CC SR 20260602 03 - FY 2026-27 Financial Model
CITY COUNCIL MEETING DATE: 06/02/2026
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consider the Fiscal Year (FY) 2026-27 Financial Model.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file the Fiscal Year 2026-27 Financial Model for the General Fund
and all other Special Funds.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: James O'Neill, Senior Administrative Analyst JO
REVIEWED BY: Robert Moya, Deputy Director of Finance RM
Vina Ramos, Director of Finance VR
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. General Fund Financial Model for FY 2026-27 (page A-1)
B. Special Funds Financial Model for FY 2026-27 (page B-1)
BACKGROUND:
City Council Policy 18, adopted on September 21, 1993 and revised on April 20, 2021,
states that “it shall be the policy of the City Council that the Five-Year Financial Model be
analyzed, updated and reviewed annually as part of the City budget process.”
In FY 2021-22, the original Five-Year Financial Model was expanded to 10 years and has
since been referred to as “the 10-Year Model” (Model). Furthermore, a sensitivity analysis
component was added to the Model in response to post-pandemic economic uncertainty.
The Model continues to be refined annually to incorporate City Council direction and
evolving financial conditions.
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. It is used
annually to establish a baseline long-term forecast of revenues, expenditures and fund
1
balances which is used to evaluate the fiscal impact of various programmatic or financial
alternatives under consideration.
FY 2026-27 Financial Model Format
The baseline forecast for FY 2026-27 was established utilizing historic revenues and
expenditures, year-end estimates for FY 2025-26 and the projected June 30, 2026 fund
balance, along with key economic input factors and forecast assumptions. The forecast
and Budget Assumptions for the General Fund was presented to the City Council at the
General Fund Budget Workshop on April 20, 2026. The Model illustrates the City’s long-
term financial position and supports the development of a structurally balanced operating
budget to comply with City Council Policy 45.
The Model is organized and presented using the following reports:
▪ The 10-Year forecast (Attachment A), including FY 2025-26 through 2034-35 for
the General Fund (Fund 101); and
▪ The Five-Year forecast (Attachment B), including FY 2025-26 through 2030-31 for
all other funds
While the forecast for the General Fund projects revenues and expenditures through FY
2034-35, the forecast for Special Funds is limited to five years due to uncertainty
associated with longer-term projections. These forecasts are intended to provide a
broader view of the City’s long-term financial outlook.
The General Fund balance is divided into two parts, as follows:
▪ A Restricted Balance, which is defined by City Council Policy 41 as a minimum
fund balance of at least 50 percent of the annual recurring operating expenses in
the General Fund; and
▪ The Unrestricted Balance or Unallocated Fund Balance.
Special Funds consist of both Council-designated funds and legally restricted funds
established for specific purposes.
There are two types of Special Funds:
• Funds restricted by City Council action. These accounts are funded by transfers
from the General Fund for a specific purpose and may be transferred back to the
General Fund or used for other purposes at the discretion of the City Council .
These include:
o Capital Infrastructure Projects (CIP) Fund (Fund 330);
o Employee Pension Service Fund (Fund 682); and
o Equipment Replacement Fund (Fund 681)
• Funds restricted by law or external agencies. Expenditures charged to these
accounts must meet the terms and conditions set by legislation and voter ballot
measures, as they are restricted by law or external agencies, such as the federal
government, State of California, or Los Angeles County. Examples of these types
of Funds include:
2
o Gas Tax (Funds 202 and 204)
o Proposition A (Fund 216)
o Proposition C (Fund 215)
o American Rescue Act Plan (ARPA) (Fund 331)
o Measure R (Fund 220)
o Measure M (Fund 221)
o Measure W (Fund 343)
An overview of the development process and analysis of the 10-Year Forecast is detailed
in the discussion section below.
DISCUSSION:
Model Development Process
As part of the FY 2026-27 budget development process, Finance Staff updated the Model
to prepare for the General Fund Budget Workshop on April 20, 2026. Mid-year revenues
and expenditures were added to analyze actual performance against the revised budget.
Staff also reviewed historical data alongside industry trends and economic indicators to
produce the General Fund budget assumptions, FY 2025-26 year-end estimates, and the
FY 2026-27 Budget Assumptions.
For the preliminary budget, being presented separately at tonight’s meeting, direction
provided by City Council at the budget workshops on April 20, May 4 and May 18 have
been incorporated; including:
April 20, 2026 General Fund Budget Workshop:
1. Affirmed Budget Assumption Revenues of $42.5 million;
2. Affirmed Budget Assumption Transfers-In of $320,000;
a. $240,000 from Public Safety Grant Fund
b. $80,000 from Measure A Los Angeles Open Space Grant
3. Affirmed Budget Assumption Expenditures of $38.0 million;
a. Personnel of $16.3 million
b. Non-personnel of $21.7 million
4. Affirmed Budget Assumption Transfers-Out of $3.8 million;
a. $3.4 million to CIP Fund for capital maintenance and improvements
b. $215,000 to the Habitat Restoration Fund
c. $55,000 to Sub-region One Fund
d. $50,000 to Abalone Cove Sewer Fund
e. $15,000 to Improvement Authority for Portuguese Bend
5. Affirmed Budget Assumption Additional Transfers-Out of $1.1 million to CIP Fund
for unallocated FY2026-27 funds;
6. Affirmed Budget Assumption Additional Transfers-Out of $2.6 million;
a. $1.3 million to CIP Fund
b. $889,500 to CIP Fund for Ladera Linda Community Park loan payment
c. $400,000 to the Employee Pension Service Fund
3
May 4, 2026 Capital Improvement Program Budget Workshop:
7. Proceed with analysis and project planning as described in Scenario 2a, where no
grant funding is available;
8. Review the landslide emergency measures and other capital improvement projects
to identify cost saving measures while prioritizing “yellow” projects;
9. Identify potential General Fund savings that could be transferred to support CIP
priority projects;
10. Review City Council policies for potential use of CIP and General Fund reserves;
11. Evaluate potential new and near-term fiscal sustainability sources for the City;
May 18, 2026 Capital Improvement Program Budget Workshop:
12. Reduce personnel by $200,000;
a. $154,000 by deferring two vacant positions in Community Development
b. $41,000 by deferring one vacant position in Public Safety
13. Reduce non-personnel by $300,000;
a. $110,000 by deferring 50% of Equipment Replacement Charges
b. $75,000 by freezing Neighborhood Beautification and Western Avenue
Storefront Improvement grants
c. $50,000 by reducing special events
d. $125,000 by reducing Maintenance and Operations
e. Adding $60,000 for additional maintenance in Aqua Amarga Canyon to
allow for deferral of CIP project 8272
14. Affirmed Additional Transfers of $2.5 million to the CIP Fund;
a. $2 million from General Fund Unallocated Fund Balance
b. $500,000 from General Fund budget reductions outlined in items 12 and 13
above
This process resulted in the FY 2026-27 Preliminary Budget, forming the Model’s baseline
forecast and long-term outlook for all City funds in advance of budget adoption.
