HomeMy WebLinkAbout1981-01-20; Parking Authority; Resolution 21PARKING AUTHORITY OF THE CITY OF CARLSBAD
RESOLUTION NO. 21
A RESOLUTION OF THE PARKING AUTHORITY OF THE CITY
OF CARLSBAD APPROVING A PRELIMINARY OFFICIAL STATEMENT
FOR ITS 1981 PARKING REVENUE BONDS, AND AUTHORIZING
THE DISTRIBUTION THEREOF
WHEREAS, this Authority has heretofore declared its
intention to issue and sell its 1981 Parking Revenue Bonds; and
WHEREAS, there has been presented to the Authority a
Preliminary Official Statement relating to said Bonds; and
WHEREAS, the Authority has reviewed said Preliminary
Official Statement;
NOW, THEREFORE, BE IT RESOLVED that the Preliminary
Official Statement in the form presented to the Authority as of
this date hereby is approved and the distribution thereof to
prospective purchasers of the Bonds hereby is authorized;
provided, however, that Bartle Wells Associates hereby is
authorized and directed to make such amendments and
modifications to said Preliminary Official Statement prior to
the distribution thereof as it determines to be necessary in
order to make the information set forth therein current and
correct, subject to the approval of Bond Counsel.
AYES: Directors Richardson, McComas, Goodwin, Chase and Dunne
NOES: None
ABSENT: None
APPROVED AND ADOPTED THlg 20thday of January, 1981.
ATTEST:
Clerk
NEW ISSUE
SALE DATE:
February 10, 1981
THE PARKING AUTHORITY OF THE CITY OF CARLSBAD
SAN DIEGO COUNTY, CALIFORNIA
$1,500,000 1981 PARKING REVENUE BONDS
The bonds described in this Official Statement are special obligations of the Carlsbad Park-
ing Authority, an authority created pursuant to the Parking Law of 1949. The bonds
are secured by a pledge of revenues received by the authority under a lease with the
City of Carlsbad. Neither the full faith and credit nor the taxing power of the City of
Carlsbad, the State of Calif ornia, or any other political subdivision of the state are pledged
to the payment of the bonds. Bond proceeds will be used to acquire a public parking
facility.
BONDS DATED: February 1, 1981
DENOMINATION: $5,000
DUE: February 1, as shown below:
RATING:
Moody's Investors Service:
Yield or
Year Amount Coupon Price Year Amount
1984 $30,000 % % 1993 $ 75,000
1985 40,000 1994 100,000
1986 50,000 1995 100,000
1987 50,000 1996 100,000
1988 60,000 1997 100,000
1989 60,000 1998 125,000
1990 60,000 1999 125,000
1991 75,000 2000 125,000
1992 75,000 2001 150,000
Coupon
Yield or
Price
% %
The bonds are issued as coupon bonds, payable to bearer and registrable as to principal
and interest only, with provision for deregistration and reregistration. Principal is pay-
able annually beginning February 1, 1984, and interest is payable February 1, 1982 and
semiannually thereafter on August 1 and February 1 at the office of the fiscal agent.
Security Pacific National Bank, Los Angeles, California, and at offices of co-paying agents
in New York and Chicago. The maximum interest allowable on any bond is 8 percent.
Bonds maturing on or before February 1, 1991 are not callable prior to maturity. Bonds
maturing on or after February 1, 1992 are callable prior to maturity beginning February 1,
1991 on terms stated in the Official Notice of Sale, including payment of a premium.
The authoritv is offering these bonds when, as, and if issued, subject to the legal opinion
of Stradling,'Yocca, Carlson & Rauth, bond counsel, Newport Beach, California, approving
the validity of the bonds and stating that interest on the bonds is exempt from present
federal income taxes and from California personal income taxes under existing statutes,
regulations, and court decisions.
Terms and conditions of the offering are fully set forth in the Official Notice of Sale dated
, 1981. Bids will be received Tuesday, February 10, 1981, at Security Pacific
Bank, 333 South Hope Street, 40th floor, Los Angeles, California, up to and including
11:00 AM Pacific Time. Bids will not be accepted for less than 92 percent of par. Follow-
ing acceptance of a bid, information on bond coupon rates and reoffering prices will be
imprinted in the spaces above.
This page supplements the accompanying Official Statement dated January 20, 1981.
OFFICIAL STATEMENT
THE PARKING AUTHORITY
OF THE CITY OF CARLSBAD
San Diego County, California
Formed April 19, 1966
by resolution of the Carlsbad City Council
Carlsbad City Hall
1200 Elm Avenue
Carlsbad, CA 92008
AUTHORITY COMMISSION
Lyle R. Richardson, Chairman
Glenn E. McComas
Richard L. Goodwin
Lewis Chase
David M. Dunne
Frank C. Rice, Treasurer Ex-Officio
CITY OF CARLSBAD
Ronald C. Packard, Mayor
Mary H. Casler, Vice Mayor
Claude A. "Bud" Lewis
Girard W. "Lefty" Anear
Ann J. Kulchin
Aletha "Lee" Rautenkranz, City Clerk
Frank C. Rice, Treasurer
Frank Aleshire, City Manager
Vincent F. Biondo, Jr., City Attorney
James Elliott, Finance Director
PROFESSIONAL SERVICES
Stradling Yocca Carlson & Rauth,
a professional corporation, Newport Beach,
California, Bond Counsel
Bartle Wells Associates, San Francisco,
California, Financing Consultant
This Official Statement provides information
about the issuer and its bonds. The Official
Statement includes:
1. Data supplied by the issuer and by others,
as indicated herein;
2. Estimates or projections which may or may
not be realized and which should not be
construed as assertions of fact; and
3. Summaries and descriptions of legal and
financial documents, or their contents,
which do not purport to describe such
documents completely and which are made
expressly subject to the full provisions
of the documents cited.
This Official Statement does not constitute a
recommendation, express or implied, to pur-
chase or not to purchase these bonds or any
other previous bonds of the issuer.
The date of this Official Statement is January 20,
1981.
Prepared on behalf of the issuer by
BARTLE WELLS ASSOCIATES
Municipal Financing Consultants
100 Bush Street, San Francisco 94104
(415) 981-5751
CONTENTS
INTRODUCTION 1
THE BONDS 2
Sale of the Bonds 3
Legal Opinion 3
Closing Documents 4
Title Insurance 4
THE RESOLUTION 5
Pledge of Revenues 5
Creation of Funds 5
Application of Revenues 5
Insurance 6
Additional Bonds or Indebtedness 6
Maintenance of Revenues 6
Other Covenants 7
LEASE AGREEMENT SUMMARY 8
CARLSBAD PARKING AUTHORITY 10
THE PROJECT 10
PLAZA CAMINO REAL 11
ORGANIZATION AND FINANCIAL
INFORMATION 12
Revenues and Expenditures 12
Sales Tax Revenue 15
Long-Term Debt 15
Leases 16
Assessed Valuation 17
Tax Levies and Delinquencies 17
California Constitution Article XIIIA 18
Appropriations Limit 18
THE REGION 21
General 21
Population and Income 21
Taxable Sales 23
Employment 24
Major Employers 25
Camp Pendleton 26
Building Activity 26
Utilities and Community Services 27
OS7/A1
INTRODUCTION
Issuer: The Parking Authority of the City of Carlsbad was formed April 19, 1966 by
resolution of the Carlsbad city council. A five-member commission, appointed by the
city council, governs the authority.
Purpose: The parking authority is issuing these 1981 Parking Revenue Bonds to pay its
share of the cost of an expansion to the parking facility at the Plaza Camino Real
Shopping Center located in the City of Carlsbad. Under the terms of a developer's
agreement the parking authority has agreed to pay certain costs of the parking facility
expansion, while the developer will pay all remaining costs and transfer ownership of the
facility to the parking authority.
Security: The bonds are a special obligation of the authority and are secured by
quarterly lease payments to the parking authority by the City of Carlsbad. The
authority pledges these lease payments to payment of principal and interest on the
bonds. As additional security, the authority will establish from bond proceeds a bond
reserve fund equal to average annual debt service.
