CAFR FY 2018-19CITY OF RANCHO PALOS VERDES
ANNUAL FINANCIAL REPORT
COMPREHENSIVE
C A L I F O R N I A
FISCAL YEAR ENDED
JUNE 30TH, 2019
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Photo and Design by
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Pictured: Ocean Trails Reserve at sunset
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
Prepared by:
Finance Department
INTRODUCTORY SECTION
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2019
Table of Contents
i
PAGE
NUMBER
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal v
Directory of Officials xiii
Organizational Chart xiv
GFOA Certificate of Achievement for Excellence in Financial Reporting xv
FINANCIAL SECTION
Independent Auditors’ Report 1
Management’s Discussion and Analysis 5
Government-Wide Financial Statements
Statement of Net Position 19
Statement of Activities 20
Fund Financial Statements
Government Funds
Balance Sheet 22
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 23
Statement of Revenues, Expenditures and Changes in Fund Balances 24
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 25
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual 26
State Grants Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual 28
Proprietary Funds
Statement of Net Position 29
Statement of Revenues, Expenses and Changes in Net Position 30
Statement of Cash Flows 31
Fiduciary Funds
Statement of Fiduciary Net Position 32
Statement of Changes in Fiduciary Net Position 33
Notes to the Financial Statements 35
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability 67
Schedule of Pension Contributions 68
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2019
Table of Contents
ii
PAGE
NUMBER
FINANCIAL SECTION (CONTINUED)
Supplementary Information
Non-Major Governmental Funds
Description of Special Revenue Funds 69
Combining Balance Sheet 72
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 78
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual:
Special Revenue Funds
Gas Tax Fund 84
1972 Act Fund 85
El Prado Fund 86
1911 Act Fund 87
Beautification Fund 88
Waste Reduction Fund 89
Air Quality Management Fund 90
Proposition C Fund 91
Proposition A Fund 92
Public Safety Grants Fund 93
Measure R Fund 94
Measure A Fund 95
Measure M Fund 96
Abalone Cove Sewer Assessment Fund 97
Dr. Allen and Charlotte Ginsburg Cultural Arts Building Fund 98
Donor Restricted Contributions Fund 99
Joint Powers Improvement Authority - Portuguese Bend Fund 100
Community Development Block Grant Fund 101
Federal Grants 102
Quimby Fund 103
Environmental Excise Tax Fund 104
Capital Projects Fund
Low-Moderate Income Capital Projects Fund 105
Affordable Housing In-Lieu Capital Projects Fund 106
Permanent Funds
Habitat Restoration Fund 107
Subregion One Permanent Fund 108
Joint Powers Improvement Authority - Abalone Cove Fund 109
Capital Improvement Major Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual 110
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2019
Table of Contents
iii
PAGE
NUMBER
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents 111
Financial Trends
Net Position by Component 112
Changes in Net Position 114
Governmental Activities Tax Revenue by Source 117
Fund Balances of Governmental Funds - Before GASB 54 118
Fund Balances of Governmental Funds - After GASB 54 119
Changes in Fund Balances of Governmental Funds 120
General Governmental Tax Revenues by Source 122
Revenue Capacity
Assessed Value of Taxable Property 123
Assessed Value and Estimated Actual Value of Taxable Property 125
Property Tax Rates - Direct and Overlapping Governments 126
Principal Property Tax Payers 128
Property Tax Levies and Collections 129
Debt Capacity
Direct and Overlapping Governmental Activities Debt 131
Legal Debt Margin Information 132
Demographic and Economic Information
Demographic and Economic Statistics 134
Principal Sales Tax Producers 136
Principal Employers 137
Operating Information
Full-time Equivalent City Government Employees by Function 139
Operating Indicators by Function 140
Capital Asset Statistics by Function 142
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December 27, 2019
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, 2019, 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 unit 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.
White Nelson Diehl Evans, LLP, a firm of licensed certified public accountants, has
audited the City's financial statements. The goal of the independent audit was to provide
reasonable assurance the City's financial statements for the fiscal year ended June 30,
2019 are free of material misstatement. The independent auditor concluded it was
reasonable to render an unmodified opinion and that the City's financial statements for
the fiscal year ended June 30, 2019, are fairly presented in conformity with GAAP. Their
report is presented in the beginning of the financial section of this report.
Management's Discussion and Analysis (MD&A) immediately follows the independent
auditors' report and provides a narrative overview and analysis of the basic financial
statements. This letter of transmittal is designed to complement the MD&A and should be
read in conjunction with it.
City of Rancho Palos Verdes Profile
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
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incorporated September 7, 1973, and currently has land area of 13.6 square miles and a
population of about 42,000. 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 City
Council, which consists of five Council Members, including the Mayor and Mayor Pro-
Tem. The City 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 City Council, for overseeing the day-to-day operations of the City, and for appointing
the heads of the City’s departments. The City 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 City Council designates the Mayor and
Mayor Pro-Tem for a one-year term.
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 unit, the Rancho Palos Verdes 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.
FINANCIAL INFORMATION
Budgetary 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 and the Improvement Authority
Commission. Activities of the General fund, Special Revenue funds, Capital Projects
funds and Permanent funds are included in the annual appropriated budgets of the
government units. The level of budgetary control (that is, the level at which expenditures
cannot legally exceed the appropriated amount) is established at the department/function
level within each fund. Formal budgetary integration is employed as a management
control device. The City also maintains an encumbrance accounting system as one
method of maintaining budgetary control. These encumbrances lapse at year-end, and
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any unexpended balance is eligible to be carried over to the following year's budget
appropriations with City Council approval.
Adopted Budget to Actual Comparison
The City experienced an overall $3.5 million favorable budget variance in the General
fund for the fiscal year ended June 30, 2019. The City also experienced a favorable
revenue variance of $700,000 greater than budgeted and $2.8 million in expenditures
below budget. Consequently, this resulted in a net change to fund balance in the amount
$3.5 million. Much of the positive expenditure variances were permanent savings
resulting from conservative budget practices, savings from vacant positions, and the
continued careful management of resources during FY 2018-19.
Financial Policies
The City Council has established Reserve policies for the General Fund of 50 percent of
the annual operating expenditures in the General Fund. Reserve levels are reviewed
annually during the budget process. This reserve may be used at the discretion of the
City Council to provide for economic uncertainties, local disasters, contingencies for
unseen operating or capital needs, cash flow requirements and/or other financial
hardships or downturns in the local or national economy. At June 30, 2019, the reserve
balance is $12.8 million or 50 percent of fiscal year 2018-19 General Fund operating
budget.
The City also maintains a $3 million reserve in the Capital Improvement Projects (CIP)
fund as a reserve for major improvement projects related to roadways, storm drains,
parks, buildings, rights-of-way, and the sewer system.
Internal Control
The Finance 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.
Significant Financial Events
There were no changes to financial policies that resulted in a significant impact on the
June 30, 2019 financial statements.
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Long-term Financial Planning
The City utilizes two long-term planning tools that serve as a guide to best allocate
resources to meet the City’s needs over time. The first of which is the Five-Year Capital
Improvement Program (CIP). The CIP provides efficient and effective delivery of
resources for improvement and maintaining public infrastructure and facilities. The Five-
Year Capital Improvement Plan is updated annually during the budget process.
The second long-term planning tool is the City’s Five-Year Financial Model (Model). The
Model establishes the foundation for guiding policy and making financial decisions, taking
into account any forecasted challenges and opportunities before they arise. This Model
allows for creation of baseline and alternative revenue and spending forecasts, including
historic and projected annual periods for the next five years. The Model also allows for
testing the impact of assumptions and proposed initiatives on projected budget gaps and
fund balances.
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 City’s
commitment to ensuring that its citizens are able to live and work in a thriving
environment.
The City received formal approval from the federal government to transfer
oversight of the Civic Center property on Hawthorne Boulevard from the National
Park Service (NPS) to the U.S. General Services Administration (GSA) on behalf
of the Department of Justice (DOJ) and the Federal Emergency Management
Agency (FEMA). The transfer culminates a 25-year effort to lift longstanding
restrictions that limit uses of the property, a former Nike missile post that has been
home to Rancho Palos Verdes City Hall since the 1970s. This change will enable
the City to add public safety uses to the Civic Center site, such as a fire station,
Sheriff’s Department substation, an upgraded helipad and a state-of-the-art
emergency operations center. City Administration is working with the Civic Center
Advisory Committee to develop proposed program for the new Civic Center
property.
Adopted the Rancho Palos Verdes Natural Communities Conservation
Plan/Habitat Conservation Plan (NCCP/HCP), which sets aside the 1,400 acres
Palos Verdes Nature Preserve in perpetuity for species and habitat preservation.
This plan provides for streamlined project approvals and differs from project-by-
project permitting, and establishes a regional conservation approach for
comprehensive reserve planning for both the core and linkage habitats for covered
species.
A new Ranger Program has been created and approved for Preserve management
and enforcement. This program doubles the staffing for additional presence and
provides for seven day a week coverage.
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Adopted the Ladera Linda Park and Community Center Masterplan and continued
the plan to proceed with Phase 2 of the project, the creation of detailed construction
drawings. This phase will include the generation of detailed cost estimates and
project financing alternatives.
Revised the City’s General Plan, which underlies all land use decisions in a city.
This plan provides a basis for local government decision-making, including
decisions on development approvals and exactions, provide residents with
opportunities to participate in the planning and decision-making processes of their
communities and provide the ground rules that guide development within a
particular community.
Updated the City’s Coyote Masterplan, which emphasizes public outreach to raise
awareness of coyote attractants and deterrents. The goal of the Plan is to
encourage and support coexistence with urban coyotes using education, behavior
modification and development of a tiered response to aggressive coyote behavior.
Installed new lighting at the Palos Verdes Interpretive Center Parking Lot and
installed new exhibits showcasing historical pieces of the City.
Completed the Pavement Management plan, which is updated every three years
to evaluate the condition of the City’s roadway system and to help plan for future
road and street improvements. This year, the City resurfaced 1.3 million square
feet of residential roadway, in order to keep up with the goal of maintaining 95% of
our roads in very good condition.
Continued our commitment to ensuring public safety; this year, we saw a decrease
of 36% in vehicle burglaries and 16% in residential burglaries. Rancho Palos
Verdes continues to be one of the safest cities in the state, recognized as #7 Safest
City in California by Safewise.
In recent years, Southern California Edison (SCE) altered its long-standing
corporate policy and established a mechanism that allowed local governments the
opportunity to purchase SCE-owned street lights within their jurisdictions.
Obtaining ownership of these street lights allows the City to convert the lamps to
energy-efficient light-emitting diodes (LEDs). City ownership also yields greater
responsiveness and timely maintenance, and allows for the use of technological
advancements including placement of automated license plate recognition (ALPR)
cameras and/or control of the placement of any wireless telecommunications
devices or the poles. This year, the City purchased about 1,800 of these lights and
plans to convert the lamps to LEDs.
To enhance neighborhood safety, the City purchased Automated License Plate
Reader (ALPR) Cameras to be installed in the Eastview area. The City also
implemented a security camera loaner program for residents to use while away on
vacation, during home renovation, or if a residential burglary occurred in
surrounding neighborhood area. Additionally, our public safety group educated
residents about Ring’s “Neighbors” app to enhance neighborhood safety. Over
200 residents participated in the education program.
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OTHER INFORMATION
Independent Audit
The City requires an annual audit by independent certified public accountants. The
accounting firm of White Nelson Diehl Evans 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.
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 $750,000
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 the Uniform Guidance. For the year ended June
30, 2019, the City did not expend over $750,000 on Federal financial assistance
programs; and therefore a Single Audit is not required.
GFOA Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Finance Reporting to the City of
Rancho Palos Verdes for its CAFR for the fiscal year ended June 30, 2018. This was the
25th consecutive year that the City has achieved this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized CAFR. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that 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.
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xiii
C ity of Rancho Palos Verdes
Comprehensive Annual Financial Report
FY2018-2019
CITY OFFICIALS
FY2018-2019
CITY STAFF
Interim City Manager
Ara Mihranian
Interim Deputy City Manager………………………………….………….Kit Fox
Interim Director of Finance…………………………………................Angelina Garcia
Director of Recreation and Parks…........................................Cory Linder
Interim Director of Community Development………………….…Terry Rodrigue
Director of Public Works……………………………………………………..Elias Sassoon
RESIDENTS OF RANCHO PALOS VERDES
CITY COUNCIL
PLANNING
COMMISSION FINANCE ADVISORY
COMMITTEE
INFRASTRUCTURE
MANAGEMENT
ADVISORY COMMITTEE
TRAFFIC SAFETY COMMITTEE
EMERGENCY PREPAREDNESS COMMITTEE
STORM DRAIN
OVERSIGHT
COMMITTEE (WQFPP)
CITY MANAGER
CITY ATTORNEY
DEPUTY CITY
MANAGER
FINANCE PUBLIC WORKSCOMMUNITY
DEVELOPMENT RECREATION &
PARKS INFORMATION
TECHNOLOGY
HUMAN
RESOURCESCITY CLERK PUBLIC SAFETY
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FINANCIAL SECTION
2875 Michelle Drive, Suite 300 | Irvine, California 92606 | WNDECPA.com | 714.978.1300
1
INDEPENDENT AUDITORS’ REPORT
City Council Members
City of Rancho Palos Verdes
Rancho Palos Verdes, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Rancho Palos Verdes
(the City), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the basic
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the City’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
2
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 activities, each major fund, and the aggregate
remaining fund information of the City of Rancho Palos Verdes, as of June 30, 2019, and the respective changes
in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the
general fund and state grants special revenue fund for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedule of proportionate share of the net pension liability, and the schedule of pension
contributions, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City’s basic financial statements. The introductory section, combining statements and individual fund
schedules, and statistical section are presented for purposes of additional analysis and are not a required part of
the basic financial statements.
The combining statements and individual fund schedules, as listed in the table of contents, are the responsibility
of management and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining statements
and individual fund schedules are fairly stated in all material respects in relation to the basic financial statements
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 do not express an opinion or provide any assurance on
them.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2019, on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering City’s internal control over financial reporting and compliance.
Irvine, California
December 27, 2019
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MANAGEMENT’S DISCUSSION & ANALYSIS
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
5
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, 2019. 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 v-xi of this report.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City of Rancho Palos
Verdes exceeded its liabilities and deferred inflows of resources at the close of
the Fiscal Year ended June 30, 2019, by $223.5 million (Net Position). Of this
amount, $47.7 million (Unrestricted Net Position) may be used to meet the City’s
ongoing obligations to its citizens and creditors. The remaining amount is
invested in capital assets or is otherwise restricted, and therefore not available to
meet the City’s obligations.
The City’s total Net Position increased by $1.7 million from the prior year, primarily
from the Governmental activities increase in the amount of $2.3 million and a
decrease of $0.6 million from Business-type activities. As explained further in this
report, Governmental activities received transfers of $34.3 million from the
Business-type activities due to the closing of the Water Quality Flood Protection
from the Enterprise Fund.
As of June 30, 2019, the City’s Governmental Funds reported combined ending
Fund Balances of $61.5 million, an increase of $2.2 million in comparison with the
prior year. A significant portion of this increase is due to the City’s continued
revenue growth and other grants and contributions. Additionally, the net increase
is attributable to the timing of capital outlays and overall expenses being less than
the previous year.
At the end of the current fiscal year, the General Fund reported an increase in fund
balance in the amount of $2.7 million. The increase is due primarily to higher than
expected inflow from licenses, permits, franchise tax, and savings from
expenditures.
As of June 30, 2019, unassigned fund balance for the General Fund was $19.4
million or 78% of the General Fund expenditures. Of this amount, $19.1 million
constitutes the City Council’s General Fund Reserve (rainy day fund).
Due to the City Council’s reserve policy, the unassigned fund balance has
historically been maintained at or above the policy threshold level of 50% of
annually budgeted General Fund expenditures. At the end of the current fiscal
year, the General Fund expenditures including transfers was $28.9 million, which
is 67% of the unassigned fund balance.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
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OVERVIEW OF THE BASIC 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 Position presents information on all of the City’s assets, deferred
outflows of resources, liabilities, and deferred inflows of resources, with the difference
between the two reported as Net Position. Over time, increases or decreases in net
position 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
position changed during the most recent Fiscal Year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of
the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes and earned but unused vacation leave).
Both the Government-Wide Financial Statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business-type activities). The governmental activities of
the City include general government, public safety, public works, community development
and parks 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
Improvement Authority for which the City of Rancho Palos Verdes is financially
accountable. Financial information for this Component Unit has been included as an
integral part of the primary government.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
7
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS (CONTINUED)
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 30 individual Governmental Funds during
the Fiscal Year ended June 30, 2019. 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, State
Grants Special Revenue Fund and the Capital Improvements Fund, all of which are
considered to be major funds. Data from the other 30 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.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
8
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS (CONTINUED)
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.
Proprietary Funds
The City of Rancho Palos Verdes maintains two types of Proprietary Funds. Enterprise
Funds are used to report the same functions presented as business-type activities in the
Government-Wide Financial Statements. The City uses an Enterprise Fund to account
for its Water Quality and Flood Protection Program. Internal Service Funds are an
accounting device used to accumulate and allocate costs internally among the City’s
various functions. The City uses Internal Service Funds to account for its fleet of vehicles,
computer systems, furniture and equipment, and Civic Center building
replacement/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 29-31 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.
Fiduciary Fund
The City is a fiduciary for the Successor Agency to the Rancho Palos Verdes
Redevelopment Agency (the “Successor Agency”). The City is responsible for ensuring
that the assets reported in the Successor Agency’s private-purpose trust fund are only:
1) used to extinguish the obligations of the former RDA; or 2) transferred to another
agency pursuant to state redevelopment dissolution law. All of the fiduciary activities are
reported in a separate Statement of Fiduciary Net Position and Statement of Changes in
Fiduciary Net Position. We exclude these activities from the City’s Government-Wide
Financial Statement because the City cannot use these assets to finance its operations.
Individual Fiduciary Fund statements can be found on pages 32-33 of this report.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
9
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS (CONTINUED)
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 35-68 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 69-110 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position 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 and deferred
outflows of resources exceeded liabilities and deferred inflows of resources by $223.5
million at June 30, 2019. By far, the largest portion of the City’s Net Position of $159.6
million or 71% reflects its net investment in Capital Assets (e.g. Land, Infrastructure,
Buildings, and Equipment). The City uses these Capital Assets to provide services to its
citizens; consequently, these assets are not available for future spending.
Summary of Net Position
2019 2018 2019 2018 2019 2018
Current and other assets 77,547,330$ 74,878,019$ -$ 1,031,929$ 77,547,330$ 75,909,948$
Capital assets 159,556,834 125,420,414 - 34,996,398 159,556,834 160,416,812
Total assets 237,104,164 200,298,433 - 36,028,327 237,104,164 234,598,204
Deferred outflows of resources 2,871,414 3,243,597 - - 2,871,414 2,804,770
Long-term liabilities outstanding 10,995,129 11,202,942 - - 10,995,129 11,202,942
Other liabilities 4,780,662 5,111,936 - 1,159,540 4,780,662 6,271,476
Total liabilities 15,775,791 16,314,878 - 1,159,540 15,775,791 14,769,289
Deferred inflows of resources 734,107 338,809 - - 734,107 338,809
Net Investment in capital assets 159,556,834 125,420,414 - 34,996,398 159,556,834 160,416,812
Restricted 16,170,342 17,300,320 - - 16,170,342 17,300,320
Unrestricted 47,738,504 44,167,609 - (127,611) 47,738,504 44,039,998
Total net position 223,465,680$ 186,888,343$ -$ 34,868,787$ 223,465,680$ 221,757,130$
Governmental Business-type
Activities Activities Total
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
10
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
A portion of the City’s Net Position of $16.2 million or 7%, represents resources subject
to external restrictions. The remaining balance of Unrestricted Net Position of $47.7
million or 21 % may be used to meet the government’s ongoing obligations to its citizens
and creditors.
Total current and other assets increased by $1.6 million in comparison to the previous
year. The majority of the increase is due to the continued revenue growth, other grants
and contributions, and overall expenses being less than the previous year.
Total capital assets decreased by $0.9 mainly from less construction in progress from
prior year. Additionally, $34.3 million of capital assets in the Water Quality Flood
Protection Enterprise Fund (Business-type activities) were transferred to the General
Fund (Governmental activities), upon the closing of the Water Quality Flood Protection
Program. The City Council eliminated the collection of storm drain user fees, with a sunset
date occurring in FY 2015-2016. These fees were previously collected to fund the
maintenance and improvements of the City-owned storm drain facilities. As of June 30
2019, the final phase of the storm drain project funded by the remaining balance in the
Water Quality Flood Protection Enterprise Fund has been completed. All subsequent
activities will be recorded in the General Fund and Capital Improvement Fund. As such,
the assets from the Business-type activities were transferred to the Governmental
activities.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
11
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Statement of Activities
2019 2018 2019 2018 2019 2018
Program revenues:
Charges for services 4,292,011$ 4,626,968$ -$ -$ 4,292,011$ 4,626,968$
Operating contributions and grants 4,608,132 4,481,324 - - 4,608,132 4,481,324
Capital contributions and grants 1,136,762 769,248 - - 1,136,762 769,248
General revenues:
Property taxes 14,349,681 13,761,647 - - 14,349,681 13,761,647
Other taxes 12,802,577 12,504,276 - 12,802,577 12,504,276
Other 2,222,040 1,600,966 200,000 28,934 2,422,040 1,629,900
Total revenues 39,411,203 37,744,429 200,000 28,934 39,611,203 37,773,363
Administration 6,562,703$ 7,258,049$ -$ 6,562,703$ 7,258,049$
Public safety 7,214,441 7,338,918 - 7,214,441 7,338,918
Public works 16,064,163 16,072,939 - 16,064,163 16,072,939
Community development 3,051,881 2,735,948 - 3,051,881 2,735,948
Parks and recreation 3,064,444 2,726,331 - 3,064,444 2,726,331
Non-departmental 1,133,906 1,166,154 - 1,133,906 1,166,154
Water Quality Flood Protection - - 811,115 1,070,747 811,115 1,070,747
Total expenses 37,091,538 37,298,339 811,115 1,070,747 37,902,653 38,369,086
Transfers 34,257,672 - (34,257,672) - - -
(Decrease) / Increase in net position 36,577,337 446,090 (34,868,787) (1,041,813) 1,708,550 (595,723)
Net position - beginning of fiscal year 186,888,343 186,442,253 34,868,787 35,910,600 221,757,130 222,352,853
Net position - end of fiscal year 223,465,680$ 186,888,343$ -$ 34,868,787$ 223,465,680$ 221,757,130$
Governmental Business-type
Activities Activities Total
As illustrated in the chart above, the City’s net position increased by $1.7 million when
compared to the prior year. Of the increased amount, $2.3 was an increased from the
Governmental activities and a decrease of $0.6 million from the Business-type activities.
