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CC SR 20200602 01 - FY2020-21 Draft Budget and Five Year CIP PUBLIC HEARING Date: June 2, 2020 Subject: Consideration and possible action to conduct a public hearing on the Fiscal Year 2020-21 Draft Budget for all City’s funds and the Five-Year Capital Improvement Program. Recommendation: (1) Conduct a public hearing on the possible adoption of the FY 2020-21 Draft Budget of all City’s funds, excluding the Improvement Authorities, and the Five-Year Capital Improvement Program; (2) Determine that the utility users’ tax (UUT) rate of 3% should continue to be maintained for FY 2020-21 as a necessary revenue source for the City’s operating and capital improvements; and (3) Continue the public hearing to June 16, 2020. 1. Report of Notice Given: Deputy City Clerk 2. Declare Public Hearing Open: Mayor Cruikshank 3. Request for Staff Report: Mayor Cruikshank 4. Staff Report & Recommendation: Trang Nguyen, Director of Finance 5. Council Questions of Staff (factual and without bias): 6. Testimony from members of the public: The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Cruikshank 8. Council Deliberation: The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter. 9. Council Action: The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional testimony; continue the matter to a later date for a decision. CITY COUNCIL MEETING DATE: 06/02/2020 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to conduct a public hearing on the Fiscal Year 2020- 21 Draft Budget for all City’s funds and the Five-Year Capital Improvement Program. RECOMMENDED COUNCIL ACTION: (1) Conduct a public hearing on the possible adoption of the FY 2020-21 Draft Budget of all City’s funds, excluding the Improvement Authorities, and the Five- Year Capital Improvement Program; (2) Determine that the utility users’ tax (UUT) rate of 3% should continue to be maintained for FY 2020-21 as a necessary revenue source for the City’s operating and capital improvements; and (3) Continue the public hearing to June 16, 2020. FISCAL IMPACT: The Draft Citywide FY 2020-21 Budget includes total revenues of about $35.1 million and total expenditures of almost $35.7 million, excluding transfers and Improvement Authorities. The total General Fund revenues of almost $29 million and expenditures of $26.8 million, excluding transfers. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): None ORIGINATED BY: Christopher Browning, Senior Administrative Analyst Vina Ramos, Interim Deputy Director of Finance REVIEWED BY: Trang Nguyen, Director of Finance APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. FY 2020-21 Draft Budget Summary (page A-1) B. FY 2020-21 Draft CIP Budget and 5-year CIP (page B-1) C. Public Comment from Ms. Sunshine (page C-1) 1 BACKGROUND: The City’s budget is a financial plan based on anticipated revenues and expenditures in a fiscal year starting July 1 through June 30. Each year, the City’s budget is prepared applying the City’s long tradition of fiscal responsibility, prioritizing public safety, and providing the highest possible service levels to the community. Like other local governments across the country, this year’s budget process incorporated the projected financial impacts from the COVID-19 pandemic. One of the City’s main sources of revenues estimated to be impacted the most is Transient Occupancy Tax (TOT). The sudden and unprecedented drop in these revenues have resulted in reassessment of the Capital Improvement Program (CIP), focusing on projects that were ranked the highest. The rankings on projects were based on available funding sources in FY 2020 - 21, immediate needs centered on public safety concerns, mandated by federal/state/local governments, and supports the City Council Goals. Attributed to the City’s solid financial foundation, f inancially conservative approach, and stable Property Tax revenues, the City’s operating fund, the General Fund, is estimated to end FY 2020-21 with a surplus of approximately $8 million, after applying the 50% City Council’s Policy Reserve of $13.4 million. Due to the recent economic downturn, although the FY 2020-21 General Fund is estimated to remain with a healthy fund balance, Staff recognizes that there will be fiscal challenges in the coming years that the City will need to prepare for. In order to withstand the financial implications of COVID- 19, it is more crucial now, and in future years, for the City to continue to be fiscally prudent and produce a structurally balanced operating budget. Additionally, it is important to mention that the FY 2020-21 Draft Budget is a financial plan for one fiscal year. The City’s long-term financial outlook is documented in the Five-Year Model, which forecasts economic conditions including scenarios of future sources of revenues and future spending. The Five-Year Model is an additional tool that the City utilizes annually to engage discussions and provide guidance with decision making related to the City’s future financial health. The Five-Year Model will be presented to the City Council this evening as a separate agenda item. After completing two FY 2020-21 Budget Workshops in April and the review of the Preliminary Budget in May, the City Council is being presented this evening, as a public hearing, the FY 2020-21 Draft Budget. In summary, the City Council’s budget process consists of the following steps: The Budget W orkshops document the budget assumptions based on mid-year figures that frame the following year's budget. Prior to presenting to the City Council, Staff reports the assumptions, projects, and programs to the City Council’s appointed Committees – Finance Advisory Committee (FAC), Infrastructure Management Budget Workshops April 13 (GF) April 27 (CIP) Budget Adoption June 16 Budget Public Hearing June 2 Preliminary Budget May 19 2 Committee (IMAC), and the Planning Commission (PC). On April 13, 2020, during the first Budget Workshop, Staff presented the year-end estimates for FY 2019-20 along with assumptions and estimates that would be used to develop the proposed FY 2020 - 21 General Fund Operating Budget. Staff reported an estimated revenue loss from COVID-19 of $2.6 million, which is then offset by the identified savings of over $1.3 million, totaling a net negative impact of $1.2 million to the FY 2019-20 fund balance. For the FY 2020-21 Proposed Budget, Staff projected revenues at $28.8 million, which accounted for the declined revenues of $3.7 million. To mitigate the estimated revenue loss in FY 2020-21, Staff also presented a total of estimated savings of $3 million in expenditures, with the total budget of $29.5 million. Additionally, Staff presented the Five-Year Model and reviewed the assumptions used, highlighting the areas of concerns for further discussion relating to the General Fund forecasted revenues and expenditures. Based on this discussion, the City Council directed Staff to further identify savings and to prepare a balanced operating budget for FY 2020-21. The second Budget Workshop was held on April 27, 2020, to review and discuss the FY 2020-21 CIP Budget and the City’s CIP 5-Year Program. At this workshop, Staff presented the City Council a reassessed list of projects due to the estimated drop in TOT revenue, reducing the General Fund transfers to CIP by $1.3 million in FY 2019-20 and $1.8 million in FY 2020-21. Staff also provided the City Council a status of the different categories of the CIP Projects including Completed Projects (Category I), On - going Projects (Category II), Proposed Deferred Projects (Category III), and Proposed New Projects (Category IV). As a result, the City Council provided Staff with direction to defer the Storm Room Improvement (City Hall) project to a future date and to identify funding sources to bring forward the Palos Verdes Drive East Widening and Path Improvement Project in an earlier fiscal year because of public safety concerns. The total proposed sixteen (16) projects in CIP for FY 2020-21 is almost $4.5 million supported by CIP Fund, Measure R, Proposition C, and 1911 Act Lighting. The Preliminary Budget meeting reports the changes from the Budget Workshops to the Preliminary Budget based on third quarter figures, including the Capital Improvement Program (CIP) Fund, Special Revenue Funds, and the Equipment Replacement Fund. In accordance with City Council Policy No.45, the FY 2020 -21 Preliminary Budget presented on May 19, 2020 to the City Council is a structurally balanced budget, where recurring revenues are greater than or equal to recurring expenditures. Staff presented the changes based on the discussion and additional direction provided by the City Council at the two budget workshops held in April. Staff presented the FY 2020 -21 Proposed Budget with a positive change in revenues by $410,000 and an additional budget savings of $721,500 in the General Fund. The revised estimated revenues reported at this meeting was approximately $29.2 million and $28.8 million in expenditures, net of transfers. The total changes to the budget since the budget workshops have resulted in an increase of $1.1 million over estimates in the fund balance, ending with a surplus of $8 million in FY 2020-21. The final phase of the City Council’s budget process are two duly noticed public hearings on the budget prior to its adoption, with the first hearing being presented this 3 evening. The budget public hearing is a comprehensive report that documents the forthcoming year's budget. The analysis presented in the report are comparing between the draft budgets to the estimated year-end results. Additionally, this report highlights the summary for FY 2019-20 General Fund Balance and the FY 2020-21 Budget Assumptions for General Fund, Capital Infrastructure Project Fund, Special Revenue Funds, and Equipment Replacement Fund. DISCUSSION: FY 2019-20 General Fund Balance As presented at the Preliminary Budget on May 19, 2020, the General Fund revenues are estimated to end at approximately $29.3 million and expenditures are estimated to end slightly over $29 million, net of transfers. The estimated results are inclusive of almost $3.7 million in savings identified during midyear and third quarter reviews. The majority of the estimated savings are from the unfilled vacant positions, cost containment measures (i.e. reassessed contract services and program offered), and reduced transfer to CIP from the revenues loss in TOT. The General Fund is projected to end the year with an estimated fund balance of $21.1 million and after setting aside the required 50% reserve of $13.1 million, there will be an excess reserve of over $7.9 million. Table 1 – FY 2019-20 