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,
CITY OF
CALIFORNIA
FISCAL YEAR ENDED
JUNE 30,2010
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
..,
I ••..~•• •
•#
Attachment 14-1
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
Attachment 14-2
INTRODUCTORY SECTION
Attachment 14-3
Abalone Cove
Attachment 14-4
CITY OF RANCHO PALOS VERDES
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30,2010
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents
Letter of Transmittal
Directory of City Officials
Organization Chart
GFOA Certificate of Achievement for Excellence in Financial Reporting
FINANCIAL SECTION:
Independent Auditor's Report
Management Discussion and Analysis
Government-Wide Financial Statements
Statement of Net Assets
Statement of Activities
Fund Financial Statements
Governmental Funds
Balance Sheet
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
Statement of Revenues,Expenditures,and Changes in Fund Balances
Reconciliation of the Statement of Revenues,Expenditures,and Changes
in Fnnd Balances to the Statement of Activities
General Fund
Statement of Revenues,Expenditures,and Changes in Fund Balance
-Budget and Actual
Street Maintenance Special Revenue Fund
Statement of Revenues,Expenditures,and Change in Fund Balance
-Budget and Actual
Redevelopment Agency Housing Set-Aside Special Revenue Fund
Statement of Revenues,Expenditures,and Change in Fund Balance
-Budget and Actual
Proprietary Funds
Statement of Net Assets
Statement of Revenues,Expenses,and Changes in Fund Net Assets
Statement of Cash Flows
Notes to the Financial Statements
i-iii
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Attachment 14-5
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
Capital Improvements Capital Projects Fund
Non-Major Governmental Funds
Combining Balance Sheet
Combining Statement of Revenues,Expenditures,and Changes
in Fund Balances
Schedule of Revenues,Expenditures,and Changes in Fund Balances
-Budget and Actual -Special Revenue Funds
Air Quality Management FlUId
Community Development Block Grant Fund
Community Development Block Grant Fund Recovery Act
EI Prado Fund
Proposition A Fund
Proposition C Fund
Measure R
Beautification Fund
Waste Reduction Fund
Public Safety Grants Fund
1972 Act Fund
1911 Act Fund
JPIA -Portuguese Bend Fund
Habitat Restoration Fund
Subregion One Maintenance Fund
Measure A Fund
Abalone Cove Sewer Assessment District
Rancho Palos Verdes TV Channel
Dr.Allen and Charlotte Ginsburg Cultural Arts Building
Donor Restricted Contributions
Schedule of Revenues,Expenditures,and Changes in Fund Balances
-Budget and Actual-Capital Projects Funds
Bikeways Fund
RDA Abalone Cove Fund
Environmental Excise Tax Fund
Quimby Fund
Affordable Housing Fund
RDA Portuguese Bend Fund
Utility Undergrounding Fund
Roadway Beautification Fund
ii
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Attachment 14-6
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
Internal Service Funds
Combining Statement of Net Assets
Combining Statement of Revenues,Expenses,and Changes
in Fund Net Assets
Combining Statement of Cash Flows
STATISTICAL SECTION (Unaudited)
Financial Trends
Net Assets by Component
Changes in Net Assets
Governmental Activities Tax Revenue By Source
Fund Balances of Governmental Funds
Changes in Fund Balances of Govefl11uental Funds
General Governmental Tax Revenues By Source
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property
Property Tax Rates -Direct and Overlapping Govefl11uents
Principal Property Tax Payers
Property Tax Levies and Collections
Debt Capacity
Ratios of Outstanding Debt by Type
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Demographic and Economic Information
Demographic and Economic Statistics
Principal Sales Tax Payers
Principal Employers
Operating lnfonnation
Full-time Equivalent City Govermnent Employees by Function
Operating Indicators by Function
Capital Asset Statistics by Function
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Attachment 14-7
Sail Boats
Attachment 14-8
CITY OF ~RANCHO PALOS VERDES
January 19,2011
Honorable Mayor and City Council
City of Rancho Palos Verdes
Rancho Palos Verdes,Califomia
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 faimess 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 lelter of transmittal
is designed to complement the MD&A and should be read In conjunction with It.
The financiai 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 Slate 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 about43,000.The City is primarily a "bedroom"community
with relatively Iiltle commerciel 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
Attachment 14-9
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 refiect 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 Pian (NCCP)Preserve,implemented a Preserve Traiis Plan and successfuily
acquired the iast major parcel of open space for completion of the habitat preserve.
~The City continued to formaily 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 201 O.
~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 inciuded $5.5 million from the Wildlife Conservation Board;a
contribution of $400,000 from the Palos Verdes Peninsula t.and 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 Juiy 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
Attachment 14-10
»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
»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 Independenc~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
Attachment 14-11
>-The City continued to work with a consuitant to pursue promising grant opportunities.Most notably,the City
received a $500,000 grant from the Coastal Conservancy to improve the portion of the Califomia Coastal Traii
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 201 O.
>-The City conducted an Emergency Preparedness Drill in October 201 0 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 201 O.
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 confomnity 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 Councii,RedevelopmentAgency 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 iegally 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 yea~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 RedevelopmentAgency 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 RedevelopmentAgency 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 NetAssets 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.
OTHER INFORMATION
Independent Audit.The City requires an annual audit by independent certified public accountants.The accounting
firm of Diehl,Evans &Company,LLP conducted this yea~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 controi 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
vii
Attachment 14-12
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 Govemments,and Non-Profit Organizations.For the year ended June 3D,
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 ofAchievement,a government unit must publish
an easiiy 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 Re~orting to the City of Rancho Palos
Verdes for its CAFR for the fiscal year ended June 3D,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,a
Dennis McLean
Director of Finance &Information Technology
viii
Attachment 14-13
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.Miselich,Councilman
Douglas W.Stem,Councilman
•
ADMINISTRATION AND DEPARTMENT HEADS
City Manager Carolyn Lehr
Deputy City Manager Carolynn Petru
City Clerk Carla Morreale
Director of Finance and Infannatian Technology Dennis McLean
Director of Planning,Building and Code Enforcemenl Joel Rojas
Interim Director of Public Works Ray Holland
Interim Director of Recreation and Parks Tom Odorn
City Attorney Richards,Watson &Gershon
IX
Attachment 14-14
CITY OF RANCHO PALOS VERDES
ORGANIZATIONAL CHART
r CITIZENS OF IRANCHOPALOSVERDES
I MAYOR AND CITY COUNCIL I
~
COMMISSIONS &COMMITIEES COMMISSIONS &COMMITIEES
Planning Commission Emergency Preparedness Committee
Traffic Safely Commission Oversight Committee for the Water Quality &Rood
Finance Advisory Committee Protection Program
I I
CITY MANAGER
CITY ATIORNEYAdministration
Personnel/Community Outreach Richards,Watson &Gershon
Risk Management
FINANCE &INFORMATION
CITY CLERK TECHNOLOGYRecordsManagementl-I--Financial Reporting &BudgetPublicInformation
Elections Accounts Payable/Receivable
Payroll
Purchasing
Information Technology
RECREATION &PARKS
Park Facilities Staffing COMMUNITY DEVELOPMENT
Point Vicente Interpretive Center l-I-PlanninglZonlng
Special Events Building &Safely/Geology
REACH Program Code Enforcement
View Restoration
PUBLIC SAFETY PUBLIC WORKSLACountySheriffStreetMaintenanceLACountyFire1-1-RefusefCity Engineering
Animal Conlrol ParWBuilding Maintenance
Emergency Preparedness Capital Projects
x
Attachment 14-15
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 (CAi'Rs)achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
xi
Attachment 14-16
FINANCIAL SECTION
Attachment 14-17
City Hall Emergency Operating Center
2
Attachment 14-18
~DIEHL,EVANS &:COMPANY,LLP
~CERTIAED PUBLIC ACCOUNTANTS &CONSULTANTS
A PARTNERSllIJ'INCLUDING ACCOUNTANCY CORPORATIONS
5 CORPORATE PARK,SUITE 100
IRVINE,CALIFORNIA 92606-5165
(949)399-0600.FAX (949)399-0610
www.dich1cvflDSCOID
January 19,2011
INDEPENDENT AUDITORS'REPORT
The Honorable Mayor and
Members of City Council
City of Rancho Palos Verdes
Rancho Palos Verdes,California
MICIIAEL It LUDIN.CPA
CRAIG W.SPRAKER.CPA
NITIN P.rATEL.CPA
ROBERT J.CAllANAN.CPA
'PIIJLJP II.HOLTKAMP.CPA
'TIIOMAS M.PERlOWSIU.CPA
'IIARVEY J.SCHROEDER.CPA
KENNETH R.AMES,CPA
WILUAM C.PENTZ,CPA
•A I'KOfESSIONI\l.CORPORAnoN
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 fmancial 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 fmancial 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 OFrICES AT;2965 ROOSEVELT STREET
CARLSBAD,CAumRNIA 92008-2389
(760)729-2343 •FAX (760)729-2234
3
613 W.VALLEY PARKWAY,SUITE]30
ESCONDIDO,CALIfORNIA 92025·2598
(760)741·3141 •FAX (760)741-9890
Attachment 14-19
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 intemal 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 intemal 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 ip 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 fmancial 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 fOlming opinions on the fmancial 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 tlle 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
Attachment 14-20
MANAGEMENT'S DISCUSSION &ANALYSIS
5
Attachment 14-21
Emergency Response to Local Fire
6
Attachment 14-22
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 3D,20lO.We encourage readers to consider the infonnation presented here in
conjunction with additional infonnation 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 (UI/restricted
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
FY09-1O;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
infonnation in addition to the basic financial statements themselves.
Government-Wide Financial Statements.The Governmelll-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 Statemellt 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 Statemellt ofActivities presents infonnation 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 (governmelltal 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.
7
Attachment 14-23
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 stann drain
facilities.
The Government-Wide Financial Statements include not only the City of Rancho Palos Verdes itself
(known as the Primary/Govemmem),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 Compollellt Units has been included as an integral part of the primary
government.
The Govemment-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.Governme1l1al 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-tenn 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.Infoonation 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 fonn 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 Proprietaryl 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 Sel1'ice Funds are an accounting device used to accumulate and
allocate costs internally among the City's various functions.The City uses [nternal Service Funds to
account for its fleet of vehicles,computer systems,furniture and equipment,Employee Benefits,and Civic
See independent auditors'report.
8
Attachment 14-24
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 Govemmem-Wide
Financial Statements.
Proprietary Fund Financial Statements provide the same type of infonnation 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 infonnatiol1 for the Enterprise Fund and the
Intemal 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 fonn 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 dala 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
Stalemenls.Combining and individual fund statemenls and schedules can be found on pages 70-122 ofthis
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 $163,468,852 at June 30,
2010.By far,the largest portion of the City's Net Assets (78%)reflects its investment in Capital Assets
(e.g.Land,Inrrastruclnre,Buildings,and Equipment).The City uses these Capital Assets to provide
services to its citizens;consequently,these assets are not available for future spending.
City of Rancho Palos Verdes Net Assets
Gowmmtl1tal B~ness-typc:
Activirirs ActMlirs Tolal
June 30 20]0 )Wl:30 2009 I~30 2010 JtI1e3 2009 IlJle 3 2010 June 30 2009
Currmtllod Otlll:r assets S 48,7<H,:!)2 S 44,072,296 S 2,942,185 S 4,286.089 S 51,646,387 S 48~5~385
CapIlli assetS 115.331.309 107.867.0'KI 12.458.305 12.476.664 127.789.614 120.343.734
Tciolulds 16~0J5 51 t -151.939366 IHOO.490 16762753 179436 001 168.702119
LOOb'-1t:rm liOlbilitics oUlStnnding ~611J,786 7,121,149 --~6I1J,786 7,121,149
O(~rli:tbilities 9.t68.7/9 4.674.432 117.564 2.177.725 9.286.363 6]52157
'fetlllliubDitic:s I'849 585 11.79'58t tl7S64 21.77725 15967 149 1307'306
Invested in C1pital t1$cts 11~331,J09 107,867,070 12,458,J05 12,476,664 127,789,614 120~4~734
Restricted 1,000,000 t,OO~OOO -1,000,000 t,oO~OOO
Unrestricted 31.854.617 31.276,715 2824.621 2.108364 34.61).238 33385,.01)
T<1al net U!;t(S S t4al85 916 S 1401417&5 S 15.282.926 S t4.58S.o28 S 161;468 852 S 15472a81J
An additional portion of the City's Net Assels ($1,000,000 or less lhan 1%)represents resources Ihat 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 lhe govemment'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.
