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CC SR 20210615 03 - 2022 Five Year Model CITY COUNCIL MEETING DATE: 06/15/2021 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to receive the 2022 Financial Model (2022 Model). RECOMMENDED ACTION: (1) Receive and file the 2022 Financial Model (2022 Model). FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Christopher Browning, Senior Administrative Analyst REVIEWED BY: Trang Nguyen, Director of Finance APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. One Page Fund Summary (page A-1) B. Budget Assumptions (page B-1) C. Two Major Funds, General Fund and Capital (page C-1) D. 10-Year Fund Balance (page D-1) BACKGROUND: The 2022 Financial Model (2022 Model) is a financial schedule prepared by the Finance Department (Attachments A through D) as required by City Council Policy No.18. The City’s long-term financial outlook is documented in the 2022 Model, which forecasts economic conditions, including scenarios of future sources of revenues and future spending. The 2022 Model is an additional tool that the City utilizes annually to enga ge in discussions and provide guidance with decision -making related to the City’s future financial health. It also helps determine the direction the City Council needs to take to maintain a structurally balanced budget. The 2022 Model mainly focuses on the General Fund, but it also highlights the Capital Infrastructure Program (CIP) Fund, Special Revenue Funds, and the Rancho Palos Verdes Improvement Authorities. For FY 2021- 22, Staff changed the title of the Five-Year Financial Model to Financial Model to reflect 1 the expansion of the model to 10 years and added a sensitivity analysis at the request of the City Council. Format of the 2022 Model The baseline for the 2022 Model is the FY 2021-22 preliminary budget as presented to the City Council on May 18, 2021. It also has the following financial information: ► Historical revenue and expenditure actuals and ending fund balances for all funds; ► FY 2020-21 year-end estimated revenues, expenditures, and ending fund balances for all funds as of March 31, 2021; ► The economic assumptions used for the model; and ► FY 2022-23 thru FY 2029-30 projected revenues, expenditures, and fund balances for all funds. Process of the 2022 Model The Model is updated at the start of the budget season, in February/March, every fiscal year. Staff updates projections and assumptions based on actual performance as reviewed at mid-year. The Model is then updated to reflect performance at the end of the third quarter, in May, and incorporates any direction provided by the City Council during the budget workshops. The 2022 Model includes the segregation of funds as follows: ► General Fund – The General Fund balance is separated by the 50% reserve policy and the unrestricted balance. ► Funds restricted by the action of the City Council – The balances of these funds, Capital Infrastructure Program Fund, Employees’ Pension Fund, and Equipment Replacement Fund, are restricted by City Council action for a specific purpose. The funds were initiated with transfers from the General Fund and may be transferred back to General Fund or used for other purposes upon the action of the City Council. ► Funds restricted by law or external agencies – The balances of these funds are restricted by law or external agencies, such as the federal government, State of California or Los Angeles County. These monies can only be used for the purpose outlined by the terms and conditions set by legislation and voter ballot measures. The 2022 Model includes several schedules organized as follows: • Attachment A - Fund Summary • Attachment B - Assumptions Applied into the 2022 Model • Attachment C - Summary of the City’s two major funds – General and Capital • Attachment D -10-Year Fund Balance projection by Fund 2 DISCUSSION: Assumptions The 2022 Model is a forecasting tool that provides an estimate of the City’s financial health into the future. As a result, it requires estimates of revenues and expenditures based on data extracted from industry experts, historical trends, economic indicators, and forecasts. Staff takes into account all the data gathered and filters that data through a very conservative lens to create the forecast. Staff prepares detailed anal ysis by account number during the budget process to create year -end estimates for FY 2020-21 and projections for FY 2021-22. The assumptions in Table 1 below are used to forecast the outer years of the 2022 Model beginning in FY 2022-23. Table 1 ~ 2022 Model Revenue and Expenditure Assumptions Below are the details and discussion of the revenue and expenditure assumptions. The revenue assumptions are mostly applied to the General Fund. Special Revenue Funds are allocations that the City receives; therefore, the assumption does not apply to these funds. The expenditure assumptions are applied to all funds. Revenues Property Tax Property tax is the City’s largest and most stable revenue source. Its share of all General Fund revenue is projected to reach 50% during FY 2020-21 due to the lingering decrease in Transient Occupancy Tax (TOT) revenue caused by the pandemic . Property tax is ECONOMIC MODEL INPUT FACTORS 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 REVENUES PROPERTY TAX 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% TRANSIENT OCCUPANCY TAXES 46.3% 11.1% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% SALES TAX 21.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% FRANCHISE TAX 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% UTILITY USERS TAX 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% PERMIT REVENUES 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% INVESTMENT INTEREST 0.8% 1.0% 1.3% 1.5% 1.8% 2.0% 2.0% 2.0% EXPENDITURES CONSUMER PRICE INDEX 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% PERSONNEL EXPENDITURES 8.5% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% HEALTH INSURANCE 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% PERS NORMAL COSTS 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% PERS UNFUNDED LIABILITY 10.1% 5.8% 5.7% 3.1% 2.7% 2.7% 2.7% 2.7% SHERIFF CONTRACT 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 3 usually one of the last revenue sources to reflect any negative economic impacts because this revenue source typically lags by 12-18 months. However, property tax appears to have seen no negative impact due to the pandemic and has performed better than expected as home prices continue to rise. Transient Occupancy Tax TOT was the revenue source that experienced the most significant decrease during the past fiscal year. However, as the state gradually reopens, revenue has begun to recover. Revenue is projected to increase by 40% to just under $4 million. Recovery is expe cted to recover by an additional 46% in FY 2022 -23 and 11% the following year in FY 2023 - 24 and then taper off to the much slower 0.5% annual growth experience d before the pandemic as revenue reaches pre-pandemic levels and growth rates. Sales Tax Sales tax revenue experienced a roughly 18% decrease due to the pandemic during FY 2019-20, falling to $2.1 million from $2.7 million. Revenue is projected to have a subsequent 8% drop to $2 million during FY 2020-21. Sales tax is expected to recover slightly to $2.2 million in FY 2021-22. As reopening across the state continues, the assumption of full revenue recovery is used for FY 2022-23, and a return of a steady 2% annual growth for all years after will be utilized. Permit Revenues Permit fees are based on Staff’s fully burdened hourly rate multiplied by the estimated time to provide the service, as the law requires that permit fees cannot exceed the City’s cost. The City Council approved a new Master Fee Schedule on April 20, 2021. With the adoption of the new schedule, the new fees are projected to produce approximately $240,000 in new revenue. Staff 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. Going forward, the City Council will decide annually on the application of Consumer Price Index (CPI)-based increases to the fees. A 1% annual increase will be assumed for the purposes of this model. Utility Users Tax Utility user tax (UUT) is sensitive to many factors, such as weather conditions, utility consumption, and rate increases, which can be difficult to predict over the long term with accuracy. Staff has projected that UUT will increase by 0.5% annually. Municipal Code Section 3.30.190 requires that the City Manager submit to the City Council an analysis of the revenues derived from the UUT annually for the City Council to decide if the fee is necessary. Based on the operating and capital needs of the City, Staff recommends that the current UUT rate of 3% continue in FY 2021-22. Franchise Tax Franchise tax revenue is generated 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 consumption and the price of natural gas. Staff uses historical data and industry projections for this 4 revenue estimate. Staff is projecting franchise tax to grow slightly by 0.5% annually over the next 10 years. Chart 1 ~ General Fund FY 2021-22 Revenue Distribution, excluding transfers Expenditures Personnel Expenditures Salaries and benefits for City Staff, including vacancies, make up approximately 40% of General Fund operating expenditures. The current Memorandum of Understanding (MOU) with the Rancho Palos Verdes Employees Association expires on June 30, 2021. The