CC SR 20190219 L - FY17-18 CAFR
RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 02/19/2019
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to receive and file the FY17-18 Comprehensive
Annual Financial Report (CAFR) of the City of Rancho Palos Verdes
RECOMMENDED COUNCIL ACTION:
(1) Receive and file the FY17-18 Comprehensive Annual Financial Report (CAFR) of
the City of Rancho Palos Verdes and the Statements on Auditing Standards
(SAS) 114 Letter from Independent Auditors to Those Charged with Governance.
FISCAL IMPACT: None
Amount Budgeted: $0
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Vina Ramos, Accounting Supervisor
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. FY17-18 Comprehensive Annual Financial Report (CAFR) (page A-1)
B. SAS 114 Letter from Independent Auditors to Those Charged With
Governance (page B-1)
BACKGROUND AND DISCUSSION:
The Comprehensive Annual Financial Report (CAFR) provides a narrative overview and
analysis of the City’s financial activities for the Fiscal Year ended June 30, 2018. The
CAFR is prepared in conformity with generally accepted accounting principles (GAAP)
and Governmental Accounting Board (GASB) requirements. Before its issuance, the
CAFR is audited by an independent public accounting firm. On December 31, 2018, the
City’s auditor, White Nelson Diehl Evans LLP (WNDE), issued an unqualified (clean)
opinion of the City’s FY17-18 financial statements.
Overview of the CAFR
The City’s CAFR includes the following major sections and information:
1
• Introductory Section: Letter of Transmittal prepared by the City’s management
• Financial Section: Independent Auditors’ Report
• Management’s Discussion & Analysis (MD&A): analytical overview of the City’s
financials prepared by the Finance Department
• Basic Financial Statements: information on City’s finances from July 1, 2017
through June 30, 2018
• Required Supplementary Information: information on pension and breakout of the
individual funds
• Statistical Section: historical financial trends
Financial Highlights
The City’s government-wide financial statements are designed to provide readers with a
broad overview of the City’s finances. The financial statements combine the governmental
and business-type activities for the purpose of presenting an overall picture of the
financial position and results of operations of the government. The governmental activities
are the City’s General Fund, Capital Improvement Fund, and Special Revenue Funds.
The business-type activities are in the City’s Enterprise Fund which accounts for the
Storm Water Quality Fund. The results for both activities are reflected in the Statement of
Net Position which is calculated by the total assets and deferred outflows minus liabilities
and deferred inflows.
NET POSITION: GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES
The Statement of Net Position presents the City’s investments in capital assets, restricted
funds, and unrestricted funds. On June 30, 2018, the City’s Net Position was $221.8
million, with $160.4 million net invested in capital assets, $15.4 million is restricted for
Net Position: Governmental and Business-Type FY2017 FY2018
Variance
(Increase/(Decrease)
Current Assets 79,850,236$ 75,909,948$ (3,940,288)$
Capital Assets 154,747,968$ 160,416,812$ 5,668,844$
Total Assets 234,598,204$ 236,326,760$ 1,728,556$
Add: Deferred outflows of resources (Pension)2,804,770$ 3,243,597$ 438,827$
Long-term Liabilities and outstanding 9,746,985$ 11,202,942$ 1,455,957$
Other Liabilities 5,022,304$ 6,271,476$ 1,249,172$
Deduct: Total Liabilities 14,769,289$ 17,474,418$ 2,705,129$
Deduct: Deferred inflows of resources (Pension)280,832$ 338,809$ 57,977$
Net Position (Governmental and Business-Type)222,352,853$ 221,757,130$ (595,723)$
2
approved carryover projects in the Special Revenue Funds and Capital Improvement, and
$1.9 million is restricted for the Improvement Authority, Subregion One, and Natural
Communities Conservation Plan. The remaining $44 million is unrestricted, which may be
used to meet the City’s ongoing obligations to its citizens and creditors. The $221.8 million
of Net Position decreased by $0.6 million from the prior year, and was comprised of a net
increase of $0.4 million in the governmental activities and a net decrease of $1 million in
the business-type activities.
Below, the Statement of Net Position is broken down into Governmental Activities and
Business Activities.
NET POSITION: GOVERNMENTAL ACTIVITIES ONLY
In comparison to the previous year, the assets in governmental activities increased by
$1.8 million, with the majority of this amount due to completed CIP projects, including
Residential Rehabilitation Program Area 7, Hawthorne Blvd. Pedestrian Linkage, and
PVDE Guardrail. The other increase in assets is attributed to the deferred outflows of the
pension for $0.4 million. Although the assets increased by a total of $2.2 million, the City’s
liabilities also increased by $1.8 million, resulting in a net increase of $0.4 million in the
governmental funds.
Governmental FY2017 FY2018
Variance
(Increase/(Decrease)
Current Assets 75,078,443$ 74,878,019$ (200,424)$
Capital Assets 123,437,427$ 125,420,414$ 1,982,987$
Total Assets 198,515,870$ 200,298,433$ 1,782,563$
Add: Deferred outflows of resources (Pension)2,804,770$ 3,243,597$ 438,827$
Long-term Liabilities and outstanding 9,746,985$ 11,202,942$ 1,455,957$
Other Liabilities 4,850,570$ 5,111,936$ 261,366$
Deduct: Total Liabilities 14,597,555$ 16,314,878$ 1,717,323$
Deduct: Deferred inflows of resources (Pension)280,832$ 338,809$ 57,977$
Net Position (Governmental)186,442,253$ 186,888,343$ 446,090$
3
NET POSITION: BUSINESS-TYPE ACTIVITIES ONLY
For business-type activities, the Net Position decreased by $1.0 million due to the
completion of the storm drain projects in the Storm Water Quality Fund.
Additional detailed information on City’s Statement of Net Position is on pages 8-9 and
pages 15-28 of the CAFR (Attachment A).
General Fund Balance Results
The General Fund is the City’s primary operating fund that accounts for taxes, licenses
and permits, charges for services, fines and forfeitures, and use of money and property.
The General Fund also accounts for the expenditures related to the core administrative
and operational services of the City.
Business-Type FY2017 FY2018
Variance
(Increase/(Decrease)
Current Assets 4,771,793$ 1,031,929$ (3,739,864)$
Capital Assets 31,310,541$ 34,996,398$ 3,685,857$
Total Assets 36,082,334$ 36,028,327$ (54,007)$
Add: Deferred outflows of resources (Pension)-$ -$ -$
Long-term Liabilities and outstanding -$ -$ -$
Other Liabilities 171,734$ 1,159,540$ 987,806$
Deduct: Total Liabilities 171,734$ 1,159,540$ 987,806$
Deduct: Deferred inflows of resources (Pension)-$ -$ -$
Net Position (Business-Type)35,910,600$ 34,868,787$ (1,041,813)$
4
The table above is a General Fund summary of the Statement of Revenues,
Expenditures, and Changes in Fund Balance from page 20 of the CAFR. The financial
year-end details were previously presented to the City Council on November 7, 2018.
On June 30, 2018, the General Fund Balance was $18 million. Of this amount, the
unassigned restricted fund balance is $16.4 million, or 60%, of the General Fund
expenditures, as shown on page 18 of the CAFR. In accordance with the City Council’s
Reserve Policy, the unassigned fund balance has historically been maintained at or
above the policy threshold level of 50% of the annually budgeted General Fund
expenditures.
Additional detailed information on City’s General Fund is on pages 18-28 and pages 46-
47 of the CAFR (Attachment A).
Other Relevant Details
GASB 68
The GASB approved a new standard that took effect in FY14-15. The objective of
GASB 68 is to improve accounting and financial reporting by the state and local
governments with respect to pensions. State and local agencies are required to
recognize applicable pension amounts as a liability in their financial statements
(Balance Sheet) and also provide extensive footnote disclosures and additional
supplementary schedules related to their pension plan.
As of June 30, 2018, the City reported a liability of $11.1 million for its proportionate
share of the net pension liability, an increase of $1.4 million from the previous year. The
increase is mainly due to the change in discount rate assumptions from 7.65% (which
includes CalPERS administrative costs) to $7.15%. 95%, or $10.5 million, of the liability
is attributed to Tier 1 pensions that were enhanced in 2007, and these pension benefits
have since been reduced for new employees by the City Council and pension reform
laws.
The City’s net pension liability for the Miscellaneous Plan is measured as the
proportionate share of the net pension liability of the collective cost-sharing plan
amongst all the cities in the plan. The City’s net pension liability of the Plan is measured
as of June 30, 2017, and the total pension liability for the Miscellaneous Plan used to
General Fund
Revenues 30,452,619$
Less: Operating Expenditures (24,615,562)$
Excess of Revenues Over Expenditures 5,837,057$
Transfers (4,583,500)$
Net Change in Fund Balance 1,253,557$
Fund Balance - Beginning of Year 16,825,403$
General Fund Balance 6/30/18 18,078,960$
5
calculate the net pension liability was determined by an actuarial valuation as of June
30, 2016, rolled forward to June 30, 2017, using standard update procedures. The City’s
proportion of the net pension liability was based on a projection of the City’s long-term
share of contributions to the pension plans relative to the projected contributions of all
participating employers, actuarially determined.
Additional detailed information on City’s Pension is on pages 48-53 and pages 61-62 of
the CAFR (Attachment A).
Independent’s Audit Report
On December 31, 2018, WNDE issued an unqualified (clean) opinion of the City’s
FY17-18 financial statements (pages 1-3 of the CAFR). A clean opinion certifies that the
City’s FY17-18 CAFR meets the standards and requirements established by GASB for
presentation of financial data, note disclosure, and statistical information.
In January, Staff submitted the CAFR to the Government Finance Officers Association
(GFOA) for the Certificate of Achievement for Excellence in Finance Reporting. In order
to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized CAFR. This report must satisfy both generally
accepted accounting principles and applicable legal requirements. If awarded, it will be
the City’s 25th consecutive year to receive the award.
Ad-Hoc Audit Subcommittee
As part of the City Council’s policy, an Audit Committee is established as a
Subcommittee of the City Council, comprised of two members of the City Council,
annually appointed by the Mayor. The purpose of the Ad-Hoc Audit Subcommittee is to
provide review and oversight of the independent audit of the City’s financial statements.
The Committee shall report all findings to the City Council.
On January 23, 2019, City Staff, including Director of Finance Deborah Cullen, and
audit partner Robert Callanan conducted an exit interview with the City Council’s Ad-
Hoc Subcommittee, comprised of Mayor Duhovic and Mayor Pro Tem Cruikshank.
Since WNDE issued a “clean” opinion, there are no significant findings to report back to
the City Council.
Staff requests for the City Council’s approval to receive and file this report, including the
FY17-18 CAFR and SAS 114 letter. The CAFR book is available at City Hall and online
on the City’s Transparency webpage at http://www.rpvca.gov/286/Comprehensive-
Annual-Financial-Report-CA.
6
CITY OF RANCHO PALOS VERDES
ANNUAL FINANCIAL REPORT
COMPREHENSIVE
C A L I F O R N I A
FISCAL YEAR ENDED
JUNE 30TH, 2018
Photo and Design by
Karen Okstad
A-1
A-2
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
Prepared by:
Finance Department
A-3
A-4
INTRODUCTORY SECTION
A-5
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-6
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2018
Table of Contents
i
Page
INTRODUCTORY SECTION:
Table of Contents i
Letter of Transmittal v
Directory of Officials xiii
Organizational Chart xiv
GFOA Certificate of Achievement for Excellence in Financial Reporting xv
FINANCIAL SECTION:
Independent Auditors’ Report 1
Management’s Discussion and Analysis 4
Government-Wide Financial Statements
Statement of Net Position 15
Statement of Activities 16
Fund Financial Statements
Government Funds
Balance Sheet 18
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 19
Statement of Revenues, Expenditures and Changes in Fund Balances 20
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities 21
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual 22
Proprietary Funds
Statement of Net Position 24
Statement of Revenues, Expenses and Changes in Net Position 25
Statement of Cash Flows 26
Fiduciary Funds
Statement of Fiduciary Net Position 27
Statement of Changes in Fiduciary Net Position 28
Notes to the Financial Statements 29
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability 61
Schedule of Pension Contributions 62
A-7
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2018
Table of Contents
ii
Supplementary Information
Non-Major Governmental Funds
Combining Balance Sheet 66
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 72
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual:
Special Revenue Funds
Gas Tax Fund 78
1972 Act Fund 79
El Prado Fund 80
1911 Act Fund 81
Beautification Fund 82
Waste Reduction Fund 83
Air Quality Management Fund 84
Proposition C Fund 85
Proposition A Fund 86
Public Safety Grants Fund 87
Measure R Fund 88
Measure A Fund 89
Measure M Fund 90
Abalone Cove Sewer Assessment Fund 91
Dr. Allen and Charlotte Ginsburg Cultural Arts Building Fund 92
Donor Restricted Contributions Fund 93
Joint Powers Improvement Authority - Portuguese Bend Fund 94
Community Development Block Grant Fund 95
Federal Grants 96
Quimby Fund 97
Environmental Excise Tax Fund 98
Bikeways 99
Capital Projects Fund
Low-Moderate Income Housing Capital Projects Fund 100
Affordable Housing In-Lieu Capital Projects Fund 101
Permanent Funds
Habitat Restoration Fund 102
Subregion One Maintenance Fund 103
Joint Powers Improvement Authority - Abalone Cove Fund 104
Capital Improvement Major Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual 105
A-8
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2018
Table of Contents
iii
FINANCIAL SECTION (Unaudited)
Financial Trends
Net Position by Component 107
Changes in Net Position 109
Governmental Activities Tax Revenue by Source 112
Fund Balances of Governmental Funds - Before GASB 54 113
Fund Balances of Governmental Funds - After GASB 54 114
Changes in Fund Balances of Governmental Funds 115
General Governmental Tax Revenues by Source 117
Revenue Capacity
Assessed Value of Taxable Property 118
Assessed Value and Estimated Actual Value of Taxable Property 119
Property Tax Rates - Direct and Overlapping Governments 120
Principal Property Tax Payers 122
Property Tax Levies and Collections 123
Debt Capacity
Direct and Overlapping Governmental Activities Debt 124
Legal Debt Margin Information 125
Demographic and Economic Information
Demographic and Economic Statistics 127
Principal Sales Tax Producers 129
Principal Employers 130
Operating Information
Full-time Equivalent City Government Employees by Function 131
Operating Indicators by Function 132
Capital Asset Statistics by Function 134
A-9
iv
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17
xii
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-18
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FY 2017-2018
CITY OFFICIALS
Brian Campbell
Mayor
Jerry V. Duhovic
Mayor Pro Tem
Susan M. Brooks
Councilwoman
Ken Dyda
Councilman
Anthony M. Misetich
Councilman
CITY STAFF
Doug Willmore
City Manager
Gabriella Yap
Deputy City Manager
Deborah Cullen
Director of Finance
Cory Linder
Director of Recreation & Parks
Ara Mihranian
Director of Community Development
Elias Sassoon
Director of Public Works
A-19
RESIDENTS OF RANCHO PALOS VERDES
CITY COUNCIL
PLANNING
COMMISSION FINANCE ADVISORY
COMMITTEE
INFRASTRUCTURE
MANAGEMENT
ADVISORY COMMITTEE
TRAFFIC SAFETY COMMITTEE
EMERGENCY PREPAREDNESS COMMITTEE
STORM DRAIN
OVERSIGHT
COMMITTEE (WQFPP)
CITY MANAGER
CITY ATTORNEY
DEPUTY CITY
MANAGER
FINANCE PUBLIC WORKSCOMMUNITY
DEVELOPMENT RECREATION &
PARKS INFORMATION
TECHNOLOGY
HUMAN
RESOURCESCITY CLERK PUBLIC SAFETY
A-20
Go vernment Finance Officers Ass oc iation
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rancho Palos Verdes
California
For its Comprehensive Annua l
Financial Report
for the F isca l Year Ended
June 30 , 2017
Executive Director/CEO
A-21
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-22
FINANCIAL SECTION
A-23
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-24
2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
1
INDEPENDENT AUDITORS’ REPORT
City Council Members
City of Rancho Palos Verdes
Rancho Palos Verdes, California
Report on the Financial Statements
We have audited the accompanying 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
(the City), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the basic
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the City’s preparation and fair presentation of the
financial statements in order to design 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. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
A-25
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City of Rancho Palos Verdes, as of June 30, 2018, and the respective changes
in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the
general fund for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedule of proportionate share of the net pension liability, and the schedule of pension
contributions, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the RSI 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 financial 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 information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City’s basic financial statements. The introductory section, combining statements and individual fund
schedules, statistical section are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The combining statements and individual fund schedules, as listed in the table of contents, are the responsibility
of management and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such 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 basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining statements
and individual fund schedules are fairly stated in all material respects in relation to the basic financial statements
as a whole.
The introductory section and statistical section have 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.
A-26
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2018, on
our consideration of the City’s internal control over financial reporting and on 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 internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering City’s internal control over financial reporting and compliance.
Irvine, California
December 31, 2018
A-27
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-28
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
4
MANAGEMENT’S DISCUSSION AND ANALYSIS
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 30, 2018. We encourage readers to
consider the information presented here in conjunction with additional information that we
have furnished in our Letter of Transmittal, which can be found on pages v-xi of this report.
Financial Highlights
The assets and deferred outflows of resources of the City of Rancho Palos Verdes exceed
its liabilities and deferred inflows of resources at the close of the Fiscal Year ended June
30, 2018, by $221.7 million (Net Position). Of this amount, $44.0 million (Unrestricted Net
Position) may be used to meet the City’s ongoing obligations to its citizens and creditors.
The remaining amount is invested in capital assets or is otherwise restricted, and
therefore not available to meet the City’s obligations.
At the fiscal year ended June 30, 2018, the City’s Total Net Position decreased by $0.6
million. The primary factors for the increase are discussed below.
As of June 30, 2018, the City’s Governmental Funds reported combined ending Fund
Balances of $59.3 million, a decrease of $0.5 million in comparison to the prior year. The
decrease is attributable to the maintenance and capital projects that were completed by
the end of the year.
As of June 30, 2018, unassigned fund balance for the General Fund was $16.4 million or
60% of General Fund expenditures. The $16.1 million of this amount constitutes the City
Council’s General Fund Reserve (rainy day fund). Due to the City Council’s reserve
policy, the unassigned fund balance has historically been maintained at or above the
policy threshold level of 50% of annually budgeted General Fund expenditures.
OVERVIEW OF THE BASIC 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 information in addition to the
basic financial statements themselves.
A-29
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
5
Government-Wide Financial Statements
The Government-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 Statement of Net Position presents information on all of the City’s assets, deferred
outflows of resources, liabilities, and deferred inflows of resources, with the difference
between the two reported as Net Position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of
Rancho Palos Verdes is improving or deteriorating.
The Statement of Activities presents information showing how the government’s net
position changed during the most recent Fiscal Year. All changes in net position 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 (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business-type activities). The governmental activities of
the City include general government, public safety, public works, community development
and parks 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 storm
drain facilities.
The Government-Wide Financial Statements include not only the City of Rancho Palos
Verdes itself (known as the Primary Government), but also a legally separate
Improvement Authority for which the City of Rancho Palos Verdes is financially
accountable. Financial information for this Component Unit has been included as an
integral part of the primary government.
The Government-Wide Financial Statements can be found on pages 15-17 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.
A-30
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
6
Governmental Funds
Governmental 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-term
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 29 individual Governmental Funds during
the Fiscal Year ended June 30, 2018. Information 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 and the
Capital Improvements 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 form
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 18-23 of this
report.
Proprietary Funds
The City of Rancho Palos Verdes maintains two types of Proprietary 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 Service Funds are an
accounting device used to accumulate and allocate costs internally among the City’s
various functions. The City uses Internal Service Funds to account for its fleet of vehicles,
computer systems, furniture and equipment, and Civic Center building
replacement/improvements. Because these services predominantly benefit the
A-31
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
7
governmental function, they have been included within governmental activities in the
Government-Wide Financial Statements.
Proprietary Fund Financial Statements provide the same type of information as the
Government-Wide Financial Statements, only in more detail. These statements can be
found on pages 24-26 of this report. The Proprietary Fund Financial Statements provide
separate information for the Enterprise Fund and the Internal Service Funds.
Fiduciary Fund
The City is a fiduciary for the Successor Agency to the Rancho Palos Verdes
Redevelopment Agency (the “Successor Agency”). The City is responsible for ensuring
that the assets reported in the Successor Agency’s private-purpose trust fund are only:
1) used to extinguish the obligations of the former RDA; or 2) transferred to another
agency pursuant to state redevelopment dissolution law. All of the fiduciary activities are
reported in a separate Statement of Fiduciary Net Position and Statement of Changes in
Fiduciary Net Position. We exclude these activities from the City’s Government-Wide
Financial Statement because the City cannot use these assets to finance its operations.
Individual Fiduciary Fund statements can be found on pages 27-28 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the
data provided in the Government-Wide and Fund Financial Statements. The notes to the
financial statements can be found on pages 29-60 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 Statements. Combining and individual fund statements and schedules can be
found on pages 63-105 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position 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 and deferred
outflows of resources exceeded liabilities and deferred inflows of resources by $221.7
million at June 30, 2018. By far, the largest portion of the City’s Net Position of $160.4
million or 72% reflects its net investment in Capital Assets (e.g. Land, Infrastructure,
Buildings, and Equipment). The City uses these Capital Assets to provide services to its
citizens; consequently, these assets are not available for future spending.
A-32
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
8
City of Rancho Palos Verdes Net Position
A portion of the City’s Net Position of $17.3 million or 8%, represents resources subject
to external restrictions. The remaining balance of Unrestricted Net Position of $44.0
million or 20 % may be used to meet the government’s ongoing obligations to its citizens
and creditors.
