HomeMy WebLinkAbout; ; 2006-2007 CAFR; 2007-06-30City of
California
5610
I
r e a t L n a a S n ,* t a L n a v a in m u n L
Comprehensive Annual Financial Report
For Fiscal Year Ended June 30, 2007
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30, 2007
1635 Faraday Avenue, Carlsbad, CA 92008
Website: www. carlsbadca.gov
Prepared by the Finance Department
Introductory Section
Financial Section
Statistical Section
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 2007
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:
Table of Contents i
City Council's Five-Year Vision Statements 1
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting, Government Finance Officers
Association 12
Location Map 13
List of City Officials 14
Organization Chart 15
FINANCIAL SECTION:
Independent Auditor's Report 17
Management's Discussion and Analysis 19
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Assets 34
Statement of Activities 36
Fund Financial Statements:
Balance Sheet - Governmental Funds 38
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Assets 40
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 42
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 44
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund 46
Statement of Net Assets - Proprietary Funds 48
Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds 52
Statement of Cash Flows - Proprietary Funds 54
Statement of Fiduciary Assets and Liabilities - Agency Funds 58
Notes to the Financial Statements 59
Supplementary Information
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds 90
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances - Nonmajor Governmental Funds 94
Combining Schedule of Revenues and Expenditures - Budget and Actual
(Budgetary Basis) - Special Revenue Funds 98
Combining Schedule of Revenue and Expenditures - Budget and Actual
(Budgetary Basis) - Debt Service Funds 100
Combining Schedule of Revenue and Expenditures - Budget and Actual
(Budgetary Basis) Capital Project Funds 100
Combining Statement of Net Assets - Internal Service Funds 102
Combining Statement of Revenues, Expenses and Changes in Net Assets -
Internal Service Funds 104
Combining Statement of Cash Flows - Internal Service Funds 106
Combining Statement of Changes in Assets and Liabilities - Agency Funds 110
Schedule of Annual Debt Service Requirements 112
CITY OF CARLSBAD
Comprehensive Annual Financial Report
Year Ended June 30, 2007
TABLE OF CONTENTS (CONTINUED) v
Page
STATISTICAL SECTION:
Financial Trends:
Net Assets by Component - Last Six Fiscal Years 118
Changes in Net Assets - Last Six Fiscal Years 120
Fund Balances of Governmental Funds - Last Ten Fiscal Years 122
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 124
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 126
Revenue Capacity:
Water and Sewer Rates - Last Ten Fiscal Years 127
Assessed Value of Taxable Property - Last Ten Fiscal Years 128
Principal Property Taxpayers - Current Year and Nine Years Ago 129
Property Tax Levies and Collections - Last Ten Fiscal Years 130
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 132
Schedule of Direct and Overlapping Bonded Debt - Current Fiscal Year 135
Direct and Overlapping Debt - Last Ten Fiscal Years 136
Legal Debt Margin Information - Last Ten Fiscal Years 138
Pledged-Revenue Coverage - Last Ten Fiscal Years J40
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Fiscal Years 142
Principal Employers - Current Year and Nine Years Ago 144
Operating Information:
Authorized Full and 3/4 Time City Government Employees by Major Service Area -
Last Ten Fiscal Years 146
Operating Indicators by Function/Program - Last Three Fiscal Years 148
Capital Asset Statistics - Last Three Fiscal Years 149
COUNCIL VISION STATEMENTS
Carlsbad City Council
2007
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...
* Provides a 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.
4 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.
* Occupies a leadership role in local and regional planning, (e.g., water, beach,
circulation, and environmental issues) important to local governments actively
involved in addressing governmental issues at the local, state and national
levels.
* Provides an open government for the betterment of the community and
encourages, in a non-partisan manner, active citizen participation and
involvement with the City Council and the City's Boards and Commissions.
And Carlsbad Efficiently and Effectively...
* Delivers top-quality public services.
* Manages its environment proactively, including:
• Open space
. Wildlife habitats
. Water quality/conservation
• Beach erosion
• Air quality
. Resource conservation and waste reduction
* Promotes a safe and efficient integrated transportation system.
* Maintains citywide "small town" community spirit.
* Provides a community where continuous and life-long learning is supported and
encouraged for people of all ages.
* Looks ahead and works to anticipate changes that are required now in order to
make a better future for its citizens.
City of Carlsbad
Finance Department
November 29, 2007
Honorable Mayor, City Council.
and Citizens of the City of Carlsbad
CITY OF CARLSBAD
Carlsbad, CA 92008
LETTER OF TRANSMITTAL
2006-07 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Honorable Mayor. City Council, and Citizens:
I am pleased to present the 2006-07 Comprehensive Annual Financial Report 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. 2007.
Management assumes full responsibility for the completeness and reliability of the information contained in
this report, based upon a comprehensive framework of internal controls that it has established for this
purpose. Because the cost of internal controls should not outweigh its benefits, the City's comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance that
the financial statements will be free from material misstatement.
State law and the City's Municipal Code require that an annual financial report is prepared. This report
fulfills that obligation. It has been prepared in conformity with generally accepted accounting principles
(GAAP) and with the financial reporting requirements prescribed by the Governmental Accounting
Standards Board (GASB). The independent auditing firm of Mayer Hoffman McCann has issued an
unqualified ("clean") opinion on the City of Carlsbad's financial statements for the year ended June 30.
2007. The independent auditor's report is located at the front of the financial section of this report.
Management's Discussion & .Analysis (MD&A) immediately follows the independent auditor's report and
provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A
complements this letter of transmittal and should be read in conjunction with it.
Also, as a recipient of federal and state financial assistance, the City is required to have a "Single Audit'"
performed by our independent audit firm. The Single Audit was designed to meet the special needs of
federal grantor agencies. The standards governing Single Audit engagements require that the independent
auditor report not only on the fair presentation of the financial statements, but also on the audited
government's internal controls and compliance with legal requirements, with special emphasis on internal
controls and legal requirements involving the administration of federal awards. These reports are available
in the City's separately issued Compliance Reports and Other Financial Information. The results of the
City's Single Audit for the fiscal year ended June 30, 2007 noted no material weaknesses in the framework
of internal controls, or significant violations of applicable laws and regulations.
PROFILE OF THE CITY OF CARLSBAD
Carlsbad incorporated in 1952 as a General Law city, although its "village" area dates back more than 100
years. 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 City
3
1635 Faraday Avenue - Carlsbad, CA 92008-7314 • (76O) 6O2-2430 • FAX (760) 602-8553
www.ci.carlsbad.ca.us • Business License (760) 602-2495 • Utility Billing (76O) 602-2420 •
Purchasing (76O) 602-2460 - FAX (760) 6O2-8556 - Bid Line (76O) 602-2464
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 approximately 42 square miles and has a population of
101,337, with an expected build-out population of 110,000 residents.
Industries in the City include three shopping centers; a regional mall, a
specialty outlet center and a community center; a major family theme park;
an auto mall; over 3,700 hotel 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.
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, the Carlsbad Public Financing Authority,
and the Carlsbad Municipal Water District. Through these entities, Carlsbad provides a full range of
services to its citizens and customers including:
Carlsbad
Police protection services
Development services
Fire and paramedic services
Street construction and maintenance
Water delivery system
Library and arts programs
Wastewater 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, in
part, within the City
boundaries. Although the City
Council has no direct control
over these school districts, the
City Council recognizes the
importance of quality school
facilities and programs to
Carlsbad's residents. The City
Council has worked closely
with the schools in the past to
provide assistance.
Budget Process
The Carlsbad Municipal Code
requires that the City Manager
annually prepare a budget for
the City Council with a
message describing important
features, and assume
responsibility for the budget's
administration after adoption.
The budget process begins in
January each year with a
review and update of the City
Council's five-year vision
statements and strategic goals
City of Carlsbad Strategic Goals
Balanced Community Development - A city that connects community, place,
and spirit through balanced and economically sustainable land uses.
Citizen Connection & Partnership — A city that embraces Community
connectivity through the effective use of technological and interpersonal mediums.
Communication — Ensure that community members, Council and staff are well
informed, continuing to be a more responsive government while providing a high
level of citizen confidence in its government.
Environmental Management — An environmentally sensitive community by
focusing on: conservation, storm water, wastewater collection and treatment, solid
waste, and cost-effective and efficient use of energy including alternative energy
sources.
Financial Health — Pursue and implement proactive strategies that support
sustainable economic health and manage fiscal resources effectively.
Learning, Culture & Arts — Promote and support continuous learning, cultural
opportunities and the arts within the community and the City organization.
Parks/Open Space/Trails - Acquire, develop, and maintain a broad range of
open space and recreational facilities that actively address citizen needs, which are
fiscally responsible, and are consistent with the General Plan and Growth
Management Standards.
Top-Quality Services - A city that provides exceptional services on a daily
basis.
Transportation/Circulation - Provide and support a safe and efficient
transportation system that moves goods, services, and people through Carlsbad.
Water — Ensure, in the most cost-effective manner, water quality and reliability to
the maximum extent practical, to deliver high-quality potable and reclaimed water
incorporating drought-resistant community principles.
p
m
1tt
for the City. The City Council also provides the City with its top priority projects, which further defines the
Council's vision. The goals and priority projects outline the methods used to achieve the vision and call out
areas upon which the City Council would like to place special emphasis during the year. Once these are
developed, staff develops operational goals based on the City Council's direction. These operational goals
are the basis for the development of the annual budget.
Budgetary control for the City is maintained through its accounting systems. The City Council adopts the
formal budget at the beginning of each fiscal year and may amend it throughout the year as necessary.
Expenditures may not exceed budgeted figures at the fund level. Monthly reports summarizing the results
of operations for the City's more significant funds are provided to the City Council.
FACTORS AFFECTING FINANCIAL CONDITION
tit
3
iH
p»
iii
I
3
3
3
Economic Profile
The University of San Diego (USD)
tracks the San Diego economy
through its Index of Leading
Economic Indicators. The USD index
tracks six items to evaluate growth
trends in the San Diego economy:
unemployment filings, want ads, local
stock prices, consumer confidence,
building permits and the strength of
the national economy. The index
declined in August 2007 by 1.4%,
which makes the 16th consecutive
monthly decline in the index in the
last 17 months. The decline was
primarily led by a weak housing
market. The index reflects that local
consumer confidence has fallen to its
lowest level since October 2003.
Index of Leading Economic Indicators
Carlsbad's economy is tied closely to that of the San Diego region, although development patterns may
differ. Carlsbad has experienced strong growth in Fiscal Year 2006-07 in property and Transient
Occupancy Taxes (TOT). For Fiscal Year 2006-07, property taxes grew by 15%, reflecting the continued
escalation in housing prices during Fiscal Year 2006-07, new development, as well as the return of $1.8
million in property taxes that the State of California took from the City of Carlsbad during Fiscal Years
2004-05 and 2005-06. TOT, the City's gauge of the tourism industry, ended Fiscal Year 2006-07 showing
a 12% gain, with a large part of that coming from the reopening of a major portion of one of Carlsbad's
premiere resorts, as well as reflecting a full year of the West Inn and Suites, which opened in May 2006.
Sales taxes slowed during Fiscal Year 2006-07 due to the slower economy as well as a decline in auto sales,
however, even with the slow down, an additional $600,000 came in over Fiscal Year 2005-06.
Carlsbad's residential real estate market has slowed significantly throughout Fiscal Year 2006-07. The City
issued 472 residential permits this year, a decrease from the 943 in the previous year. The number of
permits declined due to a lack of supply and a slowing economy. There are a number of new residential
communities under construction or in the final phases of development that will add to the residential
housing stock in Carlsbad. The Villages of La Costa projects known as the Oaks North, the Greens and the
Ridge are under construction, and will add approximately 970 single-family and 450 multi-family units.
The Bressi Ranch area is almost complete with 523 single-family and 100 multi-family units developed. In
addition, the Robertson Ranch area, which is expected to contain over 1,000 residential units, is finishing up
tm
ORIGINAL
its master plan. The completion of these master planned communities will signal an end to the large-scale
residential developments in Carlsbad.
Median SFD Home Prices
V)-ac.ro(/)3o.c
2004 2005 2006
As the housing market has cooled,
the housing prices have slowed as
well. The median price for single-
family homes in Carlsbad was
$777,000 for April 2006 compared to
$750,000 for April 2007, a decrease
of 3.5%. The total assessed values in
the City stand at over $22 billion; an
increase of nearly 58% over what
they were just five years ago. With
the new developments mentioned
earlier starting to sell this year, the
City has projected it will add about
2,117 more residential units and an
additional 3.7 million square feet of
commercial/industrial development over the next five years. The City's residential housing stock is about
90% built out, with approximately 4,658 housing units remaining to develop.
Commercial and industrial development has been averaging 800,000 square feet per year. This is expected
to remain about the same over the next five years to average 820,000 square feet per year with the large
industrial developments including Carlsbad Raceway, Oaks North Industrial Park and the La Costa Town
Center. Some of the major companies in town include the Gemological Institute of America, ViaSat,
Invitrogen, Callaway, Taylor Made, Upper Deck, and many others.
Commercial development has brought much needed entertainment and shopping venues to citizens and
visitors alike, as well as generating additional sales taxes to help pay for City services. Carlsbad is home to
Car Country Carlsbad - an auto mall; the Carlsbad Premium Outlets - a specialty outlet center; Plaza
Camino Real - a regional shopping mall; a Costco center; and the Forum at Carlsbad - a commercial center
with upscale retail shops, restaurants and other commercial uses.
Development has also enhanced Carlsbad's reputation as a destination resort for tourism. The City is host
to a major family theme park: Legoland, and has two luxury resorts available for its visitors: the Four
Seasons Resort at Aviara and the La Costa Resort & Spa. There are also a number of other quality hotels
and motels in the City, with the most recent addition being the West Inn and Suites, which opened in May
2006.
The City of Carlsbad opened a municipal golf course in August 2007, which is expected to further enhance
the tourism attractions the City offers. The municipal golf course, The Crossings at Carlsbad, is an 18 hole,
destination golf course set in the rolling hills and canyons of Carlsbad. With ocean views, high quality golf
experience, a first class restaurant and clubhouse, and linkages to hiking trails, The Crossings at Carlsbad
will be a destination spot for golfers and non-golfers alike.
For the future, there are several new tourist-serving projects in development. The La Costa Resort has been
developing up to 197 commercial resort villas on their site, and part of the increases in TOT to date can be
attributed to several of these villas coming on-line. As they are phased in over the next several years, it is
expected to add over $1.4 million in TOT when completed. Two hotels near the airport are expected to
open during Fiscal Year 2007-08. The two hotels are the Hampton Inn and Homewood Suites, located near
the McClellan/Palomar Airport. They are expected to add 249 hotel rooms, bringing the total available
hotel rooms in the City to over 3,700. These two new hotels are estimated to generate $500,000 per year in
TOT. In addition, a new project next to Legoland is currently under construction and is expected to bring
on 350 hotel rooms and 350 timeshare units. This project is expected to be phased in over time, and is
expected to generate an additional $1.4 to $1.7 million per year in TOT.
The City's base sales taxes are projected to grow by 1.8% for Fiscal Year 2007-08 due to the slowdown in
the economy. While the growth in housing prices is expected to moderate due to the cooling of the real
estate market, there is a lag with the property tax revenue and therefore, according to the County Assessor,
the City should expect property tax revenues to increase by over 11% for Fiscal Year 2007-08. New
building permits are expected to continue to slow and the development related revenue items have been
reduced accordingly for Fiscal Year 2007-08. And finally, tourism is expected to continue to be strong,
with TOT receipts projected to grow by over 6% in the future, with the addition of more available rooms.
For Fiscal Year 2007-08, the City's revenue projections reflect a slowing of the economy due to a weak
housing market, as well as higher oil and gas prices. Conservative increases are expected in most of the tax
revenues with overall General Fund revenues increasing by 5.7%. One of the primary areas of risk in the
forecast for Carlsbad is in the impact of the State of California's budget deficit discussed below.
State of California
In addition to the soft housing market and a slow economy, the State of California's fiscal
problems also cast a shadow on the City's economic future: The State of California has been
in a severe fiscal crisis for a number of years. Through a variety of loans, one-time revenues,
interfund borrowings and raids on city, county and special district funds, the State has been
**-—*' able to manage its cash flows and stay solvent. However, more drastic measures will be
needed for the State to finally get its budget in balance.
According to the Legislative Analyst's Office (LAO), the State is facing significant deficits in future years
despite the stronger revenues seen in the past few years. The LAO's analysis of the Governor's budget
proposal for 2007-08 reflects that the State is proposing to use a significant portion of their fund balance to
cover their operating shortfall, and $3 to $5 billion shortfalls are expected to exist in each of the next
several years. According to the LAO, the ongoing budget shortfalls result from the high reliance in the near
term on one-time savings. The State has balanced its budget by taking City money in the past, and the risk
is that they may find a way to make it happen again.
As a result of the continued attacks on cities' revenues, a coalition of cities, counties and special districts
supported Proposition 1A which was approved by the voters in November 2004. The measure included a
provision to help prevent the Legislature from reducing the combined property tax shares of cities, special
districts, and the county, except to borrow the funds on a temporary basis to address a "severe state fiscal
hardship."
Long-Term Financial Planning
It is the City Council's goal to ensure that the City remains in good financial health, and the City has taken a
number of steps to attain that goal. One of these is the Growth Management Plan. This plan was adopted
by the citizens to ensure that all necessary public facilities are either constructed along with development or
that a financing plan is in place to pay for the facilities prior to the development of the property. Thus, the
initial capital facilities needed to support the growing population are provided without financially impacting
the City or its current residents. The City also prepares a 15+ year Capital Improvement Program. As part
of the Capital Improvement Program, the amounts needed to pay for the various projects as well as the
operating budget impacts are calculated. In this way, we can anticipate the effects of development from
both a capital and an operating perspective.
In order to assure that the City has the funds to replace these facilities as they age, an Infrastructure
Replacement Fund was created. With this fund, the City is setting aside money on an annual basis for major
maintenance and replacement of its infrastructure. Much of the City's infrastructure is relatively new;
therefore, the City has not felt the full impact of maintenance. By setting aside funds now, the citizens of
Carlsbad can be assured that the proper maintenance and replacement, when needed, will be performed on
streets, parks, and the many facilities for which the City is responsible. During Fiscal Year 2008, the City
Council approved allocating $7.9 million or 6.5% of the General Fund revenues to the Infrastructure
Replacement Fund. During Fiscal Year 2007, the City increased the allocation to the Infrastructure
Improvement Fund from 4.0% of General Fund revenues to 6.5% of General Fund revenues due to the
City's current financial strength, as well as the desire to plan for the future to create and maintain a
sustainable community.
In addition to these steps, the City prepares a ten-year financial forecast for the General Fund each year, in
order to understand the effects of actions taken today on the City's future. The City has experienced strong
revenue growth over the past ten years due to the development of the majority of its commercial sites. The
future will bring a few more commercial sites but at a slower pace, while residential development is
expected to slow over the next few years especially with the current weak housing market. There are also
quite a few City facilities - mainly parks and civic facilities - planned in the future to serve the growing
population. The new facilities will add operating costs to the City's General Fund budget as they are
completed and opened for use.
These factors alone will cause the General Fund costs to escalate at a higher rate than inflation. In addition,
a number of other factors, including health care costs, have created upward pressure on expenditures,
especially over the past several years. These factors have been incorporated into the General Fund forecast
shown below and projected over the next ten years. While no forecast is ever totally accurate, it does
represent a likely scenario given the assumptions on which it is built.
General Fund Revenues and Expenditures
Fiscal Year
This forecast assumes that revenue
growth will continue at a moderate
pace in 2008 and into the future.
To project the expenditures, the
10-year forecast includes all
known personnel costs including
any benefits negotiated with the
employee groups.
The forecast assumes 10%
increases in health care costs in
the near future, slowing to 5% in
the future. It also assumes
personnel growth (new positions)
to remain rather flat at no more than 2% per year. Cost of living increases between 3% and 5% have been
added to personnel costs. Pension plan costs are anticipated to remain essentially at current levels. It
assumes that the contribution from the General Fund to the Infrastructure Replacement Fund remains at
6.5% of General Fund revenues. And finally, it includes estimated operating costs for General Fund capital
projects in the timeframes shown in the Capital Improvement Program (CIP). One of the biggest
assumptions in the forecast is that services as reflected in the Fiscal Year 2008 Adopted Budget will remain
the same. No new services have been anticipated, although growth in current services to match the growing
population and increases in the consumer price index have been incorporated.
The results show that the General Fund is balanced into the future with a slight surplus in each year of 2%
to 7% depending on which year. This achieves the goal set out by Council to maintain a balanced budget.
The ability to understand the future impacts of both changes in revenue sources as well as program needs is
crucial to ensure that the City has the funds available to make its future plans come true. The General Fund
financial forecast is a tool available to the City to achieve the goal of managing its fiscal resources
effectively and monitoring the achievement of sustainable economic health for the City of Carlsbad.
Cash Management
" The City Treasurer is charged with the design of an effective cash management and investment program
consistent with legal requirements and the Carlsbad Investment Policy. The City annually adopts a
comprehensive investment policy specifying, among other things, investment objectives and strategy, type,
and term of investments, reporting requirements, and investment oversight. The City's investments
generally include federal agencies, corporate notes, and investments in the State Treasurer's investment
pool. The modified duration of the investments in the City's investment pool as of June 30, 2007 was
1.686. The average return realized on the pooled investments rose from 3.98% in Fiscal Year 2005-06 to
4.37% for Fiscal Year 2006-07.
Investment income shown in the financial statements includes changes in the fair value of investments as
required under GAAP. Increases or declines in fair value during the current year, however, do not
necessarily represent trends that will continue, nor is it always possible to realize such amounts. This is
especially true as the City holds most of its investments to maturity rather than selling them at fair value.
The graph at the right shows the amount of
unrealized income reflected in the portfolio
over the last few years. The total portfolio
had an unrealized loss in Fiscal Year 2006-07.
According to the City Treasurer, "The total
portfolio had less of an unrealized loss in FY
06-07 than in FY 05-06. This unrealized loss
occurred as investments with high interest
rates matured and were reinvested in slightly
lower market rates. It is likely that this trend
will decline slightly in FY 07-08 as
investments with higher interest rates are
called and reinvested at today's lower market
rates."
Major Initiatives
Public safety has always been, and remains, a top Council priority. After reviewing the current staffing
requirements and the population growth in the City, it was evident that there was a need to add new Public
Safety personnel to maintain the current service levels in the community. In Fiscal Year 2007-08, the
Police Department added four positions to serve the public and the Fire Department added one position.
Several significant projects are in design or under construction over the next few years. These include:
• The Alga Norte- Park and Aquatic Center consists of 30 acres in the
Southeast Quadrant with planned amenities that include ball fields, soccer
fields, picnic areas, tot lots, a skate park, a dog park, restrooms, parking
facilities, and an aquatic center. The aquatic center will include a 50-meter
competition pool, a 12-lane instructional pool and a therapy pool as well as
a water play area with slides. A swimming pool complex was one of the
projects approved by the voters through Proposition C in 2002. The total
cost of the park is estimated to be $22.1 million. The total cost of the
aquatic center is estimated to be $28.3 million. At this time, construction
is scheduled to start in early 2008. Construction will take approximately
two years.
Historical Unrealized Gains/Losses
as Percent of Amortized Cost
June 2002 - June 2007
| — Unreal SL%|
V \\
^~~~\^ ^,
\^-""'
Jur>02 Jun-04 Jun-05 Jun-06 JurvO?
• The construction is complete on the City's new 18-hole golf course, The Crossings at Carlsbad.
The golf course opened in the summer of 2007 and is located along the north side of Palomar
Airport Road at Hidden Valley Road.
The estimated cost for construction and start-up
expenses are $55 million. This destination public golf
course is 6,835 yards and includes a 28,000 sq. ft.
clubhouse and a practice center. Half of the 400-acre
site will be preserved for habitat and will help tie
together more than 1,000 acres of Open Space in the
central part of the City. The City has contracted with
Kemper Sports Management (KSM) for operations of
the course.
• A 20,000 square foot community facility and
gymnasium is planned for the Pine Park
Community Center. The facility will include basketball, volleyball, gymnastics, multi-purpose
rooms, meeting rooms, a teen center and office space. Design of this $9.4 million facility is
expected to begin in Fiscal Year 2009-10 and construction is still scheduled to begin in Fiscal Year
2010-11.
• Phase II of the 42-acre Poinsettia Park Community Center includes amenities such as a
community facility/gymnasium, enclosed soccer field, tot lot, picnic areas, tennis complex
including a clubhouse and stadium court, and additional parking. The total cost is expected to be
approximately $12.5 million and the project is scheduled to start in Fiscal Year 2010-11.
• Poinsettia Tennis Courts - Plans are currently underway to build seven tennis courts with
lighting at the Poinsettia Park. The facility will also receive additional parking and construction is
scheduled to begin in Fiscal Year 2008-09. The estimated cost of the Tennis Courts and Parking is
$2.1 million.
• The Public Works Center will include offices, shops, a yard, warehouse and parking to
accommodate the Public Works Department. Initial estimates put the cost at approximately $27.3
million.
• The Safety Training Center project was authorized under Proposition C, which was approved in
2002. Preliminary design work is currently underway. In addition to a shooting range, the facility
may include a fire training tower, residential training prop, and a fire administration building with
classroom and storage facilities. There is currently $950,000 budgeted for design only. Once the
design is complete, the construction budget will be developed and funding sources will need to be
identified.
• The Library Learning Center will provide a permanent location for the Adult Learning and the
Centre de Informacion programs. The existing building adjacent to Holiday Park will be
remodeled and a second story, approximately 5,000 square feet, will be added for a total cost of
$6.1 million.
Fire Station No. 6 Relocation - Fire Station No. 6 is currently
located in a temporary facility in the Southeast Quadrant of
Carlsbad. The relocation of this station to a new 6,200 square foot
permanent facility along the east side of Rancho Santa Fe Road is
progressing and a contract has been awarded for construction.
Total cost is approximately $5.8 million. This fire station is
required to help ensure a five-minute response time within the
southeast part of the City as development in that area occurs.
10
AWARDS AND ACKNOWLEDGEMENTS
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, 2006. This was the
ninth 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 GAAP 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.
This report has been a joint effort by many people from many different areas of responsibility. It could not
have been accomplished without their help and the dedicated efforts of all of the accounting staff, especially
Kevin Branca, Assistant Finance Director. I also appreciate the staff of Mayer Hoffman McCann for the
professional way in which the audit of this financial report was conducted. It has been a pleasure to work
with them throughout this period. Additionally, I would like to thank the City Council and the City's
Leadership Team for their leadership and unfailing support in maintaining the highest standards of
professionalism in the management of the City of Carlsbad's finances.
Respectfully submitted,
LISA IRVINE
Finance Director
11
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, 2006
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.
