HomeMy WebLinkAbout; ; 2011-2012 CAFR; 2012-06-30Fiscal Year Ended June 30, 2012
Comprehensive Annual Financial Report
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30, 2012
1635 Faraday Avenue, Carlsbad, CA 92008
Website: www.carlsbadca.gov
Prepared by the Finance Department
Cover design by: Chantal Speas
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CITY OF CARLSBAD
Comprehensive Annual Financial Report Year Ended June 30, 2012
TABLE OF CONTENTS
Page INTRODUCTORY SECTION:
City Council’s 2012 Strategic Goals 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 Position 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 Position 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 45 Statement of Net Position – Proprietary Funds 48
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds 52
Statement of Cash Flows – Proprietary Funds 54 Statement of Net Position – Fiduciary Funds 58 Statement of Changes in Net Position – Fiduciary Funds 59
Notes to the Financial Statements 60 Supplementary Information
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 100
Combining Schedule of Revenues and Expenditures – Budget and Actual (Budgetary Basis) – Special Revenue Funds 104 Combining Schedule of Revenue and Expenditures – Budget and Actual
(Budgetary Basis) – Debt Service Funds and Capital Project Funds 106 Combining Statement of Net Position – Internal Service Funds 108 Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds 110 Combining Statement of Cash Flows – Internal Service Funds 112 Combining Statement of Changes in Assets and Liabilities – Agency Funds 116 Combining Statement of Fiduciary Net Position by Project Area – Private Purpose
Trust Funds 118 Combining Statement of Changes in Fiduciary Net Position by Project Area –
Private Purpose Trust Funds 119 Schedule of Annual Debt Service Requirements 120
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CITY OF CARLSBAD
Comprehensive Annual Financial Report Year Ended June 30, 2012
TABLE OF CONTENTS (CONTINUED)
Page STATISTICAL SECTION:
Financial Trends: Net Position by Component – Last Ten Fiscal Years 124
Changes in Net Position – Last Ten Fiscal Years 126 Fund Balances of Governmental Funds – Last Ten Fiscal Years 130
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 132 General Governmental Tax Revenues by Source – Last Ten Fiscal Years 134
Revenue Capacity: Water and Wastewater Rates – Last Ten Fiscal Years 135
Assessed Value of Taxable Property – Last Ten Fiscal Years 136 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years 137
Principal Property Taxpayers – Current Year and Nine Years Ago 138 Property Tax Levies and Collections – Last Ten Fiscal Years 139
Debt Capacity: Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 140
Schedule of Direct and Overlapping Bonded Debt – Current Fiscal Year 142 Direct and Overlapping Debt – Last Ten Fiscal Years 144
Legal Debt Margin Information – Last Ten Fiscal Years 146 Pledged-Revenue Coverage – Last Ten Fiscal Years 148
Demographic and Economic Information: Demographic and Economic Statistics – Last Ten Fiscal Years 150
Principal Employers – Current Year and Nine Years Ago 152 Operating Information:
Authorized Full and ¾ Time City Government Employees by Major Service Area – Last Ten Fiscal Years 154
Operating Indicators by Function/Program – Last Eight Fiscal Years 156 Capital Asset Statistics – Last Eight Fiscal Years 158
Introductory Section Introductory Section
Introductory Section
Introductory Section
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City of Carlsbad provides exceptional, top quality services on a daily basis by proactively listening,
engaging and responding to its residents.
Balanced community development: Be a city that connects community, place and spirit, through
balanced and economically sustainable land uses.
Resident connection and partnership: Be 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.
Economic Development: Strengthen the city’s strong and diverse economy, supporting local
businesses, attracting new businesses in targeted industries and solidifying the city’s position as a
key employment hub.
Environmental management: An environmentally sensitive community by focusing on
conservation, storm water, sewage 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 city resources effectively.
Learning, culture and arts: Promote and support continuous learning, cultural opportunities and
the arts within the community and the city organization.
Parks, open spaces and 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.
Safe community: Maintain a safe and secure community through collaborative partnerships.
Public safety providers support high standards, deliver protection of life and property and
encourage community involvement in prevention and preparedness efforts.
Transportation and circulation: Provide and support a safe and efficient transportation system
that moves people, services and goods throughout the city.
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.
Carlsbad City Council
2012
Strategic Goals
City Council continues to clarify and pursue the vision of
Carlsbad that reflects the pride and quality of life.
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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 39 square miles and has a population of 107,674, with an expected built out population of 117,000 residents.
Industries in the city include a major regional shopping center; a specialty outlet center; 34 hotels offering over 3,600 rooms for tourist lodging; over
20 auto dealers; high technology, multimedia and biomedical businesses; electronics, golf apparel and equipment manufacturers; several business and
light industry parks; and numerous land developers building single and multi-family housing in a variety of community settings.
This report includes financial statements for the city, the Housing Authority of the City of Carlsbad, the Carlsbad Public Improvement Corporation, the
former 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:
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
In addition to the full range of
services normally associated with a municipality, Carlsbad offers
programs to help local residents and businesses. Low-income families in
Carlsbad receive assistance from the city’s Housing Authority and older
residents can take advantage of Carlsbad’s senior citizen programs.
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 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
City of Carlsbad Community Vision
Small town feel, beach community character and connectedness Enhance Carlsbad’s defining attributes - its small town feel and beach community character. Build on the city’s culture of civic engagement, volunteerism and philanthropy. Open space and the natural environment - Prioritize protection and enhancement of
open space and the natural environment. Support and protect Carlsbad’s unique open space and agricultural heritage. Access to recreation and active, healthy lifestyles - Promote active lifestyles and community health by furthering access to trails, parks, beaches and other recreation opportunities.
The local economy, business diversity and tourism - Strengthen the city’s strong and diverse economy and its position as an employment hub in north San Diego County. Promote business diversity, increased specialty retail and dining opportunities, and
Carlsbad’s tourism. Walking, biking, public transportation and connectivity - Increase travel options through enhanced walking, bicycling and public transportation systems. Enhance mobility through increased connectivity and intelligent transportation management. Sustainability - Build on the city’s sustainability initiatives to emerge as a leader in green development and sustainability. Pursue public/private partnerships, particularly on sustainable water, energy, recycling and foods.
History, the arts and cultural resources - Emphasize the arts by promoting a
multitude of events and productions year round. Cutting edge venues to host world class performances, and celebrate Carlsbad’s cultural heritage in dedicated facilities and programs.
High quality education and community services - Support quality, comprehensive education and lifelong learning opportunities, provide housing and community services for a changing population, and maintain a high standard for citywide public safety.
Neighborhood revitalization, community design and livability - Revitalize neighborhoods and enhance citywide community design and livability. Promote a greater mix of uses citywide, more activities along the coastline and link density to public transportation. Revitalize the downtown Village as a community focal point and a unique and memorable center for visitors, and rejuvenate the historic Barrio neighborhood.
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S a n F r a n c i s c o
L o s A n g e l e s
S a n D i e g o
N e v a d a
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C a l i f o r n i a C a l i f o r n i a
P a c i f i c O c e a n P a c i f i c O c e a n
A r i z o n a C a r l s b a d C a r l s b a d
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the year. Once the vision and priority projects are developed, city staff develops operational goals and work plans based on the City Council’s direction. These goals and work plans provide the basis for the
development of the annual budget. The City Council adopts the formal budget for all funds at the beginning of each fiscal year and may amend those budgets throughout the year as necessary. Budgetary control for the city is maintained through its accounting systems. 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 Economic Profile
The University of San Diego (USD) monitors the health of the San Diego economy through its Index of Leading Economic Indicators. The USD index tracks six variables to evaluate growth trends in the San Diego economy: unemployment filings, help wanted advertising, local stock prices, consumer confidence, building permits and the strength of the national economy. The index shows a continued three-year upward
trend, as the Index has improved by almost 4 percent from June of last year. Carlsbad’s economy is tied
closely to that of the San Diego region. The stabilizing economy is providing a boost
to our General Fund revenues, although continued weakness in the housing market
continues to put a drag on property tax revenue, which is expected to decrease by 0.6
percent in Fiscal Year 2012-13. Overall, General Fund revenues are expected to increase by $1.5 million, or 1.3
percent in Fiscal Year 2012-13, as revenues from sales taxes and transient occupancy taxes are projected to continue a strong growth trend.
