CC SR 20180619 01 - Budget Adoption DRAFT
PUBLIC HEARING (continued)
Date: June 19, 2018
Subject: Consideration and possible action to conduct a public hearing to adopt the FY18-19
Budget
Subject Property/Location: Citywide
1. Report of Notice Given: City Clerk
2. Declare Public Hearing Open: Mayor Brooks
3. Request for Staff Report: Mayor Brooks
4. Staff Report & Recommendation: Trang Nguyen, Deputy Director of Finance
5. Council Questions of Staff (factual and without bias):
6. Testimony from members of the public:
The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking
for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who
intend to speak.
7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Brooks
8. Council Deliberation:
The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer
questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter.
9. Council Action:
The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional
testimony; continue the matter to a later date for a decision.
Cover page
RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/19/2018
AGENDA REPORT AGENDA HEADING: Public Hearing
AGENDA DESCRIPTION:
Consideration and possible action to conduct a public hearing to adopt the FY18-19
Budget.
RECOMMENDED COUNCIL ACTION:
(1) Continue the public hearing opened on June 5, 2018; and,
(2) Adopt Resolution No. 2018-___, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET
APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL
IMPROVEMENT BUDGET FOR FISCAL YEAR 2018-19.
FISCAL IMPACT: The FY18-19 Budget includes total revenues of $43,763,600 and
total expenditures of $47,874,800, excluding Improvement Authorities. Total General
Fund revenues are $31,143,800 and expenditures are $31,989,600. The variance
between revenues and expenditures includes transfers, and is covered by existing fund
balances.
ORIGINATED BY: Trang Nguyen, Deputy Director of Finance
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. June 5, 2018, City Council Staff Report (page A-1)
B. Resolution No. 2018-__ (page B-1)
BACKGROUND AND DISCUSSION:
The FY18-19 Budget includes City Council direction provided on April 12, 2018, April
28, 2018, May 15, 2018, and June 5, 2018. The draft budget book is available City’s
website for review at http://www.rpvca.gov/DocumentCenter/View/11979/FY18-19-Draft-
Budget. Notice of this public hearing was published in the Palos Verdes Peninsula
News on May 17, 2018 and May 24, 2018.
The Preliminary Budget is detailed in the June 6, 2018, Staff report (Attachment A) and,
at that meeting, the City Council did not request any further modifications or changes.
Since there are no other changes to the FY18-19 Budget for the General Fund and/or
Special Revenue Fund revenues and expenditures, Staff recommends that the City
Council adopt the draft resolution (Attachment B) approving the FY18-19 budget.
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RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/05/2018
AGENDA REPORT AGENDA HEADING: Public Hearing
AGENDA DESCRIPTION:
Consideration and possible action regarding the Fiscal Year 18-19 Draft Budget and
Capital Improvement Program including discussion and possible direction regarding all
City revenues and expenditures.
RECOMMENDED COUNCIL ACTION:
(1) Receive Staff presentation of FY17-18 updated General Fund year-end
estimates and fund balance;
(2) Receive Staff presentation of FY18-19 Preliminary Budget and Capital
Improvement Program;
(3) Determine that the utility users’ tax (UUT) rate of 3% continues to be a necessary
revenue source for the City’s operating and capital improvements, and that the
current rate of 3% should be maintained; and,
(4) Continue public hearing to June 19, 2018.
FISCAL IMPACT: The Preliminary FY18-19 Budget includes total revenues of
$43,763,600 and total expenditures of $47,874,800, excluding Improvement Authority.
Total General Fund revenues of $31,143,800 and expenditures of $31,989,600. The
variance between revenues and expenditures includes transfers and is covered by
existing fund balance.
ORIGINATED BY: Trang Nguyen, Deputy Director of Finance
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. FY18-19 Preliminary Budget Summary (page A-1)
B. FY18-19 Preliminary CIP Budget and 5-year CIP Plan (page B-1)
BACKGROUND AND DISCUSSION:
FY17-18 General Fund Year-end Estimates
General Fund Revenues
At the end of third quarter on March 31st, General Fund revenues came in slightly higher
than what was estimated at mid-year by an increase of $90,000 or 0.3%.
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The table below summarized the changes from year-end estimates reported at mid-year
and third quarter.
Table 1 – General Fund Year-end Estimates at Mid-year and Third Quarter
General Fund Expenditures
General Fund operating expenditures, excluding transfers out, are projected to end
FY17-18 at approximately $27.1 million. This is a reduction of 0.5% or ($135,900) from
mid-year, not including transfers out. The reduction in the year end estimate for legal
expenses in the amount of ($296,000) is based on the recent changes in the City
Attorney resources and the markdown/credit that the City received on certain billed
services. The other minor changes in the expenditure estimates net a total reduction of
$135,874 as shown below.