Economic Factors: Carlsbad is located in northwestern San Diego County, the county's
fastest-growing area. The city's population has increased about 70 percent over the
past four years, to 35,500. The city is known for its year-round mild climate and
recreational and resort facilities.
Plaza Camino Real Shopping Center, Carlsbad's largest employer, is the super-regional
shopping center in the north county area. The Plaza opened in 1969, and an expansion
completed in 1979 doubled the retail area to 1,138,000 square feet. Sales tax revenue
coming to the city attributable to the Plaza amounted to about $1 million in 1979/80. The
city's largest single source of revenue since the passage of Proposition 13 has been sales
tax revenue.
This introduction is not a summary of the Official Statement. Information presented in this
section is treated more completely elsewhere in this Official Statement, which should be read
in its entirety.
r OS7/A2
THE BONDS
$1,500,000 The Parking Authority of the City of Carlsbad 1981 Parking Revenue Bonds
Date: February 1, 1981
Denomination: $5,000
Estimated Bond Service:
Year
Ending
Feb. 1
Principal
Maturing
Feb. 1
Interest
Estimated
at 8%i
Total
Estimated
Bond Service
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
30,000
40,000
50,000
50,000
60,000
60,000
60,000
75,000
75,0002
75,0002
100,0002
100,0002
100,0002
100,0002
125,0002
125,0002
125,0002
150.0002
$1,500,000
$ 120,000
120,000
120,000
117,600
114,400
110,400
105,400
101,600
96,800
92,000
86,000
80,000
74,000
66,000
58,000
50,000
42,000
32,000
22,000
12,000
$1,621,200
$ 120,000
120,000
150,000
157,600
164,400
160,400
166,400
161,600
156,800
167,000
161,000
155,000
174,000
166,000
158,000
150,000
167,000
157,000
147,000
162.000
$3,121,200
2 -
Bond interest has been estimated at the annual rate shown. Actual coupon rates will
be set by competitive bid, and are likely to vary from the annual rates estimated.
As a result, both interest and bond service are expected to differ from the amounts
estimated.
Callable on any interest payment date on or after February 1, 1991.
Interest: Coupons are payable February 1, 1982 and semiannually thereafter on Auaust 1
and February 1.
Redemption: Bonds maturing 1984 through 1991 ($425,000 principal amount) not caUable.
Bonds maturing 1992 through 2001 ($1,075,000 principal amount) callable at the option of
the authority as a whole or in part on any interest payment date on or after February 1,
1991 in inverse order of maturity and by lot within each maturity. Premium of
one-quarter of 1 percent for each year or portion of a year from date of redemption to
date of maturity, but not to exceed 2 percent.
OS7/A3
Notice of Redemption: Fiscal agent will publish a notice in a general circulation
newspaper in the City of Los Angeles at least 30 days prior to call date, and will mail
notice to all registered owners as they appear in the registry book.
Registration: The bonds are issued as coupon bonds, payable to bearer and registrable
as to principal and interest only, with provision for deregistration and reregistration at
the expense of the holder.
Payment: At the office of the fiscal agent. Security Pacific National Bank, Los Angeles,
California, and at offices of co-paying agents in New York and Chicago.
Tax Status: In the opinion of bond counsel, interest on the bonds is exempt from
present federal income taxes and from California personal income taxes under existing
statutes, regulations, and court decisions.
Authority for Issuance: Issued pursuant to the Parking Law of 1949 (Part 2 of
Division 18, commencing at Section 32500, of the Streets and Highways Code of the State
of California), and Resolution of Issuance and Official Notice of Sale dated [ ] , 1981.
Purpose: Bond proceeds will be used to acquire public parking facilities, to fund a
Reserve Fund and Working Capital Fund, and to pay bond issuance costs.
Security: These bonds are payable from and secured by a pledge of revenues received
by the authority under a lease with the City of Carlsbad.
Bond principal and interest are payable from quarterly lease payments by the city.
Under the terms of the lease agreement, the city agrees to pay the authority a yearly
rental sufficient to pay bond principal and interest, plus additional rental sufficient to
meet other necessary expenses of the authority. The city has agreed to provide the
funds needed from budgeted appropriations in each fiscal year.
These bonds are a special obligation of the authority only, and are not a debt, liability,
or obligation of any other public agency, or a lien or charge against the property or
funds of the authority, except to the extent of the pledged revenues as provided by the
resolution pursuant to which the bonds are issued. Neither the full faith and credit nor
the taxing power of the authority, the State of California, or any political subdivision of
the state is pledged to payment of the bonds.
The authority will also fund a Reserve Fund equal to average annual debt service from
bond proceeds.
SALE OF THE BONDS
The initial offering of these bonds is made in accordance with the Official Notice of Sale
dated [ ] , 1981. Matters discussed in this section are expressly subject to the
terms and conditions of said Official Notice, to which reference should be made for
further detail.
LEGAL OPINION
The legal opinion of Stradling, Yocca, Carlson & Rauth, bond counsel, of Newport
Beach, California, approving the validity of the bonds, will be made available to the
purchaser at the time of the original delivery of the bonds, and printed on each bond at
the authority's expense.
The statements of law, summaries of documents, and legal opinion set forth herein under
the captions "The Bonds," "Lease Agreement," and "The Resolution" have been reviewed
^ " OS7/A4
by bond counsel. Bond counsel's employment is limited to a review of the legal
proceedings required for the authorization of the bonds and to rendering an opinion as
to the validity of the bonds and the exemption of interest on the bonds from income
taxation. Other than as noted above, bond counsel's employment does not extend to a
review of this Official Statement.
CLOSING DOCUMENTS
At the time of delivery of the bonds to the successful bidder, in addition to customary
closing documents, the issuer will furnish the following documents:
(a) Legal Opinion - The legal opinion of Stradling, Yocca, Carlson & Rauth, bond
counsel, of Newport Beach, California, approving the validity of the bonds, will be
furnished the successful bidder at or prior to the time of delivery of the bonds, at
the expense of the authority. A copy of that opinion, certified by an officer of'the
authority by facsimile signature, will be printed on the back of each bond. No
charge will be made to the purchaser for such printing or certification;
(b) A certificate of the authority certifying that, on the basis of the facts, estimates,
and circumstances in existence on the date of issue, it is not expected that the
proceeds of the bonds will be used in a manner that would cause the bonds to be
arbitrage bonds;
(c) A certificate of the authority signed by the officers and representatives of the
authority, certifying to the following: (1) that said officers and representatives
have signed the bonds, whether by facsimile or manual signature, and that they
were respectively duly authorized to execute the sam.e; and (2) that there is no
litigation pending affecting the validity of the bonds;
(d) The receipt of the authority showing that the purchase price of the bonds, including
interest accrued to the date of delivery thereof, has been received by the authority.
(e) Certificates of the authority and the city, signed by the appropriate officer of each
acting in their official capacity, to the effect that to the best of his knowledge and
belief, and after reasonable investigation, that as to matters relating to the authority
and the city respectively: (1) neither the Official Statement relating to the bonds
nor any amendment or supplement thereto contains any untrue statement of a material
fact or omits to state any material fact necessary to make the statements therein, in
hght of the circumstances in which they were made, not misleading; (2) since the
date of the Official Statement no event has occurred which should have been set
forth in an amendment or supplement to the Official Statement which has not been
set forth in such an amendment or supplement; nor (3) has there been any material
adverse change in the operation or financial affairs of the authority or the city since
the date of such Official Statement.
TITLE INSURANCE
A policy of title insurance, insuring the authority's title to the property and the leasehold
interest to the city under the lease agreement, will be provided prior to the delivery of
the bonds. The policy will be in the amount of $1,500,000 and will be expressly enforceable
for the benefit of the bondholders. The policy will be written by Title Insurance and Trust
Company, of Los Angeles.