President
Executive Director
12
SOLANA BEACH
DEL MAR I 1-5
13
CITY OF CARLSBAD
ELECTED CITY OFFICIALS
Claude A. "Bud" Lewis, Mayor
Ann J. Kulchin, Mayor Pro Tem
Matt Hall, Council Member
Julie Nygaard, Council Member
Mark Packard, Council Member
Lorraine M. Wood, City Clerk
Harold "Mac" McSherry, City Treasurer
ADM1NISTRA TION AND DEPARTMENT HEADS
Lisa Hildabrand, Interim City Manager
James F. Elliott, Deputy City Manager
Glenn Pruim, Public Works Director
Sandra Holder, Community Development Director
Tom Zoll, Police Chief
Kevin Crawford, Fire Chief
Ron Ball, City Attorney
Julie Clark, Human Resources Director
Greg Clavier, Public Works Manager, General Services
Will Foss, Principal Building Inspector
Debbie Fountain, Housing & Redevelopment Director
Conrad "Skip" Hammann, Special Projects Director
Lisa Irvine, Finance Director
Robert Johnson, Deputy Public Works Director
Erin Letsch, Risk Manager
Donald Neu, Planning Director
Gordon Peterson, Acting Information Technology Director
Heather Pizzuto, Library Director
Ken Price, Recreation Director
Mark Stone, Deputy Public Works Director, Maintenance and Operations
CHAIRPERSONS, COMMISSIONS AND BOARDS
Heath Fox Arts Commission
Richard Erhardt Beach Preservation Committee
April Shute Carlsbad Tourism Business Improvement District Board
Bob Bender Community Television Foundation
Vacant Design Review Board
Sue Ladouceur Historic Preservation Commission
Vacant Housing Commission
Claude A. Lewis Housing and Redevelopment Commission
William Kamenjarin Library Board of Trustees
Jim Craig Parks and Recreation Commission
Donald Martin Personnel Board
Julie Baker Planning Commission
Jack Nelson Senior Commission
Vacant Serra Cooperative Library System Advisory Board
Jacquie Thye Sister City Committee
Susan Gardner Traffic Safety Commission
Vacant Underground Utility Advisory Committee
14
CITY OF CARLSBAD ORGANIZATION CHART , !Arts
Commission
Sister City
Committee
i DesignPersonnel
Board Historic
Preservation
Commission
ELECTORATE
Beach
Preservation
Committee
Housing [
mmission Library Board
of
TrusteesCITY
TREASURERCITY CLERKCommunity
Television
Foundation
ousingA ,
edevelopment iSerra Cooperative)
Library System
Advisory Board
,i Planning
i Commission i
Traffic
Safety
Commission Parks & Rec
Commission
CITY MANAGER CITY ATTORNEYUnderground
Utility Advisory
Committee
i Carlsbad
Tourism B.I.D.
i Advisory Senior
Commission
PUBLIC
SAFETY
ADMINISTRATIVE
SERVICES
PUBLIC
WORKS
COM.
DEVELOPME
COMMUNITY
SERVICES
ADMINISTRATION &
ENVIRONMENTAL
PROGRAMS
RECREATION
ENGINEERING
SERVICES
HUMAN
RESOURCES
ECONOMIC
DEVELOPMENT
LIBRARY &
THE ARTS
INFORMATION
TECHNOLOGY
GENERAL
SERVICES
GEOGRAPHIC
INFO SYSTEMS
RISK
MANAGEMENT
MAINTENANCE &
OPERATIONS
HOUSING AND
REDEVELOPMENT
RECORDS
MANAGEMENT
Elected
Council Appointed"-"'
Staff Support
Reporting Relationship—
Programs Rev 1/19/06
16
Introductory Section
Financial Section
Statistical Section
MHM Mayer Hoffman McCann P.C.
An Independent CPA Firm
Conrad Government Services Division
2301 Dupont Drive, Suite 200
Irvine, California 92612
949-474-2020 ph
949-263-5520 fx
www.mhm-pc.com
City Council
City of Carlsbad, California
Independent Auditors' Report
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Carlsbad, California, as of and for the year ended June 30, 2007, which collectively
comprise the City's basic financial statements, as listed in the table of contents. These financial
statements are the responsibility of the management of the City of Carlsbad. Our responsibility
is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in 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
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Carlsbad, California, as
of June 30, 2007, and the respective changes in financial position and cash flows, where
applicable, of the City of Carlsbad, California and the respective budgetary comparison
information for the general fund of the City for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
The information identified in the accompanying table of contents as management's discussion
and analysis and required supplementary information are not a required part of the basic
financial statements, but are supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Carlsbad's basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements and other schedules, and
statistical tables are presented for purposes of additional analysis and are not a required part of
the basic financial statements. The combining and individual nonmajor fund financial statements
and other schedules have been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, are fairly stated in all material respects in relation
to the basic financial statements taken as a whole. The introductory section and statistical tables
have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
17
MHM
City Council
City of Carlsbad, California
Page Two
In accordance with Government Auditing Standards, we have also issued a report dated
November 19, 2007 on our consideration of the City's internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts, grant
agreements, and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
Vr&iur-i srf* sSv
Irvine, California
November 19,2007
m
m
18
Management's Discussion and Analysis
As management of the City of Carlsbad ("City"), we offer readers of the City's financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2007. Our intent is to
assist the reader of these financial statements in better understanding the impact of financial decisions made by the
City. This analysis will focus on the significant changes in an effort to explain the City's overall financial condition.
We encourage readers to consider the information presented here in conjunction with the additional information
furnished in our letter of transmittal.
Overview of the Financial Statements
Required Components of the City of Carlsbad's
Annual Financial Report
Management 's
Discussion
and
Analysis
1i
Basic
Financial
Statements
1
Required
Supplementary
Information
This section of the annual report consists of
four parts - management's discussion and
analysis (this section), the basic financial
statements, required supplementary
information, and an optional section that
presents combining statements for non-
major governmental funds and internal
service funds. The basic financial
statements include two kinds of statements
that present different views of the City.
• The first two statements are
Government-wide Financial Statements
that provide both long-term and short-
term information about the City's
overall financial status.
• The remaining statements are Fund
Financial Statements that focus on
individual parts of the City government,
reporting the City's operations in more
detail than the Government-wide
Statements.
> The Governmental Funds
Statements detail how general
government services such as public
safety were financed in the short term as well as what remains for future spending.
> Proprietary Fund Statements offer short- and long-term financial information about the activities the City
operates like businesses, such as the water and wastewater services.
> Fiduciary Fund Statements provide information about the financial relationships - such as contractor and
miscellaneous deposits - in which the City acts solely as a trustee or agent for the benefit of others to
whom the resources belong.
The financial statements also include notes that explain some of the information in the financial statements and
provide more detailed data. The statements are accompanied by required supplementary information that further
explains and supports the information in the financial statements. In addition to these required elements, we have
included a section with combining fund statements that provide detail about our non-major governmental funds,
internal service funds, and fiduciary funds, which are added together and presented in single columns in the basic
financial statements.
The remainder of this overview section of management's discussion and analysis explains the structure and contents
of each of the statements.
. :
,... . . 'i
* 1 .... 1 ,
Government-
wide Financial
Statements
Fund
Financial
Statements
Notes
to the
Financial
Statements
Summary Detail
19
Government-wide Financial Statements
The Government-wide Financial Statements report information about the City as a whole using accounting methods
similar to those used by private-sector companies. The Statement of Net Assets includes all of the City's assets and
liabilities. All of the current year's revenues and expenses are accounted for in the Statement of Activities
regardless of when cash is received or paid.
The two Government-wide Financial Statements report the City's net assets and how they have changed. Net assets
• the difference between the City's assets and liabilities - are one way to measure the City's financial health, or
position. Over time, increases or decreases in the City's net assets are an indicator of whether the City's financial
health is improving or deteriorating, respectively. One needs to consider additional non-financial factors, such as
changes in the City's property tax base and the condition of the City's infrastructure, to assess the overall health of
the City.
The Government-wide Financial Statements of the City are divided into two categories:
• Governmental activities — Most of the City's basic services, such as police, fire, public works, community
services, community development, and general administration, are included here. Taxes, revenues from other
governments and agencies, income from property and investments, grants and contributions, and charges for
services finance most of these activities.
• Business-type activities - The City charges fees to customers to cover the costs of certain services it provides.
The City's water, wastewater, solid waste services and municipal golf course are the primary business-type
activities.
Fund Financial Statements
The Fund Financial Statements provide more detailed information about the City's most significant funds — not the
City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and
spending for particular purposes.
Some funds are required by State law and bond covenants, while the City establishes other funds to control and
manage money for particular purposes (such as the developer impact fee funds) or to show that it is properly using
certain taxes and grants (such as the Section 8 Rental Assistance Fund).
The City has three kinds of funds:
• Governmental funds - Most of the City's basic services are included in governmental funds. These funds are
used to account for (1) cash and other financial assets that can readily be converted to cash flow in and out,
and (2) balances left at year-end that are available for spending. Consequently, the Governmental Funds
Statements provide a detailed short-term view that helps the reader determine the amount of financial resources
that can be spent in the near future to finance the City's programs. These statements are presented on a
modified accrual basis of accounting. A reconciliation between the long-term and short-term focus of the
Government-wide Financial Statements is provided immediately following each statement. There are currently
four governmental fund types being used by the City: the General Fund, special revenue funds, debt service
funds and capital project funds.
• Proprietary funds - Services for which the City charges customers a fee are generally reported in proprietary
funds. Proprietary funds, like the Government-wide Financial Statements, provide both long- and short-term
financial information, and are presented on an accrual basis of accounting.
> There are two types of proprietary funds: enterprise funds and internal service funds.
> We use enterprise funds to report activities that provide business-type services, generally to external
customers - such as water, wastewater, trash and golf services. In both the Government-wide Financial
Statements and the Fund Financial Statements, these funds are shown under business-type activities.
20
> We use internal service funds to report activities that provide services and supplies for the City's other
programs and activities - such as fleet, self-insured benefits, and information technology.
• Fiduciary funds - These funds are used to account for situations where the City's role is purely custodial, such
as the receipt, temporary investment, and remittance of fiduciary resources to individuals, private
organizations, or other governments. All of the City's fiduciary activities are reported in a separate Statement
of Fiduciary Assets and Liabilities. We exclude these activities from the City's Government-wide Financial
Statements because the City cannot use these assets to finance its operations.
Financial Analysis of the City as a Whole
Net Assets
The City's combined net assets as of June 30, 2007, as shown below, were $1.4 billion. The City's net assets
increased by $102.9 million during the current fiscal year. Approximately 28% of this increase represents the
degree to which increases in operating revenues have exceeded increases in operating expenses. Approximately
72% represents one-time capital grants and contributions received by the City for the purchase and acquisition of
infrastructure and other capital assets.
CITY OF CARLS BAD'S NET ASSETS
(in millions of dollars)
Governmental Business-Type
Activities
Current and other assets
Capital as sets
Total assets
Long-term debt outstanding
Other liabilities
Total liabilities
Net assets
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net as sets
2006
$432.4
617.6
1,050.0
13.1
23.0
36.1
604.1
212.1
197.7
$1,013.9
2007
$474.8
658.4
1,133.2
13.1
20.0
33.1
646.0
221.4
232.7
$1,100.1
Activities
2006
$99.4
250.5
349.9
15.9
13.8
29.7
234.5
107.9
(22.2)
$320.2
2007
$109.0
305.4
414.4
54.0
23.5
77.5
253.6
47.2
36.1
$336.9
Total
2006
$531.8
868.1
1,399.9
29.0
36.8
65.8
838.6
320.0
175.5
$1,334.1
2007
$583.8
963.8
1,547.6
67.1
43.5
110.6
899.6
268.6
268.8
$1,437.0
Total
Percentage
Change
2006-07
9.8%
11.0%
10.6%
131.4%
18.2%
68.1%
7.3%
-16.1%
53.2%
7.7%
As noted earlier, net assets may serve over time as a useful indicator of the City's financial position. For the City of
Carlsbad, assets currently exceed liabilities by $1.4 billion at the close of the most recent fiscal year.
A large portion of the City's net assets (63%) reflects its investment in capital assets (i.e., land, buildings,
machinery, equipment, and infrastructure), less any related debt used to acquire those assets that are still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City's investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources since the capital
assets themselves usually won't be used to liquidate these liabilities.
An additional portion of the City's net assets (19%) represents resources that are subject to external restrictions on
how they may be used. The remaining balance of unrestricted net assets ($268.8 million) may be used to meet the
government's ongoing obligations to citizens and creditors.
21
Just under 59% of the $232.7 million in unrestricted governmental activities net assets is attributable to the General
Fund. Unrestricted net assets for the City's business activities increased by $58.3 million during Fiscal Year 2006-
07. Beginning in Fiscal Year 2006-07, the City began reflecting funds set aside for the replacement of water and
wastewater infrastructure as unrestricted net assets, since these funds are not restricted per the GASB. The deficit
unrestricted net assets at the end of Fiscal Year 2005-06 were the result of the General Fund advancing money to the
Golf Course and Solid Waste funds.
Changes in Net Assets
The condensed summary of activities, which follows, shows that net assets increased by $102.9 million during the
year. This increase occurs when spending is less than the revenues received. There were several reasons for the
increase in net assets: an emphasis on efficiencies resulting in a reduction in expenses/expenditures, $15.5 million in
"savings" in the General Fund being carried forward into the new fiscal year by various major service areas within
the City to enhance and provide for future services and programs, the build-up of cash reserves in the City's capital
project and enterprise funds for future capital project construction and acquisition, revenues received in the City's
special revenue funds for future services and programs, and the donation of infrastructure assets from developers.
CITY OF CARLS BAD'S CHANGES IN NET ASSETS
(in millions of dollars)
Governmental Business -type
Activities
Revenues
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Property taxes
Sales and use taxes
Other taxes
Income fromproperty and investments
Other
Total revenues
Expenses
General government
Public safety
Community development
Community services
Public works
Interest on long-term debt
Carlsbad Municipal Water District
Wastewater
Other business-type activities
Total expenses
Excess (deficiency) before transfers
Transfers
Increase (decrease) in net assets
Beginning net assets
Ending net as sets
2006
$18.1
12.1
39.3
43.9
25.4
21.9
11.7
1.3
173.7
15.4
35.8
14.3
16.8
36.0
1.0
-
-
-
119.3
54.4
(0.3)
54.1
959.8
$1,013.9
2007
$17.2
17.6
49.3
49.3
27.4
22.6
21.5
1.3
206.2
12.3
38.3
13.9
17.9
37.3
0.7
-
-
-
120.4
85.8
0.4
86.2
1,013.9
$1,100.1
Activities
2006
$28.2
0.7
11.2
2.3
-
-
3.5
0.1
46.0
-
-
-
-
-
-
24.1
8.3
4.2
36.6
9.4
0.3
9.7
310.5
$320.2
2007
$31.7
2.3
25.1
2.5
-
-
7.6
-
69.2
-
-
-
-
-
-
40.4
9.6
2.1
52.1
17.1
(0.4)
16.7
320.2
$336.9
Total
2006
$46.3
12.8
50.5
46.2
25.4
21.9
15.2
1.4
219.7
15.4
35.8
14.3
16.8
36.0
1.0
24.1
8.3
4.2
155.9
63.8
-
63.8
1,270.3
$1,334.1
2007
$48.9
19.9
74.4
51.8
27.4
22.6
29.1
1.3
275.4
12.3
38.3
13.9
17.9
37.3
0.7
40.4
9.6
2.1
172.5
102.9
-
102.9
1,334.1
$1,437.0
Total
Percentage
Change
2006-07
5.6%
55.5%
47.3%
12.1%
7.9%
3.2%
91.4%
-7.1%
25.4%
-20.1%
7.0%
-2.8%
6.5%
3.6%
-30.0%
67.6%
15.7%
-50.0%
10.6%
61.3%
61.3%
5.0%
7.7%
22
t
i
i
City of Carlsbad
Sources of Revenue for Fiscal Year 2006-07
$275.4 Million
Grants/
Contributions (25%)
Income from Property and
Investments (11%)
Other Taxes (3%)
TOT (5%)
Other (1%)
Property Taxes (19%)
Charges for Services (18%)
Sales Tax (10%)
Federal Aid (6%)
State Aid (2%)
Just over 48% of the revenues of the
City's governmental funds are
generated through taxes collected
(property, sales, transient occupancy
tax, etc.), and just under 46% of the
City's business-type revenue is
generated through charges for services.
The chart to the right graphically
depicts the City's revenue sources.
A major factor in the large increase in
operating grants and contributions was
the $6.3 million reimbursement the City
received from the Federal Highway
Administration for reimbursement of
the 2005 winter storm damage in the
City. In addition, developers in La
Costa Greens, La Costa Oaks, La Costa
Ridge, Calavera Hills, and Bressi Ranch contributed over $48 million in infrastructure to the City in Fiscal Year
2006-07, accounting for the large increase in capital contributions. Income from property and investments was
impacted by a 41% increase in the fair market value of investments adjustment made at June 30, 2007 as compared
to the previous year end adjustment (GASB 31 application), a 10% increase in the average yield on the Treasurer's
portfolio for the fiscal year, an overall increase in the City's total cash of just under 10% for the year, and interest
earned by the General Fund on the advance from the City's General Fund to the Golf Course Fund.
The total cost of all programs and services was just under $173 million in Fiscal Year 2006-07. Some of the
significant factors affecting the change in expenses from Fiscal Year 2005-06 to Fiscal Year 2006-07 included the
cost of the 2005 winter storms in the previous fiscal year (reduction in general government expenses), the transfer of
tourism funding from the General Fund to the Carlsbad Tourism Business Improvement District Agency Fund (a
reduction in Community Development expenses), the City settled a lawsuit regarding a landslide at the Marbella
Condominiums for $11.3 million (increase in Carlsbad Municipal Water District expenses), the transfer of funds
from the enterprise funds to the Self Insured Benefits Fund for the proposed funding of retiree healthcare costs as
required under GASB 45 (an increase in CMWD and wastewater expenses), and the capitalization of interest
expense on the construction of the golf course (a reduction in Golf Course Fund expenses). The City's expenses
cover a range of services:
Wastewater
6%
General
Government
7%
General Government (7%)
This segment of the City is divided into two major groups,
the Policy and Leadership group and the Administrative
Services group. The Policy and Leadership group
encompasses all elected officials, the chief executive offices
for the City and the Communications team. The
Administrative Services group includes Finance, Human
Resources, Information Technology, Risk and Records
Management.
Public Safety (22%)
Public Safety has always been a top City Council priority.
This major service area includes the Police Department,
whose goal is to provide quality service to the community to
ensure the preservation of life and property and the
maintenance of law and order. The Fire Department is also
part of this major service area with a mission to enhance the
quality of life by delivering exceptional services in safeguarding lives, property, and our environment.
City of Carlsbad
Functional Expenses for Fiscal Year 2006-07
$172.5 Million
Public Safety
22%
Community
Development
8%
Public Works
22%
Community
Services
10%
23
• Community Development (8%)
The mission of Community Development is helping people build a strong community by guiding and
facilitating high quality projects, preserving the environment, providing for diverse housing and employment,
and maintaining a strong economic base. Community Development encompasses the Land Use Planning,
Geographic Information Systems (GIS), Economic Development, the Hiring Center, Housing and
Redevelopment, and Building Inspection.
• Community Services (10%)
Community Services consists of the Libraries, Cultural Arts, Recreation, Park Planning, and Senior Citizen
programs. These programs are provided to a wide range of people and assist in their education and cultural
development.
• Public Works (22%)
Public Works is responsible for building and maintaining all of the infrastructure assets of the City. This
service area includes Engineering, Parks, Streets, Medians, Street Trees, the Buena Vista Channel, and
Facilities Maintenance, Building Maintenance, Street Lighting and Traffic Sign and Signal Maintenance
programs.
• Water Operations (23%)
The Carlsbad Municipal Water District, a subsidiary of the City of Carlsbad, provides potable and recycled
water service to approximately 85% of the City (approximately 27,000 customers). The District purchases
100% of its potable water as treated water from the Metropolitan Water District and the San Diego County
Water Authority. The District also provides recycled water for irrigation purposes.
• Wastewater Operations (6%)
The City of Carlsbad operates and maintains a sanitary sewer collection system, which covers approximately
65% of the geographic area of the City. Sewage is treated by the Encina Wastewater Treatment Plant, a
facility jointly owned by the Cities of Carlsbad and Vista, the Leucadia County Water District, the Vallecitos
Water District, the Buena Vista Sanitation District, and the Encinitas Sanitary District.
• Other Expenses (2%)
Other expenses include costs associated with the City's Solid Waste division, the City's Storm Water
Protection Program, development of the City's new municipal golf course, and interest expense of the City's
long-term debt that is associated with governmental activities.
The following sections will provide information about the operations of the governmental and business-type
activities separately.
Governmental Activities
The increase in net assets for governmental activities was $86.2 million. This increase was generated by total
revenues of governmental activities of $206.2 million ($84.1 million in program revenues and $122.1 million in
general revenues) offset by $120.4 million in total costs of governmental activities and a $400,000 transfer in from
the Water Fund.
The table on the next page presents the total cost of each of the City's major programs, as well as each function's
program revenue (fees generated by the activities, contributions, and intergovernmental aid). The net cost (the
difference between adjoining bars in the graph) shows the financial burden that was placed on the City's taxpayers
by each of these functions (costs covered by general revenues).
24
Governmental Activities
Program Revenues and Expenses
Rscal Year 2006-07
(in millions)
^ Program Revenues
H Expenses
General Public Safety Community Community Public Works
Government Development Services
Revenues are generated through several sources to cover the cost of the City's programs. These revenues include
fees and charges paid by those who directly benefit from the programs ($17.2 million), grants and contributions
from other governments and organizations which subsidize certain programs ($66.9 million), and taxes and other
revenues (such as income from property and investments) received by the City to pay for the "public benefit"
portion, totaling $122.1 million.
Program revenues exceed expenses in Public Works. The majority of Public Works revenues are used to acquire
and build capital assets (versus covering operating expenses) that have not yet been constructed. Capital assets are
generally constructed or purchased once sufficient revenue has been accumulated to pay for the cost. The City is
currently in a developing or growing stage, and master plans are continuing to be designed to construct these new
facilities, roads, parks, and other City-owned infrastructure.
Business-Type Activities
Business-Type Activities
Program Revenues and Expenses
Fiscal Year 2006-07
(in millions)
^ Program Revenues
• Expenses
Water Wastewater Solid Waste
Program revenues for the City's business-type activities totaled $59.1 million for the year, while functional expenses
equaled $52.1 million. The City golf course has recently been completed, so the program revenues and functional
25
expenditures are still minimal, and therefore not shown on the graph above. The course opened to the public in
August 2007.
Water program expenses are unusually high in Fiscal Year 2006-07 due to two one-time expenses previously
mentioned: CMWD settled a lawsuit regarding a landslide at the Marbella Condominiums for $11.3 million and the
Water funds transferred money to the Self Insured Benefits Fund for the proposed funding of retiree healthcare costs
as required under GASB 45. Wastewater program revenues are higher than program expenses primarily due to
capital contributions in the form of capital connection fees, and developer constructed assets donated to the City.
Capital construction expenses are spread over the life of an asset as annual depreciation charges (program expenses).
A more detailed discussion of each of the enterprises can be found in the Proprietary Funds Section.
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. In the current Comprehensive Annual Financial Report (CAFR), no changes were made in the
reporting of any funds.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City's financing requirements. In particular,
unreserved fund balances may serve as a useful measure of a government's net resources available for spending at
the end of the fiscal year.
Governmental Fund Balances
(in millions)
Reserved for Advanc. $418.1 Million
to Other Funds
($66.6 million)
s—^ "^N./ \ Undesignated ($110.5 million)Reserved for Other Purposes -^ ^
($18.9 million)
Designated for Future Continuing
Appropriations
($110.0 million)
Designated for Approved
Capital Projects
($96.7 million)
Reserved to Liquidate Contracts and
Purchase Orders
($15.4 million)
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$418.1 million, an increase of $33.7 million in comparison with the prior year. Approximately 27% of this amount
($110.5 million) constitutes undesignated fund balance, which is available for spending at the government's
discretion based on the purpose for which it was received. The remainder of the fund balance is reserved or
designated to indicate that it is not available because it has already been committed (1) for future capital projects -
23%, (2) to liquidate contracts and purchase orders of the prior period - 4%, (3) for future programs - 26%, (4)
advances to other funds - 16% or (5) for a variety of other restricted purposes - 4%.
26
The General Fund is the
main operating fund of the
City, and at the end of the
fiscal year had a total fund
balance of $122.6 million,
an increase of $16.0 million.
The unreserved fund balance
portion of the General Fund
was $66.1 million, of which
$13.9 million was
designated for future
programs and service
enhancements.
The increase in revenues
was primarily due to the
effects of a strong housing
market (both resales and the
construction of new homes)
during the past couple of
years on property taxes,
continued strength in the
tourism industry and the
expansion of the La Costa
Resort & Spa (higher
transient occupancy tax),
reimbursements received
from the Federal Highway
Administration (FHWA) for
the 2005 winter storm
damage in the City, interest received from the Golf Course Fund on the advance from the General Fund, and
unrealized gains on the City's investments (required to be reported under GASB 31). The largest factor in the
decrease in license and permit revenues can be attributed to the slowdown in the building industry. For Fiscal Year
2006-07, 472 residential permits were issued, as compared to 943 permits issued during last fiscal year. Other
financing sources revenue of $ 1.4 million represented the sale of a piece of residential property that was donated to
the City last fiscal year.
The increase in General Fund expenditures were driven by the following factors:
• Normal salary and benefit increases.
• An increase in police staffing and additional police overtime for added enforcement in downtown Carlsbad.
• The purchase of a new and a reserve ambulance.
• The proposed funding of retiree healthcare costs as required under GASB 45.
• A large decrease in expenditures to repair severe damage caused by the heavy rains from the 2005 winter
storms.
• An increase in sidewalk, curb, gutter and street repairs.
• Continued focus on traffic signal maintenance and battery backup upgrades.
• Additional maintenance expenditures related to the newest City parks: Aviara Community Park and Hidden
Canyon Park.
• Additional funds transferred to the Infrastructure Replacement Fund for the future major maintenance and
replacement of City infrastructure.
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
(in millions of dollars)
IN FUND BALANCE
Total
Increase Percentage
Total (Decrease)
Rewnues
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Income from property and investments
Miscellaneous
Total rewnues
Expenses
General government
Interdepartmental charges
Public safety
Community development
Community services
Public works
Total expenses
Excess (deficiency) before transfers
Other financing sources (uses)
Transfers
Increase (decrease) in fund balance
Beginning fund balance
Ending fund balance
2006
$87.2
1.1
2.5
7.8
1.1
2.4
1.3
103.4
16.1
(2.6)
36.2
7.1
15.4
18.0
90.2
13.2
0.0
(6.0)
7.2
99.4
$106.6
2007
$94.1
9.3
2.1
7.6
1.3
5.9
0.7
121.0
17.8
(2.1)
39.6
6.9
16.4
20.3
98.9
22.1
1.4
(7.5)
16.0
106.6
$122.6
20(
$6.9
8.2
(0.4)
(0.2)
0.2
3.5
(0.6)
17.6
1.7
0.5
3.4
(0.2)
1.0
2.3
8.7
Change
)6-07
7.9%
745.5%
-16.0%
-2.6%
18.2%
145.8%
-46.2%
17.0%
10.6%
-19.2%
9.4%
-2.8%
6.5%
12.8%
9.6%
27
One major governmental fund, the Redevelopment Debt Service Fund, had a negative fund balance of just over
$12.9 million. This deficit was created when the City's General Fund loaned the agency money to cover debt
service charges during the period soon after the agency's bonds were issued, but prior to the agency being able to
support the debt service with property tax increment revenues alone. Over the past couple of fiscal years, the agency
has begun to repay the $14.9 million advance back to the City's General Fund, as the tax increment collected within
the redevelopment area grows.
Of the six remaining major governmental funds, only one fund saw their fund balance decline during the fiscal year.
The Assessment and Other Districts Funds purchased several large infrastructure assets including Poinsettia Lane,
and Melrose Drive.
The five remaining major governmental funds, which are all capital project funds, had increases in their fund
balances during the year. These increases in fund balances are predominantly designated for the construction or
purchase of future capital assets.
Proprietary Funds
The purpose of the City's proprietary funds is to provide short and long-term financial information about the City's
business-type activities. The analysis focuses on the determination of operating income, changes in net assets (cost
recovery), financial position, and cash flows.
Business-Type Activities
Operating Revenues and Expenses
Rscal Year 2006-07
(in millions)
^ Op crating Revenues
• Op crating Exp enses
Water Wastewater Solid Waste
The Carlsbad Municipal Water District (CMWD) funds had an operating loss of approximately $16.0 million for the
year. Although water sales increased by almost 15% for the year from a combination of a 5% rate increase and an
8% increase in the number of units sold, CMWD also settled a lawsuit (including attorney costs) during the same
time period regarding a landslide at the Marbella Condominiums for $11.3 million. Another factor impacting the
expenses in the water funds was the transfer of $2.8 million from the CMWD funds to the Self Insured Benefits
Fund (shown as general and administrative expenses in the financial statements) for the proposed funding of retiree
healthcare costs as required under GASB 45. Increased fixed and variable costs from Metropolitan Water District
and the San Diego County Water Authority (suppliers of the City's potable water), as well as increased depreciation
expense due to newly constructed infrastructure assets, added to the operating loss for the year. In addition, the
Carlsbad Water Recycling Facility was operational for all of Fiscal Year 2006-07, resulting in increased operating
revenues and costs associated with the facility.