Governmental Activities
Overall, government-wide revenues for the fiscal year ended June 30, 2019, increased
by $1.8 million. The increased amount was primarily from the continued revenue growth
in property taxes and a capital grant from Proposition A Los Angeles County Regional
Parks and Open Space for the Lower Hesse Park Improvement Project.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
12
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
The percentages of each category for the sources of revenues are illustrated in the
following chart.
Sources of Revenue - Governmental Activities
The government-wide expenses for the fiscal year ended June 30, 2019, decreased by
$0.5 million from the prior year. The majority of the decreased amount was from the
ongoing capital and maintenance projects that were not completed by year-end.
Additionally, the City also realized some savings from salaries and benefits due to the
employee vacancies that were not filled by the end of the fiscal year. The percentages of
each function for the expenses are illustrated in the following chart.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
13
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Expenses by Function – Governmental Activities
Business-Type Activities
As of June 30, 2019, the final phase of the storm drain project funded by the remaining
balance in the Water Quality Flood Protection Enterprise Fund has been completed. As
such, the assets in the amount of $34.3 million from the Business-type activities were
transferred to the Governmental activities. All subsequent activities will be recorded in
the General Fund and Capital Improvement Fund.
FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS
As of the end of the current fiscal year, the City’s Governmental Funds reported combined
ending Fund Balances of $61.5 million, a decrease of $2.2 million in comparison to the
prior year. Approximately $58.6 million or 95% of the combined ending Fund Balances
constitutes spendable fund balance. The remainder of the combined ending Fund
Balances are either non-spendable due to legal restrictions or non-spendable in the form
of prepaid items and inventory. Additional information on the non-spendable items can be
found in Note 7 on pages 51-53 of this report.
The General Fund is the chief operating fund of the City of Rancho Palos Verdes. At the
end of the current fiscal year, the unassigned fund balance of the General Fund is $19.4
million, while total Fund Balance reached to $20.8 million. As a measure of the General
Fund’s liquidity, it may be useful to compare both Unassigned Fund Balance and Total
Fund Balance to total fund uses (expenditures and transfers out). Unassigned Fund
Balance represents 67% of total General Fund uses, while total Fund Balance represents
71% of the same amount.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
14
FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS (CONTINUED)
The fund balance of the City’s General Fund increased by $2.7 million from the prior year.
The increase is due to the higher than expected inflow of revenues including property
taxes, franchise taxes, licenses, permits, and savings from maintenance and capital
outlay expenses that were not completed by year-end. Additional details on General Fund
are provided in the General Fund Highlights.
The State Grant Special Revenue Fund has a deficit fund balance of $0.6 million at the
end of the current fiscal year. The deficit will be eliminated by recognition of revenue not
available as of year-end and through transfers from other funds. The grant monies are
estimated to be reimbursed in the next fiscal year.
The Capital Improvements Fund Balance ended the year with an increase of $2.6 million
from the prior year. The majority of the decrease is largely from the budgeted capital
outlay projects that were not completed by year-end. These projects are primarily from
the street rehabilitation program and the City’s Streetlight Acquisition that will continue in
the next fiscal year.
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. The Net Position of the
Enterprise Fund at the end of the fiscal year is $0, a decrease of $34.9 million from the
prior year. At the end of the current fiscal year, the Water Quality Flood Protection
Enterprise Fund was closed as the fund no longer collects user fees. Additionally, the
final phase of the storm drain project using the remaining balance has been completed.
As such, the assets in the amount of $34.3 million from the Business-type activities were
transferred to the Governmental activities. All subsequent activities will be recorded in
the General Fund and Capital Improvement Fund.
The Net Position of the Internal Service Funds at the end of the fiscal year amounted to
$3.1 million, a decrease to the Net Position by $0.1 million. The decreased amount is due
to the payments made for the City’s new permitting system and financial software.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
15
FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS (CONTINUED)
General Fund Budgetary Highlights
The City of Rancho Palos Verdes’ budget is prepared over the course of several months,
beginning with a thorough review and analysis of the prior fiscal year between September
and December. The General Fund actual year-end results show operations ending the
year with total revenues of almost $31.6 million and just under $24.9 million of
expenditures. When including net transfers of $4.1 million there is a positive variance of
$2.7 million (revenues to expenditures).
The increase in revenues is due primarily to higher than expected inflow from property tax,
franchise tax, user utility tax, interest earnings, and other miscellaneous revenues.
Savings from expenditures are due to underruns in salaries and benefits, professional and
technical services, repairs and maintenance, and supplies.
Revenue Highlights
Taxes
Make up City’s largest revenue sources. Taxes include property tax, transient
occupancy tax, and sales tax. Tax revenues came in slightly higher than final
budget by $255,000 or just under 1%. This increase was due primarily to secured
property tax, franchise tax, and gas user utility tax actual revenues ending the year
higher than expected.
Use of Money and Property
Consists of interest earnings and rental & lease revenue. These revenue sources
combined came in at approximately $260,000 or 44% higher than the final budget.
The majority of this increase, $211,000, is the result of continued growth in interest
earnings as returns have increased over the past 12 months.
Expenditure Highlights
Salaries & Benefits
Combined ended the year almost $974,000 or 9% under final budget. This is
due to several unanticipated employee separations in the fourth quarter.
Professional & Technical Services
This category came in approximately $1 million under final budget. This
underrun is due to delayed services and planned services that were not
utilized during the fiscal year.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
16
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. The City’s investment in Capital Assets for its Governmental activities
and Business-type activities as of June 30, 2019, amounts to $159.6 million (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 governmental capital assets increased by $34.1 million or 21%
primarily from the transfer of the capital assets from the Business-type activities.
Major capital asset events during the current fiscal year included the following:
Depreciation of $5.6 million was recorded for the City’s Capital Assets.
A total of $5.4 million of construction in progress was added primarily from the
residential and street improvements, beautification projects, and improvement
of the Palos Verdes Interpretive Center Exhibit.
The Capital Assets (net of accumulated depreciation) for Business-type activities as of
June 30, 2019 is $0.
City of Rancho Palos Verdes Capital Assets (Net of Depreciation)
2019 2018 2019 2018 2019 2018
Capital assets not being depreciated
Land 43,515,818$ 42,087,575$ -$ 1,428,243$ 43,515,818$ 43,515,818$
Construction in progress 3,130,630 1,646,826 - 4,432,416 3,130,630 6,079,242
Total capital assets not being depreciated 46,646,448 43,734,401 - 5,860,659 46,646,448 49,595,060
Capital assets being depreciated, net
Buildings 7,193,177 6,743,360 - - 7,193,177 6,743,360
Vehicles 104,423 145,398 104,423 145,398
Computer equipment 91,141 182,326 91,141 182,326
Equipment - water quality - - - -
Furniture, fixtures and equipment 188,377 298,841 188,377 298,841
Infrastructure -
Roadway system 56,131,059 55,395,146 56,131,059 55,395,146
Sewer system 4,937,865 5,391,539 4,937,865 5,391,539
Storm drain system 8,671,515 8,939,039 - 29,135,739 8,671,515 38,074,778
Storm drain system - water quality 30,422,761 - - - 30,422,761 -
Park system 5,170,068 4,590,364 5,170,068 4,590,364
Total capital assets being depreciated, net 112,910,386 81,686,013 - 29,135,739 112,910,386 110,821,752
Capital Assets, net 159,556,834$ 125,420,414$ -$ 34,996,398$ 159,556,834$ 160,416,812$
Governmental Business-type
Activities Activities Total
C ity of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
17
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Additional information on the City’s Capital Assets can be found in Note #4 on pages 48-
49 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 $400,504 for Employee Compensated Absences.
City of Rancho Palos Verdes Outstanding Debt
2019 2018
Employee compensated absences 400,504 424,249
Total 400,504$ 424,249$
Governmental
Activities
At the fiscal year ended June 30, 2019, the City’s total debt decreased by $0.02 million
or 6%.
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 $1,935,260,000.
ECONOMIC FACTORS AND NEXT YEAR BUDGETS AND RATES
The City historically follows a very fiscally conservative forecasting model and continued
that practice with the FY 2018-19 budget. Based on this practice, the City maintains a
healthy financial outlook and supports the General Fund operations with only recurring
tax revenue. Roughly 43% of the City’s revenue comes from Property Tax, a stable
revenue source with steady predictable growth year over year.
During FY 2018-19 total property values within the city grew by 5.576%. There has
been an increase in the demand for housing especially in the coastal areas. Home
values are expected to rise through 2020 to an average state value of over $593,000 by
the end of 2020. The median sales price of a detached single family residence in
Rancho Palos Verdes reached $1,340,000, 11.7% higher than the peak median price
before the 2008 recession.
City of Rancho Palos Verdes
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2019
18
ECONOMIC FACTORS AND NEXT YEAR BUDGETS AND RATES
Transient Occupancy Tax (TOT) receipts from a major hotel resort support a strong
capital program and while the current long-term forecast for TOT is moderate growth over
the next five years there are adequate revenues and reserves to meet the needs of the
community. The City-wide annual budget continues to showcase the City’s commitment
to fiscal prudence, predicated on maintaining a structurally sound operating budget, lean
staffing, healthy cash reserves and absence of debt.
The Los Angeles County Economic Development Corporation (LAEDC), expects, all else
being relatively equal, the trend of aggregate Californian economic confidence should
continue. The forecast concluded the following state statistics:
A 3.0 percent gross state product growth in both 2019 and 2020, exceeding the
national forecast of 2.2 percent in 2019 and 2.4 percent in 2020.
An unemployment rate of 3.7 percent in 2019 and 3.4 percent in 2020.
REQUESTS FOR INFORMATION
This Financial Report is designed to provide a general overview of the financial position
of the City of Rancho Palos Verdes for all those with an interest in the government’s
finances. Questions concerning any of the information provided in this report, or requests
for additional financial information, should be addressed to the Finance Department at
30940 Hawthorne Boulevard, Rancho Palos Verdes, CA 90275 or finance@rpvca.gov.
BASIC FINANCIAL STATEMENTS
Governmental Business-type
Activities Activity Total
ASSETS
CURRENT ASSETS:
Cash and investments 65,188,261$ -$ 65,188,261$
Receivables:
Taxes 1,864,679 - 1,864,679
Interest 200,679 - 200,679
Notes 8,313,954 - 8,313,954
Other 963,298 - 963,298
Inventory 19,454 - 19,454
Prepaid costs 997,005 - 997,005
TOTAL CURRENT ASSETS 77,547,330 - 77,547,330
NONCURRENT ASSETS:
Receivable from Successor Agency 10,620,275 - 10,620,275
Allowance for Successor Agency receivable (10,620,275) - (10,620,275)
Capital assets, not being depreciated:
Land 43,515,818 - 43,515,818
Construction in progress 3,130,630 - 3,130,630
Capital assets, being depreciated, net:
Property and equipment 383,941 - 383,941
Buildings and improvements 7,193,177 - 7,193,177
Infrastructure 105,333,268 - 105,333,268
TOTAL NONCURRENT ASSETS 159,556,834 - 159,556,834
TOTAL ASSETS 237,104,164 - 237,104,164
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 2,871,414 - 2,871,414
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities 3,532,666 - 3,532,666
Retentions payable 233,468 - 233,468
Unearned revenue 9,835 - 9,835
Deposits payable 677,478 - 677,478
Current portion of noncurrent liabilities 327,215 - 327,215
TOTAL CURRENT LIABILITIES 4,780,662 - 4,780,662
NONCURRENT LIABILITIES:
Due beyond one year 73,289 - 73,289
Net pension liability 10,921,840 - 10,921,840
TOTAL NONCURRENT LIABILITIES 10,995,129 - 10,995,129
TOTAL LIABILITIES 15,775,791 - 15,775,791
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 734,107 - 734,107
NET POSITION
Net invested in capital assets 159,556,834 - 159,556,834
Restricted for:
Expendable 14,268,162 - 14,268,162
Nonexpendable 1,902,180 - 1,902,180
Unrestricted 47,738,504 - 47,738,504
TOTAL NET POSITION 223,465,680$ -$ 223,465,680$
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET POSITION
June 30, 2019
See accompanying notes to basic financial statements.
19
Operating Capital
Charges for Grants and Grants and
Functions/programs Expenses Services Contributions Contributions
Governmental Activities:
Administration 6,562,703$ 1,064,583$ 1,359$ -$
Public safety 7,214,441 104,134 150,863 -
Public works 16,064,163 227,162 4,455,910 1,136,762
Parks and recreation 3,064,444 765,787 - -
Community development 3,051,881 2,130,345 - -
Non-departmental 1,133,906 - - -
Total governmental activities 37,091,538 4,292,011 4,608,132 1,136,762
Business-type Activity:
Water Protection Flood Control 811,115 - - -
Total primary government 37,902,653$ -$ 4,608,132$ 1,136,762$
General revenues:
Taxes:
Property taxes
Transient occupancy tax
Franchise tax
Utility user tax
Other taxes
Unrestricted intergovernmental revenue - shared sales tax
Investment income
Unrestricted grants, contributions and other revenues
Total general revenues
Transfers
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
For the year ended June 30, 2019
See accompanying notes to basic financial statements.
20
Net Revenue (Expense) and
Changes in Net Position
Governmental Business-type
Activities Activity Total
(5,496,761)$ -$ (5,496,761)$
(6,959,444) - (6,959,444)
(10,244,329) - (10,244,329)
(2,298,657) - (2,298,657)
(921,536) - (921,536)
(1,133,906) - (1,133,906)
(27,054,633) - (27,054,633)
- (811,115) (811,115)
(27,054,633) (811,115) (27,865,748)
14,349,681 - 14,349,681
5,645,497 - 5,645,497
2,149,743 - 2,149,743
1,917,107 - 1,917,107
429,049 - 429,049
2,661,181 - 2,661,181
1,313,004 - 1,313,004
909,036 200,000 1,109,036
29,374,298 200,000 29,574,298
34,257,672 (34,257,672) -
36,577,337 (34,868,787) 1,708,550
186,888,343 34,868,787 221,757,130
223,465,680$ -$ 223,465,680$
21
Special Capital
Revenue Projects Other Total
State Capital Governmental Governmental
General Grants Improvements Funds Funds
Cash and investments 20,473,726$ -$ 27,331,551$ 14,691,570$ 62,496,847$
Receivables:
Taxes 1,847,906 - - 16,773 1,864,679
Interest 63,949 - 80,628 48,177 192,754
Other 83,005 444,320 - 435,973 963,298
Due from other funds 667,359 - - - 667,359
Inventory 19,454 - - - 19,454
Prepaid items 997,005 - - - 997,005
Receivable from Successor Agency 10,620,275 - - - 10,620,275
Allowance for Successor Agency Receivable (10,620,275) - - - (10,620,275)
TOTAL ASSETS 24,152,404$ 444,320$ 27,412,179$ 15,192,493$ 67,201,396$
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable and accrued liabilities 2,324,224$ 158,604$ 313,694$ 724,126$ 3,520,648$
Due to other funds - 541,410 - 125,949 667,359
Retentions payable 127,872 8,047 81,294 16,255 233,468
Unearned revenue - - - 9,835 9,835
Deposits payable 677,478 - - - 677,478
TOTAL LIABILITIES 3,129,574 708,061 394,988 876,165 5,108,788
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 234,283 300,000 - 63,086 597,369
FUND BALANCES (DEFICITS):
Non-Spendable
Endowment principal - - - 750,000 750,000
Reimbursement settlement agreement - - - 1,000,000 1,000,000
Prepaid items 997,005 - - - 997,005
Inventory 19,454 - - - 19,454
Habitat restoration - - - 152,180 152,180
Restricted - - 1,917,100 12,351,062 14,268,162
Committed 341,432 - - - 341,432
Assigned - - 25,100,091 - 25,100,091
Unassigned 19,430,656 (563,741) - - 18,866,915
TOTAL FUND BALANCES (DEFICITS) 20,788,547 (563,741) 27,017,191 14,253,242 61,495,239
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 24,152,404$ 444,320$ 27,412,179$ 15,192,493$ 67,201,396$
ASSETS
CITY OF RANCHO PALOS VERDES
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2019
See accompanying notes to basic financial statements.
22
Fund balances - total governmental funds 61,495,239$
Amounts reported for governmental activities in the Statement of Net Position 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.159,172,893
Receivables not available to pay for current period expenditures are reported as unavailable 597,369
revenue in the financial statements.
Long-term notes receivable are not current available resources and, therefore, do not affect the
governmental fund balance.8,313,954
Long-term liabilities are not due and payable in the current period and, therefore, are not reported
in the governmental funds.(400,504)
The pension liability and related amounts are not due and payable in the current period and,
therefore, are not reported in the governmental funds. Deferred outflows of resources and deferred inflows
of resources related pensions are only reported in the Statement of Net Position as the changes in these
amounts affect only the government-wide statements for governmental activities:
Net pension liability (10,921,840)
Deferred outflows of resources related to pensions 2,871,414
Deferred inflows of resources related to pensions (734,107)
Internal service funds are used by management to charge the costs of certain activities, including
equipment and building replacement to individual funds. The assets and liabilities of the
internal service funds are included in the Statement of Net Position. 3,071,262
Net position of governmental activities 223,465,680$
BALANCE SHEET TO THE STATEMENT OF NET POSITION
June 30, 2019
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE GOVERNMENTAL FUNDS
See accompanying notes to basic financial statements.
23
Special Capital
Revenue Projects Other Total
State Capital Governmental Governmental
General Grants Improvements Funds Funds
REVENUES:
Taxes 27,315,505$ -$ -$ 782,545$ 28,098,050$
Licenses and permits 2,204,606 - - - 2,204,606
Revenue from other agencies 1,359 144,320 5,007 5,007,422 5,158,108
Charges for services 26,881 - - 188,142 215,023
Fines and forfeitures 331,226 - - - 331,226
Use of money and property 845,137 - 508,963 302,022 1,656,122
Other revenues 893,950 - - 131,722 1,025,672
TOTAL REVENUES 31,618,664 144,320 513,970 6,411,853 38,688,807
EXPENDITURES:
Current:
Administration 5,580,819 - - - 5,580,819
Public safety 7,214,441 - - - 7,214,441
Public works 5,191,136 408,061 - 7,947,144 13,546,341
Parks and recreation 2,682,426 - - 86,344 2,768,770
Community development 3,051,881 - - - 3,051,881
Non-departmental 1,133,906 - - - 1,133,906
Capital outlay - - 3,291,424 - 3,291,424
TOTAL EXPENDITURES 24,854,609 408,061 3,291,424 8,033,488 36,587,582
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 6,764,055 (263,741) (2,777,454) (1,621,635) 2,101,225
OTHER FINANCING SOURCES (USES):
Transfers in 292,384 - 5,389,170 345,000 6,026,554
Transfers out (4,346,852) (300,000) - (1,307,318) (5,954,170)
TOTAL OTHER FINANCING SOURCES
(USES) (4,054,468) (300,000) 5,389,170 (962,318) 72,384
NET CHANGE IN FUND BALANCES 2,709,587 (563,741) 2,611,716 (2,583,953) 2,173,609
FUND BALANCES - BEGINNING OF YEAR 18,078,960 - 24,405,475 16,837,195 59,321,630
FUND BALANCES - END OF YEAR (DEFICITS) 20,788,547$ (563,741)$ 27,017,191$ 14,253,242$ 61,495,239$
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2019
See accompanying notes to basic financial statements.
24
Net change in fund balances - total governmental funds 2,173,609$
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 is reconciled as follows:
Cost of assets capitalized 5,496,456
Contribution of net capital assets from the closing of the Water Quality Flood Protection Enterprise Fund 34,185,288
Depreciation expense (5,308,050)
Revenues in the Statement of Activities that do not provide current financial resources are not reported
as revenues in the funds.484,020
Increases in long-term notes receivable use current financial resources and are included in the expenditures
of governmental funds. Repayments of long-term notes receivable provide current financial resources and
are included in the revenues of governmental funds. These changes in notes receivable are not reflected in
the revenues or expenses of the Statement of Activities. This amount represents the net change in the
long-term notes receivable.188,117
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.23,745
Governmental funds report pension contributions as expenditures. However, in the Statement of Activities,
pension expense is measured as the change in net pension liability and the amortization of deferred
outflows and inflows relate to pensions. This amount represents the net change in pension related amounts.(564,632)
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 are reported with governmental activities.(101,216)
Change in net position of governmental activities 36,577,337$
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, 2019
See accompanying notes to basic financial statements.
