CAFR FY 2019-20CITY OF RANCHO PALOS VERDES
ANNUAL FINANCIAL REPORT
F I S C A L Y E A R E N D E D
J U N E 3 0 T H , 2 0 2 0
C A L I F O R N I A
C O M P R E H E N S I V E
Photo and Design by
Karen Okstad
CITY OF RANCHO PALOS VERDES, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2020
Prepared by:
Finance Department
INTRODUCTORY SECTION
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2020
Table of Contents
i
PAGE
NUMBER
INTRODUCTORY SECTION
Table of Contents i
Letter of Transmittal v
Directory of Officials xiii
Organizational Chart xiv
GFOA Certificate of Achievement for Excellence in Financial Reporting xv
FINANCIAL SECTION
Independent Auditors’ Report 1
Management’s Discussion and Analysis 5
Government-Wide Financial Statements
Statement of Net Position 19
Statement of Activities 20
Fund Financial Statements
Government Funds
Balance Sheet 21
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 22
Statement of Revenues, Expenditures and Changes in Fund Balances 23
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 24
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual 25
Proprietary Fund s
Statement of Net Position 27
Statement of Revenues, Expenses and Changes in Net Position 28
Statement of Cash Flows 29
Fiduciary Funds
Statement of Fiduciary Net Position 30
Statement of Changes in Fiduciary Net Position 31
Notes to the Financial Statements 33
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability 65
Schedule of Pension Contributions 66
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2020
Table of Contents
ii
PAGE
NUMBER
FINANCIAL SECTION (CONTINUED)
Supplementary Information
Non-Major Governmental Funds
Description of Special Revenue Funds 67
Combining Balance Sheet 70
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 76
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual:
Special Revenue Funds
Gas Tax Fund 82
1972 Act Fund 83
El Prado Fund 84
1911 Act Fund 85
Waste Reduction Fund 86
Air Quality Management Fund 87
Proposition C Fund 88
Proposition A Fund 89
Public Safety Grants Fund 90
Measure R Fund 91
Measure A Fund 92
Measure M Fund 93
Abalone Cove Sewer Assessment Fund 94
Dr. Allen and Charlotte Ginsburg Cultural Arts Building Fund 95
Donor Restricted Contributions Fund 96
Joint Powers Improvement Authority - Portuguese Bend Fund 97
Community Development Block Grant Fund 98
Federal Grants 99
State Grants 100
Quimby Fund 101
Environmental Excise Tax Fund 102
Capital Projects Fund
Low-Moderate Income Capital Projects Fund 103
Affordable Housing In-Lieu Capital Projects Fund 104
Permanent Funds
Habitat Restoration Fund 105
Subregion One Permanent Fund 106
Joint Powers Improvement Authority - Abalone Cove Fund 107
Capital Improvement Major Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual 108
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2020
Table of Contents
iii
PAGE
NUMBER
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents 109
Financial Trends
Net Position by Component 110
Changes in Net Position 112
Governmental Activities Tax Revenue by Source 115
Fund Balances of Governmental Funds 116
Changes in Fund Balances of Governmental Funds 118
Revenue Capacity
Assessed Value of Taxable Property 120
Assessed Value and Estimated Actual Value of Taxable Property 121
Property Tax Rates - Direct and Overlapping Governments 122
Principal Property Tax Payers 124
Property Tax Levies and Collections 125
Debt Capacity
Direct and Overlapping Governmental Activities Debt 127
Legal Debt Margin Information 128
Demographic and Economic Information
Demographic and Economic Statistics 130
Principal Sales Tax Producers 132
Principal Employers 133
Operating Information
Full-time Equivalent City Government Employees by Function 135
Operating Indicators by Function 136
Capital Asset Statistics by Function 138
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January 15, 2021
Honorable Mayor and City Council
City of Rancho Palos Verdes
Rancho Palos Verdes, California
The Comprehensive Annual Financial Report (CAFR) of the City of Rancho Palos Verdes
for the fiscal year ended June 30, 2020, is hereby submitted as mandated by both local
ordinances and state statutes. These ordinances and statutes require that the City of
Rancho Palos Verdes issue annually a report on its financial position and activity, and that
an independent firm of certified public accountants audit this report. Responsibility for
both the accuracy of the data, and the completeness and fairness of the presentation,
including all disclosures, rests with the City. To the best of our knowledge and belief, the
enclosed data is accurate in all material respects and is reported in a manner that
presents fairly the financial position and results of operations of the various funds and
component unit of the City of Rancho Palos Verdes. In addition, to the best of our
knowledge, there are no untrue statements of material fact within the financial statements
or omissions of material fact to cause the financial statements to be misleading. All
disclosures necessary to enable the reader to gain an understanding of the City's financial
activities have been included.
White Nelson Diehl Evans, LLP, a firm of licensed certified public accountants, has
audited the City's financial statements. The goal of the independent audit was to provide
reasonable assurance the City's financial statements for the fiscal year ended June 30,
2020 are free of material misstatement. The independent auditor concluded it was
reasonable to render an unmodified opinion and that the City's financial statements for
the fiscal year ended June 30, 2020, are fairly presented in conformity with GAAP. Their
report is presented in the beginning of the financial section of this report.
Management's Discussion and Analysis (MD&A) immediately follows the independent
auditors' report and provides a narrative overview and analysis of the basic financial
statements. This letter of transmittal is designed to complement the MD&A and should be
read in conjunction with it.
City of Rancho Palos Verdes Profile
The City of Rancho Palos Verdes is located on a coastal peninsula overlooking the Pacific
Ocean in Los Angeles County, 20 miles south of the City of Los Angeles. The City was
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incorporated September 7, 1973, and currently has land area of 13.6 square miles and a
population of about 42,000. The City is primarily a "bedroom" community with relatively
little commercial activity.
The City has operated under the council-manager form of government since
incorporation. Policy-making and legislative authority are vested in the governing City
Council, which consists of five Council Members, including the Mayor and Mayor Pro-
Tem. The City Council is responsible, among other things, for passing ordinances,
adopting the budget, appointing committees and hiring the City Manager and the City
Attorney. The City Manager is responsible for carrying out the policies and ordinances of
the City Council, for overseeing the day-to-day operations of the City, and for appointing
the heads of the City’s departments. The City Council is elected on a non-partisan, at-
large basis. Council Members are elected to four-year staggered terms with two or three
Council Members elected every two years. The City Council designates the Mayor and
Mayor Pro-Tem for a one-year term.
The financial reporting entity (the government) includes all the funds of the primary
government (i.e., the City of Rancho Palos Verdes as legally defined), as well as its
component unit, the Rancho Palos Verdes Joint Powers Improvement Authority. A
component unit is a legally separate entity for which the primary government is financially
accountable. The City provides a broad range of services, including police protection,
solid waste collection, construction, and maintenance of streets and other infrastructure,
planning and zoning activities, recreational activities, cultural events, and general
administrative services. The City of Rancho Palos Verdes is a contract city, meaning that
some of these services are provided by contract with other agencies (both public and
private) and some services are delivered by the City's own employees.
Special districts of the County of Los Angeles provide library services, fire protection
services, and sewer services. The City has excluded the County of Los Angeles, as well
as the State of California and various school districts, from the financial reporting entity
because they do not meet the established criteria for inclusion.
FINANCIAL INFORMATION
Budgetary Controls
The City of Rancho Palos Verdes maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with legal provisions contained in the annual
appropriated budgets approved by the City Council and the Improvement Authority
Commission. Activities of the General fund, Special Revenue funds, Capital Projects funds
and Permanent funds are included in the annual appropriated budgets of the government
units. The level of budgetary control (that is, the level at which expenditures cannot legally
exceed the appropriated amount) is established at the department/function level within
each fund. Formal budgetary integration is employed as a management control device.
The City also maintains an encumbrance accounting system as one method of
maintaining budgetary control. These encumbrances lapse at year-end, and any
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unexpended balance is eligible to be carried over to the following year's budget
appropriations with City Council approval.
Adopted Budget to Actual Comparison
The City experienced an overall $2 million favorable budget variance in the General fund
for the fiscal year ended June 30, 2020. Due to the economic slowdown caused by the
COVID-19 pandemic, the City experienced an unfavorable revenue variance of $2.2 lower
than budgeted, mainly from the revenue loss of Transient Occupancy Taxes. However, in
response to the sudden loss of revenues and to mitigate the financial impact of the
pandemic, the City identified savings in various categories and ended the year $4.2
million in expenditures below budget. Much of the positive expenditure variances were
permanent savings resulting from conservative budget practices, savings from vacant
positions, and the continued careful management of resources.
Financial Policies
The City Council has established Reserve policies for the General Fund of 50 percent of
the annual operating expenditures in the General Fund. Reserve levels are reviewed
annually during the budget process. This reserve may be used at the discretion of the
City Council to provide for economic uncertainties, local disasters, contingencies for
unseen operating or capital needs, cash flow requirements and/or other financial
hardships or downturns in the local or national economy. At June 30, 2020, the reserve
balance is approximately $13 million or 50 percent of Fiscal Year 2019-2020 General
Fund operating budget.
The City also maintains a $3 million reserve in the Capital Improvement Projects (CIP)
fund as a reserve for major improvement projects related to roadways, storm drains,
parks, buildings, rights-of-way, and the sewer system.
Internal Control
The Finance Department of the City is responsible for establishing and maintaining an
appropriate internal control structure. The internal control system is designed to ensure
that the assets of the City are protected from loss, theft, or misuse and to ensure that
adequate accounting data is compiled to allow for the preparation of financial statements
in conformity with Generally Accepted Accounting Principles. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the cost
of a control should not exceed the benefits likely to be derived; and (2) the valuation of
costs and benefits requires estimates and judgements by management.
Significant Financial Events
The economic slowdown caused by the COVID-19 pandemic had a broad impact across
Los Angeles County and the State of California as a whole. On March 19, 2020 the
Governor Newsom, issued a stay at home order across the state. This marked the start
of measures that were put in place in an effort to mitigate the spread of the virus. On that
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same day, Terranea (the city’s largest source of TOT revenue) announced the temporary
closure of their resort and all amenities. Terranea would not resume operations until
June 12, 2020, although at reduced capacity. The Transient Occupancy Tax (TOT)
revenue generated by Terranea fell to just over $141,000 for March through
June compared to $1.7 million for the same period the prior fiscal year. Total TOT revenue
ended the year at $3.9 million, $1.6 million under the $5.5 million planned for at budget
adoption.
As the pandemic persisted through the end of the fiscal year and consumer demand
remained depressed, sales tax revenue also experienced a sizeable decline ending the
year at $2.16 million, $365,000 under the $2.53 million budgeted. As mentioned
previously, the COVID-19 health crisis caused the temporary closure of Terranea Resort,
along with a decrease in demand to retail and restaurants throughout the City. Terranea
and local restaurants comprised nearly half of all sales tax revenue prior to the start of
the pandemic and subsequently fell to just under 15%.
At the end of FY 2019-2020, the results validate the significant impact on the City’s
revenues due to the pandemic and the sudden economic downturn. In response to the
financial impacts since the pandemic, the City continued to be fiscally prudent, monitored
spending, and identified savings when possible. As a result, after applying the City’s
obligations and commitments, the City’s funds ended the year with a surplus. For instance
the City’s general operating account, the general fund, increased by $80,700, ending the
fiscal year with an unrestricted excess reserve of over $8 million.
Long-term Financial Planning
The City utilizes two long-term planning tools that serve as a guide to best allocate
resources to meet the City’s needs over time. The first of which is the Five-Year Capital
Improvement Program (CIP). The CIP provides efficient and effective delivery of
resources for improvement and maintaining public infrastructure and facilities. The Five-
Year Capital Improvement Plan is updated annually during the budget process.
The second long-term planning tool is the City’s Five-Year Financial Model (Model). The
Model establishes the foundation for guiding policy and making financial decisions, taking
into account any forecasted challenges and opportunities before they arise. This Model
allows for creation of baseline and alternative revenue and spending forecasts, including
historic and projected annual periods for the next five years. The Model also allows for
testing the impact of assumptions and proposed initiatives on projected budget gaps and
fund balances.
In response of the financial impacts of the pandemic, the City continues to closely monitor
the assumptions that were previously used in the long-term planning tools. In order to
have a more accurate forecast, the Finance Department will actively update the planning
tools with the most current information available. Accordingly, any substantial changes of
the assumptions will be presented to the City Council.
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MAJOR INITIATIVES
The City's staff, following specific directives of the City Council and the City Manager, has
been involved in a variety of projects throughout the year. Here are some projects to
highlight the City’s commitment to ensuring that its citizens are able to live and work in a
thriving environment.
Advocated for the League of California Cities and California Public Utilities
Commission to revise the Rule 20 program to make it possible for more
communities to put power lines underground for wildfire prevention.
Launched the Alert SouthBay emergency notification system with other South Bay
cities.
Implemented a COVID-19 public information campaign, including a daily
community newsletter, social media updates, and a comprehensive webpage.
Launched the Ready RPV wildfire preparedness social media challenge.
Implemented the Everbridge Emergency Notification System, Alert SouthBay.
Created a School Resource Officer program with the other three Peninsula cities
for PVPUSD.
Created a Seniors Resource Guide and other Community resources information
during COVID-19.
The City of Rancho Palos Verdes named the 7th Safest City in California by
California Safewise.
The City of Rancho Palos Verdes and City of Rolling Hills Estates joint Hazard
Mitigation Plan was submitted to the California Governor's Office of Emergency
Services (Cal OES) on June 18, 2020.
The Palos Verdes Peninsula cities and other community partners compiled a
Senior Resource Guide a list of local resources supporting seniors and individuals
with disabilities during the COVID-19 crisis.
The Emergency Preparedness Committee presented a Wildfire Mitigation
presentation to the City Council on May 5, 2020.
The Information Technology (IT) Department proactively planned and prepared the
City IT infrastructure for the increased remote access demand during the “Safer at
Home” shutdown, which allowed the City to continue its core business operations
uninterrupted.
Successfully implemented technical solutions enabling remote online meetings
(including City Council, Planning Commission, and various advisory board).
Provided training to staff and board members on how to run and participate in
online virtual meetings.
Completed the ADA Access Improvements in Area 9.
Completed Landslide GPS Survey.
Constructed the Residential Street Rehabilitation Program Area 3 and 4.
Completed the biennial update to the City’s Pavement Management Program.
Completed Phase 1 of the Traffic Sign Replacement program.
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Completed the certification of the Zone 2 Environmental Impact Report for the
development of 32 vacant lots in the City’s Landslide Moratorium Area.
Adopted the City’s Natural Communities Conservation Plan/ Habitat Conservation
Plan.
Adopted Code Amendments related to the City’s Accessory Dwelling Unit
Ordinance.
Awarded a $165,000 Senate Bill (SB) 2 for the development of a mixed-use overlay
zone along Western Avenue.
Adopted the City 2019 California Building Code.
Implemented the City’s Emissions Reduction Action Plan.
Completed the City Specific Vulnerability Assessment as part of the South Bay
Cities Climate Adaptation Plan.
Implemented Short-Term Rental platform, Host Compliance, for third party
monitoring service for non-complaint properties City wide.
Adopted the Natural Communities Conservation Plan/Habitat Conservation Plan
(NCCP/HCP).
Launched the City-operated Park Ranger Program.
Approved the Conceptual Master Plan for Ladera Linda.
OTHER INFORMATION
Independent Audit
The City requires an annual audit by independent certified public accountants. The
accounting firm of White Nelson Diehl Evans LLP conducted this year's audit. The
auditors' report on the government-wide financial statements and combining and
individual fund statements and schedules is included in the financial section of this report.
Single Audit
As a recipient of federal, state, and county financial assistance, the City is responsible for
ensuring that an adequate internal control structure is in place to ensure compliance with
applicable laws and regulations related to those programs. This internal control structure
is subject to periodic evaluation by management. In years when over $750,000 is
expended on Federal financial assistance programs, the City is required to undergo an
annual single audit in conformity with the provisions of the Single Audit Act of 1984 and
U.S. Office of Management and the Uniform Guidance. For the year ended June 30, 2019,
the City did not expend over $750,000 on Federal financial assistance programs; and
therefore a Single Audit is not required.
GFOA Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Finance Reporting to the City of
Rancho Palos Verdes for its CAFR for the fiscal year ended June 30, 2019. This was the
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26th consecutive year that the City has achieved this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized CAFR. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current CAFR continues to meet the Certificate of Achievement Program's requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments
The preparation of this report would have not been possible without the dedication of the
entire staff of the Finance Department. I would also like to acknowledge the assistance
of the City's auditors, CliftonlarsonAllen LLP, and the contributions of all the departments
by providing data necessary to prepare the City's FY 2019-2020 CAFR.
In closing, I want to thank the City Council for their continued leadership directing the City
to achieve a sound fiscal position over the last several years. We look forward to
maintaining this success in the future under the leadership of the City Council.
Respectfully submitted,
�Wj� Trang Nguyen
Director of Finance
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xii
Comprehensive Annual Financial Report
FY 2019-2020
FY 2019-2020 CITY OFFICIALS
CITY STAFF
City Manager
Ara Mihranian, AICP
Deputy City Manager………………………………….…………..…….Karina Banales
Director of Finance…………………………….………………...............Trang Nguyen
Director of Recreation and Parks…...............................................Cory Linder
Director of Community Development……………………....…….Ken Rukavina
Director of Public Works…………………………………………..……Vacant
xiii
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
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rancho Palos Verdes
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2019
Executive Director/CEO
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xvi
FINANCIAL SECTION
CliftonLarsonAllen LLP
CLAconnect.com
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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, 2020, 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.