City and the employee association are currently participating in negotiations on a new MOU. For the 2022 Model, Staff made assumptions based on the current language of the MOU. This language provides employees with an annual cost-of-living adjustment (COLA) that ranges from 1% to a maximum of 2.5% based on the annual CPI-U at the end of March each fiscal year. A COLA of 2% has been factored into the 2022 Model. Additionally, employees receive an annual merit increase based on performance evaluations. Staff has factored in a 3% merit increase based on historical averages. A combined annual increase of 5% was used to forecast salary and benefits costs through FY 2029-30. Any changes to employee compensation are subject to negotiation between the Rancho Palos Verdes Employees Association and the City. Pension The City’s employee pension plan includes three tiers of benefits based on local pension reform and state pension reform. Pension costs are broken into two distinct categories, Normal Cost and Unfunded Actuarial Liability. Normal Cost 5 The California Public Employees' Retirement System (CalPERS) sets the employer normal cost contribution rates for all participating employers. This category is calculated based on current Staff, salaries, and tier placement. The City’s normal cost is actually projected to decrease slightly each year due to the turnover of Tier 1 employees who are replaced with Tier 2 or Tier 3 employees. The estimated normal cost over the next five years, based on CalPERS’ Actuarial Report, is listed in Table 2. Table 2 ~ CalPERS Normal Cost % Projection Below is the projected CalPERS Normal Cost for the next 10 years used in the 2022 Model. Table 3 ~ CalPERS Normal Cost Projection Unfunded Actuarial Liability In addition to the normal cost contributions, the City is required to make an annual payment toward the unfunded actuarial liability (UAL) for each of the three CalPERS tiers. The UAL is a factor of current and past Staff, salaries, CalPERS target discount rate, and investment performance. The City’s total UAL is calculated by subtracting the market value of its pension assets from its plans accrued liability. Based on the most recent CalPERS Actuarial Valuation Report received in July of 2019, the City’s total unfunded liability is $12.98 million. The actual FY 2020-21 payment amount has been set; however, all future payment amounts are projections of future costs. Fiscal Year Tier 1 Tier 2 Tier 3 FY 20-21 12.361% 8.794% 7.732% FY 21-22 12.20% 8.65% 7.59% FY 22-23 12.2% 8.7% 7.6% FY 23-24 12.2% 8.7% 7.6% FY 24-25 12.2% 8.7% 7.6% FY 25-26 12.2% 8.7% 7.6% 2021-22 2022-23 2023-24 2024-25 2025-26 639,524 652,300 665,300 678,600 692,200 2026-27 2027-28 2028-29 2029-30 706,000 720,200 734,600 749,300 Normal Cost 6 Table 4 ~ CalPERS Unfunded Actuarial Liability Los Angeles County Sheriff’s Contract The Los Angeles County Sheriff’s Department (LASD) contract continues to increase year over year. Staff has elected to use a conservative 4% annual growth rate in contract costs over the next five years, based on historical actuals. Transfers of TOT revenue from Terranea Resort to the CIP Fund will continue to be reduced by the amount of the annual increase in the public safety contract. It should also be noted that in FY 2019 -20, the City began transitioning from contracting the LASD to patrol the Palos Verdes Nature Preserve (Preserve) to hiring four Park Rangers to assume the patrol duty. The contract portion of LASD for the patrol of the Preserve is approximately $600,000 a year. By transitioning to a Park Ranger program, the City saved about $300,000 annually. Chart 2 ~ General Fund FY 21-20 Expenditure Distribution, excluding transfers Tier 1 Tier 2 Tier 3 Total Accrued Liability $44,696,421 $1,892,664 $1,320,076 $47,909,161 Market Value of Assets $32,015,078 $1,724,042 $1,192,048 $34,931,168 Unfunded Accrued Liability $12,681,343 $168,622 $128,028 $12,977,993 Funded Ratio 71.6% 91.1% 90.3% 72.9% 2021-22 2022-23 2023-24 2024-25 2025-26 1,002,749 1,104,000 1,168,000 1,234,000 1,272,000 2026-27 2027-28 2028-29 2029-30 1,306,600 1,341,900 1,378,100 1,415,300 UAL 7 Financial Forecast General Fund The 2022 Model incorporates assumptions for revenues and expenditures based on current data and information, industry experts, and historical data. As shown in Chart 3, the General Fund continues to have a structurally balanced budget, with operating revenues exceeding operating expenditures through FY 2029-30 excluding transfers, resulting in a positive operating fund balance . This is based on the assumptions to be outlined in detail later in this report. Chart 3 ~ General Fund Operating Revenues and Expenditures, Excluding Transfers The City’s operating fund balance is reduced by transfers out to various other funds. The largest of such transfers is the transfer of TOT revenue from Terranea Resort, minus the increase in the public safety contract since the start of FY 2017-18, to the Capital Improvement Program (CIP). Table 5 details the transfer out from the General Fund in the 2022 Model. 8 Table 5 ~ General Fund Transfers Out The General Fund has provided support to Sub-Region 1 and the Portuguese Bend Improvement Authority fund over the past several fiscal years. These two funds have no revenue source other than the interest earned on the balance held within the fund during the fiscal year. With the expansion of the 2022 Model to 10 years, the subsidy support from the General Fund to several Special Revenue Funds would continue to grow if no changes are made. Beginning in FY 2022-23, the Abalone Cove Sewer Fund (Fund 225) and the Abalone Cove Improvement Authority Fund (Fund 795) are projected to require a transfer from the General Fund. Fund 225 requires this growing transfer due to its sole revenue source being limited to property tax revenue received for that region of Rancho Palos Verdes. Even when accounting for reasonable increases in revenue, funds received will be insufficient to support expenses in the long term. The transfer out from the General Fund to the Abalone Cove Sewer is projected to eventually reach $131,000 in FY 2029 -30. Additionally, beginning in FY 2023-24, the Abalone Cove Improvement Authority fund is projected to require a transfer from the General Fund beginning FY 2023 -24. This transfer is expected to grow to $48,000 by FY 2029-30. Despite this fund having a larger balance, 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. It is important to note that the significant decrease of the annual excess reserve of $62,300 in FY 2021-22 is mainly from the increase in TOT transfers based on TOT revenues recovering from the pandemic, approval of one-time additional TOT transfers FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Transfer to CIP 1,557,200$ 2,553,000$ 3,775,478$ 4,096,864$ 3,818,487$ Sub-region 1 10,000 30,000 30,000 30,000 31,000 Abalone Cove Sewer - - 56,000 111,000 115,000 IA Portuguese Bend 20,000 55,000 52,000 84,000 87,000 Pension Fund - 307,000 - - - IA Abalone Cove - - - 18,000 41,000 Total Transfers to Other Funds 30,000 392,000 138,000 243,000 274,000 Total Transfers Out 1,587,200$ 2,945,000$ 3,913,478$ 4,339,864$ 4,092,487$ FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Transfer to CIP 3,527,892$ 3,224,583$ 2,908,047$ 2,577,749$ 2,233,134$ Sub-region 1 32,000 34,000 35,000 36,000 38,000 Abalone Cove Sewer 118,000 122,000 124,000 128,000 131,000 IA Portuguese Bend 90,000 92,000 95,000 98,000 100,000 Pension Fund - - - - - IA Abalone Cove 43,000 44,000 46,000 47,000 48,000 Total Transfers to Other Funds 283,000 292,000 300,000 309,000 317,000 Total Transfers Out 3,810,892$ 3,516,583$ 3,208,047$ 2,886,749$ 2,550,134$ 9 to CIP, and a one-time transfer to the Employee Pension Service Fund. Moreover, an expected large increase in sales tax and TOT is projected during FY 2022-23 when revenue in these two categories is expected to return to pre-pandemic levels. This large bump in revenue is expected to create an annual excess for the next two fiscal years. Table 6 ~ General Fund Annualized Surplus/(Deficit) The General Fund receives an annual transfer in from two separate funds, Public Safety Grant and Measure A Maintenance, projected to be a combined $265,000 on average. As shown in Table 7, once all transfers in and out are included in the 2022 Model, the General Fund will show an annualized deficit when comparing revenues to expenditures beginning in FY 2024-25 as expenditures are projected to outpace revenues in the outer years of the 2022 Model as revenues settle into a more consistent growth pattern. The decrease in the operating fund balance starting FY 2025-26 is caused by several factors, the most impactful being the higher rate of annual growth that expenditures experience compared to revenues, which creates a widening gap in the later years of the 2022 Model. If nothing changes, the City will continue to have a surplus until FY 2028-29 when revenues no longer support expenditures, including transfers. FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Operating Fund Balance 2,083,615$ 2,657,300$ 4,260,147$ 4,524,851$ 4,157,928$ Plus: Transfers In 230,000 350,000 298,000 253,000 253,000 Less: Transfers to CIP (1,557,200) (2,553,000) (3,775,478) (4,096,864) (3,818,487) Less: Transfers to Other Funds (30,000) (392,000) (138,000) (243,000) (274,000) Annual Excess Reserve/(Deficit)726,415$ 62,300$ 644,669$ 437,986$ 318,440$ FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Operating