CAFR FY 2008-09COMPREHENSIVEANNUAL FINANCIAL REPORT FISCAL YEAR ENDED
-."\- . JUNE 30, 2009
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CITY OF RANCHO PALOS VERDES,
CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2009
Prepared By:
Finance & Information Technology Department
Dennis McLean, Director
Kathryn Downs, Deputy Director
Cover photo provides a view of the Rancho Palos Verdes shoreline and Trump National Golf Course
INTRODUCTORY SECTION
Marilyn Ryan Sunset Point Park
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2009
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents
Letter of Transmittal iv -x
Directory of City Officials A
Organization Chart xii
GFOA Certificate of Achievement for Excellence in Financial Reporting xiii
FINANCIAL SECTION:
Independent Auditor's Report 3
Management Discussion and Analysis 7
Government -Wide Financial Statements
Statement of Net Assets 19
Statement of Activities 20
Fund Financial Statements
Governmental Funds
Balance Sheet
24
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
27
Statement of Revenues, Expenditures, and Changes in Fund Balances
28
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities
30
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual
31
Street Maintenance Special Revenue Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
- Budget and Actual
32
Proprietary Funds
Statement of Net Assets
33
Statement of Revenues, Expenses, and Changes in Fund Net Assets
34
Statement of Cash Flows
35
Notes to the Financial Statements 38
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2009
TABLE OF CONTENTS
Supplementary Information
Major Fund Budgetary Comparison Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual
RDA Debt Service Fund 68
Capital Improvements Capital Projects Fund 69
Non -Major Governmental Funds
Combining Balance Sheet
74
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances
80
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Special Revenue Funds
Air Quality Management Fund
86
Community Development Block Grant Fund
87
EI Prado Fund
88
RDA Housing Set -Aside Fund
89
Proposition A Fund
90
Proposition C Fund
91
Beautification Fund
92
Waste Reduction Fund
93
Public Safety Grants Fund
94
1972 Act Fund
95
1911 Act Fund
96
JPIA — Portuguese Bend Fund
97
Habitat Restoration Fund
98
Subregion One Maintenance Fund
99
Measure A Fund
100
Abalone Cove Sewer Assessment District
101
Rancho Palos Verdes TV Channel
102
Dr. Allen and Charlotte Ginsburg Cultural Arts Building
103
Donor Restricted Contributions
104
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Capital Projects Funds
Bikeways Fund
105
RDA Abalone Cove Fund
106
Environmental Excise Tax Fund
107
Quimby Fund
108
Affordable Housing Fund
109
RDA Portuguese Bend Fund
110
Utility Undergrounding Fund
111
Roadway Beautification Fund
112
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2009
TABLE OF CONTENTS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual — Permanent Fund
JPIA —Abalone Cove Fund 113
Internal Service Funds
Combining Statement of Net Assets 116
Combining Statement of Revenues, Expenses, and Changes
in Fund Net Assets 117
Combining Statement of Cash Flows 118
STATISTICAL SECTION (Unaudited)
Financial Trends
Net Assets by Component
120
Changes in Net Assets
121
Governmental Activities Tax Revenue By Source
123
Fund Balances of Governmental Funds
124
Changes in Fund Balances of Governmental Funds
125
General Governmental Tax Revenues By Source
126
Revenue Capacity
Assessed Value and Estimated Actual Value of Tax Property
127
Property Tax Rates - Direct and Overlapping Governments
128
Principal Property Taxpayers
129
Property Tax Levies and Collections
130
Debt Capacity
Ratios of Outstanding Debt by Type
131
Direct and Overlapping Governmental Activities Debt
132
Legal Debt Margin Information
133
Demographic and Economic Information
Demographic and Economic Statistics
134
Principal Employers
135
Operating Information
Full-time Equivalent City Government Employees by Function
136
Operating Indicators by Function
137
Capital Asset Statistics by Function
138
N
CITY O RANCHO PALOS VERDES
December 18, 2009
Honorable Mayor and City Council
City of Rancho Palos Verdes
Rancho Palos Verdes, California
The Comprehensive Annual Financial Report (CAFR) of the City of Rancho Palos Verdes for the fiscal year ended
June 30, 2009, is hereby submitted as mandated by both local ordinances and state statutes. These ordinances and
statutes require that the City of Rancho Palos Verdes issue annually a report on its financial position and activity, and
that an independent firm of certified public accountants audit this report. Responsibility for both the accuracy of the
data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best
of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that
presents fairly the financial position and results of operations of the various funds and component units of the City of
Rancho Palos Verdes. In addition, to the best of our knowledge, there are no untrue statements of material fact
within the financial statements or omissions of material fact to cause the financial statements to be misleading. All
disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been
included.
The financial section of the CAFR includes management's discussion and analysis (MD&A). This letterof transmittal
is designed to complement the MD&A and should be read in conjunction with it.
The financial reporting entity (the government) includes all the funds of the primary government (i.e., the City of
Rancho Palos Verdes as legally defined), as well as its component units, the Rancho Palos Verdes Redevelopment
Agency and the Joint Powers Improvement Authority. A component unit is a legally separate entity for which the
primary government is financially accountable. The City provides a broad range of services, including police
protection, solid waste collection, construction and maintenance of streets and other infrastructure, planning and
zoning activities, recreational activities, cultural events, and general administrative services. The City of Rancho
Palos Verdes is a contract city, meaning that some of these services are provided by contract with other agencies
(both public and private) and some services are delivered by the City's own employees.
Special districts of the County of Los Angeles provide library services, fire protection services, and sewer services.
The City has excluded the County of Los Angeles, as well as the State of California and various school districts, from
the financial reporting entity because they do not meet the established criteria for inclusion.
GOVERNMENTAL STRUCTURE, ECONOMIC CONDITION AND OUTLOOK
The City of Rancho Palos Verdes is located on a coastal peninsula overlooking the Pacific Ocean in Los Angeles
County, 20 miles south of the City of Los Angeles. The City was incorporated September 7, 1973. The City currently
has a land area of 13.6 square miles and a population of about 43,000. The City is primarily a "bedroom" community
with relatively little commercial activity.
The City has operated under the council-manager form of government since incorporation. Policy-making and
legislative authority are vested in the governing council, which consists of five council members, including the mayor
and mayor pro -tem. The governing council is responsible, among other things, for passing ordinances, adopting the
budget, appointing committees and hiring the city manager and the city attorney. The city manager is responsible for
carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the
government, and for appointing the heads of the government's departments. The council is elected on a non-
partisan, at -large basis. Council members are elected to four-year staggered terms with two or three council
members elected every two years. The council designates the mayor and mayor pro -tem for a one-year term.
Though the General fund reserves of the City decreased during the fiscal year ended June 30, 2009, it is important to
continue to measure the City's financial strength overtime, notjuston the basis of the most recent three or four years
IV
experience. The economic downturn affecting revenue sources such as taxes and permits, as well as the need to
fund additional infrastructure renewal and maintenance will require continued conservative fiscal policies.
MAJOR INITIATIVES
The City's staff, following specific directives of the City Council and the City Manager, has been involved in a variety
of projects throughout the year. These projects reflect the government's commitment to ensuring that its citizens are
able to live and work in an enviable environment.
Planning, Building, and Code Enforcement
➢ The City together with the Palos Verdes Peninsula Land Conservancy continued management of the City's
Natural Communities Conservation Plan (NCCP) Preserve, developed a Preserve Trails Plan and continued its
effort for acquiring open space for inclusion into the habitat preserve.
➢ The City continued to formally monitor development projects in surrounding jurisdictions (referred to as "border
issues") to assess their potential impacts upon the City and its residents.
➢ The City continued to approve the installation of various commercial antenna facilities for cellular telephones and
personal communication systems on private property throughout the City.
➢ The City continued to take steps in updating its General Plan by working with a consulting team in the
preparation of various studies to support the General Plan Update. Staff is currently working with the consulting
team to complete specific studies and is in the process of presenting Draft General Plan Elements to the
Planning Commission and various advisory committees for initial review. Staff expects the General Plan Update
to be completed in 2010.
➢ The City continued to implement its Housing Element by approving the "Mirandela" 34 unit affordable housing
project on March 3, 2009. The project is a multi -family rental housing project that will be made available to
seniors 62 years and older that qualify under extremely -low, very -low, low and moderate incomes. The project
will be funded by a combination of sources, which include the City's In -lieu Affordable Housing Fund, the
Redevelopment Agency's 20% Affordable Housing Fund, and 9% Tax Credits awarded by the California Tax
Credit Allocation Committee. Grading on the project is expected to begin in November 2009. The project will be
completed in late 2010/early 2011.
➢ The City authorized a partnership with the Annenberg Foundation to improve Lower Point Vicente Park with the
construction of an animal education facility, outdoor exhibits and site improvements.
➢ The City approved anew, 28 -unit condominium project on the site of an abandoned former Verizon facility. The
project includes the provision of two (2) dwelling units that will be made affordable for sale to very -low-income
households.
➢ The City approved anew, 7,116 -square -foot commercial office building located on a vacant lot at the northwest
corner of Hawthorne Boulevard and Crest Road. The project includes subterranean and surface parking, on-site
signage and landscaping.
➢ The City adopted the Vision Plan, a coordinated master plan consisting of program, design and linkage concepts
for land located within the coastal region of the City. The Vision Plan was developed jointly by City Staff, the
PVPLC, and the Melendrez landscape architectural firm.
➢ The City worked closely with the Terranea Resort and Spa to complete the project and open for business on
June 12, 2009. Included in the opening are the hotel room accommodations, banquet and conference facilities,
restaurants and the spa and fitness center, and the 9 -hole golf course. Additionally, the City approved public
amenities that are now available for use.
➢ The City approved the construction of anew Trader Joe's Market and upgrades to the Golden Cove Center. The
approved project includes a new 11,000 square foot Trader Joe's grocery store building and restriping and
reconfiguring the existing parking lot to increase the overall number of parking spaces in the shopping center.
v
➢ The City approved a major revision to the existing St. John Fisher Church, which included a combined total of
32,426 square feet of new building area to the existing site composed of a new sanctuary (to replace the existing
sanctuary), a new administration building, a new two -classroom preschool, a new art room, and a new school
library.
Public Works
➢ The annual residential street overlay and slurry seal project was completed for the 2007-08 cycle.
➢ Voter approved storm drain user fees collected through the Water Quality and Flood Protection program were
used to continue the City's storm drain lining program for FY 08-09. Approximately $0.6 million of additional
lining was completed, thereby extending the life of the storm drain pipes. In addition, six storm drain outlets were
reconstructed at various locations throughout the Ctiy.
➢ The $7.4 million McCarrell Canyon storm drain project, which is a backbone project of the City's drainage
system, was substantially completed.
➢ The Palos Verdes Drive South emergency storm drain repair project was completed.
➢ Trail improvements were completed using Measure A grant monies from the County 4th Supervisorial District.
The projects included the Toyon Trail located in the Portuguese Nature Preserve and the Coolheights Trail Head
Improvement located in the Forrestal Nature Preserve.
➢ The City awarded $157,500 of beautification grants for local neighborhood beautification projects.
➢ Modifications were made to the lobby and conference room of the Planning Department to improve public
counter service and workspace areas. These improvements included anew service counter, workstations and a
conference room.
➢ Analysis of the City's sewer system and preparation of the Sewer System Management Plan was completed.
The plan was approved for adoption by the City Council.
➢ Graphic Information System (GIS) updates were completed for the City's infrastructure. The Sanitary Sewer
System GIS layerwas updated and included information of the City maintained Abalone Cove sewersystem. In
addition, the GIS infrastructure of the Storm Drain Master Plan was updated, which included information on the
storm drains, catch basins, invert, size, and type of material.
➢ Following the recommendations of the Los Angeles County Department of Agricultural Commissioner/Weights
and Measures and the Los Angeles County Fire Department, the City's annual fuel modification program began
brush clearance work in May of 2009 and will be completed in the 2009-2010 fiscal year. There were several fuel
modification zones identified throughout the City, and they are being addressed using goats, as well as
manpower, to complete the vegetation thinning.
➢ The City updated 95% of traffic engineering speed surveys for roadways and arterials.
➢ The City continued to improve neighborhood traffic safety by use of radar trailers and speed feedback signs as
an educational tool to motorists.
➢ The City completed the annual pavement striping update to improve traffic safety around schools and on streets
where striping is missing or faded.
➢ As part of the City's traffic calming program, speed humps were constructed in the Toscanini Street area to
address the speeding issue.
➢ Development of the Oversized Vehicle Parking Ordinance was completed and adopted by the City Council.
➢ The City's Neighborhood Permit Parking program was revised and adopted by City Council for implementation in
January 2010.
VI
➢ Annual right-of-way maintenance was completed for the Sidewalk and Bus Shelter programs. The Sidewalk
Program includes sidewalk grinding and sidewalk removal and replacement. Maintenance was completed on
multiple bus shelters throughout the City.
➢ The City began the process of procuring a new residential solid waste contract. Seven competitive proposals
were received in response to its Requests for Proposals. A contract is expected to be awarded in November
2009.
➢ The City continued to provide grants/loans to low and moderate income residents for minor repairs to their single
family homes through the Home Improvement Program (HIP). Funds are provided through the Community
Development Block Grant program, which is administered by the County for the federal Department of Housing
and Urban Development (HUD).
➢ The City received approximately $630,000 in Transportation Improvement Program funds for the construction of
a bike compatible lane along Palos Verdes Drive South between Narcissa Drive and Schooner Drive.
➢ The City received approximately $252,000 in Highway Safety Improvement Program funds for the redesign and
construction of new guardrails along Palos Verdes Drive East as an interim safety measure to the overall safety
improvement project of the entire Palos Verdes Drive East corridor.
➢ The City received approximately $212,000 in Highway Safety Improvement Program funds for the traffic signal
upgrade at Crenshaw Boulevard and Crestridge Road to improve turn movements and ADA access.
➢ The City completed its design of new landscaped medians along Palos Verdes Drive West and Hawthorne Blvd
marking this intersection as a focal entry -point into the City by way of beautifying the public rights of way.
Recreation and Parks
➢ Recreation and Parks Staff continued to operate the Point Vicente Interpretive Center which attracts
approximately 40,000 visitors touring the museum annually.
➢ Recreation and Parks Staff also continued to operate the Point Vicente Interpretive Center's nature and sea -
themed gift shop and to facilitate rentals of the facility for private parties and weddings.
➢ 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 theiroperation of temporary
offices and a classroom using modular trailers at Upper Point Vicente Park. The City also continued to offer the
Peninsula Seniors the use of other park facilities for various events.
➢ Recreation and Parks Staff coordinated the City's annual July 4th Independence Day celebration.
➢ Recreation and Parks Staff continued to coordinate numerous annual and one-time community events including
the Abalone Cove Beach Clean -Up Day and Breakfast with Santa.
➢ Recreation and Parks Staff helped coordinate numerous special events including Shakespeare by the Sea's
production of "As You Like It," Las Candalistas' Walk on the Wild Side, the Rolling Hills Estates Kiwanis Club's
Palos Verdes Marathon, the American Diabetes Association's Tour de Cure bike ride, and the Honda Ride for
Kids.
➢ Through the City's Gifts for Parks program, Recreation Staff and Los Serenos de Point Vicente docents
continued to pursue donations for PVIC exhibits, the Fourth of July Celebration, Breakfastwith Santa and other
special events and programs.
V11
➢ 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
➢ Staff presented a status report to the City Council in August 2009 regarding implementation of the February 2008
Organization -Wide Management Assessment and reported that to date the City has successfully completed 49%
of the consultant's recommendations.
➢ Using grant funds, the City purchased a new Sheriffs patrol unit equipped with Automatic License Plate
Recognition technology to operate along and within the neighborhoods adjacent to Western Avenue and Palos
Verdes Drive East. Since its deployment in March 2009, the new technology has recorded 260,000 license
plates and assisted the Lomita Sheriffs Station in a total of 23 incidents.
➢ RPV TV continued to expand programming offered on the City's cable channel, RPV TV, including rebroadcasts
of the City Council and Planning Commission meetings, productions of a wide variety of local interest
programming and offering a Video Bulletin Board featuring local community events.
➢ The City implemented a Peafowl Management Program to address overpopulation issues in the Vista Grande
neighborhood. To date, the City has successfully trapped and relocated over 30 birds.
➢ The City Council conducted a Tactical Planning Workshop in March 2009 which identified the City's major
initiatives for the year.
➢ The City Council hosted the first Candidates Ethics Workshop for the seven candidates running for two vacant
City Council seats in November 2009.
➢ The City retained a highly -regarded consulting firm to assist the City with identifying and pursuing grant
opportunities, particularly in light of the American Recovery and Reinvestment Act. To date, the City has been
successful in securing $1.4 million in grant funding in 2009.
➢ The City hosted Community Leaders' Breakfasts in January and October 2009 providing updates on the
development of the Five Year Capital Improvement Program and the proposed Annenberg Project at Lower Point
Vicente Park, respectively.
➢ The update to the City's Cost Based Fee Study was completed and a new fee schedule was adopted by the City
Council in March 2009, thus aligning user fees with the cost of providing related services.
➢ The City implemented the new ADP payroll and human resources benefits system as an improvement to
efficiency and management effectiveness.
➢ City staff developed a Five Year Capital Improvement Plan to manage and plan for the City's infrastructure which
was adopted by the City Council in June 2009.
FINANCIAL INFORMATION
The Finance and Information Technology department of the City is responsible for establishing and maintaining an
appropriate internal control structure. The internal control system is designed to ensure that the assets of the City are
protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept
of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived;
and (2) the valuation of costs and benefits requires estimates and judgements by management.
Single Audit. As a recipient of federal, state, and county financial assistance, the City is responsible for ensuring that
an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to
those programs. This internal control structure is subject to periodic evaluation by management. In years when over
$500,000 is expended on Federal financial assistance programs, the City is required to undergo an annual single
audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget
VIII
Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. For the year ended June 30,
2009, only $441,072 was expended on Federal financial assistance programs; and therefore, a Single Audit is 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 Permanentfund are included
in the annual appropriated budgets of the government units. The level of budgetary control (that is, the level atwhich
expenditures cannot legally exceed the appropriated amount) is established at the department/function level within
each fund. Formal budgetary integration is employed as a management control device. The City also maintains an
encumbrance accounting system as one method of maintaining budgetary control. These encumbrances lapse at
year-end, and any unexpended balance is eligible to be carried over to the following year's budget appropriations with
City Council approval.
Budget to Actual Comparison. The City experienced a small overall favorable budget variance in the General fund for
the fiscal year ended June 30, 2009. Actual General fund revenues were approximately $114,000 less than the
amount budgeted, while expenditures and inter -fund transfers were approximately $1 million less than the amount
budgeted. The overall positive variance resulted from the continued careful management of resources during FY08-
09.
Debt Administration. At June 30, 2009, the City had no general obligation debt and one tax increment bond issued
during FY97-98. The schedule for repayment of this bond is included in the notes to the financial statements.
Cash Management. To obtain increased flexibility in cash management, the City employs a pooled cash system. The
goals of the City's investment policy are safety, liquidity, and yield, in that order. The City's investments are currently
maintained with U.S. Treasury securities and the State Treasurer's Local Agency Investment Fund (LAIF). LAIF
provides high safety and liquidity and is operated specifically for local governments. Earnings are allocated to the
various funds based on average cash balances.
Risk Management. The City of Rancho Palos Verdes is a member of the California Joint Powers Insurance Authority
(CJPIA). With 119 members, it is the largest joint powers insurance authority in California. Through the CJPIA, the
City is self-insured against liability and workers' compensation claims. As protection against catastrophic loss,
members fund a pool to finance large settlements. During the fiscal year ended June 30, 2009, 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 Diehl, Evans & Company, LLP conducted this year's audit. The auditors' report on the government -wide
financial statements and combining and individual fund statements and schedules is included in the financial section
of this report.
Audit Committee. The City Council appointed two Council members to an ad-hoc Audit Committee for 2009. The
Audit Committee participated in planning the audit, conducted an exit interview with auditors and received the draft
audited financial statements prior to finalizing the document.
GFOA Certificate of Achievement Award. The Government Finance Officer's Association of the United States and
Canada (GFOA) oversees a prestigious national award program to recognize conformance with the highest
standards of report preparation. In order to be awarded a Certificate of Achievement, a government unit must publish
an easily readable and efficiently organized CAFR. This report must satisfy both Generally Accepted Accounting
Principles and applicable legal requirements.
Ix
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, 2008. This was the 16 Reporting
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 Linda Gan-Vanderlinde, the City's new Senior Accountant and Kathryn Downs, Deputy Director of Finance
and Information Technology, who coordinated preparation of the report. I wish to acknowledge the assistance of our
auditors, Diehl, Evans & Company, LLP and the contributions of other Finance and Information Technology
Department staff: Sara Singer, Jane Lin, Selena Wright, Gayle Vanoverbeck, and Nancy Vitez.
I would also like to recognize the City Council for their continued leadership directing the City to achieve a sound
fiscal position over the last several years. We look forward to maintaining this success in the future under the
leadership of the City Council
Respectfully submitted,
Dennis McLean
Director of Finance & Information Technology
X
Sunset in Rancho Palos Verdes
CITY OF RANCHO PALOS VERDES
DIRECTORY OF CITY OFFICIALS
JUNE 30, 2009
CITY COUNCIL
Larry Clark, Mayor
Steve Wolowicz, Mayor Pro -Tem
Peter Gardiner, Councilman
Thomas D. Long, Councilman
Douglas W. Stern, Councilman
ADMINISTRATION AND DEPARTMENT HEADS
City Manager ...........
Deputy City Manager
City Clerk .................
Director of Finance and Information Technology
Director of Planning, Building and Code Enforcement
Director of Public Works .............................................