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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, 2020, and the respective changes in financial position and,
where applicable, cash flows thereof and the respective budgetary comparison for the general 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 (RSI) in the accompanying table of contents, 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 RSI 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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 15, 2021, 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
January 15, 2021
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MANAGEMENT’S DISCUSSION & ANALYSIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
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, 2020. 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 v-xi 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, 2020, by $219.5 million (Net Position). Of this amount,
$38.6million (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 decreased by $4.0 million from the prior year from the
Governmental activities primarily due to the increase of capital assets being
depreciated and the decrease of the unrestricted fund balance from completed
projects.
As of June 30, 2020, the City’s Governmental Funds reported combined ending
Fund Balances of $61.1 million, a decrease of $0.4 million in comparison with the
prior year due to lower amount of prepaid items.
At the end of the current fiscal year, the General Fund reported an increase in fund
balance in the amount of $1 million. The increase is due primarily to higher inflow
of revenues over expenditures.
As of June 30, 2020, unassigned fund balance for the General Fund was
$21.3 million or 82% of the General Fund expenditures. Of this amount, $20.8
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 $28.5 million.
General Fund unassigned fund balance represents 75% of this amount.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
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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, 2020
7
The Government-Wide Financial Statements can be found on pages 19-20 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 21-24.
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 28 individual Governmental Funds during
the Fiscal Year ended June 30, 2020. 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 and the
Capital Improvements Fund are considered to be major funds. Data from the other 26
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, 2020
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 Fund to demonstrate compliance with this budget.
Proprietary Funds
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 27-29 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 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 30-31 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 33-64 of this report.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
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 70-108 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 $219.5
million at June 30, 2020. By far, the largest portion of the City’s Net Position of $156.8
million or 71% reflects its net investment in Capital Assets (e.g. Land, Infrastructure,
Buildings, and Equipment). The City uses these Capital Assets to provide services to its
citizens; consequently, these assets are not available for future spending.
Summary of Net Position
2020 2019
Current and other assets 77,628,528$ 77,547,330$
Capital assets 157,569,827 159,556,834
Total assets 235,198,355 237,104,164
Deferred outflows of resources 2,661,430 2,871,414
Long-term liabilities outstanding 12,008,364 10,995,129
Other liabilities 5,714,365 4,780,662
Total liabilities 17,722,729 15,775,791
Deferred inflows of resources 676,537 734,107
Net Investment in capital assets 156,763,391 159,556,834
Restricted 24,115,702 16,170,342
Unrestricted 38,581,426 47,738,504
Total net position 219,460,519$ 223,465,680$
Governmental
Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
10
A portion of the City’s Net Position of $24.1 million or 11%, represents resources subject
to external restrictions. The remaining balance of Unrestricted Net Position of
$38.6 million or 18 % 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 $0.08 million
mainly due to the lower amount paid in prepaid items. Moreover, the total capital assets
decreased by $2.5 million over the prior year.
As a result of the net pension liability increase, the long-term liabilities outstanding
increased by $1 million over the prior year. Additionally, other liabilities increased by
$0.9 million over prior year.
Statement of Activities
2020 2019
Program revenues:
Charges for services 3,855,702$ 4,292,011$
Operating contributions and grants 4,604,829 4,608,132
Capital contributions and grants 625,618 1,136,762
General revenues:
Property taxes 14,993,467 14,349,681
Other taxes 10,526,313 12,802,577
Other 1,850,900 2,222,040
Total revenues 36,456,829 39,411,203
Administration 8,013,351 6,562,703
Public safety 7,360,045 7,214,441
Public works 18,182,315 16,064,163
Parks and recreation 2,857,317 3,064,444
Community development 2,857,235 3,051,881
Non-departmental 1,191,727 1,133,906
Total expenses 40,461,990 37,091,538
Transfers - 34,257,672
(Decrease) / Increase in net position (4,005,161) 36,577,337
Net position - beginning of fiscal year 223,465,680 186,888,343
Net position - end of fiscal year 219,460,519$ 223,465,680$
Governmental
Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
11
Governmental Activities
As illustrated in the chart above, the City’s Net Position in Governmental Activities
decreased by $4 million when compared to the prior year mainly due to the economic
impact of the COVID-19 pandemic.
Overall, government-wide revenues for the fiscal year ended June 30, 2020, decreased
by $3 million. Of the decreased amount, $1 million was from the program revenues and
$2 million was from general revenues. The decrease in revenues was due to the economic
impact of the COVID-19 pandemic; mainly impacting the City’s transient occupancy tax
and sales tax.
The percentages of each category for the sources of revenues are illustrated in the
following chart.
Sources of Revenue - Governmental Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
12
The government-wide expenses for the fiscal year ended June 30, 2020 increased by
$3.4 million from the prior year. The majority of the increased amount was from the
completion of the ongoing capital and maintenance projects, and unforeseen emergency
operations center expenses. The percentages of each function for the expenses are
illustrated in the following chart.
Expenses by Function – Governmental Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
13
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 $61.1 million, a decrease of $0.4 million in comparison to the
prior year. Approximately $58.9 million or 96% 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 49-51 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 $21.3
million, while total Fund Balance reached to $21.7 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 75% of total General Fund uses, while total Fund Balance represents
76% of the same amount.
The fund balance of the City’s General Fund increased by $1 million from the prior year.
The increase is due to the higher inflow of revenues and the department wide personnel
and non-personnel savings. Additional details on General Fund are provided in the
General Fund Highlights.
The Capital Improvements Fund Balance ended the year with a decrease of $1.7 million
from the prior year. The majority of the decrease is largely from the budgeted capital
outlay projects that were completed by year-end. These projects are primarily from the
residential street rehabilitation program and the City’s Portuguese Bend Landslide
project.
Financial Analysis of Proprietary Funds
The City’s Proprietary Funds provide the same type of information found in the
Government-Wide Financial Statements, but in more detail.
The Net Position of the Internal Service Funds at the end of the fiscal year amounted to
$2.8 million, a decrease to the Net Position by $0.2 million. The decreased amount is due
the replacement of computers and hardware, and the purchase of a vehicle for the new
park ranger program.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
14
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 $29.2 million and $26 million of expenditures. When
including net transfers of $2.3 million, there is a positive variance of just over $1 million
(revenues to expenditures).
The decrease in revenues during FY 2019-2020 was due to the economic slowdown
caused by the COVID-19 pandemic. Revenue from transient occupancy tax and sales tax
experienced the largest impact. To mitigate the revenue loss, staff across all departments
worked together to identify savings and reduce costs. As a result, the General Fund ended
the year with a positive variance.
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 $25.6
million, $1.7 million, or 6% under final budget of $27.3 million. This
underperformance of revenue was due primarily to the impact the COVID-19
pandemic had on travel, leisure activities, and dining which lead to drops in TOT
and sales tax revenue.
Use of Money and Property
Consists of interest earnings and rental & lease revenue, these revenue sources
ended the year at $706,236, which is $132,264 or 16% under than the final budget
of $838,500. The majority of this decrease of $112,000, is the result of lost rental
& lease revenue as facilities were closed due to the pandemic.
Licenses and Permits
This category ended the year lower than estimated by $250,977 or 12% due to the
expected decrease in demand from the stay home orders.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
15
Expenditure Highlights
Salaries & Benefits
This category ended the year just over $1 million or 9.6% under the final budget
of $10.6 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 $955,000 or 24.6% under the final budget
of $3.9 million. This underrun is due to delayed services and planned services
that were not utilized during the fiscal year and reduced activities in the fourth
quarter from augmenting services.
CAPITAL ASSET AND DEBT ADMINISTRATION
The City’s investment in Capital Assets for its Governmental activities as of June 30,
2020, amounts to $156.8 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 $6.6 million was recorded for the City’s Capital Assets.
A total of $4.7 million of construction in progress was added primarily from the
residential and street improvements and beautification projects.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
16
City of Rancho Palos Verdes Capital Assets (Net of Depreciation)
2020 2019
Capital assets not being depreciated
Land 43,528,625$ 42,087,575$
Construction in progress 4,635,208 3,130,630
Total capital assets not being depreciated 48,163,833 45,218,205
Capital assets being depreciated, net
Buildings 6,927,004 7,193,177
Vehicles 103,678 104,423
Computer equipment 24,580 91,141
Equipment - water quality - -
Furniture, fixtures and equipment 151,276 188,377
Infrastructure
Roadway system 52,132,630 56,131,059
Sewer system 4,484,110 4,937,865
Storm drain system 8,425,905 8,671,515
Storm drain system - water quality 31,953,125 30,422,761
Park system 5,203,686 5,170,068
Total capital assets being depreciated, net 109,405,994 112,910,386
Capital Assets, net 157,569,827$ 158,128,591$
Governmental
Activities
Additional information on the City’s Capital Assets can be found in Note #4 on pages 47-
48 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 $403,201 for Employee Compensated Absences.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
17
City of Rancho Palos Verdes Outstanding Debt
At the fiscal year ended June 30, 2020, the City’s total debt decreased by $0.003 million
or 1%.
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 $2,021,758,000.
ECONOMIC FACTORS AND NEXT YEAR BUDGETS AND RATES
The City historically follows a very fiscally conservative budgeting and forecasting model
and the impacts of this practice were seen this fiscal year as the pandemic caused and
economic slowdown that touched nearly all areas of the economy across the country.
Despite decreases to revenue from transient occupancy tax and sales tax, the City
maintains a healthy financial outlook and supports the General Fund operations with only
recurring tax revenue. Roughly 41% of the City’s revenue came from property tax during
FY 2019-2020. Property tax is expected to make up 46% of general fund revenue during
FY 2020-2021. This stable revenue base provides the City with a steady and predictable
revenue inflow year over year.
During 2019, total property values within the city grew by 4.4%, or $596 million, bringing
the total net taxable property value for the City to $14.14 billion. This increase is slightly
less than the 6.1% increase seen across Los Angeles County as a whole. Of the
$596 million increase, $566 million was from growth in residential properties which makes
up 92% of the total property value, followed by an $18 million increase in commercial
property (5.5% of total property value). Despite the lasting impacts the pandemic has had
on the economy, the demand for real estate has remain high.
2020 2019
Employee compensated absences 403,201 400,505
Total 403,201$ 400,505$
Governmental
Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2020
18
The median sale price of a detached single family residential home in Rancho Palos
Verdes from January through August 2020 was $1,350,000. This represents a $25,000
(1.9%) increase in median sale price from 2019.
The economic slowdown and stay at home orders across the state had the largest impact
to Transient Occupancy Tax (TOT). The City’s prudent practice of limiting the majority of
TOT revenue to supporting the City’s capital program and not operating expenses greatly
reduced the impact of the lost revenue to the City’s operations. Despite the impact to
revenue, the City-wide annual budget continues to showcase the City’s commitment to
fiscal prudence, predicated on maintaining a structurally sound operating budget, lean
staffing, healthy cash reserves and absence of debt.
REQUESTS FOR INFORMATION
This Financial Report is designed to provide a general overview of the financial position
of the City of Rancho Palos Verdes for all those with an interest in the government’s
finances. Questions concerning any of the information provided in this report, or requests
for additional financial information, should be addressed to the Finance Department at
30940 Hawthorne Boulevard, Rancho Palos Verdes, CA 90275 or finance@rpvca.gov.
BASIC FINANCIAL STATEMENTS
Governmental
Activities
ASSETS
CURRENT ASSETS:
Cash and investments 66,869,944$
Receivables:
Taxes 1,328,201
Interest 123,328
Other 588,153
Inventory 36,113
Prepaid costs 212,648
TOTAL CURRENT ASSETS 69,158,387
NONCURRENT ASSETS:
Notes receivable 8,470,141
Receivable from Successor Agency 10,656,709
Allowance for Successor Agency receivable (10,656,709)
Capital assets:
Non-depreciable 48,163,833
Depreciable, net 109,405,994
TOTAL NONCURRENT ASSETS 166,039,968
TOTAL ASSETS 235,198,355
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 2,661,430
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued liabilities 4,082,525
Retentions payable 240,511
Unearned revenue 208,667
Deposits payable 869,752
Current portion of noncurrent liabilities 312,910
TOTAL CURRENT LIABILITIES 5,714,365
NONCURRENT LIABILITIES:
Due beyond one year 90,291
Net pension liability 11,918,073
TOTAL NONCURRENT LIABILITIES 12,008,364
TOTAL LIABILITIES 17,722,729
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 676,537
NET POSITION
Net invested in capital assets 156,763,391
Restricted for:
Housing and community development 9,574,507
Transportation 5,486,428
Public works 5,001,927
Parks and recreation 2,074,240
Public safety 76,420
Nonexpendable endowment principal 1,915,317
Unrestricted 38,568,289
TOTAL NET POSITION 219,460,519$
STATEMENT OF NET POSITION
June 30, 2020
CITY OF RANCHO PALOS VERDES
See accompanying notes to financial statements.
19
Net Revenue
(Expense) and
Changes in
Operating Capital Net Position
Charges for Grants and Grants and Governmental
Functions/programs Expenses Services Contributions Contributions Activities
Governmental Activities:
Administration 8,013,351$ 1,063,790$ -$ -$ (6,949,561)$
Public safety 7,360,045 110,639 158,079 - (7,091,327)
Public works 18,182,315 309,326 4,446,750 625,618 (12,800,621)
Parks and recreation 2,857,317 579,382 - - (2,277,935)
Community development 2,857,235 1,792,565 - - (1,064,670)
Non-departmental 1,191,727 - - - (1,191,727)
Total primary government 40,461,990$ 3,855,702$ 4,604,829$ 625,618$ (31,375,841)
General revenues:
Taxes:
Property taxes 14,993,467
Transient occupancy tax 3,909,799
Franchise tax 2,146,037
Utility user tax 1,912,370
Other taxes 394,765
Unrestricted intergovernmental revenue - shared sales tax 2,163,342
Investment income 1,225,042
Unrestricted grants, contributions and other revenues 625,858
Total general revenues 27,370,680
Change in net position (4,005,161)
Net position - beginning of year 223,465,680
Net position - end of year 219,460,519$
Program Revenues
CITY OF RANCHO PALOS VERDES
STATEMENT OF ACTIVITIES
For the year ended June 30, 2020
See accompanying notes to financial statements.
20
Capital
Projects Other Total
Capital Governmental Governmental
General Improvements Funds Funds
Cash and investments 23,734,081$ 25,758,040$ 14,759,140$ 64,251,261$
Receivables:
Taxes 1,005,521 - 322,680 1,328,201
Interest 42,387 46,425 29,806 118,618
Other 120,774 4,426 462,953 588,153
Due from other funds 451,708 - - 451,708
Inventory 36,113 - - 36,113
Prepaid items 212,648 - - 212,648
Receivable from Successor Agency 10,656,709 - - 10,656,709
Allowance for Successor Agency Receivable (10,656,709) - - (10,656,709)
TOTAL ASSETS 25,603,232$ 25,808,891$ 15,574,579$ 66,986,702$
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable and accrued liabilities 2,766,942$ 285,102$ 1,019,577$ 4,071,621$
Due to other funds - - 451,708 451,708
Retentions payable 9,162 178,981 52,368 240,511
Unearned revenue 208,667 - - 208,667
Deposits payable 869,752 - - 869,752
TOTAL LIABILITIES 3,854,523 464,083 1,523,653 5,842,259
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 52,632 52,632
FUND BALANCES (DEFICITS):
Non-Spendable
Endowment principal - - 1,915,317 1,915,317
Prepaid items 212,648 - - 212,648
Inventory 36,113 - - 36,113
Restricted - 1,379,700 12,297,912 13,677,612
Committed 167,174 - - 167,174
Assigned - 23,965,108 - 23,965,108
Unassigned 21,332,774 - (214,935) 21,117,839
TOTAL FUND BALANCES (DEFICITS) 21,748,709 25,344,808 13,998,294 61,091,811
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 25,603,232$ 25,808,891$ 15,574,579$ 66,986,702$
ASSETS
CITY OF RANCHO PALOS VERDES
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2020
See accompanying notes to financial statements.
21
Fund balances - total governmental funds 61,091,811$
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. 157,339,564
Receivables not available to pay for current period expenditures are reported as unavailable 52,632
revenue in the financial statements.
Long-term notes receivable are not current available resources and, therefore, do not affect the
governmental fund balance.8,470,141
Long-term liabilities are not due and payable in the current period and, therefore, are not reported
in the governmental funds.(403,201)
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 (11,918,073)
Deferred outflows of resources related to pensions 2,661,430
Deferred inflows of resources related to pensions (676,537)
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. 2,842,752
Net position of governmental activities 219,460,519$
BALANCE SHEET TO THE STATEMENT OF NET POSITION
June 30, 2020
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE GOVERNMENTAL FUNDS
See accompanying notes to financial statements.
