RPVCCA_SR_2011_02_15_07_FY10-11_Midyear_Financial_ReportCrrvOF
Project Manager:
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
MEMORANDUM
HONORABLE MAYOR &CITY COUNCIL MEM(iRS
DENNIS McLEAN,DIRECTOR OF FINANCE &
INFORMATION TECHNOLOGY
FEBRUARY 15,2011
FY10-11 MIDYEAR FINANCIAL REPORT
CAROLYN LEHR,CITY MANAGER a2---
Kathryn Downs,Deputy Director of Finance &Information
Technology q",1)
RECOMMENDATION
1)Receive and file the FY10-11 Midyear Financial Report; and
2)ADOPT RESOLUTION NO.2011-,A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES,AMENDING RESOLUTION 2010-55,THE
BUDGET APPROPRIATION FOR FY10-11,TO ADJUST THE BUDGET IN VARIOUS
FUNDS OF THE CITY.
EXECUTIVE SUMMARY
The City of Rancho Palos Verdes continues to experience a stable financial condition.The
City has established a prudent reserve level,with one of the lowest expenditure levels per
capita in the South Bay.The City is receiving a significant amount of transient occupancy
tax (TOT),sales tax revenue has increased,and property tax revenue remains stable.The
state continues to face a cash and budget crisis;and although the California voters have
approved increased protections for local revenue,the state is actively looking for solutions
that may ultimately impact the City.
If City Council adopts Staff's recommendations,including the General Fund transfer of $2.6
million to the Capital Improvement Projects (CIP)Reserve,the revised estimate of excess
General Fund Reserves would be $96,517 at June 30,2011.
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FY10-11 Midyear Financial Report
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A summary of the FY10-11 General Fund budget follows.
Current Proposed
FY10·11 Budget Revised
-~Revenues 21,747,717 22,752,717
Expenditures (17,976,605)(17,929,485)
Net Transfers (3,854,099)(6,506,099)
.Jfil[fjJlfjJ)JiIfII~J£illIIJ.__;1
Reserve Policy 8,988,303 8,964,743
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A summary of revised estimated fund balances as of June 30,2011 has been prepared
(see Attachment A -"FY1 0-11 Combined Summary of Funds -Midyear Financial Report").
During the 2011 budget process,Staff will consider impacts discussed in this report,the
accompanying proposed FY1 0-11 budget adjustments,and revenue trends and changes.
BACKGROUND
The Municipal Code of the City of Rancho Palos Verdes requires that a midyear review of
the annual budget be presented to the City Council.Based upon Staff's analysis of the
City's financial activities during the first half of FY1 0-11,there are a number of items for
which the operating budget should be adjusted,as described in this report.Like previous
years,midyear adjustments are a routine practice in conjunction with this report.If the
activity of a particular fund,department or program is not discussed,there is nothing
significant to report and revenues and expenditures are not expected to materially deviate
from the amounts budgeted.
The Summary Schedule of General Fund Revenue is presented below.It is important to
understand that these revenue estimates are based upon Staffs analysis using trend
comparisons with previous years,and reports provided by state,county and local agencies.
It should be noted that future economic activity,legislation and policy decisions,as well as
any other unforeseen circumstances could affect the City's revenue stream for the
remainder of FY1 0-11.
The midyear financial report also includes discussion and analysis of anticipated
expenditure variances and other relevant developments related to the FY10-11 budget.
Staff has included the "FY1 0-11 Combined Summary of Funds -Midyear Financial Report"
(Attachment A)to summarize the estimated FY1 0-11 activity and ending fund balances for
all funds within the City.The schedule includes revised revenue and expenditure
estimates based on the adjustments proposed in this report.
DISCUSSION
General Fund Revenue
Some revenue sources are difficult to estimate such as utility users'taxes and permit fees.
These types of revenues are predicated on conditions outside the City's control.As an
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FY10-11 Midyear Financial Report
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example,planning and building permit revenues will fluctuate with the economy,as well as
other conditions such as the weather.Additionally,several significant franchise tax
revenues are received annually after preparation of the midyear report.For these
revenues,Staff has either reported FY1 0-11 estimated revenues as the budgeted amount
or a conservative figure based on the amount of information currently available.