Total current and other assets decreased by $3.9 million in comparison to the previous
year. This is mainly due to the completion of the storm drain projects in the Water Quality
Flood Protection Fund. Capital assets increased by $5.6 million mainly due to the City’s
roadway capital projects.
Governmental Activities
Governmental Activities increased the City’s Net Position by $0.4 million primarily due to
the higher revenues received when compared to the prior year.
A-33
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
9
City of Rancho Palos Verdes Changes in Net Position
2018 2017 2018 2017 2018 2017
Program revenues:
Charges for services 4,626,968$ 4,269,353$ -$ 11,464$ 4,626,968$ 4,280,817$
Operating contributions and grants 4,481,324 4,195,757 - - 4,481,324 4,195,757
Capital contributions and grants 769,248 818,209 - - 769,248 818,209
General revenues:
Property taxes 13,761,647 13,301,886 - - 13,761,647 13,301,886
Other taxes 12,504,276 11,823,625 - 12,504,276 11,823,625
Other 1,600,966 1,719,817 28,934 38,246 1,629,900 1,758,063
Total revenues 37,744,429 36,128,647 28,934 49,710 37,773,363 36,178,357
Administration 7,258,049$ 6,745,869$ - 7,258,049 6,745,869
Public safety 7,338,918 6,534,248 - 7,338,918 6,534,248
Public works 16,072,939 10,637,865 - 16,072,939 10,637,865
Community development 2,735,948 2,663,556 - 2,735,948 2,663,556
Parks and recreation 2,726,331 2,433,822 - 2,726,331 2,433,822
Non-departmental 1,166,154 2,400,364 - 1,166,154 2,400,364
Water Quality Flood Protection - - 1,070,747 1,399,913 1,070,747 1,399,913
Total expenses 37,298,339 31,415,724 1,070,747 1,399,913 38,369,086 32,815,637
(De crease) / Increase in net position 446,090 4,712,923 (1,041,813) (1,350,203) (595,723) 3,362,720
(Decrease) / Increase in net position 446,090 4,712,923 (1,041,813) (1,350,203) (595,723) 3,362,720
Net position - beginning of fiscal year 186,442,253 181,729,330 35,910,600 37,260,803 222,352,853 218,990,133
Net position - end of fiscal year 186,888,343$ 186,442,253$ 34,868,787$ 35,910,600$ 221,757,130$ 222,352,853$
Governmental Business-type
Activities Activities Total
A-34
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
10
Sources of Revenue - Governmental Activities
Expenses by Function – Governmental Activities
A-35
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
11
Business-Type Activities
Business-type activities decreased the City’s net position by $1.0 million due to
expenditures related to storm drain projects in the Water Quality Flood Protection Fund.
FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS
As of the end of the current fiscal year, the City’s Governmental Funds reported combined
ending Fund Balances of $59.3 million, a decrease of $0.5 million in comparison to the
prior year. Approximately $57.4 million or 97% of the combined ending Fund Balances
constitutes spendable fund balance. The remainder of the combined ending Fund
Balances are either non-spendable due to legal restrictions or non-spendable in the form
of prepaid items and inventory. Additional information on the non-spendable items can be
found in Note # 7 on pages 47-48 of this report.
The General Fund is the chief operating fund of the City of Rancho Palos Verdes. At the
end of the current fiscal year, the unassigned fund balance of the General Fund is $16.4
million, while total Fund Balance reached to $18.0 million. As a measure of the General
Fund’s liquidity, it may be useful to compare both Unassigned Fund Balance and Total
Fund Balance to total fund uses (expenditures and transfers out). Unassigned Fund
Balance represents 60% of total General Fund uses, while total Fund Balance represents
56% of the same amount.
The fund balance of the City’s General Fund increased by $1.2 million. The increased
amount is primarily attributable to the tax revenues and investment income received when
compared to the prior year results.
The CIP Fund Balance ended the year at $24.4 million, a decrease of $2.6 million in
comparison to the previous year. The majority of the decrease is due to the expenditures
from the completed capital improvement projects.
Financial Analysis of Proprietary Funds
The City’s Proprietary Funds provide the same type of information found in the
Government-Wide Financial Statements, but in more detail. The Net Position of the
Enterprise Fund at the end of the fiscal year is $34.8 million, a decrease to the Net
Position by $1.0 million. The decreased amount is due to the payments made for the
completed storm drain projects.
The Net Position of the Internal Service Funds at the end of the fiscal year amounted to
$3.1 million, a decrease to the Net Position by $.04 million. The decreased amount is due
to the payments made for the City’s new permitting system and financial software.
A-36
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
12
General Fund Budgetary Highlights
The difference between original budgeted operating expenditures and the final amended
budget was an increase of $1.8 million and is briefly summarized as follows:
An increase of $760,000 in Professional and Technical Services from the City
Council approved projects. A portion of the increase in the amount of $250,000 is
from continuing appropriations from the prior fiscal year.
An increase of $1 million in Supplies and Equipment comprised primarily of
purchase orders carried forward from the previous fiscal year. One of major
increases in the amount $740,000 is attributed to ALPR (Automatic License Plate
Readers) and Homeowners Association grants.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. The City’s investment in Capital Assets for its Governmental activities
as of June 30, 2018, amounts to $125.4 million (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 $1.9 million or 2%.
Major capital asset events during the current fiscal year included the following:
Depreciation of $6.2 million was recorded for the City’s Capital Assets.
A total of $8.2 million of construction in progress was added for various projects.
The Capital Assets (net of accumulated depreciation) for Business-type activities as of
June 30, 2018 is $35 million.
A-37
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
13
City of Rancho Palos Verdes Capital Assets (Net of Depreciation)
Additional information on the City’s Capital Assets can be found in Note #4 on pages 42-
43 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 $442,682 for Employee Compensated Absences.
City of Rancho Palos Verdes Outstanding Debt
At the fiscal year ended June 30, 2018, the City’s total debt decreased by $18 thousand
or 4%.
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 $1,749,390,000.
2018 2017
Employee compensated absences 424,249$ 442,682$
Total 424,249$ 442,682$
Governmental
Activities
A-38
CITY OF RANCHO PALOS VERDES
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2018
14
ECONOMIC FACTORS AND NEXT YEAR BUDGETS AND RATES
Property tax revenue accounts for about 34.5% of Government-Wide
revenues. Local property values remain strong, and the City’s property
assessments grew by 5.73% for FY 2017-18.
The Consumer Price Index for Los Angeles County increased by 4.0% for the 12
months ended June 2018. The City’s original FY 2018-19 General Fund
expenditure budget increased by 7.1% when compared to the original FY 2017-18
budget. The majority of revenue in excess of budgeted expenditures (about $3.5
million) has been programmed for capital improvement projects.
REQUESTS FOR INFORMATION
This Financial Report is designed to provide a general overview of the financial position
of the City of Rancho Palos Verdes for all those with an interest in the government’s
finances. Questions concerning any of the information provided in this report, or requests
for additional financial information, should be addressed to the Finance Department at
30940 Hawthorne Boulevard, Rancho Palos Verdes, CA 90275 or finance@rpvca.gov.
A-39
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-40
BASIC FINANCIAL STATEMENTS
A-41
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-42
Governmental Business-type
Activities Activity Total
ASSETS
CURRENT ASSETS:
Cash and investments 63,069,957$ 1,029,409$ 64,099,366$
Receivables:
Taxes 2,028,014 - 2,028,014
Interest 133,419 2,520 135,939
Notes 8,125,837 - 8,125,837
Other 607,393 - 607,393
Inventory 25,454 - 25,454
Prepaid costs 887,945 - 887,945
TOTAL CURRENT ASSETS 74,878,019 1,031,929 75,909,948
NONCURRENT ASSETS:
Receivable from Successor Agency 10,612,857 - 10,612,857
Allowance for Successor Agency receivable (10,612,857) - (10,612,857)
Capital assets, not being depreciated:
Land 42,087,575 1,428,243 43,515,818
Construction in progress 1,646,826 4,432,416 6,079,242
Capital assets, being depreciated, net:
Property and equipment 626,565 - 626,565
Buildings and improvements 6,743,360 - 6,743,360
Infrastructure 74,316,088 29,135,739 103,451,827
TOTAL NONCURRENT ASSETS 125,420,414 34,996,398 160,416,812
TOTAL ASSETS 200,298,433 36,028,327 236,326,760
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 3,243,597 - 3,243,597
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities 3,945,628 1,025,045 4,970,673
Retentions payable 216,320 134,495 350,815
Unearned revenue 9,835 - 9,835
Deposits payable 594,157 - 594,157
Current portion of noncurrent liabilities 345,996 - 345,996
TOTAL CURRENT LIABILITIES 5,111,936 1,159,540 6,271,476
NONCURRENT LIABILITIES:
Due beyond one year 78,253 - 78,253
Net pension liability 11,124,689 - 11,124,689
TOTAL NONCURRENT LIABILITIES 11,202,942 - 11,202,942
TOTAL LIABILITIES 16,314,878 1,159,540 17,474,418
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 338,809 - 338,809
NET POSITION
Net invested in capital assets 125,420,414 34,996,398 160,416,812
Restricted for:
Expendable 15,411,507 - 15,411,507
Nonexpendable 1,888,813 - 1,888,813
Unrestricted 44,167,609 (127,611) 44,039,998
TOTAL NET POSITION 186,888,343$ 34,868,787$ 221,757,130$
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET POSITION
June 30, 2018
See accompanying notes to basic financial statements.
15 A-43
Operating Capital
Charges for Grants and Grants and
Functions/programs Expenses Services Contributions Contributions
Governmental Activities:
Administration 7,258,049$ 1,031,675$ 17,121$ -$
Public safety 7,338,918 123,970 139,416 -
Public works 16,072,939 658,822 4,324,787 769,248
Parks and recreation 2,726,331 729,409 - -
Community development 2,735,948 2,083,092 - -
Non-departmental 1,166,154 - - -
Total governmental activities 37,298,339 4,626,968 4,481,324 769,248
Business-type Activity:
Water Protection Flood Control 1,070,747 - - -
Total primary government 38,369,086$ -$ 4,481,324$ 769,248$
General revenues:
Taxes:
Property taxes
Transient occupancy tax
Franchise tax
Utility user tax
Other taxes
Intergovernmental revenue - sales tax
Investment income
Unrestricted grants, contributions and other revenues
Total general revenues
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
For the year ended June 30, 2018
See accompanying notes to basic financial statements.
16 A-44
Net Revenue (Expense) and
Changes in Net Position
Governmental Business-type
Activities Activity Total
(6,209,253)$ -$ (6,209,253)$
(7,075,532) - (7,075,532)
(10,320,082) - (10,320,082)
(1,996,922) - (1,996,922)
(652,856) - (652,856)
(1,166,154) - (1,166,154)
(27,420,799) - (27,420,799)
- (1,070,747) (1,070,747)
(27,420,799) (1,070,747) (28,491,546)
13,761,647 - 13,761,647
5,615,044 - 5,615,044
2,128,727 - 2,128,727
1,837,690 - 1,837,690
402,732 - 402,732
2,520,083 - 2,520,083
838,328 28,934 867,262
762,638 - 762,638
27,866,889 28,934 27,895,823
446,090 (1,041,813) (595,723)
186,442,253 35,910,600 222,352,853
186,888,343$ 34,868,787$ 221,757,130$
17 A-45
Capital
Projects Other Total
Capital Governmental Governmental
General Improvements Funds Funds
Cash and investments 18,239,105$ 24,840,674$ 17,440,869$ 60,520,648$
Receivables:
Taxes 2,002,409 - 25,605 2,028,014
Interest 40,884 49,009 38,458 128,351
Other 115,920 20,112 471,361 607,393
Due from other funds 80,771 - - 80,771
Inventory 25,454 - - 25,454
Prepaid items 887,945 - - 887,945
Receivable from Successor Agency 10,612,857 - - 10,612,857
Allowance for Successor Agency Receivable (10,612,857) - - (10,612,857)
TOTAL ASSETS 21,392,488$ 24,909,795$ 17,976,293$ 64,278,576$
LIABILITIES:
Accounts payable and accrued liabilities 2,681,972$ 297,162 963,380 3,942,514$
Due to other funds - - 80,771 80,771
Retentions payable 9,162 207,158 - 216,320
Unearned revenue - - 9,835 9,835
Deposits payable 594,157 - - 594,157
TOTAL LIABILITIES 3,285,291 504,320 1,053,986 4,843,597
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 28,237 - 85,112 113,349
FUND BALANCES (DEFICIT):
Non-Spendable
Endowment principal - - 750,000 750,000
Reimbursement settlement agreement - - - -
Prepaid items 887,945 - 1,000,000 1,887,945
Inventory 25,454 - - 25,454
Habitat restoration - - 138,813 138,813
Restricted - 1,438,421 13,973,086 15,411,507
Committed 715,164 - - 715,164
Assigned - 22,967,054 975,296 23,942,350
Unassigned 16,450,397 - - 16,450,397
TOTAL FUND BALANCES 18,078,960 24,405,475 16,837,195 59,321,630
TOTAL LIABILITIES, DEFERRED INFLOWS,
AND FUND BALANCES 21,392,488$ 24,909,795$ 17,976,293$ 64,278,576$
ASSETS
LIABILITIES AND FUND BALANCES
CITY OF RANCHO PALOS VERDES
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2018
See accompanying notes to basic financial statements.
18 A-46
Fund balances - total governmental funds 59,321,630$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported in the governmental funds balance sheet.124,799,199
Receivables not available to pay for current period expenditures are reported as unavailable 113,349
revenue in the financial statements.
Long-term notes receivable are not current available resources and, therefore, do not affect the
governmental fund balance.8,125,837
Long-term liabilities are not due and payable in the current period and, therefore, are not reported
in the governmental funds.(424,249)
The pension liability and related amounts are not due and payable in the current period and,
therefore, are not reported in the governmental funds. Deferred outflows of resources and deferred inflows
of resources related pensions are only reported in the Statement of Net Position as the changes in these
amounts effects only the government-wide statements for governmental activities:
Net pension liability (11,124,689)
Deferred outflows of resources related to pensions 3,243,597
Deferred inflows of resources related to pensions (338,809)
Internal service funds are used by management to charge the costs of certain activities, including
equipment and building replacement to individual funds. The assets and liabilities of the
internal service funds are included in the Statement of Net Position. 3,172,478
Net position of governmental activities 186,888,343$
BALANCE SHEET TO THE STATEMENT OF NET POSITION
June 30, 2018
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE GOVERNMENTAL FUNDS
See accompanying notes to basic financial statements.
19 A-47
Capital
Projects Other Total
Capital Governmental Governmental
General Improvements Funds Funds
REVENUES:
Taxes 25,532,519$ -$ 733,389$ 26,265,908$
Licenses and permits 3,094,984 - - 3,094,984
Revenue from other agencies 81,604 - 5,263,193 5,344,797
Charges for services 892,803 - 219,802 1,112,605
Fines and forfeitures 143,753 - - 143,753
Use of money and property 206,893 303,782 203,096 713,771
Other revenues 500,063 - 538,214 1,038,277
TOTAL REVENUES 30,452,619 303,782 6,957,694 37,714,095
EXPENDITURES:
Current:
Administration 5,867,271 - - 5,867,271
Public safety 7,398,815 - - 7,398,815
Public works 4,954,053 - 6,113,638 11,067,691
Parks and recreation 2,493,321 - - 2,493,321
Community development 2,735,948 - - 2,735,948
Non-departmental 1,166,154 - - 1,166,154
Capital outlay - 7,503,608 - 7,503,608
TOTAL EXPENDITURES 24,615,562 7,503,608 6,113,638 38,232,808
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,837,057 (7,199,826) 844,056 (518,713)
OTHER FINANCING SOURCES (USES):
Transfers in 230,000 4,526,000 287,500 5,043,500
Transfers out (4,813,500) - (230,000) (5,043,500)
TOTAL OTHER FINANCING SOURCES (USES)(4,583,500) 4,526,000 57,500 -
NET CHANGE IN FUND BALANCES 1,253,557 (2,673,826) 901,556 (518,713)
FUND BALANCES - BEGINNING OF YEAR 16,825,403 27,079,301 15,935,639 59,840,343
FUND BALANCES - END OF YEAR 18,078,960$ 24,405,475$ 16,837,195$ 59,321,630$
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2018
See accompanying notes to basic financial statements.
20 A-48
Net change in fund balances - total governmental funds (518,713)$
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the
cost of those assets is allocated over their estimated useful lives as depreciation expense, or are allocated
to the appropriate functional expense when the cost is below the capitalization threshold. Asset disposals
are also not recognized in the governmental funds. This activity is reconciled as follows:
Cost of assets capitalized 8,110,585
Depreciation expense (5,998,133)
Revenues in the Statement of Activities that do not provide current financial resources are not reported
as revenues in the funds.(104,506)
Increases in long-term notes receivable use current financial resources and are included in the expenditures
of governmental funds. Repayments of long-term notes receivable provide current financial resources and
are included in the revenues of governmental funds. These changes in notes receivable are not reflected in
the revenues or expenses of the Statement of Activities. This amount represents the net change in the
long-term notes receivable.104,921
Compensated absences expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.18,433
Governmental funds report pension contributions as expenditures. However, in the Statement of Activities,
pension expense is measured as the change in net pension liability and the amortization of deferred
outflows and inflows relate to pensions. This amount represents the net change in pension related amounts.(1,118,442)
Internal service funds are used by management to charge the costs of certain activities, including
equipment and building replacement and employee benefits, to individual funds. The net revenues/
(expenses) of the internal service funds are reported with governmental activities.(48,055)
Change in net position of governmental activities 446,090$
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 the year ended June 30, 2018
See accompanying notes to basic financial statements.
21 A-49
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 25,420,600$ 25,720,600$ 25,532,519$ (188,081)$
Licenses and permits 3,135,500 3,135,500 3,094,984 (40,516)
Revenue from other agencies - - 81,604 81,604
Charges for services 255,200 305,200 892,803 587,603
Fines and forfeitures 113,000 113,000 143,753 30,753
Use of money and property 83,300 83,300 206,893 123,593
Other revenues 653,000 423,000 500,063 77,063
TOTAL REVENUES 29,660,600 29,780,600 30,452,619 672,019
EXPENDITURES:
Administration
City council 128,600 128,598 107,304 21,294
City manager 840,100 871,463 872,496 (1,033)
Legal services 925,000 925,000 1,184,796 (259,796)
Community outreach 87,500 87,605 74,464 13,141
City clerk 679,600 679,600 595,565 84,035
RPV TV 229,000 263,095 203,700 59,395
Personnel 392,700 438,700 373,705 64,995
Finance 1,410,600 1,418,884 1,349,977 68,907
Information technology - Data 1,134,700 1,156,650 1,012,125 144,525
Information technology - Voice 95,000 103,000 93,139 9,861
Total Administration 5,922,800 6,072,595 5,867,271 205,324
Public safety
Sheriff 6,135,200 6,135,200 6,108,698 26,502
Special programs 825,500 1,848,491 1,028,470 820,021
Animal control 136,000 136,000 115,847 20,153
Emergency preparedness 189,300 189,300 145,800 43,500
Total Public Safety 7,286,000 8,308,991 7,398,815 910,176
Public Works
Public works administration 2,723,100 2,852,029 2,157,495 694,534
Traffic management 406,000 561,076 526,400 34,676
Storm water quality 586,100 683,116 310,929 372,187
Building maintenance 651,800 668,100 597,136 70,964
Park/Trail/Open Space maintenance 748,100 748,100 935,466 (187,366)
Street landscape Maintenance - - 425,073 (425,073)
Sewer maintenance 69,000 69,000 1,554 67,446
Total Public Works 5,184,100 5,581,421 4,954,053 627,368
(Continued)
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the year ended June 30, 2018
See accompanying notes to basic financial statements.
22 A-50
Variance with
Final Budget
Positive
Original Final Actual (Negative)
EXPENDITURES (CONTINUED):
Parks and Recreation
Recreation administration 1,193,000 1,214,291 1,042,368 171,923
Recreation facilities 750,300 757,125 680,026 77,099
Special events 236,700 236,700 193,923 42,777
PVIC 425,300 425,300 471,655 (46,355)
REACH 66,700 63,500 64,371 (871)
Support services 26,000 26,000 40,978 (14,978)
Total Parks and Recreation 2,698,000 2,722,916 2,493,321 229,595
Community Development
Planning services 1,609,900 1,627,867 1,235,352 392,515
Building & safety 969,100 991,211 791,008 200,203
Code enforcement 321,000 321,000 183,129 137,871
View restoration/preservation 357,000 357,000 394,011 (37,011)
NCCP - 75,000 16,870 58,130
Geology 150,000 150,000 115,578 34,422
Total Community Development 3,407,000 3,522,078 2,735,948 786,130
Non-departmental 1,106,400 1,214,510 1,166,154 48,356
TOTAL EXPENDITURES 25,604,300 27,422,511 24,615,562 2,806,949
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,056,300 2,358,089 5,837,057 (2,134,930)
OTHER FINANCING SOURCES (USES):
Transfers in 230,000 230,000 230,000 -
Transfers out (4,813,500) (4,813,500) (4,813,500) -
TOTAL OTHER FINANCING
SOURCES (USES) (4,583,500) (4,583,500) (4,583,500) -
NET CHANGE IN FUND BALANCE (527,200) (2,225,411) 1,253,557 (2,134,930)
FUND BALANCE - BEGINNING OF YEAR 16,825,403 16,825,403 16,825,403 -
FUND BALANCE - END OF YEAR 16,298,203$ 14,599,992$ 18,078,960$ (2,134,930)$
Budgeted Amounts
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, 2018
23 A-51
Business-type Equipment
Activity- Replacement
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
CURRENT ASSETS:
Cash and investments 1,029,409$ 2,549,309$
Receivables:
Interest 2,520 5,068
TOTAL CURRENT ASSETS 1,031,929 2,554,377
NONCURRENT ASSETS:
Capital assets, not being depreciated:
Land 1,428,243 -
Construction in progress 4,432,416 -
Capital assets, being depreciated:
Property and equipment 11,813 2,409,311
Infrastructure 32,494,609 -
Accumulated depreciation (3,370,683) (1,788,096)
TOTAL NONCURRENT ASSETS 34,996,398 621,215
TOTAL ASSETS 36,028,327 3,175,592
LIABILITIES:
Accounts payable and accrued liabilities 1,025,045 3,114
Retentions payable 134,495 -
TOTAL LIABILITIES 1,159,540 3,114
Invested in capital assets 34,996,398 621,215
Unrestricted (127,611) 2,551,263
TOTAL NET POSITION 34,868,787$ 3,172,478$
ASSETS
LIABILITIES
NET POSITION
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2018
See accompanying notes to basic financial statements.