OS7/A5
* THE RESOLUTION
Resolution No. , of the Parking Authority of the City of Carlsbad, adopted
[ ] , 1981, provides for the issuance of parking revenue bonds and sets forth the
terms and conditions for the bonds. The following brief summary does not purport to be
a complete statement of the resolution's provisions. The resolution provides for the
creation of special funds for the administration and control of bond proceeds and rental
revenues. The; special aspects of these funds together with other provisions of the
resolution which protect the interests of the bondholders are discussed in the following
sections.
PLEDGE OF REVENUES
The resolution irrevocably pledges all pledged revenues of the authority, as that term is
defined by the resolution, to the punctual payment of principal and interest on the
bonds. Pledged revenues include all rentals payable by the city to the authority under
the terms of the lease agreement, all moneys credited upon rentals as provided in the
lease agreement or in the resolution, all gross revenues, if any, received by the
authority from the re-letting or operation of the project, and any other moneys which
under the resolution are required to be placed in the Bond Service Fund.
CREATION OF FUNDS
The resolution establishes funds created by the fiscal agent for the deposit of proceeds
of the bonds and payment of the bonds as follows:
1981 Parking Revenue Bonds, Acquisition Fund - Used to pay all costs of the project.
Held by the authority.
1981 Parking Revenue Bonds, Bond Service Fund - Used to receive funds to pay
principal and interest on the bonds. Held by fiscal agent.
1981 Parking Revenue Bonds, Reserve Fund - Used to ensure timely payment of bond
principal and interest if no other funds are available. Held by fiscal agent.
1981 Parking Revenue Bonds, Working Capital Fund - Used for the payment of any taxes
or assessments, insurance premiums, all costs or expenses resulting from any default by
the city under the lease, including maintenance and operation, if necessary, and all
sums necessary to maintain an amount of $1,500 in the fund. Held by the authority.
The resolution also provides for creation of a 1981 Parking Revenue Bonds, Redemption
Fund, to be held by the fiscal agent, in the event that bonds are called prior to
maturity.
APPLICATION OF REVENUES
The resolution stipulates the application, of proceeds of the bonds. The amount of
$156,000 will be deposited in the Reserve Fund. The Working Capital Fund will receive
$1,500. Accrued interest from the date of the bonds to their delivery will be deposited
in the Bond Service Fund. The balance will be deposited in the Acquisition Fund. The
Acquisition Fund will be used for all costs incurred for the purpose of carrying out the
project, including costs of bond issuance.
As provided in the resolution, the treasurer will make deposits with the fiscal agent into
the following funds:
4 OS7/A6
Bond Service Fund - All pledged revenues received by the authority as provided in the
lease agreement will be placed in the Bond Service Fund and will be used for payment of
principal and interest on the bonds as they fall due. On any February 1 that portion of
moneys m the Bond Service Fund which is in excess of the amount required to pay the
principal of and interest on the bonds then due will be transferred if necessary to the
Reserve Fund until the balance in that fund equals $156,000, and if necessary to the
working Capital Fund to maintain it at required levels. Moneys in excess of the foreqoina
requirements will be used by the authority to reimburse the city for rentals previously
Sf J° authority under the lease agreement. Interest earnings wiil remain a part of
the Bond Service Fund. v ^i- ui.
Reserve Fund - The Reserve Fund will initially be funded from bond proceeds and wiU
be used only if pledged revenues in the Bond Service Fund are insufficient to pay debt
service when due. Moneys in excess of $156,000 will be transferred to the Bond Service
fund. Moneys m the Reserve Fund may be used for final year's debt service.
INSURANCE
In the resolution, the authority covenants to maintain or cause to be maintained the
marker^ insurance coverage to the extent available from reputable insurers in the open
1. Insurance against loss or damage resulting from vandalism, malicious mischief riot
and civil commotion, and such perils ordinarily defined as "extended coverage "
This insurance shall be maintained in an amount not less than the full insurable
value of the properties or the amount of the authority's outstanding bonds whichever
is less, subject to deductible conditions of not to exceed $10,000 for any one loss.
2. Extended coverage use and occupancy or business interruption or rental income
insurance m an amount equal to not less than 12 months' rental.
3. Public liability insurance against claims for bodily injury or death, or damaae to
property to a limit of not less than $500,000 with respect to any one person not
less than $1,000 000 with respect to any number of persons in one accident' and
property damage liability insurance in an amount not less than $100,000.
All insurance proceeds with respect to loss or damage to the property shaU be paid to
the fiscal agent. If the project is not to be repaired or rebuilt, the fiscal agent shall
deposit the same in the Redemption Fund.
ADDITIONAL BONDS OR INDEBTEDNESS
shall not issue additional bonds, except refunding bonds, or incur anv
other liability or indebtedness, payable from pledged revenues or the Reserve Fund but
the authority may issue bonds, or incur liabiUty or indebtedness, payable from' any
revenues or funds of the authority other than the pledged revenues or Reserve Fund.
MAINTENANCE OF REVENUES
The authority shall, if it should operate the project by reason of default by the citv
fifti, Pf^^^^^^^.' ^""^ i-ates, tolls, fees, rentals, or other charges in connection
with the services and facihties furnished from the project sufficient to pay principal and
interest on the bonds as they become due, together with all expenses of operation
maintenance, and repair of the project and such additional sums as may be required for
the Reserve Fund; provided, however, that all such rates, tolls, fees, rentals or other
Charges in connection with the services and facilities furnished by the project shall be
Igrieme t P^^ovisions, if any, relative. thereto as may be contained in the lease
OS7/A7
OTHER COVENANTS
The resolution sets forth other covenants by the authority for the protection of the
bondholders, including the following:
0 To punctually pay or cause to be paid interest and principal on the bonds,
o To pay all lawful claims against the project.
o To commence with the acquisition of the project and continue the same to completion
in accordance with the lease agreement promptly and in an economical manner.
o To enforce the lease agreement and to require the city to perform all its obligations
thereunder.
o To not mortgage or otherwise encumber the project or the revenues subject to certain
limited exceptions.
o To employ a certified public accountant to prepare an annual audit.
o To operate, maintain, and preserve the project in good repair and working order,
and to operate the project in an efficient and economical manner.
The consent of the authority and the bondholders holding 60 percent in aggregate principal
amount of the outstanding bonds is required for the amendment, waiver, or modification of
the covenants.
OS7/A8
LEASE AGREEMENT SUMMARY
Under terms of the lease agreement dated , the authority agrees to acquire
public parking facihties with the proceeds of the revenue bonds. The authority agrees
to lease the parking facilities to the city for quarterly rental payments equal on an
annual basis, to maximum annual debt service on the bonds, continuing until the revenue
bonds have been retired. The first rental is due April 1 or such earlier date as the
parking facilities are transferred to the authority. Notwithstanding the provisions of the
lease, it is contemplated that no rental will be received from the city for the period
prior to the date the bonds are sold and delivered.
As additional rental, the city agrees to pay (1) all utilities, taxes, and assessments;
(2) insurance premiums; (3) all costs and expenses, including enforcement of the terms
01 the lease; and (4) amounts needed to maintain a working capital fund of $1,500.
The city agrees to maintain the parking facilities in good condition, pay all costs and
expenses of its operation, and to keep it clear of all hens, charges, or encumbrances.
The city covenants and agrees to include and maintain in its budget for each fiscal year
all rentals payable, to make the necessary appropriations, and to provide the funds
necessary to meet them. The authority in turn pledges the rentals due under the lease
for the payment and security of the principal and interest of the bonds.
The authority agrees to insure the project during the term of the lease against loss or
damage to the city resulting from fire, lightning, vandalism, malicious mischief, riot and
civil commotion, such perils ordinarily defined as "extended coverage," and public liabihtv
and property damage protecting both the authority and the city.
Rentals will abate during any period in which, by reason of damage or destruction
substantial interference with the city's use and occupancy occurs. In the event of such
damage or destruction the agreement will continue in force and the city waives anv riaht
to terminate. jr a
The city is obligated to operate the parking faciUties to benefit the public and permit
the authority to carry out its covenants to its bondholders.
