CAFR FY 2007-08�l
CITY OF RANCHO PALOS VERDES
CALIF OR NIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30, 2008
CITY OF RANCHO PALOS VERDES,
CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2008
Prepared By:
Finance & Information Technology Department
Dennis McLean, Director
Kathryn Downs, Deputy Director
Cover photo provides a view of the Rancho Palos Verdes shoreline and Point Vicente Lighthouse
INTRODUCTORY SECTION
Fourth of July Hula-Hoop Contest at Upper Point Vicente Park
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents i -iii
Letter of Transmittal iv -viii
Directory of City Officials ix
Organization Chart x
GFOA Certificate of Achievement for Excellence in Financial Reporting xi
FINANCIAL SECTION:
Independent Auditor's Report 3
Management Discussion and Analysis 7
Government -Wide Financial Statements
Statement of Net Assets 19
Statement of Activities 20
Fund Financial Statements
Governmental Funds
Balance Sheet 24
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets 27
Statement of Revenues, Expenditures, and Changes in Fund Balances 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities 30
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual 31
Street Maintenance Special Revenue Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
- Budget and Actual 32
Proprietary Funds
Statement of Net Assets 33
Statement of Revenues, Expenses, and Changes in Fund Net Assets 34
Statement of Cash Flows 35
Notes to the Financial Statements 38
i
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS
Supplementary Information
Major Fund Budgetary Comparison Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual
RDA Debt Service Fund 68
Capital Improvements Capital Projects Fund 69
Non -Major Governmental Funds
Combining Balance Sheet 74
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 80
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Special Revenue Funds
Air Quality Management Fund 86
Community Development Block Grant Fund 87
El Prado Fund 88
RDA Housing Set -Aside Fund 89
Proposition A Fund 90
Proposition C Fund 91
Beautification Fund 92
Waste Reduction Fund 93
Public Safety Grants Fund 94
1972 Act Fund 95
1911 Act Fund 96
JPIA — Portuguese Bend Fund 97
Habitat Restoration Fund 98
Subregion One Maintenance Fund 99
Measure A Fund 100
Abalone Cove Sewer Assessment District 101
Rancho Palos Verdes TV Channel 102
Dr. Allen and Charlotte Ginsburg Cultural Arts Building 103
Recreation Improvements Donations 104
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Capital Projects Funds
Bikeways Fund 105
RDA Abalone Cove Fund 106
Environmental Excise Tax Fund 107
Quimby Fund 108
Affordable Housing Fund 109
RDA Portuguese Bend Fund 110
Utility Undergrounding Fund 111
Roadway Beautification Fund 112
ii
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual — Permanent Fund
JPIA — Abalone Cove Fund 113
Internal Service Funds
Combining Statement of Net Assets 116
Combining Statement of Revenues, Expenses, and Changes
in Fund Net Assets 117
Combining Statement of Cash Flows 118
STATISTICAL SECTION (Unaudited)
Financial Trends
Net Assets by Component 120
Changes in Net Assets 121
Governmental Activities Tax Revenue By Source 123
Fund Balances of Governmental Funds 124
Changes in Fund Balances of Governmental Funds 125
General Governmental Tax Revenues By Source 126
Revenue Capacity
Assessed Value and Estimated Actual Value of Tax Property 127
Property Tax Rates - Direct and Overlapping Governments 128
Principal Property Taxpayers 129
Property Tax Levies and Collections 130
Debt Capacity
Ratios of Outstanding Debt by Type 131
Direct and Overlapping Governmental Activities Debt 132
Legal Debt Margin Information 133
Demographic and Economic Information
Demographic and Economic Statistics 134
Principal Employers 135
Operating Information
Full-time Equivalent City Government Employees by Function 136
Operating Indicators by Function 137
Capital Asset Statistics by Function 138
iii
The Archery Range at Abalone Cove
CITY O RANCHO PALOS VERDES
December 22, 2008
Honorable Mayor and City Council
City of Rancho Palos Verdes
Rancho Palos Verdes, California
The Comprehensive Annual Financial Report (CAFR) of the City of Rancho Palos Verdes for the fiscal year ended
June 30, 2008, is hereby submitted as mandated by both local ordinances and state statutes. These ordinances and
statutes require that the City of Rancho Palos Verdes issue annually a report on its financial position and activity, and
that an independent firm of certified public accountants audit this report. Responsibility for both the accuracy of the
data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best
of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that
presents fairly the financial position and results of operations of the various funds and component units of the City of
Rancho Palos Verdes. In addition, to the best of our knowledge, there are no untrue statements of material fact
within the financial statements or omissions of material fact to cause the financial statements to be misleading. All
disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been
included.
The financial section of the CAFR includes management's discussion and analysis (MD&A). This letter of transmittal
is designed to complement the MD&A and should be read in conjunction with it.
The financial reporting entity (the government) includes all the funds of the primary government (i.e., the City of
Rancho Palos Verdes as legally defined), as well as its component units, the Rancho Palos Verdes Redevelopment
Agency and the Joint Powers Improvement Authority. A component unit is a legally separate entity for which the
primary government is financially accountable. The City provides a broad range of services, including police
protection, solid waste collection, construction and maintenance of streets and other infrastructure, planning and
zoning activities, recreational activities, cultural events, and general administrative services. The City of Rancho
Palos Verdes is a contract city, meaning that some of these services are provided by contract with other agencies
(both public and private) and some services are delivered by the City's own employees.
Special districts of the County of Los Angeles provide library services, fire protection services, and sewer services.
The City has excluded the County of Los Angeles, as well as the State of California and various school districts, from
the financial reporting entity because they do not meet the established criteria for inclusion.
GOVERNMENTAL STRUCTURE, ECONOMIC CONDITION AND OUTLOOK
The City of Rancho Palos Verdes is located on a coastal peninsula overlooking the Pacific Ocean in Los Angeles
County, 20 miles south of the City of Los Angeles. The City was incorporated September 7, 1973. The City currently
has a land area of 13.6 square miles and a population of 42,964. The City is primarily a "bedroom" community with
relatively little commercial activity.
The City has operated under the council-manager form of government since incorporation. Policy-making and
legislative authority are vested in the governing council, which consists of five council members, including the mayor
and mayor pro -tem. The governing council is responsible, among other things, for passing ordinances, adopting the
budget, appointing committees and hiring the city manager and the city attorney. The city manager is responsible for
carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the
government, and for appointing the heads of the government's departments. The council is elected on a non-
partisan, at -large basis. Council members are elected to four-year staggered terms with two or three council
members elected every two years. The council designates the mayor and mayor pro -tem for a one-year term.
Though the General fund reserves of the City decreased during the fiscal year ended June 30, 2008, it is important to
continue to measure the City's financial strength over time, not just on the basis of the most recent three or four years
iv
experience. The budget adopted by the City Council for the fiscal year ending June 30, 2009 presents the
expectation of a further decrease of General fund reserves. The economic downturn affecting revenue sources such
as taxes and permits, as well as the need to fund additional infrastructure renewal and maintenance will require
continued conservative fiscal policies.
MAJOR INITIATIVES
The City's staff, following specific directives of the City Council and the City Manager, has been involved in a variety
of projects throughout the year. These projects reflect the government's commitment to ensuring that its citizens are
able to live and work in an enviable environment.
Planning. Building. and Code Enforcement
➢ The City together with the Palos Verdes Peninsula Land Conservancy continued management of the City's
Natural Communities Conservation Plan (NCCP) Preserve, developed a Preserve Trails Plan and continued its
effort for acquiring open space for inclusion into the habitat preserve.
➢ The City continued to formally monitor development projects in surrounding jurisdictions (referred to as "border
issues") to assess their potential impacts upon the City and its residents.
➢ The City continued to approve the installation of various commercial antenna facilities for cellular telephones and
personal communication systems on private property throughout the City.
➢ The City took the next step in updating its General Plan by entering into contracts with a consulting team to work
with Staff in preparing the General Plan Update. Staff is currently working with the consulting team and expects
the General Plan Update will be presented to the Planning Commission and the City Council in 2009.
➢ The City continued to implement its State approved Housing Element and worked with the Southern California
Association of Governments (SCAG) in preparing the Regional Housing Needs Assessment. The City was
successful in working with SCAG to reduce its RHNA housing construction need from 311 units to 60 units. The
reduced number more accurately reflects the housing need of the City, which was used in the preparation of the
City's updated Housing Element. The Housing Element was reviewed by the Planning Commission and
approved by the City Council in June 2008, and sent to the California Department of Housing and Community
Development prior to the July 1, 2008 deadline.
Public Works
➢ Both the arterial and residential street re -paving projects were completed for the 2006-07 cycle.
➢ The City began construction of the $7.4 million McCarrell Canyon backbone drainage system.
➢ Various capital projects throughout the City were completed, including bus shelter improvements and
roadside landscaping.
➢ Trail improvements at the Point Vicente Interpretive Center and the Forrestal open space tract were
substantially completed using grant monies from the County 4th Supervisorial District.
➢ The City continued its storm drain lining program for FY07-08, completing about $0.5 million of additional
lining; thereby extending the life of the pipes.
➢ The Sunnyside Ridge and Mossbank storm drain improvement projects were completed.
➢ The interior of City Hall was re -painted and carpeted during the holiday break in FY07-08.
➢ The City awarded more than $150,000 of beautification grants for local neighborhood beautification projects.
➢ The City continued restoration efforts for habitat in the San Ramon upland area.
➢ A baseline utilities survey of the Civic Center was completed during FY07-08.
v
Recreation and Parks
➢ Recreation and Parks Staff continued to operate the expanded Point Vicente Interpretive Center, attracting
approximately 40,000 visitors to the museum.
➢ Recreation and Parks Staff coordinated the first anniversary celebration of the Interpretive Center's re-
opening and the installation of a new exhibit dedicated to the memory of Marineland.
➢ Recreation and Parks Staff and the Los Serenos de Point Vicente docents hosted the annual Whale of a Day
event on the Point Vicente Interpretive Center grounds.
i The Los Serenos de Pointe Vicente docents continued their successful docent -led hike programs at several
sites throughout the City.
i Recreation and Parks Staff coordinated advance preparations for the City's 35th Anniversary Celebrations.
➢ Recreation Staff assisted the Peninsula Seniors, a local non-profit organization, with their operation of
temporary offices and a classroom using modular trailers at Upper Point Vicente Park. The City also
continued to offer the Peninsula Seniors the use of other park facilities for various events.
➢ Recreation and Parks Staff coordinated the City's annual July 4th Independence Day celebration.
➢ Recreation and Parks Staff hosted a production by Shakespeare by the Sea at Hesse Park.
➢ Recreation and Parks Staff continued to coordinate numerous annual and one-time community events
including the Abalone Cove Beach Clean -Up Day and Breakfast with Santa.
➢ Through the City's Gifts for Parks program, Recreation Staff and Los Serenos de Point Vicente docents
continued to pursue donations for PVIC exhibits, Fourth of July Celebration, Breakfast with Santa and other
special events and programs.
➢ Once again, the City has qualified for the use of Community Development Block grant funds for the REACH
program for youth and young adults with developmental disabilities.
Administration
➢ The City's measure to reduce the duration of the Storm Drain User Fee from 30 years to 10 years and establish a
Resident Oversight Committee for the storm drain program was approved by voters during the November 2007
General Municipal Election.
➢ Management Partners Incorporated performed an Organization -Wide Management Assessment. ACity Council
workshop was conducted in March 2008 to review the recommendations, which led to the re -organization of City
Advisory Committees and Commission and the addition of two full-time employees to the City's Staff.
➢ Staff and the City Council participated in the National Incident Management System (NIMS) training in an effort to
improve emergency preparedness.
➢ The City conducted a Vision Plan and Public Use Master Plan Workshop in November 2008 to receive public
testimony and provide feedback regarding the final Vision Plan. Preparation of the Vision Plan document was
funded with a grant from the Annenberg Foundation, and the final document was adopted in September 2008.
➢ The City extended the Cable Franchise Agreement with Cox Cable for five years to October 2015.
➢ The City continued its support of the RPV TV Channel, and contracted the services of a Station Manager.
➢ Sunset Park was re -named the Marilyn Ryan Sunset Park as a memorial to the City's first mayor.
➢ The City dedicated the pedestrian bridge in the Marilyn Ryan Sunset Park as a memorial to fallen Los Angeles
Police Department SWAT Officer Randall Simmons, a long-time resident of the City.
vi
➢ The City Council formed a 2008 ad-hoc Audit Committee and appointed two Council Members to serve on the
Committee.
➢ The City Council conducted Team Building and Tactical Planning Workshops in March 2008.
➢ The City hosted a Community Leaders' Breakfast in May 2008 to provide updates of the storm drain program,
Waste Management services, traffic analysis, and the Terranea Resort Hotel project.
➢ Staff and the City's consultant began preparation of an updated Cost Based Fee Study. The updated Study is
expected to be presented to City Council early 2009.
FINANCIAL INFORMATION
The Finance and Information Technology department of the City is responsible for establishing and maintaining an
appropriate internal control structure. The internal control system is designed to ensure that the assets of the City are
protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept
of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived;
and (2) the valuation of costs and benefits requires estimates and judgements by management.
Single Audit. As a recipient of federal, state, and county financial assistance, the City is responsible for ensuring that
an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to
those programs. This internal control structure is subject to periodic evaluation by management. In years when over
$500,000 is expended on Federal financial assistance programs, the City is required to undergo an annual single
audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget
Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. For the year ended June 30,
2008, more than $900,000 was expended on Federal financial assistance programs; and therefore, a Single Audit is
required to be completed by March 31, 2009.
Budgeting Controls. The City of Rancho Palos Verdes maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with legal provisions contained in the annual appropriated budgets
approved by the City Council, Redevelopment Agency Board, and Improvement Authority Commission. Activities of
the General fund, Special Revenue funds, Capital Projects funds, Debt Service fund and Permanent fund are included
in the annual appropriated budgets of the government units. The level of budgetary control (that is, the level at which
expenditures cannot legally exceed the appropriated amount) is established at the department/function level within
each fund. Formal budgetary integration is employed as a management control device. The City also maintains an
encumbrance accounting system as one method of maintaining budgetary control. These encumbrances lapse at
year-end, and any unexpended balance is eligible to be carried over to the following year's budget appropriations with
City Council approval.
Budget to Actual Comparison. The City experienced a small overall favorable budget variance in the General fund for
the fiscal year ended June 30, 2008. Actual General fund revenues were approximately $350,000 less than the
amount budgeted, while expenditures and inter -fund transfers were approximately $400,000 less than the amount
budgeted. The overall positive variance resulted from the continued careful management of resources during FY07-
08.
Debt Administration. At June 30, 2008, the City had no general obligation debt and one tax increment bond issued
during FY97-98. The schedule for repayment of this bond is included in the notes to the financial statements.
Cash Management. To obtain increased flexibility in cash management, the City employs a pooled cash system. The
goals of the City's investment policy are safety, liquidity, and yield, in that order. The City's investments are currently
maintained with U.S. Treasury securities and the State Treasurer's Local Agency Investment Fund (LAIF). LAIF
provides high safety and liquidity and is operated specifically for local governments. Earnings are allocated to the
various funds based on average cash balances.
Risk Management. The City of Rancho Palos Verdes is a member of the California Joint Powers Insurance Authority
(CJPIA). With 119 members, it is the largest joint powers insurance authority in California. Through the CJPIA, the
City is self-insured against liability and workers' compensation claims. As protection against catastrophic loss,
members fund a pool to finance large settlements. During the fiscal year ended June 30, 2008, Rancho Palos
Verdes continued its proactive liability risk management role through careful monitoring of losses, working closely
vii
with the CJPIA's third -party claims adjuster, and designing and implementing programs to minimize risks and reduce
losses. In addition, the City Manager's staff analyzes workers compensation issues by monitoring work conditions,
and organizing and implementing safety -training programs to reduce employee exposure to hazards.
Fiduciary Operations. The City of Rancho Palos Verdes has a fiduciary fund that is used to account for assets (cash)
held by the City in a trustee capacity or as an agent for other governmental units, private organizations or individuals.
The trust and agency fund is restricted as to its use and is not available to fund the operating activities of the City
and, as such, are offset by a liability equal to the carrying amount of the asset.
OTHER INFORMATION
Independent Audit. The City requires an annual audit by independent certified public accountants. The accounting
firm of Diehl, Evans & Company, LLP conducted this year's audit. The auditors' report on the government -wide
financial statements and combining and individual fund statements and schedules is included in the financial section
of this report.
Audit Committee. The City Council appointed two Council members to an ad-hoc Audit Committee for 2008. The
Audit Committee participated in planning the audit, conducted an exit interview with auditors and received the draft
audited financial statements prior to finalizing the document.
GFOA Certificate of Achievement Award. The Government Finance Officer's Association of the United States and
Canada (GFOA) oversees a prestigious national award program to recognize conformance with the highest
standards of report preparation. In order to be awarded a Certificate of Achievement, a government unit must publish
an easily readable and efficiently organized CAFR. This report must satisfy both Generally Accepted Accounting
Principles and applicable legal requirements.
The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Rancho Palos
Verdes for its CAFR for the fiscal year ended June 30, 2007. This was the 15th consecutive year that the City of
Rancho Palos Verdes has achieved this prestigious award. A copy of the GFOA Certificate of Achievement is
included later in the introductory section of this year's CAFR. A Certificate of Achievement is valid for a period of one
year only. We believe our current CAFR continues to meet the Certificate of Achievement Program's requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments. Completion of this report was the accomplishment by combined efforts of many individuals,
especially Kathryn Downs, Deputy Director of Finance and Information Technology, who coordinated preparation of
the report. I wish to acknowledge the assistance of our auditors, Diehl, Evans & Company, LLP and the contributions
of other Finance and Information Technology Department staff: Sara Singer, Jane Lin, Selena Wright, Gayle
Vanoverbeck, and Nancy Vitez.
I would also like to recognize the City Council for their continued leadership directing the City to achieve a sound
fiscal position over the last several years. We look forward to maintaining this success in the future under the
leadership of the City Council.
Respectfully submitted,
Dennis McLean
Director of Finance & Information Technology
VIII
CITY OF RANCHO PALOS VERDES
DIRECTORY OF CITY OFFICIALS
JUNE 30, 2008
CITY COUNCIL
Douglas W. Stern, Mayor
Larry Clark, Mayor Pro -Tem
Peter Gardiner, Councilman
Thomas D. Long, Councilman
Steve Wolowicz, Councilman
ADMINISTRATION AND DEPARTMENT HEADS
City Manager Carolyn Lehr
Deputy City Manager Carolynn Petru
City Clerk Carla Morreale
Director of Finance and Information Technology Dennis McLean
Director of Planning, Building and Code Enforcement Joel Rojas
Director of Public Works Jim Bell
Director of Recreation and Parks Ron Rosenfeld
City Attorney Richards, Watson & Gershon
ix
CITY OF RANCHO PALOS VERDES
ORGANIZATIONAL CHART
CITIZENS OF
RANCHO PALOS VERDES
MAYOR AND CITY COUNCIL
COMMISSIONS & COMMITTEES
Planning Commission
Traffic Safety Commission
Finance Advisory Committee
CITY MANAGER
Administration/Budget
Personnel/Community Outreach
Risk Management
CITY CLERK
Records Management
Public Information
Elections
RECREATION & PARKS
Park Facilities
Point Vicente Interpretive Center
Special Events
REACH Program
PUBLIC SAFETY
L.A. County Sheriff
L.A. County Fire
Animal Control
Emergency Preparedness
FINANCE & INFORMATION
TECHNOLOGY
Financial Reporting
Accounts Payable/Receivable
Payroll
Purchasing
Information Technology
PLANNING & BUILDING
Planning/Zoning
Building & Safety/Geology
Code Enforcement
View Restoration
PUBLIC WORKS
Street Maintenance
Refuse/City Engineering
Park/Building Maintenance
Capital Projects
X
COMMISSIONS & COMMITTEES
Emergency Preparedness Committee
Equestrian Committee
Oversight Committee for the Water Quality & Flood
Protection Program
CITY ATTORNEY
Richards, Watson & Gershon
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rancho Palos Verdes
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2007
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual fmancial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
xi
The Point Vicente Lighthouse
FINANCIAL SECTION
1
The Terranea Resort Hotel Project at Long Point
2
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
5 CORPORATE PARK, SUITE 100
IRVINE, CALIFORNIA 92606-5165
(949) 399-0600 • FAX (949) 399-0610
www.diehlevans.com
December 22, 2008
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and
Members of City Council
City of Rancho Palos Verdes
Rancho Palos Verdes, California
MIICHAEL R LUDIN, CPA
CRAIG W. SPR4KER. CPA
NITIN P PATEL, CPA
ROBERT J CALLANAN, CPA
*PHILIP H HOLTKANIP. CPA
*THOMAS M. PERLOWSKI. CPA
*HARVEY J. SCHROEDER, CPA
KENNETH R MES, CPA
*WILLLJI C PENTZ, CPA
*A PROFESSIONAL. CORPORATION
We have audited the accompanying financial statements of the governmental activities, the
business -type activity, each major fund, and the aggregate remaining fund information of the City of
Rancho Palos Verdes, California, as of and for the year ended June 30, 2008, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City of Rancho Palos Verdes's management. Our responsibility
is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activity, each major fund,
and the aggregate remaining fund information of the City of Rancho Palos Verdes, California, as of
June 30, 2008, and the respective changes in financial position and cash flows, where applicable,
thereof and the respective budgetary comparison for the General and Street Maintenance Special
Revenue major governmental funds for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
OTHER OFFICES AT:
-1-
2965 ROOSEVELT STREET
CARLSBAD, CALIFORNIA 92008-2389
(760) 729-2343 • FAX (760) 729-2234
3
613 W. VALLEY PARKWAY, SUITE 330
ESCONDIDO, CALIFORNIA 92025-2598
(760) 741-3141 • FAX (760) 741-9890
In accordance with Government Auditing Standards, we have also issued our report dated
December 22, 2008, on our consideration of the City of Rancho Palos Verdes's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements and other matters. The purpose of that report is to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
The management's discussion and analysis and the other required supplementary information
identified in the accompanying table of contents are not a required part of the basic financial
statements but are supplementary information required by the accounting principles generally accepted
in the United States of America. We have applied certain limited procedures to the management's
discussion and analysis, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of this required supplementary information. However, we did not
audit the management's discussion and analysis and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Rancho Palos Verdes, California's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and schedules, and
statistical section are presented for purposes of additional analysis and are not a required part of the
basic financial statements. The combining and individual nonmajor fund financial statements and
schedules have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The introductory section and statistical section have not been subjected to
the auditing procedures applied in the audit of the basic financial statements and, accordingly, we
express no opinion on them.
