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CC SR 20230620 03 - Budget Adoption PUBLIC HEARING Date: June 20, 2023 Subject: Consideration and possible action to conduct a public hearing on the Fiscal Year 2023- 2024 Budget for all City’s funds, the Five-Year Capital Improvement Program, and Improvement Authorities. Recommendation: (1) Conduct a public hearing on the FY 2023-24 Budget of all City’s funds, the Five-Year Capital Improvement Program, and Improvement Authorities; and (2) Adopt Resolution No. 2023-___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2023-24; and, (3) Adopt Resolution No. IA 2023-___, A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2023-2024. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Ferraro 3. Request for Staff Report: Mayor Ferraro 4. Staff Report & Recommendation: Brittany Ruiz, Interim Director of Finance (Consultant – Davis Farr) 5. Council Questions of Staff (factual and without bias): 6. Testimony from members of the public: The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Ferraro 8. Council Deliberation: The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter. 9. Council Action: The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional testimony; continue the matter to a later date for a decision. CITY COUNCIL MEETING DATE: 06/20/2023 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to adopt the Fiscal Year 2023-2024 Budget for all City’s funds, the Five-Year Capital Improvement Program, and Improvement Authorities. RECOMMENDED COUNCIL ACTION: (1) Conduct a public hearing on the FY 2023-24 Budget of all City’s funds, the Five- Year Capital Improvement Program, and Improvement Authorities; (2) Adopt Resolution No. 2023-___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2023-24; and, (3) Adopt Resolution No. IA 2023-___, A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2023-2024. FISCAL IMPACT: The Citywide FY 2023-24 Budget includes total revenues of about $52.8 million and total expenditures of almost $61 million, including transfers and Improvement Authorities. The General Fund includes revenues of almost $38.8 million and expenditures of $38.1 million, including transfers. The Capital Improvement Program includes revenues and transfers of $4.9 million and expenditures of $7.7 million. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Vina Ramos, Deputy Director of Finance Jason Loya, Senior Administrative Analyst REVIEWED BY: Brittany Ruiz, Interim Director of Finance (Davis Farr) APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2023-___ (page A-1) B. Resolution No. IA 2023-___ (page B-1) 1 C. FY 2023-24 Budget Summary including Improvement Authorities (page C- 1) D. FY 2023-24 CIP Budget and 5-year CIP (page D-1) E. FY 2023-24 One-time vs. recurring revenues and expenditures (E-1) BACKGROUND: After conducting three budget workshops in March and April for the FY 2023-24 budget cycle and reviewing the Preliminary Budget in May (shown below), the City Council is now being asked to conduct a public hearing to consider the adoption of the FY 2023-24 Budget. The required Public Notice was published in the Palos Verdes Peninsula News on June 1 and June 8, 2023. Budget Process The budget report presented at tonight’s public hearing is a comprehensive report outlining the forthcoming year’s budget. It consolidates the budget assumptions that were approved by the City Council in the three workshops and the Preliminary Budget . This report presents an analysis that combines a comparison between the draft budget, estimated year-end, and prior year’s budget. Overall, the information presented tonight for the City Council’s review and adoption are as follows: • FY 2022-23 Year-End Estimates (General Fund) • FY 2023-24 Draft Budget for (General Fund) • FY 2023-24 Fund Balance Summary (General Fund) • FY 2023-24 Recurring versus One-time Revenues and Expenditures (General Fund) • FY 2023-24 Draft Budget (Capital Improvement Program, Other Funds) • FY 2023-24 Fund Balance Summary (Capital Improvement Program, Other Funds) Prior reports related to the budget workshops are referenced below and can be found on the City’s website at https://ca-ranchopalosverdes2.civicplus.com/772/City-Meeting- Video-and-Agendas : • March 15, 2023 – City Council Goal Setting Workshop 2 • April 6, 2023 - General Fund Budget Workshop • April 12, 2023 – CIP Budget Workshop • May 16, 2023 – Preliminary Budget Meeting DISCUSSION: FY 2022-23 General Fund Year-End Estimates As presented in the Preliminary Budget on May 16, 2023, the General Fund revenues are estimated to end at approximately $38 million, and expenditures at almost $37.1 million, net of operating transfers. After including the $889,500 transfers to Capital Infrastructure Program (CIP) Fund for the Ladera Linda loan payment and $400,000 to the Employee Pension Service Fund (EPSF) for the pension payments using prior year’s surplus, the General Fund is estimated to end the year with a fund balance of $30.4 million. As shown in Table 1 below after applying the City Council’s 50% Reserve Policy, the General Fund’s Unrestricted Fund Balance is estimated at $15.1 million, an increase of almost $3.1 million or 26% over the FY 2022-23 Revised Budget. Table 1 –General Fund Balance – Year-end Estimates FY 2023-24 General Fund Draft Budget Overview On May 16, 2023, Staff presented the Preliminary Budget at a regularly scheduled City Council meeting. At this meeting, Staff reported the budget changes based on direction received at the three workshops that were held in March and April. Subsequently, the results from the budget process were combined to develop the draft FY 2023-24 Budget. General Fund FY 2022-23 Revised Budget FY 2022-23 Year-End Estimates (Mid-Year) FY 2022-23 Year-End Estimates (3rd Qtr.) Beginning Fund Balance - 7/1/2022 30,391,900 30,391,900 30,729,000 337,100 1% Add: Revenues 35,737,000 37,266,500 37,678,800 1,941,800 5% Add: Transfers-In 300,000 300,000 300,000 - 0% Total Revenues 36,037,000 37,566,500 37,978,800 1,941,800 5% Less: Expenditures (32,476,674) (30,285,900) (30,585,900) (1,890,774)-6% Less: Transfers to TOT (3,870,200) (4,686,000) (5,040,100) 1,169,900 30% Less: Transfers to CIP - Additional (1,364,200) (1,364,200) (1,364,200) - 0% Less: Other Transfers-Out (65,000) (65,000) (65,000) - 0% Less: Additional Transfers - CIP Ladera (PY Surplus) (889,500) (889,500) (889,500) - 0% Less: Transfers to Pension (PY Surplus) (400,000) (400,000) (400,000) - 0% Total Expenditures (39,065,574) (37,690,600) (38,344,700) (720,874) -2% Estimated Ending Fund Balance - 6/30/2023 27,363,326 30,267,800 30,363,100 2,999,774 11.0% Restricted Fund Balance: 50% Reserve Policy (15,363,800) (15,142,950) (15,292,950) (70,850)0% Unrestricted Fund Balance - 06/30/23 11,999,526 15,124,850 15,070,150 3,070,624 25.6% Increase/( Decrease) from Revised Budget 3 Overall, based on the assumptions that incorporate the City Council’s directives and new additional information, Staff estimates that the FY 2023-24 Operating Revenues will reach just over $38.5 million (before transfers-in) and Operating Expenditures will amount to roughly $33.5 million, before transfers-out and excluding one-time expenditures. As illustrated in Table 2 below, Staff estimates a structural surplus of $5 million, before transfers and one-time expenditures. After applying the transfers and one-time expenditures, the General Fund is estimated to have a n unallocated balance of $715,300 on June 30, 2024. Table 2: General Fund Revenues and Expenditures Summary A detailed explanation of the budget assumptions for the FY 2023-24 Budget is provided below. FY 2023-24 General Fund Revenues: General Fund revenues, excluding transfers, are expected to exceed the FY 2022-23 year-end estimates in the third quarter by a total of $846,000, or 2.2%. The following section provides a brief overview of major General Fund revenues sources and a comparison of year-end estimates to the FY 2023-24 Draft Budget. Property Tax Property Tax represents the largest and most stable revenue source in the General Fund. Given its historically stable growth rates, the FY 2023-24 Draft Budget allocates roughly $17.1 million in property tax revenues, an increase of about $773,700, or 5%, over FY 2022-23 year-end estimates. Revenue growth is associated with assessed property values which typically increase each year at a rate no greater than 2%. Additional growth can come from home sales which trigger property reassessments and Proposition 8 value recaptures. The year-end and budgeted totals also consider a declining trend in sales volume and were adjusted accordingly as presented at the Preliminary Budget meeting. There are three primary factors that determine the annual change in prope rty tax revenue received by the City: General Fund Recurring One-Time Total Operating Revenues 38,489,800 35,000 38,524,800 Less: Operating Expenditures 32,710,500 803,000 33,513,500 Structural Surplus/(Deficit)5,779,300 (768,000) 5,011,300 Transfers-In - 270,000 270,000 Less: Transfers-Out 4,566,000 - 4,566,000 Unallocated Balance 1,213,300 (498,000) 715,300 4 • Inflation (Based on the California Consumer Price Index – CCPI) All properties not reduced by Proposition 8 are subject to a maximum CCPI increase of 2% annually. For FY 2023-24, the County Assessor will be applying a 2% increase to these properties resulting in a $302 million increase in real property value within the City. • Transfer of Ownership (Sale of property to a new owner) For properties that have sold between January and December 2022, the increase in value has been factored into the property tax revenue calculation and provided an additional $445 million in property value. • Proposition 8 Recapture (Additional increase in assessed property value) Proposition 8 allows for properties that have experienced a decrease in value due to a downturn in the housing market to have the value used in the calculation of their property tax be based on the current market price. As home values recover, properties that received this relief can experience an ann ual increase in assessed value at a rate greater than the 2% CPI limit mentioned above. This recapture in value accounted for an additional $11 million in property value. The three factors mentioned above, plus other various indicators used in the calculation of property tax, combined to make an expected 5% increase in overall property value. This increase, plus property tax transfer revenue generated when a property is sold, property tax revenue received in lieu of vehicle license fees, and other small re venue sources, were used to determine the final budgeted amounts. Property Taxes FY 22-23 Revised Budget: $16,406,800 FY 22-23 Year-end Estimate: $16,375,800 FY 23-24 Draft Budget: $17,149,500 FY 23-24 Net Change to YE Estimate: +$773,700 (5%) Transient Occupancy Tax (TOT) TOT is regarded as the second largest revenue source in the General Fund. TOT revenue from Terranea accounts for $6.7 million, or 97%, of the $6.9 million included in FY 2023- 24 Draft Budget. The remaining 3% is comprised of miscellaneous hotel tax revenues. An increase in demand for leisure and business travel prompted Terranea to raise hotel rates in 2023. As a result, current year revenues have outperformed the prior year by roughly 21% through March 2023. Revenue growth is also attributed to the ongoing rebound within this industry. However, the latest indicators also suggest that growth may extend further into the year-end and slowly decelerate to moderate levels in FY 2023-24. To account for these changes and retain a conservative outlook, FY 2023 -24 revenues are projected to remain flat in comparison to the FY 2022-23 year-end estimates. 5 Transient Occupancy Tax FY 22-23 Revised Budget: $5,750,100 FY 22-23 Year-end Estimate: $6,927,900 FY 23-24 Draft Budget: $6,927,900 FY 23-24 Net Change to YE Estimate: No change Sales and Use Tax Sales Tax revenues are allocated at just under $2.9 million in the FY 2023-24 Draft Budget. Despite the year-over-year growth observed, the latest statewide forecast indicates that the overall growth rate will decrease from 4% in the current fiscal year to around 0.4% in the upcoming fiscal year. Considering a relatively flat growth rate, sales tax revenues are likely to exceed FY 2022-23 year-end estimates by approximately $11,400, or 0.4%. This forecast reflects the likelihood of a slowing economy and changing consumer sentiment related to discretionary spending. Sales and Use Tax FY 22-23 Revised Budget: $2,687,200 FY 22-23 Year-end Estimate: $2,844,400 FY 23-24 Draft Budget: $2,855,800 FY 23-24 Net Change to YE Estimate: +$11,400 (0.4%) Permits and Fees This revenue source is comprised of various permit and fee types such as building and safety permits, plan check permits, planning and zoning permits, animal licenses, and other miscellaneous permits. The Community Development Department brings in around 95% of all license and permit revenues which can vary year-to-year due to the variety of sources. The FY 2023-24 Draft Budget totals nearly $3.2 million in revenues. Compared to FY 2022-23 year-end estimates, the draft budget reflects a decrease of approximately $253,700, or -7%, to adjust for a decline in backlogged permit activity post -pandemic. Additionally, on May 2, 2023, the City Council opted to forego a Consumer Price Index (CPI) adjusted increase and approved the City’s Master Fee Schedule as recommended. Based on this action, no adjustments were made to the FY 2023-24 draft revenues. Permits and Fees FY 22-23 Revised Budget: $3,077,600 FY 22-23 Year-end Estimate: $3,425,200 FY 23-24 Draft Budget: $3,171,500 6 FY 23-24 Net Change to YE Estimate: ($253,700) (-7%) Franchise Tax The City receives payments from franchisees for the use of municipal rights-of-way from vendors such as