RPVCCA_CC_SR_2013_03_05_D_Mid-Year_Financial_ReportCrTYOF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Project Manager:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
DENNIS McLEAN,DIRECTOR OF FINANCE &
INFORMATION TECHNOLOGY teD b'rt fJlYl~
MARCH 5,2013
FY12-13 MIDYEAR FINANCIAL REPORT
CAROLYN LEHR,CITY MANAGER c12-
Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION
1)Receive and file the FY12-13 Midyear Financial Report;and
2)ADOPT RESOLUTION NO.2013-,A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES,AMENDING RESOLUTION 2012-43,THE
BUDGET APPROPRIATION FOR FY12-13,TO ADJUST THE BUDGET IN VARIOUS
FUNDS OF THE CITY.
EXECUTIVE SUMMARY
The City of Rancho Palos Verdes continues to experience a stable financial condition.The
City has established a prudent reserve level,while it continues to experience one of the
lowest expenditure levels per capita in the South Bay.The City is receiving a significant
amount of transient occupancy tax (TOT)from Terranea Resort,arrd property tax revenue
remains stable.
If City Council adopts the attached resolution,the revised estimate of excess General Fund
Reserves would be $1,889,884 at June 30,2013.
A summary of the FY12-13 General Fund budget follows.
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FY12·13 Midyear Financial Report
March 5,2013
Page 2 of 11
l---------------...-··l··9lJErellt·••I (.)r()l?osed
I FY12.13 !Budget !Revised
l[~1~tnRfn~,r;~~~9i;i@!!QElill1fti1.,i·,i):!i~!~;1~~·~I§~1f~;1,)!!~~~~l'li!~lil:~.'J~i
Re\enues 24,089,934 24,184,124
Expenditures (19,943,072)(19,623,472)
Net Transfers (4,923,471)(5,323,471)
i§til!q'iillfllilli~lnl~~;~lt;~~i~!$k1;gtll~1111~i~t~1t,'i!I~f'jg?f
:Reser\e Policy •9,971,536 9,811,736
t§!~!l1ililil,I~~lf1{~~f~jr~M~~&%i11~§lltllJ1~1~~tli'liiDI%~
A summary of revised estimated fund balances as of June 30,2013 has been prepared
(see Attachment A -"FY12-13 Combined Summary of Funds -Midyear Financial Report").
During the 2013 budget process,Staff will consider impacts discussed in this report,the
accompanying proposed FY12-13 budget adjustments,and revenue trends and changes.
BACKGROUND
The Municipal Code of the City of Rancho Palos Verdes requires that a midyear review of
the annual budget be presented to the City Council.Based upon Staff's analysis of the
City's financial activities during the first half of FY12-13,there are a number of items for
which the operating budget should be adjusted,as described in this report.Like previous
years,midyear adjustments are a routine practice in conjunction with this report.If the
activity of a partic.ular fund,department or program is not discussed,there is nothing
significant to report and revenues and expenditures are not expected to materially deviate
from the amounts budgeted.
The Summary Schedule of General Fund Revenue is presented below.It is important to
understand that these revenue estimates are based upon Staffs analysis using trend
comparisons with previous years,and reports provided by state,county and local agencies.
It should be noted that future economic activity,legislation and policy decisions,as well as
any other unforeseen circumstances could affect the City's revenue stream for the
remainder of FY12-13.The midyear financial report also includes discussion and analysis
of anticipated expenditure variances and other relevant developments related to the FY12-
13 budget.
Staff has included the "FY12-13 Combined Summary of Funds -Mi9year Financial Report"
(Attachment A)to summarize the estimated FY12-13 activity and ending fund balances for
all funds within the City.The schedule includes revised revenue and expenditure
estimates based on the adjustments proposed in this rep9rt.
DISCUSSION
General Fund Revenue
Some revenue sources are difficult to estimate such as utility users'taxes and permit fees.
These types of revenues are predicated on conditions outside the City's control.As an
example,planning and building permit revenues will fluctuate with the economy and
housing activity,as well as other conditions such as the weather.Additionally,several
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FY12-13 Midyear Financial Report
March 5,2013
Page 3 of 11
significant franchise tax revenues are received annually after preparation of the midyear
report.For these revenues,Staff has either reported FY12-13 estimated revenues as the
bUdgeted amount or a conservative figure based on the amount of information currently
available.
Schedule of General Fund Revenue:
Property tax
Property tax in lieu of vehicle license fees
Property tax in lieu of sales tax
Property transfer tax
Sales tax .
Transient occupancy tax
Franchise taxes
Utility user taxes
Business license tax
Golf tax
Planning,building &safety,and other permits
Fines and forfeitures
Interest earnings
Other use of money and property (rents &leases)
Charges for seflAces
Intergovemmental (grants &vehicle license fees)
Other revenue
6,075,623 $
3,605,510
541,717
272,802 i
1,448,508
3,349,015
1,881,163
2,333,440
700,156
398,226
1,806,147
159,488 !
