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CC SR 20230516 01 - FY 2023-24 Preliminary Budget CITY COUNCIL MEETING DATE: 05/16/2023 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to review the Fiscal Year 2022-23 year-end estimates, the FY 2023-24 Preliminary Budget, and estimated fund balances for all funds, excluding Improvement Authorities. RECOMMENDED COUNCIL ACTION: (1) Review the FY 2022-23 year-end estimates and approve Budget Adjustments in the General Fund by reducing the budget in the amount of $1,805,600 in Personnel and increasing Transfers-Out by $1,169,900 based on the third quarter year-end estimates. (2) Review the Preliminary FY 2023-24 Budget for the General Fund and affirm the changes since the Budget Workshop: • Increase the General Fund Revenues by $143,200. • Increase the General Fund Personnel costs by $114,000. • Decrease the General Fund Non-Personnel $107,200. • Revise General Fund Transfers-Out: i. Increase Capital Infrastructure Program (CIP) by $243,200. ii. Add Abalone Cove Sewer Maintenance Fund by $70,000. • Retain the unallocated balance of $715,300 instead of transferring it to the CIP Fund. (3) Review and approve the Preliminary FY 2023-24 Budget consisting of the Capital Infrastructure Program (CIP) Fund, Special Revenue Funds, and Internal Service Funds, and affirm the revised list for the FY 2023-24 Capital Improvement Program. (4) Review and provide direction on the following potential options for reserving funds towards the Civic Center and Portuguese Bend Landslide Remediation projects: • Option 1 (existing): Pursuant to existing City Council Reserve Policy No. 41, the City Council may assign the current CIP Reserve for major capital improvements of $5 million to Civic Center Master Plan and/or Portuguese Bend Landslide Remediation Projects. • Option 2: Subject to the annual budget process and the unrestricted fund balance in CIP, the City Council may consider increasing the CIP reserves for major capital improvements of $5 million to $10 million. • Option No. 3: Subject to the annual budgeting process, the City Council may consider transferring a portion or all of the $5 million in a separate fund for the Civic Center Master Plan and/or Portuguese Bend Landslide Remediation projects. 1 RANCHO PALOS VERDES • Option 4: Direct Staff to present the future funding options to the Finance Advisory Committee and solicit feedback and recommendations that the City Council may consider at a future meeting. (5) Direct staff to return on June 20, 2023 for the budget public hearing and budget adoption consideration. FISCAL IMPACT: The FY 2023-24 Preliminary Citywide Budget includes total revenues of $54.2 million and total expenditures of $55.8 million for all funds, before transfers. The total FY 2023-24 Preliminary Budget for General Fund revenues are $38.5 million, and expenditures are $33.5 million, excluding transfers. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): None ORIGINATED BY: Jason Loya, 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 2022-23 Proposed Budget Adjustments for Savings and Unused Budget (page A-1) B. FY 2023-24 Preliminary Budget Summary (page B-1) C. FY 2023-24 CIP Status and Five-year CIP (page C-1) D. April 6, 2023 General Fund Budget Workshop Staff Report (page D-1) E. April 12, 2023 Capital Improvement Program Workshop Staff Report (page E-1) BACKGROUND: On April 6, 2023, the City Council held its annual General Fund Budget Workshop, where Staff presented FY 2022-23 year-end estimates and the list of assumptions used to develop the FY 2023-24 Proposed Budget for the General Fund. Staff also informed the City Council that an updated year-end report would be prepared at the conclusion of the third quarter and presented as part of the FY 2023-24 Preliminary Budget staff report in May. On April 12, 2023, the City Council held the Capital Improvement Program Workshop to receive a status report on the current FY 2022-23 projects, and at the same meeting, Staff presented the FY 2023-24 Proposed Five-Year Capital Improvement Program. At the end of both workshops, Staff obtained the necessary instructions to prepare the FY 2023-24 Preliminary Budget. 2 J1.- V (L Based on the direction provided by the City Council at the budget workshops, the information presented tonight for the City Council mainly highlights the changes from the FY 2023-24 Proposed Budget to FY 2023-24 Preliminary Budget. The comprehensive staff report for the FY 2023-24 budget will be presented at the June 20 public hearing meeting. If the changes presented this evening are accepted by the City Council, they will be included in the report presented next month, as shown on the next page. It should be noted that in past years, the City Council held two meetings in June to review the preliminary budget. For this year, these two meetings are being combined with the public hearing and adoption consideration on June 20. DISCUSSION: 1. FY 2022-23 General Fund Year-End Estimate Changes At the April 6, 2023 Budget Workshop, Staff presented the estimated FY 2022-23 General Fund year-end revenues and expenditures. Staff reported that the estimated General Fund ending fund balance would be approximately $30.3 million, including transfers-out. After applying the City Council’s 50% Reserve Policy, the General Fund’s estimated Unrestricted Fund Balance is over $15.1 million. Over the past few weeks, Staff has conducted a thorough review of the latest data on revenues and expenditures. Based on this re-assessment, Staff is projecting the Unrestricted Fund Balance to remain at approximately $15.1 million, representing a slight decrease of $54,700 or less than 1% from the mid-year staff report. Table 1 summarizes the comparison of the mid-year and third quarter year-end estimates. Table 1 –General Fund Balance – Year-end Estimates 3 Below is the detailed explanation of the FY 2023-24 General Fund Year-End Estimates at the end of the third quarter ended on March 31, 2023. FY 2022-23 Revenues Year-End Estimate Changes Following the quarter ending March 31, 2023, Staff performed a review of the Citywide revenues in preparation for the Preliminary budget. Performing this review ensures that revenues are monitored on a continuous basis and provides an opportunity to analyze unusual trends or immediate changes in the economic environment. By way of this process, the FY 2022-23 year-end revenues are estimated to increase from $37.6 million to just under $38 million, including transfers. This change represents an increase of about $412,000, or 1%, compared to the year-end estimates at mid-year. An overview of the specific and material changes to the General Fund year-end revenue estimates are discussed below. Property Tax Property tax revenues will be slightly adjusted to account for a declining trend in property transfer taxes. When the ownership of a property changes hands, the ownership transfer document (Grant Deed) needs to be recorded. The County Recorder collects a “transfer fee” that is part of the revenue generated and dispersed to the City. Unlike secured and unsecured property tax revenues, this transaction occurs at the time of sale and is remitted shortly thereafter. Transfer taxes make up roughly 3% of total property tax revenues and are uniquely vulnerable to changing market conditions such as sales price and volume. Due to the declining trend in sales volume over the first three quarters in FY 2022-23, Staff recommends reducing the year-end estimate by $65,000. Through the month ending March, full value home sales have decreased by 145, or 40%, compared to the same period in FY 2021-22. The cooling housing market is likely to rebound slightly General Fund FY 2022-23 Revised Budget FY 2022-23 Year-End Estimates (Mid-Year) FY 2022-23 Year-End Estimates (3rd Qtr.) Beginning Fund Balance - 7/1/2022 30,391,900 30,391,900 30,729,000 337,100 1% Add: Revenues 35,737,000 37,266,500 37,678,800 412,300 1% Add: Transfers-In 300,000 300,000 300,000 - 0% Total Revenues 36,037,000 37,566,500 37,978,800 412,300 1% Less: Expenditures (32,476,674) (30,285,900) (30,585,900) 300,000 1% Less: Transfers to TOT (3,870,200) (4,686,000) (5,040,100) 354,100 8% Less: Transfers to CIP - Additional (1,364,200) (1,364,200) (1,364,200) - 0% Less: Other Transfers-Out (65,000) (65,000) (65,000) - 0% Less: Additional Transfers - CIP Ladera (PY Surplus) (889,500) (889,500) (889,500) - 0% Less: Transfers to Pension (PY Surplus) (400,000) (400,000) (400,000) - 0% Total Expenditures (39,065,574) (37,690,600) (38,344,700) 654,100 2% Estimated Ending Fund Balance - 6/30/2023 27,363,326 30,267,800 30,363,100 95,300 0.3% Restricted Fund Balance: 50% Reserve Policy (15,363,800) (15,142,950) (15,292,950) 150,000 1% Unrestricted Fund Balance - 06/30/23 11,999,526 15,124,850 15,070,150 (54,700) -0.4% Increase/(Decrease) from Mid-Year YE Estimates 4 during spring, however, any major shifts in this trend are considered unlikely. As such, the FY 2022-23 property tax revenues have been lowered to end the year at $16.4 million, or 0.4% less than previously expected. Property Tax FY 22-23 Budget: $16,406,800 FY 22-23 YE at Midyear: $16,440,800 FY 22-23 YE at Third Quarter: $16,375,800 Net Change to Year-End: ($65,000) or -0.4% Transient Occupancy Tax (TOT) TOT revenue generated by Terranea Resort has sustained a year-over-year growth rate of nearly 21% through the third quarter of FY 2022-23. Historical revenue growth is partly attributed to the continuous rebound in the restaurant and hotels category and is the result of increased consumer spending on travel and leisure. This ongoing recovery trend has continued despite efforts to slow down the economy. Terranea also increased hotel rates in 2023 due to the higher demand and return of business travel, which led to changes in the FY 2022-23 year-end projection. As of the third quarter, TOT revenue from Terranea totals $5 million and exceeds the prior perio d actuals by close to $0.9 million. Additionally, higher rates negotiated in contracts for group room reservations have bolstered the revenue forecast to nearly $1.7 million for the fourth quarter. Current projections indicate a FY 2022-23 year-end estimated total of $6.7 million for Terranea TOT. When adding miscellaneous TOT revenues, year-end estimates increased by $354,100 to $6.9 million, or 5.4% higher than the mid-year estimates. Transient Occupancy Tax FY 22-23 Budget: $5,750,100 FY 22-23 YE at Midyear: $6,573,800 FY 22-23 YE at Third Quarter: $6,927,900 Net Change to Year-End: $354,100 or 5.4% Utility Users Tax (UUT) Utility rates for electricity, natural gas, and water have fluctuated in category with prices remaining elevated compared to the prior year. As of March 2023, the prices for natural gas and electricity were up 5.5% and 10.2% compared to one year ago. Further increases to electricity rates also became effective as of 2023. More notably, the surge in natural gas pricing peaked during the first quarter of 2023, leading to higher than anticipated revenues. Additional movement to quell inflation are anticipated through additional rate increases by the Federal Reserve, indicating intentions to slow growth and stabilize pricing. However, the higher prices through March and current revenue trajectory have led Staff to adjust year-end estimates accordingly. The FY 2022-23 year-end estimate for UUT revenue increased by about $123,000 to $2.5 million, roughly 9.5% higher than at mid-year. Utility Users Tax 5 FY 22-23 Budget: $2,201,200 FY 22-23 YE at Midyear: $2,431,800 FY 22-23 YE at Third Quarter: $2,555,000 Net Change to Year-End: $123,200 or 5.1% Table 2 on the following page summarizes the Year-End Estimates and Third Quarter Year-End Estimates for FY 2022-23 revenue. Table 2 –General Fund Year-End Estimates – Revenues FY 2022-23 Expenditures Year-End Estimate Changes Since the