-2
4
MANAGEMENT'S DISCUSSION & ANALYSIS
5
6
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2008
The Management of the City of Rancho Palos Verdes offers readers of the City of Rancho Palos
Verdes' Financial Statements this narrative overview and analysis of the City's financial activities
for the Fiscal Year ended June 30, 2008. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our Letter of
Transmittal, which can be found on pages iv -viii of this report.
Financial Highlights
The assets of the City of Rancho Palos Verdes exceed its liabilities at the close of the
Fiscal Year ended June 30, 2008, by $154,185,617 (Net Assets). Of this amount,
$38,210,923 (Unrestricted Net Assets) may be used to meet the government's ongoing
obligations to its citizens and creditors.
The City's Total Net Assets increased by $7,037,843. This increase is attributable to
several factors including receipt of Proposition 1B revenue and other restricted revenues
to be used for street improvements in FY08-09, decreased spending in other
governmental funds, receipt of Terranea environmental excise tax that has not yet been
appropriated, and completion of storm drain projects in the enterprise fund.
As of June 30, 2008, the City's Governmental Funds reported combined ending Fund
Balances of $22,844,114, a decrease of $118,519 in comparison with the prior year. The
decrease in combined ending Fund Balances is primarily attributable to Street
Maintenance Fund expenditures, which exceeded revenue in the same fund.
Approximately $13.5 million (Unreserved Fund Balance) is available for spending at the
government's discretion. The combined unreserved Fund Balance includes the RDA
Debt Service negative unreserved Fund Balance of $15,989,755.
As of June 30, 2008, unreserved/undesignated Fund Balance for the General Fund was
$12,171,332 or 57% of total General Fund expenditures and transfers out.
The City's total debt decreased by $241,539 (3%) during the current Fiscal Year. The
decrease was primarily attributable to partial payment of the RDA deferred interest
payable.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements, which are comprised of three components: 1) Government -Wide Financial
Statements; 2) Fund Financial Statements; and 3) Notes to the Financial Statements. This report
also contains other supplementary information in addition to the basic financial statements
themselves.
Government -Wide Financial Statements. The Government -Wide Financial Statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar to a
private -sector business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with
the difference between the two reported as Net Assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Rancho
Palos Verdes is improving or deteriorating.
The Statement of Activities presents information showing how the government's net assets
changed during the most recent Fiscal Year. All changes in net assets are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
See independent auditors' report.
7
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2008
result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both the Government -Wide Financial Statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the City include
general government, public safety, public works, planning, building and safety, and recreation.
The City's business -type activities include only the Water Quality and Flood Protection program
for renewal and maintenance of the City's storm drain facilities.
The Government -Wide Financial Statements include not only the City of Rancho Palos Verdes
itself (known as the Primary Government), but also a legally separate Redevelopment Agency
and a legally separate Improvement Authority for which the City of Rancho Palos Verdes is
financially accountable. Financial information for these Component Units has been included as
an integral part of the primary government.
The Government -Wide Financial Statements can be found on pages 19-21 of this report.
Fund Financial Statements. A Fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Rancho Palos Verdes, like other State and local governments, uses fund accounting to ensure
and demonstrate compliance with finance -related legal requirements. All of the Funds of the City
can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary
Funds.
Governmental Funds. Governmental Funds are used to account for essentially the same
functions reported as governmental activities in the Government -Wide Financial Statements.
However, unlike the Government -Wide Financial Statements, Governmental Fund Financial
Statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the Fiscal Year. Such information may
be useful in evaluating a government's near-term financing requirements.
Because the focus of Governmental Funds is narrower than that of the Government -Wide
Financial Statements, it is useful to compare the information presented for Governmental Funds
with similar information presented for governmental activities in the Government -Wide Financial
Statements. By doing so, readers may better understand the long-term impact of the
government's near-term financing decisions. The Governmental Balance Sheet and
Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances
provide a reconciliation to facilitate this comparison between Governmental Funds and
governmental activities.
The City of Rancho Palos Verdes maintained 32 individual Governmental Funds during the Fiscal
Year ended June 30, 2008. Information is presented separately in the Governmental Fund
Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and
Changes in Fund Balances for the General Fund, the Street Maintenance Fund, the Capital
Improvements Fund and the RDA Debt -Service Fund, all of which are considered to be major
funds. Data from the other 28 Governmental Funds are combined into a single, aggregated
presentation. Individual fund data for each of these Other Governmental Funds is provided in the
form of combining statements elsewhere in this report.
The City of Rancho Palos Verdes adopts an annual appropriated budget for each of its
Governmental Funds. A budgetary comparison statement has been provided for each
Governmental Fund to demonstrate compliance with this budget.
See independent auditors' report.
8
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2008
The basic Governmental Fund Financial Statements can be found on pages 24-32 of this report.
Proprietary Funds. The City of Rancho Palos Verdes maintains two types of Proprietary Funds.
Enterprise Funds are used to report the same functions presented as business -type activities in
the Government -Wide Financial Statements. The City uses an Enterprise Fund to account for its
Water Quality and Flood Protection Program. Internal Service Funds are an accounting device
used to accumulate and allocate costs internally among the City's various functions. The City
uses Internal Service Funds to account for its fleet of vehicles, computer systems, furniture and
equipment, Employee Benefits, and Civic Center Building Improvements. Because these
services predominantly benefit the governmental function, they have been included within
governmental activities in the Government -Wide Financial Statements.
Proprietary Fund Financial Statements provide the same type of information as the Government -
Wide Financial Statements, only in more detail. These statements can be found on pages 33-35
of this report. The Proprietary Fund Financial Statements provide separate information for the
Enterprise Fund and the Internal Service Funds. The Enterprise Fund is presented as a single
major fund of the City, while the Internal Service Funds are combined and presented as a single,
aggregated presentation in the Statement. Individual fund data for the Internal Service Funds is
provided in the form of combining statements elsewhere in this report.
Notes to the Financial Statements. The notes provide additional information that is essential to
a full understanding of the data provided in the Government -Wide and Fund Financial
Statements. The notes to the financial statements can be found on pages 38-65 of this report.
Other information. The combining statements referred to earlier in connection with Other
Governmental Funds and Internal Service Funds are presented immediately following the Notes
to the Financial Statements. Combining and individual fund statements and schedules can be
found on pages 68-118 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the City of Rancho Palos Verdes, assets exceeded liabilities by
$154,185,617 at June 30, 2008. By far, the largest portion of the City's Net Assets (72 percent)
reflects its investment in Capital Assets (e.g. Land, Infrastructure, Buildings, and Equipment).
The City uses these Capital Assets to provide services to its citizens; consequently, these assets
are not available for future spending.
City of Rancho Palos Verdes Net Assets
See independent auditors' report.
9
Governmental
Activities
Business -type
Activities
Total
June 30, 2008
June 30, 2007
June 30, 2008
June 30, 2007
June 30, 2008
June 30, 2007
Current and other assets
$ 42,756,269
$ 42,104,403
$ 8,817,059
$ 5,490,107
$ 51,573,328
$ 47,594,510
Capital assets
109,375,667
109,745,987
5,599,028
2,157,916
114,974,695
111,903,903
Total assets
152,131,936
151,850,390
14,416,087
7,648,023
166,548,023
159,498,413
Long-term liabilities outstanding
7,470,246
7,711,785
-
-
7,470,246
7,711,785
Other liabilities
3,815,109
4,406,960
1,077,051
231,894
4,892,160
4,638,854
Total liabilities
11, 285, 355
12,118,74 5
1,077,051
231,894
12,362 ,406
12,35 0,639
Invested in capital assets
109,375,667
109,745,987
5,599,028
2,157,916
114,974,695
111,903,903
Restricted
1,000,000
12,162,490
-
-
1,000,000
12,162,490
Unrestricted
30,470,914
17,823,168
7,740,008
5,258,213
38,210,922
23,081,381
Total net assets
$ 140,846,581
$ 139,731,645
$ 13,339,036
$ 7,416,129
$ 154,185,617
$ 147,147,774
See independent auditors' report.
9
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2008
An additional portion of the City's Net Assets ($1,000,000 or less than 1%) represents resources
that are subject to external restrictions on how they may be used. The remaining balance of
Unrestricted Net Assets ($38,210,922 or 25%) may be used to meet the government's ongoing
obligations to its citizens and creditors.
Governmental Activities. Governmental Activities increased the City's Net Assets by
$1,114,936, thereby accounting for 16% of the total growth in the net assets of the City.
City of Rancho Palos Verdes Changes in Net Assets
Governmental
Activitie s
June 30, 2008
Business -type
Activities
Total
1 June 30, 2007
June 30, 20081 June 30, 2007
June 30, 2008 1 June 30, 2007
Program revenues:
Charges for services $ 4,099,637 $ 2,195,987 $
Operating contributions and grants 3,569,807 4,200,344
Capital contributions and grants 1,472,19 5 317,115
General revenues:
$ 4,099,637 $ 2,195,987
3,569,807 4,200,344
1,472,195 317,115
Property taxes 10,935,253 10,235,025 - - 10,935,253 10,235,025
Other taxes 5,803,960 5,782,270 - 5,803,960 5,782,270
Other 1,854,74 8 3,460,001 1,50 4,49 5 1,559,986 3,359,243 5,019,987
Total revenues
Expenses:
Administration
Public safety
Public works
Parks and recreation
Planning, building and code
enforcement
Interest on long-term debt
Water Quality Flood Protection
27 ,735 ,60 0 1 26,190,742 1
4,724,522 4,953,440
4,044,426 3,751,377
9,025,725 9,968,791
1 ,395,769 1,438,803
2,441,32 1 2,630,897
269,708 271,000
1,50 4,49 5 1 1,559,986 1
30 0,781
270,581
2 9,24 0,09 5 1 27, 750, 728 J
4,72 4,52 2
4,04 4,42 6
9,02 5,72 5
1,39 5,76 9
2,441,321
26 9,70 8
30 0,781
4,953,440
3,751,377
9,968,791
1,438,803
2,630,897
271,000
270,581
Total expenses
21,901,471
23,014,308
300,781
270,581
22,202,252
23,284,889
Increase in net assets before transfers
5,834,129
3,176,434
1,20 3,71 4
1,289,405
7,037,843
4,465,839
Transfers
(4,719,193)
(2,016,515)
4,719,193
2,016,515
-
-
Increaseinnetassets
1,114,936
1,159,919
5,922,907
3,305,920
7,037,843
4,465,839
Net assets - beginning of fiscal year
139,731,645
138,571,726
7,416,129
4,110,209
147,147,774
142,681,935
Net assets - end of fiscal year
$140,846,581
$139,731,645
$13,339,036
$ 7,416,129
$154,185,617
$147,147,774
Key elements of this increase are as follows:
➢ The difference in the method of accounting for Capital Assets in the Governmental Funds
versus the Statement of Activities accounts for a decrease of about $370,000 in Net
Assets. The decrease in Capital Assets is primarily attributable to annual depreciation.
➢ The difference in the method of accounting for Interest Income in the Governmental
Funds versus the Statement of Activities accounts for an increase in excess of
approximately $1,100,000 in Net Assets. Unpaid, accrued interest income is deferred in
the Governmental Funds since it is not available.
➢ The excess of Internal Service Fund revenues over expenses of about $301,000. The
net revenues and expenses of Internal Service Funds are reported with governmental
activities in the Statement of Activities.
See independent auditors' report.
10
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2008
Revenues by Source — Governmental Activities
charges for
services
15%
other taxes
21%
other
7%
operating
contributions
and grants
13%
capital
contributions
property taxes and grants
39% 5%
As of the end of the current Fiscal Year, the City's Governmental Funds reported combined
ending Fund Balances of $22,844,114, a decrease of $118,519 in comparison with the prior year.
Approximately 59% of the combined ending Fund Balances (about $13.5 million) constitute
unreserved Fund Balance, which is available for spending at the City's discretion. The combined
unreserved Fund Balance includes the RDA Debt Service negative unreserved Fund Balance of
$15,989,755. The remainder of the combined ending Fund Balances is reserved to indicate that
it is not available for new spending because it has already been committed 1) to reserve the
principal balance of loans made to the City's Redevelopment Agency ($6,175,060), and 2) for a
variety of other restricted purposes ($3,193,994).
The General Fund is the chief operating fund of the City of Rancho Palos Verdes. At the end of
the current Fiscal Year, unreserved Fund Balance of the General Fund was $13,449,247, while
total Fund Balance reached $20,094,337. As a measure of the General Fund's liquidity, it may be
useful to compare both Unreserved Fund Balance and Total Fund Balance to total fund
expenditures and transfers out. Unreserved Fund Balance represents 63% of total General Fund
uses, while total Fund Balance represents 94% of that same amount.
During Fiscal Year 07-08, the Fund Balance of the City's General Fund decreased by $1,653,592.
The key factor in this decrease is attributable to the General Fund subsidizing the Water Quality
Flood Protection Enterprise Fund.
The Debt Service Fund has a net negative Fund Balance of $15,528,443. The Redevelopment
Agency's debt to the City is recorded in the Debt Service Fund: However, because there are
currently no assets to extinguish that debt, the fund carries a negative Fund Balance. The net
decrease in the debt service Fund Balance during the current year was $1,072,957, which
primarily represents accumulated interest on the advance from the City to the Redevelopment
Agency.
Proprietary Funds. The City's Proprietary Funds provide the same type of information found in
the Government -Wide Financial Statements, but in more detail. Unrestricted Net Assets of the
Enterprise Fund at the end of the year amounted to $7,740,008. Unrestricted Net Assets of the
Internal Service Funds at the end of the year amounted to $5,430,591. The total growth in
Proprietary Fund type net assets was $6,224,200.
See independent auditors' report.
11
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2008
General Fund Budgetary Highlights
The difference between original budgeted expenditures and the final amended budget was a
decrease of $1,471,317; and is briefly summarized as follows:
A decrease of $1,277,915 was attributable to appropriations continued to FY08-09.
An increase of approximately $785,536 was attributable to appropriations continued from
FY06-07.
Salary budgets across several programs were decreased by about $380,000 to account
for vacant positions.
The budget for legal services was decreased by about $530,000, due to a decrease in
litigation activity and careful management of general attorney services.
Other immaterial decreases totaled approximately $70,000.
Street Maintenance Fund Budgetary Highlights
The difference between original budgeted expenditures and the final amended budget was an
increase of $80,647, which was primarily attributable to an addition to the budget for maintenance
of Palos Verdes Drive South in the Portuguese Bend area of the City's active landslide.
Redevelopment Agency Debt Service Fund Budgetary Highlights
There were no changes to the Redevelopment Agency Debt Service Fund budget for FY07-08.
Capital Improvements Capital Projects Fund Budgetary Highlights
The difference between original budgeted expenditures and the final amended budget was an
increase of $1,506,572; and is briefly summarized as follows:
A decrease of $3,192,707 was attributable to appropriations continued to FY08-09.
An increase of approximately $3,727,100 was attributable to appropriations continued
from FY06-07.
An increase of about $693,000 to the arterial pavement resurfacing program to reflect
additional funding available from state Proposition 1B monies.
The addition of $236,000 to the budget for a traffic signal upgrade at the intersection of
Crenshaw and Crestridge Roads.
➢ Other immaterial increases totaled about $43,000.
Capital Asset and Debt Administration
Capital Assets. The City's investment in Capital Assets for its governmental activities as of June
30, 2008, amounts to $109,375,667 (net of accumulated depreciation). This investment in capital
assets includes land, buildings, park improvements, roadways, sewer, storm drains, vehicles,
computer equipment, furniture, other equipment, and construction in progress. During the current
Fiscal Year, the City's investment in capital assets increased by about $3 million or less than 3
percent.
See independent auditors' report.
12
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2008
Major capital asset events during the current Fiscal Year included the following:
Depreciation of $3.3 million was recorded for the City's Capital Assets.
Arterial and residential street overlay was completed at a cost of about $2.5 million.
Property was purchased for about $1.4 million to provide right of way and facilitate
construction of the McCarrell Canyon drainage system. Construction of the drainage
system began prior to June 30, 2008 at a cost of about $1 million.
The Sunnyside Ridge drainage project was completed at a cost of about $380,000.
Storm drain lining, which extends the useful life of storm drain pipes, was completed at a
cost of about $470,000.
City of Rancho Palos Verdes Capital Assets
(net of depreciation)
Governmental
Activities
June 30, 2008 June 30, 2007
Capital assets not being depreciated
Land $ 32,139, 008 $ 32,132, 781
Construction in progress 156,354 89,256
Total capital assets not being depreciated 32,295,362 32,222,037
Capital assets being depreciated, net
Buildi ngs
Vehicles
Computer equipment
Furniture, fixtures and equipment
Infrastructure
Roadway system
Sewer system
Storm drain system
Park system
7,174,749
163,410
69,569
142,659
46, 682, 868
9,812,802
10, 932, 378
2,101, 870
7,354,680
101,452
151,385
111,058
46,138, 492
10, 267, 911
11,182, 857
2,216,116
Total capital assets being depreciated, net
77, 080, 305 77, 523, 951
Capital Assets, net $ 109,375,667 $ 109,745,988
Additional information on the City's Capital Assets can be found in Note # 4 on pages 52-53 of
this report.
Long-term debt. At the end of the current Fiscal Year, the City of Rancho Palos Verdes had
total debt outstanding of $7,470,246. Of this amount, $7,155,536 is a liability of the
Redevelopment Agency.
See independent auditors' report.
13
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2008
City of Rancho Palos Verdes Outstanding Debt
Governmental
Activitie s
June 30, 2008 I June 30, 2007
RDA Tax Increment Bond $ 5,370,000 $ 5,410,000
RDADeferred Interest Payable 1,785,536 2,061 ,329
Employee compensated absences 314,710 240,456
Total
1 $ 7,470,246 I $ 7,711,785
The City's total debt decreased by $241,539 (3%) during the current Fiscal Year, due to partial
payment of the RDA deferred interest payable.
State statutes limit the amount of general obligation debt a governmental entity may issue to 15
percent of its total assessed valuation. The current debt limitation for the City of Rancho Palos
Verdes is $1,274,916,000. Additional information on the City's long-term debt can be found in
Note # 5 on pages 53-56 of this report.
Economic Factors and Next Year's Budgets and Rates
Local property values remain strong; therefore, Property Tax Revenue (approximately
39% of City -Wide Revenues) remains unaffected by the downturn in the economy. This
factor was considered in preparing the City's Budget for FY08-09.
Requests for Information
This Financial Report is designed to provide a general overview of the financial position of the
City of Rancho Palos Verdes for all those with an interest in the government's finances.
Questions concerning any of the information provided in this report, or requests for additional
financial information, should be addressed to the Finance and Information Technology
Department at 30940 Hawthorne Boulevard, Rancho Palos Verdes, CA 90275 or
finances rpv.com.
See independent auditors' report.