The Wastewater Funds had an annual operating loss of approximately $1.4 million for the fiscal year. Total
revenues from operations increased 16% from the previous year; the result of an 8.5% rate increase, as well as
additional revenues received from the City of Vista to reimburse the City for their share of a wastewater project.
However, the settlement costs with a contractor for the construction of a wastewater interceptor, increased
depreciation expenses, the transfer of funds to the Self Insured Benefits Fund for the proposed funding of retiree
28
healthcare costs as required under GASB 45 (shown as general and administrative expenses in the financial
statements), and higher wastewater plant operating costs, led to an operating loss for the year. Non-operating
revenues (investment earnings) more than offset the operating loss, resulting in a gain of $ 1.7 million for the year.
Solid Waste operations and the Storm Water Protection Program are combined on the City's financial reports, and
showed a slight operating income for the year of $107,000. Revenues increased slightly in the current year by
approximately 4%. This increase is the result of additional customers receiving solid waste services in the City, as
the City did not increase solid waste fees during the year. Operating costs increased 12% due to inflationary
increases, the expansion of the Storm Water Protection Program and enhanced Solid Waste and recycling efforts.
The construction of the City's municipal golf course was nearly complete by the end of fiscal year, and opened to
the general public in August 2007. The Golf Course Fund issued $18.5 million in bonds during the year, with the
first debt service payment due in September 2007. During the construction phase of the project, the City capitalized
a portion of the interest expense incurred on the loan from the City's General Fund, netting an interest expense of
only $191,000 for the year. The loan from the City and the bond proceeds are anticipated to be repaid through user
fees and other revenues of the golf course. If the golf course net revenue is not sufficient to cover the debt service
payment, the General Fund will make the payment.
Unrestricted net assets for the Water, Wastewater, and Solid Waste operations at the end of the year amounted to
$81.8 million, or approximately a quarter of the net assets of these proprietary funds. These assets will be used for
future rate stabilization efforts, any emergency situations and the replacement of infrastructure assets.
Approximately 14% of the net assets of all the proprietary funds are restricted for future capital construction of new
water and wastewater infrastructure assets. As the funding for the replacement of infrastructure assets is not
restricted, it is reflected in the Statement of Nets Assets as unrestricted. However, the City accounts for these
amounts in separate funds, and monitors the balances maintained to ensure that water and wastewater assets can be
replaced when needed. The unrestricted net assets in the Golf Course Fund represent funds advanced from the
City's General Fund that can be used for either the construction or pre-opening operating costs of the municipal golf
course.
General Fund Budgetary Highlights for Fiscal Year 2007
Management monitors revenues during the year and updates estimated revenue figures when new information is
received by the City. Estimated revenues were increased during this year by $2.3 million to reflect the net effect of
the following changes:
• The impacts on TOT from continued strength in the tourism industry and the expansion of the La Costa Resort
&Spa.
• A slow down in the sale of new automobiles, affecting the City's sales tax revenues.
• Increased charges for planning services from the development activities at Robertson Ranch.
• A 10% increase in the average yield on the Treasurer's portfolio for the fiscal year.
The increase from the total original expenditure budget to the final budget amounted to $5.3 million, due
predominantly to:
• The transfer of funds from the General Fund to the Self Insured Benefits Fund for the proposed funding of
retiree healthcare costs as required under GASB 45.
• Appropriating funds received from developers during the year for developer-funded studies.
• Budgeted expenditures associated with new grant revenues.
• Appropriating donations received.
• Appropriating additional sales tax revenues received as a result of sales tax auditing.
The difference between the final budgeted expenditures and the actual expenditures for the year on a budgetary basis
of $15.5 million can be generally summarized as follows:
29
• $13.9 million in "savings" by the various major service areas within the City. Current year savings were
generated from:
> Unfilled vacancies.
> Overall awareness of fiscal responsibility throughout the City.
> Deferral of projects.
<« $ 13.9 million in "savings" are planned to be used for:
=> Financial information system software upgrade.
=> Human resources information system software upgrade.
=> Additional technology and software upgrades at the various City facilities.
=> Future replacement of the Police Department's 800 MHz radios and department-issued guns.
=^> Upgrading the heating and air conditioning systems at several City facilities.
=> Installation of energy retrofits at the Safety Center.
=> Continuing the installation of emergency backup systems in the City's traffic signals.
=> Construction of picnic shelters at Poinsettia and Calavera Parks.
=> Enhancing security features at the various parks throughout the City.
• $1.6 million in unspent budget was not carried forward into Fiscal Year 2007-08. This represents items that,
according to the City's Budget Policy, are outside of the normal Block Budgeting Program, and therefore are
not eligible to be carried forward into the new fiscal year.
For purposes of budgetary presentation, actual revenues have been adjusted to exclude unrealized gains and losses
pursuant to GASB 31, and transfers in have been adjusted to reflect any transfer that was approved through the
budget process as a revenue, but recorded as an advance in the financial statements; actual expenditures have been
adjusted to include remaining encumbrances, and transfers out have been adjusted to reflect any transfer that was
approved through the budget process as an expenditure but recorded as an advance in the financial statements.
Capital Asset and Debt Administration
Capital Assets
At the end of Fiscal Year 2006-07, the City had recorded an investment of just over $963.8 million in a broad range
of capital assets, including park facilities, land, buildings, roads, bridges, drainage facilities, water and sewer lines,
police and fire vehicles, and other maintenance equipment. This number includes infrastructure assets of the general
government which are required per GASB 34.
CITY OF CARLSBAD'S CAPITAL ASSETS
(in millions of dollars)
Governmental Business-Type
Activities
Land
Construction in progress
Buildings and other structures
Improvements other than buildings
Machinery and equipment
Infrastructure
Wastewater treatment facility
Accumulated depreciation
Total
2006
$128.6
101.4
69.5
28.3
23.0
409.7
-
760.5
(142.9)
$617.6
2007
$128.1
111.3
70.2
30.2
26.5
447.0
-
813.3
(154.9)
$658.4
Activities
2006
$8.7
77.7
16.9
5.6
1.5
169.6
39.5
319.5
(69.0)
$250.5
2007
$8.7
81.4
20.2
5.6
2.0
216.3
44.9
379.1
(73.7)
$305.4
Total
2006
$137.3
179.1
86.4
33.9
24.5
579.3
39.5
1,080.0
(211.9)
$868.1
2007
$136.8
192.7
90.4
35.8
28.5
663.3
44.9
1,192.4
(228.6)
$963.8
Total
Percentage
Change
2006-07
($0.5)
13.6
4.0
1.9
4.0
84.0
5.4
112.4
(16.7)
$95.7
Change
2006-07
-0.4%
7.6%
4.6%
5.6%
16.3%
14.5%
13.7%
10.4%
7.9%
11.0%
30
This year's major capital asset additions included:
• Pipes, pump stations and appurtenances related to the new Recycled Water Flow Equalization Facility
• Mahr Reservoir improvements
• Calavera Hills pump station
• Developer-dedicated streets, drainage facilities, traffic signals, water and sewer lines and streetlights
• Completion of Hidden Canyon Park
• Seismic retrofitting of the Carlsbad Blvd. bridge
• Cole Library heating and air conditioning replacement
• Construction of the municipal golf course
• Construction of the library learning center
• Construction of Pine Avenue Park
• Development of the Coastal Rail Trail
• Intersection improvements at El Camino Real and Faraday Avenue
• Acquisition of the easterly extension of Poinsettia Lane, northerly extension of Melrose Drive and the
widening of Palomar Airport Road
• Continued development of Rancho Santa Fe Road
In addition to carrying forward appropriations of $150.7 million for previously budgeted projects, the City's Fiscal
Year 2007-08 capital budget appropriates an additional $32.8 million for capital projects. These additional
appropriations are principally for park development, completion of the municipal golf course, construction of fire
station #6, the pavement management program, Faraday Avenue extension, El Fuerte extension, Poinsettia Lane
extension, miscellaneous street projects, Lake Calavera reservoir improvements, enhancing the sewer collection
system, additional water lines, traffic signals, and miscellaneous civic projects, loans and repayments. These
projects will be financed by development fees, infrastructure and replacement transfers from the General Fund,
special district fees and taxes, water and sewer replacement reserves, and other sources including grants and
contributions from other agencies. More detailed information about the City's capital assets is presented in Note 6
to the financial statements and in the City's Capital Improvement Program document, which can be obtained from
the Finance Department.
Long-Term Debt
At year-end, the City had $67.1 million in bonds, certificates of participation, loans, capital leases and agreements,
an increase of $36.0 million from last year, as shown in the table below. The increase in debt is attributable to
additional loans made by the State Water Resources Control Board to the Carlsbad Municipal Water District for
construction of the new recycled water facility, the issuance of $18.5 million in bonds for the construction of the
City's new municipal golf course, and capital leases for the purchase of golf course equipment. More detail about
the City's long-term liabilities is presented in Note 8 to the financial statements.
CITY OF CARLSBAD'S OUTSTANDING DEBT
(in millions of dollars)
Governmental Business-Type
Activities
Bonds
Certificates of participation
Loans
Installment purchase agreement
Obligations under capital leases
Less: Deferred charges/discounts
Total
2006
$12.1
2.1
-
-
-
-
$14.2
2007
$11.7
1.4
-
-
-
-
$13.1
Activities
2006
$0.0
-
10.6
6.7
(0.4)
$16.9
2007
$18.5
-
29.1
6.1
0.7
(0.4)
$54.0
Total
2006
$12.1
2.1
10.6
6.7
-
(0.4)
$31.1
2007
$30.2
1.4
29.1
6.1
0.7
(0.4)
$67.1
Total
Percentage
Change
2006-07
149.6%
-33.3%
174.5%
-9.0%
100.0%
0.0%
115.8%
31
Economic Factors and Next Year's Budgets and Rates for Fiscal Year 2007
• The State of California adopted its Fiscal Year 2007-08 Annual Budget with the following provisions affecting
the City:
> The State implemented the "Triple Flip" in Fiscal Year 2004-05, whereby the City's sales tax receipts
were reduced by one-quarter, and this reduction was made up with property taxes equating to the same
amount. This will continue in the 2007-08 Fiscal Year.
> The "Triple Flip" swap will have no effect on the ultimate amount of revenue the City receives, but it will
result in a delay in the timing of the receipt of money by the City.
> No additional "contributions" from cities are included in the State's Fiscal Year 2007-08 Annual Budget.
• Net assessed values in the City stand at almost $22.8 billion, more than double what they were just seven years
ago.
• PERS rates for the miscellaneous plan have increased slightly for Fiscal Year 2007-08 from 19.810% to
20.478%, and have increased from 27.572% to 28.462% for the safety plan.
• Annual increases in the costs of health insurance.
• The Encina power plant continues to be reassessed downward annually due to a reduction in electricity
generated, affecting tax increment revenues in the South Coastal Carlsbad Redevelopment Area and the
franchise fees received by the City.
• The Consumer Price Index (CPI) for the western region of the United States for urban households increased by
3.0% during the twelve months ended November 30, 2006.
• The total number of housing units in Carlsbad grew by 3.9% in Calendar Year 2006, impacting budgeted
expenditures for Fiscal Year 2007-08.
• Median home prices in Carlsbad have decreased by 3.5% from April 2006 ($777,000) to April 2007
($750,000).
• Due to the results of the subprime mortgage markets on mortgage defaults and foreclosures, forecasted
revenues for development related activities have been reduced.
• The expansion of the La Costa Resort and the addition of two new hotels will impact future TOT revenues.
All of these factors were considered when preparing the City of Carlsbad's General Fund budget for Fiscal Year
2007-08. Budgeted expenditures are expected to increase 9.5% to $116.5 million. The increase is mainly due to an
increase in the number of positions and other personnel costs. Personnel costs make up approximately 64% of the
General Fund budget so any changes in these costs can have a significant effect on the total budget. In addition, the
annual transfer to the Infrastructure Replacement Fund is being increased by $700,000, to a total of $7.9 million.
The Habitat Management Program is a newly funded program in 2007-08, to address the maintenance and
management of the City's various open space areas. The opening of Pine Avenue Park has impacted Fiscal Year
2007-08 budgets for both Community Services and Public Works. Adding to the adopted budget of $116.5 for the
General Fund, just under $13.9 million in unspent Fiscal Year 2006-07 budgeted expenditures will be carried over to
Fiscal Year 2007-08, as well as $6.7 million in open encumbrances as of June 30, 2007.
As the City is approaching the build out of its remaining vacant land, the City is now ushering in a new era focusing
on maintaining the City's infrastructure rather than building it. In an effort to address this issue, the City has
developed an Infrastructure Replacement Fund (IRF). With this fund, the City sets aside money on an annual basis
for major maintenance and replacement of its infrastructure. In the Fiscal Year 2007-08 Operating Budget, the City
has budgeted a $7.9 million transfer from the General Fund to the IRF, an increase of $700,000 from the prior fiscal
year, to meet future needs.
During the current fiscal year, the unreserved, undesignated fund balance in the General Fund increased to $52.2
million due to the City of Carlsbad's fiscal discipline and a diverse economy.
With the exception of the Public Facilities Construction Fund (PFF), there appears to be sufficient revenues
projected to build the projects listed in the Fiscal Year 2007-08 Capital Improvement Program (CIP). A large
increase in the cost of construction materials has occurred over the past three years, pushing up the cost of all of the
City's projects. This cost escalation has contributed to the projected shortfall of $12.7 million at buildout in the PFF
Fund. The PFF Fund shortfall at buildout in the Fiscal Year 2007-08 CIP is down from the $1.7.0 million projected
at buildout in the Fiscal Year 2006-07 CIP. This was achieved by reevaluating the proposed projects to be funded
32
through the PFF Fund, and finding alternative funding sources for some of these projects. The PFF Fund is not
anticipated to be in a deficit position until Fiscal Year 2011-12, and City staff will continue to monitor the projected
deficit in this fund, and bring additional solutions forward at the appropriate time. This will allow projects to be
constructed from this funding source while the City evaluates future options.
The City's business-type activities reflect the following:
• Water rates will be increasing on average by 9.0% in Fiscal Year 2007-08.
• Sewer rates will be increasing on average by 10.6% in Fiscal Year 2007-08.
• No projected significant changes in other revenue sources.
• The Recycled Water Operations Fund budget reflects a 39% increase, or $ 1,039,000, to fund costs associated
with the new treatment plant: operations, depreciation expense, and debt service on a loan from the State.
• New state and federal mandated storm and wastewater programs are reflected in the Fiscal Year 2007-08
budgeted expenses for the Solid Waste and Wastewater Funds.
• Other changes in the Enterprise funds are the result of inflation, depreciation increases due to expanding
infrastructure, and increased costs for maintenance and repair of the City's infrastructure.
• The opening of the City's new municipal golf course, The Crossings at Carlsbad.
Contacting the City's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general
overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have
any questions about this report or need additional information, contact the Finance Department,
1635 Faraday Avenue, Carlsbad, CA 92008, (760) 602-2430, or visit us online at www.carlsbadca.gov.
33
CITY OF CARLSBAD
Statement of Net Assets
June 30,2007
Primary Government
ASSETS
Cash and investments
Receivables:
Taxes
Accounts, net
Other
Due from other governments
Inventories
Prepaid items
Loan and reimbursement receivables
Internal balances
Subtotal
Capital assets:
Land
Construction in progress
Buildings and other structures
Improvements other than buildings
Machinery and equipment
Infrastructure
Wastewater treatment facility
Less accumulated depreciation
Total capital assets
Total assets •
Governmental
Activities
$ 405,761,515
6,766,669
287,861
604,145
196,438
160,601
344,389
13,046,133
47,664,837
474,832,588
128,132,931
' 111,317,618
70,232,559
30,192,088
26,463,958
446,960,843
-
(154,883,982)
658,416,015
$ 1,133,248,603
Business-type
Activities
$ 145,883,744 :
27,576
5,753,445
24,800
3,957,828
574,463
-
437,510
(47,664,837)
108,994,529
8,663,600
81,368,923
20,213,224
5,556,571
2,019,241
216,253,793
44,929,167
(73,662,803)
305,341,716
$ 414,336,245 :
Total
$ 551,645,259
6,794,245
6,041,306
628,945
4,154,266
735,064
344,389
13,483,643
-
583,827,117
136,796,531
192,686,541
90,445,783
35,748,659
28,483,199
663,214,636
44,929,167
(228,546,785)
963,757,731
$ 1,547,584,848
The notes to the financial statements are an integral part of this statement.
34
CITY OF CARLSBAD
Statement of Net Assets (Continued)
June 30,2007
LIABILITIES
Accrued liabilities
Accrued interest payable
Due to other governments
Estimated claims payable
Deposits payable
Deferred revenue
Noncurrent liabilities:
Due within one year
Due in more than one year, net of deferred
charges ($789,409) and unamortized
discounts ($291,635)
Total liabilities
Governmental
Activities
$ 10,741,586
232,215
4,544,203
3,691,335
220,207
609,308
1,140,000
11,940,000
33,118,854
Primary Government
Business-type
Activities
$ 15,030,781 :
683,646
6,462,505
-
556,646
787,063
2,170,065
51,792,051
77,482,757
Total
$ 25,772,367
915,861
11,006,708
3,691,335
776,853
1,396,371
3,310,065
63,732,051
110,601,611
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Capital assets
Affordable, low and moderate income housing
Habitat and agricultural mitigation management
Other purposes
Unrestricted
Total net assets
645,995,515
178,559,169
30,355,963
7,669,890
4,848,987
232,700,225
$ 1,100,129,749
253,644,743
47,164,402
-
-
-
36,044,343
$ 336,853,488
899,640,258
225,723,571
30,355,963
7,669,890
4,848,987
268,744,568
$ 1,436,983,237
The notes to the financial statements are an integral part of this statement.
35
CITY OF CARLSBAD
Statement of Activities
For the Year Ended June 30,2007
Functions/Programs
Primary government:
Governmental activities:
General government
Public safety
Community development
Community services
Public works
Interest and fiscal charges on long-term debt
Total governmental activities
Business-type activities:
Carlsbad Municipal Water District
Golf course
Wastewater
Solid waste
Total business-type activities
Total primary government
Expenses
$ 12,272,953
38,326,632
13,859,714
17,913,230
37,277,807
688,352
120,338,688
40,383,346
199,846
9,590,391
1,901,244
52,074,827
$ 172,413,515
Charges for
Services
$ 1,193,997
4,169,570
4,158,250
2,638,930
5,083,289
-
17,244,036
22,186,138
-
7,506,653
1,966,477
31,659,268
$ 48,903,304
Program Revenues
Operating
Grants and
Contributions
$ 7,147,802
521,787
6,563,577
860,725
2,503,475
-
17,597,366
2,268,147
-
-
28,244
2,296,391
$ 19,893,757
Capital
Grants and
Contributions
$ 92,268
152,502
478,604
594,514
47,935,718
-
49,253,606
17,902,453
-
7,150,697
-
25,053,150
$ 74,306,756
General revenues:
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Business license taxes
Real property transfer taxes
Vehicle license taxes (VLF)
Income from property and investments
Other general revenues
Transfers
Total general revenues and transfers
Change in net assets
Net assets at beginning of year (as restated)
Net assets at end of year
pm
m
The notes to the financial statements are an integral part of this statement.
36
Net Revenue (Expense) and
Changes in Net Assets
Primary Government
Governmental
Activities
$ (3,838,886)
(33,482,773)
(2,659,283)
(13,819,061)
18,244,675
(688,352)
(36,243,680)
-
-
-
-
(36,243,680)
49,283,589
27,444,779
12,929,007
5,346,107
3,055,710
1,261,848
608,256
21,455,134
700,271
400,000
122,484,701
86,241,021
1,013,888,728
Business-type
Activities
$
-
-
-
-
-
-
1,973,392
(199,846)
5,066,959
93,477
6,933,982
6,933,982
2,504,080
-
-
-
- .
-
7,620,346
34,198
(400,000)
9,758,624
16,692,606
320,160,882
Total
$ (3,838,886)
(33,482,773)
(2,659,283)
(13,819,061)
18,244,675
(688,352)
(36,243,680)
1,973,392
(199,846)
5,066,959
93,477
6,933,982
(29,309,698)
51,787,669
27,444,779
12,929,007
5,346,107
3,055,710
1,261,848
608,256
29,075,480
734,469
-
132,243,325
102,933,627
1,334,049,610
$ 1,100,129,749 $ 336,853,488 $ 1,436,983,237
37
CITY OF CARLSBAD
Balance Sheet
Governmental Funds
June 30, 2007
ASSETS
Cash and investments
Receivables:
Taxes
Other
Accounts, net
Due from other governments
Inventories
Prepaid items
Restricted cash and investments
Loans receivable
Advances to other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accrued liabilities
Deposits payable
Due to other governments
Advances from other funds
Deferred revenue
Total liabilities
General
Fund
$ 71,282,954
6,709,275
491,147
18,845
14,907
22,306
-
-
107,377
63,331,246
$ 141,978,057
$ 4,916,475
97,664
1,497
-
14,373,590
19,389,226
Redevelopment Assessment
Debt and Other
Service Funds Districts
$ 1,906,596 $ 18,894,822
44,797
11,816
753
-
-
-
-
-
-
$ 1,952,146 $ 18,906,638
$ - $ 861,197
-
-
14,857,658
-
14,857,658 861,197
Community
Facilities
District No. 1
$ 53,917,264
1,398
-
-
-
-
-
.
-
-
$ 53,918,662
$ 226,831
-
-
-
-
226,831
Fund balances:
Reserved
Unreserved:
Designated, reported in:
General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Undesignated, reported in:
General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Total fund balances
Total liabilities and fund balances
56,505,428
13,891,802
37,302
18,008,139
52,191,601
(12,905,512)
122,588,831 (12,905,512) 18,045,441
m
M
m
3,351,913
50,339,918
53,691,831
$ 141,978,057 $ 1,952,146 $ 18.906.638 $ 53.918.662
The notes to the financial statements are an integral part of this statement.
38
m
m
General Public Rancho Santa Other
Capital Facilities FeRoad Governmental
Construction Construction Project Funds
$ 46,017,587 $ 46,563,603 $ 17,620,843 $ 118,807,535
11,199
101,182
191,895 - - 36,853
181,531
.
344,389
659,500
12,938,756
8,700,021 4,550,000 - 3,643,344
$ 54,909,503 $ 51,113,603 $ 17,620,843 $ 136,724,289
Total
Governmental
Funds
$ 375,011,204
6,766,669
604,145
248,346
196,438
22,306
344,389
659,500
13,046,133
80,224,611
$ 477,123,741
$ 271,744 $ 67,181 $ 76,805 •$ 755,534
57,472 - 65,071
4,542,706
7,100,000 - 10,602,116
136,841 - - 39,101
408,585 7,224,653 4,619,511 11,461,822
10,215,423 5,195,423 733,173 24,818,864
9,166,025
51,412
23,119,705 38,693,527 12,268,159 41,134,823
-
23,318,869
431,709
21,165,790 - - 26,340,765
54,500,918 43,888,950 13,001,332 125,262,467
$ 54,909,503 $ 51,113,603 $ 17,620,843 $ 136,724,289
$ 7,175,767
220,207
4,544,203
32,559,774
14,549,532
59,049,483
100,857,526
13,891,802
9,166,025
51,412
183,564,271
52,191,601
23,318,869
(12,473,803)
47,506,555
418,074,258
$ 477,123,741
39
CITY OF CARLSBAD
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30,2007
Total fund balances - governmental funds. $ 418,074,258
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are"not reported in the funds.
Governmental funds 651,012,047
Internal service funds 7,403.968
Total capital assets 658,416,015
Internal service funds are used by management to charge the costs of fleet
management, self insured benefits, information technologies, records management,
risk management and workers' compensation to individual funds. The assets
and liabilities of the internal service funds are included in governmental
activities in the statement of net assets.
Total internal service fund net assets 30,415,435
Internal service fund net assets included as part of total capital assets (7,403,968)
Internal service fund net assets less capital assets 23,011,467
Accrued interest is not due and payable in the current period and, therefore,
is not reported in the funds. (232,215)
Interest receivable on advances to other funds is not a current financial
resource and, therefore, is not recognized as revenue in the funds until received. 13,612,192
A portion of the taxes receivable is not available to pay for current-period
expenditures and, therefore, is deferred in the funds. 288,932
A portion of accounts receivables are not available to pay for current-period
expenditures and, therefore, is deferred in the funds. 39,100
Long-term liabilities, including bonds payable, are not due and payable
in the current period and, therefore, are not reported in the funds.
Governmental funds (13,080,000)
Net assets of governmental activities. $ 1,100.129,749
The notes to the financial statements are an integral part of this statement.
40
41
CITY OF CARLSBAD
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30,2007
Revenues:
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Income from property and investments
Contributions from property owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Less: interdepartmental charges
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):
Proceeds from the sale of property
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficits) at beginning of year
Fund balances (deficits) at end of year
General
Fund
$ 94,132,566
9,312,901
2,093,806
7,593,091
1,262,006
5,884,805
-
-
766,964
121,046,139
17,853,903
(2,122,938)
39,580,593
6,906,995
16,455,238
20,274,163
-
704
30
98,948,688
22,097,451
1,364,511
13,960
(7,511,821)
(6,133,350)
15,964,101
106,624,730
$ 122,588,831
Redevelopment Assessment
Debt and Other
Service Funds Districts
$ 2,664,424 $
-
_
-
-
116,949 1,248,281
64,257
-
-
2,781,373 1,312,538
75,000
-
-
24,093
-
-
9,660,737
420,000
1,249,346
1,693,439 9,735,737
1,087,934 (8,423,199)
-
(1,420,000)
(1,420,000)
(332,066) (8,423,199)
(12,573,446) 26,468,640
$ (12,905,512) $ 18,045,441
Community
Facilities District
No. 1
$ 1,931,102
-
-
-
-
2,768,208
512,235
-
-
5,211,545
31,707
-
-
-
-
-
1,029,548
-
-
1,061,255
4,150,290
-
-
-
_
4,150,290
49,541,541
$ 53,691,831
The notes to the financial statements are an integral part of this statement.
42
General Public Rancho Santa
Capital Facilities Fe Road
Construction Construction Project
$ - $ - $
1,730,707 29,406 2,992,991
.
.
.
2,536,759 2,844,428 900,195
4,254,017 1,034,340
.
19
4,267,485 7,127,851 4,927,526
-
.
.
.
-
2,745,636 1,422,530 2,707,012
.
.
2,745,636 1,422,530 2,707,012
1,521,849 5,705,321 2,220,514
.
(28,133)
(28,133)
1,521,849 5,705,321 2,192,381
52,979,069 38,183,629 10,808,951
$54,500,918 $43,888,950 $13,001,332
Other .
Governmental
Funds
$ 2,467,995
11,031,147
-
3,343,481
124,684
5,970,479
4,446,164
172,668
183,531
27,740,149
52,321
(28,000)
251,281
7,067,196
211,447
2,206,835
13,199,715
670,000
83,994
23,714,789
4,025,360
9,709,264
(800,091)
8,909,173
12,934,533
1 12,327,934
$125,262,467
Total
Governmental
Funds
$ 101,196,087
25,097,152
2,093,806
10,936,572
1,386,690
22,270,104
10,311,013
172,668
950,514
174,414,606
18,012,931
(2,150,938)
39,831,874
13,998,284
16,666,685
22,480,998
30,765,178
1,090,704
1,333,370
142,029,086
32,385,520
1,364,511
9,723,224
(9,760,045)
1,327,690
33,713,210
384,361,048
$ 418,074,258
43
CITY OF CARLSBAD
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30,2007
Net change in fund balances - total governmental funds.$ 33,713,210
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.
Purchase of capital assets
Depreciation expense
21,526,957
(11,945,841)
Governmental funds do not reflect the donation of capital assets as revenues.30,430,119
Governmental funds report the entire proceeds from the sale of capital assets as revenue.
However, in the statement of activities, the net gain or loss from the sale of capital
assets is reported.(697,181)
The repayment of the principal of long-term debt consumes the current financial
resources of governmental funds but has no effect on net assets.1,090,703
Some expenses reported in the statement of activities do not require the use
of current financial resources, and therefore are not reported as expenditures
in governmental funds. .472,161
Unpaid interest income on advances to other funds is not a current financial
resource, and therefore is not recognized as revenue in the funds.1,044,624
A portion of sales and use taxes previously recoginized in the Statement of Activities, but
had been deferred in the funds.
