ACFR FY 2021-22CITY OF RANCHO PALOS VERDES
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30, 2022
C A L I F O R N I A
CITY OF RANCHO PALOS VERDES, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
PREPARED BY: FINANCE DEPARTMENT
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CITY OF RANCHO PALOS VERDES, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
DIRECTORY OF OFFICIALS ix
ORGANIZATION CHART x
GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
REPORTING xi
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENTS’ DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 19
STATEMENT OF ACTIVITIES 20
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
BALANCE SHEET 21
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 22
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES 23
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 24
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCE – BUDGET AND ACTUAL – GENERAL FUND 25
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCE – BUDGET AND ACTUAL – AMERICAN RESCUE PLAN ACT
SPECIAL REVENUE FUND 27
CITY OF RANCHO PALOS VERDES, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
PROPRIETARY FUNDS
STATEMENT OF NET POSITION 28
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET
POSITION 29
STATEMENT OF CASH FLOWS 30
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 31
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 32
NOTES TO FINANCIAL STATEMENTS 33
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY 67
SCHEDULE OF PENSION CONTRIBUTIONS 68
SUPPLEMENTARY INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
DESCRIPTION OF SPECIAL REVENUE FUNDS 69
COMBINING BALANCE SHEET 71
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 77
SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
SPECIAL REVENUE FUNDS
GAS TAX FUND 83
1972 ACT FUND 84
EL PRADO FUND 85
1911 ACT FUND 86
WASTE REDUCTION FUND 87
CITY OF RANCHO PALOS VERDES, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
AIR QUALITY MANAGEMENT FUND 88
PROPOSITION C FUND 89
PROPOSITION A FUND 90
PUBLIC SAFETY GRANTS FUND 91
MEASURE R FUND 92
MEASURE A FUND 93
MEASURE M FUND 94
MEASURE W FUND 95
ABALONE COVE SEWER ASSESSMENT FUND 96
DONOR-RESTRICTED CONTRIBUTIONS FUND 97
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND
FUND 98
COMMUNITY DEVELOPMENT BLOCK GRANT FUND 99
STATE GRANTS FUND 100
QUIMBY FUND 101
ENVIRONMENTAL EXCISE TAX FUND 102
CAPITAL PROJECTS FUND
LOW-MODERATE INCOME CAPITAL PROJECTS FUND 103
AFFORDABLE HOUSING IN-LIEU CAPITAL PROJECTS FUND 104
PERMANENT FUNDS
HABITAT RESTORATION FUND 105
SUBREGION ONE PERMANENT FUND 106
JOINT POWERS IMPROVEMENT AUTHORITY – ABALONE COVE
FUND 107
CAPITAL IMPROVEMENT MAJOR CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE 108
CITY OF RANCHO PALOS VERDES, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
STATISTICAL SECTION (UNAUDITED)
DESCRIPTION OF STATISTICAL SECTION CONTENTS 109
FINANCIAL TRENDS
NET POSITION BY COMPONENT 110
CHANGES IN NET POSITION 112
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE 115
FUND BALANCES OF GOVERNMENTAL FUNDS 116
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 118
REVENUE CAPACITY
ASSESSED VALUE OF TAXABLE PROPERTY 120
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 121
PROPERTY TAX RATES – DIRECT AND OVERLAPPING GOVERNMENTS 122
PRINCIPAL PROPERTY TAX PAYERS 124
PROPERTY TAX LEVIES AND COLLECTIONS 125
DEBT CAPACITY
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 127
LEGAL DEBT MARGIN INFORMATION 128
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 130
PRINCIPAL SALES TAX PRODUCERS 132
PRINCIPAL EMPLOYERS 133
OPERATING INFORMATION
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION 135
OPERATING INDICATORS BY FUNCTION 136
CAPITAL ASSET STATISTICS BY FUNCTION 138
INTRODUCTORY SECTION
(i)
April 10, 2023
Honorable Mayor and City Council
City of Rancho Palos Verdes
Rancho Palos Verdes, California
The Annual Comprehensive Financial Report (ACFR), formerly Comprehensive Annual
Financial Report (CAFR), of the City of Rancho Palos Verdes for the fiscal year ended
June 30, 2022, 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.
CliftonLarsonAllen 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 to the City's financial statements for the fiscal year ended June 30, 2022 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, 2022, are fairly presented in conformity with the Generally Accepted
Accounting Principles (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.
(ii)
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
incorporated September 7, 1973, and currently has land area of 13.6 square miles and a
population of about 41,000. 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 except for the Bikeways Special Revenue Fund. The level of budgetary control (that
(iii)
is, the level at which expenditures cannot legally exceed the appropriated amount) is
established at the department/function level within each fund. Formal budgetary
integration is employed as a management control device. The City also maintains an
encumbrance accounting system as one method of maintaining budgetary control. These
encumbrances lapse at year-end, and any unexpended balance is eligible to be carried
over to the following year's budget appropriations with City Council approval.
Adopted Budget to Actual Comparison
The City experienced an overall $7.8 million favorable budget variance in the General
fund for the fiscal year ended June 30, 2022. Post-pandemic recovery efforts led to an
economic upswing and favorable revenue variance of $6 million higher than budgeted.
Total expenditures also fared favorably and ended the year $1.6 million below budget.
Much of the positive expenditure variance is from a capital purchase that was not
completed by year-end and unspent budget due to unfilled vacant positions.
Financial Policies
The City Council has established Reserve policies that require the City to maintain a
minimum General Fund fund balance of at least 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.
As of June 30, 2022, the General Fund unrestricted fund balance of $29,454,065 exceeds
the minimum requirement of $12,944,402 (50% of $25,888,803 in General Fund annual
operating expenditures).
The City also maintains a $5 million reserve in the Capital Infrastructure Program (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 GAAP. 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.
(iv)
Significant Financial Events
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law, amending
Title VI of the Social Security Act to add Section 602 which establishes the Coronavirus
State Fiscal Recovery Fund (CSFR) and Section 603 which establishes the Coronavirus
Local Fiscal Recovery Fund (CLFR). ARPA is a relief package that provides fiscal aid of
$350 billion in emergency funding for state, local, territorial, and tribal governments. The
funding objectives defined by the Department of Treasury (DOT) are as follows:
Support urgent COVID-19 response efforts to continue to decrease spread of the
virus and bring the pandemic under control.
Replace lost revenue for eligible state, local, territorial, and tribal governments to
strengthen support for vital public services and help retain jobs.
Support immediate economic stabilization for households and businesses.
Address systemic public health and economic challenges that have contributed to
the inequal impact of the pandemic.
As defined in CLFR Section 603 (g)(5) of the Social Security Act, local governments that
are serving populations of less than 50,000 are categorized as “non-entitlement units
(NEUs)” of local government. For all NEUs, the DOT disburses the funds to the state
governments, then the state distributes the funds to cities based on the population of the
NEU. Local governments will receive funds in two batches, with 50% being distributed in
June 2021 and the balance to be distributed 12 months later.
The City of Rancho Palos services a population of less than 50,000, thus the City’s ARPA
allocation is disbursed by the State of California. Based on DOT’s formula calculation, the
City’s allocation is $9.9 million. On June 10, 2021, the City submitted its request for
ARPA’s allocations to the State of California Department of Finance (DOF).
Subsequently, on July 13 2021, the City received the first disbursement in the amount of
$4.97 million, and the second disbursement of $4.97 million on July 21, 2022.
In October 2021, the City Council approved 14 projects that are to be funded by the ARPA
funds. The approved categories of the projects are investment in capital infrastructure,
investment in information technology, and investment in protection of life and property.
And in September 2022, the City Council assigned the remaining allocation of $200,000
and interest earnings to the Ladera Linda Community Park Project.
Overall, since receiving the $9.9 million allocation of ARPA funds, the City Council has
committed 100% of the funds. Staff continue to monitor the interest earnings and will
report the status on a quarterly basis. Based on these commitments and once completed,
the utilization of ARPA funds will relieve the General Fund for needed one-time costs and
deferred maintenance projects and generate available funds in the CIP that can be used
for future projects and initiatives.
(v)
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 Financial Model (Model). Previously, the
financial model presented a five-year outlook and was later expanded to ten years
beginning in FY 2021-22. The Model establishes the foundation for guiding policy and
making financial decisions, considering any forecasted challenges and opportunities
before they arise. This Model allows for the creation of baseline and alternative revenue
and spending forecasts, including historic and projected annual periods for the next ten
years. The Model also allows for testing the impact of assumptions and proposed
initiatives on projected budget gaps and fund balances.
To ensure a more accurate forecast, the Finance Department actively updates the
planning tools with the most current information available. Accordingly, any substantial
changes of the assumptions will be presented to the City Council.
MAJOR INITIATIVES
The City's staff, following specific directives of the City Council and the City Manager,
have been involved in a variety of projects throughout the year. Here are some projects
to highlight the City’s commitment to ensuring that its citizens are able to live and work in
a thriving environment.
Adopted the City’s first Legislative Platform outlining the policy positions of the City
Council on current issues which directly or indirectly impact the City.
Disseminated position letters for the City on various bills and legislative issues,
including dozens of bills during the 2021-2022 Legislative Session, and tracking
over 100 bills with potential impact on the City.
Negotiated ground lease amendments with telecommunications providers,
resulting in increased rents paid to the City.
Took the offices of Senator Dianne Feinstein and Congressman Ted Lieu on tours
of the Portuguese Bend Landslide to familiarize them with the urgency of the issue.
Submitted requests for congressionally directed spending for the Portuguese Bend
Landslide Remediation Project, with Senator Feinstein subsequently requesting
$2 million in the Homeland Security Appropriations Bill be allocated to a portion of
the project.
Represented the City at meetings with Senator Feinstein’s office and the EPA
regarding the recently rediscovered DDT dumping site off the coast and advocated
for an assessment of contamination and possible solutions for remediation.
RPV named 9th Safest City in California by SafeWise.
(vi)
Developed a strategy for Peninsula-wide mass evacuation plans, as well as
coordinated the drafting and solicitation of an RFP for an independent third-party
consultant to develop a comprehensive emergency operations evacuation
"playbook"
Implemented City’s Pension Guidelines adopted by the City Council by setting
aside $640,000 to mitigate future increases to the City’s Unfunded Accrued
Liability (UAL).
Implemented the required Governmental Accounting Standards Board (GASB)
Statement No. 87, Leases.
Continued to expand the Financial Model during the FY 2022-23 budget process
by utilizing a sensitivity analysis to enhance and guide the 10-year financial
outlook.
Scored 91.23 out of 100 points and received a low-risk designation for FY 2019-
20 from the State Auditor’s report on the Fiscal Health of California Cities.
The City continued to receive a Certificate of Achievement for Excellence in
Financial Reporting for its Comprehensive Annual Financial Report for FY 2020-
2021, awarded by the Government Finance Officers Association (GFOA).
Pursued cost-effective and achievable strategies by securing an $8 million loan
that is payable over 10 years to fund the Ladera Linda Community Park Project.
Entered into a cooperative agreement with Caltrans for design and construction of
a right-turn lane on Western Avenue at Delasonde Drive.
Completed three Landslide GPS Surveys.
Maintained the bio-filtration swales contained within the Hawthorne Blvd medians
between Crest Road and Via Rivera.
Maintained collector screens on all City-owned catch basins.
Completed traffic studies for four school sites and recommended mitigation
measures to address speeding and other concerns.
Completed a traffic study on Hawthorne Boulevard from Crest Road to Palos
Verdes Drive West and recommended mitigation measures to address speeding
and other concerns.
Completed installation of a traffic signal at Hawthorne Blvd and Via Rivera.
Repainted stencils at 1,110 catch basins to educate the public on how catch basins
contribute to keeping the Pacific Ocean clean.
Started construction on the Ladera Linda Community Park.
Implemented a program to divert organic waste from the trash stream (to comply
with Senate Bill 1383).
Adopted Code Amendments related to the City’s Sign Code and Fence, Wall &
Hedges regulations.
Prepared the City’s draft Housing Element for the 2021-2029 Housing Cycle and
submitted associated documents to the Housing & Community Development
Department for review.
Timely submittals of the City’s Annual General Plan Update Report as well as the
Housing Element Annual Progress Report to the Governor’s Office of Planning and
Research and the California Department of Housing and Community
Development.
(vii)
Conducted a City Tour with representatives from the California Department of
Housing and Community Development.
Initiated work on the preparation of a mixed use-overlay zoning district within the
City’s commercial zones in support of the City’s 2021-2029 Housing Element.
Issued multi-family smoke-free informational materials to encourage property
owners and homeowner associations to voluntarily implement smoke-free policies
in multi-family housing units.
Continued to proactively coordinate informative and educational neighborhood
coyote outreach City wide including a Wildlife Watch Forum and informational
bulletin.
Monitored the City’s Peafowl Trapping Program on safely capturing and relocating
peafowl to a permanent environment.
Transmitted proposals to the FAA and to Los Angeles World Airports to further
reduce aircraft noise above and near RPV.
Implemented Forrestal parking plan
Successfully organized City special events including concerts in the parks, movies
in the park, and the first annual holiday tree lighting and skating rink.
Expanded REACH program in-person events
Managed and coordinated Preserve and NCCP/HCP
Assisted with the Civic Center Master Plan development
OTHER INFORMATION
Independent Audit
The City requires an annual audit by independent certified public accountants. The
accounting firm of CliftonLarsonAllen 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, 2022,
the City expended over $750,000 on Federal financial assistance programs in the amount
of $1.9 million; and therefore, a Single Audit is required.
(viii)
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 ACFR for the fiscal year ended June 30, 2021. This was the
28th 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 ACFR. 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 ACFR continues to meet the Certificate of Achievement Program’s requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments
The preparation of this report would not have been possible without the dedication of the
entire staff of the Finance Department. I would also like to acknowledge the assistance
of the City’s auditors, CliftonLarsonAllen LLP, and the contributions of all the departments
by providing data necessary to prepare the City’s FY 2021-22 ACFR.
In closing, I want to thank the City Council and City Manager for their continued leadership
in directing the City to achieve a sound fiscal position over the last several years. We look
forward to maintaining this success in the future under the leadership of the City Council
and City Manager.
Respectfully submitted,
Trang Nguyen
Director of Finance
(ix)
Annual Comprehensive Financial Report
Year Ended June 30, 2022
FY 2021-22 CITY OFFICIALS
CITY STAFF
City Manager
Ara Mihranian, AICP
Deputy City Manager………………………………….…………..……..Karina Banales
Director of Finance…………………………….………………...............Trang Nguyen
Director of Public Works………………………………………….……Ramzi Awwad
Director of Recreation and Parks…...............................................Cory Linder
Interim Director of Community Development…………....…...Octavio Silva
Residents of Rancho Palos Verdes
City Council
Planning Commision Civic Center
Advisory Committee
Traffic Safety
Committee
Emergency
Preparedness
Committee
Finance Advisory
Committee
Infrastructure
Management
Advisory Committee
City Manager City Attorney
Deputy City Manager
Community
Development Finance Public Works Recreation &
Parks City Clerk Information
Technology
Human
Resources Public Safety
(x)
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rancho Palos Verdes
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
(xi)
(xii)
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FINANCIAL SECTION
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(1)
INDEPENDENT AUDITORS’ REPORT
City Council Members
City of Rancho Palos Verdes
Rancho Palos Verdes, California
Report on the Audit of Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental 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, 2022, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the City, as of June 30, 2022, and the respective changes in financial position, and,
where applicable, cash flows thereof and the respective budgetary comparisons for the General Fund, and
American Rescue Plan Act special revenue fund for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matters
Change in Accounting Principle
As described in Note 10 to the financial statements, effective July 1, 2021, the City adopted new accounting
guidance, Statement of Governmental Accounting Standards Board (GASB Statement) No. 87, Leases. Our
opinions are not modified with respect to this matter.
City Council Members
City of Rancho Palos Verdes
(2)
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes
our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
Obtain an understanding of internal control relevant to the audit 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 City of Rancho Palos Verdes’ internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about City of Rancho Palos Verdes’ ability to continue as a going concern for
a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control related matters
that we identified during the audit.
City Council Members
City of Rancho Palos Verdes
(3)
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, be presented to supplement the financial statements. Such
information is the responsibility of management and, although not a part of the financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information 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 financial
statements, and other knowledge we obtained during our audit of the 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Rancho Palos Verdes’ basic financial statements. The combining statements and
individual fund schedules are presented for purposes of additional analysis and are not a required part of
the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The 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 GAAS. In our
opinion, the individual nonmajor fund financial statements and schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and
our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
City Council Members
City of Rancho Palos Verdes
(4)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
April 10, 2023, 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 solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of the City’s 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.
CliftonLarsonAllen LLP
Irvine, California
April 10, 2023
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(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, 2022. We encourage readers to
consider the information presented here in conjunction with additional information that we
have furnished in our Letter of Transmittal, which can be found on pages i-viii 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, 2022, by $224.3 million (Net Position). Of this amount, $52.8
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 $4.5 million from the prior year from the
Governmental activities primarily due to the significant shift in the economy that
took place during FY 2021-22 and led to a favorable return toward historical
figures.
As of June 30, 2022, the City’s Governmental Funds reported combined ending
Fund Balances of $84.3 million, an increase of $19.2 million in comparison with
the prior year. This increase is a combination of higher inflow of revenues and from
the debt loan proceeds for the Ladera Linda Community Park Project.
At the end of the current fiscal year, the General Fund reported an increase in fund
balance in the amount of $5.6 million or 22%. The increase is due primarily to
higher inflow of revenues over expenditures.
As of June 30, 2022, the General Fund unrestricted fund balance of $29,454,065
exceeds the City Council’s reserve policy minimum requirement of $12,944,402
(50% of $25,888,803 in General Fund annual operating expenditures).
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(6)
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 no longer has business-type activities.
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.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(7)
The Government-Wide Financial Statements can be found on pages 19-20 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. The Governmental
Fund Financial Statements can be found on pages 21-24.
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 29 individual Governmental Funds during
the Fiscal Year ended June 30, 2022. 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, American
Rescue Plan Act Fund, and the Capital Improvements Fund are considered to be major
funds. Data from the other 26 Governmental Funds are combined into a single,
aggregated presentation. Individual fund data for each of these Other Governmental
Funds is provided in the form of combining statements elsewhere in this report.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(8)
The City of Rancho Palos Verdes adopts an annual appropriated budget for each of its
Governmental Funds except for the Bikeways Special Revenue Fund. A budgetary
comparison statement has been provided for each Governmental Funds to demonstrate
compliance with this budget.