46,421
708,052 (
145,924
6,365
192,300
6,289,800 $6,254,525 (35,275)
3,714,000 3,694,230 (19,770)
558,260 453,908 (104,352)
210,000 I 284,994 .74,994
1,574,200 I 1,552,571'(21,629)
3,211,074 3,617,605 406,531
1,877,000 '1,919,694 42,694
2,415,000 2,385,260 (29,740)
695,000 718,710 23,710
409,000 415,099 6,099
1,962,400 1,812,000 (150,400)
200,200 83,459 (116,741)
60,000 44,000 (16,000)
556,300 574,500 18,200
75,300 139,284 63,984
22,312 i 22,312
Overall,General Fund revenue is expected to exceed the current FY12-13 budget by about
$120,000,primarily attributable to an increase of TOT revenue from Terranea Resort
beyond budgeted expectations offsetting some expected unfavorable variances.
Discussion and analysis regarding General Fund revenues is presented below.
Staff does not recommend budget adjustments for immaterial anticipated variances.If a
particular revenue source is not discussed,there is nothing significant to report and
anticipated revenues are not expected to materially deviate from the FY12-13 budget.
Property Tax in-lieu of Sales Tax
During FY12-13,the state made a true-up adjustment to the property tax in-lieu of sales tax
to offset an over-distribution in FY11-12.To compare,theFY10-11 property tax in-lieu of
sales tax was $431 ,487.
Transient Occupancy Tax (TOT)
The Terranea Resort is the primary source of TOT revenue for the City.At the time the
FY12-13 revenue budget was prepared,Staff used a 1.5%growth assumption (based on
April 2012 CPI).Based on information received through January,Staff expects that FY12-
13 TOT revenue will likely exceed $3.6 million.Staff recommends increasing the General
Fund revenue budget by $400,000.
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FY12-13 Midyear Financial Report
March 5,2013
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Planning Permits
Planning and zoning permits decreased by about 11 %from FY1 0-11,and plan checks
decreased by about 15%.The FY11-12 budget prepared in May 2011 was based on
FY1 0-11 activity and did not anticipate the decrease in activity.
Fines &Forfeitures
The decrease in court fine revenue is primarily the result of a policy shift for patrol cars to
be more visible to motorists in order to avoid speed traps,and for the Sheriff to increase
patrol of residential areas to help reduce personal property burglaries.
Revenue Adjustment Summary
Staff recommends revenue adjustments totaling $94,190,which would increase the
General Fund revenue budget to $24.2 million (a 0.4%increase to the budget,and a 2.2%
increase from FY11-12).The additional revenue is primarily driven by activity at the
T erranea Resort.
General Fund Expenditures &Transfers
Per the City's Municipal Code (section 3.32.080),budgetary compliance is determined by
program.There are 32 expenditure programs in the General Fund budget.As there are a
number of programs with expenditures that fluctuate with unforeseen circumstances (e.g.
weather,claims and litigation),there has been a long-standing practice to prepare
conservative expenditure budgets and minimize the burden of numerous immaterial budget
adjustments to ensure budgetary compliance.
For the last 13 fiscal years,the City has experienced total General Fund favorable
expenditure variances ranging from about $0.4 million to $1.1 million.When spread across
30 expenditure programs,favorable variances have averaged from about $13,000 to
$35,000 per program or about 0.2%of the total General Fund expenditure budget.
It is Finance Staff's opinion that conservative budgeting is best management practice,and
in the best interest of the City.Staff has analyzed FY12-13 General Fund expenditures to
date,and has determined that a number expenditure budgets warrant adjustment.A
discussion of proposed adjustments follows.
Salaries &Personnel
The Information Technology,Assistant Engineer,and Recreation Director positions have
been vacant for the entire fiscal year and were budgeted to begin by October 1st (budgeted
for 9 months of the fiscal year).Management Staff does not expect to fill these positions
before April 1st .Therefore,Staff recommends decreasing the General Fund expenditure
budget by $200,150 for the salary and benefits savings (6 months of savings).
The Administrative Staff Assistant in the Community Development Department retired prior
to the end of December 2012.The Department is currently utilizing a temporary agency to
partially cover the position duties.Staff requests an adjustment to move $26,000 of budget
from the salary account to the professional services account (net impact of $0),and toD-4
FY12-13 Midyear Financial Report
March 5,2013
Page 5 of 11
recognize employee benefits savings of $11,850.
The City prepaid its employer contribution to the pension plan for FY12-13,which garnered
a 3.66%cash discount.Staff recommends an adjustment to decrease the pension
expense budget by $30,400 to recognize the savings ($29,200 in the General Fund and
$1,200 in other funds of the City).
If City Council approves the recommendation,the corresponding·adjustments totaling
$84,700 for the benefits portions of these requests will be made in the Employee Benefits
fund,with a net impact of $0 (decrease both revenue and expense in the fund).
Administration City Clerk Program
The City Clerk would like to convert aged VHS tapes of City Council meetings,Planning
Commission meetings,and public service announcements to DVD.The cost of this
conversion is estimated to be about $2,000,and Staff requests an adjustment to increase
the budget accordingly.
Administration Community Outreach Program
Staff requests to increase the Community Outreach budget by $2,000 for the City
Newsletter (additional postage for additional pages)and $1,000 for the printing of
additional "No Solicitation"signs for public distribution.
Public Safety Sheriff Program
Each year the bUdget is based on an estimate of contracted services.Actual expenditures
for FY12-13 are expected to be about $4.2 million vs.the $4.3 million in the budget.Staff
requests an adjustment to decrease the budget by $100,000 to reflect the savings.
