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CC SR 20230620 04 - FY 2023-24 Financial ModelCITY COUNCIL AGENDA REPORT MEETING DATE: 06/20/2023 AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to receive file the 2024 Financial Model. RECOMMENDED COUNCIL ACTION: (1) Receive and file the 2024 Financial Model. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Jason Loya, Senior Administrative Analyst REVIEWED BY: Vina Ramos, Deputy Director of Finance Brittany Ruiz, Interim Director of Finance APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A.10-Year Fund Balance Summary and Details (page A-1) B.Budget Assumptions (page B-1) C.Major Funds: General Fund and Capital Infrastructure Program (CIP) Fund (page C-1) BACKGROUND: The 10-Year Financial Model is administered by the City’s Finance Department and reviewed during the annual budget cycle in accordance with City Council Policy No. 18. Each iteration of the model integrates historic and current year data with the latest economic assumptions to produce a long-term forecast of revenues, expenditures, and fund balances. In addition to establishing a baseline forecast, the model is relied upon to support deliberations among decisionmakers and to validate the fiscal impact of various programmatic or financial alternatives under consideration. Since implementation, the model has become increasingly beneficial to the budget process due to its various enhancements over time. In Fiscal Year 2021-22, the original Five-Year Financial Model was expanded to 10 years and renamed accordingly at the request of the City Council. A post-pandemic economy also prompted the addition of a sensitivity analysis during the same span of time. Each improvement or additional 1 analysis, as requested during the Budget Workshop, it is integrated into the model, and presented for review during the June budget meetings. 2024 Model Format In its latest iteration, the 2024 Financial Model (2024 Model) uses the inputs and assumptions developed during the FY 2023-24 budget cycle. The 2024 Model primarily focuses on the General Fund, illustrates the City’s long-term financial position, and supports the development of a structurally balanced operating budget. Special Revenue Funds and budgetary figures from the Five-Year Capital Improvement Program are also included to provide a complete picture of the City’s long-term financial outlook. The 2024 Model’s baseline revenue and expenditure forecasts are established by the FY 2023-24 Draft Budget. Additional data within the model includes: ► Historic actuals and year-end fund balances for all City funds ► Key assumptions and various economic input factors ► FY 2022-23 year-end estimates and projected fund balances as of June 30, 2023 ► A 10-year overview from FY 2022-23 to FY 2031-32 Major funds included in the 2024 Model are separated as follows: ► General Fund – The General Fund balance is separated by the 50% reserve policy and the unrestricted balance. ► Funds restricted by City Council action – The balances of the Capital Infrastructure Program Fund (CIP), Employee Pension Service Fund, and Equipment Replacement Fund are restricted by City Council action for a specific purpose. The funds were initiated with transfers from the General Fund and may be transferred back to General Fund or used for other purposes upon City Council action. ► Funds restricted by law or external agencies – The balances of these funds are restricted by law or external agencies, such as the federal government, State of California, or Los Angeles County. This funding can only be used for the purpose outlined by the terms and conditions set by legislation and voter ballot measures. Lastly, the 2024 Model is organized and presented using the following reports: ► 10-Year Fund Summary and Details (page A-1) ► Budget Assumptions (page B-1) ► Major Funds: General Fund and CIP Fund (page C-1) In addition to the attached reports, an overview of the process to develop the 2024 Model and analysis of the 10-year forecast is detailed in the discussion section below. 2 DISCUSSION: 2024 Model Development Process At the start of budget season, Finance Staff updated the 2024 Model to prepare for the General Fund Budget Workshop. City revenues and expenditures reported through mid - year were uploaded into the model to analyze actual performance against the revised budget. Staff conducted a thorough review of historic and year-to-date performance indicators alongside industry trends and economic forecasts to produce the General Fund budget assumptions, FY 2022-23 year-end estimates, and FY 2023-24 Proposed Budget. Following the preliminary budget meeting, actuals through March and changes to the FY 2022-23 year-end estimates and FY 2023-24 Preliminary Budget as affirmed by the City Council were added to the model. Updates also included the FY 2023-24 Capital Improvement Program and proposed budget through FY 2027-28. As a result of this process, the FY 2023-24 Draft Budget was developed and forms the 2024 Model’s baseline forecast and long-term outlook for all City funds. Budget Assumptions The budget assumptions listed in Table 1 indicate the expected long-term growth rates from FY 2024-25 through FY 2031-32. As illustrated, rates determined by economic and operating indicators are used as inputs for each major category of revenue and expenditure to be forecasted. No reportable changes have been made to the 2024 Model’s assumption rates since being presented at the Budget Workshop. Table 1. 2024 Economic Model Input Factors 3 General Fund Revenues Property Tax Property Tax represents the largest and most stable revenue source in the General Fund. In FY 2023-24, total property tax revenues are budgeted at $17.1 million, an increase of $773,700, or 5%, above year-end estimates. The FY 2023-24 projections are largely influenced by assessed property values adjusted by the maximum allowable 2% Consumer Price Index (CPI) and residential home sales activity recorded in 2022. Additional growth factors include transfers of ownership and Proposition 8 value recaptures. A declining trend in residential home sales and flattening median sale prices in 2023 has led to a more conservative growth rate of 2.9% in FY 2024-25 and 3.9% in FY 2025-26. The remaining years are assumed to grow at 4% based on the historical average. Staff will review property tax revenue projections annually and as more current data becomes available. Transient Occupancy Tax The latest indicators suggest that growth may extend further into the year-end and gradually decelerate to moderate levels through FY 2023-24. However, the increased demand for leisure and business travel prompted Terranea Resort to increase hotel rates in 2023. Current demand has also impacted Terranea’s ability, and the necessity, to negotiate higher rates for group room reservations that are determined via contract. To account for growing demand while maintaining a conservative outlook, total transient occupancy tax (TOT) revenues are budgeted at $6.9 million in FY 2023-24 and remain flat compared to the year-end estimate. As the industry rebounds and consumer spending begins to plateau, the forecast assumption for TOT is set to the traditional rate of 0.5%. Sales Tax The latest statewide forecast suggests that the growth rate will decline from 4% in the current fiscal year to 0.5% in FY 2023-24. Considering this decline, sales and use tax revenues are budgeted at $2.9 million, a slight increase of $11,400, or 0.4% compared to estimates at year-end. With mixed conclusions and indicators regarding the economic outlook, the forecast assumptions gradually increase by roughly 0.5% for the next three years and return to 2.1% to realign with historic actuals over the remaining period. Permits and Fees The nearly $3.2 million budgeted for Permits and Fees in FY 2023-24 represents a 7% decrease compared to year-end estimates. A roughly $254,000 decline in revenues reflects the anticipated reduction in backlogged construction and permitting activities experienced during the closures in 2020. On May 2, 2023, the City Council also opted to forego a CPI adjusted increase and approved the Master Fee Schedule as recommended. To that end, future growth is assumed to rise by 1% year-over-year as traditionally observed in this revenue source. 4 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. In FY 2023-24, franchise tax revenues are slated to increase by just over 2% above year- end estimates for a total budget of $2.2 million. Recent growth is associated with higher- than-normal rate adjustments based on CPI. Over the long term, however, revenues are projected to increase by 1% annually to maintain a more conservative outlook. Utility Users Tax (UUT) UUT revenues are generated by the use of electricity, gas, and water services available within the City. The 2024 Model uses a 0.5% assumption rate to reflect stable growth over the long-term. However, this revenue source is also sensitive to external factors including utility consumption rates, weather conditions, and price fluctuations which often impact year-over-year revenue growth. In accordance with Section 3.30.190 of the Rancho Palos Verdes Municipal Code (RPVMC), the City Manager shall annually submit an analysis of revenues derived from UUT to the City Council to determine if a modification to the rate is necessary or if the tax is unnecessary based on needs of the City. The City Council approved continuing the 3% rate for UUT in FY 2023-24 at the Budget Workshop. In summary, FY 2023-24 General Fund operating revenues, including transfers, are projected to reach $38.8 million. Chart 1 below illustrates the allocation of major revenues sources, excluding transfers. Chart 1: FY 2023-24 General Fund Revenues (excluding transfers) 5 General Fund Expenditures Personnel Costs Salaries and benefits for City Staff, including vacancies, make up approximately 41% of General Fund operating expenditures. 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. Thus, the 2024 Model utilizes assumptions based on the current language of the MOU. Per the City’s TA with RPVEA, the annual cost-of-living adjustment (COLA) is estimated at 3%, which is the maximum percentage based on the annual CPI for All Urban Consumers (CPI-U) at the end of March each fiscal year. The City Council will consider approving the final RPVEA agreement as a separate agenda item at tonight’s meeting. Additionally, employees are eligible to receive an annual merit increase based on performance evaluations. The performance-based merit increases range from 1% to 6% per the City’s MOU with RPVEA effective July 1, 2023. To account for this range, the budget assumption for merit increases uses an estimated average of 4.5%. Combined, personnel costs including salaries and benefits are forecasted to grow by 5% year-over- year through FY 2031-32. 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. The outcomes from this process will be incorporated in the financial model once available, which will likely occur in the first quarter of FY 2023-24. Pension The City’s employee pension plan includes three tiers of benefits based on local and state pension reform. Pension costs are broken down into two distinct categories, Normal Cost and Unfunded Accrued Liability (UAL). Normal Cost The California Public Employees' Retirement System (CalPERS) sets the employer normal cost contribution rates for all participating employers. This category is calculated based on current staff, salaries, and tier placement. The estimated normal cost rate through FY 2028-29, based on 2021 Annual Valuation Report (AVR), is listed in Table 2 on the following page. 6 Table 2. CalPERS Projected Future Employer Contributions (Assumes 6.8% Return) Normal Cost Rate Plan Type 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Tier 1 14.1% 14.1% 14.1% 14.1% 14.1% 14.1% Tier 2 10.1% 10.1% 10.1% 10.1% 10.1% 10.1% Tier 3 7.7% 7.7% 7.7% 7.7% 7.7% 7.7% Additionally, Table 3 provides a 10-year overview of the employer normal cost included in the 2024 Model. The model uses a 4% growth rate to forecast FY 2024 -25 and beyond. Table 3. 