Director of Recreation and Parks
City Attorney
XI
......................... Carolyn Lehr
...................... Carolynn Petru
...................... Carla Morreale
..................... Dennis McLean
............................. Joel Rojas
................................. Jim Bell
...................... Ron Rosenfeld
Richards, Watson & Gershon
CITY OF RANCHO PALOS VERDES
ORGANIZATIONAL CHART
CITIZENS OF
RANCHO PALOS VERDES
I MAYOR AND CITY COUNCIL I
COMMISSIONS & COMMITTEES
Planning Commission
Traffic Safety Commission
Finance Advisory Committee
CITY MANAGER
Administration/Budget
Personnel/Community Outreach
Risk Management
COMMISSIONS & COMMITTEES
Emergency Preparedness Committee
Equestrian Committee
Oversight Committee for the Water Quality & Flood
Protection Program
CITY ATTORNEY
Richards, Watson & Gershon
RECREATION & PARKS
Park Facilities COMMUNITY DEVELOPMENT
Point Vicente Interpretive Center Planning/Zoning
Special Events Building & Safety/Geology
REACH Program Code Enforcement
View Restoration
PUBLIC SAFETY
FINANCE & INFORMATION
CITY CLERK
TECHNOLOGY
Records Management
Financial Reporting
Animal Control
Public Information
Accounts Payable/Receivable
Elections
Capital Projects
Payroll
Purchasing
Information Technology
RECREATION & PARKS
Park Facilities COMMUNITY DEVELOPMENT
Point Vicente Interpretive Center Planning/Zoning
Special Events Building & Safety/Geology
REACH Program Code Enforcement
View Restoration
PUBLIC SAFETY
PUBLIC WORKS
L.A. County Sheriff
Street Maintenance
L.A. County Fire
Refuse/City Engineering
Animal Control
Park/Building Maintenance
Emergency Preparedness
Capital Projects
M
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, 2008
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.
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FINANCIAL SECTION
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DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
MICHAEL R. LUDIN, CPA
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W. SPRAKER, CPA
NITIN P. PATEL, CPA
ROBERT CALLANAN, CPA
5 CORPORATE PARK, SUITE 100 *PHILIP H. HOLTKAMP, CPA
IRVINE, CALIFORNIA 92606-5165 *THOMAS M. *HARVEY J. SCERHROEDER,ECPA
EDCPA
(949) 399-0600 • FAX (949) 399-0610 KENNETH R. AMES, CPA
WWW.diehleyans.com WILLIAM C. PENTZ, CPA
'A PROFESSIONAL CORPORATION
December 18, 2009
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and
Members of City Council
City of Rancho Palos Verdes
Rancho Palos Verdes, California
We have audited the accompanying financial statements of the governmental activities, the
business -type activity, each major fund, and the aggregate remaining fund information of the City of
Rancho Palos Verdes, California, as of and for the year ended June 30, 2009, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City of Rancho Palos Verdes's management. Our responsibility
is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activity, each major fund,
and the aggregate remaining fund information of the City of Rancho Palos Verdes, California, as of
June 30, 2009, and the respective changes in financial position and cash flows, where applicable,
thereof and the respective budgetary comparison for the General and Street Maintenance Special
Revenue major governmental funds for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330
CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598
(760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890
3
In accordance with Government Auditing Standards, we have also issued our report dated
December 18, 2009, on our consideration of the City of Rancho Palos Verdes's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements and other matters. The purpose of that report is to describe the scope of
our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
The management's discussion is not a required part of the basic financial statements but is
supplementary information required by the accounting principles generally accepted in the United
States of America. We have applied certain limited procedures to the management's discussion and
analysis, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of this required supplementary information. However, we did not audit
the management's discussion and analysis and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Rancho Palos Verdes, California's basic financial statements. The
introductory section, major fund budgetary comparison schedules, combining and individual nonmajor
fund financial statements and schedules, and statistical section are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The major fund budgetary
comparison schedules and combining and individual nonmajor fund financial statements and schedules
have been subjected to the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements
taken as a whole. The introductory section and statistical section have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express
no opinion on them.
r
n
MANAGEMENT'S DISCUSSION & ANALYSIS
4XI
M -
VX
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2009
The Management of the City of Rancho Palos Verdes offers readers of the City of Rancho Palos
Verdes' Financial Statements this narrative overview and analysis of the City's financial activities
for the Fiscal Year ended June 30, 2009. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our Letter of
Transmittal, which can be found on pages iv -x of this report.
Financial Highlights
➢ The assets of the City of Rancho Palos Verdes exceed its liabilities at the close of the
Fiscal Year ended June 30, 2009, by $154,728,813 (Net Assets). Of this amount,
$33,385,079 (Unrestricted Net Assets) may be used to meet the government's ongoing
obligations to its citizens and creditors.
➢ The City's Total Net Assets increased by $543,196. This increase is mainly attributable
to continued payment of the Redevelopment Agency's long term debt to the County.
➢ As of June 30, 2009, the City's Governmental Funds reported combined ending Fund
Balances of $23,434,239, an increase of $590,127 in comparison with the prior year.
The increase in combined ending Fund Balances is primarily attributable to revenue
received in the Proposition C fund that will be used during FY09-10 for an arterial overlay
project.
➢ As of June 30, 2009, unreserved/undesignated Fund Balance for the General Fund was
$10,440,256 or 49% of total General Fund expenditures and transfers out.
➢ The City's total debt decreased by $349,097 (5%) during the current Fiscal Year. The
decrease was primarily attributable to partial payment of the RDA deferred interest
payable.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements, which are comprised of three components: 1) Government -Wide Financial
Statements; 2) Fund Financial Statements; and 3) Notes to the Financial Statements. This report
also contains other supplementary information in addition to the basic financial statements
themselves.
Government -Wide Financial Statements. The Government -Wide Financial Statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar to a
private -sector business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with
the difference between the two reported as Net Assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Rancho
Palos Verdes is improving or deteriorating.
The Statement of Activities presents information showing how the government's net assets
changed during the most recent Fiscal Year. All changes in net assets are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
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
See independent auditors' report.
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2009
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the City include
general government, public safety, public works, planning, building and safety, and recreation.
The City's business -type activities include only the Water Quality and Flood Protection program
for renewal and maintenance of the City's storm drain facilities.
The Government -Wide Financial Statements include not only the City of Rancho Palos Verdes
itself (known as the Primary Government), but also a legally separate Redevelopment Agency
and a legally separate Improvement Authority for which the City of Rancho Palos Verdes is
financially accountable. Financial information for these Component Units has been included as
an integral part of the primary government.
The Government -Wide Financial Statements can be found on pages 19-21 of this report.
Fund Financial Statements. A Fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Rancho Palos Verdes, like other State and local governments, uses fund accounting to ensure
and demonstrate compliance with finance -related legal requirements. All of the Funds of the City
can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary
Funds.
Governmental Funds. Governmental Funds are used to account for essentially the same
functions reported as governmental activities in the Government -Wide Financial Statements.
However, unlike the Government -Wide Financial Statements, Governmental Fund Financial
Statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the Fiscal Year. Such information may
be useful in evaluating a government's near-term financing requirements.
Because the focus of Governmental Funds is narrower than that of the Government -Wide
Financial Statements, it is useful to compare the information presented for Governmental Funds
with similar information presented for governmental activities in the Government -Wide Financial
Statements. By doing so, readers may better understand the long-term impact of the
government's near-term financing decisions. The Governmental Balance Sheet and
Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances
provide a reconciliation to facilitate this comparison between Governmental Funds and
governmental activities.
The City of Rancho Palos Verdes maintained 32 individual Governmental Funds during the Fiscal
Year ended June 30, 2009. Information is presented separately in the Governmental Fund
Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and
Changes in Fund Balances for the General Fund, the Street Maintenance Fund, the Capital
Improvements Fund and the RDA Debt -Service Fund, all of which are considered to be major
funds. Data from the other 28 Governmental Funds are combined into a single, aggregated
presentation. Individual fund data for each of these Other Governmental Funds is provided in the
form of combining statements elsewhere in this report.
The City of Rancho Palos Verdes adopts an annual appropriated budget for each of its
Governmental Funds. A budgetary comparison statement has been provided for each
Governmental Fund to demonstrate compliance with this budget.
The basic Governmental Fund Financial Statements can be found on pages 24-32 of this report.
Proprietary Funds. The City of Rancho Palos Verdes maintains two types of Proprietary Funds.
Enterprise Funds are used to report the same functions presented as business -type activities in
the Government -Wide Financial Statements. The City uses an Enterprise Fund to account for its
See independent auditors' report.
8
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2009
Water Quality and Flood Protection Program. Internal Service Funds are an accounting device
used to accumulate and allocate costs internally among the City's various functions. The City
uses Internal Service Funds to account for its fleet of vehicles, computer systems, furniture and
equipment, Employee Benefits, and Civic Center Building Improvements. Because these
services predominantly benefit the governmental function, they have been included within
governmental activities in the Government -Wide Financial Statements.
Proprietary Fund Financial Statements provide the same type of information as the Government -
Wide Financial Statements, only in more detail. These statements can be found on pages 33-35
of this report. The Proprietary Fund Financial Statements provide separate information for the
Enterprise Fund and the Internal Service Funds. The Enterprise Fund is presented as a single
major fund of the City, while the Internal Service Funds are combined and presented as a single,
aggregated presentation in the Statement. Individual fund data for the Internal Service Funds is
provided in the form of combining statements elsewhere in this report.
Notes to the Financial Statements. The notes provide additional information that is essential to
a full understanding of the data provided in the Government -Wide and Fund Financial
Statements. The notes to the financial statements can be found on pages 38-65 of this report.
Other information. The combining statements referred to earlier in connection with Other
Governmental Funds and Internal Service Funds are presented immediately following the Notes
to the Financial Statements. Combining and individual fund statements and schedules can be
found on pages 68-118 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the City of Rancho Palos Verdes, assets exceeded liabilities by
$154,728,813 at June 30, 2009. By far, the largest portion of the City's Net Assets (78 percent)
reflects its investment in Capital Assets (e.g. Land, Infrastructure, Buildings, and Equipment).
The City uses these Capital Assets to provide services to its citizens; consequently, these assets
are not available for future spending.
City of Rancho Palos Verdes Net Assets
See independent auditors' report.
9
Governmental
Activities
Business -type
Activities
Total
June 30, 2009
June 30, 2008
June 30, 2009
June 30, 2008
June 30, 2009
June 30, 2008
Current and other assets
Capital assets
$ 44,072,296
107,867,070
$ 42,756,269
109,375,667
$ 4,286,089
12,476,664
$ 8,817,059
5,599,028
$ 48,358,385
120,343,734
$ 51,573,328
114,974,695
Total assets
151,939,366
152,131,936
16,762,753
14,416,087
168,702,119
166,548,023
Long-term liabilities outstanding
Other liabilities
7,121,149
4,674,432
7,470,246
3,815,109
-
2,177,725
-
1,077,051
7,121,149
6,852,157
7,470,246
4,892,160
Total liabilities
11,795,581
11,285,355
2,177,725
1,077,051
13,973,306
12,362,406
Invested in capital assets
Restricted
Unrestricted
107,867,070
1,000,000
31,276,715
109,375,667
1,000,000
30,470,914
12,476,664
-
2,108,364
5,599,028
-
7,740,008
120,343,734
1,000,000
33,385,081
114,974,695
1,000,000
38,210,922
Total net assets
$ 140,143,785
1 $ 140,846,581
$ 14,585,028
$ 13,339,036
$ 154,728,813
1 $ 154,185,617
See independent auditors' report.
9
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2009
An additional portion of the City's Net Assets ($1,000,000 or less than 1%) represents resources
that are subject to external restrictions on how they may be used. The remaining balance of
Unrestricted Net Assets ($33,385,079 or 21 %) may be used to meet the government's ongoing
obligations to its citizens and creditors.
Governmental Activities. Governmental Activities decreased the City's Net Assets by
$702,796.
City of Rancho Palos Verdes Changes in Net Assets
Key elements of this decrease are as follows:
➢ Due to the slow down of economy and the housing market, licenses, permits and all other
user charges declined. Contributions and grants from other governmental agencies were
also reduced due to nation-wide reduction of tax revenue, which led to less available
federal and state resources to allocate to the City. Compared with last year, program
revenue decreased by $2,166,627 or 24 percent.
➢ On the other side, the expenses increased in every function. Key factors included the
purchase of affordable housing, accelerated reduction of the City's pension liability, and
improvements to the City's infrastructure.
See independent auditors' report.
10
Governmental
Business -type
Activities
Activities
Total
June 30, 2009
June 30, 2008
June 30, 2009
June 30, 2008
June 30, 2009
June 30, 2008
Program revenues:
Charges for services
$ 3,369,955
$ 4,099,637
$ -
$ -
$ 3,369,955
$ 4,099,637
Operating contributions and grants
2,963,037
3,569,807
2,963,037
3,569,807
Capital contributions and grants
642,020
1,472,195
642,020
1,472,195
General revenues:
Property taxes
11,462,079
10,935,253
11,462,079
10,935,253
Other taxes
5,719,141
5,803,960
5,719,141
5,803,960
Other
855,825
1 1,854,748
1,682,985
1,504,495
2,538,810
3,359,243
Total revenues
25,012,057
27,735,600
1,682,985
1,504,495
26,695,042
29,240,095
Expenses:
Administration
6,356,695
4,724,522
-
-
6,356,695
4,724,522
Public safety
4,233,255
4,044,426
4,233,255
4,044,426
Public works
10,555,058
9,025,725
10,555,058
9,025,725
Parks and recreation
1,605,276
1,395,769
1,605,276
1,395,769
Planning, building and code
enforcement
2,696,502
2,441,321
2,696,502
2,441,321
Interest on long-term debt
268,067
269,708
268,067
269,708
Water Quality Flood Protection
-
-
436,993
300,781
436,993
300,781
Total expenses
25,714,853
21,901,471
436,993
300,781
26,151,846
22,202,252
Increase in net assets before transfers
702,796
5,834,129
1,245,992
1,203,714
543,196
7,037,843
Transfers
4,719,193
-
4,719,193
-
-
Increase in net assets
702,796
1,114,936
1,245,992
5,922,907
543,196
7,037,843
Net assets - beginning of fiscal year
140,846,581
139,731,645
13,339,036
7,416,129
154185617
1 147 147 774
Net assets - end of fiscal year
$ 140,143,785
$ 140,846,581
$ 14,585,028
$ 13,339,036
$ 154,728,813
1 $ 154,185,617
Key elements of this decrease are as follows:
➢ Due to the slow down of economy and the housing market, licenses, permits and all other
user charges declined. Contributions and grants from other governmental agencies were
also reduced due to nation-wide reduction of tax revenue, which led to less available
federal and state resources to allocate to the City. Compared with last year, program
revenue decreased by $2,166,627 or 24 percent.
➢ On the other side, the expenses increased in every function. Key factors included the
purchase of affordable housing, accelerated reduction of the City's pension liability, and
improvements to the City's infrastructure.
See independent auditors' report.
10
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2009
Revenues by Source — Governmental Activities
charges for
other services
other taxes 3% 13% operating
contributions
L
property taxes
46%
nd grants
12%
capital
contributions
and grants
3%
Business -Type Activities. Business -type activities increased the City's net assets by
$1,245,992 primarily due to collection of storm drain user fees that will be utilized during FY09-10
for projects continued from FY08-09.
Financial Analysis of Governmental Funds
As of the end of the current Fiscal Year, the City's Governmental Funds reported combined
ending Fund Balances of $23,434,239, an increase of $590,125 in comparison with the prior year.
Approximately 57% of the combined ending Fund Balances (about $13.45 million) constitute
unreserved Fund Balance, which is available for spending at the City's discretion. The combined
unreserved Fund Balance includes the RDA Debt Service negative unreserved Fund Balance of
$16,283,294. 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 ($6,219,545), and 2) for a
variety of other restricted purposes ($3,767,141).
The General Fund is the chief operating fund of the City of Rancho Palos Verdes. At the end of
the current Fiscal Year, the unreserved Fund Balance of the General Fund was $11,773,556,
while total Fund Balance reached $18,087,274. 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 55% of total General Fund
uses, while total Fund Balance represents 86% of that same amount.
During Fiscal Year 08-09, the Fund Balance of the City's General Fund decreased by $2,007,063.
The City Council adopted a reserve policy that included a Capital Improvement Projects reserve
of $3 million for emergency infrastructure projects. The reserve was funded with a transfer from
the General Fund during FY08-09. In addition, there was a favorable General Fund expenditure
variance of about $1 million. The total variance was comprised of insignificant savings in a large
number of the General Fund's 32 budget programs. About half of the expenditure variance was
concentrated in the City Attorney, Personnel, Information Technology, Park and Building
Maintenance, and Building and Safety programs. Most of the expenditure variances were
permanent savings for FY08-09 programs.
Compared with the prior year, the Street Maintenance Fund Balance was decreased by
$154,108. This special revenue fund receives restricted revenue sources for street maintenance
activities, but is heavily subsidized by the General Fund. The General Fund subsidy for FY08-09
See independent auditors' report.
11
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2009
was reduced to facilitate a planned reduction of the accumulated Street Maintenance fund
balance that had grown over time through prior years' favorable expenditure variances.
The Debt Service Fund has a net negative Fund Balance of $16,283,294. 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 $754,851, which
primarily represents accumulated interest on the advance from the City to the Redevelopment
Agency.
As noted above, the Capital Improvement Projects (CIP) Fund received a transfer of $3,000,000
from the General Fund to be held in reserve for emergency infrastructure projects per the City
Council's approved Reserve Policy. In addition, the General Fund transferred almost $1.5 million
to the CIP Fund for the annual residential pavement project. A project was completed using
about $0.9 million of FY08-09 monies, and the remaining appropriation was continued to FY09-
10. The remaining $0.6 million of the FY08-09 General Fund transfer will be used by the CIP
Fund during FY09-10 for the next annual residential pavement project.
Financial Analysis of 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 $2,108,364. Unrestricted Net Assets of the Internal Service Funds
at the end of the year amounted to $4,499,049. The total growth in Proprietary Fund type net
assets was $256,589 or 4 percent.
General Fund Budgetary Highlights
The difference between original budgeted expenditures and the final amended budget was a
decrease of $598,885; and is briefly summarized as follows:
y A decrease of $1,333,300 was attributable to appropriations continued to FY09-10.
y An increase of $1,277,915 was attributable to appropriations continued from FY07-08.
y Salary and benefit budgets across a number of programs were reduced by about
$427,500 to account for vacant positions.
y Other immaterial reductions totaled approximately $116,000.
Capital Asset and Debt Administration
Capital Assets. The City's investment in Capital Assets for its governmental activities as of June
30, 2009, amounts to $107,867,070 (net of accumulated depreciation). This investment in capital
assets includes land, buildings, park improvements, roadways, sewer, storm drains, vehicles,
computer equipment, furniture, other equipment, and construction in progress. During the current
Fiscal Year, the City's investment in capital assets increased by about $1.9 million or a little more
than 1 percent.
Major capital asset events during the current Fiscal Year included the following:
➢ Depreciation of $3.5 million was recorded for the City's Capital Assets.
Residential street overlay was completed with a total cost of about $1.0 million.
See independent auditors' report.
12
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2009
y Two condominium units were purchased for the purpose of providing affordable housing
at a total cost of about $0.8 million.
City of Rancho Palos Verdes Capital Assets
(net of depreciation)
Additional information on the City's Capital Assets can be found in Note # 4 on pages 52-53 of
this report.
Long-term debt. At the end of the current Fiscal Year, the City of Rancho Palos Verdes had
total debt outstanding of $7,121,149. Of this amount, $6,805,909 is a liability of the
Redevelopment Agency.
City of Rancho Palos Verdes Outstanding Debt
RDA Tax Increment Bond
RDA Deferred Interest Payable
Emplovee compensated absences
Total
Governmental
Activities
June 30. 2009 1 June 30. 2008
$ 5,315,000 $ 5,370,000
1,490,909 1,785, 536
315,240 314,710
$ 7,121,149 1 $ 7,470,246
The City's total debt decreased by $349,097 (4.7%) during the current Fiscal Year, primarily due
to partial payment of the RDA deferred interest payable.
See independent auditors' report.
13
Governmental
Activities
June 30, 2009
June 30, 2008
Capital assets not being depreciated
Land
$ 32,139,008
$ 32,139,008
Construction in progress
196,174
156,354
Total capital assets not being depreciated
32,335,182
32,295,362
Capital assets being depreciated, net
Buildings
7,725,387
7,174,749
Vehicles
153,979
163,410
Computer equipment
71,327
69,569
Furniture, fixtures and equipment
92,471
142,659
Infrastructure
Roadwaysystem
45,484,324
46,682,868
Sewer system
9,357,693
9,812,802
Storm drain system
10,681,899
10,932,378
Park system
1,964,808
2,101,870
Total capital assets being depreciated, net
75,531,888
77,080,305
Capital Assets, net
$ 107,867,070
$ 109,375,667
Additional information on the City's Capital Assets can be found in Note # 4 on pages 52-53 of
this report.
Long-term debt. At the end of the current Fiscal Year, the City of Rancho Palos Verdes had
total debt outstanding of $7,121,149. Of this amount, $6,805,909 is a liability of the
Redevelopment Agency.
City of Rancho Palos Verdes Outstanding Debt
RDA Tax Increment Bond
RDA Deferred Interest Payable
Emplovee compensated absences
Total
Governmental
Activities
June 30. 2009 1 June 30. 2008
$ 5,315,000 $ 5,370,000
1,490,909 1,785, 536
315,240 314,710
$ 7,121,149 1 $ 7,470,246
The City's total debt decreased by $349,097 (4.7%) during the current Fiscal Year, primarily due
to partial payment of the RDA deferred interest payable.
See independent auditors' report.
13
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2009
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 $1,345,594,000. Additional information on the City's long-term debt can be found in
Note # 5 on pages 53-56 of this report.
Economic Factors and Next Year's Budgets and Rates
➢ Local property values remain strong; therefore, Property Tax Revenue (approximately 43
percent of City -Wide Revenues) remains largely unaffected by the downturn in the
economy. While other cities in Los Angeles County saw property assessments decrease
by as much as 15 percent for FY09-10, the City of Rancho Palos Verdes experienced an
overall 1.3 percent increase in property assessments.
➢ The state declared a fiscal emergency and took a property tax loan from cities for FY09-
10. The amount of the City's loan to the state is about $0.8 million. The City was able to
sell the FY09-10 loan receivable; therefore, the City's FY09-10 property tax revenue will
remain intact.