9
Attachment 14-25
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30,20 10
City of Roncho Polos Verdes Chonges in Net Assets
Governmental Business.type
Activities Activities T~~
Jure30.2010 .hnclJ.20W .lme 30.2010 lundO 3)09 Jun«:30.2010 June 30.2000
Pr~rnm revCl1U::S:
OlllJycs for services S 4.925,684 S 3,369,955 S S S 4.925.684 S 3.369.955
Gremlins cCJltribJtials and grnJls 6,633,280 2,963,037 6,633280 2,963,037
C,pitll contributiom and grnnlS 7,178,874 6:12.020 7.1 78.874 642,020
GenernJ revenues:
Property In:<c:s 11.431,192 11,462,079 11,431.192 11,462.079
OdlCT lIues 8,019.118 5,719.141 8,019,118 5,719.141
Odlcr 513.698 855.825 1277.747 1.681985 1.791.445 2,538.810
Tculnm:mcs 38.701.846 25,012.057 J2TI.747 1.682985 39979593 26.(95.042
Expms=:s:
Administration 7.823,7]8 6.356,695 7,823,738 6,356.695
Public Sl rcty 4142.085 4,233,255 4,242.085 4,233155
Public wab IJ,633,475 10.555.058 ·13,633,475 10,555,058
P.1rks lind reac:lliln 1.826,200 1,605,276
.·1,826,200 I,ID5,276
Conunwity Q:\~lopmc:nt 2,549,490 2,696,502 ·2549.490 2,696.502
NOllo!i:p:u1mc:nb1 320.000 320.000
Int:rcsl on long-IeI'm dd>1 264,717 268.067 264.717 268,067
Waitt OwlilV Fbod Pro~tion .579.849 436.993 579.849 006,993
Tela!exDc:nsc:s 30.659.705 25.714.853 579,849 436.993 31.239.554 26,151.846
1na'"C1S11 in net nssets before tmnsfers 81142141 (1IJ2796 697,898 1245992 8.740.039 543.196
T.,....
Inamsc in net usscls 8.042141 (702.796 697,898 1245,992 8.740.039 543.196
Net assets -bCl!:inninlI offi>cal vcar 140,143.785 140.846581 14585028 13339.036 154.728.813 154.1856J7
Net 85sets·em of fisCllI '"S 148,185.926 S 140.143.785 S 15.282926 S 14.585,028 S 163468,852 S 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.
Revenues by Source -Governmental Activities
other taxes
21%
other
1%
charges for
services
13%operating
contributions
and grants
17%
capital
contributions
and grants
19"10
property taxes ~----L ---
29%
See independent auditors'report.
to
Attachment 14-26
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 51 arm drain user fees that will be utilized during FYIO-l1 for projects continued from
FY09-10.
Financial Analysis of Governmental Funds
As of the end of the current Fiscal Year,the City's Governmental Funds reported combined ending Fund
Balances of $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 RnA
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 I)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 519,373,042.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 51,285,768.In
addition to the budgeted increase of 5355,000,there was a favorable General Fund expenditure variance of
more than 5940,000.The most notable variance was related to a retrospective general liability insurance
adjustment resulting in total insurance expenditure savings of about 5333,000.The remaining 5607,000 of
expenditure savings was comprised of insignificant amounts spread among a large number of the General
Fund's 30 budget programs.About $4]1,000 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 FY09-1 °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 FY 10-11.
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 53 million was
advanced to the developer in the form 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 517,256,214.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 of57,081,597.Of this amount,
53.7 million is held for street improvement projects continued from FY09-10 to FYI0-ll and 53.0 million
is held in reserve for emergency projects as directed by City Council policy.
See independent auditors'report.
II
Attachment 14-27
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 infonnation 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 Bndgetary 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$1 ,462,450 was attributable to appropriations continued to FYIO-II.
~An increase of$I,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 resuited 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.
r 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
Attachment 14-28
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30,2010
City of Rancbo Palos Verdes Capital Assets
(net of depreciation)
G"ranmentll Bus1nC~-t)pc
Ac1i\il~s .Acti\"ilies Tdcl
Junc30 2010 liiie"30 200)June 30 2010 Jmu:30 2!)09 Junc30 21J1O }me:3D 2000
Capllllll5sCl'i rot being dcprecilllerl
Urnd S 38,808,553 S 32,139,008 S 1,408,493 S 1,408,493 S 40,217,046 S 33,$47,501
Construetim ill rn-'ress 66190 196.174 149.081 7.419.621 2lSJ71 7.615,795
obi illilllll5~S not tx:in ,(t -reciued 38.874.843 --n 33S 182 1557 7.4 882 1!14 40432.417 r 41 J63 96
ClIpilni DSsetS reins dcprt:CDlal,net
Builiillg>7,756,992 7,725,387 7,756,992 7,725,387
Vehicles 92,942 153.979 -92,942 153,979
Colrflultrc,,",ipnrnt 6Z,BS 71,327 62,538 71,327
Fumilu~,fIXtures and cquipncnl 107,867 92,471 3,543 5.9{l;111,410 98.377
InfuI!llUClun:
RDadwny sy!lcm 47,063,335 45,484.324 47.063,335 45.484,324
ScwcrSyslan 8,902,584 9,357,693 -8.902,584 9,357,693
Slonndrain syskrn 10,431,410 10,6111,899 10,897,188 3,642,64-1 11,318,608 14,314,543
PDrksvslem 1.038.788 1.9641108 -2.038.788 1,%4.808
Tobl ioJ IllBds be!'"
._...
76.456.466 7SS31 88 )0 00:731 3 ""87 57.197 '1}lBOA38
Cllp~-,.ml S _115?J 1)Q9 s !I1.!!il1llll.~~.~)~:.L..!bllM ..1 S 7,?JVi.ll.S 1;m~3.73!-
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 Rancbo Palos Verdes Ontstanding Debt
Governmental
Activities
JUlIe 30.2010 Jnne30 2009
RDA Tax Increment Bond $5,250,000 $5,315,000
RDA Deferred Interest Payable 1,136,303 1,490,909
Emnlavee comnensated absences 294,483 315,240
TcXai $6680786 $7121 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 ofthis report.
See independent auditors'report.
13
Attachment 14-29
CITY OF RANCHO PALOS VERDES
Management's Discussion and Analysis
June 30,2010
Economic Factors and Next Year's Budgets nnd 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 FY 10-11,
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 FYIO-Il 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 FYIO-II 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 infonnation 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 finance@mv.com.
See independent auditors'report.
14
•
Attachment 14-30
BASIC FINANCIAL STATEMENTS
15
Attachment 14-31
Founders Park
16
•
Attachment 14-32
GOVERNMENT-WIDE STATEMENTS
17
Attachment 14-33
Fourth of July
18
Attachment 14-34
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET ASSETS
June 30,2010
Governmental Business-type
Activities Activities Total
ASSETS:
Cash and investments S 37,707,058 S 2,908,666 S ·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
Construction in progress 66,290 149,081 215,371
Capital assets,being depreciated,nct:
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 Deemed 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-tcnn 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 assels,nct of related debt 115,331,309 12,458,305 127,789,614
Restricted for:
Community development:
Noncxpcndablc 1,000,000 1,000,000
Unrestricted 31,854,617 2,824,621 34,679,238
TOTAL NET ASSETS S 148,185,926 S 15,282,926 S 163,468,852
See indepcndent Iluditors'repon and notcs to financial stfltemenls.
19
Attachment 14-35
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
For the year ended June 30,2010
Functions/programs Expenses
Charges for
Services
Program Revenues
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental Activities:
Administration
Public safety
Public works
Parks and recreation
Community development
Non-departmental
Interest on long-tenn debt
$7,823,738
4,242,085
13,633,475
1,826,200
2,549,490
320,000
264,717
$680,920 $25,003 $
229,055 103,984
1,355,493 6,176,906 7,178,87t
896,159 28,928
1,764,057 298,459
Total governmental activities
Business-type Activity:
Water Protection Flood Control
Total Primary Government
30,659,705
579,849
$31,239,554
4,925,684
$4,925,684 $
6,633,280
6,633,280 $
7,178,874
7,178,874
General revenues:
Taxes:
Property tax,levied for general purpose
Property tax,Redevelopment Agency
tax increment
Stonn Drain user fees levied for water quality
and flood protection
Transient occupancy lax
Sales tax
Franchise tax
Molor 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
Attachment 14-36
Net (Expense)Revenue and
Changes in Net Assets
Governmental Business-type
Activities Activity Total
$(7,117,815)$$(7,117,815)
(3,909,046)(3,909,046)
1,077,798 1,077,798
(901,113)(901,113)
(486,974)(486,974)
(320,000)(320,000)
(264,717)(264,717)
(11,921,867)(11,921,867)
(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
Attachment 14-37
Hesse Park Playground
22
•
Attachment 14-38
FUND FINANCIAL STATEMENTS
23
•
Attachment 14-39
CITY OF RANCHO PALOS VERDES
BALANCE SHEET-GOVERNMENTAL FUNDS
June 30,2010
Special
Revenue
Street
General Maintenance
ASSETS
Cash and investments $13,920,332 S 1,097,773
Receivables:
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 34,036,169 S 1,205,433
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable and accrued liabilities S 2,191,211 S 429,415
Due (0 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
Penn anent fund
TOTAL FUND BALANCES (DEFICIT)19,373,042 776,018
TOTAL LIABILITIES AND FUND BALANCES S 34,036,169 S 1,205,433
See independent auditors'report and notes to financial statements.
24
Attachment 14-40
Special Debt Capital
Revenue Service Projects Other TOlal
RnA Housing Redevelopment Capital Governmenlal Governmental
Set-Aside Agency lrnprovements 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
$7,55U,298 S 551,004 S 7,546,344 $12,73U,U56 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,U60
1,774,203 17,594,675 19,368,878
9U9,909
6,125,587 17,807,278 464,747 981,988 40,472,142
1,000,000 1,000,UUU
1,086 540,561 18,502 1,373,591
1,766,368 8,U72,744
2,990,000 2,990,000
43,741 43,741
46,648
1,462,450
85,00U 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 1,24U,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
Attachment 14-41
Founders Park Memorial
26
Attachment 14-42
CITY OF RANCHO PALOS VERDES
RECONCILJAnON 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 arc different because:
Capital assets used in governmental activities ure not current financial resources and,therefore,
urc 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 10 the balance of tJ1C advance.The
Stalement ofNcl Assets reports on the full accrual basis and docs not defer currently unavailable
revenues.
Intergovernmental revenues earned,but not available,are deferred in the fund financial statements.
The revenue is not deferred on thc Statement of Activities.
Intcrest expenditures are recognized when due,and therefore,intcrest payable is not recorded in
the governmental funds.
Long-term notcs receivable are not current available resources and,therefore,do not affect the
governmental fund balance.
Long-tenn liabilities are not due and payable in the currcnt period and,thereforc,are not reported
in the governmental funds.
Internal service funds nre used by management to charge the costs of certain activities,inc1udin£
equipment and building rcplacement 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
Attachment 14-43
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS
For the year ended June 30,2010
Special
Revenue
Street
General Maintenance
REVENUES:
Taxes $17,962,533 $
Licenses and penn its 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 (3,467,20 I)
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
Attachment 14-44
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
Attachment 14-45
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 lhe year ended June 30.2010
Net change in fund balances -loin I governmental fund~
Amounts reported for governmental activities in the Statement of Activities ure dilTerent because
Governmental funds report capital outlays us expenditures.However,in the Statement of Activities
the cost oftllase ussets is allocated over their estimated useful lives us depreciation expense,0
are allocated to the appropriate functional expense when the cosl is below the capitalization threshold
Asset disposals nrc also not recognized in the governmental funds.This activity reconciled os follows
Cost of assets capitalized
Depreciution expense
Unpaid accrued interest income is deferred in the governmental funds since it is not available.Thi~
income is accrued in thc Statement of Activities.