Finance Program
The county charges a property tax administration fee for calculating and distributing
property tax revenue to the City.A recent lawsuit against the county by a group of cities
resulted in the county changing the way it calculates the property tax administration fee.
Staff requests an adjustment to decrease the bUdget by $50,000 to reflect savings for this
expenditure.
Public Works Traffic Management Program
Traffic engineering consultant services are needed to prepare and submit the Highway
Performance Management System and Congestion Management Program reports to the
state.Staff requests an adjustment to increase the professional services budget by
$10,000.
Community Development Planning Program
Staff requests an adjustment to increase the printing budget by $10,000 to print documentsD-5
FY12·13 Midyear Financial Report
March 5,2013
Page 6 of 11
related to the Trails Plan Update.
Community Development Building &Safety Program
Staff requests an adjustment to increase the rental budget by $2,400 to provide for offsite
storage of BUilding &Safety records.
Community Development View Restoration Program
During FY12-13,there have been two extraordinary City-tree trimming cases that
necessitate an additional appropriation of $21 ,200 for the View Restoration program.
Recreation Special Events Program
I
The City's 40th Anniversary event has been moved from autumn 2013 to May 2013,which
moves expenditures from FY13-14 into FY12-13.The existing FY12-13 budgetforthe40th
Anniversary event only included a small amount of supplies to be purchased prior to the
end of the fiscal year.As the date of the event has been moved forward,Staff requests an
adjustment to increase the FY12-13 bUdget by $23,000 to provide for the full cost of the
event.
General Fund Transfers to Other Funds
Per the City Council's Reserve Policy,Staff recommends an adjustment to increase the
transfer amount from the General Fund Reserve to the Capital Improvement Projects (CIP)
Reserve by $400,000,to coincide with the additional expected Transient Occupancy Tax
noted above.
Summary of Proposed General Fund Adjustments
fRe\e'nue adjusfme'nts-'''''''''''''''-'-'..-.--...'-.....-.1"$.····94~196i
~~~!!~-.~.p.~r~?~.6~L~~p~~~B~.~~::~~~!t~~6t~",,.............::?~.I,?Q.Q.J
l ()~~~E ~.l<p~~dl!u.~~.~~lu..~!~~,~~~.,''7~!tJQO ...
•Increase of transfer to CIP Reserve (400,000)'
·~I~~liliiitj)lfll(l!tItil~~mJ1lml~11;.~tlllflffi
OTHER FUNDS OF THE CITY
This section discusses other revenues and expenditures ofthe City.Each of the following
recommended adjustments has been incorporated in the FY12-13 Combined Summary of
Funds -Midyear Financial Report (see Attachment A),which includes the revised fund
balance estimates for June 30,2013.Again,if the activity of a particular fund is not
discussed,there is nothing significant to report and actual activity is expected to
approximate the FY12-13 budget.
Beautification Fund
Per City Council direction on November 20,2012,Staff requests to reduce the Recycling
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FY12·13 Midyear Financial Report
March 5,2013
Page 7 of 11
revenue budget by $148,000 for FY12-13,and eliminate the $75,000 appropriation for the
Neighborhood Beautification Grant program.
Proposition A Fund
The FY12-13 budget includes an appropriation to construct 2 bus shelters with Proposition
A money.A change order to move the bus shelters from their original location is needed to
accommodate the Salvation Army Trail project.Therefore,Staff requests an adjustment to
increase the appropriation in this fund by $7,800 to provide for the change order.
Abalone Cove Sewer District Fund
There are more than 40 grinder pumps that support the Abalone Cove sewer system.
Three additional pumps have failed and need to be replaced at an estimated total cost of
$6,000.The pumps are at the end of their useful lives and can no longer be repaired.
Staff requests an adjustment to increase the appropriation in this fund by $6,000,which
can be absorbed by the available fund balance.
Community Development Block Grant (CDBG)
The City has an unallocated CDBG balance with the Community Development Commission
(CDC)in the amount of $4,098.Staff requests both revenue and expenditure adjustments
to appropriate the additional $4,098.The net effect to the fund is $0.
Status of Major Capital Improvement Projects
Street Improvements
Residential Street Paving Projects (total combined budget of $4,801,403)
About $3.2 million of this budget represents the FY10-11 and FY11-12 programs that were
carried forward to FY12-13.Construction began January 2013 and is expected to be
completed by August 2013.Staff requests an adjustment to increase the appropriation by
$11,015 to reflect additional TDA Article 3 funding available for construction of access
ramps as a part of the project.
The remaining $1.6 million of the budget is expected to be carried forward to fund the
FY12-13 program during FY13-14.Staff expects to advertise for bids in April 2013,with
construction to begin in August 2013.
Arterial Street Paving Project (budget of $2,380,000)
The design for this project is nearly complete,and Staff expects to advertise for bids in
March 2013 with construction to begin May 2013.
Hawthorne Blvd Pedestrian Improvements (budget of $1 ,282,763)
This project is to be funded with more than $1.1 million of federal money.The design for
this project has been completed and a request for federal authorization to proceed was
submitted in November 2012.Staff hopes to receive approval in the near future,at which
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FY12-13 Midyear Financial Report
March 5,2013
Page 8 of 11
time Staff will advertise for bids.