➢ A major hotel development, the Terranea Resort & Spa, opened for business on 102
acres of the City's coastline on June 12, 2009. The Resort employs more than 700
people and generates transient occupancy tax, sales tax, business license tax, and golf
tax deposited to the City's General Fund. The Resort is expected to generate total tax
revenue of as much as $8 million annually once it reaches stabilization. The City's FY09-
10 budget does not include transient occupancy tax, sales tax, and golf tax to be received
from the Resort. After initial revenue trends are demonstrated, adjustments will be made
to the City's FY09-10 budget during the Midyear Financial Review.
➢ The Consumer Price Index for Los Angeles County decreased by 2.2 percent for the 12
months ended June 2009; therefore, the City's FY09-10 budget includes no increases for
revenues such as business license tax and expenditures such as employee salaries.
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
financea-rov.com.
See independent auditors' report.
14
BASIC FINANCIAL STATEMENTS
15
Coast Guard Lighthouse
16
GOVERNMENT -WIDE STATEMENTS
17
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Docent Hike — Tide Pools
18
CITY OF RANCHO PALOS VERDES
61F-1YW►51®1120911WIN NWILI 9MW
June 30, 2009
ASSETS:
Cash and cash equivalents
Receivables:
Taxes
Interest
Notes
Other
Prepaid costs
Land held for development
Capital assets, not being depreciated:
Land
Construction in progress
Capital assets, being depreciated, net:
Property and equipment
Buildings and improvements
Infrastructure
TOTAL ASSETS
Governmental Business -type
Activities Activities Total
$ 39,679,902 $ 4,252,469 $ 43,932,371
812,920
-
812,920
104,288
11,689
115,977
743,591
-
743,591
843,046
21,931
864,977
1,186,157
-
1,186,157
702,392
-
702,392
32,139,008
1,408,493
33,547,501
196,174
7,419,621
7,615,795
317,777
5,906
323,683
7,725,387
-
7,725,387
67,488,724
3,642,644
71,131,368
LIABILITIES:
Accounts payable and accrued liabilities
3,240,180 1,800,439
5,040,619
Interest payable
20,825 -
20,825
Retentions payable
54,300 377,286
431,586
Unearned revenue
132,074 -
132,074
Deposits payable
1,227,053
1,227,053
Long-term liabilities:
Due within one year
297,908
297,908
Due beyond one year
6,823,241
6,823,241
TOTAL LIABILITIES
11.795.581 2.177.725
13.973.306
NET ASSETS:
Invested in capital assets, net of related debt
Restricted for:
Community development:
Nonexpendable
Unrestricted
TOTAL NET ASSETS
107,867,070 12,476,664 120,343,734
1,000,000 - 1,000,000
31,276,715 2,108,364 33,385,079
$ 140,143,785 $ 14,585,028 $ 154,728,813
See independent auditors' report and notes to financial statements.
19
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
For the year ended June 30, 2009
Functions/programs
Expenses
Governmental Activities:
Administration
$ 6,356,695
Public safety
4,233,255
Public works
10,555,058
Parks and recreation
1,605,276
Planning, building and
code enforcement
2,696,502
Interest on long-term debt
268,067
Total governmental activities
25,714,853
Business -type Activity:
Water Protection Flood Control
436,993
Total Primary Government
$ 26,151,846
Program Revenues
Operating Capital
Charges for Grants and Grants and
$ 554,947 $ 4,797 $ -
266,766 100,000 -
422,535 2,745,219 642,020
482,952 - -
1,642,755 113,021 -
3,369,955 2,963,037 642,020
$ 3,369,955 $ 2,963,037 $ 642,020
General revenues:
Taxes:
Property tax, levied for general purpose
Property tax, Redevelopment Agency
tax increment
Storm Drain user fees levied for water quality
and flood protection
Transient occupancy tax
Sales tax
Franchise tax
Motor vehicle in lieu tax (unrestricted)
Utility user tax
Othertaxes
Investment income
Unrestricted grants, contributions and other revenues
Total general revenues and transfers
Change in net assets
Net assets - beginning of year
Net assets - end of year
See independent auditors' report and notes to financial statements.
20
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activity Total
$ (5,796,951) $
(3,866,489)
(6,745,284)
(1,122,324)
(940,726)
(268,067)
(18,739,841)
$ (5,796,951)
(3,866,489)
(6,745,284)
(1,122,324)
(940,726)
(268,067)
- (18,739,841)
-
(436,993)
(436,993)
(18,739,841)
(436,993)
(19,176,834)
10,341,038
-
10,341,038
1,121,041
-
1,121,041
-
1,251,733
1,251,733
85,245
-
85,245
1,052,398
-
1,052,398
1,709,009
-
1,709,009
147,904
-
147,904
2,267,431
-
2,267,431
457,154
-
457,154
630,842
104,601
735,443
224,983
326,651
551,634
18,037,045
1,682,985
19,720,030
(702,796)
1,245,992
543,196
140, 846,5 81
13,339,036
154,185,617
$ 140,143,785
$ 14,585,028
$ 154,728,813
21
Shoreline Park
22
FUND FINANCIAL STATEMENTS
23
CITY OF RANCHO PALOS VERDES
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2009
FUND BALANCES (DEFICIT):
Special
Reserved for:
Revenue
Reimbursement settlement agreement
-
Street
Prepaid items
General
Maintenance
ASSETS
6,219,543
-
Cash and cash equivalents
$ 13,896,377
$ 732,099
Receivables:
-
-
Taxes
764,413
-
Interest
49,688
234
Notes
-
-
Other
501,030
89,472
Due from other funds
444,363
-
Prepaid items
94,175
-
Advances to other funds
16,886,970
-
Land held for development
-
-
TOTAL ASSETS
32,637,77
821,805
LIABILITIES AND FUND BALANCES
-
-
LIABILITIES:
-
-
Accounts payable and accrued liabilities
$ 2,427,249
$ 364,581
Due to other funds
-
-
Retentions payable
21,557
32,743
Deferred revenue
10,873,883
-
Advances from other funds
-
-
Deposits payable
1,227,053
-
TOTAL LIABILITIES
14,549,742
397,324
FUND BALANCES (DEFICIT):
Reserved for:
Reimbursement settlement agreement
-
-
Prepaid items
94,175
-
Advances to other funds
6,219,543
-
Land held for development
-
-
Housing set-aside
-
-
Habitat restoration
-
-
Unreserved:
Designated for continuing appropriations:
General fund
1,333,300
-
Special revenue funds
-
204,000
Capital projects funds
-
-
Undesignated and reported in:
General fund
10,440,256
-
Special revenue funds
-
220,481
Debt service fund
-
-
Capital projects funds
-
-
Permanent fund
-
-
TOTAL FUND BALANCES (DEFICIT)
18,087,274
424,481
TOTAL LIABILITIES AND FUND BALANCES
$ 32,637,016 $
821,805
See independent auditors' report and notes to financial statements.
24
Debt
Capital
- - 106,350
106,350
Service
Projects
Other
Total
Redevelopment
Capital
Governmental
Governmental
Agency
Improvements
Funds
Funds
1,000,000
$ 46,672
$ 7,245,599
$ 13,344,754
$ 35,265,501
15,885
-
32,621
812,919
4
5,590
37,126
92,642
-
-
388,629
388,629
-
1,200
251,344
843,046
-
4,126
-
448,489
541,115
-
20,359
655,649
-
-
-
16,886,970
-
-
702,392
702,392
603,676
7,2561515
S 14,777,225
56,096,237
$ - $ 49,335 283,648
$ 3,124,813
- - 106,350
106,350
- - -
54,300
- - 388,629
11,262,512
16,886,970 - -
16,886,970
- - -
1,227,053
16,886,970 49,335 778,627
32,661,998
- - 1,000,000
1,000,000
541,115 - 20,359
655,649
- - -
6,219,543
- - 702,392
702,392
- - 1,365,359
1,365,359
- - 43,741
43,741
- - - 1,333,300
- - 206,633 410,633
- 5,682,803 759,368 6,442,171
- - - 10,440,256
- - 7,689,860 7,910,341
(16,824,409) - - (16,824,409)
- 1,524,377 1,848,655 3,373,032
- - 362,231 362,231
(16,283,294) 7,207,180 13,998,598 23,434,239
$ 603,676 $ 7,256,515 $ 14,777,225 $ 56,096,237
25
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CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
June 30, 2009
Fund balances - total governmental funds $ 23,434,239
Amounts reported for governmental activities in the Statement of Net Assets are different because:
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported in the governmental funds balance sheet. 107,549,293
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. 10,667,427
Intergovernmental revenues earned, but not available, are deferred in the fund financial statements.
The revenue is not deferred on the Statement of Activities. 74,383
Interest expenditures are recognized when due, and therefore, interest payable is not recorded in
the governmental funds. (20,825)
Long-term notes receivable are not current available resources and, therefore, do not affect the
governmental fund balance. 743,591
Long-term liabilities are not due and payable in the current period and, therefore, are not reported
in the governmental funds. (7,121,149)
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. 4,816,826
Net assets of governmental activities $ 140,143,785
See independent auditors' report and notes to financial statements.
27
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2009
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,119,529 (865,933)
OTHER FINANCING SOURCES (USES)
Transfers in 177,546 711,825
Transfers out (5,304,138) -
TOTAL OTHER FINANCING SOURCES (USES) (5,126,592) 711,825
NET CHANGE IN FUND BALANCES (2,007,063) (154,108)
FUND BALANCES (DEFICIT) - BEGINNING OF YEAR 20,094,337 578,589
FUND BALANCES (DEFICIT) - END OF YEAR $ 18,087,274 $ 424,481
See independent auditors' report and notes to financial statements.
28
Special
Revenue
Street
General
Maintenance
REVENUES:
Taxes
$ 15,656,090
$ -
Licenses and permits
1,754,687
-
Fines and forfeitures
213,900
Use of money and property
935,944
29,561
Charges for services
57,538
105,599
Revenue from other agencies
152,701
1,063,862
Other revenues
145,300
-
TOTAL REVENUES
18,916,160
1,199,022
EXPENDITURES:
Current:
Administration
4,795,190
-
Public safety
4,200,970
-
Public works
3,034,391
2,064,955
Parks and recreation
1,353,930
-
Planning, building and code enforcement
2,412,150
-
Pass through to other agencies
-
-
Capital outlay
-
-
Debt service:
Principal
-
-
Interest and fiscal charges
-
-
TOTAL EXPENDITURES
15,796,631
2,064,955
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,119,529 (865,933)
OTHER FINANCING SOURCES (USES)
Transfers in 177,546 711,825
Transfers out (5,304,138) -
TOTAL OTHER FINANCING SOURCES (USES) (5,126,592) 711,825
NET CHANGE IN FUND BALANCES (2,007,063) (154,108)
FUND BALANCES (DEFICIT) - BEGINNING OF YEAR 20,094,337 578,589
FUND BALANCES (DEFICIT) - END OF YEAR $ 18,087,274 $ 424,481
See independent auditors' report and notes to financial statements.
28
Debt
Capital
Service
Projects
Other
Total
Redevelopment
Capital
Governmental
Governmental
Agency
Improvements
Funds
Funds
$ 900,840
$ -
$ 1,016,192
$ 17,573,122
-
-
-
1,754,687
-
-
-
213,900
222
45,986
228,171
1,239,884
-
-
-
163,137
-
658,198
1,700,629
3,575,390
-
-
321,870
467,170
901,062
704,184
3,266,862
24,987,290
18,509
-
101,089
4,914,788
-
-
32,285
4,233,255
-
-
1,975,703
7,075,049
-
-
-
1,353,930
-
-
311,322
2,723,472
187,211
-
-
187,211
-
1,501,477
957,790
2,459,267
349,627
-
-
349,627
1,100,566
-
-
1,100,566
1,655,913
1,501,477
3,378,189
24,397,165
(754,851)
(797,293)
(111,327)
590,125
-
4,608,507
317,542
5,815,420
-
-
(511,282)
(5,815,420)
-
4,608,507
(193,740)
-
(754,851)
3,811,214
(305,067)
590,125
(15,528,443)
3,395,966
14,303,665
22,844,114
$ (16,283,294)
$ 7,207,180
$ 13,998,598
$ 23,434,239
29
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2009
Net change in fund balances - total governmental funds $ 590,125
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities,
the cost of those assets is allocated over their estimated useful lives as depreciation expense, or
are allocated to the appropriate functional expense when the cost is below the capitalization threshold.
Asset disposals are also not recognized in the governmental funds. This activity reconciled as follows:
Cost of assets capitalized 1,895,345
Depreciation expense (3,346,081)
Unpaid accrued interest income is deferred in the governmental funds since it is not available. This
income is accrued in the Statement of Activities. 832,441
Intergovernmental revenues earned, but not available are deferred in the fund financial statements. (7,822)
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. 58
Increases in long-term notes receivable use current financial resources and are included in the expenditures
of governmental funds. Repayments of long-term notes receivables provide current financial resources
and are included in the revenues of governmental funds. These changes in notes receivable are not
reflected in the revenues or expenses of the Statement of Activities. This amount represents the net
change in the long-term notes receivable. (26,556)
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. (530)
Principal payments on debt are recorded as expenditures in the funds. The expenditure is not recognized
in the Statement of Activities since it reduces the liability reported on the Statement of Net Assets.
Principal payments consisted of the following:
Redevelopment Agency tax increment bond 55,000
Redevelopment Agency deferred interest payable 294,627
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. (989,403)
Change in net assets of governmental activities $ (702,796)
See independent auditors' report and notes to financial statements.
30
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the year ended June 30, 2009
31
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Taxes $
16,245,100
$ 15,810,100
$ 15,656,090
$ (154,010)
Licenses and permits
1,601,913
1,691,913
1,754,687
62,774
Fines and forfeitures
276,600
241,600
213,900
(27,700)
Use of money and property
1,020,950
860,950
935,944
74,994
Charges for services
58,200
58,200
57,538
(662)
Revenue from other agencies
332,500
222,500
152,701
(69,799)
Other revenues
145,300
145,300
145,300
TOTAL REVENUES
19,680,563
19,030,563
18,916,160
(114,403)
EXPENDITURES:
Current:
Administration
5,216,637
5,093,555
4,795,190
298,365
Public safety
4,300,890
4,322,370
4,200,970
121,400
Public works
3,675,857
3,354,494
3,034,391
320,103
Parks and recreation
1,440,990
1,434,260
1,353,930
80,330
Planning, building and code enforcement
2,753,620
2,584,430
2,412,150
172,280
TOTAL EXPENDITURES
17,387,994
16,789,109
15,796,631
992,478
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
2,292,569
2,241,454
3,119,529
878,075
OTHER FINANCING SOURCES (USES):
Transfers in
230,246
206,246
177,546
(28,700)
Transfers out
(2,453,386)
(5,381,288)
(5,304,138)
77,150
TOTAL OTHER FINANCING
SOURCES (USES)
(2,223,140)
(5,175,042)
(5,126,592)
48,450
NET CHANGE IN FUND BALANCE
69,429
(2,933,588)
(2,007,063)
926,525
FUND BALANCE - BEGINNING OF YEAR
20,094,337
20,094,337
20,094,337
-
FUND BALANCE - END OF YEAR $
20,163,766
$ 17,160,749
$ 18,087,274
$ 926,525
See independent auditors' report and notes to financial statements.
31
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, 2009
EXPENDITURES:
Current:
Public works 1,964,845 2,097,145 2,064,955 32,190
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (741,016) (873,316) (865,933) 7,383
OTHER FINANCING SOURCES:
Transfers in 641,825 711,825 711,825 -
NET CHANGE IN FUND BALANCE (99,191) (161,491) (154,108) 7,383
FUND BALANCE - BEGINNING OF YEAR 578,589 578,589 578,589 -
FUND BALANCE - END OF YEAR $ 479,398 $ 417,098 $ 424,481 $ 7,383
See independent auditors' report and notes to financial statements.
32
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 9,000 $ 9,000
$ 29,561
$ 20,561
Charges for services
4,000 4,000
105,599
101,599
Revenue from other agencies
1,210,829 1,210,829
1,063,862
(146,967)
TOTAL REVENUES
1,223,829 1,223,829
1,199,022
(24,807)
EXPENDITURES:
Current:
Public works 1,964,845 2,097,145 2,064,955 32,190
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (741,016) (873,316) (865,933) 7,383
OTHER FINANCING SOURCES:
Transfers in 641,825 711,825 711,825 -
NET CHANGE IN FUND BALANCE (99,191) (161,491) (154,108) 7,383
FUND BALANCE - BEGINNING OF YEAR 578,589 578,589 578,589 -
FUND BALANCE - END OF YEAR $ 479,398 $ 417,098 $ 424,481 $ 7,383
See independent auditors' report and notes to financial statements.
32
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Receivables:
Interest
Other
Prepaid items
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
Capital assets, not being depreciated:
Land
Construction in progress
Capital assets, being depreciated:
Property and equipment
Infrastructure
Accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Due to other funds
Accounts payable and accrued liabilities
Retentions payable
TOTAL CURRENT LIABILITIES
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
See independent auditors' report and notes to financial statements.
33
Business -type Governmental
Activity-
Activities -
Water Quality
Internal
Flood Protection
Service
Enterprise Fund
Funds
$ 4,252,469 $ 4,414,401
11,689 11,646
21,931 -
- 530,508
1,408,493
-
7,419,621
-
11,813
1,346,194
3,850,856
-
(214,119)
(1,028,417)
12,476,664
317,777
16,762,753
5,274,332
- 342,139
1,800,439 115,367
377,286 -
2,177,725 457,506
12,476,664 317,777
2,108,364 4,499,049
$ 14,585,028 $ 4,816,826
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS - PROPRIETARY FUNDS
For the year ended June 30, 2009
OPERATING REVENUES:
Charges for services
OPERATING EXPENSES:
Personnel services
Materials and supplies
Maintenance
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUES:
Other revenues
Interest income
Storm drain user fees
TOTAL NONOPERATING REVENUES
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING OF YEAR
TOTAL NET ASSETS - END OF YEAR
See independent auditors' report and notes to financial statements.
34
Business -type Governmental
Activity-
Activities -
Water Quality
Internal
Flood Protection
Service
Enterprise Fund
Funds
8,902
2,318,464
60,645
186,188
281,664
223,940
85,782
142,663
(436,993) (1,075,521)
326,651
1,580
104,601
84,538
1,251,733
-
1,682,985
86,118
1,245,992
(989,403)
13,339,036
5,806,229
$ 14,585,028
$ 4,816,826
CITY OF RANCHO PALOS VERDES
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services provided
Payments to suppliers
Payments to employees
NET CASH USED BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Receipts from storm drain user fees
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS - END OF YEAR
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash used by operating activities:
Depreciation
Changes in operating assets and liabilities:
Increase in prepaid items
Decrease in accrued liabilities
NET CASH USED BY OPERATING ACTIVITIES
See independent auditors' report and notes to financial statements.
35
Business -type Governmental
Activity-
Activities -
Water Quality
Internal
Flood Protection
Service
Enterprise Fund
Funds
$ -
$ 1,795,734
(342,309)
(306,993)
(8,902) (2,717,372)
(351,211) (1,228,631)
(5,862,744) (84,801)
1,253,920 342,139
453,786 99,293
(4,506,249) (872,000)
Q'7cQ'71Q C IQG Alli
$ 4,252,469 $ 4,414,401
$ (436,993) $ (1,075,521)
85,782 142,663
- (382,011)
- 86,238
$ (351,211) $ (1,228,631)
]r
NOTES TO FINANCIAL STATEMENTS
37
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Rancho Palos Verdes (the City) conform to
accounting principles generally accepted in the United States of America as
applicable to governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for governmental accounting and
financial reporting principles. The following is a summary of the significant
policies.
A. Reporting Entity
The reporting entity, "City of Rancho Palos Verdes", includes the accounts of the
City, the Rancho Palos Verdes Redevelopment Agency (the RDA), and the Joint
Powers Improvement Authority (the Authority).
The City was incorporated on September 7, 1973, as a General Law City and
operates under a Council/Manager form of government.
The RDA was formed in 1984 pursuant to the State of California Health and
Safety Code Section 33000 entitled "Community Redevelopment Law". Its
purpose is to finance long-term capital improvements designed to eliminate
physical and economic blight in a project area through stabilization of hazardous
landslides.
The Authority was formed on September 4, 1990, in accordance with the
provisions of the Reimbursement and Settlement Agreement, dated October 27,
1987, entered into by the City, the RDA, and the County of Los Angeles (the
County) in connection with the Horan Lawsuit. The Agreement requires funds to
be set aside and expended by the Authority to maintain landslide abatement
improvements installed and constructed by the RDA.
The criteria used in determining the scope of the reporting entity are based on
the provisions of GASB Statement 14. The City of Rancho Palos Verdes is the
primary government unit. Component units are those entities which are
financially accountable to the primary government, either because the City
appoints a voting majority of the component unit's Board, or because the
component unit will provide a financial benefit or impose a financial burden on
the City. The City has accounted for both the RDA and the Authority as "blended"
component units. Despite being legally separate entities, the RDA and the
Authority are so intertwined with the City, they are, in substance, part of the City's
operations.
See independent auditors' report.
38
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accordingly, the balances and transactions of the RDA are reported as separate
Special Revenue, Debt Service, and Capital Projects Funds. The balances and
transactions of the Authority are reported as separate Permanent and Special
Revenue Funds. The following specific criteria were used in determining that the
RDA and the Authority are "blended" component units:
1) The members of the City Council also act as the governing body of both the
RDA and the Authority.
2) The City, the RDA and the Authority are financially interdependent. The City
subsidizes maintenance operations performed by the Authority. The City makes
loans to the RDA for use on redevelopment projects. Available property tax
revenues of the RDA will be used to repay the loans from the City. It is not
anticipated that tax increment revenues will be available to repay the loans any
time in the immediate future.
3) Employees of the City manage both the RDA and the Authority.
Separately issued financial statements for both the RDA and the Authority may
be obtained at the City's administrative offices.
Participation in Public Entity Joint Powers Authority
The City is a member of the Palos Verdes Peninsula Transit Joint Powers
Authority (the Transit Authority). The Transit Authority is comprised of four
member cities and is organized under a Joint Powers Agreement pursuant to the
California Government Code. The purpose of the Authority is to study,
implement, and provide a public transit system within and around the Palos
Verdes Peninsula. These transit services include Palos Verdes Transit, Dial -A -
Ride, and a fixed route shuttle service. Periodic deposits are paid by member
Cities and are adjusted retrospectively to cover costs. Costs are prorated among
all participating Cities based on population.