Intergovernmental revenues earned,but not available are deferred in the fund financial statements
Interest expenditures arc recognized when due,and therefore,interest payable is not recorded ill th,
governmental funds.This amount represents the net change in interest payable
Increases in long-tenn notes receivable use current financial resources and arc included in the expenditure:
of governmental funds.Repayments of long-tcnn notes receivables provide current financial resource
and are included in the revenues of governmental funds.These changes in notes reccivable ure no
reflected in the revenues orexpcnses of the Statement of Activities.This amount represents the ne
change in the long-tenn notes receivable
Compensalcd abscnces expenses reportcd in the Stalement of Activities do nOI require thc use of curren
financial resoun:es and therefore arc not reponed as expenditures in governmental funds
Principal payments on debt are recorded as expenditures in the funds.The expenditure is not rccognizet
in tile Statement of Activities since it reduces the liability reported on the Statement ofNel Assets
Principal payments consisted of the following:
Redevelopment Agency tax increment bone
Redevelopment Agency deferred interest payablt
Inlernal service funds are used by management 10 charge the costs ofccnain activities,including cquipmcn
and building replacement and employee benefits,to individual funds.The net revenucs/(expenscs)of tit,
internal service funds (excluding transfers and interest income)are reponed with governmental activities
Change in net assets of governmental nctivitie~
See independent auditors'repon and notes to financial statements
30
S
S
(287,017)
IO,865:S49
(3,346,880)
620,873
87,869
408
(5,257)
10,757
65,000
354,606
(333,767)
8,042,141
Attachment 14-46
crn'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
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Aclunl (Negative)
REVENUES,
Taxes S 15,992,975 S 17,916,975 S 17,962,533 S 45,558
Licenses and pcnnits 2,007,100 1,992,100 1,953,825 (38,275)
Fines and forfeitures 246,500 218,500 178,949 (39,551)
Usc 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 odlcr agcncic~320.471 202,972 170,676 (32,296)
Other revenues 148.100 148,200 \48,200
TOTAL REVENUES \9,635,046 21,229,547 21,303,228 73,681
EXPENDITURES,
General Govcmcmcnl
City council 97,378 106,768 105,935 833
City manager \,492,856 1,544,156 \,375,577 168,579
City attorney \,\65,000 \,075,000 1,048,72\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 5,37\
Finance \,242,180 1,272,180 \,269,290 2,890
Infonnntiolllcchno]ogy ~Data 638,340 568,340 545,915 22,425
Infonnation technology -Voic~81,705 81,705 73,675 8,030
Tom!General Govcmmcnl 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 32,72\
Emergency preparednes~114,\77 172,177 171,265 912
Tolal Public Safety 4,291,177 4,335,\77 4,242,085 93,092
Public Works
Public works administrntion 1,886,021 1,711,021 \,658,6\7 52,404
Traffic managemenl 407,000 220,600 209,778 10,822
Stonn water quality 173,900 221,900 122,283 99,6\7
Building maintenance 528,200 572,200 447,825 \24,375
PnrkfTraiVOpen Space maintenance 1,\84,893 899,893 613,556 286,337
Sewer ItUlintenancc 60,300 \31,300 57,194 74,106
Total Public Works 4,240,314 3,756,9\4 3,109,253 647,661
31
Attachment 14-47
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
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Parks and Recreation
Recreation administration 605,756 639,756 593,127 46,629
Recreation facilities 402,296 430,296 419,836 10,460
Special events 40,904 40,904 25,787 15,117 ~
PVIC 330,331 335,331 294,565 40,766
REACH 74,672 74,672 68,488 6,184
Total Parks and Recreation 1,453,959 1,520,959 1,401,803 119,156
Community Devclopmc01
Planning services 1,245,118 1,310,944 1,320,867
(9,923)
Building &safety 591,177 646,177 611,145 35,032
Code cnforccmclIl 201,658 201,658 179,496 22,162
View restoration/preservation 321,288 326,288 324,139 2,149
NCCP 10,550 10,550
Geology 200,000 200,000 108,453 91,547
Total Community Dcvclopmcm 2,559,241 2,695,617 2,554,650 140,967
Non-Dcpartmentnl 320,000 (320,000)
TOTAL EXPENDITURES 17,941,846 17,645,512 16,718,366 927,146
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES 1,693,200 3,584,035 4,584,862 1,000,827
OTHER FINANCING SOURCES (USES):
Transfers ill 292,648 292,648 168,107 (124,541 )
Transfers out (1,773,500)(3,531,625)(3,467,2011 64,424
TOTAL OTHER FINANCING
SOURCES (USES)(1,480,852)(3,238,977) (3,299,094)
(60,117)
NET CHANGE IN FUND BALANCE 212,348 345,058 1,285,768 940,710
FUND BALANCE -BEGINNING OF YEAR 18,087,274 18,087,274 18,087,274
FUND BALANCE -END OF YEAR S 18,299,622 S 18,432,332 S 19,373,042 S 940,710
See independent auditors'report Dnd notes to financial statements
32
Attachment 14-48
See independent auditors'report and nOles 10 financial Sialemenis.
33
Attachment 14-49
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
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes S 205,200 S 211,700 S 215,652 S 3,952
Use of money and propeny 10,600 10,600 8,303 (2,~97)
Proceeds of sale of land 2,990,000 2,990,000
TOTAL REVENUES 215,800 222,300 3,213,955 2,991,655
EXPENDITURES:
Community Development
Redevelopment 12,500 12,500 46,056 (33,556)
Capital outlay 907,000 3,587,496 3,810,939 (223,443)
TOTAL EXPENDITURES 919,500 3,599,996 3,856,995 (256,999)
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES (703,700)(3,377,696)(643,040)2,734,656
OTHER FINANCING SOURCES:
Transfers in 1,766,368 (1,766,368)
NET CHANGE IN FUND BALANCE (703,700)(1,611,328)(643,040)968,288
FUND BALANCE -BEGINNING OF YEAR 2,067,751 2,067,751 2,067,751
FUND BALANCE -END OF YEAR S 1,364,051 S 456,423 S 1,424,711 S 968,288
See independent auditors'report and notes to financial statements.
34
Attachment 14-50
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30,2010
Business-type Governmental
Activity-Activities-
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
ASSETS
CURRENT ASSETS:
Cash and investments S 2,908,666 $4,263,578 •
Receivables:
Interest 3,206 4,607
Other 30,313
Prepaid items 121,867
TOTAL CURRENT ASSETS 2,942,185 4,390,052
NONCURRENT ASSETS:
Capital assets,not being depreciated:
Land 1,408,493
Construction in progress 149,081
Capital assets,being depreciated:
Property and equipment 11,813 1,401,374
Infrastructure 11,338,573
Accumulated depreciation (449,655)(1,138,027)
TOTAL NONCURRENT ASSETS 12,458,305 263,347
TOTAL ASSETS 15,400,490 4,653,399
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities 57,761 170,340
Retentions payable 59,803
TOTAL CURRENT LIABILITIES 117,564 170,340
NET ASSETS
Invested in capital assets 12,458,305 263,347
Unrestricted 2,824,621 4,219,712
TOTAL NET ASSETS $15,282,926 $4,483,059
See independent auditors'report and notes to financial statements.
Attachment 14-51
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES,EXPENSES AND
CHANGES IN NET ASSETS -PROPRIETARY FUNDS
For the year cnded June 30.2010
Business-type Governmental
Activity-Activities-
Water Quality Intcmal
Flood Protection Service
Enterprise Fund Funds
OPERATING REVENUES:
Charges for services $2,196,372
OPERATING EXPENSES:
Personnel services 132,040 3,548,913
Malcrials and supplies 100,265 118,999
Maintenance 112,008 347,315
Depreciation 235,536 119,385
TOTAL OPERATING EXPENSES 579,849 4,134,612
OPERATING LOSS (579,849)(1,938,240)
NONOPERATING REVENUES:
Other revenues 6,806
Interest income 14,175 22,166
Storm drain user fees 1,263,572
TOTAL NONOPERATING REVENUES 1,277,747 28,972
Transfer in 1,575,501
CHANGE IN NET ASSETS 697,898 (333,767)
TOTAL NET ASSETS -BEGINNING OF YEAR 14,585,028 4,816,826
TOTAL NET ASSETS -END OF YEAR S 15,282,926 S 4,483,059
See independent auditors'report and notcs to financial statements.
36
Attachment 14-52
CITY OF RANCHO PALOS VERDES
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30,2010
Business-type Governmental
Activity-Activities-
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from intcrfund services provided $$2,196,372
Payments to suppliers (212,273)(462,594)
Payments to employccli (132,040)(3,089,019)
NET CASH USED BY OPERATING ACTIVITIES (344,313)(1,355,241 )
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (2,277,338)(64,955)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Receipts from storm drain user fees 1,255,190
Receipts from other funds 1,240,168
NET CASH PROVIDED FROM NON-CAPITAL
FINANCING ACTIVITIES 1,255,190 1,240,168
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments 22,658 29,205
NET DECREASE
IN CASH AND CASH EQUIVALENTS (1,343,803)(150,823)
CASH AND CASH EQUIVALENTS -BEGINNING OF YEAR 4,252,469 4,414,401
CASH AND CASH EQUIVALENTS -END OF YEAR $2,908,666 $4,263,578
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss $(579,849)$(1,938,240)
Adjustments to reconcile operating loss
to net cash used by operating activities:
Depreciation 235,536 119,385
Changes in operating assets and liabilities:
Decrease in prepaid items 408,641
Increase in accrued liabilities 54,973
NET CASH USED BY OPERATING ACTIVITIES $(344,313)$(1,355,24 I)
See independent auditors'report and notes to financial statements.
37
Attachment 14-53
.'
f)..
'/-,f
"
Ladera Linda Park Playground
38
Attachment 14-54
NOTES TO FINANCIAL STATEMENTS
39
Attachment 14-55
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 3D,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 selling 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
Attachment 14-56
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
Attachment 14-57
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2010
NOTE #1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
pvtransit@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
Attachment 14-58
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
•
Attachment 14-59
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
Attachment 14-60
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 3D,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
Attachment 14-61
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
generaily accepted in the United States of America for ail governmental funds.Ail
annual appropriations lapse at fiscal year-end.Budget control is maintained over
ail accounts,and expenditures are not ailowed 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 ail owed appropriations,
the excess must either be refunded to the State Controiler,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 foilowing 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
Attachment 14-62
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
Vehicles,Computers,and Equipment
Infrastructure Assets
Roadway Network
Sewer Network
Storm Drain Network
Parks and Recreation Network
H.Employee Compensated Absences
25 to 50 years
3t010years
10 to 100 years
25 to 50 years
30 to 100 years
25 years
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
Attachment 14-63
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
Attachment 14-64
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2010
NOTE #1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
M.Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to
make estimates and assumptions that 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
Deposits with Financial Institutions
Investments
Total cash and investments
$2,500
2,699,972
37,913,252
$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
Attachment 14-65
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
Authorized Investment Type
U.S.Treasury Obligations
Negotiable Certificates of Deposit
Repurchase Agreements
Money Market Mutual Funds
Local Agency Investment Fund (LAIF)
Money Market Savings/Demand Deposits
Maximum
Maturity
3 years
5 years
7 days
N/A
N/A
N/A
Maximum
Amount or
Percent of
Portfolio
None
30%
15%
15%
None
$5 million
Maximum
in One
Issuer
None
None
None
15%
None
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.
Remaining
Maturity
(in Months)
Investment Type
State Investment
Pool
U.S.Treasury
Securities
12 Months
or Less
$33,247,252
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
Attachment 14-66
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 anyone 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 investrnent
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
•
Attachment 14-67
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:
Due To
$
Capital
Improvement
Capital Project
Funds
~Redevelopment Agency Debt.t Service Fund
~Other Govemmental Funds
o Totals:
General
Fund
$211,956
26,657
$238,613 $
2,681
2,681
Totals
$211,956
29,338
$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
Attachment 14-68
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2010
NOTE #3 -INTERFUND TRANSACTIONS (continued)
Balance
July 1,2009 Additions
Advances to the RedeveiopmentAgency $16,886,970 $2,481,908
Balance
Deletions June 3D,2010
$$19,368,878
The City has entered into an agreement to provide the RDA operating funds and
staff assistance,supplies,technical and other services and facilities of the City as •
the RDA requires in carrying out its function under the community redevelopment
law.The RDA will repay the resulting indebtedness,plus interest,from
incremental property tax revenues arising from the project area,as such revenue
becomes available.As of June 30,2010,no revenue was available to the RDA to
repay the advances due to the City,nor is sufficient revenue expected to be
available to repay advances in the immediate future.Variable interest was
accrued at a rate of 3.658 percent during the fiscal year ended June 30,2010.Of
the $17,594,675 advance,$13,561,525 relates to the Portuguese Bend portion of
the RDA,while $4,033,149 relates to the Abalone Cove portion.During the year
ended June 30,2010,accrued interest of $478,553 was added to the balance of
the advance to the Portuguese Bend Fund,while principal of $86,831 and
accrued interest of $142,320 was advanced to the Abalone Cove Fund.No
interest has ever been paid by the RDA on these advances:therefore,the
interest component of the advance has been recorded as deferred revenue in the
General Fund of the City.
In connection with the development of the senior affordable housing project,the
City agreed to advance funds to the Redevelopment Agency for use in providing
financial assistance to the developer in the form of a construction loan.The
balance of these advances at June 30,2010 was $1,774,203.