The net revenue of activities of internal service funds is reported
with governmental activities.
Other
Change in net assets of governmental activities.
449,924
10,193,959
(37,614)
$ 86,241,021
The notes to the financial statements are an integral part of this statement.
44
45
CITY OF CARLSBAD
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended June 30, 2007
Revenues:
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Income from property and investments
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Less: interdepartmental charges
Public safety
Community development
Community services
Public works
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Proceeds from the sale of property
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balance at beginning of year
Fund balance at end of year
Budgeted
Original
$ 94,498,000
1,670,500
1,736,000
6,851,621
978,700
3,291,700
968,250
109,994,771
19,670,229
(2,180,000)
41,791,571
9,832,295
21,699,019
24,953,435
704
30
115,767,283
(5,772,512)
-
-
(7,727,821)
(7,727,821)
(13,500,333)
106,624,730
$ 93,124,397
Amounts
Final
$ 95,265,000
1,843,000
1,930,000
7,766,000
1,050,000
3,710,000
750,000
112,314,000
23,368,835
(2,180,000)
42,358,729
10,257,046
21,533,221
25,745,273
704
30
121,083,838
(8,769,838)
(46,295)
149,960
(7,727,821)
(7,624,156)
(16,393,994)
106,624,730
$ 90,230,736
Actual Amounts
(Budgetary Basis)
$ 94,132,566
9,312,901
2,093,806
7,593,091
1,262,006
5,272,906
766,964
120,434,240
18,854,043
(2,122,938)
40,056,325
9,363,836
17,534,596
21,918,782
704
30
105,605,378
14,828,862
(46,295)
149,960
(7,727,821)
(7,624,156)
7,204,706
106,624,730
$ 113,829,436
Variance With
Final Budget -
Over
(Under)
$ (1,132,434)
7,469,901
163,806
(172,909)
212,006
1,562,906
16,964
8,120,240
(4,514,792)
57,062
(2,302,404)
(893,210)
(3,998,625)
(3,826,491)
.
-
(15,478,460)
23,598,700
-
-
-
.
$ 23,598,700
The notes to the financial statements are an integral part of this statement.
46
CITY OF CARLSBAD
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund (Continued)
For the Year Ended June 30, 2007
BUDGET-TO-GAAP RECONCILIATION
Actual Amounts
(Budgetary Basis)
Revenues
Actual amounts (budgetary basis) "available for appropriation" from
the budgetary comparison schedule (previous page).
The recording of unrealized gains and losses on the City's investments
are shown for financial reporting purposes (pursuant to GASB 31),
but are not shown for budgetary purposes.
Expenditures
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule (previous page).
Differences - budget to GAAP:
Encumbrances are shown in the year encumbered for budgetary purposes,
but in the year paid for financial reporting purposes.
Other financing sources (uses)
Actual amounts (budgetary basis) "total other financing sources (uses)"
from the budgetary comparison schedule (previous page).
Differences - budget to GAAP:
The sale proceeds of a City-owned parcel of land were not estimated
in the City's operating budget.
Some advances are budgeted for as transfers in for budgetary purposes,
but reflected as advances for financial reporting purposes.
Some advances are budgeted for as transfers out for budgetary purposes,
but reflected as advances for financial reporting purposes.
$ 120,434,240
611,899
$ 121,046,139
$ 105,605,378
(6,656,690)
$ 98,948,688
$ (7,624,156)
1,410,806
(136,000)
216,000
$ (6,133,350)
The notes to the financial statements are an integral part of this statement.
47
CITY OF CARLSBAD
Statement of Net Assets
Proprietary Funds
June 30,2007
Business-type Activities -
ASSETS
Carlsbad
Municipal
Water District
Golf
Course Wastewater
Current assets:
Cash and investments
Receivables:
Taxes
Accounts, net
Due from other governments
Inventories
Total current assets
Noncurrent assets:
Cash and investments - restricted for debt service
Accrued interest - restricted for debt service
Loans and reimbursement receivables
Subtotal
Capital assets:
Land
Construction in progress
Buildings and other structures
Improvements other than buildings
Machinery and equipment
Infrastructure
Wastewater treatment facility
Less accumulated depreciation
Total capital assets (net of accumulated
depreciation)
Total noncurrent assets
Total assets
$ 68,360,837 $ 6,145,923 $ 60,966,109
27,576
4,162,253
1,635,156
570,560
74,756,382
-
-
-
1,909,565
11,800,865
20,213,224
2,185,604
811,313
147,877,148
-
(30,403,476)
154,394,243
154,394,243
$ 229,150,625
-
1,696
-
-
6,147,619
2,100,846
3,500
-
2,104,346
5,075,228
60,523,167
-
-
721,131
-
-
-
66,319,526
68,423,872
$ 74,571,491
-
943,206
2,322,672
3,903
64,235,890
953,706
21,300
437,510
1,412,516
1,678,807
9,044,891
-
3,370,967
486,797
68,376,645
44,929,167
(43,259,327)
84,627,947
86,040,463
$ 150,276,353
The notes to the financial statements are an integral part of this statement.
48
Enterprise Funds
Solid
Waste Totals
Governmental
Activities -
Internal
Service
Funds
$ 7,356,323 $ 142,829,192 $ 30,090,811
27,576
646,290 5,753,445
3,957,828
574,463
8,002,613 153,142,504
3,054,552
24,800
437,510
3,516,862
8,663,600
81,368,923
20,213,224
5,556,571
2,019,241
216,253,793
44,929,167
(73,662,803)
305,341,716
308,858,578
$ 8,002,613 $ 462,001,082
-
39,515
-
138,295
30,268,621
-
-
-
.
-
-
-
18,131,808
-
-
(10,727,840)
7,403,968
7,403,968
$ 37,672,589
(Continued)
49
CITY OF CARLSBAD
Statement of Net Assets
Proprietary Funds (Continued)
June 30,2007
Business-type Activities -
LIABILITIES
Current liabilities:
Accrued liabilities
Accrued interest payable
Due to other governments
Estimated claims payable
Current portion of long-term debt
Deposits payable
Total current liabilities
Carlsbad
Municipal
Water District
$ 12,209,078
277,836
3,678,661
-
1,399,163
163,972
17,728,710
Golf
Course
$ 1,226,756
275,683
-
-
130,902
4,749
1,638,090
Wastewater
$ 1,102,695
130,127
2,783,844
-
640,000
387,925
5,044,591
Noncurrent liabilities:
Advance from other funds
Deferred revenue
Capital leases payable
Loans payable
Revenue bonds payable, net of deferred charges of
$412,460 and unamortized discounts of $291,635
Installment purchase agreement, net of deferred
charges of $376,949
Total noncurrent liabilities
Total liabilities
27,696,616
46,576,618
568,209
18,419,175
787,063
5,108,051
27,696,616
45,425,326
65,564,002
67,202,092
5,895,114
10,939,705
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Capital assets
Unrestricted
Total net assets
125,298,464
18,285,570
40,141,265
$ 183,725,299
48,889,626
-
(41,520,227)
$ 7,369,399
79,456,653
28,878,832
31,001,163
$ 139,336,648
The notes to the financial statements are an integral part of this statement.
50
Enterprise Funds
Governmental
Activities -
Solid
Waste
$ 492,252
-
-
-
-
-
492,252
1,088,219
-
-
-
-
_
1,088,219
1,580,471
Total
Proprietary
Funds
$ 15,030,781
683,646
6,462,505
-
2,170,065
556,646
24,903,643
47,664,837
787,063
568,209
27,696,616
18,419,175
5,108,051
100,243,951
125,147,594
Internal
Service
Funds
$ 3,565,819
-
-
3,691,335
-
-
7,257,154
-
-
-
-
-
-
7,257,154
-
_
6,422,142
$ 6,422,142
253,644,743
47,164,402
36,044,343
$ 336,853,488
7,403,968
-
23,011,467
$ 30,415,435
51
CITY OF CARLSBAD
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the Year Ended June 30,2007
Income (loss) before transfers and capital
contributions
Transfers in
Transfers out
Capital contributions:
Capital restricted fees
Developer constructed assets
Other
Change in net assets
Total net assets at beginning of year (as restated)
Total net assets at end of year
Business-type Activities -
Operating revenues:
Water sales
Sewer service charges
Other charges for services
Contributions from other government agencies
Miscellaneous
Total operating revenues
Operating expenses:
Encina plant operations
Purchased water
Depreciation
Fuel and supplies
Claims expense
Small equipment purchases
General and administrative
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Income from property and investments
Interest expense and fees
Intergovernmental
Gain on sale of property
Property taxes
Total nonoperating revenues
Carlsbad
Municipal Golf
Water District Course
$ 21,534,226 $ - 5
_
651,912
968,444
1,299,703
24,454,285
145,979
13,472,842
2,422,333
-
-
•
24,279,047 9,226
40,320,201 9,226
(15,865,916) (9,226)
3,425,320 399,234
(63,145) (190,620)
-
2,361
2,504,080
5,868,616 208,614
Wastewater
I
7,397,978
108,675
397,681
17,972
7,922,306
2,579,155
-
2,421,928
-
-
-
4,337,370
9,338,453
(1,416,147)
3,403,625
(243,907)
-
(8,031)
-
3,151,687
(9,997,300)
(400,000)
2,775,652
13,003,903
2,122,898
7,505,153
176,220,146
199,388
199,388
7,170,011
1,735,540
1,361,147
5,391,869
8,488,556
130,848,092
$ 183,725,299 $ 7,369,399 $ 139,336.648
The notes to the financial statements are an integral part of this statement.
52
Enterprise Funds
Solid Waste
$
-
1,966,477
28,244
13,865
2,008,586
-
-
-
-
-
1,901,244
1,901,244
107,342
392,167
-
-
-
-
392,167
499,509
-
-
_
-
-
499,509
5,922,633
$ 6,422,142
Totals
$ 21,534,226
7,397,978
2,727,064
1,394,369
1,331,540
34,385,177
2,725,134
13,472,842
4,844,261
-
-
-
30,526,887
51,569,124
(17,183,947)
7,620,346
(497,672)
•
(5,670)
2,504,080
9,621,084
(7,562,863)
-
(400,000)
4,136,799
18,395,772
2,122,898
16,692,606
320,160,882
$ 336,853,488
Governmental
Activities -
Internal
Service Funds
$
-
20,907,968
331,012
21,238,980
-
1,388,520
1,052,850
3,254,867
534,035
6,545,026
12,775,298
8,463,682
987,139
-
43,552
(31,344)
-
999,347
9,463,029
436,821
-
_
-
294,109
10,193,959
20,221,476
$ 30,415,435
53
CITY OF CARLSBAD
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30,2007
Business-type Activities -
Cash flows from operating activities:
Receipts from customers and users
Payments to suppliers
Payments to employees
Internal activity - payments to other funds
Claims paid
Other receipts (payments)
Increase (decrease) in deposits payable
Net cash provided by operating activities
Cash flows from noncapital financing activities:
Operating subsidies and transfers to other funds
Cash flows from capital and related financing activities:
Proceeds from capital debt
Capital contributions
Purchases of capital assets
Principal paid on capital debt
Interest and other fees paid
Property taxes received
Net cash (used in) 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
Carlsbad
Municipal
Water District
$ 20,498,747
(7,151,583)
(5,897,787)
(2,303,693)
-
(9,047,853)
7,593
(3,894,576)
(400,000)
19,040,965
4,012,777
(8,812,883)
(537,565)
(268,821)
2,503,990
15,938,463
3,425,320
15,069,207
53,291,630
$ 68,360,837
Golf
Course
$
(9,226)
-
-
-
-
-
(9,226)
9,682,317
18,836,839
-
(26,488,196)
(22,020)
(2,389,293)
-
(10,062,670)
395,621
6,042
8,240,727
$ 8,246,769
Wastewater
$ 7,475,240
(4,735,741)
(1,204,869)
(1,039,221)
-
(1,201,028)
-
(705,619)
-
-
1,347,536
(3,737,312)
(605,000)
(352,821)
-
(3,347,597)
3,403,625
(649,591)
61,629,825
$ 60,980,234
The notes to the financial statements are an integral part of this statement.
54
Enterprise Funds
Solid Waste
$ 2,014,631
(854,952)
(813,749)
(292,416)
-
42,109
-
95,623
-
-
-
-
-
392,167
Totals
$ 29,988,618
(12,751,502)
(7,916,405)
(3,635,330)
-
(10,206,772)
7,593
(4,513,798)
9,282,317
37,877,804
5,360,313
(39,038,391)
(1,164,585)
(3,010,935)
2,503,990
2,528,196
7,616,733
Governmental
Activities -
Internal
Service Funds
$ 20,871,299
(4,850,911)
(2,951,937)
(747,950)
(2,935,523)
331,012
-
9,715,990
436,821
43,552
(2,556,134)
-
-
-
(2,512,582)
987,139
487,790 14,913,448 8,627,368
6,868.533 130.030,715 21,463,443
$ 7.356,323 $ 144,944,163 $ 30,090,811
(Continued)
55
CITY OF CARLSBAD
Statement of Cash Flows
Proprietary Funds (Continued)
For the Year Ended June 30,2007
Business-type Activities -
Carlsbad
Municipal
Water District
Golf
Course Wastewater
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization
Change in assets and liabilities:
(Increase) decrease in receivables
(Increase) in inventories
(Decrease) increase in accrued liabilities
(Decrease) increase in accrued interest payable
Increase in due to other governments
Increase in estimated claims payable
Increase in deposits payable
Net cash provided by operating activities
Noncash capital financing activities:
Capital assets contributed by other sources
Reconciliation of cash and cash equivalents to amounts
reported on the balance sheet:
Cash and investments
Restricted assets:
Cash and investments
Less investments not meeting the definition of cash
equivalents:
Investment contracts
Cash and cash equivalents at end of year
$ (15,865,916) $
2,422,333
(9,226) $ (1,416,147)
2,421,928
(1,687,391)
(23,303)
11,012,732
94,918
144,458
7,593
$ (3,894,576) $
(31,413)
930
(64,235)
-
(1,631,679)
14,997
(9,226) $ (705,619)
$ 13,003,903 $$ 5,391,869
$ 68,360,837 $ 6,145,923
2,100,846
$ 60,966,109
953,706
(939,581)
$. 68,360,837 8.246,769 $ 60,980,234
The notes to the financial statements are an integral part of this statement.
56
Enterprise Funds Governmental
Activities -
Internal
Solid Waste Totals Service Funds
$ 107,342 $ (17,183,947) $ 8,463,682
4,844,261 1,388,520
48,154
-
(59,873)
-
-
-
$ 95,623 $
(1,670,650)
(22,373)
10,888,624
94,918
(1,487,221)
-
22,590
(4,513,798) $
(36,919)
57,579
279,628
-
-
(436,500)
-
9,715,990
$ 18,395,772 $ 294,109
$ 7,356,323 $ 142,829,192 $ 30,090,811
3,054,552
- (939,581) -_
$ 7,356,323 $ 144.944,163 $ 30,090,811
57
CITY OF CARLSBAD
Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2007
ASSETS
Current assets:
Cash and investments
Receiveables:
Taxes
Other
Prepaid items
Total current assets
$ 24,072,496
45,035
78,031
544,060
24,739,622
Restricted assets:
Cash and investments
Total assets
LIABILITIES
6,716,274
31.455.896
Accrued liabilities
Deposits held for others
Total liabilities
629,395
30,826,501
31,455.896
The notes to the financial statements are an integral part of this statement.
58
CITY OF CARLSBAD
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies
The City of Carlsbad, California, (City) was incorporated on July 16, 1952. The City 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 the City and its component units conform to accounting principles generally accepted in the
United States of America as applicable to governmental units. The following is a summary of the more significant
policies:
Description and scope of the reporting entity
As required by accounting principles generally accepted in the United States of America, these financial statements
present the financial position of the City and its component units, entities for which the City is considered to be financially
accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority
of that organization's governing body and the City is able to impose its will on that organization or there is a potential for
that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also
considered to be financially accountable for an organization if that organization is fiscally dependent upon the City (i.e., it
is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In
certain cases, other organizations are included as component units if the nature and significance of their relationship with
the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.
Based upon the above criteria, the component units of the City are the Housing Authority of the City of Carlsbad, the City
of Carlsbad Public Improvement Corporation, the Carlsbad Redevelopment Agency, the Carlsbad Public Financing
Authority 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 is 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.
Government-wide and Fund Financial Statements
The Government-wide Financial Statements (i.e., the Statement of Net Assets and the Statement of Activities) report
information on all of the nonfiduciary activities of the City and its blended component units. For the most part, the effect
of interfund activity has been removed from these statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on user fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset
by program revenues. Direct expenses are those that are clearly identifiable to a specific function or segment. Program
revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not properly classified as
program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the
latter are excluded from the Government-wide Financial Statements. Major individual governmental funds and major
individual enterprise funds are reported in separate columns in the Fund Financial Statements.
59
CITY OF CARLSBAD
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Measurement focus, basis of accounting, and financial statement presentation
The Government-wide Financial Statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the Proprietary Fund and Fiduciary Fund Financial Statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. In applying
the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the individual
programs are used as guidance. Property taxes are recognized as revenues in the year for which they are levied.
Governmental Fund Financial Statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting, as long as the expenditure reflects a near-term cash outflow. Principal and interest on 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.
Revenues that are accrued generally include real property taxes, sales tax, transient occupancy taxes, franchise taxes,
vehicle license fees, highway users tax, interest, and some state and federal grants.
Real property taxes are levied on October 15 against property owners of record on January 1 of that year. 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.
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 accrual basis of accounting.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government,
except those required to be accounted for in another fund.
The Redevelopment Debt Service Funds are used to account for the accumulation of resources for, and payment of,
principal and interest on the Carlsbad Redevelopment Agency's bonds and other debt, used to finance improvements for
the redevelopment areas of the City.
The Assessment and Other Districts capital project funds are used to account for capital projects financed by the
issuance of assessment and community facility district bonds.
The Community Facilities District No. 1 capital project fund is used to account for civic facilities, parks, and road
segments financed by Community Facilities District No. 1 "special tax revenues" (Mello Roos).
The General Capital Construction capital project fund is used to account for transfers from the General Fund and
expenditures for various capital projects not financed through another capital project fund.
The Public Facilities Construction capital project fund is used to account for the receipt of fees charged to developers,
and expenditures for specific public facilities such as parks and fire stations necessitated by growth.
The Rancho Santa Fe Road Project capital project fund is used to account for the amounts paid by developers and costs
for the construction and improvements related to Rancho Santa Fe Road.
60
CITY OF CARLSBAD
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Measurement focus, basis of accounting, and financial statement presentation (continued)
The City reports the following major enterprise funds:
The Carlsbad Municipal Water District enterprise funds are used to account for the operation, maintenance, and capital
facility financing of the City's water system.
The Golf Course enterprise fund is used to account for revenues and expenses for the construction activities of the City's
new municipal golf course.
The Wastewater enterprise funds are used to account for the operation, maintenance, and capital facility financing of the
City's wastewater system.
The Solid Waste enterprise funds are used to account for the revenues and expenses of the City's solid waste source-
reduction, recycling and storm water programs.
Additionally, the City reports the following fund types:
Internal Service funds account for fleet management, self insured benefits, information technology, risk management and
workers' compensation services provided to other departments or agencies of the City.
The Agency funds account for assets held by the City for other funds, governments or individuals. These funds include
contractors' deposits for future development, miscellaneous deposits, as well as debt service transactions on assessment
district bonds for which the City is not obligated.
Financial Accounting Standards Board (FASB) statements and interpretations issued prior to December 1, 1989, generally
are followed in both the Government-wide and Proprietary Fund Financial Statements to the extent that those standards do
not conflict with or contradict guidance of the Governmental Accounting Standards Board (GASB). Governments also
have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds,
subject to this same limitation. The City has elected to follow the standards set by the GASB as opposed to subsequently
issued private-sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the Government-wide Financial Statements. An
exception to this general rule are the charges between the Carlsbad Municipal Water District and various other functions of
the City. Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund's
principal ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers
for sales and services. The City also recognizes new account charges, late fees and contributions from other agencies as
operating revenues. Operating expenses for enterprise and internal service funds include the cost of sales and services,
general and administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first,
then unrestricted resources as they are needed.
61
CITY OF CARLSBAD
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
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.
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 on a monthly basis, 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.
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.
Compensated absences
Compensated absences are comprised of vacation payable for all City employees and vested sick benefits for certain
former District employees. 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
liability in the Self Insured Benefits internal service fund. Since the City caps the amount of vacation employees are
allowed to have on the books at any point in time, for compensated absences recorded at June 30, 2007, 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.
Risk management
The City accounts for its general liability, self insured dental program, 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.
Unbilled services
Unbilled water, wastewater and solid waste revenues of the enterprise funds are recognized as earned when the services
are used.
Capital assets
Capital assets, which include land (including right-of-way), buildings, equipment and infrastructure assets (e.g., roads,
bridges, traffic signals, water and wastewater systems, and similar items), are reported in the applicable governmental or
business-type activities columns in the Government-wide Financial Statements. Capital assets are defined by the City as
assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year. Such assets
are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded
at estimated fair market value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of an asset or materially extend an asset's useful
life are not capitalized. Construction in progress costs are transferred to their respective capital asset category upon
completion.
62
CITY OF CARLSBAD
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Depreciation is charged to operations using the straight-line method based on the estimated useful life of an asset. The
estimated useful lives of depreciable assets are as follows:
Years
Buildings and other structures 10-50
Improvements other than buildings 20 - 50
Machinery and equipment 3-20
Infrastructure 10-100
Wastewater treatment facility (including equipment) 5-75
The City has capitalized all general infrastructure assets acquired or constructed in compliance with GASB 34. In addition
the land upon which the streets and roads are constructed (right-of-way) has also been valued and capitalized.
Deferred revenue
The deferred revenue reported in the City's financial statements represents money received during the current or previous
fiscal years that has not been earned by, or is not available to, 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 or becomes available.
Interfund transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year
are referred to as either "due to/from other funds" (short-term interfund loans) or "advances to/from other funds" (long-
term interfund loans). Any residual balances outstanding between the governmental activities and business-type activities
are reported in the Government-wide Financial Statements as "internal balances".
Advances between funds, as reported in the Fund Financial Statements, are offset by a fund balance reserve account in the
applicable governmental fund to indicate that they are not available for appropriation and are not expendable available
financial resources.
Receivables and payables
All trade, service and tax receivables are shown net of an allowance for uncollectibles. The utility billing receivable
allowance is equal to 1% of outstanding billings at June 30, 2007, the ambulance billing receivable allowance is equal to
40% of outstanding billings at June 30, 2007, and the trade and false alarm receivable allowance is equal to the total of all
outstanding receivables that are over 90 days past due plus 30% of all remaining balances. The only exception to these
rules are receivables that were subsequently paid or were known to be collectible at year-end, were not reserved for at June
30, 2007.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies
are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal
budgetary integration in the governmental funds. Unexpended and unencumbered 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.
Encumbrances at year end are a portion of the reserved fund balance and are reappropriated the following year.
Net assets
Net assets represent the differences between assets and liabilities. Net assets invested in capital assets, net of related debt,
consist of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings, used for
the acquisition, construction or improvement of those assets. Net assets invested in capital assets, net of related debt,
excludes unspent debt proceeds. Net assets are reported as restricted when there are limitations imposed on their use either
through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws
or regulations of other governments. The City first applies restricted resources when an expense is incurred for purposes
for which both restricted and unrestricted net assets are available.
63
CITY OF CARLSBAD
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Cash flows
Statements of cash flows are presented for proprietary fund types. Cash and cash equivalents include all unrestricted and
restricted highly liquid investments with original purchase maturities of three months or less. Pooled cash and investments
in the City's Treasury represent monies in a cash management pool and such accounts are similar in nature to demand
deposits.
Long-term obligations
In the Government-wide Financial Statements, and proprietary fund types in the Fund Financial Statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type
activities, or proprietary fund type Statement of Net Assets. Bond premiums, discounts, and issuance costs are deferred
and amortized over the life of the bonds using the effective interest method. Long-term bonds payable are reported net of
the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the
term of the related debt.
In the Fund Financial Statements, governmental fund types recognize bond premiums, discounts, and issuance costs
during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
Fund equity
In the Fund Financial Statements, governmental funds report reservations of fund balance for amounts that are not
available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund
balance represent tentative management plans, and are subject to change.
Pronouncements issued, not yet effective
The GASB has issued several pronouncements that have effective dates that may impact future financial presentations.
Management has not currently determined what, if any, impact implementation of the following statements may have on
the financial statements of the City.
• GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits
Other Than Pensions.
• GASB Statement No. 49, Accounting and Financial Reporting for Polution Remediation Obligations
• GASB Statement No. 50, Pension Disclosures.
Note 2. Budgetary Data
The City follows these procedures in establishing its budgetary data:
» During May or June, the City Manager submits to the City Council a proposed operating and capital budget
for the fiscal year commencing the following July 1. The budget includes estimated revenues and proposed
expenditures on a departmental and/or project basis.
» Public hearings are conducted at City Council meetings to obtain citizens' comments during June.
• Prior to July 1, the budget is enacted legally through passage of an appropriation resolution.
64
CITY OF CARLSBAD
Notes to the Financial Statements
Note 2. Budgetary Data (Continued)
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 that 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. Monthly reports are provided to the City
Council during the year, and any changes to the adopted budget are approved by the City Council as necessary. 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 revenues have been adjusted to exclude unrealized gains and losses
pursuant to GASB 31, and transfers in have been adjusted to reflect any transfer that was approved through the budget
process as a revenue, but recorded as an advance in the financial statements. Actual expenditures have been adjusted to
include encumbrances outstanding, and transfers out have been adjusted to reflect any transfer that was approved through
the budget process as an expenditure but recorded as an advance in the financial statements. Annual budgets are adopted
for the General Fund, special revenue funds except for the Tyler Court Apartments Fund, and debt service funds except for
the Hosp Grove COPs. Accordingly, the revenues and expenditures for these two funds have been excluded from the
budget basis financial statements. Annual operating 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.
Note 3. Deposit and Investment Risk
Cash resources of the individual funds are combined to form a pool of cash and investments. The City maintains a formal
investment policy, which is reviewed by the Investment Committee and adopted annually by the City Council. All
investments held in the Treasurer's Pool are consistent with the City's investment policy objectives of safety of principal,
adequacy of liquidity, and achievement of an average market rate of return. The risk disclosures below apply to the City's
internal investment pool. Portfolio investments are exposed to five types of risk: custodial (investments and cash
deposits); concentration; default; event; and market or interest rate risk.
The City of Carlsbad and its agencies invest a portion of its funds in an external investment pool known as the Local Area
Investment Fund (LAIF). Management and oversight are the responsibility of the California State Treasurer. As of June
30, 2007, the LAIF performance report shows a fair value factor of .999545022. The City of Carlsbad's position in the
LAIF pool is calculated as a percentage of the fair value of the City's shares to the fair value of the pooled shares.
Investments held outside the Treasurer's Pool consist mainly of required reserve funds for various bond issues. They are
held by trustees, and are not available for the City's general expenditures.
65
CITY OF CARLSBAD
Notes to the Financial Statements
Note 3. Deposit and Investment Risk (Continued)
As of June 30, 2007 the City had the following investments in its portfolio:
Treasurer's Pool investments
U.S. agencies:
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Federal National Mortgage Association
Federal Farm Credit Bank
Federal Farm Credit Bank
Subtotal U.S. agencies
Corporate notes:
Medium-term corporate notes
Subtotal corporate notes
LAIF
Cash accounts
Total Treasurer's Pool
Fair Market
Value
158,434,962
180,720,102
108,768,856
10,922,175
1,004,088
459,850,183
55,361,801
55,361,801
36,458,932
4,783,845
556,454,761
%of
Total
28.4%
32.5%
19.5%
2.0%
0.2%
82.6%
9.9%
9.9%
6.6%
0.9%
100.0%
Modified
Duration
1.938
1.568
1.641
2.497
1.926
1.736
2.663
2.663
-
-
1.686
Investments held outside the Treasurer's Pool
Debt Service funds/bond proceeds
Other deposits
Petty cash funds
Total cash and investments
Statement of Net Assets, Primary Government
Cash and investments
Statement of Fiduciary Assets and Liabilities, Agency Funds
Cash and investments
Restricted cash and investments
Total cash and investments
24,942,987
1,029,966
6,315
$ 582,434,029
$ 551,645,259
24,072,496
6,716,274
$ 582,434,029"
Custodial credit risk (investments)
The City uses Union Bank of California (UBC) as a third-party custody and safekeeping service for its investment
securities. Custodial credit risk is the risk that the City will not be able to recover the value of its investments in the event
of a UBC failure. All City investments held in custody and safekeeping by UBC are held in the name of the City and are
segregated from securities owned by the bank. This is the lowest level of custodial credit risk exposure. Investments are
settled on a Delivery vs. Payment (DVP) in accordance with the third party custodial agreement.