Development related revenues have stagnated in the past year, as the city matures and growth declines. From 1992 to 2008, commercial and industrial development in Carlsbad averaged approximately 1.1 million square feet per year. As opportunities for new development diminish, commercial and industrial
development is tapering off, falling to an average of approximately 270,000 square feet per year over the next five fiscal years. Large industrial commercial developments in the next five years include Bressi
Ranch, Carlsbad Raceway and Palomar Forum, Dos Colinas Retirement Community, and the Floral Trade
Center. Commercial office space vacancy has witnessed a decline over the past two years, falling from over 30 percent in the last quarter of 2009 to just over 23 percent in the first quarter of 2012. Industrial vacancy remained stable at around 15 percent.
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Housing prices in Carlsbad continued their
downward trend during the last year. Data on single family residence (SFR) sales from
DataQuick indicates that the median sales price fell
to approximately $580,000 in the first quarter of 2012, a decrease of over 8 percent compared to the
same quarter in 2011. Only one zip code, 92011,
showed an increase in this time period. The total assessed values in the city are close to $24 billion, a decrease of less than one percent compared to the prior fiscal year (Fiscal Year
2010-11). According to recent growth projections prepared for the city, Carlsbad will add 903 residential units over the next five fiscal years.
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. A new Lowe’s is expected to open in summer 2013.
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 Park Hyatt 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 additions being the Sheraton Carlsbad Resort and Spa, Homewood Suites and Hampton Inn. A new Hilton will open in summer 2012 at Ponto Beach.
The City of Carlsbad opened a municipal golf course in the summer of 2007 which has further enhanced 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 is a destination spot for golfers and non-golfers alike.
Overall, for Fiscal Year 2012-13, General Fund revenue is projected to increase by 1.3 percent from the previous year’s estimates. Most sources of tax revenue are expected to increase slightly in Fiscal Year
2012-13, although property taxes are projected to decrease by less than 1 percent. Sales tax is expected to
increase by a little more than 4 percent and transient occupancy tax (TOT) revenues are projected to increase by over 7 percent due, in part, to the addition of the Ponto Hilton. Home values, as discussed earlier, continue to decline, and we expect assessed values to decrease slightly again in Fiscal Year 2012-
13. Development related revenue items have been decreased for Fiscal Year 2012-13, in anticipation of slower building activity. More information on all of the city’s revenues and programs can be found in the later sections of the document.
State of California – Governor Jerry Brown continues to face the ongoing budgetary crisis
that has plagued California since the economic downturn. The State of California has been in a severe fiscal crisis for a number of years and has relied on a number of dubious
strategies to balance its budget, including reliance on one-time revenues, borrowing from various state funds, and raiding city, county and special district funds.
In June, the Governor signed the budget for Fiscal Year 2012-13. This budget addressed a $15.7 billion
budget deficit by increases in projected revenues, decreases in expenditures, and some budget closing measures, such as extensions to loan repayments by the state. The primary source of additional revenues is
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2005 2006 2007 2008 2009 2010 2011 2012Thousands Fiscal Year
Median SFR Home Prices
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from temporary taxes and is expected to generate approximately $5.8 billion in the coming fiscal year. However, these projections assume the passage of Proposition 30 in the November 2012 election. If this
measure does not pass, automatic expenditure cuts of almost $6 billion will be triggered, reducing funding to California schools and universities by $5.9 billion. Expenditure reductions of $8 billion came primarily from health and human services ($1.8 billion), education ($2.3 billion), and other sources ($3.9 billion). Other sources include reductions in redevelopment assets, reduced expenditures for the judiciary, and
reduced employee compensation.
In June 2011, the state legislature passed ABx1 26 and ABx1 27, dissolving Redevelopment Agencies (RDA) in the State of California. In December 2011, the California Supreme Court upheld ABx1 26 and invalidated ABx1 27, which upheld the California legislature’s decision to dissolve RDAs and eliminated alternative options allowed under ABx1 27. Local RDAs were required to transfer all assets and
obligations to successor agencies, effective February 1, 2012, as the wind down process begins. AB 1484 was passed in June 2012 in order to provide further guidance in the unwinding of redevelopment agencies.
Under this legislation, former redevelopment agencies and the related low and moderate income housing funds will begin distributing unencumbered funds to affected taxing entities. 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 this 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 city annually calculates the amounts needed to pay for the various projects as well as the anticipated operating budget impacts from those projects. In this
way, the city can anticipate the effects of development from both a capital and an operating perspective. In order to ensure that the city has the funds to replace these facilities as they age, an Infrastructure
Replacement Fund was created. With this fund, the city sets aside money on an annual basis for major maintenance and replacement of its infrastructure. Much of the city’s infrastructure is relatively new; thus, the city is just now beginning to experience the impact of major maintenance requirements. By setting aside funds now, the citizens of Carlsbad can be assured that the proper maintenance and replacement, as
needed, will be performed on streets, parks, and the many facilities for which the city is responsible. For Fiscal Year 2012-13, the City Council approved allocating 6.5 percent of General Fund revenues, or $7.5
million, to the Infrastructure Replacement Fund.
While the City of Carlsbad has a long-term history of maintaining sufficient reserves, the City Council took formal action during Fiscal Year 2007-08 to adopt a reserve policy, which was revised in Fiscal Year 2010-
11. The General Fund Reserve Policy sets a minimum reserve of 30 percent of the General Fund expenditures and also establishes a target reserve of between 40 percent to 50 percent. This reserve can be
used by the City Council for emergencies or one-time purposes.
In addition to these steps, the city also prepares a ten-year financial forecast for the General Fund each year, in order to understand the fiscal impact of actions taken today on the city’s future. The current
forecast assumes limited growth in residential and commercial development over the next decade and captures the expected revenue impacts from major projects that are expected to be completed during the forecast period. The operating costs of new city facilities supported by the General Fund, such as Alga
Norte Park, are also captured in the ten-year forecast. The forecast also assumes that the Carlsbad Crossings Golf Course will require an ongoing subsidy from the General Fund and, while this subsidy is expected to decrease over time, it is no longer treated as a loan.
Economic conditions at the national, state, and local level are expected to continue improving at a modest rate and to provide a boost to most of our major sources of revenue. Home sales, however, are not
expected to increase in the next fiscal year and values will continue to subdue property tax receipts. Overall, General Fund revenues are expected to cover ongoing costs in the coming decade, as depicted on the following graph:
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The forecast assumes that General Fund revenues will increase by less than 2 percent in Fiscal Year 2012-
13, as improving economic conditions buoy revenues from sales taxes and transient occupancy taxes (TOT). To project the expenditures, all known changes in personnel and maintenance and operations costs are accounted for. However, the effects of future negotiations with employee bargaining units are not
contemplated in the current ten-year forecast. The city is currently undertaking an evaluation of services in order to pursue a managed competition process, known as Best Value Services. The financial impact of a change in service delivery is also not considered in the ten-year forecast.
