CAFR FY 2006-07Lig
CI 1 Y OF RANCHO PALOS VERDES
C A L 1 F OR NIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FISCAL YEA ENDED
JUNE 30, 2007
CITY OF RANCHO PALOS VERDES,
CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2007
Prepared By:
Finance Department
Dennis McLean, Director of Finance & Information Technology
Kathryn Downs, Deputy Director of Finance & Information Technology
Cover photo provides a view of the Rancho Palos Verdes shoreline from the Frank A. Vanderlip, Sr. Park. Photo provided
courtesy of Ed Shea.
INTRODUCTORY SECTION
Del Cerro Park
Photo by Ed Shea
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2007
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents i -iii
Letter of Transmittal iv -x
Directory of City Officials xi
Organization Chart xii
GFOA Certificate of Achievement for Excellence in Financial Reporting xiii
FINANCIAL SECTION:
Independent Auditor's Report 1
Management Discussion and Analysis 3
Government -Wide Financial Statements
Statement of Net Assets 12
Statement of Activities 13
Fund Financial Statements
Governmental Funds
Balance Sheet 15
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets 17
Statement of Revenues, Expenditures, and Changes in Fund Balances 18
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities 20
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual 21
Street Maintenance Special Revenue Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
- Budget and Actual 22
Proprietary Funds
Statement of Net Assets 23
Statement of Revenues, Expenses, and Changes in Fund Net Assets 24
Statement of Cash Flows 25
Notes to the Financial Statements 26
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CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2007
TABLE OF CONTENTS
Supplementary Information
Major Fund Budgetary Comparison Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual
Capital Improvement Projects Capital Projects Fund 53
RDA Debt Service Fund 54
Non -Major Governmental Funds
Combining Balance Sheet 58
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 64
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Special Revenue Funds
Air Quality Management Fund 70
Community Development Block Grant Fund 71
El Prado Fund 72
RDA Housing Set -Aside Fund 73
Proposition A Fund 74
Proposition C Fund 75
Beautification Fund 76
Waste Reduction Fund 77
Public Safety Grants Fund 78
1972 Act Fund 79
1911 Act Fund 80
JPIA — Portuguese Bend Fund 81
Habitat Restoration Fund 82
Subregion One Maintenance Fund 83
Parks/Measure A Fund 84
Abalone Cove Sewer Assessment District 85
RPV TV Channel 33 86
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Capital Projects Funds
Bikeways Fund 87
RDA Abalone Cove Fund 88
Environmental Excise Tax Fund 89
Quimby Fund 90
Affordable Housing Fund 91
RDA Portuguese Bend Fund 92
Utility Undergrounding Fund 93
Roadway Beautification Fund 94
Schedule of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual — Permanent Fund
JPIA — Abalone Cove Fund 95
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CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2007
TABLE OF CONTENTS
Internal Service Funds
Combining Statement of Net Assets 97
Combining Statement of Revenues, Expenses, and Changes
in Fund Net Assets 98
Combining Statement of Cash Flows 99
STATISTICAL SECTION (Unaudited)
Financial Trends
Net Assets by Component 100
Changes in Net Assets 101
Governmental Activities Tax Revenue By Source 103
Fund Balances of Governmental Funds 104
Changes in Fund Balances of Governmental Funds 105
Revenue Capacity
General Governmental Tax Revenues By Source 106
Assessed Value and Estimated Actual Value of Tax Property 107
Property Tax Rates - Direct and Overlapping Governments 108
Principal Property Taxpayers 109
Property Tax Levies and Collections 110
Debt Capacity
Ratios of Outstanding Debt by Type 111
Direct and Overlapping Governmental Activities Debt 112
Legal Debt Margin Information 113
Demographic and Economic Information
Demographic and Economic Statistics 114
Principal Employers 115
Operating Information
Full-time Equivalent City Government Employees by Function 116
Operating Indicators by Function 117
Capital Asset Statistics by Function 118
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Ladera Linda Community Park
Photo by Ed Shea
Though the General fund reserves of the City increased during the fiscal year ended June 30, 2007, 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
experience. The budget adopted by the City Council for the fiscal year ending June 30, 2008 presents the
expectation of a decrease of General fund reserves. A potential economic downturn affecting revenue sources such
as property tax and building 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 completed its first year of
management of the City's Natural Communities Conservation Plan (NCCP) Preserve 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 that the General Plan Update will be presented to the Planning Commission and City Council in
2008.
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 and will be used in the
preparation of the City's updated Housing Element, which according to State Law must be completed by July
1, 2008. The City has entered into a contract with a consultant to assist the City in the preparation of the
updated Housing Element. This work is currently underway and it is anticipated that the updated Housing
Element will be brought to the Planning Commission for review in early 2008.
The City oversaw the completion of the repair and rehabilitation of the Trump National golf course, which was
damaged by a landslide in 1999. The City continued to work with the developer to permanently open the 18 -
hole golf course, which occurred during the summer of 2007. This is an important milestone for the project,
which began construction in 1998, as it is the final certificate of occupancy for the golf course, showing that
the developer has met all of his obligations pertaining to the opening of the golf course and has permanently
completed the landslide repair.
Public Works
Phase II of the Water Quality Flood Protection (WQFP) storm drain lining program was completed, which
repaired the storm drain system on Monero Drive. In addition, a 2007 Storm Drain Lining project was
completed, which lined various pipes throughout the City.
Numerous catch basins and storm drain lines were cleaned throughout the City as part of the WQFP
program.
Catch basin screens were installed at eighty-nine catch basin locations throughout the City to prohibit
litter from being conveyed to the Santa Monica Bay. The project was completed using a $320,000 grant
from the County.
Public Works Staff and its engineering consultants completed design of a storm drain system to service
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the McCarrell Canyon drainage area. The new system is expected to be constructed in 2008, and has
been designed accommodate a 100 -year storm.
The City completed improvements to the Hesse Park public restrooms to comply with the Americans with
Disabilities Act. The City was able to utilize Community Development Block Grant funding to complete
the improvements.
A waterproofing and moisture remediation project was completed at the Hesse Park Community Center
building.
Roofing and painting improvements were completed at the Ladera Linda Community Center.
Modular buildings were installed at Upper Point Vicente Park for the newly established Disaster
Communications Center and the Palos Verdes on the Net Annex.
A sewer lateral was reconstructed for the City Hall building at Upper Point Vicente Park.
Construction of a trail linking Point Vicente Interpretive Center (PVIC) and the Oceanfront Estates
neighborhood was completed, along with the installation of a new water fountain at the PVIC.
Bluff -top safety fencing was installed at both Abalone Cove Shoreline Park and the PVIC.
The arterial slurry seal project on Palos Verdes Drive South (PVDS) was completed between Schooner
Drive and Narcissa.
Emergency repairs were completed to stabilize a section of roadway on PVDS that was dipping toward
the ocean.
Residential streets overlay and slurry improvements were completed in Area 2 of the City.
A school safety pavement striping program was completed as part of the City's ongoing Traffic
Management Program.
Recreation and Parks
Recreation and Parks Staff completed the fabrication and installation of the Point Vicente Interpretive
Center exhibits.
Recreation and Parks Staff hosted the grand opening and dedication ceremony for the expanded Point
Vicente Interpretive Center.
Recreation and Parks Staff oversaw the first year of operation at the expanded Point Vicente Interpretive
Center, attracting approximately 40,000 visitors to the museum.
Recreation and Parks Staff coordinated the fabrication and installation of a new exhibit dedicated to the
memory of Marineland (opened to the public in July 2007).
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.
The Los Serenos de Pointe Vicente docents continued their successful docent -led hike programs at
several sites throughout the City.
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.
The City hosted two drama productions performed by Shakespeare by the Sea at Hesse Park.
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Recreation and Parks Staff continued to coordinate several annual 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
continue 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 prevailed in the Los Angeles County Superior Court in the Monks v. City of Rancho Palos Verdes
lawsuit wherein a group of property owners in the Portuguese Bend Landslide area sought to overturn the
City's Moratorium Ordinance to allow residential development on vacant lots.
On August 29, 2006, the City Council conducted a Joint Workshop with the Emergency Preparedness
Committee and received a briefing from various agencies and organizations concerning their role,
responsibilities and plan for emergency preparedness and response.
In September 2006, the City amended its contract with the Los Angeles County Sheriff's Department to
add a third regional traffic control deputy during the p.m. and weekend shift.
On October 7, 2006, the City Council conducted a Landslide Workshop at Miraleste Intermediate School
which included presentations and discussion of the history, land use controls, significant observations
and existing data related to the Portuguese Bend Landslide Complex.
On April 4, 2007, the City Council adopted the Uniform Public Construction Cost Accounting Act And An
Ordinance Establishing Procedures For Bidding Procedures For Public Projects Under The Uniform
Public Construction Cost Accounting Act. The adoption Uniform bidding procedures for public projects is
expected to streamline the delivery of public construction projects while maintaining accountability.
On April 17, 2007, the City Council appointed five residents to serve as an Oversight Committee for the
Water Quality and Flood Protection program. The Committee met 4 times with Staff during the months
of April and May 2007 to review the City's storm drain program that is partially funded via a user fee paid
by property owners that use the system. Upon completing its review, the Committee issued its
independent report to the City Council, dated June 12, 2007. On June 19, 2007, based upon the
Committee's report and Staff's recommendation, the City Council voted to increase the storm drain user
fee rate 2% for FY07-08.,
On June 5, 2007, the City Council approved the 10% increase of cost -based fees and increases of
facility rental rates ranging from 50-75% to improve the City's recovery of costs for certain services
provided to the public..
The City continued to operate its educational cable access channel — RPV Channel 33, which was first
launched in August 2005. On January 27, 2007, the City Council conducted a public workshop regarding the
channel, at which time the Council decided to continue the operation of the channel and to appropriate funds
to purchase equipment to improve the broadcast quality and to further automate the operation of the station.
The City Council conducted a Tactical Planning Workshop on March 24, 2007 to review and update the
City Council's goals, which were initially created in 2004. The Council refined its previous goals to
include: 1) Continue the Water Quality and Flood Protection program; 2) Complete the Natural
Communities Conservation Plan and acquiring additional acreage for the Nature Preserve from willing
sellers; 3) Reducing speeding and controlling parking in residential neighborhoods; 4) Prepare a Civic
Center Master Plan and Facilitate Active Recreation at Upper Hesse Park; 5) Improving emergency
services and preparedness; and 6) Bringing the Eastview area into the Palos Verdes Unified School
District.
In February 2007, Ronene Anda was appointed as the new Captain of the Lomita Sheriff's Station, which
provides law enforcement services to the City of Rancho Palos Verdes, as well as the Cities of Rolling
Hills, Rolling Hills Estates and Lomita.
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In March 2007, the City Council hired Carolyn Lehr as the new City Manager. She is the City's sixth City
Manager and the first woman to fill the position.
In May 2007, the City Council approved the new City Manager's 6 -month Management Achievement
Plan (MAP) to identify and track progress on completing the Council's tactical goals and other significant
work projects.
The City joined the U.S. Mayors Climate Protection Agreement's "Cool Cities" pledge with the goal of
reducing City-wide carbon dioxide (CO2) pollution to 7% below 1990 levels by 2012.
The City Council adopted ordinances to further strengthen the City's Municipal Code to regulate
solicitation in compliance with current case law, address targeting picketing in residential areas, and
prohibit the establishment of marijuana dispensaries.
On June 30, 2007, the City celebrated the grand opening of a new facility and radio antenna on the Civic
Center site for the Sheriff's Disaster Communications Service (DCS) and the Palos Verdes Volunteer
Alert Network (PVAN), which provides critical ham radio communications during natural disasters and
other emergencies.
The City continued to publish a newsletter that was distributed to all residents. The Fall 2006 newsletter
featured articles on proposed major development projects and the preparation of a Vision Plan for public
parklands within the City's coastal area, while the Winter 2007 highlighted the results of a biological
survey of the City's open space areas and two significant public trail improvements at Ocean Front
Estates and on Palos Verdes Drive East.
The Council continued to host two Community Leaders' Breakfasts. The Fall 2006 breakfast featured a
presentation on the Vision Plan and the Spring 2007 meeting provided an update on the progress of the
City's Water Quality and Flood Protection program.
The City Council continued to provide financial assistance to a variety of non-profit organizations that
provide service to the community. Notably, the City provided a first-time grant to the Palos Verdes
Peninsula Library District for the operation of "The Annex," a youth drop-in center located adjacent to the
main library in the Peninsula Center.
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,
2007, approximately $330,000 was expended on Federal financial assistance programs; and therefore, a single audit
was not required.
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
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encumbrance accounting system as one method of maintaining budgetary control. Encumbrances lapse at year-end,
and any unexpended balance is eligible to be carried over to the following year's budget appropriations with Council
approval.
Budget to Actual Comparison. Once again, the City experienced a favorable budget variance in the General fund for
the fiscal year ended June 30, 2007. Actual General fund revenues were approximately $1.2 million greater than the
amount budgeted, while expenditures and transfers out were approximately $0.9 million less than the amount
budgeted. The positive variances resulted from receipt of property taxes and interest earnings in excess of estimates
and the continued careful management of resources during FY06-07.
Debt Administration. At June 30, 2007, 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 majority of investments are
currently maintained with the State Treasurer's Local Agency Investment Fund (LAIF). LAIF provides high safety and
liquidity and is operated specifically for local governments. The City's invested balance with LAIF as of June 30,
2007 was $21,031,095. The average return on LAIF invested funds was 5.12%. As of June 30, 2007, the City had
also invested $5,000,000 with a commercial bank certificate of deposit bearing a 4.45% interest rate and $9,754,047
with U.S. Treasury Securities bearing various interest rates ranging from 4.81% to 4.92%. 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 106 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, 2007, Rancho Palos
Verdes continued its proactive liability risk management role through careful monitoring of losses, working closely
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 Vavrinek, Trine, Day & 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.
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, 2006. This was the fourteenth 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, Vavrinek, Trine, Day & Company, LLP and the
contributions of other Finance and Information Technology Department staff: Gary Gyves, Jane Lin, Selena Wright,
Gayle Vanoverbeck, and Nancy Vitez.