2024 Model - Projected Future Employer Contributions (in dollars) Normal Cost Rate - All Plans 2022-23 2023-24 2024-25 2025-26 2026-27 646,400 884,900 712,248 740,738 770,368 2027-28 2028-29 2029-30 2030-31 2031-32 801,182 833,230 866,559 901,221 937,270 Unfunded Accrued Liability In addition to the normal cost, employer contributions also include required UAL payments based on the amortization schedule for each City pension plan . UAL payments are necessary to fund benefits already earned or accrued for members who are currently receiving benefits, active members, and for members entitled to deferred benefits as of the valuation date. The City’s UAL balance is calculated by subtracting the market value of its pension assets from its plans accrued liability. As of June 30, 2021, the City’s total UAL balance for all three tiers was $10 million, a decrease of 29% from $14 million in the prior year. Like Table 2 above, the projected UAL payment schedule provided in the 2021 AVR uses an investment return rate of 6.8% to calculate future contributions from FY 2024-25 to FY 2028-29 as shown in Table 4. Table 4. CalPERS Projected UAL Payments (Assumes 6.8% Return) Required Contribution Projected Future Employer Contributions Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Tier 1 $1,070,317 $1,064,000 $1,027,000 $988,000 $931,000 $966,000 Tier 2 $0 $0 $0 $0 $0 $0 Tier 3 $0 $0 $0 $0 $0 $0 To provide a more accurate forecast, the 2024 Model does not include the projected UAL payments noted in Table 4. Instead, the model incorporates estimated UAL payments based on a supplemental analysis recommended by the Finance Advisory Committee (FAC) and conducted by the Finance Department. The California Public Employees' Retirement System (CalPERS) reported a -7.5% investment loss in FY 2021-22 which led to a review of the financial impacts likely to be experienced pending the release of the 7 June 30, 2022 AVR. Table 5 illustrates the anticipated UAL payments used to forecast future expenditures in the 2024 model. Table 5. 2024 Model - Projected UAL Payments (Based on 2022 AVR projection) UAL Payments - All Plans 2022-23 2023-24 2024-25 2025-26 2026-27 1,156,000 1,045,700 1,196,000 1,292,000 1,385,000 2027-28 2028-29 2029-30 2030-31 2031-32 1,460,000 1,627,000 1,663,000 1,700,000 1,738,000 Los Angeles County Sheriff’s Contract Each budget cycle, the City Council evaluates existing levels of public safety services provided by Los Angeles County Sheriff’s Department (LASD). Costs of the LASD contract continue to rise annually and are contingent upon external factors such as labor negotiations and rising liability rates. Staff typically accounts for these increases by using a 4% assumption rate to forecast future costs based on historical figures. The 2024 Model captures recent changes in the LASD contract determined in the FY 2023-24 budget cycle and uses an average growth rate of 4% to forecast long-term contract increases. Since FY 2017-18, annual transfers from the General Fund to the CIP Fund are determined by calculating actual TOT revenues from Terranea less the cumulative increase in LASD contract costs. The FY 2022-23 FAC Work Plan identified this method as an item for review based on its impact on the CIP. After FAC’s request to review Work Plan Item No. 10, Staff used the data available in the 2023 Model to present an analysis in December 2022. These findings demonstrated the long-term impact of rising contract costs on TOT revenues, and therefore, its potential impact on transfers to the CIP Fund. While no actions were taken, the FAC has retained this item in the FY 2023-24 Work Plan and continues to note feasibility as an area of concern. Using data in the 2024 Model, Chart 2 provides an updated forecast of contract costs, TOT revenues, and future CIP transfers. Staff will continue working with the FAC to monitor these trends and report any recommendations to the City Council resulting from further review. Continued on the next page 8 Chart 2. 2024 Model – TOT Revenue vs LASD Contract Costs In summary, FY 2023-24 General Fund operating expeditures, including transfers, are projected to reach $38.1 million. Chart 3 illustrates the allocation of major expenditures categories, including transfers. Chart 3. General Fund FY 2023-24 Expenditures (inluding transfers) 9 10-Year Financial Forecast General Fund The following chart presents the 10-year outlook illustrating differences with transfers in and out of the General Fund. As illustrated in Chart 4, the General Fund continues to have a structurally balanced budget with estimated operating revenues exceeding expenditures through FY 2031-32 excluding transfers. Chart 4. 2024 Model - General Fund 10-Year Forecast (Excluding Transfers) The City’s operating fund balance is reduced by transfers to various other funds. The largest transfer is TOT revenue from Terranea to the CIP, as referenced above. Details related to transfers out from the General Fund included in the 2024 Model are summarized in the subsequent section beginning with Table 6. Table 6. FY 2023-24 General Fund Transfers Out FY 2022-23 Year-End Estimate FY 2023-24 Draft Budget Transfer - CIP $7,293,800 $4,421,000 Transfer - Subregion 1 Maintenance $50,000 $60,000 Transfer - IA Portuguese Bend $15,000 $15,000 Transfer - Employee Pension Fund $400,000 $0 Transfer - Abalone Cove Sewer $0 $70,000 Total Transfers Out $7,758,800 $4,566,000 In the FY 2022-23 year-end estimate, transfers-out are projected to increase by $354,100 or 5% over mid-year estimates to account for increased TOT revenue from Terranea. In the FY 2023-24 Draft Budget, the TOT transfer to the CIP Fund is approximately $4.4 million or 12% of the draft budget. 10 Staff received additional information on the scheduled maintenance projects for the Abalone Cove Sewer Fund. Based on the proposed budget of $169,800, the estimated revenues of $62,000 are not adequate to cover the estimated maintenance costs in FY 2023-24. As such, transfers-out from General Fund to the Abalone Cove Sewer Fund is in the amount of $70,000. Additional interfund transfers in FY 2023-24 include $15,000 toward the Improvement Authority for Portuguese Bend and $60,000 to Sub-region One for maintenance. In total, $4.6 million in transfers are allocated for the next fiscal year. Additional Transfers/Surplus Transfers Moreover, 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. The City Council approved Staff’s recommendation to transfer $889,500 to the CIP Fund for the Ladera Linda Community Center loan payment and $291,300 to the Employee Pension Service Fund (EPSF) for pension payments. However, since the approved transfers are funded from the prior year’s unrestricted fund balance, and operating surplus, respectively , they are not included in the adopted totals listed in Table 6. The additional transfers from surplus will be incorporated as an expenditure into a later iteration of the model following adoption of the FY 2023-24 budget. Under current assumptions, Chart 5 illustrates that baseline revenues can support baseline expenditures after including estimated transfers-out through FY 2031-32. Chart 5. 2024 Model – General Fund 10-Year Forecast (Including Transfers) As a point of reference, a similar scenario regarding the prior year’s unrestricted excess reserve resulted in additional transfers of surplus funds totaling $1.3 million in FY 2022 - 11 23. As such, the chart above appears as though expenditures exceed revenues at year - end FY 2022-23. However, this is not a deficit due to the surplus transfer. The estimated General Fund balance as of June 30, 2024, based on the latest updates to revenues, expenditures, and transfers, is approximately $31 million. A 10-year overview of the General Fund Balance from the 2024 Model is provided in Chart 6. According to the long-term outlook under current assumptions, the total fund balance is forecasted to grow year-over-year by an average rate of 4%, ending FY 2031-32 at $43.7 million. Chart 6. 2024 Model - General Fund Balance Forecast General Fund Sensitivity Analysis Following a request from the City Council, a sensitivity analysis was added to the financial model in FY 2021-22 to examine unique scenarios that may impact the long-term financial condition of the City. The following scenario is for reference only and not an actual representation of the current forecast. To test the sensitivity of the General Fund, the 2024 Model uses a 1% sensitivity rate to demonstrate the fiscal impact of a 1% increase to the annual growth rate for expenditures. This scenario also assumes that baseline revenues will remain flat over the same period. The compounding effect of annual 1% cost increases is demonstrated in Chart 7. Continued on the next page 12 Chart 7. Sensitivity Analysis: +1% Expenditure Increase Under this scenario, the analysis suggests that a 1% increase to the annual growth rate could result in expenditures rising above the baseline to $49.4 million in FY 2031-32. This represents a total increase of approximately $4.9 million, or 11% over baseline expenditures which are forecasted to end FY 2031-32 at $44.5 million. Moreover, this analysis is to show the compounding effect of increasing expenditures while revenues remain unchanged. For example, when new expenditures are added to the baseline, such as funding a new program or additional Staff, this becomes a fixed expense and increases the baseline expenditures perpetually. This concept may be helpful for the City when determining whether to take on new expenditures and assessing the additional revenues required to sustain them without using the General Fund reserves. Although the sensitivity analysis is based on assumptions, it is critical to remember that expenditures historically grow at a faster pace than revenues. On an annualized basis, City revenues have grown roughly 2.5% slower than expenditures between FY 2014 -15 and FY 2022-23. Staff will continue utilizing the Financial Model as a tool for monitoring the City’s financial position and offer valuable information to the City Council, supporting their efforts in making sound and long-term financial decisions. Capital Improvement Fund The FY 2023-24 Draft Budget for the CIP totals $16.9 million. After applying the City Council Reserve Policy, the estimated Excess Reserve for all funds in the CIP is $23.6 million. At the CIP workshop, Councilmember Alegria asked for a projected fund balance of the CIP Fund based on the five-year CIP. Staff presented this information to the City Council at the Preliminary Budget meeting based on the preliminary five-year program. To provide a more realistic fund balance projection, Staff applied a blended spend rate of 50% for carryover capital projects and the proposed capital projects in the preliminary five-year program budget. Accordingly, the CIP Fund was projected to have an ending 13 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. The 2024 Model includes the five-year CIP as budgeted and uses additional formulas to calculate revenues and expenditures, as well as the projected fund balance in future years through FY 2031-32. However, given the recent analysis based on historic actuals, the estimated revenues and expenditures shown in the chart below use the same approach as noted above and extend the analysis beyond five years to provide a forecast over the 10-year period. Chart 9. 