Proprietary Funds
The City of Rancho Palos Verdes maintains one type of Proprietary Fund. Internal Service
Funds are an accounting device used to accumulate and allocate costs internally among
the City’s various functions. The City uses an Internal Service Fund 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.
The Proprietary Fund Financial Statements can be found on pages 28-30 of this report.
The Proprietary Fund Financial Statements provide separate information for the City’s
Internal Service Fund. The Internal Service Fund is combined and presented with the
City’s governmental activities in the government-wide financial statements.
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.
The Fiduciary Fund statements can be found on pages 31-32 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the
data provided in the Government-Wide and Fund Financial Statements. The notes to the
financial statements can be found on pages 33-65 of this report.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(9)
Other Information
The combining statements referred to earlier in connection with Other Governmental
Funds and Internal Service Funds are presented as Supplementary Information.
Combining and individual fund statements and schedules can be found on pages 69 -
108 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 $224.3
million on June 30, 2022. By far, the largest portion of the City’s Net Position of $147.5
million or 66% reflects its net investment in Capital Assets (e.g. Land, Infrastructure,
Buildings, and Equipment). The City uses these Capital Assets to provide services to its
citizens; consequently, these assets are not available for future spending.
Summary of Net Position
2022 2021
Current and other assets 102,573,358$ 81,794,941$
Capital assets 148,975,339 154,129,751
Total assets 251,548,697 235,924,692
Deferred outflows of resources 2,452,918 2,483,234
Long-term liabilities outstanding 15,150,174 13,157,805
Other liabilities 9,863,780 5,282,098
Total liabilities 25,013,954 18,439,903
Deferred inflows of resources 7,728,187 208,614
Net Investment in capital assets 147,500,875 153,568,014
Restricted 23,913,654 23,206,283
Unrestricted 52,844,945 42,985,112
Total net position 224,259,474$ 219,759,409$
Governmental
Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(10)
A portion of the City’s Net Position of $23.9 million or 10%, represents resources subject
to external restrictions. The remaining balance of Unrestricted Net Position of
$52.9 million or 24 % may be used to meet the government’s ongoing obligations to its
citizens and creditors.
Compared to the prior year, the total current and other assets increased by $20.8 million
or 25%. The increase is primarily due to higher inflow of revenues, and from the unspent
loan proceeds for the Ladera Linda Community Park Project.
As a result of the new loan, the long-term liabilities outstanding increased by $2.0 million
or 15% over the prior year. Additionally, other liabilities increased by $4.6 million or 87%
over prior year mainly from timing disbursements of the City’s allocations from the
American Rescue Plan Act.
Statement of Activities
2022 2021
Program revenues:
Charges for services 5,293,680$ 3,579,336$
Operating contributions and grants 6,738,167 5,086,905
Capital contributions and grants 1,731,518 1,253,501
General revenues:
Property taxes 16,638,046 15,966,164
Other taxes 14,490,115 10,116,608
Other 452,143 1,511,404
Total revenues 45,343,669 37,513,918
Administration 9,183,326$ 8,476,055$
Public safety 7,293,294 7,250,780
Public works 17,360,287 15,885,356
Community development 3,093,831 2,623,915
Parks and recreation 3,876,716 2,978,922
Interest Expense 36,150 -
Total expenses 40,843,604 37,215,028
(Decrease) / Increase in net position 4,500,065 298,890
Net position - beginning of fiscal year 219,759,409 219,460,519
Net position - end of fiscal year 224,259,474$ 219,759,409$
Governmental
Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(11)
Governmental Activities
As illustrated in the chart above, the City’s Net Position in Governmental Activities
increased by $4.5 million over the prior fiscal year. The increase is mainly from the
ongoing solid recovery of the City’s general revenues since the COVID-19 pandemic.
Overall, government-wide revenues for the fiscal year ended June 30, 2022, increased
by $7.8 million. Of the increased amount, $0.5 million was from the program revenues in
grants and $4.0 million was from general revenues.
The percentages of each category for the sources of revenues are illustrated in the
following chart.
Sources of Revenue - Governmental Activities
Charges for Services
11%
Operating Contributions
& Grants
15%
Capital Contributions & Grants
4%
Property Taxes
37%
Other Taxes
32%
Other
1%
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(12)
The government-wide expenses for the fiscal year ended June 30, 2022 increased by
$3.6 million from the prior year. The increased amount compared to the prior year is due
to the increased activities in maintenance, parks, recreation, and personnel costs in
accordance with the labor contract. The percentages of each function for the expenses
are illustrated in the following chart.
Expenses by Function – Governmental Activities
Administration
22%
Public Safety
18%Public Works
43%
Community
Development
8%
Parks and
Recreation
9%
Interest …
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(13)
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 $84.3 million, an increase of $19.2 million in comparison to the
prior year. Approximately $80.9 million or 96% of the combined ending Fund Balances
constitutes spendable fund balance. The remainder of the combined ending Fund
Balances are non-spendable either 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 8 on pages 51-52 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 $29.5
million, while total Fund Balance reached to $31.4 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 96% of total General Fund uses, while total Fund Balance represents
98% of the same amount.
The fund balance of the City’s General Fund increased by $5.6 million from the prior year.
The increase is due to the higher inflow of revenues and delayed projects that were not
completed at year-end. Additional details on General Fund are provided in the General
Fund Highlights.
At the end of the fiscal year, the American Rescue Plan Act (ARPA) has a deficit fund
balance of $0.03 million mainly due to the fund’s investment loss.
The Capital Improvements Capital Projects Fund ended the year with an increase of
$11.7 million of the fund balance from the prior year. The majority of the increase is largely
from the loan proceeds of $8 million for the Ladera Linda Community Park Project and
from the budgeted capital outlay projects that were not completed by year-end. These
projects are primarily from the residential street rehabilitation program, Civic Center
Project, and Ladera Linda Community Park Project.
Financial Analysis of Proprietary Funds
The City’s Proprietary Funds provide the same type of information found in the
Government-Wide Financial Statements, but in more detail.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(14)
The Net Position of the Internal Service Funds at the end of the fiscal year amounted to
$2.9 million, an increase to the Net Position by $0.2 million. The increased amount is due
the increase in funding received for the replacement of computers and hardware,
equipment, and vehicles.
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 $35.9 million and $25.9 million of expenditures. When
including net transfers out of $4.5 million, there is a positive variance of just almost $5.5
million (revenues to expenditures).
The economic upswing and strong rebound in General Fund revenues experienced in in
FY 2021-22 led to historical revenue growth.
Revenue Highlights
Taxes
Taxes include property tax, transient occupancy tax (TOT), sales tax, franchise tax,
utility users tax, and other miscellaneous taxes. Tax revenues ended the year at
$31 million, an increase of $4.6 million, or 17% over the final budget of $26 million.
The increase in revenues was partly due to property tax revenue; the City’s largest
revenue source ending the year at $16.6 million. A strong housing market and
abundant sales activity led to higher than expected revenue growth in this category.
Additionally, elevated demand for leisure activities lead to an increase in TOT
revenue. As a result of lagging demand and higher prices, TOT revenues received
were the highest amount on record.
Licenses and Permits
This category ended the year at $3.3 million, $1.3 million, or 60%, above the final
budget of $2.1 million. Revenue growth is attributed to the ongoing demand for
Building & Safety, Planning & Zoning, and Geology Permits delayed by the
pandemic. An increase in the master fee schedule also contributed to growth.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(15)
Fines and Forfeitures
Revenues totaled $517,637, which is $190,437 or 58% over the final budget of
$327,200. The two primary contributors to this increase in revenue were Parking
Lot Fees and Traffic Tickets.
Expenditure Highlights
Salaries & Benefits
This category ended the year $1.6 million or 14% under the final budget of $12
million. This is due to unfilled vacant positions.
Professional & Technical Services
This category came in approximately $708,412 or 21% under the final budget
of $3.4 million. This underrun is due to delayed services and planned services
that were not completed due to staffing shortages.
CAPITAL ASSET AND DEBT ADMINISTRATION
The City’s investment in Capital Assets for its Governmental activities as of June 30,
2022, amounts to $149.0 million (net of accumulated depreciation). This investment in
capital assets includes land, buildings, park improvements, roadways, sewer, storm
drains, vehicles, computer equipment, right-to-use leased equipment, furniture, other
equipment, and construction in progress.
Major capital asset events during the current fiscal year included the following:
Depreciation/ amortization of $6.9 million was recorded for the City’s Capital
Assets.
A total of $1.5 million of construction in progress was added primarily from the
Ladera Linda Community Park Project.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(16)
City of Rancho Palos Verdes Capital Assets (Net of Depreciation)
Additional information on the City’s Capital Assets can be found in Note 5 on pages 48-
49 of this report.
Long-term liabilities. At the end of the current Fiscal Year, the City of Rancho Palos
Verdes had total long-term liabilities outstanding of $8,513,246. Of this amount $507,647
is for the Employee Compensated Absences, $5,599 is for leases, and $8 million is the
loan for the Ladera Linda Community Park Project.
2022 2021
Capital assets not being depreciated
Land 43,543,382$ 43,543,382$
Construction in progress 1,637,230 2,742,642
Total capital assets not being depreciated 45,180,612 46,286,024
Capital assets being depreciated, net
Buildings 6,394,667 6,660,834
Vehicles 56,543 101,128
Computer equipment 161,314 1
Equipment - water quality - -
Furniture, fixtures and equipment 106,180 126,933
Right-to-use Leased Assets:
Equipment 5,544 13,576
Infrastructure
Roadway system 50,244,687 52,709,738
Sewer system 3,576,481 4,030,329
Storm drain system 8,342,131 8,157,424
Storm drain system - water quality 30,287,975 31,120,549
Park system 4,619,205 4,936,791
Total capital assets being depreciated, net 103,794,727 107,857,303
Capital Assets, net 148,975,339$ 154,143,327$
Governmental
Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(17)
City of Rancho Palos Verdes Outstanding Long-term Liabilities
At the fiscal year ended June 30, 2022, the City’s total outstanding debt increased by
$7,976,583 or 1,486%. Additional information on the City’s long-term liabilities can be
found in Note 7 on pages 50-51 of this report.
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 $2,181,192,000.
ECONOMIC FACTORS AND NEXT YEAR BUDGETS AND RATES
The annual budget is developed in conformity with the City’s long tradition of fiscal
responsibility. Along with newly established and current City Council Goals, public safety
and infrastructure projects remain a top priority alongside providing the highest possible
service levels to the community. The City maintains a healthy financial outlook and
supports the General Fund operations with only recurring tax revenue. Roughly 46% of
the General Fund revenue came from property tax during FY 2021-22. Property tax is
expected to continue to account for 46% of general fund revenue during FY 2022-23. This
stable revenue base provides the City with a steady and predictable revenue inflow year
over year.
For the upcoming fiscal year, total property values increased by $278 million based on
the maximum CPI of 2%. Moreover, properties sold between January and December
2021 provided an additional $517 million in property value. Given these factors, and a
proposition 8 recapture total of $54 million, staff anticipates a 5.9% increase in overall
property value. In total, property tax revenues are projected to grow to slightly over $16.4
million, or 4.2%, in FY 2022-23.
2022 2021
Employee compensated absences 507,647 523,087
Leases Liability*5,599 13,576
Ladera Linda Community Park Project 8,000,000 ‐
Total 8,513,246$ 536,663$
*The beginning balance has been restated to add lease liabilities in accordance with
the implementation of GASB Statement No. 87, Leases.
Governmental
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(18)
A return to economic normalcy led towards historical growth in the fiscal year ended
June 30, 2022. Growth is expected to remain stable throughout the FY 2022-23 fiscal, but
signs of a slowing economy are likely to become more apparent. Ultimately, 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.
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
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(19)
Governmental
Activities
ASSETS
CURRENT ASSETS
Cash and Investments 83,030,275$
Restricted Cash 7,949,939
Receivables:
Taxes 2,821,411
Interest 108,310
Other 706,585
Leases 70,394
Inventory 35,159
Prepaid Items 1,427,311
Total Current Assets 96,149,384
NONCURRENT ASSETS
Leases Receivable 659,716
Notes Receivable 8,764,258
Receivable from Successor Agency 10,540,023
Allowance for Successor Agency Receivable (10,540,023)
Capital Assets:
Not Being Depreciated/Amortized 45,180,612
Being Depreciated/Amortized 103,794,727
Total Noncurrent Assets 158,399,313
Total Assets 254,548,697
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 2,452,918
LIABILITIES
CURRENT LIABILITIES
Accounts Payable and Accrued Liabilities 4,067,186
Interest Payable 35,967
Retentions Payable 133,811
Unearned Revenue 3,523,683
Deposits Payable 989,051
Current Portion of Noncurrent Liabilities 1,114,082
Total Current Liabilities 9,863,780
NONCURRENT LIABILITIES
Due Beyond One Year 7,399,164
Net Pension Liability 7,751,010
Total Noncurrent Liabilities 15,150,174
Total Liabilities 25,013,954
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Leases 708,009
Deferred Inflows Related to Pensions 7,020,178
Total Deferred Inflows of Resources 7,728,187
NET POSITION
Net Investment in Capital Assets 147,500,875
Restricted for:
Housing and Community Development 9,975,095
Transportation 7,140,221
Public Works 3,272,333
Parks and Recreation 1,671,462
Public Safety 104,543
Nonexpendable Endowment Principal 1,750,000
Unrestricted 52,844,945
Total Net Position 224,259,474$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(20)
Net Revenue
(Expense) and
Program Revenues Changes in
Operating Capital Net Position
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Governmental Activities:
Administration 9,183,326$ 935,625$ 1,773,696$ -$ (6,474,005)$
Public Safety 7,293,294 231,645 160,337 - (6,901,312)
Public Works 17,360,287 215,745 4,804,134 1,731,518 (10,608,890)
Parks and Recreation 3,876,716 739,233 - - (3,137,483)
Community Development 3,093,831 3,171,432 - - 77,601
Interest Expense 36,150 - - - (36,150)
Total Governmental Activities/
Primary Government 40,843,604$ 5,293,680$ 6,738,167$ 1,731,518$ (27,080,239)
General Revenues:
Taxes:
Property Taxes 16,638,046
Transient Occupancy Tax 6,170,132
Franchise Tax 2,278,003
Utility User Tax 2,525,992
Other Taxes 733,545
Unrestricted Intergovernmental
Revenue - Shared Sales Tax 2,782,443
Investment Income (Loss)(430,668)
Unrestricted Grants, Contributions,
and Other Revenues 882,811
Total General Revenues 31,580,304
CHANGE IN NET POSITION 4,500,065
Net Position - Beginning of Year 219,759,409
NET POSITION - END OF YEAR 224,259,474$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(21)
Special Capital
Revenue Projects Other Total
American Rescue Capital Governmental Governmental
General Plan Act Improvements Funds Funds
ASSETS
Cash and Investments 30,547,036$ 4,482,873$ 30,247,286$ 14,921,213$ 80,198,408$
Restricted Cash - - 7,949,939 - 7,949,939
Receivables:
Taxes 2,498,590 - - 322,821 2,821,411
Interest 38,239 5,378 43,259 18,119 104,995
Leases - Current 70,394 - - - 70,394
Other 118,773 - - 587,812 706,585
Due from Other Funds 126,685 - - - 126,685
Inventory 35,159 - - - 35,159
Prepaid Items 1,427,311 - - - 1,427,311
Leases Receivable - Noncurrent 659,716 - - - 659,716
Receivable from Successor Agency 10,540,023 - - - 10,540,023
Allowance for Successor Agency
Receivable (10,540,023) - - - (10,540,023)
Total Assets 35,521,903$ 4,488,251$ 38,240,484$ 15,849,965$ 94,100,603$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable and Accrued
Liabilities 2,081,712$ 1,295,801$ 79,595$ 610,078$ 4,067,186$
Due to Other Funds - - - 126,685 126,685
Retentions Payable 19,576 58,711 45,859 9,665 133,811
Unearned Revenue 359,947 3,163,736 - - 3,523,683
Deposits Payable 989,051 - - - 989,051
Total Liabilities 3,450,286 4,518,248 125,454 746,428 8,840,416
DEFERRED INFLOWS OF RESOURCES
Leases 708,009 - - - 708,009
Unavailable Revenue - - - 248,803 248,803
Total Deferred Inflows of Resources 708,009 - - 248,803 956,812
FUND BALANCES (DEFICITS)
Nonspendable:
Endowment Principal - - - 1,750,000 1,750,000
Prepaid Items 1,427,311 - - - 1,427,311
Inventory 35,159 - - - 35,159
Restricted - - 7,949,939 13,195,901 21,145,840
Committed 447,073 - 4,455,087 - 4,902,160
Assigned - - 25,710,004 - 25,710,004
Unassigned 29,454,065 (29,997) - (91,167) 29,332,901
Total Fund Balances (Deficits) 31,363,608 (29,997) 38,115,030 14,854,734 84,303,375
Total Liabilities, Deferred
Inflows, and Fund Balances 35,521,903$ 4,488,251$ 38,240,484$ 15,849,965$ 94,100,603$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(22)
Fund Balances - Total Governmental Funds 84,303,375$
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.148,890,287
Receivables not available to pay for current period expenditures are reported as
unavailable revenue in the financial statements. 248,803
Long-term notes receivable are not current available resources and, therefore, do
not affect the governmental fund balance.8,764,258
Long-term liabilities are not due and payable in the current period and, therefore, are
not reported in the governmental funds:
Compensated Absences (507,647)
Loan Payable (8,000,000)
Leases Payable (5,599)
Accrued interest payable for certain long-term liabilities of governmental activities
is not reported in the governmental funds (35,967)
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 (7,751,010)
Deferred Outflows of Resources Related to Pensions 2,452,918
Deferred Inflows of Resources Related to Pensions (7,020,178)
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. 2,920,234
Net Position of Governmental Activities 224,259,474$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(23)
Special Capital
Revenue Projects Other Total
American Rescue Capital Governmental Governmental
General Plan Act Improvements Funds Funds
REVENUES
Taxes 30,962,923$ -$ -$ 896,204$ 31,859,127$
Licenses and Permits 3,338,327 - - - 3,338,327
Revenue from Other Agencies - 1,803,693 - 6,869,147 8,672,840
Charges for Services 28,813 - - 200,137 228,950
Fines and Forfeitures 517,637 - - - 517,637
Investment Income (Loss)370,979 (29,997) (300,738) (107,664) (67,420)
Other Revenues 709,474 - - 148,246 857,720
Total Revenues 35,928,153 1,773,696 (300,738) 8,006,070 45,407,181
EXPENDITURES
Current:
Administration 5,315,792 - - - 5,315,792
Public Safety 7,293,294 - - - 7,293,294
Public Works 4,934,104 - - 5,564,335 10,498,439
Parks and Recreation 3,149,625 - - 11,857 3,161,482
Community Development 3,093,831 - - - 3,093,831
Non-Departmental 2,093,997 - - - 2,093,997
Capital Outlay - 1,803,693 674,797 298,950 2,777,440
Debt Service:
Principal 7,977 - - - 7,977
Interest and Fiscal Charges 183 - - - 183
Total Expenditures 25,888,803 1,803,693 674,797 5,875,142 34,242,435
Excess (Deficiency) of
