Although the city of Carlsbad remains fiscally sound, with $48.3 million set aside in reserve, the economy has had a significant impact on its day-to-day budget.
The city's general fund revenues are down 6 percent from projections during the first quarter of the fiscal year due to continued declines in the city's main sources of revenue.
This news, combined with the state's plans to borrow about $4.8 million, means the city must continue to work hard to maintain a balanced budget, city staff reported Oct. 20. The report to the Carlsbad City Council was part of a quarterly economic update prepared by city staff to report the effects of the economy on the city's budget. The city's fiscal year runs from July 1 through June 30.
To date, the city has reduced its general fund budget by about $9 million from fiscal year 2008-09. Based on the latest numbers, additional reductions may be needed to maintain a balanced budget in 2010.
“Our fiscally conservative approach is serving us well during these tough economic times,” said Lisa Irvine, the city's finance director. “We are affected by the bad economy, but the fact that we were able to see this coming and take time to plan accordingly means we can minimize the
effects on city services for our residents.”
The city is operating with approximately 28 fewer positions. These reductions have come by not filling open positions rather than laying off staff. Additional staff reductions are planned, also through attrition.
Cost cutting measures have focused on areas that have the least direct impact on essential public services, especially public health and safety.
City parks and other landscaped areas maintained by the city are seeing less frequent mowing and trimming. Due to reductions in city staffing, residents may have to wait longer to get a response to requests for maintenance and other city services.
To save on printing and mailing costs, more information is being provided through an improved city Web site. For example, the annual community calendar will not be printed this year. Instead, information about city events and news is available online.
Wherever possible, the city is using technology to improve efficiency. For example, a recently approved project to change street lights to high efficiency light bulbs will cut the city's energy costs by $400,000 a year.
The city will continue to host community events, but fewer than in previous years.
Money for most city services, including police and fire protection, parks and libraries, comes mostly from these three main sources, all of which are projected to decrease in the current fiscal year as compared to the previous fiscal year:
• Sales tax revenues are projected to decrease by 12.6 percent.
• TOT, or hotel tax, is projected to decrease by 10.4 percent.
• Property tax is projected to decrease by 5.3 percent.
To put things in perspective, Irvine pointed out that car sales now make up approximately 21 percent of the city's total sales tax revenue, down from 27 percent in 2004-05. Sales tax revenue from car sales is now below 1999 levels.
The city continues to monitor its general fund revenue sources on a regular basis, and if necessary, will revise the revenue projections later in the fiscal year in conjunction with any expenditure adjustments. The goal is to continue to maintain a balanced budget throughout the year and into the future.
“Times are hard right now, but with continued vigilance, we will emerge from the recession well positioned for the future,” Irvine said. “The efficiencies we are creating today are needed to cope with the economy, and will benefit us long after the recession ends.”
The city budget is available online at www.carlsbadca.gov/finance.
The city's general fund revenues are down 6 percent from projections during the first quarter of the fiscal year due to continued declines in the city's main sources of revenue.
This news, combined with the state's plans to borrow about $4.8 million, means the city must continue to work hard to maintain a balanced budget, city staff reported Oct. 20. The report to the Carlsbad City Council was part of a quarterly economic update prepared by city staff to report the effects of the economy on the city's budget. The city's fiscal year runs from July 1 through June 30.
To date, the city has reduced its general fund budget by about $9 million from fiscal year 2008-09. Based on the latest numbers, additional reductions may be needed to maintain a balanced budget in 2010.
“Our fiscally conservative approach is serving us well during these tough economic times,” said Lisa Irvine, the city's finance director. “We are affected by the bad economy, but the fact that we were able to see this coming and take time to plan accordingly means we can minimize the
effects on city services for our residents.”
The city is operating with approximately 28 fewer positions. These reductions have come by not filling open positions rather than laying off staff. Additional staff reductions are planned, also through attrition.
Cost cutting measures have focused on areas that have the least direct impact on essential public services, especially public health and safety.
City parks and other landscaped areas maintained by the city are seeing less frequent mowing and trimming. Due to reductions in city staffing, residents may have to wait longer to get a response to requests for maintenance and other city services.
To save on printing and mailing costs, more information is being provided through an improved city Web site. For example, the annual community calendar will not be printed this year. Instead, information about city events and news is available online.
Wherever possible, the city is using technology to improve efficiency. For example, a recently approved project to change street lights to high efficiency light bulbs will cut the city's energy costs by $400,000 a year.
The city will continue to host community events, but fewer than in previous years.
Money for most city services, including police and fire protection, parks and libraries, comes mostly from these three main sources, all of which are projected to decrease in the current fiscal year as compared to the previous fiscal year:
• Sales tax revenues are projected to decrease by 12.6 percent.
• TOT, or hotel tax, is projected to decrease by 10.4 percent.
• Property tax is projected to decrease by 5.3 percent.
To put things in perspective, Irvine pointed out that car sales now make up approximately 21 percent of the city's total sales tax revenue, down from 27 percent in 2004-05. Sales tax revenue from car sales is now below 1999 levels.
The city continues to monitor its general fund revenue sources on a regular basis, and if necessary, will revise the revenue projections later in the fiscal year in conjunction with any expenditure adjustments. The goal is to continue to maintain a balanced budget throughout the year and into the future.
“Times are hard right now, but with continued vigilance, we will emerge from the recession well positioned for the future,” Irvine said. “The efficiencies we are creating today are needed to cope with the economy, and will benefit us long after the recession ends.”
The city budget is available online at www.carlsbadca.gov/finance.