2024 Model – CIP Revenue and Expenditure Forecast The projected revenues in Chart 9 are solely based on future TOT transfers to the CIP Fund. Estimated transfers reveal a similar trend as reflected in Chart 2: 2024 Model – TOT Revenue vs LASD Contract Costs. According to the 2024 Model, TOT transfers are expected to decline to roughly $2 million by FY 2031 -32 based on the current trajectory. Projected actual expenditures continuing beyond the five-year CIP use a five-year average to estimate project costs from FY 2028-29 to FY 2031-32. As portrayed in the preliminary analysis, the CIP Fund balance is projected to decrease year-over-year through FY 2027-28. By extending the forecast using the 2024 Model, the CIP Fund balance is estimated to reach a deficit in FY 2031-32 based on the current assumptions. This is primarily due to the feasibility concern raised by the FAC noting potential impacts of rising public safety costs and declining TOT revenue transfers. Chart 10 demonstrates this occurrence and highlights a CIP reserve deficit of $2.7 m illion in FY 2030-31 followed by a deficit CIP fund balance of $3.3 in FY 2031-32. 14 Chart 10. 2024 Model – CIP Fund Balance Projection The information above is based on projections and will be adjusted based on future actuals. As another perspective, it’s important to point out that the CIP Fund has sustained a healthy fund balance due to the General Fund surplus transfers authorized by t he City Council. The annual allocation of surplus dollars to the CIP Fund, when available, should remain a paramount option for consideration during the annual budget cycle. Ladera Linda Community Park Project As discussed, the City Council approved a General Fund surplus transfer of $889,500 to the CIP Fund for the loan payment in FY 2023-24. Following the FAC’s recommendation, the latest iteration of the model integrates debt service and designates interest and principal payments based on the amortization schedule to account for the full term of the loan. The FAC also recommended to add future operating costs for Ladera Linda Community Park, which are also included in the future projections. Special Revenue Fund Balance Projections The City’s major special revenue funds are Gas Tax, Proposition A, Proposition C, American Rescue Act Plan (ARPA), Measure R, Measure M, and Measure W. Most of the funding for special revenues is designated for street maintenance, public rights -of- way maintenance, and transit-related expenses. Staff ensures special revenue funds are utilized for any qualified projects before CIP reserves are appropriated. The 2024 Model is used to anticipate future deficit fund balances with respect to all special revenue funds. Table 7 highlights each fund with a projected deficit and the associated fiscal year where the issue may occur. This information may not reflect actual amounts and additional unknown factors at the time of projection. With respect to this information, it’s worth keeping in mind that the deficit balances may be the result of grant revenues that have not been received, available funding to be carried forward, and projected revenues and expenditures that require ongoing review and adjustments over the long-term. 15 Table 7. Special Revenue and Other Funds Projected Deficit Fund Balance Summary of deficit fund balances: • Waste Reduction (213) revenues are generated by fees collected from the City’s waste haulers, in addition to various waste-reduction grants that may be received. Funds are allocated toward state-mandated programs and litter abatement programs. Future deficits are likely to be offset by waste reduction grant funding. • Habitat Restoration (222) revenues are generated by interest earnings. As the cost of maintenance and professional and technical services continues to outpace revenues, future transfers or reduced spending may be required to sustain the fund beyond FY 2023-24. • Abalone Cove Sewer Fund (225) will receive a transfer from the General Fund of $70,000 in FY 2023-24 to support planned expenditures. Additional carry-forward amounts will help sustain the fund through the next fiscal year. Fund 225 will require future transfers due to its revenue source being limited to property tax revenue received for that region of Rancho Palos Verdes. • IA Portuguese Bend Maintenance (285) will also receive a transfer of $15,000 in the FY 2023-24 budget to support maintenance operations. The General Fund will likely continue to subsidize this region due to the declining fund balance. Fund balance is expected to have a deficit in FY 2026-27 based on projections. • Employee Pension Service Fund (685) is funded by transfers from the General Fund and was established to set aside funding for payments toward the UAL. Given the forecasted increase to UAL payments included in the 2024 Model, the available fund balance can support payments through FY 2026-27 unless additional transfers continue. As mentioned, several of the fund balances above have a deficit due to the capital projects budgeted in the five-year program. However, until those grant dollars are received, this information provides an indication that capital infrastructure expenditures must be met with future grant revenues or others. Furthermore, funds with insufficient revenue sources will likely require ongoing or new subsidies from the General Fund. ADDITIONAL INFORMATION: The following information is not related to the analysis discussed above but is being provided as information that may impact the Model in subsequent years. FUND 2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 213-WASTE REDUCTION (70,858) (171,864) (278,480) (390,818) (508,993) (633,122) 222-HABITAT RESTORATION (9,997) (184,220) (361,928) (543,190) (728,077) (916,662) (1,109,018) (1,305,222) (1,505,349) 225-ABALONE COVE SEWER DIST (32,508) (124,812) (217,771) (311,315) (405,403) (499,995) (595,045) (690,504) (786,322) 285-IA PORTUGUESE BEND MAINT (17,519) (41,175) (65,619) (90,867) (116,935) (143,839) 682-EMPLOYEE PENSION PLAN (456,108) (1,005,609) (1,721,899) (2,473,975) (3,262,833) (4,089,468) TOTALS 0 (42,505) (309,033) (579,699) (1,398,990) (2,352,128) (3,482,655) (4,659,724) (5,884,488) (7,158,101) 16 Finance Advisory Committee Recommendation The 2024 Model integrates a variety of economic assumpti ons, historical data, and sophisticated forecasting techniques to support the City’s financial outlook. As operations and financial conditions change, so must the City’s approach. Staff intends to build upon the existing model to adapt to an ever-changing and uncertain economic environment. The FAC recommended that the 2024 Model should include projected increases in maintenance costs related to operations once the Ladera Linda Community Park Project is completed. These expenditures have also been added to the baseline projection. As discussed within this report, FAC remains interested in the rising cost of public safety and its impact on the primary revenue source for the CIP Fund, TOT. Therefore, an updated projection was also included and will be examined further upon direction from FAC or the City Council. Taxes and Fee Reduction Since 2014, the City Council has taken several actions to reduce taxes to the community. Some of the major tax reductions and the estimated impact are listed in Table 10 below. From August 2014 to June 30, 2024, the total estimated tax reduction is slightly above $22.4 million. The sunset of the Storm Drain User Fees, over $11.3 million reductions in revenue, impacts the CIP Fund for all sewer and storm drain improvement projects. The services previously supported by revenue collection from UUT on telecommunication services, the 1972 Act, and business license tax (BLT) are now supported by other general tax revenues and fees. The suspension of the UUT on telecommunication services, the tax assessment for the 1972 Act, the CPI adjustment for BLT, and the elimination of BLT on Home Occupancy, totaled nearly $11.1 million in reduced revenue. Chart 11. Estimated Taxes and Fee Reduction CONCLUSION: In conclusion, the 2024 Model is a decision-making tool for the City. It provides a long- term financial outlook to be utilized by the City Council and Staff to make informed 17 decisions for both the short-term and long-term. The 2024 Model shows that all the budget adjustments made in the General Fund over the last couple years have positioned the City to have a structurally balanced budget, where operating revenues exceed operating expenditures through FY 2031-32. However, based on current estimates, there will be an ongoing need for the General Fund to support various other funds. Future operating expenses for these funds should be monitored and revised annually for prudent spending and to minimize the required subsidy from the General Fund. Despite the need for the General Fund to support several funds, most of the restricted funds will continue to support the annual operating expenses over the next 10 fiscal years but should be monitored appropriately to ensure that sufficient funding levels are achieved. 18 Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund BalanceFund 6/30/2023 6/30/2024 6/30/2025 6/30/2026 6/30/2027 6/30/2028 6/30/2029 6/30/2030 6/30/2031 6/30/2032General Fund Balance30,363,100     31,078,400     32,292,962     33,833,205     35,276,343     36,919,577     38,459,736     40,193,249     41,816,111     43,699,106     EXPENDITURES (EXCLUDING T/O)30,585,900     33,513,500     33,916,929     34,920,513     36,269,744     37,367,934     38,817,240     40,019,917     41,578,325     42,894,931     Restricted Amount (Policy Reserve)(15,292,950)   (16,756,750)   (16,958,464)   (17,460,257)   (18,134,872)   (18,683,967)   (19,408,620)   (20,009,958)   (20,789,162)   (21,447,466)   GENERAL FUND Unrestricted Balance15,070,150    14,321,650    15,334,498    16,372,948    17,141,471    18,235,610    19,051,117    20,183,291    21,026,949    22,251,640    Restricted by Council ActionCIP34,039,930     30,400,686     25,475,585     17,648,810     6,438,192       2,366,545       (4,922,333)     (12,548,243)   (20,526,049)   (28,949,717)   EQUIPMENT REPLACEMENT3,305,584       2,969,484       2,634,144       2,299,579       1,965,805       1,632,838       1,300,693       969,387          638,937          309,360          EMPLOYEE PENSION PLAN812,612          686,612          400,506          18,598            (456,108)         (1,005,609)     (1,721,899)     (2,473,975)     (3,262,833)     (4,089,468)     Subtotal38,158,126    34,056,782    28,510,235    19,966,987    7,947,889       2,993,774       (5,343,539)     (14,052,832)   (23,149,945)   (32,729,825)   Restricted by Law or External AgenciesGAS TAX2,233,386       1,911,186       1,633,966       1,546,124       1,452,547       1,132,569       933,878          684,976          384,420          30,728            1972 ACT29,866            30,166            30,472            30,784            31,102            31,427            31,758            32,096            32,441            32,792            EL PRADO LIGHTING46,528            49,908            53,483            57,197            61,057            65,070            69,241            73,577            78,084            82,769            CDBG24,010            24,010            24,010            24,010            24,010            24,010            24,010            24,010            24,010            24,010            1911 ACT2,584,945       3,206,145       3,876,573       4,575,430       5,304,332       6,064,523       