Inter-fund Transfers
Inter-fund transfers for the year ended June 30,2010,consisted of the following:
Transfer From
Other
General Governmental
Fund Funds Totals
General Fund $$168,107 $168,107
0 Street Maintenance 22,000 1,078,912 1,100,912f-
~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 1,575,501f-
Totals:$3,467,201 $2,724,454 $6,191,655
See independent auditors'report.
53
Attachment 14-69
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 DEPRECIA TlON
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 nol being depreciated:
Land
Construclion In progress
Total capital assets not being depreciated
Beginning
Balance
$32.139.008
196.174
32.335.162
Increases
$6.669.545
2.684.926
9.354,471
Ending
Decreases Balance
S 38,608.553
S (2.814.810)66.290
(2.814.810)38.874.843
(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)
(4.31 8.B4 3)_":(7.12;;;4~,3~97~}__----;;""",.----,f,(4,",4;;:4",3.",24",0;(-)
(63.236.187)(3,466.265)::9..:..77~5;,.(66.692.677)
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
9,559.574
299.229
534,442
512.517
82.674.783
25,755,463
13.148,416
6.283.651
138,768.075
(1,834,187)
(157.342)
(505.633)
(365,436)
252.059
64.955
3.875,452
198.377
4.390.843
(220,454)
(48,945)
(31.226)
(39,214)
(9.775)
(9.775)
9.775
9,611,633
289,454
599.397
512.517
86,550,235
25,755,463
13.148,416
6,482.028
143.149.143
(2,054,641 )
(196.512)
(536.859)
(404.650)
Tolal capital assets being depreciated,net
Govemmental activities capital assets,net
See independent auditors'report,
75,531.888 924.578 76,456,466
S 107.867,070 S 10.279.049 S (2.814.810)S 115,331.309
54
Attachment 14-70
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2010
NOTE #4 -CAPITAL ASSETS AND DEPRECIA TlON (continued)
Depreciation expense was charged to functions/programs of the primary
government as follows:
Administration
Public Works (including depreciation of general infrastructure
assets)
Recreation Services
Capital assets held by the City's internal service funds are charged
to the various functions based on their usage of the assets
Total Depreciation Expense -Governmental Activities
$220,454
3,002,029
124,397
119,385
$3.466,265
•
$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
(5,907)(2,363)(8,270)
(208,212)(233,173)(441,385)
(214,119) (235,536)
(449,655)
3,648,550 7,252,181 10,900,731
$12,476,664 $7,469,358 $(7,487,717)$12,458,305
Buslness·type Activities
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Equipment
Storm drain system
Total capital assets being depreciated
Less accumulated depreciation for:
Equipment
Storm drain system
Total accumulated depreciation
Total capital assels being depreciated,net
Business-type activities capital assets,net
Beginning
Balance Increases Decreases
Ending
Balance
Depreciation expense of $235,536 is included in the Water Quality Flood
Protection enterprise fund,
NOTE #5 -LONG-TERM DEBT
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
Attachment 14-71
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
Attachment 14-72
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
Attachment 14-73
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 Endin9
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 -CLASSIFICA TlONS 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
Attachment 14-74
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2010
NOTE #6 -CLASSIFICA TIONS 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 irnposed 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 Financiai 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 3D,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:
ReimblJ'semenlseUlement
agreement S S S S S S 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 S 7,166,466 S S 2,991,086 S 540,561 S S 2,828,611
Designated:
Continuing Appropriations:
General fund S 1,462,450 S S S S S
Special revenue funds 85,000
Capital projects funds 6,939,260 554,675
Totals Designated S 1,462.450 S S S S 6,939,260 S 639,675
See independent auditors'report,
59
•
Attachment 14-75
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 Long 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 Inventorv
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 Continuing 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
Attachment 14-76
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2010
NOTE #7 -PENSION AND RETIREMENT HEAL TH SAVINGS PLANS
Pension Plan Description
The City provides a defined benefit pension plan that includes retirement and
disability benefits,annual cost-of-Iiving 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 (CaIPERS),
a cost-sharing,multi-employer public employee defined benefit pension plan
administered by CaIPERS.CalPERS provides retirement and disability benefits,
annual cost-of-Iiving 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 CaIPERS.
Active City employees are required to contribute 8%of their annual covered
saiary.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 CaIPERS.
See independent auditors'report.
61
Attachment 14-77
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 3D,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 adrninistration 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
Attachment 14-78
CITY OF RANCHO PALOS VERDES
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2010
NOTE #8 -LIABILITY,INSURED PROGRAMS AND WORKERS'
COMPENSA TlON 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 deductable.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 deposil.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
•
Attachment 14-79
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
Attachment 14-80
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
Litiqation
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
Attachment 14-81
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.
Building 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 iandowners 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 fiip
in lieu sales tax,and supplemental property tax,apportioned to cities,counties
See independent auditors'report.
66
Attachment 14-82
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 Cornmunities"),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 Cornmunities 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
Attachment 14-83
$11,288,300
108,034
162,252
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
Advance on federal grant
Revenue earned but not available
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 3D,2010,as follows:
Budget
General Fund Non-Departmental $0
See independent auditors'report.
68
Expenditures
$320,000
Excess
$320,000
Attachment 14-84
SUPPLEMENTARY INFORMAnON
69
Attachment 14-85
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 3D,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes S 820.900 S 846,900 S 862,609 S 15,709
Use of money and propcny 183 183
•
TOTAL REVENUES 820,900 846,900 862,792 15,892
EXPENDITURES:
Currenl:
Administration 16,400 346,525 346,483 42
Pass through to other agcncie~174,400 174,400 183,625 (9,215)
Debt service:
Principal 381,375 381,375 419,606 (38,131 )
Interest and fiscal charges 1,025,525 1,025.525 885,998 139,527
TOTAL EXPENDITURES 1,597,700 1.927,825 1,835,711 92.113
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES (776,800)(1,080,925)(971,920)108,005
FUND DEFICIT -BEGINNING OF YEAR (16,183,194)(16,183,194)(16,283,294)
FUND DEFICIT -END OF YEAR S (17,060,094)S (17,364,119)S (17,256,214)S 108,005
See independent auditors'report.
70
Attachment 14-86
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
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies S 858,320 S 2,804,720 S 6,998,875 S 4,194,155
Use of money and property 64,600 6,014,600 466,967 (5,547,(;33)
TOTAL REVENUES 922,920 8,819,320 7,465,842 (1,353,478)
EXPENDITURES:
Capital Outlay
Infrnstructure administration 17,200 17,200 1,985 15,215
Street improvements 5,832,960 5,068,303 3,750,571 1,317,732
Parksffrails/Opcll 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 S 6,171,660 S 9,798,481 S 7,081,597 S (2,716,884)
See independent auditors'report.
71
Attachment 14-87
Founders Park
72
Attachment 14-88
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 (CDBGl -to account for Federal Grants
received from the Department of Housing and Urban Development (HUD).
Community Development Block Grant Recovery Act (CDBG-Rl -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 creationlretention.
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 supplementai 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
•
Attachment 14-89
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 Ginsburg Cultural Arts Building (Ginsburg Cultural Art
flli!g}-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
•
Attachment 14-90
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
Attachment 14-91
CITY OF RANCHO PALOS VERDES
JUNE 30,2010
NON MAJOR 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
Attachment 14-92
Public Access to the Coastline
77
•
Attachment 14-93
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30,2010
Special Revenue Funds
Air
Quality
Management CDBG CDBG-R EI Prado Proposition A
ASSETS
Cash and investments S 38,364 S S S 12,691 S 126,639 •
Receivables:
Taxes 90
Interest 31 14 66
Notes 433,375
Other 13,014 46,100 5,138
Prepaid items
Advance 10 other funds
TOTAL ASSETS S 51,409 S 479,475 S 5,138 S 12,795 S 126,705
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities S S 31,239 S 5,138 S (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 teml advances
Habitat restoration
Unreserved:
Designated for continuing
appropriations:
Special revenue funds
Capital projects funds
Undesignaled reported in:
Special revenue funds 51,409 12,850 100,264
Capital projects funds
Pennanen!funds
TOTAL FUND
BALANCES 51,409 12,850 100,264
TOTAL LIABILITIES
AND FUND BALANCES S 51,409 S 479,475 $5,138 S 12,795 S 126,705
See independent auditors'report.
78
Attachment 14-94
Special Revenue Funds (Continued)
Proposition C Measure R Beautification
Waste
Reduction
Public
Safety
Grants 1972 Acl
S 1,692,274
3,284
S 1,695,558
S
1,695,558
1,695,558
S 1,695,558
S
S
S
S
272,980
236
273,216
273,216
273,216
273,216
S
S
S
S
808,175
1,649
48,525
858,349
247
247
75,000
783,102
858,102
858,349
S
S
S
S
210,228
267
36,272
246,767
16,272
16,272
230,495
230,495
246,767
S
S
S
S
27,245
127
7,548
34,920
34,920
34,920
34,920
S
S
S
S
43,826
7,891
253
51,970
1,225
1,225
50,745
50,745
51,970
79
(Continued)
Attachment 14-95
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30,2010
Special Revenue Funds (Continued)
Joint Powers
Improvement Subregion
Authority Habitat One
1911 Act Portuguese Bend Restoration Maintenance
ASSETS
Cash and investments S 1,671,109 S 288,771 S 275,044 S 782,444 •
Receivables:
Taxes 23,255
Inlerest 1,907 188 149 811
Notes
Other
Prepaid items
Advance 10 other funds
TOTAL ASSETS S 1,696,271 S 288,959 S 275,193 S 783,255
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities $57,153 $5,638 $$9,335
Due to olher funds
Deferred revenue
TOTAL LIABILITIES 57,153 5,638 9,335
FUND BALANCES:
Reserved:
Reimbursement settlement
agreement
Prepaid items
Long teml 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 S 288,959 S 275,193 S 783,255
See independent auditors'report.
80
Attachment 14-96
Special Revenue Funds (Continued)
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
S 7,440 S 61,747 S 6,287 S 201,938 S 403,392 S 6,930,594
385 31,621
58 71 218 446 9,775
433,375
38,460 195,057
1,310 1,310
S 45,958 S 62,203 S 7,597 S 202,156 S 403,838 S 7,601,732
s
s
11,796
11,796
34,162
34,162
45,958
s
s
3,860
3,860
58,343
58,343
62,203
s
s
6,445
6,445
1,310
(158)
1,152
7,597
s
s
202,156
202,156
202,156
81
s
s
403,838
403,838
403,838
s
s
162,938
26,657
433,375
622,970
1,310
43,741
85,000
6,848,711
6,978,762
7,601,732
(Continued)
Attachment 14-97
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30,2010
Capital Projects Funds
Redevelopment
Agency
Abalone Environmental Affordable
Bikeways Cove Excise Tax Quimby Housing
ASSETS
C<lsh and investments S S 6,197 S 722,314 S 29,173 S 7,00""
Receivables:
Taxes
Interest 15 6 1,004 32 18
Notes
Olher 2,666
Prepaid items
Advance to olher funds 1,774,203
TOTAL ASSETS S 2,681 S 6,203 S 723,318 S 29,205 S 1,781,228
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable and
accrued liabilities S S S 39,067 S S
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 tcnn advances 1,766,368
Habitat restoration
Unreserved:
Designated for continuing
appropriations:
Special revenue funds
Capilal projects funds 554,675
Undesignated reported in:
Special revenue funds
Cnpila!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 S 2,681 S 6,203 S 723,318 S 29,205 S 1,781,228
See independent auditors'report.
82
Attachment 14-98
Capital Projects Funds (Conlinued)Pernlanent Fund
Redevelopment Total Joint Powers Total
Agency Capital Improvement Other
Portuguese Utility Roadway Projects Authority Governmental
Bend Undergrounding Beautification Funds Abalone Cove Funds
S 549,540 S 274,855 S 101,956 S 1,691,042 S 1,334,819 S 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
S 872,264 S 275,159 S 102,068 S 3,792,126 S 1,336,198 S 12,730,056
$1,502 $
304,958
306,460
17,192
$s 40,569 $
2,681
312,793
356,043
17,192
1,766,368
2,975 $
2,975
1,000,000
206,482
29,338
746,168
981,988
1,000,000
18,502
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
S 872,264 $275,159 S 102,068 S 3,792,126 S 1,336,198 $12,730,056
83
Attachment 14-99
See independent auditors'report.