The City does not have an equity interest in the Transit Authority; therefore, no
amount has been reported in the Statement of Net Assets. However, the City
does have an ongoing financial interest, because the City is able to influence the
operations of the Authority so that the Authority uses its resources on behalf of
the City. Also, an ongoing financial responsibility exists because the Authority is
dependent on continued funding from the City. The condensed financial
information of the Authority has not been reproduced in this report, but is
available upon request from the Authority by emailing
See independent auditors' report.
39
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
pvtransit(a-)-palosverdes.com or mailing a request to P.O. Box 2656, Palos Verdes
Peninsula, CA 90274.
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.
C. Description of Funds
The accounts of the City are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self -balancing accounts that comprise its
assets, liabilities, fund equity, revenues, and expenditures. The following are
types of funds used:
Governmental Fund Types
• General Fund — Used to account for all financial resources except those that
are required to be accounted for in another fund.
• Special Revenue Funds — Used to account for the proceeds of specific revenue
sources that are restricted by law or administrative action for specified purposes.
• Debt Service Fund — The debt service fund of the RDA is used to account for
property tax increment revenue and related interest income. Disbursements from
this fund consist mainly of principal and interest on RDA indebtedness.
• Capital Projects Funds — Used to account for financial resources used for the
construction of specific capital projects.
See independent auditors' report.
40
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
• Permanent Fund — Used to account for resources legally restricted to the extent
that only earnings, and not principal, may be used for purposes that support the
reporting government's programs.
Proprietary Fund Types
• Enterprise Funds — Used to finance and account for the acquisition, operation,
and maintenance of the City's facilities and services; which are supported
primarily by user charges.
• Internal Service Funds — Used to account for the financing of goods or services
provided by one department of the City to other departments on a cost -
reimbursement basis.
D. Basis of Accounting/Measurement Focus
Government — Wide Financial Statements
The City's Government -Wide Financial Statements include a "Statement of Net
Assets" and a "Statement of Activities". These two statements present
summaries of Governmental Activities for the City.
These statements are presented on an "economic resources" measurement
focus and the accrual basis of accounting. Accordingly, all of the City's assets
and liabilities, including capital assets, infrastructure, and long-term debt, are
included in the accompanying Statement of Net Assets. The Statement of
Activities presents changes in net assets. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned, while expenses
are recognized in the period in which the liability is incurred. The Statement of
Activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function. Program revenue transactions for the
City are reported in three categories: 1) Charges for Services, 2) Operating
Grants and Contributions, and 3) Capital Grants and Contributions. Charges for
Services include revenues from customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function.
Operating Grants and Contributions include revenues restricted to meeting the
requirements of a particular operating function and may include state shared
revenues and grants. Capital Grants and Contributions include revenues
restricted to meeting the requirements of a particular capital function and may
include grants and developer fees. Taxes and other items not properly included
See independent auditors' report.
41
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
among program revenues are reported
balances in the Governmental -Wide
prescribed by GASB Statement No. 34.
instead as general revenues. Internal
Statements have been eliminated as
Governmental Fund Financial Statements
Governmental fund financial statements include a "Balance Sheet —
Governmental Funds" and "Statement of Revenues, Expenditures, and Changes
in Fund Balances — Governmental Funds" for all major and other governmental
funds. An accompanying schedule is presented to reconcile and explain the
differences in fund balances as presented in these statements to the Net Assets
presented in the Government -Wide Financial Statements. The City has
presented all major funds that met qualifications of GASB Statement No. 34. In
addition, the City has presented the Street Maintenance Special Revenue Fund
as a major fund because the City believes the financial position and activities of
this fund are significant to the City as a whole.
All governmental funds are accounted for on a spending or "current financial
resources" measurement focus and the modified accrual basis of accounting.
Accordingly, only current assets and current liabilities are included on the
Balance Sheets. The Statement of Revenues, Expenditures and Changes in
Fund Balances present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in fund balances. Revenues
are recognized in the accounting period in which they become susceptible to
accrual, that is, when they become both measurable and available to finance
expenditures of the current period. "Measurable" means that the amount of the
transaction can be determined, and "available" means collectible within the
current period or soon enough thereafter to be used to pay liabilities of the
current period. Accrued revenues include property taxes received within 60 days
after year-end (see Note #10), taxpayer -assessed taxes such as sales taxes, and
earnings on investments. Grant funds earned but not received are recorded as a
receivable, and grant funds received before the revenue recognition criteria have
been met are reported as deferred revenues. Expenditures are recorded when
the fund liability is incurred, if measurable, except for immature interest on
general long-term debt, which is recognized when due.
The City reports the following major governmental funds
The General Fund is the City's primary operating fund. It accounts for all financial
resources of the City, except those that are required to be accounted for in
another fund.
See independent auditors' report.
42
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Street Maintenance Special Revenue Fund is used to account for state -
shared highway users tax used for street maintenance, right-of-way acquisition
and street construction.
The RDA Debt Service Fund is used to account for the accumulation of
resources and for the payment of principal and interest on the RDA's debt.
The Capital Improvement Capital Projects Fund is used to account for funds
used for the City's capital improvement projects.
Proprietary Fund Financial Statements
Proprietary fund types are accounted for using the "economic resources"
measurement focus and accrual basis of accounting. This means that all assets
and liabilities (whether current or non-current) associated with the activity are
included on the balance sheet. Fund equity is presented as total net assets. The
operating statement of proprietary funds presents increases (revenues) and
decreases (expenses) in total net assets. Revenues are recognized when they
are earned and expenses are recognized when the liability is incurred.
Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenues
of the City's enterprise and internal service funds are charges for services.
Operating expenses for the enterprise and internal service funds include the
costs of services, employee benefits, maintenance of capital assets, and
depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
The City uses the internal service funds to finance and account for goods and
services provided by one City department to other City departments, including
the purchase and maintenance of equipment, replacement of buildings and
payment of employee benefits. The City's internal service funds are presented in
the proprietary funds financial statements. Because the principal users of the
internal services are the City's governmental activities, the financial statements of
the internal service funds are consolidated into the governmental column when
presented in the government -wide financial statements. To the extent possible,
the cost of these services is reported in the appropriate functional activity
(administration, public safety, public works, etc.).
See independent auditors' report.
43
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The City reports the following major enterprise fund
The Water Quality Flood Protection Fund is used to account for voter approved
storm drain user fees used to repair and replace the City's storm drain facilities.
E. Budgetary Accounting
Annual budgets are adopted on a basis consistent with GAAP for all
governmental funds. All annual appropriations lapse at fiscal year-end. Budget
control is maintained over all accounts, and expenditures are not allowed to
exceed appropriations at the department/function level. Throughout the year, the
City Council made several supplementing budgetary adjustments to the General
fund, Special Revenue funds, Capital Projects funds, Proprietary funds and the
Permanent fund. These adjustments resulted in a net appropriation increase in
the amount of $7,516,017. This increase resulted primarily from the amount
carried over from FY07-08 for the McCarrell Canyon storm drain project.
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, 2009, based on calculations by City Management, proceeds of
taxes did not exceed related appropriations.
F. Advances to Other Funds
Long-term inter -fund advances are recorded as a receivable in the advancing
governmental fund and as a liability in the fund receiving the advance. Accrued
unpaid interest, for which there is no immediately available resources to pay, is
deferred in the advancing governmental fund and the principal portion of the
advance is reported as a reservation of fund balance.
G. Caaital Assets
Capital assets include land, machinery and equipment (vehicles, computers,
etc.), buildings and improvements, and infrastructure assets (street systems,
storm drains, sewer systems, etc.); and are reported in Governmental Activities
column of the Government -Wide Financial Statements. Capital assets are
defined by the City as all land and buildings, vehicles, computers and equipment
See independent auditors' report.
44
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
with an initial individual cost of more than $5,000; and improvements and
infrastructure assets with costs of more than $100,000. Such assets are
recorded at historical cost or estimated historical cost if purchased or
constructed. Donated or annexed capital assets are recorded at estimated
market value at the date of donation or annexation.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized. Depreciation is
recorded in the Government -Wide Financial Statements on a straight-line basis
over the useful life of the assets as follows:
Buildings and improvements 25 to 50 years
Vehicles, computers, and equipment 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
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, 2009, vested accrued vacation and compensatory time amounted to
$315,240. The General Fund will primarily be used to liquidate the liability for
compensated absences in future years.
1. 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
See independent auditors' report.
45
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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
short-term U.S. Treasury securities and the State Treasurer's Local Agency
Investment Fund, which is a highly liquid investment pool available to local
governmental agencies. The City has no non-cash investing, capital, or financing
activities to be reported on the statement of cash flows.
K. Claims and Judgments
When it is probable that a claim liability has been incurred, and the amount of the
loss can be reasonably estimated, the City records the estimated loss, net of any
insurance coverage under its self-insurance program. At June 30, 2009, in the
opinion of the City Attorney, the City had no material claims, which require loss
provisions in the financial statements. Small claims and judgments are recorded
as expenditures when paid.
The City's self-insurance program is administered through the California Joint
Powers Authority (the CJPIA), which is described at Note #8. The CJPIA is a
public entity risk pool, which is accounted for under the provisions of GASB
Statement 10. Claim losses recorded in the CJPIA include both current claims
and "Incurred but Not Reported" (IBNR) claims. The City records amounts
deposited with CJPIA as insurance expenditures in the General Fund when paid.
These deposits are subject to retrospective adjustment. Favorable claims
experience result in a refund of deposits from the CJPIA and such refunds, if any,
are recorded as a reduction of insurance expenditures in the year received.
Adverse claims experience result in the payment of additional deposits and such
deposits, if any, are recorded as insurance expenditures when paid.
L. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods
See independent auditors' report.
46
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
and are recorded as prepaid items using the consumption method. In
governmental funds, the prepaid assets recorded do not reflect current
appropriable resources and thus, an equivalent portion of fund balance is
reserved. The City had a total of $1,186,157 ($655,649 in governmental funds
and $530,508 in internal service funds) of prepaid items as of June 30, 2009.
M. Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to
make estimates and assumptions that effect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
N. Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the
City's policy to use restricted resources first, and then unrestricted resources as
they are needed.
NOTE #2 — CASH AND INVESTMENTS
Cash and investments as of June 30, 2009, are classified in the accompanying
financial statements as follows-
Government -
Wide
Statement of
Net Assets
Total cash and cash
equivalents $ 43,932,371
Cash and investments as of June 30, 2009 consist of the following:
Petty Cash $ 2,500
Deposits with Financial Institutions 4,336,392
Investments 39,593,479
Total cash and investments 43.932.371
See independent auditors' report.
47
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #2 — CASH AND INVESTMENTS (continued)
Investments Authorized by the California Government Code and the City of
Rancho Palos Verdes' Investment Policy
The table below identifies the investment types that are authorized for the City of
Rancho Palos Verdes by the California Government Code (or the City's
investment policy, where more restrictive). The table also identifies certain
provisions of the California Government Code (or the City's investment policy,
where more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely
affect the fair value of an investment. Generally, the longer the maturity of an
investment, there is a greater sensitivity of its fair value to changes in market
interest rates. The City manages its exposure to interest rate risk by purchasing a
combination of U.S. Treasury securities and investing with the Local Agency
Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity
need for operations. The City's investment is represented by shares in the pool,
which can be withdrawn in one business day. The average maturity of the pool is
less than one year.
Investment Tvoe
State Investment
Pool
U.S. Treasury
Securities
Remaining
Maturity
(in Months)
12 Months
or Less
$ 30,274,905
9,318,574
$ 39,593,479
See independent auditors' report.
48
Maximum
Amount or
Maximum
Maximum
Percent of
in One
Authorized Investment Type
Maturity
Portfolio
Issuer
U.S. Treasury Obligations
3 years
None
None
Negotiable Certificates of Deposit
5 years
30%
None
Repurchase Agreements
7 days
15%
None
Money Market Mutual Funds
N/A
15%
15%
Local Agency Investment Fund (LAIF)
N/A
None
None
Money Market Savings/Demand Deposits
N/A
$5 million
15%
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely
affect the fair value of an investment. Generally, the longer the maturity of an
investment, there is a greater sensitivity of its fair value to changes in market
interest rates. The City manages its exposure to interest rate risk by purchasing a
combination of U.S. Treasury securities and investing with the Local Agency
Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity
need for operations. The City's investment is represented by shares in the pool,
which can be withdrawn in one business day. The average maturity of the pool is
less than one year.
Investment Tvoe
State Investment
Pool
U.S. Treasury
Securities
Remaining
Maturity
(in Months)
12 Months
or Less
$ 30,274,905
9,318,574
$ 39,593,479
See independent auditors' report.
48
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #2 — CASH AND INVESTMENTS (continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of
a rating by a nationally recognized statistical rating organization. The City's LAIF
investment is not rated; and U.S. Treasury Securities are exempt from
disclosure.
Concentration of Credit Risk
The investment policy of the City of Rancho Palos Verdes contains no limitations
on the amount that can be invested in any one issuer beyond that stipulated by
the California Government Code. As of June 30, 2009, the City's investments in
LAIF and U.S. Treasury Securities were exempt from concentration of credit risk
disclosure.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its
deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the
risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, a government will not be able to recover the value of its investment
or collateral securities that are in the possession of another party. The California
Government Code and the City of Rancho Palos Verdes' investment policy do
not contain legal or policy requirements that would limit the exposure to custodial
credit risk for deposits or investments, other than the following provision for
deposits: The California Government Code requires that a financial institution
secure deposits made by state or local governmental units by pledging securities
in an undivided collateral pool held by a depository regulated under state law
(unless so waived by the governmental unit). The market value of the pledged
securities in the collateral pool must equal at least 110 percent of the total
amount deposited by the public agencies. California law also allows financial
institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150 percent of the secured public deposits.
The amount of the City of Rancho Palos Verdes' deposits with financial
institutions in excess of federal depository insurance limits that was held in
collateralized accounts where the collateral is not held specifically in the name of
the City, as described above, was $4,095,665 at June 30, 2009.
See independent auditors' report.
49
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #2 — CASH AND INVESTMENTS (continued)
Investment in State Investment Pool
The City of Rancho Palos Verdes is a voluntary participant in LAIF that is
regulated by California Government Code Section 16429 under the oversight of
the Treasurer of the State of California. The fair value of the City of Rancho
Palos Verdes' investment in this pool is reported in the accompanying financial
statements at amounts based upon the City of Rancho Palos Verdes' pro -rata
share of the fair value provided by LAIF for the entire pool portfolio (in relation to
the amortized cost of that portfolio). The balance available for withdrawal is
based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis.
LAIF is a governmental investment pool managed and directed by the Treasurer
of the State of California and is not registered with the Securities and Exchange
Commission. An oversight committee comprised of California State officials and
various other participants provides oversight to the management of the fund. The
daily operations and responsibilities of LAIF fall under the auspices of the State
Treasurer's office. The City is a voluntary participant in the investment pool.
NOTE #3 — INTERFUND TRANSACTIONS
Inter -fund balances consisted of the following at June 30, 2009:
Due To
Capital
Improvement
General Capital Project
Fund Funds Totals
o Other Governmental Funds $ 102,224 $ 4,126 $ 106,350
Ui Internal Service Funds 342,139 - 342,139
a�
o Totals: $ 444,363 $ 4,126 $ 448,489
General fund cash was used to cover the prepayment of the employer pension
contribution for FY09-10 in the Employee Benefits Fund. General fund cash was
also used to cover grant expenditures in the other Governmental Funds (CDBG
and Measure A Funds) until reimbursement is received from the grant agencies.
Capital Improvement Projects Fund cash was used to cover TDA Article 3
expenditures in the Bikeways fund that are expected to be reimbursed during
FY09-10.
See independent auditors' report.
50
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #3 — INTERFUND TRANSACTIONS (continued)
Inter -fund Advances
The General Fund has advanced the RDA Debt Service Fund amounts as
described below:
Balance Balance
July 1, 2008 Additions Deletions June 30, 2009
Advances to the Redevelopment Agency $16,010,044 $ 876,926 $ - $ 16,886,970
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, 2009, no revenue was available to the RDA to
repay the advances due to the City, nor is sufficient revenue expected to be
available to repay advances in the immediate future. Variable interest was
accrued at a rate of 5.185 percent during the fiscal year ended June 30, 2009. Of
the $16,886,970 advance, $13,082,972 relates to the Portuguese Bend portion of
the RDA, while $3,803,998 relates to the Abalone Cove portion. During the year
ended June 30, 2009, accrued interest of $644,923 was added to the balance of
the advance to the Portuguese Bend Fund, while principal of $44,485 and
accrued interest of $187,518 was advanced to the Abalone Cove Fund. No
interest has ever been paid by the RDA on these advances; therefore, the
interest component of the advance has been recorded as deferred revenue in the
General Fund of the City.
Inter -fund Transfers
Inter -fund transfers for the year ended June 30, 2009, consisted of the following -
0 General Fund
Street Maintenance
U) Capital Improvement Projects
5o Other Governmental Funds
Totals
See independent auditors' report.
51
Transfer From
Other
General
Governmental
Fund
Funds
Totals
$ -
$ 177,546
$ 177,546
455,025
256,800
711,825
4,531,571
76,936
4,608,507
317,542
-
317,542
$ 5,304,138
$ 511,282
$ 5,815,420
See independent auditors' report.
51
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #3 — INTERFUND TRANSACTIONS (continued)
Transfers are used to: 1) move revenues from the fund that statute or budget
requires for collection to the fund that statute or budget requires for expenditure;
and 2) use unrestricted revenues collected in the General Fund to finance
various programs accounted for in other funds in accordance with budgetary
authorizations or grant matching requirements.
NOTE #4 — CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital
assets including infrastructure in the Government -Wide Statement of Net Assets.
The City elected to use the basic reporting approach as defined by GASB
Statement No. 34 for all infrastructures, whereby depreciation expense and
accumulated depreciation has been recorded. The following tables present the
capital assets activity for the year ended June 30, 2009.
Beginning Ending
Governmental Activities Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 32,139,008 32,139,008
Construction in progress 156,354 1,134,335 (1,094,515) 196,174
Total capital assets not being depreciated 32,295,362 1,134,335 (1,094,515) 32,335,182
Capital assets being depreciated:
Buildings and improvements
Vehicles
Computer equipment
Furniture, fixtures and equipment
Infrastructure
Roadway system
Sewer system
Storm drain system
Parks system
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and improvements
Vehicles
Computer equipment
Furniture, fixtures and equipment
Infrastructure
Roadway system
Sewer system
Storm drain system
Parks system
Total accumulated depreciation
8,798,564
761,010
286,392
24,929
575,430
13,622
466,266
46,250
9,559,574
(12,092) 299,229
(54,610) 534,442
512,517
81,694,552
980,231 82,674,783
25,755,463
25,755,463
13,148,416
13,148,416
6,169,367
114,284 6,283,651
136,894,450
1,940,326 (66,702) 138,768,075
(1,623,815)
(210,372)
(122,982)
(46,452)
(505,861)
(54,382)
(323,607)
(41,829)
(1,834,187)
12,092 (157,342)
54,610 (505,633)
(365,436)
(35,011,684) (2,178,775)
(37,190,459)
(15,942,661) (455,109)
(16,397,770)
(2,216,038) (250,479)
(2,466,517)
(4,067,497) (251,346)
(4,318,843)
(59,814,145) (3,488,744)
66,702 (63,236,187)
Total capital assets being depreciated, net 77,080,305 (1,548,418) - 75,531,888
Governmental activities capital assets, net 109,375,667(414,083) (1,094,515) 107,867,070
See independent auditors' report.
52
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #4 — CAPITAL ASSETS AND DEPRECIATION (continued)
Depreciation expense was charged to functions/programs of the primary
government as follows:
Administration $ 210,372
Public Works (including depreciation of general infrastructure
Assets) 2,884,363
Recreation Services 251,346
Capital assets held by the City's internal service funds are charged
to the various functions based on their usage of the assets 142,663
Total Depreciation Expense — Governmental Activities $3,488,744
Business -type Actvities
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Equi pment
Storm drain system
Total capital assets being depreciated
Less accumulated depreciation for:
Equipment
Storm drain system
Total accumulated depreciation
Total capital assets being depreciated, net
Business -type activities capital assets, net
Beginning Ending
Balance Increases Decreases Balance
1,408,493
(2,363)
1,408,493
1,850,425
6,963,418 (1,394,222)
7,419,621
3,258,918
6,963,418 (1,394,222)
8,828,114
in 2009
RDA Tax Increment Bond
11,813
1,308,440
11,813
2,456,634
1,394,222
3,850,856
2,468,447
1,394,222 -
3,862,669
(3,544)
(2,363)
(5,907)
(124,793)
(83,419)
(208,212)
(128,337)
(85,782)
- (214,119)
in 2009
RDA Tax Increment Bond
2,340,110
1,308,440
- 3,648,550
5,599,028
8,271,858
(1,394,222) 12,476,664
Depreciation expense of $85,782 is included in the Water Quality Flood
Protection enterprise fund.
NOTE #5 — LONG-TERM DEBT
See independent auditors' report.
53
Balance
Balance
Amount Due
July 1, 2008
Additions Deletions
June 30, 2009
in 2009
RDA Tax Increment Bond
$5,370,000
$ - $ (55,000)
$ 5,315,000
$ 65,000
RDA Deferred Interest Payable
1,785,536
- (294,627)
1,490,909
-
Employee Compensated Absences
314,710
233,046 (232,516)
315,240
232,908
Totals
$ 7,470,246
$ 233,046 7 (582,143)
7-7,1721 149
$ 297,908
See independent auditors' report.
53
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #5 — LONG-TERM DEBT (continued)
A. RDA Tax Increment Bond and Deferred Interest Payable
In July 1991, the RDA received $10,000,000 in loan proceeds (the Loan) from
the County of Los Angeles (the County) upon the County's issue of Abalone
Cove Improvement Bonds 2651-M pursuant to a Reimbursement and Settlement
Agreement (the Agreement), dated October 27, 1987 in connection with the
Horan Lawsuit. The Loan was made for the purpose of abating the Abalone
Cove landslide. The settlement Loan was secured by property assessment liens
in the Abalone Cove project area.