The city has the right to sublease or permit others to use aU or any part of the
facilities leased, but is not thereby relieved of its obligation to pay rentals or from anv
other obligation; nor may the lease be mortgaged, pledged, assigned, or transferred
without the prior written consent of the parking authority.
Any award made in eminent domain proceedings for the taking or damaging of the proiect
shall be paid to the authority for the benefit of the holders of the revenue bonds
subject to such reversionary or other rights to share in such award as may be contained
in any document of record relating to the site.
Upon expiration of the lease, the city shall surrender to the authority aU property and improvements. ' ^ ^
The city agrees to pay any sums of money which may be secured by Uens against the
leased property. The authority agrees to take whatever steps may be necessary to
contest or recover any proposed or paid tax or assessment, and the city agrees to
reimburse the authority for any costs and expenses thus incurred.
n^nvinS^^T'll • ^° ^ n I "^^t-net-net lease" and the city agrees that the rentals provided for therein shall be an absolute net return to the authority, free and clear of any expenses, charges, or setoffs whatsoever.
OS7/A9
The city shall be deemed in default under the lease if it fails to pay rental within 15
days of its due date or fails to keep other terms or conditions within 25 days after due
notice, if it abandons the premises or assigns or transfers its interest without the
written consent of the authority, or in the event of its voluntary or involuntary
bankruptcy or reorganization.
Should default continue beyond 30 days from notice of such default, the authority may,
with or without terminating the agreement, re-enter the project, eject aU parties, and
re-let the property as the agent and for the account of the city. In case of such
re-letting, the rentals shah be appUed first to the expenses of re-letting and collection,
and thereafter toward payment of all sums due or to become due to the authority
hereunder. If rentals do not produce sufficient sums, the city shall pay to the authority
semiannually any cumulative net deficiency existing on the date when rentals are due
under the lease agreement.
r OS7/A10
* -> "'^ . • •
CARLSBAD PARKING AUTHORITY
The authority was established April 19, 1966 by Resolution No. 1264 of the Carlsbad City
Council in accordance with the provisions of the Parking Law of 1949 (Part 2 of Division 18
Section 32500ff, of the Streets and Highways Code of the State of California). The authority
IS governed by a five-member commission appointed by the city council.
The authority executed a lease agreement with the city on August 21, 1969, and issued
$1,535,000 Parking Revenue Bonds in September 1969 for acquisition and financing of
public parking faciUties operated in conjunction with Plaza Camino Real, a regional
shopping center in the City of Carlsbad. The parking lot property was deeded to the
parking authority on October 21, 1969. Bond service on this issue is paid from
revenues of the parking authority in the form of lease payments by the City of
Carlsbad. On the authority executed another lease agreement with
the city for the acquisition of additional public parking facilities operated in conjunction with Plaza Camino Real.
Financial data on the authority can be found elsewhere in this Official Statement under
the heading "Organization and Financial Information." THE PROJECT
As part of its Phase II construction program. Plaza Camino Real regional shopping center
added parking for approximately 2,603 additional cars. Under the terms of an agreement
between the City of Carlsbad, the Parking Authority, and Plaza Camino Real (developer)
dated November 5, 1975, and subsequent supplements, the parking authority wiU pay the
developer as consideration for the conveyance of the parking faciUties an amount equal to
the actual sums expended to construct the new parking area improvements, but in no
event more than the net proceeds of the bonds sold. The agreement provides for a maxi-
mum bond issue of $1,500,000. Table 1 shows the allocation of bond proceeds
TABLE 1
CARLSBAD PARKING AUTHORITY
ALLOCATION OF BOND PROCEEDS
Bond proceeds principal amount $1 50o oOO
Less discount (maximum possible: 8%) 'l2o'o00
OA * ^ $1,380^000
Bond reserve fund 156 000
Working capital fund 1*500
Estimated issuance expenses 53*500
Net proceeds $1.169;000
The original off-street parking for 3,128 cars was provided and financed by the
?nJn P^^ parking authority through a similar agreement dated November 14
1969 The parking authority issued revenue bonds in 1969 to finance its aUocated share
of the facility costs.
OS7/A11
PLAZA CAMINO REAL
Plaza Camino Real shopping center, in which May Centers, Inc., is the general partner,
is located on over 90 acres in the northeast corner of Carlsbad. May Centers is a sub-
sidiary of The May Department Stores Company, a national retail organization.
The May Department Stores Company, headquartered in St. Louis, Missouri, is one of
the largest general merchandise retailers in the United States. For the 52 weeks ended
November 1, 1980, the corporation reported sales of $3.1 billion and net income of $111
milUon. In November and December of 1980, sales advanced over $50 milUon from prior-
year levels. The sales and earnings are generated by 133 department stores, 45 discount
stores, 979 shoe stores, and 22 shopping centers located in 38 states.
The Plaza opened in 1969 as a two-level, enclosed, 550,000-square-foot complex containing
two large department stores, about 60 mall shops, and parking for over 3,100 cars. Within
a few years after its opening, the developer planned an expansion of the Plaza. Completion
of Phase II in October 1979 brought the total retail area to 1,138,000 square feet and pro-
vided parking for a total of approximately 5,731 cars. The Plaza has convenient express
highway access in all directions, and is bounded on the north by State Highway 78. Inter-
state 5 passes one mile to the west.
Five leading retailers anchor the Plaza, with a combined area of over 721,000 square feet.
The May Company and J. C. Penney opened during Phase I, and The Broadway, BuUock's,
and Sears were added in Phase II. J. C. Penney and Sears also maintain auto centers in
a portion of their leased areas. The insert following lists the anchor stores and occupied
square feet.
Tenant Square Feet
The Broadway 152.000
Bullock's 115,000
J. C. Penney 156,927
May Company 148,159
Sears 148,958
The Plaza contains 135 maU shops. Woolworth is the largest, with 61,635 square feet of
leased space. Additionally, the mall has 13 tenants leasing over 5,000 square feet, for a
combined total of 80,108 square feet. Of the approximately 280,000 square feet of
leasable mall shop area, 6,000 are currently unleased but under negotiation, leaving the
Plaza over 98 percent occupied.
OS7/A12
ORGANIZATION AND FINANCIAL INFORMATION
Carlsbad is a general law city, incorporated July 16, 1952 and operated under a council-
manager form of government. Four council members and a mayor are elected at large for
staggered four-year terms. The city clerk and city treasurer are the city's other elected
officials. The councU appoints a city manager to carry out its policies.
The city's financial statements are audited annually in conformance with generally
accepted accounting principles as applicable to governmental units. Copies of the city's
audited financial statements are available upon request from the finance director.
Accounting records for the general, special revenue, and debt service funds are
maintained on a modified accrual basis. The capital projects, enterprise, and trust and
agency funds are maintained on an accrual basis.
Tables 2 and 3 show the city's general fund balance sheet and the authority's balance sheet
as of June 30, 1980.
REVENUES AND EXPENDITURES
Table 4 summarizes the city's general fund revenues and expenses for the past four years
and budget year 1980/81. The table also shows the general fund balance. The negative
general fund balance resulted from transfers to other special revenue funds.
The largest category of general fund revenue is taxes, amounting to $6,557,781 and 68
percent of total revenue in 1979/80. The largest single source of revenue is sales and
use taxes amounting to almost $3 million followed by property taxes amounting to almost
$2.5 million. These two revenue sources accounted for 31 percent and 26 percent,
respectively, of total revenue. The second-largest category of revenue is inter-
governmental revenue, which includes state subventions such as vehicle Ucenses, Uquor
and cigarette taxes, and homeowner and business inventory tax reUef.
Expenditures from the general fund are segregated into four categories. General
government is the largest category, accounting for almost one-half of total disbursements.
Public safety accounts for about 34 percent of the total.
Table 5 shows combined changes in aU fund balances for the year ending June 30, 1980.