25
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 27,060,300$ 27,060,300$ 27,315,505$ 255,205$
Licenses and permits 2,290,300 2,290,300 2,204,606 (85,694)
Revenue from other agencies - - 1,359 1,359
Charges for services 15,200 15,200 26,881 11,681
Fines and forfeitures 327,000 327,000 331,226 4,226
Use of money and property 585,400 585,400 845,137 259,737
Other revenues 644,900 644,900 893,950 249,050
TOTAL REVENUES 30,923,100 30,923,100 31,618,664 695,564
EXPENDITURES:
Administration
City council 154,600 150,300 96,253 54,047
City manager 856,500 848,182 791,758 56,424
Legal services 925,000 925,000 1,171,414 (246,414)
Community outreach 75,100 65,300 62,247 3,053
City clerk 621,200 524,176 449,727 74,449
RPV TV 289,400 238,400 179,550 58,850
Personnel 365,600 405,774 302,545 103,229
Finance 1,606,100 1,604,538 1,502,164 102,374
Information technology - Data 1,119,400 1,055,950 928,885 127,065
Information technology - Voice 113,000 105,000 96,276 8,724
Total Administration 6,125,900 5,922,620 5,580,819 341,801
Public safety
Sheriff 6,318,500 6,318,500 6,335,382 (16,882)
Special programs 868,600 972,211 783,421 188,790
Animal control - - (7,781) 7,781
Emergency preparedness 196,100 191,000 103,419 87,581
Total Public Safety 7,383,200 7,481,711 7,214,441 267,270
Public Works
Public works administration 2,767,300 2,530,713 2,155,313 375,400
Traffic management 563,000 586,020 460,402 125,618
Storm water quality 606,000 533,200 535,920 (2,720)
Building maintenance 679,900 569,875 453,630 116,245
Park/Trail/Open Space maintenance 1,316,000 1,422,014 989,471 432,543
Street landscape Maintenance - 453,709 573,850 (120,141)
Sewer maintenance 69,000 35,000 22,550 12,450
Total Public Works 6,001,200 6,130,531 5,191,136 939,395
(Continued)
Budgeted Amounts
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, 2019
See accompanying notes to basic financial statements.
26
Variance with
Final Budget
Positive
Original Final Actual (Negative)
EXPENDITURES (CONTINUED):
Parks and Recreation
Recreation administration 1,041,400 1,028,958 1,022,002 6,956
Recreation facilities 902,900 1,000,082 851,183 148,899
Special events 246,900 227,417 197,409 30,008
PVIC 546,200 544,674 513,420 31,254
REACH 95,300 91,600 69,328 22,272
Support services 22,400 22,400 29,084 (6,684)
Total Parks and Recreation 2,855,100 2,915,131 2,682,426 232,705
Community Development
Planning services 1,726,300 1,816,038 1,505,918 310,120
Building & safety 995,100 970,600 826,227 144,373
Code enforcement 307,800 307,800 189,361 118,439
View restoration/preservation 371,100 371,100 321,835 49,265
NCCP 50,000 50,000 11,445 38,555
Geology 150,000 150,000 107,253 42,747
Animal Control 136,000 136,000 89,842 46,158
Total Community Development 3,736,300 3,801,538 3,051,881 749,657
Non-departmental 1,323,200 1,110,646 1,133,906 (23,260)
TOTAL EXPENDITURES 27,424,900 27,362,177 24,854,609 2,507,568
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,498,200 3,560,923 6,764,055 (1,812,004)
OTHER FINANCING SOURCES (USES):
Transfers in 220,000 220,000 292,384 72,384
Transfers out (4,564,700) (4,564,700) (4,346,852) 217,848
TOTAL OTHER FINANCING
SOURCES (USES) (4,344,700) (4,344,700) (4,054,468) 290,232
NET CHANGE IN FUND BALANCE (846,500) (783,777) 2,709,587 (1,521,772)
FUND BALANCE - BEGINNING OF YEAR 18,078,960 18,078,960 18,078,960 -
FUND BALANCE - END OF YEAR 17,232,460$ 17,295,183$ 20,788,547$ (1,521,772)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED)
GENERAL FUND
For the year ended June 30, 2019
See accompanying notes to basic financial statements.
27
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 600,000$ 744,320$ 144,320$ (600,000)$
EXPENDITURES:
Public works - 965,645 408,061 557,584
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 600,000 (221,325) (263,741) (42,416)
OTHER FINANCING SOURCES (USES):
Transfers out - (300,000) (300,000) -
NET CHANGE IN FUND BALANCE 600,000 (521,325) (563,741) (42,416)
FUND BALANCE - BEGINNING OF YEAR - - - -
FUND BALANCE - END OF YEAR 600,000$ (521,325)$ (563,741)$ (42,416)$
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STATE GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2019
Budgeted Amounts
See accompanying notes to basic financial statements.
28
Business-type Equipment
Activity- Replacement
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
CURRENT ASSETS:
Cash and investments -$ 2,691,414$
Receivables:
Interest - 7,925
TOTAL CURRENT ASSETS - 2,699,339
NONCURRENT ASSETS:
Capital assets, not being depreciated:
Land - -
Construction in progress - -
Capital assets, being depreciated:
Property and equipment - 2,414,346
Infrastructure - -
Accumulated depreciation - (2,030,405)
TOTAL NONCURRENT ASSETS - 383,941
TOTAL ASSETS - 3,083,280
LIABILITIES:
Accounts payable and accrued liabilities - 12,018
Retentions payable - -
TOTAL LIABILITIES - 12,018
Invested in capital assets - 383,941
Unrestricted - 2,687,321
TOTAL NET POSITION -$ 3,071,262$
ASSETS
LIABILITIES
NET POSITION
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2019
See accompanying notes to basic financial statements.
29
Business-type Equipment
Activity Replacement
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
OPERATING REVENUES:
Charges for services -$ 300,900$
OPERATING EXPENSES:
Materials and supplies - 210,066
Maintenance 80,390 -
Depreciation 730,725 242,309
TOTAL OPERATING EXPENSES 811,115 452,375
OPERATING LOSS (811,115) (151,475)
NONOPERATING REVENUES:
Grant revenues 200,000 -
Investment income - 50,259
TOTAL NONOPERATING REVENUES 200,000 50,259
INCOME (LOSS) BEFORE TRANSFERS (611,115) (101,216)
TRANSFER OUT (34,257,672) -
CHANGE IN NET POSITION (34,868,787) (101,216)
TOTAL NET POSITION - BEGINNING OF YEAR 34,868,787 3,172,478
TOTAL NET POSITION - END OF YEAR -$ 3,071,262$
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION - PROPRIETARY FUNDS
For the year ended June 30, 2019
See accompanying notes to basic financial statements.
30
Business-type Equipment
Activity Replacement
Water Quality Internal
Flood Protection Service
Enterprise Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services provided -$ 300,900$
Payments to suppliers (97,917) (201,162)
NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES (97,917) 99,738
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (944,660) (5,035)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Receipts from other revenues 200,000 -
Transfer to other funds (189,352) -
NET CASH PROVIDED FROM NON-CAPITAL
FINANCING ACTIVITIES 10,648 -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments 2,520 47,402
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (1,029,409) 142,105
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 1,029,409 2,549,309
CASH AND CASH EQUIVALENTS - END OF YEAR -$ 2,691,414$
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss (811,115)$ (151,475)$
Adjustments to reconcile operating loss to net cash
used by operating activities:
Depreciation 730,725 242,309
Changes in operating assets and liabilities:
Decrease in accounts payable and accrued liabilities - 8,904
Decrease in retentions payable (17,527) -
NET PROVIDED BY (USED FOR) OPERATING
ACTIVITIES (97,917)$ 99,738$
SCHEDULE OF NON-CASH CAPITAL AND RELATED
FINANCING ACTIVITIES:
Contribution of capital assets to City's governmental activities 34,185,288$ -$
CITY OF RANCHO PALOS VERDES
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2019
See accompanying notes to basic financial statements.
31
Successor Agency
Private-Purpose
Trust Fund
Cash and investments 192,509$
Interest receivable 570
Prepaid costs 356,125
TOTAL ASSETS 549,204
LIABILITIES
CURRENT LIABILITIES:
Current portion of noncurrent liabilities 454,922
TOTAL CURRENT LIABILITIES 454,922
NONCURRENT LIABILITIES:
Due beyond one year 13,955,353
TOTAL NONCURRENT LIABILITIES 13,955,353
TOTAL LIABILITIES 14,410,275
NET POSITION (DEFICIT) HELD IN TRUST (13,861,071)$
ASSETS
STATEMENT OF FIDUCIARY NET POSITION
CITY OF RANCHO PALOS VERDES
FIDUCIARY FUND
June 30, 2019
See accompanying notes to basic financial statements.
32
Successor Agency
Private-Purpose
Trust Fund
ADDITIONS:
Taxes 625,797$
Use of money and property 6,296
TOTAL ADDITIONS 632,093
DEDUCTIONS:
Administration 226,839
Debt interest and fiscal charges 378,214
TOTAL DEDUCTIONS 605,053
CHANGE IN NET POSITION 27,040
NET POSITION (DEFICIT) - BEGINNING OF YEAR (13,888,111)
NET POSITION (DEFICIT) - END OF YEAR (13,861,071)$
CITY OF RANCHO PALOS VERDES
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the year ended June 30, 2019
See accompanying notes to basic financial statements.
33
34
(THIS PAGE INTENTIONALLY LEFT BLANK)
NOTES TO FINANCIAL STATEMENTS
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
35
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 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 City sponsored the formation of a Redevelopment Agency in 1984 pursuant to the State of California
Health and Safety Code Section 33000 entitled “Community Redevelopment Law” with a purpose to
finance long-term capital improvements designed to eliminate physical and economic blight in a project
area through stabilization of hazardous landslides. Effective February 1, 2012, pursuant to state law, the
Redevelopment Agency was dissolved and its assets were transferred to a Successor Agency for the
purpose of winding down the business of the former Redevelopment Agency (see Note 14). The Successor
Agency is a separate legal entity that is a related organization to the City; but is not a component unit, as
described more fully below.
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 former Redevelopment
Agency, and the County of Los Angeles (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 former Redevelopment Agency.
The City of Rancho Palos Verdes is the primary government unit. Component units are legally separate
organizations for which the elected officials of the primary government are financially accountable. In
addition, component units can be other organizations for which the nature and significance of their
relationship with the primary government are such that exclusion would cause the reporting entity’s
financial statements to be misleading. The City has accounted for the Authority as a “blended” component
unit. The balances and transactions of the Authority are reported in separate Permanent and Special
Revenue Funds; and are included in the government-wide statements.
The following specific criteria were used in determining that the Authority is a “blended” component unit.
The members of the City Council also act as members of the Authority Board.
The Authority is fiscally dependent on the City, and there is potential for the Authority to impose
specific financial burdens on the City; as the City subsidizes maintenance operations performed by
the Authority and the City is legally liable for facilities maintained by the Authority.
Separately issued financial statements for the Authority may be obtained at the City’s administrative
offices.
The Successor Agency does not meet the criteria for reporting as a component unit, as it is not fiscally
dependent on the City. In addition, the business of the Successor Agency must be approved by an
independently appointed Oversight Board and the California Department of Finance. Therefore, the
balances and transactions of the Successor Agency are reported as a separate Fiduciary Fund (private
purpose trust fund), and are not included in the government-wide statements.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
36
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. Reporting Entity (Continued)
Participation in Public Entity Jointly Controlled Government
The City is a member of the Palos Verdes Peninsula Transit Joint Powers Authority (the Transit Authority).
The Transit Authority is comprised of three 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 Position. 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
pvtransit@palosverdes.com or mailing a request to P.O. Box 2656, Palos Verdes Peninsula, CA 90274.
B. 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, deferred outflows/inflows, 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. The financial resources accounted for in the General Fund may be used to fund any
City program.
Special Revenue Funds - Used to account for the proceeds of specific revenue sources that are restricted
by law or administrative action for specified purposes.
Capital Projects Funds - Used to account for financial resources used for the construction of specific
capital projects.
Permanent Funds - 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 Fund - 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 centralize the accounting for purchases of equipment, furniture and
vehicles on behalf of all City departments, and the accumulation of funds for replacement of certain
buildings on behalf of the City.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
37
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Description of Funds (Continued)
Fiduciary Fund Type
Private-Purpose Trust Fund - Used to account for property tax revenue allocated to the Successor Agency
and payments of the obligations of the former Redevelopment Agency.
C. Basis of Accounting/Measurement Focus
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a “Statement of Net Position” and a
“Statement of Activities.” These two statements present summaries of Governmental and Business-type
Activities for the City; and do not include fiduciary activities. These statements are presented on an
“economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the
City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources; including
capital assets, infrastructure, and long-term debt, are included in the accompanying Statement of Net
Position. The Statement of Activities presents changes in net position. 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 among program revenues are reported
instead as general revenues. As a general rule, the effect of inter-fund activity has been eliminated from
the Government-Wide Financial Statements.
Governmental Fund Financial Statements
Governmental fund financial statements include a “Balance She et - 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 Position presented in the Government-Wide
Financial Statements.
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.
The State Grants Special Revenue Fund is used to account for state financial assistance programs.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
38
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting/Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
The Capital Improvement Capital Projects Fund is used to account for funds used for the City’s capital
improvement projects.
All governmental funds are accounted for on a spending or “current financial resources” measurement
focus and the modified accrual basis of accounting. Under the “current financial resources” measurement
focus, generally only current assets, current liabilities and deferred inflows are reported 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, 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 unearned revenues. Expenditures are recorded when the fund liability is incurred, if
measurable, except for interest on general long-term debt that has not yet matured, which is recognized
when due.
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 noncurrent) associated
with the activity are included on the balance sheet. Fund equity is presented as total net position. The
operating statement of proprietary funds presents increases (revenues) and decreases (expenses) in total
net position. 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 an internal service fund to finance and account for goods and services provided by one City
department to other City departments, including the purchase and maintenance of equipment. The City’s
internal service fund is 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 fund is consolidated into the governmental activities 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.).
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
39
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting/Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
The City reports the following major enterprise fund.
The Water Quality Flood Protection Fund is used to account for the voter approved storm drain user fees
used to repair and replace the City’s storm drain facilities. The remaining assets of this fund were
contributed the General Fund.
Fiduciary Fund Financial Statements
The fiduciary private-purpose trust fund type is accounted for using the economic resources measurement
focus and accrual basis of accounting similar to the proprietary funds.
The City reports the following fiduciary fund.
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency
as part of the business of redevelopment dissolution. The Successor Agency private-purpose trust fund
accounts for the changes in the former Redevelopment Agency’s assets and liabilities until they are
disposed of through dissolution. This fund also accounts for the administrative costs associated with
dissolution.
D. Budgetary Accounting
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America 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 level. Throughout the year, the City Council made several budgetary adjustments to the
General fund, Special Revenue funds, Capital Projects funds, and Permanent funds.
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, 2019, based on calculations by
City Management, the proceeds of taxes in the amount of $27.1 million did not exceed appropriation limit
of $30.1 million.
E. Capital Assets
Capital assets include land, construction in progress, building and improvements, vehicles, computer
equipment, furniture, fixtures and equipment, and infrastructure assets (street systems, storm drains, sewer
systems, etc.). Capital assets are defined by the City as all land and buildings, vehicles, computers and
equipment with an initial individual cost of more than $5,000; and improvements and infrastructure assets
with costs of more than $100,000. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated or annexed capital assets are recorded at acquisition value at the date
of donation or annexation.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
40
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Capital Assets (Continued)
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
F. Employee Compensated Absences
City employees may receive from 10 to 20 days of 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.
City employees accrue 96 hours of sick leave each year with a maximum accrual of 720 hours. However,
unused sick leave is never paid out to the employee upon separation; and therefore, the City does not
accrue a liability.
The General Fund will primarily be used to liquidate the liability for compensated absences in future
years. Any liability for compensated absences is only carried in the General Fund if there is unused/unpaid
leave outstanding following an employee’s separation.
G. Investments
Investments are reported at fair value which is the amount at which financial instruments could be
exchanged in a current transaction between willing parties. All fair values are determined by external
consultants. Investments are measured at fair value on a recurring basis. Recurring fair value
measurements are those that Governmental Accounting Standards Board (GASB) Statements require or
permit in the statement of net position at the end of each reporting period.
H. Cash and Investments
The Water Quality Flood Protection Enterprise Fund and the Internal Service Funds participate in the
pooling of City-wide cash and investments. Amounts from the pool are available to these funds on
demand. Therefore the cash and investments reported in these funds are considered to be cash and cash
equivalents for purpose of the statement of cash flows.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
41
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. 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. 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 9. The CJPIA is a public entity risk pool. The City records
amounts deposited with CJPIA as insurance expenditures in the General Fund.
J. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods 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 reported as
non-spendable. The City had a total of $997,005 of prepaid items as of June 30, 2019.
K. 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 affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
L. 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. When unrestricted resources (committed, assigned or unassigned) are available for use, it
is the City’s policy to use committed resources first, assigned resources second and finally unassigned
resources.
M. Deferred Inflows and Outflows
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period and will not be recognized as an
outflow of resources (expense/expenditure) until that time. The City has the following items that qualify
for reporting in this category:
Deferred outflows related to pensions equal to employer contributions made after the measurement
date of the net pension liability.
Deferred outflows related to pensions for the changes in proportion and differences between employer
contributions and the employer’s proportionate share of contributions. These amounts are amortized
over a closed period equal to the average of the expected remaining service lives of all employees
that are provided with pensions through the plans.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
42
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. Deferred Inflows and Outflows (Continued)
Deferred outflows related to pensions resulting from the net difference between projected and actual
earnings on investments of the pension plans fiduciary net position. These amounts are amortized
over five years.
Deferred outflows related to pensions for differences between actual and expected experiences. These
amounts are amortized over a closed period equal to the average of the expected remaining service
lives of all employees that are provided with pensions through the plans.
Deferred outflows from pensions resulting from changes in assumptions. These amounts are
amortized over a closed period equal to the average expected remaining service lives of all employees
that are provided with pensions through the plans.
In addition to liabilities, the statement of net position and the governmental funds balance sheet will
sometimes report a separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that applies to a future
period and will not be recognized as an inflow of resources (revenue) until that time. The City has the
following items that qualify for reporting in this category:
Deferred inflows from unavailable revenues, which are reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenues from one source: grants. These
amounts are deferred and recognized as an inflow of resources in the period that the amounts become
available.
Deferred inflows related to pensions for the changes in proportion and differences between employer
contributions and the employer’s proportionate share of contributions. These amounts are amortized
over a closed period equal to the average of the expected remaining service lives of all employees
that are provided with pensions through the plans.
Deferred inflows related to pensions for differences between actual and expected experiences. These
amounts are amortized over a closed period equal to the average of the expected remaining service
lives of all employees that are provided with pensions through the plans.
Deferred inflows from pensions resulting from changes in assumptions. These amounts are amortized
over a closed period equal to the average expected remaining service lives of all employees that are
provided with pensions through the plans.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
43
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. Current Accounting Pronouncements
GASB 83 - Certain Asset Retirement Obligations, effective for periods beginning after June 15, 2018.
This accounting pronouncement did not impact the City.
GASB 88 - Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements,
effective for periods beginning after June 15, 2018. This accounting pronouncement did not impact the
City.
O. Future Accounting Pronouncements
GASB has issued the following statements, which may impact the City’s financial reporting requirements
in the future:
GASB 84 - Fiduciary Activities, effective for periods beginning after December 15, 2018.
GASB 87 - Leases, effective for periods beginning after December 15, 2019.
GASB 89 - Accounting for Interest Cost Incurred before the End of a Construction Period, effective
for periods beginning after December 15, 2019.
GASB 90 - Majority Equity Interests - an amendment of GASB Statements No. 14 and No. 61,
effective for periods beginning after December 15, 2018.
GASB 91 - Conduit Debt Obligations, effective for periods beginning after December 15, 2020.
P. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the City’s California Public
Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’
fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this
purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
44
2. CASH AND INVESTMENTS
Cash and investments as of June 30, 2019, are classified in the accompanying financial statements as follows:
Government-Wide Fiduciary Fund
Statement of Statement of Fiduciary
Net Position Net Position Total
Total cash and investments 65,188,261$ 192,509$ 65,380,770$
Cash and investments as of June 30, 2019 consist of the following:
Petty Cash 5,000$
Deposits with Financial Institutions 5,139,975
Certificates of Deposit 17,450,000
Money Market Funds 1,227
U.S. Treasury Obligations 6,000,000
Negotiable Certificates of Deposit 4,165,130
Local Agency Investment Fund (LAIF) 32,619,438
65,380,770$
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, and concentration of credit risk.
Maximum
Amount or
Maximum Percent of Maximum
Authorized Investment Type Maturity Portfolio in One Issuer
U.S. Treasury Obligations 3 years None None
Certificates of Deposit 5 years None None
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 7 days 15% None
Money Market Mutual Funds N/A 15% None
Local Agency Investment Fund (LAIF) N/A None $65 million per acct.
Money Market Savings/Demand Deposits N/A 15% $5 million
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
45
2. CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect fair value of an
investment. Generally, the longer the maturity of an investment, there is a greater sensitivity of its fair value
to changes in market interest rates. The City manages its exposure to interest rate risk by investing with the
Local Agency Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity need for
operations. The City’s investment is represented by shares in the pool, which can be withdrawn in one business
day. The average maturity of the pool is less than one year.
Remaining
Maturity
Investment Type 0-6 months 6-12 months 12-36 months 36-60 months Total
Certificates of Deposit 4,500,000$ 1,450,000$ 9,000,000$ 2,500,000$ 17,450,000$
Money Market Funds 1,227 - - - 1,227
U.S. Treasury Obligations 3,000,000 - 3,000,000 - 6,000,000
Negotiable Certificates of Deposit - 4,165,130 - - 4,165,130
Local Agency Investment Fund (LAIF) 32,619,438 - - - 32,619,438
Total 40,120,665$ 5,615,130$ 12,000,000$ 2,500,000$ 60,235,795$
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 certificates of deposit, negotiable certificates of deposit, and LAIF are not rated. The money
market funds are rated AAA.