Fund Balance 3,800,689$ 3,428,507$ 3,035,594$ 2,620,454$ 2,181,945$ Plus: Transfers In 253,000 253,000 253,000 253,000 253,000 Less: Transfers to CIP (3,527,892) (3,224,583) (2,908,047) (2,577,749) (2,233,134) Less: Transfers to Other Funds (283,000) (292,000) (300,000) (309,000) (317,000) Annual Excess Reserve/(Deficit)242,798$ 164,924$ 80,547$ (13,295)$ (115,189)$ 10 Chart 4 ~ General Fund Operating Revenues and Expenditures, Including Transfers Chart 4 illustrated that the General Fund revenues would support expenditures, including transfers until FY 2028-29. Table 7 on the next page illustrates the impact on the General Fund balance through FY 2029-30. As shown, the General Fund is projected to operate with excess unrestricted fund balance through FY 2029-30. The unrestricted fund balance does decrease with each fiscal year, ending FY 2029 -30 with roughly $5.5 million. This is because expenditures grow at just over 4% annually compared to revenues which increase at slightly under 2.5%, and a growing need for support for other funds from the General Fund. 11 Table 7 ~ General Fund Balance Inflation Sensitivity Analysis As the country begins to transition back to normal economic activity, concern over the impact and severity of inflation has started to surface. Supply chain disruptions caused by expectations of decreased demand and limits on staffing due to COVID protocols triggered shortages across multiple sectors and is resulting in price increases. Additionally, suppressed demand during the pandemic caused falling prices in several sectors, which, as the demand recovers, have caused prices to spike. These situations are combined with increases in consumer spending as the pandemic restrictions begin to ease, and pent-up demand for activities such as leisure travel begin to be expressed. FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Beginning Fund Balance 21,748,711$ 22,475,126$ 22,537,426$ 23,182,095$ 23,620,081$ Revenues 28,299,200 30,075,700 32,987,158 34,382,707 35,193,267 Expenditures (26,215,585) (27,418,400) (28,727,012) (29,857,857) (31,035,339) Transfers In 230,000 350,000 298,000 253,000 253,000 Transfers Out (1,587,200) (2,945,000) (3,913,478) (4,339,864) (4,092,487) Surplus / (Deficit)726,415 62,300 644,669 437,986 318,440 Ending Fund Balance 22,475,126 22,537,426 23,182,095 23,620,081 23,938,522 50% Reserve Policy (13,107,792) (13,709,200) (14,363,506) (14,928,928) (15,517,669) Unrestricted Fund Balance 9,367,334$ 8,828,226$ 8,818,589$ 8,691,153$ 8,420,852$ FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Beginning Fund Balance 23,938,522$ 24,181,319$ 24,346,244$ 24,426,791$ 24,413,496$ Revenues 36,032,549 36,901,654 37,801,727 38,733,526 39,698,268 Expenditures (32,231,859) (33,473,147) (34,766,133) (36,113,072) (37,516,323) Transfers In 253,000 253,000 253,000 253,000 253,000 Transfers Out (3,810,892) (3,516,583) (3,208,047) (2,886,749) (2,550,134) Surplus / (Deficit)242,798 164,924 80,547 (13,295) (115,189) Ending Fund Balance 24,181,319 24,346,244 24,426,791 24,413,496 24,298,307 50% Reserve Policy (16,115,930) (16,736,573) (17,383,066) (18,056,536) (18,758,161) Unrestricted Fund Balance 8,065,390$ 7,609,670$ 7,043,725$ 6,356,960$ 5,540,146$ 12 It is unknown if the current rise in prices is a sign of true inflation that will continue in to the future, or as the Federal Reserve has stated, a temporary surge in prices caused by a very unusual set of circumstances that will resolve over the year as supply chains return to normal production levels and catch up with demand and consumers express their demand for goods and travel, and exhaust the excess funds they received through several rounds of stimulus payments. To assist in gaining an understanding of the potential impacts a possible rise in inflation could cause, a sensitivity analysis was added to this year’s staff report. The 2022 Model currently assumes an annual CPI adjustment of 2.5% for certain areas of revenues and expenditures. Within this sensitivity analysis, Staff looked at the impact an additional 1% in inflation could have on the General Fund balance if it was applied first only to expenditures and then also to revenues. Chart 5 below shows the potential impact that an additional 1% increase in price growth could have on the City’s General Fund expenditures. Chart 5 ~ General Fund Expenditures 2.5% to 3.5% Inflation Analysis The initial increase during FY 2021-22 is minor, with expenditures increasing by roughly $200k from $30.4 million to $30.6 million. However, as the effects of the 3.5% total inflation compound over time in concert with the assumed growth in expenditures , the impact grows exponentially. By FY 2029-30, the increase in inflation could result in an additional $3.4 million in expenditures. This sensitivity analysis does assume that the increase in inflation would continue throughout the scope of the 2022 Model. 13 This rise in expenditure costs would have a significant impact on the General Fund balance. A consistent increase of 1% in expenditure cost would decrease the fund balance from a projected $24.3 million in FY 2029-30 (yellow dashed line) to $9.21 million (blue bar) as illustrated in Chart 6, a decrease of over $15 million. Chart 6 ~ 1% Increase in Expenditures Impact to the General Fund Balance The possibility that expenditures would solely be impacted by an increase in inflation without increasing revenues is unlikely. In Chart 7 below, the potential impact of an additional 1% increase in the City’s General Fund revenues is displayed. Chart 7 ~ General Fund Revenues 2.5% to 3.5% Inflation Analysis 14 As with expenditures, the initial increase during FY 2021-22 is minor, increasing by roughly $300,000 from $30.4 million to $30.7 million. This growth in revenues after a 3.5% total inflation compounded over time along with the projected growth would reach $43.5 million by FY 2029-30. This is an increase of $3.5 million compared to the baseline projection from the 2022 Model of $40 million. Chart 8 below considers the impact a 1% increase in inflation from the current assumption of 2.5% to 3.5% would have on both revenues and expenditures. Chart 8 ~ 1% Increase in Revenues and Expenditures Impact to the General Fund Balance When the impact of a consistent increase of 1% in inflation to both expenditures and revenues is taken into consideration, the impact on the General Fund balance is overall positive. The fund balance is estimated to increase from a projected $24.3 million in FY 2029-30 (yellow dashed line) to $25.6 million (blue bar) as illustrated in Chart 6. The reason for this increase in fund balance even though expenditures grow at an overall faster rate than revenue is that the 1% increase across the board to both of the categories extends the length of time that revenues exceed expenditures on an annual basis. If this analysis were to be extended by several additional years, expenditures would begin to exceed revenues and the fund balance would slowly decrease. In summary, it is still unknown if inflation is here to stay and if it is likely for the long term, how severe the impact will be. It is likely that if elevated inflation does occur, it will impact both expenditures and revenues, negating some of its impacts. More time is needed to know the potential long-term impacts to the General Fund in future years. Capital Infrastructure Program (CIP) Fund As illustrated in Chart 9 on the next page, the 2022 Model shows a CIP Fund balance of $25.1 million in FY 2020-21 decreasing to $22.7 million at the end of FY 2029-30. This reduction in fund balance is the result of the continually decreasing transfer in from the 15 General Fund. Outside of the roughly $200,000 in average annual projected interest earnings received, the transfer in of a significant portion of TOT revenue from the General Fund is the primary revenue source for the CIP fund. Chart 9 ~ CIP 5-Year Projection The transfer from the General Fund to the CIP Fund is calculated by taking the total TOT revenue received from Terranea Resort minus the cumulative increase in the annual LA County Sheriff’s contract since FY 2017-18. For the purposes of the 2022 Model, expenditures have been reduced to match the transfer in from the General Fund beginning in FY 2026-27 since the last year of the five-year Capital Improvement Plan is FY 2025-26, and the future costs by year have not yet been allocated. The Impact of the Sheriff’s Contract on Transfer to the CIP Fund This decrease in projected TOT revenue, combined with the continued increase in the cost of the LASD contract, has a significant impact on the General Fund transfer to CIP. The Sheriff’s contract is scheduled to reach $7.1 million in FY 2021-22 and increase annually by 4%. In contrast, TOT revenue from Terranea is projected to reach $3.8 million during FY 2021-22 and then begin to recover to near pre-pandemic levels of $5.6 million with an increase of 46% during FY 2022-23. In FY 2023-24, revenue is expected to return to normal levels with an increase of 11% to $6.2 million , and then revenue growth is expected to level off to the pre-pandemic rate of 0.5% annually in subsequent fiscal years, reaching $6.2 million in FY 2025-26. This steadily decreasing year-over-year TOT revenue growth compared to the consistent increase in public safety costs results in a decrease in the transfer to CIP that accelerates with each passing year. 16 Chart 10 ~ Annual Increase in