6,857,297       7,684,001       8,546,037       9,444,863       WASTE REDUCTION300,188          199,588          114,761          24,648            (70,858)           (171,864)         (278,480)         (390,818)         (508,993)         (633,122)         AIR QUALITY MANAGEMENT55,782            111,382          113,014          114,679          116,377          118,108          119,875          121,677          123,515          125,389          PROPOSITION C125,580          79,480            89,578            99,878            807,434          2,115,641       2,658,012       3,213,836       3,783,250       4,366,392       PROPOSITION A2,108,015       2,476,788       2,828,968       3,164,225       3,482,218       3,782,603       4,065,028       4,329,133       4,574,552       4,800,912       PUBLIC SAFETY GRANTS23,986            24,086            24,086            24,086            24,086            24,086            24,086            24,086            24,086            24,086            MEASURE R2,296,047       2,383,347       2,216,048       2,099,782       1,480,199       1,377,971       1,260,789       1,167,366       1,098,436       1,054,756       MEASURE M286,391          (217,209)         8,029               16,248            24,632            33,183            41,905            50,802            59,876            69,132            HABITAT RESTORATION165,203          (9,997)             (184,220)         (361,928)         (543,190)         (728,077)         (916,662)         (1,109,018)     (1,305,222)     (1,505,349)     SUBREGION 1 MAINTENANCE771,550          810,950          845,783          880,312          914,531          948,436          982,018          1,015,272       1,048,191       1,080,768       MEASURE A191,398          193,298          193,298          193,298          193,298          193,298          193,298          193,298          193,298          193,298          ABALONE COVE SEWER DISTRICT9,892               (32,508)           (124,812)         (217,771)         (311,315)         (405,403)         (499,995)         (595,045)         (690,504)         (786,322)         DONOR RESTRICTED CONTRIBUTIONS850,847          879,747          909,788          940,996          973,218          1,006,488       1,040,838       1,076,301       1,112,914       1,150,712       FEDERAL GRANTS0(2,479,500)     (4,959,900)     (10,400,000)   (7,100,000)     00000STATE GRANTS1,381,829       1,027,519       (301,081)         1,172,519       1,172,519       1,172,519       1,172,519       1,172,519       1,172,519       1,172,519       FEDERAL GRANTS‐ARPA2,082,459       (1,047,141)     (0) (0) (0) (0) (0) (0) (0) (0) QUIMBY133,742          141,342          149,094          157,001          165,066          173,293          181,684          190,243          198,973          207,877          LOW‐MOD INCOME HOUSING378,970          417,970          458,058          499,647          542,817          587,628          634,146          682,435          732,567          784,611          AFFORDABLE HOUSING IN LIEU897,865          908,865          920,085          931,529          943,203          955,109          967,254          979,642          992,278          1,005,166       ENVIRONMENTAL EXCISE TAX67,545            92,345            118,111          144,759          172,193          200,436          229,512          259,446          290,264          321,991          BIKEWAYS29,100            77,600            126,100          174,600          223,100          271,600          320,100          368,600          417,100          465,600          MEASURE W1,005,198       1,087,198       1,097,704       1,455,994       1,807,151       2,151,030       2,487,487       2,816,373       3,137,537       3,450,824       IMPROV AUTH ‐ PORTUGUESE BEND78,224            48,874            27,491            5,365               (17,519)           (41,175)           (65,619)           (90,867)           (116,935)         (143,839)         IMPROV AUTH ‐ ABALONE COVE1,078,873       1,078,773       1,080,421       1,081,904       1,083,219       1,084,362       1,085,330       1,086,119       1,086,727       1,087,148       Subtotal of Restricted Funds in Deficit‐ (3,786,355)     (5,570,014)     (10,979,699)   (8,042,881)     (1,346,519)     (1,760,756)     (2,185,748)     (2,621,654)     (3,068,633)     Subtotal of Other Restricted Funds 19,246,448     17,273,496     16,951,850     19,427,942     21,011,237     23,526,318     25,392,993     27,258,738     29,124,003     30,989,274     GRAND TOTAL87,767,674    78,622,323    72,185,033    62,248,435    56,192,587    62,093,151    56,748,435    51,213,407    45,168,514    38,889,921    CITY OF RANCHO PALOS VERDES2024 TEN‐YEAR FINANCIAL MODELFund Balance Summary and Details*Funds with deficit balances will be offset by purchase order carry-overs during FY 2022-23 year-end closing process.The deficit balances in Federal or State grant funds will be offset by future grant reimbursements.A-1 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFUND SUMMARYFUNDTYPE2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F101‐GENERAL FUND1‐REVENUES37,678,800    38,524,800    39,018,194    39,916,045    40,861,882    41,840,485    42,853,097    43,901,010    44,985,565    46,104,909    2‐EXPENDITURES30,585,900    33,513,500    33,916,929    34,920,513    36,269,744    37,367,934    38,817,240    40,019,917    41,578,325    42,894,931    OPERATING SURPLUS/(DEFICIT) 7,092,900      5,011,300      5,101,266      4,995,532      4,592,138      4,472,551      4,035,858      3,881,093      3,407,241      3,209,978      3‐TRANSFERS‐IN300,000          270,000          260,000          260,000          260,000          260,000          260,000          260,000          260,000          260,000          4‐TRANSFERS‐OUT7,758,800      4,566,000      4,146,704      3,715,289      3,409,000      3,089,317      2,755,698      2,407,581      2,044,378      1,586,983      TRANSFERS NET(7,458,800)     (4,296,000)     (3,886,704)     (3,455,289)     (3,149,000)     (2,829,317)     (2,495,698)     (2,147,581)     (1,784,378)     (1,326,983)     TOTAL OVER/(UNDER)(365,900)        715,300          1,214,562      1,540,243      1,443,138      1,643,234      1,540,159      1,733,513      1,622,862      1,882,994      BALANCE30,363,100    31,078,400    32,292,962    33,833,205    35,276,343    36,919,577    38,459,736    40,193,249    41,816,111    43,699,106    POLICY RESERVE (50% EXPS.) 15,292,950    16,756,750    16,958,464    17,460,257    18,134,872    18,683,967    19,408,620    20,009,958    20,789,162    21,447,466    EXCESS/(DEFICIENCY)15,070,150    14,321,650    15,334,498    16,372,948    17,141,471    18,235,610    19,051,117    20,183,291    21,026,949    22,251,640    202‐GAS TAX1‐REVENUES2,040,296      2,263,700      2,284,996      2,306,718      2,328,874      2,345,922      2,363,228      2,375,075      2,387,045      2,399,139      2‐EXPENDITURES1,328,889      2,585,900      2,562,216      2,394,560      2,422,451      2,665,900      2,561,918      2,623,977      2,687,601      2,752,832      OPERATING SURPLUS/(DEFICIT) 711,407          (322,200)        (277,220)        (87,842)           (93,577)           (319,978)        (198,691)        (248,902)        (300,556)        (353,693)        3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)711,407          (322,200)        (277,220)        (87,842)           (93,577)           (319,978)        (198,691)        (248,902)        (300,556)        (353,693)        BALANCE2,233,386      1,911,186      1,633,966      1,546,124      1,452,547      1,132,569      933,878          684,976          384,420          30,728            203‐1972 ACT LANDSCAPE/LIGHT 1‐REVENUES944 300 306 312 318 325 331 338 345 351 2‐EXPENDITURES‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT)944 300 306 312 318 325 331 338 345 351 3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)944 300 306 312 318 325 331 338 345 351 BALANCE29,866            30,166            30,472            30,784            31,102            31,427            31,758            32,096            32,441            32,792            209‐EL PRADO LIGHTING DIST 1‐REVENUES4,664              3,880              3,987              4,135              4,290              4,451              4,618              4,791              4,972              5,159              2‐EXPENDITURES500 500 413 421 429 438 447 456 465 474 OPERATING SURPLUS/(DEFICIT) 4,164              3,380              3,575              3,714              3,860              4,013              4,171              4,336              4,507              4,685              3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)4,164              3,380              3,575              3,714              3,860              4,013              4,171              4,336              4,507              4,685              BALANCE46,528            49,908            53,483            57,197            61,057            65,070            69,241            73,577            78,084            82,769            211‐1911 ACT STREET LIGHTING 1‐REVENUES791,710          776,200          798,332          829,318          861,973          895,923          931,221          967,920          1,006,076      1,045,747      2‐EXPENDITURES110,000          155,000          127,903          130,461          133,071          135,732          138,447          141,216          144,040          146,921          OPERATING SURPLUS/(DEFICIT) 681,710          621,200          670,428          698,857          728,902          760,191          792,774          826,704          862,036          898,826          3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)681,710          621,200          670,428          698,857          728,902          760,191          792,774          826,704          862,036          898,826          BALANCE2,584,945      3,206,145      3,876,573      4,575,430      5,304,332      6,064,523      6,857,297      7,684,001      8,546,037      9,444,863      A-2 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFUND SUMMARYFUNDTYPE2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F213‐WASTE REDUCTION 1‐REVENUES 208,512          197,400          197,498          197,598          197,700          197,804          197,910          198,018          198,129          198,241          2‐EXPENDITURES 300,500          298,000          282,325          287,711          293,206          298,810          304,526          310,357          316,304          322,370          OPERATING SURPLUS/(DEFICIT)(91,988)           (100,600)        (84,827)           (90,113)           (95,506)           (101,006)        (106,616)        (112,338)        (118,175)        (124,129)        3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)(91,988)           (100,600)        (84,827)           (90,113)           (95,506)           (101,006)        (106,616)        (112,338)        (118,175)        (124,129)        BALANCE300,188          199,588          114,761          24,648            (70,858)           (171,864)        (278,480)        (390,818)        (508,993)        (633,122)        214‐AIR QUALITY MANAGEMENT 1‐REVENUES58,390            55,600            55,632            55,665            55,698            55,732            55,767            55,802            55,838            55,875            2‐EXPENDITURES140,000          054,000            54,000            54,000            54,000            54,000            54,000            54,000            54,000            OPERATING SURPLUS/(DEFICIT)(81,610)           55,600            1,632              1,665              