CAFR FY 2013-1411
CITY OF RANCHO PALOS VERDES
C ALIF OR NIA 41".
COMPREHENSIVE
FINANCIAL REPORT
FISCALLYEAR ENDED
'JUNE 30, 2014
CITY OF RANCHO PALOS VERDES,
CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2014
Prepared By:
Finance Department
Dennis McLean, Director
Kathryn Downs, Deputy Director
INTRODUCTORY SECTION
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2014
TABLE OF CONTENTS
INTRODUCTORY SECTION
Table of Contents i -iii
Letter of Transmittal iv-xii
Directory of City Officials xiv
Organization Chart xv
GFOA Certificate of Achievement for Excellence in Financial
Reporting xvi
FINANCIAL SECTION
Independent Auditor's Report
Management Discussion and Analysis
Government -Wide Financial Statements
Statement of Net Position
Statement of Activities
3
7
19
20
Fund Financial Statements
Governmental Funds
Balance Sheet 22
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position 24
Statement of Revenues, Expenditures, and Changes in Fund
Balances 26
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities 28
General Fund
Statement of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual 29
Street Maintenance Special Revenue Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
- Budget and Actual 31
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2014
TABLE OF CONTENTS
Proprietary Funds
Statement of Net Position 32
Statement of Revenues, Expenses, and Changes in Fund Net
Position 33
Statement of Cash Flows 34
Fiduciary Funds
Statement of Fiduciary Net Position 35
Statement of Changes in Fiduciary Net Position 36
Notes to the Financial Statements 38
Supplementary Information
Major Fund Budgetary Comparison Schedules
Schedule of Revenues, Expenditures, and Change in Fund Balances -
Budget and Actual
Capital Improvements Capital Projects Fund
70
Non -Major Governmental Funds
Combining Balance Sheet 74
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances 82
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual
Special Revenue Funds
1972 Act Fund 90
El Prado Fund 91
1911 Act Fund 92
Beautification Fund 93
Waste Reduction Fund 94
Air Quality Management Fund 95
Proposition C Fund 96
Proposition A Fund 97
Public Safety Grants Fund 98
Measure R 99
Measure A Fund 100
Abalone Cove Sewer Assessment District 101
Dr. Allen and Charlotte Ginsburg Cultural Arts Building 102
Donor Restricted Contributions 103
JPIA — Portuguese Bend Fund 104
Community Development Block Grant 105
Quimby Fund 106
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CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2014
TABLE OF CONTENTS
Environmental Excise Tax Fund 107
Bikeways Fund 108
Capital Projects Funds
Low -Moderate Income Housing Capital Projects Fund 109
City Affordable Housing In -Lieu Capital Projects Fund 110
Permanent Funds
Habitat Restoration Fund 111
Subregion One Maintenance Fund 112
JPIA — Abalone Cove Fund 113
Internal Service Funds
Combining Statement of Net Position 116
Combining Statement of Revenues, Expenses, and Changes in Fund
Net Position 117
Combining Statement of Cash Flows 118
STATISTICAL SECTION (Unaudited)
Financial Trends
Net Position by Component 121
Changes in Net Position 122
Governmental Activities Tax Revenue By Source 124
Fund Balances of Governmental Funds — Before GASB 54 125
Fund Balances of Governmental Funds — After GASB 54 126
Changes in Fund Balances of Governmental Funds 127
General Governmental Tax Revenues By Source 128
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 129
Property Tax Rates - Direct and Overlapping Governments 130
Principal Property Tax Payers 131
Property Tax Levies and Collections 132
Debt Capacity
Direct and Overlapping Governmental Activities Debt 133
Legal Debt Margin Information 134
Demographic and Economic Information
Demographic and Economic Statistics 135
Principal Sales Tax Producers 136
Principal Employers 137
Operating Information
Full-time Equivalent City Government Employees by Function 138
Operating Indicators by Function 139
Capital Asset Statistics by Function 140
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1:
RANCHO PALOS VERDES
December 18, 2014
Honorable Mayor and City Council
City of Rancho Palos Verdes
Rancho Palos Verdes, California
The Comprehensive Annual Financial Report (CAFR) of the City of Rancho Palos Verdes
for the fiscal year ended June 30, 2014, 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.
The financial section of the CAFR includes management's discussion and analysis(MD&A)
of the financial activity. This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it.
The financial reporting entity (the government) includes all the funds of the primary
government (i.e., the City of Rancho Palos Verdes as legally defined), as well as its
component 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
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the State of California and various school districts, from the financial reporting entity
because they do not meet the established criteria for inclusion.
GOVERNMENTAL STRUCTURE
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 42,000. The City is primarily a "bedroom" community with relatively
little commercial activity.
The City has operated under the council-manager form of government since incorporation.
Policy-making and legislative authority are vested in the governing City Council, which
consists of five Council Members, including the Mayor and Mayor Pro -Tem. The City
Council is responsible, among other things, for passing ordinances, adopting the budget,
appointing committees and hiring the City Manager and the City Attorney. The City
Manager is responsible for carrying out the policies and ordinances of the City Council, for
overseeing the day-to-day operations of the City, and for appointing the heads of the City's
departments. The City Council is elected on a non-partisan, at -large basis. Council
Members are elected to four-year staggered terms with two or three Council Members
elected every two years. The City Council designates the Mayor and Mayor Pro -Tem for a
one-year term.
MAJOR INITIATIVES
The City's staff, following specific directives of the City Council and the City Manager, has
been involved in a variety of projects throughout the year. These projects reflect the City's
commitment to ensuring that its citizens are able to live and work in an enviable
environment.
Community Development
• The City together with the Palos Verdes Peninsula Land Conservancy continued
management of the City's Natural Communities Conservation Plan (NCCP) Preserve
through implementation of the City Council approved Public Use Master Plan (PUMP)
for the entire Preserve, and continued several on-going habitat restoration and trail
improvement projects.
• Continued to take steps to update the City's General Plan by obtaining Planning
Commission approval of the updated text for the entirety of the Plan as well as all the
proposed General Plan Land Use Map changes. The CEQA analysis for the updated
Plan now needs to be completed and presented to the Planning Commission. Staff
anticipates that the Planning Commission will complete their review and forward the
Draft Updated General Plan to the City Council sometime in 2015.
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• Continued to ensure that the various housing programs within the Housing Element are
being implemented. Additionally, staff obtained approval of a mandatory update to the
Housing Element by the State Department of Housing and Community Development.
• Continued to implement the approved Coast Vision Plan, a coordinated master plan
consisting of program, design and linkage concepts for land located within the coastal
region of the City, by assisting in the completion of the City's portion of the California
Coastal Trail and an improvement project to Abalone Cove Shoreline Park.
• Implemented the City's Trails Network Plan by improving and maintaining trails within
the Palos Verdes Nature Preserve pursuant to the City Council adopted Preserve Trails
Plan, and assisting with the construction of the Salvation Army Trail as identified in the
City's Conceptual Trails Plan and the City's segment of the California Coastal Trail. In
addition, Staff begun the extensive overhaul of the Trails Network Plan for trails outside
of the Preserve.
• Completed the Final EIR for the proposed Zone 2 Landslide Moratorium Ordinance
revisions. The Landslide Moratorium Ordinance currently includes an exception
category for the 16 Monks plaintiffs' lots, which grants them the ability to apply for
Landslide Moratorium Exceptions (LMEs) to develop new homes on their lots. The
proposed Zone 2 Landslide Moratorium Ordinance revisions sought to expand the
exception category to allow the remaining 31 vacant, non -plaintiff's lots in Zone 2 to
also apply for LMEs. While the Final EIR was presented to the City Council on August
5, 2014, the City Council opted not to certify the document and instead tabled the
matter indefinitely.
Public Works
• Initiated and completed construction of the FY11-12 & FY12-13 Residential Street
Rehabilitation projects, which resurfaced local roadways in Area 3 (neighborhoods
bordered by Hawthorne Blvd and Silver Spur Rd.) and Area 5 (neighborhoods bordered
by Hawthorne Blvd, Crest road and Palos Verdes Drive West). The project
improvements included upgraded access ramps, micro -surface seal, asphalt concrete,
root pruning, sidewalk repair, and roadway signing and striping.
• Completed the Ryan Park Restroom Improvement and Accessibility Compliance
project.
• Initiated the Citywide Street Lighting Audit which will summarize and catalogue all street
lights within the City and ultimately lead towards a recommendation to achieve citywide
energy savings.
• Initiated construction of the Abalone Cove Shoreline Park Improvement Project which,
in compliance with the Coast Vision Plan, added new park amenities including picnic
tables, shade structures, landscaping, trees, benches, trash receptacles and trail
improvements. The project was partially paid for by a $332,588 grant from the Land
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and Water Conservation Fund Program.
• Initiated design and Construction of the Abalone Cove Parking Lot and Building Project.
This project includes ancillary improvements to the parks parking lot, staff building and
restrooms that will complement the grant -funded improvements associated with the
Abalone Cove Shoreline Park Improvement Project.
• Initiated the Peninsula Agencies Enhanced Watershed Management Plan and
Coordinated Integrated Monitoring Plan (CIMP) as a result of MS4 permit requirements.
• Initiated Phase One of the City of RPV Accessibility Transition Plan.
• Completed construction of the FY12-13 Sidewalk Repair Program which replaced
approximately 13,000 square feet of sidewalk, curb and gutter which is primarily uplifted
and damaged by overgrown street trees.
• Initiated construction of the Palos Verdes Drive East Roadway Rehabilitation and
Safety Improvement Project which will resurface the roadway and improve safety
conditions along Palos Verdes Drive East from Ganado Drive to the northerly City limits.
• Planned and held two free document/paper shredding events for Rancho Palos Verdes
residents. A total of 1,050 vehicles were served and 17.5 tons of material was
shredded. Additionally, 39 tons of mulch was distributed free of charge to residents,
and approximately 5 tons of obsolete electronic waste was collected.
• Completed construction of the Blackhorse Road CDBG ADA Compliant project which
improved public transit accessibility for the elderly and severely disabled.
• Initiated design of the FY12-13 and FY 13-14 Residential Street Rehabilitation projects,
which resurfaced local roadways in Area 1 (neighborhoods bordered by Hawthorne
Blvd and Silver Spur Rd.), Area 5B (neighborhoods bordered by Hawthorne Blvd,
Crest road and Palos Verdes Drive West) and Area 9 (neighborhoods bordered by
Western Avenue). The project improvements included upgraded access ramps, micro -
surface seal, asphalt concrete, root pruning, sidewalk repair, and roadway signing and
striping.
• Initiated construction of the Ryan Park Southern Entrance Realignment and Parking Lot
Expansion Project that will improve safety of the park's southern entrance and add 32
spaces on-site.
• Completed preparation of the Infrastructure Report Card and initiated the process to
form the new Infrastructure Management Advisory Committee.
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Parks and Recreation
• Coordinated numerous annual special events and recreational opportunities for the
community. Annual events included the Whale of a Day Celebration, Egg-Stravaganza
Egg Hunt, July 4th Independence Day Celebration, Shakespeare by the Sea
performance, International Coastal Cleanup Day, Kids Music Fest, Meet the Goats,
Local Authors Book Signing, and Breakfast with Santa. Recreational opportunities
included the Paddle Tennis Tournament, Night at the Museum, Junior Ranger Program
and Overnight Campout, and Coed Adult Softball League.
• Coordinated approximately 70 onsite and offsite recreation activities for REACH, the
City's therapeutic program serving young adults with developmental disabilities.
• Provided oversight, support, and coordination of opportunities and programs with
members of the Los Serenos de Point Vicente docent organization, including public and
private hikes and speaking engagements, fourth and sixth grade tour programs
coordinated with the Palos Verdes Peninsula Unified School District, the WOW
Program, the Junior Docent Program, and the educational Junior Docent Nature Series
that airs on RPVTV Channel 33.
• Continued to work with the Palos Verdes Peninsula Land Conservancy and Mountains
Recreation & Conservation Authority to develop the Volunteer Trail Watch Program to
monitor activity and provide public education in the Palos Verdes Nature Preserve.
• Through the City's Gifts for Parks Program, continued to pursue donations to assist with
Recreation and Parks facilities, operations, and special events; including the Fourth of
July Celebration, REACH Program for young adults with developmental disabilities, and
Point Vicente Interpretive Center exhibits and programs. The Los Serenos de Point
Vicente docents assisted with fundraising for youth programs and scholarships,
teaching aides, and exhibits for the Point Vicente Interpretive Center.
Administration
• Assisted with the compilation of updated and streamlined City Council Goals for 2014.
Progress on completing the Goals was reported to the City Council on a monthly basis
through the Weekly Administrative Report and Council Study Sessions. In addition, a
status report was presented to City Council on the implementation of the
recommendations of the Matrix Study commissioned in 2013.
• Supported City Council development of positions and consensus on the annual League
of California Cities' conference resolutions, which were voted on by the City Council's
voting delegate at the conference held in Sacramento in September 2013.
• Conducted a community outreach effort in conjunction with the search for the new City
Manager, including two Town Hall meetings and an on-line opinion survey.
viii
• Continued to work with a consultant to pursue promising grant opportunities for a
variety of City projects, which resulted in over $500,000 in grant awards during the
fiscal year for roadway safety improvements and storm drain water quality projects.
• Improved the City's readiness and promoted community awareness of emergency
preparedness through the following activities and programs, including:
o Conducted the annual Emergency Preparedness Drill at the City's
Emergency Operations Center in September 2013;
o Hosted an emergency preparedness executive training session for elected
City Council members on the Peninsula;
o Completed the installation of the San Pedro Hill ham radio repeater and
antenna;
o Updated the City's All Hazards Multi -jurisdictional Mitigation Plan;
o Installed public facility indoor evacuation route signs and AED units at all
staffed public buildings;
o Launched the Emergency Preparedness Committee's "Are You Ready?" web
page;
o Produced two Public Service Announcements on emergency preparedness
topics for broadcast on RPVty;
o The Emergency Preparedness Committee made five "Beauty and the Beast"
presentations to local homeowners associations, and,
o Staffed a booth at the City's 4th of July celebration, responding to hundreds of
questions asked by inquisitive attendees.
• Established an Employee Safety Committee to engage and educate staff, and to
promote workplace safety, thereby minimizing risk for both employees and the public at -
large using public facilities and parks.
• Assisted with retaining a consultant to prepare a Classification and Compensation
Study to assist the City Council in the negotiation of the next Memorandum of
Understanding (MOU) with the Rancho Palos Verdes Employees' Association.
• Facilitated the adoption of the "RPV OPEN" (Open Public Engagement in Negotiations)
Ordinance, which is aimed at increasing transparency in labor negotiations, informing
the public of the annual cost of the current and any proposed changes to the labor
contract, and providing an independent fiscal impact/financial analysis of each new
proposal.
• Completed a total of 13 personnel recruitments during the fiscal year, two of which were
internal promotions.
• Completed the voluntary donation from a private party of a nearly half -acre parcel in the
active Portuguese Bend landslide area, and continued to pursue the acquisition of tax -
defaulted properties for parkland and open space purposes from Los Angeles County.
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• The City Council's permanent records (Minutes, Ordinances, and Resolutions) have
been imaged and are now stored in the City's Electronic Document Management
System (EDMS).
• Made significant progress on imaging Recorded Documents held in the City Clerk's
Office, as well as Planning Commission Minutes and Resolutions, for use in the
Electronic Document Management System (EDMS).
• Responded to a wide variety of Public Records Act requests (PRAs). The volume of
requests remained relatively constant, with a slight increase from the previous year
(which had increased by 23%).
• The City completed its first competitive procurement for banking services, leading to a
new agreement with Bank of the West.
• Finance Staff prepared the 2013 Employee Compensation and Benefits Analysis and
posted it to the City's website; including a detailed list of all employee compensation for
the 2013 calendar year, which was reviewed by an independent audit firm.
• The City's Successor Agency to the Redevelopment Agency obtained approval from
both the Oversight Board and the California Department of Finance for the Long -Range
Property Management Plan and the City's Consolidated Loan to the former
redevelopment agency. Approvals of these documents will lead to the transfer of land
owned by the former redevelopment agency to the City at no cost, and repayment of
the City's Consolidate Loan from the Redevelopment Property Tax Trust Fund (former
property tax increment).
• Based upon Staff recommendation, the City Council adopted Policy No. 45 - Balanced
Operating Budget directing that ongoing expenses should not exceed ongoing
revenues.
FINANCIAL INFORMATION
Internal Control. The Finance Department of the City is responsible for establishing and
maintaining an appropriate internal control structure. The internal control system is
designed to ensure that the assets of the City are protected from loss, theft, or misuse and
to ensure that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with Generally Accepted Accounting Principles. The
internal control structure is designed to provide reasonable, but not absolute, assurance
that these objectives are met. The concept of reasonable assurance recognizes that: (1)
the cost of a control should not exceed the benefits likely to be derived; and (2) the
valuation of costs and benefits requires estimates and judgements by management.
Budaetina 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
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Improvement Authority Commission. Activities of the General fund, Special Revenue funds,
Capital Projects funds and Permanent funds are included in the annual appropriated
budgets of the government units. The level of budgetary control (that is, the level at which
expenditures cannot legally exceed the appropriated amount) is established at the
department/function level within each fund. Formal budgetary integration is employed as a
management control device. The City also maintains an encumbrance accounting system
as one method of maintaining budgetary control. These encumbrances lapse at year-end,
and any unexpended balance is eligible to be carried over to the following year's budget
appropriations with City Council approval.
Budget to Actual Comparison. The City experienced an overall $2.8 million favorable
budget variance in the General fund for the fiscal year ended June 30, 2014. Favorable
revenue variances of $1.2 million for taxes were added to a $1 million favorable
expenditure variance spread across 30 different programs. Many of the favorable
expenditure variances were permanent savings resulting from conservative budget
practices and the continued careful management of resources during FY13-14.
Significant Financial Events. There were no changes to financial policies that resulted in a
significant impact on the June 30, 2014 financial statements.
Unfunded Pension Liability. As described more fully in the Note #8 to the Financial
Statements, the City contracts with the California Public Employees Retirement System
(CaIPERS) for its employee pension plan. The City participates in a CaIPERS risk pool for
small employers with the same benefit formula. New accounting standards will require the
City to report this liability on the Government -wide Statement of Net Position for the year
ended June 30, 2015.
CaIPERS calculated the City's unfunded pension liability at June 30, 2013 (the most recent
data available) as follows.
Plan's Accrued Liability
Less: Plan's Share of Pool's Market Value of Assets
Plan's Unfunded Accrued Liability
OTHER INFORMATION
$30,383,661
(23,153,182)
$ 7,230,479
Independent Audit. The City requires an annual audit by independent certified public
accountants. The accounting firm of Vavrinek, Trine, Day & Co., 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
$500,000 is expended on Federal financial assistance programs, the City is required to
undergo an annual single audit in conformity with the provisions of the Single Audit Act of
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1984 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non -Profit Organizations. For the year ended June 30, 2014,
$1,398,254 was expended on Federal financial assistance programs; and therefore a
Single Audit is required.
GFOA Certificate of Achievement Award. The Government Finance Officers Association of
the United States and Canada (GFOA) awarded a Certificate of Achievement for
Excellence in Finance Reporting to the City of Rancho Palos Verdes for its CAFR for the
fiscal year ended June 30, 2013. This was the 21st consecutive year that the City has
achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized CAFR. This report
must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current CAFR continues to meet the Certificate of Achievement Program's requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments. Completion of this report was the accomplishment by combined efforts
of many individuals, especially Kathryn Downs, Deputy Director of Finance, and Allan
Kaufman, Senior Administrative Analyst. I wish to acknowledge the assistance of our
auditors, Vavrinek, Trine, Day & Co., LLP and the contributions of other Finance
Department staff: Jane Lin, Selena Wright, Diane Amundson, and Jayne Mahtani.
I would also like to recognize the City Council for their continued leadership directing the
City to achieve a sound fiscal position over the last several years. We look forward to
maintaining this success in the future under the leadership of the City Council.
Respectfully submitted,
Dennis McLean
Director of Finance
xii
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-
Spectacular coastal scenery!
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4,
1
CITY OF RANCHO PALOS VERDES
DIRECTORY OF CITY OFFICIALS
JUNE 30, 2014
CITY COUNCIL
Jerry V. Duhovic, Mayor
James E. Knight, Mayor Pro -Tem
Susan Brooks, Councilwoman
Brian Campbell, Councilman
Anthony M. Misetich, Councilman
ADMINISTRATION AND DEPARTMENT HEADS
Acting City Manager/Deputy City Manager Carolynn Petru
City Clerk Carla Morreale
Director of Finance Dennis McLean
Community Development Director Joel Rojas
Director of Public Works Michael Throne
Director of Recreation and Parks Cory Linder
City Attorney Richards, Watson & Gershon
xiv
CITY OF RANCHO PALOS VERDES
ORGANIZATIONAL CHART
CITIZENS OF
RANCHO PALOS VERDES
MAYOR AND CITY COUNCIL
COMMISSIONS & COMMITTEES
Planning Commission
Traffic Safety Committee
Finance Advisory Committee
Emergency Preparedness Committee
CITY MANAGER
Administration
Personnel/Community Outreach
Risk Management
Information Technology
CITY CLERK
Records Management
Public Information
Elections
RECREATION & PARKS
Park Facilities Staffing
Point Vicente Interpretive Center
Special Events
REACH Program
PUBLIC SAFETY
L.A. County Sheriff
L.A. County Fire
Animal Control
Emergency Preparedness
FINANCE
Financial Reporting & Budget
Accounts Payable/Receivable
Payroll
Purchasing
COMMUNITY DEVELOPMENT
Planning/Zoning
Building & Safety/Geology
Code Enforcement
View Restoration
PUBLIC WORKS
Street Maintenance
Refuse/City Engineering
Park/Building Maintenance
Capital Projects
XV
COMMISSIONS & COMMITTEES
Infrastructure Management Advisory Committee
Oversight Committee for the Water Quality & Flood
Protection Program
CITY ATTORNEY
Richards, Watson & Gershon
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rancho Palos Verdes
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2013
Executive Director/CEO
xvi
Majestic view from Del Cerro Park
FINANCIAL SECTION
1
Urr Vavrinek, Trine, Day & Co., LLP
,allVALUE THE DIFFERENCE
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
The Honorable City Council
of the City of Rancho Palos Verdes
Rancho Palos Verdes,California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Rancho Palos Verdes,
California (City), as of and for the year ended June 30, 2014, and the related notes to the fmancial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement,whether due to fraud or error.
