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; ; 2015-16 to 2030 CIP Technical Appendix;; 2016-06-30
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ity Treasurer8/23/16KEYElectedCouncil AppointedCouncil AppointedOrganization ChartCity AttorneyCelia BrewerCity CouncilCity ClerkCommunity ServicesClay PhillipsInterim Assistant City ManagerArtsCommissionBeachPreservationCommitteeSeniorCommissionParks & RecCommissionLibrary BoardofTrusteesHistoricPreservationCommissionHousingCommissionTraffic SafetyCommissionPlanningCommissionCarlsbad TourismB.I.D. AdvisoryBoardCarlsbad Golf Lodging B.I.D. Advisory BoardCity ManagerKevin CrawfordSpecial ProjectsGary BarberioAssistant City ManagerAdministrative Services Chuck McBrideDirectorPublic Safety Neil GallucciPolice ChiefMike DavisFire ChiefAssistant to the City ManagerJason HaberCommunity Outreach & EngagementKristina RayPublic Works Elaine LukeyActing DirectorCommunity & Economic DevelopmentLibrary & Cultural ArtsParks & RecreationFinance Human ResourcesInformation TechnologyEnvironmental ProgramsGeneral ServicesTransportation Engineering & ConstructionUtilities16 Financial Section Financial Section City CouncilCity of CarlsbadCarlsbad, California ,1'(3(1'(17 $8',7256¶ 5(3257 5HSRUW RQ WKH )LQDQFLDO 6WDWHPHQWV We have audited the accompanying financial statements of the governmental activities, thebusiness-type activities, each major fund, the aggregate remaining fund information of thegeneral fund of the City of Carlsbad, California, as of and for the year ended June 30, 2016, andthe related notes to the financial statements, which collectively comprise the City’s basicfinancial statements as listed in the table of contents. 0DQDJHPHQW¶V 5HVSRQVLELOLW\ IRU WKH )LQDQFLDO 6WDWHPHQWV Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. $XGLWRU¶V 5HVSRQVLELOLW\ Our responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in *RYHUQPHQW $XGLWLQJ 6WDQGDUGVissued by the Comptroller General of the United States. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the entity’s preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity’s internal control.Accordingly, we express no such opinion. An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinions. 17 City CouncilCity of Carlsbad, CaliforniaPage Two 2SLQLRQV In our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities, the business-type activities, eachmajor fund, and the aggregate remaining fund information of the City of Carlsbad as of June 30,2016, and the respective changes in financial position and, where applicable, cash flows and thestatement of revenues, expenditures and changes in fund balance - budget to actual of the generalfund and major special revenue funds for the year then ended in accordance with accountingprinciples generally accepted in the United States of America. 2WKHU 0DWWHUV 5HTXLUHG 6XSSOHPHQWDU\ ,QIRUPDWLRQ Accounting principles generally accepted in the United States of America require that the 0DQDJHPHQW·V 'LVFXVVLRQ DQG $QDO\VLV WKH 6FKHGXOH RI &KDQJHV LQ 1HW 3HQVLRQ /LDELOLW\ DQG 5HODWHG 5DWLRV 'XULQJ 0HDVXUHPHQW 3HULRG DQG 6FKHGXOH RI 3ODQ &RQWULEXWLRQV be presented tosupplement the basic financial statements. Such information,although not a part of the basicfinancial statements, is required by the Governmental Accounting Standards Board whoconsiders it to be an essential part of financial reporting for placing the basic financial statementsin an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standardsgenerally accepted in the United States of America, which consisted of inquiries of managementabout the methods of preparing the information and comparing the information for consistencywith management’s responses to our inquiries, the basic financial statements, and otherknowledge we obtained during our audit of the basic financial statements. We do not express anopinion or provide any assurance on the information because the limited procedures do notprovide us with sufficient evidence to express an opinion or provide any assurance. 