Table 2 – General Fund Year-end Estimates at Mid-year and Third Quarter
PROPERTY TAX 12,746,100$ 12,779,760$ 12,779,760$ -$ 0.00%
TOT 6,040,000 5,816,000 5,816,000 -$ 0.00%
SALES TAX 2,580,200 2,560,700 2,560,700 -$ 0.00%
LICENSE & PERMITS 2,321,100 2,265,952 2,265,952 -$ 0.00%
FRANCHISE TAX 2,112,800 2,024,900 2,024,900 -$ 0.00%
UUT 1,871,100 1,875,244 1,875,244 -$ 0.00%
OTHER/ MISC 1,351,200 1,573,110 1,663,110 90,000$ 5.72%
OTHER TAXES 1,184,800 1,292,476 1,292,476 -$ 0.00%
Subtotal 30,207,300 30,188,142 30,278,142 90,000 0.30%
TRANSFER IN 230,000 230,000 230,000 -$ 0.00%
Total Revenues 30,437,300$ 30,418,142$ 30,508,142$ 90,000$ 0.30%
%
FY 17-18
Revised
Budget
FY 17-18
YE Estimates @
3rd Qtr.
FY 17-18
YE Estimates @
Mid-year
Variance from
Mid-year
Estimates
SALARIES 7,817,500 7,016,400 7,032,100 15,700 0.22%
BENEFITS 2,599,288 2,558,974 2,608,000 49,026 1.92%
LEGAL 925,000 1,455,000 1,159,000 (296,000) -20.34%
SHERIFF 6,135,200 6,135,200 6,135,200 0 0.00%
SHERIFF-PRESERVE 567,000 567,000 567,000 0 0.00%
SAFETY ADDITIONAL SERV.126,000 126,000 126,000 0 0.00%
PROF/ TECH 4,915,102 4,778,674 4,834,574 55,900 1.17%
REPAIR/ MAINT 1,557,700 1,909,200 1,909,200 0 0.00%
SUPPLIES 2,230,124 2,230,207 2,230,207 0 0.00%
OTHER/ MISC 569,900 511,925 551,425 39,500 7.72%
Operating Expenditures 27,442,813 27,288,580 27,152,706 (135,874) -0.50%
TRANSFER OUT 4,813,500 4,813,500 4,813,500 0 0%
Total General Fund
Expenditures $32,256,313 $32,102,080 $31,966,206 ($135,874) -0.42%
FY 17-18
Revised
Budget
FY 17-18
YE Estimates @
Mid-year
FY 17-18
YE Estimates @
3rd Qtr.
Variance from
Mid-year
Estimates %Expenditure Categories
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Table 3 – Fund Balance Update for General Fund
FY18-19 Budget
The City started the budget process with the first Budget Workshop held on April 12,
2018. During this session, Staff presented year-end estimates for FY17-18 along with
assumptions and estimates that would be used to develop the FY18-19 General Fund
Operating Budget. An additional workshop was held on April 28, 2018, to review and
discuss the Capital Improvement Project Budget and 5-year Capital Improvement Plan.
On May 15, 2018, Staff presented an updated FY18-19 Preliminary Budget based on
the discussion and direction provided by the City Council at the two budget workshops.
Additionally, Staff presented two new requests seeking City Council direction: $50,000
in the General Fund and $249,000 in the Capital Improvement Program.
The City Council directed Staff to increase the preliminary General Fund budget to
incorporate an additional amount of $50,000 to contract for a Cost Allocation and Fee
Study. This study will provide the detailed information necessary to update the City’s
fee schedule. The last update to the fee schedule was in 2009.
The City Council also approved additional funding of $249,000 in the Capital Program
for signage in the Palos Verdes Nature Preserve. The signage project was originally
presented to the City Council in June 2016 and, based on direction from the City
Council, the City pursued grant funding to cover the costs of the identified signage plan.
Unfortunately, the City was not awarded the grant funding and this project was brought
back to the current City Council for consideration. The funding requested covers the
purchase of the signs while the Palos Verdes Peninsula Land Conservancy is covering
the costs to install the signage. Staff will bring back additional project details with the
contract for City Council approval at a later date.
Year-end
Estimates
Beginning Fund Balance 16,825,403$
Add: Revenues 30,278,142
Add: Transfers In 230,000
Subtotal 47,333,545
Less: Expenditures (27,152,750)
Less: Transfers Out to CIP (4,526,000)
Less: Transfers Out (287,500)
Subtotal (31,966,250)
Ending Fund Balance 15,367,295
Reserve Policy (50% of
budgeted expenditures)13,576,375
Excess Unrestricted Reserve 1,790,920$
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These changes are included in the Preliminary Budget.