Auditors'Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
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8270 Aspen Street Rancho Cucamonga,CA 91730 Tel:909.466.4410 Fax:909.466.4431 www.vtdcpa.com
FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business -type activities, each major fund, and the aggregate
remaining fund information of the City as of June 30, 2014, and the respective changes in financial position and,
where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of Matter
As described in Note 1 to the financial statements, the City adopted Governmental Accounting Standards Board
(GASB) Statement No. 65 — Items Previously Reported as Assets and Liabilities, effective July 1, 2013. Our
opinion is not modified with respect to this matter.
Other Matters
Required Supplementmy Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 7 through 16 be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the 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
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual non -major
fund financial statements and budgetary comparison schedules, and statistical section are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The combining and individual non -major fund financial statements and budgetary comparison schedules are the
responsibility of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining and individual non -major fund statements and budgetary comparison schedules are fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2014, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City's internal control over financial reporting and compliance.
i
V01i61J, rAel.J t Al f.9
Rancho Cucamonga, California
December 18, 2014
4
MANAGEMENT'S DISCUSSION & ANALYSIS
5
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CoastalAnnual • Day at Abalone •
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
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, 2014. We
encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in our Letter of Transmittal, which
can be found on pages iv-xii of this report.
Financial Highlights
The assets of the City of Rancho Palos Verdes exceed its liabilities at the close of
the Fiscal Year ended June 30, 2014, by $207,772,464 (Net Position). Of this
amount, $51,996,597 (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 nonexpendable, and is therefore not available to
meet the City's obligations.
The City's Total Net Position increased by $17,955,235. The primary factors for
the increase are discussed below.
As of June 30, 2014, the City's Governmental Funds reported combined ending
Fund Balances of $46,681,048, an increase of $9.3 million. An additional $4.3
million of transient occupancy tax was accumulated for future capital improvement
projects, governmental funds experienced permanent net savings of $1.6 million,
and the City received a $1.9 million settlement from Southern California Edison.
As of June 30, 2014, unassigned fund balance for the General Fund was
$15,474,583 or 85% of General Fund expenditures. About $13.9 million of this
amount constitutes the City Council's General Fund Reserve (rainy day fund). Due
to the City Council's reserve policy, the unassigned fund balance has historically
been maintained at or above the policy threshold level of 50% of annually budgeted
General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's
basic financial statements, which are comprised of three components: 1)
Government -Wide Financial Statements; 2) Fund Financial Statements; and 3)
Notes to the Financial Statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government -Wide Financial Statements. The Government -Wide Financial
Statements are designed to provide readers with a broad overview of the City's
finances, in a manner similar to a private -sector business.
7
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
The Statement of Net Position presents information on all of the City's assets and
liabilities, with the difference between the two reported as Net Position. Over time,
increases or decreases in net position may serve as a useful indicator of whether
the financial position of the City of Rancho Palos Verdes is improving or
deteriorating.
The Statement of Activities presents information showing how the government's
net position changed during the most recent Fiscal Year. All changes in net
position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both the Government -Wide Financial Statements distinguish functions of the City
that are principally supported by taxes and intergovernmental revenues
(governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business -type
activities). The governmental activities of the City include general government,
public safety, public works, community development and parks and recreation.
The City's business -type activities include only the Water Quality and Flood
Protection program for renewal and maintenance of the City's storm drain facilities.
The Government -Wide Financial Statements include not only the City of Rancho
Palos Verdes itself (known as the Primary Government), but also a legally separate
Improvement Authority for which the City of Rancho Palos Verdes is financially
accountable. Financial information for this Component Unit has been included as
an integral part of the primary government.
The Government -Wide Financial Statements can be found on pages 19-21 of this
report.
Fund Financial Statements. A Fund is a grouping of related accounts that is
used to maintain control over resources that have been segregated for specific
activities or objectives. The City of Rancho Palos Verdes, like other State and
local governments, uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements. All of the Funds of the City can be divided
into three categories: Governmental Funds, Proprietary Funds, and Fiduciary
Funds.
Governmental Funds. Governmental Funds are used to account for essentially
the same functions reported as governmental activities in the Government -Wide
Financial Statements. However, unlike the Government -Wide Financial
Statements, Governmental Fund Financial Statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable
8
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
resources available at the end of the Fiscal Year. Such information may be useful
in evaluating a government's near-term financing requirements.
Because the focus of Governmental Funds is narrower than that of the
Government -Wide Financial Statements, it is useful to compare the information
presented for Governmental Funds with similar information presented for
governmental activities in the Government -Wide Financial Statements. By doing
so, readers may better understand the long-term impact of the government's near-
term financing decisions. The Governmental Balance Sheet and Governmental
Fund Statement of Revenues, Expenditures, and Changes in Fund Balances
provide a reconciliation to facilitate this comparison between Governmental Funds
and governmental activities.
The City of Rancho Palos Verdes maintained 27 individual Governmental Funds
during the Fiscal Year ended June 30, 2014. Information is presented separately
in the Governmental Fund Balance Sheet and in the Governmental Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances for the
General Fund, the Street Maintenance Fund, and the Capital Improvements Fund,
all of which are considered to be major funds. Data from the other 24
Governmental Funds are combined into a single, aggregated presentation.
Individual fund data for each of these Other Governmental Funds is provided in
the form of combining statements elsewhere in this report.
The City of Rancho Palos Verdes adopts an annual appropriated budget for each
of its Governmental Funds. A budgetary comparison statement has been provided
for each Governmental Fund to demonstrate compliance with this budget.
The basic Governmental Fund Financial Statements can be found on pages 22-31
of this report.
Proprietary Funds. The City of Rancho Palos Verdes maintains two types of
Proprietary Funds. Enterprise Funds are used to report the same functions
presented as business -type activities in the Government -Wide Financial
Statements. The City uses an Enterprise Fund to account for its Water Quality
and Flood Protection Program. Internal Service Funds are an accounting device
used to accumulate and allocate costs internally among the City's various
functions. The City uses Internal Service Funds to account for its fleet of vehicles,
computer systems, furniture and equipment, Employee Benefits, and Civic Center
building replacement/improvements. Because these services predominantly
benefit the governmental function, they have been included within governmental
activities in the Government -Wide Financial Statements.
Proprietary Fund Financial Statements provide the same type of information as the
Government -Wide Financial Statements, only in more detail. These statements
can be found on pages 32-34 of this report. The Proprietary Fund Financial
9
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
Statements provide separate information for the Enterprise Fund and the Internal
Service Funds. The Enterprise Fund is presented as a single major fund of the
City, while the Internal Service Funds are combined and presented as a single,
aggregated presentation in the Statement. Individual fund data for the Internal
Service Funds is provided in the form of combining statements elsewhere in this
report.
Fiduciary Fund. The City is a fiduciary for the Successor Agency to the Rancho
Palos Verdes Redevelopment Agency (the "Successor Agency"). The City is
responsible for ensuring that the assets reported in the Successor Agency's
private -purpose trust fund are only: 1) used to extinguish the obligations of the
former RDA; or 2) transferred to another agency pursuant to state redevelopment
dissolution law. All of the fiduciary activities are reported in a separate Statement
of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. We
exclude these activities from the City's Government -Wide Financial Statement
because the City cannot use these assets to finance its operations. Individual
Fiduciary Fund statements can be found on pages 35-36 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 38-68 of this report.
Other information. The combining statements referred to earlier in connection
with Other Governmental Funds and Internal Service Funds are presented
immediately following the Notes to the Financial Statements. Combining and
individual fund statements and schedules can be found on pages 70-118 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 exceeded liabilities by $207,772,464 at June 30, 2014. By far, the largest
portion of the City's Net Position (69%) 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.
10
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
City of Rancho Palos Verdes Net Position
Governmental Business-type
Activities Activities Total
June 30,2014 June 30,2013 June 30,2014 June 30,2013 June 30,2014 June 30,2013
Current and other assets $ 62,769,636 $ 53,347,904 $ 6,085,923 $13,021,140 $ 68,855,559 $ 66,369,044
Capital assets 114,426,541 113,284,447 29,557,317 18,318,980 143,983,858 131,603,427
Total assets 177,196,177 166,632,351 35,643,240 31,340,120 212,839,417 197,972,471
Long-term liabilities outstanding 350,474 363,107 - - 350,474 363,107
Other liabilities 3,947,879 4,463,241 768,600 3,293,894 4,716,479 7,757,135
Total liabilities 4,298,353 4,826,348 768,600 3,293,894 5,066,953 8,120,242
Net Investment in capital assets 114,426,541 113,284,447 29,557,317 18,318,980 143,983,858 131,603,427
Restricted 11,792,009 1,834,957 - - 11,792,009 1,834,957
Unrestricted 46,679,274 46,686,599 5,317,323 9,727,246 51,996,597 56,413,845
Total net position $ 172,897,824 $ 161,806,003 $34,874,640 $28,046,226 $207,772,464 $189,852,229
An additional portion of the City's Net Position ($11,792,009 or about 6%)
represents a nonexpendable resource that is subject to external restrictions. The
remaining balance of Unrestricted Net Position ($51,996,597 or about 25%) may
be used to meet the government's ongoing obligations to its citizens and creditors.
Total current and other assets increased by $2.5 million. This was primarily due
to the accumulation of additional transient occupancy tax to fund future capital
improvement projects. Capital assets increased by $12.4 million primarily due to
grant-funded construction of projects and acquisition of land. Other liabilities
decreased by $3.1 million. At June 30, 2013, the City's Business-type Activity had
a significant payable due to the contractor for the San Ramon Canyon stabilization
project.
Governmental Activities. Governmental Activities increased the City's Net
Position by $11,091,821.
11
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
City of Rancho Palos Verdes Changes in Net Position
Governmental Business-type
Activities Activities Total
June 30,2014 June 30,2013 June 30,2014 June 30,2013 June 30,2014 June 30,2013
Program revenues:
Charges for services $ 2,120,791 $ 3,802,495 $ 1,360,907 $ 1,312,989 $ 3,481,698 $ 5,115,484
Operating contributions and grant 2,506,016 4,132,708 - 2,136,775 2,506,016 6,269,483
Capital contributions and grants 2,911,817 138,676 6,114,956 - 9,026,773 138,676
General revenues:
Property taxes 11,991,144 11,283,864 - 11,991,144 11,283,864
Othertaxes 11,989,460 10,543,744 - 11,989,460 10,543,744
Other 4,239,613 1,113,433 10,982 9,762 4,250,595 1,123,195
Total revenues 35,758,841 31,014,920 7,486,845 3,459,526 43,245,686 34,474,446
Expenses:
Administration 7,530,278 5,533,516 - - 7,530,278 5,533,516
Public safety 4,429,312 4,347,773 4,429,312 4,347,773
Public works 9,376,755 10,873,771 9,376,755 10,873,771
Community development 1,927,027 2,526,426 1,927,027 2,526,426
Parks and recreation 1,368,648 1,695,904 1,368,648 1,695,904
Non-departmental 35,000 - 35,000 -
Water Quality Flood Protection - - 658,431 594,183 658,431 594,183
Total expenses 24,667,020 24,977,390 658,431 594,183 25,325,451 25,571,573
Net of transfer in/(out) - (8,293,009) - 8,293,009 - -
Decrease /Increase in net position 11,091,821 2,255,479 6,828,414 11,158,352 17,920,235 8,902,873
Extraordinary gain/(loss) - (19,289,059) - - - (19,289,059)
Decrease /Increase in net position 11,091,821 21,544,538 6,828,414 11,158,352 17,920,235 10,386,186
Net position-beginning of fiscal year 161,806,003 183,350,541 28,046,226 16,887,874 189,852,229 200,238,415
Net position-end of fiscal year $172,897,824 $161,806,003 $34,874,640 $28,046,226 $207,772,464 $189,852,229
Governmental Activities Net Position increased $11.1 million primarily due to the
following.
• Government Activities accumulated an additional $4.3 million of transient
occupancy tax, which was transferred to the Capital Improvement Projects
Fund to fund future projects
• Grant-funded purchases and corrections of prior land balances totaled $2
million
• Permanent net savings due to favorable expenditure variances totaled $1.6
million.
• The City received a litigation settlement of $1.9 million from Southern
California Edison.
12
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
Revenues by Source — Governmental Activities
other taxes
33%
other
12%
charges for
services
6%
operating
contributions
and grants
7%
property taxes capital
34% contributions
and grants
8%
Business-Type Activities. Business-type activities increased the City's net
position by about $6.8 million, primarily due to the grant-funded construction of the
San Ramon Canyon stabilization project.
Financial Analysis of Governmental Funds
As of the end of the current Fiscal Year, the City's Governmental Funds reported
combined ending Fund Balances of $46,681,048, an increase of $9.3 million in
comparison with the prior year. Approximately 96% of the combined ending Fund
Balances (about$44.7 million) constitutes spendable fund balance. The combined
spendable fund balance includes negative unassigned fund deficits of $47,633 for
the Measure A special revenue fund and $68,671 for the Community Development
Block Grant. The remainder of the combined ending Fund Balances is either non-
spendable due to outside legal restrictions ($1.85 million), or non-spendable in the
form of prepaid items and inventory.
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 was $15,474,583, while total Fund Balance reached $15,618,485. 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 58% of
total General Fund uses, while total Fund Balance represents 58% of that same
amount.
During Fiscal Year 13-14, the fund balance of the City's General Fund increased
by $1,110,234. This was primarily due to the litigation settlement from Southern
California Edison, noted above.
13
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
The Street Maintenance Fund Balance increased by $357,422, primarily due to
permanent expenditure savings.
The Capital Improvement Projects (CIP) Fund had an ending fund balance of
$18,011,254. Of this amount, $10.8 million is held for projects continued from
FY13-14 to FY14-15.
Financial Analysis of Proprietary Funds
The City's Proprietary Funds provide the same type of information found in the
Government -Wide Financial Statements, but in more detail. Unrestricted Net
Position of the Enterprise Fund at the end of the year amounted to $5,317,323
Unrestricted Net Position of the Internal Service Funds at the end of the year
amounted to $4,007,854. The total growth in Proprietary Fund type net position
was $7,158,956 or about 77% of unrestricted Net Position.
General Fund Budgetary Highlights
The General Fund revenue budget was increased by a net amount of $950,271,
primarily due to adjustments related to the litigation settlement from Southern
California Edison, noted above.
The difference between original budgeted expenditures and the final amended
budget was a decrease of $582,156; and is briefly summarized as follows:
➢ An increase of $401,989 was attributable to appropriations continued from
FY12-13.
➢ A decrease of $1,042,056 was attributable to appropriations continued to
FY14-15.
➢ Other immaterial adjustments resulted in net increases of $57,911.
The City Council authorized additional General Fund transfers of about $1.7 million
for the prior year's favorable expenditure variance, as required by the City
Council's Reserve Policy. The City Council increased the budgeted transfer to the
Capital Improvement Projects Fund by $269,000, in accordance with the revised
estimate of transient occupancy tax revenue at Midyear. Finally, the City Council
authorized an additional General Fund transfer of $563,554 for a retrospective
refund from the California Joint Powers Insurance Authority.
Capital Asset and Debt Administration
Capital Assets. The City's investment in Capital Assets for its Governmental
activities as of June 30, 2014, amounts to $114,426,541 (net of accumulated
14
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
depreciation). This investment in capital assets includes land, buildings, park
improvements, roadways, sewer, storm drains, vehicles, computer equipment,
furniture, other equipment, and construction in progress. During the current fiscal
year, the City's investment in governmental capital assets increased by about
$1,142,094 or about 1%.
Major capital asset events during the current Fiscal Year included the following-
➢ Depreciation of $3.7 million was recorded for the City's Capital Assets.
➢ A total of $2.9 million of construction in process was added for various
projects.
➢ Land was purchased with grant funding.
The Capital Assets (net of accumulated depreciation) for Business-type activities
as of June 30, 2014 was $29,557,317.
City of Rancho Palos Verdes Capital Assets
(net of depreciation)
Governmental Business-type
Activities Activities Total
June 30,2014 June 30,2013 June 30,2014 June 30,2013 June 30,2014 June 30,2013
Capital assets not being depreciated
Land $ 41,932,775 $ 39,900,962 $ 1,428,243 $ 1,408,493 $ 43,361,018 $ 41,309,455
Construction in progress 1,366,748 2,561,227 17,249,957 6,031,125 18,616,705 8,592,352
Total capital assets not being depreciated 43,299,523 42,462,189 18,678,200 7,439,618 61,977,723 49,901,807
Capital assets being depreciated,net
Buildings 6,803,871 6,749,954 - - 6,803,871 6,749,954
Vehicles 67,838 32,351 67,838 32,351
Computer equipment 85,322 129,854 85,322 129,854
Furniture,fixtures and equipment 59,027 87,470 59,027 87,470
Infrastructure
Roadway system 44,555,641 44,015,361 44,555,641 44,015,361
Sewer system 7,288,292 7,742,114 7,288,292 7,742,114
Storm drain system 9,429,504 9,679,983 10,879,117 10,879,362 20,308,621 20,559,345
Parks stem2,837,523 2,385,171 - - 2,837,523 2,385,171
Total capital assets beingdepreciated,net 71,127,018 70,822,258 10,879,117 10,879,362 82,006,135 81,701,620
Capital Assets,net $114,426,541 $113,284,447 $29,557,317 $18,318,980 $143,983,858 $131,603,427
Additional information on the City's Capital Assets can be found in Note #4 on
pages 51-52 of this report.
Long-term debt. At the end of the current Fiscal Year, the City of Rancho Palos
Verdes had total debt outstanding of $350,474 for Employee Compensated
Absences.
15
CITY OF RANCHO PALOS VERDES
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2014
City of Rancho Palos Verdes Outstanding Debt
Governmental
Activities
June 30, 2014 June 30, 2013
Employee compensated absences 350,474 363,107
Total $ 350,474 $ 363,107
The City's total debt decreased by $12,633 (3%) during the current Fiscal Year,
due to additional accrued leave taken by employees.
State statutes limit the amount of general obligation debt a governmental entity
may issue to 15 percent of its total assessed valuation. The current debt limitation
for the City of Rancho Palos Verdes is $1,533,583,000. Additional information on
the City's long-term debt can be found in Note #6 on page 53 of this report.
Economic Factors and Next Year's Budgets and Rates
➢ Property tax revenue accounts for about 34 percent of Government-Wide
revenues. Local property values remain strong, and the City's property
assessments grew by 5.35% for FY13-14.
The Consumer Price Index for Los Angeles County increased by 1.8% for
the 12 months ended June 2014. The City's original FY14-15 General Fund
expenditure budget increased by 7.3% when compared to the original
FY13-14 budget. Revenue in excess of budgeted expenditures (about $6.1
million) has been programmed for capital improvement projects.
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(a-)rpv.com.
16
BASIC FINANCIAL STATEMENTS
17
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CITY OF RANCHO PALOS VERDES
STATEMENT OF NET POSITION
June 30, 2014
Governmental Business -type
Activities Activities
ASSETS
Total
CURRENT ASSETS:
Cash and investments $ 52,410,811 $ 5,092,143 $ 57,502,954
Receivables:
Taxes 1,471,546 1,471,546
Interest 22,190 2,328 24,518
Notes 7,707,864 - 7,707,864
Due from other government agencies 399,737 973,971 1,373,708
Other 497,476 17,481 514,957
Inventory 40,914 40,914
Prepaid items 219,098 219,098
TOTAL CURRENT ASSETS 62,769,636 6,085,923 68,855,559
NONCURRENT ASSETS:
Receivable from Successor Agency 12,088,604 12,088,604
Allowance for Successor Agency receivable (12,088,604) (12,088,604)
Capital assets
Land 41,932,775 1,428,243 43,361,018
Construction in process 1,366,748 17,249,957 18,616,705
Capital assets, net accumulated depreciation
Property and equipment 212,187 212,187
Building and improvements 6,803,871 6,803,871
Infrastructure 64,110,960 10,879,117 74,990,077
TOTAL NONCURRENT ASSETS 114,426,541 29,557,317 143,983,858
TOTAL ASSETS $ 177,196,177 $ 35,643,240 $ 212,839,417
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities 3,452,628 765,155 4,217,783
Retentions payable 28,529 3,445 31,974
Unearned revenue 88,560 88,560
Deposits payable 378,162 378,162
TOTAL CURRENT LIABILITIES 3,947,879 768,600 4,716,479
LONG-TERM LIABILITIES:
Due within one year 277,761 277,761
Due beyond one year 72,713 72,713
TOTAL LONG-TERM LIABILITIES 350,474 350,474
TOTAL LIABILITIES 4,298,353 768,600 5,066,953
NET POSITION
Net investment in capital assets 114,426,541 29,557,317 143,983,858
Restricted 11,792,009 - 11,792,009
Unrestricted 46,679,274 5,317,323 51,996,597
TOTAL NET POSITION $ 172,897,824 $ 34,874,640 $ 207,772,464
See accompanying notes to financial statements.