Forecast Assumptions
The assumptions listed in Table 1 highlight the long-term growth rates used to develop
the baseline forecast from FY 2026-27 through FY 2034-35. Staff reviews and updates
these rates annually based on historic data, current trends, and economic activity related
to the City’s major revenue and expenditure categories. Any significant changes to the
assumptions, if material, are discussed in greater detail in the sections below.
Continued on Next Page
4
Table 1. Economic Model Input Factors
Pay-As-You-Go Approach
The City has a longstanding tradition of utilizing a pay-as-you-go approach to fund both
City operations and capital maintenance and improvements. This reflects the City’s
general practice of maintaining a low-tax city, where debt financing and additional taxes
or fees are not the primary methods for funding capital infrastructure needs. This
approach relies heavily on the use of Special Revenue and Grant Funds for capital
projects and when funds are available from the General Fund. Like many other
municipalities, the pay-as-you-go approach would typically result in capital infrastructure
needs being deferred beyond their intended service life. To address capital infrastructure
needs in a timely manner, many municipalities utilize a combination of funding method s,
including debt financing, dedicated user and service charge fees, development impact
fees, additional tax revenues, municipal bonds, and assessment districts.
As presented throughout the budget process, the General Fund is projected to remain
structurally balanced over the City’s 10-year Financial Model, consistent with City Council
Policy No. 45, Balanced Operating Budget. While the General Fund operations are
projected to remain balanced, the Transfers-out to CIP Fund is projected to decline due
to expenditure growth anticipated to continue outpacing revenue growth. The modeling
signals ongoing fiscal discipline and careful evaluation of future funding sources and
priorities.
Continued reliance on the pay-as-you-go approach for capital maintenance and
improvement projects through General Fund Transfers-Out, Special Revenue Funds, and
grant funding, without additional or alternative revenue sources, may not be sufficient to
fully address the City’s long-term capital needs in a timely manner. Based on City Council
guidance to assume no additional grant funding for landslide projects and continued
emergency stabilization at current levels as funding allows, the City is estimated to have
$86.4 million in potentially unfunded projects. As such, in addition to expenditure
2026YEE 2027BA 2028F 2029F 2030F 2031F 2032F 2033F 2034F 2035F
REVENUES
PROPERTY TAX 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6%
TRANSIENT OCCUPACY TAXES 5.0% -2.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
SALES TAX 1.5% 1.7% 2.0% 2.3% 2.3% 2.3% 2.3% 2.3%
FRANCHISE TAX 2.5% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%
UTILITY USERS TAX 2.5% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%
PERMIT REVENUES 2.7% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4%
INVESTMENT INTEREST 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
EXPENDITURES
NON-PERSONNEL EXPENDITURES 2.4% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%
PERSONNEL EXPENDITURES 7.5% 6.5% 6.5% 6.0% 6.0% 5.5% 5.5% 5.5%
HEALTH INSURANCE 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
PERS NORMAL COSTS 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4%
SHERIFF CONTRACT 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
PREPARED
OUTSIDE OF THE
MODEL
FORECAST ASSUMPTIONS - 2026 FINANCIAL MODEL
FY 2025-26 YE EST.
AND FY 2026-27
BUDGET
ASSUMPTIONS
PREPARED
OUTSIDE OF THE
MODEL
5
reductions, the City continues to explore new and additional revenue streams to support
future capital projects for future City Council consideration.
The FY 2026-27 budget process also emphasized the City’s continued commitment to
maintaining critical infrastructure and addressing community priorities identified through
the recent Community Needs Survey, including maintaining roads, preparing for and
responding to natural disasters, reducing wildfire risks, preventing property crimes, and
continuing landslide mitigation and stabilization efforts.
General Fund Revenue Assumptions
Property Tax
Property tax remains the primary and most stable source of revenue in the General Fund.
The FY 2026-27 preliminary budget anticipates total property tax revenue of
approximately $19 million, reflecting a $790,000 (4.3%) increase over the FY 2025-26
year-end estimate of $18.2 million. This growth is driven by a combination of factors,
including the 2.0% inflation adjustment under the California Consumer Price Index,
ongoing property sales and transfers adding $393 million in reassessed value, and
continued residential construction and improvements. The estimate incorporates Citywide
trends and localized impacts, including the effects of Proposition 8 reductions and the
anticipated FEMA/CalOES-funded voluntary property buyout program within the
Portuguese Bend Landslide Complex which is approximately $110,000 potential impact.
The City’s strong housing market and regional demand support stable assessments, and
Rancho Palos Verdes is expected to see a 4.17% increase in overall assessed valuation
in FY 2026-27. For purposes of long-range financial forecasting, property tax revenues
are assumed to grow at an average annual rate of 4.6%, aligning with the City’s long-term
revenue trends observed over both the past decade and the more recent five-year period.
Transient Occupancy Tax (TOT)
TOT remains the second-largest revenue source in the General Fund, at a tax rate of
10%, with 98% of collections generated by Terranea Resort. The FY 2026-27 preliminary
budget conservatively projects TOT revenue at under $6.9 million, a $100,000 (1.4%)
decrease from the FY 2025-26 year-end estimate of over $6.9 million. This decrease is
based on Terranea’s projected room revenue of $68.7 million for calendar year 2025, with
a conservative downward adjustment of approximately 4% to account for broader
economic uncertainties and evolving travel trends. While recent landslide activity near the
Portuguese Bend area raised concerns, there has been no evidence of material impact
on resort operations, occupancy rates, or collections. Los Angeles County ’s tourism
sector has largely rebounded to pre-pandemic levels, a projected decline in international
travel and broader economic uncertainty temper growth expectations. Within this context,
Rancho Palos Verdes continues to benefit from its position as a premier coastal
destination, attracting both domestic and international visitors seeking high-end
accommodations.
6
Looking ahead, TOT revenue growth is projected at 5% in 2028 in anticipation of
heightened tourism activity surrounding the 2028 Olympic Games, followed by a 2%
decline in 2029, and a modest 1% growth thereafter. This conservative long-term forecast
balances recent performance with broader economic uncertainty, potential shifts in travel
behavior, and the City's position within a competitive regional hospitality market. While
current trends remain strong, this approach helps ensure the City plans responsibly for
the future.
Sales Tax
With a rate for the City of 10.25%, Sales and Use Tax revenues are projected at slightly
more than $3.0 million for FY 2026-27, equaling the FY 2025-26 year-end estimate. This
conservative forecast is based on local sales trends and analysis from the City’s sales
tax consultant, HdL. While the City’s taxable sales base remains relatively stable, broader
economic factors, including elevated interest rates, reduced discretionary spending, and
softening in key sectors like fuel, building materials, and durable goods , are expected to
temper growth. Rancho Palos Verdes’ largely residential character and limited
commercial presence continue to constrain sales tax revenue when compared to
neighboring jurisdictions. Although Measure A, approved by Los Angeles County voters
in November 2024, increased the countywide sales tax rate, the proceeds are allocated
to the County and do not generate additional revenue for the City. For long-term financial
planning, sales tax revenue is forecasted to remain flat at 2.5 % annual growth, with a
temporary increase to 3% in 2028 in anticipation of heightened consumer spending and
regional activity tied to the Olympic Games. This cautious outlook provides room for
adjustments based on future market trends and statewide policy shifts, which staff will
continue to monitor closely.