24 A-52
Business-type Equipment
Activity Replacement
Water Quality Internal
Flood Protection Service
Enterprise Fund Funds
OPERATING REVENUES:
Charges for services -$ 410,877$
OPERATING EXPENSES:
Materials and supplies - 249,409
Maintenance 404,573 -
Depreciation 666,174 239,442
TOTAL OPERATING EXPENSES 1,070,747 488,851
OPERATING LOSS (1,070,747) (77,974)
NONOPERATING REVENUES:
Investment income 28,934 29,919
CHANGE IN NET POSITION (1,041,813) (48,055)
TOTAL NET POSITION - BEGINNING OF YEAR 35,910,600 3,220,533
TOTAL NET POSITION - END OF YEAR 34,868,787$ 3,172,478$
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION - PROPRIETARY FUNDS
For the year ended June 30, 2018
See accompanying notes to basic financial statements.
25 A-53
Business-type Equipment
Activity Replacement
Water Quality Internal
Flood Protection Service
Enterprise Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services provided -$ 410,877$
Payments to suppliers (441,812) (334,685)
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES (441,812) 76,192
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (3,326,986) (109,977)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments 32,493 29,919
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (3,736,305) (3,866)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 4,765,714 2,553,175
CASH AND CASH EQUIVALENTS - END OF YEAR 1,029,409$ 2,549,309$
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss (1,070,747)$ (77,974)$
Adjustments to reconcile operating loss
to net cash used by operating activities:
Depreciation 666,174 239,442
Changes in operating assets and liabilities:
Decrease in accounts payable and accrued liabilities (119,315) (85,276)
Increase in retentions payable 82,076 -
NET PROVIDED BY (USED FOR) OPERATING ACTIVITIES (441,812)$ 76,192$
SCHEDULE OF NON-CASH FINANCING ACTIVITIES:
Capital asset additions included in accounts payable 1,025,045$ -$
CITY OF RANCHO PALOS VERDES
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2018
See accompanying notes to basic financial statements.
26 A-54
Successor Agency
Private-Purpose
Trust Fund
Cash and investments 412,779$
Interest receivable 842
Prepaid costs 356,125
TOTAL ASSETS 769,746
LIABILITIES
CURRENT LIABILITIES:
Current portion of noncurrent liabilities 402,118
TOTAL CURRENT LIABILITIES 402,118
NONCURRENT LIABILITIES:
Due beyond one year 14,255,739
TOTAL NONCURRENT LIABILITIES 14,255,739
TOTAL LIABILITIES 14,657,857
NET POSITON (DEFICIT) HELD IN TRUST (13,888,111)$
ASSETS
STATEMENT OF FIDUCIARY NET POSITION
CITY OF RANCHO PALOS VERDES
FIDUCIARY FUND
June 30, 2018
See accompanying notes to basic financial statements.
27 A-55
Successor Agency
Private-Purpose
Trust Fund
ADDITIONS:
Taxes 457,250$
Use of money and property 5,208
TOTAL ADDITIONS 462,458
DEDUCTIONS:
Administration 41,045
Debt interest and fiscal charges 322,032
TOTAL DEDUCTIONS 363,077
CHANGE IN NET POSITION 99,381
NET POSITION (DEFICIT) - BEGINNING OF YEAR (13,987,492)
NET POSITION (DEFICIT) - END OF YEAR (13,888,111)$
CITY OF RANCHO PALOS VERDES
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the year ended June 30, 2018
See accompanying notes to basic financial statements.
28 A-56
NOTES TO THE BASIC FINANCIAL STATEMENTS
A-57
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-58
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
29
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 setting 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 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 City sponsored the formation of a Redevelopment Agency in 1984 pursuant to the State of California
Health and Safety Code Section 33000 entitled “Community Redevelopment Law” with a purpose to
finance long-term capital improvements designed to eliminate physical and economic blight in a project
area through stabilization of hazardous landslides. Effective February 1, 2012, pursuant to state law, the
Redevelopment Agency was dissolved and its assets were transferred to a Successor Agency for the
purpose of winding down the business of the former Redevelopment Agency (see Note 14). The Successor
Agency is a separate legal entity that is a related organization to the City; but is not a component unit, as
described more fully below.
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 former Redevelopment
Agency, and the County of Los Angeles (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 former Redevelopment Agency.
The City of Rancho Palos Verdes is the primary government unit. Component units are legally separate
organizations for which the elected officials of the primary government are financially accountable. In
addition, component units can be other organizations for which the nature and significance of their
relationship with the primary government are such that exclusion would cause the reporting entity’s
financial statements to be misleading. The City has accounted for the Authority as a “blended” component
unit. The balances and transactions of the Authority are reported in separate Permanent and Special
Revenue Funds; and are included in the government-wide statements.
The following specific criteria were used in determining that the Authority is a “blended” component unit.
The members of the City Council also act as members of the Authority Board.
The Authority is fiscally dependent on the City, and there is potential for the Authority to impose
specific financial burdens on the City; as the City subsidizes maintenance operations performed by
the Authority and the City is legally liable for facilities maintained by the Authority.
Separately issued financial statements for the Authority may be obtained at the City’s administrative
offices.
The Successor Agency does not meet the criteria for reporting as a component unit, as it is not fiscally
dependent on the City. In addition, the business of the Successor Agency must be approved by an
independently appointed Oversight Board and the California Department of Finance. Therefore, the
balances and transactions of the Successor Agency are reported as a separate Fiduciary Fund (private
purpose trust fund), and are not included in the government-wide statements.
A-59
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
30
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. Reporting Entity (Continued)
Participation in Public Entity Jointly Controlled Government
The City is a member of the Palos Verdes Peninsula Transit Joint Powers Authority (the Transit Authority).
The Transit Authority is comprised of three 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 Position. 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
pvtransit@palosverdes.com or mailing a request to P.O. Box 2656, Palos Verdes Peninsula, CA 90274.
B. 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, deferred outflows/inflows, 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. The financial resources accounted for in the General Fund may be used to fund any
City program.
Special Revenue Funds - Used to account for the proceeds of specific revenue sources that are restricted
by law or administrative action for specified purposes.
Capital Projects Funds - Used to account for financial resources used for the construction of specific
capital projects.
Permanent Funds - 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.
Proprietary Fund Types
Enterprise Fund - 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 centralize the accounting for purchases of equipment, furniture and
vehicles on behalf of all City departments, and the accumulation of funds for replacement of certain
buildings on behalf of the City.
A-60
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
31
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Description of Funds (Continued)
Fiduciary Fund Type
Private-Purpose Trust Fund - Used to account for property tax revenue allocated to the Successor Agency
and payments of the obligations of the former Redevelopment Agency.
C. Basis of Accounting/Measurement Focus
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a “Statement of Net Position” and a
“Statement of Activities”. These two statements present summaries of Governmental and Business-type
Activities for the City; and do not include fiduciary activities. These statements are presented on an
“economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the
City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources; including
capital assets, infrastructure, and long-term debt, are included in the accompanying Statement of Net
Position. The Statement of Activities presents changes in net position. 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 inter-fund activity has been eliminated from
the Government-Wide Financial Statements.
Governmental Fund Financial Statements
Governmental fund financial statements include a “Balance She et - 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 Position presented in the Government-Wide
Financial Statements.
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 Capital Improvement Capital Projects Fund is used to account for funds used for the City’s capital
improvement projects.
A-61
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
32
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting/Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
All governmental funds are accounted for on a spending or “current financial resources” measurement
focus and the modified accrual basis of accounting. Under the “current financial resources” measurement
focus, generally only current assets, current liabilities and deferred inflows are reported 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 unearned revenues. Expenditures are recorded when the fund liability is incurred, if
measurable, except for interest on general long-term debt that has not yet matured, which is recognized
when due.
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 noncurrent) associated
with the activity are included on the balance sheet. Fund equity is presented as total net position. The
operating statement of proprietary funds presents increases (revenues) and decreases (expenses) in total
net position. 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 an internal service fund to finance and account for goods and services provided by one City
department to other City departments, including the purchase and maintenance of equipment. The City’s
internal service fund is 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 fund is consolidated into the governmental activities column when presented in the government-
wide financial statements. To the extent possible, the cost of these services is reported in the appropriate
functional activity (administration, public safety, public works, etc.).
A-62
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
33
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting/Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
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.
Fiduciary Fund Financial Statements
The fiduciary private-purpose trust fund type is accounted for using the economic resources measurement
focus and accrual basis of accounting similar to the proprietary funds.
The City reports the following fiduciary fund.
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency
as part of the business of redevelopment dissolution. The Successor Agency private-purpose trust fund
accounts for the changes in the former Redevelopment Agency’s assets and liabilities until they are
disposed of through dissolution. This fund also accounts for the administrative costs associated with
dissolution.
D. Budgetary Accounting
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America for all governmental funds. All annual appropriations lapse at fiscal year-end.
Budget control is maintained over all accounts, and expenditures are not allowed to exceed appropriations
at the program level. Throughout the year, the City Council made several budgetary adjustments to the
General fund, Special Revenue funds, Capital Projects funds, and Permanent funds.
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 allowed appropriations, the excess must either be refunded to the State Controller, 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 following year. For the fiscal year ended June 30, 2018, based on calculations by
City Management, the proceeds of taxes in the amount of $26.3 million did not exceed appropriation limit
of $28.9 million.
A-63
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
34
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Capital Assets
Capital assets include land, construction in progress, building and improvements, vehicles, computer
equipment, furniture, fixtures and equipment, and infrastructure assets (street systems, storm drains, sewer
systems, etc.). 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 acquisition 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 25 to 50 years
Vehicles, Computers, and Equipment 3 to 10 years
Infrastructure Assets
Roadway Network 10 to 100 years
Sewer Network 25 to 50 years
Storm Drain Network 30 to 100 years
Parks and Recreation Network 25 years
F. Employee Compensated Absences
City employees may receive from 10 to 20 days of 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.
City employees accrue 96 hours of sick leave each year with a maximum accrual of 720 hours. However,
unused sick leave is never paid out to the employee upon separation; and therefore, the City does not
accrue a liability.
The General Fund will primarily be used to liquidate the liability for compensated absences in future
years. Any liability for compensated absences is only carried in the General Fund if there is unused/unpaid
leave outstanding following an employee’s separation.
G. Investments
Investments are reported at fair value which is the amount at which financial instruments could be
exchanged in a current transaction between willing parties. All fair values are determined by external
consultants. Investments are measured at fair value on a recurring basis. Recurring fair value
measurements are those that Governmental Accounting Standards Board (GASB) Statements require or
permit in the statement of net position at the end of each reporting period. Fair value measurements are
categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted
prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active
markets (significant other observable inputs); Level 3 inputs are significant unobservable inputs.
A-64
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
35
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Cash and Investments
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.
I. 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 9. The CJPIA is a public entity risk pool. The City records
amounts deposited with CJPIA as insurance expenditures in the General Fund.
J. 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 reported as
non-spendable. The City had a total of $887,945 of prepaid items as of June 30, 2018.
K. 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 affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
L. 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. When unrestricted resources (committed, assigned or unassigned) are available for use, it
is the City’s policy to use committed resources first, assigned resources second and finally unassigned
resources.
M. Deferred Inflows and Outflows
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period and will not be recognized as an
outflow of resources (expense/expenditure) until that time. The City has the following items that qualify
for reporting in this category:
Deferred outflows related to pensions equal to employer contributions made after the measurement
date of the net pension liability.
A-65
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
36
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. Deferred Inflows and Outflows (Continued)
Deferred outflows related to pensions for the changes in proportion and differences between employer
contributions and the employer’s proportionate share of contributions. These amounts are amortized
over a closed period equal to the average of the expected remaining service lives of all employees
that are provided with pensions through the plans.
Deferred outflows related to pensions resulting from the net difference between projected and actual
earnings on investments of the pension plans fiduciary net position. These amounts are amortized
over five years.
Deferred outflows related to pensions for differences between actual and expected experiences. These
amounts are amortized over a closed period equal to the average of the expected remaining service
lives of all employees that are provided with pensions through the plans.
Deferred outflows from pensions resulting from changes in assumptions. These amounts are
amortized over a closed period equal to the average expected remaining service lives of all employees
that are provided with pensions through the plans.
In addition to liabilities, the statement of net position and the governmental funds balance sheet will
sometimes report a separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that applies to a future
period and will not be recognized as an inflow of resources (revenue) until that time. The City has the
following items that qualify for reporting in this category:
Deferred inflows from unavailable revenues, which are reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenues from one source: grants. These
amounts are deferred and recognized as an inflow of resources in the period that the amounts become
available.
Deferred inflows related to pensions for the changes in proportion and differences between employer
contributions and the employer’s proportionate share of contributions. These amounts are amortized
over a closed period equal to the average of the expected remaining service lives of all employees
that are provided with pensions through the plans.
Deferred inflows related to pensions for differences between actual and expected experiences. These
amounts are amortized over a closed period equal to the average of the expected remaining service
lives of all employees that are provided with pensions through the plans.
Deferred inflows from pensions resulting from changes in assumptions. These amounts are amortized
over a closed period equal to the average expected remaining service lives of all employees that are
provided with pensions through the plans.
A-66
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
37
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. Current Accounting Pronouncements
GASB 75 - Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,
effective for periods beginning after June 15, 2017. This accounting pronouncement did not impact the
City.
GASB 82 - Pension Issues, effective for periods beginning after June 15, 2016, except for certain
provisions on selection of assumptions, which are effective in the first reporting period in which the
measurement date of the pension liability is on or after June 15, 2017. This accounting pronouncement
did not impact the City.
GASB 85 - Omnibus 2017, effective for periods beginning after June 15, 2017. This accounting
pronouncement did not impact the City.
GASB 86 - Certain Debt Extinguishment Issues, effective for periods beginning after June 15, 2017. This
accounting pronouncement did not impact the City.
O. Future Accounting Pronouncements
GASB has issued the following statements, which may impact the City’s financial reporting requirements
in the future:
GASB 83 - Certain Asset Retirement Obligations, effective for periods beginning after June 15, 2018.
GASB 84 - Fiduciary Activities, effective for periods beginning after December 15, 2018.
GASB 87 - Leases, effective for periods beginning after December 15, 2019.
GASB 88 - Certain Disclosures Related to Debt, Including Direct Borrowings and Direct
Placements, effective for periods beginning after June 15, 2018.
GASB 89 - Accounting for Interest Cost Incurred before the End of a Construction Period, effective
for periods beginning after December 15, 2019.
GASB 90 - Majority Equity Interests – an amendment of GASB Statements No. 14 and No. 61,
effective for periods beginning after December 15, 2018.
P. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the City’s California Public
Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’
fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this
purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
A-67
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
38
2. CASH AND INVESTMENTS
Cash and investments as of June 30, 2018, are classified in the accompanying financial statements as follows:
Government-Wide Fiduciary Fund
Statement of Statement of Fiduciary
Net Position Net Position Total
Total cash and investments 64,099,366$ 412,779$ 64,512,145$
Cash and investments as of June 30, 2018 consist of the following:
Petty Cash 3,000$
Deposits with Financial Institutions 5,143,684
Certificates of Deposit 17,950,000
Money Market Funds 662,360
Negotiable Certificates of Deposit 4,104,565
Local Agency Investment Fund (LAIF)36,648,536
64,512,145$
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, where more
restrictive) that address interest rate risk, and concentration of credit risk.
Maximum
Amount or
Maximum Percent of Maximum
Authorized Investment Type Maturity Portfolio in One Issuer
U.S. Treasury Obligations 3 years None None
Certificates of Deposit 5 years 30% None
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 7 days 15% None
Money Market Mutual Funds N/A 15% None
Local Agency Investment Fund (LAIF) N/A None $65 million per acct.
Money Market Savings/Demand Deposits N/A 15% $5 million
A-68
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
39
2. CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect fair value of an
investment. Generally, the longer the maturity of an investment, there is a greater sensitivity of its fair value
to changes in market interest rates. The City manages its exposure to interest rate risk by investing with the
Local Agency Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity need for
operations. The City’s investment is represented by shares in the pool, which can be withdrawn in one business
day. The average maturity of the pool is less than one year.
Remaining
Maturity
Investment Type 0-6 months 6-12 months 12-36 months 36-60 months Total
Certificates of Deposit -$ 1,500,000$ 8,450,000$ 8,000,000$ 17,950,000$
Money Market Funds 662,360 - - - 662,360
Negotiable Certificates of Deposit - - 4,104,565 - 4,104,565
Local Agency Investment Fund (LAIF) 36,648,536 - - - 36,648,536
Total 37,310,896$ 1,500,000$ 12,554,565$ 8,000,000$ 59,365,461$
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 certificates of deposit, negotiable certificates of deposit, and LAIF are not rated. The money
market funds are rated AAA.
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 any one issuer beyond that stipulated by the California Government Code.
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 investment 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.
A-69
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
40
2. CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk (Continued)
The City’s deposits with financial institutions in excess of federal depository insurance limits were held in
collateralized accounts, but not in the name of the City. The financial institutions that held the uninsured
deposits are legally required by the California Government Code to collateralize the City’s deposits as noted
above.
Investment in Local Agency Investment Fund (LAIF)
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 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.
Fair Value Classifications
The City categorized its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value
of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted
prices for similar assets in active markets (significant other observable inputs, Level 3 inputs are significant
unobservable inputs.
The fair value of the City’s investments in negotiable certificates of deposits is based on Level 2 inputs. The
City’s investments in money market funds and LAIF are not subject to the fair value hierarchy.
A-70
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
41
3. INTERFUND TRANSACTIONS
Interfund Receivable/Payable
At June 30, 2018, $80,771 was owed to the General Fund to temporarily cover grant expenditures in the
nonmajor Bikeways Special Revenue Fund, until reimbursement is received from the granting agency.
lnterfund Transfers
lnterfund transfers for the year ended June 30, 2018, consisted of the following:
Other
General Governmental
Fund Funds Totals
General Fund -$ 230,000$ 230,000$
Capital Improvement Projects 4,526,000 - 4,526,000
Other Governmental Funds 287,500 - 287,500
Totals 4,813,500$ 230,000$ 5,043,500$
Transfer From
Transfer To
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; 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; and 3) return money that was originally transferred from the General Fund to another
fund, yet not used.
The General Fund transferred a total of $4,813,500. Of this amount, $4,526,000 was transferred to the Capital
Improvement Projects (CIP) Fund as a CIP Reserve for future infrastructure projects, as required by the City
Council’s Reserve Policy. The amount of $246,000 was transferred to the Improvement Authority Abalone
Cove for $38,000 and Abalone Cove Sewer District for $208,000 to fund the City’s sewer system maintenance
contribution. The remaining balance of $41,500 was transferred to the Sub-region One Maintenance for future
projects. The General Fund received $230,000 during the year. Of this amount, $140,000 was transferred from
the Public Safety Grants Fund to supplement the special community resource policing team for the deputy
cost within the Sherriff program of the public safety section of the budget and another $90,000 was transferred
from the Measure A Maintenance Fund to fund Parks, Trails, and Open Space Maintenance within the General
Fund for fuel modification in the Open Space areas.
A-71
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
42
4. CAPITAL ASSETS AND DEPRECIATION
The City has reported all capital assets including infrastructure in the Government-Wide Statement of Net
Position. The City elected to use the basic reporting approach as defined by GASB Statement No. 34 for all
infrastructures, whereby depreciation expense and accumulated depreciation has been recorded. The
following tables present the capital assets activity for the year ended June 30, 2018.