Terranea TOT Revenue & Sheriff Contract Table 8 ~ Annual General Fund Transfer to CIP Special Revenue Funds Special Revenues are used to account for taxes and other revenues set aside for specific or restricted purposes. The City’s major special revenue funds are gas tax, Proposition A, Proposition C, Measure R, Measure M, and Measure W. Most of the funding for special revenues is designated for street maintenance, public rights -of-way maintenance, and transit-related expenses. Staff ensures that the special revenue funds are utilized for any qualified projects before CIP reserves are appropriated. Measure W Los Angeles County voters successfully passed measure W on November 6, 2018, creating the Safe, Clean Water (SCW) Program, which provides local, dedicated funding for stormwater and urban runoff to increase our local water supply, improve water quality, FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 1,557,200$ 2,553,000$ 3,775,478$ 4,096,864$ 3,818,487$ FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 3,527,892$ 3,224,583$ 2,908,047$ 2,577,749$ 2,233,134$ GF Transfer 17 and protect public health. It does not have a sunset date and may only be ended by a successful ballot measure or if proven invalid or unconstitutional. The program’s funding is generated by a Los Angeles County Special Parcel Tax of 2.5 cents per square foot of impermeable space. The parcel tax is expected to generate up to $285 million in Safe, Clean Water (SCW) program funds and help the county meet its obligations under the Federal Clean Water Act. The local return funds are distributed to municipalities proportional to the tax revenues collected within their boundaries. The county estimates the City of Rancho Palos Verdes allocation to be $690,000 annually. The table below lists the special revenue funds and the fiscal year that they will run into a negative fund balance if the spending trend continues with no changes to revenue in the future. Table 9 ~ Special Revenue Funds Projected Negative Fund Balance ADDITIONAL INFORMATION: The following information is not related to the sensitivity analysis discussed above, but is being provided as information that may impact the Model in subsequent year. Taxes and Fee Reduction Since 2014, the City Council has taken several actions to reduce taxes to the community. Some of the major tax reductions and the estimated impact are listed in Table 10 below. From August 2014 to June 30, 2022, the total estimated tax reduction is almost $13.8 million. The sunset of the Storm Drain User Fees, an over $7 million reduction in revenue, impacts the CIP Fund for all sewer and storm drain improvement projects. The services that were supported by the revenue collection from the UUT on telecommunication services, the 1972 Act, and business license tax (BLT) are now being supported by other general tax revenues and fees. The suspension of the UUT on telecommunication services, the tax assessment for the 1972 Act, the CPI adjustment for BLT, and the elimination of BLT on Home Occupancy, totaled an almost $6.8 million reduction in revenue. FY 22-23 FY 24-25 FY 27-28 Fund 213 - Waste Reduction ($134,746) Fund 222 - Habitat Restoration ($137,341) Fund 338 - Developmental Impact (EET)($205,269) Fund 681 - Equipment Replacement Fund ($354,126) 18 Table 10 ~ Taxes and Fee Reduction Ladera Linda Community Center and Park Project On April 6, 2021, the City Council upheld the Planning Commission’s approval of the Ladera Linda Community Center and Park Project. The project is estimated to cost roughly $15.7 million. On May 18, 2021, the City Council approved the financing option recommended by the Finance Advisory Committee (FAC) outlined below. a. 50% of the City’s American Rescue Plan Act allocation; b. Available funds in the Quimby Fund; c. A 50/50 split between financing with iBank and the Capital Infrastructure Program Fund Reserve; and, d. Create a framework to replenish CIP Fund with interest earnings, additional transfers from the General Fund when there is a surplus, and private funding such as donations and capital fundraisers. FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Utility User Tax - Telecommunication (700,000)(714,000)(728,300)(742,900)(757,800) Storm Drain User Fees 0 0 (1,387,000)(1,404,000)(1,406,500) 1972 Act Landscaping and Lighting District 0 0 0 (260,500)(261,000) Business License Tax - CPI 0 0 (17,178)(27,520)(36,886) TOTAL REDUCTION PER FISCAL YEAR (700,000) (714,000) (2,132,478) (2,434,920) (2,462,186) FY 2019-20 FY 2020-21 FY 2021-22 Total Reduction Utility User Tax - Telecommunication (773,000)(788,500)(804,300)(5,204,500) Storm Drain User Fees (1,409,100)(1,412,000)(1,414,200)(7,018,600) 1972 Act Landscaping and Lighting District (261,500)(262,000)(262,400)(1,045,000) Business License Tax - CPI (115,992)(309,300)(204,600)(506,876) TOTAL REDUCTION PER FISCAL YEAR (2,559,592) (2,771,800) (2,685,500) (13,774,976) 19 Items C and D of the financing plan will impact the overall balance of the CIP Fund . However, the actual impact is still to be determined . Staff will incorporate the impact of Ladera Linda Community Center in next year’s model once it is known. Water Quality/Flood Protection Fund The Water Quality/Flood Protection Fund was closed on October 1, 2019 when the City Council accepted the final project and reimbursement received from Caltrans. All future projects will be funded by the Capital Infrastructure Projects Fund. The City Council approved the following projects for FY 2021-22: • Storm Water Drainage Improvements - 6415 Corsini Place $60,000 • Storm Drain Asset Management Program $115,000 Additional information is available in the Five-Year Capital Improvement Program. Employee’s Pension Service Fund To address the rising annual pension costs, the City Council adopted a new set of pension guidelines. As part of these pension guidelines , a new Employee Pension Service Fund (Fund 682) was established to aid in the handling of the rising annual UAL payment. The City can set aside funding in to Fund 682 as an Internal Service Fund, to assist the General Fund in making payments in excess of $900,000. The City Council authorized a one-time transfer of $307,000 in FY 2021-22 for the initial funding of this program. Compliance with Legislative Review Requirements Review of Utility Users Tax Municipal Code Section 3.30.190 requires that the City Manager submit to the City Council an analysis of the revenues derived from the 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 necessary. The tax rate cannot be increased without a majority vote of the residents of the City during a municipal election. The current estimate of FY 2021-22 UUT revenue is approximately $1.9 million or approximately 6% of total General Fund revenue. Review of Golf Tax Municipal Code Section 3.40.140 requires a legislative review of golf tax every four years, to be completed prior to the adoption of the budget prepared for the corresponding next fiscal year. The golf tax ordinance directs the City Council to determine, based on the needs of the City, if any modification to the tax rate is necessary or if the tax should be repealed. The current estimate of FY 2021-22 golf tax revenue is $0.3 million. 20 CONCLUSION: In conclusion, the 2022 Model is a decision-making tool for the City. It provides a long- term financial outlook to be utilized by the City Council and Staff to make informed decisions for both the short-term and long-term. The 2022 Model shows that all the budget adjustments made in the General Fund over the last couple years have positioned the City to have a structurally balanced budget, where operating revenues exceed operating expenditures through FY 2029-30. However, based on current estimates, there will be a great need for the General Fund to support several other funds. Future operating expenses for these funds should be monitored and revised annually for prudent spending and to minimize the required subsidy from the General Fund. Despite the need for the General Fund to support several funds, most of the restricted funds will continue to support the annual operating expenses over the next ten fiscal years. 