April 6, 2023 Budget Workshop, Staff reviewed the current information available and identified changes to report on expenditures for a total increase of $654,100 or 2%. At the completion of the financial audit in April, $300,000 was reclassified as an escrow deposit for the Lower Filiorum and Plumtree properties. The payment is categorized as a prepaid payment in FY 2021-22 and an expenditure in FY 2022-23 since the purchase was not completed by year-end. This change is attributed to timing of expenditures, and as such, the impact on the fund balance is an increase of $300,000 in FY 2021-22 and an increase for the same amount in expenditures in FY 2022-23. FY 2021-22 Revenue Source Actuals Revised Budget YE Estimates at Mid-Year YE Estimates at 3rd Qtr Property Tax 15,741,842$ 16,406,800$ 16,440,800$ 16,375,800$ (65,000)$ -0.4% Transient Occupancy Tax 6,170,132 5,750,100 6,573,800 6,927,900 354,100$ 5.4% Sales Tax 2,782,443 2,687,200 2,844,400 2,844,400 -$ 0.0% Permits & Fees 3,338,328 3,077,600 3,425,200 3,425,200 -$ 0.0% Franchise Tax 2,278,003 2,150,000 2,150,000 2,150,000 -$ 0.0% Utility Users Tax 2,525,992 2,201,200 2,431,800 2,555,000 123,200$ 5.1% Other Taxes & Misc. Revenues 3,074,704 3,464,100 3,400,500 3,400,500 -$ 0.0% Subtotal 35,911,444 35,737,000 37,266,500 37,678,800 412,300 1.1% Transfers In 310,000 300,000 300,000 300,000 - 0.0% Total 36,221,444$ 36,037,000$ 37,566,500$ 37,978,800$ 412,300$ 1.1% Variance to Mid-Year Estimates FY 2022-23 6 . . In addition, Staff projects the Transfers-Out to increase by $354,100 or 5% over mid-year estimates to account for the estimated increase in revenue from TOT from Terranea Resort. The amount is an increase of the General Fund transfer to the CIP Fund. After applying the above changes, Staff projects the year-end expenditures increasing from $37.7 million to $38.3 million or 2% over mid-year estimates, including transfers-out and as presented below. Except for these changes, the other details of the expenditure year-end assumptions were previously presented to the City Council at the Budget Workshop on April 6 (Attachment E). Non-Personnel: FY 22-23 Revised Budget: $19,871,854 FY 22-23 YE at Midyear: $19,376,700 FY 22-23 YE at Third Quarter: $19,676,700 Net Change to Year-End: $300,000 or 1.5% 7 Personnel Costs FY 22-23 Revised Budget: $12,804,800 FY 22-23 YE at Midyear: $10,909,200 FY 22-23 YE at Third Quarter: $10,909,200 Net Change to Year-End: $0 Transfers-Out: FY 22-23 Revised Budget: $6,588,900 FY 22-23 YE at Midyear: $7,404,700 FY 22-23 YE at Third Quarter: $7,758,800 Net Change to Year-End: $354,100 or 5% Table 3 below is a summary of the Midyear Year-End Estimates and Third Quarter Year- End Estimates for FY 2022-23 General Fund Expenditures. Table 3 –General Fund Year-End Estimates – Expenditures As part of the annual process, Staff recommends adjusting the FY 202 2-23 Revised Budget to align with the third quarter year-end estimates for personnel and transfers-out. This process would release the identified savings and unused budget back to the fund balance. As such, Staff seeks City Council acceptance of the General Fund’s budget adjustments including: • Personnel – reduce FY 2022-23 Revised Budget by $1,805,600. • Transfers-Out – increase FY 2022-23 Revised Budget by $1,169,900. FY 2021-22 FY 2022-23 Expenditure Category Actuals Revised Budget Year-End Estimates at Mid-Year Year-End Estimates 3rd Qtr. Variance to Mid-Year YE Estimates Salaries 7,485,648 9,392,920 7,876,100 7,876,100 0 0% Benefits 2,917,883 3,411,900 3,033,100 3,033,100 0 0% Sheriff's Contract 6,985,320 7,254,000 7,140,000 7,140,000 0 0% Legal Services 910,480 940,000 900,000 900,000 0 0% Supplies 496,310 621,028 583,700 583,700 0 0% Professional/Tech 2,649,256 3,733,990 3,775,000 3,775,000 0 0% Repairs and Maintenance 1,731,038 3,279,428 3,061,900 3,061,900 0 0% Training/Conference 233,563 380,543 288,000 288,000 0 0% Misc. Expense Capital Outlay 444,539 1,090,115 1,089,000 1,389,000 300,000 28% Equipment Replacement Charges 308,400 292,200 290,900 290,900 0 0% General Liabilities Insurance 737,134 840,000 703,100 703,100 0 0% Utilities 919,588 671,300 926,400 926,400 0 0% Other 384,635 569,250 618,700 618,700 0 0% Subtotal 26,203,794 32,476,674 30,285,900 30,585,900 300,000 1% Transfers-Out 5,424,515 6,588,900 7,404,700 7,758,800 354,100 5% Total 31,628,309 39,065,574 37,690,600 38,344,700 654,100 2% 8 Additional budget account details are also presented in Attachment A. Any substantial changes to the year-end estimates will be reported in the FY 2022-23 unaudited actuals presented for the City Council’s review in December. Subsequently, Staff will present an audited final report of the Annual Comprehensive Financial Report (ACFR) in February/March 2024. 2. FY 2023-24 General Fund Preliminary Budget Changes Overview At the April 6 Budget Workshop, the City Council approved the presented budget assumptions for expenditures and revenues to develop the FY 2023-24 Preliminary Budget for the General Fund. Based on the assumptions, Staff projected almost $38.7 million of revenues, including transfers, which is an increase of approximately $1.5 million or 4% over the FY 2022-23 budget and $1.1 million or 3% over FY 2022-23 year-end estimates. The City Council also approved the proposed expenditure budget of $37.8 million, including transfers out. This represents an increase of $68,900 from the FY 2022-23 year- end estimates. When compared to the FY 2022-23 revised budget, the proposed budget shows a decrease of $1.3 million or 3%. Additionally, the City Council approved the Staff’s recommendation to transfer $889,500 to the CIP Fund for the Ladera Linda Community Center loan payment and $291,300 to the Employee Pension Service Fund EPSF for pension payments. The approved transfers are funded from the prior year’s unrestricted fund balance, and operating surplus, respectively. As a result of the proposed revenues and expenditures, Staff reported that the estimated unallocated balance is $892,100. As such, Staff presented options to the City Council to fund other possible priorities utilizing the unallocated balance. Subsequently, the City Council approved the Staff’s recommendation to transfer any unallocated balance to the CIP Fund. Following the Budget Workshop, Staff received additional information which led to an upward revision of revenue projections as well as a slight increase in expenditures. Below is a summary of the proposed modifications of $143,200 or 0.4% in revenues and $320,000 or 1% in expenditures: • Revenues o Increase $143,200 (Property Tax and TOT) • Expenditures (net increase of $6,800) o Decrease $107,200 for Non-Personnel o Increase $114,000 for Personnel • Transfers-Out o Increase $313,200 for Transfers-Out 9 Overall, if the above proposed changes are approved by the City Council tonight, Staff projects that the FY 2023-24 operating revenues are approximately $38.5 million (before transfers-in) and operating expenditures of $33.5 million (before transfers-out). As illustrated in Table 4 below Staff estimates a structural surplus of over $5 million, before transfers-out. After applying the transfers and one -time expenditures, the General Fund is estimated to have an unallocated balance of $715,300 on June 30, 2024. Table 4: General Fund Revenues and Expenditures Summary The updated unallocated balance is $176,800 or 20% less than the surplus of $892,100 that was reported at the budget workshop. A detailed explanation of the changes for the FY 2023-24 Proposed General Fund Budget to the Preliminary General Fund Budget is provided below. FY 2023-24 Revenues Preliminary Budget Changes Since the Budget Workshop, Staff has received additional information and updated the revenue projections for FY 2023-24. General Fund revenues, excluding transfers, are projected to reach $38.5 million, an increase of $143,200 over earlier projections of $38.4 million. The two revenues sources that experienced material changes are outlined below. Property Tax Similar to year-end, property tax revenues will be slightly adjusted to account for the declining trend in property transfer taxes. Transfer fees are imposed by the County Recorder and occur at the time of sale when ownership is transferred. Unlike secured and unsecured property taxes, the fee revenues are remitted shortly after the actual sale. Transfer taxes make up roughly 3% of total property tax revenues and are uniquely vulnerable to changing market conditions such as sales price and volume. In the City of Rancho Palos Verdes, full value home sales have decreased by 145, or 40%, when compared to the third quarter in FY 2021-22. Due to the declining trend in sales volume, Staff recommend reducing the year-end estimate by $100,000. The FY 2022-23 property tax revenues have been slightly adjusted to account for a decline in sales volume, a lower median sales price, and the current cost to borrow funds. In FY 2023 -24, total property tax revenues are budgeted at $17.1 million, 0.6% below mid-year estimates. Property Tax General Fund Recurring One-Time Total Operating Revenues 38,489,800 35,000 38,524,800 Less: Operating Expenditures 32,710,500 803,000 33,513,500 Structural Surplus/(Deficit)5,779,300 (768,000) 5,011,300 Transfers-In - 270,000 270,000 Less: Transfers-Out 4,566,000 - 4,566,000 Unallocated Balance 1,213,300 (498,000) 715,300 10 FY 22-23 Year-End Estimate: $16,375,800 FY 23-24 Proposed Budget: $17,249,500 FY 23-24 Preliminary Budget: $17,149,500 Net Change: ($100,000) or -0.6% Transient Occupancy Tax (TOT) As noted previously, TOT revenue generated by Terranea Resort has surpassed prior year actual revenues by nearly 21% through March 2023. Increased revenues are the result of the ongoing rebound in this industry and a change in consumer sentiment related to increased spending on travel and leisure. The latest indicators suggest that growth may extend further into the year-end and slowly decelerate to moderate levels in FY 2023-24. However, the increased demand for leisure and business travel prompted Terranea to increase hotel rates in 2023. Demand has also impacted Terranea’s ability, and the necessity, to negotiate higher rates for group room reservations that are determined via contract. To account for growing revenues and maintain a conservative outlook, Terranea TOT revenues are budgeted at $6.7 million in FY 2023-24 and remain flat when compared to the FY 2022-23 year-end estimate. Compared to the proposed budget, total TOT revenues are projected to increase by about $243,000, or 3.6%, totaling $6.9 million in FY 2023-24. Transient Occupancy Tax FY 22-23 Year-End Estimate: $6,927,900 FY 23-24 Proposed Budget: $6,684,700 FY 23-24 Preliminary Budget: $6,927,900 Net Change: $243,200 or 3.6 On the next page, Table 5 is a summary of the FY 2023-24 Preliminary Budget in terms of revenue and Chart 1 is a percentage revenue allocation of each category. 