YE General Fund Balance Estimates FY 2020-21 Draft Budget On May 19, 2020, Staff presented the Preliminary Budget at a regular scheduled City Council meeting. At this meeting, Staff reported on the budget changes based on FY 19-20 Current Budget Post COVID-19 FY 19-20 YE Estimates 3rd Quarter FY 19- 20 YE Estimates FY 19-20 Variances Beginning Fund Balance - 7/1/2019 20,788,547 20,788,547 20,788,547 - Add: Revenues 31,423,400 29,043,100 29,038,400 (2,385,000) Add: Transfers In 275,000 275,000 275,000 - Total Revenues 31,698,400 29,318,100 29,313,400 (2,385,000) Less: Expenditures (28,638,409) (27,278,669) (26,271,512) 2,366,897 Less: Transfers to CIP (3,976,900) (2,617,300) (2,617,300) 1,359,600 Less: Other Transfers Out (140,000) (140,000) (140,000) - Total Expenditures (32,755,309) (30,035,969) (29,028,812) 3,726,497 Ending Fund Balance - 6/30/2020 19,731,638 20,070,678 21,073,135 1,341,497 50% Reserve Policy 14,319,205 13,639,335 13,135,756 (1,183,449) Unrestricted Excess/(Deficit) Reserve 5,412,434 6,431,344 7,937,379 2,524,946 4 direction received from the City Council from the two Budget Workshops that were held in April. The results and direction from the Budget Workshops and the Preliminary Budget meeting are combined to develop the FY 2020-21 Draft Budget. The following sections of this report will present the detailed explanation of the budget assumptions including General fund, CIP Fund, Special Revenue Funds, and Equipment Replacement Fund. FY 2020-21 General Fund Budget Assumptions/Changes FY 2020-21 Revenues For FY 2020-21, Staff is projecting an overall decrease of $68,500 or -0.2% in General Fund operating revenues (net of transfers) over the FY 2019-20 updated year-end estimates at third quarter. Table 2 – General Fund FY 2019-20 Preliminary Revenue Budget Below is the summary of the FY 2020-21 General Fund Preliminary Revenues compared to the FY 2019-20 Current Budget and FY 2019-20 year-end estimates. Property Tax This revenue category is projected to increase by 2.1%, or $288,000, over the FY 2019- 20 year-end estimate. Property Tax continues to be the largest and historically the most stable revenue source in the City, growing by assessed values based on sales and home remodeling, and capped at 2% annually once assessed. Its share of all General Fund revenue has increased from 44% to roughly 49% with the decrease in TOT revenue due to the COVID-19 pandemic. There was initial concern that property tax Revenue Current Budget Year-End Estimate Draft Budget Property Tax $13,975,500 $13,841,700 $14,129,700 $288,000 2.1% Transient Occupancy Tax 5,541,300 4,181,700 3,762,500 (419,200) -10.0% Sales Tax 2,529,000 2,260,300 2,312,300 52,000 2.3% Permits & Fees 2,167,800 1,819,200 1,819,200 0 0.0% Franchise Tax 2,044,400 2,150,000 2,167,500 17,500 0.8% Utility Users Tax 1,942,300 2,099,700 2,099,700 0 0.0% Other Taxes & Misc. Revenues 3,223,100 2,685,800 2,679,000 (6,800) -0.3% Subtotal $31,423,400 $29,038,400 $28,969,900 ($68,500) -0.2% Transfer 275,000 275,000 230,000 (45,000) -16.4% Total Revenues $31,698,400 $29,313,400 $29,199,900 ($113,500) -0.4% FY 2019-20 FY 2020-21 FY 20-21 Draft Budget vs. FY 19-20 YE Estimate 5 revenue could be impacted by the pandemic, however, property tax receipts typically lag events by 12 to 18 months which means that the effects of the pandemic may not be seen until FY 2021-22. It appears that the value for homes that have sold this year are holding, however, more data is still needed. Over the next 6 to 12 months more data should be available to help staff revise property tax assumptions if necessary. Property Taxes FY 2019-20 Current Budget: $13,975,500 FY 2019-20 Year-End Estimate: $13,841,700 FY 2020-21 Draft Budget: $14,129,700 Transient Occupancy Tax (TOT) TOT is projected to decrease by 10% or ($419,200) from the year-end estimate. The COVID-19 pandemic forced the closure of Terranea Resort which contributes over 96% of the City’s total TOT revenue. In mid-March Terranea announced the temporary closure of their resort and all amenities beginning March 19, 2020. At the time of the preparation of this staff report, June 12, 2020 is the current scheduled date for the resumption of operations. However, once Terranea reopens to the public it is not expected to return to capacity levels seen during similar periods in previous years. Staff has made significant reductions to TOT revenue estimates for FY 2020 -21, cutting revenue projections by 70% during the first quarter and 50% during the second quarter. TOT revenue is not projected to return to normal levels until the start of the third quarter, January 2021. The City’s TOT revenue estimate was reduced from $5.7 million to just over $3.7 million, a decrease of nearly $2 million. Transient Occupancy Tax FY 2019-20 Current Budget: $5,541,300 FY 2019-20 Year-End Estimate: $4,181,700 FY 2020-21 Draft Budget: $3,762,500 Sales and Use Tax This revenue category is projected to increase by 2.3% or $52,000 from the year-end estimate. This projection was developed by staff with the help of the City's Sales Tax consultant, HdL. All though sales tax revenue is projected to increase in FY 2020-21, this is in comparison to FY 2019-20 year-end estimates which experienced a 10% Q1 Q2 Q3 Q4 % of Original FY 19-20 Estimated Revenue 30% 50% 100% 100% FY 2020-21 6 decrease due to the COVID-19 pandemic. The COVID-19 health crisis caused the temporary closure of Terranea Resort, as mentioned above. Terranea and local restaurants, which have been significantly impacted as well, comprise nearly half of all sales tax revenue. A gradual recovery of sales tax revenue is expected as the Stay-at- Home order is relaxed and as revenue continues to increase from the County Pool due to increased online retail activity and the impact of the South Dakota v. Wayfair case provides distribution of online sales tax revenue to local agencies. Sales and Use Tax FY 2019-20 Current Budget: $2,529,000 FY 2019-20 Year-End Estimate: $2,260,300 FY 2020-21 Draft Budget: $2,312,300 Permits & Fees Revenue is projected to remain flat when compared to FY 2019-20 year-end estimates. The COVID-19 pandemic, Stay-at-Home order, and social distancing measure resulted in a significant decrease in the number of permits generated and therefore reducing permit revenue. The Permits & Fees revenue estimates decreased by almost $350,000. Permits & Fees FY 2019-20 Current Budget: $2,167,800 FY 2019-20 Year-End Estimate: $1,819,200 FY 2020-21 Draft Budget: $1,819,200 Franchise Tax The City receives payments from franchisees for the use of municipal rights-of-way. This revenue source is primarily received from Southern California Edison and Southern California Gas Company. The main drivers for this revenue calculation are consumption and the price of natural gas. Staff uses historical data and industry projections for this revenue estimate. FY 2020-21 revenue is projected to increase slightly by 0.8% or $17,500 primarily due to an increase in EDCO trash fees. Franchise Taxes FY 2019-20 Current Budget: $2,044,400 FY 2019-20 Year-End Estimate: $2,150,000 FY 2020-21 Draft Budget: $2,167,500 Utility User Tax (UUT) UUT is projected to remain flat when compared to the FY 2019-20 year-end estimate. UUT is dependent on outside factors including weather conditions, consumption of 7 utilities, natural gas prices and rate increases. It is difficult to predict the impact of these factors over the long term. Staff used historical data, information available pertaining to the price of natural gas and the projected increases estimated by the Bureau of Labor Statistics for the Consumer Price Index for All Urban Consumers (CPI-U) in the calculation of this projection. UUT FY 2019-20 Current Budget: $1,942,300 FY 2019-20 Year-End Estimate: $2,099,700 FY 2020-21 Draft Budget: $2,099,700 Other Taxes & Miscellaneous Revenues An overall decrease of 0.3% or ($6,800) is projected for FY 2020-21. This revenue category is comprised of twenty-eight separate revenue sources, the largest being business license tax, golf tax, interest earnings, and rentals/leases. This is a revenue source that can be difficult to predict due to the wide variety of revenue sources that are included in this category. The largest decrease in year-over-year revenue from FY 2019-20 to FY 2020-21 was from miscellaneous revenue which is expected to decrease by $90,000 due to the final payment from the Green Hills settlement agreement being received in FY 2019-20. This decrease was expected to be partially offset by an increases in revenue from program/event fees, traffic tickets, and redevelopment agency loan repayments. The Recreation and Parks departments is one of the largest contributors to this revenue source through rentals/leases, programs/event fees, parking lot fees, and PVIC sales. As with many of the other revenue sources mentioned in this staff report, it is still too early to know the full impacts the COVID-19 health crisis will have on this revenue source. However, revenues across the board in this category are projected to decrease by over 25% as a result of the health crisis. These losses were partially offset by a projected increase of $105,700 in the annual payment received from the Successor Agency. Each fiscal year, the City receives a portion of the property tax revenue from the area covered by the Successor Agency, formerly known as the Redevelopment Area (RDA), for the repayment of the consolidated loans that were made to the RDA for the Portuguese Bend and Abalone Cove landslide areas. For FY 2020-21, staff provided documentation requesting an increase in the annual payment which was approved. Staff will continue to monitor and update the year-end estimates and next year budget accordingly. Other Taxes & Miscellaneous Revenues FY 2019-20 Current Budget: $3,223,100 FY 2019-20 Year-End Estimate: $2,685,800 8 FY 2020-21 Draft Budget: $2,679,000 Chart 1 – General Fund FY 2020-21 Revenue Budget Chart 2 – General Fund FY 2020-21 Revenue Budget by Category 9 FY 2020-21 General Fund Expenditures Overall, the General Fund expenditures, including transfers out, are anticipated to decrease by 12% or ($3.9) million over the FY 2019-20 current budget or a decrease of 1% or ($227,900) over the FY 2019-20 year-end estimates. In light of the financial impacts of COVID-19, the City’s cost saving measures were necessary to maintain a healthy fund balance that will support financial sustainability for the City’s future. At the May 19 meeting, Staff presented the FY 2020-21 Preliminary Budget with a combined savings and reductions of over $3.9 million when compared to the FY 2019-20 Current Budget. Of this amount, approximately $1.8 million savings