14
BASIC FINANCIAL STATEMENTS
15
The pilot brush clearance program utilizing goats at City Hall
16
GOVERNMENT -WIDE STATEMENTS
17
A view of Catalina Island from the Rancho Palos Verdes coastline
18
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET ASSETS
June 30, 2008
ASSETS:
Cash and cash equivalents
Receivables:
Taxes
Interest
Notes
Other
Prepaid costs
Land held for development
Capital assets, not being depreciated:
Land
Construction in progress
Capital assets, being depreciated, net:
Property and equipment
Buildings and improvements
Infrastructure
TOTAL ASSETS
LIABILITIES:
Accounts payable and accrued liabilities
Interest payable
Retentions payable
Unearned revenue
Deposits payable
Long-term liabilities:
Due within one year
Due beyond one year
TOTAL LIABILITIES
NET ASSETS:
Invested in capital assets, net of related debt
Restricted for:
Community development:
Nonexpendable
Unrestricted
TOTAL NET ASSETS
Governmental
Activities
Business -type
Activities
Total
$ 37,959,600 $ 8,758,718 $ 46,718,318
807,505
194,608
770,147
1,183,278
1,138, 739
702,392
32,139,008
156,354
375,638
7,174, 749
69,529,918
152,131, 936
2,288,054
20,883
9,465
113,761
1,382,946
233,564
7,236,682
11,285,355
109,375,667
1,000,000
30,470,914
34,223
24,118
1,408,493
1,850,425
8,269
2,331,841
14,416,087
960,490
116,561
1,077,051
5,599,028
7,740,008
807,505
228,831
770,147
1,207,396
1,138, 739
702,392
33,547,501
2,006,779
383,907
7,174, 749
71,861,759
166,548,023
3,248,544
20,883
126,026
113,761
1,382,946
233,564
7,236,682
12,362,406
114,974,695
1,000,000
38,210,922
$ 140,846,581 $ 13,339,036 $ 154,185,617
See independent auditors' report and notes to financial statements.
19
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
For the year ended June 30, 2008
Functions/programs
Governmental Activities:
Administration
Public safety
Public works
Parks and recreation
Planning, building and
code enforcement
Interest on long-term debt
Total governmental activities
Business -type Activity:
Water Protection Flood Control
Total Primary Government
Expenses
$ 4,724,522
4,044,426
9,025,725
1,395,769
2,441,321
269,708
21,901,471
300,781
$ 22,202,252
Charges for
Services
Program Revenues
Operating
Grants and
Contributions
Capital
Grants and
Contributions
$ 537,993 $ 18 $
316,378 100,000
1,001,787 2,863,781
483,514 360,030
1,759,965 245,978
4,099,637 3,569,807
1,472,195
1,472,195
$ 4,099,637 $ 3,569,807 $ 1,472,195
General revenues:
Taxes:
Property tax, levied for general purpose
Property tax, Redevelopment Agency
tax increment
Storm Drain user fees levied for water quality
and flood protection
Transient occupancy tax
Sales tax
Franchise tax
Motor vehicle in lieu tax (unrestricted)
Utility user tax
Other taxes
Investment income
Unrestricted grants, contributions and other revenue
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning of year
Net assets - end of year
See independent auditors' report and notes to financial statements.
20
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activity
Total
$ (4,186,511) $ $ (4,186,511)
(3,628,048) (3,628,048)
(3,687,962) (3,687,962)
(552,225) (552,225)
(435,378) (435,378)
(269,708) (269,708)
(12,759,832) (12,759,832)
- (300,781) (300,781)
(12,759,832) (300,781) (13,060,613)
9,937,707 9,937,707
997,546 997,546
- 1,221,825 1,221,825
26,076 26,076
1,056,436 1,056,436
1,598,645 1,598,645
195,987 195,987
2,329,281 2,329,281
597,535 597,535
1,554,692 282,670 1,837,362
300,056 300,056
(4,719,193) 4,719,193
13,874,768 6,223,688 20,098,456
1,114,936 5,922,907 7,037,843
139,731,645 7,416,129 147,147,774
$ 140,846,581 $ 13,339,036 $ 154,185,617
21
A view of the fogbank between Catalina Island and the Rancho Palos Verdes
coastline
22
FUND FINANCIAL STATEMENTS
23
CITY OF RANCHO PALOS VERDES
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2008
ASSETS
Cash and cash equivalents
Receivables:
Taxes
Interest
Notes
Other
Due from other funds
Prepaid items
Advances to other funds
Land held for development
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable and accrued liabilities
Due to other funds
Retentions payable
Deferred revenue
Advances to Redevelopment Agency
Deposits payable
TOTAL LIABILITIES
FUND BALANCES (DEFICIT):
Reserved for:
Reimbursement settlement agreement
Prepaid items
Advances to other funds
Land held for development
Housing set-aside
Unreserved:
Designated for continuing appropriations:
General fund
Special revenue funds
Capital projects funds
Undesignated and reported in:
General fund
Special revenue funds
Debt service fund
Capital projects funds
Permanent fund
TOTAL FUND BALANCES (DEFICIT)
TOTAL LIABILITIES AND FUND BALANCES
General
$ 15,216,823
771,884
74,564
500,079
150,014
470,030
16,010,044
Special
Revenue
Street
Maintenance
$ 591,462
2,549
188,731
$ 33,193,438 $ /82, /42
$ 1,688,034 $ 204,153
1,939
10,026,182
1,382,946
13,099,101 204,153
470,030
6,175,060
1,277,915
12,171, 332
20,094,337
$ 33,193,438
See independent auditors' report and notes to financial statements
24
192,007
386,582
578,589
$ 782,742
Debt
Service
Redevelopment
Agency
Capital
Projects
Capital
Improvements
$ 20,341 $ 3,335,418
461,312
$ 481,6b3
12,831
243,200
$ 3,b91,449
$ 52 $ 183,187
16,010,044
16,010,096
461,312
(15,989,755)
7,526
4,770
195,483
3,192,707
203,259
(15,528,443) 3,395,966
$ 481,653 $ 3,591,449
Other
Governmental
Funds
$ 13,509,155
35,621
79,842
365,181
251,268
58,900
702,392
$ 16,002,369
$ 183,499
150,014
365,181
698,694
1,000,000
58,900
702,392
501,360
1,704,244
1,154,095
7,106,989
1,704,404
371,281
14,303,665
$ 15,002,359
Total
Governmental
Funds
$ 32,673,199
807,505
169,786
365,181
1,183,278
150,014
990,242
16,010,044
702,392
$ 63,061,641
$ 2,258,925
150,014
9,465
10, 396,133
16,010,044
1,382,946
30,207,527
1,000,000
990,242
6,175,060
702,392
501,360
1,277,915
1,896,251
4,346,802
12,171, 332
7,493,571
(15,989,755)
1,907,663
371,281
22, 844,114
$ 53,051,641
The Point Vicente Interpretive Center and Whale Watching Site
26
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
June 30, 2008
Fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Net Assets are different because:
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported in the governmental funds balance sheet.
Interest accrued on the advance receivable in the General Fund is not paid by the owing funds
and, therefore, is recorded as deferred revenue and added to the balance of the advance. The
Statement of Net Assets reports on the full accrual basis and does not defer currently unavailable
revenues.
Intergovernmental revenues earned, but not available, are deferred in the fund financial statements.
The revenue is not deferred on the Statement of Activities.
Interest expenditures are recognized when due, and therefore, interest payable is not recorded in
the governmental funds.
Long-term notes receivable are not current available resources and, therefore, do not affect the
governmental fund balance.
Long-term liabilities are not due and payable in the current period and, therefore, are not reported
in the governmental funds.
Internal service funds are used by management to charge the costs of certain activities, including
equipment and building replacement and employee benefits, to individual funds. The assets
and liabilities of the internal service funds are included in the Statement of Net Assets.
Net assets of governmental activities
See independent auditors' report and notes to financial statements.
27
$ 22,844,114
109,000,029
9,834,985
82,206
(20,883)
770,147
(7,470,246)
5,806,229
$ 140,846,581
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2008
Special
Revenue
Street
General Maintenance
REVENUES:
Taxes $ 15,291,092 $
Licenses and permits 1,913,542 -
Fines and forfeitures 259,639
Use of money and property 1,325,768 46,025
Charges for services 59,606 586
Revenue from other agencies 557,091 766,919
Other revenues 141,200
TOTAL REVENUES 19,547,938 813,530
EXPENDITURES:
Current:
Administration 4,262,507
Public safety 4,028,826
Public works 2,311,813
Parks and recreation 1,281,523
Planning, building and code enforcement 2,474,265
Pass through to other agencies
Capital outlay
Debt service:
Principal
Interest and fiscal charges
1,718,136
TOTAL EXPENDITURES 14,358,934 1,718,136
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,189,004 (904,606)
OTHER FINANCING SOURCES (USES):
Transfers in 231,773 729,931
Transfers out (7,074,369) -
TOTAL OTHER FINANCING SOURCES (USES) (6,842,596) 729,931
NET CHANGE IN FUND BALANCES (1,653,592) (174,675)
FUND BALANCES (DEFICIT) - BEGINNING OF YEAR 21,747,929 753,264
FUND BALANCES (DEFICIT) - END OF YEAR $ 20,094,337 $ 578,589
See independent auditors' report and notes to financial statements
28
Debt
Service
Redevelopment
Agency
$ 797,901 $
81
797,982
16,491
168,784
315,793
1,369,871
1,870,939
(1,072,957)
(1,072,957)
(14,455,486)
$ (15,528,443)
Capital
Projects
Capital
Improvements
120,263
1,472,194
1,592,457
2,803,675
Other
Governmental
Funds
$ 973,345
616,009
1,851,258
1,422,162
4,862,774
131,526
15,600
1,737,991
21,876
308,605
2,803,675 2,215,598
(1,211,218) 2,647,176
1,815,238 380,740
(849,231)
1,815,238 (468,491)
604,020 2,178,685
2,791,946 12,124,980
$ 3,395,966 $ 14,303,665
Total
Governmental
Funds
$ 17,062,338
1,913,542
259,639
2,108,146
60,192
4,647,462
1,563,362
27,614,681
4,410,524
4,044,426
5,767,940
1,281,523
2,496,141
168,784
3,112,280
315,793
1,369,871
22,967,282
4,647,399
3,157,682
(7,923,600)
(4,765,918)
(118,519)
22,962,633
$ 22,844,114
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2008
Net change in fund balances - total governmental funds $ (118,519)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities,
the cost of those assets is allocated over their estimated useful lives as depreciation expense, or
are allocated to the appropriate functional expense when the cost is below the capitalization threshold.
Asset disposals are also not recognized in the governmental funds. This activity reconciled as follows:
Cost of assets capitalized 2,763,802
Depreciation expense (3,145,866)
Unpaid accrued interest income is deferred in the governmental funds since it is not available. This
income is accrued in the Statement of Activities. 1,100,371
Intergovernmental revenues earned, but not available are deferred in the fund financial statements. (20,098)
Interest expenditures are recognized when due, and therefore, interest payable is not recorded in the
governmental funds. This amount represents the net change in interest payable. (209)
Increases in long-term notes receivable use current financial resources and are included in the expenditures
of governmental funds. Repayments of long-term notes receivables provide current financial resources
and are included in the revenues of governmental funds. These changes in notes receivable are not
reflected in the revenues or expenses of the Statement of Activities. This amount represents the net
change in the long-term notes receivable. (7,377)
Compensated absences expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds. (74,254)
Principal payments on debt are recorded as expenditures in the funds. The expenditure is not recognized
in the Statement of Activities since it reduces the liability reported on the Statement of Net Assets.
Principal payments consisted of the following:
Redevelopment Agency tax increment bond 40,000
Redevelopment Agency deferred interest payable 275,793
Internal service funds are used by management to charge the costs of certain activities, including equipment
and building replacement and employee benefits, to individual funds. The net revenues/(expenses) of the
internal service funds (excluding transfers and interest income) are reported with governmental activities. 301,293
Change in net assets of governmental activities $ 1,114,936
See independent auditors' report and notes to financial statements.
30
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the year ended June 30, 2008
REVENUES:
Taxes
Licenses and permits
Fines and forfeitures
Use of money and property
Charges for services
Revenue from other agencies
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Administration
Public safety
Public works
Parks and recreation
Planning, building and code enforcement
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
Budgeted Amounts
Original Final
$ 14,963,200 $ 15,403,600
1,612,350 1,837,350
204,000 274,000
1,284,000 1,519,000
48,000 48,000
446,900 675,230
141,200 141,200
18, 699, 650 19, 898, 380
4,981,190
4,160, 050
3,040,574
1,337,290
2,731,250
16, 250, 354
2,449,296
261,774
(5,476,044)
(5,214,270)
(2,764,974)
21,747,929
$ 18,982,955
See independent auditors' report and notes to financial statements.
31
4,367,575
4,037,154
2,454, 896
1,350,801
2,568,611
14, 779, 037
5,119, 343
261,774
(7,090,369)
(6,828,595)
(1,709,252)
21,747,929
$ 20,038,677
Actual
$ 15,291,092
1,913,542
259,639
1,325,768
59,606
557,091
141,200
19, 547, 938
4,262,507
4,028,826
2,311,813
1,281,523
2,474,265
14,358,934
5,189, 004
231,773
(7,074,369)
(6,842,596)
(1,653,592)
21, 747, 929
$ 20,094,337
Variance with
Final Budget
Positive
(Negative)
$ (112,508)
76,192
(14,361)
(193,232)
11,606
(118,139)
(350,442)
105,068
8,328
143,083
69,278
94,346
420,103
69,661
(30,001)
16,000
(14,001)
55,660
55,660
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STREET MAINTENANCE SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
Charges for services
Revenue from other agencies
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
Budgeted
Original
$ 31,700
15,300
796,000
843,000
Amounts
Final
31,700
15,300
796,000
843,000
Actual
$ 46,025
586
766,919
Variance with
Final Budget
Positive
(Negative)
$ 14,325
(14,714)
(29,081)
813,530 (29,470)
1,748,905 1,829,552 1,718,136
(905,905) (986,552) (904,606)
730,500 737,500 729,931
(175,405) (249,052) (174,675)
753,264 753,264 753,264
577,859 $ 504,212 $ 578,589
See independent auditors' report and notes to financial statements.
32
111,416
81,946
(7,569)
74,377
74,377
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Receivables:
Interest
Other
Prepaid items
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
Capital assets, not being depreciated:
Land
Construction in progress
Capital assets, being depreciated:
Property and equipment
Infrastructure
Accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities
Retentions payable
TOTAL CURRENT LIABILITIES
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
Business -type
Activity -
Water Quality
Flood Protection
Enterprise Fund
Governmental
Activities -
Internal
Service
Funds
$ 8,758,718 $ 5,286,401
34,223 24,822
24,118 -
- 148,497
8,817,059 5,459,720
1,408,493
1,850,425
11,813
2,456,634
(128,337)
5,599,028
14,416,087
960,490
116,561
1,077,051
5,599,028
7,740,008
$ 13,339,036
See independent auditors' report and notes to financial statements.
33
1,328,094
(952,456)
375,638
5,835,358
29,129
29,129
375,638
5,430,591
$ 5,806,229
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS - PROPRIETARY FUNDS
For the year ended June 30, 2008
Business -type Governmental
Activity- Activities -
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
OPERATING REVENUES:
Charges for services $ - $ 1,899,030
OPERATING EXPENSES:
Personnel services 11,517
Materials and supplies 1,462
Maintenance 229,905
Depreciation 57,897
TOTAL OPERATING EXPENSES 300,781
OPERATING INCOME (LOSS) (300,781)
1,433,990
136,300
99,793
177,604
1,847,687
51,343
NONOPERATING REVENUES:
Interest income 282,670 203,225
Storm drain user fees 1,221,825 -
TOTAL NONOPERATING REVENUES 1,504,495 203,225
INCOME BEFORE TRANSFERS 1,203,714 254,568
TRANSFERS IN 4,719,193 46,725
CHANGE IN NET ASSETS 5,922,907 301,293
TOTAL NET ASSETS - BEGINNING OF YEAR 7,416,129 5,504,936
TOTAL NET ASSETS - END OF YEAR $ 13,339,036 $ 5,806,229
See independent auditors' report and notes to financial statements.
34
CITY OF RANCHO PALOS VERDES
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services provided
Payments to suppliers
Payments to employees
NET CASH USED BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Receipts from storm drain user fees
Cash received from other funds
NET CASH PROVIDED BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS - END OF YEAR
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash used by operating activities:
Depreciation
Changes in operating assets and liabilities:
Increase in prepaid items
Decrease in accrued liabilities
NET CASH USED BY OPERATING ACTIVITIES
See independent auditors' report and notes to financial statements.
35
Business -type
Activity -
Water Quality
Flood Protection
Enterprise Fund
(231,367)
(11,517)
(242,884)
(1,253,852)
1,219,127
4,719,193
5,938,320
271,702
4,713,286
4,045,432
$ 8,758,718
Governmental
Activities -
Internal
Service
Funds
$ 1,899,030
(447,007)
(1,586,256)
(134,233)
(189,347)
46,725
46,725
224,705
(52,150)
5,338,551
$ 5,286,401
$ (300,781) $
57,897
$ (242,884) $
51,343
177,604
(25,363)
(337,817)
(134,233)
36
NOTES TO FINANCIAL STATEMENTS
37
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Rancho Palos Verdes (the City) conform to
accounting principles generally accepted in the United States of America as
applicable to governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for governmental accounting and
financial reporting principles. The following is a summary of the significant
policies.
A. Reporting Entity
The reporting entity, "City of Rancho Palos Verdes", includes the accounts of the
City, the Rancho Palos Verdes Redevelopment Agency (the RDA), and the Joint
Powers Improvement Authority (the Authority).
The City was incorporated on September 7, 1973, as a General Law City and
operates under a Council/Manager form of government.
The RDA was formed in 1984 pursuant to the State of California Health and
Safety Code Section 33000 entitled "Community Redevelopment Law". Its
purpose is to finance long-term capital improvements designed to eliminate
physical and economic blight in a project area through stabilization of hazardous
landslides.
The Authority was formed on September 4, 1990, in accordance with the
provisions of the Reimbursement and Settlement Agreement, dated October 27,
1987, entered into by the City, the RDA, and the County of Los Angeles (the
County) in connection with the Horan Lawsuit. The Agreement requires funds to
be set aside and expended by the Authority to maintain landslide abatement
improvements installed and constructed by the RDA.
The criteria used in determining the scope of the reporting entity are based on
the provisions of GASB Statement 14. The City of Rancho Palos Verdes is the
primary government unit. Component units are those entities which are
financially accountable to the primary government, either because the City
appoints a voting majority of the component unit's Board, or because the
component unit will provide a financial benefit or impose a financial burden on
the City. The City has accounted for both the RDA and the Authority as "blended"
component units. Despite being legally separate entities, the RDA and the
Authority are so intertwined with the City, they are, in substance, part of the City's
operations.
See independent auditors' report.
38
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accordingly, the balances and transactions of the RDA are reported as separate
Special Revenue, Debt Service, and Capital Projects Funds. The balances and
transactions of the Authority are reported as separate Permanent and Special
Revenue Funds. The following specific criteria were used in determining that the
RDA and the Authority are "blended" component units:
1) The members of the City Council also act as the governing body of both the
RDA and the Authority.
2) The City, the RDA and the Authority are financially interdependent. The City
subsidizes maintenance operations performed by the Authority. The City makes
loans to the RDA for use on redevelopment projects. Available property tax
revenues of the RDA will be used to repay the loans from the City. It is not
anticipated that tax increment revenues will be available to repay the loans any
time in the immediate future.
3) Employees of the City manage both the RDA and the Authority.
Separately issued financial statements for both the RDA and the Authority may
be obtained at the City's administrative offices.
Participation in Public Entity Joint Powers Authority
The City is a member of the Palos Verdes Peninsula Transit Joint Powers
Authority (the Transit Authority). The Transit Authority is comprised of four
member cities and is organized under a Joint Powers Agreement pursuant to the
California Government Code. The purpose of the Authority is to study,
implement, and provide a public transit system within and around the Palos
Verdes Peninsula. These transit services include Palos Verdes Transit, Dial -A -
Ride, and a fixed route shuttle service. Periodic deposits are paid by member
Cities and are adjusted retrospectively to cover costs. Costs are prorated among
all participating Cities based on population.
The City does not have an equity interest in the Transit Authority; therefore, no
amount has been reported in the Statement of Net Assets. However, the City
does have an ongoing financial interest, because the City is able to influence the
operations of the Authority so that the Authority uses its resources on behalf of
the City. Also, an ongoing financial responsibility exists because the Authority is
dependent on continued funding from the City. The condensed financial
information of the Authority has not been reproduced in this report, but is
available upon request from the Authority by emailing
See independent auditors' report.
39
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ovtransit(c�palosverdes.com or mailing a request to P.O. Box 2656, Palos Verdes
Peninsula, CA 90274.
B. Accountina and Reoortina Policies
The City has conformed to the pronouncements of the Governmental Accounting
Standards Board (GASB), which are the primary authoritative statements of
accounting principles generally accepted in the United States of America
applicable to State and Local governments. In accordance with GASB Statement
No. 20, the City applies all applicable Financial Accounting Standards Board
(FASB) pronouncements, as well as those of its predecessors, issued on or
before November 30, 1989, unless any such pronouncements contradict GASB
pronouncements. The City also applies all FASB Statements and Interpretations
issued after November 30, 1989, except those that conflict with or contradict
GASB pronouncements.
C. Description of Funds
The accounts of the City are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self -balancing accounts that comprise its
assets, liabilities, fund equity, revenues, and expenditures. The following are
types of funds used:
Governmental Fund Types
• General Fund — Used to account for all financial resources except those that
are required to be accounted for in another fund.