22
Capital
Projects Other Total
Capital Governmental Governmental
General Improvements Funds Funds
REVENUES:
Taxes 25,606,371$ -$ 809,575$ 26,415,946$
Licenses and permits 1,916,823 - - 1,916,823
Revenue from other agencies - - 5,441,869 5,441,869
Charges for services 8,407 - 194,632 203,039
Fines and forfeitures 365,074 - - 365,074
Use of money and property 706,236 471,473 268,769 1,446,478
Other revenues 621,094 - 387,920 1,009,014
TOTAL REVENUES 29,224,005 471,473 7,102,765 36,798,243
EXPENDITURES:
Current:
Administration 6,319,098 - - 6,319,098
Public safety 7,360,045 - - 7,360,045
Public works 5,714,008 - 6,546,264 12,260,272
Parks and recreation 2,533,171 - 14,408 2,547,579
Community development 2,857,235 - - 2,857,235
Non-departmental 1,204,534 - - 1,204,534
Capital outlay - 4,652,908 - 4,652,908
TOTAL EXPENDITURES 25,988,091 4,652,908 6,560,672 37,201,671
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,235,914 (4,181,435) 542,093 (403,428)
OTHER FINANCING SOURCES (USES):
Transfers in 275,000 2,509,052 140,000 2,924,052
Transfers out (2,550,752) - (373,300) (2,924,052)
TOTAL OTHER FINANCING SOURCES
(USES) (2,275,752) 2,509,052 (233,300) -
NET CHANGE IN FUND BALANCES 960,162 (1,672,383) 308,793 (403,428)
FUND BALANCES - BEGINNING OF YEAR 20,788,547 27,017,191 13,689,501 61,495,239
FUND BALANCES - END OF YEAR 21,748,709$ 25,344,808$ 13,998,294$ 61,091,811$
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2020
See accompanying notes to financial statements.
23
Net change in fund balances - total governmental funds (403,428)$
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 4,528,913
Depreciation expense (6,362,242)
Revenues in the Statement of Activities that do not provide current financial resources are not reported
as revenues in the funds.(544,737)
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.156,187
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. (2,697)
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. (1,148,647)
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. (228,510)
Change in net position of governmental activities (4,005,161)$
CITY OF RANCHO PALOS VERDES
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
For the year ended June 30, 2020
See accompanying notes to financial statements.
24
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 27,331,900$ 27,331,900$ 25,606,371$ (1,725,529)$
Licenses and permits 2,167,800 2,167,800 1,916,823 (250,977)
Charges for services 15,100 15,100 8,407 (6,693)
Fines and forfeitures 327,000 327,000 365,074 38,074
Use of money and property 838,500 838,500 706,236 (132,264)
Other revenues 743,100 743,100 621,094 (122,006)
TOTAL REVENUES 31,423,400 31,423,400 29,224,005 (2,199,395)
EXPENDITURES:
Administration
City council 123,200 123,200 89,739 33,461
City manager 778,000 639,800 645,233 (5,433)
Legal services 925,000 925,000 1,133,168 (208,168)
Community outreach 75,100 75,100 63,415 11,685
City clerk 711,100 656,900 722,449 (65,549)
RPV TV 252,500 252,500 182,625 69,875
Personnel 391,900 429,926 364,038 65,888
Finance 1,641,300 1,661,551 1,634,788 26,763
Information technology - Data 1,003,900 1,062,979 975,570 87,409
Information technology - Voice 115,000 109,000 103,792 5,208
Emergency operations - - 404,281 (404,281)
Total Administration 6,017,000 5,935,956 6,319,098 (383,142)
Public safety
Sheriff 6,540,000 6,690,000 6,683,678 6,322
Special programs 760,200 714,700 651,804 62,896
Emergency preparedness 165,700 165,700 24,563 141,137
Total Public Safety 7,465,900 7,570,400 7,360,045 210,355
Public Works
Public works administration 2,090,400 2,063,224 2,092,585 (29,361)
Traffic management 403,500 1,606,488 1,355,298 251,190
Storm water quality 489,000 522,369 479,833 42,536
Building maintenance 643,400 466,900 448,644 18,256
Park/Trail/Open Space maintenance 1,403,800 1,192,607 1,147,988 44,619
Street landscape Maintenance 181,000 181,000 147,382 33,618
Sewer maintenance 46,000 36,000 42,278 (6,278)
Total Public Works 5,257,100 6,068,588 5,714,008 354,580
(Continued)
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the year ended June 30, 2020
See accompanying notes to financial statements.
25
Variance with
Final Budget
Positive
Original Final Actual (Negative)
EXPENDITURES (CONTINUED):
Parks and Recreation
Recreation administration 1,042,600$ 935,642$ 964,028$ (28,386)$
Recreation facilities 914,200 937,882 900,585 37,297
Special events 262,100 172,383 169,037 3,346
PVIC 540,900 452,626 457,537 (4,911)
REACH 78,000 24,000 20,789 3,211
Support services 24,400 24,400 21,195 3,205
Total Parks and Recreation 2,862,200 2,546,933 2,533,171 13,762
Community Development
Planning services 1,622,200 1,431,254 1,358,503 72,751
Building & safety 1,074,300 658,800 678,640 (19,840)
Code enforcement 267,200 227,000 222,319 4,681
View restoration/preservation 389,200 387,000 384,590 2,410
NCCP 50,000 15,000 - 15,000
Geology 150,000 118,000 111,100 6,900
Animal Control 140,000 120,000 102,083 17,917
Total Community Development 3,692,900 2,957,054 2,857,235 99,819
Non-departmental 1,297,800 1,387,410 1,204,534 182,876
TOTAL EXPENDITURES 26,592,900 26,466,341 25,988,091 478,250
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,830,500 4,957,059 3,235,914 (1,721,145)
OTHER FINANCING SOURCES (USES):
Transfers in 275,000 275,000 275,000 -
Transfers out (4,116,900) (2,757,300) (2,550,752) 206,548
TOTAL OTHER FINANCING
SOURCES (USES) (3,841,900) (2,482,300) (2,275,752) 206,548
NET CHANGE IN FUND BALANCE 988,600 2,474,759 960,162 (1,514,597)
FUND BALANCE - BEGINNING OF YEAR 20,788,547 20,788,547 20,788,547 -
FUND BALANCE - END OF YEAR 21,777,147$ 23,263,306$ 21,748,709$ (1,514,597)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED)
GENERAL FUND
For the year ended June 30, 2020
See accompanying notes to financial statements.
26
Equipment
Replacement
Internal
Service
Fund
CURRENT ASSETS:
Cash and investments 2,618,683$
Receivables:
Interest 4,710
TOTAL CURRENT ASSETS 2,623,393
NONCURRENT ASSETS:
Capital assets, being depreciated:
Property and equipment 2,466,342
Accumulated depreciation (2,236,079)
TOTAL NONCURRENT ASSETS 230,263
TOTAL ASSETS 2,853,656
LIABILITIES:
Accounts payable and accrued liabilities 10,904
Invested in capital assets 230,263
Unrestricted 2,612,489
TOTAL NET POSITION 2,842,752$
ASSETS
LIABILITIES
NET POSITION
CITY OF RANCHO PALOS VERDES
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2020
See accompanying notes to financial statements.
27
Equipment
Replacement
Internal
Service
Fund
OPERATING REVENUES:
Charges for services 84,600$
Miscellaneous 450
TOTAL OPERATING REVENUES 85,050
OPERATING EXPENSES:
Materials and supplies 154,572
Depreciation 205,674
TOTAL OPERATING EXPENSES 360,246
OPERATING LOSS (275,196)
NONOPERATING REVENUES:
Investment income 46,686
CHANGE IN NET POSITION (228,510)
TOTAL NET POSITION - BEGINNING OF YEAR 3,071,262
TOTAL NET POSITION - END OF YEAR 2,842,752$
CITY OF RANCHO PALOS VERDES
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION - PROPRIETARY FUNDS
For the year ended June 30, 2020
See accompanying notes to financial statements.
28
Equipment
Replacement
Internal
Service
Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services provided 85,050$
Payments to suppliers (155,686)
NET CASH USED BY
OPERATING ACTIVITIES (70,636)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (51,996)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments 49,901
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (72,731)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2,691,414
CASH AND CASH EQUIVALENTS - END OF YEAR 2,618,683$
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss (275,196)$
Adjustments to reconcile operating loss to net cash
used by operating activities:
Depreciation 205,674
Changes in operating assets and liabilities:
Decrease in accounts payable and accrued liabilities (1,114)
NET CASH USED BY OPERATING
ACTIVITIES (70,636)$
CITY OF RANCHO PALOS VERDES
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2020
See accompanying notes to financial statements.
29
Successor Agency
Private-Purpose
Trust Fund
Cash and investments 309,666$
Interest receivable 353
Prepaid costs 356,125
TOTAL ASSETS 666,144
LIABILITIES
CURRENT LIABILITIES:
Current portion of noncurrent liabilities 489,551
TOTAL CURRENT LIABILITIES 489,551
NONCURRENT LIABILITIES:
Due beyond one year 13,677,158
TOTAL NONCURRENT LIABILITIES 13,677,158
TOTAL LIABILITIES 14,166,709
NET POSITION (DEFICIT) HELD IN TRUST (13,500,565)$
ASSETS
STATEMENT OF FIDUCIARY NET POSITION
CITY OF RANCHO PALOS VERDES
FIDUCIARY FUND
June 30, 2020
See accompanying notes to financial statements.
30
Successor Agency
Private-Purpose
Trust Fund
ADDITIONS:
Taxes 769,327$
Use of money and property 3,408
Miscellaneous 1,548
TOTAL ADDITIONS 774,283
DEDUCTIONS:
Administration 51,727
Debt interest and fiscal charges 362,050
TOTAL DEDUCTIONS 413,777
CHANGE IN NET POSITION 360,506
NET POSITION (DEFICIT) - BEGINNING OF YEAR (13,861,071)
NET POSITION (DEFICIT) - END OF YEAR (13,500,565)$
CITY OF RANCHO PALOS VERDES
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the year ended June 30, 2020
See accompanying notes to financial statements.
31
32
(THIS PAGE INTENTIONALLY LEFT BLANK)
NOTES TO FINANCIAL STATEMENTS
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
33
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.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
34
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. Reporting Entity (Continued)
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.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
35
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Description of Funds (Continued)
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.
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 Capital Improvement Capital Projects Fund is used to account for funds used for the City’s capital
improvement projects.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
36
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting/Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
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 non-operating 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 non-operating revenues and
expenses.
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.).
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
37
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting/Measurement Focus (Continued)
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. 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, 2020, based on calculations by
City Management, the proceeds of taxes in the amount of $25.5 million did not exceed appropriation limit
of $31.3 million.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
38
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Capital Assets (Continued)
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 Network 10 to 100 years
Sewer Network 25 to 50 years
Storm Drain Network 30 to 100 years
Parks and Recreation Network 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.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
39
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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
non-spendable. The City had a total of $212,648 of prepaid items as of June 30, 2020.
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.
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, and
for changes of assumptions. 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, 2020
40
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. Deferred Inflows and Outflows (Continued)
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 differences between expected and actual experience, 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.
Deferred inflows related to pensions for the net differences between projected and actual earnings on
plan investments. These amounts are amortized over five years.
N. New Accounting Pronouncements
Current Year Standards
In May 2020, GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authority
Guidance, which was effective immediately. This Statement provided temporary relief to governments
and other stakeholders in light of the COVID-19 pandemic and postponed the effective dates of certain
provisions in Statements and Implementation Guides that first became effective or are scheduled to
become effective for periods beginning after June 15, 2018, and later.
In June 2020, GASB issued Statement No. 97 – Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an
amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32.
Paragraph 4 of this Statement requires that for purposes of determining whether a primary government is
financially accountable for a potential component unit, except for a potential component unit that is a
defined contribution pension plan, a defined contribution OPEB plan, or an other employee benefit plan
(for example, certain Section 457 plans), the absence of a governing board should be treated the same as
the appointment of a voting majority of a governing board if the primary government performs the duties
that a governing board typically would perform. Paragraph 5 of this Statement also requires that the
financial burden criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only
defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that
meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph
3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans,
respectively.
The requirements of these statements did not impact the City.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
41
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. New Accounting Pronouncements (Continued)
Pending Accounting Standards
GASB has issued the following statements, which may impact the City’s financial reporting requirements
in the future:
In January 2017, GASB issued Statement No. 84 – Fiduciary Activities. This Statement establishes
criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria
generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the
beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary
component units and postemployment benefit arrangements that are fiduciary activities. An activity
meeting the criteria should be reported in a fiduciary fund in the financial statements. This Statement also
provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred
that compels the government to disburse fiduciary resources. Events that compel a government to disburse
fiduciary resources occur when a demand for the resources has been made or when no further action,
approval, or condition is required to be taken or met by the beneficiary to release the assets. The
requirements of this Statement are effective for reporting periods beginning after December 15, 2019.
In June 2017, GASB issued Statement No. 87 – Leases. This statement requires recognition of certain
lease assets and liabilities for leases that previously were classified as operating leases and recognized as
inflows of resources or outflows of resources based on the payment provisions of the contract. It
establishes a single model for lease accounting based on the foundational principle that leases are
financings of the right to use an underlying asset for leases with a term of more than 12 months. Under
this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset,
and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby
enhancing the relevance and consistency of information about governments’ leasing activities. For leases
with a term of 12 months or less, lessees and lessors should recognize short-term lease payments as
outflows of resources or inflows of resources, respectively, based on the payment provisions of the lease
contract. The requirements of this Statement are effective for reporting periods beginning after June 15,
2021, early application is encouraged.
In January 2020, GASB issued Statement No. 92 – Omnibus 2020. This Statement addresses practice
issues that have been identified during implementation and application of certain GASB Statements. This
Statement addresses a variety of topics including issues related to leases, fiduciary activities,
measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a
government acquisition, reporting by public entity risk pools for amounts that are recoverable from
reinsurers or excess insurers, reference to nonrecurring fair value measurements of assets or liabilities in
authoritative literature and terminology used to refer to derivative instruments.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
42
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. New Accounting Pronouncements (Continued)
Pending Accounting Standards (Continued)
The requirements of Statement No. 92 are effective as follows:
The requirements related to the effective date of Statement 87 and Implementation Guide 2019-3,
reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon
issuance.
The requirements related to intra-entity transfers of assets and those related to the applicability of
Statements 73 and 74 are effective for fiscal years beginning after June 15, 2021.
The requirements related to application of Statement 84 to postemployment benefit arrangements and
those related to nonrecurring fair value measurements of assets or liabilities are effective for reporting
periods beginning after June 15, 2021.
The requirements related to the measurement of liabilities (and assets, if any) associated with AROs
in a government acquisition are effective for government acquisitions occurring in reporting periods
beginning after June 15, 2021.
In June 2020, GASB issued Statement No. 97 – Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an
amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. This
Statement requires that a Section 457 plan be classified as either a pension plan or an other employee
benefit plan depending on whether the plan meets the definition of a pension plan and clarifies that
Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to
determine whether those arrangements should be reported as fiduciary activities. This Statement
supersedes the remaining provisions of Statement No. 32, Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans, as amended, regarding investment
valuation requirements for Section 457 plans. As a result, investments of all Section 457 plans should be
measured as of the end of the plan’s reporting period in all circumstances. The requirements of this
Statement are effective for fiscal years beginning after June 15, 2021. Earlier application of those
requirements is encouraged and permitted.
O. 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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
43
2. CASH AND INVESTMENTS
Cash and investments as of June 30, 2020, are classified in the accompanying financial statements as follows:
Government-Wide Fiduciary Fund
Statement of Statement of Fiduciary
Net Position Net Position Total
Total cash and investments 66,869,944$ 309,666$ 67,179,610$
Cash and investments as of June 30, 2020 consist of the following:
Petty Cash 5,000$
Deposits with Financial Institutions 3,076,975
Certificates of Deposit 21,724,963
Money Market Mutual Funds 1,038,546
U.S. Treasury Obligations 4,000,000
Local Agency Investment Fund (LAIF) 37,334,126
67,179,610$
Investments Authorized by the California Government Code and the City of Rancho Palos Verdes’ Investment
Policy.
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% $5 million
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
44
2. CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect fair value of an
investment. Generally, the longer the maturity of an investment, there is a greater sensitivity of its fair value
to changes in market interest rates. The City manages its exposure to interest rate risk by investing with the
Local Agency Investment Fund (LAIF) such that the portfolio provides cash flows and liquidity need for
operations. The City’s investment is represented by shares in the pool, which can be withdrawn in one business
day. The average maturity of the pool is less than one year.
Remaining
Maturity
Investment Type 0-6 months 6-12 months 12-36 months 36-60 months Total
Certificates of Deposit 1,750,000$ 1,750,000$ 14,974,963$ 3,250,000$ 21,724,963$
Money Market Mutual Funds 1,038,546 - - - 1,038,546
U.S. Treasury Obligations 2,000,000 - 2,000,000 - 4,000,000
Local Agency Investment Fund (LAIF) 37,334,126 - - - 37,334,126
Total 42,122,672$ 1,750,000$ 16,974,963$ 3,250,000$ 64,097,635$
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, negotiable certificates of deposit, and LAIF are not rated. The money
market funds are rated AAA.
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 percent 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 percent of the secured public deposits.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
45
2. CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk (Continued)
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.
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.
3. INTERFUND TRANSACTIONS
Interfund Receivable/Payable
The $451,708 due to the General Fund from Other Governmental Funds ($32,679 from the Measure A Fund
and $419,029 from the State Grants Fund) is the result of loans to cover temporary deficit cash balances.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
46
3. INTERFUND TRANSACTIONS (CONTINUED)
Interfund Transfers
Interfund transfers for the year ended June 30, 2020, consisted of the following:
Other
General Governmental
Fund Funds Totals
General Fund -$ 275,000$ 275,000$
Capital Improvement Projects 2,410,752 98,300 2,509,052
Other Governmental Funds 140,000 - 140,000
Total 2,550,752$ 373,300$ 2,924,052$
Transfer From
Transfer To
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.