EDCO, Cox, and Southern California Gas Company. Staff analyzes historical data and reviews industry projections as the basis for annual assumptions. To that end, franchise tax revenue in the FY 2023-24 Draft Budget is slated to increase slightly above FY 2022-23 year-end estimates by $50,000, 2%. Compared to the FY 2022-23 revised budget and year-end estimates, draft revenues are forecasted to grow by $50,000. Franchise Taxes FY 22-23 Revised Budget: $2,150,000 FY 22-23 Year-end Estimate: $2,150,000 FY 23-24 Draft Budget: $2,200,000 FY 23-24 Net Change to YE Estimate: +$50,000 (2%) Utility User Tax (UUT) UUT revenues total nearly $2.5 million in the FY 2023-24 Draft Budget and account for 6% of the total General Fund revenues. Compared to FY 2022-23 year-end estimates, revenues are projected to decrease by around $72,800, or -3%. Utility rates for electricity, natural gas, and water have fluctuated in each category with prices remaining elevated compared to prior years. However, the surge in natural gas pricing peaked during the first quarter of 2023 and lead to higher than anticipated revenues in FY 2022-23. Changing prices and slowing inflation led staff to adjust next year’s budget accordingly. Additionally, UUT has been identified as a necessary revenue source that supports the City’s operating needs. At the Budget Workshop in April, the City Council appr oved continuing the 3% rate for UUT. There were no material changes based on this action. UUT FY 22-23 Revised Budget: $2,201,200 FY 22-23 Year-end Estimate: $2,555,000 FY 23-24 Draft Budget: $2,482,200 FY 23-24 Net Change to YE Estimate: ($72,800) (-3%) Other Taxes and Miscellaneous Revenues Other Revenue consists of over 20 unique revenue sources, including business license tax, golf tax, interest earnings, rental/lease, parking lot fees, and one -time revenues/donations. Total revenues can vary widely from year to year due to the variety 7 of revenue sources included in this category. Compared to FY 2022-23 year-end estimates, the FY 2023-24 Draft Budget is anticipated to increase by $337,400, or 10%, to a total of $3.7 million. Inflation has led to higher prices, and, therefore, a higher taxable base for revenue sources included within this category. According to the Rancho Palos Verdes Municipal Code Section 3.40.140, a legislative review of the Golf Tax is required every four years and must be completed prior to adopting the budget prepared for the corresponding next fiscal year. The Golf Tax ordinance directs the City Council to determine, based on the needs of the City, if any modification to the tax rate is necessary or if the tax should be repealed. On April 6, 2023, the City Council upheld the Golf Tax rate of 10% for FY 2023 -24. Accordingly, the next review will be in 2027 during the FY 2027-28 budget process. Other Taxes and Miscellaneous Revenues FY 22-23 Revised Budget: $3,464,100 FY 22-23 Year-end Estimate: $3,400,500 FY 23-24 Draft Budget: $3,737,900 FY 23-24 Net Change to YE Estimate: +$337,400 (10%) In total, FY 2023-24 General Fund revenues, including transfers, are projected to reach $38.8 million, an increase of $0.8 million, or 2.1%, from FY 2022-23 year-end estimates of $38 million. Table 3: FY 2023-24 Draft General Fund Revenues As illustrated in Charts 1 and 2 on the following page, property tax revenue totals far exceed all other major General Fund revenues sources in comparison. In the FY 2023 - 24 Draft Budget, property tax represents 45% of the total revenues and has demonstrated stable and recurring growth year-over-year. TOT revenue comes in as the second largest FY 2021-22 Revenue Source Actuals Revised Budget YE Estimates at 3rd Qtr Draft Budget Property Tax 15,741,842$ 16,406,800$ 16,375,800$ 17,149,500$ 773,700$ 5% Transient Occupancy Tax 6,170,132 5,750,100 6,927,900 6,927,900 -$ 0% Sales Tax 2,782,443 2,687,200 2,844,400 2,855,800 11,400$ 0% Permits & Fees 3,338,328 3,077,600 3,425,200 3,171,500 (253,700)$ -7% Franchise Tax 2,278,003 2,150,000 2,150,000 2,200,000 50,000$ 2% Utility Users Tax 2,525,992 2,201,200 2,555,000 2,482,200 (72,800)$ -3% Other Taxes & Misc. Revenues 3,074,704 3,464,100 3,400,500 3,737,900 337,400$ 10% Subtotal 35,911,444 35,737,000 37,678,800 38,524,800 846,000 2% Transfers In 310,000 300,000 300,000 270,000 (30,000) -10% Total 36,221,444$ 36,037,000$ 37,978,800$ 38,794,800$ 816,000$ 2% FY 2022-23 Variance to Year-End Estimates FY 2023-24 8 revenue source in the General Fund and accounts for 18% of total revenues. Combined, these two revenue sources account for 63% of the General Fund, not including transfers. Chart 1: FY 2023-24 Draft General Fund Revenues (without transfers) Chart 2 – FY 2023-24 Draft Budget - Revenue Allocation 9 FY 2023-24 General Fund Expenditures Overall, the General Fund expenditures are estimated at almost $38.1 million, including transfers out. This amount is an increase of almost $3 million or 10% over the FY 202 2- 23 year-end estimates, before transfers. After including transfers, the change is a slight decrease of $0.3 million or 1%. Table 4 below illustrates the comparison of the budget for FY 2022-23 Year-End Estimates and FY 2023-24 Draft Expenditure Budget. Table 4 – FY 2023-24 Draft Expenditure Budget A detailed explanation of the budget assumptions for the FY 2023-24 Budget for Expenditures is provided below. Personnel Costs Personnel costs account for the salaries and benefits for City employees, including full - time, part-time, and stipends for the City Council and Planning Commissioners. Overall, the personnel budget is estimated at $13.6 million or 41% of the budget, before transfers out. As highlighted below, this is an increase of $2.7 million or 24% over FY 2022-23 year- end estimates. FY 2023-24 Department FY 2022-23 Year-End Estimates Preliminary Budget Draft Budget Changes from Year-End Estimates Salaries 7,876,100 9,820,000 9,820,000 1,943,900 25% Benefits 3,033,100 3,755,300 3,755,300 722,200 24% Sheriff's Contract 7,140,000 7,872,000 7,872,000 732,000 10% Legal Services 900,000 940,000 940,000 40,000 4% Supplies 583,700 693,400 693,400 109,700 19% Professional & Technical 3,775,000 4,002,700 4,002,700 227,700 6% Repairs & Maintenance 3,061,900 3,635,200 3,635,200 573,300 19% Training & Conference 288,000 414,800 414,800 126,800 44% Capital Outlay 1,389,000 26,000 26,000 -1,363,000 -98% Equipment Replacement Charges 290,900 246,900 246,900 -44,000 -15% General Liabilities Insurance 703,100 675,000 675,000 -28,100 -4% Utilities 926,400 993,400 993,400 67,000 7% Misc. Expense 618,700 438,800 438,800 -179,900 -29% SUBTOTAL 30,585,900 33,513,500 33,513,500 2,927,600 10% Transfers-Out 7,758,800 4,566,000 4,566,000 -3,192,800 -41% Grand Total $38,344,700 $38,079,500 $38,079,500 ($265,200)-1% *FY 23-24 amounts exclude approved transfers-out of $889,500 for CIP and $291,300 for Pension Employee Service Fund as these are funded from prior year’s surplus and excess reserves. 10 Personnel Costs FY 22-23 Revised Budget: $12,804,82 FY 22-23 Year-End Estimate: $10,909,200 FY 23-24 Draft Budget: $13,575,300 Net Change over YE: +$2.7 million or +24% Chart 3 below is a summary of the major budget assumptions that account for the almost $13.6 million in salaries for each department: Chart 3: FY 2023-24 Personnel Costs by Department Salaries In September 2021, the City Council awarded a contract services agreement with Public Sector Personnel Consultants (PSPC) to conduct a comprehensive classification and compensation study and organizational review for all full-time and part-time employees. Currently, the fiscal impact from the study remains unidentified. Staff expects to complete this process and report the results back to the City Council in the first quarter of FY 2023- 24. Additionally, on June 21, 2022, the City Council adopted Resolution No. 2022 -42 Tentative Agreement (TA) for a Successor Memorandum of Understanding (MOU) between the City of Rancho Palos Verdes and the Rancho of Palos Verdes Employees Association (RPVEA) for the period of July 1, 2022 through June 30, 2025. Hence, the draft budget includes personnel assumptions based on the TA. Moreover, the personnel assumptions include salaries for the City Manager, management positions, confidential positions, and part-time positions. 11 Based on the current information, the estimated budget for salaries in FY 2023 -24 is approximately $9.8 million, a projected increase of approximately $1.9 million or 25% over the FY 2022-23 year-end estimates. The following highlights the major changes between the FY 2022 -23 and FY 2023-24 budget. • Includes budgeting all existing and approved competitive, confide ntial, and management positions at 100% except for the positions listed below. The funding needs (shown as percentages below) are aligned with the tentative recruitment and realistic hiring schedules as recommended by the Departments. • Building Inspector II - funded at 75% • Deputy City Clerk – funded at 75% • Associate Engineer (2 positions) - funded at 75% • Assistant Engineer - funded at 50% • $257,500 accounts for COLA and merit increase for all full-time employees, including competitive positions, confidential positions, part-time positions, and management positions. Per the City’s TA with RPVEA, COLA is estimated at 3%, which is the maximum percentage per the TA and is measured by CPI-U reported by the U.S. Bureau of Labor Statistics for the Los Angeles -Long Beach-Anaheim, California metropolitan area covering the prior twelve-month period March to March each year. The CPI-U for March is 3.7%. Moreover, the budget assumption for merit increase is estimated at an average of 4.5%. The merit increase is based on an updated employee’s performance evaluation ranging from 1% to 6% per the City’s MOU with RPVEA. • $87,000 is a placeholder for merit increase for all part-time employees. The City is currently in the process of the collective bargaining process with the American Federation of State, County, and Municipal Employees (AFSCME). Staff will continue to provide an update on the results from the bargaining process once the information and final financial impact becomes available. • Human Resources: $45,000 for a temporary part-time Staff Assistant I. The temporary position will continue to provide administrative support for Human Resources including processing of department mail and responding to emails and phone calls; scheduling and coordinating logistics of training; maintaining employee personnel files; assisting in the onboarding of new employees and transitioning to their new position; overseeing employee events and annual employee recognition; and assisting with initial contact regarding leave administration and benefit administration. An assessment will be made in the year to come, after a vacant position in the Human Resources Division is filled on the need to convert this position to a permanent classification. 12 • Finance Department: One full-time Account Clerk position. During the FY 2022-23 budget process, the City Council approved Staff’s recommendation of a temporary solution by increasing the number of hours for the Staff Assistant I. As reported at that time, the Finance Department would come back in this year’s budget process after reassessing the Department’s needs for a permanent solution. In lieu of two Staff Assistant I part-time positions, the Finance Department proposed a new full- time position during the budget workshops to improve continuity for the Department and help manage the increasing level of support needed from citywide departments and customers. The increased levels of support include centralized cashiering, purchasing, and general accounting. The full -time position would also help the Department sustain adequate Staff coverage when needed. The current salary range for the Account Clerk is $54,557 - $70,832. Staff estimates an increase of approximately $14,900 in salaries from the current part-time Staff Assistant I position to Account Clerk. However, the increase is offset by not funding the two part-time positions of Staff Assistant. • Recreation and Parks Department: $81,600 for adding a full-time Administrative Analyst I and a part-time Staff Assistant II. The Administrative Analyst I position will be supporting the Open Space Division (OSM) efforts for projects and programs such as Management Agreement between the City and the Palos Verdes Peninsula Land Conservancy, Trails Network Plan, CityWorks Maintenance Program, Preserve Project Management, and providing analytical support for City Council Goals. The other position is a part-time Staff Assistant II, which will provide administrative support to the Department. Additionally, the position will provide support to other departments and citywide efforts related to events and public response efforts. The current salary range for Administrative Analyst I is $70,605-$91,692, and the range for the hourly rate of Staff Assistant II is $26.16-$33.97. Staff estimates an increase of approximately $117,900 for the two positions. The net increase is reduced to $81,600 after removing the budget for two vacant Recreation Specialist positions for OSM and Recreation and Parks Administration. • Non-Department: $25,000 for the Recruitment Incentive Program. Beginning in FY 2021-22, the City Council approved the allocation of $60,000 f or the Recruitment Incentive Program which is currently underway. The program is intended to incentivize and secure highly qualified employees for difficult -to-recruit positions. Staff requests $25,000 for FY 2023-24 based on projected recruitments. • City Administration: On May 2, 2023, the City Council voted to implement a two- year pilot program (Public Safety Services Division) that utilizes in-house City staff to enhance public safety services provided by the Sheriff’s Department and appropriated additional funding in FY 2023-24 for this program. As the result, the net increase in personnel for this program is $209,200, as follo ws: o Recreation and Parks Department personnel decreased by $111,400. This is to move the Parking Enforcement program to the City Administration. 