Revenues Over (Under)
Expenditures 10,039,350 (29,997) (975,535) 2,130,928 11,164,746
OTHER FINANCING SOURCES (USES)
Loan Proceeds - - 8,000,000 - 8,000,000
Transfers In 310,000 - 4,699,515 85,000 5,094,515
Transfers Out (4,784,515) - - (310,000) (5,094,515)
Total Other Financing
Sources (Uses)(4,474,515) - 12,699,515 (225,000) 8,000,000
NET CHANGE IN FUND BALANCES 5,564,835 (29,997) 11,723,980 1,905,928 19,164,746
Fund Balances - Beginning of Year 25,798,773 - 26,391,050 12,948,806 65,138,629
FUND BALANCES - END OF YEAR 31,363,608$ (29,997)$ 38,115,030$ 14,854,734$ 84,303,375$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO
THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(24)
Fund Balances - Total Governmental Funds 19,164,746$
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 1,673,463
Depreciation/Amortization Expense (6,776,113)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.(218,513)
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.175,116
The issuance of long-term liabilities provides current financial resources to
governmental funds, while repayment of the principal of long-term debt consumes
the current financial resources of the governmental funds. Issuance of debt increases
long-term liabilities and the repayment of principal reduces long-term liabilities in the
Statement of Net Position:
Loan Proceeds (8,000,000)
Principal Payments on Leases Liability 7,977
Certain 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. Such expenses relate to:
Net change in compensated absences 15,440
Net change in accrued interest payable (35,967)
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.(1,667,246)
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.161,162
Change in Net Position of Governmental Activities 4,500,065$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(25)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Taxes 26,391,100$ 26,391,100$ 30,962,923$ 4,571,823$
Licenses and Permits 2,083,100 2,083,100 3,338,327 1,255,227
Revenue from Other Agencies - - - -
Charges for Services 11,900 11,900 28,813 16,913
Fines and Forfeitures 327,200 327,200 517,637 190,437
Investment Income (Loss)531,700 531,700 370,979 (160,721)
Other Revenues 610,700 630,700 709,474 78,774
Total Revenues 29,955,700 29,975,700 35,928,153 5,952,453
EXPENDITURES
Administration:
City Council 110,700 110,700 96,177 14,523
City Manager 709,000 720,000 733,899 (13,899)
Legal Services 955,000 934,100 915,444 18,656
Community Outreach 69,800 69,800 75,827 (6,027)
City Clerk 529,800 432,300 417,867 14,433
RPV TV 123,100 185,100 183,236 1,864
Personnel 335,200 385,200 371,026 14,174
Finance 1,571,600 1,346,000 1,280,029 65,971
Information Technology - Data 1,055,424 981,784 920,619 61,165
Information Technology - Voice 126,000 103,500 101,672 1,828
Emergency Preparedness 202,400 85,400 47,069 38,331
Emergency Operations - - 172,927 (172,927)
Total Administration 5,788,024 5,353,884 5,315,792 38,092
Public Safety:
Sheriff 7,150,200 6,994,685 6,985,320 9,365
Special Programs 337,600 402,115 307,974 94,141
Total Public Safety 7,487,800 7,396,800 7,293,294 103,506
Public Works:
Public Works Administration 2,725,900 2,200,735 2,075,027 125,708
Traffic Management 935,500 839,590 747,373 92,217
Storm Water Quality 1,000 40,881 15,942 24,939
Building Maintenance 306,000 477,154 502,449 (25,295)
Park/Trail/Open Space Maintenance 1,005,500 1,132,924 1,233,318 (100,394)
Street Landscape Maintenance 188,000 213,000 346,595 (133,595)
Sewer Maintenance 35,000 11,343 13,400 (2,057)
Total Public Works 5,196,900 4,915,627 4,934,104 (18,477)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GENERAL FUND (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(26)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
EXPENDITURES (CONTINUED)
Parks and Recreation:
Recreation Administration 1,262,700$ 1,117,113$ 1,077,321$ 39,792$
Recreation Facilities 1,171,900 1,134,186 1,118,862 15,324
Special Events 318,800 309,173 302,843 6,330
PVIC 402,900 452,905 464,773 (11,868)
REACH 64,200 69,958 75,283 (5,325)
Parking Enforcement 117,500 95,369 87,773 7,596
Support Services 23,400 23,400 22,770 630
Total Parks and Recreation 3,361,400 3,202,104 3,149,625 52,479
Community Development:
Planning Services 1,773,800 1,562,986 1,485,459 77,527
Building and Safety 889,500 669,695 656,332 13,363
Code Enforcement 271,500 267,500 268,139 (639)
View Restoration/Preservation 380,900 369,635 369,954 (319)
NCCP - - - -
Geology 150,000 150,000 163,336 (13,336)
Animal Control 191,000 151,000 150,611 389
Total Community Development 3,656,700 3,170,816 3,093,831 76,985
Non-Departmental 1,919,416 3,401,620 2,093,997 1,307,623
Debt Service
Principal 7,977 7,977 7,977 -
Interest 183 183 183 -
Total Debt Service 8,160 8,160 8,160 -
Total Expenditures 27,418,400 27,449,011 25,888,803 1,560,208
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,537,300 2,526,689 10,039,350 7,512,661
OTHER FINANCING SOURCES (USES)
Transfers In 657,000 657,000 310,000 (347,000)
Transfers Out (2,945,000) (5,424,515) (4,784,515) 640,000
Total Other Financing
Sources (Uses)(2,288,000) (4,767,515) (4,474,515) 293,000
NET CHANGE IN FUND BALANCE 249,300 (2,240,826) 5,564,835 7,805,661
Fund Balance - Beginning of Year 25,798,773 25,798,773 25,798,773 -
FUND BALANCE - END OF YEAR 26,048,073$ 23,557,947$ 31,363,608$ 7,805,661$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(27)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies -$ -$ 1,803,693$ 1,803,693$
Investment Income (Loss)- - (29,997) (29,997)
Total Revenues - - 1,773,696 1,773,696
EXPENDITURES
Capital Outlay - 5,213,760 1,803,693 3,410,067
NET CHANGE IN FUND BALANCE - (5,213,760) (29,997) 5,183,763
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR -$ (5,213,760)$ (29,997)$ 5,183,763$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUND
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(28)
Equipment
Replacement
Internal
Service
Fund
ASSETS
CURRENT ASSETS
Cash and Investments 2,831,867$
Receivables:
Interest 3,315
Total Current Assets 2,835,182
NONCURRENT ASSETS
Capital Assets, Being Depreciated:
Property and Equipment 2,525,280
Accumulated Depreciation (2,440,228)
Total Noncurrent Assets 85,052
Total Assets 2,920,234
NET POSITION
Investment In Capital Assets 85,052
Unrestricted 2,835,182
Total Net Position 2,920,234$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(29)
Equipment
Replacement
Internal
Service
Fund
OPERATING REVENUES
Charges for Services 308,400$
Miscellaneous -
Total Operating Revenues 308,400
OPERATING EXPENSES
Materials and Supplies 51,708
Depreciation 75,415
Total Operating Expenses 127,123
OPERATING INCOME 181,277
NONOPERATING REVENUES
Investment Income (Loss)(20,115)
CHANGE IN NET POSITION 161,162
Net Position - Beginning of Year 2,759,072
NET POSITION - END OF YEAR 2,920,234$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(30)
Equipment
Replacement
Internal
Service
Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Interfund Services Provided 308,400$
Payments to Suppliers (51,708)
Net Cash Provided by Operating Activities 256,692
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (10,077)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received on Investments 35,103
Fair Value Adjustment on Investments (57,370)
Net Cash Used by Investing Activity (22,267)
NET INCREASE IN CASH AND CASH EQUIVALENTS 224,348
Cash and Cash Equivalents - Beginning of Year 2,607,519
CASH AND CASH EQUIVALENTS - END OF YEAR 2,831,867$
RECONCILIATION OF OPERATING LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income 181,277$
Adjustments to Reconcile Operating Loss to Net Cash
Provided by Operating Activities:
Depreciation 75,415
Changes in Operating Assets and Liabilities:
Net Cash Provided By Operating Activities 256,692$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUND
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(31)
Successor
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and Investments 293,704$
Receivables:
Interest Receivable 307
Total Assets 294,011
LIABILITIES
CURRENT LIABILITIES
Current Portion of Noncurrent Liabilities 545,955
Total Current Liabilities 545,955
NONCURRENT LIABILITIES
Due Beyond One Year 12,849,068
Total Noncurrent Liabilities 12,849,068
Total Liabilities 13,395,023
Net Position (Deficit) Held in Trust (13,101,012)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(32)
Successor
Agency
Private-Purpose
Trust Fund
ADDITIONS
Taxes 780,175$
Investment Income (Loss)(1,915)
Total Additions 778,260
DEDUCTIONS
Administration 275
Debt Interest and Fiscal Charges 317,329
Total Deductions 317,604
CHANGE IN NET POSITION 460,656
Net Position (Deficit) - Beginning of Year (13,561,668)
NET POSITION (DEFICIT) - END OF YEAR (13,101,012)$
NOTES TO FINANCIAL STATEMENTS
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(33)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Rancho Palos Verdes (the City) conform to accounting
principles generally accepted in the United States of America as applicable to governments.
The Governmental Accounting Standards Board (GASB) is the accepted standard setting
body for governmental accounting and financial reporting principles. The following is a
summary of the significant policies.
A. Reporting Entity
The reporting entity, “City of Rancho Palos Verdes”, includes the accounts of the City
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(34)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. Reporting Entity (Continued)
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 is a fiduciary component unit. The balances and transactions of
the Successor Agency are reported as a separate Fiduciary Fund private purpose trust
fund.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(35)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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
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.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(36)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 a summary of
Governmental 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 Sheet – Governmental
Funds” and “Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds” for all major and other governmental funds. An accompanying
schedule is presented to reconcile and explain the differences in fund balances as
presented in these statements to the Net 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 American Rescue Plan Act Special Revenue Fund is used to account for American
Rescue Plan Act assistance.
The Capital Improvement Capital Projects Fund is used to account for funds used for the
City’s capital improvement projects.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting/Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
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 nonoperating
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 internal service fund are
charges for services. Operating expenses for the internal service fund 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
nonoperating revenues and expenses.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting/Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
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 are 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.).
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, except for the
Bikeways Special Revenue Fund. 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, 2022, based on
calculations by City Management, the proceeds of taxes in the amount of $24.3 million
did not exceed appropriation limit of $32.8 million.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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, equipment, and right-to-use
assets with an initial individual cost of more than $5,000 and; and improvements and
infrastructure assets with construction costs of more than $100,000, that have an
estimated useful lif of more than one year. 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.
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
Right-to-use Assets:
Equipment 1 to 3 Years
Infrastructure Assets:
Roadway System 10 to 100 Years
Sewer System 25 to 50 Years
Storm Drain System 30 to 100 Years
Parks System 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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 Equipment Replacement Internal Service Fund participates in the pooling of City-
wide cash and investments. Amounts from the pool are available to this fund on
demand. Therefore, the cash and investments reported in this fund is considered to be
cash and cash equivalents for purpose of the statement of cash flows.
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 nonspendable.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L. Net Position and Fund Balance Flow Assumptions
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.
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.
The fund balances reported on the fund statements consist of the following categories:
Nonspendable – 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.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 assets that applies to
future periods 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 differences between expected and
actual 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.
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 assets that applies to future periods 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 from lease receivable is initially measured at the initial amount
of the lease receivable, adjusted for lease payments received at or before the
lease commencement date. Subsequently, the deferred inflow of resources is
recognized as revenue over the life of the lease term.
Deferred inflows related to pensions for changes in employer’s proportion and
differences between employer’s 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 the net differences between projected
and actual earnings on plan investments. These amounts are amortized over five
years.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. 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.
O. New Accounting Pronouncements
GASB 87
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB
Statement No. 87, Leases. This standard requires the recognition of certain lease assets
and liabilities for leases that previously were classified as operating leases and as
inflows of resources or outflows of resources recognized based on the payment
provisions of the contract. It establishes a single model for lease accounting based on
the foundational principle that leases are financings of the right to use an underlying
asset. Under this standard, a lessee is required to recognize a lease liability and an
intangible right-to-use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources. The Entity adopted the requirements of
the guidance effective July 1, 2021, and has applied the provisions of this standard to
the beginning of the period of adoption.
NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2022, are classified in the accompanying financial
statements as follows:
Government- Fiduciary Fund
Wide Statement of
Statement of Fiduciary
Net Position Net Position Total
Cash and Investments 83,030,275$ 293,704$ 83,323,979$
Restricted Cash 7,949,939 - 7,949,939
Total Cash and Investments 90,980,214$ 293,704$ 91,273,918$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(44)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Cash and investments as of June 30, 2022 consist of the following:
Petty Cash 5,000$
Deposits with Financial Institutions 3,293,691
Certificates of Deposit 21,873,641
Money Market Mutual Funds 272,604
U.S. Treasury Obligations 3,802,500
Government Sponsored Agency Bonds 2,315,762
Local Agency Investment Fund (LAIF)59,710,720
Total 91,273,918$
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
Government Sponsored Agency Bonds 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 None
Money Market Savings/Demand
Deposits N/A 15% $5 Million
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect fair
value of an investment. Generally, the longer the maturity of an investment, there is a
greater sensitivity of its fair value to changes in market interest rates. The City manages its
exposure to interest rate risk by investing with the Local Agency Investment Fund (LAIF)
such that the portfolio provides cash flows and liquidity need for operations. The City’s
investment is represented by shares in the pool, which can be withdrawn in one business
day. The average maturity of the pool is less than one year.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(45)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk (Continued)
Remaining
Maturity
Investment Type 0-6 Months 6-12 Months 12-36 Months 36-60 Months Total
Certificates of Deposit 7,572,086$ 1,249,342$ 5,327,286$ 7,724,927$ 21,873,641$
Money Market Mutual Funds 272,604 - - - 272,604
U.S. Treasury Obligations - 985,000 993,125 1,824,375 3,802,500
Government Sponsored Agency Bonds - - 502,200 1,813,562 2,315,762
Local Agency Investment Fund (LAIF) 59,710,720 - - - 59,710,720
Total 67,555,410$ 2,234,342$ 6,822,611$ 11,362,864$ 87,975,227$
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 US. Treasury Obligations are not required to
be rated. The certificates of deposit, and LAIF are not rated. The money market funds and
Government Sponsored Agency Bonds are rated AAA and AA, respectively.
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 fair
value of the pledged securities in the collateral pool must equal at least 110% 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% of
the secured public deposits.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(46)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
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 U. S. Treasury Obligations and Government
Sponsored Agency Bonds are 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.
NOTE 3 INTERFUND TRANSACTIONS
Interfund Receivable/Payable
The $126,685 due to the General Fund from Other Governmental Funds is the result of
loans to cover temporary deficit cash balances.
Interfund Transfers
Interfund transfers for the year ended June 30, 2022, consisted of the following:
Transfer From
Other
General Governmental
Transfer To Fund Funds Totals
General Fund -$ 310,000$ 310,000$
Capital Improvement Projects 4,699,515 - 4,699,515
Other Governmental Funds 85,000 - 85,000
Total 4,784,515$ 310,000$ 5,094,515$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(47)
NOTE 3 INTERFUND TRANSACTIONS (CONTINUED)
Interfund Transfers (Continued)
Transfers are used to: (1) move revenues from the fund that statute or budget requires for
collection to the fund that statute or budget requires for expenditure; (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; and,
(3) return money that was originally transferred from the General Fund to another fund, yet
not used.
The General Fund transferred a total of $4,784,515 to other funds. Of this amount,
$4,699,515 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 remaining $85,000 was transferred to the following Other Governmental Funds:
$55,000 to the Improvement Authority Portuguese Bend to subsidize annual maintenance of
landslide mitigation facilities; and, $30,000 to the Subregion 1 Fund to subsidize landscape
maintenance. The General Fund received $310,000 from the following Other Governmental
Funds: $160,000 from the Public Safety Grants Fund to supplement the special community
resource policing team for the deputy cost within the Sheriff program of the public safety
section of the budget, and $150,000 from the Measure A Special Revenue Fund to cover
park and trail maintenance costs.
NOTE 4 LEASES RECEIVABLE
The City, acting as lessor, leases equipment under three long-term, noncancellable lease
agreements. The leases expire at various dates through June 30, 2041. The net present
values of the leases receivable were determined using a discount rate of 1.98%. Rent
payments ranging from $283 to $3,925, are received monthly. During the year ended
June 30, 2022, the District recognized $87,735 and $15,029 in lease revenue and interest
revenue respectively, pursuant to these lease agreements.
One of the leases provides for increases in future minimum monthly rent payments, subject
to certain stated increases.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(48)
NOTE 5 CAPITAL ASSETS AND DEPRECIATION
The City has reported all capital assets including infrastructure in the Government-Wide
Statement of Net Position. The City elected to use the basic reporting approach as defined
by GASB Statement No. 34 for all infrastructures, whereby depreciation expense and
accumulated depreciation has been recorded. The following tables present the capital
assets activity for the year ended June 30, 2022.