11 Table 5 –General Fund Preliminary Budget – Revenues Chart 1 –Preliminary Budget - Revenue Allocation Based on the information presented above, Staff seeks City Council affirmation to increase the FY 2023-24 Preliminary Budget Revenues by approximately $143,200. Revenue Source YE Estimates at 3rd Qtr Proposed Budget Preliminary Budget Property Tax 16,375,800$ 17,249,500$ 17,149,500$ (100,000)$ -0.6% Transient Occupancy Tax 6,927,900 6,684,700 6,927,900 243,200$ 3.6% Sales Tax 2,844,400 2,855,800 2,855,800 -$ 0.0% Permits & Fees 3,425,200 3,171,500 3,171,500 -$ 0.0% Franchise Tax 2,150,000 2,200,000 2,200,000 -$ 0.0% Utility Users Tax 2,555,000 2,482,200 2,482,200 -$ 0.0% Other Taxes & Misc. Revenues 3,400,500 3,737,900 3,737,900 -$ 0.0% Subtotal 37,678,800 38,381,600 38,524,800 143,200 0.4% Transfers In 300,000 270,000 270,000 - 0.0% Total 37,978,800$ 38,651,600$ 38,794,800$ 143,200$ 0.4% FY 2022-23 Variance to Proposed Budget FY 2023-24 12 Transient Occupancy Tax 18% I Property Tax 45% 7% Permits & Fees 8% Other 22% I I Franchise Tax 6% Utility Users Tax 6% Other Taxes & Misc. Reve nues 10% ---....._ ______ ~ FY 2023-24 General Fund Expenditures Changes Since the Budget Workshop, the following section summarizes additional information on the requested increase of $320,000 or 1% from the FY 2023-24 Proposed General Fund Budget to the FY 2022-23 Preliminary General Fund Budget. Personnel Costs Personnel costs account for the salaries and benefits for City employees, including full - time, part-time, and stipend for the City Council, and Planning Commissioners. At the April 6 Budget Workshop, Staff reported that the estimated budget FY 202 3-24 for salaries is approximately $9.7 million and $3.8 million in benefits, totaling approximately $13.5 million. Since the Budget Workshop, the total proposed increase is $114,000 or 1% over the proposed budget, as follows: • On May 2, 2023, the City Council voted to implement a two-year pilot program (Community and Safety Services Division) that utilizes in-house City staff to enhance public safety services and appropriate additional funding in FY 2023- 24 for this program. As the result, the net increase in personnel for this program is $209,200, as follows: o Recreation and Parks Department personnel decreased by $111,400. This is to move the Parking Enforcement program to the City Administration. o City Administration personnel increased by $320,600 for this new program. This amount includes up to two part-time Community and Safety Service Coordinators and four part-time Community Services Liaisons. • Decrease of $95,200 (Citywide): o After the budget workshop, Staff received new information from the departments that led to a decrease in various salary and benefit line items. These revisions are now better aligned with the personnel needs in the upcoming FY 2023-24. In summary, the revised Personnel category is as follows: Personnel Costs FY 22-23 Year-End Estimate: $10,909,200 FY 23-24 Proposed Budget: $13,461,300 FY 23-24 Preliminary Budget: $13,575,300 Net Change: +$114,000 or +1% 13 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. At the April 6 Budget Workshop, Staff reported that the FY 2023-24 proposed budget is approximately $20 million. Since the Budget Workshop, Staff received supplementary information resulting in the total proposed budget to decrease by $107,000 or 1%, as follows: • The decrease of $125,000 is attributed to the estimate that the City received in April for the premium liability insurance payment. • Increase of $70,400 for services related to the Community and Safety Services Division pilot program. This amount includes trailer rental for office space, vehicle, uniform, and supplies. • The remaining reductions consist of identified savings, such as the Housing Element programs that are eligible for a grant covering a portion of the program costs. Inclusive of the changes above, the revised Non-Personnel category for FY 2023-24 Preliminary Budget is as follows: Non-Personnel Costs FY 22-23 Year-End Estimate: $19,676,700 FY 23-24 Proposed Budget: $20,045,400 FY 23-24 Preliminary Budget: $19,38,200 Net Change: -$107,200 or -0.5% As described above, Staff seeks City Council affirmation on the budget increase in Personnel for $114,000 or 1% and decrease in Non-Personnel for $107,200 or less than 1%. Transfers Out Transfers out are considered interfund transfers such as transfers to the CIP Fund, City’s Improvement Authority for Portuguese Bend and Sub -region One. At the April 6 Budget Workshop, Staff reported that the estimated FY 202 3-24 General Fund transfers-out is $4.3 million and $1.3 million from the prior year’s surplus. Based on the most current information received on TOT revenue, Staff proposes to increase the transfers-out by $243,200 or 6%. Additionally, at the end of third quarter, Staff received additional information on the scheduled maintenance projects for the Abalone Cove Sewer Fund . Based on the proposed budget of $169,800, the estimated revenues of $62,000 are not adequate to cover the estimated maintenance costs in FY 2023-24. As such, Staff recommends 14 adding a transfers-out from General Fund to the Abalone Cove Sewer Fund in the amount $70,000. This category also includes additional transfers in accordance with the pension guidelines and the City Council’s Reserve Policy No. 41. At the April 6 Budget Workshop, the City Council approved the Staff’s recommendation to transfer $889,500 to the CIP Fund for the Ladera Linda Community Center loan payment and $291,300 to the EPSF. The approved transfers are funded from the prior year’s unrestricted fund balance, and operating surplus, respectively. The breakdown below reflects the revised amount for the FY 2023-24 Preliminary Budget: Transfers-Out FY 22-23 Year-End Estimate: $7,758,800 FY 23-24 Proposed Budget: $4,252,800 FY 23-24 Preliminary Budget: $4,566,000 Net Change: +$313,200 or +7% Staff seeks City Council affirmation for the budget increases in Transfers-Out which includes $243,200 for the CIP Fund and $70,000 for the Abalone Cove Sewer Fund. In summary, after applying the proposed changes described above, the following Table 6 and Chart 2 summarize the FY 2023-24 Preliminary Budget Expenditures by category and department. Table 6: Preliminary Budget – Expenditures By Category FY 2023-24 Department FY 2022-23 Year-End Estimates Proposed Budget Preliminary Budget Variance to Proposed Budget Salaries 7,876,100 9,696,300 9,820,000 123,700 1% Benefits 3,033,100 3,765,000 3,755,300 -9,700 0% Sheriff's Contract 7,140,000 7,872,000 7,872,000 0 0% Legal Services 900,000 940,000 940,000 0 0% Supplies 583,700 693,400 693,400 0 0% Professional & Technical 3,775,000 3,984,900 4,002,700 17,800 0% Repairs & Maintenance 3,061,900 3,635,200 3,635,200 0 0% Training & Conference 288,000 414,800 414,800 0 0% Capital Outlay 1,389,000 26,000 26,000 0 0% Equipment Replacement Charges 290,900 246,900 246,900 0 0% General Liabilities Insurance 703,100 800,000 675,000 -125,000 -16% Utilities 926,400 993,400 993,400 0 0% Misc. Expense 618,700 438,800 438,800 0 0% SUBTOTAL 30,585,900 33,506,700 33,513,500 6,800 0.02% Transfers-Out 7,758,800 4,252,800 4,566,000 313,200 7% Grand Total $38,344,700 $37,759,500 $38,079,500 $320,000 1% *FY 23-24 amounts exclude approved transfers-out of $889,500 for CIP and $291,300 for Pension Employee Service Fund as these are funded from prior year’s surplus and excess reserves. 15 Chart 2: FY 2023-24 Preliminary Budget – Expenditures By Department FY 2023-24 General Fund Estimated Fund Balance Based on the adjusted revenue projections and the identified additions to the expenditures and transfers, the estimated General Fund balance on June 30, 2024, would be approximately $31.2 million. After applying the proposed changes since the budget workshop, the fund balance is projected to end the year at almost $31 million. This is a decrease of $176,800 or 1%. Additionally, after the slight increase of $3,400 in Reserve Policy of 50% based on revised expenditures, the revised unrestricted fund balance is reduced by $180,200 or 1% since the Budget Workshop. As shown on Table 7 on the next page, the General Fund is to end the year with a healthy unrestricted fund balance of over $13 million. 16 Public Safety 22% City Council 0% Finance 4% Non-Dept. 6% Transfers-Out 12% ------------------- Table 7: General Fund Estimated Fund Balance FY 2023-24 One-Time and Recurring Revenues and Expenditures After capturing the regulatory increases and new ongoing programs, the FY 2023 -24 Proposed Budget positively exceeds the requirement pursuant to the City Council Policy No. 45, Balanced Operating Budget. The City has a structurally balanced operating budget with a surplus of $5 million. Overall, as shown in Table 8 on the next page, after including all operating expenditures, one-time expenditures, and transfers, the General Fund is projected to end the year with an unallocated balance of $715,300. There are several pending items that may have a financial impact in FY 2023 -24 but at this time, there is not enough information to be included in the preliminary budget . These items include the employee collective bargaining process with the American Federation of State, County, and Municipal Employees (AFSCME), the Comprehensive Classification and Compensation Study, and the potential cost associated with the grant funds to the Palos Verdes Peninsula Land Conservancy for acacia tree removals. Therefore, Staff seek City Council affirmation to retain the unallocated balance of $715,300 rather than transferring it to the CIP Fund. General Fund FY 2022-23 Year-End Estimates (3rd Qtr.) FY 2023-24 Proposed Budget FY 2023-24 Preliminary Budget Estimated Beginning Fund Balance - 7/1/2023 30,363,100 30,267,800 30,267,800 Revenues Add: Revenues 37,678,800 38,381,600 38,524,800 143,200 0.4% Add: Transfers-In 300,000 270,000 270,000 - 0% Total Revenues 37,978,800 38,651,600 38,794,800 143,200 0% Expenditures Less: Expenditures (30,585,900) (33,506,700) (33,513,500) 6,800 0% Less: Transfers to TOT (5,040,100) (4,177,800) (4,421,000) 243,200 6% Less: Transfers to CIP - Additional (1,364,200) - - - 0% Less: Other Transfers-Out (65,000) (75,000) (145,000) 70,000 93% Less: Additional Transfers CIP Ladera (from PY unrest. FB)(889,500) - - - 0% Less: Transfers to Pension (PY Surplus)(400,000) - - - 0% Total Expenditures (38,344,700) (37,759,500) (38,079,500) 320,000 1% Estimated Ending Fund Balance - 6/30/2024 29,997,200 31,159,900 30,983,100 (176,800) -1% Transfers to City Council Restricted Fund Balance Ladera Linda Loan Payment - 889,500 889,500 - 0% UAL Payment - 291,300 291,300 - 0% 50% Reserve Policy 15,292,950 16,753,350 16,756,750 3,400 0% Total Restricted Fund Balance 15,292,950 17,934,150 17,937,550 3,400 0% Estimated Unrestricted Fund Balance - 06/30/24 14,704,250 13,225,750 13,045,550 (180,200) -1% Changes to Proposed Budget 17 Table 8 – General Fund Recurring vs. One-time Revenues and Expenditures 3. Capital Improvement Program Funds On April 12, 2023, the City Council conducted a workshop focusing on the Capital Improvement Program. Staff provided the City Council with information on the different categories of capital projects including projects that are completed, continuing, ongoing, new, and needs/wants list. The City Council approved the proposed projects for FY 2023- 24 with the following changes: • Project 8414: Added $75,000 for the Point Vicente Interpretive Center "Bubbles" Statue Marquee Sign. Revenue Type Recurring One-time Total Property Tax 17,149,500$ $ - 17,149,500$ Transient Occupancy Tax 6,927,900 - 6,927,900 Sales Tax 2,855,800 - 2,855,800 Franchise taxes 2,200,000 - 2,200,000 Utility Users Tax 2,482,200 - 2,482,200 Permits & Fees 3,171,500 - 3,171,500 Other Taxes & Misc. Revenues 3,702,900 35,000 3,737,900 TOTAL REVENUES $ 38,489,800 $ 35,000 $38,524,800 Expenditure by Program Recurring One-time Total City Council 118,900$ $ - 118,900$ City Administration 3,990,300 41,000 4,031,300 City Attorney 950,000 - 950,000 Public Safety 8,249,000 - 8,249,000 Finance 1,564,400 - 1,564,400 Community Development 3,984,600 343,000 4,327,600 Public Works 7,613,800 258,000 7,871,800 Recreation & Parks 4,061,700 11,000 4,072,700 Non-department 2,177,800 150,000 2,327,800 TOTAL EXPENDITURES $ 32,710,500 $ 803,000 $33,513,500 STRUCTURAL SURPLUS/(DEFICIT)5,779,300 (768,000) 5,011,300 Transfers in - 270,000 270,000 Transfers out 4,566,000 - 4,566,000 UNALLOCATED BALANCE 1,213,300$ (498,000)$ 715,300$ FUND 101 - GENERAL FUND FY 2023-24 RECURRING VS. ONE-TIME REVENUES AND EXPENDITURES 18 • Project 8509: Added $480,000 for the Facilities Asset Management Program. In response to the City Council’s directions regarding advancing the Hesse Park parking lot re-paving, Staff prioritized that