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital assets not being depreciated:
Land 42,087,575$ -$ -$ 42,087,575$
Construction in progress 3,346,800 8,157,791 (9,857,765) 1,646,826
Total capital assets not
being depreciated 45,434,375 8,157,791 (9,857,765) 43,734,401
Capital assets being depreciated:
Building and improvements 13,442,873 104,336 - 13,547,209
Vehicles 433,572 77,988 - 511,560
Computer equipment 994,501 - (5,350) 989,151
Furniture, fixtures and equipment 876,611 31,989 - 908,600
Infrastructure - - -
Roadway system 108,073,786 8,830,933 - 116,904,719
Sewer system 25,965,995 - - 25,965,995
Storm drain system 13,148,416 511,906 - 13,660,322
Parks system 6,371,095 363,384 - 6,734,479
Total capital assets
being depreciated 169,306,849 9,920,536 (5,350) 179,222,035
Less accumulated depreciation for:
Buildings and improvements (6,556,446) (247,403) - (6,803,849)
Vehicles (320,784) (45,378) - (366,162)
Computer equipment (720,991) (91,184) 5,350 (806,825)
Furniture, fixtures and equipment (512,229) (97,530) - (609,759)
Infrastructure - - -
Roadway system (56,725,123) (4,784,450) - (61,509,573)
Sewer system (20,120,410) (454,046) - (20,574,456)
Storm drain system (4,454,800) (266,483) - (4,721,283)
Parks system (1,893,014) (251,101) - (2,144,115)
Total accumulated depreciation (91,303,797) (6,237,575) 5,350 (97,536,022)
Total capital assets
being depreciated, net 78,003,052 3,682,961 - 81,686,013
Governmental activities
capital assets, net 123,437,427$ 11,840,752$ (9,857,765)$ 125,420,414$
A-72
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
43
4. CAPITAL ASSETS AND DEPRECIATION (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
Administration (depreciation of buildings)247,403$
Public Works (depreciation of roadways, sewers, and storm drains)5,499,629
Parks and recreation (depreciation of parks system)251,101
Capital assets held by the City's internal service funds are charged
to various functions based on their usage of the assets 239,442
Total Depreciation Expense - Governmental Activities 6,237,575$
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital assets not being depreciated:
Land 1,428,243$ -$ -$ 1,428,243$
Construction in progress 774,418 4,352,031 (694,033) 4,432,416
Total capital assets not
being depreciated 2,202,661 4,352,031 (694,033) 5,860,659
Capital assets being depreciated:
Equipment 11,813 - - 11,813
Storm drain system 31,800,576 694,033 - 32,494,609
Total capital assets
being depreciated 31,812,389 694,033 - 32,506,422
Less accumulated depreciation for:
Equipment (11,813) - - (11,813)
Storm drain system (2,692,696) (666,174) - (3,358,870)
Total accumulated depreciation (2,704,509) (666,174) - (3,370,683)
Total capital assets
being depreciated, net 29,107,880 27,859 - 29,135,739
Business-type activities
capital assets, net 31,310,541$ 4,379,890$ (694,033)$ 34,996,398$
Depreciation expense of $666,174 is included in the Water Quality Flood Protection enterprise fund.
A-73
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
44
5. NOTES RECEIVABLE
Notes
Receivable
Affordable Housing 7,779,371$
Community Development Block Grant 346,466
Subtotal 8,125,837
Receivable from Successor Agency 10,612,857
Allowance from Successor Agency receivable (10,612,857)
Total Notes Receivable 8,125,837$
The receivable from the Successor Agency is discussed further in Note 14.
Affordable Housing
In March 2009, the former Redevelopment Agency (RDA) entered into a Disposition and Development
Agreement (DDA) with AMCAL Mirandela Fund LP (AMCAL). Under the DDA, the former RDA provided
financial assistance to AMCAL in an amount up to $6,790,000 to develop a thirty-four unit senior housing
project. The loan accrues simple interest at a rate of 3% per annum on the amounts disbursed. The note is due
December 22, 2065. The balance of note receivable from AMCAL including accrued unpaid interest of
$1,509,084 at June 30, 2018 was $7,779,371.
In March 2011, the former RDA sold an affordable housing condominium to an individual for $350,000. In
connection with the sale, the buyer issued a secured promissory note in the amount of $126,320. The note
bears no interest and principal is payable upon default by the owner (or any successors’ owner) under a
regulatory agreement that requires the condominium to be occupied by person or families of moderate income.
If no such default has occurred by February 22, 2056, the principal will be forgiven. Due to the nature of this
loan, the outstanding balance has been offset in full by an allowance for uncollectability.
As part of redevelopment dissolution, these two long-term notes receivable were transferred to the housing
successor (the City), which elected to retain the housing assets and function of the former Redevelopment
Agency.
Community Development Block Grant (CDBG)
As part of the City’s CDBG program, the City extends loans to property owners meeting low and moderate
income requirements to make repairs and improvements to their homes. These notes receivable bear no
interest, and repayment is required when the title to the property is transferred or the property is re-financed.
The maximum loan amount per property is $13,000. Amounts repaid are returned to the CDBG program. The
total of these loans outstanding at June 30, 2018 is $346,466.
A-74
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
45
6. LONG-TERM LIABILITIES
Balance Balance Amount Due
July 1, 2017 Additions Deletions June 30, 2018 in One Year
Employee Compensated Absences 442,682$ 342,596$ (361,029)$ 424,249$ 345,996$
Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences. Based on historical trends, $345,996
is estimated to be the amount that will be used and/or paid out during the fiscal year ended June 30, 2019.
7. CLASSIFICATIONS OF NET POSITION AND FUND BALANCE
Government-Wide Financial Statements
In the Government-Wide financial statements net position is classified in the following categories:
Net Investment in Capital Assets
This category groups all capital assets, including infrastructure, into one component of net position.
Accumulated depreciation on these assets reduces this category as does any outstanding balance on debt
incurred in acquiring or constructing the capital assets.
Restricted Net Position
This category presents external restrictions imposed by creditors, grantors, contributions or laws or regulations
of other governments and restrictions imposed by law through constitutional provisions or enabling
legislation.
Unrestricted Net Position
This category represents the difference between total net position and the two categories noted above: Net
Investment in Capital Assets and Restricted Net Position.
Fund Financial Statements
The fund balances reported on the fund statements consist of the following categories:
Non-spendable - Amounts that are not in a spendable form (such as inventory and prepaid expenditures) or
are legally required to be maintained intact (such as the corpus of an endowment fund).
Restricted - Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and
higher levels of government), through constitutional provisions, or by enabling legislation.
Committed - Amounts constrained to specific purposes by the City Council via a City Council resolution or
ordinance, which are considered to be equally binding. To be reported as committed, amounts cannot be used
for any other purpose unless the City Council adopts another resolution to remove or change the constraint.
Assigned - Amounts the City Council intends to use for a specific purpose, which is expressed by the City
Council via minute order.
A-75
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
46
7. CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED)
Fund Financial Statements (Continued)
Unassigned - Amounts that are available for any purpose; these amounts are reported only in the General
Fund. However, if there is a deficit fund balance to be reported in any fund, it is classified as unassigned.
The City’s governmental fund balances were classified as follows at June 30, 2018:
Capital Other
General Improvement Governmental
Fund Fund Funds
Nonspendable:
In Form (inventory and prepaid)913,399 -$ -$
Legally - - 1,750,000
Habitat Restoration - - 138,813
Restricted:
Public Works - 1,438,421 13,973,086
Committed:
Public Works 129,954 - -
City Administration 14,963 - -
Public Safety 539,934 - -
Community Development 28,913 - -
Recreation and Parks 1,400 - -
Assigned:
Public Works - 21,673,517 -
Community Development - - 975,296
Continued Appropriations - 1,293,537 -
Unassigned:
Unrestricted Fund Balance 16,150,397 - -
Continued Appropriations 300,000 - -
Governmental Fund Balance Totals 18,078,960$ 24,405,475$ 16,837,195$
Non-Spendable Fund Balance
General Fund assets include $25,454 of inventory held for resale at the Point Vicente Interpretive Center gift
shop, and $887,945 of prepayments for expenditures related to the fiscal year ended June 30, 2019.
The fund balance of the Improvement Authority’s Abalone Cove Fund includes a $1,000,000 non-spendable
fund balance, as required by a Reimbursement and Settlement Agreement dated October 27, 1987 in
connection with the Horan Lawsuit (discussed further in Note 14).
The fund balance of the Subregion One Maintenance Fund includes a $750,000 non-spendable endowment,
as required by the developer agreement for the Subregion One tract.
A-76
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
47
7. CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED)
Non-Spendable Fund Balance (Continued)
Beginning with the fiscal year ended June 30, 2006, the City’s Natural Communities Conservation Plan
requires an endowment in the Habitat Restoration Fund to be funded at the rate of $10,000 annually (plus
interest) for fifty (50) years, to provide for maintenance of habitat in the future. The balance of $138,813
represents 11 years of annual $10,000 contributions plus interest earnings.
Restricted Fund Balance
The balances of the City’s Special Revenue Funds, including California Highway User Tax apportionments
in the Gas Tax Fund, are constrained to use for specific purposes by other governmental agencies.
The $1,438,421 balance of the Capital Improvement Fund is restricted for ongoing improvements for streets,
building, parks, trails and open space, and Portuguese Bend’s dewatering wells project.
The $378,754 balance of the Beautification Fund has been restricted for beautification projects within the
City’s right-of-way, as well as the promotion of recycling and beautification programs.
Committed Fund Balance
The $715,164 balance of the General Fund is committed for ongoing projects approved by the City Council.
These projects can only be redesignated to other projects by City Council.
Assigned Fund Balance
The $22,967,054 balance of the Capital Improvement Projects Fund has been assigned for the planning, design
and construction of infrastructure projects.
Balances totaling $975,296 within the Low-Moderate Income Housing Fund and the Affordable Housing In-
Lieu Fund have been assigned for the provision of affordable housing within the City.
Unassigned Fund Balance
City Council Policy No. 41 - Reserve Policies, adopted via resolution, requires the City to maintain a minimum
General Fund balance of at least fifty percent of annual operating expenditures. This reserve serves as a Rainy
Day Fund with a balance of $16,150,397 at June 30, 2018.
City Council approved to carry forward $300,000 of FY 2017-18 General Fund appropriations to FY 2018-19.
A-77
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
48
7. CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED)
Statement of Net Position
The Net Position of the City’s governmental activities at June 30, 2018 includes restricted amounts totaling
$17,300,320. The restrictions are itemized in the following table, and are noted above, in the discussion of
governmental fund balances.
Improvement Authority non-spendable balance 1,000,000$
Subregion One maintenance non-spendable endowment 750,000
Natural Communities Conservation Plan non-spendable endowment 138,813
Capital Improvement Fund 1,438,421
Other Governmental Funds restricted balances 13,973,086
Total Restricted portion of Net Position 17,300,320$
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS
Pension Plan Description
All qualified permanent and probationary employees are eligible to participate in the City of Rancho
Palos Verdes Employee Pension Plan, a cost-sharing multiple-employer defined benefit pension plan
administered by the California Public Employees Retirement System (CalPERS). The CalPERS Plan consists
of a miscellaneous pool and a safety pool (referred to as “risk pools”), which are comprised of individual
employer miscellaneous and safety rate plans, respectively. The risk pools are included within the Public
Employees’ Retirement Fund C (PERF C). Benefit provisions under the Plan are established by State statute
and may be amended by City resolution. CalPERS issues publicly available reports that include a full
description of the pension plans regarding benefit provision, assumption and membership information. Copies
of the reports can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full time employment. Members with five years of total service are
eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability
benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957
Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan
are applied as specified by the Public Employees’ Retirement Law.
The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member
contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA
members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS
Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations.
A-78
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
49
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Benefits Provided (Continued)
The Plan’s provisions and benefits in effect at June 30, 2018, are summarized in the following table.
Classic Tier 1 Classic Tier 2 New Members
Prior to Prior to On or after
Hire Date January 1, 2013 October 2, 2012 January 1, 2013
Formula 2.5% at 55 2.0% at 60 2.0% at 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 55 60 62
Monthly benefits, as a % of annual salary 2.50%2.00%2.00%
Required employee contribution rates 8%7%6.25%
Required employer contributions rates;
Normal cost rate 10.110%7.200%6.533%
Payment of unfunded liability 495,784$ 198$ 526$
Miscellaneous
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 1 following notice of a change in the rate. Funding contributions for the Miscellaneous
Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate
is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with
an additional amount to finance any unfunded accrued liability. The City is required to contribute the
difference between the actuarially determined rate and the contribution rate of employees. Contributions to
the pension plan from the City were $999,670 for the year ended June 30, 2018.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
The City reported a net pension liability for its proportionate share of the net pension liability of the
Miscellaneous Plan as of June 30, 2018, in the amount of $11,124,689.
The City’s net pension liability for the Miscellaneous Plan is measured as the proportionate share of the net
pension liability of the collective cost-sharing plan. The City’s net pension liability of the Plan is measured as
of June 30, 2017, and the total pension liability for the Miscellaneous Plan used to calculate the net pension
liability was determined by an actuarial valuation as of June 30, 2016, rolled forward to June 30, 2017, using
standard update procedures. The City’s proportion of the net pension liability was based on a projection of the
City’s long-term share of contributions to the pension plans relative to the projected contributions of all
participating employers, actuarially determined. The City’s proportionate share of the net pension liability for
the Miscellaneous Plan as of the June 30, 2016 and 2017 measurement dates was as follows:
Proportion - June 30, 2016 0.11120%
Proportion - June 30, 2017 0.11218%
Change - Increase ( Decrease)-0.00098%
A-79
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
50
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
For the year ended June 30, 2018, the City recognized pension expense of $2,103,644. At June 30, 2018, the
City reported deferred outflows of resources and deferred inflows of resources related to pension from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
City contributions subsequent to the measurement date 990,670$ -$
Changes in proportion and differences between employer
contributions and employer's proportionate share of contributions 188,106 (18,067)
Net difference between projected and actual earnings on pension
plan investments 378,359 -
Differences between expected and actual experience 13,483 (193,176)
Change of assumptions 1,672,979 (127,566)
Total 3,243,597$ (338,809)$
The amount of $990,670 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30,
2018. Other amounts reported as deferred outflows of resources and deferred inflows or resources related to
pensions will be recognized as pension expense as follows:
Year Ended June 30,
2019 584,024$
2020 969,412
2021 585,319
2022 (224,637)
1,914,118$
A-80
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
51
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Actuarial Assumptions
The total pension liability was based on the following actuarial methods and assumptions:
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.75%
Salary Increases (1)
Mortality Rate Table (2)
Post Retirement Benefit Increase (3)
(1) Varies by entry age and service
(2)
(3)
The mortality table used was developed based on CalPERS-specific data. The table includes
20 years of mortality improvements using Society of Actuaries Scale BB. For more details on
this table, please refer to the April 2014 experience study report (based onCalPERS
demographic data from 1997 to 2011) available on the CalPERS website.
Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on
Purchasing Power applies, 2.75% thereafter.
All other actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial
experience study for the period from 1997 to 2011, including updates to salary increase, mortality and
retirement rates. The Experience Study report can be obtained at the CalPERS website under Forms and
Publications.
Change of Assumptions
In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred
outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized
portion of this assumption change and the unamortized portion of the changes of assumptions related to prior
measurement periods.
A-81
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
52
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Discount Rate (Continued)
The discount rate used to measure the total pension liability was 7.15% for each Plan and reflects the long-
term expected rate of return for the each Plan net of investment expenses and without reduction for
administrative expenses. To determine whether the municipal bond rate should be used in the calculation of a
discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that
would be different from the actuarially assumed discount rate. Based on the testing of the Plans, the tests
revealed the assets would not run out. Therefore, the current 7.15% discount rate is appropriate and the use of
the municipal bond rate calculation is not deemed necessary. The long term expected discount rate of 7.15%
is applied to all plans in the Public Employees Retirement Fund (PERF). The cash flows used in the testing
were developed assuming that both members and employers will make their required contributions on time
and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB
Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment expense
and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into
account historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the
agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns
were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block
approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits
was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent
expected return that arrived at the same present value of benefits for cash flows as the one calculated using
both short-term and long-term returns. The expected rate of return was then set equivalent to the single
equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
The target allocation shown was adopted by the CalPERS Board effective on July 1, 2014.
A-82
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
53
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Discount Rate (Continued)
(1) Real (2) Rate
Target Return Return
Allocation Years 1-10 Years 11+
Global Equity 47.00% 4.90% 5.38%
Global Fixed Income 19.00% 0.80% 2.27%
Inflation Sensitive 6.00% 0.60% 1.39%
Private Equity 12.00% 0.60% 6.63%
Real Estate 11.00% 2.80% 5.21%
Infrastructure and Forestland 3.00% 3.90% 5.36%
Liquidity 2.00% -0.40% -0.90%
Total 100.00%
(1) An expected inflation of 2.5% used for this period.
(2) An expected inflation of 3.0% used for this period.
Asset Class
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability for each Plan, calculated
using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point
higher than the current rate:
Discount Rate -1%Current Discount Rate Discount Rate +1%
(6.15%)(7.15%)(8.15%)
16,639,305$ 11,124,689$ 6,557,385$
Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in a separately issued CalPERS
financial report.
A-83
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
54
8. 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
administration 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 the fiscal year ended June 30, 2018, the City
contributed a total of $82,081 to employee accounts.
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 General Fund in the City’s financial statements.
9. LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Rancho Palos Verdes is a member of the CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (Authority). The Authority is composed of 116 California public entities and is organized under
a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority
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 lines of coverage. The
California JPIA began covering claims of its members in 1978. Each member 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
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment
is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and
forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary
self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on
payroll and claims history, relative to other members of the risk-sharing pool. Additional information
regarding the cost allocation methodology is provided below.
A-84
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
55
9. LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE (CONTINUED)
General Liability
In the liability program claims are pooled separately between police and general government exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility
factor is determined for each member, which establishes the weight applied to payroll and the weight applied
to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The
second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated
as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to
$50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2017-18 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to $20 million,
and excess insurance to $50 million. The Authority’s reinsurance contracts are subject to the following
additional pooled retentions: (a) $2.5 million annual aggregate deductible in the $3 million excess of
$2 million layer, (b) $3 million excess of $2 million layer, and (c) $2.5 million annual aggregate deductible in
the $5 million excess of $5 million layer.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.
Costs of covered claims for subsidence losses have a sub-limit of $30 million per occurrence.
Workers’ Compensation
In the workers’ compensation program claims are pooled separately between public safety (police and fire)
and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of
other members. A variable credibility factor is determined for each member, which establishes the weight
applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes
incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred
costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000
for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer.
(4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation
within the first and second loss layers.
For 2017-18, the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits
under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million
is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million
are pooled among members.
Purchased Insurance
Pollution Legal Liability Insurance
The City of Rancho Palos Verdes participates in the pollution legal liability insurance program which is
available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets,
and storm drains owned by the City of Rancho Palos Verdes. Coverage is on a claims-made basis. There is a
$50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2017 through
July 1, 2020. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy.
A-85
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
56
9. LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE (CONTINUED)
Property Insurance
The City of Rancho Palos Verdes participates in the all-risk property protection program of the Authority. This
insurance protection is underwritten by several insurance companies. City of Rancho Palos Verdes property
is currently insured according to a schedule of covered property submitted by the City of Rancho Palos Verdes
to the Authority. City of Rancho Palos Verdes property currently has all-risk property insurance protection in
the amount of $15,901,320. There is a $10,000 deductible per occurrence except for non-emergency vehicle
insurance which has a $2,500 deductible. Premiums for the coverage are paid annually and are not subject to
retrospective adjustments.
Earthquake and Flood Insurance
The City of Rancho Palos Verdes purchases earthquake and flood insurance on a portion of its property. The
earthquake insurance is part of the property protection insurance program of the Authority. City of Rancho
Palos Verdes property currently has earthquake protection in the amount of $15,623,540. There is a deductible
of 5% per unit of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually
and are not subject to retrospective adjustments.
Crime Insurance
The City of Rancho Palos Verdes purchases crime insurance coverage in the amount of $1,000,000 with a
$2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and
are not subject to retrospective adjustments.
Special Event Tenant User Liability Insurance
The City of Rancho Palos Verdes further protects against liability damages by requiring tenant users of certain
property to purchase low-cost tenant user liability insurance for certain activities on agency property. The
insurance premium is paid by the tenant user and is paid to the City of Rancho Palos Verdes according to a
schedule. The City of Rancho Palos Verdes then pays for the insurance. The insurance is arranged by the
Authority.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or
judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or
insured liability coverage in 2017-18.
10. CONTINGENCIES AND COMMITMENTS
Litigation
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 9) 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.
A-86
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
57
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 January 1
Levy date June 30
Due date November 1 and February 1
Collection dates December 10 and April 10
12. UNAVAILABLE REVENUES
The unavailable revenues in the fund financial statements of the City of Rancho Palos Verdes as of
June 30, 2018 are presented in the following table.
Revenue Measurable but Not Available (beyond 60 days):
General Fund 28,237$
Other Governmental Funds 85,112
Total Unavailable Revenues 113,349$
13. OTHER REQUIRED FUND DISCLOSURES
The following budget program had expenditures in excess of the budget for the year ended June 30, 2018, as
follows:
Program Budget Expenditures Excess
General Fund:
City Manager 871,463$ 872,496$ 1,033$
Legal Services 925,000 1,184,796 259,796
Park/Trail/Open Space maintenance 748,100 935,466 187,366
Street landscape Maintenance - 425,073 425,073
Point Vicente Interpretive Center 425,300 471,655 46,355
REACH 63,500 64,371 871
Support services 26,000 40,978 14,978
View restoration/preservation 357,000 394,011 37,011
Proposition A Special Revenue Fund:
Public works 957,678 1,126,777 169,099
CDBG Special Revenue Fund:
Public works 148,355 194,556 46,201
A-87
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
58
14. SUCCESSOR AGENCY
Under the Dissolution Act, each California redevelopment agency (each a “Dissolved RDA”) was dissolved
as of February 1, 2012. A Successor Agency was created for each Dissolved RDA which is the sponsoring
community of the Dissolved RDA unless it elected not to serve as the Successor Agency. On September 6,
2011, the City elected to serve as the Successor Agency of the Rancho Palos Verdes Redevelopment Agency.
Non-Liquid Assets
Prior to redevelopment dissolution, the County of Los Angeles pursuant to a Memorandum of Understanding
dated November 1, 1997 (discussed below) impounded property tax increment allocated to the former
redevelopment agency for payment of debt owed to the County. The balance of the impounded tax increment
not yet applied to debt at June 30, 2018 is $356,125.