FY18-19 General Fund Budget Assumptions
General Fund Revenues
For FY18-19, Staff is projecting an overall increase of $644,900 or 2.1% in General
Fund operating revenues (net of transfers) over the FY17-18 updated year-end
estimates. While major revenues are stable, the overall increase of 2.1% falls short of
the projected 3.2% increase in expenditures (net of transfers) resulting in an
unfavorable variance of slightly more than $840,000. Fortunately, the City has excess
reserves carried over from prior years to cover the variance.
Listed below is a summary of the major revenue assumptions as presented at the
Budget Workshop on April 12, 2018, in comparison to the updated FY17-18 year-end
estimates:
1. General Tax Revenue is estimated to increase by approximately $713,300 or
2.8%:
a. Property Tax is projected to increase by 5.2% or $659,200 over FY17-18
year-end estimates.
b. Sales Tax is expected to remain relatively flat in FY18-19.
c. Transient Occupancy Tax (TOT) is projected to increase by 0.1% or $7,100
over the year-end estimates.
d. Utility User Tax is projected to increase by 2.5% or $46,400 over the year-end
estimates.
2. Other Taxes (including Business License Tax and Golf Tax) are projected to
have a slight decrease by 0.2% or $2,100 over the year-end estimates.
3. Other Revenues, overall, are expected to decrease by 1.7% or ($66,300) over
year-end estimates:
a. Licenses and Permits, Charges for Services, and Fines are projected to
increase by 1 % or $24,300 over year-end estimates.
b. Miscellaneous Revenues is projected to decrease by 5.4% or ($90,600) over
year-end estimates.
Below is the summary of the FY18-19 General Fund Preliminary Revenues compared to
the FY17-18 Revised Budget and FY17-18 year-end estimates.
A-4
Table 4 – General Fund FY 18-19 Preliminary Revenue Budget
Chart 1 – General Fund FY 18-19 Preliminary Revenue Budget
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General Fund Expenditures
Overall expenditures are estimated to increase by $272,200 or 1% to the year-end
estimates or decrease by ($17,900) compared to revised budget, net of transfers out.
Listed below is a summary of the expenditure assumptions
Personnel Costs
1. Salaries – a budgeted increase of 12.3% or $968,300 over year-end estimates
are primarily due to:
a. Full-time positions in various departments that were budgeted for the full
annual cost in FY7-18 that went unfilled resulting in savings of approximately
$737,300 which accounts for a majority of the increase to the year-end
estimate
b. Per current labor contract, a scheduled cost-of-living allowance (COLA)
increase of 2.5% or $126,000 and an average merit increase of 2.5% or
$122,000 for RPVEA Association and Management/Confidential
c. Position reclassification — Public Works Department
i. Reclass the Maintenance Supervisor position to a Permit Technician
position, savings of $10,000
ii. Reclass the Administrative Assistant position to a Staff Assistant
position, savings of $7,000
2. Benefits – a budgeted increase of 11.9% or $310,100 due to:
a. Full-time positions in various departments that were budgeted for the full
annual cost in FY17-18 that went unfilled resulting in savings of
approximately $79,300
b. CalPERS Normal Costs - increase of $28,200
i. Tier 1 – 10.609%, an increase of 0.5%
ii. Tier 2 – 7.634%, an increase of 0.4%
iii. Tier 3 – 6.842%, an increase of 0.3%
c. CalPERS Unfunded Liabilities – increase of $164,600
i. Tier 1 – 25.219%, an increase of 12.6%
ii. Tier 2 – 0.044%, an increase of 0.02%
iii. Tier 3 – 0.056%, an increase of 0.3%
d. Health, dental and vision benefits – an increase of 5% or $38,000
Non-Personnel Costs
3. Public Safety – increase of 3% or $200,200 due to:
a. Sheriff’s Contract – increase of $183,000
i. 2.57% increase in the cost of a Deputy Sheriff Service Unit
ii. 3.67% cost for Bonus I Deputy units from the FY17-18 rates.
iii. 10.5% contribution to the Liability Trust Fund that is administered
by the County of Los Angeles
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b. Preserve-Sheriff – increase of $17,200
i. 2.57% increase in the cost of a Deputy Sheriff Service Unit
ii. 10.5% contribution to the Liability Trust Fund that is administered
by the County of Los Angeles
4. Supplies – decreased by 43% or ($962,000) due to one-time costs for automated
license plate recognition (ALPR) cameras, homeowners’ association (HOA)
grants and vehicles/equipment purchases budgeted in FY17-18.
5. General Liability Insurance – originally scheduled to increase by 25% or
$120,400 due to three major claims from FY15-16. However, at the City Council
Meeting on May 15, 2018, Staff provided an update on General Liability based on
actual invoice received for FY18-19 and the increase dropped from 25% to 21%
or $91,100, a decrease of 4% or ($19,300) from the original estimate presented
at the Budget Workshop.