Schedule Of General Fund Revenue:
Property tax $5,820,225 $6,239,417 $6,234,000 $(5,417)
Property tax in I ieu of vehicle license fees 3,433,202 3,490,200 3,511,630 21,430
Property tax in I ieu of sales tax 296,349 310,500 431,342 120,842
Property tran ster tax 238,303 180,000 205,000 25,000
Sales tax 1,157,795 1,190,400 1,513,000 322,600
Tra nsient occupancy tax 1,954,507 2,026,100 2,630,000 603,900
Fra nchise taxes 1,711,456 1,726,000 1,771,000 45,000
Utility user taxes 2,395,107 2,461,800 2,464,000 2,200
Business license tax 609,176 520,800 609,000 88,200
Golf tax 346,413 336,300 331,000 (5,300)
Planning,bUilding &safety,and other permits 1,953,825 2,014,500 1,984,000 (30,500)
Fines and forfeitures 178,949 217,000 154,000 (63,000)
Interest earnings 73,144 65,000 49,000 (16,000)
Other use of money and property (rents &leases)553,089 412,300 458,109 45,809
Charges forservices 221,208 210,300 218,325 8,025
Intergovernmental (grants &vehicle license fees)170,676 215,000 160,943 (54,057)
Other revenue 189,804 132,100 141,537 9,437
Overall,General Fund revenue is expected to exceed the current FY1 0-11 budget by about
$1.1 million,primarily attributable to sales tax and transient occupancy tax.Discussion and
analysis regarding General Fund revenues is presented below.
Staff does not recommend budget adjustments for immaterial anticipated variances.If a
particular revenue source is not discussed,there is nothing significant to report and
anticipated revenues are not expected to materially deviate from the FY10-11 budget.
Sales Tax and Property Tax in-lieu of Sales Tax
When comparing 2010 sales tax revenue with 2009,there has been a 30%increase in
revenue primarily driven by the group of restaurants at the Terranea Resort.With few
exceptions,sales tax revenue generated by other businesses remained fairly consistent
with 2009 levels.Staff recommends increasing the General Fund revenue budget by
$320,000 for Sales Tax and $120,000 for Property Tax in-lieu of Sales Tax.
Transient Occupancy Tax (TOT)
The Terranea Resort is the primary source of TOT revenue for the City.Actual FY09-10
TOT revenue was $1,954,507,and Staff conservatively estimated that this revenue would
sli~htly exceed $2 million for FY10-11.Based on information received through January
15 ,Staff expects that FY10-11 TOT revenue will likely exceed $2.6 million.Staff
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FY10-11 Midyear Financial Report
February 15,2011
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recommends increasing the General Fund revenue budget by $600,000.
Business License Tax
The business license tax was increased for 2011,based on the 0.4%increase in the
Consumer Price Index for the 12 months ending September2010.Actual business license
tax collected in FY09-10 was about $609,000,and Staff expects FY10-11 to be
comparable.The FY1 0-11 budget of $520,800 for this tax revenue was calculated during
the 2009 budget process and was not adjusted prior to the beginning of the fiscal year.
Staff recommends increasing the General Fund revenue budget by $88,000.
Fines &Forfeitures
The City's fines &forfeitures revenue is primarily derived from traffic tickets.The FY1 0-11
budget is $217,000;yet revenue is expected to only reach about $154,000.The last 5
years of actual fine revenue is listed below.Dedicated traffic enforcement was added to
the City's operating budget in FY06-07, resulting in increased fine revenue.In recent
years,there has been a declining revenue trend.Staff believes that increased traffic
enforcement has led to a change in local driving habits and waning fine revenue.
FY05-06 $170,640
FY06-07 $236,702
FY07-08 $259,639
FY08-09 $213,900
FY09-10 $178,949
FY10-11 estimated $154,000
Staff recommends an adjustment to decrease the General Fund revenue budget by
$63,000.
Intergovernmental Revenue
As discussed below (see Traffic Management Expenditures),the anticipated $60,000
Transportation Improvement Program grant for the Friendship Park safety improvements
was not approved.Staff recommends decreasing both the General Fund revenue and
expenditure budget by $60,000,accordingly.
Revenue Adjustment Summary
Staff recommends revenue adjustments totaling $1,005,000,which would increase the
General Fund revenue budget to $22.75 million (a 4.6%increase to the budget,and a
6.8% increase from FY09-10).The additional revenue is primarily driven by activity at the
T erranea Resort.
