City Staff Presents Balanced Budget for Next Fiscal Year

Carlsbad’s budget is in good shape for the upcoming fiscal year.

In a presentation before the City Council on Tuesday, city finance staff credited the recovering economy and strategic planning for the proposed balanced operating budget for fiscal year 2013-14, which begins July 1.

The preliminary operating budget, which covers day-to-day city services, totals $211 million. This is an increase of $900,000 or 0.4 percent from the adopted budget for the 2012-13 fiscal year.

“As we always do, we look to be fiscally responsible,” said City Administrative Services Director Chuck McBride. “We’re presenting for you a balanced budget—actually, it’s a very well-balanced budget. We’ve been fortunate to see our revenue resources increase into the coming fiscal year.”

Revenues in the next fiscal year are expected to total $219 million, an increase of $3 million or 1.4 percent from the current year, according to the staff report.

The city’s three largest sources of revenue in the general fund are property tax, sales tax and transient occupancy tax, which is also known as hotel tax.

Property tax is expected to total $48.4 million, which is an increase of 1.5 percent from the current year. Sales taxes are expected to total $31.1 million in the next fiscal year, an increase of 4 percent, and hotel taxes are expected to total $14.7 million, an increase of 6.2 percent.

New car sales, which provide 25 percent of the city’s sales tax revenue, are expected to remain strong in the next fiscal year. In addition, new commercial projects, retail stores and hotels—including the newly-opened, 250-room LEGOLAND Hotel—will generate extra revenue for the city.

Staff explained Carlsbad has a balanced budget because of measures the city has taken in recent years.

The fiscal year 2013-14 budget cuts 12 full-time positions resulting in an annual savings of $555,000. Since 2008, the city has eliminated 50 positions.

“In response to the recession over the last few years, we’ve actually structurally realigned our operating budget,” McBride said.

Community members will have an opportunity to review the city’s operating budget, as well as the capital improvement budget, during the Citizens Budget Workshop at 6 p.m. on Thursday, May 30 in Room 173B at the Faraday Center located at 1635 Faraday Ave.

The proposed Capital Improvement Program budget, which covers major construction projects, was presented to council members on May 14. Both budgets will be presented for adoption by the City Council at a public hearing during the June 11 meeting. 

In other council business:·       

• The City Council introduced an ordinance to establish an all-way stop at Edinburgh Drive and Glasgow Drive.
  
• The City Council introduced and adopted an urgency ordinance extending the prohibition of mini-satellite wagering for 10 months and 15 days.
  
• Council members approved a Professional Services Agreement with K. Backus and Associates for higher education consulting services and authorized the administrative services director to appropriate and distribute funds to the Community and Economic Development account.