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ACFR FY 2020-21CITY OF RANCHO PALOS VERDES FISCAL YEAR ENDED JUNE 30, 2021 C A L I F O R N I A ANNUAL COMPREHENSIVE FINANCIAL REPORT       CITY OF RANCHO PALOS VERDES, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED JUNE 30, 2021 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO PALOS VERDES, CALIFORNIA TABLE OF CONTENTS YEAR ENDED JUNE 30, 2021 INTRODUCTORY SECTION  LETTER OF TRANSMITTAL i  DIRECTORY OF OFFICIALS viii  ORGANIZATION CHART ix  GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING x  FINANCIAL SECTION  INDEPENDENT AUDITORS’ REPORT 1  MANAGEMENTS’ DISCUSSION AND ANALYSIS (REQUIRED SUPPLEMENTARY INFORMATION) 5  BASIC FINANCIAL STATEMENTS  GOVERNMENT-WIDE FINANCIAL STATEMENTS  STATEMENT OF NET POSITION 20  STATEMENT OF ACTIVITIES 21  FUND FINANCIAL STATEMENTS  GOVERNMENTAL FUNDS  BALANCE SHEET 22  RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION 23  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 24  RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 25  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND 26  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – PROPOSITION C SPECIAL REVENUE FUND 28  CITY OF RANCHO PALOS VERDES, CALIFORNIA TABLE OF CONTENTS YEAR ENDED JUNE 30, 2021 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – STATE GRANTS SPECIAL REVENUE FUND 29  PROPRIETARY FUND  STATEMENT OF NET POSITION 30  STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION 31  STATEMENT OF CASH FLOWS 32  FIDUCIARY FUND  STATEMENT OF FIDUCIARY NET POSITION 33  STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 34  NOTES TO FINANCIAL STATEMENTS 36  REQUIRED SUPPLEMENTARY INFORMATION  SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 70  SCHEDULE OF PENSION CONTRIBUTIONS 71  SUPPLEMENTARY INFORMATION  NONMAJOR GOVERNMENTAL FUNDS  DESCRIPTION OF SPECIAL REVENUE FUNDS 72  COMBINING BALANCE SHEET 74  COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 80  SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL  SPECIAL REVENUE FUNDS  GAS TAX FUND 86  1972 ACT FUND 87  EL PRADO FUND 88  CITY OF RANCHO PALOS VERDES, CALIFORNIA TABLE OF CONTENTS YEAR ENDED JUNE 30, 2021 1911 ACT FUND 89  WASTE REDUCTION FUND 90  AIR QUALITY MANAGEMENT FUND 91  PROPOSITION A FUND 92  PUBLIC SAFETY GRANTS FUND 93  MEASURE R FUND 94  MEASURE A FUND 95  MEASURE M FUND 96  MEASURE W FUND 97  ABALONE COVE SEWER ASSESSMENT FUND 98  DONOR-RESTRICTED CONTRIBUTIONS FUND 99  JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND FUND 100  COMMUNITY DEVELOPMENT BLOCK GRANT FUND 101  QUIMBY FUND 102  ENVIRONMENTAL EXCISE TAX FUND 103  CAPITAL PROJECTS FUND  LOW-MODERATE INCOME CAPITAL PROJECTS FUND 104  AFFORDABLE HOUSING IN-LIEU CAPITAL PROJECTS FUND 105  PERMANENT FUNDS  HABITAT RESTORATION FUND 106  SUBREGION ONE PERMANENT FUND 107  JOINT POWERS IMPROVEMENT AUTHORITY – ABALONE COVE FUND 108  CAPITAL IMPROVEMENT MAJOR CAPITAL PROJECTS FUND  SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE 109  CITY OF RANCHO PALOS VERDES, CALIFORNIA TABLE OF CONTENTS YEAR ENDED JUNE 30, 2021 STATISTICAL SECTION (UNAUDITED)  DESCRIPTION OF STATISTICAL SECTION CONTENTS 110  FINANCIAL TRENDS  NET POSITION BY COMPONENT 111  CHANGES IN NET POSITION 113  GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE 116  FUND BALANCES OF GOVERNMENTAL FUNDS 117  CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 119  REVENUE CAPACITY  ASSESSED VALUE OF TAXABLE PROPERTY 121  ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY 122  PROPERTY TAX RATES – DIRECT AND OVERLAPPING GOVERNMENTS 123  PRINCIPAL PROPERTY TAX PAYERS 125  PROPERTY TAX LEVIES AND COLLECTIONS 126  DEBT CAPACITY  DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 128  LEGAL DEBT MARGIN INFORMATION 129  DEMOGRAPHIC AND ECONOMIC INFORMATION  DEMOGRAPHIC AND ECONOMIC STATISTICS 131  PRINCIPAL SALES TAX PRODUCERS 133  PRINCIPAL EMPLOYERS 134  OPERATING INFORMATION  FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION 136  OPERATING INDICATORS BY FUNCTION 137  CAPITAL ASSET STATISTICS BY FUNCTION 139 INTRODUCTORY SECTION       ( ) ( ) ( ) ( ) ( ) ( ) ( ) THIS PAGE INTENTIONALLY LEFT BLANK (viii) Comprehensive Annual Financial Report FY 2020-2021 FY 2020-21 CITY OFFICIALS CITY STAFF City Manager Ara Mihranian, AICP Deputy City Manager………………………………….…………..…….Karina Banales Director of Finance…………………………….………………...............Trang Nguyen Director of Public Works………………………………………….……Ramzi Awwad Director of Recreation and Parks…...............................................Cory Linder Director of Community Development……………………....…….Ken Rukavina RESIDENTS OF RANCHO PALOS VERDES CITY COUNCIL PLANNING COMMISSION FINANCE ADVISORY COMMITTEE INFRASTRUCTURE MANAGEMENT ADVISORY COMMITTEE TRAFFIC SAFETY COMMITTEE EMERGENCY PREPAREDNESS COMMITTEE STORM DRAIN OVERSIGHT COMMITTEE (WQFPP) CITY MANAGER CITY ATTORNEY DEPUTY CITY MANAGER FINANCE PUBLIC WORKSCOMMUNITY DEVELOPMENT RECREATION & PARKS INFORMATION TECHNOLOGY HUMAN RESOURCESCITY CLERK PUBLIC SAFETY (ix) Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rancho Palos Verdes California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2020 Executive Director/CEO (x) (xi) THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION CLA is an independent member of Nexia International, a leading, global network of independent   accounting and consulting firms. See nexia.com/member‐firm‐disclaimer for details. (1) CliftonLarsonAllen LLP  CLAconnect.com  INDEPENDENT AUDITORS’ REPORT City Council Members City of Rancho Palos Verdes Rancho Palos Verdes, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rancho Palos Verdes (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. City Council Members City of Rancho Palos Verdes (2) Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rancho Palos Verdes, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the general fund, proposition c special revenue fund and state grants special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of proportionate share of the net pension liability, and the schedule of pension contributions, identified as Required Supplementary Information, be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements. The introductory section, combining statements and individual fund schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements and individual fund schedules, as listed in the table of contents, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements and individual fund schedules are fairly stated in all material respects in relation to the financial statements as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we do not express an opinion or provide any assurance on them. (3) City Council Members City of Rancho Palos Verdes Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Irvine, California February 28, 2022 (4) THIS PAGE INTENTIONALLY LEFT BLANK MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (5) The Management of the City of Rancho Palos Verdes offers readers of the City of Rancho Palos Verdes’ Financial Statements this narrative overview and analysis of the City’s financial activities for the Fiscal Year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our Letter of Transmittal, which can be found on pages i-vii of this report. FINANCIAL HIGHLIGHTS •The assets and deferred outflows of resources of the City of Rancho Palos Verdes exceeded its liabilities and deferred inflows of resources at the close of the Fiscal Year ended June 30, 2021, by $219.8 million (Net Position). Of this amount, $43.0 million (Unrestricted Net Position) may be used to meet the City’s ongoing obligations to its citizens and creditors. The remaining amount is invested in capital assets or is otherwise restricted, and therefore not available to meet the City’s obligations. •The City’s total Net Position increased by $0.3 million from the prior year from the Governmental activities primarily due to the increased in revenues since the COVID-19 pandemic. •As of June 30, 2021, the City’s Governmental Funds reported combined ending Fund Balances of $65.1 million, an increase of $4.0 million in comparison with the prior year. This increase is a combination of lower expenditures and slightly higher inflow of revenues. •At the end of the current fiscal year, the General Fund reported an increase in fund balance in the amount of $4.1 million. The increase is due primarily to higher inflow of revenues over expenditures. •As of June 30, 2021, unassigned fund balance for the General Fund was $21.9 million or 85% of the General Fund expenditures. Of this amount, $21.4 million constitutes the City Council’s General Fund Reserve (rainy day fund). •As a result of the City Council’s reserve policy, the unassigned fund balance has historically been maintained at or above the policy threshold level of 50% of annually budgeted General Fund expenditures. At the end of the current fiscal year, the General Fund expenditures including transfers was $26.2 million. The General Fund unassigned fund balance represents 84% of this amount. MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (6) OVERVIEW OF THE BASIC FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) Government-Wide Financial Statements; 2) Fund Financial Statements; and 3) Notes to the Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two reported as Net Position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Rancho Palos Verdes is improving or deteriorating. The Statement of Activities presents information showing how the government’s net position changed during the most recent Fiscal Year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both the Government-Wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, community development and parks and recreation. The City no longer has business-type activities. The Government-Wide Financial Statements include not only the City of Rancho Palos Verdes itself (known as the Primary Government), but also a legally separate Improvement Authority for which the City of Rancho Palos Verdes is financially accountable. Financial information for this Component Unit has been included as an integral part of the primary government. MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (7) The Government-Wide Financial Statements can be found on pages 20-21 of this report. Fund Financial Statements A Fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Rancho Palos Verdes, like other State and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the Funds of the City can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds. Governmental Funds Governmental Funds are used to account for essentially the same functions reported as governmental activities in the Government-Wide Financial Statements. However, unlike the Government-Wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the Fiscal Year. Such information may be useful in evaluating a government’s near-term financing requirements. The Governmental Fund Financial Statements can be found on pages 22-25. Because the focus of Governmental Funds is narrower than that of the Government-Wide Financial Statements, it is useful to compare the information presented for Governmental Funds with similar information presented for governmental activities in the Government- Wide Financial Statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. The Governmental Balance Sheet and Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between Governmental Funds and governmental activities. The City of Rancho Palos Verdes maintained 27 individual Governmental Funds during the Fiscal Year ended June 30, 2021. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Proposition C Fund, State Grants Fund, and the Capital Improvements Fund are considered to be major funds. Data from the other 23 Governmental Funds are combined into a single, aggregated presentation. Individual fund data for each of these Other Governmental Funds is provided in the form of combining statements elsewhere in this report. MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (8) The City of Rancho Palos Verdes adopts an annual appropriated budget for each of its Governmental Funds. A budgetary comparison statement has been provided for each Governmental Funds to demonstrate compliance with this budget. Proprietary Fund The City of Rancho Palos Verdes maintains one type of Proprietary Fund. Internal Service Funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an Internal Service Fund to account for its fleet of vehicles, computer systems, furniture and equipment, and Civic Center building replacement/improvements. Because these services predominantly benefit the governmental function, they have been included within governmental activities in the Government-Wide Financial Statements. The Proprietary Fund Financial Statements can be found on pages 30-32 of this report. The Proprietary Fund Financial Statements provide separate information for the City’s Internal Service Fund. The Internal Service Fund is combined and presented with the City’s governmental activities in the government-wide financial statements. Fiduciary Fund The City is a fiduciary component unit for the Successor Agency to the Rancho Palos Verdes Redevelopment Agency (the “Successor Agency”). The City is responsible for ensuring that the assets reported in the Successor Agency’s private-purpose trust fund are only: 1) used to extinguish the obligations of the former RDA; or 2) transferred to another agency pursuant to state redevelopment dissolution law. All of the fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. We exclude these activities from the City’s Government-Wide Financial Statement because the City cannot use these assets to finance its operations. Individual Fiduciary Fund statements can be found on pages 33- 34 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The notes to the financial statements can be found on pages 36-68 of this report. MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (9) Other Information The combining statements referred to earlier in connection with Other Governmental Funds and Internal Service Funds are presented immediately following the Notes to the Financial Statements. Combining and individual fund statements and schedules can be found on pages 74-109 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Rancho Palos Verdes, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $219.8 million at June 30, 2021. By far, the largest portion of the City’s Net Position of $153.6 million or 70% reflects its net investment in Capital Assets (e.g. Land, Infrastructure, Buildings, and Equipment). The City uses these Capital Assets to provide services to its citizens; consequently, these assets are not available for future spending. MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (10) Summary of Net Position 2021 2020 Current and other assets 81,794,941$ 77,628,528$ Capital assets 154,129,751 157,569,827 Total assets 235,924,692 235,198,355 Deferred outflows of resources 2,483,234 2,661,430 Long-term liabilities outstanding 13,157,805 12,008,364 Other liabilities 5,282,098 5,714,365 Total liabilities 18,439,903 17,722,729 Deferred inflows of resources 208,614 676,537 Net Investment in capital assets 153,568,014 156,763,391 Restricted 23,206,283 24,128,839 Unrestricted 42,985,112 38,568,289 Total net position 219,759,409$ 219,460,519$ Governmental Activities MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (11) A portion of the City’s Net Position of $23.2 million or 11%, represents resources subject to external restrictions. The remaining balance of Unrestricted Net Position of $43.0 million or 20 % may be used to meet the government’s ongoing obligations to its citizens and creditors. Compared to the prior year, the total current and other assets increased by $4.2 million The increase is due primarily to higher inflow of revenues over expenditures. As a result of the net pension liability increase, the long-term liabilities outstanding increased by $1.1 million over the prior year. Additionally, other liabilities decreased by $0.4 million over prior year. Statement of Activities 2021 2020 Program revenues: Charges for services 3,579,336$ 3,855,702$ Operating contributions and grants 5,086,905 4,604,829 Capital contributions and grants 1,253,501 625,618 General revenues: Property taxes 15,966,164 14,993,467 Other taxes 10,116,608 10,526,313 Other 1,511,404 1,850,900 Total revenues 37,513,918 36,456,829 Administration 8,476,055$ 9,205,078$ Public safety 7,250,780 7,360,045 Public works 15,885,356 18,182,315 Community development 2,623,915 2,857,235 Parks and recreation 2,978,922 2,857,317 Total expenses 37,215,028 40,461,990 (Decrease) / Increase in net position 298,890 (4,005,161) Net position - beginning of fiscal year 219,460,519 223,465,680 Net position - end of fiscal year 219,759,409$ 219,460,519$ Governmental Activities MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (12) Governmental Activities As illustrated in the chart above, the City’s Net Position in Governmental Activities increased by $0.3 million when compared to the prior year. The increase is mainly due to the recovery of the revenues since the COVID-19 pandemic and lower expenditures than anticipated due to staff vacancies and planned projects that were not completed June 30, 2021. Overall, government-wide revenues for the fiscal year ended June 30, 2021, increased by $1.1 million. Of the increased amount, $0.8 million was from the program revenues in grants and $0.2 million was from general revenues. The percentages of each category for the sources of revenues are illustrated in the following chart. Sources of Revenue - Governmental Activities Charges for  Services Operating  Contribution s and Grants 14% Capital  Contributions  and Grants 3% Property Taxes 43% Other Taxes 27% Other 4% MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (13) The government-wide expenses for the fiscal year ended June 30, 2021 decreased by $3.2 million from the prior year. The majority of the decreased amount was from the ongoing capital and maintenance projects that were not completed by year-end. The percentages of each function for the expenses are illustrated in the following chart. Expenses by Function – Governmental Activities Administration 23% Public Safety 19% Public Works 43% Community  Development 7% Parks and  Recreation 8% MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (14) FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS As of the end of the current fiscal year, the City’s Governmental Funds reported combined ending Fund Balances of $65.1 million, an increase of $4.0 million in comparison to the prior year. Approximately $62.1 million or 95% of the combined ending Fund Balances constitutes spendable fund balance. The remainder of the combined ending Fund Balances are non-spendable either due to legal restrictions or non-spendable in the form of prepaid items and inventory. Additional information on the non-spendable items can be found in Note # 7 on pages 54-55 of this report. The General Fund is the chief operating fund of the City of Rancho Palos Verdes. At the end of the current fiscal year, the unassigned fund balance of the General Fund is $21.9 million, while total Fund Balance reached to $25.8 million. As a measure of the General Fund’s liquidity, it may be useful to compare both Unassigned Fund Balance and Total Fund Balance to total fund uses (expenditures and transfers out). Unassigned Fund Balance represents 84% of total General Fund uses, while total Fund Balance represents 98% of the same amount. The fund balance of the City’s General Fund increased by $4.1 million from the prior year. The increase is due to the higher inflow of revenues, lower transfer to the Capital Infrastructure Program Fund based on actual revenues from transient occupancy taxes, delayed recruitments of vacant positions, planned projects that were not completed at year-end, and department wide savings. Additional details on General Fund are provided in the General Fund Highlights. Compared to the prior year, the fund balance for the Proposition C Special Revenue Fund decreased by $0.01 million. The reduction in the fund balance is a combination of slightly higher in revenues and higher expenditures related to traffic improvements. The State Grants Fund has a deficit fund balance of $0.2 million at June 30, 2021. This deficit will be eliminated once the City receives the reimbursement from the Proposition 84 Grant. The Capital Improvements Fund Balance ended the year with an increase of $1.0 million from the prior year. The majority of the increase is largely from the budgeted capital outlay projects that were not completed by year-end. These projects are primarily from the residential street rehabilitation program, maintenance of trail gates and nature preserve and the City’s Altamira Canyon drainage project. MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (15) Financial Analysis of Proprietary Fund The City’s Proprietary Fund provide the same type of information found in the Government-Wide Financial Statements, but in more detail. The Net