6. Parks Improvement/Maintenance
a. Playground equipment repair/maintenance increase of $65,700
b. Ball fields maintenance increase of $60,000
c. Eastview Dog Park maintenance increase of $20,000
7. TOT Transfer Out to CIP – during the FY17-18 Budget Adoption, the City Council
directed Staff to reduce the TOT transfer to Capital Improvement Plan (CIP) by
the annual increase in Public Safety contract. Based on this direction the net
transfer to CIP is reduced by Public Safety increase over the past 2 fiscal years.
Projected TOT Revenue from Terranea $5,613,000
Less: FY17-18 Public Safety increase ($893,000)
Less: FY18-19 Public Safety increase ($200,200)
Projected TOT transfer to CIP $4,519,800
8. Professional/Technical Services –the City Council approved an additional
$50,000 for a Cost Allocation and Fee Study to update the City’s Fee Schedule in
FY18-19.
Below is the summary of the FY18-19 General Fund Preliminary Expenditures
compared to the FY 17-18 Revised Budget and the FY17-18 year-end estimates.
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Table 5 – General Fund FY 18-19 Preliminary Expenditure Budget by Category
It should be noted that the expenditures, net of transfers, do not show an increase to the
revised FY17-18 budget.
Chart 2 – General Fund FY 18-19 Preliminary Expenditure Budget by Category
FY 17-18 FY 17-18 FY 18-19
Revised Estimates Preliminary
SALARIES 7,817,500 7,032,100 8,000,400
BENEFITS 2,599,288 2,608,000 2,918,100
LEGAL 925,000 1,159,000 925,000
SHERIFF 6,135,200 6,135,200 6,318,500
SHERIFF-PRESERVE 567,000 567,000 584,200
SAFETY ADDITIONAL SERV.126,000 126,000 126,000
PROF/ TECH 4,915,102 4,834,574 4,887,900
REPAIR/ MAINT 1,557,700 1,909,200 1,818,400
SUPPLIES 2,230,124 2,230,207 1,268,200
OTHER/ MISC 569,900 551,425 578,200
Operating Expenditures 27,442,813 27,152,706 27,424,900
TRANSFER OUT 4,813,500 4,813,500 4,564,700
Total General Fund
Expenditures $32,256,313 $31,966,206 $31,989,600
Expenditure Categories
A-8
Table 7 – General Fund FY18-19 Preliminary Expenditure Budget by Department,
Excluding Transfers Out
Chart 3 – General Fund FY18-19 Preliminary Expenditure Budget by Department
CITY ADMIN.3,636,300$
COMMUNITY DEV. 3,736,300
CITY COUNCIL 154,600
FINANCE 1,606,100
LEGAL SERVICES 925,000
NON-DEPT 1,323,200
PUBLIC SAFETY 7,187,100
PUBLIC WORKS 6,001,200
REC & PARKS 2,855,100
27,424,900$
SUMMARY OF EXPENDITURES BY DEPARTMENT
A-9
The General Fund updated estimated ending fund balance at June 30, 2019, is $14.5
million and, after applying the City Council’s reserve policy, the excess unrestricted
surplus is approximately $800,000, an increase of almost $200,000 from what was
reported on May 15, 2018. The increase is due to the estimated beginning fund
balance increasing by almost $200,000.
Table 6 – Fund Balance Update for General Fund
Below is the summary of the FY18-19 Preliminary Budget for all funds.
