CAFR FY 2009-10n
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CITY OF RANCHO PALOS VERDES,
CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2010
Prepared By:
Finance & Information Technology Department
Dennis McLean, Director
Kathryn Downs, Deputy Director
Cover photo provides a view of the coastal trail at Lower Point Vicente
INTRODUCTORY SECTION
Abalone Cove
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents i -iii
Letter of Transmittal iv -viii
Directory of City Officials ix
Organization Chart x
GFOA Certificate of Achievement for Excellence in Financial Reporting xi
FINANCIAL SECTION:
Independent Auditor's Report
Management Discussion and Analysis 7
Government -Wide Financial Statements
Statement of Net Assets 19
Statement of Activities 20
Fund Financial Statements
Governmental Funds
Balance Sheet
24
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
27
Statement of Revenues, Expenditures, and Changes in Fund Balances
28
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities
30
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual
31
Street Maintenance Special Revenue Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
- Budget and Actual
33
Redevelopment Agency Housing Set -Aside Special Revenue Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
- Budget and Actual
34
Proprietary Funds
Statement of Net Assets
35
Statement of Revenues, Expenses, and Changes in Fund Net Assets
36
Statement of Cash Flows
37
Notes to the Financial Statements 40
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
Supplementary Information
Major Fund Budgetary Comparison Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual
RDA Debt Service Fund 70
Capital Improvements Capital Projects Fund 71
Non -Major Governmental Funds
Combining Balance Sheet
78
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances
84
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Special Revenue Funds
Air Quality Management Fund
90
Community Development Block Grant Fund
91
Community Development Block Grant Fund Recovery Act
92
El Prado Fund
93
Proposition A Fund
94
Proposition C Fund
95
Measure R
96
Beautification Fund
97
Waste Reduction Fund
98
Public Safety Grants Fund
99
1972 Act Fund
100
1911 Act Fund
101
JPIA — Portuguese Bend Fund
102
Habitat Restoration Fund
103
Subregion One Maintenance Fund
104
Measure A Fund
105
Abalone Cove Sewer Assessment District
106
Rancho Palos Verdes TV Channel
107
Dr. Allen and Charlotte Ginsburg Cultural Arts Building
108
Donor Restricted Contributions
109
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Capital Projects Funds
Bikeways Fund
110
RDA Abalone Cove Fund
111
Environmental Excise Tax Fund
112
Quimby Fund
113
Affordable Housing Fund
114
RDA Portuguese Bend Fund
115
Utility Undergrounding Fund
116
Roadway Beautification Fund
117
ii
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual — Permanent Fund
JPIA — Abalone Cove Fund 118
Internal Service Funds
Combining Statement of Net Assets 120
Combining Statement of Revenues, Expenses, and Changes
in Fund Net Assets 121
Combining Statement of Cash Flows 122
STATISTICAL SECTION (Unaudited)
Financial Trends
Net Assets by Component
126
Changes in Net Assets
127
Governmental Activities Tax Revenue By Source
129
Fund Balances of Governmental Funds
130
Changes in Fund Balances of Governmental Funds
131
General Governmental Tax Revenues By Source
132
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property
133
Property Tax Rates - Direct and Overlapping Governments
134
Principal Property Tax Payers
135
Property Tax Levies and Collections
136
Debt Capacity
Ratios of Outstanding Debt by Type
137
Direct and Overlapping Governmental Activities Debt
138
Legal Debt Margin Information
139
Demographic and Economic Information
Demographic and Economic Statistics
140
Principal Sales Tax Payers
141
Principal Employers
142
Operating Information
Full-time Equivalent City Government Employees by Function
143
Operating Indicators by Function
144
Capital Asset Statistics by Function
145
III
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CITYOFLRANCHO PALOS
January 19, 2011
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, 2010, is hereby submitted as mandated by both local ordinances and state statutes. These ordinances and
statutes require that the City of Rancho Palos Verdes issue annually a report on its financial position and activity, and
that an independent firm of certified public accountants audit this report. Responsibility for both the accuracy of the
data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best
of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that
presents fairly the financial position and results of operations of the various funds and component units of the City of
Rancho Palos Verdes. In addition, to the best of our knowledge, there are no untrue statements of material fact
within the financial statements or omissions of material fact to cause the financial statements to be misleading. All
disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been
included.
The financial section of the CAFR includes management's discussion and analysis (MD&A). This 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 units, the Rancho Palos Verdes Redevelopment
Agency and the Joint Powers Improvement Authority. A component unit is a legally separate entity for which the
primary government is financially accountable. The City provides a broad range of services, including police
protection, solid waste collection, construction and maintenance of streets and other infrastructure, planning and
zoning activities, recreational activities, cultural events, and general administrative services. The City of Rancho
Palos Verdes is a contract city, meaning that some of these services are provided by contract with other agencies
(both public and private) and some services are delivered by the City's own employees.
Special districts of the County of Los Angeles provide library services, fire protection services, and sewer services.
The City has excluded the County of Los Angeles, as well as the State of California and various school districts, from
the financial reporting entity because they do not meet the established criteria for inclusion.
GOVERNMENTAL STRUCTURE
The City of Rancho Palos Verdes is located on a coastal peninsula overlooking the Pacific Ocean in Los Angeles
County, 20 miles south of the City of Los Angeles. The City was incorporated September 7, 1973. The City currently
has a land area of 13.6 square miles and a population of about 43,000. The City is primarily a "bedroom" community
with relatively little commercial activity.
The City has operated under the council-manager form of government since incorporation. Policy-making and
legislative authority are vested in the governing council, which consists of five council members, including the mayor
and mayor pro -tem. The governing council is responsible, among other things, for passing ordinances, adopting the
budget, appointing committees and hiring the city manager and the city attorney. The city manager is responsible for
carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the
government, and for appointing the heads of the government's departments. The council is elected on a non-
partisan, at -large basis. Council members are elected to four-year staggered terms with two or three council
members elected every two years. The council designates the mayor and mayor pro -tem for a one-year term.
MAJOR INITIATIVES
IV
The City's staff, following specific directives of the City Council and the City Manager, has been involved in a variety
of projects throughout the year. These projects reflect the government's commitment to ensuring that its citizens are
able to live and work in an enviable environment.
Community Development
➢ The City together with the Palos Verdes Peninsula Land Conservancy continued management of the City's
Natural Communities Conservation Plan (NCCP) Preserve, implemented a Preserve Trails Plan and successfully
acquired the last major parcel of open space for completion of the habitat preserve.
➢ The City continued to formally monitor development projects in surrounding jurisdictions (referred to as "border
issues") to assess their potential impacts upon the City and its residents.
➢ The City continued to approve the installation of various commercial antenna facilities for cellular telephones and
personal communication systems on private property throughout the City.
➢ The City continued to take steps in updating its General Plan by working with a consulting team in the
preparation of various studies to support the General Plan Update. Staff is currently presenting Draft General
Plan Elements to the Planning Commission for initial review. Staff expects the General Plan Update to be
completed in 2011.
➢ The City continued to implement its Housing Element by working with a developer to secure tax credit financing
to fund the "Mirandela" 34 unit affordable housing project. The project is a multi -family rental housing project that
will be made available to seniors 62 years and older that qualify under extremely -low, very -low, low and moderate
incomes. The project will be funded by a combination of sources, which include the City's In -lieu Affordable
Housing Fund, the Redevelopment Agency's 20% Affordable Housing Fund, and 9% Tax Credits awarded by the
California Tax Credit Allocation Committee. Construction of the project began in November 2009. The project
will be completed in December 2010 with occupancy also expected beginning in December 2010.
➢ The City continued to work with the Annenberg Foundation to improve Lower Point Vicente Park with the
construction of an animal education facility, outdoor exhibits and other public site improvements.
➢ The City implemented the approved Vision Plan, a coordinated master plan consisting of program, design and
linkage concepts for land located within the coastal region of the City.
Public Works
➢ Completed the City Hall emergency power generator system installation.
➢ Arranged more than $6.1 million of restricted funding for the successful acquisition of about 191 acres of open
space known as Upper Filiorum. Funding sources included $5.5 million from the Wildlife Conservation Board; a
contribution of $400,000 from the Palos Verdes Peninsula Land Conservancy; and $220,000 of bond proceeds
from the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002.
➢ Completed roadway resurfacing of Hawthorne Boulevard and Palos Verdes Drive West with rubber asphalt
pavement. Federal funding from the American Recovery and Reinvestment Act of 2009 and rubber recycling
grant money assisted with the funding of the project.
➢ Completed construction of median improvements along Hawthorne Boulevard and Palos Verdes Drive West.
➢ The City Council awarded a seven-year residential solid waste and recycling agreement to EDCO Disposal
Corporation effective July 1, 2010. The new agreement included:
o Savings for residents of about $870,000 annually compared to the previous agreement;
o Use of new alternative fuel (CNG) trucks; and
o A decrease of trash truck traffic on the streets, thereby reducing road wear and tear.
➢ City Council approved the Palos Verdes Drive East Preliminary Study Report, which documents and
recommends safety improvements to achieve a multi -modal corridor.
➢ Implemented the first year of the Oversized Vehicle parking permit program.
V
A Received City Council approval to conduct a project study report for the Lower San Ramon Canyon drainage
project.
➢ Completed the Sanitary Sewer System Master Plan Update and updated the City's Geographic Information
System (GIS) for the sanitary sewer system.
Parks and Recreation
A Staff worked with the Palos Verdes Peninsula Land Conservancy to create a webpage dedicated to the Palos
Verdes Nature Preserve, complete with trail maps for individual reserves.
➢ Throughout Point Vicente Interpretive Center's Phase 2 and 3 improvements completed this past year, the center
remained very popular, attracting approximately 40,000 visitors.
➢ In concert with coordinating annual special events open to the public, such as the July 4th Independence Day
Celebration, Whale of a Day Celebration, and Shakespeare by the Sea performance, the Recreation and Parks
Department strives to implement new programs each year based on the community's need. Some of the new
programs implemented this year include, the Junior Ranger Program, Egg Hunt Eggstravaganza, Night at the
Museum, and the Learning by the Shore Lecture Series.
➢ The City's volunteer organization, Los Serenos de Point Vicente, continued its successful docent -led hike
program at several locations, including the ocean trails at Trump National, the tide pools at Abalone Cove
Shoreline Park, and Discovery Room at Ladera Linda.
➢ Through the City's Gifts for Parks program, Recreation and Parks staff and the Los Serenos de Point volunteer
organization, continued to pursue donations for PVIC exhibits, the Fourth of July Celebration, and the REACH
program for developmentally disabled young adults.
➢ Staff assisted in the development of the City's Volunteer Handbook and assumed responsibility for the City Hall
reception area.
➢ In accordance with the Recreational Facilities' Tactical Goals set by the City Council, Recreation and Parks staff
facilitated community workshops to solicit input for the Lower Hesse and Grandview Park conceptual plans.
Final adoptions of plans are scheduled to be considered by the City Council in late 2010.
Administration
➢ Staff presented a report to the City Council in November 2009 to initiate a formal Master Plan of the Civic Center
site (Upper Point Vicente) by preparation of a space analysis, master site plan, and funding alternatives. The
City Council also conducted a workshop in June 2010 on the various funding alternatives for the project.
➢ RPV TV continued to expand programming offered on the City's cable channel, RPV TV, including rebroadcasts
of the City Council and Planning Commission meetings, productions of a wide variety of local interest
programming and offering a Video Bulletin Board featuring local community events.
➢ The City Council conducted a Tactical Planning Workshop in January 2010 which identified the City's major
initiatives for a two-year period ending December 2011.
➢ The City retained a federal advocacy firm to seek federal funding for the San Ramon Canyon Stabilization
Project in August 2009.
➢ The City Council adopted a Retirement Health Savings Plan for employees in November 2009.
➢ The City hosted a City Council Team Building Workshop with all Councilmembers and Management Staff in
January 2010 to develop core values and leadership protocols.
➢ The City hosted Community Leaders' Breakfast in April 2010 to gather input on the development of Conceptual
Design Plans for Lower Hesse and Grandview Parks.
Vi
➢ The City continued to work with a consultant to pursue promising grant opportunities. Most notably, the City
received a $500,000 grant from the Coastal Conservancy to improve the portion of the California Coastal Trail
within our jurisdiction.
➢ The City completed a salary survey in May 2010 to adjust salary ranges to maintain the City's desired market
position to attract and retain employees.
➢ The City Council reviewed the benefits and detriments of becoming a Charter City and placed the issue of
adopting a charter on the March 8, 2011 ballot in September 2010.
➢ The City conducted an Emergency Preparedness Drill in October 2010 in conjunction with the state-wide "Great
California Shake Out" and adopted the Standardized Emergency Management System (SEMS)/National Incident
Management System (NIMS) Multi -Hazard Functional Emergency Operations Plan in November 2010.
FINANCIAL INFORMATION
Internal Control. The Finance and Information Technology department of the City is responsible for establishing and
maintaining an appropriate internal control structure. The internal control system is designed to ensure that the
assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled
to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are
met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits
likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgements by management.
Budgeting Controls. The City of Rancho Palos Verdes maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with legal provisions contained in the annual appropriated budgets
approved by the City Council, Redevelopment Agency Board, and Improvement Authority Commission. Activities of
the General fund, Special Revenue funds, Capital Projects funds, Debt Service fund and Permanent fund are included
in the annual appropriated budgets of the government units. The level of budgetary control (that is, the level at which
expenditures cannot legally exceed the appropriated amount) is established at the department/function level within
each fund. Formal budgetary integration is employed as a management control device. The City also maintains an
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 $940,720 favorable budget variance in the General
fund for the fiscal year ended June 30, 2010. Favorable expenditure variances including a retroactive adjustment for
general liability insurance and various maintenance savings were the drivers of the overall favorable variance. Many
of the favorable expenditure variances were permanent savings resulting from conservative budget practices and the
continued careful management of resources during FY09-10.
Significant Financial Events. The City acquired 191 acres of open space at a total cost of about $6.5 million, funded
by more than $6.1 million of grants and contributions. In addition, the Redevelopment Agency loaned approximately
$6.3 million of affordable housing monies to the developer of a senior housing project. As a part of the affordable
housing loan, land held by the Redevelopment Agency with an original cost of $702,392 was sold to the developer for
$2,990,000. Both transactions have been included in the Statement of Net Assets and the Statement of Activities in
the Financial Section of this report. There were no changes to financial policies that resulted in a significant impact
on the June 30, 2010 financial statements.
Independent Audit. The City requires an annual audit by independent certified public accountants. The accounting
firm of Diehl, Evans & Company, LLP conducted this year's audit. The auditors' report on the government -wide
financial statements and combining and individual fund statements and schedules is included in the financial section
of this report.
Single Audit. As a recipient of federal, state, and county financial assistance, the City is responsible for ensuring that
an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to
those programs. This internal control structure is subject to periodic evaluation by management. In years when over
$500,000 is expended on Federal financial assistance programs, the City is required to undergo an annual single
audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget
Circular A-133, Audits of States. Local Governments, and Non -Profit Organizations. For the year ended June 30,
2010, $1,602,155 was expended on Federal financial assistance programs; and therefore a Single Audit will be
completed by March 31, 2011.
Audit Committee. The City Council appointed two Council members to an ad-hoc Audit Committee for 2010. The
Audit Committee conducted an exit interview with auditors and received the draft audited financial statements prior to
finalizing the document.
GFOA Certificate of Achievement Award. The Government Finance Officer's Association of the United States and
Canada (GFOA) oversees a prestigious national award program to recognize conformance with the highest
standards of report preparation. In order to be awarded a Certificate of Achievement, a government unit must publish
an easily readable and efficiently organized CAFR. This report must satisfy both Generally Accepted Accounting
Principles and applicable legal requirements.
The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Rancho Palos
Verdes for its CAFR for the fiscal year ended June 30, 2009. This was the 17" consecutive year that the City of
Rancho Palos Verdes has achieved this prestigious award. A copy of the GFOA Certificate of Achievement is
included later in the introductory section of this year's CAFR. A Certificate of Achievement is valid for a period of one
year only. We believe our current CAFR continues to meet the Certificate of Achievement Program's requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments. Completion of this report was the accomplishment by combined efforts of many individuals,
especially Linda Gan-Vanderlinde, Senior Accountant, and Kathryn Downs, Deputy Director of Finance and
Information Technology, who coordinated preparation of the report. I wish to acknowledge the assistance of our
auditors, Diehl, Evans & Company, LLP and the contributions of other Finance and Information Technology
Department staff: Jane Lin, Selena Wright, Gayle Vanoverbeck, and Nancy Vitez.
I would also like to recognize the City Council for their continued leadership directing the City to achieve a sound
fiscal position over the last several years. We look forward to maintaining this success in the future under the
leadership of the City Council.
Respectfully submitted,
Dennis McLean
Director of Finance & Information Technology
Viii
CITY OF RANCHO PALOS VERDES
DIRECTORY OF CITY OFFICIALS
JUNE 30, 2010
CITY COUNCIL
Stefan Wolowicz, Mayor
Thomas D. Long, Mayor Pro -Tem
Brian Campbell, Councilman
Anthony M. Misetich, Councilman
Douglas W. Stern, Councilman
ADMINISTRATION AND DEPARTMENT HEADS
CityManager........................................................................................................................................................ Carolyn Lehr
DeputyCity Manager........................................................................................................................................ Carolynn Petru
CityClerk.......................................................................................................................................................... Carla Morreale
Director of Finance and Information Technology.............................................................................................. Dennis McLean
Director of Planning, Building and Code Enforcement..............................................................................................Joel Rojas
Interim Director of Public Works........................................................................................................................... Ray Holland
Interim Director of Recreation and Parks................................................................................................................. Tom Odom
CityAttorney................................................................................................................................ Richards, Watson & Gershon
ix
CITY OF RANCHO PALOS VERDES
ORGANIZATIONAL CHART
CITIZENS OF
RANCHO PALOS VERDES
I MAYOR AND CITY COUNCIL I
COMMISSIONS & COMMITTEES
Planning Commission
Traffic Safety Commission
Finance Advisory Committee
CITY MANAGER
Administration
Personnel/Community Outreach
Risk Management
COMMISSIONS & COMMITTEES
Emergency Preparedness Committee
Oversight Committee for the Water Quality & Flood
Protection Program
CITY ATTORNEY
Richards, Watson & Gershon
RECREATION & PARKS
FINANCE & INFORMATION
CITY CLERK
Park Facilities Staffing
TECHNOLOGY
Records Management
COMMUNITY DEVELOPMENT
Financial Reporting & Budget
Public Information
Accounts Payable/Receivable
Elections
Animal Control
Payroll
Building & Safety/Geology
REACH Program
Purchasing
Capital Projects
Code Enforcement
Information Technology
RECREATION & PARKS
PUBLIC WORKS
Park Facilities Staffing
COMMUNITY DEVELOPMENT
Point Vicente Interpretive Center
Planning/Zoning
Animal Control
Special Events
Building & Safety/Geology
REACH Program
Capital Projects
Code Enforcement
View Restoration
PUBLIC SAFETY
PUBLIC WORKS
L.A. County Sheriff
Street Maintenance
L.A. County Fire
Refuse/City Engineering
Animal Control
Park/Building Maintenance
Emergency Preparedness
Capital Projects
I:1
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, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAF.Rs) achieve the highest
standards in government accounting
and financial reporting.
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Executive Director
xi
FINANCIAL SECTION
---/ --12-
City Hall Emergency Operating Center
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
5 CORPORATE PARK, SUITE 100
IRVINE, CALIFORNIA 92606-5165
(949) 399-0600 • FAX (949) 399-0610
www.dichlevans.com
January 19, 2011
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and
Members of City Council
City of Rancho Palos Verdes
Rancho Palos Verdes, California
MICHAEL R. LUDIN, CPA
CRAIG W. SPRAKER, CPA
NITIN P. PATEL, CPA
ROBERT J. CALLANAN, CPA
*PHILIP H. HOLTKAMP, CPA
*THOMAS M. PERLOWSKI, CPA
*HARVEY J. SCHROEDER, CPA
KENNETH R. AMES, CPA
WILLIAM C. PENTZ, CPA
*A PROFESSIONAL CORPORATION
We have audited the accompanying financial statements of the governmental activities, the
business -type activity, each major fund, and the aggregate remaining fund information of the City of
Rancho Palos Verdes, California, as of and for the year ended June 30, 2010, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City of Rancho Palos Verdes's management. Our responsibility
is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes consideration of internal control over financial
reporting as a basis for designing 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 over financial
reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activity, each major fund,
and the aggregate remaining fund information of the City of Rancho Palos Verdes, California, as of
June 30, 2010, and the respective changes in financial position and cash flows, where applicable,
thereof and the respective budgetary comparison for the General, Street Maintenance Special Revenue
and Redevelopment Agency Housing Set -Aside Special Revenue major governmental funds for the
year then ended in conformity with accounting principles generally accepted in the United States of
America.
OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330
CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598
(760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890
3
In accordance with Government Auditing Standards, we have also issued our report dated
January 19, 2011, on our consideration of the City of Rancho Palos Verdes's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements and other matters. The purpose of that report is to describe the scope of
our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
The management's discussion and analysis, as listed in the table of contents as required supplementary
information, is not a required part of the basic financial statements but is supplementary information
required by the accounting principles generally accepted in the United States of America. This
information is 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 management's discussion and analysis in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during the
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
management's discussion and analysis because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Our audit was made for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The combining statements and individual fund
schedules are presented for purposes of additional analysis and are not a required part of the basic
financial statements of the City. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the
financial statements. The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
Our audit was conducted for the purpose of forming opinions on the basic financial statements of the
City of Rancho Palos Verdes, California as a whole. The introductory section and statistical section
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information has 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.
4
MANAGEMENT'S DISCUSSION & ANALYSIS
a
11
t
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2010
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, 2010. 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 -viii 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, 2010, by $163,468,852 (Net Assets). Of this amount, $34,679,238 (Unrestricted
Net Assets) may be used to meet the government's ongoing obligations to its citizens and
creditors.
➢ The City's Total Net Assets increased by $8,740,039. The majority of the increase is attributable
to two factors: 1) capital grants and contributions revenue totaling $6,130,913 was used to
purchase additional open space; and 2) the Redevelopment Agency (RDA) recognized a
$2,287,608 gain for the sale of land held for development as part of a senior housing project.
➢ As of June 30, 2010, the City's Governmental Funds reported combined ending Fund Balances of
$23,147,222, a decrease of $287,017 (1.22%). In general, sources were equivalent to uses for
FY09-10; however, the City accrued a contingent liability of $320,000 for a potential settlement of
litigation.
➢ As of June 30, 2010, unreserved/undesignated Fund Balance for the General Fund was
$10,744,126 or 54% of total General Fund expenditures and transfers out.
➢ The City's total debt decreased by $440,363 (6%) during the current Fiscal Year. The decrease
was primarily attributable to a $354,606 principal payment of the RDA deferred interest payable
and a $65,000 principal payment of the RDA Tax Allocation Bonds.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements,
which are comprised of three components: 1) Government -Wide Financial Statements; 2) Fund Financial
Statements; and 3) Notes to the Financial Statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government -Wide Financial Statements. The Government -Wide Financial Statements are designed to
provide readers with a broad overview of the City's finances, in a manner similar to a private -sector
business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as Net Assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City of Rancho Palos Verdes is
improving or deteriorating.
The Statement of Activities presents information showing how the government's net assets changed during
the most recent Fiscal Year. All changes in net assets are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes and earned but unused vacation leave).
Both the Government -Wide Financial Statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business -type
See independent auditors' report.
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2010
activities). The governmental activities of the City include general government, public safety, public
works, planning, building and safety, and recreation. The City's business -type activities include only the
Water Quality and Flood Protection program for renewal and maintenance of the City's storm drain
facilities.