would come from contracting and consulting services, personnel vacancies, and deferring/suspending non-essential services. The reduced budget of about $2 million is from decreasing TOT Transfers to CIP and the remaining $110,000 is from the reduction of Transfers to Subregion One Fund and Improvement Authority Portuguese Bend. Chart 3 and Table 3 below displays the comparison of the budget for FY 2019-20 Current Budget, FY 2019- 20 Year-End Estimates, and FY 2020-21 Draft Budget. Chart 3 – Fiscal Year 2019-20 and 2019-20 Draft Budget Comparison 10 Table 3 – Fiscal Year 2019-20 and 2020-21 Draft Budget Comparison (Including Transfers-Out) Personnel Costs Salaries and benefits are estimated to increase by 29% or $1.7 million over year-end estimates. While the comparison between FY2020-21 Draft Budget to FY 2019-20 year-end estimates depicts a significant increase, this is mainly due to the additional estimated savings of over $2 million identified to end FY 2019-20 as a result of the COVID-19 health crisis. The majority of the projected personnel savings are a combination of unspent budget from vacant full-time and part-time positions that were not filled during the year, savings from the delayed recruitments due to the Stay-at- Home Order, and savings from park closures and cancellation of special events. Salaries and Benefits accounts for $11.1 million or $ 31% of the FY 2020-21 Draft Budget. The City employs approximately 150 full-time and part-time employees, or 74 Full-Time Equivalent (FTE) positions. In FY 2020-21, there are 68 FTE proposed funded FY 2020-21 Expenditure FY 19-20 Current Budget FY 19-20 Year-End Estimates FY 20-21 Draft Budget Salaries 7,621,200$ 6,820,000$ 8,147,800$ 1,327,800$ 16% Benefits 2,935,900 2,561,400 2,957,200 395,800$ 13% Sheriff Contract 6,820,500 6,820,500 7,222,400 401,900$ 6% Preserve 309,500 361,500 - (361,500)$ 0% Legal Services 905,000 1,089,900 975,000 (114,900)$ -12% Professional/Technical 3,877,500 3,183,300 2,700,500 (482,800)$ -18% Repairs & Maintenance 3,632,900 3,192,000 2,780,400 (411,600)$ -15% Supplies 826,900 666,800 557,600 (109,200)$ -20% Training/Conference 396,500 244,900 311,400 66,500$ 21% Emergency Operation Center - 270,000 - (270,000)$ 0% Misc. Expenses 1,272,800 1,061,200 1,184,600 123,400$ 10% Total Operating Expenditures 28,598,700 26,271,500 26,836,900 565,400 2% CIP Transfers Out 3,976,900 2,617,300 1,934,000 (683,300)$ -35% Misc. Transfers Out 140,000 140,000 30,000 (110,000)$ -367% Total Expenditures 32,715,600$ 29,028,800$ 28,800,900$ (227,900)$ -1% Variance FY 20-21 Draft Budget vs. FY 19-20 Year-End FY 2019-20 11 positions, while freezing the remaining 6 full-time vacant positions for a one-time cost savings. Additionally, to realize additional savings, of the 68 FTE proposed funded positions, 6 would be partially funded by staggering the recruitments throughout the year. In summary, the main assumptions used to develop the Salaries and Benefits in FY 2020-21 are as follows:  $137,000 for COLA at 1.9%, and $165,400 for merit/merit bonus at an average of 2.25% (based on the recently adopted MOU for the employee association).  Savings of ($671,300) for the six (6) unfunded positions - Staff Assistant, Permit Technician, Assistant Planner, Associate Engineer, Senior Engineer, and Executive Assistant.  Savings of ($291,800) for the six (6) partially funded positions through staggered recruitments - Assistant Planner, Associate Planner, Building Official, Deputy Director of Community Development, Deputy Director of Finance, and Deputy Director of Public Works.  Savings of ($109,000) for part-time employees by streamlining daily operations.  Rate increase of 8% in benefits, which include health, dental, and vision.  CalPERS required payment of $683,200 for the Normal Rate. Of this amount, $291,300 is for Tier 1, $188,800 for Tier 2, and $203,100 for Tier 3. The amounts include increases of less than 1% for Tier 1 and about 0.7% for Tiers 2 and 3.  CalPERS required payment of $835,200 for Unfunded Liability. Of this amount, $807,400 is for Tier 1, $15,400 for tier 2, and $12,400 for Tier 3. The amounts include increases of about 10.7% for Tier 1 and less than 0.6% for Tiers 2 and 3. Personnel – Salaries and Benefits FY 2019-20 Current Budget: $10,557,100 FY 2019-20 YE Estimates: $ 9,381,400 FY 2020-21 Draft Budget: $11,105,000 Public Safety Public Safety is projected to increase by 6% or $401,900 when compared to both the current budget and the year-end estimates. The increase would be offset by the savings of $361,500 from changing the staffing in the Preserve from Deputy Sheriffs to Park Rangers that started in the middle of FY 2019-20. The significant savings are a result of ongoing efforts of the City in reducing operational costs. It should also be noted that Contract Cities and the City have submitted letters to the Los Angeles County Board of Supervisors requesting to freeze the rate increases of the Sheriff contract in the next two (2) years because of the financial impacts incurred by cities due to current health crisis. At this time, the estimated rate increase remains in the budget until the City receives more information from the Sheriff Department. Staff will report and update the budget accordingly when more information becomes available. 12 Sheriff Contract FY 2019-20 Current Budget: $6,820,500 FY 2019-20 YE Estimates: $6,820,500 FY 2020-21 Draft Budget: $7,222,400 Sheriff Preserve FY 2019-20 Current Budget: $309,500 FY 2019-20 YE Estimates: $361,500 FY 2020-21 Draft Budget: $0 Legal Services The City contracts with the firm of Aleshire & Wynder, LLP for general legal services, litigation, code enforcement, and labor negotiations. For FY 2020-21, the legal services are projected to decrease by $12% or ($114,900) when compared to the year-end estimates. The decreased amount over year-end estimates are mainly from anticipating lower litigations in FY 2020-21. Additionally, Aleshire & Wynder, LLP have volunteered to reduce City’s legal costs by rolling down their hourly rates that would save the City of about $15,000 in FY 2020-21. Legal Services FY 2019-20 Current Budget: $905,000 FY 2019-20 YE Estimates: $1,089,900 FY 2020-21 Draft Budget: $975,000 Non-Personnel Costs Non-personnel costs such as professional/technical services, repair and maintenance, supplies, training and conferences, and miscellaneous/other expenses are projected to decrease by 14% or ($1 million) over year-end estimates. The significant decrease is another result from the City taking the necessary and prudent steps reviewing operational spending to maximize budget that would not disrupt the current service level to the community. Each department has carefully reviewed their non-personnel budgets and identified areas where expenditures could be reduced further due to, among other things, the decreased in activity caused by the Stay-at-Home Order. The savings are combination of savings from professional and technical, repairs and maintenance, supplies and equipment, special events, training, meetings, conferences, and election costs. A portion of the savings are also from purchase orders that were carried over from the prior year. Professional/Technical Services The Professional/Technical Services category includes specialized consulting services such as election, grant management, emergency preparedness, information technology, RPVtv, employment, financial, planning, and engineering. Additionally, this category include staff augmentation services to address the staffing shortages from the unfilled 13 vacant positions. In FY 2019-20, the savings from salaries were offset by approximately $617,000 from staff augmentation services. In summary, the Professional/Technical Services is projected to have a net decrease of 18% or ($482,800) to the year-end estimates based on the following main assumptions:  City Clerk – estimated to decrease by $225,000 from year-end. The decreased is from the lower election costs for the November 2020 election when compared to the November 2019 election.  Public Works – estimated savings of $301,600 to year-end. The savings are mainly attributed to augmenting of services including Fuel Modification and Traffic Safety due to the number of vacancies in the department in FY 2019-20. Additionally, Staff anticipates decreased activity in inspections and engineering due to the current economic downturn.  Community Development – expected to have a net decrease of $172,000 which is also attributed to the augmentation of planning and building safety services in FY 2019-20 due to the number of vacancies in the department. Staff also anticipates decreased permit activities.  The remaining savings are from City Administration and Recreation and Parks from one-time services in FY2019-20 but will not be needed in FY 2020-21. Professional/Technical Services FY 2019-20 Current Budget: $3,877,500 FY 2019-20 YE Estimates: $3,183,300 FY 2020-21 Draft Budget: $2,700,500 Repair/Maintenance Services This category includes repair and/or maintenance services for City owned properties and public right-of-way, mainly managed by the Public Works Department. The services budgeted in General Fund are generally routine repairs and maintenance and for emergency services including service requests from residents. These services include annual repairs and maintenance for hardware, software, City Hall, streets, parks, trails, open space, trees, traffic, storm water, and vehicles. Additionally, the fuel modification program and City-wide utilities are included in this category. Overall, Repair/Maintenance is projected to decrease by 15% or ($411,600) to year- end. The decrease from year-end estimates is primarily due to the one-time grant to Palos Verdes Peninsula Land Conservancy (PVPLC) for the Fuel Modification program approved in FY 2019-20 of about $500,000. 