13 o City Administration personnel increased by $320,600 for this new program. This amount includes up to two part-time Community and Safety Service Coordinators and four part-time Public Safety Liaisons. The pilot program is intended to roll out at the beginning of the new year, as the next six months will be used for setting up the new Division within the City Manager’s Office and beginning the recruitment process for a Public Safety Manager, as well as Public Safety Liaisons. • In the past few years, several vacant positions have been frozen and underfilled and are excluded from the current budget. While most positions have now been restored, the following positions continue to remain frozen in the budget assumptions for FY 2023-24: • Executive Assistant in the City Manager’s Office • GIS Coordinator in the Community Development Department • Accounting Supervisor in the Finance Department (underfilled) Benefits The projected Benefits for FY 2023-24 Draft Budget is approximately $3.8 million, with an increase of approximately $722,200 or 24% over the FY 2022-23 year-end estimates. The major highlights for the budget assumptions to develop benefits of $3.8 million for FY 2023-24 are as follow: • $2.0 million for health, dental, vision, worker’s compensation, Medicare, retirement health savings, and other ancillary benefits such as group term life insurance. Compared to the prior year’s revised budget, these line items increased by $149,000 or 8%. The increases are mainly from the estimated cost increases for health benefits, contribution to Health Savings Account (HSA) aligned with the same amounts established by the Internal Revenue Service (IRS) and adding benefits for filled positions that were previously vacant. • $889,200 for the CalPERS normal rate payment, an increase of $198,000 or 36% over the FY 2022-23 revised budget. The payment is the City’s normal cost for current employees that are in Tier 1, Tier 2, and Tier 3. Most of the increase is from Tier 1 based on the required normal rate and Tier 2 by adding the budget for filled positions that were previously vacant. The payments summary for each Tier are: • Tier 1: Rate increased from 12.21% to 14.02% for $331,200 or 37% • Tier 2: Rate increased from 8.63% to 10.03% for $313,600 or 35% • Tier 3: Rate increased from 7.47% to 7.68% for $244,400 or 27% • $1.0 million for the CalPERS Unfunded Accrued Liability (UAL) payment for Tier 1. Compared to last year’s revised budget, this is a decrease of $106,000 or -9%. The 14 payment is the City’s unfunded liability, inclusive of current employees and retired employees that are in Tier 1, Tier 2, and Tier 3, and are as follows: Tier 1: Rate increased from 9.94% to 12.09% for $1.1 million or 100% Tier 2: Rate decreased from 0.61% to 0% Tier 3: Rate decreased from 0.31% to 0% • In accordance with the City’s Pension Guideline adopted in FY 2020-21, the Employee Pension Plan Service Fund must relieve the General Fund of UAL payments more than $900,000. As such, relieving the FY 2023-24 General Fund of $135,700 to offset the increases in the benefits category. Non-Personnel Costs The non-personnel category includes the Los Angeles County Sheriff contract, legal services, professional and technical services, repairs and maintenance, supplies, training and conferences, utilities, and miscellaneous/other expenses. This category represents $20 million, or 60% of the draft budget, before transfers out. As illustrated below, the FY 2023-24 draft budget includes an increase of $373,600 or 2% over FY 2022-23 revised budget. Non-Personnel Costs FY 22-23 Revised Budget: $19,671,854 FY 22-23 Year-end Estimate: $19,676,700 FY 23-24 Draft Budget: $19,938,200 Net Change Over YE: +$261,500 or +1% Below are major highlights of the non-personnel budget of $19.9 million. The amounts listed and the percentage to budget per category are based on the draft budget, before transfers-out. Public Safety Los Angeles Sheriff Department Contract: • Accounts for $7,872,000 or 23% of the draft budget. • Includes a contract increase of $616,000 or 9% over FY 2022-23 contract. • The increase includes estimated current Cost of Living Adjustment (COLA) and COLAs from prior years. Special Programs • Special Programs for $143,000, including School Resource Officers for outreach and education at Peninsula schools, Neighborhood Public Safety Grant Program providing reimbursements to neighborhoods for the installation of safety - enhancing tools and technologies, administration for the parking citations program, and Everbridge emergency notification software. 15 • Supplemental Program for $70,000 for funding for additional miscellaneous supplemental (overtime) patrol around the City by the Sheriff’s Department as needed or as requested, including crime suppres sion, specialized traffic patrols, and fireworks suppression. Legal Services • Accounts for $940,000 or 3% of the draft budget. • Includes general legal services, code enforcement, litigation, labor negotiation, and legal services related to public records act requests. Professional and Technical Services • Accounts for almost $4 million or 12% of the draft budget. • Majority of this category includes managed information technology s ervices, engineering, environmental planning services, code enforcement related services, flagging/crossing guard services, recreation program instructors, special events, inspections, the peafowl program, other legal services, audit services, and other miscellaneous consulting services. • The draft budget is higher than the current budget by approximately $814,100. After reducing the one-time costs of $563,200 that are no longer needed, the net increase for this account from the prior year’s budget is appro ximately $251,000 or 6.7%. Summarized below are the increases based on City’s operational needs, emergency/contingency budget, and projected one-time costs. i. $271,400 (Public Works) added for the storm water quality monitoring programs. ii. $110,000 (Non-Department) added for emergency services (as needed): • $100,000 for a contingency budget for emergency events requiring unanticipated services. • $10,000 for a contingency budget for Point Vicente Interpretive Center (PVIC) Exhibit for unforeseen services. iii. $409,000 for one-time costs: • $6,000 (City Administration) for the development of a Peninsula-wide emergency evacuation website currently referred to as Zonehaven (Know Your Zone). • $216,000 (Community Development) for professional services associated with the 6th Cycle Housing Element Update which includes program analysis, research, and implementation. This also includes ongoing coordination and public outreach such as Incremental Infill Housing Program, Accessory Dwelling Unit (ADU) Programs, Fair 16 Housing, and Zoning Amendment to remove Governmental constraints. • $20,000 (Community Development) for the Residential Rehabilitation Program-Housing Element Program No. 19 in support of home conservation. The program is funded by the General Fund and CDBG Fund. • $40,000 (Community Development) for the ADU Incentive Program - Housing Element Program No. 6 in support of ADU development. The program is funded by the General Fund and CDBG Fund. • $50,000 (Non-Department) for the Drone Show as part of the City’s 50th anniversary celebration at the Fourth of July celebration. • $10,000 (Recreation and Parks) for the Civic Works software integration to support public service requests for Open Space Management. iv. $23,700 is from increases in professional and technical contracts based on CPI, such as auditing services, playground inspection services, and lobbying consulting services. Repairs and Maintenance • Accounts for $3.6 million or 11% of the draft budget. • Most of this category includes licensing and support for technology services, tree trimming, landscape and median maintenance, fuel modification, traffic control, custodial, graffiti abatement, and building and park maintenance. • The draft budget increased approximately by $615,200 or 19% from the prior year’s revised budget. After deducting the one-time costs of $259,500 that are no longer needed, the net increase for this account from the prior year’s budget is approximately $355,800 or 11%. Below are the majority of line items that increased from the prior year. o $70,000 (Non-Department) added for emergency services (as needed for the coming fiscal year): • $20,000 vehicle collision repairs for the Open Space Management. • $50,0000 unexpected building repairs. o $208,000 for one-time costs: • $20,000 (Public Works) for manhole repairs at PVIC. 17 • $188,000 (Public Works) for general maintenance and repairs at city hall. The scope of the project includes such repairs as painting and new carpeting intended to sustain operations in the existing building for at least 5 more years. Moreover, improvements may be used by future tenants if a new City Hall is constructed. Currently, the amount does not include the necessary abatement costs. For a more accurate amount, Staff will present a staff report to the City Council for the final amount and, if needed, a request for additional appropriation when the contract is ready for approval. • In addition to the items above, many of the items included in the draft budget in this category are the following: o $455,000 fuel modification (hand trimming) o $325, 000 fuel modification (fire grazers - goats) o $635,000 landscape maintenance at city parks o $315,000 street landscaping and tree maintenance o $60,0000 trail maintenance services including the recently acquired Lower Filiorum Reserve and the temporary closed trails at Sacred Cove. o $465,400 information technology maintenance services o $310,000 on-going building maintenance such as custodial services, building security, park and gate security, heating, ventilation, air conditioning, pest control, and electrical. Utilities • Accounts for almost $1.0 million or 3% of the draft budget. • Includes water, electricity, and gas. • The draft budget is higher than the current budget by approximately $322,000 or 48%. • The increase is a combination of higher water rates and higher water usage compared to the prior year. The increase in usage is mainly due to improving the appearance of City’s parks, medians, and City roadways in response to public requests. Supplies, Training, and Conference, Miscellaneous Expense • The remaining non-personnel costs are supplies, training and conference, and miscellaneous expenses, which represent $2.6 million or 8% of the draft budget. The main decrease is from one-time costs in FY 2022-23. • The one-time costs included in the draft budget are the following: 18 o $50,000 (Public Works) for new trash receptacles for parks, trails, and open space, and streets. • Some of the major items under the miscellaneous category are: o $800,00 for the City’s insurance premium payments for general liabilities, property dames, and pollution. o $246,900 for equipment replacement charges. These are charges to the departments based on an equipment replacement schedule. The accumulation of the charges is recorded in the City’s internal service fund for future use. o $190,000 for the property assessments of City-owned parcels paid to the Klondike Canyon Landslide Abatement District and Abalone Cove Landslide Abatement District. o $150,000 for the City’s 50th Anniversary celebration events such as Fourth of July celebration, Sister City Cultural Event, and 50th anniversary celebration dinner banquet at Terranea. • A decrease of $125,000 was approved on May 16, 2023. This was from the new information received in April for the premium liability insurance payment. The total budget of $675,000 is allocated for the premium liability insurance payment. • An increase of $70,400 was added on May 16, 2023, for services related to the Public Safety Services Division pilot program. This amount includes trailer rental for office space, vehicle, uniform, and supplies. Capital Outlay • Accounts for almost $26,000 or less than 1% of the draft budget. • This account decreased by almost $1.1 million from the prior year’s budget, mainly from the one-time cost that is no longer needed FY 2023-24. The one-time cost of almost $1 million in FY 2022-23 is the purchase of certain real properties commonly known as the Lower Filiorum and Plumtree properties. Transfers Out Transfers Out from General Fund are interfund transfers such as transfers to the CIP, Employee Pension Service Plan Fund, and other funds such as the City’s Improvement Authority for Portuguese Bend and Sub-region One, as described in detail below. • Transfer Out to CIP The transfer out of General Fund revenue to the CIP Fund has been a factor of the City’s public safety contract with the Los Angeles County Sheriff’s Department since FY 2017- 18. In FY 2017-18, with the City Council’s goal to continue enhancing public safety services for the residents of Rancho Palos Verdes, the City Council approved reducing 19 the TOT transfers to the CIP Fund by the cumulative annual increases in the public safety contract. As a result, the cost increases of the public safety contract reduced the transfers to the CIP. For FY 2023-24, Staff estimates to receive approximately $6.7 million in TOT revenue from the Terranea Resort. Based on this estimate, the TOT transfer to the CIP Fund is approximately $4.4 million or 12% of the draft budget. This amount is the net amount after applying the cumulative annual increases (since FY 2017-18) of almost $2.3 million in the public safety contract as illustrated in Table 5 on the next page. Based