RPVCCA_CC_SR_2015_06_16_02_Proposed_FY15-16_BudgetCITY OFi�RANCHO PALOS VERDES
PUBLIC HEARING
Date: June 16, 2015
Subject: Proposed FY 15-16 Budget
Subject Property: Citywide
1. Report of Notice Given: City Clerk Morreale
2. Declare the Hearing Open: Mayor Knight
3. Staff Report & Recommendation: Director of Finance Cullen
4. Public Testimony:
Applicant: N/A
Appellant: N/A
5. Council Questions:
6. Rebuttal:
7. Declare Hearing Closed: Mayor Knight
8. Council Deliberation:
9. Council Action:
Public Hearing
Cover Page
CITY OF t iRANCHO PALOS VE RDES
MEMORANDUM
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM: DEBORAH CULLEN, DIRECTOR OF FINANCE
DATE: JUNE 16, 2015
SUBJECT: PROPOSED FY15-16 BUDGET
REVIEWED: DOUG WILLMORE, CITY MANAGER
Project Manager: Kathryn Downs, Deputy Director of Finance
RECOMMENDATION 1
1) Determine that the utility users' tax (UUT) rate of 3% continues to be a necessary
General Fund revenue source, and that the current rate of 3% should be
maintained; and
2) ADOPT RESOLUTION NO. 2015- , A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET
APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL
IMPROVEMENT BUDGET FOR FISCAL YEAR 2015-2016.
DISCUSSION
The proposed FY15-16 Budget includes City Council direction provided on April 7, 2015,
May 19, 2015 and June 2, 2015. Each City Council Member has separately received a
copy of the proposed budget document that has been available at City Hall, and on the
City's website for review since June 9th (the draft document has been available since
May 26, 2015). Notice of the public hearing was posted in the Palos Verdes Peninsula
News on June 4th and June 11th
The proposed budget for FY15-16 results in estimated net recurring activity of $113,361
in the General Fund (a balanced budget), and continued General Fund Reserves in
excess of the Reserve Policy threshold as follows:
1
PROPOSED FY15-16 BUDGET
June 16, 2015
Page 2 of 3
General Fund Revenue is expected to increase by about 2.6% from FY14-15, and draft
expenditures are expected to increase by about 3.4%.
City Council Policy No. 45 — Balanced Operating Budget states: "The City Council shall
adopt an annual operating budget where recurring expenditures do not exceed recurring
revenues, and ongoing program expenditures are not funded with one-time revenue
sources." The summary below indicates that the draft FY15-16 General Fund budget is
balanced as required.
FY15-16 General Fund Budget Recurring. ane -Time Tota(
Revenue $ 27,882,209 $ $ 27,882,209
Transfers From Other Funds
Estimated Excess General Fund Reserve
Expenditures
208,000 - 208,000
2,263,842 2,263,842
r
(20, 748, 748) (188, 000) (20, 936, 748)
Transfers to Other Funds (7,228,100) (1,189,203) (8,417,303)
FY15-16 Net Excess General Fund Reserve; $ 113,361 $ 886,639 $ 1,000,000
The draft version of the General Fund budget presented to City Council on June 2, 2015
indicated an estimated General Fund Reserve of $2,189,203 at June 30, 2016. The City
Council directed Staff to include an additional transfer of $1,189,203 from the General
Fund to the Capital Improvement Projects Fund, leaving an estimated Excess Reserve of
$1 million in the General Fund at June 30, 2016.
Summary of proposed FY15-16 City-wide budget, including the General Fund
Estimated Beginning Balances $ 38,106,366 $ - $38,106,366
Revenue 36,585,875 (2,628,394) 33,957,481
Transfers In 10,366,094 (10,366,094) -
Expenditures (32,078,359) 2,628,394 (29,449,965)
Transfers Out (10,366,094) 10,366,094 -
2
Budget
Proposed
FY14-15
FY15-16
Beginning Reserve
$13,839,226
$12,732,216
Revenue
27,186, 961
27, 882, 209
Expenditures
(20,254,842)
(20,936,748)
Transfers In
392,855
208,000
Transfers Out
(8,431,984)
(8,417,303)
Ending Reserve
$12,732,216
$11,468,374'
Policy Level (50% of
Expenditures)
10,127,421
10, 468, 374
Excess Reserve
$ 2,604,795
$ 1,000,000
General Fund Revenue is expected to increase by about 2.6% from FY14-15, and draft
expenditures are expected to increase by about 3.4%.
