2019/20 Budget in Brief

FISCAL YEAR

2019-20

Operating Budget & Capital Improvement Program

AT A GLANCE

Awards & Recognition Preservation Design Award, Leo Carrillo Ranch Stables, California Preservation Foundation

YEAR IN REVIEW

Honor Award, Advanced Metering Infrastructure, American Public Works Association Project of the Year Award, Leo Carrillo Ranch Historic Park Stables and Restroom, American Public Works Association Honor Award, Pine Ave Community Center and Park, American Public Works Association Project Award, Drainage Master Plan BCA, American Public Works Association Outstanding Project, Community Improvement, Pine Avenue Community Center & Park, American Society of Civil Engineers Gamechanger Award, Startup 78 Initiative, California Association for Local Economic Development Operating Budget Excellence Award, California Society of Municipal Finance Officers Honorable Mention, Leo Carrillo Ranch Stables Historical Renovation Project, Construction Management Association of America Award of Excellence for Innovative Programming, Pirate Plunge, California Parks & Recreation Society Award of Excellence in Financial Reporting, Government Finance Officers Association Distinguished Budget Presentation Award, Government Finance Officers Association Gold Level Learn to Swim Provider, Award, Red Cross Real Hero Community Partner Award, Carlsbad Community Emergency Response Team, American Red Cross of San Diego/Imperial Counties Patriotic Employer, U.S. Department of Defense Outstanding Librarian in Support of Literacy, California Library Literacy Services, California Library Association Technical Document of the Year, Traffic Impact Analysis Guidelines, Institute of Transportation Engineers High Performing Housing Agency, Section 8 Management Assessment Program, U.S. Department of Housing & Urban Development Metro Golden Watchdog Award, Carlsbad’s Municipal Water District’s Advanced Metering Infrastructure and Analysis, San Diego Taxpayer’s Association 2019’s 10 West Coast Cities That Need to be on Everyone’s 2020 Bucket List, Carlsbad #9, Travel.com 2019’s Best Ocean Beach Town to Live, Carlsbad #4, Wallethub.com 2019’s Top Ten Suburbs in San Diego County, Carlsbad #6, Homesnacks.net 2018’s 20 Game Changing Places to Live, Carlsbad #5, Sunset Magazine

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CITY OF CARLSBAD

CITY MANAGER’S MESSAGE I am proud to share the highlights of the fiscal year 2019-20 City of Carlsbad budget. In doing so, I hope to encourage you, our community, to actively engage with your local government, learn how we operate and, mostly importantly, track what we are doing with taxpayer money.

When you think about it, the annual budget is the most significant expression of how City Council policies are translated into daily operations. The City Council sets the overall policy direction for Carlsbad and helps staff prioritize programs, projects and services to support that direction. Public input plays a critical role in setting both the long-range policy direction of the city and decisions about day to day spending.

In other words, the budget serves as a road map, a work plan and a report card.

Whether providing the core city services that protect our enviable quality of life or planning a specific project affecting your neighborhood, the city’s dedicated workforce is committed to providing top quality local government services that make your life better, every day.

Scott Chadwick City Manager

This Budget in Brief focuses on parts of the city budget that generally are most of interest to our community, and that information has been summarized for brevity. Please refer to the Fiscal Year 2019-20 Operating Budget & Capital Improvement Program, available on the city’s website, for a complete accounting and descriptions of city revenues, expenses, financial policies and fund balances.

2019-20 Budget in Brief

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Community Input The city seeks input from the public all throughout the year, whether at a community meeting about a specific project, the public comment portion of City Council meetings or through a new online public engagement portal.

In 2019, we took a new approach to engaging the public in a discussion about budget priorities, holding a community workshop in March, followed by an online survey with nearly 2,000 responses.

PRIORITIES

Main Themes

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The following themes were a high priority overall: • Neighborhood quality of life • Access to nature, trails and open space • Environmental sustainability • Traffic and mobility

Most Important Services The following services were listed as the most important: • Services that support neighborhood quality of life • Parks and recreation • Law enforcement • Fire and paramedic services • Environmental sustainability

Areas to Enhance When asked which services they would like to see enhanced in the following year’s budget, community members gave the following top five responses: • Neighborhood quality of life • Parks and recreation • Environmental sustainability • Mobility/transportation • Arts and culture

CITY OF CARLSBAD

City Council Oceanside

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CARLSBAD IS A CHARTER CITY FOLLOWING THE COUNCIL-MANAGER FORM OF GOVERNMENT

2019-20 Budget in Brief

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178 FOUR K9

TRAFFIC SIGNALS

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CITY OF CARLSBAD

General Fund Operating Budget

BUDGET OVERVIEW

The General Fund is the main city budget that funds day to day services. That’s why most people look to the General Fund as an indication of a city’s overall financial health.

Total City Budget The city’s budget includes more than just the day to day spending priorities. It includes special funds set aside for specific purposes and “enterprise funds,” which can be thought of like independent businesses operating under the umbrella of the city organization, like the Carlsbad Municipal Water District, which runs on money collected through water bills. The total city budget, including all funds, is $350.6 million. The total revenue expected for the fiscal year is $343.2 million. Total spending can exceed the total revenue in a single budget year because the city saves up for projects over time, then spends the money all at once when the project is ready.

GENERAL FUND MONEY

is like your checking account (or perhaps your Venmo account). The money you spend can’t be more than the money you have coming in.

2019-20 Budget in Brief

SPECIAL FUNDS

are more like a savings account or a college fund. You put money away over time in anticipation of future expenses.