19
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
For the year ended June 30, 2014
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/programs Expenses Services Contributions Contributions
Governmental Activities:
Administration $ 7,530,278 $ 119,615 $ 18,466
Public safety 4,429,312 41,647 100,000
Public works 9,376,755 169,380 2,375,920 2,911,817
Community development 1,927,027 1,772,499 11,630
Parks and recreation 1,368,648 17,650
Non -departmental 35,000
Total governmental activities 24,667,020 2,120,791 2,506,016 2,911,817
Business -type Activity:
Water Quality Flood Protection 658,431 1,360,907 6,114,956
Total primary government $ 25,325,451 $ 3,481,698 $ 2,506,016 $ 9,026,773
See accompanying notes to financial statements.
20
General revenues:
Taxes
Property taxes
Transient occupancy tax
Sales tax
Franchise tax
Utility user tax
Other taxes
Investment income
Unrestricted grants, contributions and
other revenues
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
Net Revenue (Expense) and Changes in Net Position
Governmental Business -type
Activities Activity
(7,392,197)
(4,287,665)
(3,919,638)
(142,898)
(1,350,998)
(35,000)
(17,128,396)
(17,128,396)
Total
(7,392,197)
(4,287,665)
(3,919,638)
(142,898)
(1,350,998)
(35,000)
(17,128,396)
6,817,432 6,817,432
6,817,432 (10,310,964)
11,991,144 - 11,991,144
4,250,086 - 4,250,086
1,642,381 - 1,642,381
1,998,213 - 1,998,213
2,509,524 - 2,509,524
1,589,256 - 1,589,256
94,228 10,982 105,210
4,145, 385 - 4,145, 385
28,220,217 10,982 28,231,199
11, 091, 821 6,828,414 17, 920, 235
161,806,003 28,046,226 189,852,229
172,897,824 $ 34,874,640 $ 207,772,464
21
CITY OF RANCHO PALOS VERDES
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2014
General
ASSETS
Cash and investments $ 16,204,990
Receivables:
Taxes 1,325,960
Interest 8,936
Due from other government agencies 14,915
Other 413,389
Due from other funds 76,063
Inventory 40,914
Prepaid items 102,988
Receivable from Successor Agency 12,088,604
Allowance for Successor Agency receivable (12,088,604)
TOTAL ASSETS $ 18,188,155
LIABILITIES
Accounts payable and accrued liabilities
Due to other funds
Retentions payable
Unearned revenue
Deposits payable
TOTAL LIABILITIES
2,090,540
9,628
88,560
378,162
2,566,890
Special Revenue Capital Projects
Street Capital
Maintenance Improvements
1,555,532
129,484
190
2,059
17,125
18,649,491
6,052
107,476
1,704,390 $ 18,763,019
432,245
432,245
625,388
18,901
644,289
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 2,780 250 107,476
TOTAL DEFERRED INFLOWS OF RESOURCES 2,780 250 107,476
FUND BALANCES
Non -Spendable
Endowment principal
Reimbursement settlement agreement
Prepaid items 102,988
Inventory 40,914
Habitat restoration
Restricted 1,271,895
Committed
Assigned 18,011,254
Unassigned 15,474,583
TOTAL FUND BALANCES 15,618,485 1,271,895 18,011,254
TOTAL LIABILITIES, DEFERRED INFLOWS AND
FUND BALANCES $ 18,188,155 $ 1,704,390 $ 18,763,019
See accompanying notes to financial statements.
22
Other Total
Governmental Governmental
Funds Funds
12,039,149
16,102
5,222
275,287
63,475
12,399,235
229,273
76,063
305,336
48,449,162
1,471,546
20,400
399,737
493,989
76,063
40,914
102,988
12,088,604
(12,088,604)
51, 054, 799
3,377,446
76,063
28,529
88,560
378,162
3,948,760
314,485 424,991
314,485 424,991
750,000
1,000,000
95,194
8,674,920
58,235
1,317,369
(116,304)
11, 779,414
12, 399, 235
750,000
1,000,000
102,988
40,914
95,194
9,946,815
58,235
19,328,623
15,358,279
46,681,048
51,054,799
23
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF
NET POSITION
June 30, 2014
Fund balances - total governmental funds $ 46,681,048
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.
Receivables not available to pay for current period expenditures are reported as unavailable revenue in
the funds.
Long-term notes receivable are not current available resources and, therefore, do not affect the
governmental fund balance.
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the
governmental funds.
Internal service funds are used by management to charge the costs of certain activities, including
equipment and building replacement and employee benefits, to individual funds. The assets and
liabilities of the internal service funds are included in the Statement of Net Position.
Net position of governmental activities
See accompanying notes to financial statements.
24
114,214,354
424,991
7,707,864
(350,474)
4,220, 041
172,897,824
Randall Simmons Memorial Bridge at Marilyn Ryan Sunset Point Park
25
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended June 30, 2014
Special Revenue Capital Projects
Street Capital
General Maintenance Improvements
REVENUES:
Taxes $ 23,167,189 $ $ -
Licenses and permits 1,950,736
Revenue from other agencies 32,083 1,352,927 1,691,697
Charges for services 264,047 3,000
Fines and forfeitures 128,747
Use of money and property 797,657 1,389 25,415
Other revenues 1,489,330 25,945
TOTAL REVENUES 27,829,789 1,383,261 1,717,112
EXPENDITURES:
Current
Administration 5,792,166
Public safety 4,492,312
Public works 3,613,029 2,089,535
Community development 2,633,564
Parks and recreation 1,573,114
Non -departmental 35,000
Capital Outlay 4,113,027
TOTAL EXPENDITURES 18,139,185 2,089,535 4,113,027
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 9,690,604 (706,274) (2,395,915)
OTHER FINANCING SOURCES (USES):
Transfers in 167,441 1,063,696 8,841,552
Transfers out (8,747,811)
TOTAL OTHER FINANCING SOURCES
(USES) (8,580,370) 1,063,696 8,841,552
NET CHANGE IN FUND BALANCE 1,110,234 357,422 6,445,637
FUND BALANCE - BEGINNING OF YEAR 14,508,251 914,473 11,565,617
FUND BALANCE - END OF YEAR $ 15,618,485 $ 1,271,895 $ 18,011,254
See accompanying notes to financial statements.
26
Other Total
Governmental Governmental
Funds Funds
813,417 $ 23,980,606
1,950,736
2,224,580 5,301,287
55,708 322,755
128,747
21,540 846,001
1,552,971 3,068,246
4,668,216 35,598,378
5,792,166
4,492,312
1,908,087 7,610,651
6,098 2,639, 662
1,573,114
35,000
4,113, 027
1,914,185 26,255,932
2,754,031 9,342,446
351,700 10,424,389
(1,731,488) (10,479,299)
(1,379,788) (54,910)
1,374,243 9,287,536
10,405,171 37, 393, 512
11,779,414 $ 46,681,048
27
CITY OF RANCHO PALOS VERDES
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2014
Net change in fund balances - total governmental funds $ 9,287,536
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
Depreciation expense
Revenues in the Statement of Activities that do not provide current financial resources are not
reported as revenues in the funds.
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.
4,796,987
(3,617,405)
99,546
181,982
Compensated absences expenses reported in the Statement of Activities do not require the use of
current financial resources and therefore are not reported as expenditures in governmental funds. 12,633
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.
330,542
Change in net position of governmental activities $ 11,091,821
See accompanying notes to financial statements.
28
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
For the year ended June 30, 2014
REVENUES:
Taxes
Licenses and permits
Revenue from other agencies
Charges for services
Fines and forfeitures
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Administration
City council
City manager
Legal services
City clerk
Community outreach
RPV TV
Risk management
Personnel
Finance
Information technology - data
Information technology - voice
Total Administration
Public Safety
Sheriff services
Special safety programs
Animal control
Emergency preparedness
Total Public Safety
Public Works
Public works administration
Traffic management
Storm water quality
Public building maintenance
Parks/trails/open space maintenance
Sewer maintenance
Total Public Works
See accompanying notes to financial statements.
Budgeted Amounts
Original Final
$ 21,804,700
1,786,900
27,000
297,700
115,500
670,790
32,100
24, 734, 690
Actual
$ 21,968,438 $ 23,167,189
1,786,900 1,950,736
27,000 32,083
297,700 264,047
115,500 128,747
746,790 797,657
742,633 1,489,330
25,684, 961 27, 829, 789
149,100 149,100 137,169
940,800 973,823 973,378
1,045,000 1,187,542 1,186,947
611,250 645,544 643,145
80,574 83,769 80,017
103,400 154,687 153,443
475,000 475,000 467,248
259,050 332,645 314,837
1,442, 700 1,419, 700 1,407,151
533,800 548,800 356,593
99,300 99,300 72,238
5,739,974 6,069,910 5,792,166
4,254,200 4,177,601 4,177,601
104,500 104,500 61,839
88,000 88,000 81,346
236,100 179,617 171,526
4,682,800 4,549,718 4,492,312
2,161,000 2,091,000 1,966,202
296,000 100,000 76,611
405,500 245,005 212,053
596,600 576,600 402,120
1,351,130 1,035,355 904,917
68,000 68,000 51,126
4,878,230 4,115,960 3,613,029
29
Variance with
Final Budget
Positive
(Negative)
$ 1,198,751
163,836
5,083
(33,653)
13,247
50,867
746,697
2,144,828
11,931
445
595
2,399
3,752
1,244
7,752
17,808
12,549
192,207
27,062
277,744
42,661
6,654
8,091
57,406
124,798
23,389
32,952
174,480
130,438
16,874
502,931
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Community Development
Planning 1,315,840 1,334,360 1,311,995 22,365
Building & safety services 670,700 645,980 626,386 19,594
Code enforcement 214,900 214,900 212,381 2,519
View restoration/preservation 381,300 381,300 335,870 45,430
Natural Community Conservation Plan - 15,260 15,260 -
Geology 150,000 150,000 131,672 18,328
Total Community Development 2,732,740 2,741,800 2,633,564 108,236
Parks and Recreation
Recreation administration 663,650 663,650 653,202 10,448
Recreation facilities 464,700 469,600 463,195 6,405
Special events 88,350 112,150 91,629 20,521
Point Vicente Interpretive Center 404,875 350,375 330,967 19,408
REACH 39,100 39,100 34,121 4,979
Total Parks and Recreation 1,660,675 1,634,875 1,573,114 61,761
Non -departmental - - 35,000 (35,000)
TOTAL EXPENDITURES 19,694,419 19,112,263 18,139,185 973,078
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,040,271 6,572,698 9,690,604 3,117,906
OTHER FINANCING SOURCES (USES):
Transfers in 210,000 210,000 167,441 (42,559)
Transfers out (5,904,814) (8,446,425) (8,747,811) (301,386)
TOTAL OTHER FINANCING SOURCES
(USES) (5,694,814) (8,236,425) (8,580,370) (343,945)
NET CHANGE IN FUND BALANCE (654,543) (1,663,727) 1,110,234 2,773,961
FUND BALANCE - BEGINNING OF YEAR 14,508,251 14,508,251 14,508,251 -
FUND BALANCE - END OF YEAR $ 13,853,708 $ 12,844,524 $ 15,618,485 $ 2,773,961
See accompanying notes to financial statements.
30
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
STREET MAINTENANCE SPECIAL REVENUE FUND
For the year ended June 30, 2014
REVENUES:
Revenue from other agencies
Charges for services
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Public Works
Street landscape maintenance
Traffic signal maintenance
Portuguese Bend road maintenance
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See accompanying notes to financial statements.
Budgeted Amounts
Original Final
$ 1,267,695
4,000
2,730
20,000
1,294,425
1,635,279
109,000
552,400
2,296,679
(1,002,254)
1,082,000
79,746
914,473
$ 994,219
31
$ 1,267,695
4,000
2,730
20,000
1,294,425
Variance with
Final Budget
Positive
Actual (Negative)
$ 1,352,927 $ 85,232
3,000 (1,000)
1,389 (1,341)
25,945 5,945
1,383,261 88,836
1,610,279 1,464,285 145,994
109,000 100,273 8,727
542,400 524,977 17,423
2,261,679 2,089,535 172,144
(967,254) (706,274) 260,980
1,082,000 1,063,696 (18,304)
357,422 242,676
914,473
$ 1,271,895 $ 242,676
114,746
914,473
$ 1,029,219
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2014
Business -type Governmental
Activity Activities
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
ASSETS
CURRENT ASSETS:
Cash and investments $ 5,092,143 $ 3,961,649
Receivables:
Interest 2,328 1,790
Due from other government agencies 973,971 -
Other 17,481 3,487
Prepaid items 116,110
TOTAL CURRENT ASSETS 6,085,923 4,083,036
NONCURRENT ASSETS:
Capital assets, not being depreciated
Land 1,428,243
Construction in process 17,249,957
Capital assets
Property and equipment 11,813 1,376,156
Infrastructure 12,286,056
Accumulated depreciation (1,418,752) (1,163,969)
TOTAL NONCURRENT ASSETS 29,557,317 212,187
TOTAL ASSETS $ 35,643,240 $ 4,295,223
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities 765,155 75,182
Retentions payable 3,445
TOTAL LIABILITIES 768,600 75,182
NET POSITION
Net investment in capital assets 29,557,317 212,187
Unrestricted 5,317,323 4,007,854
TOTAL NET POSITION $ 34,874,640 $ 4,220,041
See accompanying notes to financial statements.
32
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the year ended June 30, 2014
OPERATING REVENUES:
Charges for services
Business -type Governmental
Activity Activities
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
$ 1,360,907
2,724,725
OPERATING EXPENSES:
Personnel services 136,867 1,955,449
Materials and supplies 12 164,474
Maintenance 269,429 229,716
Depreciation 252,123 121,825
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
658,431 2,471,464
702,476 253,261
NON-OPERATING REVENUES:
Other revenues 6,114,956 14,655
Investment income 10,982 7,716
TOTAL NON-OPERATING REVENUES 6,125,938 22,371
INCOME (LOSS) BEFORE TRANSFERS 6,828,414 275,632
TRANSFER IN (OUT) 54,910
CHANGE IN NET POSITION 6,828,414 330,542
NET POSITION - BEGINNING OF YEAR 28,046,226 3,889,499
NET POSITION - END OF YEAR $ 34,874,640 $ 4,220,041
See accompanying notes to financial statements.
33
CITY OF RANCHO PALOS VERDES
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2014
Business -type Governmental
Activity Activities
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
CASH FLOWS FROM OPERATING
ACTIVITIES:
Receipts from interfund services provided $ - $ 2,724,725
Receipts from storm drain user fees 1,368,966
Payments to suppliers (269,441) (342,544)
Payments to employees (137,523) (1,954,810)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 962,002 427,371
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (6,727,338) (69,682)
Transfer from other funds - 54,910
NET CASH PROVIDED (USED) BY
CAPITAL AND FINANCING ACTIVITIES (6,727,338) (14,772)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Interest received on investments 10,567 8,039
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (5,754,769) 420,638
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 10,846,912 3,541,011
CASH AND CASH EQUIVALENTS -
END OFYEAR $ 5,092,143 $ 3,961,649
RECONCILIATION OF OPERATING LOSS
TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Operating income (loss) $ 702,476 $ 253,261
Adjustments to reconcile operating income
(loss) to net cash used by operating activities:
Depreciation 252,123 121,825
Changes in operating assets and
liabilities:
Decrease (increase) in other receivable 8,059 403
Decrease (increase) in prepaid items 91,966
Increase (decrease) in accrued liabilities (656) (40,084)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
See accompanying notes to financial statements.
34
962,002 $ 427,371
CITY OF RANCHO PALOS VERDES
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUND
June 30, 2014
Successor Agency
to the
Rancho Palos Verdes
Redevelopment Agency
Private -Purpose Trust Fund
ASSETS
Cash and investments $ 528,852
Receivables:
Interest 210
Notes 104,936
Prepaid items 438,794
Land 154,800
TOTAL ASSETS 1,227,592
LIABILITIES
Accounts payable and accrued liabilities
Short-term liability
Due within one year - bond payable
Long-term liabilities
Due beyond one year - Portuguese Bend
Due beyond one year - Abalone Cove
Due beyond one year - bond payable
1,824
155,000
8,627,610
3,460,994
4,655,000
TOTAL LIABILITIES 16,900,428
NET POSITION (DEFICIT) HELD IN TRUST $ (15,672,836)
See accompanying notes to financial statements.
35
CITY OF RANCHO PALOS VERDES
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
For the year ended June 30, 2014
Successor Agency
to the
Rancho Palos Verdes
Redevelopment Agency
Private -Purpose Trust Fund
ADDITIONS
Taxes $ 360,352
Use of money and property 864
TOTAL ADDITIONS 361,216
DEDUCTIONS
Administration
Debt interest and fiscal charges
150,804
273,901
TOTAL DEDUCTIONS 424,705
CHANGE IN NET POSITION (63,489)
NET POSITION (DEFICIT) - BEGINNING OF YEAR (15,609,347)
NET POSITION (DEFICIT) - END OF YEAR $ (15,672,836)
See accompanying notes to financial statements.
36
NOTES TO FINANCIAL STATEMENTS
37
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
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 criteria used in determining the scope of the reporting entity are based on the
provisions of GASB Statement 61. 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.
38
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
The following specific criteria were used in determining that the Authority is a
"blended" component unit.
1. The members of the City Council also act as members of the Authority Board.
2. The Authority is fiscally dependent on the City, and there is potential for the
Authority to impose specific financial burdens on the City; as the City
subsidizes maintenance operations performed by the Authority and the City
is legally liable for facilities maintained by the Authority.
Separately issued financial statements for the Authority may be obtained at the City's
administrative offices.
The Successor Agency does not meet the criteria for reporting as a component unit,
as it is not fiscally dependent on the City. In addition, the business of the Successor
Agency must be approved by an independently appointed Oversight Board and the
California Department of Finance. Therefore, the balances and transactions of the
Successor Agency are reported as a separate Fiduciary Fund (private purpose trust
fund), and are not included in the government-wide statements.
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 pvtransitapalosverdes.com or mailing a request to
P.O. Box 2656, Palos Verdes Peninsula, CA 90274.
B. Description of Funds
The accounts of the City are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted
39
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
for with a separate set of self -balancing accounts that comprise its assets, liabilities,
fund equity, revenues, and expenditures. The following are types of funds used:
Governmental Fund Types
• General Fund — Used to account for all financial resources except those that are
required to be accounted for in another fund. The financial resources accounted for
in the General Fund may be used to fund any City program.
• Special Revenue Funds — Used to account for the proceeds of specific revenue
sources that are restricted by law or administrative action for specified purposes.
• Capital Projects Funds — Used to account for financial resources used for the
construction of specific capital projects.
• Permanent Funds — Used to account for resources legally restricted to the extent
that only earnings, and not principal, may be used for purposes that support the
reporting government's programs.
Proprietary Fund Types
• Enterprise Fund — Used to finance and account for the acquisition, operation, and
maintenance of the City's facilities and services; which are supported primarily by
user charges.
• Internal Service Funds — Used to centralize the accounting for employee benefits
costs, purchases and maintenance of equipment 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.
C. Basis of Accounting/Measurement Focus
Government — Wide Financial Statements
The City's Government -Wide Financial Statements include a "Statement of Net
Position" and a "Statement of Activities". These two statements present summaries
of Governmental and Business -type Activities for the City; and do not include
fiduciary activities. These statements are presented on an "economic resources"
40
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
measurement focus and the accrual basis of accounting. Accordingly, all of the
City's assets and liabilities, including capital assets, infrastructure, and long-term
debt, are included in the accompanying Statement of Net 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 has presented all major funds that
met qualifications of GASB Statement No. 34.
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
and current liabilities 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
41
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
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.
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 Street Maintenance Special Revenue Fund is used to account for state -shared
highway users' tax that is restricted to use for street maintenance, right-of-way
acquisition and street construction.
The Capital Improvement Capital Projects Fund is used to account for funds used
for the City's capital improvement projects.
Proprietary Fund Financial Statements
Proprietary fund types are accounted for using the "economic resources"
measurement focus and accrual basis of accounting. This means that all assets and
liabilities (whether current or non-current) associated with the activity are included
on the balance sheet. Fund equity is presented as total net position. The operating
statement of proprietary funds presents increases (revenues) and decreases
(expenses) in total net position. Revenues are recognized when they are earned and
expenses are recognized when the liability is incurred.
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services
and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the City's enterprise and
internal service funds are charges for services. Operating expenses for the
enterprise and internal service funds include the costs of services, employee
benefits, maintenance of capital assets, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
The City uses the internal service funds to finance and account for goods and
services provided by one City department to other City departments, including the
purchase and maintenance of equipment, replacement of buildings and payment of
employee benefits. The City's internal service funds are presented in the proprietary
funds financial statements. Because the principal users of the internal services are
42
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
the City's governmental activities, the financial statements of the internal service
funds 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.).
The City reports the following major enterprise fund
The Water Quality Flood Protection Fund is used to account for voter approved
storm drain user fees used to repair and replace the City's storm drain facilities.
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. Budaetary Accounting
Annual budgets are adopted on a basis consistent with accounting principles
generally accepted in the United States of America for all governmental funds. All
annual appropriations lapse at fiscal year-end. Budget control is maintained over all
accounts, and expenditures are not allowed to exceed appropriations at the program
level. Throughout the year, the City Council made several supplementing budgetary
adjustments to the General fund, Special Revenue funds, Capital Projects funds,
Proprietary funds and Permanent funds. These adjustments resulted in a net
appropriation increase in the amount of $7,618,353. This increase was primarily a
result of appropriations continued from FY12-13 in the amount of $28.7 million, an
increase to the appropriation for the Palos Verdes Drive East rehabilitation project
in the amount of $962,143, appropriation of the Malaga Canyon open space land
purchase for $1.1 million, and appropriations continued to FY14-15 in the amount of
$23.6 million.
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
43
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
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, 2014,
based on calculations by City Management, proceeds of taxes did not exceed
related appropriations.