84
Attachment 14-100
Special Revenue Funds (Continued)
Public
Waste Safety
Proposition C Measure R Beautification Reduction Grants
$$$$$
14,084 390 7,188 223,920 380
453,443 272,826 91,120 100,000
200,220
467,527 273,216 207,408 315,040 100,380
1972 Act
$262,418
641
263,059
467,527
(1,336,968)
(1,336,968)
(869,441 )
2,564,999
273,216
273,216
25,803
25,803
181,605
(690,754)
(690,754)
(509,149)
1,367,251
218,650
218,650
96,390
(40,000)
(40,000)
56,390
174,105
100,380
(100,000)
(100,000)
380
34,540
70,973
70,973
192,086
(200,000)
(200,000)
(7,914)
58,659
S 1,695,558 $273,216 $858,102 $230,495 $
85
34,920 =$~==50~,=74=5=
(Continued)
Attachment 14-101
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES -OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year cnded June 30,2010
Special Revenue Funds (Continued)
Joint Powers
Improvement Subregion
Authority Habitat One
1911 Ac'Portuguese Bend Restoration Maintenance
REVENUES:
Taxes S 492,606 S S S •
Use of money and property 8,441 1,042 5,804 3,795
Revenue from other agencies
Other revenues
TOTAL REVENUES 501,047 1,042 5,804 3,795
EXPENDITURES:
Current:
Adminjstration
Public works 421,712 59,334 124,791 52,211
Community development
Parks and recreation
Capital outlay
TOTAL EXPENDITURES 421,712 59,334 124,791 52,211
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 79,335 (58,292)(118,987)(48,416)
OTHER FINANCING SOURCES (USES):
Transfers in 110,000 169,000 55,000
Transfers oul (72,824)
TOTAL OTHER FINANCING
SOURCES (USES)(72,824)110,000 169,000 55,000
NET CHANGE IN
FUND BALANCES 6,511 51,708 50,013 6,584
FUND BALANCE (DEFICIT)-
BEGINNING OF YEAR 1,632,607 231,613 225,180 767,336
FUND BALANCES (DEFICI1)-
END OF YEAR S 1,639,118 S 283,321 S 275,193 S 773,920
See independent lluditors'report.
86
Attachment 14-102
Special Revenue Funds (Continued)
Dr.Allen and
Abalone Cove Rancho Charlotte Total
Sewer Palos Ginsburg Donor Special
Assessment Verdes Cultural Restricted Revenue
Measure A District TV Channel Arts Building Contributions Funds
$$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
Attachment 14-103
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES -OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the ycnr ended June 30,2010
Capital Projects Funds
Redevelopment
Agency
Abalone Environmental Affordable
Bikeways Cove Excise Tax Quimby Housing
REVENUES:
Taxes S S S S S ~-
Use of money and property 48 32 4,386 137 5,681
Revenue from other agencies 18,540
Other revenues 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)-
ENDOF YEAR S S 6,203 S 684,251 S 29,205 S 1,773,393
See independent auditors'report.
88
Attachment 14-104
Capital Projects Funds (Continued)Pennanent Fund
Redevelopment Total Joint Powers Total
Agency Capital Improvement Other
Ponuguese Utility Roadway Projects Authority Governmental
Bend Undergrounding Beautification Funds Abalone Cove Funds
S S S S S S 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
453,700
(204,888)(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 2,625,33 I 1,362,23 I 11,930,847
S 565,804 S 275,159 S 102,068 S 3,436,083 S 1,333,223 S 11,748,068
89
Attachment 14-105
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 yenr ended JUDe 30,2010
Variance widl
Final Budget
Positive
(Negative)
REVENUES:
Revenue from other agencies
Use of money and property
TOTAL REVENUES
Budgeted Amounts
Original Finnl Actunl
S 49,800 S 99,800 S 98,463
800 800 170
50,600 100,600 98,633
s (1,337)
(630)
(1,967)
EXPENDITURES:
Public works
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES
FUND BALANCE -BEGINNING OF YEAR
FUND BALANCE -END OF YEAR
See independent auditors'report.
s
90
50,000
600
52,776
53,376 s
100,000
600
52,776
53,376 s
100,000
(1,367)
52,776
51,409 s
(1,967)
(1,967)
Attachment 14-106
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 yenr ended June 30,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other Dgencies S 301,826 S 336,826 S 247,080 S (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 oul (26,848)(26,848)(26,847)
NET CHANGE IN FUND BALANCE 6 6
FUND DEFICIT -BEGINNING OF YEAR (6)(6)(6)
FUND DEFICIT -END OF YEAR S (6)$(6)$$6
See independent auditors'report.
91
Attachment 14-107
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT RECOVERY ACT REVENUE FUND
For the year ended June 3D,2010
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Positive
(Negative)
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.
S
S
92
S
S
51,380
51,380
S
S
51,380
51,380
S
$
Attachment 14-108
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
Variance wilh
Final Budget
Budgeted Amounts Positive
Original Finnl Actual (Negative)
REVENUES:
Taxes S 1,870 S 1,870 S 1,887 S 17
Use of money and property 160 160 59 (;01 )
TOTAL REVENUES 2,030 2,030 1,946 (84)
EXPENDITURES:
Public works 11,000 11,000 234 10,766
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES (8,970)(8,970)1,712 10,682
FUND BALANCE -BEGINNING OF YEAR 11,138 11,138 11,138
FUND BALANCE -END OF YEAR S 2,168 S 2,168 S 12,850 S 10,682
See independent auditors'report.
93 Attachment 14-109
ClTY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
PROPOSITION A SPECIAL REVENUE FUND
For the yenr cnded June 30,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from olher agencies $698,923 $546,923 $546,618 S (305)
Use of money and property 1,000 1,000 459 (~41)
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 S 223,917 S 4,917 S 100,264 S 95,347
See independent auditors'report.
94
Attachment 14-110
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 cnded June 30,2010
Variance widl
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies S 570,384 S 457,384 S 453,443 S (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 S 900,563 S 83,512 S 1,695,558 S 1,612,046
See independent auditors'report.
95
Attachment 14-111
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 JUDe 30,2010
Budgeted Amounts
Original Final
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Revenue from other agencies
Use of money and propeny
TOTAL REVENUES
FUND BALANCE -BEGINNING OF YEAR
FUND BALANCE -END OF YEAR
See independent auditors'report.
s
s
96
221,267
221,267
221,267
s
s
221,267
221,267
221,267
s
s
Actual
272,826
390
273,216
273,216
s
s
51,559
J90
51,949
51,949
Attachment 14-112
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 JUlie 30,2010
Variance Wilh
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Olher revenues S 150,000 S 150,000 S 200,220 S 50,220
Use of money and property 12,900 12,900 7,188 (5,~12)
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 S 677,621 S 449,621 S 858,102 S 408,481
See independent auditors'report.
97
Attachment 14-113
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
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies S 65,000 S 65,000 S 91,120 S 26,120
Use of money and property 72,890 221,390 223,920 2~30
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 S 85,587 S 123,787 S 230,495 S 106,708
See independent auditors'repon.
98
Attachment 14-114
See independent auditors'repon.
99
Attachment 14-115
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
1972 ACT SPECIAL REVENUE FUND
For the )'cor ended June 30,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes S 257,559 S 257,559 S 262,418 S 4,859
Use of money and property 900 900 641 (~9)
TOTAL REVENUES 258,459 258,459 263,059 4,600
EXPENDITURES:
Public works 69,100 69,100 70,973 (1,873)
EXCESS (DEFIClENCY)OF REVENUES
OVER (UNDER)EXPENDITURES 189,359 189,359 192,086 2,727
OTHER FINANCING USES:
Transfers oul (200,000) (200,000)(200,000)
NET CHANGE IN FUND BALANCE (10,641 )(10,641)(7,914)2,727
FUND BALANCE -BEGINNING OF YEAR 58,659 58,659 58,659
FUND BALANCE -END OF YEAR S 48,018 S 48,018 S 50,745 S 2,727
Sec independent auditors'report.
100
Attachment 14-116
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
1911 ACT SPECIAL REVENUE FUND
For tbe year ended June 30,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Ta"(cs S 483,100 S 483,100 S 492,606 S 9,506
Use of money and property 21,700 21,700 8,441 (13,~9)
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 oul (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 S 1,560,007 S 1,560,007 S 1,639,118 S 79,111
See independent auditors'report.
101
Attachment 14-117
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 FUND
For the year ended June 30,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use ofmoncy and property $2,820 $2,820 S 1,042 $(1,778)
~
EXPENDITURES:
Public works 138,700 138,700 59,334 79,366
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES (135,880)(135,880)(58,292)77,588
OTHER FINANCING SOURCES:
Transfers in 110,000 110,000 110,000
NET CHANGE IN FUND BALANCE (25,880)(25,880)51,708 77,588
FUND BALANCE -BEGINNING OF YEAR 231,613 231,613 231,613
FUND BALANCE -END OF YEAR $205,733 $205,733 $283,321 $77,588
See independent auditors'report.
102
Attachment 14-118
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
Variance with
Final Budget
Budgeled Amounts Positive
Original Final Actual (Negative)
REVENUES;
Usc of money and property S 1,800 S 1,800 S 5,804 S 4,004
•
EXPENDITURES;
Public works 124,791 194,791 124,791 70,000
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES (122,991)(192,991 )(118,987)(65,996)
OTHER FINANCING SOURCES;
Transfers in 115,000 169,000 169,000
NET CHANGE IN FUND BALANCE (7,991 )(23,991)50,013 (65,996)
FUND BALANCE -BEGINNING OF YEAR 225,180 225,180 225,180
FUND BALANCE -END OF YEAR S 217,189 S 201,189 $275,193 S (65,996)
See independent auditors'Tepan.
103
Attachment 14-119
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
Variance with
Finnl Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property S 11,300 S 11,300 S 3,795 S (7,505)
~
EXPENDITURES:
Public works 67,000 67,000 52,211 14,789
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES (55,700)(55,700)(48,416)7,284
OTHER FINANCING SOURCES:
Transfers in 55,000 55,000 55,000
NET CHANGE IN FUND BALANCE (700)(700)6,584 7,284
FUND BALANCE -BEGINNING OF YEAR 767,336 767,336 767,336
FUND BALANCE -END OF YEAR S 766,636 S 766,636 S 773,920 S 7,284
See independent uuditors'repon.
104
Attachment 14-120
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
MEASURE A SPECIAL REVENUE FUND
For tbe year ended June 30.2010
Variance willi
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies S 151,000 S 161,913 S 49,373 S (112,540)
Use of money and propeny 234 ~34
TOTAL REVENUES 151,000 161,913 49,607 (112,306)
OTHER FINANCING USES:
Transfers out (\51,000)(161,913)(49,373)112,540
NET CHANGE IN FUND BALANCE 234 234
FUND BALANCE -BEGINNING OF YEAR 33,928 33,928 33,928
FUND BALANCE -END OF YEAR S 33,928 S 33,928 S 34,162 S 234
See independent auditors'repon.
lOS
Attachment 14-121
See independent auditors'report.
106
Attachment 14-122
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACI'UAL
RANCHO PALOS VERDES TV CHANNEL SPECIAL REVENUE FUND
For the }'cnr ended June 3D,2010
Variance with
Final Budgel
Budgeted Amounts Positive
Originnl Final Actual (Negative)
REVENUES:
Other revenues S 1,000 S 1,000 S S (1,000)
Usc ofmoney and property 160 160 (12)(172)
•TOTAL REVENUES 1,160 1,160 (12)(1,172)
EXPENDITURES:
Administrotion 84,750 99,750 99,122 628
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES (83,590)(98.590)(99,134)(544)
OTHER FINANCING SOURCES:
Transfen;in 75,000 90,000 105,000 15,000
NET CHANGE IN FUND BALANCE (8,590)(8,590)5,866 14,456
FUND BALANCE (DEFICIT)-BEGINNING OF YEAR (4,714)(4,714)(4,714)
FUND BALANCE (DEFICIT)-END OF YEAR S (13,304)S (13,304)S 1,152 S 14,456
See independent auditors'report.
107
Attachment 14-123
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE·BUDGET AND ACTUAL
DR.ALLEN AND CHARLOTTE GINSBURG CULTURAL ARTS BUILDING SPECIAL REVENUE FUND
For rhe year ended June 30,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negalive)
REVENUES,
Use of money and property S 7,600 S 7,600 S 1,653 S (5,947)
•
TOTAL REVENUES 7,600 7,600 1,653 (5,947)
EXPENDITURES,
Park and recreation 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 S 508,103 S 202,664 S 202,156 S (11,386)
See independent auditors'report.
108
Attachment 14-124
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 YCllr ended June 3D,2010
Variance wilh
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Other revenues S 600,000 S 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 S 2,082 S 2,082 S 403,838 S 401,756
See independent auditors'report.