work, moving it from later years to Fiscal Year 2023-24. The additional funding is primarily for re-paving and associated engineering, project management, and inspection; but does include re -installation of pavement markings, sidewalk repairs, and limited modifications to tree wells. • Project 8855: Changed funding source for the Roadway Asset Management Program - Palos Verdes Drive South. Changing from the CIP Fund to the Metro Grant STP-L with a total cost of $145,000. The funding for the capital improvement program is comprised of the CIP Fund and Special Revenue Funds. The CIP Fund’s main source of revenue comes from the TOT Transfers-Out from the General Fund. The other funding sources for the capital improvement program are from the City’s Special Revenues. For FY 2023-24 approved projects, the proposed funds are from the Gas Tax SB-1, Proposition C, Measure R, Measure M, CDBG Grant, American Rescue Plan Act (ARPA), Measure W, and Other Grants. Staff ensures that the Special Revenue Funds are utilized first for any qualified project before CIP Fund reserves are appropriated. Based on the direction that Staff received from the April 12 Budget Workshop, the FY 2023-24 Preliminary Budget for the capital improvement program increased by $555,000 million, from $16.4 million to $16.9 million. Table 9 below summarizes the funding allocations and Table 10 summarizes a summary list of the approved projects for FY 2023-24. Additional information on the approved projects for FY 202 3-24 funding is also captured in Attachments C, and E. Table 9: Preliminary Budget – Budget Allocations by Fund Fund Fund Name FY 2023-24 Preliminary Budget 202 Gas Tax (SB-1)1,000,000 215 Proposition C 1,050,000 220 Measure R 560,000 221 Measure M 455,000 310 CDBG 150,000 330 CIP 7,672,900 331 Federal Grant 2,479,500 333 ARPA 3,212,600 343 SCW Grant 245,000 332 STP-L Funds 145,000 TOTAL $16,970,000 19 Table 10: Preliminary Budget – Capital Improvement Program Fund Name Project Code FY 2023-24 Preliminary Budget 330-CIP Abalone Cove Sewer Rehabilitation Program 8202 200,000 215-Prop C PVDS Landslide Area Resurfacing Program 8302 1,050,000 330-CIP PVDS Landslide Area Resurfacing Program 8302 320,000 330-CIP Portuguese Bend Landslide Remediation 8304 710,000 331-Federal Grant Portuguese Bend Landslide Remediation 8304 500,000 330-CIP PV Nature Preserve Signs Program 8420 30,000 330-CIP Point Vicente Interpretive Center "Bubbles" Statue Marquee Sign 8417 75,000 330-CIP Park Playground Improvements 8426 115,000 330-CIP New Civic Center Complex 8503 1,025,000 330-CIP Restroom Improvements at PVIC 8508 380,000 333-ARPA Restroom Improvements at PVIC 8508 350,000 330-CIP Facilities Asset Management Program 8509 825,000 330-CIP Storm Drain Asset Mgmt Program & Master Plan Update 8701 500,000 330-CIP Stormwater Drainage Improvements PVDS at Peppertree Dr.8715 760,500 331-Federal Grant Stormwater Drainage Improvements PVDS at Peppertree Dr.8715 1,939,500 343-SCW Grant Multi-Jurisdictional Stormwater Treatment - Torrance Airport 8721 245,000 330-CIP Storm Drain Outlet Improvements at Ocean Crest Drive 8722 115,000 330-CIP Storm Drain Improvements at Peacock Ridge Road 8723 325,000 220-MR Roadway Asset Management Program - Crenshaw Blvd.8808 175,000 333-ARPA Roadway Asset Management Program - Crenshaw Blvd.8808 500,000 221-MM Grant Western Avenue Traffic Flow Improvements 8809 455,000 310-CDBG ADA Infrastructure Improvements 8810 150,000 330-CIP Western Avenue Beautification (long term)8840 537,400 333-ARPA Western Avenue Beautification (long term)8840 2,362,600 330-CIP Traffic Calming Program - Citywide 8846 200,000 220-MR Traffic Calming Program - Citywide 8846 385,000 331-Federal Grant Guardrail Improvements along PVDE 8847 40,000 330-CIP Retaining Wall at 3001 Crest Road 8853 330,000 STP-L Funds Roadway Asset Management Program - PVDS 8855 145,000 202-Gas Tax (SB1) Roadway Asset Management Program - Residential Streets 8856 1,000,000 330-CIP Roadway Asset Management Program - Residential Streets 8856 1,225,000 TOTAL $16,970,000 20 FY 2023-24 Estimated Fund Balance – Capital Improvement Program Funds Overall, at the end of FY 2022-23, the Capital Improvement Program funds are estimated to receive almost $19.1 million in revenues. There are $2.2 million of estimated operating expenditures, $18 million of capital projects, and $4.6 million of committed projects. After applying the City Council Reserve Policy, the estimated Excess Reserve for all funds in the Capital Improvement Program is almost $26.4 million. Table 11 below summarizes the FY 2022-23 estimated revenues, expenditures, fund balance, and unrestricted fund balance. Table 11 – FY 2022-23 Estimated Fund Balance - Capital Improvement Program Funds Furthermore, as summarized in Table 12, at the end of FY 2023-24, the Capital Improvement Program funds are estimated to receive $13.4 million in revenues. There are almost $3 million of estimated operating expenditures, $16.9 million of capital projects, and $4.6 million of carryover capital projects. After applying the City Council Reserve Policy, the estimated Excess Reserve for all funds in the Capital Improvement Program is $23.6 million. Table 11 below summarizes the FY 202 3-24 estimated revenues, expenditures, fund balance, and unrestricted fund balance. Table 12 –Estimated Fund Balance - Capital Improvement Program Funds Special Revenues The City’s Special Revenues are taxes and other revenues set aside for a specific or restricted purpose. The City’s major special revenue funds are the Gas Tax, Proposition A, ARPA, Proposition C, Measure R, Measure M, Measure A, 1911 Act Street Lighting, 21 CIP Fund ARPA Gas Tax Measure R Others Total ~ginning Fund Ba lance -7/1/2022 38,115,03 0 (29,997) 1,521,979 1,813,351 2,566,821 43,987,184 Reven ues 8,514,634 5,138,584 2,040,296 693,544 2,710,403 19,097,461 Opera ting Expendi tures . . 980,100 . 1,183,500 2,163,600 Capita l Projects 11,965,709 3,026,128 348,789 210,848 2,489,703 18,041,177 Est imated Ending Fund Balance -6/30/2023 34,663,955 2,082,459 2,233,386 2,296,047 1,604,021 42,879,868 Restricte d by Counci l 5,000,000 1,105,654 2,233,386 2,261,770 1,282,778 11,883,588 Commi tted 3,308,278 976 ,805 -34,277 32 1,243 4,640 ,603 Unrestricted 26,355,677 . . . . 26,355,677 CIP Fund ARPA Gas Tax Measure R Others Total Estimated Beg inning Fu nd Ba lance • 7/1/20 23 34,663 ,955 2,082,459 2,233 ,386 2,296 ,047 1,604,021 42 ,879 ,868 Reven ues 4,923,000 83,000 2,263,700 772,300 5,3 77 ,600 13,419 ,600 Opera ting Ex pendi tures . 1,585 ,900 12 5,000 1,264,700 2,975,600 Capi tal Projects 7,672,900 3,212,600 1,000,000 560,000 4,524,500 16,970,000 Capi tal Projects -Carryover 3,308,278 976,805 -34,277 32 1,243 4,640,603 Projected End ing Fund Balance -6/30/2024 28,605,777 (2,023,946) 1,911,186 2,349,070 871,178 31,713,265 Restricte d by Counci l 5,000,000 (2,023,946) 1,911,186 2,349,070 871,178 8,107,488 Commi tte d ----- Unrestricted 23,605,777 . . . . 23,605,777 and other grants. In addition to funding the CIP projects, a few other Special Revenues are also designated for operating expenditures such as street maintenance, public facility upgrades and maintenance, public right -of-way maintenance, park upgrades, park maintenance, and transit related expenses. Table 13 below is a summary of the estimated FY 2023-24 fund balance of $8.1 million for the Other Special Revenue Funds not utilized for Capital Improvement Programs. Table 13 – FY 2023-24 Estimated Fund Balance – Special Revenue Funds Internal Service Funds The City uses an Internal Service Fund (ISF) as an accounting mechanism to accumulate and allocate costs internally among the City’s various functions. The City uses the Equipment Replacement Fund (ERF) to account for its fleet of vehicles, computer systems, furniture, and equipment, and the EPSF to account for employee pension service costs, as described below. The funding and uses for the ISF is typically from the General Fund and restricted by the City Council. In accordance with the pension guidelines for transparency, during the fiscal year, Staff maintains the separate tracking of the fund’s financial transactions in the EPSF. At the end of the fiscal year, in compliance with accounting and audit requirements for the City’s ACFR presentation, this amount is included in the General Fund’s fund balance as part of the year-end closing process. Equipment Replacement Fund The ERF is an internal service fund that is used to accumulate funding to replace City equipment, furniture, and vehicles at the end of the designated life cycle. The equipment replacement charges are General Fund expenditures for all departments and the s ame amounts are then recorded as revenues in the ERF. Special Revenue Funds Estimated Beginning Fund Balance - 7/1/2023 $7,367,808 Add: Revenues 2,661,870 Add: Transfers-In from General Fund 70,000 Total Revenues 2,731,870 Less: Expenditures (1,709,227) Less: Transfers-Out (270,000) Total Expenditures (1,979,227) Estimated Ending Fund Balance - 6/30/2024 8,120,451 Restricted by City Council Policy - Estimated Restricted Fund Balance - 06/30/2024 $8,120,451 22 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 that are due to be replaced in the City’s next fiscal year. Staff estimates that the ERF will continue to have excess reserves by the end of FY 202 3-24. Therefore, Staff recommends annual charges of $246,900 to meet the minimum reserve of 75% instead of 100% of estimated replacement costs. The same amount is recorded as revenues in ERF plus estimated interest earnings of $3 8,000. For expenditures, the estimated amount is approximately $621,000 or 22% of the replacement value. As with 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, 2024, is almost $2.7 million and after applying the $2.1 million City Council policy reserves, the ERF is estimated to end the year with an excess reserve of approximately $561,300 as illustrated in Table 14. Employee Pension Service Fund (EPSF) On February 2, 2021, the City Council approved the CalPERS Pension Plan Guidelines which provides a financial plan to address the City’s outstanding pension liability and CalPERS’ continuous change in valuation methodology. Based on City Council’s discretion, the goal is to transfer funds to the EPSF of at least 10%, but no more than 25%, of the annual General Fund surplus (revenues minus expenditures, including transfers). As a result, the accumulated funds in the EPSF would then relieve the General Fund of payment more than $900,000 of the City’s Unfunded Accrued Liability (UAL). At the April 6 Budget Workshop, the City Council approved the Staff’s recommendation of FY 2023-24 transfers-in of $291,300 from General Fund, $9,700 of interest earning, and expenditures of $135,700 for the increases in the benefits category. At the end of FY 2023-24, the EPSF fund balance is estimated at almost $1 million. In summary, Table 14 below includes the estimated FY 2023-24 fund balance for Internal Service Funds. Table 14 – FY 2023-24 Estimated Fund Balance – Internal Service Fund Equipment Replacement Fund Employee Pension Service Fund TOTAL Estimated Beginning Fund Balance - 7/1/2023 $ 3,002,584 $ 792,608 $ 3,795,192 Add: Revenues 284,900 - 284,900 Add: Transfers-In from General Fund - 301,000 301,000 Total Revenues 284,900 301,000 585,900 Less: Expenditures (621,000) (135,700) (756,700) Less: Transfers-Out - - - Total Expenditures (621,000) (135,700) (756,700) Estimated Ending Fund Balance - 6/30/2024 2,666,484 957,908 3,624,392 Restricted by City Council Policy (2,105,195) (957,908) (3,063,103) Estimated Excess/(Deficit) Reserve - 06/30/2024 $561,290 - $561,290 23 Based on the information presented above, Staff seeks City Council affirmation for the FY 2023-24 Preliminary Budget for the revised Capital Improvement Program list, CIP Funds, Special Revenue Funds, and Internal Service Funds. Finally, direct Staff to return on June 20 for the budget hearing and budget adoption. 