The General Fund transferred a total of $2,550,752 to other funds. Of this amount, $2,410,752 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 $140,000 was transferred to the following Other
Governmental Funds: $50,000 to the Improvement Authority Abalone Cove to subsidize annual maintenance
of landslide mitigation facilities; $55,000 to the Improvement Authority Portuguese Bend to subsidize annual
maintenance of landslide mitigation facilities; and, $35,000 to the Subregion 1 Fund to subsidize landscape
maintenance. The General Fund received $275,000 from the following Other Governmental Funds: $175,000
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; and, $100,000 from the
Measure A Maintenance Fund to fund parks, trails, and open space maintenance within the General Fund for
fuel modification in the open space areas. The Capital Improvement Projects (CIP) Fund received $98,300
during the year from Other Governmental Funds (Federal Grants Fund) to reimburse for project costs.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
47
4. CAPITAL ASSETS AND DEPRECIATION
The City has reported all capital assets including infrastructure in the Government-Wide Statement of Net
Position. The City elected to use the basic reporting approach as defined by GASB Statement No. 34 for all
infrastructures, whereby depreciation expense and accumulated depreciation has been recorded. The
following tables present the capital assets activity for the year ended June 30, 2020.
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital assets not being depreciated:
Land 43,515,818$ 12,807$ -$ 43,528,625$
Construction in progress 3,130,630 4,656,077 (3,151,499) 4,635,208
Total capital assets not
being depreciated 46,646,448 4,668,884 (3,151,499) 48,163,833
Capital assets being depreciated:
Building and improvements 14,281,198 - - 14,281,198
Vehicles 511,560 39,768 - 551,328
Computer equipment 989,151 - - 989,151
Equipment - water quality 11,813 - - 11,813
Furniture, fixtures and equipment 913,635 62,589 - 976,224
Infrastructure
Roadway system 121,642,288 256,027 - 121,898,315
Sewer system 25,965,995 - - 25,965,995
Storm drain system 13,660,322 22,500 - 13,682,822
Storm drain system - water quality 34,512,356 2,339,284 - 36,851,640
Parks system 7,609,857 343,356 - 7,953,213
Total capital assets
being depreciated 220,098,175 3,063,524 - 223,161,699
Less accumulated depreciation for:
Buildings and improvements (7,088,021) (266,173) - (7,354,194)
Vehicles (407,137) (40,513) - (447,650)
Computer equipment (898,010) (66,561) - (964,571)
Equipment - water quality (11,813) - - (11,813)
Furniture, fixtures and equipment (725,258) (99,690) - (824,948)
Infrastructure
Roadway system (65,511,229) (4,254,456) - (69,765,685)
Sewer system (21,028,130) (453,755) - (21,481,885)
Storm drain system (4,988,807) (268,110) - (5,256,917)
Storm drain system - water quality (4,089,595) (808,920) - (4,898,515)
Parks system (2,439,789) (309,738) - (2,749,527)
Total accumulated depreciation (107,187,789) (6,567,916) - (113,755,705)
Total capital assets
being depreciated, net 112,910,386 (3,504,392) - 109,405,994
Governmental activities
capital assets, net 159,556,834$ 1,164,492$ (3,151,499)$ 157,569,827$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
48
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) 267,263$
Public Works (depreciation of roadways, sewers, and storm drains) 5,785,241
Parks and recreation (depreciation of parks system) 309,738
Capital assets held by the City's internal service funds are charged
to various functions based on their usage of the assets 205,674
Total Depreciation Expense - Governmental Activities 6,567,916$
5. NOTES RECEIVABLE
Notes
Receivable
Affordable Housing 8,153,675$
Community Development Block Grant 316,466
Subtotal 8,470,141
Receivable from Successor Agency 10,656,709
Allowance from Successor Agency receivable (10,656,709)
Total Notes Receivable 8,470,141$
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
$1,883,131 at June 30, 2020 was $8,153,675.
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.
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
49
5. NOTES RECEIVABLE (CONTINUED)
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, 2020 is $316,466.
6. LONG-TERM LIABILITIES
Balance Balance Amount Due
July 1, 2019 Additions Deletions June 30, 2020 in One Year
Employee Compensated Absences 400,504$ 313,514$ (310,817)$ 403,201$ 312,910$
Employee Compensated Absences
There is no fixed payment schedule for employee compensated absences. Based on historical trends, $312,910
is estimated to be the amount that will be used and/or paid out during the fiscal year ended June 30, 2021.
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, 2020
50
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:
Non-spendable - 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.
The City’s governmental fund balances were classified as follows at June 30, 2020:
Capital Other
General Improvement Governmental
Fund Fund Funds
Nonspendable:
In Form (inventory and prepaid) 248,761$ -$ -$
Legally (endowment principal) - - 1,915,317
Restricted:
Public Works - 1,379,700 3,609,090
Housing and Community Development - - 1,104,366
Transportation - - 5,486,428
Parks and Recreation - - 2,021,608
Public Safety - - 76,420
Committed:
Public Works 75,561 -
City Administration 34,828 - -
Recreation and Parks 56,785 - -
Assigned:
Public Works - 23,965,108 -
Unassigned:
Unrestricted Fund Balance 20,763,374 - (214,935)
Continued Appropriations 569,400 - -
Governmental Fund Balance Totals 21,748,709$ 25,344,808$ 13,998,294$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
51
7. CLASSIFICATIONS OF NET POSITION AND FUND BALANCE (CONTINUED)
Non-Spendable Fund Balance
General Fund assets include $36,113 of inventory held for resale at the Point Vicente Interpretive Center gift
shop, and $212,648 of prepayments for expenditures related to the fiscal year ended June 30, 2021.
The fund balance of the Improvement Authority’s Abalone Cove Fund includes a $1,000,000 non-spendable
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 Fund includes a $750,000 non-spendable 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 non-spendable endowment in 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. The balance of
$165,317 represents 15 years of annual $10,000 contributions plus interest earnings.
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 $1,379,700 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 $167,174 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 $23,965,108 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 $20,763,374 at June 30, 2020.
City Council approved to carry forward $569,400 of FY 2019-20 General Fund appropriations to FY 2020-21.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
52
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.
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 at the June 30, 2019 measurement date, are summarized in the
following table.
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% 6.25%
Required employer contributions rates:
Normal cost rate 10.609% 7.634% 6.842%
Payment of unfunded liability 613,118$ 1,413$ 1,011$
Miscellaneous
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
53
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
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.
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, 2020, in the amount of $11,918,073.
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, 2019, 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, 2018, rolled forward to June 30, 2019, 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, 2018
and 2019 measurement dates was as follows:
Proportion - June 30, 2018 0.11334%
Proportion - June 30, 2019 0.11631%
Change - Increase (Decrease) 0.00297%
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
54
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, 2020, the City recognized pension expense of $2,414,005. At June 30, 2020, the
City reported deferred outflows of resources and deferred inflows of resources related to pension from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date 1,265,361$ -$
Differences between expected and actual experience 827,760 (64,135)
Change of assumptions 568,309 (201,461)
Change in employer's proportion and differences between
the employer's contributions and the employer's
proportionate share of contributions - (202,576)
Net differences between projected and actual earnings on
plan investments - (208,365)
Total 2,661,430$ (676,537)$
The amount of $1,265,361 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows or resources
related to pensions will be recognized as pension expense as follows:
Year Ended June 30,
2021 768,469$
2022 (183,211)
2023 92,169
2024 42,105
2025 -
Thereafter -
719,532$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
55
8. PENSION AND RETIREMENT HEALTH SAVINGS PLANS (CONTINUED)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
Actuarial Assumptions
The total pension liability for the June 30, 2019 measurement period was determined by an actuarial valuation
as of June 30, 2018, with update procedures used to roll forward the total pension liability to June 30, 2019.
The total pension liability was based on the following assumptions:
Valuation Date June 30, 2018
Measurement Date June 30, 2019
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)
(3)
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 re port from December 2017 that can be found on the CalPERS website.
The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on
purchasing power a pplies, 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, 2020
56
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
Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a)
(b) An expected inflation of 2.0% used for this period
(c) An expected inflation of 2.92% used for this period
Asset Class (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.
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 Rate -1% Current Discount Rate Discount Rate +1%
(6.15%) (7.15%) (8.15%)
18,197,610$ 11,918,073$ 6,734,758$
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
57
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, 2020, the City had no outstanding amount of contributions to the pension plan required for the
year ended June 30, 2020.
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
non-taxable 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, 2020, the City
contributed a total of $80,310 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.
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 118 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, 2020
58
9. LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE (CONTINUED)
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 $30,000 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 $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s
total incurred costs within the second layer. (4) Incurred costs from $750,000 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 have a sub-limit of $40 million per occurrence. The coverage structure includes retained
risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the
various layers of 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 $50,000 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 $50,000 to $100,000 for each occurrence and is evaluated
as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to
statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2019-20, 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 as part of a reinsurance policy, 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, 2020
59
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
$50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2017 through
July 1, 2020. Each member of the Authority has a $10 million sub-limit during the 3-year policy term.
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 $17,672,158. There is a $10,000 deductible per occurrence except for non-emergency 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 $16,856,717. 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
$2,500 deductible. The fidelity coverage is provided through the Authority.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or
judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or
insured liability coverage in 2019-20.
10. CONTINGENCIES AND COMMITMENTS
Litigation
In the normal course of operations, the City has been named as a defendant in various claims and legal actions.
Generally, unfavorable results of these claims and legal actions are funded through the City’s participation in
California Joint Powers Insurance Authority (CJPIA, see Note 9) and, as such, the City believes that the
ultimate liability for these legal actions and claims will not have a material adverse effect on the City’s
financial statements. The City is also a defendant in legal actions for which the potential losses would not be
covered through participation in CJPIA.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
60
11. PROPERTY TAXES
Under California law, property taxes are assessed and collected by the counties up to one percent of assessed
value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated
to the cities based on complex formulas. Accordingly, the City accrues only those taxes, which are received
from the county within sixty days after year-end.
Lien date January 1
Levy date June 30
Due date November 1 and February 1
Collection dates December 10 and April 10
12. UNAVAILABLE REVENUES
The unavailable revenues in the fund financial statements of the City of Rancho Palos Verdes as of
June 30, 2020 are presented in the following table.
Revenue Measurable but Not Available (beyond 60 days):
Other Governmental Funds 52,632$
Total Unavailable Revenues 52,632$
13. OTHER REQUIRED FUND DISCLOSURES
The following department’s budget had expenditures in excess of the budget for the year ended June 30, 2020,
as follows:
Program Budget Expenditures Excess
General Fund:
Administration 5,935,956$ 6,319,098$ 383,142
Federal Grants Special Revenue Fund:
Public works - 15 15
Dr. Allen and Charlotte Ginsburg Cultural Arts
Building Special Revenue Fund:
Parks and recreation - 1,045 1,045
The State Grants Special Revenue Fund has a deficit fund balance of $214,935 at June 30, 2020. 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, 2020
of $13,500,565 which will be reduced by collection of future tax revenues.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
61
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.
Non-Liquid Assets
Prior to redevelopment dissolution, the County of Los Angeles pursuant to a Memorandum of Understanding
dated November 1, 1997 (discussed below) impounded property tax increment allocated to the former
redevelopment agency for payment of debt owed to the County. The balance of the impounded tax increment
not yet applied to debt at June 30, 2020 is $356,125.
Debt Summary
Balance Balance Amounts Due
July 1, 2019 Additions Deletions June 30, 2020 in One Year
Due to City:
Portuguese Bend 7,144,619$ 114,872$ (93,026)$ 7,166,465$ 114,872$
Abalone Cove 3,475,656 64,679 (50,091) 3,490,244 64,679
Due to County:
Tax Increment Bond 3,790,000 - (280,000) 3,510,000 310,000
Totals 14,410,275$ 179,551$ (423,117)$ 14,166,709$ 489,551$
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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
62
14. SUCCESSOR AGENCY (CONTINUED)
Consolidated Loan from City (Continued)
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, 2020, using the simple interest rate of 3%, the loan balance is $10,656,709.
Principal Interest Balance
Portuguese Bend 3,829,077$ 3,337,388$ 7,166,465$
Abalone Cove 2,155,967 1,334,277 3,490,244
Allowance from Successor Agency Receivable (5,985,044) (4,671,665) (10,656,709)
Totals -$ -$ -$
Due to the uncertainty of Redevelopment Property Tax Trust Fund revenue available for future loan
repayments, the City’s loan receivable of $10,656,709 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.
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 percent of tax
increment revenue to the Consolidated Fire Protection District of the County and 50.9 percent 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 percent 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.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
63
14. SUCCESSOR AGENCY (CONTINUED)
Tax Increment Bond and Deferred Interest Payable (Continued)
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 percent.
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.
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 percent 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 percent
compared to 7.7654 percent per the original Agreement. The recalculated deferred interest was $3,111,400. In
accordance with the MOU, the recalculated deferred interest does not accrue additional interest. As of June 30,
2014, the balance of the deferred interest debt has been completely repaid.
The California Department of Finance has approved the Tax Increment Bond and Deferred Interest Payable
as obligations of the Successor Agency.
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Notes to Financial Statements
June 30, 2020
64
14. SUCCESSOR AGENCY (CONTINUED)
Tax Increment Bond and Deferred Interest Payable (Continued)
The debt service schedule below summarizes all fixed principal and interest payments for the term of the
bond. Because the payback period for the deferred interest amount will fluctuate depending on the availability
of excess property tax revenue, no amounts have been included in the following schedule for repayment of
the deferred interest.
Year Ending June 30, Principal Interest Total
2021 310,000 167,750 477,750$
2022 345,000 151,375 496,375
2023 380,000 133,250 513,250
2024 415,000 113,375 528,375
2025 450,000 91,750 541,750
2026 - 2028 1,610,000 125,000 1,735,000
Totals 3,510,000$ 782,500$ 4,292,500$
15. ECONOMIC CHALLENGES OF 2020
On January 30, 2020, the World Health Organization (WHO) announced a global health emergency because
of an outbreak of a new strain of coronavirus (COVID-19 outbreak) and the risks that is posed to the
international community as the virus spread globally beyond its point of origin. In March 2020, the WHO
classified the COVID-19 outbreak as a pandemic based on the rapid increase in exposure globally.
The COVID-19 outbreak may have a continued material adverse impact on economic and market conditions,
triggering a period of global economic slowdown. Much like other local governments across the country, the
fiscal year 2020-2021, budget process incorporated the impact of the economic downturn which began during
the third quarter of FY 2019-20. The City’s solid financial foundation, financially conservative approach, and
stable property tax revenue, has moderated the impact of the economic disruption caused by the pandemic.
The sudden and unprecedented drop in TOT (Transient Occupancy Tax) revenue has resulted in reassessment
of the Capital Improvement Program (CIP), focusing on projects that were ranked the highest. Despite this,
the FY 2020-21 General Fund is estimated to maintain a healthy fund balance, however, the City cannot
estimate the length or gravity of the impact at this time. There will be fiscal challenges in the coming years
that the City will need to prepare for and it is more crucial now for the City to continue to be fiscally prudent
and produce a structurally balanced operating budget. The City will also continue to utilize a 5-Year Model
as an additional tool to engage in discussions and provide guidance in decision making.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Schedule of Proportionate Share of the Net Pension Liability
Last Ten Years*
As of the Fiscal Year Ended June 30, 2020
65
Fiscal year ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Measurement period 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 0.11631% 0.11334% 0.11218% 0.11120% 0.11130% 0.09183%
Plan's proportionate share of the net pension liability 11,918,073$ 10,921,840$ 11,124,689$ 9,625,397$ 7,637,567$ 5,714,320$
Plan's covered payroll 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 177.95% 171.70% 181.65% 160.49% 134.62% 101.88%
Plan's proportionate share of the fiduciary net position as 75.26% 75.26% 73.31% 74.06% 78.40% 76.48%
a percentage of the Plan's total pension liability
Plan's proportionate share of aggregate
employer contributions 1,440,684$ 1,235,073$ 1,096,042$ 998,812$ 919,858$ n/a
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
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 1st year of implementation, therefore only six years are shown.
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.
Miscellaneous
CITY OF RANCHO PALOS VERDES, CALIFORNIA
Schedule of Pension Contributions
Last Ten Years*
As of the Fiscal Year Ended June 30, 2020
66
Fiscal year ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Contractually required contribution (actuarially determined) 1,265,361$ 1,153,245$ 990,670$ 910,177$ 830,645$ 725,496$
Contributions in relation to the actuarially
determined contributions (1,265,361) (1,153,245) (990,670) (910,177) (830,645) (725,496)
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$
Covered payroll 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 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
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method Entry age Entry age Entry age Entry age Entry age Entry age
Amortization method (1) (1) (1) (1) (1) (1)
Asset valuation method Market Value Market Value Market Value Market Value Market Value 15 Year
Smoothed
Market Method
Inflation 2.625% 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases (2) (2) (2) (2) (2) (2)
Investment rate of return 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)
Mortality (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 1st year of implementation, therefore only six years are shown.
SUPPLEMENTARY INFORMATION
67
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 C - to account for sales taxes received from the County and used to support public transit and related
services.