14 Repair/Maintenance Services FY 2019-20 Current Budget: $3,632,900 FY 2018-20 YE Estimates: $3,192,100 FY 2020-21 Draft Budget: $2,780,400 Supplies The Supplies category include office supplies, forms, postage, small tools and equipment. Overall, Supplies are projected to decrease by 20% or (109,200) to the year-end estimates. The decrease to both the year-end estimates and the current budget are from cost saving measures, one-time purchases in the FY 2019-20, and the purchase orders of carried forward from the prior year. Supplies FY 2019-20 Current Budget: $826,900 FY 2019-20 YE Estimates: $666,800 FY 2020-21 Draft Budget: $557,600 Trainings/Meetings/Conferences This category include expenses related to City-wide trainings, meetings, and conferences which is projected to increase of 21% or $66,500 to the year-end estimates. The decrease to the current budget are from cost saving measures and t he increase from year-end estimates is from cancelled trainings and events in FY 2019-20. Trainings/Meetings/Conferences FY 2019-20 Current Budget: $396,500 FY 2019-20 YE Estimates: $244,900 FY 2020-21 Draft Budget: $311,400 Miscellaneous/Other Expense This category accounts for miscellaneous expense including property insurance premium payment, one time claim settlements, and any other expenses that are not categorized in other categories. Overall, Miscellaneous/Other Expenses is estimated to increase by 10% or $123,400 to the year-end estimates. The decrease to current budget is from one-time payments from claim settlements in FY 2019-20. The increase to the year-end estimates is to account for the increase of the City’s California Joint Powers Authority Property Insurance Premium. Miscellaneous/Other Expense FY 2019-20 Current Budget: $1,272,800 FY 2019-20 YE Estimates: $1,061,200 FY 2020-21 Draft Budget: $1,184,600 15 Transfers Out In accordance with City Council Policy No. 41 Reserve Policies, the City transfers the annual Terranea TOT taxes from General Fund to the CIP Fund. During the FY 2017- 18 Budget Adoption, with the goal to continue to enhance public safety services, the City Council directed Staff to reduce the TOT transfer to the CIP Fund by the annual increase in the public safety contract. The transfer for FY 2020-21 is calculated as follows: Overall, the CIP Transfers Out is projected to decrease by 35% or ($683,300) to the year-end estimates mainly due to the closure of the Te rranea Resort as a result of the Stay-at-Home Order since mid-March. For the Miscellaneous Transfers Out, an estimated decrease of 367% or ($110,000) to year-end estimates. The reductions are from the transfers to Subregion One Fund and Improvement Authority Portuguese Bend due to the interest earned in these funds are enough to cover the ongoing maintenance needs for FY 2020-21. Transfers Out FY 2019-20 Current Budget: $4,116,900 FY 2019-20 YE Estimates: $2,757,300 FY 2020-21 Draft Budget: $1,964,000 The following Charts illustrate the FY 2020-21 Draft Budget by Category in Expenditures excluding Transfers-Out. Projected TOT Revenue from Terranea 3,389,300$ Less FY 17-18 Public Safety Increase (893,000) Less FY 18-19 Public Safety Increase (200,500) Less FY 19-20 Public Safety Increase (260,800) Less FY 20-21 Public Safety Increase (101,000) Proposed TOT Transfer to CIP 1,934,000$ 16 Chart 4 – Fiscal Year 2020-21 General Fund Draft Budget Expenditures by Category (Excluding Transfers-Out) Chart 5 – Fiscal Year 2020-21 General Fund Draft Budget Expenditures by Department (Excluding Transfers-Out) 17 City Council No. 45 Balanced Operating Budget In accordance with City Council Policy No. 45, the FY 2020-21 General Fund Draft Budget presented this evening is structurally balanced, where recurring expenditures do not exceed recurring revenues, and ongoing program expenditures are not funded with one-time revenue sources. Table 4 below summarizes how one-time and recurring revenues will offset one-time and recurring expenditures. Table 4 – General Fund Recurring vs. One-time Revenues and Expenditures 101 - GENERAL FUND Revenue Type Recurring One-time Total Property Tax 14,129,700 - 14,129,700 Transient Occupancy Tax 3,762,500 - 3,762,500 Sales Tax 2,312,300 - 2,312,300 Franchise taxes 2,167,500 - 2,167,500 Utility Users Tax 2,099,700 - 2,099,700 Permits & Fees 1,819,200 - 1,819,200 Other Taxes & Misc. Revenues 2,679,000 - 2,679,000 TOTAL REVENUES 28,969,900 - 28,969,900 Expenditure by Program Recurring One-time Total City Council 102,900 - 102,900 City Attorney 975,000 - 975,000 Public Safety/Law Enforcement 7,381,700 - 7,381,700 City Administration 3,382,000 - 3,382,000 Finance 1,563,500 1,563,500 Community Development 3,128,400 - 3,128,400 Public Works 5,276,400 - 5,276,400 Recreation & Parks 3,197,900 - 3,197,900 Non-department 1,829,100 - 1,829,100 TOTAL EXPENDITURES 26,836,900 - 26,836,900 STRUCTURAL SURPLUS/(DEFICITS) 2,133,000 - 2,133,000 Transfers in 230,000 - 230,000 Transfers out 1,964,000 - 1,964,000 SURPLUS/(DEFICITS) 399,000 - 399,000 FY 2020-21 RECURRING VS. ONE-TIME REVENUES AND EXPENDITURES 18 In summary, based on the financial implications of COVID-19, the FY 2020-21 General Fund budget was prepared with additional attention by finding ways to reduce costs and preserving a healthy fund balance. As a result, the estimated revenues is approximately $29.2 million and $28.8 million in expenditures, net of transfers. At the end of June 30, 2021, the General Fund would have an ending balance of $21.4 million, and after applying the City Council’s reserve policy of $13.4 million, the excess unrestricted surplus is projected to be approximately $8 million. Table 5 is the summary of the estimated fund balance by June 30, 2021. Table 5: FY 2020-21 Estimated Fund Balance Capital Improvement Program and Special Revenue Funds Capital Improvement Program: The City’s CIP is the City’s plan for the infrastructure projects in conjunction with the City’s General Plan and the City Council’s Goals to identify needed capital projects based on available sources of revenues. Additionally, the CIP provides the framework for the City’s management team, Public Works, and the City Council. The City Council- appointed Infrastructure Management Advisory Committee (IMAC) also assists in the development and rankings of the CIP list. The CIP projects are funded by the General Fund TOT transfers (net of public safety increase) and Special Revenue Funds. In light of COVID-19, the FY 2020-21 budget and the City’s CIP 5-Year Program was prepared differently based on the available funding sources. Due to the revenue loss in TOT Taxes, the transfers from General Fund to Capital Infrastructure Projects (CIP) Fund Post COVID-19 FY 20-21 Proposed Budget FY 20-21 Draft Budget FY 20-21 Variances Beginning Fund Balance - 7/1/2020 20,070,678 21,073,135 1,002,457 Add: Revenues 28,560,300 28,969,900 409,600 Add: Transfers In 230,000 230,000 - Total Revenues 28,790,300 29,199,900 409,600 Less: Expenditures (27,498,400) (26,836,900) 661,500 Less: Transfers to CIP (1,934,000) (1,934,000) - Less: Other Transfers Out (90,000) (30,000) 60,000 Total Expenditures (29,522,400) (28,800,900) 721,500 Ending Fund Balance - 6/30/2021 19,338,578 21,472,135 1,131,100 50% Reserve Policy 13,749,200 13,418,450 (330,750) Unrestricted Excess/(Deficit) Reserve 5,589,378 8,053,685 2,464,307 19 were reduced substantially by over $1.3 million in FY 2020-21 and almost $1.8 million in FY 2020-21. Based on the direction resulting from the Budget Workshops and the Preliminary Budget Meeting, sixteen (16) projects are proposed to be funded in the FY 2020-21 Draft Budget. The estimated amount for the projects is approximately $4.3 million that would be supported by the various funding sources consisting of CIP Fund, Measure R, Proposition C, and 1911 Act Lighting as presented in the following tables below. No reserve funds are proposed to fund the CIP projects. The detailed capital project listing along with related project costs, funding sources and project data sheets are also attached to this (Attachment B). Table 6: FY 2020-21 Draft CIP Projects Table 7: FY 2020-21 Draft CIP Projects – Total By Fund Project Code Project Name Fund Fund Name FY 2020-21 Draft Budget 8301 PVDS Realignment – East End Construction 330 CIP 1,200,000$ 8302 Annual Portuguese Vend Landslide Area Resurfacing Program 215 Prop. C 650,000$ 8404 Coastal Bluff Fence Replacement Program 330 CIP 200,000$ 8421 PVIC Park Improvement Master Plan 330 CIP 50,000$ TBD Nature Preserve Gate for Burma Road Trail 330 CIP 100,000$ TBD Nature Preserve Gate for Rattlesnake Trail 330 CIP 100,000$ 8503 Civic Center Master Plan 330 CIP 151,000$ 8504 Citywide ADA Transition Plan 330 CIP 150,000$ 87xx Storm Drain Improvement at 6415 Corsini – Engineering 330 CIP 20,000$ 87xx Altamira Canyon Drainage and Erosion Control Project 330 CIP 350,000$ 8004 Public Signs Replacement Program 330 CIP 50,000$ 8801 Sidewalk Repair and Replacement Program 220 Measure R 250,000$ 8837 Traffic Signal Light at PVDS and PVDE 215 Prop. C 295,000$ 8838 Traffic Signal Light at Hawthorne Blvd. and Via Riveria 211 1911 Act 342,000$ TBD Western Ave. Beautification – Engineering 330 CIP 150,000$ TBD PVDE Widening and Path Improvements at Bronco - Engineering 220 Measure R 200,000$ TOTAL FY 2020-21 CAPITAL IMPROVEMENT PROGRAM 4,258,000$ Fund Fund Name FY 2020-21 Draft Budget 330 CIP 2,521,000$ 215 Prop. C 945,000$ 220 Measure R 450,000$ 211 1911 Act 342,000$ Total 4,258,000$ 20 The estimated CIP fund balance at June 30, 2021, is estimated to be over $24.2 million less the Council Required Policy reserve of $3.0 million results in an estimated excess surplus of $21.2 million (Table 8). Table 8 – Summary of FY 2020-21 Fund Balance - CIP Projects Special Revenues: Special Revenues are used to account for taxes and other revenues set aside for a specific or restricted purposes. The City’s major special revenue funds are Gas Tax, Proposition A, Proposition C, Measure R, and Measure M and Quimby. Most of the funding for special revenues are designated fo r street maintenance, public right of way maintenance, park upgrades, park maintenance, and transit related expenses. Staff ensures that the special revenue funds are utilized for any qualified project before CIP reserves are appropriated. Equipment Replacement: The Equipment Replacement Fund (ERF) is an internal service fund that is used to accumulate funding to replace City equipment, furniture, and vehicles at the end of the designated life cycle. The City Council policy for this fund is to maintain a fund balance equivalent to the replacement value of all items that are at the end of their life cycle. This fund continues to operate with a balanced budget and with an excess fund balance, therefore Staff is recommending the annual charges for equipment replacement in FY 2020-21 to be at 25% funding for a total of $93,300. The projected fund balance at June 30, 2021, is almost $2.2 million and the replacement value at June Capital Infrastructure Measure R Proposition C 1911 Act Beginning Fund Balance - 7/1/20 24,342,991 984,844 630,419 1,170,808 Add: Revenues 460,200 545,400 702,400 628,200 Add: Transfers In 1,934,000 - - - Total Revenues 2,394,200 545,400 702,400 628,200 Less: Capital Projects (2,521,000) (450,000) (945,000) (342,000) Less: Operating Expenses - - (347,100) Less: Transfers Out - - Total Expenditures (2,521,000) (450,000) (945,000) (689,100) Estimated Ending Fund Balance - 6/30/21 24,216,191 1,080,244 387,819 1,109,908 Reserve Policy 3,000,000 