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CC SR 20210601 02 - Budget Hearing_Final PUBLIC HEARING Date: June 1, 2021 Subject: Consideration and possible action to conduct a public hearing on the Fiscal Year 202 1- 22 Draft Budget for all City’s funds, the Five-Year Capital Improvement Program, and Improvement Authorities. Recommendation: 1. Conduct a public hearing on the FY 2021-22 Budget of all City’s funds, the Five-Year Capital Improvement Program, and Improvement Authorities; and 2. Continue the public hearing to June 15, 2021. 3. Report of Notice Given: City Clerk Takaoka 4. Declare Public Hearing Open: Mayor Alegria 5. Request for Staff Report: Mayor Alegria 6. Staff Report & Recommendation: Trang Nguyen, Director of Finance 7. Council Questions of Staff (factual and without bias): 8. 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 spea kers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Alegria 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: 06/01/2021 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to conduct a public hearing on the Fiscal Year 2021- 2022 Budget for all City’s funds, the Five-Year Capital Improvement Program, and Improvement Authorities. RECOMMENDED COUNCIL ACTION: (1) Conduct a public hearing on the FY 2021-22 Budget of all City’s funds, the Five- Year Capital Improvement Program, and Improvement Authorities; and (2) Continue the public hearing to June 15, 2021. FISCAL IMPACT: The Citywide FY 2021-22 Budget includes total revenues of about $42.9 million and total expenditures of almost $44.5 million, including transfers and Improvement Authorities. The total General Fund revenues of almost $30.1 million and expenditures of $27.4 million, excluding transfers. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): None ORIGINATED BY: Christopher Browning, Senior Administrative Analyst Vina Ramos, Deputy Director of Finance REVIEWED BY: Trang Nguyen, Director of Finance APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. FY 2021-22 Budget Summary (page A-1) B. FY 2021-22 CIP Budget and 5-year CIP (page B-1) C. One-time vs. recurring revenues and expenditures (C-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, 1 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 is the second year that the City’s budget process included the projected financial impacts from the COVID-19 pandemic. As demonstrated in the report, though revenues that were impacted have not fully recovered, Staff continues to see positive recovery trends in the City’s primary sources of revenues. One of the City’s primary revenue sources impacted the most by this health pandemic is the Transient Occupancy Tax (TOT). Since this revenue mainly supports the Capital Improvement Program (CIP), the drop in the revenues in the past two years has resulted in another year of reassessment of the capital projects, focusing on projects that were ranked the highest and maximizing the restricted funds for the city capital needs. The rankings on projects were based on available funding sources in FY 202 1- 22, immediate needs centered on public safety concerns, mandated by federal/state/local governments, and supports the City Council Goals. The City’s operating fund, the General Fund, is estimated to end FY 2021 -22 with an Unrestricted Excess Reserve (surplus) of approximately $8.8 million, after applying the 50% City Council’s Policy Reserve of $13.7 million which is primarily attributed to the City’s solid financial foundation, financially conservative approach, and stable Property Tax revenues. This surplus also accounts for funding for FY 2021-22 City Council Goals, the first year of transfers to Employee Pension Service Fund to address the City’s pension liability, and additional transfers to CIP to replenish revenue loss from the prior year. Budget Process The City’s budget process starts with the City Council Goals Workshop. This workshop is for the City Council to review the progress of the current FY 2020-21 City Council Goals. At this workshop, the City Council also sets the framework for the FY 2021-22 Goals and directs Staff on the priorities for the upcoming budget. Next are the Budget Workshops, which documents the budget assumptions based on midyear figures framing 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 Committee (IMAC), and the Planning Commission (PC). After the budget workshops, Staff presents the Preliminary Budget as a regular business at a City Council meeting. Staff reports the changes from the Budget Workshops to the Preliminary Budget based on third-quarter figures, including the CIP Fund, Special Revenue Funds, and the Equipment Replacement Fund. In this meeting, Staff confirms that the Preliminary Budget presented is in accordance with City Council Policy No. 45, Balanced Operating Budget. The policy is to ensure that the City Council 2 adopts a structurally balanced budget, where recurring revenues are greater than or equal to recurring expenditures. After completing the FY 2021-22 City Council Goals in February, two FY 2020-21 Budget Workshops in March/April, and the review of the Pre liminary Budget in May, the City Council is then presented the FY 2021-22 Budget at a duly noticed public hearing. Tonight, 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 budgets to the estimated year-end results. Additionally, this report highlights the summary for FY 2020-21 General Fund Balance and the FY 2021-22 Budget Assumptions for General Fund, Capital Infrastructure Project Fund, Special Revenue Funds, and Equipment Replacement Fund. As illustrated below, if the budget presented this evening is accepted, the City Council may consider adopting the budget on June 15. DISCUSSION: FY 2020-21 General Fund Year-end Estimates Updates As presented at the Preliminary Budget on May 18, 2021, the General Fund revenues are estimated to end at approximately $28.5 million, and expenditures are estimated to end slightly over $27.8 million, net of transfers. The estimated year-end is inclusive of over $1.7 million or 6% savings, which is a combination of reduction of transfers to CIP and savings identified during midyear and third quarter reviews. Of this amount, over $1.1 million of the estimated savings are from citywide reduced operating activities, deferred/unfilled vacancies, and continuous prudent spending. The remaining $583,300 is a reduction of the transfers to CIP, based on the anticipated year-end for Transient Occupancy Taxes (TOT). The $1.7 million in savings is then offset by approximately $670,700 or 2% lower-than-expected revenues, mainly from TOT and Sales Tax. As a result, Staff estimates the General Fund would end the year with a fund balance of almost $22.5 million. After applying the City Council’s 50% Reserve Policy, the General Fund’s estimated Excess Unrestricted Fund Balance would be roughly $9.4 million, an increase of $1.6 million or 21% over FY 2020-21 Revised Budget. City Council Goals Workshop February 22 Budget Workshops March 30 (GF) April 12 (CIP) Preliminary Budget May 18 Public Hearing June 1 Budget Adoption June 15 3 Table 1 – FY 2020-21 YE General Fund Balance Estimates FY 2021-22 General Fund Budget Overview On May 18, 2021, Staff presented the Preliminary Budget at a regular scheduled City Council meeting. At this meeting, Staff reported the budget changes based on direction received at the City Council Goals Workshop held in February and the two Budget Workshops that were held in March and April. Subsequently, the results from the budget process were combined to develop the FY 2021-22 Budget. Overall, based on the assumptions that incorporate City Council’s directives and new additional information, Staff estimates that the FY 2021 -22 Operating Revenues is $30.1 million (before transfers-in) and Operating Expenditures of $27.1 million, before transfers-out and excluding one-time expenditures. Staff estimates a surplus of almost $3 million, before transfers-out and one-time expenditures. After applying the transfers and one-time expenditures, the General Fund is estimated to have a surplus of $62,300 by June 30, 2022. General Fund FY 2020-21 Revised Budget FY 2020-21 Year-End Estimates Beginning Fund Balance - 7/1/2020 21,748,709 21,748,709 Add: Revenues 28,969,900 28,299,200 (670,700)-2% Add: Transfers-In 230,000 230,000 - 0% Total Revenues 29,199,900 28,529,200 (670,700)-2% Less: Expenditures (27,353,386) (26,215,600) (1,137,786)-4% Less: Transfers to CIP (2,140,500) (1,557,200) (583,300)-27% Less: Other Transfers-Out (30,000) (30,000) - 0% Total Expenditures (29,523,886) (27,802,800) (1,721,086) -6% Unaudited Ending Fund Balance - 6/30/2021 21,424,723 22,475,109 1,050,386 5% 50% Reserve Policy 13,676,693 13,107,800 (568,893) -4% Unrestricted Excess/(Deficit) Reserve - 06/30/21 7,748,030 9,367,309 1,619,279 20.9% FY 2020-21 Variances 4 Table 2: General Fund Revenues and Expenditures Summary A detailed explanation of the budget assumptions for the FY 2021-22 Budget is provided below. FY 2021-22 General Fund Revenues: Staff is projecting an overall increase of $1.7 million or 6.2% in General Fund operating revenues (net of transfers) over the FY 2020-21 year-end estimates at third quarter. Table 3 – General Fund FY 2021-22 Preliminary Revenue Budget Below is a recap of the updates to the FY 2020-21 year-end estimates and the budget FY 2021-22 General Fund Revenues. Property Tax Property Tax continues to be the largest and historically most stable revenue source in the City. Revenue is projected to reach almost $15 million, an increase of 5% over FY 2020-21 year-end estimates. Revenue growth primarily comes from growth in assessed General Fund Recurring One-Time Total Opreating Revenues 30,075,700$ 30,075,700$ Less: Operating Expenditures (27,103,400) (315,000) (27,418,400) Structural Surplus/(Deficit) 2,972,300$ (315,000)$ 2,657,300$ Transfers-In 350,000 - 350,000 Less: Tranfers-Out 2,328,800 616,200 2,945,000 Surplus/(Deficit)993,500$ (931,200)$ 62,300$ Revenue Current Budget 3rd Qtr Year-End Estimate Budget Property Tax $14,129,700 $14,310,700 $14,960,300 $649,600 4.5% Transient Occupancy Tax 3,762,500 2,836,000 3,978,400 1,142,400 40.3% Sales Tax 2,312,300 1,972,300 2,163,400 191,100 9.7% Permits & Fees 1,819,200 1,805,500 2,083,100 277,600 15.4% Franchise Tax 2,167,500 2,150,000 2,150,000 0 0.0% Utility Users Tax 2,099,700 2,099,700 1,915,000 (184,700) -8.8% Other Taxes & Misc. Revenues 2,679,000 3,125,000 2,825,500 (299,500) -9.6% Subtotal $28,969,900 $28,299,200 $30,075,700 $1,776,500 6.3% Transfer 230,000 230,000 350,000 120,000 52.2% Total Revenues $29,199,900 $28,529,200 $30,425,700 $1,896,500 6.6% FY21-22 Budget vs. FY20-21 YE Estimates FY 2020-21 FY 2021-22 5 property values, which is capped at 2% annually. Additional growth can come from home sales which trigger property reassessments and Proposition 8 value recaptures. There are three primary factors that determine the annual change in property tax revenue received by the City: • Inflation (Based on the California Consumer Price Index – CCPI) All properties not reduced by Proposition 8 are subject to a maximum CCPI increase of 2% annually. For FY 2021-22, the County Assessor will be applying a 1.036% increase to these properties resulting in a $138 million increase to real property value within the City. • Transfer of Ownership (Sale of property to new owner) For those properties that have sold between January and December 2020, the increase in value has been factored into the property tax revenue calculation and provided an additional $294 million in property value. • Proposition 8 Recapture (Additional increase in assessed property value) Proposition 8 allows for properties that have experienced a decrease in value due to a downturn in the housing market to have the value used in the calculation of their property tax be based on the current market price. As home values recover, properties that received this relief can experience an annual increase in assessed value at a rate greater than the 2% CCPI limit mentioned above. This recapture in value accounted for an additional $41 million in property value. The three factors mentioned above plus several other factors used in the calculation of property tax combined to make an expected 3.52% increase in overall property value. This increase plus Property Tax Transfer revenue, which is generated when a property is sold, property tax revenue received in lieu of vehicle license fees, and other small revenue sources were used in creating the projection of almost $15 million for FY 2021 - 22. Property Taxes FY 2020-21 Current Budget: $14,129,700 FY 2020-21 Year-End Estimate: $14,310,700 FY 2021-22 Budget: $14,960,300 Net Change over YE: +$649,600 or 4.5% Transient Occupancy Tax (TOT) TOT revenue is generated by the 10% tax collected from hotels that are located within the City. The tax imposed on any hotel is based on temporary occupancy, meaning a period of thirty consecutive days or less. The City receives about 98% of the TOT revenue from the Terranea Resort. For FY 2021-22, TOT revenue is projected to reach nearly $4 million, an increase of 40.3% over FY 2020-21 year-end estimates. 