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.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
46
2. CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk (Continued)
The City’s deposits with financial institutions in excess of federal depository insurance limits were held in
collateralized accounts, but not in the name of the City. The financial institutions that held the uninsured
deposits are legally required by the California Government Code to collateralize the City’s deposits as noted
above.
Investment in Local Agency Investment Fund (LAIF)
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 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.
Fair Value Classifications
The City categorized its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value
of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted
prices for similar assets in active markets, Level 3 inputs are significant unobservable inputs.
The fair value of the City’s investments in negotiable certificates of deposits is based on Level 2 inputs. The
City’s investments in FDIC insured certificates of deposits, money market funds and LAIF are not subject to
the fair value hierarchy.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
47
3. INTERFUND TRANSACTIONS
Interfund Receivable/Payable
lnterfund transfers for the year ended June 30, 2019, consisted of the following:
State Grants Other Water
General Special Governmental Quality Flood
Fund Revenue Fund Funds Protection Totals
General Fund -$ -$ 220,000$ 72,384$ 292,384$
Capital Improvement Projects 4,301,852 - 1,087,318 - 5,389,170
Other Governmental Funds 45,000 300,000 - - 345,000
Subtotal 4,346,852 300,000 1,307,318 72,384 6,026,554
Close of Water Quality Flood Protection
Enterprise Fund - - - 34,185,288 34,185,288
Total 4,346,852$ 300,000$ 1,307,318$ 34,257,672$ 40,211,842$
Transfer From
Transfer To
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; (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; (3) return money that was originally transferred from the General Fund to
another fund, yet not used; and (4) close out of the Water Quality Flood Protection Fund and transfer remaining
assets to the Governmental Funds.
The General Fund transferred a total of $4,346,852. Of this amount, $4,301,852 was transferred to the Capital
Improvement Projects (CIP) Fund as a CIP Reserve for future infrastructure projects, as required by the City
Council’s Reserve Policy. The amount of $25,000 was transferred to the Improvement Authority Abalone
Cove and $20,000 to the Improvement Authority Portuguese Bend. The State Grants Special Revenue Fund
transferred $300,000 to Other Governmental Funds (Proposition A Special Revenue Fund) for costs related to
the Lower Hesse Park Grant. The General Fund received $220,000 during the year from Other Governmental
Funds. Of this amount, $130,000 was transferred from the Public Safety Grants Fund to supplement the special
community resource policing team for the deputy cost within the Sherriff program of the public safety section
of the budget and $90,000 was transferred from the Measure A Maintenance Fund to fund Parks, Trails, and
Open Space Maintenance within the General Fund for fuel modification in the Open Space areas. The General
Fund received $72,384 during the year from the Water Quality Flood Projection Enterprise fund as the voter
approved user fees sunset in FY 15-16 and the remaining balance of the fund were spent by FY 18-19. The
Capital Improvement Projects (CIP) Fund received $1,087,318 during the year from the Other Governmental
Funds (Federal Grants Fund) to reimburse for project costs.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
48
4. CAPITAL ASSETS AND DEPRECIATION
The City has reported all capital assets including infrastructure in the Government-Wide Statement of Net
Position. The City elected to use the basic reporting approach as defined by GASB Statement No. 34 for all
infrastructures, whereby depreciation expense and accumulated depreciation has been recorded. The
following tables present the capital assets activity for the year ended June 30, 2019.
Contribution
from
Beginning Business-Type Ending
Balance Increases Decreases Activities Balance
Governmental Activities
Capital assets not being depreciated:
Land 42,087,575$ -$ -$ 1,428,243$ 43,515,818$
Construction in progress 1,646,826 5,449,496 (6,299,976) 2,334,284 3,130,630
Total capital assets not
being depreciated 43,734,401 5,449,496 (6,299,976) 3,762,527 46,646,448
Capital assets being depreciated:
Building and improvements 13,547,209 733,989 - - 14,281,198
Vehicles 511,560 - - - 511,560
Computer equipment 989,151 - - - 989,151
Equipment - water quality - - - 11,813 11,813
Furniture, fixtures and equipment 908,600 5,035 - - 913,635
Infrastructure
Roadway system 116,904,719 4,737,569 - - 121,642,288
Sewer system 25,965,995 - - - 25,965,995
Storm drain system 13,660,322 - - - 13,660,322
Storm drain system - water quality - - - 34,512,356 34,512,356
Parks system 6,734,479 875,378 - - 7,609,857
Total capital assets
being depreciated 179,222,035 6,351,971 - 34,524,169 220,098,175
Less accumulated depreciation for:
Buildings and improvements (6,803,849) (284,172) - - (7,088,021)
Vehicles (366,162) (40,975) - - (407,137)
Computer equipment (806,825) (91,185) - - (898,010)
Equipment - water quality - - - (11,813) (11,813)
Furniture, fixtures and equipment (609,759) (115,499) - - (725,258)
Infrastructure
Roadway system (61,509,573) (4,001,656) - - (65,511,229)
Sewer system (20,574,456) (453,674) - - (21,028,130)
Storm drain system (4,721,283) (267,524) - - (4,988,807)
Storm drain system - water quality - - - (4,089,595) (4,089,595)
Parks system (2,144,115) (295,674) - - (2,439,789)
Total accumulated depreciation (97,536,022) (5,550,359) - (4,101,408) (107,187,789)
Total capital assets
being depreciated, net 81,686,013 801,612 - 30,422,761 112,910,386
Governmental activities
capital assets, net 125,420,414$ 6,251,108$ (6,299,976)$ 34,185,288$ 159,556,834$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
49
4. CAPITAL ASSETS AND DEPRECIATION (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
Administration (depreciation of buildings and some furniture)289,522$
Public Works (depreciation of roadways, sewers, and storm drains)4,722,854
Parks and recreation (depreciation of parks system)295,674
Capital assets held by the City's internal service funds are charged
to various functions based on their usage of the assets 242,309
Total Depreciation Expense - Governmental Activities 5,550,359$
Transfer to
Beginning Governmental Ending
Balance Increases Decreases Activities Balance
Business-type Activities
Capital assets not being depreciated:
Land 1,428,243$ -$ -$ (1,428,243)$ -$
Construction in progress 4,432,416 - (2,098,132) (2,334,284) -
Total capital assets not
being depreciated 5,860,659 - (2,098,132) (3,762,527) -
Capital assets being depreciated:
Equipment 11,813 - - (11,813) -
Storm drain system 32,494,609 2,017,747 - (34,512,356) -
Total capital assets
being depreciated 32,506,422 2,017,747 - (34,524,169) -
Less accumulated depreciation for:
Equipment (11,813) - - 11,813 -
Storm drain system (3,358,870) (730,725) - 4,089,595 -
Total accumulated depreciation (3,370,683) (730,725) - 4,101,408 -
Total capital assets
being depreciated, net 29,135,739 1,287,022 - (30,422,761) -
Business-type activities
capital assets, net 34,996,398$ 1,287,022$ (2,098,132)$ (34,185,288)$ -$
Depreciation expense of $730,725 is included in the Water Quality Flood Protection enterprise fund.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
50
5. NOTES RECEIVABLE
Notes
Receivable
Affordable Housing 7,967,488$
Community Development Block Grant 346,466
Subtotal 8,313,954
Receivable from Successor Agency 10,620,275
Allowance from Successor Agency receivable (10,620,275)
Total Notes Receivable 8,313,954$
The receivable from the Successor Agency is discussed further in Note 14.
Affordable Housing
In March 2009, the former Redevelopment Agency (RDA) entered into a Disposition and Development
Agreement (DDA) with AMCAL Mirandela Fund LP (AMCAL). Under the DDA, the former RDA provided
financial assistance to AMCAL in an amount up to $6,790,000 to develop a thirty-four unit senior housing
project. The loan accrues simple interest at a rate of 3% per annum on the amounts disbursed. The note is due
December 22, 2065. The balance of note receivable from AMCAL including accrued unpaid interest of
$1,696,944 at June 30, 2019 was $7,967,488.
In March 2011, the former RDA sold an affordable housing condominium to an individual for $350,000. In
connection with the sale, the buyer issued a secured promissory note in the amount of $126,320. The note
bears no interest and principal is payable upon default by the owner (or any successors’ owner) under a
regulatory agreement that requires the condominium to be occupied by person or families of moderate income.
If no such default has occurred by February 22, 2056, the principal will be forgiven. Due to the nature of this
loan, the outstanding balance has been offset in full by an allowance for uncollectability.
As part of redevelopment dissolution, these two long-term notes receivable were transferred to the housing
successor (the City), which elected to retain the housing assets and function of the former Redevelopment
Agency.
Community Development Block Grant (CDBG)
As part of the City’s CDBG program, the City extends loans to property owners meeting low and moderate
income requirements to make repairs and improvements to their homes. These notes receivable bear no
interest, and repayment is required when the title to the property is transferred or the property is re-financed.
The maximum loan amount per property is $13,000. Amounts repaid are returned to the CDBG program. The
total of these loans outstanding at June 30, 2019 is $346,466.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
51
6. LONG-TERM LIABILITIES
Balance Balance Amount Due
July 1, 2018 Additions Deletions June 30, 2019 in One Year
Employee Compensated Absences 424,249$ 322,869$ (346,614)$ 400,504$ 327,215$
Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences. Based on historical trends, $327,215
is estimated to be the amount that will be used and/or paid out during the fiscal year ended June 30, 2019.
7. CLASSIFICATIONS OF NET POSITION AND FUND BALANCE
Government-Wide Financial Statements
In the Government-Wide financial statements net position is classified in the following categories:
Net Investment in Capital Assets
This category groups all capital assets, including infrastructure, into one component of net position.
Accumulated depreciation on these assets reduces this category as does any outstanding balance on debt
incurred in acquiring or constructing the capital assets.
Restricted Net Position
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 Position
This category represents the difference between total net position and the two categories noted above: Net
Investment in Capital Assets and Restricted Net Position.
Fund Financial Statements
The fund balances reported on the fund statements consist of the following categories:
Non-spendable - Amounts that are not in a spendable form (such as inventory and prepaid expenditures) or
are legally required to be maintained intact (such as the corpus of an endowment fund).
Restricted - Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and
higher levels of government), through constitutional provisions, or by enabling legislation.
Committed - Amounts constrained to specific purposes by the City Council via a City Council resolution or
ordinance, which are considered to be equally binding. To be reported as committed, amounts cannot be used
for any other purpose unless the City Council adopts another resolution to remove or change the constraint.
Assigned - Amounts the City Council intends to use for a specific purpose, which is expressed by the City
Council via minute order.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
52
7. CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED)
Fund Financial Statements (Continued)
Unassigned - Amounts that are available for any purpose; these amounts are reported only in the General
Fund. However, if there is a deficit fund balance to be reported in any fund, it is classified as unassigned.
The City’s governmental fund balances were classified as follows at June 30, 2019:
State Grants Capital Other
General Special Revenue Improvement Governmental
Fund Fund Fund Funds
Nonspendable:
In Form (inventory and prepaid) 1,016,459$ -$ -$ -$
Legally - - - 1,750,000
Habitat Restoration - - - 152,180
Restricted:
Public Works - - 1,917,100 12,351,064
Committed:
Public Works 179,041 - - -
City Administration 39,600 - - -
Community Development 103,623 - - -
Recreation and Parks 19,168 - - -
Assigned:
Public Works - - 23,720,033 -
Continued Appropriations - - 1,380,058 -
Unassigned:
Unrestricted Fund Balance 19,130,656 (563,741) - -
Continued Appropriations 300,000 - - -
Governmental Fund Balance Totals 20,788,547$ (563,741)$ 27,017,191$ 14,253,244$
Non-Spendable Fund Balance
General Fund assets include $19,454 of inventory held for resale at the Point Vicente Interpretive Center gift
shop, and $997,005 of prepayments for expenditures related to the fiscal year ended June 30, 2020.
The fund balance of the Improvement Authority’s Abalone Cove Fund includes a $1,000,000 non-spendable
fund balance, as required by a Reimbursement and Settlement Agreement dated October 27, 1987 in
connection with the Horan Lawsuit (discussed further in Note 14).
The fund balance of the Subregion One Maintenance Fund includes a $750,000 non-spendable endowment,
as required by the developer agreement for the Subregion One tract.
Beginning with the fiscal year ended June 30, 2006, the City’s Natural Communities Conservation Plan
requires an endowment in the Habitat Restoration Fund to be funded at the rate of $10,000 annually (plus
interest) for fifty (50) years, to provide for maintenance of habitat in the future. The balance of $152,180
represents 12 years of annual $10,000 contributions plus interest earnings.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
53
7. CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED)
Restricted Fund Balance
The balances of the City’s Special Revenue Funds, including California Highway User Tax apportionments
in the Gas Tax Fund, are constrained to use for specific purposes by other governmental agencies.
The $1,917,100 balance of the Capital Improvement Fund is restricted for ongoing improvements for streets,
building, parks, trails and open space, and Portuguese Bend’s dewatering wells project.
Balances totaling $1,029,197 within the Low-Moderate Income Housing Fund and the Affordable Housing
In-Lieu Fund have been assigned for the provision of affordable housing within the City.
Committed Fund Balance
The $341,432 balance of the General Fund is committed for ongoing projects approved by the City Council.
These projects can only be redesignated to other projects by City Council.
Assigned Fund Balance
The $25,100,091 balance of the Capital Improvement Projects Fund has been assigned for the planning, design
and construction of infrastructure projects.
Unassigned Fund Balance
City Council Policy No. 41 - Reserve Policies, adopted via resolution, requires the City to maintain a minimum
General Fund balance of at least fifty percent of annual operating expenditures. This reserve serves as a Rainy
Day Fund with a balance of $19,130,656 at June 30, 2019.
City Council approved to carry forward $300,000 of FY 2018-19 General Fund appropriations to FY 2019-20.
Statement of Net Position
The Net Position of the City’s governmental activities at June 30, 2019 includes restricted amounts totaling
$16,170,344. The restrictions are itemized in the following table, and are noted above, in the discussion of
governmental fund balances.
Improvement Authority non-spendable balance 1,000,000$
Subregion One maintenance non-spendable endowment 750,000
Natural Communities Conservation Plan non-spendable endowment 15 2,180
Capital Improvement Fund 1,917,100
Other Governmental Funds restricted balances 12,351,064
Total Restricted portion of Net Position 16,170,344$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
54
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS
Pension Plan Description
All qualified permanent and probationary employees are eligible to participate in the City of Rancho
Palos Verdes Employee Pension Plan, a cost-sharing multiple-employer defined benefit pension plan
administered by the California Public Employees Retirement System (CalPERS). The CalPERS Plan consists
of a miscellaneous pool and a safety pool (referred to as “risk pools”), which are comprised of individual
employer miscellaneous and safety rate plans, respectively. The risk pools are included within the Public
Employees’ Retirement Fund C (PERF C). Benefit provisions under the Plan are established by State statute
and may be amended by City resolution. CalPERS issues publicly available reports that include a full
description of the pension plans regarding benefit provision, assumption and membership information that
can be found on the CALPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full time employment. Members with five years of total service are
eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability
benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957
Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan
are applied as specified by the Public Employees’ Retirement Law.
The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member
contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA
members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS
Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations.
The Plan’s provisions and benefits in effect at the June 30, 2018 measurement date, are summarized in the
following table.
Classic Tier 1 Classic Tier 2 New Members
Prior to Prior to On or after
Hire Date January 1, 2013 October 2, 2012 January 1, 2013
Formula 2.5% at 55 2.0% at 60 2.0% at 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 55 60 62
Monthly benefits, as a % of annual salary 2.50%2.00%2.00%
Required employee contribution rates 8%7%6.25%
Required employer contributions rates:
Normal cost rate 10.110%7.200%6.533%
Payment of unfunded liability 495,784$ 198$ 526$
Miscellaneous
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
55
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 1 following notice of a change in the rate. The total plan contributions are determined
through CALPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated
amount necessary to finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability. The City is required to contribute the difference between
the actuarially determined rate and the contribution rate of employees. City contribution rates may change if
plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are
identified by the pension plan terms as plan member contributions requirements are classified as plan member
contributions.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
The City reported a net pension liability for its proportionate share of the net pension liability of the
Miscellaneous Plan as of June 30, 2019, in the amount of $10,921,840.
The City’s net pension liability for the Miscellaneous Plan is measured as the proportionate share of the net
pension liability of the CALPERS cost sharing pool. The City’s net pension liability of the Plan is measured
as of June 30, 2018, and the total pension liability for the Miscellaneous Plan used to calculate the net pension
liability was determined by an actuarial valuation as of June 30, 2017, rolled forward to June 30, 2018, using
standard update procedures. The City’s proportion of the net pension liability was based on a projection of the
City’s long-term share of contributions to the pension plans relative to the projected contributions of all
participating employers, actuarially determined.
The City’s proportionate share of the net pension liability for the Miscellaneous Plan as of the June 30, 2017
and 2018 measurement dates was as follows:
Proportion - June 30, 2017 0.11218%
Proportion - June 30, 2018 0.11334%
Change - Increase ( Decrease)-0.00116%
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
56
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
For the year ended June 30, 2019, the City recognized pension expense of $564,632. At June 30, 2019, the
City reported deferred outflows of resources and deferred inflows of resources related to pension from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
City contributions subsequent to the measurement date 1,153,245$ -$
Changes in proportion and differences between employer
contributions and employer's proportionate share of contributions - (286,352)
Net difference between projected and actual earnings on pension
plan investments 53,995 -
Differences between expected and actual experience 419,052 (142,600)
Change of assumptions 1,245,122 (305,155)
Total 2,871,414$ (734,107)$
The amount of $1,153,245 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows or resources
related to pensions will be recognized as pension expense as follows:
Year Ended June 30,
2020 966,586$
2021 520,927
2022 (405,214)
2023 (98,237)
984,062$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
57
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
Actuarial Assumptions
The total pension liability for the June 30, 2018 measurement period was determined by an actuarial valuation
as of June 30, 2017, with update procedures used to roll forward the total pension liability to June 30, 2018.
The total pension liability was based on the following assumptions:
Valuation Date June 30, 2017
Measurement Date June 30, 2018
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Salary Increases (1)
Mortality Rate Table (2)
Post Retirement Benefit Increase (3)
(1) Varies by entry age and service
(2)
(3)
The mortality table used was developed based on CalPERS-specific data. The table includes 15
years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more
details on this table, please refer to the December 2017 experience study report (based on CalPERS
demographic data from 1997 to 2015) available on the CalPERS website.
Contract COLA up to 2.00% until Purchasing Power Protection Allowance Floor on Purchasing
Power applies, 2.50% thereafter.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment expense
and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical returns
of all the funds’ asset classes expected compound (geometric) returns were calculated over the short-term
(first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal
returns for both short-term and long-term, the present value of benefits was calculated for each fund. The
expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the
same present value of benefits for cash flows as the one calculated using both short-term and long-term
returns. The expected rate of return was then set equal to the single equivalent rate calculated above and
adjusted to account for assumed administrative expenses.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
58
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
The expected real rates of return by asset class are as follows:
(a) Real (b) Rate
Target Return Return
Allocation Years 1-10 Years 11+
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 262.00%
Inflation Sensitive 0.00% 77.00% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(b) An expected inflation of 2.0% used for this period.
(c) An expected inflation of 2.92% used for this period.
Asset Class
(a) In the CalPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in
Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt
Securities.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current
members will be made at the current member contribution rates and that contributions from employers will
be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary
net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability for each Plan, calculated
using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point
higher than the current rate:
Discount Rate -1%Current Discount Rate Discount Rate +1%
(6.15%)(7.15%)(8.15%)
16,785,315$ 10,921,840$ 6,081,638$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
59
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in a separately issued CalPERS
financial report.
Payable to the Pension Plan
At June 30, 2019, the City had no outstanding amount of contributions to the pension plan required for the
year ended June 30, 2019.
Retirement Health Savings Plan
On November 17, 2009, the City approved the establishment of a defined contribution Retirement Health
Savings Plan (the “Plan”) for its full-time employees. The Plan is a Health Reimbursement Arrangement
(“HRA”) within Sections 105 and 106 of the Internal Revenue Code. The Plan assets are managed in a
non-taxable trust as described in Section 501 (c)(9) of the Internal Revenue Code. The City is the Plan
Administrator, and utilizes the services of a contracted financial services provider for day-to-day
administration of contributions and disbursements. The City has the authority to amend the Plan’s provisions
and contribution requirements.
The City has no obligation to make contributions to the Plan, but as part of the annual budget process the City
may elect to make contributions to the Plan. Employees are required to contribute 1% of their gross wages to
their account, which is owned by the employee. During the fiscal year ended June 30, 2019, the City
contributed a total of $77,759 to employee accounts.
The Plan assets are not an asset of the City. Therefore, only the City’s expense to make contributions to the
Plan has been recorded in the General Fund in the City’s financial statements.
9. LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Rancho Palos Verdes is a member of the CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (Authority). The Authority is composed of 116 California public entities and is organized under
a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority
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 lines of coverage. The
California JPIA 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 nine-member Executive
Committee.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
60
9. LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE (CONTINUED)
Self-Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment
is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and
forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary
self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on
payroll and claims history, relative to other members of the risk-sharing pool. Additional information
regarding the cost allocation methodology is provided below.