1,698              1,732              1,767              1,802              1,838              1,875              3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)(81,610)           55,600            1,632              1,665              1,698              1,732              1,767              1,802              1,838              1,875              BALANCE55,782            111,382          113,014          114,679          116,377          118,108          119,875          121,677          123,515          125,389          215‐PROPOSITION C1‐REVENUES863,867          1,003,900      1,110,098      1,245,300      1,282,556      1,308,207      1,334,371      1,347,824      1,361,414      1,375,142      2‐EXPENDITURES1,434,095      1,050,000      1,100,000      1,235,000      575,000          0792,000          792,000          792,000          792,000          OPERATING SURPLUS/(DEFICIT)(570,228)        (46,100)           10,098            10,300            707,556          1,308,207      542,371          555,824          569,414          583,142          3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)(570,228)        (46,100)           10,098            10,300            707,556          1,308,207      542,371          555,824          569,414          583,142          BALANCE125,580          79,480            89,578            99,878            807,434          2,115,641      2,658,012      3,213,836      3,783,250      4,366,392      EXCESS/(DEFICIENCY)125,580          79,480            89,578            99,878            807,434          2,115,641      2,658,012      3,213,836      3,783,250      4,366,392      216‐PROPOSITION A1‐REVENUES1,071,910      1,223,000      1,223,492      1,223,994      1,224,506      1,225,028      1,225,560      1,226,104      1,226,658      1,227,223      2‐EXPENDITURES776,800          854,227          871,312          888,738          906,513          924,643          943,136          961,998          981,238          1,000,863      OPERATING SURPLUS/(DEFICIT) 295,110          368,773          352,180          335,256          317,993          300,385          282,425          264,105          245,419          226,360          3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)295,110          368,773          352,180          335,256          317,993          300,385          282,425          264,105          245,419          226,360          BALANCE2,108,015      2,476,788      2,828,968      3,164,225      3,482,218      3,782,603      4,065,028      4,329,133      4,574,552      4,800,912      217‐PUBLIC SAFETY GRANTS 1‐REVENUES169,443          170,100          170,132          170,165          170,198          170,232          170,267          170,302          170,338          170,375          2‐EXPENDITURES‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT) 169,443          170,100          170,132          170,165          170,198          170,232          170,267          170,302          170,338          170,375          3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT250,000          170,000          170,132          170,165          170,198          170,232          170,267          170,302          170,338          170,375          TRANSFERS NET(250,000)        (170,000)        (170,132)        (170,165)        (170,198)        (170,232)        (170,267)        (170,302)        (170,338)        (170,375)        TOTAL OVER/(UNDER)(80,557)           100 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ BALANCE23,986            24,086            24,086            24,086            24,086            24,086            24,086            24,086            24,086            24,086            A-3 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFUND SUMMARYFUNDTYPE2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F220‐MEASURE R1‐REVENUES 693,544          772,300          795,201          818,784          843,068          868,076          893,828          920,347          947,656          975,778          2‐EXPENDITURES 210,848          685,000          962,500          935,050          1,462,651      970,304          1,011,010      1,013,770      1,016,586      1,019,457      OPERATING SURPLUS/(DEFICIT) 482,696          87,300            (167,299)        (116,266)        (619,583)        (102,228)        (117,182)        (93,423)           (68,930)           (43,680)           3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)482,696          87,300            (167,299)        (116,266)        (619,583)        (102,228)        (117,182)        (93,423)           (68,930)           (43,680)           BALANCE2,296,047      2,383,347      2,216,048      2,099,782      1,480,199      1,377,971      1,260,789      1,167,366      1,098,436      1,054,756      221‐MEASURE M1‐REVENUES732,737          852,800          4,079,058      766,916          782,254          797,899          813,857          830,134          846,737          863,672          2‐EXPENDITURES938,582          1,356,400      3,853,820      758,697          773,870          789,348          805,135          821,237          837,662          854,415          OPERATING SURPLUS/(DEFICIT)(205,845)        (503,600)        225,238          8,219              8,384              8,551              8,722              8,897              9,075              9,256              3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)(205,845)        (503,600)        225,238          8,219              8,384              8,551              8,722              8,897              9,075              9,256              BALANCE286,391          (217,209)        8,029              16,248            24,632            33,183            41,905            50,802            59,876            69,132            222‐HABITAT RESTORATION 1‐REVENUES11,565            3,800              3,876              3,954              4,033              4,113              4,196              4,279              4,365              4,452              2‐EXPENDITURES206,500          179,000          178,099          181,661          185,294          189,000          192,780          196,636          200,569          204,580          OPERATING SURPLUS/(DEFICIT)(194,935)        (175,200)        (174,223)        (177,708)        (181,262)        (184,887)        (188,585)        (192,357)        (196,204)        (200,128)        3‐TRANSFERS‐IN‐ 0‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ 0‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)(194,935)        (175,200)        (174,223)        (177,708)        (181,262)        (184,887)        (188,585)        (192,357)        (196,204)        (200,128)        BALANCE165,203          (9,997)             (184,220)        (361,928)        (543,190)        (728,077)        (916,662)        (1,109,018)     (1,305,222)     (1,505,349)     EMERGENCY PROJECTS RESERVE‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ EXCESS/(DEFICIENCY)165,203          (9,997)             (184,220)        (361,928)        (543,190)        (728,077)        (916,662)        (1,109,018)     (1,305,222)     (1,505,349)     223‐SUBREGION ONE MAINTENANCE 1‐REVENUES23,934            9,400              9,588              9,780              9,975              10,175            10,378            10,586            10,798            11,014            2‐EXPENDITURES28,000            30,000            24,755            25,251            25,756            26,271            26,796            27,332            27,879            28,436            OPERATING SURPLUS/(DEFICIT)(4,066)             (20,600)           (15,167)           (15,471)           (15,780)           (16,096)           (16,418)           (16,746)           (17,081)           (17,423)           3‐TRANSFERS‐IN50,000            60,000            50,000            50,000            50,000            50,000            50,000            50,000            50,000            50,000            4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET50,000            60,000            50,000            50,000            50,000            50,000            50,000            50,000            50,000            50,000            TOTAL OVER/(UNDER)45,934            39,400            34,833            34,529            34,220            33,904            33,582            33,254            32,919            32,577            BALANCE771,550          810,950          845,783          880,312          914,531          948,436          982,018          1,015,272      1,048,191      1,080,768      NON‐SPENDABLE ENDOWMENT 750,000          750,000          750,000          750,000          750,000          750,000          750,000          750,000          750,000          750,000          EXCESS/(DEFICIENCY)21,550            60,950            95,783            130,312          164,531          198,436          232,018          265,272          298,191          330,768          A-4 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFUND SUMMARYFUNDTYPE2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F224‐MEASURE A MAINTENANCE 1‐REVENUES 91,820            101,900          101,938          101,977          102,016          102,057          102,098          102,140          102,183          102,226          2‐EXPENDITURES‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT) 91,820            101,900          101,938          101,977          102,016          102,057          102,098          102,140          102,183          102,226          3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT50,000            100,000          101,938          101,977          102,016          102,057          102,098          102,140          102,183          102,226          TRANSFERS NET(50,000)           (100,000)        (101,938)        (101,977)        (102,016)        (102,057)        (102,098)        (102,140)        (102,183)        (102,226)        TOTAL OVER/(UNDER)41,820            1,900              ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ BALANCE191,398          193,298          193,298          193,298          193,298          193,298          193,298          193,298          193,298          193,298          225‐ABALONE COVE SEWER DIST 1‐REVENUES63,190            61,100            62,846            65,295            67,875            70,558            73,348            76,249            79,265            82,401            2‐EXPENDITURES207,500          173,500          155,151          158,254          161,419          164,647          167,940          171,299          174,725          178,219          OPERATING SURPLUS/(DEFICIT)(144,310)        (112,400)        (92,304)           (92,959)           (93,543)           (94,089)           (94,592)           (95,050)           (95,459)           (95,818)           3‐TRANSFERS‐IN‐ 70,000            ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ 70,000            ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)(144,310)        (42,400)           (92,304)           (92,959)           (93,543)           (94,089)           (94,592)           (95,050)           (95,459)           (95,818)           BALANCE9,892              (32,508)           (124,812)        (217,771)        (311,315)        (405,403)        (499,995)        (595,045)        (690,504)        (786,322)        228‐DONOR RESTRICTED CONTRIB 1‐REVENUES70,862            46,900            48,564            50,102            51,494            52,927            54,400            55,915            57,473            59,075            2‐EXPENDITURES13,500            18,000            18,523            18,894            19,272            