6 Although revenue is increasing due to an increase in demand and less state-wide restrictions, it is still unknown when business travel will resume, and how severe the impact will be on potential future revenue. For this reason, staff remains cautious in its estimates. The vast majority of this increase is from an increase in revenue from Terranea Resort. Projections show TOT revenue from Terranea increasing from $2.7 million during FY 2020-21 to $3.8 million in FY 2021-22. The City also receives TOT revenue from another smaller hotel which make up the remaining 2% of TOT revenue. This property is expected to generate $160,000 during FY 2021-22. Overall, TOT revenue is projected to recover but is still $2.6 million or 40% below the $5.6 million in revenue received during FY 2018-19. As leisure and business travel return, Staff will continue to monitor the recovery of TOT revenue. Transient Occupancy Tax FY 2020-21 Current Budget: $3,762,500 FY 2020-21 Year-End Estimate: $2,836,000 FY 2021-22 Budget: $3,978,400 Net Change over YE: +$1,142,400 or 40.3% Sales and Use Tax During Staff’s preliminary analysis, revenue is projected to increase by $191,100 or 9.7% reaching over $2.1 million in FY 2021-22 compared to the FY 2020-21 year-end estimate. This growth is projected result from a more stable and consistent reopening of businesses across the state. This estimate brings revenue in line with what the City received during FY 2019-20. As we proceed through the remainder of FY 2020-21, a clearer picture should develop of future sales tax revenue. Staff will continue to monitor this revenue source and provide updates if necessary. Sales and Use Tax FY 2020-21 Current Budget: $2,312,300 FY 2020-21 Year-End Estimate: $1,972,300 FY 2021-22 Budget: $2,163,400 Net Change over YE: +$191,100 or 9.7% Permits and Fees This revenue source is comprised of roughly 17 permit and fee types, such as building and safety permits, plan check permits, planning, and zoning permits, and animal licenses. Due to the variety of items, revenue can vary from year-to-year. Revenue has been adjusted from the original year-end estimate of just under $1.88 million to $2.08 million, a $77,600 or 4.3% increase over year-end estimates, to reflect the approval of the new Master Fee Schedule by the City Council on April 20, 2021. The adoption of the new fee schedule is projected to produce approximately $240,000 in new revenue. Staff 7 is accounting for a slightly more conservative increase of $200,000 as Staff monitors the inflow of permits and fees revenue over the upcoming fiscal year. Permits and Fees FY 2020-21 Current Budget: $1,819,200 FY 2020-21 Year-End Estimate: $1,805,500 FY 2021-22 Budget: $2,083,100 Net Change over YE: +$277,600 or 15.4% Franchise Tax Staff is projecting that franchise tax revenue will remain flat compared to FY 2020-21 year-end estimates, with $2.15 million in revenue. 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 are the consumption and price of natural gas. Staff uses historical data and industry projections for this revenue estimate. FY 2021-22 revenue is projected to remain relatively flat, and Staff is not anticipating any significant impact to this revenue source. Franchise Taxes FY 2020-21 Current Budget: $2,167,500 FY 2020-21 Year-End Estimate: $2,150,000 FY 2021-22 Budget: $2,150,000 Net Change over YE: No changes Utility User Tax (UUT) Revenue is projected to decrease by $184,700 or 8.8%, reaching $1.9 million in FY 2021-22 compared to the FY 2020-21 year-end estimate. UUT is dependent on outside factors, including weather conditions, consumption of utilities, natural gas prices, and rate increases. Staff used historical data, information available pertaining to the cost 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. For FY 2021-22, Staff projects revenue will return to levels experienced prior to the pandemic as workers return to offices and at home utility usage falls. A decrease of $184,700 or 8.8% compared to FY 2020-21 year-end estimates is projected. UUT FY 2020-21 Current Budget: $2,099,700 FY 2020-21 Year-End Estimate: $2,099,700 FY 2021-22 Budget: $1,915,000 Net Change over YE: - $184,700 or -8.8% 8 Other Taxes and Miscellaneous Revenues During Staff’s analysis, revenue is projected to decrease by $299,500 or 9.6% reaching over $2.8 million in FY 2021-22 compared to the FY 2020-21 year-end estimate. This revenue category consists of over 20 unique revenue sources including business license tax, golf tax, interest earnings, rental/lease, and parking lot fees. This revenue source can vary widely from year to year due to the various revenue sources included in this category. Other Taxes & Miscellaneous Revenues FY 2020-21 Current Budget: $2,679,000 FY 2020-21 Year-End Estimate: $3,125,000 FY 2021-22 Budget: $2,825,500 Net Change over YE: - $299,500 or -9.6% Chart 1 – General Fund FY 2021-22 Revenue Budget FY 2021-22 General Fund Expenditures: Overall, the General Fund expenditures, including transfers out, are anticipated to increase by almost $2.6 million or 9.2% over the FY 2020-21 third quarter year-end estimates. Of this increase, almost $1.4 million or 86% over year-end estimates is from the Transfers-Out category, mainly from the approval of one-time additional TOT transfers to CIP, additional TOT transfers from the increased revenue projections, and a one-time transfer to the Employee Pension Service Fund. The remaining increase of almost $1.2 million or 4% over year-end estimates is a combination of savings from the non-personnel category and an increase in the personnel category. A detailed 9 explanation of the budget assumptions for the FY 2021-22 Budget for Expenditures is provided below. Chart 2 and Table 4 below illustrate the comparison of the budget for FY 2020-21 Revised Budget, FY 2021-22 Year-End Estimates, and FY 2021-22 Budget. Chart 2 – FY 2020-21 and FY 2021-22 Budget Comparison Table 4 – FY 2020-21 and FY 2021-22 Budget Comparison FY 2021-22 Expenditure Type Revised Budget 3rd Qtr Year- End Estimates Budget Salaries $8,338,100 $7,382,363 $8,601,400 $1,219,037 16.5% Benefits 2,736,900 2,710,515 3,377,700 $667,185 24.6% City Attorney 975,000 905,000 940,000 $35,000 3.9% Sheriff Contract 7,110,900 7,101,900 7,150,200 $48,300 0.7% Supplies 608,025 514,402 574,500 $60,098 11.7% Professional/Technical 3,025,946 3,127,200 2,571,700 ($555,500) -17.8% Repairs/Maintenance 3,067,940 2,958,620 2,517,400 ($441,220) -14.9% Training/Conference 311,400 258,246 325,100 $66,854 25.9% General Liabilities Premium 769,600 769,600 735,400 ($34,200) -4.4% Equipment Replacement 93,600 93,600 281,500 $187,900 200.7% Other Misc Expense 315,975 394,155 343,500 ($50,655) -12.9% Total Opreating Expenditures $27,353,386 $26,215,600 $27,418,400 $1,202,800 4.6% Transfers Out 2,170,500 1,587,200 2,945,000 1,357,800 85.5% Total Expenditures $29,523,886 $27,802,800 $30,363,400 $2,560,600 9.2% FY 21-22 Budget vs. FY 20-21 Estimates FY 2020-21 10 Personnel Costs Personnel costs account for the salaries and benefits for City employees, including full- time, part-time, City Council, and Planning Commissioners. Overall, based on the assumptions, the personnel budget is estimated to reach almost $12 million or 39% of the budget, including transfers-out. This is an estimated increase of almost $1.9 million or 19% over year-end estimates. While the comparison between FY 2021-22 Budget to FY 2020-21 year-end estimates depicts a significant increase, this is mainly due to t he estimated savings of over $904,000 identified to end FY 20 20-21. The personnel savings are a combination of unspent budget from the de ferred recruitments and savings from park closures due to the Stay-at-Home Order. The FY 2021-22 Budget and the changes from the FY 2020-21 Year-end Estimates are highlighted below. Personnel Costs FY 20-21 Revised Budget: $11,075,000 FY 20-21 Year-end Estimate: $10,093,000 FY 21-22 Budget: $11,979,100 Net Change over YE: +$1,886,200 or 19% Salaries: Currently, the City is in the collective bargaining process with the Rancho Palos Verdes Employee Association (RPVEA). The agreement for the next fiscal year has not been finalized, hence, Staff estimated personnel costs for FY 2021-22 using the same terms from the contract currently in place. As reported in detail at the budget workshops, the significant increase in salaries resulted from restoring the funding for positions including Assistant Planner, Building Official, and Permit Technician, updating the Code Enforcement Officer position to Senior Code Enforcement Officer, new funding for three part-time parking enforcement Staff for Palos Verdes Nature Preserve, and 2.2% of COLA and merit increases based on the City’s current Memorandum of Understanding with RPVEA. The estimated budget for salaries in FY 2021-22 is $8.6 million, a projected increase of approximately $1.2 million or 17% over the FY 2020-21 year-end estimates. To contain salary increases, salary savings have been included, such as continuing partial funding for some positions through deferred recruitments. Major budget assumptions that account for $8.6 million in salaries for FY 2021-22 Budget are as follows for each department: • City Administration $1.4 million or 17% • Community Development $2.1 million or 24% • Finance $993,700 or 12% • Public Works $1.8 million or 21% 11 • Recreation and Parks $2.2 million or 26% • Includes Citywide over-time salaries of $78,900 or 1% The following highlights the major changes between the FY 2020-21 Year-End estimates and the FY 2021-22 Budget. • $225,700 has been added to fund 100% for the Building Official and Assistant Planner positions in the Community Development Department. In the FY 2020-21 revised budget, both positions were funded at 75% and 50%, respectively. Therefore, the net increase is $74,900 to fully restore the positions in FY 2021- 22. • $65,500 has been added to restore the funding for the vacant Permit Technician position in the Community Development Department. • $12,000 has been added to update the Code Enforcement Officer position to Senior Code Enforcement Officer in the Community Developme nt Department. • $76,000 accounts for new programs for Parking Enforcement Staff at the Palos Verdes Nature Preserve. o Includes salaries for three part-time Staff, 25 hours a week. • $353,700 accounts for COLA and estimated merit increases for full-time employees based on the current contract between the City and RPVEA. o 2.2% COLA based on Consumer Price Index (CPI-U) in the Los Angeles- Long Beach-Anaheim for March 2021. o