Excess Reserve 21,216,191 1,080,244 387,819 1,109,908 21 30, 2021, is estimated to be $2 million for an excess accumulation of almost $138,000. Based on this analysis the ERF will still be overfunded at the end of FY2020 -21. The expenditures scheduled for replacement in FY 2020 -21 total approximately $650,000 or 32% of the total replacement value. Items aren’t replaced solely based on the schedule, but are reviewed by Staff to determine their current status and the need for replacement. Below is a summary of the estimated FY 2020-21 fund balances for the Capital Infrastructure Program Fund, Special Revenue Funds, and Equipment Replacement Fund. These fund balance amounts are based on estimated project costs, equipment needs and other non-General Fund expenditures expected next year. Table 9 – Capital Improvement Program, Equipment Replacement, and Special Revenues Fund Balance Lastly, the next table is a budget summary of the City’s FY 2021-21 Draft Budget for all funds. Capital Infrastructure Equipment Replacement Special Revenues Beginning Fund Balance - 7/1/20 24,342,991 2,679,042 10,328,723 Add: Revenues 460,200 138,300 5,571,900 Add: Transfers In from General Fund 1,934,000 10,000 Total Revenues 2,394,200 138,300 5,581,900 Less: Expenditures (2,521,000) (650,000) (5,662,100) Less: Transfers Out (230,000) Total Expenditures (2,521,000) (650,000) (5,892,100) Estimated Ending Fund Balance - 6/30/21 24,216,191 2,167,342 10,018,523 Reserve Policy 3,000,000 2,029,500 952,180 Excess Reserve 21,216,191 137,842 9,066,343 22 Table 10– FY 2020-21 Draft Budget Summary – All Funds Review of Utility Users Tax Municipal Code Section 3.30.190 requires that the City Manager submit to the City Council analysis of the revenues derived from the Utility User Tax (UUT) annually. Based on the needs of the City, the City Council shall determine if any modification to the tax rate is appropriate, or if the UUT is unnecessary. The tax rate cannot be increased without a majority vote of the residents of the City during a Municipal Election. The projected FY 2020-21 UUT revenue is approximately $2.1 million (or approximately 7% of total General Fund revenue). Based upon the operating and capital needs of the City, Staff recommends that the City Council accept that the current UUT rate of 3% Fund Balance Fund Balance Fund 6/30/2020 Revenues Transfers In Expenditures Transfers Out 6/30/2021 General Fund Balance 21,073,135 28,969,900 230,000 26,836,900 1,964,000 21,472,135 Restricted Amount (Policy Reserve)(13,135,756) (13,418,450) General Fund Unrestricted Balance 7,937,380 28,969,900 230,000 26,836,900 1,964,000 8,053,685 Restricted by Council Action CIP 24,342,991 460,000 1,934,000 2,521,000 - 24,215,991 EQUIPMENT REPLACEMENT 2,679,042 138,300 - 650,000 - 2,167,342 Subtotal of Restricted by Council Action 27,022,033 598,300 1,934,000 3,171,000 - 26,383,333 Restricted by Law or External Agencies GAS TAX 94,814 1,462,000 - 1,162,000 - 394,814 1972 ACT 28,384 - - - - 28,384 EL PRADO LIGHTING 34,475 2,500 - 800 - 36,175 CDBG (131,103) 217,700 150,600 - (64,003) 1911 ACT 1,170,808 628,200 - 689,100 - 1,109,908 WASTE REDUCTION 334,497 131,000 - 287,500 - 177,997 AIR QUALITY MANAGEMENT 102,012 55,000 - 57,000 - 100,012 PROPOSITION C 630,419 702,400 945,000 - 387,819 PROPOSITION A 1,999,772 849,400 - 776,600 - 2,072,572 PUBLIC SAFETY GRANTS 76,041 157,700 - - 130,000 103,741 MEASURE R 984,844 545,400 - 450,000 - 1,080,244 MEASURE M 37,707 530,000 - 536,000 - 31,707 HABITAT RESTORATION 785,018 12,400 - 184,900 - 612,518 SUBREGION 1 MAINTENANCE 773,920 14,000 10,000 41,600 - 756,320 MEASURE A 57,918 91,000 - - 100,000 48,918 ABALONE COVE SEWER DISTRICT 178,484 52,000 146,000 - 84,484 GINSBURG CULTURAL ARTS BUILDING - - - - - - DONOR RESTRICTED CONTRIBUTIONS 767,832 25,000 - 25,000 - 767,832 QUIMBY 1,277,833 25,000 - - - 1,302,833 LOW-MOD INCOME HOUSING 235,060 46,200 - - - 281,260 AFFORDABLE HOUSING IN LIEU 853,837 15,000 - - - 868,837 ENVIRONMENTAL EXCISE TAX 236,563 10,000 - 210,000 - 36,563 BIKEWAYS - - - - - - Subtotal Restricted by Law 10,328,723 5,571,900 10,000 5,662,100 230,000 10,018,523 GRAND TOTAL GOVERNMENT FUNDS 45,288,135 35,140,100 2,174,000 35,670,000 2,194,000 44,455,541 CITY OF RANCHO PALOS VERDES FY 2020-21 FUND SUMMARY FY20-21 Estimated Resources FY20-21 Estimated Appropriations 23 continue for FY 2020-21. ADDITIONAL INFORMATION: On May 14 and 21, 2020, a public notice was published in the Peninsula News for tonight’s and June 16 public hearings on the City Council’s consideration to adopt the FY2020-21 budget and CIP. To date, we have received one public comment from Ms. Sunshine regarding the FY 2020-21 draft budget. Ms. Sunshine inquired on what is and isn’t in the draft budget. Staff has responded to the comment and a copy is attached to this staff report, Attachment C. If comments are received after the transmittal of this staff report, they will be provided to the City Council as late correspondence the night of the public hearing. CONCLUSION: As a result of the City’s long history of fiscal responsibility and maintaining healthy fund balances, the City would be able to continue to end FY 2019-20 with an excess unrestricted surplus of $7.9 million. The surplus will increase to over $8 million at the end of FY 2020-21, after applying the 50% City Council’s Policy Reserve of $13.1 million. This is an improvement of over $2.4 million since the Budget Workshops in April and Preliminary Budget Meeting in May. The CIP Fund will end FY2019-20 with fund balance of $24.3 and estimated to end FY 2020-21 at $24.2 million. The Equipment Replacement Fund and all Special Revenues Funds are estimated to end FY 2019-20 with healthy fund balances and will be able to support operating expenditures. The Equipment Replacement Fund is estimated to have a fund balance of almost $2.2 million and all other Special Revenue Funds are estimated at over $10.2 million at the end FY 2020-21. In closing, it is important to note that while the City projects healthy fund balances by June 30, 2021, there are still many unknown information today that would predict actual future financial impacts from the COVID-19 pandemic. The City will remain fiscally prudent and Staff will continue to monitor the financials and report any updated information during the mid-year report in February/March of 2021. Any direction from the City Council based on the figures presented in this report will be incorporated in the FY 2020-21 Final Budget that Staff will be presenting at a duly noticed public hearing to be held by the City Council on June 16, 2020. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action is available for the City Council’s consideration: 1. Discuss and take other action related to this item. 24 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 GENERAL FUND PROPERTY TAXES 3102-3103 Property Tax 7,114,319 7,840,208 8,236,989 8,338,300 8,553,800 3107 Property Tax in Lieu of Sales 332,296 - - - - 3107 Property Tax in Lieu of VLF 4,432,363 4,663,495 4,920,186 5,117,200 5,275,900 3108 Redevelopment Property Tax Trust 23,668 33,760 50,255 55,600 25,000 3110 Property Transfer Tax 443,174 490,796 359,706 330,600 275,000 TOTAL PROPERTY TAXES 12,345,820 13,028,259 13,567,136 13,841,700 14,129,700 OTHER TAXES 3101 Golf Tax 365,259 402,732 429,049 323,300 300,300 3111 Franchise Taxes 1,984,878 2,128,727 2,149,743 2,150,000 2,167,500 3112 Sales and Use Tax 2,383,705 2,437,988 2,575,202 2,180,000 2,240,000 3113 Sales Tax - PW (PSAF)78,743 82,079 85,979 80,300 72,300 3114-3117 Utility Users Tax 1,775,433 1,837,690 1,917,107 2,099,700 2,099,700 3120-3121 Transient Occupancy Tax 5,600,867 5,615,044 5,645,497 4,181,700 3,762,500 3210 Business License Tax 904,107 887,276 945,792 800,300 865,300 TOTAL OTHER TAXES 13,092,992 13,391,536 13,748,369 11,815,300 11,507,600 OTHER LICENSE & PERMIT 3202 Building & Safety Permits 1,063,530 1,209,868 1,152,758 969,500 969,500 3203 Building & Safety Plan Check 360,349 353,155 393,433 308,400 308,400 3205 Film Permits 43,724 37,125 2,930 30,700 30,700 3206 Animal Control Fees 36,470 31,835 31,365 27,400 27,400 3207 Building & Safety Fees 1,912 858 1,367 3,000 3,000 3208 Building & Safety State Building Standard 79 660 (521) 4,300 4,300 3209 Building & Safety Geology Fees 173,041 132,649 128,272 112,900 112,900 3212 Business License Penalty - 5,784 12,501 18,300 17,900 3213 Parking Permits 690 330 440 500 500 3214 Parking Decals 683 665 988 300 300 3215 Plan & Zone Permits 345,749 341,424 401,764 271,200 271,200 3216 Plan - Investigation 16,165 3,076 - - - 3217 View Restoration Fees 7,719 - 5,106 4,800 4,800 3218 Plan - Misc. Fees - 8,572 7,769 8,000 8,000 3218 Plan - Historical Data Fees 17,176 - - - - 3219 Right of Way Permits 72,142 77,689 74,329 74,600 74,600 3220 Dumpster Permits 1,078 4,018 4,606 3,600 3,600 TOTAL OTHER LICENSE & PERMIT 2,140,507 2,207,708 2,217,106 1,837,500 1,837,100 FINES & FORFEITURES 3501 Tow Fees - 8,383 6,225 5,800 5,800 3502 False Alarm Fines 2,500 11,400 18,200 4,800 4,800 3503 Misc. Court Fines 140,414 91,165 91,460 61,800 61,800 4140-3504 Code Enforcement Citations - 32,805 12,674 15,100 15,000 TOTAL FINES & FORFEITURES 142,914 143,753 128,558 87,500 87,400 RENTALS 3602 Rent - Rec & Parks 2,157 - - - - 5120-3602 Rent - Other Recreational Facilities - 1,314 1,421 5,000 4,800 5130-3602 Rent - Hesse Park 52,013 15,431 44,485 28,600 14,600 5140-3602 Rent - Ryan Park 14,346 43,647 19,595 10,800 4,600 5150-3602 Rent - Ladera Linda 19,132 8,799 6,971 3,100 3,100 5180-3602 Rent - PVIC 199,233 208,603 235,056 152,900 152,900 0000-3602 Rent - Citywide 173,140 226,798 171,200 141,300 141,300 TOTAL RENTALS 460,021 504,592 478,729 341,700 321,300 INTERESTS 107,867 206,893 366,409 323,200 280,000 CITY OF RANCHO PALOS VERDES STATEMENT OF REVENUES - ALL FUNDS FISCAL YEAR 2020-2021 A-1 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF RANCHO PALOS VERDES STATEMENT OF REVENUES - ALL FUNDS FISCAL YEAR 2020-2021 CHARGES FOR SERVICES 3401 Engineering Fees 2,706 198 - - - 5160-3411 Shoreline Parking Lot Fees 261,692 245,941 215,341 154,400 138,000 5120-3412 Program/Event Fees - 5,799 8,374 6,200 5,200 5131-3412 Program/Event Fees - 30,410 63,361 38,800 34,600 5170-3412 Program Fees 7,364 5,557 5,972 8,000 8,000 5190-3412 REACH - Program Fees 7,918 10,456 13,305 2,800 1,000 3906 Sale of Signs/Services 1,150 150 - - - TOTAL CHARGES FOR SERVICES 280,830 298,511 306,353 210,200 186,800 INTERGOVERNMENTAL REVENUE 3301 Federal Grant Income - 64,483 - - - 3302 Grant Income - - 1,359 - - 3302 Motor Vehicle in Lieu 19,282 17,121 - - - TOTAL INTERGOVERNMENTAL 19,282 81,604 1,359 - - OTHER REVENUE 3801 Special Fund Administration 155,800 