The Carlsbad City Council adopted a $250 million budget Tuesday, meaning the City of Carlsbad will start the new fiscal year with a balanced budget that preserves core programs and services for the public.
“The public should not notice any significant changes next year, and we consider that a victory given the major effect the recession has had on our bottom line, “said Kevin Branca, the city's acting finance director. “We also made it a priority to continue our investments in infrastructure, technology and programs that will help spur the local economy.”
The $188.3 million operating budget, which covers many day-to-day city services, such as parks, recreation, library, police and fire services, was presented to the City Council June 8. The city's major construction projects are included in the $61.5 million Capital Improvement Program budget, presented to the City Council May 11. In addition to these meetings, the city held a budget workshop June 10 where community members had a chance to ask questions and make comments about next year's spending plans.
Although no new major projects or services are included in next year's budget, careful planning and responsible management will allow the City of Carlsbad to maintain its current programs and services. The city's libraries, community centers and pool are still open to the public seven days a week. The city continues to invest in infrastructure, maintaining roads, sidewalks, street lights, and the water and sewer systems. The city's arts, library and recreation programs are more in demand than ever, and the city has maintained a diverse selection of these important programs.
The fiscal year 2010-11 operating budget is about 1.5 percent or $2.8 million less than this year's budget, the fiscal year 2009-10 operating budget. The fiscal year 2009-10 operating budget is almost 8 percent less than last year's.
The recession has had a significant effect on city finances. Overall, city ongoing revenues are down $14 million since their peak in 2007. The city's top three sources of money have decreased since the start of the recession in 2008.
• Sales tax has decreased by approximately 21 percent since its peak in fiscal year 2007-08.
• Transient occupancy tax, the tax tourists pay when they stay in Carlsbad hotels, has decreased by approximately 19 percent since its peak in fiscal year 2007-08.
• Changes in property tax revenues typically lag behind changes in sales and transient occupancy taxes. Property tax, the city's largest source of revenue, is projected to decrease by 2 percent since its peak in fiscal year 2008-09 and an additional 2 percent in fiscal year 2010-11.
The city develops budget projections 10 years into the future. This 10-year forecast provides an early warning for staff and allows adjustments to be made along the way, avoiding major surprises. A few years ago, as the city noticed decreases in projected revenues, it began adjusting its spending plans.
So far, the city has reduced its budget by about $10 million from fiscal year 2008-09. The city is operating with 25 fewer positions since the start of the recession, including 17.25 positions eliminated from the fiscal year 2010-11 budget. Staff reductions have been achieved by restructuring some city departments, early retirements and eliminating unfilled positions, rather than layoffs. Overall, total personnel costs have decreased by $2 million, or 2.7 percent over this year's budget.
The city's goal has been to reduce spending in areas with the least direct effect on core city services. Due to reductions in city staffing over the past two years, residents may have to wait longer to get a response to requests for maintenance and other city services. City parks and other landscaped areas maintained by the city will see less frequent mowing and trimming than in past years. The city is also saving money on printing and mailing by providing more information online through the city's website.
Some of the major Capital Improvement Program projects to receive funding next year include looking at ways to improve coastal access by possibly moving southern Carlsbad Boulevard to the east; projects to improve traffic flow around the city; the first steps toward relocating Fire Station #3 to a location that will help the city meet response time goals; water, sewer and drainage projects; and expansion of the city's recycled water program. These projects are in addition to those approved in previous years. Many capital projects span multiple years.
Large projects included in the Capital Improvement Program still must be authorized by the City Council before proceeding. When considering projects, the city looks not only at the availability of funding for construction, but also at funding for ongoing maintenance and operations.
The budget includes minimal fee increases for next year. Fees for city services are normally increased with the rate of inflation. The City Council did not raise fees in the current year's budget. For next year's budget, most fees will remain the same. A handful of fees will be increased, but only to recover more actual costs and keep pace with the market. For example, fees for renting some city meeting rooms and Leo Carrillo Ranch Historic Park increase with the proposed budget, as do fees for some library services that are considered convenience fees, like renting DVDs.
The fiscal year 2010-11 operating budget assumes an increase in water, sewer and trash rates to cover the city's costs to provide those services. These increases, which total about $10 a month for an average household, will be determined at a separate public hearing to be held in November. Water rate increases are due primarily to the increased cost of buying imported water, which makes up 100 percent of the city's drinking water supply. Sewer rates need to be increased to cover the cost of providing sewer service and comply with new regulations. Even after the proposed rate increase, the city will still have the second lowest sewer rates in the county. Trash rates are proposed to go up due to a planned increase from Waste Management, the city's contracted trash service provider.
The city will place the entire budget document on its website, www.carlsbadca.gov/finance, for anyone interested in reviewing it. The city also provides monthly financial status reports on its website, as well as other information to help the public understand how the city is managing the taxpayers' money.