The special revenue funds category accounts for subventions, grants, and capital res'erves.
The sewer utility is also carried as a special revenue fund.
The water department is maintained as a separate enterprise of the city. The city obtains
water from the faciUties of the San Diego Water Authority and the Metropolitan Water District
of Southern California. For the year ending June 30, 1980, the utility showed a net income
of $395,685 on a gross income of $1,806,817. The retained earnings balance as of the same
date was $3,088,781.
TABLE 2
CITY OF CARLSBAD
GENERAL FUND BALANCE SHEET
June 30, 1980
OS7/A13
Assets
Cash
Investments, at cost
Accounts and taxes receivable
Accrued interest receivable
Due from other funds
Prepaid expenses
Total Assets
($ 453,016)
12,997
341,689
205,746
76,464
70.600
$ 254,480
Liabilities, Encumbrances, and Fund Balances
Accounts payable
Encumbrances outstanding
Reserves for continuing appropriations
Fund balance
Total Liabilities and Fund Balance
$ 207,967
243,713
1,216,190
(1.413.390)
$ 254,480
Source: City of Carlsbad 1979/80 financial statements.
TABLE 3
CARLSBAD PARKING AUTHORITY
COMBINED BALANCE SHEET
June 30, 1980
Assets
Cash and investments with trustee
Cash in bank
Future basic lease payments to be received
Less: Unearned finance charges
Total Assets
$ 575,200
379
2,249,000
(974.000)
$1,850,579
Liabilities and Fund Balances
Revenue bonds payable
Fund balances
Total Liabilities and Fund Balances
$1,275,000
575,579
$1,850,579
Source: Carlsbad Parking Authority financial statements.
TABLE 4
CITY OF CARLSBAD
GENERAL FUND REVENUES AND EXPENDITURES AND FUND BALANCE
1976/77 1977/78 1978/79 1979/80
Budget
1980/81
Revenues
Taxes:
- Property taxes
- Sales and use taxes
- Transient lodging taxes
- Franchise taxes
- Business license taxes
- Real property transfer taxes
Licenses and permits
Intergovernmental revenue:
- Vehicle license tax
- Other
Charges for services
Fines and forfeitures
Earnings on investments
Other revenues
Total Revenues
Expenditures & Encumbrances
General government^
Public safety
Public works
Leases
Total Expenditures & Encumbrances
Fund Balance, July 1
$2,777,327
1,402,841
397,832
96,818
141,050
82,265
613,427
287,356
280,076
571,385
139.480
231,044
89.054
$2,857,145
1,846,324
940,331
229,058
$5,872,858
$1,604,147
$3,299,298
1,967,968
370,138
111,271
151,768
130,724
520,603
377,488
563,539
572,679
125,964
393,322
167,559
$3,481,038
2,407,823
1,200,252
211.890
$7,301,003
$3,077,895
$1,460,418
2.389,832
499,448
141,189
185,845
142,971
119,202
494,190
357,285
531,807
129,504
621,493
106,921
$7,109,955 $8,752,321 $7,181,105
$3,945,326
2,634.839
1,366,437
217.481
$8,164,083
$3,971,787
1
2 Includes library, parks and recreation, and nondepartmental categories.
$2,326,803 transferred to special revenue funds. See Table 5.
$2,475,987
2,969,586
578,233
175,257
242,342
116,376
181.839
634,354
417,180
730,032
152,171
823,414
101.259
$9,598,030
$4,212,245
2,994,443
1,406,141
225,754
$ 3.100.000
3,550,000
600,000
235,000
300,000
150,000
300.000
572,000
406.000
713.000
140.000
575.000
100,000
$10,741,000
$ 5,540,811
3,568,337
1,629,151
232,000
$8,838,583 $10,970,299
($ 30,246) ($ 1.413.390)2
Source: City of Carlsbad financial statements.
TABLE 5
CITY OF CARLSBAD
COMBINED STATEMENT OF CHANGES IN FUND BALANCES, ALL FUNDS
June 30. 1980 Sewer
General
Fund
Special
Revenue
Funds
Debt
Service
Funds
Construction
(Capital
Projects Fund)
Total
All
Funds
($ 20.353) $4,210,559 $146,465 $1,193,883 $5,530,594
(9.893) 14,000 --— 4,107
($ 30.246) $4,224,599 $146,465 $1,193,883 $5,534,701
759,447 482,940 13.583 (63,440) 1,192,530
20.264 123,973 — — 144,237
163,948
(2,326,803)
(796,739)
13.184
2,326,803*
—
(1,901.916) (2.534,707)
13.184
($1,413,390) $6,374,760 $160,048 ($ 771.473) $4,349,945
Balances, 6/30/79
Prior year's adjustments:
accounts & taxes receivable
Restated Balances. 6/30/79
Excess (deficiency) of revenues
over expenditures
Adjustment to prior year's
encumbrances
Change in reserve for continuing
appropriation
Funds transferred to city control
Interfund transfers
Balances. 6/30/80
*$520.000 transferred to the Maintenance and Operation Reserve Fund and $1,806,803 transferred to the
Capital Construction Reserve Fund.
Source: City of Carlsbad 1979/80 financial statements.
r 037/A15
SALES Tibi REVENUE
California cities have long had authority to levy and collect local sales taxes In 1955
however, the Bradley-Burns Uniform Local Sales and Use Tax Law was adopted. This .
measure extended the authority to impose local sales taxes to counties, and permitted
cities and counties to contract with the state for administration of the tax.
Because of the advantages of state coUection of local sales tax revenue, aU California
cities currently levy local sales taxes under the provisions of Bradley-Burns which
requires, among other things, that city sales taxes be imposed on a uniform basis at 1
percent on the retaU sale or use of tangible personal property (including motor vehicle
fuel) within the city. Although local sales tax revenue is collected by the state under
contract with the State Board of EquaUzation, the tax is imposed locally and revenues
are returned on a monthly basis to cities where the sale or use is made. The City of
Carlsbad receives the fuU levy of 1 percent of the value of retail sales made within its
boundaries.
Almost one-third of the city's revenue comes from sales and use taxes. It is the largest
revenue source for the city since the imposition of Article XIIIA (Proposition 13) in
1978/79. In 1979/80 this revenue amounted to $2,969,586. Past experience shows that
one third of total sales tax revenue came from Plaza Camino Real, one third from Car
Country (Carlsbad's 8-dealer automobUe shopping center), and one third from the
remainder of the city. Sales tax revenue from the Plaza is expected to be a larger
share of the total revenue because the completion of Phase II in October 1979, more than
doubled the retail area of the Plaza.
The Plaza's one-third share of total sales tax revenue amounted to approximately
$1 million in fiscal 1980, more than triple the maximum debt service of $305,400 on the
combined Parking Authority bond issues. For city business license tax purposes Plaza
merchants estimated sales at $70.4 miUion for 1979 and $103 milUon for 1980. The 1980
estimate includes 3 months' sales only for Bullock's, one of five anchor stores in the
Plaza.
LONG-TERM DEBT
Table 6 shows combined annual debt service on the parking authority's 1969 and 1981
revenue bond issues. Combined maximum annual debt service is estimated at $305,400.
TABLE 6
CARLSBAD PARKING AUTHORITY
COMBINED DEBT SERVICE
Parking Revenue
Fiscal Fiscal
Year 1969 1981* Total Year
1981/82 $126,263 $120,000 $246,263 1991/92
19fi2/83 123,150 120,000 243,150 1992/93
1983/84 120,025 150,000 270,025 1993/94
1984/85 116,900 157,600 274,500 1994/95
1985/86 137,975 164,400 302.375 1995/96
1986/87 133,250 160,400 293,650 1996/97
1987/88 128,506 166,400 294,906 1997/98
1988/89 123,744 161,600 285,344 1998/99
1989/90 118,981 156,800 275,781 1999/00
1990/91 138,400 167,000 305,400 2000/01
Parking Revenue
1969 1981* Total
$132,000
125,600
119,200
137,000
129,000
$161,000
155,000
174,000
166,000
158,000
150,000
167,000
157,000
147,000
162,000
$293,000
280,600
293,200
303,000
287,000
150,000
167,000
157,000
147,000
162,000
*Estimated.