4. Options for Reserving Funds for Major Capital Improvements At the April 12 CIP workshop, Councilmember Alegria asked for a projected fund balance of the CIP Fund based on the 5-year CIP. Staff were not prepared to provide the projected fund balance at that time. Hence, Staff is now taking this opportunity to provide the City Council with the projected fund balance for the CIP Fund based on the preliminary 5-year CIP. Table 15 – Projected 5-Year Fund Balance for CIP Fund Based on the preliminary 5-year CIP presented in Table 15, the CIP Fund will not have enough fund balance beginning FY 2026 -27 to meet the $5 million City Council Reserve Policy. This is with the assumption that all budgeted capital projects and carryover projects are fully spent each year. However, over the past five years, the CIP Fund’s historical trend has demonstrated a spending rate of just over 30%, as shown in Table 16. Table 16 – CIP Fund Average Spending Rate *FY 2022-23 is based on year-end estimates. However, for a more realistic fund balance projection, Staff applied a blended spend rate of 50% for carryover capital projects and the proposed capital projects in the preliminary 5-year CIP. Accordingly, the CIP Fund is projected to have an ending fund balance of FY 2022-23 FY 2021-22 FY 2020-21 FY 2019-20 FY 2018-19 Average Adopted Budget 9,283,000 2,945,000 2,521,000 9,917,000 7,105,100 6,354,220 Carryover/Additional Appropriation 14,279,203 12,461,065 895,944 3,095,768 1,319,051 6,410,206 Revised Budget 23,562,203 15,406,065 3,416,944 13,012,768 8,424,151 12,764,426 Actuals 11,855,709 674,797 875,441 4,652,908 3,291,424 4,270,056 % Spent to total budget 50.32% 4.38% 25.62% 35.76% 39.07% 31.03% 24 FY2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Fun d Ba lance c----34,700,000 29,489,500 24,300,000 16,210,500 4,721,000 Revenues 6,679,000 4,200,000 3,900,000 3,600,000 3,315,033 Carryover from prior year (3,300,000) Ladera Lin da Loa n Payment (889,500 (889,500) (889,50 0) (889,500 ' (889,500) Cap it al Projects (7,700,000) (8,500,000) (11,100,0 00) (14,2 00 ,000) (6,800,000) Projected Ending Fund Ba l ance 29,489,500 24,300,000 1 6,210,500 4,721,000 346,533 :R estricted by City Co unc il Po licy (5,0 00,000) (5,000,000) (5,000,000) Unrestricted Fund Balance 24,489,500 19,300,000 11,210,500 approximately $17 million in FY 2027-28. After applying the $5 million reserve, CIP Fund has almost $12 million in unrestricted fund balance. Table 17 – Revised Fund Balance for CIP Fund Furthermore, in addition to the projected fund balance provided above, on April 12, the City Council directed Staff to return with potential options for setting aside funds towards major projects such as the Civic Center Master Plan and Portuguese Bend Landslide Remediation projects. As such, considering the use of blended rate of 50% Staff applied for carryover capital projects and the proposed capital projects in the preliminary 5 -year CIP, the City Council may consider the following options: • Option 1 (existing): o Pursuant to City Council Policy No. 41 Reserve Policy, the City will maintain a minimum CIP reserve of $5 million for major improvements related to roadways, storm drains, parks, building, rights-of-way, and the sewer system. As such, the City Council has the discretion to specifically assign a portion or all of the $5 million for the Civic Center Master Plan and/or Portuguese Bend Landslide Remediation projects. o In accordance with the City’s accounting policies, assigning the funds means that the City Council intends to use the funds for a specific purpose, which is expressed by the City Council via minute order. o This option does not create a fund that grows in balance year-after-year. o If this option is approved by the City Council, Staff will incorporate the changes during the June 20 budget hearing and budget adoption. • Option 2: o Subject to the annual budgeting process, the City Council may consider increasing the reserve amount of $5 million to $10 million. The impact on this option will reduce the projected unrestricted fund balance listed Table 16, with revised projection unrestricted fund balance of almost $7 million by FY 2027-28. This change will require a revision to increase reserves from $5 million to $10 million in the City Council Policy No. 41 Reserve Policy. o This alternative will be contingent on the unrestricted fund balance in CIP. o This option does not create a fund that grows in balance year-after-year. o If this option is approved by the City Council, Staff will come back at a future meeting for the approval of the policy revisions. 25 FY 2023-24 FY 2024-25 FY2025-26 FY2026 ~27 FY2027 -28 Beg inn ing Fu nd Ba la nce 34,70 0,000 34,100,000 3 0 ,410,500 27,121,000 20,331,500 Rev e nues 5,789,500 4,200,000 3,900,000 3,600,000 3,3 15,033 Lade ra Li nda Loan Payment (889,500) {889,500) (889,500) (889,500) (889,500) Cap ital Proj ects (5,5 00,000) (7 ,000,000) (6,300,000) (9,500,000) (5,800,000) Projected Ending Fund Ba 'lance 34,100,000 30,410,500 2.7,121,000 20,331,500 16,957,033 Restricted by City Counci l Po licy (5,0 00,000) (5,000,000) (5,000,000) (5,0 00,000) (5,0 00,000) Unrestricted Fund Ba lance 29,100,000 25,410,500 22,121,000 15,331,500 11,957,033 • Option 3: o Subject to the annual budgeting process, the City Council may consider transferring a portion or all of the $5 million in a separate fund for the Civic Center Master Plan and/or Portuguese Bend Landslide Remediation projects. o This option may accrue funds on a yearly basis, pending approval through the annual budgeting process. o If this option is approved by the City Council, Staff will incorporate the changes during the June 20 budget hearing and budget adoption. • Option 4: o Direct Staff to present the options to the Finance Advisory Committee and solicit feedback and recommendations that the City Council may consider at a future meeting. ADDITIONAL INFORMATION: Employee Pension Guidelines On September 8, 2022, results from the Actuarial Valuation Report (AVR) ending June 30, 2021 were presented to the Finance Advisory Committee (FAC) as specified under item number 3 of the FY 2022-23 Work Plan. The result of this discussion led to the formation of an Ad-Hoc Subcommittee mainly reviewing the existing pension guidelines and examining additional payment strategies to mitigate future impacts to the City’s Unfunded Accrued Liability (UAL). A separate staff report on FAC’s recommendations will be presented to the City Council for its review and consideration in July. American Rescue Plan Act (ARPA) Update The second compliance report required by the U.S. Department of the Treasury was submitted in April 2023. Table 18 below is a summary of the expenditure status report for the ARPA projects with obligated funds and expenditures as of March 2023. Staff is committed to ensuring that all funds are expended before ARPA’s deadline of December 31, 2026. Table 18 – ARPA Status Report Expenditure Category Approved ARPA Allocation Cumulative Expenditures & Encumbrance 03/30/23 % Expended & Encumbered 03/30/23 Balance Investment in Capital Infrastructure 9,143,960 4,757,403 52%4,386,557 Investment in Information Technology 520,000 202,820 39%317,180 Investment in Public Safety 325,000 0 0%325,000 Grand Total $9,988,960 $4,960,223 50%$5,028,737 26 Review of Utility Users Tax (UUT) The UUT continues to be a necessary revenue source that supports the City’s operating needs. At the Budget Workshop in April, the City Council approved continuing the 3% rate for UUT. Based on changes since the Budget Workshop, the FY 2022-23 year-end estimates increased by almost $123,000 to $2.6 million, or by 5%. There were no material changes to the Proposed Budget, therefore, UUT revenues total approximately $2.5 million and account for 6% of the total General Fund revenues in FY 2023-24. Review of the Golf Tax According to the Rancho Palos Verdes Municipal Code Section 3.40.140, a legislative review of the Golf Tax is required every four years and must be completed prior to adopting the budget prepared for the corresponding next fiscal year. On April 6, 2023, the City Council upheld the Golf Tax rate of 10% for FY 2023-24. 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 2023-24 Golf Tax revenue is $0.7 million. Accordingly, the next review will be in 2027 during the FY 2027-28 budget process. CONCLUSION: After the Budget Workshop, Staff estimates the General Fund will continue to end FY 2023-24 with revenues ($38.8 million) exceeding expenditures ($38.1 million) by $715,000. The City Council can consider utilizing this amount in FY 2023-24 once more information regarding pending matters and their fiscal impact becomes available as described earlier in this staff report. After including the transfers and 50% reserves pursuant to the City Council’s reserve policy, the General Fund is projected to end FY 2023-24 with a healthy Unrestricted Fund Balance of $13 million. The CIP Fund FY 2023-24 preliminary budget includes $4.9 million in revenues and expenditures for capital projects of $7.7 million and carryover projects of $3.3 million. As such, the CIP Fund balance is estimated at almost $28.6 million. After applying the $5 million City Council’s reserve policy, the estimated Excess Reserve for CIP is almost $23.6 million. The Special Revenues Funds and Internal Service Funds are also estimated to end FY 2023-24 with stable fund balances. The Special Revenue Funds are estimated to end the year at approximately $8.1 of restricted fund balance and the Internal Service Funds are estimated to end the year at $561,300, net of City Council’s reserve policy. Staff seeks City Council acceptance of the FY 2023-24 Preliminary Budget consisting of the General Fund, CIP, and Special Revenues, and Internal Service Funds. Any direction from the City Council based on the figures presented in this report will be incorporated in the FY 2023-24 Draft Budget that Staff will present at a duly noticed public hearing to be held by the City Council on June 20, 2023. 27 ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Provide Staff with further direction for consideration at the budget public hearing on June 20, 2023. 2. Discuss and take other action related to this item. 28 Proposed Budget Adjustments Fiscal Year 2022-23 Account Type Department Fund Account Object Code Justification FY 2022-23 Proposed Budget Adjustments Personnel Salaries and Benefits City Administration, Community Development, Public Works, Recreation and Parks General Fund 4101 - 4105 4201 - 4207 Decresae line items for unspent budget from City-wide vacancies.(1,805,600)$ Total - Personnel (1,805,600)$ Transfers-Out Transfers-Out Transfers to CIP General Fund CIP 101-400-0000-9330 330-300-0000-9101 Increase tarnasfers to CIP based on year- end estimates for TOT. 1,169,900 Total - Tranfers-Out 1,169,900$ Total Proposed Budget Adjustments - General Fund (635,700)$ A-1 FY 2023-24 PRELIMINARY BUDGET Statement of Revenues - All Funds Account Object FY 2019-20 Actual FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Revised Budget FY 2022-23 YE Estimate FY 2023-24 Preliminary Budget Fund: 101 - GENERAL FUND (29,224,007) (30,160,582) (35,911,443) (35,737,000) (37,678,800) (38,524,800) 101-300-0000-3101 3101 - GOLF TAXES (394,765) (632,886) (733,545) (540,000) (698,200) (720,120) 101-300-0000-3102 3102 - PROPERTY TAXES - SECURED (8,576,363) (9,072,028) (9,392,563) (10,008,800) (9,997,900) (10,474,100) 101-300-0000-3107 3107 - PROPERTY TAXES - IN LIEU OF (5,150,914) (5,384,633) (5,565,565) (5,848,000) (5,892,900) (6,173,400) 101-300-0000-3108 3108 - PROPERTY TAXES - RPTTF RDA (55,594) (54,130) (48,336) (50,000) (50,000) (52,000) 101-300-0000-3110 3110 - PROPERTY TRANSFER TAXES (401,021) (570,712) (735,378) (500,000) (435,000) (450,000) 101-300-0000-3111 3111 - FRANCHISE TAXES (2,146,037) (2,203,130) (2,278,003) (2,150,000) (2,150,000) (2,200,000) 101-300-0000-3112 3112 - SALES TAXES (2,079,675) (1,829,019) (2,679,211) (2,603,500) (2,748,000) (2,759,000) 101-300-0000-3113 3113 - SALES TAXES - PW (PSAF)(83,667) (90,313) (103,232) (83,700) (96,400) (96,800) 101-300-0000-3114 3114 - UTILITY USERS TAXES - ELEC.