As stipulated by the parties to the Agreement, a portion of the Loan proceeds
was used to repay a tax allocation and revenue anticipation promissory note
issued to the County in the principal amount of $1,450,000, plus accrued interest
equal to $179,244. A second portion of the proceeds was used to repay
expenses advanced by the County in the amount of $135,614. A third portion
was used to repay certain loans from the City to the RDA in the amount of
$787,340.
Per the terms of the Agreement, $1,000,000 of the proceeds was deposited in
the Abalone Cove Permanent Fund of the Joint Powers Improvement Authority.
The remainder of the proceeds was accounted for in the RDA's Abalone Cove
Fund. Concurrent with the execution of the Agreement, the County deeded its
title in the Abalone Cove Beach Park to the RDA.
As part of the Agreement, the RDA is required to transfer 17 percent of tax
increment revenue to the Consolidated Fire Protection District of the County and
50.9 percent of tax increment revenue for debt repayment to the County. In
accordance with the Agreement, the RDA was to pay the Loan principal plus
interest at 7.7654 percent over a 30 -year period that began in 1992. However,
these debt payments were to be deferred 10 years until the fiscal year ended
June 30, 2002.
As part of the deferral arrangement, the accrued interest from the inception of the
Loan through June 30, 2002, in the amount of $7,314,944, was scheduled for
payment over a 20 -year period beginning in the fiscal year ended 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
ended June 30, 2002, with interest at 7.7654 percent.
See independent auditors' report.
54
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #5 — LONG-TERM DEBT (continued)
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 began maturing in installments each December
2nd, commencing December 2, 2004. Interest accrues at a rate of 5 percent per
annum and is payable in arrears each June 2nd and December 2nd.
Additionally, both the accrued interest and deferred interest on the $10,000,000
Loan previously owed the County was retroactively recalculated from the Loan
origination date at a rate of approximately 5 percent compared to 7.7654 percent
per the original Agreement. The recalculated deferred interest was $3,111,400.
In accordance with the MOU, the recalculated deferred interest does not accrue
additional interest. As of June 30, 2009, a total of $1,620,491 in accumulated tax
increment has been applied against this balance, including $294,627 applied
during fiscal year 2008-09. The remaining balance at June 30, 2009, was
$1,490,909. 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, 2009.
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
See independent auditors' report.
55
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #5 — LONG-TERM DEBT (continued)
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 Ending
June 30,
Principal
Interest
Total
2010
65,000
265,125
330,125
2011
85,000
260,375
345,375
2012
100,000
255,750
355,750
2013
120,000
250,250
370,250
2014
135,000
243,875
378,875
2015-2019
1,020,000
1,087,500
2,107,500
2020-2024
1,730,000
748,250
2,478,250
2025-2028
2,060,000
216,750
2,276,750
Totals
5,315,000
3,327,875
8,642,875
B. Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences.
Based on historical trends, $232,908 is estimated to be the amount that will be
used and/or paid out during fiscal year 2009-10.
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, Net of Related Debt
This category groups all capital assets, including infrastructure, into one
component of net assets. Accumulated depreciation on these assets reduces this
See independent auditors' report.
56
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
(continued)
category as does any outstanding balance on debt incurred in acquiring or
constructing the capital assets.
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, 2009 are
presented below, followed by explanations of the nature and purpose of each
reserve and designation.
Reserved:
Reimbursement settlement
agreement
Advances to other funds
Prepaid items
Land held for development
Housing set-aside
Habitat restoration
Totals Reserved
Designated:
Continuing Appropriations:
General fund
Special revenue funds
Capital projects funds
Totals Designated
Street RDA Debt Capital Other
General Maintenance Service Improvement Governmental
Fund Fund Fund Fund Funds
$ - $ - $ - $ - $ 1,000,000
6,219,545 - - - -
94,175 - 541,115 - 20,359
- - - - 702,392
- - - - 1,365,359
- - - - 43,741
$6,313,720 $ - $ 541,115 $ - $ 3,131,851
$1,333,300 $ - $ - $ - $ -
- 204,000 - - 206,633
- - - 5,682,803 759,368
$1,333,300 $ 204,000 $ - $ 5,682,803 $ 966,001
See independent auditors' report.
57
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
(continued)
A. Reserved for Reimbursement Settlement Agreement
This reserve has been established under the legal requirements of the
Reimbursement Settlement Agreement (see Note #5).
B. Reserved for Advances to Other Funds
This reserve represents the long-term portion of loans from the City's General
Fund to the RDA less $10,667,427 recorded as deferred revenue (see Note #11).
C. Reserved for Prepaid Items
This reserve is provided to indicate that the asset carrying value is not available
to spend to meet expenditures of the current year.
D. Reserved for Land Held for Development
These funds are reserved for land purchased by the City to be sold or otherwise
used for the development of low and moderate -income housing.
E. Reserved for Housing Set -Aside
These funds are reserved for low and moderate -income housing as restricted by
law or administrative action.
F. Reserved for Habitat Restoration
These funds are reserved as required by the City's Natural Community
Conservation Plan to provide for future habitat restoration in the City's open
space preserve.
G. Designated for Continuing Appropriations
These designations are maintained for current year budget appropriations that
are formally carried over into the subsequent fiscal year.
See independent auditors' report.
58
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #7 — PENSION PLAN
Plan Description
The City provides a defined benefit pension plan that includes retirement and
disability benefits, annual cost -of -living adjustments, and death benefits to plan
members and beneficiaries. The City participates in the Miscellaneous 2.5% at
55 Risk Pool of the California Public Employee's Retirement System (CalPERS),
a cost-sharing, multi-employer public employee defined benefit pension plan
administered by CalPERS. CalPERS provides retirement and disability benefits,
annual cost -of -living adjustments, and death benefits to plan members and
beneficiaries. State statutes, within the Public Employees' Retirement Law,
establish benefit provisions and other requirements. The City selects optional
benefit provisions from the benefit menu by contract with CalPERS and adopts
those benefits through local ordinance. Copies of the CalPERS annual financial
report may be obtained from the CalPERS Executive Office at 400 P Street,
Sacramento, California 95814 or downloaded from their website at
www.calpers.gov.
Funding Policy
The contribution requirements of plan members are established by State statute
and the employer contribution rate is established and amended by CalPERS.
Active City employees are required to contribute 8% of their annual covered
salary. The City pays 6.5% of the contribution for all the full-time positions, and
1% of the contribution for part-time employees. The City is required to contribute
the actuarially determined remaining amounts necessary to fund the benefits for
its members. The FY08-09 rate was 15.275% of covered payroll. The City's
contributions to CalPERS for the years ending June 30, 2009, 2008 and 2007
were $1,508,304, $747,183 and $631,220, respectively, and were equal to the
required contribution for each year.
As a result of having less than 100 active members as of June 30, 2003, the City
was required to participate in a risk pool. The City's pooled employer contribution
rate is the same as the stand-alone employer contribution rate. At the time of
joining the mandatory pooled plan, CalPERS 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 CalPERS.
See independent auditors' report.
59
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION
Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority (CJPIA).
The CJPIA is comprised of 122 California public entities and is organized under a
joint powers agreement pursuant to California Government Code section 6500 et
seq. The purpose of the CJPIA is to arrange and administer programs for the
pooling of self-insured losses, to purchase excess insurance or reinsurance, and
to arrange for group -purchased insurance for property and other coverage. The
CJPIA pool began covering claims of its members in 1978. Each member
government has an elected official as its representative on the Board of
Directors. The Board operates through a 9 -member Executive Committee.
Self -Insurance Programs of the CJPIA
General Liability
Each member government pays a primary deposit to cover estimated losses for a
fiscal year (claims year). After the close of a fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims
year. Costs are spread to members as follows: the first $30,000 of each
occurrence is charged directly to the member's primary deposit; costs from
$30,000 to $750,000 and the loss development reserves associated with losses
up to $750,000 are pooled based on the member's share of losses under
$307000. Losses from $750,000 to $2,000,000 and the associated loss
development reserves are pooled based on payroll. Costs of covered claims from
$2,000,000 to $50,000,000 are currently paid by excess insurance subject to a
$3,000,000 annual aggregate deductable and a quota -sharing agreement
whereby CJPIA is financially responsible for 40% of losses occurring within the
$2,000,000 to $10,000,000 layer. Costs of covered claims for subsidence losses
are paid by excess insurance with $25,000,000 sub -limits per member per
occurrence and a $15,000,000 annual aggregate. The overall protection for each
member is $50,000,000 per occurrence. Administrative expenses are paid from
CJPIA investment earnings.
Workers' Compensation
The City also participates in the workers' compensation pool administered by
CJPIA. Each member pays a primary deposit to cover estimated losses for a
See independent auditors' report.
60
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION (continued)
fiscal year (claims year). After the close of the fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims
year. Each member has a retention level of $50,000 for each loss and this is
charged directly to the member's primary deposit. Losses from $50,000 to
$100,000 and the loss development reserve associated with losses up to
$100,000 are pooled based on the member's share of losses under $50,000.
Losses from $100,000 to $2,000,000 and the loss development reserves
associated with those losses are pooled based on payroll. Losses from
$2,000,000 up to statutory limits are paid under an excess insurance policy.
Administrative expenses are paid from CJPIA investment earnings.
Employer's Liability losses are pooled among members to $2,000,000, coverage
from $2,000,000 to $4,000,000 is purchased as part of an excess insurance
policy, and losses from $4,000,000 to $10,000,000 are pooled among members.
Purchased Insurance
Environmental Insurance
The City participates in the pollution legal liability and remediation legal liability
insurance, which is available through CJPIA. The policy covers sudden and
gradual pollution of scheduled property, streets, and storm drains owned by the
City. Coverage is on a claims -made basis. There is a $50,000 deductible. The
CJPIA has a limit of $50,000,000 for the 3 -year period from July 1, 2008 through
July 1, 2011. Each member of the CJPIA has a $10,000,000 limit during the 3 -
year term of the policy.
Property Insurance
The City participates in the all-risk property protection program of the CJPIA. This
insurance protection is underwritten by several insurance companies. The City's
property is currently insured according to a schedule of covered property
submitted by the City to the CJPIA. The City currently has all-risk property
insurance protection in the amount of $12,469,951. There is a $5,000 deductible
per occurrence except for non -emergency vehicle insurance which has a $1,000
deductible. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
See independent auditors' report.
61
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION (continued)
Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property.
The earthquake insurance is part of the property protection insurance program of
the CJPIA. The City's property currently has earthquake protection in the amount
of $12,437,404. There is a deductible of 5% of value with a minimum deductible
of $100,000. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a
$2,500 deductible. The fidelity coverage is provided through CJPIA. Premiums
are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of
certain property to purchase low-cost tenant user liability insurance for certain
activities on City property. The insurance premium is paid by the tenant user and
is paid to the City according to a schedule. The City then pays for the insurance.
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, 2009.
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
See independent auditors' report.
62
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #9 — CONTINGENCIES AND COMMITMENTS (continued)
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 citywide emergency repairs were
required, including those to repair sinkholes along Western Avenue. The City
received reimbursement from the Federal Emergency Management Agency in
the amount of approximately $1.2 million. Of that amount, $274,430 is currently
reserved in the Capital Improvement Projects 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.
The repairs of the sinkholes, noted above, 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.
Building Moratorium
There is longstanding building moratorium in the landslide area of the City.
Several landowners with parcels in this area filed a lawsuit claiming an
unconstitutional taking of their property due to the building moratorium and the
City's adoption in 2002 of a safety standard that must be satisfied before
development could occur in this area. The landowners claim that the City has
made it impossible for them to satisfy the exception to the moratorium that would
allow development of the parcels.
Judgment was entered for the City after a three-month trial in the Superior Court.
However, the California Court of Appeal reversed the trial court's decision. The
landowners are seeking a trial on the issue of damages, which they assert
exceed $32 million. The trial is currently scheduled for February 2010. The City
has repealed the resolution that was adopted in 2002 and intends to demonstrate
to the court that it has adopted a reasonable process to enable development of
the parcels in question; which is designed to negate the plaintiffs' claims for
monetary damages.
See independent auditors' report.
63
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #9 — CONTINGENCIES AND COMMITMENTS (continued)
Supplemental Educational Revenue Augmentation Funds Contributions for the
Fiscal Years 2009-2010 and 2010-2011
Pursuant to AB 26 4x, a budget trailer bill, California redevelopment agencies
were required to make SERAF contributions totaling $ 1.7 billion for the fiscal
year 2009-2010 and $ 350 million for the fiscal year 2010-2011. Under AB 26 4x,
agencies may borrow a portion of the required contributions from their low and
moderate income housing fund. Alternatively, sponsoring governmental agencies
(the cities or counties) may elect to pay the SERAF contributions on behalf of
their redevelopment agencies. On October 20, 2009, the CRA filed a class action
lawsuit in behalf of all California redevelopment agencies, challenging the
SERAF obligations as unconstitutional.
The Agency's prposed SERAF contributions under AB 26 4x are $330,125 for the
fiscal year 2009-2010 and approximately $68,000 for 2010-2011. It is the position
of Agency officials that the SERAF contributions required by AB 26 4x are
unconstitutional, and that the Agency is not obligated to make these
contributions. However, if the class action lawsuit is unsuccessful, and if the
Agency were required to make these SERAF contributions, Agency officials have
estimated that the Agency would have sufficient funds to make the required
contributions.
NOTE #10 — PROPERTY TAXES
Under California law, property taxes are assessed and collected by the counties
up to one percent of assessed value, plus other increases approved by the
voters. The property taxes go into a pool, and are then allocated to the cities
based on complex formulas. Accordingly, the City accrues only those taxes,
which are received from the county within sixty days after year-end.
Lien date
Levy date
Due date
Collection dates
NOTE #11— DEFERRED REVENUES
January 1
June 30
November 1 and February
December 10 and April 10
The deferred revenues in the fund financial statements of the City of Rancho
Palos Verdes as of June 30, 2009 consisted of the following:
See independent auditors' report.
64
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #11— DEFERRED REVENUES (continued)
General Fund:
Accrued interest from long-term advance to the RDA $ 10,667,427
Advance on federal grant 108,034
Revenue earned but not available 97,465
Cash on deposit for the Del Cerro lighting district 957
Capital Improvements Projects Fund:
Advance on local grant
Other Governmental Funds -
Long -term notes receivable offset (loans expended when made) 388,629
Total Deferred Revenues 11.262.512
NOTE #12 — LAND HELD FOR DEVELOPMENT
On March 21, 2000, the Agency purchased approximately 20 acres of land to be
used for an affordable housing project. The total cost of the land was $702,392.
The Agency has recorded the cost of the land as an asset in the RDA Housing
Set -Aside special revenue fund that purchased the property.
A developer submitted an application for a senior condominium housing project
with an affordable housing component. The project was planned to utilize a
parcel owned by the Agency and a neighboring private parcel. The developer
withdrew the application, and currently the property owner of the neighboring
private parcel is moving forward with a senior condominium project on only that
parcel. In September 2007, the City/Agency made a decision to move forward
with development of only the Agency parcel with a senior affordable housing
project. In September 2008, the Agency entered into an Exclusive Negotiating
Agreement with AMCAL: Multi -Housing Inc. On March 3, 2009, the City
Council/Agency Board approved AMCAL's proposed 34 -unit senior affordable
housing project, which includes 33 rental units of affordable housing and 1
market rate rental unit for an on-site manager. On March 17, 2009, the Agency
approved a Disposition and Development Agreement (DDA) with AMCAL. In
September 2009 the project was awarded Tax Credits from the California Tax
Credit Allocation Committee, which will be an important funding source for the
project. Per the DDA, the Agency anticipates transferring the Agency's land to
the developer for construction of the proposed senior affordable housing project
in December 2009. The fund balance in the RDA Housing Set -Aside fund has
been reserved for an amount equal to the purchase price of the land. Remaining
funds in the RDA Housing Set -Aside fund will be used towards the development
of this project, as well as other affordable housing.
See independent auditors' report.
65
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE #13 — OTHER REQUIRED FUND DISCLOSURES
The following funds had deficit fund balances as of June 30, 2009:
Major Fund:
RDA Debt Service Fund
Other Governmental Fund:
CDBG
Rancho Palos Verdes TV Channel
$16,283,294
6
4,714
The City plans to finance those fund deficits through future revenues and
transfers from other funds.
See independent auditors' report.
66
SUPPLEMENTARY INFORMATION
67
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY DEBT SERVICE FUND
For the year ended June 30, 2009
REVENUES:
Taxes
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Current:
Administration
Pass through to other agencies
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 826,800
$ 826,800
$ 900,840
$ 74,040
-
-
222
222
826,800
826,800
901,062
74,262
13,900
13,900
18,509
(4,609)
175,700
175,700
187,211
(11,511)
382,975
382,975
349,627
33,348
1,153,084
1,153,084
1,100,566
52,518
1,725,659
1,725,659
1,655,913
69,746
(898,859)
(898,859)
(754,851)
144,008
(15,528,443)
(15,528,443)
(15,528,443)
$ (16,427,302)
$ (16,427,302)
$ (16,283,294)
$ 144,008
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, 2009
See independent auditors' report.
we
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 21,200
$ 21,200
$ 45,986
$ 24,786
Revenue from other agencies
252,000
892,620
658,198
(234,422)
TOTAL REVENUES
273,200
913,820
704,184
(209,636)
EXPENDITURES:
Capital outlay
3,008,772
2,262,081
1,501,477
760,604
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(2,735,572)
(1,348,261)
(797,293)
550,968
OTHER FINANCING SOURCES:
Transfers in
2,524,942
6,521,942
4,608,507
(1,913,435)
NET CHANGE IN FUND BALANCE
(210,630)
5,173,681
3,811,214
(1,362,467)
FUND BALANCE - BEGINNING OF YEAR
3,395,966
3,395,966
3,395,966
FUND BALANCE - END OF YEAR
$ 3,185,336
$ 8,569,647
$ 7,207,180
$ (1,362,467)
See independent auditors' report.
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a
CITY OF RANCHO PALOS VERDES
JUNE 30, 2009
NONMAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions
Special Revenue Funds are used to account for taxes and other revenues set
aside in accordance with law or administrative regulation for a specific purpose.
Air Quality Management — to account for AB2766 fees received to fund programs
to reduce air pollution from motor vehicles.
Community Development Block Grant (CDBG) — to account for Federal Grants
received from the Department of Housing and Urban Development (HUD).
EI Prado — to account for taxes collected to maintain and service existing and
proposed improvements to the common area of the EI Prado neighborhood.
Redevelopment Agency Housing Set -Aside — to account for the portion of
Redevelopment tax increment monies which is a requirement under California
Redevelopment Law, Section 33334, to be set-aside for the development of low
and moderate income housing.
Proposition A — to account for the City share of an additional one-half percent
sales tax designated to fund certain public transportation orientated projects.
Proposition C — to account for sales taxes received from the County and used to
support public transit and related services.
Beautification — to account for monies received for the City's recycling program
used for community improvement, grants and promotion of recycling.
Waste Reduction — to account for AB939 fees received for state mandated waste
reduction and recycling plans and programs.
Public Safety Grants — to account for federal grant funds for local law
enforcement supplemental services, AB3229 funds used for additional law
enforcement services and public safety technology equipment.
1972 Act Landscaping and Lighting District (1972 Act) — to account for revenues
and costs associated with the City's landscaping and lighting district.
1911 Act Lighting District (1911 Act) — to account for revenue and costs
associated with a lighting district transferred to the "city -side" landscape and
lighting district from the County in 1995.
71
CITY OF RANCHO PALOS VERDES
JUNE 30, 2009
NONMAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions (continued)
Joint Powers Improvement Authority - Portuguese Bend — to account for
maintenance and repairs of landslide abatement improvements in the
Portuguese Bend Project area.
Habitat Restoration — to account for fees paid by developers for conservation
easements to be used exclusively for habitat restoration efforts on City owned
property.
Subregion One Maintenance — to account for monies used to maintain public
improvements and habitat areas dedicated to the City upon completion of the
Subregion One residential development project also known as Oceanfront
Estates.
Measure A — to account for the voter approved 1992 and 1996 Measure A funds
and other state and county grants used for the acquisition of open space and
park improvements.
Abalone Cove Sewer Assessment District — to account for property assessments
used to partially pay for operation and maintenance of the Abalone Cove sewer
system.
Rancho Palos Verdes TV Channel — to account for donations and General Fund
subsidies used to operate the City's cable television channel.
Dr. Allen and Charlotte Ginsburg Cultural Arts Building(Ginsburg Cultural Art
Bldg) — to account for a private donation to be used for either construction of a
building at the Upper Point Vicente Civic Center to be used for dancing and other
cultural activities, or for the purchase of open space within the City for habitat
conservation and passive recreational purposes.
Donor Restricted Contributions — to account for donations received to construct
or acquire recreational facilities within the City.
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 that are used for the construction of
bikeways and pedestrian facilities.
72
CITY OF RANCHO PALOS VERDES
JUNE 30, 2009
NONMAJOR GOVERNMENTAL FUNDS
Capital Projects Funds Descriptions (continued)
Redevelopment Agency - Abalone Cove — to account for monies used for
landslide abatement in the Abalone Cove area of the Redevelopment Agency
Project Area.
Environmental Excise Tax — to account for taxes received in connection with new
construction within the City.
Quimby — to account for developer paid fees or the dedication of land for park
and recreation purposes.
Affordable Housing — to account for developer paid in -lieu fees for the City to
construct low and moderate income housing.
Redevelopment Agency - Portuguese Bend — to account for monies used for
landslide abatement in the Portuguese Bend area of the Redevelopment Agency
Project Area.
Utility Undergrounding — to account for the accumulation of monies transferred
from the General fund, to be used for relocating utility poles and lines on arterial
roadways underground, and provide residents assistance with utility
undergrounding in residential areas of the City.
Roadway Beautification — to account for the accumulation of monies transferred
from the General and Recycling funds to be used for landscape improvements
along the City's roadways.
Permanent Fund Descriation
Permanent Funds are used to account for resources legally restricted to the
extent that only earnings, and not principal, may be used for purposes that
support the City's programs.