OS7/A16
Table 7 shows the city's long-term general obligation bonds and water revenue bonds
outstanding as of February 10, 1981. Water revenue bonds are secured by a Uen on
gross revenues of the water department. Authorized but unissued 1970 water revenue
bonds amount to $575,000.
TABLE 7
CITY OF CARLSBAD
LONG-TERM DEBT
Outstanding
February 10, 1981
General Obligation
1962 Sewer Bonds, Series A $ 310,000
1962 Sewer Bonds, Series B 600,000
1962 Sewer Bonds, Series C 240,000
1966 Library Bonds 180,000
Total General Obligation $1,330,000
Water Revenue
Waterworks Revenue Bonds, 1958 $ 332,000
Waterworks Revenue Bonds, 1960 215,000
Waterworks Revenue Bonds, 1970, Series A 810.000
Total Water Revenue $1,357,000
LEASES
Under a joint powers agreement dated October 1, 1967, the city participated with the
county in the Carlsbad Building Authority for the construction of a civic center for use
by the city. The lease obUgates the city to pay an annual base rental of $36,000 over
the 40-year lease period, after which title to the property vests in the city.
The city participated with the City of Oceanside under an agreement dated May 16, 1978
for the purchase of an automated circulation system for their libraries. The city's
original share of the purchase price was $102,025 with a five-year lease-purchase
agreement.
The city has negotiated a 50-year lease with the City of Oceanside for pubUc parking near
Plaza Camino Real. The city wiU make rental payments of $70,000 in each of the first 10
years and $1 in each of the remaining 40 years.
The city has agreed to pay the parking authority an annual rental of $138,400 plus
operating costs for the parking facilities covered by the 1969 bonds. The city also pays
an annual rental of $54,658, through 1983, to the Tri-City Auto Dealers Association for
the construction of a road for use by the city. As of June 30, 1980, the city has total
future minimum rentals under these two operating leases of $2,274,574.
OS7/A17
Information about assessed valuation and taxation in the city is presented for information
only, as the bonds are secured by a pledge of revenues derived by the authority in the
form of lease payments by the city.
ASSESSED VALUATION
The San Diego County Assessor assesses all property within the city except utility
property, which is assessed by the State Board of Equalization. State law requires that
aU property subject to general property taxation be assessed at 25 percent of full cash
value. Due to the changes in assessments under Article XIIIA, the county assessment
roll no longer purports to be proportional to fuU cash value.
The property tax on $1,750 of the assessed valuation of owner-occupied dwelling units is
an exemption to the homeowner, and is reimbursed to local taxing agencies by a state
subvention. Prior to 1980/81, a similar tax reUef method was applied to 50 percent of
the assessed valuation of business inventories. As of 1980/81, business inventories are
fully tax-exempt and have been removed from the tax rolls.
Table 8 shows a five-year history of Carlsbad's assessed valuation. AU assessed
valuations shown include business inventory exemptions prior to 1980/81 and homeowners'
exemption for aU years. Over the five years shown, the city's assessed valuation has
increased at an average annual rate of about 23 percent. The assessed value of
homeowner exemptions in the city in 1980/81 is $12,097,050.
TAX LEVIES AND DELINQUENCIES
Table 8 also shows the city's secured tax levy and delinquencies for each of the past
five years. Beginning in 1978/79 tax levy delinquencies for the city's general obUqation
bonds have been less than 2 percent.
.TABLE 8
CITY OF CARLSBAD
ASSESSED VALUATION AND DELINQUENCIES
Fiscal
Year
Total
Assessed
Valuation^
Percent
Increase
Secured
Tax Levy
Delinquent, June 30
Amount Percent
1976/77
1977/78
1978/79
1979/80
1980/81
$164,976,925 — %
207,352,121 25.7
258,541,664 24.7
328,957,936 27.2
373,166,033 13.4
$2,126,155
2,733,328
139,7032
129,2382
$61,908
93,861
2,055
2,520
1
2
Source:
2.91%
3.43
1.47
1.95
Includes business inventory exemptions prior to 1980/81 and homeowners exemptions.
Debt service levy only.
Compiled in cooperation with California Municipal Statistics, Inc.
OS7/A18
In accordance with the California Revenue and Taxation Code, the San Diego county Tax
Collector collects secured tax levies for each fiscal year. One-half of the taxes are due
November 1 and become delinquent December 10; the second installment is due February 1
and becomes delinquent April 10. A 6 percent penalty is added to any late installment.
On June 30, delinquent properties are sold to the state.
Property owners may redeem property upon payment of deUnquent taxes and penalties .
Properties sold to the state incur a redemption penalty of one percent of the taxes due
per month.
Properties may be redeemed under an installment plan by paying current taxes plus 20
percent of delinquent taxes for five years. Interest accrues at one-half of one percent
per month on the unpaid balance.
If no payments have been made on delinquent taxes at the end of five fiscal years, the
property is deeded to the state. Such properties may thereafter be conveyed to the
county tax collector as provided by law.
CALIFORNIA CONSTITUTION ARTICLE XIIIA
Under state law all properties are generally assessed at 25 percent of full cash value.
California voters, on June 6, 1978, approved an amendment (commonly known as both
Proposition 13 and the Jarvis-Gann Initiative) to the CaUfomia Constitution. This amend-
ment, which adds Article XIIIA to the California Constitution, among other things,
defines full cash value to mean "the county assessor's valuation of real property as shown
on the 1975/76 tax bill under 'full cash value,' or thereafter, the appraised value of real
property when purchased, newly constructed, or a change in ownership has occurred
after the 1975 assessment period." This full cash value may be increased at a rate not
to exceed 2 percent per year to account for inflation. The amendment further Umits the
amount of any ad valorem tax on real property to 1 percent of the fuU cash value, or 4
percent of the assessed value, except that additional taxes may be levied to pay debt
service on general obligation bonds approved by the voters prior to July 1, 1978.
In the past, properties in San Diego County have been subject to taxation at varying
rates by municipalities and special districts. Each entity has set its budgeted expenses,
and then determined, subject to certain legal limitations, the property tax rate which
would raise sufficient funds. As a result of the amendment, the maximum tax rate is
$4.00 per $100 of assessed valuation, plus the additional amount necessary to cover
certain outstanding indebtedness.
The California legislature has adopted legislation apportioning the property tax raised by
the $4.00 tax rate among the various taxing agencies within each county and allocating
surplus state funds to local government. The amendment does not alter the levy or
collection of taxes for debt service on general obligations authorized by the voters prior
to July 1, 1978.
APPROPRIATIONS LIMIT
An initiative constitutional amendment entitled "Limitation of Government Appropriations"
was approved by California voters on November 6, 1979. Under the amendment, which
adds Article XIIIB to the California constitution, state and local government agencies are
subject to an annual "appropriations limit," and are prohibited from spending
"appropriations subject to limitation" above that limit. "Appropriations subject to
limitation" consist of "tax revenues," state subventions, and certain other funds
(together herein referred to as proceeds of taxes). The amendment does not affect the
appropriation of money excluded from the definition of "appropriations subject to
limitation," such as debt service on indebtedness existing or authorized by January 1,
1979, or subsequently authorized by the voters and appropriations mandated by the
court. The amendment also excludes from limitation the appropriation of proceeds from
regulatory licenses, user charges, or other fees to the extent that such proceeds equal
"the costs reasonably borne by such entity in providing the regulation, product, or
OS7/A19
TABLE 9
CITY OF CARLSBAD
DIRECT AND OVERLAPPING BONDED DEBT
Percent
Applicable
Debt
as of
12/16/80
San Diego County
San Diego County Building Authorities
San Diego County Water Authority
Metropolitan Water District
Oceanside-Carlsbad Community College District
Carlsbad Unified School District (various issues)
Carlsbad Unified School District Authority
San Marcos Unified School District (various issues)
San Dieguito Union High School District (various issues)
Encinitas Union School District (various issues)
Other school districts
Tri-City Hospital District
North San Diego Hospital District & Authority
Leucadia County Water District
San Marcos County Water & Improvement
Districts #1, #2, #6
Carlsbad Municipal Water District Improvement
Districts #1, #2, #3, #4
Olivenhain Municipal Water District Improvement
District #1
City of Carlsbad
City of Carlsbad Building Authority
City of Carlsbad Parking Authority
Total Gross Direct and Overlapping Bonded Debt
3.472%
3.472
3.620
0.555
25.089
83.254-90.079
90.005
9.653-13.494
16.377
24.926-32.233
various
28.876
0.327
52.836
0.126-3.984
85.693-94.981
33.961
100.