Beginning Fund Balance @ 7/1/2018 15,367,295$
Add: Proposed Revenues 30,923,100
Add: Proposed Transfers In 220,000
Subtotal 46,510,395
Less: Proposed Expenditures (27,424,900)
Less: Proposed Transfers to CIP (4,519,700)
Less: Proposed Misc.Transfers (45,000)
Subtotal (31,989,600)
Ending Fund Balance @ 6/30/2019 14,520,795
Reserve Policy (50% of budgeted expenditures)13,712,450
Excess Unrestricted Reserve 808,345$
FY 18-19 Estimated Fund Balance
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Table 8 – FY18-19 Preliminary Budget Summary for All Funds
CITY OF RANCHO PALOS VERDES FY 18-19 FUND SUMMARY
Estimated Fund Estimated Fund
Fund Balance 6/30/2018 Revenues Transfers In Expenditures Transfers Out Balance 6/30/2019
General Fund Balance 15,367,295 14,520,795
Restricted Amount (Policy Reserve)(13,576,375) (13,712,450)
GENERAL FUND Unrestricted Surplus 1,790,920 30,923,100 220,000 (27,424,900) (4,564,700) 808,345
Restricted by Council Action
BEAUTIFICATION FUND 9,385 5,000 - - - 14,385
CIP 21,596,019 285,500 4,835,700 (7,105,100) - 19,612,119
EQUIPMENT REPLACEMENT 3,222,349 327,200 - (1,775,200) - 1,774,349
BUILDING REPLACEMENT - - - - - -
EMPLOYEE BENEFITS - - - - - -
Subtotal Restricted by Council Action 24,827,753 617,700 4,835,700 (8,880,300) - 21,400,853
Restricted by Law or External Agencies
GAS TAX 1,278,209 1,798,600 - (1,618,800) - 1,458,009
1972 ACT - 300 - - - 300
EL PRADO LIGHTING 29,360 2,500 - (800) - 31,060
CDBG (35,049) 139,300 - - - 104,251
1911 ACT 2,624,502 628,000 - (617,000) - 2,635,502
WASTE REDUCTION 440,373 211,700 - (317,100) - 334,973
AIR QUALITY MANAGEMENT 85,215 50,900 - (50,000) - 86,115
PROPOSITION C 479,866 702,400 - (1,100,000) - 82,266
PROPOSITION A 2,723,013 849,400 - (1,148,300) - 2,424,113
PUBLIC SAFETY GRANTS 72,231 131,000 - - (130,000) 73,231
MEASURE R 2,019,625 545,400 - (100,000) - 2,465,025
MEASURE M 301,900 592,100 - (536,000) - 358,000
FEDERAL GRANTS 579,880 453,800 - - (316,000) 717,680
STATE GRANTS - 600,000 - - - 600,000
HABITAT RESTORATION 1,084,090 12,400 - (179,500) - 916,990
SUBREGION 1 MAINTENANCE 791,277 8,100 - (46,800) - 752,577
MEASURE A 115,301 91,100 - - (90,000) 116,401
ABALONE COVE SEWER DISTRICT 322,642 57,000 - (429,600) - (49,958)
GINSBURG CULTURAL ARTS BUILDING 87,264 900 - - - 88,164
DONOR RESTRICTED CONTRIBUTIONS 809,978 17,000 - (25,000) - 801,978
QUIMBY 882,894 73,000 - (300,000) - 655,894
LOW-MOD INCOME HOUSING 169,637 44,700 - - - 214,337
AFFORDABLE HOUSING IN LIEU 599,801 6,200 - - - 606,001
ENVIRONMENTAL EXCISE TAX 419,224 116,800 - - - 536,024
BIKEWAYS - 34,500 - - - 34,500
WATER QUALITY/FLOOD PROTECTION - - - - - 0
Subtotal Restricted by Law or External Agencies 15,881,233 7,167,100 - (6,468,900) (536,000) 16,043,433
TOTAL GOVERNMENTAL FUNDS 56,076,281 38,707,900 5,055,700 (42,774,100) (5,100,700) 51,965,081
Improvement Authorities
IMPROV AUTH - PORTUGUESE BEND 105,412 1,100 20,000 (114,900) - 11,612
IMPROV AUTH - ABALONE COVE 1,051,709 3,400 25,000 (74,600) - 1,005,509
Subtotal for Improvement Authorities 1,157,121 4,500 45,000 (189,500) - 1,017,121
GRAND TOTAL OF ALL FUNDS 57,233,402 38,712,400 5,100,700 (42,963,600) (5,100,700) 52,982,202
FY 18-19 Estimated Resources FY 18-19 Estimated Appropriations
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Capital Improvement Project Fund
During the April 26, 2018, Budget Workshop presentation, the City Council was
provided with an update of all projects and estimated fund balances. Staff presented
four (4) separate categories of projects:
1. Projects Completed/No Longer Needed – these are projects started in FY17-
18 or prior and completed and/or are no longer needed as of April 13, 2018.
2. Projects in Process – these are projects approved by the City Council and
started in FY17-18 but have not been completed as of April 13, 2018. Some of
these projects may be complete by June 30, 2018, but there will be some
projects that will continue over into FY18-19.
3. Projects Carry Forward – these are projects approved to be carried forward
into FY18-19 by the City Council but have not started or scheduled to start
until FY18-19.
4. Proposed New Projects – these are recommended projects that have been
reviewed by IMAC, FAC and the Planning Commission as possible projects for
consideration to either start in FY18-19 or add to the CIP 5-year plan.
At this workshop, the City Council directed Staff to remove PVDS Bike Lane
Improvement from “Projects in Process” and Lower Hesse Park Improvement – Phase 2
from “Proposed New Projects.” At the City Council meeting on May 15, 2018, the City
Council approved the request from Palos Verdes Peninsula Land Conservancy for the
preserve signage project, so that project is now included in the Preliminary Budget for
Capital Improvement Program. The table below summarizes the preliminary budget for
FY18-19 Capital Improvement Projects by categories and funding source.