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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
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Fred Hesse, Jr. Park Community Center
Photo by Ed Shea
CITY OF RANCHO PALOS VERDES
DIRECTORY OF CITY OFFICIALS
JUNE 30, 2007
CITY COUNCIL
Thomas D. Long, Mayor
Douglas W. Stern, Mayor Pro -Tem
Larry Clark, Councilman
Peter Gardiner, 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
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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
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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, 2006
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 financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
Los Verdes Golf Course
Photo by Ed Shea
FINANCIAL SECTION
Bluff Trails at Point Vicente Interpretive Center
Photo by Ed Shea
Vavrinek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of City Council
City of Rancho Palos Verdes, California
VALUE THE DIFFERENCE
We have audited the accompanying financial statements of the governmental activities, business -type activities,
each major fund, and the aggregate remaining fund information of the City of Rancho Palos Verdes, as of and for
the year ended June 30, 2007, which collectively comprise the City of Rancho Palos Verdes' basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the City of
Rancho Palos Verdes' 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 financial
position of the governmental activities, business -type activities, each major fund, and the aggregate remaining
fund information of the City of Rancho Palos Verdes, California, as of June 30, 2007, and the respective changes
in financial position and cash flows, where applicable, thereof and the respective budgetary comparisons for the
General Fund and Street Maintenance Special Revenue Fund for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2007 on
our consideration of the City's internal control over fmancial reporting and on 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 required supplementary information, such as management's discussion and analysis on pages 3 through 10, is
not a required part of the basic financial statements, but is supplementary information required by the
Governmental Accounting Standards Board (GASB). We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion on it.
8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466,4410 Fax: 909.466.4431 www.vtdcpa.com
FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA
Our audit was conducted for the purpose of forming opinions on the fmancial statements that collectively
comprise the City's basic financial statements. The other supplementary information listed in the table of
contents, including the introductory section, combining schedules and additional budgetary comparison schedules,
and statistical sections are presented for purposes of additional analysis and are not a required part of the basic
financial statements. The combining schedules and additional budgetary comparison 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 the 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.
Rancho Cucamonga, California
December 14, 2007
2
r ea.)667°
MANAGEMENT'S DISCUSSION & ANALYSIS
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
As management of the City of Rancho Palos Verdes, we offer readers of the City of Rancho Palos Verdes'
financial statements this narrative overview and analysis of the financial activities of the City of Rancho Palos
Verdes for the fiscal year ended June 30, 2007. 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 i -vii of this report.
Financial Highlights
y The assets of the City of Rancho Palos Verdes exceed its liabilities, at the close of the fiscal year ended
June 30, 2007, by $147,147,774 (net assets). Of this amount, $23,081,381 (unrestricted net assets) may
be used to meet the government's ongoing obligations to citizens and creditors.
y The City's total net assets increased by $4,465,839. This increase is primarily attributable to the
acquisition of the Portuguese Bend Open Space.
As of June 30, 2007, the City's governmental funds reported combined ending fund balances of
$22,962,633, an increase of $60,149 in comparison with the prior year. The increase in combined ending
fund balances is primarily attributable to additional deposits of restricted revenue to the Special Revenue
funds. Approximately $8,122,695 (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 $14,872,974.
y As of June 30, 2007, unreserved undesignated fund balance for the General fund was $14,376,151 or 76%
of total General fund expenditures and transfers out.
y The City's total debt decreased by $238,529 (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.
3
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
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 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 newly established 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
primacy 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 12-14 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 four categories: governmental funds,
enterprise 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. Both 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.
4
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
The City of Rancho Palos Verdes maintains 30 individual governmental funds. 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 26 governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of these non -major 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.
The basic governmental fund financial statements can be found on pages 15-20 of this report.
Proprietary funds. The City of Rancho Palos Verdes maintains two types of proprietmy funds. Enterprise
funds are used to report the same functions presented as business -type activities in the government -wide financial
statements. The City of Rancho Palos Verdes 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. The proprietary fund financial statements provide separate information for the
enterprise fund, which is considered a major fund of the City of Rancho Palos Verdes. Conversely, all three
internal service funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. 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 26-52 of this report.
Other information. The combining statements referred to earlier in connection with non -major 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 58-98 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 $147,147,774 at June 30, 2007. By far the
largest portion of the City's net assets (76 percent) reflects its investment in capital assets (e.g. land,
infrastructure, buildings, and equipment). The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending.
5
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
Current and other assets
Capital assets
City of Rancho Palos Verdes Net Assets
Governmental
Activities
June 30, 2007 June 30, 200
$ 42,104,403
109,745,987
Total assets
151,850,390
Long-term liabilities outstanding
Other liabilities
Total liabilities
Invested in capital assets
Restricted
Unrestricted
7,711,785
4,406,960
12,118,745
109,745,987
12,162,490
17,823,168
$ 139,731,645
$ 40,452,19
109,990,75
150,442,94
7,950,31
4,060,62
12,010,93
109,990,75
12,417,15
16,024,09
$ 138,432,00
Business -type
Activities
Total
3 June 30, 2007
June 30, 2006
June 30, 2007
June 30, 2006
4 $ 5,490,107
$ 3,086,278
$ 47,594,510
$ 43,538,472
3 2,157,916
1,311,395
111,903,903
111,302,148
' 7,648,023
4,397,673
159,498,413
154,840,620
4-
-
7,711,785
7,950,314
5 231,894
287,464
4,638,854
4,348,089
3 231,894
287,464
12,350,639
12,298,403
3 2,157,916
1,311,395
111,903,903 111,302,148
a -
-
12,162,490 12,417,159
3 5,258,213
2,798,814
23,081,381 18,822,910
3 $ 7,416,129
$ 4,110,209
$ 147,147,774 I $ 142,542,217
An additional portion of the City's net assets ($12,162,490 or 8.3 percent) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets ($23,081,381 or
15.7 percent) may be used to meet the government's ongoing obligations to citizens and creditors.
Governmental activities. Governmental activities increased the City's net assets by $1,159,919, thereby
accounting for 26 percent of the total growth in the net assets of the City.
6
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
City of Rancho Palos Verdes Changes in Net Assets
Program revenues:
Charges for services
Operating contributions and grants
Capital contributions and grants
General revenues:
Property taxes
Other taxes
Other
Governmental
Activities
June 30, 2007
Business -type
Activities
Total
1 June 30, 2006
June 30, 2007 June 30, 2006
June 30, 2007 1 June 30, 2006
$ 2,195,987
4,200,344
317,115
10,235,025
5,782,270
3,460,001
$ 1,659,787 $
3,893,921
17,299,613
9,621,452
5,725,737
1,790,166
1,559,986
47,255
$ 2,195,987 $ 1,659,787
4,200,344 3,893,921
317,115 17,299,613
10,235,025
5,782,270
5,019,987
9,621,452
5,725,737
1,837,421
Total revenues
1
26,190,742
39,990,676
1,559,986
47,255
27,750,728
40,037,931
Expenses:
Administration
Public safety
Public works
Parks and recreation
Planning, building and code
enforcement
Interest on long-term debt
Water Quality Flood Protection
4,953,440
3,751,377
9,968,791
1,438,803
4,350,356
3,436,993
9,289,599
1,659,262
2,630,897 2,060,148
271,000 270,216
4,953,440
3,751,377
9,968,791
1,438,803
2,630,897
271,000
270,581
4,350,356
3,436,993
9,289,599
1,659,262
2,060,148
270,216
46,624
270,581
46,624
Total expenses
23,014,308
21,066,574
270,581
46,624
23,284,889
21,113,198
Increase in net assets before transfers
3,176,434
18,924,102
1,289,405
631
4,465,839
18,924,733
Transfers
(2,016,515)
(2,109,492)
2,016,515
2,109,492
-
-
Increase in net assets
1,159,919
16,814,610
3,305,920
2,110,123
4,465,839
18,924,733
Net assets - beginning of fiscal year
138,571,726
121,757,116
4,110,209
2,000,086
142,681,935
123,757,202
Net assets - end of fiscal year
$ 139,731,645
$ 138,571,726
$ 7,416,129
$ 4,110,209
$ 147,147,774
$ 142,681,935
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 $245,000 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 $1,118,000 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 $270,000. The net revenues and
expenses of Internal Service funds are reported with governmental activities in the Statement of
Activities.
7
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
Revenues by Source — Governmental Activities
other
13%
charges for
services
8%
operating
contributions
and grants
other taxes 1 / \ 16%
22%
property taxes
40%
capital
contributions
and grants
1%
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$22,962,633, an increase of $60,149 in comparison with the prior year. Approximately 61 percent of the
combined ending fund balances ($13,979,674) 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 $14,872,974. 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 ($6,152,853), and 2) for a variety of other restricted
purposes ($2,830,106).
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 $14,376,151, while total fund balance reached
$21,747,929. 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
99 percent of total General fund uses, while total fund balance represents 151 percent of that same amount.
During the current fiscal year, the fund balance of the City's General fund increased by $1,057,958. The key
factor in this increase is attributable to the continued careful management of resources during FY06-07.
The debt service fund has a net negative fund balance of $14,455,486. 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 $1,085,513, 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 $5,258,213. Unrestricted net assets of the Internal Service funds at the end of the year amounted to
$5,141,042. The total growth in proprietary fund type net assets was $3,576,205.
8
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
General Fund Budgetary Highlights
The difference between the original budget and the final amended budget was an increase of $847,799; and can be
briefly summarized as follows:
> A decrease of $785,536 was attributable to appropriations continued to FY07-08.
➢ An increase of approximately $876,105 was attributable to appropriations continued from FY05-06.
➢ Additional funds of $300,000 were approved for general liability insurance, which was affected by actual
prior years' claims.
➢ Additional funds of $300,000 were approved for legal services, primarily attributable to litigation.
➢ Other immaterial increases totaled approximately $160,000.
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental activities as of June 30, 2007,
amounts to $109,745,988 (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
decreased by less than 1 percent.
Major capital asset events during the current fiscal year included the following:
➢ Depreciation of $3.25 million was recorded for the City's capital assets.
> The residential overlay program was completed at a cost of about $1.9 million
> The Forrestal drainage swale improvement was completed at a cost of about $400,000.
> Eighty-nine catch basin filtration devices were installed at a cost of $320,000.
> The McCarrell Canyon drainage gabion wall and debris basin were completed at a cost of about
$260,000.
> The City Hall roof improvement was completed at a cost of about $200,000.
> The bluff -top safety fences for Point Vicente Interpretive Center and Abalone Cove Shoreline Park were
completed at a cost of about $130,000.
9
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
City of Rancho Palos Verdes Capital Assets
(net of depreciation)
Governmental
Activities
June 30, 2007 l June 30, 2006
Land $ 32,132,781 $ 32,132,781
Buildings 7,354,680 7,336,611
Park improvements 2,216,116 1,735,870
Roadways 46,138,492 46,273,578
Sewer system 10,267,911 10,723,020
Storm drain system 11,182,857 10,919,853
Vehicles 101,452 48,137
Computer equipment 151,385 186,881
Furniture and other equipment 111,058 113,883
Construction in Progress 89,256 520,139
Total
$ 109,745,988
$ 109,990,753
Additional information on the City's capital assets can be found in note 4 on pages 38-39 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 $7,711,785. Of this amount, $7,471,329 is a liability of the Redevelopment Agency.
City of Rancho Palos Verdes Outstanding Debt
RDA Tax Increment Bond
RDA Deferred Interest Payable
Employee compensated absences
Governmental
Activities
June 30, 2007 1 June 30, 2006
$ 5,410,000 $
2,061,329
240,456
5,435,000
2,284,211
231,103
Total
$ 7,711,785
$ 7,950,314
The City's total debt decreased by $238,529 (3 percent) 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 $1,195,664,700.
Additional information on the City's long-term debt can be found in note 5 on pages 39-41 of this report.
10
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2007
Economic Factors and Next Year's Budgets and Rates
➢ Local property values remain strong; therefore, property tax revenue (approximately 37 percent of City-
wide revenues) remains unaffected by the downturn in the economy. This factor was considered in
preparing the City's budget for FY07-08.
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 finance@rpv.com.
11
BASIC FINANCIAL STATEMENTS
„•� ,
Martingalerailhead
Shea
Photo by
GOVERNMENT -WIDE STATEMENTS
Ryan Park
Photo by Ed Shea
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET ASSETS
JUNE 30, 2007
Governmental Business -type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 37,555,940 $ 4,045,432 $ 41,601,372
Receivables:
Taxes 731,269 731,269
Interest 369,885 23,255 393,140
Notes 777,524 777,524
Other 960,849 21,420 982,269
Prepaid costs 1,006,544 1,400,000 2,406,544
Land held for development 702,392 702,392
Non -depreciable:
Land 32,132,781 32,132,781
Construction in progress 89,256 403,119 492,375
Depreciable, net of accumulated depreciation:
Property and equipment 363,894 10,632 374,526
Buildings and improvements 7,354,680 7,354,680
Infrastructure 69,805,376 1,744,165 71,549,541
Total Assets 151,850,390 7,648,023 159,498,413
LIABILITIES
Accounts payable and accrued liabilities 2,969,712 215,501 3,185,213
Interest payable 20,674 20,674
Retentions payable 14,717 16,393 31,110
Unearned revenue 110,065 110,065
Deposits 1,291,792 1,291,792
Noncurrent liabilities:
Due within one year 220,404 220,404
Due in more than one year 7,491,381 7,491,381
Total Liabilities 12,118,745 231,894 12,350,639
NET ASSETS
Invested in capital assets 109,745,987 2,157,916 111,903,903
Restricted for:
Community development:
Expendable 8,219,348 8,219,348
Non -expendable 1,000,000 1,000,000
Public safety 73,453 73,453
Public works 2,777,967 2,777,967
Recreation services 91,722 91,722
Unrestricted 17,823,168 5,258,213 23,081,381
Total Net Assets $ 139,731,645 $ 7,416,129 $ 147,147,774
See accompanying notes to financial statements.