• Special Revenue Funds — Used to account for the proceeds of specific revenue
sources that are restricted by law or administrative action for specified purposes.
• Debt Service Fund — The debt service fund of the RDA is used to account for
property tax increment revenue and related interest income. Disbursements from
this fund consist mainly of principal and interest on RDA indebtedness.
• Capital Projects Funds — Used to account for financial resources used for the
construction of specific capital projects.
See independent auditors' report.
40
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
• Permanent Fund — Used to account for resources legally restricted to the extent
that only earnings, and not principal, may be used for purposes that support the
reporting government's programs.
Proprietary Fund Types
• Enterprise Funds — Used to finance and account for the acquisition, operation,
and maintenance of the City's facilities and services; which are supported
primarily by user charges.
• Internal Service Funds — Used to account for the financing of goods or services
provided by one department of the City to other departments on a cost -
reimbursement basis.
D. Basis of Accounting/Measurement Focus
Government — Wide Financial Statements
The City's Government -Wide Financial Statements include a "Statement of Net
Assets" and a "Statement of Activities". These two statements present
summaries of Governmental Activities for the City.
These statements are presented on an "economic resources" measurement
focus and the accrual basis of accounting. Accordingly, all of the City's assets
and liabilities, including capital assets, infrastructure, and long-term debt, are
included in the accompanying Statement of Net Assets. The Statement of
Activities presents changes in net assets. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned, while expenses
are recognized in the period in which the liability is incurred. The Statement of
Activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function. Program revenue transactions for the
City are reported in three categories: 1) Charges for Services, 2) Operating
Grants and Contributions, and 3) Capital Grants and Contributions. Charges for
Services include revenues from customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function.
Operating Grants and Contributions include revenues restricted to meeting the
requirements of a particular operating function and may include state shared
revenues and grants. Capital Grants and Contributions include revenues
restricted to meeting the requirements of a particular capital function and may
include grants and developer fees. Taxes and other items not properly included
See independent auditors' report.
41
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
among program revenues are reported instead as general revenues. Internal
balances in the Governmental -Wide Statements have been eliminated as
prescribed by GASB Statement No. 34.
Governmental Fund Financial Statements
Governmental fund financial statements include a "Balance Sheet —
Governmental Funds" and "Statement of Revenues, Expenditures, and Changes
in Fund Balances — Governmental Funds" for all major and other governmental
funds. An accompanying schedule is presented to reconcile and explain the
differences in fund balances as presented in these statements to the Net Assets
presented in the Government -Wide Financial Statements. The City has
presented all major funds that met qualifications of GASB Statement No. 34. In
addition, the City has presented the Street Maintenance Special Revenue Fund
as a major fund because the City believes the financial position and activities of
this fund are significant to the City as a whole.
All governmental funds are accounted for on a spending or "current financial
resources" measurement focus and the modified accrual basis of accounting.
Accordingly, only current assets and current liabilities are included on the
Balance Sheets. The Statement of Revenues, Expenditures and Changes in
Fund Balances present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in fund balances. Revenues
are recognized in the accounting period in which they become susceptible to
accrual, that is, when they become both measurable and available to finance
expenditures of the current period. "Measurable" means that the amount of the
transaction can be determined, and "available" means collectible within the
current period or soon enough thereafter to be used to pay liabilities of the
current period. Accrued revenues include property taxes received within 60 days
after year-end (see Note #10), taxpayer -assessed taxes such as sales taxes, and
earnings on investments. Grant funds earned but not received are recorded as a
receivable, and grant funds received before the revenue recognition criteria have
been met are reported as deferred revenues. Expenditures are recorded when
the fund liability is incurred, if measurable, except for immature interest on
general long-term debt, which is recognized when due.
The City reports the following major governmental funds
The General Fund is the City's primary operating fund. It accounts for all financial
resources of the City, except those that are required to be accounted for in
another fund.
See independent auditors' report.
42
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Street Maintenance Special Revenue Fund is used to account for state -
shared highway users tax used for street maintenance, right-of-way acquisition
and street construction.
The RDA Debt Service Fund is used to account for the accumulation of
resources and for the payment of principal and interest on the RDA's debt.
The Capital Improvement Projects Fund is used to account for funds used for the
City's capital improvement projects.
Proprietary Fund Financial Statements
Proprietary fund types are accounted for using the "economic resources"
measurement focus and accrual basis of accounting. This means that all assets
and liabilities (whether current or non-current) associated with the activity are
included on the balance sheet. Fund equity is presented as total net assets. The
operating statement of proprietary funds presents increases (revenues) and
decreases (expenses) in total net assets. Revenues are recognized when they
are earned and expenses are recognized when the liability is incurred.
Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenues
of the City's enterprise and internal service funds are charges for services.
Operating expenses for the enterprise and internal service funds include the
costs of services, employee benefits, maintenance of capital assets, and
depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
The City uses the internal service funds to finance and account for goods and
services provided by one City department to other City departments, including
the purchase and maintenance of equipment, replacement of buildings and
employee benefit. The City's internal service funds are presented in the
proprietary funds financial statements. Because the principal users of the internal
services are the City's governmental activities, the financial statements of the
internal service funds are consolidated into the governmental column when
presented in the government -wide financial statements. To the extent possible,
the cost of these services is reported in the appropriate functional activity
(administration, public safety, public works, etc.).
See independent auditors' report.
43
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The City reports the following major enterprise fund
The Water Quality Flood Protection Fund is used to account for voter approved
storm drain user fees used to repair and replace the City's storm drain facilities.
E. Budgetary Accounting
Annual budgets are adopted on a basis consistent with GAAP for all
governmental funds. All annual appropriations lapse at fiscal year-end. Budget
control is maintained over all accounts, and expenditures are not allowed to
exceed appropriations at the department/function level. Throughout the year, the
City Council made several supplementing budgetary adjustments to the General
fund, Special Revenue funds, Capital Projects funds, Proprietary funds and the
Permanent fund. These adjustments resulted in a net appropriation increase in
the amount of $1,600,439. This increase resulted primarily from amounts carried
over from FY06-07.
Under Article XIIIB of the California Constitution (the Gann Spending Limitation
Initiative), the City is restricted as to the amount of annual appropriations from
the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations,
the excess must either be refunded to the State Controller, returned to the
taxpayers through revised tax rates or revised fee schedules, or an excess in one
year may be offset against a deficit in the following year. For the fiscal year
ended June 30, 2008, based on calculations by City Management, proceeds of
taxes did not exceed related appropriations.
F. Advances to Other Funds
Long-term inter -fund advances are recorded as a receivable in the advancing
governmental fund and as a liability in the fund receiving the advance. Accrued
unpaid interest, for which there is no immediately available resources to pay, is
deferred in the advancing governmental fund and the principal portion of the
advance is reported as a reservation of fund balance.
G. Capital Assets
Capital assets include land, machinery and equipment (vehicles, computers,
etc.), buildings and improvements, and infrastructure assets (street systems,
storm drains, sewer systems, etc.); and are reported in Governmental Activities
column of the Government -Wide Financial Statements. Capital assets are
defined by the City as all land and buildings, vehicles, computers and equipment
See independent auditors' report.
44
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
with an initial individual cost of more than $5,000; and improvements and
infrastructure assets with costs of more than $100,000. Such assets are
recorded at historical cost or estimated historical cost if purchased or
constructed. Donated or annexed capital assets are recorded at estimated
market value at the date of donation or annexation.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized. Depreciation is
recorded in the Government -Wide Financial Statements on a straight-line basis
over the useful life of the assets as follows:
Buildings and improvements
Vehicles, computers, and equipment
Infrastructure Assets
Roadway Network
Sewer Network
Storm Drain Network
Parks and Recreation Network
H. Employee Compensated Absences
25 to 50 years
3 to 10 years
10 to 100 years
25 to 50 years
30 to 100 years
25 years
City employees may receive from 10 to 20 days vacation time each year,
depending upon length of service. An employee may accumulate earned
vacation time up to a maximum of two years' worth of accrued vacation leave.
Upon termination, employees are paid the full value of their unused vacation time
at their existing salary. There is no fixed payment schedule for employee
compensated absences.
At June 30, 2008, vested accrued vacation and compensatory time amounted to
$314,710.
I. Investments
The City has adopted the provisions of Governmental Accounting Standards
Board (GASB) Statement No 31, "Accounting and Financial Reporting for Certain
Investments and External Pools", which require governmental entities to report
certain investments at fair value in the balance sheet and recognize the
corresponding change in the fair value of investments in the year in which the
change occurred. In accordance with GASB Statement No. 31, the City has
adjusted certain investments to fair value (when material).
See independent auditors' report.
45
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Investments are included within the Financial Statement classifications of "Cash
and Cash Equivalents" and are stated at fair value, (see Note #2).
J. Cash and Cash Eauivalents
For purposes of the statement of cash flows of the proprietary funds, all cash and
investments with an original maturity of 90 days or less are considered to be
cash and cash equivalents. As explained in Note #2, the City pools investment
funds for maximum return. A substantial portion of these investments is held in
short-term U.S. Treasury securities and the State Treasurer's Local Agency
Investment Fund, which is a highly liquid investment pool available to local
governmental agencies. The City has no non-cash investing, capital, or financing
activities to be reported on the statement of cash flows.
K. Claims and Judgments
When it is probable that a claim liability has been incurred, and the amount of the
loss can be reasonably estimated, the City records the estimated loss, net of any
insurance coverage under its self-insurance program. At June 30, 2008, in the
opinion of the City Attorney, the City had no material claims, which require loss
provisions in the financial statements. Small claims and judgments are recorded
as expenditures when paid.
The City's self-insurance program is administered through the California Joint
Powers Authority (the CJPIA), which is described at Note #8. The CJPIA is a
public entity risk pool, which is accounted for under the provisions of GASB
Statement 10. Claim losses recorded in the CJPIA include both current claims
and "Incurred but Not Reported" (IBNR) claims. The City records amounts
deposited with CJPIA as insurance expenditures in the General Fund when paid.
These deposits are subject to retrospective adjustment. Favorable claims
experience result in a refund of deposits from the CJPIA and such refunds, if any,
are recorded as a reduction of insurance expenditures in the year received.
Adverse claims experience result in the payment of additional deposits and such
deposits, if any, are recorded as insurance expenditures when paid.
L. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items. In governmental funds, the prepaid assets
recorded do not reflect current appropriable resources and thus, an equivalent
portion of fund balance is reserved. The City had a total of $1,138,739
See independent auditors' report.
46
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
($990,242 in governmental funds and $148,497 in internal service funds) of
prepaid items as of June 30, 2008.
M. Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to
make estimates and assumptions that effect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
N. Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the
City's policy to use restricted resources first, and then unrestricted resources as
they are needed.
NOTE #2 — CASH AND INVESTMENTS
Cash and investments as of June 30, 2008, are classified in the accompanying
financial statements as follows:
Government -
Wide
Statement of
Net Assets
Total cash and cash
equivalents $ 46,718,318
Cash and investments as of June 30, 2008 consist of the following:
Petty Cash $ 2,500
Deposits with Financial Institutions 2,245,504
Investments 44,470,314
Total cash and investments $ 46.718.318
See independent auditors' report.
47
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #2 — CASH AND INVESTMENTS (continued)
Investments Authorized by the California Government Code and the City of
Rancho Palos Verdes' Investment Policy
The table below identifies the investment types that are authorized for the City of
Rancho Palos Verdes by the California Government Code (or the City's
investment policy, where more restrictive). The table also identifies certain
provisions of the California Government Code (or the City's investment policy,
where more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk
Maximum
Amount or Maximum
Maximum Percent of in One
Authorized Investment Type Maturity Portfolio Issuer
U.S. Treasury Obligations 3 years None None
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 7 days 15% None
Money Market Mutual Funds N/A 15% 5%
Local Agency Investment Fund (LAIF) N/A None None
Money Market Savings/Demand Deposits N/A $1 million 15%
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely
affect the fair value of an investment. Generally, the longer the maturity of an
investment, there is a greater sensitivity of its fair value to changes in market
interest rates. The City manages its exposure to interest rate risk by purchasing a
combination of U.S. Treasury securities and investing with the Local Agency
Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity
need for operations. The City's investment is represented by shares in the pool,
which can be withdrawn in one business day. The average maturity of the pool is
less than one year.
Remaining
Maturity
(in Months)
12 Months
Investment Type or Less
State Investment
Pool $ 23,992,119
U.S. Treasury
Securities 20,478,195
$ 44,470,314
See independent auditors' report.
48
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #2 — CASH AND INVESTMENTS (continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of
a rating by a nationally recognized statistical rating organization. The City's LAIF
investment is not rated; and U.S. Treasury Securities are exempt from
disclosure.
Concentration of Credit Risk
The investment policy of the City of Rancho Palos Verdes contains no limitations
on the amount that can be invested in any one issuer beyond that stipulated by
the California Government Code. As of June 30, 2008, the City's investments in
LAIF and U.S. Treasury Securities were exempt from concentration of credit risk
disclosure.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its
deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the
risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, a government will not be able to recover the value of its investment
or collateral securities that are in the possession of another party. The California
Government Code and the City of Rancho Palos Verdes' investment policy do
not contain legal or policy requirements that would limit the exposure to custodial
credit risk for deposits or investments, other than the following provision for
deposits: The California Government Code requires that a financial institution
secure deposits made by state or local governmental units by pledging securities
in an undivided collateral pool held by a depository regulated under state law
(unless so waived by the governmental unit). The market value of the pledged
securities in the collateral pool must equal at least 110 percent of the total
amount deposited by the public agencies. California law also allows financial
institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150 percent of the secured public deposits.
The amount of the City of Rancho Palos Verdes' deposits with financial
institutions in excess of federal depository insurance limits that was held in
collateralized accounts where the collateral is not held specifically in the name of
the City, as described above, was $2,053,847 at June 30, 2008.
See independent auditors' report.
49
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #2 — CASH AND INVESTMENTS (continued)
Investment in State Investment Pool
The City of Rancho Palos Verdes is a voluntary participant in LAIF that is
regulated by California Government Code Section 16429 under the oversight of
the Treasurer of the State of California. The fair value of the City of Rancho
Palos Verdes' investment in this pool is reported in the accompanying financial
statements at amounts based upon the City of Rancho Palos Verdes' pro -rata
share of the fair value provided by LAIF for the entire pool portfolio (in relation to
the amortized cost of that portfolio). The balance available for withdrawal is
based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis.
LAIF is a governmental investment pool managed and directed by the Treasurer
of the State of California and is not registered with the Securities and Exchange
Commission. An oversight committee comprised of California State officials and
various other participants provides oversight to the management of the fund. The
daily operations and responsibilities of LAIF fall under the auspices of the State
Treasurer's office. The City is a voluntary participant in the investment pool.
NOTE #3 — INTERFUND TRANSACTIONS
Inter -fund balances consisted of the following at June 30, 2008:
Due to the General Fund from:
Other Governmental Funds:
CDBG Special Revenue Fund $138,082
Measure A Special Revenue Fund 11,932
Total Other Governmental Funds 150,014
Total Due to the General Fund $150.014
General fund monies were used to cover other governmental fund grant
expenditures until reimbursement is received from the grant agency.
Inter -fund Advances
The General Fund has advanced the RDA Debt Service Fund amounts as
described below:
See independent auditors' report.
50
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #3 — INTERFUND TRANSACTIONS (continued)
Balance Balance
July 1, 2007 Additions Deletions June 30, 2008
Advances to the Redevelopment Agency $ 14,887,466 $ 1,122,578 $ 16,010,044
The City has entered into an agreement to provide the RDA operating funds and
staff assistance, supplies, technical and other services and facilities of the City as
the RDA requires in carrying out its function under the community redevelopment
law. The RDA will repay the resulting indebtedness, plus interest, from
incremental property tax revenues arising from the project area, as such revenue
becomes available. As of June 30, 2008, no revenue was available to the RDA to
repay the advances due to the City, nor is sufficient revenue expected to be
available to repay advances in the immediate future. Variable interest was
accrued at a rate of 7.38 percent during the fiscal year ended June 30, 2008. Of
the $16,010,044 advance, $12,438,050 relates to the Portuguese Bend portion of
the RDA, while $3,571,994 relates to the Abalone Cove portion. During the year
ended June 30, 2008, accrued interest of $854,868 was added to the balance of
the advance to the Portuguese Bend Fund, while principal of $22,207 and
accrued interest of $245,503 was advanced to the Abalone Cove Fund. No
interest has ever been paid by the RDA on these advances; therefore, the
interest component of the advance has been recorded as deferred revenue in the
General Fund of the City.
Inter -fund Transfers
Inter -fund transfers for the year ended June 30, 2008, consisted of the following:
Transfer To
Transfer From
Nonmajor
Ge neral Govern mental
Fund Funds Totals
General Fund $ 231,773 $ 231,773
Street Maintenance $ 445,000 284,931 72 9,9 31
Capital Improvement Projects 1,482,71 1 332,527 1,81 5,238
Non major Governmental Fund: 380,740 380,740
Enterprise Fu nd 4,719,193 4,719,193
Internal Service Funds 46,725 46,725
Totals $ 7,074,369 $ 849,231 $ 7,923,600
Transfers are used to: 1) move revenues from the fund that statute or budget
requires for collection to the fund that statute or budget requires for expenditure;
and 2) use unrestricted revenues collected in the General Fund to finance
See independent auditors' report.
51
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #3 — INTERFUND TRANSACTIONS (continued)
various programs accounted for in other funds in accordance with budgetary
authorizations or grant matching requirements.
NOTE #4 — CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital
assets including infrastructure in the Government -Wide Statement of Net Assets.
The City elected to use the basic reporting approach as defined by GASB
Statement No. 34 for all infrastructures, whereby depreciation expense and
accumulated depreciation has been recorded. The following tables present the
capital assets activity for the year ended June 30, 2008.
Beginning Ending
Governmental Activities Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 32,132,781 6,227 32,139,008
Construction in progress 89,256 1,156,991 (1,089,893) 156,354
Total capital assets not being depreciated 32,222,037 1,163,218 (1,089,893) 32,295,362
Capital assets being depreciated:
Buildings and improvements 8,798,564 8,798,564
Vehicles 229,404 96,288 (39,300) 286,392
Computer equipment 572,847 9,600 (7,017) 575,430
Furniture, fixtures and equipment 460,307 83,459 (77,500) 466,266
Infrastructure
Roadway system 79,004,075 2,690,477 81,694,552
Sewer system 25,755,463 25,755,463
Storm drain system 13,148,416 13,148,416
Parks system 6,169,367 6,169,367
Total capital assets being depreciated 134,138,443 2,879,824 (123,817) 136,894,450
Less accumulated depreciation for:
Buildings and improvements (1,443,884) (179,931) (1,623,815)
Vehicles (127,952) (34,330) 39,300 (122,982)
Computer equipment (421,462) (91,416) 7,017 (505,861)
Furniture, fixtures and equipment (349,249) (51,858) 77,500 (323,607)
Infrastructure
Roadway system (32,865,583) (2,146,101) (35,011,684)
Sewer system (15,487,552) (455,109) (15,942,661)
Storm drain system (1,965,559) (250,479) (2,216,038)
Parks system (3,953,251) (114,246) (4,067,497)
Total accumulated depreciation (56,614,492) (3,323,470) 123,817 (59,814,145)
Total capital assets being depreciated, net
Governmental activities capital assets, net
77,523,951 (443,646) - 77,080,305
109,745,988 719,572 (1,089,893) 109,375,667
Depreciation expense was charged to functions/programs of the primary
government as follows:
See independent auditors' report.
52
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #4 — CAPITAL ASSETS AND DEPRECIATION (continued)
Administration $ 179,931
Public Works (including depreciation of general infrastructure
Assets) 2,851,689
Recreation Services 114,246
Capital assets held by the City's internal service funds are charged
to the various functions based on their usage of the assets 177.604
Total Depreciation Expense — Governmental Activities $3.323.470
Beginning
Business -type Actvities Balance
Capital assets not being depreciated:
Land -
Construction in progress 403,119
Total capital assets not being depreciated 403,119
Capital assets being depreciated:
Equipment 11,813
Storm drain system 1,813,423
Total capital assets being depreciated 1,825,236
Less accumulated depreciation for:
Equipment (1,181)
Storm drain system (69,259)
Total accumulated depreciation (70,440)
Total capital assets being depreciated, net
Business -type activities capital assets, net
1,754,796
2,157,915
Depreciation expense of $57,897 is
Protection enterprise fund.