General Liability
In the liability program claims are pooled separately between police and general government exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility
factor is determined for each member, which establishes the weight applied to payroll and the weight applied
to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The
second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated
as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to
$50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2018-19 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to $20 million,
and excess insurance to $50 million. The Authority’s reinsurance contracts are subject to the following
additional pooled retentions: (a) $2.5 million annual aggregate deductible in the $3 million excess of
$2 million layer, (b) $3 million excess of $2 million layer, and (c) $2.5 million annual aggregate deductible in
the $5 million excess of $5 million layer.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.
Costs of covered claims for subsidence losses have a sub-limit of $40 million per occurrence.
Workers’ Compensation
In the workers’ compensation program claims are pooled separately between public safety (police and fire)
and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of
other members. A variable credibility factor is determined for each member, which establishes the weight
applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes
incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred
costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000
for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer.
(4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation
within the first and second loss layers.
For 2018-19, the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits
under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million
is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million
are pooled among members.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
61
9. LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE (CONTINUED)
Purchased Insurance
Pollution Legal Liability Insurance
The City of Rancho Palos Verdes participates in the pollution legal liability insurance program which is
available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets,
and storm drains owned by the City of Rancho Palos Verdes. Coverage is on a claims-made basis. There is a
$50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2017 through
July 1, 2020. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy.
Property Insurance
The City of Rancho Palos Verdes participates in the all-risk property protection program of the Authority. This
insurance protection is underwritten by several insurance companies. City of Rancho Palos Verdes property
is currently insured according to a schedule of covered property submitted by the City of Rancho Palos Verdes
to the Authority. City of Rancho Palos Verdes property currently has all-risk property insurance protection in
the amount of $16,436,542. There is a $10,000 deductible per occurrence except for non-emergency vehicle
insurance which has a $2,500 deductible. Premiums for the coverage are paid annually and are not subject to
retrospective adjustments.
Earthquake and Flood Insurance
The City of Rancho Palos Verdes purchases earthquake and flood insurance on a portion of its property. The
earthquake insurance is part of the property protection insurance program of the Authority. City of Rancho
Palos Verdes property currently has earthquake protection in the amount of $16,148,596. There is a deductible
of 5% per unit of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually
and are not subject to retrospective adjustments.
Crime Insurance
The City of Rancho Palos Verdes purchases crime insurance coverage in the amount of $1,000,000 with a
$2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and
are not subject to retrospective adjustments.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or
judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or
insured liability coverage in 2018-19.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
62
10. CONTINGENCIES AND COMMITMENTS
Litigation
In the normal course of operations, the City has been named as a defendant in various claims and legal actions.
Generally, unfavorable results of these claims and legal actions are funded through the City’s participation in
California Joint Powers Insurance Authority (CJPIA, see Note 9) and, as such, the City believes that the
ultimate liability for these legal actions and claims will not have a material adverse effect on the City’s
financial statements. The City is also a defendant in legal actions for which the potential losses would not be
covered through participation in CJPIA.
11. PROPERTY TAXES
Under California law, property taxes are assessed and collected by the counties up to one percent of assessed
value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated
to the cities based on complex formulas. Accordingly, the City accrues only those taxes, which are received
from the county within sixty days after year-end.
Lien date January 1
Levy date June 30
Due date November 1 and February 1
Collection dates December 10 and April 10
12. UNAVAILABLE REVENUES
The unavailable revenues in the fund financial statements of the City of Rancho Palos Verdes as of
June 30, 2019 are presented in the following table.
Revenue Measurable but Not Available (beyond 60 days):
General Fund 234,283$
State Grants Special Revenue Fund 300,000
Other Governmental Funds 63,086
Total Unavailable Revenues 597,369$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
63
13. OTHER REQUIRED FUND DISCLOSURES
The following department’s budget had expenditures in excess of the budget for the year ended June 30, 2019,
as follows:
Program Budget Expenditures Excess
General Fund:
Non-departmental 1,110,646$ 1,133,906$ 23,260
Measure M Special Revenue Fund:
Public works 536,000 565,971 29,971
Dr. Allen and Charlotte Ginsburg Cultural Arts
Building Special Revenue Fund:
Non-departmental - 86,344 86,344
The State Grants Special Revenue Fund has a deficit fund balance of $563,741 at June 30, 2019. This deficit
will be eliminated by recognition of revenue not available as of year-end and through transfers from other
funds. The Successor Agency Private-Purpose Trust Fund has a deficit fiduciary net position at June 30, 2019
of $13,912,703 which will be reduced by collection of future tax revenues.
14. SUCCESSOR AGENCY
Under the Dissolution Act, each California redevelopment agency (each a “Dissolved RDA”) was dissolved
as of February 1, 2012. A Successor Agency was created for each Dissolved RDA which is the sponsoring
community of the Dissolved RDA unless it elected not to serve as the Successor Agency. On September 6,
2011, the City elected to serve as the Successor Agency of the Rancho Palos Verdes Redevelopment Agency.
Non-Liquid Assets
Prior to redevelopment dissolution, the County of Los Angeles pursuant to a Memorandum of Understanding
dated November 1, 1997 (discussed below) impounded property tax increment allocated to the former
redevelopment agency for payment of debt owed to the County. The balance of the impounded tax increment
not yet applied to debt at June 30, 2019 is $356,125.
Debt Summary
Balance Balance Amounts Due
July 1, 2018 Additions Deletions June 30, 2019 in One Year
Due to City:
Portuguese Bend 7,139,869$ 116,700$ (111,950)$ 7,144,619$ 117,648$
Abalone Cove 3,472,988 65,640 (62,972) 3,475,656 57,274
Due to County:
Tax Increment Bond 4,045,000 - (255,000) 3,790,000 280,000
Totals 14,657,857$ 182,340$ (429,922)$ 14,410,275$ 454,922$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
64
14. SUCCESSOR AGENCY (CONTINUED)
Consolidated Loan from City
The City entered into an agreement to provide the former Redevelopment Agency (RDA) operating funds and
staff assistance, supplies, technical and other services and facilities of the City as the RDA required in carrying
out its function under the community redevelopment law. The former RDA was to repay the resulting
indebtedness, plus interest, from incremental property tax revenues arising from the project area, as such
revenue became available. Pursuant to redevelopment dissolution law, loans from cities to redevelopment
agencies made more than two years after formation of the redevelopment agency are not recognized
obligations. Therefore, the Consolidated Loan from the City has been previously disallowed on the Successor
Agency’s Recognized Obligation Payment Schedule (ROPS). However, AB1484 provides a method to secure
recognition of the City’s Consolidated Loan as an obligation of the Successor Agency. Upon completion of
various independent reviews and transfers of funds to Los Angeles County, the Successor Agency received a
“Finding of Completion” on April 26, 2013. On December 11, 2013, the Oversight Board made a finding that
the Consolidated Loan from the City was made for legitimate redevelopment purposes. As required by
dissolution law, twenty percent of the amount available will be deposited into the City’s Low-Moderate
Income Housing Fund.
On September 22, 2015, Governor Brown signed legislation that became effective immediately. The
legislation requires accrued interest on city loans to be recalculated using a simple interest rate of 3%.
Previously, accrued interest on the City’s loan was calculated using historical Local Agency Investment Fund
(LAIF) rates. At June 30, 2019, using the simple interest rate of 3%, the loan balance is $10,620,275.
Principal Interest Balance
Portuguese Bend 3,921,822$ 3,255,840$ 7,177,662$
Abalone Cove 2,205,897 1,288,348 3,494,245
Allowance from Successor Agency Receivable (6,127,719) (4,544,188) (10,671,907)
Totals -$ -$ -$
Due to the uncertainty of Redevelopment Property Tax Trust Fund revenue available for future loan
repayments, the City’s loan receivable of $10,671,907 has been completely offset with an allowance for
uncollectable amounts on the City’s financial statements.
Tax Increment Bond and Deferred Interest Payable
In July 1991, the former Redevelopment Agency 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
former Redevelopment Agency in the amount of $787,340.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
65
14. SUCCESSOR AGENCY (CONTINUED)
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
former Redevelopment Agency’s Abalone Cove Fund. Concurrent with the execution of the Agreement, the
County deeded its title in the Abalone Cove Beach Park to the former Redevelopment Agency.
As part of the Agreement, the former Redevelopment Agency was 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 former Redevelopment
Agency 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.
On November 1, 1997, the City, the former Redevelopment Agency 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 former Redevelopment Agency. 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
former Redevelopment Agency 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 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 bond was issued as a conduit through the Improvement Authority to the County. No issuance costs were
incurred. Future allocations of property tax to the Successor Agency will fund the payment of the bond debt
and the deferred interest from the original Loan until paid in full. The principal of the 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 $3,111,400. In
accordance with the MOU, the recalculated deferred interest does not accrue additional interest. As of June 30,
2014, the balance of the deferred interest debt has been completely repaid.
The California Department of Finance has approved the Tax Increment Bond and Deferred Interest Payable
as obligations of the Successor Agency.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2019
66
14. SUCCESSOR AGENCY (CONTINUED)
Tax Increment Bond and Deferred Interest Payable (Continued)
The debt service schedule below summarizes all fixed principal and interest payments for the term of the
bond. Because the payback period for the deferred interest amount will fluctuate depending on the availability
of excess property tax revenue, no amounts have been included in the following schedule for repayment of
the deferred interest.
Year Ending June 30, Principal Interest Total
2020 280,000$ 182,500$ 462,500$
2021 310,000 167,750 477,750
2022 345,000 151,375 496,375
2023 380,000 133,250 513,250
2024 415,000 113,375 528,375
2025 - 2028 2,060,000 216,750 2,276,750
Totals 3,790,000$ 965,000$ 4,755,000$
15. SUBSEQUENT EVENTS
Events occurring after June 30, 2019, have been evaluated for possible adjustments to the financial statements
or disclosure as of December 27, 2019, which is the date these financial statements were available to be issued.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Schedule of Proportionate Share of the Net Pension Liability
Last Ten Years*
As of the Fiscal Year Ended June 30, 2019
67
Fiscal year ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Measurement period June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
Plan's proportion of the net pension liability 0.28980% 0.21800% 0.11120% 0.11130% 0.09183%
Plan's proportionate share of the net pension liability 10,921,840$ 11,124,689$ 9,625,397$ 7,637,567$ 5,714,320$
Plan's covered - payroll 6,697,322$ 6,360,881$ 6,124,374$ 5,673,471$ 5,609,006$
Plan's proportionate share of the net pension liability as
a percentage of covered - payroll 163.08% 174.89% 157.17% 134.62% 101.88%
Plan's proportionate share of the fiduciary net position as 75.26% 73.31% 74.06% 78.40% 76.48%
a percentage of the Plan's total pension liability
Plan's proportionate share of aggregate
employer contributions 1,235,073$ 1,096,042$ 998,812$ 919,858$ n/a
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%.
From fiscal year June 30, 2018 to June 30, 2019:
There were no changes in assumptions.
*Fiscal year 2015 was the 1st year of implementation, therefore only five years are shown.
GASB 68, paragraph 68 states that the long-term expected rate of return should be
determined net of pension plan investment expense but without reduction for pension
plan administrative expense. The discount rate of 7.50% used for the June 30, 2014
measurement date was net of administrative expenses. The discount rate of 7.65%
used for the June 30, 2015 measurement date is without reduction of pension plan
administrative expense.
Miscellaneous
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Schedule of Pension Contributions
Last Ten Years*
As of the Fiscal Year Ended June 30, 2019
68
Fiscal year ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Contractually required contribution (actuarially determined)1,153,245$ 990,670$ 910,177$ 830,645$ 725,496$
Contributions in relation to the actuarially
determined contributions (1,153,245) (990,670) (910,177) (830,645) (725,496)
Contribution deficiency (excess)-$ -$ -$ -$ -$
Covered - payroll 6,697,322$ 6,360,881$ 6,124,374$ 5,997,450$ 5,673,471$
Contributions as a percentage of covered - payroll 17.22% 15.57% 14.86% 13.85% 12.79%
Notes to Schedule:
Valuation Date 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method Entry age Entry age Entry age Entry age Entry age
Amortization method (1) (1) (1) (1) (1)
Asset valuation method Market Value Market Value Market Value Market Value 15 Year
Smoothed
Market Method
Inflation
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)
Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation
(4) 55 for Tier 1, 60 for Classic Tier 2, and 62 for PEPRA members
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study
adopted by the CalPERS Board.
* Fiscal year 2015 was the 1st year of implementation, therefore only five years are shown.
SUPPLEMENTARY INFORMATION
69
Special Revenue 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.
Gas Tax Fund - to account for state-shared highway users’ tax that is restricted to use for street maintenance,
right-of-way acquisition and street construction.
1972 Act Landscaping and Lighting District (1972 Act) - to account for revenues and costs associated with the
City’s landscaping and lighting district.
El Prado - to account for taxes collected to maintain and service existing and proposed improvements to the
common area of the El Prado neighborhood.
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.
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
program.
Air Quality Management - to account for AB2766 fees received to fund programs to reduce air pollution from
motor vehicles.
Proposition C - to account for sales taxes received from the County and used to support public transit and related
services.
Proposition A - to account for the City share of an additional one-half percent sales tax designated to fund certain
public transportation oriented projects.
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.
Measure R - to account for the half-cent sales tax approved by the Los Angeles County voters in November 2008
to meet transportation needs, including maintenance and improvement of arterial streets, traffic control, bikeway
and pedestrian improvements, and public transit.
Measure A - to account of 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.
Measure M - to account for the half-cent sales tax and continued half-cent relief tax partially distributed to cities
approved by the Los Angeles County voters in November 2016 to fund transportation needs.
Abalone Cove Sewer Assessment - to account for property assessments used to partially pay for operation and
maintenance of the Abalone Cove sewer system.
Dr. Allen and Charlotte Ginsburg Cultural Arts Building - 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.
70
(THIS PAGE INTENTIONALLY LEFT BLANK)
71
Special Revenue Fund Descriptions (Continued)
Donor Restricted Contributions - to account for donations received to construct or acquire recreational facilities
within the City.
Joint Powers Improvement Authority - Portuguese Bend - to account for maintenance and repairs of landslide
abatement improvements in the Portuguese Bend Project area.
Community Development Block Grant - to account for federal grants received from the Department of Housing
and Urban Development.
Federal Grants - to account for federal financial assistance programs.
Quimby - to account for developer paid fees or the dedication of land for park and recreation purposes.
Environmental Excise Tax - to account for taxes received in connection with new construction within the City.
Capital Projects Fund Descriptions
Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major
capital facilities.
Low-Moderate Income Housing - to account for low and moderate income housing assets that were transferred to
the City after electing to retain the housing assets and function of the former redevelopment agency, which was
dissolved on January 31, 2012.
Affordable Housing In-Lieu - to account for developer fees paid in-lieu of providing affordable housing in
conjunction with new development as required by the Affordable Housing Chapter of the City’s Municipal Code
(Chapter 17.11).
Permanent Fund Descriptions
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.
Habitat Restoration - to account for fees paid by developers for conservation easements to be used exclusively for
habitat restoration efforts on City owned property. The Habitat Restoration Fund to be funded at the rate of $10,000
annually (plus interest) for fifty (50) years, to provide for maintenance of habitat in the future.
Sub-region One Maintenance - to account for monies used to maintain public improvements and habitat areas
dedicated to the City upon completion of the Sub-region One residential development project also known as
Oceanfront Estates. As part of the development agreement, the City received a $750,000 non-expendable deposit.
The interest earnings contribute to the maintenance of the public open space.
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 part of this Agreement, the
Authority received a $1,000,000 non-expendable deposit. The interest earnings are used to pay for maintenance
and repair of Abalone Cove landslide abatement improvements.