Permits and Fees
Permits and Fees revenues are projected to reach approximately $4.6 million in FY 2026-
27, representing an increase of $104,000 (2.3%) over the FY 2025-26 year-end estimate.
This growth is primarily driven by sustained demand for building and safety permits, plan
check services, and business licenses, reflecting a healthy pace of development and
compliance activity throughout the City. While revenues from ca tegories such as animal
licenses and temporary permits remain relatively flat, the overall outlook signals a stable
environment. On May 19, 2026, the City Council approved a Consumer Price Index (CPI)
increase and other adjustments to the Master Schedule of Fees and Fully Burdened
Hourly Rate Schedule for the upcoming fiscal year, contributing approximately $121,000
to the revenue projection. For long-term financial planning purposes, Permits and Fees
revenues are assumed to grow by 2.7% for FY 2027-28 and at an average annual rate of
2.4% for subsequent years, reflecting historical development activity and aligning with
past revenue performance trends.
Franchise Tax
Franchise Tax revenues are projected to rise slightly to $2.6 million for FY 2026-27, up
slightly from the FY 2025-26 year-end estimate. These revenues are generated from
7
payments made by franchisees such as EDCO, Southern California Edison, Cox
Communications, and Southern California Gas Company for the use of the City’s public
rights-of-way. Estimates are based on historical trends, current industry performance, and
existing franchise agreements. Staff continue to monitor regional utility activity and
regulatory developments that could affect future revenues. In alignment with the best
regional practices, the City is also reviewing its franchise agreements to ensure they
reflect infrastructure usage, evolving service demands, and long-term fiscal sustainability.
For forecasting purposes, Franchise Tax revenues are assumed to grow at an average
annual rate of 2.3% over the long term, after an estimated 2.5% increase for FY 2027-28,
based on historical performance and anticipated adjustments to service agreements and
utility infrastructure demand.
Utility Users Tax (UUT)
UUT revenues are conservatively projected at $2.9 million for FY 2026-27, a significant
increase of $467,800 (19.0%) over the FY 2025-26 Revised Budget, yet a slight decrease
from the FY 2025-27 year-end estimate. Revenues are influenced by factors such as
weather patterns, energy market volatility, and consumption trends across electricity, gas,
and water services.
In accordance with RPV Municipal Code Section 3.30.190, the City Council continued the
rate of 3% for UUT for FY 2026-27 as part of the direction given to Staff on April 20, 2026.
For long-term planning purposes, UUT revenues are projected to grow at an average
annual rate of 2.3%, consistent with historical trends and supported by expected
stabilization in utility usage and rate structures over time. Staff will continue to monitor
energy consumption patterns and evolving conditions in impacted areas to update
revenue forecasts as new information becomes available.
Investment Interest
Despite strong rates of return and prudent investment practices, interest earnings for the
General Fund have declined due to lower investment balances as the City utilizes General
Fund balance for ongoing expenses. The FY 2025-26 year-end estimate stands at
approximately $1.2 million, and Interest Earnings revenue is projected to be under $1.1
million, following this declining trend. In accordance with the City’s annual investment
policy, available cash is invested with a focus on safety, liquidity, and yield. Projections
for future years remain conservative, assuming a 2.0% growth rate over the long term to
account for potential market fluctuations and changing economic conditions.
Revenue Summary
General Fund operating revenues are projected to reach $42.5 million in FY 2026-27, and
$42.8 million with transfers. Revenue assumptions for future years will continue to be
monitored and adjusted based on the annual analysis of financial indicators.
8
General Fund Expenditures
Non-Personnel Expenditures
Non-personnel expenditures are budgeted at approximately $21.4 million for FY 2026-
27. This reflects a reduction of $300,000 from the Budget Assumptions presented at the
General Fund Budget Workshop on April 20, per the approval by City Council at the
Budget Workshop on May 18.
This category includes costs for public safety contracts, legal services, consulting,
maintenance, utilities, and other operational needs. The long -term forecast shows a
tapering trend in the growth rate, starting at 2.4% in FY 2027-28 and maintaining a 2.3%
growth rate for subsequent years. This reflects a conservative approach based on
expectations that spending will stabilize as temporary cost drivers ease. The higher
growth rate in FY 2027-28 accounts for lingering operational demands and the continued
use of outside professional services. As City staffing levels return to normal, reliance on
external consultants is expected to decrease. This shift supports the lower projected
growth in later years and helps bring expenditures more in line with historical spending
patterns. Over the past five years, non-personnel costs have grown by an average of
4.8% per year. Most of this increase was tied to higher professional and technical service
costs during periods of key vacancies. With those positions now filled and one -time
pressures behind us, future spending in this category is expected to follow a steadier and
more manageable pace.
Personnel Expenditures
Personnel costs are estimated at approximately $16.1 million in FY 2026-27. This reflects
the $200,000 reduction approved by City Council on May 18 from the Budget
Assumptions presented at the General Fund Workshop on April 20. The Preliminary
Budget represents 42.9% of the proposed General Fund operating budget before
transfers out. This marks an increase of $0.2 million (1.5%) from the FY 2025-26 revised
budget. The estimate includes salaries and benefits for full-time and part-time staff,
interns, and stipends for City Council and Planning Commissioners. For long-range
forecasting, personnel expenditures are projected to grow by 7.5% in FY 2027-28 and
taper to 5.5% by FY 2034-35. The higher growth rates in the short-term account for
anticipated increases tied to labor agreements with employee groups and taper to reflect
a conservative outlook while accounting for cost-of-living adjustments and historical
compensation trends. This approach provides flexibility to adjust for future labor
negotiations while maintaining fiscal stability in the long term.
Health Insurance
Health insurance costs are based on the City’s annual premiums for medical, dental, and
vision coverage. These costs are tracked separately in the forecast model to better
assess long-term benefit obligations. The forecast assumes a 5.0% annual growth rate,
which reflects historical trends and helps ensure more accurate long-range projections.
9
CalPERS Normal Cost
The California Public Employees' Retirement System (CalPERS) sets the rates for all
participating employers to calculate the costs of benefits (Normal Cost) for active full-time
employees. This annual expenditure is calculated based on current staffing levels and the
estimated payroll to account for future benefits. Table 2 below shows the projected
expenditures for the City’s Normal Cost, which is calculated for FY 2026-27 and projected
as a 5.4%, growth which aligns with previous expenditure growth and the payroll
assumption rate used by CalPERS.