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.
Abalone Cove Sewer Assessment - to account for property assessments used to partially pay for operation and
maintenance of the Abalone Cove sewer system.
Dr. Allen and Charlotte Ginsburg Cultural Arts Building - to account for a private donation to be used for either
construction of a building at the Upper Point Vicente Civic Center to be used for dancing and other cultural
activities, or for the purchase of open space within the City for habitat conservation and passive recreational
purposes.
68
(THIS PAGE INTENTIONALLY LEFT BLANK)
69
Special Revenue Fund Descriptions (Continued)
Donor Restricted Contributions - to account for donations received to construct or acquire recreational facilities
within the City.
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.
Federal Grants - to account for federal financial assistance programs.
State Grants - to account for state financial assistance programs.
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.
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 non-expendable 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 $1,000,000 non-expendable deposit. The interest earnings are used to pay for maintenance
and repair of Abalone Cove landslide abatement improvements.
Gas
Tax 1972 Act El Prado 1911 Act
Cash and investments 1,667,169$ 28,833$ 36,122$ 1,263,488$
Receivables:
Taxes - - 68 225,149
Interest 2,956 52 65 2,298
Notes - - - -
Other 119,360 - - -
TOTAL ASSETS 1,789,485$ 28,885$ 36,255$ 1,490,935$
Accounts payable and accrued liabilities 251,059$ -$ -$ 44,158$
Due to other funds - - - -
Retentions payable 12,190 - - -
Unearned revenue - - - -
TOTAL LIABILITIES 263,249 - - 44,158
Unavailable revenue - - -
Non-Spendable:
Endowment principal - - - -
Restricted 1,526,236 28,885 36,255 1,446,777
Unassigned - - - -
TOTAL FUND BALANCES 1,526,236 28,885 36,255 1,446,777
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 1,789,485$ 28,885$ 36,255$ 1,490,935$
FUND BALANCES
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Special Revenue Funds
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2020
70
Air Public
Waste Quality Safety
Reduction Management Proposition C Proposition A Grants Measure R Measure A
457,580$ 139,199$ 923,458$ 2,275,179$ 76,230$ 1,290,998$ -$
- - - - - - 93,963
796 243 1,591 4,677 190 2,268 -
- - - - - - -
14,065 13,320 - - - - 52,632
472,441$ 152,762$ 925,049$ 2,279,856$ 76,420$ 1,293,266$ 146,595$
17,687$ -$ 343,810$ 241,208$ -$ 29,225$ -$
- - - - - - 32,679
- - 1,528 21,217 - - -
- - - - - - -
17,687 - 345,338 262,425 - 29,225 32,679
- - - - - - 52,632
- - - - - - -
454,754 152,762 579,711 2,017,431 76,420 1,264,041 61,284
- - - - - - -
454,754 152,762 579,711 2,017,431 76,420 1,264,041 61,284
472,441$ 152,762$ 925,049$ 2,279,856$ 76,420$ 1,293,266$ 146,595$
(Continued)
Special Revenue Funds (Continued)
71
Dr. Allen and
Charlotte
Ginsburg Donor
Abalone Cove Cultural Restricted
Measure M Sewer Arts Building Contributions
Cash and investments 101,542$ 298,737$ -$ 782,214$
Receivables:
Taxes - - - -
Interest 228 546 - 1,410
Notes - - - -
Other - 1,092 - -
TOTAL ASSETS 101,770$ 300,375$ -$ 783,624$
Accounts payable and accrued liabilities 2,761$ 41,376$ -$ 1,670$
Due to other funds - - - -
Retentions payable - - - -
Unearned revenue - - - -
TOTAL LIABILITIES 2,761 41,376 - 1,670
Unavailable revenue - - - -
Non-Spendable:
Endowment principal - - - -
Restricted 99,009 258,999 - 781,954
Unassigned - - - -
TOTAL FUND BALANCES 99,009 258,999 - 781,954
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 101,770$ 300,375$ -$ 783,624$
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
LIABILITIES
ASSETS
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
June 30, 2020
72
Joint Powers
Improvement Community Total
Authority Development Special
Portuguese Block Grant Federal State Environmental Revenue
Bend (CDBG) Grants Grants Quimby Excise Tax Funds
83,862$ 12,677$ -$ -$ 1,176,249$ 362,364$ 10,975,901$
- - - - - - 319,180
330 - - - 2,121 547 20,318
- - - - - - -
- 32,057 - 230,427 - - 462,953
84,192$ 44,734$ -$ 230,427$ 1,178,370$ 362,911$ 11,778,352$
124$ 18,717$ -$ 8,900$ -$ 16,096$ 1,016,791$
- - - 419,029 - - 451,708
- - - 17,433 - - 52,368
- -$ - - - - -
124 18,717 - 445,362 - 16,096 1,520,867
- - - - - - 52,632
- - - - - - -
84,068 26,017 - - 1,178,370 346,815 10,419,788
- - - (214,935) - - (214,935)
84,068 26,017 - (214,935) 1,178,370 346,815 10,204,853
84,192$ 44,734$ -$ 230,427$ 1,178,370$ 362,911$ 11,778,352$
(Continued)
Special Revenue Funds (Continued)
73
Total
Low-Moderate Affordable Capital
Income Housing Projects
Housing In-Lieu Funds
Cash and investments 221,873$ 854,587$ 1,076,460$
Receivables:
Taxes - - -
Interest 348 1,541 1,889
Notes - - -
Other - - -
TOTAL ASSETS 222,221$ 856,128$ 1,078,349$
Accounts payable and accrued liabilities -$ -$ -$
Due to other funds - - -
Retentions payable - - -
Unearned revenue - - -
TOTAL LIABILITIES - - -
Unavailable revenue - - -
Non-Spendable:
Endowment principal - - -
Restricted 222,221 856,128 1,078,349
Unassigned - - -
TOTAL FUND BALANCES 222,221 856,128 1,078,349
TOTAL LIABILITIES, DEFERRED INFLOWS,
AND FUND BALANCES 222,221$ 856,128$ 1,078,349$
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Capital Projects Funds
June 30, 2020
CITY OF RANCHO PALOS VERDES
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
(CONTINUED)
74
Joint Powers Total
Subregion Improvement Total Other
Habitat One Authority Permanent Governmental
Restoration Maintenance Abalone Cove Funds Funds
810,537$ 771,379$ 1,124,863$ 2,706,779$ 14,759,140$
3,500 - - 3,500 322,680
1,461 1,388 4,750 7,599 29,806
- - - - -
- - - - 462,953
815,498$ 772,767$ 1,129,613$ 2,717,878$ 15,574,579$
-$ 1,535$ 1,251$ 2,786$ 1,019,577$
- - - - 451,708
- - - - 52,368
- - - - -
- 1,535 1,251 2,786 1,523,653
- - - - 52,632
165,317 750,000 1,000,000 1,915,317 1,915,317
650,181 21,232 128,362 799,775 12,297,912
- - - - (214,935)
815,498 771,232 1,128,362 2,715,092 13,998,294
815,498$ 772,767$ 1,129,613$ 2,717,878$ 15,574,579$
Permanent Funds
75
Gas
Tax 1972 Act El Prado 1911 Act
REVENUES:
Taxes -$ -$ 2,882$ 725,690$
Revenue from other agencies 1,655,763 - - -
Charges for services - - - -
Use of money and property 21,854 501 598 24,347
Other revenues 49,279 - - 208,102
TOTAL REVENUES 1,726,896 501 3,480 958,139
EXPENDITURES:
Current:
Public works 1,085,394 - - 970,974
Parks and recreation - - - -
TOTAL EXPENDITURES 1,085,394 - - 970,974
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 641,502 501 3,480 (12,835)
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES (USES) - - - -
NET CHANGE IN FUND BALANCES 641,502 501 3,480 (12,835)
FUND BALANCES -
BEGINNING OF YEAR 884,734 28,384 32,775 1,459,612
FUND BALANCES -
END OF YEAR 1,526,236$ 28,885$ 36,255$ 1,446,777$
Special Revenue Funds
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2020
76
Air Public
Waste Quality Safety
Reduction Management Proposition C Proposition A Grants Measure R Measure A
-$ -$ -$ -$ -$ -$ -$
22,269 53,834 686,691 827,835 155,948 514,282 93,963
194,632 - - - - - -
7,563 1,916 14,727 46,964 2,131 18,778 503
- - - - - - -
224,464 55,750 701,418 874,799 158,079 533,060 94,466
223,785 - 698,807 1,236,692 - 72,168 -
- - - - - - -
223,785 - 698,807 1,236,692 - 72,168 -
679 55,750 2,611 (361,893) 158,079 460,892 94,466
- - - - - - -
- - - - (175,000) - (100,000)
- - - - (175,000) - (100,000)
679 55,750 2,611 (361,893) (16,921) 460,892 (5,534)
454,075 97,012 577,100 2,379,324 93,341 803,149 66,818
454,754$ 152,762$ 579,711$ 2,017,431$ 76,420$ 1,264,041$ 61,284$
(Continued)
Special Revenue Funds (Continued)
77
Dr. Allen and
Charlotte
Ginsburg Donor
Abalone Cove Cultural Restricted
Measure M Sewer Arts Building Contributions
REVENUES:
Taxes -$ 52,379$ -$ -$
Revenue from other agencies 578,741 - - -
Charges for services - - - -
Use of money and property 1,877 7,675 - 13,660
Other revenues - - - 9,900
TOTAL REVENUES 580,618 60,054 - 23,560
EXPENDITURES:
Current:
Public works 525,316 138,009 - 3,406
Parks and recreation - - 1,045 13,363
TOTAL EXPENDITURES 525,316 138,009 1,045 16,769
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 55,302 (77,955) (1,045) 6,791
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES (USES) - - - -
NET CHANGE IN FUND BALANCES 55,302 (77,955) (1,045) 6,791
FUND BALANCE -
BEGINNING OF YEAR 43,707 336,954 1,045 775,163
FUND BALANCES -
END OF YEAR 99,009$ 258,999$ -$ 781,954$
Special Revenue Funds (Continued)
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2020
78
Joint Powers
Improvement Community Total
Authority Development Special
Portuguese Block Grant Federal State Environmental Revenue
Bend (CDBG) Grants Grants Quimby Excise Tax Funds
-$ -$ -$ -$ -$ -$ 780,951$
- 226,364 - 626,179 - - 5,441,869
- - - - - - 194,632
2,136 - - - 23,090 7,439 195,759
- - - - - 114,694 381,975
2,136 226,364 - 626,179 23,090 122,133 6,995,186
54,043 211,805 15 277,373 545,812 286,881 6,330,480
- - - - - - 14,408
54,043 211,805 15 277,373 545,812 286,881 6,344,888
(51,907) 14,559 (15) 348,806 (522,722) (164,748) 650,298
55,000 - - - - - 55,000
- - (98,300) - - - (373,300)
55,000 - (98,300) - - - (318,300)
3,093 14,559 (98,315) 348,806 (522,722) (164,748) 331,998
80,975 11,458 98,315 (563,741) 1,701,092 511,563 9,872,855
84,068$ 26,017$ -$ (214,935)$ 1,178,370$ 346,815$ 10,204,853$
(Continued)
Special Revenue Funds (Continued)
79
Total
Low-Moderate Affordable Capital
Income Housing Projects
Housing In-Lieu Funds
REVENUES:
Taxes 28,624$ -$ 28,624$
Revenue from other agencies - - -
Charges for services - - -
Use of money and property 3,237 14,846 18,083
Other revenues - 2,445 2,445
TOTAL REVENUES 31,861 17,291 49,152
EXPENDITURES:
Current:
Public works - - -
Parks and recreation - - -
TOTAL EXPENDITURES - - -
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 31,861 17,291 49,152
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out - - -
TOTAL OTHER FINANCING
SOURCES (USES) - - -
NET CHANGE IN FUND BALANCES 31,861 17,291 49,152
FUND BALANCES -
BEGINNING OF YEAR 190,360 838,837 1,029,197
FUND BALANCES -
END OF YEAR 222,221$ 856,128$ 1,078,349$
Capital Projects Funds
CITY OF RANCHO PALOS VERDES
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
(CONTINUED)
For the year ended June 30, 2020
80
Joint Powers Total
Subregion Improvement Total Other
Habitat One Authority Permanent Governmental
Restoration Maintenance Abalone Cove Funds Funds
-$ -$ -$ -$ 809,575$
- - - - 5,441,869
- - - - 194,632
15,225 13,442 26,260 54,927 268,769
3,500 - - 3,500 387,920
18,725 13,442 26,260 58,427 7,102,765
152,745 42,530 20,509 215,784 6,546,264
- - - - 14,408
152,745 42,530 20,509 215,784 6,560,672
(134,020) (29,088) 5,751 (157,357) 542,093
- 35,000 50,000 85,000 140,000
- - - - (373,300)
- 35,000 50,000 85,000 (233,300)
(134,020) 5,912 55,751 (72,357) 308,793
949,518 765,320 1,072,611 2,787,449 13,689,501
815,498$ 771,232$ 1,128,362$ 2,715,092$ 13,998,294$
Permanent Funds
81
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 1,772,400$ 1,772,400$ 1,655,763$ (116,637)$
Use of money and property 6,800 6,800 21,854 15,054
Other revenues 48,200 48,200 49,279 1,079
TOTAL REVENUES 1,827,400 1,827,400 1,726,896 (100,504)
EXPENDITURES:
Public works:
Street pavement maintenance 150,000 150,000 128,230 21,770
Street landscape maintenance 2,356,800 3,071,966 919,908 2,152,058
Traffic signal maintenance 10,000 10,000 12,506 (2,506)
Portuguese Bend road maintenance 70,000 70,000 24,750 45,250
TOTAL EXPENDITURES 2,586,800 3,301,966 1,085,394 2,216,572
NET CHANGE IN FUND BALANCE (759,400) (1,474,566) 641,502 2,116,068
FUND BALANCE - BEGINNING OF YEAR 884,734 884,734 884,734 -
FUND BALANCE - END OF YEAR 125,334$ (589,832)$ 1,526,236$ 2,116,068$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND
For the year ended June 30, 2020
82
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 300$ 300$ 501$ 201$
NET CHANGE IN FUND BALANCE 300 300 501 201
FUND BALANCE - BEGINNING OF YEAR 28,384 28,384 28,384 -
FUND BALANCE - END OF YEAR 28,684$ 28,684$ 28,885$ 201$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
1972 ACT SPECIAL REVENUE FUND
For the year ended June 30, 2020
83
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 2,300$ 2,300$ 2,882$ 582$
Use of money and property 200 200 598 398
TOTAL REVENUES 2,500 2,500 3,480 980
EXPENDITURES:
Public works 800 800 - 800
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,700 1,700 3,480 1,780
FUND BALANCE - BEGINNING OF YEAR 32,775 32,775 32,775 -
FUND BALANCE - END OF YEAR 34,475$ 34,475$ 36,255$ 1,780$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
EL PRADO SPECIAL REVENUE FUND
For the year ended June 30, 2020
84
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 606,800$ 606,800$ 725,690$ 118,890$
Use of money and property 21,200 21,200 24,347 3,147
Other revenues - - 208,102 208,102
TOTAL REVENUES 628,000 628,000 958,139 330,139
EXPENDITURES:
Public works 348,000 1,011,941 970,974 40,967
NET CHANGE IN FUND BALANCE 280,000 (383,941) (12,835) 371,106
FUND BALANCE - BEGINNING OF YEAR 1,459,612 1,459,612 1,459,612 -
FUND BALANCE - END OF YEAR 1,739,612$ 1,075,671$ 1,446,777$ 371,106$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
1911 ACT SPECIAL REVENUE FUND
For the year ended June 30, 2020
85
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 22,100$ 22,100$ 22,269$ 169$
Charges for services 185,000 185,000 194,632 9,632
Use of money and property 4,600 4,600 7,563 2,963
TOTAL REVENUES 211,700 211,700 224,464 12,764