Debt Summary
Balance Balance Amounts Due
July 1, 2017 Additions Deletions June 30, 2018 in One Year
Due to City:
Portuguese Bend 7,066,888$ 120,059$ (47,078)$ 7,139,869$ 98,975$
Abalone Cove 3,431,939 67,530 (26,481) 3,472,988 48,143
Due to County:
Tax Increment Bond 4,275,000 - (230,000) 4,045,000 255,000
Totals 14,773,827$ 187,589$ (303,559)$ 14,657,857$ 402,118$
Consolidated Loan from City
The City entered into an agreement to provide the former Redevelopment Agency (RDA) operating funds and
staff assistance, supplies, technical and other services and facilities of the City as the RDA required in carrying
out its function under the community redevelopment law. The former RDA was to repay the resulting
indebtedness, plus interest, from incremental property tax revenues arising from the project area, as such
revenue became available. Pursuant to redevelopment dissolution law, loans from cities to redevelopment
agencies made more than two years after formation of the redevelopment agency are not recognized
obligations. Therefore, the Consolidated Loan from the City has been previously disallowed on the Successor
Agency’s Recognized Obligation Payment Schedule (ROPS). However, AB1484 provides a method to secure
recognition of the City’s Consolidated Loan as an obligation of the Successor Agency. Upon completion of
various independent reviews and transfers of funds to Los Angeles County, the Successor Agency received a
“Finding of Completion” on April 26, 2013. On December 11, 2013, the Oversight Board made a finding that
the Consolidated Loan from the City was made for legitimate redevelopment purposes. As required by
dissolution law, twenty percent of the amount available will be deposited into the City’s Low-Moderate
Income Housing Fund.
On September 22, 2015, Governor Brown signed legislation that became effective immediately. The
legislation requires accrued interest on city loans to be recalculated using a simple interest rate of 3%.
Previously, accrued interest on the City’s loan was calculated using historical Local Agency Investment Fund
(LAIF) rates. At June 30, 2018, using the simple interest rate of 3%, the loan balance is $10,612,857.
A-88
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
59
14. SUCCESSOR AGENCY (CONTINUED)
Consolidated Loan from City (Continued)
Principal Interest Balance
Portuguese Bend 4,001,966$ 3,137,903$ 7,139,869$
Abalone Cove 2,250,978 1,222,010 3,472,988
Allowance from Successor Agency Receivable (6,252,944) (4,359,913) (10,612,857)
Totals -$ -$ -$
Due to the uncertainty of Redevelopment Property Tax Trust Fund revenue available for future loan
repayments, the City’s loan receivable of $10,612,857 has been completely offset with an allowance for
uncollectable amounts on the City’s financial statements.
Tax Increment Bond and Deferred Interest Payable
In July 1991, the former Redevelopment Agency 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
former Redevelopment Agency 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
former Redevelopment Agency’s Abalone Cove Fund. Concurrent with the execution of the Agreement, the
County deeded its title in the Abalone Cove Beach Park to the former Redevelopment Agency.
As part of the Agreement, the former Redevelopment Agency was 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 former Redevelopment
Agency 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.
A-89
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Basic Financial Statements
June 30, 2018
60
14. SUCCESSOR AGENCY (CONTINUED)
Tax Increment Bond and Deferred Interest Payable (Continued)
On November 1, 1997, the City, the former Redevelopment Agency 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 former Redevelopment Agency. 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
former Redevelopment Agency 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 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 bond was issued as a conduit through the Improvement Authority to the County. No issuance costs were
incurred. Future allocations of property tax to the Successor Agency will fund the payment of the bond debt
and the deferred interest from the original Loan until paid in full. The principal of the 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 $3,111,400. In
accordance with the MOU, the recalculated deferred interest does not accrue additional interest. As of June
30, 2014, the balance of the deferred interest debt has been completely repaid.
The California Department of Finance has approved the Tax Increment Bond and Deferred Interest Payable
as obligations of the Successor Agency.
The debt service schedule below summarizes all fixed principal and interest payments for the term of the
bond. Because the payback period for the deferred interest amount will fluctuate depending on the availability
of excess property tax revenue, no amounts have been included in the following schedule for repayment of
the deferred interest.
Year Ending June 30,Principal Interest Total
2019 255,000$ 195,875$ 450,875$
2020 280,000 182,500 462,500
2021 310,000 167,750 477,750
2022 345,000 151,375 496,375
2023 380,000 133,250 513,250
2024 - 2028 2,475,000 330,125 2,805,125
Totals 4,045,000$ 1,160,875$ 5,205,875$
A-90
REQUIRED SUPPLEMENTARY INFORMATION
A-91
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-92
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Schedule of Proportionate Share of the Net Pension Liability
Last Ten Years*
As of the Fiscal Year Ended June 30, 2018
61
Fiscal year ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Measurement period June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
Plan's proportion of the net pension liability 0.21800% 0.11120% 0.11130% 0.09183%
Plan's proportionate share of the net pension liability 11,124,689$ 9,625,397$ 7,637,567$ 5,714,320$
Plan's covered - employee payroll 6,124,374$ 6,124,374$ 5,673,471$ 5,609,006$
Plan's proportionate share of the net pension liability as
a percentage of covered - employee payroll 181.65% 157.17%134.62% 101.88%
Plan's proportionate share of the fiduciary net position as 73.31% 74.06%78.40% 76.48%
a percentage of the Plan's total pension liability
Plan's proportionate share of aggregate
employer contributions 1,096,042$ 998,812$ 919,858$ n/a
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%.
* - Fiscal year 2015 was the 1st year of implementation, therefore only four years are shown.
Miscellaneous
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined
net of pension plan investment expense but without reduction for pension plan administrative
expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of
administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement
date is without reduction of pension plan administrative expense.
A-93
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Schedule of Pension Contributions
Last Ten Years*
As of the Fiscal Year Ended June 30, 2018
62
Fiscal year ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Contractually required contribution (actuarially determined) 990,670$ 910,177$ 830,645$ 725,496$
Contributions in relation to the actuarially
determined contributions (990,670) (910,177) (830,645) (725,496)
Contribution deficiency (excess)-$ -$ -$ -$
Covered - employee payroll 6,360,881$ 6,124,374$ 5,997,450$ 5,673,471$
Contributions as a percentage of covered - employee payroll 15.57% 14.86% 13.85% 12.79%
Notes to Schedule:
Valuation Date 6/30/2016 6/30/2015 6/30/2014 6/30/2013
Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age**
Amortization method Level percentage of payroll, closed**
Asset valuation method Market Value***
Inflation 2.75%**
Salary increases Depending on age, service, and type of employment**
Investment rate of return 7.50%, net of pension plan investment expense, including inflation**
Retirement age
Mortality
* - Fiscal year 2015 was the 1st year of implementation, th erefore only four years are shown.
** - The valuation for June 30, 2012, 2013, 2014, and 2015 (a pplicable to fiscal years ended June 30, 2015, 2016, 2017, and 2018
respectively) included the same actuarial assumptions.
*** - The valuation for June 30, 2012 (applicable to fiscal year ended June 30, 2015) valued assets using a 15 Year
Smoothed Market method. The market value asset valuation method was utilized for the June 30, 2013, 2014, and 2015
valuations (applicable to fiscal years ended June 30, 2016, 2017, and 2018 respectively).
50 for all plans with the exception of 52 for Miscellaneous PEPRA 2% @ 62**
Mortality assumptions are based on mortality rates resulting from the mos t recent CalPERS
Experience Study adopted by the CalPERS Board.**
A-94
SUPPLEMENTARY SCHEDULES
A-95
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-96
63
Special Revenue 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.
Gas Tax Fund - to account for state-shared highway users’ tax that is restricted to use for street maintenance,
right-of-way acquisition and street construction.
1972 Act Landscaping and Lighting District (1972 Act) - to account for revenues and costs associated with the
City’s landscaping and lighting district.
El Prado - to account for taxes collected to maintain and service existing and proposed improvements to the
common area of the El Prado neighborhood.
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.
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
program.
Air Quality Management - to account for AB2766 fees received to fund programs to reduce air pollution from
motor vehicles.
Proposition C - to account for sales taxes received from the County and used to support public transit and related
services.
Proposition A - to account for the City share of an additional one-half percent sales tax designated to fund certain
public transportation oriented projects.
Public Safety Grants - to account for federal grant funds for local law enforcement supplemental services, AB3229
funds used for additional law enforcement services and public safety technology equipment.
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.
Measure A - to account of 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.
Measure M - to account for the half-cent sales tax and continued half-cent relief tax partially distributed to cities
approved by the Los Angeles County voters in November 2016 to fund transportation needs.
Abalone Cove Sewer Assessment - to account for property assessments used to partially pay for operation and
maintenance of the Abalone Cove sewer system.
Dr. Allen and Charlotte Ginsburg Cultural Arts Building - 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.
A-97
64
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-98
65
Special Revenue Fund Descriptions (Continued)
Donor Restricted Contributions - to account for donations received to construct or acquire recreational facilities
within the City.
Joint Powers Improvement Authority - Portuguese Bend - to account for maintenance and repairs of landslide
abatement improvements in the Portuguese Bend Project area.
Community Development Block Grant - to account for federal grants received from the Department of Housing
and Urban Development.
Federal Grants – to account for federal financial assistance programs.
Quimby - to account for developer paid fees or the dedication of land for park and recreation purposes.
Environmental Excise Tax - to account for taxes received in connection with new construction within the City.
Bikeways - to account for state funds that are used for the construction of bikeways and pedestrian facilities.
Capital Projects Fund Descriptions
Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major
capital facilities.
Low-Moderate Income Housing - to account for low and moderate income housing assets that were transferred to
the City after electing to retain the housing assets and function of the former redevelopment agency, which was
dissolved on January 31, 2012.
Affordable Housing In-Lieu - to account for developer fees paid in-lieu of providing affordable housing in
conjunction with new development as required by the Affordable Housing Chapter of the City’s Municipal Code
(Chapter 17.11).
Permanent Fund Descriptions
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.
Habitat Restoration - to account for fees paid by developers for conservation easements to be used exclusively for
habitat restoration efforts on City owned property. The Habitat Restoration Fund to be funded at the rate of $10,000
annually (plus interest) for fifty (50) years, to provide for maintenance of habitat in the future.
Sub-region One Maintenance - to account for monies used to maintain public improvements and habitat areas
dedicated to the City upon completion of the Sub-region One residential development project also known as
Oceanfront Estates. As part of the development agreement, the City received a $750,000 non-expendable deposit.
The interest earnings contribute to the maintenance of the public open space.
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 part of this Agreement, the
Authority received a $1,000,000 non-expendable deposit. The interest earnings are used to pay for maintenance
and repair of Abalone Cove landslide abatement improvements.
A-99
Gas
Tax 1972 Act El Prado 1911 Act Beautification
Cash and investments 164,353$ 27,992$ 29,870$ 2,127,675$ 458,976$
Receivables:
Taxes - - 100 25,505 -
Interest - 55 61 4,432 936
Other 51,203 - - - -
TOTAL ASSETS 215,556$ 28,047$ 30,031$ 2,157,612$ 459,912$
Accounts payable and
accrued liabilities 215,487 204 44 36,439 81,158
Due to other funds - - - - -
Unearned revenue - - - - -
TOTAL LIABILITIES 215,487 204 44 36,439 81,158
Unavailable revenue - - - -
Non-Spendable
Endowment principal - - - - -
Reimbursement settlement
agreement - - - - -
Habitat restoration - - - - -
Restricted 69 27,843 29,987 2,121,173 378,754
Assigned - - - - -
TOTAL FUND BALANCES 69 27,843 29,987 2,121,173 378,754
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCE 215,556$ 28,047$ 30,031$ 2,157,612$ 459,912$
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
ASSETS
LIABILITIES
Special Revenue Funds
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2018
66 A-100
Air Public
Waste Quality Safety
Reduction Management Proposition C Proposition A Grants Measure R
449,842$ 75,922$ 851,152$ 1,931,645$ 72,284$ 2,482,433$
- - - - - -
912 145 1,622 4,244 195 4,978
28,827 14,119 - - - -
479,581$ 90,186$ 852,774$ 1,935,889$ 72,479$ 2,487,411$
22,147 - 366,525 6,643 - -
- - - - - -
9,835 - - - - -
31,982 - 366,525 6,643 - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
447,599 90,186 486,249 1,929,246 72,479 2,487,411
- - - - - -
447,599 90,186 486,249 1,929,246 72,479 2,487,411
479,581$ 90,186$ 852,774$ 1,935,889$ 72,479$ 2,487,411$
Special Revenue Funds (Continued)
67 A-101
Dr. Allen and
Charlotte
Ginsburg Donor
Abalone Cove Cultural Restricted
Measure A Measure M Sewer Arts Building Contributions
Cash and investments 68,367$ 57,054$ 335,412$ 87,211$ 881,987$
Receivables:
Taxes - - - - -
Interest 170 303 629 178 1,813
Other 84,058 - 564 - -
TOTAL ASSETS 152,595$ 57,357$ 336,605$ 87,389$ 883,800$
Accounts payable and
accrued liabilities - 52,601 6,806 - 308
Due to other funds - - - - -
Deferred revenue - - - - -
TOTAL LIABILITIES - 52,601 6,806 - 308
Unavailable revenue 84,058 - - - -
Non-Spendable
Endowment principal - - - - -
Reimbursement settlement
agreement - - - - -
Habitat restoration - - - - -
Restricted 68,537 4,756 329,799 87,389 883,492
Assigned - - - - -
TOTAL FUND BALANCES 68,537 4,756 329,799 87,389 883,492
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 152,595$ 57,357$ 336,605$ 87,389$ 883,800$
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
LIABILITIES
ASSETS
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2018
68 A-102
Joint Powers
Improvement Community Total
Authority Development Special
Portuguese Block Grant Federal Environmental Revenue
Bend (CDBG) Grants Quimby Excise Tax Bikeways Funds
152,603$ 18,083$ 860,437$ 1,856,840$ 462,249$ -$ 13,452,387$
- - - - - - 25,605
792 - 2,109 2,894 895 - 27,363
- 28,446 181,644 - - 82,500 471,361
153,395$ 46,529$ 1,044,190$ 1,859,734$ 463,144$ 82,500$ 13,976,716$
17,538 16,418 - 46,440 - 1,729 870,487$
- - - - - 80,771 80,771
- - - - - - 9,835
17,538 16,418 - 46,440 - 82,500 961,093
- 1,054 - - - - 85,112
- - - - - - -
- - - - - - -
- - - - - - -
135,857 29,057 1,044,190 1,813,294 463,144 - 12,930,511
- - - - - - -
135,857 29,057 1,044,190 1,813,294 463,144 - 12,930,511
153,395$ 46,529$ 1,044,190$ 1,859,734$ 463,144$ 82,500$ 13,976,716$
Special Revenue Funds (Continued)
69 A-103
Total
Low-Moderate Affordable Capital
Income Housing Projects
Housing In-Lieu Funds
Cash and investments 152,110$ 821,502$ 973,612$
Receivables:
Taxes - - -
Interest 310 1,374 1,684
Other - - -
TOTAL ASSETS 152,420$ 822,876$ 975,296$
Accounts payable and
accrued liabilities - - -
Due to other funds - - -
Deferred revenue - - -
TOTAL LIABILITIES - - -
Unavailable revenue - - -
Non-Spendable
Endowment principal - - -
Reimbursement settlement
agreement - - -
Habitat restoration - - -
Restricted - - -
Assigned 152,420 822,876 975,296
TOTAL FUND BALANCES 152,420 822,876 975,296
TOTAL LIABILITIES, DEFERRED INFLOWS,
AND FUND BALANCES 152,420$ 822,876$ 975,296$
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Capital Projects Funds
70 A-104
Joint Powers Total
Subregion Improvement Total Other
Habitat One Authority Permanent Governmental
Restoration Maintenance Abalone Cove Funds Funds
1,163,670$ 796,021$ 1,055,179$ 3,014,870$ 17,440,869$
- - - - 25,605
2,279 1,612 5,520 9,411 38,458
- - - - 471,361
1,165,949$ 797,633$ 1,060,699$ 3,024,281$ 17,976,293$
86,885 3,451 2,557 92,893 963,380
- - - - 80,771
- - - - 9,835
86,885 3,451 2,557 92,893 1,053,986
- - - - 85,112
- 750,000 - 750,000 750,000
- - 1,000,000 1,000,000 1,000,000
138,813 - - 138,813 138,813
940,251 44,182 58,142 1,042,575 13,973,086
- - - - 975,296
1,079,064 794,182 1,058,142 2,931,388 16,837,195
1,165,949$ 797,633$ 1,060,699$ 3,024,281$ 17,976,293$
Permanent Funds
71 A-105
Gas
Tax 1972 Act El Prado 1911 Act
REVENUES:
Taxes -$ -$ 2,564$ 659,534$
Revenue from other agencies 1,050,827 - - -
Charges for services - - - -
Use of money and property 918 332 345 24,921
Other revenues 63,892 - - -
TOTAL REVENUES 1,115,637 332 2,909 684,455
EXPENDITURES:
Current:
Public works 1,364,223 - 492 614,584
TOTAL EXPENDITURES 1,364,223 - 492 614,584
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES (248,586) 332 2,417 69,871
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES (USES) - - - -
NET CHANGE IN
FUND BALANCES (248,586) 332 2,417 69,871
FUND BALANCES -
BEGINNING OF YEAR 248,655 27,511 27,570 2,051,302
FUND BALANCES -
END OF YEAR 69$ 27,843$ 29,987$ 2,121,173$
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2018
Special Revenue Funds
72 A-106
Air Public
Waste Quality Safety
Beautification Reduction Management Proposition C Proposition A Grants Measure R
-$ -$ -$ -$ -$ -$ -$
- 10,920 54,916 665,050 802,855 139,417 498,787
- 219,802 - - - - -
5,652 5,281 950 8,257 26,968 1,227 27,599
- - - - - - -
5,652 236,003 55,866 673,307 829,823 140,644 526,386
106,283 244,656 49,995 599,924 1,126,777 - -
106,283 244,656 49,995 599,924 1,126,777 - -
(100,631) (8,653) 5,871 73,383 (296,954) 140,644 526,386
- - - - - - -
- - - - - (140,000) -
- - - - - (140,000) -
(100,631) (8,653) 5,871 73,383 (296,954) 644 526,386
479,385 456,252 84,315 412,866 2,226,200 71,835 1,961,025
378,754$ 447,599$ 90,186$ 486,249$ 1,929,246$ 72,479$ 2,487,411$
(Continued)
Special Revenue Funds (Continued)
73 A-107
Dr. Allen and
Charlotte
Ginsburg
Abalone Cove Cultural
Measure A Measure M Sewer Arts Building
REVENUES:
Taxes -$ -$ 56,578$ -$