City Council Policy No. 45 — Balanced Operating Budget states: "The City Council shall
adopt an annual operating budget where recurring expenditures do not exceed recurring
revenues, and ongoing program expenditures are not funded with one-time revenue
sources." The summary below indicates that the draft FY15-16 General Fund budget is
balanced as required.
FY15-16 General Fund Budget Recurring. ane -Time Tota(
Revenue $ 27,882,209 $ $ 27,882,209
Transfers From Other Funds
Estimated Excess General Fund Reserve
Expenditures
208,000 - 208,000
2,263,842 2,263,842
r
(20, 748, 748) (188, 000) (20, 936, 748)
Transfers to Other Funds (7,228,100) (1,189,203) (8,417,303)
FY15-16 Net Excess General Fund Reserve; $ 113,361 $ 886,639 $ 1,000,000
The draft version of the General Fund budget presented to City Council on June 2, 2015
indicated an estimated General Fund Reserve of $2,189,203 at June 30, 2016. The City
Council directed Staff to include an additional transfer of $1,189,203 from the General
Fund to the Capital Improvement Projects Fund, leaving an estimated Excess Reserve of
$1 million in the General Fund at June 30, 2016.
Summary of proposed FY15-16 City-wide budget, including the General Fund
Estimated Beginning Balances $ 38,106,366 $ - $38,106,366
Revenue 36,585,875 (2,628,394) 33,957,481
Transfers In 10,366,094 (10,366,094) -
Expenditures (32,078,359) 2,628,394 (29,449,965)
Transfers Out (10,366,094) 10,366,094 -
2
PROPOSED FY15-16 BUDGET
June 16, 2015
Page 3 of 3
Staff recommends the City Council adopt the attached Resolution, approving the
proposed operating and capital budget for FY15-16. The City Manager's Budget
Message will be included in published FY15-16 budget document.
Compliance with Legislative Review Requirements
Utility Users Tax Legislative Review
Municipal Code Section 3.30.190 requires that the City Manager submit to the City
Council an analysis of the revenues derived from the Utility User Tax (UUT) annually.
Based on the needs of the City, the City Council shall determine if any modification to the
tax rate is appropriate or if the UUT is unnecessary. The tax rate cannot be increased
without a majority vote of the residents of the City during a Municipal Election.
The current estimate of FY15-16 UUT revenue is $1.9 million (or approximately 7% of
total General Fund revenue). Based upon the operating and capital needs of the City,
Staff recommends that the current UUT rate of 3% continues to be a necessary General
Fund revenue source to provide current program service levels and CIP funding.
Golf Tax Legislative Review
Municipal Code Section 3.40.140 requires a legislative review of Golf Tax every four
years, to be completed prior to the adoption of the budget prepared for the corresponding
next fiscal year. The Golf Tax ordinance directs the City Council to determine, based on
the needs of the City, if any modification to the tax rate is necessary or if the tax should
be repealed. The City Council performed the required legislative review in 2013 and
determined that the Golf Tax is necessary and that the current rate of 10% be maintained.
The next legislative review is required during 2017. The current estimate of FY15-16 golf
tax revenue is $447,900. Based upon the operating needs of the City, Staff recommends
that the current Golf Tax rate of 10% continues to be a necessary General Fund revenue
source to provide current program service levels and CIP funding.
Attachment:
RESOLUTION NO. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES APPROVING A BUDGET APPROPRIATION AND
ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL
YEAR 2015-2016 (page 4)
3
RESOLUTION NO. 2015-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES APPROVING A BUDGET APPROPRIATION AND
ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET
FOR FISCAL YEAR 2015-2016.
WHEREAS, on June 16, 2015, the City Council conducted an advertised Public
Hearing to receive public input regarding the proposed budget for FY15-16;
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
Section 1: That a revenue and expenditure/expense budget is hereby adopted. The
adopted budget, by fund, is per Exhibit A with a total Estimated Ending Fund Balance of
$41,364,018 for all City funds as of June 30, 2015, exclusive of the City's Improvement
Authority.
A. The City Manager is authorized to transfer certain Budget Appropriation
Balances within functions and/or programs when deemed necessary to do so in
accordance with Chapter 3.32 of the Rancho Palos Verdes Municipal Code.
B. City Council approval will be required for any significant changes involving
increased or decreased service levels.
C. The Director of Finance shall be responsible for constant monitoring of the
budget and shall establish and implement appropriate control mechanisms necessary for
said purpose, after approval by the City Manager.