General Fund Expenditures &Transfers
Per the City's Municipal Code (section 3.32.080),budgetary compliance is determined by
program.There are 30 expenditure programs in the General Fund budget.As there are a
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FY10-11 Midyear Financial Report
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number of programs with expenditures that fluctuate with unforeseen circumstances (e.g.
weather,claims and litigation),there has been a long-standing practice to prepare
conservative expenditure budgets and minimize the burden of numerous immaterial budget
adjustments to ensure budgetary compliance.
For the last 11 fiscal years,the City has experienced total General Fund favorable
expenditure variances ranging from about $0.4 million to $1 million.When spread across
30 expenditure programs,favorable variances have averaged from about $14,000 to
$35,000 per program or about 0.2%of the total General Fund expenditure budget.
It is Finance Staff's opinion that conservative budget practices are prudent and in the best
interest of the City.Staff has analyzed FY1 0-11 General Fund expenditures to date,and
has determined that a number expenditure budgets warrant adjustment.A discussion of
proposed adjustments follows.
Salaries &Personnel
City Council Member salaries were previously increased to $400 per month;yet the
expenditure budget was not increased accordingly at that time.As a housekeeping item,
Staff recommends increasing the General Fund expenditure budget by $1 0,200 to account
for the increased salaries.
A Senior Administrative Analyst previously dedicated to the Recreation &Parks
Department is now providing services to Administration.Staff recommends moving
$48,000 of salary budget from the Recreation Administration budget program to the City
Manager's budget program.There is no net effect on General Fund expenditures as a
result of this adjustment.
A portion of a Senior Administrative Analyst's salary was budgeted in the Emergency
Preparedness program.Emergency Preparedness services have been provided by a
contractor during FY1 0-11,and the entire Senior Administrative Analyst salary is being
charged to the City Manager's budget program.Staff recommends moving $24,900 of
salary bUdget from the Emergency Preparedness budget program to the City Manager's
budget program.There is no net effect on General Fund expenditures as a result of this
adjustment.
The Senior Information Technician position has been vacant for the entire fiscal year.
Management Staff does not expect to fill this position before the start of the new fiscal
year.Therefore,Staff recommends decreasing the General Fund expenditure budget by
$119,320 for the salary and benefits savings.If additional expenditures for services
performed by the City's information technology contractor become necessary as a result of
the vacancy,Staff will make a request for a subsequent budget adjustment at fiscal year
end.Two recruitments have been conducted for this vacancy,and there have been no
viable candidates.During the 2011 budget process,Staff expects to re-evaluate the
requirements,duties and salary range for this position and make a recommendation.
The FY10-11 Recreation budget includes an appropriation of $29,900 in the REACH
program for a portion of a full-time employee's salary.As part of City Council direction,
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FY10-11 Midyear Financial Report
February 15,2011
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Staff has been downsizing the services provided to the REACH program in an attempt to
decrease the City's net contribution to that program.As such,the full-time employee has
been dedicating more hours to general Recreation programs.Staff recommends an
adjustment to move $20,000 of the salary budget from the REACH budget program to the
Recreation Facilities budget program.There is no net effect on General Fund
expenditures as a result of this adjustment.
The FY10-11 professional services budget in the Personnel program is $20,000,and is
used for pension consulting,organizational development,training and other personnel
services.Staff expects that total FY10-11 expenditures will approximate $60,000,and
recommends increasing the General Fund expenditure budget by $40,000.
City Clerk
To date,the City has paid $22,318 for election translation and signature verification related
to the November 2010 Marymount ballot item.The City has not yet received an invoice
from the County for its election service,which is currently estimated to be $78,000.The
City has not yet received any reimbursement from Marymount.At this time,the likelihood
of reimbursement is unknown and not guaranteed.Staff recommends increasing the
General Fund expenditure budget by $101,000 accordingly.
Finance
Each year the county charges the City for its services related to billing,collection and
remittance of property tax.The FY1 0-11 charge is $157,661.The 13.3%increase from
the FY09-10 charge of $139,099 is primarily due to the county unfreezing certain
employee positions and providing salary and benefit increases totaling 7%.In addition,
the property tax administration fee is based on the value of the property tax roll.As
most other agencies'property tax has decreased,the Rancho Palos Verdes subsidy of
other cities'administration charges has increased.Staff recommends a $26,000
increase to the FY1 0-11 appropriation of $132,000 for the county's services.
Traffic Management
The FY10-11 budget includes an appropriation of $78,000 to implement and manage the
Oversized Vehicle and Neighborhood Parking Permit programs.Actual costs are
significantly less than originally anticipated during the initial planning and development of
these programs.As such,Staff recommends decreasing the General Fund expenditure
budget by $45,000.