Merit/merit bonus at an average of 3%. o Amounts are subject to change based upon the final agreement between the City and RPVEA. • To achieve the least amount of growth in salaries, the estimated increases in salaries are offset by additional savings realized from streamlining the projections for Recreation and Parks part-time salaries, lower overall costs for newly hired employees and future employees, and underfilling the following positions: • Staff Assistant I in the Public Works Department • Accountant in the Finance Department • Accounting Supervisor in the Finance Department • For cost savings, several vacant positions in the past few years have been frozen and are excluded in the current FY 2020-21 Revised Budget. While some positions have been restored, the following positions continue to remain frozen in the budget assumptions for FY 2021-22: • Executive Assistant in the City Manager’s Office • Assistant Planner in the Community Development Department • Senior Engineer in the Public Works Department Employee Benefits: The estimated employee benefits for FY 2021-22 Budget is $3.4 million with a projected increase of approximately $667,200 or 25% over the FY 2020-21 year-end estimates. Most of the increases are attributed to the annual CalPERS unfunded actuarial liability 12 payment, increased benefit rates, and additional benefit costs for restored and new positions. The major highlights for the budget assumptions to develop benefits of $3.4 million for FY 2021-22 are the following: • $1.1 million has been added for the CalPERS Unfunded Actuarial Liability payment, an increase of $201,000 or 23% over the FY 2020-21 year-end estimates. The payment is the City’s unfunded liability inclusive of current employees and retired employees in Tier 1, Tier 2, and Tier 3. Of the $1.1 million required payment, the estimated amount for Tier 1 is $1 million or 97%, Tier 2 is estimated at $21,200 or 2%, and Tier 3 is $11,600 or 1%. • $667,100 has been added for the CalPERS normal rate payment, an increase of $45,300 or 7% over the FY 2020-21 year-end estimates. The payment is the City’s normal cost for current employees that are in Tier 1, Tier 2, and Tier 3. The estimated payments are $273,500 or 41% for Tier 1, $186,800 or 28% for Tier 2, and $206,800 or 31% for Tier 3. • $1 million accounts for health, dental, and vision. This is an estimated increase of $238,800 or 34% over year-end estimates, mainly due to the added 5% estimated cost increases for health benefits, additional benefits for restored positions, and increases in the contribution to Health Savings Account (HSA) aligned with the same amounts established by IRS. • $597,400 accounts for worker’s compensation, Medicare, retirement health savings, 401 matches, and group term life insurance. This an increase of $182,000 or 44% over year-end estimates. The increases are mainly from the FY 2021-22 estimated salaries and additional benefits for the restored and new positions. Non-Personnel Costs The non-personnel category includes the Los Angeles County Sheriff contract, legal services, professional and technical services, repairs and maintenance, supplies, training and conferences, and miscellaneous/other expenses. This category represents $15.4 million or 51% of the budget, including transfers out. The FY 2021-22 Budget includes a decrease of approximately $683,400 or 4% from FY 2020-21 year-end estimates. The decrease is a combination of the City taking the necessary and prudent steps to review operational spending to maximize the budget. In particular, most of the reductions are due to Staff identifying maintenance costs that are eligible for funding from special revenue funds, such as Measure W and Measure R, instead of the General Fund. Additionally, Staff reviewed the line item budgets, performed analysis using historical information, and adjusted the budget accordingly. The Finance Department and Department Heads carefully reviewed the adjustments with final approval from the City Manager to verify that the requested budgets accurately line up with the City’s anticipated needs while maintaining current high service levels to the community. 13 Non-Personnel Costs FY 20-21 Revised Budget: $16,278,400 FY 20-21 Year-end Estimate: $16,122,700 FY 21-22 Budget: $15,439,300 Net Change over YE: -$683,400 or 4% The major highlights for the budget assumptions to develop the non-personnel budget of $15.4 million for FY 2021-22 are as follows: Sheriff’s Contract: • Accounts for almost $7.2 million or 24% of the budget, including transfers out. • Includes Sheriff Contract increase of $101,000 or 1% over FY 2020-21 contract. The slight increase is due to dramatic budget curtailments and overtime mitigation. • Includes general law safety services and 11% liability insurance. Legal Services: • Accounts for $940,000 or 3% of the budget, including transfers out. • The City contracts with Aleshire & Wynder, LLP for general legal services, litigation, code enforcement, labor negotiations, and legal services related to public records act requests. • The FY 2021-22 Budget increases approximately $35,000 or 4% over FY 2020- 21 year-end estimates, primarily from lower litigation needs in FY 2021-22. Professional and Technical Services: • Accounts for approximately $2.6 million or 8% of the budget, including transfers out. • Majority of this category includes managed information technology services, RPVtv, engineering, environmental planning, code enforcement, flagging/crossing guard services, recreation program instructors, special events, inspections, the peafowl program, other legal services, audit services, and other miscellaneous consulting services. Additionally, if needed, this category includes staff augmentation services to address the staffing shortages from the unfilled vacant positions. • The budget decreased by approximately $871,000 or 28% over year-end estimates. The main decreased amount is a combination of estimated savings listed below: o City Clerk’s election costs are estimated to decrease by $135,000 due to one- time costs from the prior year are no longer needed in FY 2021-22. o Public Works’ services are expected to have a net decrease over FY 2020-21 year-end estimates of roughly $424,000. The reduction is attributed to Staff identifying maintenance costs that are eligible to be funded from special revenue funds instead of General Fund. About $320,000 of the reduction in the General Fund is allocated to Measure W. Additionally, Staff identified further cost savings by maximizing and reducing contract costs. 14 o Community Development’s services are expected to have a net decrease of about $312,000 over year-end estimates. The major reduction is from one- time cost in FY 2020-21 in the amount of $240,000 for the Housing Element Update Project. The remaining savings are attributed to less budget for augmentation of services for planning and building safety from restoring the funding for salaries of vacant positions. • The savings above of $870,000 are offset by the one-time estimated costs of $315,000 for the FY 2021-22 City Council Goals listed below. As such, the net decrease in this category is approximately $556,00 over FY 2020-21 year-end estimates. o $100,000 (Public Works) – in coordination with SCE, develop a Utility Resilient Advancement Master Plan to harden above -ground utility lines including a tentative timeline to potentially underground utilities; and continue to lobby the California Public Utilities Commission to modify the requirements for Rule 20A undergrounding funds to include high fire risk areas. o $50,000 (Public Works) - identify alternative energy resources with the capability to store energy or sell it back to the grid system, which could power the City. The first phase is to identify potential alternative energy and the cost associated with this plan. o $40,000 (Public Works) - Develop an Arterial Fences and Walls Master Plan for the City Council’s consideration that retains neighborhood identity and describes the type (material and height) of fence or wall, if any, to be placed along major arterial streets in the City. o $50,000 (Community Development) - develop a SWOT analysis of commercial properties along Western Avenue to identify economic development opportunities to enhance retail establishments and create mixed-use projects. o $75,000 (Recreation and Parks) - host five City-sponsored events or activities at the Civic Center throughout the fiscal year. Repairs and Maintenance: • Accounts for $2.5 million or 8% of the budget, including transfers out. • 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 also include annual repairs and maintenance for hardware, software, City Hall, streets, parks, trails, open space, trees, traffic, stormwater, and vehicles. Additionally, the fuel modification program and City- wide utilities are included in this category. • The FY 2021-22 Budget is estimated to decrease by approximately $441,000 or 15% from FY 2020-21 year-end estimates and are as follows: o Projected to have a net decrease of $200,000 from reviewing operational spending and identifying potential cost savings from various contracts. 15 o Additional $100,000 budget reduction for pavement and marking maintenance services. Staff identified that this maintenance is eligible to be funded by a special revenue fund, Measure R. o Additional reduction of $165,000 from the Storm Water Quality maintenance . The services were identified as eligible for Measure W funding. o $25,000 has been added to the budget for reinstating the Neighborhood Beautification Program, mainly to maintain neighborhood entry signs and landscaping. Supplies, Training and Conference, Other Miscellaneous Expense: • The remaining non-personnel costs are supplies, training and conference, and other miscellaneous expenses, which represents almost $1.7 million or 6%, including transfers out. • Majority of this category includes supplies for custodial, building, office, repairs, small equipment, parks, special events, programs, training and conference, bank fees, property tax assessments, general liabilities premium, and equipment replacement charges. • Supplies is estimated at $574,500 or 2% of the budget, the premium for the general liabilities is estimated at $735,400 or 2%, equipment replacement charges is estimated at $281,500 or 1%, and the remaining $343,500 or 1% of the budget is for other miscellaneous expenses. • The FY 2021-22 Budget increase by approximately $170,000 or 11% from the FY 2020-21 year-end estimates. The increase is mainly from increasing the funding for the equipment replacement charges that are saved for future purchases. Transfers Out The Transfers-Out category in expenditures in FY 2021-22 Budget includes the transfers to the CIP, Employee Pension Service Fund, and other funds such as the City’s Improvement Authority for Portuguese Bend and Sub-region One. Overall, Staff estimates approximately $2.9 million or 10% of the budget. This is an increase of approximately $1.4 million or 86% over FY 2002-21 year-end estimates, mainly from the approval of one-time additional TOT transfers to CIP, additional TOT transfers from the increased revenue projections, and a one-time transfer to the Employee Pension Service Fund. Transfers-Out FY 20-21 Revised Budget: $2,170,500 FY 21-22 Proposed Budget: $1,587,200 FY 21-22 Budget: $2,945,000 Net Change over YE: +$1,357,800 or +86% Transfers-Out to CIP: The transfer out of General Fund revenue to the CIP Fund has been a factor of the City’s public safety contract with the Los Angeles County Sheriff’s Department since FY 2017-18. In FY 2017-2018, with the City Council’s goal to continue to enhance public 16 safety services for the residents of Rancho Palos Verdes, the City Council approved reducing the TOT transfers to the CIP Fund by the cumulative annual increases in the public safety contract. As a result, the cost increases of the public safety contract reduced the transfers to the CIP. For FY 2021-22, Staff estimates receiving approximately $3.8 million in TOT revenue from Terranea. Based on this estimate, the TOT transfer to the CIP Fund is approximately $2.2 million or 7% of the budget after applying the cumulative annual increases since FY 2017-18 of $1.6 million in the public safety contract as illustrated in Table 5. 