The forecast assumes that the city’s cost for employee health care will increase by 5 percent, annually, over the life of the forecast. Pension plan costs will increase in Fiscal Year 2012-13 by approximately 3.25
percent for miscellaneous employees and 3.5 percent for safety employees, due primarily to investment
losses sustained by CalPERS in Fiscal Year 2008-09 and updated actuarial assumptions. The forecast also assumes that $1.8 million is set aside in Fiscal Year 2012-13 to stabilize future CalPERS increases or to
address unfunded liabilities in both the safety and miscellaneous retirement plans. The forecast further assumes that no new positions are authorized, except those that may be related to the operating costs of new city facilities supported by the General Fund. Negotiated salary step increases and cost of living increases
between 0.5 percent and 2 percent have been added to personnel costs. The contribution from the General
Fund to the Infrastructure Replacement Fund is forecasted to remain at 6.5 percent of General Fund revenues. Finally, the forecast includes estimated operating costs for all capital projects in the timeframes
shown in the Capital Improvement Program (CIP). As indicated in the above graph, the General Fund is balanced for Fiscal Year 2012-13 and modest
surpluses are anticipated after that. However, Carlsbad still faces economic challenges from a fluctuating
economy, continued fixed costs increases, and concerns over the impact that budget decisions at the state and federal levels could have on the city’s financial situation. While the ten-year forecast employs
conservative estimates, these modest surpluses could evaporate if the economy stumbles. The ability to anticipate changes in revenue sources and to balance those resources against the costs related to ongoing and future programs, services, and infrastructure requirements is critical to the financial health
of the city. The city relies on the General Fund forecast to effectively manage fiscal resources and map a sustainable and responsible path for attaining the goals of the community.
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2009-102010-112011-122012-132013-142014-152015-162016-172017-182018-192019-202020-21$ Millions Fiscal Year
General Fund Revenues and Expenditures
REVENUES
TOTAL EXPENDITURES
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Cash Management
The City Treasurer, an elected official, is charged with the design of an effective cash management and investment program consistent with legal requirements and the city’s Investment Policy. The city annually adopts a comprehensive investment policy specifying investment objectives, such as 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, 2012 was 2.128. The average return
realized on the pooled investments declined from 2.06 percent in Fiscal Year 2010-11 to 1.65 percent for Fiscal Year 2011-12, and it is expected to further decline this fiscal year. 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 gain of
0.79 percent for Fiscal Year 2011-12. According to the City
Treasurer, “It is likely that a downward trend will continue in Fiscal Year 2012-13 as
investments with higher interest rates are called
and reinvested at today’s
lower market rates.”
Major Initiatives and Projects In the city’s Fiscal Year 2012-13 Capital Budget, several significant projects are in design or under
construction over the next few years. Some of the notable capital projects include the following:
Alga Norte Park and Aquatic Center – The park site is located on 32 acres in the Southeast Quadrant along Poinsettia Lane between El
Camino Real and Alicante Road. Planned amenities include lighted ball fields, soccer fields, picnic areas, tot lots, a skate park, a dog park,
restrooms, parking facilities, an aquatic center featuring a 56-meter competition pool, a 25-meter 12-lane instruction pool, a warm water
therapy pool, and a water play area for toddlers. The swimming pool complex was one of the projects approved by the voters through
Proposition C in 2002. Construction is expected to be complete by the end of Calendar Year 2013. The Capital Improvement Budget programs
$50.4 million for this project.
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Leo Carrillo Phase III – Phase III includes the renovation of additional buildings, construction of additional restrooms and an arboretum area. The total cost of the remainder of Phase III is
approximately $1.9 million and design is expected to begin in Fiscal Year 2014-15.
Relocation of Fire Station No. 3 – Fire Station No. 3 is currently
located at the corner of Chestnut and Catalina. As the city grows eastward, relocation of this station is needed to help ensure the six
minute response time. The site for the new station is in Robertson Ranch. Total cost is projected at $9.2 million.
Maintenance and Operations Center – The city has planned the construction of a Maintenance and Operations Center (M&O Center) to physically bring together the maintenance functions to a single
facility. The M&O Center will be located on the available property adjacent to the Fleet Maintenance/Public Safety Center. It is anticipated that the M&O Center will include offices and
support space, workshops, outside storage, warehouse and parking to accommodate the city’s maintenance personnel. This combined group of maintenance functions includes segments of the
Utilities, Transportation, Parks and Recreation, and Property and Environmental Management departments. The cost of the project is approximately $28.1 million.
Facilities Maintenance – As the city facilities begin to age, maintenance and repair projects are needed to keep them in good condition. Four projects have currently been identified at a total cost of
about $700,000. Included are roof renovation and replacement projects, City Hall electrical upgrades, and exterior waterproofing at the Safety Center.
Traffic Signal Program – In keeping with the City Council’s goal of improving traffic flow, the
Fiscal Year 2012-13 CIP includes additional funding of $2.5 million for the Traffic Signal Program. This project will upgrade traffic signal hardware and software in conjunction with the creation of a
communications network that will be used to manage traffic signal operations and thereby improve the flow of traffic.
Avenida Encinas Widening – Widening to full secondary arterial standards along Avenida Encinas from Palomar Airport Road to just south of Embarcadero Lane is scheduled for design in Fiscal Year
2012-13. The CIP includes $5.4 million to fund this project.
El Camino Real Widening – There are a number of projects that are scheduled over the next five years that will focus on the widening of El Camino Real to prime arterial roadway standards. The
projects include widening from Cassia Road to Camino Vida Roble, Arenal Road to La Costa Avenue, Lisa Street to Crestview Drive and Tamarack to Chestnut. The total estimated costs for these projects are $19.7 million.
Pavement Management – Carlsbad’s local streets are maintained on a regular cycle to ensure a good
riding surface and to extend the life of the street. Part of the maintenance program is the sealing and overlay of the existing street surface. In addition, any problem areas are addressed as they are
identified. The Fiscal Year 2012-13 CIP has $3.7 million budgeted for this program.
Magnolia and Valley Sidewalk and Street Construction – Planned construction includes street
widening and sidewalk improvements along portions of Valley Street and Magnolia Avenue in the vicinity of Carlsbad High School, Valley Middle School, and Magnolia Elementary School. The total cost is estimated at $2 million.
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Vista/Carlsbad Interceptor & Agua Hedionda Lift Station Replacement – This project consists of a set of individual projects that will ultimately construct a parallel
sewer interceptor system to accommodate existing and future sewer flows from the cities of Vista and Carlsbad. The individual projects include a main in Jefferson Street,
replacement of the Agua Hedionda Lift Station, and a main from the lift station to the Encina Wastewater Facility. The overall total cost estimate for this set of projects
totals $55.1 million, of which $17.3 million is to be funded by the City of Carlsbad, with the remainder of $37.8 million to be funded by the City of Vista.