E. Capital Assets
Capital assets include land, construction in progress, building and improvements,
vehicles, computer equipment, furniture, fixtures and equipment, and infrastructure
assets (street systems, storm drains, sewer systems, etc.). Capital assets are
defined by the City as all land and buildings, vehicles, computers and equipment
with an initial individual cost of more than $5,000; and improvements and
infrastructure assets with costs of more than $100,000. Such assets are recorded
at historical cost or estimated historical cost if purchased or constructed. Donated or
annexed capital assets are recorded at estimated market value at the date of
donation or annexation.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized. Depreciation is recorded
in the Government -Wide Financial Statements on a straight-line basis over the
useful life of the assets as follows:
Buildings and Improvements
Vehicles, Computers, and Equipment
Infrastructure Assets
Roadway Network
Sewer Network
Storm Drain Network
Parks and Recreation Network
F. Employee Compensated Absences
25 to 50 years
3 to 10 years
10 to 100 years
25 to 50 years
30 to 100 years
25 years
City employees may receive from 10 to 20 days 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.
44
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
The General Fund will primarily be used to liquidate the liability for compensated
absences in future years. Any liability for compensated absences is only carried in
the General Fund if there is unused/unpaid leave outstanding following an
employee's separation.
G. Investments
Investments are stated at fair value (quoted market price or the best available
estimate, thereof).
H. Cash and Cash Equivalents
The Water Quality Flood Protection Enterprise Fund and the Internal Service Funds
participate in the pooling of City-wide cash and investments. Amounts from the pool
are available to these funds on demand. Therefore the cash and investments
reported in these funds are considered to be cash and cash equivalents for purpose
of the statement of cash flows.
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 and the Employee Benefits Fund.
J. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items using the consumption method. In governmental
funds, the prepaid assets recorded do not reflect current appropriable resources and
thus, an equivalent portion of fund balance is reported as non -spendable. The City
had a total of $219,098 ($102,988 in governmental funds and $116,110 in internal
service funds) of prepaid items as of June 30, 2014.
K. Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
45
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
L. Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City's
policy to use restricted resources first. When unrestricted resources (committed,
assigned or unassigned) are available for use, it is the City's policy to use committed
resources first, assigned resources second and finally unassigned resources.
M. Deferred Inflows and Outflows
When net position is increased by a transaction that is applicable to a future reporting
period, it is the City's policy to report a deferred inflow of resources. Conversely,
when net position is decreased by a transaction that is applicable to a future
reporting period, it is the City's policy to report a deferred outflow of resources.
N. New Pronouncements
GASB Statement No. 65 — Items Previously Reported as Assets and Liabilities. In
March 2012, the GASB established accounting and financial reporting standards
that reclassify, as deferred outflows of resources or deferred inflows of resources,
certain items that were previously reported as assets and liabilities and recognizes,
as outflows of resources or inflows of resources, certain items that were previously
reported as assets and liabilities. The statement has been implemented with the
June 30, 2014 financial statements.
GASB Statement No. 68 — Accounting and Financial Reporting for Pension — an
amendment of GASB Statement No. 27. In June 2012, the GASB improved
accounting and financial reporting by state and local governments for pensions. It
also improves information provided by state and local governmental employers
about financial support for pensions that is provided by other entities. This
Statement results from a comprehensive review of the effectiveness of existing
standards of accounting and financial reporting for pensions with regard to providing
decision -useful information, supporting assessments of accountability and inter -
period equity, and creating additional transparency. This statement is not effective
until June 30, 2015. The City has not determined its effect on the financial
statements.
GASB Statement No. 69 — Government Combinations and Disposals of Government
Operations. In January 2013, the GASB established accounting and financial
reporting standards related to government combinations and disposals of
government operations; including a variety of transactions referred to as mergers,
46
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
acquisitions, and transfers of operations. This statement is not effective until June
30, 2015. The City has not determined its effect on the financial statements.
GASB Statement No. 71 — Pension Transition for Contributions Made Subsequent
to the Measurement Date — An Amendment of GASB Statement No. 68. In
November 2013, the GASB addressed an issue relating to amounts associated with
contributions made by a government employer to a defined benefit pension plan
after the measurement date of the government's beginning net pension liability. This
statement is not effective until June 30, 2015. The City has not determined its effect
on the financial statements.
NOTE #2 — CASH AND INVESTMENTS
Cash and investments as of June 30, 2014, are classified in the accompanying
financial statements as follows:
Total cash and investments
Govemment-Wide Fiduciary Fund
Statement of Statement of Fiduciary
Net Position Net Position
$ 57, 502, 954 $
Total
528,852 $ 58, 031, 806
Cash and investments as of June 30, 2014 consist of the following:
Petty Cash $ 2,500
Deposits with Financial Institution 10,229,118
Local Agency Investment Fund (LAIF) 47,800,188
$ 58, 031, 806
Investments Authorized by the California Government Code and the City of
Rancho Palos Verdes' Investment Policy
The table below identifies the investment types that are authorized for the City of
Rancho Palos Verdes by the California Government Code (or the City's investment
policy, where more restrictive). The table also identifies certain provisions of the
California Government Code (or the City's investment policy, where more restrictive)
that address interest rate risk, credit risk, and concentration of credit risk
Maximum
Amount or Maximum
Maximum Percent of in One
Authorized Investment Type Maturity Portfolio Issuer
U.S. Treasury Obligations 3 years None None
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 7 days 15% None
Money Market Mutual Funds N/A 15% 15%
Local Agency Investment Fund (LAIF) N/A None None
Money Market Savings/Demand Deposits N/A $5 million 15%
47
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
On June 30, 2014, the City held demand deposits of $9,029,118. Per the investment
policy, amounts may exceed $5 million or 15% for no more than thirty days if the
accounts are to hold monies being transitioned. The City was in the process of
transitioning bank services as directed by the City Council. The balance was reduced
to below the $5 million amount by August 2014.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect
fair value of an investment. Generally, the longer the maturity of an investment, there
is a greater sensitivity of its fair value to changes in market interest rates. The City
manages its exposure to interest rate risk by investing with the Local Agency
Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity need
for operations. The City's investment is represented by shares in the pool, which can
be withdrawn in one business day. The average maturity of the pool is less than one
year.
Remaining
Maturity
12 Months
Investment Type or Less
Local Agency Investment Fund (LAIF) $ 47,800,188
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of a
rating by a nationally recognized statistical rating organization. The City's LAIF
investment is not rated.
Concentration of Credit Risk
The investment policy of the City of Rancho Palos Verdes contains no limitations on
the amount that can be invested in any one issuer beyond that stipulated by the
California Government Code. As of June 30, 2014, the City's investments in LAIF
were exempt from concentration of credit risk disclosure.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its deposits
or will not be able to recover collateral securities that are in the possession of an
outside party. The custodial credit risk for investments is the risk that, in the event of
the failure of the counterparty (e.g., broker-dealer) to a transaction, a government
will not be able to recover the value of its investment or collateral securities that are
48
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
in the possession of another party. The California Government Code and the City of
Rancho Palos Verdes' investment policy do not contain legal or policy requirements
that would limit the exposure to custodial credit risk for deposits or investments, other
than the following provision for deposits: The California Government Code requires
that a financial institution secure deposits made by state or local governmental units
by pledging securities in an undivided collateral pool held by a depository regulated
under state law (unless so waived by the governmental unit). The market value of
the pledged securities in the collateral pool must equal at least 110 percent of the
total amount deposited by the public agencies. California law also allows financial
institutions to secure City deposits by pledging first trust deed mortgage notes having
a value of 150 percent of the secured public deposits.
Of the City's deposits with financial institutions, $8,554,456 was in excess of federal
depository insurance limits. The uninsured deposits were held by financial
institutions, which are legally required by the California Government Code to
collateralize the City's deposits as noted above.
Investment in Local Agency Investment Fund (LAIF)
The City of Rancho Palos Verdes is a voluntary participant in LAIF that is regulated
by California Government Code Section 16429 under the oversight of the Treasurer
of the State of California. The fair value of the City of Rancho Palos Verdes'
investment in this pool is based upon the City of Rancho Palos Verdes' pro -rata
share of the fair value provided by LAIF for the entire pool portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on
the accounting records maintained by LAIF, which are recorded on an amortized
cost basis.
LAIF is a governmental investment pool managed and directed by the Treasurer of
the State of California and is not registered with the Securities and Exchange
Commission. An oversight committee comprised of California State officials and
various other participants provides oversight to the management of the fund. The
daily operations and responsibilities of LAIF fall under the auspices of the State
Treasurer's office.
NOTE #3 — INTERFUND TRANSACTIONS
Interfund balances consisted of the following at June 30, 2014:
49
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
E
0
ii
a)
0
Measure A Fund
CDBG Fund
1 Due To I
General
Fund
$ 47,633
28,430
Total: $ 76,063
General fund cash was used to cover grant expenditures in the Measure A Fund and
the Community Development Block Grant (CDBG) Fund, until reimbursement is
received from the granting agencies.
Inter -fund Transfers
Inter -fund transfers for the year ended June 30, 2014, consisted of the following:
Transfer To
General Fund $
Street Maintenance
Capital Improvement Projects
Other Governmental Funds
Internal Service Funds
Totals:
General
Fund
8,396,111
351,700
$ 8,747,811
Transfer From
Other
Governmental
Funds Totals
$ 167,441 $ 167,441
1,063,696 1,063,696
445,441 8,841,552
351,700
54,910 54,910
$ 1,731,488 $10,479,299
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 $8,396,111 to the Capital Improvement Projects (CIP)
Fund. The transfer included $5,959,143 of funding for the CIP Reserve for future
infrastructure projects, as required by the City Council's Reserve Policy; an
additional $563,554 for future projects as directed by City Council; and $1,873,414
of funding for the annual residential street rehabilitation program. The Street
Maintenance Fund received $1,063,696, which includes transfers of: $190,000 from
the 1972 Act Fund for street landscape maintenance; $211,404 from the
Beautification Fund for median maintenance; $41,292 from the Waste Reduction
Fund, of which $30,000 is for mulch from tree trimming and $11,292 is for litter
50
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
abatement from medians; $99,000 from the 1911 Act Fund for traffic signal
maintenance; and $522,000 of Proposition C money for roadway maintenance within
the landslide area.
NOTE #4 — CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital assets
including infrastructure in the Government -Wide Statement of Net 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, 2014.
Governmental Activities Balance Increases Decreases Balance
Capital assets not being depreciated:
Land $ 39,900,962 2,031,813 $ 41,932,775
Construction in progress 2,561,227 2,900,258 (4,094,737) 1,366,748
Total capital assets not being depreciated 42,462,189 4,932,071 (4,094,737) 43,299,523
Capital assets being depreciated:
Building and improvements 9,379,539 267,799 9,647,338
Vehicles 301,919 54,910 (47,709) 309,120
Computer equipment 738,724 29,427 (72,078) 696,073
Furniture, fixtures and equipment 549,735 (178,772) 370,963
Infrastructure
Roadway system 90,717,588 3,075,743 93,793,331
Sewer system 25,965,995 25,965,995
Storm drain system 13,148,416 13,148,416
Parks system 6,849,972 616,111 7,466,083
Total capital assets being depreciated 147,651,888 4,043,990 (298,559) 151,397,319
Less accumulated depreciation for:
Buildings and improvements (2,629,585) (213,882) (2,843,467)
Vehicles (269,568) (19,423) 47,709 (241,282)
Computer equipment (608,870) (73,959) 72,078 (610,751)
Furniture, fixtures and equipment (462,265) (28,443) 178,772 (311,936)
Infrastructure
Roadway system (46,702,227) (2,535,463) (49,237,690)
Sewer system (18,223,881) (453,822) (18,677,703)
Storm drain system (3,468,433) (250,479) (3,718,912)
Parks system (4,464,801) (163,759) (4,628,560)
Total accumulated depreciation (76,829,630) (3,739,230) 298,559 (80,270,301)
Total capital assets being depreciated, net 70,822,258 304,760 - 71,127,018
Governmental activities capital assets, net $ 113,284,447 5,236,831 (4,094,737) $ 114,426,541
Depreciation expense was charged to functions/programs of the primary
government as follows:
51
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
Administration (depreciation of buildings)
Public Works (depreciation of roadways, sewers, and storm drains)
Recreation Services (depreciation of parks system)
Capital assets held by the City's internal service funds are charged
to the various functions based on their usage of the assets
Total Depreciation Expense — Governmental Activities
Business -type Activities
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Equipment
Storm drain system
Total capital assets being depreciated
Less accumulated depreciation for:
Equipment
Storm drain system
Total accumulated depreciation
Total capital assets being depreciated, net
Business -type activities capital assets, net
$ 213,882
3,239,764
163,759
121,825
$3.739.230
Beginning
Balance Increases Decreases
$ 1,408,493 19,750
6,031,125 11,470,710
7,439,618 11, 490, 460
11,813
12, 034,178
12, 045, 991
251,878
251,878
(11,813)
(1,154,816) (252,123)
(1,166,629) (252,123)
Ending
Balance
$ 1,428,243
(251, 878) 17, 249, 957
(251, 878) 18, 678, 200
11,813
12,286,056
12, 297, 869
(11,813)
(1,406, 939)
(1,418,752)
10, 879, 362 (2451 10, 879,117
$18,318,980 11, 490, 215 (251, 878) $29,557,317
Depreciation expense of $252,123 is included in the Water Quality Flood Protection
enterprise fund.
NOTE #5 — LONG-TERM NOTES RECEIVABLE
Long -Term Notes Receivable
City Affordable Housing In -Lieu
City Low -Moderate Income Housing
Community Development Block Grant
Subtotal:
Receivable from Successor Agency
Allowance from Successor Agency receivable
Total Long -Term Notes Receivable:
Governmental
Activities
$ 7,707,864
Long -Term
Notes Receivable
$
1,420,382
5,755,928
531,554
7,707,864
12, 088, 604
(12, 088,604)
$ 7,707,864
52
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
The Receivable from Successor Agency is discussed further in Note #14.
Affordable Housing
In March 2009, the former Redevelopment Agency (RDA) entered into a Disposition
and Development Agreement (DDA) with AMCAL Mirandela Fund LP (AMCAL).
Under the DDA, the former RDA provided financial assistance to AMCAL in an
amount up to $6,790,000 to develop a thirty-four unit senior housing project. The
loan accrues simple interest at a rate of 3% per annum on the amounts disbursed.
The balance of notes receivable from AMCAL including accrued unpaid interest of
$779,447 at June 30, 2014 was $7,049,990.
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.
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, 2014 is $531,554.
NOTE #6 — LONG-TERM DEBT
Balance Balance Amount Due
July 1, 2013 Additions Deletions June 30, 2014 in One Year
Employee Compensated Absences 363,107 275,141 (287,774) 350,474 277,761
Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences. Based
on historical trends, $277,761 estimated to be the amount that will be used and/or
paid out during the fiscal year ended June 30, 2015.
53
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE #7 — CLASSIFICATIONS OF NET POSITION AND FUND BALANCE
Government -Wide Financial Statements
In the Government -Wide financial statements net position is classified in the
following categories:
Net Investment in Capital Assets
This category groups all capital assets, including infrastructure, into one component
of net position. Accumulated depreciation on these assets reduces this category as
does any outstanding balance on debt incurred in acquiring or constructing the
capital assets.
Restricted Net position
This category presents external restrictions imposed by creditors, grantors,
contributions or laws or regulations of other governments and restrictions imposed
by law through constitutional provisions or enabling legislation.
Unrestricted Net position
This category represents the difference between total net position and the two
categories noted above: Net Investment in Capital Assets and Restricted Net
position.
Fund Financial Statements
The fund balances reported on the fund statements consist of the following
categories:
Non -spendable — Amounts that are not in a spendable form (such as inventory and
prepaid expenditures) or are legally required to be maintained intact (such as the
corpus of an endowment fund).
Restricted — Amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government), through constitutional
provisions, or by enabling legislation.
Committed — Amounts constrained to specific purposes by the City Council via a
City Council resolution or ordinance, which are considered to be equally binding. To
be reported as committed, amounts cannot be used for any other purpose unless
the City Council adopts another resolution to remove or change the constraint.
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CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
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.
The City's governmental fund balances were classified as follows at June 30, 2014:
Street Capital Other
General Maintenance Improvement Governmental
Fund Fund Fund Funds
Nonspendable:
In Form (inventory and prepaid) $ 143,902 $ - $ - $ -
Legally - - - 1,750,000
Habitat Restoration - - - 95,194
Restricted
Public Works - 1,271,895 - 8,674,920
Committed
Public Works - - - 58,235
Assigned - - 18,011,254 1,317,369
Unassigned:
Rainy Day Fund 13,839,226 - - -
Continued Appropriations 1,042,056 - - -
Utility User Tax Claim Account 593,301 - - -
Deficit Fund Balance - - - (116,304)
Governmental Fund Balance Totals $15,618,485 $ 1,271,895 $ 18,011,254 $ 11,779,414
Non -spendable Fund Balance
• General Fund assets include $40,914 of inventory held for resale at the Point
Vicente Interpretive Center gift shop, and $102,988 of prepayments for
expenditures related to the fiscal year ended June 30, 2015.
• The fund balance of the Improvement Authority's Abalone Cove Fund
includes a $1,000,000 non -spendable fund balance, as required by a
Reimbursement and Settlement Agreement dated October 27,1987 in
connection with the Horan Lawsuit (discussed further in Note #14).
• The fund balance of the Subregion One Maintenance Fund includes a
$750,000 non -spendable endowment, as required by the developer
agreement for the Subregion One tract.
• Beginning with the fiscal year ended June 30, 2006, the City's Natural
Communities Conservation Plan requires an endowment in the Habitat
Restoration Fund to be funded at the rate of $10,000 annually (plus interest)
for fifty (50) years, to provide for maintainance of habitat in the future. The
balance of $95,194 represents 9 years of annual $10,000 contributions plus
interest earnings.
55
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
Restricted Fund Balance
• The balances of the City's Special Revenue Funds, including California
Highway User Tax apportionments in the Street Maintenance Fund, are
constrained to use for specific purposes by other governmental agencies.
Committed Fund Balance
• The balance of the Abalone Cove Sewer District Fund is committed, via
ordinance, for maintenance of the sewer system.
Assigned Fund Balance
• The $18,011,254 balance of the Capital Improvement Projects Fund has
bene assigned for the planning, design and construction of infrastructure
projects.
• The $793,921 balance of the Beautification Fund has been assigned for
beautification projects within the City's right-of-way, as well as the promotion
of recycling and beautification programs.
• Balances totaling $523,448 within the Low -Moderate Income Housing Fund
and the Affordable Housing In -Lieu Fund have been assigned for the
provision of affordable housing within the City.
Unassigned Fund Balance
• City Council Policy No. 41 — Reserve Policies, adopted via resolution,
requires the City to maintain a minimum General Fund balance of at least fifty
percent of annual operating expenditures. This reserve serves as a Rainy
Day Fund with a balance of $13,874,226 at June 30, 2014.
• On September 2, 2014, the City Council adopted a resolution to carry forward
$1,042,056 of fiscal year 2013-14 General Fund appropriations to fiscal year
2014-15.
• On August 19, 2014, the City Council adopted a resolution to create a Utility
User Tax (UUT) Claim Account, funded with telecommunications revenue
received since August 13, 2013 (see further discussion in Note #10). The
calculated estimate of Telecommunications UUT received from August 13,
2013 through June 30, 2014 is $593,301.
• Deficit fund balances of $47,633 in the Measure A Fund and $68,671 in the
Community Development Block Grant Fund have been reported as
unassigned.
NOTE #8 — PENSION AND RETIREMENT HEALTH SAVINGS PLANS
Pension Plan Description
The City provides a defined benefit pension plan that includes retirement and
disability benefits, annual cost -of -living adjustments, and death benefits to plan
members and beneficiaries. The City contracts with the California Public
56
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
Employee's Retirement System (CalPERS), a cost-sharing, multi-employer public
employee defined benefit pension plan administered by CalPERS. CalPERS
provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries. State statutes, within the Public
Employees' Retirement Law, establish benefit provisions and other requirements.
The City selects optional benefit provisions from the benefit menu by contract with
CalPERS and adopts those benefits through local ordinance. Copies of the
CalPERS annual financial report may be obtained from the CalPERS Executive
Office at 400 P Street, Sacramento, California 95814 or downloaded from their
website at www.calpers.gov.
Pursuant to City Council action on October 2, 2012 to reduce pension benefits for
future employees and the California Public Employees' Pension Reform Act of 2012,
the City now has 3 tiers of defined pension benefits. For employees hired prior to
October 2, 2012, the City participates in a Miscellaneous 2.5% at 55 Risk Pool (1St
Tier). For employees hired after October 2, 2012 but before January 1, 2013 and
employees hired after January 1, 2013 that have participated in a reciprocating
California public employee pension plan within six months of being hired by the City,
the City participates in a Miscellaneous 2% at 60 Risk Pool (2nd Tier). For all other
employees hired after January 1, 2013, the City participates in a Miscellaneous 2%
at 62 Risk Pool (3rd Tier).
Pension Plan Funding Policy
The contribution requirements of plan members are established by State statute and
the employer contribution rate is established and amended by CalPERS.
Active City employees are required to contribute the full "employee" share of pension
cost (8% of their annual covered salary for 1St Tier coverage, 7% for 2nd Tier
coverage, and 6.25% for 3rd Tier coverage). The City is required to contribute the
actuarially determined remaining amounts necessary to fund the benefits for its
members. During the fiscal year ended June 30, 2014, the City's contribution rates
for the Pension Plan were as follows.
Percentage of
Covered Payroll
1st Tier 14.66%
2nd Tier 8.05%
3rd Tier 6.25%
As a result of having less than 100 active members as of June 30, 2003, the City
was required to participate in a risk pool. The City's pooled employer contribution
rate is the same as the stand-alone employer contribution rate.
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CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
The City's contributions to CaIPERS for the most recent three years follow.