Palos Verdes Drive South Bikeway Safety Improvements (budget of $793,885)
The original scope ofthis project included bike lanes through the landslide area.In light of
significant road maintenance activity in this area,the City Council approved Staff's
recommendation to amend the scope and move the project outside of the landslide area.
Staff is awaiting approval from Metro for the amendment request before proceeding.
Hawthorne Blvd Traffic Signal Synchronization (budget of $779,525)
Staff has prepared a Request for Proposals for the design of this project.
Arterial Median Improvements (total combined budget of $723,690)
This budget includes $473,690 for median improvements on PVDW and $250,000 for
median improvements on Hawthorne (Via Rivera to City Hall).Both projects are currently
on hold,pending further evaluation during the two-year budget process;which is expected
to include an analysis of median maintenance costs and direction from the City Council.
Palos Verdes Drive East Early Action Traffic Safety Improvements (budget of $273,114}
The design has been completed and Staff is in the process of advertising for bids.
Construction is expected to begin by the end of March 2013.
Park &Open Space Improvements
Abalone Cove Shoreline Park Improvements (budget of $665,176}
The preliminary design for this project is in process.Staff expects the project will be
carried forward to FY13-14 and completed by June 2014.
California Coastal Trail (budget of $518,923}
This project is primarily funded with a $500,000 grant.The design for this project has been
completed,and Staff has received approval from the state to proceed.The grant funding
requires the project to be completed by December 2013.
Staff expects the final cost of this project to increase by about $200,000 and will request a
budget adjustment as necessary when presenting the contract recommendation to City
Council.If additional funding is needed,it will likely need to come from the CIP Reserve for
Future Projects.The project will not proceed without City Counci,I'authorization,and no
budget adjustment is requested at this time.
Ryan Park Restrooms (budget of $267,512}
Staff expects this project will be completed by June 2013.
Ryan Park Southern Entrance Improvements (budget of $229,647)
The original scope of this project has been modified to include the construction of a
retaining wall to add 30 new parking spaces.Based on this modification,the cost estimate
for the project has increased to $678,000 for one alternative or $503,000 for another
alternative.Staff is currently reviewing the design alternatives,and expects to present
options to the City Council in July 2013.The project will not proceed without City Council
authorization,and no budget adjustment is requested at this time.D-8
FY12-13 Midyear Financial Report
March 5,2013
Page 9 of 11
Gateway Park Development (budget of $200.000)
This project will enhance public amenities on PVDS for trail hiking,which is in the same
area as another planned project to re-align PVDS.Staff is working to resolve any possible
conflicts between the two projects before proceeding with design.
Eastview Park Playground Improvements (budget of $185,565)
The project has been completed.
Lower Hesse &Grandview Park Improvements
The budget for these projects was not carried forward from FY11-12 to FY12-13 based on
feedback from the City Council.However,Staff requests an adjustment to increase the
CIP budget by $36,000 to continue work with the consultant to incorporate public
comment~into the final Mitigated Negative Declarations (MND's)in accordance with City
Council approval on April 19,2011.
Other CIP Expenditures
The City was required to return $3,541 of Federal Emergency Management Agency
(FEMA)funding as result of closing out the final audit for the FY04-05 winter storms.The
CIP Reserve included $215,209 for this purpose.Staff requests an adjustment to increase
the CIP expenditure budget for this disbursement.
Storm Drain Improvements
Storm Drain Lining (budget of $1 ,323,665)
A portion of this budget was programmed to Miraleste Plaza Storm Drain improvements.
That project was completed for a cost of about $240,000.Construction of the remaining
Storm Drain Lining improvements began in August 2012 and is expected to be completed
by June 2013.
Storm Drain Master Plan (budget of $727,789)
The Master Plan report has been completed.Staff expects to release a Request for
Proposals in April 2013 for implementation of the Plan.
PVDE Vickery Canyon and San Pedro Canyon Improvements (total combined budget of
$797,940),
The design for the combined project is complete.Staff expects to advertise for bids in May
2013.
PVDE Lower Switchbacks (budget of $485,000)
Prelimin;:iry design issues have been resolved,and Staff expects to recommend award of a
design contract in April 2013.
Lower San Ramon Canyon Stabilization (budget of $191 .867)
The design has been completed and construction bids were opened in January 2013.Staff
expects to make a construction contract recommendation to City Council on March 19,
2013.
D-9
FY12·13 Midyear Financial Report
March 5,2013
Page 10 of 11
Funding Transfers for Projects Continued From FY11·12
With City Council approval on September 18,2012,a number of FY11-12 projects were
carried forward to FY12-13 as a matter of routine.Some of these projects are to be funded
with restricted monies transferred from other funds.Staff recommends the following
housekeeping adjustments to the FY12-13 transfer budget to reflect the sources
associated with each project.
~Transfer $90,000 from the 1911 Act Fund to the Street Maintenance Fund for the
traffic signal battery backup project.
~Transfer $473,690 from the Beautification Fund to the CIP Fund for Arterial Median
Improvements.
~Tr~nsfer $1,306,927 from the Proposition C Fund to the CIP Fund for the Arterial
Street Paving project.
~Transfer $364,000 from the Measure R Fund to the CIP Fund for the Arterial Street
Paving project.
~Transfer $35,954 from the Bikeways Fund to the CIP Fund for additional access
ramps as part of the Residential Street Paving project.