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Table 10 – FY 18-19 Approved Capital Improvement Projects
Equipment Replacement Fund
The Equipment Replacement Fund continues to operate with a balanced budget and
the estimated fund balance in this fund is $3.2 million at the close of FY17-18. This
fund is used to accumulate funding to replace equipment, furniture and vehicles at the
end of their life cycle. The expenditures scheduled for replacement in FY18-19 total
approximately $1.8 million. Items aren’t replaced solely based on the schedule, but are
reviewed by Staff to determine their current status and need for replacement. Based on
this process, the annual replacement expense is typically well below the life-cycle
schedule replacement costs. Based on the current Equipment Replacement Schedule,
the estimated inter-fund charges will remain the same as FY17-18 of $300,900.
CIP Reserves
(Fund 330)
Proposition C
(Fund 215)
Proposition A
(Fund 216)
Measure R
(Fund 220)
Quimby
(Fund 334)
PVDS Realignment - East End 50,000
Citywide ADA Transition Plan 150,000
Ladera Linda Community Center Master Plan
Construction Documents 300,000
Western Av Traffic Congestion Improvements 100,000
Connector Pipe Screens 161,100
TOTAL PROJECTS IN PROCESS 361,100 - - 100,000 300,000
ACLAD Sewer System Rehabilitation Program 250,000
Portuguese Bend Landslide Area Resurfacing
Program 600,000
Recognition Wall at City Hall Complex 100,000
Coastal Bluff Fence Replacement Program 200,000
Pavement Management Program Biennial
Update 120,000
Residential Street Rehabilitation Program Area
8 Construction 3,500,000
Residential Street Rehabilitation Program
Areas 3&4 Design 500,000
TOTAL PROJECTS CARRY FORWARD
FROM CIP 5-YEAR PLAN 4,670,000 600,000 - - -
Hesse Parking Lot and Lighting Improvement
Project - Design 75,000
Hesse Parking Lot and Lighting Improvement
Project - Construction 750,000
Hesse Park Athletic Field Improvement Project 450,000
Bubbles Restoration and Installation 75,000
Hawthorne Blvd. Beautification - Design 200,000
Silver Spur Rd. Transit Improvement - Design 50,000
Silver Spur Rd. Transit Improvement -
Construction 450,000
Arterial Fences and Walls - Citywide Standards
(Phase 2)25,000
Traffic/Transportation Improvements 500,000
SDDIP Storm Drain Deficiency Improvement
Program Various Locations - Design 250,000
Signage Program 249,000
TOTAL PROPOSED NEW PROJECTS 2,074,000 500,000 500,000 - -
GRAND TOTAL OF ALL PROJECTS 7,105,100 1,100,000 500,000 100,000 300,000
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1972 Act Fund
During the budget adoption for FY7-18, the City Council suspended the annual
supplemental property tax levy and assessments of the Citywide Landscaping and
Lighting Maintenance District (LLMD). All operating expenses that were paid by 1972
Act were transferred to General Fund and Measure M. For FY18-19, General Fund and
Measure M will continue to support these operating expenses.
Water Quality/Flood Protection Fund
The Water Quality/Flood Protection Fund is expected to have a zero beginning fund
balance in FY18-19 as all projects are scheduled to be completed by June 30, 2018.
Below is a summary of the estimated FY18-19 fund balances for the Capital
Improvement Projects Fund, Equipment Replacement Fund, and Special Revenue
Funds. These fund balance amounts are based on estimated project costs, equipment
needs and other non-General Fund expenditures expected next year.
Table 11 – Fund Balance Update for Other Funds
(in millions)
Capital
Improvement
Equipment
Replacement
Special
Revenues
Est. Beginning Fund Balance $23.2 $3.2 $11.1
Add: Revenues 0.3 0.3 $8.0
Add: Transfers In 4.8 0.0 0.0
Sub-total 28.3 3.5 19.1
Less: Preliminary Expenditures -7.1 -1.8 -6.5
Less: Continuing Projects -1.6 -3.4
Less: Transfers Out 0.0 0.0 -0.5
Est. Restricted Ending Fund Balance
6/30/2019 19.6 1.7 8.7
Less: Council Policy Reserve -3.0 0.0 0.0
Estimated Surplus Fund Balance $16.6 $1.7 $8.7
A-14
Compliance with Utility Users Tax Legislative Review Requirements
Municipal Code Section 3.30.190 requires that the City Manager submit to the City
Council an analysis of the revenues derived from the Utility User Tax (UUT) annually.
Based on the needs of the City, the City Council shall determine if any modification to
the tax rate is appropriate, or if the UUT is unnecessary. The tax rate cannot be
increased without a majority vote of the residents of the City during a Municipal Election.