NOTE #5 — LONG-TERM DEBT
RDA Tax Increment Bond
RDA Deferred Interest Payable
Employee Compensated Absences
Totals
Increases
1,408,493
1,853,125
3,261,618
64 3, 21 1
64 3, 21 1
(2,363)
(55,534)
(57,897)
585,314
3,846,932
Ending
Decreases Balance
1,408,493
(405,819) 1,850,425
(405,819) 3,258,918
11,813
2,456, 634
2,468,447
(3,544)
(124,793)
(128,337)
2,340,110
(405,819) 5,599,028
included in the Water Quality Flood
Balance
July 1, 2007 Additions
$ 5,410,000
2,061,329
240,456 210,687
$ 7,711,785 $ 210,687
Balance Amount Due
Deletions June 30, 2008 in 2008
$ (40,000) $ 5,370,000 $ 55,000
(275,793) 1,785,536
(136,433) 314,710 178,564
$ (452,226) $ 7,470,246 $ 233,564
A. RDA Tax Increment Bond and Deferred Interest Payable
In July 1991, the RDA received $10,000,000 in loan proceeds (the Loan) from
the County of Los Angeles (the County) upon the County's issue of Abalone
Cove Improvement Bonds 2651-M pursuant to a Reimbursement and Settlement
Agreement (the Agreement), dated October 27, 1987 in connection with the
See independent auditors' report.
53
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #5 — LONG-TERM DEBT (continued)
Horan Lawsuit. The Loan was made for the purpose of abating the Abalone
Cove landslide. The settlement Loan was secured by property assessment liens
in the Abalone Cove project area.
As stipulated by the parties to the Agreement, a portion of the Loan proceeds
was used to repay a tax allocation and revenue anticipation promissory note
issued to the County in the principal amount of $1,450,000, plus accrued interest
equal to $179,244. A second portion of the proceeds was used to repay
expenses advanced by the County in the amount of $135,614. A third portion
was used to repay certain loans from the City to the RDA in the amount of
$787,340.
Per the terms of the Agreement, $1,000,000 of the proceeds was deposited in
the Abalone Cove Permanent Fund of the Joint Powers Improvement Authority.
The remainder of the proceeds was accounted for in the RDA's Abalone Cove
Fund. Concurrent with the execution of the Agreement, the County deeded its
title in the Abalone Cove Beach Park to the RDA.
As part of the Agreement, the RDA is required to transfer 17 percent of tax
increment revenue to the Consolidated Fire Protection District of the County and
50.9 percent of tax increment revenue for debt repayment to the County. In
accordance with the Agreement, the RDA was to pay the Loan principal plus
interest at 7.7654 percent over a 30 -year period that began in 1992. However,
these debt payments were to be deferred 10 years until the fiscal year ended
June 30, 2002.
As part of the deferral arrangement, the accrued interest from the inception of the
Loan through June 30, 2002, in the amount of $7,314,944, was scheduled for
payment over a 20 -year period beginning in the fiscal year ending June 30, 2002
with no additional interest. The remaining balance of $10,274,119 was scheduled
for payment to the County over a 20 -year period beginning in the fiscal year
ending June 30, 2002, with interest at 7.7654 percent.
On November 1, 1997, the City, the RDA and the County of Los Angeles entered
into a Memorandum of Understanding (MOU) agreeing to restructure the
repayment schedule of the debt owed to the County by the RDA. In accordance
with the terms of the MOU, the $10,000,000 loan principal owed to the County
was cancelled. As consideration for the loan cancellation, the RDA made a lump
sum payment to the County in the amount of $4,545,000 and issued a
$5,455,000 tax increment bond to the County (the RDA bond). Of the $4,545,000
lump sum payment, $2,000,000 was paid from tax increment revenue and
See independent auditors' report.
54
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #5 — LONG-TERM DEBT (continued)
interest earnings accumulated in the Debt Service Fund. The remaining
$2,545,000 was funded by a combination of a loan from the General Fund of the
City to the Agency for $1,545,000 and a net operating transfer from the Agency's
Abalone Cove Capital Projects Fund to the Debt Service Fund of $1,000,000.
The private property liens resulting from the formation of the bond assessment
district in connection with the Reimbursement and Settlement Agreement in 1987
were discharged in accordance with the terms of the MOU.
The RDA bond was issued as a conduit through the Improvement Authority to the
County. No issuance costs were incurred. One hundred percent of net future tax
increment revenue will fund the payment of the RDA bond debt and the deferred
interest from the original Loan until paid in full. In December 1997, the County
began withholding payment of the Agency's net tax increment revenue (net of the
17 percent payment to the County Fire Protection District and the 20 percent
housing set-aside amount) to offset the annual principal and interest charges.
The principal of the RDA bond began maturing in installments each December
2nd, commencing December 2, 2004. Interest accrues at a rate of 5 percent per
annum and is payable in arrears each June 2nd and December 2nd.
Additionally, both the accrued interest and deferred interest on the $10,000,000
Loan previously owed the County was retroactively recalculated from the Loan
origination date at a rate of approximately 5 percent compared to 7.7654 percent
per the original Agreement. The recalculated deferred interest was $3,111,400.
In accordance with the MOU, the recalculated deferred interest does not accrue
additional interest. As of June 30, 2008, a total of $1,325,864 in accumulated tax
increment has been applied against this balance, including $275,793 applied
during fiscal year 2007-08. The remaining balance at June 30, 2008, was
$1,785,536. The accumulated amount of tax increment withheld over the
scheduled principal and interest payment made during the life of the RDA bond is
recorded in the Debt Service Fund as a prepaid item at June 30, 2008.
After payment of the deferred interest, the RDA may elect to further defer
payment to the County of the 50.9 percent of tax increment revenue in order to
extinguish any other indebtedness of the RDA. This deferral would allow the tax
increment to be available for the repayment of loans made to the RDA by the City
(Note #3). In the event the deferral is elected, and the debt owed the City is fully
extinguished and no other RDA indebtedness exists, the RDA will transfer all
subsequent tax increment revenue to the County to fund prior deferrals of, and
current payments of, the 50.9 percent of tax increment revenue required to be
paid per the Settlement Agreement.
See independent auditors' report.
55
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #5 — LONG-TERM DEBT (continued)
The debt service schedule below summarizes all fixed principal and interest
payments for the term of the RDA bond. Because the payback period for the
deferred interest amount will fluctuate depending on the availability of excess tax
increment revenues, no amounts have been included in the following schedule
for repayment of the deferred interest.
Year Ending
June 30, Principal Interest Total
2009 55,000 26 8,125 323,12 5
2010 65,000 26 5,125 330,12 5
2011 85,000 26 0,3 75 345,37 5
2012 1 00,000 25 5,7 50 355,75 0
2013 1 20, 000 25 0,2 50 370,25 0
2014-2018 900,000 1 ,135,500 2,035,500
2019-2023 1,570,000 83 0,7 50 2,400,750
2024-2028 2,4 75,000 33 0,125 2,805,12 5
Totals 5,3 70,000 3,596,000 8,966,000
B. Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences.
Based on historical trends, $178,564 is estimated to be the amount that will be
used and/or paid out during fiscal year 2008-09.
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
In the Government -Wide financial statements net assets are classified in the
following categories:
Invested in Capital Assets
This category groups all capital assets, including infrastructure, into one
component of net assets. Accumulated depreciation on these assets reduces this
category.
Restricted Net Assets
This category presents external restrictions imposed by creditors, grantors,
contributions or laws or regulations of other governments and restrictions
imposed by law through constitutional provisions or enabling legislation.
See independent auditors' report.
56
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
(continued)
Unrestricted Net Assets
This category represents the net assets of the City that are not externally
restricted for any project or other purpose.
In the Fund Financial Statements the City has established "reserves" to
segregate portions of fund balance which are not appropriable for expenditure in
future periods, or which are legally set aside for a specific future use. In addition,
fund balance may be designated to indicate tentative plans for financial resource
utilization of unreserved fund balance in a future period.
The City's governmental funds reserves and designations at June 30, 2008 are
presented below, followed by explanations of the nature and purpose of each
reserve and designation.
Street RDA Debt Capital Other
General Maintenance Service Improvement Governmental
Fund Fund Fund Fund Funds
Reserved:
Reimbursement settlement
agreement $ 1,000,000
Advances to other funds $ 6,175,060
Prepaid items 470,030 $ 461,312 58,900
Land held for development 702,392
Housing set-aside 501,360
Totals Reserved $ 6,645,090 $ $ 461,312 $ - $ 2,262,652
Designated:
Continuing Appropriations:
General fund
Special revenue funds
Capital projects funds
Totals Designated
$ 1,277,915
$ 192,007
$ 1,277,915 $ 192,007 $
A. Reserved for Reimbursement Settlement Agreement
$ 1,704,244
$ 3,192,707 1,154,095
$ 3,192,707 $ 2,858,339
This reserve has been established under the legal requirements of the
Reimbursement Settlement Agreement (see Note #5).
B. Reserved for Advances to Other Funds
This reserve represents the long-term portion of loans from the City's General
Fund to the RDA less $9,834,985 recorded as deferred revenue (see Note #11).
See independent auditors' report.
57
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
(continued)
C. Reserved for Prepaid Items
This reserve is provided to indicate that the asset carrying value is not available
to spend to meet expenditures of the current year.
D. Reserved for Land Held for Development
These funds are reserved for land purchased by the City to be sold or otherwise
used for the development of low and moderate -income housing.
E. Reserved for Housing Set -Aside
These funds are reserved for low and moderate -income housing as restricted by
law or administrative action.
F. Designated for Continuing Appropriations
These designations are maintained for current year budget appropriations that
are formally carried over into the subsequent fiscal year.
NOTE #7 — PENSION PLAN
Plan Description
The City provides a defined benefit pension plan that includes retirement and
disability benefits, annual cost -of -living adjustments, and death benefits to plan
members and beneficiaries. The City participates in the Miscellaneous 2.5% at
55 Risk Pool of the California Public Employee's Retirement System (CaIPERS),
a cost-sharing, multi-employer defined benefit pension plan administered by
CaIPERS. CaIPERS provides retirement and disability benefits, annual cost -of -
living adjustments, and death benefits to plan members and beneficiaries. State
statutes, within the Public Employees' Retirement Law, establish benefit
provisions and other requirements. The City selects optional benefit provisions
from the benefit menu by contract with CaIPERS and adopts those benefits
through local ordinance. Copies of the CaIPERS annual financial report may be
obtained from the CaIPERS Executive Office at 400 P Street, Sacramento,
California 95814.
See independent auditors' report.
58
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #7 — PENSION PLAN (continued)
Funding Policy
The contribution requirements of plan members are established by State statute
and the employer contribution rate is established and amended by CaIPERS.
Active City employees are required to contribute 8% of their annual covered
salary. The City pays 6.5% of the contribution for all the full-time positions, and
1c/0 of the contribution for part-time employees. The City is required to contribute
the actuarially determined remaining amounts necessary to fund the benefits for
its members. The FY07-08 rate was 12.591% of covered payroll. The City's
contributions to CaIPERS for the years ending June 30, 2008, 2007 and 2006
were $747,183, $631,220 and $590,591, respectively, and were equal to the
required contribution for each year.
As a result of having less than 100 active members as of June 30, 2003, the City
was required to participate in a risk pool. The City's pooled employer contribution
rate is the same as the stand-alone employer contribution rate. At the time of
joining the mandatory pooled plan, CaIPERS established an employer side fund
to account for the difference between the funded status of the pooled plan and
the funded status of the City's plan. The amortization of the side fund is included
in the determination of the City's annual required contribution.
The funded status of the pooled plan may be obtained from CaIPERS.
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION
Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority (CJPIA).
The CJPIA is comprised of 119 California public entities and is organized under a
joint powers agreement pursuant to California Government Code section 6500 et
seq. The purpose of the CJPIA is to arrange and administer programs for the
pooling of self-insured losses, to purchase excess insurance or reinsurance, and
to arrange for group -purchased insurance for property and other coverage. The
CJPIA pool began covering claims of its members in 1978. Each member
government has an elected official as its representative on the Board of
Directors. The Board operates through a 9 -member Executive Committee.
See independent auditors' report.
59
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION (continued)
Self -Insurance Programs of the CJPIA
General Liability
Each member government pays a primary deposit to cover estimated losses for a
fiscal year (claims year). After the close of a fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims
year. Costs are spread to members as follows: the first $30,000 of each
occurrence is charged directly to the member's primary deposit; costs from
$30,000 to $750,000 and the loss development reserves associated with losses
up to $750,000 are pooled based on the member's share of losses under
$30,000. Losses from $750,000 to $5,000,000 and the associated loss
development reserves are pooled based on payroll. Costs of covered claims from
$5,000,000 to $50,000,000 are currently paid by excess insurance. Costs of
covered claims for subsidence losses from $15,000,000 to $25,000,000 are paid
by excess insurance. The protection for each member is $50,000,000 per
occurrence and $50,000,000 annual aggregate. Administrative expenses are
paid from CJPIA investment earnings.
Workers' Compensation
The City also participates in the workers' compensation pool administered by
CJPIA. Each member pays a primary deposit to cover estimated losses for a
fiscal year (claims year). After the close of the fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims
year. Each member has a retention level of $50,000 for each loss and this is
charged directly to the member's primary deposit. Losses from $50,000 to
$100,000 and the loss development reserve associated with losses up to
$100,000 are pooled based on the member's share of losses under $50,000.
Losses from $100,000 to $2,000,000 and employer's liability losses from
$5,000,000 to $10,000,000 and the loss development reserves associated with
those losses are pooled based on payroll. Losses from $2,000,000 to
$5,000,000 are pooled with California State Association of Counties — Excess
Insurance Authority members. Costs from $2,000,000 to $300,000,000 are
transferred to reinsurance carriers. Costs in excess of $300,000,000 are pooled
among the Members based on payroll. Protection is provided per statutory
liability under California Workers' Compensation law. Administrative expenses
are paid from CJPIA investment earnings.
See independent auditors' report.
60
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION (continued)
Purchased Insurance
Environmental Insurance
The City participates in the pollution legal liability and remediation legal liability
insurance, which is available through CJPIA. The policy covers sudden and
gradual pollution of scheduled property, streets, and storm drains owned by the
City. Coverage is on a claims -made basis. There is a $50,000 deductible. The
CJPIA has a limit of $50,000,000 for the 3 -year period from July 1, 2005 through
July 1, 2008. Each member of the CJPIA has a $10,000,000 limit during the 3 -
year term of the policy.
Property Insurance
The City participates in the all-risk property protection program of the CJPIA. This
insurance protection is underwritten by several insurance companies. The City's
property is currently insured according to a schedule of covered property
submitted by the City to the CJPIA. The City currently has all-risk property
insurance protection in the amount of $12,469,951. There is a $5,000 deductible
per occurrence except for non -emergency vehicle insurance which has a $1,000
deductible. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property.
The earthquake insurance is part of the property protection insurance program of
the CJPIA. The City's property currently has earthquake protection in the amount
of $12,437,404. There is a deductible of 5% of value with a minimum deductible
of $100,000. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of
certain property to purchase low-cost tenant user liability insurance for certain
activities on City property. The insurance premium is paid by the tenant user and
is paid to the City according to a schedule. The City then pays for the insurance.
See independent auditors' report.
61
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION (continued)
Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of
protection have had settlements or judgments that exceeded pooled or insured
coverage. There have been no significant reductions in pooled or insured liability
coverage in the year ended June 30, 2008.
NOTE #9 — CONTINGENCIES AND COMMITMENTS
Litigation
In the normal course of operations, the City has been named as a defendant in
various claims and legal actions. Generally, unfavorable results of these claims
and legal actions are funded through the City's participation in California Joint
Powers Insurance Authority (CJPIA, see Note #8) and, as such, the City believes
that the ultimate liability for these legal actions and claims will not have a material
adverse effect on the City's financial statements. The City is also a defendant in
legal actions for which the potential losses would not be covered through
participation in CJPIA. The likelihood of an unfavorable outcome or the amount of
potential losses cannot be reasonably estimated by the City for these claims at
this time. In the event of an unfavorable outcome the losses would likely be
material to the City's financial statements.
Storm Drain Failures
During the winter storms of fiscal year 2004-05 emergency repairs were required
to fix sinkholes along the City's border with the City of Los Angeles. The
sinkholes were created as a result of failures in the storm drain system. One
sinkhole was repaired by the City at a cost of approximately $650,000. The City
received reimbursement from the Federal Emergency Management Agency in
the amount of approximately $634,000 which is currently reserved in the
Construction in Progress Fund, related to the repairs; however, it is unclear
whether the final costs will be allowable under FEMA guidelines. If the costs are
not allowed, the funding would have to be returned.
Other sinkholes were repaired by Caltrans at a cost estimated to be as high as
$10 million. It is unclear whether Caltrans will seek reimbursement from the City,
or in what amount, in connection with these repairs.
See independent auditors' report.
62
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #9 — CONTINGENCIES AND COMMITMENTS (continued)
The City is working with FEMA, the Federal Highway Administration (FHWA),
Caltrans, and the City and County of Los Angeles to resolve the issues of
responsibility for repair and funding sources. The repairs of the sinkholes also
brought to light issues with other storm drains in the area. The City's share of
costs for preventative and/or emergency repairs, if required, is unknown.
Excess Surplus
The Redevelopment Agency's Low/Moderate Income Housing Fund has
accumulated excess surplus fund balance as defined by the California Health
and Safety Code. The Agency is required to develop a plan to eliminate the
excess surplus within the time frame allowed by the Health and Safety Code. If
the Agency does not eliminate the excess surplus in the required time frame
significant penalties could be assessed, including transferring such excess
surplus to the County Housing Authority and/or the California Department of
Housing and Community Development.
NOTE #10 — PROPERTY TAXES
Under California law, property taxes are assessed and collected by the counties
up to one percent of assessed value, plus other increases approved by the
voters. The property taxes go into a pool, and are then allocated to the cities
based on complex formulas. Accordingly, the City accrues only those taxes,
which are received from the county within sixty days after year-end.
Lien date
Levy date
Due date
Collection dates
NOTE #11 — DEFERRED REVENUES
January 1
June 30
November 1 and February 1
December 10 and April 10
The deferred revenues in the fund financial statements of the City of Rancho
Palos Verdes as of June 30, 2008 consisted of the following:
See independent auditors' report.
63
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #11 — DEFERRED REVENUES (continued)
General Fund:
Accrued interest from long-term advance to the RDA $ 9,834,985
Advance on federal grant 108,034
Revenue earned but not available 82,206
Cash on deposit for the Del Cerro lighting district 957
Capital Improvements Projects Fund:
Advance on local grant 4,770
Other Governmental Funds:
Long-term notes receivable offset (loans expended when made) 365,181
Total Deferred Revenues $ 10.396.133
NOTE #12 — LAND HELD FOR DEVELOPMENT
On March 21, 2000, the Agency purchased approximately 20 acres of land to be
used for an affordable housing project. The total cost of the land was $702,392.
The Agency has recorded the cost of the land as an asset in the RDA Housing
Set -Aside special revenue fund that purchased the property.
A developer submitted an application for a senior condominium housing project
with an affordable housing component. The project was planned to utilize a
parcel owned by the Agency and a neighboring private parcel. The developer
withdrew the application, and currently the property owner of the neighboring
private parcel is moving forward with a senior condominium project on only that
parcel. In September 2007, the City/Agency made a decision to move forward
with development of only the Agency parcel with a senior affordable housing
project. In September 2008, the Agency entered into an Exclusive Negotiating
Agreement with AMCAL: Multi -Housing Inc. Since that time, AMCAL has been
moving forward with developing plans for a 40 -unit senior affordable rental
housing project. It is expected that the project will be presented to the Planning
Commission in January 2009 and the City Council/Agency Board in February
2009. If the project is approved, a disposition and development agreement
would be entered into with AMCAL. The Agency anticipates transferring the
Agency's land to the developer for construction of the proposed senior affordable
housing project. The Agency will recognize a gain or loss on the disposal of the
land at the time a disposition and development agreement is finalized. The fund
balance in the RDA Housing Set -Aside fund has been reserved for an amount
equal to the purchase price of the land.
See independent auditors' report.
64
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE #13 — OTHER REQUIRED FUND DISCLOSURES
The following funds had deficit fund balances as of June 30, 2008:
Major Fund:
RDA Debt Service Fund
Other Governmental Fund:
CDBG
$15,528,443
The City plans to finance this deficit through future revenues to the funds.
See independent auditors' report.
65
17
66
SUPPLEMENTARY INFORMATION
67
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY DEBT SERVICE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes $ 779,500 $ 779,500 $ 797,901 $ 18,401
Use of money and property - - 81 81
TOTAL REVENUES 779,500 779,500 797,982 18,482
EXPENDITURES:
Current:
Administration 13,400 13,400 16,491 (3,091)
Pass through to other agencies 165,900 165,900 168,784 (2,884)
Debt service:
Principal 344,200 344,200 315,793 28,407
Interest and fiscal charges 1,456,300 1,456,300 1,369,871 86,429
TOTAL EXPENDITURES 1,979,800 1,979,800 1,870,939 108,861
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,200,300) (1,200,300) (1,072,957) 127,343
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR (14,455,486) (14,455,486) (14,455,486)
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
$(15,655,786) $(15,655,786) $(15,528,443) $ 127,343
68
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND
For the year ended June 30, 2008
Budgeted Amounts
Original Final
REVENUES:
Use of money and property $ 33,200
Revenue from other agencies -
TOTAL REVENUES
EXPENDITURES:
Capital outlay
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
33,200
2,309,511
(2,276,311)
2,282,111
NET CHANGE IN FUND BALANCE 5,800
FUND BALANCE - BEGINNING OF YEAR 2,791,946
FUND BALANCE - END OF YEAR $ 2,797,746
See independent auditors' report.