12
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2007
Expenses
Program Revenues
Operating Capital
Charges for Contributions Contributions
Services and Grants and Grants
Govermnental Activities:
Administration $ 4,953,440 $ 29,360 $ 3,959
Public safety 3,751,377 331,636 166,197
Public works 9,968,791 184,938 4,030,188 $ 317,115
Parks and recreation 1,438,803 50,681
Planning, building and
code enforcement 2,630,897 1,599,372
Interest on long -teen debt 271,000
Total Govermnental Activities 23,014,308 2,195,987 4,200,344 317,115
Business -type Activities:
Water Protection Flood Control 270,581
Total Primary Government
$ 23,284,889 $ 2,195,987 $ 4,200,344 $ 317,115
General Revenues:
Taxes:
Property tax, levied for general purpose
Property tax, Redevelopment Agency tax increment
Storm Drain User Fees Levied for Water Quaility and Flood Protection
Transient occupancy tax
Franchise tax
Sales tax
In lieu sales tax (unrestricted)
Motor vehicle in lieu tax (unrestricted)
Utility user tax
Other taxes
Investment income
Other
Transfers
Total General Revenues and Transfers
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
See accompanying notes to financial statements. 13
Net Revenue (Expense) and Change in Net Assets
Governmental Business -type
Activities Activities
$ (4,920,121)
(3,253,544)
(5,436,550)
(1,388,122)
(1,031,525)
(271,000)
Total
$ (4,920,121)
(3,253,544)
(5,436,550)
(1,388,122)
(1,031,525)
(271,000)
(16,300,862) (16,300,862)
(16,300,862)
9,336,425
898,600
31,803
1,511,637
1,122,691
258,094
255,562
2,271,383
331,100
1,614,876
1,845,125
(2,016,515)
$ (270,581) (270,581)
(270,581) (16,571,443)
1,188,439
51,294
320,253
2,016,515
9,336,425
898,600
1,188,439
31,803
1,511,637
1,122,691
258,094
255,562
2,271,383
331,100
1,666,170
2,165,378
17,460,781 3,576,501 21,037,282
1,159,919 3,305,920 4,465,839
138,571,726 4,110,209 142,681,935
$ 139,731,645 $ 7,416,129 $ 147,147,774
14
View from Del Cerro Park
Photo by Ed Shea
FUND FINANCIAL STATEMENTS
CITY OF RANCHO PALOS VERDES
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2007
Special Capital
Revenue Projects
Street Capital
ASSETS General Maintenance Improvements
Cash and cash equivalents $ 17,152,624 $ 1,049,368 $ 2,802,952
Receivable
Taxes 701,726
Interest 175,307 8,622 2,479
Other 392,006 3,687
Due from other funds 392,675
Prepaid items 433,389
Advances to other funds 14,887,466
Land held for development
Total Assets $ 34,135,193 $ 1,061,677 $ 2,805,431
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities
Due to other funds
Retentions payable
Deferred revenue
Advances to Redevelopment Agency
Deposits
Total Liabilities
$ 2,140,257 $ 308,413 $ 13,485
8,232
8,946,983
1,291,792
12,387,264 308,413 13,485
FUND BALANCES
Reserved for:
Reimbursement settlement agreement
Prepaid costs 433,389
Advances to other funds 6,152,853
Land development
Housing set-aside
Unreserved:
Designated for continuing appropriations:
General fund 785,536
Special revenue funds 225,654
Capital projects funds 2,157,752
Permanent funds
Unreserved, undesignated and reported in:
General fund 14,376,151
Special revenue funds 527,610
Capital projects funds 634,194
Permanent funds
Debt service fund
Total Fund Balances 21,747,929 753,264 2,791,946
Total Liabilities and
Fund Balances $ 34,135,193 $ 1,061,677 $ 2,805,431
See accompanying notes to financial statements.
15
Debt
Service Other
Goveminental
RDA Funds Totals
$ 14,492 $ 11,197,953 $ 32,217,389
29,543 731,269
137,174 323,582
565,156 960,849
392,675
417,488 32,533 883,410
14,887,466
702,392 702,392
$ 431,980 $ 12,664,751 $ 51,099,032
$ 140,611 $ 2,602,766
392,675 392,675
6,485 14,717
8,946,983
$ 14,887,466 14,887,466
1,291,792
14,887,466 539,771 28,136,399
1,000,000 1,000,000
417,488 32,533 883,410
6,152,853
702,392 702,392
244,304 244,304
(14,872,974)
(14,455,486)
1,623,037
1,000,000
65,000
5,898,437
1,234,470
324,807
12,124,980
785,536
1,848,691
3,157,752
65,000
14,376,151
6,426,047
1,868,664
324,807
(14,872,974)
22,962,633
$ 431,980 $ 12,664,751 $ 51,099,032
See accompanying notes to financial statements.
16
Fred Hesse, Jr. Park
Photo by Ed Shea
CITY OF RANCHO PALOS VERDES
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2007
Fund Balances of Governmental Funds $ 22,962,633
Ainounts reported for governmental activities in the statement of net assets are
different because:
Capital assets of governmental activities are not financial resources and, therefore,
are not reported in the governmental funds. 109,382,093
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.
8,734,614
Intergovernmental revenues earned, but not available are deferred in the
fund financial statements. The revenue is not deferred on the Statement
of Activities. 102,304
Interest expenditures are recognized when due, and therefore, interest payable
is not recorded in the governmental funds. (20,674)
Long -teen notes receivable are not current available resources and, therefore,
are not reported in the governmental funds. 777,524
Long -teen liabilities are not due and payable in the current period and, therefore,
are not reported in the governmental funds. (7,711,785)
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.
5,504,936
Net Assets of Governmental Activities $ 139,731,645
See accompanying notes to financial statements.
17
CITY OF RANCHO PALOS VERDES
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2007
General
Special Capital
Revenue Projects
Street Capital
Maintenance Improvements
REVENUES
Taxes $ 14,804,862
Licenses and pennits 1,763,125
Fines and forfeitures 236,702
Use of money and property 2,570,582 $ 25,630 $ 46,253
Charges for services 57,150 3,668
Revenue from other agencies 346,884 1,100,660 25,496
Other revenues 135,338 18,278
Total Revenues
19,914,643 1,148,236
71,749
EXPENDITURES
Current:
Administration 4,536, 824
Public safety 3,751,132
Public works 2,100,413 1,819,740
Parks and recreation 1,318,860
Planning, building and
code enforcement 2,676,767
Pass through to other agencies
Capital outlay 2,886,693
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 14,383,996 1,819,740 2,886,693
Excess (Deficiency) of Revenues
Over Expenditures 5,530,647 (671,504) (2,814,944)
OTHER FINANCING SOURCES (USES)
Transfers in 150,471 1,138,517 2,807,697
Transfers out (4,623,160) (512,375)
Total Other Financing Sources (Uses) (4,472,689) 626,142 2,807,697
Net Change in Fund Balances 1,057,958 (45,362) (7,247)
Fund Balances, Beginning of Year 20,689,971 798,626 2,799,193
Fund Balances, End of Year $ 21,747,929 $ 753,264 $ 2,791,946
See accompanying notes to financial statements.
18
Debt
Service Other
Governmental
RDA Funds Totals
$ 716,870 $ 931,457 $ 16,453,189
1,763,125
236,702
834,732 3,477,197
60,818
2,644,820 4,117,860
50,004 203,620
716,870 4,461,013 26,312,511
13,377 56,810 4,607,011
3,751,132
2,944,238 6,864,391
1,318,860
4,175 2,680,942
151,510 151,510
237,812 3,124,505
247,882 247,882
1,389,614 1,389,614
1,802,383 3,243,035 24,135,847
(1,085,513) 1,217,978 2,176,664
392,454 4,489,139
(1,470,119) (6,605,654)
(1,077,665) (2,116,515)
(1,085,513) 140,313 60,149
(13,369,973) 11,984,667 22,902,484
$ (14,455,486) $ 12,124,980 $ 22,962,633
19
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
YEAR ENDED JUNE 30, 2007
Net Change in Fund Balances - Total Governmental Funds $ 60,149
Amounts reported for governmental activities in the Statement of Activities differs
from the amounts reported in the Statement of Revenues, Expenditures, and Changes
in Fund Balances 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
recgonized in the governmental funds. This activity is reconciled as follows:
Cost of assets capitalized
Depreciation expense
Unpaid accrued interest income is deferred in the governmental funds since it is
not available. This income is accrued in the Statement of Activities.
Intergovernmental revenues earned, but not available are deferred in the
fund financial statements.
2,799,941
(3,059,700)
1,118,489
(276,765)
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. 125
Increases in long -teen notes receivable use current financial resources and are
included in the expenditures, of governmental funds. Repayments of long -teen notes
receivable 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 -teen notes receivable. 8,866
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.
Principal payments on debt are recorded as expenditures in the funds. The expenditure
is not recognized in the Statement of Activites since it reduces the liability reported
on the Statement of Net Assets. Principal payments consisted of the following:
RDA Tax Increment Bond 25,000
RDA Deferred Interest Payable 222,882
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. 270,285
Change in Net Assets of Governmental Activities $ 1,159,919
(9,353)
See accompanying notes to financial statements.
20
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, 2007
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 of Revenues
Over 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
See accompanying notes to financial statements.
Budgeted Amounts
Original Final
$ 13,535,100
1,492,128
170,000
1,613,850
57,500
406,582
135,340
17,410,500
3,844,120
3,920,496
2,400,959
1,262,300
2,942,252
14,370,127
3,040,373
186,600
(5,069,653)
(4,883,053)
(1,842,680)
20,689,971
$ 14,143,200
1,582,128
170,000
2,193, 850
57,500
406,582
135,340
18,688,600
4,618,742
3,886,847
2,389,655
1,389,848
Actual
Ainounts
$ 14,804,862
1,763,125
236,702
2,570,582
57,150
346,884
135,338
19,914,643
4,536, 824
3,751,132
2,100,413
1,318,860
2,932,834 2,676,767
15,217,926 14,383,996
3,470,674 5,530,647
201,600
(4,691,363)
(4,489,763)
(1,019,089)
20,689,971
150,471
(4,623,160)
(4,472,689)
1,057,958
20,689,971
Variance with
Final Budget -
Positive
(Negative)
$ 661,662
180,997
66,702
376,732
(350)
(59,698)
(2)
1,226,043
81,918
135,715
289,242
70,988
256,067
833,930
2,059,973
(51,129)
68,203
17,074
2,077,047
$ 18,847,291 $ 19,670,882 $ 21,747,929 $ 2,077,047
21
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, 2007
REVENUES
Use of money and property
Charges for services
Revenue from other agencies
Other revenues
Total Revenues
EXPENDITURES
Current:
Public works
Excess (Deficiency) of Revenues
Over Expenditures
Budgeted Amounts
Original Final
$ 8,500 $
15,000
796,000
8,500 $
15,000
1,114,325
819,500 1,137,825
1,966,500 2,007,072
(1,147,000) (869,247)
OTHER FINANCING SOURCES (USES)
Transfers in 1,133,456 1,183,456
Transfers out (512,375)
Total Other Financing Sources (Uses) 1,133,456 671,081
Net Change in Fund Balance (13,544) (198,166)
Fund Balance, Beginning of Year 798,686 798,686
Fund Balance, End of Year
See accompanying notes to financial statements.
Actual
Amounts
25,630
3,668
1,100,660
18,278
1,148,236
1,819,740
(671,504)
1,138,517
(512,375)
626,142
(45,362)
798,686
Variance with
Final Budget -
Positive
(Negative)
$ 17,130
(11,332)
(13,665)
18,278
$ 785,142 $ 600,520 $ 753,324 $
22
10,411
187,332
197,743
(44,939)
(44,939)
152,804
152,804
CITY OF RANCHO PALOS VERDES
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30, 2007
Water Quality Governmental
Flood Protection Activities -
Enterprise Internal Service
Fund Funds
ASSETS
Current Assets
Cash and cash equivalents $ 4,045,432 $ 5,338,551
Receivables:
Interest 23,255 46,303
Other 21,420
Prepaid items 1,400,000 123,134
Total Current Assets 5,490,107 5,507,988
Noncurrent Assets
Capital assets:
Construction in progress 403,119
Property and equipment 11,813 1,262,556
Infrastructure 1,813,423
Accumulated depreciation (70,439) (898,662)
Total Noncurrent Assets 2,157,916 363,894
Total Assets 7,648,023 5,871,882
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities 215,501 366,946
Retainage payable 16,393
Total Liabilities 231,894 366,946
NET ASSETS
Invested in capital assets 2,157,916 363,894
Unrestricted 5,258,213 5,141,042
Total Net Assets $ 7,416,129 $ 5,504,936
See accompanying notes to financial statements.
23
CITY OF RANCHO PALOS VERDES
PROPRIETARY FUNDS
STATEMENT OF REVENUE, EXPENSES, AND CHANGES
IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2007
Water Quality Governmental
Flood Protection Activities -
Enterprise Internal Service
Fund Funds
OPERATING REVENUES
Charges for services $ 1,913,893
Total Operating Revenues 1,913,893
OPERATING EXPENSES
Personnel services 1,269,938
Material and supplies 105,683
Maintenance 226,731 383,409
Depreciation 43,850 189,578
Total Operating Expenses 270,581 1,948,608
Operating Income (Loss) (270,581) (34,715)
NONOPERATING REVENUES
Interest income 51,294 145,735
Other income 253
Storm Drain User Fees 1,188,439
Revenue from other agencies 320,000 59,265
Total Non Operating Revenues 1,559,986 205,000
Income Before Transfers 1,289,405 170,285
TRANSFERS IN 2,016,515 100,000
Change in Net Assets 3,305,920 270,285
Net Assets, Beginning of Year 4,110,209 5,234,651
Net Assets, End of Year $ 7,416,129 $ 5,504,936
See accompanying notes to financial statements.
24
CITY OF RANCHO PALOS VERDES
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Internal activity - payments from other funds
Payments to suppliers
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payment to escrow deposit (prepaid)
Acquisition of capital assets
NET CASH PROVIDED (USED) BY CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovermnental Revenue
Receipts from stonn drain user fees
Transfers in
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments
NET INCREASE 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 PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
Increase in prepaid items
Increase (decrease) in accrued liabilities
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
See accompanying notes to financial statements.
25
Water Quality
Flood Protection
Enterprise
Fund
$ (226,731)
(226,731)
(1,400,000)
(967,361)
(2,367,361)
320,253
1,188,439
2,016,515
3,525,207
43,336
974,451
3,070,981
$ 4,045,432
Governmental
Activities -
Internal Service
Funds
1,913,893
(1,660,957)
252,936
(204,571)
(204,571)
59,265
100,000
159,265
151,417
359,047
4,979,504
$ 5,338,551
(34,715)
189,578
(123,134)
221,207
252,936
$ (270,581) $
43,850
$ (226,731) $
NOTES TO FINANCIAL STATEMENTS
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
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, the RDA and the Authority are so intertwined
with the City, it is in substance, part of the City's operations. Accordingly, the balances and transactions of
the RDA are reported as separate funds in the Special Revenue, Debt Service, and Capital Projects Funds.
The balances and transactions of the Authority are reported as separate funds in the Permanent Fund and
Special Revenue Fund. 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 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.
26
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
The 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 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 from the Authority.
B. Accounting and Reporting 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.
27
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
• 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.
• 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 Type
• 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 Accountina/Measurement Focus
Government — Wide Financial Statements
The City's Government -Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities and Changes in Net Assets. These 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 and infrastructure as
well as 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. The types of transactions reported as program revenues 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 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.
28
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and Statement of Revenue, Expenditures,
and Changes in Fund Balances for all major governmental funds and aggregated non -major 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 government'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.