EXPENDITURES:
Public works 304,100 304,100 223,785 80,315
NET CHANGE IN FUND BALANCE (92,400) (92,400) 679 93,079
FUND BALANCE - BEGINNING OF YEAR 454,075 454,075 454,075 -
FUND BALANCE - END OF YEAR 361,675$ 361,675$ 454,754$ 93,079$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
WASTE REDUCTION SPECIAL REVENUE FUND
For the year ended June 30, 2020
86
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 50,000$ 50,000$ 53,834$ 3,834$
Use of money and property 900 900 1,916 1,016
TOTAL REVENUES 50,900 50,900 55,750 4,850
EXPENDITURES:
Public works 50,000 50,000 - 50,000
NET CHANGE IN FUND BALANCE 900 900 55,750 54,850
FUND BALANCE - BEGINNING OF YEAR 97,012 97,012 97,012 -
FUND BALANCE - END OF YEAR 97,912$ 97,912$ 152,762$ 54,850$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AIR QUALITY MANAGEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2020
87
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 696,200$ 696,200$ 686,691$ (9,509)$
Use of money and property 6,200 6,200 14,727 8,527
TOTAL REVENUES 702,400 702,400 701,418 (982)
EXPENDITURES:
Public works 640,000 1,111,401 698,807 412,594
NET CHANGE IN FUND BALANCE 62,400 (409,001) 2,611 411,612
FUND BALANCE - BEGINNING OF YEAR 577,100 577,100 577,100 -
FUND BALANCE - END OF YEAR 639,500$ 168,099$ 579,711$ 411,612$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION C SPECIAL REVENUE FUND
For the year ended June 30, 2020
88
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 839,400$ 839,400$ 827,835$ (11,565)$
Use of money and property 10,000 10,000 46,964 36,964
TOTAL REVENUES 849,400 849,400 874,799 25,399
EXPENDITURES:
Public works 1,201,100 1,971,367 1,236,692 734,675
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (351,700) (1,121,967) (361,893) 760,074
NET CHANGE IN FUND BALANCE (351,700) (1,121,967) (361,893) 760,074
FUND BALANCE - BEGINNING OF YEAR 2,379,324 2,379,324 2,379,324 -
FUND BALANCE - END OF YEAR 2,027,624$ 1,257,357$ 2,017,431$ 760,074$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION A SPECIAL REVENUE FUND
For the year ended June 30, 2020
89
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 130,000$ 130,000$ 155,948$ 25,948$
Use of money and property 1,000 1,000 2,131 1,131
TOTAL REVENUES 131,000 131,000 158,079 27,079
OTHER FINANCING USES:
Transfers out (175,000) (175,000) (175,000) -
NET CHANGE IN FUND BALANCE (44,000) (44,000) (16,921) 27,079
FUND BALANCE - BEGINNING OF YEAR 93,341 93,341 93,341 -
FUND BALANCE - END OF YEAR 49,341$ 49,341$ 76,420$ 27,079$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC SAFETY GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2020
90
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 522,200$ 522,200$ 514,282$ (7,918)$
Use of money and property 23,200 23,200 18,778 (4,422)
TOTAL REVENUES 545,400 545,400 533,060 (12,340)
EXPENDITURES:
Public works 700,000 1,256,006 72,168 1,183,838
NET CHANGE IN FUND BALANCE (154,600) (710,606) 460,892 (1,196,178)
FUND BALANCE - BEGINNING OF YEAR 803,149 803,149 803,149 -
FUND BALANCE - END OF YEAR 648,549$ 92,543$ 1,264,041$ (1,196,178)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE R SPECIAL REVENUE FUND
For the year ended June 30, 2020
91
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 90,000$ 90,000$ 93,963$ 3,963$
Use of money and property 1,100 1,100 503 (597)
TOTAL REVENUES 91,100 91,100 94,466 3,366
OTHER FINANCING USES:
Transfers out (100,000) (100,000) (100,000) -
NET CHANGE IN FUND BALANCE (8,900) (8,900) (5,534) 3,366
FUND BALANCE - BEGINNING OF YEAR 66,818 66,818 66,818 -
FUND BALANCE - END OF YEAR 57,918$ 57,918$ 61,284$ 3,366$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE A SPECIAL REVENUE FUND
For the year ended June 30, 2020
92
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 591,800$ 591,800$ 578,741$ (13,059)$
Use of money and property 300 300 1,877 1,577
TOTAL REVENUES 592,100 592,100 580,618 (11,482)
EXPENDITURES:
Public works 536,000 536,000 525,316 10,684
NET CHANGE IN FUND BALANCE 56,100 56,100 55,302 (798)
FUND BALANCE - BEGINNING OF YEAR 43,707 43,707 43,707 -
FUND BALANCE - END OF YEAR 99,807$ 99,807$ 99,009$ (798)$
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
For the year ended June 30, 2020
Budgeted Amounts
93
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 55,100$ 55,100$ 52,379$ (2,721)$
Use of money and property 1,900 1,900 7,675 5,775
TOTAL REVENUES 57,000 57,000 60,054 3,054
EXPENDITURES:
Public works 648,100 648,100 138,009 510,091
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (591,100) (591,100) (77,955) 513,145
OTHER FINANCING SOURCES:
Transfers in 455,000 455,000 - (455,000)
NET CHANGE IN FUND BALANCE (136,100) (136,100) (77,955) 58,145
FUND BALANCE - BEGINNING OF YEAR 336,954 336,954 336,954 -
FUND BALANCE - END OF YEAR 200,854$ 200,854$ 258,999$ 58,145$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ABALONE COVE SEWER ASSESSMENT SPECIAL REVENUE FUND
For the year ended June 30, 2020
94
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 900$ 900$ -$ (900)$
EXPENDITURES:
Parks and recreation - - 1,045 (1,045)
NET CHANGE IN FUND BALANCE 900 900 (1,045) 145
FUND BALANCE - BEGINNING OF YEAR 1,045 1,045 1,045 -
FUND BALANCE - END OF YEAR 1,945$ 1,945$ -$ 145$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DR. ALLEN AND CHARLOTTE GINSBURG CULTURAL ARTS BUILDING
For the year ended June 30, 2020
SPECIAL REVENUE FUND
95
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 9,500$ 9,500$ 13,660$ 4,160$
Other revenue - - 9,900 9,900
TOTAL REVENUES 9,500 9,500 23,560 14,060
EXPENDITURES:
Public works 25,000 18,000 3,406 14,594
Parks and recreation - 25,000 13,363 11,637
TOTAL EXPENDITURES 25,000 43,000 16,769 26,231
NET CHANGE IN FUND BALANCE (15,500) (33,500) 6,791 (12,171)
FUND BALANCE - BEGINNING OF YEAR 775,163 775,163 775,163 -
FUND BALANCE - END OF YEAR 759,663$ 741,663$ 781,954$ (12,171)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DONOR RESTRICTED CONTRIBUTIONS SPECIAL REVENUE FUND
For the year ended June 30, 2020
96
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 1,100$ 1,100$ 2,136$ 1,036$
EXPENDITURES:
Public works 90,000 90,000 54,043 35,957
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (88,900) (88,900) (51,907) 36,993
OTHER FINANCING SOURCES:
Transfers in 55,000 55,000 55,000 -
NET CHANGE IN FUND BALANCE (33,900) (33,900) 3,093 36,993
FUND BALANCE - BEGINNING OF YEAR 80,975 80,975 80,975 -
FUND BALANCE - END OF YEAR 47,075$ 47,075$ 84,068$ 36,993$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY PORTUGUESE BEND
For the year ended June 30, 2020
SPECIAL REVENUE FUND
97
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 139,300$ 139,300$ 226,364$ 87,064$
EXPENDITURES:
Public works 150,600 346,095 211,805 134,290
NET CHANGE IN FUND BALANCE (11,300) (206,795) 14,559 221,354
FUND BALANCE - BEGINNING OF YEAR 11,458 11,458 11,458 -
FUND BALANCE - END OF YEAR 158$ (195,337)$ 26,017$ 221,354$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
For the year ended June 30, 2020
98
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 452,800$ 452,800$ -$ (452,800)$
Use of money and property 1,000 1,000 - (1,000)
TOTAL REVENUES 453,800 453,800 - (453,800)
EXPENDITURES:
Public works - - 15 (15)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 453,800 453,800 (15) (453,815)
OTHER FINANCING SOURCES:
Transfers out - (98,300) (98,300) -
NET CHANGE IN FUND BALANCE 453,800 355,500 (98,315) (453,815)
FUND BALANCE - BEGINNING OF YEAR 98,315 98,315 98,315 -
FUND BALANCE - END OF YEAR 552,115$ 453,815$ -$ (453,815)$
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FEDERAL GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2020
Budgeted Amounts
99
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies 600,000$ 600,000$ 626,179$ 26,179$
EXPENDITURES:
Public works - 557,206 277,373 279,833
NET CHANGE IN FUND BALANCE 600,000 42,794 348,806 306,012
FUND DEFICIT - BEGINNING OF YEAR (563,741) (563,741) (563,741) -
FUND BALANCE (DEFICIT) -
END OF YEAR 36,259$ (520,947)$ (214,935)$ 306,012$
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STATE GRANTS SPECIAL REVENUE FUND
For the year ended June 30, 2020
Budgeted Amounts
100
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 22,000$ 22,000$ 23,090$ 1,090$
TOTAL REVENUES 22,000 22,000 23,090 1,090
EXPENDITURES:
Public works - 846,624 545,812 300,812
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 22,000 (824,624) (522,722) 301,902
FUND BALANCE - BEGINNING OF YEAR 1,701,092 1,701,092 1,701,092 -
FUND BALANCE - END OF YEAR 1,723,092$ 876,468$ 1,178,370$ 301,902$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
QUIMBY SPECIAL REVENUE FUND
For the year ended June 30, 2020
101
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 3,800$ 3,800$ 7,439$ 3,639$
Other revenues - - 114,694 114,694
TOTAL REVENUES 3,800 3,800 122,133 118,333
EXPENDITURES:
Public works 310,000 310,000 286,881 23,119
NET CHANGE IN FUND BALANCE (306,200) (306,200) (164,748) 95,214
FUND BALANCE - BEGINNING OF YEAR 511,563 511,563 511,563 -
FUND BALANCE - END OF YEAR 205,363$ 205,363$ 346,815$ 95,214$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ENVIRONMENTAL EXCISE TAX SPECIAL REVENUE FUND
For the year ended June 30, 2020
102
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes 43,200$ 43,200$ 28,624$ (14,576)$
Use of money and property 1,500 1,500 3,237 -
NET CHANGE IN FUND BALANCE 44,700 44,700 31,861 (14,576)
FUND BALANCE - BEGINNING OF YEAR 190,360 190,360 190,360 -
FUND BALANCE - END OF YEAR 235,060$ 235,060$ 222,221$ (14,576)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LOW-MODERATE INCOME CAPITAL PROJECTS FUND
For the year ended June 30, 2020
103
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 6,200$ 6,200$ 14,846$ 8,646$
Other revenues - - 2,445 2,445
NET CHANGE IN FUND BALANCE 6,200 6,200 17,291 11,091
FUND BALANCE - BEGINNING OF YEAR 838,837 838,837 838,837 -
FUND BALANCE - END OF YEAR 845,037$ 845,037$ 856,128$ 11,091$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AFFORDABLE HOUSING IN-LIEU CAPITAL PROJECTS FUND
For the year ended June 30, 2020
104
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 12,400$ 12,400$ 15,225$ 2,825$
Other revenues - - 3,500 3,500
TOTAL REVENUES 12,400 12,400 18,725 6,325
EXPENDITURES:
Public works 179,500 179,500 152,745 26,755
NET CHANGE IN FUND BALANCE (167,100) (167,100) (134,020) 33,080
FUND BALANCE - BEGINNING OF YEAR 949,518 949,518 949,518 -
FUND BALANCE - END OF YEAR 782,418$ 782,418$ 815,498$ 33,080$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HABITAT RESTORATION PERMANENT FUND
For the year ended June 30, 2020
105
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 8,100$ 8,100$ 13,442$ 5,342$
EXPENDITURES:
Public works 46,800 46,800 42,530 4,270
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (38,700) (38,700) (29,088) 1,072
OTHER FINANCING SOURCES:
Transfers in 35,000 35,000 35,000 -
NET CHANGE IN FUND BALANCE (3,700) (3,700) 5,912 1,072
FUND BALANCE - BEGINNING OF YEAR 765,320 765,320 765,320 -
FUND BALANCE - END OF YEAR 761,620$ 761,620$ 771,232$ 1,072$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SUBREGION ONE PERMANENT FUND
For the year ended June 30, 2020
106
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 3,400$ 3,400$ 26,260$ 22,860$
EXPENDITURES:
Public works 56,000 56,000 20,509 35,491
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (52,600) (52,600) 5,751 (12,631)
OTHER FINANCING SOURCES:
Transfers in 50,000 50,000 50,000 -
NET CHANGE IN FUND BALANCE (2,600) (2,600) 55,751 (12,631)
FUND BALANCE - BEGINNING OF YEAR 1,072,611 1,072,611 1,072,611 -
FUND BALANCE - END OF YEAR 1,070,011$ 1,070,011$ 1,128,362$ (12,631)$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
JOINT POWERS IMPROVEMENT AUTHORITY ABALONE COVE PERMANENT FUND
For the year ended June 30, 2020
107
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 285,500$ 285,500$ 471,473$ 185,973$
EXPENDITURES:
Capital outlay:
Street improvements 4,060,000 5,469,694 3,664,069 1,805,625
Parks/Trails/Open Space improvements 1,075,000 1,026,309 60,486 965,823
Sewer improvements - 53,286 34,639 18,647
Building improvements 150,000 385,101 36,748 348,353
Storm water quality improvements 3,632,000 4,105,429 460,225 3,645,204
Landslide improvements 1,000,000 1,972,949 396,741 1,576,208
TOTAL EXPENDITURES 9,917,000 13,012,768 4,652,908 8,359,860
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (9,631,500) (12,727,268) (4,181,435) 8,545,833
OTHER FINANCING SOURCES (USES):
Transfers in 3,976,900 2,617,300 2,509,052 (108,248)
Transfers out (455,000) (455,000) - 455,000
TOTAL FINANCING SOURCES (USES) 3,521,900 2,162,300 2,509,052 346,752
NET CHANGE IN FUND BALANCE (6,109,600) (10,564,968) (1,672,383) 8,892,585
FUND BALANCE - BEGINNING OF YEAR 27,017,191 27,017,191 27,017,191 -
FUND BALANCE - END OF YEAR 20,907,591$ 16,452,223$ 25,344,808$ 8,892,585$
Budgeted Amounts
CITY OF RANCHO PALOS VERDES
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND
For the year ended June 30, 2020
108
STATISTICAL SECTION
109
STATISTICAL SECTION
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 Page
Financial Trends 110
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 120
These schedules contain information to help the reader assess the City’s most
significant local revenue source, property tax.
Debt Capacity 127
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 130
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 135
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.