(874,220) (1,042,287) (1,074,936) (940,500) (1,125,000) (1,194,600) 101-300-0000-3115 3115 - UTILITY USERS TAXES - WATER (683,230) (824,882) (1,007,202) (855,000) (835,000) (847,000) 101-300-0000-3116 3116 - UTILITY USERS TAXES - GAS (354,920) (378,656) (443,854) (405,700) (595,000) (440,600) 101-300-0000-3120 3120 - TRANSIENT OCC. TAXES - MISC (144,747) (145,816) (223,617) (220,000) (227,900) (227,900) 101-300-0000-3121 3121 - TRANSIENT OCC. TAXES-TERRANEA (3,765,052) (2,969,619) (5,946,515) (5,530,100) (6,700,000) (6,700,000) 101-300-0000-3202 3202 - BUILDING & SAFETY PERMITS (954,408) (1,050,030) (1,862,181) (1,710,000) (2,070,600) (1,850,000) 101-300-0000-3203 3203 - PLAN CHECK PERMITS (335,342) (307,328) (538,280) (503,500) (503,500) (500,000) 101-300-0000-3205 3205 - FILM PERMITS (20,081) (2,671) (42,972) (28,500) (19,900) (21,000) 101-300-0000-3206 3206 - ANIMAL LICENSES (26,734) (28,803) (26,944) (27,400) (21,100) (25,200) 101-300-0000-3207 3207 - BUILDING & SAFETY SMIP (977) 362 (365) (2,800) (400) (800) 101-300-0000-3208 3208 - BUILDING & SAFETY ADMIN FEES (559) 53 (299) (1,000) (400) (1,000) 101-300-0000-3209 3209 - GEOLOGY PERMITS (124,614) (152,099) (240,065) (223,300) (200,000) (210,000) 101-300-0000-3210 3210 - BUSINESS LICENSE TAXES (896,166) (675,299) (730,966) (680,000) (689,800) (700,000) 101-300-0000-3212 3212 - BUSINESS LICENSE PENALTY (20,505) (6,184) (18,227) (13,000) (12,700) (12,500) 101-300-0000-3213 3213 - PARKING PERMITS-OVERSIZED VEH.(628) (375) (88) (200) (400) (400) 101-300-0000-3214 3214 - PARKING PERMIT DECALS (590) (594) (594) (600) (500) (600) 101-300-0000-3215 3215 - PLANNING & ZONING PERMITS (330,124) (362,786) (481,031) (460,800) (420,000) (425,000) 101-300-0000-3217 3217 - VIEW RESTORATION PERMITS (5,106) (15,318) (5,106) (9,700) (5,400) (5,700) 101-300-0000-3218 3218 - PLANNING MISC. PERMITS (7,848) (8,622) (9,509) (7,600) - 101-300-0000-3219 3219 - ROW - MISC PERMITS (106,186) (76,205) (128,589) (99,800) (180,000) (128,800) 101-300-0000-3220 3220 - ROW - DUMPSTER PERMITS (3,626) (3,038) (2,304) (2,400) (3,000) (3,000) 101-300-0000-3501 3501 - TOW FEES (5,976) (5,229) (4,067) (5,800) (4,400) (4,400) 101-300-0000-3502 3502 - FALSE ALARM (11,250) (7,400) (8,500) (4,800) 101-300-0000-3503 3503 - TRAFFIC TICKETS (95,301) (199,353) (188,739) (112,000) (143,000) (153,000) 101-300-0000-3601 3601 - INTEREST EARNINGS (358,232) (186,670) (398,318) (192,000) (321,300) (314,000) 101-300-0000-3602 3602 - RENTAL/LEASES (158,929) (356,613) (437,712) (325,000) (435,200) (441,600) 101-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 651,176 - 101-300-0000-3801 3801 - ADMINISTRATIVE OVERHEAD (149,507) (99,507) (100,014) (155,700) (93,200) (100,000) 101-300-0000-3901 3901 - DONATIONS (1,500) 101-300-0000-3902 3902 - CASP FEES (5,635) (5,360) (6,970) (4,500) (5,000) (5,000) 101-300-0000-3904 3904 - RDA LOAN REPAYMENT (114,494) (239,062) (123,520) (283,800) (227,000) (264,680) 101-300-0000-3908 3908 - RDA ADMINISTRATIVE FEES (8,000) - 101-300-0000-3999 3999 - MISCELLANEOUS REVENUE (184,904) (144,968) (191,503) (260,000) (162,800) (174,500) 101-300-1430-3999 3999 - MISCELLANEOUS REVENUE (1,360) (80) (160) (1,000) (500) (500) 101-300-4140-3504 3504 - CODE ENFORCEMENT CITATIONS (15,338) (46,053) (42,906) (18,000) (6,000) (15,000) 101-300-5120-3412 3412 - PROGRAM/EVENT FEES (5,723) (1,840) (6,165) (4,000) (4,000) (4,000) 101-300-5120-3602 3602 - RENTAL/LEASES (5,173) (2,190) (739) (2,600) (2,600) (2,600) 101-300-5122-3411 3411 - PARKING LOT FEES (29,626) (30,000) (20,000) (20,000) 101-300-5123-3506 3506 - PRESERVE PARK CITATIONS (200) (100) - 101-300-5130-3602 3602 - RENTAL/LEASES (30,436) (960) (20,212) (30,000) (27,000) (32,000) 101-300-5131-3412 3412 - PROGRAM/EVENT FEES (42,642) (16,060) (125,769) (93,400) (140,000) (200,000) 101-300-5140-3602 3602 - RENTAL/LEASES (9,181) (6,339) (6,825) (6,500) (7,500) (9,000) 101-300-5150-3602 3602 - RENTAL/LEASES (2,593) 360 - (15,000) 101-300-5160-3411 3411 - PARKING LOT FEES (237,209) (417,037) (243,699) (230,000) (130,000) (230,000) 101-300-5170-3412 3412 - PROGRAM/EVENT FEES (19,167) (40,000) (10,000) (30,000) 101-300-5170-3901 3901 - DONATIONS (100) (1,000) (26,100) (30,000) (21,000) (25,000) 101-300-5180-3602 3602 - RENTAL/LEASES (141,694) (141,640) (150,000) (105,000) (130,000) 101-300-5180-3701 3701 - PVIC SALES TAXABLE (92,494) (12,840) (104,463) (120,000) (120,000) (120,000) 101-300-5180-3901 3901 - DONATIONS (8,423) (1,875) (10,002) (8,000) (4,000) (8,000) 101-300-5190-3412 3412 - PROGRAM/EVENT FEES (2,772) (2,676) (2,500) (8,300) (5,000) 101-300-5190-3901 3901 - DONATIONS (942) (2,050) (1,500) (2,000) (2,000) 101-300-5416-3504 3504 - CODE ENFORCEMENT CITATIONS (120,000) 101-300-9101-3301 3301 - FEDERAL GRANTS (515,258) Fund: 101 - GENERAL FUND TRANSFERS IN (275,000) (130,000) (310,000) (300,000) (300,000) (270,000) 101-300-0000-9217 9217 - TRANSFER - PUBLIC SAFETY (175,000) (130,000) (160,000) (250,000) (250,000) (170,000) 101-300-0000-9224 9224 - TRANSFER - MEASURE A MAINT (100,000) (150,000) (50,000) (50,000) (100,000) TOTAL GENERAL FUND (29,499,007) (30,290,582) (36,221,443) (36,037,000) (37,978,800) (38,794,800) B-1 FY 2023-24 PRELIMINARY BUDGET Statement of Revenues - All Funds Account Object FY 2019-20 Actual FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Revised Budget FY 2022-23 YE Estimate FY 2023-24 Preliminary Budget Fund: 202 - GAS TAX (1,726,895) (1,687,873) (1,910,859) (2,160,700) (2,040,296) (2,263,700) 202-300-0000-3304 3304 - STATE GRANTS - SECTION 2103 (293,467) (278,418) (362,089) (410,100) (363,300) (419,400) 202-300-0000-3305 3305 - STATE GRANTS - SECTION 2105 (217,102) (212,605) (251,253) (268,700) (255,400) (277,700) 202-300-0000-3306 3306 - STATE GRANTS - SECTION 2106 (127,927) (123,979) (149,037) (154,300) (149,300) (162,200) 202-300-0000-3307 3307 - STATE GRANTS - SECTION 2107 (274,133) (287,691) (303,860) (367,000) (305,900) (333,600) 202-300-0000-3308 3308 - STATE GRANTS - SECTION 2107.5 (6,000) (6,000) (12,000) (6,000) (6,000) (6,000) 202-300-0000-3309 3309 - STATE GAS TAX - SB1 (737,134) (773,632) (842,374) (949,200) (918,000) (1,046,300) 202-300-0000-3601 3601 - INTEREST EARNINGS (21,853) (5,548) (15,232) (5,400) (17,410) (18,500) 202-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 24,986 (24,986) 202-300-0000-3999 3999 - MISCELLANEOUS REVENUE (49,279) Fund: 203 - 1972 ACT LANDSCAPE/LIGHT $(501)$(240)$203 $(200)$(944)$(300) 203-300-0000-3601 3601 - INTEREST EARNINGS (501) (240) (391) (200) (350) (300) 203-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 594 (594) Fund: 209 - EL PRADO LIGHTING DISTRICT $(3,479)$(3,283)$(2,827)$(200)$(4,664)$(3,880) 209-300-0000-3102 3102 - PROPERTY TAXES - SECURED (2,882) (2,971) (3,132) (3,300) (3,380) 209-300-0000-3601 3601 - INTEREST EARNINGS (597) (312) (559) (200) (500) (500) 209-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 864 (864) Fund: 211 - 1911 ACT STREET LIGHTING $(958,138)$(782,857)$(889,362)$(808,000)$(791,710)$(776,200) 211-300-0000-3102 3102 - PROPERTY TAXES - SECURED (725,690) (769,945) (806,016) (795,000) (729,500) (751,300) 211-300-0000-3601 3601 - INTEREST EARNINGS (24,346) (12,912) (23,793) (13,000) (23,450) (24,900) 211-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 38,760 (38,760) 211-300-0000-3999 3999 - MISCELLANEOUS REVENUE (208,102) (98,313) Fund: 213 - WASTE REDUCTION $(224,465)$(206,789)$(274,075)$(254,173)$(208,512)$(197,400) 213-300-0000-3302 3302 - STATE GRANTS (22,269) (15,952) (76,287) (6,600) 213-300-0000-3303 3303 - LOCAL GRANTS (59,573) 213-300-0000-3406 3406 - WASTE REDUCTION FEES (194,632) (187,231) (200,137) (190,000) (190,000) (192,500) 213-300-0000-3601 3601 - INTEREST EARNINGS (7,564) (3,606) (4,943) (4,600) (4,620) (4,900) 213-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 7,292 (7,292) Fund: 214 - AIR QUALITY MANAGEMENT $(55,749)$(55,700)$(38,769)$(55,500)$(58,390)$(55,600) 214-300-0000-3303 3303 - LOCAL GRANTS (53,834) (54,492) (39,723) (54,000) (54,000) (54,000) 214-300-0000-3601 3601 - INTEREST EARNINGS (1,915) (1,208) (1,896) (1,500) (1,540) (1,600) 214-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 2,850 (2,850) Fund: 215 - PROPOSITION C $(701,418)$(744,465)$(870,659)$(846,800)$(863,867)$(1,003,900) 215-300-0000-3303 3303 - LOCAL GRANTS (686,691) (710,280) (874,133) (840,600) (840,600) (994,000) 215-300-0000-3601 3601 - INTEREST EARNINGS (14,727) (8,185) (10,433) (6,200) (9,360) (9,900) 215-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 13,907 (13,907) 215-300-0000-3999 3999 - MISCELLANEOUS REVENUE (26,000) Fund: 216 - PROPOSITION A $(874,799)$(869,939)$(1,040,764)$(1,023,900)$(1,071,910)$(1,223,000) 216-300-0000-3303 3303 - LOCAL GRANTS (827,835) (856,312) (1,053,834) (1,013,400) (1,013,400) (1,198,400) 216-300-0000-3601 3601 - INTEREST EARNINGS (46,964) (13,627) (22,260) (10,500) (23,180) (24,600) 216-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 35,330 (35,330) Fund: 217 - PUBLIC SAFETY GRANTS $(158,079)$(157,786)$(160,337)$(151,200)$(169,443)$(170,100) 217-300-0000-3302 3302 - STATE GRANTS (155,948) (156,727) (161,285) (150,000) (165,200) (168,500) 217-300-0000-3601 3601 - INTEREST EARNINGS (2,131) (1,059) (1,745) (1,200) (1,550) (1,600) 217-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 2,693 (2,693) Fund: 220 - MEASURE R $(533,060)$(544,634)$(641,416)$(640,400)$(693,544)$(772,300) 220-300-0000-3303 3303 - LOCAL GRANTS (514,282) (533,448) (655,494) (630,400) (630,400) (745,500) 220-300-0000-3601 3601 - INTEREST EARNINGS (18,778) (11,186) (23,836) (10,000) (25,230) (26,800) 220-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 37,914 (37,914) Fund: 221 - MEASURE M $(580,618)$(606,661)$(737,678)$(1,316,300)$(732,737)$(852,800) 221-300-0000-3303 3303 - LOCAL GRANTS (578,741) (604,417) (741,767) (1,314,500) (714,500) (844,900) 221-300-0000-3601 3601 - INTEREST EARNINGS (1,877) (2,244) (6,628) (1,800) (7,520) (7,900) 221-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 10,717 (10,717) Fund: 222 - HABITAT RESTORATION $(18,725)$(6,092)$2,041 $(12,400)$(11,565)$(3,800) 222-300-0000-3601 3601 - INTEREST EARNINGS (15,225) (6,092) (5,884) (12,400) (3,640) (3,800) 222-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 7,925 (7,925) 222-300-0000-3999 3999 - MISCELLANEOUS REVENUE (3,500) Fund: 223 - SUBREGION ONE MAINTENANCE (48,442) (16,298) (24,905) (64,000) (73,934) (69,400) 223-300-0000-3601 3601 - INTEREST EARNINGS (13,442) (6,298) (9,929) (14,000) (8,910) (9,400) 223-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 15,024 (15,024) 223-300-0000-9101 9101 - TRANSFER - GENERAL FUND (35,000) (10,000) (30,000) (50,000) (50,000) (60,000) Fund: 224 - MEASURE A MAINTENANCE $(94,466)$(153)$(238,141)$(90,200)$(91,820)$(101,900) 224-300-0000-3303 3303 - LOCAL GRANTS (93,963) (238,099) (90,000) (90,000) (100,000) 224-300-0000-3601 3601 - INTEREST EARNINGS (503) (153) (42) (200) (1,820) (1,900) B-2 FY 2023-24 PRELIMINARY BUDGET Statement of Revenues - All Funds Account Object FY 2019-20 Actual FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Revised Budget FY 2022-23 YE Estimate FY 2023-24 Preliminary Budget Fund: 225 - ABALONE COVE SEWER DISTRICT (60,055) (54,025) (55,224) (52,000) (63,190) (131,100) 225-300-0000-3102 3102 - PROPERTY TAXES - SECURED (52,379) (51,980) (56,176) (50,000) (58,500) (59,600) 225-300-0000-3601 3601 - INTEREST EARNINGS (7,676) (2,045) (2,318) (2,000) (1,420) (1,500) 