Position of the Internal Service Fund at the end of the fiscal year amounted to $2.8 million, a decrease to the Net Position by $0.08 million. The decreased amount is due the replacement of computers and hardware, and the purchase of a vehicle for the Recreation and Parks program. General Fund Budgetary Highlights The City of Rancho Palos Verdes’ budget is prepared over the course of several months, beginning with a thorough review and analysis of the prior fiscal year between September and December. The General Fund actual year-end results show operations ending the year with total revenues of almost $30.1 million and $24.4 million of expenditures. When including net transfers of $1.6 million, there is a positive variance of just over $4.1 million (revenues to expenditures). Revenues experienced growth during FY 2020-2021 as the economy experienced a modest recovery from the downturn experienced due to the COVID-19 pandemic. Revenue Highlights Taxes The City’s tax revenue is its largest revenue sources. Taxes include property tax, transient occupancy tax (TOT), and sales tax. Tax revenues came in at $25.9 million, $236,110, or 0.9% over the final budget of $25.6 million. This increase in revenue was due primarily to property tax revenue that remained strong during the pandemic as demand for homes rose to record levels. Additionally, elevated demand for leisure activities lead to an increase in Golf Tax revenue. Fines and Forfeitures Revenues came in at $675,272, which is $449,872 or 200% over the final budget of $225,400. The two primary contributors to this increase in revenue were Parking Lot Fees and Traffic Tickets. MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (16) Licenses and Permits This category ended the year came in at $2 million, $188,254, or 10.4% over the final budget of $1.8 million as a result of demand for Building & Safety, Planning & Zoning, and Geology Permits exceeded expectations. Expenditure Highlights Salaries & Benefits This category ended the year almost $1 million or 9% under the final budget of $10.1 million. This is due to several delayed and unfilled positions and the reduction in staffing needs due to the closure of parks and facilities. Professional & Technical Services This category came in approximately $101,300 or 3% under the final budget of $3 million. This underrun is due to delayed services and planned services that were not utilized during the fiscal year. CAPITAL ASSET AND DEBT ADMINISTRATION The City’s investment in Capital Assets for its Governmental activities as of June 30, 2021, amounts to $153.4 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, park improvements, roadways, sewer, storm drains, vehicles, computer equipment, furniture, other equipment, and construction in progress. Major capital asset events during the current fiscal year included the following: Depreciation of $6.7 million was recorded for the City’s Capital Assets. A total of $3.1 million of construction in progress was added primarily from the residential and street improvements and beautification projects. MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (17) City of Rancho Palos Verdes Capital Assets (Net of Depreciation) Additional information on the City’s Capital Assets can be found in Note #4 on pages 50- 51 of this report. Long-term debt. At the end of the current Fiscal Year, the City of Rancho Palos Verdes had total debt outstanding of $523,087 for Employee Compensated Absences. 2021 2020 Capital assets not being depreciated Land 43,543,382$ 43,528,625$ Construction in progress 2,742,642 4,635,208 Total capital assets not being depreciated 46,286,024 48,163,833 Capital assets being depreciated, net Buildings 6,660,834 6,927,004 Vehicles 101,128 103,678 Computer equipment 1 24,580 Equipment - water quality - - Furniture, fixtures and equipment 126,933 151,276 Infrastructure Roadway system 52,709,738 52,132,630 Sewer system 4,030,329 4,484,110 Storm drain system 8,157,424 8,425,905 Storm drain system - water quality 31,120,549 31,953,125 Park system 4,936,791 5,203,686 Total capital assets being depreciated, net 107,843,727 109,405,994 Capital Assets, net 154,129,751$ 157,569,827$ Activities MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (18) City of Rancho Palos Verdes Outstanding Debt At the fiscal year ended June 30, 2021, the City’s total outstanding debt increased by $0.001 million or 28%. State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total assessed valuation. The current debt limitation for the City of Rancho Palos Verdes is $2,116,007,000. ECONOMIC FACTORS AND NEXT YEAR BUDGETS AND RATES The City historically follows a very fiscally conservative budgeting and forecasting model and continues this practice even as the State and local economy have experienced some improvement over the past fiscal year. The City maintains a healthy financial outlook and supports the General Fund operations with only recurring tax revenue. Roughly 50% of the City’s revenue came from property tax during FY 2020-2021. Property tax is expected to remain at 50% of general fund revenue during FY 2021-2022. This stable revenue base provides the City with a steady and predictable revenue inflow year over year. During FY 2021, total property values within the City grew by 3.28%, or $464 million, bringing the total net taxable property value for the City to $14.6 billion. This increase is slightly less than the 3.62% increase seen across Los Angeles County as a whole. The median sale price of a detached single family residential home in Rancho Palos Verdes from January through August 2021 was $1,650,000. This represents a $248,750 (17.75%) increase in median sale price from $1,401,250 in 2020. The economic downturn that has been felt across the state due to the pandemic has begun to show signs of recovery, however economic activity has not yet returned back to normal levels in all sectors. Despite the impact to revenue, the City-wide annual budget continues to showcase the City’s commitment to fiscal prudence, predicated on 2021 2020 Employee compensated absences 523,087           403,201            Total 523,087$         403,201$          Governmental MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2021 (19) maintaining a structurally sound operating budget, lean staffing, healthy cash reserves and absence of debt. REQUESTS FOR INFORMATION This Financial Report is designed to provide a general overview of the financial position of the City of Rancho Palos Verdes for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Finance Department at 30940 Hawthorne Boulevard, Rancho Palos Verdes, CA 90275 or finance@rpvca.gov. THIS PAGE INTENTIONALLY LEFT BLANK BASIC FINANCIAL STATEMENTS       CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF NET POSITION JUNE 30, 2021 See accompanying Notes to Financial Statements. (20) Governmental Activities ASSETS CURRENT ASSETS Cash and Investments 68,494,018$ Receivables: Taxes 1,877,238 Interest 31,067 Other 1,661,759 Inventory 48,692 Prepaid Items 1,093,025 Total Current Assets 73,205,799 NONCURRENT ASSETS Notes Receivable 8,589,142 Receivable from Successor Agency 10,528,468 Allowance for Successor Agency Receivable (10,528,468) Capital Assets: Nondepreciable 46,286,024 Depreciable, Net 107,843,727 Total Noncurrent Assets 162,718,893 Total Assets 235,924,692 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows Related to Pensions 2,483,234 LIABILITIES CURRENT LIABILITIES Accounts Payable and Accrued Liabilities 3,753,036 Retentions Payable 135,295 Unearned Revenue 360,540 Deposits Payable 742,301 Current Portion of Noncurrent Liabilities 290,926 Total Current Liabilities 5,282,098 NONCURRENT LIABILITIES Due Beyond One Year 232,161 Net Pension Liability 12,925,644 Total Noncurrent Liabilities 13,157,805 Total Liabilities 18,439,903 DEFERRED INFLOWS OF RESOURCES Deferred Inflows Related to Pensions 208,614 NET POSITION Net Investment in Capital Assets 153,568,014 Restricted for: Housing and Community Development 9,777,137 Transportation 5,302,457 Public Works 4,133,538 Parks and Recreation 1,973,629 Public Safety 104,205 Nonexpendable Endowment Principal 1,926,193 Unrestricted 42,974,236 Total Net Position 219,759,409$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (21) Net Revenue (Expense) and Program Revenues Changes in Operating Capital Net Position Charges for Grants and Grants and Governmental Functions/Programs Expenses Services Contributions Contributions Activities Governmental Activities: Administration 8,476,055$ 776,026$ -$ -$ (7,700,029)$ Public Safety 7,250,780 245,406 157,785 - (6,847,589) Public Works 15,885,356 214,785 4,929,120 1,253,501 (9,487,950) Parks and Recreation 2,978,922 412,219 - - (2,566,703) Community Development 2,623,915 1,930,900 - - (693,015) Total Primary Government 37,215,028$ 3,579,336$ 5,086,905$ 1,253,501$ (27,295,286) General Revenues: Taxes: Property Taxes 15,966,164 Transient Occupancy Tax 3,115,435 Franchise Tax 2,203,130 Utility User Tax 2,245,825 Other Taxes 632,886 Unrestricted Intergovernmental Revenue - Shared Sales Tax 1,919,332 Investment Income 676,392 Unrestricted Grants, Contributions, and Other Revenues 835,012 Total General Revenues 27,594,176 CHANGE IN NET POSITION 298,890 Net Position - Beginning of Year 219,460,519 NET POSITION - END OF YEAR 219,759,409$ CITY OF RANCHO PALOS VERDES, CALIFORNIA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2021 See accompanying Notes to Financial Statements. (22) Capital Projects Other Total Proposition State Capital Governmental Governmental General C Grants Improvements Funds Funds ASSETS Cash and Investments 25,523,475$ 1,204,882$ -$ 26,461,299$ 12,696,843$ 65,886,499$ Receivables: Taxes 1,855,414 - - - 21,824 1,877,238 Interest 11,708 539 - 11,618 6,039 29,904 Notes - - - - - - Other 297,786 26,000 410,906 - 927,067 1,661,759 Due from Other Funds 292,434 - - - - 292,434 Inventory 48,692 - - - - 48,692 Prepaid Items 1,093,025 - - - - 1,093,025 Receivable from Successor Agency 10,528,468 - - - - 10,528,468 Allowance for Successor Agency Receivable (10,528,468) - - - - (10,528,468) Total Assets 29,122,534$ 1,231,421$ 410,906$ 26,472,917$ 13,651,773$ 70,889,551$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable and Accrued Liabilities 2,215,664$ 663,894$ -$ 29,420$ 844,058$ 3,753,036$ Due to Other Funds - - 201,279 - 91,155 292,434 Retentions Payable 5,256 2,428 18,014 52,447 57,150 135,295 Unearned Revenue 360,540 - - - - 360,540 Deposits Payable 742,301 - - - - 742,301 Total Liabilities 3,323,761 666,322 219,293 81,867 992,363 5,283,606 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - 410,906 - 56,410 467,316 FUND BALANCES (DEFICITS) Nonspendable: Endowment Principal - - - - 1,926,193 1,926,193 Prepaid Items 1,093,025 - - - - 1,093,025 Inventory 48,692 - - - - 48,692 Restricted - 565,099 - 639,282 10,676,807 11,881,188 Committed 2,784,879 - - - - 2,784,879 Assigned - - - 25,751,768 - 25,751,768 Unassigned 21,872,177 - (219,293) - - 21,652,884 Total Fund Balances (Deficits) 25,798,773 565,099 (219,293) 26,391,050 12,603,000 65,138,629 Total Liabilities, Deferred Inflows, and Fund Balances 29,122,534$ 1,231,421$ 410,906$ 26,472,917$ 13,651,773$ 70,889,551$ Special Revenue CITY OF RANCHO PALOS VERDES, CALIFORNIA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2021 See accompanying Notes to Financial Statements. (23) Fund Balances - Total Governmental Funds 65,138,629$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.153,979,361 Receivables not available to pay for current period expenditures are reported as unavailable revenue in the financial statements. 467,316 Long-term notes receivable are not current available resources and, therefore, do not affect the governmental fund balance.8,589,142 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds.(523,087) The pension liability and related amounts are not due and payable in the current period and, therefore, are not reported in the governmental funds. Deferred outflows of resources and deferred inflows of resources related pensions are only reported in the Statement of Net Position as the changes in these amounts affect only the government-wide statements for governmental activities: Net Pension Liability (12,925,644) Deferred Outflows of Resources Related to Pensions 2,483,234 Deferred Inflows of Resources Related to Pensions (208,614) Internal service funds are used by management to charge the costs of certain activities, including equipment and building replacement to individual funds. The assets and liabilities of the internal service funds are included in the Statement of Net Position. 2,759,072 Net Position of Governmental Activities 219,759,409$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (24) Capital Projects Other Total Proposition State Capital Governmental Governmental General C Grants Improvements Funds Funds REVENUES Taxes 25,873,410$ -$ -$ -$ 884,661$ 26,758,071$ Licenses and Permits 2,007,454 - - - - 2,007,454 Revenue from Other Agencies 515,258 710,280 44,849 - 4,612,129 5,882,516 Charges for Services 5,360 - - - 187,231 192,591 Fines and Forfeitures 675,272 - - - - 675,272 Use of Money and Property 504,653 8,186 - 214,382 100,875 828,096 Other Revenues 531,416 26,000 - 757 56,695 614,868 Total Revenues 30,112,823 744,466 44,849 215,139 5,841,591 36,958,868 EXPENDITURES Current: Administration 5,455,667 - - - - 5,455,667 Public Safety 7,250,780 - - - - 7,250,780 Public Works 4,646,168 652,922 37,586 - 4,344,469 9,681,145 Parks and Recreation 2,650,848 - - - 10,830 2,661,678 Community Development 2,623,915 - - - - 2,623,915 Non-Departmental 1,814,562 - - - - 1,814,562 Capital Outlay - 106,156 11,621 889,716 2,416,810 3,424,303 Total Expenditures 24,441,940 759,078 49,207 889,716 6,772,109 32,912,050 Excess (Deficiency) of Revenues Over (Under) Expenditures 5,670,883 (14,612) (4,358) (674,577) (930,518) 4,046,818 OTHER FINANCING SOURCES (USES) Transfers In 130,000 - - 1,720,819 30,000 1,880,819 Transfers Out (1,750,819) - - - (130,000) (1,880,819) Total Other Financing Sources (Uses) (1,620,819) - - 1,720,819 (100,000) - NET CHANGE IN FUND BALANCES 4,050,064 (14,612) (4,358) 1,046,242 (1,030,518) 4,046,818 Fund Balances - Beginning of Year 21,748,709 579,711 (214,935) 25,344,808 13,633,518 61,091,811 FUND BALANCES - END OF YEAR 25,798,773$ 565,099$ (219,293)$ 26,391,050$ 12,603,000$ 65,138,629$ Special Revenue CITY OF RANCHO PALOS VERDES, CALIFORNIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (25) Fund Balances - Total Governmental Funds 4,046,818$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense, or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. Asset disposals are also not recognized in the governmental funds. This activity is reconciled as follows: Cost of Assets Capitalized 3,202,078 Depreciation Expense (6,562,281) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 414,684 Increases in long-term notes receivable use current financial resources and are included in the expenditures of governmental funds. Repayments of long-term notes receivable provide current financial resources and are included in the revenues of governmental funds. These changes in notes receivable are not reflected in the revenues or expenses of the Statement of Activities. This amount represents the net change in the long-term notes receivable. 119,001 Compensated absences expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. (119,886) Governmental funds report pension contributions as expenditures. However, in the Statement of Activities, pension expense is measured as the change in net pension liability and the amortization of deferred outflows and inflows relate to pensions. This amount represents the net change in pension related amounts. (717,844) Internal service funds are used by management to charge the costs of certain activities, including equipment and building replacement and employee benefits, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. (83,680) Change in Net Position of Governmental Activities 298,890$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL GENERAL FUND YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (26) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes 25,637,300$ 25,637,300$ 25,873,410$ 236,110$ Licenses and Permits 1,819,200 1,819,200 2,007,454 188,254 Revenue from Other Agencies - - 515,258 515,258 Charges for Services 13,500 13,500 5,360 (8,140) Fines and Forfeitures 225,400 225,400 675,272 449,872 Use of Money and Property 601,300 601,300 504,653 (96,647) Other Revenues 673,200 673,200 531,416 (141,784) Total Revenues 28,969,900 28,969,900 30,112,823 1,142,923 EXPENDITURES Administration: City Council 102,900 102,900 84,681 18,219 City Manager 770,300 718,200 628,592 89,608 Legal Services 1,000,000 930,000 886,407 43,593 Community Outreach 68,300 92,189 82,978 9,211 City Clerk 541,000 499,000 401,918 97,082 RPV TV 229,700 224,700 184,775 39,925 Personnel 316,000 343,200 309,885 33,315 Finance 1,565,100 1,497,472 1,458,001 39,471 Information Technology - Data 1,081,800 1,076,325 979,005 97,320 Information Technology - Voice 110,000 110,000 117,369 (7,369) Emergency Operations - - 322,056 (322,056) Total Administration 5,785,100 5,593,986 5,455,667 138,319 Public Safety: Sheriff 7,091,900 7,063,900 6,970,901 92,999 Special Programs 290,800 329,300 263,050 66,250 Emergency Preparedness 158,400 158,400 16,829 141,571 Total Public Safety 7,541,100 7,551,600 7,250,780 300,820 Public Works: Public Works Administration 2,095,500 2,091,155 1,934,346 156,809 Traffic Management 906,300 955,580 582,166 373,414 Storm Water Quality 506,000 506,000 472,168 33,832 Building Maintenance 529,000 544,000 477,391 66,609 Park/Trail/Open Space Maintenance 1,036,800 1,048,150 924,774 123,376 Street Landscape Maintenance 181,000 181,000 232,493 (51,493) Sewer Maintenance 35,000 35,000 22,830 12,170 Total Public Works 5,289,600 5,360,885 4,646,168 714,717 CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL GENERAL FUND (CONTINUED) YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (27) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) EXPENDITURES (CONTINUED) Parks and Recreation: Recreation Administration 1,185,700$ 1,030,155$ 991,454$ 38,701$ Recreation Facilities 1,150,700 1,207,129 1,019,258 187,871 Special Events 221,600 174,912 146,120 28,792 PVIC 550,400 502,127 427,698 74,429 REACH 71,700 61,600 43,008 18,592 Support Services 21,000 23,000 23,310 (310) Total Parks and Recreation 3,201,100 2,998,923 2,650,848 348,075 Community Development: Planning Services 1,444,200 1,399,422 1,145,825 253,597 Building and Safety 787,200 640,200 598,490 41,710 Code Enforcement 295,600 252,200 208,263 43,937 View Restoration/Preservation 359,300 368,000 385,703 (17,703) NCCP 50,000 50,000 47,284 2,716 Geology 100,000 148,000 144,068 3,932 Animal Control 109,000 109,000 94,282 14,718 Total Community Development 3,145,300 2,966,822 2,623,915 342,907 Non-Departmental 1,829,100 1,907,871 1,814,562 93,309 Total Expenditures 26,791,300 26,380,087 24,441,940 1,938,147 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,178,600 2,589,813 5,670,883 3,081,070 OTHER FINANCING SOURCES (USES) Transfers In 230,000 230,000 130,000 (100,000) Transfers Out (1,964,000) (2,170,500) (1,750,819) 419,681 Total Other Financing Sources (Uses) (1,734,000) (1,940,500) (1,620,819) 319,681 NET CHANGE IN FUND BALANCE 444,600 649,313 4,050,064 3,400,751 Fund Balance - Beginning of Year 21,748,709 21,748,709 21,748,709 - FUND BALANCE - END OF YEAR 22,193,309$ 22,398,022$ 25,798,773$ 3,400,751$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL PROPOSITION C SPECIAL REVENUE FUND JUNE 30, 2021 See accompanying Notes to Financial Statements. (28) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 696,200$ 696,200$ 710,280$ 14,080$ Use of Money and Property 6,200 6,200 8,186 1,986 Other Revenues - - 26,000 26,000 Total Revenues 702,400 702,400 744,466 42,066 EXPENDITURES Public Works 650,000 653,827 652,922 905 Capital Outlay 295,000 275,800 106,156 169,644 Total Expenditures 945,000 929,627 759,078 170,549 NET CHANGE IN FUND BALANCE (242,600) (227,227) (14,612) 212,615 Fund Balance - Beginning of Year 579,711 579,711 579,711 - FUND BALANCE - END OF YEAR 337,111$ 352,484$ 565,099$ 212,615$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL STATE GRANTS SPECIAL REVENUE FUND JUNE 30, 2021 See accompanying Notes to Financial Statements. (29) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies -$ -$ 44,849$ 44,849$ EXPENDITURES Public Works - 37,586 37,586 - Capital Outlay - 175,518 11,621 163,897 Total Expenditures - 213,104 49,207 163,897 NET CHANGE IN FUND BALANCE - (213,104) (4,358) 208,746 Fund Deficit - Beginning of Year (214,935) (214,935) (214,935) - FUND BALANCE (DEFICIT) - END OF YEAR (214,935)$ (428,039)$ (219,293)$ 208,746$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2021 See accompanying Notes to Financial Statements. (30) Equipment Replacement Internal Service Fund ASSETS CURRENT ASSETS Cash and Investments 2,607,519$ Receivables: Interest 1,163 Total Current Assets 2,608,682 NONCURRENT ASSETS Capital Assets, Being Depreciated: Property and Equipment 2,515,203 Accumulated Depreciation (2,364,813) Total Noncurrent Assets 150,390 Total Assets 2,759,072 NET POSITION Investment In Capital Assets 150,390 Unrestricted 2,608,682 Total Net Position 2,759,072$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (31) Equipment Replacement Internal Service Fund OPERATING REVENUES Charges for Services 93,600$ OPERATING EXPENSES Materials and Supplies 69,911 Depreciation 128,734 Total Operating Expenses 198,645 OPERATING LOSS (105,045) NONOPERATING REVENUES Investment Income 21,365 CHANGE IN NET POSITION (83,680) Net Position - Beginning of Year 2,842,752 NET POSITION - END OF YEAR 2,759,072$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (32) Equipment Replacement Internal Service Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Interfund Services Provided 93,600$ Payments to Suppliers (80,815) Net Cash Provided by Operating Activities 12,785 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (48,861) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received on Investments 24,912 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (11,164) Cash and Cash Equivalents - Beginning of Year 2,618,683 CASH AND CASH EQUIVALENTS - END OF YEAR 2,607,519$ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Loss (105,045)$ Adjustments to Reconcile Operating Loss to Net Cash Provided by Operating Activities: Depreciation 128,734 Changes in Operating Assets and Liabilities: Decrease in Accounts Payable and Accrued Liabilities (10,904) Net Cash Provided By Operating Activities 12,785$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (33) Successor Agency Private-Purpose Trust Fund ASSETS Cash and Investments 166,633$ Receivables: Interest Receivable 167 Total Assets 166,800 LIABILITIES CURRENT LIABILITIES Current Portion of Noncurrent Liabilities 515,586 Total Current Liabilities 515,586 NONCURRENT LIABILITIES Due Beyond One Year 13,212,882 Total Noncurrent Liabilities 13,212,882 Total Liabilities 13,728,468 Net Position (Deficit) Held in Trust (13,561,668)$ CITY OF RANCHO PALOS VERDES, CALIFORNIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2021 See accompanying Notes to Financial Statements. (34) Successor Agency Private-Purpose Trust Fund ADDITIONS Taxes 640,150$ Use of Money and Property 1,484 Total Additions 641,634 DEDUCTIONS Administration 364,401 Debt Interest and Fiscal Charges 338,336 Total Deductions 702,737 CHANGE IN NET POSITION (61,103) Net Position (Deficit) - Beginning of Year (13,500,565) NET POSITION (DEFICIT) - END OF YEAR (13,561,668)$ (35) THIS PAGE INTENTIONALLY LEFT BLANK NOTES TO FINANCIAL STATEMENTS       CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (36) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Rancho Palos Verdes (the City) conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles. The following is a summary of the significant policies. A. Reporting Entity The reporting entity, “City of Rancho Palos Verdes”, includes the accounts of the City and the Joint Powers Improvement Authority (the Authority). The City was incorporated on September 7, 1973, as a General Law City and operates under a Council/Manager form of government. The City sponsored the formation of a Redevelopment Agency in 1984 pursuant to the State of California Health and Safety Code Section 33000 entitled “Community Redevelopment Law” with a purpose to finance long-term capital improvements designed to eliminate physical and economic blight in a project area through stabilization of hazardous landslides. Effective February 1, 2012, pursuant to state law, the Redevelopment Agency was dissolved and its assets were transferred to a Successor Agency for the purpose of winding down the business of the former Redevelopment Agency (see Note 14). The Successor Agency is a separate legal entity that is a related organization to the City; but is not a component unit, as described more fully below. The Authority was formed on September 4, 1990, in accordance with the provisions of the Reimbursement and Settlement Agreement, dated October 27, 1987, entered into by the City, the former Redevelopment Agency, and the County of Los Angeles (County) in connection with the Horan Lawsuit. The Agreement requires funds to be set aside and expended by the Authority to maintain landslide abatement improvements installed and constructed by the former Redevelopment Agency. The City of Rancho Palos Verdes is the primary government unit. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading. The City has accounted for the Authority as a “blended” component unit. The balances and transactions of the Authority are reported in separate Permanent and Special Revenue Funds; and are included in the government-wide statements. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (37) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued) The following specific criteria were used in determining that the Authority is a “blended” component unit.  The members of the City Council also act as members of the Authority Board.  The Authority is fiscally dependent on the City, and there is potential for the Authority to impose specific financial burdens on the City; as the City subsidizes maintenance operations performed by the Authority and the City is legally liable for facilities maintained by the Authority. Separately issued financial statements for the Authority may be obtained at the City’s administrative offices. The Successor Agency does not meet the criteria for reporting as a component unit, as it is not fiscally dependent on the City. In addition, the business of the Successor Agency must be approved by an independently appointed Oversight Board and the California Department of Finance. Therefore, the balances and transactions of the Successor Agency are reported as a separate Fiduciary Fund (private purpose trust fund), and are not included in the government-wide statements. Participation in Public Entity Jointly Controlled Government The City is a member of the Palos Verdes Peninsula Transit Joint Powers Authority (the Transit Authority). The Transit Authority is comprised of three member cities and is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of the Authority is to study, implement, and provide a public transit system within and around the Palos Verdes Peninsula. These transit services include Palos Verdes Transit, Dial-A-Ride, and a fixed route shuttle service. Periodic deposits are paid by member Cities and are adjusted retrospectively to cover costs. Costs are prorated among all participating Cities based on population. The City does not have an equity interest in the Transit Authority; therefore, no amount has been reported in the statement of net position. However, the City does have an ongoing financial interest because the City is able to influence the operations of the Authority so that the Authority uses its resources on behalf of the City. Also, an ongoing financial responsibility exists because the Authority is dependent on continued funding from the City. The condensed financial information of the Authority has not been reproduced in this report, but is available upon request from the Authority by emailing pvtransit@palosverdes.com or mailing a request to P.O. Box 2656, Palos Verdes Peninsula, CA 90274. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (38) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Description of Funds The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred outflows/inflows, fund equity, revenues, and expenditures. The following are types of funds used. Governmental Fund Types General Fund – Used to account for all financial resources except those that are required to be accounted for in another fund. The financial resources accounted for in the General Fund may be used to fund any City program. Special Revenue Funds – Used to account for the proceeds of specific revenue sources that are restricted by law or administrative action for specified purposes. Capital Projects Funds – Used to account for financial resources used for the construction of specific capital projects. Permanent Funds – Used to account for resources legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs. Proprietary Fund Types Internal Service Funds – Used to centralize the accounting for purchases of equipment, furniture and vehicles on behalf of all City departments, and the accumulation of funds for replacement of certain buildings on behalf of the City. Fiduciary Fund Type Private-Purpose Trust Fund – Used to account for property tax revenue allocated to the Successor Agency and payments of the obligations of the former Redevelopment Agency. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (39) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting/Measurement Focus Government-Wide Financial Statements The City’s Government-Wide Financial Statements include a “Statement of Net Position” and a “Statement of Activities.” These two statements present a summary of Governmental Activities for the City; and do not include fiduciary activities. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources; including capital assets, infrastructure, and long-term debt, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenue transactions for the City are reported in three categories: 1) Charges for Services, 2) Operating Grants and Contributions, and 3) Capital Grants and Contributions. Charges for Services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Operating Grants and Contributions include revenues restricted to meeting the requirements of a particular operating function and may include state shared revenues and grants. Capital Grants and Contributions include revenues restricted to meeting the requirements of a particular capital function and may include grants and developer fees. Taxes and other items not properly included among program revenues are reported instead as general revenues. As a general rule, the effect of inter-fund activity has been eliminated from the Government-Wide Financial Statements. Governmental Fund Financial Statements Governmental fund financial statements include a “Balance Sheet – Governmental Funds” and “Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds” for all major and other governmental funds. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the Net Position presented in the Government-Wide Financial Statements. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the City, except those that are required to be accounted for in another fund. The Proposition C Special Revenue Fund is used to account for sales taxes received from the County of Los Angeles and used to support public transit and related services. The State Grants Special Revenue Fund is used to account for state financial assistance programs. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (40) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting/Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) The City reports the following major governmental funds (continued): The Capital Improvement Capital Projects Fund is used to account for funds used for the City’s capital improvement projects. All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Under the “current financial resources” measurement focus, generally only current assets, current liabilities and deferred inflows are reported on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Revenues are recognized in the accounting period in which they become susceptible to accrual, that is, when they become both measurable and available to finance expenditures of the current period. “Measurable” means that the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Accrued revenues include property taxes received within 60 days after year-end, taxpayer-assessed taxes such as sales taxes, and earnings on investments. Grant funds earned but not received are recorded as a receivable, and grant funds received before the revenue recognition criteria have been met are reported as unearned revenues. Expenditures are recorded when the fund liability is incurred, if measurable, except for interest on general long-term debt that has not yet matured, which is recognized when due. Proprietary Fund Financial Statements Proprietary fund types are accounted for using the “economic resources” measurement focus and accrual basis of accounting. This means that all assets and liabilities (whether current or noncurrent) associated with the activity are included on the balance sheet. Fund equity is presented as total net position. The operating statement of proprietary funds presents increases (revenues) and decreases (expenses) in total net position. Revenues are recognized when they are earned and expenses are recognized when the liability is incurred. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s internal service fund are charges for services. Operating expenses for the internal service fund include the costs of services, employee benefits, maintenance of capital assets, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (41) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting/Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) The City uses an internal service fund to finance and account for goods and services provided by one City department to other City departments, including the purchase and maintenance of equipment. The City’s internal service fund is presented in the proprietary funds financial statements. Because the principal users of the internal services are the City’s governmental activities, the financial statements of the internal service fund are consolidated into the governmental activities column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity (administration, public safety, public works, etc.). Fiduciary Fund Financial Statements The fiduciary private-purpose trust fund type is accounted for using the economic resources measurement focus and accrual basis of accounting similar to the proprietary funds. The City reports the following fiduciary fund. The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency as part of the business of redevelopment dissolution. The Successor Agency private-purpose trust fund accounts for the changes in the former Redevelopment Agency’s assets and liabilities until they are disposed of through dissolution. This fund also accounts for the administrative costs associated with dissolution. D. Budgetary Accounting Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds, except for the Bikeways Special Revenue Fund. All annual appropriations lapse at fiscal year-end. Budget control is maintained over all accounts, and expenditures are not allowed to exceed appropriations at the department level. Throughout the year, the City Council made several budgetary adjustments to the General fund, Special Revenue funds, Capital Projects funds, and Permanent funds. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2021, based on calculations by City Management, the proceeds of taxes in the amount of $25.8 million did not exceed appropriation limit of $32.4 million. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (42) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Capital Assets Capital assets include land, construction in progress, building and improvements, vehicles, computer equipment, furniture, fixtures and equipment, and infrastructure assets (street systems, storm drains, sewer systems, etc.). Capital assets are defined by the City as all land and buildings, vehicles, computers and equipment with an initial individual cost of more than $5,000; and improvements and infrastructure assets with construction costs of more than $100,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated or annexed capital assets are recorded at acquisition value at the date of donation or annexation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation is recorded in the Government-Wide Financial Statements on a straight-line basis over the useful life of the assets as follows: Buildings and Improvements 25 to 50 Years Vehicles, Computers, and Equipment 3 to 10 Years Infrastructure Assets Roadway System 10 to 100 Years Sewer System 25 to 50 Years Storm Drain System 30 to 100 Years Parks System 25 Years F. Employee Compensated Absences City employees may receive from 10 to 20 days of vacation time each year, depending upon length of service. An employee may accumulate earned vacation time up to a maximum of two years’ worth of accrued vacation leave. Upon termination, employees are paid the full value of their unused vacation time at their existing salary. City employees accrue 96 hours of sick leave each year with a maximum accrual of 720 hours. However, unused sick leave is never paid out to the employee upon separation; and therefore, the City does not accrue a liability. The General Fund will primarily be used to liquidate the liability for compensated absences in future years. Any liability for compensated absences is only carried in the General Fund if there is unused/unpaid leave outstanding following an employee’s separation. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (43) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Investments Investments are reported at fair value which is the amount at which financial instruments could be exchanged in a current transaction between willing parties. All fair values are determined by external consultants. Investments are measured at fair value on a recurring basis. Recurring fair value measurements are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. H. Cash and Investments The Equipment Replacement Internal Service Fund participates in the pooling of City- wide cash and investments. Amounts from the pool are available to this fund on demand. Therefore, the cash and investments reported in this fund is considered to be cash and cash equivalents for purpose of the statement of cash flows. I. Claims and Judgments When it is probable that a claim liability has been incurred, and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program. Small claims and judgments are recorded as expenditures when paid. The City’s self-insurance program is administered through the California Joint Powers Authority (the CJPIA), which is described at Note 9. The CJPIA is a public entity risk pool. The City records amounts deposited with CJPIA as insurance expenditures in the General Fund. J. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items using the consumption method. In governmental funds, the prepaid assets recorded do not reflect current appropriable resources and thus, an equivalent portion of fund balance is reported as nonspendable. The City had a total of $1,093,025 of prepaid items as of June 30, 2021. K. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (44) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Net Position and Fund Balance Flow Assumptions When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first. When unrestricted resources (committed, assigned or unassigned) are available for use, it is the City’s policy to use committed resources first, assigned resources second and finally unassigned resources. M. Deferred Inflows and Outflows In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:  Deferred outflows related to pensions equal to employer contributions made after the measurement date of the net pension liability.  Deferred outflows related to pensions for differences between expected and actual experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.  Deferred outflows related to pensions for the net differences between projected and actual earnings on plan investments. These amounts are amortized over five years. In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:  Deferred inflows from unavailable revenues, which are reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from one source: grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.  Deferred inflows related to pensions for changes of assumptions, and for changes in employer’s proportion and differences between employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (45) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. NOTE 2 CASH AND INVESTMENTS Cash and investments as of June 30, 2021, are classified in the accompanying financial statements as follows: Government- Fiduciary Fund Wide Statement of Statement of Fiduciary Net Position Net Position Total Total Cash and Investments 68,494,018$ 166,633$ 68,660,651$ Cash and investments as of June 30, 2021 consist of the following: Petty Cash 5,000$ Deposits with Financial Institutions 2,422,330 Certificates of Deposit 20,780,597 Money Market Mutual Funds 66,570 U.S. Treasury Obligations 5,000,000 Local Agency Investment Fund (LAIF) 40,386,154 Total 68,660,651$ Investments Authorized by the California Government Code and the City of Rancho Palos Verdes’ Investment Policy. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (46) NOTE 2 CASH AND INVESTMENTS (CONTINUED) The table below identifies the investment types that are authorized for the City of Rancho Palos Verdes by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, and concentration of credit risk. Maximum Amount or Maximum Percent of Maximum Authorized Investment Type Maturity Portfolio in One Issuer U.S. Treasury Obligations 3 Years None None Certificates of Deposit 5 Years None None Negotiable Certificates of Deposit 5 Years 30% None Repurchase Agreements 7 Days 15% None Money Market Mutual Funds N/A 15% None Local Agency Investment Fund (LAIF) N/A None None Money Market Savings/Demand Deposits N/A 15% $5 Million Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect fair value of an investment. Generally, the longer the maturity of an investment, there is a greater sensitivity of its fair value to changes in market interest rates. The City manages its exposure to interest rate risk by investing with the Local Agency Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity need for operations. The City’s investment is represented by shares in the pool, which can be withdrawn in one business day. The average maturity of the pool is less than one year. Remaining Maturity Investment Type 0-6 Months 6-12 Months 12-36 Months 36-60 Months Total Certificates of Deposit 3,000,000$ 3,750,000$ 9,280,597$ 4,750,000$ 20,780,597$ Money Market Mutual Funds 66,570 - - - 66,570 U.S. Treasury Obligations 1,000,000 - 1,000,000 3,000,000 5,000,000 Local Agency Investment Fund (LAIF) 40,386,154 - - - 40,386,154 Total 44,452,724$ 3,750,000$ 10,280,597$ 7,750,000$ 66,233,321$ Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The certificates of deposit, and LAIF are not rated. The money market funds are rated AAA. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (47) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Concentration of Credit Risk The investment policy of the City of Rancho Palos Verdes contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City of Rancho Palos Verdes’ investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts, but not in the name of the City. The financial institutions that held the uninsured deposits are legally required by the California Government Code to collateralize the City’s deposits as noted above. Investment in Local Agency Investment Fund (LAIF) The City of Rancho Palos Verdes is a voluntary participant in LAIF that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City of Rancho Palos Verdes’ investment in this pool is based upon the City of Rancho Palos Verdes’ pro-rata share of the fair value provided by LAIF for the entire pool portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is a governmental investment pool managed and directed by the Treasurer of the State of California and is not registered with the Securities and Exchange Commission. An oversight committee comprised of California State officials and various other participants provides oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer’s office. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (48) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Fair Value Classifications The City categorized its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets, Level 3 inputs are significant unobservable inputs. The fair value of the City’s investments in U. S. Treasury Obligations is based on Level 2 inputs. The City’s investments in FDIC-insured certificates of deposits, money market funds and LAIF are not subject to the fair value hierarchy. NOTE 3 INTERFUND TRANSACTIONS Interfund Receivable/Payable The $292,430 due to the General Fund ($201,279 from the State Grants Special Revenue Fund and $91,151 from Other Governmental Funds) is the result of loans to cover temporary deficit cash balances. Interfund Transfers Interfund transfers for the year ended June 30, 2021, consisted of the following: Transfer From Other General Governmental Transfer To Fund Funds Totals General Fund -$ 130,000$ 130,000$ Capital Improvement Projects 1,720,819 - 1,720,819 Other Governmental Funds 30,000 - 30,000 Total 1,750,819$ 130,000$ 1,880,819$ Transfers are used to: (1) move revenues from the fund that statute or budget requires for collection to the fund that statute or budget requires for expenditure; (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations or grant matching requirements; and, (3) return money that was originally transferred from the General Fund to another fund, yet not used. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (49) NOTE 3 INTERFUND TRANSACTIONS (CONTINUED) Interfund Transfers (Continued) The General Fund transferred a total of $1,750,819 to other funds. Of this amount, $1,720,819 was transferred to the Capital Improvement Projects (CIP) Fund as a CIP Reserve for future infrastructure projects, as required by the City Council’s Reserve Policy. The remaining $30,000 was transferred to the following Other Governmental Funds: $20,000 to the Improvement Authority Portuguese Bend to subsidize annual maintenance of landslide mitigation facilities; and, $10,000 to the Subregion 1 Fund to subsidize landscape maintenance. The General Fund received $130,000 from the following Other Governmental Funds: $130,000 from the Public Safety Grants Fund to supplement the special community resource policing team for the deputy cost within the Sheriff program of the public safety section of the budget. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (50) NOTE 4 CAPITAL ASSETS AND DEPRECIATION The City has reported all capital assets including infrastructure in the Government-Wide Statement of Net Position. The City elected to use the basic reporting approach as defined by GASB Statement No. 34 for all infrastructures, whereby depreciation expense and accumulated depreciation has been recorded. The following tables present the capital assets activity for the year ended June 30, 2021. Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets not Being Depreciated: Land 43,528,625$ 14,757$ -$ 43,543,382$ Construction in Progress 4,635,208 3,147,282 (5,039,848) 2,742,642 Total Capital Assets not Being Depreciated 48,163,833 3,162,039 (5,039,848) 46,286,024 Capital Assets Being Depreciated: Building and Improvements 14,281,198 - - 14,281,198 Vehicles 551,328 40,771 - 592,099 Computer Equipment 989,151 - - 989,151 Equipment - Water Quality 11,813 - - 11,813 Furniture, Fixtures, and Equipment 976,224 48,129 - 1,024,353 Infrastructure: Roadway System 121,898,315 4,989,499 - 126,887,814 Sewer System 25,965,995 - - 25,965,995 Storm Drain System 13,682,822 - - 13,682,822 Storm Drain System - Water Quality 36,851,640 - - 36,851,640 Parks System 7,953,213 50,349 - 8,003,562 Total Capital Assets Being Depreciated 223,161,699 5,128,748 - 228,290,447 Less Accumulated Depreciation for: Buildings and Improvements (7,354,194) (266,170) - (7,620,364) Vehicles (447,650) (43,321) - (490,971) Computer Equipment (964,571) (24,579) - (989,150) Equipment - Water Quality (11,813) - - (11,813) Furniture, Fixtures, and Equipment (824,948) (72,472) - (897,420) Infrastructure: Roadway System (69,765,685) (4,412,391) - (74,178,076) Sewer System (21,481,885) (453,781) - (21,935,666) Storm Drain System (5,256,917) (268,481) - (5,525,398) Storm Drain System - Water Quality (4,898,515) (832,576) - (5,731,091) Parks System (2,749,527) (317,244) - (3,066,771) Total Accumulated Depreciation (113,755,705) (6,691,015) - (120,446,720) Total Capital Assets Being Depreciated, Net 109,405,994 (1,562,267) - 107,843,727 Governmental Activities Capital Assets, Net 157,569,827$ 1,599,772$ (5,039,848)$ 154,129,751$ CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (51) NOTE 4 CAPITAL ASSETS AND DEPRECIATION (CONTINUED) Depreciation expense was charged to functions/programs of the primary government as follows: Administration (Depreciation of Buildings and Some Furniture) 277,808$ Public Works (Depreciation of Roadways, Sewers, and Storm Drains) 5,967,229 Parks and Recreation (Depreciation of Parks System) 317,244 Capital Assets Held by the City's Internal Service Funds are Charged to Various Functions Based on their Usage of the Assets 128,734 Total Depreciation Expense - Governmental Activities 6,691,015$ NOTE 5 NOTES RECEIVABLE Notes Receivable Affordable Housing 8,329,351$ Community Development Block Grant 259,791 Subtotal 8,589,142 Receivable from Successor Agency 10,528,468 Allowance from Successor Agency receivable (10,528,468) Total Notes Receivable 8,589,142$ The receivable from the Successor Agency is discussed further in Note 14. Affordable Housing In March 2009, the former Redevelopment Agency (RDA) entered into a Disposition and Development Agreement (DDA) with AMCAL Mirandela Fund LP (AMCAL). Under the DDA, the former RDA provided financial assistance to AMCAL in an amount up to $6,790,000 to develop a thirty-four unit senior housing project. The loan accrues simple interest at a rate of 3% per annum on the amounts disbursed. The note is due December 22, 2065. The balance of note receivable from AMCAL including accrued unpaid interest of $2,058,807 at June 30, 2021 was $8,329,351. In March 2011, the former RDA sold an affordable housing condominium to an individual for $350,000. In connection with the sale, the buyer issued a secured promissory note in the amount of $126,320. The note bears no interest and principal is payable upon default by the owner (or any successors’ owner) under a regulatory agreement that requires the condominium to be occupied by person or families of moderate income. If no such default has occurred by February 22, 2056, the principal will be forgiven. Due to the nature of this loan, the outstanding balance has been offset in full by an allowance for uncollectability. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (52) NOTE 5 NOTES RECEIVABLE (CONTINUED) Affordable Housing (Continued) As part of redevelopment dissolution, these two long-term notes receivable were transferred to the housing successor (the City), which elected to retain the housing assets and function of the former Redevelopment Agency. Community Development Block Grant (CDBG) As part of the City’s CDBG program, the City extends loans to property owners meeting low and moderate income requirements to make repairs and improvements to their homes. These notes receivable bear no interest, and repayment is required when the title to the property is transferred or the property is re-financed. The maximum loan amount per property is $13,000. Amounts repaid are returned to the CDBG program. The total of these loans outstanding at June 30, 2021 is $259,791. NOTE 6 LONG-TERM LIABILITIES Balance Balance Amount Due July 1, 2020 Additions Deletions June 30, 2021 in One Year Employee Compensated Absences 403,201$ 344,135$ (224,248)$ 523,087$ 290,926$ Employee Compensated Absences There is no fixed payment schedule for employee compensated absences. Based on historical trends, $290,926 is estimated to be the amount that will be used and/or paid out during the fiscal year ended June 30, 2021. NOTE 7 CLASSIFICATIONS OF NET POSITION AND FUND BALANCE Government-Wide Financial Statements In the Government-Wide financial statements net position is classified in the following categories: Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation on these assets reduces this category as does any outstanding balance on debt incurred in acquiring or constructing the capital assets. Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributions or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position – This category represents the difference between total net position and the two categories noted above: Net Investment in Capital Assets and Restricted Net Position. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (53) NOTE 7 CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED) Fund Financial Statements The fund balances reported on the fund statements consist of the following categories: Nonspendable – Amounts that are not in a spendable form (such as inventory and prepaid expenditures) or are legally required to be maintained intact (such as the corpus of an endowment fund). Restricted – Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. Committed – Amounts constrained to specific purposes by the City Council via a City Council resolution or ordinance, which are considered to be equally binding. To be reported as committed, amounts cannot be used for any other purpose unless the City Council adopts another resolution to remove or change the constraint. Assigned – Amounts the City Council intends to use for a specific purpose, which is expressed by the City Council via minute order. Unassigned – Amounts that are available for any purpose; these amounts are reported only in the General Fund. However, if there is a deficit fund balance to be reported in any fund, it is classified as unassigned. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (54) NOTE 7 CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED) The City’s governmental fund balances were classified as follows at June 30, 2021: Proposition C State Grants Capital Other General Special Revenue Special Revenue Improvement Governmental Fund Fund Fund Fund Funds Nonspendable: In Form (Inventory and Prepaid Items) 1,141,717$ -$ -$ -$ -$ Legally (Endowment Principal) - - - - 1,926,193 Restricted: Public Works - - - 639,282 3,139,124 Housing and Community Development - - - - 1,184,217 Transportation - 565,099 - - 4,328,264 Parks and Recreation - - - - 1,920,997 Public Safety - - - - 104,205 Committed: Public Works 2,516,647 - - - - City Administration 38,122 - - - - Housing and Community Development 211,240 - - - - Recreation and Parks 18,870 - - - - Assigned: Public Works - - - 25,751,768 - Unassigned: Unrestricted Fund Balance 21,449,377 - (219,293) - - Continued Appropriations 422,800 - - - - Governmental Fund Balance Totals 25,798,773$ 565,099$ (219,293)$ 26,391,050$ 12,603,000$ Nonspendable Fund Balance General Fund assets include $48,692 of inventory held for resale at the Point Vicente Interpretive Center gift shop, and $1,093,025 of prepayments for expenditures related to the fiscal year ended June 30, 2021. The fund balance of the Improvement Authority’s Abalone Cove Permanent Fund includes a $1,000,000 nonspendable endowment, as required by a Reimbursement and Settlement Agreement dated October 27, 1987 in connection with the Horan Lawsuit (discussed further in Note 14). The fund balance of the Subregion One Maintenance Permanent Fund includes a $750,000 nonspendable endowment, as required by the developer agreement for the Subregion One tract. Beginning with the fiscal year ended June 30, 2006, the City’s Natural Communities Conservation Plan requires a nonspendable endowment in the Habitat Restoration Permanent Fund to be funded at the rate of $10,000 annually (plus interest) for fifty (50) years, to provide for maintenance of habitat in the future. The balance of $176,193 represents 15 years of annual $10,000 contributions plus interest earnings. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (55) NOTE 7 CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED) Restricted Fund Balance The restricted balances of the City’s Other Governmental Funds are constrained to use for specific purposes by other governmental agencies, property owners, and grantors. The $639,282 balance of the Capital Improvement Fund is restricted for ongoing improvements for streets, building, parks, trails and open space, and Portuguese Bend’s dewatering wells project. Committed Fund Balance The $2,784,879 balance of the General Fund is committed for ongoing projects approved by the City Council. These projects can only be redesignated to other projects by City Council. Assigned Fund Balance The $25,751,768 balance of the Capital Improvement Projects Fund has been assigned for the planning, design and construction of infrastructure projects. Unassigned Fund Balance City Council Policy No. 41 – Reserve Policies, adopted via resolution, requires the City to maintain a minimum General Fund balance of at least fifty percent of annual operating expenditures. This reserve serves as a Rainy Day Fund with a balance of $21,449,377 at June 30, 2021. City Council approved to carry forward $422,800 of FY 2020-2021 General Fund appropriations to FY 2021-2022. NOTE 8 PENSION AND RETIREMENT HEALTH SAVINGS PLANS Pension Plan Description All qualified permanent and probationary employees are eligible to participate in the City of Rancho Palos Verdes Employee Pension Plan, a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees Retirement System (CalPERS). The CalPERS Plan consists of a miscellaneous pool and a safety pool (referred to as risk pools), which are comprised of individual employer miscellaneous and safety rate plans, respectively. The risk pools are included within the Public Employees’ Retirement Fund C (PERF C). Benefit provisions under the Plan are established by State statute and may be amended by City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provision, assumption and membership information that can be found on the CALPERS website. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (56) NOTE 8 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED) Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations. The Plan’s provisions and benefits in effect for the year ended June 30, 2021, are summarized in the following table. Miscellaneous Classic Tier 1 Classic Tier 2 New Members Prior to Prior to On or after Hire Date January 1, 2013 October 2, 2012 January 1, 2013 Formula 2.5% at 55 2.0% at 60 2.0% at 62 Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 556062 Monthly Benefits, as a % of Annual Compensation 2.50% 2.00% 2.00% Required Employee Contribution Rates 8% 7% 6.75% Required Employer Contributions Rates: Normal Cost Rate 12.361% 8.794% 7.732% Payment of Unfunded Liability 807,431$ 15,360$ 12,410$ Contribution Description Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CALPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (57) NOTE 8 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions The City reported a net pension liability for its proportionate share of the net pension liability of the Miscellaneous Plan as of June 30, 2021, in the amount of $12,925,644. The City’s net pension liability for the Miscellaneous Plan is measured as the proportionate share of the net pension liability of the CALPERS cost sharing pool. The City’s net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Miscellaneous Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Miscellaneous Plan as of the June 30, 2019 and 2020 measurement dates was as follows: Proportion - June 30, 2019 0.29762% Proportion - June 30, 2020 0.30643% Change - Increase (Decrease) 0.00881% CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (58) NOTE 8 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) For the year ended June 30, 2021, the City recognized pension expense of $2,151,002. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Pension Contributions Subsequent to the Measurement Date 1,433,161$ -$ Differences Between Expected and Actual Experience 666,096 - Change of Assumptions - (92,191) Change in Employer's Proportion and Differences Between the Employer's Contributions and the Employer's Proportionate Share of Contributions - (116,423) Net Differences Between Projected and Actual Earnings on Plan Investments 383,977 - Total 2,483,234$ (208,614)$ The amount of $1,433,161 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows or resources related to pensions will be recognized as pension expense as follows: Year Ended June 30, 2021 52,548$ 2022 333,686 2023 271,059 2024 184,166 2025 - Thereafter - Total 841,459$ CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (59) NOTE 8 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED) Actuarial Assumptions The total pension liability for the June 30, 2020 measurement period was determined by an actuarial valuation as of June 30, 2019, with update procedures used to roll forward the total pension liability to June 30, 2020. The total pension liability was based on the following assumptions: Valuation Date June 30, 2019 Measurement Date June 30, 2020 Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Discount Rate 7.15% Inflation 2.50% Salary Increases (1) Mortality Rate Table (2) Post Retirement Benefit Increase (3) (1) Varies by entry age and service (2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates includes 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. (3) The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long term expected rate of return, CalPERS took into account both short term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes expected compound (geometric) returns were calculated over the short term (first 10 years) and the long-term (11+ years) using a building block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short- term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (60) NOTE 8 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED) Long-Term Expected Rate of Return (Continued) The expected real rates of return by asset class are as follows: Assumed Real Return Real Return Asset Years Years Asset Class (a) Allocation 1 - 10 (b) 11+ (c) Global Equity 50.00% 4.80% 5.98% Fixed Income 28.00 1.00% 2.62% Inflation Sensitive 1.00 0.77% 1.81% Private Equity 8.00 6.30% 7.23% Real Assets 13.00 3.75% 4.93% Infrastructure and Forestland 0.00 0.00% 0.00% Liquidity 1.00 0.00% -0.92% Total 100.00% (a) In the CalPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.0% used for this period (c) An expected inflation of 2.92% used for this period Discount Rate The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Discount Current Discount Rate -1% Discount Rate Rate +1% (6.15%) (7.15%) (8.15%) 19,483,632$ 12,925,644$ 7,506,984$ CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (61) NOTE 8 PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED) Pension Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net position is available in a separately issued CalPERS financial report. Payable to the Pension Plan At June 30, 2021, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2021. Retirement Health Savings Plan On November 17, 2009, the City approved the establishment of a defined contribution Retirement Health Savings Plan (the Plan) for its full-time employees. The Plan is a Health Reimbursement Arrangement (HRA) within Sections 105 and 106 of the Internal Revenue Code. The Plan assets are managed in a nontaxable trust as described in Section 501 (c)(9) of the Internal Revenue Code. The City is the Plan Administrator, and utilizes the services of a contracted financial services provider for day-to-day administration of contributions and disbursements. The City has the authority to amend the Plan’s provisions and contribution requirements. The City has no obligation to make contributions to the Plan, but as part of the annual budget process the City may elect to make contributions to the Plan. Employees are required to contribute 1% of their gross wages to their account, which is owned by the employee. During the fiscal year ended June 30, 2021, the City contributed a total of $83,816 to employee accounts. The Plan assets are not an asset of the City. Therefore, only the City’s expense to make contributions to the Plan has been recorded in the General Fund in the City’s financial statements. NOTE 9 LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Rancho Palos Verdes is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the board of directors. The Board operates through a nine-member Executive Committee. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (62) NOTE 9 LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE (CONTINUED) Primary Self-Insurance Programs of the CJPIA Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage is available on the following website: https://cjpia.org/coverage/risk-sharing-pools/. Primary Workers’ Compensation Program Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $750,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2020-2021, the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (63) NOTE 9 LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE (CONTINUED) Purchased Insurance Pollution Legal Liability Insurance The City of Rancho Palos Verdes participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Rancho Palos Verdes. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has a limit of $20 million. Property Insurance The City of Rancho Palos Verdes participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Rancho Palos Verdes property is currently insured according to a schedule of covered property submitted by the City of Rancho Palos Verdes to the Authority. City of Rancho Palos Verdes property currently has all-risk property insurance protection in the amount of $17,795,005. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible. Earthquake and Flood Insurance The City of Rancho Palos Verdes purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Rancho Palos Verdes property currently has earthquake protection in the amount of $16,970,905. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Crime Insurance The City of Rancho Palos Verdes purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-2021. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (64) NOTE 10 CONTINGENCIES AND COMMITMENTS Litigation In the normal course of operations, the City has been named as a defendant in various claims and legal actions. Generally, unfavorable results of these claims and legal actions are funded through the City’s participation in California Joint Powers Insurance Authority (CJPIA, see Note 9) and, as such, the City believes that the ultimate liability for these legal actions and claims will not have a material adverse effect on the City’s financial statements. The City is also a defendant in legal actions for which the potential losses would not be covered through participation in CJPIA. NOTE 11 PROPERTY TAXES Under California law, property taxes are assessed and collected by the counties up to one percent of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes, which are received from the county within sixty days after year-end. Lien Date January 1 Levy Date June 30 Due Date November 1 and February 1 Collection Dates December 10 and April 10 NOTE 12 UNAVAILABLE REVENUES The unavailable revenues in the fund financial statements of the City of Rancho Palos Verdes as of June 30, 2021 are presented in the following table. Revenue Measurable but Not Available (beyond 60 days): Other Governmental Funds 467,316$ Total Unavailable Revenues 467,316$ CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (65) NOTE 13 OTHER REQUIRED FUND DISCLOSURES The following department’s budget had expenditures in excess of the budget for the year ended June 30, 2021, as follows: Program Budget Expenditures Excess Other Governmental Funds: Prop A Special Revenue Fund: Public Works 1,307,441$ 1,338,031$ 30,590$ Subregion One Permanent Fund: Public Works 41,600 42,115 515 The State Grants Special Revenue Fund has a deficit fund balance of $219,293 at June 30, 2021. This deficit will be eliminated by recognition of revenue not available as of year-end and through transfers from other funds. The Successor Agency Private-Purpose Trust Fund has a deficit fiduciary net position at June 30, 2021 of $13,561,668 which will be reduced by collection of future tax revenues. NOTE 14 SUCCESSOR AGENCY Under the Dissolution Act, each California redevelopment agency (each a Dissolved RDA) was dissolved as of February 1, 2012. A Successor Agency was created for each Dissolved RDA which is the sponsoring community of the Dissolved RDA unless it elected not to serve as the Successor Agency. On September 6, 2011, the City elected to serve as the Successor Agency of the Rancho Palos Verdes Redevelopment Agency. Debt Summary Balance Balance Amounts Due July 1, 2020 Additions Deletions June 30, 2021 in One Year Due to City: Portuguese Bend 7,166,465$ 109,045$ (194,238)$ 7,081,272$ 109,045$ Abalone Cove 3,490,244 61,541 (104,589) 3,447,196 61,541 Due to County: Tax Increment Bond 3,510,000 - (310,000) 3,200,000 345,000 Totals 14,166,709$ 170,586$ (608,827)$ 13,728,468$ 515,586$ CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (66) NOTE 14 SUCCESSOR AGENCY (CONTINUED) Consolidated Loan from City The City entered into an agreement to provide the former Redevelopment Agency (RDA) operating funds and staff assistance, supplies, technical and other services and facilities of the City as the RDA required in carrying out its function under the community redevelopment law. The former RDA was to repay the resulting indebtedness, plus interest, from incremental property tax revenues arising from the project area, as such revenue became available. Pursuant to redevelopment dissolution law, loans from cities to redevelopment agencies made more than two years after formation of the redevelopment agency are not recognized obligations. Therefore, the Consolidated Loan from the City has been previously disallowed on the Successor Agency’s Recognized Obligation Payment Schedule (ROPS). However, AB1484 provides a method to secure recognition of the City’s Consolidated Loan as an obligation of the Successor Agency. Upon completion of various independent reviews and transfers of funds to Los Angeles County, the Successor Agency received a “Finding of Completion” on April 26, 2013. On December 11, 2013, the Oversight Board made a finding that the Consolidated Loan from the City was made for legitimate redevelopment purposes. As required by dissolution law, twenty percent of the amount available will be deposited into the City’s Low-Moderate Income Housing Fund. On September 22, 2015, Governor Brown signed legislation that became effective immediately. The legislation requires accrued interest on city loans to be recalculated using a simple interest rate of 3%. Previously, accrued interest on the City’s loan was calculated using historical Local Agency Investment Fund (LAIF) rates. At June 30, 2021, using the simple interest rate of 3%, the loan balance is $10,528,468. Principal Interest Balance Portuguese Bend 3,634,840$ 3,446,432$ 7,081,272$ Abalone Cove 2,051,377 1,395,819 3,447,196 Allowance from Successor Agency Receivable (5,686,217) (4,842,251) (10,528,468) Totals -$ -$ -$ Due to the uncertainty of Redevelopment Property Tax Trust Fund revenue available for future loan repayments, the City’s loan receivable of $10,528,468 has been completely offset with an allowance for uncollectable amounts on the City’s financial statements. Tax Increment Bond and Deferred Interest Payable In July 1991, the former Redevelopment Agency received $10,000,000 in loan proceeds (the Loan) from the County of Los Angeles (the County) upon the County’s issue of Abalone Cove Improvement Bonds 2651-M pursuant to a Reimbursement and Settlement Agreement (the Agreement), dated October 27, 1987 in connection with the Horan Lawsuit. The Loan was made for the purpose of abating the Abalone Cove landslide. The settlement Loan was secured by property assessment liens in the Abalone Cove project area. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (67) NOTE 14 SUCCESSOR AGENCY (CONTINUED) Tax Increment Bond and Deferred Interest Payable (Continued) As stipulated by the parties to the Agreement, a portion of the Loan proceeds was used to repay a tax allocation and revenue anticipation promissory note issued to the County in the principal amount of $1,450,000, plus accrued interest equal to $179,244. A second portion of the proceeds was used to repay expenses advanced by the County in the amount of $135,614. A third portion was used to repay certain loans from the City to the former Redevelopment Agency in the amount of $787,340. Per the terms of the Agreement, $1,000,000 of the proceeds was deposited in the Abalone Cove Permanent Fund of the Joint Powers Improvement Authority. The remainder of the proceeds was accounted for in the former Redevelopment Agency’s Abalone Cove Fund. Concurrent with the execution of the Agreement, the County deeded its title in the Abalone Cove Beach Park to the former Redevelopment Agency. As part of the Agreement, the former Redevelopment Agency was required to transfer 17% of tax increment revenue to the Consolidated Fire Protection District of the County and 50.9% of tax increment revenue for debt repayment to the County. In accordance with the Agreement, the former Redevelopment Agency was to pay the Loan principal plus interest at 7.7654% over a 30-year period that began in 1992. However, these debt payments were to be deferred 10 years until the fiscal year ended June 30, 2002. As part of the deferral arrangement, the accrued interest from the inception of the Loan through June 30, 2002, in the amount of $7,314,944, was scheduled for payment over a 20- year period beginning in the fiscal year ended June 30, 2002 with no additional interest. The remaining balance of $10,274,119 was scheduled for payment to the County over a 20-year period beginning in the fiscal year ended June 30, 2002, with interest at 7.7654%. On November 1, 1997, the City, the former Redevelopment Agency and the County of Los Angeles entered into a Memorandum of Understanding (MOU) agreeing to restructure the repayment schedule of the debt owed to the County by the former Redevelopment Agency. In accordance with the terms of the MOU, the $10,000,000 loan principal owed to the County was cancelled. As consideration for the loan cancellation, the former Redevelopment Agency made a lump sum payment to the County in the amount of $4,545,000 and issued a $5,455,000 tax increment bond to the County (the bond). Of the $4,545,000 lump sum payment, $2,000,000 was paid from tax increment revenue and interest earnings accumulated in the Debt Service Fund. The remaining $2,545,000 was funded by a combination of a loan from the General Fund of the City to the Agency for $1,545,000 and a net operating transfer from the Agency’s Abalone Cove Capital Projects Fund to the Debt Service Fund of $1,000,000. The private property liens resulting from the formation of the bond assessment district in connection with the Reimbursement and Settlement Agreement in 1987 were discharged in accordance with the terms of the MOU. CITY OF RANCHO PALOS VERDES, CALIFORNIA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 (68) NOTE 14 SUCCESSOR AGENCY (CONTINUED) Tax Increment Bond and Deferred Interest Payable (Continued) The bond was issued as a conduit through the Improvement Authority to the County. No issuance costs were incurred. Future allocations of property tax to the Successor Agency will fund the payment of the bond debt and the deferred interest from the original Loan until paid in full. The principal of the bond began maturing in installments each December 2nd, commencing December 2, 2004. Interest accrues at a rate of 5% per annum and is payable in arrears each June 2nd and December 2nd. Additionally, both the accrued interest and deferred interest on the $10,000,000 Loan previously owed the County was retroactively recalculated from the Loan origination date at a rate of approximately 5% compared to 7.7654% per the original Agreement. The recalculated deferred interest was $3,111,400. In accordance with the MOU, the recalculated deferred interest does not accrue additional interest. As of June 30, 2014, the balance of the deferred interest debt has been completely repaid. The California Department of Finance has approved the Tax Increment Bond and Deferred Interest Payable as obligations of the Successor Agency. The debt service schedule below summarizes all fixed principal and interest payments for the term of the bond. Because the payback period for the deferred interest amount will fluctuate depending on the availability of excess property tax revenue, no amounts have been included in the following schedule for repayment of the deferred interest. Year Ending June 30,Principal Interest Total 2021 345,000$ 151,375$ 496,375$ 2022 380,000 133,250 513,250 2023 415,000 113,375 528,375 2024 450,000 91,750 541,750 2025 495,000 68,125 563,125 2026 - 2028 1,115,000 56,875 1,171,875 Totals 3,200,000$ 614,750$ 3,814,750$ (69) THIS PAGE INTENTIONALLY LEFT BLANK REQUIRED SUPPLEMENTARY INFORMATION       CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST TEN FISCAL YEARS * YEAR ENDED JUNE 30, 2021 (70) Miscellaneous Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plan's Proportion of the Net Pension Liability 0.30643% 0.29762% 0.28980% 0.28221% 0.27708% 0.28237% 0.09183% Plan's Proportionate Share of the Net Pension Liability 12,925,644$ 11,918,073$ 10,921,840$ 11,124,689$ 9,625,397$ 7,637,567$ 5,714,320$ Plan's Covered Payroll 6,454,856$ 6,697,322$ 6,360,881$ 6,124,374$ 5,997,450$ 5,673,471$ 5,609,006$ Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 200.25% 177.95% 171.70% 181.65% 160.49% 134.62% 101.88% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 73.77% 75.26% 75.26% 73.31% 74.06% 78.40% 76.48% Plan's Proportionate Share of Aggregate Employer Contributions 1,624,308$ 1,440,684$ 1,235,073$ 1,096,042$ 998,812$ 919,858$ NA Notes to Schedule: Benefit Changes: There were no changes in benefits. Changes in Assumptions: From Fiscal Year June 30, 2015 to June 30, 2016: GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense. From Fiscal Year June 30, 2016 to June 30, 2017: There were no changes in assumptions. From Fiscal Year June 30, 2017 to June 30, 2018: The discount rate was reduced from 7.65% to 7.15%. From Fiscal Year June 30, 2018 to June 30, 2019: There were no changes in assumptions. From Fiscal Year June 30, 2019 to June 30, 2020: There were no changes in assumptions. * Fiscal year 2015 was the first year of implementation, therefore only seven years are shown. CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF PENSION CONTRIBUTIONS LAST TEN FISCAL YEARS * YEAR ENDED JUNE 30, 2021 (71) Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually Required Contribution (Actuarially Determined) 1,433,161$ 1,265,361$ 1,153,245$ 990,670$ 910,177$ 830,645$ 725,496$ Contributions in Relation to the Actuarially Determined Contributions (1,433,161) (1,265,361) (1,153,245) (990,670) (910,177) (830,645) (725,496) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ -$ Covered Payroll 6,513,032$ 6,454,856$ 6,697,322$ 6,360,881$ 6,124,374$ 5,997,450$ 5,673,471$ Contributions as a Percentage of Covered Payroll 22.00% 19.60% 17.22% 15.57% 14.86% 13.85% 12.79% Notes to Schedule: Valuation Date 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) (1) (1) Asset Valuation Method Market Value Market Value Market Value Market Value Market Value Market Value 15 Year Smoothed Market Method Inflation 2.500% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) (2) (2) Investment Rate of Return 7.00% (3) 7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) (4) (4) Mortality (5) (5) (5) (5) (5) (5) (5) (1) Level percentage of payroll, closed (2) Depending on age, service, and type of employment (3) Net of pension plan investment expense, including inflation (4) 55 for Tier 1, 60 for Classic Tier 2, and 62 for PEPRA members (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board. * Fiscal year 2015 was the first year of implementation, therefore only seven years are shown. SUPPLEMENTARY INFORMATION       CITY OF RANCHO PALOS VERDES, CALIFORNIA DESCRIPTION OF SPECIAL REVENUE FUNDS JUNE 30, 2021 (72) Special Revenue Fund Descriptions Special Revenue Funds are used to account for taxes and other revenues set aside in accordance with law or administrative regulation for a specific purpose. Gas Tax Fund – To account for state-shared highway users’ tax that is restricted to use for street maintenance, right of-way acquisition and street construction. 1972 Act Landscaping and Lighting District (1972 Act) – To account for revenues and costs associated with the City’s landscaping and lighting district. El Prado – To account for taxes collected to maintain and service existing and proposed improvements to the common area of the El Prado neighborhood. 