Annual Pension Cost Percentage of
Employer Annual Pension Cost Net Pension
Year Ended Contribution Contributed Obliaation
June 30, 2014 $847,847 100% 0
June 30, 2013 $698,501 100% 0
June 30, 2012 $658,481 100% 0
Retirement Health Savings Plan
On November 17, 2009, the City approved the establishment of a defined
contribution Retirement Health Savings Plan (the "Plan") for its full-time employees.
The Plan is a Health Reimbursement Arrangement ("HRA") within Sections 105 and
106 of the Internal Revenue Code. The Plan assets are managed in a non-taxable
trust as described in Section 501(c)(9) of the Internal Revenue Code. The City is
the Plan Administrator, and utilizes the services of a contracted financial services
provider for day-to-day administration of contributions and disbursements. The City
has the authority to amend the Plan's provisions and contribution requirements.
The City has no obligation to make contributions to the Plan, but as part of the annual
budget process the City may elect to make contributions to the Plan. Employees are
required to contribute 1 % of their gross wages to their account, which is owned by
the employee. During the fiscal year ended June 30, 2014, the City contributed a
total of $68,767 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 Employee Benefits internal
service fund in the City's financial statements.
NOTE #9 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION
Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority (Authority).
The Authority is composed of 119 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.
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CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
Self -Insurance Programs of the CJPIA
Each member pays an annual contribution to cover estimated losses for the
coverage period. This initial funding is paid at the beginning of the coverage period.
After the close of the coverage period, outstanding claims are valued. A
retrospective deposit computation is then conducted annually thereafter until all
claims incurred during the coverage period are closed on a pool -wide basis. This
subsequent cost re -allocation among members based on actual claim development
can result in adjustments of either refunds or additional deposits required.
The total funding requirement for self-insurance programs is estimated using
actuarial models and pre -funded through the annual contribution. Costs are
allocated to individual agencies based on exposure (payroll) and experience (claims)
relative to other members of the risk -sharing pool. Additional information regarding
the cost allocation methodology is provided below.
General Liability
In the liability program claims are pooled separately between police and non -police
exposures. (1) The payroll of each member is evaluated relative to the payroll of
other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $30,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within
the first layer. (3) The second layer of losses includes incurred costs from $30,000
to $750,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up
to the reinsurance attachment point of $5 million are distributed based on the
outcome of cost allocation within the first and second loss layers. (5) Costs of
covered claims from $5 million to $10 million are paid under a reinsurance contract
subject to a $2.5 million annual aggregate deductible. The $2.5 million annual
aggregate deductible is fully covered under a separate policy; as such no portion of
it is retained by the Authority. Costs of covered claims from $10 million to $15 million
are paid under two reinsurance contracts subject to a combined $3 million annual
aggregate deductible. The $3.0 million annual aggregate deductible is fully retained
by the Authority. (6) Costs of covered claims from $15 million to $20 million are paid
under reinsurance agreements. (7) Costs of covered claims from $20 million to $50
million are paid under excess insurance policies.
The overall coverage limit for each member including all layers of coverage is $50
million per occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess
insurance with a pooled sub -limit of $30 million per occurrence. This $30 million
59
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
subsidence sub -limit is composed of (a) $5 million retained within the pool's SIR, (b)
$15 million in reinsurance, subject to the same annual aggregate deductibles
previously stated, and (c) $10 million in excess insurance. The excess insurance
layer has a $10 million annual aggregate limit.
Workers' Compensation
In the workers' compensation program claims are pooled separately between public
safety (police and fire) and non-public safety exposures. (1) The payroll of each
member is evaluated relative to the payroll of other members. A variable credibility
factor is determined for each member, which establishes the weight applied to
payroll and the weight applied to losses within the formula. (2) The first layer of
losses includes incurred costs up to $50,000 for each occurrence and is evaluated
as a percentage of the pool's total incurred costs within the first layer. (3) The
second layer of losses includes incurred costs from $50,000 to $100,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within
the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance
attachment point of $2 million are distributed based on the outcome of cost allocation
within the first and second loss layers. (5) Costs of covered claims from $2 million
up to statutory limits are paid under a reinsurance policy. Protection is provided per
statutory liability under California Workers' Compensation Law.
Employer's Liability losses are pooled among members to $2 million. Coverage from
$2 million to $5 million is purchased as part of a reinsurance policy, and Employer's
Liability losses from $5 million to $10 million are pooled among members.
Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program (formerly called
environmental insurance) which is available through the Authority. The policy covers
sudden and gradual pollution of scheduled property, streets, and storm drains
owned by the City of Rancho Palos Verdes. Coverage is on a claims -made basis.
There is a $50,000 deductible. The Authority has a limit of $50 million for the 3 -year
period from July 1, 2011 through July 1, 2014. Each member of the Authority has a
$10 million sub -limit during the 3 -year term of the policy.
Property Insurance
The City 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.
60
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
City of Rancho Palos Verdes property currently has all-risk property insurance
protection in the amount of $14,975,087. There is a $5,000 deductible per
occurrence except for non -emergency vehicle insurance which has a $1,000
deductible. Premiums for the coverage are paid annually and are not subject to
retrospective adjustments.
Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property. The
earthquake insurance is part of the property protection insurance program of the
Authority. City of Rancho Palos Verdes property currently has earthquake protection
in the amount of $14,715,495. There is a deductible of 5% per unit of value with a
minimum deductible of $100,000. Premiums for the coverage are paid annually and
are not subject to retrospective adjustments.
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a
$2,500 deductible. The fidelity coverage is provided through the Authority.
Premiums are paid annually and are not subject to retrospective adjustments.
Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain
property to purchase low-cost tenant user liability insurance for certain activities on
agency property. The insurance premium is paid by the tenant user and is paid to
the City of Rancho Palos Verdes according to a schedule. The City of Rancho Palos
Verdes then pays for the insurance. The insurance is arranged by 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
fiscal year 2013-14.
NOTE #10 — CONTINGENCIES AND COMMITMENTS
Litigation
In the normal course of operations, the City has been named as a defendant in
various claims and legal actions. Generally, unfavorable results of these claims and
legal actions are funded through the City's participation in California Joint Powers
Insurance Authority (CJPIA, see Note #9) and, as such, the City believes that the
61
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
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.
Legal actions that could result in an unfavorable outcome material to the City's
financial statements are discussed below.
Claim for Utility User Tax Refund
On August 13, 2014, a City resident taxpayer filed a class action lawsuit pertaining
to the collection of the City's 3% Utility User Tax (UUT) on telecommunications
services. The complaint seeks refund of telecommunications UUT back to August
1, 2006, plus interest, estimated at more than $5 million. However, the City's
Municipal Code limits claims for tax refunds to one year. On August 19, 2014, the
City Council took action to immediately suspend collection of telecommunications
UUT, and transfer all such revenue received since August 13, 2013 (the beginning
of the one year claim period) to a UUT Claim Account to be used for refunds to
taxpayers (discussed further in Note #7). At June 30, 2014, the balance of the Claim
Account is $593,301. Any telecommunications revenue received during the fiscal
year ended June 30, 2015 will also be deposited to the Claim Account. No liability
has been recorded for telecommunications UUT collected prior to the beginning of
the one-year claim period allowed by the City's Municipal Code.
Green Hills Memorial Park
In 2007, the City's Planning Commission approved revisions to a master
development plan for Green Hills Memorial Park; which included construction of a
mausoleum along the Park's northern property line, including a reduction of the
setback from the property line from eighty (80) feet to eight (8) feet. The adjacent
property to the north is the Vista Verde condominium project in the City of Lomita.
The Park constructed the mausoleum. The City is currently reviewing the issue and
may determine that approval for the mausoleum should be rescinded. The City's
decision may result in a lawsuit for damages by either the Park or the condominium
project; which, in either case, may be significant. The City will defend itself
vigorously in this matter. No liability has been recorded for the potential lawsuit.
NOTE #11 — PROPERTY TAXES
Under California law, property taxes are assessed and collected by the counties up
to one percent of assessed value, plus other increases approved by the voters. The
property taxes go into a pool, and are then allocated to the cities based on complex
formulas. Accordingly, the City accrues only those taxes, which are received from
the county within sixty days after year-end.
62
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
Lien date
Levy date
Due date
Collection dates
January 1
June 30
November 1 and February 1
December 10 and April 10
NOTE #12 — UNAVAILABLE AND UNEARNED REVENUES
The unavailable and unearned revenues in the fund financial statements of the City
of Rancho Palos Verdes as of June 30, 2014 consisted of the following:
Revenue Measurable but Not Available (beyond 60 days):
General Fund
Street Maintenance Fund
Capital Improvement Projects Fund
Other Governmental Funds
$ 2,780
250
107,476
314,485
Total Unavaible Revenues $ 424,991
Advance balance on federal grant - NCCP
General Fund Total Unearned Revenue
$ 88,560
NOTE #13 — OTHER REQUIRED FUND DISCLOSURES
The following funds had deficit fund balances as of June 30, 2014:
Other Governmental Funds:
Measure A Special Revenue Fund $47,633
Community Development Block Grant Special Revenue Fund $68,671
The City plans to finance the fund deficits through future revenues.
The following budget program had expenditures in excess of the budget for the year
ended June 30, 2014, as follows:
Budget Expenditures Excess
General Fund Non -departmental $0 $35,000 $35,000
NOTE #14 — SUCCESSOR AGENCY
Under the Dissolution Act, each California redevelopment agency (each a
"Dissolved RDA") was dissolved as of February 1, 2012. A Successor Agency was
created for each Dissolved RDA which is the sponsoring community of the Dissolved
RDA unless it elected not to serve as the Successor Agency. On September 6, 2011,
the City elected to serve as the Successor Agency of the Rancho Palos Verdes
Redevelopment Agency.
63
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
The Dissolution Act allowed the sponsoring community that formed the Dissolved
RDA to elect to assume the housing functions and take over the certain housing
assets of the Dissolved RDA. The City elected on February 21, 2012 to serve as the
Housing Successor Agency. After the date of dissolution, the housing assets,
obligations, and activities of the Dissolved RDA have been transferred and are
reported in a special revenue fund in the financial statements of the City (City Low -
Moderate Income Housing Fund).
All other assets, obligations, and activities of the Successor Agency are reported in
a fiduciary fund (private -purpose trust fund) in the financial statements of the City.
The County Auditor -Controller is charged with establishing a Redevelopment
Property Tax Trust Fund (the "RPTTF") for each Successor Agency and depositing
into the RPTTF for each six-month period the amount of property taxes that would
have been redevelopment property tax increment had the redevelopment agency
not been dissolved. The deposit in the RPTTF fund is to be used to pay to the
Successor Agency's enforceable obligations for the upcoming six-month period.
The process of making RPTTF deposits to be used to pay enforceable obligations
of the Dissolved RDA will continue until all enforceable obligations have been paid
in full and all non -housing assets of the Dissolved RDA have been liquidated.
Non -Liquid Assets
The following non -liquid assets are included in the records of the Successor Agency.
Note receivable from:
Portuguese Bend Club Homeowners Association $104,936
Prepaid item 438,794
Land 154,800
Total Non -Liquid Assets $698.530
In 1999, the former Redevelopment Agency extended a $750,000 construction loan
to the Portuguese Bend Club Homeowners Association. The note is non-interest
bearing, and is to be repaid in 180 equal installments beginning in July 2001. The
Association is scheduled to continue making monthly payments of $4,167 through
August 2016, and the balance of the note receivable at June 30, 2014 is $104,936.
Prior to redevelopment dissolution, the County of Los Angeles pursuant to a
Memorandum of Understanding dated November 1, 1997 (discussed below)
impounded property tax increment allocated to the former redevelopment agency for
payment of debt owed to the County. The balance of the impounded tax increment
not yet been applied to debt at June 30, 2014 is $419,963, which is included in the
prepaid amount of $438,794 reported above.
64
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
The former Redevelopment Agency owned a number of parcels in the landslide area
of the City. Parcels totaling approximately 124 acres which are identified as Abalone
Cove Shoreline Park and adjacent open space were transferred from the County of
Los Angeles at no cost. The remaining parcels which provide right-of-way access
into the landslide area were originally purchased at a total cost of $154,800. At June
30, 2013, the land asset recorded in the financial statements of $166,296 mistakenly
included two parcels that were not owned by the former Redevelopment Agency.
The parcels had been acquired by the City through sales of tax -defaulted property
in 2007 and 2010 for a total cost of $11,496. The error was discovered when a title
search was performed during preparation of the Long -Term Property Management
Plan, as required by state dissolution law.
Debt Summary
Balance Balance Amounts Due
July 1, 2013 Additions Deletions June 30, 2014 in One Year
Due to City:
Portuguese Bend $ 8,606,181 $ 21,429 $ 8,627,610
Abalone Cove 3,452,397 8,597 3,460,994
Due to County:
Tax Increment Bond 4,945,000 (135,000) 4,810,000 155,000
Deferred Interest Payable 62,294 (62,294) -
Totals '5 17,065,872 $ 30,026 $ (197,294) $ 16,898,604 $ 155,000
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. City Management
expects that $72,915 of RPTTF revenue will be available to begin repayment of the
City's Consolidated Loan during the fiscal year ended June 30, 2015. As required
65
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
by dissolution law, twenty percent of the amount available will be deposited into the
City's Low -Moderate Income Housing Fund.
California Health and Safety Code Section 34191.4(b)(2) outlines the terms for
restructuring city loans to former redevelopment agencies as follows: "the
accumulated interest on the remaining principal amount of the loan shall be
recalculated from origination at the interest rate earned by funds deposited into the
Local Agency Investment Fund." Management's position is to apply the historical
Local Agency Investment Fund (LAIF) rate over the life of the loan (e.g. a 2011 rate
used to calculate 2011 interest), resulting in a balance of $12,088,604 at June 30,
2014.
Principal
Portuguese Bend $ 4,320,552
Abalone Cove 2,422,224
Allowance from Successor Agency Receivable (6,742,776)
Totals: $ -
Interest
$4,307,058
1,038,770
(5,345,828)
$ -
June 30, 2014
Balance
$ 8,627,610
3,460,994
(12, 088, 604)
$
The California Department of Finance (DOF) has provided information on its website
regarding the recalculation of accrued interest for city loans to redevelopment
agencies. The DOF's position appears to include application of a recent LAIF rate
(the earnings rate for the quarter during which the Oversight Board makes a finding
that the loan was made for legitimate redevelopment purposes, in this case the
quarter ended December 31, 2013) to the entire life of the loan. If the Consolidated
Loan from the City is recalculated using the DOF interpretation, the balance at June
30, 2014 would be approximately $7.1 million, including only about $0.3 million of
accrued interest.
Due to the differing interpretations between the DOF and City Management for the
calculation of accrued interest, the City's loan receivable of $12,088,604 has been
completely offset with an allowance for uncollectable amounts on the City's financial
statements. As further information becomes available, the allowance for
uncollectable amounts may be adjusted in future periods, potentially resulting in a
recognized net receivable for the City.
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.
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CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
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 was accounted for in the former Redevelopment
Agency's Abalone Cove Fund. Concurrent with the execution of the Agreement, the
County deeded its title in the Abalone Cove Beach Park to the former
Redevelopment Agency.
As part of the Agreement, the former Redevelopment Agency was required to
transfer 17 percent of tax increment revenue to the Consolidated Fire Protection
District of the County and 50.9 percent of tax increment revenue for debt repayment
to the County. In accordance with the Agreement, the former Redevelopment
Agency was to pay the Loan principal plus interest at 7.7654 percent over a 30 -year
period that began in 1992. However, these debt payments were to be deferred 10
years until the fiscal year ended June 30, 2002.
As part of the deferral arrangement, the accrued interest from the inception of the
Loan through June 30, 2002, in the amount of $7,314,944, was scheduled for
payment over a 20 -year period beginning in the fiscal year ended June 30, 2002 with
no additional interest. The remaining balance of $10,274,119 was scheduled for
payment to the County over a 20 -year period beginning in the fiscal year ended June
30, 2002, with interest at 7.7654 percent.
On November 1, 1997, the City, the former Redevelopment Agency and the County
of Los Angeles entered into a Memorandum of Understanding (MOU) agreeing to
restructure the repayment schedule of the debt owed to the County by the former
Redevelopment Agency. In accordance with the terms of the MOU, the $10,000,000
loan principal owed to the County was cancelled. As consideration for the loan
cancellation, the former Redevelopment Agency made a lump sum payment to the
County in the amount of $4,545,000 and issued a $5,455,000 tax increment bond to
the County (the bond). Of the $4,545,000 lump sum payment, $2,000,000 was paid
from tax increment revenue and interest earnings accumulated in the Debt Service
Fund. The remaining $2,545,000 was funded by a combination of a loan from the
General Fund of the City to the Agency for $1,545,000 and a net operating transfer
from the Agency's Abalone Cove Capital Projects Fund to the Debt Service Fund of
$1,000,000. The private property liens resulting from the formation of the bond
assessment district in connection with the Reimbursement and Settlement
Agreement in 1987 were discharged in accordance with the terms of the MOU.
67
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
The bond was issued as a conduit through the Improvement Authority to the County.
No issuance costs were incurred. Future allocations of property tax to the Successor
Agency will fund the payment of the bond debt and the deferred interest from the
original Loan until paid in full. The principal of the bond began maturing in
installments each December 2nd, commencing December 2, 2004. Interest accrues
at a rate of 5 percent per annum and is payable in arrears each June 2nd and
December 2nd.
Additionally, both the accrued interest and deferred interest on the $10,000,000
Loan previously owed the County was retroactively recalculated from the Loan
origination date at a rate of approximately 5 percent compared to 7.7654 percent
per the original Agreement. The recalculated deferred interest was $3,111,400. In
accordance with the MOU, the recalculated deferred interest does not accrue
additional interest. As of June 30, 2014, the balance of the deferred interest debt
has been completely repaid.
The California Department of Finance has approved the Tax Increment Bond and
Deferred Interest Payable as obligations of the Successor Agency.
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
2015 155,000 236,625 391,625
2016 180,000 228,250 408,250
2017 200,000 218,750 418,750
2018 230,000 208,000 438,000
2019 255,000 195,875 450,875
2020-2024 1,730,000 748,250 2,478,250
2025-2028 2,060,000 216,750 2,276,750
Totals $4,810,000 $ 2,052,500 $ 6,862,500
68
SUPPLEMENTARY INFORMATION
69
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND
For the year ended June 30, 2014
REVENUES:
Revenue from other agencies
Use of money and property
Other revenues
TOTAL REVENUES
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ $ 4,501,627 $ 1,691,697 $ (2,809,930)
20,400 20,400 25,415 5,015
1,200,000 1,200,000 - (1,200,000)
1,220,400 5,722,027
1,717,112 (4,004,915)
EXPENDITURES:
Capital Outlay
Infrastructure administration 1,420,000 1,304,500 77,308 1,227,192
Street improvements 2,756,700 2,178,327 2,127,240 51,087
Parks/trails/open space improvements 1,003,000 1,896,711 1,875,455 21,256
Sewer improvements 1,852,275 7,332 7,332
Building improvements 598,000 25,692 25,692
Storm water quality improvements 400,000 - -
TOTAL EXPENDITURES 8,029,975 5,412,562 4,113,027 1,299,535
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (6,809,575) 309,465 (2,395,915) (2,705,380)
OTHER FINANCING SOURCES (USES):
Transfers in 6,942,700 12,374,751 8,841,552 (3,533,199)
NET CHANGE IN FUND BALANCE 133,125 12,684,216 6,445,637 (6,238,579)
FUND BALANCE - BEGINNING OF YEAR 11,565,617 11,565,617 11,565,617
FUND BALANCE - END OF YEAR $ 11,698,742 $ 24,249,833 $ 18,011,254 $ (6,238,579)
70
CITY OF RANCHO PALOS VERDES
JUNE 30, 2014
NONMAJOR GOVERNMENTAL FUNDS
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.
1972 Act Landscaping and Lightinq 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 Lightinq District (1911 Act) — to account for revenue and costs associated
with a lighting district transferred to the "city -side" landscape and lighting district
from the County in 1995.
Beautification — to account for monies received for the City's recycling program
used for community improvement, grants and promotion of recycling.
Waste Reduction — to account for AB939 fees received for state mandated waste
reduction and recycling plans and programs.
Air Quality Management — to account for AB2766 fees received to fund programs
to reduce air pollution from motor vehicles.
Proposition C — to account for sales taxes received from the County and used to
support public transit and related services.
Proposition A — to account for the City share of an additional one-half percent sales
tax designated to fund certain public transportation orientated 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 for the voter approved 1992 and 1996 Measure A funds
and other state and county grants used for the acquisition of open space and park
improvements.
71
CITY OF RANCHO PALOS VERDES
JUNE 30, 2014
NONMAJOR GOVERNMENTAL FUNDS
Abalone Cove Sewer Assessment District — to account for property assessments
used to partially pay for operation and maintenance of the Abalone Cove sewer
system.
Dr. Allen and Charlotte Ginsburg Cultural Arts Building — to account for a private
donation to be used for either construction of a building at the Upper Point Vicente
Civic Center to be used for dancing and other cultural activities, or for the purchase
of open space within the City for habitat conservation and passive recreational
purposes.
Donor Restricted Contributions — to account for donations received to construct or
acquire recreational facilities within the City.
Joint Powers Improvement Authority - Portuguese Bend — to account for
maintenance and repairs of landslide abatement improvements in the Portuguese
Bend Project area.
Community Development Block Grant — to account for federal grants received from
the Department of Housing and Urban Development.
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 Proiects 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 & 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).
72
CITY OF RANCHO PALOS VERDES
JUNE 30, 2014
NONMAJOR GOVERNMENTAL FUNDS
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.
Subregion One Maintenance — to account for monies used to maintain public
improvements and habitat areas dedicated to the City upon completion of the
Subregion One residential development project also known as Oceanfront Estates.
As part of the development agreement, the City received a $750,000 non -
expendable deposit. The interest earnings contribute to the maintenance of the
public open space.