Custodial credit risk (deposits)
The City maintains cash accounts at Wells Fargo Bank (WFB) and UBC. At the conclusion of each business day,
balances in these accounts are "swept" into overnight pooled investments, which are pooled into funds collateralized with
U.S. government securities (guaranteed) or U.S. agency securities (government sponsored). The California Code
authorizes both of these types of investments. A small amount of cash is not swept from the WFB checking accounts to
cover checks that may be presented for payment. Amounts up to $100,000 are Federal Deposit Insurance Corporation
(FDIC) insured.
66
CITY OF CARLSBAD
Notes to the Financial Statements
Note 3. Deposit and Investment Risk (Continued)
Concentration credit risk
Concentration credit risk is the heightened risk of potential loss when investments are concentrated in one issuer. The
California state code requires that total investments in medium-term corporate notes of all issuers not exceed 30% of the
portfolio. As of June 30, 2007, approximately 9.8% of the City's total portfolio investments, based on cost, were in
medium-term corporate notes.
For concentration of investments in any one issuer, the City's Investment Policy requires that no more than 5% of
investments in corporate notes be in any one issuer. There is no similar requirement in either the state code or the City's
Investment Policy for U.S. agencies. As of June 30, 2007, the portfolio was in compliance with this requirement.
Default credit risk
Default credit risk is the risk that the issuer of the security does not pay either the interest or principal when due. Debts of
most U.S. agencies are not backed by the full faith and credit of the federal government; however, because the agencies
are U.S. Government-sponsored, they carry AAA credit ratings. The default credit risk of these investments is minimal.
California state code limits investments in medium-term corporate notes to the top three credit ratings (AAA, AA, and A).
However, it is the City's policy to limit investments to the top two credit ratings (AAA and AA). As of June 30, 2007,
approximately 5.5% of the investments in medium-term corporate notes did not have one of these two credit ratings. This
investment had a credit rating of A+. This investment was made when the credit rating was AA. California state code and
the City's Investment Policy allow the City Treasurer to determine the course of action to correct exceptions to the Policy.
It is the intent of the City Treasurer to hold these investments in the portfolio until maturity unless events indicate they
should be sold. The default credit risk for corporate notes with a credit rating of single A is greater than U.S. federal
agencies, but is considered by the City Treasurer to be within acceptable limits for purposes of holding to maturity. A
credit rating of single A is within State code requirements.
The Local Agency Investment Fund (LAIF) is an external investment pool managed by the California State Treasurer. Its
investments are short-term and follow the investment requirements of the State. As of June 30, 2007, the average maturity
of the LAIF investments was 176 days. LAIF is not rated; however, the City Treasurer considers the default credit risk of
LAIF to be minimal.
Interest rate risk
Interest rate risk is the risk that investments will lose market value because of increases in market interest rates. A rise in
market interest rates will cause the market value of investments made earlier at lower interest rates to lose value. The
reverse will cause a gain in market value. As of June 30, 2007, the portfolio had a 0.6% loss in market value.
The City's investment policy has adopted two means of limiting its exposure to market value losses caused by rising
market interest rates: (1) limiting total portfolio investments to a maximum modified duration of 2.2, and (2) requiring
maturing investments within one year are equal to an amount that is not less than two-thirds of the current fiscal year's
operating budget. The City met those requirements as follows:
1. As of June 30, 2007, the modified duration of the portfolio was 1.686. Modified duration is a prospective
measure of the sensitivity of a fixed-income security's value to changes in market rates of interest. Modified
duration identifies the potential gain/loss in value before it actually occurs. For example, a modified duration of
1.5 indicates that when and if a 1% change in market interest rates occurs, a 1.5% change in the security's value
will result. Investments with modified durations of one to three are considered to be relatively conservative.
2. As of June 30, 2007, maturities within one year exceeded the required minimum of $115,000,000 (two-thirds of
current year operating budget for the City per the 2006-07 Operating Budget adopted by the City Council).
67
CITY OF CARLSBAD
Notes to the Financial Statements
Note 4. Due To and From Other Funds
There were no amounts due from funds within the City to other funds within the City at June 30, 2007.
Note 5. Advances To and From Other Funds
The following table shows amounts advanced from governmental funds within the City to other funds within the City at
June 30, 2007:
Advances From Advances To Amount
General Fund
General Fund
General Fund
Redevelopment Debt Service Funds
Financing Districts Special Revenue Funds
Enterprise Funds:
Go If Course
Solid Waste
$ 14,857,658
808,751
46,576,618
1,088,219
(1)
Special Revenue Funds: Capital Project Funds:
Gas Tax Bridge and Thoroughfare Districts 3,643,344
Capital Projects Funds: Capital Project Funds:
General Capital Construction Park Development 1,180,000
Planned Local Drainage Facilities 420,021
Public Facilities Construction 7,100,000
Public Facilities Construction Park Development 4,550,000
$ 80,224,611
Advances to and from other funds are primarily long term advances used to fund capital projects in advance of related
revenues.
(1) The advance between the General Fund and the Golf Course Fund is estimated to be repaid over a 35-40 year period
through possible disposition of golf course assets and residual operating income from golf course operations.
68
CITY OF CARLSBAD
Notes to the Financial Statements
Note 6. Capital Assets
Capital asset activity was as follows for the year ended June 30, 2007:
Balance at
July 1,2006 Increases
Governmental activities:
Capital assets, not being depreciated:
Land (including right-of-way)
Construction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Improvements, other than buildings
Machinery and equipment
Infrastructure
Total capital assets,
being depreciated
Less accumulated depreciation for:
Buildings
Improvements, other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets
being depreciated, net
$ 128,582,931
101,370,353
229,953,284
69,476,635
28,273,684
23,073,418
409,728,105
530,551,842
(15,742,296)
(3,928,141)
(14,537,906)
(108,668,872)
(142,877,215)
387,674,627
$
20,696,700
20,696,700
941,924
2,000,487
4,965,861
37,232,738
45,141,010
(1,433,374)
(1,163,713)
(2,025,427)
(8,711,847)
(13,334,361)
31,806,649
Decreases
$ (450,000)
(10,749,435)
(11,199,435)
(186,000)
(82,083)
(1,575,321)
-
(1,843,404)
28,080
70,956
1,228,558
-
1,327,594
(515,810)
Balance at
June 30, 2007
$ 128,132,931
111,317,618
239,450,549
70,232,559
30,192,088
26,463,958
446,960,843
573,849,448
(17,147,590)
(5,020,898)
(15,334,775)
(117,380,719)
(154,883,982)
418,965,466
Governmental activities
capital assets, net $ 617,627,911 $ 52,503,349 $ (11,715,245) $ 658,416,015
69
CITY OF CARLSBAD
Notes to the Financial Statements
Note 6. Capital Assets (Continued)
Business-type activities:
Capital assets, not being depreciated:
Land (including right-of-way)
Construction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Improvements, other than buildings
Machinery and equipment
Infrastructure
Wastewater treatment facility
Total capital assets,
being depreciated
Less accumulated depreciation for:
Buildings
Improvements, other than buildings
Machinery and equipment
Infrastructure
Wastewater treatment facility
Total accumulated depreciation
Total capital assets
being depreciated, net
Balance at
July 1,2006
$ 8,663,600
77,740,020
86,403,620
16,941,971
5,556,571
1,475,229
169,637,849
39,510,985
233,122,605
(1,226,904)
(2,285,743)
(1,265,265)
(39,664,940)
(24,592,244)
(69,035,096)
164,087,509
Increases
$
35,129,093
35,129,093
3,280,016
-
777,437
46,615,944
5,418,182
56,091,579
(354,658)
(148,693)
(63,145)
(3,427,646)
(850,119)
(4,844,261)
51,247,318
Decreases
$
(31,500,190)
(31,500,190)
(8,763)
-
(233,425)
-
-
(242,188)
8,763
-
207,791
-
-
216,554
(25,634)
Balance at
June 30, 2007
$ 8,663,600
81,368,923
90,032,523
20,213,224
5,556,571
2,019,241
216,253,793
44,929,167
288,971,996
(1,572,799)
(2,434,436)
(1,120,619)
(43,092,586)
(25,442,363)
(73,662,803)
215,309,193
Business-type activities
capital assets, net $ 250,491,129 $ 86,376,411 $ (31,525,824) $ 305,341,716
70
CITY OF CARLSBAD
Notes to the Financial Statements
Note 6. Capital Assets (Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 540,691
Community development 202 011
Public safety 45 j ^932
Community services 1,891,422
Public works 8,859,735
Capital assets held by the internal service funds
(charged to various functions based on
their usage of the assets) 1,388,520
Total depreciation expense - governmental activities $ 13,334,361
Business-type activities:
Wastewater $ 2,421,928
Water 2,422,333
Total depreciation expense - business-type activities $ _4,844,261
71
CITY OF CARLSBAD
Notes to the Financial Statements
Note 7. Accrued Liabilities
Accrued liabilities were as follows
Governmental activities:
General Fund
Assessment and Other
Districts
Community Facilities
District No. 1
General Capital Construction
Public Facilities
Construction
Rancho Santa Fe Road Project
Other Governmental Funds
Subtotals
* Internal Service Funds
Total governmental
activities
Business-type activities:
Enterprise funds:
Carlsbad Municipal Water
District
Golf Course
Wastewater
Solid Waste
at June 30, 2007:
Marbella
Vendors and Salaries and Settlement/
Miscellaneous Benefits Legal Exp.
$ 2,045,630 $2,870,845 $
861,197
226,831
271,744
67,181
76,805
665,115 90,419
4,214,503 2,961,264
374,280 3,191,539
$ 4,588,783 $6,152,803 $
$ 590,836 $ 302,142 $11,316,100
1,226,756
1,037,080 65,615
157,050 63,673
Refuse
Disposal Total
$ - $ 4,916,475
861,197
226,831
271,744
67,181
76,805
755,534 •
7,175,767
3,565,819
$ - $10,741,586
$ - $ 12,209,078
1,226,756
1,102,695
271,529 492,252
Total business-type
activities $ 3,011,722 $ 431,430 $11,316,100 $ 271,529 $15,030,781
* Internal service funds have been included with governmental activities on the Government-wide Statement of Net
Assets.
72
CITY OF CARLSBAD
Notes to the Financial Statements
Note 8. Long-term Debt
The folowing is a summary of changes in the principal balance of long-term debt for the year ended June 30, 2007:
Governmental activities:
Bonds
Certificates of participation
Obligations under capital leases
Total governmental
activities
Business-type activities:
Bonds
Installment purchase agreement
Loans payable
Obligations under capital leases
Less deferred charges
Plus issuance discount
Total business type
activities
Principal
Balance at
June 30, 2006 Additions
Principal
Balance at Due Within
Reductions June 30,2007 One Year
$12,065,000 $
2,105,000
703
$ 420,000
670,000
703
$11,645,000 $ 440,000
1,435,000 700,000
$14,170,703 $1,090,703 $13,080,000 $1,140,000
$
6,730,000
10,592,380
-
17,322,380
(437,443)
-
$18,540,000
-
19,040,964
721,131
38,302,095
(419,821)
296,839
$
605,000
537,565
22,020
1,164,585
(67,855)
5,204
$18,540,000
6,125,000
29,095,779
699,111
54,459,890
(789,409)
291,635
$
640,000
1,399,163
130,902
2,170,065
-
-
; 16,884,937 $38,179,113 ; 1,101,934 $53,962,116 $2,170,065
Long-term debt at June 30, 2007 is comprised of the following issues:
Governmental long-term debt
Balance at
June 30, 2007
1993 Carlsbad Housing and Redevelopment Commission Tax Allocation
Bonds, principal due in amounts ranging from $440,000 to $1,000,000 on
September 1 of each year through 2023. Interest payable on March 1 and
September 1 at rates varying from 5.25% to 5.30% per annum. The City
posted a surety bond in lieu of cash reserve in the amount of $1,055,953.
Payable from redevelopment property tax increment revenues.
1997 Hosp Grove Refunding Certificates of Participation, principal due in
amounts ranging from $700,000 to $735,000 on August 1 of each year
through 2008, interest payable on August 1 and February 1 at rates varying
from 4.60% to 4.70% per annum. Payable from the General Fund, with a
required reserve amount of $659,500.
Sub-total governmental long-term debt
Less current portion
Total long-term portion of governmental debt
$ 11,645,000
1,435,000
13,080,000
1,140,000
$ 11,940,000
73
CITY OF CARLSBAD
Notes to the Financial Statements
Note 8. Long-term Debt (Continued)
Balance at
Business-type long-term debt June 30, 2007
2006 Carlsbad Public Financing Authority (Golf Course) Revenue Bonds, principal due
in varying amounts ranging from $275,000 to $1,185,000 on September 1 of each
year beginning in 2008 through 2036, interest payable on March 1 and September 1
of each year through 2036, at rates varying from 4.00% to 5.00% per annum. The
required reserve amount is $1,238,325. Payable from golf course operating .
revenues and lease payments by the City. $18,540,000
1997 Encina Financing Joint Powers Authority (EFJPA) Installment Purchase
Agreement, principal due in varying amounts ranging from $640,000 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 4.90% to 5.25% per
annum. The required reserve amount is $937,169. Payable from sewer
user fees. 6,125,000
1993 Carlsbad Municipal Water District loan agreement with the State
Water Resources Control Board. Principal is due in varying amounts
ranging from $123,222 to $151,558 on November 30 of each year through
2013, interest payable on November 30 of each year at 2.90% per annum.
Payable from recycled water user fees. 970,858
2005 Carlsbad Municipal Water District loan agreement with the State
Water Resources Control Board. Principal is due in varying amounts
ranging from $409,896 to $631,082 on June 1 of each year through
2025, interest payable on June 1 of each year at 2.50% per annum.
Payable from recycled water user fees. 9,284,608
2006 Carlsbad Municipal Water District loan agreement with the State
Water Resources Control Board. Principal is due in varying amounts
ranging from $765,539 to $1,152,734 on April 1 of each year through
2027, interest payable on April 1 of each year at 2.30% per annum.
Payable from recycled water user fees. 18,840,313
The Carlsbad Public Financing Authority has entered into several golf course maintenance
equipment lease purchase agreements. As of June 30, 2007, the City has purchased
maintenance equipment totaling $721,131. The lease term for each lease is 60 months,
with an interest rate of 4.90%. The leases expire in April 2012. Payable from
golf course operating revenues and lease payments by the City. 699, 111
Subtotal business-type long-term debt 54,459,890
Less unamortized discounts, issuance costs and deferred charges (497,774)
Less current portion (2,170,065)
Total long-term portion of business-type debt $51,792,051
74
CITY OF CARLSBAD
Notes to the Financial Statements
Note 8. Long-term Debt (Continued)
The aggregate maturities of long-term debt are as follows:
Governmental Activities Business-type Activities
Year ended June 30:
2008
2009
2010
2011
2012
2013-2017
2018-2022
2023-2027
2028-2032
2033-2037
Principal
$ 1,140,000 :
1,200,000
490,000
515,000
540,000
3,165,000
4,080,000
1,950,000
-
-
S 13,080,000 !
Interest
$ 652,310
595,182
552,840
526,459
498,765
2,024,606
1,077,296
104,675
-
-
$ 6,032,133
Principal
$ 2,170,066
2,413,296
2,497,342
2,587,515
2,664,481
11,630,794
10,253,688
10,637,708
4,215,000
5,390,000
$ 54,459,890
Interest
$ 1,740,368
1,768,300
1,683,794
1,595,131
1,499,575
6,178,732
4,594,517
3,023,053
1,706,062
630,000
$ 24,419,532
Note 9.Rate Covenants
The 1997 Encina Financing Joint Powers Authority Installment Purchase Agreement 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) of at least 1.25 times debt service for that year.
The 2005 Carlsbad Municipal Water District loan agreement with the State Water Resources Control Board requires that
the District set its charges for services and rates for fees each year at rates sufficient to produce net revenues (after paying
the operating and maintenance expenses of the District, excluding depreciation) of at least 1.0 times debt service for that
year.
The 2006 Carlsbad Public Financing Authority (Golf Course) Revenue Bonds is required to set rates, fees and charges
which, when added to other revenues received from the Authority, are at least sufficient to yield gross revenues which are
sufficient to pay all operating and maintenance expenses estimated by the Authority, and the principal and interest on the
bonds as they become due and payable, reserve requirements, and all other payments requried to meet any other
obligations of the Authority.
All rate covenants requirements were met for the year ended June 30, 2007.
75
CITY OF CARLSBAD
Notes to the Financial Statements
Note 10. Debt without Government Commitment
In the opinion of City officials, the bonds listed below 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 bond. Accordingly, no liability has been recorded in
the accompanying financial statements.
Special assessment bonds
As of June 30, 2007, the City has six series of Assessment District Bonds outstanding in the amount of $71,473,433.
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. The City collects assessments to pay the bond debt. These monies are
accounted for in the Assessment Districts Agency funds.
Community Facilities District No. 3
As of June 30, 2007, the City has Community Facilities District No. 3 (CFD #3) Bonds outstanding in the amount of
$11,490,000. These bonds were issued under the provisions of the Mello-Roos Community Facilities Act of 1982 and
were used to finance public infrastructure improvement projects. The City collects assessments to pay the bond debt.
These monies are accounted for in the CFD #3 Agency fund.
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 which will be partially occupied by persons of low or moderate
income. The total amount of mortgage revenue bonds outstanding as of June 30, 2007 is $24,590,000. 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 deeds of trust, irrevocable letters of
credit, and irrevocable surety bonds.
Industrial development bonds
The Industrial Development Authority of the City has issued a $2,070,000 Industrial Development Revenue Bond. The
total prinicpal amount oustanding as of June 30, 2007 is $1,568,000. Any costs relating to the issuance of the Bond, as
well as the principal and interest payments, are to be paid by the private party benefiting from the bond issue.
Hi
•I
Ml
n
76
77
CITY OF CARLSBAD
Notes to the Financial Statements
Note 11. Fund Balances
The following is a summary of reserved and unreserved fund balances as of June 30, 2007:
Governmental Funds
Fund Balances
Redevelopment Assessment Community
Debt Service and Other Facilities
General Funds Districts District No. 1
107,377
22,306
49,719,055
Reserved for:
Loans receivable
Inventory
Prepaid items
Debt service
Advances to other other funds*
Flower fields preservation
Library endowment
Low and moderate income housing
Encumbrances
Totals
Unreserved:
Designated for approved capital
projects
Designated for continuing
appropriations
Totals
Undesignated
Total fund balances
* Only reflects that portion of fund balance invested in interfund advances (the General Fund amount is net of $13,612,191
in deferred revenue for measurable but unavailable interest earned on such advances).
6,656,690
56,505,428
13,891,802
13,891,802
37,302
37,302
2,118,942
15,889,197
18,008,139
3,351,913
3,351,913
48,508,891
1,831,027
50,339,918
52,191,601 (12,905,512)
$122,588,831 $(12,905,512)$ 18,045,441 $53,691,831
ppto
i
m
78
CITY OF CARLSBAD
Notes to the Financial Statements
Note 11. Fund Balances (Continued)
Governmental Funds
General
Capital
Construction
$
8,700,021
1,515,402
10,215,423
Public
Facilities
Construction
$
4,550,000
645,423
5,195,423
Rancho Santa Other
Fe Road Governmental
Project Funds
$ - $ 12,938,756
344,389
659,500
3,643,344
935,000
250,000
3,564,862
733,173 2,483,013
733,173 24,818,864
Total
$ 13,046,133
22,306
344,389
659,500
66,612,420
935,000
250,000
3,564,862
15,422,916
100,857,526
10,269,687 5,944,198 29,856,084 96,697,802
23,119,705
23,119,705
21,165,790
28,423,840
38,693,527
_
6,323,961
12,268,159
_
20,496,176
50,352,260
50,091,343
109,975,708
206,673,510
110,543,222
$54,500,918 $43,888,950 $13,001,332 $125,262,467 $418,074,258
79
CITY OF CARLSBAD
Notes to the Financial Statements
Note 11. Fund Balances (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 flower-fields preservation represent resources set aside to support floriculture research for the preservation of
the "Flower Fields" located in Carlsbad.
Reserves for library endowment represent resources set aside to support programs in the Dove Library auditorium.
Reserves for encumbrances represent commitments related to unperformed contracts for services and undelivered goods.
Unreserved-undesignated and unrestricted represents the fund balance or net assets remaining after reduction for reserved
and designated fund balances or net assets.
Note 12. Accumulated Fund Deficits/Negative Net Assets
The following funds reported deficits in fund balances or net assets as of June 30, 2007:
Deficit Balance
Debt Service Funds:
Redevelopment Areas $ (12,905,512)
Internal Service Funds:
Risk Management (232,391)
80
CITY OF CARLSBAD
Notes to the Financial Statements
Note 13. Interfund Transfers
Interfund transfers for the year ended June 30, 2007, consisted of the following:
Fund
Transfers
In From
Other Funds
Transfers
Out To
Other Funds
Major Funds:
General
Redevelopment Debt Service Funds
Rancho Santa Fe Road Project Capital Project Fund
Nonmajor Governmental Funds
Enterprise Funds, Carlsbad Municipal Water District
Internal Service Funds
Totals
$ 13,960 !
-
-
9,709,264
-
436,821
B 7,511,821
1,420,000
28,133
800,091
400,000
-
$ 10,160,045 S 10,160,045
Transfers are used to (1) move receipts restricted to debt service from the funds collecting the receipts to the debt service
fund as debt service payments become due, (2) move the remaining fund balances of closed funds to the General Fund, (3)
move revenues and expenditures to the appropriate funds, and (4) use unrestricted revenues collected in the General Fund
to finance various programs accounted for in other funds in accordance with budgetary authorizations.
Note. 14 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 Self
Insured Benefits 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 catastrophic 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, 2007, the
unencumbered fund equity for the Risk Management Self-Insurance fund was approximately ($232,000) due to the large
increase in legal fees and expenses associated with a substantial property damage claim. Although there is currently
insufficient cash in the fund to pay all existing and anticipated expenditures at June 30, 2007, additional cash will be
available in the fund to cover these claims through the rates being charged during the 2007-08 Fiscal Year.
Dental insurance coverage for City employees is administered by MetLife. Under the City's agreement with MetLife,
MetLife will pay dental claims for each covered member, up to a maximum of $1,500 per calendar year.
81
CITY OF CARLSBAD
Notes to the Financial Statements
Note 14. Risk Management (Continued)
The City is insured for workers' compensation claims by Continental Casualty. Continental Casualty provides coverage
up to a maximum of $2,500,000 per occurrence for losses which exceed the City's self-insured retention of $1,000,000
per claim for police and fire employees, and $750,000 for all other employees. At June 30, 2007, the unrestricted fund
equity for the Workers' Compensation Self-Insurance fund was approximately $2,592,000.
The estimated claims payable reported at June 30, 2007 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. Settled claims did not exceed insurance coverage
during the past two fiscal years. However, in Fiscal Year 2006-07, the City settled a large property damage claim related
to the Marbella condominiums that exceeded the City's insurance coverage. The City has received some reimbursements
from their insurance carrier for this excess amount, and continues to pursue additional recoveries.
Changes in the estimated claims payable amounts in Fiscal Years 2006 and 2007 for the three internal service funds are as
follows:
Self-Insured Benefits fund:
2005 - 06
2006 - 07
Claims
Beginning
Balance
Expense and
Changes in
Estimates
Claim
Payments
Ending
Balance
78,486
77,866
396,579
457,325
(397,199)
(459,983)
77,866
75,208
Risk Management fund:
2005 - 06
2006 - 07
1,927,843
752,020
(551,681)
307,805
(624,142)
(517,304)
752,020
542,521
Workers' Compensation fund:
2005 - 06
2006 - 07
3,613,777
3,297,948
934,484
887,759
(1,250,313)
(1,112,101)
3,297,948
3,073,606
Note 15. Joint Ventures
Encina Water Pollution Control Facilities
The Encina Water Pollution Control Facilities (the Facilities) are wastewater facilities owned jointly by the Cities of
Carlsbad, Vista and Encinitas and the Leucadia County Water District, the Buena Vista Sanitation District and the
Vallecitos Water District. The Encina Wastewater Authority (EWA) is a joint powers authority established to operate and
administer the Facilities. It is responsible for the management, maintenance and operations of the joint system.
Ownership interests in the Facilities are determined by joint agreement at the time the assets are acquired. As of June 30,
2007, the Cities and Districts have the following approximate ownership interest:
City of Carlsbad
City of Vista
Leucadia Wastewater District
Vallecitos Water District
Buena Sanitation District
City of Encinitas
25%
22%
20%
20%
8%
5%
82
CITY OF CARLSBAD
Notes to the Financial Statements
Note 15. Joint Ventures (Continued)
EWA's financial statements for the fiscal year ended June 30, 2006 (the latest available) reflect the following:
Total assets $ 75,229,524
Total liabilities 2,945,630
Net assets S 72,283,894
The EWA does not recognize net income or loss. Net operating expenditures in excess of users' assessments are treated as
accounts receivable on 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 income (before member billings) for the EWA totaled $63,539 in
Fiscal Year 2006. The financial statements of the EWA can be obtained at 6200 Avenida Encinas, Carlsbad, California
92011 or at www.encinajpa.com.
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 Finance Department.
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, 2007:
Member
City of Carlsbad
Leucadia Wastewater District
Agreement
Balance
$ 6,125,000
4,175,000
$ 10,300,000
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.
The City's share in the accounts of the Authority is recorded in the Wastewater Enterprise Fund. The expansion of the
Facility is shown as a capital asset of the Wastewater Enterprise Fund.
83
CITY OF CARLSBAD
Notes to the Financial Statements
Note 16. 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 ordinances. Copies of PERS' annual financial report may be
obtained from their executive office: Lincoln Plaza, 400 P Street, Sacramento, California 95814.
Funding policy
Participants are required to contribute 8% (9% for safety employees) of their annual covered salary. The City makes 7%
of the required 8% contributions for non-safety employess, and 8% of the required 9% contributions for the City's safety
employees. The City is required to contribute at an actuarially determined rate. For the year ended June 30, 2007, the
employer contribution rate for the City of Carlsbad (as a percentage of covered payroll) was 27.572% for safety employees
and 19.810% for miscellaneous employees. The contribution requirements of plan members and the City are established
by PERS.
In October 2006, the City was notified by PERS that the employer contribution rate for the City of Carlsbad (as a
percentage of payroll) will be 28.462% for safety employees and 20.478% for miscellaneous employees for the fiscal year
ended June 30,2008.
Annual pension cost
For Fiscal Year 2006-07, the City's annual pension cost (employer contribution) of $4,453,495 for safety and $5,746,407
for miscellaneous to PERS was equal to the City's required and actual contributions. For Fiscal Year 2006-07, the
member contributions paid by the City and its employees were $1,475,551 for safety and $2,343,208 for miscellaneous.
The required contribution was determined as part of the June 30, 2004, actuarial valuation using the entry age normal
actuarial cost method. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative
expenses), (b) projected annual salary increases of 3.25% to 14.45% depending on age, service and type of employment,
(c) 3.0% inflation factor, (d) payroll growth of 3.25%, and (e) individual salary growth that utilizes a merit scale varying
by duration of employment coupled with an assumed annual inflation growth of 3.0% and an annual production growth of
0.25%. Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into PERS.
Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses
that occur in the operation of the plan are amortized over a rolling period, which results in an amortization of about 6% of
unamortized gains and losses each year. If the plan's accrued liability exceeds the actuarial value of plan assets, then the
amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30 year
amortization period.