89,700 169,356 139,700 150,000 5120-3901 Donations - Britton Memorial 132 - - - - 5170-3901 Donations - Special Events - 5,400 4,700 3,800 3,800 5180-3901 Donations - PVIC 14,166 11,667 8,411 8,500 5,400 5190-3901 Donations - REACH 2,946 372 1,244 1,000 800 3901 Donations - General - 1 - - - 3902 CASP Fees 1,215 4,253 7,604 4,500 4,500 3904 RDA Loan Payment 177,186 117,694 139,938 193,100 298,800 3908 Successor Agency Adminstration 6,807 50,000 - - 16,000 5180-3701 PVIC Gift Shop 26,677 136,013 137,551 79,200 79,200 1430-3999 Misc. Revenues - 1,640 2,600 1,500 1,500 3999 Misc. Revenues 284,500 173,007 405,626 150,000 60,000 TOTAL OTHER REVENUE 669,429 589,747 877,030 581,300 620,000 TOTAL OPERATING REVENUE 29,259,662 30,452,603 31,691,049 29,038,400 28,969,900 INTER-FUND TRANSFERS Transfer In Public Safety Grant 100,000 140,000 130,000 175,000 140,000 Transfer in Measure A Maintenance 90,000 90,000 90,000 100,000 90,000 TOTAL TRANSFERS IN 190,000 230,000 220,000 275,000 230,000 TOTAL GENERAL FUND 29,449,662 30,682,603 31,911,049 29,313,400 29,199,900 ALL OTHER FUNDS STATE GAS TAX FUND INTERGOVERNMENTAL REVENUE 3304 State Gas Tax - 2103 114,879 167,001 142,726 291,520 291,500 3305 State Gas Tax - 2105 241,844 232,717 234,405 190,160 190,200 3306 State Gas Tax - 2106 145,849 144,561 144,587 116,080 116,100 3307 State Gas Tax - 2107 306,619 302,867 294,790 249,680 249,700 3308 State Gas Tax - 2107.5 6,000 6,000 6,000 4,800 4,800 3309 State Gas Tax - 2031 - 197,680 837,064 565,680 565,700 TOTAL INTERGOVERNMENTAL REVENUE 815,191 1,050,826 1,659,572 1,417,920 1,418,000 CHARGES FOR SERVICE 3404 Sidewalk Repair - - - - - OTHER REVENUE 3999 Misc. Revenues 17,653 63,892 48,179 38,560 38,600 INTEREST - 3601 Interest on Investments 6,870 918 7,466 5,440 5,400 TOTAL STATE GAS TAX FUND 839,714 1,115,636 1,715,217 1,461,920 1,462,000 A-2 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF RANCHO PALOS VERDES STATEMENT OF REVENUES - ALL FUNDS FISCAL YEAR 2020-2021 1972 ACT FUND OTHER TAXES 3102 Assessments 260,037 - - - - INTEREST - 3601 Interest on Investments 545 333 541 - - TOTAL 1972 ACT FUND 260,582 333 541 - - EL PRADO FUND OTHER TAXES 3102 Assessments 2,402 2,564 2,782 2,300 2,300 INTEREST 3601 Interest on Investments 180 345 600 200 200 TOTAL EL PRADO FUND 2,582 2,909 3,382 2,500 2,500 1911 ACT FUND OTHER TAXES 3102 Assessments 632,874 659,534 694,107 606,800 606,800 INTEREST 3601 Interest on Investments 13,292 24,921 37,878 21,200 21,400 TOTAL 1911 ACT FUND 646,166 684,455 731,985 628,000 628,200 BEAUTIFICATION FUND INTEREST 3601 Interest on Investments 3,268 5,652 - - - TOTAL EL PRADO FUND 3,268 5,652 - - - WASTE REDUCTION FUND INTERGOVERNMENTAL REVENUE 3302 Used Oil Payment 33,973 10,920 22,644 22,100 22,100 3705 Reimbursement LA County TRAP - - - - - TOTAL INTERGOVERNMENTAL 33,973 10,920 22,644 22,100 22,100 CHARGES FOR SERVICE 3406 AB 939 Fees 187,036 219,802 188,142 93,300 104,300 INTEREST 3601 Interest on Investments 3,144 5,281 8,680 4,600 4,600 TOTAL WASTE REDUCTION FUND 224,153 236,003 219,466 120,000 131,000 AIR QUALITY MANAGEMENT FUND INTERGOVERNMENTAL REVENUE 3303 AB 2766 Revenue 54,963 54,916 55,414 50,000 50,000 INTEREST 3601 Interest on Investments 613 949 1,413 5,000 5,000 TOTAL AQMD FUND 55,576 55,865 56,827 55,000 55,000 PROPOSITION "C" TRANSPORTATION FUND INTERGOVERNMENTAL REVENUE 3303 Proposition "C" Sales Tax 645,099 665,051 714,128 696,200 696,200 INTEREST 3601 Interest on Investments 3,835 8,257 15,733 6,200 6,200 TOTAL PROPOSITION "C" FUND 648,934 673,308 729,861 702,400 702,400 A-3 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF RANCHO PALOS VERDES STATEMENT OF REVENUES - ALL FUNDS FISCAL YEAR 2020-2021 PROPOSITION "A" TRANSPORTATION FUND INTERGOVERNMENTAL REVENUE 3303 Proposition "A" Sales Tax 776,681 802,855 860,943 839,400 839,400 OTHER REVENUE 3999 Misc Revenues 1,675,000 - - - - INTEREST 3601 Interest on Investments 8,012 26,968 38,887 10,000 10,000 TRANSFERS IN 9101 Transfer in from State Grants - - 300,000 - - TOTAL PROPOSITION "A" FUND 2,459,693 829,823 1,199,830 849,400 849,400 PUBLIC SAFETY FUND INTERGOVERNMENTAL REVENUE 3302 CA Brulte (COPS)129,324 139,416 148,747 150,000 150,000 INTEREST 3601 Interest on Investments 603 1,227 2,116 7,700 7,700 TOTAL PUBLIC SAFETY FUND 129,927 140,643 150,863 157,700 157,700 MEASURE "R" TRANSIT SALES TAX FUND INTERGOVERNMENTAL REVENUE 3303 Measure "R" Sales Tax 483,294 498,787 535,750 522,200 522,200 INTEREST 3601 Interest on Investments 13,110 27,599 34,139 23,200 23,200 TOTAL MEASURE "R" FUND 496,404 526,386 569,889 545,400 545,400 MEASURE "M" TRANSIT SALES TAX FUND INTERGOVERNMENTAL REVENUE 3303 Measure "M" Sales Tax - 452,015 603,557 529,500 529,500 INTEREST 3601 Interest on Investments - 1,205 1,365 500 500 TOTAL MEASURE "M" FUND - 453,220 604,922 530,000 530,000 HABITAT RESTORATION FUND INTERGOVERNMENTAL REVENUE 3302 State Grant Income 6,729 433 - - - INTEREST 3601 Interest on Investments 8,682 13,707 19,953 15,000 12,400 OTHER REVENUES 3999 Misc Revenues 4,769 - - - - TOTAL HABITAT RESTORATION FUND 20,180 14,140 19,953 15,000 12,400 SUBREGION 1 FUND INTEREST 3601 Interest on Investments 5,307 9,364 14,969 15,000 14,000 CHARGES FOR SERVICE 3907 Developer Fees - 22,716 - - - TRANSFERS IN 9101 Transfer in from General Fund - 41,500 - 35,000 10,000 TOTAL SUBREGION 1 FUND 5,307 73,580 14,969 50,000 24,000 MEASURE A FUND INTERGOVERNMENTAL REVENUE 3303 Measure A 192,598 46,848 86,634 90,000 90,000 INTEREST 3601 Interest on Investments 295 1,184 1,648 1,100 1,000 TOTAL MEASURE A FUND 192,893 48,032 88,282 91,100 91,000 A-4 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF RANCHO PALOS VERDES STATEMENT OF REVENUES - ALL FUNDS FISCAL YEAR 2020-2021 ABALONE COVE SEWER MAINTENANCE FUND OTHER TAXES 3102 Assessments 54,836 56,578 50,672 61,100 50,000 INTEREST 3601 Interest on Investments 786 2,856 6,407 2,000 2,000 TRANSFERS IN 9101 Transfer in from General Fund 208,000 208,000 - - - 9330 Transfer in from Infrastructure - - - - - TOTAL ABALONE COVE SEWER MAINT. FUND 263,622 267,434 57,079 63,100 52,000 GINSBURG CULTURAL ARTS BUILDING INTEREST 3601 Interest on Investments 587 1,045 - - - TOTAL GINSBURG CULTURAL ARTS FUND 587 1,045 - - - DONOR RESTRICTED DONATIONS FUND INTEREST 3601 Interest on Investments 5,966 10,738 16,090 25,000 25,000 OTHER REVENUE 3901 Donations - Restricted 10,500 20,500 44,523 - - 2999-3901 Donations - City's Anniversary - 15,000 - - - TOTAL DONOR RESTRICTED DONATIONS FUND 16,466 46,238 60,613 25,000 25,000 COMMUNITY DEVELOPMENT BLOCK GRANT FUND INTERGOVERNMENTAL REVENUE 3301 Grant Income 142,317 223,613 178,591 139,300 217,700 TOTAL CDBG FUND 142,317 223,613 178,591 139,300 217,700 CAPITAL IMPROVEMENT FUND INTERGOVERNMENTAL REVENUE 3301 Federal Grant - - 5,007 - - 3302 State Grant - - - - - 3303 Local Grant 143,064 - - - - TOTAL INTERGOVERNMENTAL REVENUE 143,064 - 5,007 - - INTEREST 3601 Interest on Investments 191,721 303,781 508,963 506,200 460,000 OTHER REVENUE 3999 Misc Revenues - - - - - TRANSFERS IN 9101 Transfer in from General Fund 4,141,397 4,526,000 4,301,852 2,617,300 1,934,000 9331 Transfer in from Federal Grants - - 1,087,318 98,300 - TOTAL TRANSFERS IN 4,141,397 4,526,000 5,389,170 2,715,600 1,934,000 TOTAL CAPITAL IMPROVEMENT FUND 4,476,182 4,829,781 5,903,140 3,221,800 2,394,000 FEDERAL GRANTS INTERGOVERNMENTAL REVENUE 3301 Federal Grant - 1,235,012 141,442 - - INTEREST 3601 Interest on Investments - 6,799 - - - TOTAL FEDERAL GRANTS FUND - 1,241,811 141,442 - - STATE GRANTS INTERGOVERNMENTAL REVENUE 3302 State Grant - - 144,320 - - TOTAL STATE GRANTS FUND - - 144,320 - - A-5 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF RANCHO PALOS VERDES STATEMENT OF REVENUES - ALL FUNDS FISCAL YEAR 2020-2021 QUIMBY FUND CHARGES FOR SERVICE 3907 Quimby Developer Fee 50,929 38,223 - - - INTEREST 3601 Interest on Investments 16,505 21,048 33,272 52,000 25,000 TOTAL QUIMBY FUND 67,434 59,271 33,272 52,000 25,000 CITY LOW-MOD INCOME HOUSING FUND INTEREST 3601 Interest on Investments 764 1,770 2,956 1,500 3,000 OTHER REVENUES 3904 RDA Loan Payment - - - 43,200 43,200 3999 Misc Revenues 36,860 - - - - PROPERTY TAX 3108 Redevelopment Property Tax Trust 5,917 14,712 34,984 - - TOTAL CITY LOW-MOD INCOME HOUSING FUND 43,541 16,482 37,940 44,700 46,200 AFFORDABLE HOUSING PROJECTS FUND INTEREST 3601 Interest on Investments 4,034 7,457 15,961 15,000 15,000 CHARGES FOR SERVICE 3907 Developer Fees - 221,818 - - - TOTAL AFFORDABLE HOUSING PROJECTS FUND 4,034 229,275 15,961 15,000 15,000 ENVIRONMENTAL EXCISE TAX (EET) CHARGES FOR SERVICE 3907 EET Developer Fee 95,991 156,065 39,020 - - INTEREST 3601 Interest on Investments 1,899 4,655 9,399 25,000 10,000 TOTAL QUIMBY FUND 97,890 160,720 48,419 25,000 10,000 TDA ARTICLE 3 - SB 821 BIKEWAY FUND INTERGOVERNMENTAL REVENUE 3303 TDA Article 3 - SB 821 - 82,500 - - - TOTAL TDA ARTICLE 3 FUND - 82,500 - - - WATER QUALITY/FLOOD PROTECTION FUND INTEREST 3601 Interest on Investments 35,274 28,934 - - - CHARGES FOR SERVICES 3402 Storm Drain User Fees 14,436 - - - - INTERGOVERNMENTAL REVENUE 3302 State Grant Income - - 200,000 - - TOTAL WATER QUALITY FUND 49,710 28,934 200,000 - - EQUIPMENT REPLACEMENT FUND CHARGES FOR SERVICE 3803 Interfund Charges 82,050 300,900 300,900 84,800 93,300 TOTAL CHARGES FOR SERVICE 82,050 300,900 300,900 84,800 93,300 INTEREST 3601 Interest on Investments 19,164 29,919 50,259 52,150 45,000 TOTAL EQUIPMENT REPLACEMENT FUND 101,214 330,819 351,159 136,950 138,300 TOTAL OTHER FUNDS REVENUES 11,248,376 12,377,908 13,277,923 8,931,270 8,114,200 TOTAL CITY REVENUES 40,698,038 43,060,511 45,188,972 38,244,670 37,314,100 A-6 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 TRANSFERS OUT 4,387,397 4,813,500 4,346,852 2,757,300 1,964,000 CITY COUNCIL 139,806 107,310 96,251 98,459 102,900 CITY ATTORNEY 1,173,168 1,157,585 1,160,193 1,089,916 975,000 PUBLIC SAFETY Sheriff 5,451,056 6,223,715 6,407,659 6,820,500 7,222,400 Special Programs 821,653 1,029,299 703,365 590,527 160,300 TOTAL PUBLIC SAFETY 6,272,709 7,253,014 7,111,024 7,411,027 7,382,700 CITY ADMINISTRATION City Manager 783,077 899,709 802,974 708,621 795,300 City Clerk 484,381 595,565 449,731 764,119 638,700 Community Outreach 74,448 74,465 62,246 63,900 68,300 Emergency Preparedness 161,607 145,801 103,417 61,900 158,400 Emergency Operation Center - - - 269,798 - RPVtv 169,004 203,701 179,549 193,108 229,700 Human Resources 364,246 373,704 302,545 357,866 316,000 Information Technology - Data 889,924 1,012,124 928,886 1,032,740 1,081,800 Information Technology - Voice 100,933 93,138 96,277 112,000 110,000 TOTAL CITY ADMINISTRATION 3,027,620 3,398,207 2,925,625 3,564,052 3,398,200 FINANCE Finance 1,265,590 1,349,974 