Joint Powers Improvement Authority - Abalone Cove — to account for monies
received as part of a July 1991 Reimbursement and Settlement Agreement with
the County of Los Angeles. As a part of this Agreement, the Authority received a
$1,000,000 non -expendable deposit. The interest earnings are used to pay for
maintenance and repair of Abalone Cove landslide abatement improvements.
73
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2014
1972 Act
ASSETS
El Prado 1911 Act
Cash and investments $ 64,848 $ 21,125 $ 1,829,975
Receivables:
Taxes 3,512 46 11,737
Interest 103 9 860
Notes - -
Due from other government agencies - -
Other - -
Prepaid items - -
TOTAL ASSETS
LIABILITIES
Accounts payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Non -Spendable:
Endowment principal
Reimbursement settlement agreement
68,463
21,180 $ 1,842,572
5,800 $ - $ 85,913
5,800 - 85,913
Habitat restoration - -
Restricted 62,663 21,180
Committed - -
Assigned
Unassigned
1,756,659
TOTAL FUND BALANCES 62,663 21,180 1,756,659
TOTAL LIABILITIES, DEFERRED INFLOWS AND
FUND BALANCES $ 68,463 $ 21,180 $ 1,842,572
74
Beautification
793,467
Waste Air Quality
Reduction Management Proposition C
416,934 $ 86,243 $ 1,316,839
454 206 34 954
13,567
63,475
793,921 $ 480,615
43,619
43,619
39,198
39,198
397,798
793,921
99,844 $ 1,317,793
13,567
13,567
86,277 1,317,793
793,921 397,798 86,277 1,317,793
793,921 $ 480,615 $ 99,844 $ 1,317,793
75
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2014
ASSETS
Cash and investments
Receivables:
Taxes
Interest
Notes
Other
Prepaid items
TOTAL ASSETS
LIABILITIES
Accounts payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Non -Spendable:
Endowment principal
Reimbursement settlement agreement
Proposition A
441,352
173
Public
Safety
Grants Measure R
20,515 $ 1,249,719
441,525
55 538
20,570 $ 1,250,257
Habitat restoration - -
Restricted 441,525 20,570
Committed - -
Assigned
Unassigned
1,250,257
TOTAL FUND BALANCES 441,525 20,570 1,250,257
TOTAL LIABILITIES, DEFERRED INFLOWS AND
FUND BALANCES $ 441,525 $ 20,570 $ 1,250,257
76
Measure A
Dr. Allen and
Abalone Charlotte
Cove Ginsburg Donor
Sewer Cultural Arts Restricted
District Building Contributions
- $ 76,722 $ 119,107 $ 865,623
807
36 54 391
193,049
193,049 $ 77,565
19,330
47,633
119,161 $ 866,014
333
47,633 19,330 333
193,049
193,049
(47,633)
(47,633)
- 119,161 865,681
58,235
58,235
193,049 $ 77,565
119,161 865,681
119,161 $ 866,014
77
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2014
Joint Powers
Improvement
Authority Community
Portuguese Development
Bend Block Grant Quimby
ASSETS
Cash and investments $ 372,615 $ - $ 57,834
Receivables:
Taxes - -
Interest - - 27
Notes - -
- 68,671
Other - -
Prepaid items
TOTAL ASSETS $ 372,615
LIABILITIES
Accounts payable $ 10,159 $ 40,241
Due to other funds - 28,430
TOTAL LIABILITIES 10,159 68,671
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 68,671
TOTAL DEFERRED INFLOWS OF RESOURCES - 68,671
FUND BALANCES
68,671 $ 57,861
Non -Spendable:
Endowment principal
Reimbursement settlement agreement
Habitat restoration -
Restricted 362,456 - 57,861
Committed -
Assigned
Unassigned - (68,671)
TOTAL FUND BALANCES 362,456 (68,671) 57,861
TOTAL LIABILITIES, DEFERRED INFLOWS AND
FUND BALANCES
78
372,615 $ 68,671 $ 57,861
Total
Special Low -Moderate
Environmental Revenue Income
Excise Tax Bikeways Funds Housing
412,997 $ 34 $ 8,145,949 $ 23,513
- - 16,102
187 38 4,119 7
- - 275,287
- - 63,475
413,184 $ 72 $ 8,504,932 $ 23,520
- $ - $ 205,395
- - 76,063
- - 281,458
- - 314,485
- - 314,485
413,184 72 7,173,137
- - 58,235
- - 793,921 23,520
- - (116,304)
413,184 72 7,908,989 23,520
413,184 $ 72 $ 8,504,932 $ 23,520
79
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2014
ASSETS
Cash and investments
Receivables:
Taxes
Interest
Notes
Other
Prepaid items
TOTAL ASSETS
LIABILITIES
Accounts payable
Due to other funds
Total
Affordable Capital
Housing Projects Habitat
In -Lieu Funds Restoration
499,702
523,215 $ 1,457,494
226 233 495
499,928
523,448 $ 1,457,989
$ 14,528
TOTAL LIABILITIES - - 14,528
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Non -Spendable:
Endowment principal - -
Reimbursement settlement agreement - -
Habitat restoration - - 95,194
Restricted - - 1,348,267
Committed - -
Assigned 499,928 523,448
Unassigned - -
TOTAL FUND BALANCES 499,928 523,448 1,443,461
TOTAL LIABILITIES, DEFERRED INFLOWS AND
FUND BALANCES $ 499,928 $ 523,448 $ 1,457,989
80
Joint Powers
Improvement Total
Subregion Authority Total Other
One Abalone Permanent Governmental
Maintenance Cove Funds Funds
825,591 $ 1,086,900 $ 3,369,985 $ 12,039,149
- - 16,102
374 1 870 5,222
- - 275,287
- - 63,475
825,965 $ 1,086,901 $ 3,370,855 $ 12,399,235
3,997 $ 5,353 $ 23,878 $ 229,273
- - 76,063
3,997 5,353 23,878 305,336
- - 314,485
- - 314,485
750,000 - 750,000 750,000
- 1,000,000 1,000,000 1,000,000
- - 95,194 95,194
71,968 81,548 1,501,783 8,674,920
- - 58,235
- - 1,317,369
- - (116,304)
821,968 1,081,548 3,346,977 11, 779,414
825,965 $ 1,086,901 $ 3,370,855 $ 12,399,235
CITY OF RANCHO PALOS VERDES
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2014
REVENUES:
Taxes
Revenue from other agencies
Charges for services
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Public Works
Community Development
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
1972 Act El Prado 1911 Act
$ 260,452 $ 2,167 $ 550,798
330 43 3,795
260,782 2,210 554,593
78,181 30 408,540
78,181 30 408,540
182,601 2,180 146,053
(190,000) (99,000)
TOTAL OTHER FINANCING SOURCES
USES (190,000) (99,000)
NET CHANGE IN FUND BALANCE (7,399) 2,180 47,053
FUND BALANCE - BEGINNING OF YEAR 70,062 19,000 1,709,606
FUND BALANCE - END OF YEAR $ 62,663 $ 21,180 $ 1,756,659
Beautification
Waste Air Quality
Reduction Management Proposition C
$ - $ - $
23,347 38,612 593,536
2,194 869 277 4,078
230,313
2,194 254,529
38,889 597,614
181,598 50,000
181,598 50,000
2,194 72,931
(11,111) 597,614
(211,404) (41,292) (54,910) (872,184)
(211,404) (41,292) (54,910) (872,184)
(209,210) 31,639 (66,021) (274,570)
1,003,131 366,159 152,298 1,592,363
$ 793,921 $ 397,798 $ 86,277 $ 1,317,793
CITY OF RANCHO PALOS VERDES
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2014
REVENUES:
Taxes
Revenue from other agencies
Charges for services
Use of money and property
Other revenues
Proposition A
714,750
Public
Safety
Grants
$ $
100,000
Measure R
442,452
737 170 2,156
TOTAL REVENUES 715,487 100,170 444,608
EXPENDITURES:
Public Works
Community Development
584,953
TOTAL EXPENDITURES 584,953
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 130,534
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
100,170 444,608
(100,000)
TOTAL OTHER FINANCING SOURCES
USES (100,000) -
NET CHANGE IN FUND BALANCE 130,534 170 444,608
FUND BALANCE - BEGINNING OF YEAR 310,991 20,400 805,649
FUND BALANCE - END OF YEAR $ 441,525 $ 20,570 $ 1,250,257
Measure A
Dr. Allen and
Abalone Charlotte
Cove Ginsburg Donor
Sewer Cultural Arts Restricted
District Building Contributions
$ - $ - $ - $
55,708
5 92 271 1,774
25,500
217,446 55,800 271 27,274
217,441
84,171 20,000 5,041
- 84,171 20,000 5,041
217,446 (28,371) (19,729) 22,233
50,700
(67,441)
(67,441) 50,700 -
150,005 22,329 (19,729) 22,233
(197,638) 35,906 138,890 843,448
$ (47,633) $ 58,235 $ 119,161 $ 865,681
85
CITY OF RANCHO PALOS VERDES
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2014
REVENUES:
Taxes
Revenue from other agencies
Charges for services
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Public Works
Community Development
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Joint Powers
Improvement
Authority Community
Portuguese Development
Bend Block Grant
$ $
60,299
Quimby
81
57,275
60,299 57,356
73,556 128,970 29,000
73,556 128,970 29,000
(73,556) (68,671) 28,356
70,000
TOTAL OTHER FINANCING SOURCES
USES 70,000 -
NET CHANGE IN FUND BALANCE (3,556) (68,671) 28,356
FUND BALANCE - BEGINNING OF YEAR 366,012 29,505
FUND BALANCE - END OF YEAR $ 362,456 $ (68,671) $ 57,861
$
Environmental
Excise Tax
929
14,404
15,333
51,000
51,000
(35,667)
Bikeways
Total
Special Low -Moderate
Revenue Income
Funds Housing
$ - $ 813,417 $
34,133 2,224,570
55,708
142 17,943
327,492
34,275 3,439,130
1,695,040
- 1,695,040
34,275 1,744,090
120,700
(95,257) (1,731,488)
14
11,095
11,109
11,109
- (95,257) (1,610,788)
(35,667) (60,982) 133,302 11,109
448,851 61,054 7,775,687 12,411
$ 413,184 $ 72 $ 7,908,989 $ 23,520
87
CITY OF RANCHO PALOS VERDES
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2014
Total
Affordable Capital
Housing Projects Habitat
In -Lieu Funds Restoration
REVENUES:
Taxes $ $ $
Revenue from other agencies 10
Charges for services
Use of money and property 1,064 1,078 820
Other revenues 2,774 13,869 1,211,610
TOTAL REVENUES 3,838 14,947 1,212,440
EXPENDITURES:
Public Works 133,620
Community Development 6,098 6,098
TOTAL EXPENDITURES 6,098 6,098 133,620
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,260) 8,849 1,078,820
OTHER FINANCING SOURCES (USES):
Transfers in 150,000
Transfers out
TOTAL OTHER FINANCING SOURCES
USES 150,000
NET CHANGE IN FUND BALANCE (2,260) 8,849 1,228,820
FUND BALANCE - BEGINNING OF YEAR 502,188 514,599 214,641
FUND BALANCE - END OF YEAR $ 499,928 $ 523,448 $ 1,443,461
Joint Powers
Improvement Total
Subregion Authority Total Other
One Abalone Permanent Governmental
Maintenance Cove Funds Funds
$ - $ - $ - $ 813,417
10 2,224,580
- 55,708
1,695 4 2,519 21,540
1,211,610 1,552,971
1,695 4 1,214,139 4,668,216
32,428 46,999 213,047 1,908,087
- 6,098
32,428 46,999 213,047 1,914,185
(30,733) (46,995) 1,001,092 2,754,031
61,000 20,000 231,000 351,700
- (1,731,488)
61,000 20,000 231,000 (1,379,788)
30,267 (26,995) 1,232,092 1,374,243
791,701 1,108, 543 2,114, 885 10,405,171
$ 821,968 $ 1,081,548 $ 3,346,977 $ 11,779,414
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
1972 ACT SPECIAL REVENUE FUND
For the year ended June 30, 2014
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Taxes $ 258,000 $ 258,000 $ 260,452 $ 2,452
Use of money and property 190 190 330 140
TOTAL REVENUES 258,190 258,190 260,782 2,592
EXPENDITURES:
Public Works 72,800 78,682 78,181 501
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 185,390 179,508 182,601 3,093
OTHER FINANCING SOURCES (USES):
Transfers out (190,000) (190,000) (190,000)
NET CHANGE IN FUND BALANCE (4,610) (10,492) (7,399) 3,093
FUND BALANCE - BEGINNING OF YEAR 70,062 70,062 70,062
FUND BALANCE - END OF YEAR $ 65,452 $ 59,570 $ 62,663 $ 3,093
90
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
EL PRADO SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes $ 1,900 $ 1,900 $ 2,167 $ 267
Use of money and property 50 50 43 (7)
TOTAL REVENUES 1,950 1,950 2,210 260
EXPENDITURES:
Public Works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
1,000 1,000 30 970
950 950 2,180 1,230
19,000 19,000 19,000
$ 19,950 $ 19,950 $ 21,180 $ 1,230
91
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
1911 ACT SPECIAL REVENUE FUND
For the year ended June 30, 2014
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Taxes $ 525,000 $ 525,000 $ 550,798 $ 25,798
Use of money and property 4,400 4,400 3,795 (605)
TOTAL REVENUES 529,400 529,400 554,593 25,193
EXPENDITURES:
Public Works 532,500 517,500 408,540 108,960
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (3,100) 11,900 146,053 134,153
OTHER FINANCING SOURCES (USES):
Transfers out (99,000) (99,000) (99,000)
NET CHANGE IN FUND BALANCE (102,100) (87,100) 47,053 134,153
FUND BALANCE - BEGINNING OF YEAR 1,709,606 1,709,606 1,709,606
FUND BALANCE - END OF YEAR $ 1,607,506 $ 1,622,506 $ 1,756,659 $ 134,153
92
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BEAUTIFICATION SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 1,530 $ 1,530 $ 2,194 $ 664
TOTAL REVENUES 1,530 1,530 2,194 664
OTHER FINANCING SOURCES (USES):
Transfers out (214,000) (687,690) (211,404) 476,286
NET CHANGE IN FUND BALANCE (212,470) (686,160) (209,210) 476,950
FUND BALANCE - BEGINNING OF YEAR 1,003,131 1,003,131 1,003,131
FUND BALANCE - END OF YEAR $ 790,661 $ 316,971 $ 793,921 $ 476,950
93
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
WASTE REDUCTION SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies $ 24,000 $ 24,000 $ 23,347 $ (653)
Use of money and property 720 720 869 149
Other revenues 206,000 267,710 230,313 (37,397)
TOTAL REVENUES 230,720 292,430 254,529 (37,901)
EXPENDITURES:
Public Works 169,100 208,298 181,598 26,700
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 61,620 84,132 72,931 (11,201)
OTHER FINANCING SOURCES (USES):
Transfers out (62,000) (63,292) (41,292) 22,000
NET CHANGE IN FUND BALANCE (380) 20,840 31,639 10,799
FUND BALANCE - BEGINNING OF YEAR 366,159 366,159 366,159
FUND BALANCE - END OF YEAR $ 365,779 $ 386,999 $ 397,798 $ 10,799
94
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AIR QUALITY MANAGEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies $ 50,000 $ 50,000 $ 38,612 $ (11,388)
Use of money and property 270 270 277 7
TOTAL REVENUES 50,270 50,270 38,889 (11,381)
EXPENDITURES:
Public Works 50,000 50,000 50,000
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER)EXPENDITURES 270 270 (11,111) (11,381)
OTHER FINANCING SOURCES (USES):
Transfers out (54,910) (54,910)
NET CHANGE IN FUND BALANCE 270 (54,640) (66,021) (11,381)
FUND BALANCE - BEGINNING OF YEAR 152,298 152,298 152,298
FUND BALANCE - END OF YEAR $ 152,568 $ 97,658 $ 86,277 $ (11,381)
95
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PROPOSITION C SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies $ 591,517 $ 591,517 $ 593,536 $ 2,019
Use of money and property 100 100 4,078 3,978
TOTAL REVENUES 591,617 591,617 597,614 5,997
OTHER FINANCING SOURCES (USES):
Transfers out (592,000) (1,898,927) (872,184) 1,026,743
NET CHANGE IN FUND BALANCE (383) (1,307,310) (274,570) 1,032,740
FUND BALANCE - BEGINNING OF YEAR 1,592,363 1,592,363 1,592,363
FUND BALANCE - END OF YEAR $ 1,591,980 $ 285,053 $ 1,317,793 $ 1,032,740
96
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PROPOSITION A SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies $ 713,123 $ 713,123 $ 714,750 $ 1,627
Use of money and property 590 590 737 147
TOTAL REVENUES 713,713 713,713 715,487 1,774
EXPENDITURES:
Public Works 578,340 593,424 584,953 8,471
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 135,373 120,289 130,534 10,245
OTHER FINANCING SOURCES (USES):
Transfers out (412,000) - 412,000
NET CHANGE IN FUND BALANCE 135,373 (291,711) 130,534 422,245
FUND BALANCE - BEGINNING OF YEAR 310,991 310,991 310,991
FUND BALANCE - END OF YEAR $ 446,364 $ 19,280 $ 441,525 $ 422,245
97
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PUBLIC SAFETY GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies $ 100,000 $ 100,000 $ 100,000 $
Use of money and property - 170 170
TOTAL REVENUES 100,000 100,000 100,170 170
OTHER FINANCING SOURCES (USES):
Transfers out (100,000) (100,000) (100,000)
NET CHANGE IN FUND BALANCE - 170 170
FUND BALANCE - BEGINNING OF YEAR 20,400 20,400 20,400
FUND BALANCE - END OF YEAR $ 20,400 $ 20,400 $ 20,570 $ 170
98
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE R SPECIAL REVENUE FUND
For the year ended June 30, 2014
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Revenue from other agencies $ 443,637 $ 443,637 $ 442,452 $ (1,185)
Use of money and property 580 580 2,156 1,576
TOTAL REVENUES
444,217 444,217
444,608 391
OTHER FINANCING SOURCES (USES):
Transfers out (605,000) - 605,000
NET CHANGE IN FUND BALANCE 444,217 (160,783) 444,608 605,391
FUND BALANCE - BEGINNING OF YEAR 805,649 805,649 805,649
FUND BALANCE - END OF YEAR $ 1,249,866 $ 644,866 $ 1,250,257 $ 605,391
99
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE A SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies $ 170,516 $ 170,516 $ 217,441 $ 46,925
Use of money and property - 5 5
TOTAL REVENUES 170,516 170,516 217,446 46,930
OTHER FINANCING SOURCES (USES):
Transfers out (105,000) (105,000) (67,441) 37,559
NET CHANGE IN FUND BALANCE 65,516 65,516 150,005 84,489
FUND BALANCE - BEGINNING OF YEAR (197,638) (197,638) (197,638)
FUND BALANCE - END OF YEAR $ (132,122) $ (132,122) $ (47,633) $ 84,489
100
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ABALONE COVE SEWER ASSESSMENT DISTRICT SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Charges for services $ 54,000 $ 54,000 $ 55,708 $ 1,708
Use of money and property 80 80 92 12
TOTAL REVENUES 54,080 54,080 55,800 1,720
EXPENDITURES:
Public Works 105,600 105,600 84,171 21,429
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (51,520) (51,520) (28,371) 23,149
OTHER FINANCING SOURCES (USES):
Transfers in 50,700 50,700 50,700
NET CHANGE IN FUND BALANCE (820) (820) 22,329 23,149
FUND BALANCE - BEGINNING OF YEAR 35,906 35,906 35,906
FUND BALANCE - END OF YEAR $ 35,086 $ 35,086 $ 58,235 $ 23,149
101
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DR. ALLEN AND CHARLOTTE GINSBURG CULTURAL ARTS BUILDING SPECIAL REVENUE FUND
For the year ended June 30, 2014
REVENUES:
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Public Works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 480 $ 480 $ 271 $ (209)
480 480 271 (209)
20,000 20,000
480 (19,520) (19,729) (209)
138,890 138,890 138,890
$ 139,370 $ 119,370 $ 119,161 $ (209)
102
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DONOR RESTRICTED CONTRIBUTIONS SPECIAL REVENUE FUND
For the year ended June 30, 2014
REVENUES:
Use of money and property
Other revenue
TOTAL REVENUES
EXPENDITURES:
Public Works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
1,220 1,220 1,774 554
- 25,500 25,500
1,220 1,220 27,274 26,054
5,042 5,041 1
1,220 (3,822) 22,233 26,055
843,448 843,448 843,448
$ 844,668 $ 839,626 $ 865,681 $ 26,055
103
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND SPECIAL REVENUE FUND
For the year ended June 30, 2014
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Use of money and property $ 820 $ 820 $ - $ (820)
EXPENDITURES:
Public Works 119,100 119,100 73,556 45,544
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (118,280) (118,280) (73,556) 45,544
OTHER FINANCING SOURCES (USES):
Transfers in 70,000 70,000 70,000
NET CHANGE IN FUND BALANCE (48,280) (48,280) (3,556) 45,544
FUND BALANCE - BEGINNING OF YEAR 366,012 366,012 366,012
FUND BALANCE - END OF YEAR $ 317,732 $ 317,732 $ 362,456 $ 45,544
104
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
For the year ended June 30, 2014
REVENUES:
Revenue from other agencies
Budgeted Amounts
Original Final Actual
$ 146,918 $ 146,918 $ 60,299
146,918 143,513 128,970
EXPENDITURES:
Public Works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR $
105
3,405
$ 3,405
Variance with
Final Budget
Positive
(Negative)
$ (86,619)
14,543
(68,671) (72,076)
$ (68,671) $ (72,076)
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
QUIMBY ACT SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property - 81 81
Other revenues 1,400,000 1,400,000 57,275 (1,342,725)
TOTAL REVENUES 1,400,000 1,400,000 57,356 (1,342,644)
EXPENDITURES:
Public Works 29,000 29,000
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,400,000 1,371,000 28,356 (1,342,644)
OTHER FINANCING SOURCES (USES):
Transfers out (993,000) (993,000) - 993,000
NET CHANGE IN FUND BALANCE 407,000 378,000 28,356 (349,644)
FUND BALANCE - BEGINNING OF YEAR 29,505 29,505 29,505
FUND BALANCE - END OF YEAR $ 436,505 $ 407,505 $ 57,861 $ (349,644)
106
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 910 910 929 19
Other revenues 240,760 240,760 14,404 (226,356)
TOTAL REVENUES 241,670 241,670 15,333 (226,337)
EXPENDITURES:
Public Works 51,000 51,000
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 241,670 190,670 (35,667) (226,337)
OTHER FINANCING SOURCES (USES):
Transfers out (300,000) (350,000) - 350,000
NET CHANGE IN FUND BALANCE (58,330) (159,330) (35,667) 123,663
FUND BALANCE - BEGINNING OF YEAR 448,851 448,851 448,851
FUND BALANCE - END OF YEAR $ 390,521 $ 289,521 $ 413,184 $ 123,663
107
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BIKEWAYS SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies $ 26,586 $ 26,586 $ 34,133 $ 7,547
Use of money and property - 142 142
TOTAL REVENUES 26,586 26,586 34,275 7,689
OTHER FINANCING SOURCES (USES):
Transfers out (26,586) (95,257) (95,257)
NET CHANGE IN FUND BALANCE (68,671) (60,982) 7,689
FUND BALANCE - BEGINNING OF YEAR 61,054 61,054 61,054
FUND BALANCE - END OF YEAR $ 61,054 $ (7,617) $ 72 $ 7,689
108
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOW -MODERATE INCOME HOUSING CAPITAL PROJECTS FUND
For the year ended June 30, 2014
REVENUES:
Use of money and property
Other revenues
TOTAL REVENUES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
- 14 14
- 11,095 11,095
- 11,109 11,109
- 11,109 11,109
12,411 12,411 12,411
$ 12,411 $ 12,411 $ 23,520 $ 11,109
109
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AFFORDABLE HOUSING IN -LIEU CAPITAL PROJECTS FUND
For the year ended June 30, 2014
REVENUES:
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Community development
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
1,510 1,510 1,064 (446)
- 2,774 2,774
1,510 1,510 3,838 2,328
3,800 6,098 6,098
(2,290) (4,588) (2,260) 2,328
502,188 502,188 502,188
$ 499,898 $ 497,600 $ 499,928 $ 2,328
110
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HABITAT RESTORATION PERMANENT FUND
For the year ended June 30, 2014
REVENUES:
Revenue from other agencies
Use of money and property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Public Works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ $ - $ 10 $ 10
540 540 820 280
- 1,211,610
540 540 1,212,440
158,620 158,620 133,620
(158,080) (158,080) 1,078,820
150,000 150,000 150,000
290
25,000
25,290
NET CHANGE IN FUND BALANCE (8,080) (8,080) 1,228,820 25,290
FUND BALANCE - BEGINNING OF YEAR 214,641 214,641 214,641
FUND BALANCE - END OF YEAR $ 206,561 $ 206,561 $ 1,443,461 $ 25,290
111
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
SUBREGION ONE MAINTENANCE PERMANENT FUND
For the year ended June 30, 2014
REVENUES:
Use of money and property
EXPENDITURES:
Public Works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 2,300 $ 2,300 $ 1,695 $ (605)
71,000 71,000 32,428 38,572
(68,700) (68,700) (30,733) (39,177)
61,000 61,000 61,000
(7,700) (7,700) 30,267 (39,177)
791,701 791,701 791,701
$ 784,001 $ 784,001 $ 821,968 $ (39,177)
112
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY ABALONE COVE PERMANENT FUND
For the year ended June 30, 2014
REVENUES:
Use of money and property
EXPENDITURES:
Public Works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
$ 3,300 $ 3,300 $ 4 $ (3,296)
53,300 71,935
(50,000) (68,635)
46,999 24,936
(46,995) (28,232)
OTHER FINANCING SOURCES (USES):
Transfers in 20,000 20,000 20,000
NET CHANGE IN FUND BALANCE (30,000) (48,635) (26,995) (28,232)
FUND BALANCE - BEGINNING OF YEAR 1,108,543 1,108,543 1,108,543
FUND BALANCE - END OF YEAR $ 1,078,543 $ 1,059,908 $ 1,081,548 $ (28,232)
113
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114
CITY OF RANCHO PALOS VERDES
JUNE 30, 2014
INTERNAL SERVICE FUND DESCRIPTIONS
The Internal Service Funds are used to finance and account for goods and services
provided by one City department to other City departments on a cost -
reimbursement basis, including depreciation.