Beginning
Balance, as Ending
Restated (1) Increases Decreases Balance
Governmental Activities
Capital Assets not Being Depreciated/Amortized:
Land 43,543,382$ - - 43,543,382$
Construction in Progress 2,742,642 1,512,150 (2,617,562) 1,637,230
Total Capital Assets not
Being Depreciated/Amortized 46,286,024 1,512,150 (2,617,562) 45,180,612
Capital Assets Being Depreciated/Amortized:
Building and Improvements 14,281,198 - - 14,281,198
Vehicles 592,099 - - 592,099
Computer Equipment 989,151 161,313 - 1,150,464
Equipment - Water Quality 11,813 - - 11,813
Furniture, Fixtures, and Equipment 1,024,353 10,077 - 1,034,430
Right-to-use Leased Assets:
Equipment 13,576 - - 13,576
Infrastructure:
Roadway System 126,887,814 2,157,505 - 129,045,319
Sewer System 25,965,995 - - 25,965,995
Storm Drain System 13,682,822 460,057 - 14,142,879
Storm Drain System - Water Quality 36,851,640 - - 36,851,640
Parks System 8,003,562 - - 8,003,562
Total Capital Assets
Being Depreciated/ Amortized 228,304,023 2,788,952 - 231,092,975
Less Accumulated Depreciation/Amortization for:
Buildings and Improvements (7,620,364) (266,167) - (7,886,531)
Vehicles (490,971) (44,585) - (535,556)
Computer Equipment (989,150) - - (989,150)
Equipment - Water Quality (11,813) - - (11,813)
Furniture, Fixtures, and Equipment (897,420) (30,830) - (928,250)
Right-to-use Leased Assets:
Equipment - (8,032) - (8,032)
Infrastructure:
Roadway System (74,178,076) (4,622,556) - (78,800,632)
Sewer System (21,935,666) (453,848) - (22,389,514)
Storm Drain System (5,525,398) (275,350) - (5,800,748)
Storm Drain System - Water Quality (5,731,091) (832,574) - (6,563,665)
Parks System (3,066,771) (317,586) - (3,384,357)
Total Accumulated Depreciation/Amortization (120,446,720) (6,851,528) - (127,298,248)
Total Capital Assets
Being Depreciated/Amortized, Net 107,857,303 (4,062,576) - 103,794,727
Governmental Activities
Capital Assets, Net 154,143,327$ (2,550,426)$ (2,617,562)$ 148,975,339$ (1) The beginning balance has been restated to add right-to-use leased equipment in
accordance with the implementation of GASB Statement No. 87, Leases.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(49)
NOTE 5 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 and Amortization of Right-to-Use Equipment)274,199$
Public Works (Depreciation of Roadways, Sewers,
and Storm Drains)6,184,328
Parks and Recreation (Depreciation of Parks System)317,586
Capital Assets Held by the City's Internal Service
Funds are Charged to Various Functions Based on
their Usage of the Assets 75,415
Total Depreciation/Amortization Expense
- Governmental Activities 6,851,528$
NOTE 6 NOTES RECEIVABLE
Notes
Receivable
Affordable Housing 8,517,467$
Community Development Block Grant 246,791
Subtotal 8,764,258
Receivable from Successor Agency 10,540,023
Allowance from Successor Agency receivable (10,540,023)
Total Notes Receivable 8,764,258$
The receivable from the Successor Agency is discussed further in Note 15.
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 $2,058,807 at June 30,
2022 was $8,517,467.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(50)
NOTE 6 NOTES RECEIVABLE (CONTINUED)
Affordable Housing (Continued)
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, 2022 is $246,791.
NOTE 7 LONG-TERM LIABILITIES
Balance
July 1, 2021, Balance Amount Due
as Restated (1) Additions Deletions June 30, 2022 in One Year
Employee Compensated Absences 523,087$ 370,407$ (385,847)$ 507,647$ 374,458$
Leases Payable 13,576 - (7,977) 5,599 5,599
Loan Payable - 8,000,000 - 8,000,000 734,025
Total 536,663$ 8,370,407$ (393,824)$ 8,513,246$ 1,114,082$ (1) The beginning balance has been restated to add lease liabilities in accordance with the
implementation of GASB Statement No. 87, Leases.
Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences. Based on
historical trends, $374,458 is estimated to be the amount that will be used and/or paid out
during the fiscal year ended June 30, 2022.
Leases Payable
The City leases land and improvements for various terms under two long-term,
noncancelable lease agreements. The leases expire at various dates through June 12, 2023.
The net present values of the leases payable were determined using a discount rate of
1.98%. Monthly lease payments total $680.
Loan Payable
On April 8, 2022, the City obtained a $8,000,000 term loan bearing an interest rate of 1.98%
for the purpose of funding a portion of the costs of construction of a new City-owned
community park. Principal is payable annually on April 1, commencing April 1, 2023. Interest
is payable semi-annually each April 1 and October 1. In the event of default, the lender is
allowed to charge a default interest rate of 3.0% above the base rate on outstanding
principal.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(51)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Future debt service payments on the loan are as follows:
Year Ending June 30,Principal Interest Total
2023 734,025$ 155,320$ 889,345$
2024 745,478 143,866 889,344
2025 760,239 129,106 889,345
2026 775,292 114,053 889,345
2027 790,642 98,702 889,344
2028 - 2032 4,194,324 252,399 4,446,723
Total 8,000,000$ 893,446$ 8,893,446$
NOTE 8 CLASSIFICATIONS OF NET POSITION AND FUND BALANCE
The City’s governmental fund balances were classified as follows at June 30, 2022:
Plan Act Capital Other
General Special Revenue Improvement Governmental
Fund Fund Fund Funds
Nonspendable:
In Form (Inventory and Prepaid Items)1,462,470$ -$ -$ -$
Legally (Endowment Principal)- - - 1,750,000
Restricted:
Public Works - - - 3,250,858
Housing and Community Development - - - 1,205,161
Transportation - - - 7,037,539
Parks and Recreation - - 7,949,939 1,597,800
Public Safety - - - 104,543
Committed:
City Administration 71,434 - - -
Public Safety 95,515 - - -
Public Works 218,280 - 4,455,087 -
Recreation and Parks 15,604 - - -
Housing and Community Development 46,240 - - -
Assigned:
Public Works - - 25,710,004 -
Unassigned:
Unrestricted Fund Balance 29,454,065 (29,997) - (91,167)
Continued Appropriations - - - -
Governmental Fund Balance
Totals 31,363,608$ (29,997)$ 38,115,030$ 14,854,734$
Nonspendable Fund Balance
General Fund assets include $35,159 of inventory held for resale at the Point Vicente
Interpretive Center gift shop, and $1,427,311 of prepaid costs related to future years.
The fund balance of the Improvement Authority’s Abalone Cove Permanent Fund includes a
$1,000,000 nonspendable endowment, as required by a Reimbursement and Settlement
Agreement dated October 27, 1987 in connection with the Horan Lawsuit (discussed further
in Note 15).
The fund balance of the Subregion One Maintenance Permanent Fund includes a $750,000
nonspendable endowment, as required by the developer agreement for the Subregion One
tract.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(52)
NOTE 8 CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED)
Nonspendable Fund Balance (Continued)
Beginning with the fiscal year ended June 30, 2006, the City’s Natural Communities
Conservation Plan (NCCP) required a nonspendable endowment in the Habitat Restoration
Permanent 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. On October 29, 2021, pursuant to
the NCCP adopted on November 19, 2019, by Resolution 2019-61, the City transferred the
nonspendable endowment balance of $188,055 to the Palos Verdes Peninsula Land
Conservancy. See Note 11 for the City’s continuing commitment pursuant to the NCCP.
Restricted Fund Balance
The restricted balances of the City’s Other Governmental Funds are constrained to use for
specific purposes by other governmental agencies, property owners, and grantors. The
$7,949,939 balance of the Capital Improvement Fund is unspent loan proceeds restricted for
the Ladera Linda Community Park.
Committed Fund Balance
The $447,073 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.
The $4,455,087 balance of the Capital Improvement Fund is committed for ongoing
improvements for streets, building, parks, trails and open space, and Portuguese Bend’s
dewatering wells project.
Assigned Fund Balance
The $25,710,004 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 fund balance of at least fifty percent of annual operating
expenditures. As of June 30, 2022, the unrestricted fund balance of $29,454,065 exceeds
the minimum requirement of $12,944,402 (50% of $25,888,803 in General Fund annual
operating expenditures). In addition,City Council approved to carry forward $1,272,000 of
FY 2021-2022 General Fund appropriations to FY 2022-2023.
NOTE 9 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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(53)
NOTE 9 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
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 nonduty 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 for the year ended June 30, 2022, are
summarized in the following table.
Miscellaneous
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 Compensation 2.50%2.00%2.00%
Required Employee Contribution Rates 8%7%6.75%
Required Employer Contributions Rates:
Normal Cost Rate 12.200%8.650%7.590%
Payment of Unfunded Liability 939,262$ 16,726$ 13,407$
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. For the year ended
June 30, 2022, the City made contributions totaling of $ 1,583,725.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(54)
NOTE 9 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
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, 2022, in the amount of $7,751,010.
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, 2021, 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, 2020, rolled forward to June 30, 2021, 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, 2020 and 2021 measurement dates was as follows:
Proportion - June 30, 2020 0.30643%
Proportion - June 30, 2021 0.40821%
Change - Increase (Decrease)0.10178%
For the year ended June 30, 2022, the City recognized pension expense of $3,250,969. At
June 30, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to pension from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to the
Measurement Date 1,583,725$ -$
Differences Between Expected and Actual Experience 869,193 -
Change of Assumptions - -
Change in Employer's Proportion and Differences
Between the Employer's Contributions and the
Employer's Proportionate Share of Contributions - (253,956)
Net Differences Between Projected and Actual
Earnings on Plan Investments - (6,766,222)
Total 2,452,918$ (7,020,178)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(55)
NOTE 9 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources
Related to Pensions (Continued)
The amount of $1,583,725 reported as deferred outflows of resources related to
contributions subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the year ended June 30, 2023. Other amounts reported as deferred
outflows of resources and deferred inflows or resources related to pensions will be
recognized as pension expense as follows:
Year Ended June 30,
2022 (1,320,331)$
2023 (1,406,447)
2024 (1,554,373)
2025 (1,869,834)
2026 -
Thereafter -
Total (6,150,985)$
Actuarial Assumptions
The total pension liability for the June 30, 2021 measurement date was determined by an
actuarial valuation as of June 30, 2020, with update procedures used to roll forward the total
pension liability to June 30, 2021.
The total pension liability was based on the following assumptions:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
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)The mortality table used was developed based on CalPERS-specific data. The
probabilities of mortality are based on the 2017 CalPERS Experience Study for
the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates
includes 15 years of projected mortality improvement using 90% of Scale
MP-2016 published by the Society of Actuaries. For more details on this table,
please refer to the CalPERS Experience Study and Review of Actuarial
Assumptions report from December 2017 that can be found on the CalPERS website.
(3)The less of contract COLA or 2.50% until Purchasing Power Protection Allowance
Floor on purchasing power applies, 2.50% thereafter.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(56)
NOTE 9 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for
fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation
policy, the excess return of 14.3% prescribes a reduction in investment volatility that
corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from
7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability
Management (ALM) cycle, the board elected to defer any changes to the asset allocation
until the ALM process concluded, and the board could make its final decision on the asset
allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset
allocation along with the new capital market assumptions, economic assumptions and
administrative expense assumption support a discount rate of 6.90% (net of investment
expense but without a reduction for administrative expense) for financial reporting purposes.
This includes a reduction in the price inflation assumption from 2.50% to 2.30% as
recommended in the November 2021 CalPERS Experience Study and Review of Actuarial
Assumptions. This study also recommended modifications to retirement rates, termination
rates, mortality rates and rates of salary increases that were adopted by the board. These
new assumptions will be reflected in the GASB 68 accounting valuation reports for the
June 30, 2022, measurement date.
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 FINANCIAL STATEMENTS
JUNE 30, 2022
(57)
NOTE 9 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Long-Term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as follows:
Assumed Real Return Real Return
Asset Years Years
Asset Class (a)Allocation 1 - 10 (b)11+ (c)
Global Equity 50.00%4.80%5.98%
Fixed Income 28.00 1.00%2.62%
Inflation Sensitive 1.00 0.77%1.81%
Private Equity 8.00 6.30%7.23%
Real Assets 13.00 3.75%4.93%
Infrastructure and Forestland 0.00 0.00%0.00%
Liquidity 1.00 0.00%-0.92%
Total 100.00%
(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.
(b)An expected inflation of 2.0% used for this period
(c)An expected inflation of 2.92% used for this period
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 Current Discount
Rate -1% Discount Rate Rate +1%
(6.15%)(7.15%)(8.15%)
14,563,606$ 7,751,010$ 2,119,135$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(58)
NOTE 9 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, 2022, the City had no outstanding amount of contributions to the pension plan
required for the year ended June 30, 2022.
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 nontaxable 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, 2022, the City employees contributed
$55,604 and the City contributed $90,170 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.
NOTE 10 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 124 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 FINANCIAL STATEMENTS
JUNE 30, 2022
(59)
NOTE 10 LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE
(CONTINUED)
Primary 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.
Primary 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 $100,000 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 $100,000 to $500,000 for each occurrence and is
evaluated as a percentage of the pool’s total incurred costs within the second layer.
(4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of
cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million
per occurrence. Subsidence losses also have a $50 million per occurrence limit. The
coverage structure is composed of a combination of pooled self-insurance, reinsurance, and
excess insurance. Additional information concerning the coverage is available on the
following website: https://cjpia.org/coverage/risk-sharing-pools/.
Primary 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 $75,000 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 $75,000 to $200,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the
second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on
the outcome of cost allocation within the first and second loss layers.
For 2021-2022, the Authority’s pooled retention is $1 million per occurrence, with
reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s
Liability losses are pooled among members to $1 million. Coverage from $1 million to
$5 million is purchased through reinsurance policies, and Employer’s Liability losses from
$5 million to $10 million are pooled among members.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(60)
NOTE 10 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 $250,000 deductible. The
Authority has a limit of $20 million.
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 $21,965,054. There is a $10,000 deductible per occurrence
except for nonemergency vehicle insurance which has a $2,500 deductible.
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 $20,786,336. There is a deductible of 5% per unit
of value with a minimum deductible of $100,000.
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.
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 2021-2022.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(61)
NOTE 11 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 10) 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.
Commitments
Pursuant to the City’s Natural Communities Conservation Plan (NCCP) adopted on
November 19, 2019 by Resolution 2019-61, the City transferred the endowment principal
maintained in the City’s Habitat Restoration Permanent Fund of $188,055 to the Palos
Verdes Peninsula Land Conservancy on October 29, 2021. Based on the adopted NCCP,
Section 8.2.1.1 City's Funding Commitments, a minimum of $10,000 will be provided by the
City every year, and continuing for the Permit Term November 19, 2059, adjusted annually
using CPI-U.
NOTE 12 PROPERTY TAXES
Under California law, property taxes are assessed and collected by the counties up to one
percent of assessed value, plus other increases approved by the voters. The property taxes
go into a pool, and are then allocated to the cities based on complex formulas. Accordingly,
the City accrues only those taxes, which are received from the county within sixty days after
year-end.
Lien Date January 1
Levy Date June 30
Due Date November 1 and February 1
Collection Dates December 10 and April 10
NOTE 13 UNAVAILABLE REVENUES
The unavailable revenues in the fund financial statements of the City of Rancho Palos
Verdes as of June 30, 2022 are presented in the following table.
Revenue Measurable but Not Available (beyond
60 days):
Other Governmental Funds 248,803$
Total Unavailable Revenues 248,803$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(62)
NOTE 14 OTHER REQUIRED FUND DISCLOSURES
The following department’s budget had expenditures in excess of the budget for the year
ended June 30, 2022, as follows:
Program Budget Expenditures Excess
General Fund:
Public Works 4,915,627$ 4,934,104$ 18,477$
Other Governmental Funds:
Habitat Restoration Permanent Fund
Public Works 205,600 305,793 100,193
Subregion One Permanent Fund:
Public Works 41,600 44,704 3,104
The American Rescue Plan Act Special Revenue Fund and State Grants Special Revenue
Fund has deficit fund balances of $29,997 and $66,783, respectively, at June 30, 2022.
These deficits will be eliminated by recognition of revenue not available as of year-end and
through transfers from other funds. The Subregion One Maintenance Permanent Fund has a
deficit fund balance of $24,384 which will be eliminated through transfers from the General
Fund. The Successor Agency Private-Purpose Trust Fund has a deficit fiduciary net position
at June 30, 2022 of $13,101,012 which will be reduced by collection of future tax revenues.
NOTE 15 SUCCESSOR AGENCY
Under the Dissolution Act, each California redevelopment agency (each a Dissolved RDA)
was dissolved as of February 1, 2012. A Successor Agency was created for each Dissolved
RDA which is the sponsoring community of the Dissolved RDA unless it elected not to serve
as the Successor Agency. On September 6, 2011, the City elected to serve as the
Successor Agency of the Rancho Palos Verdes Redevelopment Agency.
Debt Summary
Balance Balance Amounts Due
June 30, 2021 Additions Deletions June 30, 2022 in One Year
Due to City:
Portuguese Bend 7,081,272$ 106,035$ (100,360)$ 7,086,947$ 106,035$
Abalone Cove 3,447,196 59,920 (54,040) 3,453,076 59,920
Due to County:
Tax Increment Bond 3,200,000 - (345,000) 2,855,000 380,000
Totals 13,728,468$ 165,955$ (499,400)$ 13,395,023$ 545,955$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(63)
NOTE 15 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, 2022, using the
simple interest rate of 3%, the loan balance is $10,540,023.
Principal Interest Balance
Portuguese Bend 3,534,480$ 3,552,467$ 7,086,947$
Abalone Cove 1,997,337 1,455,739 3,453,076
Allowance from Successor
Agency Receivable (5,531,817) (5,008,206) (10,540,023)
Totals -$ -$ -$
Due to the uncertainty of Redevelopment Property Tax Trust Fund revenue available for
future loan repayments, the City’s loan receivable of $10,540,023 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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(64)
NOTE 15 SUCCESSOR AGENCY (CONTINUED)
Tax Increment Bond and Deferred Interest Payable (Continued)
As stipulated by the parties to the Agreement, a portion of the Loan proceeds was used to
repay a tax allocation and revenue anticipation promissory note issued to the County in the
principal amount of $1,450,000, plus accrued interest equal to $179,244. A second portion
of the proceeds was used to repay expenses advanced by the County in the amount of
$135,614. A third portion was used to repay certain loans from the City to the former
Redevelopment Agency in the amount of $787,340.
