The city of Carlsbad is paying close attention to the uncertain economic landscape.
The City Council and staff will continue to monitor how well the city is doing compared to its budget, and will make adjustments accordingly during the economic slowdown. The city analyzes its position monthly and provides an online Monthly Financial Status Report, which is made public and communicated to staff, residents and the council.
Carlsbad's financial planning process is built upon a solid foundation and is designed to anticipate economic changes and minimize potential impacts on city services and residents. The city uses a 10-year financial forecasting tool to identify the short-and long-term impacts of financial decisions.
“Due to the city's fiscally conservative and proactive policies, the city maintains a minimum 30 percent reserve as a rainy day fund for unanticipated emergencies and a target of 40 percent as part of a council policy,” said Finance Director Lisa Irvine. “For the fiscal year ending 2007-08, for example, the city's reserve was just less than 39 percent.”
This year, as California struggles with current and long-term budget deficits, the state will take approximately $300,000 from the city's Redevelopment Agency to help rebalance the state budget.
Carlsbad's diverse revenue base, as well as the ability to lower expenditures, helps the city deal with any slowdowns in the economy at the regional, state or national level. The city expects its top revenue generators, property, sales and transient occupancy taxes, to be negatively impacted due to the nation's current economy.
“The city's revenue projections anticipate a slow economy and the city is being proactive to plan accordingly so Carlsbad can minimize any effect on services provided to residents,” Irvine said.
The council has delayed some projects, like the Alga Norte Community Park and Aquatics Center, given the current fiscally uncertain conditions. The council will review funding for these projects at a later date and decide how to proceed.
In addition, the current economic conditions have resulted in the city considering a 4 to 5 percent reduction in the 2008-09 general fund budget during the mid-year review in early January 2009.
View the 2008-09 budget and the Monthly Financial Status Report online by visiting www.carlsbadca.gov/finance.
The City Council and staff will continue to monitor how well the city is doing compared to its budget, and will make adjustments accordingly during the economic slowdown. The city analyzes its position monthly and provides an online Monthly Financial Status Report, which is made public and communicated to staff, residents and the council.
Carlsbad's financial planning process is built upon a solid foundation and is designed to anticipate economic changes and minimize potential impacts on city services and residents. The city uses a 10-year financial forecasting tool to identify the short-and long-term impacts of financial decisions.
“Due to the city's fiscally conservative and proactive policies, the city maintains a minimum 30 percent reserve as a rainy day fund for unanticipated emergencies and a target of 40 percent as part of a council policy,” said Finance Director Lisa Irvine. “For the fiscal year ending 2007-08, for example, the city's reserve was just less than 39 percent.”
This year, as California struggles with current and long-term budget deficits, the state will take approximately $300,000 from the city's Redevelopment Agency to help rebalance the state budget.
Carlsbad's diverse revenue base, as well as the ability to lower expenditures, helps the city deal with any slowdowns in the economy at the regional, state or national level. The city expects its top revenue generators, property, sales and transient occupancy taxes, to be negatively impacted due to the nation's current economy.
“The city's revenue projections anticipate a slow economy and the city is being proactive to plan accordingly so Carlsbad can minimize any effect on services provided to residents,” Irvine said.
The council has delayed some projects, like the Alga Norte Community Park and Aquatics Center, given the current fiscally uncertain conditions. The council will review funding for these projects at a later date and decide how to proceed.
In addition, the current economic conditions have resulted in the city considering a 4 to 5 percent reduction in the 2008-09 general fund budget during the mid-year review in early January 2009.
View the 2008-09 budget and the Monthly Financial Status Report online by visiting www.carlsbadca.gov/finance.