values
in Carlsbad have increased another 18% for fiscal year 2000-2001. Once again, this was the
largest increase of any city in San Diego County. A factor in this increase was the sale, and
subsequent revaluation, of the Encina power plant which added over $250 million to the
assessed values.
Transient Occupancy Tax ($8.3 Million) - Transient occupancy taxes (TOT) were $1.3 million
more in fiscal year 2000 than the previous fiscal year. This increase in
TOT was based on two factors. First, according to PKF Consulting, the
average room rates for coastal North County increased over the past
twelve months. Second, and a bigger factor contributing to the increase
in TOT revenues, included the opening of the Grand Pacific Palisades
Resort and Hotel in March 1999 and the opening of the Residence Inn in July 1999.
Franchise Taxes ($2.6 Million) - Franchise tax revenues for the year reflect a 33% increase
over the previous year. Franchise fees come from public utility sources
such as SDG&E, trash collection franchises, and cable franchises
conducting business within City limits. The majority of this year's
increase is due to increased fees paid by San Diego Gas and Electric
Up
19%
UP
33%
(SDG&E). As a result of the change in ownership of the power plant, SDG&E is paying
franchise fees on a larger portion of their transmission lines.
Business License Tax ($1.9 Million) - Business license revenues totaled $1.9 million for the
year; 7% ahead of last fiscal year, and slightly higher than projections
UP for the year. Business licenses issued totaled 6,214, compared to
5,616 issued as of the end of June 1999.7%
In an effort to create equity amongst the business community, as well as bringing
businesses into compliance with the City's business license ordinance, the City has recently
embarked on a public awareness campaign. This campaign is designed to educate the
business community on the requirements and procedures for business licensing in the City of
Carlsbad. Over 1,200 letters were mailed to various businesses that are potentially doing
business in the City without a license. The City has also implemented a temporary amnesty
period through September 30, 2000, for newly licensed businesses. During this amnesty
period, all penalties for prior business license taxes will be waived for newly licensed
businesses.
The City expects to see business license tax revenues grow during the next year due to this
compliance campaign, as well as new businesses moving into the community.
Transfer Taxes ($993.000) - When there is a consideration paid
for property, the County Assessor's Office charges a transfer tax.
The transfer tax rate in San Diego County is $1.10 per thousand
multiplied by the selling price of the property. The City receives
50% of the transfer tax charged for sales within the City of
Carlsbad. During the current fiscal year, transfer taxes were down 8% due to
the slowing down of the housing resale market towards the end of the fiscal year due to the rise
in interest rates.
Dowt
8%
13
Intergovernmental
Up
16%
Vehicle License Fees ($3.8 Million) - Vehicle License Fees (VLF)
have increased by $529,000 over 1998-1999 figures. This is an
increase of 16% over the prior fiscal year. Vehicle License Fees 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. Vehicle License Fees have increased this year due to the population growth in
the City and the statewide increase in VLF received.
Despite the reductions given to citizens in VLF by the State, the City still receives their full share
of revenue. The State's General fund pays the cities for the reductions made in VLF fees.
Other Intergovernmental Revenues ($821.000) - Other
intergovernmental revenues include miscellaneous receipts received
from the State or Federal governments. Included in the $821,000
received this year are revenues to partially replace property taxes
that were shifted to schools back in the early 90's, reimbursement for
booking fees, and reimbursements for mandated costs and Peace Officer Standards and
Training (POST) expenses.
Up
15%
Homeowners Exemptions ($288.000) - When property taxes are
calculated on a particular parcel of property, the first $7,000 of
property value is excluded from the property tax calculation. The
State then reimburses the City for this mandated exemption. This
reimbursement is entitled Homeowner Exemption revenue, and is
shown under intergovernmental revenues.
Licenses and Permits
Development-Related Revenues ($5.3 Million) - Development-related
revenues, which include building permits, planning fees, building department
fees and engineering fees, all reflect a slowing down in the
Carlsbad building industry, compared to the record-setting 1998-
1999 fiscal year.
The most significant source of development-related revenue this year was for building permits.
Building permit revenues are reflected as part of Licenses and Permits, whereas the other
development-related revenues are shown as Charges for Services. Building permits are issued
to cover the cost of regulating construction activities. This allows the City the means to protect
overall community interests. In fiscal year 2000, 1,838 new homes were started, compared to
2,206 new homes in fiscal year 1999. Total commercial/industrial building permits issued this
year comprised 265,487 commercial, and 475,664 industrial square feet. This compares to
1,141,200 commercial, and 1,084,900 industrial square feet permitted last fiscal year. In total,
building permit revenues were $2.2 million in 1999-2000, down from $2.5 million is fiscal year
1998-1999.
14
Residential Units Trend
1985 to 2005
Permits
Issued
3000 -
onnn
1SOO
mnn
_
Actual
- — —
in ^ r-
:
«0«0
BI :j
5 g 5 Si 8 | 8 :o r•» cn a
,
-
j 8 S I
Estimated
':--
ffl
> *- <M o ** iri3 O O O O OD O O O O OU OJ CM <XJ CU CXI
Fiscal Year
Down
11%
Other Licenses and Permits ($1.2 Million) - Other licenses and
permits consist of plumbing, electrical, mechanical, right-of-way,
grading, conditional land use, lagoon and other miscellaneous permit
revenues. Due to the slow down in the building industry, these
revenues dropped by 11% from last fiscal year.
Charges for Services
Ambulance Fees ($931.000) - The City bills any individual who is
transported in one of the City's ambulances. Billing and
collecting of these fees is done by an outside company, which
receives a percentage of the fees collected. For fiscal year
2000, ambulance fees were 9%, or $73,000, higher than fiscal
year 1998-99, due to increased collection rates and an increase in the City's population.
Up
9%
Dowr
16%
Recreation Fees ($888.000) - Recreational fees are generated
through instructional classes, youth and adult sports, the triathlon
and other special events, day trips, various aquatic programs, and
lagoon permits. Year-to-date recreation fee revenue is $169,000
""" ~ ^ less than the previous fiscal year. In the current fiscal year, fees were
collected for classes and events to be held in the 2000-2001 fiscal year. The City reflected the
fees collected as deferred revenues, as opposed to prior years when the fees were shown as
revenues of the current year.
Fines and Forfeitures ($771.000) - Fines and forfeitures consist mainly of receipts
from parking citations and the City's share of fines from moving
violations. They totaled $771,000 for the year. This is 4%, or
$33,000, less than fiscal year 1998-1999. The largest portion of these
revenues is derived from moving violations. These revenues are
received from the County of San Diego and the State of California.
Dowr
4%
15
Income From Property and Investments ($2.2 Million) - Year-to-date income from
investments and property is $235,000, or 12%, higher than fiscal year
1998-1999. Interest income is $380,000 higher than last year due to
higher interest rates and the maintenance of higher average daily cash
balances, while sales and rentals of property are essentially identical to
the previous fiscal year.
Up
12%
Up
4%
Interdepartmental Charges ($2 Million) - Interdepartmental charges are
$73,000, or 3.8%, more than last year. The majority of this variance is due
to an increase in internal service fund charges, as well as the inclusion of a
building usage allowance in these expenses.
Miscellaneous ($598.000) - Other revenue sources include revenues received by the City to
offset the costs of special studies or projects for developers,
reimbursements for damage done to City streets, right-of-ways, and
other City-owned property, other miscellaneous reimbursements,
and donations. Year-to-date, other revenue sources were down by
50 percent. In fiscal year 1999, the City received $500,000 in condemnation
funds from a developer, and $465,000 from the County of San Diego for money held on deposit
for the 800MHz system.
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
Debt Service
TOTAL
1999-2000
$ 2,166
3,755
21,436
5,371
8,132
11,578
384
11
$52,833
7998-7999
$ 2,568
2,666
21,613
5,002
6,848
10,563
325
0
$49,585
1999-2000 over
(under) 1998-1999
$ (402)
1,089
(177)
369
1,284
1,015
59
11
$3,248
Percent
Change
(15.7)%
40.8
(.8)
7.4
18.8
9.6
18.2
100.0
6.6%
General fund expenditures were $52.8 million; an increase of $3.2 million from 1998-1999. The
economy continued to strengthen again this fiscal year, allowing the City to maintain service
levels and expand or add some programs for the fourth straight year, including:
• Increased Police staffing
• New CAL-ID position for faster processing of major crime scenes
• New training position for training of the Fire department
• New Faraday Center
16
New South Carlsbad Library
Remodeling of Cole Library
Installation of a new records management system
Installation of a new GIS software
New Storm Water Quality Management Program
New American Red Cross "Guard Start" Program
Expanded City website
Expanded City internship program
Additional community services instructional classes
Additional day camps
Expanded Stay 'NT Play and Kidz Camp programs
Additional senior citizen day trips
Additional recreational opportunities at the expanded Poinsettia Park
Increased hours of operation at the City's community pool
Significant changes noted in the major service areas were as follows:
Policy and Leadership Group
Spending in Policy and Leadership Group decreased by
$402,000 this fiscal year. This group includes the City Council,
City Manager, City Clerk, City Attorney and City Treasurer
departments. The decrease in expenditures is attributable to
three factors. First, the City hired consultants during the 1998-
1999 fiscal year to determine the feasibility of the City acquiring
the former San Diego Gas and Electric plant. These one-time costs did not occur in
the current fiscal year. Another factor affecting the decrease in expenditures were
the costs associated with the elections held in November 1998, and the fact that no
elections were held this past fiscal year. Last, a reorganization occurred during the
year, moving the Administrative Services Director to the Administrative Services
major service area.
Administrative Services
Administrative Services, which includes the
Finance, Purchasing, Human Resources
and Records Management, had an increase
in expenditures in 1999-2000 of $1.1 million.
This increase can be traced to the creation
of a new program within the Administrative
Services major service area; Records
Management. The Records Management program was created to provide quick
access to documents and maps stored in electronic form for use by staff and
citizens. In addition, the costs for the Administrative Services Director and his staff
were transferred to this group from the City Manager's office.
17
Public Safety
Spending on public safety programs totaled $21.4 million; down
$177,000, or 1%, from 1998-1999. The decrease was due to
the pay off of certain lease agreements for the Regional
Communications Systems in the amount of $1.6 million dollars
during 1998-1999. Public safety staffing increased during the
year with the addition of patrol officers, clerical support, a
DARE officer, a communications operator and a fire prevention
officer. These additional positions were created in a continued effort to focus on the
health and safety of our citizens; one the City Council's primary goals.
Community Development
Community Development, which encompasses the Hiring Center,
Geographic Information Systems (GIS), Economic Development,
Community Promotion (CCVB), Land Use Planning, Building
Inspection and related administrative costs, had expenditures of
$5.4 million for fiscal year 1999-2000; an increase of $369,000.
The increase in expenditures can be traced to higher building
inspection and GIS expenses during the past twelve months. The
Building Inspection department increased their utilization of a building intern
program. This program was implemented to assist the department when the
demand for their services is high, and it also provides a pool of trained individuals to
fill vacancies as they occur. The GIS area was involved in a software
implementation during the year. This software will allow direct access to all
mapping data from the various geographic information systems used by the City.
Community Services
Community services consists of the Library, Cultural Arts,
Recreation, Park Planning, and Senior Citizen programs. This
group had total expenditures of $8.1 million for the year; an
increase of $1.3 million. The majority of this increase was for
Library services, including increased staffing for the opening of
the new library. Additional dollars were expended in the
recreational area to begin the "Guard Start" program. This
program offers the American Red Cross "Guard Start" course to
the City's youth between the ages of 11 and 14, teaching
children water safety skills necessary to advance into a professional lifeguard
position in the future. Additional recreational opportunities were also added to the
newest phase completed at Poinsettia Park.
Public Works
Public Works is charged with building and caring for all of the
assets of the City. It includes Engineering; Parks, Streets and
Facilities Maintenance; Building Maintenance; and Traffic Sign
and Signal Maintenance programs. Total expenditures in 1999-
2000 for Public Works were $11.6 million, an increase of $1
million over 1998-99. Increases during the year were noted in
Engineering, Facilities and Parks Maintenance. In addition to
18
new vehicles and increased Information Technology charges, Engineering took on a
number of major projects during the year.
First, an inventory of Public Works infrastructure is being done to help the City
evaluate and maintain their infrastructure. It is also required under a new
pronouncement from the Governmental Accounting Standards Board. Second, a
Storm Water Quality Management program was developed to reduce the amount of
pollutants going into our local lagoons. The federal government mandates this
program. In addition, staff was added to care for the new library and the new
Faraday Center as well as the expansion of Poinsettia Park.
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 increased by $59,000
in 1999-2000, due in part to the expenses associated with the Y2K preparation and
higher administrative fees paid to the County for the collection of property taxes,
due to the increase in assessed values of property.
Special Revenue Funds
The City's Special Revenue funds, which account for the collection and use of special or
restricted revenues, received $11.7 million in total revenue in 1999-2000. This is a decrease of
$3.3 million, or 22.2%, from last year. A majority of this decrease was a $4.1 million decrease
in contributions from property owners. This was the result of a $2.7 million decrease in LCP
agriculture mitigation fees received from the State for mitigation associated with the
development along the coastal region of Carlsbad. In addition, last year the City sold $2.7
million of affordable housing credits to developers, to satisfy their obligations under the City's
Inclusionary Housing Ordinance. In the current fiscal year, the City sold $1.3 million of
affordable housing credits.
Two new funds were established during the year. The Infrastructure Replacement fund
accounts for funds set aside on an on-going basis for the replacement of the base infrastructure
of the City. The other new Special Revenue fund is the Tyler Court Apartments. This fund is
used to account for the activity at the Tyler Court Apartments, an affordable apartment complex
for senior citizens, purchased by the Redevelopment Agency.
Several of our smaller Special Revenue funds that were previously reported separately, have
now been combined into other funds. These funds include the Library Audio-Visual Insurance
fund, the Civic Arts Program and the Calavera Heights Mitigation fund.
19
Special Revenue Funds
Revenues
(in thousands)
Category
Taxes
Intergovernmental
Charges for Services
Fines and Forfeitures
Income from Property
and Investments
Property Owner
Contributions
Donations
Miscellaneous
TOTAL
1999-2000
$ 1,769
3,976
54
69
1,641
3,281
561
337
$11,688
1998-1999
$1,679
4,069
65
132
986
7,397
350
347
$15,025
1999-2000 over
(under) 1998-1999
$ 90
(93)
(11)
(63)
655
(4,116)
211
(10)
$(3,337)
Percent
Change
5.4 %
(2.3)
(16.9)
(47.7)
66.4
(55.6)
60.3
(2.9)
(22.2)%
Expenditures from the Special Revenue funds support a wide variety of programs and projects.
Some of the major uses for these 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.
Funds set aside for the future repair and replacement of the City's base
infrastructure.
Housing assistance through the Tyler Court affordable senior apartments.
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
Principal and Interest
TOTAL
1999-2000
$ 364
6,167
956
2,245
1
$9,733
1998-1999
$ 315
3,635
694
2,126
0
$6,770
1999-2000 over
(under) 1998-1999
$ 49
2,532
262
119
1
$2,963
Percent
Change
15.6%
70.0
37.8
5.6
100.0
43.8%
Spending in Special Revenue funds totaled $9.7 million in 1999-2000; an increase of $3 million
from 1998-1999. The largest contributor to this increase was a $2 million contribution from the
Low and Moderate Income Housing fund for the purchase of the Tyler Court affordable senior
complex. The Tyler Court Special Revenue fund also had over $160,000 in operating expenses
for the period of the year that the City owned the complex.
Several City grants were distributed this year for the first time. Community Activity Grants in
the amount of $40,000 were given to enhance the quality of life in Carlsbad. The Flower Fields
Foundation gave $27,000 for installation of a dual reclaimed/potable watering system to serve
the Flower Fields, and $37,000 to further seed development and new plant selection to
preserve the best forms and colors of the current varieties of Ranunculus. The Affordable
Housing Trust fund saw a large increase in expenditures as reimbursements were made to a
developer for the completion of affordable housing units.
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, 2000, the total debt
payable from non-enterprise sources, excluding obligations under capital leases and advances,
was $19.7 million. City debt is comprised of the Hosp Grove Certificates of Participation
(COPs) and the Redevelopment Tax Allocation bonds. No general obligation bonds are
outstanding as of June 30, 2000.
Debt Service Funds
Revenues
(in thousands)
Category
Taxes
Income from Property and
Investments
Total
1999-2000
$1,385
99
$1,484
1998-1999
$1,246
89
$1,335
1999-2000 over
(under) 1998-1999
$139
10
$149
Percent
Change
11.2%
11.2
11.2%
21
Debt service revenues totaled $1.5 million; an increase of $149,000 from last year. The
increase in taxes was due to the increase in assessed values within the Redevelopment Area.