The Street Maintenance Special Revenue Fund is used to account for State highway users tax used for street
maintenance, right-of-way acquisition and street construction.
The Capital Improvement Capital Projects Fund is used to account for the funds used for the City's capital
improvement projects.
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 and other long-term obligations.
29
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
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. Their reported fund equity presents total net assets. The operating
statement of the proprietary funds present 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 to customers for sales and services. Operating
expenses for the enterprise and internal service funds include the costs of sales and services, the costs of
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'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.).
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.
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.
E. Budetary Accounting
Annual budgets are adopted on a basis consistent with GAAP for all governmental funds. All annual
appropriations lapse at fiscal year-end. 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 decrease in the amount of
$853,195. This decrease resulted primarily from amounts carried over to FY07-08.
30
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
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, 2007, 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 is deferred in the advancing governmental
fund and the principal portion of the advance is reported as a reservation of fund balance.
G. Cabital Assets
Capital assets, which include land, machinery and equipment (vehicles, computers, etc.), buildings and
improvements, and infrastructure assets (street systems, storm drains, sewer systems, etc.), 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 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
25 to 50 years
3 to 10 years
Infrastructure Assets
Roadway Network 10 to 100 years
Sewer Network 25 to 50 years
Storm Drain Network 30 to 100 years
Parks and Recreation Network 25 years
31
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
H. Employee Compensated Absences
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, 2007, vested accrued vacation and compensatory time amounted to $240,456.
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).
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 Equivalents
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 the State
Treasurer's Local Agency Investment Pool, which is highly liquid. 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, 2007, 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 claims (IBNR). 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.
32
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
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 $2,406,544 of prepaid items as of June 30, 2007. Of the total, the Water Quality Flood
Protection enterprise fund recorded $1,400,000 of prepaid items relating to an escrow deposit for the
acquisition of land under an eminent domain proceeding. See Note #14 for additional information.
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.
O. New Pronouncements
GASB Statement No. 45 - In June 2004, the GASB issued Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes
standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities
(assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports
of state and local governmental employers. This statement is not effective until June 30, 2009. The City has
not determined its effect on the financial statements.
GASB Statement No. 48 — In September 2006, the GASB issued Statement No. 49, Sales and Pledges of
Receivables and Future Revenues and Intra -Entity Transfers of Assets and Future Revenues. This statement
addresses accounting and financial reporting standards for transactions where governments exchange an
interest in their expected cash flows from collecting specific receivables or specific future revenues for
immediate cash payments. This statement establishes criteria and reporting standards regarding the exchange
as either a sale or collateralized borrowing, resulting in a liability. This statement is not effective until June
30, 2008. The City has not determined its effect on the financial statements.
33
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
GASB Statement No. 49 — In November 2006, the GASB issued Statement No. 49, Accounting and
Financial Reporting for Pollution Remediation Obligations. This statement addresses accounting and
financial reporting standards for pollution (including contamination) remediation obligations, which are
obligations to address the current or potential detrimental effects of existing pollution by participating in
pollution remediation activities such as site assessments and cleanups. This statement is not effective until
June 30, 2009. The City has not determined its effect on the financial statements.
GASB Statement No. 50 — In May 2007, the GASB issued Statement No. 50, Pension Disclosures an
amendment of GASB Statements No. 25 and No. 27. This statement more closely aligns the financial
reporting requirements for pensions with those for other postemployment benefits (OPEB) and, in doing so,
enhances information disclosed in notes to financial statements or presented as required supplementary
information (RSI) by pension plans and by employers that provide pension benefits. This statement is not
effective until June 30, 2008. The City has not determined its effect on the financial statements.
GASB Statement No. 51 — In June 2007, the GASB issued Statement No. 51, Accounting and Financial
Reporting for Intangible Assets. This statement establishes accounting and financial reporting standards for
many different types of assets that may be considered intangible assets, including easements, water rights,
timber rights, patents, trademarks, and computer software. This statement is not effective until June 30, 2010.
The City has not determined its effect on the financial statements.
NOTE #2 — CASH AND INVESTMENTS
Cash and investments as of June 30, 2007, are classified in the accompanying financial statements as follows:
Governmental Funds
Proprietary Funds:
Enterprise Fund
Internal Service Funds
Cash and investments as of June 30, 2007 consist of the following:
$ 32,217,389
4,045,432
5,338,551
$ 41,601,372
Petty Cash $ 2,500
Deposits with Financial Institutions 5,813,730
Investments 35,785,142
$ 41,601,372
34
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
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. The table also identifies certain provisions of the California Government Code that
address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Authorized Maximum Amount or Percent Investment
Investment Type Maturity of Portfolio in One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 7 days 15% None
Reverse Repurchase Agreements 92 days 20% of base value None
Medium -Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 15% 5%
Mortgage Pass -Through Securities 5 years 20% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (other investment pools) N/A None None
Money Market Savings/Demand Deposits N/A $1 Million 15%
35
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #2 — CASH AND INVESTMENTS, (Continued)
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, the greater the 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 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 13 to 24 25 to 60 More Than
Investment Type or Less Months Months 60 Months
State Investment Pool $21,031,095 $21,031,095
Certificate of Deposit 5,000,000 5,000,000
U.S. Treasury Securities 9,754,047 9,754,047
Total $ 35,785,142 $ 35,785,142 $ $ $
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, where as, US 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, 2007, the
City's investments in LAIF and US Treasury 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
36
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #2 — CASH AND INVESTMENTS, (Continued)
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 $5,544,400 at June 30, 2007.
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
LAIF 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 California State Treasurer and is not
registered with the Securities and Exchange Commission. An oversight committee comprised of California State
officials and various participants, provide 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
Inter -fund balances consisted of the following at June 30, 2007:
Due to the General Fund from:
Nonmajor Governmental Funds:
CDBG Special Revenue Fund $ 29,338
Measure A Special Revenue Fund 363,337
Total Non -major Governmental Funds 392,675
Total Due to the General Fund $ 392,675
General fund monies were used to cover non -major fund grant expenditures until reimbursement is received from
the grant agency.
37
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #3 — INTERFUND TRANSACTIONS, (Continued)
Inter -fund Advances
The General Fund has advanced the RDA Debt Service Fund amounts as described below:
Advances to the Redevelopment Agency
Balance Balance
July 1, 2006 Additions Deletions June 30, 2007
$ 13,688,479 $ 1,198,987 $ 14,887,466
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, 2007, no
revenue was available to the RDA to repay the advances due to the City, nor are sufficient revenues expected to
be available to repay advances in the immediate future. Variable interest was accrued at a rate of 8.12 percent
during the fiscal year ended June 30, 2007. Of the $14,887,466 remaining, $11,583,181 relates to the Portuguese
Bend portion of the RDA, while $3,304,285 relates to the Abalone Cove portion. During the year ended June 30,
2007, accrued interest of $869,925 was added to the balance of the advance to the Portuguese Bend Fund, while
principal of $80,498 and accrued interest of $248,564 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.
38
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #3 — INTERFUND TRANSACTIONS, (Continued)
Interfund Transfers
Inter -fund transfers for the year ended June 30, 2007 consisted of the following:
0
ITransfer From
Nonmaj or
General Street Governmental
Fund Maintenance Funds Total
General Fund $ 150,471 $ 150,471
Street Maintenance $ 417,775 720,742 1,138,517
Capital Improvement Projects 1,747,171 $ 512,375 548,151 2,807,697
Nonmaj or Governmental Funds 341,699 50,755 392,454
WQ Flood Enterprise 2,016,515 2,016,515
Internal Service Funds 100,000 100,000
Total $ 4,623,160 $ 512,375 $ 1,470,119 $ 6,605,654
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund
that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations or grant
matching requirements.
39
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
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, 2007.
Depreciation expense was charged to functions/programs of the primary government as follows:
Beginning Ending
Governmental Activities Balance Increases Decreases Balance
Capital assets not being depreciated:
Land $ 32,132,781 $ 32,132,781
Construction in progress 520,139 $ 46,600 $ (477,483) 89,256
Total capital assets not being depreciated 32,652,920 46,600 (477,483) 32,222,037
Capital assets being depreciated:
Buildings and improvements 8,600,564 198,000 8,798,564
Vehicles 225,584 74,990 (71,170) 229,404
Computer equipment 528,805 75,957 (31,915) 572,847
Furniture, fixtures and equipment 406,685 53,622 460,307
Infrastructure
Roadway system 77,079,026 1,925,049 79,004,075
Sewer system 25,755,463 25,755,463
Storm drain system 12,634,933 513,483 13,148,416
Parks system 5,575,075 594,292 6,169,367
Total capital assets being depreciated 130,806,135 3,435,393 (103,085) 134,138,443
Less accumulated depreciation for:
Buildings and improvements (1,263,953) (179,931) (1,443,884)
Vehicles (177,447) (21,675) 71,170 (127,952)
Computer equipment (341,924) (111,453) 31,915 (421,462)
Furniture, fixtures and equipment (292,802) (56,447) (349,249)
Infrastructure
Roadway system (30,805,448) (2,060,135) (32,865,583)
Sewer system (15,032,443) (455,109) (15,487,552)
Storm drain system (1,715,080) (250,479) (1,965,559)
Parks system (3,839,205) (114,046) (3,953,251)
Total accumulated depreciation (53,468,302) (3,249,275) 103,085 (56,614,492)
Total capital assets being depreciated, net 77,337,833 186,118 77,523,951
Governinental activities capital assets, net $ 109,990,753 $ 232,718 $ (477,483) $ 109,745,988
Depreciation expense was charged to functions/programs of the primary government as follows:
Administration $ 179,931
Public works, including depreciation of general infrastructure assets 2,765,720
Recreation services 114,046
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 189,578
Total Depreciation Expense - Governinental Activities $ 3,249,275
40
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #4 — CAPITAL ASSETS AND DEPRECIATION, (Continued)
Beginning Ending
Business -type Activities Balance Increases Decreases Balance
Capital assets not being depreciated:
Construction in progress $ 8,493 $ 394,626 $ $ 403,119
Total capital assets not being depreciated 8,493 394,626 403,119
Capital assets being depreciated:
Computer equipment
Storm drain system
Total capital assets being depreciated
Less accumulated depreciation for:
Computer equipment
Storm drain system
Total accumulated depreciation
Total capital assets being depreciated, net
1,329,492
1,329,492
(26,590)
(26,590)
11,813
483,931
495,744
(1,181)
(42,668)
(43,849)
1,302,902 451,895
Business -type activities capital assets, net $ 1,311,395 $ 846,521 $
11,813
1,813,423
1,825,236
(1,181)
(69,258)
(70,439)
1,754,797
$ 2,157,916
Depreciation expense of $43,850 is included in the Water Quality Flood Protection enterprise fund.
NOTE #5 — LONG-TERM DEBT
Balance
July 1, 2006
RDA Tax Increment Bond $ 5,435,000
RDA Deferred Interest Payable 2,284,211
Employee compensated absences 231,103
Totals $ 7,950,314
Balance Amount Due
Additions Deletions June 30, 2007 in 2007
$ 25,000 $ 5,410,000 $ 40,000
222,882 2,061,329
$ 182,740 173,387 240,456 180,404
$ 182,740 $ 421,269 $ 7,711,785 $ 220,404
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
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.
41
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #5 — LONG-TERM DEBT, (Continued)
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 Maintenance
Nonexpendable Trust 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 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 will mature 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
42
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #5 — LONG-TERM DEBT, (Continued)
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 is $3,111,400. In
accordance with the MOU, the recalculated deferred interest does not accrue additional interest. As of June
30, 2007, a total of $1,050,071 in accumulated tax increment has been applied against this balance, including
$222,882 applied during fiscal year 2006-07. The remaining balance at June 30, 2007, was $2,061,329. 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, 2007.
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.
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 Ended Tax Allocation Bond
June 30 Principal Interest Total
2008 $ 40,000 $ 269,500 $ 309,500
2009 55,000 268,125 323,125
2010 65,000 265,125 330,125
2011 85,000 260,375 345,375
2012 100,000 255,750 355,750
2013-2017 790,000 1,177,750 1,967,750
2018-2022 1,420,000 905,500 2,325,500
2023-2027 2,275,000 448,875 2,723,875
2028 580,000 14,500 594,500
Total $ 5,410,000 $ 3,865,500 $ 9,275,500
B. Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences. Based on historical trends,
$180,404 is estimated to be the amount that will be used and/or paid out during FY 07-08.
43
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
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.
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, 2007 are presented below, followed by
explanations of the nature and purpose of each reserve and designation.
Steet Capital RDA Debt Other
General Maintenance Improvement Service Govermnental
Fund Fund Fund Fund Funds
Reserved:
Reimbursement
settlement agreement
Advances to other funds
Prepaid costs
Land held for development
Housing set-aside
Total Reserved
$ 1,000,000
$ 6,152,853
433,389 $ 417,488 32,533
702,392
244,304
$ 6,586,242 $ $ $ 417,488 $ 1,979,229
Designated:
Continuing appropriations:
General funds $ 785,536
Special revenue funds $ 225,654 $ 1,623,037
Capital projects funds $ 2,157,752 1,000,000
Permanent funds 65,000
Total Designated $ 785,536 $ 225,654 $ 2,157,752 $ $ 2,688,037
44
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE, (Continued)
A. Designated for Encumbrances and Continuing Appropriations
These designations are maintained for current year budget appropriations that are formally carried over into
the subsequent fiscal year.
B. Reserved for Reimbursement Settlement Agreement
This reserve has been established under the legal requirements of the Reimbursement Settlement Agreement
(see Note #5).
C. 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
$8,734,614 recorded as deferred revenue (see Note #11).
D. 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.
E. 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.
F. Reserved for Housing Set -Aside
These funds are reserved for low and moderate -income housing as restricted by law or administrative action.
45
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #7 — PENSION PLAN
Plan Description
The City's defined benefit pension plan provides retirement and disability benefits, annual cost -of -living
adjustments, and death benefits to plan members and beneficiaries. The Plan is part of the Public Agency portion
of the California Public Employees Retirement System (Ca1PERS), a cost-sharing multiple -employer plan
administrated by Ca1PERS, which acts as a common investment and administrative agent for participating public
employers within the State of California. 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 Ca1PERS and adopts those benefits through local ordinance. The Ca1PERS issues a separate
comprehensive annual financial report. Copies of the Ca1PERS annual financial report may be obtained from the
Ca1PERS Executive Office — 400 P Street, Sacramento, California, 95814.