Wastewater – Other major wastewater facilities scheduled for construction or replacement within the next five years include:
Buena Interceptor Sewer Improvements
Foxes Landing Lift Station and Forcemain
Home Plant Lift Station Replacement and Forcemain
Terramar Sewer Replacement
Vancouver Sewer Extension
Water/Recycled Water Lines – Major water/recycled water facilities scheduled for construction or replacement within the next five years include:
College Boulevard – Cannon to Badger Lane
Maerkle Floating Cover Replacement and Pump Station Improvements
Robertson Ranch Water Transmission Main
Tri-Agencies Water Transmission Pipeline Replacement
Reservoir Repair/Maintenance Program
Recycled Water Service to South Carlsbad 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, 2011. This was the
fourteenth 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. The city strives to develop a
Comprehensive Annual Financial Report which will continue to meet the Certificate of Achievement Program’s requirements, and this report will be submitted 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, City Manager 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,
Chuck McBride Finance Director
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CITY OF CARLSBAD
ELECTED CITY OFFICIALS
Matt Hall, Mayor
Ann J. Kulchin, Mayor Pro Tem Mark Packard, Council Member Keith Blackburn, Council Member
Farrah Douglas, Council Member Lorraine M. Wood, City Clerk
Jim Comstock, City Treasurer
LEADERSHIP TEAM
John Coates, Interim City Manager
Vacant, Assistant City Manager Cynthia Haas, Deputy City Manager
Ron Ball, City Attorney Heather Pizzuto, Library Director
Gary Barberio, Community & Economic Development Director Debbie Fountain, Housing & Neighborhood Services Director
David Hauser, Property & Environmental Management Director Tina Steffan, Interim Information Technology Director
Julie Clark, Human Resources Director Chuck McBride, Finance Director
Skip Hammann, Transportation Director Wendy Chambers, Interim Utilities Director
Gary Morrison, Police Chief Kevin Crawford, Fire Chief
CHAIRPERSONS, COMMISSIONS AND BOARDS
Vacant Arts Commission Linda Petrucci Beach Preservation Committee Timothy Stripe Carlsbad Tourism Business Improvement District Board
Vacant Historic Preservation Commission Bobbie Smith Housing Commission
Bob Benson Library Board of Trustees
Vacant Parks and Recreation Commission Vacant Planning Commission Jack Nelson Senior Commission
Vacant Serra Cooperative Library System Advisory Board Vacant Traffic Safety Commission Vacant Underground Utility Advisory Committee
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Traffic Safety
Commission
Underground
Utility Advisory
Committee
ArtsCommission
HistoricPreservationCommission
Library BoardofTrustees
Serra CooperativeLibrary SystemAdvisory Board
Parks & RecCommission
SeniorCommission
BeachPreservationCommittee
Housing
Commission
Housing &
Redevelopment
Commission
Planning
Commission
Carlsbad Tourism
B.I.D. Advisory
Board
ELECTORATE
City Manager
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Revised Feb. 2011
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City of CarlsbadOrganization Chart
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Financial Section Financial Section
Financial SectionFinancial Section
17
18
Management’s Discussion and Analysis
Management of the City of Carlsbad (“city”) provides readers this overview and analysis of the financial activities of the city for the fiscal year ended June 30, 2012. The 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. The information presented here should be
considered in conjunction with the additional information furnished in the letter of transmittal.
Overview of the Financial Statements 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 providing 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 greater detail. 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, included is a section
with combining fund statements that provides financial information about the 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 content of each of the statements.
Management’s Discussion and
Analysis
Basic Financial Statements
Required Supplementary Information
Required Components of the City of Carlsbad’s Annual Financial Report
Notes to the Financial
Statements
Government-
wide Financial Statements
Fund 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 Position 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 position and how it has changed. Net position
– the difference between the city’s assets and liabilities – is one way to measure the city’s financial health, or position. Over time, increases or decreases in the city’s net position is 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 internal services 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 cost of certain services it provides. The city’s water, wastewater, solid waste and municipal golf course operations 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 future 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.
Enterprise funds are used to report activities that provide business-type services, generally to external
customers – such as water, wastewater, solid waste and golf services. In both the Government-wide Financial Statements and the Fund Financial Statements, these funds are shown under business-type
activities.
20
Internal service funds are used to report activities that provide services and supplies for the city’s other programs and activities – such as fleet, workers’ compensation, 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 Net Position. These activities are excluded 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 Position
The city’s combined net position as of June 30, 2012, as shown below, was $1.734 billion. The city’s net position
increased by $41 million during the current fiscal year. Over $39 million of the increase was in current and other assets which was the result of revenues exceeding expenditures by over $24.5 million (excluding the extraordinary
gain due to dissolving the former Redevelopment Agency). The decrease in capital assets was the result of current year depreciation expenses exceeding the addition of new capital assets. The large decrease in long-term debt
outstanding was created from dissolving the former Redevelopment Agency (the bonds payable have been transferred to the Successor Agency Trust Fund). Other liabilities decreased due to the application of GASB 65
which required the city to write off the issuance costs associated with the golf course bonds as a prior period adjustment (see footnote 21 for additional information).
As noted earlier, over time net position may serve as a useful indicator of the city’s financial position. For the City
of Carlsbad, assets currently exceed liabilities by $1.74 billion at the close of the most recent fiscal year.
A large portion of the city’s net position (63 percent) reflects its net investment in capital assets (i.e., land, buildings, machinery, equipment, and infrastructure), less any related debt used to acquire those assets that is 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 would not be used to pay for these liabilities.
Total
Percentage
Change
2011 2012 2011 2012 2011 2012 2011-12
Current and other assets $538.4 $567.2 $95.4 $105.6 $633.8 $672.8 6.2%
Capital assets 784.6 781.2 358.2 352.0 1,142.8 1,133.2 -0.8%
Total assets 1,323.0 1,348.4 453.6 457.6 1,776.6 1,806.0 1.7%
Long-term debt outstanding 10.3 0.2 45.7 40.2 56.0 40.4 -27.9%
Other liabilities 16.4 16.8 10.0 13.0 26.4 29.8 12.9%
Total liabilities 26.7 17.0 55.7 53.2 82.4 70.2 -14.8%
Net position
Net investment in
capital assets 774.3 780.7 314.7 311.4 1,089.0 1,092.1 0.3%
Restricted 237.2 242.2 45.0 45.5 282.2 287.7 1.9%
Unrestricted 284.8 308.5 38.3 47.5 323.1 356.0 10.2%
Total net position $1,296.3 $1,331.4 $398.0 $404.4 $1,694.3 $1,735.8 2.4%
Total
CITY OF CARLSBAD'S NET POSITION
(in millions of dollars)
Governmental
Activities
Business-Type
Activities
21
An additional portion of the city’s net position (17 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($356 million) may be
used to meet the government’s ongoing obligations to citizens and creditors. Just over 45 percent of the $356 million in unrestricted governmental activities net position is attributable to the General Fund. The net investment in capital assets for the city increased by $3.1 million during Fiscal Year 2011-12 due primarily to the receipt of developer donated assets during the year (infrastructure assets in La Costa Ridge and
Rancho Carrillo), and the construction of several large road projects including Poinsettia Lane and the extension of Faraday Avenue. A portion of business-type net position represents the city’s municipal golf course. At the end of
Fiscal Year 2011-12, there is a large deficit in unrestricted net position for the Golf Course Fund. This is the result of the General Fund advancing money to the Golf Course Fund for the construction of the course and partially subsidizing the operations of the course.
Changes in Net Position
Total
Percentage
Change
2011 2012 2011 2012 2011 2012 2011-12
Revenues
Program revenues
Charges for services $17.1 $14.7 $49.6 $55.9 $66.7 $70.6 5.8%
Operating grants and contributions 12.0 11.8 1.3 1.2 13.3 13.0 -2.3%
Capital grants and contributions 13.6 15.5 5.6 4.6 19.2 20.1 4.7%
General revenues
Property taxes 54.0 51.5 2.8 2.7 56.8 54.2 -4.6%
Sales and use taxes 25.7 28.1 - - 25.7 28.1 9.3%
Other taxes 21.1 21.4 - - 21.1 21.4 1.4%
Income from property and investments 8.4 6.1 2.1 2.0 10.5 8.1 -22.9%
Other 0.3 0.4 3.6 0.1 3.9 0.5 -87.2%
Extraordinary gain - 20.5 - - - 20.5 100.0%
Total revenues 152.2 170.0 65.0 66.5 217.2 236.5 8.9%
Expenses
General government 16.9 16.7 - - 16.9 16.7 -1.2%
Public safety 45.0 45.6 - - 45.0 45.6 1.3%
Community development 17.0 17.7 - - 17.0 17.7 4.1%
Community services 25.1 25.4 - - 25.1 25.4 1.2%
Public works 25.8 28.4 - - 25.8 28.4 10.1%
Interest on long-term debt 0.5 0.3 - - 0.5 0.3 -40.0%
Carlsbad Municipal Water District - - 35.0 36.0 35.0 36.0 2.9%
Golf course - - 11.5 11.2 11.5 11.2 -2.6%
Wastewater - - 11.7 11.3 11.7 11.3 -3.4%
Solid waste - - 2.6 2.9 2.6 2.9 11.5%
Total expenses 130.3 134.1 60.8 61.4 191.1 195.5 2.3%
Excess (deficiency) before transfers 21.9 35.9 4.2 5.1 26.1 41.0 57.1%
Transfers (0.1) (1.8) 0.1 1.8 - -
Increase (decrease) in net position 21.8 34.1 4.3 6.9 26.1 41.0 57.1%
Beginning position (as restated)1,274.5 1,297.3 393.6 397.5 1,668.1 1,694.8 1.6%
Ending net position $1,296.3 $1,331.4 $397.9 $404.4 $1,694.2 $1,735.8 2.5%
Activities Activities Total
CITY OF CARLSBAD'S CHANGES IN NET POSITION
(in millions of dollars)
Governmental Business-type
22
The condensed summary of activities shows that net position increased by $41 million during the year. This increase occurs when spending is less than the revenues received. There were several reasons for the increase in net
position: an emphasis on efficiencies resulting in a reduction in expenses/expenditures; a citywide restructuring initiative that either eliminated or unfunded 14.75 positions; $17.2 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; the dissolving of the city’s Redevelopment Agency creating an extraordinary gain of $20.5
million; and the donation of infrastructure assets from developers.