~Transfer $150,000 from the Measure A Fund to the CIP Fund for the Eastview Park
Playground Improvements.
Grant Revenue for Projects Continued from FY11·12
Staff recommends the following housekeeping adjustments to the FY12-13 revenue budget
to reflect the grant revenue associated with the following projects carried forward from FY1-
12:
~Federal CDBG grant of $70,000 for the Blackhorse ADA compliance project;
~Federal STPL money in the amount of $362,000 for the Arterial Street Paving
project;
~Federal HSIP grants of $706,979 for the Hawthorne Blvd Traffic Signal
Synchronization project and $252,000 for the PVDE Early Action Safety
Improvements project;
~Metro TIP grants of $1,141,600 for the Hawthorne Blvd Pedestrian Improvements
project and $630,000 for the PVDS Bikeway Safety project;
~Land and Water Conservation Fund grant of $332,588 for Abalone Cove Shoreline
Park improvements;
~California Coastal Conservancy grant of $250,000 for the California Coastal Trail
project;
~Grant revenue of $160,000 planned for Gateway Park Development;
~TDA Article 3 money of $26,204 available for additional access ramps to be
constructed as part of the Residential Street Paving project;and
~Measure A revenue of $150,000 for the Eastview Park Playground Improvements
that were recently completed.
D-10
FY12-13 Midyear Financial Report
March 5,2013
Page 11 of 11
RESERVE POLICIES
The following chart summarizes the status of the City's reserves.Reserve deficiencies will
be addressed during the 2013 budget process.
(28,494)
22,359
487,737
1,730,084
106,475
772,359
1,014,137
11,701,620
13,996,423:10,784,755
526,400
134,969
750,000
9,971,536
3,211,668 i·······..··.1
General Fund
Street Maintenance
elP
50%of budgeted annual
expenditures
One year c)(PortugueseBencl road .
maintenance
Emergency projects 0($50,000 and
future maintenance endowment of
$84,969
.De\eloper endowment
,Emergency'orfutureprojects of $3
;million and FEMA of $211,668
'••,-_.",..""""_)._~""_'"_"'_.'_"_.....'."0_,."'".".,'".',,,••"H·.·....·."',-...·,-..,.•'.-•...,,","'.'.,•.~..._.._,_.,....~
:Estimated replacement cost of
t~_g':!P'!1~~~.~~!~~I:l!l:1.~~.~.i~.~.s.~~.s...~.~J~...__.......__.._...1-'~ZO'!26§J '"..1,!?O,?~8!..(1 ~~,978)
Habitat Restoration
;.~~~~~Qio~.1
In the interest of fiscal accountability,Staff has prepared a Schedule of Capital
Improvement Projects Reserve Balance that includes all additions and subtractions since
its inception (see Attachment C).Staff and the City's Financial Advisor,Tim Schaefer of
Magis Advisors,have embarked on development of an infrastructure financing plan
including the San Ramon Canyon Stabilization project.Although the City continues to
maintain its reserve thresholds,future infrastructure replacement will likely outpace the
annual TOT revenue received from Terranea Resort.
FISCAL IMPACT
Except as discussed above,all other estimated revenues and expenditures are expected to
approximate the budget in all funds of the City for FY12-13.The estimated fund balances
presented in the FY12-13 Combined Summary of Funds -Midyear Financial Report
(attachment A)includes the effects of the budget adjustments recommended within this
report.
Attachments:
Resolution No.2013-
A -FY12-13 Combined Summary of Funds -Midyear Financial Report
B -FY12-13 Statement of Estimated General Fund Reserves
C -Schedule of Capital Improvement Projects Reserve Balance
D-11
RESOLUTION NO.2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES,AMENDING RESOLUTION 2012-43,THE BUDGET APPROPRIATION
FOR FY12-13,TO ADJUST THE BUDGET IN VARIOUS FUNDS OF THE CITY
WHEREAS,on June 19,2012,the City Council of the City of Rancho Palos Verdes
adopted Resolution 2012-43,approving a spending plan and authorizing a budget
appropriation for FY12-13:and
WHEREAS,certain FY12-13 revenues,expenditures and operating transfers,as
described in the Midyear Financial Analysis and identified below,are expected to
deviate from the amount budgeted;and
WHEREAS,the City Council desires that the FY12-13 budget be adjusted.