Equipment Replacement — to account for purchases, replacement and
maintenance of certain equipment items on behalf of all City departments.
Building Replacement — to account for the accumulation of funds transferred from
the General Fund for replacement of certain buildings on behalf of the City.
Employee Benefits — to account for employee benefit costs for all employees
charged to various City departments.
115
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
June 30, 2014
Equipment Employee Building
Replacement Benefits Replacement Totals
ASSETS
CURRENT ASSETS:
Cash and investments $ 2,965,915 $ 53,550 $ 942,184 $ 3,961,649
Receivables:
Interest 1,365 - 425 1,790
Other 801 2,686 - 3,487
Prepaid items 15,767 100,343 - 116,110
TOTAL CURRENT ASSETS 2,983,848 156,579 942,609 4,083,036
NONCURRENT ASSETS:
Capital assets
Property and equipment
Accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities
TOTAL LIABILITIES
NET POSITION
Net investment in capital assets
Unrestricted
1,376,156
(1,163,969)
- - 1,376,156
- - (1,163,969)
212,187 - - 212,187
$ 3,196,035 $ 156,579 $ 942,609 $ 4,295,223
67,950 7,232 - 75,182
67,950 7,232 - 75,182
212,187 - - 212,187
2,915,898 149,347 942,609 4,007,854
TOTAL NET POSITION $ 3,128,085 $ 149,347 $ 942,609 $ 4,220,041
116
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the year ended June 30, 2014
OPERATING REVENUES:
Charges for services
OPERATING EXPENSES:
Personnel services
Materials and supplies
Maintenance
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES:
Other revenues
Investment income
TOTAL NON-OPERATING REVENUES
INCOME (LOSS) BEFORE TRANSFERS
TRANSFER IN (OUT)
CHANGE IN NET POSITION
NET POSITION - BEGINNING OF YEAR
NET POSITION - END OF YEAR
Equipment
Replacement
$ 731,300
164,474
229,716
121,825
516,015
215,285
14,655
5,712
20,367
235,652
54,910
290,562
2,837,523
$ 3,128,085
117
Employee
Benefits
$ 1,993,425 $
1,955,449
1,955,449
37,976
37,976
37,976
111,371
$ 149,347
Building
Replacement
2,004
2,004
2,004
2,004
940,605
$ 942,609
Totals
$ 2,724,725
1,955,449
164,474
229,716
121,825
2,471,464
253,261
14,655
7,716
22,371
275,632
54,910
330,542
3,889,499
$ 4,220,041
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2014
Equipment Employee Building
Replacement Benefits Replacement Totals
CASH FLOWS FROM OPERATING
ACTIVITIES:
Receipts fom interfund services provided $ 731,300 $ 1,993,425 $ - $ 2,724,725
Payments to suppliers (337,866) - (4,678) (342,544)
Payments to employees - (1,954,810) - (1,954,810)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
393,434 38,615 (4,678) 427,371
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital
assets (69,682) (69,682)
Transfer from other funds 54,910 54,910
NET CASH FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
(14,772) - - (14,772)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Interest received on investments 5,872 58 2,109 8,039
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 369,762 38,673 (2,569) 405,866
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 2,581,381 14,877 944,753 3,541,011
CASH AND CASH EQUIVALENTS -
END OF YEAR $ 2,951,143 $ 53,550 $ 942,184 $ 3,946,877
RECONCILIATION OF OPERATING LOSS
TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Operating income (loss) $ 215,285 $ 37,976 $ - $ 253,261
Adjustments to reconcile operating
income (loss) to net cash used by
operating activities:
Depreciation 121,825 - - 121,825
Changes in operating assets and
liabilities:
Decrease (increase) in other (801) 1,204 403
receivables
Decrease (increase) in prepaid items 37,790 54,176 - 91,966
Increase (decrease) in accrued
liabilities 19,335 (54,741) (4,678) (40,084)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$ 393,434 $ 38,615 $ (4,678) $ 427,371
118
STATISTICAL SECTION
119
STATISTICAL SECTION
This part of the City of Rancho Palos Verdes' comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the city's
overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand
how the City's financial performance and well-being have changed over
time.
Revenue Capacity
These schedules contain information to help the reader assess the City's
most significant local revenue source, property tax.
Debt Capacity
These schedules present information to help the reader assess the
affordability of the City's current levels of outstanding debt and the city's
ability to issue additional debt in the future. The City does not have general
bond indebtedness or debt issued with pledged revenue.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City's financial
activities take place.
Operating Information
These schedules contain services and infrastructure data to help the reader
understand how the information in the City's financial report relates to the
services the City provides and the activities it performs.
121
128
133
135
138
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
120
City of Rancho Palos Verdes
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmental activities
Net investment in capital assets $ 94,023 $ 109,991 $ 109,746 $ 109,376 $ 107,867 $ 115,331 $ 115,145 $ 114,488 $ 113,284 $ 114,427
Restricted 12,075 12,417 12,163 1,000 1,000 1,000 1,750 1,750 1,835 11,792
Unrestricted 15,659 16,024 17,823 30,471 31,277 31,855 39,066 67,112 46,687 46,679
Total governmental activities net position $ 121,757 $ 138,432 $ 139,732 $ 140,847 $ 140,144 $ 148,186 $ 155,961 $ 183,351 $ 161,806 $ 172,898
Business -type activities
Net investment in capital assets $ - $ 1,311 $ 2,158 $ 5,599 $ 12,477 $ 12,458 $ 12,753 $ 13,356 $ 18,319 $ 29,557
Restricted - - - - - - -
Unrestricted 2,000 2,799 5,258 7,740 2,108 2,825 3,365 3,532 9,727 5,317
Total business -type activities net position $ 2,000 $ 4,110 $ 7,416 $ 13,339 $ 14,585 $ 15,283 $ 16,118 $ 16,888 $ 28,046 $ 34,874
Primary government
Net investment in capital assets $ 94,023 $ 111,302 $ 111,904 $ 114,975 $ 120,344 $ 127,789 $ 127,898 $ 127,845 $ 131,603 $ 143,984
Restricted 12,075 12,417 12,163 1,000 1,000 1,000 1,750 1,750 1,835 11,792
Unrestricted 17,659 18,823 23,081 38,211 33,385 34,680 42,431 70,644 56,414 51,996
Total primary government net position $ 123,757 $ 142,542 $ 147,148 $ 154,186 $ 154,729 $ 163,469 $ 172,079 $ 200,238 $ 189,852 $ 207,772
121
City of Rancho Palos Verdes
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Expenses
Governmental activities:
Administration $ 4,055 $ 4,350 $ 4,953 $ 4,724 $ 6,357 $ 7,824 $ 5,997 $ 5,906 $ 5,534 $ 7,530
Public safety 3,079 3,437 3,751 4,044 4,233 4,242 4,335 4,178 4,348 4,429
Public works 9,488 9,290 9,969 9,026 10,555 13,633 10,389 11,202 10,874 9,377
Community development 2,223 2,060 2,631 2,441 2,697 2,550 2,622 2,432 2,526 1,927
Parks and recreation 1,065 1,659 1,439 1,396 1,605 1,826 1,391 1,490 1,696 1,369
Non -departmental - - - - - 320 - - - 35
Interest on long-term debt 272 270 271 270 268 265 260 109 -
Total governmental activities expenses 20,182 21,066 23,014 21,901 25,715 30,660 24,994 25,318 24,978 24,667
Business -type activities:
Water Quality Flood Protection - 47 271 301 437 580 489 560 594 659
Total primary government expenses $ 20,182 $ 21,113 $ 23,285 $ 22,202 $ 26,152 $ 31,240 $ 25,483 $ 25,878 $ 25,572 $ 25,326
Program Revenues
Governmental activities:
Charges for services:
Administration $ 62 $ 35 $ 29 $ 538 $ 555 $ 681 $ 654 $ 747 $ 779 $ 120
Public safety 163 224 332 316 267 229 261 194 150 42
Public works 131 37 185 1,002 422 1,356 622 684 543 169
Community development 1,188 1,319 1,599 1,760 1,643 1,764 1,714 1,644 1,854 1,772
Parks and recreation 41 45 51 483 483 896 457 503 476 18
Operating grants and contributions 2,728 3,894 4,200 3,570 2,963 6,633 3,689 3,628 4,133 2,506
Capital grants and contributions 4,524 17,299 317 1,472 642 7,179 5 139 139 2,912
Total governmental activities program revenues 8,837 22,853 6,713 9,141 6,975 18,738 7,402 7,538 8,074 7,539
Business -type activities:
Charges for services:
Water Quality Flood Protection 1,188 1,222 1,578 1,264 1,312 1,319 1,313 1,361
Operating grants and contributions - - - 2,137 -
Capital grants and contributions - 6,115
Total business -type activities program revenues - - 1,188 1,222 1,578 1,264 1,312 1,319 3,450 7,476
Total primary government program revenues $ 8,837 $ 22,853 $ 7,901 $ 10,363 $ 8,553 $ 20,002 $ 8,714 $ 8,857 $ 11,524 $ 15,015
Net (expense)/revenue
Governmental activities $ (11,345) $ 1,787 $ (16,301) $ (12,760) $ (18,740) $ (11,922) $ (17,592) $ (17,780) $ (16,904) $ (17,128)
Business -type activities - (47) 917 921 1,141 684 823 759 2,856 6,817
Total primary government net expense $ (11,345) $ 1,740 $ (15,384) $ (11,839) $ (17,599) $ (11,238) $ (16,769) $ (17,022) $ (14,048) $ (10,311)
122
City of Rancho Palos Verdes
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes $ 5,840 $ 9,621 $ 10,235 $ 10,935 $ 11,462 $ 11,431 $ 11,854 $ 11,480 $ 11,284 $ 11,991
Transient occupancy tax 28 31 32 26 85 1,955 2,640 3,349 3,790 4,250
Sales taxes 1,276 1,214 1,381 1,056 1,053 1,246 1,548 1,449 1,588 1,642
Franchise taxes 1,307 1,454 1,512 1,599 1,709 1,711 1,825 1,881 1,907 1,998
Utility user taxes 1,901 2,191 2,271 2,329 2,267 2,395 2,407 2,333 2,481 2,510
Other taxes 4,545 727 331 794 605 712 814 674 778 1,589
Investment income 594 997 1,615 1,555 631 207 318 604 184 94
Other 1,255 762 2,101 300 225 307 271 52 929 4,146
Transfers (2,000) (2,109) (2,017) (4,719) (8,293) -
Extraordinary item 23,348 (19,289) -
Total governmental activities 14,746 14,888 17,461 13,875 18,037 19,964 21,677 45,170 (4,641) 28,220
Business -type activities:
Investment income - 48 51 283 105 14 13 11 10 11
User Fees - - - -
Other - - 320 - -
Transfers 2,000 2,109 2,017 4,719 8,293 -
Total business -type activities 2,000 2,157 2,388 5,002 105 14 13 11 8,303 11
Total primary government $ 16,746 $ 17,045 $ 19,849 $ 18,877 $ 18,142 $ 19,978 $ 21,690 $ 45,181 $ 3,662 $ 28,231
Change in Net Position
Governmental activities $ 3,401 $ 16,675 $ 1,160 $ 1,115 $ (703) $ 8,042 $ 4,085 $ 27,390 $ (21,545) $ 11,092
Business -type activities 2,000 2,110 3,305 5,923 1,246 698 836 770 11,159 6,828
Total primary government net expense $ 5,401 $ 18,785 $ 4,465 $ 7,038 $ 543 $ 8,740 $ 4,921 $ 28,159 $ (10,386) $ 17,920
123
City of Rancho Palos Verdes
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Transient Utility
Fiscal Property Occupancy Sales Franchise Users Other
Year Tax Tax Tax Tax Tax Taxes
2005 5,840 28 1,276 1,307 1,901 4,545
2006 9,621 1 31 1,214 1,454 2,191 727
2007 10,235 32 1,381 1,512 2,271 331
2008 10,935 26 1,056 1,599 2,329 794
2009 11,462 85 1,053 1,709 2,267 605
2010 11,431 1,955 1,246 1,711 2,395 712
2011 11,854 2,640 1,548 1,825 2,407 814
2012 11,480 3,349 1,449 1,881 2,333 674
2013 11,284 3,790 1,588 1,907 2,481 778
2014 11,991 4,250 1,642 1,998 2,510 1,589
1: Most of the Motor Vehicle In Lieu Tax is received as Property Tax beginning in 2006.
124
i
Total
14,897
15,238
15,762
16,739
17,181
19,450
21,088
21,166
21,828
23,980
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Seven Fiscal Years - Before GASB 54
(modified accrual basis of accounting)
(amounts expressed in thousands)
2004 2005 2006 2007 2008 2009 2010
General Fund
Reserved $ 6,639 $ 6,021 $ 6,165 $ 6,586 $ 6,645 $ 6,314 $ 7,166
Designated - 675 876 786 1,278 1,333 1,462
Unreserved, Undesignated 14,066 14,209 13,649 14,376 12,171 10,440 10,745
Total General Fund $ 20,705 $ 20,905 $ 20,690 $ 21,748 $ 20,094 $ 18,087 $ 19,373
All other Governmental Funds
Reserved $ 7,229 $ 3,147 $ 3,315 $ 2,396 $ 2,724 $ 3,672 $ 6,361
Designated
Special Revenue Funds - 615 744 1,849 1,896 411 85
Capital Projects Funds 2,416 2,799 3,158 4,347 6,442 7,494
Permanent Fund - - 75 65 - -
Debt Service Fund -
Unreserved, Undesignated, reported in:
Special Revenue Funds 5,040 5,902 6,615 6,426 7,494 7,910 6,058
Capital Projects Funds 2,430 3,320 2,077 1,869 1,908 3,373 1,240
Permanent Fund 418 426 329 325 371 362 333
Debt Service Fund (12,070) (12,793) (13,741) (14,873) (15,990) (16,823) (17,797)
Total all other Governmental Funds $ 3,047 $ 3,033 $ 2,213 $ 1,215 $ 2,750 $ 5,347 $ 3,774
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Three Fiscal Years - After GASB 54
(modified accrual basis of accounting)
(amounts expressed in thousands)
2012 2013 2014
General Fund
Non -Spendable $ 7,493 $ 138 $ 144
Restricted - -
Committed - -
Assigned - Unassigned 12,464 14,370 15,474
Total General Fund $ 19,957 $ 14,508 $ 15,618
All other Governmental Funds
Non -Spendable
Special Revenue Funds $ 3,066 $ - $ -
Debt Service Fund - - -
Capital Projects Funds - -
Permanent Fund 1,750 1,835 1,845
Restricted
Special Revenue Funds 8,187 7,849 8,445
Capital Projects Funds
Permanent Fund 226 280 1,502
Committed
Special Revenue Funds - 36 58
Capital Projects Funds - -
Permanent Fund - -
Assigned
Special Revenue Funds - - 794
Capital Projects Funds 15,407 13,084 18,535
Permanent Fund - Unassigned
Special Revenue Funds (108) (198) (116)
Debt Service Fund - -
Capital Projects Funds - -
Permanent Fund - -
Total all other Governmental Funds $ 28,528 $ 22,885 $ 31,063
126
City of Rancho Palos Verdes
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual basis of Accounting)
(Amounts expressed in thousands)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenues
Taxes $ 13,573 $ 15,238 $ 16,453 $ 17,062 $ 17,573 $ 19,844 $ 21,419 $ 21,867 $ 22,543 $ 23,981
Licenses and permits 1,326 1,440 1,763 1,914 1,755 1,954 1,933 1,806 2,027 1,951
Fines and forfeitures 108 171 237 260 214 179 210 159 117 128
Use of money and property 1,306 7,038 3,480 2,108 1,240 1,601 1,560 1,350 1,383 846
Charges for services 152 49 61 60 163 81 73 149 141 323
Donation - - - - 445
Revenues from other agencies 7,848 15,511 4,118 4,647 3,575 10,180 3,162 3,421 3,395 5,301
Other Revenues 1,038 155 201 1,563 467 4,806 229 259 741 3,068
Total Revenues 25,351 39,602 26,313 27,614 24,987 38,645 28,586 29,011 30,791 35,598
Expenditures
Administration 3,852 4,041 4,607 4,411 4,915 5,720 5,503 5,726 5,401 5,792
Public Safety 3,092 3,438 3,751 4,044 4,233 4,242 4,335 4,178 4,348 4,492
Public Works 6,302 5,277 6,864 5,768 7,075 6,896 7,875 7,616 7,240 7,611
Parks and Recreation 965 1,593 1,319 1,281 1,354 1,702 1,257 1,479 1,557 1,573
Community Development 2,302 2,361 2,681 2,496 2,723 2,604 2,784 2,484 2,591 2,640
Non -Departmental - - - - - 320 - - 35
Pass Through to other agencies 188 200 152 169 187 - - Capital Outlay 4,912 20,202 3,124 3,112 2,459 14,567 2,557 3,155 2,721 4,113
Debt Service
Principal 184 200 248 316 350 419 423 464
Interest 905 1,150 1,390 1,370 1,101 886 887 498 -
Total Expenditures 22,702 38,462 24,136 22,967 24,397 37,356 25,621 25,599 23,857 26,256
Excess of Revenues over (under) Expenditures 2,649 1,140 2,177 4,647 590 1,289 2,965 3,412 6,934 9,342
Other Financing Sources (uses)
Sales of capital assets - - - 350 - -
Transfers in 6,180 4,989 4,489 3,158 5,815 4,616 8,944 8,226 7,954 10,424
Transfers out (8,180) (7,247) (6,606) (7,924) (5,815) (6,192) (8,944) (7,856) (16,247) (10,479)
Bond Proceeds
Advances to the Redevelopment Agency - - - - - -
Total Other Financing Sources (uses) (2,000) (2,258) (2,117) (4,766) (1,576) 350 371 (8,293) (55)
Extraordinary Gain (Loss) 18,240 (6,743)
Net change in Fund Balances $ 649 $ (1,118) $ 60 $ (119) $ 590 $ (287) $ 3,315 $ 22,023 $ (8,102) $ 9,287
Cost of Assets Capitalized
Debt Services as a percentage of Non -Capital Expenditures
4,623 19,465 2,800 2,764 1,895 10,866 3,180 2,865 2,022 4,820
6.0% 7.1% 7.7% 8.3% 6.4% 4.9% 5.8% 4.2% 0.0% 0.0%
127
Fiscal Property
Year Tax
2005 8,494
2006 9,576
2007 10,385
2008 10,898
2009 11,462
2010 11,431
2011 11,854
2012 11,480
2013 11,284
2014 11,991
i
City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts expressed in thousands)
Transient Utility
Occupancy Sales Franchise Users Other
Tax Tax Tax Tax Taxes Total
28 1,009 1,307 1,901 834 13,573
31 995 1,299 2,191 1,146 15,238
32 1,020 1,511 2,272 1,233 16,453
26 1,077 1,599 2,329 1,133 17,062
85 1,060 1,709 2,267 990 17,573
1,955 1,158 1,711 2,395 1,194 19,844
2,640 1,518 1,825 2,407 1,175 21,419
3,349 1,452 1,881 2,333 1,372 21,867
3,790 1,589 1,907 2,481 1,492 22,543
4,250 1,642 1,998 2,510 1,590 23,981
Source: City General Ledger
1: Most of the Motor Vehicle In Lieu Fees are received as property tax beginning in 2006.