The Traffic Management budget program also included a FY10-11 appropriation for
Friendship Park safety improvements (e.g.guardrails,sign installation,and intersection
enhancements).The $60,000 project was to be fully funded by a Metro Transportation
Improvement Program grant.The grant was not approved,and Staff recommends
decreasing the General Fund expenditure budget by $60,000.Along with the
recommended revenue adjustment noted above,there is no net effect to the General Fund
as a result of this adjustment.
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FY10-11 Midyear Financial Report
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General Fund Transfers to Other Funds
Per City Council direction regarding the City's Reserve Policy on December 21,2010,Staff
recommends an adjustment to transfer an amount equal to the anticipated FY1 0-11 TOT
revenue ($2,630,000)from the General Fund Reserve to the CIP Reserve for future capital
projects.
Each year,the General Fund subsidizes the Abalone Cove Sewer District by $1 0,700.The
Engineer's Report for 201 0-11 included a recommended expenditure of about $22,000 to
purchase replacement pumps and perform a major cleaning of the sewer lines and the
sewer lift pump station.The original FY10-11 budget was not modified for this additional
recommended maintenance.Staff recommends increasing General Fund Transfers to the
Abalone Cove Sewer fund by $22,000.
Summary of Proposed General Fund Adjustments
Proposed revenue adjustments $1,005,000
Proposed expenditure/transfer out adjustments 25,120
Proposed transfer to CIP Reserve (2,630,000)
•~1~~IABtjf.1
OTHER FUNDS OF THE CITY
This section discusses other revenues and expenditures of the City.Each of the following
recommended adjustments has been incorporated in the FY1 0-11 Combined Summary of
Funds -Midyear Financial Report (see Attachment A),which includes the revised fund
balance estimates for June 30,2011.Again,if the activity of a particular fund is not
discussed,there is nothing significant to report and actual activity is expected to
approximate the FY10-11 budget.
Street Restricted Revenues
In FY09-1 0,the City began receiving Measure R revenue,a %-cent sales tax approved by
the voters in November 2008.This revenue source was budgeted in the Proposition C
fund,as the spending restrictions were similar;but Staff has learned that Measure R
activity must be accounted for in a separate fund.During the close of FY09-10,Staff
created a new Measure R fund;but the FY1 0-11 budget for Measure R activity still resides
in the Proposition C fund.Staff recommends adjustments to move the budget for
estimated FY10-11 Measure R revenue of $358,865 and the related funding transfers f6r
the arterial pavement project from the Proposition C fund to the Measure R fund.
Street Expenditures
Public Works Staff has reported that expenditures to maintain Palos Verdes Drive South in
the Portuguese Bend landslide area are expected to exceed the budget of $440,000 due to
additional land movement cause by the rain in October and December 2010.Staff
recommends an additional appropriation of $70,000 from the Street Maintenance fund.
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FY10-11 Midyear Financial Report
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Status of Capital Improvement Projects
Hawthorne Pedestrian Improvements (budget of $1 ,427,000)
The grant funding for this project has been approved by Metro (80%of project costs).The
project will be designed during the next several months,and the construction portion of the
project will likely be carried forward to FY11-12.
Palos Verdes Drive South Bikeway Safety Improvements (budget of $801 ,000)
The grant funding for this project has been approved by Metro ($630,000 of project costs),
but staff is awaiting clearance from Metro to begin the design of the project.Staff expects
that the construction portion of this project will likely be carried forward to FY11-12.
Crestridge/Crenshaw Traffic Signal (budget of $254,000)
The project is currently being designed.The construction contract was awarded by the City
Council on September 7,2010 and the work is expected to begin prior to the end of FY10-
11.
Palos Verdes Drive East Early Action Traffic Safety Improvements (budget of $280,000)
This project is 90%funded with a grant,and includes installation of guardrails,signs and
other traffic safety improvements.The grant has been approved,and the project is
expected to begin prior to the end of FY1 0-11.
Arterial Median Improvements (budget of $500,500)
This project includes the Palos Verdes Drive West Median from the Palos Verdes Estates
city limit to BerryHill.Construction is expected to begin prior to the end of FY1 0-11.
FY09-10 Arterial Pavement Project (budget of $2,543,560)
This project includes Palos Verdes Drive West/South from Hawthorne to Conqueror Drive,
and Miraleste Drive from Palos Verdes Drive East to the city limit.The project is currently
being designed,and construction is expected to begin in Mayor June 2011.