The Government -Wide Financial Statements include not only the City of Rancho Palos Verdes itself
(known as the Primary Government), but also a legally separate Redevelopment Agency and a legally
separate Improvement Authority for which the City of Rancho Palos Verdes is financially accountable.
Financial information for these Component Units has been included as an integral part of the primary
government.
The Government -Wide Financial Statements can be found on pages 19-21 of this report.
Fund Financial Statements. A Fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Rancho Palos
Verdes, like other State and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the Funds of the City can be divided into three
categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds.
Governmental Funds. Governmental Funds are used to account for essentially the same functions
reported as governmental activities in the Government -Wide Financial Statements. However, unlike the
Government -Wide Financial Statements, Governmental Fund Financial Statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at the
end of the Fiscal Year. Such information may be useful in evaluating a government's near-term financing
requirements.
Because the focus of Governmental Funds is narrower than that of the Government -Wide Financial
Statements, it is useful to compare the information presented for Governmental Funds with similar
information presented for governmental activities in the Government -Wide Financial Statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing decisions.
The Governmental Balance Sheet and Governmental Fund Statement of Revenues, Expenditures, and
Changes in Fund Balances provide a reconciliation to facilitate this comparison between Governmental
Funds and governmental activities.
The City of Rancho Palos Verdes maintained 34 individual Governmental Funds during the Fiscal Year
ended June 30, 2010. Information is presented separately in the Governmental Fund Balance Sheet and in
the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the
General Fund, the Street Maintenance Fund, the RDA Housing Set -Aside Fund, the Capital Improvements
Fund and the RDA Debt -Service Fund, all of which are considered to be major funds. Data from the other
29 Governmental Funds are combined into a single, aggregated presentation. Individual fund data for each
of these Other Governmental Funds is provided in the forth of combining statements elsewhere in this
report.
The City of Rancho Palos Verdes adopts an annual appropriated budget for each of its Governmental
Funds. A budgetary comparison statement has been provided for each Governmental Fund to demonstrate
compliance with this budget.
The basic Governmental Fund Financial Statements can be found on pages 24-34 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
See independent auditors' report
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2010
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 35-37 of this report.
The Proprietary Fund Financial Statements provide separate information for the Enterprise Fund and the
Internal Service Funds. The Enterprise Fund is presented as a single major fund of the City, while the
Internal Service Funds are combined and presented as a single, aggregated presentation in the Statement.
Individual fund data for the Internal Service Funds is provided in the form of combining statements
elsewhere in this report.
Notes to the Financial Statements. The notes provide additional information that is essential to a full
understanding of the data provided in the Government -Wide and Fund Financial Statements. The notes to
the financial statements can be found on pages 40-68 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 70-122 of this
report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position.
In the case of the City of Rancho Palos Verdes, assets exceeded liabilities by $163,468,852 at June 30,
2010. By far, the largest portion of the City's Net Assets (78%) reflects its investment in Capital Assets
(e.g. Land, Infrastructure, Buildings, and Equipment). The City uses these Capital Assets to provide
services to its citizens; consequently, these assets are not available for future spending.
City of Rancho Palos Verdes Net Assets
An additional portion of the City's Net Assets ($1,000,000 or less than 1%) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of Unrestricted Net
Assets ($34,679,238 or 21%) may be used to meet the government's ongoing obligations to its citizens and
creditors.
Governmental Activities. Governmental Activities increased the City's Net Assets by $8,042,141.
See independent auditors' report.
Governmental
Activities
Business -type
Activities
Total
June 30, 2010
June 30, 2009
June 30, 2010
June 30, 2009
June 3Q 2010
June 30, 2009
Current and other assets
Capital assets
$ 48,704,202
115,331,309
$ 44,072,296
107,867,070
$ 2,942,185
12,458,305
$ 4,286,089
12,476,664
$ 51,646,387
127,789,614
$ 48,358,385
120,343,734
Total assets
164,035,511
151,939,366
15,400,490
16,762,753
179,436,001
168,702,119
Long-term liabilities outstanding
Otherliabilities
6,680,786
9,168,799
7,121,149
4,674,432
-
117,564
-
2,177,725
0680,786
9,286,363
7,121,149
6,852,157
Total liabilities
15,849,585
11795,581
117,564
2,177725
T15,967,149
13973,306
Invested in capital assets
Restricted
Unrestricted
115,331,309
1,000,000
31,854,617
107,867,070
1,000,000
31,270715
12,458,305
-
1 2,824,621
12,476,664
-
1 2,108,364
127,789,614
1,000,000
34,679,238
120343,734
1,000,000
1 33,385,079
Total net assets
$ 148,185,926
$ 140,143,785
1 $ 15,282,926
1 $ 14,585,028
$ 163,468,852
1 $ 154,728,813
An additional portion of the City's Net Assets ($1,000,000 or less than 1%) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of Unrestricted Net
Assets ($34,679,238 or 21%) may be used to meet the government's ongoing obligations to its citizens and
creditors.
Governmental Activities. Governmental Activities increased the City's Net Assets by $8,042,141.
See independent auditors' report.
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2010
City of Rancho Palos Verdes Changes in Net Assets
Key elements of this increase are as follows:
➢ About 191 acres of open space land, known as Upper Filiorum, was acquired during FY09-10 at
the cost of about $6.5 million using capital grants and contributions revenue of about $6.1 million.
➢ The RDA sold its land held for development, known as the Crestridge property, to a developer for
$2,990,000. The land had a cost of $702,392; therefore, the transaction resulted in a $2,287,608
increase of net assets.
property Lancs
29%
Revenues by Source — Governmental Activities
charges for
other services
other taxes 13%
21% 1%
See independent auditors' report.
10
operating
Intributions
snd grants
17%
capital
contributions
and grants
19%
Governmental
Business -type
Activities
Activities
Total
June 30, 2010
June 30, 2009
June 30, 2010
June 30, 2009
June 30, 2010
June 30, 2009
Programrevenues:
Charges for services
$ 4,925,684
$ 3,369,955
$
$
$ 4,925,684
$ 3,369,955
Operating contributions and grants
6,633280
2,963,037
6,633280
2,963,037
Capital contributions and grants
7,178,874
642,020
7,178,874
642,020
General revenues:
Property taxes
11,431,192
11,462,079
11,431,192
11,462,079
Other taxes
8,019,118
5,719,141
8,019,118
5,719,141
Other
513,698
1 855,825
1277,747
168 985
1,791,445
2,538,810
Total revenues r
38,701,846
25,012,057
1,277,747
1,682,985
39,979,593
26,695042
Expenses:
Administration
7,823,738
6,356,695
-
-
7,823,738
6,356,695
Public safety
4,242,085
4,233,255
4242,085
4,233,255
Public works
13,633,475
10,555,058
13,633,475
10,555,058
Parks and recreation
1,826200
1,605,276
1,826200
1,605,276
Community development
2,549,490
2,696,502
2,549,490
2,696,502
Non -departmental
320,000
320,000
-
Interest on long-term debt
264,717
268,067
264,717
268,067
Water Quality Flood Protection
-
-
579,849
436,993
579,849
436,993
Total expenses
30,659,705
25,714,853
579,849
436,993
31239,554
26 151 846
Increase in net assets before transfers
8,042,141
702,796
697,898
1,245,992
8,740,039
543,196
Transfers
Increase in net assets
8,042,141
702,796
697,898
1,245,992
8,740,039
543,196
Netassets - beginning offiscal year
140,143,785
140,846,581
14,585,028
13,339,036
154,728,813
154,185,617
Net assets - end of fiscal year
$ 148,185,926
$ 140,143,785
$ 15282,926
$ 14,585,028
$ 163,468,852
$ 154,728,813
Key elements of this increase are as follows:
➢ About 191 acres of open space land, known as Upper Filiorum, was acquired during FY09-10 at
the cost of about $6.5 million using capital grants and contributions revenue of about $6.1 million.
➢ The RDA sold its land held for development, known as the Crestridge property, to a developer for
$2,990,000. The land had a cost of $702,392; therefore, the transaction resulted in a $2,287,608
increase of net assets.
property Lancs
29%
Revenues by Source — Governmental Activities
charges for
other services
other taxes 13%
21% 1%
See independent auditors' report.
10
operating
Intributions
snd grants
17%
capital
contributions
and grants
19%
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2010
Business -Type Activities. Business -type activities increased the City's net assets by $697,898 primarily
due to collection of storm drain user fees that will be utilized during FYI 0-11 for projects continued from
FY09-10.
Financial Analysis of Governmental Finds
As of the end of the current Fiscal Year, the City's Governmental Funds reported combined ending Fund
Balances of $23,147,222, a decrease of $287,017 in comparison with the prior year. Approximately 42%
of the combined ending Fund Balances (about $10 million) constitutes unreserved Fund Balance, which is
available for spending at the City's discretion. The combined unreserved Fund Balance includes the RDA
Debt Service negative unreserved Fund Deficit of $17,796,775. The remainder of the combined ending
Fund Balances is reserved to indicate that it is not available for new spending because it has already been
committed 1) to reserve the principal balance of loans made to the City's Redevelopment Agency
($8,072,744), and 2) for a variety of other restricted purposes ($5,453,980).
The General Fund is the chief operating fund of the City of Rancho Palos Verdes. At the end of the current
Fiscal Year, the unreserved Fund Balance of the General Fund was $12,206,576, while total Fund Balance
reached $19,373,042. As a measure of the General Fund's liquidity, it may be useful to compare both
Unreserved Fund Balance and Total Fund Balance to total fund expenditures and transfers out. Unreserved
Fund Balance represents 61% of total General Fund uses, while total Fund Balance represents 96% of that
same amount.
During Fiscal Year 09-10, the Fund Balance of the City's General Fund increased by $1,285,768. In
addition to the budgeted increase of $355,000, there was a favorable General Fund expenditure variance of
more than $940,000. The most notable variance was related to a retrospective general liability insurance
adjustment resulting in total insurance expenditure savings of about $333,000. The remaining $607,000 of
expenditure savings was comprised of insignificant amounts spread among a large number of the General
Fund's 30 budget programs. About $411,000 of this remaining expenditure variance was concentrated in
the Parks and Building Maintenance programs, which are budgeted conservatively to provide for
unforeseen costs driven by unavoidable factors such as weather and failure of aging facilities. Most of the
expenditure variances were permanent savings for FY09-10 programs.
Compared with the prior year, the Street Maintenance Fund Balance was increased by $351,537. Street
maintenance in the landslide area of the City was subsidized with an accumulated balance of Proposition C
revenue, which was required to be spent by June 30, 2010. The accumulated Street Maintenance Fund
Balance will be used to fund future street maintenance, as very little Proposition C money is expected to be
available for this purpose in FYI 0-11.
The Redevelopment Agency's Housing Set -Aside Fund Balance decreased by $643,040. The decrease was
directly related to the loan made to the developer of the senior housing project. Over $3 million was
advanced to the developer in the forth of a construction loan, which was partially offset by the $2.3 million
gain on the sale of the Crestridge property.
The Debt Service Fund has a net negative Fund Balance of $17,256,214. The Redevelopment Agency's
debt to the City is recorded in the Debt Service Fund. However, because there are currently no assets to
extinguish that debt, the fund carries a negative Fund Balance. The net decrease in the Debt Service Fund
Balance during the current year was $972,920, which primarily represents accumulated interest on the
advance from the City to the Redevelopment Agency.
The Capital Improvement Projects (CIP) Fund had an ending fund balance of $7,081,597. Of this amount,
$3.7 million is held for street improvement projects continued from FY09-10 to FY10-11 and $3.0 million
is held in reserve for emergency projects as directed by City Council policy.
See independent auditors' report
IM
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2010
Financial Analysis of Proprietary Funds
The City's Proprietary Funds provide the same type of information found in the Government -Wide
Financial Statements, but in more detail. Unrestricted Net Assets of the Enterprise Fund at the end of the
year amounted to $2,824,621. Unrestricted Net Assets of the Internal Service Funds at the end of the year
amounted to $4,219,712. The total growth in Proprietary Fund type net assets was $364,131 or 5% of
unrestricted Net Assets.
General Fund Budgetary Highlights
The difference between original budgeted expenditures and the final amended budget was a decrease of
$296,334; and is briefly summarized as follows:
➢ A decrease of $1,462,450 was attributable to appropriations continued to FYI 0-11.
➢ An increase of $1,333,300 was attributable to appropriations continued from FY08-09.
➢ Salary and benefit budgets across a number of programs were reduced by about $277,000 to
account for vacant positions.
➢ Other immaterial adjustments resulted in net increases of approximately $100,000.
Capital Asset and Debt Administration
Capital Assets. The City's investment in Capital Assets for its governmental activities as of June 30,
2010, amounts to $115,331,309 (net of accumulated depreciation). This investment in capital assets
includes land, buildings, park improvements, roadways, sewer, storm drains, vehicles, computer equipment,
furniture, other equipment, and construction in progress. During the current Fiscal Year, the City's
investment in governmental capital assets increased by about $7.5 million or about 6.9%.
Major capital asset events during the current Fiscal Year included the following:
➢ Depreciation of $3.5 million was recorded for the City's Capital Assets.
➢ About 191 acres of open space land was acquired at a cost of about $6.5 million.
➢ Residential street overlay was completed with a total cost of about $1.1 million.
➢ Improvements to Hawthorne Boulevard and Palos Verdes Drive West were completed with a total
cost of about $2.6 million.
The Capital Assets (net of accumulated depreciation) for Business -type activities as of June 30, 2010 was
$12,458,305.
See independent auditors' report.
12
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2010
City of Rancho Palos Verdes Capital Assets
(net of depreciation)
Additional information on the City's Capital Assets can be found in Note # 4 on pages 54-55 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 $6,680,786. Of this amount, $6,386,303 is a liability of the Redevelopment Agency.
City of Rancho Palos Verdes Outstanding Debt
Governmental
Activities
RDA Tax Increment Bond $ 5,250,000 $ 5,315,000
RDA Deferred Interest Payable 1,136,303 1,490,909
Employee co ensated absences 294,483 315,240
Total _ _ $ 6,680,786 $ 7,121,149
The City's total debt decreased by $440,363 (6.2%) during the current Fiscal Year, primarily due to partial
payment of the RDA deferred interest payable.
State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of
its total assessed valuation. The current debt limitation for the City of Rancho Palos Verdes is
$1,351,617,000. Additional information on the City's long-term debt can be found in Note # 5 on pages
55-58 of this report.
See independent auditors' report.
13
Governmental
Business -type
Activities
Activities
Total
June 30, 2010
June 30, 2009
June 30, 2010
June 30, 2009
June 30, 2010
June 30, 2009
Capital assets not being depreciated
Land
$ 38,808,553
$ 32,139,008
$ 1,408,493
$ 1,408,493
$ 40217,046
$ 33,547,501
Constructiar in progress
662.90
196,174
149,081
7,419,621
215,371
7,615,795
Total capitalassets not being depreciated
38,874,843
32,335,182
1,557,574
8,828,114
40,432,417
41,163,296
Capital assets being depreciated, net
Buildings
7,756,992
7,725,387
-
-
7,756,992
7,725,387
Vehicles
92,942
153,979
92,942
153,979
Computerequipment
62,538
71,327
-
-
62,538
71,327
Furniture, fixtures and equipment
107,867
92,471
3,543
5,905
111,410
98,377
Infrastructure
Roadway system
47,063,335
45,484,324
-
-
47,063,335
45,484,324
Sewer system
8,902,584
9,357,693
-
-
8,902,584
9,357,693
Stormdram system
10,431,420
10,681,899
10,897,188
3,642,644
21,328,608
14,324,543
Parksystem
1 2,038,788
1 1,964,808
2,038,788
1 1,964,808
Total capitalassets being eciated,net
1 76,456,466
1 75,531,888
1 10,900,731
3,648,550
87,357,197
79,180,438
Capital Assets, net
$ 115,331,309
$ 107,867,070
$ 12,458,305
$ 12,476,664
$ 127,789,614
$ 120,343,734
Additional information on the City's Capital Assets can be found in Note # 4 on pages 54-55 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 $6,680,786. Of this amount, $6,386,303 is a liability of the Redevelopment Agency.
City of Rancho Palos Verdes Outstanding Debt
Governmental
Activities
RDA Tax Increment Bond $ 5,250,000 $ 5,315,000
RDA Deferred Interest Payable 1,136,303 1,490,909
Employee co ensated absences 294,483 315,240
Total _ _ $ 6,680,786 $ 7,121,149
The City's total debt decreased by $440,363 (6.2%) during the current Fiscal Year, primarily due to partial
payment of the RDA deferred interest payable.
State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of
its total assessed valuation. The current debt limitation for the City of Rancho Palos Verdes is
$1,351,617,000. Additional information on the City's long-term debt can be found in Note # 5 on pages
55-58 of this report.
See independent auditors' report.
13
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30, 2010
Economic Factors and Next Year's Budgets and Rates
➢ Local property values remain strong; therefore, Property Tax Revenue (approximately 43 percent
of City -Wide Revenues) remains largely unaffected by the downturn in the economy. Los
Angeles County saw an overall decrease in property assessments of about 1.9% for FY10-11,
while the City of Rancho Palos Verdes experienced an overall increase in property assessments of
2.3%.
➢ At the time of this report, there is no significant impact to the City's FYI 0-11 revenue as a result
of the State's ongoing budget crisis. Staff continues to monitor state impacts closely, and will
report to City Council if the state takes any actions that necessitate City adjustment.
➢ The Consumer Price Index for Los Angeles County increased by 0.9% for the 12 months ended
June 2010; therefore, the City's overall FY10-11 expenditure budget was limited to an increase of
about 1% as compared to FY09-10. Revenue in excess of budgeted expenditures will fund capital
projects such as improvements to residential streets and the City's parks.
Requests for Information
This Financial Report is designed to provide a general overview of the financial position of the City of
Rancho Palos Verdes for all those with an interest in the government's finances. Questions concerning any
of the information provided in this report, or requests for additional financial information, should be
addressed to the Finance and Information Technology Department at 30940 Hawthorne Boulevard, Rancho
Palos Verdes, CA 90275 or financenae mv.com.
See independent auditors' report.
14
BASIC FINANCIAL STATEMENTS
15
' TAPAZ.
•� ,�,p�wa*K+� y � rte:
GOVERNMENT -WIDE STATEMENTS
17
Fourth of July
18
CITY OF RANCHO PALOS VERDES
June 30, 2010
See independent auditors' report and notes to financial statements.
19
Governmental
Business -type
Activities
Activities
Total
ASSETS:
Cash and investments
$ 37,707,058
$ 2,908,666
$ 40,615,724
Receivables:
Taxes
931,990
-
931,990
Interest
43,199
3,206
46,405
Notes
7,387,430
-
7,387,430
Other
1,092,419
30,313
1,122,732
Inventory
46,648
-
46,648
Prepaid costs
1,495,458
-
1,495,458
Capital assets, not being depreciated:
Land
38,808,553
1,408,493
40,217,046
Constriction in progress
66,290
149,081
215,371
Capital assets, being depreciated, net:
Property and equipment
263,347
3,544
266,891
Buildings and improvements
7,756,992
-
7,756,992
Infrastructure
68,436,127
10,897,187
79,333,314
TOTAL ASSETS
164,035,511
15,400,490
179,436,001
LIABILITIES:
Accounts payable and accrued liabilities
4,149,374
57,761
4,207,135
Interest payable
20,417
-
20,417
Retentions payable
321,967
59,803
381,770
Unearned revenue
3,767,132
-
3,767,132
Deposits payable
909,909
-
909,909
Long -terns liabilities:
Due within one year
317,429
-
317,429
Due beyond one year
6,363,357
-
6,363,357
TOTAL LIABILITIES
15,849,585
117,564
15,967,149
NET ASSETS:
Invested in capital assets, net of related debt
115,331,309
12,458,305
127,789,614
Restricted for:
Community development:
Nonexpendable
1,000,000
-
1,000,000
Unrestricted
31,854,617
2,824,621
34,679,238
TOTAL NET ASSETS
$ 148,185,926
$ 15,282,926
$ 163,468,852
See independent auditors' report and notes to financial statements.
19
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
For the year ended June 30, 2010
Functions/programs
Expenses
Capital
Charges for
Governmental Activities:
Grants and
Administration
$ 7,823,738
Public safety
4,242,085
Public works
13,633,475
Parks and recreation
1,826,200
Community development
2,549,490
Non -departmental
320,000
Interest on long-term debt
264,717
Total governmental activities
30,659,705
Business -type Activity:
-
Water Protection Flood Control
579,849
Total Primary Government $ 31,239,554
Program Revenues
4,925,684 6,633,280 7,178,874
$ 4,925,684 $ 6,633,280 $ 7,178,874
General revenues:
Taxes:
Property tax, levied for general purpose
Property tax, Redevelopment Agency
tax increment
Storm Drain user fees levied for water quality
and flood protection
Transient occupancy tax
Sales tax
Franchise tax
Motor vehicle in lieu tax (unrestricted)
Utility user tax
Other taxes
Investment income
Unrestricted grants, contributions and other revenues
Total general revenues and transfers
Change in net assets
Net assets - beginning of year
Net assets - end of year
See independent auditors' report and notes to financial statements.
20
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions
Contributions
$ 680,920
$ 25,003
$ -
229,055
103,984
-
1,355,493
6,176,906
7,178,874
896,159
28,928
-
1,764,057
298,459
-
4,925,684 6,633,280 7,178,874
$ 4,925,684 $ 6,633,280 $ 7,178,874
General revenues:
Taxes:
Property tax, levied for general purpose
Property tax, Redevelopment Agency
tax increment
Storm Drain user fees levied for water quality
and flood protection
Transient occupancy tax
Sales tax
Franchise tax
Motor vehicle in lieu tax (unrestricted)
Utility user tax
Other taxes
Investment income
Unrestricted grants, contributions and other revenues
Total general revenues and transfers
Change in net assets
Net assets - beginning of year
Net assets - end of year
See independent auditors' report and notes to financial statements.
20
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activity Total
$ (7,117,815) $
(3,909,046)
1,077,798
(901,113)
(486,974)
(320,000)
(264,717)
(11,921,860
$ (7,117,815)
(3,909,046)
1,077,798
(901,113)
(486,974)
(320,000)
(264,717)
- (11,921,860
-
(579,849)
(579,849)
(11,921,867)
(579,849)
(12,501,716)
10,352,931
-
10,352,931
1,078,261
-
1,078,261
-
1,263,572
1,263,572
1,954,507
-
1,954,507
1,245,666
-
1,245,666
1,711,458
-
1,711,458
127,660
-
127,660
2,395,109
-
2,395,109
584,718
-
584,718
207,003
14,175
221,178
306,695
-
306,695
19,964,008
1,277,747
21,241,755
8,042,141
697,898
8,740,039
140,143,785
14,585,028
154,728,813
$ 148,185,926
$ 15,282,926
$ 163,468,852
21
46
!' t .a
- Y
e
FUND FINANCIAL STATEMENTS
23
CITY OF RANCHO PALOS VERDES
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2010
FUND BALANCES (DEFICIT):
Special
Reimbursement settlement agreement
Revenue
Prepaid items
813,442 -
Street
6,306,376 -
General
Maintenance
ASSETS
- -
Inventory
Cash and investments
$ 13,920,332
$ 1,097,773
Receivables:
General fund
Taxes
887,251
-
Interest
18,513
8
Notes
-
-
Other
516,695
107,652
Due from other funds
238,613
-
Inventory
46,648
-
Prepaid items
813,442
-
Advances to other funds
17,594,675
-
TOTAL ASSETS
S 34,03776-7
S 1,205,433
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable and accrued liabilities
$ 2,191,211
$ 429,415
Due to other funds
-
-
Retentions payable
3,421
-
Deferred revenue
11,558,586
-
Advances from other funds
-
-
Deposits payable
909,909
-
TOTAL LIABILITIES
14,663,127
429,415
FUND BALANCES (DEFICIT):
Reserved for:
Reimbursement settlement agreement
- -
Prepaid items
813,442 -
Advances to other funds
6,306,376 -
Long term receivables
- -
Habitat restoration
- -
Inventory
46,648 -
Unreserved:
Designated for continuing appropriations:
General fund
1,462,450 -
Special revenue funds
-
Capital projects funds
- -
Undesignated and reported in:
General fund
10,744,126 -
Special revenue funds
- 776,018
Debt service fund
- -
Capital projects funds
- -
Permanent fund
- -
TOTAL FUND BALANCES (DEFICIT)
19,373,042 776,018
TOTAL LIABILITIES AND FUND BALANCES
$ 34,036,169 $ 1,205,433
See independent auditors' report and notes to financial statements.