Table 2. Model Data - Projected Future Employer Contributions (in dollars)
Normal Cost Rate - All Plans
2025-26 2026-27 2027-28 2028-29 2029-30
$695,745 $737,470 $777,293 $819,267 $863,508
2030-31 2031-32 2032-33 2033-34 2034-35
$910,137 $959,284 $1,011,086 $1,065,684 $1,123,231
Unfunded Accrued Liability
Separate from the City’s Normal Cost, described above, the City is required to make
annual payments to pay off the City’s accumulated unfunded portions of pension costs
accumulated over prior years, referred to as its Unfunded Accrued Liability (UAL). These
minimum payments are determined by CalPERS’ amortization schedule and are provided
by CalPERS in the Annual Valuation Report (AVR) provided to the City annually.
CalPERS annually provides the City with an AVR that identifies the City’s UAL balance,
as of June 30th of the previous year, as well as the UAL payment for the upcoming fiscal
year and projected payments for the next four fiscal years.
The July 2025 AVR reported the City’s total UAL balance (across all tiers - Tier 1, Tier 2,
and PEPRA/Tier 3) was $17.7 million, which is affected by the market value of assets and
therefore the rate of return on the investment of those assets. (CalPERS utilizes a 6.8%
rate of return for its forecasts, and future payment amounts are adjusted as actual rates
of return are realized.) The balance reflects a 1.3% decrease from the $17.9 million
reported the previous year and is attributed to higher-than-expected investment returns
and updated actuarial assumptions. And although the amount of the City’s Accrued
Liability rose, the Market Value of Assets outpaced that rise, and the City’s funded Ratio
rose from 69.8% to 71.9%. The City’s Pension Plan Guidelines lists a Goal of achieving
and maintaining a 90% funded ratio by 2030-31.
The July 2025 AVR also provided an updated projected UAL payment schedule, which is
reflected in Table 3 below. These amounts assume no additional discretionary payments
are made by the City, which has the option to make larger payments to further reduce the
City’s UAL.
10
Table 3. Projected Minimum UAL Payments
FY2026-27 Projected
FY2027-28 FY2028-29 FY2029-30 FY2030-31 FY2031-32
From 2024 AVR $1,680,864 $1,754,000 $1,918,000 $1,933,000 $1,943,000 $1,980,000
As UAL payments are with $900,000 from the General Fund, and the balance from the
Employee Pension Service Fund (Fund 682), Staff will be updating the Model for future
iterations to better reflect CalPERS projections. It is also worth noting that CalPERS
reported a 12.1% investment return for FY 2024-25, which exceeds the long-term
assumed rate of 6.8%. This reported return is expected to be reflected in the AVR
anticipated to be received in July or August 2026 and is expected to reduce the City’s
UAL balance, increase the City’s funded ratio, and reduce projected minimum UAL
payments for FY 2027-28 and beyond.
Table 4 below summarizes the anticipated UAL payments from FY 2026-27 through FY
2034-35 based on current actuarial data and assumptions.
Table 4. Model Data - Projected UAL Payments
UAL Payments - All Plans
2025-26 2026-27 2027-28 2028-29 2029-30
$1,510,617 $1,680,864 $1,645,000 $1,840,000 $1,885,000
2030-31 2031-32 2032-33 2033-34 2034-35
$1,922,000 $1,960,000 $1,950,000 $1,938,000 $1,906,000
Los Angeles County Sheriff’s Contract
The City’s contract with the Los Angeles County Sheriff’s Department (LASD) is budgeted
at approximately $8.9 million for FY 2026-27. This accounts for roughly 21.4% of the
General Fund operating budget assumptions before transfers and supports the
continuation of the City’s current level of public safety services. The increase reflects the
finalized FY 2026-27 law enforcement cost model released by the Auditor-Controller,
which includes a 2.3% rate increase for a Deputy Sheriff Service Unit, and 2.14% for a
Bonus-I Deputy. Additionally, the liability surcharge increased from 13.0% to 14.5%. Per
the City’s five-year joint agreement approved in June 2024, Rancho Palos Verdes is
responsible for 68% of the total contract, with 28% allocated to Rolling Hills Estates and
4% to Rolling Hills.
The long-term financial model assumes an average annual growth rate of 4% for LASD
contract costs, consistent with historical trends and cost drivers such as labor negotiations
and liability rates. Since FY 2017-18, the City has used actual TOT revenue net of LASD
cost increases to guide General Fund transfers to the CIP Fund. However, during budget
workshops, the City reviews the year’s performance and any revenues exceeding
expenditures are used to replenish the CIP Fund. Over the past five fiscal years, General
Fund Transfers-Out to the CIP Fund are projected at approximately $3 9.2 million
11
compared to approximately $33.1 million in projected TOT revenues from Terranea
Resort, reflecting the City Council’s continued investment in capital maintenance,
infrastructure improvements, and emergency response needs. In FY 2026-27 Preliminary
Budget, proposed Transfers-Out exceed the projected TOT revenue by 37%.
As the City uses a pay-as-you-go approach, the CIP Fund continues reliance on General
Fund transfers to support capital infrastructure needs. However, the Model shows that
capacity of General Fund to transfers is declining as expenditure pressures continue to
grow. While no formal action was taken in FY 2025-26, the Finance Advisory Committee
(FAC) continues to monitor the long-term feasibility of using TOT revenue to offset rising
public safety costs.
Expenditures Summary
General Fund operating expeditures for FY 2026-27 are projected to be $37.5 million,
with a total of $41.3 million inclusive of annual transfers-out. As is the case with revenues,
Staff will continue to monitor trends and report any material updates if warranted.
10-Year Forecast
Chart 1 below graphically depicts the General Fund year-end estimates and projected
revenues and expenditures through FY 2034-35. As demonstrated, projected revenues
continue to exceed projected expenditures, excluding transfers, throughout the 10-Year
Forecast.
Chart 1. General Fund 10-Year Forecast (Excluding Transfers)
12
The City’s General Fund balance is affected by Transfers-In from, and Transfers-Out to,
Special Funds. Transfers-In are detailed in Table 5 below, with such transfers used for
expenditures that meet the requirements of those funding sources.
Table 5. FY 2026-27 General Fund Transfers In
FY 2025-26
Year-End
Estimate
FY 2026-27
Preliminary Budget
Transfer – from Public Safety Grant Fund $240,000 $240,000
Transfer – from Measure A Los Angeles
Open Space Grant
$80,000 $80,000
Total Transfers Out $320,000 $320,000
Transfers-Out are detailed in Table 6 below, with transfers authorized by City Council for
budgeting for specific purposes, including identifying funding for the City’s Capital
Improvement Program, annual maintenance charges, maintaining endowment
requirements, and supporting the Improvement Authority for Portuguese Bend.
The largest transfer is to the CIP Fund, historically calculated as a function of Transient
Occupancy Tax (TOT) revenue collected from the Terranea Resort minus the incremental
increases of contracting with the Los Angeles Sheriff Department since FY 2017-18.