69
Actual
$ 33,200 $ 120,263
1,698,611 1,472,194
1,731,811
3,816,083
(2,084,272)
3,331,558
1,247,286
2,791,946
$ 4,039,232
1,592,457
2,803,675
(1,211,218)
1,815,238
604,020
2,791,946
$ 3,395,966
Variance with
Final Budget
Positive
(Negative)
$ 87,063
(226,417)
(139,354)
1,012,408
873,054
(1,516,320)
(643,266)
$ (643,266)
Dedication Ceremony and Statue memorializing the donation provided by Dr.
Allen & Charlotte Ginsburg (pictured)
70
CITY OF RANCHO PALOS VERDES
JUNE 30, 2008
NONMAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions
Special Revenue Funds are used to account for taxes and other revenues set
aside in accordance with law or administrative regulation for a specific purpose.
Air Quality Management — to account for AB2766 fees received to fund programs
to reduce air pollution from motor vehicles.
Community Development Block Grant (CDBG) — to account for Federal Grants
received from the Department of Housing and Urban Development (HUD).
El Prado — to account for taxes collected to maintain and service existing and
proposed improvements to the common area of the El Prado neighborhood.
Redevelopment Agency Housing Set -Aside — to account for the portion of
Redevelopment tax increment monies which is a requirement under California
Redevelopment Law, Section 33334, to be set-aside for the development of low
and moderate income housing.
Proposition A — to account for the City share of an additional one-half percent
sales tax designated to fund certain public transportation orientated projects.
Proposition C — to account for sales taxes received from the County and used to
support public transit and related services.
Beautification — to account for monies received for the City's recycling program
used for community improvement, grants and promotion of recycling.
Waste Reduction — to account for AB939 fees received for state mandated waste
reduction and recycling plans and programs.
Public Safety Grants — to account for federal grant funds for local law
enforcement supplemental services, AB3229 funds used for additional law
enforcement services and public safety technology equipment.
1972 Act Landscaping and Lighting District (1972 Act) — to account for revenues
and costs associated with the City's landscaping and lighting district.
1911 Act Lighting District (1911 Act) — to account for revenue and costs
associated with a lighting district transferred to the "city -side" landscape and
lighting district from the County in 1995.
71
CITY OF RANCHO PALOS VERDES
JUNE 30, 2008
NONMAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions (continued)
Joint Powers Improvement Authority - Portuguese Bend — to account for
maintenance and repairs of landslide abatement improvements in the
Portuguese Bend Project area.
Habitat Restoration — to account for fees paid by developers for conservation
easements to be used exclusively for habitat restoration efforts on City owned
property.
Subregion One Maintenance — to account for monies used to maintain public
improvements and habitat areas dedicated to the City upon completion of the
Subregion One residential development project also known as Oceanfront
Estates.
Measure A — to account for the voter approved 1992 and 1996 Measure A funds
and other state and county grants used for the acquisition of open space and
park improvements.
Abalone Cove Sewer Assessment District — to account for property assessments
used to partially pay for operation and maintenance of the Abalone Cove sewer
system.
Rancho Palos Verdes TV Channel — to account for donations and General Fund
subsidies used to operate the City's cable television channel.
Dr. Allen and Charlotte Ginsbura Cultural Arts Building (Ginsbura Cultural Art
Bldg) — to account for a private donation to be used for either construction of a
building at the Upper Point Vicente Civic Center to be used for dancing and other
cultural activities, or for the purchase of open space within the City for habitat
conservation and passive recreational purposes.
Recreation Improvement Donations — to account for donations received to
construct or acquire recreational facilities within the City.
Capital Proiects Funds Descriptions
Capital Projects Funds are used to account for financial resources used for the
acquisition or construction of major capital facilities.
Bikeways — to account for state funds that are used for the construction of
bikeways and pedestrian facilities.
72
CITY OF RANCHO PALOS VERDES
JUNE 30, 2008
NONMAJOR GOVERNMENTAL FUNDS
Capital Proiects Funds Descriptions (continued)
Redevelopment Agency - Abalone Cove — to account for monies used for
landslide abatement in the Abalone Cove area of the Redevelopment Agency
Project Area.
Environmental Excise Tax — to account for taxes received in connection with new
construction within the City.
Quimby — to account for developer paid fees or the dedication of land for park
and recreation purposes.
Affordable Housing — to account for developer paid in -lieu fees for the City to
construct low and moderate income housing.
Redevelopment Aaencv - Portuguese Bend — to account for monies used for
landslide abatement in the Portuguese Bend area of the Redevelopment Agency
Project Area.
Utility Underaroundina — to account for the accumulation of monies transferred
from the General fund, to be used for relocating utility poles and lines on arterial
roadways underground, and provide residents assistance with utility
undergrounding in residential areas of the City.
Roadway Beautification — to account for the accumulation of monies transferred
from the General and Recycling funds to be used for landscape improvements
along the City's roadways.
Permanent Fund Description
Permanent Funds are used to account for resources legally restricted to the
extent that only earnings, and not principal, may be used for purposes that
support the City's programs.
Joint Powers Improvement Authority - Abalone Cove — to account for monies
received as part of a July 1991 Reimbursement and Settlement Agreement with
the County of Los Angeles. As a part of this agreement the Authority received a
$1,000,000 deposit of nonexpendable principal. The interest earnings are used
to pay for maintenance and repair of Abalone Cove landslide abatement
improvements.
73
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2008
Air
Quality
Management
Special Revenue Funds
CDBG
Redevelopment
Agency
Housing
El Prado Set -Aside
ASSETS
Cash and cash equivalents $ 38,617 $ - $ 9,488 $ 1,837,300
Receivables:
Taxes - - 91 4,913
Interest 132 - 43 14,011
Notes - 365,181
Other 13,448 143,669
Prepaid items - 8,192 20,000
Land held for development - - 702,392
TOTAL ASSETS
$ 52,197 $ 517,042 $ 9,622 $ 2,578,616
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities $ - $ 13,796 $ 50 $ 17,557
Due to other funds - 138,082
Deferred revenue - 365,181
TOTAL LIABILITIES - 517,059 50 17,557
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement
Prepaid items - 8,192 20,000
Land held for development - - 702,392
Housing set-aside - - 501,360
Unreserved:
Designated for continuing
appropriations:
Special revenue funds - - 1,337,307
Capital projects funds
Undesignated reported in:
Special revenue funds 52,197 (8,209) 9,572
Capital projects funds - -
Permanent funds - TOTAL FUND
BALANCES (DEFICIT) 52,197 (17) 9,572 2,561,059
TOTAL LIABILITIES
AND FUND BALANCES $ 52,197 $ 517,042 $ 9,622 $ 2,578,616
See independent auditors' report.
74
Special Revenue Funds (Continued)
Public
Waste Safety
Proposition A Proposition C Beautification Reduction Grants 1972 Act
$ 223,974 $ 1,966,457 $ 1,272,277 $ 298,107 $ 64,410 $ 42,801
- - - 5,979
663 9,959 6,045 1,643 790 975
- - 51,612 30,282 -
$ 224,637 $ 1,976,416 $ 1,329,934 $ 330,032 $ 65,200 $ 49,755
$ 666 $ 60 $ 2,743 $ 10,482 $ - $ 2,450
666 60 2,743 10,482 - 2,450
- - 212,844 30,216 -
223,971 1,976,356 1,114,347 319,550 34,984 47,305
223,971 1,976,356 1,327,191 319,550 65,200 47,305
$ 224,637 $ 1,976,416 $ 1,329,934 $ 330,032 $ 65,200 $ 49,755
(Continued)
75
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2008
ASSETS
Cash and cash equivalents
Receivables:
Taxes
Interest
Notes
Other
Prepaid items
Land held for development
Special Revenue Funds (Continued)
Joint Powers
Improvement Subregion
Authority Habitat One
1911 Act Portuguese Bend Restoration Maintenance
$ 1,613,697 $ 270,092 $ 244,074 $ 756,656
23,685
7,928
1,768 1,325 3,457
TOTAL ASSETS $ 1,645,310 $ 271,860 $ 245,399 $ 760,113
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities
Due to other funds
Deferred revenue
TOTAL LIABILITIES
$ 53,609 $
53,609
44,215
44,215
$ 12,142 $ 9,353
12,142 9,353
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement - -
Prepaid items - -
Land held for development - -
Housing set-aside - Unreserved:
Designated for continuing
appropriations:
Special revenue funds - - 53,877
Capital projects funds - -
Undesignated reported in:
Special revenue funds 1,591,701 227,645 179,380 750,760
Capital projects funds - -
Permanent funds - -
TOTAL FUND
BALANCES (DEFICIT) 1,591,701 227,645 233,257 750,760
TOTAL LIABILITIES
AND FUND BALANCES $ 1,645,310 $ 271,860 $ 245,399 $ 760,113
See independent auditors' report.
76
Special Revenue Funds (Continued)
Dr. Allen and
Abalone Cove Rancho Charlotte Total
Sewer Palos Ginsburg Recreation Special
Assessment Verdes Cultural Improvement Revenue
Measure A District TV Channel Arts Building Donations Funds
$ 9,384 $ 124,247 $ 41,375 $ 489,811 $ 2,039 $ 9,304,806
- 953 - 35,621
1,889 601 309 2,234 9 53,781
- - - 365,181
10,064 - - 249,075
- - 5,374 - 33,566
- - - 702,392
$ 21,337 $ 125,801 $ 47,058 $ 492,045 $ 2,048 $ 10,744,422
$ - $ 8,088 $ 5,465 $
11,932 -
11,932 8,088 5,465
$
- $ 180,676
- 150,014
- 365,181
- 695,871
- 5,374 - 33,566
- 702,392
- 501,360
70,000 - 1,704,244
9,405 47,713 36,219 492,045 2,048 7,106,989
9,405 117,713 41,593 492,045 2,048 10,048,551
$ 21,337 $ 125,801 $ 47,058 $ 492,045 $ 2,048 $ 10,744,422
(Continued)
77
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2008
Capital Projects Funds
Redevelopment
Agency
Abalone Environmental
Bikeways Cove Excise Tax Quimby
ASSETS
Cash and cash equivalents $ 2,632 $ 6,006 $ 820,488 $ 24,638
Receivables:
Taxes - -
Interest 373 46 3,735 116
Notes - -
Other 2,193 -
Prepaid items - -
Land held for development -
TOTAL ASSETS
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
$ 5,198 $ 6,052 $ 824,223 $ 24,754
accrued liabilities
Due to other funds
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement - -
Prepaid items - -
Land held for development - -
Housing set-aside - Unreserved:
Designated for continuing
appropriations:
Special revenue funds - -
Capital projects funds - - 130,295 25,000
Undesignated reported in:
Special revenue funds - -
Capital projects funds 5,198 6,052 693,928 (246)
Permanent funds - TOTAL FUND
BALANCES (DEFICIT) 5,198 6,052 824,223 24,754
TOTAL LIABILITIES
AND FUND BALANCES $ 5,198 $ 6,052 $ 824,223 $ 24,754
See independent auditors' report.
78
Affordable
Housing
Capital Projects Funds (Continued)
Redevelopment
Agency
Portuguese Utility Roadway
Bend Undergrounding Beautification
$1,139,808 $ 480,229 $
5,423
10,000
3,696
15,334
$1,155,231 $ 499,259 $
10,000
998,800
146,431
1,155,231
15,334
483,925
499,259
Total
Capital
Projects
Funds
Permanent Fund
Joint Powers
Improvement
Authority
Abalone Cove
267,977 $ 99,406 $ 2,841,184 $ 1,363,165
1,264
469
15,122
2,193
25,334
10,939
Total
Other
Governmental
Funds
$ 13, 509,155
35,621
79,842
365,181
251,268
58,900
702,392
269,241 $ 99,875 $ 2,883,833 $ 1,374,104 $ 15,002,359
269,241
269,241
25,334
1,154,095
99,875 1,704,404
99,875
$ 2,823 $ 183,499
150,014
365,181
2,823 698,694
1,000,000
371,281
2,883,833 1,371,281
1,000,000
58,900
702,392
501,360
1,704,244
1,154,095
7,106,989
1,704,404
371,281
14,303,665
$1,155,231 $ 499,259 $ 269,241 $ 99,875 $ 2,883,833 $ 1,374,104 $ 15,002,359
79
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2008
REVENUES:
Taxes
Use of money and property
Revenue from other agencies
Other revenues
TOTAL REVENUES
Air
Quality
Management
Special Revenue Funds
CDBG
Redevelopment
Agency
Housing
El Prado Set -Aside
- $ - $ 1,793 $
1,227 - 342
51,468 244,904
52,695 244,904
199,645
102,410
2,135 302,055
EXPENDITURES:
Current:
Administration - -
Public safety - -
Public works 57,818 - 314
Planning, building and
code enforcement - -
Capital outlay - 216,328
TOTAL EXPENDITURES
EXCESS (DEFICIENTY)
OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
20,676
57,818 216,328 314 20,676
(5,123) 28,576
(28,574)
TOTAL OTHER FINANCING
SOURCES (USES) - (28,574)
NET CHANGE IN
FUND BALANCES
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCES (DEFICIT) -
END OF YEAR
See independent auditors' report.
1,821 281,379
(5,123) 2 1,821 281,379
57,320 (19) 7,751 2,279,680
$ 52,197 $ (17) $ 9,572 $ 2,561,059
80
Special Revenue Funds (Continued)
Public
Waste Safety
Proposition A Proposition C Beautification Reduction Grants 1972 Act
$ - $ - $ - $ $ - $ 255,183
285 81,611 49,720 14,204 7,347 8,786
686,698 572,874 123,314 100,000
- 289,190
686,983 654,485 338,910 137,518 107,347 263,969
15,600
498,351 4,626 174,419 114,976 - 65,789
498,351 4,626 174,419 114,976 15,600 65,789
188,632 649,859 164,491 22,542 91,747 198,180
(17,600) (237,527) (38,000) (100,000) (180,000)
(17,600) (237,527) (38,000) (100,000) (180,000)
171,032 412,332 164,491 (15,458) (8,253) 18,180
52,939 1,564,024 1,162,700 335,008 73,453 29,125
$ 223,971 $ 1,976,356 $ 1,327,191 $ 319,550 $ 65,200 $ 47,305
(Continued)
81
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2008
Special Revenue Funds (Continued)
Joint Powers
Improvement Subregion
Authority Habitat One
1911 Act Portuguese Bend Restoration Maintenance
REVENUES:
Taxes $ 473,633 $ - $ - $
Use of money and property 66,092 15,780 12,627
Revenue from other agencies
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Administration
Public safety
Public works
Planning, building and
code enforcement
Capital outlay
539,725 15,780
375,687 83,331
29,147
12,627 29,147
101,956 62,956
28,967
TOTAL EXPENDITURES 375,687 83,331 130,923 62,956
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 164,038 (67,551) (118,296) (33,809)
OTHER FINANCING SOURCES (USES):
Transfers in - 14,000 115,000 30,000
Transfers out (66,931) -
TOTAL OTHER FINANCING
SOURCES (USES) (66,931) 14,000 115,000 30,000
NET CHANGE IN
FUND BALANCES 97,107 (53,551) (3,296) (3,809)
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR 1,494,594 281,196 236,553 754,569
FUND BALANCES (DEFICIT) -
END OF YEAR $ 1,591,701 $ 227,645 $ 233,257 $ 750,760
See independent auditors' report.
82
Measure A
Special Revenue Funds (Continued)
Dr. Allen and
Abalone Cove Rancho Charlotte Total
Sewer Palos Ginsburg Recreation Special
Assessment Verdes Cultural Improvement Revenue
District TV Channel Arts Building Donations Funds
$ - $ 43,091 $ - $ - $ - $ 973,345
6,873 5,206 3,754 10,651 34 416,096
35,175 - - 1,814,433
- - 500,000 2,014 791,204
42,048 48,297
3,754 510,651
2,048 3,995,078
- 131,526 - 131,526
- - 15,600
65,479 - 1,605,702
- - 20,676
- 18,606 - 263,901
65,479 131,526 18,606 - 2,037,405
42,048 (17,182)
(127,772) 492,045
2,048 1,957,673
- 80,700 135,040 - 374,740
(100,599) - - (769,231)
(100,599) 80,700 135,040 - (394,491)
(58,551) 63,518 7,268 492,045 2,048 1,563,182
67,956 54,195 34,325 - 8,485,369
$ 9,405 $ 117,713 $ 41,593 $ 492,045 $ 2,048 $ 10,048,551
(Continued)
83
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2008
REVENUES:
Taxes
Use of money and property
Revenue from other agencies
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Administration
Public safety
Public works
Planning, building and
code enforcement
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
Capital Projects Funds
Redevelopment
Agency
Abalone Environmental
Bikeways Cove Excise Tax
$ - $ - $
2,770 357 21,296
36,825 -
- - 580,954
39,595 357 602,250
44,704
44,704
Quimby
988
988
39,595 357 557,546 988
OTHER FINANCING SOURCES (USES):
Transfers in - -
Transfers out (80,000) -
TOTAL OTHER FINANCING
SOURCES (USES) (80,000) -
NET CHANGE IN
FUND BALANCES (40,405) 357 557,546 988
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR 45,603 5,695 266,677 23,766
FUND BALANCES (DEFICIT) -
END OF YEAR $ 5,198 $ 6,052 $ 824,223 $ 24,754
See independent auditors' report.
84
Affordable
Housing
Capital Projects Funds (Continued)
Redevelopment
Agency
Portuguese
Bend
Utility Roadway
Undergrounding Beautification
$ $ - $
46,136 27,731
46,136
1,200
1,200
44,936
50,004
77,735
21,858
21,858
55,877
- $
10,744
10,744
10,744
Total
Capital
Projects
Funds
Permanent Fund
Joint Powers
Improvement
Authority
Abalone Cove
- $ - $
3,986 114,008
36,825
- 630,958
3,986 781,791
3,986
44,936 55,877 10,744 3,986
1,110,295 443,382 258,497 95,889
21,858
1,200
44,704
67,762
Total
Other
Governmental
Funds
- $ 973,345
85,905 616,009
1,851,258
1,422,162
85,905
110,431
110,431
714,029 (24,526)
6,000
(80,000) 6,000
634,029 (18,526)
2,249,804 1,389,807
(80,000)
4,862,774
131,526
15,600
1,737,991
21,876
308,605
2,215,598
2,647,176
380,740
(849,231)
(468,491)
2,178,685
12,124,980
$1,155,231 $ 499,259 $ 269,241 $ 99,875 $ 2,883,833 $ 1,371,281 $ 14,303,665
85
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AIR QUALITY MANAGEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2008
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Use of money and property $ 2,900 $ 2,900 $ 1,227 $ (1,673)
Revenue from other agencies 50,000 50,000 51,468 1,468
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
52,900 52,900
58,000 58,000
52,695 (205)
57,818 182
(5,100) (5,100) (5,123)
57,320 57,320 57,320
52,220 $ 52,220 $ 52,197
86
(23)
(23)
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Revenue from other agencies
EXPENDITURES:
Capital outlay
Budgeted Amounts
Original Final
$ 229,827
201,253
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 28,574
OTHER FINANCING USES:
Transfers out (28,574)
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
87
(19)
(19)
Actual
304,304 $ 244,904
275,711 216,328
28,593 28,576
(28,574) (28,574)
19 2
(19) (19)
- $ (17)
Variance with
Final Budget
Positive
(Negative)
$ (59,400)
59,383
(17)
(17)
(17)
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
EL PRADO SPECIAL REVENUE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes $ 1,300 $ 1,300 $ 1,793 $ 493
Use of money and property 300 300 342 42
TOTAL REVENUES 1,600 1,600 2,135 535
EXPENDITURES:
Current:
Public works 900 900 314 586
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 700 700 1,821 1,121
FUND BALANCE - BEGINNING OF YEAR 7,751
FUND BALANCE - END OF YEAR
See independent auditors' report.
88
7,751 7,751
8,451 $ 8,451 $ 9,572 $ 1,121
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY HOUSING SET-ASIDE SPECIAL REVENUE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes $ 194,900 $ 194,900 $ 199,645 $ 4,745
Use of money and property 9,100 9,100 102,410 93,310
TOTAL REVENUES 204,000 204,000 302,055 98,055
EXPENDITURES:
Current:
Planning, building and code enforcement
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
25,000 20,677 20,676 1
179,000 183,323 281,379
2,279,680 2,279,680 2,279,680
$ 2,458,680 $ 2,463,003 $ 2,561,059
89
98,056
98,056
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION A SPECIAL REVENUE FUND
For the year ended June 30, 2008
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Use of money and property $ 400 $ 400 $ 285 $ (115)
Revenue from other agencies 695,600 695,600 686,698 (8,902)
TOTAL REVENUES
696,000 696,000
686,983 (9,017)
EXPENDITURES:
Current:
Public works 506,093 506,093 498,351
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 189,907 189,907 188,632
OTHER FINANCING USES:
Transfers out (17,600) (17,600) (17,600)
NET CHANGE IN FUND BALANCE 172,307 172,307 171,032
FUND BALANCE - BEGINNING OF YEAR 52,939 52,939 52,939
FUND BALANCE - END OF YEAR $ 225,246 $ 225,246 $ 223,971
See independent auditors' report.