17 Table 5: FY 2021-22 Transfers Out to CIP Additionally, at the budget workshops, in accordance with City Council Policy No. 41 Reserve Policies, the City Council approved an additional General Fund transfers to CIP in the amount of $309,200. The additional transfer is to mitigate the reduced transfers due to the revenue loss from TOT in FY 2020-21 and the anticipated loss in FY 2021-22. With the additional transfer, the total estimated General Fund Transfers- Out to CIP for FY 2021-22 Budget is almost $2.6 million, an increase of almost $1 million or 64% over FY 2020-21 year-end estimates. Transfers-Out to Employee Pension Services Fund: During the budget workshops, the City Council also approved the first annual transfer of $307,000 to the Employee Pension Service Fund. The transfer was approved based on the estimated surplus in the FY 2021-22 Proposed Budget. Pursuant to the CalPERS Pension Plan Guidelines approved in February 2021, the transfer is part of the City’s financial plan to set aside future funding for the City’s pension liability. The balance accumulated in the fund may help in the future, to relieve the General Fund in excess of the pension required payments of over $900,000. Other Transfers-Out: Additionally, other Transfers-Out includes General Fund transfers to Subregion One (Ocean Front Estates open space areas) and the Improvement Authority. During the budget workshops, Staff reported that the General Fund would need to transfer funds to subsidize Subregion One in the amount of $30,000 and the Improvement Authority for Portuguese Bend for $55,000, totaling $85,0 00 for FY 2021-22. In closing on expenditures, the following Charts illustrate the General Fund expenditures by Category and Department in Expenditures excluding Transfers-Out. FY 2021-22 TOT Estimates (Terranea)$3,800,000 Less Public Safety Increases:($1,556,200) FY 2017-2018: $893,000 FY 2018-2019: $200,500 FY 2019-2020: $260,800 FY 2020-2021: $101,000 FY 2021-2022: $100,900 FY 2021-22 Proposed Budget - Transfer to CIP $2,243,800 18 Chart 3– FY 2021-22 General Fund Expenditures by Category, Excluding Transfers-Out Chart 4 – FY 2021-22 General Fund Expenditures by Department, Including Transfers-Out 19 FY 2021-22 Estimated Fund Balance Based on the adjusted revenue projections and the identified additions to the expenditures during the City Council Goal Workshop, Budget Workshops, and Preliminary Budget meeting, the estimated General Fund balance on June 30, 2022, would be approximately $22.5 million. Compared to the FY 2020-21 year-end estimates of $22.4 million, the fund balance is projected to increase by $62,300. Additionally, the City Council Reserve Policy of 50% would increase by $601,400, resulting in a total of $539,100 or 6% reduction in Unrestricted Excess Reserve over FY 2020-21 year-end estimates. As previously mentioned, the majority of the reductions in reserves is due to the increase in additional transfers-out of almost $1.4 million or 86% over year-end estimates, mainly from the approval of one-time additional TOT transfers to CIP, additional TOT transfers from the increased revenue projections, and a one-time transfer to the Employee Pension Service Fund. Overall, FY 2021-22 is projected to end the year again with a healthy Unrestricted Excess Reserve of over $8.8 million, a decrease of $539,100 or 6% to the estimated year-end of the FY 2020-21 Unrestricted Excess Reserve, as summarized in Table 6 below. Table 6: FY 2021-22 Estimated Fund Balance FY 2021-22 One-Time and Recurring Revenues and Expenditures Pursuant to City Council Policy No. 45, Balanced Operating Budget, the City Council shall adopt an annual budget where recurring expenditures do not exceed recurring revenues and ongoing program expenditures are not funded with one -time revenue sources. In accordance with this policy, Attachment C, lists the details for FY 2021-22 General Fund Recurring vs. One-time Revenues and Expenditures. The FY 2021-22 Budget meets this General Fund FY 2020-21 Revised Budget FY 2020-21 Year-End Estimates FY 2021-22 Budget FY 2021-22 Changes % Changes Beginning Fund Balance - 7/1/2021 21,748,709 21,748,709 22,475,109 Add: Revenues 28,969,900 28,299,200 30,075,700 1,776,500 6% Add: Transfers-In 230,000 230,000 350,000 120,000 52% Total Revenues 29,199,900 28,529,200 30,425,700 1,896,500 7% Less: Expenditures (27,353,386) (26,215,600) (27,418,400) 1,202,800 5% Less: Transfers to CIP (2,140,500) (1,557,200) (2,553,000) 995,800 64% Less: Transfers to Pension - - (307,000) 307,000 100% Less: Other Transfers-Out (30,000) (30,000) (85,000) 55,000 183% Total Expenditures (29,523,886) (27,802,800) (30,363,400) 2,560,600 9% Unaudited Ending Fund Balance - 6/30/2022 21,424,723 22,475,109 22,537,409 62,300 0.3% 50% Reserve Policy 13,676,693 13,107,800 13,709,200 601,400 5% Unrestricted Excess/(Deficit) Reserve - 06/30/22 7,748,030 9,367,309 8,828,209 (539,100) -6% 20 requirement with a surplus of almost $3 million before one -time expenditures and transfers-out. After including all expenditures, the General Fund is estimated to have a surplus of $62,300. FY 2021-22 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 developing the CIP list. The CIP projects are funded by the General Fund TOT transfers (net of public safety cumulative increases) and Special Revenue Funds. In light of the COVID-19 pandemic, the FY 2021-22 Budget and the City’s CIP 5-Year Program were prepared differently for the second year, based on the available funding sources, mainly CIP Fund. Due to the revenue loss in TOT Taxes, the FY 2019-20 transfers from the General Fund to the CIP Fund came in lower by $1.9 million compared to FY 2018-19, which is the normal base year prior to COVID-19. Additionally, in FY 2020-21, the year-end is estimated at $1.6 million, which is almost $2.7 million lower from the FY 2018-19 year-end. Based on the direction resulting from the City Council Goals Workshop, Budget Workshops, and the Preliminary Budget Meeting, twenty-two projects are proposed to be funded in the FY 2021-22 Budget. The estimated amount for the projects is approximately $8 million that would be supported by the various funding sources consisting of CIP Fund and Special Revenue Funds as presented in the following tables below. The detailed capital project listing along with related project costs, funding sources, and project data sheets, are also attached to this (Attachment B). Table 7: FY 2021-22 Budget for CIP Projects – By Fund Fund Fund Name FY 2021-22 Preliminary Budget 202 Gas Tax 700,000 211 1911 Act 80,000 215 Prop C 995,000 220 Measure R 1,285,000 221 Measure M 150,000 221 Measure M (Grant)600,000 310 CDBG 150,000 330 CIP 2,945,000 331 Federal Grants 999,900 340 Bicycle & Ped (TDA)110,000 TOTAL $8,014,900 21 Table 8: FY 2021-22 CIP Projects Budget Overall, the estimated CIP fund balance at June 30, 2022, is over $25.1 million, and after applying the Council Required Policy reserve of $5 million, the estimated Restricted Excess Reserve (surplus) is almost $21 million. Special Revenues Special Revenues account for taxes and other revenues set aside for a specific or restricted purpose. 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 for 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 used to accumulate funding to replace City equipment, furniture, and vehicles at the end of the designated life cycle. The equipment replacement charges are General Fund 22 expenditures for all departments and the same amounts are then recorded as revenues in the ERF. Based on the recently modified City Council Policy No. 41 Reserve Policies, the City will maintain a minimum reserve of 75% but no more than 100% of the estimated replacement cost for equipment assets due to be replaced in the City’s next fiscal year. Staff estimates that ERF will continue to have excess reserves at the end of FY 2021- 22. Therefore, Staff is recommending annual charges of $308,400 to meet the minimum reserve of 75% instead of 100% of estimated replacement costs. The same amount is recorded as revenues in ERF plus an estimated interest earned of 22,000. For expenditures, the estimated amount, including depreciation, is approximately $707,800, or 30% of the total replacement value. The same as previous years, before replacing any fully funded equipment/vehicles, Staff will continue to assess the status and extend the life of the asset when possible. As a result, the projected fund balance on June 30, 2022 , is $1.9 million. After applying the $1.8 million City Council policy reserves, the ERF is estimated to end the year with an excess reserve of $135,600. Table 9 below summarizes the estimated FY 2021-22 fund balances for the CIP Fund and Special Revenue Funds. These fund balance amounts are based on estimated project costs, equipment needs, and other non-General Fund expenditures expected next year. Table 9 – Capital Improvement Program and Special Revenues Fund Balance Capital Improvement Equipment Replacement Special Revenues & Other Funds Estimated Beginning Fund Balance - 7/1/2021 25,263,924 2,282,600 14,213,223 Add: Revenues 200,000 330,400 8,936,700 Add: Transfers-In from General Fund 2,553,000 - 337,000 Total Revenues 2,753,000 330,400 9,273,700 Less: Expenditures (2,945,000) (707,800) (10,212,600) Less: Transfers-Out - - (350,000) Total Expenditures (2,945,000) (707,800) (10,562,600) Unaudited Ending Fund Balance - 6/30/2022 25,071,924 1,905,200 12,924,323 Restricted by City Council Policy (5,000,000) (1,769,600) (938,900) Restricted Excess/(Deficit) Reserve - 06/30/22 20,071,924 135,600 11,985,423 23 FY 2021-22 Improvement Authority (IA) The FY 2021-22 Budget for IA is divided into two (2) legally restricted funds, Abalone Cove and Portuguese Bend, and provides funding to maintain landslide mitigation resources in both geographic locations. At the end of FY 2020-21, the fund balance is estimated to be $24,600 for the Portuguese Bend IA Fund and $1,092,400 for the Abalone Cove IA Fund, respectively. The Abalone Cove IA Fund is expected to have an estimated spendable fund balance of $92,400 as the Horan agreement legally requires the City to set aside $1 million of the fund balance to maintain landslide abatement improvements constructed by the former Redevelopment Agency. In FY 2021-22, total expenditures are projected to be $125,000, and total revenues, including transfers, to be $63,000 for both funds in total. To address the deficit in the IA funds, a General Fund transfer of $55,000 and the use of spendable fund balance of $62,000 will be required. Based on FY 2021-22 budgeted revenues and expenditures, Staff is estimating that at the end of FY 2021-22, the Portuguese Bend IA Fund will have a remaining fund balance of $68 and the Abalone Cove IA Fund will have a remaining fund balance of $1,054,862 (Attachment B). Since interest earnings generated from available fund b alance is the sole revenue source for this budget, Staff anticipates maintenance costs will continue to outpace the projected revenues needed to cover them in future years. ADDITIONAL INFORMATION: Utility Users Tax Municipal Code Section 3.30.190 requires that the City Manager submits 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 City residents during a Municipal Election. The UUT is a source of revenue for the City that continues to be a necessary revenue for the City’s operating needs. During the budget workshops, the