100.
$ 18,749
4,739,280
1,712,622
2,801,190
263,435
1,574,572
2,308,628
684,377
1,034,865
600,996
32,759
3,255,769
67,933
604,972
61,409
1.739,148
787,895
1,340,000
300,000
2,725.000*
$26,653,599
Ratios to;
Assessed
Valuation
$373,166,033
January 1, 1980
Population
35,500
Total debt ($26,653,599)
Direct debt ($4,365,000 7.14%
1.17
$750.81
122.96
*Includes $1,500,000 Parking Authority Bonds to be sold February 10, 1981.
Source: Compiled in cooperation with California Municipal Statistics, Inc.
OS7/A20
In general terms, the Initiative provides that the appropriations limit will be based on
certain 1978/79 expenditures and wiU be adjusted annually to reflect changes in cost of
living, population, and transfer of financial responsibUity of providing services from one
government unit to another. The amendment also provides that if an agency's revenues
in any year exceed the amount which is appropriated by such agency in compliance with
the initiative, the excess must be returned during the next two fiscal years by revising
tax rates or fee schedules.
The city's estimate of its 1980/81 appropriations limit is about $15.6 miUion, and
expenditures subject to the limit are about $10.3 million.
OS7/A2r
THE REGION
GENERAL
The City of Carlsbad is located in southern California along the coast in northwestern San
Diego County, 35 miles north of San Diego and 90 miles south of Los Angeles. Interstate 5
the San Diego Freeway, passes through the city paraUeling the coast.
Most of the city is built upon relatively level ground, although there are areas of low rolling
hiUs. The city covers over 34 square miles, with elevations ranging from sea level to 738
feet. The area has a moderate climate year-round. Average annual temperatures range
from 54 to 70 degrees.
The Buena Vista Lagoon, a vdldlife preserve, bounds Carlsbad on the north. Because of
their proximity, Carlsbad and the nearby communities of Oceanside and Vista are coUec-
tively known as the Tri-Cities. The North County area also includes the cities of Escondido
and San Marcos.
POPULATION AND INCOME
According to a 1977 study, the North County area is the fastest-growing area of the
county, with a population of over 400,000 clustered in several geographically defined
communities and miles of open space in between. The North County has a population
o °^ persons per square mile, as compared with the City of San Dieqo with
2,499 persons per square mile.
State Department of Finance estimates put Carlsbad's population at 35,500 as of January 1
1980, almost six times the 6,000 residents the city had when it incorporated in 1952 In
the past four years the city and county have grown at average annual rates of 14 percent
and 3 percent, respectively, as shown in Table 10. Of the five incorporated cities in the
North County, Carlsbad continues to record the highest growth rate
TABLE 10
CITY OF CARLSBAD AND SAN DIEGO COUNTY
POPULATION
Year
(Jan. 1) City of
Carlsbad
Percent
Increase
San Diego
County
Percent
Increase
1976 20,950 ~ % 1,591,900 — %
1977 23,600 12.6 1,647,300 3.5
1978 28,200 19.5 1,713,200 4.0
1979 33,600 19.1 1,769,000 3.3
1980 35,500 5.7 1,808,200 2.2
Source: State Department of Finance estimates.
OS7/A22
Sales & Marketing Management magazine's annual Survey of Buying Power reported that
the 1979 median household effective buying income (EBI) in San Diego County was
$16,763. Effective buying income is defined as income remaining after withholding taxes
and Social Security deductions. Table 11 compares EBI for San Diego County, the State
of California, and the United States since 1975. Comparative data is not available for
the City of Carlsbad.
TABLE 11
SAN DIEGO COUNTY, STATE OF CALIFORNIA, AND UNITED STATES
MEDIAN HOUSEHOLD EFFECTIVE BUYING INCOME
1975 1976 1977 1978 1979
San Diego County $11,876 $12,879 $14,101 $15,341 $16,763
State of California 13,206 14,299 15,629 17,186 18,811
United States 12,824 13,781 15,016 16,231 17,924
Source: Sales and Marketing Management Survey of Buying Power.
picture here
OS7/A23'
TAXABLE""SALES
Table 12 summarizes trade outlets and retail sales based on reports from the State Board
of EquaUzation. Commercial activity is concentrated in Plaza Camino Real shopping '
center and Car Country. Auto dealers and suppUers lead Carlsbad's 1979 retail sales
with over $79 million, followed by general merchandise ($42 milUon), and eating and
drinking establishments ($26 milUon). Bmlding materials and farm implements have
shown the highest average annual growth rate, 50 percent since 1975.
TABLE 12
CITY OF CARLSBAD
TAXABLE SALES BY CATEGORY ($000)
1975 1976 1977 1978 1979
Trade Outlets
Retail stores $ 250 $ 255 $ 283 $ 300 $ 345
All other outlets 246 304 364 435 546
Total, All Outlets $ 496 $ 559 $ 647 $ 735 $ 891
Retail Stores
Apparel $ 8,307 $ 10,093 $ 11,709 $ 13,792 $ 16,670
General merchandise 23,516 26,973 30,900 34,309 42,000
Drug * * * * *
Food 4,490 5,710 6,782 8,816 10,360
Packaged liquor 1,126 1,490 1,893 2,187 2,071
Eating and drinking 13,398 15,905 19,324 22,290 26,019
Furniture and appliances 2,565 3,536 3,607 4,439 6,104
Building materials and
farm implements 1,361 1.342 1,743 2,578 7,020
Auto dealers and supplies 18,061 23,184 49,811 68,608 79,244
Service stations 6,251 7,305 8,980 9,540 11,993
Other retail 9,593 11.393 16,666 18,538 24,787
Total Retail $88,668 $106,931 $151,415 $185,097 $226,268
Other taxable 8,434 11,083 14,965 17,753 22,871
Total Taxable $97,102 $118,014 $166,380 $202,850 $249,139
Percent Increase — 21.5% 41.0% 21.9% 22.8%
*Not disclosed.
Source: State Board of Equalization,
OS7/A24
Table'13 compares taxable sales of the five incorporated North County cities, the City of
San Diego, and San Diego County, Carlsbad has the second-highest average annual
growth rate in taxable sales—almost 27 percent since 1975, The county has had an
average annual growth rate in taxable sales for the years shown of 16 percent.
TABLE 13
NORTH COUNTY. CITY OF SAN DIEGO, AND SAN DIEGO COUNTY
TOTAL TAXABLE SALES ($000)
1975 1976 1977 1978 1979
North County
Carlsbad $ 97,102 $ 118,014 $ 166,380 $ 202,850 $ 249,139
Escondido 272,189 326,541 416,940 467,771 528,929
Oceanside 130,447 155,394 182,280 204,999 223,699
San Marcos 32,887 51,526 68,658 75,468 93,369
Vista 58,511 73,324 87,327 96,934 110,010
City of San Diego 2,397,337 2,697,408 3,272,139 3,725.441 4.298.802
Total San Diego County $4,740,460 $5,395,786 $6,619,403 $7,564,532 $8,652,093
Total County Percent Increase — 13.8% 22,7% 14,3% 14,4%
Source: State Board of Equalization.