90
7,742
(1,275)
(1,275)
(1,275)
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION C SPECIAL REVENUE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 26,000 $ 71,000 $ 81,611 $ 10,611
Revenue from other agencies 579,700 579,700 572,874 (6,826)
TOTAL REVENUES 605,700 650,700 654,485 3,785
EXPENDITURES:
Current:
Public works 5,290 5,290 4,626 664
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 600,410 645,410 649,859 4,449
OTHER FINANCING USES:
Transfers out (625,000) (997,743) (237,527) 760,216
NET CHANGE IN FUND BALANCE (24,590) (352,333) 412,332 764,665
FUND BALANCE - BEGINNING OF YEAR 1,564,024 1,564,024 1,564,024
FUND BALANCE - END OF YEAR $ 1,539,434 $ 1,211,691 $ 1,976,356 $ 764,665
See independent auditors' report.
91
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
BEAUTIFICATION SPECIAL REVENUE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 34,200 $ 34,200 $ 49,720 $ 15,520
Other revenues 240,000 240,000 289,190 49,190
TOTAL REVENUES 274,200 274,200 338,910 64,710
EXPENDITURES:
Current:
Public works 257,370 178,621 174,419 4,202
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 16,830 95,579 164,491 68,912
OTHER FINANCING USES:
Transfers out (155,000) - -
NET CHANGE IN FUND BALANCE (138,170) 95,579 164,491
FUND BALANCE - BEGINNING OF YEAR 1,162,700 1,162,700 1,162,700
FUND BALANCE - END OF YEAR $ 1,024,530 $ 1,258,279 $ 1,327,191
See independent auditors' report.
92
68,912
68,912
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
WASTE REDUCTION SPECIAL REVENUE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 11,000 $ 11,000 $ 14,204 $ 3,204
Revenue from other agencies 90,000 90,000 123,314 33,314
TOTAL REVENUES 101,000 101,000 137,518 36,518
EXPENDITURES:
Current:
Public works 169,570 169,570 114,976 54,594
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (68,570) (68,570) 22,542 91,112
OTHER FINANCING USES:
Transfers out (45,000) (45,000) (38,000) 7,000
NET CHANGE IN FUND BALANCE (113,570) (113,570) (15,458) 98,112
FUND BALANCE - BEGINNING OF YEAR 335,008 335,008 335,008
FUND BALANCE - END OF YEAR $ 221,438 $ 221,438 $ 319,550 $ 98,112
See independent auditors' report.
93
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC SAFETY GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 1,200 $ 1,200 $ 7,347 $ 6,147
Revenue from other agencies 100,000 100,000 100,000
TOTAL REVENUES 101,200 101,200 107,347 6,147
EXPENDITURES:
Current:
Public safety - 15,600 15,600
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
101,200 85,600 91,747 6,147
OTHER FINANCING USES:
Transfers out (100,000) (100,000) (100,000)
NET CHANGE IN FUND BALANCE 1,200 (14,400) (8,253)
FUND BALANCE - BEGINNING OF YEAR 73,453 73,453 73,453
FUND BALANCE - END OF YEAR $ 74,653 $ 59,053 $ 65,200
See independent auditors' report.
94
6,147
6,147
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
1972 ACT SPECIAL REVENUE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes $ 248,230 $ 248,230 $ 255,183 $ 6,953
Use of money and property 900 900 8,786 7,886
TOTAL REVENUES 249,130 249,130 263,969 14,839
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
66,200 66,200
65,789 411
182,930 182,930 198,180 15,250
OTHER FINANCING USES:
Transfers out (180,000) (180,000) (180,000)
NET CHANGE IN FUND BALANCE 2,930 2,930 18,180
FUND BALANCE - BEGINNING OF YEAR 29,125 29,125 29,125
FUND BALANCE - END OF YEAR $ 32,055 $ 32,055 $ 47,305
See independent auditors' report.
95
15,250
15,250
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
1911 ACT SPECIAL REVENUE FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes $ 375,000 $ 375,000 $ 473,633 $ 98,633
Use of money and property 68,500 68,500 66,092 (2,408)
TOTAL REVENUES 443,500 443,500 539,725 96,225
EXPENDITURES:
Current:
Public works 465,500 465,500 375,687 89,813
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(22,000) (22,000)
164,038 186,038
OTHER FINANCING USES:
Transfers out (74,500) (74,500) (66,931) 7,569
NET CHANGE IN FUND BALANCE (96,500) (96,500) 97,107 193,607
FUND BALANCE - BEGINNING OF YEAR 1,494,594 1,494,594 1,494,594
FUND BALANCE - END OF YEAR $ 1,398,094 $ 1,398,094 $ 1,591,701 $ 193,607
See independent auditors' report.
96
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUSE BEND SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 10,400 $ 10,400 $ 15,780 $ 5,380
EXPENDITURES:
Current:
Public works 131,200 150,200 83,331 66,869
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (120,800) (139,800) (67,551) 72,249
OTHER FINANCING SOURCES:
Transfers in - 14,000 14,000
NET CHANGE IN FUND BALANCE (120,800) (125,800) (53,551) 72,249
FUND BALANCE - BEGINNING OF YEAR 281,196 281,196 281,196
FUND BALANCE - END OF YEAR $ 160,396 $ 155,396 $ 227,645 $ 72,249
See independent auditors' report.
97
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HABITAT RESTORATION SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
EXPENDITURES:
Current:
Public works
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final Actual
$ 8,000 $ 8,000 $ 12,627
119,800 101,956 101,956
15,000 28,967 28,967
134,800 130,923 130,923
(126,800) (122,923) (118,296)
115,000 115,000 115,000
(11,800) (7,923) (3,296)
236,553 236,553 236,553
224,753 $ 228,630 $ 233,257
98
Variance with
Final Budget
Positive
(Negative)
$ 4,627
4,627
4,627
4,627
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SUBREGION ONE MAINTENANCE SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
$ 37,500 $ 37,500 $ 29,147 $ (8,353)
EXPENDITURES:
Current:
Public works 64,400 64,400 62,956 1,444
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (26,900) (26,900) (33,809) (6,909)
OTHER FINANCING SOURCES:
Transfers in 30,000 30,000 30,000
NET CHANGE IN FUND BALANCE 3,100 3,100 (3,809) (6,909)
FUND BALANCE - BEGINNING OF YEAR 754,569 754,569 754,569
FUND BALANCE - END OF YEAR $ 757,669 $ 757,669 $ 750,760 $ (6,909)
See independent auditors' report.
99
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE A SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
Revenue from other agencies
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted
Original
$ 3,800
65,000
68,800
(103,600)
(34,800)
67,956
33,156
100
Amounts
Final
3,800
65,000
68,800
(103,600)
(34,800)
67,956
33,156
Actual
$ 6,873
35,175
Variance with
Final Budget
Positive
(Negative)
$ 3,073
(29,825)
42,048 (26,752)
(100, 599)
(58,551)
67,956
9,405
3,001
(23,751)
(23,751)
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ABALONE COVE SEWER ASSESSMENT DISTRICT SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Taxes
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted
Original
$ 42,000
1,200
43,200
133,200
(90,000)
80,700
(9,300)
54,195
44,895
101
Amounts
Final
42,000
1,200
43,200
Actual
$ 43,091
5,206
48,297
89,800 65,479
(46,600) (17,182)
80,700 80,700
34,100 63,518
54,195 54,195
88,295 $ 117,713
Variance with
Final Budget
Positive
(Negative)
$ 1,091
4,006
5,097
24,321
29,418
29,418
29,418
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RANCHO PALOS VERDES TV CHANNEL SPECIAL REVENUE FUND
For the year ended June 30, 2008
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Use of money and property $ 20 $ 20 $ 3,754 $ 3,734
Other revenues 9,500 9,500 - (9,500)
TOTAL REVENUES 9,520 9,520 3,754 (5,766)
EXPENDITURES:
Current:
Administration 144,540 173,082 131,526 41,556
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (135,020) (163,562) (127,772) 35,790
OTHER FINANCING SOURCES:
Transfers in 135,040 135,040 135,040
NET CHANGE IN FUND BALANCE 20 (28,522) 7,268
FUND BALANCE - BEGINNING OF YEAR 34,325 34,325 34,325
FUND BALANCE - END OF YEAR $ 34,345 $ 5,803 $ 41,593
See independent auditors' report.
102
35,790
35,790
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DR. ALLEN AND CHARLOTTE GINSBURG CULTURAL ARTS BUILDING SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Capital outlay
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
$
Budgeted Amounts
Original Final
103
Actual
Variance with
Final Budget
Positive
(Negative)
12,000 $ 10,651 $ (1,349)
500,000 500,000
512,000 510,651 (1,349)
25,000 18,606 6,394
487,000 492,045 5,045
487,000 $ 492,045 $ 5,045
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RECREATION IMPROVEMENTS DONATIONS SPECIAL REVENUE FUND
For the year ended June 30, 2008
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Use of money and property $ - $ - $ 34 $ 34
Other revenues - - 2,014 2,014
TOTAL REVENUES - - 2,048 2,048
FUND BALANCE - BEGINNING OF YEAR - - -
FUND BALANCE - END OF YEAR $ - $ - $ 2,048 $ 2,048
See independent auditors' report.
104
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
BIKEWAYS CAPITAL PROJECTS FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
Revenue from other agencies
TOTAL REVENUES
$
Budgeted Amounts
Original Final
25,000
Actual
Variance with
Final Budget
Positive
(Negative)
- $ 2,770 $ 2,770
35,501 36,825 1,324
25,000 35,501
39,595 4,094
OTHER FINANCING USES:
Transfers out (25,000) (81,104) (80,000)
NET CHANGE IN FUND BALANCE - (45,603) (40,405)
FUND BALANCE - BEGINNING OF YEAR 45,603 45,603 45,603
FUND BALANCE - END OF YEAR $ 45,603 $ - $ 5,198
See independent auditors' report.
105
1,104
5,198
5,198
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY ABALONE COVE CAPITAL PROJECTS FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 300 $ 300 $ 357 $ 57
5,695 5,695 5,695
5,995 $ 5,995 $ 6,052 $ 57
106
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX CAPITAL PROJECTS FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 16,500 $ 16,500 $ 21,296 $ 4,796
Other revenues 240,640 696,006 580,954 (115,052)
TOTAL REVENUES
EXPENDITURES:
Capital outlay
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
257,140 712,506 602,250 (110,256)
175,000 44,705 44,704 1
82,140 667,801 557,546 (110,255)
OTHER FINANCING USES:
Transfers out (20,000) - -
NET CHANGE IN FUND BALANCE 62,140 667,801 557,546 (110,255)
FUND BALANCE - BEGINNING OF YEAR 266,677 266,677 266,677
FUND BALANCE - END OF YEAR $ 328,817 $ 934,478 $ 824,223 $ (110,255)
See independent auditors' report.
107
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
QUIMBY CAPITAL PROJECTS FUND
For the year ended June 30, 2008
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Use of money and property $ 1,600 $ 1,600 $ 988 $ (612)
Other 12,000 12,000 - (12,000)
TOTAL REVENUES 13,600 13,600 988 (12,612)
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
25,000
(11,400) 13,600 988 (12,612)
23,766 23,766 23,766
12,366 $ 37,366 $ 24,754 $ (12,612)
108
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AFFORDABLE HOUSING CAPITAL PROJECTS FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
EXPENDITURES:
Current:
Planning, building and code enforcement
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 6,900 $ 6,900 $ 46,136 $ 39,236
1,200 1,200
6,900 5,700 44,936
1,110,295 1,110,295 1,110,295
$ 1,117,195 $ 1,115,995 $ 1,155,231
109
39,236
39,236
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY PORTUGUESE BEND CAPITAL PROJECTS FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 18,700 $ 18,700 $ 27,731 $ 9,031
Other revenues - - 50,004 50,004
TOTAL REVENUES 18,700 18,700 77,735 59,035
EXPENDITURES:
Current:
Public works 26,000 26,000 21,858 4,142
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (7,300) (7,300) 55,877 63,177
FUND BALANCE - BEGINNING OF YEAR 443,382 443,382 443,382
FUND BALANCE - END OF YEAR $ 436,082 $ 436,082 $ 499,259 $ 63,177
See independent auditors' report.
110
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
UTILITY UNDERGROUNDING CAPITAL PROJECTS FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 12,900 $ 12,900 $ 10,744 $ (2,156)
258,497 258,497 258,497
271,397 $ 271,397 $ 269,241 $ (2,156)
111
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ROADWAY BEAUTIFICATION CAPITAL PROJECTS FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 4,600 $ 4,600 $ 3,986 $ (614)
95,889 95,889 95,889
100,489 $ 100,489 $ 99,875 $ (614)
112
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY ABALONE COVE PERMANENT FUND
For the year ended June 30, 2008
REVENUES:
Use of money and property
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 63,100 $ 63,100 $ 85,905 $ 22,805
EXPENDITURES:
Current:
Public works 116,021 187,021 110,431 76,590
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (52,921) (123,921) (24,526) 99,395
OTHER FINANCING SOURCES:
Transfers in - 6,000 6,000
NET CHANGE IN FUND BALANCE (52,921) (117,921) (18,526) 99,395
FUND BALANCE - BEGINNING OF YEAR 1,389,807 1,389,807 1,389,807
FUND BALANCE - END OF YEAR $ 1,336,886 $ 1,271,886 $ 1,371,281 $ 99,395
See independent auditors' report.
113
114
CITY OF RANCHO PALOS VERDES
JUNE 30, 2008
INTERNAL SERVICE FUNDS DESCRIPTIONS
The Internal Service Funds are used to finance and account for goods and
services provided by one City department to other City departments on a cost -
reimbursement basis, including depreciation.
Equipment Replacement — to account for purchases, replacement and
maintenance of certain equipment items on behalf of all City departments.
Building Replacement — to account for the accumulation of funds transferred from
the General Fund for replacement of certain buildings on behalf of the City.
Employee Benefits — to account for employee benefit costs for all employees
charged to various City departments.
115
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
June 30, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Receivables:
Interest
Prepaid items
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
Capital assets:
Property and equipment
Accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities
Equipment Building Employee
Replacement Replacement Benefits Totals
$ 3,033,890 $ 1,504,671 $ 747,840 $ 5,286,401
14,260 7,147 3,415 24,822
- 148,497 148,497
3,048,150 1,511,818 899,752 5,459,720
1,328,094
(952,456)
375,638
- - 1,328,094
- - (952,456)
- - 375,638
3,423,788 1,511,818 899,752 5,835,358
24,533 4,088 508 29,129
NET ASSETS
Invested in capital assets 375,638 - - 375,638
Unrestricted 3,023,617 1,507,730 899,244 5,430,591
TOTAL NET ASSETS $ 3,399,255 $ 1,507,730 $ 899,244 $ 5,806,229
See independent auditors' report.
116
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS - INTERNAL SERVICE FUNDS
For the year ended June 30, 2008
OPERATING REVENUES:
Charges for services
OPERATING EXPENSES:
Personnel services
Materials and supplies
Maintenance
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUES:
Investment income
INCOME BEFORE TRANSFERS
TRANSFERS IN
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING OF YEAR
TOTAL NET ASSETS - END OF YEAR
See independent auditors' report.
Equipment
Replacement
$ 268,100
136,300
47,493
177,604
361,397
(93,297)
122,218
28,921
28,921
Building Employee
Replacement Benefits Totals
$ - $ 1,630,930 $ 1,899,030
- 1,433,990 1,433,990
- - 136,300
52,300 - 99,793
- - 177,604
52,300 1,433,990 1,847,687
(52,300) 196,940 51,343
61,395 19,612 203,225
9,095 216,552 254,568
46,725 - 46,725
55,820 216,552 301,293
3,370,334 1,451,910
682,692 5,504,936
$ 3,399,255 $ 1,507,730 $ 899,244 $ 5,806,229
117
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services provided
Payments to suppliers
Payments to employees
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Equipment Building Employee
Replacement Replacement Benefits
$ 268,100 $
(191,210)
Totals
- $ 1,630,930 $ 1,899,030
(255,797) - (447,007)
- (1,586,256) (1,586,256)
76,890 (255,797)
44,674 (134,233)
(189,347) - - (189,347)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 46,725 - 46,725
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 134,545 68,552 21,608 224,705
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 22,088 (140,520) 66,282 (52,150)
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 3,011,802 1,645,191 681,558 5,338,551
CASH AND CASH EQUIVALENTS -
END OF YEAR $ 3,033,890 $ 1,504,671 $ 747,840 $ 5,286,401
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss) $ (93,297) $ (52,300) $ 196,940 $ 51,343
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation 177,604 - - 177,604
Changes in operating assets and liabilities:
(Increase) decrease in prepaid items - (25,363) (25,363)
Increase (decrease) in accrued liabilities (7,417) (203,497) (126,903) (337,817)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES $ 76,890 $ (255,797) $ 44,674 $ (134,233)
See independent auditors' report.
118
STATISTICAL SECTION
This part of the City of Rancho Palos Verdes' comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the city's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of
the City's current levels of outstanding debt and the city's ability to issue additional
debt in the future. The City does not have general bond indebtedness or debt
issued with pledged revenue.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place.
Operating Information
These schedules contain services and infrastructure data to help the reader
understand how the information in the City's financial report relates to the services
the City provides and the activities it performs.
120
127
131
134
136
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
119
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets, net of related
Restricted
Unrestricted
Total primary government net assets
The information in this table is not available
debt
City of Rancho Palos Verdes
Net Assets by Component
Last Seven Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2002 2003
Fiscal Year
2004 2005
$ 93,636 $ 94,895 $ 92,499 $ 94,023
10,327 10,661 11,586 12,075
13,666 13,004 14,271 15,659
$117,629 $118,560 $118,356 $121,757
$ 93,636
10,327
13,666
$ 117,629
$ 2,000
$ 2,000
$ 94,895 $ 92,499 $ 94,023
10,661 11,586 12,075
13,004 14,271 17,659
$118,560 $118,356 $123,757
2006
$ 109,991
12,417
16,024
$ 138,432
2007
$ 109,746
12,163
17,823
$ 139,732
2008
$ 109,376
1,000
30,471
$ 140,847
$ 1,311 $ 2,158 $ 5,599
2,799
$ 4,110
$ 111,302
12,417
18,823
$ 142,542
5,258
$ 7,416
$ 111,904
12,163
23,081
$ 147,148
prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
120
7,740
$ 13,339
$ 114,975
1,000
38,211
$ 154,186
City of Rancho Palos Verdes
Changes in Net Assets
Last Seven Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008
Expenses
Governmental activities:
Administration $ 3,069 $ 3,294 $ 3,499 $ 4,055 $ 4,350 $ 4,953 $ 4,724
Public safety 2,898 3,094 3,024 3,079 3,437 3,751 4,044
Public works 7,283 7,954 7,462 9,488 9,290 9,969 9,026
Parks and recreation 687 809 948 1,065 1,659 1,439 1,396
Planning, building and code enforcement 1,916 2,170 2,296 2,223 2,060 2,631 2,441
Interest on long-term debt 273 273 273 272 270 271 270
Total governmental activities expenses 16,126 17,594 17,502 20,182 21,066 23,014 21,901
Business -type activities:
Water Quality Flood Protection 47 271 301
Total primary government expenses $16,126 $ 17,594 $ 17,502 $ 20,182 $21,113 $ 23,285 $ 22,202
Program Revenues
Governmental activities:
Charges for services:
Administration $ 157 $ 87 $ 69 $ 62 $ 35 $ 29 $ 538
Public safety 433 235 165 163 224 332 316
Public works 78 252 217 131 37 185 1,002
Parks and recreation 10 8 6 41 45 51 483
Planning, building and code enforcement 979 1,202 1,363 1,188 1,319 1,599 1,760
Operating grants and contributions 6,877 2,971 2,836 2,728 3,894 4,200 3,570
Capital grants and contributions 706 131 37 4,524 17,299 317 1,472
Total governmental activities program revenues 9,240 4,886 4,693 8,837 22,853 6,713 9,141
Business -type activities:
Charges for services:
Water Quality Flood Protection
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues - - - - -
Total primary government program revenues $ 9,240 $ 4,886 $ 4,693 $ 8,837 $22,853 $ 6,713 $ 9,141
Net (expense)/revenue
Governmental activities $ (6,886) $(12,708) $(12,809) $(11,345) $ 1,787 $(16,301) $(12,760)
Business -type activities - - - (47) (270) (301)
Total primary government net expense $ (6,886) $(12,708) $(12,809) $(11,345) $ 1,740 $(16,571) $(13,061)
121
City of Rancho Palos Verdes
Changes in Net Assets
Last Seven Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes $ 5,253 $ 5,335 $ 5,706 $ 5,840 $ 9,621 $ 10,235 $ 10,935
Franchise taxes 1,139 1,087 1,275 1,307 1,454 1,512 1,599
Sales taxes 1,093 1,003 1,205 1,276 1,214 1,381 1,056
Utility user taxes 1,812 1,832 1,851 1,901 2,191 2,271 2,329
Other taxes 2,744 3,495 2,867 4,545 727 363 820
Investment income 814 371 331 594 997 1,615 1,555
Other (67) 517 2,481 1,283 793 2,101 300
Transfers (2,000) (2,109) (2,017) (4,719)
Total governmental activities 12,788 13,640 15,716 14,746 14,888 17,461 13,875
Business -type activities:
Investment income 48 51 283
User Fees - 1,188 1,222
Other - 320
Transfers 2,000 2,109 2,017 4,719
Total business -type activities - - 2,000 2,157 3,576 6,224
Total primary government $12,788 $ 13,640 $ 15,716 $ 16,746 $17,045 $ 21,037 $ 20,099
Change in Net Assets
Governmental activities
Business -type activities
Total primary government net expense
$ 5,902 $ 932 $ 2,907 $ 3,401 $16,675 $ 1,160 $ 1,115
- - 2,000 2,110 3,306 5,923
$ 5,902 $ 932 $ 2,907 $ 5,401 $ 18,785 $ 4,466 $ 7,038
The information in this table is not available prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
122
City of Rancho Palos Verdes
Governmental Activities Tax Revenues By Source
Last Seven Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Utility
Fiscal Property Franchise Sales Users Other
Year Tax Tax Tax Tax Taxes Total
2002 $ 5,253 $ 1,139 $ 1,093 $ 1,812 $2,744 $ 12,041
2003 5,335 1,087 1,003 1,832 3,495 12,752
2004 5,706 1,275 1,205 1,851 2,867 12,904
2005 5,840 1,307 1,276 1,901 4,545 14,869
2006 9,621 1 1,454 1,214 2,191 727 ' 15,207
2007 10,235 1,512 1,381 2,271 363 15,762
2008 10,935 1,599 1,056 2,329 820 16,739
1: Most of the Motor Vehicle In Lieu Tax is received as Property Tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2002, as the City did
not implement GASB 34 until Fiscal Year 2002.