Table 6. FY 2026-27 General Fund Transfers Out
FY 2025-26
Year-End Estimate
FY 2026-27
Preliminary Budget
Transfer – CIP $3,374,150 $3,425,800
Transfer – Habitat Restoration 170,000 215,000
Transfer – Subregion One
Maintenance
40,000 55,000
Transfer – Abalone Cove Sewer 20,000 50,000
Transfer – IA Portuguese Bend 15,000
Total Transfers Out $3,604,150 $3,760,800
Additional Transfers from Unallocated Fund Balance
Moreover, in accordance with the City Council Reserve Policy No. 41, the City may
transfer all or a percentage of the prior year’s unallocated balance from General Fund. At
the General Fund Budget Workshop on April 20, 2026 and May 18, 2026, the City Council
approved Staff’s recommendation for the following additional transfers:
▪ $1.1 million to the CIP Fund from unallocated FY2026-27 funds
▪ $3.8 million to the CIP Fund
▪ $889,500 to CIP Fund for Ladera Linda Community Park loan payment
▪ $400,000 to the Employee Pension Service Fund
13
Based on the annual and additional transfers, the total FY 2026 -27 Preliminary Budget
for General Fund Transfers-Out to the CIP Fund is $9.2 million. Of this amount, only $3.4
million is included in the Model as the remaining additional transfers are one-time and
non-recurring. This action item is subject to annual City Council approval and only affects
prior year’s unallocated fund balance.
Under current assumptions, Chart 2 illustrates that baseline revenues can support
baseline expenditures after including the estimated transfers-out through FY 2034-35.
Chart 3 shows the additional transfers to the CIP Fund using prior year’s unallocated fund
balance as allowed by the reserves policy.
As shown in the charts, it is important to note that expenditure continues to increase faster
than revenues and the gap is minimal, which decreases the City’s ability to transfer to the
CIP Fund in future years. Between fiscal years 2016 and 2024, operating revenues and
expenditures have grown at an average annual rate of 4% and 5.5%, respectively and
excluding transfers. As such, the model can be utilized to assess the fiscal impact of
additional programmatic changes.
Chart 2. General Fund 10-Year Forecast (Including Annual Transfers)
Continued on Next Page
14
Chart 3. General Fund 10-Year Forecast (Including $6.2 Million Additional
Transfers from Unallocated Fund Balance)
Based on the on the latest updates to revenues, expenditures, and transfers, the
estimated General Fund balance as of June 30, 2026 is approximately $33.4 million. A
10-year overview of the General Fund Balance from the Model is provided in Chart 4.
According to the long-term outlook under current assumptions, the total fund balance is
conservatively forecasted to grow year-over-year by an average rate of about 0.3%,
ending FY 2034-35 at approximately $32.1 million. While both the restricted and
unrestricted portions (unallocated fund balance) of the fund balance are projected to
increase over the forecast period, growth in the restricted balance is anticipated to
outpace the unallocated fund balance due to reserve requirements and planned transfers.
Continued on Next Page
15
Chart 4. Forecast of General Fund Balance
* Estimated Fund Balance in FY 2026-27 is $35 million, before additional transfers-out from prior year’s
unallocated balance. Unrestricted (blue bar) is the same as “Unallocated Fund Balance” and Restricted
(red bar) is the 50% City Council Policy No. 41 Reserves.
General Fund Sensitivity Analysis
Following direction from the City Council, staff continue to use the Financial Model as a
tool to evaluate hypothetical scenarios that may impact the long -term financial condition
of the City. The sensitivity analysis helps inform the Council of potential risks and
outcomes should key economic variables change significantly. The scenario below is for
illustrative purposes only and does not reflect the City’s current forecast.
At the recommendation of the Finance Advisory Committee (FAC), the Model
incorporates a sensitivity analysis by applying a hypothetical emergency that would
require significant spending from the unallocated fund balance of the General Fund;
specifically in the year 2030. Based on projected balances at the time of the April 20
General Fund Budget Workshop, Staff determined that the City could spend $13 million
of the unallocated fund balance while maintaining the 50% required of the reserve policy
through 2035. As approved on April 20 and May 18, the revised balances calculated
utilizing projected Transfers Out from the General Fund to the CIP Fund, the capacity to
address a Hypothetical emergency in 2030 while maintaining the reserve policy through
2035 dropped to approximately $6 million (was previously $13 million minus $6.2 million
of additional transfers mainly to the CIP Fund). This Hypothetical included a
reimbursement of 50% of that expenditure, or $3 Million, in the following year (2031), per
the direction from FAC. This analysis is shown on Chart 5 below.
Continued on Next Page
16
Chart 5. Hypothetical Emergency in 2030 (with partial reimbursement)
Additionally, Chart 6 below shows the same Hypothetical scenario without the
reimbursement in 2031. This chart demonstrates that $6 million is the maximum the City
could spend while continuing to meet the 50% reserve policy, with no subsequent
reimbursement from grants of other sources.
Chart 6. Hypothetical Emergency in 2030 (without reimbursement)
17
This scenario reinforces the importance of long-term fiscal discipline and the risks
associated with adding fixed costs without a dedicated revenue source. While
hypothetical, this analysis underscores the need for prudent decision-making and ongoing
monitoring of economic trends when considering service expansions or staffing
increases.
Capital Infrastructure Projects (CIP) Fund
The FY 2026-27 Preliminary Budget for all expenditures in the CIP Fund totals $12.1
million. This total includes $11.0 million in capital project costs, approximately $0.2 million
in personnel costs, and $0.9 million in loan payment. The forecast model for the CIP and
Special Revenue Funds is based on the City’s Five-Year CIP rather than a 10-year
projection, aligning with the five-year capital plan reviewed by the Infrastructure
Management Advisory Committee (IMAC), Planning Commission, and City Council to
ensure consistency across planning and oversight efforts.
The Model also provides a long-term forecast of revenues and expenditures for the CIP
Fund. This review highlights the status of the fund and the long -term implications on the
Fund Balance based on current assumptions. Table 7 shows projected revenues
alongside estimated expenditures. As seen in the table, expenditures significantly
outpace revenues through FY 2025-26, after which the trend reverses and expenditures
remain below revenues through FY 2029-30.
Table 7. CIP Revenue and Expenditure Forecast
18
Table 7 outlines projected revenues, expenditures, and fund balances from FY 2025-26
through FY 2030-31. The beginning fund balance in FY 2026-27 is $19.5 million, with
estimated revenues totaling $15.7 million, driven by TOT transfers, interest earnings, and
one-time funds including $6.4 million for landslide response and $1.2 million from the prior
year’s unallocated balance. Expenditures in FY 2024-25 are estimated at $29.1 million
due to major capital projects and loan disbursements, then decline significantly over the
forecast period. Revenues also taper off to approximately $6.5 million by FY 2029-30 as
grant funding and one-time transfers phase out. Despite early high spending, the
projected ending fund balance gradually recovers, with the restricted balance increasing
from $0.8 million in FY 2026-27 to $6.5 million by FY 2029-30.
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. Each year, Staff ensure special revenue
funds are utilized for qualified projects before CIP reserves are appropriated.
With respect to the Model’s forecast, it’s worth keeping in mind that some deficit balances
may result from the timing of grant reimbursements, available funding to be carried
forward, and projected revenues and expenditures that require ongoing review and
adjustments over the long-term. Based on the prior year’s review, the latest Model has
programmed future anticipated transfers and adjusted revenues and expenditures to
reduce deficit fund balances. As a result, any notable deficits will be further analyzed and
adjusted to ensure that future expenditures do not exceed revenues.