Approximately 67 percent of the revenues of the city’s
governmental funds (excluding extraordinary
gains) are generated through taxes collected (property,
sales, transient occupancy tax, etc.), and just over 84
percent 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.
The continuous recovery
from the great recession has resulted in increases in our
leading revenues: sales taxes and transient occupancy
taxes. Property taxes tend to be a lagging revenue,
meaning they don’t rebound as quickly as the leading
revenues. This reason, as well as the dissolution of the
city’s Redevelopment Agency (a reduction in tax
increment within governmental funds), explains the decrease in property tax revenues. The Federal Reserve, in an effort to stimulate the economy, continues to lower interest rates to historic lows, affecting the city’s income from
property and investments. Development throughout the city continues to increase from prior years, resulting in increased developer impact fees (capital contributions), developer contributed assets (capital contributions) and
permitted activity (charges for services). Another factor affecting charges for services was water and wastewater rate increases that went into effect in January 2012. The extraordinary gain was created by dissolving the city’s
Redevelopment Agency.
The total cost of all programs and services was just over $195.5 million in Fiscal Year 2011-12. This was a $4.4 million, or 2.3 percent, increase over Fiscal Year 2010-11 costs. The increase in governmental activity expenses
(public works in particular) was driven by expensing a project that was previously accounted for in construction in progress. The project will go through a redesign if it is built in the future, and the costs to date represented the
previous design of the project. Higher purchased water costs and solid waste interdepartmental costs (an updated cost allocation plan reflecting the city’s new realignment done in Fiscal Year 2010-11) created the slight increase for
the year in business-type activities.
Property Taxes
(22%)
Charges for
Services (30%)
Federal Aid (3%)
Sales Tax (12%)
Other Taxes (4%)
Income from Property and
Investments (4%)
Contributions
from Property Owners (9%)
Other (9%)
City of Carlsbad
Sources of Revenue for Fiscal Year 2011-12$236.5 Million
TOT (5%)TOT (5%)
State Aid (2%)
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General Government (9 percent)
This segment of the city is
divided into three major groups: the Policy and Leadership group,
the Internal Services group and non-departmental charges. The
Policy and Leadership group encompasses all elected
officials, the chief executive offices for the city, the
Communications team and Records Management. The
Internal Services group includes Finance, Human Resources,
Information Technology, Risk Management, and Property and
Environmental Management. Also included in General
Government are any Council directed special projects.
Public Safety (23 percent) 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.
Community and Economic Development (9 percent) The mission of Community and Economic Development is helping people build a strong community by
guiding and facilitating high quality projects, preserving the environment, providing for, and maintaining a strong economic base and strengthening neighborhoods through partnerships and collaboration to improve or
enhance the quality of life and sense of community within Carlsbad. Community Development encompasses Land Use Planning, Economic Development, the Hiring Center, Housing and Neighborhood Services, and
Building Inspection.
Community Services (13 percent) Community Services consists of the Libraries, Cultural Arts, Parks and Recreation, and Senior Citizen
programs. These programs are provided to a wide range of people, and enhance their education and cultural development.
Public Works (15 percent)
Public Works is responsible for building and maintaining all of the infrastructure assets of the city. This
service area includes Transportation, Storm Drains, Medians, Street Trees, the Buena Vista Channel, Street Lighting, and Traffic Sign and Signal Maintenance programs.
Golf Course (6 percent)
The City of Carlsbad opened a municipal golf course in the summer of 2007, which further enhances the tourist 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, a high quality golf experience, a first
General Government9%
Public Safety23%
Community and Economic Development9%Community Services13%
Public Works15%
Golf Course6%
Solid Waste1%
Water18%
Wastewater6%
City of Carlsbad
Functional Expenses for Fiscal Year 2011-12$195.5 Million
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class restaurant and clubhouse, and linkages to hiking trails, The Crossings at Carlsbad is a destination spot for golfers and non-golfers alike.
Solid Waste (1 percent)
The Solid Waste Division of the Utilities Department administers and monitors the solid waste contract and the Palomar Transfer Station agreement, and is responsible for the waste reduction and recycling components of the
Source Reduction and Recycling Element and Household Hazardous Waste Element to comply with state mandated AB939 and SB1016 diversion and disposal requirements.
Water Operations (18 percent)
The Carlsbad Municipal Water District, a subsidiary of the City of Carlsbad, provides potable and recycled water service to approximately 85 percent of the city (approximately 28,000 customers). The District
purchases 100 percent 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 percent)
The City of Carlsbad operates and maintains a sanitary wastewater collection system, which covers approximately 65 percent of the geographic area of the city. Wastewater is treated by the Encina Wastewater
Treatment Plant, a facility jointly owned by the cities of Carlsbad and Vista, the Leucadia Wastewater District, the Vallecitos Water District, the Buena Sanitation District, and the City of Encinitas.
The following sections will provide information about the operations of the governmental and business-type activities separately.
Governmental Activities The increase in net position for governmental activities was $34.1 million. This increase was generated by total
revenues of governmental activities of $170 million ($42 million in program revenues and $128 million in general revenues) offset by $134.1 million in total costs of governmental activities and a $1.8 in transfers to the Golf Course and Solid Waste funds.
The table below 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).
$0
$20
$40
$60
$80
GeneralGovernment Public Safety CommunityDevelopment CommunityServices Public Works
Governmental Activities Program Revenues and Expenses Fiscal Year 2011-12
(in millions)
Program Revenues
Expenses
25
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 ($14.7 million), grants and contributions
from other governments and organizations which subsidize certain programs ($27.3 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 $128 million.
The majority of Public Works revenues are used to acquire and build capital assets (versus covering operating expenses). In addition, the donation of capital assets from developers is reflected in the program revenues for Public
Works. Capital assets are generally constructed or purchased once sufficient revenue has been accumulated to pay for the cost. The city has entered into a new stage of its lifecycle, from a developing or growing stage to a mature
stage. As the city continues to mature and approach build-out, there will be fewer master planned projects being developed. In past years, these projects constructed new facilities, roads, parks, and other city-owned infrastructure.
The city is now moving to a more maintenance oriented city and will use funding sources such as the Infrastructure Replacement Fund to maintain and replace these assets. However, there are still some master planned communities
that were recently completed or are near completion (La Costa Greens, La Costa Oaks, La Costa Ridge and Robertson Ranch); the developers of these communities recently dedicated infrastructure to the city, a requirement
for development.
Business-Type Activities
$0
$10
$20
$30
$40
Water GolfCourse Wastewater Solid Waste
Business-Type Activities
Program Revenues and Expenses
Fiscal Year 2011-12(in millions)
Program Revenues
Program Expenses
Program revenues for the city’s business-type activities totaled $61.6 million for the year, while program expenses equaled $61.4 million.