Revenue from other agencies 46,848 452,015 - -
Charges for services - - - -
Use of money and property 1,184 1,205 2,856 1,045
Other revenues - - - -
TOTAL REVENUES 48,032 453,220 59,434 1,045
EXPENDITURES:
Current:
Public works - 448,464 118,188 -
TOTAL EXPENDITURES - 448,464 118,188 -
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 48,032 4,756 (58,754) 1,045
OTHER FINANCING SOURCES (USES):
Transfers in - - 208,000 -
Transfers out (90,000) - - -
TOTAL OTHER FINANCING
SOURCES (USES) (90,000) - 208,000 -
NET CHANGE IN
FUND BALANCES (41,968) 4,756 149,246 1,045
FUND BALANCE -
BEGINNING OF YEAR 110,505 - 180,553 86,344
FUND BALANCES -
END OF YEAR 68,537$ 4,756$ 329,799$ 87,389$
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2018
Special Revenue Funds (Continued)
74 A-108
Joint Powers
Improvement Community Total
Donor Authority Development Special
Restricted Portuguese Block Grant Federal Environmental Revenue
Contributions Bend (CDBG) Grants Quimby Excise Tax Bikeways Funds
-$ -$ -$ -$ -$ -$ -$ 718,676$
- - 223,613 1,235,012 - - 82,500 5,262,760
- - - - - - - 219,802
10,738 2,484 - 6,799 21,048 4,655 - 154,464
35,500 - - - 38,223 156,065 - 293,680
46,238 2,484 223,613 1,241,811 59,271 160,720 82,500 6,649,382
46,724 80,065 194,556 197,621 602,567 - 82,500 5,877,619
46,724 80,065 194,556 197,621 602,567 - 82,500 5,877,619
(486) (77,581) 29,057 1,044,190 (543,296) 160,720 - 771,763
- - - - - - - 208,000
- - - - - - - (230,000)
- - - - - - - (22,000)
(486) (77,581) 29,057 1,044,190 (543,296) 160,720 - 749,763
883,978 213,438 - - 2,356,590 302,424 - 12,180,748
883,492$ 135,857$ 29,057$ 1,044,190$ 1,813,294$ 463,144$ -$ 12,930,511$
Special Revenue Funds (Continued)
75 A-109
Total
Low-Moderate Affordable Capital
Income Housing Projects
Housing In-Lieu Funds
REVENUES:
Taxes 14,713$ -$ 14,713$
Revenue from other agencies - - -
Charges for services - - -
Use of money and property 1,770 7,457 9,227
Other revenues - 221,818 221,818
TOTAL REVENUES 16,483 229,275 245,758
EXPENDITURES:
Current:
Public works - - -
TOTAL EXPENDITURES - - -
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 16,483 229,275 245,758
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out - - -
TOTAL OTHER FINANCING
SOURCES (USES) - - -
NET CHANGE IN
FUND BALANCES 16,483 229,275 245,758
FUND BALANCES -
BEGINNING OF YEAR 135,937 593,601 729,538
FUND BALANCES -
END OF YEAR 152,420$ 822,876$ 975,296$
Capital Projects Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF RANCHO PALOS VERDES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2018
76 A-110
Joint Powers Total
Subregion Improvement Total Other
Habitat One Authority Permanent Governmental
Restoration Maintenance Abalone Cove Funds Funds
-$ -$ -$ -$ 733,389$
433 - - 433 5,263,193
- - - - 219,802
13,707 9,364 16,334 39,405 203,096
- 22,716 - 22,716 538,214
14,140 32,080 16,334 62,554 6,957,694
150,633 36,228 49,158 236,019 6,113,638
150,633 36,228 49,158 236,019 6,113,638
(136,493) (4,148) (32,824) (173,465) 844,056
- 41,500 38,000 79,500 287,500
- - - - (230,000)
- 41,500 38,000 79,500 57,500
(136,493) 37,352 5,176 (93,965) 901,556
1,215,557 756,830 1,052,966 3,025,353 15,935,639
1,079,064$ 794,182$ 1,058,142$ 2,931,388$ 16,837,195$
Permanent Funds
77 A-111
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 1,185,800$ 1,185,800$ 1,050,827$ (134,973)$
Use of money and property 8,100 8,100 918 (7,182)
Other revenues 67,300 67,300 63,892 (3,408)
TOTAL REVENUES 1,261,200 1,261,200 1,115,637 (145,563)
EXPENDITURES:
Public works:
Street landscape maintenance 16,000 16,000 10,000 6,000
Traffic signal maintenance 1,354,223 1,583,100 1,354,223 228,877
TOTAL EXPENDITURES 1,370,223 1,599,100 1,364,223 234,877
NET CHANGE IN FUND BALANCE (109,023) (337,900) (248,586) 89,314
FUND BALANCE - BEGINNING OF YEAR 248,655 248,655 248,655 -
FUND BALANCE - END OF YEAR 139,632$ (89,245)$ 69$ 89,314$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND
For the year ended June 30, 2018
78 A-112
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property -$ -$ 332$ 332$
NET CHANGE IN FUND BALANCE - - 332 332
FUND BALANCE - BEGINNING OF YEAR 27,511 27,511 27,511 -
FUND BALANCE - END OF YEAR 27,511$ 27,511$ 27,843$ 332$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
1972 ACT SPECIAL REVENUE FUND
For the year ended June 30, 2018
79 A-113
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 2,300$ 2,300 2,564$ 264$
Use of money and property 200 200 345 145
TOTAL REVENUES 2,500 2,500 2,909 409
EXPENDITURES:
Public works 800 800 492 308
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,700 1,700 2,417 717
FUND BALANCE - BEGINNING OF YEAR 27,570 27,570 27,570 -
FUND BALANCE - END OF YEAR 29,270$ 29,270$ 29,987$ 717$
Budgeted Amounts
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, 2018
80 A-114
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 606,800$ 606,800 659,534$ 52,734$
Use of money and property 11,000 11,000 24,921 13,921
TOTAL REVENUES 617,800 617,800 684,455 66,655
EXPENDITURES:
Public works 1,487,000 1,523,910 614,584 909,326
NET CHANGE IN FUND BALANCE (869,200) (906,110) 69,871 975,981
FUND BALANCE - BEGINNING OF YEAR 2,051,302 2,051,302 2,051,302 -
FUND BALANCE - END OF YEAR 1,182,102$ 1,145,192$ 2,121,173$ 975,981$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
1911 ACT SPECIAL REVENUE FUND
For the year ended June 30, 2018
81 A-115
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 2,900$ 2,900$ 5,652$ 2,752$
EXPENDITURES:
Public works 475,000 494,112 106,283 387,829
NET CHANGE IN FUND BALANCE (472,100) (491,212) (100,631) 390,581
FUND BALANCE - BEGINNING OF YEAR 479,385 479,385 479,385 -
FUND BALANCE - END OF YEAR 7,285$ (11,827)$ 378,754$ 390,581$
Budgeted Amounts
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 June 30, 2018
82 A-116
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 22,100$ 22,100$ 10,920$ (11,180)$
Charges for services 185,000 185,000 219,802 34,802
Use of money and property 2,800 2,800 5,281 2,481
TOTAL REVENUES 209,900 209,900 236,003 26,103
EXPENDITURES:
Public works 290,700 290,700 244,656 46,044
NET CHANGE IN FUND BALANCE (80,800) (80,800) (8,653) 72,147
FUND BALANCE - BEGINNING OF YEAR 456,252 456,252 456,252 -
FUND BALANCE - END OF YEAR 375,452$ 375,452$ 447,599$ 72,147$
Budgeted Amounts
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, 2018
83 A-117
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 50,000$ 50,000$ 54,916$ 4,916$
Use of money and property 600 600 950 350
TOTAL REVENUES 50,600 50,600 55,866 5,266
EXPENDITURES:
Public works 50,000 50,000 49,995 5
NET CHANGE IN FUND BALANCE 600 600 5,871 5,271
FUND BALANCE - BEGINNING OF YEAR 84,315 84,315 84,315 -
FUND BALANCE - END OF YEAR 84,915$ 84,915$ 90,186$ 5,271$
Budgeted Amounts
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 year ended June 30, 2018
84 A-118
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 664,000$ 664,000$ 665,050$ 1,050$
Use of money and property 3,000 3,000 8,257 5,257
TOTAL REVENUES 667,000 667,000 673,307 6,307
EXPENDITURES:
Public works 600,000 600,000 599,924 76
NET CHANGE IN FUND BALANCE 67,000 67,000 73,383 6,383
FUND BALANCE - BEGINNING OF YEAR 412,866 412,866 412,866 -
FUND BALANCE - END OF YEAR 479,866$ 479,866$ 486,249$ 6,383$
Budgeted Amounts
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 ended June 30, 2018
85 A-119
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 800,500$ 800,500$ 802,855$ 2,355$
Use of money and property 3,100 3,100 26,968 23,868
TOTAL REVENUES 803,600 803,600 829,823 26,223
EXPENDITURES:
Public works 648,300 957,678 1,126,777 (169,099)
NET CHANGE IN FUND BALANCE 155,300 (154,078) (296,954) (142,876)
FUND BALANCE - BEGINNING OF YEAR 2,226,200 2,226,200 2,226,200 -
FUND BALANCE - END OF YEAR 2,381,500$ 2,072,122$ 1,929,246$ (142,876)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION A SPECIAL REVENUE FUND
For the year ended June 30, 2018
86 A-120
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 100,000$ 100,000$ 139,417$ 39,417$
Use of money and property 300 300 1,227 927
TOTAL REVENUES 100,300 100,300 140,644 40,344
OTHER FINANCING USES:
Transfers out (140,000) (140,000) (140,000) -
NET CHANGE IN FUND BALANCE (39,700) (39,700) 644 40,344
FUND BALANCE - BEGINNING OF YEAR 71,835 71,835 71,835 -
FUND BALANCE - END OF YEAR 32,135$ 32,135$ 72,479$ 40,344$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC SAFETY GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2018
87 A-121
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 498,000$ 498,000$ 498,787$ 787$
Use of money and property 10,600 10,600 27,599 16,999
TOTAL REVENUES 508,600 508,600 526,386 17,786
NET CHANGE IN FUND BALANCE 508,600 508,600 526,386 17,786
FUND BALANCE - BEGINNING OF YEAR 1,961,025 1,961,025 1,961,025 -
FUND BALANCE - END OF YEAR 2,469,625$ 2,469,625$ 2,487,411$ 17,786$
Budgeted Amounts
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 June 30, 2018
88 A-122
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 90,000$ 90,000$ 46,848$ (43,152)$
Use of money and property 100 100 1,184 1,084
TOTAL REVENUES 90,100 90,100 48,032 (42,068)
OTHER FINANCING USES:
Transfers out (90,000) (90,000) (90,000) -
NET CHANGE IN FUND BALANCE 100 100 (41,968) (42,068)
FUND BALANCE - BEGINNING OF YEAR 110,505 110,505 110,505 -
FUND BALANCE (DEFICIT) - END OF YEAR 110,605$ 110,605$ 68,537$ (42,068)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE A SPECIAL REVENUE FUND
For the year ended June 30, 2018
89 A-123
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 536,200$ 536,200$ 452,015$ (84,185)$
Use of money and property 4,600 100 1,205 1,105
TOTAL REVENUES 540,800 536,300 453,220 (83,080)
EXPENDITURES:
Public works 536,200 536,200 448,464 87,736
NET CHANGE IN FUND BALANCE 4,600 100 4,756 4,656
FUND BALANCE - BEGINNING OF YEAR - - - -
FUND BALANCE (DEFICIT) - END OF YEAR 4,600$ 100$ 4,756$ 4,656$
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
For the year ended June 30, 2018
Budgeted Amounts
90 A-124
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 55,100$ 55,100$ 56,578$ 1,478$
Use of money and property 500 500 2,856 2,356
TOTAL REVENUES 55,600 55,600 59,434 3,834
EXPENDITURES:
Public works 250,500 252,625 118,188 134,437
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (194,900) (197,025) (58,754) 138,271
OTHER FINANCING SOURCES:
Transfers in 208,000 208,000 208,000 -
NET CHANGE IN FUND BALANCE 13,100 10,975 149,246 138,271
FUND BALANCE - BEGINNING OF YEAR 180,553 180,553 180,553 -
FUND BALANCE - END OF YEAR 193,653$ 191,528$ 329,799$ 138,271$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ABALONE COVE SEWER ASSESSMENT SPECIAL REVENUE FUND
For the year ended June 30, 2018
91 A-125
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 500$ 500$ 1,045$ 545$
NET CHANGE IN FUND BALANCE 500 500 1,045 545
FUND BALANCE - BEGINNING OF YEAR 86,344 86,344 86,344 -
FUND BALANCE - END OF YEAR 86,844$ 86,844$ 87,389$ 545$
Budgeted Amounts
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
For the year ended June 30, 2018
SPECIAL REVENUE FUND
92 A-126
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property -$ -$ 10,738$ 10,738$
Other revenue 7,500 7,500 35,500 28,000
TOTAL REVENUES 7,500 7,500 46,238 38,738
EXPENDITURES:
Public works 305,000 311,968 46,724 265,244
NET CHANGE IN FUND BALANCE (297,500) (304,468) (486) (226,506)
FUND BALANCE - BEGINNING OF YEAR 883,978 883,978 883,978 -
FUND BALANCE - END OF YEAR 586,478$ 579,510$ 883,492$ (226,506)$
Budgeted Amounts
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 year ended June 30, 2018
93 A-127
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 1,100$ 1,100$ 2,484$ 1,384$
EXPENDITURES:
Public works 114,900 155,720 80,065 75,655
NET CHANGE IN FUND BALANCE (113,800) (154,620) (77,581) 77,039
FUND BALANCE - BEGINNING OF YEAR 213,438 213,438 213,438 -
FUND BALANCE - END OF YEAR 99,638$ 58,818$ 135,857$ 77,039$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND
For the year ended June 30, 2018
SPECIAL REVENUE FUND
94 A-128
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 139,300$ 139,300$ 223,613$ 84,313$
EXPENDITURES:
Public works 139,300 148,355 194,556 (46,201)
NET CHANGE IN FUND BALANCE - (9,055) 29,057 38,112
FUND BALANCE - BEGINNING OF YEAR - - - -
FUND BALANCE - END OF YEAR -$ (9,055)$ 29,057$ 38,112$
Budgeted Amounts
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 year ended June 30, 2018
95 A-129
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 1,131,300$ 1,131,300$ 1,235,012$ 103,712$
Use of money and property - - 6,799 6,799
TOTAL REVENUES 1,131,300 1,131,300 1,241,811 110,511
EXPENDITURES:
Public works 1,131,300 1,169,137 197,621 971,516
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - (37,837) 1,044,190 1,082,027
FUND BALANCE - BEGINNING OF YEAR - - - -
FUND BALANCE - END OF YEAR -$ (37,837)$ 1,044,190$ 1,082,027$
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FEDERAL GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2018
Budgeted Amounts
96 A-130
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 14,400$ 14,400$ 21,048$ 6,648$
Other revenues 51,000 51,000 38,223 (12,777)
TOTAL REVENUES 65,400 65,400 59,271 (6,129)
EXPENDITURES:
Public works 650,000 1,713,116 602,567 1,110,549
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (584,600) (1,647,716) (543,296) 1,104,420
FUND BALANCE - BEGINNING OF YEAR 2,356,590 2,356,590 2,356,590 -
FUND BALANCE - END OF YEAR 1,771,990$ 708,874$ 1,813,294$ 1,104,420$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
QUIMBY SPECIAL REVENUE FUND
For the year ended June 30, 2018
97 A-131
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 1,500$ 1,500$ 4,655$ 3,155$
Other revenues 113,000 113,000 156,065 43,065
TOTAL REVENUES 114,500 114,500 160,720 46,220
NET CHANGE IN FUND BALANCE 114,500 114,500 160,720 46,220
FUND BALANCE - BEGINNING OF YEAR 302,424 302,424 302,424 -
FUND BALANCE - END OF YEAR 416,924$ 416,924$ 463,144$ 46,220$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX SPECIAL REVENUE FUND
For the year ended June 30, 2018
98 A-132
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 82,500$ 82,500$ 82,500$ -$
TOTAL REVENUES 82,500 82,500 82,500 -
EXPENDITURES:
Public works 82,500 82,500 82,500 -
NET CHANGE IN FUND BALANCE - - - -
FUND BALANCE - BEGINNING OF YEAR - - - -
FUND BALANCE - END OF YEAR -$ -$ -$ -$
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
BIKEWAYS SPECIAL REVENUE FUND
For the year ended June 30, 2018
Budgeted Amounts
99 A-133
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 44,700$ 44,700$ 14,713$ (29,987)$
Use of money and property 600 600 1,770 -
NET CHANGE IN FUND BALANCE 45,300 45,300 16,483 (29,987)
FUND BALANCE - BEGINNING OF YEAR 135,937 135,937 135,937 -
FUND BALANCE - END OF YEAR 181,237$ 181,237$ 152,420$ (29,987)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LOW-MODERATE INCOME CAPITAL PROJECTS FUND
For the year ended June 30, 2018
100 A-134
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 3,500$ 3,500$ 7,457$ 3,957$
Other revenues - - 221,818 221,818
NET CHANGE IN FUND BALANCE 3,500 3,500 229,275 225,775
FUND BALANCE - BEGINNING OF YEAR 593,601 593,601 593,601 -
FUND BALANCE - END OF YEAR 597,101$ 597,101$ 822,876$ 225,775$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AFFORDABLE HOUSING IN-LIEU CAPITAL PROJECTS FUND
For the year ended June 30, 2018
101 A-135
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies -$ -$ 433$ 433$
Use of money and property 5,000 5,000 13,707 8,707
TOTAL REVENUES 5,000 5,000 14,140 9,140
EXPENDITURES:
Public works 174,300 174,300 150,633 23,667
NET CHANGE IN FUND BALANCE (169,300) (169,300) (136,493) 32,807
FUND BALANCE - BEGINNING OF YEAR 1,215,557 1,215,557 1,215,557 -
FUND BALANCE - END OF YEAR 1,046,257$ 1,046,257$ 1,079,064$ 32,807$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HABITAT RESTORATION PERMANENT FUND
For the year ended June 30, 2018
102 A-136
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 4,800$ 4,800$ 9,364$ 4,564$
Other revenue - - 22,716 22,716
TOTAL REVENUES 4,800 4,800 32,080 27,280
EXPENDITURES:
Public works 44,800 44,800 36,228 8,572
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (40,000) (40,000) (4,148) 18,708
OTHER FINANCING SOURCES:
Transfers in 41,500 41,500 41,500 -
NET CHANGE IN FUND BALANCE 1,500 1,500 37,352 18,708
FUND BALANCE - BEGINNING OF YEAR 756,830 756,830 756,830 -
FUND BALANCE - END OF YEAR 758,330$ 758,330$ 794,182$ 18,708$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SUBREGION ONE PERMANENT FUND
For the year ended June 30, 2018
103 A-137
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 3,400$ 3,400$ 16,334$ 12,934$
EXPENDITURES:
Public works 74,600 92,100 49,158 42,942
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (71,200) (88,700) (32,824) (30,008)
OTHER FINANCING SOURCES:
Transfers in 38,000 38,000 38,000 -
NET CHANGE IN FUND BALANCE (33,200) (50,700) 5,176 (30,008)
FUND BALANCE - BEGINNING OF YEAR 1,052,966 1,052,966 1,052,966 -
FUND BALANCE - END OF YEAR 1,019,766$ 1,002,266$ 1,058,142$ (30,008)$
Budgeted Amounts
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, 2018
104 A-138
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 286,200$ 286,200$ -$ (286,200)$
Use of money and property 172,400 172,400 303,782 131,382
TOTAL REVENUES 458,600 458,600 303,782 (154,818)
EXPENDITURES:
Capital Outlay
Infrastructure administration 155,000 271,070 75,044 196,026
Street improvements 5,022,300 7,585,944 6,836,730 749,214
Parks/Trails/Open Space improvements - 396,061 425,485 (29,424)
Sewer improvements - 175,000 - 175,000
Landslide improvements 100,000 192,587 157,349 35,238
Building improvements 387,100 237,300 9,000 228,300
TOTAL EXPENDITURES 5,664,400 8,857,962 7,503,608 1,354,354
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (5,205,800) (8,399,362) (7,199,826) 1,199,536
OTHER FINANCING SOURCES:
Transfers in 4,526,000 4,526,000 4,526,000 -
NET CHANGE IN FUND BALANCE (679,800) (3,873,362) (2,673,826) 1,199,536
FUND BALANCE - BEGINNING OF YEAR 27,079,301 27,079,301 27,079,301 -
FUND BALANCE - END OF YEAR 26,399,501$ 23,205,939$ 24,405,475$ 1,199,536$
Budgeted Amounts
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, 2018
105 A-139
106
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-140
STATISTICAL SECTION
(UNAUDITED)
A-141
2009 2010 2011 2012 2013
Governmental activities
Net investment in capital assets 107,867$ 115,331$ 115,145$ 114,488$ 113,284$
Restricted 1,000 1,000 1,750 1,750 1,835
Unrestricted 31,277 31,855 39,066 67,112 46,687
Total governmental activities net position 140,144$ 148,186$ 155,961$ 183,351$ 161,806$
Business-type activities
Net investment in capital assets 12,477$ 12,458$ 12,753$ 13,356$ 18,319$
Restricted - - - - -
Unrestricted 2,108 2,825 3,365 3,532 9,727
Total business-type activities net position 14,585$ 15,283$ 16,118$ 16,888$ 28,046$
Primary government
Net investment in capital assets 120,344$ 127,789$ 127,898$ 127,845$ 131,603$
Restricted 1,000 1,000 1,750 1,750 1,835
Unrestricted 33,385 34,680 42,431 70,644 56,414
Total primary government net position 154,729$ 163,469$ 172,079$ 200,238$ 189,852$
City of Rancho Palos Verdes
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
107 A-142
2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets 114,427$ 119,450$ 118,399$ 123,437$ 125,420$
Restricted 11,792 11,647 21,120 19,387 17,300
Unrestricted 46,679 42,208 42,210 43,618 44,168
Total governmental activities net position 172,898$ 173,305$ 181,729$ 186,442$ 186,888$
Business-type activities
Net investment in capital assets 29,557$ 31,168$ 31,663$ 31,311$ 34,996$
Restricted - - - - -
Unrestricted 5,317 5,334 5,598 4,600 (128)
Total business-type activities net position 34,874$ 36,502$ 37,261$ 35,911$ 34,868$
Primary government