FY09-10 Residential Pavement Project (budget of $1 ,675,000)
This project includes areas around Whitley Collins,Ridgecrest Intermediate School,Island
View (south of Crest),Sean Breeze,Ocean Terrace (Pacifica &Sea Ridge),and Del Cerro
Park (north of Crest).Staff expects that construction will be completed by the end of FY1 0-
11.
FY10-11 Residential Pavement Project (budget of $1 ,520,000)
Public Works Staff expects that the design contract for this project will be awarded during
spring 2011.The construction portion of this project will likely be carried forward to FY11-
12.
Hesse Park/Ryan Park Ball Field Upgrades (budget of $646,300)
The construction contract for these upgrades was awarded by City Council on February 1,
2011.Staff expects that construction will be complete late June 2011.As reported on
February 1,2011,there are project savings and Staff recommends decreasing the CIP
appropriation by $100,000 for this project.
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FY10-11 Midyear Financial Report
February 15,2011
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Lower Hesse/Grandview Park Improvements (budget of $2,004,095)
On November 16'and December 7,2010 the City Council directed Staff to begin the
environmental review process for these projects.Staff has begun the preliminary
environmental process,and anticipates soliciting bids for a contractor to complete the
process by summer 2011.Any improvements would not be constructed until at least FY11-
12;therefore Staff anticipates that most all of this appropriation will need to be carried
forward to FY11-12.
Point Vicente Interpretive Center Exhibits Phase II (budget of $600,000)
This project was to be funded with $300,000 donations and a $300,000 matching grant
from the Annenberg foundation.Staff anticipates that there will be no expenditures for this
project during FY1 0-11,and recommends eliminating the CIP appropriation for this project.
Grant Funded Projects
Several street related capital improvement projects to be partially funded with state grants
were carried forward from FY09-10 to FY10-11.Staff requests corresponding revenue
budget adjustments for the following:
~Metro Transportation Improvement Program (TIP)grant of $630,000 for the Palos
Verdes Drive South Bikeway Safety project;
~Metro TIP grant of $228,320 for the Pedestrian improvements on Hawthorne;
~Highway Safety Improvements Program (HSIP)grant of $212,400 for the
Crestridge/Crenshaw Traffic Signal project;and
~HSIP grant of $252,000 for the Palos Verdes Drive East Early Action Safety
Improvements (guardrails)project.
Funding Transfers for Projects Continued From FY09-10
With City Council approval,a number of FY09-1 0 projects were carried forward to FY10-
11.Many of these projects are to be funded with restricted monies transferred from other
funds.Staff recommends the following adjustments to the FY10-11 transfer budget to
reflect the sources associated with each project.
~Increase Street Maintenance fund transfers to CIP by $57,080 for a matching
contribution to the Pedestrian improvements on Hawthorne.
~Increase Beautification fund transfers to CIP by $250,500 for median improvements
in the City's right-of-way.
~Increase Waste Reduction fund transfers to CIP by $41,000 for the portion of the
arterial pavement project funded with a Rubberized Asphalt grant.
~Increase Proposition C fund transfers to CIP by $37,920 for partial funding of the
arterial pavement project,and $18,000 for the Proposition C money gifted from the
City of Rolling Hills also to be used for the arterial pavement project.
~Increase Measure R fund transfers to CIP by $632,080 for partial funding of the
arterial pavement project,and $6,000 for the Measure R money gifted from the City
of Rolling Hills also to be used for the arterial pavement project.
~Increase Environmental Excise Tax (EET)fund transfers to CIP by $46,300 for the
Hesse Park/Ryan Park ball field improvements.
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FY10-11 Midyear Financial Report
February 15,2011
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~Increase Bikeways fund transfers to CIP by $9,750 for the Transportation
Development Act (TDA)Article 3 money gifted from the City of Rolling Hills to be
used for the arterial pavement project.
~Increase only the transfer-in to the Community Development Block Grant fund for
partial funding of the Community Development Building Restroom project.The
General Fund was already adjusted for this $44,000 transfer at the time that FY09-
10 continuing appropriations were approved by City Council.
Other Adjustments
Expenditures
As discussed above,the Engineer's Report for the Abalone Cove Sewer System
recommended additional maintenance of about $22,000 to purchase replacement pumps
and perform a major cleaning ofthe sewer lines.In addition to the recommended General
Fund transfer,Staff recommends increasing the Abalone Cove Sewer District appropriation
by $22,000.