Section 2: The FY15-16 Revenue Budget is hereby adopted, establishing the
following revenue and internal service fund contribution levels:
GENERAL
$ 27, 882, 209
BEAUTIFICATION FUND
870
CIP
552,570
STREET MAINTENANCE
961,607
1972 ACT
258,895
EL PRADO LIGHTING
2,200
1911 ACT
565,500
WASTE REDUCTION
208,830
AIR QUALITY MANAGEMENT
50,780
PROPOSITION C
638,008
PROPOSITION A
767,149
PUBLIC SAFETY GRANTS
100,190
MEASURE R
478,399
HABITAT RESTORATION
13,010
El
SUBREGION 1 MAINTENANCE
7,200
MEASURE A
105,000
ABALONE COVE SEWER DISTRICT
55,160
GINSBURG CULTURAL ARTS BUILDING
910
DONOR RESTRICTED CONTRIBUTIONS
7,460
QUI MBY
19,030
LOW -MODERATE INCOME HOUSING
9,578
AFFORDABLE HOUSING IN LIEU
4,510
ENVIRONMENTAL EXCISE TAX
2,350
WATER QUALITY/FLOOD PROTECTION
1,391,896
TOTAL GOVERNMENTAL & ENTERPRISE FIND REVENUE
$ 34,083,311
EQUIPMENT REPLACEMENT $ 349,400
EMPLOYEE BENEFITS 2,141,244
TOTAL INTERNAL SERVICE FUND REVENUE $ 2,490,644
Section 3: The FY15-16 Budget is hereby adopted, establishing the following
transfers into the following funds:
GENERAL $ 208,000
CI P 8,782,603
STREET MAINTENANCE 1,035,791
HABITAT RESTORATION 125,000
SUBREGION 1 MAINTENANCE 40,000
ABALONE COVE SEWER DISTRICT 80,700
TOTALOPERATING TRANSFERS IN $101272,094
Section 4: The FY15-16 Budget is hereby adopted, establishing the following
transfers from the following funds:
GENERAL
$ 8,417,303
BEAUTIFICATION
97,791
1972 ACT
200,000
1911 ACT
117,000
WASTE REDUCTION
98,000
PROPOSITION C
526,000
PUBLIC SAFETY GRANTS
100,000
MEASURE A
105,000
DONOR RESTRICTED CONTRIBUTIONS
455,000
QUIMBY
50,000
ENVIRONMENTAL EXCISE TAX
200,000
TOTAL OPERATING TRANSFERS OUT
$10,366,04
Section 5: The FY15-16 Operating and Capital Improvement Budget Programs are
hereby adopted, establishing the following allocations.
R
City Council
$ 129,590
City Manager
894,417
Legal Services
1,030,000
City Clerk
734,176
Community Outreach
79,640
RPV TV
144,320
Risk Management
475,000
Personnel
434,579
Finance
1,271,426
Information Technology - Data
962,413
Information Technology - Voice
80,000
Public Safety - Sheriff Services
5,046,200
Special Safety Programs
145,300
Animal Control
88,000
Emergency Preparedness
186,814
Public Works Administration
2,236,463
Traffic Management
311,000
Storm Water Quality
487,000
Public Building Maintenance
511,200
Parks Maintenance
995,300
Sewer Maintenance
13,100
Planning
1,256,515
Building & Safety Services
773,471
Code Enforcement
211,151
View Restoration/Preservation
294,642
Geology
150,000
Recreation Administration
938,322
Special Events
136,193
Point Vicente Interpretive Center
370,805
Abalone Cove Shoreline Park
64,087
Fred Hesse Jr. Park
165,893
Ladera Linda Community Center
64,153
Robert E. Ryan Park
92,609
Other Recreation Facilities
53,934
REACH
40,190
Recreation Support Services
68,845
SUBTOTAL GENERAL FUND EXPENDITURES
$ 20,935,748
Street Maintenance - Pavement Management $ 819,500
Street Maintenance - Non -Pavement 1,411,279
Traffic signal maintenance 127,000
SUBTQTALSTREET MAINTENANCE FUND EXPENDITURES $ 2,357,779
Aj
•
CIP
1972 ACT
EL PRADO LIGHTING
1911 ACT
WASTE REDUCTION
AIR QUALITY MANAGEMENT
PROPOSITION A
HABITAT RESTORATION
SUBREGION 1 MAINTENANCE
ABALONE COVE SEWER DISTRICT
DONOR RESTRICTED CONTRIBUTIONS
WATER QUALITY/FLOOD PROTECTION
$ 2,517,800
78,200
1,000
459,000
167,683
50,000
621,556
163,000
67,500
134,483
5,000
1,566,116
EQUIPMENT REPLACEMENT $ 477,700
EMPLOYEE BENEFITS 2,289,694
SUBTOTAL INTERNAL SERVICE FUNDS EXPENSES $ 2,767,394
TOTAL EXPENDITURES/EXPENSES, $ 31,893,259
PASSED, APPROVED and ADOPTED the 16th day of June 2015.