2WKHU ,QIRUPDWLRQ Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the City of Carlsbad's basic financial statements. The combining andindividual nonmajor fund financial statements and schedules, the introductory section and thestatistical section are presented for purposes of additional analysis and are not a required part ofthe basic financial statements. The combining and individual nonmajor fund financial statementsand schedules are the responsibility of management and were derived from and relate directly tothe underlying accounting and other records used to prepare the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the basicfinancial statements and certain additional procedures, including comparing and reconciling suchinformation directly to the underlying accounting and other records used to prepare the basicfinancial statements or to the basic financial statements themselves, and other additionalprocedures in accordance with auditing standards generally accepted in the United States ofAmerica. In our opinion, the combining and individual nonmajor fund financial statement andschedules are fairly stated, in all material respects, in relation to the basic financial statements asa whole. The introductory section and the statistical section have not been subjected to theauditing procedures applied in the audit of the basic financial statements, and accordingly, we donot express an opinion or provide any assurance on it. 18 City CouncilCity of Carlsbad, CaliforniaPage Three 2WKHU 5HSRUWLQJ 5HTXLUHG E\ *RYHUQPHQW $XGLWLQJ 6WDQGDUGV In accordance with *RYHUQPHQW $XGLWLQJ 6WDQGDUGV, we have also issued our report datedNovember 21, 2016 on our consideration of the City of Carlsbad's internal control over financialreporting and on our tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements and other matters. The purpose of that report is to describe thescope of our testing of internal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with *RYHUQPHQW $XGLWLQJ 6WDQGDUGV in considering City of Carlsbad’s internal control over financial reportingand compliance. Irvine, CaliforniaNovember 21, 2016 19 0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV 0DQDJHPHQWRIWKH&LW\RI&DUOVEDG ³FLW\´ SURYLGHVUHDGHUVWKLVRYHUYLHZDQGDQDO\VLVRIWKHILQDQFLDODFWLYLWLHVRI WKHFLW\IRUWKHILVFDO\HDUHQGHG-XQH7KHLQWHQWLVWRDVVLVWWKHUHDGHURIWKHVHILQDQFLDOVWDWHPHQWVLQEHWWHU XQGHUVWDQGLQJWKHLPSDFWRIILQDQFLDOGHFLVLRQVPDGHE\WKHFLW\7KLVDQDO\VLVZLOOIRFXVRQWKHVLJQLILFDQWFKDQJHV LQDQHIIRUWWRH[SODLQWKHFLW\¶VRYHUDOOILQDQFLDOFRQGLWLRQ7KHLQIRUPDWLRQSUHVHQWHGKHUHVKRXOGEHFRQVLGHUHGLQ FRQMXQFWLRQZLWKWKHDGGLWLRQDOLQIRUPDWLRQIXUQLVKHGLQWKHOHWWHURIWUDQVPLWWDO 2YHUYLHZRIWKH)LQDQFLDO6WDWHPHQWV 7KLVVHFWLRQRIWKHDQQXDOUHSRUWFRQVLVWVRI IRXU SDUWV ±management’s discussion and analysis WKLV VHFWLRQ WKH EDVLFfinancial statements required supplementary information DQG DQ RSWLRQDO VHFWLRQ WKDW SUHVHQWVcombining statementsIRUQRQPDMRU JRYHUQPHQWDO IXQGV DQG LQWHUQDO VHUYLFH IXQGV7KHEDVLFILQDQFLDOVWDWHPHQWVLQFOXGH WZRNLQGVRIVWDWHPHQWVWKDWSUHVHQWGLIIHUHQW YLHZVRIWKHFLW\ x 7KH ILUVW WZR VWDWHPHQWV DUH Government-wide 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:DVWHZDWHU *ROIFRXUVH 7RWDOGHSUHFLDWLRQH[SHQVHEXVLQHVVW\SHDFWLYLWLHV &,7<2)&$5/6%$' 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV 1RWH $FFUXHG/LDELOLWLHV $FFUXHGOLDELOLWLHVZHUHDVIROORZVDW-XQH ,QWHUQDOVHUYLFHIXQGVKDYHEHHQLQFOXGHGZLWKJRYHUQPHQWDODFWLYLWLHVRQWKH*RYHUQPHQWZLGH6WDWHPHQWRI1HW3RVLWLRQ Infrastructure Financing Vendors and Salaries and District (IFD) Refuse Miscellaneous Benefits Payable Disposal Total Governmental activities: General Fund 3,867,705 $ 2,447,139 $ 187,042 $ -$ 6,501,886 $ Community Facilities District No. 1 166,514 - - - 166,514 General Capital Construction 1,233,682 - - - 1,233,682 Infrastructure Replacement 450,689 - - - 450,689 Public Facilities Construction 625,633 - - - 625,633 Other Governmental Funds 3,150,946 43,402 - - 3,194,348 Subtotals 9,495,169 2,490,541 187,042 - 12,172,752 Internal Service Funds*617,769 4,165,817 - - 4,783,586 Total governmental activities 10,112,938 $ 6,656,358 $ 187,042 $ -$ 16,956,338 $ Business-type activities: Enterprise funds: Carlsbad Municipal Water District 2,805,388 $ 443,114 $ -$ -$ 3,248,502 $ Golf Course 452,726 - - - 452,726 Wastewater 2,392,180 164,739 - - 2,556,919 Solid Waste 101,525 70,968 - 317,214 489,707 Total business-type activities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