Gas
Tax 1972 Act El Prado 1911 Act
Cash and investments 874,293$ 28,300$ 32,647$ 1,509,203$
Receivables:
Taxes - - 67 16,706
Interest 2,320 84 97 5,199
Other 140,201 - - -
TOTAL ASSETS 1,016,814$ 28,384$ 32,811$ 1,531,108$
Accounts payable and accrued liabilities 130,781$ -$ 36$ 64,602$
Due to other funds - - - -
Retentions payable 1,299 - - 6,894
Unearned revenue - - - -
TOTAL LIABILITIES 132,080 - 36 71,496
Unavailable revenue - - -
Non-Spendable:
Endowment principal - - - -
Reimbursement settlement agreement - - - -
Habitat restoration - - - -
Restricted 884,734 28,384 32,775 1,459,612
TOTAL FUND BALANCES 884,734 28,384 32,775 1,459,612
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 1,016,814$ 28,384$ 32,811$ 1,531,108$
Special Revenue Funds
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2019
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
ASSETS
LIABILITIES
72
Air Public
Waste Quality Safety
Beautification Reduction Management Proposition C Proposition A Grants Measure R
-$ 460,219$ 82,415$ 931,339$ 2,378,958$ 93,000$ 839,664$
- - - - - - -
- 1,340 231 2,819 6,075 341 2,438
- 16,027 14,366 - - - -
-$ 477,586$ 97,012$ 934,158$ 2,385,033$ 93,341$ 842,102$
-$ 13,676$ -$ 355,530$ 5,709$ -$ 38,953$
- - - - - - -
- - - 1,528 - - -
- 9,835 - - - - -
- 23,511 - 357,058 5,709 - 38,953
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- 454,075 97,012 577,100 2,379,324 93,341 803,149
- 454,075 97,012 577,100 2,379,324 93,341 803,149
-$ 477,586$ 97,012$ 934,158$ 2,385,033$ 93,341$ 842,102$
(Continued)
Special Revenue Funds (Continued)
73
Dr. Allen and
Charlotte
Ginsburg
Abalone Cove Cultural
Measure A Measure M Sewer Arts Building
Cash and investments 66,575$ 87,662$ 335,419$ 1,045$
Receivables:
Taxes - - - -
Interest 243 190 993 -
Other 52,632 - 1,499 -
TOTAL ASSETS 119,450$ 87,852$ 337,911$ 1,045$
Accounts payable and accrued liabilities -$ 44,145$ 957$ -$
Due to other funds - - - -
Retentions payable - - - -
Unearned revenue - - - -
TOTAL LIABILITIES - 44,145 957 -
Unavailable revenue 52,632 - - -
Non-Spendable:
Endowment principal - - - -
Reimbursement settlement agreement - - - -
Habitat restoration - - - -
Restricted 66,818 43,707 336,954 1,045
TOTAL FUND BALANCES 66,818 43,707 336,954 1,045
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 119,450$ 87,852$ 337,911$ 1,045$
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2019
LIABILITIES
ASSETS
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
74
Joint Powers
Improvement Community Total
Donor Authority Development Special
Restricted Portuguese Block Grant Federal Environmental Revenue
Contributions Bend (CDBG) Grants Quimby Excise Tax Funds
775,078$ 109,315$ -$ 47,310$ 1,723,561$ 510,061$ 10,886,064$
- - - - - - 16,773
2,302 808 - - 5,260 1,502 32,242
- - 160,243 51,005 - - 435,973
777,380$ 110,123$ 160,243$ 98,315$ 1,728,821$ 511,563$ 11,371,052$
2,217$ 29,148$ 5,848$ -$ 27,729$ -$ 719,331$
- - 125,949 - - - 125,949
- - 6,534 - - - 16,255
- - - - - - 9,835
2,217 29,148 138,331 - 27,729 - 871,370
- - 10,454 - - - 63,086
- - - - - - -
- - - - - - -
- - - - - - -
775,163 80,975 11,458 98,315 1,701,092 511,563 10,436,596
775,163 80,975 11,458 98,315 1,701,092 511,563 10,436,596
777,380$ 110,123$ 160,243$ 98,315$ 1,728,821$ 511,563$ 11,371,052$
(Continued)
Special Revenue Funds (Continued)
75
Total
Low-Moderate Affordable Capital
Income Housing Projects
Housing In-Lieu Funds
Cash and investments 189,899$ 836,349$ 1,026,248$
Receivables:
Taxes - - -
Interest 461 2,488 2,949
Other - - -
TOTAL ASSETS 190,360$ 838,837$ 1,029,197$
Accounts payable and accrued liabilities -$ -$ -$
Due to other funds - - -
Retentions payable - - -
Unearned revenue - - -
TOTAL LIABILITIES - - -
Unavailable revenue - - -
Non-Spendable:
Endowment principal - - -
Reimbursement settlement agreement - - -
Habitat restoration - - -
Restricted 190,360 838,837 1,029,197
TOTAL FUND BALANCES 190,360 838,837 1,029,197
TOTAL LIABILITIES, DEFERRED INFLOWS,
AND FUND BALANCES 190,360$ 838,837$ 1,029,197$
June 30, 2019
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
Capital Projects Funds
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
76
Joint Powers Total
Subregion Improvement Total Other
Habitat One Authority Permanent Governmental
Restoration Maintenance Abalone Cove Funds Funds
946,703$ 766,489$ 1,066,066$ 2,779,258$ 14,691,570$
- - - - 16,773
2,815 2,288 7,883 12,986 48,177
- - - - 435,973
949,518$ 768,777$ 1,073,949$ 2,792,244$ 15,192,493$
-$ 3,457$ 1,338$ 4,795$ 724,126$
- - - - 125,949
- - - - 16,255
- - - - 9,835
- 3,457 1,338 4,795 876,165
- - - - 63,086
- 750,000 - 750,000 750,000
- - 1,000,000 1,000,000 1,000,000
152,180 - - 152,180 152,180
797,338 15,320 72,611 885,269 12,351,062
949,518 765,320 1,072,611 2,787,449 14,253,242
949,518$ 768,777$ 1,073,949$ 2,792,244$ 15,192,493$
Permanent Funds
77
Gas
Tax 1972 Act El Prado 1911 Act
REVENUES:
Taxes -$ -$ 2,782$ 694,107$
Revenue from other agencies 1,659,572 - - -
Charges for services - - - -
Use of money and property 7,466 541 600 37,878
Other revenues 48,179 - - -
TOTAL REVENUES 1,715,217 541 3,382 731,985
EXPENDITURES:
Current:
Public works 830,552 - 594 1,393,546
Parks and recreation - - - -
TOTAL EXPENDITURES 830,552 - 594 1,393,546
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 884,665 541 2,788 (661,561)
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES (USES)- - - -
NET CHANGE IN FUND BALANCES 884,665 541 2,788 (661,561)
FUND BALANCES -
BEGINNING OF YEAR 69 27,843 29,987 2,121,173
FUND BALANCES -
END OF YEAR 884,734$ 28,384$ 32,775$ 1,459,612$
Special Revenue Funds
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2019
78
Air Public
Waste Quality Safety
Beautification Reduction Management Proposition C Proposition A Grants Measure R
-$ -$ -$ -$ -$ -$ -$
- 22,644 55,413 714,128 860,943 148,747 535,750
- 188,142 - - - - -
- 8,680 1,413 15,733 38,887 2,115 34,139
- - - - - - -
- 219,466 56,826 729,861 899,830 150,862 569,889
378,754 212,990 50,000 639,010 749,752 - 2,254,151
- - - - - - -
378,754 212,990 50,000 639,010 749,752 - 2,254,151
(378,754) 6,476 6,826 90,851 150,078 150,862 (1,684,262)
- - - - 300,000 - -
- - - - - (130,000) -
- - - - 300,000 (130,000) -
(378,754) 6,476 6,826 90,851 450,078 20,862 (1,684,262)
378,754 447,599 90,186 486,249 1,929,246 72,479 2,487,411
-$ 454,075$ 97,012$ 577,100$ 2,379,324$ 93,341$ 803,149$
(Continued)
Special Revenue Funds (Continued)
79
Dr. Allen and
Charlotte
Ginsburg
Abalone Cove Cultural
Measure A Measure M Sewer Arts Building
REVENUES:
Taxes -$ -$ 50,672$ -$
Revenue from other agencies 86,634 603,557 - -
Charges for services - - - -
Use of money and property 1,647 1,365 6,407 -
Other revenues - - - -
TOTAL REVENUES 88,281 604,922 57,079 -
EXPENDITURES:
Current:
Public works - 565,971 49,924 -
Parks and recreation - - - 86,344
TOTAL EXPENDITURES - 565,971 49,924 86,344
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 88,281 38,951 7,155 (86,344)
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out (90,000) - - -
TOTAL OTHER FINANCING
SOURCES (USES)(90,000) - - -
NET CHANGE IN FUND BALANCES (1,719) 38,951 7,155 (86,344)
FUND BALANCE -
BEGINNING OF YEAR 68,537 4,756 329,799 87,389
FUND BALANCES -
END OF YEAR 66,818$ 43,707$ 336,954$ 1,045$
(CONTINUED)
For the year ended June 30, 2019
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
80
Joint Powers
Improvement Community Total
Donor Authority Development Special
Restricted Portuguese Block Grant Federal Environmental Revenue
Contributions Bend (CDBG) Grants Quimby Excise Tax Funds
-$ -$ -$ -$ -$ -$ 747,561$
- - 178,591 141,443 - - 5,007,422
- - - - - - 188,142
16,090 3,451 - - 33,272 9,399 219,083
44,523 - - - - 39,020 131,722
60,613 3,451 178,591 141,443 33,272 48,419 6,293,930
168,942 78,333 196,190 - 145,474 - 7,714,183
- - - - - - 86,344
168,942 78,333 196,190 - 145,474 - 7,800,527
(108,329) (74,882) (17,599) 141,443 (112,202) 48,419 (1,506,597)
- 20,000 - - - - 320,000
- - - (1,087,318) - - (1,307,318)
- 20,000 - (1,087,318) - - (987,318)
(108,329) (54,882) (17,599) (945,875) (112,202) 48,419 (2,493,915)
883,492 135,857 29,057 1,044,190 1,813,294 463,144 12,930,511
775,163$ 80,975$ 11,458$ 98,315$ 1,701,092$ 511,563$ 10,436,596$
(Continued)
Special Revenue Funds (Continued)
81
Total
Low-Moderate Affordable Capital
Income Housing Projects
Housing In-Lieu Funds
REVENUES:
Taxes 34,984$ -$ 34,984$
Revenue from other agencies - - -
Charges for services - - -
Use of money and property 2,956 15,961 18,917
Other revenues - - -
TOTAL REVENUES 37,940 15,961 53,901
EXPENDITURES:
Current:
Public works - - -
Parks and recreation - - -
TOTAL EXPENDITURES - - -
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 37,940 15,961 53,901
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out - - -
TOTAL OTHER FINANCING
SOURCES (USES)- - -
NET CHANGE IN FUND BALANCES 37,940 15,961 53,901
FUND BALANCES -
BEGINNING OF YEAR 152,420 822,876 975,296
FUND BALANCES -
END OF YEAR 190,360$ 838,837$ 1,029,197$
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, 2019
Capital Projects Funds
82
Joint Powers Total
Subregion Improvement Total Other
Habitat One Authority Permanent Governmental
Restoration Maintenance Abalone Cove Funds Funds
-$ -$ -$ -$ 782,545$
- - - - 5,007,422
- - - - 188,142
19,953 14,969 29,100 64,022 302,022
- - - - 131,722
19,953 14,969 29,100 64,022 6,411,853
149,499 43,831 39,631 232,961 7,947,144
- - - - 86,344
149,499 43,831 39,631 232,961 8,033,488
(129,546) (28,862) (10,531) (168,939) (1,621,635)
- - 25,000 25,000 345,000
- - - - (1,307,318)
- - 25,000 25,000 (962,318)
(129,546) (28,862) 14,469 (143,939) (2,583,953)
1,079,064 794,182 1,058,142 2,931,388 16,837,195
949,518$ 765,320$ 1,072,611$ 2,787,449$ 14,253,242$
Permanent Funds
83
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 1,748,000$ 1,748,000$ 1,659,572$ (88,428)$
Use of money and property 1,800 1,800 7,466 5,666
Other revenues 48,800 48,800 48,179 (621)
TOTAL REVENUES 1,798,600 1,798,600 1,715,217 (83,383)
EXPENDITURES:
Public works:
Street landscape maintenance 26,000 26,000 16,770 9,230
Traffic signal maintenance 813,782 1,592,800 813,782 779,018
TOTAL EXPENDITURES 839,782 1,618,800 830,552 788,248
NET CHANGE IN FUND BALANCE 958,818 179,800 884,665 704,865
FUND BALANCE - BEGINNING OF YEAR 69 69 69 -
FUND BALANCE - END OF YEAR 958,887$ 179,869$ 884,734$ 704,865$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND
For the year ended June 30, 2019
84
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 300$ 300$ 541$ 241$
NET CHANGE IN FUND BALANCE 300 300 541 241
FUND BALANCE - BEGINNING OF YEAR 27,843 27,843 27,843 -
FUND BALANCE - END OF YEAR 28,143$ 28,143$ 28,384$ 241$
Budgeted Amounts
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, 2019
85
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 2,300$ 2,300 2,782$ 482$
Use of money and property 200 200 600 400
TOTAL REVENUES 2,500 2,500 3,382 882
EXPENDITURES:
Public works 800 800 594 206
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,700 1,700 2,788 1,088
FUND BALANCE - BEGINNING OF YEAR 29,987 29,987 29,987 -
FUND BALANCE - END OF YEAR 31,687$ 31,687$ 32,775$ 1,088$
Budgeted Amounts
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, 2019
86
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 606,800$ 606,800$ 694,107$ 87,307$
Use of money and property 21,200 21,200 37,878 16,678
TOTAL REVENUES 628,000 628,000 731,985 103,985
EXPENDITURES:
Public works 617,000 2,140,276 1,393,546 746,730
NET CHANGE IN FUND BALANCE 11,000 (1,512,276) (661,561) 850,715
FUND BALANCE - BEGINNING OF YEAR 2,121,173 2,121,173 2,121,173 -
FUND BALANCE - END OF YEAR 2,132,173$ 608,897$ 1,459,612$ 850,715$
Budgeted Amounts
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, 2019
87
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 5,000$ 5,000$ -$ (5,000)$
EXPENDITURES:
Public works - 405,585 378,754 26,831
NET CHANGE IN FUND BALANCE 5,000 (400,585) (378,754) 21,831
FUND BALANCE - BEGINNING OF YEAR 378,754 378,754 378,754 -
FUND BALANCE - END OF YEAR 383,754$ (21,831)$ -$ 21,831$
Budgeted Amounts
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, 2019
88
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 22,100$ 22,100$ 22,644$ 544$
Charges for services 185,000 185,000 188,142 3,142
Use of money and property 4,600 4,600 8,680 4,080
TOTAL REVENUES 211,700 211,700 219,466 7,766
EXPENDITURES:
Public works 317,100 317,100 212,990 104,110
NET CHANGE IN FUND BALANCE (105,400) (105,400) 6,476 111,876
FUND BALANCE - BEGINNING OF YEAR 447,599 447,599 447,599 -
FUND BALANCE - END OF YEAR 342,199$ 342,199$ 454,075$ 111,876$
Budgeted Amounts
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, 2019
89
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 50,000$ 50,000$ 55,413$ 5,413$
Use of money and property 900 900 1,413 513
TOTAL REVENUES 50,900 50,900 56,826 5,926
EXPENDITURES:
Public works 50,000 50,000 50,000 -
NET CHANGE IN FUND BALANCE 900 900 6,826 5,926
FUND BALANCE - BEGINNING OF YEAR 90,186 90,186 90,186 -
FUND BALANCE - END OF YEAR 91,086$ 91,086$ 97,012$ 5,926$
Budgeted Amounts
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, 2019
90
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 696,200$ 696,200$ 714,128$ 17,928$
Use of money and property 6,200 6,200 15,733 9,533
TOTAL REVENUES 702,400 702,400 729,861 27,461
EXPENDITURES:
Public works 600,000 700,000 639,010 60,990
NET CHANGE IN FUND BALANCE 102,400 2,400 90,851 88,451
FUND BALANCE - BEGINNING OF YEAR 486,249 486,249 486,249 -
FUND BALANCE - END OF YEAR 588,649$ 488,649$ 577,100$ 88,451$
Budgeted Amounts
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, 2019
91
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 839,400$ 839,400$ 860,943$ 21,543$
Use of money and property 10,000 10,000 38,887 28,887
TOTAL REVENUES 849,400 849,400 899,830 50,430
EXPENDITURES:
Public works 648,300 798,282 749,752 48,530
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 201,100 51,118 150,078 98,960
OTHER FINANCING USES:
Transfers in - 300,000 300,000 -
NET CHANGE IN FUND BALANCE 201,100 351,118 450,078 98,960
FUND BALANCE - BEGINNING OF YEAR 1,929,246 1,929,246 1,929,246 -
FUND BALANCE - END OF YEAR 2,130,346$ 2,280,364$ 2,379,324$ 98,960$
Budgeted Amounts
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, 2019
92
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 130,000$ 130,000$ 148,747$ 18,747$
Use of money and property 1,000 1,000 2,115 1,115
TOTAL REVENUES 131,000 131,000 150,862 19,862
OTHER FINANCING USES:
Transfers out (130,000) (130,000) (130,000) -
NET CHANGE IN FUND BALANCE 1,000 1,000 20,862 19,862
FUND BALANCE - BEGINNING OF YEAR 72,479 72,479 72,479 -
FUND BALANCE - END OF YEAR 73,479$ 73,479$ 93,341$ 19,862$
Budgeted Amounts
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, 2019
93
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 522,200$ 522,200$ 535,750$ 13,550$
Use of money and property 23,200 23,200 34,139 10,939
TOTAL REVENUES 545,400 545,400 569,889 24,489
EXPENDITURES:
Public works 100,000 2,400,000 2,254,151 145,849
NET CHANGE IN FUND BALANCE 445,400 (1,854,600) (1,684,262) (121,360)
FUND BALANCE - BEGINNING OF YEAR 2,487,411 2,487,411 2,487,411 -
FUND BALANCE - END OF YEAR 2,932,811$ 632,811$ 803,149$ (121,360)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE R SPECIAL REVENUE FUND
For the year ended June 30, 2019
94
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 90,000$ 90,000$ 86,634$ (3,366)$
Use of money and property 1,100 1,100 1,647 547
TOTAL REVENUES 91,100 91,100 88,281 (2,819)
OTHER FINANCING USES:
Transfers out (90,000) (90,000) (90,000) -
NET CHANGE IN FUND BALANCE 1,100 1,100 (1,719) (2,819)
FUND BALANCE - BEGINNING OF YEAR 68,537 68,537 68,537 -
FUND BALANCE - END OF YEAR 69,637$ 69,637$ 66,818$ (2,819)$
Budgeted Amounts
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, 2019
95
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 591,800$ 591,800$ 603,557$ 11,757$
Use of money and property 300 1,100 1,365 265
TOTAL REVENUES 592,100 592,900 604,922 12,022
EXPENDITURES:
Public works 536,000 536,000 565,971 (29,971)
NET CHANGE IN FUND BALANCE 56,100 56,900 38,951 (17,949)
FUND BALANCE - BEGINNING OF YEAR 4,756 4,756 4,756 -
FUND BALANCE - END OF YEAR 60,856$ 61,656$ 43,707$ (17,949)$
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
For the year ended June 30, 2019
Budgeted Amounts
96
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 55,100$ 55,100$ 50,672$ (4,428)$
Use of money and property 1,900 1,900 6,407 4,507
TOTAL REVENUES 57,000 57,000 57,079 79
EXPENDITURES:
Public works 429,600 431,906 49,924 381,982
NET CHANGE IN FUND BALANCE (372,600) (374,906) 7,155 382,061
FUND BALANCE - BEGINNING OF YEAR 329,799 329,799 329,799 -
FUND BALANCE - END OF YEAR (42,801)$ (45,107)$ 336,954$ 382,061$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ABALONE COVE SEWER ASSESSMENT SPECIAL REVENUE FUND
For the year ended June 30, 2019
97
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 900$ 900$ -$ (900)$
EXPENDITURES:
Parks and recreation - - 86,344 (86,344)
NET CHANGE IN FUND BALANCE 900 900 (86,344) 85,444
FUND BALANCE - BEGINNING OF YEAR 87,389 87,389 87,389 -
FUND BALANCE - END OF YEAR 88,289$ 88,289$ 1,045$ 85,444$
Budgeted Amounts
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
For the year ended June 30, 2019
SPECIAL REVENUE FUND
98
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 9,500$ 9,500$ 16,090$ 6,590$
Other revenue 7,500 7,500 44,523 37,023
TOTAL REVENUES 17,000 17,000 60,613 43,613
EXPENDITURES:
Public works 25,000 267,409 168,942 98,467
NET CHANGE IN FUND BALANCE (8,000) (250,409) (108,329) (54,854)
FUND BALANCE - BEGINNING OF YEAR 883,492 883,492 883,492 -
FUND BALANCE - END OF YEAR 875,492$ 633,083$ 775,163$ (54,854)$
Budgeted Amounts
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, 2019
99
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 1,100$ 1,100$ 3,451$ 2,351$
EXPENDITURES:
Public works 122,000 122,000 78,333 43,667
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (120,900) (120,900) (74,882) 46,018$
OTHER FINANCING SOURCES:
Transfers in 20,000 20,000 20,000 -
NET CHANGE IN FUND BALANCE (100,900) (100,900) (54,882) 46,018
FUND BALANCE - BEGINNING OF YEAR 135,857 135,857 135,857 -
FUND BALANCE - END OF YEAR 34,957$ 34,957$ 80,975$ 46,018$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND
For the year ended June 30, 2019
SPECIAL REVENUE FUND
100
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 139,300$ 139,300$ 178,591$ 39,291$
EXPENDITURES:
Public works - 260,217 196,190 64,027
NET CHANGE IN FUND BALANCE 139,300 (120,917) (17,599) 103,318
FUND BALANCE - BEGINNING OF YEAR 29,057 29,057 29,057 -
FUND BALANCE - END OF YEAR 168,357$ (91,860)$ 11,458$ 103,318$
Budgeted Amounts
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, 2019
101
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 452,800$ 452,800$ 141,443$ (311,357)$
Use of money and property 1,000 1,000 - (1,000)
TOTAL REVENUES 453,800 453,800 141,443 (312,357)
OTHER FINANCING SOURCES:
Transfers out (316,000) (1,087,318) (1,087,318) -
NET CHANGE IN FUND BALANCE 137,800 (633,518) (945,875) (312,357)
FUND BALANCE - BEGINNING OF YEAR 1,044,190 1,044,190 1,044,190 -
FUND BALANCE - END OF YEAR 1,181,990$ 410,672$ 98,315$ (312,357)$
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FEDERAL GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2019
Budgeted Amounts
102
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 22,000$ 22,000$ 33,272$ 11,272$
Other revenues 51,000 51,000 - (51,000)
TOTAL REVENUES 73,000 73,000 33,272 (39,728)
EXPENDITURES:
Public works 300,000 988,630 145,474 843,156
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (227,000) (915,630) (112,202) 803,428
FUND BALANCE - BEGINNING OF YEAR 1,813,294 1,813,294 1,813,294 -
FUND BALANCE - END OF YEAR 1,586,294$ 897,664$ 1,701,092$ 803,428$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
QUIMBY SPECIAL REVENUE FUND
For the year ended June 30, 2019
103
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 3,800$ 3,800$ 9,399$ 5,599$
Other revenues 113,000 113,000 39,020 (73,980)
TOTAL REVENUES 116,800 116,800 48,419 (68,381)
NET CHANGE IN FUND BALANCE 116,800 116,800 48,419 (68,381)
FUND BALANCE - BEGINNING OF YEAR 463,144 463,144 463,144 -
FUND BALANCE - END OF YEAR 579,944$ 579,944$ 511,563$ (68,381)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX SPECIAL REVENUE FUND
For the year ended June 30, 2019
104
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 43,200$ 43,200$ 34,984$ (8,216)$
Use of money and property 1,500 1,500 2,956 -
NET CHANGE IN FUND BALANCE 44,700 44,700 37,940 (8,216)
FUND BALANCE - BEGINNING OF YEAR 152,420 152,420 152,420 -
FUND BALANCE - END OF YEAR 197,120$ 197,120$ 190,360$ (8,216)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LOW-MODERATE INCOME CAPITAL PROJECTS FUND
For the year ended June 30, 2019
105
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 6,200$ 6,200$ 15,961$ 9,761$
NET CHANGE IN FUND BALANCE 6,200 6,200 15,961 9,761
FUND BALANCE - BEGINNING OF YEAR 822,876 822,876 822,876 -
FUND BALANCE - END OF YEAR 829,076$ 829,076$ 838,837$ 9,761$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AFFORDABLE HOUSING IN-LIEU CAPITAL PROJECTS FUND
For the year ended June 30, 2019
106
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 12,400$ 12,400$ 19,953$ 7,553$
EXPENDITURES:
Public works 179,500 179,500 149,499 30,001
NET CHANGE IN FUND BALANCE (167,100) (167,100) (129,546) 37,554
FUND BALANCE - BEGINNING OF YEAR 1,079,064 1,079,064 1,079,064 -
FUND BALANCE - END OF YEAR 911,964$ 911,964$ 949,518$ 37,554$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HABITAT RESTORATION PERMANENT FUND
For the year ended June 30, 2019
107
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 8,100$ 8,100$ 14,969$ 6,869$
EXPENDITURES:
Public works 46,800 46,800 43,831 2,969
NET CHANGE IN FUND BALANCE (38,700) (38,700) (28,862) 3,900
FUND BALANCE - BEGINNING OF YEAR 794,182 794,182 794,182 -
FUND BALANCE - END OF YEAR 755,482$ 755,482$ 765,320$ 3,900$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SUBREGION ONE PERMANENT FUND
For the year ended June 30, 2019
108
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 3,400$ 3,400$ 29,100$ 25,700$
EXPENDITURES:
Public works 75,700 75,700 39,631 36,069
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (72,300) (72,300) (10,531) (10,369)
OTHER FINANCING SOURCES:
Transfers in 25,000 25,000 25,000 -
NET CHANGE IN FUND BALANCE (47,300) (47,300) 14,469 (10,369)
FUND BALANCE - BEGINNING OF YEAR 1,058,142 1,058,142 1,058,142 -
FUND BALANCE - END OF YEAR 1,010,842$ 1,010,842$ 1,072,611$ (10,369)$
Budgeted Amounts
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, 2019
109
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies -$ -$ 5,007$ 5,007$
Use of money and property 285,500 285,500 508,963 223,463
TOTAL REVENUES 285,500 285,500 513,970 228,470
EXPENDITURES:
Capital Outlay
Infrastructure administration - 805,324 160,098 645,226
Street improvements 3,845,000 3,584,619 2,097,774 1,486,845
Parks/Trails/Open Space improvements 524,000 769,437 414,845 354,592
Sewer improvements 250,000 201,995 - 201,995
Landslide improvements 161,100 868,506 414,404 454,102
Building improvements 150,000 681,819 204,303 477,516
TOTAL EXPENDITURES 4,930,100 6,911,700 3,291,424 3,620,276
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,644,600) (6,626,200) (2,777,454) 3,848,746
OTHER FINANCING SOURCES:
Transfers in 4,519,700 4,519,700 5,389,170 869,470
NET CHANGE IN FUND BALANCE (124,900) (2,106,500) 2,611,716 4,718,216
FUND BALANCE - BEGINNING OF YEAR 24,405,475 24,405,475 24,405,475 -
FUND BALANCE - END OF YEAR 24,280,575$ 22,298,975$ 27,017,191$ 4,718,216$
Budgeted Amounts
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, 2019
110
STATISTICAL SECTION
111
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 112
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 123
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 139
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.