Water 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; the combined amount of these contributions was just under of $3.2 million. Capital construction expenses are spread over the life of an asset as
annual depreciation charges (program expenses).
The city’s golf course enterprise was in its fifth full year of operation. Golf course operating expenses included interest on the advance from the General Fund and interest related to the golf course bonds issued for the
construction of the course, and depreciation related to the new golf course assets, resulting in a net loss of $5.0 million.
A more detailed discussion of each of the enterprises can be found in the Proprietary Funds Section.
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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), the implementation of Government
Accounting Standards Board (GASB) No. 54 resulted in the Community Activity Grants Fund being combined with the General Fund for financial statement presentation.
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, unassigned fund balances may serve as a useful measure of a government’s
net resources available for spending at the end of the fiscal year.
The city implemented GASB 54 in the prior
fiscal year which created five fund balance classifications instead of the three shown in
prior years. These new fund balance classifications: nonspendable, restricted,
committed, assigned and unassigned, comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Detail of the
fund balances by classification is shown in note 11.
As of the end of the current fiscal year, the city’s
governmental funds reported combined ending fund
balances of $505.2 million, up $25.6 million from the year
before. Approximately 11 percent of this ($54.6 million)
constitutes nonspendable fund balances, mostly comprised of
advances and loans to other funds. Restricted fund
balances can only be spent for a specific purpose stipulated
by law and make up about 48 percent ($241.8 million).
Assigned fund balances are intended to be used by the city
for specific purposes but do not meet the criteria to be
classified as restricted or committed. These make up 29
percent ($146.4 million) of the city’s fund balance.
Approximately 12 percent ($61.4 million) of the fund
balance is unassigned which is available for spending at the
city council’s discretion.
Total
Increase Percentage
(Decrease) Change
2011 2012
Revenues
Taxes $95.5 $99.2 $3.7 3.9%
Intergovernmental 1.9 1.1 (0.8) -42.1%
Licenses and permits 1.6 1.9 0.3 18.8%
Charges for services 6.5 6.6 0.1 1.5%
Fines and forfeitures 1.0 0.8 (0.2) -20.0%
Income from property and investments 2.2 2.1 (0.1) -4.5%
Miscellaneous 2.5 0.7 (1.8) -72.0%
Total revenues 111.2 112.4 1.2 1.1%
Expenditures
General government 16.5 16.7 0.2 1.2%
Interdepartmental charges (3.0) (3.7)(0.7) 23.3%
Public safety 43.9 44.5 0.6 1.4%
Community development 7.7 7.5 (0.2) -2.6%
Community services 22.3 22.6 0.3 1.3%
Public works 8.6 8.6 0.0 0.0%
Total expenses 96.0 96.2 0.2 0.2%
Excess (deficiency) before transfers 15.2 16.2
Transfers in 0.2 0.0
Transfers out (8.9) (12.7)
Increase (decrease) in fund balance 6.5 3.5
Beginning fund balance (as restated)129.6 136.1
Ending fund balance $136.1 $139.6
2011-12
Total
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
(in millions of dollars)
Nonspendable, ($54.6 million) 11%
Restricted Purposes ($241.8 million) 48%
Assigned($146.4 million)29%
Unassigned($61.4 million)12%
Governmental Fund Balances(in millions)$505.2 Million
Committed($1 million)
27
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 $139.6 million, an increase of $3.5 million. The unassigned fund balance portion of the General Fund was
$61.4 million.
The increase in revenues was primarily due to the increases in the leading tax revenues, sales tax and transient occupancy taxes. As the economy continues to show signs of improvement, these revenues rose which resulted in
the majority of the increases in the General Fund. Decreases were realized in property taxes, which are lagging revenues, and in the yield on the Treasurer’s portfolio (decreased income from property and investments); and
miscellaneous revenues which were the result of one-time prior year business licenses tax refunds and a reduction in reimbursed costs received from the administration of developer deposits.
As the city was preparing its 2011-12 Fiscal Year budget, maintenance and operations budgets were kept relatively
flat for all departments. A total of 14.75 full-time positions were eliminated. These reductions were partially offset by anticipated increases in health, retirement and previously negotiated salary and benefit increases. Overall the
General Fund budget increased by $2.4 million. The majority of this increase ($1.9 million) was due to an increase in budgeted transfers out from the General Fund to other city funds for infrastructure replacement, median and street
tree maintenance and $1.4 million to the city’s municipal golf course for debt service and operations. In previous years, the city subsidized the golf course through advances from the General Fund versus transfers out.
In previous fiscal years, the Redevelopment Debt Service Fund was considered a major fund for financial statement
presentation. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 that provided for the dissolution of all redevelopment agencies in the State of California. This action impacted the City of Carlsbad
that previously reported the redevelopment agency within the reporting entity of the city as a blended component unit (debt service, capital project, and special revenue funds). The majority of the capital assets and loans receivable
of these funds were transferred to the city while the remaining assets and liabilities were transferred to the city acting as the “successor agency” (trust funds) to hold the assets until they are distributed to other units of state and
local government. In accordance with the timeline set forth in the Assembly Bill, all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012. Due to these
actions by the state, the city’s Redevelopment Agency Debt Service Fund, Redevelopment Agency Capital Project Fund and Low and Moderate Income Housing Fund no longer exist as of February 1, 2012.
The General Capital Construction Fund had just under $9.8 million in capital expenditures during the fiscal year
which was predominantly for the construction of the Safety Training Facility, Alga Norte Park, the traffic signal program and the Human Capital Management System project. These costs led to a reduction in the General Capital
Construction fund balance of just under $7.6 million.
The three 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 position
(cost recovery), financial position, and cash flows.
28
$0
$5
$10
$15
$20
$25
$30
$35
$40
Water Golf Course Wastewater Solid Waste
Business-Type Activities
Operating Revenues and Expenses
Fiscal Year 2011-12(in millions)
Operating Revenues
Operating Expenses
The Carlsbad Municipal Water District (CMWD) funds had an operating gain of approximately $1.5 million for the year. Operating revenues were $37.0 million and operating expenses were $35.5 million. The largest factor
resulting in the operating gain is the increase in water sales revenue due to increased rates. Impacted by the continued annual increases in water rates (about 10 percent in January 2012), residents continued to conserve water
during the year. The drought, technically speaking, is “officially over” and most restrictions have been lifted. Consumers are being advised however, to continue to use water wisely and reduce where practical because water in
general, is a dwindling resource. The cost of purchased water from the Metropolitan Water District and the San Diego County Water Authority (suppliers of the District’s potable water) continues to increase, and therefore
CMWD rates must increase to cover the added cost. Non-operating revenues from investment earnings on the capital replacement funds and property tax receipts added to the operating gain, resulting in income before transfers
and capital contributions of $4.8 million.
In the fifth year of operation, the Golf Course Fund had an operating loss of $3.4 million, due to depreciating the enterprise's assets ($3.5 million). When golf course operating revenues are not sufficient to cover golf course
operating expenses, the General Fund will make contributions in the form of lease payments to pay for the shortfall. Food and beverage sales at the golf course restaurant (The Canyons) remain strong, and golf rounds and revenues
are on the rise.
The Wastewater Funds had an annual operating loss of $272,000 for the fiscal year. Total revenues from operations increased $769,000 from the previous year due to service charge rate increases. Non-operating revenues of $645,000
offset the operating loss, resulting in a net gain of $373,000 before transfers and capital contributions.
Solid Waste Operations and Storm Water Programs are combined on the city’s financial reports, and showed a net operating income of $124,000 for the year. Revenues were relatively flat when compared to the prior fiscal year,
and expenses increased about $400,000, primarily due to a reallocation of interdepartmental charges to better reflect the enterprise’s share of those charges.