on the current information received from the Los Angeles Sheriff’s Department, the estimated increase in FY 2023-24 is $616,000 or 9% over FY 2022-23 contract. Table 5: FY 2023-24 Transfers Out to CIP Additionally, in accordance with the City Council Reserve Policy No. 41, the City may transfer to the CIP Fund all or a percentage of the prior year’s unrestricted excess reserve in General Fund (FY 2021-22) in the amount of $15.7 million. As such, 1 the same as FY 2022-23, Staff recommends transferring $889,500 or 6% of the prior year’s estimated unrestricted excess reserve of almost $14.7 million to the CIP fund. This amount is equivalent to the anticipated annual interest expense payment for the Ladera Community Park Project. • Transfers Out to Employee Pension Service Fund On February 2, 2021, the City Council approved the CalPERS Pension Plan Guidelines which provides a financial plan to address the City’s outstanding pension liability and CalPERS’ continuous change in valuation methodology. Based on the City Council’s discretion, the goal is to transfer funds to the Employee Pension Service Fund of at least 10% but no more than 25% of the annual General Fund surplus (revenues minus expenditures, including transfers). As a result, the accumulated funds in the Employee FY 2023-24 TOT Estimates (Terranea)6,700,000$ Less Public Safety Increases:(2,278,900) FY 2017-2018: ($893,000) FY 2018-2019: ($200,500) FY 2019-2020: ($260,800) FY 2020-2021: ($101,000) FY 2021-2022: ($103,900) FY 2022-2023: ($103,700) FY 2023-2024: ($616,000) FY 2023-24 Proposed Budget - Transfer to CIP (TOT)4,421,100$ 20 Pension Service Fund would then relieve the General Fund of payment more than $900,000 of the City’s UAL. Since the inception of the pension guidelines, the Employee Service Fund has an estimated fund balance of approximately $1 million ending FY 2022 -23. Based on the estimated year-end results of FY 2022-23, the City’s surplus (revenues minus expenditures including transfers) is almost $1.2 million. Therefore, Staff is proposing the maximum transfer allowed of $291,300 or 25% of the surplus from the General Fund to Employee Pension Service Fund in FY 2023-24. • Other Miscellaneous Transfers Out The transfers out for Sub-region One and the Improvement Authority are intended to cover annual maintenance charges and to maintain endowment requirements. Since the estimated interest earned in the funds are not enough to cover the costs incurred in these funds, the General Fund will need to transfer funds to subsidize Sub -region One in the amount of $60,000 and the Improvement Authority for Portuguese Bend for $15,000. This is an increase of $10,000 or 20% over revised budget for Sub-Region One and no change for the Improvement Authority Portuguese Bend from the prior year’s revised budget. On May 16, 2023, the City Council approved $70,000 transfers-out from General Fund to the Abalone Cove Sewer Fund. This is based on additional information received on the scheduled maintenance projects for the Abalone Cove Sewer Fund. Based on the fund's estimated expenditures, the transfer is necessary as the estimated revenues of $62,000 are not adequate to cover the estimated maintenance costs in FY 2023-24. In closing on expenditures, the following Charts 4 and 5 show the General Fund expenditures by type and department and their respective contribution in percentage (%) terms to the City’s overall total expenditures. Chart 4: General Fund Expenditures, by Department – FY 2022-23 vs. FY 2023-24 21 Chart 5: FY 2022-23 Draft General Fund Expenditures – by Categories FY 2023-24 General Fund – Projected Fund Balance Overall, based on the assumptions, Staff projects the fund balance for the General Fund on June 30, 2024, will be approximately $31.1 million, net of transfers. The fund balance is estimated to increase by $1.1 million over FY 2022-23 year-end estimates. After applying the City Council Reserve Policy of 50% of the operating budget and the transfers to the CIP Fund and Employee Pension Service Fund, the projected Unrestricted Fund Balance is approximately $13.1 million, which is a decrease of about $1.6 million or 11% from FY 2022-23 year-end estimates. A summary of the estimated FY 2023-24 Fund Balance calculation is illustrated in Table 6 on the next page. 22 Table 6: FY 2023-24 General Fund – Projected Fund Balance Summary FY 2023-24 One-Time and Recurring Revenues and Expenditures Pursuant to City Council Policy No. 45 - Balanced Operating Budget, the City Council shall adopt an annual budget where recurring expenditures do not exceed recurring revenues and ongoing program expenditures are not funded with one -time revenue sources. In accordance with this policy, Attachment E lists the details for FY 2023-24 General Fund Recurring vs. One-time Revenues and Expenditures. After capturing the regulatory increases and ongoing programs, the FY 2023 -24 Draft Budget positively exceeds the requirement pursuant to the City Council Policy No. 45, Balanced Operating Budget. The City has a structurally balanced operating budget with a surplus of $5 million. Overall, as shown in Table 7 on the next page, after including all operating expenditures, one-time expenditures, and transfers, the General Fund is projected to end the year with an unallocated balance of $715,300. There are several pending items that may have a financial impact in FY 2023 -24 but at this time, there is not enough information to be included in the draft budget. These items include the employee collective bargaining process with the American Federation of State, County, and Municipal Employees (AFSCME), the Comprehensive Classification and Compensation Study, and the potential cost associated with the grant funds to the Palos Verdes Peninsula Land Conservancy for acacia tree removals. Therefore, on May 16, 2023, the City Council affirmed to retain the unallocated balance of $715,300 rather than transferring it to the CIP Fund. 23 Table 7 – General Fund Recurring vs. One-time Revenues and Expenditures FY 2023-24 Capital Improvement Program Funds On April 12, 2023, the City Council conducted a workshop focusing on the Capital Improvement Program. Staff provided the City Council with information on the different categories of capital projects including projects that are completed, continuing, ongoing, new, and needs/wants list. As shown in Table 8, on May 16, 2023, the City Council approved the projects for FY 2023-24: Revenue Type Recurring One-time Total Property Tax 17,149,500$ $ - 17,149,500$ Transient Occupancy Tax 6,927,900 - 6,927,900 Sales Tax 2,855,800 - 2,855,800 Franchise taxes 2,200,000 - 2,200,000 Utility Users Tax 2,482,200 - 2,482,200 Permits & Fees 3,171,500 - 3,171,500 Other Taxes & Misc. Revenues 3,702,900 35,000 3,737,900 TOTAL REVENUES $ 38,489,800 $ 35,000 $38,524,800 Expenditure by Program Recurring One-time Total City Council 118,900$ $ - 118,900$ City Administration 3,990,300 41,000 4,031,300 City Attorney 950,000 - 950,000 Public Safety 8,249,000 - 8,249,000 Finance 1,564,400 - 1,564,400 Community Development 3,984,600 343,000 4,327,600 Public Works 7,613,800 258,000 7,871,800 Recreation & Parks 4,061,700 11,000 4,072,700 Non-department 2,177,800 150,000 2,327,800 TOTAL EXPENDITURES $ 32,710,500 $ 803,000 $33,513,500 STRUCTURAL SURPLUS/(DEFICIT)5,779,300 (768,000) 5,011,300 Transfers in - 270,000 270,000 Transfers out 4,566,000 - 4,566,000 UNALLOCATED BALANCE 1,213,300$ (498,000)$ 715,300$ FUND 101 - GENERAL FUND FY 2023-24 RECURRING VS. ONE-TIME REVENUES AND EXPENDITURES 24 Table 8 – FY 2023-24 Draft Budget – Capital Improvement Program Fund Name Project Code FY 2023-24 Draft Budget 330-CIP Abalone Cove Sewer Rehabilitation Program 8202 200,000 215-Prop C PVDS Landslide Area Resurfacing Program 8302 1,050,000 330-CIP PVDS Landslide Area Resurfacing Program 8302 320,000 330-CIP Portuguese Bend Landslide Remediation 8304 710,000 331-Federal Grant Portuguese Bend Landslide Remediation 8304 500,000 330-CIP PV Nature Preserve Signs Program 8420 30,000 330-CIP Point Vicente Interpretive Center "Bubbles" Statue 8417 75,000 330-CIP Park Playground Improvements 8426 115,000 330-CIP New Civic Center Complex 8503 1,025,000 330-CIP Restroom Improvements at PVIC 8508 380,000 333-ARPA Restroom Improvements at PVIC 8508 350,000 330-CIP Facilities Asset Management Program 8509 825,000 330-CIP Storm Drain Asset Mgmt Program & Master Plan Update 8701 500,000 330-CIP Stormwater Drainage Improvements PVDS at Peppertree Dr.8715 760,500 331-Federal Grant Stormwater Drainage Improvements PVDS at Peppertree Dr.8715 1,939,500 343-SCW Grant Multi-Jurisdictional Stormwater Treatment - Torrance Airport 8721 245,000 330-CIP Storm Drain Outlet Improvements at Ocean Crest Drive 8722 115,000 330-CIP Storm Drain Improvements at Peacock Ridge Road 8723 325,000 220-MR Roadway Asset Management Program - Crenshaw Blvd.8808 175,000 333-ARPA Roadway Asset Management Program - Crenshaw Blvd.8808 500,000 221-MM Grant Western Avenue Traffic Flow Improvements 8809 455,000 310-CDBG ADA Infrastructure Improvements 8810 150,000 330-CIP Western Avenue Beautification (long term)8840 537,400 333-ARPA Western Avenue Beautification (long term)8840 2,362,600 330-CIP Traffic Calming Program - Citywide 8846 200,000 220-MR Traffic Calming Program - Citywide 8846 385,000 331-Federal Grant Guardrail Improvements along PVDE 8847 40,000 330-CIP Retaining Wall at 3001 Crest Road 8853 330,000 STP-L Funds Roadway Asset Management Program - PVDS 8855 145,000 202-Gas Tax (SB1) Roadway Asset Management Program - Residential Streets 8856 1,000,000 330-CIP Roadway Asset Management Program - Residential Streets 8856 1,225,000 TOTAL $16,970,000 25 The funding for the capital improvement program is comprised of the CIP Fund and Special Revenue Funds. The CIP Fund’s main source of revenue comes from the TOT Transfers-Out from the General Fund. The other funding sources for the capital improvement program are from the City’s Special Revenues. For FY 2023-24 approved projects, the funds are from the Gas Tax SB-1, Proposition C, Measure R, Measure M, CDBG Grant, American Rescue Plan Act (ARPA), Measure W, and Other Grants. Staff ensure that the Special Revenue Funds are utilized first for any qualified project before CIP Fund reserves are appropriated. Table 9 below summarizes the funding allocations for FY 2023-24. Additional information on the projects for FY 2023-24 funding is also captured in Attachment D. Table 9: FY 2023-24 Draft Budget - Capital Improvement Program – Budget Allocations FY 2023-24 Projected Fund Balance – Capital Improvement Program Funds Overall, as summarized in Table 10 on the next page, at the end of FY 2023-24, the Capital Improvement Program funds are estimated to receive $1 3.4 million in revenues. There are almost $3 million of estimated operating expenditures, $16.9 million of capital projects, and $4.6 million of carryover capital projects. After applying the City Council Reserve Policy, the estimated Excess Reserve for all funds in the Capital Improvement Program is $23.6 million. Table 10 also summarizes the FY 2023-24 estimated revenues, expenditures, fund balance, and unrestricted fund balance. Fund Fund Name FY 2023-24 Draft Budget 202 Gas Tax (SB-1) 1,000,000 215 Proposition C 1,050,000 220 Measure R 560,000 221 Measure M 455,000 310 CDBG 150,000 330 CIP 7,672,900 331 Federal Grant 2,479,500 333 ARPA 3,212,600 343 SCW Grant 245,000 332 STP-L Funds 145,000 TOTAL $16,970,000 26 Table 10 –Estimated Fund Balance - Capital Improvement Program Funds Special Revenues The City’s Special Revenues are taxes and other revenues set aside for a specific or restricted purpose. The City’s major special revenue funds are the Gas Tax, Proposition A, ARPA, Proposition C, Measure R, Measure M, Measure A, 1911 Act Street Lighting, and other grants. In addition to funding the CIP projects, a few other Special Revenues are also designated for operating expenditures such as street maintenance, public facility upgrades and maintenance, public right -of-way maintenance, park upgrades, park maintenance, and transit related expenses. Table 11 below is a summary of the estimated FY 2023 -24 fund balance of $8.1 million for the Other Special Revenue Funds not utilized for Capital Improvement Programs. Table 11 – FY 2023-24 Estimated Fund Balance – Special Revenue Funds Internal Service Funds The City uses an Internal Service Fund (ISF) as an accounting mechanism to accumulate and allocate costs internally among the City’s various functions. The City uses th e Special Revenue Funds Estimated Beginning Fund Balance - 7/1/2023 $7,367,808 Add: Revenues 2,661,870 Add: Transfers-In from General Fund 70,000 Total Revenues 2,731,870 Less: Expenditures (1,709,227) Less: Transfers-Out (270,000) Total Expenditures (1,979,227) Estimated Ending Fund Balance - 6/30/2024 8,120,451 Restricted by City Council Policy - Estimated Restricted Fund Balance - 06/30/2024 $8,120,451 27 Equipment Replacement Fund (ERF) to account for its fleet of vehicles, computer systems, furniture, and equipment, and the EPSF to account for employee pension service costs, as described below. The funding and uses for the ISF is typically from the General Fund and restricted by the City Council. In accordance with the pension guidelines for transparency, during the fiscal year, Staff maintains the separate tracking of the fund’s financial transactions in the EPSF. At the end of the fiscal year, in compliance with accounting and audit requirements for the City’s ACFR presentation, this amount is included in the General Fund’s fund balance as part of the year-end closing process. Equipment Replacement Fund The ERF is an internal service fund that is used to accumulate funding to replace City equipment, furniture, and vehicles at the end of the designated life cycle. The equ ipment