24
Special
Debt
Capital
$ 3,979,034
-
Revenue
Service
Projects
Other
Total
RDA Housing
Redevelopment
Capital
Governmental
Governmental
Set -Aside
Agency
Improvements
Funds
Funds
-
$ 1,200,467
$ -
$ 7,268,453
$ 9,956,455
$ 33,443,480
2,624
10,494
-
31,621
931,990
1,982
9
4,861
13,219
38,592
6,344,139
-
-
738,333
7,082,472
-
-
270,349
197,723
1,092,419
-
-
2,681
-
241,294
-
-
-
-
46,648
1,086
540,561
-
18,502
1,373,591
-
-
-
1,774,203
19,368,878
7,550,298
551,064
7,546,344
12,730,056
S 63,619,364
$ 686,532
$ 647 $ 464,747
206,482
$ 3,979,034
-
211,956 -
29,338
241,294
318,546
- -
-
321,967
3,346,306
- -
746,168
15,651,060
1,774,203
17,594,675 -
-
19,368,878
-
- -
-
909,909
6,125,587
17,807,278 464,747
981,988
40,472,142
-
- -
1,000,000
1,000,000
1,086
540,561 -
18,502
1,373,591
-
- -
1,766,368
8,072,744
2,990,000
- -
-
2,990,000
-
- -
43,741
43,741
-
- -
-
46,648
- - - - 1,462,450
- - - 85,000 85,000
- - 6,939,260 554,675 7,493,935
- - - - 10,744,126
(1,566,375) - - 6,848,711 6,058,354
- (17,796,775) - - (17,796,775)
- - 142,337 1,097,848 1,240,185
- - - 333,223 333,223
1,424,711 (17,256,214) 7,081,597 11,748,068 23,147,222
$ 7,550,298 $ 551,064 $ 7,546,344 $ 12,730,056 $ 63,619,364
25
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r� - I
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
June 30, 2010
Fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Net Assets are different because:
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported in the governmental funds balance sheet.
Interest accrued on the advance receivable in the General Fund is not paid by the owing funds
and, therefore, is recorded as deferred revenue and added to the balance of the advance. The
Statement of Net Assets reports on the full accrual basis and does not defer currently unavailable
revenues.
Intergovernmental revenues earned, but not available, are deferred in the fund financial statements.
The revenue is not deferred on the Statement of Activities.
Interest expenditures are recognized when due, and therefore, interest payable is not recorded in
the governmental 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 Assets.
Net assets of governmental activities
See independent auditors' report and notes to financial statements.
27
$ 23,147,222
115,067,962
11,288,300
162,253
(20,417)
738,333
(6,680,786)
4,483,059
$ 148,185,926
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2010
See independent auditors' report and notes to financial statements.
28
Special
Revenue
Street
General
Maintenance
REVENUES:
Taxes
$ 17,962,533
$ -
Licenses and permits
1,953,825
-
Fines and forfeitures
178,949
Use of money and property
816,037
16,958
Charges for services
73,008
8,420
Revenue from other agencies
170,676
1,081,457
Other revenues
148,200
-
TOTAL REVENUES
21,303,228
1,106,835
EXPENDITURES:
Current:
Administration
5,090,575
-
Public safety
4,242,085
-
Public works
3,109,253
1,856,210
Parks and recreation
1,401,803
-
Community development
2,554,650
-
Non -departmental
320,000
-
Capital outlay
-
-
Debt service:
Principal
-
-
Interest and fiscal charges
-
-
TOTAL EXPENDITURES
16,718,366
1,856,210
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
4,584,862
(749,375)
OTHER FINANCING SOURCES (USES):
Transfers in
168,107
1,100,912
Transfers out
(3,467,201)
-
TOTAL OTHER FINANCING SOURCES (USES)
(3,299,094)
1,100,912
NET CHANGE IN FUND BALANCES
1,285,768
351,537
FUND BALANCES (DEFICIT) - BEGINNING OF YEAR
18,087,274
424,481
FUND BALANCES (DEFICIT) - END OF YEAR
$ 19,373,042
$ 776,018
See independent auditors' report and notes to financial statements.
28
Special
Debt
Capital
Revenue
Service
Projects
Other
Total
RDA Housing
Redevelopment
Capital
Governmental
Governmental
Set -Aside
Agency
Improvements
Funds
Funds
$ 215,652
$ 862,609
$ -
$ 803,159
$ 19,843,953
-
-
-
-
1,953,825
-
-
-
-
178,949
8,303
183
466,967
292,720
1,601,168
-
-
-
-
81,428
-
-
6,998,875
1,928,843
10,179,851
2,990,000
-
-
1,667,635
4,805,835
3,213,955
862,792
7,465,842
4,692,357
38,645,009
-
530,108
-
99,122
5,719,805
-
-
-
-
4,242,085
-
-
-
1,930,122
6,895,585
-
-
-
300,000
1,701,803
46,056
-
-
3,531
2,604,237
-
-
-
-
320,000
3,810,939
-
10,484,860
271,607
14,567,406
-
419,606
-
-
419,606
-
885,998
-
-
885,998
3,856,995
1,835,712
10,484,860
2,604,382
37,356,525
(643,040)
(972,920)
(3,019,018)
2,087,975
1,288,484
-
-
2,893,435
453,700
4,616,154
-
-
-
(2,724,454)
(6,191,655)
-
-
2,893,435
(2,270,754)
(1,575,501)
(643,040)
(972,920)
(125,583)
(182,779)
(287,017)
2,067,751
(16,283,294)
7,207,180
11,930,847
23,434,239
$ 1,424,711
$ (17,256,214)
$ 7,081,597
$ 11,748,068
$ 23,147,222
29
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2010
Net change in fiend balances - total governmental fiends $ (287,017)
Amounts reported for governmental activities in the Statement of Activities are different because
Governmental fiends 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, o
are allocated to the appropriate functional expense when the cost is below the capitalization threshold
Asset disposals are also not recognized in the governmental fiends. This activity reconciled as follows
Cost of assets capitalized 10,865,549
Depreciation expense (3,346,880)
Unpaid accrued interest income is deferred in the governmental fiends since it is not available. Thi:
income is accrued in the Statement of Activities, 620,873
Intergovernmental revenues earned, but not available are deferred in the fiend financial statements 87,869
Interest expenditures are recognized when due, and therefore, interest payable is not recorded in th
governmental fiends. This amount represents the net change in interest payable 408
Increases in long -terns notes receivable use current financial resources and are included in the expenditure
of governmental fiends. Repayments of long -terns notes receivables provide current financial resource
and are included in the revenues of governmental fiends. These changes in notes receivable are no
reflected in the revenues or expenses of the Statement of Activities. This amount represents the ne
change in the long -terns notes receivable (5,257)
Compensated absences expenses reported in the Statement of Activities do not require the use of curren
financial resources and therefore are not reported as expenditures in governmental fiends 20,757
Principal payments on debt are recorded as expenditures in the fiends. The expenditure is not recognize(
in the Statement of Activities since it reduces the liability reported on the Statement of Net Assets
Principal payments consisted of the following:
Redevelopment Agency tax increment bone 65,000
Redevelopment Agency deferred interest payabh 354,606
Internal service fiends are used by management to charge the costs of certain activities, including equipmen
and building replacement and employee benefits, to individual fiends. The net reveries/(expenses) of th
internal service fiends (excluding transfers and interest income) are reported with governmental activities (333,767)
Change in net assets of governmental activities $ 8,042,141
See independent auditors' report and notes to financial statements
30
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the year ended June 30, 2010
31
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Taxes
$ 15,992,975
$ 17,916,975
$ 17,962,533
$ 45,558
Licenses and permits
2,007,100
1,992,100
1,953,825
(38,275)
Fines and forfeitures
246,500
218,500
178,949
(39,551)
Use of money and property
860,900
691,900
816,037
124,137
Charges for services
58,900
58,900
73,008
14,108
Revenue from other agencies
320,471
202,972
170,676
(32,296)
Other revenues
148,200
148,200
148,200
-
TOTAL REVENUES
19,635,046
21,229,547
21,303,228
73,681
EXPENDITURES:
General Govememeni
City council
97,378
106,768
105,935
833
City manager
1,492,856
1,544,156
1,375,577
168,579
City attorney
1,165,000
1,075,000
1,048,721
26,279
Community outreach
100,650
89,650
85,961
3,689
City clerk
372,463
387,463
379,289
8,174
Personnel
206,583
211,583
206,212
5,371
Finance
1,242,180
1,272,180
1,269,290
2,890
Information technology - Data
638,340
568,340
545,915
22,425
Information technology - Voice
81,705
81,705
73,675
8,030
Total General Government
5,397,155
5,336,845
5,090,575
246,270
Public safety
Sheriff
3,995,750
3,995,750
3,939,997
55,753
Special programs
56,000
42,000
38,294
3,706
Animal control
125,250
125,250
92,529
32,721
Emergency preparedness
114,177
172,177
171,265
912
Total Public Safety
4,291,177
4,335,177
4,242,085
93,092
Public Works
Public works administration
1,886,021
1,711,021
1,658,617
52,404
Traffic management
407,000
220,600
209,778
10,822
Storm water quality
173,900
221,900
122,283
99,617
Building maintenance
528,200
572,200
447,825
124,375
Park/Trail/Open Space maintenance
1,184,893
899,893
613,556
286,337
Sewer maintenance
60,300
131,300
57,194
74,106
Total Public Works
4,240,314
3,756,914
3,109,253
647,661
31
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (continued)
GENERAL FUND
For the year ended June 30, 2010
Parks and Recreation
Recreation adininistration
Recreation facilities
Special events
PVIC
REACH
Total Parks and Recreation
Community Development
Planning services
Building & safety
Code enforcement
View restoration/preservatioE
NCCP
Geology
Total Community Development
Non -Departmental
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER)EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
320,000 (320,000)
17,941,846 17,645,512 16,718,366 927,146
1,693,200 3,584,035 4,584,862 1,000,827
292,648 292,648 168,107 (124,541)
(1,773,500) (3,531,625) (3,467,201) 64,424
(1,480,852) (3,238,977) (3,299,094) (60,117)
212,348 345,058 1,285,768 940,710
18,087,274 18,087,274 18,087,274
$ 18,299,622 $ 18,432,332 $ 19,373,042 $ 940,710
See independent auditors' report and notes to financial statements
32
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
605,756
639,756
593,127
46,629
402,296
430,296
419,836
10,460
40,904
40,904
25,787
15,117
330,331
335,331
294,565
40,766
74,672
74,672
68,488
6,184
1,453,959
1,520,959
1,401,803
119,156
1,245,118
1,310,944
1,320,867
(9,923)
591,177
646,177
611,145
35,032
201,658
201,658
179,496
22,162
321,288
326,288
324,139
2,149
-
10,550
10,550
-
200,000
200,000
108,453
91,547
7rrQ7d1
7for f]7
7iiaF.in
IAt) Qf.7
320,000 (320,000)
17,941,846 17,645,512 16,718,366 927,146
1,693,200 3,584,035 4,584,862 1,000,827
292,648 292,648 168,107 (124,541)
(1,773,500) (3,531,625) (3,467,201) 64,424
(1,480,852) (3,238,977) (3,299,094) (60,117)
212,348 345,058 1,285,768 940,710
18,087,274 18,087,274 18,087,274
$ 18,299,622 $ 18,432,332 $ 19,373,042 $ 940,710
See independent auditors' report and notes to financial statements
32
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, 2010
REVENUES:
Use of money and property
Charges for services
Revenue from other agencies
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:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report and notes to financial statements.
33
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 8,500
$ 8,500
$ 16,958
$ 8,458
4,100
4,100
8,420
4,320
1,173,288
1,078,788
1,081,457
2,669
1,185,888
1,091,388
1,106,835
15,447
1,506,674
1,631,674
1,228,618
403,056
84,000
84,000
72,824
11,176
277,000
556,000
554,768
1,232
1,867,674
2,271,674
1,856,210
415,464
(681,786)
(1,180,286)
(749,375)
430,911
811,000
1,033,000
1,100,912
67,912
129,214
(147,286)
351,537
498,823
424,481
424,481
424,481
-
$ 553,695
$ 277,195
$ 776,018
$ 498,823
See independent auditors' report and notes to financial statements.
33
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY HOUSING SET-ASIDE SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Taxes
Use of money and property
Proceeds of sale of land
TOTAL REVENUES
EXPENDITURES:
Community Development
Redevelopment
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report and notes to financial statements.
34
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 205,200
$ 211,700
$ 215,652
$ 3,952
10,600
10,600
8,303
(2,297)
-
-
2,990,000
2,990,000
215,800
222,300
3,213,955
2,991,655
12,500
12,500
46,056
(33,556)
907,000
3,587,496
3,810,939
(223,443)
919,500
3,599,996
3,856,995
(256,999)
(703,700)
(3,377,696)
(643,040)
2,734,656
-
1,766,368
-
(1,766,368)
(703,700)
(1,611,328)
(643,040)
968,288
2,067,751
2,067,751
2,067,751
-
$ 1,364,051
$ 456,423
$ 1,424,711
$ 968,288
See independent auditors' report and notes to financial statements.
34
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2010
ASSETS
CURRENT ASSETS:
Cash and investments
Receivables:
Interest
Other
Prepaid items
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
Capital assets, not being depreciated:
Land
Construction in progress
Capital assets, being depreciated:
Property and equipment
Infrastructure
Accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities
Retentions payable
TOTAL CURRENT LIABILITIES
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
See independent auditors' report and notes to financial statements.
35
Business -type
Governmental
Activity-
Activities -
Water Quality
Internal
Flood Protection
Service
Enterprise Fund
Funds
$ 2,908,666 $ 4,263,578
3,206 4,607
30,313 -
- 121,867
2,942,185 4,390,052
1,408,493
-
149,081
-
11,813
1,401,374
11,338,573
-
(449,655)
(1,138,027)
12,458,305
263,347
15,400,490
4,653,399
57,761 170,340
59,803 -
117,564 170,340
12,458,305 263,347
2,824,621 4,219,712
$ 15,282,926 $ 4,483,059
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS - PROPRIETARY FUNDS
For the year ended June 30, 2010
OPERATING REVENUES:
Charges for services
OPERATING EXPENSES:
Personnel services
Materials and supplies
Maintenance
Depreciation
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES:
Other revenues
Interest income
Storm drain user fees
TOTAL NONOPERATING REVENUES
Transfer in
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING OF YEAR
TOTAL NET ASSETS - END OF YEAR
See independent auditors' report and notes to financial statements.
36
Business -type Governmental
Activity-
Activities -
Water Quality
Internal
Flood Protection
Service
Enterprise Fund
Funds
-
$ 2,196,372
132,040
100,265
112,008
235,536
579,849
3,548,913
118,999
347,315
119,385
(579,849) (1,938,240)
-
6,806
14,175
22,166
1,263,572
-
1,277,747
28,972
-
1,575,501
697,898
(333,767)
14,585,028
4,816,826
$ 15,282,926
$ 4,483,059
CITY OF RANCHO PALOS VERDES
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services provided
Payments to suppliers
Payments to employees
NET CASH USED BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Receipts from storm drain user fees
Receipts from other funds
NET CASH PROVIDED FROM NON -CAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments
NET DECREASE
IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS - END OF YEAR
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss
to net cash used by operating activities:
Depreciation
Changes in operating assets and liabilities:
Decrease in prepaid items
Increase in accrued liabilities
NET CASH USED BY OPERATING ACTIVITIES
See independent auditors' report and notes to financial statements.
37
Business -type Governmental
Activity-
Activities -
Water Quality
Internal
Flood Protection
Service
Enterprise Fund
Funds
$ -
S 2,196,372
(212,273)
(462,594)
(132,040) (3,089,019)
(344,313) (1,355,241)
(2,277,338) (64,955)
1,255,190 -
I nnn fro
1,255,190 1,240,168
22,658 29,205
(1,343,803) (150,823)
4,252,469 4,414,401
$ 2,908,666 $ 4,263,578
S (579,849) S (1,938,240)
235,536 119,385
408,641
54,973
$ (344,313) $ (1,355,241)
.► PF
Ip
ell
"f
Ladera Linda Park Playground
38
NOTES TO FINANCIAL STATEMENTS
39
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Rancho Palos Verdes (the City) conform to
accounting principles generally accepted in the United States of America as
applicable to governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for governmental accounting and
financial reporting principles. The following is a summary of the significant
policies.
A. Reporting Entity
The reporting entity, "City of Rancho Palos Verdes", includes the accounts of the
City, the Rancho Palos Verdes Redevelopment Agency (the RDA), and the Joint
Powers Improvement Authority (the Authority).
The City was incorporated on September 7, 1973, as a General Law City and
operates under a Council/Manager form of government.
The RDA was formed in 1984 pursuant to the State of California Health and
Safety Code Section 33000 entitled "Community Redevelopment Law". Its
purpose is to finance long-term capital improvements designed to eliminate
physical and economic blight in a project area through stabilization of hazardous
landslides.
The Authority was formed on September 4, 1990, in accordance with the
provisions of the Reimbursement and Settlement Agreement, dated October 27,
1987, entered into by the City, the RDA, and the County of Los Angeles (the
County) in connection with the Horan Lawsuit. The Agreement requires funds to
be set aside and expended by the Authority to maintain landslide abatement
improvements installed and constructed by the RDA.
The criteria used in determining the scope of the reporting entity are based on
the provisions of GASB Statement 14. The City of Rancho Palos Verdes is the
primary government unit. Component units are those entities which are
financially accountable to the primary government, either because the City
appoints a voting majority of the component unit's Board, or because the
component unit will provide a financial benefit or impose a financial burden on
the City. The City has accounted for both the RDA and the Authority as "blended"
component units. Despite being legally separate entities, the RDA and the
Authority are so intertwined with the City, they are, in substance, part of the City's
operations.
See independent auditors' report.
40
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accordingly, the balances and transactions of the RDA are reported as separate
Special Revenue, Debt Service, and Capital Projects Funds. The balances and
transactions of the Authority are reported as separate Permanent and Special
Revenue Funds. The following specific criteria were used in determining that the
RDA and the Authority are "blended" component units:
1) The members of the City Council also act as the governing body of both the
RDA and the Authority.
2) The City, the RDA and the Authority are financially interdependent. The City
subsidizes maintenance operations performed by the Authority. The City makes
loans to the RDA for use on redevelopment projects. Available property tax
revenues of the RDA will be used to repay the loans from the City. It is not
anticipated that tax increment revenues will be available to repay the loans any
time in the immediate future.
3) Employees of the City manage both the RDA and the Authority.
Separately issued financial statements for both the RDA and the Authority may
be obtained at the City's administrative offices.
Participation in Public Entity Joint Powers Authority
The City is a member of the Palos Verdes Peninsula Transit Joint Powers
Authority (the Transit Authority). The Transit Authority is comprised of four
member cities and is organized under a Joint Powers Agreement pursuant to the
California Government Code. The purpose of the Authority is to study,
implement, and provide a public transit system within and around the Palos
Verdes Peninsula. These transit services include Palos Verdes Transit, Dial -A -
Ride, and a fixed route shuttle service. Periodic deposits are paid by member
Cities and are adjusted retrospectively to cover costs. Costs are prorated among
all participating Cities based on population.
The City does not have an equity interest in the Transit Authority; therefore, no
amount has been reported in the Statement of Net Assets. However, the City
does have an ongoing financial interest, because the City is able to influence the
operations of the Authority so that the Authority uses its resources on behalf of
the City. Also, an ongoing financial responsibility exists because the Authority is
dependent on continued funding from the City. The condensed financial
information of the Authority has not been reproduced in this report, but is
available upon request from the Authority by emailing
See independent auditors' report.
41
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
pvtransit(a-)-palosverdes.com or mailing a request to P.O. Box 2656, Palos Verdes
Peninsula, CA 90274.
B. Accounting and Reporting Policies
The City has conformed to the pronouncements of the Governmental Accounting
Standards Board (GASB), which are the primary authoritative statements of
accounting principles generally accepted in the United States of America
applicable to State and Local governments. In both the government -wide and
proprietary fund financial statements, the City applies all applicable Financial
Accounting Standards Board (FASB) pronouncements, as well as those of its
predecessors, issued on or before November 30, 1989, unless any such
pronouncements contradict GASB pronouncements.
C. Description of Funds
The accounts of the City are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self -balancing accounts that comprise its
assets, liabilities, fund equity, revenues, and expenditures. The following are
types of funds used:
Governmental Fund Types
• General Fund — Used to account for all financial resources except those that
are required to be accounted for in another fund.
• Special Revenue Funds — Used to account for the proceeds of specific revenue
sources that are restricted by law or administrative action for specified purposes.
• Debt Service Fund — The debt service fund of the RDA is used to account for
property tax increment revenue and related interest income. Disbursements from
this fund consist mainly of principal and interest on RDA indebtedness.
• Capital Projects Funds — Used to account for financial resources used for the
construction of specific capital projects.
• Permanent Fund — Used to account for resources legally restricted to the extent
that only earnings, and not principal, may be used for purposes that support the
reporting government's programs.
See independent auditors' report.
42
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Proprietary Fund Types
• Enterprise Funds — Used to finance and account for the acquisition, operation,
and maintenance of the City's facilities and services; which are supported
primarily by user charges.
• Internal Service Funds — Used to account for employee benefits costs and
purchases and maintenance of equipment on behalf of all City departments, as
well as the accumulation of funds for replacement of certain buildings on behalf
of the City.
D. Basis of Accounting/Measurement Focus
Government — Wide Financial Statements
The City's Government -Wide Financial Statements include a "Statement of Net
Assets" and a "Statement of Activities". These two statements present
summaries of Governmental Activities for the City.
These statements are presented on an "economic resources" measurement
focus and the accrual basis of accounting. Accordingly, all of the City's assets
and liabilities, including capital assets, infrastructure, and long-term debt, are
included in the accompanying Statement of Net Assets. The Statement of
Activities presents changes in net assets. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned, while expenses
are recognized in the period in which the liability is incurred. The Statement of
Activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function. Program revenue transactions for the
City are reported in three categories: 1) Charges for Services, 2) Operating
Grants and Contributions, and 3) Capital Grants and Contributions. Charges for
Services include revenues from customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function.
Operating Grants and Contributions include revenues restricted to meeting the
requirements of a particular operating function and may include state shared
revenues and grants. Capital Grants and Contributions include revenues
restricted to meeting the requirements of a particular capital function and may
include grants and developer fees. Taxes and other items not properly included
among program revenues are reported instead as general revenues. As a
general rule, the effect of interfund activity has been eliminated from the
Government -Wide Financial Statements.
See independent auditors' report.