Net investment in capital assets 143,984$ 150,618$ 150,062$ 154,748$ 160,416$
Restricted 11,792 11,647 21,120 19,387 17,300
Unrestricted 51,996 47,542 47,808 48,218 44,040
Total primary government net position 207,772$ 209,807$ 218,990$ 222,353$ 221,756$
City of Rancho Palos Verdes
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
108 A-143
2009 2010 2011 2012 2013
Expenses
Governmental activities:
Administration 6,357$ 7,824$ 5,997$ 5,906$ 5,534$
Public safety 4,233 4,242 4,335 4,178 4,348
Public works 10,555 13,633 10,389 11,202 10,874
Community development 2,697 2,550 2,622 2,432 2,526
Parks and recreation 1,605 1,826 1,391 1,490 1,696
Non-departmental - 320 - - -
Interest on long-term debt 268 265 260 109 -
Total governmental activities expenses 25,715 30,660 24,994 25,318 24,978
Business-type activities:
Water Quality Flood Protection 437 580 489 560 594
Total primary government expenses 26,152$ 31,240$ 25,483$ 25,878$ 25,572$
Program Revenues
Governmental activities:
Charges for services:
Administration 555$ 681$ 654$ 747$ 779$
Public safety 267 229 261 194 150
Public works 422 1,356 622 684 543
Community development 1,643 1,764 1,714 1,644 1,854
Parks and recreation 483 896 457 503 476
Non-departmental - - - - -
Operating grants and contributions 2,963 6,633 3,689 3,628 4,133
Capital grants and contributions 642 7,179 5 139 139
Total governmental activities program revenues 6,975 18,738 7,402 7,538 8,074
Business-type activities:
Charges for services:
Water Quality Flood Protection 1,578 1,264 1,312 1,319 1,313
Operating grants and contributions - - - - 2,137
Capital grants and contributions - - - - -
Total business-type activities program revenues 1,578 1,264 1,312 1,319 3,450
Total primary government program revenues 8,553$ 20,002$ 8,714$ 8,857$ 11,524$
Net (expense)/revenue
Governmental activities (18,740)$ (11,922)$ (17,592)$ (17,780)$ (16,904)$
Business-type activities 1,141 684 823 759 2,856
Total primary government net expense (17,599)$ (11,238)$ (16,769)$ (17,022)$ (14,048)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 11,462$ 11,431$ 11,854$ 11,480$ 11,284$
Transient occupancy tax 85 1,955 2,640 3,349 3,790
Sales taxes 1,053 1,246 1,548 1,449 1,588
Franchise taxes 1,709 1,711 1,825 1,881 1,907
Utility user taxes 2,267 2,395 2,407 2,333 2,481
Other taxes 605 712 814 674 778
Investment income 631 207 318 604 184
Other 225 307 271 52 929
Transfers - - - - (8,293)
Extraordinary item - - - 23,348 (19,289)
Total governmental activities 18,037 19,964 21,677 45,170 (4,641)
Business-type activities:
Investment income 105 14 13 11 10
User Fees - - - - -
Other - - - - -
Transfers - - - - 8,293
Total business-type activities 105 14 13 11 8,303
Total primary government 18,142$ 19,978$ 21,690$ 45,181$ 3,662$
City of Rancho Palos Verdes
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
109 A-144
2009 2010 2011 2012 2013
City of Rancho Palos Verdes
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Change in Net Position
Governmental activities (703)$ 8,042$ 4,085$ 27,390$ (21,545)$
Business-type activities 1,246 698 836 770 11,159
Total primary government net expense 543$ 8,740$ 4,921$ 28,159$ (10,386)$
110 A-145
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-146
2014 2015 2016 2017 2018
Expenses
Governmental activities:
Administration 7,530$ 7,127$ 8,062$ 6,746$ 7,258$
Public safety 4,429 4,670 5,215 6,534 7,339
Public works 9,377 10,692 9,610 10,638 16,073
Community development 1,927 2,072 1,971 2,664 2,726
Parks and recreation 1,369 1,669 2,052 2,434 2,736
Non-departmental 35 191 134 2,400 1,166
Interest on long-term debt - - - - -
Total governmental activities expenses 24,667 26,421 27,044 31,416 37,298
Business-type activities:
Water Quality Flood Protection 659 1,423 646 1,400 1,071
Total primary government expenses 25,326$ 27,844$ 27,690$ 32,816$ 38,369$
Program Revenues
Governmental activities:
Charges for services:
Administration 120$ 108$ 318$ 1,081$ 1,032$
Public safety 42 43 179 140 124
Public works 169 432 159 274 659
Community development 1,772 2,058 958 2,066 729
Parks and recreation 18 144 781 708 2,083
Non-departmental - - 96 - -
Operating grants and contributions 2,506 2,274 2,332 4,196 4,481
Capital grants and contributions 2,912 1,230 1,111 818 769
Total governmental activities program revenues 7,539 6,289 5,934 9,283 9,877
Business-type activities:
Charges for services:
Water Quality Flood Protection 1,361 1,369 1,385 11 -
Operating grants and contributions - - - - -
Capital grants and contributions 6,115 1,213 - - -
Total business-type activities program revenues 7,476 2,582 1,385 11 -
Total primary government program revenues 15,015$ 8,871$ 7,319$ 9,294$ 9,877$
Net (expense)/revenue
Governmental activities (17,128)$ (20,132)$ (21,110)$ (22,133)$ (27,421)$
Business-type activities 6,817 1,159 738 (1,389) (1,071)
Total primary government net expense (10,311)$ (18,973)$ (20,372)$ (23,522)$ (28,492)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 11,991$ 12,452$ 13,764$ 13,302$ 13,762$
Transient occupancy tax 4,250 4,812 5,197 5,601 5,615
Sales taxes 1,642 1,758 2,104 2,463 2,129
Franchise taxes 1,998 2,045 2,045 1,985 1,838
Utility user taxes 2,510 1,973 1,866 1,775 403
Other taxes 1,589 1,564 1,179 365 2,520
Investment income 94 122 214 434 838
Other 4,146 3,231 2,608 920 763
Transfers - (458) - - -
Extraordinary item - - - - -
Total governmental activities 28,220 27,499 28,977 26,845 27,868
Business-type activities:
Investment income 11 10 21 35 29
User Fees - - - - -
Other - - - - -
Transfers - 458 - 3 -
Total business-type activities 11 468 21 38 29
Total primary government 28,231$ 27,967$ 28,998$ 26,883$ 27,897$
Change in Net Position
Governmental activities 11,092$ 7,367$ 7,868$ 4,713$ 447$
Business-type activities 6,828 1,627 759 (1,351) (1,042)
Total primary government net expense 17,920$ 8,994$ 8,627$ 3,362$ (595)$
City of Rancho Palos Verdes
(amounts expressed in thousands)
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position
111 A-147
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-148
Transient Utility
Fiscal Property Occupancy Sales Franchise Users Other
Year Tax Tax Tax Tax Tax Taxes Total
2009 11,462 85 1,053 1,709 2,267 605 17,181
2010 11,431 1,955 1,246 1,711 2,395 712 19,450
2011 11,854 2,640 1,548 1,825 2,407 814 21,088
2012 11,480 3,349 1,449 1,881 2,333 674 21,166
2013 11,284 3,790 1,588 1,907 2,481 778 21,828
2014 11,991 4,250 1,642 1,998 2,510 1,589 23,980
2015 12,452 4,812 1,758 2,044 1,973 1,564 24,603
2016 13,764 5,197 2,104 2,045 1,866 1,179 26,155
2017 13,302 5,601 2,463 1,985 1,775 365 25,491
2018 13,028 5,615 2,520 2,129 1,838 1,290 26,420
Source
City General Ledger
City of Rancho Palos Verdes
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
112 A-149
2009 2010
General Fund
Reserved 6,314$ 7,166$
Designated 1,333 1,462
Unreserved, Undesignated 10,440 10,745
Total General Fund 18,087$ 19,373$
All other Governmental Funds
Reserved 3,672$ 6,361$
Designated
Special Revenue Funds 411 85
Capital Projects Funds 6,442 7,494
Permanent Fund - -
Debt Service Fund - -
Unreserved, Undesignated, reported in:
Special Revenue Funds 7,910 6,058
Capital Projects Funds 3,373 1,240
Permanent Fund 362 333
Debt Service Fund (16,823) (17,797)
Total all other Governmental Funds 5,347$ 3,774$
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Three Fiscal Years - Before GASB 54
(modified accrual basis of accounting)
(amounts expressed in thousands)
113 A-150
2011 2012 2013 2014 2015 2016 2017 2018
General Fund
Non-Spendable 7,515$ 7,493$ 138$ 144$ 598$ 564$ 190$ 913$
Restricted - - - - - -
Committed - - - 802 964 715
Assigned - - - - - -
Unassigned 11,385 12,464 14,370 15,474 16,055 13,702 15,671 16,450
Total General Fund 18,900$ 19,957$ 14,508$ 15,618$ 16,653$ 15,068$ 16,825$ 18,078$
All other Governmental Funds
Non-Spendable
Special Revenue Funds 4,818$ 3,066$ -$ -$ -$ -$ -$ -$
Debt Service Fund 573 - - - - - -
Capital Projects Funds - - - - - -
Permanent Fund 1,750 1,750 1,835 1,845 1,855 1,866 1,877 1,889
Restricted
Special Revenue Funds 7,952 8,187 7,849 8,445 8,362 9,757 11,702 12,825
Capital Projects Funds 313 - - - 3,000 4,660 1,438
Permanent Fund 319 226 280 1,502 1,492 1,312 1,148 1,148
Committed
Special Revenue Funds 36 58 55 353 - -
Capital Projects Funds - - - 3,467 - -
Permanent Fund - - - - - -
Assigned
Special Revenue Funds - 794 572 476 479 -
Capital Projects Funds 11,650 15,407 13,084 18,535 21,078 23,902 23,149 23,942
Permanent Fund - - - - - -
Unassigned
Special Revenue Funds (126) (108) (198) (116) (59) - - -
Debt Service Fund (19,687) - - - - - -
Capital Projects Funds - - - - - -
Permanent Fund - - - - - -
Total all other Governmental Funds 7,562$ 28,528$ 22,885$ 31,063$ 33,355$ 44,133$ 43,015$ 41,242$
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Seven Fiscal Years - After GASB 54
(modified accrual basis of accounting)
(amounts expressed in thousands)
114 A-151
2009 2010 2011 2012 2013
Revenues
Taxes 17,573$ 19,844$ 21,419$ 21,867$ 22,543$
Licenses and permits 1,755 1,954 1,933 1,806 2,027
Fines and forfeitures 214 179 210 159 117
Use of money and property 1,240 1,601 1,560 1,350 1,383
Charges for services 163 81 73 149 141
Donation - - - - 445
Revenues from other agencies 3,575 10,180 3,162 3,421 3,395
Other Revenues 467 4,806 229 259 741
Total Revenues 24,987 38,645 28,586 29,011 30,791
Expenditures
Administration 4,915 5,720 5,503 5,726 5,401
Public Safety 4,233 4,242 4,335 4,178 4,348
Public Works 7,075 6,896 7,875 7,616 7,240
Parks and Recreation 1,354 1,702 1,257 1,479 1,557
Community Development 2,723 2,604 2,784 2,484 2,591
Non-Departmental - 320 - - -
Pass Through to other agencies 187 - - - -
Capital Outlay 2,459 14,567 2,557 3,155 2,721
Debt Service
Principal 350 419 423 464 -
Interest 1,101 886 887 498 -
Total Expenditures 24,397 37,356 25,621 25,599 23,857
Excess of Revenues over (under) Expenditures 590 1,289 2,965 3,412 6,934
Other Financing Sources (uses)
Sales of capital assets - - 350 - -
Transfers in 5,815 4,616 8,944 8,226 7,954
Transfers out (5,815) (6,192) (8,944) (7,856) (16,247)
Bond Proceeds - - - - -
Advances to the Redevelopment Agency - - - - -
Total Other Financing Sources (uses)- (1,576) 350 371 (8,293)
Extraordinary Gain (Loss)- - - 18,240 (6,743)
Net change in Fund Balances 590$ (287)$ 3,315$ 22,023$ (8,102)$
Cost of Assets Capitalized 1,895 10,866 3,180 2,865 2,022
Debt Services as a percentage of Non-Capital Expenditures 6.4% 4.9% 5.8% 4.2% 0.0%
City of Rancho Palos Verdes
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual basis of Accounting)
(Amounts expressed in thousands)
115 A-152
2014 2015 2016 2017 2018
Revenues
Taxes 23,981$ 24,603$ 25,725$ 25,491$ 26,266$
Licenses and permits 1,951 2,515 2,383 3,044 3,095
Fines and forfeitures 128 135 180 153 144
Use of money and property 846 653 750 415 714
Charges for services 323 427 558 1,072 1,113
Donation - - - - -
Revenues from other agencies 5,301 3,794 3,443 5,117 5,345
Other Revenues 3,068 2,377 1,668 732 1,038
Total Revenues 35,598 34,504 34,707 36,024 37,715
Expenditures
Administration 5,792 5,135 6,183 5,445 5,867
Public Safety 4,492 4,761 5,215 6,534 7,399
Public Works 7,611 8,042 7,961 9,084 11,068
Parks and Recreation 1,573 1,819 2,042 2,175 2,493
Community Development 2,640 2,870 2,619 2,664 2,736
Non-Departmental 35 190 238 2,400 1,167
Pass Through to other agencies - - - - -
Capital Outlay 4,113 8,697 1,344 7,106 7,504
Debt Service
Principal - - - - -
Interest - - - - -
Total Expenditures 26,256 31,514 25,602 35,408 38,234
Excess of Revenues over (under) Expenditures 9,342 2,990 9,105 616 (519)
Other Financing Sources (uses)
Sales of capital assets - - - - -
Transfers in 10,424 13,525 11,784 4,577 5,044
Transfers out (10,479) (13,188) (11,784) (4,577) (5,044)
Bond Proceeds - - - - -
Advances to the Redevelopment Agency - - - - -
Total Other Financing Sources (uses)(55) 337 - - -
Extraordinary Gain (Loss)- - - - -
Net change in Fund Balances 9,287$ 3,327$ 9,105$ 616$ (519)$
Cost of Assets Capitalized 4,820 8,490 2,398 8,228 8,228
Debt Services as a percentage of Non-Capital Expenditures 0.0% 0.0% 0.0% 0.0% 0.0%
City of Rancho Palos Verdes
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual basis of Accounting)
(Amounts expressed in thousands)
116 A-153
Transient Utility
Fiscal Property Occupancy Sales Franchise Users Other
Year Tax Tax Tax Tax Tax Taxes Total
2009 11,462 85 1,060 1,709 2,267 990 17,573
2010 11,431 1,955 1,158 1,711 2,395 1,194 19,844
2011 11,854 2,640 1,518 1,825 2,407 1,175 21,419
2012 11,480 3,349 1,452 1,881 2,333 1,372 21,867
2013 11,284 3,790 1,589 1,907 2,481 1,492 22,543
2014 11,991 4,250 1,642 1,998 2,510 1,590 23,981
2015 12,452 4,812 1,758 2,044 1,973 1,564 24,603
2016 13,764 5,197 2,104 2,045 1,866 1,179 26,155
2017 13,302 5,601 2,463 1,985 1,775 365 25,491
2018 13,028 5,615 2,520 2,129 1,838 1,290 26,420
Source
City General Ledger
City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts expressed in thousands)
117 A-154
Fiscal
Year Residential Commercial Industrial Other Unsecured
End Property Property Property Property Property
2009 8,235,780 270,956 3,275 491,235 46,858
2010 8,333,042 263,157 3,341 598,539 49,628
2011 8,362,052 396,195 3,333 570,551 45,258
2012 8,596,777 390,497 3,358 564,763 70,284
2013 8,843,139 402,533 3,425 581,160 48,147
2014 9,190,789 475,510 3,493 660,569 46,962
2015 9,492,704 486,378 3,509 679,241 45,906
2016 10,094,704 501,636 3,580 695,738 44,300
2017 10,770,321 531,536 3,634 506,899 24,986
2018 11,302,341 541,829 3,707 521,883 26,829
2010-2013 & 2006-07 County Assessor data, Avenu Insights & Analytics
2008-2009 data is provided from previously published CAFR's
Unitary value of $840,000 is excluded.
City of Rancho Palos Verdes
Assessed Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
Source
118 A-155
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-156
City Estimated Assessed
Fiscal Less Taxable Direct Actual Factor of Value as a
Year Tax-Exempt Assessed Tax Taxable Taxable Percentage of
End Property Value Rate (1)Value (2)Assessed Value (3) Actual Value
2009 154,969 8,893,135 0.063728 11,835,429$ 1.33085 75.14%
2010 236,925 9,010,782 0.063728 9,515,593$ 1.05602 94.69%
2011 158,388 9,219,001 0.063728 9,067,313$ 0.98355 101.67%
2012 157,307 9,468,372 0.063728 10,683,820$ 1.12837 88.62%
2013 174,167 9,704,237 0.063728 11,390,239$ 1.17374 85.20%
2014 153,434 10,223,889 0.063728 13,967,877$ 1.36620 73.20%
2015 151,709 10,556,029 0.063728 13,571,675$ 1.28568 77.78%
2016 155,138 11,184,820 0.063728 15,366,477$ 1.37387 72.79%
2017 174,779 11,662,598 0.063728 17,011,415$ 1.45863 68.56%
2018 180,953 12,215,635 0.063728 15,669,728$ 1.28276 77.96%
City of Rancho Palos Verdes
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
Source
(1) City Direct Tax Rate is represented by TRA 001-224.
(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based
on these calculations a factor was extrapolated and applied to current assessed values.
2010-2013 & 2006-07 County Assessor data, Avenu Insights & Analytics
2008-2009 data is provided from previously published CAFR's
Unitary value of $840,000 is excluded.
119 A-157
2008-09 2009-10 2010-11 2011-12 2012-13
CITY DIRECT RATE 0.063728 0.063728 0.063728 0.063728 0.063728
All other direct rates:
LA COUNTY GENERAL 0.441223 0.441223 0.441223 0.441223 0.441223
LA COUNTY ACCUM CAP OUTLAY 0.000110 0.000110 0.000110 0.000110 0.000110
CONSOL. FIRE PRO.DIST OF LA CO. 0.169715 0.169715 0.169715 0.169715 0.169715
LA CO. FIRE-FFW 0.006910 0.006910 0.006910 0.006910 0.006910
LA CO.FL.CON.DR.IMP.DIST.MAINT. 0.002597 0.002597 0.002597 0.002597 0.002597
LA CO FLOOD CONTROL MAINT 0.014699 0.014699 0.014699 0.014699 0.014699
PALOS VERDES LIBRARY DIST MAINT 0.043470 0.043470 0.043470 0.043470 0.043470
LA CO WEST VECTOR CONTROL DIST.0.000319 0.000319 0.000319 0.000319 0.000319
CO SANITATION DIST NO 5 OPERAT 0.017499 0.017499 0.017499 0.017499 0.017499
WTR REPLENISHMENT DIST OF SO CAL 0.000181 0.000181 0.000181 0.000181 0.000181
ERAF 0.000000 0.000000 0.000000 0.000000 0.000000
EDUCATIONAL AUG FD IMPOUND 0.000000 0.000000 0.000000 0.000000 0.000000
COUNTY SCHOOL SERVICES 0.001369 0.001369 0.001369 0.001369 0.001369
CHILDREN'S INSTIL TUITION FUND 0.002717 0.002717 0.002717 0.002717 0.002717
LA CITY COMM COLLEGE DIST 0.029214 0.029214 0.029214 0.029214 0.029214
LA COMM COLL CHILDREN'S CTR FD 0.000302 0.000302 0.000302 0.000302 0.000302
PALOS VERDES PENINSULA USD 0.196986 0.196986 0.196986 0.196986 0.196986
CO.SCH.SERV.FD-LOS ANGELES 0.008085 0.008085 0.008085 0.008085 0.008085
DEV.CTR.HDCPD MINOR-LA UNIF. 0.000876 0.000876 0.000876 0.000876 0.000876
TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Debt Service Rates
COUNTY 0.000000 0.000000 0.000000 0.000000 0.000000
PALOS VERDES PEN USD 0.020177 0.021642 0.022493 0.022511 0.024102
COMMNTY COLLEGE 0.022115 0.023112 0.040310 0.035296 0.048750
PALOS VERDES LIB 0.006801 0.006618 0.006719 0.006359 0.006441
FLOOD CONTROL 0.000000 0.000000 0.000000 0.000000 0.000000
METRO WATER DIST 0.004300 0.004300 0.003700 0.003700 0.003500
TOTAL 0.053393 0.055672 0.073222 0.067866 0.082793
TOTAL TAX RATE 1.053393 1.055672 1.073222 1.067866 1.082793
Source
2010-2015 County Assessor data, Avenu Insights & Analytics
2007-2009 data is provided from previously published CAFR's
City has no separate debt service rate, direct rate is 100% operating.
TRA 149 is represented for this report.
City of Rancho Palos Verdes
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
120 A-158
2013-14 2014-15 2015-16 2016-17 2017-18
CITY DIRECT RATE 0.063728 0.063728 0.063728 0.063728 0.063728
All other direct rates:
LA COUNTY GENERAL 0.441223 0.441223 0.441223 0.441223 0.441223
LA COUNTY ACCUM CAP OUTLAY 0.000110 0.000110 0.000110 0.000110 0.000110
CONSOL. FIRE PRO.DIST OF LA CO. 0.169715 0.169715 0.169715 0.169715 0.169715
LA CO. FIRE-FFW 0.006910 0.006910 0.006910 0.006910 0.006910
LA CO.FL.CON.DR.IMP.DIST.MAINT. 0.002597 0.002597 0.002597 0.002597 0.002597
LA CO FLOOD CONTROL MAINT 0.014699 0.014699 0.014699 0.014699 0.014699
PALOS VERDES LIBRARY DIST MAINT 0.043470 0.043470 0.043470 0.043470 0.043470
LA CO WEST VECTOR CONTROL DIST.0.000319 0.000319 0.000319 0.000319 0.000319
CO SANITATION DIST NO 5 OPERAT 0.017499 0.017499 0.017499 0.017499 0.017499
WTR REPLENISHMENT DIST OF SO CAL 0.000181 0.000181 0.000181 0.000181 0.000181
ERAF 0.000000 0.000000 0.000000 0.000000 0.000000
EDUCATIONAL AUG FD IMPOUND 0.000000 0.000000 0.000000 0.000000 0.000000
COUNTY SCHOOL SERVICES 0.001369 0.001369 0.001369 0.001369 0.001369
CHILDREN'S INSTIL TUITION FUND 0.002717 0.002717 0.002717 0.002717 0.002717
LA CITY COMM COLLEGE DIST 0.029214 0.029214 0.029214 0.029214 0.029214
LA COMM COLL CHILDREN'S CTR FD 0.000302 0.000302 0.000302 0.000302 0.000302
PALOS VERDES PENINSULA USD 0.196986 0.196986 0.196986 0.196986 0.196986
CO.SCH.SERV.FD-LOS ANGELES 0.008085 0.008085 0.008085 0.008085 0.008085
DEV.CTR.HDCPD MINOR-LA UNIF. 0.000876 0.000876 0.000876 0.000876 0.000876
TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Debt Service Rates
COUNTY 0.000000 0.000000 0.000000 0.000000 0.000000
PALOS VERDES PEN USD 0.023109 0.023289 0.023433 0.023197 0.023093
COMMNTY COLLEGE 0.044541 0.040174 0.035755 0.035956 0.045990
PALOS VERDES LIB 0.006118 0.005854 0.005630 0.000000 0.000000
FLOOD CONTROL 0.000000 0.000000 0.000000 0.000000 0.000000
METRO WATER DIST 0.003500 0.003500 0.003500 0.003500 0.003500
TOTAL 0.077268 0.072817 0.068318 0.062653 0.072583
TOTAL TAX RATE 1.077268 1.072817 1.068318 1.062653 1.072583
Source
2010-2015 County Assessor data, Avenu Insights & Analytics
2007-2009 data is provided from previously published CAFR's
City has no separate debt service rate, direct rate is 100% operating.
TRA 149 is represented for this report.