Three-year trend information for PERS (safety)
Annual Pension
Fiscal Year Cost (Employer Percentage of Net Pension
Ending Contribution) APC Contributed Obligation
6/30/05 $ 3,917,550 100% $
6/30/06 4,152,149 100%
6/30/07 4,453,495 100%
84
CITY OF CARLSBAD
Notes to the Financial Statements
Note 16. Retirement Plan (continued)
Three-year trend information for PERS (miscellaneous)
Annual Pension
Fiscal Year Cost (Employer
Ending
6/30/05
6/30/06
6/30/07
Percentage of
Contribution) APC Contributed
$ 3,112,596
5,667,848
5,746,407
100%
100%
100%
Net Pension
Obligation
cj>
-
-
Required supplementary information
Funded status
Valuation
Date
6/30/04
6/30/05
6/30/06
Funded status
Valuation
Date
6/30/04
6/30/05
6/30/06
of plan (safety)
Entry Age
Normal
Accrued
Liability
$ 110,306,847 !
123,237,518
136,506,300
Unfunded
Actuarial Liability/
Value (Excess
of Assets Assets)
B 92,529,369 $ 17,777,478
102,021,173 21,216,345
111,646,998 24,859,302
Funded
Status
83.9% $
82.8%
81.8%
Annual
Covered
Payroll
13,382,181
14,305,227
15,030,260
UAAL
As a %
of Payroll
132.8%
148.3%
165.4%
of plan (miscellaneous)
' Entry Age
Normal
Accrued
Liability
$ 132,074,893 1
149,626,877
164,803,264
Unfunded
Actuarial Liability/
Value (Excess
of Assets Assets)
$ 105,423,856 $ 26,651,037
117,576,007 32,050,870
131,137,658 33,665,606
Funded
Status
79.8% $
78.6%
79.6%
Annual
Covered
Payroll
1 26,476,671
26,688,294
28,237,819
UAAL
As a %
of Payroll
100.7%
120.1%
119.2%
85
CITY OF CARLSBAD
Notes to the Financial Statements
Note 17. Postretirement Healthcare
The majority of City of Carlsbad employees are under the City of Carlsbad defined contribution plan. The Carlsbad
Municipal Water District has a defined benefit plan.
Carlsbad Municipal Water District
The first plan is for active and retired employees that were employed with the Carlsbad Municipal Water District
(CMWD) at the time the District was acquired by the City. Per Resolution 614, all former employees of CMWD
(including dependents) are eligible for postretirement health care benefits if they voluntarily retire after the age of 50, with
no less than five years of service and whose age, combined with years of service, equals 70 or more. There are
approximately eleven active and thirteen retired plan members as of June 30, 2006.
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. This plan is
administered by the Association of California Water Agencies (ACWA). Expenditures were approximately $128,000 for
post-retirement health care costs during Fiscal Year 2006-07. Based on an actuarial valuation performed as of June 30,
2006, the District's liability for the current and past service costs of these benefits is approximately $2,549,000.
City of Carlsbad
City of Carlsbad retirees are eligible for a postretirement healthcare subsidy. This plan is administered by the California
Public Employees Retirement System (PERS). There are approximately 630 active and 93 retired plan members as of
June 30, 2006. Surviving spouses of eligible retirees are eligible for the City subsidy. Surviving spouses/domestic
partners of deceased active members are eligible for the City subsidy only if the employee had attained age 50 with five
years of service.
The City pays a monthly subsidy per eligible employee/retiree regardless of coverage elected:
Calendar year 2006 $64.60
Calendar year 2007 80.80
Calendar year 2008 97.90
Thereafter, the subsidy is adjusted annually to reflect changes in the medical component of the Consumer Price Index.
Expenditures for postretirement health care benefits are funded on a pay-as-you-go basis. Expenditures were
approximately $86,000 for City subsidy payments during Fiscal Year 2006-07. Based on an actuarial valuation performed
as of June 30, 2006, the City's liability for the current and past service costs of these benefits is approximately $5,404,000.
The GASB recently issued Statement No. 45 to address the accounting and disclosure treatment for this type of plan.
Effective with the fiscal year ending June 30, 2008, the City will be required to recognize postretirement health care costs
on an accrual basis over a period approximating the employees' years of service, and to provide information about
actuarial liabilities associated with these benefits, and whether and to what extent progress is being made in funding the
plan. Jji anticipation of implementing GASB 45, the City transferred over the actuarial calculated liabities ($2,549,000 for
CMWD employees and $5,404,000 for City employees) to the Self Insured Benefits special revenue fund at June 30, 2007.
These amounts were shown as expenditures/expenses in the respective funds. The City is currently evaluating irrevocable
trust options to invest these funds in, and is anticipating transferring these funds into this trust by the end of Fiscal Year
2008, in accordance with GASB 45.
86
CITY OF CARLSBAD
Notes to the Financial Statements
Note 18. Commitments and Contingencies
Operating lease
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, adjusted annually based upon an increase in the consumer price
index, not to exceed 6% of the previous year's rents, and re-adjusted in years 10 and 15 based upon market rental values,
through August 2007. Current fiscal year lease payments totaled $94,044.
Minimum future rental payments under the operating lease as of June 30, 2007 are:
2008 $ 16,614
Total minimum future rental payments $ 16,614
Water purchase agreements
On March 25, 1991, CMWD entered into a twenty year agreement with the Leucadia County Water District, to purchase
recycled water to be used primarily for irrigation at the La Costa Resort & Spa golf course, and for other appropriate uses
within the CMWD's boundaries. CMWD agreed to purchase of minimum of 394 acre feet of recycled water per fiscal
year, at a basic price of retail potable water charged to residential users within the CMWD boundary. The current cost is
$724.49 per acre foot or a minimum of $285,449 per fiscal year, regardless of the actual amount used.
On August 5, 2003, CMWD entered into a twenty-two year agreement with the Vallecitos Water District, to purchase
three million gallons per day (3,360 acre feet) of recycled water for uses throughout CMWD's boundaries. The agreement
stipulates that CMWD pay for the actual operating costs of the Mahr Reservoir, which produces the water, since CMWD
is the only customer of the water produced. The estimated operating costs for the period ended June 30, 2007 is $638,000.
Note 19. Prior Period Adjustments
The City adjusted the net book value of Carlsbad's interest in the Encina wastewater treatment facility to more accurately
reflect the value disclosed in the Encina Wastewater Authority Annual Report as of June 30, 2006 (the latest available). In
addition, the City adjusted the previously capitalized interest on the golf course project. The cumulative effect of these
changes on the beginning net assets balance of business-type activities is as follows:
Business-type
Activities
Net assets at July 1,2006 $ 335,063,262
Reduction in waste water treatment facility capital asset acquired value (3,298,307)
Increase in wastewater treatment facility capital asset accumulated depreciation (12,431,540)
Adjust the capitalization of interest expense on the golf course project 827,467
Net assets at July 1, 2006, as restated $ 320,160,882
87
p
to
M
M
*in
88
SUPPLEMENTARY INFORMATION
89
CITY OF CARLSBAD
Combining Balance Sheet
Nonmajor Governmental Funds
June 30,2007
Special Revenue Funds
ASSETS
Cash and investments
Receivables:
Taxes
Other
Accounts, net
Due from other governments
Prepaid items
Restricted assets, cash and investments
Loan receivables
Advances to other funds
Affordable
Housing
$ 12,443,742
-
36,616
-
-
-
-
9,949,406
-
Community
Development
Block Grant
$ 11,492
-
-
-
7,834
-
-'
224,404
-
Donations and
Endowments
$ 1,729,934
-
-
3,000
-
-
-
-
-
Financing
Districts
$3,016,176
-
9,489
7,342
-
-
-
-
-
Gas
Tax
$ 5,734,261
-
-
-
-
-
-
3,643,344
Total assets
LIABILITIES AND FUND BALANCES
$ 22,429,764 $ 243,730 $ 1.732,934 $ 3,033,007 $ 9,377,605
Liabilities:
Accrued liabilities
Deposits payable
Advances from other funds
Deferred revenue
Total liabilities
Fund balances:
Reserved for:
Loans receivable
Prepaid items
Debt service
Advances to other funds
Flower fields preservation
Library endowment
Low and moderate income housing
Encumbrances
Unreserved:
Designated for approved capital projects
Designated for continuing appropriations
Undesignated
Total fund balances
Total liabilities and fund balances
12,858 $ 39,481 $ 30,551 $ 151,418 $ 58,898
808,751
12,858
9,949,406
39,481 30,551 960,169
224,404
58,898
3,643,344
2,550,862
9,584
9,907,054
22,416,906
$ 22,429,764 1
106,626
(126,781)
204,249
$ 243,730
935,000
250,000
20,339
133,474
363,570
1,702,383
$ 1,732,934
175,795
1,897,043
2,072,838
$ 3,033,007
2,912
2,946,264
2,726,187
9,318,707
$ 9,377,605
90
Special Revenue Funds
Low and
Habitat and Moderate
Agricultural Income
Management Housing
$ 7,669,890 $ 3,948,583
11,199
188
2,764,946
$ 7,669,890 $ 6,724,916
Other Police
Special Grants and
Revenue Asset
Funds Forfeiture
$ 1,221,255 $ 725,422
6,695
$1,221,255 $ 732,117
Section 8
Rental
Assistance
$ 907,892
19,729
344,389
$ 1,272,010
Tyler
Court
Apartments Totals
$ 1,253,889 $ 38,662,536
11,199
46,293
30,071
14,529
344,389
12,938,756
3,643,344
$1,253,889 $ 55,691,117
$ - $ 3,931
3,931
2,764,946
1,014,000
15,583
3,309,968
4,359,922 2,926,456
7,669,890 6,720,985
$ 7,669,890 $ 6,724,916
$ - $ 4,717
4,717
192
50,132
1,221,255 677,076
1,221,255 727,400
$1,221,255 $ 732,117
$ 21,468
32,470
53,938
344,389
12,398
861,285
1,218,072
$ 1,272,010
$ - $ 323,322
21,900 54,370
808,751
21,900 1,186,443
12,938,756
344,389
3,643,344
935,000
250,000
3,564,862
343,429
2,946,264
6,219,761
1,231,989 23,318,869
1,231,989 54,504,674
$1,253,889 $ 55,691,117
(Continued)
91
CITY OF CARLSBAD
Combining Balance Sheet
Nonmajor Governmental Funds (Continued)
June 30,2007
ASSETS
Cash and investments
Receivables:
Taxes
Other
Debt Service
Fund
Hosp Grove
COPs
$ 469,333
15,788
Capital Project Funds
Bridge and
Thoroughfare
Districts
$ 10,691,189
Grants
and Other
Funds
$ 795,092
Infrastructure
Replacement
$ 28,598,181
Park
Development
$ 9,045,807
Accounts, net
Due from other governments
Prepaid items
Restricted assets, cash and investments
Loan receivables
Advances to other funds
Total assets
LIABILITIES AND FUND BALANCES
14,270
659,500
$ 1,144,621 $ 10,691,189 $ 809,362 $ 28,598,181 S 9,045,807
Liabilities:
Accrued liabilities
Deposits payable
Advances from other funds
Deferred revenue
Total liabilities
Fund balances:
Reserved for:
Loans receivable
Prepaid items
Debt service
Advances to other funds
Flower fields preservation
Library endowment
Low and moderate income housing
Encumbrances
Unreserved:
Designated for approved capital projects
Designated for continuing appropriations
Undesignated
Total fund balances
Total liabilities and fund balances
1,144,621
3,643,344
3,643,344
659,500
2,000
6,660,735
51,412 387,110
431,709 -
7,047,845
13,142 $ 21,939 $ 8,550
5,730,000
13,142 21,939 5,738,550
321,495
474,725
206,679
2,028,798
26,340,765
796,220 28.576.242
178,506
2,909,651
219,100
3,307,257
$ 1.144,621 $ 10,691,189 $ 809.362 $28,598,181 $9,045.807
92
Capital Project Funds
Planned
Local
Drainage
Facilities
$ 10,312,096
_
39,101
-
-
-
-
-
-
$ 10,351,197
Redevelopment
Agency
$ 1,507,556
_
-
6,782
-
-
-
-
-
$ 1,514,338
Traffic
Sales Tax/ Impact
TransNet Projects
$ 7,821,023 $ 10,904,722
..
-
-
152,732
-
-
-
-
$ 7,973,755 $ 10,904,722
Totals
$ 79,675,666
_
39,101
6,782
167,002
-
-
-
-
$ 79,888,551
Total Other
Governmental
Funds
$ 118,807,535
11,199
101,182
36,853
181,531
344,389
659,500
12,938,756
3,643,344
$ 136,724,289
$ 19,030
-
420,021
39,101
478,152
-
-
-
-
-
-
168,421
6,488,951
3,215,673
-
9,873,045
$ 10,351,197
$ 199,424
10,701
-
-
210,125
-
-
-
-
-
435,230
-
868,983
-
1,304,213
$ 1,514,338
$ 42,365 $ 127,762
-
-
-
42,365 127,762
-
-
-
-
-
-
228,881 598,372
3,085,369 7,290,389
4,617,140 2,888,199
-
7,931,390 10,776,960
$ 7,973,755 $ 10,904,722
$ 432,212
10,701
9,793,365
39,101
10,275,379
-
-
-
-
-
-
2,137,584
26,909,820
14,225,003
26,340,765
69,613,172
$ 79,888,551
$ 755,534
65,071
10,602,116
39,101
11,461,822
12,938,756
344,389
659,500
3,643,344
935,000
250,000
3,564,862
2,483,013
29,856,084
20,496,176
50,091,343
125,262,467
$ 136,724,289
93
CITY OF CARLSBAD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30,2007
Special Revenue Funds
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and investments
Contributions from property owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Interdepartmental charges
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):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficits) at beginning of year
Fund balances at end of year
Affordable
Housing
$
6,663
85,832
641,978
530,551
1,265,024
341,795
341,795
923,229
-
923,229
21,493,677
$22,416,906
Community
Development
Block Grant
$
257,599
92,382
349,981
360,657
9,479
370,136
(20,155)
-
(20,155)
224,404
$ 204,249
Donations and
Endowments
$
95,254
172,668
2,495
270,417
82,675
199,860
8,233
290,768
(20,351)
-
(20,351)
1,722,734
$ 1,702,383
Financing
Districts
$
2,111,582
141,761
3,000
2,256,343
(28,000)
2,206,835
2,178,835
77,508
-
77,508
1,995,330
$2,072,838
Gas
Tax
$ 1,801,889
279,172
2,081,061
3,102,511
3,102,511
(1,021,450)
(7,500)
(7,500)
(1,028,950)
10,347,657
$ 9,318,707
94
Special Revenue Funds
Habitat and
Agricultural
Management
$
.
-
-
390,963
240,627
-
-
631,590
-
-
3,215
_
-
-
3,215
628,375
-
628,375
7,041,515
$ 7,669,890
Low and
Moderate
Income
Housing
$ 666,106
-
-
-
187,252
-
-
-
853,358
-
-
92,131
-
-
-
92,131
761,227
-
761,227
5,959,758
$6,720,985
Other
Special
Revenue
Funds
$
-
-
-
65,846
'
-
-
65,846
30,000
-
-
-
11,587
-
'-
41,587
24,259
(6,330)
(6,330)
17,929
1,203,326
$ 1,221,255
Police
Grants and
Asset
Forfeiture
$
198,621
-
124,684
38,178
-
-
-
361,483
-
251,281
-
-
-
70,671
321,952
39,531
1,651
(1,781)
(130)
39,401
687,999
$ 727,400
Section 8
Rental
Assistance
$
6,030,279
-
-
12,462
-
14,354
6,057,095
-
-
5,208,220
-
-
-
5,208,220
848,875
-
848,875
369,197
$1,218.072
Tyler
Court
Apartments Totals
$ - $ 2,467,995
6,493,162
433,086 2,630,500
124,684
53,815 1,999,063
774,178
172,668
16,849
486,901 14,679,099
30,000
(28,000)
251,281
249,254 6,337,947
211,447
2,206,835
3,190,894
249,254 12,200,404
237,647 2,478,695
1,651
(15,611)
(13,960)
237,647 2,464,735
994,342 52,039,939
$1,231,989 $ 54,504,674
(Continued)
95
CITY OF CARLSBAD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds (Continued)
For the Year Ended June 30, 2007
Debt Service
Fund Capital Project Funds
Bridge and Grants
Hosp Grove Thoroughfare and Other Infrastructure Park
COPs Districts Funds Replacement Development
Revenues:
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Income from property and investments
Contributions from property owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Interdepartmental charges
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):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
71,653
71.653
$$
528,841
1,230,503
961,518
64,234
243,001
166,682
1,438,352
1,759,344 1.435,435 1.438,352
7,359 14,962
433,845 28,504 1,788,278
291,417
594,514
885,931
1,152,472
670,000 ....
83,994 ....
753,994
(682,341)
275,000
275,000
(407,341)
1,551,962
$ 1,144,621
441,204 43,466
1,318,140 1,391,969
99,852
(712,761)
(612,909)
1,318,140 779,060
5,729,705 17,160
$ 7,047,845 $ 796,220
1,788,278
(349,926)
7,200,000
7,200,000
6,850,074
21,726,168
$ 28,576,242
1,152,472
(266,541)
-
(266,541)
3,573,798
$ 3,307,257
96
<**
Capital Project Funds
Planned
Local
Drainage
Facilities
$
21,793
-
-
543,464
626,564
-
-
1,191,821
-
-
-
-
-
467,752
-
-
467,752
724,069
-
724,069
9,148,976
$ 9.873.045
Redevelopment
Agency
$
-
11,055
-
63,858
10,000
-
-
84,913
-
-
729,249
-
-
299,819
-
-
1,029,068
(944,155)
1,420,000
(71,719)
1,348,281
404,126
900,087
$ 1,304,213
Traffic
Sales Tax/ Impact
TransNet Projects
$ - $
3,554,674
701,926
-
378,714 590,883
967,404
-
-
4,635,314 1,558,287
-
-
-
-
-
4,374,268 1,463,883
-
-
4,374,268 1,463,883
261,046 94,404
712,761
-
712,761
973,807 94,404
6,957,583 10,682,556
$ 7,931,390 $10,776,960
Totals
$
4,537,985
712,981
-
3,899,763
3,671,986
-
166,682
12,989,397
22,321
-
-
729,249
-
-
10,008,821
_
-
10,760,391
2,229,006
9,432,613
(784,480)
8,648,133
10,877,139
58,736,033
$ 69,613,172
Total Other
Governmental
Funds
$ 2,467,995
11,031,147
3,343,481
124,684
5,970,479
4,446,164
172,668
183,531
27,740,149
52,321
(28,000)
251,281
7,067,196
211,447
2,206,835
13,199,715
670,000
83,994
23,714,789
4,025,360
9,709,264
(800,091)
8,909,173
12,934,533
112,327,934
$ 125,262,467
97
CITY OF CARLSBAD
Combining Schedule of Revenues and Expenditures
Budget and Actual (Budgetary Basis)
Special Revenue Funds
Year Ended June 30, 2007
Affordable Housing
Total revenues
Total expenditures
Net change in fund balance
Community Development Block Grant
Total revenues
Total expenditures
Net change in fund balance
Donations and Endowments
Total revenues
Total expenditures
Net change in fund balance
Financing Districts
Total revenues
Total expenditures
Net change in fund balance
Gas Tax
Total revenues
Total expenditures
Net change in fund balance
Habitat and Agricultural Management
Total revenues
Total expenditures
Net change in fund balance
Low and Moderate Income Housing
Total revenues
Total expenditures
Net change in fund balance
Budget
$ 977,000
486,444
490,556
682,000
687,512
(5,512)
194,000
462,904
(268,904)
2,301,862
2,624,263
(322,401)
2,074,752
5,791,540
(3,716,788)
3,317,853
(3,317,853)
806,000
142,049
663,951
Actual
Amounts
(Budgetary
Basis)
$ 1,154,897
351,379
803,518
349,981
476,762
(126,781)
252,120
311,107
(58,987)
2,260,573
2,382,630
(122,057)
2,021,017
3,105,423
(1,084,406)
561,484
3,215
558,269
824,970
107,714
717,256
Variance
Over
(Under)
$ 177,897
(135,065)
312,962
(332,019)
(210,750)
(121,269)
58,120
(151,797)
209,917
(41,289)
(241,633)
200,344
(53,735)
(2,686,117)
2,632,382
561,484
(3,314,638)
3,876,122
18,970
(34,335)
53,305
(Continued)
98
CITY OF CARLSBAD
Combining Schedule of Revenues and Expenditures
Budget and Actual (Budgetary Basis)
Special Revenue Funds (Continued)
Year Ended June 30,2007
Other Special Revenue Funds
Total revenues
Total expenditures
Net change in fund balance
Police Grants and Asset Forfeiture
Total revenues
Total expenditures
Net change in fund balance
Section 8 Rental Assistance
Total revenues
Total expenditures
Net change in fund balance
Totals
Total revenues
Total expenditures
Net change in fund balance
Budget
$ 73,000
52,971
20,029
311,500
372,274
(60,774)
6,136,000
6,146,867
(10,867)
13,556,114
20,084,677
$ (6,528,563)
Actual
Amounts
(Budgetary
Basis)
$ 53,124
41,587
11,537
354,134
322,144
31,990
6,057,962
5,220,618
837,344
13,890,262
12,322,579
$ 1,567,683
Variance
Over
(Under)
$ (19,876)
(11,384)
(8,492)
42,634
(50,130)
92,764
(78,038)
(926,249)
848,211
334,148
(7,762,098)
$ 8,096,246
99
CITY OF CARLSBAD
Combining Schedule of Revenues and Expenditures
Budget and Actual (Budgetary Basis)
Debt Service Funds
Year Ended June 30,2007
Redevelopment Areas
Total revenues
Total expenditures
Net change in fund balance
Budget
$ 2,708,000
1,696,846
$ 1,011,154
Actual
Amounts
(Budgetary
Basis)
$ 2,750,983
1,693,439
$ 1,057,544
Variance
Over
(Under)
$ 42,983
(3,407)
$ 46,390
Combining Schedule of Revenues and Expenditures
Budget and Actual (Budgetary Basis)
Capital Project Funds
Year Ended June 30,2007
Budget
Actual
Amounts
(Budgetary
Basis)
Variance
Favorable
(Unfavorable)
Redevelopment Areas:
Total revenues
Total expenditures
Net change in fund balance
65,300
2,482,471
96,088
1,446,704
30,788
1,035,767
(2.417,171) $ (1,350,616) $1,066,555
100
101
CITY OF CARLSBAD
Combining Statement of Net Assets
Internal Service Funds
June 30, 2007
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts, net
Inventory
Total current assets
Noncurrent assets:
Capital assets:
Machinery and equipment
Less accumulated depreciation
Total capital assets (net of accumulated
depreciation)
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accrued liabilities
Estimated claims payable
Total current liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Fleet Self Insured
Management Benefits
$ 8,205,128 $ 11,655,155
1,698
138,295
8,345,121 11,655,155
14,965,378
(8,153,179)
6,812,199
6,812,199
$ 15,157,320 $ 11,655,155
$ 225,760 $ 2,894,242
75,208
225,760 2,969,450
225,760 2,969,450
6,812,199
8,119,361 8,685,705
Information
Technology
$ 4,174,164
4,174,164
3,166,430
(2,574,661)
591,769
591,769
$ 4,765,933
$ 327,409
327,409
327,409
591,769
3,846,755
Total net assets $ 14,931,560 $ 8,685,705 $ 4,438,524
102
Risk
Management
$ 419,477
419,477
Workers'
Compensation
$ 5,636,887
37,817
5,674,704
Total
$ 30,090,811
39,515
138,295
30,268,621
18,131,808
(10,727,840)
7,403,968
7,403,968
$ 419,477
$ 109,347
542,521
651,868
651,868
$ 5,674,704
$ 9,061
3,073,606
3,082,667
3,082,667
$ 37,672,589
$ 3,565,819
3,691,335
7,257,154
7,257,154
(232,391)
$ (232,391)
2,592,037
$ 2,592,037
7,403,968
23,011,467
$' 30,415,435
103
CITY OF CARLSBAD
Combining Statement of Revenues, Expenses and Changes in Net Assets
Internal Service Funds
For the Year Ended June 30,2007
Fleet Self Insured Information
Operating revenues:
Other charges for services
Miscellaneous
Total operating revenues
Operating expenses:
Depreciation
Fuel and supplies
Claims expense
Small equipment purchases
General and administrative
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Income from property and investments
Intergovernmental
Gain (loss) on sale of property
Total nonoperating revenues (expenses)
Income (loss) before transfers and
capital contributions
Transfers in
Capital contributions
Change in net assets
Total net assets at beginning of year
Management
$ 3,798,945 $
19,558
3,818,503
1,216,054
1,052,850
-
-
1,454,017
3,722,921
95,582
478,775
-
' (31,344)
447,431
543,013
36,821
294,109
873,943
14,057,617
Benefits Technology
8,841,627 $ 4,542,885
66
8,841,627 4,542,951
172,466
-
793,414
534,035
4,029,328
793,414 4,735,829
8,048,213 (192,878)
221,465
43,552
-
265,017
8,048,213 72,139
_
-
8,048,213 72,139
637,492 4,366,385
Total net assets at end of year $ 14,931,560 $ 8,685.705 $ 4,438,524
104
Risk
Management
$ 1,374,019
256,030
1,630,049
-
1,288,137
-
950,798
2,238,935
(608,886)
28,889
-
-
28,889
(579,997)
400,000
(179,997)
(52,394)
$ (232,391)
Workers'
Compensation
$ 2,350,492
55,358
2,405,850
-
1,173,316
-
110,883
1,284,199
1,121,651
258,010
-
-
258,010
1,379,661
-
1,379,661
1,212,376
$ 2,592,037 <
Totals
$ 20,907,968
331,012
21,238,980
1,388,520
1,052,850
3,254,867
534,035
6,545,026
12,775,298
8,463,682
987,139
43,552
(31,344)
999,347
9,463,029
436,821
294,109
10,193,959
20,221,476
6 30,415,435
105
CITY OF CARLSBAD
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30,2007
Cash flows from operating activities:
Receipts from customers and users
Payments to suppliers
Payments to employees
Internal activity - payments to other funds
Claims paid
Other receipts
Net cash provided by (used in) operating activities
Cash flows from noncapital financing activities:
Operating subsidies and transfers to other funds
Cash flows from capital and related financing activities:
Capital contributions
Purchases of capital assets
Net cash provided by (used in) 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
Fleet Self Insured
Management Benefits
$ 3,798,945 $ 8,842,773
(1,399,685)
(723,129) 136,947
(306,500)
(793,414)
19,559
1,389,190 8,186,306
36,821
(2,187,047)
(2,187,047)
478,775
(282,261) 8,186,306
8,487,389 3,468,849
$ 8,205,128 $ 11,655,155
Information
Technology
$ 4,542,885
(2,063,662)
(2,049,778)
(368,830)
66
60,681
43,552
(369,087)
(325,535)
221,465
(43,389)
4,217,553
$ 4,174,164
106
Risk
Management
$ 1,374,020
(1,288,013)
(220,076)
(58,155)
(845,915)
256,029
(782,110)
400,000
-
Workers'
Compensation
$ 2,312,676
(99,551)
(95,901)
(14,465)
(1,296,194)
55,358
861,923
-
Total
$20,871,299
(4,850,911)
(2,951,937)
(747,950)
(2,935,523)
331,012
9,715,990
436,821
43,552
(2,556,134)
(2,512,582)
28,889
(353,221)
772,698
$ 419,477
258,010
1,119,933
4,516,954
$ 5,636,887
987,139
8,627,368
21,463,443
$30,090,811
(Continued)
107
CITY OF CARLSBAD
Combining Statement of Cash Flows
Internal Service Funds (Continued)
For the Year Ended June 30, 2007
Fleet
Management
Self Insured
Benefits
Information
Technology
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities:
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided by operting activities:
Depreciation and amortization
Change in assets and liabilities:
(Increase) decrease in receivables
(Increase) in inventory
Increase (decrease) in accrued liabilities
Increase (decrease) in estimated claims payable
Net cash provided by (used in) operating activities
95,582 $ 8,048,213 $ (192,878)
1,216,054
(250)
57,579
20,225
1,147
139,604
(2,658)
172,466
81,093
$ 1,389,190 $ 8,186,306 $ 60,681
None ash capital financing activities:
Capital assets contributed by other funds $ 294,109 $
m
m
m
Ml
pr
m
m
108
m
m
Risk Workers'
Management Compensation Total
(608,886) $ 1,121,651 $ 8,463,682
1,388,520
-
-
36,275
(209,499)
$ (782,110) 3
(37,816)
-
2,431
(224,343)
i 861,923
(36,919)
57,579
279,628
(436,500)
$ 9,715,990
$ 294,109
109
CITY OF CARLSBAD
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2007
Contractors' and Miscellaneous Deposits
ASSETS
Current assets:
Cash and investments
Receivables:
Other
Prepaid items
Total current assets
LIABILITIES
Accrued liabilities
Deposits held for others
Total liabilities
Assessment Districts
ASSETS
Current assets:
Cash and investments
Receivables:
Taxes
Other
Total current assets
Restricted assets:
Cash and investments
Total restricted assets
Total assets
LIABILITIES
Accrued liabilities
Deposits held for others
Total liabilities
Balance
July 1,2006
$ 18,656,071
10,242
-
$ 18,666,313
$ 84,179
18,582,134
$ 18,666,313
Balance
July 1, 2006
$ 5,703,585
168,283
79,298
5,951,166
6,891,655
6,891,655
$ 12,842,821
$ 113,408
12,729,413
$ 12,842,821
Additions
$ 38,227,342
144,631
544,060
$ 38,916,033
$ 45,367,856
5,206,803
$ 50,574,659
Additions
$ 7,874,768
45,035
82,197
8,002,000
6,395
6,395
$ 8,008,395
$ 369,430
8,015,227
$ 8,384,657
Deductions
$ 39,549,583
154,873
-
$ 39,704,456
$ 44,964,193
6,398,889
$ 51,363,082
Deductions
$ 6,839,687
168,283
83,464
7,091,434
181,776
181,776
$ 7,273,210
$ 341,285
7,308,187
$ 7,649,472
Balance
June 30, 2007
$ 17,333,830
-
544,060
$ 17,877,890
$ 487,842
17,390,048
$ 17,877,890
Balance
June 30, 2007
$ 6,738,666
45,035
78,031
6,861,732
6,716,274
6,716,274
$ 13,578,006
$ 141,553
13,436,453
$ 13,578,006
(Continued)
110
CITY OF CARLSBAD
Combining Statement of Changes in Assets and Liabilities
Agency Funds (Continued)
For the Year Ended June 30,2007
Total Agency Funds
ASSETS
Current assets:
Cash and investments
Receivables:
Taxes
Other
Accrued interest
Total current assets
Restricted assets:
Cash and investments
Total current assets
Balance
July 1,2006
$ 24,359,656
168,283
89,540
-
24,617,479
6,891,655
6,891,655
Additions
$ 46,102,110
45,035
226,828
544,060
46,918,033
6,395
6,395
Deductions
$ 46,389,270
168,283
238,337
-
46,795,890
181,776
181,776
Balance
June 30, 2007
$ 24,072,496
45,035
78,031
544,060
24,739,622
6,716,274
6,716,274
Total assets $ 31.509,134 $ 46,924,428 $ 46,977,666 $ 31,455,896
LIABILITIES
Accrued liabilities
Deposits held for others
Total liabilities
$ 197,587
31,311,547
$ 31,509,134
$ 45,737,286
13,222,030
$ 58,959,316
$ 45,305,478
13,707,076
$ 59,012,554
$ 629,395
30,826,501
$ 31,455,896
111
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements
$15,495,000 -1993 Carlsbad Housing and
Redevelopment Commission Tax Allocation Bonds
Interest Due Interest Due
Fiscal Year
2007-08
2008-09
2009-10
2010-1 1
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
Totals
September 1
$. 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
$ 3,135,411 $
March
295
282
269
1
,058
,851
,989
256,470
242
227
211
,295
,332
,583
195,045
177,589
159,213
139
119
98
75
51
,920
,576
,183
,525
,675
26,500
-
2,828,804
Total
Interest
S 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
5 5,964,215
Principal Due Total Annual
September 1 Debt Service
$ 440,000 $1,041,665
465,000 1,042,909
490,000 1,042,840
515,000
540,000
570,000
1,041,459
1,038,765
1,039,627
600,000 1,038,915
630,000
665,000
700,000
735,000
775,000
815,000
855,000
900,000
950,000
1,000,000
1,036,628
1,037,634
1,036,802
,034,134
,034,496
,032,759
,028,707
,027,200
,028,175
,026,500
$ 11,645,000 $ 17,609,215
$6,595,000 -1997 Hosp Grove Certificates of Participation
(1988 Refunding)
Fiscal Year
Interest Due
August 1
Interest Due
February 1
Total
Interest
Principal Due
August 1
Total Annual
Debt Service
2007-08
2008-09
Totals
33,373
17,273
17,272 $50,645
17,273
$700,000
735,000
750,645
752,273
50,646 $17,272 $67,918 $1,435,000 1,502,918
112
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements (Continued)
$11,080,000 - Encina Financing Joint Powers Authority
Installment Purchase Agreement
•«*
Fiscal Year
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Totals
Interest Due
August 1
$ 156,153
139,353
122,816
105,191
86,228
66,241
45,228
23,190
$ 744,400
Interest Due
February 1
$ 139,353
122,816
105,191
86,228
66,241
45,228
23,191
-
$ 588,248
Total
Interest
$ 295,506
262,169
228,007
191,419
152,469
111,469
68,419
23,190
$ 1,332,648
Principal Due
August 1
$ 640,000
675,000
705,000
740,000
780,000
820,000
860,000
905,000
$ 6,125,000
Total Annual
Debt Service
$ 935,506
937,169
933,007
931,419
932,469
931,469
928,419
928,190
$ 7,457,648
$2,331,489 - Carlsbad Municipal Water District
State Loan for Reclaimed Water Projects
Fiscal Year
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Interest Due
November 30
$ 28,155
24,345
20,425
16,391
12,240
7,969
2,682
Principal Due
November 30
$ 131,372
135,181
139,102
143,136
147,287
151,558
123,222
Total Annual
Debt Service
$ 159,527
159,526
159,527
159,527
159,527
159,527
125,904
Totals $ 112.207 _$_970.858 $ 1.083.065
113
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements (Continued)
$9,694,504 - Carlsbad Municipal Water District
State Water Resources Control Board Loan
Fiscal Year
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
2024-25
Totals
$18,840^13
Interest Due
June 1
$ 232,115 $
221,747
211,119
200,225
189,059
177,614
165,883
153,859
141,534
128,901
115,952
102,679
89,075
75,130
60,837
46,186
31,169
15,777
$ 2,358,861 J>
- Carlsbad Municipal Water District
Principal Due
June 1
414,744
425,113
435,741
446,634
457,800
469,245
480,976
493,000
505,326
517,959
530,908
544,180
557,785
571,729
586,023
600,673
615,690
631,082
9,284,608
Total Annual
Debt Service
$ 646,859
646,860
646,860
646,859
646,859
646,859
646,859
646,859
646,860
646,860
646,860
646,859
646,860
646,859
646,860
646,859
646,859
646,859
$11,643,469
State Water Resources Control Board Loan
Fiscal Year
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
2024-25
2025-26
2026-27
Totals
Interest Due
April 1
$ 326,199 $
413,707
396,100
378,087
359,661
340,810
321,526
301,799
281,617
260,972
239,851
218,245
196,142
173,531
150,400
126,736
102,528
77,764
52,430
26,513
$ 4,744,618 $
Principal Due
April 1
853,048
765,539
783,147
801,159
819,586
838,436
857,720
877,448
897,629
918,275
939,395
961,001
983,104
1,005,716
1,028,847
1,052,511
1,076,718
1,101,483
1,126,817
1,152,734
18.840.313
Total Annual
Debt Service
$ 1,179,247
1,179,246
1,179,247
1,179,246
1,179,247
1,179,246
1,179,246
1,179,247
1,179,246
1,179,247
1,179,246
1,179,246
1,179,246
1,179,247
1,179,247
1,179,247
1,179,246
1,179,247
1,179,247
1,179,247
$23,584,931
114
CITY OF CARLSBAD
Schedule of Annual Debt Service Requirements (Continued)
$18,540,000 - Carlsbad Public Financing Authority
Carlsbad Municipal Golf Course Revenue Bonds
•m
m
«•
m
m
Ml
m
m
«'
»»
m
m
m
m
m
«•
a
Fiscal Year
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
2024-25
2025-26
2026-27
2027-28
2028-29
2029-30
2030-31
2031-32
2032-33
2033-34
2034-35
2035-36
2036-37
Totals
Interest Due
September 1
$ 413,525
413,525
408,025
402,225
396,125
389,625
381,975
373,875
365,212
356,100
346,537
335,287
323,287 •
310,537
299,737
288,437
276,637
262,687
247,950
232,425
216,112
199,012
181,012
162,112
142,200
121,275
99,337
76,275
52,087
26,662
$ 8,099,817
Interest Due
March 1
$ 413,525
408,025
402,225
396,125
389,625
381,975
373,875
365,213
356,100
346,538
335,288
323,288
310,538
299,738
288,438
276,638
262,688
247,950
232,425
216,113
199,013
181,013
162,113
142,200
121,275
99,338
76,275
52,088
26,663
.
$ 7,686,308
Total
Interest
$ 827,050
821,550
810,250
798,350
785,750
771,600
755,850
739,088
721,312
702,638
681,825
658,575
633,825
610,275
588,175
565,075
539,325
510,637
480,375
448,538
415,125
380,025
343,125
304,312
263,475
220,613
175,612
128,363
78,750
26,662
$15,786,125
Principal Due
September 1
$
275,000
290,000
305,000
325,000
340,000
360,000
385,000
405,000
425,000
450,000
480,000
510,000
540,000
565,000
590,000
620,000
655,000
690,000
725,000
760,000
800,000
840,000
885,000
930,000
975,000
1,025,000
1,075,000
1,130,000
1,185,000
$ 18,540,000
Total Annual
Debt Service
$ 827,050
1,096,550
1,100,250
1,103,350
1,110,750
1,111,600
1,115,850
1,124,088
1,126,312
1,127,638
1,131,825
1,138,575
1,143,825
1,150,275
1,153,175
1,155,075
1,159,325
1,165,637
1,170,375
1,173,538
1,175,125
1,180,025
1,183,125
1,189,312
1,193,475
1,195,613
1,200,612
1,203,363
1,208,750
1,211,662
$ 34,326,125
115
CITY OF CARLSBAD
116
Introductory Section
Financial Section
Statistical Section
CITY OF CARLSBAD
Statistical Section
This section of the City of Carlsbad's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the City's overall financial health.
Contents Page
Financial Trends 118
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity 127
These schedules contain information to help the reader assess the City's most
significant local revenue source, property taxes.
Debt Capacity 132
These schedules present information to help the reader assess the affordability of
the City's current levels of outstanding debt, and the City's ability to issue
additional debt in the future.
Demographic and Economic Information 142
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take
place.
Operating Information 146
These schedules contain service and infrastructure data to help the reader
understand how the information in the City's financial report relates to the
services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year. The City implemented GASB
Statement 34 in Fiscal Year 2001-02; schedules presenting government-wide information
include information beginning in that year.
117
CITY OF CARLSBAD
Net Assets by Component
Last Six Fiscal Years
(dollars in thousands)
2002(1)2003 2004 2005 2006 2007
Governmental activities
Invested in capital assets, net of related debt
Restricted for:
Capital assets
Affordable, low and moderate income housing
Habitat and agricultural mitigation management
Other purposes
Unrestricted
Total governmental activities net assets
Business-type activities
Invested in capital assets, net of related debt
Restricted for:
Capital assets
Unrestricted
Total business-type activities net assets
Total government
Invested in capital assets, net of related debt
Restricted for:
Capital assets
Affordable, low and moderate income housing
Habitat and agricultural mitigation management
Other purposes
Unrestricted
Total net assets
$
$
$
$
$
198,808 $
130,545
16,652
5,980
4,260
126,632
482,877 $
143,175 $
96,807
16,261
256,243 $
341,983 $
227,352
16,652
5,980
4,260
142,893
248,219 $
139,760
18,625
6,840
6,019
146,018
565,481 $
165,943 $
96,666
22,509
285,118 $
414,162 $
236,426
18,625
6,840
6,019
168,527
282,728 $
151,395
23,042
6,893
20,451
149,662
634,171 $
185,971 $
102,585
15,072
303,628 $
468,699 $
253,980
23,042
6,893
20,451
164,734
342,232
175,663
25,144
7,528
35,173
152,352
738,092
213,101
100,597
11,670
325,368
555,333
276,260
25,144
7,528
35,173
164,022
$ 604,1 17 $
172,474
27,453
7,042
5,131
197,672
$ 1,013,889 $
$ 234,560 $
107,841
(22,240)
$ 320,161 $
$ 838,677 $
280,315
27,453
7,042
5,131
175,432
645,995 (2)
178,559
30,356
7,670
4,849 (3)
232,701
1,100,130
253,645
47,164 (5)
36,044 (4),(5)
336,853
899,640
225,723
30,356
7,670
4,849
268,745
739.120 $ 850,599 $ 937,799 S 1.063,460 $ 1,334.050 $ 1.436.983
ft
it
Source: City of Carlsbad Comprehensive Annual Financial Reports.
(1) The City first began calculating net asset balances in Fiscal Year 2001-02.
(2) The large increase in 2005-06 reflects the addition of infrastructure assets as per GASB34 requirements.
(3) Net Assets Restricted for Other Purposes increased significantly in Fiscal Years 2003-04 and 2004-05 to set aside funds
for future golf course construction ($15 million in 2003-04 and an additional $15.3 million in 2004-05).
(4) The large decrease in 2005-06 reflects an additional $30.3 million advance received from the General Fund by the Golf Course Fund.
(5) Beginning in Fiscal Year 2006-07, the City began reflecting funds set aside for the replacement of water and wastewater infrastructure as
unrestricted net assets since these funds are not restricted per the GASB.
118
119
CITY OF CARLSBAD
Changes in Net Assets
Last Six Fiscal Years
(dollars in thousands)
Expenses
Governmental activities
General government
Public safety
Community development
Community services
Public works
Interest and fiscal charges on long-term debt
Total governmental activities
Business-type activities
Carlsbad Municipal Water District
Golf course
Wastewater
Solid waste
Total business-type activities
Total government
Program Revenues
Governmental activities
Charges for services:
General government
Public safety
Community development
Community services
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities
Business-type activities
Charges for services:
Carlsbad Municipal Water District
Wastewater
Solid waste
Operating grants and contributions
Capital grants and contributions
Total business-type activities
Total government
Net (Expense)/Revenue:
Governmental activities
Business-type activities
Total government net expense
2002 2003 2004 2005 2006 2007
$
$
$
$
$
$
7,600 $
25,660
10,539
13,270
15,015
1,673
73,757
19,311
98
6,169
213
25,791
99,548 $
582 $
2,957
3,810
1,828
5,440
7,985
26,852
49,454
19,102
5,919
505
577
16,155
42,258
91,712 $
(24,303) $
16,467
(7,836) $
8,518 $
27,748
12,004
14,538
16,826
1,048
80,682
19,261
93
6,104
218
25,676
106,358 $
750 $
3,269
4,261
2,086
6,668
10,139
45,180
72,353
18,276
6,286
868
1,267
19,539
46,236
118,589 $
(8,329) $
20,560
12,231 $
8,604 $
30,894
13,814
15,035 .
19,534
996
88,877
20,950
54
6,891
1,300
29,195
118,072 $
571 $
3,699
4,203
2,102
4,533
14,570
42,215
71,893
18,862
6,203
1,673
1,504
17,377
45,619
117,512 $
(16,984) $
16,424
(560) $
11,353
34,366
14,363
16,033
22,064
1,014
99,193
21,422
25
7,235
1,488
30,170
129,363
926
3,232
5,934
2,292
4,633
12,817
74,414
104,248
18,788
6,378
2,348
508
17,122
45,144
149,392
5,055
14,974
20,029
$ 15,382 $
35,822
14,332
16,790
35,937
1,036
119,299
24,124
2,471
8,265
1,699
36,559
$ 155,858 $
$ 945 $
3,611
4,677
2,437
6,451
12,116
39,286
69,523
19,462
6,801
1,893
718
11,213
40,087
$ 109,610 $
$ (49,776) $
3,528
$ (46,248) $
12,273
38,327
13,860
17,913
37,278
688
120,339
40,383
200
9,590
1,901
52,074
172,413
1,194
4,170
4,158
2,639
5,083
17,597
49,254
84,095
22,186
7,507
1,966
2,296
25,053
59,008
143,103
(36,244)
6,934
(29,310)
(1)
(2)
(3)
(4)
(4)
120
CITY OF CARLSBAD
Changes in Net Assets
Last Six Fiscal Years
(dollars in thousands)
General Revenues and Other Changes in Net Assets
Governmental activities
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Business license taxes
Real property transfer taxes
Vehicle license fees
Income from property and investments
Other general revenues
Transfers
Total governmental activities
Business type activities
Property taxes
Income from property and investments
Other general revenues
Transfers
Total business-type activities
Total government
Change in Net Assets
Governmental activities
Business-type activities
Total government
2002 2003 2004 2005 2006 2007
$ 28,495 $
21,004
8,533
7,495
2,440
1,193
4,675
18,095
762
17
92,709
1,516
7,010
804
(17)
9,313
$ 102,022 $
$ 68,406 $
25,780
$ 94,186 $
31,411 $
25,767
8,387
3,730
2,305
1,127
5,067
13,347
390
(600)
90,931
1,672
5,836
208
600
8,316
99,247 $
82,602 $
28,876
111,478 $
33,949 $
24,578
8,813
5,027
2,872
1,587
4,125
3,124
637
963
85,675
1,842
1,193
14
(963)
2,086
87,761 $
68,691 $
18,510
87,201 $— ^^=
41,479 $
24,759
10,072
5,683
2,890
1,646
2,136
9,910
441
(150)
98,866
2,025
4,162
579
-
6,766
105,632 $
103,921 $
21,740
125,661 $
43,936 $
25,429
11,513
5,429
3,040
1,906
587
11,682
650
(315)
103,857
2,257
3,538
56
315
6,166
110,023 3
54,081 3
9,694
63,775 3
i 49,284
27,445
12,929
5,346
3,056
1,262
608
21,455
700
400
122,485
2,504
7,621
34
(400)
9,759
; 132,244
! 86,241
16,693
i 102,934
Source: City of Carlsbad Comprehensive Annual Financial Report.
Note: Data in this table is available from the date the City implemented GASB 34 (Fiscal Year 2001-02).
(1) In Fiscal Year 2005-06, the City incurred clean-up and repair costs related to the winter storms of 2005.
(2) In Fiscal Year 2006-07, the Water Enterprise settled a lawsuit regarding a landslide at the Marbella Condominiums for $11.3 million
and the Enterprise transferred funds to the Self Insured Benefits Fund for the proposed funding of retiree healthcare costs as
required under GASB 45.
(3) The large increase in Fiscal Year 2006-07 reflects a $6.3 million reimbursement from the Federal Highway Administration for
reimbursement of the 2005 winter storm damage in the City.
(4) The large increase in Fiscal Year 2006-07 reflects the recording of infrastructure assets acquired by the City for development
at Bressi Ranch, the Oaks South, the Ridge and the Greens communities.
121
CITY OF CARLSBAD
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(dollars in thousands)
General Fund
Reserved
Unreserved
Total General Fund
All Other Governmental Funds
Reserved
Unreserved, reported in:
Special revenue funds
Debt service funds (1)
Capital project funds
1998
10,346
31,498
41,844
27,255
15,016
433
87,336
Total all other governmental funds $130,040
1999(1)
12,893
39,221
52,114
30,938
18,639
291
102,038
151,906
2000
14,324
42,179
56,503
27,658
2001
11,746
58,857
70,603
36,030
2002
12,006
76,149
8,155
37,776
20,458
(11,092)
108,866
19,709
(11,586)
131,382
20,542
(10,371)
128,869
$145,890 $ 175,535 $ 176,816
$80,000 f
General Fund Balance
(in thousands)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fiscal Year
Source: City of Carlsbad Comprehensive Annual Financial Report.
(1) Effective July 1, 1999, the City changed the manner in which it accounted for advances from the City to the Redevelopment
Agency, and began recording such advances as a liability on the balance sheet of the funds obligated for the repayment.
(2) A $35 million transfer was made in Fiscal Year 2003 from the General Fund to the General Capital Construction Fund to assist
in the construction of four large projects.
(3) $15 million was reserved at the end of the 2005 Fiscal Year for future advances to the Golf Course Fund.
(4) $30.3 million was reserved at the end of the 2006 Fiscal Year for future advances to the Golf Course Fund.
(5) A $9.7 million transfer was made in Fiscal Year 2007 from the General Fund to the Golf Course Fund to assist
in the construction of the City's new municipal golf course.
122
2003 2004 2005 2006 2007
12,794
58,343 (2)
71,137
27,917
56,141
(3) $
84,058
44,996
54,400
(4)
99,396
45,131
61,494
$ 106,625
56,505 (5)
66,084
$ 122,589
44,265 54,414 49,583 38,000 44,352
21,011
(10,449)
171,227
$ 226,054
29,841
(9,789)
171,194
$ 245,660
30,031
(11,317)
206,711
30,024
(11,681)
221,393
275,008 $ 277,736
32,485
(12,423)
231,071
$ 295,485
123
CITY OF CARLSBAD
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(dollars in thousands)
1998 1999 2000 2001 2002
Revenues:
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Income from property and investments
Contributions from property owners
Donations
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Less: Interdepartmental charges
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Proceeds from the sale of property
Proceeds of advances
Proceeds of debt
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Debt service as percentage of noncapital
expenditures (1,2)
$ 52,985 $
20,296
3,279
7,615
331
8,632
16,610
220
1,514
111,482
6,748
(1,919)
18,631
7,895
6,673
11,437
23,854
1,663
3,144
78,126
33,356
579
9,252
2,069
(2,097)
9,803
$ 43,159 $
57,508 $
17,802
3,827
6,805
936
8,925
45,763
350
1,544
143,460
6,784
(1,934)
21,928
8,636
7,541
12,690
52,107
825
1,645
1 10,222
33,238
589
-
2,603
(2,603)
589
33,827 $
62,268 $
14,094
3,321
5,749
840
10,496
14,733
561
1,183
113,245
7,383
(2,007)
21,799
11,538
9,088
13,823
39,543
821
1,660
103,648
9,597
-
332
15,533
(15,533)
332
9,929 $
70,147 $
14,286
3,409
6,427
889
20,385
15,982
312
2,260
134,097
9,022
(2,148)
23,627
9,352
11,571
14,402
22,067
1,029
1,814
90,736
43,361
-
91
9,544
(9,651)
(16)
43,345 $
71,528
14,267
1,998
7,751
947
18,700
11,251
210
2,386
129,038
8,415
(2,284)
25,598
10,316
12,449
15,404
37,503
1,133
1,694
110,228
18,810
-
6
11,833
(11,816)
23
18,833
3.
Source: City of Carlsbad Comprehensive Annual Financial Report.
(1) Noncapital expenditures are total expenditures less capital outlay (to the extent capitalized for the Government-wide
Statement of Net Assets) and expenditures for capitalized assets included within the functional expenditure categories.
(2) Information not available for years prior to GASB 34 implementation.
124
2003 2004 2005 2006 2007
$ 74,156 $
19,775
2,043
10,059
923
14,802
14,547
149
2,349
138,803
8,805
(2,815)
26,798
11,799
13,374
18,177
26,410
1,672
1,628
105,848
79,533 $
22,506
2,329
9,899
1,092
3,902
23,682
141
1,543
144,627
9,745
(2,735)
30,799
13,644
13,915
18,045
26,406
1,214
1,466
112,499
84,065 $
24,245
3,393
10,433
1,084
10,741
49,446
164
1,107
184,678
12,113
(2,700)
33,819
14,319
14,744
18,737
46,420
1,040
1,501
139,993
; 94,862 5
13,027
2,504
11,038
1,178
10,387
25,365
130
2,077
160,568
16,311
(2,639)
36,365
14,300
15,637
20,327
47,032
1,037
1,599
149,969
1 101,196
25,097
2,094
10,937
1,387
22,270
10,311
173
950
174,415
18,013
(2,151)
39,832
13,998
16,667
22,481
30,765
1,091
1,333
142,029
32,955 32,128 44,685 10,599 32,386
1,364
47,846
(48,581)
8,729
(8,329)
10,228
(10,228)
11,685
(12,334)
9,723
(9,760)
(735)400 (649)1,327
32,220 $32,528 $ 44,685 $ 9.950 $ 33,713
4.17%3.10%2.71%2.41%2.01%
125
CITY OF CARLSBAD
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(in thousands)
Real
Fiscal Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Change
1998-2007
60,000 -i
50,000
40,000 -
30,000
20,000 -
10,000
Property Sales and
Tax * Use Taxes
$ 26,249 $ 14,817
26,688 17,129
27,335 19,493
30,656 21,197
28,512 21,661
31,412 25,543
33,949 25,571
35,650 (1) 26,331
43,936 27,294
49,284 27,289
88% 84%
Total
Transient
Occupancy Franchise
Taxes Taxes
$ 6,046 $ 1,714
7,010 1,954
8,333 2,592
9,269 3,916
Business Property
License Transfer
Taxes Taxes Misc. Taxes
$ 1,604 $
1,738 1
1,864
2,300 1
8,533 (4) 7,495 (5) 2,440 1
(3) 8,387 3,730
8,814 5,027
10,072 5,683
11,513 5,429
12,929 5,346
114% 212%
General Governmental
(in thousands)
2,305 1
2,872 (2) 1
2,890 1
3,040 1
3,056 1
836 $ 1,719
,081 1,908
993 1,658
,095 1,714
,193 1,694
,127 1,652
,587 1,713
,646 1,793
,906 1,744
,262 (6) 2,030
91% 51% 18%
Tax Revenues
J^*
-m. • 1
— *-^^
x *— ***—*
1998 1999 2000 2001 2002 2003 2004
Fiscal Year
2005 2006 2007
Total Tax
Revenue
$ 52,985
57,508
62,268
70,147
71,528
74,156
79,533
84,065
94,862
101,196
91%
• Property Tax
B Sales and Use
Taxes
— — Transient
Occupancy Taxes-*- Other
Source: City of Carlsbad.
* Includes Vehicle License Fees (VLF) in lieu, property tax increment, low/moderate housing, set aside taxes and CFD#1 special taxes.
(1) Vehicle License Fee revenue began decreasing in 2004-05 because the City began receiving property taxes in lieu of a portion of the VLF.
(2) This reflects the results from hiring a company to assist in the identification of unlicensed businesses, and the recovery of
non-reported and under-reported business license taxes.
(3) The City modified the methodology used in accruing sales tax revenue for the year, in accordance with Generally Accepted
Accounting Principles (GAAP).
(4) The drop in transient occupancy tax was the result of the impacts from September 11, 2001 on tourism.
(5) This was the result of higher natural gas prices paid by consumers in calendar year 2001.
(6) Reflects the beginning of the downturn in the housing market.
126
CITY OF CARLSBAD
Water and Wastewater Rates
Last Ten Fiscal Years
Water
Fiscal Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Monthly Delivery
Charge
$9.25
9.25
9.25
9.25
9.25
9.25
9.25
9.25
9.25
9.75
Base Price Per
Unit (1)
$1.70
1.70
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.68
Wastewater
Monthly Base
Rate
$15.00
15.00
15.00
13.00
13.00
13.00
13.00
13.00
13.50
14.65
Source: City of Carlsbad.
Note: Rates shown are for a 5/8" meter, which is the standard household meter size.
(1) One unit of water equals 748 gallons.