43
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Governmental Fund Financial Statements
Governmental fund financial statements include a "Balance Sheet —
Governmental Funds" and "Statement of Revenues, Expenditures, and Changes
in Fund Balances — Governmental Funds" for all major and other governmental
funds. An accompanying schedule is presented to reconcile and explain the
differences in fund balances as presented in these statements to the Net Assets
presented in the Government -Wide Financial Statements. The City has
presented all major funds that met qualifications of GASB Statement No. 34. In
addition, the City has presented the Street Maintenance Special Revenue Fund
as a major fund because the City believes the financial position and activities of
this fund are significant to the City as a whole.
All governmental funds are accounted for on a spending or "current financial
resources" measurement focus and the modified accrual basis of accounting.
Accordingly, only current assets and current liabilities are included on the
Balance Sheets. The Statement of Revenues, Expenditures and Changes in
Fund Balances present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in fund balances. Revenues
are recognized in the accounting period in which they become susceptible to
accrual, that is, when they become both measurable and available to finance
expenditures of the current period. "Measurable" means that the amount of the
transaction can be determined, and "available" means collectible within the
current period or soon enough thereafter to be used to pay liabilities of the
current period. Accrued revenues include property taxes received within 60 days
after year-end, taxpayer -assessed taxes such as sales taxes, and earnings on
investments. Grant funds earned but not received are recorded as a receivable,
and grant funds received before the revenue recognition criteria have been met
are reported as deferred revenues. Expenditures are recorded when the fund
liability is incurred, if measurable, except for immature interest on general long-
term debt, which is recognized when due.
The City reports the following major governmental funds
The General Fund is the City's primary operating fund. It accounts for all financial
resources of the City, except those that are required to be accounted for in
another fund.
The Street Maintenance Special Revenue Fund is used to account for state -
shared highway users tax used for street maintenance, right-of-way acquisition
and street construction.
See independent auditors' report.
44
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Redevelopment Agency Housing Set -Aside Special Revenue Fund is used
to account for the portion of Redevelopment tax increment monies which is a
requirement under California Redevelopment Law, Section 33334, to be set-
aside for the development of low and moderate income housing.
The RDA Debt Service Fund is used to account for the accumulation of
resources and for the payment of principal and interest on the Redevelopment
Agency's debt.
The Capital Improvement Capital Projects Fund is used to account for funds
used for the City's capital improvement projects.
Proprietary Fund Financial Statements
Proprietary fund types are accounted for using the "economic resources"
measurement focus and accrual basis of accounting. This means that all assets
and liabilities (whether current or non-current) associated with the activity are
included on the balance sheet. Fund equity is presented as total net assets. The
operating statement of proprietary funds presents increases (revenues) and
decreases (expenses) in total net assets. Revenues are recognized when they
are earned and expenses are recognized when the liability is incurred.
Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenues
of the City's enterprise and internal service funds are charges for services.
Operating expenses for the enterprise and internal service funds include the
costs of services, employee benefits, maintenance of capital assets, and
depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
The City uses the internal service funds to finance and account for goods and
services provided by one City department to other City departments, including
the purchase and maintenance of equipment, replacement of buildings and
payment of employee benefits. The City's internal service funds are presented in
the proprietary funds financial statements. Because the principal users of the
internal services are the City's governmental activities, the financial statements of
the internal service funds are consolidated into the governmental column when
presented in the government -wide financial statements. To the extent possible,
See independent auditors' report.
45
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
E. Budgetary Accounting
Annual budgets are adopted on a basis consistent with accounting principles
generally accepted in the United States of America for all governmental funds. All
annual appropriations lapse at fiscal year-end. Budget control is maintained over
all accounts, and expenditures are not allowed to exceed appropriations at the
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 the Permanent fund. These
adjustments resulted in a net appropriation increase in the amount of
$13,294,328. This increase resulted primarily for the purchase of upper Filiorum
open space.
Under Article XIIIB of the California Constitution (the Gann Spending Limitation
Initiative), the City is restricted as to the amount of annual appropriations from
the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations,
the excess must either be refunded to the State Controller, returned to the
taxpayers through revised tax rates or revised fee schedules, or an excess in one
year may be offset against a deficit in the following year. For the fiscal year
ended June 30, 2010, based on calculations by City Management, proceeds of
taxes did not exceed related appropriations.
F. Advances to Other Funds
Long-term inter -fund advances are recorded as a receivable in the advancing
governmental fund and as a liability in the fund receiving the advance. Accrued
unpaid interest, for which there is no immediately available resources to pay, is
deferred in the advancing governmental fund and the principal portion of the
advance is reported as a reservation of fund balance.
G. Capital Assets
Capital assets include land, machinery and equipment (vehicles, computers,
See independent auditors' report.
46
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
etc.), buildings and improvements, and infrastructure assets (street systems,
storm drains, sewer systems, etc.); and are reported in Governmental Activities
column of the Government -Wide Financial Statements. Capital assets are
defined by the City as all land and buildings, vehicles, computers and equipment
with an initial individual cost of more than $5,000; and improvements and
infrastructure assets with costs of more than $100,000. Such assets are
recorded at historical cost or estimated historical cost if purchased or
constructed. Donated or annexed capital assets are recorded at estimated
market value at the date of donation or annexation.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized. Depreciation is
recorded in the Government -Wide Financial Statements on a straight-line basis
over the useful life of the assets as follows:
Buildings and Improvements 25 to 50 years
Vehicles, Computers, and Equipment 3 to 10 years
Infrastructure Assets
Roadway Network 10 to 100 years
Sewer Network 25 to 50 years
Storm Drain Network 30 to 100 years
Parks and Recreation Network 25 years
H. Employee Compensated Absences
City employees may receive from 10 to 20 days vacation time each year,
depending upon length of service. An employee may accumulate earned
vacation time up to a maximum of two years' worth of accrued vacation leave.
Upon termination, employees are paid the full value of their unused vacation time
at their existing salary. There is no fixed payment schedule for employee
compensated absences.
At June 30, 2010, vested accrued vacation and compensatory time amounted to
$294,483. The General Fund will primarily be used to liquidate the liability for
compensated absences in future years.
I. Investments
Investments are stated at fair value (quoted market price of the best available
estimate, thereof), except for the City's investments in U.S. Treasury Securities
See independent auditors' report.
47
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
which are reported at cost since they have short-term maturities and the City
intends to hold them to maturity.
J. 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. The City has no non-
cash investing, capital, or financing activities to be reported on the statement of
cash flows.
K. Claims and Judgments
When it is probable that a claim liability has been incurred, and the amount of the
loss can be reasonably estimated, the City records the estimated loss, net of any
insurance coverage under its self-insurance program. Small claims and
judgments are recorded as expenditures when paid.
The City's self-insurance program is administered through the California Joint
Powers Authority (the CJPIA), which is described at Note #8. The CJPIA is a
public entity risk pool, which is accounted for under the provisions of GASB
Statement 10. Claim losses recorded in the CJPIA include both current claims
and "Incurred but Not Reported" (IBNR) claims. The City records amounts
deposited with CJPIA as insurance expenditures in the General Fund when paid.
These deposits are subject to retrospective adjustment. Favorable claims
experience result in a refund of deposits from the CJPIA and such refunds, if any,
are recorded as a reduction of insurance expenditures in the year received.
Adverse claims experience result in the payment of additional deposits and such
deposits, if any, are recorded as insurance expenditures when paid.
L. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items using the consumption method. In
governmental funds, the prepaid assets recorded do not reflect current
appropriable resources and thus, an equivalent portion of fund balance is
reserved. The City had a total of $1,495,458 ($1,373,591 in governmental funds
and $121,867 in internal service funds) of prepaid items as of June 30, 2010.
See independent auditors' report.
48
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
KA Fctimatac
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to
make estimates and assumptions that effect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
N. Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the
City's policy to use restricted resources first, and then unrestricted resources as
they are needed.
NOTE #2 — CASH AND INVESTMENTS
Cash and investments as of June 30, 2010, are classified in the accompanying
financial statements as follows-
Government -
Wide
Statement of
Net Assets
Total cash and investments $ 40,615,724
Cash and investments as of June 30, 2010 consist of the following:
Petty Cash $ 2,500
Deposits with Financial Institutions 2,699,972
Investments 37,913,252
Total cash and investments 40.615.724
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,
See independent auditors' report.
49
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #2 — CASH AND INVESTMENTS (continued)
where more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely
affect the fair value of an investment. Generally, the longer the maturity of an
investment, there is a greater sensitivity of its fair value to changes in market
interest rates. The City manages its exposure to interest rate risk by purchasing a
combination of U.S. Treasury securities and investing with the Local Agency
Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity
need for operations. The City's investment is represented by shares in the pool,
which can be withdrawn in one business day. The average maturity of the pool is
less than one year.
Remaining
Maximum
Maturity
(in Months)
Amount or
Maximum
Investment Type
Maximum
Percent of
in One
Authorized Investment Type
Maturity
Portfolio
Issuer
U.S. Treasury Obligations
3 years
None
None
Negotiable Certificates of Deposit
5 years
30%
None
Repurchase Agreements
7 days
15%
None
Money Market Mutual Funds
N/A
15%
15%
Local Agency Investment Fund (LAIF)
N/A
None
None
Money Market Savings/Demand Deposits
N/A
$5 million
15%
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely
affect the fair value of an investment. Generally, the longer the maturity of an
investment, there is a greater sensitivity of its fair value to changes in market
interest rates. The City manages its exposure to interest rate risk by purchasing a
combination of U.S. Treasury securities and investing with the Local Agency
Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity
need for operations. The City's investment is represented by shares in the pool,
which can be withdrawn in one business day. The average maturity of the pool is
less than one year.
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
See independent auditors' report.
50
Remaining
Maturity
(in Months)
12 Months
Investment Type
or Less
State Investment
Pool
$ 33,247,252
U.S. Treasury
Securities
4,666,000
$ 37,913,252
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
See independent auditors' report.
50
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #2 — CASH AND INVESTMENTS (continued)
investment is not rated; and U.S. Treasury Securities are exempt from
disclosure.
Concentration of Credit Risk
The investment policy of the City of Rancho Palos Verdes contains no limitations
on the amount that can be invested in any one issuer beyond that stipulated by
the California Government Code. As of June 30, 2010, the City's investments in
LAIF and U.S. Treasury Securities were exempt from concentration of credit risk
disclosure.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its
deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the
risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, a government will not be able to recover the value of its investment
or collateral securities that are in the possession of another party. The California
Government Code and the City of Rancho Palos Verdes' investment policy do
not contain legal or policy requirements that would limit the exposure to custodial
credit risk for deposits or investments, other than the following provision for
deposits: The California Government Code requires that a financial institution
secure deposits made by state or local governmental units by pledging securities
in an undivided collateral pool held by a depository regulated under state law
(unless so waived by the governmental unit). The market value of the pledged
securities in the collateral pool must equal at least 110 percent of the total
amount deposited by the public agencies. California law also allows financial
institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150 percent of the secured public deposits.
The amount of the City of Rancho Palos Verdes' deposits with financial
institutions in excess of federal depository insurance limits that was held in
collateralized accounts where the collateral is not held specifically in the name of
the City, as described above, was $2,452,184 at June 30, 2010.
Investment in State Investment Pool
The City of Rancho Palos Verdes is a voluntary participant in LAIF that is
regulated by California Government Code Section 16429 under the oversight of
See independent auditors' report.
51
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #2 — CASH AND INVESTMENTS (continued)
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. The City is a voluntary participant in the investment pool.
NOTE #3 — INTERFUND TRANSACTIONS
Inter -fund balances consisted of the following at June 30, 2010:
General fund cash was used to cover grant expenditures in the other
Governmental Funds (CDBG and Measure A Funds) until reimbursement is
received from the grant agencies. General fund cash was also used to pay the
Redevelopment Agency's FY09-10 Supplemental Educational Revenue
Augmentation Fund contribution required by the State. Capital Improvement
Projects Fund cash was used to cover TDA Article 3 expenditures in the
Bikeways Fund that are expected to be reimbursed during FY10-11.
Inter -fund Advances
The General Fund and Affordable Housing Capital Projects Fund have advanced
the Redevelopment Agency amounts as described below:
See independent auditors' report.
52
Due To
Capital
Improvement
General
Capital Project
Fund
Funds
Totals
Redevelopment Agency Debt
o
UL Service Fund $ 211,956
$ -
$ 211,956
a) Other Governmental Funds 26,657
2,681
29,338
o Totals: $ 238,613
$ 2,681
$ 241,294
General fund cash was used to cover grant expenditures in the other
Governmental Funds (CDBG and Measure A Funds) until reimbursement is
received from the grant agencies. General fund cash was also used to pay the
Redevelopment Agency's FY09-10 Supplemental Educational Revenue
Augmentation Fund contribution required by the State. Capital Improvement
Projects Fund cash was used to cover TDA Article 3 expenditures in the
Bikeways Fund that are expected to be reimbursed during FY10-11.
Inter -fund Advances
The General Fund and Affordable Housing Capital Projects Fund have advanced
the Redevelopment Agency amounts as described below:
See independent auditors' report.
52
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #3 — INTERFUND TRANSACTIONS (continued)
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
Advances to the Redevelopment Agency $ 16,886,970 $ 2,481,908 $ - $ 19,368,878
The City has entered into an agreement to provide the RDA operating funds and
staff assistance, supplies, technical and other services and facilities of the City as
the RDA requires in carrying out its function under the community redevelopment
law. The RDA will repay the resulting indebtedness, plus interest, from
incremental property tax revenues arising from the project area, as such revenue
becomes available. As of June 30, 2010, no revenue was available to the RDA to
repay the advances due to the City, nor is sufficient revenue expected to be
available to repay advances in the immediate future. Variable interest was
accrued at a rate of 3.658 percent during the fiscal year ended June 30, 2010. Of
the $17,594,675 advance, $13,561,525 relates to the Portuguese Bend portion of
the RDA, while $4,033,149 relates to the Abalone Cove portion. During the year
ended June 30, 2010, accrued interest of $478,553 was added to the balance of
the advance to the Portuguese Bend Fund, while principal of $86,831 and
accrued interest of $142,320 was advanced to the Abalone Cove Fund. No
interest has ever been paid by the RDA on these advances; therefore, the
interest component of the advance has been recorded as deferred revenue in the
General Fund of the City.
In connection with the development of the senior affordable housing project, the
City agreed to advance funds to the Redevelopment Agency for use in providing
financial assistance to the developer in the form of a construction loan. The
balance of these advances at June 30, 2010 was $1,774,203.
Inter -fund Transfers
Inter -fund transfers for the year ended June 30, 2010, consisted of the following:
See independent auditors' report.
53
Transfer From
Other
General
Governmental
Fund
Funds
Totals
General Fund
$ -
$ 168,107
$ 168,107
0
Street Maintenance
22,000
1,078,912
1,100,912
a�
Capital Improvement Projects
1,416,000
1,477,435
2,893,435
Other Governmental Funds
453,700
-
453,700
Internal Service Funds
1,575,501
-
1,575,501
Totals:
$ 3,467,201
$ 2,724,454
$ 6,191,655
See independent auditors' report.
53
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #3 — INTERFUND TRANSACTIONS (continued)
Transfers are used to: 1) move revenues from the fund that statute or budget
requires for collection to the fund that statute or budget requires for expenditure;
and 2) use unrestricted revenues collected in the General Fund to finance
various programs accounted for in other funds in accordance with budgetary
authorizations or grant matching requirements.
NOTE #4 — CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital
assets including infrastructure in the Government -Wide Statement of Net Assets.
The City elected to use the basic reporting approach as defined by GASB
Statement No. 34 for all infrastructures, whereby depreciation expense and
accumulated depreciation has been recorded. The following tables present the
capital assets activity for the year ended June 30, 2010.
Governmental Activities
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Building and improvements
Vehicles
Computer equipment
Furniture, fixtures and equipment
Infrastructure
Roadway system
Sewer system
Storm drain system
Parks system
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and improvements
Vehicles
Computer equipment
Furniture, fixtures and equipment
Infrastructure
Roadway system
Sewer system
Storm drain system
Parks system
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
Beginning Ending
Balance Increases Decreases Balance
$ 32,139,008 $ 6,669,545 $ 38,808,553
196,174 2,684,926 $ (2,814,810) 66,290
32,335,182 9,354,471 (2,814,810) 38,874,843
9,559,574 252,059
9,811,633
299,229
(9,775) 289,454
534,442 64,955
599,397
512,517
512,517
82,674,783 3,875,452
86,550,235
25,755,463
25,755,463
13,148,416
13,148,416
6,283,651 198,377
6,482,028
138,768,075 4,390,843
(9,775) 143,149,143
(1,834,187)
(220,454)
(2,054,641)
(157,342)
(48,945)
9,775 (196,512)
(505,633)
(31,226)
(536,859)
(365,436)
(39,214)
(404,650)
(37,190,459)
(2,296,441)
(39,486,900)
(16,397,770)
(455,109)
(16,852,879)
(2,466,517)
(250,479)
(2,716,996)
(4,318,843)
(124,397)
(4,443,240)
(63,236,187)
(3,466,265)
9,775 (66,692,677)
See independent auditors' report.
75,531,888 924,578 76,456,466
$ 107,867,070 $ 10,279,049 $ (2,814,810) $ 115,331,309
54
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #4 — CAPITAL ASSETS AND DEPRECIATION (continued)
Depreciation expense was charged to functions/programs of the primary
government as follows:
Administration $ 220,454
Public Works (including depreciation of general infrastructure
assets) 3,002,029
Recreation Services 124,397
Capital assets held by the City's internal service funds are charged
to the various functions based on their usage of the assets 119,385
Total Depreciation Expense — Governmental Activities $3,466,265
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
Beginning Ending
Balance Increases Decreases Balance
$ 1,408,493 $ 1,408,493
7,419,621 $ 217,177 $(7,487,717) 149,081
8,828,114 217,177 (7,487,717) 1,557,574
11,813 11,813
3,850,856 7,487,717 11,338,573
3,862,669 7,487,717 - 11,350,386
Equipment
(5,907)
(2,363)
(8,270)
Storm drain system
(208,212)
(233,173)
(441,385)
Total accumulated depreciation
(214,119)
(235,536)
- (449,655)
$ - $ (65,000)
$ 5,250,000
Total capital assets being depreciated, net
3,648,550
7,252,181
- 10,900,731
Business -type activities capital assets, net $ 12,476,664 $ 7,469,358 $(7,487,717) $ 12,458,305
Depreciation expense of $235,536 is included in the Water Quality Flood
Protection enterprise fund.
NOTE #5 — LONG-TERM DEBT
See independent auditors' report.
55
Balance
Balance
Amount Due
July 1, 2009
Additions Deletions
June 30, 2010
in One Year
RDA Tax Increment Bond
$ 5,315,000
$ - $ (65,000)
$ 5,250,000
$ 85,000
RDA Deferred Interest Payable
1,490,909
- (354,606)
1,136,303
-
Employee Compensated Absences
315,240
228,055 (248,812)
294,483
232,429
Totals
$7,121,149
$228,055 $(668,418)
$ 6,680,786
$ 317,429
See independent auditors' report.
55
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #5 — LONG-TERM DEBT (continued)
A. RDA Tax Increment Bond and Deferred Interest Payable
In July 1991, the RDA received $10,000,000 in loan proceeds (the Loan) from
the County of Los Angeles (the County) upon the County's issue of Abalone
Cove Improvement Bonds 2651-M pursuant to a Reimbursement and Settlement
Agreement (the Agreement), dated October 27, 1987 in connection with the
Horan Lawsuit. The Loan was made for the purpose of abating the Abalone
Cove landslide. The settlement Loan was secured by property assessment liens
in the Abalone Cove project area.
As stipulated by the parties to the Agreement, a portion of the Loan proceeds
was used to repay a tax allocation and revenue anticipation promissory note
issued to the County in the principal amount of $1,450,000, plus accrued interest
equal to $179,244. A second portion of the proceeds was used to repay
expenses advanced by the County in the amount of $135,614. A third portion
was used to repay certain loans from the City to the RDA in the amount of
$787,340.
Per the terms of the Agreement, $1,000,000 of the proceeds was deposited in
the Abalone Cove Permanent Fund of the Joint Powers Improvement Authority.
The remainder of the proceeds was accounted for in the RDA's Abalone Cove
Fund. Concurrent with the execution of the Agreement, the County deeded its
title in the Abalone Cove Beach Park to the RDA.
As part of the Agreement, the RDA is required to transfer 17 percent of tax
increment revenue to the Consolidated Fire Protection District of the County and
50.9 percent of tax increment revenue for debt repayment to the County. In
accordance with the Agreement, the RDA was to pay the Loan principal plus
interest at 7.7654 percent over a 30 -year period that began in 1992. However,
these debt payments were to be deferred 10 years until the fiscal year ended
June 30, 2002.
As part of the deferral arrangement, the accrued interest from the inception of the
Loan through June 30, 2002, in the amount of $7,314,944, was scheduled for
payment over a 20 -year period beginning in the fiscal year ended June 30, 2002
with no additional interest. The remaining balance of $10,274,119 was scheduled
for payment to the County over a 20 -year period beginning in the fiscal year
ended June 30, 2002, with interest at 7.7654 percent.
See independent auditors' report.
56
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #5 — LONG-TERM DEBT (continued)
On November 1, 1997, the City, the RDA and the County of Los Angeles entered
into a Memorandum of Understanding (MOU) agreeing to restructure the
repayment schedule of the debt owed to the County by the RDA. In accordance
with the terms of the MOU, the $10,000,000 loan principal owed to the County
was cancelled. As consideration for the loan cancellation, the RDA made a lump
sum payment to the County in the amount of $4,545,000 and issued a
$5,455,000 tax increment bond to the County (the RDA bond). Of the $4,545,000
lump sum payment, $2,000,000 was paid from tax increment revenue and
interest earnings accumulated in the Debt Service Fund. The remaining
$2,545,000 was funded by a combination of a loan from the General Fund of the
City to the Agency for $1,545,000 and a net operating transfer from the Agency's
Abalone Cove Capital Projects Fund to the Debt Service Fund of $1,000,000.
The private property liens resulting from the formation of the bond assessment
district in connection with the Reimbursement and Settlement Agreement in 1987
were discharged in accordance with the terms of the MOU.
The RDA bond was issued as a conduit through the Improvement Authority to the
County. No issuance costs were incurred. One hundred percent of net future tax
increment revenue will fund the payment of the RDA bond debt and the deferred
interest from the original Loan until paid in full. In December 1997, the County
began withholding payment of the Agency's net tax increment revenue (net of the
17 percent payment to the County Fire Protection District and the 20 percent
housing set-aside amount) to offset the annual principal and interest charges.
The principal of the RDA bond began maturing in installments each December
2nd, commencing December 2, 2004. Interest accrues at a rate of 5 percent per
annum and is payable in arrears each June 2nd and December 2nd.
Additionally, both the accrued interest and deferred interest on the $10,000,000
Loan previously owed the County was retroactively recalculated from the Loan
origination date at a rate of approximately 5 percent compared to 7.7654 percent
per the original Agreement. The recalculated deferred interest was $3,111,400.
In accordance with the MOU, the recalculated deferred interest does not accrue
additional interest. As of June 30, 2010, a total of $1,975,097 in accumulated tax
increment has been applied against this balance, including $354,606 applied
during fiscal year 2009-10. The remaining balance at June 30, 2010, was
$1,136,303. The accumulated amount of tax increment withheld over the
scheduled principal and interest payment made during the life of the RDA bond is
recorded in the Debt Service Fund as a prepaid item at June 30, 2010.
After payment of the deferred interest, the RDA may elect to further defer
payment to the County of the 50.9 percent of tax increment revenue in order to
See independent auditors' report.
57
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #5 — LONG-TERM DEBT (continued)
extinguish any other indebtedness of the RDA. This deferral would allow the tax
increment to be available for the repayment of loans made to the RDA by the City
(Note #3). In the event the deferral is elected, and the debt owed the City is fully
extinguished and no other RDA indebtedness exists, the RDA will transfer all
subsequent tax increment revenue to the County to fund prior deferrals of, and
current payments of, the 50.9 percent of tax increment revenue required to be
paid per the Settlement Agreement.