City Council approved to continue the 3% rate for UUT. Therefore, the FY 2021-22 Budget for General Fund Estimated Estimated Fund Balance Fund Balance Fund 7/1/2021 Revenues Transfers In Expenditures Transfers Out 6/30/2022 IMPROV AUTH PORTUGUESE BEND 24,568 500 55,000 80,000 - 68 IMPROV AUTH ABALONE COVE 1,092,362 7,500 - 45,000 - 1,054,862 TOTALS 1,116,930 8,000 55,000 125,000 - 1,054,930 FY 2021-22 IMPROVEMENT AUTHORITY SUMMARY OF FUNDS 24 includes approximately $2.1 million or approximately 7% of the total General Fund revenues. Financial Model Pursuant to City Council Policy No. 18, Five-Year Financial Model Updates (Model), Staff reviews the Model and provides annual updates to the City Council. The policy indicates that this process is necessary as part of the City Council’s deliberations on any new and increased revenue measures. Although there are no new increased revenue measures, historically, as part of the City’s annual budget process, Staff uses the Model as an additional tool to engage in discussions and provide guidance with decision making related to the City’s future financial health. The Model forecasts economic conditions, including scenarios of future sources of revenues and future spending. In December 2020, Mayor Alegria and the City Council asked Staff to expand the model to a ten-year or a more extended model. The expanded model would be an updated financial tool that may provide a longer-term financial outlook beyond five years. Additionally, at the March 30 Budget Workshop, the City Council asked Staff to incorporate a sensitivity analysis to the model. The sensitive analysis would account for the potential inflation in the future years. Staff has been working with the City’s consultant to explore these requests. Hence, on June 15, 2021, the revised Financial Model report will be presented to the City Council. Public Notice On May 13, 2021 and May 20, 2021, the public notice was published in the Peninsula News announcing tonight’s public hearing and the June 15, 2021 meeting for the City Council’s consideration to adopt the FY 2021-22 Budget consisting of the General Fund, Capital Improvement Program, Special Revenues, and Improvement Authorities. As of May 25, 2021, no public comment were received. Update on the American Rescue Plan Act (ARPA) At the Budget Workshops, Staff reported to the City Council that in the next few months, the City Council will be asked to consider funding options on a possible City allocation of $7.8 million from the $1.9 trillion American Rescue Plan Act of 2021 (ARPA). Since then, Staff continued to research ARPA and attended informational presentations that are available for local agencies. On May 10, 2021, the Department of Treasury issued the “Interim Final Rule” (or draft) to provide guidelines on the ARPA. There are no strings attached to the ARPA fund. There are consequences for not spending the fund in accordance with the guideline or by the deadline (December 2024). As such, the ARPA’s most current information is provided below. 25 Eligible Uses: Four Main Categories 1. Containing/mitigating COVID-19 or negative economic impact. 2. Premium pay for essential workers. 3. For government services to the extent of the loss of revenue. This category is the most pertinent to local agencies and defined as follows: • Directly provide services or aid to citizens. • Maintenance or pay-go funded building of infrastructure, including roads; • Modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; • Health services; • Environmental remediation; • School or educational services; and • The provision of police, fire, and other public safety services. 4. Investments in water, sewer, and broadband infrastructure. Ineligible Uses • Pension payments. • Replenishing of reserves. • Payment on any debt instruments. Timeline • $7.8 million allocation in two payments – the first payment is estimated to be disbursed in FY 2021-22, and the second payment is a year later. • Eligible costs incurred on March 3, 2021 and ending December 31, 2024. • City may “obligate” or commit the funds ending December 31, 2024 and expend by December 31, 2026. • Funds must be returned if not expended by December 31, 2026. Audit and Reporting Requirements • Single Audit Act for any projects over $750,000 • Interim Report due on August 31, 2021. The report is the City’s recipient’s expenditures by category at the summary level from the date of award to July 31, 2021. • Quarterly Report due on October 31, 2021. The report is for financial data for two quarters, including the type of projects funded, information on contracts, and sub- awards over $50,000. Guiding Principles The Government Finance Officers Association (GFOA) is an association that represents public finance officials in the United States and Canada that are deeply involved in planning, financing, and implementing thousands of governmental operations. On a regular basis, GFOA also issues best practices that are widely used by government agencies. The following are GFOA’s issued guiding principles on ARPA that may be considered by local agencies when discussing ARPA funds: 1. Temporary nature of ARPA Funds 26 o Care should be taken to avoid creating new programs or add -ons to existing programs that require an ongoing financial commitment. o Use of funds to cover operating deficits should be considered temporary. o Investment in critical infrastructure is particularly well- suited use of ARPA because it is a non-recurring expenditure that can be targeted to strategically important long-term assets that provide benefits over many years. However, care should be taken to assess any ongoing operating costs associated with the project. 2. Scanning and Partnering Efforts o Consider regional initiatives, including partnering with other ARPA recipients, especially regarding infrastructure efforts. 3. Take Time and Careful Consideration o Use other dedicated grants and programs first whenever possible and save ARPA funds for priorities not eligible for grants. o If possible, spread expenditures over the qualifying period to enhance budgetary and financial stability. o Consider all alternatives for the prudent use of ARPA prior to committing the resources. On May 18, 2021, the City Council approved the financing options that the Finance Advisory Committee recommended by using up to 50% of the ARPA allocation to fund the Ladera Linda Park and Community Center Project. This is based on the following reasons: o Project is ready and eligible for ARPA funds under “Government services to the extent of the loss of revenue”. o Due to the sudden revenue loss from the Transient Occupancy Tax (TOT) over the last 18 months, the City may use ARPA funds for the purpose of revenue replacement. The City’s estimated revenue loss since the pandemic is almost $4.7 million. o Under this category, the City may have more control over how funds can be used for capital projects. Whereas the other eligible uses are restricted for a specific purpose (i.e., infrastructure is listed for water, sewer, and broadband). • Timing. o The funding for ARPA must be obligated by December 31, 2024 and spent by December 31, 2026. Based on the current staffing capacity and the scheduled projects from the 5-year CIP presented to the City Council on April 12, 2021, FAC’s opinion is that it would seem unattainable to schedule additional capital projects and spend more than 50% of the ARPA funds by 2024. 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 2021-22 General Fund with an 27 estimated fund balance of almost $22.5 million, an increase of $62,300 over FY 2020- 21 year-end estimates. After applying the 50% City Council’s Policy Reserve of $13.7 million, the Unrestricted Excess Reserve would be $8.8 million. This is a reduction of over $539,100 or 6% over year-end estimates. Though, of this amount, as previously mentioned, almost $1.4 million or 86% over year-end estimates are one-time additional TOT transfers to CIP transfers to replenish the revenue loss in the prior year, additional TOT transfers from the increased revenue projections, and a one-time transfer to the Employee Pension Service Fund. The CIP Fund is estimated to end FY 2021-22 with a fund balance of almost $25.1 million. After applying the City Council Reserve Policy of $5 million, the CIP Fund is estimated to have a healthy fund balance of over $20.1 million. The Equipment Replacement Fund and all Special Revenues Funds are estimated to end FY 2021-22 with stable fund balances. The Equipment Replacement Fund is estimated to have a fund balance of almost $1.9 million, and all other Special Revenue Funds are estimated at approximately $12 million at the end of FY 2021-22. Staff seeks City Council acceptance of the FY 2021-22 Budget consisting of the General Fund, Capital Improvement Program, and Special Revenues, including the Improvement Authorities, and continue the public hearing to June 15, 2021. Any direction from the City Council based on the figures presented in this report will be incorporated in the budget adoption document for the FY 2021-22 Budget that Staff will be presenting at a duly noticed public hearing held by the City Council on June 15, 2021. 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. 28 Fund No.Fund Fund Balance 06/30/2021 Revenues Transfers In Expenditures Transfers Out CIP Transfers Out Other Ending Fund Balance 06/30/2022 101 General Fund Balance 22,475,109 30,075,700 350,000 27,418,400 2,553,000 392,000 22,537,409 101 Restricted Amount (Policy Reserve)(13,107,800) General Fund Unrestricted Balance 9,367,309 30,075,700 350,000 27,418,400 2,553,000 392,000 22,537,409 Restricted by City Council Action 330 CIP 25,263,924 200,000 2,553,000 2,945,000 - 25,071,924 681 Equipment Replacement 2,282,661 330,400 - 707,800 - - 1,905,261 682 Employee Pension Fund - - 307,000 - - - 307,000 Subtotal Restricted by City Council Action 27,546,585 530,400 2,860,000 3,652,800 - - 27,284,185 Restricted by Law or External Agencies 202 Gas Tax 346,705 1,955,500 - 1,630,000 - - 672,205 203 1972 Act 29,085 200 - - - - 29,285 209 El Prado Lighting 37,954 2,500 - 800 - - 39,654 211 1911 Act 1,310,375 628,200 - 725,100 - - 1,213,475 213 Waste Reduction 260,457 131,000 - 340,700 - - 50,757 214 Air Quality Management 150,761 58,900 - 57,000 - - 152,661 215 Proposition C 399,512 705,200 - 995,000 - - 109,712 216 Proposition A 1,364,430 852,700 - 793,000 - - 1,424,130 217 Public Safety Grants 106,420 157,700 - - - 200,000 64,120 220 Measure R 923,041 547,500 - 1,285,000 - - 185,541 221 Measure M 195,908 1,194,200 - 1,312,000 - - 78,108 222 Habitat Restoration 622,698 12,400 - 205,600 - - 429,498 223 Subregion 1 Maintenance 378,633 14,000 30,000 41,600 - - 381,033 224 Measure A 52,284 98,000 - - - 150,000 284 225 Abalone Cove Sewer District 180,099 52,000 157,500 - - 74,599 228 Donor Restricted Contributions 772,953 25,000 - 51,000 - - 746,953 310 CDBG 52,616 365,600 - 150,000 - - 268,216 331 Federal Grants - 999,900 - 999,900 - - - 332 State Grants - 310,000 310,000 - - - 334 Quimby 935,369 25,000 - - - - 960,369 336 Low-Mod Income Housing 254,082 31,900 - - - - 285,982 337 Affordable Housing In Lieu 873,417 17,300 - - - - 890,717 338 Environmental Excise Tax 200,815 10,000 - 210,000 - - 815 340 Bikeways - 110,000 - 110,000 - - - 343 Measure W - 632,000 - 588,400 - - 43,600 Improvement Authority (IA) Funds 285 IA Portuguese Bend 24,568 500 55,000 80,000 - 68 795 IA Abalone Cove 1,092,363 7,500 - 45,000 - - 1,054,863 Subtotal Restricted by Law or External Agencies 10,564,545 8,944,700 85,000 10,087,600 - 350,000 9,156,645 TOTAL GOVERNMENT FUNDS 47,478,439 39,550,800 3,295,000 41,158,800 2,553,000 742,000 58,978,239 CITY OF RANCHO PALOS VERDES FY 2021-22 FUND SUMMARY FY2021-22 Estimated Resources FY2021-22 Estimated Appropriations A-1 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 