109
Attachment 14-125
CITY OF RANCHO PALOS YERDES
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 fi-om other agencies
Use of money and property
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE -BEGINNING OF YEAR
Variance wilh
Finnl Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
S 25,000 S 25,000 S 18,540 S (6,460)
48 ~48
25,000 25,000 18,588 (6,412)
(25,000)(25,000)(18,588)6,412
FUND BALANCE -END OF YEAR
See independent auditors'report.
s
110
s s s
Attachment 14-126
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 tbe year ended June 3D,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property S 90 S 90 S 32 S (58)
~
FUND BALANCE -BEGINNING OF YEAR 6,171 6,171 6,171
FUND BALANCE -END OF YEAR S 6,261 S 6,261 S 6,203 S (58)
See independent auditors'report.
111
Attachment 14-127
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX CAPITAL PROJECTS FUND
For the year ended June 30,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Other revenues S 97,000 S 97,000 S 79,624 S (17,376)
Use of money and property 10,100 10,100 4,386 (5,~14)
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 S 263,793 S 562,468 S 684,251 S 121,783
See independent auditors'report.
112
Attachment 14-128
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
Variance with
Final Budgel
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Olher revenues $1,300,000 $1,300,000 $3,898 S (1,296,102)
Use of money and property 137 .J7
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 S 1,325,170 $1,325,170 S 29,205 $(1,295,965)
See independent auditors'report.
113
Attachment 14-129
See independenl lluditors'repon.
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Attachment 14-130
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
REDEVELOPMENT AGENCY PORTUGUESE BEND CAPITAL PROJECTS FUND
For the year ended June 30,2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Other revenues 50,004 50,004
Use afmoney and property S 7,300 S 7,300 S 2,837 S (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 S 517,266 S 516,268 S 565,804 S 49,536
See independent auditors'report.
115
Attachment 14-131
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
UTILITY UNDERGROUNDING CAPITAL PROJECTS FUND
For the yenr ended June 30,201 0
Variance wilh
Finnl Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property S 4,100 S 4,100 S 1,389 S (2,711)
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FUND BALANCE -BEGINNING OF YEAR 273,770 273,770 273,770
FUND BALANCE -END OF YEAR S 277,870 $277,870 S 275,159 $(2,711)
See independent auditors'report.
116
Attachment 14-132
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 cnded June 30,2010
Variance wilh
Final Budget
Budgeted Amounts Positive
Original Finnl Actual (Negative)
REVENUES:
Use of money and property S 1,500 S 1,500 S 515 S (985)
~
FUND BALANCE -BEGINNING OF YEAR 101,553 101,553 101,553
FUND BALANCE -END OF YEAR S 103,053 S 103,053 S 102,068 S (985)
See independent auditors'report.
117 Attachment 14-133
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
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES:
Use of money and property
EXPENDITURES:
Public works
EXCESS (DEFICIENCY)OF REVENUES
OVER (UNDER)EXPENDITURES
FUND BALANCE -BEGINNING OF YEAR
S 19,500
108,176
(88,676)
1,362,231
s 19,500
108,176
(88,676)
1,362,231
S 7,086
36,094
(29,008)
1,362,231
S (12,414)
72,082
59,668
FUND BALANCE -END OF YEAR
See independenl auditors'repon.
S 1,273,555
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S 1,273,555 S 1,333,223 s 59,668
Attachment 14-134
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
Attachment 14-135
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
June 30,2010
Equipment Building Employee
Replacement Replacement Benefits Totals
ASSETS
CURRENT ASSETS:
Cash and investments $2,857,924 $1,133,864 $271,790 $4,263,578
Receivables:
Interest 3,188 1,265 154 4,M7
Prepaid items 121,867 121,867
TOTAL CURRENT ASSETS 2,861,112 1,135,129 393,811 4,390,052
NONCURRENT ASSETS:
Capital assels:
Property and equipment 1,401,374 1,401,374
Accumulated depreciation (1,138,027)(1,138,027)
TOTAL NONCURRENT ASSETS 263,347 263,347
TOTAL ASSETS 3,124,459 1,135,129 393,811 4,653,399
LIABILITIES
CURRENT LIABILITIES:
Due to other funds
Accounts payable and accrued liabilities 42,665 92,811 34,864 170,340
TOTAL LIABILITIES 42,665 92,811 34,864 170,340
NET ASSETS
Invested in capital assets 263,347 263,347
Unrestricted 2,818,447 1,042,318 358,947 4,219,712
TOTAL NET ASSETS $3,081,794 $1,042,318 $358,947 $4,483,059
See independent auditors'repon.
120
Attachment 14-136
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
Equipment Building Employee
Replacement Replacement Benefits Totals
OPERATING REVENUES:
Charges for services $69,700 $$2,126,672 $2,196,372
OPERATING EXPENSES:
Personnel services 3,548,913 3,548,913
Materials and supplies 118,999 118,999
Maintenance 50,320 296,995 347,315
Depreciation 119,385 119,385
TOTAL OPERATING EXPENSES 288,704 296,995 3,548,913 4,134,612
OPERA lING LOSS (219,004) (296,995)(1,422,241 )(1,938,240)
NONOPERATING REVENUES:
Other revenues 6,806 6,806
Inveshnenl income 14,864 6,456 846 22,166
TOTAL NONOPERATING REVENUES 14,864 13,262 846 28,972
LOSS BEFORE TRANSFERS (204,140) (283,733)
(1,421,395)(1,909,268)
Transfer in 1,575,501 1,575,501
CHANGE IN NET ASSETS (204,140)(283,733)154,106 (333,767)
TOTAL NET ASSETS -BEGINNING OF YEAR 3,285,934 1,326,051 204,841 4,816,826
TOTAL NET ASSETS -END OF YEAR $3,081,794 $1,042,318 $358,947 $4,483,059
See independent auditors'report.
121
Attachment 14-137
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30,2010
Equipment Building Employee
Replacement Replacement Benefits Totuls
CASH FLOWS FROM OPERATING ACTIVITIES,
Rcteipts from intcrfund services provided S 69,700 S S 2,126,672 S 2,196.372
Payments to suppliers (215,975)(246,619)(462,594)
Pllymcnts 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 construction of copilal assets (64,955)(64,955)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES,
Receipts from other funds 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 S 2.857,924 S 1,133,864 S 271,790 S 4,263,578
RECONCILIATION OF OPERATING LOSS
TO NET CASH USED
BY OPERATING ACTIVITIES,
Operating loss S (219,004)$(296,995)$(1,422,241)S (1,938,240)
Adjustments to reconcile opcrnting loss 10
net cush used by operating activities:
Depreciation 119,385 119,385
Changes in operating assets nnd 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 OPERA TlNG ACTIVITIES $(146,275)S (246,619)S (962,347)S (1,355,241)
See independent auditors'report.
122
Attachment 14-138
STATISTICAL SECTION
IZ3
Attachment 14-139
Sacred Cove
124
Attachment 14-140
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 COlllaill Irelld illJarlllalioll 10 help Ihe reader ullderslalld how Ihe Cily's
financial pelfonnance and weI/-being have changed over lime.
Revenue Capacity 133
These schedules cOlllaill i'yorlllalion 10 help Ihe reoder assess Ihe City's mosl signijicalll
local revenue source,property Ia.:r.
Debt Capacity 137
These schedules preselll ilyormalion 10 help Ihe reader assess Ihe affordability oj Ihe
City's currenl levels oj oUlslalldillg debl alld Ihe city's abililY 10 issue addiliollal debl in
Ihe fillllre.The City does nol have general bond indeb!edlless or deb!issued wilh pledged
reVelJUe.
Demographic and Economic Information 140
These schedules offer demographic alld economic illdicalars 10 help Ihe reader ullderslalld
the environment wi/flilllVIIle"the City's financial activities take place.
Operating Infonllation 143
These schedules contain sen4ces Gnd infrastructure dala 10 help the reader understand
how Ihe i,yormalion in Ihe City's fillancial reporl relales 10 Ihe sen/ices Ihe Cily provides
Gnd the activities it pelforms.
Sources:Unless otherwise noted,the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
125
Attachment 14-141
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
Governmental activities
Invested in capital assets,net of related debt $93,636 $94,895 $92,499 $94,023 $109,991 $109.746 $109,376 $107.H67 $115,331
Restricted 10.327 10,661 11.586 12.075 12.417 12.163 1.000 1.000 1.000
Unrestricted 13.666 13.004 14.271 15.659 16.024 17.H23 30.471 31.277 31.855
Total governmental activities nel assels $117.629 $118.560 $118.356 $121.757 $138,432 $139.732 $140.847 $140.144 $148.186
Business-type activities
Invested in capital assets,nel of related debl $1,311 $2.158 $5,599 $12,477 $(2,45H
Restricted
Unrestricted $2.000 2.799 5.258 7.740 2,IOH 2.825
Total business-Iype activities net assets $2.000 $4.110 $7,416 $13,339 $14.585 $15.283
Primary government
Invested in capital assels,net of related debt $93,636 $94,895 $92,499 $94,023 $111.302 $111.904 $114,975 $120.344 $127.7H9
Restricted 10.327 10,661 11.586 12.075 12.417 12.163 1.000 1.000 1.000
Unrestricted 13,666 13,004 14.271 17.659 18.823 23,081 38.211 33.3H5 34.680
Total primary government nel assets $117.629 $118,560 $118.356 $123,757 $142.542 $147,148 $154.186 $154,729 $163,469=
The infonnation in this table is not availublc prior to Fiscal Year 2002,as the City did not implement GASB 34 until Fiscal Year 2002.
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City of Rllnchu Palos Verdes
Chllngcs in Ncr Assets
Lilst Nine Fiscal Years
(accrual bnsis of lu:collnting)
(amounts expressed in thousands)
Fiscal YeAr
2002 2003 2004 2005 2006 2007 2008
2009 2010
Expenses
Governmental activities:
Adminislrntion $3.069 $3.294 $3.499 $4,055 $4,350 $4.953 $4.724 $6.357 $7.824
Public safely 2.898 3.094 3.024 3.079 3.437 3.751 4.044 4.233 4.242
Public work."7.283 7.954 7,462 9.488 9.290 9.969 9.026 10.555 13.633
Parks nnd 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-depurtmcntal 320
Interest on long-ternl 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-Iype activities:
Water Qunlity Flood Protection 47 271 301 437 580
Total primnry government expenses $16.126 $17.594 $17.502 $20.182 $21.113 $23.285 $22.202 $26.152 S 31.240
Program Revenues
Govemmentllilictivilies:
Charges for services:
Administration S 157 $87 $69 $62 $35 $29 $538 $555 $681
Public sufety 433 235 165 163 224 332 316 267 229
Public works 78 252 217 131 37 185 1.002 422 1.356
Parks nnd recn:ntinn 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
OpLTdting grants IUld contributions 6.877 2.971 2.836 2.728 3.894 4.200 3.570 2.963 6.633
Capital grants Dnd 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 grunts and cOlltributions
Capital grants and contributions
Total business-type uctivitics progrum revenues
Total primary government program revenues S 9.240 S 4.886 $4.693 $8.837 S 22.853 S 6.713 $9.141 $6.975 S 18.738
Net (expense)frevenue
Governmental activities $(6.886)$(12.708)$(l2.809)${I 1.345)S 1.787 $(l6.301)S (12.760)S (18.740)$(I 1.922)
Business-type activities (47)(271)(301)(437)(580)
Totill primary government net expense $(6.886)S (12.708)S (12.809)S {I 1.345)S 1.740 S (16.572)S (13.061)S (l9.177)S (12.502)
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Changes in Nt!Assets
Lnst Nine Fiscal Years
(aecrulli bll~'ils of accounting)
(amounts expressed in thousands)
FisClll Year
2002 2003 2004
2005 2006 2007 2008 2009 2010
General Revenues lind Other Changes in Net Assets
Governmental activities:
Tlixes
Property tn:<cs $5,253 $5,335 S 5,706 $5,840 $9,621 S 10,235 S 10,935 S 11,462 $\I ,431
Franchise laxes 1.139 1.087 1,275 \.307 1.454 1.512 1.599 1.709
1,711
Snles taxes 1,093 1.003 1.205
1,276 1,214 1,381 1.056 1.053 1,246
Utility user taxes 1.812 1,832 1.851 1.901 2.191 2.271 2.329 2,267 2,395
Other tnxes 2.744 3,495 2.867 4.545 727 363 820 690 2,667
Inveslmenl income 814 371 331 594 997 1.615 1.555 631 207
Olher (67)517 2,481 1.283 793 2,101 300 225 307
Trnnsfers 12,000)12.109)(2.017) (4.719)
Total governmental activities 12.788 13,640 15,716 14,746 14,888 17,461 13.875 18,037 19,964
Business-typc activities:
Investment income 48 51 283 lOS 14
User Fees 1,188 \.222 1.578 1.264
Other 320
Transfers 2,000 2.109 2.017 4.719
Total business-type [ll,;tivities 2,000 2,157 3,576 6.224 1.683 1.278
Total prilllllry government $12.788 $13,640 S 15.716 S 16,746 S 17,045 S 21,037 S 20.099 S 19.720 $21.242
Change in Net Asscls
Govemmenl:lI nctivities $5.902 S 932 S 2,907 S 3,401 $16,675 $1.160 $1.\15 $(703)$8,042
Business-type activities 2,000 2,\10 3,305 5,923 1.246 698
TolU!primary government net expense $5.902 S 932 S 2,907 S 5,401 S 18,785 $4,465 S 7.038 S 543 $8,740
The information in this table is nol nvailnblc prior (0 Fiscnl YeDr 2002,as the City did 1I0t implement GASB 34 until Fisenl Year 2002.