21 Fund BalanceFund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund BalanceFund6/30/2020RevenuesTransfers In ExpendituresTransfers Out 6/30/20216/30/20226/30/20236/30/20246/30/20256/30/20266/30/20276/30/20286/30/20296/30/2030General Fund Balance21,748,712 28,299,200 230,000 26,215,585 1,587,200 22,475,127 22,537,427 23,182,096 23,620,082 23,938,523 24,181,320 24,346,245 24,426,792 24,413,497 24,298,308 EXPENDITURES (EXCLUDING T/O)25,988,088 26,215,585 27,418,400 28,727,012 29,857,857 31,035,339 32,231,859 33,473,147 34,766,133 36,113,072 37,516,323 Restricted Amount (Policy Reserve) (12,994,044) (13,107,792) (13,709,200) (14,363,506) (14,928,928) (15,517,669) (16,115,930) (16,736,573) (17,383,066) (18,056,536) (18,758,161) GENERAL FUND Unrestricted Balance8,754,668 28,299,200 230,000 26,215,585 1,587,200 9,367,335 8,828,227 8,818,590 8,691,154 8,420,853 8,065,390 7,609,671 7,043,725 6,356,960 5,540,147 Restricted by Council ActionCIP25,344,808 205,200 1,557,200 3,792,312 ‐ 23,314,896 23,122,896 22,826,074 23,484,853 22,538,599 22,747,749 22,960,559 23,177,625 23,399,033 23,624,868 EQUIPMENT REPLACEMENT2,956,661 115,000 ‐ 788,997 ‐ 2,282,664 1,905,264 1,528,014 1,150,966 774,171 397,686 21,567 (354,126) (729,385) (1,104,202) EMPLOYEE PENSION PLAN‐ ‐ ‐ ‐ ‐ ‐ 307,000 307,000 307,000 307,000 307,000 307,000 307,000 307,000 307,000 Subtotal28,301,469 320,200 1,557,200 4,581,309 ‐ 25,597,560 25,335,160 24,661,088 24,942,819 23,619,771 23,452,436 23,289,127 23,130,499 22,976,648 22,827,667 Restricted by Law or External AgenciesGAS TAX1,526,234 1,463,200 ‐ 2,975,649 ‐ 13,785 339,285 1,336,926 2,305,883 3,245,311 4,154,335 5,032,056 5,877,548 6,689,843 7,467,945 1972 ACT28,885 200 ‐ ‐ ‐ 29,085 29,285 29,486 29,690 29,896 30,105 30,318 30,535 30,756 30,982 EL PRADO LIGHTING36,254 2,500 ‐ 800 ‐ 37,954 39,654 41,424 43,266 45,185 47,184 49,268 51,440 53,704 56,064 CDBG26,016 217,700 ‐ 162,999 ‐ 80,717 296,317 661,917 1,027,517 1,393,117 1,758,717 2,124,317 2,489,917 2,855,517 3,221,117 1911 ACT1,446,775 883,000 ‐ 880,390 ‐ 1,449,385 1,431,485 1,578,558 1,736,178 1,904,950 2,085,505 2,278,503 2,484,637 2,704,599 2,939,111 WASTE REDUCTION454,757 146,600 ‐ 304,500 ‐ 296,857 87,157 (134,746) (367,751) (612,241) (868,450) (1,136,759) (1,417,591) (1,711,397) (2,018,646) AIR QUALITY MANAGEMENT152,761 55,000 ‐ 57,000 ‐ 150,761 152,661 152,862 151,317 147,977 142,792 135,709 126,676 115,634 102,522 PROPOSITION C579,712 702,400 ‐ 950,379 ‐ 331,733 41,933 47,179 52,488 57,876 63,360 68,957 74,686 80,550 86,551 PROPOSITION A2,017,430 849,900 ‐ 1,502,021 ‐ 1,365,309 1,425,009 1,460,998 1,472,589 1,459,074 1,419,726 1,353,794 1,260,507 1,139,041 988,548 PUBLIC SAFETY GRANTS76,420 160,000 ‐ ‐ 130,000 106,420 64,120 21,829 24,550 27,286 30,041 32,818 35,621 38,449 41,304 MEASURE R1,264,041 545,400 ‐ 1,033,803 ‐ 775,638 38,138 (64,287) (166,611) 381,192 929,149 1,477,290 2,025,643 2,574,213 3,123,005 MEASURE M99,008 530,000 ‐ 536,000 ‐ 93,008 (24,792) 590,562 1,188,567 1,768,709 2,330,456 2,873,259 3,396,555 3,899,759 4,382,266 HABITAT RESTORATION815,498 7,000 ‐ 184,900 ‐ 637,598 464,698 286,332 102,365 (87,341) (282,931) (484,550) (692,350) (906,518) (1,127,249) SUBREGION 1 MAINTENANCE771,233 7,000 10,000 41,600 ‐ 746,633 749,033 750,290 750,403 750,369 750,189 750,860 751,382 751,717 752,828 MEASURE A61,284 91,000 ‐ ‐ 100,000 52,284 284 285 289 295 304 317 334 356 381 ABALONE COVE SEWER DISTRICT258,999 52,000 ‐ 151,700 ‐ 159,299 53,799 1,066 305 439 418 1,168 607 645 190 DONOR RESTRICTED CONTRIBUTIONS 781,953 7,000 ‐ 38,422 ‐ 750,531 724,531 697,189 668,522 638,550 607,293 574,771 541,008 505,960 469,584 FEDERAL GRANTS‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ STATE GRANTS‐ 213,000 ‐ 212,945 ‐ 55 55 55 55 55 55 55 55 55 55 QUIMBY1,178,369 33,700 ‐ 267,990 ‐ 944,079 969,079 994,544 1,020,510 1,047,014 1,074,093 1,101,787 1,130,138 1,159,161 1,188,872 LOW‐MOD INCOME HOUSING222,221 26,600 ‐ ‐ ‐ 248,821 280,721 313,845 348,246 383,977 421,097 459,664 499,740 541,384 584,658 AFFORDABLE HOUSING IN LIEU856,127 21,000 ‐ ‐ ‐ 877,127 894,427 911,759 929,135 946,565 964,062 981,637 999,304 1,017,064 1,034,920 ENVIRONMENTAL EXCISE TAX346,815 10,000 ‐ 205,000 ‐ 151,815 (48,185) (254,269) (466,616) (685,407) (910,833) (1,143,086) (1,382,367) (1,628,887) (1,882,867) BIKEWAYS‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ MEASURE W‐ ‐ ‐ ‐ ‐ 476,463 578,118 662,123 727,947 775,047 802,859 810,806 798,292 764,702 709,404 IMPROV AUTH ‐ PORTUGUESE BEND84,068 500 20,000 49,500 ‐ 55,068 30,568 672 309 406 888 678 696 860 83 IMPROV AUTH ‐ ABALONE COVE1,128,363 8,000 ‐ 37,000 ‐ 1,099,363 1,061,863 1,023,069 1,000,961 1,000,515 1,000,710 1,000,523 1,000,931 1,000,889 1,000,354 GRAND TOTAL64,263,404 34,652,100 1,817,200 40,389,492 1,817,200 59,002,475 57,551,830 58,952,850 61,143,015 62,177,110 64,184,881 66,009,532 67,641,235 69,068,200 70,277,958 FY20‐21 Estimated Resources FY20‐21 Estimated AppropriationsCITY OF RANCHO PALOS VERDES2022 FIVE‐YEAR FINANCIAL MODELEXHIBIT AA-1 ECONOMIC MODEL INPUT FACTORS 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 REVENUES PROPERTY TAX 4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0% TRANSIENT OCCUPANCY TAXES 46.3%11.1%0.5%0.5%0.5%0.5%0.5%0.5% SALES TAX 21.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0% FRANCHISE TAX 0.5%0.5%0.5%0.5%0.5%0.5%0.5%0.5% UTILITY USERS TAX 0.5%0.5%0.5%0.5%0.5%0.5%0.5%0.5% PERMIT REVENUES 1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0% INVESTMENT INTEREST 0.8%1.0%1.3%1.5%1.8%2.0%2.0%2.0% EXPENDITURES CONSUMER PRICE INDEX 2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5% PERSONNEL EXPENDITURES 8.5%5.0%5.0%5.0%5.0%5.0%5.0%5.0% HEALTH INSURANCE 2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0% PERS NORMAL COSTS 2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0% PERS UNFUNDED LIABILITY 10.1%5.8%5.7%3.1%2.7%2.7%2.7%2.7% SHERIFF CONTRACT 4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0% B-1 CITY OF RANCHO PALOS VERDES, CA ‐ WORK‐IN‐PROGRESSINDEXFORECAST SUMMARY< SELECT FUND2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030FREVENUES (BY ACCOUNT TYPE)01‐PROPERTY TAX‐SECURED & OTHER 8,631,957 8,584,800 9,027,000 9,388,080 9,763,603 10,154,147 10,560,313 10,982,726 11,422,035 11,878,916 12,354,073 02‐PROPERTY TAX‐TRANSFER TAX401,021 450,000 400,000 416,000 432,640 449,946 467,943 486,661 506,128 526,373 547,428 03‐PROPERTY TAX‐IN LIEU OF VLF5,150,914 5,275,900 5,533,300 5,706,413 5,934,670 6,172,057 6,418,939 6,675,697 6,942,724 7,220,433 7,509,251 04‐SALES TAX2,163,342 1,972,300 2,163,400 2,617,972 2,670,331 2,723,738 2,778,213 2,833,777 2,890,452 2,948,262 3,007,227 05‐TRANSIENT OCCUPANCY TAX3,909,799 2,836,000 3,978,400 5,808,695 6,453,460 6,485,728 6,518,156 6,550,747 6,583,501 6,616,418 6,649,500 06‐UTILITY USERS TAX1,912,370 2,099,700 1,915,000 1,924,575 1,934,198 1,943,869 1,953,588 1,963,356 1,973,173 1,983,039 1,992,954 07‐BUSINESS LICENSE TAX916,672 724,000 807,900 807,900 807,900 807,900 807,900 807,900 807,900 807,900 807,900 08‐FRANCHISE TAX2,146,037 2,150,000 2,150,000 2,160,750 2,171,554 2,182,412 2,193,324 2,204,290 2,215,312 2,226,388 2,237,520 09‐OTHER TAXES394,765 450,000 429,000 440,154 451,598 463,340 475,386 487,746 500,428 513,439 526,788 SUBTOTAL‐LOCAL TAXES25,626,877 24,542,700 26,404,000 29,270,539 30,619,954 31,383,135 32,173,763 32,992,900 33,841,653 34,721,168 35,632,641 11‐INTERGOVT‐FEDERAL‐ 515,300 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 12‐GAS TAX‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 12‐INTERGOVT‐STATE‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 13‐INTERGOVT‐LOCAL‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ SUBTOTAL‐INTERGOVT REVENUE‐ 515,300 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10‐LICENSES & PERMITS1,916,822 1,805,500 2,083,100 2,103,931 2,124,970 2,146,220 2,167,682 2,189,359 2,211,253 2,233,365 2,255,699 14‐CHARGES FOR SERVICES‐PW‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 15‐CHARGES FOR SERVICES‐RECREATION288,345 358,200 275,400 282,560 289,907 297,445 305,178 313,113 321,254 329,606 338,176 16‐FINES & FORFEITURES127,865 122,700 214,400 219,974 225,694 231,562 237,582 243,760 250,097 256,600 263,271 17‐INTEREST EARNINGS358,232 160,000 160,000 161,200 162,812 164,847 167,320 170,248 173,653 177,126 180,668 18‐LEASE & RENTAL INCOME 348,005 230,600 371,700 381,364 391,280 401,453 411,891 422,600 433,587 444,861 456,427 19‐DONATIONS & DEVL FEES 9,465 16,500 18,800 19,289 19,790 20,305 20,833 21,374 21,930 22,500 23,085 20‐CHARGES FOR SERVICES 149,507 115,000 204,500 204,500 204,500 204,500 204,500 204,500 204,500 204,500 204,500 21‐MISCELLANEOUS REVENUES 398,888 432,700 343,800 343,800 343,800 343,800 343,800 343,800 343,800 343,800 343,800 23‐OTHER SOURCES‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL REVENUES29,224,005 28,299,200 30,075,700 32,987,158 34,382,707 35,193,267 36,032,549 36,901,654 37,801,727 38,733,526 39,698,268 % ANNUAL CHANGE‐7.8%‐3.2% 6.3% 9.7% 4.2% 2.4% 2.4% 2.4% 2.4% 2.5% 2.5%EXPENDITURES (BY ACCOUNT TYPE)01‐SALARY & WAGES 7,140,907 7,382,363 8,601,400 9,332,519 9,799,145 10,289,102 10,803,557 11,343,735 11,910,922 12,506,468 13,131,791 02‐HEALTH INSURANCE 724,285 657,707 900,600 909,606 918,702 927,889 937,168 946,540 956,005 965,565 975,221 03‐FICA/MEDICARE116,170 112,411 185,300 201,051 211,103 221,658 232,741 244,378 256,597 269,427 282,898 04‐PERS600,632 621,796 667,100 644,165 657,048 670,189 683,593 697,265 711,210 725,434 739,943 05‐DEFERRED COMP CITY MATCH169,709 159,703 252,500 273,963 287,661 302,044 317,146 333,003 349,653 367,136 385,493 06‐H.S.A.168,800 157,787 153,700 157,543 161,481 165,518 169,656 173,897 178,245 182,701 187,269 07‐CALPERS UNFUNDED LIABILITIES697,746 857,860 1,058,900 1,096,750 1,160,329 1,225,896 1,263,899 1,298,024 1,333,071 1,369,064 1,406,028 08‐WORKERS' COMP‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 09‐OTHER BENEFITS 170,437 149,751 166,100 180,219 189,229 198,691 208,625 219,057 230,010 241,510 253,586 SUBTOTAL‐PERSONNEL COSTS 9,788,685 10,099,378 11,985,600 12,795,814 13,384,699 14,000,987 14,616,386 15,255,899 15,925,713 16,627,305 17,362,229 10‐SHERIFF6,683,678 7,091,900 7,150,200 7,436,208 7,733,656 8,043,003 8,364,723 8,699,312 9,047,284 9,409,175 9,785,542 11‐PROF/TECH SERVICES‐OTHER4,330,510 3,706,477 3,388,900 3,490,567 3,595,284 3,703,143 3,814,237 3,928,664 4,046,524 4,167,920 4,292,957 12‐UTILITY SERVICES511,138 644,812 594,200 612,026 630,387 649,298 668,777 688,841 709,506 730,791 752,715 13‐MAINTENANCE SERVICES2,536,748 2,305,177 1,852,900 1,908,487 1,965,742 2,024,714 2,085,455 2,148,019 2,212,460 2,278,833 2,347,198 14‐OTHER SERVICES379,040 471,820 557,200 573,916 591,133 608,867 627,134 645,948 665,326 685,286 705,844 