BE IT,THEREFORE,RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
The following adjustments are made to the FY12-13 budget
r.Gii.ieri~\qiw..ra~i~~ifu~ji:afi}~~'iil~{~Jif;fg:6,l1'~fi@~:r.%w£rf!¥¥~¥~~~~t~~~£:~&~~glt1t¥i@fi??ffi~~~~~~y..::;'~::~..y;~~f.1m~st1tJI;W'h2-~'m~?_mli(~~~;;~;;;?,,;'~3~~~d~._:;~~~f{~~;0k;j1~::yWXl-;:xf~~~;~!,gA;~~;:r$-h~~~fiiif;@~:f2b~~fi;:{;;~:~~~~l$;!::fx~::;~Q
[Property tax ............:101-6000-311~10-00'.(35,000);
r~f~e~~tI~~..I~:!I~.~·.~t~J1X~i~.:I!~.~~~i!~~~·:··.·····:·'·::··iJQj3~22·2:~1_?~~Q:QO ...:"··.....(1~,?~0)J
iProperty tax in lieu of sales tax ,101-6000-312-20-00 "(104,352)rp'ropertytra·nsfertax····."'1'of:60'ob:318~f6~6oT ...75,OGb
Saiestax .-,..··101:.s0()0::313::16~O()·(22,600),
Transient occupancy tax 101-6000-31.4-10-00 400,000
EDCO franchise tax 101-6000-317-40-40 29,000
EDCO franchise tax -stormwater 101-6000-317-40-45 11,000
Southern California Gas Co.101-6000-315-30-20 (30,000)
Business license tax 101-2020-316-10-00 23,000
~Ianningpe~mits 101-4001-3.~2-10-00 (40,000)
iPlan checks 101-4002-323-10-00 (75,000)
jBuilding permits .101-4002-323-20-00 .(20,000),j'i=Tnes""andfOrteitures ....~101~102"1~351~10~()()'(115,'000)'
[~~:~li~.:W~f~~.·~~~i~~~.ri.~~t.~~s ..'.1g1~32g1~~~4.~!Q:gQ ....40,000
:Vehicle License Fees ;101-6000-335-10-00 '22,312
.Successor Agency administration 101-6000-381-40-00 (45,000)
;,~y~(~lli;fJ,~l1~j~~ln9;llt,iji!l~ll~l,~~!i'~Rii·~;@$1\~~l3[i~E~r~il~iB!!'i~!£'~r!:;i;j:f~)f;j:~~~~ii~i!~!(ii:~1:t~~it~~~:~t~;i[~[if~~f.q~,
D-12
!liiii!,rflq~~~lilill;ltl@I.gii~l.l;i~ltJirJrl~J~qlli;nIj~j[t~ii@~f~lfrJ~Mm~r~J;}~~~~i,
Information Technology Salaries 101-2030-411-11-00 (45,800)
Information Technology Employee Benefits161-2030-4f1~2e~60 "(11,800)'
Public Worl<sAdministrationSalaries 101-3001-431-11-00 (42,360)
Public Works Adrninistration Emp'loyee Benefits 101-3001-431-29-00 (11,500)
Planning Salaries 101-4001-441-11-00 (26,000)
Plannin_g ProfElssional.Sel"Jices 101-4001-441-32-00 26,000
Recreation Administration Salaries 101-5010-451-11-00 (69,600)
"RecreationAdminisiratlon'Ernployee Benefits'101-5010-451-29-00 .(19,150)
City Manager Ernployee Ben'eflts ......101-1002-411.29-00 (3,600)
i City·Clerk-·Em·pioyee·Senefiis-..··.'101'~1 004-411.29-00 .(1,700)
:pers·on..neiE-rilployee..Be·rieflts·..··'•....~.......••......101 ~1·b11-41·f29'-06 ,..(eob)
Emergency'Preparedness Employee 'Benefits ...'101-1 026-42f2'e~oo '(200)
Finance Employee Benefits 101-2020-411.29-00:(4,000),
InformationTechnology Employee Benefits .101-2030-411:29-00 '(100)
Public'wor1<s'Adrninistl"ation'Ernpl()yeeBenefits 101~3001-431.29-00 Cl,3(0)
Plannin~Employee Benefits 101-49~1-441.29-00 (4,900)
,Planning Employee Benefits.101-4001-441-29-00 (11,850)
:Building &Safety Employee Benefits 101-4002-441.29-00 (2,100)
[.~i~~~§~6I?!~~!il ..~~_·tiilEI~¥~~.:~_~~~~I~,:.••.••'.......•..-:::.'''..191-4.g9..~~41·.29-00 ..(800)
lYie"Y-.~~.~!~~~!.~~.~..~~e.I.?y~.~.~e~_El~ts _,;..~_g~.~99~~~1:.?9:9.9 (1,1 00)
(Recreation Administration Employee Benefits 101-5010-451.29-00 (1,100)
:Rec;reation Fadlities ErnployeeBenefits .101-5030-451.29-00 ..
PVIC Benefits 101-5060-451.29-00
City Clerk Professional Sel"Jices 101-1004-411-32-00 2,000
Sheriff Professional Sel"Jices 101-1021-411-32-00 (100,000)
Finance Professional Sel"Jices 101-2020-411-32-00 (50,000)
,Traffic;Managemei£Professior1afseNices'.i161~3606-431 ~32~OO ..10,000~._____••---_.-.---..........«.-••~--+__q •••-_.«..
!~~~!.B!:~~C?~~!on~_~J~!~~~~5:.e_._J19.!.~O'Q~~~.!~~~9.2..1...?1.~90 ..
L~~i~~i~~~._~~f~t.~_~~i!~J.~~~~~!~.'...«._.]1 g1~Q02~4~~~~!O .,2,400
ICommunity Outreach Postage :101-1005-411-53-00!2,000
l,-.."~-,,_~_·.,.•'"~._._,••>..KK"··_""_"'_•._~,,.._"._....,..,,__,_.",'''.__-_",.._,,,.••.•_.~..,,,',.'.,_.,_...•'__'!~••__.__,~.~_._.".•."..~".~__.•"",,_,.,'."~__"d••"""_."',,.',..,'•...'-,-""""_~".""._.-",-".,-r
!Community Outreach Printing i 101-1005-411-55-00:1,000 :"'_'__"~~«.~_~",_.....,.,..",_,__~~_~._~_~••••._._~.~'••.•,".'_.~__·~_·._'._·<K·.-~-'-~<·~~_.__.~._,,~~...,_,•.~...,.~.~w~_~_~.,._....__.0 K~·.·.··••,,_,-,~__".~,~..·_~"_...I.,•••"..._"._.'.''''•••~K_'_"'~
Plal1l1i.I1!;LP.!i.I1.!il1~..___._..!91~9Q1:i~1=~?-00 i 19,.000 .