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$343.2

$350.6

SPECIAL REVENUE + TRUST $16.7M / $16.3M INTERNAL SERVICE $24.8M / $26.1M CAPITAL PROJECTS $51.4M / $53.6M ENTERPRISE $79.8M / $87.5M GENERAL $170.5M / $167.1M

REVENUES / EXPENDITURES

Fund Balances Another way to gauge a city’s fiscal health is by looking at its “fund balances.” The City Council has a policy to maintain the equivalent of 40% of the General Fund Operating Budget in reserve. This is like a rainy-day fund that can be accessed by the City Council for emergencies or other one-time priorities. Other city funds also maintain cash balances, money in the fund that is not scheduled to be spent in the current budget. Here are some examples fund balances projected for June 2020, the end of the current fiscal year.

$89.6M

$15.0M

$1.4M

General Fund

Vehicle Replacement Fund

Library Donation Fund

$90.9M Infrastructure Replacement Fund

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$63.1M

$20.0M

Enterprise Fund

Affordable Housing Fund

(e.g., Water, wastewater, solid waste)

CITY OF CARLSBAD

Top Sources

GENERAL FUND

The three main sources of General Fund revenue are property tax, sales tax and transient occupancy tax, the tax visitors pay when they stay in local hotels.

PROPERTY TAX

SALES TAX Fiscal Year

Top Sales Tax Generators* Apple Stores

Hoehn Buick GMC Cadillac

North County Hyundai

Bob Baker Chrysler Dodge Hyundai

Hoehn Motors

Omni LaCosta

Bob Baker Mazda

Invitrogen

Park Hyatt Aviara Resort

Bob Baker Subaru

Jaguar Land Rover Carlsbad

Shell Service Stations

Chevron Service Stations

Legoland California

Toyota Lease Trust

Coach

Lexus Carlsbad

Toyota Scion

Costco Wholesale

Lowe’s Home Centers

Vons Grocery Company

Dixon Ford

Macy’s Department Store

Weseloh Chevrolet / Kia

*alphabetical order

2019-20 Budget in Brief

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$Millions

Transient Occupancy Tax

Fiscal Year

Revenue History 180 160 140

$ MILLIONS

120 100 80 60 40 20 0

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018 FY 2019e FY 2020e

FISCAL YEAR

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CITY OF CARLSBAD

General Fund Expenditures

$11.1M Administrative Services Finance Human Resources

$67.8M Public Safety

$7.8M Policy & Leadership

Police Fire

City Council City Attorney’s Office City Manager’s Office Community Outreach

$14.7M General City Programs and Projects Non-departmental

$19.7M Public Works*

Environmental Management General Services Transportation

$46.0M Community Services

City Clerk Services Community & Economic Dev Library & Cultural Arts Parks & Recreation

*Additional Public Works expenditures, such as water and wastewater services, are reflected in the enterprise and capital budgets.

2019-20 Budget in Brief

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10 Year Personnel History Cities are in the business of providing services, so it’s no surprise that labor makes up the majority of city expenses. The city has grown by 40% over the last 20 years, and the overall size of the city budget to support the increasing needs of the city has almost doubled. The number of full-time staff has increased at a much slower rate. Of the 25% total staffing increase since 2009, 21% occurred more than 10 years ago. The fiscal year 2019-20 budget adds 41 new positions to support core city services.

750

Positions

725 700 675 650 625 600

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

20 Year History

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CITY OF CARLSBAD

PROGRAM HIGHLIGHTS

Public Safety Keeping our community safe remains a top prioirty, with spending on police and fire making up the largest single category of spending on day to day services, at 40%.

40% of of total total General general Fund budget fund budget

New Positions

POLICE

FIRE 2019-20 Budget in Brief

HOMELESS OUTREACH TEAM TRAFFIC PATROL PUBLIC RECORDS

FIRE PREVENTION

TECHNOLOGY

TRAINING

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Budget Highlights

$1.4M WATER RECYCLING

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CITY OF CARLSBAD

Homeless Response Plan In 2016, the Carlsbad City Council approved a Homeless Response Plan, which takes a “compassionate” enforcement approach to this challenging regional problem. Carlsbad’s approach combines a number of efforts, coordinated with regional service organizations.

53%

INCREASE IN SPENDING ON HOMELESS RESPONSE PLAN Contract with social workers to help individuals experiencing homelessness and link them to services and support.

Coordinate a more comprehensive “point in time” annual homeless count in partnership with the Regional Task Force on Homeless San Diego.

Increase the supply of affordable housing. Hire a “housing navigator” to help people find rental housing.

Hire two new officers and one sergeant for the homeless outreach team in the Police Department to make regular contact with people experiencing homelessness to form relationships, offer referrals to services and ensure they are complying with the law.

Address the numerous legal constraints that limit legislative and law enforcement powers with regard to homeless individuals.

Provide funding for homeless programs serving those in Carlsbad, including La Posada de Guadalupe men’s shelter, Interfaith Community Services Carlsbad Service Center and the Carlsbad Hiring Center.

Regular cleanup of encampments to reduce public health and safety risks and other impacts to the community.

2019-20 Budget in Brief

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CAPITAL IMPROVEMENTS 16

CIP Projects The City of Carlsbad Capital Improvement Program reflects the city’s ongoing commitment to maintaining the highest standards of quality facilities for our community today and in the future. Projects in the CIP include construction, rehabilitation or replacement of major infrastructure such as streets, libraries, parks, fire stations and administrative facilities; water, sewer and drainage facilities; and other facilities that are located on or in the ground.

NEW SPENDING

CITY OF CARLSBAD