Additionally, higher average cash balances in the Hosp Grove and Redevelopment funds during
the year created larger interest earnings in those funds.
Debt Service Funds
Expenditures
(in thousands)
Category
General Government
Principal
Interest and Fiscal
Charges
TOTAL
1999-2000
$ 15
795
1,651
$2,461
1998-1999
$ 15
825
1,645
$2,485
1999-2000 over
(under) 1998-1999
$ 0
(30)
6
$(24)
Percent
Change
0%
(3.6)
.4
(1.0)%
Debt-related expenditures were essentially the same as those in the prior fiscal year.
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 districts 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
Contributions from Property
Owners
Miscellaneous
TOTAL
7999-2000
$9,077
5,214
197
6,539
1 1 ,452
238
$32,717
1998-1999
$11,474
9,852
154
5,859
38,366
7
$65,712
1999-2000 over
(under) 1998-1999
$ (2,397)
(4,638)
43
680
(26,914)
231
$(32,995)
Percent
Change
(20.9)%
(47.1)
27.9
11.6
(70.2)
3300.0
(50.2)%
22
The City saw a slow down in the rate of development this past year. This slow down affected
several of the City's impact fees used to fund capital projects. Tax revenues result from the
collection of community facilities district (Mello-Roos) special taxes and the license tax on new
construction. The 1999-2000 decrease in tax revenues is the result of lower Mello-Roos special
tax payoffs this year. Intergovernmental revenues decreased during the year, as the City did
not draw down as much TransNet funding as they have in the past. This is not an indication of
a reduction in money available from TransNet, but rather a timing factor in when the funds will
be used. Increases in income from property and investments are the result of the maintenance
of larger cash balances during the year. The decrease in contributions from property owners is
due to a large payment made in 1998-99 by the Villages of La Costa for the Rancho Santa Fe
Road District.
Capital Projects Funds
Expenditures
(in thousands)
Category
General Government
Capital Outlay
Principal
Interest
TOTAL
1999-2000
$ 1,062
39,543
18
6
$40,629
1998-1999
$ 1,209
52,107
0
0
$53,316
1999-2000 over
(under) 1998-1999
$ (147)
(12,564)
18
6
$(12,687)
Percent
Change
(12.2)%
(24.1)
100.0
100.0
(23.8)%
Spending on capital projects decreased by 23.8% in 1999-2000 from the previous year. This is
consistent with the slow down in development revenues discussed earlier. Although the pace
of development may be slowing, the City continues to ensure that facilities are available to
service the developing areas as well as the current residents through compliance with its
Growth Management Plan. The Growth Management Plan requires that a standard level of
facilities is available to meet the new demands, or development cannot proceed. City projects
are prioritized based on these standards. For fiscal year 1999-00, it resulted significant
spending on projects which will facilitate the traffic needs of the City. Street projects planned
for the next couple of years continue this trend with $34.6 million of new street capital projects
budgeted in the upcoming year.
Historically, capital project
spending has matched the
residential development
occurring within the City,
ensuring that the necessary
infrastructure is in place for
new Carlsbad residents.
The anomaly in 1991 (shown
in the graph) occurred when
the City acquired Alga Road
and certain improvements
along the road within the
Alga Road Assessment
District.
Capital Project Expenditures
Versus Residential Permits Issued
2500
1991 1993 1995 1996 1997 1998 1999 2000
'Capital Expenditures
"Permits issued
23
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 was
completed this fiscal year, with funding
from the Community Facilities District No. 1
(CFD #1). This 64,000 square foot library
opened to the public in September 1999.
s Cole Library Remodel - Once the South Carlsbad Library was opened to the public, the
Cole Library was closed down to renovate for safety improvements, reallocation of staff
and public meeting spaces, mechanical upgrades, and improvements to building
finishes. The Cole Library is once again open for business.
^ Faraday Center - The City previously had several administrative facilities located in
different areas throughout the City, which were no longer able to accommodate current
and anticipated space needs. The Faraday Center was completed in January of 2000,
and is staffed with employees from Public Works, Community Development and
Administrative Services. The consolidation has improved customer service by providing
a single location to serve the development community. In addition to improved
customer service, the consolidation has improved efficiency and interdepartmental
communication.
s 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 La Costa Avenue and Rancho Santa Fe Road widening projects
had design or construction activity during the past fiscal year. Other major circulation
projects under construction or design include the extensions of Cannon Road west,
Faraday Avenue south, and Poinsettia Lane west.
s Rancho Carrillo Assessment District - The City formed the Rancho Carrillo Assessment
District and acquired certain capital improvements within this area of Carlsbad in the
previous fiscal year. In the current fiscal year, the City made additional reimbursements,
to developers, for street construction completed within the District.
s Pine School Acquisition - The Pine School was acquired by the City during the past
year, for a future park site development. This seven-acre park will be located in the
northwest quadrant of the City.
v Water Distribution - Several waterlines were worked on during the year including
segments along Poinsettia Lane, College Boulevard, El Fuerte and across Interstate 5,
between Batiquitos Drive and Navigator Circle. In addition, construction continued on
the Cannon Road West transmission main.
J South Aqua Hedionda Interceptor - Phases I and II continued to progress during the
year. This project is designed to provide sewer service to those areas generally
tributary to the south side of Agua Hedionda Lagoon.
24
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 is 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 businesses, 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.
Enterprise Funds
Total Revenues. Expenses and Net Income
(in thousands)
1999-2000
Revenues
Expenses
Net Income
1998-1999
Revenues
Expenses
Net Income
Percent Change
Water
$22,179
(18,609)
$ 3,570
$19,942
(17,172)
$ 2,770
28.9%
Golf Course
$161
(199)
$(38)
$300
(214)
$ 86
(144.2)%
Sewer
$ 8,422
(5,165)
$ 3,257
$ 7,897
(5,076)
$2,821
15.5%
Solid Waste
$749
(149)
$600
$683
(129)
$554
8.3%
Most of the increase in water revenues during the current fiscal year is due to water sales. This
increase in water sales is the result of a 12% increase in the number of water units sold, as well
as an increase in the customer base. The increase in water sales more than offset the 16%
increase in purchased water. Purchased water increased, not only due to the number of water
units purchased, but also from the topping off of reservoirs, the subsidizing of reclaimed water
with potable water and a 1% increase in the price of water purchased. Another factor creating
a higher revenue total was a large refund received from the San Diego County Water Authority,
based on fiscal year 2000 water sales.
25
Design has been completed on a 250-acre municipal golf course located directly south of the
future Veterans Memorial Park. The location is directly accessible to major roads and the
interstate freeway. The City is currently awaiting approval of the plans from environmental
agencies before construction can begin. It is hoped that construction will be underway
sometime in the next year. Revenues to the Golf Course fund for 1999-2000 were derived
entirely from interest on cash balances. Golf course expenses consist primarily of street
assessments and Mello-Roos taxes associated with the land purchased for the municipal golf
course. Another source of cash to the fund was a $600,000 contribution from the City's
General fund to cover future expenses.
A major factor in the rise in Sewer revenues was the maintenance of higher average cash
balances throughout the year, in the Capital Connection Fee and Capital Replacement funds.
Expenses for sewer operations total $5.2 million, essentially the same as the previous fiscal
year. Although Encina plant operating expenses were higher this year, due to a one-time
payment representing the City's share of costs and reserves in excess of payments, there was
a large reduction in capital maintenance costs in the current year versus fiscal year 1998-1999.
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 revenues for the year was the result of higher earnings
on the fund's increased cash balances held during the year.
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)
1 999-2000
Revenues
Expenses
Net Income
7998-7999
Revenues
Expenses
Net Income
Percent Change
Fleet
Management
$3,100
(2,468)
$ 632
$ 3,091
(2,301)
$ 790
(20.0)%
Health
Insurance
$ 2,593
(2,767)
$ (174)
$ 2,789
(2,636)
$ 153
(213.7)%
Information
Technologies
$ 2,474
(2,278)
$ 196
$1,619
(1,653)
$ 107
83.2%
Risk
Management
$ 909
(1,080)
$ (171)
$ 849
(670)
$ 179
(195.5)%
Workers'
Compensation
$ 639
(759)
$(120)
$ 638
(755)
$(117)
(2.6)%
26
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 up by 7% from last year. This revenue represents
charges to other departments for general liability coverage. Claims expense and other related
costs for the Risk Management Self-Insurance fund totaled $1.1 million; up $410,000 from
1998-1999. The City is a member of the California Municipal Excess Liability Program, a group
purchase program for general liability coverage, covering most losses exceeding $500,000, with
up to a maximum of $10,000,000 per occurrence. The increase in claims expense was due in
large part to a reserve set up for $500,000 to cover potential losses in a suit brought against the
City.
The estimated claims payable for general liability at year-end was $624,000; up $487,000.
Again, this increase is attributable to the potential claim mentioned above. Working capital
totaled $2.9 million at June 30, 2000.
Revenues in the Workers' Compensation fund are essentially the same as the prior fiscal year.
This revenue represents charges to other departments for Workers' Compensation coverage.
Once again, due to a healthy fund balance, charges to other departments actually decreased
on a per employee basis. Workers' Compensation claims expense for 1999-2000 amounted to
$676,000, compared to $695,000 in 1998-1999. Workers' Compensation estimated claims
payable at year-end was $835,000; again, essentially identical to fiscal year 1998-1999.
Working capital at June 30, 2000, is $1.1 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.
At the beginning of the 1999-2000 fiscal year, the Fire bargaining unit switched their health
coverage to the Public Employees Retirement System Health Plan, and dropped out of the
City's self-insured plan. This change can be seen in the reduction of revenues for the fund
during the year. However, due to the increasing cost of providing health benefits, our claims
expense increased by over $130,000 as compared to 1998-1999. 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 1999-2000, the health insurance Internal Service
fund produced an operating loss of $174,000. The City's self-insured health plans are currently
under review, and once a final decision has been made on the revisions to the health plans for
the employees, the negative fund balance will be addressed.
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. Vehicle purchases totaled $1 million; $100,000 more than the
previous year. Fleet operating expenses during 1999-2000 were $2.4 million. The $6.4 million
year-end working capital is earmarked for vehicle replacement.
27
The City's Information Technologies Internal Service fund accounts for the resources which
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. Over the past several years, the City
invested heavily in new hardware and software, but had not kept up on the staff resources
needed to fully implement the applications. During the past fiscal year, five new positions were
added to the fund. The added staff will allow City departments to use the technology we
currently own, and future applications, to their fullest extent. At year-end, working capital
increased to $1.4 million; up $282,000 from 1998-1999. Of this amount, $435,000 is
earmarked for replacement of equipment in the future.
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.
The City held a total of $16.6 million in Agency funds as of June 30, 2000, compared to $17.9
million at the end of 1999-2000. This decrease is due to the bond call made in the
Reassessment District during the 1999-2000 fiscal year, creating a reduction in both the assets
and liabilities of the fund.
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 1999-2000, total assets in the pooled investments were $320.7 million. This
represented an increase of $21.1 million, or 7.1%, from fiscal year 1998-1999. 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 $17.6 million in interest, which
was an increase from $15.8 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 1999-2000 increased to 5.81% from 5.71% in
fiscal year 1998-99.
28
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 $10 million at the end of fiscal year 1999-2000.
The fiscal year 1999-2000 pooled investments and the investments held separately include the
types of instruments indicated below.
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
0.00-5.97
0.00-7.68
5.50-6.63
4.75-9.50
5.94-6.88
5.18-6.19
Amount Invested
(In Millions)
$ 1.2
206.6
9.0
80.9
8.8
14.2
$320.7
0.00-2.40
4.73-9.33
5.18-6.19
$ .7
5.0
2.9
1.4
$ 10.0
$330.7
29
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)
250
200
150
[3 Spending Limit
• Approp of Taxes
100 -
50 -
In 1991-1992, state law allowed the
recalculation of the City's limit with new ^ ^ ^ ^ ^ ^ ^ ^ ^ ^
inflation factors. Using population growth in
San Diego County and growth in State per
capita income allowed the Gann limit for 1999-2000 to increase to $198.1 million.
Appropriations of "proceeds of taxes" were only $44.9 million, thus allowing the City a healthy
margin of $153.2 million.
Economic Outlook
Carlsbad is a major employment center in the San Diego region. It was planned with a
centralized employment core supporting and supported by several adjoining residential
communities. The planned commercial/industrial core has developed substantially over the
past decade and is now approaching build-out. With development has come rapid growth in
jobs. In fact, job growth in Carlsbad has averaged more than 5% annually (1500 jobs per year)
since 1990. These businesses provide a healthy and diverse economic base that serves many
of the employment, shopping, recreation and service needs of Carlsbad residents. Carlsbad's
new housing construction has also been significant, with more than 7,300 homes built during
the decade. Residential population in the City has grown from 63,000 in 1990 to over 80,000
today. Residential build-out is expected at a population of 120,000.
Carlsbad's economy is heavily impacted by events in the San Diego region, and, to a lesser
effect, throughout the State. Burgeoning high-tech industries in the San Diego region are
creating a significant demand for high-tech workers, new housing, new schools and more
services. It was predictable that new technologies and innovation introduced in the region
would ultimately result in high levels of growth in the form of new and better paying jobs, and
greater housing demand. However, the region's ability to respond to continued levels of rapid
30
growth in the future is less certain. The region's attractiveness as a place to expand or relocate
will depend in large part on its ability to respond to the rising cost of living, increasing traffic
congestion, and limited labor force.
Industrial and Commercial Development
Carlsbad's industrial market reached its peak in 1998, with over 3.1 million square feet
constructed. Much of the new construction activity was speculative, and the direct result of an
anticipated demand for space created from new technologies and job growth. Although the San
Diego and Carlsbad market is expected to continue growing, construction in the
commercial/industrial market in Carlsbad dropped back to approximately 1.3 million square feet
in 1999. As speculative space constructed during 1998-1999 remains unfilled, commercial and
industrial construction for 2000 is expected to grow at an even slower rate (under 400,000
square feet). The current vacancy rate (18% in the first quarter of 2000) and historic levels of
absorption will likely result in an inventory of industrial and office space that could take two to
three years to fill. In addition, some aging industrial and commercial properties are being
redeveloped to meet the demands of high-tech tenants and consumers. Currently, there are
fewer than 80 acres available in Carlsbad's industrial corridor for new construction, with only an
additional 300-400 available within the next five to ten years.
Carlsbad's commercial growth in 1999 was robust with the opening of Legoland, the Grand
Pacific Resort and Hotel, Marriott Residence Inn, and a number of new restaurants. This year
new projects such as the Hilton Gardens and Marriott Courtyard, as well as the Islands @
Carlsbad, will bring new opportunities and revenues to the City. During the next few years,
Carlsbad will see the addition of more hotels and the development of new commercial centers.
However, the long-term future of commercial development remains uncertain as the City
Council is evaluating the future of commercial land uses within the City.
Residential Development
During the mid-1990's, residential construction activity slowed considerably as a result of losses
in manufacturing jobs and an overall sluggish economy. However, 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 1997 and 1998, new
permits for residential units totaled more than 2,400, and in 1999, the City hit a ten-year high
with over 2,200 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 should be at a slower rate.
This is due to fewer projects in the development review pipeline, higher home prices, and
recent increases in mortgage interest rates. These factors will likely contribute to 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 of, 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 that new development occurs in conjunction with careful planning of infrastructure and
service needs. Under the Growth Management Program, development occurs only when
31
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
700 units per year and annual commercial/industrial development between 337,000 and
693,000 square feet per year. With this level of growth, Carlsbad expects to construct between
$22 and $54 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.
Fiscal Reform
Fiscal reform between the State of California and local governments has been a hot topic of
debate for many years. The debate has centered around the following issues:
> the unpredictability of city revenues due to reductions in aid from Federal and State
government as well as the loss of property tax revenues to the State in the early 1990's;
> the increasing reliance on sales taxes to fund city services and the possible "fiscalization" of
land use decisions, whereby the tax policy may be driving land use decisions; and
> the increasing difficulty in obtaining payment for unfunded State mandates.
During the last legislative session, a conference committee on State and Local Fiscal Reform
was created and was allocated $200 million in the 2000-2001 State budget to be used for "local
fiscal relief." The City will receive approximately $320,000 of the $200 million on a one-time
basis only. This returns a very small portion of the over $3 million in annual property taxes
which were shifted to the State from Carlsbad in the early 1990's.