3102-3103 Property Tax 7,840,208 8,236,989 8,576,363 8,553,800 8,997,000 8,997,000 3107 Property Tax in Lieu of VLF 4,663,495 4,920,186 5,150,914 5,275,900 5,533,300 5,533,300 3108 Redevelopment Property Tax Trust 33,760 50,255 55,594 31,000 30,000 30,000 3110 Property Transfer Tax 490,796 359,706 401,021 450,000 400,000 400,000 13,028,259 13,567,136 14,183,892 14,310,700 14,960,300 14,960,300 3101 Golf Tax 402,732 429,049 394,765 450,000 429,000 429,000 3111 Franchise Taxes 2,128,727 2,149,743 2,146,037 2,150,000 2,150,000 2,150,000 3112 Sales and Use Tax 2,437,988 2,575,202 2,079,675 1,900,000 2,079,700 2,079,700 3113 Sales Tax - PW (PSAF)82,079 85,979 83,667 72,300 83,700 83,700 3114-3117 Utility Users Tax 1,837,689 1,917,107 1,912,370 2,099,700 1,915,000 1,915,000 3120-3121 Transient Occupancy Tax 5,615,045 5,645,497 3,909,799 2,836,000 3,472,500 3,978,400 3210 Business License Tax 887,276 945,792 896,166 715,000 795,000 795,000 13,391,536 13,748,369 11,422,479 10,223,000 10,924,900 11,430,800 3202 Building & Safety Permits 1,209,868 1,152,758 954,408 985,000 990,000 1,095,100 3203 Building & Safety Plan Check 353,155 393,433 335,342 312,000 315,000 348,500 3205 Film Permits 37,125 2,930 20,081 2,000 20,000 22,100 3206 Animal Control Fees 31,835 31,365 26,734 20,000 26,000 28,800 3207 Building & Safety Fees 858 1,367 977 500 1,000 1,100 3208 Building & Safety State Building Standard 660 (521)559 500 1,000 1,100 3209 Building & Safety Geology Fees 132,649 128,272 124,614 112,900 112,900 124,900 3212 Business License Penalty 5,784 12,501 20,505 9,000 12,900 12,900 3213 Parking Permits 330 440 628 300 500 600 3214 Parking Decals 665 988 590 500 300 300 3215 Plan & Zone Permits 341,424 401,764 330,124 305,000 320,000 354,000 3216 Plan - Investigation 3,076 ----- 3217 View Restoration Fees -5,106 5,106 10,200 10,200 11,300 3218 Plan - Misc. Fees 8,572 7,769 7,848 8,000 8,000 8,800 3219 Right of Way Permits 77,689 74,329 106,186 45,600 74,600 82,500 3220 Dumpster Permits 4,018 4,606 3,626 3,000 3,600 4,000 2,207,708 2,217,107 1,937,328 1,814,500 1,896,000 2,096,000 3501 Tow Fees 8,383 6,225 5,976 3,000 5,800 5,800 3502 False Alarm Fines 11,400 18,200 11,250 4,800 4,800 4,800 3503 Misc. Court Fines 91,165 91,460 95,301 92,900 61,800 61,800 4140-3504 Code Enforcement Citations 32,805 12,674 15,338 22,000 22,000 22,000 143,753 128,559 127,865 122,700 94,400 94,400 3602 Rental/Leases 226,798 171,200 158,929 249,100 224,100 224,100 5120-3602 Rent - Other Recreational Facilities --5,173 2,400 2,600 2,600 5130-3602 Rent - Hesse Park --30,436 3,000 30,000 30,000 5140-3602 Rent - Ryan Park 43,647 19,595 9,181 1,900 14,300 14,300 5150-3602 Rent - Ladera Linda 8,799 6,971 2,593 -3,100 3,100 5180-3602 Rent - PVIC 208,603 235,056 141,694 (25,800)97,600 97,600 0000-3602 Other Rental Income ------ 487,847 432,822 348,006 230,600 371,700 371,700 206,893 366,409 358,232 160,000 160,000 160,000 3401 Engineering Fees 198 ----- 5160-3411 Shoreline Parking Lot Fees 245,941 215,341 237,209 350,000 232,800 232,800 5120-3412 Program/Event Fees --5,723 100 4,200 4,200 5131-3412 Program/Event Fees --42,642 8,100 31,000 31,000 5170-3412 Program Fees 5,557 5,972 --6,400 6,400 5190-3412 REACH - Program Fees 10,456 13,305 2,772 -1,000 1,000 5416-3504 Parking Enforcement ----120,000 120,000 3906 Sale of Signs/Services 150 ----- 262,302 234,618 288,346 358,200 395,400 395,400 3301 Federal Grant Income 64,483 ----- 9101-3301 Federal Grant Income ---515,300 -- 3302 Motor Vehicle in Lieu 17,121 1,359 ---- 81,604 1,359 -515,300 -- Total Rentals Interests Charges for Services Total Charges For Services Total Other Taxes Other License & Permit Total Other License & Permit Fines & Forfeitures Total Fines & Forfeitures Rentals Statement Of Revenues - All Funds General Fund Property Taxes Total Property Taxes Other Taxes Intergovernmental Revenue Total Intergovernmental Other Revenue A-2 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 Statement Of Revenues - All Funds 3801 Special Fund Administration 89,700 169,356 149,507 115,000 204,500 204,500 5170-3901 Donations - Special Events 5,400 4,700 100 -1,000 1,000 5180-3901 Donations - PVIC 11,667 8,411 8,423 500 1,000 1,000 5190-3901 Donations - REACH 372 1,244 942 -800 800 3901 Donations - General 1 ----- 3902 CASP Fees 4,253 7,604 5,635 4,500 4,500 4,500 3904 RDA Loan Payment 117,694 139,938 114,494 298,800 154,400 154,400 3908 Successor Agency Adminstration 50,000 --16,000 16,000 16,000 5180-3701 PVIC Gift Shop 136,013 137,551 92,494 7,900 63,400 63,400 1430-3999 Misc. Revenues 1,640 2,600 1,360 1,500 1,500 1,500 3999 Misc. Revenues 173,007 333,240 184,904 120,000 120,000 120,000 589,747 804,644 557,859 564,200 567,100 567,100 30,399,649 31,501,023 29,224,007 28,299,200 29,369,800 30,075,700 Transfer In Public Safety Grant 140,000 130,000 175,000 140,000 200,000 200,000 Transfer in Measure A Maintenance 90,000 90,000 100,000 90,000 150,000 150,000 230,000 220,000 275,000 230,000 350,000 350,000 30,629,649 31,721,023 29,499,007 28,529,200 29,719,800 30,425,700 3304 State Gas Tax - 2103 167,001 142,726 293,467 291,500 376,000 3305 State Gas Tax - 2105 232,717 234,405 217,102 190,200 245,000 3306 State Gas Tax - 2106 144,561 144,587 127,927 116,100 141,000 3307 State Gas Tax - 2107 302,867 294,790 274,133 249,700 311,800 3308 State Gas Tax - 2107.5 6,000 6,000 6,000 6,000 6,000 3309 State Gas Tax - 2031 197,680 837,064 737,134 565,700 831,800 1,050,826 1,659,572 1,655,763 1,419,200 -1,911,600 3999 Misc. Revenues 63,892 48,179 49,279 38,600 38,500 3601 Interest on Investments 918 7,466 21,853 5,400 5,400 1,115,636 1,715,217 1,726,895 1,463,200 -1,955,500 3601 Interest on Investments 333 541 501 200 200 333 541 501 200 -200 3102 Assessments 2,564 2,782 2,882 2,300 2,300 3601 Interest on Investments 345 600 597 200 200 2,909 3,382 3,479 2,500 -2,500 3102 Assessments 659,534 694,107 725,690 660,000 615,200 3999 Misc. Revenues ---210,000 - 3601 Interest on Investments 24,921 37,878 24,346 13,000 13,000 684,455 731,985 750,036 883,000 -628,200 3601 Interest on Investments 5,652 ---- 5,652 ----- Interest Total State Gas Tax Fund 1972 Act Fund All Other Funds State Gas Tax Fund Intergovernmental Revenue Total Intergovernmental Revenue Other Revenue Total Other Revenue Total Operating Revenue Inter-Fund Transfers Total Transfers In Total General Fund 1911 Act Fund Other Taxes Other Revenue Interest Total 1911 Act Fund Beautification Fund Interest Total 1972 Act Fund El Prado Fund Other Taxes Interest Total El Prado Fund Interest Beautification Fund A-3 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 Statement Of Revenues - All Funds 3302 Used Oil Payment 10,920 22,644 22,269 10,000 10,000 10,920 22,644 22,269 10,000 -10,000 3406 AB 939 Fees 219,802 188,142 194,632 132,000 116,400 3601 Interest on Investments 5,281 8,680 7,564 4,600 4,600 236,003 219,466 224,465 146,600 -131,000 3303 AB 2766 Revenue 54,916 55,414 53,834 53,500 57,400 3601 Interest on Investments 949 1,413 1,915 1,500 1,500 55,865 56,827 55,749 55,000 -58,900 3303 Proposition "C" Sales Tax 665,051 714,128 686,691 696,200 699,000 3601 Interest on Investments 8,257 15,733 14,727 6,200 6,200 673,308 729,861 701,418 702,400 -705,200 3303 Proposition "A" Sales Tax 802,855 860,943 827,835 839,400 842,200 3601 Interest on Investments 26,968 38,887 46,964 10,500 10,500 9101 Transfers in from State Grants -300,000 --- 829,823 1,199,830 874,799 849,900 -852,700 Public Safety Fund 3302 CA Brulte (COPS)139,416 148,747 155,948 158,800 156,500 3601 Interest on Investments 1,227 2,116 2,131 1,200 1,200 140,643 150,863 158,079 160,000 -157,700 3303 Measure "R" Sales Tax 498,787 535,750 514,282 535,400 537,500 3601 Interest on Investments 27,599 34,139 18,778 10,000 10,000 526,386 569,889 533,060 545,400 -547,500 3303 Measure "M" Sales Tax 452,015 603,557 578,741 528,200 1,192,400 3601 Interest on Investments 1,205 1,365 1,877 1,800 1,800 453,220 604,922 580,618 530,000 -1,194,200 Charges for Service Interest Total Waste Reduction Fund Air Quality Management Fund Intergovernmental Revenue Interest Waste Reduction Fund Intergovernmental Revenue Total Intergovernmental Intergovernmental Revenue Interest Transfers in Total Proposition "A" Fund Total AQMD Fund Proposition "C" Transportation Fund Intergovernmental Revenue Interest Total Proposition "C" Fund Proposition "A" Transportation Fund Total Measure "R" Fund Measure "M" Transit Sales Tax Fund Intergovernmental Revenue Interest Total Measure "M" Fund Intergovernmental Revenue Interest Total Public Safety Fund Measure "R" Transit Sales Tax Fund Intergovernmental Revenue Interest A-4 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 Statement Of Revenues - All Funds 3302 State Grant Income 433 ---- 3601 Interest on Investments 13,707 19,953 15,225 7,000 12,400 3999 Misc Revenues --3,500 -- 9101 Transfer in from General Fund ----- 14,140 19,953 18,725 7,000 -12,400 3601 Interest on Investments 9,364 14,969 13,442 7,000 14,000 3907 Developer Fees 22,716 ---- 9101 Transfer in from General Fund 41,500 -35,000 10,000 30,000 73,580 14,969 48,442 17,000 -44,000 3303 Measure A 46,848 86,634 93,963 90,800 97,800 3601 Interest on Investments 1,184 1,648 503 200 200 48,032 88,282 94,466 91,000 -98,000 3102 Assessments 56,578 50,672 52,379 50,000 50,000 344-60 Sewer User Fees ----- 3601 Interest on Investments 2,856 6,407 7,676 2,000 2,000 9101 Transfer in from General Fund 208,000 ---- 9330 Transfer in from Infrastructure ----- 267,434 57,079 60,055 52,000 -52,000 3601 Interest on Investments 1,045 ---- 1,045 ----- 3601 Interest on Investments 10,738 16,090 13,660 7,000 25,000 3901 Donations - Restricted 20,500 44,523 --- 2999-3901 Donations - City's Anniversary 15,000 ---- 46,238 60,613 13,660 7,000 -25,000 3301 Grant Income 223,613 178,591 226,364 217,700 365,600 9101 Transfer In General Fund ----- 223,613 178,591 226,364 217,700 -365,600 Habitat Restoration Fund Interest Charges for Service Transfers In Total Subregion 1 Fund Measure A Fund Intergovernmental Revenue Intergovernmental Revenue Interest Other Revenues Transfers In Total Habitat Restoration Fund Subregion 1 Fund Transfers In Total Abalone Cove Sewer Maint. Fund Ginsburg Cultural Arts Building Interest Total Ginsburg Cultural Arts Fund Donor Restricted Donations Fund Interest Total Measure A Fund Abalone Cove Sewer Maintenance Fund Other Taxes Charges for Service Interest Total CDBG Fund Interest Other Revenue Total Donor Restricted Donations Fund Community Development Block Grant Fund Intergovernmental Revenue Transfers In A-5 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 Statement Of Revenues - All Funds 3301 Federal Grant -5,007 --- -5,007 ---- 3601 Interest on Investments 303,781 508,963 471,473 205,200 200,000 3999 Misc Revenues ----- 9101 Transfer in from General Fund 4,526,000 4,301,852 2,410,752 1,557,200 2,553,000 9331 Transfer in from Federal Grants -1,087,318 98,300 -- 4,526,000 5,389,170 2,509,052 1,557,200 -2,553,000 4,829,781 5,903,140 2,980,525 1,762,400 -2,753,000 3301 Federal Grant 1,235,012 141,442 --999,900 3601 Interest on Investments 6,799 ---- 1,241,811 141,442 ---999,900 3302 State Grant -144,320 626,179 213,000 310,000 -144,320 626,179 213,000 -310,000 3907 Quimby Developer Fee 38,223 --23,700 15,000 3601 Interest on Investments 21,048 33,272 23,090 10,000 10,000 59,271 33,272 23,090 33,700 -25,000 3601 Interest on Investments 1,770 2,956 3,237 1,600 1,600 3108 Redevelopment Property Tax Trust 14,712 34,984 28,624 25,000 30,300 16,482 37,940 31,861 26,600 -31,900 3601 Interest on Investments 7,457 15,961 14,846 8,000 4,300 3907 Developer Fees 221,818 ---- 3999 Misc Revenues --2,444 13,000 13,000 229,275 15,961 17,290 21,000 -17,300 3907 EET Developer Fee 156,065 39,020 114,694 7,600 7,600 3601 Interest on Investments 4,655 9,399 7,438 2,400 2,400 160,720 48,419 122,132 10,000 -10,000 