128
City of Rancho Palos Verdes
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
City Estimated Assessed
Fiscal Less Taxable Direct Actual Factor of Value as a
Year Residential Commercial Industrial Other Unsecured Tax -Exempt Assessed Tax Taxable Taxable Percentage of
End Property Property Property Property Property Property Value Rate (1) Value (2) Assessed Value (3) Actual Value
2005 * 6,530,448 76,445 1,691 317,463 22,222 218,193 6,730,076 0.063728 8,956,722 1.33085 75.14%
2006 * 7,034,406 88,691 3,086 365,175 21,561 218,916 7,294,003 0.063728 9,707,224 1.33085 75.14%
2007 7,548,956 111,338 3,148 513,876 20,378 226,598 7,971,098 0.063728 10,608,336 1.33085 75.14%
2008 7,919,953 170,149 3,211 453,446 26,546 151,225 8,422,080 0.063728 11,208,525 1.33085 75.14%
2009 8,235,780 270,956 3,275 491,235 46,858 154,969 8,893,135 0.063728 11,835,429 1.33085 75.14%
2010 8,333,042 263,157 3,341 598,539 49,628 236,925 9,010,782 0.063728 9,515,593 1.05602 94.69%
2011 8,362,052 396,195 3,333 570,551 45,258 158,388 9,219,001 0.063728 9,067,313 0.98355 101.67%
2012 8,596,777 390,497 3,358 564,763 70,284 157,307 9,468,372 0.063728 10,683,820 1.12837 88.62%
2013 8,843,139 402,533 3,425 581,160 48,147 174,167 9,704,237 0.063728 11,390,239 1.17374 85.20%
2014 9,190,789 475,510 3,493 660,569 46,962 153,434 10,223,889 0.063728 13,967,877 1.36620 73.20%
Source: 2010-2013 & 2006-07 County Assessor data, MuniServices, LLC
*Assessed values have been revised from prior CAFR publications to comply with GASB No. 44 standards and on-going consistency in reporting methodologies.
(1) Total Direct Tax Rate is represented by TRA 001-224. This percentage is City's shared portion within 1% of County's general levy.
(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.
Based on these calculations a factor was extrapolated and applied to current assessed values.
(3) The Factor used to calculate Estimated Actual Value was calculated for 2006-07 and applied to prior years for historical purposes.
129
City of Rancho Palos Verdes
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
CITY DIRECT RATE 0.063728 0.063728 0.063728 0.063728 0.063728 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 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 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 0.169715 0.169715 0.169715 0.169715 0.169715
LA CO. FIRE-FFW 0.006910 0.006910 0.006910 0.006910 0.006910 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 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 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 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 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 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 0.000181 0.000181 0.000181 0.000181 0.000181
ERAF 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
EDUCATIONAL AUG FD IMPOUND 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
COUNTY SCHOOL SERVICES 0.001369 0.001369 0.001369 0.001369 0.001369 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 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 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 0.000302 0.000302 0.000302 0.000302 0.000302
PALOS VERDES PENINSULA USD 0.196986 0.196986 0.196986 0.196986 0.196986 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 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 0.000876 0.000876 0.000876 0.000876 0.000876
TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000
Debt Service Rates
COUNTY - - 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
PALOS VERDES PEN USD - - 0.019760 0.020177 0.021642 0.022493 0.022511 0.024102 0.023109
COMMNTY COLLEGE - - 0.008794 0.022115 0.023112 0.040310 0.035296 0.048750 0.044541
PALOS VERDES LIB - - 0.006854 0.006801 0.006618 0.006719 0.006359 0.006441 0.006118
FLOOD CONTROL - - 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
METRO WATER DIST - - 0.004500 0.004300 0.004300 0.003700 0.003700 0.003500 0.003500
TOTAL - - 0.039908 0.053393 0.055672 0.073222 0.067866 0.082793 0.077268
TOTAL TAX RATE - - - 1.039908 1.053393 1.055672 1.073222 1.067866 1.082793 1.077268
130
City of Rancho Palos Verdes
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2013-14 2004-05
Percentage of Percentage of
Taxable Total City Taxable Taxable Total City Taxable
Taxpayer Value ($) Rank Value (%) Value ($) Rank Value (%)
Long Point Development LLC 455,289,981 1 4.45%
PPC Villas RPV LLC 66,678,945 2 0.65%
P V Victoria Apts LLC 57,091,188 3 0.56%
VHPS LLC 42,157,818 4 0.41%
Terraces Rancho Palos Verdes 36,843,964 5 0.36%
Western Riviera Investors 30,636,993 6 0.30%
Episcopal Communities Services 28,528,013 7 0.28%
Golden Cove LLC 28,448,065 8 0.28%
Belmont Village RPV LP 24,142,346 9 0.24%
BVF 11 Madison LLC 24,000,574 10 0.23%
Terranea Resort Spa 22,147,963 11 0.22%
Johnson Eric C 17,068,581 12 0.17%
Tridiamond LLC 13,953,581 13 0.14%
American Golf Inc. 12,257,000 14 0.12%
Briles Richard & Keanna 11,157,368 15 0.11%
Vanderlip Investment Co 10,614,455 16 0.10%
California Water Service Co 10,303,179 17 0.10%
First Citizens Bank Trust Co 8,843,400 18 0.09%
Palos Verdes Terrace LTD 7,971,684 19 0.08%
Bruning Fred W 7,573,500 20 0.07%
AA Homes LLC 7,571,600 21 0.07%
Amdan Investment LLC Lessee 7,466,650 22 0.07%
Wang Lisa 7,293,000 23 0.07%
Raleigh Group One LLC 6,398,214 24 0.06%
Labarba James G 6,380,873 25 0.06%
VRPV LLC Et Al 51,123,300 1 0.76%
VH Property Corp 50,001,800 2 0.74%
P V Victoria Apts LLC 49,456,185 3 0.73%
Western Riviera Investors 25,819,543 4 0.38%
Warmington Oceanfront Assoc 25,074,066 5 0.37%
York Long Point Assoc 22,869,857 6 0.34%
RPV Associates LLC 19,097,853 7 0.28%
Belmont Village RPV LP 14,119,345 8 0.21%
Top Terraces Inc. 12,929,855 9 0.19%
Gardner Theofore R 11 Tr 9,385,073 10 0.14%
Braun William 6,720,000 11 0.10%
Donahue Schriber Reality Group 6,174,788 12 0.09%
Labarba James G 5,526,527 13 0.08%
Kim Goon G 5,025,229 14 0.07%
Foster Robert D & Gina D 5,008,977 15 0.07%
Chung David W 4,921,182 16 0.07%
Briles Richard & Keanna 4,864,591 17 0.07%
Bradford Edward T & Paullee G 4,713,917 18 0.07%
Knollbrook LTD 4,670,833 19 0.07%
Ganezer Max & Florence 4,658,404 20 0.07%
Hoffman John C & Paula J 4,634,862 21 0.07%
Golden Cove LLC 4,499,320 22 0.07%
Moshfeghi Mehran 4,417,765 23 0.07%
Yeong Yae Kim 4,390,558 24 0.07%
McNair David R & Mata Atua 4,318,240 25 0.06%
Total Top 25 Taxpayers $ 950,818,935 9.30% $ 354,422,070 5.27%
Total Taxable Value $ 10,223,889,482 100.00%
Source: Los Angeles County Assessor data, MuniServices, LLC
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6,730,075,647 100.00%
Fiscal
Year
2006
2007
2008
2009
2010*
2011*
2012
2013
2014
Total Tax
Levy for
Fiscal Year
4,643
5,078
5,351
6,116
5,447
5,597
5,777
5,951
6,287
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Nine Fiscal Years
(amounts expressed in thousands)
Collected within the
Fiscal Year of the Levy
Percentage
Amount of Levy
4,506 97.06%
4,799 94.51%
5,316 99.35%
5,734 93.76%
4,917 90.27%
5,462 97.59%
5,656 97.91%
5,844 98.20%
6,193 98.50%
Source: County Assessor Data and City General Ledger
* Includes 1% secured apportionment only
Collections in
Subsequent Years
36
10
10
8
8
9
9
7
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and
is therefore unavailable.
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Total Collections to Date
Percentage
Amount of Levy
4,542 97.83%
4,809 94.70%
5,326 99.53%
5,742 93.88%
4,925 90.42%
5,471 97.74%
5,665 98.06%
5,851 98.32%
6,193 98.50%
City of Rancho Palos Verdes
Direct and Overlapping Governmental Activities Debt
Current Year
CITY OF RANCHO PALOS VERDES
2013-14 Assessed Valuation: $10,298,532,099
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Los Angeles County Flood Control District
Metropolitan Water District
Los Angeles Community College District
Los Angeles Unified School District
Palos Verdes Unified School District
City of Rancho Palos Verdes
Palos Verdes Library District
Los Angeles County Regional Park and Open Space Assessment District
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations
Los Angeles County Superintendent of Schools Certificates of Participation
Los Angeles County Sanitation District No. 5 Authority
Los Angeles County South Bay Cities Sanitation District Authority
Los Angeles Unified School District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND DEBT
Less: Los Angeles County General Fund Obligations supported by landfill revenues
Los Angeles Unified School District QZABs supported by investment fund
TOTAL NET OVERLAPPING GENERAL FUND DEBT
TOTAL DIRECT DEBT
TOTAL GROSS OVERLAPPING DEBT
TOTAL NET OVERLAPPING DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
Total Debt City's Share of
6/30/2014 %Applicable (1) Debt 6/30/14
$17,480,000 0.92% $161,515
132,275,000 0.471 623,015
3,642,560,000 1.647 59,992,963
12,240,310,000 0.193 23,623,798
75,600,531 47.82 36,152,174
0 100 0
3,530,000 50.297 1,775,484
113,615,000 0.904 1,027,080
$123,356,029
$1,835,420,030
9,529,882
35,543,738
6,055,916
365,858,657
0.90% $16,592,197
0.904 86,150
10.849 3,856,140
4.348 263,311
0.193 706,107
$21,503,905
45,519
9,750
$21,448,636
$0
$144,859,934
$144,804,665
$144,859,934 (2)
$144,804,665
(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 2013-14 Assessed Valuation:
Direct Debt
Total Direct and Overlapping Tax and Assessment Debt
Gross Combined Total Debt
Net Combined Total Debt
Source: 2013-14 California Municipal Statistical Co.
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0.00%
1.20%
1.41%
1.41%
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Debt Limit $ 1,021,177 $ 1,105,647 $ 1,195,665 $ 1,274,916 $ 1,345,594 $ 1,351,617 $ 1,382,850 $ 1,420,256 $ 1,455,636 $ 1,533,583
Total Net Debt applicable to limit
Legal Debt Margin $ 1,021,177 $ 1,105,647 $ 1,195,665 $ 1,274,916 $ 1,345,594 $ 1,351,617 $ 1,382,850 $ 1,420,256 $ 1,455,636 $ 1,533,583
Total Net Debt applicable to the limit
as a percentage of Debt Limit 0%
0% 0% 0% 0% 0% 0% 0% 0% 0%
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Total Taxable Value (see page 127)
Debt Limit (15% of total taxable value)
Debt applicable to limit
Legal Debt Margin
$ 10,223,889
1,533,583
$ 1,533,583
City of Rancho Palos Verdes
Demographic and Economic Statistics
Last Ten Fiscal Years
Per Capita **Public County City City
Fiscal Personal Personal Median School Unemployment Unemployment County Population
Year Population (1) Income (2) Income (2) Age Enrollment Rate (%) (3) Rate (%) (3) Population (1) (% of County)
2004-05 43,525 2,014,946,000 46,294 43.4 11,805 5.3% 1.8% 10,077,865 0.43%
2005-06 42,991 1,990,225,000 46,294 43.4 12,052 4.7% 1.6% 10,163,097 0.42%
2006-07 43,092 2,411,687,000 55,966 43.4 12,030 4.9% 1.7% 10,233,263 0.42%
2007-08 42,964 2,549,698,580 59,345 44.4 11,976 7.2% 2.5% 10,275,914 0.42%
2008-09 42,720 2,262,493,920 52,961 43.4 12,033 7.5% 2.5% 10,301,658 0.41%
2009-10 42,642 2,250,346,266 52,773 44.9 11,900 11.6% 4.0% 10,355,053 0.41%
2010-11 41,766 2,425,936,344 58,084 44.3 11,928 11.9% 4.1% 9,858,989 0.42%
2011-12 41,897 2,561,016,971 61,127 47.6 11,840 11.1% 3.8% 9,884,632 0.42%
2012-13 42,114 2,618,143,152 62,168 47.8 11,873 11.0% 3.7% 9,958,091 0.42%
2013-14 42,358 2,564,205,491 60,537 47.6 11,700 7.6% 2.5% 10,041,797 0.42%
Source: MuniServices, LLC
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, 2010 American Community Survey.
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.
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2013-14
Taxpayer
7 -Eleven Food Stores
Admiral Risty Restaurant
America's Tire
Asaka Japanese Cuisine
Carl's Jr. Restaurant
Centinela Feed & Pet Supplies Inc
Chevron Service Stations
Coco's Restaurants
El Polio Loco
Good Night Mattress
Green Hills Memorial Park
Green Hills Mortuary
Hughes Markets
IHOP Restaurants
Jack In The Box Restaurants
Los Verdes Country Club
Marie Callender Restaurant
Marshalls
Mobil Service Stations
O'Reilly Auto Parts
Smart & Final
Swank Audio Visuals
Terranea Resort
Trader Joe's
Trump National Golf Club
City of Rancho Palos Verdes
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
Business Type
Food Markets
Restaurants
Auto Parts/Repair
Restaurants
Restaurants
Miscellaneous Retail
Service Stations
Restaurants
Restaurants
Furniture/Appliance
Miscellaneous Other
Miscellaneous Other
Food Markets
Restaurants
Restaurants
Restaurants
Restaurants
Apparel Stores
Service Stations
Auto Parts/Repair
Food Markets
Electronic Equipment
Restaurants
Food Markets
Miscellaneous Retail
2004-05
Taxpayer
Admiral Risty Restaurant
America's Tire
Ampak Enterprises
California Do It Center
Carl's Jr. Restaurant
Chevron Service Stations
Coco's Restaurants
El Polio Loco
Fedex Office
Good Night Mattress
Green Hills Memorial Park
Green Hills Mortuary
Hughes Markets
Los Verdes Country Club
Marie Callender Restaurant
Mobil Service Stations
New York Food & Catering
O'Reilly Auto Parts
Pacific Crown Service Station
Rolling Hills Plastics
Smart & Final
Snap On Tools
The Brixey Corporation
Trader Joe's
Trump National Golf Club
Source: SBOE data, MuniServices, LLCTop Sales Tax Producers listed in alphabetical order.)
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Business Type
Restaurants
Auto Parts/Repair
Light Industry
BIdg.Matls-Retail
Restaurants
Service Stations
Restaurants
Restaurants
Miscellaneous Retail
Furniture/Appliance
Miscellaneous Other
Miscellaneous Other
Food Markets
Restaurants
Restaurants
Service Stations
Restaurants
Auto Parts/Repair
Service Stations
Light Industry
Food Markets
Miscellaneous Other
Office Equipment
Food Markets
Miscellaneous Retail
City of Rancho Palos Verdes
Principal Employers
Current Year and Three Years Ago
2014 2011
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Palos Verdes Peninsula Unified School District 1,970 1 9.04%
Terranea Resort Hotel 730 2 3.35%
Trump National (1) 260 3 1.19%
Marymount College 220 4 1.01%
Keller Williams Realty 163 5 0.75%
Canterbury 115 6 0.53%
Belmontcorp LTD 111 7 0.51%
Trader Joe's 88 8 0.40%
Ralphs 83 9 0.38%
Green Hills Memorial Park 80 10 0.37%
Palos Verdes Peninsula Unified School District 1970 1 9.75%
Terranea Resort Hotel 730 2 3.61%
Trump National 300 3 1.49%
Marymount College 195 4 0.97%
Ralphs 115 5 0.57%
Keller Williams Realty 112 6 0.55%
Belmontcorp Ltd 94 7 0.47%
Green Hills Memorial Park 85 8 0.42%
American Golf Corp 70 9 0.35%
Trader Joe's 54 10 0.27%
Subtotal of Principal Employers 3,820 17.52% 3,725 18.44%
Total City Employment (2)
21,800 20,200
Source: MuniServices, LLC
Results based on direct correspondence with city's local businesses.
(1) Includes full time and part time employees.
(2) Total City Employment provided by EDD Labor Force Data.
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City of Rancho Palos Verdes
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
General Government 45 47 50 55 58 53 54 52 53 54
Recreation Part -Time 10 10 10 10 11 16.5 18 16.5 16 22
Total 55 57 60 65 69 69.5 72 68.5 69 76
Source: City Budget documents and Payroll records
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2005 2006 2007
City of Rancho Palos Verdes
Operating Indicators by Function
Last Ten Fiscal Years
2008 2009 2010 2011 2012 2013 2014
Function
Administration
Employee Resignations 4 4 4 8 4 9 5 8 7 14
Workers Compensation Claims 3 4 2 4 2 5 3 3 3 1
Liability Claims 18 31 14 16 13 13 14 11 14 9
Budget Adjustments 36 48 32 26 18 21 17 11 24 15
Business Licenses Issued 1,909 1,801 1,837 1,709 1,819 1,629 1,891 1,294 1,868 1,997
Web Site Page Views 224,777 1.3 mil 1.6 mil 701,004 3.8 mil 2.9 mil 2.8mi1 3.0mi1 3.1mi1 3.3mi1
Public Safety
Part I Crime Rates (per 10,000 population) 101 120 139 123 102 110 143 131 149 107
Public Works
Solid Waste Diversion Rates (1) 59% 55% 56% 4.7Ibs/person/day 4.1Ibs/person/day 4.2Ibs/person/day 4.2Ibs/person/day 4.2Ibs/person/day 2.871bs/person/day 2.841bs/person/day
Pavement Rating 89 82 82 DNA 85 85 85 85 84 82
Parks and Recreation
Park Events 780 937 770 692 825 690 580 582 765 631
Class Meetings at Parks 2,893 2,856 2,647 2,772 2,708 2,398 2,313 1,587 1,202 1,233
Docent Led Nature Hikes 65 62 98 91 105 103 105 104 121 109
Community Development
Building Permits Processed 1,233 1,382 1,244 1,692 1,404 1,243 1,432 1,221 1,403 1,492
Plan Checks 208 163 164 247 226 154 161 161 268 264
Municipal Code Violations Closed 180 159 162 216 339 138 371 321 312 392
Source: City Departments
DNA: Data Not Available
(1): A new system of measuring AB939 compliance was implemented in 2008 with the passage of SB1016. This changed the previous diversion calculation method to the new disposal -based indicator - the
per capita disposal rate. The per capita disposal target is based on the average of 50 percent of generation in 2003 through 2006, expressed in terms of per capital disposal.
139
City of Rancho Palos Verdes
Capital Asset Statistics by Function
Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
Administration
Computer Workstations 81 81 85 91 92 101 92 88 93 98
Public Safety (1)
Public Works
Street Miles 143 143 143 143 143 143 143 144 141 141
Traffic Signals 15 15 15 16 16 16 16 18 15 15
Parks and Recreation
Parks 15 16 16 16 16 15 15 15 15 16
Community Development
Vehicles Used for Inspections
3 3 3 5 5 5 5 5 5 4
Source: City Capital Asset Records
DNA: Data Not Available
(1): Public safety services are contracted with other agencies. The City does not own any public safety capital assets.
140