Many reform proposals have been made, predominantly surrounding some type of revenue
swap, but no proposal has been adopted or dismissed at this time. Many of the proposals
contain provisions that would change the allocation of at least some or all of the sales taxes
collected by cities from a situs distribution (based on the location of the sale) to a per capita
distribution. This type of a change would have a dramatic, negative impact to Carlsbad as we
are now generating one of the highest per capita sales tax rates in San Diego County. Any
proposal that redistributes the tax base or the growth in the tax base will eventually become the
distribution method of the future. At risk is the ability of Carlsbad's tax base to continue to grow
with the population it must serve. The fiscal reform debate is certain to continue in the next
legislative session. Whether or not consensus can be obtained for any of the proposals
remains to be seen.
32
Despite the threats brought by
fiscal reform, Carlsbad is expected
to continue to prosper. Through
careful planning and prudent
financial management, the City
has weathered the roller coaster
ride of the 1990's, and is entering
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. These increased revenues will enable the City to enhance service
levels, ensuring the maintenance of a high quality of life for Carlsbad's residents. Carlsbad is
focused on achieving its mission of providing top quality sen/ices 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, 1999. This was the third 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, 1999. 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.
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.
34
(4) Internal controls exist within the accounting system to ensure safety of assets from
misappropriation, unauthorized use or disposition, and to maintain the accuracy of
financial record keeping. These internal controls must be established consistent with
sound management practices based on the cost/benefit of the controls imposed. The cost
of a control should not be excessive in relation to its benefit as viewed by City
management. The internal controls in existence within the City's system are sufficient to
ensure in all material aspects both the safety of the City's assets and the accuracy of the
financial record keeping system.
(5) 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,
2000, 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 and Associates, L. L. P. for the professional way in which the audit of this
financial report was conducted. It has been a pleasure to work with the Conrad and Associates
staff throughout this period.
Respectfully submitted,
LISA HILDABRAND
Finance Director
35
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, 1999
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.
^ •"' V .President
Executive Director
36
California (Society of
^Municipal ^Finance Officers
Certificate of Award
Outstanding Financial Reporting 1998-99
Presented to the
City of Carlsbad
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.
February 28, 2000
Ch^fr. Proftisloiitr& Ttchinicil Stindirds Committee
Dedicated to Excellence in Municipal Financial Management
37
ORANGE
COUNTY
RIVERSIDE COUNTY
OCEANSIDE
CARLSBAD
ENCINITAS
SOLANA BEACH
DEL MAR 11-5
LAJOLLA
SAN DIEGO
CORONADO
IMPERIAL BEACH
TIJUANA
38
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
Vacant Parks and Recreation Commission
James Page Personnel Board
Bill Compas 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
39
CITY OF CARLSBAD ORGANIZATION CHART Commission
Sister City
Committee
I Housing
Commission Library Board
of
Trustees
MAYOR
COUNCIL
CITY
TREASURERCITY CLERK
Planning
Commission, Safety
i Commission
1 Parks & Rec
Commission
CITY MANAGER CITY ATTORNEY
GENERAL
SERVICESADMINISTRATION
ENGINEERING
SERVICES
MAINTENANCE &
OPERATIONS
HUMAN
RESOURCES
ECONOMIC
DEVELOPMENT
INFORMATION
SYSTEMS
GEOGRAPHIC
INFO SYSTEMS RECREATION
HOUSING AND
REDEVELOPMENT
SENIOR
CENTER
RISK
MANAGEMENT
Elected
Council Appointed '- -
Staff Support
Reporting Relationship
Programs I I
092600
BOARDS, COMMISSIONS, AND COMMITTEES
VOTERS
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
Planning
Commission
Senior
Commission
Serra Cooperative
Library System
Advisory Board
Sister
City
Committee
Traffic
Safety
Commission
Underground
Utility Advisory
Committee
081099
42
CONRAD AND CERTIFIED PUBLIC ACCOUNTANTS
ASSOCIATES,L.L.R 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, 2000, 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, 2000,
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.
During the year ended June 30. 2000, the City changed the manner in which it accounts for loans
between the primary government and its blended component units, as discussed further in note
27.
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 statistical schedules listed in the table of
contents and we do not express an opinion on them.
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
In accordance with Government Auditing Standards, we have also issued our report dated
October 6, 2000 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.
October 6, 2000
44
45
CITY OF CARLSBAD
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 2000
Governmental Fund Types
Assets and Other Debits
Assets:
Cash and investments (note 3)
Receivables:
Loans
Taxes
Accrued interest
Accounts, net
Other
Due from other funds (note 4)
Due from other governments
Advances to other funds (note 5)
Inventory
Prepaid items
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 (note 5 )
Due to other governments
Capital lease payable
Estimated claims payable (note 19)
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 17)
Fund balances:
Reserved (note 15)
Unreserved (note 15)
Retained earnings:
Reserved (note 15)
Unreserved (note 15)
Total equity and other credits
Total liabilities, equity and other credits
$
$
$
_$
General
46,016,094
269,496
3,404,217
-
102,928
75,594
318,797
-
18,509,922
41,286
28,655
68,766,989
4,208,673
18,489
144,399
7,892,659
12,264,220
14,324,094
42,178,675
56,502,769
68,766,989:^^^^^^^=^^== =
Special
Revenue
25,616,748
7,399,340
30,060
114
40,824
-
-
254,680
2,000,000
-
171,499
35,513,265
320,727
187,932
445,974
105,441
61,862
257,755
1,379,691
13,675,779
20,457,795
34,133,574
35,513,265
Debt Capital
Service Projects
1,948,210 129,402,738
.
35,173 36,878
16,246 23,588
527,570
-
-
131,408
2,000,854
-
218,095
1,999,629 132,341,131
2,578,126
130,865
11,562,749 7,764,853
9,323
538,143
11,562,749 11,021,310
1,528,500 12,453,958
(11,091,620) 108,865,863
(9,563,120) 121,319,821
1,999,629 132,341,131
See accompanying notes to general purpose financial statements.
46
Proprietary Fund
Enterprise
96,968,929
.
58,411
-
4,011,816
-
-
-
-
277,341
4,350
1,715,830
28,557
132,810,944
-
,
235,876,178
4,420,199
-
-
2,737,200
1,289,667
-
-
-
1,769,160
1,494,058
279,834
1,534,502
14,158,941
27,683,561
137,353,743
_
-
1,682,026
69,156,848
208,192,617
235,876,178
Types
Internal
Service
12,660,308
_
-
-
25,042
-
-
-
-
97,075
35,280
_
-
6,521,989
-
.
19,339,694
466,617
-
-
-
-
23,556
1,842,719
-
-
-
_
14,342
-
2,347,234
8,815,419
_
-
.
8,177,041
16,992,460
19,339,694
Fiduciary
Fund Type
Agency
16,379,397
_
102,297
95,052
16,202
-
-
-
-
-
-
_
-
-
-
.
16,592,948
1,707,618
-
-
-
-
-
8,001,850
.
6,883,480
_
-
-
16,592,948
-
_
-
_
-
-
16,592,948
Account Groups
General General
Fixed Long-Term Totals
Assets Debt (Memorandum Only)
328,992,424
7,668,836
3,667,036
135,000
4,724,382
75,594
318,797
386,088
22,510,776
415,702
457,879
1,715,830
28,557
109,017,322 - 248,350,255
1,999,629 1,999,629
19,264,504 19,264,504
109,017,322 21,264,133 640,711,289
11,994,342
1,707,618
318,797
22,510,776
1,413,597
23,556
1,842,719
8,001,850
1,769,160
8,593,122
279,834
10,237,401
21,264,133 35,423,074
21,264,133 104,115,846
109,017,322 - 109,017,322
146,169,162
41,982,331
160,410,713
1,682,026
77,333,889
109,017,322 - 536,595,443
109,017,322 21,264,133 640,711,289
47
48
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 2000
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 debt
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,
as restated (note 27)
Residual equity transfers out (note 18)
Fund balances at end of year
General
$ 50,036,802
4,903,524
3,320,851
5,498,777
770,949
2,226,973
2,006,923
-
-
597,693
69,362,492
6,305,309
21,435,799
5,371,046
8,132,000
11,577,483
-
7,273
3,765
52,832,675
Special
Revenue
1,769,133
3,976,488
-
53,724
68,882
1,640,663
-
3,281,059
561,208
337,107
11,688,264
363,587
6,167,398
956,264
2,244,946
-
568
224
9,732,987
Debt
Service
1,385,440
-
-
-
-
89,293
-
-
-
9,339
1,484,072
15,322
-
-
-
-
-
795,000
1,650,476
2,460,798
Capital
Projects
9,077,077
5,214,106
-
196,915
-
6,538,888
-
11,452,004
-
238,452
32,717,442
1,062,278
-
-
-
-
39,543,074
17,742
5,830
40,628,924
Totals
(Memorandum
Only)
62,268,452
14,094,118
3,320,851
5,749,416
839,831
10,495,817
2,006,923
14,733,063
561,208
1,182,591
115,252,270
7,382,909
21,799,386
11,538,444
9,088,264
13,822,429
39,543,074
820,583
1,660,295
105,655,384
16,529,817
8,353
(11,643,803)
94,905
(11,540,545)
4,989,272
52,113,497
(600,000)
$ 56,502,769
1,955,277
2,000,000
(1,008,353)
4,436
996,083
2,951,360
(976,726)
800,000
(250,000)
550,000
(7,911,482)
12,724,481
(2,630,678)
233,069
10,326,872
(426,726) 2,415,390
31,182,214 (9,136,394) 118,904,431
34,133,574 (9,563,120) 121,319,821
9,596,886
15,532,834
(15,532,834)
332,410
332,410
9,929,296
193,063,748
(600,000)
202,393,044
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
Year Ended June 30, 2000
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 debt
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,
as restated (note 27)
Residual equity transfers in
Residual equity transfers out
Fund balances at end of year
Budget
$ 49,229,000
4,649,000
3,207,000
6,052,000
816,000
2,350,000
2,100,000
-
-
1,000,000
69,403,000
10,990,134
22,130,057
6,165,787
9,420,069
13,352,116
7,273
3,765
62,069,201
7,333,799
7,500
(11,740,854)
-
(11,733,354)
(4,399,555)
52,113,497
(600,000)
$47,113,942
General Fund
Actual on
Budgetary
Basis
50,036,802
4,903,524
3,320,851
5,498,777
770,949
2,226,973
2,006,923
-
-
597,693
69,362,492
7,743,847
21,828,244
5,842,749
8,431,925
12,502,141
7,273
3,765
56,359,944
13,002,548
8,353
(11,643,803)
94,905
(11,540,545)
1,462,003
52,113,497
(600,000)
52,975,500
Special Revenue Funds
Variance-
Over
(Under)
807,802
254,524
113,851
(553,223)
(45,051)
(123,027)
(93,077)
-
-
(402,307)
(40,508)
(3,246,287)
(301,813)
(323,038)
(988,144)
(849,975)
.
-
(5,709,257)
5,668,749
853
97,051
94,905
192,809
5,861,558
-
-
5,861,558
Budget
1,853,750
3,974,648
-
60,000
30,000
956,078
-
2,739,000
209,855
458,068
10,281,399
680,991
8,017,233
1,338,378
6,403,048
568
224
16,440,442
(6,159,043)
-
-
(6,159,043)
31,182,214
-
25,023,171
Actual on
Budgetary
Basis
1,769,133
3,976,488
-
53,724
68,882
1,640,663
-
3,281,059
561,208
337,107
11,688,264
544,703
6,282,311
1,209,296
6,401,466
568
224
14,438,568
(2,750,304)
2,000,000
(1,008,353)
4,436
996,083
(1,754,221)
31,182,214
-
29,427,993
Variance-
Over
(Under)
(84,617)
1,840
-
(6,276)
38,882
684,585
-
542,059
351,353
(120,961)
1,406,865
(136,288)
(1,734,922)
(129,082)
(1,582)
.
-
(2,001,874)
3,408,739
2,000,000
(1,008,353)
4,436
996,083
4,404,822
-
-
4,404,822
See accompanying notes to general purpose financial statements.
50
Debt Service Funds
Budget
1,230,000
40,000
-
1,270,000
26,000
290,000
1,402,389
1,718,389
(448,389)
-
(448,389)
(9,998,399)
Actual on
Budgetary
Basis
1,385,440
45,363
9,339
1,440,142
15,322
290,000
1,394,418
1,699,740
(259,598)
(250,000)
(250,000)
(509,598)
(9,998,399)
Variance-
Over
(Under)
155,440
5,363
9,339
170,142
(10,678)
(7,971)
(18,649)
188,791
(250,000)
(250,000)
(61,209)
-
Totals
(Memorandum Only)
(10,446,788)(10,507,997)(61,209)
Budget
52,312,750
8,623,648
3,207,000
6,112,000
846,000
3,346,078
2,100,000
2,739,000
209,855
1,458,068
80,954,399
11,016,134
22,811,048
14,183,020
10,758,447
19,755,164
297,841
1,406,378
80,228,032
726,367
7,500
(11,740,854)
-
(11,733,354)
(11,006,987)
73,297,312
(600,000)
61,690,325
Actual on
Budgetary
Basis
53,191,375
8,880,012
3,320,851
5,552,501
839,831
3,912,999
2,006,923
3,281,059
561,208
944,139
82,490,898
7,759,169
22,372,947
12,125,060
9,641,221
18,903,607
297,841
1,398,407
72,498,252
9,992,646
2,008,353
(12,902,156)
99,341
(10,794,462)
(801,816)
73,297,312
(600,000)
71,895,496
Variance-
Over
(Under)
878,625
256,364
113,851
(559,499)
(6,169)
566,921
(93,077)
542,059
351,353
(513,929)
1,536,499
(3,256,965)
(438,101)
(2,057,960)
(1,117,226)
(851,557)
_
(7,971)
(7,729,780)
9,266,279
2,000,853
(1,161,302)
99,341
938,892
10,205,171
-
-
10,205,171
51
CITY OF CARLSBAD
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings - All Proprietary Fund Types
Year Ended June 30, 2000
Operating revenues:
Water sales
Sewer services charges
Other charges for services
Contributions from other
government agencies
Miscellaneous
Total operating revenues
Operating expenses:
Sewer 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 disposition of assets
Property taxes
Amortization of issuance costs
Total nonoperating revenues
(expenses)
Net income (loss)
Retained earnings at beginning of year
Retained earnings at end of year
Enterprise
$17,214,308
5,333,786
1,519,934
502,682
1,289,617
25,860,327
2,004,493
11,035,042
2,813,638
-
-
7,317,674
23,170,847
2,689,480
4,480,868
(932,189)
8,655
1,155,311
(13,762)
4,698,883
7,388,363
63,450,511
$70,838,874
Internal
Service
.
-
8,648,350
_
382,674
9,031,024
-
1,344,549
431,949
4,385,019
3,139,262
9,300,779
(269,755)
617,484
-
14,921
-
-
632,405
362,650
7,814,391
8,177,041
Totals
(Memorandum Only)
17,214,308
5,333,786
10,168,284
502,682
1,672,291
34,891,351
2,004,493
11,035,042
4,158,187
431,949
4,385,019
10,456,936
32,471,626
2,419,725
5,098,352
(932,189)
23,576
1,155,311
(13,762)
5,331,288
7,751,013
71,264,902
79,015,915
See accompanying notes to general purpose financial statements.
52
CITY OF CARLSBAD
Combined Statement of Cash Flows - All Proprietary Fund Types
Year Ended June 30, 2000
Enterprise Internal Service
Totals
(Memorandum Only)
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 items
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) hi deferred revenue
Increase (decrease) hi 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
$ 2,689,480
2,813,638
(648,086)
58,214
(38,927)
(4,350)
1,127,397
10,903
(362,022)
(32,000)
(428,744)
(104,515)
5,080,988
1,118,276
(161,665)
956,611
(7,017,224)
(1,736,127)
(778,427)
1,155,311
7,846,800
(529,667)
4,361,361
4,361,361
9,869,293
87,121,760
$ 96,991,053
(269,755)
1,344,549
9,181
-
3,420
(35,280)
(172,152)
-
-
529,386
-
-
1,409,349
-
(1,496,902)
-
-
-
-
(1,496,902)
617,484
617,484
529,931
12,130,377
12,660,308
2,419,725
4,158,187
(638,905)
58,214
(35,507)
(39,630)
955,245
10,903
(362,022)
497,386
(428,744)
(104,515)
6,490,337
1,118,276
(161,665)
956,611
(8,514,126)
(1,736,127)
(778,427)
1,155,311
7,846,800
(2,026,569)
4,978,845
4,978,845
10,399,224
99,252,137
109,651,361
(Continued)
53
CITY OF CARLSBAD
Combined Statement of Cash 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 $ 96,968,929 12,660,308 109,629,237
Restricted assets - cash and investments 1,715,830 - 1,715,830
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 $ 96,991,053 12,660,308 109,651,361
Supplemental schedule of noncash investing,
capital and financing activities:
Capital assets contributed by (to) other funds $ 6,355,946 1,237,863 7,593,809
See accompanying notes to general purpose financial statements.