3303 TDA Article 3 - SB 821 82,500 --1,000 110,000 82,500 --1,000 -110,000 Capital Improvement Fund Intergovernmental Revenue Total Intergovernmental Revenue Interest Other Revenue Total Federal Grants Fund State Grants Intergovernmental Revenue Total State Grants Fund Quimby Fund Transfers In Total Transfers In Total Capital Improvement Fund Federal Grants Intergovernmental Revenue Interest Property Tax Total City Low-Mod Income Housing Fund Affordable Housing Projects Fund Interest Charges for Service Other Revenues Charges for Service Interest Total Quimby Fund City Low-Mod Income Housing Fund Interest Intergovernmental Revenue Total TDA Article 3 Fund Measure W Total Affordable Housing Projects Fund Environmental Excise Tax (EET) Charges for Service Interest Total Environmental Excise Tax Fund TDA Article 3 - SB 821 Bikeway Fund A-6 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 Statement Of Revenues - All Funds 3301 Local Grant ---690,000 632,000 ---690,000 -632,000 3601 Interest on Investments 28,934 ---- 3302 State Grant Income -200,000 --- 28,934 200,000 ---- 3803 Interfund Charges 300,900 300,900 84,600 95,000 310,400 300,900 300,900 84,600 95,000 -310,400 9214 Transfer in from AQMD ----- 3601 Interest on Investments 29,919 50,259 46,686 20,000 20,000 330,819 351,159 131,286 115,000 -330,400 3802 Transfer In from General Fund ----307,000 3601 Interest on Investments ----- -----307,000 12,377,908 13,277,923 10,003,174 7,912,600 -12,357,100 3601 Interest on Investments 2,484 3,451 2,136 2,600 500 3999 Misc Revenues ----- 9101 Transfer in from General Fund -20,000 55,000 20,000 55,000 2,484 23,451 57,136 22,600 -55,500 3601 Interest on Investments 16,334 29,100 26,260 2,800 7,500 3999 Misc Revenues ----- 9101 Transfer in from General Fund 38,000 25,000 50,000 -- 54,334 54,100 76,260 2,800 -7,500 56,818 77,551 133,396 25,400 -63,000 43,064,375 45,076,497 39,635,577 36,467,200 29,719,800 42,845,800 Interest Total Water Quality Fund Equipment Replacement Fund Charges for Service Total Charges for Service Transfers In Interest Total Measure W Fund Water Quality/Flood Protection Fund Interest Intergovernmental Revenue Charges for Service Interest Total Employee Pension Fund Total Other Funds Revenues Total City Revenues Total Equipment Replacement Fund Employee Pension Fund Improvement Authority Funds Improvement Authority Portuguese Bend Interest Other Revenue Transfers In Total Improvement Authority Portuguese Bend Improvement Authority Abalone Cove Interest Other Revenue Transfers In Total Improvement Authority Abalone Cove Total Improvement Authority Funds A-7 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 Transfers Out 4,813,500 4,346,852 2,550,752 1,587,200 1,851,300 2,945,000 City Council 107,310 96,251 89,739 87,712 110,700 110,700 Legal Services 1,184,798 1,160,193 1,133,169 915,000 955,000 955,000 Public Safety Sheriff 6,108,698 6,407,659 6,683,678 7,091,900 7,150,200 7,150,200 Special Programs 1,028,469 703,365 651,804 247,346 336,700 337,600 Total Public Safety 7,137,167 7,111,024 7,335,482 7,339,246 7,486,900 7,487,800 City Administration City Manager 872,497 802,974 645,232 670,300 705,700 709,000 City Clerk 595,565 449,731 722,453 506,019 521,600 529,800 Community Outreach 74,465 62,246 63,415 69,148 69,800 69,800 Emergency Preparedness 145,801 103,417 24,562 104,580 201,300 202,400 Emergency Operation Center --404,281 413,688 -- Rpvtv 203,701 179,549 182,624 199,365 123,100 123,100 Personnel 373,704 302,545 364,040 364,381 330,200 335,200 Risk Management ------ Information Technology - Data 1,012,124 928,886 975,570 1,066,945 1,058,000 1,059,900 Information Technology - Voice 93,138 96,277 103,792 110,000 126,000 126,000 Total City Administration 3,370,995 2,925,625 3,485,969 3,504,426 3,135,700 3,155,200 Finance Finance 1,349,974 1,502,164 1,634,786 1,487,189 1,545,600 1,571,600 Total Finance 1,349,974 1,502,164 1,634,786 1,487,189 1,545,600 1,571,600 Non-Department Non-Departmental 1,166,153 1,133,907 1,204,532 1,930,204 1,923,100 1,923,100 Total Non-Department 1,166,153 1,133,907 1,204,532 1,930,204 1,923,100 1,923,100 Community Development Administration 547,072 670,903 584,244 484,516 774,400 871,200 Planning 688,279 835,015 774,257 843,969 895,900 902,600 Building & Safety 791,009 826,228 678,640 591,438 883,000 889,500 Code Enforcement 183,129 184,457 222,319 215,055 257,500 271,500 View Restoration 394,012 321,836 384,591 366,811 377,700 380,900 NCCP 16,870 11,445 ---- Geology 115,578 107,253 111,100 140,000 150,000 150,000 Animal Control 115,847 89,842 102,083 109,000 191,000 191,000 Total Community Development 2,851,796 3,046,979 2,857,233 2,750,788 3,529,500 3,656,700 Public Works Public Works Administration 2,157,495 2,155,312 2,092,586 2,023,278 2,540,000 2,725,900 Traffic Safety 485,705 418,941 276,284 351,000 314,500 314,500 Storm Water Quality 310,929 535,921 479,833 496,000 1,000 1,000 Building Maintenance 597,137 453,631 448,644 531,000 306,000 306,000 Trails & Open Space Maintenance 935,465 404,279 421,325 390,377 360,000 360,000 Parks Maintenance -585,191 726,664 852,350 645,500 645,500 Sewer Maintenance 1,554 22,550 42,278 35,000 35,000 35,000 Street Landscape Maintenance 425,073 573,849 147,382 181,000 163,000 188,000 Fuel Modification --1,041,109 620,000 575,000 575,000 Vehicle Maintenance 40,694 41,461 37,905 46,000 46,000 46,000 Total Public Works 4,954,052 5,191,135 5,714,009 5,526,005 4,986,000 5,196,900 Recreation And Parks Recreation Administration 1,042,367 1,026,224 964,029 1,026,436 1,233,000 1,262,700 Other Recreational Facilities 34,650 64,466 10,251 4,609 1,000 1,000 Eastview Park 4,952 7,354 52,683 65,963 76,400 76,400 Open Space Management 104,013 235,721 198,816 155,836 150,100 150,100 Park Rangers --145,826 263,012 374,800 347,000 Fred Hesse Jr. Park 215,126 187,970 180,952 179,166 202,400 202,400 Contract Classes 21,649 41,695 33,717 1,500 25,000 25,000 Robert E. Ryan Park 83,568 92,393 81,169 101,819 111,700 111,700 Ladera Linda Community Center 76,440 86,410 67,534 76,440 57,600 57,600 Abalone Cove Shoreline Park 139,626 135,175 129,636 158,300 200,700 200,700 Special Events And Programs 188,264 194,344 160,550 165,847 231,500 306,500 City Run Sports & Activities 5,659 3,066 3,164 -7,300 7,300 Volunteer Program --5,322 1,000 5,000 5,000 Point Vicente Interpretive Center 471,653 513,920 457,538 403,517 402,900 402,900 Reach 64,370 69,327 20,789 47,570 64,200 64,200 Support Services 40,978 29,084 21,194 24,016 23,400 23,400 Parking Enforcement ----85,700 117,500 Total Recreation & Parks 2,493,315 2,687,149 2,533,169 2,675,031 3,252,700 3,361,400 Total General Fund 29,429,060 29,201,279 28,538,840 27,802,800 28,776,500 30,363,400 Statement of Expenditures - All Funds A-8 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 Statement of Expenditures - All Funds All Other Funds State Gas Tax Traffic Signal Maintenance 10,000 16,770 12,506 -- Street Pavement Maintenance 205,666 256,454 128,232 244,000 260,000 Street Landscape Maintenance 676,964 508,460 634,391 802,000 670,000 Portuguese Bend Rd. Maintenance -48,867 -30,000 - Fuel Modification --24,750 -- Street Landscape Maintenance (CIP)471,592 -285,517 1,899,649 700,000 700,000 Total State Gas Tax 1,364,222 830,551 1,085,396 2,975,649 700,000 1,630,000 El Prado 492 593 -800 800 1911 Act Street Lights Maintenance 566,480 536,861 461,726 480,100 570,100 Capital Improvements 48,105 856,683 509,250 400,290 80,000 155,000 Transfers Out ----- Total 1911 Act 614,585 1,393,544 970,976 880,390 80,000 725,100 Beautification Operating Expenses ----- Street Maintenance ----- Capital Improvements 106,283 383,737 --- Transfers Out ----- Total Beautification 106,283 383,737 --- Waste Reduction Operating Expenses 244,656 212,991 223,785 304,500 340,700 Transfers Out ----- Total Waste Reduction 244,656 212,991 223,785 304,500 340,700 Air Quality Operating Expenses 49,995 50,000 -57,000 57,000 Transfers Out ----- Total Air Quality 49,995 50,000 -57,000 57,000 Prop "C" Transportation Street Maintenance ----- Traffic Maintenance 66,699 --- Street Maintenance (Cip)599,924 572,312 698,806 950,379 995,000 995,000 Transfers Out ----- Total Proposition "C"599,924 639,011 698,806 950,379 995,000 995,000 Prop "A" Transportation Dial-A-Ride 630,334 705,644 777,958 854,491 793,000 Capital Projects 496,443 44,108 458,736 647,530 - Transfers Out ----- Total Proposition "A"1,126,777 749,752 1,236,694 1,502,021 793,000 Public Safety Transfers Out 140,000 130,000 175,000 130,000 200,000 Total Public Safety 140,000 130,000 175,000 130,000 200,000 Measure R Street Landscape Maintenance -28,032 --- Capital Projects -2,036,294 72,167 1,033,803 1,285,000 1,285,000 Transfers Out ----- Total Measure R -2,064,326 72,167 1,033,803 1,285,000 1,285,000 Measure M Repairs & Maintenance 448,464 565,972 525,317 536,000 562,000 Capital Projects ----750,000 750,000 Transfers Out ----- Total Measure M 448,464 565,972 525,317 536,000 750,000 1,312,000 Habitat Restoration 150,633 149,499 172,445 205,200 205,600 Subregion 1 36,228 43,831 42,530 41,600 41,600 Measure A Transfers Out 90,000 90,000 100,000 100,000 150,000 150,000 Total Measure A 90,000 90,000 100,000 100,000 150,000 150,000 Abalone Cove Sewer Maintenance 118,188 49,925 138,010 151,700 157,500 Ginsburg Cultural Arts Building -86,344 1,045 -- A-9 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Projected Year-End FY 2020-21 Budget Workshop FY 2021-22 Preliminary Budget FY 2021-22 Statement of Expenditures - All Funds Donor Restricted Donations Operating Expenses 46,724 31,259 16,770 38,422 51,000 Capital Improvements -137,683 --- Transfers Out ----- Total Donor Restricted Donations 46,724 168,942 16,770 38,422 51,000 Community Development Block Grant 194,556 193,586 211,806 162,999 150,000 Capital Improvement Program Fund Administration ------ Street Improvements 6,911,774 1,862,690 3,738,362 1,037,184 910,000 830,000 Parks, Trails & Open Space Improvements 425,485 215,942 78,909 372,200 215,000 365,000 Sewer Improvements --34,639 6,700 175,000 175,000 Building Improvements 9,000 135,649 36,748 174,200 325,000 500,000 Storm Water Quality Improvements -157,319 460,225 253,000 Landslide Improvements 157,349 37,132 304,026 1,075,000 1,075,000 Transfers Out ----- Total Capital Improvement 7,503,608 2,408,733 4,652,909 1,843,284 2,700,000 2,945,000 Federal Grants Capital Improvements 197,621 -98,300 -999,900 Transfers Out -1,087,318 --- Total Federal Grants 197,621 1,087,318 98,300 -999,900 State Grants Capital Improvements -163,796 --310,000 Transfers Out -300,000 277,373 212,945 - Total State Grants -463,796 277,373 212,945 310,000 QUIMBY Capital Improvements 562,680 142,004 545,813 267,990 - Transfers Out ----- Total Quimby 562,680 142,004 545,813 267,990 - Environmental Excise Tax (EET) Street Landscape Maintenance --286,881 205,000 210,000 Transfers Out ----- Total Environmental Excise Tax (EET)--286,881 205,000 210,000 TDA Article 3 - SB 821 Bikeway Fund Capital Improvements 82,500 ---110,000 110,000 Transfers Out ----- Total TDA Article 3 - SB 821 Bikeway 82,500 ---110,000 110,000 Measure W Operating Expenses ---632,000 588,400 Capital Improvements ----- Transfers Out ----- Total Measure W ---632,000 588,400 Water Quality/Flood Protection Operating Expenses ----- Capital Improvements 1,070,747 811,110 --- Transfers Out ----- Total Water Quality/Flood Protection 1,070,747 811,110 --- Equipment Replacement 203,283 452,376 360,246 789,000 707,800 Employee Benefits ------ Total All Other Funds 14,757,118 12,973,762 11,680,463 13,020,682 6,770,000 13,965,400 Improvement Authority Funds Improvement Authority Portuguese Bend Operating Expenses 49,159 39,630 54,043 62,646 80,000 Capital Improvements ----- Transfers Out ----- Total Improvement Authority Portuguese Bend 49,159 39,630 54,043 62,646 80,000 Improvement Authority Abalone Cove Operating Expenses 