At City Council last Tuesday night April 21, 2009 we got so caught up in the Stallga Norte Park spectacle that we forgot about the State of the Carlsbad Economy presented by City Finance Director Lisa Irvine. Though we took notes, we never wrote anything up. Luckily, the City of Carlsbad did it for us in a release sent out yesterday.
The city has developed a number of strategies for managing its budget that allow the city to adapt to the changing economy while minimizing effects on city services. In January 2009, to maintain a balanced budget, the City Council reduced total general fund revenue by $4.6 million, and reduced general fund expenditures by $5.3 million. Based on projected revenues, the city will likely make additional reductions in the fiscal year 2009-2010 budget, which goes into effect July 1.
The most interesting bits were about how much our City depends on Car Country Carlsbad and how poorly they are doing. There was also mention of how poorly Plaza Camino Real is doing compared to The Forum and Carlsbad Premium Outlets, but we already knew that.
For the rest of the details (minus any snide comments from us) follow the jump.
City Provides Economic Update
CARLSBAD, Calif. – During a quarterly update to the Carlsbad City Council, city staff reported that even though general fund revenues are higher than predicted for the first nine months of the fiscal year, sales tax and transient occupancy tax are down, and economists disagree about how long the current recession will last.
“The City of Carlsbad continues to monitor the national and local economy and make needed adjustments to maintain a balanced budget,” said Lisa Irvine, city finance director. “Even though economists don’t agree on when the economy will reach bottom, most believe the recovery will be long and gradual. In the face of such uncertainty, the City of Carlsbad must stay the course of fiscal prudence.”
For the first nine months of fiscal year 2008-09, general fund revenues are $77.4 million, $1.6 million higher than the January revised city budget. Sales tax is projected to total $26.3 million for the current fiscal year, a 6 percent drop from last year. Transient occupancy taxes are expected to decline by 5.5 percent this fiscal year.
Carlsbad’s home foreclosure rate has been modest compared with other cities in the region, and the number of foreclosures dropped in the first quarter of 2009. Although median home prices have declined in Carlsbad, they remain well above the San Diego County average.
The city has developed a number of strategies for managing its budget that allow the city to adapt to the changing economy while minimizing effects on city services. In January 2009, to maintain a balanced budget, the City Council reduced total general fund revenue by $4.6 million, and reduced general fund expenditures by $5.3 million. Based on projected revenues, the city will likely make additional reductions in the fiscal year 2009-2010 budget, which goes into effect July 1.
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 have identified options for cutting back on city services, if needed, focusing first on those with the smallest direct effect on the community.
Citing the City of Carlsbad’s strong financial management Standard & Poor’s recently upgraded the city’s credit rating from AA to AAA. 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. The City of Carlsbad forecast assumes a three-year economic recession with a slow recovery beginning in fiscal year 2012. In the forecast, the opening of new facilities is proposed to be delayed or deferred to help balance projected budgets.
Regular updates on the city budget and financial forecasts are available on the city Web site at www.carlsbadca.gov/finance.
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I think Carlsbad may have turned the police loose here in town to help “educate” the population about the dangers of speeding…even a little. There are cops everywhere pulling over Carlsbadians. I am guessing that this new river of money from speeding tickets will help our little town make ends meet when the budget is being put together.
Thanks Carlsbadistan link editors, for taking the time to publish this, as its good education for the average consumer, citizen, and any other interested parties, who occasionally beat up on Carlsbad City leaders and staff, especially, it seems in the NC Times.
Readers – Its very easy to make snide comments, and this is a free country so feel free to be as snide as you like.
But in quiet moments enjoying the beach, or the clean parks, or the safe trails we do have, please keep linking and thinking back to this article, whenever you read the kooky comments and complaints on “why the City didnt buy this piece of land” or another dog-poop littered pathway, for open space preserves.
Buying the land is only the first part, and the smallest part of the cost. Maintaining it for ever is the never going away cost of open space, to adhere to the unfunded mandates at State and Federal level.
That takes people, cops, public service workers, hired conservation managers, and they all cost money, now and in retirement and thats not cheap.
Here is my suggestion to neighbors and astro-turfing webmasters and sockpuppet out of town whiners – until you “activists” have actually walked the walk – ie picked up the poop and done the trail work and weed picking for years, you simply wont appreciate the effort and the cost of those who quietly do it for pay, or free, and why the City has to be patient and pick the right time and piece of land, before committing to the expense, in perpetuity.
As more and more cities in California go down the tubes, financially, for being unable to manage their budget, people will continue to move to Carlsbad, where they know the services will still be paid for, and promises kept.
Just as families and companies are realizing you can’t spend more than you make, and you cant have everything, the citizens and free-riders from neighboring towns who use our trails, beaches, parks and other amenities will come to appreciate the City staff and long-suffering Mayor and City Council, who have been quietly making sure we the citizens of Carlsbad are living within the means of revenues available.