Unrestricted net position for the Water, Golf Course, Wastewater, and Solid Waste Operations at the end of the year
amounted to $47.2 million, or approximately 11.7 percent of the total enterprise fund net position. The unrestricted net position may be used for rate stabilization, fluctuations in operating expenses, and unforeseen repairs and
maintenance. Approximately $45.5 million or 11.3 percent of the net position of all the proprietary funds are restricted for future capital construction of new and replacement water and wastewater infrastructure assets. Since
the funding for the replacement of infrastructure assets is not restricted, it is reflected in the Statement of Net Position as unrestricted. The city does, however, account for and monitor these amounts in separate funds to ensure
that water and wastewater assets can be replaced when needed. The large unrestricted net position deficit balance in the Golf Course Fund represents funds advanced from the city’s General Fund that were used to fund construction
and operating losses of the municipal golf course.
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General Fund Budgetary Highlights for Fiscal Year 2012
Management monitors revenues during the year and updates estimated revenue figures when new information is received by the city. General Fund revenue estimates were only modified slightly during the year as compared to
the originally budgeted estimates. Some of the factors that led to the $921,000 increase in revenue estimates included:
Several new federal and state grants were applied for and received during the year.
Funds received from developers for Expedited Fire Plan Check fees.
Increased sales tax revenue received as a result a slight recovery in the economy.
Higher than expected rebound in the tourism industry affecting TOT.
Increased development activity affecting licenses and permits revenue, as well as charges for services.
The slight increase from the total original expenditure budget to the final budget amounted to $381,000, due predominantly to the appropriations of the grant money received, sales tax audit expenses, and developer funded
studies.
The $3.3 million increase in transfers was predominantly due to a $1.6 million transfer to the General Capital Construction Fund for monies received from the Brownley Trust for future Cole Library modifications and a $1.4
million transfer to the Self Insured Benefits Fund to assist in the stabilization of future PERS rates.
The difference between the final budgeted expenditures and the actual expenditures for the year (on a budgetary basis) of $20.7 million can be generally summarized as follows:
$17.2 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.
Accumulated savings set aside for future technology and innovation enhancements.
$17.2 million in “savings” are planned to be used for:
The continuation of the human capital management system software upgrade.
Facilities work order software replacement/upgrade.
Lighting retrofits at several city parks.
Synthetic turf replacement/installation at several park sites.
Innovation projects throughout the city.
Conversion to a new integrated library system.
Other one-time capital outlay items, as needed, throughout the City.
Contributing to the increase in the unassigned General Fund balance of $3.8 million.
For purposes of budgetary presentation, actual revenues have been adjusted to exclude unrealized gains and losses in investments pursuant to GASB 31; actual expenditures have been adjusted to include remaining encumbrances.
Capital Asset and Debt Administration
Capital Assets At the end of Fiscal Year 2011-12, the city had recorded investments of just over $1.1 billion 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.
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Some of this year’s major capital asset additions included:
Developer-dedicated streets, drainage facilities, traffic signals, water and sewer lines and streetlights at:
o Rancho Carrillo
o La Costa Ridge
Faraday Avenue extension
Construction of Poinsettia Lane East
Several waterline projects
Several storm drain projects
In addition to carrying forward appropriations of $201.7 million for previously budgeted projects, the city’s Fiscal Year 2012-13 capital budget appropriates an additional $28.9 million for capital projects. These additional
appropriations are principally for the pavement management program, the traffic signal program, the acquisition of open space (Prop C projects), facilities maintenance projects, new traffic signals, miscellaneous street projects,
enhancing the wastewater collection system, additional water and recycled water lines, the water reservoir repair/replacement program, several drainage projects, improvements at the Encina water pollution control facility,
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 wastewater
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.
Total
Percentage
Change Change
2011 2012 2011 2012 2011 2012 2011-12 2011-12
Land $146.7 $146.9 $9.3 $9.3 $156.0 $156.2 $0.2 0.1%
Construction in progress 156.9 95.5 22.4 8.0 179.3 103.5 (75.8) -42.3%
Buildings and other structures 78.9 79.3 40.2 47.5 119.1 126.8 7.7 6.5%
Improvements other than buildings 45.4 45.5 50.9 50.9 96.3 96.4 0.1 0.1%
Machinery and equipment 27.1 28.4 2.4 2.4 29.5 30.8 1.3 4.4%
Infrastructure 544.1 614.0 290.4 304.0 834.5 918.0 83.5 10.0%
Intangibles - 2.9 - - - 2.9 2.9 100.0%
Wastewater treatment facility - - 52.2 51.0 52.2 51.0 (1.2) -2.3%
999.1 1,012.5 467.8 473.1 1,466.9 1,485.6 18.7 1.3%
Accumulated depreciation (214.5) (231.3) (109.6) (121.1) (324.1) (352.4) (28.3) 8.7%
Total $784.6 $781.2 $358.2 $352.0 $1,142.8 $1,133.2 ($9.6) -0.8%
Activities Activities Total
CITY OF CARLSBAD'S CAPITAL ASSETS
(in millions of dollars)
Governmental Business-Type
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Long-Term Debt
At year-end, the city had $43.4 million in bonds, loans, capital leases and agreements, a decrease of $12.6 million from last year, as shown in the table below. Although payments made on all of the city’s outstanding debt created a
portion of the reduction in the city’s debt, the largest factor in the reduction in debt was the transfer of the 1993 Carlsbad Housing and Redevelopment Commission Tax Allocation Bonds from the Redevelopment Agency to the
Successor Agency (trust fund) due to actions taken by the state to dissolve all redevelopment agencies. More detail about the city’s long-term liabilities is presented in note 8 to the financial statements.
Economic Factors and Next Year’s Budgets and Rates for Fiscal Year 2013
The State of California adopted its Fiscal Year 2012-13 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 2012-13 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.
ABX1 26 and AB1484 were passed by the state, dissolving all redevelopment agencies within the State of
California. The city has reduced prior redevelopment staffing levels in order to reduce administrative expenses to the level the state will now allow. Future redevelopment projects have either been canceled or
alternative funding sources were identified.
If state revenues fall short of projections there is a trigger to determine if cuts are necessary which could
impact local agencies.
Net assessed values in the city stand at almost $23.3 billion, a 0.2 percent decrease from the prior fiscal year.
Sales tax revenues are projected to continue to grow moderately with a 4.4 percent forecasted increase in the
Fiscal Year 2012-13 Budget.
Due to the opening of a new hotel and a rebound in tourism, transient occupancy taxes (TOT) are expected to grow by 8 percent.
PERS rates for the miscellaneous plan have increased for Fiscal Year 2012-13 from 22.3 percent to 23.1 percent, and have also increased from 32.1 percent to 33.2 percent for the safety plan.
The city will make additional payments to PERS to assist in the stabilization of future PERS rates.
Median home prices in Carlsbad have decreased by 7.3 percent from March 2011 ($626,000) to March 2012 ($580,000).
Due to the overall downturn in the economy, most city departments were not given additional maintenance and
operational funding to cover changes in the Consumer Price Index (CPI) and growth in the city, minimal new capital outlay, and additional personnel funding for only existing contractual obligations.