CONCLUSION:
The FY 2026-27 Model serves as a crucial decision-making tool for the City, offering a
comprehensive long-term financial outlook for use by the City Council and staff. Based
on this information, Staff utilizes the Model regularly, anticipating future needs and making
fiscal adjustments to avoid projected deficits. Also, due to a cautious budgeting approach,
historically, the General Fund’s revenues have exceeded approximately 5% of the
adopted budget, with a spending rate of 95% of the adopted budget. By consistently using
these strategies, the City has traditionally maintained financial stability.
Future operating revenues and expenditures for all funds will be monitored and adjusted
annually to ensure prudent spending and to minimize necessary subsidies from the
General Fund. While the General Fund will need to support several other funds, the
majority of restricted funds are expected to sustain annual operating expenses over the
next decade. These funds will be carefully monitored to ensure they maintain sufficient
funding levels.
While the General Fund is estimated to remain structurally balanced to comply with City
Council Policy 45 over the 10-year forecast based on projected prudent spending and
19
conservative revenue projections. Transfers-Out to the CIP Fund are projected to decline
over time as expenditures continue to outpace revenues. Existing funding sources may
not be sufficient to address the City’s long-term capital needs. As a result, as part of the
City Council Financial Sustainability Goal, the City continues to evaluate expenditure
reductions and additional revenue opportunities to continue to support future capital
projects.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action s are available for
the City Council’s consideration:
1) Direct Staff to develop alternative financial models for the City Council’s
consideration at a future meeting.
2)Take other action, as deemed appropriate.
20
CITY OF RANCHO PALOS VERDES, CA - WORK IN PROGRESS - ALL FUNDS
FUND SUMMARY
FUND TYPE 2026E 2027B 2028F 2029F 2030F 2031F 2032F 2033F 2034F 2035F
101-GENERAL FUND 1-REVENUES 42,462,048 42,502,450 44,310,469 45,418,317 46,819,021 48,282,435 49,796,880 51,362,573 52,994,014 54,687,636
2-EXPENDITURES 36,267,200 37,462,360 38,918,952 40,733,674 42,296,478 44,211,183 45,866,247 47,870,870 49,606,902 51,789,174
OPERATING SURPLUS/(DEFICIT) 6,194,848 5,040,090 5,391,517 4,684,642 4,522,543 4,071,252 3,930,633 3,491,703 3,387,113 2,898,463
3-TRANSFERS-IN 320,000 320,000 823,572 823,643 823,716 823,791 823,866 823,944 824,023 824,103
4-TRANSFERS-OUT 6,363,150 9,935,000 6,186,409 5,472,983 5,293,198 4,812,209 4,472,780 3,442,967 3,164,956 2,917,693
TRANSFERS NET (6,043,150) (9,615,000) (5,362,837) (4,649,340) (4,469,482) (3,988,418) (3,648,913) (2,619,023) (2,340,933) (2,093,590)
TOTAL OVER/(UNDER)151,698 (4,574,910) 28,680 35,302 53,061 82,833 281,720 872,680 1,046,180 804,872
BALANCE 33,422,365 28,847,455 28,876,135 28,911,438 28,964,499 29,047,332 29,329,052 30,201,732 31,247,912 32,052,785
POLICY RESERVE (50% EXPS.) 17,000,000 18,607,200 19,459,476 20,366,837 21,148,239 22,105,592 22,933,123 23,935,435 24,803,451 25,894,587
EXCESS/(DEFICIENCY)16,422,365 10,240,255 9,416,659 8,544,600 7,816,260 6,941,741 6,395,929 6,266,297 6,444,461 6,158,198
A-1
CITY OF RANCHO PALOS VERDES, CA - WORK IN PROGRESS - ALL FUNDS
FUND SUMMARY
FUND TYPE 2027B 2028F 2029F 2030F 2031F
202-GAS TAX 1-REVENUES 1,280,988 1,281,018 1,300,527 1,320,335 1,340,445
2-EXPENDITURES 2,543,570 908,384 927,828 947,719 968,067
OPERATING SURPLUS/(DEFICIT)(1,262,582) 372,635 372,700 372,616 372,378
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(1,262,582) 372,635 372,700 372,616 372,378
BALANCE 453,419 826,054 1,198,753 1,571,369 1,943,747
203-1972 ACT LANDSCAPE/LIGHT 1-REVENUES 414,460 414,481 414,502 414,523 414,545
2-EXPENDITURES 413,430 423,352 433,089 443,050 453,241
OPERATING SURPLUS/(DEFICIT)1,030 (8,872) (18,588) (28,527) (38,696)
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)1,030 (8,872) (18,588) (28,527) (38,696)
BALANCE 22,615 13,743 (4,845) (33,372) (72,068)
204-GAS TAX SB1 1-REVENUES 1,276,301 1,277,055 1,296,680 1,316,609 1,336,846
2-EXPENDITURES 4,172,105 1,802,676 528,142 2,348,734 1,054,455
OPERATING SURPLUS/(DEFICIT)(2,895,804) (525,620) 768,538 (1,032,126) 282,391
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(2,895,804) (525,620) 768,538 (1,032,126) 282,391
BALANCE 197,279 (328,341) 440,196 (591,929) (309,539)
209-EL PRADO LIGHTING DIST 1-REVENUES 5,462 5,662 5,871 6,088 6,314
2-EXPENDITURES - - - - -
OPERATING SURPLUS/(DEFICIT)5,462 5,662 5,871 6,088 6,314
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)5,462 5,662 5,871 6,088 6,314
BALANCE 67,062 72,724 78,595 84,683 90,996
211-1911 ACT STREET LIGHTING 1-REVENUES 1,009,883 1,053,496 1,099,059 1,146,659 1,196,391
2-EXPENDITURES 581,100 1,493,448 535,487 547,803 560,402
OPERATING SURPLUS/(DEFICIT) 428,783 (439,951) 563,572 598,856 635,988
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)428,783 (439,951) 563,572 598,856 635,988
BALANCE 3,440,313 3,000,362 3,563,934 4,162,790 4,798,778
213-WASTE REDUCTION 1-REVENUES 220,990 277,053 242,121 234,092 247,883
2-EXPENDITURES 347,400 355,739 363,864 372,175 380,678