54
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
Year Ended June 30, 2000
(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. 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, vehicle license fees, 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, 2000, 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, a portion of its 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
The deferred revenue reported in the City's financial statements represent money
received during the current or previous fiscal years that has not been earned by the
City as of the end of the fiscal year. These monies will be recognized as revenues
in subsequent fiscal years, once the revenue has been earned.
(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, and capital lease expenditures for newly entered lease agreements.
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:
Special Debt
General Revenue Service
Fund Funds Funds
Fund balances-budgetary basis $52,975,500 29,427,993 (10,507,997)
Encumbrances outstanding at year-end 2,236,970 535,753
Fund balances designated for
continuing appropriations 1,131,811 4,164,612
Earned leave at year-end 242,355 8,840
Capital lease expenditures (83,867) (3,624)
Fund balances of unbudgeted funds - - 944,877
Fund balances - GAAP basis S56.5Q2.769 34.133.574
(3) Cash and Investments
Each participating fund's portion of the City's cash and investment pool is displayed on
the combined balance sheet as "Cash and investments." This category also includes cash
and investments that are held separately by several of the City's funds.
Authority for Deposits and Investments:
The City's investment policy and state statutes authorize the City to invest in obligations
of the U.S. 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 and not to exceed 15% of the portfolio; banker's
acceptances with a maximum maturity of 270 days and not to exceed 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 $328,992,424
Restricted assets:
Cash and investments 1,715,830
S33Q.7Q8.254
Cash and investments held by the City at June 30, 2000 consisted of the following:
Cash on hand (petty cash) $ 5,752
Deposits 5,531,392
Investments 325.171.110
Total cash and investments S330.708.254
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, 2000.
Category Bank Carrying
Form of Deposit 1 23 Balance Amount
Demand deposits $300,000 1,336,024 - 1,636,024 1,923,221
Bank investment contracts - 3.608.171 - 3.608.171 3.608.171
- 5.244.195 5.531.392
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 $ 10,018,159 - - 10,018,159
United States Government
agency obligations 206,630,874 - - 206,630,874
Corporate notes 80,879,815 - - 80,879,815
Commercial paper 8.804.520 - - 8.804.520
S306.333.368 =^= - 306,333,368
Investments not subject to categorization:
Investment in Local Agency Investment Fund (a) 15,512,501
Investment in mutual funds 178,435
Investment contracts (b) 3,146,806
S325.171.11Q
(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
66
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(3) Cash and Investments, (Continued)
floating rate securities issued by federal agencies, government-sponsored
enterprises, and corporations.
(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, 2000:
General
Special Revenue Funds:
Low/Moderate Income Housing
Federal Grants
Section 8 Housing Authority
Senior Nutrition
State Grants
Capital Projects Funds:
State Grants
Federal Grants
Totals
Due From
Other Funds
$ -
19,380
6,842
111,500
22,538
27,672
3,974
126.891
S318.797
Due To
Other Funds
318,797
318.797
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, 2000:
Advances From Advances To Amount
General Fund Capital Projects Fund:
Park Development Fund $ 3,550,000
Redevelopment Area 2 213,999
General Fund Debt Service Funds:
Redevelopment Area 1 11,562,749
General Fund Special Revenue:
Low/Moderate Income Housing 445,974
General Fund Enterprise Funds:
Golf Course Fund 2,737,200
Special Revenue Fund Capital Projects Funds:
Gas Tax BTD#3 2,000,000
Capital Projects Fund Capital Projects Funds:
General Capital Construction Park Development NW Quadrant 860,000
BID #4 350,000
BTD #5 790.854
Total advances S22.510.776
(6) General Fixed Assets
A summary of changes in the general fixed assets account group is as follows:
Balance at Balance at
July 1. 1999 Additions Deletions June 30. 2000
Land $32,874,905 5,139,940 - 38,014,845
Buildings 27,683,709 20,069,755 - 47,753,464
Improvements 4,392,813 6,070,722 - 10,463,535
Furniture and equipment 6,315,571 5,399,537 (434,747) 11,280,361
Construction in progress 20.378.055 12.820.458 (31.693.396) 1.505.117
Total S91.645.053 49.500.412 (32.128.143) 109.017.322
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
Leo Carrillo Park (Phase I)
ADA -Northwest Quadrant Parks
Public Art -Maxton Brown Park
Public Service Center
Safety Center Conference Center Improvements
Safety Center Building Improvements
Police/Fire Cad Implementation
Police Training Range Relocation
Fire Station #5 Storage Building
Business Park Recreational Facility
Chase Field Bathrooms/Snack Bar
Project
Authorization
$ 600,000
1,325,000
50,000
25,000
968,000
its 165,000
50,000
2,000,000
500,000
135,000
40,800
160,000
Expended
Balance at
June 30. 2000
323,637
753,104
25,239
5,123
179,211
13,014
18,382
123,653
34,764
7,208
13,511
8,271
Committed
276,363
571,896
24,761
19,877
788,789
151,986
31,618
1,876,347
465,236
127,792
27,289
151,729
Totals S6.018.800 1.505.117
(7) Fixed Assets - Proprietary Funds
A summary of proprietary fund type fixed assets at June 30, 2000 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
$ 7,212,043
7,246,703
27,707,752
45,866,354
33,320,340
34,615,004
1,861,371
11.560.405
169,389,972
(36,579,028)
$132.810.944
12,615,221
12,615,221
(6,093,232)
6.521.989
69
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(7) Fixed Assets - Proprietary Funds, (Continued)
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, 2000.
The Enterprise funds had various construction contracts in progress at June 30, 2000 with
an estimated cost to complete of approximately $27,952,000.
(8) Obligations Under Capital Leases
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 Regional Communications System. 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 inter and intra-agency communications in the future.
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, 2000, 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. The unpaid principal
amount as of June 30, 2000 is $597,356.
The City has entered into several office equipment lease-purchase agreements with
various vendors. As of June 30, 2000, the City has purchased office equipment, totaling
$342,819. All lease terms are for 60 months, with interest rates ranging from 5.56% to
10.16%. The unpaid principal balances total $306,828 as of June 30, 2000.
70
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(8) Obligations Under Capital Leases, (Continued)
Minimum future lease payments under the capital lease as of June 30, 2000 are:
2001 $ 157,790
2002 157,790
2003 157,790
2004 157,790
2005 122,387
Subsequent to 2005 475.591
Total minimum future lease payments 1,229,138
Less amounts representing stated or implicit interest (324,955)
Present value of future lease payments $ 904.183
(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, 2000 are:
2001 $ 65,985
2002 69,944
2003 74,140
2004 78,589
2005 83,304
Subsequent to 2005 281.121
Total minimum future rental payments $653,083
In October, 1998, the City entered into an agreement to lease a 68,000 square foot office
building for the community development, administrative and public works departments.
The lease requires monthly rental payments of $74,816 for ten years commencing
November 16, 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.
71
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(9) Obligations Under Operating Leases, (Continued)
Minimum future rental payments under the operating lease as of June 30, 2000 are:
2001 $ 897,798
2002 897,798
2003 897,798
2004 897,798
2005 897,798
Subsequent to 2005 3.965,275
Total minimum future rental payments $8.454.265
(10) Long-Term Debt
The following is a summary of changes in the principal balance of long-term debt for the
year ended June 30, 2000:
Principal Principal
Balance at Balance at
July 1. 1999* Additions Reductions June 30. 2000
General long-term debt account group:
Bonds $14,460,000 - 290,000 14,170,000
Certificates of participation 6,075,000 - 505,000 5,570,000
HUD Section 108 Loan 749,950 - 130,000 619,950
Obligations under capital leases 632.947 306.828 35.592 904.183
Total general long-term debt $21.917.897 306.828 960.592 21.264,133
Enterprise funds:
Certificates of participation $ 5,405,000 - 995,000 4,410,000
Installment purchase agreement 10,250,000 - 440,000 9,810,000
Loan payable 1,896,950 - 104,515 1,792,435
Accrued assessments 1.252.172 - 301.128 951.044
Total enterprise funds $18.804.122 - 1.840.643 16.963.479
* Advances to the Carlsbad Redevelopment Agency at July 1, 1999 of $10,956,160 were
restated and reported as a liability on the balance sheet of the debt service funds of the
Agency, which are the funds obligated to repay such advances.
72
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt, (Continued)
Long-term debt at June 30, 2000 is comprised of the following issues:
Balance at
General Long-Term Debt June 30. 2000
1993 Carlsbad Housing and Redevelopment Commission Tax Allocation
Bonds, principal due in amounts ranging from $305,000 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. $14,170,000
1997 Hosp Grove Refunding Certificates of Participation, principal due in
amounts ranging from $515,000 to $735,000 on August 1 of each year
through 2009, interest payable on August 1 and February 1 at rates varying
from 4.00% to 4.70% per annum. Payable from the General Fund, with a
required reserve amount of $659,500. 5,570,000
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 $140,000 to
$170,000 on August 1 of each year through 2004. Interest payable on
August 1 and February 1 at rates varying from 8.15% to 8.27% per annum.
Payable from future CDBG entitlements. 619,950
Obligations under capital leases (note 8) 904.183
Total General Long-Term Debt S21.264.133
Enterprise Fund Long-Term Debt
1997 Carlsbad Municipal Water District Refunding Certificates of
Participation, principal due in varying amounts ranging from $1,040,000
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 4.10% to 4.40%
per annum. The required reserve amount is $740,000. $4,410,000
Encina Financing Joint Powers Authority (EFJPA) Installment Purchase
Agreement, principal due in varying amounts ranging from $460,000 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 4.15% to 5.5%
per annum. The required reserve amount is $942,026. 9,810,000
73
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt, (Continued)
Balance at
June 30. 2000
1993 Carlsbad Municipal Water District loan agreement with the State
Water Resources Control Board. Principal is due in varying amounts
ranging from $107,546 to $151,558 on November 30 of each year through
2013, interest payable on November 30 of each year at 2.9% per annum. 1,792,435
In December of 1994, the Golf Course Enterprise Fund purchased land
with accrued assessments. Principal is due in varying amounts ranging
from $161,614 to $196,925 in 2004-05. The 2005-06 principal amount of
$206,432 will be reduced by a reserve fund credit of $146,304 which is
already reflected on the City's books. 951,044
Subtotal enterprise funds 16,963,479
Less unamortized discounts, issuance costs and deferred charges (1,035,378)
Less current portion (1.769,160)
Total Enterprise Fund Long-Term Debt 114.158.941
74
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(10) Long-Term Debt, (Continued)
Debt service requirements to maturity for general long-term debt are as follows:
2001
2002
2003
2004
2005
2006-2010
2011-2015
2016-2020
2021-2024
Tax
Allocation
Bonds
$ 1,042,771
1,046,234
1,043,777
1,045,403
1,045,977
5,212,288
5,195,394
5,175,825
4,110,582
Certificates
of
Participation
748,655
752,285
754,350
754,800
758,475
3,000,603
-
-
-
HUD
Section
108 Loan
185,278
183,408
180,651
176,980
-
-
-
-
-
Totals
1,976,704
1,981,927
1,978,778
1,977,183
1,804,452
8,212,891
5,195,394
5,175,825
4,110,582
Less amounts
representing
interest
24,918,251
(10,748,251)
Total general
long-term debt S14.170.000
6,769,168 726,317 32,413,736
(12,053,786)
20.359.950
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
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 - 939,581 159,527
2006-2010 - 4,676,020 797,635
2011-2015 - 4,651,966 604,480
Golf Course
Accrued
Assessments
214,099
213,617
215,377
215,163
287,651
Totals
2,543,302
2,535,315
2,530,963
2,537,646
1,386,759
5,473,655
5,256.446
4,894,220 14,024,209 2,199,750
Less amounts
representing
interest (484,220)
Total enterprise
fund debt S4.410.000
(4,214,209) (407,315)
9.810.000
1,145,907 22,264,086
(194.863) (5.300,607)
951.044 16.963.479
(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) Special Assessment Bonds Without Government Commitment
As of June 30, 2000, the City has seven series of Assessment District Bonds outstanding
in the amount of $44,273,515. 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.
(13) 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, 2000 is $22,245,000. 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.
(14) 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.
77
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(15) Fund Balances/Retained Earnings
The following is a summary of reserved and unreserved fund balances and retained
earnings as of June 30, 2000:
Governmental Fund Types
Special Debt Capital
Fund Balances General Revenue Service Projects
Reserved for:
Loans receivable $ 269,496 7,399,340
Inventory 41,286
Prepaid items 28,655 171,499 - 218,095
Debt service - - 1,528,500
Advances to other funds * 11,022,264 2,000,000 - 2,000,854
Low and moderate income housing - 3,569,187
Habitat mitigation 725,423
Encumbrances 2,236,970 535,753 - 10.235.009
Subtotal 14.324.094 13.675.779 1.528.500 12.453.958
Unreserved:
Designated for approved capital projects - 3,995,256 - 72,655,129
Designated for continuing
appropriations 1,131,811 169,356 - 34,067,396
Undesignated 41.046.864 16.293.183 (11.091.620) 2.143.338
Subtotal 42.178.675 20.457.795 (11.091.620) 108.865.863
Total fund balances S56.502.769 34.133.574 (9.563.120) 121.319.821
* Only reflects that portion of fund balance invested in interfund advances (the General
fund amount is net of $7,487,658 in deferred revenue for measurable but unavailable
interest earned on such advances).
Proprietary Fund Types
Internal
Retained Earnings Enterprise Service
Reserved for debt service $ 1,682,026
Unreserved 69.156.848 8.177.041
Total retained earnings S7Q.838.874 8.177.041
78
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(15) Fund Balances/Retained Earnings, (Continued)
Reserves for loan receivables, inventory, prepaid items 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.
(16) Accumulated Fund Deficits
The following funds reported deficits in fund balances or retained earnings as of June 30,
2000:
Deficit Balance
Debt Service Funds:
Village Redevelopment Area $(10,507,997)
Enterprise Funds:
Golf Course (1,011,830)
Internal Service Funds:
Health Insurance (201,642)
79
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(17) Changes in Contributed Capital
Contributed capital at July 1, 1999
Additions:
Cash - connection fees
Cash - from other funds
Cash - other sources
Fixed assets
Contributed capital at June 30, 2000
Enterprise
$122,550,997
7,310,924
600,000
535,873
6,355.949
S137.353.743
Internal
Service
7,577,556
1.237.863
8.815.419
(18) Residual Equity Transfers
Residual equity transfers are nonrecurring or non-routine transfers of equity between
funds. During the year ended June 30, 2000, the General fund contributed capital in the
amount of $600,000 to the enterprise Golf Course fund for start-up costs. The transfer is
shown as a residual equity transfer in the General fund.
(19) Risk Management
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.
Since July 1, 1999, the City has been a 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,
2000, the unencumbered fund equity for the Risk Management Self-Insurance fund was
approximately $2,900,000.
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
80
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(19) Risk Management (Continued)
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.
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.
The estimated claims payable reported at June 30, 2000 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 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 1999 and 2000 for the
three internal service funds are as follows:
Claims
Expense and
Beginning Changes in Claim
Balance Estimates Payments
Ending
Balance
Health Insurance fund:
1998-99
1999-00
Risk Management fund:
1998-99
1999-00
Workers' Compensation fund:
1998-99
1999-00
$332,000 1,491,618 (1,481,262) 342,356
342,356 1,599,063 (1,557,020) 384,399
228,890
137,232
697,300
833,745
86,132
531,672
622,240
594,164
(177,790)
(45,318)
(485,795)
(593,175)
137,232
623,586
833,745
834,734
81
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(20) Joint Ventures
Encina Water Pollution Control Facility:
The Encina Water Pollution Control Facility (the Facility) is a sewer facility 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 a joint powers authority established to operate and administer the
facility. It is responsible for the management, maintenance and operations of the joint
system. Ownership interests in the facility are determined by joint agreement at the time
the assets are acquired. As of June 30, 1999, 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 latest available financial statements of the EWA, dated June 30, 1999, show the
following:
Total assets $134,683,355
Total liabilities 566,262
Fund balance $134.117.093
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
$27,683 in fiscal year 1999. 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)
(20) Joint Ventures
Encina Water Pollution Control Facility:
The Encina Water Pollution Control Facility (the Facility) is a sewer facility 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 a joint powers authority established to operate and administer the
facility. It is responsible for the management, maintenance and operations of the joint
system. Ownership interests in the facility are determined by joint agreement at the time
the assets are acquired. As of June 30, 1999, 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 latest available financial statements of the EWA, dated June 30, 1999, show the
following:
Total assets $134,683,355
Total liabilities 566.262
Fund balance $134.117.093
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
$27,683 in fiscal year 1999. The financial statements of the EWA can be obtained at
6200 Avenida Encinas, Carlsbad, California 92009.
83
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(20) 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, 2000 by each member.