Joint Powers Improvement Authority - Abalone Cove — to account for monies
received as part of a July 1991 Reimbursement and Settlement Agreement with
the County of Los Angeles. As a part of this agreement the Authority received a
$1,000,000 deposit of nonexpendable principal. The interest earnings are used
to pay for maintenance and repair of Abalone Cove landslide abatement
improvements.
73
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2009
See independent auditors' report
74
Special Revenue Funds
Redevelopment
Air
Agency
Quality
Housing
Management
CDBG
El Prado
Set -Aside
ASSETS
Cash and cash equivalents
$
39,270
$
-
$
11,081
$
1,357,928
Receivables:
Taxes
-
-
84
3,922
Interest
74
-
30
4,454
Notes
-
388,629
-
-
Other
13,432
57,309
-
-
Prepaid items
-
-
-
-
Land held for development
-
-
-
702,392
TOTAL ASSETS
52,776
445,938
11,195
2,068,696
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities
$
-
$
5,937
$
57
$
945
Due to other funds
-
51,378
-
-
Deferred revenue
-
388,629
-
-
TOTAL LIABILITIES
-
445,944
57
945
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement
-
-
-
-
Prepaid items
-
-
-
-
Land held for development
-
-
-
702,392
Housing set-aside
-
-
-
1,365,359
Habitat restoration
-
-
-
-
Unreserved:
Designated for continuing
appropriations:
Special revenue funds
-
-
-
-
Capital projects funds
-
-
-
-
Undesignated reported in:
Special revenue funds
52,776
(6)
11,138
-
Capital projects funds
-
-
-
-
Permanent funds
-
-
-
-
TOTALFUND
BALANCES (DEFICIT)
52,776
(6)
11,138
2,067,751
TOTAL LIABILITIES
AND FUND BALANCES
52,776
445,938
11,195
2,068,696
See independent auditors' report
74
Special Revenue Funds (Continued)
$ 125 $
126 $
35,492 $
33,962 $
Public
126
125
Waste
Safety
Proposition A
Proposition C
Beautification
Reduction
Grants
1972 Act
$ 197,388
$ 2,558,650
$ 1,351,728
$ 178,626
$ 9,278
$ 54,323
-
-
-
-
-
4,752
431
6,475
3,563
606
262
564
-
-
47,452
28,835
25,000
-
$ 197,819
$ 2,565,125
$ 1,402,743
$ 208,067
$ 34,540
$ 59,639
$ 125 $
126 $
35,492 $
33,962 $
126
125
35,492
33,962
- $
980
980
- - 11,000 60,000 33,633 -
197,694 2,564,999 1,356,251 114,105 907 58,659
197,694 2,564,999 1,367,251 174,105 34,540 58,659
$ 197,819 $ 2,565,125 $ 1,402,743 $ 208,067 $ 34,540 $ 59,639
(Continued)
75
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2009
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities $ 56,874 $ 7,061 $ 54,119 $ 7,644
Due to other funds - - - -
Deferred revenue - - - -
TOTAL LIABILITIES 56,874 7,061 54,119 7,644
FUND BALANCES:
Special Revenue Funds (Continued)
Reimbursement settlement
Joint Powers
- - -
Prepaid items -
- - -
Land held for development -
Improvement
Housing set-aside -
Subregion
Habitat restoration -
- 43,741 -
Authority
Habitat
One
1911 Act
Portuguese Bend
Restoration
Maintenance
ASSETS
- - -
Undesignated reported in:
Special revenue funds 1,632,607
Cash and cash equivalents
$ 1,662,300
$ 238,158
$ 278,873
$ 773,101
Receivables:
BALANCES (DEFICIT) 1,632,607
231,613 225,180 767,336
TOTAL LIABILITIES
Taxes
22,653
-
-
-
Interest
4,528
516
426
1,879
Notes
-
-
-
-
Other
-
-
-
-
Prepaid items
-
-
-
-
Land held for development
-
-
-
-
TOTAL ASSETS
1,689,481
238,674
279,299
774,980
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities $ 56,874 $ 7,061 $ 54,119 $ 7,644
Due to other funds - - - -
Deferred revenue - - - -
TOTAL LIABILITIES 56,874 7,061 54,119 7,644
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement -
- - -
Prepaid items -
- - -
Land held for development -
- - -
Housing set-aside -
- - -
Habitat restoration -
- 43,741 -
Unreserved:
Designated for continuing
appropriations:
Special revenue funds -
- 70,000 -
Capital projects funds -
- - -
Undesignated reported in:
Special revenue funds 1,632,607
231,613 111,439 767,336
Capital projects funds -
- - -
Permanent funds -
- - -
TOTALFUND
BALANCES (DEFICIT) 1,632,607
231,613 225,180 767,336
TOTAL LIABILITIES
AND FUND BALANCES 1,689,481
238,674 279,299 774,980
See independent auditors' report
We
Special Revenue Funds (Continued)
$ - $ 33,800 $ 27,944 $ - $ - $ 265,066
50,846 - - - - 102,224
- - - - - 388,629
50,846 33,800 27,944 - - 755,919
- - 3,051 - - 3,051
- - - - - 702,392
- - - - - 1,365,359
- - - - - 43,741
- 32,000 - - - 206,633
33,928 61,594 (7,765) 500,503 2,082 7,689,860
33,928 93,594 (4,714) 500,503 2,082 10,011,036
$ 84,774 $ 127,394 $ 23,230 $ 500,503 $ 2,082 $ 10,766,955
(Continued)
77
Dr. Allen and
Abalone Cove
Rancho
Charlotte
Total
Sewer
Palos
Ginsburg
Donor
Special
Assessment
Verdes
Cultural
Restricted
Revenue
Measure A
District
TV Channel
Arts Building
Contributions
Funds
$ 7,440
$ 125,884
$ 20,179
$ 499,196
$ 2,077
$ 9,365,480
-
1,210
-
-
-
32,621
89
300
-
1,307
5
25,509
-
-
-
-
-
388,629
77,245
-
-
-
-
249,273
-
-
3,051
-
-
3,051
-
-
-
-
-
702,392
$ 84,774
$ 127,394
$ 23,230
$ 500,503
$ 2,082
$ 10,766,955
$ - $ 33,800 $ 27,944 $ - $ - $ 265,066
50,846 - - - - 102,224
- - - - - 388,629
50,846 33,800 27,944 - - 755,919
- - 3,051 - - 3,051
- - - - - 702,392
- - - - - 1,365,359
- - - - - 43,741
- 32,000 - - - 206,633
33,928 61,594 (7,765) 500,503 2,082 7,689,860
33,928 93,594 (4,714) 500,503 2,082 10,011,036
$ 84,774 $ 127,394 $ 23,230 $ 500,503 $ 2,082 $ 10,766,955
(Continued)
77
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2009
See independent auditors' report
78
Capital Projects Funds
Redevelopment
Agency
Abalone
Environmental
Bikeways
Cove
Excise Tax
Quimby
ASSETS
Cash and cash equivalents
$
1,998
$
6,149
$ 852,397
$
25,105
Receivables:
Taxes
-
-
-
-
Interest
57
22
2,214
65
Notes
-
-
-
-
Other
2,071
-
-
-
Prepaid items
-
-
-
-
Land held for development
-
-
-
-
TOTAL ASSETS
4,126
6,171
854,611
25,170
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities
$
-
$
-
$ 15,318
$
-
Due to other funds
4,126
-
-
-
Deferred revenue
-
-
-
-
TOTAL LIABILITIES
4,126
-
15,318
-
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement
-
-
-
-
Prepaid items
-
-
-
-
Land held for development
-
-
-
-
Housing set-aside
-
-
-
-
Habitat restoration
-
-
-
-
Unreserved:
Designated for continuing
appropriations:
Special revenue funds
-
-
-
-
Capital projects funds
-
-
92,000
-
Undesignated reported in:
Special revenue funds
-
-
-
-
Capital projects funds
-
6,171
747,293
25,170
Permanent funds
-
-
-
-
TOTALFUND
BALANCES (DEFICIT)
-
6,171
839,293
25,170
TOTAL LIABILITIES
AND FUND BALANCES
4,126
6,171
854,611
25,170
See independent auditors' report
78
$ - $ 105 $ - $ - $ 15,423 $ 3,159 $ 283,648
- - - - 4,126 - 106,350
- - - - - - 388,629
- 105 - - 19,549 3,159 778,627
- - - - - 1,000,000 1,000,000
- 17,308 - - 17,308 - 20,359
- - - - - - 702,392
- - - - - - 1,365,359
- - - - - - 43,741
- - - - - - 206,633
667,368 - - - 759,368 - 759,368
- - - - - - 7,689,860
170,965 523,733 273,770 101,553 1,848,655 - 1,848,655
- - - - - 362,231 362,231
838,333 541,041 273,770 101,553 2,625,331 1,362,231 13,998,598
$ 838,333 $ 541,146 $ 273,770 $ 101,553 $ 2,644,880 $ 1,365,390 $ 14,777,225
79
Capital Projects Funds (Continued)
Permanent Fund
Redevelopment
Total
Joint Powers
Total
Agency
Capital
Improvement
Other
Affordable
Portuguese
Utility
Roadway
Projects
Authority
Governmental
Housing
Bend
Undergrounding
Beautification
Funds
Abalone Cove
Funds
$ 836,166
$ 522,131
$ 273,063
$ 101,291
$ 2,618,300
$ 1,360,974
$ 13,344,754
-
-
-
-
-
-
32,621
2,167
1,707
707
262
7,201
4,416
37,126
-
-
-
-
-
-
388,629
-
-
-
-
2,071
-
251,344
-
17,308
-
-
17,308
-
20,359
-
-
-
-
-
-
702,392
$ 838,333
$ 541,146
$ 273,770
$ 101,553
$ 2,644,880
$ 1,365,390
$ 14,777,225
$ - $ 105 $ - $ - $ 15,423 $ 3,159 $ 283,648
- - - - 4,126 - 106,350
- - - - - - 388,629
- 105 - - 19,549 3,159 778,627
- - - - - 1,000,000 1,000,000
- 17,308 - - 17,308 - 20,359
- - - - - - 702,392
- - - - - - 1,365,359
- - - - - - 43,741
- - - - - - 206,633
667,368 - - - 759,368 - 759,368
- - - - - - 7,689,860
170,965 523,733 273,770 101,553 1,848,655 - 1,848,655
- - - - - 362,231 362,231
838,333 541,041 273,770 101,553 2,625,331 1,362,231 13,998,598
$ 838,333 $ 541,146 $ 273,770 $ 101,553 $ 2,644,880 $ 1,365,390 $ 14,777,225
79
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2009
Special Revenue Funds
Redevelopment
Air Agency
Quality Housing
Management CDBG El Prado Set -Aside
REVENUES:
Taxes $ - $ - $ 1,827 $ 220,201
Use of money and property 455 - 173 27,391
Revenue from other agencies 50,124 113,021 - -
Other revenues - - - -
TOTAL REVENUES 50,579 113,021 2,000 247,592
EXPENDITURES:
Current:
Administration - - - -
Public safety - - - -
Public works 50,000 - 434 -
Planning, building and
code enforcement - - - 308,806
Capital outlay - 92,364 - 432,094
TOTAL EXPENDITURES 50,000 92,364 434 740,900
EXCESS (DEFICIENTY)
OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN
FUND BALANCES
FUND BALANCES (DEFICIT) -
579 20,657 1,566 (493,308)
- (20,646) - -
- (20,646) - -
579 11 1,566 (493,308)
BEGINNING OF YEAR 52,197 (17) 9,572 2,561,059
FUND BALANCES (DEFICIT) -
END OF YEAR $ 52,776 $ (6) $ 11,138 $ 2,067,751
See independent auditors' report.
901
Special Revenue Funds (Continued)
-
-
-
-
Public
-
635,047
6,095
168,226
Waste
Safety
67,661
Proposition A
Proposition C
Beautification
Reduction
Grants
1972 Act
$ -
$ -
$ -
$ -
$ -
$ 257,138
2,351
36,944
22,672
4,582
1,625
1,877
621,569
557,794
-
134,546
100,000
-
-
-
198,398
-
-
-
623,920
594,738
221,070
139,128
101,625
259,015
-
-
-
-
32,285
-
635,047
6,095
168,226
284,573
-
67,661
67,661
635,047
6,095
168,226
284,573
32,285
(11,127)
588,643
52,844
(145,445)
69,340
191,354
(15,150)
-
(12,784)
-
(100,000)
(180,000)
(15,150)
-
(12,784)
-
(100,000)
(180,000)
(26,277)
588,643
40,060
(145,445)
(30,660)
11,354
223,971
1,976,356
1,327,191
319,550
65,200
47,305
$ 197,694
$ 2,564,999
$ 1,367,251
$ 174,105
$ 34,540 $
58,659
(Continued)
81
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2009
See independent auditors' report.
W
Special Revenue Funds (Continued)
Joint Powers
Improvement
Subregion
Authority
Habitat
One
1911 Act
Portuguese Bend
Restoration
Maintenance
REVENUES:
Taxes $
492,705Use
of money and property
27,552
3,969
2,585
12,331
Revenue from other agencies
-
-
-
-
Other revenues
-
-
6,528
-
TOTAL REVENUES
520,257
3,969
9,113
12,331
EXPENDITURES:
Current:
Administration
-
-
-
-
Public safety
-
-
-
-
Public works
402,551
82,253
124,687
50,755
Planning, building and
code enforcement
-
-
-
-
Capital outlay
-
-
7,503
-
TOTAL EXPENDITURES
402,551
82,253
132,190
50,755
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
117,706
(78,284)
(123,077)
(38,424)
OTHER FINANCING SOURCES (USES):
Transfers in
-
82,252
115,000
55,000
Transfers out
(76,800)
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
(76,800)
82,252
115,000
55,000
NET CHANGE IN
FUND BALANCES
40,906
3,968
(8,077)
16,576
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
1,591,701
227,645
233,257
750,760
FUND BALANCES (DEFICIT) -
END OF YEAR $
1,632,607
$ 231,613
$ 225,180
$ 767,336
See independent auditors' report.
W
Special Revenue Funds (Continued)
-
-
101,089
Dr. Allen and
-
101,089
-
Abalone Cove
Rancho
Charlotte
-
Total
-
Sewer
Palos
Ginsburg
Donor
Special
-
Assessment
Verdes
Cultural
Restricted
Revenue
Measure A
District
TV Channel
Arts Building
Contributions
Funds
$ -
$ 44,321
$ -
$ -
$ -
$ 1,016,192
1,478
2,021
192
8,458
34
156,690
98,945
-
-
-
-
1,675,999
-
7,829
-
-
-
212,755
100,423
54,171
192
8,458
34
3,061,636
-
-
101,089
-
-
101,089
-
-
-
-
-
32,285
-
50,355
-
-
-
1,922,637
-
-
-
-
-
308,806
-
38,635
-
-
-
570,596
-
88,990
101,089
-
-
2,935,413
100,423
(34,819)
(100,897)
8,458
34
126,223
-
10,700
54,590
-
-
317,542
(75,900)
-
-
-
-
(481,280)
(75,900)
10,700
54,590
-
-
(163,738)
24,523
(24,119)
(46,307)
8,458
34
(37,515)
9,405
117,713
41,593
492,045
2,048
10,048,551
$ 33,928 $
93,594
$ (4,714) $
500,503 $
2,082
$ 10,011,036
(Continued)
83
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2009
See independent auditors' report.
:11
Capital Projects Funds
Redevelopment
Agency
Abalone
Environmental
Bikeways
Cove
Excise Tax
Quimby
REVENUES:
TaxesUse
of money and property
174
119
14,237
416
Revenue from other agencies
24,630
-
-
-
Other revenues
-
-
59,111
-
TOTAL REVENUES
24,804
119
73,348
416
EXPENDITURES:
Current:
Administration
-
-
-
-
Public safety
-
-
-
-
Public works
-
-
-
-
Planning, building and
code enforcement
-
-
-
-
Capital outlay
-
-
58,278
-
TOTAL EXPENDITURES
-
-
58,278
-
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
24,804
119
15,070
416
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
Transfers out
(30,002)
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
(30,002)
-
-
-
NET CHANGE IN
FUND BALANCES
(5,198)
119
15,070
416
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR
5,198
6,052
824,223
24,754
FUND BALANCES (DEFICIT) -
END OF YEAR $
-
$ 6,171
$ 839,293
$ 25,170
See independent auditors' report.
:11
- - - - -
Capital Projects Funds (Continued)
- - - - -
Permanent Fund
- 17,934 - - 17,934
35,132 1,975,703
2,516 - - - 2,516
- 311,322
328,916 - - - 387,194
- 957,790
Redevelopment
35,132 3,378,189
Total
Joint Powers
Total
$ 541,041 $
Agency
$ 101,553
Capital
Improvement
Other
Affordable
Portuguese
Utility Roadway
Projects
Authority
Governmental
Housing
Bend
Undergrounding Beautification
Funds
Abalone Cove
Funds
$ -
$ -
$ - $ -
$ -
$ -
$ 1,016,192
14,534
9,712
4,529 1,678
45,399
26,082
228,171
-
-
- -
24,630
-
1,700,629
-
50,004
- -
109,115
-
321,870
14,534
59,716
4,529 1,678
179,144
26,082
3,266,862
- - - - -
- 101,089
- - - - -
- 32,285
- 17,934 - - 17,934
35,132 1,975,703
2,516 - - - 2,516
- 311,322
328,916 - - - 387,194
- 957,790
331,432 17,934 - - 407,644
35,132 3,378,189
(316,898) 41,782 4,529 1,678 (228,500) (9,050) (111,327)
(316,898) 41,782
- (30,002)
- (30,002)
- 317,542
- (511,282)
- (193,740)
4,529 1,678 (258,502) (9,050) (305,067)
1,155,231
499,259
269,241
99,875
2,883,833
1,371,281
14,303,665
$ 838,333
$ 541,041 $
273,770
$ 101,553
$ 2,625,331
$ 1,362,231
$ 13,998,598
85
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AIR QUALITY MANAGEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2009
REVENUES:
Use of money and property
Revenue from other agencies
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 1,310 $ 1,310 $ 455 $ (855)
50,000 50,000 50,124 124
51,310 51,310 50,579 (731)
50,000 50,000 50,000 -
1,310 1,310 579 (731)
52,197 52,197 52,197 -
$ 53,507 $ 53,507 $ 52,776 $ (731)
::
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, 2009
See independent auditors' report.
87
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Revenue from other agencies
$ 188,908
$ 188,908
$ 113,021
$ (75,887)
EXPENDITURES:
Capital outlay
168,262
168,262
92,364
75,898
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
20,646
20,646
20,657
11
OTHER FINANCING USES:
Transfers out
(20,646)
(20,646)
(20,646)
-
NET CHANGE IN FUND BALANCE
-
-
11
11
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
(17)
(17)
(17)
FUND BALANCE (DEFICIT) - END OF YEAR
$ (17)
$ (17)
$ (6)
S 11
See independent auditors' report.
87
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, 2009
REVENUES:
Taxes
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 1,820 $ 1,820
210 210
2,030 2,030
900 900
Variance with
Final Budget
Positive
Actual (Negative)
$ 1,827 $ 7
173 (37)
2,000 (30)
466
1,130 1,130 1,566 436
9,572 9,572 9,572 -
$ 10,702 $ 10,702 $ 11,138 $ 436
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY HOUSING SET-ASIDE SPECIAL REVENUE FUND
For the year ended June 30, 2009
See independent auditors' report.
we
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Taxes
$ 204,600
$ 204,600
$ 220,201
$ 15,601
Use of money and property
31,400
31,400
27,391
(4,009)
TOTAL REVENUES
236,000
236,000
247,592
11,592
EXPENDITURES:
Current:
Planning, building and code enforcement
25,000
174,670
308,806
(134,136)
Land
-
-
432,094
(432,094)
Capital outlay
-
1,212,637
-
1,212,637
TOTAL EXPENDITURES
25,000
1,387,307
740,900
646,407
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
211,000
(1,151,307)
(493,308)
657,999
FUND BALANCE - BEGINNING OF YEAR
2,561,059
2,561,059
2,561,059
-
FUND BALANCE - END OF YEAR
$ 2,772,059
$ 1,409,752
$ 2,067,751
$ 657,999
See independent auditors' report.
we
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, 2009
REVENUES:
Use of money and property
Revenue from other agencies
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
.e
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 5,600
$ 5,600
$ 2,351
$ (3,249)
721,300
721,300
621,569
(99,731)
726,900
726,900
623,920
(102,980)
644,893
644,893
635,047
9,846
82,007
82,007
(11,127)
(93,134)
(18,200)
(18,200)
(15,150)
3,050
63,807
63,807
(26,277)
(90,084)
223,971
223,971
223,971
$ 287,778
$ 287,778
$ 197,694
$ (90,084)
.e
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, 2009
See independent auditors' report.
91
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 15,300
$ 15,300
$ 36,944
$ 21,644
Revenue from other agencies
601,100
601,100
557,794
(43,306)
TOTAL REVENUES
616,400
616,400
594,738
(21,662)
EXPENDITURES:
Current:
Public works
5,700
5,700
6,095
(395)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
610,700
610,700
588,643
(22,057)
OTHER FINANCING USES:
Transfers out
(608,671)
(2,408,671)
-
2,408,671
NET CHANGE IN FUND BALANCE
2,029
(1,797,971)
588,643
2,386,614
FUND BALANCE - BEGINNING OF YEAR
1,976,356
1,976,356
1,976,356
-
FUND BALANCE - END OF YEAR
$ 1,978,385
$ 178,385
$ 2,564,999
$ 2,386,614
See independent auditors' report.
91
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
BEAUTIFICATION SPECIAL REVENUE FUND
For the year ended June 30, 2009
REVENUES:
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 22,300 $ 22,300 $ 22,672 $ 372
195,000 195,000 198,398 3,398
217,300 217,300 221,070 3,770
265,940 467,784 168,226 299,558
(48,640) (250,484) 52,844 303,328
(155,200) (160,200) (12,784)
(203,840) (410,684) 40,060
450,744
1,327,191 1,327,191 1,327,191 -
$ 1,123,351 $ 916,507 $ 1,367,251 $ 450,744
'11
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, 2009
See independent auditors' report.