1,502,164 1,616,603 1,565,100 TOTAL FINANCE 1,265,590 1,349,974 1,502,164 1,616,603 1,565,100 NON-DEPARTMENT Non-departmental 2,400,364 1,166,153 1,133,907 1,207,209 1,874,700 TOTAL NON-DEPARTMENT 2,400,364 1,166,153 1,133,907 1,207,209 1,874,700 COMMUNITY DEVELOPMENT Administration 547,072 670,903 525,754 604,200 Planning 1,322,813 688,279 835,015 775,043 840,000 Building & Safety 773,627 791,009 826,228 664,723 787,200 Code Enforcement 116,264 183,129 184,457 227,087 295,600 View Restoration 302,403 394,012 321,836 372,028 359,300 NCCP - 16,870 11,445 15,000 50,000 Geology 148,448 115,578 107,253 100,000 100,000 Animal Control - - 89,842 120,000 109,000 TOTAL COMMUNITY DEVELOPMENT 2,663,555 2,735,949 3,046,979 2,799,635 3,145,300 PUBLIC WORKS Public Works Administration 2,175,728 2,157,495 2,155,312 2,070,095 2,095,500 Traffic Management 391,742 485,705 418,941 270,500 304,800 Storm Water Quality 230,695 310,929 535,921 529,700 506,000 Building Maintenance 448,843 597,137 453,631 548,100 529,000 Parks Maintenance 585,191 670,000 702,000 Street Landscape Maintenance 425,073 573,849 181,000 181,000 Trails & Open Space Maintenance 838,107 935,465 404,279 546,550 334,800 Fuel Modification 1,010,000 554,500 Vehicles Maintenance 418 40,694 41,641 49,500 47,000 Sewer Maintenance 951 1,554 22,550 45,000 35,000 TOTAL PUBLIC WORKS 4,086,484 4,954,052 5,191,315 5,920,445 5,289,600 CITY OF RANCHO PALOS VERDES STATEMENT OF EXPENDITURES - ALL FUNDS FISCAL YEAR 2020-2021 A-7 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF RANCHO PALOS VERDES STATEMENT OF EXPENDITURES - ALL FUNDS FISCAL YEAR 2020-2021 RECREATION AND PARKS Recreation Administration 873,450 1,042,367 1,026,224 942,604 1,088,000 Other Recreational Facilities 166,130 34,650 64,466 5,697 1,000 Fred Hesse Jr. Park 158,196 215,126 187,970 182,085 181,800 Robert E. Ryan Park 99,820 83,568 92,393 84,967 86,700 Ladera Linda Community Center 75,109 76,440 86,410 73,353 67,600 Abalone Cove Shoreline Park 91,173 139,626 135,175 136,179 155,300 Special Events and Programs 146,374 188,264 194,344 156,173 209,700 Point Vicente Interpretive Center 447,107 471,653 513,920 462,256 550,400 REACH 39,683 64,370 69,327 23,179 71,700 Support Services 74,468 40,978 29,084 20,026 21,000 City Run Sports - 5,659 3,066 4,518 4,900 Contract Classes - 21,649 41,695 55,000 50,000 Volunteer Program - - - 6,000 7,000 Park Rangers - - - 142,661 308,300 Eastview - 4,952 7,354 62,609 67,900 Open Space Management 3,592 104,013 235,721 206,859 232,100 TOTAL RECREATION & PARKS 2,175,102 2,493,315 2,687,149 2,564,166 3,103,400 TOTAL GENERAL FUND 27,591,795 29,429,059 29,201,459 29,028,812 28,800,900 ALL OTHER FUNDS STATE GAS TAX Street Pavement Maintenance 365,074 205,666 256,454 150,000 150,000 Street Landscape Maintenance 1,121,909 676,964 508,460 656,460 942,000 Traffic Signal Maintenance 10,175 10,000 16,770 - - Portuguese Bend Rd. Maintenance - - 48,867 50,000 70,000 Street Maintenance (CIP)442,622 471,592 - 1,395,380 - TOTAL STATE GAS TAX 1,939,780 1,364,222 830,551 2,251,840 1,162,000 1972 ACT Street Lights Maintenance 264,903 - - - - Transfers Out - - - - - TOTAL 1972 ACT 264,903 - - - - EL PRADO 237 493 593 800 800 1911 ACT Street Lights Maintenance 459,441 566,480 536,861 399,902 347,100 Capital Improvements - 48,105 856,683 516,902 342,000 Transfers Out - - - - - TOTAL 1911 ACT 459,441 614,585 1,393,544 916,804 689,100 BEAUTIFICATION Operating Expenses - - - - - Street Maintenance - - - - - Capital Improvements - 106,283 383,737 - - Transfers Out - - - - - TOTAL BEAUTIFICATION - 106,283 383,737 - - WASTE REDUCTION Operating Expenses 231,578 244,656 212,991 239,578 287,500 Transfers Out - - - - - TOTAL WASTE REDUCTION 231,578 244,656 212,991 239,578 287,500 A-8 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF RANCHO PALOS VERDES STATEMENT OF EXPENDITURES - ALL FUNDS FISCAL YEAR 2020-2021 AIR QUALITY Operating Expenses 78,284 49,995 50,000 50,000 57,000 Transfers Out - - - - - TOTAL AIR QUALITY 78,284 49,995 50,000 50,000 57,000 PROP "C" TRANSPORTATION Street Maintenance - - - - - Traffic Maintenance 66,699 9,081 Street Maintenance (CIP)539,740 599,924 572,312 640,000 945,000 Transfers Out - - - - - TOTAL PROPOSITION "C"539,740 599,924 639,011 649,081 945,000 PROP "A" TRANSPORTATION Dial-a-Ride 613,003 630,334 705,644 774,100 776,600 Capital Projects 10,581 496,443 44,108 454,852 - Transfers out - - - - - TOTAL PROPOSITION "A"623,584 1,126,777 749,752 1,228,952 776,600 PUBLIC SAFETY Transfers out 100,000 140,000 130,000 175,000 130,000 TOTAL PUBLIC SAFETY 100,000 140,000 130,000 175,000 130,000 MEASURE R Street Landscape Maintenance 169,952 - 28,032 250,000 Capital Projects - 2,036,294 113,705 450,000 Transfers out - - - - - TOTAL MEASURE R 169,952 - 2,064,326 363,705 450,000 MEASURE M Repairs & Maintenance - 448,464 565,972 536,000 536,000 Capital Projects - - - - Transfers out - - - - - TOTAL MEASURE M - 448,464 565,972 536,000 536,000 HABITAT RESTORATION 140,825 150,633 149,499 179,500 184,900 SUBREGION 1 35,107 36,228 43,831 41,400 41,600 MEASURE A Transfers out 90,000 90,000 90,000 100,000 100,000 TOTAL MEASURE A 90,000 90,000 90,000 100,000 100,000 ABALONE COVE SEWER MAINTENANCE 163,615 118,188 49,925 221,570 146,000 GINSBURG CULTURAL ARTS BUILDING - 86,344 1,045 - DONOR RESTRICTED DONATIONS Operating Expenses 9,760 46,724 31,259 28,000 25,000 Capital Improvements - - 137,683 4,331 - Transfers out - - - - - TOTAL DONOR RESTRICTED DONATIONS 9,760 46,724 168,942 32,331 25,000 COMMUNITY DEVELOPMENT BLOCK GRANT 142,317 194,556 193,586 281,861 150,600 A-9 PROJECTED DRAFT ACTUALS ACTUALS ACTUALS YEAR-END BUDGET FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF RANCHO PALOS VERDES STATEMENT OF EXPENDITURES - ALL FUNDS FISCAL YEAR 2020-2021 CAPITAL IMPROVEMENT PROGRAM FUND Administration 15,341 - - 35,313 Street Improvements 6,385,358 6,911,774 1,862,690 4,193,214 200,000 Parks, Trails & Open Space Improvements 231,565 425,485 215,942 373,324 450,000 Sewer Improvements 198,900 - - 41,291 - Building Improvements 31,423 9,000 135,649 266,450 301,000 Storm Water Quality Improvements - - 157,319 598,270 370,000 Landslide Improvements 242,935 157,349 37,132 388,138 1,200,000 Transfers Out - - - - - TOTAL CAPITAL IMPROVEMENT 7,105,522 7,503,608 2,408,733 5,896,000 2,521,000 FEDERAL GRANTS Capital Improvements - 197,621 - - Transfers Out - - 1,087,318 98,315 - TOTAL FEDERAL GRANTS - 197,621 1,087,318 98,315 - STATE GRANTS Capital Improvements - - 163,796 200,428 - Transfers Out - - 300,000 - - TOTAL STATE GRANTS - - 463,796 200,428 - QUIMBY Capital Improvements 80,550 562,680 142,004 475,259 - Transfers Out - - - - - TOTAL QUIMBY 80,550 562,680 142,004 475,259 - ENVIRONMENTAL EXCISE TAX (EET) Street Landscape Maintenance 75 - - 300,000 210,000 Transfers Out - - - - - TOTAL ENVIRONMENTAL EXCISE TAX (EET)75 - - 300,000 210,000 TDA ARTICLE 3 - SB 821 BIKEWAY FUND Capital Improvements - 82,500 - - - Transfers Out - - - - - TOTAL TDA ARTICLE 3 - SB 821 BIKEWAY - 82,500 - - - WATER QUALITY/FLOOD PROTECTION Operating Expenses - - - - - Capital Improvements 1,399,913 1,070,747 811,110 - - Transfers Out - - - - - TOTAL WATER QUALITY/FLOOD PROTECTION 1,399,913 1,070,747 811,110 - - EQUIPMENT REPLACEMENT 734,172 203,283 452,376 529,170 650,000 EMPLOYEE BENEFITS - - - - - TOTAL ALL OTHER FUNDS 14,309,355 14,952,167 13,167,941 14,768,639 9,063,100 TOTAL ALL FUNDS 41,901,150 44,381,226 42,369,400 43,797,451 37,864,000 A-10 FY 2020-21 Draft 5-year Capital Improvement Program Project Code Project Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 TBD Abalone Cove Sanitary Sewer Maintenance System 8202 Abalone Cove Sanitary Sewer System Rehabilitation Program - Construction 225 - Ab Cove Sewer - 450,000 650,000 - - Total Abalone Cove Sanitary Sewer Maintenance System - 450,000 650,000 - - - Palos Verdes Drive South (PVDS) Landslide 8301 PVDS Realignment - East End Construction 330 - CIP Fund 1,200,000 8302 Annual Portuguese Bend Landslide Area Resurfacing Program 215 - Prop C 650,000 650,000 700,000 700,000 750,000 Total PVDS Landslide 1,850,000 650,000 700,000 700,000 750,000 - Park Sites 8404 Coastal Bluff Fence Replacement Program 330 - CIP Fund 200,000 200,000 8418 Hesse Park Parking Lot & Lighting Improvements Project - Construction 330 - CIP Fund - 750,000 8419 Hesse Park Athletic Field Improvement Project 330 - CIP Fund - 392,420 8421 PVIC Park Improvements - Master Plan 330 - CIP Fund 50,000 8421 PVIC Park Improvements 330 - CIP Fund - 700,000 Parking Lot Lighting Improvements at Point Vicente Interpretive Center (PVIC)211 - 1911 Act 50,000 Lower Hesse Park Improvements 330 - CIP Fund 1,500,000 Restoration of "Bubbles" Statue 330 - CIP Fund 200,000 Total Park Sites 250,000 50,000 - - - 3,742,420 Trails Nature Preserve Gate for Burma Road Trail 330 - CIP Fund 100,000 Nature Preserve Gate for Rattlesnake Trail 330 - CIP Fund 100,000 Total Trails 200,000 - - - - - Public Buildings 8507 PVIC Lift Station Upgrade 330 - CIP Fund - 30,000 200,000 8503 Civic Center Master Plan 330 - CIP Fund 151,000 8504 Citywide ADA Transition Plan 330 - CIP Fund 150,000 Restroom Improvements (indoor & outdoor) at PVIC 330 - CIP Fund 150,000 Civic Center (the Storm Room) Improvements 330 - CIP Fund 100,000 Total Public Buildings 301,000 150,000 - 30,000 200,000 100,000 Storm Water System - Stormwater Quality 8701 Storm Drain Lining Program 330 - CIP Fund - 450,000 8711 Bayend Drive Catch Basin Inlets and Storm Sewer Lateral - Construction 330 - CIP Fund - 170,000 8713 Upper Point Vicente Stormwater Runoff Control Project (Helipad)330 - CIP Fund - 200,000 8714 Crest Road to Crestridge Canyon Storm Drain Project - Engineering 330 - CIP Fund - 8714 Crest Road to Crestridge Canyon Storm Drain Project - Construction 330 - CIP Fund - 1,285,000 8715 Storm Drain Deficiency Improvement (PVDS at Peppertree Dr. and Hawthorne Blvd. near Hawkhurst) - Construction 330 - CIP Fund - 2,750,000 8716 Hawthorne: Via de la Vis Shadow Wood; Amber Sky; Middlecrest; Oceanaire; Rue La Fleur; PVDS; Sasilina at Hawksmoor; Via Colinita; Vista Mesad; Via Colinita; Kingsridge - Engineering 330 - CIP Fund - 250,000 - 8716 Hawthorne: Via de la Vis Shadow Wood; Amber Sky; Middlecrest; Oceanaire; Rue La Fleur; PVDS; Sasilina at Hawksmoor; Via Colinita; Vista Mesad; Via Colinita; Kingsridge - Construction 330 - CIP Fund - 2,100,000 - DRAFT 5-YR CAPITAL IMPROVEMENT PROGRAM W:\Finance Mgmt\Budget\Budget 2021\2020-06-02 Budget Hearing\Final SR\Attachment B_2020-21 Draft 5 Year CIP.xlsx Printed: 5/20/2020 12:06 PM B-1 FY 2020-21 Draft 5-year Capital Improvement Program Project Code Project Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 TBD DRAFT 5-YR CAPITAL