Through a Memorandum of Understanding (MOU), the Carlsbad City Employees’ Association (CCEA), the
Employer Paid Member Contribution (EPMC) paid by the city will decrease from 3.5 percent to 0 percent effective December 1, 2012. For management employees, the Employer Paid Member Contribution (EPMC)
Total
Percentage
Change
2011 2012 2011 2012 2011 2012 2011-12
Bonds $9.7 $0.0 $17.7 $17.3 $27.4 $17.3 -36.9%
Loans 0.6 0.5 24.2 22.8 24.8 23.3 -6.0%
Installment purchase agreement - - 3.4 2.6 3.4 2.6 -23.5%
Obligations under capital leases - - 0.3 0.1 0.3 0.1 -66.7%
Adjusted by: premiums/discounts - - 0.1 0.1 0.1 0.1 0.0%
Total $10.3 $0.5 $45.7 $42.9 $56.0 $43.4 -22.5%
Activities Activities Total
CITY OF CARLSBAD'S OUTSTANDING DEBT
(in millions of dollars)
Governmental Business-Type
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paid by the city will decrease from 3.5 percent to 0 percent effective December 1, 2012. The Carlsbad Firefighters’ Association (CFA), the Carlsbad Police Officers’ Association (CPOA) and the Carlsbad Police
Management Association (CPMA) are currently negotiating new contracts, with the expiration of their existing contracts on December 31, 2012.
These factors were considered when preparing the City of Carlsbad’s General Fund budget for Fiscal Year 2012-13.
Budgeted expenditures are expected to increase 3 percent to $115.1 million. The total personnel budget for Fiscal Year 2012-13 is $73.3 million, which is 0.7 percent more than the previous year’s personnel budget of $72.8
million. The total maintenance and operations (M&O) budget for Fiscal Year 2012-13 is $30.7 million, which is 4.4 percent higher than the previous year’s budget of $29.4 million. The increase in personnel and M&O budgets is due
primarily to the opening of the new Carlsbad Safety Training Center. There is $110,000 in major capital outlay purchases planned in the General Fund for Fiscal Year 2012-13 for three EKG monitors. Operating transfers out of
the General Fund are budgeted at $11 million, a $1.5 million increase from the prior fiscal year. This increase is due to the city budgeting a $1.8 million transfer to the city’s Self-Insured Benefits Fund as a set aside to address
anticipated future pension rate increases from CalPERS. Adding to the adopted budget of $115.1 million for the General Fund, approximately $17.2 million in unspent Fiscal Year 2011-12 budgeted expenditures will be carried
over to Fiscal Year 2012-13, as well as $5.8 million in open encumbrances as of June 30, 2012.
As the city is approaching the buildout of its remaining vacant land, the city is now ushering in a new era focusing on maintaining infrastructure rather than building it. In an effort to address this issue, the city has developed an
Infrastructure Replacement Fund (IRF). In this fund, the city sets aside money on an annual basis for major maintenance and replacement of its infrastructure. In the Fiscal Year 2012-13 Operating Budget, the city has
budgeted a $7.5 million transfer from the General Fund to the IRF to meet future needs.
During the current fiscal year, the unassigned fund balance in the General Fund increased by $3.8 million to $61.4 million due to fiscal discipline and the elimination and/or unfunding of 14.75 positions. Based on Fiscal Year 2012-
13 projections, the unassigned General Fund balance is expected to grow approximately $1 million.
There appears to be sufficient revenue projected to build the projects listed in the Fiscal Year 2012-13 Capital Improvement Program (CIP).
The city’s business-type activities reflect the following:
The combined fixed and variable costs of water purchased from the San Diego County Water Authority are projected to rise about 9 percent and 10 percent respectively in Fiscal Year 2012-13. In December 2012, a
public meeting will be held to determine how much water rates will increase effective January 1, 2013. The proposed rate increases are needed to fund the additional cost of purchased water, and to maintain an adequate
reserve balance.
Proposed wastewater rate increases will also be discussed during the public meeting to be held in December
2012. If approved, these rates would be effective January 1, 2013. This proposed rate increase is needed to assist with higher depreciation expenses from the addition of completed facilities to the inventory, and to
maintain an adequate reserve balance.
The golf course budget is brought forward on a calendar year basis in December of each year. The Calendar Year 2012 budget reflects a projected operating loss of over $945,000. The City Council authorized the
General Fund to transfer the anticipated loss to the Golf Course Fund in January 2012.
There are no projected significant changes in other revenue sources.
Contacting the City’s Financial Management
This financial report is designed to provide the citizens, taxpayers, customers, investors, and creditors with a general overview of the city’s finances and to demonstrate the city’s accountability for the money it receives. If you have any questions about this report or need additional information, contact the Finance Department,
1635 Faraday Avenue, Carlsbad, CA 92008, (760) 602-2430, or visit us online at www.carlsbadca.gov.
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CITY OF CARLSBAD Notes to the Financial Statements
Public Other
Facilities Governmental
Construction Funds Total
-$ -$ 13,690 $
- 439,654 439,654
- - 118,385
- - 8,107,055
- - 45,989,061
- 439,654 54,667,845
- 37,993,987 37,993,987
- 5,762,800 5,762,800
53,912,707 72,216,492 192,712,984
- 668,716 668,716
- 513,706 513,706
- 901,885 901,885
- 973,550 973,550
- 2,245,734 2,245,734
53,912,707 121,276,870 241,773,362
- - 1,000,000
- - 1,000,000
- - 14,544,241
- - 836,395
- - 2,394,005
- - 3,180,599
- - 2,000,132
- - 123,464,861
- - 146,420,233
- - 61,383,660
53,912,707 $ 121,716,524 $ 505,245,100 $
Governmental Funds
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84
85
86
87
88
89
90
91
92
93
94
95
96
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98
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108
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CITY OF CARLSBAD
Combining Statement of Fiduciary Net Position by Project Area
Private Purpose Trust Funds
June 30, 2012
Redevelopment Redevelopment Total
Obligation Obligation Private
Retirement Retirement Purpose
Trust Fund Trust Fund Trust
Village Project Area SCCRA Project Area Funds
Current assets:
Cash and investments 8,180,768 $ 669,110 $ 8,849,878 $
Receivables:
Other 2,146 - 2,146
Total current assets 8,182,914 669,110 8,852,024
Capital assets:
Machinery and equipment 26,946 - 26,946
Less accumulated depreciation (19,311) - (19,311)
Total capital assets 7,635 - 7,635
Total assets 8,190,549 $ 669,110 $ 8,859,659 $
LIABILITIES
Current liabilities:
Accrued liabilities 432,611 $ 61,341 $ 493,952 $
Accrued interest payable 161,530 - 161,530
Current portion of long-term debt 570,000 - 570,000
Total current liabilities 1,164,141 61,341 1,225,482
Noncurrent liabilities:
Due to the City of Carlsbad 16,317,250 2,441,513 18,758,763
Tax allocation bonds payable 8,625,000 - 8,625,000
Total noncurrent liabilities 24,942,250 2,441,513 27,383,763
Total liabilities 26,106,391 2,502,854 28,609,245
NET POSITION
Held in trust for redevelopment
obligation retirement purposes (17,915,842) $ (1,833,744) $ (19,749,586) $
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CITY OF CARLSBAD
Combining Statement of Changes in Fiduciary Net Position by Project Area
Private Purpose Trust Funds
June 30, 2012
Redevelopment Redevelopment Total
Retirement Retirement Private
Obligation Obligation Purpose
Trust Fund Trust Fund Trust
ADDITIONS Village Project Area SCCRA Project Area Funds
Contributions:
Tax increment 1,175,074 $ 62,268 $ 1,237,342 $
Income from property and investments 16,538 7,138 23,676
Miscellaneous - 36,453 36,453
Total additions 1,191,612 105,859 1,297,471
DEDUCTIONS
Extraordinary gain (loss)18,702,156 1,774,618 20,476,774
General and administrative 178,303 161,310 339,613
Interest expense and fees 226,995 3,675 230,670
Total deductions 19,107,454 1,939,603 21,047,057
Change in net position (17,915,842) (1,833,744) (19,749,586)
Net position - beginning - - -
Net position - ending (17,915,842) $ (1,833,744) $ (19,749,586) $
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Statistical Section
Statistical Section
Statistical SectionStatistical 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 124 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 135 These schedules contain information to help the reader assess the City’s most
significant local revenue source, property taxes.
Debt Capacity 140 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 150 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 154 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.
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