Dr.Allen and Charlotte Ginsburg authorized a distribution of $20,000 to the Palos Verdes
Peninsula Land Conservancy from their donation previously made to the City.Staff
recommends an adjustment to increase the Ginsburg fund expenditures for the distribution.
The City's Affordable Housing fund purchased a condominium in FY08-09.Staff expects
that the condominium will be sold for affordable housing during 2011.In the meantime,the
City must continue to pay homeowners'association dues and electricity.Staff requests a
budget adjustment of $5,000 for these expenditures.
RESERVE POLICIES
The City Council has adopted reserve policies for a number of funds.A summary of
reserve levels follows.
50%of budgeted expenditures 8,964,743
One year of Portuguese Bend
Street Maintenance road main te nance 520,300 602,834 82,534
Habitat Restoration Emergency projects 50,000 50,000
Habitat Restoration Future maintenance 64,443 209,692 145,249
Subregion One Developer endowment 750,000 758,720 8,720
Capital Improvement
Projects Emergency or Future Projects 3,000,000 5,164,012 2,164,012
Capital Improvement FE MA reserve for FY04 -05
Projects win ter storms 274,430 274,430
Equipment Estimated replacement cost of
Rep lacement assets held 1,661,947 1,726,647 64,700
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FY10-11 Midyear Financial Report
February 15,2011
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CIP Reserve Reconciliation:
Actual FY09-10 TOT Revenue 1,954,507
Anticipated FY1 0-11 TOT Revenue 2,630,000
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Contribution to Upper Filiorum Open Space
Purchase (authorized by City Council on
September 15,2009)(419,087)
FY10-11 Appropriation for Lower
Hesse/Grandview Park Improvements
Actual Excess CIP Reserve (as shown above)2,164,012
~~~~~AJBJ1jj
San Ramon Canyon Stabilization Project -Possible PDVE Roadway Stabilization
Project
During the introduction of the Project Study Report (PSR)for the San Ramon Canyon
Stabilization Project at the City Council meeting on January 18,2011,Staff advised the
Council that it will monitor the switchback section of the roadway along Palos Verdes Drive
East (PVDE).The City Council approved Staff's recommendation that Harris design a
PDVE roadway stabilization project to be "shelf ready".A shelf ready design would enable
the completion of a stabilization project that would shore up a certain area of the PVDE
switchback using caissons in the event the erosion of the San Ramon Canyon accelerates.
The CIP Reserve could be used as a funding source for PDVE Roadway Stabilization
project if it is deemed necessary prior to completion of the ultimate solution,the San
Ramon Canyon Stabilization Project.The San Ramon project would be expected to
mitigate the canyon erosion,25th Street closures during winter storms,and avoid property
damage below 25th Street.
Reimbursement of Funds Paid By FEMA Resulting From 2004-05 Winter Storms
The City of Rancho Palos Verdes is defending its taxpayers from having to return a federal
grant of more than $900,000 for storm drain repairs made in 2004-05,based upon audit
recommendations that were issued recently by the Department of Homeland Security's
Office of the Inspector General (OIG).The Federal Emergency Management Agency
(FEMA)and the California Emergency Management Agency (CalEMA)have determined
that the City completed the projects in full compliance with all applicable federal and state
laws.City Staff strongly disagrees with the audit's conclusions and believes that OIG
auditors may even have violated professional audit standards in the conduct of their work.
The City's challenge to the audit is expected to take at least two years to be concluded.
The CIP Reserve could be used as a funding source in the event repayment is necessary,
and the amount exceeds the separate $274,430 FEMA Reserve.
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FY10-11 Midyear Financial Report
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FISCAL IMPACT
Except as discussed above,all other estimated revenues and expenditures are expected to
approximate the bUdget in all funds of the City for FY1 0-11.The estimated fund balances
presented in the FY10-11 Combined Summary of Funds -Midyear Financial Report
(attachment A)includes the effects of the budget adjustments recommended within this
report.