Funding Policy
A contribution of 8 percent of annual covered salary is required for each active plan member. For local
miscellaneous members, the City pays the full 6.5 percent contribution for all the full-time positions, while part-
time employees must contribute the 8 percent from earnings. Additionally, the City is required to contribute the
actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods
and assumptions used are those adopted by the Ca1PERS Board of Administration. The required employer
contribution rate for FY 06-07 was 12.906 percent for local miscellaneous members. The contribution
requirements of the plan members are established by State statute and the employer contribution rate is
established and may be amended by Ca1PERS.
Annual Pension Cost
For Fiscal Year 06-07, the City's annual and contributed pension cost was $631,220.
Three -Year Trend Information for Plan:
Annual Percentage
Fiscal Year Pension Cost of APC Net Pension
Ending (APC) Contributed Obligation
6/30/2005 $ 411,412 100% $ 0
6/30/2006 590,591 100% 0
6/30/2007 631,220 100% 0
46
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #7 — PENSION PLAN, (Continued)
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. Mandated pooling is effective with the June 30, 2003 valuation which determines the contribution rate
for 2005-2006. The 2005-2006 is the first year under pooling, and therefore, the City's pooled employer
contribution rate is the same as the stand-alone employer contribution rate. This is because the difference
between the pool's normal cost and the stand-alone normal cost will be phased out over five years, beginning with
2006-2007. For 2005-2006, 100 percent of the difference between the pool's normal costs and the stand-alone
normal cost is reflected in the development of the City's pooled employer contribution rate. For 2006-2007, only
80 percent of the difference will be reflected; for 2007-2008, 60 percent will be reflected, and so on, until it is
fully subject to the pool's normal costs for 2010-2011 and beyond.
At the time of joining the mandatory pooled plan, Ca1PERS 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 Ca1PERS.
NOTE #8 — INSURANCE
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
112 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 and 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. The accounting methods used by the CJPIA are more fully described at Note
#1-K.
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).
Six months 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; costs from $30,001 to $750,000 are pooled
based on a member's share of costs under $30,000; costs from $750,001 to $15,000,000 are pooled based
on payroll. Costs of covered claims above $15,000,000 are currently transferred to an excess insurance
policy. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual
aggregate.
47
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #8 — INSURANCE, (Continued)
• Workers' Compensation
Workers' Compensation. The City also participates in the workers' compensation pool administered by
the Authority. Members retain the first $50,000 of each claim. Claims are pooled separately between
public safety and non-public safety. Loss development reserves are allocated by pool and by loss layer
($0 to $100,000 allocated by retained amount and $100,000 to $2,000,000 by payroll). 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 loss
development reserves associated with losses from $100,000 to $2,000,000 are pooled based on payroll.
Costs from $2,000,000 to $150,000,000 are transferred to an excess insurance policy. Costs in excess of
$150,000,000 are pooled among the Members based on payroll. Administrative expenses are paid from
the Authority's investment earnings.
Purchased Insurance
• Environmental Insurance
The City participates in the pollution legal liability and remediation legal liability insurance, which is
available through the CJPIA. The policy covers sudden and gradual pollution of scheduled property,
streets, and storm drain outfalls 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 June 30, 2008. Each member of the CJPIA has a $10,000,000 limit during the 3 -year term of the
policy.
• Prot ertv Insurance
The City participates in the all-risk property protection program of the CJPIA. Several insurance
companies underwrite this insurance protection. The City's property is currently insured according to a
schedule of covered property submitted by the City to the CJPIA. Total all-risk property insurance
coverage is $11,319,800. There is a $5,000 per loss 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 $9,304,688. There is a deductible of 5 percent of value with a
minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
48
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #8 — INSURANCE, (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, 2007. As previously described in Note #1-K, the City
has no material claims, which would require loss provisions in the financial statements.
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 sink holes 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.
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. The CJPIA is defending the City in a
lawsuit regarding one of the storm drains that is underneath Western Avenue, and if that case is not settled, the
judgment could determine many of these issues.
49
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #9 — CONTINGENCIES AND COMMITMENTS, (Continued)
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
March 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, 2007
consisted of the following:
Source General Fund
Accrued Interest from Long -Term Advances
to the Redevelopment Agency $ 8,734,614
Advance on Federal Grant 109,108
Revenue earned but not available 102,304
Cash on deposit for the Del Cerro Lighting District 957
Total Deferred Revenues $ 8,946,983
50
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
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
special revenue fund that purchased the property (Housing Set -Aside fund).
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.
Although the developer withdrew from this application, the property owner has indicated a desire to move
forward with a similar project using another developer. The Agency will continue to evaluate development of the
Crestridge property either in combination with a development of the neighboring property or as a stand-alone
project. In the latter case, the Agency would seek proposals from developers who would be willing to enter into a
Disposition and Development Agreement to the Agency's satisfaction in which the developer would purchase the
Agency's property and develop it with a project that would include providing an acceptable affordable housing
component. In either case, if approved, the Agency anticipates transferring the Agency's land to the developer for
construction of a housing project with an affordable component. 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.
NOTE #13 — OTHER REQUIRED FUND DISCLOSURES
The following fund had deficit fund balance as of June 30, 2007:
RDA Debt Service Fund $ 14,455,486
CDBG 19
The City plans to finance this deficit through future revenues to the funds.
The following fund had expenditures in excess of the budget for the year ended June 30, 2007, as follows:
1972 Act Fund
Budget Expenditures Excess
$ 64,500 $ 65,936 $ (1,436)
51
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
NOTE #14 — SUBSEQUENT EVENTS
Preuavment of Escrow Deuosit
In June 2007, the City issued a payment of $1,400,000 as an escrow deposit for the acquisition of land pursuant to
an eminent domain proceeding. At June 30, 2007, the escrow deposit was included in the statement of net assets
as "prepaid items". Title of the land transferred and liquidation of the prepaid items occurred in July 2007.
Pension Obligation Bonds
On November 20, 2007, the City Council authorized the issuance of one or more Pension Obligation Bonds to
restructure the City's approximate $2,400,000 Side Fund Pension Unfunded Liability related to the mandatory
pooled Ca1PERS plan.
52
SUPPLEMENTARY INFORMATION
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 10,800 $ 10,800 $ 46,253 $ 35,453
Revenue from other agencies 673,531 673,531 25,496 (648,035)
Total Revenues
EXPENDITURES
Capital outlay
Excess (Deficiency) of Revenues
Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
684,331 684,331 71,749 (612,582)
3,248,146 3,203,652 2,886,693 316,959
(2,563,815) (2,519,321) (2,814,944) (295,623)
2,528,273 2,667,148 2,807,697 140,549
Net Change in Fund Balance (35,542) 147,827 (7,247) (155,074)
Fund Balance, Beginning of Year 2,799,193 2,799,193 2,799,193
Fund Balance, End of Year $ 2,763,651 $ 2,947,020 $ 2,791,946 $ (155,074)
53
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RDA DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Taxes
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
$ 634,300 $ 756,800 $ 716,870 $ (39,930)
EXPENDITURES
Current:
Administration 15,500 15,500 13,377 2,123
Pass through to other agencies 134,800 161,000 151,510 9,490
Debt Service
Principal 220,000 220,000 247,882 (27,882)
Interest and fiscal charges 1,090,000 1,440,000 1,389,614 50,386
Total Expenditures 1,460,300 1,836,500 1,802,383 34,117
Excess (Deficiency) of Revenues
Over Expenditures (826,000) (1,079,700) (1,085,513) (5,813)
OTHER FINANCING SOURCES (USES)
Net Change in Fund Balance (826,000) (1,079,700) (1,085,513) (5,813)
Fund Balance, Beginning of Year (13,369,973) (13,369,973) (13,369,973)
Fund Balance, End of Year
$ (14,195,973) $ (14,449,673) $ (14,455,486) $ (5,813)
54
CITY OF RANCHO PALOS VERDES
JUNE 30, 2007
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 Oualitv 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.
Redevelopment Aencv (RDA) — 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's 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 Safetv 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 Liahtina District — to account for revenues and costs associated with the City's
landscaping and lighting district.
1911 Act Liahtina District — to account for revenue and costs associated with a lighting district transferred to the
"city-wide" landscape and lighting district from the County in 1995.
Joint Powers Improvement Authority (JPIA) — 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
future habitat restoration efforts on City owned property.
55
CITY OF RANCHO PALOS VERDES
JUNE 30, 2007
NONMAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions, Continued
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.
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.
RPV TV Channel 33 — to account for donations and General Fund subsidies used to operate the City's cable
television channel
Capital Projects 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 used for the construction of bikeways and/or pedestrian facilities.
Redevelopment Aaencv (RDA) — Abalone Cove — to account for landslide abatement in the Abalone Cove Project
Area.
Environmental Excise Tax — to account for taxes received in connection with new construction within the City.
Quimby — to account for funds from the payment of fees or the dedication of land for park and recreation
purposes.
Affordable Housing — to account for in -lieu fees by developers for the City to construct low and moderate income
housing.
Redevelopment Aaencv (RDA) — Portuguese Bend — to account for monies used for landslide abatement in the
Portuguese Bend Project Area.
Utility Underroundin — 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.
56
CITY OF RANCHO PALOS VERDES
JUNE 30, 2007
NONMAJOR GOVERNMENTAL FUNDS
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 (JPIA) — 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.
57
CITY OF RANCHO PALOS VERDES
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2007
ASSETS
Special Revenue Funds
Air Quality
Management CDBG El Prado
Cash and cash equivalents $ 43,599 $ 34,600 $ 7,658
Receivable
Taxes 73
Interest 300 67
Other 13,421
Prepaid items 8,192
Land held for development
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities
Due to other funds
Retentions payable
Deferred revenue
Total Liabilities
FUND BALANCES
Reserved for:
Reimbursement settlement agreement
Prepaid items
Land development
Housing set-aside
Unreserved:
Designated for continuing appropriations
Special revenue funds
Capital projects funds
Pennanent funds
Unreserved, undesignated and reported in:
Special revenue funds
Capital projects funds
Pennanent funds
$ 57,320 $ 42,792 $ 7,798
57,320
$ 6,988 $
29,338
6,485
42,811
8,192
47
47
(8,211) 7,751
Total Fund Balances 57,320 (19) 7,751
Total Liabilities and
Fund Balances $ 57,320 $ 42,792 $ 7,798
58
Special Revenue Funds
Redevelopment
Agency -
Housing Proposition Proposition
Set -Aside A C
CONTINUED ON NEXT PAGE
Beautification
Waste
Reduction
$ 1,550,067 $ 46,119 $ 1,547,403 $ 1,082,076 $ 331,250
3,796
23,557 7,472 16,669 10,038 3,416
76,086 18,802
702,392
$ 2,279,812 $ 53,591 $ 1,564,072 $ 1,168,200 $ 353,468
$ 132 $ 652 $ 48 $ 5,500 $ 18,460
132 652 48 5,500 18,460
702,392
244,304
1,332,984
52,939 1,564,024
2,279,680 52,939
$ 2,279,812 $ 53,591 $
134,095
1,028,605 335,008
1,564,024 1,162,700 335,008
1,564,072 $ 1,168,200 $ 353,468
59
CITY OF RANCHO PALOS VERDES
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2007
Special Revenue Funds
Public
Safety
ASSETS Grants 1972 Act 1911 Act
Cash and cash equivalents $ 71,915 $ 24,571 $ 1,509,883
Receivable
Taxes 6,369 18,793
Interest 1,538 2,237 14,547
Other
Prepaid items
Land held for development
Total Assets
LIABILITIES AND FUND BALANCES
$ 73,453 $ 33,177 $ 1,543,223
LIABILITIES
Accounts payable and accrued liabilities $ 4,052 $ 48,629