OPERATING SURPLUS/(DEFICIT)(126,410) (78,686) (121,742) (138,083) (132,795)
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(126,410) (78,686) (121,742) (138,083) (132,795)
BALANCE 183,729 105,043 (16,699) (154,783) (287,577)
B-1
CITY OF RANCHO PALOS VERDES, CA - WORK IN PROGRESS - ALL FUNDS
FUND SUMMARY
FUND TYPE 2027B 2028F 2029F 2030F 2031F
214-AIR QUALITY MANAGEMENT 1-REVENUES 44,841 44,938 45,037 45,137 45,240
2-EXPENDITURES - - - - -
OPERATING SURPLUS/(DEFICIT) 44,841 44,938 45,037 45,137 45,240
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)44,841 44,938 45,037 45,137 45,240
BALANCE 229,836 274,774 319,810 364,948 410,188
215-PROPOSITION C 1-REVENUES 903,166 921,229 939,654 949,243 958,933
2-EXPENDITURES 965,000 885,000 840,000 750,000 750,000
OPERATING SURPLUS/(DEFICIT)(61,834) 36,229 99,654 199,243 208,933
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(61,834) 36,229 99,654 199,243 208,933
BALANCE 8,526 44,755 144,409 343,653 552,585
EXCESS/(DEFICIENCY)8,526 44,755 144,409 343,653 552,585
216-PROPOSITION A 1-REVENUES 1,166,195 1,168,189 1,170,223 1,172,298 1,174,414
2-EXPENDITURES 995,180 1,019,064 1,042,503 1,066,480 1,091,009
OPERATING SURPLUS/(DEFICIT) 171,015 149,125 127,720 105,817 83,404
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)171,015 149,125 127,720 105,817 83,404
BALANCE 3,220,330 3,369,455 3,497,175 3,602,992 3,686,397
217-PUBLIC SAFETY GRANTS 1-REVENUES 242,987 243,047 243,108 243,170 243,233
2-EXPENDITURES - - - - -
OPERATING SURPLUS/(DEFICIT) 242,987 243,047 243,108 243,170 243,233
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT 240,000 243,047 243,108 243,170 243,233
TRANSFERS NET (240,000) (243,047) (243,108) (243,170) (243,233)
TOTAL OVER/(UNDER)2,987 - - - -
BALANCE 45,141 45,141 45,141 45,141 45,141
220-MEASURE R 1-REVENUES 783,774 806,084 829,040 852,659 876,962
2-EXPENDITURES 3,595,000 603,000 725,944 473,956 677,037
OPERATING SURPLUS/(DEFICIT)(2,811,226) 203,084 103,096 378,703 199,926
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(2,811,226) 203,084 103,096 378,703 199,926
BALANCE 70 203,154 306,250 684,953 884,879
B-2
CITY OF RANCHO PALOS VERDES, CA - WORK IN PROGRESS - ALL FUNDS
FUND SUMMARY
FUND TYPE 2027B 2028F 2029F 2030F 2031F
221-MEASURE M 1-REVENUES 4,061,802 4,163,198 4,258,860 4,356,720 4,456,830
2-EXPENDITURES 4,638,500 1,653,904 1,108,834 1,134,337 1,160,427
OPERATING SURPLUS/(DEFICIT)(576,698) 2,509,294 3,150,026 3,222,383 3,296,403
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(576,698) 2,509,294 3,150,026 3,222,383 3,296,403
BALANCE 638,454 3,147,748 6,297,774 9,520,157 12,816,560
222-HABITAT RESTORATION 1-REVENUES 2,060 2,101 2,143 2,186 2,230
2-EXPENDITURES 210,000 215,055 220,001 225,061 230,238
OPERATING SURPLUS/(DEFICIT)(207,940) (212,954) (217,858) (222,875) (228,008)
3-TRANSFERS-IN 215,000 199,419 207,502 215,910 224,657
4-TRANSFERS-OUT - - - - -
TRANSFERS NET 215,000 199,419 207,502 215,910 224,657
TOTAL OVER/(UNDER)7,060 (13,535) (10,356) (6,965) (3,351)
BALANCE 7,461 (6,074) (16,430) (23,394) (26,745)
EMERGENCY PROJECTS RESERVE 50,000 50,000 50,000 50,000 50,000
EXCESS/(DEFICIENCY)(42,539) (56,074) (66,430) (73,394) (76,745)
223-SUBREGION ONE MAINTENANCE 1-REVENUES 26,710 27,244 27,789 28,345 28,912
2-EXPENDITURES 141,400 144,794 148,124 151,531 155,016
OPERATING SURPLUS/(DEFICIT)(114,690) (117,549) (120,335) (123,186) (126,104)
3-TRANSFERS-IN 55,000 44,956 46,967 49,062 51,245
4-TRANSFERS-OUT - - - - -
TRANSFERS NET 55,000 44,956 46,967 49,062 51,245
TOTAL OVER/(UNDER)(59,690) (72,593) (73,368) (74,124) (74,859)
BALANCE 669,444 596,851 523,483 449,359 374,500
NON-SPENDABLE ENDOWMENT 750,000 750,000 750,000 750,000 750,000
EXCESS/(DEFICIENCY)(80,556) (153,149) (226,517) (300,641) (375,500)
224-MEASURE A MAINTENANCE 1-REVENUES 580,515 580,525 580,536 580,547 580,557
2-EXPENDITURES 500,000 - - - -
OPERATING SURPLUS/(DEFICIT) 80,515 580,525 580,536 580,547 580,557
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT 80,000 580,525 580,536 580,547 580,557
TRANSFERS NET (80,000) (580,525) (580,536) (580,547) (580,557)
TOTAL OVER/(UNDER)515 - - - -
BALANCE 69,212 69,212 69,212 69,212 69,212
225-ABALONE COVE SEWER DIST 1-REVENUES 65,534 68,433 71,464 74,631 77,942
2-EXPENDITURES 135,300 138,547 141,734 144,994 148,329
OPERATING SURPLUS/(DEFICIT)(69,766) (70,114) (70,270) (70,362) (70,386)
3-TRANSFERS-IN 50,000 106,320 110,434 114,890 119,525
4-TRANSFERS-OUT - - - - -
TRANSFERS NET 50,000 106,320 110,434 114,890 119,525
TOTAL OVER/(UNDER)(19,766) 36,206 40,164 44,528 49,139
BALANCE 122,270 158,476 198,640 243,168 292,307
B-3
CITY OF RANCHO PALOS VERDES, CA - WORK IN PROGRESS - ALL FUNDS
FUND SUMMARY
FUND TYPE 2027B 2028F 2029F 2030F 2031F
228-DONOR RESTRICTED CONTRIB 1-REVENUES 57,775 58,445 59,127 59,824 60,534
2-EXPENDITURES 21,000 21,240 21,476 21,716 21,963
OPERATING SURPLUS/(DEFICIT) 36,775 37,205 37,652 38,107 38,571
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)36,775 37,205 37,652 38,107 38,571
BALANCE 1,076,547 1,113,752 1,151,403 1,189,511 1,228,082
285-IA PORTUGUESE BEND MAINT 1-REVENUES 3,502 3,572 3,643 3,716 3,791
2-EXPENDITURES 51,000 52,224 53,425 54,654 55,911
OPERATING SURPLUS/(DEFICIT)(47,498) (48,652) (49,782) (50,938) (52,120)