2010 2011 2012 2013 2014
Governmental activities
Net investment in capital assets 115,331$ 115,145$ 114,488$ 113,284$ 114,427$
Restricted 1,000 1,750 1,750 1,835 11,792
Unrestricted 31,855 39,066 67,112 46,687 46,679
Total governmental activities net position 148,186$ 155,961$ 183,351$ 161,806$ 172,898$
Business-type activities
Net investment in capital assets 12,458$ 12,753$ 13,356$ 18,319$ 29,557$
Restricted - - - - -
Unrestricted 2,825 3,365 3,532 9,727 5,317
Total business-type activities net position 15,283$ 16,118$ 16,888$ 28,046$ 34,874$
Primary government
Net investment in capital assets 127,789$ 127,898$ 127,845$ 131,603$ 143,984$
Restricted 1,000 1,750 1,750 1,835 11,792
Unrestricted 34,680 42,431 70,644 56,414 51,996
Total primary government net position 163,469$ 172,079$ 200,238$ 189,852$ 207,772$
City of Rancho Palos Verdes
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
112
2015 2016 2017 2018 2019
Governmental activities
Net investment in capital assets 119,450$ 118,399$ 123,437$ 125,420$ 159,557$
Restricted 11,647 21,120 19,387 17,300 16,170
Unrestricted 42,208 42,210 43,618 44,168 47,739
Total governmental activities net position 173,305$ 181,729$ 186,442$ 186,888$ 223,466$
Business-type activities
Net investment in capital assets 31,168$ 31,663$ 31,311$ 34,996$ -$
Restricted - - - - -
Unrestricted 5,334 5,598 4,600 (128) -
Total business-type activities net position 36,502$ 37,261$ 35,911$ 34,868$ -$
Primary government
Net investment in capital assets 150,618$ 150,062$ 154,748$ 160,416$ 159,557$
Restricted 11,647 21,120 19,387 17,300 16,170
Unrestricted 47,542 47,808 48,218 44,040 47,739
Total primary government net position 209,807$ 218,990$ 222,353$ 221,756$ 223,466$
City of Rancho Palos Verdes
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
113
2010 2011 2012 2013 2014
Expenses
Governmental activities:
Administration 7,824$ 5,997$ 5,906$ 5,534$ 7,530$
Public safety 4,242 4,335 4,178 4,348 4,429
Public works 13,633 10,389 11,202 10,874 9,377
Community development 2,550 2,622 2,432 2,526 1,927
Parks and recreation 1,826 1,391 1,490 1,696 1,369
Non-departmental 320 - - - 35
Interest on long-term debt 265 260 109 - -
Total governmental activities expenses 30,660 24,994 25,318 24,978 24,667
Business-type activities:
Water Quality Flood Protection 580 489 560 594 659
Total primary government expenses 31,240$ 25,483$ 25,878$ 25,572$ 25,326$
Program Revenues
Governmental activities:
Charges for services:
Administration 681$ 654$ 747$ 779$ 120$
Public safety 229 261 194 150 42
Public works 1,356 622 684 543 169
Community development 1,764 1,714 1,644 1,854 1,772
Parks and recreation 896 457 503 476 18
Non-departmental - - - - -
Operating grants and contributions 6,633 3,689 3,628 4,133 2,506
Capital grants and contributions 7,179 5 139 139 2,912
Total governmental activities program revenues 18,738 7,402 7,538 8,074 7,539
Business-type activities:
Charges for services:
Water Quality Flood Protection 1,264 1,312 1,319 1,313 1,361
Operating grants and contributions - - - 2,137 -
Capital grants and contributions - - - - 6,115
Total business-type activities program revenues 1,264 1,312 1,319 3,450 7,476
Total primary government program revenues 20,002$ 8,714$ 8,857$ 11,524$ 15,015$
Net (expense)/revenue
Governmental activities (11,922)$ (17,592)$ (17,780)$ (16,904)$ (17,128)$
Business-type activities 684 823 759 2,856 6,817
Total primary government net expense (11,238)$ (16,769)$ (17,022)$ (14,048)$ (10,311)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 11,431$ 11,854$ 11,480$ 11,284$ 11,991$
Transient occupancy tax 1,955 2,640 3,349 3,790 4,250
Sales taxes 1,246 1,548 1,449 1,588 1,642
Franchise taxes 1,711 1,825 1,881 1,907 1,998
Utility user taxes 2,395 2,407 2,333 2,481 2,510
Other taxes 712 814 674 778 1,589
Investment income 207 318 604 184 94
Other 307 271 52 929 4,146
Transfers - - - (8,293) -
Extraordinary item - - 23,348 (19,289) -
Total governmental activities 19,964 21,677 45,170 (4,641) 28,220
Business-type activities:
Investment income 14 13 11 10 11
User Fees - - - - -
Other - - - - -
Transfers - - - 8,293 -
Total business-type activities 14 13 11 8,303 11
Total primary government 19,978$ 21,690$ 45,181$ 3,662$ 28,231$
Change in Net Position
Governmental activities 8,042$ 4,085$ 27,390$ (21,545)$ 11,092$
Business-type activities 698 836 770 11,159 6,828
Total primary government net expense 8,740$ 4,921$ 28,159$ (10,386)$ 17,920$
City of Rancho Palos Verdes
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
114
2015 2016 2017 2018 2019
Expenses
Governmental activities:
Administration 7,127$ 8,062$ 6,746$ 7,258$ 6,563$
Public safety 4,670 5,215 6,534 7,339 7,214
Public works 10,692 9,610 10,638 16,073 16,064
Community development 2,072 1,971 2,664 2,726 3,052
Parks and recreation 1,669 2,052 2,434 2,736 3,064
Non-departmental 191 134 2,400 1,166 1,134
Interest on long-term debt - - - - -
Total governmental activities expenses 26,421 27,044 31,416 37,298 37,091
Business-type activities:
Water Quality Flood Protection 1,423 646 1,400 1,071 811
Total primary government expenses 27,844$ 27,690$ 32,816$ 38,369$ 37,902$
Program Revenues
Governmental activities:
Charges for services:
Administration 108$ 318$ 1,081$ 1,032$ 1,065$
Public safety 43 179 140 124 104
Public works 432 159 274 659 227
Community development 2,058 958 2,066 729 2,130
Parks and recreation 144 781 708 2,083 766
Non-departmental - 96 - - -
Operating grants and contributions 2,274 2,332 4,196 4,481 4,608
Capital grants and contributions 1,230 1,111 818 769 1,137
Total governmental activities program revenues 6,289 5,934 9,283 9,877 10,037
Business-type activities:
Charges for services:
Water Quality Flood Protection 1,369 1,385 11 - -
Operating grants and contributions - - - - -
Capital grants and contributions 1,213 - - - -
Total business-type activities program revenues 2,582 1,385 11 - -
Total primary government program revenues 8,871$ 7,319$ 9,294$ 9,877$ 10,037$
Net (expense)/revenue
Governmental activities (20,132)$ (21,110)$ (22,133)$ (27,421)$ (27,054)$
Business-type activities 1,159 738 (1,389) (1,071) (811)
Total primary government net expense (18,973)$ (20,372)$ (23,522)$ (28,492)$ (27,865)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 12,452$ 13,764$ 13,302$ 13,762$ 14,350$
Transient occupancy tax 4,812 5,197 5,601 5,615 5,645
Sales taxes 1,758 2,104 2,463 2,520 2,661
Franchise taxes 2,045 2,045 1,985 2,129 2,150
Utility user taxes 1,973 1,866 1,775 1,838 1,917
Other taxes 1,564 1,179 365 402 429
Investment income 122 214 434 839 1,313
Other 3,231 2,608 920 763 909
Transfers (458) - - - 34,258
Extraordinary item - - - - -
Total governmental activities 27,499 28,977 26,845 27,868 63,632
Business-type activities:
Investment income 10 21 35 29 -
User Fees - - - - -
Other - - - - 200
Transfers 458 - 3 - (34,258)
Total business-type activities 468 21 38 29 (34,058)
Total primary government 27,967$ 28,998$ 26,883$ 27,897$ 29,574$
Change in Net Position
Governmental activities 7,367$ 7,868$ 4,713$ 447$ 36,578$
Business-type activities 1,627 759 (1,351) (1,042) (34,869)
Total primary government net expense 8,994$ 8,627$ 3,362$ (595)$ 1,709$
City of Rancho Palos Verdes
(amounts expressed in thousands)
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position
115
116
(THIS PAGE INTENTIONALLY LEFT BLANK)
Transient Utility
Fiscal Property Occupancy Sales Franchise Users Other
Year Tax Tax Tax Tax Tax Taxes Total,,,,,
2010 11,431 1,955 1,246 1,711 2,395 712 19,450
2011 11,854 2,640 1,548 1,825 2,407 814 21,088
2012 11,480 3,349 1,449 1,881 2,333 674 21,166
2013 11,284 3,790 1,588 1,907 2,481 778 21,828
2014 11,991 4,250 1,642 1,998 2,510 1,589 23,980
2015 12,452 4,812 1,758 2,044 1,973 1,564 24,603
2016 13,764 5,197 2,104 2,045 1,866 1,179 26,155
2017 13,302 5,601 2,463 1,985 1,775 365 25,491
2018 13,762 5,615 2,520 2,129 1,838 402 26,266
2019 14,350 5,645 2,661 2,150 1,917 429 27,152
Source
City General Ledger
City of Rancho Palos Verdes
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
117
2010
General Fund
Reserved 7,166$
Designated 1,462
Unreserved, Undesignated 10,745
Total General Fund 19,373$
All other Governmental Funds
Reserved 6,361$
Designated
Special Revenue Funds 85
Capital Projects Funds 7,494
Permanent Fund -
Debt Service Fund -
Unreserved, Undesignated, reported in:
Special Revenue Funds 6,058
Capital Projects Funds 1,240
Permanent Fund 333
Debt Service Fund (17,797)
Total all other Governmental Funds 3,774$
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Three Fiscal Years - Before GASB 54
(modified accrual basis of accounting)
(amounts expressed in thousands)
118
2011 2012 2013 2014 2015 2016 2017 2018 2019
General Fund
Non-Spendable 7,515$ 7,493$ 138$ 144$ 598$ 564$ 190$ 913$ 1,016$
Restricted - - - - - - - - -
Committed - - - - - 802 964 715 341
Assigned - - - - - - - - -
Unassigned 11,385 12,464 14,370 15,474 16,055 13,702 15,671 16,450 19,431
Total General Fund 18,900$ 19,957$ 14,508$ 15,618$ 16,653$ 15,068$ 16,825$ 18,078$ 20,788$
All other Governmental Funds
Non-Spendable
Special Revenue Funds 4,818$ 3,066$ -$ -$ -$ -$ -$ -$ -$
Debt Service Fund 573 - - - - - - -
Capital Projects Funds - - - - - - -
Permanent Fund 1,750 1,750 1,835 1,845 1,855 1,866 1,877 1,889 1,902
Restricted
Special Revenue Funds 7,952 8,187 7,849 8,445 8,362 9,757 11,702 12,825 10,437
Capital Projects Funds 313 - - - 3,000 4,660 1,438 2,946
Permanent Fund 319 226 280 1,502 1,492 1,312 1,148 1,148 885
Committed
Special Revenue Funds 36 58 55 353 - - -
Capital Projects Funds - - - 3,467 - - -
Permanent Fund - - - - - - -
Assigned
Special Revenue Funds - 794 572 476 479 - -
Capital Projects Funds 11,650 15,407 13,084 18,535 21,078 23,902 23,149 23,942 25,100
Permanent Fund - - - - - - -
Unassigned
Special Revenue Funds (126) (108) (198) (116) (59) - - - (564)
Debt Service Fund (19,687) - - - - - - -
Capital Projects Funds - - - - - - -
Permanent Fund - - - - - - -
Total all other Governmental Funds 7,562$ 28,528$ 22,885$ 31,063$ 33,355$ 44,133$ 43,015$ 41,242$ 40,706$
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Seven Fiscal Years - After GASB 54
(modified accrual basis of accounting)
(amounts expressed in thousands)
119
2010 2011 2012 2013 2014
Revenues
Taxes 19,844$ 21,419$ 21,867$ 22,543$ 23,981$
Licenses and permits 1,954 1,933 1,806 2,027 1,951
Fines and forfeitures 179 210 159 117 128
Use of money and property 1,601 1,560 1,350 1,383 846
Charges for services 81 73 149 141 323
Donation - - - 445 -
Revenues from other agencies 10,180 3,162 3,421 3,395 5,301
Other Revenues 4,806 229 259 741 3,068
Total Revenues 38,645 28,586 29,011 30,791 35,598
Expenditures
Administration 5,720 5,503 5,726 5,401 5,792
Public Safety 4,242 4,335 4,178 4,348 4,492
Public Works 6,896 7,875 7,616 7,240 7,611
Parks and Recreation 1,702 1,257 1,479 1,557 1,573
Community Development 2,604 2,784 2,484 2,591 2,640
Non-Departmental 320 - - - 35
Pass Through to other agencies - - - - -
Capital Outlay 14,567 2,557 3,155 2,721 4,113
Debt Service
Principal 419 423 464 - -
Interest 886 887 498 - -
Total Expenditures 37,356 25,621 25,599 23,857 26,256
Excess of Revenues over (under) Expenditures 1,289 2,965 3,412 6,934 9,342
Other Financing Sources (uses)
Sales of capital assets - 350 - - -
Transfers in 4,616 8,944 8,226 7,954 10,424
Transfers out (6,192) (8,944) (7,856) (16,247) (10,479)
Bond Proceeds - - - - -
Advances to the Redevelopment Agency - - - - -
Total Other Financing Sources (uses) (1,576) 350 371 (8,293) (55)
Extraordinary Gain (Loss) - - 18,240 (6,743) -
Net change in Fund Balances (287)$ 3,315$ 22,023$ (8,102)$ 9,287$
Cost of Assets Capitalized 10,866 3,180 2,865 2,022 4,820
Debt Services as a percentage of Non-Capital Expenditures 4.9% 5.8% 4.2% 0.0% 0.0%
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)
120
2015 2016 2017 2018 2019
Revenues
Taxes 24,603$ 25,725$ 25,491$ 26,266$ 28,098$
Licenses and permits 2,515 2,383 3,044 3,095 2,205
Fines and forfeitures 135 180 153 144 331
Use of money and property 653 750 415 714 1,656
Charges for services 427 558 1,072 1,113 215
Donation - - - - -
Revenues from other agencies 3,794 3,443 5,117 5,345 5,158
Other Revenues 2,377 1,668 732 1,038 1,026
Total Revenues 34,504 34,707 36,024 37,715 38,689
Expenditures
Administration 5,135 6,183 5,445 5,867 5,581
Public Safety 4,761 5,215 6,534 7,399 7,214
Public Works 8,042 7,961 9,084 11,068 13,546
Parks and Recreation 1,819 2,042 2,175 2,493 2,769
Community Development 2,870 2,619 2,664 2,736 3,052
Non-Departmental 190 238 2,400 1,167 1,134
Pass Through to other agencies - - - - -
Capital Outlay 8,697 1,344 7,106 7,504 3,291
Debt Service
Principal - - - - -
Interest - - - - -
Total Expenditures 31,514 25,602 35,408 38,234 36,587
Excess of Revenues over (under) Expenditures 2,990 9,105 616 (519) 2,102
Other Financing Sources (uses)
Sales of capital assets - - - - -
Transfers in 13,525 11,784 4,577 5,044 6,027
Transfers out (13,188) (11,784) (4,577) (5,044) (5,954)
Bond Proceeds - - - - -
Advances to the Redevelopment Agency - - - - -
Total Other Financing Sources (uses) 337 - - - 73
Extraordinary Gain (Loss) - - - - -
Net change in Fund Balances 3,327$ 9,105$ 616$ (519)$ 2,175$
Cost of Assets Capitalized 8,490 2,398 8,228 8,228 5,496
Debt Services as a percentage of Non-Capital Expenditures 0.0% 0.0% 0.0% 0.0% 0.0%
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)
121
Transient Utility
Fiscal Property Occupancy Sales Franchise Users Other
Year Tax Tax Tax Tax Tax Taxes Total
2010 11,431 1,955 1,158 1,711 2,395 1,194 19,844
2011 11,854 2,640 1,518 1,825 2,407 1,175 21,419
2012 11,480 3,349 1,452 1,881 2,333 1,372 21,867
2013 11,284 3,790 1,589 1,907 2,481 1,492 22,543
2014 11,991 4,250 1,642 1,998 2,510 1,590 23,981
2015 12,452 4,812 1,758 2,044 1,973 1,564 24,603
2016 13,764 5,197 2,104 2,045 1,866 1,179 26,155
2017 13,302 5,601 2,463 1,985 1,775 365 25,491
2018 13,028 5,615 2,520 2,129 1,838 1,290 26,420
2019 13,567 5,645 2,661 2,150 1,917 1,376 27,316
Source
City General Ledger
City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts expressed in thousands)
122
Fiscal
Year Residential Commercial Industrial Other Unsecured
End Property Property Property Property Property
2010 8,333,042 263,157 3,341 598,539 49,628
2011 8,362,052 396,195 3,333 570,551 45,258
2012 8,596,777 390,497 3,358 564,763 70,284
2013 8,843,139 402,533 3,425 581,160 48,147
2014 9,190,789 475,510 3,493 660,569 46,962
2015 9,492,704 486,378 3,509 679,241 45,906
2016 10,094,704 501,636 3,580 695,738 44,300
2017 10,770,321 531,536 3,634 506,899 24,986
2018 11,302,341 541,829 3,707 521,883 26,829
2019 11,924,464 580,286 3,781 551,820 25,824
2010-2013 & 2006-07 County Assessor data, Avenu Insights & Analytics
2008-2009 data is provided from previously published CAFR's
Unitary value of $840,000 is excluded.
City of Rancho Palos Verdes
Assessed Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
Source
123
124
(THIS PAGE INTENTIONALLY LEFT BLANK)
City Estimated Assessed
Fiscal Less Taxable Direct Actual Factor of Value as a
Year Tax-Exempt Assessed Tax Taxable Taxable Percentage of
End Property Value Rate (1) Value (2) Assessed Value (3) Actual Value
2010 236,925 9,010,782 0.063728 9,515,593$ 1.05602 94.69%
2011 158,388 9,219,001 0.063728 9,067,313$ 0.98355 101.67%
2012 157,307 9,468,372 0.063728 10,683,820$ 1.12837 88.62%
2013 174,167 9,704,237 0.063728 11,390,239$ 1.17374 85.20%
2014 153,434 10,223,889 0.063728 13,967,877$ 1.36620 73.20%
2015 151,709 10,556,029 0.063728 13,571,675$ 1.28568 77.78%
2016 155,138 11,184,820 0.063728 15,366,477$ 1.37387 72.79%
2017 174,779 11,662,598 0.063728 17,011,415$ 1.45863 68.56%
2018 180,953 12,215,635 0.063728 15,669,728$ 1.28276 77.96%
2019 184,447 12,901,730 0.063728 17,984,167$ 1.39393 71.74%
City of Rancho Palos Verdes
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
Source
(1) City Direct Tax Rate is represented by TRA 001-224.
(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based
on these calculations a factor was extrapolated and applied to current assessed values.
2010-2013 & 2006-07 County Assessor data, Avenu Insights & Analytics
2008-2009 data is provided from previously published CAFR's
Unitary value of $840,000 is excluded.
125
2009-10 2010-11 2011-12 2011-12 2013-14
CITY DIRECT RATE 0.063728 0.063728 0.063728 0.063728 0.063728
All other direct rates:
LA COUNTY GENERAL 0.441223 0.441223 0.441223 0.441223 0.441223
LA COUNTY ACCUM CAP OUTLAY 0.000110 0.000110 0.000110 0.000110 0.000110
CONSOL. FIRE PRO.DIST OF LA CO. 0.169715 0.169715 0.169715 0.169715 0.169715
LA CO. FIRE-FFW 0.006910 0.006910 0.006910 0.006910 0.006910
LA CO.FL.CON.DR.IMP.DIST.MAINT. 0.002597 0.002597 0.002597 0.002597 0.002597
LA CO FLOOD CONTROL MAINT 0.014699 0.014699 0.014699 0.014699 0.014699
PALOS VERDES LIBRARY DIST MAINT 0.043470 0.043470 0.043470 0.043470 0.043470
LA CO WEST VECTOR CONTROL DIST. 0.000319 0.000319 0.000319 0.000319 0.000319
CO SANITATION DIST NO 5 OPERAT 0.017499 0.017499 0.017499 0.017499 0.017499
WTR REPLENISHMENT DIST OF SO CAL 0.000181 0.000181 0.000181 0.000181 0.000181
ERAF 0.000000 0.000000 0.000000 0.000000 0.000000
EDUCATIONAL AUG FD IMPOUND 0.000000 0.000000 0.000000 0.000000 0.000000
COUNTY SCHOOL SERVICES 0.001369 0.001369 0.001369 0.001369 0.001369
CHILDREN'S INSTIL TUITION FUND 0.002717 0.002717 0.002717 0.002717 0.002717
LA CITY COMM COLLEGE DIST 0.029214 0.029214 0.029214 0.029214 0.029214
LA COMM COLL CHILDREN'S CTR FD 0.000302 0.000302 0.000302 0.000302 0.000302
PALOS VERDES PENINSULA USD 0.196986 0.196986 0.196986 0.196986 0.196986
CO.SCH.SERV.FD-LOS ANGELES 0.008085 0.008085 0.008085 0.008085 0.008085
DEV.CTR.HDCPD MINOR-LA UNIF. 0.000876 0.000876 0.000876 0.000876 0.000876
TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Debt Service Rates
COUNTY 0.000000 0.000000 0.000000 0.000000 0.000000
PALOS VERDES PEN USD 0.021642 0.022493 0.022511 0.022511 0.023109
COMMNTY COLLEGE 0.023112 0.040310 0.035296 0.035296 0.044541
PALOS VERDES LIB 0.006618 0.006719 0.006359 0.006359 0.006118
FLOOD CONTROL 0.000000 0.000000 0.000000 0.000000 0.000000
METRO WATER DIST 0.004300 0.003700 0.003700 0.003700 0.003500
TOTAL 0.055672 0.073222 0.067866 0.067866 0.077268
TOTAL TAX RATE 1.055672 1.073222 1.067866 1.067866 1.077268
Source
2010-2015 County Assessor data, Avenu Insights & Analytics
2007-2009 data is provided from previously published CAFR's
City has no separate debt service rate, direct rate is 100% operating.