EMPLOYMENT
The San Diego Standard Metropolitan Statistical Area (SMSA) mcludes all of San Diego
County, Annual average employment statistics for the county are summarized in
Table 14. The California Employment Development Department estimated total employment
in the county in 1979 at 646,600,
Services continue to dominate the SMSA, accounting for 22 percent of the total
employment. Government (21,5 percent) and retail trade (18,8 percent) are the
next-largest employment sectors. From 1975 through 1979, total employment in San Diego
County grew at an average annual rate of 7.2 percent. Increases were recorded in all
employment sectors except government and agriculture, which decreased slightly.
The North Coastal labor market area includes Carlsbad, Oceanside, Fallbrook, and Vista.
Employment in this area in 1978 was estimated at 39,700, and its largest employment
sectors paralleled those of the county.
TABLE 14
SAN DIEGO COUNTY
EMPLOYMENT AND UNEMPLOYMENT DATA (THOUSANDS)
OS7/A25
1975 1976 1977 1978 1979
Employment by Place of Work
Construction & mineral extraction 23.6 27.3 33.7 38.7 41.4
Manufacturing:
Durable 57,0 56.8 60,8 69,1 81.0
Nondurable 14,9 15.8 17,0 19.4 20.4
Transportation & public utilities 22,5 22.8 24,1 26.0 27.7
Trade:
Wholesale 17.2 18,5 19,8 21.7 24.0
Retail 90,9 97,0 105,3 117.7 121.3
Finance, insurance & real estate 24.6 26,7 29,8 33.1 37.0
Services 99.6 104,9 116,8 132.2 142.4
Government:
142.4
Federal 39.2 39,9 40.0 40.4 40.2
State & local 88.1 90.7 95.9 98.6 98.6
Agriculture, forestry & fisheries 11.7 11.3 11.9 13.1 12.7
Total Wage and Salary Employment 489.3 511.7 555.1 610.0 646.6
Labor Force by Place of Residence
Civilian labor force 576.3 602.8 651.4 697.9 728.5
Employment 516.4 542.0 593.1 649,4 682.8
Unemployment 59.9 60.8 58.3 48.5 45.7
Unemployment Rate 10.4% 10.1% 9.0% 6.9% 6.35
Source: California Employment Development Department.
MAJOR EMPLOYERS
Table 15 lists the Carlsbad area's largest employers. Of the 30 manufacturing plants in
the area, Hughes Aircraft Company is the largest employer (1,100 employees), followed
by Burroughs Corporation, with 700 employees. Electronics firms predominate the
manufacturing category. Plaza Camino Real shopping center leads the nonmanufacturing
category with 1,500 employees. The Plaza is discussed elsewhere in this Official
Statement.
La Costa Hotel & Spa, the second-largest employer in Carlsbad, employs 1,300 at its
resort. According to the United States Travel Service, La Costa has an impact of $100
miUion on the North County's economy. In 1979 the resort had a payroll of about
$10 million, and paid $429,000 in room tax to the City of Carlsbad. Sales tax returned
to the city amounted to $102,000.
OS7/A26
TABLE 15
CARLSBAD AREA
LARGEST EMPLOYERS
Firm Product/Service
Number of
Employees
Manufacturing
Hughes Aircraft Company.
Industrial Products Division
Burroughs Corporation
Oak Industries
Summa Corporation (Hughes
Helicopter Division)
Sargent Industries
Eaton-Leonard Corporation
Dyna Med Inc.
Beckman Instruments
Magnedyne Inc.
Anthony Industries (Pool Division)
Nonmanufacturi ng
Plaza Camino Real
La Costa Hotel & Spa
Tri-City Hospital
Mira Costa College
Car Country Auto Dealers
Frazee Flowers
San Diego Gas & Electric, Encina
Army & Navy Academy
electronic components
computer components
electronic components
assembly/testing
industrial seals
bending machines
emergency medical products
microbics operation
electronic motors
swimming pools & related equipment
shopping center
hotel and health spa
district hospital
community college
car dealers - all major agencies
flower growing & processing
power generation
private junior/senior high school
Source: City of Carlsbad Chamber of Commerce.
1,100
700
400
300
280
220
160
150
90
75
1,500
1,300
1,200
520
460
450
150
100
CAMP PENDLETON
Nearby Camp Pendleton Marine Corps Base is the home of the famous U.S. Marine Corps
First Division and other Marine organizations. Acquired in 1942, the 133,000-acre
facility provides Marines a wide range of training facilities. The base employs a
combined workforce of 34,000 civilian and military personnel, with a payroll of $235
milUon. The approximately 44,000 Marines and their families living at the base are an
important part of the economy of Carlsbad and the North County.
BUILDING ACTIVITY
Table 16 summarizes buUding activity in Carlsbad from 1975 through August 1980.
Building permit valuation reached a high of $145.8 million in 1977. A sewer moratorium
was in effect from April 1977 through June 1980 and is correspondingly reflected in
decreased building permit valuations.
Approximately 2,000 acres in Carlsbad are zoned for light, medium, and heavy industry.
Another 550 acres of planned industrial development are currently before the city and
will ultimately provide up to 15,000 jobs.
TABLE 16
CITY OF CARLSBAD
BUILDING ACTIVITY AND VALUATION
OS7/A27'
8 months
1975 1976 1977 1978^ 1979^ 1980^
Residential Building Permits Issued
Single-family dwellings
Multiple-family dwellings
Permit Valuation ($000)
Residential
Commercial
Industrial
Total Building Valuation2
261 1.574 2,143 98 136 80
74 225 619 48 38 77
335 1,799 2,762 146 174 157
$13,739 $ 73,574 $139,280 $11,632 $18,034 $14,581
2,418 5,005 4,420 18,128 11,148 5,447
2,177 2.956 869 2,738 998 722
$20,471 $100,674 $145,829' $34,706 $35,716 $25,567
1 - Reflects sewer moratorium which began April 1977 and extended through June 1980.
2 - Includes alterations, additions, and other valuations.
Source: Security Pacific Bank.
UTILITIES AND COMMUNITY SERVICES
As a unit of general government, the City of Carlsbad provides a variety of municipal
services. Under the provisions of a joint powers agreement with Vista, San Marcos,
Encinitas, Leucadia, and Buena, the city provides regional sewerage service. Total sewer
plant capacity is 13.75 milUon gallons per day (mgd), of which Carlsbad is allocated
3.43 mgd. The Encina regional sewage treatment plant is currently being upgraded and
expanded. When these improvements are completed in late 1983, the City of Carlsbad wiU
have an additional 570,000 gallons per day (gpd) of available sewage capacity. This addi-
tional capacity wiU accommodate approximately 2,300 dwelling units. Currently the city
has sewage capacity available to serve about 1,200 dweUing units. In addition, construc-
tion is nearly complete on a 1.2 million gpd sewage treatment plant to serve about 5 000
dwelling units in the northeast portion of the city.
Carlsbad serves its citizens with 49 firefighters and paramedics, along with 15 emergency
vehicles. The city poUce department employs 51 officers plus 25 reservists. Carlsbad is
served by the two hospitals of the Tri-City Hospital District, with a total capacity of 231
beds.
The city operates a pubUc library containing more than 120,000 volumes and an audio/visual
department. It also operates 12 parks. Six miles of sandy beach, and Agua Hedionda
Lagoon, provide water-related recreational opportunities.
The Carlsbad Unified School District provides public education at five elementary
schools, one junior high school, one high school, and one continuing-education high
school. Six private schools, including the Army-Navy Academy for grades 7-12, provide
alternative education.
/ OS7/A28
Private aviation services are available at Palomar Airport, with commercial services
provided by Imperial Airlines, Golden West Airlines and Air Bahia, The airport lies
within the city limits and is operated by the county as a general aviation airport,
A second runway is planned for construction during the early 1980's to complement the
existing 4,700-foot runway. Hughes helicopters are assembled and tested at the airport.