Due to other funds
Retentions payable
Deferred revenue
Total Liabilities
FUND BALANCES
Reserved for:
Reimbursement settlement agreement
Prepaid items
Land development
Housing set-aside
Unreserved:
Designated for continuing appropriations
Special revenue funds
Capital projects funds
Pennanent funds
Unreserved, undesignated and reported in:
Special revenue funds
Capital projects funds
Pennanent funds
45,816
27,637
4,052 48,629
29,125 1,494,594
Total Fund Balances 73,453 29,125 1,494,594
Total Liabilities and
Fund Balances $ 73,453 $ 33,177 $ 1,543,223
60
Special Revenue Funds
Joint Powers
Improvement
Authority -
Portuguese Habitat Subregion One
Bend Restoration Maintenance
Measure A
CONTINUED ON NEXT PAGE
Abalone Cove
Sewer
Assessment RPV TV
District Channel 33
$ 280,825 $ 207,391 $ 749,846 $ 8,012 $ 64,486 $ 54,200
512
4,357 2,090 6,260 589 60
31,441 423,281
9,007
$ 285,182 $ 240,922 $ 756,106 $ 431,293 $ 65,587 $ 63,267
$ 3,986 $ 4,369 $ 1,537 $ 11,392 28,942
$ 363,337
3,986 4,369 1,537 363,337 11,392 28,942
9,007
5,000 50,000 26,600 28,542
276,196 186,553
754,569 67,956
27,595 (3,224)
281,196 236,553 754,569 67,956 54,195 34,325
$ 285,182 $ 240,922 $ 756,106 $ 431,293 $ 65,587 $ 63,267
61
CITY OF RANCHO PALOS VERDES
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2007
Capital Projects Funds
Redevelopment
Agency -
Abalone Environmental
ASSETS Bikeways Cove Excise Tax Quimby
Cash and cash equivalents $ 42,910 $ 5,608 $ 264,341 $ 23,556
Receivable
Taxes
Interest 568 87 2,336 210
Other 2,125
Prepaid items
Land held for development
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities
Due to other funds
Retentions payable
Deferred revenue
Total Liabilities
$ 45,603 $ 5,695 $ 266,677 $ 23,766
FUND BALANCES
Reserved for:
Reimbursement settlement agreement
Prepaid items
Land development
Housing set-aside
Unreserved:
Designated for continuing appropriations
Special revenue funds
Capital projects funds
Pennanent funds
Unreserved, undesignated and reported in:
Special revenue funds
Capital projects funds 45,603 5,695 266,677 23,766
Pennanent funds
Total Fund Balances 45,603 5,695 266,677 23,766
Total Liabilities and
Fund Balances $ 45,603 $ 5,695 $ 266,677 $ 23,766
62
Affordable
Housing
$ 1,100,454 $
9,841
$ 1,110,295 $
1,000,000
110,295
1,110,295
$ 1,110,295 $
Capital Projects Funds
Redevelopment
Agency -
Portuguese
Bend
Utility
Undergrounding
421,622 $
6,591
15,334
443,547 $
165
165
15,334
428,048
443,382
443,547 $
Roadway
Beautification
256,206 $
2,291
258,497 $
258,497
258,497
258,497 $
63
Pennanent Fund
Joint Powers
Improvement
Authority -
Abalone
Cove
95,040 $ 1,374,315 $
849
21,204
95,889 $ 1,395,519 $
95,889
95,889
95,889 $
5,712 $
5,712
1,000,000
65,000
324,807
1,389,807
1,395,519 $
Total
Non -major
Governmental
Funds
11,197,953
29,543
137,174
565,156
32,533
702,392
12,664,751
140,611
392,675
6,485
539,771
1,000,000
32,533
702,392
244,304
1,623,037
1,000,000
65,000
5,898,437
1,234,470
324,807
12,124,980
12,664,751
CITY OF RANCHO PALOS VERDES
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2007
Special Revenue Funds
Air Quality
Management CDBG El Prado
REVENUES
Taxes $ 1,749
Use of money and property $ 1,275 201
Revenue from other agencies 51,721 $ 245,366
Other revenues
Total Revenues 52,996 245,366 1,950
EXPENDITURES
Current:
Administration
Public works 41,818 327
Planning, building and
code enforcement
Capital outlay 237,812
Total Expenditures
41,818 237,812 327
Excess (Deficiency) of Revenues Over
(Under) Expenditures 11,178 7,554 1,623
Other Financing Sources (Uses):
Transfers in 21,022
Transfers out (28,600)
Total Other Financing Sources (Uses) (7,578)
Net Change in Fund Balances 11,178 (24) 1,623
FUND BALANCES, Beginning of Year 46,142 5 6,128
FUND BALANCES, End of Year $ 57,320 $ (19) $ 7,751
64
$
CONTINUED ON NEXT PAGE
Special Revenue Funds
Redevelopment
Agency -
Housing Proposition Proposition Waste
Set -Aside A C Beautification Reduction
181,730
73,631 $ 27,026 $ 50,708 $ 340,924 $ 42,094
704,171 571,699 65,155
255,361 731,197 622,407 340,924 107,249
1,595,558 2,980 192,837 178,932
4,175
4,175 1,595,558 2,980 192,837 178,932
251,186 (864,361) 619,427 148,087 (71,683)
(16,860) (386,288) (12,000) (40,308)
(16,860) (386,288) (12,000) (40,308)
251,186 (881,221) 233,139 136,087 (111,991)
2,028,494 934,160 1,330,885 1,026,613 446,999
$ 2,279,680 $ 52,939 $ 1,564,024 $ 1,162,700 $ 335,008
65
CITY OF RANCHO PALOS VERDES
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2007
Special Revenue Funds
Public
Safety
Grants 1972 Act 1911 Act
REVENUES
Taxes $ 254,330 $ 450,639
Use of money and property $ 4,919 7,047 46,159
Revenue from other agencies 100,000
Other revenues
Total Revenues 104,919
EXPENDITURES
Current:
Administration
Public works
Planning, building and
code enforcement
Capital outlay
261,377 496,798
65,936 348,708
Total Expenditures 65,936 348,708
Excess (Deficiency) of Revenues Over
(Under) Expenditures 104,919 195,441 148,090
Other Financing Sources (Uses):
Transfers in 50,755
Transfers out (100,000) (289,821) (113,194)
Total Other Financing Sources (Uses) (100,000) (239,066) (113,194)
Net Change in Fund Balances 4,919 (43,625) 34,896
FUND BALANCES, Beginning of Year 68,534 72,750 1,459,698
FUND BALANCES, End of Year $ 73,453 $ 29,125 $ 1,494,594
66
$
Special Revenue Funds
Joint Powers
Improvement
Authority -
Portuguese Habitat Subregion One
Bend Restoration Maintenance
Measure A
CONTINUED ON NEXT PAGE
Abalone Cove
Sewer
Assessment RPV TV
District Channel 33
$ 43,009
15,070 $ 8,233 $ 21,675 $ 1,743 1,758 $ 3,959
83,162 754,345
15,070 91,395 21,675 756,088 44,767 3,959
56,810
81,202 229,956 51,285 50,091
81,202 229,956 51,285 50,091 56,810
(66,132) (138,561) (29,610) 756,088 (5,324) (52,851)
91,500 76,752 57,000 10,700 84,725
(432,494)
91,500 76,752 57,000 (432,494) 10,700 84,725
25,368 (61,809) 27,390 323,594 5,376 31,874
255,828 298,362 727,179 (255,638) 48,819 2,451
$ 281,196 $ 236,553 $ 754,569 $ 67,956 $ 54,195 $ 34,325
67
CITY OF RANCHO PALOS VERDES
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2007
REVENUES
Taxes
Use of money and property
Revenue from other agencies
Other revenues
Bikeways
$ 1,123 $
69,201
Capital Projects
Redevelopment
Agency -
Abalone Enviromnental
Cove Excise Tax Quimby
286 $ 41,488 $ 5,925
Total Revenues 70,324 286 41,488 5,925
EXPENDITURES
Current:
Administration
Public works
Planning, building and
code enforcement
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues Over
(Under) Expenditures 70,324
Other Financing Sources (Uses):
Transfers in
Transfers out (50,554)
Total Other Financing Sources (Uses) (50,554)
286 41,488 5,925
Net Change in Fund Balances 19,770 286 41,488 5,925
FUND BALANCES, Beginning of Year 25,833 5,409 225,189 17,841
FUND BALANCES, End of Year $ 45,603 $ 5,695 $ 266,677 $ 23,766
68
Affordable
Housing
Capital Projects
Redevelopment
Agency -
Portuguese
Bend
$ 32,912 $
32,912
32,912
21,099 $
50,004
71,103
18,895
18,895
52,208
32,912 52,208
1,077,383 391,174
$ 1,110,295 $ 443,382 $
Utility
Undergrounding
Roadway
Beautification
7,661 $ 6,246 $
7,661
7,661
7,661
250,836
258,497 $
69
6,246
6,246
6,246
89,643
95,889 $
Permanent Fund
Joint Powers
Improvement
Authority -
Abalone
Cove
71,570
71,570
85,713
85,713
(14,143)
(14,143)
1,403,950
1,389,807 $
Total
Non -major
Govermnental
Funds
931,457
834,732
2,644,820
50,004
4,461,013
56,810
2,944,238
4,175
237,812
3,243,035
1,217,978
392,454
(1,470,119)
(1,077,665)
140,313
11,984,667
12,124,980
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
REVENUES
Use of money and property $ 1,700 $ 1,700 $ 1,275 $ (425)
Revenue from other agencies 52,000 52,000 51,721 (279)
Total Revenues 53,700 53,700 52,996 (704)
EXPENDITURES
Current:
Public works 42,000 42,000 41,818 182
Net Change in Fund Balance 11,700 11,700 11,178 (522)
Fund Balance, Beginning of Year 46,142 46,142 46,142
Fund Balance, End of Year $ 57,842 $ 57,842 $ 57,320 $ (522)
70
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Revenue from other agencies $ 307,438 $ 307,438 $ 245,366 $ (62,072)
EXPENDITURES
Capital outlay 298,838 240,064 237,812 2,252
Total Expenditures 298,838 240,064 237,812 2,252
Excess (Deficiency) of Revenues
Over Expenditures 8,600 67,374 7,554 (59,820)
OTHER FINANCING SOURCES (USES)
Transfers in 20,000 25,000 21,022 (3,978)
Transfers out (28,600) (28,600) (28,600)
Total Other Financing Sources (Uses) (8,600) (3,600) (7,578) (3,978)
Net Change in Fund Balance 63,774 (24) (63,798)
Fund Balance, Beginning of Year 5 5 5
Fund Balance, End of Year $ 5 $ 63,779 $ (19) $ (63,798)
71
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 1,200 $ 1,200 $ 1,749 $ 549
Use of money and property 100 100 201 101
Total Revenues 1,300 1,300 1,950 650
EXPENDITURES
Current:
Public works 900 900 327 573
Net Change in Fund Balance 400 400 1,623 1,223
Fund Balance, Beginning of Year 6,128 6,128 6,128
Fund Balance, End of Year $ 6,528 $ 6,528 $ 7,751 $ 1,223
72
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RDA HOUSING SET-ASIDE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 158,500 $ 189,000 $ 181,730 $ (7,270)
Use of money and property 35,000 35,000 73,631 38,631
Total Revenues 193,500 224,000 255,361 31,361
EXPENDITURES
Current:
Planning, building and
code enforcement 1,237,637 4,175 4,175
Total Expenditures 1,237,637 4,175 4,175
Net Change in Fund Balance (1,044,137) 219,825 251,186 31,361
Fund Balance, Beginning of Year 2,028,494 2,028,494 2,028,494
Fund Balance, End of Year $ 984,357 $ 2,248,319 $ 2,279,680 $ 31,361
73
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, 2007
REVENUES
Use of money and property
Revenue from other agencies
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 21,900 $ 21,900 $ 27,026 $ 5,126
673,000 673,000 704,171 31,171
Total Revenues 694,900 694,900 731,197 36,297
EXPENDITURES
Current:
Public works 1,351,904 1,604,804 1,595,558 9,246
Excess of Revenues
Over Expenditures (657,004) (909,904) (864,361) 45,543
OTHER FINANCING SOURCES (USES)
Transfers out 15,500 17,000 (16,860) (33,860)
Net Change in Fund Balance (641,504) (892,904) (881,221) 11,683
Fund Balance, Beginning of Year 934,160 934,160 934,160
Fund Balance, End of Year $ 292,656 $ 41,256 $ 52,939 $ 11,683
74
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, 2007
REVENUES
Use of money and property
Revenue from other agencies
Total Revenues
EXPENDITURES
Current:
Public works
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 16,800 $ 16,800 $ 50,708 $ 33,908
559,000 559,000 571,699 12,699
575,800 575,800 622,407 46,607
3,200 3,200 2,980 220
Excess (Deficiency) of Revenues
Over Expenditures 572,600 572,600 619,427 46,827
OTHER FINANCING SOURCES (USES)
Transfers out (650,000) (1,384,031) (386,288) 997,743
Net Change in Fund Balance (77,400) (811,431) 233,139 1,044,570
Fund Balance, Beginning of Year 1,330,885 1,330,885 1,330,885
Fund Balance, End of Year $ 1,253,485 $ 519,454 $ 1,564,024 $ 1,044,570
75
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
REVENUES
Use of money and property $ 256,500 $ 256,500 $ 340,924 $ 84,424
EXPENDITURES
Current:
Public works 231,300 194,826 192,837 1,989
Excess (Deficiency) of Revenues
Over Expenditures 25,200 61,674 148,087 86,413
OTHER FINANCING SOURCES (USES)
Transfers out (270,000) (270,000) (12,000)
Net Change in Fund Balance (244,800) (208,326) 136,087 344,413
Fund Balance, Beginning of Year 1,026,613 1,026,613 1,026,613
Fund Balance, End of Year $ 781,813 $ 818,287 $ 1,162,700 $ 344,413
76
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
REVENUES
Use of money and property $ 35,200 $ 35,200 $ 42,094 $ 6,894
Revenue from other agencies 65,000 65,000 65,155 155
Total Revenues 100,200 100,200 107,249 7,049
EXPENDITURES
Current:
Public works 192,800 263,052 178,932 84,120
Excess (Deficiency) of Revenues
Over Expenditures (92,600) (162,852) (71,683) 91,169
OTHER FINANCING USES
Transfers out (50,000) (65,000) (40,308) 24,692
Net Change in Fund Balance (142,600) (227,852) (111,991) 115,861
Fund Balance, Beginning of Year 446,999 446,999 446,999
Fund Balance, End of Year $ 304,399 $ 219,147 $ 335,008 $ 115,861
77
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 400 $ 400 $ 4,919 $ 4,519
Revenue from other agencies 100,000 100,000 100,000
Total Revenues 100,400 100,400 104,919 4,519
OTHER FINANCING SOURCES (USES)
Transfers out (100,000) (100,000) (100,000)
Net Change in Fund Balance 400 400 4,919 4,519
Fund Balance, Beginning of Year 68,534 68,534 68,534
Fund Balance, End of Year $ 68,934 $ 68,934 $ 73,453 $ 4,519
78
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 246,631 $ 246,631 $ 254,330 $ 7,699
Use of money and property 3,600 3,600 7,047 3,447
Total Revenues 250,231 250,231 261,377 11,146
EXPENDITURES
Current:
Public works 64,500 64,500 65,936 (1,436)
Excess of Revenues
Over Expenditures 185,731 185,731 195,441 9,710
OTHER FINANCING SOURCES (USES)
Transfers in 50,755 50,755
Transfers out (291,256) (291,256) (289,821) 1,435
Total Other Financing Sources (Uses) (291,256) (240,501) (239,066) 1,435
Net Change in Fund Balance (105,525) (54,770) (43,625) 11,145
Fund Balance, Beginning of Year 72,750 72,750 72,750
Fund Balance, End of Year $ (32,775) $ 17,980 $ 29,125 $ 11,145
79
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
REVENUES
Taxes $ 375,000 $ 375,000 $ 450,639 $ 75,639
Use of money and property 52,300 52,300 46,159 (6,141)
Total Revenues 427,300 427,300 496,798 69,498
EXPENDITURES
Current:
Public works 393,240 393,240 348,708 44,532
Excess (Deficiency) of Revenues
Over Expenditures 34,060 34,060 148,090 114,030
OTHER FINANCING SOURCES (USES)
Transfers out (72,200) (122,955) (113,194) 9,761
Net Change in Fund Balance (38,140) (88,895) 34,896 123,791
Fund Balance, Beginning of Year 1,459,698 1,459,698 1,459,698
Fund Balance, End of Year $ 1,421,558 $ 1,370,803 $ 1,494,594 $ 123,791
80