The current estimate of FY18-19 UUT revenue is approximately $1.9 million (or
approximately 6% of total General Fund revenue). Based upon the operating and
capital needs of the City, Staff recommends that the current UUT rate of 3% continues
as recurring expenditures exceeded recurring revenues. Based on this, Staff would like
the City Council to consider assessing UUT for FY18-19 at its current rate when the
budget is presented for adoption on June 19, 2018.
Balanced Operating Budget
The tables below summarize how one-time and recurring revenues will offset one-time
and recurring expenditures as directed per City Council Policy No. 45. The total
General Fund revenues and expenditures in the tables below reflect all the updates to
the FY18-19 preliminary budget.
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Table 12 – FY 18-19 Recurring vs. 1-Time Revenues and Expenditures
Revenue Type Recurring One-time Total
Property Tax 13,439,000 13,439,000
Sales Tax 2,561,300 2,561,300
TOT 5,823,100 5,823,100
Franchise taxes 2,024,900 2,024,900
UUT 1,921,600 1,921,600
Business License & Golf Tax 1,290,400 1,290,400
Charges for services 2,290,300 2,290,300
Other revenue 1,403,000 169,500 1,572,500
Green Hills Settlement 150,000
CASP fees 500
Miscellaneous revenues 19,000
TOTAL REVENUES 30,753,600 169,500 30,923,100
Expenditure by Program Recurring One-time Total
City Council 139,600 15,000 154,600
45th Anniversary 15,000
City Attorney 925,000 - 925,000
Public Safety/Law Enforcement 7,187,100 - 7,187,100
City Administration 3,636,300 - 3,636,300
Finance 1,606,100 1,606,100
Community Development 3,736,300 - 3,736,300
Public Works 5,724,200 277,000 6,001,200
Parks Equipment & Repairs 180,000
Repairs Park Building 97,000
Recreation & Parks 2,855,100 - 2,855,100
Non-department 1,273,200 50,000 1,323,200
Cost Allocation & Fee Study 50,000
TOTAL EXPENDITURES 27,082,900 292,000 27,424,900
STRUCTURAL SURPLUS/(DEFICITS)3,670,700 (122,500) 3,498,200
Transfers in 220,000 - 220,000
Transfers out 4,564,700 - 4,564,700
SURPLUS/(DEFICITS)(674,000) (122,500) (846,500)
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CONCLUSION
The General Fund continues to meet the required 50% policy reserve while still showing
an estimated excess unrestricted fund balance of over $800,000 at June 30, 2019. The
Capital Improvement Fund, Equipment Replacement Fund and all Special Revenues
Funds are estimated to end FY17-18 with healthy fund balances and will be able to
support operating expenditures, as well as the 5-year capital improvement plan, as
proposed.
Staff will incorporate any additional direction from the City Council at this meeting into
the budget report for adoption at the June 19, 2018, City Council meeting.
A-17
RESOLUTION NO. 2018-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES APPROVING A BUDGET APPROPRIATION AND
ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET
FOR FISCAL YEAR 2018-2019.
WHEREAS, on June 19, 2018, the City Council conducted an advertised Public
Hearing to receive public input regarding the budget for FY 18-19;
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
Section 1: That a revenue and expenditure/expense budget is hereby adopted. The
adopted budget, by fund, is per Exhibit A with a total Estimated Ending Fund Balance of
$51,965,081 for all City funds as of June 30, 2019, exclusive of the City’s Improvement
Authority.
A. The City Manager is authorized to transfer certain Budget Appropriation
Balances within functions and/or programs when deemed necessary to do so in
accordance with Chapter 3.32 of the Rancho Palos Verdes Municipal Code.
B. City Council approval will be required for any significant changes involving
increased or decreased service levels.
C. The Director of Finance shall be responsible for constant monitoring of the
budget and shall establish and implement appropriate control mechanisms necessary for
said purpose, after approval by the City Manager.