1911 Act Lighting District (1911 Act) – To account for revenue and costs associated with a lighting district transferred to the “city-side” landscape and lighting district from the County in 1995. Waste Reduction – To account for AB939 fees received for state mandated waste reduction and recycling plans and program. Air Quality Management – To account for AB2766 fees received to fund programs to reduce air pollution from motor vehicles. Proposition A – To account for the City share of an additional one-half percent sales tax designated to fund certain public transportation oriented projects. Public Safety Grants – To account for federal grant funds for local law enforcement supplemental services, AB3229 funds used for additional law enforcement services and public safety technology equipment. Measure R – To account for the half-cent sales tax approved by the Los Angeles County voters in November 2008 to meet transportation needs, including maintenance and improvement of arterial streets, traffic control, bikeway and pedestrian improvements, and public transit. Measure A – To account of the voter approved 1992 and 1996 Measure A funds and other state and county grants used for the acquisition of open space and park improvements. Measure M – To account for the half-cent sales tax and continued half-cent relief tax partially distributed to cities approved by the Los Angeles County voters in November 2016 to fund transportation needs. Measure W – To account for the City’s share of the California parcel tax increase of $0.025 per square foot of impermeable property for funding projects in accordance with the expenditure plan pursuant to the Los Angeles Region, Safe, Clean Water Program Projects. Abalone Cove Sewer Assessment – To account for property assessments used to partially pay for operation and maintenance of the Abalone Cove sewer system. Donor-Restricted Contributions – To account for donations received to construct or acquire recreational facilities within the City. CITY OF RANCHO PALOS VERDES, CALIFORNIA DESCRIPTION OF SPECIAL REVENUE FUNDS JUNE 30, 2021 (73) Special Revenue Fund Descriptions (Continued) Joint Powers Improvement Authority - Portuguese Bend – To account for maintenance and repairs of landslide abatement improvements in the Portuguese Bend Project area. Community Development Block Grant – To account for federal grants received from the Department of Housing and Urban Development. Quimby – To account for developer paid fees or the dedication of land for park and recreation purposes. Environmental Excise Tax – To account for taxes received in connection with new construction within the City. Bikeways – To account for state funds that are used for the construction of bikeways and pedestrian facilities. Capital Projects Fund Descriptions Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities. Low-Moderate Income Housing – To account for low and moderate income housing assets that were transferred to the City after electing to retain the housing assets and function of the former redevelopment agency, which was dissolved on January 31, 2012. Affordable Housing In-Lieu - to account for developer fees paid in-lieu of providing affordable housing in conjunction with new development as required by the Affordable Housing Chapter of the City’s Municipal Code (Chapter 17.11). Permanent Fund Descriptions Permanent Funds are used to account for resources legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs. Habitat Restoration – To account for fees paid by developers for conservation easements to be used exclusively for habitat restoration efforts on City owned property. The Habitat Restoration Fund to be funded at the rate of $10,000 annually (plus interest) for fifty (50) years, to provide for maintenance of habitat in the future. Sub-region One Maintenance – To account for monies used to maintain public improvements and habitat areas dedicated to the City upon completion of the Sub-region One residential development project also known as Oceanfront Estates. As part of the development agreement, the City received a $750,000 nonexpendable deposit. The interest earnings contribute to the maintenance of the public open space. Joint Powers Improvement Authority – Abalone Cove – To account for monies received as part of a July 1991 Reimbursement and Settlement Agreement with the County of Los Angeles. As part of this Agreement, the Authority received a $1,000,000 nonexpendable deposit. The interest earnings are used to pay for maintenance and repair of Abalone Cove landslide abatement improvements. CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS JUNE 30, 2021 (74) Gas Waste Tax 1972 Act El Prado 1911 Act Reduction ASSETS Cash and Investments 683,458$ 29,112$ 39,435$ 1,683,826$ 429,496$ Receivables: Taxes - - 84 21,740 - Interest 265 13 18 771 187 Notes - - - - - Other 140,978 - - - 14,401 Total Assets 824,701$ 29,125$ 39,537$ 1,706,337$ 444,084$ LIABILITIES Accounts Payable and Accrued Liabilities 166,924$ -$ -$ 291,898$ 7,000$ Due to Other Funds - - - - - Retentions Payable 43,016 - - 13,776 - Total Liabilities 209,940 - - 305,674 7,000 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - - - FUND BALANCES Nonspendable: Endowment Principal - - - - - Restricted 614,761 29,125 39,537 1,400,663 437,084 Total Fund Balances 614,761 29,125 39,537 1,400,663 437,084 Total Liabilities, Deferred Inflows, and Fund Balances 824,701$ 29,125$ 39,537$ 1,706,337$ 444,084$ Special Revenue Funds CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING BALANCE SHEET (CONTINUED) OTHER GOVERNMENTAL FUNDS JUNE 30, 2021 (75) ASSETS Cash and Investments Receivables: Taxes Interest Notes Other Total Assets LIABILITIES Accounts Payable and Accrued Liabilities Due to Other Funds Retentions Payable Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue FUND BALANCES Nonspendable: Endowment Principal Restricted Total Fund Balances Total Liabilities, Deferred Inflows, and Fund Balances Air Public Quality Safety Management Proposition A Grants Measure R Measure A 143,452$ 1,556,569$ 104,149$ 1,417,767$ 61,436$ - - - - - 65 666 56 616 - - - - - - 13,856 - - - 52,632 157,373$ 1,557,235$ 104,205$ 1,418,383$ 114,068$ 4,750$ 7,897$ -$ 36,765$ -$ - - - - - - - - 358 - 4,750 7,897 - 37,123 - - - - - 52,632 - - - - - 152,623 1,549,338 104,205 1,381,260 61,436 152,623 1,549,338 104,205 1,381,260 61,436 157,373$ 1,557,235$ 104,205$ 1,418,383$ 114,068$ Special Revenue Funds (Continued) CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING BALANCE SHEET (CONTINUED) OTHER GOVERNMENTAL FUNDS JUNE 30, 2021 (76) ASSETS Cash and Investments Receivables: Taxes Interest Notes Other Total Assets LIABILITIES Accounts Payable and Accrued Liabilities Due to Other Funds Retentions Payable Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue FUND BALANCES Nonspendable: Endowment Principal Restricted Total Fund Balances Total Liabilities, Deferred Inflows, and Fund Balances Joint Powers Improvement Abalone Cove Donor Authority Sewer Restricted Portuguese Measure M Measure W Assessment Contributions Bend 364,658$ -$ 249,079$ 779,404$ 60,026$ - - - - - 148 - 113 349 55 - - - - - - 679,381 2,131 - - 364,806$ 679,381$ 251,323$ 779,753$ 60,081$ 73,328$ 96,799$ 33,202$ 1,212$ 639$ - 91,155 - - - - - - - - 73,328 187,954 33,202 1,212 639 - - - - - - - - - - 291,478 491,427 218,121 778,541 59,442 291,478 491,427 218,121 778,541 59,442 364,806$ 679,381$ 251,323$ 779,753$ 60,081$ Special Revenue Funds (Continued) CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING BALANCE SHEET (CONTINUED) OTHER GOVERNMENTAL FUNDS JUNE 30, 2021 (77) ASSETS Cash and Investments Receivables: Taxes Interest Notes Other Total Assets LIABILITIES Accounts Payable and Accrued Liabilities Due to Other Funds Retentions Payable Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue FUND BALANCES Nonspendable: Endowment Principal Restricted Total Fund Balances Total Liabilities, Deferred Inflows, and Fund Balances Community Total Development Special Block Grant Environmental Revenue (CDBG) Quimby Excise Tax Bikeways Funds 22,908$ 1,164,489$ 221,381$ -$ 9,010,645$ - - - - 21,824 - 519 101 - 3,942 - - - - - 23,688 - - - 927,067 46,596$ 1,165,008$ 221,482$ -$ 9,963,478$ 18,143$ 83,988$ 12,124$ -$ 834,669$ - - - - 91,155 - - - 57,150 18,143 83,988 12,124 - 982,974 3,778 - - - 56,410 - - - - - 24,675 1,081,020 209,358 - 8,924,094 24,675 1,081,020 209,358 - 8,924,094 46,596$ 1,165,008$ 221,482$ -$ 9,963,478$ Special Revenue Funds (Continued) CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING BALANCE SHEET (CONTINUED) OTHER GOVERNMENTAL FUNDS JUNE 30, 2021 (78) ASSETS Cash and Investments Receivables: Taxes Interest Notes Other Total Assets LIABILITIES Accounts Payable and Accrued Liabilities Due to Other Funds Retentions Payable Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue FUND BALANCES Nonspendable: Endowment Principal Restricted Total Fund Balances Total Liabilities, Deferred Inflows, and Fund Balances Total Low-Moderate Affordable Capital Income Housing Projects Housing In-lieu Funds 283,731$ 875,319$ 1,159,050$ - - - 100 392 492 - - - - - - 283,831$ 875,711$ 1,159,542$ -$ -$ -$ - - - - - - - - - - - - - - - 283,831 875,711 1,159,542 283,831 875,711 1,159,542 283,831$ 875,711$ 1,159,542$ Capital Projects Funds CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING BALANCE SHEET (CONTINUED) OTHER GOVERNMENTAL FUNDS JUNE 30, 2021 (79) ASSETS Cash and Investments Receivables: Taxes Interest Notes Other Total Assets LIABILITIES Accounts Payable and Accrued Liabilities Due to Other Funds Retentions Payable Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue FUND BALANCES Nonspendable: Endowment Principal Restricted Total Fund Balances Total Liabilities, Deferred Inflows, and Fund Balances Joint Powers Total Subregion Improvement Total Other Habitat One Authority Permanent Governmental Restoration Maintenance Abalone Cove Funds Funds 667,670$ 751,549$ 1,107,929$ 2,527,148$ 12,696,843$ - - - - 21,824 302 338 965 1,605 6,039 - - - - - - - - - 927,067 667,972$ 751,887$ 1,108,894$ 2,528,753$ 13,651,773$ -$ 6,472$ 2,917$ 9,389$ 844,058$ - - - - 91,155 - - - - 57,150 - 6,472 2,917 9,389 992,363 - - - - 56,410 176,193 750,000 1,000,000 1,926,193 1,926,193 491,779 (4,585) 105,977 593,171 10,676,807 667,972 745,415 1,105,977 2,519,364 12,603,000 667,972$ 751,887$ 1,108,894$ 2,528,753$ 13,651,773$ Permanent Funds CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 (80) Gas Waste Tax 1972 Act El Prado 1911 Act Reduction REVENUES Taxes -$ -$ 2,971$ 769,945$ -$ Revenue from Other Agencies 1,682,325 - - - 15,952 Charges for Services - - - - 187,231 Use of Money and Property 5,547 240 311 12,911 3,607 Other Revenues - - - - - Total Revenues 1,687,872 240 3,282 782,856 206,790 EXPENDITURES Current: Public Works 976,917 - - 460,560 224,460 Parks and Recreation - - - - - Capital Outlay 1,622,430 - - 368,410 - Total Expenditures 2,599,347 - - 828,970 224,460 Excess (Deficiency) of Revenues Over (Under) Expenditures (911,475) 240 3,282 (46,114) (17,670) OTHER FINANCING SOURCES (USES) Transfers In - - - - - Transfers Out - - - - - Total Other Financing Sources (Uses) - - - - - NET CHANGE IN FUND BALANCES (911,475) 240 3,282 (46,114) (17,670) Fund Balances - Beginning of Year 1,526,236 28,885 36,255 1,446,777 454,754 FUND BALANCES - END OF YEAR 614,761$ 29,125$ 39,537$ 1,400,663$ 437,084$ Special Revenue Funds CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED) OTHER GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 (81) REVENUES Taxes Revenue from Other Agencies Charges for Services Use of Money and Property Other Revenues Total Revenues EXPENDITURES Current: Public Works Parks and Recreation Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balances - Beginning of Year FUND BALANCES - END OF YEAR Air Public Quality Safety Management Proposition A Grants Measure R Measure A -$ -$ -$ -$ -$ 54,492 856,312 156,727 533,448 - - - - - - 1,208 13,626 1,058 11,186 152 - - - - - 55,700 869,938 157,785 544,634 152 55,839 912,061 - 427,415 - - - - - - - 425,970 - - - 55,839 1,338,031 - 427,415 - (139) (468,093) 157,785 117,219 152 - - - - - - - (130,000) - - - - (130,000) - - (139) (468,093) 27,785 117,219 152 152,762 2,017,431 76,420 1,264,041 61,284 152,623$ 1,549,338$ 104,205$ 1,381,260$ 61,436$ Special Revenue Funds (Continued) CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED) OTHER GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 (82) REVENUES Taxes Revenue from Other Agencies Charges for Services Use of Money and Property Other Revenues Total Revenues EXPENDITURES Current: Public Works Parks and Recreation Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balances - Beginning of Year FUND BALANCES - END OF YEAR Joint Powers Improvement Abalone Cove Donor Authority Sewer Restricted Portuguese Measure M Measure W Assessment Contributions Bend -$ -$ 51,980$ -$ -$ 604,417 679,381 - - - - - - - - 2,242 - 2,045 6,495 425 - - - 16,700 - 606,659 679,381 54,025 23,195 425 414,190 187,954 94,903 15,778 45,051 - - - 10,830 - - - - - - 414,190 187,954 94,903 26,608 45,051 192,469 491,427 (40,878) (3,413) (44,626) - - - - 20,000 - - - - - - - - - 20,000 192,469 491,427 (40,878) (3,413) (24,626) 99,009 - 258,999 781,954 84,068 291,478$ 491,427$ 218,121$ 778,541$ 59,442$ Special Revenue Funds (Continued) CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED) OTHER GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 (83) REVENUES Taxes Revenue from Other Agencies Charges for Services Use of Money and Property Other Revenues Total Revenues EXPENDITURES Current: Public Works Parks and Recreation Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balances - Beginning of Year FUND BALANCES - END OF YEAR Community Total Development Special Block Grant Environmental Revenue (CDBG) Quimby Excise Tax Bikeways Funds -$ -$ -$ -$ 824,896$ 28,564 - - 511 4,612,129 - - - - 187,231 - 9,861 2,275 - 73,189 - 23,652 3,902 - 44,254 28,564 33,513 6,177 511 5,741,699 29,906 130,863 143,634 511 4,120,042 - - - - 10,830 - - - - 2,416,810 29,906 130,863 143,634 511 6,547,682 (1,342) (97,350) (137,457) - (805,983) - - - - 20,000 - - - - (130,000) - - - - (110,000) (1,342) (97,350) (137,457) - (915,983) 26,017 1,178,370 346,815 - 9,840,077 24,675$ 1,081,020$ 209,358$ -$ 8,924,094$ Special Revenue Funds (Continued) CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED) OTHER GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 (84) REVENUES Taxes Revenue from Other Agencies Charges for Services Use of Money and Property Other Revenues Total Revenues EXPENDITURES Current: Public Works Parks and Recreation Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balances - Beginning of Year FUND BALANCES - END OF YEAR Total Low-Moderate Affordable Capital Income Housing Projects Housing In-lieu Funds 59,765$ -$ 59,765$ - - - - - - 1,845 7,142 8,987 - 12,441 12,441 61,610 19,583 81,193 - - - - - - - - - - - - 61,610 19,583 81,193 - - - - - - - - - 61,610 19,583 81,193 222,221 856,128 1,078,349 283,831$ 875,711$ 1,159,542$ Capital Projects Funds CITY OF RANCHO PALOS VERDES, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED) OTHER GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 (85) REVENUES Taxes Revenue from Other Agencies Charges for Services Use of Money and Property Other Revenues Total Revenues EXPENDITURES Current: Public Works Parks and Recreation Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balances - Beginning of Year FUND BALANCES - END OF YEAR Joint Powers Total Subregion Improvement Total Other Habitat One Authority Permanent Governmental Restoration Maintenance Abalone Cove Funds Funds -$ -$ -$ -$ 884,661$ - - - - 4,612,129 - - - - 187,231 6,092 6,298 6,309 18,699 100,875 - - - - 56,695 6,092 6,298 6,309 18,699 5,841,591 153,618 42,115 28,694 224,427 4,344,469 - - - - 10,830 - - - - 2,416,810 153,618 42,115 28,694 224,427 6,772,109 (147,526) (35,817) (22,385) (205,728) (930,518) - 10,000 - 10,000 30,000 - - - - (130,000) - 10,000 - 10,000 (100,000) (147,526) (25,817) (22,385) (195,728) (1,030,518) 815,498 771,232 1,128,362 2,715,092 13,633,518 667,972$ 745,415$ 1,105,977$ 2,519,364$ 12,603,000$ Permanent Funds CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GAS TAX SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (86) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 1,418,000$ 1,418,000$ 1,682,325$ 264,325$ Use of Money and Property 5,400 5,400 5,547 147 Other Revenues 38,600 38,600 - (38,600) Total Revenues 1,462,000 1,462,000 1,687,872 225,872 EXPENDITURES Public Works: Street Pavement Maintenance 235,000 235,000 197,753 37,247 Street Landscape Maintenance 842,000 1,024,729 739,823 284,906 Traffic Signal Maintenance - - 23,903 (23,903) Portuguese Bend Road Maintenance 70,000 70,000 15,438 54,562 Capital Outlay - 1,692,729 1,622,430 70,299 Total Expenditures 1,147,000 3,022,458 2,599,347 423,111 NET CHANGE IN FUND BALANCE 315,000 (1,560,458) (911,475) 648,983 Fund Balance - Beginning of Year 1,526,236 1,526,236 1,526,236 - FUND BALANCE - END OF YEAR 1,841,236$ (34,222)$ 614,761$ 648,983$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL 1972 ACT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (87) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property -$ -$ 240$ 240$ NET CHANGE IN FUND BALANCE - - 240 240 Fund Balance - Beginning of Year 28,885 28,885 28,885 - FUND BALANCE - END OF YEAR 28,885$ 28,885$ 29,125$ 240$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL EL PRADO SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (88) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes 2,300$ 2,300$ 2,971$ 671$ Use of Money and Property 200 200 311 111 Total Revenues 2,500 2,500 3,282 782 EXPENDITURES Public Works 800 800 - 800 NET CHANGE IN FUND BALANCE 1,700 1,700 3,282 1,582 Fund Balance - Beginning of Year 36,255 36,255 36,255 - FUND BALANCE - END OF YEAR 37,955$ 37,955$ 39,537$ 1,582$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL 1911 ACT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (89) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes 606,800$ 606,800$ 769,945$ 163,145$ Use of Money and Property 21,400 21,400 12,911 (8,489) Total Revenues 628,200 628,200 782,856 154,656 EXPENDITURES Public Works 462,200 913,440 460,560 452,880 Capital Outlay - 408,540 368,410 40,130 Total Expenditures 462,200 1,321,979 828,970 493,009 NET CHANGE IN FUND BALANCE 166,000 (693,779) (46,114) 647,665 Fund Balance - Beginning of Year 1,446,777 1,446,777 1,446,777 - FUND BALANCE - END OF YEAR 1,612,777$ 752,998$ 1,400,663$ 647,665$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL WASTE REDUCTION SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (90) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 22,100$ 22,100$ 15,952$ (6,148)$ Charges for Services 104,300 104,300 187,231 82,931 Use of Money and Property 4,600 4,600 3,607 (993) Total Revenues 131,000 131,000 206,790 75,790 EXPENDITURES Public Works 287,500 287,500 224,460 63,040 NET CHANGE IN FUND BALANCE (156,500) (156,500) (17,670) 138,830 Fund Balance - Beginning of Year 454,754 454,754 454,754 - FUND BALANCE - END OF YEAR 298,254$ 298,254$ 437,084$ 138,830$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AIR QUALITY MANAGEMENT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (91) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 50,000$ 50,000$ 54,492$ 4,492$ Use of Money and Property 5,000 5,000 1,208 (3,792) Total Revenues 55,000 55,000 55,700 700 EXPENDITURES Public Works 57,000 57,000 55,839 1,161 NET CHANGE IN FUND BALANCE (2,000) (2,000) (139) 1,861 Fund Balance - Beginning of Year 152,762 152,762 152,762 - FUND BALANCE - END OF YEAR 150,762$ 150,762$ 152,623$ 1,861$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PROPOSITION A SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (92) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 839,400$ 839,400$ 856,312$ 16,912$ Use of Money and Property 10,000 10,000 13,626 3,626 Total Revenues 849,400 849,400 869,938 20,538 EXPENDITURES Public Works 776,600 881,471 912,061 (30,590) Capital Outlay - 425,970 425,970 - Total Expenditures 776,600 1,307,441 1,338,031 (30,590) NET CHANGE IN FUND BALANCE 72,800 (458,041) (468,093) (10,052) Fund Balance - Beginning of Year 2,017,431 2,017,431 2,017,431 - FUND BALANCE - END OF YEAR 2,090,231$ 1,559,390$ 1,549,338$ (10,052)$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PUBLIC SAFETY GRANTS SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (93) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 150,000$ 150,000$ 156,727$ 6,727$ Use of Money and Property 7,700 7,700 1,058 (6,642) Total Revenues 157,700 157,700 157,785 85 OTHER FINANCING USES Transfers Out (130,000) (130,000) (130,000) - NET CHANGE IN FUND BALANCE 27,700 27,700 27,785 85 Fund Balance - Beginning of Year 76,420 76,420 76,420 - FUND BALANCE - END OF YEAR 104,120$ 104,120$ 104,205$ 85$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL MEASURE R SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (94) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 522,200$ 522,200$ 533,448$ 11,248$ Use of Money and Property 23,200 23,200 11,186 (12,014) Total Revenues 545,400 545,400 544,634 (766) EXPENDITURES Public Works 250,000 822,338 427,415 394,923 NET CHANGE IN FUND BALANCE 295,400 (276,938) 117,219 394,157 Fund Balance - Beginning of Year 1,264,041 1,264,041 1,264,041 - FUND BALANCE - END OF YEAR 1,559,441$ 987,103$ 1,381,260$ 394,157$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL MEASURE A SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (95) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 90,000$ 90,000$ -$ (90,000)$ Use of Money and Property 1,000 1,000 152 (848) Total Revenues 91,000 91,000 152 (90,848) OTHER FINANCING USES Transfers Out (100,000) (100,000) - 100,000 NET CHANGE IN FUND BALANCE (9,000) (9,000) 152 9,152 Fund Balance - Beginning of Year 61,284 61,284 61,284 - FUND BALANCE - END OF YEAR 52,284$ 52,284$ 61,436$ 9,152$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL MEASURE W SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (96) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 529,500$ 529,500$ 604,417$ 74,917$ Use of Money and Property 500 500 2,242 1,742 Total Revenues 530,000 530,000 606,659 76,659 EXPENDITURES Public Works 536,000 536,000 414,190 121,810 NET CHANGE IN FUND BALANCE (6,000) (6,000) 192,469 198,469 Fund Balance - Beginning of Year 99,009 99,009 99,009 - FUND BALANCE - END OF YEAR 93,009$ 93,009$ 291,478$ 198,469$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL MEASURE W SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (97) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies -$ 690,000$ 679,381$ (10,619)$ Use of Money and Property - - - - Total Revenues - 690,000 679,381 (10,619) EXPENDITURES Public Works - 213,537 187,954 25,583 NET CHANGE IN FUND BALANCE - 476,463 491,427 14,964 Fund Balance - Beginning of Year - - - - FUND BALANCE - END OF YEAR -$ 476,463$ 491,427$ 14,964$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL ABALONE COVE SEWER ASSESSMENT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (98) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes 50,000$ 50,000$ 51,980$ 1,980$ Use of Money and Property 2,000 2,000 2,045 45 Total Revenues 52,000 52,000 54,025 2,025 EXPENDITURES Public Works 146,000 151,715 94,903 56,812 NET CHANGE IN FUND BALANCE (94,000) (99,715) (40,878) 58,837 Fund Balance - Beginning of Year 258,999 258,999 258,999 - FUND BALANCE - END OF YEAR 164,999$ 159,284$ 218,121$ 58,837$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL DONOR-RESTRICTED CONTRIBUTIONS SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (99) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 25,000$ 25,000$ 6,495$ (18,505)$ Other Revenue - - 16,700 16,700 Total Revenues 25,000 25,000 23,195 (1,805) EXPENDITURES Public Works 25,000 25,422 15,778 9,644 Parks and Recreation - 13,000 10,830 2,170 Total Expenditures 25,000 38,422 26,608 11,814 NET CHANGE IN FUND BALANCE - (13,422) (3,413) 10,009 Fund Balance - Beginning of Year 781,954 781,954 781,954 - FUND BALANCE - END OF YEAR 781,954$ 768,532$ 778,541$ 10,009$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (100) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 2,600$ 2,600$ 425$ (2,175)$ EXPENDITURES Public Works 90,000 90,000 45,051 44,949 Excess (Deficiency) of Revenues Over (Under) Expenditures (87,400) (87,400) (44,626) 42,774 OTHER FINANCING SOURCES Transfers In 20,000 20,000 20,000 - NET CHANGE IN FUND BALANCE (67,400) (67,400) (24,626) 42,774 Fund Balance - Beginning of Year 84,068 84,068 84,068 - FUND BALANCE - END OF YEAR 16,668$ 16,668$ 59,442$ 42,774$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (101) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Revenue from Other Agencies 217,700$ 217,700$ 28,564$ (189,136)$ EXPENDITURES Public Works 150,600 169,834 29,906 139,928 NET CHANGE IN FUND BALANCE 67,100 47,866 (1,342) (49,208) Fund Balance - Beginning of Year 26,017 26,017 26,017 - FUND BALANCE - END OF YEAR 93,117$ 73,883$ 24,675$ (49,208)$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL QUIMBY SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021 (102) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 25,000$ 25,000$ 9,861$ (15,139)$ Other Revenues - - 23,652 23,652 Total Revenues 25,000 25,000 33,513 8,513 EXPENDITURES Public Works - 318,278 130,863 187,415 NET CHANGE IN FUND BALANCE 25,000 (293,278) (97,350) 195,928 Fund Balance - Beginning of Year 1,178,370 1,178,370 1,178,370 - FUND BALANCE - END OF YEAR 1,203,370$ 885,092$ 1,081,020$ 195,928$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL ENVIRONMENTAL EXCISE TAX SERVICE REVENUE FUND YEAR ENDED JUNE 30, 2021 (103) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 10,000$ 10,000$ 2,275$ (7,725)$ Other Revenues - - 3,902 3,902 Total Revenues 10,000 10,000 6,177 (3,823) EXPENDITURES Public Works 210,000 210,000 143,634 66,366 NET CHANGE IN FUND BALANCE (200,000) (200,000) (137,457) 62,543 Fund Balance - Beginning of Year 346,815 346,815 346,815 - FUND BALANCE - END OF YEAR 146,815$ 146,815$ 209,358$ 62,543$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LOW-MODERATE INCOME CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2021 (104) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes 43,200$ 43,200$ 59,765$ 16,565$ Use of Money and Property 3,000 3,000 1,845 (1,155) Total Revenues 46,200 46,200 61,610 15,410 NET CHANGE IN FUND BALANCE 46,200 46,200 61,610 15,410 Fund Balance - Beginning of Year 222,221 222,221 222,221 - FUND BALANCE - END OF YEAR 268,421$ 268,421$ 283,831$ 15,410$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AFFORDABLE HOUSING IN-LIEU CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2021 (105) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 15,000$ 15,000$ 7,142$ (7,858)$ Other Revenues - - 12,441 12,441 Total Revenues 15,000 15,000 19,583 4,583 NET CHANGE IN FUND BALANCE 15,000 15,000 19,583 4,583 Fund Balance - Beginning of Year 856,128 856,128 856,128 - FUND BALANCE - END OF YEAR 871,128$ 871,128$ 875,711$ 4,583$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HABITAT RESTORATION PERMANENT FUND YEAR ENDED JUNE 30, 2021 (106) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 12,400$ 12,400$ 6,092$ (6,308)$ Other Revenues - - - - Total Revenues 12,400 12,400 6,092 (6,308) EXPENDITURES Public Works 184,900 184,900 153,618 31,282 NET CHANGE IN FUND BALANCE (172,500) (172,500) (147,526) 24,974 Fund Balance - Beginning of Year 815,498 815,498 815,498 - FUND BALANCE - END OF YEAR 642,998$ 642,998$ 667,972$ 24,974$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL SUBREGION ONE PERMANENT FUND YEAR ENDED JUNE 30, 2021 (107) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 14,000$ 14,000$ 6,298$ (7,702)$ EXPENDITURES Public Works 41,600 41,600 42,115 (515) Excess (Deficiency) of Revenues Over (Under) Expenditures (27,600) (27,600) (35,817) (8,217) OTHER FINANCING SOURCES Transfers In 10,000 10,000 10,000 - NET CHANGE IN FUND BALANCE (17,600) (17,600) (25,817) (8,217) Fund Balance - Beginning of Year 771,232 771,232 771,232 - FUND BALANCE - END OF YEAR 753,632$ 753,632$ 745,415$ (8,217)$ CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL JOINT POWERS IMPROVEMENT AUTHORITY ABALONE COVE PERMANENT FUND YEAR ENDED JUNE 30, 2021 (108) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 2,600$ 2,600$ 6,309$ 3,709$ EXPENDITURES Public Works 56,000 56,000 28,694 27,306 NET CHANGE IN FUND BALANCE (53,400) (53,400) (22,385) 31,015 Fund Balance - Beginning of Year 1,128,362 1,128,362 1,128,362 - FUND BALANCE - END OF YEAR 1,074,962$ 1,074,962$ 1,105,977$ 31,015 CITY OF RANCHO PALOS VERDES, CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2021 (109) Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Use of Money and Property 460,000$ 460,000$ 214,382$ (245,618)$ Other Revenues - - 757 757 Total Revenues 460,000 460,000 215,139 (244,861) EXPENDITURES Capital Outlay: Infrastructure Administration - - - - Street Improvements 50,000 506,926 311,557 195,369 Parks/Trails/Open Space Improvements 300,000 466,946 357,036 109,910 Sewer Improvements - 356,652 102,076 254,576 Building Improvements 301,000 348,364 33,301 315,063 Storm Water Quality Improvements - 118,474 46,709 71,765 Landslide Improvements 1,200,000 1,328,582 39,037 1,289,545 Total Expenditures 1,851,000 3,125,944 889,716 2,236,228 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,391,000) (2,665,944) (674,577) 1,991,367 OTHER FINANCING SOURCES (USES) Transfers In 1,934,000 1,934,000 1,720,819 (213,181) NET CHANGE IN FUND BALANCE 543,000 (731,944) 1,046,242 1,778,186 Fund Balance - Beginning of Year 25,344,808 25,344,808 25,344,808 - FUND BALANCE - END OF YEAR 25,887,808$ 24,612,864$ 26,391,050$ 1,778,186$ STATISTICAL SECTION       CITY OF RANCHO PALOS VERDES, CALIFORNIA DESCRIPTION OF STATISTICAL SECTION CONTENTS JUNE 30, 2021 (110) This part of the City of Rancho Palos Verdes’ comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Contents Pages Financial Trends 111 These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity 121 These schedules contain information to help the reader assess the City’s most significant local revenue source, property tax. Debt Capacity 128 These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the city’s ability to issue additional debt in the future. The City does not have general bond indebtedness or debt issued with pledged revenue. Demographic and Economic Information 131 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information 136 These schedules contain services and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. CITY OF RANCHO PALOS VERDES, CALIFORNIA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (111) 2012 2013 2014 2015 2016 Governmental Activities: Net Investment In Capital Assets 114,488$ 113,284$ 114,427$ 119,450$ 118,399$ Restricted 1,750 1,835 11,792 11,647 21,120 Unrestricted 67,112 46,687 46,679 42,208 42,210 Total Governmental Activities Net Position 183,351$ 161,806$ 172,898$ 173,305$ 181,729$ Business-Type Activities: Net Investment In Capital Assets 13,356$ 18,319$ 29,557$ 31,168$ 31,663$ Restricted - - - - - Unrestricted 3,532 9,727 5,317 5,334 5,598 Total Business-Type Activities Net Position 16,888$ 28,046$ 34,874$ 36,502$ 37,261$ Primary Government: Net Investment In Capital Assets 127,845$ 131,603$ 143,984$ 150,618$ 150,062$ Restricted 1,750 1,835 11,792 11,647 21,120 Unrestricted 70,644 56,414 51,996 47,542 47,808 Total Primary Government Net Position 200,238$ 189,852$ 207,772$ 209,807$ 218,990$ CITY OF RANCHO PALOS VERDES, CALIFORNIA NET POSITION BY COMPONENT (CONTINUED) LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (112) Governmental Activities: Net Investment In Capital Assets Restricted Unrestricted Total Governmental Activities Net Position Business-Type Activities: Net Investment In Capital Assets Restricted Unrestricted Total Business-Type Activities Net Position Primary Government: Net Investment In Capital Assets Restricted Unrestricted Total Primary Government Net Position 2017 2018 2019 2020 2021 123,437$ 125,420$ 159,557$ 156,763$ 153,418$ 19,387 17,300 16,170 24,129 23,217 43,618 44,168 47,739 38,568 43,125 186,442$ 186,888$ 223,466$ 219,460$ 219,760$ 31,311$ 34,996$ -$ -$ -$ - - - - - 4,600 (128) - - - 35,911$ 34,868$ -$ -$ -$ 154,748$ 160,416$ 159,557$ 156,763$ 153,568$ 19,387 17,300 16,170 24,129 23,217 48,218 44,040 47,739 38,568 42,974 222,353$ 221,756$ 223,466$ 219,460$ 219,759$ CITY OF RANCHO PALOS VERDES, CALIFORNIA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (113) 2012 2013 2014 2015 2016 EXPENSES Governmental Activities: Administration 5,906$ 5,534$ 7,530$ 7,048$ 8,062$ Public Safety 4,178 4,348 4,429 4,670 5,215 Public Works 11,202 10,874 9,377 10,771 9,610 Community Development 2,432 2,526 1,927 2,072 1,971 Parks and Recreation 1,490 1,696 1,369 1,669 2,052 Non-Departmental - - 35 191 134 Interest on Long-Term Debt 109 - - - - Total Governmental Activities Expenses 25,318 24,978 24,667 26,421 27,044 Business-Type Activities: Water Quality Flood Protection 560 594 659 1,422 646 Total Primary Government Expenses 25,878$ 25,572$ 25,326$ 27,843$ 27,690$ PROGRAM REVENUES Governmental Activities: Charges for Services: Administration 747$ 779$ 120$ 108$ 318$ Public Safety 194 150 42 43 179 Public Works 684 543 169 432 159 Parks and Recreation 503 476 18 144 781 Community Development 1,644 1,854 1,772 2,058 958 Non-Departmental - - - 96 Operating Grants and Contributions 3,628 4,133 2,506 2,274 2,332 Capital Grants and Contributions 139 139 2,912 1,230 1,111 Total Governmental Activities Program Revenues 7,538 8,074 7,539 6,289 5,934 Business-Type Activities: Charges for Services: Water Quality Flood Protection 1,319 1,313 1,361 1,369 1,385 Operating Grants and Contributions - 2,137 - - - Capital Grants and Contributions - - 6,115 1,213 - Total Business-Type Activities Program Revenues 1,319 3,450 7,476 2,582 1,385 Total Primary Government Program Revenues 8,857$ 11,524$ 15,015$ 8,871$ 7,319$ Net (Expense) Revenue: Governmental Activities (17,780)$ (16,904)$ (17,128)$ (20,132)$ (21,110)$ Business-Type Activities 759 2,856 6,817 1,159 738 Total Primary Government Net Expense (17,022)$ (14,048)$ (10,311)$ (18,973)$ (20,372)$ GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities: Taxes: Property Taxes 11,480$ 11,284$ 11,991$ 12,452$ 13,764$ Transient Occupancy Tax 3,349 3,790 4,250 4,812 5,197 Franchise Taxes 1,881 1,907 1,998 2,045 2,045 Utility User Taxes 2,333 2,481 2,510 1,973 1,866 Other Taxes 674 778 1,589 1,564 1,179 Intergovernmental Revenue - Shared Sales Tax 1,449 1,588 1,642 1,758 2,104 Investment Income 604 184 94 122 214 Other 52 929 4,146 3,231 2,608 Transfers - (8,293) - (458) - Extraordinary Item 23,348 (19,289) - - Total Governmental Activities 45,170 (4,641) 28,220 27,499 28,977 Business-Type Activities: Investment Income 11 10 11 10 21 Other - - - - - Transfers - 8,293 - 458 - Total Business-Type Activities 11 8,303 11 468 21 Total Primary Government 45,181$ 3,662$ 28,231$ 27,967$ 28,998$ CHANGE IN NET POSITION Governmental Activities 27,390$ (21,545)$ 11,092$ 7,367$ 7,868$ Business-Type Activities 770 11,159 6,828 1,627 759 Total Primary Government Net Expense 28,159$ (10,386)$ 17,920$ 8,994$ 8,627$ CITY OF RANCHO PALOS VERDES, CALIFORNIA CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (114) EXPENSES Governmental Activities: Administration Public Safety Public Works Community Development Parks and Recreation Non-Departmental Interest on Long-Term Debt Total Governmental Activities Expenses Business-Type Activities: Water Quality Flood Protection Total Primary Government Expenses PROGRAM REVENUES Governmental Activities: Charges for Services: Administration Public Safety Public Works Parks and Recreation Community Development Non-Departmental Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Program Revenues Business-Type Activities: Charges for Services: Water Quality Flood Protection Operating Grants and Contributions Capital Grants and Contributions Total Business-Type Activities Program Revenues Total Primary Government Program Revenues Net (Expense) Revenue: Governmental Activities Business-Type Activities Total Primary Government Net Expense GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities: Taxes: Property Taxes Transient Occupancy Tax Franchise Taxes Utility User Taxes Other Taxes Intergovernmental Revenue - Shared Sales Tax Investment Income Other Transfers Extraordinary Item Total Governmental Activities Business-Type Activities: Investment Income Other Transfers Total Business-Type Activities Total Primary Government CHANGE IN NET POSITION Governmental Activities Business-Type Activities Total Primary Government Net Expense 2017 2018 2019 2020 2021 6,746$ 7,258$ 6,563$ 8,013$ 8,476$ 6,534 7,339 7,214 7,360 7,251 10,638 16,073 16,064 18,182 15,885 2,664 2,726 3,052 2,857 2,979 2,434 2,736 3,064 2,857 2,624 2,400 1,166 1,134 1,192 - - - - - - 31,416 37,298 37,091 40,461 37,215 1,400 1,071 811 - - 32,816$ 38,369$ 37,902$ 40,461$ 37,215$ 1,081$ 1,032$ 1,065$ 1,064$ 776$ 140 124 104 111 245 274 659 227 309 215 708 2,083 766 579 412 2,066 729 2,130 1,793 1,931 - - - - - 4,196 4,481 4,608 4,605 5,087 818 769 1,137 625 1,254 9,283 9,877 10,037 9,086 9,920 11 - - - - - - - - - - - - - - 11 - - - - 9,294$ 9,877$ 10,037$ 9,086$ 9,920$ (22,133)$ (27,421)$ (27,054)$ (31,375)$ (27,295)$ (1,389) (1,071) (811) - - (23,522)$ (28,492)$ (27,865)$ (31,375)$ (27,295)$ 13,302$ 13,762$ 14,350$ 14,994$ 15,966$ 5,601 5,615 5,645 3,910 3,116 1,985 1,838 2,150 2,146 2,203 1,775 403 1,917 1,912 2,246 365 2,520 429 395 633 2,463 2,129 2,661 2,163 1,919 434 838 1,313 1,225 676 920 763 909 626 835 - - 34,258 - - - - - - - 26,845 27,868 63,632 27,371 27,594 35 29 - - - - - 200 - - 3 - (34,258) - - 38 29 (34,058) - - 26,883$ 27,897$ 29,574$ 27,371$ 27,594$ 4,713$ 447$ 36,578$ (4,004)$ 299$ (1,351) (1,042) (34,869) - - 3,362$ (595)$ 1,709$ (4,004)$ 299$ (115) THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO PALOS VERDES, CALIFORNIA GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (116) Transient Utility Fiscal Property Occupancy Sales Franchise Users Other Year Tax Tax Tax Tax Tax Taxes Total 2012 11,480 3,349 1,452 1,881 2,333 1,372 21,867 2013 11,284 3,790 1,589 1,907 2,481 1,492 22,543 2014 11,991 4,250 1,642 1,998 2,510 1,590 23,981 2015 12,452 4,812 1,758 2,044 1,973 1,564 24,603 2016 13,764 5,197 2,104 2,045 1,866 1,179 26,155 2017 13,302 5,601 2,463 1,985 1,775 365 25,491 2018 13,028 5,615 2,520 2,129 1,838 1,290 26,420 2019 13,567 5,645 2,661 2,150 1,917 1,376 27,316 2020 14,184 3,910 2,163 2,146 1,912 1,291 25,606 2021 15,082 3,116 1,919 2,203 2,246 1,308 25,874 Source City General Ledger CITY OF RANCHO PALOS VERDES, CALIFORNIA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (117) 2012 2013 2014 2015 2016 GENERAL FUND Non-Spendable 7,493$ 138$ 144$ 598$ 564$ Restricted - - - - - Committed - - - - 802 Assigned - - - - - Unassigned 12,464 14,370 15,474 16,055 13,702 Total General Fund 19,957$ 14,508$ 15,618$ 16,653$ 15,068$ ALL OTHER GOVERNMENTAL FUNDS Non-Spendable: Special Revenue Funds 3,066$ -$ -$ -$ -$ Capital Projects Funds - - - - - Permanent Fund 1,750 1,835 1,845 1,855 1,866 Restricted: Special Revenue Funds 8,187 7,849 8,445 8,362 9,757 Capital Projects Funds - - - - 3,000 Permanent Fund 226 280 1,502 1,492 1,312 Committed: Special Revenue Funds - 36 58 55 353 Capital Projects Funds - - - - 3,467 Assigned: Special Revenue Funds - - 794 572 476 Capital Projects Funds 15,407 13,084 18,535 21,078 23,902 Unassigned: Special Revenue Funds (108) (198) (116) (59) - Total All Other Governmental Funds 28,528$ 22,885$ 31,063$ 33,355$ 44,133$ CITY OF RANCHO PALOS VERDES, CALIFORNIA FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED) LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (118) GENERAL FUND Non-Spendable Restricted Committed Assigned Unassigned Total General Fund ALL OTHER GOVERNMENTAL FUNDS Non-Spendable: Special Revenue Funds Capital Projects Funds Permanent Fund Restricted: Special Revenue Funds Capital Projects Funds Permanent Fund Committed: Special Revenue Funds Capital Projects Funds Assigned: Special Revenue Funds Capital Projects Funds Unassigned: Special Revenue Funds Total All Other Governmental Funds 2017 2018 2019 2020 2021 190$ 913$ 1,016$ 249$ 1,142$ - - - - - 964 715 341 167 2,785 - - - - - 15,671 16,450 19,431 21,333 21,872 16,825$ 18,078$ 20,788$ 21,749$ 25,799$ -$ -$ -$ -$ -$ - - - - 1,877 1,889 1,902 1,915 1,926 11,702 12,825 10,437 10,420 9,489 4,660 1,438 2,946 2,458 1,799 1,148 1,148 885 800 593 - - - - - - - - - - 479 - - - - 23,149 23,942 25,100 23,965 25,752 - - (564) (215) (219) 43,015$ 41,242$ 40,706$ 39,343$ 39,340$ CITY OF RANCHO PALOS VERDES, CALIFORNIA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (119) 2012 2013 2014 2015 2016 REVENUES Taxes 21,867$ 22,543$ 23,981$ 24,603$ 25,725$ Licenses and Permits 1,806 2,027 1,951 2,515 2,383 Revenues from Other Agencies 3,421 3,395 5,301 3,794 3,443 Charges for Services 149 141 323 427 558 Fines and Forfeitures 159 117 128 135 180 Use of Money and Property 1,350 1,383 846 653 750 Donation - 445 - - - Other Revenues 259 741 3,068 2,377 1,668 Total Revenues 29,011 30,791 35,598 34,504 34,707 EXPENDITURES Administration 5,726 5,401 5,792 5,135 6,183 Public Safety 4,178 4,348 4,492 4,761 5,215 Public Works 7,616 7,240 7,611 8,042 7,961 Parks and Recreation 1,479 1,557 1,573 1,819 2,042 Community Development 2,484 2,591 2,640 2,870 2,619 Non-Departmental - - 35 190 238 Capital Outlay 3,155 2,721 4,113 8,697 1,344 Debt Service: Principal 464 - - - - Interest 498 - - - - Total Expenditures 25,599 23,857 26,256 31,514 25,602 Excess of Revenues Over (Under) Expenditures 3,412 6,934 9,342 2,990 9,105 OTHER FINANCING SOURCES (USES) Transfers In 8,226 7,954 10,424 13,525 11,784 Transfers Out (7,856) (16,247) (10,479) (13,188) (11,784) Total Other Financing Sources (Uses) 371 (8,293) (55) 337 - EXTRAORDINARY GAIN (LOSS)18,240 (6,743) - - - NET CHANGE IN FUND BALANCES 22,023$ (8,102)$ 9,287$ 3,327$ 9,105$ Cost of Assets Capitalized 2,865 2,022 4,820 8,490 2,398 Debt Services as a percentage of Non-Capital Expenditures 4.2% 0.0% 0.0% 0.0% 0.0% CITY OF RANCHO PALOS VERDES, CALIFORNIA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED) LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (120) REVENUES Taxes Licenses and Permits Revenues from Other Agencies Charges for Services Fines and Forfeitures Use of Money and Property Donation Other Revenues Total Revenues EXPENDITURES Administration Public Safety Public Works Parks and Recreation Community Development Non-Departmental Capital Outlay Debt Service: Principal Interest Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) EXTRAORDINARY GAIN (LOSS) NET CHANGE IN FUND BALANCES Cost of Assets Capitalized Debt Services as a percentage of Non-Capital Expenditures 2017 2018 2019 2020 2021 25,491$ 26,266$ 28,098$ 26,416$ 26,758$ 3,044 3,095 2,205 1,917 2,007 5,117 5,345 5,158 5,442 5,883 1,072 1,113 215 203 193 153 144 331 365 675 415 714 1,656 1,446 828 - - - - - 732 1,038 1,026 1,009 615 36,024 37,715 38,689 36,798 36,959 5,445 5,867 5,581 6,319 5,456 6,534 7,399 7,214 7,360 7,251 9,084 11,068 13,546 12,260 9,681 2,175 2,493 2,769 2,548 2,662 2,664 2,736 3,052 2,857 2,624 2,400 1,167 1,134 1,204 1,814 7,106 7,504 3,291 4,653 3,424 - - - - - - - - - - 35,408 38,234 36,587 37,201 32,912 616 (519) 2,102 (403) 4,047 4,577 5,044 6,027 2,924 1,881 (4,577) (5,044) (5,954) (2,924) (1,881) - - 73 - - - - - - - 616$ (519)$ 2,175$ (403)$ 4,047$ 8,228 8,228 5,496 4,058 3,202 0.0% 0.0% 0.0% 0.0% 0.0% CITY OF RANCHO PALOS VERDES, CALIFORNIA ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (IN THOUSANDS OF DOLLARS) (121) Fiscal Year Residential Commercial Industrial Other Unsecured End Property Property Property Property Property 2012 8,596,777 390,497 3,358 564,763 70,284 2013 8,843,139 402,533 3,425 581,160 48,147 2014 9,190,789 475,510 3,493 660,569 46,962 2015 9,492,704 486,378 3,509 679,241 45,906 2016 10,094,704 501,636 3,580 695,738 44,300 2017 10,770,321 531,536 3,634 506,899 24,986 2018 11,302,341 541,829 3,707 521,883 26,829 2019 11,924,464 580,286 3,781 551,820 25,824 2020 12,466,277 597,016 3,857 556,186 26,416 2021 12,995,604 612,892 3,934 615,222 26,419 Source 2010-2013 & 2006-2007 County Assessor data, Avenu Insights & Analytics Unitary value of $980,000 is excluded. CITY OF RANCHO PALOS VERDES, CALIFORNIA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (IN THOUSANDS OF DOLLARS) (122) City Estimated Factor of Assessed Fiscal Less Taxable Direct Actual Taxable Value as a Year Tax-Exempt Assessed Tax Taxable Assessed Percentage of End Property Value Rate (1) Value (2) Value (3) Actual Value 2012 157,307 9,468,372 0.06373 10,683,820$ 1.12837 88.62% 2013 174,167 9,704,237 0.06373 11,390,239$ 1.17374 85.20% 2014 153,434 10,223,889 0.06373 13,967,877$ 1.36620 73.20% 2015 151,709 10,556,029 0.06373 13,571,675$ 1.28568 77.78% 2016 155,138 11,184,820 0.06373 15,366,477$ 1.37387 72.79% 2017 174,779 11,662,598 0.06373 17,011,415$ 1.45863 68.56% 2018 180,953 12,215,635 0.06373 15,669,728$ 1.28276 77.96% 2019 184,447 12,901,730 0.06373 17,984,167$ 1.39393 71.74% 2020 171,367 13,478,385 0.06373 17,927,678$ 1.33011 75.18% 2021 147,361 14,106,710 0.06373 18,817,832$ 1.33396 74.96% Source 2010-2013 & 2006-2007 County Assessor data, Avenu Insights & Analytics Unitary value of $980,000 is excluded. (1) City Direct Tax Rate is represented by TRA 001-224. (2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a factor was extrapolated and applied to current assessed values. Based on these calculations a factor was extrapolated and applied to current assessed values. CITY OF RANCHO PALOS VERDES, CALIFORNIA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS (123) 2011-12 2012-13 2013-14 2014-15 2015-16 City Direct Rate 0.06373 0.06373 0.06373 0.06373 0.06373 All Other Direct Rates: LA COUNTY GENERAL 0.44122 0.44122 0.44122 0.44122 0.44122 LA COUNTY ACCUM CAP OUTLAY 0.00011 0.00011 0.00011 0.00011 0.00011 CONSOL. FIRE PRO.DIST OF LA CO. 0.16972 0.16972 0.16972 0.16972 0.16972 LA CO. FIRE-FFW 0.00691 0.00691 0.00691 0.00691 0.00691 LA CO.FL.CON.DR.IMP.DIST.MAINT. 