“The public should not notice any significant changes next year, and we consider that a victory given the major effect the recession has had on our bottom line, “said Kevin Branca, the city's acting finance director. “We also made it a priority to continue our investments in infrastructure, technology and programs that will help spur the local economy.”
The $188.3 million operating budget, which covers many day-to-day city services, such as parks, recreation, library, police and fire services, was presented to the City Council June 8. The city's major construction projects are included in the $61.5 million Capital Improvement Program budget, presented to the City Council May 11. In addition to these meetings, the city held a budget workshop June 10 where community members had a chance to ask questions and make comments about next year's spending plans.
Although no new major projects or services are included in next year's budget, careful planning and responsible management will allow the City of Carlsbad to maintain its current programs and services. The city's libraries, community centers and pool are still open to the public seven days a week. The city continues to invest in infrastructure, maintaining roads, sidewalks, street lights, and the water and sewer systems. The city's arts, library and recreation programs are more in demand than ever, and the city has maintained a diverse selection of these important programs.
The fiscal year 2010-11 operating budget is about 1.5 percent or $2.8 million less than this year's budget, the fiscal year 2009-10 operating budget. The fiscal year 2009-10 operating budget is almost 8 percent less than last year's.
The recession has had a significant effect on city finances. Overall, city ongoing revenues are down $14 million since their peak in 2007. The city's top three sources of money have decreased since the start of the recession in 2008.
• Sales tax has decreased by approximately 21 percent since its peak in fiscal year 2007-08.
• Transient occupancy tax, the tax tourists pay when they stay in Carlsbad hotels, has decreased by approximately 19 percent since its peak in fiscal year 2007-08.
• Changes in property tax revenues typically lag behind changes in sales and transient occupancy taxes. Property tax, the city's largest source of revenue, is projected to decrease by 2 percent since its peak in fiscal year 2008-09 and an additional 2 percent in fiscal year 2010-11.
The city develops budget projections 10 years into the future. This 10-year forecast provides an early warning for staff and allows adjustments to be made along the way, avoiding major surprises. A few years ago, as the city noticed decreases in projected revenues, it began adjusting its spending plans.
So far, the city has reduced its budget by about $10 million from fiscal year 2008-09. The city is operating with 25 fewer positions since the start of the recession, including 17.25 positions eliminated from the fiscal year 2010-11 budget. Staff reductions have been achieved by restructuring some city departments, early retirements and eliminating unfilled positions, rather than layoffs. Overall, total personnel costs have decreased by $2 million, or 2.7 percent over this year's budget.
The city's goal has been to reduce spending in areas with the least direct effect on core city services. Due to reductions in city staffing over the past two years, residents may have to wait longer to get a response to requests for maintenance and other city services. City parks and other landscaped areas maintained by the city will see less frequent mowing and trimming than in past years. The city is also saving money on printing and mailing by providing more information online through the city's website.
Some of the major Capital Improvement Program projects to receive funding next year include looking at ways to improve coastal access by possibly moving southern Carlsbad Boulevard to the east; projects to improve traffic flow around the city; the first steps toward relocating Fire Station #3 to a location that will help the city meet response time goals; water, sewer and drainage projects; and expansion of the city's recycled water program. These projects are in addition to those approved in previous years. Many capital projects span multiple years.
Large projects included in the Capital Improvement Program still must be authorized by the City Council before proceeding. When considering projects, the city looks not only at the availability of funding for construction, but also at funding for ongoing maintenance and operations.
The budget includes minimal fee increases for next year. Fees for city services are normally increased with the rate of inflation. The City Council did not raise fees in the current year's budget. For next year's budget, most fees will remain the same. A handful of fees will be increased, but only to recover more actual costs and keep pace with the market. For example, fees for renting some city meeting rooms and Leo Carrillo Ranch Historic Park increase with the proposed budget, as do fees for some library services that are considered convenience fees, like renting DVDs.
The fiscal year 2010-11 operating budget assumes an increase in water, sewer and trash rates to cover the city's costs to provide those services. These increases, which total about $10 a month for an average household, will be determined at a separate public hearing to be held in November. Water rate increases are due primarily to the increased cost of buying imported water, which makes up 100 percent of the city's drinking water supply. Sewer rates need to be increased to cover the cost of providing sewer service and comply with new regulations. Even after the proposed rate increase, the city will still have the second lowest sewer rates in the county. Trash rates are proposed to go up due to a planned increase from Waste Management, the city's contracted trash service provider.
The city will place the entire budget document on its website, www.carlsbadca.gov/finance, for anyone interested in reviewing it. The city also provides monthly financial status reports on its website, as well as other information to help the public understand how the city is managing the taxpayers' money.