127
CITY OF CARLSBAD
Assessed Value of Taxable Property
Last Ten Fiscal Years
(dollars in millions)
Fiscal Residential
Year Property
1998 $
1999
2000
2001
2002
2003
2004
2005
2006
2007
4,723
5,315
6,418
7,367
8,543
9,612
10,700
11,984
13,619
15,650
Commercial
Property
$ 766
954
1,036
1,192
1,310
1,413
1,516
1,749
1,962
2,181
Exemptions
Industrial and Other
Property Taxable
Property (1)
$ 631 $ 304
713 410
854 583
1,282 649
1,341 657
1,469 516
1,231 856
1,266 742
1,398 729
1,660 569
v . Total PropertyNet Assessed Tax RevenueValuation
$ 6,424 $
7,392
8,891
10,490
11,851
13,010
14,303
15,741
17,708
20,060
12.410
14.196
16.762
19.658
22.286
24.974
26.960
33.330 (4)
38.041
43.651
Total Direct
Tax Rate (3)
0.193%
0.192%
0.189%
0.187%
0.188%
0.192%
0.188%
0.212%
0.215%
0.218%
Taxable Assessed Value
20,000 -
15,000 -
10,000 -
5,000 -
(in millions)
^m
_ . 1 1
_ • i
1998
|_| 1EI it-, It-, L
1999 2000 2001 2002 2003 2004
Fiscal Year
II 1ILLL
2005 2006 2007
D Residential Property
• Commercial Property
D Industrial Property
Source: County of San Diego, California Auditor and Controller.
Notes: Information about estimated actual value of property is not available; the assessed value is based on the most
recent sales value and includes secured property only.
(1) Other property includes farm, rural, institutional, recreational, state secured property, unsecured property, personal property
and fixtures.
(2) The total direct tax rate was calculated by dividing the total property tax revenue by the total taxable value.
(3) Property tax revenues do not include special assessments, redevelopment tax increment or community facilities
district revenues.
(4) In Fiscal Year 2004-05, there was an increase in the property taxes received, offset by a decrease in Vehicle License Fees (VLF).
128
CITY OF CARLSBAD
Principal Property Taxpayers
Current Year and Nine Years Ago
2007 1998
Taxpayer
Callaway Golf Company
Aviara Resort Associates LLC
KSL La Costa Resort Corp.
Grey stone Homes Inc.
Continuing Life Communities LLC
CPG Carlsbad Holdings LLC
Legoland California, Inc.
Pulte Home Corp.
H.G. Fenton Company
Borders, Inc.
San Diego Gas & Electric Co.
Brehm-Aviara III Development
Gemological Institute of America
Craig Realty Group Carlsbad LLC
Prentiss Properties Acquisition
Air Products & Chemicals, Inc.
Daniels Cablevision, Inc.
Total
Net assessed valuation
Taxable Assessed
Value
$ 145,211,900
129,594,602
129,428,459
114,916,672
113,158,766
107,453,677
103,301,253
86,731,338
82,896,284
79,216,564
-
-
-
-
-
-
-
$ 1,091,909,515
$ 20,059,893,358
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City Net
Assessed Value
0.72%
0.65%
0.65%
0.57%
0.56%
0.54%
0.51%
0.43%
0.41%
0.39%
-
-
-
-
-
-
-
5.43%
Taxable Assessed
Value
$ 117,984,057
270,622,828
111,589,980
-
-
-
-
-
-
-
277,633,029
46,942,229
44,959,035
44,811,766
43,587,368
38,740,613
37,076,188
$ 1,033,947,093
$ 6,424,230,646
Rank
3
2
4
1
5
6
7
8
9
10
Percentage of
Total City Net
Assessed Value
1.84%
4.21%
1.74%
-
-
-
-
-
-
-
4.32%
0.73%
0.70%
0.70%
0.68%
0.60%
0.58%
16.10%
Source: County of San Diego Office of the Auditor and Controller, County Assessor, and MuniServices, LLC
129
CITY OF CARLSBAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Total Current
Levy (1)
15,885,090
18,159,348
21,153,690
24,597,515
27,351,054
30,178,314
33,117,599
44,057,622
49,806,112
51,854,596
(3)
Total Current
Collections (2)
15,061,614
17,303,313
20,176,885
23,572,005
26,360,056
29,018,421
31,753,020
42,251,018
47,723,226
49,219,793
% of Levy
Collected
94.80%
95.30%
95.40%
95.80%
96.40%
96.20%
95.90%
95.90%
95.80%
94.90%
Property Tax Levies & Collections
Last Ten Fiscal Years
ID Total Current Levy (1)
• Total Current
"P
Source: County of San Diego Office of the Auditor and Controller.
(1) Includes real property transfer taxes, homeowner exemptions and Proposition 172 public safety sales taxes.
(2) Total Current Collections includes prior year delinquencies and adjustments; delinquency collections by year are not available.
(3) Starting in Fiscal Year 2004-05, the City received additional property tax payments in lieu of vehicle license fees.
130
131
CITY OF CARLSBAD
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(dollars in thousands except per capita)
Fiscal Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Governmental Activities
Bonds / Special
Debt
$ 14,740
14,460
14,170
13,865
13,540
13,200
12,840
12,460
12,065
11,645
Certificates of
Participation
$ 6,595
6,075
5,570
5,055
4,515
3,950
3,360
2,740
2,105
1,435
Capital Leases
$ 2,399
633
904
888
791
179
79
7
1
-
Loans Payable
$ 875
750
620
480
330
170
-
-
-
-
800
600
400
200
0
Outstanding Debt per Capita
illllllllll
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
m
M
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) During Fiscal Year 2006-07, Carlsbad Municipal Golf Course Revenue Bonds were issued for $18.5 million.
(2) The State Water Resources Control Board issued low interest loans for the Carlsbad Water Recycling Facility
for $9.7 million during Fiscal Year 2005-06, and $18.8 million in Fiscal Year 2006-07.
(3) Percentage of personal income is calculated using personal income for the prior year.
Sources: SANDAG, California Department of Finance, American Community Survey.
P
132 i
Business-Type Activities
Installment
Accrued Bonds / Special Certificates of Purchase
Assessments Debt (1) Participation Agreements
$ 1,985 - $
1,252
951
789
621
443
257
-
-
18,540
6,360 !
5,405
4,410
3,370
2,295
1,175
-
-
-
-
E 10,675
10,250
9,810
9,350
8,870
8,375
7,855
7,305
6,730
6,125
Loan Capital
Payable (2) Leases
S 1,999 $
1,897
1,792
1,705
1,574
1,460
1,343
1,223
10,592
29,096 699
Total
$ 45,628
40,722
38,227
35,502
32,536
28,952
25,734
23,735
31,493
67,540
Percentage
of Personal
Income (3)
n/a
1.03%
0.88%
0.75%
0.66%
0.58%
0.52%
0.45%
0.57%
1.18%
Per Capita
$ 655.57
558.60
488.54
426.49
369.22
319.41
277.24
250.12
319.27
666.49
133
134
CITY OF CARLSBAD
Schedule of Direct and Overlapping Bonded Debt
Current Fiscal Year
Fiscal Year 2006-07 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Palomar Community College District
Carlsbad Unified School District
Carlsbad Unified School District CFD No. 1
Oceanside Unified School District
Vista Unified School District
Encinitas Union School District
San Marcos Unified School District School Facility Improvement District
San Marcos Unified School District CFD No. 4
San Marcos Unified School District CFD No. 5
San Dieguito Union HS District CFD No. 94-1
San Dieguito Union HS District CFD No. 94-2
San Dieguito Union HS District CFD No. 95-2
San Dieguito Union High School District Combined CFD
Palomar Pomerado Hospital District
Olivenhain Municipal Water District, Assess. Dist. No. 96-1
City of Carlsbad CFD No. 3,1.A. No. 1
City of Carlsbad 1915 Act Bonds
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
DIRECT AND OVERLAPPING GENERAL FUND DEBT;
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego City Superintendent of Schools General Fund Obligations
Mira Costa Community College District Certificates of Participation
Palomar Community College District General Fund Obligations
Carlsbad Unified School District General Fund Obligations
San Marcos Unified School District General Fund Obligations
Encinitas Union School District Certificates of Participation
Other School District Certificates of Participation
City of Carlsbad General Fund Obligations
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
COMBINED TOTAL DEBT
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and
non-bonded capital lease obligations.
Ratios to Fiscal Year 2006-07 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 0.99%
Ratios to Adjusted Assessed Valuation:
Combined Direct Debt ($1,435,000) 0.01%
Combined Total Debt 1.85%
Source: MuniServices, LLC and County of San Diego Office of the Auditor and Controller
$ 20,379,917,876
320,024,518
$ 20,059,893,358
Total Debt
06/30/07
$ 359,115,000
160,000,000
18,428,400
7,750,000
120,695,000
111,744,882
20,684,827
17,278,019
24,850,000
25,180,000
272,623
19,938,100
821,938
48,440,000
73,815,000
18,375,000
11,490,000
71,275,000
$ 1,110,153,789
$ 351,215,000
1,343,747,916
18,042,500
4,505,000
8,065,000
55,345,000
5,675,000
1,165,000
9,180,000
1,435,000
$ 1,798,375,416
$ 2,908,529,205
Percent
Applicable (1)
1.25%
3.00%
97.64%
100.00%
0.01%
0.19%
31.20%
38.00%
24.40%
100.00%
100.00%
98.08%
12.03%
30.40%
2.16%
22.17%
100.00%
100.00%
6.43%
6.43%
6.43%
27.00%
3.00%
97.64%
32.79%
31.20%
Various
100.00%
City's Share of
Debt 6/30/07
$ 4,488,938
4,792,000
17,992,753
7,750,000
6,035
216,785
6,453,459
6,565,820
6,064,146
25,180,000
272,623
19,555,288
98,920
14,725,276
1,595,880
4,073,370
11,490,000
71,275,000
$ 202,596,293
$ 22,576,100
86,376,116
1,159,772
1,216,575
241,547
54,036,644
1,860,946
363,468
15,060
1,435,000
$ 169,281,228
$ 371,877,521
135
CITY OF CARLSBAD
Direct and Overlapping Debt
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
OVERLAPPING TAX AND ASSESSMENT DEBT;
San Diego County Water Authority
Metropolitan Water District
Palomar Community College District
Carlsbad Unified School District
Carlsbad Unified School District Lease Tax Obligations
Carlsbad Unified School District CFD No. 1
Oceanside Unified School District
Vista Unified School District
Encinitas Union School District
Encinitas Union School District Lease Tax Obligations
San Marcos Unified School District School Fac. Improv. Dist.
Tri-City Hospital District
Palomar Pomerado Hospital District
Leucadia County Water District and I.D. No. 1
Vallecitos Water District and I.D. No. 6
San Marcos Unified School District CFD No. 4
San Marcos Unified School District CFD No. 5
San Dieguito Union HS District CFD No. 1
San Dieguito Union HS District CFD No. 94-1
San Dieguito Union HS District CFD No. 94-2
San Dieguito Union HS District CFD No. 95-2
San Dieguito Union HS District combined CFD
Olivenhain Municipal Water District, I.D. No. 1
Olivenhain Municipal Water District, Assess. Dist. No. 96-1
City of Carlsbad CFD No. 3,1.A. No. 1
City of Carlsbad 1915 Act Bonds
DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego City Superintendent of Schools General Fund Obligations
Mira Costa Community College District Certificates of Participation
Palomar Community College District General Fund Obligations
Carlsbad Unified School District General Fund Obligations
San Marcos Unified School District General Fund Obligations
San Marcos Unified School District Certificates of Participation
Encinitas Union School District Certificates of Participation
Other School District Certificates of Participation
City of Carlsbad General Fund Obligations
1998
0.068
0.696
4.009
1.076
1.778
1.032
0.226
1.023
0.012
0.004
0.017
0.683
4.702
3.958
2.935
0.017
0.061
1.733
0.103
0.268
0.026
1.027
1999
0.054
0.691
3.502
0.729
1.638
0.941
0.174
0.785
1.752
2.581
0.011
0.611
6.467
3.584
2.569
0.016
0.246
1.514
0.075
0.212
0.028
0.822
2000
0.040
0.611
2.909
0.186
1.315
0.874
0.131
0.682
1.457
1.319
0.005
0.553
4.908
3.524
2.149
0.014
0.207
1.460
0.050
0.166
0.021
0.626
Source: California Municipal Statistics, Inc. & MuniServices, LLC
136
2001 2002 2003 2004 2005 2006 2007
$ 0.028 $
0.545
-
2.472
0.187
1.073
_
0.756
0.138
0.615
-
-
1.216
0.029
2.051
0.032
-
0.465
-
3.959
$ 3.016 $
1.801
0.012
0.176
-
5.493
-
0.031
0.063
0.018
0.482
0.017 $
0.481
-
2.099
0.122
0.909
0.005
0.678
0.050
0.629
-
-
1.059
0.025
1.816
0.028
-
0.400
-
3.287
2.701 $
1.470
0.011
0.145
-
4.843
-
0.015
0.078
0.022
0.381
0.008 $
0.398
-
1.832
0.070
0.789
0.004
0.621
0.020
0.544
-
-
1.909
0.023
1.628
0.025
-
0.357
-
2.809
2.281 $
3.951
0.010
0.121
-
4.392
-
-
0.045
0.021
0.304
$
0.368
-
1.594
0.033
0.678
0.005
0.530
-
0.524
-
-
1.886
0.020
1.456
0.023
0.973
0.314
3.145
1.881 $
5.528
0.009
0.098
-
3.961
0.143
-
0.037
0.018
0.235
$
0.319
-
1.342
-
0.578
0.005
0.471
-
0.448
-
-
1.677
0.018
1.298
0.020
0.884
0.279
-
4.848
1.855 $
5.008
0.051
0.085
-
3.557
0.122
-
0.032
0.015
0.174
$
0.269
-
1.102
-
0.477
0.007
0.389
-
0.383
0.100
0.187
1.457
0.016
1.128
0.006
0.832
0.242
0.649
4.143
1.385 $
4.376
0.044
0.072
0.013
3.106
0.106
-
0.024
0.001
0.119
0.224
0.239
0.897
-
0.386
0.011
0.322
-
0.327
0.080
0.302
1.255
0.014
0.975
0.005
0.734
0.203
0.573
3.553
1.125
4.306
0.058
0.061
0.012
2.694
0.093
-
0.018
0.001
0.072
137
CITY OF CARLSBAD
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
1998 1999 2000 2001 2002
Net assessed valuation
Debt limit (25% x 15%)
Less amount of debt applicable to limit:
Bonded debt
Certificates of participation
Obligations under capital leases
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
6,424,231 $ 7,391,939 $ 8,890,683 $ 10,490,116 $ 11,850,679
240,909 277,198 333,401 393,380 444,400
14,740
6,595
2,399
23,734
$ 217,175
14,460
6,075
633
21,168
$ 256,030
14,170
5,570
904
20,644
$ 312,757
13,865
5,055
888
19,808
$ 373,572
13,540
4,515
791
18,846
$ 425,554
9.85%7.64%6.19%
Percent of Debt Applicable to the Legal Debt Limit
12.00%
8.00%
4.00%
0.00%
5.04%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
4.24%
Note: Under state finance law, the City's outstanding general obligation debt should not exceed 15 percent (as adjusted by 25% per the law) of total
assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for
repaying general obligation bonds.
(1) $18.5 million in golf course bonds were issued in Fiscal Year 2006-07. If the golf course net operating revenue is not sufficient to cover the debt
service payment, the General Fund will make the debt service payment.
138
2003 2004 2005 2006
13,009,712 $ 14,303,050 $ 15,741,122 $ 17,707,928
487,864 536,364 590,292 664,047
2007
20,059,893
752,246
13,200
3,950
179
17,329
S 470,53~
12,840
3,360
79
16,279
520,085
12,460
2,740
7_
15,207
S 575,08~
12,065
2,105
1_
14,171
649,876
30,185 (1)
1,435
31,620
S 720,626
3.55%3,04%2.58%2.13%4.20%
-mi 139
CITY OF CARLSBAD
Fledged-Revenue Coverage
Last Ten Fiscal Years
Wastewater Revenue Bonds
Debt Service
Fiscal
Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Gross
Revenues (1)
$ 7,531,548
7,897,329
8,421,638
11,089,995
9,438,807
9,342,266
6,854,001
8,557,183
8,306,783
11,325,931
Less: Expenses
(2)
$ 3,037,634
3,762,721
3,792,799
4,352,912
4,707,348
4,584,265
5,284,357
5,156,663
6,009,282
7,168,463
Net Available
Revenue
$ 4,493,914
4,134,608
4,628,839
6,737,083
4,731,459
4,758,001
1,569,644
3,400,520
2,297,501
4,157,468
Principal
$ 405,000
425,000
440,000
460,000
480,000
495,000
520,000
550,000
575,000
605,000
Interest
$ 513,179
. 517,672
500,371
482,027
462,162
441,199
416,256
389,581
361,394
328,944
Coverage
4.89
4.39
4.92
7.15
5.02
5.08
1.68
3.62
2.45
4.45
Source: City of Carlsbad
(1) Include operating and non-operating revenues.
(2) Include operating and non-operating expenses, excluding depreciation.
(3) Include recycled water operating and non-operating revenues and fees.
(4) Include recycled water operating and non-operating expenses, excluding depreciation.
(5) Fiscal Year 2006-07 is the first year loan payments were made.
140
Recycled Water Loans
Debt Service
Gross Less: Expenses Net Available
Revenues (3) (4) Revenue
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
4,187,043
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2,205,573
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
1,981,470
Principal (5)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
537,565
Interest Coverage
n/a
n/a .
n/a
n/a
n/a
n/a
n/a
n/a
n/a
268,821
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2.46
141
CITY OF CARLSBAD
Demographic and Economic Statistics
Last Ten Fiscal Years
•I
«•
Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Total
Population
69,600
72,900
78,247
83,242
88,120
90,643
92,823
94,896
98,641
101,337
% of S.D.
County
Population
2.58%
2.65%
2.78%
2.91%
3.02%
3.05%
3.08%
3.12%
3.22%
3.27%
% Change from
Previous Year
3.73%
4.74%
7.33%
6.38%
5.86%
2.86%
2.41%
2.23%
3.95%
2.73%
Median Age
n/a
n/a
38.9
38.9
39.4
39.7
40.2
40.6
40.9
41.2
Avg. Household
Size
n/a
n/a
2.46
2.46
2.48
2.48
2.51
2.48
2.51
2.53
*m
*
m
m
m
Sources: Population data is from the California Department of Finance and SANDAG.
Household and demographic characteristics estimates are from SANDAG Current Estimates, the U.S. Census Bureau
Census 2000 and American Community Survey.
Income estimates are derived from data from the Bureau of Economic Analysis, U.S. Census Bureau Census 2000.
Current population estimates are from SANDAG.
Unemployment rate estimates are from the California Employment Development Department.
(1) Values in inflation-adjusted 2005 dollars.
(2) Per Capita Personal Income and Unemployment Rate are calculated on a calendar year basis, and therefore not yet
available for 2007.
(3) Personal Income is the total aggregate income that correlates to the total population.
PR
M
m
m
m
m
142
Educational Attainment
% High School
Graduate
n/a
n/a
93.10%
n/a
n/a
n/a
n/a
95.00%
95.40%
n/a
% Bachelor's
Degree or
Higher
n/a
n/a
45.60%
n/a
n/a
n/a
n/a
46.90%
53.00%
n/a
Personal Income
(1,3) (millions)
$ 4,291
4,614
5,028
5,261
5,476
5,545
5,842
6,017
6,338
n/a
Per Capita
Personal Income
d)(2)
$ 61,659
63,297
64,259
63,205
62,138
61,178
62,937
63,403
64,252
n/a
Unemployment
Rate (2)
n/a
n/a
2.50%
2.70%
3.40%
3.40%
3.10%
2.80%
2.60%
n/a
143
2007
Employees Rank
% of Total City
Employment
2,000
900
727
535
391
300
300
270
260
250
250
1
2
3
4
5
6
7
8
9
10
10
3.60%
1.62%
1.31%
0.96%
0.70%
0.54%
0.54%
0.49%
0.47%
0.45%
0.45%
CITY OF CARLSBAD
Principal Employers
Current Year and Nine Years Ago
Employer
Manufacturing
Callaway Golf
Invitrogen Corp.
Taylor Made-Adidas Golf Co.
Acushnet Golf
Zimmer Dental
Hoehn Motors
Upper Deck
Modern Postcard
Beckman Coulter
Syntron Bioresearch Inc.
Schumacher
Nellcor Puritan Bennett Corp.
West Coast Composite
Cobra Golf, Inc., II
Ashworth, Inc.
Palomar Products
Asymtek
Non-Manufacturing
Four Seasons Resort Aviara
Carlsbad Unified School District
City of Carlsbad
ViaSat, Inc.
Gemological Institute of America
La Costa Resort & Spa
24-Hour Fitness, USA
San Diego Gas & Electric
LEGOLAND California
FedEx Express
Jenny Craig
Plaza Camino Real
Carlsbad Company Stores
Car Country Carlsbad
SOMC Group, Inc.
Subtotal Employees
Total Employees
Source: Carlsbad Business License Data (2007) and Carlsbad Chamber of Commerce (1998).
(1) Total Employee count is not available for 1998.
(2) These employers are now tracked by individual store versus combined by mall name.
1998
Employees Rank
2,400 1
450 6
500 5
280
1,500
700
675
394
300
280
10
2
3
4
7
1,000
950
834
811
660
501
350
325
251
250
250
n/a
a/a
in/a
n/a
12,365
55,538
1
2
3
4
5
6
7
8
9
10
10
1.80%
1.71%
1.50%
1.46%
1.19%
0.90%
0.63%
0.59%
0.45%
0.45%
0.45%
22.26%
900
750
750
350
466
950
3,000
750
550
380
n/a (I)
3
5
6
10
8
2
1
4
7
9
(2)
(2)
(2)
144
145
CITY OF CARLSBAD
Authorized Full and 3/4 Time City Government Employees by Major Service Area
Last Ten Fiscal Years
1998 1999 2000 2001
Major Service Area
General Government
City Council
City Manager
Communications
City Treasurer
City Attorney
Administration
Records Management
Information Technology
Finance
Risk Management
Human Resources and Worker's Comp
Public Safety
Police
Fire
Community Development
Community Development Administration
Building Inspection
Economic Development
Geographic Information
Planning
Housing and Redevelopment
Community Services
Library
Cultural Arts
Recreation & Senior Programs
Public Works
Administration & Environmental Programs
Engineering Services
General Services
Maintenance & Operations
Full and 3/4 Time Authorized Employees
Increase/(decrease) over prior year
Source: City of Carlsbad Operating Budget
Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick-leave).
A 3/4 time employee is scheduled to work 1,560 hours per year (including vacation and sick-leave).
2002
1.00
8.00
0.75
5.00
3.60
6.40
19.00
1.00
8.00
122.00
79.00
4.75
13.00
1.00
1.00
24.00
10.00
32.50
3.00
21.50
7.00
34.00
50.75
76.75
533.00
7.50
1.00
9.00
0.75
5.00
4.00
13.00
19.00
2.00
8.00
128.00
79.00
4.75
13.00
1.00
2.00
24.00
10.00
32.25
3.00
21.50
7.25
37.00
47.25
81.25
553.00
20.00
1.00
6.75
0.75
6.00
2.00
8.00
14.00
26.00
2.00
9.00
134.00
79.75
4.75
13.00
1.00
2.00
24.00
10.00
40.75
4.00
22.00
3.00
49.00
51.75
70.00
584.50
31.50
1.00
6.00
1.00
0.75
6.00
2.00
8.00
15.00
27.00
2.00
9.00
138.00 .
79.75
3.75
13.00
1.00
2.00
24.00
10.00
41.75
4.00
27.00
3.00
48.70
55.75
70.30
599.75
15.25
1.00
6.00
1.00
0.75
7.00
2.00
8.00
15.00
27.00
2.00
10.00
143.00
79.75
3.00
13.00
1.00
2.00
25.00
10.00
46.25
4.75
30.00
3.50
58.70
57.25
70.30
627.25
27.50
m
m
1
m
P
tt
1ft
I
M
iy
a
1
i
m
m
*
M
•
146
fl
«•
2003 2004 2005 2006 2007
1.00
6.00
2.75
0.75
7.00
2.00
8.00
16.00
28.00
2.00
10.00
150.00
79.75
3.00
13.00
1.00
2.00
25.00
10.00
48.00
4.75
33.00
6.00
57.00
57.75
73.00
646.75
19.50
1.00
6.00
2.75
0.75
7.00
2.00
8.00
16.00
28.00
2.00
10.00
148.00
79.75
3.00
13.00
1.00
2.00
25.00
10.00
48.00
5.00
33.00
6.00
57.00
58.75
73.00
646.00
(0.75)
1.00
6.00
2.75
0.75
7.00
2.00
8.00
16.00
28.00
2.00
10.00
148.00
79.75
3.00
13.00
1.00
2.00
25.00
10.00
48.00
5.00
32.50
14.20
51.10
82.85
47.10
646.00
-
1.00
6.00
2.75
0.75
7.00
2.00
8.00
16.00
27.00
2.00
10.00
151.00
79.75
4.00
13.00
1.00
2.00
24.00
10.00
48.00
5.00
32.50
14.20
51.60
91.95
49.50
660.00
14.00
1.00
7.00
3.75
0.75
7.00
2.00
8.00
19.00
28.00
2.00
10.00
157.00
87.75
5.00
13.00
1.00
3.00
27.00
10.00
48.00
5.00
30.50
18.00
54.00
95.25
47.00
690.00
30.00
147
CITY OF CARLSBAD
Operating Indicators by Function/Program
Last Three Fiscal Years
2005 2006 2007
General Government
Number of recruitments processed
Number of new hires and promotions
Business licenses processed
Public Safety
Police
Calls for service
Average priority one response (minutes)
Cases
Fire
Emergency responses
Fires extinguished
Community Development
Affordable housing units completed
Financial assistance to affordable housing projects
Residential building permits issued
Code enforcement inspections
Building inspections conducted
Final inspections (dwelling units)
Planning applications considered
Community Services
Library - total material circulation
Library - patron visits
Arts - number of events
Arts - attendance of events
Recreation - youth sports participants
Recreation - adult sports participants
Recreation - enrichment classes held
Recreation - enrichment class enrollees
Recreation - special events participants
Public Works
Streets
Road miles - overlay or slurry seal
Trees trimmed
Carlsbad Municipal Water District
Potable water deliveries - acre feet
Average daily consumption (gal/single family)
Water customers
Wastewater
Sewage pumped (millions of gallons per day)
Annual flow (millions of gallons)
Wastewater customers
67
50
8,507
74,546
6.8
10,059
6,705
220
439
$1,600,000
1,745
5,600
53,267
1,702
197
1,282,974
731,326
65
50,000
1,100
5,100
1,650
16,700
2,000
28.20
1,767
19,172
363
20,281
7.36
2,688
16,454
83
135
8,955
79,855
6.3
10,605
7,245
218
110
$1,440,000
943
5,600
51,000
1,440
162
1,237,311
898,511
62
65,000
1,150
5,150
1,650
16,700
3,500
32.30
1,800
19,885
398
23,099
6.62
2,416
18,754
78
119
8,926
95,002
6.0
8,857
7,861
234
110
$2,132,000
472
6,800
33,523
765
200
1,286,654
685,782
58
64,000
1,150
5,200
1,650
16,700
6,500
23.80
1,811
21,500
393
25,791
6.81
2,486
20,858
Source: City of Carlsbad
148
CITY OF CARLSBAD
Capital Asset Statistics
Last Three Fiscal Years
2005 2006 2007
Community Services
Number of parks
Acres of parks
Acres of open opace
Miles of trails
Number of pools
Number of community centers
Number of libraries
Number of materials in library collections
Public Safety
Fire Protection
Number of stations
Number of fire trucks
Number of ambulances
Number of other fire vehicles
30
295
625
13
1
2
2
373,998
6
11
4
11
30
295
625
27
1
2
2
356,385
6
11
4
11
31
348
625
35
1
2
2
371,885
6
11
5
13
Police Protection
Number of patrol and other vehicles
Number of motorcycles
Public Works
Carlsbad Municipal Water District
Miles of lines and mains
85
13
431
82
13
434
90
12
442
Wastewater
Miles of sewers 232 254 265
Streets
Miles of streets
Number of street lights
Number of traffic signals
295
6,445
138
308
6,786
152
332
7,444
155
Source: City of Carlsbad
* Includes new replacement vehicles, and excludes vehicles classified as out-of-service at June 30th of that
particular fiscal year.
149
150