19,657            20,050            20,451            20,860            21,277            OPERATING SURPLUS/(DEFICIT) 57,362            28,900            30,041            31,208            32,223            33,270            34,350            35,464            36,613            37,798            3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)57,362            28,900            30,041            31,208            32,223            33,270            34,350            35,464            36,613            37,798            BALANCE850,847          879,747          909,788          940,996          973,218          1,006,488      1,040,838      1,076,301      1,112,914      1,150,712      285‐IA PORTUGUESE BEND MAINT 1‐REVENUES1,525              650 750 750 750 750 750 750 750 750 2‐EXPENDITURES6,000              45,000            37,133            37,876            38,633            39,406            40,194            40,998            41,818            42,654            OPERATING SURPLUS/(DEFICIT)(4,475)             (44,350)           (36,383)           (37,126)           (37,883)           (38,656)           (39,444)           (40,248)           (41,068)           (41,904)           3‐TRANSFERS‐IN15,000            15,000            15,000            15,000            15,000            15,000            15,000            15,000            15,000            15,000            4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET15,000            15,000            15,000            15,000            15,000            15,000            15,000            15,000            15,000            15,000            TOTAL OVER/(UNDER)10,525            (29,350)           (21,383)           (22,126)           (22,883)           (23,656)           (24,444)           (25,248)           (26,068)           (26,904)           BALANCE78,224            48,874            27,491            5,365              (17,519)           (41,175)           (65,619)           (90,867)           (116,935)        (143,839)        A-5 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFUND SUMMARYFUNDTYPE2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F310‐CDBG 1‐REVENUES 351,230          150,000          150,000          150,000          150,000          150,000          150,000          150,000          150,000          150,000          2‐EXPENDITURES 350,000          150,000          150,000          150,000          150,000          150,000          150,000          150,000          150,000          150,000          OPERATING SURPLUS/(DEFICIT) 1,230              (0) (0) (0) (0) (0) ‐ ‐ ‐ ‐ 3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)1,230              (0) (0) (0) (0) (0) ‐ ‐ ‐ ‐ BALANCE24,010            24,010            24,010            24,010            24,010            24,010            24,010            24,010            24,010            24,010            330‐INFRASTRUCTURE IMPRVMNTS 1‐REVENUES1,220,834      502,000          512,040          522,281          532,726          543,381          554,249          565,334          576,640          588,173          2‐EXPENDITURES12,589,734    8,562,245      9,380,845      11,999,345    15,087,345    7,639,345      10,533,825    10,533,825    10,533,825    10,533,825    OPERATING SURPLUS/(DEFICIT)(11,368,900)   (8,060,245)     (8,868,805)     (11,477,064)   (14,554,618)   (7,095,964)     (9,979,576)     (9,968,491)     (9,957,184)     (9,945,652)     3‐TRANSFERS‐IN7,293,800      4,421,000      3,943,704      3,650,289      3,344,000      3,024,317      2,690,698      2,342,581      1,979,378      1,521,983      4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET7,293,800      4,421,000      3,943,704      3,650,289      3,344,000      3,024,317      2,690,698      2,342,581      1,979,378      1,521,983      TOTAL OVER/(UNDER)(4,075,100)     (3,639,245)     (4,925,101)     (7,826,775)     (11,210,618)   (4,071,647)     (7,288,878)     (7,625,910)     (7,977,806)     (8,423,668)     BALANCE34,039,930    30,400,686    25,475,585    17,648,810    6,438,192      2,366,545      (4,922,333)     (12,548,243)   (20,526,049)   (28,949,717)   EMERGENCY PROJECTS RESERVE 5,000,000      5,000,000      5,000,000      5,000,000      5,000,000      5,000,000      5,000,000      5,000,000      5,000,000      5,000,000      EXCESS/(DEFICIENCY)29,039,930    25,400,686    20,475,585    12,648,810    1,438,192      (2,633,455)     (9,922,333)     (17,548,243)   (25,526,049)   (33,949,717)   331‐FEDERAL GRANTS1‐REVENUES002,479,500      4,959,900      10,400,000    7,100,000      ‐ ‐ ‐ ‐ 2‐EXPENDITURES‐ 2,479,500      4,959,900      10,400,000    7,100,000      0‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT)0(2,479,500)     (2,480,400)     (5,440,100)     3,300,000      7,100,000      ‐ ‐ ‐ ‐ 3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)0(2,479,500)     (2,480,400)     (5,440,100)     3,300,000      7,100,000      ‐ ‐ ‐ ‐ BALANCE0(2,479,500)     (4,959,900)     (10,400,000)   (7,100,000)     00000332‐STATE GRANTS1‐REVENUES1,669,550      690 355,000          1,683,600      210,000          210,000          210,000          210,000          210,000          210,000          2‐EXPENDITURES220,938          355,000          1,683,600      210,000          210,000          210,000          210,000          210,000          210,000          210,000          OPERATING SURPLUS/(DEFICIT) 1,448,612      (354,310)        (1,328,600)     1,473,600      ‐ ‐ 0‐ ‐ ‐ 3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)1,448,612      (354,310)        (1,328,600)     1,473,600      ‐ ‐ 0‐ ‐ ‐ BALANCE1,381,829      1,027,519      (301,081)        1,172,519      1,172,519      1,172,519      1,172,519      1,172,519      1,172,519      1,172,519      **The deficit fund balance for Fund 330 - Infrastructure Improvements is calculated based on budgeted revenues and expenditures. A revised fund balance using historical spending rates and estimated actual expenditures is included in the Financial Model staff report. **A-6 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFUND SUMMARYFUNDTYPE2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F333‐FEDERAL GRANTS‐ARPA 1‐REVENUES 5,138,584      83,000            1,047,141      0‐ ‐ ‐ ‐ ‐ ‐ 2‐EXPENDITURES3,026,128      3,212,600      0000‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT) 2,112,456      (3,129,600)     1,047,141      0(0) (0) ‐ ‐ ‐ ‐ 3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)2,112,456      (3,129,600)     1,047,141      0(0) (0) ‐ ‐ ‐ ‐ BALANCE2,082,459      (1,047,141)     (0) (0) (0) (0) (0) (0) (0) (0) 334‐QUIMBY PARK DEVELOPMENT 1‐REVENUES22,031            7,600              7,752              7,907              8,065              8,226              8,391              8,559              8,730              8,905              2‐EXPENDITURES543,026          00000‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT)(520,995)        7,600              7,752              7,907              8,065              8,226              8,391              8,559              8,730              8,905              3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)(520,995)        7,600              7,752              7,907              8,065              8,226              8,391              8,559              8,730              8,905              BALANCE133,742          141,342          149,094          157,001          165,066          173,293          181,684          190,243          198,973          207,877          336‐LOW‐MODERATE INCOME HOUSI 1‐REVENUES66,293            39,000            40,088            41,589            43,170            44,812            46,517            48,290            50,131            52,045            2‐EXPENDITURES‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT) 66,293            39,000            40,088            41,589            43,170            44,812            46,517            48,290            50,131            52,045            3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)66,293            39,000            40,088            41,589            43,170            44,812            46,517            48,290            50,131            52,045            BALANCE378,970          417,970          458,058          499,647          542,817          587,628          634,146          682,435          732,567          784,611          337‐AFFORDABLE HOUSING PROJ 1‐REVENUES28,161            11,000            11,220            11,444            11,673            11,907            12,145            12,388            12,636            12,888            2‐EXPENDITURES‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT) 28,161            11,000            11,220            11,444            11,673            11,907            12,145            12,388            12,636            12,888            3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)28,161            11,000            11,220            11,444            11,673            11,907            12,145            12,388            12,636            12,888            BALANCE897,865          908,865          920,085          931,529          943,203          955,109          967,254          979,642          992,278          1,005,166      A-7 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFUND SUMMARYFUNDTYPE2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F338‐DEVELOP IMPACT MIT (EET) 1‐REVENUES 27,303            24,800            25,766            26,648            27,434            28,243            29,076            29,934            30,818            31,727            2‐EXPENDITURES 64,000             ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT)(36,697)           24,800            25,766            26,648            27,434            28,243            29,076            29,934            30,818            31,727            3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)(36,697)           24,800            25,766            26,648            27,434            28,243            29,076            29,934            30,818            31,727            BALANCE67,545            92,345            118,111          144,759          172,193          200,436          229,512          259,446          290,264          321,991          340‐BICYCLE/PEDESTRIAN ACCESS 1‐REVENUES29,100            48,500            48,500            48,500            48,500            48,500            48,500            48,500            48,500            48,500            2‐EXPENDITURES‐ 00000‐ ‐ ‐ ‐ OPERATING SURPLUS/(DEFICIT) 29,100            48,500            48,500            48,500            48,500            48,500            48,500            48,500            48,500            48,500            3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)29,100            48,500            48,500            48,500            48,500            48,500            48,500            48,500            48,500            48,500            BALANCE29,100            77,600            126,100          174,600          223,100          271,600          320,100          368,600          417,100          465,600          343‐MEASURE W1‐REVENUES711,438          690,300          5,735,727      725,716          725,930          726,149          726,372          726,599          726,831          727,068          2‐EXPENDITURES407,500          608,300          5,725,221      367,426          374,774          382,270          389,915          397,713          405,668          413,781          OPERATING SURPLUS/(DEFICIT) 303,938          82,000            10,506            358,290          351,156          343,879          