The debt service schedule below summarizes all fixed principal and interest
payments for the term of the RDA bond. Because the payback period for the
deferred interest amount will fluctuate depending on the availability of excess tax
increment revenues, no amounts have been included in the following schedule
for repayment of the deferred interest.
Year Ending
June 30,
Principal
Interest
Total
2011
$ 85,000
$ 260,375
$ 345,375
2012
100,000
255,750
355,750
2013
120,000
250,250
370,250
2014
135,000
243,875
378,875
2015
155,000
236,625
391,625
2016-2020
1,145,000
1,033,375
2,178,375
2021-2025
1,900,000
657,500
2,557,500
2026-2028
1,610,000
125,000
1,735,000
Totals
$ 5,250,000
$ 3,062,750
$ 8,312,750
B. Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences.
Based on historical trends, $232,429 estimated to be the amount that will be
used and/or paid out during fiscal year 2010-11.
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
In the Government -Wide financial statements net assets are classified in the
following categories:
Invested in Capital Assets, Net of Related Debt
This category groups all capital assets, including infrastructure, into one
component of net assets. Accumulated depreciation on these assets reduces this
See independent auditors' report.
58
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
(continued)
category as does any outstanding balance on debt incurred in acquiring or
constructing the capital assets.
Restricted Net Assets
This category presents external restrictions imposed by creditors, grantors,
contributions or laws or regulations of other governments and restrictions
imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Assets
This category represents the net assets of the City that are not externally
restricted for any project or other purpose.
In the Fund Financial Statements the City has established "reserves" to
segregate portions of fund balance which are not appropriable for expenditure in
future periods, or which are legally set aside for a specific future use. In addition,
fund balance may be designated to indicate tentative plans for financial resource
utilization of unreserved fund balance in a future period.
The City's governmental funds reserves and designations at June 30, 2010 are
presented below, followed by explanations of the nature and purpose of each
reserve and designation.
Street RDA Housing RDA Debt Capital Other
General Maintenance Set -Aside Service Improvement Governmental
Fund Fund Fund Fund Fund Funds
Reserved:
Reimbursement settlement
agreement
$ -
$
$ -
$ -
$
$
1,000,000
Prepaid items
813,442
1,086
540,561
18,502
Advances to other funds
6,306,376
-
-
1,766,368
Long term receivables
-
2,990,000
-
Habitat restoration
-
-
43,741
Inventory
46,648
-
-
-
Totals Reserved
$ 7,166,466
$
$ 2,991,086
$ 540,561
$
$
2,828,611
Designated:
Continuing Appropriations:
General fund
$ 1,462,450
$
$
$
$
$
-
Special revenue funds
-
85,000
Capital projects funds
6,939,260
554,675
Totals Designated
$ 1,462,450
$
$
$
$ 6,939,260
$
639,675
See independent auditors' report.
59
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #6 — CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
(continued)
A. Reserved for Reimbursement Settlement Agreement
This reserve has been established under the legal requirements of the
Reimbursement Settlement Agreement (see Note #5).
B. Reserved for Prepaid Items
This reserve is provided to indicate that the asset carrying value is not available
to spend to meet expenditures of the current year.
C. Reserved for Advances to Other Funds
This reserve represents the long-term portion of loans from the City's General
Fund to the RDA less $11,288,299 recorded as deferred revenue (see Note #12)
D. Reserved for Lonq Term Receivables
The RDA sold land held for development known as the Crestridge property to the
developer of an affordable senior housing project for $2,990,000. The repayment
terms are based on the project's net available cash flow each year. As the timing
and amounts of repayment are not yet identifiable, the fund balance is reserved
for the outstanding amount of the note receivable.
E. Reserved for Habitat Restoration
These funds are reserved as required by the City's Natural Community
Conservation Plan to provide for future habitat restoration in the City's open
space preserve.
F. Reserved for Inventory
Fund balance has been reserved for the carrying amount of inventory held at
Point Vicente Interpretive Center gift shop, as this asset is not available to satisfy
the liabilities of the City.
G. Designated for Continuinq Appropriations
These designations are maintained for current year budget appropriations that
are formally carried over into the subsequent fiscal year.
See independent auditors' report.
60
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #7— 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 participates in the Miscellaneous 2.5% at
55 Risk Pool of the California Public Employee's Retirement System (CalPERS),
a cost-sharing, multi-employer public employee defined benefit pension plan
administered by CalPERS. CalPERS provides retirement and disability benefits,
annual cost -of -living adjustments, and death benefits to plan members and
beneficiaries. State statutes, within the Public Employees' Retirement Law,
establish benefit provisions and other requirements. The City selects optional
benefit provisions from the benefit menu by contract with CalPERS and adopts
those benefits through local ordinance. Copies of the CalPERS annual financial
report may be obtained from the CalPERS Executive Office at 400 P Street,
Sacramento, California 95814 or downloaded from their website at
www.calpers.gov.
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 8% of their annual covered
salary. The City pays 6.5% of the contribution for all the full-time positions, and
1% of the contribution for part-time employees. The City is required to contribute
the actuarially determined remaining amounts necessary to fund the benefits for
its members. The FY09-10 rate was 13.547% of covered payroll. The City's
contributions to CalPERS for the years ending June 30, 2010, 2009 and 2008
were $2,475,581, $1,508,304 and $747,183, respectively, and were equal to the
required contribution for each year.
As a result of having less than 100 active members as of June 30, 2003, the City
was required to participate in a risk pool. The City's pooled employer contribution
rate is the same as the stand-alone employer contribution rate. At the time of
joining the mandatory pooled plan, CalPERS established an employer side fund
to account for the difference between the funded status of the pooled plan and
the funded status of the City's plan. The amortization of the side fund is included
in the determination of the City's annual required contribution.
The funded status of the pooled plan may be obtained from CalPERS.
See independent auditors' report.
61
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #7 — PENSION AND RETIREMENT HEALTH SAVINGS PLANS
(continued)
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 FY09-10, the City contributed a total of
$162,424 to employee accounts, which included a one-time retroactive
contribution of $129,316. During the same time, employees contributed a total of
$18,294 to their own accounts. The City originally approved establishment of the
Plan during the 2007 budget process for implementation in 2008. As the Plan did
not become active until January 2010, the City Council approved a one-
timeretroactive contribution equivalent to contributions that would have been
made during 2008 and 2009 had the Plan been active.
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 #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION
Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority (CJPIA).
The CJPIA is comprised of 122 California public entities and is organized under a
joint powers agreement pursuant to California Government Code section 6500 et
seq. The purpose of the CJPIA is to arrange and administer programs for the
pooling of self-insured losses, to purchase excess insurance or reinsurance, and
to arrange for group -purchased insurance for property and other coverage. The
CJPIA pool began covering claims of its members in 1978. Each member
See independent auditors' report.
62
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION (continued)
government has an elected official as its representative on the Board of
Directors. The Board operates through a nine -member Executive Committee.
Self -Insurance Programs of the CJPIA
General Liability
Each member government pays a primary deposit to cover estimated losses for a
fiscal year (claims year). After the close of a fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims
year. Costs are allocated to members as follows: the first $30,000 of each
occurrence is charged directly to the member's primary deposit; costs from
$30,000 to $750,000 and the loss development reserves associated with losses
up to $750,000 are pooled based on the member's share of losses under
$30,000. Losses from $750,000 to $5,000,000 and the associated loss
development reserves are pooled based on payroll. Costs of covered claims from
$5,000,000 to $10,000,000 are paid under reinsurance policies and are subject
to a $2,500,000 annual aggregate deductible. Costs of covered claims from
$10,000,000 to $50,000,000 are covered through excess insurance policies.
Costs of covered claims for subsidence losses are paid by excess insurance with
$25,000,000 sub -limits per member per occurrence. This $25,000,000
subsidence sub -limit is composed of $10,000,000 in reinsurance and
$15,000,000 in excess insurance with a $15,000,000 annual aggregate. The
overall policy limit for each member including all layers of coverage is
$50,000,000 per occurrence.
Workers' Compensation
The City also participates in the workers' compensation pool administered by
CJPIA. Each member pays a primary deposit to cover estimated losses for a
fiscal year (claims year). After the close of the fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims
year. Each member has a retention level of $50,000 for each loss and this is
charged directly to the member's primary deposit. Losses from $50,000 to
$100,000 and the loss development reserve associated with losses up to
$100,000 are pooled based on the member's share of losses under $50,000.
Losses from $100,000 to $2,000,000 and the loss development reserves
associated with those losses are pooled based on payroll. Losses from
$2,000,000 up to statutory limits are paid under an excess insurance policy.
See independent auditors' report.
63
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION (continued)
Administrative expenses are paid from CJPIA investment earnings.
Employer's Liability losses are pooled among members to $2,000,000, coverage
from $2,000,000 to $4,000,000 is purchased as part of an excess insurance
policy, and losses from $4,000,000 to $10,000,000 are pooled among members.
Purchased Insurance
Environmental Insurance
The City participates in the pollution legal liability and remediation legal liability
insurance, which is available through CJPIA. The policy covers sudden and
gradual pollution of scheduled property, streets, and storm drains owned by the
City. Coverage is on a claims -made basis. There is a $50,000 deductible. The
CJPIA has a limit of $50,000,000 for the 3 -year period from July 1, 2008 through
July 1, 2011. Each member of the CJPIA has a $10,000,000 sub -limit during the
3 -year term of the policy.
Property Insurance
The City participates in the all-risk property protection program of the CJPIA. This
insurance protection is underwritten by several insurance companies. The City's
property is currently insured according to a schedule of covered property
submitted by the City to the CJPIA. The City currently has all-risk property
insurance protection in the amount of $13,783,100. There is a $5,000 deductible
per occurrence except for non -emergency vehicle insurance which has a $1,000
deductible. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property.
The earthquake insurance is part of the property protection insurance program of
the CJPIA. The City's property currently has earthquake protection in the amount
of $13,421,569. There is a deductible of 5% of value with a minimum deductible
of $100,000. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
See independent auditors' report.
64
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #8 — LIABILITY, INSURED PROGRAMS AND WORKERS'
COMPENSATION PROTECTION (continued)
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a
$2,500 deductible. The fidelity coverage is provided through CJPIA. Premiums
are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of
certain property to purchase low-cost tenant user liability insurance for certain
activities on City property. The insurance premium is paid by the tenant user and
is paid to the City according to a schedule. The City then pays for the insurance.
Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of
protection have had settlements or judgments that exceeded pooled or insured
coverage. There have been no significant reductions in pooled or insured liability
coverage in the year ended June 30, 2010.
NOTE #9 — CONTINGENCIES AND COMMITMENTS
Litigation
In the normal course of operations, the City has been named as a defendant in
various claims and legal actions. Generally, unfavorable results of these claims
and legal actions are funded through the City's participation in California Joint
Powers Insurance Authority (CJPIA, see Note #8) and, as such, the City believes
that the ultimate liability for these legal actions and claims will not have a material
adverse effect on the City's financial statements. The City is also a defendant in
legal actions for which the potential losses would not be covered through
participation in CJPIA. The likelihood of an unfavorable outcome or the amount of
potential losses cannot be reasonably estimated by the City for these claims at
this time. In the event of an unfavorable outcome the losses would likely be
material to the City's financial statements.
See independent auditors' report.
65
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #9 — CONTINGENCIES AND COMMITMENTS (continued)
Storm Drain Failures
During the winter storms of fiscal year 2004-05 citywide emergency repairs were
required, including those to repair sinkholes along Western Avenue. The City
received reimbursement from the Federal Emergency Management Agency in
the amount of approximately $1.2 million. Of that amount, $274,430 is currently
reserved in the Capital Improvement Projects Fund.
Based on a recent audit by the Department of Homeland Security's Office of
Inspector General, the City may be liable to return over $900,000 to FEMA. The
City strongly disagrees with the auditor's conclusions and intends to file all
appropriate appeals in support of its claim that it should be allowed to retain the
FEMA funds.
Buildinq Moratorium
There is longstanding building moratorium in the landslide area of the City.
Several landowners with parcels in this area filed a lawsuit claiming an
unconstitutional taking of their property due to the building moratorium and the
City's adoption in 2002 of a safety standard that must be satisfied before
development could occur in this area. The landowners claim that the City has
made it impossible for them to satisfy the exception to the moratorium that would
allow development of the parcels.
Judgment was entered for the City after a three-month trial in the Superior Court.
However, the California Court of Appeal reversed the trial court's decision. The
landowners are seeking a trial on the issue of damages, which they assert
exceed $32 million. The parties have negotiated a settlement, but the plaintiffs
have refused to sign it. Trial is currently scheduled for February 2011. A liability
has been accrued for the potential settlement as of June 30, 2010. The City will
continue its vigorous defense of this case.
NOTE #10 — PROPOSITION 1A BORROWING BY THE STATE OF
CALIFORNIA
Under the provisions of Proposition 1A and as part of the 2009-10 budget
package passed by the California state legislature on July 28, 2009, the State of
California borrowed 8% of the amount of property tax revenue, including those
property taxes associated with the in -lieu motor vehicle license fee, the triple flip
in lieu sales tax, and supplemental property tax, apportioned to cities, counties
See independent auditors' report.
66
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #10 — PROPOSITION 1A BORROWING BY THE STATE OF
CALIFORNIA (continued)
and special districts (excluding redevelopment agencies). The state is required
to repay this borrowing plus interest by June 30, 2013.
Authorized with the 2009-10 State budget package, the Proposition 1A
Securitization Program was instituted by the California Statewide Communities
Development Authority ("California Communities"), a joint powers authority
sponsored by the California State Association of Counties and the League of
California Cities, to enable local governments to sell their Proposition 1A
receivables to California Communities. Under the Securitization Program,
California Communities simultaneously purchased the Proposition 1A receivables
and issued bonds ("Prop 1A Bonds") to provide local agencies with cash
proceeds in two equal installments, on January 15, 2010 and May 3, 2010. The
purchase price paid to the local agencies equaled 100% of the amount of the
property tax reduction. All transaction costs of issuance and interest were paid
by the State of California. Participating local agencies have no obligation on the
bonds and no credit exposure to the State. The City participated in the
securitization program and accordingly property taxes have been recorded in the
same manner as if the State had not exercised its rights under Proposition 1A.
The receivable sale proceeds were equal to the book value and, as a result, no
gain or loss was recorded.
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.
Lien date
Levy date
Due date
Collection dates
NOTE #12 — DEFERRED REVENUES
January 1
June 30
November 1 and February 1
December 10 and April 10
The deferred revenues in the fund financial statements of the City of Rancho
Palos Verdes as of June 30, 2010 consisted of the following:
See independent auditors' report.
67
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE #12 — DEFERRED REVENUES (continued)
General Fund
Accrued interest from long-term advance to the RDA $ 11,288,300
Advance on federal grant 108,034
Revenue earned but not available 162,252
Other Governmental Funds -
Long -term notes receivable from AMCAL 3,346,306
Accrued interest from long-term advance to RDA 7,835
Long-term notes receivable offset (loans expended when made) 738,333
Total Deferred Revenues $ 15,651,060
NOTE #13 — OTHER REQUIRED FUND DISCLOSURES
The following fund had deficit fund balance as of June 30, 2010:
Major Fund:
RDA Debt Service Fund
$17,256,214
The City plans to finance the fund deficit through future revenues and transfers
from other funds.
The following budget program had expenditures in excess of the budget for the
year ended June 30, 2010, as follows:
Budget
General Fund Non -Departmental $0
See independent auditors' report.
68
Expenditures Excess
$320,000 $320,000
SUPPLEMENTARY INFORMATION
69
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY DEBT SERVICE FUND
For the year ended June 30, 2010
REVENUES:
Taxes
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Current:
Administration
Pass through to other agencies
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND DEFICIT - BEGINNING OF YEAR
FUND DEFICIT - END OF YEAR
See independent auditors' report,
Budgeted Amounts
Original Final
$ 820,900 $ 846,900
820,900 846,900
Variance with
Final Budget
Positive
Actual (Negative)
$ 862,609 $ 15,709
183 183
16,400
346,525
346,483
42
174,400
174,400
183,625
(9,225)
381,375
381,375
419,606
(38,231)
1,025,525
1,025,525
885,998
139,527
1,597,700
1,927,825
1,835,712
92,113
(776,800)
(1,080,925)
(972,920)
108,005
(16,283,294)
(16,283,294)
(16,283,294)
-
$ (17,060,094)
$ (17,364,219)
$ (17,256,214) $
108,005
70
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, 2010
See independent auditors' report.
71
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Revenue from other agencies
$ 858,320
$ 2,804,720
$ 6,998,875
$ 4,194,155
Use of money and property
64,600
6,014,600
466,967
(5,547,633)
TOTAL REVENUES
922,920
8,819,320
7,465,842
(1,353,478)
EXPENDITURES:
Capital Outlay
Infrastructure administration
17,200
17,200
1,985
15,215
Street improvements
5,832,960
5,068,303
3,750,571
1,317,732
Parks/Trails/Open Space improvements
956,600
6,901,800
6,727,315
174,485
Sewer improvements
-
17,000
4,989
12,011
TOTAL EXPENDITURES
6,806,760
12,004,303
10,484,860
1,519,443
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER)EXPENDITURES
(5,883,840)
(3,184,983)
(3,019,018)
165,965
OTHER FINANCING SOURCES:
Transfers in
4,848,320
5,776,284
2,893,435
(2,882,849)
NET CHANGE IN FUND BALANCE
(1,035,520)
2,591,301
(125,583)
(2,716,884)
FUND BALANCE - BEGINNING OF YEAR
7,207,180
7,207,180
7,207,180
-
FUND BALANCE- END OF YEAR
$ 6,171,660
$ 9,798,481
$ 7,081,597
$ (2,716,884)
See independent auditors' report.
71
N'y
Founders Park
72
CITY OF RANCHO PALOS VERDES
JUNE 30, 2010
NONMAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions
Special Revenue Funds are used to account for taxes and other revenues set
aside in accordance with law or administrative regulation for a specific purpose.
Air Quality Management — to account for AB2766 fees received to fund programs
to reduce air pollution from motor vehicles.
Community Development Block Grant (CDBG) — to account for Federal Grants
received from the Department of Housing and Urban Development (HUD).
Community Development Block Grant Recovery Act (CDBG-R) — to account for a
special one-time federal grant funded under the American Recovery and
Reinvestment Act of 2009 to provide funding for infrastructure, energy efficiency,
education, health care, and job creation/retention.
EI Prado — to account for taxes collected to maintain and service existing and
proposed improvements to the common area of the EI Prado neighborhood.
Proposition A — to account for the City share of an additional one-half percent
sales tax designated to fund certain public transportation orientated projects.
Proposition C — to account for sales taxes received from the County and used to
support public transit and related services.
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.
Beautification — to account for monies received for the City's recycling program
used for community improvement, grants and promotion of recycling.
Waste Reduction — to account for AB939 fees received for state mandated waste
reduction and recycling plans and programs.
Public Safety Grants — to account for federal grant funds for local law
enforcement supplemental services, AB3229 funds used for additional law
enforcement services and public safety technology equipment.
1972 Act Landscaping and Lighting District (1972 Act) — to account for revenues
and costs associated with the City's landscaping and lighting district.
73
CITY OF RANCHO PALOS VERDES
JUNE 30, 2010
NONMAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions (continued)
1911 Act Lighting District (1911 Act) — to account for revenue and costs
associated with a lighting district transferred to the "city -side" landscape and
lighting district from the County in 1995.
Joint Powers Improvement Authority - Portuguese Bend — to account for
maintenance and repairs of landslide abatement improvements in the
Portuguese Bend Project area.
Habitat Restoration — to account for fees paid by developers for conservation
easements to be used exclusively for habitat restoration efforts on City owned
property.
Subregion One Maintenance — to account for monies used to maintain public
improvements and habitat areas dedicated to the City upon completion of the
Subregion One residential development project also known as Oceanfront
Estates.
Measure A — to account for the voter approved 1992 and 1996 Measure A funds
and other state and county grants used for the acquisition of open space and
park improvements.
Abalone Cove Sewer Assessment District — to account for property assessments
used to partially pay for operation and maintenance of the Abalone Cove sewer
system.
Rancho Palos Verdes TV Channel — to account for donations and General Fund
subsidies used to operate the City's cable television channel.
Dr. Allen and Charlotte Ginsburq Cultural Arts Buildinq (Ginsburg Cultural Art
Bldg) — to account for a private donation to be used for either construction of a
building at the Upper Point Vicente Civic Center to be used for dancing and other
cultural activities, or for the purchase of open space within the City for habitat
conservation and passive recreational purposes.
Donor Restricted Contributions — to account for donations received to construct
or acquire recreational facilities within the City.
Capital Projects Funds Descriptions
Capital Projects Funds are used to account for financial resources used for the
acquisition or construction of major capital facilities.
74
CITY OF RANCHO PALOS VERDES
JUNE 30, 2010
NONMAJOR GOVERNMENTAL FUNDS
Capital Projects Funds Descriptions (continued)
Bikeways — to account for state funds that are used for the construction of
bikeways and pedestrian facilities.
Redevelopment Agency - Abalone Cove — to account for monies used for
landslide abatement in the Abalone Cove area of the Redevelopment Agency
Project Area.
Environmental Excise Tax — to account for taxes received in connection with new
construction within the City.
Quimby — to account for developer paid fees or the dedication of land for park
and recreation purposes.
Affordable Housing — to account for developer paid in -lieu fees for the City to
construct low and moderate income housing.
Redevelopment Agency - Portuguese Bend — to account for monies used for
landslide abatement in the Portuguese Bend area of the Redevelopment Agency
Project Area.
Utility Undergrounding — to account for the accumulation of monies transferred
from the General fund, to be used for relocating utility poles and lines on arterial
roadways underground, and provide residents assistance with utility
undergrounding in residential areas of the City.
Roadway Beautification — to account for the accumulation of monies transferred
from the General and Recycling funds to be used for landscape improvements
along the City's roadways.
Permanent Fund Description
Permanent Funds are used to account for resources legally restricted to the
extent that only earnings, and not principal, may be used for purposes that
support the City's programs.
Joint Powers Improvement Authority - 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
75
CITY OF RANCHO PALOS VERDES
JUNE 30, 2010
NONMAJOR GOVERNMENTAL FUNDS
Permanent Fund Description (continued)
$1,000,000 deposit of nonexpendable principal. The interest earnings are used
to pay for maintenance and repair of Abalone Cove landslide abatement
improvements.