123
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
General Fund
Reserved $ 6,050 $ 6,367 $ 6,317 $ 6,571 $ 6,854 $ 6,639 $ 6,021 $ 6,165 $ 6,586 $ 6,645
Designated 675 876 786 1,278
Unreserved, Undesignated 5,701 6,791 7,043 7,234 9,607 14,066 14,209 13,649 14,376 12,171
Total General Fund $11,751 $13,158 $13,360 $13,805 $16,461 $ 20,705 $ 20,905 $ 20,690 $ 21,748 $ 20,094
All other Governmental Funds
Reserved $ 2,019 $ 3,922 $ 3,406 $11,256 $ 7,584 $ 7,229 $ 3,147 $ 3,315 $ 2,396 $ 2,724
Designated
Special Revenue Funds 615 744 1,849 1,896
Capital Projects Funds 12,175 12,163 10,472 2,416 2,799 3,158 4,347
Permanent Fund 75 65
Debt Service Fund
Unreserved, Undesignated, reported in:
Special Revenue Funds 4,768 4,283 4,697 4,753 5,012 5,040 5,902 6,615 6,426 7,494
Capital Projects Funds 332 1 534 2,430 3,320 2,077 1,869 1,908
Permanent Fund 443 2 460 418 426 329 325 371
Debt Service Fund (10,477) 3 (10,915) (12,070) (12,793) (13,741) (14,873) (15,990)
Total all other Governmental Funds $ 18,962 $ 20,368 $ 18,575 $ 6,307 $ 2,675 $ 3,047 $ 3,033 $ 2,213 $ 1,215 $ 2,750
1: Prior to 2002, all Capital Projects Fund Balances were designated for future projects.
2: Prior to 2002, the Permanent Fund was reported as a Fiduciary fund.
3: Prior to 2002, the balance of long-term debt was recorded in an account group instead of the Debt Service Fund.
124
City of Rancho Palos Verdes
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual basis of Accounting)
(Amounts expressed in thousands)
Fiscal Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Revenues
Taxes $ 9,002 $ 9,530 $ 10,309 $ 10,677 $ 11,046 $ 12,081 $ 13,573 $ 15,238 $ 16,453 $17,062
Licenses and permits 1,292 1,090 1,164 1,245 1,463 1,310 1,326 1,440 1,763 1,914
Fines and forfeitures 140 157 139 117 115 102 108 171 237 260
Use of money and property 1,555 1,704 1,971 1,153 804 733 1,306 7,038 3,480 2,108
Charges for services 218 203 197 217 205 379 152 49 61 60
Revenues from other agencies 4,341 3,655 4,816 8,170 4,318 3,453 7,848 15,511 4,118 4,647
Other Revenues 687 2,137 882 563 554 2,363 1,038 155 201 1,563
Total Revenues 17,235 18,476 19,478 22,142 18,505 20,421 25,351 39,602 26,313 27,614
Expenditures
Administration 1,689 1,846 3,052 2,915 3,092 3,328 3,852 4,041 4,607 4,411
Public Safety 2,658 2,662 2,733 2,898 3,094 3,039 3,092 3,438 3,751 4,044
Public Works 4,156 5,552 4,972 7,449 5,292 4,801 6,302 5,277 6,864 5,768
Parks and Recreation 633 597 596 669 786 946 965 1,593 1,319 1,281
Planning, Building and Code Enforcement 1,882 1,647 1,778 1,950 2,194 2,362 2,302 2,361 2,681 2,496
Pass Through to other agencies 78 85 91 102 137 156 188 200 152 169
Capital Outlay 3,504 2,157 7,015 8,246 3,893 368 4,912 20,202 3,124 3,112
Debt Service
Principal 184 200 248 316
Interest 893 985 1,128 930 836 805 905 1,150 1,390 1,370
Total Expenditures 15,493 15,531 21,365 25,159 19,324 15,805 22,702 38,462 24,136 22,967
Excess of Revenues over (under) Expenditures 1,742 2,945 (1,887) (3,017) (819) 4,616 2,649 1,140 2,177 4,647
Other Financing Sources (uses)
Transfers in 2,593 3,687 5,013 4,294 1,676 1,844 6,180 4,989 4,489 3,158
Transfers out (2,593) (4,469) (5,165) (4,877) (1,833) (1,844) (8,180) (7,247) (6,606) (7,924)
Bond Proceeds
Advances to the Redevelopment Agency 1,301 982 855
Total Other Financing Sources (uses) 1,301 200 703 (583) (157) (2,000) (2,258) (2,117) (4,766)
Net change in Fund Balances $ 3,043 $ 3,145 $ (1,184) $ (3,600) $ (976) $ 4,616 $ 649 $ (1,118) $ 60 $ (119)
Cost of Assets Capitalized
Debt Services as a percentage of Non -Capital Expenditures
11,047 4,184 379 4,623 19,465 2,800 2,764
6.6% 5.5% 5.2% 6.0% 7.1% 7.7% 8.3%
1: The cost of assets capitalized from Governmental Fund expenditures is not available prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
125
City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Nine Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts expressed in thousands)
Utility
Fiscal Property Franchise Sales Users Other
Year Tax Tax Tax Tax Taxes Total
2000 $ 4,357 $ 972 $ 1,024 $ 1,550 $ 1,627 $ 9,530
2001 4,629 1,087 1,101 1,764 1,728 10,309
2002 4,972 1,139 1,093 1,812 1,661 10,677
2003 5,335 1,087 1,003 1,832 1,789 11,046
2004 5,706 1,275 1,205 1,851 2,044 12,081
2005 8,494 ' 1,307 1,009 1,901 862 13,573
2006 9,576 1,299 995 2,191 1,177 15,238
2007 10,385 1,511 1,020 2,272 1,265 16,453
2008 10,898 1,599 1,077 2,329 1,159 17,062
Source: City General Ledger
1: Most of the Motor Vehicle In Lieu Fees are received as property tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2000, as the City has
not retained detailed general ledger information sufficient to provide tax revenue by type
prior to Fiscal Year 2000.
126
Fiscal
Year Residential
End Property
2005 * $ 6,530,448
2006 * 7,034,406
2007 7,548,956
2008 8,080,905
City of Rancho Palos Verdes
Assessed Value and Estimated Actual Value of Taxable Property
Last Four Fiscal Years
(In thousands of dollars)
Commercial Industrial
Property Property
$ 76,445 $ 1,691
88,691 3,086
111,338 3,148
170,825 3,211
Other
Property
$ 317,463
365,175
513,876
370,134
Less
Unsecured Tax -Exempt
Property Property
$ 22,222 $ 218,193
21,561 218,916
20,378 226,598
26,546 152,181
Taxable
Assessed
Value
$ 6,730,076
7,294,003
7,971,098
8,499,440
Total Estimated
Direct Actual
Tax Taxable
Rate Value (1)
$ 0.064 $ 8,956,722
0.064 $ 9,707,224
0.064 $ 10,608,336
0.064 $ 11,311,480
Factor of
Taxable
Assessed Value (2)
1.33085
1.33085
1.33085
1.33085
Source: County Assessor Data and HdL Coren & Cone
2007-08 County Auditor/Controller Data, HdL Coren & Cone
*Prior Year assessed values have been revised from prior CAFR publications to comply with GASB No. 44 standards and on-going consistency in reporting methodologies.
(1) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.
Based on these calculations a factor was extrapolated and applied to current assessed values.
(2) The Factor used to calculate Estimated Actual Value was applied to prior years for historical purposes.
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and is therefore unavailable.
127
Fiscal General
Year Levy
2005 $ 1.00000
2006 1.00000
2007 1.00000
2008 1.00000
Los Angeles
County
$ 0.00092
0.00080
0.00066
City of Rancho Palos Verdes
Property Tax Rates
Direct and Overlapping Governments
Last Four Fiscal Years
Flood
Control
District
$ 0.00025
0.00005
0.00005
Metropolitan
Water
District
$ 0.00580
0.00520
0.00470
0.00900
Library
District
$ 0.00852
0.00781
0.00731
0.00685
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls
Note: Tax rates are per $100 of assessed value.
Community
College
District
$ 0.01810
0.01429
0.02146
0.00878
School
Districts
$ 0.10366
0.10370
0.10681
0.14310
Total Direct
& Overlapping
Rates
$ 1.13724
1.13184
1.14100
1.16773
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and is therefore
unavailable.
128
4. -C3 1,-- 0) CO CO co r- Lo 10 10 N-
O ow -1- r
CO (I) ci c:i ci c:i ci c:i ci c:i ci c:i 4
CO 0 0
4., Hi ....
c.) —
L. qs
co ...
et o
1 --
Assessed
CO 10 ( \I CO 1"-- CO 0) CD
r
c.
0) r--- CO 10 0) CD CO (0 0) CS) CD
1,-• CO C \I 0-) CO CD C \ I CO CO CD CO
0:1) v" CO 0) 10 CD -1- Lo co cs) r-- co
z c\i -17 C \I- C\I (5N- N- N- C5
70 (\J CO ("J CV ("1 C\I N- c- N- c- 0)
>
Ea OD
c=' (::' c='
46CO C 1:300 'cr \I CO CD CV C \I 10 CO CV
00 r--- r-- Lo -cr CV CO CD C:) CD CD
CS)
(0 u) ci c:i ci c:i ci c:i ci c:i ci c:i 06
CP 0 0
cu <
c.)
L. Tt
Et t
F-
r
N-
()
en .2 4.- 4 4.- oi r•- \J-
O CO CO t CO N- ("1
(/) >
(/)
Eft
0 =
• —I
_I co
C 0 OD
a)
-,-. u)
c o "
co a) T.2
0.
>4 0 o • -2 7?)
0. CI_ cr) 03
0
X C
0 0 70 0
RPV Associates
American Golf
California Water Service
Theodore Gardner
PV Terraces
(NI
r
CO
CO
CID
** Previously Ocean Trails LLP
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Roll
Total Tax
Fiscal Levy for
Year Fiscal Year
2005 $ 4,284
2006 4,643
2007 5,078
2008 5,351
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Four Fiscal Years
(amounts expressed in thousands)
Collected within the
Fiscal Year of the Levy
Percentage
Amount of Levy
$ 4,001 93.40%
4,506 97.06%
4,799 94.51%
5,316 99.35%
Source: County Assessor Data and City General Ledger
Collections in
Subsequent Years
$ 144
36
10
Total Collections to Date
Percentage
Amount of Levy
$ 4,145 96.76%
4,542 97.83%
4,809 94.70%
5,316 99.35%
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and
is therefore unavailable.
130
Fiscal
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
City of Rancho Palos Verdes
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts expressed in thousands, except per capita amount)
Governmental Activities
RDA
Tax Increment
Bond
5,455
5,455
5,455
5,455
5,455
5,455
5,450
5,435
5,410
5,370
RDA
Deferred Interest
Payable
3,111
3,111
3,111
3,111
3,111
3,111
2,469
2,284
2,061
1,786
Total
Primary
Government
8,566
8,566
8,566
8,566
8,566
8,566
7,919
7,719
7,471
7,156
131
Percentage
of Personal
Income
0.29%
0.42%
0.46%
0.45%
0.45%
0.44%
0.40%
0.40%
0.38%
0.37%
Per
Capita
193.17
190.64
208.19
203.94
202.40
200.09
181.94
179.55
173.37
166.56
Ratio of Debt
to Property
Value
0.14%
0.13%
0.12%
0.11%
0.11%
0.10%
0.09%
0.08%
0.07%
0.06%
City of Rancho Palos Verdes
Direct and Overlapping Governmental Activities Debt
Current Year
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
Metropolitan Water District
Los Angeles Community College District
Los Angeles Unified School District
Palos Verdes Unified School District
City of Rancho Palos Verdes
Palos Verdes Library District
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Los Angeles County General Fund Obligations
Los Angeles County Pension Obligations
Los Angeles County Superintendent of Schools Certificates of Participation
Los Angeles County Sanitation District No. 5 Authority
Los Angeles County South Bay Cities Sanitation District Authority
Los Angeles Unified School District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Los Angeles Unified School District self-supporting obligations
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
Total Debt
6/30/2008
150,054,336
1,370,820,000
7,325,045,000
69,950,681
0
9,075,000
$1,084,851,959
546,849,147
19,817,270
64,943,439
11,065,017
395,744,823
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
2007-08 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
Ratios to 2007-08 Assessed Valuation:
Direct Debt
Total Direct and Overlapping Tax and Assessment Debt
Ratios to Adiusted Assessed Valuation:
Gross Combined Total Debt
Net Combined Total Debt
$8,499,440,293
111.359.776
$8,388,080,517
0.00%
0.88%
1.18%
1.18%
Source: HdL Goren & Cone, L.A. County Auditor -Controller
132
'% Applicable (1)
1.061
1.56%
0.20%
46.96%
100
49.071
0.98%
0.984
0.984
10.87
4.728
0.22
City's Share of
Debt 6/30/08
1,591,783
21, 314,046
14,370,784
32, 850,111
4,453,176
$74,579,900
$10,674,943
5,380,996
195,002
7,059,352
523,154
870.639
$24,704,086
27.178
$24,676,908
$99,283,986
$99,256,808
Debt Limit
Total Net Debt applicable to limit
Legal Debt Margin
Total Net Debt applicable to the
limit as a percentage of Debt Limit
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
$ 691,696 $ 759,196 $ 804,357 $ 855,291 $ 902,133 $ 962,539 $ 1,021,177 $ 1,105, 647 $ 1,195,665 $ 1,274, 916
$ 691,696 $ 759,196 $ 804,357 $ 855,291 $ 902,133 $ 962,539 $ 1,021,177 $ 1,105,647 $ 1,195,665 $ 1,274,916
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Total Taxable Value (see page 127) $ 8,499,440
133
Debt Limit (15% of total taxable value) 1,274,916
Debt applicable to limit -
Legal Debt Margin $ 1,274,916
City of Rancho Palos Verdes
Demographic and Economic Statistics
Last Ten Fiscal Years
Education
Per Level in
Personal Capita Years of
Fiscal Income Personal Median Formal School Unemployment
Year Population (000's) Income Age Schooling Enrollment Rate (3)
1999 44,345 DNA DNA DNA DNA DNA DNA
2000 44,933 DNA 46,294 ' 44.7 ' DNA DNA DNA
2001 41,145 DNA 46,294 ' 44.7 ' DNA DNA DNA
2002 42,002 DNA 46,294 ' 44.7 ' DNA DNA DNA
2003 42,322 DNA 46,294 ' 44.7 ' DNA DNA DNA
2004 42,810 DNA 46,294 1 44.7 ' DNA DNA DNA
2005 43,525 2,280,807 2 51,003 2 43.4 2 DNA 12,978 2 1.5% 2
2006 42,991 2,280,807 2 51,003 2 43.4 2 DNA 12,978 2 1.5% 2
2007 43,092 2,280,807 2 51,003 2 43.4 2 DNA 12,978 2 1.5% 2
2008 42,964 DNA DNA DNA DNA DNA DNA
Population information is provided by the California Department of Finance.
1. Data available with the 2000 U.S. Census. The data will not be updated until 2010
2. Data taken from the 2005-2007 American Community Survey 3 -Year Estimates. The 3 -Year estimate provided by the Survey is a
3 -year average. Data for individual years was not available for areas with populations less than 65,000. The Survey is a service of'
the U.S. Census Bureau.
DNA: Data Not Available
Note: A different data source was used for the June 30, 2007 Comprehensive Annual Financial Report. The updated data for 2008
was not deemed accurate, as it was not verifiable with other sources of information. This table was corrected for the current
report using only information from the U.S. Census Bureau and the California Department of Finance.
134
City of Rancho Palos Verdes
Principal Employers
Current Year
Employer
Palos Verdes Peninsula Unified School District (1)
Trump National
Marymount College
Ralphs
Keller Williams Realty
Belmontcorp Ltd
Green Hills Memorial Park
American Golf Corp
St. John Fishers
Bally Total Fitness
Subtotal of Principal Employers
Total City Employment (2)
Percentage
of Total City
Employees Rank Employment
1,970 1 9.00%
300 2 1.37%
195 3 0.89%
115 4 0.53%
112 5 0.51%
94 6 0.43%
85 7 0.39%
70 8 0.32%
50 9 0.23%
50 10 0.23%
3,041 13.89%
21,900
Source: Direct Contact with Local Businesses.
1: The number shown represents the total employee count for the entire District. The District
does not track employees by location.
2: Total City Employment provided by EDD Labor Force Data.
Note: There is currently no agency or service that monitors employees by business located
within City limits. All available information is for the greater Los Angeles area. The City is
primarily a bedroom community with very little commercial activity. Data was obtained by
making inquiries with the Planning, Building & Code Enforcement Department and the City
Manager's office to determine the entities that are likely the largest employers. Then those
likely employers were contacted directly to determine the number of employees. This data
is not available for the previous nine years.
135
City of Rancho Palos Verdes
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Function
General Government 41 41 41 42 45 45 45 47 50 55
Recreation Part -Time 10 10 10 10 10 10 10 10 10 10
Total 51 51 51 52 55 55 55 57 60 65
Source: City Budget documents and Payroll records
136
City of Rancho Palos Verdes
Operating Indicators by Function
Last Seven Fiscal Years
Fiscal Year
2002 2003 2004 2005 2006 2007 2008
Function
Administration
Employee Resignations 4 - 5 4 4 4 8
Workers Compensation Claims 3 2 2 3 4 2 4
Liability Claims 14 14 14 18 31 14 16
Budget Adjustments 35 30 27 36 48 32 26
Business Licenses Issued 1,600 1,961 2,102 1,909 1,801 1,837 1,709
Web Site Page Views 88,888 119,104 133,481 224,777 1.3 mil 1.6 mil 701,004
Public Safety
Part I Crime Rates (per 10,000 population) 138 122 122 101 120 117 130
Public Works
Solid Waste Diversion Rates 51% 57% 61% 59% 55% 56% 56%
Pavement Rating 80 80 89 89 82 82 DNA
Recreation and Parks
Park Events 1,022 915 825 780 937 770 692
Class meetings at Parks 1,774 2,134 2,935 2,893 2,856 2,647 2,772
Docent led Nature Hikes 54 45 80 65 62 98 91
Planning, Building and Code Enforcement
Building Permits processed 1,264 1,327 1,399 1,233 1,382 1,244 1,692
Plan Checks 121 150 186 208 163 164 247
Municipal code Violations closed 138 203 214 180 159 162 216
Source: City Departments
DNA: Data Not Available
The information presented in this table was not collected by the City prior to Fiscal Year 2002.
137
City of Rancho Palos Verdes
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Function
Administration
Computer Workstations DNA DNA DNA DNA DNA DNA 81 81 85 91
Public safety'
Public works
Street Miles 143 143 143 143 143 143 143 143 143 143
Traffic Signals 12 13 13 14 15 15 15 15 15 16
Parks and Recreation
Parks 13 13 14 15 15 15 15 16 16 16
Planning, Building and Code Enforcement
Vehicles used for inspections DNA DNA 3 3 3 3 3 3 3 5
Source: City Capital Asset Records
DNA: Data Not Available
1: Public safety services are contracted with other agencies. The City does not own any public safety capital assets.
138