225-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 3,270 (3,270) 225-300-0000-9101 9101 - TRANSFER - GENERAL FUND (70,000) Fund: 228 - DONOR RESTRICTED CONTRIBUTION $(23,560)$(23,195)$(28,713)$(43,300)$(70,862)$(46,900) 228-300-0000-3601 3601 - INTEREST EARNINGS (13,660) (6,495) (10,650) (25,000) (10,000) (10,600) 228-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 16,262 (16,262) 228-300-5411-3901 3901 - DONATIONS (7,500) (10,500) (31,000) (12,000) (38,000) (30,000) 228-300-5414-3901 3901 - DONATIONS (2,000) (6,000) (3,000) (6,000) (6,000) (6,000) 228-300-5415-3901 3901 - DONATIONS (400) (200) (300) (300) (600) (300) 228-300-5417-3901 3901 - DONATIONS (25) Fund: 310 - CDBG $(226,364)$(28,564)$(156,633)$(60,000)$(351,230)$(150,000) 310-300-0000-3301 3301 - FEDERAL GRANTS (226,364) (25,556) (153,987) (60,000) (350,000) (150,000) 310-300-3110-3301 3301 - FEDERAL GRANTS (3,008) (2,646) (1,230) Fund: 330 - CAPITAL INFRASTRUCTURES PROJEC (2,980,525) (1,935,958) (4,398,776) (6,323,900) (8,514,634) (4,923,000) 330-300-0000-3301 3301 - FEDERAL GRANTS 330-300-0000-3601 3601 - INTEREST EARNINGS (471,473) (214,382) (447,965) (200,000) (472,130) (502,000) 330-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 748,704 (748,704) 330-300-0000-3999 3999 - MISCELLANEOUS REVENUE (757) 330-300-0000-9101 9101 - TRANSFER - GENERAL FUND (2,410,752) (1,720,819) (4,699,515) (6,123,900) (7,293,800) (4,421,000) 330-300-0000-9331 9331 - TRANSFER - FEDERAL GRANTS (98,300) Fund: 331 - FEDERAL GRANTS - - - (1,104,000) - - 331-300-0000-3301 3301 - FEDERAL GRANTS (1,104,000) Fund: 332 - STATE GRANTS $(626,179)$(44,850)$(241,562)$(100)$(1,669,550)$(690) 332-300-0000-3302 3302 - STATE GRANTS (450,162) (7,264) (241,441) (1,668,900) 332-300-0000-3601 3601 - INTEREST EARNINGS (121) (100) (650) (690) 332-300-8830-3302 3302 - STATE GRANTS (176,017) (37,586) Fund: 333 - AMERICAN RESCUE PLAN ACT (ARPA)- - (4,937,432) (4,952,600) (5,138,584) (83,000) 333-300-0000-3301 3301 - FEDERAL GRANTS (4,967,429) (4,932,600) (4,967,429) 333-300-0000-3601 3601 - INTEREST EARNINGS (63,088) (20,000) (78,070) (83,000) 333-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 93,085 (93,085) Fund: 334 - QUIMBY PARK DEVELOPMENT $(23,090)$(33,513)$4,108 $(10,000)$(22,031)$(7,600) 334-300-0000-3601 3601 - INTEREST EARNINGS (23,090) (9,861) (10,723) (10,000) (7,200) (7,600) 334-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 14,831 (14,831) 334-300-0000-3907 3907 - DEVELOPER FEES (23,652) Fund: 336 - LOW-MODERATE INCOME HOUSING $(31,861)$(61,610)$(28,845)$(31,600)$(66,293)$(39,000) 336-300-0000-3108 3108 - PROPERTY TAXES - RPTTF RDA (28,624) (59,765) (30,880) (30,000) (56,700) (35,000) 336-300-0000-3601 3601 - INTEREST EARNINGS (3,237) (1,845) (3,748) (1,600) (3,810) (4,000) 336-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 5,783 (5,783) Fund: 337 - AFFORDABLE HOUSING PROJECTS $(17,290)$(19,584)$6,007 $(4,300)$(28,161)$(11,000) 337-300-0000-3601 3601 - INTEREST EARNINGS (14,846) (7,143) (11,704) (4,300) (10,450) (11,000) 337-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 17,711 (17,711) 337-300-0000-3999 3999 - MISCELLANEOUS REVENUE (2,444) (12,441) Fund: 338 - ENVIRONMENTAL EXCISE TAX $(122,132)$(6,177)$(14,974)$(22,400)$(27,303)$(24,800) 338-300-0000-3601 3601 - INTEREST EARNINGS (7,438) (2,275) (1,999) (2,400) (1,270) (1,300) 338-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 2,633 (2,633) 338-300-0000-3907 3907 - DEVELOPER FEES (114,694) (3,902) (15,608) (20,000) (23,400) (23,500) Fund: 340 - BICYCLE/PEDESTRIAN ACCESS - $(511)$(28,038)$(110,000)$(29,100)$(48,500) 340-300-0000-3303 3303 - LOCAL GRANTS (511) (28,038) (110,000) (29,100) (48,500) Fund: 343 - MEASURE W - $(679,381)$(675,045)$(682,000)$(711,438)$(690,300) 343-300-0000-3303 3303 - LOCAL GRANTS (679,381) (681,800) (680,000) (685,400) (680,000) 343-300-0000-3601 3601 - INTEREST EARNINGS (9,543) (2,000) (9,740) (10,300) 343-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 16,298 (16,298) Fund: 681 - EQUIPMENT REPLACEMENT $(131,736)$(114,965)$(288,284)$(313,800)$(385,350)$(284,900) 681-300-0000-3601 3601 - INTEREST EARNINGS (46,686) (21,365) (37,254) (30,000) (35,780) (38,000) 681-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 57,370 (57,370) 681-300-0000-3803 3803 - EQUIPMENT REPLACEMENT CHARGES (84,600) (93,600) (308,400) (283,800) (292,200) (246,900) 681-300-0000-3999 3999 - MISCELLANEOUS REVENUE (450) Fund: 682 - EMPLOYEE PENSION PLAN - - (634,608) (400,000) (420,004) (9,700) 682-300-0000-3601 3601 - INTEREST EARNINGS (5,442) (9,170) (9,700) 682-300-0000-3606 3606 - INVESTMENT FAIR VALUE ADJUSTME 10,834 (10,834) 682-300-0000-9101 9101 - TRANSFER - GENERAL FUND (640,000) (400,000) (400,000) - TOTAL ALL OTHER FUNDS (10,221,626) (8,685,103) (18,305,567) (21,533,973) (24,311,066) (13,944,770) FY 2023-24 GRAND TOTAL REVENUE (39,720,633)$ (38,975,685)$ (54,527,010)$ (57,570,973)$ (62,289,866)$ (52,739,570)$ B-3 FY 2023-24 PRELIMINARY BUDGET Statement of Expenditures - All Funds Fund Program FY 2019-20 Actual FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Revised Budget FY 2022-23 YE Estimate FY 2023-24 Preliminary Budget Fund: 101 - GENERAL FUND 25,988,096 24,489,026 26,203,794 32,476,674 30,585,900 33,513,500 1110 - CITY COUNCIL 89,739 84,681 96,177 110,700 106,900 118,900 1210 - LEGAL SERVICES - CITY ADMIN 1,133,168 886,407 915,444 950,000 910,000 950,000 1310 - CITY CLERK ADMINISTRATION 424,365 392,362 412,802 513,100 444,500 597,600 1311 - CITY CLERK ELECTION 298,089 9,566 5,056 168,943 149,300 4,300 1410 - CITY MANAGER 645,233 628,592 733,899 838,600 789,400 1,203,500 1420 - COMMUNITY OUTREACH 63,415 82,978 75,827 73,400 49,100 89,300 1430 - EMERGENCY PREPAREDNESS 24,563 16,829 47,069 210,800 66,000 219,900 1440 - RPV TV 182,625 184,775 183,236 220,100 135,800 230,100 1450 - HUMAN RESOURCES 364,038 309,885 371,026 489,400 428,300 446,000 1470 - INFORMATION TECHNOLOGY - DATA 975,570 979,005 925,095 1,095,391 1,043,100 1,089,600 1480 - INFORMATION TECHNOLOGY - VOICE 103,792 117,369 101,672 131,000 123,500 151,000 2110 - FINANCE ADMINISTRATION 1,634,788 1,458,001 1,280,029 1,443,600 1,420,700 1,564,400 2999 - NON-DEPARTMENTAL 1,204,534 1,862,324 2,412,681 3,634,050 3,563,100 2,327,800 3110 - PUBLIC WORKS ADMINISTRATION 2,092,585 1,934,346 2,075,027 3,042,510 2,305,500 3,309,800 3120 - TRAFFIC MANAGEMENT 276,284 120,558 361,666 392,211 416,900 261,400 3130 - STORM WATER QUALITY 479,833 472,168 15,942 67,694 91,000 312,400 3140 - BUILDING MAINTENANCE 448,644 477,391 502,449 606,880 653,400 717,700 3150 - TRAILS & OPEN SPACE MAINT 421,325 306,370 407,139 414,408 456,400 481,000 3151 - PARKS MAINTENANCE 726,663 618,404 826,179 862,200 881,200 1,065,000 3160 - SEWER MAINTENANCE 42,278 22,830 13,400 35,000 35,000 75,000 3180 - STREET LANDSCAPE MAINTENANCE 147,382 232,493 346,595 724,128 702,000 782,000 3230 - FUEL MODIFICATION 1,041,109 415,389 325,086 610,400 665,300 795,000 3240 - VEHICLES MAINTENANCE 37,905 46,219 60,621 63,000 63,000 72,500 4110 - COMMUNITY DEVELOPMENT ADMIN 584,244 528,887 670,354 836,900 681,700 760,900 4120 - PLANNING 774,259 616,938 815,105 1,387,240 1,098,600 1,407,900 4130 - BUILDING & SAFETY 678,640 598,490 656,332 875,700 926,500 1,074,200 4140 - CODE ENFORCEMENT 222,319 208,263 268,139 274,600 273,800 293,300 4150 - VIEW RESTORATION 384,590 385,703 369,954 393,400 395,500 401,300 4160 - NCCP - 47,284 - - - - 4170 - GEOLOGY 111,100 144,068 163,336 150,000 160,000 160,000 4180 - ANIMAL CONTROL 102,083 94,282 150,611 288,000 210,000 230,000 5110 - RECREATION ADMINISTRATION 964,028 990,768 1,077,321 1,283,600 1,240,000 1,264,400 5120 - OTHER RECREATIONAL FACILITIES 10,251 2,569 2,009 - 2,800 115,100 5121 - EASTVIEW PARK 52,684 65,572 74,371 84,400 65,100 39,200 5122 - OPEN SPACE MANAGEMENT 198,816 179,058 203,160 259,404 144,500 478,300 5123 - PRESERVE PARK RANGERS 145,827 272,887 296,193 384,800 388,700 513,600 5130 - FRED HESSE JR. PARK 180,952 174,918 160,201 213,600 168,500 217,200 5131 - CONTRACT CLASSES 33,717 1,890 72,212 65,000 98,000 148,900 5140 - ROBERT E. RYAN PARK 81,168 109,586 103,011 120,200 110,800 78,100 5150 - LADERA LINDA COMMUNITY CENTER 67,534 74,828 100,953 58,700 62,700 233,900 5160 - ABALONE COVE SHORELINE PARK 129,636 137,950 106,752 213,100 171,000 148,700 5170 - SPECIAL EVENTS & PROGRAMS 160,550 141,020 297,916 419,300 391,700 286,000 5171 - CITY RUN SPORTS & ACTIVITIES 3,165 400 - 11,500 1,200 3,000 5172 - VOLUNTEER PROGRAM 5,322 4,700 4,927 5,000 5,000 5,000 5180 - POINT VICENTE INTER. CENTER 457,537 427,698 464,773 470,500 543,100 433,700 5190 - REACH 20,789 43,008 75,283 72,000 80,100 82,600 5210 - SUPPORT SERVICES 21,195 23,310 22,770 28,300 25,100 - 5416 - PARKING ENFORCEMENT - - 87,773 108,300 55,300 25,000 6110 - SHERIFF CONTRACT 6,683,678 6,970,901 6,985,320 7,254,000 7,140,000 7,872,000 6120 - SPECIAL PROGRAMS 651,804 263,050 307,974 521,615 493,900 377,000 9101 - EMERGENCY OPERATION CENTER 404,281 322,056 172,927 - 152,900 - Fund: 101 - GENERAL FUND TRANSFERS OUT 2,550,752 1,750,819 5,424,515 6,588,900 7,758,800 4,566,000 9223 - TRANSFER - SUBREGION 1 MAINT 35,000 10,000 30,000 50,000 50,000 60,000 9225 - TRANSFER - ABALONE COVE SEWER 70,000 9285 - TRANSFER - IA PORTUGUESE BEND 55,000 20,000 55,000 15,000 15,000 15,000 9330 - TRANSFER - INFRASTRUCTURE 2,410,752 1,720,819 4,699,515 6,123,900 7,293,800 4,421,000 9682 - TRANSFER TO EMPLOYEE PENSION FUND 640,000 400,000 400,000 - GENERAL FUND 28,538,848 26,239,845 31,628,309 39,065,574 38,344,700 38,079,500 Fund: 202 - GAS TAX 1,085,396 2,599,346 939,518 3,327,602 1,328,889 2,585,900 3120 - TRAFFIC MANAGEMENT 12,506 23,903 9,138 720 - - 3170 - STREET PAVEMENT MAINTENANCE 128,232 197,753 203,129 265,000 265,000 980,900 3180 - STREET LANDSCAPE MAINTENANCE 634,391 735,320 607,476 715,100 715,100 605,000 3220 - LANDSLIDE - 15,438 - - - - 3230 - FUEL MODIFICATION 24,750 - - - - - 8000 - CAPITAL PROJECTS 285,517 1,626,932 119,775 2,346,782 348,789 1,000,000 Fund: 209 - EL PRADO LIGHTING DISTRICT - - - $500 $500 $500 0000 - UNASSIGNED - - - 500 500 500 B-4 *FY 2023-24 amounts exclude approved transfers-out of $889,500 for CIP and $291,300 for Employee Pension Service Fund as these are funded from prior year's surplus and excess reserves. * FY 2023-24 PRELIMINARY BUDGET Statement of Expenditures - All Funds Fund Program FY 2019-20 Actual FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Revised Budget FY 2022-23 YE Estimate FY 2023-24 Preliminary Budget Fund: 211 - 1911 ACT STREET LIGHTING $970,976 $828,970 $386,790 $476,100 $110,000 $155,000 0000 - UNASSIGNED 461,726 460,560 371,038 476,100 110,000 155,000 8000 - CAPITAL PROJECTS 509,250 368,410 15,752 - - - Fund: 213 - WASTE REDUCTION $223,785 $224,461 $318,983 $307,120 $300,500 $298,000 0000 - UNASSIGNED 223,785 224,461 318,983 307,120 300,500 298,000 Fund: 214 - AIR QUALITY MANAGEMENT - $55,839 $54,000 $190,000 $140,000 - 0000 - UNASSIGNED - 55,839 54,000 190,000 140,000 - Fund: 215 - PROPOSITION C $698,806 $759,078 $739,950 $1,388,674 $1,434,095 $1,050,000 8000 - CAPITAL PROJECTS 698,806 759,078 739,950 1,388,674 1,434,095 1,050,000 Fund: 216 - PROPOSITION A $1,236,694 $1,338,029 $777,197 $777,200 $776,800 $854,227 0000 - UNASSIGNED 777,958 827,188 777,197 777,200 776,800 854,227 8000 - CAPITAL PROJECTS 458,736 510,841 - - - - Fund: 220 - MEASURE R $72,167 $427,417 $209,325 $1,698,322 $210,848 $685,000 3120 - TRAFFIC MANAGEMENT - - 100,044 1,168 - 125,000 8000 - CAPITAL PROJECTS 72,167 427,417 109,281 1,697,154 210,848 560,000 Fund: 221 - MEASURE M $525,317 $414,190 $536,921 $1,266,000 $938,582 $1,356,400 0000 - UNASSIGNED 525,317 414,190 536,921 681,000 776,000 820,000 3130 - STORM WATER QUALITY - - - - - 81,400 8000 - CAPITAL PROJECTS - - - 585,000 162,582 455,000 Fund: 222 - HABITAT RESTORATION $152,745 $153,618 $305,793 $222,000 $206,500 $179,000 0000 - UNASSIGNED 152,745 153,618 