93
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 5,540
$ 5,540
$ 4,582
$ (958)
Revenue from other agencies
135,000
172,500
134,546
(37,954)
TOTAL REVENUES
140,540
178,040
139,128
(38,912)
EXPENDITURES:
Current:
Public works
337,160
314,660
284,573
30,087
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(196,620)
(136,620)
(145,445)
(8,825)
OTHER FINANCING USES:
Transfers out
(7,000)
(7,000)
7,000
NET CHANGE IN FUND BALANCE
(203,620)
(143,620)
(145,445)
(1,825)
FUND BALANCE - BEGINNING OF YEAR
319,550
319,550
319,550
FUND BALANCE - END OF YEAR
$ 115,930
$ 175,930
$ 174,105
$ (1,825)
See independent auditors' report.
93
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC SAFETY GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2009
See independent auditors' report.
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 720
$ 720
$ 1,625
$ 905
Revenue from other agencies
100,000
100,000
100,000
-
TOTAL REVENUES
100,720
100,720
101,625
905
EXPENDITURES:
Current:
Public safety
-
32,285
32,285
-
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
100,720
68,435
69,340
905
OTHER FINANCING USES:
Transfers out
(100,000)
(100,000)
(100,000)
NET CHANGE IN FUND BALANCE
720
(31,565)
(30,660)
905
FUND BALANCE - BEGINNING OF YEAR
65,200
65,200
65,200
-
FUND BALANCE - END OF YEAR
$ 65,920
$ 33,635
$ 34,540
$ 905
See independent auditors' report.
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, 2009
REVENUES:
Taxes
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 257,273 $ 257,273 $ 257,138 $ (135)
800 800 1,877 1,077
258,073 258,073 259,015 942
67,900 67,900 67,661 239
190,173 190,173 191,354 1,181
(180,000) (180,000) (180,000)
10,173 10,173 11,354 1,181
47,305 47,305 47,305 -
$ 57,478 $ 57,478 $ 58,659 $ 1,181
95
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, 2009
REVENUES:
Taxes
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Me
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 375,000
$ 375,000
$ 492,705
$ 117,705
35,000
35,000
27,552
(7,448)
410,000
410,000
520,257
110,257
480,000
480,000
402,551
77,449
(70,000)
(70,000)
117,706
187,706
(76,800)
(76,800)
(76,800)
-
(146,800)
(146,800)
40,906
187,706
1,591,701
1,591,701
1,591,701
-
$ 1,444,901
$ 1,444,901
$ 1,632,607
$ 187,706
Me
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND SPECIAL REVENUE FUND
For the year ended June 30, 2009
REVENUES:
Use of money and property
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 3,880 $ 3,880 $ 3,969 $ 89
135,100 135,100 82,253 52,847
(131,220) (131,220) (78,284) 52,936
91,500 91,500 82,252 (9,248)
(39,720) (39,720) 3,968 43,688
227,645 227,645 227,645 -
$ 187,925 $ 187,925 $ 231,613 $ 43,688
97
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HABITAT RESTORATION SPECIAL REVENUE FUND
For the year ended June 30, 2009
See independent auditors' report.
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 4,400
$ 4,400
$ 2,585
$ (1,815)
Other revenues
-
-
6,528
6,528
TOTAL REVENUES
4,400
4,400
9,113
4,713
EXPENDITURES:
Current:
Public works
123,200
123,200
124,687
(1,487)
Capital outlay
5,000
38,877
7,503
31,374
TOTAL EXPENDITURES
128,200
162,077
132,190
29,887
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(123,800)
(157,677)
(123,077)
(25,174)
OTHER FINANCING SOURCES:
Transfers in
115,000
115,000
115,000
NET CHANGE IN FUND BALANCE
(8,800)
(42,677)
(8,077)
(25,174)
FUND BALANCE - BEGINNING OF YEAR
233,257
233,257
233,257
FUND BALANCE - END OF YEAR
$ 224,457
$ 190,580
$ 225,180
$ (25,174)
See independent auditors' report.
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, 2009
REVENUES:
Use of money and property
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 18,900 $ 12,000 $ 12,331 $ 331
65,900 65,900 50,755 15,145
(47,000) (53,900) (38,424) 15,476
40,000 55,000 55,000 -
(7,000) 1,100 16,576 15,476
750,760 750,760 750,760 -
$ 743,760 $ 751,860 $ 767,336 $ 15,476
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE A SPECIAL REVENUE FUND
For the year ended June 30, 2009
See independent auditors' report.
100
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 800
$ 800
$ 1,478
$ 678
Revenue from other agencies
66,000
166,000
98,945
(67,055)
TOTAL REVENUES
66,800
166,800
100,423
(66,377)
OTHER FINANCING USES:
Transfers out
(99,900)
(175,900)
(75,900)
100,000
NET CHANGE IN FUND BALANCE
(33,100)
(9,100)
24,523
33,623
FUND BALANCE - BEGINNING OF YEAR
9,405
9,405
9,405
-
FUND BALANCE - END OF YEAR
$ (23,695)
$ 305
$ 33,928
$ 33,623
See independent auditors' report.
100
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, 2009
REVENUES:
Taxes
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
Capital Outlay
TOTAL EXPENDITURE
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
101
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 44,750
$ 44,750
$ 44,321
$ (429)
460
460
2,021
1,561
-
-
7,829
7,829
45,210
45,210
54,171
8,961
65,800
65,800
50,355
15,445
-
38,000
38,635
(635)
65,800
103,800
88,990
14,810
(20,590)
(58,590)
(34,819)
(5,849)
10,700
10,700
10,700
(9,890)
(47,890)
(24,119)
(5,849)
117,713
117,713
117,713
$ 107,823
$ 69,823
$ 93,594
$ (5,849)
101
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RANCHO PALOS VERDES TV CHANNEL SPECIAL REVENUE FUND
For the year ended June 30, 2009
See independent auditors' report.
102
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 150
$ 150
$ 192
$ 42
Other revenues
1,000
1,000
-
(1,000)
TOTAL REVENUES
1,150
1,150
192
(958)
EXPENDITURES:
Current:
Administration
116,890
101,090
101,089
1
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(115,740)
(99,940)
(100,897)
(957)
OTHER FINANCING SOURCES:
Transfers in
119,590
54,590
54,590
-
NET CHANGE IN FUND BALANCE
3,850
(45,350)
(46,307)
(957)
FUND BALANCE - BEGINNING OF YEAR
41,593
41,593
41,593
-
FUND BALANCE - END OF YEAR
$ 45,443
$ (3,757)
$ (4,714)
$ (957)
See independent auditors' report.
102
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DR. ALLEN AND CHARLOTTE GINSBURG CULTURAL ARTS BUILDING SPECIAL REVENUE FUND
For the year ended June 30, 2009
See independent auditors' report.
103
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 12,200
$ 12,200
$ 8,458
$ (3,742)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
12,200
12,200
8,458
(3,742)
FUND BALANCE - BEGINNING OF YEAR
492,045
492,045
492,045
FUND BALANCE - END OF YEAR
$ 504,245
$ 504,245
$ 500,503
$ (3,742)
See independent auditors' report.
103
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DONOR RESTRICTED CONTRIBUTIONS SPECIAL REVENUE FUND
For the year ended June 30, 2009
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ $ $ 34 $ 34
FUND BALANCE - BEGINNING OF YEAR 2,048 2,048 2,048 -
FUND BALANCE - END OF YEAR $ 2,048 $ 2,048 $ 2,082 $ 34
See independent auditors' report.
104
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
BIKEWAYS CAPITAL PROJECTS FUND
For the year ended June 30, 2009
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ $ $ 174 $ 174
Revenue from other agencies 25,000 26,802 24,630 (2,172)
TOTAL REVENUES 25,000 26,802 24,804 (1,998)
OTHER FINANCING USES:
Transfers out (25,000) (32,000) (30,002) 1,998
NET CHANGE IN FUND BALANCE - (5,198) (5,198) -
FUND BALANCE - BEGINNING OF YEAR 5,198 5,198 5,198
FUND BALANCE - END OF YEAR $ 5,198 $ $ $
See independent auditors' report.
105
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY ABALONE COVE CAPITAL PROJECTS FUND
For the year ended June 30, 2009
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 150 $ 150 $ 119 $ (31)
FUND BALANCE - BEGINNING OF YEAR 6,052 6,052 6,052 -
FUND BALANCE - END OF YEAR $ 6,202 $ 6,202 $ 6,171 $ (31)
See independent auditors' report.
106
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX CAPITAL PROJECTS FUND
For the year ended June 30, 2009
See independent auditors' report.
107
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 19,600
$ 19,600
$ 14,237
$ (5,363)
Other revenues
74,240
74,240
59,111
(15,129)
TOTAL REVENUES
93,840
93,840
73,348
(20,492)
EXPENDITURES:
Capital outlay
-
58,295
58,278
17
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
93,840
35,545
15,070
(20,475)
OTHER FINANCING USES:
Transfers out
(29,000)
(29,000)
-
29,000
NET CHANGE IN FUND BALANCE
64,840
6,545
15,070
8,525
FUND BALANCE - BEGINNING OF YEAR
824,223
824,223
824,223
-
FUND BALANCE - END OF YEAR
$ 889,063
$ 830,768
$ 839,293
$ 8,525
See independent auditors' report.
107
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
QUINIBY CAPITAL PROJECTS FUND
For the year ended June 30, 2009
REVENUES:
Use of money and property
Other
TOTAL REVENUES
EXPENDITURES:
Current:
Capital outlay
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 310 $ 310
12,000 12,000
12,310 12,310
25,000
Variance with
Final Budget
Positive
Actual (Negative)
$ 416 $ 106
- (12,000)
416 (11,894)
- 25,000
12,310 (12,690) 416 13,106
24,754 24,754 24,754 -
$ 37,064 $ 12,064 $ 25,170 $ 13,106
108
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AFFORDABLE HOUSING CAPITAL PROJECTS FUND
For the year ended June 30, 2009
See independent auditors' report.
109
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 19,500
$ 19,500
$ 14,534
$ (4,966)
EXPENDITURES:
Current:
Planning, building and code enforcement
-
-
2,516
(2,516)
Land
-
328,916
(328,916)
Capital outlay
331,432
-
331,432
TOTAL EXPENDITURE
-
331,432
331,432
-
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
19,500
(311,932)
(316,898)
(4,966)
FUND BALANCE - BEGINNING OF YEAR
1,155,231
1,155,231
1,155,231
FUND BALANCE - END OF YEAR
$ 1,174,731
$ 843,299
$ 838,333
$ (4,966)
See independent auditors' report.
109
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY PORTUGUESE BEND CAPITAL PROJECTS FUND
For the year ended June 30, 2009
REVENUES:
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
110
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 10,900
$ 10,900
$ 9,712
$ (1,188)
-
-
50,004
50,004
10,900
10,900
59,716
48,816
26,300
26,300
17,934
8,366
(15,400)
(15,400)
41,782
57,182
499,259
499,259
499,259
-
$ 483,859
$ 483,859
$ 541,041
$ 57,182
110
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
UTILITY UNDERGROUNDING CAPITAL PROJECTS FUND
For the year ended June 30, 2009
See independent auditors' report.
111
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 6,800 $ 6,800
$ 4,529
$ (2,271)
FUND BALANCE - BEGINNING OF YEAR
269,241 269,241
269,241
FUND BALANCE - END OF YEAR
$ 276,041 $ 276,041
$ 273,770
$ (2,271)
See independent auditors' report.
111
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ROADWAY BEAUTIFICATION CAPITAL PROJECTS FUND
For the year ended June 30, 2009
See independent auditors' report.
112
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 2,500 $ 2,500
$ 1,678
$ (822)
FUND BALANCE - BEGINNING OF YEAR
99,875 99,875
99,875
-
FUND BALANCE - END OF YEAR
$ 102,375 $ 102,375
$ 101,553
$ (822)
See independent auditors' report.
112
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY ABALONE COVE PERMANENT FUND
For the year ended June 30, 2009
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 32,900 $ 32,900 $ 26,082 $ (6,818)
EXPENDITURES:
Current:
Public works 106,776 106,776 35,132 71,644
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (73,876) (73,876) (9,050) 64,826
FUND BALANCE - BEGINNING OF YEAR 1,371,281 1,371,281 1,371,281 -
FUND BALANCE - END OF YEAR $ 1,297,405 $ 1,297,405 $ 1,362,231 $ 64,826
See independent auditors' report.
113
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CITY OF RANCHO PALOS VERDES
JUNE 30, 2009
INTERNAL SERVICE FUNDS DESCRIPTIONS
The Internal Service Funds are used to finance and account for goods and
services provided by one City department to other City departments on a cost -
reimbursement basis, including depreciation.
Equipment Replacement — to account for purchases, replacement and
maintenance of certain equipment items on behalf of all City departments.
Building Replacement — to account for the accumulation of funds transferred from
the General Fund for replacement of certain buildings on behalf of the City.
Employee Benefits — to account for employee benefit costs for all employees
charged to various City departments.
115
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
June 30, 2009
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:
Due to other funds
Accounts payable and accrued liabilities
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
See independent auditors' report.
Equipment
Building
Employee
Replacement
Replacement
Benefits
Totals
$ 3,049,521
$ 1,364,880
$ -
$ 4,414,401
7,957
3,606
83
11,646
-
-
530,508
530,508
3,057,478
1,368,486
530,591
4,956,555
1,346,194
-
-
1,346,194
(1,028,417)
-
-
(1,028,417)
317,777
-
-
317,777
3,375,255
1,368,486
530,591
5,274,332
- - 342,139 342,139
89,321 42,435 (16,389) 115,367
89,321 42,435 325,750 457,506
317,777 - - 317,777
$ 3,285,934 $ 1,326,051 $ 204,841 $ 4,816,826
116
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS - INTERNAL SERVICE FUNDS
For the year ended June 30, 2009
OPERATING REVENUES:
Charges for services
OPERATING EXPENSES:
Personnel services
Materials and supplies
Maintenance
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUES:
Other revenues
Investment income
TOTAL NONOPERATING REVENUES
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING OF YEAR
TOTAL NET ASSETS - END OF YEAR
See independent auditors' report.
Equipment
Building
Employee
Replacement
Replacement
Benefits
Totals
$ 180,600
$ -
$ 1,615,134
$ 1,795,734
-
-
2,318,464
2,318,464
186,188
-
-
186,188
17,842
206,098
-
223,940
142,663
-
-
142,663
346,693
206,098
2,318,464
2,871,255
(166,093)
(206,098)
(703,330)
(1,075,521)
1,580
-
-
1,580
51,192
24,419
8,927
84,538
52,772
24,419
8,927
86,118
(113,321)
(181,679)
(694,403)
(989,403)
3,399,255
1,507,730
899,244
5,806,229
$ 3,285,934
$ 1,326,051
$ 204,841
$ 4,816,826
117
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2009
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -
END OF YEAR
(84,801) (84,801)
342,139 342,139
59,074 27,960 12,259 99,293
15,631 (139,791) (747,840) (872,000)
3,033,890 1,504,671 747,840 5,286,401
$ 3,049,521 $ 1,364,880 $ - $ 4,414,401
RECONCILIATION OF OPERATING INCOME
Equipment
Building
Employee
(LOSS) TO NET CASH PROVIDED (USED)
Replacement
Replacement
Benefits
Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss) $
(166,093)
$ (206,098) $ (703,330)
Receipts from interfund services provided
$ 180,600
$
$ 1,615,134
$ 1,795,734
Payments to suppliers
(139,242)
(167,751)
-
(306,993)
Payments to employees
-
-
(2,717,372)
(2,717,372)
NET CASH PROVIDED (USED)
(Increase) decrease in prepaid items
-
- (382,011)
BY OPERATING ACTIVITIES
41,358
(167,751)
(1,102,238)
(1,228,631)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -
END OF YEAR
(84,801) (84,801)
342,139 342,139
59,074 27,960 12,259 99,293
15,631 (139,791) (747,840) (872,000)
3,033,890 1,504,671 747,840 5,286,401
$ 3,049,521 $ 1,364,880 $ - $ 4,414,401
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss) $
(166,093)
$ (206,098) $ (703,330)
$ (1,075,521)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation
142,663
142,663
Changes in operating assets and liabilities:
(Increase) decrease in prepaid items
-
- (382,011)
(382,011)
Increase (decrease) in accrued liabilities
64,788
38,347 (16,897)
86,238
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES $
41,358
$ (167,751) $ (1,102,238)
$ (1,228,631)
See independent auditors' report.
118
STATISTICAL SECTION
This part of the City of Rancho Palos Verdes' comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the city's overall financial health.
Contents
Page
Financial Trends 120
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity 127
These schedules contain information to help the reader assess the City's most
significant local revenue source, property tax.
Debt Capacity 131
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 134
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 136
These schedules contain services and infrastructure data to help the reader
understand how the information in the City's financial report relates to the services
the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
119
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
City of Rancho Palos Verdes
Net Assets by Component
Last Eight Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009
$ 93,636
$ 94,895
$ 92,499
$ 94,023
$109,991
$109,746
$109,376
$ 107,867
10,327
10,661
11,586
12,075
12,417
12,163
1,000
1,000
13,666
13,004
14,271
15,659
16,024
17,823
30,471
31,277
$117,629
$118,560
$118,356
$121,757
$138,432
$139,732
$140,847
$ 140,144
$ 1,311 $ 2,158 $ 5,599 $ 12,477
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.
120
$ 2,000
2,799
5,258
7,740
2,108
$ 2,000
$ 4,110
$ 7,416
$ 13,339
$ 14,585
$ 93,636
$ 94,895
$ 92,499
$ 94,023
$111,302
$111,904
$114,975
$ 120,344
10,327
10,661
11,586
12,075
12,417
12,163
1,000
1,000
13,666
13,004
14,271
17,659
18,823
23,081
38,211
33,385
$117,629
$118,560
$118,356
$123,757
$142,542
$147,148
$154,186
$ 154,729
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.
120
Expenses
Governmental activities:
Administration
Public safety
Public works
Parks and recreation
Planning, building and code enforcement
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water Quality Flood Protection
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
Administration
Public safety
Public works
Parks and recreation
Planning, building and code enforcement
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
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
Net (expense)/revenue
Governmental activities
Business -type activities
Total primary government net expense
City of Rancho Palos Verdes
Changes in Net Assets
Last Eight Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009
$ 3,069 $ 3,294 $ 3,499 $ 4,055 $ 4,350 $ 4,953 $ 4,724 $ 6,357
2,898
3,094
3,024
3,079
3,437
3,751
4,044
4,233
7,283
7,954
7,462
9,488
9,290
9,969
9,026
10,555
687
809
948
1,065
1,659
1,439
1,396
1,605
1,916
2,170
2,296
2,223
2,060
2,631
2,441
2,697
273
273
273
272
270
271
270
268
16,126
17,594
17,502
20,182
21,066
23,014
21,901
25,715
47 271 301 437
$16,126 $ 17,594 $ 17,502 $ 20,182 $21,113 $ 23,285 $ 22,202 $ 26,152
$ 157
$ 87
$ 69
$ 62
$ 35
$ 29
$ 538
$ 555
433
235
165
163
224
332
316
267
78
252
217
131
37
185
1,002
422
10
8
6
41
45
51
483
483
979
1,202
1,363
1,188
1,319
1,599
1,760
1,643
6,877
2,971
2,836
2,728
3,894
4,200
3,570
2,963
706
131
37
4,524
17,299
317
1,472
642
9,240
4,886
4,693
8,837
22,853
6,713
9,141
6,975
$ 9,240 $ 4,886 $ 4,693 $ 8,837 $22,853 $ 6,713 $ 9,141 $ 6,975
$ (6,886) $(12,708) $(12,809) $(11,345) $ 1,787 $(16,301) $(12,760) $(18,740)
- - - - (47) (271) (301) (437)
$ (6,886) $(12,708) $(12,809) $(11,345) $ 1,740 $(16,572) $(13,061) $(19,177)
121
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
City of Rancho Palos Verdes
Changes in Net Assets
Last Eight Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009
$ 5,253 $ 5,335 $ 5,706 $ 5,840 $ 9,621 $ 10,235 $ 10,935 $ 11,462
1,139
1,087
1,275
1,307
1,454
1,512
1,599
1,709
1,093
1,003
1,205
1,276
1,214
1,381
1,056
1,053
1,812
1,832
1,851
1,901
2,191
2,271
2,329
2,267
2,744
3,495
2,867
4,545
727
363
820
690
814
371
331
594
997
1,615
1,555
735
(67)
517
2,481
1,283
793
2,101
300
225
(2,000)
(2,109)
(2,017)
(4,719)
-
12,788
13,640
15,716
14,746
14,888
17,461
13,875
18,141
48
51
283
105
-
1,188
1,222
1,578
-
320
2,000
2,109
2,017
4,719
-
-
-
-
2,000
2,157
3,576
6,224
1,683
$12,788 $ 13,640 $ 15,716 $ 16,746 $17,045 $ 21,037 $ 20,099 $ 19,824
$ 5,902 $ 932 $ 2,907 $ 3,401 $16,675 $ 1,160 $ 1,115 $ (599)
- - - 2,000 2,110 3,305 5,923 1,246
$ 5,902 $ 932 $ 2,907 $ 5,401 $18,785 $ 4,465 $ 7,038 $ 647
The information in this table is not available prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
122
City of Rancho Palos Verdes
Governmental Activities Tax Revenues By Source
Last Eight Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
1: Most of the Motor Vehicle In Lieu Tax is received as Property Tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2002, as the City did
not implement GASB 34 until Fiscal Year 2002.
123
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
' 1,454
1,214
2,191
727
' 15,207
2007
10,235
1,512
1,381
2,271
363
15,762
2008
10,935
1,599
1,056
2,329
820
16,739
2009
11,462
1,709
1,053
2,267
690
17,181
1: Most of the Motor Vehicle In Lieu Tax is received as Property Tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2002, as the City did
not implement GASB 34 until Fiscal Year 2002.