replacement charges are General Fund expenditures for all departments and the same amounts are then recorded as revenues in the ERF. Based on the recently modified City Council Policy No. 41 Reserve Policies, the City will maintain a minimum reserve of 75% but no more than 100% of the estimated replacement cost for equipment assets that are due to be replaced in the City’s next fiscal year. Staff estimates that the ERF will continue to have excess reserves by the end of FY 202 3-24. Therefore, Staff recommends annual charges of $246,900 to meet the minimum reserve of 75% instead of 100% of estimated replacement costs. The same amount is recorded as revenues in ERF plus estimated interest earnings of $3 8,000. For expenditures, the estimated amount is approximately $621,000 or 22% of the replacement value. As with previous years, before replacing any fully funded equipment/vehicles, Staff will continue to assess the status and extend the life of the asset when possible. As a result, the projected fund balance on June 30, 2024, is almost $2.7 million and after applying the $2.1 million City Council policy reserves, the ERF is estimated to end the year with an excess reserve of approximately $561,300 as illustrated in Table 12. Employee Pension Service Fund (EPSF) On February 2, 2021, the City Council approved the CalPERS Pension Plan Guidelines which provides a financial plan to address the City’s outstanding pension liability and CalPERS’ continuous change in valuation methodology. Based on City Council’s discretion, the goal is to transfer funds to the EPSF of at least 10%, but no more than 25%, of the annual General Fund surplus (revenues minus expenditures, including transfers). As a result, the accumulated funds in the EPSF would then relieve the General Fund of payment more than $900,000 of the City’s Unfunded Accrued Liability (UAL). At the April 6 Budget Workshop, the City Council approved the Staff’s recommendation of FY 2023-24 transfers-in of $291,300 from General Fund, $9,700 of interest earning, 28 and expenditures of $135,700 for the increases in the benefits category. At the end of FY 2023-24, the EPSF fund balance is estimated at almost $1 million. In summary, Table 12 below includes the estimated FY 2023-24 fund balance for Internal Service Funds. Table 12 – FY 2023-24 Estimated Fund Balance – Internal Service Fund FY 2023-24 Improvement Authority (IA) The FY 2023-24 Budget for IA is divided into two legally restricted funds, Abalone Cove and Portuguese Bend, and provides funding to maintain landslide mitigation resources in both geographic locations. At the end of FY 2022-23, fund balance is estimated to be $78,224 for the Portuguese Bend IA Fund and $1,078,873 for the Abalone Cove IA Fund, respectively. The Abalone Cove IA Fund is expected to have an estimated spendable fund balance of $78,873 as the Horan agreement legally requires the City to set aside $1 million of the fund balance to maintain landslide abatement improvements constructed by the former Redevelopment Agency. In FY 2023-24, total expenditures are projected at $55,000 and total revenues including transfers for $25,550 for both funds. As illustrated in Table 13, based on FY 2023-24 budgeted revenues and expenditures, Staff estimates that at the end of FY 2023 -24, the Portuguese Bend IA Fund will have a remaining fund balance of $48,874 and the Abalone Cove IA Fund will have a remaining fund balance of $1,127,647 (Attachment B). Table 13 – FY 2022-23 Summary of Funds – Improvement Authority Equipment Replacement Fund Employee Pension Service Fund TOTAL Estimated Beginning Fund Balance - 7/1/2023 $ 3,002,584 $ 792,608 $ 3,795,192 Add: Revenues 284,900 - 284,900 Add: Transfers-In from General Fund - 301,000 301,000 Total Revenues 284,900 301,000 585,900 Less: Expenditures (621,000) (135,700) (756,700) Less: Transfers-Out - - - Total Expenditures (621,000) (135,700) (756,700) Estimated Ending Fund Balance - 6/30/2024 2,666,484 957,908 3,624,392 Restricted by City Council Policy (2,105,195) (957,908) (3,063,103) Estimated Excess/(Deficit) Reserve - 06/30/2024 $561,290 - $561,290 Fund Estimated Fund Balance 7/1/2023 Revenues Transfers-In Expenditures Transfers-Out Estimated Fund Balance 6/30/2024 285-IA Portuguese Bend Maint. $78,224 $650 $15,000 $45,000 $0 $48,874 795-IA Abalone Cove Maint. $1,078,873 $9,900 $0 $10,000 $0 $1,078,773 Totals $1,157,097 $10,550 $15,000 $55,000 $0 $1,127,647 FY 2023-24 IMPROVEMENT AUTHORITY 29 Since interest earnings generated from available fund balance is the sole revenue source for this budget, Staff anticipates maintenance costs will continue to outpace the projected revenues needed to cover them in future years. Staff requests that the Commission (City Council) approve the draft budget of the Improvement Authority for FY 2023-24 by adopting the attached resolution. If the Commission (City Council) wishes to make any changes to the draft budget, they can be read into the record during the meeting. ADDITIONAL INFORMATION: Options for Reserving Funds for Major Capital Improvements On May 16, 2023, Staff presented a fund balance projection for the Capital Improvement Program using a blended spend rate of 50% for carryover capital projects and the proposed capital projects in the preliminary 5-year CIP. Using this approach, the CIP Fund is projected to have an ending fund balance of approximately $17 million in FY 2027-28. After applying the $5 million reserve, CIP Fund has almost $12 million in unrestricted fund balance. In line with the City Council’s direction, Staff presented four options for allocating funds towards major projects such as the Civic Center Master Plan and Portuguese Bend Landslide Remediation projects. Overall, the City Council directed Staff to further evaluate the option of transferring a portion or the entire $5 million in a separate fund dedicated to the Civic Center Master Plan. Additionally, Councilmember Alegria suggested that $10 million could also be considered as part of the FAC’s review and future recommendation to the City Council. This option may accrue funds on a yearly basis, subject to approval through the annual budgeting process. Moreover, the City Council directed Staff to present this option to the Finance Advisory Committee, seeking their feedback and recommendations. Hence, Staff has added this item for the Committee’s review in the coming months. Once the feedback and recommendations from the Committee are received, Staff will prepare a staff report for the City Council’s consideration. Public Notice On June 1 and 8, 2023, a public notice was published in the Peninsula News announcing tonight’s public hearing for the City Council’s consideration to adopt the FY 2023-24 Budget consisting of the General Fund, Capital Improvement Program, Special Revenues, Internal Service Funds, and Improvement Authorities. As of June 13, 2023, no public comment was received. 30 CONCLUSION: After the Budget Workshops, Staff estimates the General Fund will continue to end FY 2023-24 with revenues ($38.8 million) exceeding expenditures ($38.1 million) by $715,000. The City Council may utilize this amount in FY 2023-24 once more information regarding pending matters and their fiscal impact becomes available. After including the transfers and 50% reserves pursuant to the City Council’s reserve policy, t he General Fund is projected to end FY 2023-24 with a healthy Unrestricted Fund Balance of $13 million. The CIP Fund FY 2023-24 preliminary budget includes $4.9 million in revenues and expenditures for capital projects of $7.7 million and carryover projects of $3.3 million. As such, the CIP Fund balance is estimated at almost $28.6 million. After applying the $5 million City Council’s reserve policy, the estimated Excess Reserve for CIP is almost $23.6 million. The Special Revenues Funds and Internal Service Funds are also estimated to end FY 2023-24 with stable fund balances. The Special Revenue Funds are estimated to end the year at approximately $8.1 of restricted fund balance and the Internal Service Funds are estimated to end the year at $561,300, net of City Council’s reserve policy. In order to legally adopt the FY 2023-24 Budget for the City and the Improvement Authorities, Staff recommends that the City Council approve the attached two resolutions (Attachment A and B), approving the FY 2023-24 Budget. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action is available for the City Council’s consideration: 1) Take other action, as deemed appropriate. 31 RESOLUTION NO. 2023-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2023-2024. WHEREAS, on June 20, 2023, the City Council opened a duly published Public Hearing to receive public input regarding the budget for FY 2023-24. BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES: Section 1: That a revenue and expenditure/expense budget is hereby adopted. The adopted budget, by fund, is per Exhibit A with a total Estimated Ending Fund Balance of $51,793,189 for all City funds (net of City Council Policy Reserves) as of June 30, 2024, exclusive of the City’s Improvement Authorities. A.The City Manager is authorized to transfer certain Budget Appropriation Balances within functions and/or programs when deemed necessary to do so in accordance with Chapter 3.32 of the Rancho Palos Verdes Municipal Code. B.City Council approval will be required for any significant changes involving increased or decreased service levels. C.The Director of Finance shall be responsible for constant monitoring of the budget and shall establish and implement appropriate control mechanisms necessary for said purpose, after approval by the City Manager. Section 2: The FY 2023-24 Revenue Budget is hereby adopted, establishing the following Governmental and Internal Service Fund contribution levels: A-1 Resolution No. 2023-__ Page 2 of 6 Section 3: The FY 2023-24 Budget is hereby adopted, establishing the following transfers into the following funds: GENERAL 38,524,800$ CIP 502,000 GAS TAX 2,263,700 1972 ACT 300 EL PRADO LIGHTING 3,880 1911 ACT 776,200 WASTE REDUCTION 197,400 AIR QUALITY MANAGEMENT 55,600 PROPOSITION C 1,003,900 PROPOSITION A 1,223,000 PUBLIC SAFETY GRANTS 170,100 MEASURE R 772,300 MEASURE M 852,800 HABITAT RESTORATION 3,800 SUBREGION 1 MAINTENANCE 9,400 MEASURE A 101,900 ABALONE COVE SEWER DISTRICT 61,100 DONOR RESTRICTED CONTRIBUTIONS 46,900 CDBG 150,000 FEDERAL GRANTS - STATE GRANTS 690 ARPA 83,000 QUIMBY 7,600 LOW-MODERATE INCOME HOUSING 39,000 AFFORDABLE HOUSING IN LIEU 11,000 ENVIRONMENTAL EXCISE TAX 24,800 BICYCLE & PEDESTRIAN ACCESS 48,500 MEASURE W 690,300 TOTAL GOVERNMENTAL FUND REVENUES 47,623,970$ A-2 Resolution No. 2023-__ Page 3 of 6 Section 4: The FY 2023-24 Budget is hereby adopted, establishing the following transfers from the following funds: Section 5: The FY 2023-24 Operating and Capital Improvement Budget Programs are hereby adopted, establishing the following allocations. GENERAL 270,000$ CIP 5,310,500 SUBREGION 1 MAINTENANCE 60,000 ABALONE COVE SEWER MAINTENANCE 70,000 EMPLOYEE PENSION FUND 301,000 *TOTAL OPERATING TRANSFERS IN 6,011,500$ *(1) Excludes $15,000 transfers-in from the General Fund to the Improvement Authority - Portuguese Bend. (2) CIP transfers-in includes surplus transfers per City Council Reserve Policy of $889,500. (3) Employee Pension transfers-in includes transfers per Employee Pension Guidelines of $291,300. GENERAL 5,746,800$ PUBLIC SAFETY GRANTS 170,000 MEASURE A 100,000 TOTAL OPERATING TRANSFERS OUT 6,016,800$ *(1) Includes $15,000 transfers-out from the General Fund to the Improvement Authority - Portuguese Bend. (2) General Fund transfers-out include $889,500 prior year surplus to CIP per City Council Reserve Policy and $291,300 to Employee Pension per Employee Pension A-3 Resolution No. 2023-__ Page 4 of 6 City Council 118,900$ Legal Services 950,000 Public Safety - Sheriff Services 7,872,000 Public Safety - Special Programs 377,000 City Manager 1,203,500 City Clerk 601,900 Community Outreach 89,300 Emergency Preparedness 219,900 Human Resources 446,000 Information Technology - Data 1,089,600 Information Technology - Voice 151,000 RPV TV 230,100 Finance 1,564,400 Non-departmental 2,327,800 Community Development Administration 760,900 Planning 1,407,900 Building & Safety Services 1,074,200 Code Enforcement 293,300 View Restoration/Preservation 401,300 Geology 160,000 Animal Control 230,000 Public Works Administration 3,309,800 Traffic Management 261,400 Storm Water Quality 312,400 Public Building Maintenance 717,700 Parks Maintenance 1,065,000 Street Landscape Maintenance 782,000 Trails & Open Space Maintenance 481,000 Fuel Modification 795,000 Vehicle Maintenance 72,500 Sewer Maintenance 75,000 Recreation Administration 1,264,400 Other Recreation Facilities 115,100 Fred Hesse Jr. Park 217,200 Robert E. Ryan Park 78,100 Ladera Linda Community Center 233,900 Abalone Cove Shoreline Park 148,700 Special Events 286,000 Point Vicente Interpretive Center 433,700 REACH 82,600 Recreation Support Services - City Run Sports & Activities 3,000 Contract Classes 148,900 Volunteer Program 5,000 Park Rangers 513,600 Parking Enforcement 25,000 Eastview Park 39,200 Open Space Management 478,300 SUBTOTAL GENERAL FUND EXPENDITURES 33,513,500$ A-4 Resolution No. 2023-__ Page 5 of 6 Street Maintenance - Pavement Management 980,900$ Street Maintenance - Landscape Maintenance 605,000 Roadway Asset Management Program (CIP)1,000,000 SUBTOTAL GAS TAX FUND EXPENDITURES 2,585,900$ CIP 7,672,900$ EL PRADO LIGHTING 500 1911 ACT 155,000 WASTE REDUCTION 298,000 AIR QUALITY MANAGEMENT - PROPOSITION C 1,050,000 PROPOSITION A 854,227 MEASURE R 685,000 MEASURE M 1,356,400 FEDERAL GRANTS 2,479,500 ARPA 3,212,600 STATE GRANTS 355,000 HABITAT RESTORATION 179,000 SUBREGION 1 MAINTENANCE 30,000 ABALONE COVE SEWER MAINTENANCE 173,500 DONOR RESTRICTED