City of Rancho Palos Verdes
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
121 A-159
Percentage of Percentage of
Taxable Total City Taxable Taxable Total City Taxable
Taxpayer Value ($) Rank Value (%)Value ($) Rank Value (%)
Long Point Dev LLC 471,401,026 1 3.86%141,050,712 1 1.59%
Gs Palos Verdes LLC 70,780,638 2 0.58%
P V Victoria Apts LLC 52,068,939 3 0.43%45,897,696 4 0.52%
Terraces Subsidiary LLC 43,396,563 4 0.36%
6507 6510 Vista Catalina Apts 40,948,530 5 0.34%
Western Riviera Investors 32,518,723 6 0.27%27,939,408 6 0.31%
Vhps LLC 30,269,306 7 0.25%59,570,132 3 0.67%
Golden Cove LLC 30,184,550 8 0.25%25,499,992 7 0.29%
Belmont Village Rpv Lp 25,464,974 9 0.21%21,848,400 9 0.25%
Ocean View Drive Inc.19,482,377 10 0.16%
Johnson Eric C 17,596,666 11 0.14%
Wlp Westmont Plaza LLC 15,632,431 12 0.13%
California Water Service Co 13,771,287 13 0.11%7,758,412 16 0.09%
American Golf Inc.13,005,172 14 0.11%10,254,558 13 0.12%
Glenmont Cal Coast Rpv LLC 12,843,932 15 0.11%
Wang Lisa 12,022,166 16 0.10%
Taylor Morrison Of California 11,934,976 17 0.10%
Kopcho Richard S 11,118,000 18 0.09%
Victoria Apts 8,632,586 19 0.07%7,629,651 17 0.09%
Thornecrest LLC 8,620,953 20 0.07%
Palos Verdes Terrace Ltd.8,457,313 21 0.07%7,473,834 18 0.08%
Li Xin 8,300,000 22 0.07%
Mulligan Michael Gina 8,241,452 23 0.07%
Xcx Bear LLC 8,061,794 24 0.07%
Bruning Fred W 8,035,789 25 0.07%
Ppc Villas Rpv LLC 88,138,400 2 0.99%
Terraces Rancho Palos Verdes L 34,541,279 5 0.39%
Cox Com Inc. Orange 24,179,886 8 0.27%
Johnson Eric C Co Tr 19,042,339 10 0.21%
Tridiamond LLC 13,081,509 11 0.15%
Ruffin Phillip G 11,730,000 12 0.13%
Amdan Investment LLC Lessee 9,470,000 14 0.11%
3200 Pv Drive West LLC 8,545,811 15 0.10%
Desi Family Limited Partnershi 6,600,000 19 0.07%
500 Silver Spur Road LLC 6,277,021 20 0.07%
Labarba James G Co Tr 5,982,085 21 0.07%
Myers Woodrow A Jr Tr 5,943,648 22 0.07%
Ae Mission Group LLC 5,916,000 23 0.07%
Imbach Scott A & Diane Y Trs 5,803,113 24 0.07%
Oceans 25 Rpv LLC 5,769,180 25 0.06%
Total Top 25 Taxpayers 982,790,143$ 8.05%605,943,066$ 6.81%
Total Taxable Value 12,215,635,343$ 100.00%8,893,109,966$ 100.00%
Source
Los Angeles County Assessor data, Avenu Insights & Analytics
City of Rancho Palos Verdes
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2017-18 2008-09
122 A-160
Total Tax
Fiscal Levy for Percentage Collections in Percentage
Year Fiscal Year Amount of Levy Subsequent Years Amount of Levy
2009 6,116 5,734 93.75%8 5,742 93.88%
2010*5,447 4,917 90.27%8 4,925 90.42%
2011*5,597 5,462 97.59%0 5,462 97.59%
2012 5,777 5,656 97.91%0 5,656 97.91%
2013 5,951 5,844 98.20%0 5,844 98.20%
2014 6,287 6,193 98.50%0 6,193 98.50%
2015 6,487 6,396 98.60%0 6,396 98.60%
2016 6,813 6,716 98.58%0 6,716 98.58%
2017 7,093 7,009 98.82%0 7,009 98.82%
2018 7,481 7,389 98.77%0 7,389 98.77%
Source
County Assessor General Ledger, Avenu Insights & Analytics
* Includes 1% secured apportionment only
Fiscal Year of the Levy Total Collections to Date
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Collected within the
123 A-161
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-162
2017-18 Assessed Valuation: $12,286,239,082
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2018 % Applicable (1)Debt 6/30/18
Metropolitan Water District $60,600,000 0.448%$271,488
Los Angeles Community College District 4,165,830,000 1.547%64,445,390
Los Angeles Unified School District 10,604,150,000 0.182%19,299,553
Palos Verdes Unified School District 62,104,101 47.037%29,211,906
City of Rancho Palos Verdes 0 100.000%0
Los Angeles County Regional Park and Open Space Assessment District 26,575,000 0.862%229,077
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $113,457,414
OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations $1,921,992,404 0.862%$16,567,575
Los Angeles County Superintendent of Schools Certificates of Participation 6,500,306 0.862%56,033
Los Angeles County Sanitation District No. 5 Authority 18,807,503 10.436%1,962,751
Los Angeles County South Bay Cities Sanitation District Authority 3,205,696 4.137%132,620
Los Angeles Unified School District Certificates of Participation 195,975,000 0.182%356,675
TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $19,075,654
Less: Los Angeles Unified School District QZABs supported by investment fund 13,468
TOTAL NET OVERLAPPING GENERAL FUND DEBT $19,062,186
TOTAL DIRECT DEBT $0
TOTAL GROSS OVERLAPPING DEBT $132,533,068
TOTAL NET OVERLAPPING DEBT $132,519,600
GROSS COMBINED TOTAL DEBT $132,533,068
NET COMBINED TOTAL DEBT $132,519,600
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2017-18 Assessed Valuation:
Direct Debt 0.00%
Total Direct and Overlapping Tax and Assessment Debt 0.92%
Gross Combined Total Debt 1.08%
Net Combined Total Debt 1.08%
Source
2017-18 Avenu Insights & Analytics
City of Rancho Palos Verdes
Direct and Overlapping Governmental Activities Debt
Current Year
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by
determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
CITY OF RANCHO PALOS VERDES
124 A-163
2009 2010 2011 2012 2013
Debt Limit 1,345,594$ 1,351,617$ 1,382,850$ 1,420,256$ 1,455,636$
Total Net Debt applicable to limit - - - - -
Legal Debt Margin 1,345,594$ 1,351,617$ 1,382,850$ 1,420,256$ 1,455,636$
ble to the limit as a percentage of Debt Limi 0%0%0%0%0%
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
125 A-164
2014 2015 2016 2017 2018
Debt Limit 1,533,583$ 1,583,404$ 1,677,723$ 1,749,390$ 1,832,345$
Total Net Debt applicable to limit - - - - -
Legal Debt Margin 1,533,583$ 1,583,404$ 1,677,723$ 1,749,390$ 1,832,345$
Total Net Debt applicable to the limit as a
percentage of Debt Limit 0%0%0%0%0%
Total Taxable Value 12,215,635$
Debt Limit (15% of total taxable value) 1,832,345
Debt applicable to limit -
Legal Debt Margin 1,832,345$
Cities have a maximum G.O. debt limit of 15% of the assessed valuation of all property within their boundaries.
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
126 A-165
Per Capita **Public
Fiscal Personal Personal Median School
Year Population (1)Income (2)Income (2)Age Enrollment
2008-09 42,720 2,262,493,920 52,961 43.4 12,033
2009-10 42,642 2,250,346,266 52,773 44.9 11,900
2010-11 41,766 2,425,936,344 58,084 44.3 11,928
2011-12 41,897 2,561,016,971 61,127 47.6 11,840
2012-13 42,114 2,618,143,152 62,168 47.8 11,873
2013-14 42,358 2,564,205,491 60,537 47.6 11,700
2014-15 42,564 2,593,892,724 60,941 48.9 11,632
2015-16 43,041 2,461,988,241 57,201 49.6 11,499
2016-17 42,884 2,569,293,654 59,913 49.5 11,428
2017-18 42,723 2,722,513,349 63,725 49.3 11,346
Source
Avenu Insights & Analytics
(1) Population Projections are provided by the California Department of Finance Projections.
**Student Enrollment reflects the total number of students enrolled in the Palos Verdes Unified School District. Other school districts within the City
are not included.
City of Rancho Palos Verdes
Demographic and Economic Statistics
Last Ten Fiscal Years
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.
(2) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.
127 A-166
County City City
Fiscal Unemployment Unemployment County Population
Year Rate (%) (3)Rate (%) (3)Population (1)(% of County)
2008-09 7.5%2.5%10,301,658 0.41%
2009-10 11.6%4.0%10,355,053 0.41%
2010-11 11.9%4.1%9,858,989 0.42%
2011-12 11.1%3.8%9,884,632 0.42%
2012-13 11.0%3.7%9,958,091 0.42%
2013-14 7.6%2.5%10,041,797 0.42%
2014-15 7.1%3.4%10,136,559 0.42%
2015-16 6.7%3.2%10,241,335 0.42%
2016-17 5.2%2.5%10,241,278 0.42%
2017-18 4.1%0.9%10,283,729 0.42%
Source
(1) Population Projections are provided by the California Department of Finance Projections.
(3) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
City of Rancho Palos Verdes
Demographic and Economic Statistics
Last Ten Fiscal Years
Avenu Insights & Analytics
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.
128 A-167
Taxpayer Business Type Taxpayer Business Type
A JOHNSON'S STATIONARY-SUPPLY COMPANY MISCELLANEOUS RETAIL 7-ELEVEN FOOD STORES FOOD MARKETS
ANDREASSEN ENTERPRISES MISCELLANEOUS OTHER ADMIRAL RISTY RESTAURANT RESTAURANTS
AUTOMOBILE CLUB OF SOUTHERN CALIFORNIA MISCELLANEOUS RETAIL AMERICA'S TIRE AUTO PARTS/REPAIR
BASKIN-ROBBINS ICE CREAM STORE FOOD MARKETS ASAKA JAPANESE CUISINE RESTAURANTS
BUSINESS PRINTING INTERNATIONAL LIGHT INDUSTRY CALIFORNIA TURF SUPPORT LIGHT INDUSTRY
CHARLIE GENERAL STORE MISCELLANEOUS OTHER CARL'S JR. RESTAURANTS RESTAURANTS
CRESTWOOD HEALTH & GOVERNMENT CENTINELA FEED & PET SUPPLIES MISCELLANEOUS RETAIL
DESIGN II MISCELLANEOUS RETAIL CHEVRON SERVICE STATIONS SERVICE STATIONS
DU PERON INTERIORS MISCELLANEOUS RETAIL COCO'S RESTAURANTS RESTAURANTS
HIROSHI NAMIKAWA MISC. VEHICLE SALES EL POLLO LOCO RESTAURANTS
HOPKINS PATTERN MISCELLANEOUS OTHER GOOD NIGHT MATTRESS FURNITURE/APPLIANCE
J P MODELS & P J MARINE MISCELLANEOUS OTHER GREEN HILLS MORTUARY & MEMORIA MISCELLANEOUS OTHER
JANICE WEISSMAN MISCELLANEOUS OTHER IHOP RESTAURANTS RESTAURANTS
KATHERINE E.BONANNO MISCELLANEOUS OTHER JACK IN THE BOX RESTAURANTS RESTAURANTS
LEAGUE WOMEN VOTERS MISCELLANEOUS OTHER LOS VERDES COUNTRY CLUB RESTAURANTS
LILA SHAMES LIGHT INDUSTRY MARSHALL'S STORES APPAREL STORES
NATIONAL MEDIA LIGHT INDUSTRY MOBIL SERVICE STATIONS SERVICE STATIONS
NSW MICRO-SYSTEMS OFFICE EQUIPMENT O'REILLY AUTO PARTS AUTO PARTS/REPAIR
PACIFIC SALES KTCHN/BATH CTRS FURNITURE/APPLIANCE RALPH'S GROCERY COMPANY FOOD MARKETS
PERFECTION MISCELLANEOUS OTHER ROLLING HILLS PLASTICS LIGHT INDUSTRY
RON RINKER CUSTOM CLOTHING APPAREL STORES SMART & FINAL FOOD MARKETS
STEPHEN E.MIRICH MISCELLANEOUS OTHER SNAP ON TOOLS MISCELLANEOUS OTHER
SUNNY INTERIORS FURNITURE/APPLIANCE TRADER JOE'S FOOD MARKETS
TC TEL OFFICE EQUIPMENT TRUMP NATIONAL GOLF CLUB MISCELLANEOUS RETAIL
THE POPCORN MAN FOOD PROCESSING EQP WATERFRONT EQUIPMENT TECH HEAVY INDUSTRY
Source
Avenu Insights & Analytics
City of Rancho Palos Verdes
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2017-18 2008-09
129 A-168
2017-18 2015
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Palos Verdes Peninsula Unified School District 1,430 1 7.15%1,421 1 7.36%
Terranea Resort Hotel*1,257 2 6.29%873 2 4.52%
Belmont Corp Ltd ( Belmont Village of Rancho)180 3 0.90%139 5 0.72%
Trump National Golf Club*168 4 0.84%190 4 0.98%
Marymount College 160 5 0.80%270 3 1.40%
Canterbury 150 6 0.75%115 6 0.60%
City of Rancho Palos Verdes*137 7 0.69%
Ralphs Store #720 105 8 0.53%95 8 0.49%
Green Hills Memorial Park 75 9 0.38%85 9 0.44%
American Golf Corp ( Los Verdes Golf Course)71 10 0.36%70 10 0.36%
Trader Joe's 96 7 0.50%
Subtotal of Principal Employers 3,733 18.67%3,354 17.38%
Total City Employment (1)20,000 19,300
Source
Avenu Insights & Analytics
*Count includes both full and part time employees
Trader Joe's Store's (#57 & #233) choose to no longer participate
(1) Total City Labor Force is provided by EDD Labor Force Data
City of Rancho Palos Verdes
Principal Employers
Current Year and Three Years Ago
130 A-169
(THIS PAGE INTENTIONALLY LEFT BLANK)
A-170
2006 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function
General Government 47 58 53 54 52 53 54 60 62 62 64
Recreation Part-Time 10 11 16.5 18 16.5 16 22 25 29 29 30
Total 57 69 69.5 72 68.5 69 76 85 91 91 94
Source
City Budget documents and Payroll records
City of Rancho Palos Verdes
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
131 A-171
2009 2010 2011 2012 2013
Function
Administration
Employee Resignations 4 9 5 8 7
Workers Compensation Claims 2 5 3 3 3
Liability Claims 13 13 14 11 14
Budget Adjustments 18 21 17 11 24
Business Licenses Issued 1,819 1,629 1,891 1,294 1,868
Web Site Page Views (1)3.8 mil 2.9 mil 2.8mil 3.0mil 3.1mil
Public Safety
Part I Crime Rates (per 10,000 population)102 110 143 131 149
Public Works
Solid Waste Diversion Rates (2)4.1lbs/person/day 4.2lbs/person/day 4.2lbs/person/day 4.2lbs/person/day 2.87lbs/person/day
Pavement Rating 85 85 85 85 84
Parks and Recreation
Park Events 825 690 580 582 765
Class Meetings at Parks 2,708 2,398 2,313 1,587 1,202
Docent Led Nature Hikes 105 103 105 104 121
Community Development
Building Permits Processed 1,404 1,243 1,432 1,221 1,403
Plan Checks 226 154 161 161 268
Municipal Code Violations Closed 339 138 371 321 312
Source
City Departments
DNA: Data Not Available
(1): The City launched a new website and with it, the methodology used to count total page views was modified.
(2): A new system of measuring AB939 compliance was implemented in 2008 with the passage of SB1016. This changed the previous diversion
calculation method to the new disposal-based indicator - the per capita disposal rate. The per capita disposal target is based on the average of 50 percent of
generation in 2003 through 2006, expressed in terms of per capital disposal.
City of Rancho Palos Verdes
Operating Indicators by Function
Last Ten Fiscal Years
132 A-172
2014 2015 2016 2017 2018
Function
Administration
Employee Resignations 14 10 6 6 27
Workers Compensation Claims 13282
Liability Claims 9 11 28 6 3
Budget Adjustments 15 15 18 48 80
Business Licenses Issued 1,997 2,134 2,012 1,939 1,902
Web Site Page Views (1)3.3mil 426,772 *403,704 536,568 445,633
Public Safety
Part I Crime Rates (per 10,000 population)107 134 106 Not available at this time 113
Public Works
Solid Waste Diversion Rates (2)2.84lbs/person/day 3.15lbs/person/day 3.08lbs/person/day 2.46lbs/person/day 2.46lbs/person/day
Pavement Rating 82 82 84 84 84
Parks and Recreation
Park Events 631 639 810 829 1,281
Class Meetings at Parks 1,233 1,400 1,025 1,030 922
Docent Led Nature Hikes 109 103 94 108 113
Volunteer Events (3)35 61
Volunteers (3)764 1,806
Volunteer Hours (3)2,486 5,919
Open Space Mgmt. Public Contacts (3)23,101 33,306
Open Space Mgmt. Rules Enforced (3)1,367 1,925
Open Space Mgmt. Maintenance / Projects (3)782 1,219
Community Development
Building Permits Processed 1,492 1,558 1,758 1,665 1,985
Plan Checks 264 255 289 289 292
Municipal Code Violations Closed 392 358 505 432 457
Source
City Departments
DNA: Data Not Available
(1): The City launched a new website and with it, the methodology used to count total page views was modified.
(3) Began tracking this indicator in 2017.
(2): A new system of measuring AB939 compliance was implemented in 2008 with the passage of SB1016. This changed the previous diversion calculation
method to the new disposal-based indicator - the per capita disposal rate. The per capita disposal target is based on the average of 50 percent of generation in 2003
through 2006, expressed in terms of per capital disposal.
City of Rancho Palos Verdes
Operating Indicators by Function
Last Ten Fiscal Years
133 A-173
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function
Administration
Computer Workstations 92 101 92 88 93 98 114 138 140 144
Public Works
Street Miles 143 143 143 144 141 141 149 149 149 149
Traffic Signals 16 16 16 18 15 15 15 15 15 15
Parks and Recreation
Parks 16 15 15 15 15 16 16 16 16 17
Community Development
Vehicles Used for Inspections 5 5 5 5 5 4 4 4 2 2
Source
City Capital Asset Records
Public safety services are contracted with other agencies. The City does not own any public safety capital assets.
Last Ten Fiscal Years
Capital Asset Statistics by Function
City of Rancho Palos Verdes
134 A-174
2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
- 1 -
To the Honorable Mayor
and Members of City Council
of the 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 (the City), as of and for the year ended June 30, 2018. Professional standards require that we
provide you with information about our responsibilities under generally accepted auditing standards
and Government Auditing Standards, as well as certain information related to the planned scope and
timing of our audit. We have communicated such information to you in our engagement letter dated
June 27, 2018, and our letter on planning matters dated July 24, 2018. Professional standards also
require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements. No new
accounting policies were adopted and the application of other existing policies was not changed during
the year ended June 30, 2018. We noted no transactions entered into by the City during the year for
which there is a lack of authoritative guidance or consensus. All significant transactions have been
recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected. The most sensitive estimates affecting the financial
statements were:
a. Management’s estimate of the fair value of investments is based on quoted prices in active
markets. When quoted prices in active markets are not available, fair values are based on
evaluated prices received by the City’s broker or custodian.
b. Management’s estimate of the value of capital assets (infrastructure assets) is based on industry
standards.
c. The estimated useful lives of capital assets for depreciation purposes which are based on
industry standards.
B-1
- 2 -
Significant Audit Findings (Continued)
Qualitative Aspects of Accounting Practices (Continued)
d. The annual required contributions, pension expense, net pension liability, and corresponding
deferred outflows of resources and deferred inflows of resources for the City’s public defined
benefit plans with CalPERS are based on actuarial valuations provided by CalPERS.
We evaluated the key factors and assumptions used to develop these estimates in determining that they
were reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. The most sensitive disclosure affecting the financial statements was reported
in Note 8 regarding the City’s defined benefit pension plans.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing
our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during
the audit, other than those that are trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were material,
either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 31, 2018.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation
involves application of an accounting principle to the City’s financial statements or a determination of
the type of auditor’s opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
B-2
- 3 -
Significant Audit Findings (Continued)
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the City’s auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses
were not a condition to our retention.
Other Matters
We applied certain limited procedures to management’s discussion and analysis, the schedule of
proportionate share of the net pension liability, and the schedule of pension contributions, identified as
Required Supplementary Information (RSI) that supplements the basic financial statements. Our
procedures consisted of inquiries of management regarding the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We did not audit the RSI and do not express an opinion or provide any assurance on the
RSI.
We were engaged to report on the combining statements and individual fund schedules (supplementary
information), which accompany the financial statements but are not RSI. With respect to this
supplementary information, we made certain inquiries of management and evaluated the form, content,
and methods of preparing the information to determine that the information complies with accounting
principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period, and the information is appropriate and complete in relation to our audit
of the financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the basic financial statements or to the basic financial
statements themselves.
We were not engaged to report on the introductory section and statistical section which accompany the
financial statements but are not RSI. 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 it.
Regulatory Updates
Procurement Rules under the Uniform Guidance
The Uniform Guidance has different procurement rules than those previously required by the Circular
A-133. Due to the work required by nonfederal entities to implement these new rules, a two-year grace
period was given. In May 2017, an additional one-year grace period was given. Beginning July 1,
2018, nonfederal entities will be required to comply with all of the Uniform Guidance procurement
rules. Included in these new rules is the requirement for written policies and procedures.
Commencing with the fiscal year 2018-2019 audits, auditors will request the written policies of the
nonfederal entity for all single audits and review the procurement policies and procedures for
compliance with the Uniform Guidance procurement rules.
B-3
- 4 -
Restriction on Use
This information is intended solely for the use of management, the City Council, and others within the
City and is not intended to be and should not be used by anyone other than these specified parties.
Irvine, California
December 31, 2018
B-4