Recreation Special Ewnts Supplies '101-5040-451-61-00 23,000
"Beautific;ati()rl_~rTlplote~~em~fit~_.212-3012-431.29-00 (100)
Waste Reduction Employee Benefits 213-3013-431.29-00 (400)
:E~~J?~~~~~.~~~~!·p~st;:i~t ~.~pJ~y._~~~~_rl~fi.~~__??5~30~_~~~1 ..29:90 '(1-90)
;Water Quality Flood Protection Employee Benefits j 501-3052-431.29-00 (600)
l:ijltq'l!tl{gfbrllilll~iJ;lll;l'iIJllr«:'~~[t~gftr~fii~~~l~~i~~[i~t1i~tfl~~r~'fttggll
D-13
(§mj[~9¥lititl@Rili;llnl1l1iil1lil&I~IfJ!Efl@lii~j!§!lI~~rlftl~wi*t~j~~~~t)@~~:;~)lmi;§ll~~~JE?
Employee Benefits Interfund Charge Revenue 685-1015-381-30-00 (84,700).
Employee Benefits-Health Insurance ...:685-101.5:499-21-00!..(22,600»'Emp'ioyeeS"enefiis:-FicA'.....-.-...""······"c.""'i68S:"1015-49e:22:00 ";...--""'2-,"fOO)'
.Employee Benefiis :.Pension ..68S:101'5499=:i3:00 .(30,400),·Em·pioy·ee"Berlefiis ':Pensiol1 "".."......."'"""68s:fo15499:23:00 ".'(26;200)
'~rr.!p~~~·§:~~~ftt~··:"~~!fr.~~~~·C8~~I!h:·~.~~·.~~~~j68s-1q15:-:4.~9:?~:90 '3?,~9q)'
Beautification Recycling Revenue 212-3012-367-10-00 (148,000)
BeautificationCorrlrnunity Grants 212-3012-431-93-00 (75,000)
Proposition A Improvements 216-3016-431-73-00 7,800
Abalone Cove Sewer District Improvements 225-3025-431-73-00 6,000
CDBG Home Improvement Federal Grant Revenue 310-3092-331-10-00 4,098 .
CbBG Homelrn'provementProfessionaJ SerVices .310=3692-461=32-00 4,098
Street Impr0vements 330-3031-461-73-00 11,015
Park 'Improvements 330-3033-461-i3:60 36,000
l;'fra~tr.~~t~·r~A~n1i ~js!r~tion~is"~:E~p.~n~itl.lr~·"33·6:3b36-461~9:00"·3,541
'Mjj<i~l.Jjliii'1j119ILliii"lilII111Itil.iiil.@rl~{~¥JfJit~ui[ff"!~fffiiM
.1911 Act Transfers Out .211-3011-491-91-00 .90,000
Traffic·Signaf~j,-aintel1anceTrans·fe·rs·ln···········202:3004:39·1=10:00···90,000
Beautification Transfers Out •212-3012-491 =91-00 473,690
Proposition C Transfers Out 21 S=301 S-491-91-00 1,306,~27
Measure A Transfers Out ,2'20-3020491:9'1:00 .364,000
Street Improvements Transfers In 330~3631-391~10-00 2,144,617
~ik.~~etY~.rret~.~fers ..C?~!_...,.34g:32~0~91~91-00 ,.35,~64
Street Improvements Transfers In 330-3031-391-10-00 35,964r'Meas'u'rs'j\'Capi"tai Transfsrs~OuC--'"'······•·..·1·3·39:3039491~9I-oo •'1~6:000Ip·ark·IrrlproVements-fransfersTn---..-......·----·-~··-'i33'0:3633:391~1'0~O(f ...."·150;000
~.~".,.".....__,,_.,,'•..•_......~•.•.•.~.••.•.~.-•.,_"~',.-.c.-.,.<.~,_.........._.,~.._~._,~~,••~,..•.__._,_,...,,'..,-~.,."
CDBG ADA Projects Federal Grant Revenue 310-3095-331-10-00 70,000
Street Improvements Federal Grant Revenue 330-3031-331-10-00 362,000
Street Improvements Federal Grant Revenue 330-3031-331-10-00 706,979
Street Improvements Federal Grant Revenue 330-3031-331-10-00 252,000
Street Improvements State Grant Revenue 330-3031-334-10-00 1,141,600
Street Improvements State Grant Revenue 330-3031-334-10-00 630,000
Park Improvements Federal Grant Revenue 330-3033-331-10-00 332,588
Park Improvements State Grant Revenue 330-3033-334-10-00 250,000(Park ·lmprovements·St"ateGrantRswnue···.....;330~3633:334:16:bb ··1so,666
)STkeways'Lociii GrariCRe~nue··"·"·"··""··"···".:340~3040-337:10-00 26,204
[~~~~.~~~:~.~~£~L~~~~f.·~~~6L~~~.6.~~....·.I~~~~~~§3.~:-~3i:~.9:Q9 ,...1?g!QQ9 .