CONTRIBUTIONS 18,000 COMMUNITY DEVELOPMENT BLOCK GRANT 150,000 ENVIRONMENTAL EXCISE TAX - BICYCLE & PEDESTRIAN ACCESS - MEASURE W 608,300 SUBTOTAL OTHER FUNDS EXPENDITURES 19,277,927$ EQUIPMENT REPLACEMENT 621,000$ EMPLOYEE PENSION SERVICE FUND 135,700$ SUBTOTAL INTERNAL SERVICE FUNDS EXPENDITURES 756,700$ A-5 Resolution No. 2023-__ Page 6 of 6 PASSED, APPROVED and ADOPTED the 20th day of June 2023. __________________________ _ ATTEST: MAYOR _____________________ CITY CLERK State of California ) County of Los Angeles ) City of Rancho Palos Verdes ) I, TERESA TAKAOKA, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2023-__ was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on June 20, 2023. __________________________ _ CITY CLERK A-6 RESOLUTION NO. IA 2023-__ A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2023-2024 WHEREAS, the Commission of the Rancho Palos Verdes Joint Powers Improvement Authority desires to adopt the following resolution adopting the operating budget for FY 2023-24; and WHEREAS, the Rancho Palos Verdes Joint Powers Improvement Authority currently has an estimated $1,055,769 in available funds as of June 30, 2024. NOW, THEREFORE, BE IT RESOLVED, THAT THE COMMISSION OF THE RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY DOES HEREBY ADOPT THE FOLLOWING FY 2023-24 OPERATING AND CAPITAL BUDGET. Section 1: The FY 2023-24 Revenue Budget (inclusive of transfers from the City's General Fund) is hereby adopted, establishing the following revenue levels: Interest Earnings - Portuguese Bend $ 650 Interest Earnings - Abalone Cove 9,900 Transfer In – Portuguese Bend 15,000 Transfer In – Abalone Cove 0 TOTAL REVENUES $ 25,500 Section 2: An operating budget for FY 2023-24 is hereby adopted as contained in the Annual Budget of the Rancho Palos Verdes Joint Powers Improvement Authority attached hereto and incorporated and referenced as part of this resolution. The following expenditure levels are hereby established: Maintenance - Portuguese Bend $ 45,000 Maintenance - Abalone Cove 10,000 TOTAL OPERATING EXPENDITURES $ 55,000 Section 3: Upon adoption of said Budget, the Authority may revise and/or update said Budget in part or in its entirety, depending on the Authority's fiscal resources, circumstances, and needs. Section 4: The Chief Administrative Officer of the Rancho Palos Verdes Joint Powers Improvement Authority shall be responsible for administration and execution of said Budget. B-1 Resolution No. IA 2023-__ Page 2 of 2 PASSED, APPROVED, and ADOPTED the 20th day of June 2023. __________________________ AUTHORITY CHAIRPERSON ATTEST: ______________________ AUTHORITY SECRETARY State of California ) County of Los Angeles ) City of Rancho Palos Verdes ) I, Teresa Takaoka, Authority Secretary of the Rancho Palos Verdes Joint Powers Improvement Authority, hereby certify that the above Resolution No. IA 2023-__ was duly and regularly passed and adopted by the said Joint Powers Improvement Authority at regular meeting thereof held on June 20, 2023. __________________________ AUTHORITY SECRETARY B-2 Fund Revenues Transfers In Expenditures Out General Fund Balance 30,363,100 38,524,800 270,000 33,513,500 5,746,800 29,897,600 Restricted Amount (Policy Reserve) (15,292,950)(16,756,750) General Fund Unrestricted Surplus 15,070,150 38,524,800 270,000 33,513,500 5,746,800 13,140,850 Restricted by Council Action CIP 34,663,955 502,000 5,310,500 7,672,900 - 24,495,277 Equipment Replacement 3,002,584 284,900 - 621,000 - 561,289 Employee Pension Plan 792,608 9,700 291,300 135,700 - 1,249,208 Subtotal Restricted By Council Action 38,459,147 796,600 5,601,800 8,429,600 - 26,305,774y Agencies Gas Tax 2,233,386 2,263,700 - 2,585,900 - 1,911,186 1972 Act 29,866 300 --- 30,166 El Prado Lighting 46,528 3,880 -500 - 49,908 1911 Act 2,584,945 776,200 - 155,000 - 3,206,145 Waste Reduction 300,188 197,400 - 298,000 - 199,588 Air Quality Management 55,782 55,600 --- 111,382 Proposition C 125,580 1,003,900 - 1,050,000 - 79,480 Proposition A 2,108,015 1,223,000 - 854,227 - 2,476,788 Public Safety Grants 23,986 170,100 -- 170,000 24,086 Measure R 2,296,047 772,300 - 685,000 - 2,349,070 Measure M 286,391 852,800 - 1,356,400 - (217,209) Habitat Restoration 165,203 3,800 - 179,000 - (9,997) Subregion 1 Maintenance 771,550 9,400 60,000 30,000 - 810,950 Measure A 191,398 101,900 -- 100,000 193,298 Abalone Cove Sewer Maintenance 9,892 61,100 70,000 173,500 - (32,508) Donor Restricted Contributions 850,847 46,900 - 18,000 - 879,747 CDBG 24,010 150,000 - 150,000 - 24,010 Federal Grants --- 2,479,500 - (2,479,500) State Grants 1,381,829 690 - 355,000 - 1,027,519 ARPA 2,082,459 83,000 - 3,212,600 - (2,023,946) Quimby 133,742 7,600 --- 141,342 Low-Mod Income Housing 378,970 39,000 --- 417,970 Affordable Housing In Lieu 897,865 11,000 --- 908,865 Environmental Excise Tax 67,545 24,800 --- 92,345 Bikeways 29,100 48,500 --- 77,600 Measure W 1,005,198 690,300 - 608,300 - 1,087,198 Subtotal Restricted By Law Or External Agencies 18,080,322 8,597,170 130,000 14,190,927 270,000 12,346,565 Total Governmental Funds 71,609,619 47,918,570 6,001,800 56,134,027 6,016,800 51,793,189 Improvement Authorities Improv Auth - Portuguese Bend 78,224 650 15,000 45,000 - 48,874 Improv Auth - Abalone Cove 1,078,873 9,900 - 10,000 - 1,078,773 Subtotal For Improvement Authorities 1,085,219 10,550 15,000 55,000 - 1,055,769 Grand Total of All Funds 72,694,838 47,929,120 6,016,800 56,189,027 6,016,800 52,848,958 *Funds with deficit balances will be offset by purchase order carry-overs during FY 2022-23 year-end closing process. The deficit in the Federal Grants will be offset by future grant reimbursements. FY 2023-24 summary includes surplus transfers per City Council Reserve Policy of $889,500 City of Rancho Palos Verdes FY 2023-24 Fund Summary Estimated Fund Balance 6/30/2023 FY2023-24 Estimated Resources FY2023-24 Estimated Appropriations Estimated Fund Balance 6/30/2024 C-1 35 Statement Of Revenues - All Funds City of Rancho Palos Verdes | Adopted Budget 2023-2024 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEWStatement Of Revenues - All Funds FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget General Fund Property Taxes 3102-3103 property tax 8,576,363 9,072,028 9,392,563 9,997,900 10,474,100 3107 property tax in Lieu of VLF 5,150,914 5,384,633 5,565,565 5,892,900 6,173,400 3108 Redevelopment property tax trust 55,594 54,130 48,336 50,000 52,000 3110 property transfer tax 401,021 570,712 735,378 435,000 450,000 Total Property Taxes 14,183,892 15,081,503 15,741,842 16,375,800 17,149,500 Other Taxes 3101 Golf tax 394,765 632,886 733,545 698,200 720,120 3111 Franchise taxes 2,146,037 2,203,130 2,278,003 2,150,000 2,200,000 3112 Sales and Use tax 2,079,675 1,829,019 2,679,211 2,748,000 2,759,000 3113 Sales tax - pW (pSAF) 83,667 90,313 103,232 96,400 96,800 3114-3117 Utility Users tax 1,912,370 2,245,825 2,525,992 2,555,000 2,482,200 3120-3121 transient occupancy tax 3,909,799 3,115,435 6,170,132 6,927,900 6,927,900 3210 Business License tax 896,166 675,299 730,966 689,800 700,000 Total Other Taxes 11,422,479 10,791,907 15,221,081 15,865,300 15,886,020 Other License & Permit 3202 Building & Safety permits 954,408 1,050,030 1,862,181 2,070,600 1,850,000 3203 Building & Safety plan Check 335,342 307,328 538,280 503,500 500,000 3205 Film permits 20,081 2,671 42,972 19,900 21,000 3206 Animal Control Fees 26,734 28,803 26,944 21,100 25,200 3207 Building & Safety Fees 977 (362) 365 400 800 3208 Building & Safety State Building Standard 559 (53) 299 400 1,000 3209 Building & Safety Geology Fees 124,614 152,099 240,065 200,000 210,000 3212 Business License penalty 20,505 6,184 18,227 12,700 12,500 3213 parking permits 628 375 88 400 400 3214 parking decals 590 594 594 500 600 3215 plan & Zone permits 330,124 362,786 481,031 420,000 425,000 3217 View Restoration Fees 5,106 15,318 5,106 5,400 5,700 3218 plan - Misc. Fees 7,848 8,622 9,509 - - 3219 Right of Way permits 106,186 76,205 128,589 180,000 128,800 3220 dumpster permits 3,626 3,038 2,304 3,000 3,000 Total Other License & Permit 1,937,328 2,013,638 3,356,554 3,437,900 3,184,000 Fines & Forfeitures 3501 tow Fees 5,976 5,229 4,067 4,400 4,400 3502 False Alarm Fines 11,250 7,400 8,500 - - 3503 Misc. Court Fines 95,301 199,353 188,739 143,000 153,000 4140-3504 Code enforcement Citations 15,338 46,053 42,906 6,000 15,000C-2 City of Rancho Palos Verdes | Adopted Budget 2023-2024 Statement Of Revenues - All Funds 36 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget 5123-3506 preserve park Citation - 200 100 - - Total Fines & Forfeitures 127,865 258,235 244,312 153,400 172,400 Rentals 3602 Rental/Leases 158,929 356,613 437,712 435,200 441,600 5120-3602 Rent - other Recreational Facilities 5,173 2,190 739 2,600 2,600 5130-3602 Rent - Hesse park 30,436 960 20,212 27,000 32,000 5140-3602 Rent - Ryan park 9,181 6,339 6,825 7,500 9,000 5150-3602 Rent - Ladera Linda 2,593 (360) - - 15,000 5180-3602 Rent - pVIC 141,694 - 141,640 105,000 130,000 Total Rentals 348,006 365,742 607,128 577,300 630,200 Interests 3601 Interest on Investments 358,232 186,670 398,318 321,300 314,000 3606 Investment Fair Value Adjustment - - (651,176) - - Total Interests 358,232 186,670 (252,858) 321,300 314,000 Charges for Services 5122-3411 parking Lot Fees - - 29,626 20,000 20,000 5160-3411 Shoreline parking Lot Fees 237,209 417,037 243,699 130,000 230,000 5120-3412 program/event Fees 5,723 1,840 6,165 4,000 4,000 5131-3412 program/event Fees 42,642 16,060 125,769 140,000 200,000 5170-3412 program Fees - - 19,167 10,000 30,000 5190-3412 ReACH - program Fees 2,772 - 2,676 8,300 5,000 Total Charges For Services 288,346 434,937 427,102 312,300 489,000 Intergovernmental Revenue 9101-3301 Federal Grant Income - 515,258 - - - Total Intergovernmental - 515,258 - - - Other Revenue 3801 Special Fund Administration 149,507 99,507 100,014 93,200 100,000 5170-3901 donations - Special events 100 1,000 26,100 21,000 25,000 5180-3901 donations - pVIC 8,423 1,875 10,002 4,000 8,000 5190-3901 donations - ReACH 942 - 2,050 2,000 2,000 3901 donations - General - - 1,500 - - 3902 CASp Fees 5,635 5,360 6,970 5,000 5,000 3904 RdA Loan payment 114,494 239,062 123,520 227,000 264,680 3908 Successor Agency Adminstration - 8,000 - - - 5180-3701 pVIC Gift Shop 92,494 12,840 104,463 120,000 120,000 1430-3999 Misc. Revenues 1,360 80 160 500 500 3999 Misc. Revenues 184,904 144,968 191,503 162,800 174,500 Total Other Revenue 557,859 512,692 566,282 635,500 699,680 Total Operating Revenue 29,224,007 30,160,582 35,911,443 37,678,800 38,524,800C-3 37 Statement Of Revenues - All Funds City of Rancho Palos Verdes | Adopted Budget 2023-2024 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Inter-Fund Transfers 9217 transfer In public Safety Grant 175,000 130,000 160,000 250,000 170,000 9224 transfer in Measure A Maintenance 100,000 - 150,000 50,000 100,000 Total Transfers In 275,000 130,000 310,000 300,000 270,000 Total General Fund 29,499,007 30,290,582 36,221,443 37,978,800 38,794,800 All Other Funds State Gas Tax Fund Intergovernmental Revenue 3304 State Gas tax - 2103 293,467 278,418 362,089 363,300 419,400 3305 State Gas tax - 2105 217,102 212,605 251,253 255,400 277,700 3306 State Gas tax - 2106 127,927 123,979 149,037 149,300 162,200 3307 State Gas tax - 2107 274,133 287,691 303,860 305,900 333,600 3308 State Gas tax - 2107.5 6,000 6,000 12,000 6,000 6,000 3309 State Gas tax - 2031 737,134 773,632 842,374 918,000 1,046,300 Total Intergovernmental Revenue 1,655,763 1,682,325 1,920,613 1,997,900 2,245,200 Other Revenue 3999 Misc. Revenues 49,279 - - - - Total Other Revenue 49,279 - - - - Interest 3601 Interest on Investments 21,853 5,548 15,232 17,410 18,500 3606 Investment Fair Value Adjustment - - (24,986) 24,986 - Total Interest 21,853 5,548 (9,754) 42,396 18,500 Total State Gas Tax Fund 1,726,895 1,687,873 1,910,859 2,040,296 2,263,700 1972 Act Fund Interest 3601 Interest on Investments 501 240 391 350 300 3606 Investment Fair Value Adjustment - - (594) 594 - Total 1972 Act Fund 501 240 (203) 944 300 C-4 City of Rancho Palos Verdes | Adopted Budget 2023-2024 Statement Of Revenues - All Funds 38 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget El Prado Fund Other Taxes 3102 Assessments 2,882 2,971 3,132 3,300 3,380 Interest 3601 Interest on Investments 597 312 559 500 500 3606 Investment Fair Value Adjustment - - (864) 864 - Total El Prado Fund 3,479 3,283 2,827 4,664 3,880 1911 Act Fund Other Taxes 3102 Assessments 725,690 769,945 806,016 729,500 751,300 3999 Misc Revenues 208,102 - 98,313 - - Interest 3601 Interest on Investments 24,346 12,912 23,793 23,450 24,900 3606 Investment Fair Value Adjustment - - (38,760) 38,760 - Total 1911 Act Fund 958,138 782,857 889,362 791,710 776,200 Waste Reduction Fund Intergovernmental Revenue 3302 Used oil payment 22,269 15,952 76,287 6,600 - Total Intergovernmental 22,269 15,952 76,287 6,600 - Charges for Service 3406 AB 939 Fees 194,632 187,231 200,137 190,000 192,500 Interest 3601 Interest on Investments 7,564 3,606 4,943 4,620 4,900 3606 Investment Fair Value Adjustment - - (7,292) 7,292 - Total Waste Reduction Fund 224,465 206,789 274,075 208,512 197,400 Air Quality Management Fund Intergovernmental Revenue 3303 AB 2766 Revenue 53,834 54,492 39,723 54,000 54,000 Interest 3601 Interest on Investments 1,915 1,208 1,896 1,540 1,600 3606 Investment Fair Value Adjustment - - (2,850) 2,850 - Total AQMD Fund 55,749 55,700 38,769 58,390 55,600 C-5 39 Statement Of Revenues - All Funds City of Rancho Palos Verdes | Adopted Budget 2023-2024 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Proposition “C” Transportation Fund Intergovernmental Revenue 3303 proposition “C” Sales tax 686,691 710,280 874,133 840,600 994,000 3999 Miscellaneous Revenue - 26,000 - - - Interest 3601 Interest on Investments 14,727 8,185 10,433 9,360 9,900 