Section 2: The FY 18-19 Revenue Budget is hereby adopted, establishing the
following revenue and internal service fund contribution levels:
B-1
GENERAL 30,923,100$
BEAUTIFICATION FUND 5,000
CIP 285,500
GAS TAX 1,798,600
1972 ACT 300
EL PRADO LIGHTING 2,500
CDBG 139,300
1911 ACT 628,000
WASTE REDUCTION 211,700
AIR QUALITY MANAGEMENT 50,900
PROPOSITION C 702,400
PROPOSITION A 849,400
PUBLIC SAFETY GRANTS 131,000
MEASURE R 545,400
MEASURE M 592,100
FEDERAL GRANTS 453,800
STATE GRANTS 600,000
HABITAT RESTORATION 12,400
SUBREGION 1 MAINTENANCE 8,100
MEASURE A 91,100
ABALONE COVE SEWER DISTRICT 57,000
GINSBURG CULTURAL ARTS BUILDING 900
DONOR RESTRICTED CONTRIBUTIONS 17,000
QUIMBY 73,000
LOW-MODERATE INCOME HOUSING 44,700
AFFORDABLE HOUSING IN LIEU 6,200
ENVIRONMENTAL EXCISE TAX 116,800
BICYCLE & PEDESTRIAN ACCESS 34,500
WATER QUALITY/FLOOD PROTECTION -
TOTAL GOVERNMENTAL & ENTERPRISE FUND REVENUES 38,380,700$
EQUIPMENT REPLACEMENT 327,200$
TOTAL INTERNAL SERVICE FUND REVENUES 327,200$
Section 3: The FY17-18 Budget is hereby adopted, establishing the following
transfers into the following funds:
GENERAL 220,000$
CIP 4,835,700
*TOTAL OPERATING TRANSFERS IN 5,055,700$
*Does not include $25,000 transfer in for Improvement Authority -
Abalone Cove and $20,000 transfer in for Improvement Authority -
Portuguese Bend
B-2
Section 4: The FY17-18 Budget is hereby adopted, establishing the following
transfers from the following funds:
GENERAL 4,564,700$
PUBLIC SAFETY GRANTS 130,000
MEASURE A 90,000
TOTAL OPERATING TRANSFERS OUT 4,784,700$
Section 5: The FY17-18 Operating and Capital Improvement Budget Programs are
hereby adopted, establishing the following allocations.
B-3
City Council 154,600$
City Manager 856,500
Legal Services 925,000
City Clerk 621,200
Community Outreach 75,100
RPV TV 289,400
Personnel 365,600
Finance 1,606,100
Information Technology - Data 1,119,400
Information Technology - Voice 113,000
Public Safety - Sheriff Services 6,318,500
Special Safety Programs 868,600
Emergency Preparedness 196,100
Public Works Administration 2,767,300
Traffic Management 502,000
Storm Water Quality 606,000
Public Building Maintenance 679,900
Parks Maintenance 680,000
Trails & Open Space Maintenance 636,000
Vehicle Maintenance 61,000
Sewer Maintenance 69,000
Community Development Administration 706,400
Planning 1,019,900
Building & Safety Services 995,100
Code Enforcement 307,800
View Restoration/Preservation 371,100
NCCP 50,000
Geology 150,000
Animal Control 136,000
Recreation Administration 1,041,400
Other Recreation Facilities 57,500
Eastview Park 5,000
Open Space Management 264,400
Fred Hesse Jr. Park 225,800
Robert E. Ryan Park 120,700
Ladera Linda Community Center 106,400
Abalone Cove Shoreline Park 123,100
Special Events 237,700
City Run Sports & Activities 9,200
Point Vicente Interpretive Center 546,200
REACH 95,300
Recreation Support Services 22,400
Non-departmental 1,323,200
SUBTOTAL GENERAL FUND EXPENDITURES 27,424,900$
B-4
Street Maintenance - Pavement Management 350,000$
Street Maintenance - Non-Pavement 1,158,800
Traffic signal maintenance 40,000
Portuguese Bend Rd. maintenance 70,000
SUBTOTAL GAS TAX FUND EXPENDITURES 1,618,800$
CIP 7,105,100$
BEAUTIFICATION -
1972 ACT -
EL PRADO LIGHTING 800
1911 ACT 617,000
WASTE REDUCTION 317,100
AIR QUALITY MANAGEMENT 50,000
PROPOSITION C 1,100,000
PROPOSITION A 1,148,300
MEASURE R 100,000
MEASURE M 536,000
FEDERAL GRANTS 316,000
STATE GRANTS -
HABITAT RESTORATION 179,500
SUBREGION 1 MAINTENANCE 46,800
ABALONE COVE SEWER DISTRICT 429,600
DONOR RESTRICTED CONTRIBUTIONS 25,000
COMMUNITY DEVELOPMENT BLOCK GRANT -
QUIMBY 300,000
BICYCLE & PEDESTRIAN ACCESS -
WATER QUALITY/FLOOD PROTECTION -
SUBTOTAL OTHER FUNDS EXPENDITURES 12,271,200$
EQUIPMENT REPLACEMENT 1,775,200$
SUBTOTAL INTERNAL SERVICE FUNDS EXPENDITURES 1,775,200$
PASSED, APPROVED and ADOPTED the 19th day of June 2018.
___________________________
ATTEST: MAYOR
_____________________
CITY CLERK
State of California )
County of Los Angeles )
B-5
City of Rancho Palos Verdes )
I, EMILY COLBORN, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2018-__ was duly and regularly passed and adopted by the said City
Council at regular meeting thereof held on June 19, 2018.
___________________________
CITY CLERK
B-6