123
General Fund
Reserved
Designated
Unreserved, Undesignated
Total General Fund
All other Governmental Funds
Reserved
Designated
Special Revenue Funds
Capital Projects Funds
Permanent Fund
Debt Service Fund
Unreserved, Undesignated, reported in:
Special Revenue Funds
Capital Projects Funds
Permanent Fund
Debt Service Fund
Total all other Governmental Funds
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
$ 6,367 $ 6,317 $ 6,571 $ 6,854 $ 6,639 $ 6,021
$ 6,165
$ 6,586
$ 6,645
$ 6,400
675
876
786
1,278
1,333
6,791 7,043 7,234 9,607 14,066 14,209
13,649
14,376
12,171
10,354
$13,158 $13,360 $13,805 $16,461 $ 20,705 $ 20,905
$ 20,690
$ 21,748
$ 20,094
$18,087
$ 3,922 $ 3,406 $11,256 $ 7,584 $ 7,229 $ 3,147 $ 3,315 $ 2,396 $ 2,724 $ 3,672
12,163 10,472
4,283 4,697 4,753
332
443
615 744 1,849 1,896 411
2,416 2,799 3,158 4,347 6,442
75 65
5,012 5,040 5,902 6,615 6,426 7,494 7,910
534 2,430 3,320 2,077 1,869 1,908 3,373
460 418 426 329 325 371 362
(10,477) (10,915) (12,070) (12,793) (13,741) (14,873) (15,990) (16,823)
$ 20,368 $18,575 $ 6,307 $ 2,675 $ 3,047 $ 3,033 $ 2,213 $ 1,215 $ 2,750 $ 5,347
1: Prior to 2002, all Capital Projects Fund Balances were designated for future projects.
2: Prior to 2002, the Permanent Fund was reported as a Fiduciary fund.
3: Prior to 2002, the balance of long-term debt was recorded in an account group instead of the Debt Service Fund.
124
Revenues
Taxes
Licenses and permits
Fines and forfeitures
Use of money and property
Charges for services
Revenues from other agencies
Other Revenues
Total Revenues
Expenditures
Administration
Public Safety
Public Works
Parks and Recreation
Planning, Building and Code Enforcement
Pass Through to other agencies
Capital Outlay
Debt Service
Principal
Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
Other Financing Sources (uses)
Transfers in
Transfers out
Bond Proceeds
Advances to the Redevelopment Agency
Total Other Financing Sources (uses)
Net change in Fund Balances
Cost of Assets Capitalized
Debt Services as a percentage of Non -Capital Expenditures
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)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
$ 9,530 $10,309 $10,677 $11,046 $12,081 $13,573 $15,238 $16,453 $17,062 $17,573
1,090
1,164
1,245
1,463
1,310
1,326
1,440
1,763
1,914
1,755
157
139
117
115
102
108
171
237
260
214
1,704
1,971
1,153
804
733
1,306
7,038
3,480
2,108
1,240
203
197
217
205
379
152
49
61
60
163
3,655
4,816
8,170
4,318
3,453
7,848
15,511
4,118
4,647
3,575
2,137
882
563
554
2,363
1,038
155
201
1,563
467
18,476
19,478
22,142
18,505
20,421
25,351
39,602
26,313
27,614
24,987
1,846
3,052
2,915
3,092
3,328
3,852
4,041
4,607
4,411
4,915
2,662
2,733
2,898
3,094
3,039
3,092
3,438
3,751
4,044
4,233
5,552
4,972
7,449
5,292
4,801
6,302
5,277
6,864
5,768
7,075
597
596
669
786
946
965
1,593
1,319
1,281
1,354
1,647
1,778
1,950
2,194
2,362
2,302
2,361
2,681
2,496
2,723
85
91
102
137
156
188
200
152
169
187
2,157
7,015
8,246
3,893
368
4,912
20,202
3,124
3,112
2,459
184
200
248
316
350
985
1,128
930
836
805
905
1,150
1,390
1,370
1,101
15,531
21,365
25,159
19,324
15,805
22,702
38,462
24,136
22,967
24,397
2,945
(1,887)
(3,017)
(819)
4,616
2,649
1,140
2,177
4,647
590
3,687
5,013
4,294
1,676
1,844
6,180
4,989
4,489
3,158
5,815
(4,469)
(5,165)
(4,877)
(1,833)
(1,844)
(8,180)
(7,247)
(6,606)
(7,924)
(5,815)
982
855
200
703
(583)
(157)
-
(2,000)
(2,258)
(2,117)
(4,766)
-
$3,145
$ (1,184)
$ (3,600)
$ (976)
$ 4,616
$ 649
$ (1,118)
$ 60
$ (119)
$ 590
-
11,047
4,184
379
4,623
19,465
2,800
2,764
1,895
6.6%
5.5%
5.2%
6.0%
7.1%
7.7%
8.3%
6.4%
1: The cost of assets capitalized from Governmental Fund expenditures is not available prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
125
City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts expressed in thousands)
Source: City General Ledger
1: Most of the Motor Vehicle In Lieu Fees are received as property tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2000, as the City has
not retained detailed general ledger information sufficient to provide tax revenue by type
prior to Fiscal Year 2000.
126
Utility
Fiscal
Property
Franchise
Sales
Users
Other
Year
Tax
Tax
Tax
Tax
Taxes
Total
2000
$ 4,357
$ 972
$1,024
$1,550
$1,627
$ 9,530
2001
4,629
1,087
1,101
1,764
1,728
10,309
2002
4,972
1,139
1,093
1,812
1,661
10,677
2003
5,335
1,087
1,003
1,832
1,789
11,046
2004
5,706
1,275
1,205
1,851
2,044
12,081
2005
8,494
' 1,307
1,009
1,901
862
13,573
2006
9,576
1,299
995
2,191
1,177
15,238
2007
10,385
1,511
1,020
2,272
1,265
16,453
2008
10,898
1,599
1,077
2,329
1,159
17,062
2009
11,462
1,709
1,060
2,267
1,075
17,573
Source: City General Ledger
1: Most of the Motor Vehicle In Lieu Fees are received as property tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2000, as the City has
not retained detailed general ledger information sufficient to provide tax revenue by type
prior to Fiscal Year 2000.
126
City of Rancho Palos Verdes
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
Fiscal
Total
Estimated
Assessed
Total Taxable
Less
Year
Residential
Commercial
Industrial
Other
Unsecured
Tax -Exempt
End
Property
Property
Property
Property
Property
Property
2000
$ 4,749,269
$ 71,044
$ -
$224,033
$ 16,962
$ 69,550
2001
5,065,424
74,006
-
204,529
18,423
69,733
2002
5,410,470
73,923
-
197,904
19,641
71,660
2003
5,730,464
70,475
-
191,541
21,741
73,768
2004
6,137,760
74,753
1,660
179,867
22,889
73,701
2005 *
6,528,205
76,547
1,691
201,852
22,222
73,701
2006 *
7,066,894
88,798
3,086
212,652
21,561
73,664
2007
7,655,413
111,450
3,148
275,526
20,378
77,712
2008
8,080,905
170,825
3,211
370,134
26,546
152,181
2009
8,436,947
281,813
3,275
367,999
46,858
166,268
Source: County Assessor Data and HdL Coren & Cone
2008-09 County Auditor/Controller Data, HdL Coren & Cone
*Prior Year assessed values have been revised from prior CAFR publications to comply with GASB No. 44 standards and on-going consistency in reporting methodologies.
(1) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.
Based on these calculations a factor was extrapolated and applied to current assessed values.
(2) The Factor used to calculate Estimated Actual Value was applied to prior years for historical purposes.
127
Total
Estimated
Assessed
Total Taxable
Direct
Actual
Factor of
Value as a
Assessed
Tax
Taxable
Taxable
Percentage of
Value
Rate
Value (1)
Assessed Value (2)
Actual Value
$ 5,061,307
0.06892%
$ 6,735,840
1.33085
75.14%
5,362,382
0.06786%
7,136,526
1.33085
75.14%
5,701,938
0.07869%
7,588,424
1.33085
75.14%
6,014,221
0.07317%
8,004,026
1.33085
75.14%
6,416,930
0.07897%
8,539,971
1.33085
75.14%
6,830,517
0.07922%
9,090,393
1.33085
75.14%
7,392,992
0.07893%
9,838,964
1.33085
75.14%
8,065,915
0.07865%
10,734,523
1.33085
75.14%
8,499,440
0.07931%
11,311,480
1.33085
75.14%
8,970,624
0.07959%
11,938,555
1.33085
75.14%
Source: County Assessor Data and HdL Coren & Cone
2008-09 County Auditor/Controller Data, HdL Coren & Cone
*Prior Year assessed values have been revised from prior CAFR publications to comply with GASB No. 44 standards and on-going consistency in reporting methodologies.
(1) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.
Based on these calculations a factor was extrapolated and applied to current assessed values.
(2) The Factor used to calculate Estimated Actual Value was applied to prior years for historical purposes.
127
City of Rancho Palos Verdes
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls
Note: Tax rates are per $100 of assessed value.
128
Total Direct
& Overlapping
Tax Rates
1.05494
1.07994
1.09909
1.08498
1.12830
1.13738
1.13195
1.15510
1.17010
1.17817
Flood
Metropolitan
Community
Fiscal
General
Los Angeles
Control
Water
Library
College
School
Year
Levy
County
District
District
District
District
Districts
2000
1.00000
0.00142
0.00176
0.00890
0.01133
-
0.03152
2001
1.00000
0.00131
0.00156
0.00880
0.01138
-
0.05689
2002
1.00000
0.00113
0.00107
0.00770
0.00959
0.01600
0.06361
2003
1.00000
0.00103
0.00088
0.00670
0.00970
0.01460
0.05206
2004
1.00000
0.00099
0.00047
0.00610
0.00896
0.01986
0.09191
2005
1.00000
0.00092
0.00024
0.00580
0.00852
0.01810
0.10382
2006
1.00000
0.00080
0.00005
0.00520
0.00781
0.01430
0.10384
2007
1.00000
0.00066
0.00005
0.00470
0.00731
0.02146
0.12091
2008
1.00000
-
-
0.00450
0.01370
0.00878
0.14310
2009
1.00000
-
-
0.00430
0.00680
0.02212
0.14500
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls
Note: Tax rates are per $100 of assessed value.
128
Total Direct
& Overlapping
Tax Rates
1.05494
1.07994
1.09909
1.08498
1.12830
1.13738
1.13195
1.15510
1.17010
1.17817
City of Rancho Palos Verdes
Principal Property Taxpayers
Current Year
(Amounts expressed in thousands)
"Previously Ocean Trails LLP
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls
129
2009
2000
Percentage of
Percentage of
Assessed
Total Assessed
Assessed
Total Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
Long Point Development LLC
$ 141,074
1
1.57%
PPC Villas RPV
88,138
2
0.98%
PV Victoria Apartments LLC
45,898
3
0.51%
*VH Property Corp. (Ocean Trails LP)
43,889
4
0.49%
Terraces Rancho Palos Verdes LLC
34,541
5
0.39%
Western Riviera Investors
27,939
6
0.31%
Golden Cove LLC
25,500
7
0.28%
COX Communication Inc. Orange
24,180
8
0.27%
Belmont Village PRV LP
22,744
9
0.25%
VHPS LLP
19,949
10
0.22%
Ocean Trails LP (VH Property Corp.)
$ 47,544
1
0.94%
PV Victoria Apartments LLC
38,436
2
0.76%
Connecticut General Life Insurance
26,308
3
0.52%
Western Riviera Investors
23,347
4
0.46%
Home for Aged of Protestant Episcopal
22,560
5
0.45%
RPV Associates
20,778
6
0.41%
York Long Point Associates
20,741
7
0.41%
P V Terraces Inc.
18,130
8
0.36%
California Water Service Company
13,490
9
0.27%
Theodore R II and Virginia T Gardner
12,917
10
0.26%
Totals
$ 473,853
$ 244,251
5.27%
4.84%
"Previously Ocean Trails LLP
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls
129
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Five Fiscal Years
(amounts expressed in thousands)
Source: County Assessor Data and City General Ledger
Total Collections to Date
Collections in
Collected within the
Subsequent Years
Total Tax
Fiscal Year of the Levy
Fiscal
Levy for
Percentage
Year
Fiscal Year
Amount of Levy
2005
$ 4,284
$ 4,001 93.40%
2006
4,643
4,506 97.06%
2007
5,078
4,799 94.51%
2008
5,351
5,316 99.35%
2009
6,116
5,734 93.76%
Source: County Assessor Data and City General Ledger
Total Collections to Date
Collections in
Percentage
Subsequent Years
Amount
of Levy
$ 144
$ 4,145
96.76%
36
4,542
97.83%
10
4,809
94.70%
10
5,327
99.55%
10
5,744
93.92%
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and
is therefore unavailable.
130
City of Rancho Palos Verdes
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts expressed in thousands, except per capita amount)
Source: City Financial Records
131
Governmental Activities
RDA
RDA
Total
Debt
Ratio of Debt
Ratio of Debt
Fiscal
Tax Increment
Deferred Interest
Primary
Per
to Property
to Personal
Year
Bond
Payable
Government
Capita
Value
Total Income
2000
5,455
3,111
8,566
190.64
0.13%
0.0004118%
2001
5,455
3,111
8,566
208.19
0.12%
0.0004497%
2002
5,455
3,111
8,566
203.94
0.11%
0.0004405%
2003
5,455
3,111
8,566
202.40
0.11%
0.0004372%
2004
5,455
3,111
8,566
200.09
0.10%
0.0004322%
2005
5,450
2,469
7,919
181.94
0.09%
0.0003567%
2006
5,435
2,284
7,719
179.55
0.08%
0.0003520%
2007
5,410
2,061
7,471
173.37
0.07%
0.0003399%
2008
5,370
1,786
7,156
166.56
0.06%
-
2009
5,315
1,491
6,806
159.32
0.06%
0.0003008%
Source: City Financial Records
131
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
Total Debt
0.950%
City's Share of
6/30/2009 %Applicable
(1)
Debt 6/30/09
$84,705,000
0.982%
$831,803
293,425,000
0.481%
1,411,374
2,408,605,000
1.691%
40,729,511
8,046,220,000
0.207%
16,655,675
68,710,681
46.941%
32,253,481
-
0.000%
-
8,265,000
49.577%
4,097,539
246,875,000
0.950%
2,345,313
98, 324, 696
$928,941,195
0.950%
$8,824,941
235,690,861
0.950%
2,239,063
15,904,264
0.950%
151,091
59,701,323
10.615%
6,337,295
10,171,869
4.495%
457,226
440,351,710
0.207%
911.528
$18,921,144
(45.958)
18, 875,186
GROSS COMBINED TOTAL DEBT $117,245,840 (2)
NET COMBINED TOTAL DEBT $117,199,882
(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.
2008-09 Assessed Valuation: 8,970,624,215
Redevelopment Incremental Valuation: 99,249,253
Adjusted Assessed Valuation: $8,871,374,962
Ratios to 2008-09 Assessed Valuation:
Direct Debt 0.00%
Total Direct and Overlapping Tax and Assessment Debt 1.10%
Ratios to Adjusted Assessed Valuation:
Gross Combined Total Debt 1.32%
Net Combined Total Debt 1.32%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/09: $1
Source: 2008-09 MuniServices, LLC
132
Debt Limit
Total Net Debt applicable to limit
Legal Debt Margin
Total Net Debt applicable to the
limit as a percentage of Debt Limit
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
$759,196 $804,357 $855,291 $902,133 $962,539 $1,021,177 $1,105,647 $1,195,665 $1,274,916 $ 1,345,594
$759,196 $804,357 $855,291 $902,133 $962,539 $1,021,177 $1,105,647 $1,195,665 $1,274,916 $ 1,345,594
0% 0% 0% 0%
133
0% 0% 0% 0% 0% 0%
Total Taxable Value (see page 127) $ 8,970,624
Debt Limit (15% of total taxable value) 1,345,594
Debt applicable to limit -
Legal Debt Margin $ 1,345,594
City of Rancho Palos Verdes
Demographic and Economic Statistics
Last Ten Fiscal Years
Source: 2008-09 MuniServices, LLC
Source: 2007-08 and prior, previously published CAFR Report
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data is derived from previous income adjusted for inflation.
3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
4.) Data provided by the United States Census Data Sets Tables.
*Student Enrollment reflects the total number of students enrolled in the Palos Verdes Unified
School District. Any other school districts within the City are not accounted for in this statistic.
134
County
Unemployment
Rate (%) (3)
7.50%
City
Unemployment
Rate (%) (3)
1.50%
1.50%
1.50%
2.50%
County
Population (1)
10,301,658
City
Population
(% of County)
0.41%
Per Capita
Public
Fiscal
Personal
Personal
Median
School
Year
Population (1)
Income (2)
Income (2)
Age (4)
Enrollment*
1999-00
44,933
$ 2,080,128,302
$ 46,294
44.7
-
2000-01
41,145
1,904,766,630
46.294
44.7
-
2001-02
42,002
1, 944, 440, 588
46.294
44.7
-
2002-03
42,322
1,959,254,668
46.294
44.7
-
2003-04
42,810
1, 981, 846,140
46.294
44.7
-
2004-05
43,525
2,219,905,575
51.003
43.4
-
2005-06
42,991
2,192,669,973
51.003
43.4
-
2006-07
43,092
2,197,821,276
51.003
43.4
-
2007-08
42,964
-
-
-
-
2008-09
42,720
2,262,493,920
52.961
43.4
12,033
Source: 2008-09 MuniServices, LLC
Source: 2007-08 and prior, previously published CAFR Report
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data is derived from previous income adjusted for inflation.
3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
4.) Data provided by the United States Census Data Sets Tables.
*Student Enrollment reflects the total number of students enrolled in the Palos Verdes Unified
School District. Any other school districts within the City are not accounted for in this statistic.
134
County
Unemployment
Rate (%) (3)
7.50%
City
Unemployment
Rate (%) (3)
1.50%
1.50%
1.50%
2.50%
County
Population (1)
10,301,658
City
Population
(% of County)
0.41%
City of Rancho Palos Verdes
Principal Employers
Current Year
Total City Employment (2)
20,600
Source: Direct Contact with Local Businesses.
1: The number shown represents the total employee count for the entire District. The District
does not track employees by location.
2: Total City Employment provided by EDD Labor Force Data.
Note: There is currently no agency or service that monitors employees by business located
within City limits. All available information is for the greater Los Angeles area. The City is
primarily a bedroom community with very little commercial activity. Data was obtained by
making inquiries with the Planning, Building & Code Enforcement Department and the City
Manager's office to determine the entities that are likely the largest employers. Then those
likely employers were contacted directly to determine the number of employees. This data
is not available for the previous nine years.
135
Percentage
of Total City
Employer
Employees
Rank
Employment
Palos Verdes Peninsula Unified School District (1)
1,970
1
9.56%
Terranea Resort Hotel
730
2
3.54%
Trump National
300
3
1.46%
Marymount College
195
4
0.95%
Ralphs
115
5
0.56%
Keller Williams Realty
112
6
0.54%
Belmontcorp Ltd
94
7
0.46%
Green Hills Memorial Park
85
8
0.41%
American Golf Corp
70
9
0.34%
St. John Fisher
50
10
0.24%
Subtotal of Principal Employers
3,721
18.06%
Total City Employment (2)
20,600
Source: Direct Contact with Local Businesses.
1: The number shown represents the total employee count for the entire District. The District
does not track employees by location.
2: Total City Employment provided by EDD Labor Force Data.
Note: There is currently no agency or service that monitors employees by business located
within City limits. All available information is for the greater Los Angeles area. The City is
primarily a bedroom community with very little commercial activity. Data was obtained by
making inquiries with the Planning, Building & Code Enforcement Department and the City
Manager's office to determine the entities that are likely the largest employers. Then those
likely employers were contacted directly to determine the number of employees. This data
is not available for the previous nine years.
135
City of Rancho Palos Verdes
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Source: City Budget documents and Payroll records
136
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Function
General Government
41
41
42
45
45
45
47
50
55
58
Recreation Part -Time
10
10
10
10
10
10
10
10
10
18.5
Total
51
51
52
55
55
55
57
60
65
77
Source: City Budget documents and Payroll records
136
City of Rancho Palos Verdes
Operating Indicators by Function
Last Eight Fiscal Years
Source: City Departments
DNA: Data Not Available
The information presented in this table was not collected by the City prior to Fiscal Year 2002
137
Fiscal Year
2002
2003
2004
2005
2006
2007
2008
2009
Function
Administration
Employee Resignations
4
-
5
4
4
4
8
4
Workers Compensation Claims
3
2
2
3
4
2
4
2
Liability Claims
14
14
14
18
31
14
16
13
Budget Adjustments
35
30
27
36
48
32
26
18
Business Licenses Issued
1,600
1,961
2,102
1,909
1,801
1,837
1,709
1,819
Web Site Page Views
88,888
119,104
133,481
224,777
1.3 mil
1.6 mil
701,004
3.8 mil
Public Safety
Part I Crime Rates (per 10,000 population)
138
122
122
101
120
139
123
126
Public Works
Solid Waste Diversion Rates
51%
57%
61%
59%
55%
56%
56%
55%
Pavement Rating
80
80
89
89
82
82
DNA
84.5
Recreation and Parks
Park Events
1,022
915
825
780
937
770
692
825
Class meetings at Parks
1,774
2,134
2,935
2,893
2,856
2,647
2,772
2,708
Docent led Nature Hikes
54
45
80
65
62
98
91
105
Planning, Building and Code Enforcement
Building Permits processed
1,264
1,327
1,399
1,233
1,382
1,244
1,692
1,404
Plan Checks
121
150
186
208
163
164
247
226
Municipal code Violations closed
138
203
214
180
159
162
216
339
Source: City Departments
DNA: Data Not Available
The information presented in this table was not collected by the City prior to Fiscal Year 2002
137
City of Rancho Palos Verdes
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2000 2001 2002 2003 2004 2005 2006 2007 2008
Function
Administration
Computer Workstations DNA DNA DNA DNA DNA 81 81 85 91
Public safety'
Public works
Street Miles
143
143
143
143
143
143
Traffic Signals
13
13
14
15
15
15
Parks and Recreation
5
Parks
13
14
15
15
15
15
Planning, Building and Code Enforcement
Vehicles used for inspections
DNA
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.
138
2009
92
143
143
143
143
15
15
16
16
16
16
16
16
3
3
5
5