Attachments:
A -FY10-11 Combined Summary of Funds -Midyear Financial Report
B -FY10-11 Statement of Estimated General Fund Reserves
7-12
Restricted by Council Action
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RPV TV 1,152 1,010 85,000 86,432 730
~-7,081,597 2,253,400 7,819,152 11,715,707 --5,438,442-
UTILITY UNDERGROUNDING 275,159 1,390 90,000 186,549
ROADWAY BEAUTIFICATION 102,068 520 102,588
EQUIP REPLACEMENT 2,818,447 68,500 1,160,300 1,726,647
BLDG REPLACE/IMPROVE 1,042,318 4,200 401,500 645,018
Restricted by Law or External Agencies
STREET MAINTENANCE
1972 ACT
El PRADO LIGHTING
CDBG
1911 ACT
WASTE REDUCTION
AIR QUALITY MANAGEMENT
PROPOSITION C
PROPOSITION A
PUBLIC SAFETY GRANTS
MEASURE R
HABITAT RESTORATION
SUBREGION 1 MAl NT
MEASURE A MAINT
AB COVE SEWER DISTRICT
GINSBURG CULTURAL ARTS BLDG
DONOR RESTRICTED CONTRIB
QUIMBY
AFFORD HOUSING IN-LIEU
EET
MEASURE A CAPITAL
BIKEWAYS
WATER QUALITY/FLOOD PROTECT
776,018
50,745
12,850
1,639,118
230,495
51,409
1,695,558
100,264
34,920
273,216
275,193
773,920
26,722
58,343
202,156
403,838
29,205
7,025
684,251
7,440
2,824,621
1,138,970
258,927
1,920
244,994
500,600
203,120
50,070
503,005
642,214
100,000
364,865
1,010
3,800
151,170
46,840
1,040
10
130
40
38,800
26,973
1,253,689
973,600
44,000
60,000
109,900
70,000
32,700
2,228,674
70,300
1,000
288,994
506,900
186,439
50,000
706,000
126,411
89,000
85,206
20,000
5,000
554,675
3,514,618
57,080
204,000
104,100
53,000
556,220
100,000
638,080
151,000
86,300
26,973
602,834
35,372
13,770
1,528,718
194,176
51,479
1,642,343
96,478
34,92Q
1
259,692
758,720
26,892
52,677
183,196
403,848
29,335
2,065
82,076
7,440
563,692
7-13
FY10-11 Statement of Estimated General Fund Reserves
Adjustments:
Attachment B
FAA Consultant for Proposed Class C Airspace
Change
FY09-10 Year-End Adjustments
CDBG Reallocation
Proposition A Exchange with the City of Rolling
Hills
March Special Election Cost
FY09-10 Final Results
Midyear Financial Report
8/17/2010
9/712010
9/7/2010
9/21/2010
10/5/2010
211/2011
2115/2011
61,610
418,087
1,005,000
(15,000)
(48,750)
80,000
47,120
60,000
(2,652,000)
Net Transfers include both operating transfers from and to the General fund.Originally budgeted Net Transfers are adjusted when staff becomes aware that
an additional 0 eratin transfer is needed to satis an unantici ated shortfall within another fund;and that shortfall must be funded with General fund monies.
Ending Reserves are the estimated 6/30/10 General fund reserves at the time of budget adoption.Adjusted Ending Reserves is a calculation based on
subse uent ad'ustments to Be innin Reserves Revenues Ex enditures and Net Transfers.
7-14
RESOLUTION NO.2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES,AMENDING RESOLUTION 2010-55,THE BUDGET APPROPRIATION
FOR FY10-11,TO ADJUST THE BUDGET IN VARIOUS FUNDS OF THE CITY
WHEREAS,on June 15,2010,the City Council of the City of Rancho Palos Verdes
adopted Resolution 2010-55,approving a spending plan and authorizing a budget
appropriation for FY1 0-11:and
WHEREAS,certain FY10-11 revenues,expenditures and operating transfers,as
described in the Midyear Financial Analysis and identified below,are expected to
deviate from the amount budgeted;and
WHEREAS,the City Council desires that the FY10-11 budget be adjusted.