Per the terms of the Agreement, $1,000,000 of the proceeds was deposited in the Abalone
Cove Permanent Fund of the Joint Powers Improvement Authority. The remainder of the
proceeds were 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%
of tax increment revenue to the Consolidated Fire Protection District of the County and
50.9% 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% 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%.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(65)
NOTE 15 SUCCESSOR AGENCY (CONTINUED)
Tax Increment Bond and Deferred Interest Payable (Continued)
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% 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% compared to 7.7654% per the original Agreement. The
recalculated deferred interest was $3,111,400. In accordance with the MOU, the
recalculated deferred interest does not accrue additional interest. As of June 30, 2014, the
balance of the deferred interest debt has been completely repaid.
The California Department of Finance has approved the Tax Increment Bond and Deferred
Interest Payable as obligations of the Successor Agency.
The debt service schedule below summarizes all fixed principal and interest payments for
the term of the bond. Because the payback period for the deferred interest amount will
fluctuate depending on the availability of excess property tax revenue, no amounts have
been included in the following schedule for repayment of the deferred interest.
Year Ending June 30,Principal Interest Total
2022 380,000$ 133,250$ 513,250$
2023 415,000 113,375 528,375
2024 450,000 91,750 541,750
2025 495,000 68,125 563,125
2026 535,000 42,375 577,375
2027 - 2028 580,000 14,500 594,500
Totals 2,855,000$ 463,375$ 3,318,375$
NOTE 16 SUBSEQUENT EVENT
On July 26, 2022, the City and the Palos Verdes Peninsula Land Conservancy, a California
nonprofit corporation (the Conservancy), as co-owners, acquired two properties for the
purpose of providing a live-in wildlife corridor habitat which was first contemplated as part of
the City’s Natural Communities Conservation Plan/Habitat Conservation Plan. The
acquisition price was funded by $18.4 million in federal, state and county grants, $1.3 million
of City funds, $1.05 million of Conservancy funds and a $250,000 contribution from a private
foundation.
(66)
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
LAST TEN FISCAL YEARS *
YEAR ENDED JUNE 30, 2022
(67)
Miscellaneous
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
Plan's Proportion of the Net
Pension Liability 0.40821% 0.30643% 0.29762% 0.28980% 0.28221% 0.27708% 0.28237% 0.09183%
Plan's Proportionate Share of
the Net Pension Liability 7,751,010$ 12,925,644$ 11,918,073$ 10,921,840$ 11,124,689$ 9,625,397$ 7,637,567$ 5,714,320$
Plan's Covered Payroll 6,513,032$ 6,454,856$ 6,697,322$ 6,360,881$ 6,124,374$ 5,997,450$ 5,673,471$ 5,609,006$
Plan's Proportionate Share of
the Net Pension Liability as a
Percentage of Covered Payroll 119.01% 200.25% 177.95% 171.70% 181.65% 160.49% 134.62% 101.88%
Plan's Proportionate Share of
the Fiduciary Net Position as a
Percentage of the Plan's Total
Pension Liability 84.98% 73.77% 75.26% 75.26% 73.31% 74.06% 78.40% 76.48%
Plan's Proportionate Share
of Aggregate Employer
Contributions 1,724,590$ 1,624,308$ 1,440,684$ 1,235,073$ 1,096,042$ 998,812$ 919,858$ NA
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From Fiscal Year June 30, 2015 to June 30, 2016:
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.
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.
From Fiscal Year June 30, 2019 to June 30, 2020:
There were no changes in assumptions.
From Fiscal Year June 30, 2020 to June 30, 2021:
There were no changes in assumptions.
From Fiscal Year June 30, 2021 to June 30, 2022:
There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF PENSION CONTRIBUTIONS
LAST TEN FISCAL YEARS *
YEAR ENDED JUNE 30, 2022
(68)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016
Contractually Required
Contribution (Actuarially
Determined)1,583,725$ 1,433,161$ 1,265,361$ 1,153,245$ 990,670$ 910,177$ 830,645$
Contributions in Relation to the
Actuarially Determined
Contributions (1,583,725) (1,433,161) (1,265,361) (1,153,245) (990,670) (910,177) (830,645)
Contribution Deficiency (Excess)-$ -$ -$ -$ -$ -$ -$
Covered Payroll 6,868,403$ 6,513,032$ 6,454,856$ 6,697,322$ 6,360,881$ 6,124,374$ 5,997,450$
Contributions as a Percentage of
Covered Payroll 23.06%22.00%19.60%17.22%15.57%14.86%13.85%
Notes to Schedule:
Valuation Date 6/30/2019 6/30/2018 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 Entry Age Entry Age
Amortization Method (1)(1)(1)(1)(1)(1)(1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value
Inflation 2.500%2.500%2.625%2.75%2.75%2.75%2.75%
Salary Increases (2)(2)(2)(2)(2)(2)(2)
Investment Rate of Return 7.00% (3)7.00% (3)7.25% (3) 7.375% (3) 7.50% (3)7.50% (3)7.50% (3)
Retirement Age (4)(4)(4)(4)(4)(4)(4)
Mortality (5)(5)(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 first year of implementation, therefore only eight years are shown.
SUPPLEMENTARY INFORMATION
CITY OF RANCHO PALOS VERDES, CALIFORNIA
DESCRIPTION OF SPECIAL REVENUE FUNDS
JUNE 30, 2022
(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.
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 of Los Angeles 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.
Measure W – To account for the City’s share of the California parcel tax increase of $0.025 per square
foot of impermeable property for funding projects in accordance with the expenditure plan pursuant to
the Los Angeles Region, Safe, Clean Water Program Projects.
Abalone Cove Sewer Assessment – To account for property assessments used to partially pay for
operation and maintenance of the Abalone Cove sewer system.
Donor-Restricted Contributions – To account for donations received to construct or acquire recreational
facilities within the City.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
DESCRIPTION OF SPECIAL REVENUE FUNDS
JUNE 30, 2022
(70)
Special Revenue Fund Descriptions (Continued)
Joint Powers Improvement Authority - Portuguese Bend – To account for maintenance and repairs of
landslide abatement improvements in the Portuguese Bend Project area.
Community Development Block Grant – To account for federal grants received from the Department of
Housing and Urban Development.
State Grants Fund – To account for state 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.
Bikeways – To account for state funds that are used for the construction of bikeways and pedestrian
facilities.
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 nonexpendable 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 $1,000,000 nonexpendable deposit. The interest earnings are
used to pay for maintenance and repair of Abalone Cove landslide abatement improvements.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
(71)
Gas Waste
Tax 1972 Act El Prado 1911 Act Reduction
ASSETS
Cash and Investments 1,423,339$ 28,888$ 42,144$ 1,881,912$ 403,220$
Receivables:
Taxes - - 170 43,521 -
Interest 1,444 34 50 2,239 421
Other 323,751 - - 6,221 17,035
Total Assets 1,748,534$ 28,922$ 42,364$ 1,933,893$ 420,676$
LIABILITIES
Accounts Payable and Accrued Liabilities 225,256$ -$ -$ 30,658$ 28,500$
Due to Other Funds - - - - -
Retentions Payable 1,299 - - - -
Total Liabilities 226,555 - - 30,658 28,500
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - -
FUND BALANCES
Nonspendable:
Endowment Principal - - - - -
Restricted 1,521,979 28,922 42,364 1,903,235 392,176
Unassigned - - - - -
Total Fund Balances 1,521,979 28,922 42,364 1,903,235 392,176
Total Liabilities, Deferred
Inflows, and Fund Balances 1,748,534$ 28,922$ 42,364$ 1,933,893$ 420,676$
Special Revenue Funds
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
(72)
ASSETS
Cash and Investments
Receivables:
Taxes
Interest
Other
Total Assets
LIABILITIES
Accounts Payable and Accrued Liabilities
Due to Other Funds
Retentions Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
FUND BALANCES
Nonspendable:
Endowment Principal
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred
Inflows, and Fund Balances
Air Public
Quality Safety
Management Proposition C Proposition A Grants Measure R
146,227$ 733,750$ 1,811,398$ 104,387$ 1,843,715$
- - - - -
165 804 2,041 156 2,191
- - - - -
146,392$ 734,554$ 1,813,439$ 104,543$ 1,845,906$
9,000$ 30,380$ 534$ -$ 32,555$
- - - - -
- 8,366 - - -
9,000 38,746 534 - 32,555
- - - - -
- - - - -
137,392 695,808 1,812,905 104,543 1,813,351
- - - - -
137,392 695,808 1,812,905 104,543 1,813,351
146,392$ 734,554$ 1,813,439$ 104,543$ 1,845,906$
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
(73)
ASSETS
Cash and Investments
Receivables:
Taxes
Interest
Other
Total Assets
LIABILITIES
Accounts Payable and Accrued Liabilities
Due to Other Funds
Retentions Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
FUND BALANCES
Nonspendable:
Endowment Principal
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred
Inflows, and Fund Balances
Abalone Cove Donor
Sewer Restricted
Measure A Measure M Measure W Assessment Contributions
-$ 573,482$ 752,060$ 152,342$ 794,323$
259,130 - - - -
- 619 942 189 940
52,632 - - 4,081 -
311,762$ 574,101$ 753,002$ 156,612$ 795,263$
-$ 81,865$ 51,742$ 2,410$ 1,778$
88,522 - - - -
- - - - -
88,522 81,865 51,742 2,410 1,778
73,662 - - - -
- - - - -
149,578 492,236 701,260 154,202 793,485
- - - - -
149,578 492,236 701,260 154,202 793,485
311,762$ 574,101$ 753,002$ 156,612$ 795,263$
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
(74)
ASSETS
Cash and Investments
Receivables:
Taxes
Interest
Other
Total Assets
LIABILITIES
Accounts Payable and Accrued Liabilities
Due to Other Funds
Retentions Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
FUND BALANCES
Nonspendable:
Endowment Principal
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred
Inflows, and Fund Balances
Joint Powers
Improvement Community
Authority Development
Portuguese Block Grant State Environmental
Bend (CDBG) Grants Quimby Excise Tax
77,921$ 17,554$ -$ 690,512$ 124,646$
- - - - -
133 - - 857 152
- 14,627 169,465 - -
78,054$ 32,181$ 169,465$ 691,369$ 124,798$
10,355$ 3,725$ 28,620$ 36,632$ 20,556$
- - 38,163 - -
- - - - -
10,355 3,725 66,783 36,632 20,556
- 5,676 169,465 - -
- - - - -
67,699 22,780 - 654,737 104,242
- - (66,783) - -
67,699 22,780 (66,783) 654,737 104,242
78,054$ 32,181$ 169,465$ 691,369$ 124,798$
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
(75)
ASSETS
Cash and Investments
Receivables:
Taxes
Interest
Other
Total Assets
LIABILITIES
Accounts Payable and Accrued Liabilities
Due to Other Funds
Retentions Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
FUND BALANCES
Nonspendable:
Endowment Principal
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred
Inflows, and Fund Balances
Total Total
Special Low-Moderate Affordable Capital
Revenue Income Housing Projects
Bikeways Funds Housing In-lieu Funds
-$ 11,601,820$ 312,343$ 848,681$ 1,161,024$
- 302,821 - 20,000 20,000
- 13,377 334 1,023 1,357
- 587,812 - - -
-$ 12,505,830$ 312,677$ 869,704$ 1,182,381$
-$ 594,566$ -$ -$ -$
- 126,685 - - -
9,665 - - -
- 730,916 - - -
- 248,803 - - -
- - - - -
- 11,592,894 312,677 869,704 1,182,381
- (66,783) - - -
- 11,526,111 312,677 869,704 1,182,381
-$ 12,505,830$ 312,677$ 869,704$ 1,182,381$
Capital Projects FundsSpecial Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
(76)
ASSETS
Cash and Investments
Receivables:
Taxes
Interest
Other
Total Assets
LIABILITIES
Accounts Payable and Accrued Liabilities
Due to Other Funds
Retentions Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
FUND BALANCES
Nonspendable:
Endowment Principal
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred
Inflows, and Fund Balances
Joint Powers Total
Subregion Improvement Total Other
Habitat One Authority Permanent Governmental
Restoration Maintenance Abalone Cove Funds Funds
359,811$ 734,022$ 1,064,536$ 2,158,369$ 14,921,213$
- - - - 322,821
458 868 2,059 3,385 18,119
- - - - 587,812
360,269$ 734,890$ 1,066,595$ 2,161,754$ 15,849,965$
131$ 9,274$ 6,107$ 15,512$ 610,078$
- - - - 126,685
- - - - 9,665
131 9,274 6,107 15,512 746,428
- - - - 248,803
- 750,000 1,000,000 1,750,000 1,750,000
360,138 - 60,488 420,626 13,195,901
- (24,384) - (24,384) (91,167)
360,138 725,616 1,060,488 2,146,242 14,854,734
360,269$ 734,890$ 1,066,595$ 2,161,754$ 15,849,965$
Permanent Funds
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(77)
Gas Waste
Tax 1972 Act El Prado 1911 Act Reduction
REVENUES
Taxes -$ -$ 3,132$ 806,016$ -$
Revenue from Other Agencies 1,920,613 - - - 76,287
Charges for Services - - - - 200,137
Investment Income (Loss) (9,754) (203) (305) (14,967) (2,349)
Other Revenues - - - 98,313 -
Total Revenues 1,910,859 (203) 2,827 889,362 274,075
EXPENDITURES
Current:
Public Works 969,665 - - 371,038 318,983
Parks and Recreation - - - - -
Capital Outlay 33,976 - - 15,752 -
Total Expenditures 1,003,641 - - 386,790 318,983
Excess (Deficiency) of Revenues
Over (Under) Expenditures 907,218 (203) 2,827 502,572 (44,908)
OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out - - - - -
Total Other Financing
Sources (Uses) - - - - -
NET CHANGE IN FUND BALANCES 907,218 (203) 2,827 502,572 (44,908)
Fund Balances - Beginning of Year 614,761 29,125 39,537 1,400,663 437,084
FUND BALANCES - END OF YEAR 1,521,979$ 28,922$ 42,364$ 1,903,235$ 392,176$
Special Revenue Funds
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (CONTINUED)
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(78)
REVENUES
Taxes
Revenue from Other Agencies
Charges for Services
Investment Income (Loss)
Other Revenues
Total Revenues
EXPENDITURES
Current:
Public Works
Parks and Recreation
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year
FUND BALANCES - END OF YEAR
Air Public
Quality Safety
Management Proposition C Proposition A Grants Measure R
-$ -$ -$ -$ -$
39,723 874,133 1,053,834 161,285 655,494
- - - - -
(954) (3,474) (13,069) (947) (14,079)
- - - - -
38,769 870,659 1,040,765 160,338 641,415
54,000 603,204 777,198 - 209,324
- - - - -
- 136,746 - - -
54,000 739,950 777,198 - 209,324
(15,231) 130,709 263,567 160,338 432,091
- - - - -
- - - (160,000) -
- - - (160,000) -
(15,231) 130,709 263,567 338 432,091
152,623 565,099 1,549,338 104,205 1,381,260
137,392$ 695,808$ 1,812,905$ 104,543$ 1,813,351$
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (CONTINUED)
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(79)
REVENUES
Taxes
Revenue from Other Agencies
Charges for Services
Investment Income (Loss)
Other Revenues
Total Revenues
EXPENDITURES
Current:
Public Works
Parks and Recreation
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year
FUND BALANCES - END OF YEAR
Abalone Cove Donor
Sewer Restricted
Measure A Measure M Measure W Assessment Contributions
-$ -$ -$ 56,176$ -$
238,099 741,767 681,800 - -
- - - - -
43 (4,088) (6,755) (952) (5,612)
- - - - 34,325
238,142 737,679 675,045 55,224 28,713
- 536,921 465,212 119,143 1,912
- - - - 11,857
- - - - -
- 536,921 465,212 119,143 13,769
238,142 200,758 209,833 (63,919) 14,944
- - - - -
(150,000) - - - -
(150,000) - - - -
88,142 200,758 209,833 (63,919) 14,944
61,436 291,478 491,427 218,121 778,541
149,578$ 492,236$ 701,260$ 154,202$ 793,485$
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (CONTINUED)
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(80)
REVENUES
Taxes
Revenue from Other Agencies
Charges for Services
Investment Income (Loss)
Other Revenues
Total Revenues
EXPENDITURES
Current:
Public Works
Parks and Recreation
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year
FUND BALANCES - END OF YEAR
Joint Powers
Improvement Community
Authority Development
Portuguese Block Grant State Environmental
Bend (CDBG) Grants Quimby Excise Tax
-$ -$ -$ -$ -$
- 156,633 241,441 - -
- - - - -
(648) - 121 (4,108) (634)
- - - - 15,608
(648) 156,633 241,562 (4,108) 14,974
46,095 46,052 89,052 422,175 120,090
- - - - -
- 112,476 - - -
46,095 158,528 89,052 422,175 120,090
(46,743) (1,895) 152,510 (426,283) (105,116)
55,000 - - - -
- - - - -
55,000 - - - -
8,257 (1,895) 152,510 (426,283) (105,116)
59,442 24,675 (219,293) 1,081,020 209,358
67,699$ 22,780$ (66,783)$ 654,737$ 104,242$
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (CONTINUED)
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(81)
REVENUES
Taxes
Revenue from Other Agencies
Charges for Services
Investment Income (Loss)
Other Revenues
Total Revenues
EXPENDITURES
Current:
Public Works
Parks and Recreation
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year
FUND BALANCES - END OF YEAR
Total Total
Special Low-Moderate Affordable Capital
Revenue Income Housing Projects
Bikeways Funds Housing In-lieu Funds
-$ 865,324$ 30,880$ -$ 30,880$
28,038 6,869,147 - - -
- 200,137 - - -
- (82,734) (2,034) (6,007) (8,041)
- 148,246 - - -