2011 2012 2013 2014 2015
Governmental activities
Net investment in capital assets 115,145$ 114,488$ 113,284$ 114,427$ 119,450$
Restricted 1,750 1,750 1,835 11,792 11,647
Unrestricted 39,066 67,112 46,687 46,679 42,208
Total governmental activities net position 155,961$ 183,351$ 161,806$ 172,898$ 173,305$
Business-type activities
Net investment in capital assets 12,753$ 13,356$ 18,319$ 29,557$ 31,168$
Restricted - - - - -
Unrestricted 3,365 3,532 9,727 5,317 5,334
Total business-type activities net position 16,118$ 16,888$ 28,046$ 34,874$ 36,502$
Primary government
Net investment in capital assets 127,898$ 127,845$ 131,603$ 143,984$ 150,618$
Restricted 1,750 1,750 1,835 11,792 11,647
Unrestricted 42,431 70,644 56,414 51,996 47,542
Total primary government net position 172,079$ 200,238$ 189,852$ 207,772$ 209,807$
City of Rancho Palos Verdes
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
110
2016 2017 2018 2019 2020
Governmental activities
Net investment in capital assets 118,399$ 123,437$ 125,420$ 159,557$ 156,763$
Restricted 21,120 19,387 17,300 16,170 24,129
Unrestricted 42,210 43,618 44,168 47,739 38,568
Total governmental activities net position 181,729$ 186,442$ 186,888$ 223,466$ 219,460$
Business-type activities
Net investment in capital assets 31,663$ 31,311$ 34,996$ -$ -$
Restricted - - - - -
Unrestricted 5,598 4,600 (128) - -
Total business-type activities net position 37,261$ 35,911$ 34,868$ -$ -$
Primary government
Net investment in capital assets 150,062$ 154,748$ 160,416$ 159,557$ 156,763$
Restricted 21,120 19,387 17,300 16,170 24,129
Unrestricted 47,808 48,218 44,040 47,739 38,568
Total primary government net position 218,990$ 222,353$ 221,756$ 223,466$ 219,460$
City of Rancho Palos Verdes
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
111
2011 2012 2013 2014 2015
Expenses
Governmental activities:
Administration 5,997$ 5,906$ 5,534$ 7,530$ 7,048$
Public safety 4,335 4,178 4,348 4,429 4,670
Public works 10,389 11,202 10,874 9,377 10,771
Community development 2,622 2,432 2,526 1,927 2,072
Parks and recreation 1,391 1,490 1,696 1,369 1,669
Non-departmental - - - 35 191
Interest on long-term debt 260 109 - - -
Total governmental activities expenses 24,994 25,318 24,978 24,667 26,421
Business-type activities:
Water Quality Flood Protection 489 560 594 659 1,422
Total primary government expenses 25,483$ 25,878$ 25,572$ 25,326$ 27,843$
Program Revenues
Governmental activities:
Charges for services:
Administration 654$ 747$ 779$ 120$ 108$
Public safety 261 194 150 42 43
Public works 622 684 543 169 432
Community development 1,714 1,644 1,854 1,772 2,058
Parks and recreation 457 503 476 18 144
Non-departmental - - - -
Operating grants and contributions 3,689 3,628 4,133 2,506 2,274
Capital grants and contributions 5 139 139 2,912 1,230
Total governmental activities program revenues 7,402 7,538 8,074 7,539 6,289
Business-type activities:
Charges for services:
Water Quality Flood Protection 1,312 1,319 1,313 1,361 1,369
Operating grants and contributions - - 2,137 - -
Capital grants and contributions - - - 6,115 1,213
Total business-type activities program revenues 1,312 1,319 3,450 7,476 2,582
Total primary government program revenues 8,714$ 8,857$ 11,524$ 15,015$ 8,871$
Net (expense)/revenue
Governmental activities (17,592)$ (17,780)$ (16,904)$ (17,128)$ (20,132)$
Business-type activities 823 759 2,856 6,817 1,159
Total primary government net expense (16,769)$ (17,022)$ (14,048)$ (10,311)$ (18,973)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 11,854$ 11,480$ 11,284$ 11,991$ 12,452$
Transient occupancy tax 2,640 3,349 3,790 4,250 4,812
Sales taxes 1,548 1,449 1,588 1,642 1,758
Franchise taxes 1,825 1,881 1,907 1,998 2,045
Utility user taxes 2,407 2,333 2,481 2,510 1,973
Other taxes 814 674 778 1,589 1,564
Investment income 318 604 184 94 122
Other 271 52 929 4,146 3,231
Transfers - - (8,293) - (458)
Extraordinary item - 23,348 (19,289) -
Total governmental activities 21,677 45,170 (4,641) 28,220 27,499
Business-type activities:
Investment income 13 11 10 11 10
Other - - - - -
Transfers - - 8,293 - 458
Total business-type activities 13 11 8,303 11 468
Total primary government 21,690$ 45,181$ 3,662$ 28,231$ 27,967$
Change in Net Position
Governmental activities 4,085$ 27,390$ (21,545)$ 11,092$ 7,367$
Business-type activities 836 770 11,159 6,828 1,627
Total primary government net expense 4,921$ 28,159$ (10,386)$ 17,920$ 8,994$
City of Rancho Palos Verdes
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
112
2016 2017 2018 2019 2020
Expenses
Governmental activities:
Administration 8,062$ 6,746$ 7,258$ 6,563$ 8,013$
Public safety 5,215 6,534 7,339 7,214 7,360
Public works 9,610 10,638 16,073 16,064 18,182
Community development 1,971 2,664 2,726 3,052 2,857
Parks and recreation 2,052 2,434 2,736 3,064 2,857
Non-departmental 134 2,400 1,166 1,134 1,192
Interest on long-term debt - - - - -
Total governmental activities expenses 27,044 31,416 37,298 37,091 40,461
Business-type activities:
Water Quality Flood Protection 646 1,400 1,071 811 -
Total primary government expenses 27,690$ 32,816$ 38,369$ 37,902$ 40,461$
Program Revenues
Governmental activities:
Charges for services:
Administration 318$ 1,081$ 1,032$ 1,065$ 1,064$
Public safety 179 140 124 104 111
Public works 159 274 659 227 309
Community development 958 2,066 729 2,130 1,793
Parks and recreation 781 708 2,083 766 579
Non-departmental 96 - - - -
Operating grants and contributions 2,332 4,196 4,481 4,608 4,605
Capital grants and contributions 1,111 818 769 1,137 625
Total governmental activities program revenues 5,934 9,283 9,877 10,037 9,086
Business-type activities:
Charges for services:
Water Quality Flood Protection 1,385 11 - - -
Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenues 1,385 11 - - -
Total primary government program revenues 7,319$ 9,294$ 9,877$ 10,037$ 9,086$
Net (expense)/revenue
Governmental activities (21,110)$ (22,133)$ (27,421)$ (27,054)$ (31,375)$
Business-type activities 738 (1,389) (1,071) (811) -
Total primary government net expense (20,372)$ (23,522)$ (28,492)$ (27,865)$ (31,375)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 13,764$ 13,302$ 13,762$ 14,350$ 14,994$
Transient occupancy tax 5,197 5,601 5,615 5,645 3,910
Sales taxes 2,104 2,463 2,129 2,661 2,163
Franchise taxes 2,045 1,985 1,838 2,150 2,146
Utility user taxes 1,866 1,775 403 1,917 1,912
Other taxes 1,179 365 2,520 429 395
Investment income 214 434 838 1,313 1,225
Other 2,608 920 763 909 626
Transfers - - - 34,258 -
Extraordinary item - - - - -
Total governmental activities 28,977 26,845 27,868 63,632 27,371
Business-type activities:
Investment income 21 35 29 - -
Other - - - 200 -
Transfers - 3 - (34,258) -
Total business-type activities 21 38 29 (34,058) -
Total primary government 28,998$ 26,883$ 27,897$ 29,574$ 27,371$
Change in Net Position
Governmental activities 7,868$ 4,713$ 447$ 36,578$ (4,004)$
Business-type activities 759 (1,351) (1,042) (34,869) -
Total primary government net expense 8,627$ 3,362$ (595)$ 1,709$ (4,004)$
City of Rancho Palos Verdes
(amounts expressed in thousands)
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position
113
114
(THIS PAGE INTENTIONALLY LEFT BLANK)
Transient Utility
Fiscal Property Occupancy Sales Franchise Users Other
Year Tax Tax Tax Tax Tax Taxes Total
2011 11,854 2,640 1,518 1,825 2,407 1,175 21,419
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
Source
City General Ledger
City of Rancho Palos Verdes
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts expressed in thousands)
115
2011 2012 2013 2014 2015
General Fund
Non-Spendable 7,515$ 7,493$ 138$ 144$ 598$
Restricted - - - - -
Committed - - - - -
Assigned - - - - -
Unassigned 11,385 12,464 14,370 15,474 16,055
Total General Fund 18,900$ 19,957$ 14,508$ 15,618$ 16,653$
All other Governmental Funds
Non-Spendable
Special Revenue Funds 4,818$ 3,066$ -$ -$ -$
Debt Service Fund 573 - - -
Capital Projects Funds - - -
Permanent Fund 1,750 1,750 1,835 1,845 1,855
Restricted
Special Revenue Funds 7,952 8,187 7,849 8,445 8,362
Capital Projects Funds 313 - - -
Permanent Fund 319 226 280 1,502 1,492
Committed
Special Revenue Funds 36 58 55
Capital Projects Funds - - -
Permanent Fund - - -
Assigned
Special Revenue Funds - 794 572
Capital Projects Funds 11,650 15,407 13,084 18,535 21,078
Permanent Fund - - -
Unassigned
Special Revenue Funds (126) (108) (198) (116) (59)
Debt Service Fund (19,687) - - -
Capital Projects Funds - - -
Permanent Fund - - -
Total all other Governmental Funds 7,562$ 28,528$ 22,885$ 31,063$ 33,355$
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
116
2016 2017 2018 2019 2020
General Fund
Non-Spendable 564$ 190$ 913$ 1,016$ 249$
Restricted - - - - -
Committed 802 964 715 341 167
Assigned - - - - -
Unassigned 13,702 15,671 16,450 19,431 21,333
Total General Fund 15,068$ 16,825$ 18,078$ 20,788$ 21,749$
All other Governmental Funds
Non-Spendable
Special Revenue Funds -$ -$ -$ -$ -$
Debt Service Fund - - - - -
Capital Projects Funds - - - - -
Permanent Fund 1,866 1,877 1,889 1,902 1,915
Restricted
Special Revenue Funds 9,757 11,702 12,825 10,437 10,420
Capital Projects Funds 3,000 4,660 1,438 2,946 2,458
Permanent Fund 1,312 1,148 1,148 885 800
Committed
Special Revenue Funds 353 - - - -
Capital Projects Funds 3,467 - - - -
Permanent Fund - - - - -
Assigned
Special Revenue Funds 476 479 - - -
Capital Projects Funds 23,902 23,149 23,942 25,100 23,965
Permanent Fund - - - - -
Unassigned
Special Revenue Funds - - - (564) (215)
Debt Service Fund - - - - -
Capital Projects Funds - - - - -
Permanent Fund - - - - -
Total all other Governmental Funds 44,133$ 43,015$ 41,242$ 40,706$ 39,343$
City of Rancho Palos Verdes
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
117
2011 2012 2013 2014 2015
Revenues
Taxes 21,419$ 21,867$ 22,543$ 23,981$ 24,603$
Licenses and permits 1,933 1,806 2,027 1,951 2,515
Fines and forfeitures 210 159 117 128 135
Use of money and property 1,560 1,350 1,383 846 653
Charges for services 73 149 141 323 427
Donation - - 445 - -
Revenues from other agencies 3,162 3,421 3,395 5,301 3,794
Other Revenues 229 259 741 3,068 2,377
Total Revenues 28,586 29,011 30,791 35,598 34,504
Expenditures
Administration 5,503 5,726 5,401 5,792 5,135
Public Safety 4,335 4,178 4,348 4,492 4,761
Public Works 7,875 7,616 7,240 7,611 8,042
Parks and Recreation 1,257 1,479 1,557 1,573 1,819
Community Development 2,784 2,484 2,591 2,640 2,870
Non-Departmental - - - 35 190
Pass Through to other agencies - - - - -
Capital Outlay 2,557 3,155 2,721 4,113 8,697
Debt Service
Principal 423 464 - - -
Interest 887 498 - - -
Total Expenditures 25,621 25,599 23,857 26,256 31,514
Excess of Revenues over (under) Expenditures 2,965 3,412 6,934 9,342 2,990
Other Financing Sources (uses)
Sales of capital assets 350 - - - -
Transfers in 8,944 8,226 7,954 10,424 13,525
Transfers out (8,944) (7,856) (16,247) (10,479) (13,188)
Bond Proceeds - - - - -
Advances to the Redevelopment Agency - - - - -
Total Other Financing Sources (uses) 350 371 (8,293) (55) 337
Extraordinary Gain (Loss) - 18,240 (6,743) - -
Net change in Fund Balances 3,315$ 22,023$ (8,102)$ 9,287$ 3,327$
Cost of Assets Capitalized 3,180 2,865 2,022 4,820 8,490
Debt Services as a percentage of Non-Capital
Expenditures 5.8% 4.2% 0.0% 0.0% 0.0%
City of Rancho Palos Verdes
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual basis of Accounting)
(Amounts expressed in thousands)
118
2016 2017 2018 2019 2020
Revenues
Taxes 25,725$ 25,491$ 26,266$ 28,098$ 26,416$
Licenses and permits 2,383 3,044 3,095 2,205 1,917
Fines and forfeitures 180 153 144 331 365
Use of money and property 750 415 714 1,656 1,446
Charges for services 558 1,072 1,113 215 203
Revenues from other agencies 3,443 5,117 5,345 5,158 5,442
Other revenues 1,668 732 1,038 1,026 1,009
Total Revenues 34,707 36,024 37,715 38,689 36,798
Expenditures
Administration 6,183 5,445 5,867 5,581 6,319
Public Safety 5,215 6,534 7,399 7,214 7,360
Public Works 7,961 9,084 11,068 13,546 12,260
Parks and Recreation 2,042 2,175 2,493 2,769 2,548
Community Development 2,619 2,664 2,736 3,052 2,857
Non-Departmental 238 2,400 1,167 1,134 1,204
Pass Through to other agencies - - - - -
Capital Outlay 1,344 7,106 7,504 3,291 4,653
Debt Service
Principal - - - - -
Interest - - - - -
Total Expenditures 25,602 35,408 38,234 36,587 37,201
Excess of Revenues over (under) Expenditures 9,105 616 (519) 2,102 (403)
Other Financing Sources (uses)
Sales of capital assets - - - - -
Transfers in 11,784 4,577 5,044 6,027 2,924
Transfers out (11,784) (4,577) (5,044) (5,954) (2,924)
Bond Proceeds - - - - -
Advances to the Redevelopment Agency - - - - -
Total Other Financing Sources (uses) - - - 73 -
Extraordinary Gain (Loss) - - - - -
Net change in Fund Balances 9,105$ 616$ (519)$ 2,175$ (403)$
Cost of Assets Capitalized 2,398 8,228 8,228 5,496 4,058
Debt Services as a percentage of Non-Capital Expenditur 0.0% 0.0% 0.0% 0.0% 0.0%
City of Rancho Palos Verdes
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual basis of Accounting)
(Amounts expressed in thousands)
119
Fiscal
Year Residential Commercial Industrial Other Unsecured
End Property Property Property Property Property
2011 8,362,052 396,195 3,333 570,551 45,258
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
2010-2013 & 2006-07 County Assessor data, Avenu Insights & Analytics
2008-2009 data is provided from previously published CAFR's
Unitary value of $840,000 is excluded.
City of Rancho Palos Verdes
Assessed Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
Source
120
City Estimated Assessed
Fiscal Less Taxable Direct Actual Factor of Value as a
Year Tax-Exempt Assessed Tax Taxable Taxable Percentage of
End Property Value Rate (1) Value (2) Assessed Value (3) Actual Value
2011 158,388 9,219,001 0.063728 9,067,313$ 0.98355 101.67%
2012 157,307 9,468,372 0.063728 10,683,820$ 1.12837 88.62%
2013 174,167 9,704,237 0.063728 11,390,239$ 1.17374 85.20%
2014 153,434 10,223,889 0.063728 13,967,877$ 1.36620 73.20%
2015 151,709 10,556,029 0.063728 13,571,675$ 1.28568 77.78%
2016 155,138 11,184,820 0.063728 15,366,477$ 1.37387 72.79%
2017 174,779 11,662,598 0.063728 17,011,415$ 1.45863 68.56%
2018 180,953 12,215,635 0.063728 15,669,728$ 1.28276 77.96%
2019 184,447 12,901,730 0.063728 17,984,167$ 1.39393 71.74%
2020 171,367 13,478,385 0.063728 17,927,678$ 1.33011 75.18%
City of Rancho Palos Verdes
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
Source
(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.
2010-2013 & 2006-07 County Assessor data, Avenu Insights & Analytics
2008-2009 data is provided from previously published CAFR's
Unitary value of $840,000 is excluded.
121
2010-11 2011-12 2012-13 2013-14 2014-15
CITY DIRECT RATE 0.063728 0.063728 0.063728 0.063728 0.063728
All other direct rates:
LA COUNTY GENERAL 0.441223 0.441223 0.441223 0.441223 0.441223
LA COUNTY ACCUM CAP OUTLAY 0.000110 0.000110 0.000110 0.000110 0.000110
CONSOL. FIRE PRO.DIST OF LA CO. 0.169715 0.169715 0.169715 0.169715 0.169715
LA CO. FIRE-FFW 0.006910 0.006910 0.006910 0.006910 0.006910
LA CO.FL.CON.DR.IMP.DIST.MAINT. 0.002597 0.002597 0.002597 0.002597 0.002597
LA CO FLOOD CONTROL MAINT 0.014699 0.014699 0.014699 0.014699 0.014699
PALOS VERDES LIBRARY DIST MAINT 0.043470 0.043470 0.043470 0.043470 0.043470
LA CO WEST VECTOR CONTROL DIST. 0.000319 0.000319 0.000319 0.000319 0.000319
CO SANITATION DIST NO 5 OPERAT 0.017499 0.017499 0.017499 0.017499 0.017499
WTR REPLENISHMENT DIST OF SO CAL 0.000181 0.000181 0.000181 0.000181 0.000181
ERAF 0.000000 0.000000 0.000000 0.000000 0.000000
EDUCATIONAL AUG FD IMPOUND 0.000000 0.000000 0.000000 0.000000 0.000000
COUNTY SCHOOL SERVICES 0.001369 0.001369 0.001369 0.001369 0.001369
CHILDREN'S INSTIL TUITION FUND 0.002717 0.002717 0.002717 0.002717 0.002717
LA CITY COMM COLLEGE DIST 0.029214 0.029214 0.029214 0.029214 0.029214
LA COMM COLL CHILDREN'S CTR FD 0.000302 0.000302 0.000302 0.000302 0.000302
PALOS VERDES PENINSULA USD 0.196986 0.196986 0.196986 0.196986 0.196986
CO.SCH.SERV.FD-LOS ANGELES 0.008085 0.008085 0.008085 0.008085 0.008085
DEV.CTR.HDCPD MINOR-LA UNIF. 0.000876 0.000876 0.000876 0.000876 0.000876
TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Debt Service Rates
COUNTY 0.000000 0.000000 0.000000 0.000000 0.000000
PALOS VERDES PEN USD 0.022493 0.022511 0.024102 0.023109 0.023289
COMMNTY COLLEGE 0.040310 0.035296 0.048750 0.044541 0.040174
PALOS VERDES LIB 0.006719 0.006359 0.006441 0.006118 0.005854
FLOOD CONTROL 0.000000 0.000000 0.000000 0.000000 0.000000
METRO WATER DIST 0.003700 0.003700 0.003500 0.003500 0.003500
TOTAL 0.073222 0.067866 0.082793 0.077268 0.072817
TOTAL TAX RATE 1.073222 1.067866 1.082793 1.077268 1.072817
Source
2010-2015 County Assessor data, Avenu Insights & Analytics
2007-2009 data is provided from previously published CAFR's
City has no separate debt service rate, direct rate is 100% operating.
TRA 149 is represented for this report.