Installment
Member Agreement Balance
City of Carlsbad $ 9,810,000
Leucadia County Water District 6,690,000
City of Vista
Buena Vista Sanitation District -
S16.500.000
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.
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(20) 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.
(21) 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.
(22) 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, 2000 was $2,148,775. The City is required to contribute at an
actuarially determined rate. For the year ended June 30, 2000, the employer contribution
rate for the City of Carlsbad (as a percentage of covered payroll) was 5.144% for safety
employees and 2.453% for miscellaneous employees. The contribution requirements of
plan members and the City are established by PERS.
85
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(22) Retirement Plan. (Continued)
Annual Pension Cost
For 2000, the City's annual pension cost (employer contribution) of $525,164 for safety
and $437,978 for miscellaneous to PERS was equal to the City's required and actual
contributions. For 2000, the member contributions paid by the City were $917,624 for
safety and $1,231,151 for miscellaneous. The required contribution was determined as
part of the June 30, 1997, actuarial valuation using the entry age normal actuarial cost
method. The actuarial assumptions included (a) 8.25% 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 3.5%. 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, 2000
is through June 30, 2018; for safety employees at June 30, 2000, it is through June 30,
2013.
Three-Year Trend Information for PERS (Safety)
Annual Pension
Fiscal Year Cost (Employer Percentage of Net Pension
Ending Contribution) APC Contributed Obligation
6/30/98 $827,859 100% $ 0
6/30/99 851,610 100% 0
6/30/00 917,624 100% 0
Three-Year Trend Information for PERS (Miscellaneous)
Annual Pension
Fiscal Year Cost (Employer Percentage of Net Pension
Ending Contribution) APC Contributed Obligation
6/30/98 $1,097,506 100% $ 0
6/30/99 1,121,580 100% 0
6/30/00 1,231,151 100% 0
86
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(22) Retirement Plan, (Continued)
Required Supplementary Information
Funded Status of Plan (Safety)
Valuation Date
6/30/96
6/30/97
6/30/98
Entry Age
Normal
Accrued
Liability
Actuarial
Value
of Assets
Unfunded
Liability/
(Excess Assets)
$43,249,171
45,646,733
53,527,398
44,921,453
53,055,298
63,822,496
(1,672,282)
(7,408,565)
(10,295,098)
Funded Status
103.9%
116.2%
119.2%
Annual
Covered
Payroll
8,004,014
8,438,265
9,021,054
UAAL
As a % of
Payroll
(20.893%)
(87.797%)
(114.123%)
Funded Status of Plan (Miscellaneous)
Valuation Date
6/30/96
6/30/97
6/30/98
Entry Age
Normal
Accrued
Liability
Actuarial
Value
of Assets
Unfunded
Liability/
(Excess Assets)
$49,062,007
51,842,297
56,210,285
50,057,957
60,367,455
72,756,235
(995,950)
(8,525,158)
(16,555,950)
Funded Status
102.0%
116.4%
129.4%
Annual
Covered
Payroll
14,139,219
14,995,218
15,687,958
UAAL
As a % of
Payroll
(7.044%)
(56.853%)
(105.469%)
(23) 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.
87
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(24) 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, thirteen 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
$42,500 were charged to expense for post-retirement health care costs during 1999-2000.
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.
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(25) 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, 2000 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
$
$
$
$
$
$
$
$1
Carlsbad
Municipal
Water
District
19,009,291
1,441,055
16,792,944
775,292
1,155,311
1,639,056
3.569.659
59,428,916
7,499,696
66.928.612
4.213.241
38.713.423
4.850.772
13,722,986
10,323,623
Golf
Course
199,021
(199,021)
161,008
(38.013)
6,865,190
600,000
7.465.190
1.002.469
2.186.678
3.526.630
10,166,107
3,712,747
Sewer
6,231,467
1,372,093
3,217,059
1,642,315
1,614,431
3.256.746
56,253,470
6,703,050
62.956.520
1.973.923
48.461.670
10.009.242
108,832,116
13,435,440
Solid
Waste
619,569
490
148,185
470,894
129,077
3,421
-LB1
2.941.993
3,154,969
211.751
Totals
25,860,327
2,813,638
20,357,209
2,689,480
1,155,311
3,543,572
7.388.363
122,550,997
14,802,746
137.353.743
7.189.633
92.303.764
18.386.644
235,876,178
27,683,561
Total equity S103.399.363 6.453.360 95.396.676 2.943.218 208.192.617
89
CITY OF CARLSBAD
Notes to General Purpose Financial Statements
(Continued)
(26) 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.
(27) Restatement of Prior Year Fund Balances
Effective July 1, 1999, the City has changed the manner in which it accounts for advances
from the City to the Redevelopment Agency. Previously, such advances were recorded in
the General Long-term Debt Account Group.
Effective July 1, 1999, such advances have been reported as a liability on the balance
sheet of the funds obligated for the repayment of such advances, the debt service funds of
the Agency. The cumulative effect of this accounting change upon the opening balance
of fund balance of those funds is as follows:
Debt Service Funds
Fund balances at July 1,1999 $1,819,766
Reclassification of advance previously reflected
in the general long-term debt account group (10,956,160)
Fund balance at July 1, 1999, as restated S (9.136.394)
90
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
Public Safety
Community
Development
Administrative
Services Community
Services
Policy/Leadership
Group
91
CITY OF CARLSBAD
General Fund
Schedule of Revenues - Budget and Actual
Budgetary Basis
Year Ended June 30, 2000
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Business license taxes
Real property transfer taxes
Total taxes
Intergovernmental:
Vehicle license fees
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
$ 16,900,000
18,955,000
7,900,000
2,545,000
1,829,000
1,100,000
49,229,000
3,600,000
279,000
770,000
4,649,000
2,180,000
1,027,000
3,207,000
500,000
1,485,000
1,400,000
1,000,000
1,117,000
550,000
6,052,000
816,000
2,350,000
2,100,000
1,000,000
Actual on
Budgetary
Basis
16,762,040
19,493,247
8,333,196
2,591,779
1,863,514
993,026
50,036,802
3,793,919
288,358
821,247
4,903,524
2,156,584
1,164,267
3,320,851
563,372
1,421,681
1,114,900
931,045
888,477
579,302
5,498,777
770,949
2,226,973
2,006,923
597,693
Variance-
Over
(Under)
(137,960)
538,247
433,196
46,779
34,514
(106,974)
807,802
193,919
9,358
51,247
254,524
(23,416)
137,267
113,851
63,372
(63,319)
(285,100)
(68,955)
(228,523)
29,302
(553,223)
(45,051)
(123,027)
(93,077)
(402,307)
$ 69,403,000 69,362,492 (40,508)
92
CITY OF CARLSBAD
General Fund
Schedule of Expenditures - Budget and Actual
Budgetary Basis
Year Ended June 30, 2000
General government:
Policy and leadership group:
City council
City manager
City clerk
City attorney
City treasurer
Total policy and leadership group
Administrative services:
Administration
Finance
Purchasing
Human resources
Records management
Non-departmental
Total administrative services
Total general government
Public safety:
Police protection
Fire protection
Total public safety
Community development:
Administration
Hiring center
Geographic information systems
Economic development
Community promotion
Planning
Building inspection
Total community development
Community services:
Library
Cultural arts
Park planning/recreation
Senior programs
Total community services
Public works:
Administration
Engineering
Park maintenance
Street and signal maintenance
Facilities maintenance
Traffic sign maintenance
Total public works
Debt service
Total expenditures
Budget
$ 243,840
1,094,695
245,502
745,803
136,140
2,465,980
324,005
1,487,542
545,319
1,790,736
1,679,500
2,697,052
8,524,154
10,990,134
13,168,868
8,961,189
22,130,057
572,351
80,070
349,544
182,629
520,824
2,633,391
1,826,978
6,165,787
5,048,136
593,610
3,384,581
393,742
9,420,069
700,104
5,184,413
2,671,322
2,443,828
1,858,806
493,643
13,352,116
11,038
Actual on
Budgetary
Basis
229,430
1,018,755
229,476
745,803
114,911
2,338,375
266,363
1,340,066
463,268
1,240,096
1,621,116
474,563
5,405,472
7,743,847
13,091,129
8,737,115
21,828,244
516,172
76,673
325,843
168,614
503,148
2,450,900
1,801,399
5,842,749
4,253,036
563,934
3,273,677
341,278
8,431,925
667,257
5,163,919
2,391,357
2,060,800
1,784,446
434,362
12,502,141
11,038
Variance
Over
(Under)
(14,410)
(75,940)
(16,026)
-
(21,229)
(127,605)
(57,642)
(147,476)
(82,051)
(550,640)
(58,384)
(2,222,489)
(3,118,682)
(3,246,287)
(77,739)
(224,074)
(301,813)
(56,179)
(3,397)
(23,701)
(14,015)
(17,676)
(182,491)
(25,579)
(323,038)
(795,100)
(29,676)
(110,904)
(52,464)
(988,144)
(32,847)
(20,494)
(279,965)
(383,028)
(74,360)
(59,281)
(849,975)
0
$ 62,069,201 56,359,944 (5,709,257)
93
CITY OF CARLSBAD
General Fund
Comparative Schedule of Revenues
For the Years Ended June 30, 1999 and 2000
1999 2000 Increase
Actual Actual (Decrease)
Taxes:
Property taxes $14,196,095 16,762,040 2,565,945
Sales and use taxes 17,129,474 19,493,247 2,363,773
Transient occupancy taxes 7,010,249 8,333,196 1,322,947
Franchise taxes 1,954,185 2,591,779 637,594
Business license taxes 1,737,850 1,863,514 125,664
Real property transfer taxes 1,080,646 993,026 (87,620)
Total taxes 43,108,499 50,036,802 6,928,303
Intergovernmental:
Vehicle license fees 3,264,818 3,793,919 529,101
Homeowners exemptions 251,204 288,358 37,154
Other 364,889 821,247 456,358
Total intergovernmental 3,880,911 4,903,524 1,022,613
Licenses and permits:
Building permits 2,524,063 2,156,584 (367,479)
Other 1,302,623 1,164,267 (138,356)
Total licenses and permits 3,826,686 3,320,851 (505,835)
Charges for services:
Planning fees 815,375 563,372 (252,003)
Building department fees 1,656,345 1,421,681 (234,664)
Engineering fees 1,700,756 1,114,900 (585,856)
Ambulance fees 858,112 931,045 72,933
Recreation fees 1,057,717 888,477 (169,240)
Other 498,133 579,302 81,169
Total charges for services 6,586,438 5,498,777 (1,087,661)
Fines and forfeitures 804,258 770,949 (33,309)
Income from property and investments 1,992,453 2,226,973 234,520
Interdepartmental charges 1,933,820 2,006,923 73,103
Miscellaneous 1,190,009 597,693 (592,316)
Total revenues $ 63,323,074 69,362,492 6,039,418
94
CITY OF CARLSBAD
General Fund
Comparative Schedule of Expenditures
For the Years Ended June 30, 1999 and 2000
General government:
Policy and leadership group:
City council
City manager
City clerk
City attorney
City treasurer
Total policy and leadership group
Administrative services:
Administration
Finance
Purchasing
Human resources
Records management
Non-departmental
Total administrative services
Total general government
Public safety:
Police protection
Fire protection
Total public safety
Community development:
Administration
Hiring center
Geographic information systems
Economic development
Community promotion
Planning
Building inspection
Total community development
Community services:
Library
Cultural arts
Park planning/recreation
Senior programs
Total community services
Public works:
Administration
Engineering
Park maintenance
Street and signal maintenance
Facilities maintenance
Traffic sign maintenance
Total public works
Debt service
Total expenditures
1999
Actual
$ 211,820
1,218,243
389,430
641,774
107,181
2,568,448
1,204,271
464,256
997,634
-
325,188
2,991,349
5,559,797
11,728,212
9,884,791
21,613,003
512,386
76,821
154,853
123,083
325,356
2,191,903
1,617,352
5,001,754
3,347,711
368,826
2,857,937
272,977
6,847,451
692,420
4,014,459
2,078,123
2,054,382
1,404,510
319,262
10,563,156
-
$ 49,585,161
2000
Actual
229,049
916,869
201,092
704,593
114,715
2,166,318
263,342
1,299,324
429,997
1,080,223
682,170
383,935
4,138,991
6,305,309
12,876,386
8,559,413
21,435,799
457,029
76,673
316,162
161,251
369,972
2,265,048
1,724,911
5,371,046
4,167,707
495,054
3,130,177
339,062
8,132,000
612,698
4,516,502
2,356,210
2,010,961
1,655,619
425,493
11,577,483
11,038
52,832,675
Increase
(Decrease)
17,229
(301,374)
(188,338)
62,819
7,534
(402,130)
263,342
95,053
(34,259)
69,077
682,170
58,747
1,147,642
745,512
1,148,174
(1,325,378)
(177,204)
(55,357)
(148)
161,309
38,168
44,616
73,145
107,559
369,292
819,996
126,228
272,240
66,085
1,284,549
(79,722)
502,043
278,087
(43,421)
251,109
106,231
1,014,327
11,038
3,247,514
95
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.
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.
Infrastructure Replacement
To account for funds set aside for the future repair and replacement of the City's base
infrastructure.
Low and Moderate Income Housing
To account for money administered by the Carlsbad Redevelopment Agency for designated low
and moderate income housing.
Other Funds
To account for any other funds received by the City whose expenditures are restricted by law or
administrative regulation to specified purposes.
96
SPECIAL REVENUE FUNDS (CONTINUED)
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.
Tyler Court Apartments
To account for revenues and expenditures from housing assistance through the Tyler Court
affordable senior apartments.
Community
Development
97
Assets
Cash and investments
Receivables:
Loans
Taxes
Accrued interest
Accounts, net
Due from other governments
Advances to other funds
Prepaid items
Total assets
Liabilities and Fund Balances
Liabilities:
Accrued liabilities
Due to other funds
Advances from other funds
Deposits payable
Due to other governments
Deferred revenue
Total liabilities
Fund balances:
Reserved for:
Loans receivable
Advances to other funds
Prepaid items
Low and moderate income
housing
Encumbrances
Unreserved:
Designated for continuing
appropriations
Undesignated
Total fund balances
Total liabilities and fund
balances
CITY OF CARLSBAD
Special Revenue Funds
Combining Balance Sheet
June 30,2000
Community
Affordable Development Donations
Housing Block Grant and Bequests
Federal Gas Infrastructure
Grants Tax Replacement
$ 4,870,966 7,796 6,926,985 38,290 6,332,160 2,056,779
4,842,007 5,568 ....
15,000 .....
574
$ 9,728,547
$ 12,419
1,067
13,486
4,842,007
574
3,569,187
28,896
1,274,397
9,715,061
17,385
409
31,158
18,666
4,222
22,888
5,568
409
85,096
(82,803)
8,270
454
6,927,439
24,099
300
51
24,450
454
9,901
31,595
6,861,039
6,902,989
2,000,000
38,290 8,332,160
3,202 52,531
6,842
-
10,044 52,531
2,000,000
23,258 241,805
3,888,475
4,988 2,149,349
28,246 8,279,629
-
2,056,779
-
-
.
-
-
2,056,779
2,056,779
$ 9,728,547 31,158 6,927,439 38,290 8,332,160 2,056,779
98
Low and
Moderate
Income
Housing
567,351
2,551,765
8,793
114
572
3,128,595
2,561
19,380
445,974
467,915
2,551,765
572
95
108,248
2,660,680
3,128,595
Police Section 8 Special Tyler
Other Asset Housing Senior Benefit State Court
Funds Forfeiture Authority Nutrition Districts Grants Apartments
406,120 407,915 426,441 68 2,908,634 504,939 162,304
21,267
7,570 - 10,254 8,000
199,352 37,943
169,490 ....
406,120 407,915 802,853 38,011 2,940,155 512,939 162,304
4,443 1,500 66,069 15,473 100,420 19,344
111,500 22,538 - 27,672
42,150 - - - 19,412
100,152 ....
257,704 ....
4,443 1,500 577,575 38,011 100,420 47,016 19,412
169,490 ....