80,064 78,331 20,509 32,037 45,000 Capital Improvements ----- Transfers Out ----- Total Improvement Authority Abalone Cove 80,064 78,331 20,509 32,037 45,000 Total Improvement Authority Funds 129,223 117,961 74,552 94,683 -125,000 Total All Funds 44,315,401 42,293,002 40,293,855 40,918,165 35,546,500 44,453,800 A-10 Project Code Project Name Fund Prior FYs FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 TBD 8200 Series Abalone Cove Santitary Sewer System Maintenance 225 (Ab Cove sewer maint.)48,005$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ 2,420,000$ 715,000$ -$ -$ 8300 Series Landslide Improvements 8301 Palos Verdes Drive South Realignment - East End 330 (CIP)121,086$ -$ -$ -$ 1,790,000$ -$ -$ 8302 Palos Verdes Drive South Landslide Area Resurfacing Program 215 (Prop. C)-$ 690,000$ 710,000$ 730,000$ 750,000$ 780,000$ -$ 220 (Meas. R)635,765$ -$ 110,000$ 175,000$ -$ -$ -$ 330 (CIP)-$ 1,075,000$ 65,000$ -$ -$ -$ -$ Grant -$ -$ 795,000$ 4,955,000$ -$ -$ -$ 8400 Series Parks, Open Space & Recreation Facilities 8404 Fence Replacement Program 330 (CIP)326,907$ 215,000$ -$ -$ -$ -$ -$ 330 (CIP)-$ 150,000$ TBD TBD TBD TBD TBD 334 (Quimby park development)489,245$ TBD TBD TBD TBD TBD TBD Funding TBD -$ TBD TBD TBD TBD TBD TBD 8411 Lower Point Vicente Parking Lot Improvements 211 (1911 Act)-$ 80,000$ -$ -$ -$ -$ -$ 8418 Hesse Park Parking Lot & Lighting Improvements 330 (CIP)75,000$ -$ -$ -$ -$ -$ 1,400,000$ 8419 Hesse Park Athletic Field Improvements 330 (CIP)28,300$ -$ -$ -$ -$ -$ -$ 8420 Palos Verdes Nature Preserve Signs Program 330 (CIP)178,405$ -$ -$ -$ -$ -$ 70,000$ 8421 Lower Point Vicente Park Improvements 330 (CIP)50,000$ -$ -$ -$ -$ -$ 1,665,000$ 84LY1 Lower Hesse Park Improvements 330 (CIP)-$ -$ -$ -$ -$ -$ 1,600,000$ 84LY2 Restoration and Installation of "Bubbles" Statue 330 (CIP)-$ -$ -$ -$ -$ -$ 530,000$ 8500 Series Building Improvements 8503 New Civic Center Complex 330 (CIP)168,639$ 225,000$ 340,000$ 450,000$ -$ -$ -$ 85LY1 Restroom Improvements at Point Vicente Interpretive Center 330 (CIP)-$ 175,000$ -$ -$ -$ -$ 210,000$ 85LY2 Replacement of the Civic Center Storm Room 330 (CIP)-$ -$ -$ -$ -$ -$ 100,000$ 85New1 Facilities Asset Management Program 330 (CIP)-$ 100,000$ -$ -$ -$ -$ -$ 8700 Series Sewer & Storm Drain Improvements 8701 Storm Drain Asset Management Program 330 (CIP)-$ 115,000$ 150,000$ 185,000$ -$ 500,000$ -$ 8708 Altamira Canyon Improvements (Erosion)330 (CIP)280,000$ -$ -$ -$ -$ -$ -$ 8711 Bayend Drive Catch Basin Inlets and Storm Drain Lateral 330 (CIP)42,000$ -$ -$ -$ -$ -$ 160,000$ 8405 Ladera Linda Park and Community Center City of Rancho Palos Verdes Public Works Department DRAFT Five Year CIP Budget for Fiscal Years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26 (and TBD) 8304 Portuguese Bend Landslide Remediation Abalone Cove Sanitary Sewer Rehabilitation Program8202 B-1 Project Code Project Name Fund Prior FYs FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 TBD City of Rancho Palos Verdes Public Works Department DRAFT Five Year CIP Budget for Fiscal Years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26 (and TBD) 8713 Upper Point Vicente Stormwater Runoff Control Project (Helipad)330 (CIP)-$ -$ -$ -$ -$ -$ 180,000$ 8714 Crest Road to Crestridge Canyon Stormwater Drainage Improvements 330 (CIP)139,877$ -$ -$ -$ -$ -$ 1,325,000$ 8715 Stormwater Drainage Improvements - Palos Verdes Drive South at Peppertree Drive 330 (CIP)118,000$ -$ -$ 1,035,000$ -$ -$ -$ 8718 Stormwater Drainage Improvements - 6415 Corsini Place 330 (CIP)-$ 60,000$ -$ -$ -$ -$ -$ 87New1 Stormwater Drainage Improvements - Hawthorne Boulevard at Hawkhurst Drive 330 (CIP)118,000$ -$ -$ -$ -$ -$ 1,815,000$ 87New2 Lift Station Improvements at Lower Point Vicente 330 (CIP)-$ -$ -$ 40,000$ 290,000$ -$ -$ 8800 Series Right-of-Way Improvements (continued) 202 (Gas Tax)129,854$ 190,000$ 175,000$ -$ -$ -$ -$ 0 -$ -$ -$ -$ -$ -$ -$ 220 (Meas. R)201,911$ -$ -$ 305,000$ -$ 325,000$ -$ 221 (Meas. M)-$ 150,000$ -$ -$ -$ -$ -$ 330 (CIP)-$ 30,000$ -$ -$ -$ -$ -$ 340 (Bicycle & Ped access)-$ 110,000$ -$ -$ -$ -$ -$ 220 (Meas. R)170,000$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ 1,300,000$ -$ -$ -$ 220 (Meas. R)150,000$ -$ -$ -$ -$ -$ -$ 215 (Prop. C)-$ 305,000$ -$ -$ -$ -$ -$ 221 (Meas. M - Grant)-$ 600,000$ 700,000$ 1,100,000$ 1,600,000$ -$ -$ 8810 Community Development Block Grant Americans with Disabilities Act Infrastructure Improvements 310 (CDBG)116,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ -$ 8811 Arterial Walls and Fences Aesthetic Improvements Program - Citywide 330 (CIP)-$ -$ -$ -$ -$ -$ TBD 202 (Gas Tax)-$ -$ -$ -$ 90,000$ 560,000$ 140,000$ 220 (Meas. R)-$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ 2,165,000$ -$ 202 (Gas Tax)249,964$ -$ -$ -$ 475,000$ 100,000$ -$ 220 (Meas. R)-$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ 2,930,000$ -$ -$ 202 (Gas Tax)-$ -$ -$ -$ -$ -$ -$ 220 (Meas. R)-$ -$ -$ -$ -$ -$ 355,000$ 330 (CIP)-$ -$ -$ -$ -$ -$ 2,475,000$ Sidewalk Repair and Replacement Program8801 8004 Traffic Signs Replacement Program Pavement Management Program - Residential Roadway Rehabilitation - Area 1 8817 Pavement Management Program - Residential Roadway Rehabilitation - Area 5 Pavement Management Program - Residential Roadway Rehabilitation - Area 7 8815 8816 8809 Western Avenue Traffic Congestion Improvements Pavement Management Program - Arterial Roadway Rehabilitation (Crenshaw Boulevard) 8808 B-2 Project Code Project Name Fund Prior FYs FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 TBD City of Rancho Palos Verdes Public Works Department DRAFT Five Year CIP Budget for Fiscal Years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26 (and TBD) 202 (Gas Tax)-$ -$ -$ -$ -$ -$ -$ 220 (Meas. R)-$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ -$ 202 (Gas Tax)-$ -$ -$ -$ -$ 75,000$ 250,000$ 220 (Meas. R)-$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ 2,600,000$ 202 (Gas Tax)-$ -$ -$ -$ -$ -$ 635,000$ 220 (Meas. R)-$ -$ -$ -$ -$ -$ 455,000$ 330 (CIP)-$ -$ -$ -$ -$ -$ 1,555,000$ 215 (Prop. C)60,000$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ 645,000$ 215,000$ -$ -$ -$ -$ 202 (Gas Tax)-$ -$ -$ -$ -$ -$ -$ 220 (Meas. R)-$ -$ -$ -$ -$ -$ -$ 330 (CIP)3,291,704$ -$ -$ -$ -$ -$ -$ 202 (Gas Tax)-$ -$ -$ -$ -$ -$ 700,000$ 220 (Meas. R)-$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ 2,140,000$ 330 (CIP)100,000$ -$ -$ -$ -$ -$ 1,830,000$ 0 -$ -$ -$ -$ -$ -$ -$ 330 (CIP)150,000$ -$ -$ -$ -$ -$ 400,000$ 0 -$ -$ -$ -$ -$ -$ -$ 202 (Gas Tax)-$ -$ -$ -$ 200,000$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ 330,000$ -$ 220 (Meas. R)-$ -$ -$ -$ 70,000$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ 545,000$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ 1,465,000$ 0 -$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ 1,700,000$ 2,940,000$ 202 (Gas Tax)-$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ -$ 202 (Gas Tax)-$ 45,000$ 575,000$ 530,000$ -$ -$ -$ 220 (Meas. R)-$ 530,000$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ 145,000$ 0 -$ -$ -$ -$ -$ -$ -$ 88New1 Pavement Management Program - Triennial Update 202 (Gas Tax)120,000$ 150,000$ -$ -$ 160,000$ -$ -$ 88LY5 Pavement Management Program - Arterial Roadway Rehabilitation (Silver Spur Road - North of Hawthorne Boulevard) Pavement Management Program - Residential Roadway Rehabiitation - Areas 3 & 4 Pavement Management Program - Residential Roadway Rehabilitation - Area 28826 8818 88LY6 Ganado Drive Parkway Area Aesthetic Improvements 8839 Palos Verdes Drive East Widening and Path Improvements near Bronco Drive 8840 Western Avenue Beautification Palos Verdes Drive West Pedestrian Crossing88LY3 Pavement Management Program - Arterial Roadway Rehabilitation (Indian Peak Road) 8836 Palos Verdes Drive South Intersection Improvements8828 8819 Pavement Management Program - Residential Roadway Rehabilitation - Area 8 Pavement Management Program - Residential Roadway Rehabilitation - Area 9 Pavement Management Program - Residential Roadway Rehabilitation - Area 6 8834 88LY2 88LY4 88LY1 Pavement Management Program - Arterial Roadway Rehabilitation (Palos Verdes Drive South) Pavement Management Program - Arterial Roadway Rehabilitation (Palos Verdes Drive East) B-3 Project Code Project Name Fund Prior FYs FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 TBD City of Rancho Palos Verdes Public Works Department DRAFT Five Year CIP Budget for Fiscal Years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26 (and TBD) 330 (CIP)-$ 75,000$ -$ -$ -$ -$ 870,000$ 0 -$ -$ -$ -$ -$ -$ 725,000$ 330 (CIP)-$ 80,000$ -$ 380,000$ -$ 250,000$ -$ 220 (Meas. R)-$ 615,000$ 415,000$ 45,000$ 450,000$ 205,000$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ 5,805,000$ 0 -$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ 255,000$ 0 -$ -$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ -$ 331 (Federal Grants)-$ 999,900$ -$ -$ -$ -$ -$ 220 (Meas. R)-$ 140,000$ -$ -$ -$ -$ -$ 202 (Gas Tax)-$ 315,000$ -$ -$ -$ -$ -$ 330 (CIP)-$ -$ -$ -$ -$ -$ 410,000$ 0 -$ -$ -$ -$ -$ -$ -$ 7,558,662$ 8,014,900$ 6,820,000$ 12,095,000$ 8,955,000$ 7,685,000$ 35,205,000$ 88New7 Pavement Management Program - Arterial Roadway Rehabilitation (Silver Spur Road - South of Hawthorne Boulevard) 88New6 Guardrail Improvements along Palos Verdes Drive East City Entrance Roadway Monument Signs88New5 88New4 Arterial Roadway Beautification Program 88New3 Traffic Calming - Citywide 88New2 Traffic Calming - PV Nature Preserve Parking Solutions Walking Paths Improvement Program88New8 B-4 Project Code Project Name Fund Prior FYs FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 TBD City of Rancho Palos Verdes Public Works Department DRAFT Five Year CIP Budget for Fiscal Years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26 (and TBD) Funding Summary Prior FYs FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 TBD 202 (Gas Tax)499,818$ 700,000$ 750,000$ 530,000$ 925,000$ 735,000$ 1,725,000$ 211 (1911 Act)-$ 80,000$ -$ -$ -$ -$ -$ 215 (Prop. C)60,000$ 995,000$ 710,000$ 730,000$ 750,000$ 780,000$ -$ 220 (Meas. R)1,157,676$ 1,285,000$ 525,000$ 525,000$ 520,000$ 530,000$ 810,000$ 221 (Meas. M)-$ 150,000$ -$ -$ -$ -$ -$ 221 (Meas. M - Grant)-$ 600,000$ 700,000$ 1,100,000$ 1,600,000$ -$ -$ 225 (Ab Cove sewer maint.)48,005$ -$ -$ -$ -$ -$ -$ 310 (CDBG)116,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ -$ 330 (CIP)5,187,918$ 2,945,000$ 3,190,000$ 4,105,000$ 5,010,000$ 5,490,000$ 31,945,000$ 331 (Federal Grants)-$ 999,900$ -$ -$ -$ -$ -$ 334 (Quimby park development)489,245$ -$ -$ -$ -$ -$ -$ 340 (Bicycle & Ped access)-$ 110,000$ -$ -$ -$ -$ -$ Grant -$ -$ 795,000$ 4,955,000$ -$ -$ -$ Funding TBD -$ -$ -$ -$ -$ -$ -$ 7,558,662$ 8,014,900$ 6,820,000$ 12,095,000$ 8,955,000$ 7,685,000$ 34,480,000$ B-5 101 - GENERAL FUND Revenue Type Recurring One-time Total Property Tax 14,960,300 - 14,960,300 Transient Occupancy Tax 3,978,400 - 3,978,400 Sales Tax 2,163,400 - 2,163,400 Franchise taxes 2,150,000 - 2,150,000 Utility Users Tax 1,915,000 - 1,915,000 Permits & Fees 2,083,100 - 2,083,100 Other Taxes & Misc. Revenues 2,825,500 - 2,825,500 TOTAL REVENUES 30,075,700 - 30,075,700 Expenditure by Program Recurring One-time Total City Council 110,700 - 110,700 City Attorney 955,000 - 955,000 Public Safety/Law Enforcement 7,487,800 - 7,487,800 City Administration 3,155,200 - 3,155,200 Finance 1,571,600 1,571,600 Community Development 3,606,700 50,000 3,656,700 Public Works 5,006,900 190,000 5,196,900 Recreation & Parks 3,286,400 75,000 3,361,400 Non-department 1,923,100 - 1,923,100 TOTAL EXPENDITURES 27,103,400 315,000 27,418,400 STRUCTURAL SURPLUS/(DEFICITS)2,972,300 (315,000) 2,657,300 Transfers in 350,000 - 350,000 Transfers out 2,328,800 616,200 2,945,000 SURPLUS/(DEFICITS)993,500 (931,200) 62,300 FY 2021-22 RECURRING VS. ONE-TIME REVENUES AND EXPENDITURES C-1