ATTEST: MAYOR
CITY CLERK
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, CARLA MORREALE, City Clerk of The City of Rancho Palos Verdes, hereby certify that
the above Resolution No. 2015- was duly and regularly passed and adopted by the said
City Council at regular meeting thereof held on June 16, 2015.
CITY CLERK
7
CITY OF RANCHO PALOS VERDES FY15-16 FUND SUMMARY
FY15 16 Estimated Sources';
Fund0alance
Fund
6/30/20_1.5
Unrestricted~
27,882,209
GENERAL
12,732,216;
Restricted by Council Action
552,570
BEAUTIFICATION FUND
96,921
GIP
11,363,500
EQUIPMENT REPLACEMENT
1,852,612
EMPLOYEE BENEFITS
149,587
Subtotal
13,462,620'
Restricted by Law or External Agencies
2,200
STREET MAINTENANCE
978,378
1972 ACT
42,503
EL PRADO LIGHTING
22,120
CDBG
-
1911 ACT
1,722,059
WASTE REDUCTION
370,436
AIR QUALITY MANAGEMENT
86,487
PROPOSITION C
212,529
PROPOSITION A
31,429
PUBLIC SAFETY GRANTS
20,610
MEASURE R
146,530
HABITAT RESTORATION
1,445,462
SUBREGION 1 MAINTENANCE
802,168
MEASURE A
100
ABALONE COVE SEWER DISTRICT
8,395
GINSBURG CULTURAL ARTS BUILDING
101,421
DONOR RESTRICTED CONTRIBUTIONS
828,531
QUIMBY
2,114,107
LOW -MOD INCOME HOUSING
23,520
AFFORDABLE HOUSING IN LIEU
501,018
ENVIRONMENTAL EXCISE TAX
260,763
BIKEWAYS
72
WATER QUALITY/FLOOD PROTECTION
863,848
Subtotal
10,582,486'_
TOTAL CITY
36,777,322
IMPROV AUTH - PORTUGUESE BEND
280,496
IMPROV AUTH - ABALONE COVE
1,048,548
Subtotal Improvement Authori
1,329,04411
CITY-WIDE GRAND TOTAL
38,106.366
FY15 16 Estimated Sources';
Revenues
Transfers in
27,882,209
208,000
870
-
552,570
8,782,603
349,400
-
2,141,244
3,044,084
8,782,603
961,607
1,035,791
258,895
-
2,200
565,500
(117,000)
208,830
(98,000)
50,780
638,008
(526,000)
767,149
100,190
(100,000)
478,399
-
13,010
125,000
7,200
40,000
105,000
-
55,160
80,700
910
-
7,460
(200,000)
19,030
9,578
1,851,000
4,510
(10;366,094
2,350
1,391,896
5,647,662
1,281,491,
36,673,955
10;272,094
2,520
57,000
9,400
37,000
11,920
9000
r7736,686,876
10 366,094`
FY16-16 Estimated Uses
Expenditures
; Transfers Out S
217,936,748
8,417,303'
(97,791)
(2,517,800)
(477,700)
2,289,694
5,285,194
97,791
(2,357,779)
(78,200)
(200,000)
(1,000)
(459,000)
(117,000)
(167,683)
(98,000)
(50,000)
(526,000)
(621,556)
(100,000)
(163,000)
(67,500)
(105,000)
(134,483)
(5,000)
(455,000)
(50,000)
(200,000)
1,566,116
5,671,317
1,851,000
(31,893 269
(10;366,094
(113,200)
71,900
185,100
32078,359:
(10,360,0941)
Exhibit A
0
18,180,873
1,724,312
617,997
23,198
23,320
0
1,711,559
313,583
87,267
324,537
177,022
20,800
624,929
1,420,472
781,868
100
9,772
102,331
375,991
2,083,137
33,098
505,528
63,113
72
226,816
1.023,048
A