30,778 665 450 25,774 89,035
106,781 81,721 - - - 56,040
294,896 293,916 55,123 (450) 2,813,961 320,848 142,892
401,677 406,415 225,278 - 2,839,735 465,923 142,892
406,120 407,915 802,853 38,011 2,940,155 512,939 162,304
Totals
25,616,748
7,399,340
30,060
114
40,824
254,680
2,000,000
171,499
35,513,265
320,727
187,932
445,974
61,862
105,441
257,755
1,379,691
7,399,340
2,000,000
171,499
3,569,187
535,753
4,164,612
16,293,183
34,133,574
35,513,265
99
CITY OF CARLSBAD
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2000
Community
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
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 debt
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 year
Affordable Development Donations Federal Gas Infrastructure
Housing Block Grant and Bequests Grants Tax Replacement
$
331,017
1,263,338
11,387
1,605,742
487,617
487,617
1,118,125
(1,000,000)
(1,000,000)
118,125
9,596,936
$ 9,715,061
1,422,773
478,695 ...
78,957 321,843 5,028 273,104 56,779
542,355
460,253
557,652 1,324,451 5,028 1,695,877 56,779
111,138
559,155 ...
338,308 939
513,215
559,155 338,308 112,077 513,215
(1,503) 986,143 (107,049) 1,182,662 56,779
2,000,000
(853) (7,500)
(853) (7,500) 2,000,000
(1,503) 986,143 (107,902) 1,175,162 2,056,779
9,773 5,916,846 136,148 7,104,467
8,270 6,902,989 28,246 8,279,629 2,056,779
100
Low and
Moderate Police Section 8
Income Other Asset Housing Senior
Housing Funds Forfeiture Authority Nutrition
346,360 ....
2,892,032 108,932
53,724
68,882
98,912 20,331 22,464 6,224
100,955
176 - - 5,935
445,448 74,055 91,346 2,904,191 209,887
145,581
2,126,426 - - 2,832,067
72,443 - - 209,887
... .
.
2,126,426 72,443 145,581 2,832,067 209,887
(1,680,978) 1,612 (54,235) 72,124
.
Special
Benefit
Districts
-
104,880
1,475,366
304,722
1,884,968
1,731,731
568
224
1,732,523
152,445
4,436
4,436
Tyler
State Court
Grants Apartments
496,829
22,986 298,138
8,000 6,887
527,815 305,025
106,868
162,133
334,687
.
-
441,555 162,133
86,260 142,892
-
Totals
1,769,133
3,976,488
53,724
68,882
1,640,663
3,281,059
561,208
337,107
11,688,264
363,587
6,167,398
956,264
2,244,946
568
224
9,732,987
1,955,277
2,000,000
(1,008,353)
4,436
996,083
(1,680,978) 1,612 (54,235) 72,124 156,881 86,260 142,892 2,951,360
4,341,658 400,065 460,650 153,154 2,682,854 379,663 31,182,214
2,660,680 401,677 406,415 225,278 2,839,735 465,923 142,892 34,133,574
101
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30, 2000
Affordable Housing Trust
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
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Actual on Variance-
Budgetary Over
Budget Basis (Under)
Community Development Block Grant
Actual on Variance-
Budgetary Over
Budget Basis (Under)
1,607,173 514,771 (1,092,402)
1,607,173 514,771 (1,092,402)
704,567 478,695 (225,872)
375,000
1,150,000
.
1,525,000
331,017
1,263,338
11,387
1,605,742
(43,983)
113,338
11,387
80,742
78,957
-
.
704,567 557,652
78,957
-
.
(146,915)
1,051,518 643,355 (408,163)
1,051,518 643,355 (408,163)
$ (82,173) 1,090,971 1,173,144 (346,951) (85,703) 261,248
102
Donations and Bequests Federal 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
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Budget
Actual on
Budgetary
Basis
Vanance-
Over
(Under)Budget
Actual on Variance-
Budgetary Over
Basis (Under)
8,600 321,843 313,243
542,355 542,355
108,900 460,253 351,353
5,028
117,500 1,324,451 1,206,951 5,028
5,028
5,028
270,224 134,396 (135,828)
495,707 379,804 (115,903) 939 939
495,707 379,804 (115,903) 271,163 135,335 (135,828)
(378,207) 944,647 1,322,854 (271,163) (130,307) 140,856
(Continued)
103
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30, 2000
Gas Tax
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
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Infrastructure Replacement
Budget
Actual on
Budgetary
Basis
Variance-
Over
(Under)Budget
Actual on
Budgetary
Basis
Variance-
Over
(Under)
$ 1,550,000 1,422,773
273,104
1,550,000 1,695,877
4,643,495 4,643,495
4,643,495 4,643,495
(127,227)
273,104
145,877
$ (3,093,495) (2,947,618) 145,877
56,779 56,779
56,779 56,779
56,779 56,779
104
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
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Low and Moderate Income Housing Other Funds
Budget
50,000
Actual on Vanance-
Budgetary Over
Basis (Under)Budget
Actual on Vanance-
Budgetary Over
Basis (Under)
303,750 346,360 42,610
60,000
98,912
176
48,912
176
2,168,769 2,126,521 (42,248)
53,724 (6,276)
400 20,331 19,931
353,750 445,448 91,698 60,400 74,055 13,655
197,118 179,224 (17,894)
2,168,769 2,126,521 (42,248) 197,118 179,224 (17,894)
(1,815,019) (1,681,073) 133,946 (136,718) (105,169) 31,549
(Continued)
105
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30, 2000
Police Asset Forfeiture Section 8 Housing
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
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Budget
$
30,000
10,000
-
40,000
Actual on
Budgetary
Basis
-
68,882
22,464
-
91,346
Variance-
Over
(Under)
-
38,882
12,464
-
51,346
Budget
2,878,395
-
10,000
175,000
3,063,395
Actual on
Budgetary
Basis
2,892,032
-
6,224
5,935
2,904,191
Variance-
Over
(Under)
13,637
-
(3,776)
(169,065)
(159,204)
258,540 258,080
258,540 258,080
(460)
3,000,645 2,835,531 (165,114)
(460) 3,000,645 2,835,531 (165,114)
$(218,540) (166,734) 51,806 62,750 68,660 5,910
106
Senior Nutrition Special Benefit Districts
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
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Budget
108,897
-
100,955
209,852
209,958
_
-
209,958
(106)
Actual on Variance-
Budgetary Over
Basis (Under)
108,932 35
-
100,955
209,887 35
210,115 157
.
-
210,115 157
(228) (122)
Budget
-
128,000
1,589,000
278,268
1,995,268
1,759,553
568
224
1,760,345
234,923
Actual on
Budgetary
Basis
-
104,880
1,475,366
304,722
1,884,968
1,757,971
568
224
1,758,763
126,205
Vanance-
Over
(Under)
-
(23,120)
(113,634)
26,454
(110,300)
(1,582)
.
-
(1,582)
(108,718)
(Continued)
107
CITY OF CARLSBAD
Special Revenue Funds
Combining Schedule of Revenues and Expenditures - Budget and Actual (Budgetary Basis)
Year Ended June 30, 2000
State 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 safely
Community development
Community services
Public works
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Tyler Court Apartments
Budget
11,700
Actual on Variance-
Budgetary Over
Basis (Under)
Actual on Variance-
Budgetary Over
Budget Basis (Under)
282,789 496,829
22,986
8,000
214,040
11,286 362,378 298,138 (64,240)
8,000 4,800 6,887
152,227 152,227
434,656 439,214 4,558
586,883 591,441 4,558 189,128 162,133
2,087
294,489 527,815 233,326 367,178 305,025 (62,153)
189,128 162,133 (26,995)
(26,995)
$(292,394) (63,626) 228,768 178,050 142,892 (35,158)
108
Totals
Budget
1,853,750
3,974,648
60,000
30,000
956,078
2,739,000
209,855
458,068
10,281,399
680,991
8,017,233
1,338,378
6,403,048
568
224
16,440,442
Actual on
Budgetary
Basis
1,769,133
3,976,488
53,724
68,882
1,640,663
3,281,059
561,208
337,107
11,688,264
544,703
6,282,311
1,209,296
6,401,466
568
224
14,438,568
Variance-
Over
(Under)
(84,617)
1,840
(6,276)
38,882
684,585
542,059
351,353
(120,961)
1,406,865
(136,288)
(1,734,922)
(129,082)
(1,582)
(2,001,874)
(6,159,043)(2,750,304)3,408,739
(Concluded)
109
110
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
CITY OF CARLSBAD
Debt Service Funds
Combining Balance Sheet
June 30, 2000
Assets
Cash and investments
Receivables:
Taxes
Accrued interest
Total assets
Liabilities
Advances from other funds
Total liabilities
Fund Balances
Reserved for debt service
Unreserved:
Designated for future debt service
Undesignated
Total fund balances
Total liabilities and fund balances
Hosp Grove
COPs
$ 929,088
15,789
$ 944,877
$
.
659,500
285,377
944,877
$ 944,877
Village
Redevelopment
Area
1,019,122
35,173
457
1,054,752
11,562,749
11,562,749
869,000
(11,376,997)
(10,507,997)
1,054,752
Totals
1,948,210
35,173
16,246
1,999,629
11,562,749
11,562,749
1,528,500
285,377
(11,376,997)
(9,563,120)
1,999,629
112
CITY OF CARLSBAD
Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2000
Revenues:
Taxes
Income from property and
investments
Miscellaneous
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
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, as restated
Fund balances at end of year
Village
Hosp Grove Redevelopment
COPs Area
$ - 1,385,440
43,930 45,363
9,339
43,930 1,440,142
15,322
505,000 290,000
256,058 1,394,418
761,058 1,699,740
(717,128) (259,598)
800,000
(250,000)
800,000 (250,000)
82,872 (509,598)
862,005 (9,998,399)
Totals
1,385,440
89,293
9,339
1,484,072
15,322
795,000
1,650,476
2,460,798
(976,726)
800,000
(250,000)
550,000
(426,726)
(9,136,394)
$ 944,877 (10,507,997) (9,563,120)
113
CITY OF CARLSBAD
Debt Service Fund
Village Redevelopment Area
Schedule of Revenues and Expenditures
Budget and Actual (Budgetary Basis)
Year Ended June 30, 2000
Revenues:
Taxes
Income from property and
investments
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Budget
$ 1,230,000
40,000
1,270,000
26,000
290,000
1,402,389
1,718,389
$ (448,389)
Actual on
Budgetary
Basis
1,385,440
45,363
9,339
1,440,142
15,322
290,000
1,394,418
1,699,740
(259,598)
Variance-
Over
(Under)
155,440
5,363
9,339
170,142
(10,678)
(7,971)
(18,649)
188,791
114
115
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.
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.
116
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.
Civic and
Maintenance Projects
Water, Sewer and
Drainage Projects
Street, Interchange
and Traffic Signal
Projects
117
CITY OF CARLSBAD
Capital Projects Funds
Combining Balance Sheet
June 30, 2000
Bridge and City and Community General
Assessment Thoroughfare County Facilities Federal Capital Park
Districts Districts Agencies District No. 1 Grants Construction Development
$ 1,679,249 5,881,365 897,252 32,508,305 - 8,359,223
36,878
9,246 - - - -
127,434
200,725
2,000,854
$ 1,688,495 5,881,365 897,252 32,545,183 127,434 10,560,802
$ - 209,391 - 539,566 543 105,507
126,891
3,140,854 - -
156,565 - - - 63,250
3,506,810 - 539,566 127,434 168,757
200,725
2,000,854
5,118 627,177 97,778 4,455,678 - 1,033,111
887,919 - 208,988 23,400,247
795,458 1,747,378 590,486 4,149,692 - 5,014,017
2,143,338
1,688,495 2,374,555 897,252 32,005,617 - 10,392,045
5,922,253
5,922,253
320
3,410,000
3,410,320
11,853
2,095,624
404,456
2,511,933
Assets
Cash and investments
Receivables:
Taxes
Accrued interest
Accounts, net
Due from other governments
Prepaid items
Advances to other funds
Total assets
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 items
Advances to other funds
Encumbrances
Unreserved:
Designated for approved
capital projects
Designated for continuing
appropriations
Undesignated
Total liabilities and
fund balances S 1,688,495 5,881,365 897,252 32.545,183 127,434 10,560,802 5,922,253
118
Planned
Local Public
Drainage Facilities
Facilities Construction
6,851,008 31,692,337
463,810
7,314,818 31,692,337
7,397 290,586
268,128
275,525 290,586
114,772 1,152,956
5,163,299 23,361,422
1,761,222 6,887,373
7.039,293 31,401.751
Rancho
Santa Fe
Road Redevelopment Sales Tax/
Project Agency TransNet
17,788,638 1,344,229 10,555,896
14,342
63,760
17,370
17,788,638 1,439,701 10,555,896
920,825 75,021 202,363
213,999
9,323
29,800
920,825 328,143 202,363
17,370
1,090,470 46,249 1,276,232
15,062,260 678,266 1,737,275
715,083 369,673 7,340,026
16,867,813 1,111.558 10,353,533
Traffic
State Impact
Grants Projects
302,289 5,620,694
3,974
306,263 5,620,694
9,423 217,184
3,974
1,000,000
20,400
13,397 1,237,584
60,695 262,920
59,829
172,342 4,120,190
292,866 4,383,110
Totals
129,402,738
36,878
23,588
527,570
131,408
218,095
2,000,854
132,341,131
2,578,126
130,865
7,764,853
9,323
538,143
11,021,310
218,095
2,000,854
10,235,009
72,655,129
34,067,396
2,143,338
121,319,821
7,314,818 31.692,337 17,788,638 1.439,701 10,555,896 306,263 5,620,694 132,341,131
119
CITY OF CARLSBAD
Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2000
Bridge and City and Community General
Revenues:
Taxes
Intergovernmental
Charges for services
Income from property and
investments
Contributions from property
owners
Miscellaneous
Total revenues
Expenditures:
Current:
General government
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
Loan proceeds
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 year
Assessment
Districts
$
236,493
236,493
4,246
5,264,303
5,268,549
(5,032,056)
-
Thoroughfare
Districts
269,977
31,564
301,541
2,927,602
2,927,602
(2,626,061)
2,197,899
(107,779)
2,090,120
County
Agencies
232,699
45,302
278,001
22,641
206,437
229,078
48,923
(200,000)
(200,000)
Facilities
District No. 1
8,242,986
702,100
1,499,016
919,331
120,807
11,484,240
146,569
9,032,274
9,178,843
2,305,397
-
Federal Capital
Grants Construction
235,491
127,434
420,670
30,686
127,434 686,847
125,183
134,272 2,830,139
17,742
5,830
134,272 2,978,894
(6,838) (2,292,047)
8,448,633
233,069
8,681,702
Park
Development
401,390
1,137,599
1,538,989
3,693,592
3,693,592
(2,154,603)
-
(5,032,056) (535,941) (151,077) 2,305,397 (6,838) 6,389,655 (2,154,603)
6,720,551 2,910.496 1.048,329 29,700,220 6,838 4,002,390 4,666,536
S 1,688,495 2.374,555 897,252 32,005,617 - 10,392,045 2,511,933
120
Planned Rancho
Local Public Santa Fe Traffic
Drainage Facilities Road Redevelopment Sales Tax/ State Impact
Facilities Construction Project Agency TransNet Grants Projects
598,600 ....
200,000 1,750,000 2,201,873
196,915
326,822 1,529,195 856,759 84,269 609,354 18,508 241,133
644,549 7,335,364 - ... 1,383,597
69,192 4,678 - - 13,089
971,371 8,864,559 1,524,551 485,862 2,359,354 2,220,381 1,637,819
40,866 - - 555,639 - - 167,134
94,143 6,577,321 1,324,364 3,107,376 3,795,848 142,312 413,091
.