15‐INSURANCE760,758 794,600 735,400 757,462 780,186 803,591 827,699 852,530 878,106 904,449 931,583 16‐OPERATING SUPPLIES / MINOR EQUIPMENT579,671 617,665 476,000 490,280 504,988 520,138 535,742 551,814 568,369 585,420 602,983 17‐CAPITAL PROJECTS17,110 25,000 25,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 18‐CAPITAL‐EQUIPMENT/VEHICLES26,622 41,746 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 24‐GRANTS TO OTHER ENTITIES‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 25‐INTERFUND CHARGES 88,450 93,600 308,400 317,652 327,182 336,997 347,107 357,520 368,246 379,293 390,672 31‐OTHER USES 285,681 323,409 343,600 343,600 343,600 343,600 343,600 343,600 343,600 343,600 343,600 TOTAL EXPENDITURES, BY ACCOUNT GROUP 25,988,088 26,215,585 27,418,400 28,727,012 29,857,857 31,035,339 32,231,859 33,473,147 34,766,133 36,113,072 37,516,323 % ANNUAL CHANGE 4.6% 0.9% 4.6% 4.8% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9%C-1 CITY OF RANCHO PALOS VERDES, CA ‐ WORK‐IN‐PROGRESSINDEXFORECAST SUMMARY< SELECT FUND2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030FEXPENDITURES (BY DEPARTMENT)01‐CITY ADMINISTRATION 4,304,596 4,093,449 4,220,900 4,422,525 4,586,026 4,756,073 4,931,644 5,114,071 5,303,868 5,501,355 5,706,863 02‐PUBLIC SAFETY7,335,482 7,339,246 7,487,800 7,787,566 8,096,870 8,418,507 8,752,967 9,100,765 9,462,437 9,838,538 10,229,644 03‐FINANCE1,853,678 2,203,499 2,374,600 2,498,015 2,614,803 2,736,255 2,838,732 2,941,457 3,048,455 3,159,919 3,276,050 04‐PUBLIC WORKS6,264,116 6,219,694 5,543,900 5,806,681 6,017,717 6,237,302 6,464,030 6,699,705 6,945,016 7,200,383 7,466,246 05‐COMMUNITY DEVELOPMENT2,857,233 2,750,788 3,656,700 3,874,260 4,033,838 4,200,554 4,373,619 4,554,280 4,743,084 4,940,416 5,146,677 06‐RECREATION & PARKS2,387,343 2,412,019 3,014,400 3,213,011 3,352,902 3,499,274 3,650,874 3,809,275 3,975,070 4,148,614 4,330,280 07‐NON‐DEPARTMENTAL985,640 1,196,889 1,120,100 1,124,953 1,155,702 1,187,373 1,219,994 1,253,594 1,288,201 1,323,847 1,360,563 TOTAL EXPENDITURES, BY DEPARTMENT25,988,088 26,215,585 27,418,400 28,727,012 29,857,857 31,035,339 32,231,859 33,473,147 34,766,133 36,113,072 37,516,323 CURRENT SURPLUS/(DEFICIT) ‐ BEFORE TRANSFERS3,235,917 2,083,615 2,657,300 4,260,147 4,524,851 4,157,928 3,800,689 3,428,507 3,035,594 2,620,454 2,181,945 % ANNUAL REVENUES & SOURCES11.1% 7.4% 8.8% 12.9% 13.2% 11.8% 10.5% 9.3% 8.0% 6.8% 5.5%TRANSFERS‐IN15‐TRANSFERS‐IN 275,000 230,000 350,000 298,000 253,000 253,000 253,000 253,000 253,000 253,000 253,000 TRANSFERS‐OUT08‐TRANSFERS‐OUT 2,550,752 1,587,200 2,945,000 3,913,478 4,339,864 4,092,487 3,810,892 3,516,583 3,208,047 2,886,749 2,550,134 TOTAL REVENUE & TRANSFERS‐IN 29,499,005 28,529,200 30,425,700 33,285,158 34,635,707 35,446,267 36,285,549 37,154,654 38,054,727 38,986,526 39,951,268 TOTAL EXPENDITURES & TRANSFERS‐OUT28,538,840 27,802,785 30,363,400 32,640,490 34,197,721 35,127,826 36,042,751 36,989,730 37,974,180 38,999,822 40,066,457 TOTAL SURPLUS/(DEFICIT)960,164 726,415 62,300 644,669 437,986 318,440 242,798 164,924 80,547 (13,295) (115,189) FUND BALANCE‐BEGINNING20,788,547 21,748,711 22,475,126 22,537,426 23,182,095 23,620,081 23,938,522 24,181,319 24,346,244 24,426,791 24,413,496 FUND BALANCE PER TAB 12‐FUND BALANCESFUND BALANCE‐END21,748,711 22,475,126 22,537,426 23,182,095 23,620,081 23,938,522 24,181,319 24,346,244 24,426,791 24,413,496 24,298,307 VARIANCE TO TAB 12‐FUND BALANCESC-2 CITY OF RANCHO PALOS VERDES, CA ‐ WORK‐IN‐PROGRESSINDEXFORECAST SUMMARY< SELECT FUND2018A 2019A 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030FREVENUES (BY ACCOUNT TYPE)11‐INTERGOVT‐FEDERAL‐ 5,007 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 12‐INTERGOVT‐STATE‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 13‐INTERGOVT‐LOCAL‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ SUBTOTAL‐INTERGOVT REVENUE‐ 5,007 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 17‐INTEREST EARNINGS303,781 508,963 471,473 205,200 200,000 201,500 203,515 206,059 209,150 212,810 217,066 221,407 225,836 TOTAL REVENUES303,781 513,970 471,473 205,200 200,000 201,500 203,515 206,059 209,150 212,810 217,066 221,407 225,836 % ANNUAL CHANGE‐9.3% 69.2%‐8.3%‐56.5%‐2.5% 0.8% 1.0% 1.3% 1.5% 1.8% 2.0% 2.0% 2.0%EXPENDITURES (BY ACCOUNT TYPE)11‐PROF/TECH SERVICES‐OTHER‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14‐OTHER SERVICES‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 16‐OPERATING SUPPLIES / MINOR EQUIPMENT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 17‐CAPITAL PROJECTS7,503,608 3,291,424 4,652,908 3,792,312 2,945,000 4,273,800 3,641,600 4,970,800 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 TOTAL EXPENDITURES, BY ACCOUNT GROUP7,503,608 3,291,424 4,652,908 3,792,312 2,945,000 4,273,800 3,641,600 4,970,800 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 % ANNUAL CHANGE5.6%‐56.1% 41.4%‐18.5%‐22.3% 45.1%‐14.8% 36.5%‐29.0%‐8.6%‐9.8%‐11.4%‐13.4%EXPENDITURES (BY DEPARTMENT)04‐PUBLIC WORKS 7,503,608 3,291,424 4,652,908 3,792,312 2,945,000 4,273,800 3,641,600 4,970,800 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 TOTAL EXPENDITURES, BY DEPARTMENT 7,503,608 3,291,424 4,652,908 3,792,312 2,945,000 4,273,800 3,641,600 4,970,800 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 CURRENT SURPLUS/(DEFICIT) ‐ BEFORE TRANSFERS(7,199,827) (2,777,454) (4,181,435) (3,587,112) (2,745,000) (4,072,300) (3,438,085) (4,764,741) (3,318,742) (3,011,773) (2,690,981) (2,356,342) (2,007,298) % ANNUAL REVENUES & SOURCES‐2370.1%‐540.4%‐886.9%‐1748.1%‐1372.5%‐2021.0%‐1689.4%‐2312.3%‐1586.8%‐1415.2%‐1239.7%‐1064.3%‐888.8%TRANSFERS‐IN15‐TRANSFERS‐IN4,526,000 5,389,170 2,509,052 1,557,200 2,553,000 3,775,478 4,096,864 3,818,487 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 TRANSFERS‐OUT08‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL REVENUE & TRANSFERS‐IN4,829,781 5,903,140 2,980,525 1,762,400 2,753,000 3,976,978 4,300,379 4,024,546 3,737,042 3,437,393 3,125,113 2,799,157 2,458,970 TOTAL EXPENDITURES & TRANSFERS‐OUT7,503,608 3,291,424 4,652,908 3,792,312 2,945,000 4,273,800 3,641,600 4,970,800 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 TOTAL SURPLUS/(DEFICIT)(2,673,827) 2,611,716 (1,672,382) (2,029,912) (192,000) (296,822) 658,779 (946,254) 209,150 212,810 217,066 221,407 225,836 FUND BALANCE‐BEGINNING27,079,302 24,405,474 27,017,191 25,344,808 23,314,896 23,122,896 22,826,074 23,484,853 22,538,600 22,747,750 22,960,559 23,177,626 23,399,033 FUND BALANCE PER TAB 12‐FUND BALANCESFUND BALANCE‐END24,405,474 27,017,191 25,344,808 23,314,896 23,122,896 22,826,074 23,484,853 22,538,600 22,747,750 22,960,559 23,177,626 23,399,033 23,624,869 VARIANCE TO TAB 12‐FUND BALANCESC-3 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 101-GENERAL FUND 1-REVENUES 29,224,005 28,299,200 30,075,700 32,987,158 34,382,707 35,193,267 36,032,549 36,901,654 37,801,727 38,733,526 39,698,268 2-EXPENDITURES 25,988,088 26,215,585 27,418,400 28,727,012 29,857,857 31,035,339 32,231,859 33,473,147 34,766,133 36,113,072 37,516,323 OPERATING SURPLUS/(DEFICIT)3,235,917 2,083,615 2,657,300 4,260,147 4,524,851 4,157,928 3,800,689 3,428,507 3,035,594 2,620,454 2,181,945 3-TRANSFERS-IN 275,000 230,000 350,000 298,000 253,000 253,000 253,000 253,000 253,000 253,000 253,000 4-TRANSFERS-OUT 2,550,752 1,587,200 2,945,000 3,913,478 4,339,864 4,092,487 3,810,892 3,516,583 3,208,047 2,886,749 2,550,134 TRANSFERS NET (2,275,752) (1,357,200) (2,595,000) (3,615,478) (4,086,864) (3,839,487) (3,557,892) (3,263,583) (2,955,047) (2,633,749) (2,297,134) TOTAL OVER/(UNDER)960,164 726,415 62,300 644,669 437,986 318,440 242,798 164,924 80,547 (13,295) (115,189) BALANCE 21,748,712 22,475,127 22,537,427 23,182,096 23,620,082 23,938,523 24,181,320 24,346,245 24,426,792 24,413,497 24,298,308 POLICY RESERVE (50% EXPS.)12,994,044 13,107,792 13,709,200 14,363,506 14,928,928 15,517,669 16,115,930 16,736,573 17,383,066 18,056,536 18,758,161 EXCESS/(DEFICIENCY)8,754,668 9,367,335 8,828,227 8,818,590 8,691,154 8,420,853 8,065,390 7,609,671 7,043,725 6,356,960 5,540,147 202-GAS TAX 1-REVENUES 1,726,895 1,463,200 1,955,500 1,955,541 1,955,595 1,955,664 1,955,747 1,955,846 1,955,961 1,956,078 1,956,198 2-EXPENDITURES 1,085,395 2,975,649 1,630,000 957,900 986,637 1,016,236 1,046,723 1,078,125 1,110,469 1,143,783 1,178,096 OPERATING SURPLUS/(DEFICIT)641,500 (1,512,449) 325,500 997,641 968,958 939,427 909,024 877,721 845,492 812,295 778,101 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)641,500 (1,512,449) 325,500 997,641 968,958 939,427 909,024 877,721 845,492 812,295 778,101 BALANCE 1,526,234 13,785 339,285 1,336,926 2,305,883 3,245,311 4,154,335 5,032,056 5,877,548 6,689,843 7,467,945 203-1972 ACT LANDSCAPE/LIGHT 1-REVENUES 501 200 200 202 204 206 209 213 217 221 226 2-EXPENDITURES - - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)501 200 200 202 204 206 209 213 217 221 226 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)501 200 200 202 204 206 209 213 217 221 226 BALANCE 28,885 29,085 29,285 29,486 29,690 29,896 30,105 30,318 30,535 30,756 30,982 209-EL PRADO LIGHTING DIST 1-REVENUES 3,479 2,500 2,500 2,594 2,691 2,793 2,900 3,011 3,127 3,248 3,374 2-EXPENDITURES - 800 800 824 849 874 900 927 955 984 1,013 OPERATING SURPLUS/(DEFICIT)3,479 1,700 1,700 1,770 1,842 1,919 1,999 2,084 2,172 2,264 2,360 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)3,479 1,700 1,700 1,770 1,842 1,919 1,999 2,084 2,172 2,264 2,360 BALANCE 36,254 37,954 39,654 41,424 