336,457          328,886          321,164          313,287          3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)303,938          82,000            10,506            358,290          351,156          343,879          336,457          328,886          321,164          313,287          BALANCE1,005,198      1,087,198      1,097,704      1,455,994      1,807,151      2,151,030      2,487,487      2,816,373      3,137,537      3,450,824      681‐EQUIPMENT REPLACEMENT 1‐REVENUES385,350          284,900          285,660          286,435          287,226          288,032          288,855          289,694          290,550          291,423          2‐EXPENDITURES‐ 621,000          621,000          621,000          621,000          621,000          621,000          621,000          621,000          621,000          OPERATING SURPLUS/(DEFICIT) 385,350          (336,100)        (335,340)        (334,565)        (333,774)        (332,968)        (332,145)        (331,306)        (330,450)        (329,577)        3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)385,350          (336,100)        (335,340)        (334,565)        (333,774)        (332,968)        (332,145)        (331,306)        (330,450)        (329,577)        BALANCE3,305,584      2,969,484      2,634,144      2,299,579      1,965,805      1,632,838      1,300,693      969,387          638,937          309,360          682‐EMPLOYEE PENSION PLAN 1‐REVENUES20,004            9,700              9,894              10,092            10,294            10,500            10,710            10,924            11,142            11,365            2‐EXPENDITURES242,000          135,700          296,000          392,000          485,000          560,000          727,000          763,000          800,000          838,000          OPERATING SURPLUS/(DEFICIT)(221,996)        (126,000)        (286,106)        (381,908)        (474,706)        (549,500)        (716,290)        (752,076)        (788,858)        (826,635)        3‐TRANSFERS‐IN400,000          ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET400,000          ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)178,004          (126,000)        (286,106)        (381,908)        (474,706)        (549,500)        (716,290)        (752,076)        (788,858)        (826,635)        BALANCE812,612          686,612          400,506          18,598            (456,108)        (1,005,609)     (1,721,899)     (2,473,975)     (3,262,833)     (4,089,468)     A-8 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFUND SUMMARYFUNDTYPE2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F795‐IA ABALONE COVE MAINT 1‐REVENUES 23,385            9,900              9,900              9,900              9,900              9,900              9,900              9,900              9,900              9,900              2‐EXPENDITURES 5,000              10,000            8,252              8,417              8,585              8,757              8,932              9,111              9,293              9,479              OPERATING SURPLUS/(DEFICIT) 18,385            (100)1,648 1,483              1,315              1,143              968 789 607 421 3‐TRANSFERS‐IN‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4‐TRANSFERS‐OUT‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TRANSFERS NET‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL OVER/(UNDER)18,385            (100)1,648 1,483              1,315              1,143              968 789 607 421 BALANCE1,078,873      1,078,773      1,080,422 1,081,905      1,083,220      1,084,363      1,085,331      1,086,120      1,086,727      1,087,148      NON‐SPENDABLE ENDOWMENT 1,000,000      1,000,000      1,000,000 1,000,000      1,000,000      1,000,000      1,000,000      1,000,000      1,000,000      1,000,000      EXCESS/(DEFICIENCY)78,873            78,773            80,422            81,905            83,220            84,363            85,331            86,120            86,727            87,148            TOTAL1‐REVENUES54,280,005    47,933,020    60,682,677    56,250,817    61,314,379    59,130,313    53,183,939    54,357,706    55,571,483    56,823,523    2‐EXPENDITURES53,735,940    57,078,372    66,969,896    66,175,273    67,358,012    53,217,461    58,516,290    59,880,292    61,603,855    63,089,515    OPERATING SURPLUS/(DEFICIT) 544,065          (9,145,352)     (6,287,220)     (9,924,456)     (6,043,634)     5,912,852      (5,332,351)     (5,522,586)     (6,032,373)     (6,265,992)     3‐TRANSFERS‐IN8,058,800      4,836,000      4,268,704      3,975,289      3,669,000      3,349,317      3,015,698      2,667,581      2,304,378      1,846,983      4‐TRANSFERS‐OUT8,058,800      4,836,000      4,418,774      3,987,430      3,681,214      3,361,606      3,028,063      2,680,022      2,316,899      1,859,584      TRANSFERS NET‐ ‐ (150,070)        (12,141)           (12,214)           (12,289)           (12,364)           (12,442)           (12,520)           (12,601)           TOTAL OVER/(UNDER)544,065          (9,145,352)     (6,437,290)     (9,936,598)     (6,055,848)     5,900,563      (5,344,716)     (5,535,028)     (6,044,893)     (6,278,593)     BALANCE87,767,675    78,622,323    72,185,033    62,248,435    56,192,588    62,093,151    56,748,436    51,213,408    45,168,515    38,889,922    A-9 FISCAL YEAR END 2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032FREVENUESPROPERTY TAX2.9% 3.9% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%TRANSIENT OCCUPANCY TAXES0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%SALES TAX1.0% 1.5% 2.1% 2.1% 2.1% 2.1% 2.1% 2.0%FRANCHISE TAX1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%UTILITY USERS TAX0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%PERMIT REVENUES1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%INVESTMENT INTEREST2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%EXPENDITURESNON-PERSONNEL EXPENDITURES2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%PERSONNEL EXPENDITURES5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%HEALTH INSURANCE5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%PERS NORMAL COSTS4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%PERS UNFUNDED LIABILITY0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%SHERIFF CONTRACT3.5% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%FORECAST ASSUMPTIONS - 2024 FINANCIAL MODELFY 2022-23 YE Est. and FY 2023-24 Budget prepared outside of modelFY 2022-23 YE Est. and FY 2023-24 Budget prepared outside of modelB-1 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFORECAST SUMMARY< SELECT FUND2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032FREVENUES (BY ACCOUNT TYPE)01‐PROPERTY TAX‐SECURED & OTHER 10,047,900     10,526,100     10,829,197     11,256,217     11,706,466     12,174,725     12,661,714     13,168,182        13,694,909       14,242,706     02‐PROPERTY TAX‐TRANSFER TAX435,000          450,000          462,958          481,213          500,462          520,480          541,299          562,951             585,469             608,888          03‐PROPERTY TAX‐IN LIEU OF VLF5,892,900       6,173,400       6,403,600       6,657,900       6,922,299       7,197,197       7,483,013       7,780,178          8,089,145          8,410,382       04‐SALES TAX2,844,400       2,855,800       2,884,358       2,927,623       2,989,103       3,051,875       3,115,964       3,181,399          3,248,209          3,313,173       05‐TRANSIENT OCCUPANCY TAX6,927,900       6,927,900       6,718,124       6,751,714       6,785,473       6,819,400       6,853,497       6,887,765          6,922,203          6,956,814       06‐UTILITY USERS TAX2,555,000       2,482,200       2,494,611       2,507,084       2,519,619       2,532,218       2,544,879       2,557,603          2,570,391          2,583,243       07‐BUSINESS LICENSE TAX702,500          712,500          712,500          712,500          712,500          712,500          712,500          712,500             712,500             712,500          08‐FRANCHISE TAX2,150,000       2,200,000       2,222,000       2,244,220       2,266,662       2,289,329       2,312,222       2,335,344          2,358,698          2,382,285       09‐OTHER TAXES698,200          720,120          723,008          723,008          723,008          723,008          723,008          723,008             723,008             723,008          SUBTOTAL‐LOCAL TAXES32,253,800    33,048,020    33,450,355    34,261,480    35,125,592    36,020,731    36,948,095    37,908,931        38,904,533       39,932,998    10‐LICENSES & PERMITS3,425,200       3,171,500       3,203,215       3,235,247       3,267,600       3,300,276       3,333,278       3,366,611          3,400,277          3,434,280       15‐CHARGES FOR SERVICES‐RECREATION312,300          489,000          508,560          526,360          542,150          558,415          575,167          592,422             610,195             628,501          16‐FINES & FORFEITURES153,400          172,400          179,296          185,571          191,139          196,873          202,779          208,862             215,128             221,582          17‐INTEREST EARNINGS321,300          314,000          320,280          326,686          333,219          339,884          346,681          353,615             360,687             367,901          17.3‐INTEREST EARNINGS ‐ FUND 330 INFRASTRUCTURE‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ 18‐LEASE & RENTAL INCOME577,300          630,200          655,408          678,347          698,698          719,659          741,248          763,486             786,390             809,982          19‐DONATIONS & DEVL FEES27,000            35,000            36,400            37,674            38,804            39,968            41,167            42,402               43,674               44,985            20‐CHARGES FOR SERVICES93,200            100,000          100,000          100,000          100,000          100,000          100,000          100,000             100,000             100,000          21‐MISCELLANEOUS REVENUES515,300          564,680          564,680          564,680          564,680          564,680          564,680          564,680             564,680             564,680          TOTAL REVENUES37,678,800    38,524,800    39,018,194    39,916,045    40,861,882    41,840,485    42,853,097    43,901,010        44,985,565       46,104,909    % ANNUAL CHANGE 4.9% 2.2% 1.3% 2.3% 2.4% 2.4% 2.4%2.4%2.5% 2.5%EXPENDITURES (BY ACCOUNT TYPE)01‐SALARY & WAGES 7,876,100       9,890,400       10,384,920     10,904,166     11,449,374     12,021,843     12,622,935     13,254,082        13,916,786       14,612,625     02‐HEALTH INSURANCE 737,900          972,900          982,629          992,455          1,002,380       1,012,404       1,022,528       1,032,753          1,043,080          1,053,511       03‐FICA/MEDICARE 125,000          155,000          162,750          170,888          179,432          188,403          197,824          207,715             218,101             229,006          04‐PERS 644,000          884,900          712,248          740,738          770,368          801,182          833,230          866,559             901,221             937,270          05‐DEFERRED COMP CITY MATCH255,000          345,500          362,775          380,914          399,959          419,957          440,955          463,003             486,153             510,461          06‐H.S.A.202,400          247,800          257,712          266,732          274,734          282,976          291,465          300,209             309,215             318,492          07.1‐CALPERS