135,009 6,577,321 1,324,364 3,663,015 3,795,848 142,312 580,225
Totals
9,077,077
5,214,106
196,915
6,538,888
11,452,004
238,452
32,717,442
1,062,278
39,543,074
17,742
5,830
40,628,924
836,362 2,287,238 200,187 (3,177,153) (1,436,494) 2,078,069 1,057,594 (7,911,482)
(125,000)
(125,000)
125,000
125,000
1,752,949
1,752,949
200,000
200,000
(2,197,899)
(2,197,899)
12,724,481
(2,630,678)
233,069
10,326,872
836,362 2,162,238 325,187 (1,424,204) (1,236,494) (119,830) 1,057,594 2,415,390
6.202,931 29.239.513 16,542.626 2,535,762 11,590,027 412,696 3,325,516 118,904,431
7,039,293 31.401,751 16,867,813 1,111,558 10,353,533 292,866 4,383,110 121,319,821
121
122
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
123
CITY OF CARLSBAD
Enterprise Funds
Combining Balance Sheet
June 30, 2000
Assets
Current assets:
Cash and investments
Receivables:
Taxes
Accounts, net
Prepaid items
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 governments
Deferred revenue
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 $204,117
Installment purchase agreement, net of
unamortized issuance costs and
deferred charges of $831,261
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
$ 40,840,299
18,774
2,991,920
4,350
269,335
44,124,678
761,609
6,832
768,441
86,826,511
(17,996,644)
68,829,867
$ 113,722,986
$ 3,062,690
933,056
1,147,546
267,963
5,411,255
61,596
1,684,889
3,165,883
10,323,623
66,928,612
740,000
35,730,751
36,470,751
103,399,363
$ 113,722,986
Golf
Course
2,359,379
2,359,379
-
-
7,806,728
7,806,728
10,166,107
11,087
161,614
172,701
13,416
2,737,200
789,430
3,712,747
7,465,190
(1,011,830)
(1,011,830)
6,453,360
10,166,107
Sewer
50,907,428
767,612
8,006
51,683,046
954,221
21,725
975,946
74,754,279
(18,581,155)
56,173,124
108,832,116
1,134,671
356,611
43,999
460,000
1,226,095
3,221,376
204,822
1,490,503
8,518,739
13,435,440
62,956,520
942,026
31,498,130
32,440,156
95,396,676
108,832,116
Solid
Waste
2,861,823
39,637
252,284
3,153,744
-
-
2,451
(1,226)
1,225
3,154,969
211,751
211,751
211,751
3,421
2,939,797
2,939,797
2,943,218
3,154,969
Totals
96,968,929
58,411
4,011,816
4,350
277,341
101,320,847
1,715,830
28,557
1,744,387
169,389,969
(36,579,025)
132,810,944
235,876,178
4,420,199
1,289,667
43,999
1,769,160
1,494,058
9,017,083
279,834
2,737,200
1,490,503
1,684,889
3,165,883
8,518,739
789,430
27,683,561
137,353,743
1,682,026
69,156,848
70,838,874
208,192,617
235,876,178
124
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 2000
Operating revenues:
Water sales
Sewer services charges
Other charges for services
Contributions from other
government agencies
Miscellaneous
Total operating revenues
Operating expenses:
Sewer 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
Amortization of issuance costs
Total nonoperating revenues (expenses)
Net income (loss)
Retained earnings (deficit) at beginning
of year
Retained earnings (deficit) at end of year
Carlsbad
Municipal
Water District
$ 17,214,308
857,208
455,428
482,347
19,009,291
11,035,042
1,441,055
5,757,902
18,233,999
775,292
2,014,278
(359,410)
(2,050)
1,155,311
(13,762)
2,794,367
3,569,659
32,901,092
Golf
Course Sewer
5,333,786
90,992
806,689
6,231,467
2,004,493
1,372,093
199,021 1,212,566
199,021 4,589,152
(199,021) 1,642,315
158,047 2,179,466
2,961 (575,740)
10,705
161,008 1,614,431
(38,013) 3,256,746
(973,817) 29,183,410
Solid Waste
571,734
47,254
581
619,569
490
148,185
148,675
470,894
129,077
129,077
599,971
2,339,826
Totals
17,214,308
5,333,786
1,519,934
502,682
1,289,617
25,860,327
2,004,493
11,035,042
2,813,638
7,317,674
23,170,847
2,689,480
4,480,868
(932,189)
8,655
1,155,311
(13,762)
4,698,883
7,388,363
63,450,511
$ 36,470,751 (1,011,830) 32,440,156 2,939,797 70,838,874
125
CITY OF CARLSBAD
Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 2000
Carlsbad
Municipal
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 prepaid items
(Increase) decrease in due from other governments
(Increase) decrease in inventory
Increase (decrease) hi accrued liabilities
Increase (decrease) hi due to other governments
Increase (decrease) hi deposits payable
Increase (decrease) hi estimated claims payable
Increase (decrease) hi deferred revenue
Increase (decrease) hi 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 increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Water District
$ 775,292
1,441,055
335,823
(4,350)
58,214
(37,518)
169,078
10,903
(99,739)
(32,000)
-
(104,515)
2,512,243
(161,665)
(161,665)
(4,194,780)
(995,000)
(273,185)
1,155,311
3,943,775
(363,879)
2,014,278
4,000,977
36,860,931
$ 40,861,908
Golf Course
(199,021)
_
-
-
-
-
11,033
-
-
-
-
-
(187,988)
600,000
-
600,000
(856,165)
(301,127)
(2,962)
-
-
(1,160,254)
161,008
(587,234)
2,946,613
2,359,379
Sewer Solid Waste
1,642,315 470,894
1,372,093 490
(767,612) (216,297)
-
-
(1,409)
631,832 315,454
-
(262,283)
-
(428,744)
-
2,186,192 570,541
518,276
-
518,276
(1,966,279)
(440,000)
(502,280)
-
3,903,025
994,466
2,186,075
5,885,009 570,541
45,022,934 2,291,282
50,907,943 2,861,823
Totals
2,689,480
2,813,638
(648,086)
(4,350)
58,214
(38,927)
1,127,397
10,903
(362,022)
(32,000)
(428,744)
(104,515)
5,080,988
1,118,276
(161,665)
956,611
(7,017,224)
(1,736,127)
(778,427)
1,155,311
7,846,800
(529,667)
4,361,361
9,869,293
87,121,760
96,991,053
126
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 $ 40,840,299 2,359,379 50,907,428 2,861,823 96,968,929
Restricted assets:
Cash and investments 761,609 - 954,221 - 1,715,830
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 $ 40,861,908 2,359,379 50,907,943 2,861,823 96,991,053
Supplemental schedule of noncash investing,
capital and financing activities:
Capital assets contributed by (to) other funds $ 3,555,921 2,800,025 6,355,946
127
128
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 Technology
To account for charges to other funds for information technology 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.
Information
Technology Workers'
Compensation
129
CITY OF CARLSBAD
Internal Service Funds
Combining Balance Sheet
June 30, 2000
Fleet Health Information Risk Workers'
Management Insurance Technology Management Compensation Totals
Assets
Current assets:
Cash and investments
Receivables:
Accounts, net
Inventory
Prepaid items
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
Capital lease payable
Estimated claims payable
Deferred revenue
Total current liabilities
Fund equity:
Contributed capital
Retained earnings:
Unreserved
Total fund equity
Total liabilities and
fund equity
$ 5,468,637
13,692
97,075
5,579,404
9,057,577
(4,368,960)
4,688,617
$ 10,268,021
$ 264,201
8,787
15,391
10,484
298,863
3,552,623
6,416,535
9,969,158
199,446 1,506,646
11,250 100
25,565 9,715
236,261 1,516,461
3,555,160
(1,723,817)
1,831,343
236,261 3,347,804
39,337 20,345
30,888
46,934
13,072
384,399
14,167
437,903 111,239
2,598,257
(201,642) 638,308
(201,642) 3,236,565
3,542,366
-
3,542,366
2,484
(455)
2,029
3,544,395
I.— —
14,793
6,419
13,310
623,586
175
658,283
1,911,939
974,173
2,886,112
1,943,213 12,660,308
25,042
97,075
35,280
1,943,213 12,817,705
12,615,221
(6,093,232)
6,521,989
1,943,213 19,339,694
1,083 339,759
5,129 51,223
75,635
23,556
834,734 1,842,719
14,342
840,946 2,347,234
752,600 8,815,419
349,667 8,177,041
1,102,267 16,992,460
$10,268,021 236,261 3,347,804 3,544,395 1,943,213 19,339,694
130
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Year Ended June 30, 2000
Fleet Health Information Risk Workers'
Management Insurance Technology 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 disposition of assets
Total nonoperating revenues
(expenses)
Net income (loss)
Retained earnings (deficit) at beginning
of year
Retained earnings (deficit)
at end of year
$2,765,442
8,847
2,774,289
947,004
416,381
1,077,426
2,440,811
333,478
260,714
37,799
298,513
2,214,379
357,696
2,572,075
2,766,934
2,766,934
(194,859)
20,613
20,613
2,402,030
1,710
2,403,740
397,090
15,568
1,841,038
2,253,696
150,044
68,349
(22,878)
45,471
734,389
8,551
742,940
455
942,358
137,382
1,080,195
(337,255)
166,322
166,322
532,110
5,870
537,980
675,727
83,416
759,143
(221,163)
101,486
101,486
8,648,350
382,674
9,031,024
1,344,549
431,949
4,385,019
3,139,262
9,300,779
(269,755)
617,484
14,921
632,405
631,991 (174,246) 195,515 (170,933) (119,677) 362,650
5,784,544 (27,396) 442,793 1,145,106 469,344 7,814,391
$6,416,535 (201,642) 638,308 974,173 349,667 8,177,041
131
CITY OF CARLSBAD
Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30, 2000
Fleet Health Information Risk Workers'
Management Insurance Systems Management Compensation 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 inventory
(Increase) decrease in prepaid items
Increase (decrease) in accrued liabilities
Increase (decrease) in estimated claims
payable
Net cash provided by (used for)
operating activities
Cash flows from capital and related
financing activities:
Purchases of fixed assets
Cash flows from investing activities:
Interest on investments
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning
of year
Cash and cash equivalents at end of year
$ 333,478
947,004
11,238
3,420
(31,156)
.
1,263,984
(1,173,987)
260,714
350,711
(194,859)
(2,157)
(25,565)
39,884
42,043
(140,654)
20,613
(120,041)
150,044
397,090
100
(9,715)
(143,293)
-
394,226
(320,431)
68,349
142,144
(337,255)
455
(31,283)
486,354
118,271
(2,484)
166,322
282,109
(221,163) (269,755)
1,344,549
9,181
3,420
(35,280)
(6,304) (172,152)
989 529,386
(226,478) 1,409,349
(1,496,902)
101,486 617,484
(124,992) 529,931
5,117,926 319,487 1,364,502 3,260,257
$5,468,637 199,446 1,506,646 3,542,366
2,068,205 12,130,377
1,943,213 12,660,308
Supplemental schedule of noncash investing,
capital and financing activities:
Capital assets contributed by (to) other
funds S 218,884 1,018,979 1,237,863
132
133
134
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.
135
CITY OF CARLSBAD
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year Ended June 30, 2000
Balance at
June 30, 1999 Additions Reductions
Balance at
June 30, 2000
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
Accounts receivable
Taxes receivable
Accrued interest
Total assets
Liabilities:
Accrued interest payable
Due to bondholders
Deposits payable
$
$
$
$
$
$
$
$
$
$
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
16,483,555
16,411
16,499,966
380,111
21,883,968
22,264,079
6,367,354
108,530
95,052
6,570,936
5,137,792
22,850,909
16,411
108,530
95,052
23,070,902
380,111
5,137,792
21,883,968
(15,916,834)
(10,817)
(15,927,651)
(158,214)
(21,533,550)
(21,691,764)
(8,426,897)
(13,830)
(44,014)
(8,484,741)
(7,051,597)
(24,343,731)
(10,817)
(13,830)
(44,014)
(24,412,392)
(158,214)
(7,051,597)
(21,533,550)
8,574,896
16,202
8,591,098
1,707,618
6,883,480
8,591,098
7,804,501
102,297
95,052
8,001,850
8,001,850
16,379,397
16,202
102,297
95,052
16,592,948
1,707,618
8,001,850
6,883,480
Total liabilities $ 17,934,438 27,401,871 (28,743,361)16,592,948
136
137
138
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.
Construction m
Progress
Furniture and
Equipment
139
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Function
June 30, 2000
Land
Buildings
Improvements
Furniture and equipment
Construction in progress
Totals
General Culture and Public Public
Government Recreation Safety Works Totals
$ 5,119,386 30,004,289 2,150,407 740,763 38,014,845
9,537,830 24,219,024 13,996,610 - 47,753,464
959,348 8,642,722 519,456 342,009 10,463,535
2,138,112 3,831,677 3,608,091 1,702,481 11,280,361
- 1,128,885 197,021 179,211 1,505,117
6JZJ2jy>2Z 2QJ1L585 2,264,461 109.017.322
140
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function
Year Ended June 30, 2000
General government
Culture and recreation
Public safety
Public works
Totals
General Fixed
Assets at
July 1. 1999
$ 8,424,669
60,503,134
20,060,775
2.656.475
S91.645.Q53
Additions
14,602,326
33,944,728
509,286
444.072
Deductions
General Fixed
Assets at
June 30. 2000
17,754,676
67,826,597
20,471,585
2.964.464
109.017.322
141
CITY OF CARLSBAD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Source
June 30,2000
As of June 30, 1986 $27,136,537
Net additions subsequent to June 30, 1986:
General Fund 21,078,095
Community development block grants 2,912,726
Federal grants 709,124
State grants 855,967
Street lighting 327,151
Park development 20,221,614
Public facilities 26,272,848
Redevelopment 9.503,260
Total investments in general fixed assets $109.017.322
142
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 LoanHosp Grove COPs
Enclna Joint Powers
Authority Purchase
Agreement
Water District
COPs
State Loan for
Reclaimed Water Golf Course Accrued
Assessment
143
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements
$15.495,000 - 1993 CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION TAX ALLOCATION BONDS
Fiscal
Year
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
$ 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
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
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
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
1,042,771
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 S5.56Q.570 5.187.681 10.748.251 14.170.000
144
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$6.595.000 - 1997 HOSP GROVE CERTIFICATES OF PARTICIPATION
(1988 Refunding)
Fiscal
Year
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
Interest Due
August 1
$121,978
111,678
100,608
88,743
76,058
62,418
48,448
33,373
17,273
Interest Due
February 1
111,677
100,607
88,742
76,057
62,417
48,447
33,372
17,272
-
Total
Interest
233,655
212,285
189,350
164,800
138,475
110,865
81,820
50,645
17,273
Principal Due
August 1
515,000
540,000
565,000
590,000
620,000
635,000
670,000
700,000
735.000
Total Annual
Debt Service
748,655
752,285
754,350
754,800
758,475
745,865
751,820
750,645
752,273
Totals S66Q.577 1.199.168 5.570.QOQ 6.769.168
Totals
SI. 199.950 - HUD SECTION 108 LOAN
Fiscal
Year
2000-01
2001-02
2002-03
2003-04
Interest Due
August 1
$25,491
19,787
13,621
7.030
Interest Due
February 1
19,787
13,621
7,030
Total
Interest
45,278
33,408
20,651
7.030
Principal Due
August 1
140,000
150,000
160,000
169.950
Total Annual
Debt Service
185,278
183,408
180,651
176.980
145
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
S7.4QO.OQQ - 1997 CARLSBAD MUNICIPAL WATER DISTRICT
CERTIFICATES OF PARTICIPATION (1988 Refunding Project)
Fiscal
Year
2000-01
2001-02
2002-03
2003-04
Totals
Interest Due
November 1
$ 93,825
72,505
49,930
25.850
S242.110
Interest Due
May 1
93,825
72,505
49,930
25.850
Total
Interest
187,650
145,010
99,860
51.700
Principal Due
May 1
1,040,000
1,075,000
1,120,000
1.175.000
4,410,000
Total Annual
Debt Service
1,227,650
1,220,010
1,219,860
1.226.700
4.894.220
SI 1.080.000 - ENCINA FINANCING JOINT POWERS AUTHORITY
INSTALLMENT PURCHASE AGREEMENT
Fiscal
Year
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
$ 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
S2.229.998
Interest Due
February 1
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
1.984.211
Total
Interest
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
4.214.209
Principal Due
August 1
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
Total Annual
Debt Service
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
9.810.000 14.024.209
146
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements, (Continued)
$2.331.489 - CARLSBAD MUNICIPAL WATER DISTRICT
STATE LOAN FOR RECLAIMED WATER PROJECTS
Fiscal
Year
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
$ 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
Principal Due
November 30
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
1.792.435
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
125,899
$2.618.908 GOLF COURSE ACCRUED ASSESSMENT
Fiscal
Year
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
Totals
Interest
$ 52,485
45,212
37,465
29,103
20,173
10,425
S194.863
Principal
161,614
168,405
177,912
186,060
196,925
206.432
1.097.348
Total Annual
Debt Service
214,099
213,617
215,377
215,163
217,098
216.857
1.292.211
147
148
stI
t
I
1:
149
Fiscal
Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1998-99'2'
1999-00'2'
CITY OF CARLSBAD
General Expenditures by Function
Last Ten Fiscal Years
Total"1
$72,999,324
53.985.119
55.104,390
62,668,276
60,280,103
59.802,924
65,943,032
80,045.280
General
Govt.
Public
Safety
$5.371.331 $15.242.493
5,884,582 15,989,114
6,080,919 15,734,643
5.513.101 16.351.652
5,871.248 15,915.678
5,850,829 16,850.087
6,961.469 17,410,033
6,909,151 18,631,042
112,156,205 6,784,525 21,927,751
105,655,384 7,382,909 21.799,386
Comm.
Devel.
$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
11,538,444
"Includes General, Special Revenue, Debt Service and Capital Projects Funds.
Comm.
