Although feeling the effects of the economic recession, the city of Carlsbad has managed to maintain a balanced budget and continues to invest in critical infrastructure and public safety projects.
In March, the city's strong financial management was recognized by Standard & Poor's when the credit rating agency upgraded the city's credit rating from AA to AAA, the highest rating possible.
“Achieving a AAA rating from Standard & Poor's is great validation of our prudent approach to financial management, especially in this tough economy,” said Lisa Irvine, finance director for the city of Carlsbad.
The city's major sources of revenue are affected by the down economy. Since last fiscal year, projected sales tax revenue is down 6.2 percent, transient occupancy tax, also known as hotel tax, is down 5.5 percent and development related revenues are down 48 percent.
The city of Carlsbad forecasts projected annual revenues and spending over a 10-year period so it can make adjustments as needed to maintain a balanced budget. In January, the city reduced its fiscal year 2008-09 budget by approximately $5 million to ensure it continues to maintain a balanced budget.
Based on projected revenues, the city will likely make additional reductions in the fiscal year 2009-10 budget, which goes into effect July 1.
The city has developed a number of strategies for managing its budget so it can adapt to a changing economy while minimizing effects on city services. All city departments have identified possible ways to increase efficiency, including using technology and streamlining
operations.
The city is reducing the size of its workforce, primarily by not filling open positions unless they are critically necessary to maintain core city functions. City staff also has identified options for cutting back on city services, if needed, focusing first on those with the smallest direct effect on the
community.
Regular updates on the city budget and financial forecasts are available by visiting www.carlsbadca.gov/finance.
In March, the city's strong financial management was recognized by Standard & Poor's when the credit rating agency upgraded the city's credit rating from AA to AAA, the highest rating possible.
“Achieving a AAA rating from Standard & Poor's is great validation of our prudent approach to financial management, especially in this tough economy,” said Lisa Irvine, finance director for the city of Carlsbad.
The city's major sources of revenue are affected by the down economy. Since last fiscal year, projected sales tax revenue is down 6.2 percent, transient occupancy tax, also known as hotel tax, is down 5.5 percent and development related revenues are down 48 percent.
The city of Carlsbad forecasts projected annual revenues and spending over a 10-year period so it can make adjustments as needed to maintain a balanced budget. In January, the city reduced its fiscal year 2008-09 budget by approximately $5 million to ensure it continues to maintain a balanced budget.
Based on projected revenues, the city will likely make additional reductions in the fiscal year 2009-10 budget, which goes into effect July 1.
The city has developed a number of strategies for managing its budget so it can adapt to a changing economy while minimizing effects on city services. All city departments have identified possible ways to increase efficiency, including using technology and streamlining
operations.
The city is reducing the size of its workforce, primarily by not filling open positions unless they are critically necessary to maintain core city functions. City staff also has identified options for cutting back on city services, if needed, focusing first on those with the smallest direct effect on the
community.
Regular updates on the city budget and financial forecasts are available by visiting www.carlsbadca.gov/finance.