PASSED,APPROVED,AND ADOPTED THE 5th DAY OF MARCH 2013.
MAYOR
D-14
ATTEST:
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.2013-was duly and regularly passed and adopted by
the said City Council at regular meeting thereof held on March 5,2013.
CITY CLERK
CITY OF RANCHO PALOS VERDES
D-15
Attachment A
Restricted by Council Action
BEAUTIFICATION
CIP
EQUIP REPLACEMENT
BLDG REPLACEMENT
EMPl.OYEE BENEFITS
1,065,483 134,060 20,500 916,690 262,353
15,406,941 4,127,467 8,119,403 13,657,388 !-13,996,423-
2,584,088 577,300 60,000 1,451,100 ,1,770,288
943,007 4,100 -------5'479---------~-T------941,628-·
_~....~~•.l_..,.------------90,743 -~896,540--------------1-;-957;200------30,083
i
Restricted by Law or External Agencies I
STREET MAINTENANCE 1,056,896 1,167,560 1,126,000 2,336,319 i 1,014,137.._----.-._-..._-----------------_._---------~--------_·_------------------_·_------I---~--.----.
1972 ACT.78,079 258,390 73,000 200,000 .63,469._--.-----_._---------------_._-------_._-----_.--------~._------------------_._~--_._------------_..
EL PRADO LIGHTING 16,774 1,980 1,000 i 17,754
CDBG (42,447)345,330 .-----302,883 --------r-------::--
1911 ACT 1,670,384 447,300 445,900 203,000 1,468,784
WASTE REDUCTION 268,961 207,340 182,650 52,000 241,651_
AIR QUALITY MANAGEMENT 101,187 50,490 60,000 91,677
PROPOSITION C 1,341,811 489,010 1,796,927 33,894
PROPOSITION A 170,421 646,690 620,000 197,111
PUBLIC SAFETY GRANTS 20,188 100,000 19,600 100,000 1------588--
MEASl.IR~_F3______________......_.__.}91 ~~.§+_.364,610 ____.----------------564;050+----Hl2;536--
HABIT~I RESTORATION ~__146,345 _L 1,130 90,000 131,000 106,475
SUBREGION 1 MAINT 23,559 I 3,800 65,000----70,000-------22",359
MEASURE A MAfNT&cApfTAL(65;685)i''~H5,685 25Q,QQO_~_
AB COVE SEWER DISTRICT .39,itT;46,Io-Q'-'1-6J56----_~9,~QQ .'26,171"
GINSBU-RG CULTURAL ARTSSLDG-f5S;4aoT 790---------:_==-==_~~~r==-=f59,~Z.Q
~~~r::::II::~:_:::TRIB --~..2'040~:::~-~~J=-;;i
BIKEWAYS 61 _~J'§__-==:-~
WATER QUALITY/FLOOD PROTECT 3,531,615
D-16
FY12·13 Statement of Estimated General Fund Reserves Attachment B
Adjustments:
Open Space Acquisition Costs
Proposition A Exchange
Continuing Appropriations
General Plan Housing Element Update
Residential Street Project
FY11-12 Final Results
FY12-13 Midyear Financial Report
9/4/2012
9/4/2012
9/18/2012
11/20/2012
11/20/2012
3/5/2013
3/5/2013
Beginning
Reserves
688,502
1,089,098
94,190
Net Transfers include both operating transfers from and to the General fund.Originally bUdgeted Net Transfers are adjusted when staff becomes aware that
an additional 0 eratin transfer is needed to satisfy an unantici ated shortfall within another fund;and that shortfall must be funded with General fund monies.
Ending Reserves are the estimated 6/30/13 General fund reserves at the time of budget adoption.Adjusted Ending Reserves is a calculation based on
subse uent ad'ustments to Be innin Reserves Revenues Ex enditures and Net Transfers.
D-17
City of Rancho Palos Verdes
Schedule of Capital Improvement Projects Reserve Balance
Attachment C
FY08-09 General Fund Contribution
Actual FY08-09 TOT Revenue
Actual FY09-10 TOT Revenue
Actual FY10-11 TOT Revenue
Actual FY11-12 TOT Revenue
Expected FY12-13 TOT Revenue
Contribution to Upper Filiorum Open Space Purchase (authorized by City
Council on September 15,2009)
Funding for Lower Hesse/Grandview Park Improvements ($2,004,095
appropriated by City Council on June 15,2010,$1,887,620 unspent not
carried forward to FY12-13)
Eastview Playground ($90,000 authorized FY11-12 and $4,920 authorized
FY12-13).
California Coastal Trail (authorized FY11-12)
Gateway Park Development (authorized FY11-12)
Ryan Park Restrooms (authorized FY12-13)
Ryan Park Parking Lot Damage (authorized FY12-13)
Lower Hesse/Grandview MND's (requesting authorization with March 5,
2013 Midyear Financial Report)
FEMA Reserve
$3,000,000
85,245
1,954,507
2,640,368
3,349,015
3,611,074
(374,629)
(116,475)
(94,920)
(60,000)
(40,000)
(267,512)
(29,114)
D-18