0.00260 0.00260 0.00260 0.00260 0.00260 LA CO FLOOD CONTROL MAINT 0.01470 0.01470 0.01470 0.01470 0.01470 PALOS VERDES LIBRARY DIST MAINT 0.04347 0.04347 0.04347 0.04347 0.04347 LA CO WEST VECTOR CONTROL DIST. 0.00032 0.00032 0.00032 0.00032 0.00032 CO SANITATION DIST NO 5 OPERAT 0.01750 0.01750 0.01750 0.01750 0.01750 WTR REPLENISHMENT DIST OF SO CAL 0.00018 0.00018 0.00018 0.00018 0.00018 ERAF 0.00000 0.00000 0.00000 0.00000 0.00000 EDUCATIONAL AUG FD IMPOUND 0.00000 0.00000 0.00000 0.00000 0.00000 COUNTY SCHOOL SERVICES 0.00137 0.00137 0.00137 0.00137 0.00137 CHILDREN'S INSTIL TUITION FUND 0.00272 0.00272 0.00272 0.00272 0.00272 LA CITY COMM COLLEGE DIST 0.02921 0.02921 0.02921 0.02921 0.02921 LA COMM COLL CHILDREN'S CTR FD 0.00030 0.00030 0.00030 0.00030 0.00030 PALOS VERDES PENINSULA USD 0.19699 0.19699 0.19699 0.19699 0.19699 CO.SCH.SERV.FD-LOS ANGELES 0.00808 0.00808 0.00808 0.00808 0.00808 DEV.CTR.HDCPD MINOR-LA UNIF. 0.00088 0.00088 0.00088 0.00088 0.00088 Total 1.00000 1.00000 1.00000 1.00000 1.00000 Debt Service Rates: COUNTY 0.00000 0.00000 0.00000 0.00000 0.00000 PALOS VERDES PEN USD 0.02251 0.02410 0.02311 0.02329 0.02343 COMMNTY COLLEGE 0.03530 0.04875 0.04454 0.04017 0.03576 PALOS VERDES LIB 0.00636 0.00644 0.00612 0.00585 0.00563 FLOOD CONTROL 0.00000 0.00000 0.00000 0.00000 0.00000 METRO WATER DIST 0.00370 0.00350 0.00350 0.00350 0.00350 Total 0.06787 0.08279 0.07727 0.07282 0.06832 Total Tax Rate 1.06787 1.08279 1.07727 1.07282 1.06832 Source 2010-2015 County Assessor data, Avenu Insights & Analytics City has no separate debt service rate, direct rate is 100% operating. TRA 149 is represented for this report. CITY OF RANCHO PALOS VERDES, CALIFORNIA PROPERTY TAX RATES (CONTINUED) DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS (124) City Direct Rate All Other Direct Rates: LA COUNTY GENERAL LA COUNTY ACCUM CAP OUTLAY CONSOL. FIRE PRO.DIST OF LA CO. LA CO. FIRE-FFW LA CO.FL.CON.DR.IMP.DIST.MAINT. LA CO FLOOD CONTROL MAINT PALOS VERDES LIBRARY DIST MAINT LA CO WEST VECTOR CONTROL DIST. CO SANITATION DIST NO 5 OPERAT WTR REPLENISHMENT DIST OF SO CAL ERAF EDUCATIONAL AUG FD IMPOUND COUNTY SCHOOL SERVICES CHILDREN'S INSTIL TUITION FUND LA CITY COMM COLLEGE DIST LA COMM COLL CHILDREN'S CTR FD PALOS VERDES PENINSULA USD CO.SCH.SERV.FD-LOS ANGELES DEV.CTR.HDCPD MINOR-LA UNIF. Total Debt Service Rates: COUNTY PALOS VERDES PEN USD COMMNTY COLLEGE PALOS VERDES LIB FLOOD CONTROL METRO WATER DIST Total Total Tax Rate Source 2010-2015 County Assessor data, Avenu Insights & Analytics City has no separate debt service rate, direct rate is 100% operating. TRA 149 is represented for this report. 2016-17 2017-18 2018-19 2019-20 2020-21 0.06373 0.06373 0.06373 0.06373 0.05680 0.44122 0.44122 0.44122 0.44122 0.25797 0.00011 0.00011 0.00011 0.00011 0.00011 0.16972 0.16972 0.16972 0.16972 0.16972 0.00691 0.00691 0.00691 0.00691 0.00691 0.00260 0.00260 0.00260 0.00260 0.00165 0.01470 0.01470 0.01470 0.01470 0.00933 0.04347 0.04347 0.04347 0.04347 0.03248 0.00032 0.00032 0.00032 0.00032 0.00019 0.01750 0.01750 0.01750 0.01750 0.01168 0.00018 0.00018 0.00018 0.00018 0.00018 0.00000 0.00000 0.00000 0.00000 0.07247 0.00000 0.00000 0.00000 0.00000 0.14097 0.00137 0.00137 0.00137 0.00137 0.00137 0.00272 0.00272 0.00272 0.00272 0.00272 0.02921 0.02921 0.02921 0.02921 0.02921 0.00030 0.00030 0.00030 0.00030 0.00030 0.19699 0.19699 0.19699 0.19699 0.19699 0.00809 0.00808 0.00808 0.00808 0.00808 0.00088 0.00088 0.00088 0.00088 0.00088 1.00000 1.00000 1.00000 1.00000 1.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.02320 0.02309 0.02371 0.02359 0.02378 0.03596 0.04599 0.04621 0.02718 0.04016 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00350 0.00350 0.00350 0.00350 0.00350 0.06265 0.07258 0.07342 0.05426 0.06744 1.06265 1.07258 1.07342 1.05426 1.06744 CITY OF RANCHO PALOS VERDES, CALIFORNIA PRINCIPAL PROPERTY TAX PAYERS LAST FISCAL YEAR AND NINE YEARS AGO (125) Percentage of Percentage of Taxable Total City Taxable Taxable Total City Taxable Taxpayer Value ($) Rank Value (%) Value ($) Rank Value (%) Long Point Development LLC 480,831,013 1 3.41% 331,377,907 1 3.50% GS Palos Verdes LLC 114,814,489 2 0.81% Roic California LLC 70,506,658 3 0.50% P V Victoria Apartments LLC 55,351,405 4 0.39% 47,055,126 4 0.50% California Water Service Co 44,327,492 5 0.31% 9,259,904 14 0.10% Vista Catalina Apts 43,452,773 6 0.31% Western Riviera Investors Et Al 34,176,694 7 0.24% 28,966,800 6 0.31% Golden Cove Center LLC 32,032,080 8 0.23% 26,607,901 7 0.28% Episcopal Communities And Services For S 31,074,786 9 0.22% Ocean View Drive Inc 28,628,010 10 0.20% VH Property Corp 28,081,760 11 0.20% 54,605,177 3 0.58% Belmont Village RPV LP 27,023,631 12 0.19% 22,399,961 11 0.24% Johnson Cory C Et Al Trs 18,990,737 13 0.13% WLP Westmont Plaza LLC 16,589,257 14 0.12% American Golf Inc 13,801,188 15 0.10% Water On Three Sides LP 12,512,919 16 0.09% Chang Jacqueline 9,997,245 17 0.07% Victoria Apartments 9,159,828 18 0.06% 7,821,788 16 0.08% Thornecrest LLC 9,148,621 19 0.06% Palos Verdes Terrace Ltd 8,974,647 20 0.06% 7,662,361 17 0.08% Wei Lai Development LLC 8,801,026 21 0.06% XCX Bear LLC 8,555,237 22 0.06% Bruning Fred W Co Tr 8,527,641 23 0.06% Maleenont Voravat 8,251,932 24 0.06% AA Homes LLC 8,228,808 25 0.06% PPC Villas RPV LLC 64,189,287 2 0.68% Terraces Rancho Palos Verdes L 35,413,270 5 0.37% Terranea Resort 24,459,679 8 0.26% BVF Li Madison LLC 23,069,957 9 0.24% Cox Com Inc. Orange 22,735,148 10 0.24% Johnson Eric C 15,951,715 12 0.17% Tridiamond LLC 13,411,749 13 0.14% Kariger Brian P 8,392,935 15 0.09% Saitta Christopher L 6,599,181 18 0.07% Amdan Investment LLC Lessee 6,550,000 19 0.07% Gerts Igor Anna 6,463,000 20 0.07% Labarba James G 6,133,098 21 0.06% Imbach Scott A Diane Y 6,022,988 22 0.06% Clow Leland E Ilene F 5,880,699 23 0.06% Hsu Tong H 5,866,730 24 0.06% Kip Holding Inc.5,602,022 25 0.06% Total Top 25 Taxpayers 1,131,839,877$ 8.02% 792,498,383$ 8.37% Total Taxable Value 14,106,710,194$ 100.00% 9,468,372,445$ 100.00% Source 2020-21 2011-12 CITY OF RANCHO PALOS VERDES, CALIFORNIA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (AMOUNTS EXPRESSED IN THOUSANDS) (126) Collected within the Fiscal Year of the Levy Total Collections to Date Total Tax Collections in Fiscal Levy for Percentage Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2012 5,777 5,656 97.91% 0 5,656 97.91% 2013 5,951 5,844 98.20% 0 5,844 98.20% 2014 6,287 6,193 98.50% 0 6,193 98.50% 2015 6,487 6,396 98.60% 0 6,396 98.60% 2016 6,813 6,716 98.58% 0 6,716 98.58% 2017 7,093 7,009 98.82% 0 7,009 98.82% 2018 7,481 7,389 98.77% 0 7,389 98.77% 2019 7,888 7,782 98.66% 0 7,782 98.66% 2020 8,290 8,017 96.71% 0 8,017 96.71% 2021 8,674 8,526 98.29% 0 8,526 98.29% Source County Assessor General Ledger, MuniServices, LLC / Avenu Insights & Analytics * Includes 1% secured apportionment only (127) THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO PALOS VERDES, CALIFORNIA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT CURRENT YEAR (128) 2020-21 Assessed Valuation: $14,174,092,132 Total Debt City’s Share of DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2021 % Applicable (1) Debt 6/30/21 Metropolitan Water District Los Angeles Community College District $26,830,000 0.434%116,442$ Los Angeles Unified School District 4,409,250,000 1.471%64,860,068 Palos Verdes Unified School District 10,864,555,000 0.174%18,904,326 City of Rancho Palos Verdes 50,379,648 47.043%23,700,098 - 100% - TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 107,580,933 Less: Los Angeles Unified School District General Obligation Bonds, Election of 2005, Series J (2010) Qualified School Construction Bonds: Amount accumulated in Interest and Sinking Fund and Set Asides for Repayment TOTAL NET OVERLAPPING TAN AND ASSESSMENT DEBT 153,571 107,427,362$ OVERLAPPING GENERAL FUND DEBT: Los Angeles County General Fund Obligations $2,618,507,256 0.829%21,707,425$ Los Angeles County Superintendent of Schools Certificates of Participation 4,565,373 0.829%37,847 Los Angeles County Sanitation District No. 5 Authority 4,100,179 9.962%408,460 Los Angeles County South Bay Cities Sanitation District Authority 698,865 4.066%28,416 Los Angeles Unified School District Certificates of Participation 130,970,000 0.174%227,888 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT 22,410,036 TOTAL DIRECT DEBT 0 TOTAL GROSS OVERLAPPING DEBT 129,990,970 TOTAL NET OVERLAPPING DEBT 129,837,399$ GROSS COMBINED TOTAL DEBT 129,990,970$ NET COMBINED TOTAL DEBT 129,837,399$ (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations. Ratios to 2020-21 Assessed Valuation: Direct Debt 0.00% Total Gross Direct and Overlapping Tax and Assessment Debt 0.76% Total Net Direct and Overlapping Tax and Assessment Debt 0.76% Gross Combined Total Debt 0.92% Net Combined Total Debt 0.92% Source 2020-21 Avenu Insights & Analytics CITY OF RANCHO PALOS VERDES, CALIFORNIA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (AMOUNTS EXPRESSED IN THOUSANDS) FISCAL YEAR (129) 2012 2013 2014 2015 2016 Debt Limit 1,420,256$ 1,382,850$ 1,533,583$ 1,583,404$ 1,677,723$ Total Net Debt Applicable to Limit - - - - - Legal Debt Margin 1,420,256$ 1,382,850$ 1,533,583$ 1,583,404$ 1,677,723$ Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 0% 0% 0% 0% 0% Cities have a maximum G.O. debt limit of 15% of the assessed valuation of all property within their boundaries. Cities have a maximum G.O. debt limit of 15% of the assessed valuation of all property within their boundaries. CITY OF RANCHO PALOS VERDES, CALIFORNIA LEGAL DEBT MARGIN INFORMATION (CONTINUED) LAST TEN FISCAL YEARS (AMOUNTS EXPRESSED IN THOUSANDS) FISCAL YEAR (130) Debt Limit Total Net Debt Applicable to Limit Legal Debt Margin Total Net Debt Applicable to the Limit as a Percentage of Debt Limit Cities have a maximum G.O. debt limit of 15% of 2017 2018 2019 2020 2021 1,749,390$ 1,832,345$ 1,935,260$ 2,021,758$ 2,116,007$ - - - - - 1,749,390$ 1,832,345$ 1,935,260$ 2,021,758$ 2,116,007$ 0% 0% 0% 0% 0% Total Taxable Value 14,106,710$ Debt Limit (15% of Total Taxable Value) 2,116,007 Debt Applicable to Limit - Legal Debt Margin 2,116,007$ Cities have a maximum G.O. debt limit of 15% of the assessed valuation of all property within their boundaries. CITY OF RANCHO PALOS VERDES, CALIFORNIA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS (131) Per Capita **Public Fiscal Personal Personal Median School Year Population (1) Income (2) Income (2) Age Enrollment 2011-12 41,897 2,561,016,971 61,127 47.6 11,840 2012-13 42,114 2,618,143,152 62,168 47.8 11,873 2013-14 42,358 2,564,205,491 60,537 47.6 11,700 2014-15 42,564 2,593,892,724 60,941 48.9 11,632 2015-16 43,041 2,461,988,241 57,201 49.6 11,499 2016-17 42,884 2,569,293,654 59,913 49.5 11,428 2017-18 42,723 2,722,513,349 63,725 49.3 11,346 2018-19 42,560 2,860,710,832 67,216 49.4 11,217 2019-20 41,731 2,917,361,629 69,909 49.7 11,009 2020-21 41,541 3,134,652,289 75,459 50.0 10,503 Source MuniServices, LLC / Avenu Insights & Analytics The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark. (1) Population Projections are provided by the California Department of Finance Projections. (2) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey. ** Student Enrollment reflects the total number of students enrolled in the Palos Verdes Unified School District. Other school districts within the City are not included. CITY OF RANCHO PALOS VERDES, CALIFORNIA DEMOGRAPHIC AND ECONOMIC STATISTICS (CONTINUED) LAST TEN CALENDAR YEARS (132) County City City Fiscal Unemployment Unemployment County Population Year Rate (%) (3) Rate (%) (3) Population (1) (% of County) 2011-12 11.1% 3.8% 9,884,632 0.42% 2012-13 11.0% 3.7% 9,958,091 0.42% 2013-14 7.6% 2.5% 10,041,797 0.42% 2014-15 7.1% 3.4% 10,136,559 0.42% 2015-16 6.7% 3.2% 10,241,335 0.42% 2016-17 5.2% 2.5% 10,241,278 0.42% 2017-18 4.1% 3.4% 10,283,729 0.42% 2018-19 3.9% 3.3% 10,253,716 0.42% 2019-20 20.6% 13.2% 10,172,951 0.41% 2020-21 12.8% 8.2% 10,044,458 0.41% Source Avenu Insights & Analytics The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark. (1) Population Projections are provided by the California Department of Finance Projections. (3) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department. CITY OF RANCHO PALOS VERDES, CALIFORNIA PRINCIPAL SALES TAX PRODUCERS LAST FISCAL YEAR AND NINE YEARS AGO (133) 2020-21 2011-12 Taxpayer Business Type Taxpayer Business Type 7-Eleven Food Stores Service Stations 7-Eleven Food Stores Service Stations Asaka Japanese Cuisine Restaurants American Golf Corporation Miscellaneous Retail Avenue Italy Restaurants America's Tire Auto Parts/Repair Blue Crab Steak & Seafood Restaurant Restaurants Asaka Japanese Cuisine Restaurants Carl's Jr. Restaurants Carl's Jr. Restaurants Restaurants Centinela Feed & Pet Supplies Florist/Nursery Centinela Feed & Pet Supplies Florist/Nursery Classic Tobacco Miscellaneous Retail Chevron Service Stations Service Stations Custom Container Storage & Rental Bldg.Matls-Whsle Coco's Bakery Restaurant Restaurants G & M Service Stations Service Stations CSK Auto Auto Parts/Repair Good Night Mattress & Bedroom Furniture/Appliance El Pollo Loco Restaurants Granvia Tomatillo Service Center Service Stations Good Night Mattress & Bedroom Furniture/Appliance Green Hills Memorial Park Miscellaneous Other Granvia Tomatillo Service Center Service Stations Highridge Car Wash Auto Parts/Repair Green Hills Memorial Park Miscellaneous Other Jack In The Box Restaurants Restaurants Highridge Car Wash Auto Parts/Repair Marshall's Stores Apparel Stores Marshall's Stores Apparel Stores O'Reilly Auto Parts Auto Parts/Repair Ralph's Grocery Company Food Markets Papa John's Pizza Restaurants Rolling Hills Plastics Light Industry Ralph's Grocery Company Food Markets Smart & Final Food Markets Smart & Final Food Markets Southern California Discount Tire Auto Parts/Repair Southern California Discount Tire Auto Parts/Repair Swank Audio Visuals Office Equipment Swan Thai RPV Restaurants Terranea Resort Restaurants Terranea Resort Restaurants The Admiral Risty Restaurants Trader Joe's Food Markets The Brixey Heavy Industry Trump National Golf Club Miscellaneous Retail Trader Joe's Food Markets Western Tobacco Miscellaneous Retail Trump National Golf Club Miscellaneous Retail Source MuniServices, LLC / Avenu Insights & Analytics CITY OF RANCHO PALOS VERDES, CALIFORNIA PRINCIPAL EMPLOYERS CURRENT YEAR AND THREE YEARS AGO (134) 2020-21 2017-18 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Palos Verdes Peninsula Unified School District 1,388 1 7.63% 1,430 1 7.15% Terranea Resort Hotel*608 2 3.34% 1,257 2 6.29% Canterbury 165 3 0.91% 150 6 0.75% Belmont Corp Ltd (Belmont Village of Rancho) 163 4 0.90% 180 3 0.90% Trump National Golf Club* 135 5 0.74% 168 4 0.84% Marymount College 118 6 0.65% 160 5 0.80% Ralphs Store #720 109 7 0.60% 105 8 0.53% City of Rancho Palos Verdes* 94 8 0.52% 137 7 0.69% Green Hills Memorial Park 83 9 0.46% 75 9 0.38% American Golf Corp (Los Verdes Golf Course) 64 10 0.35% 71 10 0.36% Subtotal of Principal Employers 2,927 16.08% 3,733 18.67% Total City Employment (1) 18,200 20,000 Source MuniServices, LLC / an Avenu Insights & Analytics Company Results based on direct correspondence with city’s local businesses. (1) Total City Labor Force is provided by EDD Labor Force Data * Count includes both full and part time employees (135) THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO PALOS VERDES, CALIFORNIA FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS (136) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Function General Government 52 53 54 60 62 62 64 60 61 62 Part-Time Staff (1) 17162225292930292627 Total 69697685919194898789 Source City Budget documents and Payroll records (1) Full-Time Equivalent CITY OF RANCHO PALOS VERDES, CALIFORNIA OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS (137) Function 2012 2013 2014 2015 2016 Administration: Employee Resignations 8 7 14 10 6 Workers Compensation Claims 3 3 1 3 2 Liability Claims 11 14 9 11 28 Budget Adjustments 11 24 15 15 18 Business Licenses Issued 1,294 1,868 1,997 2,134 2,012 Web Site Page Views (1) 3.0mil 3.1mil 3.3mil 426,772 * 403,704 Public Safety: Part I Crime Rates (per 10,000 population) 131 149 107 134 106 Public Works: Solid Waste Diversion Rates (2) 4.2lbs/person/day 2.87lbs/person/day 2.84lbs/person/day 3.15lbs/person/day 3.08lbs/person/day Pavement Rating 85 84 82 82 84 Parks and Recreation: Park Events 582 765 631 639 810 Class Meetings at Parks 1,587 1,202 1,233 1,400 1,025 Docent Led Nature Hikes 104 121 109 103 94 Community Development: Building Permits Processed 1,221 1,403 1,492 1,558 1,758 Plan Checks 161 268 264 255 289 Municipal Code Violations Closed 321 312 392 358 505 Source City Departments DNA: Data Not Available (1) The City launched a new website and with it, the methodology used to count total page views was modified. (2) A new system of measuring AB939 compliance was implemented in 2008 with the passage of SB1016. This changed the previous diversion calculation method to the new disposal-based indicator - the per capita disposal rate. The per capita disposal target is based on the average of 50% of generation in 2003 through 2006, expressed in terms of per capital disposal. CITY OF RANCHO PALOS VERDES, CALIFORNIA OPERATING INDICATORS BY FUNCTION (CONTINUED) LAST TEN FISCAL YEARS (138) Function 2017 2018 2019 2020 2021 Administration: Employee Resignations (5)627233034 Workers Compensation Claims 82111 Liability Claims (6)63 1 - Budget Adjustments 48 80 98 113 Business Licenses Issued 1,939 1,902 1,971 1,776 1,898 Web Site Page Views (1)536,568 445,633 450,206 657,040 808,722 Public Safety: Part I Crime Rates (per 10,000 population) Not available at 113 99 109 112 this time Public Works: Solid Waste Diversion Rates (2) (4) 2.46lbs/person/day 2.46lbs/person/day 5.6lbs/person/day 5.7lbs/person/day 5.7lbs/person/day Pavement Rating 84 84 89 89 89 Parks and Recreation: Park Events 829 1,281 1,122 807 243 Class Meetings at Parks 1,030 922 852 520 375 Docent Led Nature Hikes 108 113 104 37 0 Volunteer Events (3) 35 61 46 37 3 Volunteers (3) 764 1,806 1,095 974 100 Volunteer Hours (3) 2,486 5,919 3,569 2,724 252 Open Space Mgmt. Public Contacts (3) 23,101 33,306 29,973 29,786 38,476 Open Space Mgmt. Rules Enforced (3) 1,367 1,925 1,262 1,876 2,113 Open Space Mgmt. Maintenance / Projects (3)(4) 782 1,219 546 - - Community Development: Building Permits Processed 1,665 1,985 2,186 1,933 2,048 Plan Checks 289 292 288 256 268 Municipal Code Violations Closed 432 457 338 275 171 Source City Departments DNA: Data Not Available (1) The City launched a new website and with it, the methodology used to count total page views was modified. (2) A new system of measuring AB939 compliance was implemented in 2008 with the passage of SB1016. This changed the previous diversion calculation method to the new disposal-based indicator - the per capita disposal rate. The per capita disposal target is based on the average of 50% of generation in 2003 through 2006, expressed in terms of per capital disposal. (3) Began tracking this indicator in 2017. CITY OF RANCHO PALOS VERDES, CALIFORNIA CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS (139) Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Administration: Computer Workstations 88 93 98 114 138 140 144 144 155 155 Public Safety (1) Public Works: Street Miles 144 141 141 149 149 149 149 150 150 151 Traffic Signals 18151515151515151516 Parks and Recreation: Parks 15151616161617171717 Community Development: Vehicles Used for Inspections 5544422444 Source City Capital Asset Records Public safety services are contracted with other agencies. The City does not own any public safety capital assets.