76
Public Access to the Coastline
77
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2010
Special Revenue Funds
See independent auditors' report
78
Air
Quality
Management
CDBG
CDBG-R
El Prado
Proposition A
ASSETS
Cash and investments
$
38,364
$
-
$
-
$
12,691
$
126,639
Receivables:
Taxes
-
-
-
90
-
Interest
31
-
-
14
66
Notes
-
433,375
-
-
-
Other
13,014
46,100
5,138
-
-
Prepaid items
-
-
-
-
-
Advance to other funds
-
-
-
-
-
TOTAL ASSETS
$
51,409
$
479,475
$
5,138
$
12,795
$
126,705
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities
$
-
$
31,239
$
5,138
$
(55)
$
26,441
Due to other funds
-
14,861
-
-
-
Deferred revenue
-
433,375
-
-
-
TOTAL LIABILITIES
-
479,475
5,138
(55)
26,441
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement
-
-
-
-
-
Prepaid items
-
-
-
-
-
Long term advances
-
-
-
-
-
Habitat restoration
-
-
-
-
-
Unreserved:
Designated for continuing
appropriations:
Special revenue funds
-
-
-
-
-
Capital projects funds
-
-
-
-
-
Undesignated reported in:
Special revenue funds
51,409
-
-
12,850
100,264
Capital projects funds
-
-
-
-
-
Permanent funds
-
-
-
-
-
TOTAL FUND
BALANCES
51,409
-
-
12,850
100,264
TOTAL LIABILITIES
AND FUND BALANCES
$
51,409
$
479,475
$
5,138
$
12,795
$
126,705
See independent auditors' report
78
Special Revenue Funds (Continued)
247 $ 16,272 $ - $ 1,225
- - 247 16,272 - 1,225
- - 75,000 - - -
1,695,558 273,216 783,102 230,495 34,920 50,745
1,695,558 273,216 858,102 230,495 34,920 50,745
$ 1,695,558 $ 273,216 $ 858,349 $ 246,767 $ 34,920 $ 51,970
(Continued)
79
Public
Waste
Safety
Proposition C
Measure R
Beautification
Reduction
Grants
1972 Act
$ 1,692,274
$ 272,980
$ 808,175
$ 210,228
$ 27,245
$ 43,826
-
-
-
-
-
7,891
3,284
236
1,649
267
127
253
-
-
48,525
36,272
7,548
-
$ 1,695,558
$ 273,216
$ 858,349
$ 246,767
$ 34,920
$ 51,970
247 $ 16,272 $ - $ 1,225
- - 247 16,272 - 1,225
- - 75,000 - - -
1,695,558 273,216 783,102 230,495 34,920 50,745
1,695,558 273,216 858,102 230,495 34,920 50,745
$ 1,695,558 $ 273,216 $ 858,349 $ 246,767 $ 34,920 $ 51,970
(Continued)
79
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2010
See independent auditors' report
80
Special Revenue Funds (Continued)
Joint Powers
Improvement
Subregion
Authority
Habitat
One
1911 Act
Portuguese Bend
Restoration
Maintenance
ASSETS
Cash and investments
$
1,671,109
$ 288,771
$
275,044
$
782,444
Receivables:
Taxes
23,255
-
-
-
Interest
1,907
188
149
811
Notes
-
-
-
-
Other
-
-
-
-
Prepaid items
-
-
-
-
Advance to other funds
-
-
-
-
TOTAL ASSETS
$
1,696,271
$ 288,959
$
275,193
$
783,255
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities
$
57,153
$ 5,638
$
-
$
9,335
Due to other funds
-
-
-
-
Deferred revenue
-
-
-
-
TOTAL LIABILITIES
57,153
5,638
-
9,335
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement
-
-
-
-
Prepaid items
-
-
-
-
Long term advances
-
-
-
-
Habitat restoration
-
-
43,741
-
Unreserved:
Designated for continuing
appropriations:
Special revenue funds
-
-
-
10,000
Capital projects funds
-
-
-
-
Undesignated reported in:
Special revenue funds
1,639,118
283,321
231,452
763,920
Capital projects funds
-
-
-
-
Permanent funds
-
-
-
-
TOTAL FUND
BALANCES
1,639,118
283,321
275,193
773,920
TOTAL LIABILITIES
AND FUND BALANCES
$
1,696,271
$ 288,959
$
275,193
$
783,255
See independent auditors' report
80
Special Revenue Funds (Continued)
$ - $ 3,860 $ 6,445 $
11,796 - -
11,796 3,860 6,445
162,938
- - 26,657
- - 433,375
- 622,970
- - 1,310 - - 1,310
- - - - - 43,741
- - - - - 85,000
34,162 58,343 (158) 202,156 403,838 6,848,711
34,162 58,343 1,152 202,156 403,838 6,978,762
$ 45,958 $ 62,203 $ 7,597 $ 202,156 $ 403,838 $ 7,601,732
(Continued)
81
Dr. Allen and
Abalone Cove
Rancho
Charlotte
Total
Sewer
Palos
Ginsburg
Donor
Special
Assessment
Verdes
Cultural
Restricted
Revenue
Measure A
District
TV Channel
Arts Building
Contributions
Funds
$ 7,440
$ 61,747
$ 6,287
$ 201,938
$ 403,392
$ 6,930,594
-
385
-
-
-
31,621
58
71
-
218
446
9,775
-
-
-
-
-
433,375
38,460
-
-
-
-
195,057
-
-
1,310
-
-
1,310
$ 45,958
$ 62,203
$ 7,597
$ 202,156
$ 403,838
$ 7,601,732
$ - $ 3,860 $ 6,445 $
11,796 - -
11,796 3,860 6,445
162,938
- - 26,657
- - 433,375
- 622,970
- - 1,310 - - 1,310
- - - - - 43,741
- - - - - 85,000
34,162 58,343 (158) 202,156 403,838 6,848,711
34,162 58,343 1,152 202,156 403,838 6,978,762
$ 45,958 $ 62,203 $ 7,597 $ 202,156 $ 403,838 $ 7,601,732
(Continued)
81
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2010
See independent auditors' report
82
Capital Projects Funds
Redevelopment
Agency
Abalone
Environmental
Affordable
Bikeways
Cove
Excise Tax
Quimby
Housing
ASSETS
Cash and investments
$
-
$
6,197
$ 722,314
$
29,173
$
7,007
Receivables:
Taxes
-
-
-
-
-
Interest
15
6
1,004
32
18
Notes
-
-
-
-
-
Other
2,666
-
-
-
-
Prepaid items
-
-
-
-
-
Advance to other funds
-
-
-
-
1,774,203
TOTAL ASSETS
$
2,681
$
6,203
$ 723,318
$
29,205
$
1,781,228
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities
$
-
$
-
$ 39,067
-
Due to other funds
2,681
-
-
-
-
Deferred revenue
-
-
-
-
7,835
TOTAL LIABILITIES
2,681
-
39,067
-
7,835
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement
-
-
-
-
-
Prepaid items
-
-
-
-
-
Long term advances
-
-
-
-
1,766,368
Habitat restoration
-
-
-
-
-
Unreserved:
Designated for continuing
appropriations:
Special revenue funds
-
-
-
-
-
Capital projects funds
-
-
554,675
-
-
Undesignated reported in:
Special revenue funds
-
-
-
-
-
Capital projects funds
-
6,203
129,576
29,205
7,025
Permanent funds
-
-
-
-
-
TOTAL FUND
BALANCES
-
6,203
684,251
29,205
1,773,393
TOTAL LIABILITIES
AND FUND BALANCES
$
2,681
$
6,203
$ 723,318
$
29,205
$
1,781,228
See independent auditors' report
82
Capital Projects Funds (Continued)
Permanent Fund
Redevelopment
Total
Joint Powers
Total
Agency
Capital
Improvement
Other
Portuguese
Utility
Roadway
Projects
Authority
Governmental
Bend
Undergrounding
Beautification
Funds
Abalone Cove
Funds
$ 549,540
$ 274,855
$ 101,956 $
1,691,042
$ 1,334,819
$ 9,956,455
-
-
-
-
-
31,621
574
304
112
2,065
1,379
13,219
304,958
-
-
304,958
-
738,333
-
-
-
2,666
-
197,723
17,192
-
-
17,192
-
18,502
-
-
-
1,774,203
-
1,774,203
$ 872,264
$ 275,159
$ 102,068 $
3,792,126
$ 1,336,198
$ 12,730,056
$ 1,502 $ - $ - $ 40,569 $ 2,975 $ 206,482
- - - 2,681 - 29,338
304,958 - - 312,793 - 746,168
306,460 - - 356,043 2,975 981,988
- - - - 1,000,000 1,000,000
17,192 - - 17,192 - 18,502
- - - 1,766,368 - 1,766,368
- - - - - 43,741
- - - - - 85,000
- - - 554,675 - 554,675
- - - - - 6,848,711
548,612 275,159 102,068 1,097,848 - 1,097,848
- - - - 333,223 333,223
565,804 275,159 102,068 3,436,083 1,333,223 11,748,068
$ 872,264 $ 275,159 $ 102,068 $ 3,792,126 $ 1,336,198 $ 12,730,056
83
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2010
Special Revenue Funds
EXCESS (DEFICIENCY)
Air
OF REVENUES OVER
(UNDER) EXPENDITURES (1,367)
26,853
OTHER FINANCING SOURCES (USES):
Quality
Transfers in -
-
Transfers out -
(26,847)
TOTAL OTHER FINANCING
Management
CDBG
CDBG-R
El Prado
Proposition A
REVENUES:
6
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR 52,776
(6)
Taxes
$ -
$ -
$ -
$ 1,887
$
Use of money and property
170
-
-
59
459
Revenue from other agencies
98,463
247,080
51,380
-
546,618
Otherrevenues
-
-
-
-
-
TOTAL REVENUES
98,633
247,080
51,380
1,946
547,077
EXPENDITURES:
Current:
Administration
-
-
-
-
-
Public works
100,000
-
-
234
641,707
Community development
-
-
-
-
-
Parks and recreation
-
-
-
-
-
Capital outlay
-
220,227
51,380
-
-
TOTAL EXPENDITURES
100,000
220,227
51,380
234
641,707
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES (1,367)
26,853
OTHER FINANCING SOURCES (USES):
Transfers in -
-
Transfers out -
(26,847)
TOTAL OTHER FINANCING
SOURCES (USES) -
(26,847)
NET CHANGE IN
FUND BALANCES (1,367)
6
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR 52,776
(6)
FUND BALANCES (DEFICIT)
1,712 (94,630)
- - (2,800)
- - (2,800)
- 1,712 (97,430)
- 11,138 197,694
END OF YEAR $ 51,409 $ - $ - $ 12,850 $ 100,264
See independent auditors' report.
84
Special Revenue Funds (Continued)
-
- 25,803
218,650
-
Public
- 25,803
Waste
Safety
218,650
Proposition C
Measure R
Beautification
Reduction
Grants
1972 Act
$ -
$ -
$ -
$ -
$ -
$ 262,418
14,084
390
7,188
223,920
380
641
453,443
272,826
-
91,120
100,000
-
-
-
200,220
-
-
-
467,527
273,216
207,408
315,040
100,380
263,059
-
- 25,803
218,650
-
70,973
- 25,803
-
218,650
-
70,973
467,527
273,216 181,605
96,390
100,380
192,086
(1,336,968)
- (690,754)
(40,000)
(100,000)
(200,000)
(1,336,968)
- (690,754)
(40,000)
(100,000)
(200,000)
(869,441)
273,216 (509,149)
56,390
380
(7,914)
2,564,999
- 1,367,251
174,105
34,540
58,659
$ 1,695,558 $
273,216 $ 858,102 $
230,495 $
34,920
$ 50,745
(Continued)
85
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2010
See independent auditors' report.
86
Special Revenue Funds (Continued)
Joint Powers
Improvement
Subregion
Authority
Habitat
One
1911 Act
Portuguese Bend
Restoration
Maintenance
REVENUES:
Taxes $
492,606Use
of money and property
8,441
1,042
5,804
3,795
Revenue from other agencies
-
-
-
-
Otherrevenues
-
-
-
-
TOTAL REVENUES
501,047
1,042
5,804
3,795
EXPENDITURES:
Current:
Administration
-
-
-
-
Public works
421,712
59,334
124,791
52,211
Community development
-
-
-
-
Parks and recreation
-
-
-
-
Capital outlay
-
-
-
-
TOTAL EXPENDITURES
421,712
59,334
124,791
52,211
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
79,335
(58,292)
(118,987)
(48,416)
OTHER FINANCING SOURCES (USES):
Transfers in
-
110,000
169,000
55,000
Transfers out
(72,824)
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
(72,824)
110,000
169,000
55,000
NET CHANGE IN
FUND BALANCES
6,511
51,708
50,013
6,584
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
1,632,607
231,613
225,180
767,336
FUND BALANCES (DEFICIT) -
END OF YEAR $
1,639,118
$ 283,321
$ 275,193
$ 773,920
See independent auditors' report.
86
Special Revenue Funds (Continued)
-
-
99,122
Dr. Allen and
-
99,122
-
Abalone Cove
Rancho
Charlotte
-
Total
-
Sewer
Palos
Ginsburg
Donor
Special
-
Assessment
Verdes
Cultural
Restricted
Revenue
Measure A
District
TV Channel
Arts Building
Contributions
Funds
$ -
$ 46,248
$ -
$ -
$ -
$ 803,159
234
425
(12)
1,653
1,936
270,609
49,373
-
-
-
-
1,910,303
-
1,159
-
-
399,820
601,199
49,607
47,832
(12)
1,653
401,756
3,585,270
-
-
99,122
-
-
99,122
-
97,783
-
-
-
1,813,198
-
-
-
300,000
-
300,000
-
-
-
-
-
271,607
-
97,783
99,122
300,000
-
2,483,927
49,607
(49,951)
(99,134)
(298,347)
401,756
1,101,343
-
14,700
105,000
-
-
453,700
(49,373)
-
-
-
-
(2,519,566)
(49,373)
14,700
105,000
-
-
(2,065,866)
234
(35,251)
5,866
(298,347)
401,756
(964,523)
33,928
93,594
(4,714)
500,503
2,082
7,943,285
$ 34,162 $
58,343 $
1,152
$ 202,156 $
403,838
$ 6,978,762
(Continued)
87
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2010
See independent auditors' report.
88
Capital Projects Funds
Redevelopment
Agency
Abalone
Environmental
Affordable
Bikeways
Cove
Excise Tax
Quimby
Housing
REVENUES:
TaxesUse
of money and property
48
32
4,386
137
5,681
Revenue from other agencies
18,540
-
-
-
-
Otherrevenues
-
-
79,624
3,898
932,910
TOTAL REVENUES
18,588
32
84,010
4,035
938,591
EXPENDITURES:
Current:
Administration
-
-
-
-
-
Public works
-
-
52,752
-
-
Community development
-
-
-
-
3,531
Parks and recreation
-
-
-
-
-
Capital outlay
-
-
-
-
-
TOTAL EXPENDITURES
-
-
52,752
-
3,531
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
18,588
32
31,258
4,035
935,060
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
-
Transfers out
(18,588)
-
(186,300)
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
(18,588)
-
(186,300)
-
-
NET CHANGE IN
FUND BALANCES
-
32
(155,042)
4,035
935,060
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR
-
6,171
839,293
25,170
838,333
FUND BALANCES (DEFICIT) -
END OF YEAR $
-
$ 6.203
$ 684.251
$ 29.205 $
1.773.393
See independent auditors' report.
88
Capital Projects Funds (Continued)
2,087,975
Permanent Fund
453,700
(2,724,454)
- - - (204,888) -
(2,270,754)
24,763 1,389 515 810,752 (29,008)
Redevelopment
Total
Joint Powers
Total
Agency
Capital
Improvement
Other
Portuguese
Utility Roadway
Projects
Authority
Governmental
Bend
Undergrounding Beautification
Funds
Abalone Cove
Funds
$ -
$ - $ -
$ -
$ -
$ 803,159
2,837
1,389 515
15,025
7,086
292,720
-
- -
18,540
-
1,928,843
50,004
- -
1,066,436
-
1,667,635
52,841
1,389 515
1,100,001
7,086
4,692,357
- - - - - 99,122
28,078 - - 80,830 36,094 1,930,122
- - - 3,531 - 3,531
- - - - - 300,000
- - - - - 271,607
28,078 - - 84,361 36,094 2,604,382
24,763 1,389 515 1,015,640 (29,008)
2,087,975
- - - - -
- - - (204,888) -
453,700
(2,724,454)
- - - (204,888) -
(2,270,754)
24,763 1,389 515 810,752 (29,008)
(182,779)
541,041 273,770 101,553 2,625,331 1,362,231 11,930,847
$ 565,804 $ 275,159 $ 102,068 $ 3,436,083 $ 1,333,223 $ 11,748,068
89
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, 2010
REVENUES:
Revenue from other agencies
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
See independent auditors' report.
Budgeted Amounts
Original Final
$ 49,800 $ 99,800 $
800 800
50,600 100,600
50,000 100,000
Variance with
Final Budget
Positive
Actual (Negative)
98,463 $ (1,337)
170 (630)
98,633 (1,967)
100,000 -
600 600 (1,367) (1,967)
52,776 52,776 52,776 -
$ 53,376 $ 53,376 $ 51,409 $ (1,967)
90
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, 2010
See independent auditors' report.
91
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Revenue from other agencies
$ 301,826
$ 336,826
$ 247,080
$ (89,746)
EXPENDITURES:
Capital outlay
274,978
309,978
220,227
89,751
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
26,848
26,848
26,853
5
OTHER FINANCING USES:
Transfers out
(26,848)
(26,848)
(26,847)
1
NET CHANGE IN FUND BALANCE
-
-
6
6
FUND DEFICIT - BEGINNING OF YEAR
(6)
(6)
(6)
-
FUND DEFICIT - END OF YEAR
$ (6)
S (6)
S -
$ 6
See independent auditors' report.
91
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT RECOVERY ACT REVENUE FUNK
For the year ended June 30, 2010
REVENUES:
Revenue from other agencies
EXPENDITURES:
Capital outlay
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ - $ 51,380
92
Variance with
Final Budget
Positive
Actual (Negative)
$ 51,380 $ -
- 51,380 51,380 -
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, 2010
REVENUES:
Taxes
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
See independent auditors' report.
Budgeted Amounts
Original Final
$ 1,870 $ 1,870 $
160 160
2,030 2,030
11,000 11,000
Variance with
Final Budget
Positive
Actual (Negative)
1,887 $ 17
59 (101)
1,946 (84)
234 10,766
(8,970) (8,970) 1,712 10,682
11,138 11,138 11,138 -
$ 2,168 $ 2,168 $ 12,850 $ 10,682
93
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, 2010
See independent auditors' report.
94
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Revenue from other agencies
$ 698,923
$ 546,923
$ 546,618
$ (305)
Use of money and property
1,000
1,000
459
(541)
TOTAL REVENUES
699,923
547,923
547,077
(846)
EXPENDITURES:
Public works
670,900
670,900
641,707
29,193
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
29,023
(122,977)
(94,630)
28,347
OTHER FINANCING USES:
Transfers out
(2,800)
(69,800)
(2,800)
67,000
NET CHANGE IN FUND BALANCE
26,223
(192,777)
(97,430)
95,347
FUND BALANCE - BEGINNING OF YEAR
197,694
197,694
197,694
-
FUND BALANCE - END OF YEAR
$ 223,917
$ 4,917
$ 100,264
$ 95,347
See independent auditors' report.
94
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, 2010
See independent auditors' report.
95
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Revenue from other agencies
$ 570,384
$ 457,384
$ 453,443
$ (3,941)
Use of money and property
24,900
24,900
14,084
(10,816)
TOTAL REVENUES
595,284
482,284
467,527
(14,757)
OTHER FINANCING USES:
Transfers out
(2,259,720)
(2,963,771)
(1,336,968)
1,626,803
NET CHANGE IN FUND BALANCE
(1,664,436)
(2,481,487)
(869,441)
1,612,046
FUND BALANCE - BEGINNING OF YEAR
2,564,999
2,564,999
2,564,999
-
FUND BALANCE - END OF YEAR
$ 900,563
$ 83,512
$ 1,695,558
$ 1,612,046
See independent auditors' report.
95
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, 2010
See independent auditors' report.
96
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Revenue from other agencies
$ 221,267
$ 221,267
$ 272,826
$ 51,559
Use of money and property
-
-
390
390
TOTAL REVENUES
221,267
221,267
273,216
51,949
FUND BALANCE - BEGINNING OF YEAR
-
-
-
-
FUND BALANCE - END OF YEAR
$ 221,267
$ 221,267
$ 273,216
$ 51,949
See independent auditors' report.
96
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, 2010
See independent auditors' report.
97
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Other revenues
$ 150,000
$ 150,000
$ 200,220
$ 50,220
Use of money and property
12,900
12,900
7,188
(5,712)
TOTAL REVENUES
162,900
162,900
207,408
44,508
EXPENDITURES:
Public works
96,530
32,530
25,803
6,727
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
66,370
130,370
181,605
51,235
OTHER FINANCING USES:
Transfers out
(756,000)
(1,048,000)
(690,754)
357,246
NET CHANGE IN FUND BALANCE
(689,630)
(917,630)
(509,149)
408,481
FUND BALANCE - BEGINNING OF YEAR
1,367,251
1,367,251
1,367,251
-
FUND BALANCE - END OF YEAR
$ 677,621
$ 449,621
$ 858,102
$ 408,481
See independent auditors' report.
97
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, 2010
See independent auditors' report.
98
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Revenue from other agencies
$ 65,000
$ 65,000
$ 91,120
$ 26,120
Use of money and property
72,890
221,390
223,920
2,530
TOTAL REVENUES
137,890
286,390
315,040
28,650
EXPENDITURES:
Public works
174,408
284,708
218,650
66,058
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(36,518)
1,682
96,390
94,708
OTHER FINANCING USES:
Transfers out
(52,000)
(52,000)
(40,000)
12,000
NET CHANGE IN FUND BALANCE
(88,518)
(50,318)
56,390
106,708
FUND BALANCE- BEGINNING OF YEAR
174,105
174,105
174,105
-
FUND BALANCE - END OF YEAR
$ 85,587
$ 123,787
$ 230,495
$ 106,708
See independent auditors' report.
98
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, 2010
REVENUES:
Revenue from other agencies
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Public safety
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 100,000 $ 100,000 $
Variance with
Final Budget
Positive
Actual (Negative)
100,000 $ -
380 380
100,000 100,000 100,380 380
- 33,635 - 33,635
100,000 66,365 100,380 34,015
(100,000) (100,000) (100,000) -
- (33,635) 380 34,015
34,540 34,540 34,540 -
$ 34,540 $ 905 $ 34,920 $ 34,015
99
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, 2010
REVENUES:
Taxes
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original
Final
$ 257,559
$ 257,559 $
900
900
258,459
258,459
69,100
69,100
189,359
189,359
Variance with
Final Budget
Positive
Actual (Negative)
262,418 $ 4,859
641 (259)
263,059 4,600
70,973 (1,873)
192,086 2,727
(200,000) (200,000) (200,000) -
(10,641) (10,641) (7,914) 2,727
58,659 58,659 58,659 -
$ 48,018 $ 48,018 $ 50,745 $ 2,727
100
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, 2010
See independent auditors' report.
101
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Taxes
$ 483,100
$ 483,100
$ 492,606
$ 9,506
Use of money and property
21,700
21,700
8,441
(13,259)
TOTAL REVENUES
504,800
504,800
501,047
(3,753)
EXPENDITURES:
Public works
493,400
493,400
421,712
71,688
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
11,400
11,400
79,335
67,935
OTHER FINANCING USES:
Transfers out
(84,000)
(84,000)
(72,824)
11,176
NET CHANGE IN FUND BALANCE
(72,600)
(72,600)
6,511
79,111
FUND BALANCE - BEGINNING OF YEAR
1,632,607
1,632,607
1,632,607
-
FUND BALANCE- END OF YEAR
$ 1,560,007
$ 1,560,007
$ 1,639,118
$ 79,111
See independent auditors' report.