3606 Investment Fair Value Adjustment - - (13,907) 13,907 - Total Proposition “C” Fund 701,418 744,465 870,659 863,867 1,003,900 Proposition “A” Transportation Fund Intergovernmental Revenue 3303 proposition “A” Sales tax 827,835 856,312 1,053,834 1,013,400 1,198,400 Interest 3601 Interest on Investments 46,964 13,627 22,260 23,180 24,600 3606 Investment Fair Value Adjustment - - (35,330) 35,330 - Total Proposition “A” Fund 874,799 869,939 1,040,764 1,071,910 1,223,000 Public Safety Fund Intergovernmental Revenue 3302 CA Brulte (CopS) 155,948 156,727 161,285 165,200 168,500 Interest 3601 Interest on Investments 2,131 1,059 1,745 1,550 1,600 3606 Investment Fair Value Adjustment - - (2,693) 2,693 - Total Public Safety Fund 158,079 157,786 160,337 169,443 170,100 Measure “R” Transit Sales Tax Fund Intergovernmental Revenue 3303 Measure “R” Sales tax 514,282 533,448 655,494 630,400 745,500 Interest 3601 Interest on Investments 18,778 11,186 23,836 25,230 26,800 3606 Investment Fair Value Adjustment - - (37,914) 37,914 - Total Measure “R” Fund 533,060 544,634 641,416 693,544 772,300 C-6 City of Rancho Palos Verdes | Adopted Budget 2023-2024 Statement Of Revenues - All Funds 40 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Measure “M” Transit Sales Tax Fund Intergovernmental Revenue 3303 Measure “M” Sales tax 578,741 604,417 741,767 714,500 844,900 Interest 3601 Interest on Investments 1,877 2,244 6,628 7,520 7,900 3606 Investment Fair Value Adjustment - - (10,717) 10,717 - Total Measure “M” Fund 580,618 606,661 737,678 732,737 852,800 Habitat Restoration Fund Interest 3601 Interest on Investments 15,225 6,092 5,884 3,640 3,800 3606 Investment Fair Value Adjustment - - (7,925) 7,925 - Other Revenues 3999 Misc Revenues 3,500 - - - - Total Habitat Restoration Fund 18,725 6,092 (2,041) 11,565 3,800 Subregion 1 Fund Interest 3601 Interest on Investments 13,442 6,298 9,929 8,910 9,400 3606 Investment Fair Value Adjustment - - (15,024) 15,024 - Transfers In 9101 transfer in from General Fund 35,000 10,000 30,000 50,000 60,000 Total Subregion 1 Fund 48,442 16,298 24,905 73,934 69,400 Measure A Fund Intergovernmental Revenue 3303 Measure A 93,963 - 238,099 90,000 100,000 Interest 3601 Interest on Investments 503 153 42 1,820 1,900 Total Measure A Fund 94,466 153 238,141 91,820 101,900 C-7 41 Statement Of Revenues - All Funds City of Rancho Palos Verdes | Adopted Budget 2023-2024 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Abalone Cove Sewer Maintenance Fund Other Taxes 3102 Assessments 52,379 51,980 56,176 58,500 59,600 Interest 3601 Interest on Investments 7,676 2,045 2,318 1,420 1,500 3606 Investment Fair Value Adjustment - - (3,270) 3,270 - Transfers In 9101 transfer in from General Fund - - - - 70,000 Total Abalone Cove Sewer Maint. Fund 60,055 54,025 55,224 63,190 131,100 Donor Restricted Donations Fund Interest 3601 Interest on Investments 13,660 6,495 10,650 10,000 10,600 3606 Investment Fair Value Adjustment - - (16,262) 16,262 - Other Revenue 5411-3901 donations - Sales - Amphitheater plaques 7,500 10,500 31,000 38,000 30,000 5414-3901 donations - Commemorative Benches 2,000 6,000 3,000 6,000 6,000 5415-3901 donations - General - pvic exhibit 400 200 300 600 300 5417-3901 donations - - 25 - - Total Donor Restricted Donations Fund 23,560 23,195 28,713 70,862 46,900 Community Development Block Grant Fund Intergovernmental Revenue 3301 Grant Income 226,364 25,556 153,987 350,000 150,000 3301 Federal Grant - 3,008 2,646 1,230 - Total CDBG Fund 226,364 28,564 156,633 351,230 150,000 Capital Improvement Fund Interest 3601 Interest on Investments 471,473 214,382 447,965 472,130 502,000 3606 Investment Fair Value Adjustment - - (748,704) 748,704 - Other Revenue 3999 Misc Revenues - 757 - - - Transfers In 9101 transfer in from General Fund 2,410,752 1,720,819 4,699,515 7,293,800 4,421,000 C-8 City of Rancho Palos Verdes | Adopted Budget 2023-2024 Statement Of Revenues - All Funds 42 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget 9331 transfer in from Federal Grants 98,300 - - - - Total Transfers In 2,509,052 1,720,819 4,699,515 7,293,800 4,421,000 Total Capital Improvement Fund 2,980,525 1,935,958 4,398,776 8,514,634 4,923,000 State Grants Intergovernmental Revenue 3302 State Grant 450,162 7,264 241,441 1,668,900 - 8830-3302 peninsula-Wide Safe Routes 176,017 37,586 - - - Interest 3601 Interest on Investments - - 121 650 690 Total State Grants Fund 626,179 44,850 241,562 1,669,550 690 ARPA Intergovernmental Revenue 3301 Federal Grant - - 1,803,693 4,967,429 - Interest 3601 Interest on Investments - - 63,088 78,070 83,000 3606 Investment Fair Value Adjustment - - (93,085) 93,085 - Total ARPA - - 1,773,696 5,138,584 83,000 Quimby Fund Charges for Service 3907 Quimby developer Fee - 23,652 - - - Interest 3601 Interest on Investments 23,090 9,861 10,723 7,200 7,600 3606 Investment Fair Value Adjustment - - (14,831) 14,831 - Total Quimby Fund 23,090 33,513 (4,108) 22,031 7,600 City Low-Mod Income Housing Fund Interest 3601 Interest on Investments 3,237 1,845 3,748 3,810 4,000 3606 Investment Fair Value Adjustment - - (5,783) 5,783 - Property Tax 3108 Redevelopment property tax trust 28,624 59,765 30,880 56,700 35,000 Total City Low-Mod Income Housing Fund 31,861 61,610 28,845 66,293 39,000C-9 43 Statement Of Revenues - All Funds City of Rancho Palos Verdes | Adopted Budget 2023-2024 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Affordable Housing Projects Fund Interest 3601 Interest on Investments 14,846 7,143 11,704 10,450 11,000 3606 Investment Fair Value Adjustment - - (17,711) 17,711 - Other Revenues 3999 Misc Revenues 2,444 12,441 - - - Total Affordable Housing Projects Fund 17,290 19,584 (6,007) 28,161 11,000 Environmental Excise Tax (EET) Charges for Service 3907 eet developer Fee 114,694 3,902 15,608 23,400 23,500 Interest 3601 Interest on Investments 7,438 2,275 1,999 1,270 1,300 3606 Investment Fair Value Adjustment - - (2,633) 2,633 - Total EET Fund 122,132 6,177 14,974 27,303 24,800 TDA Article 3 - SB 821 Bikeway Fund Intergovernmental Revenue 3303 tdA Article 3 - SB 821 - 511 28,038 29,100 48,500 Total TDA Article 3 Fund - 511 28,038 29,100 48,500 Measure W Fund Interest 3601 Interest on Investments - - 9,543 9,740 10,300 3606 Investment Fair Value Adjustment - - (16,298) 16,298 - Intergovernmental Revenue 3303 Local Grants - 679,381 681,800 685,400 680,000 Total Measure W Fund - 679,381 675,045 711,438 690,300 Equipment Replacement Fund Charges for Service 3803 Interfund Charges 84,600 93,600 308,400 292,200 246,900 3999 Miscellaneous Revenue 450 - - - - Total Charges for Service 85,050 93,600 308,400 292,200 246,900C-10 City of Rancho Palos Verdes | Adopted Budget 2023-2024 Statement Of Revenues - All Funds 44 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEWFY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Interest 3601 Interest on Investments 46,686 21,365 37,254 35,780 38,000 3606 Investment Fair Value Adjustment -- (57,370)57,370 - Total Equipment Replacement Fund 131,736 114,965 288,284 385,350 284,900 Employee Pension Service Fund 9101 transfer in from General Fund -- 640,000 400,000 - Interest 3601 Interest on Investments --5,442 9,170 9,700 3606 Investment Fair Value Adjustment -- (10,834)10,834 - Total Employee Pension Fund -- 634,608 420,004 9,700 Total All Other Funds 10,221,626 8,685,103 15,141,831 24,311,066 13,944,770 Improvement Authority IA - Portuguese Bend Maintenance 3601 other taxes & Misc. Revenues 2,136 425 257 620 650 9101 transfers In 55,000 20,000 55,000 15,000 15,000 3606 Investment Fair Value Adjustment --(905)905 - Total IA - Portuguese Bend Maintenance 57,136 20,425 54,352 16,525 15,650 IA - Abalone Cove Maintenance 3601 other taxes & Misc. Revenues 26,260 6,309 4,242 9,390 9,900 9101 transfers In 50,000 ---- 3606 Investment Fair Value Adjustment -- (13,995)13,995 - Total IA - Abalone Cove Maintenance 76,260 6,309 (9,753)23,385 9,900 Total Improvement Authority 133,396 26,734 44,599 39,910 25,550 Total City Revenues 39,854,029 39,002,419 51,407,873 62,329,776 52,765,120 C-11 City of Rancho Palos Verdes | Adopted Budget 2023-2024 Statement Of Expenditures - All Funds 50 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEWStatement Of Expenditures - All Funds FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Transfers Out 2,550,752 1,750,819 5,424,515 7,758,800 4,566,000 City Council 89,739 84,681 96,177 106,900 118,900 Legal Services 1,133,168 886,407 915,444 910,000 950,000 Public Safety Sheriff 6,683,678 6,970,901 6,985,320 7,140,000 7,872,000 Special programs 651,804 263,050 307,974 493,900 377,000 Total Public Safety 7,335,482 7,233,951 7,293,294 7,633,900 8,249,000 City Administration City Manager 645,233 628,592 733,899 789,400 1,203,500 City Clerk 722,454 401,928 417,858 593,800 601,900 Community outreach 63,415 82,978 75,827 49,100 89,300 emergency preparedness 24,563 16,829 47,069 66,000 219,900 emergency operation Center 404,281 322,056 172,927 152,900 - RpVtV 182,625 184,775 183,236 135,800 230,100 personnel 364,038 309,885 371,026 428,300 446,000 Information technology - data 975,570 979,005 925,095 1,043,100 1,089,600 Information technology - Voice 103,792 117,369 101,672 123,500 151,000 Total City Administration 3,485,971 3,043,417 3,028,609 3,381,900 4,031,300 Finance Finance 1,634,788 1,458,001 1,280,029 1,420,700 1,564,400 Total Finance 1,634,788 1,458,001 1,280,029 1,420,700 1,564,400 Non-Department Non-departmental 1,204,534 1,862,324 2,412,681 3,563,100 2,327,800 Total Non-Department 1,204,534 1,862,324 2,412,681 3,563,100 2,327,800 Community Development Administration 584,244 528,887 670,354 681,700 760,900 planning 774,259 616,938 815,105 1,098,600 1,407,900 Building & Safety 678,640 598,490 656,332 926,500 1,074,200 Code enforcement 222,319 208,263 268,139 273,800 293,300 View Restoration 384,590 385,703 369,954 395,500 401,300 Geology 111,100 144,068 163,336 160,000 160,000 Animal Control 102,083 94,282 150,611 210,000 230,000 Total Community Development 2,857,235 2,576,631 3,093,831 3,746,100 4,327,600 Public Works public Works Administration 2,092,585 1,934,346 2,075,027 2,305,500 3,309,800 traffic Management 276,284 120,558 361,666 416,900 261,400 Storm Water Quality 479,833 472,168 15,942 91,000 312,400 Building Maintenance 448,644 477,391 502,449 653,400 717,700C-12 51 Statement Of Expenditures - All Funds City of Rancho Palos Verdes | Adopted Budget 2023-2024 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget parks Maintenance 726,663 618,404 826,179 881,200 1,065,000 Street Landscape Maintenance 147,382 232,493 346,595 702,000 782,000 trails & open Space Maintenance 421,325 306,370 407,139 456,400 481,000 Vehicle Maintenance 37,905 46,219 60,621 63,000 72,500 Sewer Maintenance 42,278 22,830 13,400 35,000 75,000 Fuel Modification 1,041,109 415,389 325,086 665,300 795,000 Total Public Works 5,714,008 4,646,168 4,934,104 6,269,700 7,871,800 Recreation And Parks Recreation Administration 964,028 990,768 1,077,321 1,240,000 1,264,400 other Recreational Facilities 10,251 2,569 2,009 2,800 115,100 Fred Hesse Jr. park 180,952 174,918 160,201 168,500 217,200 Robert e. Ryan park 81,168 109,586 103,011 110,800 78,100 Ladera Linda Community Center 67,534 74,828 100,953 62,700 233,900 Abalone Cove Shoreline park 129,636 137,950 106,752 171,000 148,700 Special events And programs 160,550 141,020 297,916 391,700 286,000 point Vicente Interpretive Center 457,537 427,698 464,773 543,100 433,700 Reach 20,789 43,008 75,283 80,100 82,600 Support Services 21,195 23,310 22,770 25,100 - City Run Sports & Activities 3,165 400 - 1,200 3,000 Contract Classes 33,717 1,890 72,212 98,000 148,900 Volunteer program 5,322 4,700 4,927 5,000 5,000 park Rangers 145,827 272,887 296,193 388,700 513,600 eastview park 52,684 65,572 74,371 65,100 39,200 open Space Management 198,816 179,058 203,160 144,500 478,300 parking enforcement - - 87,773 55,300 25,000 NCCp - 47,284 - - - Total Recreation & Parks 2,533,171 2,697,446 3,149,625 3,553,600 4,072,700 Total General Fund 28,538,848 26,239,845 31,628,309 38,344,700 38,079,500 All Other Funds State Gas Tax Street pavement Maintenance 128,232 197,753 203,129 265,000 980,900 Street Landscape Maintenance 634,391 735,320 607,476 715,100 605,000 traffic Signal Maintenance 12,506 23,903 9,138 - - portuguese Bend Rd. Maintenance - 15,438 - - - Fuel Modification 24,750 - - - - Roadway Asset Management program (CIp)285,517 1,626,932 119,775 348,789 1,000,000 Total State Gas Tax 1,085,396 2,599,346 939,518 1,328,889 2,585,900 El Prado - - - 500 500 1911 Act C-13 City of Rancho Palos Verdes | Adopted Budget 2023-2024 Statement Of Expenditures - All Funds 52 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Street Lights Maintenance 461,726 460,560 371,038 110,000 155,000 Capital Improvements 509,250 368,410 15,752 - - Total 1911 Act 970,976 828,970 386,790 110,000 155,000 Waste Reduction operating expenses 223,785 224,461 318,983 300,500 298,000 Total Waste Reduction 223,785 224,461 318,983 300,500 298,000 Air Quality operating expenses - 55,839 54,000 140,000 - Total Air Quality - 55,839 54,000 140,000 - Prop “C” Transportation traffic Maintenance 3,702 - - - - Street Maintenance (CIp)695,104 759,078 739,950 1,434,095 1,050,000 Total Proposition “C”698,806 759,078 739,950 1,434,095 1,050,000 Prop “A” Transportation dial-A-Ride 777,958 874,187 777,197 776,800 854,227 Capital projects 458,736 463,842 - - - Total Proposition “A”1,236,694 1,338,029 777,197 776,800 854,227 Public Safety transfers out 175,000 130,000 160,000 250,000 170,000 Total Public Safety 175,000 130,000 160,000 250,000 170,000 Measure R traffic Management - - 100,044 - 125,000 Capital projects 72,167 427,417 109,281 210,848 560,000 Total Measure R 72,167 427,417 209,325 210,848 685,000 Measure M Repairs & Maintenance 525,317 414,190 536,921 776,000 901,400 