IMPROVEMENT PROGRAM 8717 Crestridge; Lightfoot; Via Colinita; Knoll View; Deluna; Schooner; Via Cambron; PVDW; Northern S. Western Ave; PVDS - Engineering 330 - CIP Fund - 350,000 - 8717 Crestridge; Lightfoot; Via Colinita; Knoll View; Deluna; Schooner; Via Cambron; PVDW; Northern S. Western Ave; PVDS - Construction 330 - CIP Fund - 3,330,300 Storm Drain Improvement at 6415 Corsini 330 - CIP Fund 20,000 250,000 Altamira Canyon Drainage and Erosion Control Project 330 - CIP Fund 350,000 Total Storm Water Quality 370,000 3,000,000 - 250,000 2,450,000 5,435,300 Right of Way and Traffic Control Devices 8001 Pavement Management Program Triennial Update 330 - CIP Fund - 120,000 - - 120,000 8004 Public Signs Replacement Program 330 - CIP Fund 50,000 250,000 - 8801 Sidewalk Repair and Replacement Program 220 - Measure R 250,000 250,000 250,000 250,000 8808 Crenshaw Blvd - Arterial Roads Rehab Project - Construction 330 - CIP Fund - 2,000,000 8809 Western Ave Traffic Congestion Improvements - Construction 330 - CIP Fund - 3,200,000 8811 Arterial Fences and Walls Standards - Citywide Master Plan 330 - CIP Fund - 25,000 8811 Arterial Fences and Walls Standards - Citywide Engineering (Phase 2)330 - CIP Fund - 75,000 8811 Arterial Fences and Walls Standards - Citywide Construction (Phase 3)330 - CIP Fund - 1,000,000 8828 PVDS Intersections Improvement 330 - CIP Fund - 750,000 8837 Traffic Signal Light @ PVDS & PVDE 215 - Prop C 295,000 8838 Traffic Signal Light @ Hawthorne & Via Rivera 211 - 1911 Act 342,000 8816 Residential Street Rehabilitation Program Areas 1 - Engineering 220 - Measure R - 200,000 8816 Residential Street Rehabilitation Program Areas 1 - Construction 330 - CIP Fund - 2,361,600 - 8826 Residential Street Rehabilitation Program Areas 2 - Engineering 220 - Measure R - 305,700 8826 Residential Street Rehabilitation Program Areas 2 Construction 330 - CIP Fund - 2,200,800 - 8834 Residential Street Rehabilitation Program Areas 3&4 - Engineering 330 - CIP Fund - .318,700 8834 Residential Street Rehabilitation Program Areas 3&4 - Construction 330 - CIP Fund - 3,605,000 8815 Residential Street Rehabilitation Program Area 5 - Engineering 220 - Measure R - 200,000 8815 Residential Street Rehabilitation Program Area 5 - Survey 220 - Measure R - 150,000 8815 Residential Street Rehabilitation Program Area 5 - Construction 330 - CIP Fund - 2,198,800 8836 Residential Street Rehabilitation Program Areas 6 - Engineering 220 - Measure R - 305,700 Western Ave Beautification (Engineering)330 - CIP Fund 150,000 PVDE Widening and Path Improvements at Bronco 220 - Measure R 200,000 1,300,000 - PVDS Rehabilitation 330 - CIP Fund - 500,000 Indian Peak Road Rehabilitation 330 - CIP Fund - 500,000 PVDW Pedestrian Crossing 330 - CIP Fund - 1,000,000 PVDE Rehabilitation 330 - CIP Fund - 2,000,000 Silver Spur Road Rehabilitation 330 - CIP Fund - 2,000,000 Ganado Drive Beautification 330 - CIP Fund - 100,000 Total R/W and TCD 1,287,000 5,845,000 4,523,800 3,817,300 3,076,500 10,273,700 4,258,000 10,145,000 5,873,800 4,797,300 6,476,500 19,551,420 Total Approved Projects W:\Finance Mgmt\Budget\Budget 2021\2020-06-02 Budget Hearing\Final SR\Attachment B_2020-21 Draft 5 Year CIP.xlsx Printed: 5/20/2020 12:06 PM B-2 FY 2020-21 Draft 5-year Capital Improvement Program DRAFT 5-YR CAPITAL IMPROVEMENT PROGRAM FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 TBD 202 - Gas Tax - - - - - - 211 - 1911 Act 342,000 50,000 - - - - 215 - Prop C 945,000 650,000 700,000 700,000 750,000 - 216 - Prop A - - - - - - 220 - Measure R 450,000 1,500,000 250,000 455,700 755,700 250,000 225 - Ab Cove Sewer - 450,000 650,000 - - - 228 - Donor Restricted - - - - - - 310 - CDBG - - - - - - 330 - CIP Fund 2,521,000 7,495,000 4,273,800 3,641,600 4,970,800 19,301,420 332 - State Grants - - - - - - 334 - Quimby - - - - - - 4,258,000 10,145,000 5,873,800 4,797,300 6,476,500 19,551,420 W:\Finance Mgmt\Budget\Budget 2021\2020-06-02 Budget Hearing\Final SR\Attachment B_2020-21 Draft 5 Year CIP.xlsx Printed: 5/20/2020 12:06 PM B-3 1 Trang Nguyen From:Trang Nguyen Sent:Tuesday, May 26, 2020 11:26 AM To:SUNSHINE Cc:CC; CityClerk Subject:RE: What is and isn't in the draft budget? Good morning Ms. Sunshine, The FY 19-20 budget is available on the City’s website. You can click on this link http://rpvca.gov/DocumentCenter/View/14760/FY19-20-Adopted-Budget-PDF?bidId= to view the budget book. The details of the budget are in the justification pages for each department. For FY 20- 21, the City has completed two budget workshops that included a review of the General Fund and the Capital Improvement Program, held a preliminary budget meeting, and there will be public hearings on June 2 and June 16. You can also view all the staff reports (April 13, April 27, May 19) related to budget at http://rpvca.gov/772/City-Meeting-Video-and-Agendas. The FY 20-21 budget book with details will be available at the end of August. As for who will be notified if the work is not funded, the City Council and the public will be notified if a program is not being funded during the budget process. Any projects that come up after the budget process will be taken to the City Council for consideration.   Please contact me if you have any additional questions. Thank you for your continuous support and I hope you had a wonderful weekend. Trang Nguyen Director of Finance ___________________________________ 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 310-544-5278 (telephone) 310-544-5293 (fax) tnguyen@rpvca.gov www.rpvca.gov City Hall is open to the public during regular business hours. To help prevent the spread of COVID- 19, visitors are required to wear face coverings and adhere to physical distancing guidelines. Some employees are working on rotation and may be working remotely. If you need to visit City Hall, please schedule an appointment in advance by calling the appropriate department and follow all posted directions during your visit. Walk-ups are limited to one person at a time. Please note that our C-1 2 response to your inquiry could be delayed. For a list of department phone numbers, visit the Staff Directory on the City website. From: SUNSHINE <sunshinerpv@aol.com>   Sent: Monday, May 25, 2020 12:37 PM  To: Trang Nguyen <Tnguyen@rpvca.gov>  Cc: CC <CC@rpvca.gov>; CityClerk <CityClerk@rpvca.gov>  Subject: What is and isn't in the draft budget?  Hello Trang, I am writing directly to you because at this late stage in the FY 20-21 Budget process, I still can't find whether or not certain "action Items" are adequately funded. It appears that each Item requires Staff Time from multiple departments/divisions and there is no identified "holder of the purse strings" to make sure that work is coordinated in a timely and cost-effective manner. Please advise how I can look up what was in the FY 19-20 Budget and what is proposed for FY 20-21. Who should get a "heads up" if this work is not funded? TNX. Sunshine 310-377-8761 1. Living Documents. Our General Plan, Coastal Specific Plan, Parks Master Plan, Trails Network Plan and now our Natural Communities Conservation Plan, all contain "Goals and Policies". Whenever progress toward a Goal is made, particularly when the recording of a document with the LA County Recorder or a "Ribbon Cutting Ceremony takes place, the primary Document is to be wordsmithed/updated and official maps, GIS'd. 2. Encroachment Permits. Public Works has a document called the ENCROACHMENT PERMITS MAP. It is not "lot specific". It divides the City into nine "Project Areas". Recently, I have seen a computer-generated map with similar City divisions for Residential Roadway Rehabilitation which impacts a lot of encroachments. Also, Staff has been working on updating the Trails Network Plan which includes a Conceptual Trails Plan (CTP) that divides the City into five Areas. Given that the preponderance of the non-motorized circulation in RPV is under the management of the Public Works Department, it has been suggested that the trails and the roadways preservation and enhancement activities use the same "Project Areas Map". Council has requested a focused area study on our encroachment history and policies. The northern portion of Palos Verdes Drive East is in the CTP's area five and the Encroachment Permit's area 8. This portion of PVDE is not covered in the City's STREET STANDARDS STUDY. All this info is to be integrated and available via our GIS data base and web site. 3. Non-motorized circulation and emergency preparedness infrastructure maintenance. Some of this is covered by the Infrastructure Management Advisory Committee's priority recommendations. Smaller projects/needs/wants are to be included with the design/scope of work of proposed projects which impact the same geographic area. For instance, Altamira Canyon erosion control, Abalone Cove habitat planting, California Coastal Trail blufftop trail completion across C-2 3 Altamira Canyon and landslide remediation are all being pursued on essentially the same five acres of City owned land. Subject: More on ROW encroachments, NOW Date: 5/24/2020 8:34:35 PM Pacific Standard Time From: sunshinerpv@aol.com To: cc@rpvca.gov, cityclerk@rpvca.gov Cc: trodrigue@rpvca.gov, jyoon@rpvca.gov Sent from the Internet (Details) Hello Council Members, There is an urgent matter coming back to the Planning Commission. This is a residential development application which has been in "the system" so long that Staff asked the Commission to ask the Applicant for a time extension rather than deny the project. 28160 PVDE is either the result of a City Planner working in a vacuum or a City Planner being directed to move the project forward without consideration for the community she works for. Either way, driveways onto an arterial highway, permits for permanent encroachments in the public ROW, no consideration for off-road circulation, no proposal for traffic calming, conflicting codes for grading on extreme slopes, no early consultation with trail user advisors, no comment on Wildfire Management and Fire Department input on only the access to the structure, not to mention all the requests for variances for other "wants"… does not make for a "quality project". Since this lot did not get declared "unbuildable" when the application first arrived at the Planning counter, I sure hope that our City Attorney can come up with a way for the Planning Commission to get us out of this jam. Then, I hope that there is funding in the proposed FY20-21 budget for the Public Works Dept to get a grip on the day to day needs for our City's infrastructure to be "preserved and enhanced" as a residential community as opposed to just a nature preserve here in paradise. C-3 4 Tick tock, …S C-4