Services
$7,921,668
7,473.689
7,176,621
7,548.100
7,4S9,685
7.590,363
8.390,009
6,672.810
7.541,378
9,088,264
Public
Works
$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
13.822,429
Capital
Projects
$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
39.543,074
Debt
Service
$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
2,480,878
"'Beginning in fiscal year 1997-98, Park Maintenance expenditures are included in Public Works instead of
Community Services.
GENERAL EXPENDITURES BY FUNCTION
1999-00
Capital Projects
37%
Public Works
13%
Debt Service Genera|
Government
7%
Public Safety
21%
Community
Services
9%
Community
Development
11%
Source: City of Carlsbad Comprehensive Annual Financial Reports
150
TOTAL EXPENDITURES
LAST TEN YEARS
$120 -I
$100 -
$80 -
$60
$40
$20
$0
I
\ I
IT I
I I I
I I I
I
I
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
SPENDING ON CAPITAL PROJECTS
LAST TEN YEARS
$60 -f
$50 -
$40 -
$30 -
$20 -
$10
$0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
151
CITY OF CARLSBAD
General Revenues by Source
Last Ten Fiscal Years
Transient
Fiscal Property
Year Total01 Taxes
1990-91 $77,371,107 $14,007,364
1991-92 58,440,436 15,132,124
1992-93 58,115,465 15,332,036
1993-94 62,239,740 13,920,220
1994-95 69,768,517 13,537,893
1995-96 74,611,395 13,576,407
1996-97 98,645,130 14,516,474
1997-98 122,653,159 15,226,827
1998-99 145,393,991 17,121,586
1999-00 115,252,270 19,916,613
(l) Includes General, Special
Funds.
Sales Occupancy Other Business
Taxes Taxes Taxes Licenses
$9,426,111 $3,310,043 $3,691,387 $ 832,432
8,723,382 3,077.595 5,153,213 910,532
9,167,849 3,098,793 3,408,805 1,071,342
10.840,115 3,153,084 4,124,250 1,093,827
11,399,568 3,252,270 8,434,825 1,245,830
11,542,970 3,406,917 8,621,717 1,491,159
12,495,143 3,675,472 10,824,890 1,510,462
14,817,057 6,046,092 15,290,601 1,603,744
17,129,474 7,010,249 14,508,643 1,737,850
19,493,247 8,333,196 12,661,882 1,863,514
Revenue, Debt Service and Capital Projects
<2) Includes interdepartmental services category added
miscellaneous revenues.
GENERAL REVENUE
LAST TEN YEARS
160 -f
S 140 '
= -ion •• JB* 1?? • tmIpipllHHHl^HF 1 1 1 II
bStlr H^^PVTn j >\
= !n " WIHIPE'PPEEIg 40 |
- 2n 1 LU "T^^^T^^^^^^r"™'~T"""^r^^^^^^^^^^^^^^*ri^^wr'•• — CX "O -53- ^f~! LO r-~~. CO CTi O2
»30 -i-tf)
J6
1 10 -I!ol
in 199 1-92 and
PROPERTY TAX
AND SALES TAX REVENUE
LAST TEN YEARS
Property Tax
*"""'"! """""71 '
Fiscal Year Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
152
Other
Licenses
$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
3,320,851
Intergovern-
mental
$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
14,094,118
Charges for
Services
$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
5,749,416
Fines and
Forfeits
$515,746
312,984
231,877
231,454
263,411
335,395
317,892
331,318
935,955
839,831
Investment
Income
$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
10,495,817
Contributions
From Property
Owners
$16,515,962
446,813
380,389
344,851
2,148,548
9,359,802
15,450,861
25,861,948
45,763,304
14,733,063
Other'2'
$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
3,750,722
9
876543
TRANSIENT OCCUPANCY TAX
LAST TEN YEARS
"i I ;
t r i I i i i i Ii i i i i i i ii
Fiscal Year
c
12
10
2 8
O
10c0
6
4
2
0
CHARGES FOR SERVICES
LAST TEN YEARS
11 n 11111 M11111111111
CDcn en CD en en en CD en CDen en CD en en en en en CD
Fiscal Year
153
CITY OF CARLSBAD
Ratio of General Bonded Debt to Assessed Valuation
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Fiscal
Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
Net Assessed
Valuation'1'
$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
8,890,683,170
Outstanding
Principal'2'
$150,000
-
-
-
-
-
-
-
-
-
Percent of
Total Per Capita
Valuation Debt
$2
(2)
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'3'
64,120
65,331
66,481
66,652
66,479
68,010
70,532
73,688
77,550
82,030
<3) Population as of January 1 of each year per the State Department of Finance.
GENERAL BONDED DEBT PER
CAPITA
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
154
CITY OF CARLSBAD
Computation of Legal Debt Margin
June 30, 2000
Net assessed valuation $ 8.890.683.170
Debt limit ( 1 5% of 25% of net assessed valuation as adjusted) 333,400,619
Amount of debt applicable to debt limit:
Bonded debt 14,170,000
Certificates of participation 5,570,000
Obligations under capital leases 904, 1 83
Total amount of debt applicable to debt limit 20,644,183
Legal debt margin $
Source: County of San Diego Office of the Auditor and Controller
Percent of debt limit 6%
155
1999-00 Assessed Valuation:
CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
June 30, 2000
$9,009,709,770 (after deducting $159,009,329 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
Oceanside Unified School District
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 DEBT(1)
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 ($5,570,000)
Gross Combined Total Debt
%
Applicable
5.710 %
0.988
97.616
97.616
100.000
0.004
26.607
26.607
28.580
100.000
26.256
35.439
22.467
100.000
5.502 %
5.502
5.502
26.273
97.616
25.006
26.607
Various
100.000
Debt
June 30, 2000
$ 352,022
5,430,196
25,866,967
1,654,591
11,695,000
380
7,772,921
1,166,717
6,065,539
12,950,000
11,725,930
46,071
4,918,026
43,635,000
$ 133,279,360
$ 31,329,248
19,108,721
122,282
1,844,365
12,978,047
442,606
1,478,019
187,018
5,570,000
$ 73,060,306
$ 206,339,666
1.45%
0.06%
2.29%
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.
$99,273
$200,000
156
CITY OF CARLSBAD
Ratio of Annual Debt Service for
General Bonded Debt to Total Governmental Expenditures
Last Ten Fiscal Years
Fiscal
Year Principal
1990-91 $135,000
1991-92 150,000
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
(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
$8,652
3,908
-
-
-
-
-
-
-
-
Total Total
Debt Governmental
Service"' Expenditures'21
$143,652 $72,999,324
153,908 53,985,119
55,104,390
62,668,276
60,280,103
59,802,924
65,943,032
80,045,280
112,156,205
105,655,384
Ratio of Debt
Service to
Governmental
Expenditures
0.2
0.3
-
-
-
-
-
-
-
-
RATIO OF DEBT SERVICE TO GENERAL EXPENDITURES
LAST TEN YEARS
0.0%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
157
CITY OF CARLSBAD
Water Enterprise
Revenue Bond Coverage
Last Ten Fiscal Years
Fiscal
Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
Gross
Revenue0 '
$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
22,178,880
Direct
Operating
Expenses0'
$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
18,609,221
Net Revenue
Available
For Debt
Service
$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
3,569,659
Debt Service Requirements
Principal
$775,000
685,000
730,000
775,000
825,000
880,000
1,040,000
955,000
995,000
1,040,000
Interest
$1,088,386
842,538
798,696
751,248
700,098
644,822
494,954
264,695
227,450
187,650
Total Coverage
$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
1,227,650
1.19
1.29
0.55
1.90
2.11
2.07
2.75
3.09
2.63
2.91
(1) Includes operating and non-operating revenues.
(2) Total operating expenses including depreciation and amortization.
Source: City of Carlsbad Comprehensive Annual Financial Reports
158
WATER ENTERPRISE GROSS REVENUE
VS.
DIRECT OPERATING EXPENSES
LAST TEN YEARS
$20 -,
$15-
$10 -
$5-
$0
Dollars in Millions
mniTI i ii i ini i i i i i i i i
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
DGROSS REVENUE
• OPERATING EXPENSES
WATER ENTERPRISE
REVENUE AVAILABLE FOR DEBT SERVICE
LAST TEN YEARS
Dollars in millions
$4.5.
$4.0 -
$3.5 -
$3.0
$2.5 -
$2.0
$1.5
$1.0
$0.5
$0.0 4i i MIPi-,-:;--; . ." ..- :;..,;' -: • .-"
-i f'i*$,- - . . \ -. .••
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
159
CITY OF CARLSBAD
Schedule of Assessed Valuation
Last Ten Fiscal Years
Fiscal Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
Secured Property
$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
8,675,347,964
Unsecured Property
$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
419,824,253
Less Property
Exemptions
$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
85,462,447
(1) Does not include redevelopment incremental valuation or state-assessed
unitary values.
Source: County of San Diego Office of the Auditor and Controller
160
Total
Assessed Valuation0'
$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
9,009,709,770
Homeowner's
Exemptions
$ 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
119,026,600
Net Assessed
Valuation
$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
8,890,683,170
NET TAXABLE VALUE
LAST TEN YEARS
Percentage
Change
12.9
8.0
2.7
(1.1)
(2.9)
0.3
2.8
7.0
15.1
20.3
Dollars in billions
$9
$8
$7
$6
$5
$4
$3
$2
$1
$0
f F r r iI I II I IiiiI I II I
I
I
I
I
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
161
CITY OF CARLSBAD
Construction and Business Activity
Last Ten Fiscal Years
Fiscal
Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
Building
Permit
Revenue
$ 857,717
219,445
234,063
365,571
644,131
917,788
1,262,177
2,094,523
2,524,063
2,156,584
Percent
Change
(16.7)
(74.4)
6.7
56.1
76.2
42.4
37.6
65.9
20.5
(14.6)
Estimated
Valuation
$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
468,596,775
Business
License
Revenue
$ 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
1,863,514
Percent
Change
5.1
9.4
17.7
2.1
13.9
19.7
1.3
6.2
8.4
7.2
Construction
Deposits
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
6,132,355
ESTIMATED BUILDING VALUATION
LAST TEN YEARS
Dollars in millions
$600 -|
$500-
$400 -
$300 •
$200
$100
$0
I
ill
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Reports
162
•
CITY OF CARLSBAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
Total
Current Levy
$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
17,923,250
Total Current
Collections
$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
17,110,252
% of Levy
Collected
93.2
92.4
91.3
91.5
90.5
93.9
94.5
95.5
95.4
95.5
$18 i
$16-
$14-
$12
$10
$8
$6
$4
$2
$0
PROPERTY TAX LEVIES & COLLECTIONS
LAST TEN FISCAL YEARS
IT
I II
I I I
I I I
I I I
I II
: j
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
BLEVIES BCOLLECTIONS
Source: County of San Diego Office of the Auditor and Controller
163
CITY OF CARLSBAD
Demographic Statistics
Last Ten Fiscal Years
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
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
42.2
42.2
Population"'
64,120
65,331
66,481
66,652
66,479
68,010
70,532
73,688
77,550
82,030
93,878(3>
112,038(3)
Population
Percent
Change
1.6
1.9
1.8
0.9
(0.2)
2.3
3.7
4.5
5.2
5.8
14.4
19.3
County
Population(2)
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
2,911,468
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
2.6
2.6
2.7
2.0
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 2000-01 Capital Improvement Program.
(4) Source - San Diego Association of Governments Series VIII growth forecast.
POPULATION
LAST TEN YEARS
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Fiscal Year
164
CITY OF CARLSBAD
Principal Employers
1999-2000
EIRM PRODUCT/SERVICE EMPLOYEES
MANUFACTURING
Callaway Golf
Mallinckrodt
Taylor Made Golf-Adidas Golf Company
Acushnet Golf
Ashworth, Inc.
ViaSat
Asymtek
Republic Tool & Manufacturing Company
Syntron Bioresearch, Inc.
Invitrogen
Beckman Coulter
The Upper Deck
Schumacher
Dothill Systems Corporation
Melles Griot Laser Products
Golf Equipment
Respiratory Products
Golf Equipment
Golf Equipment
Golf Apparel
Data Communications
Fluid Dispensing Systems
Tools
Test Kits & Diagnostics
Research Supplies
Medical Diagnostic Reagent
Sports Trading Cards
Chemical Purification Systems
Computer Technology
Lasers
2000
800
727
675
394
350
320
300
300
296
260
250
248
200
200
NON-MANUFACTURING
Westfield Shoppingtown/Plaza Camino Real
Four Seasons Resort-Aviara
LEGOLAND California
City of Carlsbad
La Costa Resort & Spa
Carlsbad Company Stores
Carlsbad Unified School District
Grand Pacific Resorts
Gemological Institute of America
SOMC Group, Inc.
Farmers Insurance
PinnFund USA
San Diego Gas & Electric Company
COSTCO Wholesale
ISIS Pharmaceuticals
Toyota Carlsbad/Lexus
Shopping Mall
Resort
Family Theme Park
Municipal Government
Hotel/Health Spa
Outlet Shopping Center
Education
Hotel Management/Timeshare Development
Gem School
Software Distributor
Insurance Services
Mortgage Banking
Power Generation
Grocer/Wholesale/Retail
Research and Development
Car Dealership
3000
1100
1100
1030
950
850
800
700
500
380
350
325
325
285
250
250
Source: City of Carlsbad Chamber of Commerce
165
CITY OF CARLSBAD
Principal Taxpayers
1999-00
$1,219,925,597
Percentage of Net
Assessed
Taxpayer
Cabrillo Power, LLC
Callaway Golf Company
Legoland California, Inc.
La Costa Hotel & Spa Corporation
Aviara Resort Associates
Real Estate Collateral Mgmt. Co.
Prentiss Properties
Standard Pacific Corporation
Air Products & Chemicals
Gemological Institute
H. G. Fenton Company
Type of Business
Power Generation
Manufacturer
Family Theme Park
Hotel & Health Spa
Resort & Golf Course
Real Estate
Real Estate
General Contractor
Manufacturer
Gemological School
Distribution Warehouse
Valuation
$278,987,131
208,625,717
137,959,014
132,247,593
126,484,454
75,000,004
62,205,983
55,798,698
53,711,540
46,467,985
42,437,478
Valuation1"
3.1
2.3
1.5
1.5
1.4
0.8
0.7
0.6
0.6
0.5
0.5
13.5%
0)Net assessed valuation for 1999-00:$8,890,683,170
Source: County of San Diego Office of the Auditor and Controller
166
CITY OF CARLSBAD
Top 30 Sales Tax Generators
1999-2000
Firm
Aviara Resort Associates
Bob Baker Cadillac
Bob Baker Jeep/Eagle/Hyundai
Bob Baker Volkswagen
Body Wise International
Callaway Golf Company
Carlsbad Mitsubishi
Carlsbad Volvo
Discover Infiniti Carlsbad
Dixon Ford
Hoehn Honda
Hoehn Oldsmobile
J C Penney Company
Jim Finney Pontiac
K & P Fuel Service Station
La Costa Hotel & Spa
Legoland
Lexus Carlsbad
Macy's Department Store
Price Club
Reliable Wholesale Lumber
Robinsons-May Department Store
Rorick Buick
Sears Roebuck & Company
Townsend Lincoln/Mercury
Toyota Carlsbad
Turpanjian Sales Corporation
Vons Grocery Company
Weseloh Chevrolet
Worthington Dodge
Product/Service
Hotel/Food Sales
Car Dealership
Car Dealership
Car Dealership
Distributor/Health Products
Golf Manufacturer
Car Dealership
Car Dealership
Car Dealership
Car Dealership
Car Dealership
Car Dealership
Department Store
Car Dealership
Automated Fuel Management
Hotel & Health Spa
Family Theme Park
Car Dealership
Department Store
General Stores
Building Materials
Department Store
Car Dealership
Department Store
Car Dealership
Car Dealership
Major Appliance/Plumbing Fixtures
Supermarket
Car Dealership
Car Dealership
Source: Municipal Resource Consultants (MRC)
167
CITY OF CARLSBAD
Miscellaneous Statistical Information
1999-00
Date of Incorporation
Type of City
Form of Government
Area
Population (CA Dept of Finance Report 1/1/00)
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
Acres of Parks (Improved Community & Special Use Areas)
Acres of Open Space (Special Resource Areas & General
City-Owned Open Space)
Number of Pools
Number of Libraries
Number of Volumes
Total Number of Authorized Full Time City Employees
July 16, 1952
General Law
Council/Manager
42.19sq. miles
82,030
$8,890,683,170
5,985
279
6
72
93
69,700
21,840
18.3 million gallons
350
145
34
205
1,634
1
2
245,798
586
Source: City of Carlsbad Finance Department
168
169
170