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Governmental Activities Tax Revenues By Source
Last Nine Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
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 1,38 I 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 infonnation in this table is not available prior to Fiscal Vear 2002,as the City did
not implement GASH 34 until Fiscal Vear 2002.
129
•
Attachment 14-145
General Fund
Reserved
Designated
Unreserved,Undcsignated
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 otlter Governmental Funds
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Ten Fiscnl 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) (16,823) (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 oflong-term debt was recorded in an account group instead of the Debt Service Fund.
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Changes In Fund Balnnce.'lllf Governmental Funds
Last Ten Fiscal Years
(Mudlfied AccrilAl basis uf Accounting)
(Amuunts expressed in thllusands)
200.2002 2003 2004 2005 2006 2007 2008 2009 ~O
Revenues
Tnxes $10,309 $10,677 $11.046 $12.081 $13.573 $15,238 $16.453 $17,062 $17.573 $19.844
Licenses lind permils 1.164 1,245 1,463 1.310 1,326 1,440 1.763 1,914 1,755 1.954
Fines and forfeitures 139 117 115 102 108 171 237 260 214 179
Usc of money rmd propcny 1,971 1.153 804 733 1,306 7,038 3,480 2,108 1,240 1,601
Charges for servh:es 197 217 205 379 152 49 61 60 163 81
Revenues from other ngeneies 4,816 8.170 4.318 3,453 7.848 15,51 I 4,118 4.647 3,575 10.180
Other Revenues 882 563 554 2,363 1.038 155 201 1.563 467 4.806
Total Revenues 19,478 22,142 18.505 20,421 25.351 39,602 26.313 27,614 24,987 ---1!,645
Expenditures
Administralion 3,052 2,915 3,092 3,32R 3,852 4,041 4,607 4,411 4,915 5,720
Public Sufety 2.733 2,898 3,094 3,039 3,092 3,438 3,751 4,044 4,233 4,242
Public Wnrks 4.972 7,449 5.292 4.801 6,302 5.277 6,R64 5.768 7,075 6,896
Parks nnd Recrentiun 596 669 786 946 965 1,593 1.319 1,281 1,354 1,702
Community Development 1,778 1,950 2.194 2,362 2,302 2,361 2,681 2,496 2,723 2,604
Non·Departmcnlal 320
Pass Thrnugh to other agencies 91 102 137 156 188 200 152 169 187
Capitil.lOutlay 7.015 8.246 3,893 368 4,912 20,202 3.124 3.112
2,459 14,567
Debt Service
Principal 184 20U 248 316 35U 419
Inlerest 1,128 930 836 805 905 1.150 1.390 1.370 1.101 886
Total Expenditures 21.365 25,159 19,324 15,805 22.702 38,462 24.136 22,967 24,397 37,356
Excess of Revenues over (under)Expenditures (1,887) (3,017)(819)4.616 2.649 1.140 2,177 4.647 590 1.289
Other Financing SOUl'"ce.,(lIse.'l)
Trnnsfers in 5.013 4.294 1.676 1.844 6.180 4.989 4.489 3.158 5,815 4.616
Transfers out (5,165)(4.877)(1.833)(1.844)(8.1801 (7,247)(6.606)(7,924)(5.815)(6,192)
Bond Proceeds
Advonces to the Redevelopment Agenc)'855
Tolal Other Fimmcing Sllurces (uses)703 (583)(\57)(2.000)(2.258)12.117)(4.766)(1.576)
Net chunge in Fund Balances $(1.184)$(3.600)$(976)$4.616 $649 S (1.118)$60 $(119)$590 $(287)
Cost of Assets Capitalized 11.047 4,184 379 4.623 19.465 2.800 2.764 1,895 10,866
Debt Services liS a percentage of Non-Capital Expenditures 6.6%5.5%5.2%6.0%7.1% 7.7%8.3%6.4%4.9%
I:The cost ofnssets capitnlized from Governmental Fund expenditures is not nVil.ilable prior to Fiscnl Year 2002.as the City did not implement GASS 34 un~1 Fiscal Year 2002.
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City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts expressed in thousands)
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
I:Most of the Motor Vehicle In Lieu Fees are received as property tax beginning in 2006.
The infonnation in this table is not available prior to Fiscal Year 2000,as the City has
not retained detailed general ledger infonnation sufficient to provide tax revenue by type
prior to Fiscal Vear 2000.
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Attachment 14-148
City of Rancho Pains Vcrdes
Assessed Valuc and Estimnted Actual Value of Taxahie Property
Last Ten Fiscal Yenrs
(In thousnnds of dnllnrs)
Totnl Estimated Assessed
Fiscal Less Taxable Direct Aclual Fnctor of Vnllie llS n
Year Residential Commercial Industrial Olhu lInsecnred Tax·Exempt Assessed Tn TlIxnblc Taxable Percentage of
End Properly Pro pert)·Property Propert)'Propert)·Pro pert}·Value R.t,(1)Value (2)Assessed Value (3)Actual Vahlc
2001 $5.065,424 $74.006 $$204.529 S 18.423 $69.733 $5,362.382 0.00679 S 7.136.526 1.33085 75.14%
2002 5,410.470 73.923 197.904 19.641 71.660 5.701.938 0.00787 7.588.424 1.33085 75.14%
2003 5.730,464 70,475 191.541 21.741 73.768 6.014,221 0.00732 8,004,026 1.33085 75.14%
2004 6,137,760 74.753 1.660 179.867 22,889 73,701 6,416,930 0.00790 8.539.971 1.33085 75.14%
2005 ..6,530,448 76,445 1.691 317,463 22,222 218.193 6.730,076 0.00792 8,956,722 1.33085 75.14%
2006 ..7,034.406 88.691 3,086 365,175 21.561 218,916 7,294.003 0.00789 9,707,224 1.33085 75.14%
2007 7.548,956 111.338 3.148 513,876 20,378 226,598 7,971,098 0.00787 10,608.336 1.33085 75.14%
2008 8.080.905 170,825 3,211 370,134 26.546 152,181 8,499.4411 0.00793 11.311,480 1.33085 75.14%
2009 8,436,947 281.813 3.275 367,999 46.858 166,268 8.970,624 0.00796 11.938,555 1.331185 75.14%
2010 8,333,042 263,157 3.341 598,539 49,628 236.925 9,010,782 0.00637 9.515,566 1.05602 94.70%
Source:2009-10 &2006-07 County Assessor dala.MuniServiccs.LLC
"Assessed values have been revised from prior CAfR publications to comply with GASB No.44 sltlndards and on-going consistency ill reporting methodologies.
(I)Total Direct Tax Rate is represented by TRA 001-224.This percentage is City'S shared portion within 1%ofCounly's gcncrnllcvy.
(2)Estimated Actuol Valuc is derived from a series of calculations comparing mediallossesscd values from 194010 current median sole prices.
Based on these calculations a foetor wos extrapolated and applied to current assessed values.
(3)TIle Factor used to calculate Estimated Actuol Valuc was calculated for 2006-07 and applied to prior years for historical purposes.
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City of Rancho Palos Verdes
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Flood Metropolitan Palos Verdes Community Unified Total Direct
Fiscal General Los Angeles Control Water Library College School &Overlapping
Year Levy (1)County District District District District Districts Tax Rates
2001 1.00000 0.00131 0.00156 0.00880 0.01138 -0.05689 1.07994
2002 1.00000 0.00113 0.00107 0.00770 0.00959 0.01600 0.0636\1.09909
2003 1.00000 0.00103 0.00088 0.00670 0.00970 0.01460 0.05206 1.08498
2004 1.00000 0.00099 0.00047 0.00610 0.00896 0.01986 0.09191 1.12830
2005 1.00000 0.00092 0.00024 0.00580 0.00852 0.01810 0.10382 1.13738
2006 1.00000 0.00080 0.00005 0.00520 0.00781 0.01430 0.10384 1.13195
2007 1.00000 0.00066 0.00005 0.00470 0.0073\0.02146 0.12091 1.15510
2008 1.00000 0.00450 0.01370 0.00878 0.14310 1.17010
2009 1.00000 0.00430 0.00680 0.02212 0.14500 1.17817
2010 1.00000 .0.00430 0.00662 0.02311 0.15\81 1.18539
Source:2009-10 &2006-07 County Auditor/Controller data,MuniServices.LLC
Notc:Tax rates are per $100 of assessed value.
Los Angeles County Auditor/Controller TRA 001-224
(I)In 1978.California voters passed Proposition 13 which set the property tax at a 1.00%fixed amount.11,is 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.
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City of Rllneho Palos Vcnles
Prlndpnl Property Tax Payers
Last Flsenl Year and Nine Years Ago
2009·[0 2000·01
Percentage of PerceDtage of
Tunblc Totnl City TunlJlc Taxable Totnl City Tnsublc
Value (S)funk Value (./.)Value <S)Ronk Value C-;.)
S 143.871.679 I 1.60%
89,896,276 ,1.00%
62,442,705 J 0.69%
46,814,659 4 0.52%
35,232.103 S 0.39%
28,496.134 6 0.32~'
26.009.990 7 0.29%
25.800.250 8 0.29%
22,185.368 9 0.25%
20,101,293 10 0.22%
13343.138 II 0.15%
11.964.600 "O.l3~'
8,405.164 IJ 0.09".
8,042,490 14 0.09%
7,781,871 IS 0.09%
7.623,193 16 0.08%
7,140.000 17 0.08%
7,059.800 IS 0.08%
6.650.000 19 0.07%
6,570,900 '0 0.07%
Tupoycr
Long Point Development LLC
PPC Villas RPV LLC
VHPS LLC
PV Victoria Apartments LLC
TCITilces Rancho Palos Verdes LLC
Western Riviera Investors
Golden Cove LLC
COX Communication Inc.Orunge
Bclmont Village PRV LP
Johnson Eric C
Tridiamond LLC
Ruffin Phillip G
Gl1ldney Stephcn r
California Water Service Company
Victoria Apartments
Palos Verdcs TelT3ce LId
Amdan Investment LLC Lessee
Gens Igor &Ann:t
Rnleigh Group One LLC
Snitta Christopher L
Ocean Tmils LII
P V Victorio ApnrtmenlS LlC
Connecticut Gencr.J1life
RPV Associates
Westcrn Riviern Investors
York long Point Associates
PV Termees Inc.
American Golf.Inc.
Gardner Theodore II
California Water Service Company
Palos Verdes 2 LLC
Wannington PV Associntes LP
Victorill Apartments
Rancho Plllos Verdes Villas LLC
Brnun William
Donahue Schriber Rcalty Group
LA Barna Jnmes G Co TR
Foster Robert D &Gina 0
Briles Richard &Kcnnnn
Brndford Edward T &Pllullce G
Totals S 585.531.613
TOlaJ Taxable Value S 9.010.782.000
Source:Los Angeles County Assessordilta.MuniScrviccs.LLC
IJ5
6.50~1l
100.00%
52.283,693
39,231,584
27,002.052
26,893,555
23.892,133
21,155,726
18,492,430
13,400,455
13,175.290
10,263,028
9.815,000
7,908.883
6,523,049
6.460.148
6.060.000
5,817,843
5.112,326
4,630,624
4,500.000
4.360.095
S 306.977.914
S 5362,381.799
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6
7
8
9
10
II
"13
14
IS
16
17
IS
19'0
0.98%
0.73%
0.50%
0.50':-.
0.45%
0.39%
0.34%
0.25%
0.25%
O.I~'
0.18%
0.15%
0.12%
0.12%
0.11%
0.11%
0.10%
0.09%
0.08%
0.08%
5.72%
100.00%
Attachment 14-151
City of Rancho Palos Verdes
Property Tax Levies and Collections
Lnst Six Fiscal Years
(amounts expressed in thousands)
Fiscal
Year
2005
2006
2007
2008
2009
2010
$
Total Tax
Levy for
Fiscal Year
4,284
4,643
5,078
5,351
6,116
5.447
Collected within the
Fiscal Year of the Levy
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%
Collections in
Subsequent Years
$144
36
10
10
8
8
Total Collections to Date
Percentage
Amount of Levy
$4,145 96.76%
4,542 97.83%
4,809 94.70%
5,327 99.55%
5,742 93.88%
4,925 90.41 %
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.