305,793 222,000 206,500 179,000 Fund: 223 - SUBREGION ONE MAINTENANCE $42,530 $42,116 $44,703 $43,600 $28,000 $30,000 0000 - UNASSIGNED 42,530 42,116 44,703 43,600 28,000 30,000 Fund: 225 - ABALONE COVE SEWER DISTRICT $138,010 $94,903 $119,142 $212,839 $207,500 $173,500 0000 - UNASSIGNED 138,010 94,903 119,142 212,839 207,500 173,500 Fund: 227 - GINSBURG CULTURAL ART BLD $1,045 - - - - - 0000 - UNASSIGNED 1,045 - - - - - Fund: 228 - DONOR RESTRICTED CONTRIBUTION $16,770 $26,608 $13,770 $14,600 $13,500 $18,000 0000 - UNASSIGNED 3,406 15,778 - - - - 5411 - SALES - AMPHITHEATER PLAQUES 2,829 2,662 3,494 3,600 7,000 8,000 5412 - SALES - BRONZE WHALES - - 1,912 - - - 5413 - OUTDOOR GARDEN 7,965 5,805 6,497 8,500 4,000 7,500 5414 - COMMEMORATIVE BENCHES 2,570 2,363 1,867 2,500 2,500 2,500 Fund: 310 - CDBG $211,806 $29,908 $158,529 $502,929 $350,000 $150,000 3110 - PUBLIC WORKS ADMINISTRATION - 3,008 2,875 - - - 8000 - CAPITAL PROJECTS 211,806 26,900 155,654 502,929 350,000 150,000 Fund: 330 - CAPITAL INFRASTRUCTURES PROJEC $4,652,909 $889,717 $674,797 $23,991,764 $11,965,709 $7,672,796 8000 - CAPITAL PROJECTS 4,652,909 889,717 674,797 23,991,764 11,965,709 7,672,796 Fund: 331 - FEDERAL GRANTS $14 - - $105,000 - $2,624,564 0000 - UNASSIGNED 14 - - - - - 8000 - CAPITAL PROJECTS - - - 105,000 - 2,624,564 Fund: 332 - STATE GRANTS $277,373 $49,207 $89,053 $430,938 $220,938 $210,000 4120 - PLANNING - - 89,053 430,938 220,938 210,000 8000 - CAPITAL PROJECTS 277,373 49,207 - - - - Fund: 333 - AMERICAN RESCUE PLAN ACT (ARPA)- - $1,803,693 $7,327,068 $3,026,128 $3,212,640 8000 - CAPITAL PROJECTS - - 1,803,693 7,327,068 3,026,128 3,212,640 Fund: 334 - QUIMBY PARK DEVELOPMENT $545,813 $130,863 $422,174 $745,974 $543,026 - 8000 - CAPITAL PROJECTS 545,813 130,863 422,174 745,974 543,026 - Fund: 338 - ENVIRONMENTAL EXCISE TAX $286,881 $143,635 $120,090 $64,000 $64,000 - 3170 - STREET PAVEMENT MAINTENANCE 88,571 143,635 120,090 64,000 64,000 - 3180 - STREET LANDSCAPE MAINTENANCE 198,310 - - - - - Fund: 340 - BICYCLE/PEDESTRIAN ACCESS - $511 $28,038 $110,000 - - 0000 - UNASSIGNED - 511 - - - - 3180 - STREET LANDSCAPE MAINTENANCE - -28,038 - - - 8000 - CAPITAL PROJECTS - -- 110,000 - - Fund: 343 - MEASURE W - $187,954 $465,213 $627,337 $407,500 $608,300 0000 - UNASSIGNED - - 58,000 61,000 - - 3130 - STORM WATER QUALITY - 187,954 407,213 566,337 407,500 363,300 8000 - CAPITAL PROJECTS - - - - - 245,000 Fund: 681 - EQUIPMENT REPLACEMENT $360,246 $198,644 $127,124 $605,000 - $621,000 0000 - UNASSIGNED 360,246 198,644 127,124 605,000 - 621,000 Fund: 682 - EMPLOYEE PENSION PLAN - - - $242,000 $242,000 $135,700 2999 - NON-DEPARTMENTAL - - - 242,000 242,000 135,700 TOTAL ALL OTHER FUNDS 11,499,283 8,595,014 8,334,803 44,676,567 22,515,015 22,620,527 FY 2023-24 GRAND TOTAL EXPENDITURES 40,038,131 34,834,859 39,963,112 83,742,141 60,859,715 60,700,027 B-5 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 8200 Series Abalone Cove Santitary Sewer System Projects 330 (CIP Fund)19,250$ 200,000$ 3,630,000$ 1,090,000$ -$ -$ 8300 Series Landslide Improvement Projects 330 (CIP Fund)111,425$ -$ -$ -$ 275,000$ 2,445,000$ 215 (Proposition C)N/A - ongoing 1,050,000$ 1,100,000$ 1,150,000$ 575,000$ TBD 330 (CIP Fund)N/A - ongoing 320,000$ 350,000$ 360,000$ 1,000,000$ TBD 220 (Measure R)296,192$ -$ -$ -$ -$ -$ 330 (CIP Fund)711,194$ 710,000$ 1,770,000$ 5,140,000$ 3,463,000$ -$ 331 (Federal Grants)-$ 500,000$ 4,000,000$ 10,400,000$ 7,100,000$ -$ 8400 Series Parks, Open Space & Recreation Facilities Projects 330 (CIP Fund)-$ -$ 285,000$ -$ -$ -$ 330 (CIP Fund)12,891,229$ -$ -$ -$ -$ -$ 333 (ARPA Federal Grant)4,173,000$ -$ -$ -$ -$ -$ 334 (Quimby park development)1,705,855$ -$ -$ -$ -$ -$ 330 (CIP Fund)249,000$ 30,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ 75,000$ TBD TBD TBD -$ 330 (CIP Fund)-$ 115,000$ -$ -$ -$ -$ 333 (ARPA Federal Grant)-$ -$ -$ -$ -$ -$ 8500 Series Building Improvements Projects 330 (CIP Fund)351,103$ 1,025,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ 380,000$ -$ -$ -$ -$ 333 (ARPA Federal Grant)35,600$ 350,000$ -$ -$ -$ -$ 330 (CIP Fund)107,311$ 825,000$ 355,000$ 660,000$ 545,000$ 555,000$ 330 (CIP Fund)-$ -$ 50,000$ 700,000$ -$ -$ 8700 Series Sewer & Storm Drain Improvements Projects 330 (CIP Fund)-$ 500,000$ TBD TBD TBD TBD 330 (CIP Fund)365,727$ -$ -$ -$ 520,000$ TBD 330 (CIP Fund)273,884$ 760,500$ -$ -$ -$ -$ 331 (Federal Grants)-$ 1,939,500$ -$ -$ -$ -$ 330 (CIP Fund)-$ -$ 40,000$ 315,000$ -$ -$ 343 (Measure W - Regional Grant)-$ 245,000$ 5,365,000$ -$ -$ -$ 330 (CIP Fund)-$ 115,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ 325,000$ -$ -$ -$ -$ City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 Palos Verdes Drive South Landslide Repair Program New Civic Center Complex Restroom Improvements and New Office Space at Eastview Park Facilities Asset Management Program Storm Drain Asset Management Program & Master Plan Update Point Vicente Interpretive Center Restroom Improvements 8302 8301 Palos Verdes Drive South Realignment - East End 8202 Abalone Cove Sanitary Sewer Rehabilitation Program 8405 8304 Portuguese Bend Landslide Remediation Fence Program8404 8508 Ladera Linda Community Park 8715 Stormwater Drainage Improvements - Palos Verdes Drive South at Peppertree Drive Park Playground Improvements 85Pot1 8509 8503 8426 8420 Palos Verdes Nature Preserve Signs Program 8417 Point Vicente Interpretive Center "Bubbles" Statue Marquee Sign 87New2 8708 Altamira Canyon Improvements 8701 8721 Storm Drain Improvements at Peacock Ridge Road Multi-Jurisdictional Stormwater Treatment at Torrance Airport 8723 8722 Storm Drain Outlet Improvements at Ocean Crest Drive Lift Station Improvements at Lower Point Vicente C-1 I I I I I ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 8800 Series Right-of-Way Improvements Projects 202 (Gas Tax - SB1)170,000$ -$ -$ -$ -$ -$ 220 (Measure R)-$ 175,000$ -$ -$ -$ -$ 330 (CIP Fund)85,000$ -$ -$ -$ -$ -$ 333 (ARPA Federal Grant)-$ 500,000$ -$ -$ -$ -$ 215 (Proposition C)200,000$ -$ -$ -$ -$ -$ 220 (Measure R)74,483$ -$ -$ -$ -$ -$ 221 (Measure M - Grant)471,900$ 455,000$ 3,110,000$ -$ -$ -$ 310 (CDBG)-$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 215 (Proposition C)58,448$ -$ -$ 85,000$ -$ -$ 220 (Measure R)-$ -$ -$ -$ 1,270,000$ -$ 330 (CIP Fund)7,271$ -$ -$ -$ -$ -$ 215 (Proposition C)375,427$ -$ -$ -$ -$ -$ 220 (Measure R)-$ -$ 430,000$ -$ -$ -$ 330 (CIP Fund)211,391$ 537,400$ -$ -$ -$ -$ 333 (ARPA Federal Grant)135,000$ 2,362,600$ -$ -$ -$ -$ 220 (Measure R)115,096$ -$ -$ -$ -$ -$ 330 (CIP Fund)10,000$ -$ -$ -$ -$ -$ 333 (ARPA Federal Grant)940,000$ -$ -$ -$ -$ -$ 202 (Gas Tax - SB1)198,718$ -$ 195,000$ -$ -$ 215,000$ 330 (CIP Fund)26,850$ -$ 170,000$ TBD TBD TBD 220 (Measure R)-$ 385,000$ 345,000$ -$ -$ -$ 330 (CIP Fund)137,780$ 200,000$ 255,000$ 625,000$ 650,000$ 665,000$ 330 (CIP Fund)-$ -$ 10,100$ -$ -$ -$ 331 (Federal Grants)-$ 40,000$ 959,900$ -$ -$ -$ 330 (CIP Fund)99,929$ 330,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ -$ 416,400$ -$ -$ -$ XXX (Metro - STP-L)-$ 145,000$ 1,473,600$ -$ -$ -$ 330 (CIP Fund)-$ -$ -$ 95,000$ 1,405,000$ -$ 330 (CIP Fund)-$ -$ -$ 210,000$ 4,825,000$ -$ 330 (CIP Fund)-$ 1,225,000$ 1,120,000$ 1,375,000$ 1,450,000$ 2,180,000$ 202 (Gas Tax - SB1)-$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 220 (Measure R)-$ -$ 60,000$ 805,000$ -$ -$ 330 (CIP Fund)-$ -$ 40,000$ 540,000$ -$ -$ 220 (Measure R)-$ -$ -$ -$ 60,000$ 835,000$ 330 (CIP Fund)-$ -$ -$ -$ 65,000$ 905,000$ 24,608,063$ 16,970,000$ 26,680,000$ 24,700,000$ 24,353,000$ 8,950,000$ 8845 Traffic Signal at Palos Verdes Drive South and Palos Verdes Drive East8837 88New4 Roadway Asset Management Program - Crestridge Road 8853 8846 8847 Traffic Calming Program - Palos Verdes Nature Preserve Parking Traffic Calming Program - (Citywide) 8856 88LY2 Roadway Asset Management Program - Indian Peak Road 88New5 Palos Verdes Drive East Guardrail Improvements Curb Ramp Improvements Program Roadway Asset Management Program - Triennial Update 8843 Roadway Asset Management Program - Silver Spur Road (North of Hawthorne Boulevard) Western Avenue Traffic Flow Improvements Western Avenue Beautification (long term) 8828 Intersection Improvements along Palos Verdes Drive South 8840 8844 88New2 Roadway Asset Management Program - Palos Verdes Drive East Roadway Asset Management Program - Highridge Road 88LY4 8855 Roadway Asset Management Program - Palos Verdes Drive South 88New3 Roadway Asset Management Program - Residential Streets Roadway Asset Management Program - Montemalaga Drive Roadway Asset Management Program - Crest Road 8810 8808 Roadway Asset Management Program - Crenshaw Boulevard Retaining Wall Repairs at 3001 Crest Road 8809 C-2 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 Funding Summary 202 (Gas Tax)-$ -$ -$ -$ -$ -$ 202 (Gas Tax - SB1)368,718$ 1,000,000$ 1,195,000$ 1,000,000$ 1,000,000$ 1,215,000$ 211 (1911 Act)-$ -$ -$ -$ -$ -$ 215 (Proposition C)633,875$ 1,050,000$ 1,100,000$ 1,235,000$ 575,000$ -$ 220 (Measure R)485,771$ 560,000$ 835,000$ 805,000$ 1,330,000$ 835,000$ 221 (Measure M)-$ -$ -$ -$ -$ -$ 221 (Measure M - Grant)471,900$ 455,000$ 3,110,000$ -$ -$ -$ 225 (Ab Cove sewer maint.)-$ -$ -$ -$ -$ -$ 310 (CDBG)-$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 330 (CIP Fund)15,658,344$ 7,672,900$ 8,491,500$ 11,110,000$ 14,198,000$ 6,750,000$ 331 (Federal Grants)-$ 2,479,500$ 4,959,900$ 10,400,000$ 7,100,000$ -$ XXX (Metro - STP-L)-$ 145,000$ 1,473,600$ -$ -$ -$ 333 (ARPA Federal Grant)5,283,600$ 3,212,600$ -$ -$ -$ -$ 334 (Quimby park development)1,705,855$ -$ -$ -$ -$ -$ 340 (Bicycle & Ped access)-$ -$ -$ -$ -$ -$ 343 (Measure W)-$ -$ -$ -$ -$ -$ 343 (Measure W - Regional Grant)-$ 245,000$ 5,365,000$ -$ -$ -$ 24,608,063$ 16,970,000$ 26,680,000$ 24,700,000$ 24,353,000$ 8,950,000$ C-3 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 Wants/Needs List (Projects not recommended for funding in Fiscal Years 2022-23 through 2026-27) 8200 Series Abalone Cove Santitary Sewer System Projects 8300 Series Landslide Improvement Projects 8400 Series Parks, Open Space & Recreation Facilities Projects 8411 Lower Point Vicente Parking Lot Lighting Improvements 211 (1911 Act)-$ 8418 Hesse Park Parking Lot & Lighting Improvements 330 (CIP Fund)-$ 8421 Lower Point Vicente Park Improvements 330 (CIP Fund)-$ 84LY1 Lower Hesse Park Improvements 330 (CIP Fund)-$ 8500 Series Building Improvements Projects 8700 Series Sewer & Storm Drain Improvements Projects 8711 Stormwater Drainage Improvements at Bayend Drive 330 (CIP Fund)-$ 8714 Stormwater Drainage Improvements from Crest Road to Crestridge Canyon 330 (CIP Fund)-$ 8718 Stormwater Drainage Improvements at Corsini Place 330 (CIP Fund)-$ 87New1 Stormwater Drainage Improvements - Hawthorne Boulevard at Hawkhurst Drive 330 (CIP Fund)-$ 8800 Series Right-of-Way Improvements Projects 8811 Aesthetic Improvements Program - Arterial Walls and Fences (City- wide)330 (CIP Fund)-$ 8839 Palos Verdes Drive East Widening and Path Improvements near Bronco Drive 330 (CIP Fund)-$ 8851 Arterial Roadway Beautification Program 330 (CIP Fund)-$ 8854 Palos Verdes Drive East Traffic improvements Near Bronco Drive 215 (Proposition C)-$ C-4 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 COMPLETED PROJECTS 8200 Series Abalone Cove Santitary Sewer System Projects 8300 Series Landslide Improvement Projects 8302 Palos Verdes Drive South Landslide Repair Program 8400 Series Parks, Open Space & Recreation Facilities Projects 8423 Nature Preserve Gate for the Rattlesnake Trail 8424 Park Monument Signs 8500 Series Building Improvements Projects 8700 Series Sewer & Storm Drain Improvements Projects 8800 Series Right-of-Way Improvements Projects 8810 Curb Ramp Improvements Program 8848 Roadway Asset Management Program - Silver Spur Road (South of Hawthorne Boulevard) 8852 City Entrance Roadway Monument Signs C-5