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JPIA - PORTUGUESE BEND SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Use of money and property
EXPENDITURES
Current:
Public works
Excess (Deficiency) of Revenues
Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Budgeted Amounts Actual
Original Final Amounts
$ 7,300 $ 7,300 $ 15,070
93,300 141,500 81,202
(86,000) (134,200) (66,132)
Variance with
Final Budget -
Positive
(Negative)
$ 7,770
60,298
68,068
91,500 91,500 91,500
5,500 (42,700) 25,368 68,068
255,828 255,828 255,828
$ 261,328 $ 213,128 $ 281,196 $ 68,068
81
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 1,600 $ 1,600 $ 8,233 $ 6,633
Revenue from other agencies 83,162 83,162
Total Revenues 1,600 84,762 91,395 6,633
EXPENDITURES
Capital outlay 101,500 322,229 229,956 92,273
Excess (Deficiency) of Revenues
Over Expenditures (99,900) (237,467) (138,561) 98,906
OTHER FINANCING SOURCES
Transfers in 76,752 76,752 76,752
Net Change in Fund Balance (23,148) (160,715) (61,809) 98,906
Fund Balance, Beginning of Year 298,362 298,362 298,362
Fund Balance, End of Year $ 275,214 $ 137,647 $ 236,553 $ 98,906
82
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, 2007
REVENUES
Use of money and property
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
$ 23,400 $ 23,400 $ 21,675 $ (1,725)
EXPENDITURES
Current:
Public works 50,000 52,000 51,285 715
Excess (Deficiency) of Revenues
Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
(26,600) (28,600)
(29,610) (1,010)
57,000
(26,600) (28,600) 27,390 55,990
727,179 727,179 727,179
$ 700,579 $ 698,579 $ 754,569 $ 55,990
83
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PARKS/MEASURE A SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Use of money and property
Revenue from other agencies
Total Revenues
OTHER FINANCING SOURCES (USES)
Transfers out
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
$ 1,400 $ 1,400 $ 1,743 $ 343
65,000 493,009 754,345 261,336
66,400 494,409 756,088 261,679
(43,500) (476,502) (432,494) 44,008
22,900 17,907 323,594 305,687
(255,638) (255,638) (255,638)
$ (232,738) $ (237,731) $ 67,956 $ 305,687
84
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 40,000 $ 40,000 $ 43,009 $ 3,009
Use of money and property 400 400 1,758 1,358
Total Revenues
40,400 40,400 44,767 4,367
EXPENDITURES
Current:
Public works 49,900 50,141 50,091 50
Excess (Deficiency) of Revenues
Over Expenditures
(9,500) (9,741) (5,324)
4,417
OTHER FINANCING SOURCES (USES)
Transfers in 10,700 10,700 10,700
Net Change in Fund Balance 1,200 959 5,376 4,417
Fund Balance, Beginning of Year 48,819 48,819 48,819
Fund Balance, End of Year $ 50,019 $ 49,778 $ 54,195 $ 4,417
85
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RPV TV CHANNEL 33 SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Use of money and property
EXPENDITURES
Current:
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 5,145 $ 5,145 $ 3,959 $ (1,186)
Administration 35,700 63,558 56,810 6,748
Total Expenditures 35,700 63,558 56,810 6,748
Excess (Deficiency) of Revenues
Over Expenditures (30,555) (58,413) (52,851) 5,562
OTHER FINANCING SOURCES (USES)
Transfers in 30,700 84,725 84,725
Net Change in Fund Balance 145 26,312 31,874 5,562
Fund Balance, Beginning of Year 2,451 2,451 2,451
Fund Balance, End of Year $ 2,596 $ 28,763 $ 34,325 $ 5,562
86
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 1,123 $ 1,123
Revenue from other agencies $ 25,000 $ 25,000 69,201 44,201
Total Revenues 25,000 25,000 70,324 45,324
OTHER FINANCING USES
Transfers out (25,000) (50,554) (50,554)
Net Change in Fund Balance (25,554) 19,770 45,324
Fund Balance, Beginning of Year 25,833 25,833 25,833
Fund Balance, End of Year $ 25,833 $ 279 $ 45,603 $ 45,324
87
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RDA ABALONE COVE CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
REVENUES
Use of money and property $ 230 $ 230 $ 286 $ 56
Net Change in Fund Balance 230 230 286 56
Fund Balance, Beginning of Year 5,409 5,409 5,409
Fund Balance, End of Year $ 5,639 $ 5,639 $ 5,695 $ 56
88
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 103,860 $ 103,860 $ 41,488 $ (62,372)
Net Change in Fund Balance 103,860 103,860 41,488 (62,372)
Fund Balance, Beginning of Year 225,189 225,189 225,189
Fund Balance, End of Year $ 329,049 $ 329,049 $ 266,677 $ (62,372)
89
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 13,400 $ 13,400 $ 5,925 $ (7,475)
Net Change in Fund Balance 13,400 13,400 5,925 (7,475)
Fund Balance, Beginning of Year 17,841 17,841 17,841
Fund Balance, End of Year $ 31,241 $ 31,241 $ 23,766 $ (7,475)
90
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 60,900 $ 60,900 $ 32,912 $ (27,988)
EXPENDITURES
Capital outlay
1,000,000
Total Expenditures 1,000,000
Excess (Deficiency) of Revenues
Over Expenditures
Fund Balance, Beginning of Year
(939,100) 60,900 32,912 (27,988)
1,077,383 1,077,383 1,077,383
Fund Balance, End of Year $ 138,283 $ 1,138,283 $ 1,110,295 $ (27,988)
91
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RDA PORTUGUESE BEND CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2007
REVENUES
Use of money and property
Other revenues
Total Revenues
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
$ 8,500 $ 8,500 $ 21,099 $ 12,599
50,004 50,004
8,500 8,500 71,103 62,603
EXPENDITURES
Current:
Public works 25,300 25,300 18,895 6,405
Net Change in Fund Balance (16,800) (16,800) 52,208 69,008
Fund Balance, Beginning of Year 391,174 391,174 391,174
Fund Balance, End of Year $ 374,374 $ 374,374 $ 443,382 $ 69,008
92
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 7,400 $ 7,400 $ 7,661 $ 261
Net Change in Fund Balances 7,400 7,400 7,661 261
Fund Balance, Beginning of Year 250,836 250,836 250,836
Fund Balance, End of Year $ 258,236 $ 258,236 $ 258,497 $ 261
93
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, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
REVENUES
Use of money and property $ 2,300 $ 2,300 $ 6,246 $ 3,946
Net Change in Fund Balances 2,300 2,300 6,246 3,946
Fund Balance, Beginning of Year 89,643 89,643 89,643
Fund Balance, End of Year $ 91,943 $ 91,943 $ 95,889 $ 3,946
94
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JPIA - ABALONE COVE PERMANENT FUND
FOR THE YEAR ENDED JUNE 30, 2007
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Ainounts (Negative)
REVENUES
Use of money and property $ 38,100 $ 38,100 $ 71,570 $ 33,470
EXPENDITURES
Current:
Public works 111,768 115,737 85,713 30,024
Net Change in Fund Balance (73,668) (77,637) (14,143) 63,494
Fund Balance, Beginning of Year 1,403,950 1,403,950 1,403,950
Fund Balance, End of Year $ 1,330,282 $ 1,326,313 $ 1,389,807 $ 63,494
95
CITY OF RANCHO PALOS VERDES
JUNE 30, 2007
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 on behalf of all City departments.
96
CITY OF RANCHO PALOS VERDES
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
JUNE 30, 2007
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
$ 3,011,802 $ 1,645,191 $ 681,558 $ 5,338,551
26,588 14,304 5,411 46,303
123,134 123,134
3,038,390 1,659,495
810,103 5,507,988
1,262,556 1,262,556
(898,662) (898,662)
363,894 363,894
3,402,284 1,659,495 810,103 5,871,882
31,950
207,585 127,411
NET ASSETS
Invested in capital assets 363,894
Unrestricted 3,006,440 1,451,910 682,692
366,946
363,894
5,141,042
Total Net Assets $ 3,370,334 $ 1,451,910 $ 682,692 $ 5,504,936
97
CITY OF RANCHO PALOS VERDES
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2007
Equipment Building Employee
Replacement Replacement Benefits
Totals
OPERATING REVENUES
Charges for services $ 435,513 $ 1,478,380 $ 1,913,893
Total Operating Revenues 435,513 1,478,380 1,913,893
OPERATING EXPENSES
Personnel services 1,269,938 1,269,938
Material and supplies 105,683 105,683
Maintenance 47,732 335,677 383,409
Depreciation 189,578 189,578
Total Operating Expenses 342,993 335,677 1,269,938 1,948,608
Operating Income (Loss) 92,520 (335,677) 208,442 (34,715)
NONOPERATING REVENUES
Interest income 87,680 48,585 9,470 145,735
Revenue from other agencies 59,265 59,265
Gain (Loss) on Asset Disposal
Total Operating Expenses 87,680 107,850 9,470 205,000
Income (Loss) Before
Transfers 180,200 (227,827) 217,912 170,285
Operating Transfers
TRANSFERS IN 100,000 100,000
Change in Net Assets 180,200 (127,827) 217,912 270,285
Net Assets, Beginning of Year 3,190,134 1,579,737 464,780 5,234,651
Net Assets, Ending of Year $ 3,370,334 $ 1,451,910 $ 682,692 $ 5,504,936
98
CITY OF RANCHO PALOS VERDES
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Internal activity - payments from other funds
Payments to suppliers
NET CASH PROVIDED (USED) BY
Equipment Building Employee
Replacement Replacement Benefits
Totals
$ 435,513 $ 1,478,380 $ 1,913,893
(205,616) $ (166,467) (1,288,874) (1,660,957)
OPERATING ACTIVITIES 229,897 (166,467) 189,506 252,936
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition of capital assets
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental Revenue
Transfers in
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
hnterest received on investments
NET INCREASE IN CASH
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, Beginning of Year
(204,571) (204,571)
59,265
100,000
159,265
59,265
100,000
159,265
91,622 51,660 8,135 151,417
116,948 44,458 197,641 359,047
2,894,854 1,600,733 483,917 4,979,504
CASH AND CASH EQUIVALENTS, End of Year $ 3,011,802 $ 1,645,191 $ 681,558 $ 5,338,551
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating income (loss) $ 92,520 $ (335,677) $ 208,442 $ (34,715)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation 189,578 189,578
Decrease in prepaid items (123,134) (123,134)
hncrease (decrease) in accrued liabilities (52,201) 169,210 104,198 221,207
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
99
$ 229,897 $ (166,467) $ 189,506 $ 252,936
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 peiformance 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 peiforms.
100
106
111
114
116
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
98
City of Rancho Palos Verdes
Net Assets by Component
Last Six Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007
Governmental activities
Invested in capital assets, net of related debt $ 93,636 $ 94,895 $ 92,499 $ 94,023 $ 109,991 $ 109,746
Restricted 10,327 10,661 11,586 12,075 12,417 12,163
Unrestricted 13,666 13,004 14,271 15,659 16,024 17,823
Total governmental activities net assets $117,629 $118,560 $118,356 $121,757 $138,432 $139,732
Business -type activities
Invested in capital assets, net of related debt $ 1,311 $ 2,158
Restricted
Unrestricted $ 2,000 2,799 5,258
Total business -type activities net assets $ 2,000 $ 4,110 $ 7,416
Primary government
Invested in capital assets, net of related debt $ 93,636 $ 94,895 $ 92,499 $ 94,023 $ 111,302 $ 111,904
Restricted 10,327 10,661 11,586 12,075 12,417 12,163
Unrestricted 13,666 13,004 14,271 17,659 18,823 23,081
Total primary government net assets $ 117,629 $ 118,560 $ 118,356 $ 123,757 $ 142,542 $ 147,148
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.
100
City of Rancho Palos Verdes
Changes in Net Assets
Last Six Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007
Expenses
Governmental activities:
Administration $ 3,069 $ 3,294 $ 3,499 $ 4,055 $ 4,350 $ 4,953
Public safety 2,898 3,094 3,024 3,079 3,437 3,751
Public works 7,283 7,954 7,462 9,488 9,290 9,969
Parks and recreation 687 809 948 1,065 1,659 1,439
Planning, building and code enforcement 1,916 2,170 2,296 2,223 2,060 2,631
Interest on long-term debt 273 273 273 272 270 271
Total governmental activities expenses 16,126 17,594 17,502 20,182 21,066 23,014
Business -type activities:
Water Quality Flood Protection 47 271
Total primary government expenses $16,126 $ 17,594 $ 17,502 $ 20,182 $21,113 $ 23,285
Program Revenues
Governmental activities:
Charges for services:
Administration $ 157 $ 87 $ 69 $ 62 $ 35 $ 29
Public safety 433 235 165 163 224 332
Public works 78 252 217 131 37 185
Parks and recreation 10 8 6 41 45 51
Planning, building and code enforcement 979 1,202 1,363 1,188 1,319 1,599
Operating grants and contributions 6,877 2,971 2,836 2,728 3,894 4,200
Capital grants and contributions 706 131 37 4,524 17,299 317
Total governmental activities program revenues 9,240 4,886 4,693 8,837 22,853 6,713
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
Net (expense)/revenue
Governmental activities $ (6,886) $(12,708) $(12,809) $(11,345) $ 1,787 $(16,301)
Business -type activities - - (47) (270)
Total primary government net expense $ (6,886) $(12,708) $(12,809) $(11,345) $ 1,740 $(16,571)
101
City of Rancho Palos Verdes
Changes in Net Assets
Last Six Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes
Franchise taxes
Sales taxes
Utility user taxes
Other taxes
Investment income
Other
Transfers
Total governmental activities
Business -type activities:
Investment income
User Fees
Other
Transfers
Total business -type activities
Total primary government
Change in Net Assets
Governmental activities
Business -type activities
Total primary government net expense
2002 2003
Fiscal Year
2004 2005
$ 5,253 $ 5,335 $ 5,706 $ 5,840
1,139 1,087 1,275 1,307
1,093 1,003 1,205 1,276
1,812 1,832 1,851 1,901
2,744 3,495 2,867 4,545
814 371 331 594
(67) 517 2,481 1,283
(2,000)
12,788 13,640 15,716 14,746
$12,788 $ 13,640 $ 15,716
$ 5,902 $ 932 $ 2,907
$ 5,902 $ 932
$ 2,907
2,000
2,000
$ 16,746
$ 3,401
2,000
$ 5,401
2006
$ 9,621
1,454
1,214
2,191
727
997
793
(2,109)
14,888
48
2,109
2,157
$ 17,045
$ 16,675
2,110
$ 18,785
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.
102
2007
$ 10,235
1,512
1,381
2,271
363
1,615
2,101
(2,017)
17,461
51
1,188
320
2,017
3,576
$ 21,037
$ 1,160
3,306
$ 4,466
City of Rancho Palos Verdes
Governmental Activities Tax Revenues By Source
Last Six 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
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.