BE IT,THEREFORE,RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
The following adjustments are made to the FY10-11 budget:
General Fund Revenue Adjustments:
Taxes #101-6000-313-1 0-00
Taxes #101-6000-312-20-00
Taxes #101-6000-314-1 0-00
Taxes #101-2020-316-10-10
Fines &Forfeitures #101-1021-351-10-00
Intergovernmental #101-3006-334-10-00
Sales Tax $320,000
Prop Tax in-lieu Sales Tax $120,000
Transient Occupancy Tax $600,000
Business License Tax $88,000
Miscellaneous Court Fines $(63,000)
Trans Impr Prog Grant $(60,000)
General Fund Expenditure Adjustments:
City Council #101-1001-411-12-00
City Manager #101-1002-411-11-00
Recreation Admin #101-5010-411-11-00
City Manager #101-1002-411-11-00
Emergency Prep #101-1026-421-11-00
Info Technology #101-2030-411-11-00
Info Technology #101-2030-411-29-00
Recreation Facilities#101-5030-451-11-00
REACH #101-5070-451-11-00
Personnel #101-1011-411-32-00
City Clerk #101-1004-411-69-00
Finance #101-2020-411-32-00
Traffic Management#101-3006-431-32-00
Traffic Management#101-3006-431-73-00
Part-time Salaries
Full-time Salaries
Full-time Salaries
Full-time Salaries
Full-time Salaries
Full-time Salaries
Employee Benefits Chgs
Full-time Salaries
Full-time Salaries
Professional Services
Misc Expenses
Professional Services
Professional Services
Safety Improvements
$10,200
$48,000
$(48,000)
$24,900
$(24,900)
$(89,200)
$(30,120)
$20,000
$(20,000)
$40,000
$101,000
$26,000
$(45,000)
$(60,000)
General Fund Transfer Adjustments:
Transfers Out #101-6000-491-91-00
Transfers Out #101-6000-491-91-00
To CIP Reserve $2,630,000
To Abalone Cove Sewer $22,000
7-15
Street Maintenance Fund Adjustments:
Port Bend Rd Maint #202-3005-431-43-00
Transfers Out #202-3003-491-91-00
Maintenance Services $70,000
to CIP for Pedestrian Impr $57,080
Beautification Fund Adjustment:
Transfers Out #212-3012-491-91-00 To CIP for Medians $250,500
Measure R Fund Adjustments:
Intergovernmental #220-3020-338-40-00
Transfers Out #220-3020-491-91-00
Transfers Out #220-3020-491-91-00
Waste Reduction Fund Adjustment:
Transfers Out #213-3013-491-91-00
Proposition C Fund Adjustments:
Intergovernmental #215-3015-338-40-00
Transfers Out #215-3015-491-91-00
Transfers Out #215-3015-491-91-00
Special Tax Revenue $358,865
To CIP for Arterial Project $632,080
To CIP for Arterial Project $6,000
To CIP for Arterial Project $41,000
Special Tax Revenue $(358,865)
To CIP for Arterial Project $37,920
To CIP for Arterial Project $18,000
Abalone Cove Sewer District Fund Adjustments:
Transfers In #225-3025-391-10-00 From General Fund
Abalone Cove #225-3025-431-43-00 Maintenance Services
Ginsburg Cultural Arts Building Fund Adjustment:
Misc Expenditure #227-3027-431-69-00 PVPLC Distribution
Community Development Block Grant Fund Adjustment:
Transfers In #310-3093-391-10-00 From General Fund
$22,000
$22,000
$20,000
$44,000
Capital Improvement Projects (CIP)Fund Adjustments:
Street Improve #330-3031-334-10-00 State Grants $630,000
Street Improve #330-3031-334-10-00 State Grants $228,320
Street Improve #330-3031-334-10-00 State Grants $212,400
Street Improve #330-3031-334-10-00 State Grants $252,000
Transfer In #330-3031-391-10-00 From Various $1,098,630
Transfer In #330-3031-391-10-00 From General Fund $2,630,000
Park Improvements #330-3033-461-73-00 Ball Field Improvements $(100,000)
Park Improvements #330-3033-461-73-00 PVIC Exhibits Phase II $(600,000)
Affordable Housing In-Lieu Fund Adjustment:
Affordable Housing #337-4037-441-32-00 Professional Services
Environmental Excise Tax (EET)Fund Adjustment:
Transfers Out #338-3038-491-91-00 To CIP for Ball Fields
Bikeways Fund Adjustment:
$5,000
$46,300
7-16
Transfers Out #340-3040-491-91-00 To CIP for Arterial Project $9,750
PASSED,APPROVED,AND ADOPTED THE 15th DAY OF FEBRUARY 2011.
MAYOR
ATTEST:
CITY CLERK
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I,CARLA MORREALE,City Clerk of The City of Rancho Palos Verdes,hereby certify
that the above Resolution No.2011-was duly and regularly passed and adopted by
the said City Council at regular meeting thereof held on February 15,2011.
CITY CLERK
CITY OF RANCHO PALOS VERDES
7-17