28,038 8,000,120 28,846 (6,007) 22,839
28,038 5,178,102 - - -
- 11,857 - - -
- 298,950 - - -
28,038 5,488,909 - - -
- 2,511,211 28,846 (6,007) 22,839
- 55,000 - - -
- (310,000) - - -
- (255,000) - - -
- 2,256,211 28,846 (6,007) 22,839
- 9,269,900 283,831 875,711 1,159,542
-$ 11,526,111$ 312,677$ 869,704$ 1,182,381$
Capital Projects FundsSpecial Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (CONTINUED)
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(82)
REVENUES
Taxes
Revenue from Other Agencies
Charges for Services
Investment Income (Loss)
Other Revenues
Total Revenues
EXPENDITURES
Current:
Public Works
Parks and Recreation
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year
FUND BALANCES - END OF YEAR
Joint Powers Total
Subregion Improvement Total Other
Habitat One Authority Permanent Governmental
Restoration Maintenance Abalone Cove Funds Funds
-$ -$ -$ -$ 896,204$
- - - - 6,869,147
- - - - 200,137
(2,041) (5,095) (9,753) (16,889) (107,664)
- - - - 148,246
(2,041) (5,095) (9,753) (16,889) 8,006,070
305,793 44,704 35,736 386,233 5,564,335
- - - - 11,857
- - - - 298,950
305,793 44,704 35,736 386,233 5,875,142
(307,834) (49,799) (45,489) (403,122) 2,130,928
- 30,000 - 30,000 85,000
- - - - (310,000)
- 30,000 - 30,000 (225,000)
(307,834) (19,799) (45,489) (373,122) 1,905,928
667,972 745,415 1,105,977 2,519,364 12,948,806
360,138$ 725,616$ 1,060,488$ 2,146,242$ 14,854,734$
Permanent Funds
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(83)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 1,911,600$ 1,911,600$ 1,920,613$ 9,013$
Use of Money and Property 5,400 5,400 (9,754) (15,154)
Other Revenues 38,500 38,500 - (38,500)
Total Revenues 1,955,500 1,955,500 1,910,859 (44,641)
EXPENDITURES
Public Works:
Street Pavement Maintenance 245,000 282,323 203,129 79,194
Street Landscape Maintenance 670,000 705,355 757,398 (52,043)
Traffic Signal Maintenance - - 9,138 (9,138)
Capital Outlay - 33,976 33,976 -
Total Expenditures 915,000 1,021,654 1,003,641 18,013
NET CHANGE IN FUND BALANCE 1,040,500 933,846 907,218 (26,628)
Fund Balance - Beginning of Year 614,761 614,761 614,761 -
FUND BALANCE - END OF YEAR 1,655,261$ 1,548,607$ 1,521,979$ (26,628)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
1972 ACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(84)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Use of Money and Property 200$ 200$ (203)$ (403)$
NET CHANGE IN FUND BALANCE 200 200 (203) (403)
Fund Balance - Beginning of Year 29,125 29,125 29,125 -
FUND BALANCE - END OF YEAR 29,325$ 29,325$ 28,922$ (403)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
EL PRADO SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(85)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Taxes 2,300$ 2,300$ 3,132$ 832$
Use of Money and Property 200 200 (305) (505)
Total Revenues 2,500 2,500 2,827 327
EXPENDITURES
Public Works 800 800 - 800
NET CHANGE IN FUND BALANCE 1,700 1,700 2,827 1,127
Fund Balance - Beginning of Year 39,537 39,537 39,537 -
FUND BALANCE - END OF YEAR 41,237$ 41,237$ 42,364$ 1,127$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
1911 ACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(86)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Taxes 615,200$ 615,200$ 806,016$ 190,816$
Use of Money and Property 13,000 13,000 (14,967) (27,967)
Total Revenues 628,200 628,200 889,362 261,162
EXPENDITURES
Public Works 725,100 740,852 371,038 369,814
Capital Outlay 155,000 170,752 15,752 155,000
Total Expenditures 880,100 911,605 386,790 524,815
NET CHANGE IN FUND BALANCE (251,900) (283,405) 502,572 785,977
Fund Balance - Beginning of Year 1,400,663 1,400,663 1,400,663 -
FUND BALANCE - END OF YEAR 1,148,763$ 1,117,258$ 1,903,235$ 785,977$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
WASTE REDUCTION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(87)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 10,000$ 10,000$ 76,287$ 66,287$
Charges for Services 116,400 116,400 200,137 83,737
Investment Income (Loss)4,600 4,600 (2,349) (6,949)
Total Revenues 131,000 131,000 274,075 143,075
EXPENDITURES
Public Works 340,700 386,500 318,983 67,517
NET CHANGE IN FUND BALANCE (209,700) (255,500) (44,908) 210,592
Fund Balance - Beginning of Year 437,084 437,084 437,084 -
FUND BALANCE - END OF YEAR 227,384$ 181,584$ 392,176$ 210,592$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AIR QUALITY MANAGEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(88)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 57,400$ 57,400$ 39,723$ (17,677)$
Investment Income (Loss)1,500 1,500 (954) (2,454)
Total Revenues 58,900 58,900 38,769 (20,131)
EXPENDITURES
Public Works 57,000 57,000 54,000 3,000
NET CHANGE IN FUND BALANCE 1,900 1,900 (15,231) (17,131)
Fund Balance - Beginning of Year 152,623 152,623 152,623 -
FUND BALANCE - END OF YEAR 154,523$ 154,523$ 137,392$ (17,131)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PROPOSITION C SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(89)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 699,000$ 699,000$ 874,133$ 175,133$
Investment Income (Loss)6,200 6,200 (3,474) (9,674)
Other Revenues - - - -
Total Revenues 705,200 705,200 870,659 165,459
EXPENDITURES
Public Works 995,000 1,155,629 603,204 552,425
Capital Outlay - 136,746 136,746 -
Total Expenditures 995,000 1,292,375 739,950 552,425
NET CHANGE IN FUND BALANCE (289,800) (587,175) 130,709 717,884
Fund Balance - Beginning of Year 565,099 565,099 565,099 -
FUND BALANCE - END OF YEAR 275,299$ (22,076)$ 695,808$ 717,884$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PROPOSITION A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(90)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 842,200$ 842,200$ 1,053,834$ 211,634$
Investment Income (Loss)10,500 10,500 (13,069) (23,569)
Total Revenues 852,700 852,700 1,040,765 188,065
EXPENDITURES
Public Works 793,000 793,000 777,198 15,802
Total Expenditures 793,000 793,000 777,198 15,802
NET CHANGE IN FUND BALANCE 59,700 59,700 263,567 203,867
Fund Balance - Beginning of Year 1,549,338 1,549,338 1,549,338 -
FUND BALANCE - END OF YEAR 1,609,038$ 1,609,038$ 1,812,905$ 203,867$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PUBLIC SAFETY GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(91)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 156,500$ 156,500$ 161,285$ 4,785$
Investment Income (Loss)1,200 1,200 (947)(2,147)
Total Revenues 157,700 157,700 160,338 2,638
OTHER FINANCING USES
Transfers Out (200,000) (200,000) (160,000)40,000
NET CHANGE IN FUND BALANCE (42,300) (42,300) 338 42,638
Fund Balance - Beginning of Year 104,205 104,205 104,205 -
FUND BALANCE - END OF YEAR 61,905$ 61,905$ 104,543$ 42,638$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE R SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(92)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 537,500$ 537,500$ 655,494$ 117,994$
Investment Income (Loss)10,000 10,000 (14,079) (24,079)
Total Revenues 547,500 547,500 641,415 93,915
EXPENDITURES
Public Works 1,285,000 1,537,994 209,324 1,328,670
NET CHANGE IN FUND BALANCE (737,500) (990,494) 432,091 1,422,585
Fund Balance - Beginning of Year 1,381,260 1,381,260 1,381,260 -
FUND BALANCE - END OF YEAR 643,760$ 390,766$ 1,813,351$ 1,422,585$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(93)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 97,800$ 97,800$ 238,099$ 140,299$
Investment Income (Loss)200 200 43 (157)
Total Revenues 98,000 98,000 238,142 140,142
OTHER FINANCING USES
Transfers Out (150,000) (150,000) (150,000) -
NET CHANGE IN FUND BALANCE (52,000) (52,000) 88,142 140,142
Fund Balance - Beginning of Year 61,436 61,436 61,436 -
FUND BALANCE - END OF YEAR 9,436$ 9,436$ 149,578$ 140,142$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(94)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 1,192,400$ 1,192,400$ 741,767$ (450,633)$
Investment Income (Loss)1,800 1,800 (4,088) (5,888)
Total Revenues 1,194,200 1,194,200 737,679 (456,521)
EXPENDITURES
Public Works 562,000 562,000 536,921 25,079
NET CHANGE IN FUND BALANCE 632,200 632,200 200,758 (431,442)
Fund Balance - Beginning of Year 291,478 291,478 291,478 -
FUND BALANCE - END OF YEAR 923,678$ 923,678$ 492,236$ (431,442)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE W SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(95)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 632,000$ 632,000$ 681,800$ 49,800$
Investment Income (Loss)- - (6,755) (6,755)
Total Revenues 632,000 632,000 675,045 43,045
EXPENDITURES
Public Works 588,400 612,239 465,212 147,027
NET CHANGE IN FUND BALANCE 43,600 19,761 209,833 190,072
Fund Balance - Beginning of Year 491,427 491,427 491,427 -
FUND BALANCE - END OF YEAR 535,027$ 511,188$ 701,260$ 190,072$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ABALONE COVE SEWER ASSESSMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(96)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Taxes 50,000$ 50,000$ 56,176$ 6,176$
Investment Income (Loss)2,000 2,000 (952) (2,952)
Total Revenues 52,000 52,000 55,224 3,224
EXPENDITURES
Public Works 157,500 184,355 119,143 65,212
NET CHANGE IN FUND BALANCE (105,500) (132,355) (63,919) 68,436
Fund Balance - Beginning of Year 218,121 218,121 218,121 -
FUND BALANCE - END OF YEAR 112,621$ 85,766$ 154,202$ 68,436$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DONOR-RESTRICTED CONTRIBUTIONS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(97)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)25,000$ 25,000$ (5,612)$ (30,612)$
Other Revenue - - 34,325 34,325
Total Revenues 25,000 25,000 28,713 3,713
EXPENDITURES
Public Works 35,000 35,000 1,912 33,088
Parks and Recreation 16,000 16,000 11,857 4,143
Total Expenditures 51,000 51,000 13,769 37,231
NET CHANGE IN FUND BALANCE (26,000) (26,000) 14,944 40,944
Fund Balance - Beginning of Year 778,541 778,541 778,541 -
FUND BALANCE - END OF YEAR 752,541$ 752,541$ 793,485$ 40,944$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(98)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)500$ 500$ (648)$ (1,148)$
EXPENDITURES
Public Works 80,000 80,000 46,095 33,905
Excess (Deficiency) of Revenues
Over (Under) Expenditures (79,500) (79,500) (46,743) 32,757
OTHER FINANCING SOURCES
Transfers In 55,000 55,000 55,000 -
NET CHANGE IN FUND BALANCE (24,500) (24,500) 8,257 32,757
Fund Balance - Beginning of Year 59,442 59,442 59,442 -
FUND BALANCE - END OF YEAR 34,942$ 34,942$ 67,699$ 32,757$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(99)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 365,600$ 365,600$ 156,633$ (208,967)$
EXPENDITURES
Public Works - 33,755 46,052 (12,297)
Capital Outlay 150,000 252,476 112,476 140,000
Total Expenditures 150,000 286,231 158,528 127,703
NET CHANGE IN FUND BALANCE 215,600 79,369 (1,895) 81,264
Fund Balance - Beginning of Year 24,675 24,675 24,675 -
FUND BALANCE - END OF YEAR 240,275$ 104,044$ 22,780$ 81,264$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
STATE GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(100)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Revenue from Other Agencies 310,000$ 310,000$ 241,441$ (68,559)$
Investment Income (Loss)- - 121 121
Total Revenues 310,000 310,000 241,562 (68,438)
EXPENDITURES
Public Works 310,000 310,000 89,052 220,948
NET CHANGE IN FUND BALANCE - - 152,510 152,510
Fund Deficit - Beginning of Year (219,293) (219,293) (219,293) -
FUND BALANCE (DEFICIT) - END
OF YEAR (219,293)$ (219,293)$ (66,783)$ 152,510$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
QUIMBY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(101)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)10,000$ 10,000$ (4,108)$ (14,108)$
Other Revenues 15,000 15,000 - (15,000)
Total Revenues 25,000 25,000 (4,108) (29,108)
EXPENDITURES
Public Works - 1,168,148 422,175 745,973
NET CHANGE IN FUND BALANCE 25,000 (1,143,148) (426,283) 716,865
Fund Balance - Beginning of Year 1,081,020 1,081,020 1,081,020 -
FUND BALANCE - END OF YEAR 1,106,020$ (62,128)$ 654,737$ 716,865$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX SERVICE REVENUE FUND
YEAR ENDED JUNE 30, 2022
(102)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)2,400$ 2,400$ (634)$ (3,034)$
Other Revenues 7,600 7,600 15,608 8,008
Total Revenues 10,000 10,000 14,974 4,974
EXPENDITURES
Public Works 210,000 210,000 120,090 89,910
NET CHANGE IN FUND BALANCE (200,000) (200,000) (105,116) 94,884
Fund Balance - Beginning of Year 209,358 209,358 209,358 -
FUND BALANCE - END OF YEAR 9,358$ 9,358$ 104,242$ 94,884$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOW-MODERATE INCOME CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(103)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Taxes 30,300$ 30,300$ 30,880$ 580$
Investment Income (Loss)1,600 1,600 (2,034) (3,634)
Total Revenues 31,900 31,900 28,846 (3,054)
NET CHANGE IN FUND BALANCE 31,900 31,900 28,846 (3,054)
Fund Balance - Beginning of Year 283,831 283,831 283,831 -
FUND BALANCE - END OF YEAR 315,731$ 315,731$ 312,677$ (3,054)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AFFORDABLE HOUSING IN-LIEU CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(104)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)4,300$ 4,300$ (6,007)$ (10,307)$
Other Revenues 13,000 13,000 - (13,000)
Total Revenues 17,300 17,300 (6,007) (23,307)
NET CHANGE IN FUND BALANCE 17,300 17,300 (6,007) (23,307)
Fund Balance - Beginning of Year 875,711 875,711 875,711 -
FUND BALANCE - END OF YEAR 893,011$ 893,011$ 869,704$ (23,307)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HABITAT RESTORATION PERMANENT FUND
YEAR ENDED JUNE 30, 2022
(105)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)12,400$ 12,400$ (2,041)$ (14,441)$
Other Revenues - - - -
Total Revenues 12,400 12,400 (2,041) (14,441)
EXPENDITURES
Public Works 205,600 205,600 305,793 (100,193)
NET CHANGE IN FUND BALANCE (193,200) (193,200) (307,834) (114,634)
Fund Balance - Beginning of Year 667,972 667,972 667,972 -
FUND BALANCE - END OF YEAR 474,772$ 474,772$ 360,138$ (114,634)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
SUBREGION ONE PERMANENT FUND
YEAR ENDED JUNE 30, 2022
(106)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)14,000$ 14,000$ (5,095)$ (19,095)$
EXPENDITURES
Public Works 41,600 41,600 44,704 (3,104)
Excess (Deficiency) of Revenues
Over (Under) Expenditures (27,600) (27,600) (49,799) (22,199)
OTHER FINANCING SOURCES
Transfers In 30,000 30,000 30,000 -
NET CHANGE IN FUND BALANCE 2,400 2,400 (19,799) (22,199)
Fund Balance - Beginning of Year 745,415 745,415 745,415 -
FUND BALANCE - END OF YEAR 747,815$ 747,815$ 725,616$ (22,199)$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY ABALONE COVE PERMANENT FUND
YEAR ENDED JUNE 30, 2022
(107)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)-$ -$ (9,753)$ (9,753)$
EXPENDITURES
Public Works 45,000 45,000 35,736 9,264
NET CHANGE IN FUND BALANCE (45,000) (45,000) (45,489) (489)
Fund Balance - Beginning of Year 1,105,977 1,105,977 1,105,977 -
FUND BALANCE - END OF YEAR 1,060,977$ 1,060,977$ 1,060,488$ (489)
CITY OF RANCHO PALOS VERDES, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(108)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss)200,000$ 200,000$ (300,738)$ (500,738)$
Other Revenues - - - -
Total Revenues 200,000 200,000 (300,738) (500,738)
EXPENDITURES
Capital Outlay:
Infrastructure Administration - - - -
Street Improvements 1,905,000 1,673,438 30,101 1,643,337
Parks/Trails/Open Space
Improvements 365,000 13,224,175 50,061 13,174,114
Sewer Improvements - 284,576 204,279 80,297
Building Improvements 500,000 529,268 205,155 324,113
Storm Water Quality Improvements 175,000 183,506 1,475 182,031
Landslide Improvements - 405,103 183,726 221,377
Total Expenditures 2,945,000 16,300,066 674,797 15,625,269
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,745,000) (16,100,066) (975,535) 15,124,531
OTHER FINANCING SOURCES (USES)
Loan Proceeds - - 8,000,000 8,000,000
Transfers In 2,553,000 4,699,515 4,699,515 -
Total Financing Sources (Uses)2,553,000 4,699,515 12,699,515 8,000,000
NET CHANGE IN FUND BALANCE (192,000) (11,400,551) 11,723,980 23,124,531
Fund Balance - Beginning of Year 26,391,050 26,391,050 26,391,050 -
FUND BALANCE - END OF YEAR 26,199,050$ 14,990,499$ 38,115,030$ 23,124,531$
STATISTICAL SECTION
CITY OF RANCHO PALOS VERDES, CALIFORNIA
DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2022
(109)
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 Pages
Financial Trends 111
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 121
These schedules contain information to help the reader assess the
City’s most significant local revenue source, property tax.
Debt Capacity 128
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 131
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the City’s
financial activities take place.