103
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
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
General fund
Reserved $ 5,231 $ 6,050 $ 6,367 $ 6,317 $ 6,571 $ 6,854 $ 6,639 $ 6,021 $ 6,165 $ 6,586
Designated 675 876 786
Unreserved, undesignated 3,918 5,701 6,791 7,043 7,234 9,607 14,066 14,209 13,649 14,376
Total general fund $ 9,149 $11,751 $13,158 $13,360 $13,805 $16,461 $ 20,705 $ 20,905 $ 20,690 $ 21,748
All other governmental funds
Reserved $ 1,966 $ 2,019 $ 3,922 $ 3,406 $11,256 $ 7,584 $ 7,229 $ 3,147 $ 3,315 $ 2,396
Designated
Special revenue funds 615 744 1,849
Capital projects funds 12,079 12,175 12,163 10,472 2,416 2,799 3,158
Permanent fund 75 65
Debt service fund
Unreserved, undesignated, reported in:
Special revenue funds 4,629 4,768 4,283 4,697 4,753 5,012 5,040 5,902 6,615 6,426
Capital projects funds 332 1 534 2,430 3,320 2,077 1,869
Permanent fund 443 2 460 418 426 329 325
Debt service fund (10,477) 3 (10,915) (12,070) (12,793) (13,741) (14,873)
Total all other governmental funds $ 18,674 $ 18,962 $ 20,368 $ 18,575 $ 6,307 $ 2,675 $ 3,047 $ 3,033 $ 2,213 $ 1,215
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.
104
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
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Revenues
Taxes $ 8,922 $ 9,002 $ 9,530 $ 10,309 $ 10,677 $ 11,046 $ 12,081 $ 13,573 $ 15,238 $ 16,453
Licenses and permits 890 1,292 1,090 1,164 1,245 1,463 1,310 1,326 1,440 1,763
Fines and forfeitures 115 140 157 139 117 115 102 108 171 237
Use of money and property 1,701 1,555 1,704 1,971 1,153 804 733 1,306 7,038 3,480
Charges for services 176 218 203 197 217 205 379 152 49 61
Revenues from other agencies 4,900 4,341 3,655 4,816 8,170 4,318 3,453 7,848 15,511 4,118
Other revenues 649 687 2,137 882 563 554 2,363 1,038 155 201
Total Revenues 17,353 17,235 18,476 19,478 22,142 18,505 20,421 25,351 39,602 26,313
Expenditures
Administration 1,669 1,689 1,846 3,052 2,915 3,092 3,328 3,852 4,041 4,607
Public Safety 2,533 2,658 2,662 2,733 2,898 3,094 3,039 3,092 3,438 3,751
Public Works 4,143 4,156 5,552 4,972 7,449 5,292 4,801 6,302 5,277 6,864
Parks and recreation 711 633 597 596 669 786 946 965 1,593 1,319
Planning, building and code enforcement 1,559 1,882 1,647 1,778 1,950 2,194 2,362 2,302 2,361 2,681
Pass through to other agencies 79 78 85 91 102 137 156 188 200 152
Capital outlay 4,333 3,504 2,157 7,015 8,246 3,893 368 4,912 20,202 3,124
Debt service
Principal 10,000 184 200 248
Interest 638 893 985 1,128 930 836 805 905 1,150 1,390
Total expenditures 25,665 15,493 15,531 21,365 25,159 19,324 15,805 22,702 38,462 24,136
Excess of revenues over (under) expenditures (8,312) 1,742 2,945 (1,887) (3,017) (819) 4,616 2,649 1,140 2,177
Other financing sources (uses)
Transfers in 10,358 2,593 3,687 5,013 4,294 1,676 1,844 6,180 4,989 4,489
Transfers out (10,463) (2,593) (4,469) (5,165) (4,877) (1,833) (1,844) (8,180) (7,247) (6,606)
Bond Proceeds 5,455
Advances to the Redevelopment Agency 2,246 1,301 982 855
Total other financing sources (uses) 7,596 1,301 200 703 (583) (157) (2,000) (2,258) (2,117)
Net change in fund balances $ (716) $ 3,043 $ 3,145 $ (1,184) $ (3,600) $ (976) $ 4,616 $ 649 $ (1,118) $ 60
Cost of assets capitalized
Debt services as a percentage of noncapital expenditures
11,047 4,184 379 4,623 19,465 2,800
6.6% 5.5% 5.2% 6.0% 7.1% 7.7%
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.
105
City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Eight 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
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.
106
Fiscal
Year Residential
End Property
2005 * $ 6,530,448
2006 * 7,034,406
2007 7,548,956
City of Rancho Palos Verdes
Assessed Value and Estimated Actual Value of Taxable Property
Last Three Fiscal Years
(in thousands of dollars)
Less
Commercial Industrial Other Unsecured Tax -Exempt
Property Property Property Property Property
$ 76,445 $ 1,691 $ 317,463 $ 22,222 $ 218,193
88,691 3,086 365,175 21,561 218,916
111,338 3,148 513,876 20,378 226,598
Taxable
Assessed
Value
$ 6,730,076
7,294,003
7,971,098
Total Estimated
Direct Actual
Tax Taxable
Rate (1) Value (2)
$ 0.064 $ 8,956,722
0.064 $ 9,707,224
0.064 $ 10,608,336
Factor of
Taxable
Assessed Value (3)
1.33085
1.33085
1.33085
Source: County Assessor data, MuniServices, LLC
2006-07 County Auditor/Controller data, MuniServices, LLC
*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) Total Direct Tax Rate is represented by Tax Rare Area 001-224
(2) 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.
(3) The Factor used to calculate Estimated Actual Value was calculated for 2006-07 and applied to prior years for historical purposes.
This value will change in future years depending on market trends.
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and is therefore unavailable.
107
Fiscal General
Year Levy
2005 $ 1.00000
2006 1.00000
2007 1.00000
Los Angeles
County
$ 0.00092
0.00080
0.00066
City of Rancho Palos Verdes
Property Tax Rates
Direct and Overlapping Governments
Last Three Fiscal Years
Flood
Control
District
$ 0.00025
0.00005
0.00005
Metropolitan
Water
District
Library
District
$ 0.00580 $ 0.00852
0.00520 0.00781
0.00470 0.00731
Community
College
District
$ 0.01810
0.01429
0.02146
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls, MuniServices LLC
Note: Tax rates are per $100 of assessed value.
Tax Rate Area 001-224
School
Districts
$ 0.10366
0.10370
0.10681
Total Direct
& Overlapping
Rates
$ 1.13724
1.13184
1.14100
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and is therefore
unavailable.
108
Taxpayer
Long Point Development LLC
VRPV LLC
V H Property Corp
P V Victoria Apartments LLC
Rahn Patricia J Et Al
Western Riviera Investors Et A
Ppc Palos Verdes LLC
Belmont Village RPV LP
Johnson Eric C Co Tr
VHPS LLC
RPV Associates
American Golf Inc.
General Life Connecticut
Theodore Gardner
Terraces Partners LP
Cox Cable Communications
CA Water Service Company
Totals
City of Rancho Palos Verdes
Principal Property Taxpayers
Current Year
(amounts expressed in thousands)
2007
Assessed
Value Rank
$ 96,914 1
53,181 2
50,747 3
44,117 4
33,200 5
26,858 6
24,535 7
21,000 8
17,977 9
15,130 10
$ 383,659
Percentage of
Total Assessed
Value
1.22%
0.67%
0.64%
0.55%
0.42%
0.34%
0.31%
0.26%
0.23%
0.19%
4.81%
Source: MuniServices LLC, Los Angeles County Assessor Combined Tax Rolls
109
1998
Assessed
Value Rank
$ 22,524 2
34,637 1
22,474 3
15,470 4
12,278 5
11,844 6
11,811 7
11,480 8
10,928 9
10,224 10
$ 79,635
Percentage of
Total Assessed
Value
0.49%
0.76%
0.49%
0.34%
0.27%
0.26%
0.26%
0.25%
0.24%
0.22%
3.58%
Total Tax
Fiscal Levy for
Year Fiscal Year
2005 $ 4,284
2006 4,643
2007 5,078
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Three 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%
Source: County Assessor Data and City general ledger
Collections in
Subsequent Years
$ 144
36
Total Collections to Date
Percentage
Amount of Levy
$ 4,145 96.76%
$ 4,542 97.83%
$ 4,799 94.51%
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and
is therefore unavailable.
110
Fiscal
Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
City of Rancho Palos Verdes
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
RDA
Tax Increment
Bond
$ 5,455
5,455
5,455
5,455
5,455
5,455
5,455
5,450
5,435
5,410
Governmental Activities
RDA
Deferred Interest
Payable
$ 3,111
3,111
3,111
3,111
3,111
3,111
3,111
2,469
2,284
2,061
Employee
Compensated
Absences
$ 125
136
135
134
163
191
194
221
231
240
111
Total
Primary
Government
$ 8,691
8,702
8,701
8,700
8,729
8,757
8,760
8,140
7,950
7,711
Percentage
of Personal Per
Income Capita
0.29% $ 199.07
0.29% 196.23
0.43% 193.64
0.47% 211.45
0.46% 207.82
0.46% 206.91
0.45% 204.63
0.41% 187.02
0.41% 184.92
0.40% 178.94
City of Rancho Palos Verdes
Direct and Overlapping Governmental Activities Debt
Current Year
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
Los Angeles County Flood Control District
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
Los Angeles County Regional Park and Open Space Assessment 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
6/30/2007
$113,560,000
359,115,000
1,005,200,000
6,504,880,000
70,980,681
0
9,845,000
304,235,000
$1,084,851,959
546,849,147
19,817,270
64,943,439
11,065,017
395,744,823
'% Applicable (1)
1.02%
0.492
1.762
0.22
46.798
100
49.483
0.984
0.98%
0.984
0.984
10.87
4.728
0.22
City's Share of
Debt 6/30/07
$1,158,312
1,766,846
17, 711,624
14,310,736
33,217,539
0
4,871,601
2.993.672
$76,030,330
$10,674,943
5,380,996
195,002
7,059,352
523,154
870.639
$24,704,086
27.178
$24,676,908
$100,734,416 (2)
$100,707,238
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease
obligations.
2006-07 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
Ratios to 2006-07 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
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/07:
$8,065,914,966
82.951.850
$7,982,963,116
0.00%
0.94%
1.26%
1.26%
$1,299
Source: MuniServices LLC, L.A. Acounty Assessor and Audiotr Combined 2006/07 Lien Date Tax Rolls
112
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Debt limit $ 652,585 $ 691,696 $ 759,196 $ 804,357 $ 855,291 $ 902,133 $ 962,539 $ 1,021,177 $1,105,647 $ 1,195,665
Total net debt applicable to limit - - - - - -
Legal debt margin $ 652,585 $ 691,696 $ 759,196 $ 804,357 $ 855,291 $ 902,133 $ 962,539 $ 1,021,177 $1,105,647 $ 1,195,665
Total net debt applicable to the
limit as a percentage of debt limit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Total taxable value (see page 105) $ 7,971,098
Debt limit (15% of total taxable value)
Debt applicable to limit
Legal debt margin
113
1,195, 665
$ 1,195,665
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
1998 43,657 $ 2,948,856 $ 67,546 ' DNA DNA DNA DNA
1999 44,345 2,995,327 67,546 DNA DNA DNA DNA
2000 44,933 2,080,128 46,294 2 44.7 2 DNA DNA DNA
2001 41,145 1,904,767 46,294 44.7 DNA DNA DNA
2002 42,002 1,944,441 46,294 44.7 DNA DNA DNA
2003 42,322 1,959,255 46,294 44.7 DNA DNA DNA
2004 42,810 1,981,846 46,294 44.7 DNA DNA DNA
2005 43,525 2,014,946 46,294 44.7 DNA DNA DNA
2006 42,991 1,990,225 46,294 44.7 DNA DNA 5.7%
2007 43,092 2,411,687 3 55,966 3 44.7 DNA 12,030 4 1.5%
5
5
Source: 2006-07, MuniServices LLC
Population Projections and the Unemployment Rate are provided by California Department of Finance Projections and the California EDD.
1. Data available with the 1990 U.S. Census.
2. Data available with the 2000 U.S. Census. The data will not be updated until 2010
3. Income Data is provided by American Community Survey Data adjusted for inflation.
4. Public School Enrollment provided by the California Dept of Education, and represent the Palos Verdes Peninsula Unified School District.
5. Unemployment rate obtained from Sperling's Best Places (an Internet data service)
DNA: Data not available
Source: 2005-06 and prior, previously published CAFR Report
114
City of Rancho Palos Verdes
Principal Employers
Current Year
Employer
Palos Verdes Peninsula Unified School District (1)
Marymount College
Keller Williams Realty
Belmontcorp Ltd
American Golf Corp
Bally Total Fitness Corp
Salvation Army
Remax Palo Verdes Realty
Pie Rise Ltd
Remax Execs
Employees
2,000
170
112
97
60
50
43
37
30
29
Rank
1
2
3
4
5
6
7
8
9
10
Percentage
of Total City
Employment
9.09%
0.77%
0.51%
0.44%
0.27%
0.23%
0.20%
0.17%
0.14%
0.13%
2,628 11.95%
Total City Employment (2) 22,000
Source: MuniServices LLC, 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.
115
City of Rancho Palos Verdes
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Full-time Equivalent Employees as of June 30
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Function
General government 39 41 41 41 42 45 45 45 47 50
Recreation part-time 10 10 10 10 10 10 10 10 10 10
Total 49 51 51 51 52 55 55 55 57 60
Source: City budget documents and payroll records
116
City of Rancho Palos Verdes
Operating Indicators by Function
Last Six Fiscal Years
Fiscal Year
2002 2003 2004 2005 2006 2007
Function
Administration
Employee Resignations 4 - 5 4 4 4
Workers compensation claims 3 2 2 3 4 2
Liability claims 14 14 14 18 31 14
Budget Adjustments 35 30 27 36 48 32
Business licenses issued 1,600 1,961 2,102 1,909 1,801 1,837
Web site page views 88,888 119,104 133,481 224,777 1.3 mil 1.6 mil
Public Safety
Part! crime rates (per 10,000 population) 138 122 122 101 120 117
Public Works
Solid waste diversion rates 51% 57% 61% 59% 55% DNA
Pavement rating 80 80 89 89 82 DNA
Recreation and Parks
Park events 1,022 915 825 780 937 770
Class meetings at parks 1,774 2,134 2,935 2,893 2,856 2,647
Docent led nature hikes 54 45 80 65 62 98
Planning, Building and Code Enforcement
Building permits processed 1,264 1,327 1,399 1,233 1,382 1,244
Plan checks 121 150 186 208 163 164
Municipal code violations closed 138 203 214 180 159 162
Source: City departments
DNA: Data not available
The information presented in this table was not collected by the City prior to Fiscal Year 2002.
117
City of Rancho Palos Verdes
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Function
Administration
Computer workstations DNA DNA DNA DNA DNA DNA DNA 81 81 85
Public safety'
Public works
Street miles 143 143 143 143 143 143 143 143 143 143
Traffic signals 11 12 13 13 14 15 15 15 15 15
Parks and recreation
Parks 13 13 13 14 15 15 15 15 16 16
Planning, building and code enforcement
Vehicles used for inspections DNA DNA DNA 3 3 3 3 3 3 3
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.
118