Capital projects - - - 162,582 455,000 Total Measure M 525,317 414,190 536,921 938,582 1,356,400 Habitat Restoration 152,745 153,618 305,793 206,500 179,000 Subregion 1 42,530 42,116 44,703 28,000 30,000 Measure A transfers out 100,000 - 150,000 50,000 100,000 Total Measure A 100,000 - 150,000 50,000 100,000 Abalone Cove Sewer Maintenance 138,010 94,903 119,142 207,500 173,500 Ginsburg Cultural Arts Building 1,045 - - - - Donor Restricted Donations C-14 53 Statement Of Expenditures - All Funds City of Rancho Palos Verdes | Adopted Budget 2023-2024 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget operating expenses 16,770 26,608 13,770 13,500 18,000 Total Donor Restricted Donations 16,770 26,608 13,770 13,500 18,000 Community Development Block Grant 211,806 29,908 158,529 350,000 150,000 Capital Improvement Program Fund Administration 35,213 14,274 - - - Street Improvements 3,628,857 311,557 30,101 1,120,407 2,292,400 parks, trails & open Space Improvements 78,909 396,073 - 175,371 220,000 Sewer Improvements 34,639 87,803 204,279 45,794 200,000 Building Improvements 36,748 33,301 255,216 9,504,232 2,230,000 Storm Water Quality Improvements 460,225 46,709 1,475 400,120 1,700,500 Landslide Improvements 378,318 - 183,726 609,785 1,030,000 Total Capital Improvement 4,652,909 889,717 674,797 11,855,709 7,672,900 Federal Grants Capital Improvements - - - - 2,479,500 transfers out 98,300 - - - - Miscellaneous expense 14 - - - - Total Federal Grants 98,314 - - - 2,479,500 State Grants professional & technical - - 89,053 220,938 210,000 Capital Improvements 277,373 49,207 - - 145,000 Total State Grants 277,373 49,207 89,053 220,938 355,000 Federal Grants - ARPA Capital Improvements - - 1,803,693 3,026,128 3,212,600 Total Federal Grants - - 1,803,693 3,026,128 3,212,600 QUIMBY Capital Improvements 545,813 130,863 422,174 543,026 - Total Quimby 545,813 130,863 422,174 543,026 - Environmental Excise Tax (EET) Street Landscape Maintenance 286,881 143,635 120,090 64,000 - Total Environmental Excise Tax (EET)286,881 143,635 120,090 64,000 - TDA Article 3 - SB 821 Bikeway Fund operating expenses - 511 28,038 - - Total TDA Article 3 - SB 821 Bikeway - 511 28,038 - - Measure W operating expenses - 187,954 465,213 407,500 363,300 Capital Improvements - - - - 245,000 Total Measure W - 187,954 465,213 407,500 608,300 Equipment Replacement 360,246 198,644 127,124 - 621,000 Employee Pension Fund - - - 242,000 135,700 C-15 City of Rancho Palos Verdes | Adopted Budget 2023-2024 Statement Of Expenditures - All Funds 54 GENERAL FUND SUMMARYBUDGET PROGRAMSAPPENDIX CITY FUNDS SUMMARYBUDGET OVERVIEW FY19-20 Actuals FY20-21 Actuals FY21-22 Actuals FY22-23 YE Estimate FY23-24 Adopted Budget Total All Other Funds 11,872,583 8,725,014 8,644,803 22,705,015 22,890,527 Improvement Authority IA - Portuguese Bend Maintenance prof/tech Services 50,437 37,515 38,386 - - Repair & Maintenance Services 2,228 6,036 5,158 6,000 45,000 electricity 1,378 1,500 2,552 - - Total Portuguese Bend Maintenance 54,043 45,051 46,096 6,000 45,000 IA - Abalone Cove Maintenance prof/tech Services 9,303 15,205 17,828 - - Repair & Maintenance Services 2,228 3,086 5,158 5,000 10,000 electricity 8,977 10,404 12,750 - - - - - - - - - - - - - - - - - - - - - - Total Abalone Cove Maintenance 20,508 28,695 35,736 5,000 10,000 Total Improvement Authority 74,551 73,746 81,832 11,000 55,000 Total City Expenditures 40,485,982 35,038,605 40,354,944 61,060,715 61,025,027 C-16 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 8200 Series Abalone Cove Santitary Sewer System Projects 330 (CIP Fund)19,250$ 200,000$ 3,630,000$ 1,090,000$ -$ -$ 8300 Series Landslide Improvement Projects 330 (CIP Fund)111,425$ -$ -$ -$ 275,000$ 2,445,000$ 215 (Proposition C)N/A - ongoing 1,050,000$ 1,100,000$ 1,150,000$ 575,000$ TBD 330 (CIP Fund)N/A - ongoing 320,000$ 350,000$ 360,000$ 1,000,000$ TBD 220 (Measure R)296,192$ -$ -$ -$ -$ -$ 330 (CIP Fund)711,194$ 710,000$ 1,770,000$ 5,140,000$ 3,463,000$ -$ 331 (Federal Grants)-$ 500,000$ 4,000,000$ 10,400,000$ 7,100,000$ -$ 8400 Series Parks, Open Space & Recreation Facilities Projects 330 (CIP Fund)-$ -$ 285,000$ -$ -$ -$ 330 (CIP Fund)12,891,229$ -$ -$ -$ -$ -$ 333 (ARPA Federal Grant)4,173,000$ -$ -$ -$ -$ -$ 334 (Quimby park development)1,705,855$ -$ -$ -$ -$ -$ 330 (CIP Fund)249,000$ 30,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ 75,000$ TBD TBD TBD -$ 330 (CIP Fund)-$ 115,000$ -$ -$ -$ -$ 333 (ARPA Federal Grant)-$ -$ -$ -$ -$ -$ 8500 Series Building Improvements Projects 330 (CIP Fund)351,103$ 1,025,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ 380,000$ -$ -$ -$ -$ 333 (ARPA Federal Grant)35,600$ 350,000$ -$ -$ -$ -$ 330 (CIP Fund)107,311$ 825,000$ 355,000$ 660,000$ 545,000$ 555,000$ 330 (CIP Fund)-$ -$ 50,000$ 700,000$ -$ -$ 8700 Series Sewer & Storm Drain Improvements Projects 330 (CIP Fund)-$ 500,000$ TBD TBD TBD TBD 330 (CIP Fund)365,727$ -$ -$ -$ 520,000$ TBD 330 (CIP Fund)273,884$ 760,500$ -$ -$ -$ -$ 331 (Federal Grants)-$ 1,939,500$ -$ -$ -$ -$ 330 (CIP Fund)-$ -$ 40,000$ 315,000$ -$ -$ 343 (Measure W - Regional Grant)-$ 245,000$ 5,365,000$ -$ -$ -$ 330 (CIP Fund)-$ 115,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ 325,000$ -$ -$ -$ -$ City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 Palos Verdes Drive South Landslide Repair Program New Civic Center Complex Restroom Improvements and New Office Space at Eastview Park Facilities Asset Management Program Storm Drain Asset Management Program & Master Plan Update Point Vicente Interpretive Center Restroom Improvements 8302 8301 Palos Verdes Drive South Realignment - East End 8202 Abalone Cove Sanitary Sewer Rehabilitation Program 8405 8304 Portuguese Bend Landslide Remediation Fence Program8404 8508 Ladera Linda Community Park 8715 Stormwater Drainage Improvements - Palos Verdes Drive South at Peppertree Drive Park Playground Improvements 85Pot1 8509 8503 8426 8420 Palos Verdes Nature Preserve Signs Program 8417 Point Vicente Interpretive Center "Bubbles" Statue Marquee Sign 87New2 8708 Altamira Canyon Improvements 8701 8721 Storm Drain Improvements at Peacock Ridge Road Multi-Jurisdictional Stormwater Treatment at Torrance Airport 8723 8722 Storm Drain Outlet Improvements at Ocean Crest Drive Lift Station Improvements at Lower Point Vicente D-1 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 8800 Series Right-of-Way Improvements Projects 202 (Gas Tax - SB1)170,000$ -$ -$ -$ -$ -$ 220 (Measure R)-$ 175,000$ -$ -$ -$ -$ 330 (CIP Fund)85,000$ -$ -$ -$ -$ -$ 333 (ARPA Federal Grant)-$ 500,000$ -$ -$ -$ -$ 215 (Proposition C)200,000$ -$ -$ -$ -$ -$ 220 (Measure R)74,483$ -$ -$ -$ -$ -$ 221 (Measure M - Grant)471,900$ 455,000$ 3,110,000$ -$ -$ -$ 310 (CDBG)-$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 215 (Proposition C)58,448$ -$ -$ 85,000$ -$ -$ 220 (Measure R)-$ -$ -$ -$ 1,270,000$ -$ 330 (CIP Fund)7,271$ -$ -$ -$ -$ -$ 215 (Proposition C)375,427$ -$ -$ -$ -$ -$ 220 (Measure R)-$ -$ 430,000$ -$ -$ -$ 330 (CIP Fund)211,391$ 537,400$ -$ -$ -$ -$ 333 (ARPA Federal Grant)135,000$ 2,362,600$ -$ -$ -$ -$ 220 (Measure R)115,096$ -$ -$ -$ -$ -$ 330 (CIP Fund)10,000$ -$ -$ -$ -$ -$ 333 (ARPA Federal Grant)940,000$ -$ -$ -$ -$ -$ 202 (Gas Tax - SB1)198,718$ -$ 195,000$ -$ -$ 215,000$ 330 (CIP Fund)26,850$ -$ 170,000$ TBD TBD TBD 220 (Measure R)-$ 385,000$ 345,000$ -$ -$ -$ 330 (CIP Fund)137,780$ 200,000$ 255,000$ 625,000$ 650,000$ 665,000$ 330 (CIP Fund)-$ -$ 10,100$ -$ -$ -$ 331 (Federal Grants)-$ 40,000$ 959,900$ -$ -$ -$ 330 (CIP Fund)99,929$ 330,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ -$ 416,400$ -$ -$ -$ XXX (Metro - STP-L)-$ 145,000$ 1,473,600$ -$ -$ -$ 330 (CIP Fund)-$ -$ -$ 95,000$ 1,405,000$ -$ 330 (CIP Fund)-$ -$ -$ 210,000$ 4,825,000$ -$ 330 (CIP Fund)-$ 1,225,000$ 1,120,000$ 1,375,000$ 1,450,000$ 2,180,000$ 202 (Gas Tax - SB1)-$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 220 (Measure R)-$ -$ 60,000$ 805,000$ -$ -$ 330 (CIP Fund)-$ -$ 40,000$ 540,000$ -$ -$ 220 (Measure R)-$ -$ -$ -$ 60,000$ 835,000$ 330 (CIP Fund)-$ -$ -$ -$ 65,000$ 905,000$ 24,608,063$ 16,970,000$ 26,680,000$ 24,700,000$ 24,353,000$ 8,950,000$ 8845 Traffic Signal at Palos Verdes Drive South and Palos Verdes Drive East8837 88New4 Roadway Asset Management Program - Crestridge Road 8853 8846 8847 Traffic Calming Program - Palos Verdes Nature Preserve Parking Traffic Calming Program - (Citywide) 8856 88LY2 Roadway Asset Management Program - Indian Peak Road 88New5 Palos Verdes Drive East Guardrail Improvements Curb Ramp Improvements Program Roadway Asset Management Program - Triennial Update 8843 Roadway Asset Management Program - Silver Spur Road (North of Hawthorne Boulevard) Western Avenue Traffic Flow Improvements Western Avenue Beautification (long term) 8828 Intersection Improvements along Palos Verdes Drive South 8840 8844 88New2 Roadway Asset Management Program - Palos Verdes Drive East Roadway Asset Management Program - Highridge Road 88LY4 8855 Roadway Asset Management Program - Palos Verdes Drive South 88New3 Roadway Asset Management Program - Residential Streets Roadway Asset Management Program - Montemalaga Drive Roadway Asset Management Program - Crest Road 8810 8808 Roadway Asset Management Program - Crenshaw Boulevard Retaining Wall Repairs at 3001 Crest Road 8809 D-2 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 Funding Summary 202 (Gas Tax)-$ -$ -$ -$ -$ -$ 202 (Gas Tax - SB1)368,718$ 1,000,000$ 1,195,000$ 1,000,000$ 1,000,000$ 1,215,000$ 211 (1911 Act)-$ -$ -$ -$ -$ -$ 215 (Proposition C)633,875$ 1,050,000$ 1,100,000$ 1,235,000$ 575,000$ -$ 220 (Measure R)485,771$ 560,000$ 835,000$ 805,000$ 1,330,000$ 835,000$ 221 (Measure M)-$ -$ -$ -$ -$ -$ 221 (Measure M - Grant)471,900$ 455,000$ 3,110,000$ -$ -$ -$ 225 (Ab Cove sewer maint.)-$ -$ -$ -$ -$ -$ 310 (CDBG)-$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 330 (CIP Fund)15,658,344$ 7,672,900$ 8,491,500$ 11,110,000$ 14,198,000$ 6,750,000$ 331 (Federal Grants)-$ 2,479,500$ 4,959,900$ 10,400,000$ 7,100,000$ -$ XXX (Metro - STP-L)-$ 145,000$ 1,473,600$ -$ -$ -$ 333 (ARPA Federal Grant)5,283,600$ 3,212,600$ -$ -$ -$ -$ 334 (Quimby park development)1,705,855$ -$ -$ -$ -$ -$ 340 (Bicycle & Ped access)-$ -$ -$ -$ -$ -$ 343 (Measure W)-$ -$ -$ -$ -$ -$ 343 (Measure W - Regional Grant)-$ 245,000$ 5,365,000$ -$ -$ -$ 24,608,063$ 16,970,000$ 26,680,000$ 24,700,000$ 24,353,000$ 8,950,000$ D-3 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 Wants/Needs List (Projects not recommended for funding in Fiscal Years 2022-23 through 2026-27) 8200 Series Abalone Cove Santitary Sewer System Projects 8300 Series Landslide Improvement Projects 8400 Series Parks, Open Space & Recreation Facilities Projects 8411 Lower Point Vicente Parking Lot Lighting Improvements 211 (1911 Act)-$ 8418 Hesse Park Parking Lot & Lighting Improvements 330 (CIP Fund)-$ 8421 Lower Point Vicente Park Improvements 330 (CIP Fund)-$ 84LY1 Lower Hesse Park Improvements 330 (CIP Fund)-$ 8500 Series Building Improvements Projects 8700 Series Sewer & Storm Drain Improvements Projects 8711 Stormwater Drainage Improvements at Bayend Drive 330 (CIP Fund)-$ 8714 Stormwater Drainage Improvements from Crest Road to Crestridge Canyon 330 (CIP Fund)-$ 8718 Stormwater Drainage Improvements at Corsini Place 330 (CIP Fund)-$ 87New1 Stormwater Drainage Improvements - Hawthorne Boulevard at Hawkhurst Drive 330 (CIP Fund)-$ 8800 Series Right-of-Way Improvements Projects 8811 Aesthetic Improvements Program - Arterial Walls and Fences (City- wide)330 (CIP Fund)-$ 8839 Palos Verdes Drive East Widening and Path Improvements near Bronco Drive 330 (CIP Fund)-$ 8851 Arterial Roadway Beautification Program 330 (CIP Fund)-$ 8854 Palos Verdes Drive East Traffic improvements Near Bronco Drive 215 (Proposition C)-$ D-4 ` Project Code Project Name Fund Committed as of 3/31/2023 Proposed for Fiscal Year 2023- 24 Proposed for Fiscal Year 2024- 25 Proposed for Fiscal Year 2025- 26 Proposed for Fiscal Year 2026- 27 Proposed for Fiscal Year 2027- 28 City of Rancho Palos Verdes Public Works Department Proposed Five Year CIP Budget for Fiscal Years 2023-24, 2024-25, 2025-26 2026-27 and 2027-28 COMPLETED PROJECTS 8200 Series Abalone Cove Santitary Sewer System Projects 8300 Series Landslide Improvement Projects 8302 Palos Verdes Drive South Landslide Repair Program 8400 Series Parks, Open Space & Recreation Facilities Projects 8423 Nature Preserve Gate for the Rattlesnake Trail 8424 Park Monument Signs 8500 Series Building Improvements Projects 8700 Series Sewer & Storm Drain Improvements Projects 8800 Series Right-of-Way Improvements Projects 8810 Curb Ramp Improvements Program 8848 Roadway Asset Management Program - Silver Spur Road (South of Hawthorne Boulevard) 8852 City Entrance Roadway Monument Signs D-5 Revenue Type Recurring One-time Total Property Tax 17,149,500$ $-17,149,500$ Transient Occupancy Tax 6,927,900 -6,927,900 Sales Tax 2,855,800 -2,855,800 Franchise taxes 2,200,000 -2,200,000 Utility Users Tax 2,482,200 -2,482,200 Permits & Fees 3,171,500 -3,171,500 Other Taxes & Misc. Revenues 3,702,900 35,000 3,737,900 TOTAL REVENUES $ 38,489,800 $ 35,000 $ 38,524,800 Expenditure by Program Recurring One-time Total City Council 118,900$ $-118,900$ City Administration 3,990,300 41,000 4,031,300 City Attorney 950,000 -950,000 Public Safety 8,249,000 -8,249,000 Finance 1,564,400 -1,564,400 Community Development 3,984,600 343,000 4,327,600 Public Works 7,613,800 258,000 7,871,800 Recreation & Parks 4,061,700 11,000 4,072,700 Non-department 2,177,800 150,000 2,327,800 TOTAL EXPENDITURES $ 32,710,500 $ 803,000 $ 33,513,500 STRUCTURAL SURPLUS/(DEFICIT) 5,779,300 (768,000) 5,011,300 Transfers in - 270,000 270,000 Transfers out 4,566,000 -4,566,000 UNALLOCATED BALANCE 1,213,300$ (498,000)$ 715,300$ FUND 101 - GENERAL FUND FY 2023-24 RECURRING VS. ONE-TIME REVENUES AND EXPENDITURES E-1