Operating Information 136
These schedules contain services and infrastructure data to help the
reader understand how the information in the City’s financial report
relates to the services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(110)
2013 2014 2015 2016 2017
Governmental Activities:
Net Investment In Capital Assets 113,284$ 114,427$ 119,450$ 118,399$ 123,437$
Restricted 1,835 11,792 11,647 21,120 19,387
Unrestricted 46,687 46,679 42,208 42,210 43,618
Total Governmental Activities
Net Position 161,806$ 172,898$ 173,305$ 181,729$ 186,442$
Business-Type Activities:
Net Investment In Capital Assets 18,319$ 29,557$ 31,168$ 31,663$ 31,311$
Restricted - - - - -
Unrestricted 9,727 5,317 5,334 5,598 4,600
Total Business-Type Activities
Net Position 28,046$ 34,874$ 36,502$ 37,261$ 35,911$
Primary Government:
Net Investment In Capital Assets 131,603$ 143,984$ 150,618$ 150,062$ 154,748$
Restricted 1,835 11,792 11,647 21,120 19,387
Unrestricted 56,414 51,996 47,542 47,808 48,218
Total Primary Government
Net Position 189,852$ 207,772$ 209,807$ 218,990$ 222,353$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
NET POSITION BY COMPONENT (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(111)
Governmental Activities:
Net Investment In Capital Assets
Restricted
Unrestricted
Total Governmental Activities
Net Position
Business-Type Activities:
Net Investment In Capital Assets
Restricted
Unrestricted
Total Business-Type Activities
Net Position
Primary Government:
Net Investment In Capital Assets
Restricted
Unrestricted
Total Primary Government
Net Position
2018 2019 2020 2021 2022
125,420$ 159,557$ 156,763$ 153,568$ 147,501$
17,300 16,170 24,129 23,217 23,913
44,168 47,739 38,568 42,974 52,845
186,888$ 223,466$ 219,460$ 219,759$ 224,259$
34,996$ -$ -$ -$ -$
- - - - -
(128) - - - -
34,868$ -$ -$ -$ -$
160,416$ 159,557$ 156,763$ 153,568$ 147,501$
17,300 16,170 24,129 23,217 23,913
44,040 47,739 38,568 42,974 52,845
221,756$ 223,466$ 219,460$ 219,759$ 224,259$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(112)
2013 2014 2015 2016 2017
EXPENSES
Governmental Activities:
Administration 5,534$ 7,530$ 7,048$ 8,062$ 6,746$
Public Safety 4,348 4,429 4,670 5,215 6,534
Public Works 10,874 9,377 10,771 9,610 10,638
Parks and Recreation 1,696 1,369 1,669 2,052 2,434
Community Development 2,526 1,927 2,072 1,971 2,664
Non-Departmental - 35 191 134 2,400
Interest on Long-Term Debt - - - - -
Total Governmental Activities Expenses 24,978 24,667 26,421 27,044 31,416
Business-Type Activities:
Water Quality Flood Protection 594 659 1,422 646 1,400
Total Primary Government Expenses 25,572$ 25,326$ 27,843$ 27,690$ 32,816$
PROGRAM REVENUES
Governmental Activities:
Charges for Services:
Administration 779$ 120$ 108$ 318$ 1,081$
Public Safety 150 42 43 179 140
Public Works 543 169 432 159 274
Parks and Recreation 476 18 144 781 708
Community Development 1,854 1,772 2,058 958 2,066
Non-Departmental - - - 96 -
Operating Grants and Contributions 4,133 2,506 2,274 2,332 4,196
Capital Grants and Contributions 139 2,912 1,230 1,111 818
Total Governmental Activities Program Revenues 8,074 7,539 6,289 5,934 9,283
Business-Type Activities:
Charges for Services:
Water Quality Flood Protection 1,313 1,361 1,369 1,385 11
Operating Grants and Contributions 2,137 - - - -
Capital Grants and Contributions - 6,115 1,213 - -
Total Business-Type Activities Program Revenues 3,450 7,476 2,582 1,385 11
Total Primary Government Program Revenues 11,524$ 15,015$ 8,871$ 7,319$ 9,294$
Net (Expense) Revenue:
Governmental Activities (16,904)$ (17,128)$ (20,132)$ (21,110)$ (22,133)$
Business-Type Activities 2,856 6,817 1,159 738 (1,389)
Total Primary Government Net Expense (14,048)$ (10,311)$ (18,973)$ (20,372)$ (23,522)$
GENERAL REVENUES AND OTHER CHANGES
IN NET POSITION
Governmental Activities:
Taxes:
Property Taxes 11,284$ 11,991$ 12,452$ 13,764$ 13,302$
Transient Occupancy Tax 3,790 4,250 4,812 5,197 5,601
Franchise Taxes 1,907 1,998 2,045 2,045 1,985
Utility User Taxes 2,481 2,510 1,973 1,866 1,775
Other Taxes 778 1,589 1,564 1,179 365
Intergovernmental Revenue - Shared Sales Tax 1,588 1,642 1,758 2,104 2,463
Investment Income 184 94 122 214 434
Other 929 4,146 3,231 2,608 920
Transfers (8,293) - (458) - -
Extraordinary Item (19,289) - - - -
Total Governmental Activities (4,641) 28,220 27,499 28,977 26,845
Business-Type Activities:
Investment Income 10 11 10 21 35
Other - - - - -
Transfers 8,293 - 458 - 3
Total Business-Type Activities 8,303 11 468 21 38
Total Primary Government 3,662$ 28,231$ 27,967$ 28,998$ 26,883$
CHANGE IN NET POSITION
Governmental Activities (21,545)$ 11,092$ 7,367$ 7,868$ 4,713$
Business-Type Activities 11,159 6,828 1,627 759 (1,351)
Total Primary Government Net Expense (10,386)$ 17,920$ 8,994$ 8,627$ 3,362$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(113)
EXPENSES
Governmental Activities:
Administration
Public Safety
Public Works
Parks and Recreation
Community Development
Non-Departmental
Interest on Long-Term Debt
Total Governmental Activities Expenses
Business-Type Activities:
Water Quality Flood Protection
Total Primary Government Expenses
PROGRAM REVENUES
Governmental Activities:
Charges for Services:
Administration
Public Safety
Public Works
Parks and Recreation
Community Development
Non-Departmental
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business-Type Activities:
Charges for Services:
Water Quality Flood Protection
Operating Grants and Contributions
Capital Grants and Contributions
Total Business-Type Activities Program Revenues
Total Primary Government Program Revenues
Net (Expense) Revenue:
Governmental Activities
Business-Type Activities
Total Primary Government Net Expense
GENERAL REVENUES AND OTHER CHANGES
IN NET POSITION
Governmental Activities:
Taxes:
Property Taxes
Transient Occupancy Tax
Franchise Taxes
Utility User Taxes
Other Taxes
Intergovernmental Revenue - Shared Sales Tax
Investment Income
Other
Transfers
Extraordinary Item
Total Governmental Activities
Business-Type Activities:
Investment Income
Other
Transfers
Total Business-Type Activities
Total Primary Government
CHANGE IN NET POSITION
Governmental Activities
Business-Type Activities
Total Primary Government Net Expense
2018 2019 2020 2021 2022
7,258$ 6,563$ 8,013$ 8,476$ 9,183$
7,339 7,214 7,360 7,251 7,293
16,073 16,064 18,182 15,885 17,360
2,736 3,064 2,857 2,979 3,877
2,726 3,052 2,857 2,624 3,094
1,166 1,134 1,192 - -
- - - - 36
37,298 37,091 40,461 37,215 40,843
1,071 811 - - -
38,369$ 37,902$ 40,461$ 37,215$ 40,843$
1,032$ 1,065$ 1,064$ 776$ 936$
124 104 111 245 232
659 227 309 215 216
2,083 766 579 412 739
729 2,130 1,793 1,931 3,171
- - - - -
4,481 4,608 4,605 5,087 6,738
769 1,137 625 1,254 1,731
9,877 10,037 9,086 9,920 13,763
- - - - -
- - - - -
- - - - -
- - - - -
9,877$ 10,037$ 9,086$ 9,920$ 13,763$
(27,421)$ (27,054)$ (31,375)$ (27,295)$ (27,080)$
(1,071) (811) - - -
(28,492)$ (27,865)$ (31,375)$ (27,295)$ (27,080)$
13,762$ 14,350$ 14,994$ 15,966$ 16,638$
5,615 5,645 3,910 3,116 6,170
1,838 2,150 2,146 2,203 2,278
403 1,917 1,912 2,246 2,526
2,520 429 395 633 733
2,129 2,661 2,163 1,919 2,782
838 1,313 1,225 676 (430)
763 909 626 835 883
- 34,258 - - -
- - - - -
27,868 63,632 27,371 27,594 31,580
29 - - - -
- 200 - - -
- (34,258) - - -
29 (34,058) - - -
27,897$ 29,574$ 27,371$ 27,594$ 31,580$
447$ 36,578$ (4,004)$ 299$ 4,500$
(1,042) (34,869) - - -
(595)$ 1,709$ (4,004)$ 299$ 4,500$
(114)
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF RANCHO PALOS VERDES, CALIFORNIA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(115)
Transient Utility
Fiscal Property Occupancy Sales Franchise Users Other
Year Tax Tax Tax Tax Tax Taxes Total
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
2020 14,184 3,910 2,163 2,146 1,912 1,291 25,606
2021 15,082 3,116 1,919 2,203 2,246 1,308 25,874
2022 15,742 6,170 2,782 2,278 2,526 1,465 30,963
Source
City General Ledger
CITY OF RANCHO PALOS VERDES, CALIFORNIA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(116)
2013 2014 2015 2016 2017
GENERAL FUND
Non-Spendable 138$ 144$ 598$ 564$ 190$
Restricted - - - - -
Committed - - - 802 964
Assigned - - - - -
Unassigned 14,370 15,474 16,055 13,702 15,671
Total General Fund 14,508$ 15,618$ 16,653$ 15,068$ 16,825$
ALL OTHER GOVERNMENTAL FUNDS
Non-Spendable:
Special Revenue Funds -$ -$ -$ -$ -$
Capital Projects Funds - - - - -
Permanent Fund 1,835 1,845 1,855 1,866 1,877
Restricted:
Special Revenue Funds 7,849 8,445 8,362 9,757 11,702
Capital Projects Funds - - - 3,000 4,660
Permanent Fund 280 1,502 1,492 1,312 1,148
Committed:
Special Revenue Funds 36 58 55 353 -
Capital Projects Funds - - - 3,467 -
Assigned:
Special Revenue Funds - 794 572 476 479
Capital Projects Funds 13,084 18,535 21,078 23,902 23,149
Unassigned:
Special Revenue Funds (198) (116) (59) - -
Total All Other Governmental Funds 22,885$ 31,063$ 33,355$ 44,133$ 43,015$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(117)
GENERAL FUND
Non-Spendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
ALL OTHER GOVERNMENTAL FUNDS
Non-Spendable:
Special Revenue Funds
Capital Projects Funds
Permanent Fund
Restricted:
Special Revenue Funds
Capital Projects Funds
Permanent Fund
Committed:
Special Revenue Funds
Capital Projects Funds
Assigned:
Special Revenue Funds
Capital Projects Funds
Unassigned:
Special Revenue Funds
Total All Other Governmental Funds
2018 2019 2020 2021 2022
913$ 1,016$ 249$ 1,142$ 1,462$
- - - - -
715 341 167 2,785 447
- - - - -
16,450 19,431 21,333 21,872 29,454
18,078$ 20,788$ 21,749$ 25,799$ 31,363$
-$ -$ -$ -$ -$
- - - - -
1,889 1,902 1,915 1,926 1,750
12,825 10,437 10,420 9,489 11,593
1,438 2,946 2,458 1,799 9,132
1,148 885 800 593 421
- - - - -
- - - - 4,455
- - - - -
23,942 25,100 23,965 25,752 25,710
- (564) (215) (219) (121)
41,242$ 40,706$ 39,343$ 39,340$ 52,940$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(118)
2013 2014 2015 2016 2017
REVENUES
Taxes 22,543$ 23,981$ 24,603$ 25,725$ 25,491$
Licenses and Permits 2,027 1,951 2,515 2,383 3,044
Revenues from Other Agencies 3,395 5,301 3,794 3,443 5,117
Charges for Services 141 323 427 558 1,072
Fines and Forfeitures 117 128 135 180 153
Use of Money and Property 1,383 846 653 750 415
Donation 445 - - - -
Other Revenues 741 3,068 2,377 1,668 732
Total Revenues 30,791 35,598 34,504 34,707 36,024
EXPENDITURES
Administration 5,401 5,792 5,135 6,183 5,445
Public Safety 4,348 4,492 4,761 5,215 6,534
Public Works 7,240 7,611 8,042 7,961 9,084
Parks and Recreation 1,557 1,573 1,819 2,042 2,175
Community Development 2,591 2,640 2,870 2,619 2,664
Non-Departmental - 35 190 238 2,400
Capital Outlay 2,721 4,113 8,697 1,344 7,106
Debt Service:
Principal - - - - -
Interest - - - - -
Total Expenditures 23,857 26,256 31,514 25,602 35,408
Excess of Revenues Over (Under)
Expenditures 6,934 9,342 2,990 9,105 616
OTHER FINANCING SOURCES (USES)
Debt Proceeds - - - - -
Transfers In 7,954 10,424 13,525 11,784 4,577
Transfers Out (16,247) (10,479) (13,188) (11,784) (4,577)
Total Other Financing Sources (Uses)(8,293) (55) 337 - -
EXTRAORDINARY GAIN (LOSS)(6,743) - - - -
NET CHANGE IN FUND BALANCES (8,102)$ 9,287$ 3,327$ 9,105$ 616$
Cost of Assets Capitalized 2,022 4,820 8,490 2,398 8,228
Debt Services as a percentage of Non-Capital
Expenditures 0.0%0.0%0.0%0.0%0.0%
CITY OF RANCHO PALOS VERDES, CALIFORNIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
(119)
REVENUES
Taxes
Licenses and Permits
Revenues from Other Agencies
Charges for Services
Fines and Forfeitures
Use of Money and Property
Donation
Other Revenues
Total Revenues
EXPENDITURES
Administration
Public Safety
Public Works
Parks and Recreation
Community Development
Non-Departmental
Capital Outlay
Debt Service:
Principal
Interest
Total Expenditures
Excess of Revenues Over (Under)
Expenditures
OTHER FINANCING SOURCES (USES)
Debt Proceeds
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
EXTRAORDINARY GAIN (LOSS)
NET CHANGE IN FUND BALANCES
Cost of Assets Capitalized
Debt Services as a percentage of Non-Capital
Expenditures
2018 2019 2020 2021 2022
26,266$ 28,098$ 26,416$ 26,758$ 31,859$
3,095 2,205 1,917 2,007 3,338
5,345 5,158 5,442 5,883 8,672
1,113 215 203 193 229
144 331 365 675 518
714 1,656 1,446 828 (67)
- - - - -
1,038 1,026 1,009 615 858
37,715 38,689 36,798 36,959 45,407
5,867 5,581 6,319 5,456 5,316
7,399 7,214 7,360 7,251 7,293
11,068 13,546 12,260 9,681 10,498
2,493 2,769 2,548 2,662 3,162
2,736 3,052 2,857 2,624 3,094
1,167 1,134 1,204 1,814 2,094
7,504 3,291 4,653 3,424 2,777
- - - - 8
- - - - -
38,234 36,587 37,201 32,912 34,242
(519) 2,102 (403) 4,047 11,165
- - - - 8,000
5,044 6,027 2,924 1,881 5,094
(5,044) (5,954) (2,924) (1,881) (5,094)
- 73 - - 8,000
- - - - -
(519)$ 2,175$ (403)$ 4,047$ 19,165$
8,228 5,496 4,058 3,202 1,673
0.0%0.0%0.0%0.0%0.0%
CITY OF RANCHO PALOS VERDES, CALIFORNIA
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(120)
Fiscal
Year Residential Commercial Industrial Other Unsecured
End Property Property Property Property Property
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
2020 12,466,277 597,016 3,857 556,186 26,416
2021 12,995,604 612,892 3,934 615,222 26,419
2022 13,521,184 619,529 3,974 558,780 25,134
Source
2010-2013 & 2006-2007 County Assessor data, Avenu Insights & Analytics
Unitary value of $980,000 is excluded.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(121)
City Estimated Factor of Assessed
Fiscal Less Taxable Direct Actual Taxable Value as a
Year Tax-Exempt Assessed Tax Taxable Assessed Percentage of
End Property Value Rate (1)Value (2)Value (3)Actual Value
2013 174,167$ 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%
2020 171,367 13,478,385 0.063728 17,927,678 1.33011 75.18%
2021 147,361 14,106,710 0.063728 18,817,832 1.33396 74.96%
2022 187,319 14,541,282 0.063728 20,946,674 1.44050 69.42%
Source
2010-2013 & 2006-2007 County Assessor data, Avenu Insights & Analytics
Unitary value of $980,000 is excluded.
(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.
Based on these calculations a factor was extrapolated and applied to current assessed values.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(122)
2012-13 2013-14 2014-15 2015-16 2016-17
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 0.024102 0.023109 0.023289 0.023433 0.023197
COMMNTY COLLEGE 0.048750 0.044541 0.040174 0.035755 0.035956
PALOS VERDES LIB 0.006441 0.006118 0.005854 0.005630 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 0.082793 0.077268 0.072817 0.068318 0.062653
Total Tax Rate 1.082793 1.077268 1.072817 1.068318 1.062653
Source
2010-2015 County Assessor data, Avenu Insights & Analytics
City has no separate debt service rate, direct rate is 100% operating.
TRA 149 is represented for this report.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
PROPERTY TAX RATES (CONTINUED)
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(123)
City Direct Rate
All Other Direct Rates:
LA COUNTY GENERAL
LA COUNTY ACCUM CAP OUTLAY
CONSOL. FIRE PRO.DIST OF LA CO.
LA CO. FIRE-FFW
LA CO.FL.CON.DR.IMP.DIST.MAINT.
LA CO FLOOD CONTROL MAINT
PALOS VERDES LIBRARY DIST MAINT
LA CO WEST VECTOR CONTROL DIST.
CO SANITATION DIST NO 5 OPERAT
WTR REPLENISHMENT DIST OF SO CAL
ERAF
EDUCATIONAL AUG FD IMPOUND
COUNTY SCHOOL SERVICES
CHILDREN'S INSTIL TUITION FUND
LA CITY COMM COLLEGE DIST
LA COMM COLL CHILDREN'S CTR FD
PALOS VERDES PENINSULA USD
CO.SCH.SERV.FD-LOS ANGELES
DEV.CTR.HDCPD MINOR-LA UNIF.
Total
Debt Service Rates:
COUNTY
PALOS VERDES PEN USD
COMMNTY COLLEGE
PALOS VERDES LIB
FLOOD CONTROL
METRO WATER DIST
Total
Total Tax Rate
Source
2010-2015 County Assessor data, Avenu Insights & Analytics
City has no separate debt service rate, direct rate is 100% operating.
TRA 149 is represented for this report.