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City of Rancho Palos Verdes
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts expressed in thousands,except pcr capita amount)
Governmental Activities
RDA RDA Total Debt Ratio of Debt Ratio of Debt
Fiscal Tax Increment Deferred Interest Primary Per to Property to Personal
Yenr 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
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Cit)'of Rancbo Palos Verdes
Direct and Overlapping Governmental Activities Debt
Current Year
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DERT:
Los Ancdes County Flood Control District
Metropolitan Water District
Los Angeles Community College District
Los Angeles Unified School District
Palos Verdes Unified School District
City of Roncho Palos Verdes
Palos Verdes Librnry District
Los Angeles County RCb>10nal Park and Open Space Asscssment District
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
Total Debt City's Shure of
6/30121110 %Anplicahle tIl Dcht 6/30/10
S69,61O,OOO O.980~~S682,I78
264,220,000 0.49~~1,313,173
2,365,5 J5,000 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'l-~2,150,896
111,188,002 ~
OVERLAI'PING GENERAL FUND DEBT:
Los Angeles County Gencrnl Fund Obligations
Los Angeles County Pension Obligations
Los Angeles County Superintendent of Schools Cenificatt'S of Participation
Los Angeles County Sanitation District No.5 Authority
Los Angelcs County South Bny Cities Sanitation District Authority
Los Angeles Unified School District Certificates ofPnrticipation
TOTAL GROSS OVERLAPPING GENERAL FUND DEBT
less:Los Angeles Unified School District QZABs supported by investmcnt fund
TOTAL NET OVERLAPPING GENERAL FUND DEBT
5855,695,839
J 18,486,192
13,185,458
56,909,182
9,696,146
456,780,324
0.966%
0.966%
0.96M~
10.628%
4.455%
0.207%
58,266,022
1,144,577
127,372
6,048,308
431,963
945535
S 16,963,777
(71833)
16,891,944
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
SI28,151.779 (2)
SI28,079,946
(I)Percentage ofovcrlapping agency's assessed valuation located within boundaries of the city.
(2)Excludes tax and revenuc anticipation notes,f'Cvenue,mortgage Tevrnue and ta:<allocation bonds and non-bondL-d C<lpitallcase obligations.
2009-10 AssL'Sscd Valuation:
RedevclopmentlncrClncntal Valuation:
Adjusted Assessed Valuation:
Rn!io~tn 2009·10 As~cssed V:lhliltion:
Direct Dcbt
Total Diret:t and Overlapping Tax and Assessment Debt
Ratios tn Adjusted Assessed Valuation:
Gross Combined Total Debt
Net Combined Total Debt
STATE SCHOOL BUILDING AIO REllA YABLE AS OF 6130/10:
Source:2009-10 California Municipal Sialislical Co.
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9,088,977,877
107701 529
S8,98!,276,348
0.00%
1.22%
1.43%
1.43%
so
Attachment 14-154
City ufRancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Debt Limit
Total Net Debt applicable to limit
2001
$804.357
2002
$855.291
2003
$902.133
2004
$962,539
Fiscal Year
2005
$1,02Ll77
2006
$1,105.647
2007
$1.195.665
2008
$1,274.916
2009
$1.345,594
20\0
$1,351,617
Legal Debt Margin
Total Net Debt npplicable to the limit
as a percentage of Debt Limit
$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%
Tolal Taxable Vallie (see page 133)$9,010,782
Debt Limit (15%or total taxilble value)1.351.617
Debt applicable to limil
Leg'll Debt Murgin $1,351,617
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City ofRnncho Palos Verdes
Demographic and Economic Statistics
Last Ten Fi~cal Years
Per Capita
Fiscal Personal Personal Median
Year Population (I)Income (2)Income (2)Ag'(4)
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
2009-10 42.642 2.250,346,266 52.773 44.9
"Public
Schoo)
Enrollment
12.033
11,900
County
Unemployment
Rate (%)(3)
7.50%
11.60%
Cily
Unrmploymcnl
R.t.(%)(3)
1.50%
1.50%
1.50%
2.50%
4.00%
Cuunt)'
I'opulation (1)
10.301,658
10,355,053
City
Population
(%uceuuoty)
0.41%
0.41%
Source:2009-10 MuniServiccs.LLC
I.)Population Projections arc provided by the California Department of Finance Projections.
2.)Income Datn is provided by the United SUlIes Census Data and is adjusted for innation.
3.)Unemployment Daln is provided by the EDD's Bureau of Labor Statistics Department.
4.)Median Age reflects the US Census data estimation table.
"Sludent Enrollment renccts the total number of sludents enrolled in the Palos Verdes Unified
School District.Olher school districts within the City ilrc not included.
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City of Rancho Palos Verdes
Principal Sales Tax Payers
Last Fiscal Yenr nnd Nine Yenrs Ago
2009-10 2000-01
Taxpayer Business Type T:lxpuycr Business Type
7-E1even Food Stores
America's Tire
Asaka Japanese Cuisine
Carl's Jr.Restaurant
Centinela Feed &Pet Supplies Inc
Chevron Service Slations
Coco's Restaurants,Inc.
Daniel J Jeldum
EI Pallo Loco Inc.
Good Night Mattress
Green Hills Memorial Park,Inc.
Green Hills Mrtury-Memrl.Chapel
Hughes Markets
Int')House Of Pancakes #956
Jack In The Box
Kragen Auto Parts#1649
Los Verdes Country Club
Marshalls #1026
Mobil Service Stations
Rolling Hills Plastics,Inc
Smart &Final #306
Terranea Resort
The Admiral Risty
Trader Joe's #233
VH Property Corp.
Food Markets
Auto PartsfRepair
Restaurants
Restaurants
Miscellaneous Retail
Service Stations
Restaurants
Miscellaneous Retail
Restaurants
Furniture/Appliance
Miscellaneous Other
Miscellaneous Other
Food Markets
Restaurants
Restaurants
Auto PartslRepair
Restaurants
Apparel Stores
Service Stations
Light Industry
Food Markets
Restaurants
Restaurants
Food Markets
Miscellaneous Retail
Albertson's Food Centers
America's Tire
Blockhuster Entertainment
California Do It Center
Carls Jr Restaurant
Chevron Service Stations
Cocos Restaurants Inc
Dick's Hallmark
El Pallo Loco Inc
Fedex Office
Golden Cove Unocal 76 Svc Stn
Golden Lotus Restaurant
Green Hills Memorial Parkinc
Green Hills Mrturymemrlchapel
Hughes Markets
Jack In The Box
Kragen Auto Parts
Los Verdes Country Club
Marie Callender 35
Mobil Service Stations
New York Food &Catering
Ocean Trails Golf Club
The Admiral Risty
The Brixey Corporation
Trader Joe's Company
Food Markets
Auto PartsfRepair
Miscellaneous Retail
Bldg.Malis-Retail
Restaurant --
Service Stations
Restaurants
Miscellaneous Retail
Restaurant
Miscellaneous Retail
Service Stations
Restaurants
Miscellaneous Other
Miscellaneous Other
Food Markets
Restaurant
Auto PartsfRepair
Restaurants
Restaurants
Service Stations
Restaurants
Restaurants
Restaurants
Office Equipment
Food Markets
Source:SBOE data,MuniServices,LLC
Top Sales Tax Producers listed in alphabetical order.
141
Attachment 14-157
Employcr
Palos Verdes PeniJl5ula Unified School Districl (I)
Temmen Resort Hotel
Trump National
Mal)'mount College
Ralphs
Keller Williams Renlty
Belmontcorp Ltd
Green Hills Memorial Pari:
American Golf Corp
Trndcr Joc's
Palos Verdes Peninsula Unified School District (I)
Mlll)'mOunt College
Keller Williams RC<1hy
Belmontcorp Ltd
American Golf Corp
Bally TOUlI Fitness Corp
Salvation Army
Remax Palo Verdes RC<11ty
Pic Rise Ltd
Remax Execs
Subtotal of Principal Employers
Total City Employment (1)
City of Rancho Palos Verdes
Principal Employers
Currcnt Ycnr Dnd Threc Years Ago
2010 2007
Percentage Perccntage
ofTotnl CIt)'arTalal City
Emplovecs ~Employment Employces Rank Employmcnt
1,970 I 9.90%
730 3 3.67%
300 3 I.Sm
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 3 0.77%
112 3 0.51%
97 4 0.44%
60 5 0.27'~
50 6 0.23%
4J 7 0.20%
37 8 0.17%
30 9 0.14%
39 10 0.13%
3.715 18.72%2.628 11.95%
19.900 22.000
Source:Direct Contact with Local Businesses.
I:The number shown represents the tOUlI employee COUnt for the entire DistricL The District docs not
track employees by locntion.
2:Tolal City Employment pro\'ided by EOD Labor Force Data.
NOle:There is cunently no agency or service lIlat monitors employees by business localed
within City limits.Allnv:lilable information is forme greater Los Angeles area.The City is
prim:lrily:l bedroom community with \'ery little comme~illl activity.Data was obtained by
making inquiries with the Community Development Depanment and the Cily MADllger's office
10 determine the entities that nre likely the largest employers.Then those likely employers
were contacted directly 10 determine the number of employccs.This data is not nVllill1ble prior
to 2007.
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Attachment 14-158
City of Rancho Palos Verdes
Full·time Equivalent City Government Employees by Function
Last Ten Fiscal Years
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Function
General Government 41 42 45 45 45 47 50 55 58 53
Recreation Pllrt-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
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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 3.8mil 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 al Parks 1.774 2.134 2.935 2.893 2,856 2,647 2,772 2.708 2,398
Docent Led Nature I-likes 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
Plao 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 infonnation presented in this table was not collected by the City prior to Fiscal Year 2002.r
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City of RliDCho Palos Verdes
Capital Asset Stl1tistics 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 I
Public Works
Street Miles 143 143 143 143 143 143 143 143 143 143
Traffic Signals 13 14 15 15 15 15 IS 16 16 16
Parks and Recreation
Parks 14 IS 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
I:Public s:lfcty services are contracted with other agencies.The City does not own any public safety capit:ll :lssets.
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Tide Pools Aerial View
Attachment 14-162
~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.dieWevans.com
January 19,2011
MICHAEL R.LUDIN,CPA
CRAIGW.SPRAKER,CPA
NITINP.PATEL,CPA
ROBERT J.CALLANAN,CPA
'PIDLIP Ii HOLTKAMP,CPA
'THOMAS M.PERLOWSKI,CPA
'HARVEY J.SCHROEDER,CPA
KENNETHR.AMES,CPA
WilLIAM C.PENTZ,CPA
•A PROFESSIONAL CORPORATION
INDEPENDENT AUDITORS'REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor
And Members of City Council
City of Rancho Palos Verdes
Rancho Palos Verdes,California
We have audited the financial statements of the governmental activities,the business-type activities,
each major fund and the aggregate remaining fund information of the City of Rancho Palos Verdes,
California as of and for the year ended June 30,2010,which collectively comprise the City's basic
financial statements and have issued our report thereon dated January 19,2011.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.
Internal Control Over Financial Reporting
In planning and performing our audit,we considered the City's internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinions on the
financial statements,but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control over fmancial reporting.Accordingly,we do not express an opinion on the
effectiveness of the City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees,in the normal course of performing their assigned functions,to prevent,or
detect and correct misstatements on a timely basis.A material weakness is a deficiency,or a
combination of deficiencies,in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented,or detected and corrected on a
timely basis.
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OTHER OFFICES AT:2965 ROOSEVELT STREET
CARLSBAD,CALIFORNIA 92008-2389
(760)729-2343.FAX (760)729-2234
613 W.VALLEY PARKWAY,SUITE 330
ESCONDIDO,CALIFORNIA 92025-2598
(760)741-3141.FAX (760)741-9890
Attachment 14-163
Internal Control Over Financial Reporting (Continued)
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be deficiencies,significant deficiencies or material weaknesses.We did not identify any
deficiencies in internal control over fmancial reporting that we consider to be material weaknesses,as
defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Rancho Palos Verdes,California's
financial statements are free of material misstatement,we performed tests of its compliance with
certain provisions of laws,regulations,contracts and grant agreements,noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly,we do not express such an opinion.The results of our tests disclosed no instances of
noncompliance and other matters that are required to be reported under Government Auditing
Standards.
This report is intended solely for the information and use of City Council,management,and others
within the City of Rancho Palos Verdes,California,and federal awarding agencies and pass-through
entities and is not intended to be and should not be used by anyone other than these specified parties.
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Attachment 14-164