43,266 45,185 47,184 49,268 51,440 53,704 56,064 D-1 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 211-1911 ACT STREET LIGHTING 1-REVENUES 958,138 883,000 628,200 652,906 678,629 705,410 733,292 762,318 792,534 823,953 856,623 2-EXPENDITURES 970,975 880,390 646,100 505,833 521,008 536,638 552,737 569,319 586,399 603,991 622,111 OPERATING SURPLUS/(DEFICIT)(12,836) 2,610 (17,900) 147,073 157,621 168,772 180,554 192,998 206,134 219,962 234,512 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)(12,836) 2,610 (17,900) 147,073 157,621 168,772 180,554 192,998 206,134 219,962 234,512 BALANCE 1,446,775 1,449,385 1,431,485 1,578,558 1,736,178 1,904,950 2,085,505 2,278,503 2,484,637 2,704,599 2,939,111 212-BEAUTIFICATION 1-REVENUES - - - - - - - - - - - 2-EXPENDITURES - - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)- - - - - - - - - - - 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)- - - - - - - - - - - BALANCE - - - - - - - - - - - 213-WASTE REDUCTION 1-REVENUES 224,466 146,600 131,000 131,035 131,081 131,139 131,210 131,295 131,393 131,492 131,594 2-EXPENDITURES 223,785 304,500 340,700 352,938 364,085 375,629 387,420 399,604 412,224 425,298 438,843 OPERATING SURPLUS/(DEFICIT)681 (157,900) (209,700) (221,903) (233,004) (244,490) (256,209) (268,309) (280,832) (293,806) (307,249) 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)681 (157,900) (209,700) (221,903) (233,004) (244,490) (256,209) (268,309) (280,832) (293,806) (307,249) BALANCE 454,757 296,857 87,157 (134,746) (367,751) (612,241) (868,450) (1,136,759) (1,417,591) (1,711,397) (2,018,646) 214-AIR QUALITY MANAGEMENT 1-REVENUES 55,749 55,000 58,900 58,911 58,926 58,945 58,969 58,996 59,028 59,061 59,094 2-EXPENDITURES - 57,000 57,000 58,710 60,471 62,285 64,154 66,079 68,061 70,103 72,206 OPERATING SURPLUS/(DEFICIT)55,749 (2,000) 1,900 201 (1,545) (3,340) (5,185) (7,083) (9,033) (11,042) (13,112) 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)55,749 (2,000) 1,900 201 (1,545) (3,340) (5,185) (7,083) (9,033) (11,042) (13,112) BALANCE 152,761 150,761 152,661 152,862 151,317 147,977 142,792 135,709 126,676 115,634 102,522 D-2 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 215-PROPOSITION C 1-REVENUES 701,418 702,400 705,200 705,247 705,309 705,388 705,484 705,597 705,729 705,864 706,001 2-EXPENDITURES 698,806 950,379 995,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 OPERATING SURPLUS/(DEFICIT)2,612 (247,979) (289,800) 5,247 5,309 5,388 5,484 5,597 5,729 5,864 6,001 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)2,612 (247,979) (289,800) 5,247 5,309 5,388 5,484 5,597 5,729 5,864 6,001 BALANCE 579,712 331,733 41,933 47,179 52,488 57,876 63,360 68,957 74,686 80,550 86,551 216-PROPOSITION A 1-REVENUES 874,799 849,900 852,700 852,779 852,885 853,018 853,180 853,373 853,596 853,824 854,056 2-EXPENDITURES 1,236,693 1,502,021 793,000 816,790 841,294 866,533 892,528 919,304 946,883 975,290 1,004,549 OPERATING SURPLUS/(DEFICIT)(361,894) (652,121) 59,700 35,989 11,591 (13,514) (39,348) (65,932) (93,287) (121,466) (150,492) 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)(361,894) (652,121) 59,700 35,989 11,591 (13,514) (39,348) (65,932) (93,287) (121,466) (150,492) BALANCE 2,017,430 1,365,309 1,425,009 1,460,998 1,472,589 1,459,074 1,419,726 1,353,794 1,260,507 1,139,041 988,548 217-PUBLIC SAFETY GRANTS 1-REVENUES 158,079 160,000 157,700 157,709 157,721 157,736 157,755 157,777 157,802 157,828 157,855 2-EXPENDITURES - - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)158,079 160,000 157,700 157,709 157,721 157,736 157,755 157,777 157,802 157,828 157,855 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT 175,000 130,000 200,000 200,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 TRANSFERS NET (175,000) (130,000) (200,000) (200,000) (155,000) (155,000) (155,000) (155,000) (155,000) (155,000) (155,000) TOTAL OVER/(UNDER)(16,921) 30,000 (42,300) (42,291) 2,721 2,736 2,755 2,777 2,802 2,828 2,855 BALANCE 76,420 106,420 64,120 21,829 24,550 27,286 30,041 32,818 35,621 38,449 41,304 220-MEASURE R 1-REVENUES 533,059 545,400 547,500 547,575 547,676 547,803 547,957 548,140 548,353 548,570 548,792 2-EXPENDITURES 72,167 1,033,803 1,285,000 650,000 650,000 - - - - - - OPERATING SURPLUS/(DEFICIT)460,892 (488,403) (737,500) (102,425) (102,324) 547,803 547,957 548,140 548,353 548,570 548,792 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)460,892 (488,403) (737,500) (102,425) (102,324) 547,803 547,957 548,140 548,353 548,570 548,792 BALANCE 1,264,041 775,638 38,138 (64,287) (166,611) 381,192 929,149 1,477,290 2,025,643 2,574,213 3,123,005 D-3 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 221-MEASURE M 1-REVENUES 580,618 530,000 1,194,200 1,194,214 1,194,232 1,194,255 1,194,282 1,194,315 1,194,354 1,194,393 1,194,433 2-EXPENDITURES 525,317 536,000 1,312,000 578,860 596,226 614,113 632,536 651,512 671,057 691,189 711,925 OPERATING SURPLUS/(DEFICIT)55,302 (6,000) (117,800) 615,354 598,006 580,142 561,746 542,803 523,296 503,204 482,508 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)55,302 (6,000) (117,800) 615,354 598,006 580,142 561,746 542,803 523,296 503,204 482,508 BALANCE 99,008 93,008 (24,792) 590,562 1,188,567 1,768,709 2,330,456 2,873,259 3,396,555 3,899,759 4,382,266 222-HABITAT RESTORATION 1-REVENUES 18,725 7,000 12,400 12,493 12,618 12,776 12,967 13,194 13,458 13,727 14,002 2-EXPENDITURES 152,745 184,900 185,300 190,859 196,585 202,482 208,557 214,813 221,258 227,896 234,732 OPERATING SURPLUS/(DEFICIT)(134,020) (177,900) (172,900) (178,366) (183,967) (189,707) (195,589) (201,619) (207,800) (214,168) (220,731) 3-TRANSFERS-IN - - 0 0 0 - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - 0 0 0 - - - - - - TOTAL OVER/(UNDER)(134,020) (177,900) (172,900) (178,366) (183,967) (189,707) (195,589) (201,619) (207,800) (214,168) (220,731) BALANCE 815,498 637,598 464,698 286,332 102,365 (87,341) (282,931) (484,550) (692,350) (906,518) (1,127,249) EMERGENCY PROJECTS RESERVE 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 EXCESS/(DEFICIENCY)765,498 587,598 414,698 236,332 52,365 (137,341) (332,931) (534,550) (742,350) (956,518) (1,177,249) 223-SUBREGION ONE MAINTENANCE 1-REVENUES 13,442 7,000 14,000 14,105 14,246 14,424 14,640 14,897 15,195 15,499 15,808 2-EXPENDITURES 42,529 41,600 41,600 42,848 44,133 45,457 46,821 48,226 49,673 51,163 52,698 OPERATING SURPLUS/(DEFICIT)(29,087) (34,600) (27,600) (28,743) (29,887) (31,033) (32,181) (33,329) (34,478) (35,664) (36,889) 3-TRANSFERS-IN 35,000 10,000 30,000 30,000 30,000 31,000 32,000 34,000 35,000 36,000 38,000 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET 35,000 10,000 30,000 30,000 30,000 31,000 32,000 34,000 35,000 36,000 38,000 TOTAL OVER/(UNDER)5,913 (24,600) 2,400 1,257 113 (33) (181) 671 522 336 1,111 BALANCE 771,233 746,633 749,033 750,290 750,403 750,369 750,189 750,860 751,382 751,717 752,828 NON-SPENDABLE ENDOWMENT 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 EXCESS/(DEFICIENCY)21,233 (3,367) (967) 290 403 369 189 860 1,382 1,717 2,828 224-MEASURE A MAINTENANCE 1-REVENUES 94,466 91,000 98,000 98,002 98,004 98,006 98,009 98,013 98,017 98,021 98,026 2-EXPENDITURES - - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)94,466 91,000 98,000 98,002 98,004 98,006 98,009 98,013 98,017 98,021 98,026 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT 100,000 100,000 150,000 98,000 98,000 98,000 98,000 98,000 98,000 98,000 98,000 TRANSFERS NET (100,000) (100,000) (150,000) (98,000) (98,000) (98,000) (98,000) (98,000) (98,000) (98,000) (98,000) TOTAL OVER/(UNDER)(5,534) (9,000) (52,000) 2 4 6 9 13 17 21 26 BALANCE 61,284 52,284 284 285 289 295 304 317 334 356 381 D-4 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 225-ABALONE COVE SEWER DIST 1-REVENUES 60,055 52,000 52,000 54,015 56,115 58,304 60,584 62,961 65,437 68,011 70,687 2-EXPENDITURES 138,009 151,700 157,500 162,748 167,876 173,170 178,605 184,211 189,998 195,973 202,142 OPERATING SURPLUS/(DEFICIT)(77,954) (99,700) (105,500) (108,733) (111,761) (114,867) (118,021) (121,250) (124,561) (127,962) (131,455) 3-TRANSFERS-IN - - 0 56,000 111,000 115,000 118,000 122,000 124,000 128,000 131,000 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - 0 56,000 111,000 115,000 118,000 122,000 124,000 128,000 131,000 TOTAL OVER/(UNDER)(77,954) (99,700) (105,500) (52,733) (761) 133 (21) 750 (561) 38 (455) BALANCE 258,999 159,299 53,799 1,066 305 439 418 1,168 607 645 190 227-GINSBURG CULTURAL ART BLD 1-REVENUES - - - - - - - - - - - 2-EXPENDITURES 1,045 - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)(1,045) - - - - - - - - - - 3-TRANSFERS-IN - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - #VALUE!- TOTAL OVER/(UNDER)(1,045) - - - - - - - - #VALUE!- BALANCE - - - - - - - - - #VALUE!#VALUE! 