UNFUNDED LIABILITIES‐GF ONLY914,000          910,000          900,000          900,000          900,000          900,000          900,000          900,000             900,000             900,000          07.2‐CALPERS UNFUNDED LIABILITIES‐NON‐GF‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ 08‐WORKERS' COMP154,800          239,200          251,160          263,718          276,904          290,749          305,287          320,551             336,578             353,407          09‐OTHER BENEFITS22,500            26,000            27,300            28,665            30,098            31,603            33,183            34,842               36,585               38,414            SUBTOTAL‐PERSONNEL COSTS10,931,700    13,671,700    14,041,494    14,648,276    15,283,249    15,949,118    16,647,406    17,379,714        18,147,720       18,953,186    10‐SHERIFF7,140,000       7,872,000       8,147,520       8,473,421       8,812,358       9,164,852       9,531,446       9,912,704          10,309,212       10,721,580     11‐PROF/TECH SERVICES‐OTHER4,383,700       4,717,700       4,812,054       4,908,295       5,006,461       5,106,590       5,208,722       5,312,896          5,419,154          5,527,537       11.2‐PROF/TECH SERVICES‐OTHER ‐ CITY CLERK ELECTION145,800          0 150,000          0 150,000          0 150,000          0150,000             0 12‐UTILITY SERVICES926,400          993,400          1,013,268       1,033,533       1,054,204       1,075,288       1,096,794       1,118,730          1,141,104          1,163,926       13‐MAINTENANCE SERVICES2,888,800       3,445,900       2,843,499       2,900,369       2,958,376       3,017,544       3,077,894       3,139,452          3,202,241          3,266,286       14‐OTHER SERVICES621,100          784,200          799,884          815,882          832,199          848,843          865,820          883,137             900,799             918,815          15‐INSURANCE703,100          675,000          688,500          702,270          716,315          730,642          745,255          760,160             775,363             790,870          16‐OPERATING SUPPLIES / MINOR EQUIPMENT455,700          548,900          636,072          648,793          661,769          675,004          688,505          702,275             716,320             730,647          17‐CAPITAL PROJECTS1,310,000       25,000            ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ 18‐CAPITAL‐EQUIPMENT/VEHICLES79,000            1,000              1,000              1,000              1,000              1,000              1,000              1,000 1,000 1,000              25‐INTERFUND CHARGES290,900          246,900          251,838          256,875          262,012          267,253          272,598          278,050             283,610             289,283          31‐OTHER USES709,700          531,800          531,800          531,800          531,800          531,800          531,800          531,800             531,800             531,800          TOTAL EXPENDITURES, BY ACCOUNT GROUP30,585,900    33,513,500    33,916,929    34,920,513    36,269,744    37,367,934    38,817,240    40,019,917        41,578,325       42,894,931    % ANNUAL CHANGE 18.1% 9.6% 1.2% 3.0% 3.9% 3.0% 3.9%3.1%3.9% 3.2%C-1 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFORECAST SUMMARY< SELECT FUND2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032FEXPENDITURES (BY DEPARTMENT)01‐CITY ADMINISTRATION 4,398,800       5,100,200       5,298,973       5,318,410       5,644,455       5,677,612       6,018,200       6,066,557          6,423,034          6,488,002       02‐PUBLIC SAFETY 7,633,900       8,249,000       8,530,107       8,866,604       9,216,504       9,580,345       9,958,683       10,352,101        10,761,201       11,186,612     03‐FINANCE 1,420,700       1,564,400       1,606,483       1,672,973       1,742,409       1,815,098       1,891,196       1,970,870          2,054,294          2,141,650       04‐PUBLIC WORKS 6,269,700       7,871,800       7,554,818       7,774,723       8,002,383       8,238,517       8,483,489       8,737,683          9,001,495          9,275,346       05‐COMMUNITY DEVELOPMENT3,746,100       4,327,600       4,440,093       4,603,986       4,774,589       4,952,625       5,138,444       5,332,412          5,534,911          5,746,344       06‐RECREATION & PARKS3,553,600       4,072,700       4,194,675       4,359,862       4,532,432       4,712,884       4,901,595       5,098,963          5,305,403          5,521,353       07‐NON‐DEPARTMENTAL3,563,100       2,327,800       2,291,781       2,323,956       2,356,971       2,390,854       2,425,631       2,461,332          2,497,986          2,535,624       TOTAL EXPENDITURES, BY DEPARTMENT30,585,900    33,513,500    33,916,929    34,920,513    36,269,744    37,367,934    38,817,240    40,019,917        41,578,325       42,894,931    ‐                   CURRENT SURPLUS/(DEFICIT) ‐ BEFORE TRANSFERS7,092,900       5,011,300       5,101,266       4,995,532       4,592,138       4,472,551       4,035,858       3,881,093          3,407,241          3,209,978       % ANNUAL REVENUES & SOURCES18.8% 13.0% 13.1% 12.5% 11.2% 10.7% 9.4%8.8%7.6% 7.0%TRANSFERS‐IN15‐TRANSFERS‐IN 300,000          270,000          260,000          260,000          260,000          260,000          260,000          260,000             260,000             260,000          TRANSFERS‐OUT08‐TRANSFERS‐OUT 7,758,800       4,566,000       4,146,704       3,715,289       3,409,000       3,089,317       2,755,698       2,407,581          2,044,378          1,586,983       TOTAL REVENUE & TRANSFERS‐IN 37,978,800     38,794,800     39,278,194     40,176,045     41,121,882     42,100,485     43,113,097     44,161,010        45,245,565       46,364,909     TOTAL EXPENDITURES & TRANSFERS‐OUT 38,344,700     38,079,500     38,063,633     38,635,802     39,678,744     40,457,251     41,572,938     42,427,497        43,622,703       44,481,915     TOTAL SURPLUS/(DEFICIT) (365,900)         715,300          1,214,562       1,540,243       1,443,138       1,643,234       1,540,159       1,733,513          1,622,862          1,882,994       FUND BALANCE‐BEGINNING30,729,000    30,363,100    31,078,400    32,292,962    33,833,205    35,276,343    36,919,577    38,459,736        40,193,249       41,816,111    FUND BALANCE PER TAB 12‐FUND BALANCESFUND BALANCE‐END30,363,100    31,078,400    32,292,962    33,833,205    35,276,343    36,919,577    38,459,736    40,193,249        41,816,111       43,699,106    VARIANCE TO TAB 12‐FUND BALANCESC-2 CITY OF RANCHO PALOS VERDES, CA ‐ ALL FUNDSINDEXFORECAST SUMMARY< SELECT FUND2023E 2024B 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032FREVENUES (BY ACCOUNT TYPE)10‐LICENSES & PERMITS‐                    ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   14‐CHARGES FOR SERVICES‐PW‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   15‐CHARGES FOR SERVICES‐RECREATION‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   16‐FINES & FORFEITURES‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   17‐INTEREST EARNINGS748,704          ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   17.3‐INTEREST EARNINGS ‐ FUND 330 INFRASTRUCTURE 472,130          502,000          512,040          522,281          532,726          543,381          554,249          565,334             576,640             588,173          18‐LEASE & RENTAL INCOME‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   19‐DONATIONS & DEVL FEES‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   20‐CHARGES FOR SERVICES‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   21‐MISCELLANEOUS REVENUES‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   TOTAL REVENUES1,220,834       502,000          512,040          522,281          532,726          543,381          554,249          565,334             576,640             588,173          % ANNUAL CHANGE‐263.1%‐58.9% 2.0% 2.0% 2.0% 2.0% 2.0%2.0%2.0% 2.0%EXPENDITURES (BY ACCOUNT TYPE)17.08‐CAPITAL PROJECTS ‐ FUND 330‐                   0                      8,491,500       11,110,000     14,198,000     6,750,000       9,644,480       9,644,480          9,644,480          9,644,480       17‐CAPITAL PROJECTS 11,273,132     7,672,900        ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   18‐CAPITAL‐EQUIPMENT/VEHICLES423,577          ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   20‐DEBT‐PRINCIPAL734,025          745,478          760,239          775,292          790,642          806,297          822,262          838,542             855,146             872,078          21‐DEBT‐INTEREST159,000          143,866          129,106          114,053          98,702            83,048            67,083            50,802               34,199               17,267            TOTAL EXPENDITURES, BY ACCOUNT GROUP12,589,734    8,562,245       9,380,845       11,999,345    15,087,345    7,639,345       10,533,825    10,533,825        10,533,825       10,533,825    % ANNUAL CHANGE 1765.7%‐32.0% 9.6% 27.9% 25.7%‐49.4% 37.9%0.0%0.0% 0.0%EXPENDITURES (BY DEPARTMENT)01‐CITY ADMINISTRATION‐                    ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   02‐PUBLIC SAFETY‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   03‐FINANCE‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   04‐PUBLIC WORKS12,589,734     8,562,245       9,380,845       11,999,345     15,087,345     7,639,345       10,533,825     10,533,825        10,533,825        10,533,825     05‐COMMUNITY DEVELOPMENT‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   06‐RECREATION & PARKS‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   07‐NON‐DEPARTMENTAL‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   TOTAL EXPENDITURES, BY DEPARTMENT12,589,734    8,562,245       9,380,845       11,999,345    15,087,345    7,639,345       10,533,825    10,533,825        10,533,825       10,533,825    ‐                   CURRENT SURPLUS/(DEFICIT) ‐ BEFORE TRANSFERS(11,368,900)   (8,060,245)     (8,868,805)     (11,477,064)   (14,554,618)   (7,095,964)     (9,979,576)     (9,968,491)        (9,957,184)        (9,945,652)     % ANNUAL REVENUES & SOURCES‐931.2%‐1605.6%‐1732.1%‐2197.5%‐2732.1%‐1305.9%‐1800.6%‐1763.3%‐1726.8%‐1690.9%TRANSFERS‐IN15‐TRANSFERS‐IN 7,293,800       4,421,000       3,943,704       3,650,289       3,344,000       3,024,317       2,690,698       2,342,581          1,979,378          1,521,983       TRANSFERS‐OUT08‐TRANSFERS‐OUT‐                    ‐                   ‐                   ‐                   ‐                   ‐                   ‐                   ‐                      ‐                     ‐                   TOTAL REVENUE & TRANSFERS‐IN8,514,634       4,923,000       4,455,744       4,172,570       3,876,726       3,567,698       3,244,947       2,907,914          2,556,019          2,110,156       TOTAL EXPENDITURES & TRANSFERS‐OUT12,589,734     8,562,245       9,380,845       11,999,345     15,087,345     7,639,345       10,533,825     10,533,825        10,533,825        10,533,825     TOTAL SURPLUS/(DEFICIT)(4,075,100)     (3,639,245)     (4,925,101)     (7,826,775)     (11,210,618)   (4,071,647)     (7,288,878)     (7,625,910)         (7,977,806)        (8,423,668)     FUND BALANCE‐BEGINNING38,115,030    34,039,930    30,400,686    25,475,585    17,648,810    6,438,192       2,366,545       (4,922,333)        (12,548,243)      (20,526,049)   FUND BALANCE PER TAB 12‐FUND BALANCESFUND BALANCE‐END34,039,930    30,400,686    25,475,585    17,648,810    6,438,192       2,366,545       (4,922,333)     (12,548,243)      (20,526,049)      (28,949,717)   VARIANCE TO TAB 12‐FUND BALANCESC-3