2017-18 2018-19 2019-20 2020-21 2021-22
0.063728 0.063728 0.063728 0.056804 0.056804
0.441223 0.441223 0.441223 0.257974 0.257974
0.000110 0.000110 0.000110 0.000110 0.000110
0.169715 0.169715 0.169715 0.169715 0.169715
0.006910 0.006910 0.006910 0.006910 0.006910
0.002597 0.002597 0.002597 0.001649 0.001649
0.014699 0.014699 0.014699 0.009331 0.009331
0.043470 0.043470 0.043470 0.032481 0.032481
0.000319 0.000319 0.000319 0.000190 0.000190
0.017499 0.017499 0.017499 0.011678 0.011678
0.000181 0.000181 0.000181 0.000178 0.000178
0.000000 0.000000 0.000000 0.072466 0.072466
0.000000 0.000000 0.000000 0.140966 0.140966
0.001369 0.001369 0.001369 0.001369 0.001369
0.002717 0.002717 0.002717 0.002717 0.002717
0.029214 0.029214 0.029214 0.029214 0.029214
0.000302 0.000302 0.000302 0.000302 0.000302
0.196986 0.196986 0.196986 0.196986 0.196986
0.008085 0.008085 0.008085 0.008085 0.008085
0.000876 0.000876 0.000876 0.000876 0.000876
1.000000 1.000000 1.000000 1.000000 1.000000
0.000000 0.000000 0.000000 0.000000 0.000000
0.023093 0.023709 0.023589 0.023782 0.023978
0.045990 0.046213 0.027175 0.040162 0.043759
0.000000 0.000000 0.000000 0.000000 0.000000
0.000000 0.000000 0.000000 0.000000 0.000000
0.003500 0.003500 0.003500 0.003500 0.003500
0.072583 0.073422 0.054264 0.067444 0.071237
1.072583 1.073422 1.054264 1.067444 1.071237
CITY OF RANCHO PALOS VERDES, CALIFORNIA
PRINCIPAL PROPERTY TAX PAYERS
LAST FISCAL YEAR AND NINE YEARS AGO
(AMOUNTS EXPRESSED IN THOUSANDS)
(124)
Percentage of Percentage of
Taxable Total City Taxable Taxable Total City Taxable
Taxpayer Value ($) Rank Value (%)Value ($) Rank Value (%)
Long Point Development LLC 483,081 1 3.32%332,529 1 3.43%
GS Palos Verdes LLC 115,996 2 0.80%
ROIC California LLC 71,237 3 0.49%
P V Victoria Apartments LLC 55,922 4 0.38%55,973 3 0.58%
6507 6510 Vista Catalina Apts 43,903 5 0.30%
Western Riviera Investors Et Al 34,517 6 0.24%29,917 6 0.31%
Golden Cove Center LLC 32,364 7 0.22%27,890 7 0.29%
Ocean View Drive Inc 28,925 8 0.20%
Belmont Village RPV LP 27,304 9 0.19%22,848 10 0.24%
Johnson Cory C Et Al Trs 20,079 10 0.14%
California Water Service Co 18,198 11 0.13%9,111 16 0.09%
VH Property Corp 17,476 12 0.12%
WLP Westmont Plaza LLC 16,761 13 0.12%
Wang Lisa 11,797 14 0.08%7,150 22 0.07%
Peacock Flats LLC 10,500 15 0.07%
Chang Jacqueline 10,101 16 0.07%
VHPS LLC 9,918 17 0.07%48,586 4 0.50%
American Golf, Inc 9,640 18 0.07%
Victoria Apartments 9,255 19 0.06%
Thornecrest LLC 9,243 20 0.06%
Green Sticks Lp 9,068 21 0.06%
WEI LAI Development LLC 8,892 22 0.06%
Parks John 8,800 23 0.06%
XCX Bear LLC 8,644 24 0.06%
Brunning Fred W Co Tr 8,616 25 0.06%7,425 20 0.08%
PPC Villas Rpv LLC 65,374 2 0.67%
Terraces Rancho Palos Verdes 36,122 5 0.37%
BVF II Madison LLC 23,531 8 0.24%
Terranea Resort Spa 23,175 9 0.24%
Johnson Eric C 16,266 11 0.17%
Tridiamond LLC 13,680 12 0.14%
American Golf, Inc 10,977 13 0.11%
Sadeghi Fatolah Flora 10,823 14 0.11%
Vanderlip Investment Co 10,406 15 0.11%
First Citizens Bank Trust Co 8,670 17 0.09%
Palos Verde Terrace Ltd.7,815 18 0.08%
Briles Richard Keanna 7,546 19 0.08%
Kariger Brian P 7,189 21 0.07%
Amdan Investment LLC Lessee 6,550 23 0.07%
Labarba James G 6,256 24 0.06%
Gerts Igor Anna 6,090 25 0.06%
Total Top 25 Taxpayers 1,080,236$ 7.43%801,899$ 8.26%
Total Taxable Value 14,541,282$ 100.00%9,704,237$ 100.00%
Source
2021-22 2012-13
CITY OF RANCHO PALOS VERDES, CALIFORNIA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(125)
Collected within the
Fiscal Year of the Levy Total Collections to Date
Total Tax Collections in
Fiscal Levy for Percentage Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2012-13 5,951 5,844 98.20% 0 5,844 98.20%
2013-14 6,287 6,193 98.50% 0 6,193 98.50%
2014-15 6,487 6,396 98.60% 0 6,396 98.60%
2015-16 6,813 6,716 98.58% 0 6,716 98.58%
2016-17 7,093 7,009 98.82% 0 7,009 98.82%
2017-18 7,481 7,389 98.77% 0 7,389 98.77%
2018-19 7,888 7,782 98.66% 0 7,782 98.66%
2019-20 8,290 8,017 96.71% 0 8,017 96.71%
2020-21 8,674 8,526 98.29% 0 8,526 98.29%
2021-22 8,931 8,790 98.42% 0 8,790 98.42%
Source
County Assessor General Ledger, MuniServices, LLC / Avenu Insights & Analytics
* Includes 1% secured apportionment only
(126)
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF RANCHO PALOS VERDES, CALIFORNIA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
CURRENT YEAR
(127)
2021-22 Assessed Valuation: $14,606,755,203
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT 6/30/2022 % Applicable (1) Debt 6/30/22
Metropolitan Water District $20,175,000 0.431% $86,954
Los Angeles Community College District 4,146,515,000 1.460% 60,539,119
Los Angeles Unified School District 10,770,060,000 0.173%18,632,204
Palos Verdes Unified School District 45,869,791 46.876%21,501,923
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $100,760,200
Less: Los Angeles Unified School District General Obligation Bonds,
Election of 2005, Series J (2010) Qualified School Construction Bonds:
Amount accumulated in Interest and Sinking Fund and Set Asides for Repayment 267,921
TOTAL NET OVERLAPPING TAN AND ASSESSMENT DEBT $100,492,279
DIRECT AND OVERLAPPING GENERAL FUND DEBT
Los Angeles County General Fund Obligations $2,698,357,105 0.824%$22,234,463
Los Angeles County Superintendent of Schools Certificates of Participation 3,972,227 0.824%32,731
Los Angeles County Sanitation District No. 5 Authority 2,481,534 9.901%245,697
Los Angeles County South Bay Cities Sanitation District Authority 422,802 4.047%17,111
Los Angeles Unified School District Certificates of Participation 120,710,000 0.173%208,828
City of Rancho Palos Verdes General Fund Obligations 8,000,000 100.0%8,000,000
TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $30,738,830
TOTAL DIRECT DEBT $8,000,000
TOTAL GROSS OVERLAPPING DEBT $123,499,030
TOTAL NET OVERLAPPING DEBT $123,231,109
GROSS COMBINED TOTAL DEBT $131,499,030
NET COMBINED TOTAL DEBT $131,231,109
(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.
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2021-22 Assessed Valuation:
Total Gross Overlapping Tax and Assessment Debt 0.69%
Total Net Overlapping Tax and Assessment Debt 0.69%
Direct Direct Debt ($8,000,000)0.05%
Gross Combined Total Debt 0.90%
Net Combined Total Debt 0.90%
Source
Avenu Insights & Analytics
CITY OF RANCHO PALOS VERDES, CALIFORNIA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
FISCAL YEAR
(128)
2013 2014 2015 2016 2017
Debt Limit 1,382,850$ 1,533,583$ 1,583,404$ 1,677,723$ 1,749,390$
Total Net Debt Applicable to Limit - - - - -
Legal Debt Margin 1,382,850$ 1,533,583$ 1,583,404$ 1,677,723$ 1,749,390$
Total Net Debt Applicable to the Limit as
a Percentage of Debt Limit 0%0%0%0%0%
Cities have a maximum G.O. debt limit of 15% of the assessed valuation of all property within their boundaries.
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, CALIFORNIA
LEGAL DEBT MARGIN INFORMATION (CONTINUED)
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
FISCAL YEAR
(129)
Debt Limit
Total Net Debt Applicable to Limit
Legal Debt Margin
Total Net Debt Applicable to the Limit as
a Percentage of Debt Limit
Cities have a maximum G.O. debt limit of 15% of
2018 2019 2020 2021 2022
1,832,345$ 1,935,260$ 2,021,758$ 2,116,007$ 2,181,192$
- - - - -
1,832,345$ 1,935,260$ 2,021,758$ 2,116,007$ 2,181,192$
0%0%0%0%0%
Total Taxable Value 14,541,282$
Debt Limit (15% of Total Taxable Value)2,181,192
Debt Applicable to Limit -
Legal Debt Margin 2,181,192$
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, CALIFORNIA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(130)
Per Capita **Public
Fiscal Personal Personal Median School
Year Population (1)Income (2)Income (2)Age Enrollment
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
2019-20 41,731 2,917,361,629 69,909 49.7 11,009
2020-21 41,541 3,134,652,289 75,459 50.0 10,503
2021-22 41,468 3,594,201,164 86,674 49.8 10,432
Source
MuniServices, LLC / Avenu Insights & Analytics
The California Department of Finance demographics estimates now incorporate 2010 Census
counts as the benchmark.
(1) Population Projections are provided by the California Department of Finance Projections.
(2) Income Data is provided by the U.S. Census Bureau.
(3) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department
** 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, CALIFORNIA
DEMOGRAPHIC AND ECONOMIC STATISTICS (CONTINUED)
LAST TEN FISCAL YEARS
(131)
County City City
Fiscal Unemployment Unemployment County Population
Year Rate (%) (3)Rate (%) (3)Population (1)(% of County)
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%
2019-20 20.6%13.2%10,172,951 0.41%
2020-21 12.8%8.2%10,044,458 0.41%
2021-22 4.5%3.0%9,861,224 0.42%
Source
Avenu Insights & Analytics
The California Department of Finance demographics estimates now incorporate 2010 Census counts
as the benchmark.
(1) Population Projections are provided by the California Department of Finance Projections.
(2) Income Data is provided by the U.S. Census Bureau.
(3) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
PRINCIPAL SALES TAX PRODUCERS
LAST FISCAL YEAR AND NINE YEARS AGO
(132)
2021-22 2012-13
Taxpayer Business Type Taxpayer Business Type
7-Eleven Food Stores & Service Stations Service Stations 7-Eleven Food Stores Service Stations
7-Eleven Food Stores Food Markets Admiral Risty Restaurant Restaurants
American Golf Corporation Miscellaneous Retail America's Tire Auto Parts/Repair
Audio Visual Services Group Light Industry Asaka Japanese Cuisine Restaurants
Avenue Italy Restaurants Carl's Jr. Restaurants Restaurants
Blue Crab Steak & Seafood Restaurant Restaurants Centinela Feed & Pet Supplies Florist/Nursery
California Chemical Chemical Products Chevron Service Stations Service Stations
Centinela Feed & Pet Supplies Florist/Nursery Coco's Bakery Restaurant Restaurants
Custom Container Storage & Rental Light Industry Denny's Restaurant Restaurants
G & M Service Stations Service Stations El Pollo Loco Restaurants
Good Night Mattress & Bedroom Furniture/Appliance Good Night Mattress & Bedroom Furniture/Appliance
Granvia Tomatillo Service Center Service Stations Green Hills Memorial Park Miscellaneous Other
Green Hills Memorial Park Miscellaneous Other Hughe's Market Food Markets
Highridge Car Wash Auto Parts/Repair Jack In The Box Restaurants Restaurants
Marshall's Stores Apparel Stores Los Verdes County Club Restaurants
O'Reilly Auto Parts Auto Parts/Repair Marie Callender's Restaurant Restaurants
Smart & Final Food Markets Marshall's Stores Apparel Stores
Southern California Discount Tire Auto Parts/Repair Mobil Service Stations Service Stations
Swan Thai RPV Restaurants O'Reilly Auto Parts Auto Parts/Repair
Terranea Resort Restaurants Smart & Final Food Markets
The Mortuary at Green Hills Miscellaneous Other Swank Audio Visuals Electronic Equipment
Trader Joe's Food Markets Terranea Resort Restaurants
Trump National Golf Club Miscellaneous Retail The Mortuary at Green Hills Miscellaneous Other
Western Tobacco Miscellaneous Retail Trader Joe's Food Markets
Whole Investment Restaurants Trump National Golf Club Miscellaneous Retail
Source
MuniServices, LLC / Avenu Insights & Analytics
CITY OF RANCHO PALOS VERDES, CALIFORNIA
PRINCIPAL EMPLOYERS
LAST FISCAL YEAR AND NINE YEARS AGO
(133)
2021-22 2012-13
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Palos Verdes Peninsula Unified School District 1,370 1 7.21%1,970 1 9.47%
Terranea Resort Hotel*605 2 3.18%730 2 3.51%
The Salvation Army College/Western Territorial HQ- USA* 251 3 1.32%
The Canterbury Retirement Community 165 4 0.87%115 6 0.55%
Belmont Corp LTD (Belmont Village of Rancho)162 5 0.85%111 7 0.53%
Ralphs Store #720 110 6 0.58%83 9 0.40%
Trump National Golf Club*95 7 0.50%260 3 1.25%
City of Rancho Palos Verdes*89 8 0.47%
Green Hills Memorial Park 84 9 0.44%80 10 0.38%
American Golf Corp (Los Verdes Golf Course)65 10 0.34%
Marymount College 220 4 1.06%
Keller Williams Realty 163 5 0.78%
Trader Joe's 88 8 0.42%
Subtotal of Principal Employers 2,996 15.77%3,820 18.37%
Total City Employment (1)19,000 20,800
Source
MuniServices, LLC / an Avenu Insights & Analytics Company
Results based on direct correspondence with city’s local businesses.
(1) Total City Labor Force is provided by EDD Labor Force Data
* Count includes both full and part time employees
(134)
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CITY OF RANCHO PALOS VERDES, CALIFORNIA
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
(135)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
General Government 53 54 60 62 62 64 60 61 62 63
Part-Time Staff (1) 16222529293029262725
Total 69768591919489878988
Source
City Budget documents and Payroll records
(1) Full-Time Equivalent
CITY OF RANCHO PALOS VERDES, CALIFORNIA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
(136)
Function 2013 2014 2015 2016 2017
Administration:
Employee Resignations (5)7 14 10 6 6
Workers Compensation Claims 3 1 3 2 8
Liability Claims (6)14 9 11 28 6
Budget Adjustments 24 15 15 18 48
Business Licenses Issued 1,868 1,997 2,134 2,012 1,939
Web Site Page Views (1)3.1mil 3.3mil 426,772 *403,704 536,568
Public Safety:
Part I Crime Rates (per 10,000
population)149 107 134 106 97
Public Works:
Solid Waste Diversion Rates (2)2.87lbs/person/day 2.84lbs/person/day 3.15lbs/person/day 3.08lbs/person/day 2.46lbs/person/day
Pavement Rating 84 82 82 84 84
Parks and Recreation:
Park Events 765 631 639 810 829
Class Meetings at Parks 1,202 1,233 1,400 1,025 1,030
Docent Led Nature Hikes 121 109 103 94 108
Volunteer Events (3)DNA DNA DNA DNA 35
Volunteers (3)DNA DNA DNA DNA 764
Volunteer Hours (3)DNA DNA DNA DNA 2,486
Open Space Mgmt. Public
Contacts (3)DNA DNA DNA DNA 23,101
Open Space Mgmt. Rules
Enforced (3)DNA DNA DNA DNA 1,367
Open Space Mgmt. Maintenance /
Projects (3)(4)DNA DNA DNA DNA 782
Community Development:
Building Permits Processed 1,403 1,492 1,558 1,758 1,665
Plan Checks 268 264 255 289 289
Municipal Code Violations Closed 312 392 358 505 432
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% of generation in 2003 through 2006, expressed in terms of per capital disposal.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
OPERATING INDICATORS BY FUNCTION (CONTINUED)
LAST TEN FISCAL YEARS
(137)
Function 2018 2019 2020 2021 2022
Administration:
Employee Resignations (5)27 23 30 34 44
Workers Compensation Claims 21117
Liability Claims 30118 20
Budget Adjustments 80 91 98 113 79
Business Licenses Issued 1,902 1,971 1,776 1,898 1,950
Web Site Page Views (1)445,633 450,206 657,040 808,722 609,862
Public Safety:
Part I Crime Rates (per 10,000
population)113 99 109 100 114
Public Works:
Solid Waste Diversion Rates (2)2.46lbs/person/day 5.6lbs/person/day 5.7lbs/person/day 5.7lbs/person/day 5.7lbs/person/day
Pavement Rating 84 89 89 89 87
Parks and Recreation:
Park Events 1,281 1,122 807 243 573
Class Meetings at Parks 922 852 520 375 566
Docent Led Nature Hikes 113 104 37 0 0
Volunteer Events (3)61 46 37 3 31
Volunteers (3)1,806 1,095 974 100 661
Volunteer Hours (3)5,919 3,569 2,724 252 1,729
Open Space Mgmt. Public
Contacts (3)33,306 29,973 29,786 38,476 31,352
Open Space Mgmt. Rules
Enforced (3)1,925 1,262 1,876 2,113 4,687
Open Space Mgmt. Maintenance /
Projects (3)(4)1,219 546 0 0 0
Community Development:
Building Permits Processed 1,985 2,186 1,933 2,048 2,256
Plan Checks 292 288 256 268 358
Municipal Code Violations Closed 457 338 275 171 448
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% of generation in 2003 through 2006, expressed in terms of per capital disposal.
(3) Began tracking this indicator in 2017.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
(138)
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Administration:
Computer Workstations 93 98 114 138 140 144 144 155 155 160
Public Safety (1)
Public Works:
Street Miles 141 141 149 149 149 149 150.1 150.1 151.1 151.1
Traffic Signals 15151515151515151617
Parks and Recreation:
Parks 15161616161717171717
Community Development:
Vehicles Used for
Inspections 5444224444
Source
City Capital Asset Records
Public safety services are contracted with other agencies. The City does not own any public safety capital assets.