101
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUSE BEND SPECIAL REVENUE FUNS
For the year ended June 30, 2010
REVENUES:
Use of money and property
EXPENDITURES:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 2,820 $ 2,820 $ 1,042 $ (1,778)
138,700 138,700 59,334 79,366
(135,880) (135,880) (58,292) 77,588
110,000 110,000 110,000 -
(25,880) (25,880) 51,708 77,588
231,613 231,613 231,613 -
$ 205,733 $ 205,733 $ 283,321 $ 77,588
102
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HABITAT RESTORATION SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Use of money and property
EXPENDITURES:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 1,800 $ 1,800 $ 5,804 $ 4,004
124,791 194,791 124,791 70,000
(122,991) (192,991) (118,987) (65,996)
115,000 169,000 169,000 -
(7,991) (23,991) 50,013 (65,996)
225,180 225,180 225,180 -
$ 217,189 $ 201,189 $ 275,193 $ (65,996)
103
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SUBREGION ONE MAINTENANCE SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Use of money and property
EXPENDITURES:
Public works
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 11,300 $ 11,300 $ 3,795 $ (7,505)
67,000 67,000 52,211 14,789
(55,700) (55,700) (48,416) 7,284
55,000 55,000 55,000 -
(700) (700) 6,584 7,284
767,336 767,336 767,336 -
$ 766,636 $ 766,636 $ 773,920 $ 7,284
104
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, 2010
REVENUES:
Revenue from other agencies
Use of money and property
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 151,000 $ 161,913
Actual
$ 49,373
234
Variance with
Final Budget
Positive
(Negative)
$ (112,540)
234
151,000 161,913 49,607 (112,306)
(151,000) (161,913) (49,373) 112,540
- - 234 234
33,928 33,928 33,928 -
$ 33,928 $ 33,928 $ 34,162 $ 234
105
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, 2010
REVENUES:
Taxes
Other revenues
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Public works
Capital outlay
TOTAL EXPENDITURE
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 45,650 $ 45,650
570 570
46,220 46,220
62,038 66,038
- 32,000
62,038 98,038
97,783 (31,745)
- 32,000
97,783 255
(15,818) (51,818) (49,951) 1,357
10,700 10,700 14,700 4,000
(5,118) (41,118) (35,251) 5,357
93,594 93,594 93,594 -
$ 88,476 $ 52,476 $ 58,343 $ 5,357
106
Variance with
Final Budget
Positive
Actual
(Negative)
46,248
$ 598
1,159
1,159
425
(145)
47,832
1,612
97,783 (31,745)
- 32,000
97,783 255
(15,818) (51,818) (49,951) 1,357
10,700 10,700 14,700 4,000
(5,118) (41,118) (35,251) 5,357
93,594 93,594 93,594 -
$ 88,476 $ 52,476 $ 58,343 $ 5,357
106
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
RANCHO PALOS VERDES TV CHANNEL SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Other revenues
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Administration
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT) - BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Filial
$ 1,000 $ 1,000
160 160
1,160 1,160
Variance with
Final Budget
Positive
Actual (Negative)
$ $ (1,000)
(12) (172)
(12) (1,172)
84,750 99,750 99,122 628
(83,590) (98,590) (99,134) (544)
75,000 90,000 105,000 15,000
(8,590) (8,590) 5,866 14,456
(4,714) (4,714) (4,714) -
$ (13,304) $ (13,304) $ 1,152 $ 14,456
107
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 FUNK
For the year ended June 30, 2010
REVENUES:
Use of money and property
TOTAL REVENUES
EXPENDITURES:
Park and recreation
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 7,600 $ 7,600 $ 1,653 $ (5,947)
7,600 7,600 1,653 (5,947)
- 305,439 300,000 5,439
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 7,600 (297,839) (298,347) (11,386)
FUND BALANCE - BEGINNING OF YEAR 500,503 500,503 500,503 -
FUND BALANCE- END OF YEAR $ 508,103 $ 202,664 $ 202,156 $ (11,386)
See independent auditors' report.
108
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, 2010
See independent auditors' report.
109
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Other revenues
$ 600,000
$ 600,000
399,820
(200,180)
Use of money and property
-
-
1,936
1,936
TOTAL REVENUES
600,000
600,000
401,756
(198,244)
OTHER FINANCING USES:
Transfers out
(600,000)
(600,000)
-
600,000
NET CHANGE IN FUND BALANCE
-
-
401,756
401,756
FUND BALANCE - BEGINNING OF YEAR
2,082
2,082
2,082
-
FUND BALANCE - END OF YEAR
$ 2,082
$ 2,082
$ 403,838
$ 401,756
See independent auditors' report.
109
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
BIKEWAYS CAPITAL PROJECTS FUND
For the year ended June 30, 2010
REVENUES:
Revenue from other agencies
Use of money and property
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 25,000 $ 25,000
Variance with
Final Budget
Positive
Actual (Negative)
$ 18,540 $ (6,460)
25,000 25,000 18,588
(25,000) (25,000) (18,588)
110
(6,412)
6,412
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY ABALONE COVE CAPITAL PROJECTS FUND
For the year ended June 30, 2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 90 $ 90 $ 32 $ (58)
FUND BALANCE - BEGINNING OF YEAR 6,171 6,171 6,171 -
FUND BALANCE - END OF YEAR $ 6,261 $ 6,261 $ 6,203 $ (58)
See independent auditors' report.
ME
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX CAPITAL PROJECTS FUNK
For the year ended June 30, 2010
See independent auditors' report.
112
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Other revenues
$ 97,000
$ 97,000
$ 79,624
$ (17,376)
Use of money and property
10,100
10,100
4,386
(5,714)
TOTAL REVENUES
107,100
107,100
84,010
(23,090)
EXPENDITURES:
Public works
350,000
51,325
52,752
(1,427)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(242,900)
55,775
31,258
(24,517)
OTHER FINANCING USES:
Transfers out
(332,600)
(332,600)
(186,300)
146,300
NET CHANGE IN FUND BALANCE
(575,500)
(276,825)
(155,042)
121,783
FUND BALANCE - BEGINNING OF YEAR
839,293
839,293
839,293
-
FUND BALANCE - END OF YEAR
$ 263,793
$ 562,468
$ 684,251
$ 121,783
See independent auditors' report.
112
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
QUIMBY CAPITAL PROJECTS FUND
For the year ended June 30, 2010
See independent auditors' report.
113
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Other revenues
$ 1,300,000
$ 1,300,000
$ 3,898
$ (1,296,102)
Use of money and property
-
-
137
137
TOTAL REVENUES
1,300,000
1,300,000
4,035
(1,295,965)
FUND BALANCE - BEGINNING OF YEAR
25,170
25,170
25,170
-
FUND BALANCE- END OF YEAR
$ 1,325,170
$ 1,325,170
$ 29,205
$ (1,295,965)
See independent auditors' report.
113
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AFFORDABLE HOUSING CAPITAL PROJECTS FUND
For the year ended June 30, 2010
See independent auditors' report.
114
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Other revenues
$ -
$ 931,910
$ 932,910
$ 1,000
Use of money and property
16,600
16,600
5,681
(10,919)
TOTAL REVENUES
16,600
948,510
938,591
(9,919)
EXPENDITURES:
Community development
12,500
12,500
3,531
8,969
Capital outlay
1,099,000
1,766,368
-
1,766,368
TOTAL EXPENDITURE
1,111,500
1,778,868
3,531
1,775,337
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(1,094,900)
(830,358)
935,060
(1,785,256)
FUND BALANCE - BEGINNING OF YEAR
838,333
838,333
838,333
-
FUND BALANCE - END OF YEAR
$ (256,567)
$ 7,975
$ 1,773,393
$ (1,785,256)
See independent auditors' report.
114
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY PORTUGUESE BEND CAPITAL PROJECTS FUNK
For the year ended June 30, 2010
See independent auditors' report.
115
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Other revenues
-
-
50,004
50,004
Use of money and property
$ 7,300
$ 7,300
$ 2,837
$ (4,463)
TOTAL REVENUES
7,300
7,300
52,841
45,541
EXPENDITURES:
Public works
31,075
32,073
28,078
3,995
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(23,775)
(24,773)
24,763
49,536
FUND BALANCE - BEGINNING OF YEAR
541,041
541,041
541,041
-
FUND BALANCE - END OF YEAR
$ 517,266
$ 516,268
$ 565,804
$ 49,536
See independent auditors' report.
115
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
UTILITY UNDERGROUNDING CAPITAL PROJECTS FUND
For the year ended June 30, 2010
See independent auditors' report.
116
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 4,100 $ 4,100
$ 1,389
$ (2,711)
FUND BALANCE - BEGINNING OF YEAR
273,770 273,770
273,770
-
FUND BALANCE- END OF YEAR
$ 277,870 $ 277,870
$ 275,159
$ (2,711)
See independent auditors' report.
116
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ROADWAY BEAUTIFICATION CAPITAL PROJECTS FUND
For the year ended June 30, 2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property $ 1,500 $ 1,500 $ 515 $ (985)
FUND BALANCE - BEGINNING OF YEAR 101,553 101,553 101,553 -
FUND BALANCE - END OF YEAR $ 103,053 $ 103,053 $ 102,068 $ (985)
See independent auditors' report.
117
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, 2010
See independent auditors' report.
118
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Use of money and property
$ 19,500
$ 19,500
$ 7,086
$ (12,414)
EXPENDITURES:
Public works
108,176
108,176
36,094
72,082
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(88,676)
(88,676)
(29,008)
59,668
FUND BALANCE - BEGINNING OF YEAR
1,362,231
1,362,231
1,362,231
-
FUND BALANCE - END OF YEAR
$ 1,273,555
$ 1,273,555
$ 1,333,223
$ 59,668
See independent auditors' report.
118
CITY OF RANCHO PALOS VERDES
JUNE 30, 2010
INTERNAL SERVICE FUNDS DESCRIPTIONS
The Internal Service Funds are used to finance and account for goods and services
provided by one City department to other City departments on a cost -reimbursement
basis, including depreciation.
Equipment Replacement — to account for purchases, replacement and maintenance of
certain equipment items on behalf of all City departments.
Building Replacement — to account for the accumulation of funds transferred from the
General Fund for replacement of certain buildings on behalf of the City.
Employee Benefits — to account for employee benefit costs for all employees charged to
various City departments.
119
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
June 30, 2010
ASSETS
CURRENT ASSETS:
Cash and investments
Receivables:
Interest
Prepaid items
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
Capital assets:
Property and equipment
Accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Due to other funds
Accounts payable and accrued liabilities
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
See independent auditors' report.
Equipment
Building
Employee
170,340
Replacement
Replacement
Benefits
Totals
263,347
-
-
$ 2,857,924 $
1,133,864
$ 271,790
$ 4,263,578
3,188
1,265
154
4,607
-
-
121,867
121,867
2,861,112
1,135,129
393,811
4,390,052
1,401,374
-
-
1,401,374
(1,138,027)
-
-
(1,138,027)
263,347
-
-
263,347
3,124,459
1,135,129
393,811
4,653,399
42,665
92,811
34,864
170,340
42,665
92,811
34,864
170,340
263,347
-
-
263,347
2,818,447
1,042,318
358,947
4,219,712
$ 3,081,794 $
1,042,318
$ 358,947
$ 4,483,059
120
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS - INTERNAL SERVICE FUNDS
For the year ended June 30, 2010
OPERATING REVENUES:
Charges for services
OPERATING EXPENSES:
Personnel services
Materials and supplies
Maintenance
Depreciation
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES:
Other revenues
Investment income
TOTAL NONOPERATING REVENUES
LOSS BEFORE TRANSFERS
Transfer in
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING OF YEAR
TOTAL NET ASSETS - END OF YEAR
See independent auditors' report.
Equipment Building
Replacement Replacement
S 69,700 S -
Employee
Benefits Totals
$ 2,126,672 S 2,196,372
-
-
3,548,913
3,548,913
118,999
-
-
118,999
50,320
296,995
-
347,315
119,385
-
-
119,385
288,704
296,995
3,548,913
4,134,612
(219,004)
(296,995)
(1,422,241)
(1,938,240)
-
6,806
-
6,806
14,864
6,456
846
22,166
14,864
13,262
846
28,972
(204,140)
(283,733)
(1,421,395)
(1,909,268)
-
-
1,575,501
1,575,501
(204,140)
(283,733)
154,106
(333,767)
3,285,934
1,3 26,051
204,841
4,816, 826
$ 3,081,794
$ 1,042,318
$ 358,947
$ 4,483,059
121
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2010
See independent auditors' report.
122
Equipment
Building
Employee
Replacement
Replacement
Benefits
Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfiind services provided
$ 69,700
$
-
$ 2,126,672
$ 2,196,372
Payments to suppliers
(215,975)
(246,619)
(462,594)
Payments to employees
-
-
(3,089,019)
(3,089,019)
NET CASH USED
BY OPERATING ACTIVITIES
(146,275)
(246,619)
(962,347)
(1,355,241)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and constriction of capital assets
(64,955)
-
-
(64,955)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Receipts from other hinds
-
6,806
1,233,362
1,240,168
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
19,633
8,797
775
29,205
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
(191,597)
(231,016)
271,790
(150,823)
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
3,049,521
1,364,880
-
4,414,401
CASH AND CASH EQUIVALENTS -
END OF YEAR
$ 2,857,924
$
1,133,864
$ 271,790
$ 4,263,578
RECONCILIATION OF OPERATING LOSS
TO NET CASH USED
BY OPERATING ACTIVITIES:
Operating loss
$ (219,004)
$
(296,995)
$ (1,422,241)
$ (1,938,240)
Adjustments to reconcile operating loss to
net cash used by operating activities:
Depreciation
119,385
-
-
119,385
Changes in operating assets and liabilities:
decrease in prepaid items
-
-
408,641
408,641
Increase (decrease) in accrued liabilities
(46,656)
50,376
51,253
54,973
NET CASH USED
BY OPERATING ACTIVITIES
$ (146,275)
$
(246,619)
$ (962,347)
$ (1,355,241)
See independent auditors' report.
122
STATISTICAL SECTION
123
lit
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 126
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 133
These schedules contain information to help the reader assess the City's most significant
local revenue source, property tax.
Debt Capacity 137
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 140
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 143
These schedules contain services and infrastructure data to help the reader understand
how the information in the City's financial report relates to the services the City provides
and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
125
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
City of Rancho Palos Verdes
Net Assets by Component
Last Nine Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010
$ 93,636
$ 94,895
$ 92,499
$ 94,023
$ 109,991
$ 109,746
$ 109,376
$ 107,867
$ 115,331
10,327
10,661
11,586
12,075
12,417
12,163
1,000
1,000
1,000
13,666
13,004
14,271
15,659
16,024
17,823
30,471
31,277
31,855
$ 117,629
$ 118,560
$ 118,356
$ 121,757
$ 138,432
$ 139,732
$ 140,847
$ 140,144
$ 148,186
$ 1,311 $ 2,158 $ 5,599 $ 12,477 $ 12,458
The information in this table is not available prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
126
$
2,000
2,799
5,258
7,740
2,108
2,825
$
2,000
$ 4,110
$ 7,416
$ 13,339
$ 14,585
$ 15,283
$ 93,636
$ 94,895
$ 92,499
$
94,023
$ 111,302
$ 111,904
$ 114,975
$ 120,344
$ 127,789
10,327
10,661
11,586
12,075
12,417
12,163
1,000
1,000
1,000
13,666
13,004
14,271
17,659
18,823
23,081
38,211
33,385
34,680
$ 117,629
$ 118,560
$ 118,356
$
123,757
$ 142,542
$ 147,148
$ 154,186
$ 154,729
$ 163,469
The information in this table is not available prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
126
City of Rancho Palos Verdes
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010
Expenses
Governmental activities
Administration
$ 3,069
$ 3,294
$ 3,499
$ 4,055
$ 4,350
$
4,953
$ 4,724
$ 6,357
$
7,824
Public safety
2,898
3,094
3,024
3,079
3,437
3,751
4,044
4,233
4,242
Public works
7,283
7,954
7,462
9,488
9,290
9,969
9,026
10,555
13,633
Parks and recreation
687
809
948
1,065
1,659
1,439
1,396
1,605
1,826
Community development
1,916
2,170
2,296
2,223
2,060
2,631
2,441
2,697
2,550
Non -departmental
-
-
-
-
-
-
-
-
320
Interest on Long-term debt
273
273
273
272
270
271
270
268
265
Total governmental activities expenses
16,126
17,594
17,502
20,182
21,066
23,014
21,901
25,715
30,660
Business -type activities:
Water Quality Flood Protection
47
271
301
437
580
Total primary government expenses
$ 16,126
$ 17,594
$ 17,502
$ 20,182
$ 21,113
$
23,285
$ 22,202
$ 26,152
$
31,240
Program Revenues
Governmental activities:
Charges for services:
Administration
$ 157
$ 87
$ 69
$ 62
$ 35
$
29
$ 538
$ 555
$
681
Public safety
433
235
165
163
224
332
316
267
229
Public works
78
252
217
131
37
185
1,002
422
1,356
Parks and recreation
10
8
6
41
45
51
483
483
896
Community development
979
1,202
1,363
1,188
1,319
1,599
1,760
1,643
1,764
Operating grants and contributions
6,877
2,971
2,836
2,728
3,894
4,200
3,570
2,963
6,633
Capital grants and contributions
706
131
37
4,524
17,299
317
1,472
642
7,179
Total governmental activities program revenues
9,240
4,886
4,693
8,837
22,853
6,713
9,141
6,975
18,738
Business -type activities:
Charges for services:
Water Quality Flood Protection
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
-
-
-
-
-
-
-
-
-
Total primary government program revenues
$ 9,240
$ 4,886
$ 4,693
$ 8,837
$ 22,853
$
6,713
$ 9,141
$ 6,975
$
18,738
Net (expense)/revenue
Governmental activities
$ (6,886)
$ (12,708)
$ (12,809)
$ (11,345)
$ 1,787
$
(16,301)
$ (12,760)
$ (18,740)
$
(11,922)
Business -type activities
-
-
-
(47)
(271)
(301)
(437)
(580)
Total primary government net expense
$ (6,886) $ (12,708)
$ (12,809)
$ (11,345)
$ 1,740
$ (16,572)
$ (13,061)
$ (19,177)
$ (12,502)
127
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes
Franchise taxes
Sales taxes
Utility user taxes
Othertaxes
Investment income
Other
Transfers
Total governmental activities
Business -type activities:
Investment income
User Fees
Other
Transfers
Total business -type activities
Total primary government
Change in Net Assets
City of Rancho Palos Verdes
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010
$ 5,253
$ 5,335
$ 5,706
$ 5,840
$ 9,621
$ 10,235
$ 10,935
$ 11,462 $
11,431
1,139
1,087
1,275
1,307
1,454
1,512
1,599
1,709
1,711
1,093
1,003
1,205
1,276
1,214
1,381
1,056
1,053
1,246
1,812
1,832
1,851
1,901
2,191
2,271
2,329
2,267
2,395
2,744
3,495
2,867
4,545
727
363
820
690
2,667
814
371
331
594
997
1,615
1,555
631
207
(67)
517
2,481
1,283
793
2,101
300
225
307
(2,000)
(2,109)
(2,017)
(4,719)
-
-
12,788
13,640
15,716
14,746
14,888
17,461
13,875
18,037
19,964
48
51
283
105
14
-
1,188
1,222
1,578
1,264
-
320
2,000
2,109
2,017
4,719
-
-
2,000
2,157
3,576
6,224
1,683
1,278
$ 12,788 $ 13,640 $ 15,716 $ 16,746 $ 17,045 $ 21,037 $ 20,099 $ 19,720 $ 21,242
Governmental activities $ 5,902 $ 932 $ 2,907 $ 3,401 $ 16,675 $ 1,160 $ 1,115 $ (703) $ 8,042
Business -type activities - - - 2,000 2,110 3,305 5,923 1,246 698
Total primary government net expense $ 5,902 $ 932 $ 2,907 $ 5,401 $ 18,785 $ 4,465 $ 7,038 $ 543 $ 8,740
The information in this table is not available prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
128
City of Rancho Palos Verdes
Governmental Activities Tax Revenues By Source
Last Nine Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
1: Most of the Motor Vehicle In Lieu Tax is received as Property Tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2002, as the City did
not implement GASB 34 until Fiscal Year 2002.
129
Utility
Fiscal
Property
Franchise
Sales
Users
Other
Year
Tax
Tax
Tax
Tax
Taxes
Total
2002
$ 5,253
$ 1,139
$ 1,093
$ 1,812
$ 2,744
$ 12,041
2003
5,335
1,087
1,003
1,832
3,495
12,752
2004
5,706
1,275
1,205
1,851
2,867
12,904
2005
5,840
1,307
1,276
1,901
4,545
14,869
2006
9,621
1,454
1,214
2,191
727
' 15,207
2007
10,235
1,512
1,381
2,271
363
15,762
2008
10,935
1,599
1,056
2,329
820
16,739
2009
11,462
1,709
1,053
2,267
690
17,181
2010
11,431
1,711
1,246
2,395
2,667
19,450
1: Most of the Motor Vehicle In Lieu Tax is received as Property Tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2002, as the City did
not implement GASB 34 until Fiscal Year 2002.
129
General Fund
Reserved
Designated
Unreserved, Undesignated
Total General Fund
All other Governmental Funds
Reserved
Designated
Special Revenue Funds
Capital Projects Funds
Permanent Fund
Debt Service Fund
Unreserved, Undesignated, reported in:
Special Revenue Funds
Capital Projects Funds
Permanent Fund
Debt Service Fund
Total all other Governmental Funds
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2001 2002 2003 2004 2005
2006 2007 2008 2009 2010
$ 6,317 $ 6,571 $ 6,854 $ 6,639 $ 6,021
$ 6,165
$ 6,586
$ 6,645
$ 6,314
$ 7,166
675
876
786
1,278
1,333
1,462
7,043 7,234 9,607 14,066 14,209
13,649
14,376
12,171
10,440
10,745
$ 13,360 $ 13,805 $ 16,461 $ 20,705 $ 20,905
$ 20,690
$ 21,748
$ 20,094
$ 18,087
$ 19,373
$ 3,406 $ 11,256 $ 7,584 $ 7,229 $ 3,147 $ 3,315 $ 2,396 $ 2,724 $ 3,672 $ 6,361
615 744 1,849 1,896 411 85
10,472 2,416 2,799 3,158 4,347 6,442 7,494
75 65
4,697 4,753
5,012
5,040
5,902
6,615
6,426
7,494
7,910
6,058
332
534
2,430
3,320
2,077
1,869
1,908
3,373
1,240
443
460
418
426
329
325
371
362
333
10,477
10,915)
12,070)
12,793)
13,741)
14,873)
15,990)1(
6,823)
(17,797)
$ 18,575 $ 6,307
$ 2,675
$ 3,047
$ 3,033
$ 2,213
$ 1,215
$ 2,750
$ 5,347
$ 3,774
1: Prior to 2002, all Capital Projects Fund Balances were designated for future projects.
2: Prior to 2002, the Permanent Fund was reported as a Fiduciary fund.
3: Prior to 2002, the balance of long-term debt was recorded in an account group instead of the Debt Service Fund.