City of Rancho Palos Verdes
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
122
2015-16 2016-17 2017-18 2018-19 2019-20
CITY DIRECT RATE 0.063728 0.063728 0.063728 0.063728 0.063728
All other direct rates:
LA COUNTY GENERAL 0.441223 0.441223 0.441223 0.441223 0.441223
LA COUNTY ACCUM CAP OUTLAY 0.000110 0.000110 0.000110 0.000110 0.000110
CONSOL. FIRE PRO.DIST OF LA CO. 0.169715 0.169715 0.169715 0.169715 0.169715
LA CO. FIRE-FFW 0.006910 0.006910 0.006910 0.006910 0.006910
LA CO.FL.CON.DR.IMP.DIST.MAINT. 0.002597 0.002597 0.002597 0.002597 0.002597
LA CO FLOOD CONTROL MAINT 0.014699 0.014699 0.014699 0.014699 0.014699
PALOS VERDES LIBRARY DIST MAINT 0.043470 0.043470 0.043470 0.043470 0.043470
LA CO WEST VECTOR CONTROL DIST. 0.000319 0.000319 0.000319 0.000319 0.000319
CO SANITATION DIST NO 5 OPERAT 0.017499 0.017499 0.017499 0.017499 0.017499
WTR REPLENISHMENT DIST OF SO CAL 0.000181 0.000181 0.000181 0.000181 0.000181
ERAF 0.000000 0.000000 0.000000 0.000000 0.000000
EDUCATIONAL AUG FD IMPOUND 0.000000 0.000000 0.000000 0.000000 0.000000
COUNTY SCHOOL SERVICES 0.001369 0.001369 0.001369 0.001369 0.001369
CHILDREN'S INSTIL TUITION FUND 0.002717 0.002717 0.002717 0.002717 0.002717
LA CITY COMM COLLEGE DIST 0.029214 0.029214 0.029214 0.029214 0.029214
LA COMM COLL CHILDREN'S CTR FD 0.000302 0.000302 0.000302 0.000302 0.000302
PALOS VERDES PENINSULA USD 0.196986 0.196986 0.196986 0.196986 0.196986
CO.SCH.SERV.FD-LOS ANGELES 0.008085 0.008085 0.008085 0.008085 0.008085
DEV.CTR.HDCPD MINOR-LA UNIF. 0.000876 0.000876 0.000876 0.000876 0.000876
TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Debt Service Rates
COUNTY 0.000000 0.000000 0.000000 0.000000 0.000000
PALOS VERDES PEN USD 0.023433 0.023197 0.023093 0.023709 0.023589
COMMNTY COLLEGE 0.035755 0.035956 0.045990 0.046213 0.027175
PALOS VERDES LIB 0.005630 0.000000 0.000000 0.000000 0.000000
FLOOD CONTROL 0.000000 0.000000 0.000000 0.000000 0.000000
METRO WATER DIST 0.003500 0.003500 0.003500 0.003500 0.003500
TOTAL 0.068318 0.062653 0.072583 0.073422 0.054264
TOTAL TAX RATE 1.068318 1.062653 1.072583 1.073422 1.054264
Source
2010-2015 County Assessor data, Avenu Insights & Analytics
2007-2009 data is provided from previously published CAFR's
City has no separate debt service rate, direct rate is 100% operating.
TRA 149 is represented for this report.
City of Rancho Palos Verdes
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
123
Percentage of Percentage of
Taxable Total City Taxable Taxable Total City Taxable
Taxpayer Value ($) Rank Value (%) Value ($) Rank Value (%)
Long Point Development Llc 473,436,375 1 3.51% 329,854,761 1 3.58%
Gs Palos Verdes Llc 112,578,123 2 0.84%
Roic California Llc 69,124,176 3 0.51%
P V Victoria Apartments Llc 54,179,298 4 0.40% 46,703,821 3 0.51%
6507 6510 Vista Catalina Apts 42,601,443 5 0.32%
Western Riviera Investors Et Al 33,507,168 6 0.25% 28,468,344 6 0.31%
Golden Cove Center Llc 31,404,002 7 0.23% 25,948,345 8 0.28%
Ocean View Drive Inc 28,066,682 8 0.21%
California Water Service Co 26,679,365 9 0.20% 8,116,888 16 0.09%
Belmont Village Rpv Lp 26,493,757 10 0.20% 22,232,551 10 0.24%
Johnson Eric C Co Tr 18,307,846 11 0.14% 18,233,759 12 0.20%
Wlp Westmont Plaza Llc 16,263,979 12 0.12%
Vh Property Corp 14,621,777 13 0.11% 45,259,624 4 0.49%
American Golf, Inc 13,530,578 14 0.10%
Vhps Llc 12,306,527 15 0.09% 21,036,463 11 0.23%
Chang Jacqueline 9,775,681 16 0.07%
Victoria Apartments 8,980,589 17 0.07% 7,763,471 17 0.08%
Thornecrest Llc 8,969,237 18 0.07%
Palos Verdes Terrace Ltd 8,798,777 19 0.07% 7,605,139 18 0.08%
Wei Lai Development Llc 8,628,320 20 0.06%
Xcx Bear Llc 8,387,488 21 0.06%
Bruning Fred W Co Tr 8,360,433 22 0.06%
Aa Homes Llc 8,113,636 23 0.06%
Maleenont Voravat 8,090,130 24 0.06%
Wang Lisa 8,050,785 25 0.06%
Ppc Villas Rpv Llc 63,710,973 2 0.69%
Terraces Rancho Palos Verdes L 35,148,602 5 0.38%
Ppc Palos Verdes Llc 25,972,775 7 0.28%
Cox Com Inc. Orange 23,912,452 9 0.26%
Tridiamond Llc 13,311,514 13 0.14%
York Point View Properties Llc 9,577,246 14 0.10%
Kariger Brian P 8,330,210 15 0.09%
Ruffin Phillip G 7,575,000 19 0.08%
Saitta Christopher L 6,557,865 20 0.07%
Amdan Investment Llc Lessee 6,550,000 21 0.07%
Gerts Igor Anna 6,458,000 22 0.07%
Labarba James G 6,087,262 23 0.07%
Imbach Scott A Diane Y 5,977,923 24 0.06%
Clow Leland E Ilene F 5,836,697 25 0.06%
Total Top 25 Taxpayers 1,059,256,172$ 7.86% 786,229,685$ 8.53%
Total Taxable Value 13,478,384,971$ 100.00%9,219,000,927$ 100.00%
Source
Los Angeles County Assessor data, MuniServices, LLC / an Avenu Insights & Analytics Company
City of Rancho Palos Verdes
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2019-20 2010-11
124
Total Tax
Fiscal Levy for Percentage Collections in Percentage
Year Fiscal Year Amount of Levy Subsequent Years Amount of Levy
2011* 5,597 5,462 97.59% 0 5,462 97.59%
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%
Source
County Assessor General Ledger, MuniServices, LLC / Avenu Insights & Analytics
* Includes 1% secured apportionment only
Fiscal Year of the Levy Total Collections to Date
City of Rancho Palos Verdes
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Collected within the
125
126
(THIS PAGE INTENTIONALLY LEFT BLANK)
2018-19 Assessed Valuation: $13,547,204,627
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2020 % Applicable (1)Debt 6/30/20
Metropolitan Water District $37,300,000 0.438% $163,374
Los Angeles Community College District 4,234,460,000 1.495% 63,305,177
Los Angeles Unified School District 10,624,010,000 0.177% 18,804,498
Palos Verdes Unified School District 54,613,827 47.105% 25,725,843
City of Rancho Palos Verdes 0 100% 0
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $107,998,892
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 48,374
TOTAL NET OVERLAPPING TAN AND ASSESSMENT DEBT $107,950,518
OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations $2,317,550,679 0.840% $19,467,426
Los Angeles County Superintendent of Schools Certificates of Participation 5,182,434 0.840% 43,532
Los Angeles County Sanitation District No. 5 Authority 9,233,499 10.101% 932,676
Los Angeles County South Bay Cities Sanitation District Authority 1,573,880 4.068% 64,025
Los Angeles Unified School District Certificates of Participation 164,430,000 0.177% 291,041
TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $20,798,700
Less: Los Angeles Unified School District QZABs supported by investment fund 17,033
TOTAL NET OVERLAPPING GENERAL FUND DEBT $20,781,667
TOTAL DIRECT DEBT $0
TOTAL GROSS OVERLAPPING DEBT $128,797,592
TOTAL NET OVERLAPPING DEBT $128,732,185
GROSS COMBINED TOTAL DEBT $128,797,592 (2)
NET COMBINED TOTAL DEBT $128,732,185
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2019-20 Assessed Valuation:
Direct Debt 0.00%
Total Gross Direct and Overlapping Tax and Assessment Debt 0.80%
Total Net Direct and Overlapping Tax and Assessment Debt 0.80%
Gross Combined Total Debt 0.95%
Net Combined Total Debt 0.95%
Source
2019-20 Avenu Insights & Analytics
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by
determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
CITY OF RANCHO PALOS VERDES
City of Rancho Palos Verdes
Direct and Overlapping Governmental Activities Debt
Current Year
127
2011 2012 2013 2014 2015
Debt Limit 1,382,850$ 1,420,256$ 1,382,850$ 1,533,583$ 1,583,404$
Total Net Debt applicable to limit - - - - -
Legal Debt Margin 1,382,850$ 1,420,256$ 1,382,850$ 1,533,583$ 1,583,404$
Total Net Debt applicable to the limit as
a percentage of Debt Limit 0% 0% 0% 0% 0%
City of Rancho Palos Verdes
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
128
2016 2017 2018 2019 2020
Debt Limit 1,677,723$ 1,749,390$ 1,832,345$ 1,935,260$ 2,021,758$
Total Net Debt applicable to limit - - - - -
Legal Debt Margin 1,677,723$ 1,749,390$ 1,832,345$ 1,935,260$ 2,021,758$
Total Net Debt applicable to the limit as
a percentage of Debt Limit 0% 0% 0% 0% 0%
Total Taxable Value 13,478,385$
Debt Limit (15% of total taxable value) 2,021,758
Debt applicable to limit -
Legal Debt Margin 2,021,758$
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
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts expressed in thousands)
Fiscal Year
129
Per Capita **Public
Fiscal Personal Personal Median School
Year Population (1) Income (2) Income (2) Age Enrollment
2010-11 41,766 2,425,936,344 58,084 44.3 11,928
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
Source
MuniServices, LLC / Avenu Insights & Analytics
(1) Population Projections are provided by the California Department of Finance Projections.
**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
Demographic and Economic Statistics
Last Ten Fiscal Years
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.
(2) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.
130
County City City
Fiscal Unemployment Unemployment County Population
Year Rate (%) (3) Rate (%) (3) Population (1) (% of County)
2010-11 11.9% 4.1% 9,858,989 0.42%
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%
Source
(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
Demographic and Economic Statistics
Last Ten Fiscal Years
Avenu Insights & Analytics
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.
131
Taxpayer Business Type Taxpayer Business Type
7-Eleven Food Stores Food Markets 7-Eleven Food Stores Food Markets
Amsler Testing Office Equipment Admiral Risty Restaurant Restaurants
Audio Visual Services Group Office Equipment America's Tire Auto Parts/Repair
Avenue Italy Restaurants Asaka Japanese Cuisine Restaurants
Blue Crab Steak & Seafood Restaurant Restaurants Audio Visual Services Group Office Equipment
California Chemical Chemical Products Carl's Jr. Restaurants Restaurants
Centinela Feed & Pet Supplies Florist/Nursery Centinela Feed & Pet Supplies Miscellaneous Retail
El Pollo Loco Restaurants Chevron Service Stations Service Stations
G & M Service Stations Service Stations Coco's Restaurants Restaurants
Granvia Tomatillo Service Center Service Stations Daniel J Jeldum Miscellaneous Retail
Green Hills Memorial Park Miscellaneous Other Denny's Restaurant Restaurants
Highridge Car Wash Service Stations El Pollo Loco Restaurants
Los Verdes Country Club Miscellaneous Retail Good Night Mattress Furniture/Appliance
Marshall's Stores Apparel Stores Green Hills Memorial Park Miscellaneous Other
O'Reilly Auto Parts Auto Parts/Repair Hughes Markets Food Markets
PGA Tournament Corporation Restaurants IHOP Restaurants Restaurants
Ralph's Grocery Company Food Markets Kragen Auto Parts Auto Parts/Repair
Smart & Final Food Markets Los Verdes Country Club Restaurants
Southern California Discount Tire Auto Parts/Repair Marshall's Stores Apparel Stores
Terranea Resort Restaurants Mobil Service Stations Service Stations
The Admiral Risty Restaurants Rolling Hills Plastics Light Industry
Trader Joe's Food Markets Smart & Final Food Markets
Trump National Golf Club Miscellaneous Retail Terranea Resort Restaurants
Western Tobacco Miscellaneous Retail Trader Joe's Food Markets
Whose Investment Restaurants VH Property Miscellaneous Retail
Source
MuniServices, LLC / Avenu Insights & Analytics
City of Rancho Palos Verdes
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2019-20 2010-11
132
2019-20 2016-17
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Palos Verdes Peninsula Unified School District 1,071 1 6.41% 1,444 1 7.48%
Terranea Resort Hotel* 534 2 3.20% 1,226 2 6.35%
Belmont Corp Ltd (Belmont Village of Rancho) 168 3 1.01% 165 5 0.85%
Canterbury 169 4 1.01% 141 6 0.73%
Marymount College 139 5 0.83% 203 3 1.05%
Trump National Golf Club* 138 6 0.83% 186 4 0.96%
City of Rancho Palos Verdes* 122 7 0.73% 116 7 0.60%
Ralphs Store #720 117 8 0.70% 104 8 0.54%
Green Hills Memorial Park 72 9 0.43% 71 10 0.37%
American Golf Corp (Los Verdes Golf Course) 56 10 0.34% 72 9 0.37%
Subtotal of Principal Employers 2,586 15.49% 3,728 19.32%
Total City Employment (1) 16,700 19,300
Source
MuniServices, LLC / an Avenu Insights & Analytics Company
Results based on direct correspondence with city’s local businesses.
Trader Joe's Store's (#57 & #233) choose to no longer participate
(1) Total City Labor Force is provided by EDD Labor Force Data
City of Rancho Palos Verdes
Principal Employers
Current Year and Three Years Ago
*Count includes both full and part time employees
133
134
(THIS PAGE INTENTIONALLY LEFT BLANK)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
General Government 54 52 53 54 60 62 62 64 60 61
Part-Time Staff (1) 18 16.5 16 22 25 29 29 30 29 26
Total 72 68.5 69 76 85 91 91 94 89 87
Source
City Budget documents and Payroll records
(1) Full-Time Equivalent
City of Rancho Palos Verdes
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
135
2011 2012 2013 2014 2015
Function
Administration
Employee Resignations 5 8 7 14 10
Workers Compensation Claims 33313
Liability Claims 14 11 14 9 11
Budget Adjustments 17 11 24 15 15
Business Licenses Issued 1,891 1,294 1,868 1,997 2,134
Web Site Page Views (1) 2.8mil 3.0mil 3.1mil 3.3mil 426,772 *
Public Safety
Part I Crime Rates (per 10,000 population) 143 131 149 107 134
Public Works
Solid Waste Diversion Rates (2) 4.2lbs/person/day 4.2lbs/person/day 2.87lbs/person/day 2.84lbs/person/day 3.15lbs/person/day
Pavement Rating 85 85 84 82 82
Parks and Recreation
Park Events 580 582 765 631 639
Class Meetings at Parks 2,313 1,587 1,202 1,233 1,400
Docent Led Nature Hikes 105 104 121 109 103
Community Development
Building Permits Processed 1,432 1,221 1,403 1,492 1,558
Plan Checks 161 161 268 264 255
Municipal Code Violations Closed 371 321 312 392 358
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 percent of generation in 2003 through 2006, expressed in terms of per capital disposal.
City of Rancho Palos Verdes
Operating Indicators by Function
Last Ten Fiscal Years
136
2016 2017 2018 2019 2020
Function
Administration
Employee Resignations 6 6 27 23 30
Workers Compensation Claims 28211
Liability Claims 28 6 3 1
Budget Adjustments 18 48 80 98
Business Licenses Issued 2,012 1,939 1,902 1,971 1,776
Web Site Page Views (1) 403,704 536,568 445,633 450,206 657,040
Public Safety
Part I Crime Rates (per 10,000 population) 106 Not available at this time 113 99 109
Public Works
Solid Waste Diversion Rates (2) (4) 3.08lbs/person/day 2.46lbs/person/day 2.46lbs/person/day 5.6lbs/person/day 5.7lbs/person/day
Pavement Rating 84 84 84 89 89
Parks and Recreation
Park Events 810 829 1,281 1,122 807
Class Meetings at Parks 1,025 1,030 922 852 520
Docent Led Nature Hikes 94 108 113 104 37
Volunteer Events (3) 35 61 46 37
Volunteers (3) 764 1,806 1,095 974
Volunteer Hours (3) 2,486 5,919 3,569 2,724
Open Space Mgmt. Public Contacts (3) 23,101 33,306 29,973 29,786
Open Space Mgmt. Rules Enforced (3) 1,367 1,925 1,262 1,876
Open Space Mgmt. Maintenance / Projects (3) 782 1,219 546 -
Community Development
Building Permits Processed 1,758 1,665 1,985 2,186 1,933
Plan Checks 289 289 292 288 256
Municipal Code Violations Closed 505 432 457 338 275
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.
(3) Began tracking this indicator in 2017.
(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 percent of generation in 2003 through 2006, expressed in terms of per capital disposal.
City of Rancho Palos Verdes
Operating Indicators by Function
Last Ten Fiscal Years
137
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
Administration
Computer Workstations 92 88 93 98 114 138 140 144 144 155
Public Works
Street Miles 143 144 141 141 149 149 149 149 150.1 150.1
Traffic Signals 16 18 15 15 15 15 15 15 15 15
Parks and Recreation
Parks 15 15 15 16 16 16 16 17 17 17
Community Development
Vehicles Used for
Inspections 5554442244
Source
City Capital Asset Records
Public safety services are contracted with other agencies. The City does not own any public safety capital assets.
City of Rancho Palos Verdes
Capital Asset Statistics by Function
Last Ten Fiscal Years
138