3-TRANSFERS-IN 15,000 56,625 58,905 61,276 63,743
4-TRANSFERS-OUT - - - - -
TRANSFERS NET 15,000 56,625 58,905 61,276 63,743
TOTAL OVER/(UNDER)(32,498) 7,973 9,123 10,339 11,623
BALANCE 99,326 107,299 116,423 126,762 138,384
310-CDBG 1-REVENUES 230,000 230,000 230,000 230,000 230,000
2-EXPENDITURES 230,000 150,000 150,000 150,000 150,000
OPERATING SURPLUS/(DEFICIT)(0) 80,000 80,000 80,000 80,000
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(0) 80,000 80,000 80,000 80,000
BALANCE 27,146 107,146 187,146 267,146 347,146
330-INFRASTRUCTURE IMPRVMNTS 1-REVENUES 1,704,591 979,100 998,200 1,017,900 1,038,200
2-EXPENDITURES 12,164,620 9,550,300 5,648,600 6,638,100 7,159,000
OPERATING SURPLUS/(DEFICIT)(10,460,029) (8,571,200) (4,650,400) (5,620,200) (6,120,800)
3-TRANSFERS-IN 9,200,000 5,044,700 4,120,000 3,878,100 3,342,300
4-TRANSFERS-OUT - - - - -
TRANSFERS NET 9,200,000 5,044,700 4,120,000 3,878,100 3,342,300
TOTAL OVER/(UNDER)(1,260,029) (3,526,500) (530,400) (1,742,100) (2,778,500)
BALANCE 18,229,299 14,702,808 14,172,408 12,430,308 9,651,808
EMERGENCY PROJECTS RESERVE 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
EXCESS/(DEFICIENCY)13,229,299 9,702,808 9,172,408 7,430,308 4,651,808
331-FEDERAL GRANTS 1-REVENUES 3,934,715 - - - -
2-EXPENDITURES 3,934,715 - - - -
OPERATING SURPLUS/(DEFICIT)- - - - -
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)- - - - -
BALANCE (74,063) (74,063) (74,063) (74,063) (74,063)
B-4
CITY OF RANCHO PALOS VERDES, CA - WORK IN PROGRESS - ALL FUNDS
FUND SUMMARY
FUND TYPE 2027B 2028F 2029F 2030F 2031F
332-STATE GRANTS 1-REVENUES 1,795,378 1,761,376 1,761,573 1,761,775 1,761,980
2-EXPENDITURES 396,500 406,016 415,354 424,908 434,680
OPERATING SURPLUS/(DEFICIT) 1,398,878 1,355,360 1,346,219 1,336,867 1,327,300
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)1,398,878 1,355,360 1,346,219 1,336,867 1,327,300
BALANCE 1,242,478 2,597,838 3,944,056 5,280,924 6,608,223
334-QUIMBY PARK DEVELOPMENT 1-REVENUES 2,163 2,206 2,250 2,295 2,341
2-EXPENDITURES - - - - -
OPERATING SURPLUS/(DEFICIT)2,163 2,206 2,250 2,295 2,341
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)2,163 2,206 2,250 2,295 2,341
BALANCE 68,116 70,322 72,573 74,868 77,209
336-LOW-MODERATE INCOME HOUSI 1-REVENUES 54,631 56,670 58,793 61,005 63,308
2-EXPENDITURES - - - - -
OPERATING SURPLUS/(DEFICIT) 54,631 56,670 58,793 61,005 63,308
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)54,631 56,670 58,793 61,005 63,308
BALANCE 642,215 698,885 757,678 818,683 881,991
337-AFFORDABLE HOUSING PROJ 1-REVENUES 32,136 32,779 33,434 34,103 34,785
2-EXPENDITURES - - - - -
OPERATING SURPLUS/(DEFICIT) 32,136 32,779 33,434 34,103 34,785
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)32,136 32,779 33,434 34,103 34,785
BALANCE 1,056,589 1,089,368 1,122,802 1,156,905 1,191,690
338-DEVELOP IMPACT MIT (EET) 1-REVENUES 7,940 7,899 7,857 7,814 7,770
2-EXPENDITURES - - - - -
OPERATING SURPLUS/(DEFICIT)7,940 7,899 7,857 7,814 7,770
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)7,940 7,899 7,857 7,814 7,770
BALANCE 126,916 134,815 142,672 150,485 158,256
340-BICYCLE/PEDESTRIAN ACCESS 1-REVENUES 174,248 174,248 174,248 174,248 174,248
2-EXPENDITURES 140,000 - - - -
OPERATING SURPLUS/(DEFICIT) 34,248 174,248 174,248 174,248 174,248
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)34,248 174,248 174,248 174,248 174,248
BALANCE 34,248 208,496 382,744 556,992 731,240
B-5
CITY OF RANCHO PALOS VERDES, CA - WORK IN PROGRESS - ALL FUNDS
FUND SUMMARY
FUND TYPE 2027B 2028F 2029F 2030F 2031F
343-MEASURE W 1-REVENUES 1,459,122 1,460,304 1,461,511 1,462,741 1,463,996
2-EXPENDITURES 2,221,100 2,604,966 3,733,481 1,077,421 1,016,796
OPERATING SURPLUS/(DEFICIT)(761,978) (1,144,662) (2,271,970) 385,320 447,199
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(761,978) (1,144,662) (2,271,970) 385,320 447,199
BALANCE 1,192,703 48,041 (2,223,929) (1,838,609) (1,391,410)
681-EQUIPMENT REPLACEMENT 1-REVENUES 197,700 224,675 211,127 209,612 217,864
2-EXPENDITURES 401,922 401,922 401,922 401,922 401,922
OPERATING SURPLUS/(DEFICIT)(204,222) (177,247) (190,795) (192,310) (184,058)
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(204,222) (177,247) (190,795) (192,310) (184,058)
BALANCE 2,706,887 2,529,640 2,338,845 2,146,535 1,962,477
682-EMPLOYEE PENSION PLAN 1-REVENUES 40,891 41,709 42,543 43,394 44,262
2-EXPENDITURES 881,000 745,000 940,000 985,000 1,022,000
OPERATING SURPLUS/(DEFICIT)(840,109) (703,291) (897,457) (941,606) (977,738)
3-TRANSFERS-IN 400,000 734,388 929,176 973,959 1,010,738
4-TRANSFERS-OUT - - - - -
TRANSFERS NET 400,000 734,388 929,176 973,959 1,010,738
TOTAL OVER/(UNDER)(440,109) 31,097 31,719 32,353 33,000
BALANCE 482,157 513,254 544,972 577,325 610,326
795-IA ABALONE COVE MAINT 1-REVENUES 22,800 22,804 22,808 22,812 22,816
2-EXPENDITURES 23,000 23,552 24,094 24,648 25,215
OPERATING SURPLUS/(DEFICIT)(200) (748) (1,286) (1,836) (2,398)
3-TRANSFERS-IN - - - - -
4-TRANSFERS-OUT - - - - -
TRANSFERS NET - - - - -
TOTAL OVER/(UNDER)(200) (748) (1,286) (1,836) (2,398)
BALANCE 1,196,048 1,195,300 1,194,014 1,192,179 1,189,781
NON-SPENDABLE ENDOWMENT 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
EXCESS/(DEFICIENCY)196,048 195,300 194,014 192,179 189,781
B-6