130
Revenues
Taxes
Licenses and permits
Fines and forfeitures
Use of money and property
Charges for services
Revenues from other agencies
Other Revenues
Total Revenues
Expenditures
Administration
Public Safety
Public Works
Parks and Recreation
Community Development
Non -Departmental
Pass Through to other agencies
Capital Outlay
Debt Service
Principal
Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
Other Financing Sources (uses)
Transfers in
Transfers out
Bond Proceeds
Advances to the Redevelopment Agency
Total Other Financing Sources (uses)
Net change in Fund Balances
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)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
S 10,309 S 10,677 S 11,046 S 12,081 S 13,573 S 15,238 S 16,453 S 17,062 S 17,573 S 19,844
1,164 1,245 1,463 1,310 1,326 1,440 1,763 1,914 1,755 1,954
139 117 115 102 108 171 237 260 214 179
1,971 1,153 804 733 1,306 7,038 3,480 2,108 1,240 1,601
197 217 205 379 152 49 61 60 163 81
4,816 8,170 4,318 3,453 7,848 15,511 4,118 4,647 3,575 10,180
882 563 554 2,363 1,038 155 201 1,563 467 4,806
19,478 22,142 18,505 20,421 25,351 39,602 26,313 27,614 24,987 38,645
3,052
2,915
3,092
3,328
3,852
4,041
4,607
4,411
4,915
5,720
2,733
2,898
3,094
3,039
3,092
3,438
3,751
4,044
4,233
4,242
4,972
7,449
5,292
4,801
6,302
5,277
6,864
5,768
7,075
6,896
596
669
786
946
965
1,593
1,319
1,281
1,354
1,702
1,778
1,950
2,194
2,362
2,302
2,361
2,681
2,496
2,723
2,604
-
-
-
-
-
-
-
-
-
320
91
102
137
156
188
200
152
169
187
-
7,015
8,246
3,893
368
4,912
20,202
3,124
3,112
2,459
14,567
184
200
248
316
350
419
1,128
930
836
805
905
1,150
1,390
1,370
1,101
886
21,365
25,159
19,324
15,805
22,702
38,462
24,136
22,967
24,397
37,356
(1,887)
(3,017)
(819)
4,616
2,649
1,140
2,177
4,647
590
1,289
5,013
4,294
1,676
1,844
6,180
4,989
4,489
3,158
5,815
4,616
(5,165)
(4,877)
(1,833)
(1,844)
(8,180)
(7,247)
(6,606)
(7,924)
(5,815)
(6,192)
855
703
(583)
(157)
-
(2,000)
(2,258)
(2,117)
(4,766)
-
(1,576)
S (1>184)
_L_(
S (976)
S 4,616
S 649
S (1>118)
S 60
S (119)
S 590
S (287)
Cost of Assets Capitalized 11,047 4,184 379 4,623 19,465 2,800 2,764 1,895 10,866
Debt Services as a percentage of Non -Capital Expenditures 6.6% 5.5% 5.2% 6.0% 7.1% 7.7% 8.3% 6.4% 4.9%
1: The cost of assets capitalized from Governmental Fund expenditures is not available prior to Fiscal Year 2002, as the City did not implement GASB 34 until Fiscal Year 2002.
131
City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts expressed in thousands)
Source: City General Ledger
1: Most of the Motor Vehicle In Lieu Fees are received as property tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2000, as the City has
not retained detailed general ledger information sufficient to provide tax revenue by type
prior to Fiscal Year 2000.
132
Utility
Fiscal
Property
Franchise
Sales
Users
Other
Year
Tax
Tax
Tax
Tax
Taxes
Total
2001
4,629
1,087
1,101
1,764
1,728
10,309
2002
4,972
1,139
1,093
1,812
1,661
10,677
2003
5,335
1,087
1,003
1,832
1,789
11,046
2004
5,706
1,275
1,205
1,851
2,044
12,081
2005
8,494
' 1,307
1,009
1,901
862
13,573
2006
9,576
1,299
995
2,191
1,177
15,238
2007
10,385
1,511
1,020
2,272
1,265
16,453
2008
10,898
1,599
1,077
2,329
1,159
17,062
2009
11,462
1,709
1,060
2,267
1,075
17,573
2010
11,431
1,711
1,158
2,395
3,148
19,844
Source: City General Ledger
1: Most of the Motor Vehicle In Lieu Fees are received as property tax beginning in 2006.
The information in this table is not available prior to Fiscal Year 2000, as the City has
not retained detailed general ledger information sufficient to provide tax revenue by type
prior to Fiscal Year 2000.
132
City of Rancho Palos Verdes
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
Fiscal
Estimated
Direct
Actual
Tax
Taxable
Less
Year
Residential
Commercial
Industrial
Other
Unsecured
Tax -Exempt
End
Property
Property
Property
Property
Property
Property
2001
$ 5,065,424
$ 74,006
$ -
$ 204,529
$ 18,423
$ 69,733 $
2002
5,410,470
73,923
-
197,904
19,641
71,660
2003
5,730,464
70,475
-
191,541
21,741
73,768
2004
6,137,760
74,753
1,660
179,867
22,889
73,701
2005 *
6,530,448
76,445
1,691
317,463
22,222
218,193
2006 *
7,034,406
88,691
3,086
365,175
21,561
218,916
2007
7,548,956
111,338
3,148
513,876
20,378
226,598
2008
8,080,905
170,825
3,211
370,134
26,546
152,181
2009
8,436,947
281,813
3,275
367,999
46,858
166,268
2010
8,333,042
263,157
3,341
598,539
49,628
236,925
Taxable
Assessed
5,362,382
5,701,938
6,014,221
6,416,930
6,730,076
7,294,003
7,971,098
8,499,440
8,970,624
9,010,782
Total
Estimated
Direct
Actual
Tax
Taxable
Rate (1)
Value (2)
0.00679
$ 7,136,526
0.00787
0.00732
0.00790
0.00792
0.00789
0.00787
0.00793
0.00796
0.00637
7,588,424
8,004,026
8,539,971
8,956,722
9,707,224
10,608,336
11,311,480
11,938,555
9,515,566
Source: 2009-10 & 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.
133
Factor of
Taxable
Assessed Value
1.33085
1.33085
1.33085
1.33085
1.33085
1.33085
1.33085
1.33085
1.33085
1.05602
Assessed
Value as a
Percentage of
75.14%
75.14%
75.14%
75.14%
75.14%
75.14%
75.14%
75.14%
75.14%
94.70%
Fiscal
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
General
Levy (1)
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
Los Angeles
County
0.00131
0.00113
0.00103
0.00099
0.00092
0.00080
0.00066
City of Rancho Palos Verdes
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Flood
Control
District
0.00156
0.00107
0.00088
0.00047
0.00024
0.00005
0.00005
Metropolitan Palos Verdes Community
Water Library College
District District District
0.00880
0.00770
0.00670
0.00610
0.00580
0.00520
0.00470
0.00450
0.00430
0.00430
Source: 2009-10 & 2006-07 County Auditor/Controller data, MuniServices, LLC
Note: Tax rates are per $100 of assessed value.
Los Angeles County Auditor/Controller TRA 001-224
0.01138
0.00959
0.00970
0.00896
0.00852
0.00781
0.00731
0.01370
0.00680
0.00662
0.01600
0.01460
0.01986
0.01810
0.01430
0.02146
0.00878
0.02212
0.02311
Unified
School
Districts
0.05689
0.06361
0.05206
0.09191
0.10382
0.10384
0.12091
0.14310
0.14500
0.15181
(1) In 1978, California voters passed Proposition 13 which set the property tax at a 1.00% fixed amount. This 1.00% is shared
by all the taxing agencies for which the subject property resides within. In addition to 1.00% fixed amount, property owners
are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
134
Total Direct
& Overlapping
Tax Rates
1.07994
1.09909
1.08498
1.12830
1.13738
1.13195
1.15510
1.17010
1.17817
1.18539
City of Rancho Palos Verdes
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
Total Taxable Value $ 9,010,782,000
Source: Los Angeles County Assessor data, MuniServices, LLC
135
100.00% $ 5,362,381,799
100.00%
2009-10
2000-01
Percentage of
Percentage of
Taxable
Total City Taxable
Taxable
Total City Taxable
Taxpayer
Value ($)
Rank
Value (%)
Value ($)
Rank
Value (%)
Long Point Development LLC
$ 143,871,679
1
1.60%
PPC Villas RPV LLC
89,896,276
2
1.00%
VHPS LLC
62,442,705
3
0.69%
PV Victoria Apartments LLC
46,814,659
4
0.52%
Terraces Rancho Palos Verdes LLC
35,232,103
5
0.39%
Western Riviera Investors
28,496,134
6
0.32%
Golden Cove LLC
26,009,990
7
0.29%
COX Communication Inc. Orange
25,800,250
8
0.29%
Belmont Village PRV LP
22,285,368
9
0.25%
Johnson Eric C
20,101,293
10
0.22%
Tridiamond LLC
13,343,138
11
0.15%
Ruffin Phillip G
11,964,600
12
0.13%
Gradney Stephen P
8,405,164
13
0.09%
California Water Service Company
8,042,490
14
0.09%
Victoria Apartments
7,781,871
15
0.09%
Palos Verdes Terrace Ltd
7,623,193
16
0.08%
Amdan Investment LLC Lessee
7,140,000
17
0.08%
Gerts Igor & Anna
7,059,800
18
0.08%
Raleigh Group One LLC
6,650,000
19
0.07%
Saitta Christopher L
6,570,900
20
0.07%
Ocean Trails LP
52,283,693
1
0.98%
P V Victoria Apartments LLC
39,231,584
2
0.73%
Connecticut General Life
27,002,052
3
0.50%
RPV Associates
26,893,555
4
0.50%
Western Riviera Investors
23,892,133
5
0.45%
York Long Point Associates
21,155,726
6
0.39%
P V Terraces Inc.
18,492,430
7
0.34%
American Golf, Inc.
13,400,455
8
0.25%
Gardner Theodore Il
13,175,290
9
0.25%
California Water Service Company
10,263,028
10
0.19%
Palos Verdes 2 LLC
9,815,000
11
0.18%
Warmington PV Associates LP
7,908,883
12
0.15%
Victoria Apartments
6,523,049
13
0.12%
Rancho Palos Verdes Villas LLC
6,460,148
14
0.12%
Braun William
6,060,000
15
0.11%
Donahue Schriber Realty Group
5,817,843
16
0.11%
LA Barba James G Co TR
5,112,326
17
0.10%
Poster Robert D & Gina D
4,630,624
18
0.09%
Briles Richard & Keanna
4,500,000
19
0.08%
Bradford Edward T & Paullee G
4,360,095
20
0.08%
Totals
$ 585,531,613
6.50%
$ 306,977,914
5.72%
Total Taxable Value $ 9,010,782,000
Source: Los Angeles County Assessor data, MuniServices, LLC
135
100.00% $ 5,362,381,799
100.00%
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Six Fiscal Years
(amounts expressed in thousands)
Collected within the
Fiscal Year of the Lev
Total Tax
Fiscal
Levy for
Year
Fiscal Year
2005
$ 4,284
2006
4,643
2007
5,078
2008
5,351
2009
6,116
2010
5,447
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Six Fiscal Years
(amounts expressed in thousands)
Collected within the
Fiscal Year of the Lev
Source: County Assessor Data and City General Ledger
Percentage
Amount
of Levy
$ 4,001
93.40%
4,506
97.06%
4,799
94.51%
5,316
99.35%
5,734
93.76%
4,917
90.26%
Source: County Assessor Data and City General Ledger
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and
is therefore unavailable.
136
Total Collections to Date
Collections in
Percentage
Subsequent Years
Amount
of Levy
$ 144
$ 4,145
96.76%
36
4,542
97.83%
10
4,809
94.70%
10
5,327
99.55%
8
5,742
93.88%
8
4,925
90.41%
The detailed information presented in this table was not obtained by the City for fiscal years prior to 2005, and
is therefore unavailable.
136
City of Rancho Palos Verdes
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts expressed in thousands, except per capita amount)
Source: City Financial Records
137
Governmental Activities
RDA
RDA
Total
Debt
Ratio of Debt
Ratio of Debt
Fiscal
Tax Increment
Deferred Interest
Primary
Per
to Property
to Personal
Year
Bond
Payable
Government
Capita
Value
Total Income
2001
5,455
3,111
8,566
208.19
0.12%
0.0004497%
2002
5,455
3,111
8,566
203.94
0.11%
0.0004405%
2003
5,455
3,111
8,566
202.40
0.11%
0.0004372%
2004
5,455
3,111
8,566
200.09
0.10%
0.0004322%
2005
5,450
2,469
7,919
181.94
0.09%
0.0003567%
2006
5,435
2,284
7,719
179.55
0.08%
0.0003520%
2007
5,410
2,061
7,471
173.37
0.07%
0.0003399%
2008
5,370
1,786
7,156
166.56
0.06%
-
2009
5,315
1,491
6,806
159.32
0.06%
0.0003008%
2010
5,250
1,136
6,386
149.76
0.07%
0.0002838%
Source: City Financial Records
137
City of Rancho Palos Verdes
Direct and Overlapping Governmental Activities Debt
Current Year
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Los Angeles County Flood Control District
Metropolitan Water District
Los Angeles Community College District
Los Angeles Unified School District
Palos Verdes Unified School District
City of Rancho Palos Verdes
Palos Verdes Library District
Los Angeles County Regional Park and Open Space Assessment District
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations
Los Angeles County Pension Obligations
Los Angeles County Superintendent of Schools Certificates of Participation
Los Angeles County Sanitation District No. 5 Authority
Los Angeles County South Bay Cities Sanitation District Authority
Los Angeles Unified School District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND DEBT
Less: Los Angeles Unified School District QZABs supported by investment fund
TOTAL NET OVERLAPPING GENERAL FUND DEBT
Total Debt
City's Share of
6/30/2010 % Applicable
(1)
Debt 6/30/10
$69,610,000
0.980%
$682,178
264,220,000
0.497%
1,313,173
2,365,515,000
1.701%
40,237,410
11,874,430,000
0.207%
24,580,070
87,346,983
46.824%
38,558,151
-
0.000%
-
7,415,000
49.442%
3,666,124
222,660,000
0.966%
2,150,896
111,188,002
$855,695,839
0.966%
$8,266,022
118,486,192
0.966%
1,144,577
13,185,458
0.966%
127,372
56,909,182
10.628%
6,048,308
9,696,146
4.455%
431,963
456,780,324
0.207%
945,535
$16,963,777
(71,833)
16,891,944
GROSS COMBINED TOTAL DEBT $128,151,779 (2)
NET COMBINED TOTAL DEBT $128,079,946
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations.
2009-10 Assessed Valuation: 9,088,977,877
Redevelopment Incremental Valuation: 107,701,529
Adjusted Assessed Valuation: $8,981,276,348
Ratios to 2009-10 Assessed Valuation:
Direct Debt 0.00%
Total Direct and Overlapping Tax and Assessment Debt 1.22%
Ratios to Adjusted Assessed Valuation:
Gross Combined Total Debt 1.43%
Net Combined Total Debt 1.43%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/10: $0
Source: 2009-10 California Municipal Statistical Co.
138
Debt Limit
Total Net Debt applicable to limit
Legal Debt Margin
Total Net Debt applicable to the limit
as a percentage of Debt Limit
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
$ 804,357 $ 855,291 $ 902,133 $ 962,539 $ 1,021,177 $ 1,105,647 $ 1,195,665 $ 1,274,916 $ 1,345,594 $ 1,351,617
$ 804,357 $ 855,291 $ 902,133 $ 962,539 $ 1,021,177 $ 1,105,647 $ 1,195,665 $ 1,274,916 $ 1,345,594 $ 1,351,617
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
139
Total Taxable Value (see page 133) $ 9,010,782
Debt Limit (15% of total taxable value) 1,351,617
Debt applicable to limit -
Legal Debt Margin $ 1,351,617
City of Rancho Palos Verdes
Demographic and Economic Statistics
Last Ten Fiscal Years
Source: 2009-10 MuniServices, LLC
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data is provided by the United States Census Data and is adjusted for inflation.
3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
4.) Median Age reflects the US Census data estimation table.
"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.
140
County
Unemployment
Rate (%) (3)
7.50%
11.60%
City
Unemployment
Rate (%) (3)
1.50%
1.50%
1.50%
2.50%
4.00%
County
Population (1)
10,301,658
10,355,053
City
Population
(% of Countv)
0.41%
0.41%
Per Capita
"Public
Fiscal
Personal
Personal
Median
School
Year
Population (l)
Income (2)
Income (2)
Age (4)
Enrollment
2000-01
41,145
1,904,766,630
46.294
44.7
-
2001-02
42,002
1,944,440,588
46.294
44.7
-
2002-03
42,322
1,959,254,668
46.294
44.7
-
2003-04
42,810
1,981,846,140
46.294
44.7
-
2004-05
43,525
2,219,905,575
51.003
43.4
-
2005-06
42,991
2,192,669,973
51.003
43.4
-
2006-07
43,092
2,197,821,276
51.003
43.4
-
2007-08
42,964
-
-
-
-
2008-09
42,720
2,262,493,920
52.961
43.4
12,033
2009-10
42,642
2,250,346,266
52.773
44.9
11,900
Source: 2009-10 MuniServices, LLC
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data is provided by the United States Census Data and is adjusted for inflation.
3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
4.) Median Age reflects the US Census data estimation table.
"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.
140
County
Unemployment
Rate (%) (3)
7.50%
11.60%
City
Unemployment
Rate (%) (3)
1.50%
1.50%
1.50%
2.50%
4.00%
County
Population (1)
10,301,658
10,355,053
City
Population
(% of Countv)
0.41%
0.41%
City of Rancho Palos Verdes
Principal Sales Tax Payers
Last Fiscal Year and Nine Years Ago
7 -Eleven Food Stores
Food Markets
Albertson's Food Centers
Food Markets
America's Tire
Auto Parts/Repair
America's Tire
Auto Parts/Repair
Asaka Japanese Cuisine
Restaurants
Blockbuster Entertainment
Miscellaneous Retail
Carl's Jr. Restaurant
Restaurants
California Do It Center
B1dg.Matls-Retail
Centinela Feed & Pet Supplies Inc
Miscellaneous Retail
Carls Jr Restaurant
Restaurant
Chevron Service Stations
Service Stations
Chevron Service Stations
Service Stations
Coco's Restaurants, Inc.
Restaurants
Cocos Restaurants Inc
Restaurants
Daniel J Jeldum
Miscellaneous Retail
Dick's Hallmark
Miscellaneous Retail
El Pollo Loco Inc.
Restaurants
El Pollo Loco Inc
Restaurant
Good Night Mattress
Furniture/Appliance
Fedex Office
Miscellaneous Retail
Green Hills Memorial Park,Inc.
Miscellaneous Other
Golden Cove Unocal 76 Svc Stn
Service Stations
Green Hills Mrtury-Memrl.Chapel
Miscellaneous Other
Golden Lotus Restaurant
Restaurants
Hughes Markets
Food Markets
Green Hills Memorial Parkinc
Miscellaneous Other
Intl House Of Pancakes #956
Restaurants
Green Hills Mrturymemrlchapel
Miscellaneous Other
Jack In The Box
Restaurants
Hughes Markets
Food Markets
Kragen Auto Parts# 1649
Auto Parts/Repair
Jack In The Box
Restaurant
Los Verdes Country Club
Restaurants
Kragen Auto Parts
Auto Parts/Repair
Marshalls #1026
Apparel Stores
Los Verdes Country Club
Restaurants
Mobil Service Stations
Service Stations
Marie Callender 35
Restaurants
Rolling Hills Plastics, Inc
Light Industry
Mobil Service Stations
Service Stations
Smart & Final # 306
Food Markets
New York Food & Catering
Restaurants
Terranea Resort
Restaurants
Ocean Trails Golf Club
Restaurants
The Admiral Risty
Restaurants
The Admiral Risty
Restaurants
Trader Joe's #233
Food Markets
The Brixey Corporation
Office Equipment
VH Property Corp.
Miscellaneous Retail
Trader Joe's Company
Food Markets
Source: SBOE data, MuniServices, LLC
Top Sales Tax Producers listed in alphabetical order.
141
Employer
Palos Verdes Peninsula Unified School District (1)
Terranea Resort Hotel
Trump National
Marymount College
Ralphs
Keller Williams Realty
Belmontcorp Ltd
Green Hills Memorial Park
American Golf Corp
Trader Joe's
Palos Verdes Peninsula Unified School District (1)
Marymount College
Keller Williams Realty
Belmontcorp Ltd
American Golf Corp
Bally Total Fitness Corp
Salvation Army
Remax Palo Verdes Realty
Pie Rise Ltd
Remax Execs
Subtotal of Principal Employers
Total City Employment (2)
City of Rancho Palos Verdes
Principal Employers
Current Year and Three Years Ago
Source: Direct Contact with Local Businesses.
l: The number shown represents the total employee count for the entire District. The District does not
track employees by location.
2: Total City Employment provided by EDD Labor Force Data.
Note: There is currently no agency or service that monitors employees by business located
within City limits. All available information is for the greater Los Angeles area. The City is
primarily a bedroom community with very little commercial activity. Data was obtained by
making inquiries with the Community Development Department and the City Manager's office
to determine the entities that are likely the largest employers. Then those likely employers
were contacted directly to determine the number of employees. This data is not available prior
to 2007.
142
2010
2007
Percentage
Percentage
of Total City
of Total City
Employees
Rank
Employment
Employees
Rank
Employment
1,970
1
9.90%
730
2
3.67%
300
3
1.51%
195
4
0.98%
115
5
0.58%
112
6
0.56%
94
7
0.47%
85
8
0.43%
70
9
0.35%
54
10
0.27%
2000
1
9.09%
170
2
0.77%
112
3
0.51%
97
4
0.44%
60
5
0.27%
50
6
0.23%
43
7
0.20%
37
8
0.17%
30
9
0.14%
29
10
0.13%
3,725
18.72%
2,628
11.95%
19,900
22,000
Source: Direct Contact with Local Businesses.
l: The number shown represents the total employee count for the entire District. The District does not
track employees by location.
2: Total City Employment provided by EDD Labor Force Data.
Note: There is currently no agency or service that monitors employees by business located
within City limits. All available information is for the greater Los Angeles area. The City is
primarily a bedroom community with very little commercial activity. Data was obtained by
making inquiries with the Community Development Department and the City Manager's office
to determine the entities that are likely the largest employers. Then those likely employers
were contacted directly to determine the number of employees. This data is not available prior
to 2007.
142
City of Rancho Palos Verdes
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Source: City Budget documents and Payroll records
143
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Function
General Government
41
42
45
45
45
47
50
55
58
53
Recreation Part -Time
10
10
10
10
10
10
10
10
11
19
Total
51
52
55
55
55
57
60
65
69
72
Source: City Budget documents and Payroll records
143
City of Rancho Palos Verdes
Operating Indicators by Function
Last Nine Fiscal Years
Fiscal Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
Function
Administration
Employee Resignations
4
-
5
4
4
4
8
4
9
Workers Compensation Claims
3
2
2
3
4
2
4
2
5
Liability Claims
14
14
14
18
31
14
16
13
13
Budget Adjustments
35
30
27
36
48
32
26
18
21
Business Licenses Issued
1,600
1,961
2,102
1,909
1,801
1,837
1,709
1,819
1,629
Web Site Page Views
88,888
119,104
133,481
224,777
1.3 mil
1.6 mil
701,004
3.8 mil
4.4 mil
Public Safety
Part I Crime Rates (per 10,000 population)
138
122
122
101
120
139
123
102
96
Public Works
Solid Waste Diversion Rates
51%
57%
61%
59%
55%
56%
56%
60%
60%
Pavement Rating
80
80
89
89
82
82
DNA
84.5
84.5
Parks and Recreation
Park Events
1,022
915
825
780
937
770
692
825
690
Class Meetings at Parks
1,774
2,134
2,935
2,893
2,856
2,647
2,772
2,708
2,398
Docent Led Nature Hikes
54
45
80
65
62
98
91
105
103
Community Development
Building Permits Processed
1,264
1,327
1,399
1,233
1,382
1,244
1,692
1,404
1,243
Plan Checks
121
150
186
208
163
164
247
226
154
Municipal Code Violations Closed
138
203
214
180
159
162
216
339
138
Source: City Departments
DNA: Data Not Available
The information presented in this table was not collected by the City
prior to Fiscal Year 2002.
144
145
City of Rancho Palos Verdes
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2001
2002 2003 2004 2005
2006
2007
2008
2009
2010
Function
Administration
Computer Workstations
DNA
DNA DNA DNA 81
81
85
91
92
101
Public Safety 1
Public Works
Street Miles
143
143 143 143 143
143
143
143
143
143
Traffic Signals
13
14 15 15 15
15
15
16
16
16
Parks and Recreation
Parks
14
15 15 15 15
16
16
16
16
15
Community Development
Vehicles Used for Inspections
3
3 3 3 3
3
3
5
5
5
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.
145
Tide Pools Aerial View