TRA 149 is represented for this report.
City of Rancho Palos Verdes
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
126
2014-15 2015-16 2016-17 2017-18 2018-19
CITY DIRECT RATE 0.063728 0.063728 0.063728 0.063728 0.063728
All other direct rates:
LA COUNTY GENERAL 0.441223 0.441223 0.441223 0.441223 0.441223
LA COUNTY ACCUM CAP OUTLAY 0.000110 0.000110 0.000110 0.000110 0.000110
CONSOL. FIRE PRO.DIST OF LA CO. 0.169715 0.169715 0.169715 0.169715 0.169715
LA CO. FIRE-FFW 0.006910 0.006910 0.006910 0.006910 0.006910
LA CO.FL.CON.DR.IMP.DIST.MAINT. 0.002597 0.002597 0.002597 0.002597 0.002597
LA CO FLOOD CONTROL MAINT 0.014699 0.014699 0.014699 0.014699 0.014699
PALOS VERDES LIBRARY DIST MAINT 0.043470 0.043470 0.043470 0.043470 0.043470
LA CO WEST VECTOR CONTROL DIST. 0.000319 0.000319 0.000319 0.000319 0.000319
CO SANITATION DIST NO 5 OPERAT 0.017499 0.017499 0.017499 0.017499 0.017499
WTR REPLENISHMENT DIST OF SO CAL 0.000181 0.000181 0.000181 0.000181 0.000181
ERAF 0.000000 0.000000 0.000000 0.000000 0.000000
EDUCATIONAL AUG FD IMPOUND 0.000000 0.000000 0.000000 0.000000 0.000000
COUNTY SCHOOL SERVICES 0.001369 0.001369 0.001369 0.001369 0.001369
CHILDREN'S INSTIL TUITION FUND 0.002717 0.002717 0.002717 0.002717 0.002717
LA CITY COMM COLLEGE DIST 0.029214 0.029214 0.029214 0.029214 0.029214
LA COMM COLL CHILDREN'S CTR FD 0.000302 0.000302 0.000302 0.000302 0.000302
PALOS VERDES PENINSULA USD 0.196986 0.196986 0.196986 0.196986 0.196986
CO.SCH.SERV.FD-LOS ANGELES 0.008085 0.008085 0.008085 0.008085 0.008085
DEV.CTR.HDCPD MINOR-LA UNIF. 0.000876 0.000876 0.000876 0.000876 0.000876
TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Debt Service Rates
COUNTY 0.000000 0.000000 0.000000 0.000000 0.000000
PALOS VERDES PEN USD 0.023289 0.023433 0.023197 0.023093 0.023709
COMMNTY COLLEGE 0.040174 0.035755 0.035956 0.045990 0.046213
PALOS VERDES LIB 0.005854 0.005630 0.000000 0.000000 0.000000
FLOOD CONTROL 0.000000 0.000000 0.000000 0.000000 0.000000
METRO WATER DIST 0.003500 0.003500 0.003500 0.003500 0.003500
TOTAL 0.072817 0.068318 0.062653 0.072583 0.073422
TOTAL TAX RATE 1.072817 1.068318 1.062653 1.072583 1.073422
Source
2010-2015 County Assessor data, Avenu Insights & Analytics
2007-2009 data is provided from previously published CAFR's
City has no separate debt service rate, direct rate is 100% operating.
TRA 149 is represented for this report.
City of Rancho Palos Verdes
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
127
Percentage of Percentage of
Taxable Total City Taxable Taxable Total City Taxable
Taxpayer Value ($) Rank Value (%) Value ($) Rank Value (%)
Long Point Dev Llc 467,773,033 1 3.63% 143,871,679 1 1.60%
Gs Palos Verdes Llc 110,385,605 2 0.86%
Roic California Llc 67,768,800 3 0.53%
P V Victoria Apts Llc 53,106,736 4 0.41% 46,814,659 4 0.52%
6507 6510 Vista Catalina Apts 41,766,804 5 0.32%
Western Riviera Investors 32,933,894 6 0.26% 28,496,134 6 0.32%
Golden Cove Llc 30,788,239 7 0.24% 26,009,990 7 0.29%
Vh Property Corp 28,798,747 8 0.22% 62,442,705 3 0.69%
Ocean View Drive Inc. 27,516,360 9 0.21%
Belmont Village Rpv Lp 25,974,272 10 0.20% 22,285,368 9 0.25%
California Water Service Co 19,130,622 11 0.15% 8,042,490 14 0.09%
Johnson Eric C 17,948,735 12 0.14% 20,101,293 10 0.22%
Wlp Westmont Plaza Llc 15,945,078 13 0.12%
American Golf Inc. 13,265,274 14 0.10%
Green Hills Menorial Park 11,966,719 15 0.09%
Chang Jacqueline 9,584,001 16 0.07%
Maleenont Voravat 9,431,501 17 0.07%
Victoria Apts 8,804,865 18 0.07% 7,781,871 15
Thornecrest Llc 8,793,371 19 0.07%
Palos Verdes Terrace Ltd. 8,626,355 20 0.07% 7,623,193 16
Li Xin 8,459,000 21 0.07%
Xcx Bear Llc 8,223,029 22 0.06%
Bruning Fred W 8,196,504 23 0.06%
Amdan Investment Llc Lessee 8,080,864 24 0.06%
Aa Homes Llc 8,000,722 25 0.06%
Ppc Villas Rpv LLC 89,896,276 2 1.00%
Terraces Rancho Palos Verdes L 35,232,103 5 0.39%
Cox Com Inc. Orange 25,800,250 8 0.29%
Tridiamond LLC 13,343,138 11 0.15%
Ruffin Phillip G 11,964,600 12 0.13%
Gradney Stephen P 8,405,164 13 0.09%
Amdan Investment LLC Lessee 7,140,000 17 0.08%
Gerts Igor & Anna 7,059,800 18 0.08%
Raleigh Group One Llc 6,650,000 19 0.07%
Saitta Christopher L 6,570,900 20 0.07%
500 Silver Spur Road LLC 6,402,560 21 0.07%
3200 Pv Drive West LLC 6,309,582 22 0.07%
Desi Family Limited Partnershi 6,137,800 23 0.07%
Labarba James G Co Tr 6,101,725 24 0.07%
Imbach Scott A & Diane Y Trs 5,992,142 25 0.07%
Total Top 25 Taxpayers 1,051,269,130$ 8.15% 616,475,422$ 6.67%
Total Taxable Value 12,901,729,602$ 100.00% 9,010,781,799$ 100.00%
Source
Los Angeles County Assessor data, MuniServices, LLC / an Avenu Insights & Analytics Company
City of Rancho Palos Verdes
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2018-19 2009-10
128
Total Tax
Fiscal Levy for Percentage Collections in Percentage
Year Fiscal Year Amount of Levy Subsequent Years Amount of Levy
2010* 5,447 4,917 90.27% 8 4,925 90.42%
2011* 5,597 5,462 97.59% 0 5,462 97.59%
2012 5,777 5,656 97.91% 0 5,656 97.91%
2013 5,951 5,844 98.20% 0 5,844 98.20%
2014 6,287 6,193 98.50% 0 6,193 98.50%
2015 6,487 6,396 98.60% 0 6,396 98.60%
2016 6,813 6,716 98.58% 0 6,716 98.58%
2017 7,093 7,009 98.82% 0 7,009 98.82%
2018 7,481 7,389 98.77% 0 7,389 98.77%
2019 7,888 7,782 98.66% 0 7,782 98.66%
Source
County Assessor General Ledger, Avenu Insights & Analytics
* Includes 1% secured apportionment only
Fiscal Year of the Levy Total Collections to Date
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Collected within the
129
130
(THIS PAGE INTENTIONALLY LEFT BLANK)
2018-19 Assessed Valuation: $12,971,266,058
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2019 % Applicable (1)Debt 6/30/19
Metropolitan Water District $48,050,000 0.445% $213,823
Los Angeles Community College District 3,930,390,000 1.525% 59,938,448
Los Angeles Unified School District 10,106,450,000 0.182% 18,393,739
Palos Verdes Unified School District 58,573,511 47.087% 27,580,509
City of Rancho Palos Verdes 0 100% 0
Los Angeles County Regional Park and Open Space Assessment District 13,620,000 0.854% 116,315
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $106,242,833
OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations $2,153,701,630 0.854%$18,392,612
Los Angeles County Superintendent of Schools Certificates of Participation 5,827,868 0.854% 49,770
Los Angeles County Sanitation District No. 5 Authority 14,130,958 10.423% 1,472,870
Los Angeles County South Bay Cities Sanitation District Authority 2,408,615 4.103% 98,825
Los Angeles Unified School District Certificates of Participation 180,545,000 0.182% 328,592
TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $20,342,669
Less: Los Angeles Unified School District QZABs supported by investment fund 13,468
TOTAL NET OVERLAPPING GENERAL FUND DEBT $20,329,201
TOTAL DIRECT DEBT $0
TOTAL GROSS OVERLAPPING DEBT $126,585,502
TOTAL NET OVERLAPPING DEBT $126,572,034
GROSS COMBINED TOTAL DEBT $126,585,502
NET COMBINED TOTAL DEBT $126,572,034
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2018-19 Assessed Valuation:
Direct Debt 0.00%
Total Direct and Overlapping Tax and Assessment Debt 0.82%
Gross Combined Total Debt 0.98%
Net Combined Total Debt 0.98%
Source
2018-19 Avenu Insights & Analytics
City of Rancho Palos Verdes
Direct and Overlapping Governmental Activities Debt
Current Year
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by
determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
CITY OF RANCHO PALOS VERDES
131
2010 2011 2012 2011 2014
Debt Limit 1,351,617$ 1,382,850$ 1,420,256$ 1,382,850$ 1,533,583$
Total Net Debt applicable to limit - - - - -
Legal Debt Margin 1,351,617$ 1,382,850$ 1,420,256$ 1,382,850$ 1,533,583$
ble to the limit as a percentage of Debt Limi 0% 0% 0% 0% 0%
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
132
133
2015 2016 2017 2018 2019
Debt Limit 1,583,404$ 1,677,723$ 1,749,390$ 1,832,345$ 1,935,260$
Total Net Debt applicable to limit - - - - -
Legal Debt Margin 1,583,404$ 1,677,723$ 1,749,390$ 1,832,345$ 1,935,260$
Total Net Debt applicable to the limit as a
percentage of Debt Limit 0%0%0%0%0%
Total Taxable Value 12,901,730$
Debt Limit (15% of total taxable value)1,935,260
Debt applicable to limit -
Legal Debt Margin 1,935,260$
Cities have a maximum G.O. debt limit of 15% of the assessed valuation of all property within their boundaries.
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
Per Capita **Public
Fiscal Personal Personal Median School
Year Population (1) Income (2) Income (2) Age Enrollment
2009-10 42,642 2,250,346,266 52,773 44.9 11,900
2010-11 41,766 2,425,936,344 58,084 44.3 11,928
2011-12 41,897 2,561,016,971 61,127 47.6 11,840
2012-13 42,114 2,618,143,152 62,168 47.8 11,873
2013-14 42,358 2,564,205,491 60,537 47.6 11,700
2014-15 42,564 2,593,892,724 60,941 48.9 11,632
2015-16 43,041 2,461,988,241 57,201 49.6 11,499
2016-17 42,884 2,569,293,654 59,913 49.5 11,428
2017-18 42,723 2,722,513,349 63,725 49.3 11,346
2018-19 42,560 2,860,710,832 67,216 49.4 11,217
Source
Avenu Insights & Analytics
(1) Population Projections are provided by the California Department of Finance Projections.
**Student Enrollment reflects the total number of students enrolled in the Palos Verdes Unified School District. Other school districts within the City
are not included.
City of Rancho Palos Verdes
Demographic and Economic Statistics
Last Ten Fiscal Years
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.
(2) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.
134
County City City
Fiscal Unemployment Unemployment County Population
Year Rate (%) (3) Rate (%) (3) Population (1) (% of County)
2009-10 11.6% 4.0% 10,355,053 0.41%
2010-11 11.9% 4.1% 9,858,989 0.42%
2011-12 11.1% 3.8% 9,884,632 0.42%
2012-13 11.0% 3.7% 9,958,091 0.42%
2013-14 7.6% 2.5% 10,041,797 0.42%
2014-15 7.1% 3.4% 10,136,559 0.42%
2015-16 6.7% 3.2% 10,241,335 0.42%
2016-17 5.2% 2.5% 10,241,278 0.42%
2017-18 4.1% 3.4% 10,283,729 0.42%
2018-19 3.9% 3.3% 10,253,716 0.42%
Source
(1) Population Projections are provided by the California Department of Finance Projections.
(3) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
City of Rancho Palos Verdes
Demographic and Economic Statistics
Last Ten Fiscal Years
Avenu Insights & Analytics
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.
* The City Unemployment Rate during FY 2017-18 was corrected from 0.9% to 3.4%
135
Taxpayer Business Type Taxpayer Business Type
7-Eleven Food Store & Service Stations Service Stations 7-Eleven Food Store & Service Stations Service Stations
Alat Non-Store Retailers Los Verdes Golf Course Personal Services
Audio Visual Services Group Rental/Other Repair Asaka Japanese Cuisine Restaurants W/Onsale
Avenue Italy Restaurants W/Beer Carl's Jr. Restaurants Fast Food Restaurant
Blue Crab Steak & Seafood Restaurant Restaurants W/Onsale Centinela Feed & Pet Supplies Nursery
Centinela Feed & Pet Supplies Nursery Chevron Service Stations Service Stations
Chevron Service Stations Service Stations Coco's Bakery Restaurant Restaurants W/Onsale
El Pollo Loco Fast Food Restaurant CSK Auto Auto Supply Stores
Granvia Tomatillo Service Center Service Stations Daniel J.Jeldum Hardware Stores
Green Hills Memorial Park Mortuary Sales El Pollo Loco Fast Food Restaurant
Highridge Car Wash Service Stations G.S. Peeke Hardware Stores
IHOP Restaurants Fast Food Restaurant Good Night Mattress & Bedroom Home Furnishings
Jack In The Box Restaurants Fast Food Restaurant Granvia Tomatillo Service Center Service Stations
Los Verdes Golf Course Personal Services Green Hills Memorial Park Mortuary Sales
Marshall's Stores Family Apparel Highridge Car Wash Service Stations
O'Reilly Auto Parts Auto Supply Stores IHOP Restaurants Fast Food Restaurant
Ralph's Grocery Company Supermarkets Jack In The Box Restaurants Fast Food Restaurant
Smart & Final Grocery W/Beer/Wine Marshall's Stores Family Apparel
Southern California Discount Tire Auto Supply Stores Ralph's Grocery Company Supermarkets
Terranea Resort Hotel Food/Bar Sales Rolling Hills Plastics Light Industry
The Admiral Risty Restaurants W/Onsale Smart & Final Grocery W/Beer/Wine
Trader Joe's Supermarkets Southern California Discount Tire Auto Supply Stores
Trump National Golf Club Personal Services The Admiral Risty Restaurants W/Onsale
Western Tobacco Cigar Stores Trader Joe's Supermarkets
Whose Investment Restaurants W/Onsale Trump National Golf Club Personal Services
Source
Avenu Insights & Analytics
City of Rancho Palos Verdes
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2018-19 2009-10
136
2018-19 2015-16
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Palos Verdes Peninsula Unified School District 1,440 1 7.31% 1,432 1 7.50%
Terranea Resort Hotel* 1,273 2 6.46% 1036 2 5.42%
Belmont Corp Ltd ( Belmont Village of Rancho) 175 3 0.89% 140 6 0.73%
Canterbury 150 4 0.76% 143 5 0.75%
Trump National Golf Club* 143 5 0.73% 190 4 0.99%
Marymount College 133 6 0.68% 262 3 1.37%
City of Rancho Palos Verdes* 116 7 0.59%
Ralphs Store #720 105 8 0.53% 106 8 0.55%
Green Hills Memorial Park 81 9 0.41% 75 9 0.39%
American Golf Corp ( Los Verdes Golf Course) 71 10 0.36% 70 10 0.37%
Trader Joe's 110 7 0.58%
Subtotal of Principal Employers 3,687 18.72% 3,564 18.66%
Total City Employment (1) 19,700 19,100
Source
MuniServices, LLC / an Avenu Insights & Analytics Company
*Count includes both full and part time employees
Trader Joe's Store's (#57 & #233) choose to no longer participate
(1) Total City Labor Force is provided by EDD Labor Force Data
City of Rancho Palos Verdes
Principal Employers
Current Year and Three Years Ago
137
138
(THIS PAGE INTENTIONALLY LEFT BLANK)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function
General Government 53 54 52 53 54 60 62 62 64 60
Recreation Part-Time 16.5 18 16.5 16 22 25 29 29 30 29
Total 69.5 72 68.5 69 76 85 91 91 94 89
Source
City Budget documents and Payroll records
City of Rancho Palos Verdes
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
139
2010 2011 2012 2013 2014
Function
Administration
Employee Resignations 9 5 8 7 14
Workers Compensation Claims 5 3 3 3 1
Liability Claims 13 14 11 14 9
Budget Adjustments 21 17 11 24 15
Business Licenses Issued 1,629 1,891 1,294 1,868 1,997
Web Site Page Views (1) 2.9 mil 2.8mil 3.0mil 3.1mil 3.3mil
Public Safety
Part I Crime Rates (per 10,000 population) 110 143 131 149 107
Public Works
Solid Waste Diversion Rates (2) 4.2lbs/person/day 4.2lbs/person/day 4.2lbs/person/day 2.87lbs/person/day 2.84lbs/person/day
Pavement Rating 85 85 85 84 82
Parks and Recreation
Park Events 690 580 582 765 631
Class Meetings at Parks 2,398 2,313 1,587 1,202 1,233
Docent Led Nature Hikes 103 105 104 121 109
Community Development
Building Permits Processed 1,243 1,432 1,221 1,403 1,492
Plan Checks 154 161 161 268 264
Municipal Code Violations Closed 138 371 321 312 392
Source
City Departments
DNA: Data Not Available
(1): The City launched a new website and with it, the methodology used to count total page views was modified.
(2): A new system of measuring AB939 compliance was implemented in 2008 with the passage of SB1016. This changed the previous diversion
calculation method to the new disposal-based indicator - the per capita disposal rate. The per capita disposal target is based on the average of 50 percent of
generation in 2003 through 2006, expressed in terms of per capital disposal.
City of Rancho Palos Verdes
Operating Indicators by Function
Last Ten Fiscal Years
140
2015 2016 2017 2018 2019
Function
Administration
Employee Resignations 10 6 6 27 23
Workers Compensation Claims 32821
Liability Claims 11 28 6 3
Budget Adjustments 15 18 48 80
Business Licenses Issued 2,134 2,012 1,939 1,902 1,971
Web Site Page Views (1) 426,772 * 403,704 536,568 445,633 450,206
Public Safety
Part I Crime Rates (per 10,000 population) 134 106 Not available at this time 113 99
Public Works
Solid Waste Diversion Rates (2) 3.15lbs/person/day 3.08lbs/person/day 2.46lbs/person/day 2.46lbs/person/day 5.6lbs/person/day
Pavement Rating 82 84 84 84 89
Parks and Recreation
Park Events 639 810 829 1,281 1,122
Class Meetings at Parks 1,400 1,025 1,030 922 852
Docent Led Nature Hikes 103 94 108 113 104
Volunteer Events (3)35 61 46
Volunteers (3)764 1,806 1,095
Volunteer Hours (3)2,486 5,919 3,569
Open Space Mgmt. Public Contacts (3)23,101 33,306 29,973
Open Space Mgmt. Rules Enforced (3)1,367 1,925 1,262
Open Space Mgmt. Maintenance / Projects (3) 782 1,219 546
Community Development
Building Permits Processed 1,558 1,758 1,665 1,985 2,186
Plan Checks 255 289 289 292 288
Municipal Code Violations Closed 358 505 432 457 338
Source
City Departments
DNA: Data Not Available
(1): The City launched a new website and with it, the methodology used to count total page views was modified.
(3) Began tracking this indicator in 2017.
(2): A new system of measuring AB939 compliance was implemented in 2008 with the passage of SB1016. This changed the previous diversion calculation
method to the new disposal-based indicator - the per capita disposal rate. The per capita disposal target is based on the average of 50 percent of generation in 2003
through 2006, expressed in terms of per capital disposal.
City of Rancho Palos Verdes
Operating Indicators by Function
Last Ten Fiscal Years
141
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function
Administration
Computer Workstations 101 92 88 93 98 114 138 140 144 144
Public Works
Street Miles 143 143 144 141 141 149 149 149 149 150.1
Traffic Signals 16 16 18 15 15 15 15 15 15 15
Parks and Recreation
Parks 15 15 15 15 16 16 16 16 17 17
Community Development
Vehicles Used for Inspections 5 5 5 5 4 4 4 2 2 4
Source
City Capital Asset Records
Public safety services are contracted with other agencies. The City does not own any public safety capital assets.
Last Ten Fiscal Years
Capital Asset Statistics by Function
City of Rancho Palos Verdes
142