228-DONOR RESTRICTED CONTRIB 1-REVENUES 23,560 7,000 25,000 25,188 25,439 25,757 26,144 26,601 27,133 27,676 28,229 2-EXPENDITURES 16,770 38,422 51,000 52,530 54,106 55,729 57,401 59,123 60,897 62,724 64,605 OPERATING SURPLUS/(DEFICIT)6,791 (31,422) (26,000) (27,343) (28,667) (29,972) (31,257) (32,522) (33,763) (35,048) (36,376) 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)6,791 (31,422) (26,000) (27,343) (28,667) (29,972) (31,257) (32,522) (33,763) (35,048) (36,376) BALANCE 781,953 750,531 724,531 697,189 668,522 638,550 607,293 574,771 541,008 505,960 469,584 285-IA PORTUGUESE BEND MAINT 1-REVENUES 2,136 500 500 504 509 515 523 532 543 554 565 2-EXPENDITURES 54,043 49,500 80,000 82,400 84,872 87,418 90,041 92,742 95,524 98,390 101,342 OPERATING SURPLUS/(DEFICIT)(51,908) (49,000) (79,500) (81,896) (84,363) (86,903) (89,518) (92,210) (94,982) (97,836) (100,777) 3-TRANSFERS-IN 55,000 20,000 55,000 52,000 84,000 87,000 90,000 92,000 95,000 98,000 100,000 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET 55,000 20,000 55,000 52,000 84,000 87,000 90,000 92,000 95,000 98,000 100,000 TOTAL OVER/(UNDER)3,092 (29,000) (24,500) (29,896) (363) 97 482 (210) 18 164 (777) BALANCE 84,068 55,068 30,568 672 309 406 888 678 696 860 83 D-5 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 310-CDBG 1-REVENUES 226,364 217,700 365,600 365,600 365,600 365,600 365,600 365,600 365,600 365,600 365,600 2-EXPENDITURES 211,806 162,999 150,000 - - - - - - - - OPERATING SURPLUS/(DEFICIT)14,558 54,701 215,600 365,600 365,600 365,600 365,600 365,600 365,600 365,600 365,600 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)14,558 54,701 215,600 365,600 365,600 365,600 365,600 365,600 365,600 365,600 365,600 BALANCE 26,016 80,717 296,317 661,917 1,027,517 1,393,117 1,758,717 2,124,317 2,489,917 2,855,517 3,221,117 330-INFRASTRUCTURE IMPRVMNTS 1-REVENUES 471,473 205,200 200,000 201,500 203,515 206,059 209,150 212,810 217,066 221,407 225,836 2-EXPENDITURES 4,652,908 3,792,312 2,945,000 4,273,800 3,641,600 4,970,800 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 OPERATING SURPLUS/(DEFICIT)(4,181,435) (3,587,112) (2,745,000) (4,072,300) (3,438,085) (4,764,741) (3,318,742) (3,011,773) (2,690,981) (2,356,342) (2,007,298) 3-TRANSFERS-IN 2,509,052 1,557,200 2,553,000 3,775,478 4,096,864 3,818,487 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET 2,509,052 1,557,200 2,553,000 3,775,478 4,096,864 3,818,487 3,527,892 3,224,583 2,908,047 2,577,749 2,233,134 TOTAL OVER/(UNDER)(1,672,382) (2,029,912) (192,000) (296,822) 658,779 (946,254) 209,150 212,810 217,066 221,407 225,836 BALANCE 25,344,808 23,314,896 23,122,896 22,826,074 23,484,853 22,538,599 22,747,749 22,960,559 23,177,625 23,399,033 23,624,868 EMERGENCY PROJECTS RESERVE 3,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 EXCESS/(DEFICIENCY)22,344,808 18,314,896 18,122,896 17,826,074 18,484,853 17,538,599 17,747,749 17,960,559 18,177,625 18,399,033 18,624,868 331-FEDERAL GRANTS 1-REVENUES - - 999,900 999,900 999,900 999,900 999,900 999,900 999,900 999,900 999,900 2-EXPENDITURES 14 - 999,900 999,900 999,900 999,900 999,900 999,900 999,900 999,900 999,900 OPERATING SURPLUS/(DEFICIT)(14) - - - - - - - - - - 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT 98,300 - - - - - - - - - - TRANSFERS NET (98,300) - - - - - - - - - - TOTAL OVER/(UNDER)(98,314) - - - - - - - - - - BALANCE - - - - - - - - - - - 332-STATE GRANTS 1-REVENUES 626,179 213,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 2-EXPENDITURES 277,373 212,945 310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 OPERATING SURPLUS/(DEFICIT)348,805 55 - - - - - - - - - 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)348,805 55 - - - - - - - - - BALANCE - 55 55 55 55 55 55 55 55 55 55 D-6 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 334-QUIMBY PARK DEVELOPMENT 1-REVENUES 23,090 33,700 25,000 25,465 25,966 26,504 27,079 27,695 28,351 29,023 29,711 2-EXPENDITURES 545,813 267,990 - - - - - - - - - OPERATING SURPLUS/(DEFICIT)(522,723) (234,290) 25,000 25,465 25,966 26,504 27,079 27,695 28,351 29,023 29,711 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)(522,723) (234,290) 25,000 25,465 25,966 26,504 27,079 27,695 28,351 29,023 29,711 BALANCE 1,178,369 944,079 969,079 994,544 1,020,510 1,047,014 1,074,093 1,101,787 1,130,138 1,159,161 1,188,872 336-LOW-MODERATE INCOME HOUSI 1-REVENUES 31,861 26,600 31,900 33,124 34,401 35,732 37,120 38,567 40,076 41,644 43,274 2-EXPENDITURES - - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)31,861 26,600 31,900 33,124 34,401 35,732 37,120 38,567 40,076 41,644 43,274 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)31,861 26,600 31,900 33,124 34,401 35,732 37,120 38,567 40,076 41,644 43,274 BALANCE 222,221 248,821 280,721 313,845 348,246 383,977 421,097 459,664 499,740 541,384 584,658 337-AFFORDABLE HOUSING PROJ 1-REVENUES 17,290 21,000 17,300 17,332 17,376 17,430 17,497 17,575 17,667 17,760 17,855 2-EXPENDITURES - - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)17,290 21,000 17,300 17,332 17,376 17,430 17,497 17,575 17,667 17,760 17,855 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)17,290 21,000 17,300 17,332 17,376 17,430 17,497 17,575 17,667 17,760 17,855 BALANCE 856,127 877,127 894,427 911,759 929,135 946,565 964,062 981,637 999,304 1,017,064 1,034,920 338-DEVELOP IMPACT MIT (EET)1-REVENUES 122,132 10,000 10,000 10,216 10,443 10,681 10,932 11,194 11,470 11,753 12,042 2-EXPENDITURES 286,881 156,000 210,000 216,300 222,789 229,473 236,357 243,448 250,751 258,274 266,022 OPERATING SURPLUS/(DEFICIT)(164,748) (146,000) (200,000) (206,084) (212,346) (218,792) (225,425) (232,253) (239,281) (246,521) (253,979) 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)(164,748) (146,000) (200,000) (206,084) (212,346) (218,792) (225,425) (232,253) (239,281) (246,521) (253,979) BALANCE 346,815 200,815 815 (205,269) (417,616) (636,407) (861,833) (1,094,086) (1,333,367) (1,579,887) (1,833,867) D-7 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 340-BICYCLE/PEDESTRIAN ACCESS 1-REVENUES - - 110,000 - - - - - - - - 2-EXPENDITURES - - 110,000 - - - - - - - - OPERATING SURPLUS/(DEFICIT)- - - - - - - - - - - 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)- - - - - - - - - - - BALANCE - - - - - - - - - - - 343-MEASURE W 1-REVENUES - 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 690,000 2-EXPENDITURES - 213,537 588,345 605,995 624,175 642,900 662,187 682,053 702,515 723,590 745,298 OPERATING SURPLUS/(DEFICIT)- 476,463 101,655 84,005 65,825 47,100 27,813 7,947 (12,515) (33,590) (55,298) 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)- 476,463 101,655 84,005 65,825 47,100 27,813 7,947 (12,515) (33,590) (55,298) BALANCE - 476,463 578,118 662,123 727,947 775,047 802,859 810,806 798,292 764,702 709,404 681-EQUIPMENT REPLACEMENT 1-REVENUES 131,736 115,000 330,400 330,550 330,752 331,006 331,315 331,681 332,107 332,541 332,984 2-EXPENDITURES 360,247 788,997 707,800 707,800 707,800 707,800 707,800 707,800 707,800 707,800 707,800 OPERATING SURPLUS/(DEFICIT)(228,511) (673,997) (377,400) (377,250) (377,049) (376,794) (376,485) (376,119) (375,693) (375,259) (374,816) 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)(228,511) (673,997) (377,400) (377,250) (377,049) (376,794) (376,485) (376,119) (375,693) (375,259) (374,816) BALANCE 2,956,661 2,282,664 1,905,264 1,528,014 1,150,966 774,171 397,686 21,567 (354,126) (729,385) (1,104,202) 682-EMPLOYEE PENSION PLAN 1-REVENUES - - - - - - - - - - - 2-EXPENDITURES - - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)- - - - - - - - - - - 3-TRANSFERS-IN - - 307,000 - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - 307,000 - - - - - - - - TOTAL OVER/(UNDER)- - 307,000 - - - - - - - - BALANCE - - 307,000 307,000 307,000 307,000 307,000 307,000 307,000 307,000 307,000 D-8 CITY OF RANCHO PALOS VERDES, CA - WORK-IN-PROGRESS INDEX FUND SUMMARY FUND TYPE 2020A 2021E 2022B 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 701-REDEV OBLIGATION RETIREMENT 1-REVENUES 774,283 - - - - - - - - - - 2-EXPENDITURES 413,777 - - - - - - - - - - OPERATING SURPLUS/(DEFICIT)360,506 - - - - - - - - - - 3-TRANSFERS-IN - - - - - - - - - - - 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET - - - - - - - - - - - TOTAL OVER/(UNDER)360,506 - - - - - - - - - - BALANCE - - - - - - - - - - - 795-IA ABALONE COVE MAINT 1-REVENUES 26,260 8,000 7,500 7,556 7,632 7,727 7,843 7,980 8,140 8,303 8,469 2-EXPENDITURES 20,509 37,000 45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344 57,005 OPERATING SURPLUS/(DEFICIT)5,751 (29,000) (37,500) (38,794) (40,109) (41,446) (42,805) (44,187) (45,592) (47,042) (48,536) 3-TRANSFERS-IN 50,000 - 0 0 18,000 41,000 43,000 44,000 46,000 47,000 48,000 4-TRANSFERS-OUT - - - - - - - - - - - TRANSFERS NET 50,000 - 0 0 18,000 41,000 43,000 44,000 46,000 47,000 48,000 TOTAL OVER/(UNDER)55,751 (29,000) (37,500) (38,794) (22,109) (446) 195 (187) 408 (42) (536) BALANCE 1,128,363 1,099,363 1,061,863 1,023,069 1,000,961 1,000,515 1,000,710 1,000,523 1,000,931 1,000,889 1,000,354 NON-SPENDABLE ENDOWMENT 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 EXCESS/(DEFICIENCY)128,363 99,363 61,863 23,069 961 515 710 523 931 889 354 TOTAL 1-REVENUES 37,704,260 35,342,100 39,608,800 42,441,417 43,870,169 44,716,045 45,592,838 46,501,735 47,443,979 48,419,477 49,429,501 2-EXPENDITURES 37,975,696 40,554,029 41,059,445 41,040,397 41,680,004 43,681,950 43,585,067 44,677,083 45,812,276 46,992,512 48,219,742 OPERATING SURPLUS/(DEFICIT)(271,436) (5,211,929) (1,450,645) 1,401,020 2,190,165 1,034,095 2,007,771 1,824,652 1,631,703 1,426,965 1,209,758 3-TRANSFERS-IN 2,924,052 1,817,200 3,295,000 4,211,478 4,592,864 4,345,487 4,063,892 3,769,583 3,461,047 3,139,749 2,803,134 4-TRANSFERS-OUT 2,924,052 1,817,200 3,295,000 4,211,478 4,592,864 4,345,487 4,063,892 3,769,583 3,461,047 3,139,749 2,803,134 TRANSFERS NET (0) - (0) - - - - - - - - TOTAL OVER/(UNDER)(271,436) (5,211,929) (1,450,645) 1,401,020 2,190,165 1,034,095 2,007,771 1,824,652 1,631,703 1,426,965 1,209,758 BALANCE 64,263,404 59,051,475 57,600,830 59,001,850 61,192,015 62,226,110 64,233,881 66,058,532 67,690,235 #VALUE!#VALUE! D-9