Carlsbad's proactive and conservative planning provides a positive financial outlook for 2008.
Designed to anticipate economic downturns and provide a course of action to minimize potential impacts on city services and residents, the financial planning process for the next 10 years shows a solid foundation.
“The city of Carlsbad takes pride in its fiscally conservative policies, and the discipline of its planning and budgeting process,” said Mayor Claude A. “Bud” Lewis. “We live within our means, while providing the highest-quality services and facilities for our residents.”
Due to those fiscally conservative and proactive policies, money is placed in reserve accounts as a “rainy day fund” for unanticipated costs, said Finance Director Lisa Irvine. Concerns based on several factors, including uncertainty in the housing marketing and looming state budget deficits, could intensify the needs for those funds.
“The city is very proactive in its fiscal planning. We're a fiscally conservative city. We've made sure development has paid its way here,” Irvine said.
In 2008, two major projects will dominate the landscape, according to Irvine.
The first is Alga Norte Park, which will include a swimming complex, skate park and other amenities. Construction of the project, located at Poinsettia Avenue and Alcante, is expected to begin in early 2008 and be complete in 2010.
Irvine said the other major capital project is a police and fire training complex. The city is exploring funding options and hopes to begin construction within the next year.
The city budget for the current 2007-08 fiscal year contains expenditures of $219.9 million and project revenue of $234.1 million. Of the expenditures, $187 million will pay for city operations, while $32.8 million, or 15 percent, will pay for construction of capital improvements. The city will place 6.5 percent of its general fund revenue, or $7.9 million, into its Infrastructure Replacement Fund, to pay for future major road repairs and other projects.
The 10-year financial forecast is the starting point in developing the city budget, according to Irvine. City staff updates the document each year using economic information from a number of sources, including research programs at UCLA and the University of San Diego.
The forecast is like an early warning system designed to detect potential economic pitfalls before they occur, giving the city a chance to adjust its budget calculations and keep its finances on track. In the November-December timeframe, the city budget cycle begins when departments are asked to determine how much money they will need to provide services in the upcoming fiscal year.
Finance Department staff uses that information to compile a draft budget, which also includes revenue projections, said Irvine.
The city manager's office then makes the draft budget available to the public for review and comment. In May and June, the City Council begins consideration of the operating and capital budgets.
A public workshop to gather additional comments from residents is held in early June, Irvine said. She said the entire budget process takes about six months.
Members of the public who want to follow the budget process and review the city's financial documents can log onto www.carlsbadca.gov/finance.
Irvine said Carlsbad's excellent fiscal health is the result of more than 20 years of long-term planning by city officials.
“It didn't happen overnight. It took the visionary discipline of many people in the city to accomplish this,” she said.
Designed to anticipate economic downturns and provide a course of action to minimize potential impacts on city services and residents, the financial planning process for the next 10 years shows a solid foundation.
“The city of Carlsbad takes pride in its fiscally conservative policies, and the discipline of its planning and budgeting process,” said Mayor Claude A. “Bud” Lewis. “We live within our means, while providing the highest-quality services and facilities for our residents.”
Due to those fiscally conservative and proactive policies, money is placed in reserve accounts as a “rainy day fund” for unanticipated costs, said Finance Director Lisa Irvine. Concerns based on several factors, including uncertainty in the housing marketing and looming state budget deficits, could intensify the needs for those funds.
“The city is very proactive in its fiscal planning. We're a fiscally conservative city. We've made sure development has paid its way here,” Irvine said.
In 2008, two major projects will dominate the landscape, according to Irvine.
The first is Alga Norte Park, which will include a swimming complex, skate park and other amenities. Construction of the project, located at Poinsettia Avenue and Alcante, is expected to begin in early 2008 and be complete in 2010.
Irvine said the other major capital project is a police and fire training complex. The city is exploring funding options and hopes to begin construction within the next year.
The city budget for the current 2007-08 fiscal year contains expenditures of $219.9 million and project revenue of $234.1 million. Of the expenditures, $187 million will pay for city operations, while $32.8 million, or 15 percent, will pay for construction of capital improvements. The city will place 6.5 percent of its general fund revenue, or $7.9 million, into its Infrastructure Replacement Fund, to pay for future major road repairs and other projects.
The 10-year financial forecast is the starting point in developing the city budget, according to Irvine. City staff updates the document each year using economic information from a number of sources, including research programs at UCLA and the University of San Diego.
The forecast is like an early warning system designed to detect potential economic pitfalls before they occur, giving the city a chance to adjust its budget calculations and keep its finances on track. In the November-December timeframe, the city budget cycle begins when departments are asked to determine how much money they will need to provide services in the upcoming fiscal year.
Finance Department staff uses that information to compile a draft budget, which also includes revenue projections, said Irvine.
The city manager's office then makes the draft budget available to the public for review and comment. In May and June, the City Council begins consideration of the operating and capital budgets.
A public workshop to gather additional comments from residents is held in early June, Irvine said. She said the entire budget process takes about six months.
Members of the public who want to follow the budget process and review the city's financial documents can log onto www.carlsbadca.gov/finance.
Irvine said Carlsbad's excellent fiscal health is the result of more than 20 years of long-term planning by city officials.
“It didn't happen overnight. It took the visionary discipline of many people in the city to accomplish this,” she said.